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FY 2018-19 Adopted Operating & Capital Budget • I I • � I I • I YF � t '► t e � -10 ,ry , 'w - tam. �� :� �•. � � ,� . k^, immunity Art rojects IT 1 r � t�{i• �; 1 4 SARATOGA CITY COUNCIL Mary-Lynne Bernald Manny Cappello Mayor Vice Mayor Howard Miller Emily Lo Risl i Kumar Council Member Council Member Council Member Operating & Capital Summary Budget for Fiscal Year July 1, 2018 to June 30, 2019 Prepared under the direction of JamesLindsay...........................................................................................................................................City Manager Mary Furey................................................................................................Finance&Administrative Services Director 13777 Fruitvale Avenue,Saratoga,CA 95070 www.sarato ag ca.us CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET of S Ay o 1956 1�O CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY OF SARATOGA TABLE OF CONTENTS INTRODUCTION CityManager's Budget Message .......................................................................................................................................1 1 FY2017/18 Accomplishments...........................................................................................................................................13 FY2018/19 Initiatives........................................................................................................................................................14 FinancialOverview.............................................................................................................................................................15 CapitalBudget Highlights..................................................................................................................................................26 Government Finance Officers Association Budget Award.................................................................................................28 History&Culture of Saratoga............................................................................................................................................29 CityCommissions...............................................................................................................................................................34 StrategicGoals&Objectives..............................................................................................................................................37 BudgetProcess Overview...................................................................................................................................................42 BudgetCalendar.................................................................................................................................................................44 FundDescriptions...............................................................................................................................................................46 BudgetaryFund Structure...................................................................................................................................................49 Departmentto Fund Relationship.......................................................................................................................................50 Listof Funds.......................................................................................................................................................................51 Listof Programs.................................................................................................................................................................52 Fiscal Management Policy Statements ..............................................................................................................................55 Fund Balance Reserve Policies...........................................................................................................................................64 CIPProject Process Policy.................................................................................................................................................75 Gann Appropriation Limit and Resolution.........................................................................................................................80 AnnualBudget Resolution..................................................................................................................................................83 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION FINANCIAL SUMMARIES Total Revenues and Expenditures TotalFund Activity Summary............................................................................................................................................89 TotalRevenues—by Fund..................................................................................................................................................90 TotalExpenditures—by Fund.............................................................................................................................................92 TotalRevenues—by Category............................................................................................................................................94 TotalExpenditure—by Category........................................................................................................................................95 General Fund Revenues and Expenditures General Fund Revenues—by Department..........................................................................................................................96 General Fund Expenditures—by Department.....................................................................................................................97 General Fund Revenues—by Category..............................................................................................................................98 General Fund Expenditures—by Category.........................................................................................................................99 General Fund Tax Revenues per Capita—Cities of Santa Clara County.........................................................................100 General Fund Tax Revenues— 10 Year History of Key Tax Revenues............................................................................101 General Fund—Fund Balance Activity............................................................................................................................102 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 0 TABLE OF CONTENTS Operating Transfers Scheduleof Interfund Transfers.......................................................................................................................................103 Fund Balance Total Fund Balance Activity Summary-by Fund............................................................................................................104 Fund Balance-5 Year Comparative Balances ................................................................................................................106 Departmental Budgets Department Revenues—by Program................................................................................................................................108 DepartmentExpenditures—by Program...........................................................................................................................110 SUPPLEMENTAL INFORMATION Employee Information Summaryof Employee Salary&Benefits........................................................................................................................114 Total Funded Positions by Department............................................................................................................................120 Staffing by Department—Five Year History....................................................................................................................122 Staffingby Fund—Five Year History..............................................................................................................................123 Major Revenue Information GeneralFund Revenues....................................................................................................................................................126 Non-General Fund Revenues............................................................................................................................................132 CapitalRevenues..............................................................................................................................................................133 Long Range Financial Planning General Fund Five Year Forecast.....................................................................................................................................136 DEPARTMENTAL BUDGETS OVERVIEW Department/Program List............................................................................................................................................. 143 OrganizationChart...........................................................................................................................................................145 COUNCIL&COMMISSIONS Council&Commissions Overview..................................................................................................................................147 CityCouncil......................................................................................................................................................................151 CityCommissions.............................................................................................................................................................153 CITY MANAGER'S DEPARTMENT CityManager's Department Overview.............................................................................................................................157 CityManager's Office......................................................................................................................................................163 CityClerk.........................................................................................................................................................................169 PublicInformation Office.................................................................................................................................................173 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET TABLE OF CONTENTS ADMINISTRATIVE SERVICES DEPARTMENT Administrative Services Department Overview...............................................................................................................177 Finance.............................................................................................................................................................................183 HumanResources.............................................................................................................................................................187 AdministrativeServices....................................................................................................................................................191 OfficeSupport Services ...................................................................................................................................................195 InformationTechnology Services.....................................................................................................................................197 ITEquipment Replacement .............................................................................................................................................201 COMMUNITY DEVELOPMENT DEPARTMENT Community Development Department Overview............................................................................................................205 DevelopmentServices......................................................................................................................................................211 AdvancedPlanning...........................................................................................................................................................215 CodeCompliance ............................................................................................................................................................219 Building&Inspection Services........................................................................................................................................223 PUBLIC WORKS DEPARTMENT PublicWorks Department Overview................................................................................................................................227 GeneralEngineering.........................................................................................................................................................233 DevelopmentEngineering................................................................................................................................................237 EnvironmentalServices....................................................................................................................................................241 Streets&Storm Drains.....................................................................................................................................................245 Parks&Landscape Maintenance......................................................................................................................................249 Vehicle&Equipment Maintenance..................................................................................................................................253 Vehicle&Equipment Replacement.................................................................................................................................257 Landscape&Lighting Districts........................................................................................................................................260 RECREATION&FACILITIES DEPARTMENT Recreation&Facilities Department Overview.................................................................................................................263 RecreationServices..........................................................................................................................................................269 TeenServices....................................................................................................................................................................273 FacilityRentals.................................................................................................................................................................277 FacilityMaintenance .......................................................................................................................................................281 Facility Furniture,Fixtures&Equipment(FFE)Replacement .......................................................................................285 PUBLIC SAFETY DEPARTMENT PublicSafety Department Overview................................................................................................................................289 PublicSafety Services......................................................................................................................................................293 EmergencyPreparedness..................................................................................................................................................299 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET TABLE OF CONTENTS NON-DEPARTMENTAL Non-Departmental Overview............................................................................................................................................303 GeneralAdministration....................................................................................................................................................307 LegalServices..................................................................................................................................................................311 CommunityGrants...........................................................................................................................................................315 CommunityEvents ..........................................................................................................................................................317 EmergencyOperation.......................................................................................................................................................321 Risk Management/Liability Insurance..............................................................................................................................323 WorkersCompensation Insurance....................................................................................................................................327 WestValley Clean Water Program...................................................................................................................................331 General Obligation Bond Debt Service............................................................................................................................333 CAPITAL IMPROVEMENT PLAN Capital Improvement Plan Overview...............................................................................................................................337 StreetsProjects.................................................................................................................................................................347 Parks&Trails Projects.....................................................................................................................................................407 FacilityImprovements Projects........................................................................................................................................447 Administrative&Technology Improvements Projects....................................................................................................475 REFERENCE SECTION CityStatistics....................................................................................................................................................................513 Listof Acronyms..............................................................................................................................................................523 Glossary............................................................................................................................................................................525 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 0 CITY OF SARATOGA INTRODUCTION SECTION CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 INTRODUCTION SECTION CITY HALL 13777 FRUITVALE AVENUE SARATOGA, CALIFORNIA 95070 (408) 868-1200 May 16,2018 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)2018/19. The City's financial position at the close of FY 2017/18 is projected to be considerably better than expected;General Fund revenues are anticipated to exceed Adjusted Budget by$2.9 million. The revenue growth we are experiencing comes primarily from property taxes which correlates directly to the significant increase in housing prices. The housing market in Saratoga and throughout Silicon Valley continues to be among the most competitive in the United States. As of March 2018,the average median home price in Santa Clara County was roughly$1.3 million and just over$3 million in Saratoga. Just five years ago,the median household price was$681,000 in Santa Clara County and $1.82 million in Saratoga. Many market experts expect housing prices will continue to climb. Additionally,because property tax revenue increased rapidly State-wide,mandated school allocations have been more than met, and cities are (temporarily) receiving Educational Revenue Augmentation Fund funding. This unanticipated and unbudgeted funding stream brought Saratoga an additional$313,836 of property tax revenue in FY 2017/18. Successive years of strong financial growth have allowed the City to continue to respond to the needs of the Saratoga community without impacting fiscal stability; this fiscal year is no exception. Due to the phenomenal growth in housing prices and with Saratoga's aging population, the City has seen a growing need for safety net service. The City Council has historically provided funding for services organizations, such as the Saratoga Area Senior Coordinating Council,West Valley Community Services,Catholic Charities,and United Way 211. In the last couple of years,it has become evident that needs have increased. Over the past two budgets,the City's service organization funding has grown approximately 50 percent. A portion of this increased funding has been dedicated to the senior transportation program`Reach Your Destination Easily',which offers affordable curb-to-curb transportation to West Valley residents age 55 and older. The program is jointly funded by the West Valley cities,Valley Transportation Authority and the County of Santa Clara to help older adults in our community age in place,engage in the community,and access services. In FY 2018/19,the City has also increased its funding commitment for West Valley Community Services to provide additional case management work for Saratoga residents. West Valley Community Services provides a wide range of services, including benefits assistance (such as Covered California and CalFresh) for low income and high-risk households, a food pantry that serves Saratoga and other neighboring communities, housing resources for homeless individuals and families or those at risk for losing their home,emergency financial assistance,educational programs, and more. Since 2015, West Valley Community Services has seen a 35% increase in demand for services. The additional funding from the City will allow for a part-time Intake and Outreach Worker in Saratoga,making it easier for residents to access services. Efforts to become an Age-Friendly City have also highlighted needs of residents with physical disabilities. In an effort to ensure that City services and resources are accessible to all segments of the population, the Council funded an assessment of City owned parking areas and intersections to identify areas for improvements for those with mobility challenges. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION While the City has broadened its scope beyond the services traditionally offered in Saratoga,the City remains nimble and responsive in the event of an unexpected downtown. There is no doubt that there will be another recession in the future. Consequently, the Finance Committee has worked to identify potential indicators of economic decline, and outlined ways the City could respond while continuing to meet core obligations. Additionally, the City remains committed to its essential services and responsibilities. The Council continues to address the City of Saratoga's pension liability with the California Public Employee's Retirement System(Ca1PERS), while also continuing to focus on improving the conditions of our local roads and meeting other citywide infrastructure needs. The proposed FY 2018/19 Budget contains a $250,000 increase for the City's Tier I Unfunded Accrued Liability(UAL)payment, and another$50,000 to pay off the City's Tier 11 and Tier III unfunded liabilities. In past fiscal years, the Council committed to an annual liability payment of$500,000 toward the Tier I liability, then increased that amount to $750,000 last fiscal year after several actuarial changes increased the liability by approximately 40%. The Tier II and Tier III liabilities occurred with last year's actuarial changes,and because they are minimal,can be paid off in full this year. Additional financial challenges are expected in upcoming years as the City addresses a proportional share of the Santa Clara County Sheriff's Office Public Safety required UAL contributions through increased service costs. Furthermore,the proposed Capital Budget for FY 2018/19 reflects the Council's commitment to uphold the quality of life for Saratoga residents. Last fiscal year,the Council adopted a goal of allocating$2 million for roadway resurfacing and restoration. The City anticipates reaching this goal in FY 2018/19 due in part to the passage of Senate Bill(SB) 1 and VTA's Measure B,which raised the gas tax,vehicle registration fees,and the County sales tax. Saratoga will receive approximately$540,000 in additional tax revenue from SB 1 in FY 2018/19. Measure B funds are currently being held in escrow due to unresolved litigation. If the litigation is resolved next fiscal year, Saratoga will receive two years of funding totaling$1.17 million($586,000 per year). The total potential funding for roadway resurfacing and restoration in FY 2018/19 could reach$2.8 million. Not only will this funding improve the quality of Saratoga roadways,it will reduce long-term infrastructure costs that increase rapidly as roads age. In addition to planning for future financial obligations, such as pensions and infrastructure, the City also faces the challenge of compliance with unfunded mandates from the State and Federal government. Growing State and Federal regulations continue to tax the resources of local governments. Among the most significant are Regional Water Quality Control Board regulations associated with the National Pollutant Discharge Elimination System permits that local governments are required to obtain. The State has still has not provided a viable revenue source for local governments to fund compliance with the growing permit requirements. This obligation, along with the growing pension liabilities,are two of the largest long-term financial challenges in the coming years for the City. As a result, any organizational changes are carefully considered, with pension obligations and larger succession planning efforts in mind to ensure continuity of City operations and services. Two organizational changes are proposed in the FY 2018/19 budget. This includes conversion of the Recreation Supervisor to a Recreation Manager and a Plan Check Engineer to a Building Official. These changes provide increased management capacity in both the Recreation&Facilities and Community Development departments to provide a higher level of oversight and delivery of services. Overall,the City's finances remain healthy. During this time of plenty,the City is exploring measured and careful approaches to expand services to address the needs of the community, become more inclusive, and respond to increasing mandates. The City is focused on maintaining its commitment to its basic obligations, while keeping safeguards in place that will allow the City to respond quickly and effectively in the event of a recession without sacrificing core services. Sincerely, 4iOL-J'o Je,sLindsay anager CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION Accomplishments FY 2017/ 18 A look back at notable achievements Community Art a : - In FY 2017118, the City made strides in engaging the community in public art, As part of Paint the City:Utility Box Painting Project, Saratoga artists were asked to submit conceptual designs for 7 utility box locations throughout the City and then the community was challenged to select their _ favorite artwork for each location with close to 700 residents participating in the selection process. All utility boxes were cleaned and prepared by community volunteers.Additionally,#SaratogaROCKS provided residents of all skills with the opportunity to take up the paint brush and paint rocks, add their name and the hashtag#SaratogaROCKS, then place them around the City in a safe spot. Residents can decorate their own rocks or borrow one of the#SaratogaROCKS kits to get started. R.Y.D.E. In October 2017,the City,its West Valley city partners,Santa Clara County,Valley Transportation Authority, Saratoga Area Senior Coordinating Council(SASCC), and West Valley Community Services celebrated the launch of a pilot program called R.Y.D.E. (Reach your Destination Easily) to offer affordable curb-to-curb transportation and trip planning services to ambulatory adults age 55 and older in the West Valley.R.Y.D.E. is operated by SASCC and West Valley Community Services,with SASCC serving Saratoga, Los Gatos, and Monte Sereno and West Valley Community Services serving Campbell and Cupertino. R.Y.D.E. is bridging critical transportation gaps for older adults in the West Valley in a fiscally responsible manner. Public Safety Reducing crime continues to be a priority of the City.The City increased public safety communications with the mailing of a quarterly safety tip postcard and quarterly Neighborhood Watch e-newsletter.Additionally,the City and Public Safety Task Force held the Saratoga Safety Fair at West Valley College in May 2018. The increased awareness contributed to a decrease in the average number of residential burglaries over the summer months from 15 in 2016 to 3 in 2017. Neighborhood Watch Safe Routes to School Interest in Neighborhood Watch continued to grow in In April 2018, the City Council adopted a resolution FY 2017118. There are now 68 Neighborhood Watch in support of Safe Routes to School to reaffirm its groups.The City hosted a gathering of Neighborhood commitment to providing safe opportunities for Watch leaders in October 2017 and a combined students to walk or bike to school as part of an effort gathering of Neighborhood Watch leaders and CERT to reduce rates of childhood obesity. members in April 2018. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION Initiatives FY 2018/ 19 A look forward at future priorities Prospect Road Median Improvements Improvements to Prospect Road began in 2017 and is scheduled to continue through fall of 2018.The project will make a number of improvements along the 1.9 mile stretch of Prospect Road between Lawrence Expressway and Saratoga-Sunnyvale Road,including new medians,bicycle lanes, sidewalks, and landscaping.The project cost is approximately$7 million and roughly 88% of the project is funded by grants. Additional grant funds became available in FY 2017/18, allowing the City to further leverage its funds to make improvements along this major thoroughfare in Saratoga. Public Health Safety Net Services The City Council prioritized a number of In FY 2018/19, the City will make increased strategies to improve public health in Saratoga to contributions to safety net services for Saratoga be implemented in the coming fiscal year. This residents. This includes an additional $20,000 for includes prohibiting sales of tobacco products West Valley Community Services,which provides a at pharmacies to reduce youth access to tobacco continuum of basic needs,family support services, and adoption of a water access policy, which will and housing services, including food pantry require City park or facility improvements over services. Funding for R.Y.D.E., Catholic Charities $150,000 to include installation of a water fountain Long-Term Ombudsman Program, and United Way and bottle filling station. 211 have also been continued in FY 2018/19. aaav v (S6w Engagement In an effort to broaden the City's reach, funding for translation services has been allocated in the FY 2018/19 budget. This will allow the City to translate several key City publications into Chinese, including the Saratoga Source,the City's monthly newsletter.Chinese is the second most common language used in Saratoga households after English. Youth in Government Accessibility This summer, the City will launch a new summer Several projects have been funded in the FY 2018/19 program to introduce high school students in budget to help make City facilities more accessible and Saratoga to local government and provide hands- approachable for older adults and individuals with on experience. The Youth in Government Internship disabilities. These projects include an accessibility Program will begin July 30 and lasts roughly 2 weeks. assessment of City parking areas and traffic signals and remodel to the Senior Center entrance. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION FINANCIAL OVERVIEW GENERAL FUND NET OPERATIONS FY 2018/19 General Fund budgeted funding sources exceeds budgeted funding uses by $442,000 after funding planned operational functions and services with dedicated taxes,program fees, service charges,permits, and various other revenues sources. As is standard practice, revenues are budgeted conservatively to provide a GENERAL hedge against shortfalls and sudden economic Revenues 22,296,576 declines, while expenditures are budgeted at full Transfers In - anticipated cost for the planned services. Net Total Revenues and Transfers In 22,296,576 Operations is the end result of these conservative Use of Fund Balance budget practices. Enviomme ntal Reserve 50,000 As a function of conservative budgeting, the fiscal Capital/Efficiency Project Re serve 1,270,000 year typically ends with higher than budgeted excess Total Funding Sources $ 23,616,576 funding. After the fiscal year closes,Net Operations Expenditures 21,954,691 are allocated to reserves as defined under the General Fund Reserve Policy. Subsequently, Capital Project Use of Fund Balance Reserve funds are then allocated to various capital C apital/Ef f ic ie nc y Proj e c t Re s e rve 1,270,000 projects at the following year's Council Retreat. This Total Funding Uses $ 23,224,691 result is represented as the Capital/Efficiency Project Reserve amount in the adjacent schedule. NET OPERATION— :: Notable Operational Funding Increases In the FY 2018/19 Operating Budget, there are a number of new or additional operational activities to support Council's objectives that enhance the quality of life in Saratoga through: public safety enhancements; fostering of community engagement; responsiveness to citizen's needs; and promotion of government efficiency. Changes that impact budgeted resources include: • $20,000 of funding was added to support Public Safety Task Force activities that provide opportunities for collaboration between the Community Emergency Response Team(CERT)program volunteers,Neighborhood Watch leaders, the Public Safety Task Force, and the Saratoga community. The City Manager's and Public Information Office will prepare public safety videos,brochures, and safety tip and reminder mailings and help put on a public safety fair and small-group discussion meetings. These efforts are expected to effectively increase community awareness in the public safety arena. • Placeholder funding of$15,000 was added for a possible South Bay Roundtable contribution to focus on air plane flight patterns and related noise issues. • Council's concern for communicating with a sizeable base of Saratoga residents who cannot easily read English language documents prompted a $10,000 funding allocation for translation services after the County Board of Elections reported more than 1,000 Saratoga residents requested election materials in Chinese. Election materials in a number of other languages were also requested,but in far lower quantities. Budgeted funds will be used to convert the online Saratoga Source email newsletter and a few other informational documents to Traditional Chinese and possibly one additional language. • In light of the housing crisis and growing homelessness issues in Silicon Valley,the City Council will provide an additional $20,000 to the West Valley Community Services (WVCS) non-profit charitable community-based agency to fund a shared staff person for dedicated assistance and referral services to the Saratoga community on a'h time basis. This added resource will focus on: family support and emergency assistance; food and nutrition services;and shelter and housing assistance. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION • The City's Community Event grant program provides funding to various community groups to assist with an assortment of community-wide events, such as the Classic Car Show, Blossom Festival, the Fourth of July, Hakone Matsuri, Shushan County Fair,Opera in the Park,the Senior Center Health Fair,and many others. The Council decided to increase the event funding program by $15,000 to provide for an additional street-closure event,such as a village dinner to promote the Village's wine bars,or a community parade;to be determined. • $30,000 of additional funding was included to fund an anticipated increase in credit card transaction fees from the prior year. As of January 1, 2018, the City eliminated the fee collected to help offset costs charged by the credit card processor for credit card transactions. While the revenue collected was significantly below the transactional cost, the elimination of this fee has resulted in a growing number of customers using their credit cards to pay for services and fees. Fortunately a revised service fee contract resulted in lower transactional costs. The large fee expense increase was programed as a safeguard. After a full year of cost data,this budgeted amount may decrease if warranted. • Geographical Information Systems (GIS) data provides vital data for development and engineering functions. The City has tried to manage this workload in-house with the use of City and temporary part-time staff,but has been unsuccessful due to turnover. As an alternative,$30,000 of funding was programed into the budget to utilize a GIS consultant and for the annual GIS Software License/Support (ESRI) expense, as a shared cost between Community Development and Public Works Engineering. • To improve workload efficiency and functionality, staff is assessing financial statement and budget document preparation, and/or document management system software to manage off-system financial data and record documentation. An additional$40,000 was budgeted as a placeholder for this purpose. • The economic boom in Silicon Valley has resulted in a more competitive employee recruitment and retention marketplace. Efforts to ensure employees are content with their employment has led to more creative offerings and benefits in the workplace. In keeping with this spirit, Council has directed the City Manager to look into establishing employee retention and recruitment incentive program options within a$20,000 funding allotment. • The City is now serving as the fiscal agent for the West Valley Clean Water program effective July 1,2018. This program increases budgeted revenues and expenses by almost$1 million of non-City funds. Additional expenses in next year's budget reflect ongoing increases in staffing costs, services, fees, licenses and support,materials,equipment,and the uptick in activity and services that has grown with the economy. For a high-level summary perspective, the following graph depicts the historical General Fund Revenues versus General Fund Expenditures trend line—net of Transfers and Use of Fund Balance,to show the results of the City's operational sustainability for the last ten years,current year estimates,and next year's budget. s ndi_tur_e $24,000,000 $22,000,000i $20,000,000' $18,000,000 $16,000,000 1 $14,000. SY00 $12,000,000.[ $10.000.000 #p% �pOg��Y O��E�I QFj n' 11,F•[2ot��l3g2p1Sl�� TQ liyl15 51�0 61\1 '1INS gj1g Note—The FY 2014115 expenditure spike reflects a one-time$3.3 million Unfunded Accrued Liability(UAL)payment that was funded from both current year operational funds and reserves. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION The graph begins in FY 2007/08,the first year of the TEA partial funding restoration,and then drops into the beginning of the recession the following year. The three-plus year recession shows that although operational expenditures were very close to revenues,the City successfully managed its way through the financial downturn. FY 2011/12 shows the initial economic turn-around with property tax and development revenues climbing up from the slump. This economic climb has continued through to the proposed budget year of FY 2018/19,both with increasing revenues and increasing expenditures. The FY 2014/15 expenditure spike is an anomaly caused by a$3.3 million dollar payment to CalPERS to pay down almost 43%(at that time)of the City's Unfunded Accrued Liability(UAL). To make this payment, $2.4 million of Fund Balance Reserves was used,meaning true operational expenditures were$17.4 million rather 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 2018/19 expenditures. The narrowing of the gap in FY 2018/19 revenues and expenditures portrays a conservative revenue budget. This flattening of the revenue line and near touching to the expenditure line succinctly illustrates the City's practice of conservative budgeting. REVENUES The chart on the right shows the City's total revenue by fund type to illustrate the magnitude of General Fund revenues in comparison to other fund types. General Fund Revenues are"general"in nature and provide funding for a majority of the City's functions and services over a broad spectrum of activities. Because of this, this Financial Overview FY 2018/19 section focuses on the General Fund. Revenues by Fund capital Other fund types, by concept, are limited to specific Funds p p 3% purposes. For example, Special Revenue Funds, set up for 25% the City's discrete Landscape and Lighting Zones, receive property assessment revenues that must be used for lighting Trust& and/or landscape maintenance services within the specific Agency district's boundaries. Internal Service Funds receive charge-back fees from all of the City's operational units to Debt Sen ice General provide a specified type of service(such as IT),or to replace 2 Fund Internal Senice 60% assets (such as computers), in support of their functional 8% activities. The General Obligation Bond Debt Fund Special Revenue receives property tax assessment revenue to pay the 2001 2% Library Bond's debt obligations. Capital Improvement Program(CIP)Funds are comprised of projects with stated scopes of work and funding sources. Dedicated revenues such as Gas Tax, Road Impact Fees, and grants, as well as General Fund reserve transfers provide funding for the capital project work. General Fund-In the General Fund,Property Tax revenues make up Saratoga's largest revenue source,followed by 2) Franchise Fees, 3) Charge for Services, 4) Fees, Licenses &Permits, and 5) Sales Tax. These top five revenue sources comprise 90% of General Fund Revenue. Other revenue categories, such as rental income, transient occupancy tax,and construction tax,are also important,but fluctuations in these revenues do not individually impact the City's fiscal sustainability. With property taxes alone making up almost 60% of the General Fund Revenues, a clear understanding of this revenue source is paramount. Saratoga's Property Tax- Saratoga is a bedroom community with just over 30,000 residents. Residents enjoy their quiet neighborhoods nestled against the Santa Cruz Mountain foothills, and their nearby commute to 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. Housing prices are at a premium due to its highly ranked school system, and the diversity of cultures makes Saratoga an interesting, lively, and welcoming community for all ages. The quaint,historic downtown Village provides fine dining establishments and wine-tasting shops,and is the gateway to the historic Hakone Japanese Garden, the Montalvo Arts Center, the Mountain Winery entertainment venue, and CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION numerous open space trails within the Santa Cruz Mountains. The abundance of activities and positive characteristics combine to make Saratoga a highly desirable place to live, and is reflected in Saratoga's housing prices, and subsequently,its Property Taxes. Santa Clara County oversees the property tax collection and distribution process on behalf of the State of Property Tax Distribution California. The County distributes the property taxes scvwD paid by Saratoga property owners to multiple agencies 1.61% and funds. Due to special legislation passed 30+ ears other p g p y Special ago, Saratoga and three other small Santa Clara County Districts cities (Los Altos Hills, Cupertino, and Monte Sereno) .., 4.71 only received a portion of the minimum 7% tax �.�city of allocation prescribed by State law. agog Saratoga 5.45% When Proposition 13 was passed in 1978,the legislation lop held cities to the tax rates that were in place in the prior year. Saratoga, along with the cities of Cupertino,Los Altos Hills,and Monte Sereno,were among the cities in Santa Clara County that had no or very low property taxes. To mitigate this, legislation was passed in 1979 to bring no/low tax cities up to the minimum property tax rate of 7%. However,the legislation provided an exception that allowed Counties to retain the increase in property tax allocations if they choose to forego Trial Court funding. Because Santa Clara County would receive more funding by retaining Property Tax from the four no/low tax cities, than from Trial Court funding, they chose to retain the property tax,thereby limiting the amount of property taxes these four cities were to receive to 55%of the 7%. Throughout the years, the four cities launched collaborative lobbying efforts to introduce and pass legislation that would treat Saratoga, Cupertino, Los Altos Hills, and Monte Sereno like all the other no/low tax cities, and receive the minimum 7% allocation 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 cities' much smaller ERAF rate of between approximately 9 and 17%. The County ERAF rate continued to result in a significant revenue shortfall, so the four cities continued to press for the full reinstatement of the 7% TEA funding. Fortunately, strong property tax revenue growth after the recession brought a financial momentum that helped convince State legislators they could afford to reinstate the four cities' share of property tax revenue. Legislation was passed as part of the FY 2015/16 budget trailer bill that restored the funding back to the cities at an incremental 20%per year over the next five-year period. When enacted,the restoration was valued at an additional$660,000 of property tax revenue to the City each year when fully restored. This amount grows each year with the increase in assessment values. Property Tax Revenue Trends— Since the recession,property taxes have grown extraordinarily fast; between 6.2% and 9.6% each year. TEA reinstatement funds as well as additional ERAF allocations have contributed to this phenomenal revenue growth. In total,FY 2017/18 Property Tax revenue grew by$1,000,000 from the prior year,due to the third 20% TEA allocation of approximately $140,000, and the one-time ERAF payment of$313,000. For ongoing revenue increases,the economy will need to continue this strong market demand that is driving home prices higher, and the ownership turnover of long-term residents which has generated record high Transfer Tax receipts. While these value factors are still in play,a drop in property transfers or Construction Tax revenue would change this economic tide. As of the end of FY 2017/18, indications are Saratoga's strong housing boom will continue into FY 2018/19,although there are preliminary hints of a softening economy. This potential softening threat is offset by the conservative forecast practices that limit budgeted revenue growth to 3%,plus the addition of the fourth 20%ERAF allocation. Further,because ERAF property tax funding is unreliable,this revenue stream is not included in budgeted revenues. Development Revenues-With housing turnover,many homeowners undertake remodeling projects and upgrades. This connection is directly linked to the heightened level of activity in development applications,plan checks,and building permits since the end of the recession. However, the high level of development activity that increased both CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 0 INTRODUCTION SECTION Community Development and Public Works' revenues over the last five years dropped in FY 2016/17. Revenue increased again in FY 2017/18, but the volatility suggests that development revenues are near capacity and growth will be limited, if at all. As a result, most development revenue is budgeted conservatively, with the exception of Engineering's Encroachment Fees that grew as a result of a revised fee schedule. For FY 2018/19,revenue projections are being held to lower levels to reflect more of an average level of activity. Recreation Revenues - Recreation revenues have struggled in recent years. What used to be a standard of City government, recreation offerings have transitioned to church groups, private schools, and many independent recreation,exercise,and adventure businesses. FY 2017/18 revenues dropped considerably from the prior year, and staff is examining data to better understand the contributing factors. As a result,the City is potentially entering into a service agreement with Los Gatos-Saratoga Recreation District to bring in their experienced and local recreation staff for program oversight. Success will be defined by an increase in class participation and revenue generated. The following schedule provides a high-level summary of General Fund Revenues and Transfers In. Budgeted FY 2018/19 revenues are displayed in the far right darker brown column. FY 2017/18 Adjusted Budget and Actual Revenues are the two lighter brown columns to the immediate left. Actual revenues for the three prior fiscal years are the unshaded first,second,and third columns of numbers. GENERAL FUND REVENUES & TRANSFERS IN FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2017/18 2018/19 General Fund Revenues Actuals Actuals Actuals Adjusted Actuals Adopted Property Tax 10,436,621 11,301,176 12,003,942 12,110,800 12,963,531 13,189,900 Sales Tax 1,224,427 1,189,398 1,185,035 1,150,000 1,124,647 1,050,000 Transient Occupancy Tax 309,618 319,109 343,618 315,000 389,037 350,000 Business &Other Taxes 556,654 578,652 513,431 505,000 571,326 580,000 Franchise Fee Tax 2,234,068 2,235,514 2,356,539 2,349,429 2,338,794 2,462,000 Intergovernmental 586,596 547,075 584,480 372,000 557,026 487,500 Fees,Licenses &Permits 1,409,199 1,544,844 1,500,843 1,407,400 2,217,363 1,724,150 Charge for Services 1,789,649 2,079,939 1,666,164 1,682,215 1,671,955 1,531,698 Interest 45,229 79,341 102,787 147,500 270,929 254,500 Rentallncome 474,750 527,596 494,176 463,802 445,161 410,606 Other Sources 452,734 379,952 361,396 274,627 420,339 256,222 Total GF Revenues 19,519,545 20,782,596 21,112,412 20,777,773 22,970,107 22,296,576 Fund Transfers In 267,918 55,384 32,000 442,198 - Total Rev&Transfers 19,519,545 21,050,514 21,167,796 20,809,773 23,412,305 22,296,576 Use of(Addition to)Fund Balance Reserves Carryforward Reserve 118,788 176,560 - 7,246 7,246 - Development Reserve - 60,000 - - - - Environmental Reserve 50,000 50,000 50,000 50,000 50,000 50,000 CIP Reserve 2,133,345 1,777,896 1,410,648 1,872,909 1,872,909 1,270,000 Hillside Reserve - - 210,000 - (210,000) - Fiscal Stabilization Loan 1,000,000 - Fiscal Stabilization Repa (500,000) (250,000) (250,000) Working Capital Reserve 930,184 - - Total Operating Sources 23,251,862 22,864,970 22,588,444 22,739,928 25,132,460 23,616,576 In comparing the next fiscal year's budget to the prior year's budget, it is useful to understand the following year's budget is strongly guided by the current year's year-end projections at the time of preparation,unless unusual activity is known to have affected the amounts. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' INTRODUCTION SECTION Notable revenue changes as shown on the preceding spreadsheet include: • Property Tax revenues increased significantly in FY 2017/18,as explained previously. The budgeted amount reflects a conservative growth increase of 3.25%on secured property tax and VLF in-lieu property tax,plus the additional 20% of remaining TEA funding, less the ERAF funding stream. Transfer Tax is budgeted lower than current year receipts,while the remaining taxes are budgeted at current year levels. Altogether, this provides a conservative budget increase of 1.75%. • Sales Tax revenues declined in FY 2017/18 due to several business closures. The budgeted amount reflects this lower amount as the new base,with a slight increase in growth for FY 2018/19. • Transient Occupancy Tax(TOT)continues to bring steadily higher revenues. The budgeted amount is under the prior year's estimate to mitigate the gap if the economy begins to stall. • Business & Other Taxes show a notable increase. This is attributable to an increase in Construction Tax revenues, which is working in conjunction with the increase in development related fees — under Fees, Licenses,&Permits and Charge for Services revenues. • Fees Licenses, and Permits reflects an uptick in development fees, with encroachment permits contributing a large increase due last year's change in fee structure. The"on"election year filing fees will also contribute to the increase. • The decrease in Charge for Services revenue comes mostly from a budgeted$100,000 decrease in Recreation Fees to reflect the current lower revenue trend,and a conservative$50,000 decrease in development fees as this revenue stream is more volatile and reactive to economic hesitations. • Interest is budgeted higher to reflect the expected continuance of rising interest rates. The trajectory growth was tempered somewhat by the expectation of large payments going out for a couple of large CIP projects during the course of the year. • The remainder of the budgeted revenues reflect status quo or modest increases. As the economy continues to be strong,total budgeted revenues are significantly above the prior year's budget,and even slightly above the prior year's total revenues. EXPENDITURES The City's General Fund expenditure schedule on the following page provides a high-level summary. The FY 2018/19 budget is in the darker brown far right column,the FY 2017/18 Adjusted Budget and Actual Expenditures are the two lighter brown columns to the immediate left, and actual expenditures for the three prior fiscal years are in the first three unshaded columns of numbers. In the FY 2018/19 budget, salaries and benefits account for 38.3%of budgeted expenditures. The Sheriff's contract follows with 27.0% of the budget. Internal Service Fund charges account for 12.9% and represents the City's reimbursement for support services and fixed asset and infrastructure replacement costs. This ranges from insurance payments to Vehicle&Equipment replacement allocations,to Facility Maintenance charges. These expenditures are reflected as revenues in the Internal Service Funds.Consultant and Contract Services comprise 10.3%,and represents the compilation of many separate contract services,from attorney services to traffic engineering,to janitorial services. For comparison purposes,it is useful to understand the budget as originally proposed,is based on the estimated prior year's year-end actuals and projected growth or decline for the next fiscal year. The prior year's adjusted budget (adopted budget plus Council approved changes)provides the expenditure plan—and in total,represents the spending authority. In certain areas,such as Salary&Benefits,the comparison against the budget year provides a more useful assessment, as actual expenditures can differ significantly if vacancies occur during the year. Additionally,contingent funding is included in the budget for termination or vacation pay-out amounts,which may or may not be utilized. This built-in contingency results in higher budgeted salary and benefits than year-end actuals. The unused funding contributes to year-end net operations. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 INTRODUCTION SECTION GENERAL FUND EXPENDITURES & TRANSFERS OUT FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2017/18 2018/19 General Fund Expenditures Actuals Actuals Actuals Adjusted Actuals Adopted Salary&Benefits $ 6,484,653 6,814,803 7,171,061 7,801,146 7,264,949 8,368,212 UAL Payment 3,294,619 500,000 500,000 750,000 750,000 1,050,000 Materials &Supplies 195,949 207,649 248,600 339,090 246,785 340,770 Fees &Charges 732,387 835,636 939,859 854,840 788,811 950,634 Consultant&Contract Svs 1,966,367 2,115,325 2,322,212 2,297,280 2,034,666 2,506,280 Sheriff Services 4,611,024 4,973,080 5,176,515 5,319,341 5,319,341 5,680,745 Meetings,Events &Training 73,668 59,431 87,606 145,800 105,621 161,290 Community Grants &Event,, 162,516 202,525 222,127 252,751 233,336 285,429 Operating Grant Expenditux - 34,762 - - - - Fixed Assets 35,343 - 20,000 19,785 20,000 Internal Services Charges 2,325,823 2,455,758 2,535,472 2,626,497 2,626,497 2,591,332 Total Expenditures $19,882,349 $18,198,969 $19,203,452 $20,406,745 $19,389,791 $21,954,691 Streets CIP 662,753 1,099,000 1,305,000 1,319,000 1,319,000 832,000 Park&Trails CIP 443,445 295,000 75,000 420,000 420,000 100,000 Facilities CIP 339,900 233,896 190,648 - - 288,000 Admin&Technology CIP 120,000 265,000 50,000 133,909 133,909 50,000 CIP Reserve Transfers $ 1,566,098 $ 1,892,896 $ 1,620,648 $ 1,872,909 $ 1,872,909 $ 1,270,000 Developmt Reserve Trans1 - 60,000 - - - - General Fund Transfers Annual Facilities CIP 100,000 - Transfer to Street CIP - 64,760 Total General Fund Transfe $ 100,000 $ 64,760 $ $ - $ - $ Total Transfers Out 1,666,098 2,017,656 1,620,648 1,872,909 1,872,909 1,270,000 Total Expenditure &Transf $21,548,447 $20,216,625 $20,824,100 $22,279,654 $21,262,700 $23,224,691 Net Operation MEL 1,703,415 $ 2,648,344 $ 1,764 3 $ 3,869,760 $ 391,885 Overall, General Fund budgeted expenditures reflect a 7.6% increase from the prior year budget. Four components make up more than 90% of the $1,548,000 budget increase. Salary& Benefits increases ($567,000) reflect salary survey adjustments,cost of living adjustments(COLA),step increases,promotions,and a couple of position changes. Salary increases are explained in more detail in the following section. The UAL payment increase ($300,000), represents a$250,000 increase in the Tier I payment, and$50,000 of additional funding for the payoff of the Tier II and Tier III UAL's that accumulated in the last couple of years. Sheriff Services increases($361,000)reflect salary, benefit and overhead increases,a step up in the County's UAL required contribution payment,and the addition of the Silicon Valley Regional Interoperability Authority(SVRIA). Other service increases ($209,000) include increases in environmental, GIS,and landscaping services, software implementation,city communications, and assorted other services. Salary&Benefits For Salary and Benefits, the General Fund budget grew by $567,000 for FY 2018/19. Salary increases support the Recreation Department's reclassification of the Recreation Supervisor position to a Recreation Manager position,the Community Development Department's reclassification of the vacant Sr. Planner to a Planner I position and vacant Plan Check Engineer position to a Building Official,and the Public Works'promotion of an Associate Engineer to a Sr. Engineer. Additional salary and benefit increases stem from cost-of-living-adjustments (COLA), step and longevity increases,and salary survey adjustments. Benefit increases support medical insurance premium and pension cost increases. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION FTE Positions—Saratoga's practice is to keep employee count stagnant,utilizing contract staff and consultant services to address minor ebbs and flows in the workload and economy. On occasion,significant growth in workload demands force a reconsideration of staffing assignments, and personnel count. For FY 2018/19,vacancies in a few positions provided the opportunity to address workload needs through position changes. Temporary staff positions will remain close to prior year's levels; only a couple of short-term part-time intern positions were added in support of governmental workforce initiatives. 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 for all situations(i.e.for program development and oversight duties) contracting out allows the City to increase and decrease service levels as needed—ciher 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 other downside is that the required skills are not always available, such as Building Inspector backfill is expected to be scarce due to Northern California's post-wildfire rebuilding demand. The City works diligently to manage costs and service levels,thereby controlling financial impacts. Unfunded Accrued Liabilities-Ca1PERS'2014 Actuarial Report modified the way Ca1PERS assesses the employer's portion of the pension benefit contribution. Ca1PERS separated the normal cost (the actual cost attributable to the pension cost under current assumptions) from the unfunded liability, which was the result of all the prior years' accumulated investment gains, losses, and assumption changes. Ca1PERS 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, Ca1PERS presented a payment plan for employers to fund the liability: Agencies would pay the UAL off over a 30 year period. Payments were defined as annual dollar amounts rather than as a percentages of payroll, and they would increase for the first five years, stay level for twenty years, and then decrease in the final five years. The UAL represents a debt the City owes under their contract with Ca1PERS to provide pension benefits to employees. The amount owed fluctuates, as it adjusts for investment returns and actuarial assumptions. Each year,this liability is reassessed. Unfunded liabilities increase if factors decrease the value of assets held, or increase the assumed liability. Unfunded liabilities decrease when investments earn in excess of the discount rate, and by payments made by the City toward the debt. A new UAL base amount is added to reflects the difference between investment returns and the asset amounts required at the new date in time. Under Ca1PERS initial plan,the liability's 30-year payment plan would in effect double the total cost of the liability. To reduce the total cost,the City Council decided to make an immediate $3.3 million payment toward the Ca1PERS Employers Unfunded Accrued Liability. This reduced the amount of liability outstanding and the overall cost. This decision saved the City about$3.6 million in discount rate interest. In addition,the City Council reduced the 30 year payment schedule down to 15 years with a plan to pay a total of$500,000 per year toward the outstanding UAL instead of the employer's required debt contribution. In FYs 2015/16 and 2016/17,$500,000 payments were made as planned. Then,Ca1PERS changed the playing field. A new actuarial study in 2014 identified many assumptions,such as life expectancy,length of service,retirement age, future salary increases, and investment returns were in need of adjustment. These subsequent assumption modifications led to an additional pension liability base called Assumption Changes in the 6/30/2014 actuarial report. By 2015, Ca1PERS determined that the 30-year rolling amortization repayment plan that Ca1PERS staff had just implemented would not bring the plan to a sustainable level quickly enough. As a quick fix to this situation, the Ca1PERS Board changed the rate smoothing amortization periods for experience gains and losses from a rolling 30 year period to a fixed 30-year period, and determined actuarial assumptions would be amortized separately over a shorter,20 year period. Additionally,market rates would be used rather than actuarial rates. And most significantly, the 7.5%discount rate(similar to a Return on Investment rate)was too high. Ca1PERS determined the discount rate should be lowered to 7%in the short-term for the pension plans to remain sustainable,and to 6.5%over the long-term. The 7% rate would be implemented over seven years. Then, when this reduction implementation change was CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 0 INTRODUCTION SECTION complete,PERS shall continue to make small discount rate decreases when economic conditions were right as part of the process to reduce the rate down to 6.5%over a long-term timeframe. In FY 2017/18, CalPERS determined further changes were needed to address concerns of negative amortization, actuarial guidance, and intergenerational equity. The fiscal impact of CalPERS present repayment policy was expected to be too slow. Hence,in February 2018,the CalPERS Board adopted changes in the Actuarial Amortization Policy to be effective with the June 30,2019 Actuarial Valuation—for agency contributions beginning in fiscal year 2021/22. A CalPERS April 26, 2018 Circular Letter states the changes to the policy that will impact required contribution amounts in the future are: 1. Reduced period over which actuarial gains and losses are amortized,from 30 years to 20 years. This change applies only to new gains/losses established on or after June 30,2019. 2. Level Dollar Amortization payments for all UAL bases throughout the amortization period. This change applies only to new UAL bases established on or after June 30,2019. 3. Elimination of five-year ramp-up or ramp-down on UAL bases attributable to assumption changes and non- investment gains/losses established on or after June 30,2019. 4. Elimination of five-year ramp-down on investment gains/losses established on or after June 30, 2019. The five-year ramp up period will continue. Near term,the impact to Saratoga's annual employer contributions from the policy changes is expected to be minimal as Saratoga proactively pays down at a pace that effectively eliminates negative amortization. Long-term,the impact will depend on investment gains or losses,or future changes to assumption policies. The following CalPERS chart illustrates both the impact the discount rate changes are expected to bring and Saratoga's payment policy effectiveness. The three color shades represent the discount rate's three-step phase-in over a five-year period,meaning the third step is fully phased-in as of year 7. The flat bar represents Saratoga's payment plan strategy. Required Contribution Increase Impact for Three Added Bases Vs. Saratoga's Accelerated Payment (blue line) 7-Year Ramp-Up Period $1,000,000 $750,000 $500,000 �.■���IInk, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Amortization Year(Starting 613012016) ■Ramp 1-7 375%Discount Rate Added 65012016 *Ramp 2-7 250%Discount Rate Added 6130/2017 r]Ramp 3-7 000%Discount Rate Added 6130018 7-Year Ramp-Up Period CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION For reference, FY 2018/19 is the third year of implementation. The blue line represents Saratoga's accelerated payment scheduled to reduce the UAL's overall cost and payment length, and to stabilize payments. A cautionary note; subsequent assumption changes and investment returns may impact this payment plan strategy in future years. As the chart illustrates, the lowering of the discount rate will be phased-in with a three-step implementation. The impact of this change to Saratoga is that employer overall pension costs will increase by about 40%. Saratoga's UAL liability is expected to increase about 30-40% , and current year payroll based contributions will also increase. The added costs stem from the sustainability changes that lower the discount rate and shorten the payment recovery period to 20 years. Although liability details were not yet fully provided, Council addressed this impact immediately by increasing the annual UAL payment to Ca1PERS up to $750,000 in FY 2017/18, thereby exceeding the required contribution of $189,000 by$560,000. Now, in FY 2018/19, Council has again increased the UAL contribution, up to $1,000,000 when the Tier I required contribution is only $328,000. This $672,000 excess payment will help to reduce future annual required contribution amounts and the total overall cost of the pension liability. Operational Expenditures Budgeted FY 2018/19 General Fund operational expenditures reflect a number of increases in a fairly status quo operational plan. More than one-half of the $1.5 million budgeted increase is attributable to an increase in salary, benefits,and UAL contributions. Another$360,000 comes from the Public Safety cost increase. Other operational expenditures account for $340,000 of the increase. Expenditure variations are explained in detail in the individual department and program sections in the Departmental Budgets section beginning on page 149,but for perspective, a short summary of some of the operational expenditure changes are: • The November 2018 City Council three-seat election will require approximately $65,000 of funding for election expenses. Election expenses occur every other year. • Increases in City communications and outreach efforts will require an additional $40,000 for postcard and brochure printing and mailing,social media,translation services,and event funding. • $30,000 of funding was added for a GIS Consultant and software license fees. GIS data is critical information needed by both Community Development and Public Works departments, and the City no longer has staff in-house who can provide the desired services,or expand the breadth of services. • Efforts to provide better customer service resulted in the elimination of credit card fees. This requires $30,000 of additional budget funding for the expected increase in usage. • Solid waste and Clean Water program environmental costs continue to increase as with the cost of consultants. Past experiences prompted an additional $10,000 be budgeted for emergency environmental clean-up on a contingency basis. • $20,000 was added for additional community service support, and another $20,000 for community event funding to bring Saratogans together for both social and public safety learning events. Public Safety Public safety continues to be a top priority for City Council members,residents,and the Santa Clara County Office of the Sheriff. The City has contracted with the Sheriff's Office for public safety services since the City was incorporated in 1956.This partnership has been rewarding in multiple ways. As a small city, Saratoga saves millions of dollars a year by purchasing public safety services that can be provided at a lower overall cost,rather than employing an in- house police department. The Santa Clara County Sheriff is a large organization with 1300 sworn officers,with the ability to delegate resources to its contract cities on an as-needed basis. This provides flexibility for those times where more resources are needed, while keeping services minimal during the majority of the time. The Sheriffs Office provides all the services that an internal police department would—patrol,traffic enforcement, and investigations— but with the added benefit of crime analysts,technology services,public outreach,and other valuable law enforcement services. In FY 2018/19,the Sheriffs Office contract will provide 20,060 general law enforcement service hours, 4,195 traffic enforcement hours,2,400 investigative hours,340 reserve activity hours,and a full-time School Resources Officer. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION For FY 2018/19, the City will see a 6.5% cost increase from the prior year. The Sheriff Contract accounts for just 26.1%of the City's General Fund budget. This compares favorably to other Santa Clara County municipalities that dedicate upwards of 40%or more of their General Fund budgets for police services. In addition,the cost for Sheriff Services per resident is the lowest,or near the lowest,of all the Santa Clara County cities each year. Not only does the City see considerable cost savings through its agreement with the Santa Clara County Office of the Sheriff,crime rates remain low compared with surrounding municipalities. In part 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. A broader communication reach alerts deputies and crime analysts to targeted areas,criminal patterns,and crime activity connections and suspects. Year after year, Saratoga is recognized for its low crime rate at both State and National levels from various public safety organizations. The impacts of the upcoming UAL changes are expected to affect the cost of the Sheriff's Office in greater proportions due to their enhanced safety plans. Future cost increases are expected to be painful;a rough estimate puts Saratoga's annual cost at$1.5 Million higher in just five years. Once more detailed information is known,the financial impacts will be brought to Council for review. Fixed Assets Only one new fixed asset is planned for the FY 2018/19 General Fund budget. This is the $20,000 Utility Shed building at Quarry Park. New fixed assets are typically funded through a department's operating budget. Once purchased, funding for the replacement of the fixed assets are charged to the "owners" over the asset's lifetime, to build up accumulated funding for its eventual replacement in the applicable replacement fund: the IT Replacement Fund,the Vehicle&Equipment Replacement Fund,or the Furniture,Fixtures&Equipment Replacement Fund. 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 allocated back to operational programs based on usage to more accurately determine cost of services. These charges are expenses in the General Fund programs,and revenues in the Internal Service Funds. The ISF include two Insurance funds: Risk Management and Workers Compensation, four Service/Support funds: Office Support,IT Services,Vehicle&Equipment Maintenance,and Facility Maintenance Funds,and the three Asset Replacement funds noted above. With the exception of the Office Support Fund, the service-based ISF funds have staff assigned to the programs. Ongoing increases in salary&benefits,as well as all other operational costs contribute to increasing expenditures in the funds each year. With the City's reserve policies calling for ISF reserves to be funded at a working capital levels, the funds may require service charge-back adjustments to right-size the fund balances. At this time,most ISF funds fulfill the working capital requirement,and current year funding levels are expected to reflect operational expenses. General Fund Transfers Out General Fund Transfers are generally limited to moving money from the General Fund into the Capital Improvement Program. Typically,this money comes from prior year General Fund net operations that was moved into the Capital Project Reserve. In FY 2018/19,$1.27 million of Capital Improvement Project Reserve funds will move into the CIP. With the exception of transferring the General Fund Capital Project Reserve funds,the City has a practice of receiving dedicated revenues directly into the capital improvement project fund in which it is used. This practice provides better audit trails and transparency of City finances. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION CAPITAL BUDGET HIGHLIGHTS STREETS PROGRAM Prospect Road Improvements This$7.3 million project will fund improvements along the Prospect Road corridor. Improvements will include increased access for pedestrians and bicyclists through additional roadway medians, sidewalks, ADA ramps, and bicycle loops at intersections. This project will improve safety by physically reducing the width of the road,channeling vehicles into defined "-- turn lanes, reducing the threat of vehicles crossing the center lane, and creating safer pedestrian crossings. Funding for this project will come from a$5.3 million OBAG grant, Gas Tax revenues of$1.1 million and CIP reserves of$1 million. Fruitvale Ave/Allendale Ave Intersection Improvements This $250,000 project will fund improvements to the Fruitvale Avenue and Allendale Avenue intersection. Improvements to include the removal of the right-turn slip lane nearest the middle school,and the replacement of the existing traffic signals. This project will improve safety by increasing pedestrian visibility and reducing vehicle speeds creating safer pedestrian crossings. A$250,000 transfer from the CIP Reserve will fund this project. PARKS AND TRAILS PROGRAM Saratoga Village to Quarry Park Walkway This$150,000 project will fund the construction of a pedestrian walkway from Saratoga Village to Quarry Park through Hakone Gardens. The connection will help to bring foot traffic to Saratoga Village and will provide a safer path of travel along Highway 9 between the Village and Quarry Park. The path will also serve as a critical starting point for the Saratoga-to-the-Sea trail. A$50,000 transfer from the CIP Reserve and $100,000 from Park Development fees to provide the funding this project. Quito Rd/Pollard Rd Open Space Improvements This$75,000 project will create a new park by improving the open space area located at the corner of Quito Road and Pollard Road.Beautification improvements will include a meditation garden, draught tolerant and/or native species landscaping, pathway enhancements, and irrigation. A $75,000 transfer from Park Development fees will fund this project. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION Park& Trail Safety Improvements This$43,000 project will fund safety improvements at several city parks and Parker Ranch Trail. Improvements will include installation of security lighting, fencing, stairs and bollards. This project will improve safety by providing additional lighting near playgrounds, barriers to separate park users and vehicle traffic, and stairs to make the trail easier to use. A $43,000 transfer from Park Development fees will fund this prof ect. FACILITY IMPROVEMENT PROGRAM Community Center Stage Renovation This $90,000 will fund the renovation of the stage located in the Community Center's Multi-Purpose Room. Improvements will include the installation of an accessible stairway,ramp, and new flooring. Upon ~ completion, the renovated stage will improve safety and provide accessibility for wheelchair bound or mobile-challenged attendees. A $90,000 transfer from CIP Risk Management will fund this project. Senior Center Entrance Remodel This$50,000 project will fund the renovation of the exterior entrance and walkways to the Saratoga Senior Center. Renovations will include improvements to the building's fagade, landscaping, signage, and enhancements to the external walkways. Upon completion, the remodel will provide a more identifiable entryway to the Saratoga Senior Center. A$50,000 transfer from the CIP Reserve will fund this project. ADMINISTRATIVE &TECHNOLOGY PROGRAM Accessibility Assessment This$75,000 project will assess City parking areas and traffic signals for compliance with accessibility requirements. The assessment will also identify implementation steps to take in order for the City to be in compliance. A $75,000 transfer from CIP Risk Management will fund this project. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION s GOVERNMENT FINANCE OFFICERS ASSOCIATION istin wi .Dshed Budget Presentation Award PRESENTED TO City of Saratoga California For the Fiscal Year Beginning July 1, 2017 Executive Director CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION HISTORY AND CULTURE OF SARATOGA L ocated in the foothills of the Santa Cruz Mountains, - approximately 26 miles east of the Pacific Coast, 10 ' e Berkeley contra '�a2�"°° Oakland Costa miles southwest of San Jose,and 50 miles south of San Francisco,the City of Saratoga runs along the western edge of I oar; 'San �SLeandroan Litt Santa Clara County. The City of Saratoga is an attractive, Francisco 'gi ; 101 HAn d 4lameda LI1VerR10rE affluent residential community with a small-town vibe in thea� w.acit ca Francisco midst of the world famous Silicon Valley. The Village \ ; ¢ San flon' .Sart Saratoga's historic downtown district, is filled with uniquePO + Bruno AMfe-% rernBnt shops and fine dining establishments. It is the gateway to ' /} S. n Palo several distinctive destinations: Carla§ Ito Milpitas caiilomia East 4' coasrai Sw niyv I Foothills • Hakone Gardens, the oldest Japanese-style residential Natrona) Monism enf gardens in the Western Hemisphere. 94 35 S n ao Die • Villa Montalvo, former home of Senator James Duval Saratoga .amp, 11 Phelan is host to an art gallery, 23EI an artist-in-residence Santa �laia program,concert series,and 175 acres of park grounds and H�dn I.I ate, aen hiking trails. Lomcn ,I g manta • The Mountain Wine a popular winery and event venue �'� p P 'J Capitols 152 that is host to weddings, wine tastings, and world class Santa Cruz Watsonv concerts in the spring and summer. a :rr:rr San d6 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 Y+; at the western base of the Sierra mountains,a hundred and 1 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 �y improve its access by building a road to the site. To r _ 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' INTRODUCTION SECTION 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 J C - 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. a u -$ 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. z 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 .lt lingered through succeeding years, even as agriculture became the dominant industry in Saratoga and the Santa ...Y Clara Valley. And while Campbell's Gap, Tollgate, x McCartysville, and Bank Mills were at various times used as settlement names, the community eventually settled on`Saratoga'in 1865. In the latter part of the 1800's,the area's fertile soil and " available land developed into another industry - agriculture. Apricots, cherries and French prunes were particularly well-suited to Saratoga's soil and climate. Starting in the late 1860's,the planting of deciduous fruit trees increased until it became the chief means of livelihood for the whole region. During the late 1880's,the hillsides were found to be amenable to viticulture and many wineries were established. In 1890, Saratoga became the home of the world-renowned Paul Masson Winery. Convinced that the rich California soil could produce grapes for champagnes comparable to those of France, the French immigrant Masson brought grape cuttings from his native land to plant on the hillsides. Over time, Saratoga had developed into a pleasant village i and became the trading center for the surrounding vineyards and fruit-growing farms. During the early 1900's,Saratoga t 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 INTRODUCTION SECTION 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 T orchards some although vineyards and a few g — ° scattered orchards do remain as a reminder of the .= Y 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 31,435(January 1,2018)known .1 for its excellent schools and prestigious neighborhoods. , r The community's historic downtown district, known as "The Village", has distinctive dining, unique shops, and numerous buildings 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 with very little retail or commercial land use,the City government receives the majority of its revenue from Property Tax assessments. Further,the City's share of property tax receipts had, through the end of FY 2014/15,been only 5.45%of the 1%assessment Saratoga property owners pay,rather than the minimum 7% allocation for"low tax cities"prescribed under State law. After years of negotiation,the State legislature revised the municipal code that reduced property tax revenues for three cities in Santa Clara County. Hence, over a five-year period beginning in FY 2015/16, Saratoga is to receive incremental increases until reaching the minimum 7% share in FY 2019/20. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION These revenue restraints have kept staffing low for a city this size,severely limiting the services the City can provide to its residents. Many services are provided on contract,with service levels fluctuating over the years,in accordance with available funding. Additionally, 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, Santa Clara County Fire receives a large portion of the tax assessment(about I I% of the 1%)to provide fire services,while the city pays the Santa Clara County Sheriffs Office for public safety under a service contract. Animal control services are contracted for with the City of San Jose, and recreation services are provided in part by Los Gatos-Saratoga Recreation District, with the City providing services for the remainder of the community. Further, Saratoga is served by two different sanitation districts: Cupertino Sanitation and West Valley Sanitation, and numerous school districts that cross city lines with our neighboring cities. Saratoga's 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION CITY COMMISSIONS & COMMITTEES Arts Ad Hoc Committee The Public Art Committee is comprised of two members of the City Council and was formed in 2016 to advise the City Council on opportunities for public art in Saratoga. The Committee meets as needed. Finance Committee The Finance Committee (previously termed the Finance Advisory Committee and the Finance Commission) was originally formed in 1981 to advise the City Council on financial matters pertaining to the governing of the City, as well as on the use of fiscal resources and the development of technology for the City. In 2007, the Council reconstituted the Finance Commission as a Finance Committee to review financial matters with the City's Administrative Services Director in preparation for the City Council meetings. In FY 2016/17, the Council restructured the Committee as a "Committee of the Whole" to allow all Council Members to attend a Finance Committee and comment if they so desire,although only the two appointed members may vote on recommendations and decisions. The two appointed Council members each serve one year terms of office;meetings are held monthly or on as as-needed basis. Heritage Preservation Commission The Heritage Preservation Commission, comprised of seven (7) members, functions as a liaison working in conjunction with the Council,the Planning Commission,and the agencies and departments of the City to implement the City's Heritage Preservation Ordinance. The Commission's scope includes property surveys within the boundaries of the City of Saratoga for the purpose of establishing an official inventory of heritage resources and recommending to the City Council specific proposals for designation as a historic landmark, heritage lane or historic district. One member is nominated by the Saratoga Historical Foundation and two members must be trained and experienced in the field of construction and structural rehabilitation,such as a licensed architect,engineer,contractor or urban planner. Library Commission The five(5)member Library Commission provides counsel and recommendations on library policies,budgets,plans and procedures to the City Council, City staff, the Santa Clara County Library staff, and the Saratoga Library Supervisor. The Library Commission has no administrative authority over the library's operations but does participate in the general planning of the library operation and library-related programs and policies. One member is nominated by the City of Monte Sereno. Parks and Recreation Commission The Parks and Recreation Commission, consisting of five(5)members, advises the Council on matters that relate to parks and recreation. Principally, the commission serves as a conduit between the public and the Council, assesses public input,collects information,and makes recommendations to the Saratoga City Council. Pedestrian,Equestrian,and Bicycle Trails Advisory Committee It is the mission of the Pedestrian,Equestrian,and Bicycle Trails Advisory Committee to advise the city regarding the planning,acquisition,and development of trails and sidewalks and to maintain the trails network to enhance the quality of life in Saratoga. The number of committee members vary over time,depending on interest. Planning Commission The seven(7)member Planning Commission advises Council on land use matters such as the General Plan and specific plans,zoning and subdivisions. The Commission plans for the future orderly physical development of the City and informs and educates the public on current land use and urban planning issues. In many areas the Planning Commission also acts as a legislative body in making determinations within the framework of applicable State laws and City ordinances.Ultimate decisions on land use reside with the City Council. Members are required by State law to file an annual statement of economic interests. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION Public Safety Task Force The City Council formed a five (5)-member Public Safety Task Force in 2016 to develop recommendations for enhancing public safety for the City Council to consider. The members of the Task Force were each nominated by a member of the City Council. and will serve in an advisory capacity until November 2016. The Task Force meets on the fourth Thursday of each month. Traffic Safety Commission The Traffic Safety Commission investigates, reviews, and analyzes traffic safety issues raised by the Community members and Public Safety Agencies. The seven(7)members meet on a bi-monthly basis to provide a venue for the public to express concerns regarding traffic safety matters. The Commission makes recommendations to the City regarding traffic safety. Youth Commission The Youth Commission is comprised of eleven(11)middle and high school students appointed by the City Council for two-year terms. The rotating appointments ensure both first and second year members are on the commission. The Youth Commissioners participate in community activities and serve as a liaison between the teen community and the City Council. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 0i S A Rq�.oC 1956 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION STRATEGIC GOALS & OBJECTIVES CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 0i S A Rq�.oC 1956 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 INTRODUCTION SECTION BUDGET & FINANCIAL POLICY INFORMATION CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION BUDGET PROCESS OVERVIEW Government budgets and accounting uses a mix of The City of Saratoga adopts an annual accounting methods. A hybrid cash and accrual Operating and Capital Budget and an annual budget accounting system known as`Modified Accrual Basis' update of the five-year Capital Improvement Plan. recognizes revenues when measurable and available. The budgets are prepared with detail revenue and expenditure appropriations for the fiscal year The City considers all revenues reported in the beginning July Pt and ending June 30t'', and is governmental funds to be available if the revenues are presented as a summary level budget document. collected within 45 days after fiscal year-end. Budget schedules are prepared on the same basis as the Licenses, property taxes and taxpayer assessed tax City's financial statements, and in accordance with revenues (e.g., franchise taxes, sales taxes, and generally accepted accounting principles(GAAP). transient occupancy tax)are all considered susceptible to accrual and so are recognized as revenues in the BUDGET PURPOSE period earned/collected. Revenues from grants and The Operating and Capital Summary Budget and the donations are recognized in the fiscal year in which all Capital Improvement Plan serve as the City's financial eligibility requirements have been satisfied. plan,as well as a policy document,a communications Expenditures are recorded when the liability is tool, and an operations guide. Developed with an incurred. Claims,judgments, compensated absences, emphasis on long term financial stewardship, and principal and interest on general long-term debt sustainability, service delivery, and program are recognized as expenditures to the extent they have management, a fundamental purpose of these matured. documents is to provide a linkage between the services and projects the City intends to accomplish, and the The Modified Accrual Basis is used for governmental resources committed to get the work done. The format types of funds,while the full accrual basis accounting of the budget facilitates this linkage by clearly method is used for proprietary funds. Governmental identifying program purpose, key projects, and Funds consist of the General Fund, Special Revenue workplan goals,in relation to revenue and expenditure Funds,Debt Service Funds,and Capital Project Funds. appropriations. Under this basis,revenues are estimated for the period if they are susceptible to accrual, e.g. amounts can be BASIS OF BUDGETING AND ACCOUNTING determined and will be collected within the current period. Principal and interest on general long-term Developed on a program basis with fund level debt are budgeted as expenditures when due,whereas authority,the operating budget represents services and other expenditures are budgeted for liabilities functions provided by the City in alignment with the expected to be incurred during the current period. resources allocated during the fiscal year. The Capital Budget is funded and defined by its' approved Proprietary fund budgets are adopted using the full projects, with ongoing or incomplete projects re- accrual basis of accounting whereby revenue budget appropriated into the following fiscal year. projections are developed recognizing revenues expected to be earned during the period, and Basis of Accounting and Budget refers to the timing expenditures are developed for expenses anticipated to factor concept in recognizing transactions. This basis be incurred in the fiscal year. The City maintains one is a key component of the overall financial system type of proprietary fund:Internal Service Funds. because the budget determines the accounting system. For example, if the budget anticipates revenues on a While not currently used in Saratoga,Fiduciary Funds cash basis, the accounting system must record only are also budgeted using the modified accrual basis. cash revenues as receipts. If the budget uses an accrual This includes Trust Funds,which are subject to trust basis, accounting must do likewise. This consistency agreement guidelines,and Agency Funds,which are is also reflected in the City's Comprehensive Annual held in a custodial capacity involving only the receipt, Financial Report (CAFR), the State Controller's temporary investment,and remittance of resources. Annual Cities Report,and all other report documents. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION SUMMARY OF BUDGET DEVELOPMENT BUDGET ADOPTION The City develops budgets with a team-based The City Council reviews the proposed Operating and budgeting approach. The City Manager and Capital Summary Budget, and the Capital Administrative Services Director guides the process Improvement Plan for the five-year period in a public through budget development; however program hearing at the second Council meeting in May. Notice budgets and workplans are developed with each of the hearing is published in a local newspaper at least department's director or program manager's oversight ten days prior to the Council's public hearing date. and expertise. This approach allows for hands-on The public is invited to participate and copies of the planning and creates a clear understanding for both proposed budgets are available for review on the management and staff of a program's goals and City's website,in the City Manager's office and at the functions to be accomplished in the next budget year. budget hearing. THE DEVELOPMENT PROCESS Under requirements established in Section 65401 of Typically,both the Operating and Capital Budget and the State Government Code, the City's Planning Capital Improvement Plan(CIP) annual development Commission also reviews the proposed Capital processes begin in early January as the City Manager Improvement Plan and reports back to the City works with the City Council to develop and refine Council as to the conformity of the plan with the City's initiatives and directives for the upcoming budget Adopted General Plan. year. The Five-Year financial forecast is developed concurrently and brought to the annual Council Final council-directed revisions to the proposed Retreat for Council review. This forecast provides an budget are made and the budget documents are overview of service level operations and helps to guide resubmitted to the Council for adoption, again in a publicized public hearing prior to the beginning of the discussion on upcoming budget direction. The CIP is also reviewed during this time to determine funding the fiscal year. capabilities, project priorities, and to refine project workplans. Although the CIP Budget is a stand-alone Section 2-20.050(i) of Saratoga's City Code requires the City Manager to prepare and submit an annual body of work,CIP projects impact the City's ongoing operations and are therefore incorporated into the budget to the City Council. This is accomplished in June, when the Operating and Capital Summary Budget document final proposed budget is formally through the resulting financial appropriations and submitted to the Council in the subsequent public service level requirements. hearing. The approved resolutions to adopt the CIP and operating budgets and the appropriation limitation In February,the budget preparation process begins in (Gann Limit)follow later in this section. earnest. Budget assumptions,directives and initiatives are provided to set the City's overall objectives and BUDGET AMENDMENTS goals. Over the next several months, staff identifies During the course of the fiscal year, economic and and analyzes program revenue and expenditure workplan changes or unanticipated needs may projections in coordination with Finance/Budget staff necessitate adjustments to the adopted budgets. The and City management. Capital improvement projects City Manager is authorized to transfer appropriations are assessed and refined, and CIP funding and between categories, departments, projects, and appropriation requirements are finalized. programs within a fund in the adopted Operating Budget, whereas the City Council holds the authority Through rounds of budget briefings and revisions, for Operating Budget appropriation increases and operational and capital workplans are reviewed and decreases, and transfers between funds, and for both compiled, and staff finalizes the proposed program scope and funding changes to capital projects in the and capital budgets. Financial summary information Capital Budget. 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION BUDGET CALENDAR December 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 January Budget Office to prepare Mid-Year Budget Report and Five-Year Financial Forecast for Council review at annual retreat For Operating Budget: • Budget Office to provide budget information to staff on budget assumptions,directives,initiatives,and goals • Budget Office and Program Managers to prepare Internal Service and Equipment Replacement Fund analyses and schedules,and finalize internal service rates • Budget Office to prepare operating budget worksheets for updates, including departmental/program narratives, staffing and financial worksheets,asset and staffing requests For Capital Budget: • Budget Office to prepare updated five-year CIP project worksheets February Budget Office and departments to review current User Fee Schedule for appropriate changes in preparation of annual update process For Operating Budget: • Budget Office to finalize Internal Service Fund program workplans • Budget Office to prepare budget worksheets for departments, including staffing and internal service program costs • Departments to prepare draft revenue and expenditure workplans For Capital Budget: • Project Managers to prepare funding,scope of work,and cost estimates for new proposed projects March 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 • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION April 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 May 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 June 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 July/ Finance to: August/ • Finalize prior fiscal year revenue and expenditures September • 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 • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 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 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 Special Revenue Funds are used to account for revenues that are legally restricted to expenditures for specific purposes. The City of Saratoga has the following type of Special Revenue Funds: • Landscape&Lighting District Funds—Saratoga currently has 29 special assessment districts which voted to have the City provide oversight and maintenance of trees,landscaping,irrigation systems,and lighting systems in neighborhood and commercial areas. Separate funds are established to account for each district. Debt Service Funds 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION Capital Project Funds: Capital Project Funds are used to account for the acquisition,construction,and improvement of capital infrastructure. The City budgets and accounts for capital projects in: • Capital Project Funds — established to provide resources for capital projects funded from accumulated reserves and designated capital revenues. • Development Impact Funds—accounts for revenues restricted for specific capital project uses. • Grant Project Funds—budgets and accounts for projects funded in whole or in part by grant revenues. • Gas Tax Fund — budgets and accounts for revenues and expenditures pertaining to the maintenance and construction of City Streets. PROPRIETARY FUNDS Proprietary funds are structured to impose fees or charges upon those who use their services. There are two classifications of proprietary funds: Enterprise Funds and Internal Service Funds: • Enterprise Funds—are used to account for activities that are operated in a manner similar to a private business enterprise,where the cost of the goods are to be financed or recovered primarily through external user charges. The City of Saratoga does not currently provide services or activities(e.g. golf course or utility service)which would be accounted for through Enterprise Funds. • Internal Service Funds—represent services provided to internal users and functions as a cost-reimbursement device. Internal Service Funds account for operational support activities for the purpose of recovering the cost from the user,and for the user to identify its full cost of operations. Internal Service Funds Used to account for services provided to departmental programs by City-wide administered programs and staff. The City has several of these types of funds: • Liability/Risk Management Insurance Fund — Accounts for insurance premiums, self-insured portion of claims, and administrative costs associated with settling claims. Charges are allocated to programs based upon liability risk and claim occurrence history. • Worker's Compensation Insurance Fund - Accounts for insurance premiums, self-insured portion of claims, and administrative costs associated with settling claims. Charges made to operating departments are based on liability risk and claim occurrence history. • Office Support Services Fund—Photocopy equipment, postage and bulk mail meter expenses are controlled at one source point and expended to the departments as goods or services are utilized. • IT Services Fund—Information Technology Services supports the delivery of technology based services and infrastructure,including desktop support, network systems, technology upgrades and initiatives, communication systems,and associated IT equipment. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION • Vehicle & Equipment Maintenance Fund - Accounts for the cost of operating and maintaining vehicles and equipment used for service operations in various City departments. • Facility Maintenance Fund— Accounts for operational costs associated with building maintenance. Includes custodial supplies and services, maintenance and repair,utilities,and staffing costs. • Vehicle & Equipment Replacement Fund — Established to accumulate funding for the replacement of vehicles and equipment. Replacement costs are charged to departments over the asset's life span,reflective of usage. • IT Equipment Replacement Fund—Established to accumulate funding for the replacement of information technology equipment. Replacement costs are charged to departments over the asset's lifespan,reflective of usage. • Facility FFE Replacement Fund—Established to accumulate funding for the replacement of facility furniture,fixtures,and equipment. Replacement costs are charged to departments over the asset's lifespan, reflective of usage. FIDUCIARY FUNDS Fiduciary Funds are used to account for assets held by the City acting in a fiduciary capacity for other entities and individuals. Such funds are operated to carry out the specific actions of trust agreements, ordinances and other governing regulations. There are two categories of fiduciary funds,Trust and Agency. Trust Funds Trust Funds account for assets held by the City in a trustee capacity where the City oversees the use of resources in accordance with formal trust agreements. The City does not currently administer this fund type. Agency Funds Agency funds account for assets held in the capacity of an agent for individuals, governmental entities, and non-public organizations. 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION BUDGETARY FUND STRUCTURE 1wGOVEIINNIENTAL FUNDS Special Revenue Funds Debt Service Capital hnprovement Fund Plan Funds Landscape&Lighting Capital Improvement Primary Operating Fund District Funds Bond Repayment Fund Programs 1 General Fund 30 Assessment District 1 GO Bond Debt Street Imnrovements Funds 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 Faciltiv Improvements 8. City Funded CIP 9. Grant Funded CIP Admin&Technoloav 10. City Funded CIP 11. Grant Funded CIP PROPRIETARY FUNDS FIDUCIARY FUNDS Internal ServiceEnterprise Funds Funds Funds Trust Funds Agency Funds Operational andAsset None None Fiscal Agent Programs Funding Programs Insurance Funds Joint Powers Authority 1.Risk Management 1. West Valley Clean 2.Workers Compensation Water Program Operation&Maintenance 3.Office Support 4. IT Services 5.Vehicle&Equip M aint 6. Facility Maint Asset Replacement Funds 7.Veh&Equip Rep lacemt 8.IT Equip Replacemt 9.Facility FFE Replacemt CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET �' INTRODUCTION SECTION DEPARTMENT TO FUND RELATIONSHIP PROPRIETARY FIDUCIARY GOVERN MENTAL FUNDS FUNDS FUNDS General Special Capital Debt Internal DEPARTMENTS Fund Revenue Im rovement Service Service Funds Trust/ enc Council&Commissions Ci—tyManager Administrative Services Communi Development Public Works Recreation&Facilities PublicSafet Non-De artmental CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 INTRODUCTION SECTION LIST OF FUNDS GENERALFUND.........................................................................................................................................................III SPECIAL REVENUE FUNDS Landscape&Lighting Assessment District Funds(multiple)............................................................................2xx INTERNAL SERVICE FUNDS Risk Management/Liability Fund.....................................................................................................................611 Workers Compensation Fund.............................................................................................................................612 OfficeSupport Services Fund.............................................................................................................................621 Information Technology Services Fund.............................................................................................................622 Vehicle&Equipment Maintenance Fund..........................................................................................................623 FacilityMaintenance Fund.................................................................................................................................624 Vehicle&Equipment Replacement Fund..........................................................................................................631 IT Equipment Replacement Fund.......................................................................................................................632 Facility HE Replacement Fund.........................................................................................................................633 DEBT SERVICE FUNDS 2011 Series G.O.Bonds ....................................................................................................................................311 TRUST AND AGENCY FUNDS WestValley Clean Water Program.....................................................................................................................713 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 TreeFund...........................................................................................................................................................421 Park-in-Lieu Fund..............................................................................................................................................422 StreetsGrant Fund..............................................................................................................................................431 Park&Trail Grant Fund.....................................................................................................................................432 Facility Improvements Grant Fund.....................................................................................................................433 Administrative&Technology Grant Fund.........................................................................................................434 GasTax Fund ....................................................................................................................................................481 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 0 INTRODUCTION SECTION LIST OF PROGRAMS GENERAL FUND Council&Commissions CityCouncil.....................................................................................................................................................1101 Commissions....................................................................................................................................................1201 City Manager's Departments CityManager's Office......................................................................................................................................2101 CityClerk.........................................................................................................................................................2201 PublicInformation Office.................................................................................................................................2401 Administrative Services Department Finance.............................................................................................................................................................3101 HumanResources.............................................................................................................................................3301 AdministrativeServices....................................................................................................................................3401 Community Development Department DevelopmentServices......................................................................................................................................4101 AdvancedPlanning...........................................................................................................................................4102 CodeCompliance.............................................................................................................................................4103 Building&Inspection Services........................................................................................................................4201 Public Works Department GeneralEngineering ........................................................................................................................................5101 DevelopmentEngineering................................................................................................................................5102 EnvironmentalServices....................................................................................................................................5103 Streets&Storm Drains.....................................................................................................................................5201 Parks&Landscape Maintenance.....................................................................................................................5301 Recreation&Facilities Department RecreationServices..........................................................................................................................................6101 TeenServices ..................................................................................................................................................6102 FacilityRentals.................................................................................................................................................6201 Public Safety PublicSafety Services......................................................................................................................................7101 Emergency Preparedness..................................................................................................................................7102 Non Departmental GeneralAdministration....................................................................................................................................8101 LegalServices..................................................................................................................................................8202 CommunityGrants...........................................................................................................................................8301 CommunityEvents...........................................................................................................................................8302 EmergencyOperations.....................................................................................................................................8901 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 0 INTRODUCTION SECTION INTERNAL SERVICE FUND PROGRAMS Administrative Services Department OfficeSupport Fund.........................................................................................................................................3102 Information Technology Services Fund...........................................................................................................3201 ITEquipment Replacement Fund.....................................................................................................................3202 Public Works Vehicle&Equipment Maintenance Fund........................................................................................................5202 Vehicle&Equipment Replacement Fund........................................................................................................5203 Recreation&Facilities Department FacilityMaintenance Fund...............................................................................................................................6202 FacilityFFE 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 • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 0 INTRODUCTION SECTION 0i S A Rq�.oC 1956 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 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 on the agenda. • The City's primary long-term financial goals are to maintain the City's fiscal health,preserve essential services, reduce financial risk, and support short and long-term administrative, financial, and operational goals in a financially judicious manner. Long-term financial and infrastructure planning and the annual adoption of a structurally balanced budget provides the foundation to these long-term financial goals. The City shall promote and implement strong internal financial controls to manage risks and monitor the reliability and integrity of financial transactions and operational activities. • 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION • 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 30'of each year,to be effective for the following fiscal year running from July 1 st through June 301. 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. • 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 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 0 INTRODUCTION SECTION 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 Ca1PERS notified the City that as of 6/30/2015,the City's Unfunded Accrued Liability obligation of$7.7 million was to repaid over a thirty(30)year payment plan. Approximately 43%of the outstanding liability was immediately paid through the use of current year net operations and expendable reserve funding. Council also established an alternative repayment policy to pay the minimum payment amount to be equal to the amount due at the five-year mark to both lower the overall total long-term cost of the liability while maintaining fiscal stability into the future. However,because Ca1PERS revised their UAL estimates significantly as a result of actuarial changes and further investment losses,this UAL number grew significantly,necessitating an increase in the annual UAL excess contribution amount from$500,000 to$750,000 effective FY 2017/18. • 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION AUDITING AND FINANCIAL REPORTING • California State statutes require an annual financial audit of the City's financial records and transactions by independent Certified Public Accountants. The City shall comply with Generally Accepted Accounting Principles (GAAP) and produce annual financial reports pursuant to Governmental Accounting, Auditing, and Financial Reporting(GAAFR)guidelines. The independent auditor will issue an audit opinion to be included in the City's Comprehensive Annual Financial Report(CAFR)testifying to the financial reports conformance with accounting principles. • Additional financial reports issued by the Auditor's may include: Singe Audit Report(annual report of federal grant expenditures if in excess of the federal single audit limit is expended in a fiscal year), a Transportation Development Act (TDA) report (annual report of TDA fund expenditures), an Appropriations Limit review report(to establish tax revenue appropriation limit),and a Management report on the City's Internal Controls. • The City shall submit the CAFR to the Governmental Finance Officers Association(GFOA)Financial Reporting Program each year for review, and if in compliance with the program's requirements, to receive an award for meeting GFOA's financial reporting standards. • Regularly scheduled external Financial Reports include the following: • State required Annual Cities Report and Annual Streets Report completed in conjunction with the year- end close • Quarterly SMIP(Seismic Motion)fee reconciliation reports; CASp(ADA Accessibility)reconciliation reports: and California Building Standard Commission(green building standards)reconciliation reports • Quarterly Use Tax Reports to remit uncollected sales tax to the State Board of Equalization • SB90 Mandated Cost reports for claims to comply with State regulated legislation • Annual UST Certification report to show fiscal responsibility for the City's underground storage tanks • Annual Possessory Interest Report submitted to the County's Assessor's Office to report City owned leased property • 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION • Project updates are recorded in the annual Capital Budget, with narrative, timeline, and financial summary information updated with each published budget document. • Capital improvements that specifically benefit a select group of users and/or are fee-for-service based are to be financed through user fees,service charges,special assessments and taxes,or development impact fees. • The City shall identify and dedicate capital improvement related funding directly to the CIP and to maximize the use of grant funding for capital improvement projects. • Grants,insurance,or other reimbursement funding is to be returned to the expenditure's funding source,unless otherwise directed by Council. For instance, Hillside Reserve funded projects that receive insurance reimbursement payments are to be returned to the Hillside Reserve,and grant reimbursements for projects funded through the CIP Reserve are to be returned to the CIP Reserve when payment is received. • After completion of the prior year's audit and the General Fund's priority funding requirements are met, the remaining net operations are moved into the Capital Project Reserve at year end. Use of the Capital Project Reserve for the subsequent fiscal year is reviewed and preliminary direction given by consensus of the City Council at the Annual Council Retreat. Final CIP funding direction is provide through the budget adoption. • Council has designated the following capital projects as fundamental to maintaining City infrastructure on an ongoing basis,and shall therefore have priority status for available Capital Improvement Reserve funding: The below funding guidelines shall be reviewed by Council for final CIP Budget direction each fiscal year: * $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 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET E INTRODUCTION SECTION current use,rather than paying market value based tax rates. In exchange,the property is to remain undeveloped and continue to function in the same manner for the duration of the contract. Contracts run for 10 years and are automatically renewed unless the farmer or rancher cancels it. The City does not limit the number of Williamson Act contracts entered into each year. • The Mills Act is State-sponsored legislation granting local governments the authority to enter into an agreement with property owners to allow reduced property tax payments in return for the restoration and continued maintenance of their historic property. Since the agreement reduces property tax assessment,the City receives a smaller share of property tax revenue in comparison to a property that is assessed at market value. The City will allow approval of up to three Mills Act Contracts per year. EXPENDITURES AND PURCHASING • All expenditures shall be in accordance with the City's purchasing policy, travel policy, credit card policy, contract policy and public contract code,state or federal law,or any other applicable guidelines or regulations. • Expenditures are managed at the program level. Program managers are to ensure expenditures do not exceed the budgeted workplan and must take immediate action if at any time during the fiscal year an 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 OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET a INTRODUCTION SECTION 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 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION • 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. • 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 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 • 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION FUND BALANCE RESERVE POLICIES Prudent financial management dictates that the City reserve a portion of its funds for future use to: maintain fiscal stability;ensure the continued orderly operation of government and provision of services to residents;and to mitigate current and future risks. As a general budget precept,the City Council decides when and whether to appropriate available funds to and from a reserve account. Use of reserve funds must be authorized by either specific direction in the annual budget, or by a separate City Council action—unless specifically directed by policy. Responsible fiscal stewardship also requires adequate reserves be maintained for all known liabilities and established City Council and community directed initiatives. In the following Fund Balance/Reserve Policy guidelines,the descriptions include identification of the fund type and classification,the purpose of the reserve,minimum and maximum funding goals if appropriate,appropriate utilization of the reserve and by what authority,and the procedure for funding the reserve initially;on an ongoing basis,or after utilization. FUND BALANCE AND NET POSITION In 2009,Governmental Accounting Standards Board("GASB")Statement No.54 revised fund balance classifications for"Governmental Funds" into five specific classifications of fund balance with the intent to identify the extent to which a specific fund balance reserve is available for appropriation and therefore spendable, or whether the fund balance reserve is constrained by special restrictions. Government Funds for which these new rules apply include: the General Fund, Special Revenue Funds,Capital Project Funds,and Debt Service Funds. For "Non-Governmental Funds", equity classifications are classified as "Net Position" with sub-classifications of Restricted or Unrestricted Net Position. A third component of a Non-Governmental Fund's equity is"Net Investment in Capital Assets,"which for Saratoga refers to the non-monetary portion of equity such as vehicles and equipment, net of depreciation. Non-Governmental Fund types include Proprietary Funds(Enterprise and Internal Service Funds) and Fiduciary Funds. GOVERNMENTAL FUND TYPE RESERVE CLASSIFICATIONS The Governmental Reserve classifications are defined as follows,which includes the applicable reserves that fall into the classification. Non-Spendable Fund Balance Represents resources that are inherently non-spendable from the vantage point of the current period. The City does not presently hold Non-Spendable Reserve funds. Restricted Fund Balance Represents fund balance that is subject to external enforceable legal restrictions. The City maintains the following restricted fund balances under this designation: • General Fund: Environmental Services Fund Balance Reserve • Special Revenue Funds: Landscape&Lighting Assessment Districts Fund Balances • Debt Services Fund: Library General Obligation Bond Debt Service Fund CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION • Capital Project Funds a) Park in Lieu Funds b) Highway User Tax Allocation Fund(Gas Tax) c) Capital Project Grant Funds Committed Fund Balance Represents fund balance constrained by limitations the government imposes upon itself at its highest level of decision making and remains binding unless removed in the same manner. The City maintains the following fund balances under this designation: • General Fund: Hillside Stability Reserve • General Fund: Facility Replacement Reserve • Capital Improvement Plan Funds: Capital Improvement Project Fund Balance Reserve Assigned Fund Balance Represents fund balance identified by Council for an intended use;however as no legal obligations exist,the funds may be re-designated and utilized for another purpose if Council chooses. The City maintains the following General Fund reserves under this designation: • General Fund: Future Capital&Efficiency Project Reserve • General Fund: Carryforward Reserve Unassigned Fund Balance Represents funding which may be held for specific types of uses or operational funding/stabilization purposes,but is not yet directed to a specific purpose. Only General Fund reserves can be designated under the "Unassigned"fund balance classification. Other fund types are by nature structured for specific purposes,hence the fund balances are therefore considered"assigned"for that purpose. • General Fund: Working Capital Reserve • General Fund: Fiscal Stabilization 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). • 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. • 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION GENERAL FUND RESERVES Environmental Services Reserve Under the Restricted Fund Balance classification,the Environmental Services Reserve represents revenues collected under a prior funding structure for environmental purposes,and is therefore restricted for use in funding environmental program costs such as clean water 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 presented 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. Reserve funding is to be used for emergency work which exceeds operational funding provided for in the Operations Budget. Upon use,refunding of the reserve shall be provided from year-end net operations in the amount of$100,000 each fiscal year until the $1,000,000 reserve cap is reached. Facility Replacement Reserve The Facility Replacement Reserve is established to accrue funding for the major rehabilitation or replacement of City Facilities (buildings/structures). Eligible uses of this reserve include both direct funding of public facility improvements,and the servicing of related debt. Small facility building replacements,major facility renovations,and down payment contributions toward a large facility replacement in conjunction with bond measure funding are examples of intended Facility Replacement Reserve uses. An initial contribution of $300,000 was established in FY 2012/13 with Council's recommendation to continue funding at this level,as a priority use of year-end net operations funding. Effective FY 2016/17,Council's direction is to increase the annual year-end contribution amount to$500,000,as funding is available. Council has set a goal to fund the Facility Replacement Reserve to a level equal to 1/3 of the City's insured value over the next 20 years (by FY 2036/37) as a fiscally responsible practice to maintain city infrastructure In principle, Saratoga does not pursue bond money to fund capital improvements, however,replacing high cost facility infrastructure requires a long-term funding plan that may or may not be attainable through annual contributions. Therefore, the Facility Replacement Reserve demonstrates both the City's good faith funding effort and financial stewardship for future bond measures if needed,as well as accumulating funding for a down payment on replacement infrastructure to minimize bond funding needs. A facility's insured value represents the initial cost of the facility decreased each year over the facility's estimated lifespan. Therefore,insured value represents the remaining life of the 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION Future Capital&Efficiency Projects Reserve Under the Assigned Fund Balance classification,the Reserve for Future Capital Improvement&Efficiency Projects shall reserve funding for as yet undefined capital and efficiency improvement projects. Reserve funding is derived from General Fund accumulated net operations(as available)and is therefore considered a"one-time funding source". Funds are held in this reserve until Council reviews funding 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 to avoid use of short-term borrowing for cash flow management. To support this policy a Working Capital Reserve is maintained that meets cash flow requirements,and in turn,ensures the continuance of services to the public while also preserving the City's credit worthiness. To provide adequate working capital in the case of extreme circumstances, the City shall maintain, in combination with the Fiscal Stabilization Reserve, a minimum operational reserve of 60 days of the following year's General Fund budgeted expenditures(net of internal service charges and transfers out),up to a maximum operational reserve amount equal to 90 days of the following year's General Fund budgeted expenditures (again, net of internal service charges and transfers out). This reserve falls under the Unassigned Fund Balance classification. Beginning with the FY 2016/17 budget, the Working Capital Reserve is maintained at$1 million(reduced from$2 million),and the Fiscal Stabilization Reserve in maintained at$2.5 million(increased from$1.5 million). At this time a Working Capital Reserve of$1 million is sufficient for cash flow needs,however,the funding level will be assessed on an annual basis to ensure $1 million is sufficient for cash flow needs. 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 increased by a $1 million transfer from the Working Capital Reserve,up to$2.5 million. As of FY 2018/19,the Development Services Reserve of$650,000 was integrated into the Fiscal Stabilization Reserve to reflect the Council's desire to review citywide operational priorities and needs as a whole rather than segmented sections. This brought the Fiscal Stabilization Reserve up to$3,150 million;approximately 15%of the General Fund's budgeted operations. Together,these funding shifts provide a focused but flexible reserve funding purpose and utilization structure. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 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 Ca1PERS funding change. Council may utilize funding at budget adoption,by adoption of a budget adjustment resolution during the course of the year, or after a Federal, State, or locally declared emergency. In the event a locally declared emergency takes place, the City Manager has the authority to spend funds until such time as the City Council takes action. Reserve appropriations are to be replenished from year-end net operations,as available,on a priority basis. The$2.5 million Fiscal Stabilization Reserve funding level will be assessed on an annual basis to ensure this funding level is sufficient in light of operational reserves and utilization needs. Compensated Absences Reserve Under the Unassigned Fund Balance classification, the Compensated Absences Reserve is established to smooth expenditure fluctuations resulting from the payout of accrued leave to employees at service separation and distribution payouts. Reserve funding equal to one-third of the compensated absences liability is established at year-end. Reserve funding in excess of one-third of the liability is to be returned to the General Fund's Other Unassigned Reserve. Use of the reserve occurs when total annual compensated absences payouts exceed budgeted salary funds. Large payouts decrease the compensated absences liability at year-end, thereby supporting the practice of utilizing the reserve as needed. Year-end reconciling allocations to and from the reserve are approved though Council's budget resolution adoption each fiscal year, with the liability and resulting reserve amounts determined as part of the year- end close process. Council Discretionary Reserve Under the Unassigned Fund Balance classification,the Council Discretionary Reserve represents unspent funds from the Council's annual appropriation. The reserve provides a mechanism to roll forward remaining Council Discretionary Funds as reserve funds are immediately re-appropriated into the following fiscal year. This allows Council the flexibility to take advantage of unforeseen 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 f ind's accumulated net operations are typically accounted for in an undefined reserve account in the fund—and typically titled `Fund Balance Reserve'. As other funds are structured for specific uses or commitments, the fund balance, by its distinctiveness, already has a directed purpose, whereas the General Fund is used for multiple and general operational purposes thereby requiring a distinction of purpose for each reserve. Council may utilize reserve funding at budget adoption or by adoption of a budget adjustment resolution during the course of the year. Reserve funding is replenished from year-end net operations,as available. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET .: INTRODUCTION SECTION SPECIAL REVENUE FUND RESERVES Landscape&Lighting Assessment District Funds Assessment District Funds are Special Revenue Funds, which is a type of governmental fund. As a governmental fund,the Landscape and Lighting Assessment District Funds comply with GASB 54 fund balance classifications,and by nature of the fund's purpose,fund balance reserves are classified as restricted reserves. Special Revenue Funds account for and report the proceeds of specific revenue sources that are restricted or committed to specified purposes(other than for debt service or capital projects.) For the City,Landscape&Lighting Assessment District Special Revenue Funds were established to account for each individual assessment district;thereby each fund has its own separate fund balance reserve. Each district's fund balance reserve should be sufficient to provide working capital to cover operational expenses through the first half of assessment receipts in January,therefore equitable to approximately one-half of a district's annual expenditure budget. The second half of receipts are received in June. Some districts may include capital improvement projects in addition to ongoing regular maintenance resulting in fund balance increasing over the years to accumulate sufficient resources for the improvement projects. As each district's situation is different,a district's maximum fund balance shall be 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 RESERVES Library General Obligation(GO)Bond Debt Fund The Library General Obligation(GO)Bond Debt Fund is a Debt Service Fund established to account for the financial resources accumulated for principal,interest,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 15t 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET .' INTRODUCTION SECTION CAPITAL IMPROVEMENT PROJECT FUND RESERVES Overview Capital Improvement Project(CIP)Funds account for the acquisition and maintenance of major capital assets other than those financed through special assessments or enterprise funds. Capital Project Funds area 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 designated for use by project. The CIP Street Fund receives annual funding from designated fees,reimbursements,contributions,and transfers from other funds. The CIP Grant Fund receives federal,state,and local grants which vary in source and amount from year- to-year. On occasion,a private grant may be received. Typically,CIP Grant Funds have a negative fund balance as project work is conducted before reimbursement is received. Gas Tax Funds represent annual Highway User Tax and Transportation Congestion Relief revenue allocations that are to be accounted for separately and are subject to State audits. Park&Trail Improvement Project Funds Park&Trail Improvement Project Funds provide for capital improvements to the City's neighborhood 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. The CIP Facilities Fund receives annual funding from a General Fund transfer, from Theater Ticket Surcharge Fees, and from reimbursements and contributions. The Facility Grant Fund receives revenue from grants that vary in amount from year-to-year. Typically,CIP Grant Funds have a negative fund balance as project work is conducted beforehand and then reimbursed from expenditure invoices. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION Year end fund balance represents the remaining unexpended project funds (net of any negative CIP Grant Fund Balance)which are subsequently re-appropriated by Council into the following budget year through budget adoption. Administrative&Technology Improvement Funds Administrative & Technology Improvement Project Funds provide for major capital expenditures to improve or enhance administrative,operational,or technology based systems,processes,or functions. Each of the Administrative &Technology Improvement Funds(CIP Admin&Tech Improvement Fund and the Admin&Tech Grant Fund)have multiple projects which roll up into the overall fund balances,but remain designated for use by individual project. The CIP Administrative& Technology Improvement Fund typically receives funding from a General Fund transfer as administrative and technology improvement focused grants are limited. If grants are received,projects typically have a negative fund balance as project work is conducted beforehand and then reimbursed from expenditure invoices. Year end fund balance represents the remaining unexpended project funds (net of any negative CIP Grant Fund Balance)which are subsequently re-appropriated by Council into the following budget year through budget adoption. INTERNAL SERVICE FUND RESERVES Overview Internal Service Funds are established to provide centralized cost centers for shared 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 Replacement 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 positive or negative fund balance at any given point in time—Internal Service Funds are similar to the separate checking and saving accounts a person may use for different purposes. At year end, each fund's net balance is represented as the "Fund Balance Reserve". 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 determined by the specific operational needs of the program, but typically will fall within 25 — 50% of annual budgeted expenditures. Internal Service Funds are a type of Proprietary Fund; therefore GASB 54 fund balance classification (for Governmental Fund types)does not apply. Instead,Internal Service Fund's financial statement reports are presented similar to private-sector businesses and use "Restricted" and "Unrestricted Net Position" to define net operational balances(equity/fund balance reserves). Unrestricted Net Position allows reserve funding to be used(with Council approval)within the general scope of the fund's purpose. Restricted Net Position reserves are limited to a specific use,narrower than the stated purpose of the fund. For example,grant funding provided for a defined use,as in remaining funds from a Risk Management Training Grant within the Liability/Risk Management Fund,must be used for qualified training purposes. Most Internal Service Funds reserves are held in the Unrestricted Net Position category. Liability/Risk Management Reserve Fund The Liability/Risk Management Fund's Unrestricted Net Position reserve supports cash flow needs and minimizes interfund loans. Appropriate levels are maintained through service chargebacks to the programs,based on operational CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION risk factors. Most claims are covered under the insurance risk pool JPA. The City is self-insured for up to $25,000 per General Liability and City Vehicle Auto Liability occurrence,and up to$5,000 for Property Damage and 3'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 during the year. The reserve is replenished from the Fund's net operations in subsequent years. Workers Compensation Fund The Workers Compensation Fund's Unrestricted Net Position reserve supports cash flow needs and minimizes interfund loans. Appropriate levels are maintained through service chargebacks to the programs,based on operational risk factors. The purpose of the Workers' Compensation program is to provide insurance benefit coverage for employee work-related illness and/or injuries through its membership in a shared risk pool. The risk pool provides coverage up to$250,000,and excess insurance provides coverage over this amount up to$10 million. The Workers Compensation program receives funding from allocations charged to covered departments, from grant funding, and from claim reimbursements. At year end, unspent funding flows into Unrestricted Net Position, or Restricted Net Position for grant funding. Requests for use of the reserve balance are approved by Council through budget adoption or by a Council approved budget adjustment resolution during the year. The reserve is replenished from the Fund's net operations in subsequent years. Office Support Fund The Office Support program provides a centralized cost center for administrative office support expenses, including photocopy machine leases, postage machines, shared office machines, and the associated maintenance and repair services,postage,paper,and copier supplies. For efficiency,office support costs are managed collectively and charged back to departmental programs on a use-basis allocation. Accumulated net operations are held in the Office Support Fund for working capital cash flow. The reserve is funded from the allocations charged to covered departments. At year end,unspent funding flows into Unrestricted Net Position. Requests for use of excess reserve balance are approved by Council through budget adoption or by a Council approved budget adjustment resolution during the year. The reserve is replenished from the Fund's net operations in subsequent years. Information Technology Services Fund Information Technology Services provide for the delivery of technology based services throughout the City's operations, including maintenance of the City's information systems and infrastructure, program implementation, streaming video,internet,landline,and wireless communications systems,cloud based technology,and support of all existing information technology as well as new technology initiatives. For technology oversight, security, and efficiency, information technology costs are managed collectively and charged back to departmental programs on a service-based allocation to fund the program. Funding for the program comes from these allocations charged to covered departments. At year end,unspent funding flows into Unrestricted Net Position. Accumulated net operations are held in the Information Technology Services Fund for working capital cash flow. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution during the year. The reserve is replenished from the Fund's net operations in subsequent years. Vehicle&Equipment Maintenance Fund The Vehicle&Equipment Maintenance program provides for the fuel,maintenance,and servicing of the City's fleet and major equipment to ensure all vehicles and equipment comply with manufacturer's recommendations and safety requirements. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION To fund the program, vehicle & equipment replacement costs are charged back to the departmental programs based on assigned usage. Accumulated net operations are held in the Vehicle&Equipment Maintenance Fund for working capital cash flow. At year end,unspent funding flows into Unrestricted Net Position. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution during the year. The reserve is replenished from the Fund's net operations in subsequent years. Facility Maintenance Fund The Building Maintenance program provides for the custodial, maintenance, and non-major repairs and building improvement services for all facilities at the Civic Center, Prospect Center, and Museum Park. Additionally, the program supports the maintenance and repair needs for the tenants of City leased buildings as defined in the lease agreements. To fund the program,total costs are allocated back to departmental programs primarily based on building space usage. General and public use is allocated to the Non- Departmental program. Accumulated net operations are held in the Building Maintenance Fund for working capital cash flow. Funding comes from the allocations charged to covered departments. At year end, unspent funding flows into Unrestricted Net Position. Requests for use of the reserve are approved by Council through budget adoption or by establishing chargeback funding levels higher or lower than budgeted expenditures. The reserve is replenished from the Fund's net operations in subsequent years 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. 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 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 equals or exceeds the cost of replacing the asset. The reserve is intended to be maintained at a level sufficient to provide replacement funding in accordance with replacement schedules. Requests for use of the accumulated reserve funding are approved by Council through budget adoption, or if an unplanned situation occurs,by a Council approved budget adjustment resolution during the fiscal year. The reserve is replenished by replacement charge allocations in subsequent years. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 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 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION • New projects on the CIP Candidate List • Review of requests in conjunction with funding sources 2. Capital Project Assessment The City Council's review of the capital project assessment package is to be held annually, early in the budget development cycle, in late January or early February. In addition to reviewing the assessment package, the Council will also review currently funded capital projects that have unencumbered funds to determine if the project will continue in the following fiscal year. 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. During the assessment review process,as projects are assessed,they are either: • Rejected • Accepted,or • Modified and Accepted At the conclusion of the assessment review, Council will prioritize accepted projects and designate project funding. Projects placed on the Funded List will be brought forward to the upcoming Budget Study Session. The remainder will be placed on the CIP Unfunded Project List. NOTE: Rejected project ideas may be nominated for another attempt to become an approved project in the following year(s),but must again go through the project development and assessment process. 3. Budget Study Session Updated CIP funding availability and project revisions will be reviewed a final time with Council. Council will conduct a final assessment and provide consensus direction to staff for inclusion in the upcoming Proposed Budget Hearing to be held in May. CIP PROJECT FUNDING 1. Proposed Budget Hearing The final Proposed Capital Budget with the recommended project funding will be brought to 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 Pt of that year. 3. Funding Process Follow-up Approved CIP projects that do not receive funding allocations will be assigned to the next budget year's CIP Unfunded List. The list will be included in the budget document,and assessed again during the following year's Capital Project Nomination and Assessment Process. The new CIP Unfunded List has a life span of one budget cycle. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION GANN APPROPRIATION LIMIT BUDGET RESOLUTIONS CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 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 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 subsequently modified by two initiatives-Proposition 98 in 1988 and Proposition I I I 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 I I I 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 (or decreases) in population and the cost of living. This State Appropriation Limit is thence established as the maximum 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 2018/19. 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 Appropriation Population Population Per Capita Appropriation Limit June30 Limit Factor Factor Income❑ Limit Increase 2009 28..837.681 1.0172 1.0077 1.0429 30,592.104 6.08% 2010 30,592.104 1.0156 1.0070 1.0062 31,261,971 2.19% 2011 31,261,971 1.0126 1.0100 0.9746 30,851,813 -1.31% 2012 307851,813 1.0089 1.0091 1.0251 31,907,666 3A2% 2013 31,907,666 1.0124 1.0070 1.0377 33,521,156 5.061% 2014 33,521,156 1.0157 1.0129 1.0512 35,790,667 6.771% 2015 35,790,667 1.0150 1.0066 0.9977 36243,974 1271% 2016 36,243,974 1.0113 1.0400 1.0382 38.053.696 4.991% 2017 38,053,696 1.0126 1.0053 1.0537 40.602.404 6.70% 2019 40,602004 1.0081 1.0023 1.0369 42.441,648 4.53% 2019 42.441,648 1.0099 1.0052 1.0367 44,434,849 4,70% From the above information,the City of Saratoga's appropriation limit for fiscal year 2018/19 is calculated as follows: FY2018/19 Calculation Increase in California 2017/18 2018i 19 County Per Capita Appropriation Appropriation Appropriation Population Income 4 Factor Limit Limit 1.0099 X 1.0367 = 1.0470 X $ 42441,648 = $ 44,434,949 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET :1 INTRODUCTION SECTION Percentage ofAppropriation 2018/19 2018/19 Percentage Tag Appropriation of Revenues Limit Limit 15,299,900 / $ 44,434,849 = 34% As illustrated in the above calculation,the total amount of tax revenues appropriated to the City in FY 2018/19 is not to exceed $44,434,849. The FY 2018/19 budget anticipates $15,299,900 in Gann designated tax revenues which equates to$29,134,949 less than,or approximately 34%of the appropriation limit. Therefore,the City's tax revenues fall substantially below the appropriation limit. APPROPRIATION TREND The City of Saratoga is an affluent suburb community,known for its excellent schools,beautiful neighborhoods,and is 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, Saratoga was established as a low-tax city, meaning the City's property tax dollar growth has increased at a slower pace than either population or per capita personal income growth rate since the Gann calculation was established in 1979. Both the low-tax status and limited development growth has 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 40 year average), the significantly wide margin between tax revenues and the appropriations limit will continue to provide a safe buffer long into the future. TAx REVENUES TO APPROPRIATIONS LIMIT 10 YEAR TREND 60,000,000 30,0o0,0DD -40,000,DDD -- 30,Oo0,0D0 20,000,000 10,000,000 2013/14 2014/15 2015/16 2016/17 2017/18 2019/19 2019120 202C 21 2021/22 2022/23 Actuals Actuals Actuals Actuals Estimated Budgeted Projected Projected Projected Projected 2013/14 2014/15 2015/16 2016/17 2017118 2019119 2019120 2020121 2021/22 2022/23 Tax Revenues 11,408,601 12,658,159 13,501,351 14,148,528 15,063,256 15,299,900 16,061,814 16,861,671 16,861,671 17,701,360 -appropriation Lim 35,790,667 36,243,974 38,053,696 40,602,404 42,441,648 44,434,849 46,273,843 48,188,950 48,188,950 50,183,314 Revenue to Limit 9 32% 35% 3591 35% 35% 34% 3596 35% 33% 35% APPROPRIATION LIMIT ADOPTION The resolution to revise the appropriation limit to $44,434,849 for FY 2018/19 was brought to Council for approval on June 6,2018. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION GANN APPROPRIATION LIMIT RESOLUTION I,....,,..� RESOLUTION 18-029 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ESTABLISHING THE FISCAL YEAR 2018/19 GANN LIMIT APPROPRIATION FOR THE.CITY OF SARATOGA WHEREAS,the City of Saratoga has established its Base Year Appropriation Limit as$5,961,747 in Fiscal Year 1979/79;and WHEREAS,the cumulative changes to population and to the California per capita personal income since the Base Year established the revised Proposition I I I Fiscal Year 1996/97 Appropriation Limit as S16,153,314; and WHEREAS,to the best of the City's knowledge and belief,the Slate Department of Finance figures y provided to the City in response to Proposition I I I passed by the voters in.tune 1990,reflects the appropriate statistics relevant to the calculation ofthe Fiscal Year 2018119 Appropriation Limit,whioh includes: • County population adjustments for the year ended December 31,2017 equal to 0.99A,and • City population adjustment for the year ended December 31,2017 equal to 0.52%,and • Change in California per capita cost of living for Fiscal Year 2018/19 equal to 3.67% NOW,THEREFORE,the City Council ofthe City of Saratoga hereby resolves that,based on the foregoing figures and the provisions of Article XIIIB of the Constitution of the State of Ca5forria,the following figures accurately represent the Fiscal Year 2018/19 Appropriation Limit for the City of Saratoga at$44,434,849. The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 6th day of7une 2018 by the following vote: AYES: Mayor Mary-Lynne➢ernald,Vice Mayor E.Manny Cappello,Council Members Howard A.Miller,Emily Lo,Rishi Kumar NOES: ABSENT: ABSTAIN: ® �� Mary ne ernald,Mayor ATTE$, . DATE: Nora Pimentel,MMC,.O y Clerk CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION ANNUAL BUDGET RESOLUTION RESOLUTION Na 10-M A RESOLUTION OFTHE CITY COUNCIL OF THE CITY OF SARATOGA TO ADOPT THE.FISCAL YEAR 2819119 OPr RATING k CAPITAL RUDGFT W HEREAS,Section 2.20.050(i)of the Code of llle Chy of Saralogr requires the C i[y,Manager 1u prcparc and suhn it the proposed annual budge[to the City Council for its approval:and WHEREAS,on May 9^,dic Planning Coin ninwon conduclod an annual rev kw of"n--d nc,v 1:apital projects and determ incd that all prolwsed new capital projects are consislenl with the City's General Plan-.and WHEREAS,the City-Manager has subm 201 VM to the City Council at a public hearing hcl WHEREAS,the City Council has rev" m m11 size and am tdemified by CEOA na not Wing 11 pillamtef i.on the cuttintl crtl 1315303-Gass budgets fa FY 201 V19,and if budget modificai 31.mirror alkmions to land%15304-Clam 4j,and inkwunditnt galhenng purpoms I§I53M-Chas el; direction for changes to the proposed budget durin AND BE IT FURTHER RESOLVED.Ihm I'm City Council hereby directs that any chnnKc.rx WHF.RE.AS,staff will incorporate any n, impact.resulting Item:Ctttmail nppraral of any nlesl And owrf ct pntcc"a w managCmr:n11:11rrlp nv1li,ar C%l i males,carrcc[iots,adjustmrn[s.grams,plti�-thi plan, from ctassi[kafinn adjummeps OF 1nt"lmrcous Q0lMldiam,for clWges Jue[P Marc rchnoi final f iwal Year 201If 19 Cyperamg and C'apilal hi rsmnmc% grans appiarmis. claim reknbursemcnty, boded camyforwruds, or addeJ revenue and C pcndiiyoM frown de"Jopnlcnl fee baud prtu-througlf bolIgeJ appmlaurntmv,OF fnan kinher City 1I1W TIiF:k F.FORF,HF:IT RESOLV1 Council umcerntu direcsion received on 7uhe C 2.0t9.be uwallsorated willno 11rr Gna11:I-Al 'cat'_[FI all9 adopts the Fiscal Vcar 201 V19 Op"Ikng&Capit f yperating R Capital Rudgetx in The budget adoption rcpxt,and in this resoluliul AND HE IT FURTHER RFSOLVF:D,that the Fhtancc A Adlnmislranrc Scrv4x&❑ir,X10f is AND HE IT FARTHER RESOLVED,I drrcded to rccurd these changer•mtir the Clly's ACM111 latt RWrd%1+1 a.a.+rJance with apMT!"iate rcfmcnwnM cot dwas,and revisions for carry. acc.11"I ng pracliccr ldcniifkd funding fie specified expenditures,gran hxssard front die prier year within each fund Tlw and foregoing rr-%Aullrm t•as pnwwd And edsgllcd 0 a rugular mcdlne of slit Satalogs City encumbrances as of June 30,20i8; C-m1ocit hcw an lb,b"day of June,201 S.by flle Inikiwlrlg vole AND HE IT FARTHER RESOLVED, AYES: Mayor Man-[.yunc lk-rnAJ.Vice Mayor C.MWtAy Caypelln,0411161 MLothr:rx included in the FY 201E09 Capital Imrprarernen Iloward A•tifillcr.Frnily[. .kishi Kunnar cmirontrrarn and we categorically exempt tram da HCTbS- projects involve maintenance,repair,or mirror ahe AHSGNT: I J,replacement or roconsuuclion of exisling auto AR51 AIN: M y Remold.Mayor A _ r�I1711�' Nara Pltnnu el.wic gy C:Jwl1 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET INTRODUCTION SECTION 1956 F0?, CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY OF SARATOGA FINANCIAL SUMMARIES SUPPLEMENTAL INFORMATION CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION 300 250 200 150 100 50 0 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. TotalFund Activity Summary........................................................................................................................................89 TotalRevenues-by Fund...............................................................................................................................................90 TotalExpenditures-by Fund........................................................................................................................................92 TotalRevenues-by Category...................................................................................................................................... 94 TotalExpenditures-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 • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION DEPARTMENTAL BUDGETS Department level schedules which provide an overview of funding source and expenditure use by each program within the department. DepartmentRevenues -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 Positionsby Department ............................................................................................................................................118 Staffingby Department ...............................................................................................................................................120 Staffingby 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. GeneralFund Revenues ...............................................................................................................................................123 Non-General Fund Revenues ......................................................................................................................................130 CapitalRevenues ...........................................................................................................................................................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 • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION TOTAL FUND BUDGET ACTIVITY SUMMARY FY 2018/19 Revenues Expenditures Source (Use) Estimated Fund Balance & & of Fund Balance Fund Category July 1, 2018 Transfers In Transfers Out Fund Balance June 30, 2019 Operating Funds General Fund Reserves Environmental Services $ 213,182 $ $ $ (50,000) $ 163,182 Hillside Stability 1,000,000 - 1,000,000 Capital Projects 1,349,622 (1,270,000) 2,818,703 2,898,325 Facility Reserve 2,200,000 500,000 2,700,000 Carryforwards 155,264 (155,264) - Working Capital 1,000,000 1,000,000 Fiscal Stabilization 3,150,000 3,150,000 Compensated Absences 247,146 - 247,146 Other Unassigned 3,818,703 22,296,576 (21,954,691) 3,113,439 1,047,149 Total General Fund Reserves 13,133,917 22,296,576 (23,224,691) 6,226,877 12,205,802 Special Revenue Funds Landscape&Lighting Districts 1,385,339 684,251 (774,620) 1,294,970 Total Special Revenue Reserves 1,385,339 684,251 (774,620) 1,294,970 Internal Service Funds liability/Risk Management 553,907 411,362 (570,100) 395,169 Workers Compensation 297,374 185,000 (225,488) 256,886 Office Support Services 116,964 50,000 (59,850) 107,114 IT Services 364,264 385,000 (637,801) 311,463 Vehicle&Equipment Maintenance 236,333 275,000 (272,422) 238,911 Facility Maintenance 515,785 925,000 (944,018) 496,767 Vehicle&Equipment Replacement 517,948 150,000 (311,800) 356,148 IT Equipment Replacement 423,729 150,000 (191,250) 382,479 Facility FFE Replacement 420,814 200,000 (366,400) 254,414 Total Internal Service Reserves 3,447,118 2,931,362 (3,579,129) - 2,799,351 Total Operating Funds $ 17,966,374 $ 25,912,190 $(27,578,440) $ 6,226,877 $ 16,300,123 Debt Service Funds 2001 Series GO Bonds 997,756 725,039 (841,535) 881,260 Total Debt Service Funds 997,756 725,039 (841,535) 881,260 Trust&Agency Funds West Valley Clean Water JPA 995,000 (995,000) - Total Trust&Agency Funds $ - $ 995,000 $ (995,000) $ - $ - Total Operating Budget $ 18,964,130 $ 27,632,229 $(29,414,975) $ 6,226,877 $ 17,181,383 Capital Improvement Funds Street Projects 1,459,585 9,536,269 (10,995,855) - - Park&Trail Projects 1,199,231 521,015 (1,714,182) 6,064 Facility Projects 136,104 440,000 (541,103) 35,000 Administrative&Tech Projects 742,105 255,000 (997,105) - Total Capital Improvement Funds 3,537,025 10,752,285 (14,248,246) - 41,064 Total Operating&Capital Budget $ 22,501,155 $ 38,384,513 (43,663,221) $ 6,226,877 17,222,447 Capital Improvement Funds - Unspent prior year capital funds are shown as beginning fund balance carryforward amounts in the first column.New revenue,grants to be received,and transfers-in are shown in the second column. Together these funds are available to be budgeted for capital projects expenditures(with a couple of exceptions). While only a portion of the funding will be expended during the fiscal year, all available funds are appropriated to allow for multi-year project work, project encumbrances that cross fiscal years, and project timing uncertainties and changes. At year-end, the remaining project balances carry forward into the next fiscal year's beginning fund balance budgeted amount. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET :' FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION TOTAL REVENUES & TRANSFERS IN - BY FUND FOUR YEARS PLUS BUDGET FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2017/18 FY 2018/19 Revenues By Fund Actuals Actuals Actuals Adjusted Actuals Adopted General Fund General Fund $19,519,545 $20,782,596 $21,112,412 $20,777,773 $22,970,107 $22,296,576 Total General Fund $19,519,545 $20,782,596 $21,112,412 $20,777,773 $22,970,107 $22,296,576 Special Revenue Funds Landscape&Lighting Districts 566,483 599,827 658,256 721,723 756,946 684,251 Total Special Revenue Funds $ 566,483 $ 599,827 $ 658,256 $ 721,723 $ 756,946 $ 684,251 Internal Service Funds Liability/Risk Management Ins 399,482 343,808 392,699 410,450 359,587 411,362 Workers Compensation his 217,567 185,000 179,954 185,000 185,934 185,000 Office Support Services 68,183 65,703 59,868 60,000 58,248 50,000 Information Technology Service; 430,803 481,485 531,058 580,600 588,530 585,000 Vehicle&Equipment Maintenanc 300,000 275,003 275,000 275,000 275,000 275,000 Facility Maintenance 882,299 906,440 934,424 925,000 930,759 925,000 Vehicle&Equipment Replaceme 206,393 163,563 125,000 150,000 177,531 150,000 IT Equipment Replacement 65,000 125,000 125,000 150,000 150,000 150,000 Facility FFE Replacement - 200,000 200,000 200,000 200,000 200,000 Total Internal Service Funds $ 2,569,728 $ 2,746,004 $ 2,823,002 $ 2,936,050 $ 2,925,588 $ 2,931,362 Debt Service Funds 2001 Series GO Bond 898,774 901,362 884,255 817,700 885,169 725,039 Total Debt Service Funds $ 898,774 $ 901,362 $ 884,255 $ 817,700 $ 885,169 $ 725,039 Trust&Agency Funds West Valley Clean Water jPA - - - - - 995,000 Total Trust Funds $ - $ - $ - $ - $ - $ 995,000 Capital Improvement Program Funds Street Projects 1,771,339 1,206,299 1,868,961 8,447,218 1,407,099 8,704,269 Park&Trail Projects 311,143 493,047 23,685 821,015 138,170 421,015 Facility Projects 38,580 40,371 224,530 165,676 81,702 62,000 Administrative Projects 163,928 138,552 137,115 130,000 141,412 130,000 Total Capital Improvement Pro; $ 2,284,991 $ 1,878,270 $ 2,254,291 $ 9,563,910 $ 1,768,384 $ 9,317,285 Total Revenues $25,839,520 $26,908,058 $27,732,217 $34,817,156 $29,306,195 $36,949,513 Operating Transfers In General Fund 267,918 55,384 32,000 442,198 FFE Replacement Fund - 180,000 - - - - Street Capital Project Funds 731,010 2,450,555 1,305,000 2,276,000 2,276,000 832,000 Park&Trail Capital Project Fund 443,445 378,380 171,548 545,000 545,000 100,000 Facility Capital Project Fund 472,653 153,896 190,648 - - 378,000 Admin Capital Project Fund 120,000 329,462 167,394 133,909 133,909 125,000 Total Transfers In $ 1,767,108 $ 3,760,211 $ 1,889,974 $ 2,986,909 $ 3,397,107 $ 1,435,000 Total Revenues&Transfers In $27,606,629 $30,668,268 $29,622,190 $37,804,065 $32,703,302 $389384,513 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET '1 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION TOTAL REVENUES & TRANSFERS IN - BY FUND TYPE FOUR YEARS PLUS BUDGET FY 2018/19 BUDGETED REVENUES Special Revenue Internal Funds Service Funds General Fund 2.0% 8.2% 58.0% Debt Service Funds 2.3% Trust& Agency Capital 2.8% Improvement Funds 26.7% FY 2014/1S FY 201S/16 FY 2016/17 FY 2017/18 FY 2017/18 FY 2018/19 %of Revenues By Fund Actuals Actuals Actuals Adjusted Actuals Adopted Total General Fund $ 19,519,545 $20,782,596 $21,112,412 $20,777,773 $22,970,107 $22,296,576 59.7% Special Revenue Funds 566,483 599,827 658,256 721,723 756,946 684,251 2.1% Internal Service Funds 2,569,728 2,746,004 2,823,002 2,936,050 2,925,588 2,931,362 8.4% Debt Service Funds 898,774 901,362 884,255 817,700 885,169 725,039 2.3% Trust&Agency Funds - - - - - 995,000 0.0% Capital Improvement Funds 2,284,991 1,878,270 2,254,291 9,563,910 1,768,384 9,317,285 27.5% Total Revenues By Fund $25,839,520 $26,908,OS8 $27,732,217 $34,817,136 $29,306,19S $36,949,513 100.0% Operating Fund Transfers - 447,918 55,384 32,000 442,198 - CIP Fund Trans fers 1,767,108 3,312,293 1,834,590 2,954,909 2,954,909 1,435,000 Total Revenues&Transfers $27,606,629 $30,668,268 $29,622,190 $37,804,065 $32,703,302 $38,384,513 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. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION TOTAL EXPENDITURES & TRANSFERS OUT - BY FUND FOUR YEARS PLUS BUDGET FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2017/18 FY 2018/19 Expenditures By Fund Actuals Actuals Actuals Adjusted Actuals Adopted General Fund General Fund $19,882,349 $18,198,969 $19,203,452 $20,406,745 $19,389,791 $21,954,691 Total General Fund $19,882,349 $18,198,969 $19,203,452 $20,406,745 $19,389,791 $21,954,691 Special Revenue Funds Landscape&lighting Districts 432,671 461,679 511,179 798,960 524,475 774,620 Total Special Revenue Funds $ 432,671 $ 461,679 $ 511,179 $ 798,960 $ 524,475 $ 774,620 Internal Service Funds Liability/Risk Management his 391,344 258,585 264,705 498,685 310,160 570,100 Workers Compensation his 184,683 195,124 190,303 192,765 182,611 225,488 Office Support Services 46,229 44,606 46,234 71,750 51,090 59,850 Information Technology Srvcs 432,550 467,583 497,208 613,850 532,339 637,801 Vehicle&Equipment Maintenan, 220,785 224,618 264,043 259,832 215,576 272,422 Facility Maintenance 813,842 804,049 850,535 870,323 869,578 944,018 Vehicle&Equipment Replcmnt 65,775 201,355 150,721 260,800 245,569 311,800 IT Equipment Replacement 23,687 44,762 84,040 89,800 41,569 191,250 Facility FFE Replacement - 40,778 40,853 507,588 277,556 366,400 Total Internal Service Funds $ 2,178,896 $ 2,281,460 $ 2,388,641 $ 3,365,393 $ 2,726,047 $ 3,579,129 Debt Service Funds 2001 Series GO Bond 889,960 885,010 847,885 847,310 846,735 841,535 Total Debt Service Funds $ 889,960 $ 885,010 $ 847,885 $ 847,310 $ 846,735 $ 841,535 Trust&Agency Funds West Valley Clean Water JPA - - - - - 995,000 Total Trust Funds $ - $ - $ - $ - $ - $ 995,000 Capital Project Funds Street Projects 2,261,620 1,397,415 2,772,822 12,732,677 3,932,377 10,995,855 Park&Trail Projects 544,470 787,389 127,362 2,351,382 465,837 1,714,182 Facility Projects 369,650 237,731 382,631 383,477 154,903 541,103 Administrative Projects 41,878 168,186 167,499 951,222 194,258 832,105 Total Capital Project Funds $ 3,217,619 $ 2,590,721 $ 3,450,314 $16,418,758 $ 4,747,375 $14,083,246 Total Expenditures $26,601,494 $24,417,839 $26,401,474 $41,837,166 $28,234,422 $42,228,221 Operating Transfers Out General Fund 1,666,098 2,017,656 1,620,648 1,872,909 1,872,909 1,270,000 IT Equip Replacement to CIP - - - - - - Street Capital Projects 61,010 1,443,419 30,000 1,082,000 1,382,595 Park&Trail Capital Projects - 240,620 96,548 32,000 71,835 Facility Capital Projects - 58,516 25,384 - 43,497 - Admin Capital Projects 41,000 - 117,394 - 26,272 165,000 Total Operating Transfers Out $ 1,768,108 $ 3,760,211 $ 1,889,974 $ 2,986,909 $ 3,397,107 $ 1,435,000 Total Exp&Transfers Out $28,369,602 $28,178,050 $28,291,448 $44,824,075 $31,631,529 $43,663,221 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION TOTAL EXPENDITURES & TRANSFERS OUT - BY FUND TYPE FOUR YEARS PLUS BUDGET FY 2018/19 BUDGETED EXPENDITURES Internal Special Revenue Service Funds Debt Service Funds 7 9% Funds 1.996 --- 2.095 Trust& Agency Funds 2.3% General Fund CIP Funds 47.6% 38.3% FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2017/18 FY 2018/19 %of Expenditures By Fund Actuals Actuals Actuals Adjusted Actuals Adopted Total General Fund $19,882,349 $18,198,969 $19,203,452 $20,406,745 $19,389,791 $21,954,691 47.6% Special Revenue Funds 432,671 461,679 511,179 798,960 524,475 774,620 1.9% Internal Service Funds 2,178,896 2,281,460 2,388,641 3,365,393 2,726,047 3,579,129 7.9% Debt Service Funds 889,960 885,010 847,885 847,310 846,735 841,535 2.0% Trust&Agency Funds - - - - - 995,000 2.3% Capital Project Funds 3,217,619 2,590,721 3,450,314 16,418,758 4,747,375 14,083,246 38.3% Total Expenditures By Fund $26,601,494 $24,417,839 $26,401,471 $41,837,166 $28,234,422 $42,228,221 100.0% Operating Fund Transfers 1,666,098 2,017,656 1,620,648 1,872,909 1,872,909 1,270,000 CIP Fund Transfers 102,010 1,742,555 269,326 1,114,000 1,524,198 165,000 Total Expenditues&Transfers $28,369,602 $28,178,050 $28,291,445 $44,824,075 $31,631,529 $43,663,221 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. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION TOTAL REVENUES & TRANSFERS IN - BY CATEGORY FOUR YEARS PLUS BUDGET FY 2018/19 BUDGETED REVENUES Property Tax OUR 114,77(,998 Sales&Use Tax I,0D0,000 Franchise Fee Tax 2,275,0 Transient Occupancy Tax 350,00 Business/Other Taxes 580,060 Fees,licenses&Permits 1,724,150 Intergovernmental 508,862 Charge for Services 2,536, 98 Interest Income 262,000 Rental Income 410,60 Other Sources 323,91 Internal Service Charges Rq 2,84 ,000 Capital Improvements ,317,285 0011, °° 6.°°° °° sA°° °° goo tia�°°PIP ti6 fl°°p°° FY 2014/1S FY 201S/16 FY 2016/17 FY 2017/18 FY 2017/18 FY 2018/19 %of Revenues by Category Actuals Actuals Actuals Adjusted Actuals Adopted Total Property Tax $11,889,552 $12,937,839 $ 13,719,617 $13,802,096 $14,752,397 $ 14,770,998 40.0% Sales Tax 1,224,427 1,189,398 1,185,035 1,150,000 1,124,647 1,050,000 2.8% Franchise Fee Tax 2,234,068 2,068,401 2,170,870 2,165,000 2,166,165 2,275,000 6.2% Transient Occupancy Tax 309,618 319,109 343,618 315,000 389,037 350,000 0.9% Business/Other Taxes 556,654 578,652 513,431 505,000 571,326 580,000 1.6% Intergovernmental 586,596 567,624 591,883 392,450 569,130 508,862 1.4% Fees,Licenses&Permits 1,409,199 1,544,844 1,500,843 1,407,400 2,217,962 1,724,150 4.7% Charge for Services 1,789,649 2,090,642 1,675,993 1,692,215 1,680,202 2,536,698 6.99/6 Interest Income 46,762 81,882 107,264 150,200 279,328 262,000 0.7% Rental Income 474,750 527,596 494,176 463,802 445,161 410,606 1.1% Other Sources 470,826 452,964 425,155 360,083 492,455 323,915 0.9% Ope rating Re ve nue s $20,992,101 $22,3S8,952 $22,727,886 $22,403,246 $24,687,810 $24,792,229 67.1% Internal Service Funds 2,495,000 2,670,836 2,750,000 2,850,000 2,850,000 2,840,000 7.7% Capitallmprovements 2,284,511 1,878,270 2,254,291 9,563,910 1,768,384 9,317,285 25.2% To tal Re ve nue s $25,771,612 $26,908,0S8 $27,732,177 $34,817,1S6 $29,306,19S $36,949,S13 100.0% Fund Transfers In 1,767,108 3,760,211 1,889,974 2,986,909 3,397,107 1,435,000 Total Rev&Transfers $27,606,149 $30,668,268 $29,622,1S1 $37,804,06S $32,703,302 $38,384,513 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION TOTAL EXPENDITURES & TRANSFERS OUT - BY CATEGORY FOUR YEARS PLUS BUDGET FY 2018/19 BUDGETED EXPENDITURES Salaries&Benefits 9,889,662 UAL Payment 1,0g01000 Materials&Supplies 728,982 Fees&Charges 2,255,2?8 Consultant&Contract.. 3,764,003 Sheriff Services 5,680,745 Community Grants&Events 283,479 Operating Grant Expenditures - Meetings&Training _ 173.790' Debt Service 841,535 Fixed Assets 683.600 Internal Service Charges 8 0,000 Capital Improvements 14,083,246 0� O1� FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2017/18 FY 2018/19 %of Expenditure Category Actuals Actuals Actuals Adjusted Actuals Adopted Total Salaries&Benefits $ 7,377,313 $ 7,669,503 $ 8,058,206 $ 8,717,468 $ 8,157,525 $ 9,889,662 23.4% UAL Payments 3,294,619 500,000 500,000 750,000 750,000 1,000,000 2.4% Materials&Supplies 357,664 378,414 448,564 595,390 408,052 728,982 1.7% Fees&Charges 1,663,773 1,648,500 1,782,748 1,959,579 1,703,118 2,255,228 5.3% Consultant&Contract Svcs 2,360,528 2,567,075 2,888,525 3,184,981 2,572,407 3,764,005 8.9% Sheriff Services 4,611,024 4,973,080 5,176,515 5,319,341 5,319,341 5,680,745 13.5% Meetings&Training 77,094 62,627 90,029 150,800 107,924 173,790 0.4% Community Grants&Events 162,516 202,525 222,127 252,751 233,336 285,429 0.7% Operating Grant Expenditures - 34,762 - - - - 0.0•1 Debt Service 889,960 885,010 847,885 847,310 846,735 841,535 2.0966 Fixed Assets 94,386 234,787 186,560 790,788 538,609 685,600 1.6% Operating Expenditures $20,888,876 $19,1S6,282 $20,201,160 $22,568,408 $20,637,047 $25,304,975 59.9% Internal Service Charges 2,495,000 2,670,836 2,750,000 2,850,000 2,850,000 2,840,000 6.7% Capital Improvements 3,217,619 2,590,721 3,450,314 16,418,758 4,747,375 14,083,246 33.4% Total Expenditures $26,601,494 $24,417,839 $26,401,474 $41,837,166 $28,234,422 $42,228,221 100.0% Operating Transfers Out 1,666,098 2,017,656 1,620,648 1,872,909 1,872,909 1,270,000 CIP Fund Transfers Out 102,010 1,742,555 269,326 1,114,000 1,524,198 165,000 Total Exp&Transfers Out $28,369,602 $28,178,0S0 $28,291,448 $44,824,075 $31,631,529 $43,663,221 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION GENERAL FUND REVENUES - BY DEPARTMENT FOUR YEARS PLUS BUDGET FY 2018/19 BUDGETED REVENUES Non- Departmental 80.3'% I City Manager's Public Safety Department 1.8% 0.1% Recreation& Facilities Public[Works Commumt-y Adnruustrative 3-8% 4 8% Development Services 8.9'% 0.2% 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 %of Departments Actuals Actuals Actuals Adjusted Actuals Adopted Total Council&Commissions $ 3,600 $ 600 $ 4,200 $ $ 100,600 $ - 0.0% City Manager's Department 934 401 21,400 3 25,150 0.1% Administrative Services 56,581 50,147 64,276 47,050 48,133 46,750 0.2% Community Development 2,095,113 2,258,530 1,980,624 1,973,350 2,343,010 1,995,280 8.9% Public Works 991,143 1,071,813 937,004 782,894 1,380,440 1,072,468 4.8% Recreation&Facilities 905,638 1,069,399 1,012,314 1,001,300 914,310 852,225 3.8% Public Safety 460,596 431,735 455,909 373,000 456,249 390,500 1.8% Non-Departmental 15,005,940 15,899,970 16,636,685 16,600,179 17,727,363 17,914,203 80.3% Total General Fund Rev $19,S19,S4S $20,782,S96 $21,112,412 $20,777,773 $22,970,107 $22,296,576 100.096 Fund Transfers In 267,918 55,384 32,000 442,198 GF Rev&Transfers In $19,519,S45 $21,050,S14 $21,167,796 $20,809,773 $23,412,305 $22,296,576 Use of Fund Balance Reserves: Carryforward Reserve 118,788 176,560 7,246 7,246 Development Reserve - 60,000 - - - - Environmental Reserve 50,000 50,000 50,000 50,000 50,000 50,000 CY CIP Reserve 1,633,345 1,777,896 1,410,648 1,872,909 1,872,909 1,270,000 CY CIP Reserve(UAL Pymt) 500,000 - - - - - I3illside Reserve - 210,000 (210,000) Fiscal Stability Reserve 1,000,000 - (Repayment) (500,000) (250,000) (250,000) Working Capital Reserve 930,184 - Total Sources $23,2S1,862 $22,864,970 $22,S88,444 $229739,928 $25,132,460 $23,616,S76 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET '. FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION GENERAL FUND EXPENDITURES - BY DEPARTMENT FOUR YEARS PLUS BUDGET FY 2018/19 BUDGETED EXPENDITURES Public Recreation& Works 27 4% Facilities 7.3% Community Development Public Safety 11.5% 27.3% Administrativ Services 7.3% City Non- Manager's Council& Departmental Department Commissions 11.8% 6.0% 1.3% 2014/1S 201S/16 2016/17 2017/18 2017/18 2018/19 %of Departments Actuals Actuals Actuals Adjusted Actuals Adopted Total Council&Commissions $ 160,023 $ 309,633 $ 227,655 $ 279,467 $ 182,662 $ 288,931 1.3% City Manager's Department 940,226 851,244 956,073 1,156,084 1,022,733 1,325,748 6.0% Administrative Services 1,290,046 1,352,648 1,373,060 1,485,175 1,421,262 1,609,710 7.3% Community Development 2,086,680 2,192,859 2,324,061 2,462,142 2,246,525 2,524,592 11.5% Public Works 4,948,538 5,059,055 5,389,996 5,703,339 5,560,509 6,019,955 27.4% Recreation&Facilities 1,363,426 1,474,777 1,573,142 1,497,947 1,292,453 1,598,968 7.3% Public Safety 4,859,379 5,225,854 5,443,759 5,671,061 5,705,157 6,003,634 27.3% Non-Departmental 4,234,030 1,732,899 1,915,706 2,151,530 1,958,490 2,583,153 11.8% Total General Fund Fxp $19,882,349 $18,198,969 $19,203,452 $20,406,745 $19,389,791 $21,9549691 100.0% Fund Transfers Out 1,666,098 2,017,656 1,620,648 1,872,909 1,872,909 1,270,000 GF Exp&Transfers Out $21,S48,447 $20,216,625 $20,824,100 $22,279,6S4 $21,262,700 $23,224,691 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION GENERAL FUND REVENUES - BY CATEGORY FOUR YEARS PLUS BUDGET FY 2018/19 BUDGETED REVENUES Property Tax 59.2% Other Sources Sales Tax 1.1% 4.7% Rental Income 1.8% Transient Interest Occupancy Tax 1.1% 1.6% Charge for Services Business& 6 9% Other Taxes Intergovt'1 2 6% Fees,Iicenses& 2.2% Permits Franchise Fee 7.7% Tax 11.0% FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2017/18 2018/19 %of Revenue Category Actuals Actuals Actuals Adjusted Estimated Proposed Total Property Tax $10,436,621 $11,301,176 $12,003,942 $12,110,800 $12,963,531 $13,189,900 59.2% Sales Tax 1,224,427 1,189,398 1,185,035 1,150,000 1,124,647 1,050,000 4.7% Transient Occupancy Tax 309,618 319,109 343,618 315,000 389,037 350,000 1.6% Business&Other Taxes 5S6,654 578,652 513,431 505,000 571,326 580,000 2.6% Franchise Fee Tax 2,234,068 2,235,514 2,356,539 2,349,429 2,338,794 2,462,000 11.0% Intergovernmental 586,596 547,075 584,480 372,000 S57,026 487,500 2.2% Fees,Licenses&Permits 1,409,199 1,544,844 1,500,843 1,407,400 2,217,363 1,724,1S0 7.7% Charge for Services 1,789,649 2,079,939 1,666,164 1,682,215 1,671,9S5 1,S31,698 6.9% Interest 45,229 79,341 102,787 147,500 270,929 254,500 1.1% Rental Income 474,750 527,S96 494,176 463,802 44S,161 410,606 1.8% Other Sources 452,734 379,952 361,396 274,627 420,339 256,222 1.2% Total Revenues $19,S19,S4S $20,782,S96 $21,112,412 $20,777,773 $22,970,107 $22,296,S76 100.0% Fund Transfers In 267,918 55,384 32,000 442,198 Total Revenues&Transfers $19,S19,S4S $21,050,S14 $21,167,796 $20,809,773 $23,412,305 $22,296,576 Use of Fund Balance Reserves: Carryforward Reserve 118,788 176,560 7,246 7,246 Development Reserve - 60,000 - - - - Environmental Reserve 50,000 50,000 50,000 50,000 50,000 50,000 CIP Reserve 1,633,345 1,777,896 1,410,648 1,872,909 1,872,909 1,270,000 CY CIP Reserve 500,000 - - - - - 1fi➢side Reserve - 210,000 (210,000) Fiscal Stability Loan 1,000,000 - Fiscal Stability(Repayment) (500,000) (2S0,000) (2S0,000) Working Capital 930,184 Total Operating Sources $23,251,862 $22,864,970 $22,588,444 $22,739,928 $25,132,460 $23,616,576 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION GENERAL FUND EXPENDITURES - BY CATEGORY FOUR YEARS PLUS BUDGET FY 2018/19 BUDGETED EXPENDITURES Community Grants&Events Fixed Assets 1.3% 0.1% Internal Services Meetings,Events, Charges Training 11.8% 0.7% Sheriff Services Salary&- 2 5.9% Benefits 38.1% Consultant& Contract Sernc 11.4% UAL Fees& Payment Charges Materials& 4.8% 4.3% Supplies 1.6% FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2017/18 2018/19 %of Expenditure Category Actuals Actuals Actuals Adjusted Estimated Proposed Total Salary&Benefits $ 6,484,653 $ 6,814,803 7,171,061 7,801,146 7,264,949 8,368,212 38.1% CalPERS UAL Payment 3,294,619 500,000 500,000 750,000 750,000 1,050,000 4.8% Materials&Supplies 195,949 207,649 248,600 339,090 246,785 340,770 1.6% Fees&Charges 732,387 835,636 939,859 854,840 788,811 950,634 4.3% Consultant&Contract Sex 1,966,367 2,115,325 2,322,212 2,297,280 2,034,666 2,506,280 11.4% Sheriff Services 4,611,024 4,973,080 5,176,515 5,319,341 5,319,341 5,680,745 25.9% Meetings,Events,Training 73,668 59,431 87,606 145,800 105,621 161,290 0.7% Community Grants&Even 162,516 202,525 222,127 252,751 233,336 285,429 1.3% Operating Grant Exp - 34,762 - - - - 0.0% Fixed Assets 35,343 - - 20,000 19,785 20,000 0.1% Internal Services Charges 2,325,823 2,455,758 2,535,472 2,626,497 2,626,497 2,591,332 11.8% Total Expenditures $19,882,349 $18,198,969 $19,203,4S2 $20,406,745 $19,389,791 $21,954,691 100.0% Fund Transfers Out 1,666,098 2,017,656 1,620,648 1,872,909 1,872,909 1,270,000 Total Exp&Transfers Out $21,548,447 $20,216,625 $20,824,100 $22,279,654 $21,262,700 $23,224,691 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION GENERAL FUND TAX REVENUE COMPARISONS CITIES OF SANTA CLARA COUNTY TAX REVENUE TOTAL AMOUNTS AND PER CAPITA ■Business License Tax ❑Transient Occupancy Tax []Sales Tax ■Property Tax Campbell Cupertino Gilroy Los Altos Los Altos Hills Los Gatos Milpitas Monte Sereno Morgan Hill Mountain View Palo Alto San Jose Santa Clara SARATOGA Sunnyvale S- $100 $200 $300 $400 $500 $600 $700 Property Tax Sales Tax • . City Population Amount Per capita Amount Per capita Campbell 42,584 12,075,059 284 14,818,496 348 4,439,668 104 683,445 16 Cupertino 60,550 17,680,000 292 20,360,000 336 5,072,000 84 1,600,000 26 Gilroy 54,777 11,468,510 209 17,884,735 327 1,676,691 31 607,803 11 Los Altos 30,671 18,197,491 593 3,195,628 104 2,608,368 85 520,687 17 Los Altos Bills 8,583 4,960,016 578 103,921 12 - - 212,927 25 Los Gatos 31,189 13,743,123 441 7,501,175 241 1,800,000 58 1,465,547 47 Milpitas 75,521 27,068,110 358 24,718,975 327 11,757,327 156 499,045 7 Monte Sereno 3,800 1,513,407 398 26,825 7 - - 37,446 10 Morgan Hill 43,645 10,023,019 230 9,437,549 216 2,275,882 52 190,756 4 Mountain View 77,925 39,460,578 506 21,401,425 275 6,590,636 85 244,731 3 Palo Alto 66,968 41,189,000 615 30,018,000 448 22,366,000 334 11,228 0 San Jose 1,042,000 263,299,000 253 201,797,000 194 41,125,000 39 50,864,000 49 Santa Clara 123,752 45,627,207 369 57,795,787 467 20,557,284 166 909,324 7 SARATOGA 30,219 11,301,176 374 1,189,398 39 319,109 11 365,170 12 Sunnyvale 149,8311 63,945,000 427 32,914,114 220 16,295,000 109 1,872,000 12 Average 122,8011 38,770,046 316 29,544,202 241 9,125,531 74 4,005,607 33 Note-Table contains FY 2015116 data as this is the most recent information available from neighboring cities CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 1 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION GENERAL FUND REVENUES 10 YEAR HISTORY AND PROJECTED KEY TAX REVENUES WProperty Tax ■Sales Tax ❑Occupancy Tax ■Business license Tax $16,000,000 $14,000,000 — <Yn: $12,000,000 $ao,00a,000 $8,000,000 $6,0007000 $4,0007000 $2,0007000 zoo71oa2ooSlo9 2uo9110 aoxoll' 2011-112 2,oI2113 2oi344 zoW'S 2oO16 zo16117 2017il.—20iBli,.. NOTE: Property Tax Revenue and Tax Equity Allocation-FY 2015116 Property Tax Revenues reflects the Is,year of the State's agreement to eliminate the remaining Tax Equity Allocation(TEA)higher ERAF withholding rate over a five year span. Beginning in FY 2015116,20%of the higher rate is eliminated, meaning the tax revenue difference is returned to the City -until the City's ERAF withholding formula is fully 100%assimilated. At FY 2015116, this 20%difference was calculated to be equivalent to an additional $130,000 of revenue. With continued property assessment growth,each 20%amount has an actual revenue growth trajectory increasing by both the additional 20%and the higher valuation each year. Property Sales LWOMPAIN11t I Summary of Change from Fiscal Year Tax Tax ax Re ve nue s Prior Year 2007/08 Actuals $ 7,922,815 $ 1,057,977 $ 211,532 "$ 290,996 9,483,320 4.5% 2008/09 Actuals $ 8,155,362 $ 1,043,034 $ 151,378 $ 321,347 9,671,121 2.0% 2009/10 Actuals $ 8,194,364 $ 954,574 $ 144,151 $ 303,990 9,597,079 (0.8%) 2010/11 Actuals $ 8,026,659 $ 990,579 $ 184,362 $ 310,273 9,511,873 (0.9%) 2011/12 Actuals $ 8,279,947 $ 1,100,489 $ 205,421 $ 313,984 9,899,841 4.1% 2012/13 Actuals $ 8,966,396 $ 1,051,121 $ 228,199 $ 336,298 10,582,014 6.9% 2013/14 Actuals $ 9,526,189 $ 941,350 $ 257,010 $ 336,911 11,061,460 4.5% 2014/15 Actuals $ 10,436,621 $ 1,224,427 $ 309,618 $ 357,597 12,328,263 11.5% 2015/16 Actuals $ 11,301,176 $ 1,189,398 $ 319,109 $ 365,710 13,175,393 6.9% 2016/17 Actuals $ 12,003,942 $ 1,185,035 $ 343,618 $ 343,442 13,876,037 5.3% 2017/18 Actuals $ 12,963,531 $ 1,124,647 $ 389,037 $ 377,106 14,854,321 7.1% 2018/19 Budgeted $ 13,189,900 $ 1,050,000 $ 350,000 $ 375,000 14,964,900 0.7% CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION GENERAL FUND FUND BALANCE ACTIVITY Estimated Plus Less Sources Estimated 7/1/2018 Transfers Transfers (Uses)of 6/30/2019 General Fund Reserves: Balance Revenues In Expenditures Out Fund Balance Balance Restricted Environmental Services 213,182 (50,000) 163,182 Committed Hillside Stability 1,000,000 - 1,000,000 Assigned Capital Reserve 1,349,623 (1,270,000) 2,818,702 2,898,325 Facility Reserve 2,200,000 500,000 2,700,000 Carryforwards 155,264 (155,264) - Unassigned Working Capital Reserve 1,000,000 1,000,000 Fiscal Stability Reserve 3,150,000 3,150,000 Development Services - - Compensated Absences 247,146 247,146 Other Unassigned 3,818,702 22,296,576 (21,954,691) (3,113,438) 1,047,149 Total GF Reserves: 13,133,917 $22,296,S76 $ $(21,954,691) $(1,270,000) - $ 12,205,802 GENERAL FUND Reserve Activity includes: Fund Balance Reserves reflect the cumulative effect of revenues and other financing sources over expenditures and other financing uses. Restricted Fund Balance- represents legal restrictions and obligations; Committed Fund Balance- represents Council directed funding for a specific and binding use; Assigned Fund Balance- represents resources that reflect the City's intended use of funds Unassigned Fund Balance -estimated year-end fund balance not previously identified for a specific purpose,and therefore available to buffer unplanned financial situations during the fiscal year. Environmental Reserve accounts for prior year funding obligated for use in the Environmental program-as originally collected under the City' former solid waste agreement.To comply with this objective,$50,000 of supplemental funding is utilized to support the Environmental program each fiscal year. I1illside 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. Carryforward Reserves reflects an estimate of prioryear unspent General Fund budget appropriations to be re-appropriated for the same purpose and paid for in the next fiscal year. Working Capital Reserve ensures sufficient cash flow funding for the General Fund. The reserve was revised to$1,000,000 effective with the 2016117 fiscal year. Fiscal Stability Reserve of$2,500,000 was augmented with the close-out of the Development Reserve at FY 2017118 year-end. The Development Reserve funding was to be used in the same manner of the Fiscal Stability Reserve,but with speicificity to maintain fiscal stability in the Development program. City Council directed that the two reserves be combined under the broader purpose of maintaining fiscal stability for citywide operations. The reserve may also 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. 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. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION SCHEDULE OF INTERFUND TRANSFERS Actuals Actuals Budgeted Budgeted 2017/18 2017/18 2018/19 2018/19 Fund Description Transfers In Transfers Out Transfers In Transfers Out General Funds General Fund 442,198 1,872,909 1,270,000 Special Revenue Funds Landscape&Lighting Districts - - - Internal Service Funds Risk Management/Liability Insurance Workers Compensation Office Support Services Information Technology Services Equipment Maintenance Building Maintenance Vehicle&Equipment Replacement IT Equipment Replacement Facility Furniture&Equip Replacement - - Capital Project Funds Street Projects 2,276,000 1,382,595 832,000 Parks&Trail Projects 545,000 71,835 100,000 Facility Projects - 43,497 378,000 - Administrative Projects 133,909 26,272 125,000 165,000 Total Interfund Transfers $ 3,397,107 $ 3,397,107 $ 1,435,000 $ 1,435,000 FY 2018119 Interfund Transfers In Transfers In of$1,435,000 are comprised of.• 1. $832,000 to Streets CIP Projects Funds 2. $100,000 to Park&Trail CIP Projects Funds 3. $378,000 to Facility CIP Projects Funds 4. $125,000 to Administrative&Technology CIP Projects Funds FY 2018119 Interfund Transfers Out Transfers Out of$1,435,000 are comprised of- 1. $1,270,000 from General Fund 2. $165,000 from Administrative&Technology CIP Project Funds FY 2017118 Interfund Transfers In Transfers In of$3,397,107 are comprised of- 1. $442,198 to General Fund 2. $2,276,000 to Streets CIP Project Funds 3. $545,000 to Park&Trail CIP Project Funds 4. $133,9090 to Administrative&Technology CIP Project Funds FY 2017118 Interfund Transfers Out Transfers Out of$3,397,107 are comprised of. 1. $1,872,909 from the General Fund 2. $1,382,595 from Streets CIP Project Funds 3. $71,835 from Park&Trail CIP Project Funds 4. $43,497 from Facility CIP Project Funds 5. $26,272 from Administrative&Technology CIP Project Funds CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION TOTAL FUND BALANCE ACTIVITY FY 2018/19 7/1/2018 Plus Plus Less Less Sources 6/30/2019 Est Beg Revenues& Transfers Exp& Transfers (Uses)of Est Ending Balance Carryfwds in Carryfwds Out Fund Bal Balance General Fund Restricted Environmental Services 213,182 (50,000) 163,182 Committed Flillside Stability 1,000,000 - 1,000,000 Assigned Capital Project Reserve 1,349,622 (1,270,000) 2,818,703 2,898,325 Facility Reserve 2,200,000 S00,000 2,700,000 Carryforwards 155,264 (155,264) - Unassigned Working Capital Reserve 1,000,000 1,000,000 Fiscal Stabilization Reserve 3,150,000 3,150,000 Development Services - - Compensated Absences 247,146 247,146 Other Unassigned 3,818,703 22,296,576 (21,954,691) (3,113,439) 1,047,149 Total General Fund $13,133,917 $ 22,296,S76 $ $ (21,9S4,691) $(1,270,000) $ $12,205,802 Other Unassigned Fund Balance Reserves reflect the operating budgets ongoing revenues,expenditures,carryforwarA 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 2xx Landscape&Lighting Dist. 1,385,339 684,251 (774,620) 1,294,970 Total Special Revenue Funds $ 1,38S,339 $ 684,251 $ S (774,620) $ $ $ 1,294,970 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 Liability/Risk Management 553,907 411,362 (570,100) 395,169 Workers Compensation 297,374 185,000 (225,488) 256,886 Office Support Fund 116,964 50,000 (59,850) 107,114 1T Services 364,264 585,000 (637,801) 311,463 Vehicle&Equip Maintenance 236,333 275,000 (272,422) 238,911 Facility Maintenance 515,785 925,000 (944,018) 496,767 Vehicle&Equip Replacemen 517,948 150,000 (311,800) 356,148 rF Equipment Replacement 423,729 150,000 (191,250) 382,479 Facility HE Replacement 420,814 200,000 (366,400) 254,414 Total Internal Service Funds $ 3,447,118 $ 2,931,362 $ $ (3,579,129) $ $ $ 2,799,351 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 GO Bond Debt Service 997,7S6 725,039 (841,535) 881,260 Total Debt Service Funds $ 997,7S6 $ 72S,039 $ $ (841,S3S) $ $ $ 881,260 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 • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION TOTAL FUND BALANCE ACTIVITY FY 2018/19 Plus Plus Less Less Source& 6/30/2019 7/1/2018 Revenues& Transfers Expenditures& Transfers (Use)of Estimated Balance Carryforwards In Carryforwards Out Fund Bal Balance Trust&Agency Funds West Valley Clean Water JPA 995,000 (995,000) Total Trust&Agency Funds $ $ 99S,000 $ $ (99S,000) $ $ $ The City holds an agency fund for the West Valley Clean Water Program Authority. This funds earn interest on their fund balance at the City' investment rates. Capital Improvement Plan Funds Street Projects 1,459,586 8,704,269 832,000 (10,995,856) - Parks&Trails Projects 1,199,231 421,015 100,000 (1,714,182) 6,064 Factlity Projects 136,104 62,000 378,000 (S41,103) 3S,000 Administrative Projects 742,105 130,000 125,000 (832,105) (165,000) - Total Capital lmprFunds $ 3,S37,026 $ 9,317,28S $1,43S,000 $ (14,083,247) $ (165,000) $ $ 41,064 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. FUND BALANCE TOTALS $22,S01,IS6 $ 36,949,S13 $1,435,000 $ (42,228,222) $(1,435,000) $ - $17,222,446 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION FUND BALANCE RESERVES S YEAR COMPARATIVE HISTORY 6/30/201S 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Actual Actual Actual Estimated Budgeted Fund Balance Reserves YE Balance YE Balance YE Balance YE Balance YE Balance General Fund Restricted Environmental Services 363,182 313,182 263,182 213,182 163,182 Committed Hllside Stability 1,000,000 1,000,000 790,000 1,000,000 1,000,000 Assigned Capital Project Reserve 1,657,896 1,472,408 1,564,589 1,349,622 2,898,325 Facility Reserve 900,000 1,200,000 1,700,000 2,200,000 2,700,000 Carryforwards 176,560 28,086 7,246 155,264 - Unassigned Working Capital Reserve 2,007,545 1,000,000 1,000,000 1,000,000 1,000,000 Fiscal Stabilization Reserve 1,000,000 2,250,000 2,500,000 3,150,000 3,150,000 Development Services 713,891 719,562 719,562 - - Compensated Absences 208,167 209,937 223,988 247,146 247,146 Other Unassigned 1,779,490 2,447,445 2,215,744 3,818,703 1,047,149 Total General Fund Reserves $ 9,806,731 $109640,620 $10,984,311 $13,133,917 $12,205,802 Special Revenue Funds Landscape&Lighting Districts 867,643 1,005,791 1,152,869 1,385,339 1,294,970 Total Special Revenue Funds $ 867,643 $ 1,005,791 $ 19152,869 $ 1,385,339 $ 1,294,970 Internal Service Liability/Risk Management 291,264 376,488 504,480 553,907 395,169 Workers Compensation 314,525 304,401 294,052 297,374 256,886 Office Support Services 75,075 96,172 109,805 116,964 107,114 IT Services 260,322 274,223 308,073 364,264 311,463 Vehicle&Equipment Maintenance 115,564 165,949 176,908 236,333 238,911 Facility Maintenance 268,326 370,717 454,604 515,785 496,767 Vehicle&Equipment Replacement 649,498 611,708 585,986 517,948 356,148 IT Equipment Replacement 194,101 274,339 315,299 423,729 382,479 Facility HE Replacment - 339,222 498,369 420,814 254,414 Total Internal Service Reserves $ 2,168,675 $ 2,813,219 $ 3,247,577 $ 3,447,118 $ 2,799,351 Debt Service 2001 Series Library GO Bonds 906,600 922,952 959,322 997,756 881,260 Total Debt Service 906,600 9229952 959,322 997,756 8819260 Trust&Agency West Valley Clean Water Program - - Total Trust&Agency Reserves - - - - OPERATING BUDGET RESERVES $13,749,649 $IS,382,S82 $16,344,078 $18,964,130 $17,181,382 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1. FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION FUND BALANCE RESERVES S YEAR COMPARATIVE HISTORY 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Actual Actual Actual Estimated Budgeted Fund Balanc a Re se rve s YE Balance YE Balance YE Balance YE Balance YE Balance Capital Project Funds Street Project Funds 1,904,296 2,720,317 3,091,458 1,459,585 - Park&Trail Project Funds 1,238,992 1,082,410 1,053,733 1,199,231 6,064 Facility Improvement Funds 347,619 245,639 252,802 136,104 35,000 Administrative Project Funds 367,870 667,699 687,313 742,105.00 - Total Capital Projects Funds 3,858,777 4,716,065 5,085,306 3,537,025 41,064 TOTAL RESERVES $17-608,426 $20,098,647 $21,429,384 $22,501,155 $17,222,446 GRAPHIC REPRESENTATION OF GENERAL FUND AND TOTAL OF ALL FUNDS 5 YEAR FUND BALANCE HISTORY, BUDGET YEAR, AND 5 YEAR TREND PROJECTION +General Fund Balance (Total All Fund Balance 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 '0�' tk 16,0 5 T���y�6 iQ"6}�z ���� �o����a�o�9}2a���oy2��o�1}zz tl ' Note-In the above graph,the FY 2018119 fund balance(in white)and five years forward reflect full expenditure of the Capital Budget in the first budget year, thereby causing a steep drop and a continued zero balance from that point forward. The full appropriation of the capital project budget allows for full encumbrance and completion of the projects during the fiscal year, although full expenditure is not expected to occur, and project balances will carry forward into the following fiscal year. While actual total fund balance growth has averaged 3.3%over the last ten years, future year projections represent a conservative operating and capital budget with a 1%minimal growth in outlaying year's fund balances. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION DEPARTMENT REVENUES BY PROGRAM FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2017/18 FY 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted Council&Commissions General Fund Proarams: City Council $ 3,600 $ 600 $ 4,200 $ $ 100,600 $ City Commissions - - - - Total Council&Commissions $ 3,600 $ 600 $ 4,200 $ $ 100,600 $ City Manager's Department General Fund Proarams: City Manager's Office 800 400 - - City Clerk 134 1 21,400 3 25,150 Public Information Office - - - - Total City Manager's Dept $ 934 $ 401 $ 21,400 $ - $ 3 $ 25,150 Administrative Services Department General Fund Proarams: Finance 56,581 50,147 49,041 47,050 48,133 46,750 Human Resources - - 15,235 - - - Administrative Services - - - - - - Internal Service Funds: Office Support Services 68,183 65,703 59,868 60,000 58,248 50,000 Information Technology Services 430,803 481,485 531,058 580,600 588,530 585,000 IT Equipment Replacement 65,000 125,000 125,000 150,000 150,000 150,000 Total Finance &Admin.Svcs $ 620,567 $ 722,334 $ 780,203 $ 837,650 $ 844,911 $ 831,750 Community Development General Fund Proarams: Development Services 533,310 485,150 477,961 482,200 483,546 408,080 Advanced Planning 156,165 191,186 179,999 160,000 256,850 180,000 Code Compliance 10,725 9,875 10,432 9,300 12,885 11,400 Building&Inspection Services 1,394,913 1,572,319 1,312,232 1,321,850 1,589,729 1,395,800 Total Community Developmt $ 2,095,113 $ 2,258,530 $ 1,980,624 $ 1,973,350 $ 2,343,010 $ 1,995,280 Public Works Department General Fund Proarams: General Engineering 218,070 182,716 239,185 200,250 608,819 400,250 Development Engineering 139,654 311,073 112,712 71,600 165,759 77,000 Environmental Services 191,790 196,386 213,783 204,429 211,088 207,000 Streets&Storm Drains 186,633 194,781 194,447 122,000 193,524 190,000 Parks&Landscape Maintenance 254,995 186,857 176,877 184,615 201,250 198,218 Internal Service Funds: Vehicle&Equipment Maintenance 300,000 275,003 275,000 275,000 275,000 275,000 Vehicle&Equipment Replacemer 206,393 163,565 123,000 150,000 177,531 150,000 Special Revenue Fund: Landscape&lighting Districts 566,483 599,827 658,256 721,723 756,946 684,251 Total Public Works Departmt $ 2,064,018 $ 2,110,208 $ 1,995,260 $ 1,929,617 $ 2,589,917 $ 2,181,719 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION DEPARTMENT REVENUES BY PROGRAM FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2017/18 FY 2018/19 Actuals Actuals Actual Adjusted Actuals Adopted Recreation&Facilities Department General Fund Programs: Recreation Services $ 603,570 $ 627,245 $ 581,731 $ 606,000 $ 520,112 $ 497,000 Teen Services 1,500 2,066 3,432 3,500 9,808 6,800 Facility Rentals 300,567 440,088 427,152 391,800 384,390.45 348,425 Internal Service Funds: Facility Maintenance 882,299 906,440 934,424 925,000 930,759 925,000 Facility FFE Replacement - 200,000 200,000 200,000 200,000 200,000 Total Recreation Departmt $ 1,787,937 $ 2,175,839 $ 2;1469 738 $ 29126,300 $ 2,045,069 $ 1,977,225 Public Safety General Fund Programs: Public Safety Services 460,576 431,560 455,909 373,000 411,332 390,500 Emergency Preparedness 20 175 - - 44,917 - Total Public Safety $ 460,596 $ 431,735 $ 455,909 $ 373,000 $ 456,249 $ 390,500 Non-Departmental General Fund Programs: General Administration 15,000,920 15,897,465 16,542,650 16,600,179 17,725,378 17,914,203 Legal Services 20 - 40 - 120 - Community Grants - - - - Community Events 5,000 2,506 - - Emergency Operations - - 93,995 - 1,865 - Intemal Service Funds: Risk Management/Liability 399,482 343,808 392,699 410,450 359,587 411,362 Workers Compensation his 217,567 185,000 179,954 185,000 185,934 185,000 Debt Service Funds 2001 Bond Debt Service Fund 898,774 901,362 884,255 817,700 885,169 725,039 Trust&Agency Funds West Valley Clean Water JPA - - - - - 995,000 Total Non-Departmental $16,5219764 $17,330,140 $18,0939591 $18,013,329 $19,158,053 $20,230,604 Capital Improvement Funds Capital Imyrovement Programs: Street Projects 1,771,339 1,206,299 1,868,961 8,447,218 1,407,099 8,704,269 Park&Trail Projects 311,143 493,047 23,685 821,015 138,170 421,015 Facility Projects 38,580 40,371 224,530 165,676 81,702 62,000 Administrative&Technology 163,928 138,552 137,115 130,000 141,412 130,000 Total Capital Impr Projects $ 2,284,991 $ 1,878,270 $ 2,254,291 $ 9,563,910 $ 1,768,384 $ 9,317,285 Operating Transfers In General Fund - 267,918 55,384 32,000 442,198 FFE Replacement Fund - 180,000 - - - - Capital Projects -Streets 731,010 2,450,555 1,305,000 2,276,000 2,276,000 832,000 Capital Projects -Parks/Trails 443,445 378,380 171,548 545,000 545,000 100,000 Capital Projects -Facilities 472,653 153,896 190,648 - - 378,000 Capital Projects -Admin/Tech 120,000 329,462 167,394 133,909 133,909 125,000 Total Operating Transfers In $ 1,767,108 $ 3,760,211 $ 1,889,974 $ 2,986,909 $ 3,397,107 $ 1,435,000 Total Revenues and Transfers Ir $27,606,629 $30,668,268 $29,622,190 $37,804,065 $32,703,302 $38,384,513 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1' FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION DEPARTMENT EXPENDITURES BY PROGRAM FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2017/18 FY 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted Council&Commissions General Fund Programs: City Council $ 129,132 $ 278,794 $ 188,067 $ 216,605 $ 144,973 $ 223,722 City Commissions 30,891 30,840 39,589 62,863 37,689 65,208 Total Council&Commissions $ 160,023 $ 309,633 $ 227,655 $ 279,467 $ 182,662 $ 288,931 City Manager's Department General Fund Programs: City Manager's Office 569,824 527,923 449,212 564,534 545,512 607,659 City Clerk 370,402 323,321 395,717 372,744 286,371 449,499 Public Information Office - - 111,144 218,806 190,849 268,590 Total City Manager's Dept $ 940,226 $ 851,244 $ 956,073 $ 1,156,084 $ 1,022,733 $ 1,325,748 Administrative Services Department General Fund Programs: Finance Services 778,447 797,281 813,531 865,283 827,765 878,973 Human Resources 325,218 332,482 329,997 362,032 358,625 397,114 Administrative Services 186,382 222,885 229,531 257,860 234,872 333,623 Internal Service Funds: Office Support Services 46,229 44,606 46,235 71,750 51,090 59,850 Information Technology Service 432,550 467,583 497,208 613,850 532,339 637,801 IT Equipment Replacement 23,687 44,762 84,040 89,800 41,569 191,250 Total Administrative Services 1,792,513 1,909,600 2,000,542 2,2605575 2,0465260 2,498,611 Community Development General Fund Programs: Development Services 909,462 933,024 879,621 851,439 753,588 967,316 Advanced Planning 113,311 119,583 146,160 152,554 114,039 161,219 Code Compliance 127,653 161,859 195,952 240,974 209,808 289,441 Building&Inspection Services 936,255 978,393 1,102,328 1,217,175 1,169,090 1,106,616 Total Community De ve to pmt $ 2,086,680 $ 2,192,859 $ 2,324,061 $ 2,462,142 $ 2,246,525 $ 2,524,592 Public Works Department General Fund Programs: General Engineering 532,614 518,312 584,471 690,957 658,241 783,609 Development Engineering 194,320 227,645 232,146 240,967 217,919 297,804 Environmental Services 615,342 665,655 704,738 788,729 736,801 830,949 Streets&Storm Drains 1,454,269 1,447,110 1,636,003 1,658,802 1,620,130 1,643,830 Parks &Landscape Maint 2,151,993 2,200,334 2,232,638 2,323,884 2,327,418 2,463,763 Internal Service Funds: Vehicle&Equip Maintenance 220,785 224,618 264,042 259,832 215,576 272,422 Vehicle&Equip Replacement 65,775 201,355 150,722 260,800 245,569 311,800 Special Revenue Funds: Landscape&Lighting Districts 432,671 461,679 511,179 798,960 524,475 774,620 Total Public Works Dept $ 5,667,769 $ 55946,707 $ 6,315,939 $ 7,022,931 $ 6,546,128 $ 7,378,797 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET E FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION DEPARTMENT EXPENDITURES BY PROGRAM FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2017/18 FY 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted Recreation&Facilities Department General Fund Proarams: Recreation Services $ 940,097 $ 1,017,682 $ 1,005,302 $ 943,491 $ 807,764 $ 1,058,283 Teen Services 47,073 53,228 48,870 49,556 39,772 59,310 Facility Rentals 376,256 403,867 518,970 504,901 444,917 481,374 Internal Service Funds: Facility Maintenance 813,842 804,049 850,535 870,323 869,578 944,018 Facility FFE Replacement - 40,778 40,853 507,588 277,556 366,400 TotalRecreation&Facilities 2,177,268 2,319,604 2,464,530 2,875,858 2,439,587 2,909,386 Public Safety General Fund Programs: Public Safety Services 4,792,104 5,161,618 5,380,359 5,523,918 5,522,427 5,885,822 Emergency Preparedness 67,275 64,236 63,400 147,143 182,730 117,812 Total Public Safety 4,859,379 5,225,854 5,443,759 5,671,061 5,705,157 6,003,634 Non-Departmental General Fund Programs: General Administration 3,783,849 1,205,042 1,180,347 1,565,979 1,400,400 1,934,925 Legal Services 287,667 325,331 412,970 332,800 324,755 362,800 Community Grants 135,061 147,755 152,772 148,051 144,226 169,729 Community Events 27,455 54,770 69,356 104,700 89,110 115,700 Emergency Operations - - 100,261 - - - Internal Service Funds: Liability/Risk Management 391,344 258,585 264,706 498,685 310,160 570,100 Workers Compensation 184,683 195,124 190,303 192,765 182,611 225,488 Debt Service Fund: 2001 Bond Debt Service Fund 889,960 885,010 847,885 847,310 846,735 841,535 Trust&Aaencv Funds: West Valley Clean Water JPA - - - - - 995,000 Total Non-Departmental 5,700,019 3,071,617 3,218,600 3,690,290 3,297,997 5,215,277 Capital Improvement Program Capital Imtirovement Funds: Street Projects 2,261,620 1,397,415 2,772,822 12,732,677 3,932,377 10,995,855 Park&Trail Projects 544,470 787,389 127,362 2,351,382 465,837 1,714,182 Facility Projects 369,650 237,731 382,631 383,477 154,903 541,103 Administrative Projects 41,878 168,186 167,499 951,222 194,258 832,105 Total Capital hnpr Projects 3,2179619 2,590,721 39450,314 16,418,758 4,747,375 14,083,246 Operating Transfers Out General Fund 1,666,098 2,017,656 1,620,648 1,872,909 1,872,909 1,270,000 Capital Projects -Streets 61,010 1,443,419 30,000 1,082,000 1,382,595 - Capital Projects -Parks&Trails - 240,620 96,548 32,000 71,835 Capital Projects -Facilities - 58,516 25,384 - 43,497 - Capital Projects -Admin&Tech 41,000 - 117,394 - 26,272 165,000 Total Operating Transfe rs 1,768,108 3,760,211 1,889,974 2,986,909 3,397,107 1,435,000 Total Exp&Transfers Out 28,369,604 28,178,050 28,291,447 44,824,075 319631,529 43,663,221 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION 04 SARgT�� 1956 c�trfiaRN'P CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION STAFFING INFORMATION CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION SUMMARY OF EMPLOYEE SALARY & BENEFITS The City of Saratoga's total salary and benefit expenditures (exclusive of UAL) are budgeted at$9.9 million dollars in FY 2018/19, representing approximately 23.4% of total budgeted expenditures. Approximately $8.4 million or 85.0%of labor costs reside in the General Fund and represent 38.1% of the General Fund's budgeted expenditures. Annual labor increases from cost-of-living-adjustments(COLA),employee step increases, salary survey adjustments, and pension cost increases contributed to the rise in total labor costs, but the largest increase in labor costs is attributable to the West Valley Clean Water Program staff costs. The City is now acting as the Program's fiduciary agent,meaning approximately$1 million of revenues and expenses are now included in the City's budget; $485,000 of this is for labor costs. Organizational Changes A few staffing changes will impact the Community Development Department (CDD) and Public Works (PW) departments in FY 2018/19. With the turnover of a Plan Check Engineer and Sr. Planner positions, CDD will implement a minor reorganization. The vacant Sr.Planner position will be replaced with a Planner I position,and the other Sr.Planner position will shift from building program oversight to a more concentrated planning services focus. A Building Official position will replace the vacant Plan Check Engineer position. Additionally, the remaining .50 FTE of the Sr. Building Inspector/Engineer position will move from CDD to Engineering. This final shift to a 1.0 Engineer FTE in Public Works will allow for additional engineering duties in PW, as well as absorb a portion of the department's senior associate engineer's duties as he transitions to a Sr. Civil Engineer position. The new Sr. Civil Engineer will provide engineering and administrative supervisory oversight for the Engineering Division. Temporary staff funding was continued for a Sr. Project Manager in CDD for the FY 2018/19 budget, to assist the department with more complex projects and staff support for the Historic Preservation Commission. The part-time temporary GIS/Graphics Technician funding to assist with GIS implementation and graphical related assignments is to be replaced with contract services funding in FY 2018/19 due to the inability to retain part-time temporary GIS staff. Contingency contract services funding was also budgeted in CDD for ongoing plan check or building inspection services,as needed throughout the fiscal year. With planning and building workload demand at a steady but flattening pace, development-related services are expected to remain at current levels, and contract services only utilized if needed. Although there are a number of organizational changes planned in FY 2018/19, the overall FTE count will remain steady at 58 funded staff positions,with a total of 56.50 FTEs. (FTE total is reduced from 58 by 7 part-time positions.) 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 staff augmentation is typically utilized for landscape maintenance services, recreation and facility services, development services, and attorney services. The City finds that the contract arrangement with the Santa Clara County Sheriff's Office provides a cost-effective service with a higher level of police services than could be attained by in-house City funded resources. Dedicated Sheriff Officers and staff are assigned to the City, although personnel and services easily adjust as circumstances warrant. This beneficial arrangement provides for expertise in management,administrative,technical, and operational duties, as well as equipment,and communication resources integrated into the smaller city service level on a day-to-day basis. Saratoga's personnel costs have remained manageable through various long-term strategies. While neighboring cities raised Miscellaneous Employee benefits to an enhanced 2.5%or 2.7%@ 55 pension plan during economic bubbles, the City's employee benefit structure remained at the more sustainable 2%@55 pension plan. This lower benefit plan has and will continue to provide significant labor costs savings to the City of Saratoga in future years. Other cities will see their enhanced plans increase to almost double Saratoga's standard plan cost. Additionally, Saratoga does not provide retiree health benefits to employees,thereby eliminating another very costly liability that many cities are struggling under. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION 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 few employee layoffs,and three mandatory furlough days,the impact was minimal in comparison to our neighboring cities. Saratoga residents were provided a mostly consistent level of services during the FY 2009/10—FY 2012/13 recession. The added benefit of maintaining employee retention throughout these four financially difficult years added to institutional knowledge and efficient operations that continues today. Memorandums of Understanding Most 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 13 Public Work's Corporation Yard staff. Effective January 2016, the Saratoga Management Association,representing the four Department Directors,disbanded and are now classified as unrepresented,along with the City Clerk,Deputy City Manager,the Finance and HR Managers,the HR Technician, and the two Public Works Managers. The City Manager,also unrepresented,has a negotiated contract. Hourly(non- benefited,temporary)staff are not represented by associations. The two bargaining units entered into a four year MOU agreement effective through June 30,2019,and the Council provided a resolution to the unrepresented group approving compensation and terms of employment similar to the bargaining unit agreements. Wages Salaries are adjusted as defined by the MOUs or resolution,and typically provide cost of living adjustments based on the annual average for the 12 month period running from January 1 to December 31 of the U.S.Department of Labor, Bureau of Labor Statistics, "All Urban Consumers (CPI-U)" for the San Francisco-Oakland-San Jose region. 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. Health Insurance-The City contracts for health insurance through CalPERS,offering employees a choice of CalPERS offered medical plans. Although CalPERS, has substantial negotiating powers, health insurance premiums continue to increase each year. The 2015 MOU negotiations changed the medical insurance benefits to provide an$800 base contribution for Single employees,$1600 for Employee+One plans,and$2,080 for Employee+2 plans,beginning calendar year 2016. Per the MOU,the City's base increases by 50% of the average medical premium increase each future year,and employees must pay the remainder of the insurance premium. The City-paid maximum premium per calendar year is as follows: —Emrployee Employee MME1 +1 +2 or more 2016 1 800 1 1,600 2,080 2017 807 1,614 2,098 2018 816 1,632 2,122 2019 816 1,632 2,122 *Contribution amount remains the same in 2019 Other Insurance-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 • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION 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 Ca1PERS administered cost-sharing,multiple-employer pension plan benefit plan for employees. In pension plan structures, shifts in employee demographics have a bigger impact on smaller plans. Therefore, under Ca1PERS, if a city has fewer than 100 employees, the city is placed into a risk pool, rather than having its own plan, in order to reduce rate volatility. As a result, Saratoga's benefitted employees fall into a `Miscellaneous Employees'pension pool. City of Saratoga Council Members have the option to join the City's Ca1PERS pension plan, with three of the five currently electing to do so. Public safety services are contracted through Santa Clara County Sheriff's Office,meaning all Sheriff Office personnel belong to the County's pension account and their benefit costs are paid by the County. The County recovers salary and benefit costs through the contractual service fees. Pension Plan Tiers—For years, the City of Saratoga offered newly hired regular employees the "2% @55 pension plan benefit. In 2011,in wake of escalating costs,MOU negotiations established reduced pension benefits for future classic employees,meaning`Classic'Ca1PERS members hired on or after May 12,2012 go into a second tier Ca1PERS retirement package of 2%@60. Subsequently,the Public Employee Pension Reform Act(PEPRA) of 2012 established new defined benefit plans to lower pension benefit costs for all future California government employees. Per State law,effective January 1,2013, all `new' miscellaneous employee members shall be placed into a "2% @62" defined benefit plan (Tier 3). Additionally,Classic employees who have left CalPERS employment for six months or more lose their Classic status and must re-enter under the PEPRA tier. PEPRA employee pension plan benefits provide a 2%@62 pension, and is the City's Tier III plan. PEPRA also created three"new"Public Safety member formulas(2%@57,2.5%@57,and 2.7%@57). This impacts the County's Sheriff Office staff. At present,the majority of City of Saratoga employees still fall into the Tier 1,2%@55 risk pool plan,but this ratio is slowly changing with turnover and retirements. Currently,about 1/3 of City staff fall into one of the two reduced plan,and most of the Tier I and Tier II employees are expected to be retired in 25 years. Listed below is the pension tier breakdown since the changes began in FY 2011/12 as of July 11 each year. —WW Tier I Tier II Tier III Total Fiscal Year Vacancies Funded (2%@ 55) (2%@ 60) (2%@ 62) Positions 2011/12 54 � - - F 1 55 2012/13 53 F_ - - 53 2013/14 50 I ' 1 1 3 57 2014/15 48 4 5 57 2015/16 44 7 5 56 2016/17 41 9 3 4 57 2017/18 38 10 8 2 58 2018/19 37 8 10 3 58 Pension benefit costs-The City's payment of Ca1PERS 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%. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION Under the new 2% @62 plan rate, the Employee Contribution Rates are determined each year through an actuarial valuation,with the employee responsible for approximately 50%of the cost. The following chart shows a history of recent Saratoga's Employer Contribution Rates for the various risk pools. 2%@1990R 2%@60 -WE 2%@62 Fiscal Employer Employer Employer Year Contribution Rate ontribution Rate Contribution Rate FY 2010/11 11.863% FY 2011/12 12.856% 8.438% F FY 2012/13 13.031% 8.552% FY 2012/13 -Revised 11.040% 8.552% 6.70% FY 2013/14 11.603% 8.768% 6.70% FY 2014/15 12.330% 8.715% 6.70% FY 2015/16 9.353% 7.510% 6.730% FY 2016/17 9.558% 7.809% 6.93% FY 2017/18 9.599% 7.850% 6.908% FY 2018/19 10.152 8.346% 7.266% FY 2019/20 10.6% 8.8% 7.3% (projected) FY 2020/21 11.6% F9.6% 7.4% (projected) A couple 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. CaIPERS Changes Actuarial Changes - Employer rates are based on CalPERS' principle assumptions, including but not limited to an Investment Rate of Return and an Annual Payroll Growth Rate. Various agency-based factors such as number and age of employees,increases and decreases in employee FTEs and employee wages,and impacts from other agencies in the benefit plan pool are all contributing factors in the calculation. CalPERS actuarial assumptions were established based on the concept that the value of its stock, bonds and other holdings would generate income over the employees lifetime to fund the majority of the pension costs. In 2003, CalPERS adjusted the income growth rate to 7.75%a year on average as the 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 in many of the following fiscal years, CalPERS staff repeatedly requested the IRR be adjusted downward. In 2012,the CalPERS Board agreed to reduce 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%. Saratoga was fortunate; in the first year(FY 2013/14)rates increased by.6%,and in the second year,by.73%. The increases were lower than most other cities due to having stayed with the lower 2%@ 55 benefit plan,while other agencies enhanced their plans to 2.5 or 2.7%at 55. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION Rate Smoothing Policies—The severity of the economic downturn that began in 2008 severely impacted CalPERS portfolio's actuarial value of assets, which in turn prompted actuarial staff to adjust their existing methodology. Initially the remedy was a widening of the corridor through a smoothing policy that spread investment return impacts over a rolling 15 year period,and experience gains and losses over a rolling 30 year period. This methodology led to stabilized rates,but CalPERS quickly came to understand this policy would understate risk due to the slow progress to full funding. The impact from rolling the smoothing and amortization periods would lead to unknown rate peaks and a lack of transparency. With Governmental Accounting Standards Board's issuance of a new accounting standard that required 1) the reporting of actual pension liability, not just pension funding, and 2) favored closed periods without smoothing, CaIPERS approved a further change in their amortization and smoothing policy in April of 2013. The new policy had employers paying for annual gains and losses over a fixed 30 year period,with the increases or decreases in the direct rate spread over a 5 year period—the rates would then plateau for twenty years, and then ramp back down over the final 5 years. This methodology was intended to improve the funded status in the long term and significantly reduce the probability of employer contribution rates increasing by more than 5%of payroll in a single year. In addition,CalPERS separated the pension costs for current year liabilities (called the normal cost)from the actuarial assumption changes and prior year liabilities,(known as the UAL). This change was to provide better rate stability,and payment option for Cities. However,with the severe devaluing of CalPERS investments during the recession,CalPERS actuarial staff continued to state the IRR decrease was insufficient and asked for a further decrease to 7.25% In FY 2015/16, the CalPERS Board agreed to lower the rate over a long term plan that would allow very small decreases only in positive investment years. In FY 2016/17,CalPERS staff convinced the Board that this slowly decreasing IRR Rate plan was not sufficient to ensure CaIPERS remain sustainable. Subsequently, the Board agreed to lower the rate to 7% over a three step phase in(7.375%, 7.25% and 7.0%), with each step phased-in over five years—meaning the total phase in period would take seven years. The Board understood that the impact of the IRR change would be both financially substantial and detrimental to CalPERS agencies and offered this incremental change plan so agencies would have time to adjust to the increases. The downside to this phase-in policy is that the ramp-up period postpones payment and thereby incurs negative amortization,resulting in increased cost over the long-term. CalPERS also determined that the IRR rate would need to continue to be decreased, down to 6.5%in the future. Therefore,after the 7%phase-in is complete,CalPERS plans to make small,incremental decreases only in positive investment years in order to reduce financial impacts. In FY 2017/18,CalPERS announced another actuarial modification. The Board agreed that going forward,the annual Experience Gains and Losses would no longer by factored in over 30 years with a five year phase-in. Their plan now is to factor future year gains and losses in over a 20 years with a five year phase-in period. Together,these actions are expected to bring the CalPERS pension plans up to a safe and sustainable funding level within a shorter time frame. Actuarial Assumptions—As part of CalPERS' ongoing actuarial analysis, the various demographic assumptions are reassessed on a rotating basis. A review was conducted in 2013 and again in 2016 that revealed mortality,retirement age,and wage increase factors changed considerably,thereby impacting benefit costs. CalPERS standard practice is to amortize the Assumption Changes over 20 years rather than the 30 years they had used for investment impacts. As it stands now with the recent modification,all future year impacts will be amortized over 20 years. Even though the economic downturn and demographic updates have negatively impacted pension rates, the "Miscellaneous 2%at 55 Risk Pool" suffered less because the plan design was based on actuarially sound principles and experience data. 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 that used estimated—not realized factors. These higher benefit plans ultimately proved to be fiscally unsustainable,and as a result,will experience much larger PERS rate increases CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION in the coming years. Over time, all Ca1PERS defined contribution plans other than the new PEPRA plans will be phased out as"classic"employees leave the workforce. Summary- With the new amortization and smoothing policies and ever-changing actuarial assumptions, Saratoga's pension costs will continue to increase in the upcoming years. However, because the City has taken measures by paying down the Unfunded Accrued Liability and paying more than the annual required contribution UAL payment, the City's susceptibility to rate volatility was significantly decreased and the overall cost reduced. This proactive and fiscally responsible approach allows the City to better plan for and endure economic impacts during inevitable future economic downturns,and has contributed toward the City's efforts to operate under a financially sustainable strategy. PEMHCA Section 22892 of the Public Employees'Medical and Hospital Care Act(PEMHCA),establishes a minimum monthly employer premium contribution assessed on participating agencies who do not provide retiree health insurance but have City retirees that choose to continue their participation in Ca1PERS health plans. The employer contribution is adjusted annually by the board to reflect changes in the medical care component of the CPI-U. The minimum employer contribution is $133 for calendar year 2018, and$136 for calendar year 2019. The City includes this amount in the budget as an ongoing retiree cost, which currently amounts to approximately $25,000 per year for an estimated 16 participating retirees. Budgeted Salary and Benefits Labor cost projections are prepared using known data on current employees,current MOU provisions,and California Public Employees' Retirement System (Ca1PERS), medical, dental, vision, long-term disability, and life insurance premiums. In some years,these projections are predictable, and in others there is fluctuation, such as when MOUs expire and new MOU provisions are scheduled to be put into place. The City does not use a vacancy factor in salary projections as typically there is very little turnover, and most positions require temporary backfill or a quick recruitment process due to the City's limited staffing model. The majority of staff positions are at top step,and health insurance benefits are budgeted at the employee's current status under their chosen health insurance plan to provide more accuracy in the total salary and benefit costs. A payroll expense buffer is built into budgeted salary numbers to offset unknown cost impact which may occur during the fiscal year, and to fund terminations,turnover or disability backfill,PTO buyouts,excess overtime,and the Compensated Absences Reserve in compliance with policy,if needed 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. Summary of Cost Containment Measures Medical Insurance Measures: • Benefit savings comes from the insurance premium caps with 50%cost-sharing arrangement for future year cost increases. Pension Measures: • Effective with the 2011 MOUs,employees began paying the full 7%Ca1PERS employee contribution from their wages. • Effective May 12,2012,Tier II was implemented for new employees • Effective January 1,2013,Tier III was implemented for new PERS members Annual savings equals the difference between the pool-specific rates times the respective second and third tier payroll. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION TOTAL FUNDED POSITIONS BY DEPARTMENT 2014/15 2015/16 2016/17 2017/18 2018/19 Full Time Equivalents (FTE) Funded Funded Funded Funded Funded City Manager's Department City Manager 1.00 1.00 1.00 1.00 1.00 Deputy City Manager - - - 1.00 1.00 Exec Asst to CM/Deputy City Clerk 1.00 1.00 1.00 0.90 0.90 City Clerk 1.00 1.00 1.00 1.00 1.00 Administrative Analyst 1/11 1.00 1.00 1.00 1.00 1.00 TOTAL FTE's 4.00 4.00 4.00 4.90 4.90 Administrative Services Department Administrative Services Director 1.00 1.00 1.00 1.00 1.00 Finance Manager 1.00 1.00 1.00 1.00 1.00 Accountant 1/II 0.90 0.90 0.90 0.90 0.90 Accounting Technician/Lead 3.00 3.00 3.00 3.00 3.00 Human Resources Manager 1.00 1.00 1.00 1.00 1.00 Human Resources Technician 0.75 0.75 0.75 0.75 0.75 Information Technology Administrator 1.00 1.00 1.00 1.00 1.00 Information Technology Technician 1.00 1.00 1.00 1.00 1.00 TOTAL FTE's 9.65 9.65 9.65 9.65 9.65 Community Development Department Community Development Director 1.00 1.00 1.00 1.00 1.00 Senior Planner 1.00 1.00 2.00 2.00 1.00 Planner I/II 2.00 2.00 1.00 1.00 2.00 Plan Check Engineer 1.00 1.00 1.00 1.00 - Senior Arborist 1.00 1.00 1.00 1.00 1.00 Sr.Building Inspector/Plan Checker 1.00 1.00 1.00 - - Associate Engineer - - - 0.50 - Building Inspector 2.00 2.00 2.00 2.00 2.00 Permit Technician 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Office Specialist III 1.00 1.00 1.00 1.00 1.00 Code Compliance Officer - - 1.00 1.00 1.00 TOTAL FTE's 12.00 12.00 13.00 12.50 12.00 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 Associate Engineer 1.00 1.00 1.00 L50 1.00 Administrative Analyst I/II 0.90 0.90 0.90 0.90 0.90 Administrative Technician 0.90 0.75 0.75 0.75 0.75 Office Specialist WM 1.75 1.00 1.00 1.00 1.00 Parks Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Parks Maintenance Lead 1.00 2.00 2.00 2.00 2.00 Parks Maintenance Worker 1/II/III 6.00 5.00 5.00 5.00 5.00 Street Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Street Maintenance Lead 2.00 2.00 2.00 2.00 2.00 Street Maintenance Worker 1/II/III 4.00 4.00 4.00 4.00 4.00 TOTAL FTE's 20.65 20.65 20.65 21.15 21.65 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION TOTAL FUNDED POSITIONS BY DEPARTMENT 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Funded Recreation&Facilities Department Recreation&Facilities Director 1.00 1.00 1.00 1.00 1.00 Recreation Manager - - - - 1.00 Recreation Supervisor 1.00 0.90 1.90 1.00 - Recreation Coordinator-Lead - - - 0.70 0.70 Recreation Coordinators 2.00 1.85 0.85 2.00 2.00 Facility Coordinator 0.60 0.60 0.60 0.60 0.60 Office Specialist W111 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 VII/III 2.00 1.00 1.00 1.00 1.00 TOTAL FTE's 9.60 8.35 8.35 8.30 8.30 TOTAL STAFF FTEs 55.90 54.65 55.65 56.50 56.50 FUNDED HOURLY STAFFING BY DEPARTMENT 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Funded City Manager's Department CMOlntern 320 - - 320 Executive Assistant(backfill) 136 750 960 96 Administrative Services Department HR Intern 320 - - - Graphics Assistant - 150 Community Development Department Office Specialist 111 800 940 - - Planning Intern 320 480 320 - 348 Project Manager - - 1,335 960 960 GIS/Graphics Technician 499 - Public Works Department Engineering Inspectors 2,760 2,760 2,760 1,840 1,840 Maintenance Worker - 999 999 999 999 GIS/Graphics Technician - 320 500 - Executive Assistant - - - 864 960 Recreation&Facilities Department Facility Attendents 1,750 1,900 1,900 2,949 2,949 Recreation Leaders 3,300 2,178 2,004 2,178 2,178 Graphic Design Assistant - 850 - - - Student Intern 480 - - 348 Asst Recreation Coordinator - - 1,000 280 - TOTAL ANNUAL HOURS 9,706 11,487 11,598 11,485 10,582 Temporary Hours converted to FTEs 4.67 5.52 5.58 5.52 5.09 TOTAL FTE's 60.57 60.17 61.23 62.02 61.59 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION STAFFING BY DEPARTMENT FIVE YEAR HISTORY 6o 50 0 ?0 l _n to 2014/15 2015/i6 20i6/1L7 2017/18 2o18/i9 e City Manager's Department ❑Administrative Services ■Commmuty Development ■Public Works Department ■Recreation&Fac[lities Department City Staff 2014/15 201S/16 2016/17 2017/18 2018/19 FULL TIME EQUIVALENTS(FTE'S) Funded Funded Funded Funded Funded City Manager's Department 4.00 4.00 4.00 4.90 4.90 Administrative Services 9.65 9.65 9.65 9.65 9.65 Community Development 12.00 12.00 13.00 12.50 12.00 Public Works Department 20.65 20.65 20.65 21.15 21.65 Recreation&Facilities Department 9.60 8.35 ' 8.35 8.30 8.30 TOTAL STAFF BY DEPARTMENT 55.90 54.6S S5.65 56.50 56.S0 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION STAFFING BY FUND FIVE YEAR HISTORY GiJ �tJ 0 30 10 0 ❑Internal Service Funds ®General Fund City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL TIME EQUIVALENTS(FTE'S) Funded Funded Funded Funded Funded General Fund City Manager's Department 4.00 4.00 4.00 4.90 4.90 Administrative Services 7.35 7.35 7.35 7.35 7.35 Community Development 12.00 12.00 13.00 12.50 12.00 Public Works 19.95 19.95 19.95 20.45 20.95 Recreation&Facilities Dept 5.65 5.20 5.20 5.30 5.30 Total General Fund FTEs 48.95 48.50 49.50 50.50 50.50 Internal Service Funds City Manager's Department - - - - - Administrative Services 2.30 2.30 2.30 2.30 2.30 Public Works 0.70 0.70 0.70 0.70 0.70 Recreation Department 3.95 3.15 3.15 3.00 3.00 Total Internal Service Funds 6.95 6.15 6.15 6.00 6.00 TOTAL FTE's 55.90 54.65 55.65 56.50 56.50 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION 1956 c�trfiaRN'P CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION MAJOR REVENUE INFORMATION CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION MAJOR REVENUE SOURCES FIVE YEAR HISTORY - ONE YEAR PROJECTION The City of Saratoga receives revenues from various funding sources that flow into operations and infrastructure improvements. Primary revenues include property tax,sales tax,building permits,business licenses,and service fees. Other revenue types include facility rental fees,revenues from governmental agencies(known as intergovernmental revenues), special district assessment payments and assorted operating and capital grants. The City's revenues are used for the administration of the city,for community services,and for infrastructure maintenance and improvement. The amount of revenues therefore, determines the level and types of operational services that a government can provide to their community. One analytical tool used in the revenue projection process is the City's five year financial forecast for the General Fund. This forecast is developed early in the budget process by analyzing key factors such as prior year receipts, trending, and historical correlation, as well as broader economic trends and local economic data for housing prices, market turnover,unemployment reports,and related local,state,and national reports and legislation. Emerging local trends are identified by analyzing the City's financial data in conjunction with information received from the State, County, various agencies, municipal finance groups, and from staff s practical expertise and judgment. Together, these factors help to project revenues for the upcoming fiscal year, and are adjusted throughout the process as new information becomes available. For FY 2018/19,the City of Saratoga's Operating Budget revenues are projected to total$26.7 million, of which the majority($22.3 million)of this revenue resides in the General Fund. Capital Budget Revenues and Transfers-In total $10.0 million,bringing total budgeted revenues to$36.7 million for the fiscal year. Outside of the General Fund,Operating Budget revenues consist primarily of Internal Service Funds service charges (approximately $2.9 million). As this revenue is derived from internal billings to the City's organization and established for cost recovery accounting purposes and therefore not true revenue,these chargebacks are not included as a revenue category in the following analysis. Other non-General Fund Operating Budget revenues include General Obligation Bond Debt Service assessments and Special Revenue property tax assessments from Landscape&Lighting Districts. Capital Budget revenue includes all outstanding grant awards that are formally obligated to Saratoga for capital projects,and which may or may not be received in the current budget year but are included to validate budgeted project expenditures. The net effect of this project budgeting method is to overstate both revenue and expenditure budget as many capital projects represent multi-year appropriations. Major Revenues are categorized by fund type in the following discussion: General Fund Operating Revenues,Non- General Fund Operating Revenues,and Capital Project Revenues. GENERAL FUND "OR REVENUES Each of the following Major Revenue sources include a description of the revenue,the underlying assumptions that the revenue estimates are based on, and current revenue trends. The accompanying charts illustrate five years of receipts in the darker color bars starting on the left side,with the projected budget year amount in a speckled bar on the far right. Property Tax Property tax is imposed on real property(land and permanently attached improvements such as buildings)and tangible personal property located within the City. The 1%Ad Valorem tax assessed on Saratoga property owners is allocated between the State,County,and local agencies that provide services based on residency. Saratoga, initially set up as a minimum services city, had historically received less property tax than it was entitled to, due to a decision made by Santa Clara County to retain a portion of Saratoga's (as well as Monte Sereno, Cupertino, and Los Altos Hill's) Property Tax revenues for their own use. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION Tax Equity Allocation - When Proposition 13 passed in 1978, property taxes were frozen at their current rate throughout the State. This action created significant problems for cities with low property tax rates. Subsequently, Section 98 of the California Revenue and Taxation Code was passed,establishing a minimum Tax Equity Allocation (TEA) of 7% of the 1.0% Ad Valorem tax as a condition for Counties to continue receiving trial court funding for their cities with low tax rates. Because Santa Clara County would receive less revenue from trial court funding than the additional property tax to be distributed to its four low tax cities(Saratoga,Cupertino,Los Altos Hills,and Monte Sereno), the County chose to retain the low tax rate and forgo the trial court funding. Subsequent State legislation was enacted that limited the four low property tax cities in Santa Clara County to just 55% of the 7% minimum allocation. In 2006,Assembly Bill 117 repealed the 55%limit legislation,however; in order for the legislation to have no effect on the State budget and therefore bypass the Appropriation Committee, the four cities were required to continue to remit the County's ERAF rate on these funds. Unfortunately,the ERAF rate the County remits to the State is much higher at 47.7%,than the four city's ERAF rates,which range from 7.53%to 17.37%. While AB 117 increased their share of the TEA payments,the higher ERAF rate meant the four cities continued to receive less and be treated differently than the State's other TEA cities. Efforts to pass a new Revenue and Taxation code that would assess the four cities at their own ERAF rates continued. In September 2015,the cities were finally successful. A FY 2015/16 budget trailer bill included a 5 year phase-in period that shifts the ERAF assessment from the County's 47.7%rate to each of the city's own ERAF rate at a pace of 20%per year so that by year 5,the cities would receive their full share of the allocation. For Saratoga, the decrease in ERAF rates to 17.14% equated to approximately$650,000 in FY 2015/16, meaning revenue would increase by about $130,000 (plus assessment role growth)through FY 2019/20. Current Assumptions - During General Fund Property Tax the economic recession,property values decreased. Valuation 16.000.000 appeals streamed in, and the 14,000,000 - County Assessor's Office 12,000,000 r1r1r1r11- �:tiftiftirti: reassessed properties and 10.000.00 0 W%f%!C_ lowered assessed valuations as 8.000.000 appropriate. As the valuation 6.000.0004.000.000 �'[ftiftirti' backlog was addressed lower .r.r.r.r.1 2,000,000 `r�:�?�r;?— property values were established; r-r•1•i-r• L•1.1• •1• thls resulted in decreased ,1013I14 914115 VJSJl 6 �p161t� 7p11i1B 2.g1SI19 property tax revenues in FY 2010/11. An increase in foreclosures and a decrease in property sales led to further decreases in property values. In turn,property transfer tax and supplemental tax revenues dropped. The County was still lowering property values in FY 2011/12 when the housing market began to pick up. The low housing prices prompted buying, and, sales began to pick up, meaning transfer and supplemental tax revenue increased,and in turn helped to stabilize total property tax revenues. As shown in the above chart,revenues have continued this upward trend at a significant pace. FY 2014/15 was 9.56% higher than the prior year,FY 2015/16 was 8.28%higher,FY 2016/17 was 6.22%higher,and FY 2017/18 was 7.99% higher. Forecasted growth is expected to taper as prices continue to climb and the market slows,therefore FY 2018/19 budgeted revenues are cautiously low with a 1.75%increase,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. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION 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 8.0 cents and the City receives 1 cent of the 9.0 cents paid on every dollar of taxable sales in the City. Sales Tax Saratoga is a largely residential community with limited retail 1,400,000 sources, therefore Sales and Use 1.200.000 Tax is small in comparison to 1.000.000 f:r:f:r:f— ,rtir;rtir;r other cities its size. The City s 800,000 Sales Tax revenue is derived 600,000 r�r:r�r:r primarily from restaurants it��ftif�f , 400.00a r1;1;1;1 grocery and drug stores, and gas 200.000 r,•r-r•r-r 'r r:r�r:� ,ftir.ftif.,. stations, and typically averages around$1.1 million per year. FY 20131t4 y 41 \5 ?,Q15ft6 ZQ16Ik1 701118 201'3119 2013/14 revenues were abnormally low due to both a negative true up of prior year receipts and a late payment booked into the following fiscal year. FY 2014/15 therefore was higher than normal dues to the late receipts, and a slight increase in Sales Tax receipts. FY 2015/16 and FY 2016/17 reflects strong tax base,however FY 2017/18 reflects a drop and what we expect to be a typical sales tax year into the near future as restaurant and gas station revenues have fallen. FY 2018/19 budgeted revenues are budgeted even lower to be conservative and because the City does not anticipate growth in this revenue stream. Franchise Fees Franchise Fees are levied by the City on a variety of utilities. State agencies establish franchise fee rates for utilities they regulate(i.e.2%of gross revenues for gas and electricity),while water utility franchise fee rates are set by State law based on linear feet of pipeline. The State's cable service contract was adopted by the City,which set the contract at 5% of gross revenue, with an additional 1% set aside for Public Franchise Fees Education & Government (PEG) 3,000.000 r public television capital 2.50a.o00 expenditure purposes. The City r•r f-' r.f.f.r.. 2,000.000 �•�•�•}— passes a portion of the PEG r r•r r-''rtir:ftir:. dedicated funding through to the 1,500,000 f r•+r•r Saratoga Community Access 1,000,000 Television Foundation that rtirtirtirM1 500.000 :tiftifti:ti— provides services to both West rrtirzrti Valley College and the City. The foundation uses the funds to �fll3t� �Ot��lS �OtSlt6 �p16111 �pt1I1$ atSl19 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 with the rising cost of environmental programs. The West Valley Solid Waste Joint Powers Authority, (representing the cities of Saratoga, Campbell, Los Gatos, and Monte Sereno), collects franchise fees as well as dedicated funding revenues for 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 • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION Transient Occupancy Tax Transient Occupancy Tax(TOT) is levied on short term lodging rental guests who are occupying a rented room for 30 days or less. The City's TOT rate of 10%of the room rental rate is a tax charged to the occupant,not the hotel, motel,or inn. Rental operators are required to collect this tax and submit it to the City on a monthly or quarterly basis. The City currently has two inns from which TOT revenue is collected. TOT revenue acts as an early warning bell as this revenue is closely aligned with and very reactive to the state of the economy. This was clearly seen in the economic contraction that began in late 2008. Revenue dropped quickly and severely, with a 30% downturn in revenue. The economic improvement was reflected just as Transient Occupancy Tag quickly as increases as the economy picked up in late 2011, 500,Oaa and by the end of FY 2011/12, 400,000 revenues had climbed back to pre- r1ftiftif 300,000 downturn era levels. In subsequent r:f�f:f r.r.r.r years,the economy's strong growth 200,000 }1fti}tif r.r.r.r r:f�f:f is shown as a steady climb in 100,000 revenues. �rtiftiftif .r.r.r.r However, FY 2018/19 is budgeted 7,,313114 V140 Zp15M 7,,016111 7,01111S �,p1.0) slightly below the prior year's revenue as a conservative measure. While the booming economy,the close proximity to the very popular Mountain Winery venue and the addition of the Levi Stadium in Santa Clara with its mega-size entertainment venue has helped to increase TOT revenue,future revenue may be impacted quickly if the economy begins to fade. With entertainment and hotel stays considered non-essential expenditures,a more conservative estimate is utilized for this revenue stream. Other Taxes Other Taxes are comprised of three tax revenues: Business License Tax; Supplemental Business License Tax(based on building permit valuations);and a Construction Tax of$1 dollar per square foot of new floor area as determined in the building permit process. Business conducted in the City of Saratoga is subject to a municipal Other Taxes Business License Tax, unless 700,000 excluded by code. The tax is not 600.000 1.1.1.1• regulatory; however a business must be in compliance with City 500,000 if.fif.f: ~r:r:r1r regulations in order to be issued a r-r•r-r• .r.r.r.r. 1}ti}1}ti}• license to operate in the City. The 300,000 Supplemental Business License 200,000 r.r.r.r. i~ftif~ftif5 Tax is a development tax based on 100,000 building permit value, thereby more fairly taxing a contractor's 2013j14 2014 15 2915I16 2,316111 2p11 18 2p18�19 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 many businesses were operating in Saratoga without a business license,the City contracted with a business license audit firm to bring businesses into compliance. As a result,additional revenue was generated and many more firms are now registered and pay their business license tax on an annual basis,leading to a fairly even revenue stream. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION Business License Supplemental and Construction Taxes are both based on building permit activity. As the chart shows,revenues slipped lower in FY 2016/17 but returned to steady levels in FY 2017/18. With a stable economic outlook at present and development activity strong,FY 2018/19's revenues are budgeted at approximately the same level as prior year's receipts. 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. Development Fees Although the entire community 3.000;000 benefits from an enforced regulatory program, the service 2,500;000 ,. , RAUMN, requestor initiates and benefits 2,000;000 ti•. . greatest from the development r•r•r•r f:f�f:r changes and should pay most, if I;500;000 f:f�f:r not all of the costs. The City r•r•r•r z;000;000 reviews development and other •r•r•r•r• 500;000 :f:f�f:r;— user fees each year to determine if ti.ti.ti.ti., r•r•r•r• the established fees are �013I14 2p1�+15 ��1511b ��1b�11 �p�1l�g �a1gf19 maintaining cost recovery obj ectives. In the recession,development fee revenue dropped quickly and severely,going from$2.35 million in FY 2007/08 to $1.64 million in FY 2009/10. The return to `normal' levels took more than four years, but continued through FY 2015/16. FY 2016/17 brought a lower$2.1 million revenue amount as the number of projects slowed, whereas FY 2017/18 brought revenues back up to almost $2.5 million. FY 2018/19 is budgeted at the lower base $2.0 million amount as a conservative projection, however a high level of construction activity is expected to continue into the near future as the housing market remains strong. Recreation Fees City Council policy states Recreation Fees are subject to a 65% cost recovery objective as services rendered are primarily for the benefit of the requestor,but the classes,activities,and programs benefit the community as a whole. Recreation Fees come from sport camps, exercise classes, skill Recreation Fees development, and various entertainment activities for all �oo:000 age groups and are available to 60C;000 both the Saratoga Community 500,000 r.f.r.r. ti•1•ti•1• and non-residents. 400;000 ,ti•ti•1•ti• r•r•r•r• 300.000 The Recreation Department also 200,000 ti•1•ti•1• ti•1•ti•1• .rtiflftirl• offers assorted excursion trips 100;000 raftiaa. throughout the year, and rtirtir1rtif children's camps during the 1� summer and winter holidays. 2013I ap1g115 7015I16 Zp1b+11 �01-�J18 ��1g�19 Recreation services are primarily on a fee share basis with instructors,who either pay a fee to hold their classes on the premises, or are paid a portion of the fees received for the classes.Residents receive a discount fee for most class or camp categories. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION Recreation Fee revenue is volatile,reacting to economic conditions,trends,and external competition. Over the five year revenue history revenues have fluctuated,but generally represent a downward trend. Since FY 2013/14,as the economy strengthened,recreation classes and summer camp programs have faced increased competition. FY 2018/19 revenue is budgeted at a conservative level to reflect the ongoing drop in recreation program revenues. 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. Rental Income Unlike other revenue streams, 600,000 MUM Rental Income increased during 5007000 11 , ' the economic downturn, in part 4007000 r r r r r due to the low cost of the facilities. rrrrr However, rental revenue has been 300,000 r1rir1rir �r1r1r1r1r unsteady through the years. In FY zo0,000 2012/13, revenue dropped from ioo;000 the elimination of the West Valley .f1r1 f1r1�- Sport Field rentals. Further 201211,5 2013114 1014115 20,5116 2c,16I11 7.011fts decreases came in FY 2013/14 with the loss of a cell tower lease. The consolidation of communication companies, and changes in technology have continued, with further reduced rental income in FY 2016/17. And then in FY 2017/18,the Prospect High School fields contract to rent the fields was terminated. FY 2018/19 revenues are projected under prior year's revenue levels as the diminishing size of youth sports is also expected to impact field usage. 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 at the present time, Interest Income the City's practice is to 400,000 restrict investments to the 350;000 Local Agency Investment 300:000 Fund(LAIF),a conservative 250;000 ti.ti.ti.ti and prudently managed 200;000 f'ftif'fti p Y mana g r;rtir:rti investment vehicle. 150;000 f1ftif1fti 100000 In the past, interest revenue 50,000 f1ftif1fti had been a significant - income source, with 2015+16 '1016I11 7,019J1s earnings reaching more than $700,000 in FY 2006/07. However, when the economy slipped into the Great Recession, interest rates fell to below 1%at an astonishingly rapid pace,and idle cash was reduced due to lower revenues. The City's interest revenue fell quickly,hitting bottom in FY 2012/13 with less than$29,000. In FY 2017/18, interest rates began to steadily climb upwards,more than doubling revenues from the prior year. FY 2018/19 revenue is budgeted conservatively to reflect CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION this increase with a fairly stable revenue amount is offset with reductions in average cash balances due to projected CIP project funding uses. NON-GENERAL FUND OPERATING REVENUES G.O. Bond Debt Service Assessments In March 2000,the citizens of Saratoga approved the issuance of a General Obligation Bond to pay for improvements to the City's library building. With this bond approval,property owners agreed to a thirty year property tax assessment to fund debt service payments for the bond issuance.A tax levy is assessed as a percentage of property tax valuation, in the same manner as schools or special district bonds. In prior years, the City's tax levy was calculated to equal the fiscal Debt Service Assessment year's debt service amount, 1,200,000 however rapidly rising property ®' values have resulted in assessment 900,000 receipts surpassing expectations iririr it each year. Since FY 2007/08,the 600;000 riJiriJtiJ levy is calculated to bring in less than the required payment. Still, 3007000 r.r.r.r.r assessments grow faster than +tiflftiflf r:r:r:rtii expected, causing the fund balance to decline at a very slow Z�13114 2p14115 V15I16 Zp16111 2011 J?, VISJ19 pace,if at all. In early FY 2011/12,the G.O.Bond was refunded to take advantage of lower interest rates for the remaining twenty years of the bond term. This resulted in even lower annual payments for the remaining years. The annual levy will continue to decrease further based on both lower payments and the continued goal to reduce the fund balance to an amount close to the base principal and interest amount. Landscape & Lighting Assessments An Assessment District represents a defined group of properties which, by majority vote of the property owners, authorized the assessment of a levy on each parcel to pay for public improvements or services provided within a predetermined agreement for the benefit of the property owners. The City currently has 29 L&L Assessments Assessment Districts,and continues $00,000 to establish additional districts at property owner's requests through a 6007000 :�f r1r1r1r: noticed community voting process. Some of the districts provide for 400;000 street lighting services, others for landscaping services and a few for J1J1J1r: ' 200-000 r.r.r.:. both. Seven of the oldest districts •f:frf:; are funded by property tax }-r•r-r• assessments as they were in effect 4 prior to Proposition 13. zo13l1 2o14j15 2p15116 201611 2a17I1a �a18�1g 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. These storm water districts provide swale CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION maintenance services for new hillside housing development projects per environmental regulations. The number of storm water runoff districts are expected to increase due to ongoing hillside property development. Assessment District revenue and expenses are generally consistent year-to-year,requiring only minor adjustments for increasing utility and service costs. On occasion,improvement projects or repairs occur which require the district to have sufficient funds on hand to pay for these major expenses. The City strives to assess the parcels at a slightly higher level than expenditures for this purpose. In FY 2014/15, the Saratoga City Council created a 50150 Grant Match Program to entice neighborhoods to form landscape assessment districts in the effort to further beautify the city. This resulted in three new L&L assessment districts so far, with another expected in the coming fiscal year. Together with the storm water runoff districts, the L&L Assessment graph shows consistent revenue growth. The FY 2017/18 budgeted revenue is held steady with the prior year,but will likely exceed budget due to the added districts. CAPITAL PROJECT REVENUES Motor Vehicle Fuel Tax (Gas Tax) Revenues The State of California imposes excise taxes on transportations fuels,which in turn are allocated to cities and counties under various complex formulas. Gas Tax revenue is required to be recorded in its own account, and an annual "Streets Report"must be filed with the State each year to document how the funds were expended. State law requires that allocated motor vehicle fuel tax funds must be expended for the construction,improvements,and maintenance of public streets;this includes engineering and administrative costs incurred for the foregoing purposes. Gas Tax Revenues are derived from tax on fuel purchased within city limits,as determined by the State's allocation formulas. For Saratoga,the key factors in projecting these revenues are historical revenues and the cost of gas—as well as the State's projections for the year.Typically,as gas prices rise,gas usage tends to go down. However,with the influx of electric and hybrid vehicles and higher mileage in regular vehicles,gas usage has decreased even under low gas prices. With gas prices expected to remain low, and electric and hybrid vehicle usage to increase, gas tax revenue is expected to decrease over the long term. In FY 2010/11, Proposition 53 created a permanent Gas Tax Revenue restructuring of gasoline tax allocations to include separate 1,000,000 State transportation funding known as "Prop 42 Traffic 750,000 Congestion Relief (TCR)" into `,ftirzrti� f.f.r.f the Gas Tax revenue structure. 500,000 :� tir=r~r=f FY 2012/13 revenues reflect a �so_ooa �f:f:r:f tir�rtif�� State take back for an error in the ti.ti•ti•ti• FY 2011/12 and 2012/13 allocations. FY 2013/14 '101)fJA V1410 1015f16 ?.p1�!lf 4fl1If1$ vj%1 19 returned to normal levels, however a shift in the allocation formula reduced revenues in FY 2014/15. Since FY 2015/16, significant gas price declines have reduced gas tax revenues sharply. Gas Tax revenue declines affecting both State and local agency's ability to fund street maintenance into the future, together with the economic downturn affecting street maintenance funding in previous years,road conditions had and would continue to decline throughout the State. A great deal of concern and discussion was centered around establishing an enhanced or dedicated funding source for ongoing road maintenance. In 2017,the legislature passed SB 1 to both increase gas taxes and to increase/add vehicle registration fees. Known as the Road Maintenance and Rehabilitation Program of 2017,the bill is expected to bring Saratoga a prorated amount of approximately$170,000 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION for the 2017/18 fiscal year,and then increase up to just over$500,000 in the following years. Lawsuits and election measure have put these revenues in jeopardy;to be decided in the November 2018 election 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 the City provide a percentage match to the grant funds. The City's capital grants are primarily obtained for street maintenance and improvements,bridge repairs, traffic safety improvements,and park improvements. In the adjacent chart,the darker bars on the left reflect actual grant revenues received during each fiscal year,while the right side speckled bar represents budgeted revenues. As mentioned in the Capital Program budget, budgeted capital project revenues reflect all known and outstanding grant award appropriations at the time of budget adoption to validate appropriations for capital expenditures. The net effect of this project tracking method is to overstate Capital Project Grants both revenues and expenditures 8:000,000 , in the Capital Budget as many 7:000;000 f;f;fti;r ti. . . capital projects are in reality, 6,000;000 multi-year appropriations. 5,000;000 f:ff:r Hence, budget far exceeds the 4,000;000 f:ff:r City's actual expectations. 3,000;000 •f:ff:r 1::•:1: 2_000.000MUM 11l••l1r The City has been awarded a I,000;000 number of significant grants in _ the last few years. The most significant,a$4.8 million OBAG 20131 14 Zplhll5 Zp1511b Zpl�l13 Z[]11118 2o181t9 grant for roadway safety improvements along Prospect and Saratoga Avenues, began work in FY 2017/18. With a couple of million already spent, grant payments are expected to begin in FY 2018/19. Quito Road Bridge Replacement,Highway 9 Phase 4 project,and other grant funded projects are in the easement and engineering stages, but are expected to be constructed over the next several years. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION LONG RANGE FINANCIAL FORECAST CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION CITY OF SARATOGA GENERAL FUND FIVE YEAR FORECAST FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 1 FY 2022/23 Actuals Actuals Actuals Budget Forecast Forecast Forecast Forecast Forecast TOTALSOURCES 1 Property Tax 11,301,176 12,003,942 12,963,531 13,189,900 13,679,923 14,087,746 14,532,070 14,971,080 15,424,290 Sales Tax 1,189,398 1,185,035 1,124,647 1,050,000 1 11050,000 1,050,000 1,050,000 1,050,000 1,050,000 Franchise Tax 2,235,514„ 2,356,539 2,338,794. 2,462, 2,497,060 2,532,600 2,568,700 2,605,300 2,642,400 Other Taxes I 897,761 857,050 1 960,363 930 944,850 960,000 1 975,500 989,400 1 1,003,400 Total Tax Revenues 1 15,623,849 16,402,5661 17,387,335 17,631,9001 18,171,833 18,630,3461 19,126,270 19,615,7801 20,120,090 Fees&Services 1 3,624,783 3,167,008 1 3,989,318 3,255,848 1 3,326,000 3,378,700 1 3,480,700 3,519,500 1 3,612,900 Other Operating Revenues 1 17,157,813 17,945,405 1 18,980,789 1,408,8401,580,765 1,600,980 1 1,621,520 1,642,560 1 1,663,900 Total Operational Revenues) 20,782,596 21,112,413 1 22,970,107 4,664,E 4,906,765 4,979,680 1 5,102,220 5,162,060 1 5,276,800 Transfers In 267,918 55,384 I 442,198 - - - I TOTAL REVENUES 1 21,050,514 21,167,7971 23,412306 22,296,576 23,078,598 23,610,0261 24,228,490 24,777,8401 25,396,890 Plus Use o FB Reserves 1,814,453 1,420,655 1 1,720,155 1,320,000 1 1,207,629 381,478 1 82,545 40,264 1 TOTALSOURCES 22,864,967 . 22,588,452 1 25,132,461 23,616,576 1 24,286,226 23,991,504 1 24,311,035 24,818,104 25,396,890 I I I I I TOTAL USES I I I I Salary&Benefits 6,814,802: 7,171,068 1 7,264,949 8,345,58 8,419,724 8,600,785 1 81776,688 8,964,887 9,164,431 UALPayments j 500,000' 500,0001 750,000 1,052,6 1,000,000 1,000,0001 11000,000 1,000,000 j 1,000,000 Operating Expenditures 8,428,407 8,996,9201 8,748,344 9,965,1 10,144,265 1Q695,776 11,141,040 11,759,642 12,272,528 Cost Allocation Charges 1 2,455,758 2,535,4721 2,626,497 2,591,3 2,733,131 2,830,9201 2,933,680 3,001,7001 3,071,830 Total Operational Costs 18,198,967 19,203,461 1 19,389,790 21,954,6 22,297,120 23,127,481 1 23,851,408 24,726,229 1 25,508,789 Transfers Out 2,017,656 1,620,648 1 1,872,909. 1,270, 1,157,629 331,478 1 32,545 27,082 1 - TOTAL EXPENDITURES 20,216,623 20,824,1091 21,262,699 . 23, 24,6M 23,454,749 23,458,9591 23,883,953 24,753,311 25,508,789 I I I I NETOPERA,nONS ]ff 1 2,648,344 ' 1,764,343 I 3,869,761 391,885 1 831,478 532,545 1 427,082 64,793 (111,899)I I FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 1 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 1 FY 2022/23 I I I I Actuals Actuals I Actuals Budget Forecast Forecast Forecast Forecast Forecast GENERAL FUND BALANCE RESERVES(at Year End) I I I Other Unassigned 1 2,447,445 2,215,744 3,818,703 (711,074)I 1,331,478 1,032,545 927,082 464,7931 (147,106) Operational Reserves I 2,533,239 2,554,579 1,718,067 3,276,473 I 407,770 357,770 307,770 294,588 j 294,588 Economic Reserves j 2,409,937 2,923,988 3,447,146 3,947,146 j 4,447,146 4,947,146 5,447,146 5,947,1461 6,447,146 Emergency Reserves 1 3,250,000 3,290,000 4,150,000 4,150,000 1 4,150,000 4,150,000 4,150,000 4,150,000 I 4150000 TOTAL FUND BALANCE 1 10,640,620 10,984,311 1 13,133,916 10,662,545 1 10,336,394 1 10,487,461 1 10,831,998 1 10,8561527 110,744,628 Past Three Years Actuals - 2018/19 Budget Year - and Five Year Forecast 30,000,000 25,000,000 20,000,000 -------------^- 15,000,000 10,000,000 5,000,000 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 � Fund Balance -Total Sources --- Total Uses CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION 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 2018/19 adopted budget as the base. The forecast does not project future operational changes as those are the prerogative of the City Council and management. Therefore,the forecast provides revenues and expenditure data based on both conservative estimates,current direction and reasonable assumptions. Operationally, funding allocation changes are made year by year to adjust to shifting information, resources, and circumstances. The objective of this forecast is to act as a bell-weather to identify anticipated impacts that should be addressed in the future. For instance,a negative net operation amount in an out-year does not reflect what will happen, but rather a warning that projected revenues is not keeping pace with projected expenditure growth, and that operational adjustments will be required. The forecast is limited to the General Fund,as this is the City's primary operating fund. All general tax revenues and other receipts not allocated by law or contractual agreement to other funds are accounted for in the General Fund. Expenditures of this fund include most general operating expenses traditionally associated with governments such as city administration, development services,public works, and public safety. Overall,the General Fund accounts for and represents the main operational activities of the City,and is of primary importance for long-term planning. Other funds have focused,specific purposes,and are therefore not included in the forecast. Internal Service Funds are funded by charges to operational programs (primarily General Fund) for support functions, and are therefore an accounting tool. Capital Fund revenue comes from dedicated external funding and prior year General Fund net operations for administrative and infrastructure improvement projects. Special Revenue and Debt Service Funds are independent of the General Fund; revenues come from assessments or fees, which must be used for their specific purpose, and are therefore not available for general operations. As stated above,the General Fund forecast is based upon reasonable assumptions,both for revenues and expenditures. These assumptions are conservative;revenues are at the low end of projections, and expenditures are fully budgeted to achieve the stated workplan,under the principle that it is better to expect less revenue and higher expenses and wind up with net operational savings that can be utilized for new initiatives and improvement projects, than to be caught short of funds and having to adjust in mid-stream. Summaries of the five year forecast assumptions follow. GENERAL FUND REVENUE ASSUMPTIONS: Property Tax—We continue to see significant growth in Secured Property Tax—the 1%ad valorem tax based on a property owner's taxable value. This growth is due in part to receiving additional TEA money beginning FY 2015/16, but also from ongoing increases in assessed valuations,either from the annual allowable increase,ownership changes that reset the taxable value, or remodeling improvements and new construction that increase a home's value. This rapid pace of increasing revenues appears to have hit its peak level in FY 2015/16 with year-over-year growth of 10.53%. Increases dropped to 8.69%in FY 2016/17,and then picked up again to 9.04%in FY 2017/18. FY 2018/19 revenues are budgeted lower at just under 6.5% growth as market trends suggest the housing market, while still strong, appears to have hit a slowdown. The median number of days a home spends on the market are increasing. A September 2018 Bay Area newspaper article suggests the increase in inventory, over-inflated prices, and rising mortgage rates are the cause. According to MLS Listings,market data also shows that the number of houses selling for less than their asking price is increasing,and the median prices for single-family homes have been falling since March in Santa Clara County. In Saratoga,the median sales price for homes over July,August,and September 2018 was$2.8 million,with only 3.1%selling over list price and staying on the market for 21 days. While increases from the prior year appear healthy, the more recently forecasted tightening of market trends advocate for a more conservative projection in the forthcoming years. Following expectations for a weakening but fairly stable FY 2018/19, the forecast was prepared with more conservative overall Property Tax revenue growth projections of 4% for FY 2019/20,and 3%in the years after. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION Similarly, Property Tax In-Lieu-of-VLF is budgeted conservatively to increase less than prior years, from between 5.2%—8.0%per year during the last five years,to just 3.8%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 high. As In- Lieu Property Tax Revenue growth trends typically mirrors Secured Property Tax revenue growth, (with some variation caused by the true-ups)the forecast-year projections follow the Secured Tax growth assumptions. Property Transfer Tax and Supplemental Tax receipts contribute heavily to total 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. Over the last five years,rapid property tax growth resulted in excess ERAF distributions to Santa Clara County cities, and in turn,to revenue growth. However,this revenue stream(around$200-$300k)is unpredictable as a slowdown in property tax growth or a change in State law can, and has in the past, eliminated or severely reduced these distributions. Due to this unpredictability,ERAF is not included in forecasted revenue. Sales Tax—Similar to Property Tax In-Lieu,Sales Tax revenue distributions from the State are impacted by estimated payments, true-ups, and allocation corrections, making revenue projections difficult. And because the City's small revenue base can unexpectedly fluctuate by more than 10% year to year, the City depends upon our Sales Tax Consultants to closely monitor receipts and provide us with reasonable estimates. FY 2015/16 included a$160,000 final triple flip true-up payment,but the loss of Roku,one of the City's largest sales tax contributors offset the increase a bit. While FY 2016/17 revenues held steady,revenues decreased in FY 2017/18 due to a retail closure. FY 2018/19 revenues are budgeted even lower as a cautionary measure, with future year projections at a safe 1.0%growth trend for years beyond the current fiscal year. Transient Occupancy Tax—Saratoga's TOT reacts quickly to economic changes as the revenue stream is based on typically nonessential spending. This was illustrated clearly in the economic downturn,and again with the recovery. As the recession ended,revenues grew rapidly,and five years later,have continued to grow. However,conservative practices for this volatile revenue dictate that budget and forecasted amounts reflect lower expectations. However, because the economy remains strong at this point, forecast projections are held relatively flat,with a 1%growth rate to reflect slightly rising room costs. Business License Tax—Business License Tax revenue is comprised of two revenue streams: 1) the actual license portion and 2) for contractors, a supplemental tax that is a percentage of any building permit's valuation they pull during the year. The license portion of the Business License Tax can fluctuate by 10%year over year with normal business growth and decline,but for the long run,Business License Fee revenue is expected to hold steady. The license fee itself is not anticipated to increase, nor is business and retail space in the City, so growth primarily comes in the form of additional home-based businesses. A conservative 1% growth rate is applied in the out-years due to the continued strength in the economy. Relatedly,the Supplemental Business License Tax portion increased consistently since climbing out of the recession in FY 2010/11. Well, that is until FY 2016/17 when revenues dipped slightly in conjunction with a reduction in building permit processing. As a result,FY 2017/18 revenues grew by 25%with the clearance of the backlog,and a slight increase in construction activity. As a result,FY 2018/19 receipts are expected to remain relatively stable with the prior year,and forecasted revenues are projected with a slight 2%growth rate into the future. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION Construction Tax—Represents a City enacted tax charged on additional square footage as part of a building permit fee. At this point,the strength of the economy is expected to maintain a moderate level of building activity throughout the five forecasted years. As revenue growth follows close to the same trend line as Supplemental Business License Tax,the forecast years also apply a conservative 2%growth in the out-years. Franchise Fees—Franchise Fees function as an alternative to Business License Taxes for those businesses exempt from the tax. This includes utilities(PG&E and SJ Water),solid waste,and cable providers. In FY 2012/13, the City began collecting about $160,000 in new Solid Waste Fees earmarked for the City's environmental program costs, including the Solid Waste JPA dues and the Household Hazardous Waste program. Solid Waste revenue growth is expected to be limited;however fees continue to increase with the cost of services. In line with market trends, Solid Waste Franchise Fees are forecast to increase at a slow but steady 2%pace. On average,gas,electric,and water utility franchise fees have been fairly unpredictable from year to year. This may in part be due to citizens becoming more environmentally conscientious, and from technology improvements that reduce energy consumption. On the other hand, demands continue to increase with a growing technology savvy population and the ever increasing assortment of new energy consuming gadgets. Therefore,the forecast is based on the averages of the anticipated ups and downs over the years,which equates to a positive trend line of about 1.5%per year. Cable Franchise Fees has shown a steady growth stream for years, primarily due to the escalating costs associated with the ever-higher level of services provided.Forecasted revenues reflect a conservative 2%growth trend in the out- years,however technology changes in wireless technology/streaming availability may impact this revenue source in the future, so this revenue stream bears close watching. Development Revenues—Planning&Building revenues increased with the strengthening economy over the last few years,but took a step back down in FY 2016/17. FY 2017/18 revenues rebounded, increasing by almost 20%. This volatility may be reactive to other factors rather than a trend, so FY 2018/19 revenues were budgeted more in line with the prior year's reduced levels. Further,with interest rates increasing,development activity may slow. Taking a conservative approach, and using the lower base amount, mild growth is forecasted. 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 five years,recreation revenue has fluctuated,but generally decreased as external class competition increases. FY 2016/17 saw a large decrease in class program revenue with the loss of a long-tenured and popular jazzercise instructor. Further reductions followed with lower enrollments and resulting cancellation of classes. To offset changes in instructors and class demands, staff continually revises class offerings, always working to keep up with new recreation interests. However, the recreation program has decreased over the years, therefore forecast revenue projections reflect a reduction in the FY 2018/19 budget, and future years holding minimal at 0% to 1% changes. Rental Income—With the consolidation of cell phone service providers over the last five years,cell tower leases are dwindling and lease revenues have fallen. Forecasted years include the remaining lease providers with nominal rate increases, however future lease cancellations may change the projections in the out-years in upcoming years. Park and Facility rental rates are projected to grow very 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 climbed up, at first painfully slow,but in FY 2017/18 rates more than doubled to end the fiscal year at 1.9%. Reports indicate the Federal Reserve believes the economy is very strong and therefore intends to continue increasing interest rates at a very slow pace to offset the potential for a slide back into an economic recession. With this understanding,forecasted interest finally reflects some minimal growth in the near term and future. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION GENERAL FUND EXPENDITURE ASSUMPTIONS Salary—An increase in labor costs in FY 2018/19 reflect both the maximum cost-of-living increase under the labor contract(2.5%),full staffing levels,promotional increases, and an additional$450,000 for West Valley Clean Water Program staff salary expenses due to the addition of the City acting as the fiscal agent for the Clean Water Program. Using a conservative approach, forecasted salary&benefit expenditures reflect maximum MOU pay step increases for current staff,and a zero vacancy factor,whereas prior year amounts are actual costs. Benefits — In 2014, Ca1PERS separated the "Normal Cost" for current year pension costs, from the prior year's liability,known as the"Unfunded Accrued Liability"(UAL). The Normal Cost is a rate applied on current payroll, and represents the current cost to provide the Ca1PERS pension benefit. For the UAL, agencies are paying their allocated share of prior year liabilities that accrued as a result of Ca1PERS investment losses and assumption change. Graduated payments were scheduled over a thirty year payment plan. Saratoga's City Council established a policy to make annual UAL payments at higher than the required contribution level in order to reduce the outstanding liability quicker,reduce the overall cost,and stabilize the annual payment amount. For FY 2015/16 and 2016/17, the City contributed $500,000 per year for the UAL payment. Subsequently, in FY 2016/17, CalPERS modified their actuarial assumptions, and reduced the discount rate from 7.5%to 7.375%. This change resulted in a significantly higher unfunded liability—the City's remaining Tier I UAL grew from$4.7 million at July 2016 to$8.4 million in July 2017. This change also meant future required contribution amounts would increase. For the FY 2017/18 budget, the Council allocated $750,000 for the annual Tier I payment amount under the assumption that this higher payment level would be sufficient for a couple of years. The further lowering of the Ca1PERS discount rate prompted the council to revisit the payment amount matter, and for FY 2018/19,the annual UAL payment was increased to $1 million, plus another $50,000 to pay off the Tier II and Tier III UAL's in their entirety. The forecast reflects this $1 million annual payment and total annual payoff of the Tier II and III UALs going forward. Under the City's MOU agreements that have employees sharing future medical insurance premium increases,health costs will increase at a slower pace. Dental premium increases are very low,and disability and life insurance benefit costs are almost flat, with nominal increases occurring only every few years. Together, reduced premium contributions,an increase in employees switching to lower-cost health care, and an increase in employees opting for in-lieu benefits is projected to bring a growth rate of 3.5%in the forecasted years. Operating Expenditures — Expenses include materials and supplies, fees, contract services and consultants (excluding Public Safety contract services),and are generally regulated by service level and budget availability. Under normal circumstances, operating expenditures are generally held flat or at minimal increases. For the forecast, accounts are reviewed and forecasted individually, taking into consideration trends, variances, changes in service levels, and one-time occurrences. Most operational costs reflect moderate annual increases of between 1%to 2.5% increases. Forecasted operating expeiture increases average around 2.8% in the out years with the anticipation of maintaining the City's high service level. Public Safety—Under the Sherriffs service contract, annual increases are established at CPI plus 2%, with typical increases ranging from 3%to 6% each year. Under the latest agreement with Santa Clara County Sheriffs Office, FY 2016/17through FY 2019/20 wages are scheduled to increase by 3%annually,with total contract costs expected to increase around 4%per year. Forecasted increases for FY's 2020/21,2021/22, and 2022/23 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. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION Internal Service Funds (ISF)—With the wide variance in ISF functions, annual growth factors are adjusted on an individual fund basis. Insurance funds use a conservative but escalating projection to insure sufficient funding is available for premiums and claims. The Vehicle Maintenance,IT Services,and Building Maintenance ISF programs are expected to increase more rapidly due to ongoing labor and service level cost increases. The replacement ISF programs include a Vehicle &Equipment Replacement program, a Facility Furniture, Fixture, & Equipment(FFE) program, and a more comprehensive IT Replacement program. These funds have stable funding charges that are adequate to improve resource management funding, transparency, and management over a 20 year long term projection. These funds maintain a flat rate into the forecasted years. FISCAL SUSTAINABILITY Overall,the City's General Fund forecast projection reflects a stable and healthy financial situation under these steady times,with sufficient funding available for operations,UAL payments,internal service and asset replacement funding, and remaining net operations funds for capital improvements on an ongoing basis. Currently,operations are established and functioning at a high service level,additional requests are addressed quickly, and emphasis is being placed on increasing communication outreach with Saratoga residents to both enhance public safety and enrich community cohesiveness. Internal Service Funds are at sustainable levels, and asset replacements are funded adequately. While some revenues are dedicated and go directly to Capital Improvement Programs, the City continues to add additional funding each year from Net Operations savings. Furthermore,the economic growth over the last five years has allowed the City to make great strides in long term financial planning,and preparations for leaner financial times. In general, Fund Balance Reserves are established and funded at sufficient levels. Additionally, initial funding contributions of $500,000 annually have begun for the Facility Replacement Reserve. This reserve's goal is unspecified but intended for Citywide facility replacements that are expected to run in the tens of-millions of dollars. Master Infrastructure Replacement Plans are being developed as we go along,with annual funding in place for some replacement and maintenance of fixed assets on an ongoing basis. This includes technology assets, vehicles & equipment, facility assets, streets and sidewalks, and park and trail infrastructure. As time and resources allow, infrastructure replacement master plans will be developed for categories such as parking lots,street lights,signal lights and storm drains. Each of these would require additional funding set-asides,however the City is making great strides in infrastructure maintenance,and is well prepared operationally for a recession if one should occur in the near future. In the Forecast,Net Operations shows a positive but diminishing projection in the out years,to a negative result in the last year. As shown,Net Operations and Unassigned Fund Balance have decreased to the point where there are no funds available to transfer to the CIP Reserve. The Facility Reserve continues to be funded at$500,000 per year,but if the situation is to occur,Council would determine whether CIP funding or Reserve funding takes precedence. As noted previously,this forecast is not a projection of what is expected to occur, it is merely a tool to indicate how current revenue trends and spending patterns play out in the long term. The forecast does not reflect adjustments for economic or organizational changes as would normally occur each fiscal year in the development of a budget. In the normal course of budgeting during a downturn, the Council could adjust operations to decreased funding levels as desired,such as by reducing temporary staff,contract services,delaying replacements,or utilizing Fiscal Stabilization reserves. Most notably,this forecast shows that revenues will not keep up with the increases expected for salary and public safety services. Overall, this forecast provides Council a tool to understand the City's financial structure, and to manage future economic changes so that the City is well prepared to address fluctuations in operational and capital spending levels. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION 0{ S A Rq L -q 1956 ��LrfipRN�P CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ,CITY OF SARATOGA DEPARTMENT BUDGETS - BY PROGRAM COUNCIL&COMMISSIONS Council&Commissions Overview.............................................................................................................................147 1101 City Council.........................................................................................................................................................151 1201 City Commissions..............................................................................................................................................153 CITY MANAGER'S DEPARTMENT City Manager's Department Overview......................................................................................................................157 2101 City Manager's Office.......................................................................................................................................163 2201 City Clerk.............................................................................................................................................................169 2401 Public Information Office................................................................................................................................173 ADMINISTRATIVE SERVICES DEPARTMENT Administrative Services Department Overview.....................................................................................................177 3101 Finance Services.................................................................................................................................................183 3301 Human Resources..............................................................................................................................................187 3401 Administrative Services...................................................................................................................................191 Internal Service Funds 3102 Office Support Fund.........................................................................................................................................195 3201 Information Technology Services.................................................................................................................197 3202 IT Equipment Replacement Fund..................................................................................................................201 COMMUNITY DEVELOPMENT DEPARTMENT Community Development Department Overview.................................................................................................205 4101 Development Services......................................................................................................................................211 4102 Advanced Planning............................................................................................................................................215 4103 Code Compliance ..............................................................................................................................................219 4201 Building&Inspection Services.......................................................................................................................223 PUBLIC WORKS DEPARTMENT Public Works Department Overview.........................................................................................................................227 5101 General Engineering..........................................................................................................................................233 5102 Development Engineering...............................................................................................................................237 5103 Environmental Services....................................................................................................................................241 5201 Streets&Storm Drains.....................................................................................................................................245 5301 Parks&Landscape Maintenance...................................................................................................................249 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET DEPARTMENTAL BUDGET DIRECTORY PUBLIC WORKS DEPARTMENT-CONT'D Internal Service Funds 5202 Vehicle&Equipment Maintenance...............................................................................................................253 5203 Vehicle&Equipment Replacement...............................................................................................................257 Special Revenue Funds 5302 Landscape&Lighting Districts......................................................................................................................260 RECREATION&FACILITIES DEPARTMENT Recreation Department Overview..............................................................................................................................263 6101 Recreation Services...........................................................................................................................................269 6102 Teen Services.......................................................................................................................................................273 6201 Facility Rentals...................................................................................................................................................277 Internal Service Funds 6202 Facility Maintenance ........................................................................................................................................281 6203 Facility FFE Replacement.................................................................................................................................285 PUBLIC SAFETY DEPARTMENT Public Safety Department Overview..........................................................................................................................289 7101 Public Safety Services.......................................................................................................................................293 7102 Emergency Preparedness.................................................................................................................................299 NON-DEPARTMENTAL Non-Departmental Overview.......................................................................................................................................303 8101 General Administration...................................................................................................................................307 8201 Legal Services......................................................................................................................................................311 8301 Community Grants............................................................................................................................................315 8302 Community Events............................................................................................................................................317 8901 Emergency Operations.....................................................................................................................................321 Internal Service Funds 8401 Risk Management/Liability Insurance.........................................................................................................323 8501 Workers Compensation Insurance................................................................................................................327 Trust&Agency Funds 8713 West Valley Clean Water Program.................................................................................................................331 Debt Service Funds 8601 2001 Series GO Bond Debt Service Fund....................................................................................................333 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET '' DEPARTMENTAL BUDGET DIRECTORY CITY OF SARATOGA ORGANIZATION CHART FY 2018/19 CITIZENS OF SARATOGA Elected City Council Citizen Advisory Cotnrnissions& City Manager City Attorney Conututtees City Manager's Finance&Admin community Public Works Recreation&Facilities Department Services Development Kept Department Department 1.0 City Manager 1.0 Finance&Admin 1.0 Community 1.0 Public Works 1.0 Recreation&Facilities Serivices Director Development Director Director Director (ty Manager'snffice Finance Division Planning Divi Sinn Engineering Division Recreation Services 1.0 Deputy City 1.0 Finance Manager 1.0 Senior Planner 1.0 Sr.Civil Engineer Division Manager .9 Accountant 2.0 Planners 1.0 Associate Engineer 1.0 Rec Manager 'AS Exec Assistant 1.0 Lead Accounting 1.0 Arborist 1.0 Assistant Engineer .70 Rec Coordinator 6. Tech 1.0 Admin Assistant .90 Administrative Lead 1.75 Accounting Techs 1.0 Code Compliance Analyst 2.0 Rec Coordinators Officer 60 Facility Coordinator City Clerk's Office .1.0 City Clerk Inform ationTechnology LZ L�- tsivision AS Deputy City Clerk nivisio 1 Building Division t Facilities Maintenance 1.0 IT Supervisor 1.0 Building Official Division 1.0 IT Technician 2.0 Building Inspectors d 1.0 Facility Maint.Mgr 1.0 Permit Technician rkers 1.0 Facility Maint.Lead Public information 1.0 Office Specialist 1.0 Facility Maint.Worker Office Human Resources .1.0 Admin Analyst Division 1.0 FIIi Manager Parks Division .75 HR Technician 1.0 Parks&Landscape Mgr. 2.0 Park Maint.Lead 5.0 Park Maint Workers Administrative Services .SO Office Specialist ivisio .25 Accounting Tech FY 2018/19 FTE's = 56.50 Notes. ■ Santa Clara County Sheriff's Office provides police services for the City by contract. • Santa Clara County Fire Department provides fire services as a separate entity. • Santa Clara County Library District UPA)provides library services as a separate entity,in a City owned and maintained library building,as provided by contract. ■ San Jose Animal Services provides animal control services for the City by contract. ■Various public health/environment and utility services provided by separate districts or private enterprises CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET DEPARTMENTAL BUDGET DIRECTORY oj SARq�.oC � 9 1956 FpRN�P CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET - COUNCIL • • DEPARTMENT OVERVIEW The Council&Commissions Department, which represents the elected and appointed officials of Saratoga, consists of the City Council and City Commissions programs. The City Council has five publicly elected members who act as the legislative body representing the residents and community of the City of Saratoga. Council Members serve four-year terms,with elections for either two or three of the seats every two years. Each December,the Mayor and Vice-Mayor are elected by their fellow Council Members to one-year terms. If a Council seat is vacated during a Council term,a Council Member may be appointed to fill the vacant seat for the remainder of the term. Alternatively,the Council may choose to hold an election to fill the Council seat. City Commissions are advisory bodies whose members are appointed by the Council. These Commissions are established to encourage residents to become involved in their community and to broaden the City's decision-making processes. City Committees are also included in this program and differ from Commissions in that a committee represents a smaller advisory body with more narrowly defined duties. Active Commissions and Committees, effective with the adoption of the FY 2018/19 budget are as follows: • Heritage Preservation Commission • Youth Commission • Library Commission • Council Finance Committee • Parks&Recreation Commission • Pedestrian,Equestrian,Bicycle,Trails Advisory • Planning Commission Committee • Traffic Safety Commission • Public Safety Task Force DEPARTMENT OBJECTIVES The City Council and City Commissions represent the Saratoga community. The City Council establishes City policy and serves as the decision making body,receiving recommendations from Commissions and staff and then providing direction to the City Manager for implementation. Both the City Council and City Commissions play a key role in the implementation of the Council's Strategic Goals. Council Strategic Goal City Leadership: Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high quality leadership for the community. Department Objectives • Foster community partnerships through annual meetings between the City Council and stakeholder groups, including service organizations,cultural institutions,and other local government agencies serving Saratoga • Maintain an understanding of community needs and desires by being available to the community • Strengthen relationships with community members by attending community events • Adopt policies that encourage civic engagement,transparency,and efficiency in government • Encourage civic participation in government decisions through outreach,and public meetings • Comply with open government and ethics laws,including the Brown Act and Political Reform Act CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET COUNCIL & COMMISSIONS DEPARTMENT Council Strategic Goal Fiscal Stewardship:Ensure fiscal responsibility and transparency,proactively seeking opportunities for improvement. Department Objectives • Adopt policies that encourage conservative budgeting and protect taxpayer dollars from frivolous use • Nurture a business friendly environment through policies and incentives • Identify and protect core services as budgetary priorities Council Strategic Goal Public Safety:Provide a safe and secure community. Department Objectives • Encourage residents to support community-oriented policing and prevent crime through safety awareness programs, such as Neighborhood Watch or other crime prevention programs, including crime prevention forums and the Public Safety Task Force • Reduce loss of life and property during a disaster by encouraging residents to participate in community-based emergency preparation,including the City's Community Emergency Response Team(CERT)and Personal Emergency Preparedness program(PEP) • Facilitate neighborhood communications on safety related matters by hosting informational forums and providing residents with communication tools,such as Nextdoor.com,AlertSCC,TIS AM Radio and KSAR TV Council Strategic Goal Community Heritage:Honor Saratoga's heritage by preserving significant historic assets. Department Objectives • Implement existing policies that maintain the City's historic heritage • Protect the City's natural beauty by maintaining the City's `Tree City USA' status, hillside preservation policies,and high standards of care for City parks • Appoint commissioners to the Heritage Preservation Commission who honor Saratoga's heritage Council Strategic Goal Community Enrichment: Foster a community with an enriched and diverse culture and engaged citizenry. Department Objectives • Build community through grant programs that promote events in Saratoga • Provide leadership development opportunities for residents through appointments to civic boards and commissions, make appointments that reflect the multicultural nature and diverse interests of the City's residents,and by providing volunteer opportunities • Promote health as a community value through health-related programs and policies, such as tobacco control policies and resources provided to encourage physical activity • Strengthen partnerships with local cultural organizations and institutions • Honor cultural diversity by participation in multicultural events,which enhance the vibrancy of Saratoga • Encourage inclusiveness by honoring and respecting diversity and making Saratoga an age-friendly community • Foster a business-friendly environment and a vibrant downtown by supporting and providing incentives and programs that draw people to the Village CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET COUNCIL & COMMISSIONS DEPARTMENT 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET COUNCIL & COMMISSIONS DEPARTMENT GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits 3,600 600 4,200 600 - Other Sources - - - 100,000 - TOTAL REVENUES $ 3,600 $ 600 $ 4,200 $ - $ 100,600 $ - EXPENDITURES Salaries and Benefits 29,517 29,917 29,936 29,936 29,937 29,981 Operating Expenditures Materials&Supplies 10,494 9,049 17,620 41,200 21,601 42,910 Fees&Charges 27,748 180,376 76,827 89,778 32,987 94,750 Consultant&Contract Service: 9,359 6,141 9,900 10,000 9,400 10,000 Meetings,Events,&Training 23,582 21,392 27,519 39,200 19,383 41,000 Total Operating Expenditures 71,174 216,958 131,866 180,178 83,371 188,660 Fixed Assets - - - - - - hitemal Service Charges 59,333 62,758 65,854 69,354 69,354 70,290 TOTAL EXPENDITURES $ 160,023 $ 309,633 $ 227,655 $ 279,467 $ 182,662 $ 288,931 DEPARTMENTAL EXPENDITURES - BY PROGRAM 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND City Council $ 129,132 $ 278,794 $ 188,067 $ 216,605 $ 144,973 $ 223,722 City Commissions 30,891 30,840 39,589 62,863 37,689 65,208 TOTAL GENERAL FUND $ 160,023 $ 309,633 $ 227,655 $ 279,467 $ 182,662 $ 288,931 TOTAL EXPENDITURES $ 160,023 $ 309,633 $ 227,655 $ 279,467 $ 182,662 $ 288,931 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY COUNCIL CITY COUNCIL OVERVIEW The City Council is a five-member legislative body that represents the residents and community of Saratoga. The City Council operates under a Council/Manager form of government that combines the policy leadership of elected officials with the managerial expertise of an appointed City Manager. Council meetings are held on the first and third Wednesday of the month where Council actively seeks input in its decision-making process from Saratoga residents. The Council establishes direction on policy, legislative, and community matters,which are then carried out by City staff under the guidance of the City Manager. The City Council conducts meetings at least annually with all City Commissions, and community organizations that are closely affiliated with the City, including the Saratoga Chamber of Commerce, the Saratoga Area Senior Coordinating Council (SASCC), the Hakone Foundation, neighborhood associations, and the Saratoga Ministerial Association. These meetings serve to strengthen the Council's relationships with its partners in the community. In addition,the Council forms subcommittees to work on specific projects or issues as needed. For example,the City Council formed a Public Art Ad Hoc to engage the Montalvo Arts Center to identify a work of art to be temporarily located on City property. In Fiscal Year 2016/17,the committee was converted to a standing committee to consider and make recommendations on public art opportunities in Saratoga. To further strengthen connections with the community, Council Members are appointed to serve as liaisons to community organizations as well as voting members on other governmental boards and Joint Power Authorities(JPAs),including the West Valley Solid Waste Management Authority and the West Valley Sanitation District. Council Members also serve on regional organizations such as Cities Association of Santa Clara County and the Peninsula Division of the League of California Cities,and sub-regional associations such as the West Valley Mayors and Managers(WVMM) group. The WVMM's primary function is to select representation on the VTA Board and the Silicon Valley Regional Inter-Operability Authority, and acts as a forum for the discussion of issues common to the West Valley Cities of Saratoga, Cupertino, Campbell, and the Town of Los Gatos. Some Council Members are also appointed by other organizations to serve on regional boards or committees, such as the County of Santa Clara Recycling and Waste Reduction Commission. BUDGET HIGHLIGHTS Notable Budget Changes: • Council's budget includes small cost increases associated with training and travel Revenues in the City Council Program are limited to City Council appeal fees—the City typically receives two to three per year. Expenditures include$250 monthly stipends for each of the five Council Members,funding for special events, meeting expenses, conferences, and operational supplies. Membership dues for Regional Agencies such as the Association of Bay Area Governments,the Santa Clara County Cities Association, and the West Valley Mayors and Managers Association are also included in this program budget. Each year,$50,000 is budgeted for Council discretionary funds for unanticipated expenditures that may occur during the year. Per policy,any remaining Council Discretionary funds at year-end is carried over to the following year,after the fiscal year is closed. This carryover is then an adjustment to the adopted budget. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY COUNCIL GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits 3,600 600 4,200 600 - Other Sources - - - 100,000 - TOTAL REVENUES $ 3,600 S 600 $ 4,200 $ - $ 100,600 $ - EXPENDITURES Salaries and Benefits 16,599 16,353 16,372 16,372 16,373 16,417 Operating Expenditures Materials&Supplies 2,666 2,527 3,734 4,150 1,931 4,160 Fees& Charges 27,748 180,376 76,827 89,778 32,987 94,750 Consultant& Contract Services 9,359 6,141 9,900 10,000 9,400 10,000 Meetings,Events& Training 17,314 15,381 19,329 31,400 19,378 32,500 Total Operating Expenditures 57,088 204,425 109,790 135,328 63,695 141,410 Internal Service Charges 55,445 58,016 61,905 64,905 64,905 65,895 TOTAL EXPENDITURES $ 129,132 $ 278,794 $ 188,067 $ 216,605 $ 144,973 $ 223,722 FY 2018/19 WORKPLAN PRIORITIES Fiscal Responsibility-Monitor the economy to ensure that the City's operations are in sync with market trends,adjust City finances as needed, adopt financial policies that keep the City financially sound, and proactively seek opportunities to improve the strength of the City's finances. Community Engagement- Create an inclusive community and encourage a greater sense of connection among residents by strengthening relationships between the City and residents, providing residents with opportunities for participation in local government, supporting community events, celebrating diversity, working towards making Saratoga a more age-friendly community,and proactively addressing topics of interest to the community. Local Economy-Encourage the improvement and stability of the local economy and enhance business development by creating an environment that supports the City's business community. Sustainability-Monitor water consumption and energy use to identify and realize opportunities to make Saratoga a more sustainable community. City Ordinance Updates-Initiate the City's planning process to revise and update key City ordinances to ensure the City Code reflects Saratoga's regulatory needs and can be easily enforced. Long Term Planning-Continue long term planning efforts to maintain Saratoga's excellent quality of life and guide the City's future development. KEY SERVICES • Represent the residents and community of Saratoga • Provide community leadership as the legislative and policy-making body • Effectively represent the City of Saratoga in coordination with other local,county,state,and federal agencies • Oversee the City's Commissions and provide support to community organizations on emergent issues • Work with the community to identify needs and issues in the City CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY COMMISSIONS CITY COMMISSIONS OVERVIEW City Commissions and City Committees are designated bodies that provide specialized advice or other assistance to the City Council and staff. Commissioners apply for and are appointed by the City Council to serve four-year terms. Youth Commission are appointed to two-year terms. At least one City staff member is assigned to each Commission to provide support and to ensure agenda preparation, posting, minutes, and other meeting elements are fulfilled as required under the Brown Act. Currently,there are six active Commissions and two Committees to advise the Council on Commission specific issues. These include: Heritage Preservation Commission — The primary function of this seven-member Commission is to implement the City's Heritage Preservation Ordinance by working with the Council, the Planning Commission, and City staff. The Commission is responsible for considering proposed modifications to designated historic landmarks, historic lanes, and historic districts, advising the Community Development Department about projects that may affect heritage resources, conducting property surveys to establish an official inventory of heritage resources within the City of Saratoga,recommending names for new streets to the City's building official, and recommending designation proposals to the City Council for historic landmarks,historic lanes,historic districts, and heritage trees. The Commission meets the second Tuesday of each month. Library Commission — A five-member Commission that serves as an advisory body on library policies, budgets,plans, and procedures to the City Council, City staff, and the Santa Clara County Library District (SCCLD) staff. The Library building is owned by the City but operated by the SCCLD(a special district). The Library Commission does not have administrative authority over Library operations,but does participate in the general operational planning and related programs and policies. The Commission meets the fourth Tuesday of every other month. Parks & Recreation Commission — This five-member Commission advises the Council on a variety of matters as they relate to parks and recreation. Principally,the Commission serves as a conduit between the public and the Council by receiving public input, collecting information, and making recommendations to the City Council. The Commission meets the second Tuesday of every other month. Planning Commission — A seven-member Commission that works to maintain the unique character of Saratoga by ensuring that the physical development of the City is consistent with the environmental,social, and economic goals set forth in the City's General Plan. The Planning Commission is also responsible for considering appeals of decisions made by the Community Development Department and acting on applications for use permits,design review,and other planning approvals. The Commission meets the second and fourth Wednesday of the month,and holds additional meetings as needed. Traffic Safety Commission — The Traffic Safety Commission investigates, reviews, analyzes, and makes recommendations to the Council on traffic safety issues raised by the community and Public Safety Agencies. The seven-member Commission provides a venue for the public to express concerns regarding traffic safety issues. This Commission meets the second Thursday of every other month. Youth Commission—This eleven-member Commission works to enhance the wellbeing of local youth,offer positive influences to teens, and provide opportunities for youth involvement in the community. Youth Commissioners serve as teen leaders,communicate with the City Council on current youth issues,and plan, promote, and participate in community events, fundraisers, social, and educational activities. The Commission is comprised of middle and high school students appointed by the City Council for two-year terms. The Commission meets the second Tuesday of each month during the school year. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY COMMISSIONS Finance Committee—This standing Council Committee comprised of two Council members meets monthly, or as needed,to review City financial reports and budgets and to provide feedback to both staff and Council on financial matters. Pedestrian, Equestrian, Bicycle, Trails Advisory Committee (PEBTAC) — The PEBTAC's mission is to advise the City regarding the planning,acquisition,and development of trails and sidewalks and to maintain the trails network to enhance the quality of life in Saratoga. The PEBTAC serves as an advisory body to the Public Works Director. The Committee meets the third Tuesday of each month. Public Safety Task Force—The Public Safety Task Force was formed in 2017 by the City Council to serve in an advisory capacity until November 2018 and develop recommendations for enhancing public safety for the City Council to consider.The 5 members of the Task Force were each nominated by a member of the City Council.The Task Force meets on the fourth Thursday of each month. Public Art Committee—The Public Art Committee is a standing City Council committee comprised of two members of the City Council and was formed in 2016 to advise the City Council on opportunities for public art in Saratoga. The Committee meets as needed. BUDGET HIGHLIGHTS Notable Budget Changes: • None. 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 to the City Council on their related topics. 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. None of the other Commissions demand this level of time commitment, and therefore do not receive a stipend. The remaining expenditures for the Commission program are limited to training, meeting costs, and Commission specific expenditures, such as historical point of interest plaques the Heritage Preservation Commission provides for historical landmarks. Other expenses associated with City Commissions budget include memberships to Commissioner Associations that provide training or resources,meeting snacks,and miscellaneous supplies. 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY COMMISSIONS GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits TOTAL REVENUES $ - $ - $ - $ - $ - $ - EXPENDITURES Salaries and Benefits 12,918 13,564 13,564 13,564 13,564 13,564 Operating Expenditures Materials&Supplies 7,818 6,522 13,886 37,050 19,670 38,750 Fees&Charges - - - - - - Consultants&Contract Services - - - - - - Meetings,Events&Training 6,268 6,012 8,190 7,800 5 8,500 Total Operating Expenditures 14,086 12,533 22,076 44,850 19,676 47,250 Internal Service Charges 3,888 4,742 3,949 4,449 4,449 4,395 TOTAL EXPENDITURES $ 30,891 $ 30,840 $ 39,589 $ 62,863 S 37,689 $ 65,208 FY 2018/19 WORKPLAN PRIORITIES Community Engagement-Support efforts of the City Council to create an inclusive community by seeking input and involvement of residents in City matters and building a greater sense of connection between the City and its residents. City Council Support-Serve the City Council in an advisory capacity on designated subject matters. 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 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY COMMISSIONS \�y 0� A Rq to c, y 1956 ��ClFpRN�P CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY ♦ ♦ DEPARTMENT DEPARTMENT OVERVIEW The City Manager's Department is comprised of the City Manager's Office,the City Clerk's Office, and the Public Information Office. The City Manager's Department supports the Council's legislative and policy interests,provides management and leadership, and direction for the City organization. The City Manager's Office also supports Commissions, interacts with community groups, fosters community relationships and provides public awareness of municipal programs, services, and goals through effective community outreach, using avenues including the City website, media relations, and the Saratogan. In addition, the City Manager's Department liaises with other local agencies that provide services to the City of Saratoga through contract or other means,such as solid waste or recycling, public safety,and emergency preparedness. The Department is responsible for presenting an annual balanced fiscal year budget to City Council that reflects the most accurate revenue estimates and economic conditions at the time, assuring that City services are performed in accordance with City Council priorities and within the capabilities of the City's resources. The City Manager strives to keep the City Council advised of the City's financial condition and the future needs of the City on an ongoing basis, providing policy analysis,and overseeing numerous contract negotiations. The Department values its relationships with the community and fosters its partnerships with the Chamber of Commerce, Saratoga Area Senior Coordinating Council, Hakone Foundation, community access television station KSAR, and the administrators of other agencies and service districts in the City, including Santa Clara County Fire, local school districts,and West Valley College. DEPARTMENT OBJECTIVES The City Manager's Department works to implement a number of the City Council's Strategic Goals.These goals are noted below and reflected in the Performance Measures. Council Strategic Goal City Leadership: Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high quality leadership for the community. Department Objectives • Ensure the City Council is fully informed about City matters,provide support to City's elected leadership, and administer implementation of Council priorities • Promote effectiveness of City operations through collaboration, open communications, efficient coordination,creative thinking,and professional development • Respond to community interests and needs by being available to the public,making meetings accessible,and establishing relationships with community members • Develop a highly effective workforce to promote good governance ethics and efficiency • Support community building by coordinating City events, overseeing the event grant program, and facilitating special event permits • Inform residents through proactive communications efforts, including media relations, social media, and other methods of communication • Oversee open government efforts,including compliance with the Brown Act • Represent the City interests and involvement in regional issues CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY MANAGER'S DEPARTMENT Council Strategic Goal Fiscal Stewardship:Ensure fiscal responsibility and transparency,proactively seeking opportunities for improvement. Department Objectives • Promote a structurally balanced fiscal plan that is transparent and retains the City's fiscal health,preserves essential services,and implements Council goals • Foster an environment where proactive, responsible, and transparent actions and decisions are encouraged and valued • Encourage a conservative approach to budgeting Council Strategic Goal Public Safety: Provide a safe and secure community. Department Objectives • Engage community members in crime prevention programs and educational efforts to promote community policing efforts and thereby decrease criminal activities • Involve the community in emergency preparedness and disaster mitigation planning to reduce loss of life and property during a disaster • Prepare for emergencies through employee training and exercises to ensure continued government operations during a crisis • Manage the Sheriff's Office contract with the City of Saratoga • Provide staff support for the Public Safety Task Force • Manage the City of Saratoga Neighborhood Watch Program, including administration of the annual Neighborhood Watch Grant Council Strategic Goal Community Enrichment: Foster a community with an enriched and diverse culture and engaged citizenry. Department Objectives • Encourage community building events in Saratoga through the community event grant program, facilitation of special event permits,and promoting local events • Use a multitude of communication methods including the website,newsletter,radio,social media,and other traditional outreach methods,to reach a diverse range of residents • Promote resident participation in leadership roles by overseeing recruitment for positions on City Commissions and Committees Council Strategic Goal Environmental Sustainability:Proactively support environmental sustainability efforts. Department Objectives • Partner with other local agencies to address the causes and effects of climate change through changes in City policies and practices • Use City communication channels, including the website and newsletter, to inform residents of the importance of adopting more environmentally friendly practices • Support and host environmental events, such as Arbor Day or ribbon cuttings that showcase recently completed sustainable projects • Participate in regional efforts to increase sustainability of government operations CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY MANAGER'S DEPARTMENT BUDGET HIGHLIGHTS The primary function of the City Manager's Department is to support the City Council, maintain city records, and provide community outreach. As such,revenue in this department is limited to election related fees that occur every two years. As FY 2018/19 is an election year,filing and statement fees are budgeted in the City Clerk's program. Election related expenses will also spike the City Clerk's expenditure budget in FY 2018/19. With this election year open for three-seats,a higher amount of funding(than in the last two-seat election cycle)is added to pay for what the County will pass-through to the City. Associated election costs include a pro-rated charge for printing candidate statements, translation services, the polling station costs, etc. Additional expenditure increases are expected for communication efforts. With the 2017/18 budget,staffing in the City Manager's Office was restructured. Staffing levels were adjusted from 4.00 Full Time Equivalents(FTEs)plus a half-time temporary staff,to 4.9 FTEs through the creation of a Deputy City Manager position and the elimination of the temporary staffing. Additionally,the Assistant to the City Manager/City Clerk position was restructured to a full time City Clerk position in conjunction with a .10 FTE reduction in the Executive Assistant to the City Manager position. FY 2018/19 will reflect a full year that these staffing revisions are in effect. With this full level of staffing, the bulk of external City communications is now centralized in the City Manager's Office. Outreach materials,the website,media relations,and other public communications now administered by the City Manager's Office, expanded during FY 2017/18, and are funded for further efforts in FY 2018/19. A modest amount of funding was added to the Public Information Office program budget for a summer intern position to assist with these communication efforts. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY MANAGER'S DEPARTMENT GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Pemuts 934 401 21,400 - 3 25,150 Other Sources - - - - - TOTAL REVENUES $ 934 $ 401 $ 21,400 $ - $ 3 $ 25,150 EXPENDITURES Salaries and Benefits 699,518 674,348 695,662 844,488 765,291 919,488 Operating Expenditures Materials&Supplies 13,982 15,355 16,220 23,290 11,800 19,290 Fees&Charges 74,350 8,249 64,266 29,350 12,262 95,930 Consultant&Contract Services 31,711 24,750 35,258 93,950 67,892 124,448 Meetings,Events&Training 9,304 4,762 8,953 18,000 18,481 21,400 Total Operating Expenditures 129,348 53,116 124,697 164,590 110,435 261,068 Fixed Assets - - - - - - Intemal Service Charges 111,361 123,780 135,714 147,006 147,006 145,192 TOTAL EXPENDITURES $ 940,226 $ 851,244 $ 956,073 $ 1,156,084 $ 1,022,733 $ 1,325,748 DEPARTMENTAL EXPENDITURES - BY PROGRAM 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND City Manager's Office 569,824 527,923 449,212 564,534 545,512.26 607,659 City Clerk 370,402 323,321 395,717 372,744 286,370.99 449,499 Public hifomiation Office - 111,144 218,806 190,849.33 268,590 TOTAL GENERAL FUND $ 940,226 $ 851,244 $ 956,073 $ 1,156,084 1,022,733 $ 1,325,748 TOTAL DEPT EXPENDITURE $ 940,226 $ 851,244 $ 956,073 $ 1,156,084 1,022,733 $ 1,325,748 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY MANAGER'S DEPARTMENT DEPARTMENTAL ORGANIZATION CHART City Manager 1.0 FTE Deputy City Manager 1.0 FTE Administrative Exec Assist to CM/ Analyst Deputy City Clerk City Clerk 1.0 FTE .90 FTE 1.0 FTE CITY MANAGER'S DEPARTMENT STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded City Manager 1.00 1.00 1.00 1.00 1.00 Deputy City Manager - - - 1.00 1.00 City Clerk 1.00 1.00 1.00 1.00 1.00 Exec Asst to CM/Deputy City Clerk 1.00 1.00 1.00 0.90 0.90 Administrative Analyst I/II 1.00 1.00 1.00 1.00 1.00 TOTAL FTE's 4.00 4.00 4.00 4.90 4.90 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded CMO Intern 320 - 320 Executive Assistant(backfM) 136 750 960 96 Temporary Pool Hours - - - - TOTAL ANNUAL HOURS 456 750 960 416 CITY MANAGER'S DEPARTMENT STAFF - BY PROGRAM City Staff by Program 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Funded City Manager's Office 2.50 2.50 1.60 2.25 City Clerk 1.50 1.50 1.50 1.55 Public Information Office - - 0.90 1.10 TOTALS 4.00 4.00 4.00 4.90 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY MANAGER'S DEPARTMENT oj S A R,q 10 L y 1956 �40FpRN�P CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY MANAGER'S OFFICE CITY MANAGER'S OFFICE OVERVIEW The core services of the City Manager's Office are to: • Provide leadership,oversight,and direction for City functions • Provide comprehensive information,policy analysis,and support to the City Council • Provide support and guidance to the City's Commissions • Nurture community and intergovernmental relations • Cultivate public awareness of municipal services,programs,and activities The City Manager's Office has direct oversight responsibility for the City Clerk and Public Information Office, and coordinates with external agencies that provide Public Safety,Animal Control,and Emergency Preparedness services to the City. BUDGET HIGHLIGHTS Notable Budget Changes: • None The City Manager's Office primarily provides a managerial oversight and coordination role for City operations and City Council support,hence revenue is minimal or non-existent. City Manager Department duties vary as new initiatives and needs arise.For example,the City Manager's Office took over administration of the Neighborhood Watch Program and annual grant program, support for the Public Safety Task Force, the Weed Abatement Program, and staffing for the Public Art Committee. In FY 18/19, the City Manager's Office will work on several City Council initiatives, including implementation of new public health strategies. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY MANAGER'S OFFICE GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits S00 400 TOTAL REVENUES $ 800 $ 400 $ - $ - $ - $ - EXPENDITURES Salaries and Benefits 492,309 447,546 379,241 487,667 467,410 528,100 Operating Expenditures Materials&Supplies 11,055 12,659 12,001 6,450 4,351 6,350 Fees&Charges 4,025 5,735 3,686 5,620 4,342 5,620 Consultant&Contract Services - - 814 - - - Meetings,Events& Training 8,422 3,776 2,916 9,700 14,311 12,300 Total Operating Expenditures $ 23,502 $ 22,169 $ 19,416 $ 21,770 $ 23,005 $ 24,270 Fixed Assets - - - - - - Internal Service Charges 54,014 58,208 50,555 55,097 55,097 55,289 TOTAL EXPENDITURES $ 569,824 $ 527,923 $ 449,212 $ 564,534 $ 545,512 $ 607,659 FY 2018/19 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. Neighborhood Watch-In 2016,the City Manager's Office responded to community interest in Neighborhood Watch and developed a new Neighborhood Watch Program. There are now more than 40 neighborhoods with a registered Neighborhood Watch in Saratoga. To support the development and ongoing maintenance of Neighborhood Watch, the City also developed an annual grant program.Neighborhood groups can receive up to$300 to apply towards their Neighborhood Watch efforts. Examples of how funds have been used include food and supplies for block parties or production of informational flyers with crime prevention tips. Public Safety Task Force-In 2017,the City Council appointed 5 residents to serve on the Public Safety Task Force for a limited term,ending November 2018.The Task Force is responsible for developing recommendations to enhance public safety in Saratoga. The City Manager's Office is responsible for providing staff to support the Public Safety Task Force.Recent activities include coordination of a gathering of Neighborhood Watch and Community Emergency Response Team representatives and the Saratoga Safety Fair. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY MANAGER'S OFFICE Public Art Committee— In December 2016, the City Council made the Public Art Ad Hoc Committee a standing Committee comprised of two City Council Members. Staff from the City Manager's Office is providing support for the Committee and will be assisting with any public art programs or efforts that develop in FY 2018/19. KEY SERVICES • Provide comprehensive information,policy analysis,and support to the City Council • Provide oversight,leadership,and direction to City functions • Monitor state and federal legislation and effectively communicate the City's position on legislative proposals affecting Saratoga • Facilitate strong community and intergovernmental relations • Cultivate public awareness of municipal services,programs,and activities • Present a balanced budget to City Council each fiscal year which reflects the most accurate revenue estimates and economic conditions at the time • Assure that City services are performed in accordance with City Council priorities and within the capabilities of the City's resources • Inform the City Council,in a timely manner,of the City's financial condition and the future needs of the City on an ongoing basis CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY MANAGER'S OFFICE CITY MANAGER'S OFFICE STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded City Manager 1.00 1.00 1.00 1.00 1.00 Deputy City Manager - - - 0.80 0.80 City Clerk - - - - - Exec Asst to CM/Deputy City Clerk 0.50 0.50 0.50 0.45 0.45 Administrative Analyst I/II 1.00 1.00 0.10 - - TOTAL FTE's 2.50 2.50 1.60 2.25 2.25 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded CMO Intern 320 - - 320 Executive Assistant(backfiII) 136 375 480 96 Temporary Pool Hours - - - - TOTAL ANNUAL HOURS 456 375 480 416 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY MANAGER'S OFFICE PERFORMANCE OBJECTIVES & MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Ensure the City Council is fully informed about City matters and provide support to City's elected leadership. a. Meet with each member of the Council biweekly prior Yes Yes Yes Yes Yes to City Council Meetings: b. Prepare a weekly newsletter for City Council: 92% 92% 92% 94% 94% c. Provide Mayor and Council Members with Yes Yes Yes Yes Yes presentation materials and talking points for special events,media inquiries,and presentations: 2. Promote effectiveness of City operations through collaboration,open communications,efficient coordination, creative thinking,and professional development. a. Hold weekly meetings with the City's Management 98% 98% 93% 95% 95% team to discuss upcoming agenda items and share information: b. Make professional development and leadership Yes Yes Yes Yes Yes training opportunities available to Directors and City staff: c. Professional Association Memberships: 7 15 15 14 14 3. Represent the City interests and stay apprised of local and regional issues. a. West Valley Mayor's and Managers Meetings: 10 11 10 9 10 b. Informational or Professional Association Meetings 33 31 27 30 30 on Topics of interest to Cities in California,the Bay Area,and Santa Clara County. ACTIVITY & WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of City Council Meetings Per Year: 33 30 24 25 25 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY MANAGER'S OFFICE 0i S A Rq�.oC � y 1956 ��CrfipRN�P CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET OFFICECITY CLERK'S CITY CLERK'S OFFICE OVERVIEW The City Clerk is responsible for meeting the legal requirements related to maintaining City records and conducting City business, as set forth in the State of California Government Code and City Municipal Code. The City Clerk prepares City Council agendas and minutes,ensures the timely indexing of resolutions,ordinances, and agreements, and maintains an accurate record of all Council proceedings. Additional duties include: maintaining custody of the City Seal; administering oaths and affirmations; preparing and publishing legal notices; maintaining the Saratoga Municipal Code; processing board and commission recruitment applications; working with the Santa Clara County Registrar of Voters to conduct local elections in a fair and impartial manner; and receiving petitions and subpoenas on behalf of the City. BUDGET HIGHLIGHTS Notable Budget Changes: • The operating costs of the City Clerk's division has been increased to reflect the cost of the 2018 General Municipal Election 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 2018/19,the budget for the City Clerk has been increased as there will be an election for three positions on the City Council. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY CLERK'S OFFICE GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Pemuts 134 1 21,400 3 25,150 Other Sources - - - - - TOTAL REVENUES $ 134 $ 1 $ 21,400 $ - $ 3 $ 25,150 EXPENDITURES Salaries and Benefits 207,209 226,802 235,129 231,897 173,919 246,589 Operating Expenditures Materials&Supplies 2,927 2,696 1,233 4,740 4,905 4,740 Fees&Charges 70,325 2,514 58,767 22,105 5,073 87,125 Consultant&Contract Services 31,711 24,750 25,658 31,700 23,678 31,700 Meetings,Events&Training 882 987 4,629 5,500 1,995 6,100 Total Operating Expenditures 105,846 30,947 90,286 64,045 35,650 129,665 Fixed Assets - - - - - - Internal Service Charges 57,347 65,572 70,302 76,802 76,802 73,245 TOTAL EXPENDITURES $ 370,402 $ 323,321 $ 395,717 $ 372,744 $ 286,371 $ 449,499 FY 2018/19 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY CLERK'S OFFICE KEY SERVICES • Meet legal requirements as set forth in the State of California Government Code and City Municipal Code • Maintain City records through timely indexing of resolutions,ordinances,and agreements • Prepare City Council agendas and minutes • Maintain an accurate record of Council proceedings • Maintain custody of the City Seal • Administer Oaths and Affirmations • Prepare and publish legal notices • Maintain the Saratoga Municipal Code • Ensure Fair Political Practices Commission filings are made on a timely basis • Ensure that all elected officials,appointed officials,and required staff meet mandatory AB 1234 biennial training requirements • Administer recruitment process for Commission and Outside Agency Council appointments CITY CLERK'S OFFICE STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded City Manager - - Deputy City Manager - - - 0.10 0.10 City Clerk 1.00 1.00 1.00 1.00 1.00 Exec Asst to CM/Deputy City Clerk 0.50 0.50 0.50 0.45 0.45 Administrative Analyst V11 - - - - - TOTAL FTE's 1.50 1.50 1.50 1.55 1.55 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded CMO Intern - Executive Assistant(backfill) 375 480 TOTAL ANNUAL HOURS 375 480 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CITY CLERK'S OFFICE PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 - Ac tuals Ac tuals Actuals Estimated Budget 1. Promote transparency of City operations with scheduled noticing,recording,and prompt reporting of City Council meetings and actions. a. Percentage of time in compliance with Brown Act 100% 100% 100% 100% 100% requirements for noticing City Council meetings: b. City Clerk or designee in attendance and recording 100% 100% 100% 100% 100% actions at Regular City Council meetings: c. Percentage of Regular City Council Meeting Minutes 100% 100% 100% 100910 100% prepared and submitted to City Manager in time to be scheduled for approval on next Council agenda: 2. Maintain City documents and records to promote open government efforts,and in accordance with State law and City ordinances. a. Documents scanned into electronic repository. 16,793 21,597 5,792 11,251 12,450 b. Provide efficient and effective Records Management 100% 100% 100% 100% 100% by annually reviewing documents for retention and preparation for destruction: 3. Voluntarily comply with Public Records and Brown Act requirements. a. Percentage of Form 700 filed on time: 70% 68% 879/6 91% 90% b. Percentage of Public Record Requests fulfilled within Not 909/0 95% 98% 95% 10 days: Available 4. Promote resident participation in leadership roles by overseeing recruitment for positions on City Commissions and Committees. a. Number of Commission recruitments and 13 21 13 23 21 appointments processed: ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 i Actuals Actuals Actuals Estimated Budget 1. Number of City Council minutes prepared per year: 33 30 24 24 24 2. Number of boxes of City records processed for 52 49 51 61 53 disposal 3. Number of resolutions: 70 81 69 49 55 4. Number of ordinances: 12 12 10 4 10 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC INFORMATION PUBLIC INFORMATION OFFICE OVERVIEW The Public Information Office is responsible for community outreach to ensure that residents have access to timely, useful,and important information. The Public Information Office oversees and maintains many of the City's lines of communication with residents,including the City's website,Median Banner Program,social media accounts,monthly e-newsletter,annual Saratogan,email services,videos, surveys,event tabling, flyers,and press releases. The Public Information Office also acts as a liaison between various City departments and the community when it comes to communicating information about projects and events. BUDGET HIGHLIGHTS Notable Budget Changes: • Costs associated with outreach,such as Public Safety Task Force publications,translation services,and email services used for distribution of the City's email newsletter increased with the higher level of outreach activities. Due to the nature of the Public Information Office,no revenue is received in the Public Information Office program. Operating expenditure appropriations fund major communication efforts. Those include the annual State of the City Address and public outreach for the Public Safety Task Force committee efforts. 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. In 2017/18,the costs associated with KSAR Services for recording and televising City Council and Planning Commission meetings,as well as other City events,was added to the Public Information Office budget. In FY 2018/19,funding has been added to the budget to allow certain City documents to be translated into Chinese. This will include the monthly Saratoga Source, as well as a few other key publications. Additionally, funding has been included to allow for a summer intern that will assist with communication efforts.At the recommendation of the Public Safety Task Force,funding for a quarterly public safety postcard has also been incorporated in the budget.This postcard will include a variety of public safety recommendations and will be mailed directly to all residents in Saratoga. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC INFORMATION OFFICE GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Other Sources - - - TOTAL REVENUES $ $ - $ - $ - $ - $ - EXPENDITURES Salaries and Benefits - 81,292 124,924 123,962 144,799 Operating Expenditures Materials&Supplies - - 2,986 12,100 2,544 8,200 Fees&Charges - - 1,813 1,625 2,847 3,185 Consultant&Contract Services 8,787 62,250 44,214 92,748 Meetings,Events& Training 1,409 2,800 2,175 3,000 Total Operating Expenditures 14,995 78,775 51,781 107,133 Fixed Assets - - - - Intemal Service Charges 14,857 15,107 15,107 16,658 TOTAL EXPENDITURES $ - $ - $ 111,144 $ 218,806 $ 190,849 $ 268,590 FY 2018/19 WORKPLAN PRIORITIES • Community Outreach - The Public Information Office will continue the City's efforts to improve communications through the use of traditional media(press releases,flyers), social media(Facebook,Nextdoor, Twitter),online services(Constant Contact,Peak Democracy),as well as through the City's website and tabling at events. This outreach will enhance the City's engagement with the community by informing the public of important City-related matters,such as meetings,events,and projects. • Photo Library-Photographs and images have become increasingly important in community outreach. They help grab the attention of the public and enhance the City's messaging. In summer 2014,the City hired a photography intern who bolstered the City's photo library. The City has used many of these pictures multiple times;however, the City has changed since the photos were taken. Updated photos of the City are needed for outreach efforts, especially through social media,flyers,videos,and on the City's updated website. • Centralized Communications-With an ever-increasing number of communications tools and launch of a new City website,the City has centralized public communications as much as possible through the Public Information Office. This ensures information from the City is shared in a manner that is consistent, accessible, methodical, and timely. As a result,the City hopes to improve effectiveness of communications and reach a broader audience. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 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 PUBLIC INFORMATION OFFICE STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded City Manager - - Deputy City Manager 0.10 0.10 City Clerk - - Exec Asst to CM/Deputy City Clerk - - - Administrative Analyst 1/II 0.90 1.00 1.00 TOTAL FTE's - 0.90 1.10 1.10 Temporary Staff 2014/13 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded CMO Intern TOTAL ANNUAL HOURS CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC INFORMATION OFFICE PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Inform residents through proactive communications efforts,including media relations,social media,and other methods of communication. a. Produce City Newsletter,Saratogan,and monthly 4 4 4 13 13 Saratoga Source: b. Provide information about City news and activities on Yes Yes Yes Yes Yes the City website,Facebook page,and Nextdoor site: c. Send e-mail notifications for Council agendas, 95% 95% 95% 100% 100% Commission meeting agenda/minutes,publication of Saratogan,weekly Sheriff's Office updates and community events updates: d. Produce outreach materials,such as the Budget in Yes Yes Yes Yes Yes Brief,that provide an overview on City operations: 2. Encourage community building events in Saratoga through the community event grant program,facilitation of special event permits,and promoting local events. a. Facilitate and issue permits for special events: 8 12 2 Moved to Moved to Comm Dev Comm Dev b. Accept applications for Community Event Grant 12 17 16 16 16 Program: ACTIVITY AND WORKLOAD HIGHLIGHTS 201VIS 2015/16 2016/17 2017/18 2018/19 - Ac tuals Ac tuals Ac tuals Estimated Budget 1. City of Saratoga Facebook Page Fans: 650 1194 1420 1535 1650 2. Number of Median Banner Program reservations: 24 31 51 44 48 3. Number of Banners displayed through Median Banner 115 122 227 193 190 Program: 4. Number Community Event Grant Programs funded: 11 16 15 15 15 5. Events hosted by City: 9 6 5 19 16 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ADMINISTRATIVE SERVICES DEPARTMENT DEPARTMENT OVERVIEW The Administrative Services Department provides oversight and support for the City's financial, human resources, administrative, and technology operations. As the department's Finance, Human Resources and Administrative Services divisions are centralized functions providing administrative, financial, and legally required comprehensive support for citywide operations, the programs are included within the General Fund. The Information Technology (IT) Services division primarily provides both centralized and user specific technology support at varying service levels as requested or required by City departments, and is therefore an Internal Service Fund(ISF)program, as are the two equipment usage and replacement funds: Information Technology Equipment Replacement; and Office Support Services. Internal Service Fund charges allocated to the various department programs proportionately account for the usage of services,equipment,and identifiable support provided. This allows the City to better identify program costs for functions and services. DEPARTMENT OBJECTIVES The Administrative Services Department directly supports several of the City Council's Strategic Goals through implementation of the department's objectives, as listed below. Performance Measures in support and service programs(programs with staffing)provide information on the Department's attainment of these objectives. Council Strategic Goal Fiscal Stewardship: Ensure fiscal responsibility and transparency,proactively seeking opportunities for improvement. Department Objectives • Maintain responsible,sustainable,and enforceable fiscal policies and practices • Establish and uphold effective internal controls • Maintain excellent fiscal status with efficient use of assets and resources • Utilizing long-range fiscal planning tools, prepare structurally balanced fiscal plans that retain the City's fiscal health,preserve essential services,and implement Council's goals • Provide timely and accurate financial reporting in compliance with accounting standards and regulations Council Strategic Goal City Leadership: Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high quality leadership for the community. Department Objectives • Provide fair and proper administrative and personnel decisions that foster a proactive, responsible, and transparent government • Recruit,retain,and develop a highly effective workforce to promote good governance ethics • Promote organizational effectiveness through streamlined internal processes, leadership, teamwork, and innovation • Support transparent government initiatives CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET ADMINISTRATIVE SERVICES DEPARTMENT Council Strategic Goal Facility and Infrastructure: Maintain the City's facilities and infrastructure in a safe, secure, sustainable, and cost effective manner. Department Objectives • Ensure technology infrastructure functions properly,is up-to-date,and secure • Provide for well-maintained,cost-effective equipment and infrastructure • Protect the City's technology related assets from unauthorized use BUDGET HIGHLIGHTS The department's General Fund budget consists of the Finance, Human Resources, and Administrative Services programs. Office Support,IT Services,and IT Replacement programs are all funded by the Internal Service Funds. General Fund programs are relatively stable year over year. Only Finance has a regular revenue stream;from Business License related service fees. Human Resources and Administrative Services programs are primarily oversight and support functions and do not generate revenues. The Internal Service Fund program revenues consist mainly of service chargebacks from other city programs for allocated support of IT services, equipment, and office support expenses. On the expenditure side, General Fund expenditures reflect staffing costs, operational supplies and services, and internal service fund charges. Internal Service Fund expenses consist of staffing, supplies, equipment costs, leases, and annual support/license fees. With ever-increasing technology, information, and administrative support demands, the department's workload has expanded over time. With the hiring of a Finance Manager in mid-FY 2013/14,and a transference of duties over the remainder of the fiscal year,an Administrative Services program was added to the department,effective with the FY 2014/15 budget. A portion of the Director's FTE and an Accounting Technician was shifted from Finance into the Administrative Services program to reflect the position's broadening focus on policy and procedural development, additional long-range planning and financial communications, and the development of departmental efficiencies and a city-wide administrative management tool. The department's General Fund operating budget is typically steady as administrative and support oriented functions generally reflect staff time rather than materials, fees, or consultant and contract services, therefore daily operating expenses do not vary significantly from year-to-year. The budget shift from Finance to Administrative Services was reflected in a realignment of expenditures between the programs,with costs holding steady at the departmental level. In FY 2018/19, the Department's budget will see an anomaly in the Administrative Services program budget. A $40,000 increase reflects the potential one-time purchase cost for a document management system(s) to build efficiencies into the capital budget and financial statement preparation functions. If purchased, ongoing annual software licensing and support costs would be required,but the overall operational budget would decrease. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET ADMINISTRATIVE SERVICES DEPARTMENT GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits 45,085 44,850 43,030 41,800 42,965 41,750 Charge for Services - - - - - - Other Sources 11,496 5,297 21,246 5,250 5,168 5,000 TOTAL REVENUES $ 56,581 $ 50,147 $ 64,276 47,050 $ 48,133 $ 46,750 EXPENDITURES Salaries and Benefits 1,045,287 1,077,571 1,108,824 1,158,849 1,145,416 1,253,773 Operating Expenditures Materials&Supplies 9,132 7,515 9,240 16,700 7,080 13,570 Fees&Charges 17,842 18,162 21,069 21,124 22,010 24,304 Consultants&Contract Svcs 52,824 69,377 46,651 87,300 51,227 134,686 Meetings,Events&Training 14,665 14,608 10,225 19,650 13,976 22,450 Total Operating Expenditures 94,463 109,661 87,194 144,774 94,294 195,010 Fixed Assets - - - - - - Internal Service Charges 150,297 165,416 177,052 181,552 181,552 160,927 TOTAL EXPENDITURES $ 1,2909047 $ 1,352,648 $ 1,373,060 1,485,175 $ 1,421,262 $ 1,609,710 DEPARTMENTAL EXPENDITURES - BY PROGRAM 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND Financial Services 778,447 797,281 813,531 865,283 827,765 878,973 Human Resources 325,218 332,482 329,997 362,032 358,625 397,114 Administrative Services 186,382 222,885 229,531 257,860 234,872 333,623 TOTAL GENERAL FUND 1,290,047 1,352,648 1,373,060 1,485,175 1,421,262 1,609,710 INTERNAL SERVICE FUNDS Office Support Services 46,229 44,606 46,235 71,750 51,090 59,850 Information Technology Services 432,550 467,583 497,208 613,850 532,339 637,801 IT Replacement Fund 23,687 44,762 84,040 89,800 41,569 191,250 TOTAL INT SERVICE FUNDS $ 502,466 $ 556,952 $ 627,482 775,400 624,998 $ 888,901 TOTAL DEPT EXPENDITURE $ 1,7929513 $ 1,909,600 $ 2,000,542 2,260,575 2,046,260 $ 2,498,611 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET ADMINISTRATIVE SERVICES DEPARTMENT DEPARTMENTAL ORGANIZATION CHART Finance&Admin Services Director 1.0 FTE Finance Manager Human Resources If Supervisor 1.0 FTE Manager 1.0 FTE 1.0 FTE Accountant Human Resources IT Technician .90 FTE Technician 1.0 FTE .75 FTE Lead Accounting Technician 1.0 FTE Accounting Technician 1.0 FTE Accounting Technician 1.0 FTE CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET ADMINISTRATIVE SERVICES DEPARTMENT ADMINISTRATIVE SERVICES DEPARTMENT STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Administrative Services Director 1.00 1.00 1.00 1.00 1.00 Finance Manager 1.00 1.00 1.00 1.00 1.00 Accountant I/11 0.90 0.90 0.90 0.90 0.90 Accounting Technician/Lead 3.00 3.00 3.00 3.00 , 3.00 Human Resources Manager 0.90 0.90 0.90 0.90 0.90 Human Resources Technician 0.65 0.65 0.65 0.65 0.65 Information Technology Administrator 1.00 1.00 1.00 1.00 1.00 Information Technology Technician 1.00 1.00 1.00 1.00 1.00 TOTAL FTE's 9AS 9AS 9AS 9.45 9AS Temporary Staff Hours 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Student intern 320 - Graphics Design Assistant - 150 TOTAL ANNUAL HOURS 320 150 - ADMINISTRATIVE SERVICES DEPARTMENT - BY PROGRAM City Staff by Program 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Funded Finance 5.00 4.75 4.75 4.75 4.50 Human Resources 1.85 1.85 1.85 1.85 1.85 Administrative Services 0.70 0.95 0.95 0.95 1.20 Information Technology 2.10 2.10 2.10 2.10 2.10 TOTALS 9.65 9.65 9.65 9.65 1 9.65 The Adminstrative Services Departmental Staff schedule includes General Fund and Internal Service staffing assigned within this department. The.10 FTE of the HI2 Manager and.10 FTE of the HI2 Technician funded and assigned to the Workers Compensation program in the Non-Departmental section are not reflected in the Department's FTE total,but are reflected above in the Total Staff-by Program FTE schedule. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET ADMINISTRATIVE SERVICES DEPARTMENT \�y 0j s A Rq TOG C. y _t 1956 F0RN�P CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET FINANCE SERVICES FINANCE SERVICES OVERVIEW The Finance Division program functions to assure both legal and fiscal accountability to the public through responsible,sustainable,and enforceable fiscal policies and practices. The program provides financial oversight and administration of accounting functions for all the City's funds and accounts; monitors the Annual Operating and Capital Budgets for fiscal and operational accountability;coordinates the annual financial audit and preparation of the Comprehensive Annual Financial Report (CAFR) to 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 HIGHLIGHTS Notable Budget Changes: • Budgeted salary and benefit expenditure growth reflects a salary survey adjustment,cost of living increases, and step increases. • Budgeted financial audit expense was increased$15,000 above the normal financial audit fee to provide for potential required audit services in conjunction with grant funded CIP projects requirements. The FY 2018/19 Finance Division budget reflects anticipated revenues and expenditures associated with providing financial operation oversight and services. Service fee revenue associated with processing Business Licenses is accounted for in the Finance Division, whereas the tax revenue collected under this licensing program flows to the General Administration program in the Non-Departmental Section. Late fees continue to be collected from delinquent submittals and from the ongoing compliance audit for non-filers. The audit amount has steadily decreased over the years as the auditors have identified the majority of unlicensed businesses in the first few years. Unlicensed businesses are assessed late fees to a full amount of the license itself, for up to a maximum three years in arrears. While new business license processing fee revenue has dropped slightly, renewal license fee revenue is expected to remain relatively steady because of the ongoing business license compliance audit and the stable economy. Division expenditures remain steady; funding requirements reflect basic operational expenses, including bank fees, operational supplies,annual audit services,and required reporting fees and services. Professional association fees and limited training support ongoing educational needs to keep current with the City's financial oversight duties. The Finance Division's largest operational expense is the annual financial audit,which is required by State law. The annual audit expense amount was increased to$47,500 in FY 2018/19 in anticipation of increased audit services to address multiple unknowns: singe audits for several large grant-funded capital projects in process;the issuance of the Arrowhead Community Facility District bond; and potential federal or state audit requirements for the February 2017 storm-related disaster claim reimbursements. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET FINANCE SERVICES GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits 45,085 44,850 43,030 41,800 42,965 41,750 Charge for Services - - - - - - Other Sources 11,496 5,297 6,011 5,250 5,168 5,000 TOTAL REVENUES $ 56,581 S 50,147 $ 49,041 $ 47,050 $ 48,133 $ 46,750 EXPENDITURES Salaries and Benefits 611,118 608,580 632,548 654,208 643,188 675,033 Operating Expenditures Materials&Supplies 7,679 6,270 8,403 15,500 6,768 12,500 Fees&Charges 8,685 8,301 9,529 9,559 11,720 13,039 Consultants&Contract Services 42,016 52,309 36,101 53,900 37,219 61,400 Meetings,Events&Training 2,445 4,990 2,685 5,350 2,104 5,500 Total Operating Expenditures 60,825 71,869 56,718 84,309 57,811 92,439 Fixed Assets - - - - - - Internal Service Charges 106.504 116,832 124,266 126,766 126,766 111,501 TOTAL EXPENDITURES $ 778,447 $ 797,281 $ 813,531 $ 865,283 $ 827,765 $ 878,973 FY 2018/19 WORKPLAN PRIORITIES Reporting Enhancements - Staff will continue to improve reporting preparation processes for publication of the Comprehensive Annual Financial Report,Monthly Treasurers Reports, and Quarterly Budget Status Reports, with a focus on enhanced presentation,documentation,compliance requirements,and readability. Debit Card Processing- With credit card contract revisions completed in FY 2017/18, payment processes have improved, transactional costs have declined, and fees were credit card fees were revoked. Staff will continue to monitor credit card activity and investigate look to integrate debit card processes into the available payment options. Banking Services-Staff will review the City's current banking service options,service and reporting tools,and bank fees,and determine the productivity of preparing a banking services RFP. Financial Software Enhancements-The current corporate financial software owner(Superion)continues to enhance the Finance Plus and Cognos Reporting software in its process to integrate their newly purchased software product TRAK-iT to make it a truly compatible software options. The City currently utilizes TRAK iT for development, arborist,building permit,and business license purposes. Comprehensive Fee Schedule Update-Due to ongoing changes in resources and processes,the City will investigate whether FY 2018/19 is an appropriate time to conduct a cost study evaluation of City fees. With ten years of reliable data,over both an economic downturn and an economic growth cycle, CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET FINANCE SERVICES KEY SERVICES • Monitor the City's revenue and expenditures to ensure compliance with the annual operating and capital budget appropriations—in accordance with best practices and standards • Coordinate the annual audit of the City's financial statements and preparation of the Comprehensive Annual Financial Report(CAFR) • Maintain the City's financial information system for record-keeping and reporting of all financial transactions • Provide Accounts Payable and Payroll disbursement and reporting services; Accounts Receivable invoicing, revenue collection,and cash reconcilement;and Business License Tax processing and auditing services • Provide accounting,arbitrage reporting,and claim reimbursement services for bond issues • Provide oversight of procurement functions including Purchase Order processing,financial tracking of contracts, vendor resolution issues,and proper accounting allocations FINANCE SERVICES STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Administrative Services Director 0.10 0.10 0.10 0.10 0.10 Finance Manager 1.00 1.00 1.00 1.00 1.00 Accountant VU 0.90 0.90 0.90 0.90 0.90 Accounting Technician/Lead 3.00 2.75 2.75 2.75 2.50 Human Resources Manager - - - - - Human Resources Technician Information Technology Administrator Information Technology Technician - - - - - TOTAL FTE's 5.00 4.75 4.75 4.75 4.50 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Student Intern Graphic Design Assistant TOTAL ANNUAL HOURS CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET FINANCE SERVICES PERFORMANCE OBJECTIVES & MEASURES 201VIS 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Actuals Estimated Budget 1. Assure legal and fiscal accountability to the public, in compliance with established accounting standards. a. Annual Financial Statements receive an'Unmodified Yes Yes Yes Yes Yes Opinion'from the City's independent auditor: b. City's Comprehensive Annual Finance Report meets Yes Yes Yes Yes Yes the Governmental Finance Officer Association (GFOA)'Certificate of Achievement of Excellence in Financial Reporting'program standards and receives award: 2. Provide timely and accurate financial reporting within specified deadlines. a. Ratio of State and County regulatory and financial 19 of 20 20 of 20 20 of 20 20 of 20 20 of 20 reports completed and filed by deadlines: b. Percent of time department revenue and expenditure 100% 99% 100% 100% 100% reports are completed within 30 days of month-end: 3. Provide financial oversight and administer accounting functions for City funds and accounts. a. Percentage of Accounts Payable invoices processed 100% 99.5% 100% 100% 100% accurately and on-time: b. Percentage of Payroll checks paid accurately and on- 100% 1009/0 100% 100% 100% time: c. Percent of time bank statements are reconciled to 100% 1009/0 100% 100% 100% general ledger within 45 days of month-end: 4. Proactively manage the City's finances to maintain excellent fiscal status. a. Uphold(Moodys)highest bond credit rating of Aaa: Yes Yes Yes Yes Yes b. Amount contributed to pay down CalPERS Unfunded $500,000 $500,000 $500,000 $750,000 $1,000,000 Accrued Liability per Citys accelerated payment plan: c. Meet and maintain Fund Balance Reserves fiscal Yes Yes Yes Yes Yes policy requirements: ACTIVITY & WORKLOAD HIGHLIGHTS ' 2014/1Stuals 2015/16 2016/17 Estimated 2018g19 Actuals Actuals Actuals Estimated Budget 1 Number of Cash Receipt batches processed annually: 1,260 1,261 1,200 1,224 1,230 2 Number of Business Licenses issued annually: 2,238 2,260 2,130 2,184 2,200 3 Number of invoices entered into Accounts Payable 7,106 7,273 7,092 7,085 7,150 system: 4 Average number of Accounts Payable checks issued 51 53 49 51 51 weekly: 5 Number of voided checks -due to processing errors: 0 1 1 1 0 6 Number of voided checks -due to lost/destroyed 30 39 20 18 6 checks,printer error,or incorrect invoice information: 7 Number of payroll checks,paycheck vouchers,and 1,850 1,952 1,868 1,943 1,920 stipends issued annually. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET :• HUMAN RESOURCES HUMAN RESOURCES OVERVIEW The Human Resources Division provides the full scope of professional, technical, and support services to attract, retain, and develop a professional and committed workforce that provides excellent internal and external customer service and promotes a safe workplace; supports the use of best practices to reduce workers' compensation claims; and ensures that the City complies with laws and regulations regarding employment and labor relations, including establishing and monitoring the City's personnel practices and policies consistent with employment law updates. Human Resources core services include: recruitment and selection; employee and labor relations; classification and compensation; benefit design, negotiation and administration; performance management; records management; employee training (both legally mandated and discretionary); policies and procedures; employment and labor law compliance; special projects in support of City operations;and management of a variety of City programs including: Employee Recognition; "Volunteer Saratoga"; Emergency Volunteer Management; Workers Compensation, Safety and Wellness; Custodian of Records Department of Justice; and the Department of Motor Vehicles' Employee Pull Notice(EPN)program. BUDGET HIGHLIGHTS Notable Budget Changes • Budgeted salary and benefit expenditure growth reflects cost of living and step increases. The Human Resources program focus is to support citywide personnel related functions. There are no direct service activities that generate revenues. Staffing includes .90 FTE of the Human Resources Manager and .65 FTE of the Human Resources Technician(the remaining .10 FTE for each of these positions is included in the Workers Compensation program under the Non- Departmental Section). The Administrative Services Director allocates .10 FTE to this program for division administration oversight. The Human Resources expenditure budget typically remains constant from year to year unless there are budgetary or organizational changes. With none expected,the ongoing operational expenditures include:membership in the Santa Clara County Bay Area Employee Relations Services (BAERS), membership with CalOpps, NEOGOV online performance appraisal system annual license and software support, and contract training services. Also included is operational funding for supplies,association dues,employee and organizational training,and the employee assistance program(EAP). BAERS (www.bayareaers.org) is a joint powers agency which provides online access to relevant classification,benefits and compensation data of Northern California agencies for survey analysis and classification studies. CalOpps (www.calopps.org) is a public sector job board for recruiting regular, temporary, and volunteer positions. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET HUMAN RESOURCES GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Other Sources 15,235 TOTAL REVENUES $ - S - $ 15,235 $ - $ - $ - EXPENDITURES Salaries and Benefits 262,838 270,085 267,871 291,161 289,771 327,374 Operating Expenditures Materials&Supplies 1,244 842 746 700 312 570 Fees&Charges 9,157 9,167 9,866 10,020 9,196 9,990 Consultants&Contract Services 10,808 10,669 10,550 13,400 12,008 13,286 Meetings,Events&Training 11,338 9,046 5,963 11,000 11,587 13,850 Total Operating Expenditures $ 32,547 $ 29,724 $ 27,125 $ 35,120 $ 33,104 $ 37,696 Internal Service Charges 29,833 32,673 35,001 35,751 35,751 32,044 TOTAL EXPENDITURES $ 325,218 $ 3329482 $ 329,997 $ 362,032 $ 358,625 $ 397,114 FY 2018/19 WORKPLAN PRIORITIES Classification and Compensation-Conduct classification studies and compensation surveys,update job descriptions as needed,and respond to outside requests for City wage and benefit information. Performance Management- Implement into the FY2018/19 performance evaluation process the re-design of the NEOGOV on-line Performance Appraisal System evaluation templates. 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 AB 1825 mandatory harassment training(required every two years by law and required within six months of hire of supervisory positions), management and supervisory workshops through the LCW consortium,and other training. Volunteer Saratoga Program - Increase opportunities and promotion efforts of the City's "Volunteer Saratoga!" program,including outreach to the local schools. Employee Policies and Procedures - Create new or modify existing policies and procedures as needed and in compliance with legal requirements. Negotiations/Collective Bargaining Agreements-Complete negotiations for successor Memorandum of Understanding's(MOU's)by June 30,2019.Conduct labor and compensation research and analysis for negotiations with the City's collective bargaining units. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET 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 HUMAN RESOURCES STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Administrative Services Director 0.10 0.10 0.10 0.10 0.10 Finance Manager - - - - - Accountant I/II Accounting Technician/Lead - - - - - Human Resources Manager 0.90 0.90 0.90 0.90 0.90 Human Resources Technician 0.65 0.65 0.65 0.65 0.63 Information Technology Administrator - - Information Technology Technician TOTAL FTE's 1.65 1.65 1.65 1.65 1.65 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Student Intern 320 Graphic Design Assistant - TOTAL ANNUAL HOURS 320 * This schedule reflects FTEs as funded in the Human Resources Program. Portions of FTEs assigned to Internal Service Funds or other programs,are reflected in the appropriate FTE schedules. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET HUMAN RESOURCES PERFORMANCE OBJECTIVES AND MEASURES 201VIS 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Actuals Estimated Budget 1. Support transparency in government activities through providing timely reporting and/or responses to outside agencies. a. Percent of time the Human Resources Division 100% 100% 1000/0 100% 1000/0 provides reports to outside agencies on or before the deadline: 2. Provide effective and efficient employee benefit contract administration. a. Manage contracts to ensure compliance with current 100% 100% 100% 100% 1009/0 laws,memoranda of understanding,and City policies and procedures: b. Regularly review contracts to ensure cost-effective 1009/0 1009/0 1009/0 100% 100% insurances and benefits that meet the needs of the organization are provided: 3. Provide fair and proper administrative and personnel decisions that foster a proactive, responsible,and transparent government. a. Percent of time personnel policies are available on 100% 1009/0 1009/0 100% 100% the City's website: b. City personnel policies are updated regularly: Yes Yes Yes Yes Yes ACTIVITY AND WORKLOAD HIGHLIGHTS 201VIS 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimate Budget 1. Number of recruitments conducted for regular, benefited positions: 6 6 8 5 5 2. Number of employment applications received and 314 716 548 435 450 processed: 3. Total number of employees (benefited,non-benefited, 76 69 75 89 75 and temporary,part-time and full-time): 4. Number of participants in Volunteer Saratoga program: 150 235 254 255 260 S. Value of volunteer hours: $50,000 $70,680 $62,000 $68,000 $70,000 6. Number of meet and confer process hours: 520 210 52 40 200 7. Number of training hours offered to employees: 52 36 56 56 56 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET ADMINISTRATIVE SERVICES ADMINISTRATIVE SERVICES OVERVIEW The Administrative Services program was established effective with the FY 2014/15 budget to reorganize departmental duties and separate administrative oversight functions from the other distinctly organized functions within the Administrative Services Department. With the addition of the Finance Manager position to the department in mid-FY 2013/14,direct fiscal oversight duties transferred to the Finance Manager to allow the Director to focus on departmental leadership and strategic administrative matters, and to improve both departmental and citywide efficiencies. Under the Administrative Services program, efforts will focus on policy and procedural development, long-range forecasting and financial communication, strategic and financial planning,coordination and development of the City's annual budgets,records management and documentation, development and implementation of administration management tools and technology related process improvements,and professional and technical assistance and support to other departments relative to financial and administrative matters. Activities will vary year by year as projects and duties are completed, and with various assignments in support of Council and City Manager initiatives and direction. BUDGET HIGHLIGHTS Notable Budget Changes: • $40,000 of additional funding was budgeted for a financial management system to improve the Capital Budgeting and Annual Financial Report preparation processes. • $20,000 was re-budgeted to provide for potential resources required for the planned intranet project that will enhance and facilitate internal operations,communication,and documentation. In the event of a disaster and cost recovery process,the City's administrative and financial policies would be subject to a highly critical and restrictive review. These policies are the foundation upon which cost recovery decisions are made. Workload priorities include the development and revision of high priority policies to prepare for this rigorous process should it occur. As cost recovery planning and preparations are extensive,this activity will continue to be a high priority function for many years. Additional efforts will focus on the management and tracking of financial documents and records, the development of budget and administrative management tools as well as the development of recession planning policies, an asset database,and assessment of internal service fund allocations. With the focus on high-level staff driven analytical, financial, and administrative management, operational budget requirements are typically limited to staffing costs and a small amount for operational supplies,training,and internal service charges. The FY 2018/19 budget includes a one-time allocation of $20,000 for a data collection or management tool or other resources associated with the implementation of the intranet,if needed,and another$40,000 for a budget management/financial document reporting tool to improve data management and record-keeping efficiencies. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET ADMINISTRATIVE SERVICES GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Other Sources TOTAL REVENUES $ - S - $ - $ - $ - $ - EXPENDITURES Salaries and Benefits 171,331 198,906 208,405 213,480 212,458 251,366 Operating Expenditures Materials&Supplies 209 402 91 500 - 500 Fees&Charges - 694 1,674 1,545 1,094 1,275 Consultants&Contract Services - 6,400 - 20,000 2,000 60,000 Meetings,Events&Training 882 572 1,577 3,300 285 3,100 Total Operating Expenditures 1,091 8,068 3,342 25,345 3,379 64,875 Internal Service Charges 13,960 15,911 17,785 19,035 19,035 17,382 TOTAL EXPENDITURES $ 186,382 $ 222,885 $ 229,531 $ 257,860 $ 234,872 $ 333,623 FY 2018/19 WORKPLAN PRIORITIES Cost Recovery Planning-This large,long-term project represents efforts to prepare the City for purchasing,financial tracking and reporting duties,both during, and after,an emergency. The focus will be on researching and preparing emergency policies and forms in conformance with claim reimbursement requirements. Fiscal and Administrative Policies-Staff will research, document, and ultimately develop a comprehensive set of City-wide fiscal and administrative policies. This project is very large and will take several years to complete. Financial Records Management-Finalize the conversion of historical and permanent paper financial records into digital format, and organize existing digital format files into a readily accessible directory library structure in the City's Laserfiche program. Administrative Management Development-The City will implement an internal website system to provide readily accessible financial and administrative information and resources. Asset Database Development-Staff will work on the development of a fixed asset management tool to better track resources and funding requirements for budget preparation and information tracking purposes. Contract Management-Staff will work on the development of a contract database tool to track City-wide contract life cycles for comprehensive data collection and expiration dates. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET 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 ADMINISTRATIVE SERVICES STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Administrative Services Director 0.70 0.70 0.70 0.70 0.70 Finance Manager - - - - - Accountant I/II - - - - Accounting Technician/Lead 0.25 0.25 0.25 0.50 Human Resources Manager - - - - Hainan Resources Technician Information Technology Administrator - Information Technology Technician - - TOTAL FTE's 0.70 0.95 0.95 0.95 1.20 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Student Intern - Graphics Assistant 150 TOTAL ANNUAL HOURS 150 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET ADMINISTRATIVE SERVICES PERFORMANCE OBJECTIVES AND MEASURES 201VIS 2015/16 2016/17 2017/18 2018/19 Actuals Actuals Actuals Estimated Budget 1. Deliver fiscal and administrative support to assist Council with understanding and keeping current on the City's financial and operational health, in the effort to preserve essential services, maintain City infrastructure,and achieve other Council goals. a. Provide Council and City Management with long-range Yes Yes Yes Yes Yes fiscal planning tools in preparation of annual budget preparation and review processes: b. Keep abreast of fiscal and administrative impacts to Yes Yes Yes Yes Yes the City and communicate pertinent information to City management: c. Protect the City's assets from authorized use Yes Yes Yes Yes Yes through establishing and updating policies and practices that regualate expenditures,review fiscal activities,and secure facilities,vehicles &equipment, and information systems. 2. Prepare accurate budget workplans in compliance with standard budgeting practices. a. Percent of time actual expenditures do not exceed a 100% 100% 100% 100% 100% fund's approved budget appropriations: b. Governmental Finance Officer Association(GFOA) Yes Yes Yes Yes Yes 'Certificate of Achievement of Excellence in Budgeting'awarded to the City. ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Actuals Actuals Actuals Budget Budget 1. Present Mid-year Budget Review at annual Council Yes Yes Yes Yes Yes Retreat: 2. Present Five Year forecast at annual Council Retreat: Yes Yes Yes Yes Yes 3. Update fiscal and administrative policies: Yes Yes Yes Yes Yes 4. Research and inform City Management of notable fiscal Yes Yes Yes Yes Yes or administrative matters: CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET OFFICE SUPPORT PROGRAM OFFICE SUPPORT OVERVIEW The Office Support program accounts for photocopy equipment leases, copy supplies, postage machine lease, and postage and related fees on a centralized basis. Usage expenses are allocated back to the appropriate department for services and supplies 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 HIGHLIGHTS The City's Multi-Functional Devices (MFD), consisting of photocopying, scanning, and printing functions, are typically leased rather than purchased by the City based on the cost effectiveness of service contracts versus the cost of purchasing equipment. Although leasing does include built-in financing costs,the heavy usage MFDs sustain on a daily basis coupled with rapidly advancing technology improvements and cost and value reductions in these types of machines,leasing provides the City with cost efficiency and better ongoing quality over the long term. Additionally, the potential for repeated breakdowns, the cost of service contracts and quality issues with older machines makes "lease and replace"a better option than`purchase and retain". With the expiration of the MFD lease agreement in late 2013,the City entered into a new lease in February,2014. As expected,the new machines are more advanced: they are higher quality,with increased functionality and reliability, and notably faster—while lease and service costs have decreased. Conversely, the City's postage machine was purchased rather than leased under a different set of circumstances. Postage machines are primarily mechanical. The technology is simpler than MFDs and therefore less costly. Hence, they are typically stable and reliable pieces of equipment that do not require constant servicing. The postage machine was purchased in June,2009,which included free maintenance service(repair services and postage rate upgrades)for the first year, and a service contract for subsequent years. The original five year maintenance agreement expired at the end of June 2014 but as the machine was operating satisfactorily, the postage machine was retained, and the maintenance agreement renewed on an annual basis for as long as practical. In FY 2016/17, the City was notified there would be a significant increase in the maintenance contract cost for the following year. This cost increase,coupled with the machine's lifespan nearing the endpoint,signaled staff that it was time to replace the postage machine. Staff reviewed and assessed new postage machine options and a replacement machine was purchased in the FY 2017/18 budget. Because this Internal Service Fund chargeback had collected more funding than needed over the years,the chargebacks were reduced from$50,000 down to $40,000 effective with the FY 2018/19 budget. This puts the revenue more in line with anticipated operational costs. Additional revenue is generated from departmental reimbursement for postage usage. Operating expenditures remain consistent with the prior year, which includes contingency funding for the possible postage equipment replacement. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET OFFICE SUPPORT PROGRAM FUND FINANCIALS 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning F)undBalance Unassigned 53,121 75,075 96,171 109,805 109,805 116,963 Total Beginning FtmdBalance $ 53,121 $ 75,075 $ 96,171 $ 109,805 $ 109,805 $ 116,963 Revenues Charge for Services 13,183 10,703 9,868 10,000 8,248 10,000 Internal Service Charges 55,000 55,000 50,000 50,000 50,000 40,000 Total Revenues $ 68,183 $ 65,703 $ 59,868 $ 60,000 $ 58,248 $ 509000 TOTAL SOURCE OF FUNDS $ 121,304 $ 1409777 $ 156,040 $ 169,805 $ 168,053 $ 166,963 USE OF FUNDS Expenditures Operating Expenditures Materials&Supplies 18,632 15,717 14,260 17,000 14,105 18,000 Fees&Charges 25,473 26,434 29,224 36,250 26,134 36,850 Consultants&Contract Services 2,124 2,456 2,751 3,500 2,560 5,000 Total Operating Expenditures $ 46,229 $ 449606 $ 46,235 $ 56,750 $ 42,799 $ 599850 Fixed Assets - - - 15,000 8,291 - Intemal Service Charges - - - - - - Total Expenditures $ 46,229 $ 44,606 $ 46,235 $ 71,750 $ 519090 $ 59,850 Ending Fund Balance Unassigned 75,075 96,171 109,805 98,055 116,963 107,113 Total Ending FundBalance $ 75,075 $ 96,171 $ 109,805 $ 98,055 $ 116,963 $ 107,113 TOTAL USE OF FUNDS $ 121,304 $ 140,777 $ 156,040 $ 169,805 $ 168,053 $ 166,963 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 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET INFORMATION TECHNOLOGY SERVICES INFORMATION TECHNOLOGY SERVICES OVERVIEW Information Technology Services supports the delivery of technology-based services throughout the City's operations. Core services include the maintenance and support for the City's information systems,including all aspects associated with desktop computers, network maintenance and support, infrastructure, and system implementation and upgrade support. Other core duties include maintaining the City's various communication systems, including support for the streaming video technology system, internet, landline and wireless communication systems, including voicemail, email, and the archiving of communication records. The IT Services program supports the upgrade of existing information technology, as well as overseeing new technology initiatives. In meeting the City's information technology needs,the IT Services program strives to continuously enhance and improve IT services,and to maintain and ensure a sound,secure,and reliable IT infrastructure. BUDGET HIGHLIGHTS Notable Budget Changes: • None The IT Services program is funded by service chargebacks for direct and citywide operational support to the City's programs. With ever-evolving technology, IT services, systems, and security costs tend to increase each year. However,FY 2018/19 cost increases are expected to be minimal,therefore Internal Service Fund support fees used to offset operational costs will remain stable at$575,000. Additional revenue comes from the Electric Vehicle Charging Station payments. Staff pursues operational savings wherever possible,and the integration of cloud-based solutions has helped to reduce hardware costs while providing off-site capabilities and enhanced security. Additionally,the consolidation of multiple small servers into larger servers with a virtual server environment has eliminated some duplicate software and maintenance costs. Staff also strives to utilize multi-year service plans when savings are provided to reduce overall costs. However,IT costs have grown with the expansion of the network to Saratoga Prospect Center, free Wi-Fi at Blaney Plaza, website software enhancements, multiple firewall and security systems, and annual security assessments. In this new era of intense cybersecurity protection requirements,ongoing IT Security Audits will identify improvements to be made,which will likely require additional funding needs each year. Additional software costs will also result from Microsoft's new software delivery process of providing cloud based software requiring annual license fees. The City plans to transition to Microsoft 365 in FY 2018/19,therefore citywide operating platform purchases will be an annual cost. The breadth of knowledge and expertise needed for the full scope of IT professional and technical support the City requires necessitates the City contract for on-demand high-level assistance with specialized and emerging technology training,as well as for day-to-day and emergency operations backup as needed. The City maintains an annual contract with an IT consultant for this purpose. The IT consultant can draw upon multiple staff in their firm who have specialized training with advanced skills to assist in the implementation of new or high-level technology projects. The consultants also support and train the City's IT staff on new technology as needed. While there are variations in support and license fees from year to year,the overall operating budget remains fairly steady. Increases are primarily limited to staffing costs stemming from cost-of-living increases and salary survey adjustments. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET INFORMATION TECHNOLOGY SERVICES FUND FINANCIALS 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 262,069 260,322 274,223 308,074 308,074 364,265 Total Beginning Fund Balance $ 262,069 $ 260,322 $ 274,223 $ 308,074 $ 308,074 $ 364,265 Revenues Other Sources 5,803 6,485 6,058 5,600 13,530 10,000 Internal Service Charges 425,000 475,000 525,000 575,000 575,000 575,000 Total Revenues $ 430,803 $ 481,485 $ 531,058 $ 580,600 $ 588,530 $ 585,000 TOTAL SOURCE OF FUNDS $ 692,872 $ 7419807 $ 805,281 $ 888,674 $ 896,604 $ 949,265 USE OF FUNDS Expenditures Salaries and Benefits 248,221 244,289 259,198 309,283 290,988 323,006 Operating Fxpenditures Materials&Supplies 11,141 4,271 4,506 11,450 3,558 16,450 Fees&Charges 15,376 21,891 27,287 29,015 26,579 28,775 Consultants&Contract Services 115,672 130,605 140,135 192,785 141,595 196,330 Meetings,Events&Training 2,625 3,196 2,416 4,000 2,303 5,000 Total Operating Expenditures 144,813 159,962 174,344 237,250 174,034 246,555 Fixed Assets - - - - - - Internal Service Charges 39,516 63,332 63,666 67,317 67,317 68,240 Total Eipenditures $ 432,550 $ 467,583 $ 497,208 $ 6139850 $ 532,339 $ 637,801 Ending Fund Balance Unassigned 260,322 274,223 308,074 274,823 364,265 311,464 Total Ending FundBalance $ 260,322 $ 274,223 $ 308,074 $ 274,823 $ 364,265 $ 311,464 TOTAL USE OF FUNDS $ 692,872 $ 741,807 $ 805,281 $ 888,674 $ 896,604 $ 9499265 FY 2018/19 WORKPLAN PRIORITIES Network Security Assessment-Network security assessments are conducted on a quarterly basis in an effort to ensure the security of the City's data systems, and to conform to the Payment Card Industry(PCI) Data Security Standards (DSS)and pass compliance audits. The identification of potential security vulnerabilities on City's data network are addressed on an ongoing basis. TRAKiT Upgrades-The City began using TRAKiT software in 2007. This project will update the land management and community development modules to provide new features that increase functionality,promote transparency,and maintain up-to-date land information. 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 operational accessibility and communication efficiency. 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET INFORMATION TECHNOLOGY SERVICES KEY SERVICES • Maintain and support the City's information software systems, including the financial system, development permitting system, class and rental registration system, Laserfiche document management system, agenda management system, video streaming,and other City systems • Maintain,support,repair,and upgrade the City's servers • Maintain and support the City's video streaming,internet,voicemail,wireless and telecommunication systems • Maintain, support, repair, upgrade, assist, and educate staff on system usage, desktop computers, printers, and technology accessories • Provide ongoing network maintenance,security,and support • Maintain and enhance the City's website and AM radio station to effectively provide public access to City information • Oversee technology upgrades as well as lead new information technology initiatives INFORMATION TECHNOLOGY SERVICES STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Administrative Services Director 0.10 0.10 0.10 0.10 0.10 Finance Manager - - - - - Accountant 1/II Accounting Technician/Lead Human Resources Manager Human Re s o urc e s Technician - - - - - Information Technology Administrator 1.00 1.00 1.00 1.00 1.00 Information Technology Technician 1.00 1.00 1.00 1.00 1.00 TOTAL FTE's 2.10 2.10 2.10 2.10 2.10 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded IT Technician TOTAL ANNUAL HOURS CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET INFORMATION TECHNOLOGY SERVICES PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 - Ac tuals Ac tuals Ac tuals Estimated Budget 1. Support the delivery of technology services to citizens, residents,businesses,other governmental agencies,and internal City departments. a. Percent of time online services are available to the 99% 98% 99% 99% 99% public through the City's website and resource links: b. Percent of time network remains available during 99% 99% 99% 99% 99% normal business hours: c. Percent of time TT responds/resolves support 99% 99% 99% 99% 99% requests within one working day. d. Percent of time TT responds to technology system 100% 100% 100% 100% 100% emergency events: 2. Provide technology solution oversight and project management support to improve citywide functions. a. Number of system upgrades or modifications for 6 8 5 8 7 which TT staff provided project management support: b. Number of new technology sytems or equipment for 7 6 6 10 5 which oversight and support was provided by TT staff: 3. Protect the City's technology assets from unauthorized use. a. Staff has current knowledge of cybersecurity alerts Yes Yes Yes Yes Yes and product vulnerabilities: b. Number of times per year firewall tested for security: Not 2 2 2 2 Available c. Security standards meet PCI Compliance Requirements: Yes Yes Yes In In Progress Progress ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 A ' Ac tuals Ac tuals Ac tuals Estimate Budget 1. Number of system users supported: 109 106 121 119 119 2. Number of TT software applications monitored and 36 37 41 43 43 maintained: 3. Number of network servers maintained: 24 24 25 29 29 4. Number of desktop systems maintained: 60 59 60 61 61 5. Number of laptop/tablet systems maintained: 20 38 31 41 41 6. Number of network copiers,printers,plotters,scanners, 21 20 20 22 22 fax machines,and postage machines maintained: 7. Number of landlines serviced and maintained: 75 76 79 81 76 8. Number of cell phones serviced and maintained: 22 23 26 27 27 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET 1 1 INFORMATION TECHNOLOGY • REPLACEMENT IT EQUIPMENT REPLACEMENT OVERVIEW The Information Technology Equipment Replacement Fund program provides for a consistent level of funding for the replacement of desktop computers and monitors, servers, laptops,printers, and various other technology equipment on an ongoing basis. Staff maintains a replacement schedule for City IT equipment, with estimated life plans and calculated replacement costs to determine replacement needs each year. The schedule is used to calculate the annual funding contribution requirement to smooth operating expenses over the years,as well as provide a more accurate cost of operations on an ongoing basis. Initially,IT equipment is purchased by the requesting department. If the equipment will be replaced on an ongoing basis,the IT Services department integrates the equipment into the replacement schedule list and oversees the purchase and replacement of the item. The department's replacement charges are adjusted to account for the ongoing cost of the equipment. Due to rapid advances in technology,the cost of replacement equipment may vary considerably from the cost of the original equipment, or the equipment becomes obsolete and replaced with different technology. In recent history however, IT equipment costs have remained fairly consistent in price, while the technology continues to advance. As a result,ongoing replacement costs are beginning to stabilize. BUDGET HIGHLIGHTS Beginning in FY 2015/16, a more comprehensive replacement funding strategy integrated departmental software systems into the replacement schedules rather than asking for funding sporadically through the Capital Improvement Plan process. Per Council's direction, the IT Replacement Fund is to incorporate all technology systems into the replacement program along with all IT infrastructure and fixed assets. This comprehensive accounting provides a level of detail to more accurately account for all IT operational costs,and therefore to accumulate replacement funding during the lifetime of the asset while also creating a master IT replacement plan. . As a result of this change, the service chargeback increased significantly—from $65,000 per year to $125,000 per year. With additional hardware, software, and rising costs over the last two years,the service chargeback is now at $150,000. Allocation charges to each program are calculated by tracking citywide equipment costs and lifespan,and a weighted average cost determines how much is to be 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 2018/19. Program expenditures will vary year by year as software and equipment lifespan cycles vary,and are independent of the annual chargeback amount. Additionally, funding requirements adjust over the years as replacement needs are revised,projected costs are more firmly determined, or equipment functionality extends past the initial lifespan projection. Planned replacements for the budget year total $191,250 and include: $17,500 for desktop and $3,000 for laptop replacements, $49,600 for network server replacements, $750 for a printer, $13,000 for network equipment, $7,000 for UPS battery backups,and$100,400 for MS Office Suite,Adobe software,and a TRAKiT software upgrade. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET INFORMATION TECHNOLOGY EQUIPMENT REPLACEMENT FUND FINANCIALS 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 152,788 194,101 274,339 315,299 315,299 423,730 Total Beginning Fund Balance $ 152,788 $ 194,101 $ 274,339 $ 315,299 $ 315,299 $ 423,730 Revenues ISF Charges 65,000 125,000 125,000 150,000 150,000 150,000 Total Revenues $ 65,000 $ 125,000 $ 125,000 $ 150,000 $ 1509000 $ 150,000 Operating Transfers Transfer hi from General Fund - - - - - - Total Operating Transfers In $ - $ - $ - S - $ - $ - TOTAL SOURCE OF FUNDS $ 217,788 $ 3199101 $ 399,339 $ 465,299 $ 465,299 S 573,730 USE OF FUNDS Expenditures Operating Expenditures Materials&Supplies 23,687 44,762 84,040 89,800 41,569 191,250 Fees&Charges - - - - - - Consultants&Contract Services Meetings,Events&Training - - - - - - Total Operating Expenditures 23,687 44,762 84,040 89,800 41,569 191,250 Fixed Assets - - - - - - Intemal Service Charges - - - - Total Expenditures $ 23,687 $ 44,762 $ 84,040 $ 89,800 $ 41,569 $ 191,250 Operating Transfers Transfer Out to General Fund - - - - - - Transfer Out to CIP Total Operating Transfers $ - $ - $ - $ - $ - $ - Ehding Fund Balance Unassigned 194,101 274,339 315,299 375,499 423,730 382,480 Total Ending Fund Balance $ 194,101 $ 2749339 $ 315,299 $ 3759499 $ 423,730 $ 382,480 TOTAL USE OF FUNDS $ 217,788 $ 3199101 $ 399,339 $ 4659299 $ 465,299 $ 573,730 KEY SERVICES • Accumulate and provide annual funding for technology asset replacement • Assess IT equipment for proper replacement timing • Identify and procure best solution equipment CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET INFORMATION TECHNOLOGY EQUIPMENT REPLACEMENT IT EQUIPMENT REPLACEMENT SCHEDULE SCHEDULED IT EQUIPMENT FY 2018/19 Standard Desktops S 10,000 Graphics Desktops 7,500 Laptops 3,000 Small Printer 750 Mid-Size Server 20,000 Large Server 20,000 Virtual Server 9,600 Network Switches 9,000 Firewalls 4,000 Desktop Batteries 2,000 Server Batteries 5,000 Productivity Software(MS Office Suite,Adobe) 26,300 TRAKiT Software Upgrade 75,000 TOTAL IT EQUIPMENT REPLACEMENT BUDGET $ 191,250 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET INFORMATION TECHNOLOGY EQUIPMENT REPLACEMENT \�y 0i S AR Toc � y 1956 F0?, CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING AND CAPITAL BUDGET COMMUNITYDEVELOPMENT DEPARTMENT DEPARTMENT OVERVIEW The Community Development Department guides the physical growth of the City and preserves the community's quality of life by administrating zoning regulations and providing building and inspection services,code enforcement, arborist services, and ongoing advanced planning activities that maintain the City's General Plan. The Department also supports the City's business environment through participation and funding of economic development activities. The Saratoga community provides input to the Department through the Planning Commission and Heritage Preservation Commission, and by citizen involvement in Commission and Council reviews of the General Plan and various specific plans. The Department's staff supports community participation through development review services,commission meeting preparation and support,and public hearings. DEPARTMENT OBJECTIVES The Community Development Department directly supports two of the Council's Strategic Goals through implementation of the department's objectives, as listed below. Performance measures provide feedback on the Department's progress towards meeting these objectives. Council Strategic Goal City Leadership: Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high quality leadership for the community. Department Objectives • Maintain staff s responsiveness and accountability to the community • Enhance transparency in departmental processes • Maintain community partnerships through support and engagement with business,residents,and all types of community groups • Encourage civic engagement and participation through the Planning Commission and Heritage Preservation Commission processes Council Strategic Goal Community Heritage:Honor Saratoga's heritage by preserving significant historic assets. Department Objectives • Administer and enforce development policies and standards to maintain a high quality of life for residents and the business community • Protect Saratoga's natural beauty CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET COMMUNITY DEVELOPMENT DEPARTMENT BUDGET HIGHLIGHTS Development activity for remodeling and improvements of Saratoga property owners has tracked with broader Statewide and Bay Area trends. The above average development activity is not expected to continue indefinitely and over the past 3 years,this revenue category has begun to taper off. The decrease in development activity is reflected in the current year's slightly lower estimated total departmental revenue. Staffing levels in the Community Development Department is reduced from 12.50 to 12.00 FTEs as the Sr.Building Inspector/Plan Checker will fully transition over to Public Works as an Associate Engineer in FY 2018/19. With the overarching goal of providing the most efficient use of personnel to deliver quality service to the community,the Plan Check Engineer position will be reclassified to a Building Official who will have plan check and inspection responsibilities as well as oversee the Building Inspectors,Permit Technician,and Office Specialist. To optimize the operating budget and to ensure long-term sustainability of the department, the vacant Senior Planner position was replaced with a Planner I, and funding for a part time GIS technician was replaced with funding for a consultant to provide as needed GIS support service related to the permit software upgrade and GIS implementation. A temporary Project Manager will continue to be funded to assist with the Heritage Preservation Commission's(HPQ approved workplan and the review of development applications that cannot be completed by regular planning staff. As in past years, contingency funding is also budgeted for contract inspectors to provide coverage for unanticipated increase in building and code compliance inspection requests or time off requests. Community Development utilizes TRAKiT, an integrated suite of software modules for tracking and managing Parcels,Planning applications,Building Permits, Code Enforcement, and Business Licenses. The current version of the software in use is over 10 years old and funds are budgeted in FY 2018/19 to upgrade the software to TRAKiT 9. Upgrading to the latest version of the software would support online permitting, provide public access to data, and integrate GIS with parcel and permit data. The department will continue training efforts for all new staff to rebuild the department knowledge base,skillsets and work capacity,implement administrative and process improvements,and upgrade existing permitting software. These efforts will increase overall efficiency of the department and enhance customer service for City residents and businesses. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET COMMUNITY DEVELOPMENT DEPARTMENT GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits 1,227,554 1,305,524 1,203,790 1,154,850 1,577,069 1,251,000 Charge for Services 864,804 949,373 774,321 814,000 763,072 743,180 Other Sources 2,755 3,634 2,514 4,500 2,868 1,100 TOTAL REVENUES $ 2,095,113 $ 2,258,530 $ 1,980,624 $ 1,973,350 $ 2,343,010 $ 1,995,280 EXPENDITURES Salaries and Benefits 1,523,194 1,624,144 1,804,304 1,896,208 1,704,434 1,971,618 Operating Expenditures Materials&Supplies 20,765 16,917 20,602 20,350 14,072 21,250 Fees&Charges 20,940 23,409 22,107 27,897 30,996 43,720 Consultant&Contracts 140,169 153,107 78,738 90,125 69,791 108,600 Meetings,Events,Training 8,683 7,038 5,954 10,550 10,219 15,100 Total Operating Expenditure 190,557 200,471 127,401 148,922 125,079 188,670 Fixed Assets - - - - - - Intemal Service Charges 372,929 368,244 392,356 417,012 417,012 364,304 TOTAL EXPENDITURES $ 2,086,680 $ 2,192,859 $ 2,324,061 $ 2,462,142 $ 2,246,525 $ 2,524,592 DEPARTMENTAL EXPENDITURES - BY PROGRAM 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND Development Services 909,462 933,024 879,621 851,439 753,588 967,316 Advanced Planning 113,311 119,583 146,160 152,554 114,039 161,219 Code Compliance 127,653 161,859 195,952 240,974 209,808 289,441 Building Inspection Services 936,255 978,393 1,102,328 1,217,175 1,169,090 1,106,616 TOTAL GENERAL FUND $ 2,086,680 $ 2,192,859 $ 2,324,061 $ 2,462,142 $ 2,246,525 $ 2,524,592 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 COMMUNITY DEVELOPMENT DEPARTMENT DEPARTMENTAL ORGANIZATION CHART Community Development Director 1.0 FTE Administrative Assistant 1.0 FTE Sr.Planner Code Compliance Sr.Arborist Building 1.0 FTE Officer 1.0 FTE Official 1.0 FTE 1.0 FTE Building Planner la FTE Inspector 1.0 FTE Planner Building 1.0 FTE Inspector 1.0 FTE Permit Technician 1.0 FTE Office Specialist 1.0 FTE CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET COMMUNITY DEVELOPMENT DEPARTMENT COMMUNITY DEVELOPMENT DEPARTMENT STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Community Development Director 1.00 1.00 1.00 1.00 1.00 Senior Planner 1.00 1.00 2.00 2.00 1.00 Planner I/Il 2.00 2.00 1.00 1.00 2.00 Senior Arborist 1.00 1.00 1.00 1.00 1.00 Plan Check Engineer 1.00 1.00 1.00 1.00 - Sr.Building Inspector/Plan Checker 1.00 1.00 1.00 - Associate Engineer - - - 0.50 Building Official - - - - 1.00 Building Inspector 2.00 2.00 2.00 2.00 2.00 Permit Technician 1.00 1.00 1.00 1.00 F 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Office Specialist III 1.00 1.00 1.00 1.00 1.00 Code Compliance Officer - - 1.00 1.00 1.00 TOTAL FTE's 12.00 12.00 13.00 12.50 12.00 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Planning Intern 320 480 320 - 348 GIS/Graphics Tech - - - 499 - Office Specialist III 800 940 - - - Project Manager - - 1,335 960 960 TOTAL ANNUAL HOURS 1,120 1,420 1,655 1,459 19308 COMMUNITY DEVELOPMENT STAFF - BY PROGRAM City Staff by Program 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Funded Development Services 4.60 4.60 4.35 3.55 4.15 Advanced Planning 0.70 0.70 0.70 0.75 0.80 Code Compliance 0.75 0.75 1.35 1.45 1.55 Building&Inspections 5.95 5.95 6.60 6.75 5.50 TOTALS 12.00 12.00 13.00 12.50 12.00 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET COMMUNITY DEVELOPMENT DEPARTMENT \�y 0� A Rq roG c, y 1956 ��ClFpRN�P CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET DEVELOPMENT DEVELOPMENT SERVICES OVERVIEW Applicants for building and other development permits are required to comply with City codes,plans,and policies,in order to obtain the Planning Department's approval of their projects. To help facilitate development projects, Development Services assists applicants by reviewing, analyzing, and processing their applications. The process involves an assessment of a project's consistency and compliance with the City's Municipal Code,General Plan,and regulations, followed by plan checks and inspections. Depending on the project, more extensive historical, arboricultural,environmental,or geological reviews and assessments may also be required. BUDGET HIGHLIGHTS Notable Budget Changes • Funding for a part time GIS technician was replaced with funding for a consultant to provide as needed GIS support service related to the permit software upgrade and GIS implementation. • The vacant Senior Planner position was filled by a Planner 1. • Planning staff allocations were increased Design review applications for new homes and large remodels,which make up the bulk of development activity began slowing down in FY 2015/16 and Development Services revenues has gradually tapered off. With this slight development application slowdown, major assignments for the program include: completion of the comprehensive updates for the Land Use,Circulation,and Open Space Element of the General Plan,implementation of the Saratoga Village Policy & Design Guidelines update; creating outreach and educational materials; implementation of the Historical Preservation Committee's programs, and the Annual Code Update. The City's economic development programs will also continue to be administered through Development Services in FY 2018/19, assisting with Chamber of Commerce efforts, Destination Saratoga, and support for the Planning Commission and Heritage Preservation Commission. For training and workplan purposes, staffing was reallocated to add.70 FTE of Planner I/11 staff. Appropriations for temporary planning staff continue to be funded to assist with meeting anticipated development activity and the department's workplan. Other operational expenditures reflect an increase for the added GIS consultant and license costs, and for training costs, reflective of new staff. Of additional note, the Community Development lobby was allocated Capital Improvement Project funding to renovate the Permit Center lobby in order to provide a better customer experience. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET DEVELOPMENT SERVICES GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits 53,093 48,108 35,409 41,700 39,530 39,400 Charge for Services 477,962 435,508 440,895 439,000 442,757 368,180 Other Sources 2,255 1,534 1,657 1,500 1,258 500 TOTAL REVENUES $ 533,310 $ 485,150 $ 477,961 $ 482,200 $ 483,546 $ 408,080 EXPENDITURES Salaries and Benefits 646,717 646,929 680,917 608,630 535,043 732,250 Operating Expenditures Materials&Supplies 13,256 12,184 9,693 11,100 8,062 12,300 Fees&Charges 5,811 8,982 7,251 11,667 10,655 12,490 Consultant&Contract Services 78,448 99,687 1,268 26,800 4,623 42,300 Meetings,Events&Training 5,876 3,948 4,622 5,750 7,712 9,800 Total Operating Expenditures 103,391 124,801 22,834 55,317 31,053 76,890 Fixed Assets - - - - - - Internal Service Charges 159,353 161,294 175,870 187,492 187,492 158,176 TOTAL EXPENDITURES $ 909,462 $ 933,024 $ 879,621 $ 851,439 $ 753,588 $ 967,316 FY 2018/19 WORKPLAN PRIORITIES Annual Code Updates - Each year staff identifies sections of the City Code that need updating to remove inconsistencies, code which is difficult to interpret, or code requiring revisions to reflect changes in state law(e.g. zoning definitions). Heritage Preservation Commission-As liaison to the Heritage Preservation Commission,staff will continue to assist the HPC to implement their programs including the Heritage Resource Inventory, the Heritage Tree Inventory, and the Plaques and Point of Interest Markers program. Community Development Lobby Remodel Project-Design overview for the construction of improvements to the Permit Center lobby area. TRAKiT Permit System-Implement the TRAKiT 9 software upgrade and train staff on new features and functions in the LandTRAK and ProjectTRAK modules including online permitting and integration with the GIS system. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 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 DEVELOPMENT SERVICES STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Community Development Director 0.50 0.50 0.50 0.40 0.40 Senior Planner 0.60 0.60 1.20 0.70 0.60 Planner I/II 1.60 1.60 0.85 0.80 1.50 Senior Arborist 0.90 0.90 0.90 0.80 0.80 Plan Check Engineer - - - - - Building Official Sr.Building Inspector/Plan Checker Associate Engineer Building Inspector - - - - - Permit Technician 0.10 0.10 0.05 0.05 0.05 Administrative Assistant 0.90 0.90 0.85 0.80 0.80 Office Specialist M - - - - - Code Compliance Officer - - - - - TOTAL FTE's 4.60 4.60 4.35 3.55 4.15 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Planning Intern 320 480 160 - 348 GIS/Graphics Tech - - - 499 499 Office Specialist III 800 940 - - - Project Manager - - 960 960 960 TOTAL ANNUAL HOURS 1,120 1,420 1,120 1,459 1,807 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET DEVELOPMENT SERVICES PERFORMANCE OBJECTIVES & MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 - ' Actuals Actuals Actuals Estimated Budget 1. Facilitate the development of land and structure consistent with City codes,plans,and policies. a. Review planning applications and provide written 100% 100% 100% 100% 100% comments deeming them complete or incomplete, within 30 days: b. Review all zone clearances from the Building Division 98% 99% 100% 99% 100% within 2 weeks: 2. Analyze and process development applications efficiently and effectively. a. Process applications to Planning Commissionwithin 98% 100% 100% 100% 100% an average of 4 weeks of deeming the application complete: b. Percentage of applications continued at the request 109/0 09/0 0% 1% 0% of the Planning Commission: c. Percentage of applications appealed to the Planning 2% 1% 3% 1% 1% Commission or City Council: d. Percentage of applications upheld by the City Council• 100% 509/0 0% 100% 100% 3. Enhance community awareness of land use projects. a. Percent of notices sent within 10 days of Planning 100% 100% 100% 10096 100% Commission meetings: ACTIVITY & WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Actuals Estimated Budget 1. Number of planning projects processed: 240 200 240 210 200 2. Number of tree removal permits processed: 360 309 403 370 400 3. Number of Arborist plan reviews: 70 82 80 65 70 4. Number of Planning Commission Hearings: 20 18 18 15 18 5. Number of Plannning Commission Study Sessions: 10 10 10 6 10 6. Number of public input meetings for citywide programs: 2 4 4 3 3 7. Number of complex projects (General Plan, 10 10 10 10 10 amendments/rezonings,planned developments, environmental review): CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ADVANCED ADVANCED PLANNING OVERVIEW The Advanced Planning program focus is on guiding the physical development of the City by developing and updating the City's standards,regulations, Specific Plans,and General Plan. The City's General Plan is an adopted statement of policy for the physical development of the community. As such, it includes the following elements: Land Use, Housing, Circulation, Safety, Noise, Open Space, and Conservation. The City also establishes specific plans to provide additional guidance for future land use 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 HIGHLIGHTS Notable Budget Changes: • None Advanced Planning program revenue provides funding for a combination of in-house staff work and consultant services. Revenues are loosely tied to program expenditures through current year staff activity in the operating budget, and longer term consultant project work through a capital project. A more concrete funding methodology was implemented in FY 2014/15 to ensure Advanced Planning Fee revenue remains dedicated for this purpose by redirecting$100,000 of the General Plan Update Fees to the General Plan capital project. The capital project is used to fund consultant services for consultant driven work over multiple years, on an as needed basis. The reduced operating revenue is sufficient to cover annual operating expenses. Advanced Planning expenses are 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. Staff workplan activities in FY 2018/19 will be focused on completing the General Plan Update and implementing the Village Specific Plan Policy and Design Guidelines Update. The Planning Commission held study sessions on the General Plan Land Use, Circulation, and Open Space &Conservation Elements in early 2018. The draft document and an EIR will be prepared for public review, adoption and certification in 2019. The Village Plan policy changes were approved by Council in 2017.A parallel effort to update the Village Design Guidelines will begin in mid-2018 to update the format and graphics and to ensure that the document reflects Council approved policy changes. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ADVANCED PLANNING GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits 156,165 191,186 179,999 160,000 256,850 180,000 Charge for Services - - - - - - Other Sources - - - - - - TOTAL REVENUES $ 156,165 $ 191,186 $ 179,999 $ 160,000 $ 256,850 $ 180,000 EXPENDITURES Salaries and Benefits 93,089 98,492 124,439 126,448 91,222 138,670 Operating Expenditures Materials&Supplies - - 39 1,250 - 1,250 Fees&Charges 1,439 1,314 526 1,950 411 1,950 Consultant&Contract Services - - - 500 - 500 Meetings,Events&Training - Total Operating Expenditures 1,439 1,314 565 3,700 411 3,700 Fixed Assets - - - - - - hitemal Service Charges 18,783 19,777 21,156 22,406 22,406 18,849 TOTAL EXPENDITURES $ 113,311 $ 119,583 $ 146,160 $ 152,554 $ 114,039 $ 161,219 FY 2018/19 WORKPLAN PRIORITIES General Plan Update - Complete the General Plan Update of the Land Use, Circulation, and Open Space/Conservation Elements. Village Policy Update-Implement changes to the Village Parking and Circulation Policy and update the City Codes per Council's direction. Village Design Guidelines Update-The Village Design Guidelines will be updated with new graphic materials to support the guideline text and polices. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ADVANCED PLANNING KEY SERVICES • Coordinate preparation of anticipated General Plan Element Updates • Maintain and apply General Plan and Specific Plan updates to development processes • Develop administrative policies,plans,and ordinances in coordination with Advance Planning updates • Prepare Department of Housing and Community Development annual report on General Plan ADVANCED PLANNING STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Community Development Director 0.30 0.30 0.20 0.25 0.20 Senior Planner 0.30 0.30 0.40 0.30 0.20 Planner I/II 0.10 0.10 0.05 0.10 0.30 Senior Arborist - - - - - Plan Check Engineer Building Official Sr.Building Inspector/Plan Checker Associate Engineer Building Inspector Permit Technician - - - Administrative Assistant 0.05 0.10 0.10 Office Specialist III - - - Code Compliance Officer - - - - - TOTAL FTE's 0.70 0.70 0.70 0.75 0.80 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Planning Intern 160 GIS/Graphics Tech - Office Specialist III - Project Manager 375 TOTAL ANNUAL HOURS 535 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ADVANCED PLANNING PERFORMANCE OBJECTIVES AND MEASURES 201VIS 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. General Plan complies with State of California requirements. a. Five of seven General Plan were updated within last Yes Yes Yes Yes Yes eight years: b. Annual review of Housing Element submitted to State Yes Yes Yes Yes Yes by deadline: 2. General Plan elements are updated within the last eight years in order to administer and enforce development a. Housing Element: Yes Yes Yes Yes Yes b. Land Use Element: No No No No Yes c. Circulation and Transportation Element: Yes Yes Yes No Yes d. Conservation Element: No No No No Yes e. Open Space Element: No No No No Yes f. Noise Element: Yes Yes Yes Yes Yes g. Safety Element: Yes Yes Yes Yes Yes ACTIVITY AND WORKLOAD HIGHLIGHTS 20IV15 2015/16 2016/17 2017/18 2018/19 ■ Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of ordinances completed(multiple section 6 4 4 5 4 updates): 2. General Plan Elements updated: 1 0 0 0 3 3. Number of General Plan amendments requested: 1 0 0 0 0 4. Annexation applications in process: 1 0 0 0 0 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CODE COMPLIANCE CODE COMPLIANCE OVERVIEW The City's Code Compliance program supports community health, safety, and welfare through zoning, planning, business license, and other regulations as reflected in the City Code. Compliance is achieved through education, enforcement of laws and codes, and through maintaining the safety and livability of neighborhoods for the citizens and business community of Saratoga. Program staff works closely with other City departments and various public agencies,including the Santa Clara County Sheriff's Office,which handles law enforcement duties for the City. BUDGET HIGHLIGHTS Notable Budget Changes: • None Code Compliance revenues are mostly limited to fees from the administration of various special activity permits,such as Special Event and Noise Exception Permits, Massage Permits, and Solicitor Permits. Only rarely does the City issue administrative citations to obtain compliance with City Code. Code Compliance expenditures are not fully covered by fees or permit revenues. For those code compliance cases which are not resolved through staff efforts or 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 if an appeal is requested for a code enforcement action issued by the City. The attorney is an impartial judge and does not have any other connection or working relationship with the City. In FY 2017/18,the City utilized the Hearing Officer for a dangerous dog case. Funding for the Hearing Officer and supplemental code compliance services is maintained at the same level in FY 2018/19 in case the need arises for these types of Code Enforcement efforts. The Code Compliance program, staffed by one full time code compliance officer, is managed and supervised by the Community Development Director. Additional code compliance assistance comes from the City Arborist,Building staff and Planning staff. The cost of staff time,comprised of salaries,benefits,and internal services charges,make up the majority of this program's expenditures. Only a minimal amount of funding is needed for materials,supplies,and postage. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CODE COMPLIANCE GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits 10,225 7,775 9,575 6,300 11,275 10,800 Charge for Services - - - - - - Other Sources 500 2,100 857 3,000 1,610 600 TOTAL REVENUES $ 10,725 $ 9,875 $ 10,432 $ 9,300 $ 12,885 $ 11,400 EXPENDITURES Salaries and Benefits 93,944 103,753 138,545 186,954 170,835 233,009 Operating Expenditures Materials&Supplies 41 641 2,282 1,600 506 1,100 Fees&Charges 205 159 809 1,080 861 1,000 Consultant&Contract Services 6,943 31,623 27,937 20,000 7,065 24,000 Meetings,Events&Training - 553 800 - 1,000 Total Operating Expenditures 7,188 32,422 31,580 23,480 8,432 27,100 Fixed Assets - - - - - - Internal Service Charges 26,520 25,684 25,826 30,540 30,540 29,332 TOTAL EXPENDITURES $ 127,653 $ 161,859 $ 195,952 $ 240,974 $ 209,808 $ 289,441 FY 2018/19 WORKPLAN PRIORITIES Abatement Priorities-Staff will continue to focus its efforts on the Temporary Off-Site(Real Estate) Sign program launched in January 2018 and prioritize responses to code compliance cases based on the Council's adopted priorities and procedures. Program Priorities - Development of new code compliance procedures to streamline work process and improve workflow between Building,Planning and Code Compliance divisions. TRAKiT Permit System-Implement the TRAKiT 9 software upgrade and train staff on new features and functions in the CodeTRAK module including online permitting and integration with the GIS system. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CODE COMPLIANCE KEY SERVICES • Issue Special Event and Noise Exception Permits • Administer masseuse and solicitor permit programs • Enforce City regulations while educating and increasing the awareness of residents, businesses, and property owners about the City's regulations • Receive and maintain status on all violation complaints;respond to,investigate,and abate legitimate complaints • Resolve complex code and zoning violations;and administer citation appeals CODE COMPLIANCE STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Community Development Director 0.05 0.05 0.05 0.10 0.20 Senior Planner - - 0.05 - - Planner I/II 0.10 0.10 - - Senior Arborist 0.05 0.05 0.05 0.05 Plan Check Engineer - - - - Building Official - - Sr.Building Inspector/Plan Checker 0.25 0.25 Associate Engineer - - - - - Building Inspector 0.20 0.20 0.10 0.10 0.10 Permit Technician - - 0.05 - - Administrative Assistant 0.10 0.10 0.10 0.10 0.10 Office Specialist III - - - 0.10 0.10 Code Compliance Officer - 1.00 1.00 1.00 TOTAL FTE's 0.75 0.75 1.35 1AS 1.55 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Planning Intern GIS/Graphics Tech Office Specialist III Project Manager TOTAL ANNUAL HOURS CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CODE COMPLIANCE PERFORMANCE OBJECTIVES AND MEASURES 201VIS 2015/16 2016/17 2017/18 2018/19 _ Actuals Actuals Actuals Estimated Budget 1. Ensure code compliance staff is responsive and accountable to the community. a. Percentage of complaints receiving a response within 70% 90% 73% 90% 90% 48 hours of receipt: b. Average open to close cycle time for formal Not Not 4 weeks 4 weeks 4 weeks complaints: Available Available c. Percent of violations resolved through voluntary Not Not 90% 90% 90% compliance: Available Available 2. Ensure compliance with City regulations for permitted activities. a. Annual number of Solicitor Permits issued: 20 11 6 10 10 b. Annual number of Noise Exemption permits issued: 40 35 43 50 50 ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Actuals Estimated Budget 1. Annual number of new code enforcement cases: 70 100 180 180 180 2. Total number of Administrative Citations: 5 0 0 2 4 3. Cases requiring City Attorney review: 5 2 4 3 3 4. Annual number of Code Enforcement cases investigated Not Not 523 140 140 or mitigated/closed: Available Available CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET BUILDING ' SERVICES BUILDING & INSPECTION OVERVIEW The Building&Inspection Services program is a regulatory function that protects the community's safety,health,and property rights by ensuring minimum building and zoning standards are met. The City`s development ordinances and standards regulate the design,construction,quality of materials,use and occupancy of buildings,as well as the location and maintenance of all buildings within the City of Saratoga. Staff assists applicants with information concerning building regulations, disability access regulations, and other State and local ordinances, and provides plan check services in compliance with Uniform Building Codes. Staff also maintains permit tracking and plan check systems, inspects commercial and residential buildings under construction, and reviews grading plans and performs grading inspections for construction projects with significant earthwork activity. BUDGET HIGHLIGHTS Notable Budget Changes: • Staff will decrease with the transition of the remaining .50 FTE Sr. Building Inspector/Plan Checker to Associate Engineer in Public Works Engineering. • Credit card expenses will increase with the rise in activity. Building & Inspection Services revenue comes from building permits and plan checking fees. Fees are calculated based on the construction valuation of the project. Budgeted amounts are derived from an expected level of activity based on recent activity,with adjustments for additional funding if large projects are in process. FY 2017/18 building revenues exceeded budgeted amounts due to an increase in construction. Project valuations and building permit activities are expected to continue at this level,but are budgeted lower for FY 2018/19 as a conservative measure due to the potential for quick volatility in the construction industry. Staffing in the Building Division reflects the .final .50 FTE transition of the Sr. Building Inspector/Plan Checker position to a full time Engineer in Public Works,and the reclassification of the vacant Plan Check Engineer position to a Building Official position to provide oversight of the building division. The Building Official will provide building inspection and plan checking duties as needed,with additional budget for contract services as necessary. The remainder of the expenditure budget reflects standard operating expenses,however a$15,000 increase in credit card fees was budgeted due to the expected increase in usage after the elimination of the credit card usage fee in FY 2017/18. The Department is continuously looking for areas to improve and deliver excellent service to the public. The ability to expedite plan check response time and issue over-the-counter permits would improve customer service; therefore the department will focus on utilizing technologies,standardizing processes,training staff and attaining certifications to achieve this goal. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET BUILDING & INSPECTION SERVICES GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes Intergovernmental Revenues - - - - - - Fees,Licenses and Permits 1,008,071 1,058,454 978,807 946,850 1,269,415 1,020,800 Charge for Services 386,842 513,865 333,425 375,000 320,315 375,000 Other Sources - - - - - - TOTAL REVENUES $ 1,394,913 $ 1,572,319 $ 1,312,232 $ 1,321,850 $ 1,589,729 $ 1,395,800 EXPENVDr1 URFS Salaries and Benefits 689,443 774,970 860,403 974,176 907,334 867,689 Operating Expenditures Materials&Supplies 7,468 4,092 8,588 6,400 5,503 6,600 Fees&Charges 13,486 12,954 13,521 13,200 19,070 28,280 Consultant&Contract Services 54,777 21,798 49,533 42,825 58,103 41,800 Meetings,Events&Training 2,807 3,090 780 4,000 2,507 4,300 Total Operating Expenditures 78,539 41,934 72,422 66,425 85,182 80,980 Fixed Assets - - - - - - hitemal Service Charges 168,273 161,489 169,503 176,574 176,574 157,947 TOTAL EXPENDITURES $ 936,255 $ 978,393 $ 1,102,328 $ 1,217,175 $ 1,169,090 $ 1,106,616 FY 2018/19 WORKPLAN PRIORITIES TRAKiT Permit System-Implement the TRAKiT 9 software upgrade and train staff on new features and functions in the building permit and business license modules including online permitting and integration with the GIS system. Plan Check Response Times- Closely monitor the time it takes to provide the first round of plan comments on a building permit application.Increase over-the-counter plan check services to reduce response times. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 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 BUILDING & INSPECTION STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Community Development Director 0.15 0.15 0.25 0.25 0.20 Senior Planner 0.10 0.10 0.35 1.00 0.20 Planner I/II 0.20 0.20 0.10 0.10 0.20 Senior Arborist 0.05 0.05 0.10 0.15 0.15 Plan Check Engineer 1.00 1.00 1.00 1.00 - Building Official - - - - 1.00 Sr.Building Inspector/Plan Checker 0.75 0.75 1.00 - - Associate Engineer - - - 0.50 - Building Inspector 1.80 1.80 1.90 1.90 1.90 Permit Technician 0.90 0.90 0.90 0.95 0.95 Administrative Assistant - - - - - Office Specialist 111 1.00 1.00 1.00 0.90 0.90 Code Compliance Officer - - - - - TOTAL FTE's 5.95 5.95 6.60 6.75 5.50 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Planning Intern GIS/Graphics Tech Office Specialist III Project Manager TOTAL ANNUAL HOURS CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET BUILDING & INSPECTION SERVICES PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 - Ac tuals Ac tuals Ac tuals Estimated Budget 1. Maintain staffs responsiveness and accountability to the community. a. Percentage of inspections delivered within 2 business 98% 99% 96% 99% 99% days of request: b. Percentage of initial plan checks completed within 45 98% 99% 92% 97966 99% days of receipt: ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1 Number of Building Division permits issued: 1,700 2,039 1,925 1,800 1,850 2. Number of Over-the-Counter Plan Checks for Remodels: 450 475 460 450 450 3. Number of inspections requested: 3,000 6,711 5,400 5,900 59500 4. Number of building plan checks completed: 350 400 315 400 350 S. Dollar value of construction permitted(in$Millions): $90.0 $96.0 $72.0 $101.0 $95.0 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC WORKs DEPARTMENT DEPARTMENT OVERVIEW The Public Works Department 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. The 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, grounds, bridges, and landscape districts; repairs and maintains the roadway systems, including streets,traffic and pedestrian signals,lighting, and storm drains;provides vehicle maintenance oversight and minor maintenance; and ensures the City's environmental responsibilities are fulfilled, including externally-driven responsibilities under the Clean Water and Solid Waste programs. The Public Works Department also supports the Traffic Safety Commission, the Pedestrian, Equestrian, Bicycle and Trails Advisory Committee, and facilitates community volunteer efforts such as the Village Gardeners and various Scout projects. As part of this oversight, 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 30 separate Landscape and Lighting Assessment Districts. Public Works strives to both fulfill operational functions and fund Capital Projects with the assistance of grant funding when possible,and is therefore diligent in their pursuit of grant funding on an ongoing basis. 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,bridges,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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC WORKS DEPARTMENT 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 • 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 proj ects BUDGET HIGHLIGHTS The Public Works' FY 2018/19 budget holds most operational revenues and expenditures at prior year service levels. Notable revenue increases include encroachment permits that reflect both a change in the City's fee structure and a number of significant utility projects. Increases in expenditures reflect both fee increases and a higher level of services in design and maintenance contracts. The half-time Associate Engineer position shared between CDD and General Engineering will transition entirely into the Public Works Department in FY 2018/19 to focus solely on encroachment permits, Capital Projects and Clean Water Program activities. Staff costs increased substantially due to cost-of-living adjustments, step increases,and promotions. The$20,000 in Fixed Assets reflects the Quarry Park utility building. 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC WORKS DEPARTMENT GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes/Franchise Fees 164,589 167,113 185,670 184,429 172,629 187,000 Intergovemnintl Revenues 212,594 216,105 211,056 142,000 226,202 210,000 Fees,Licenses and Pemrits 122,189 180,687 213,125 200,250 588,057 400,250 Charge for Services 308,605 494,426 296,003 251,715 366,902 270,718 Rental Income 79,791 3,000 2,520 2,000 2,340 2,000 Other Sources 103,375 10,483 28,630 2,500 24,309 2,500 TOTAL REVENUES $ 991,143 $ 1,071,813 $ 937,004 $ 782,894 $ 1,380,440 $ 1,072,468 EXPENDITURES Salaries and Benefits 2,485,634 2,647,113 2,801,838 3,014,830 2,903,482 3,190,011 Operating Expenditures Materials&Supplies 87,668 99,956 102,435 116,900 111,890 119,350 Fees&Charges 509,374 531,908 559,826 572,107 616,142 626,795 Consultants&Contracts 882,646 923,424 1,054,193 1,075,153 1,006,959 1,167,969 Meetings,Events,Training 8,749 3,099 12,028 15,250 13,152 11,840 Total Operating Expenditures 1,488,436 1,558,387 1,728,482 1,779,410 1,748,143 1,925,954 Fixed Assets 35,343 - - 20,000 19,785 20,000 Internal Service Charges 939,125 853,555 859,676 889,099 889,099 883,990 TOTAL EXPENDITURES $ 4,948,538 $ 5,059,055 $ 5,389,996 $ 5,703,339 $ 5,560,509 $ 6,019,955 DEPARTMENTAL EXPENDITURES - BY PROGRAM 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND General Engineering $ 532,614 $ 518,312 $ 584,471 690,957 658,241 $ 783,609 Development Engineering 194,320 227,645 232,146 240,967 217,919 297,804 Environmental Services 615,342 665,655 704,738 788,729 736,801 830,949 Streets&Storm Drains 1,454,269 1,447,110 1,636,003 1,658,802 1,620,130 1,643,830 Parks&Landscape Maint 2,151,993 2,200,334 2,232,638 2,323,884 2,327,418 2,463,763 TOTAL G NERAL FUND $ 4,948,538 $ 5,059,055 $ 5,389,996 5,703,339 5,560,509 $ 6,019,955 INTERNAL SERVICE FUNDS Equipment Maintenance 220,785 224,618 264,042 259,832 215,576 272,422 Equipment Replacement 65,775 201,355 150,722 260,800 245,569 311,800 TOTAL INTERNAL SERVICES $ 286,560 $ 425,973 $ 414,764 520,632 461,144 $ 584,222 SPECIAL REVENUE FUNDS Lands cap e&Lighting Districts 432,671 461,679 511,179 798,960 524,475 774,620 TOTAL SPECIAL REVENUE $ 432,671 $ 461,679 $ 511,179 798,960 524,475 $ 774,620 TOTAL DEPT EXPENDITURES $ 5,667,769 $ 5,946,707 $ 6,315,939 7,022,931 6,546,128 $ 7,378,797 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC WORKS DEPARTMENT DEPARTMENTAL ORGANIZATION CHART Public Works Director 1.0 FTE Sr,Civil Administrative Streets&Fleet Parks& Engineer Analyst Manager Landscape 1.0 FTE .90 FTE 1.0 FTE Manager Office Specialist g 1.0 FTE Associate Administrative Engineer 0 FTE Technic5 FTEian fVo &Fleet Streets&Fleet Parks Parks rker Lead Worker Lead Worker Dead Worker 1.0 FTE 1.0 FTE 1.0 FTE 1.0 FTE Assistant Engineer 1.0 FTE Streets Streets Maint Parks Parks Maint Worker Worker Maint Worker Maint Worker 1.0 FTE 1.0 FTE 1.0 FTE 1.0 FTE Streets Streets Parks Parks Maint Worker Maint Worker — Maint Worker Maint Worker 1.0 FTE 1.0 FTE 1.0 FTE 1.0 FTE Parks Maint Worker 1.0 FTE Note-Temporary Staff is not included in Department's Organization Chart CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC WORKS DEPARTMENT PUBLIC WORKS DEPARTMENT STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Public Works Director 1.00 1.00 1.00 1.00 1.00 Senior Civil Engineer 1.00 1.00 1.00 1.00 1.00 Associate Engineer 1.00 1.00 1.00 1.50 1.00 Assistant Engineer - - - - 1.00 Administrative Analyst I/11 0.90 0.90 0.90 0.90 0.90 Administrative Technician 0.75 0.75 0.75 0.75 0.75 Office Specialist WM 1.00 1.00 1.00 1.00 1.00 Parks Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Parks Maintenance Lead 1.00 2.00 2.00 2.00 2.00 Parks Maintenance Worker I/II M 6.00 5.00 5.00 5.00 5.00 Street Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Street Maintenance Lead 2.00 2.00 2.00 2.00 2.00 Street Maintenance Worker 11Wffl 4.00 4.00 4.00 4.00 4.00 TOTAL FTE's 20.65 20.65 20.65 21.15 21.65 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors 92 92 2,760 1,840 1,840 Maintenance Worker - 999 999 999 999 Engineering Intern 200 200 320 - - GN/Graphics Tech - - - 500 - Administrative Analyst - - - 864 960 TOTAL ANNUAL HOURS 292 1,291 4,079 4,203 3,799 PUBLIC WORKS STAFF - BY PROGRAM City Staff by Program 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Funded General Engineering 2.05 2.05 2.05 2.30 2.70 Development Engineering 0.95 OAS 0.95 1.20 1.45 Environmental Services 0.95 0.95 0.95 0.95 1.05 Streets&Storm Drains 7.60 7.60 7.60 7.60 7.35 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 20.65 20.65 21.15 21.65 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC WORKS DEPARTMENT \�y 0� A Rq to c, y 1956 ��ClFpRN�P CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET GENERAL ENGINEERING GENERAL ENGINEERING OVERVIEW The General Engineering program provides oversight for the City's engineering activities not related to private development. This includes the design, management, and administration of the Capital Improvement Plan to improve the City's public 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 HIGHLIGHTS Notable Budget Changes • Salary and benefit cost increases include transition of the 50%Associate Engineer position shared with the Community Development Department to full-time in Public Works • Funding added for GIS consultant services shared 50%with Community Development Planned General Engineering operations for FY 2018/19 are consistent with the prior year's functions, which focus on providing support for traffic safety and management programs, assessment district engineering reviews, miscellaneous engineering functions, and the Capital Improvement Program's infrastructure maintenance and improvement objectives. Revenues in this program are limited to encroachment permits, and on occasion, reimbursements for engineering staff time spent on grant funded capital projects. General Engineering Encroachment Permit revenues are conservatively budgeted to come in at approximately $350,000 in FY 2018/19 due to a revised fee structure and an increase in large utility projects. No revenues are expected from CIP Project Management sources this fiscal year. While most of General Engineering's budgeted operating expenditures remain the same, an additional $20,000 was added last fiscal year for the City's Traffic Engineer to reflect the increase in requests by residents for more lighted crosswalks and comprehensive traffic calming plans citywide. The Traffic Safety Commission provides a forum for citizens to bring traffic concerns to the City's attention, and in conjunction with increased traffic patrol, 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET GENERAL ENGINEERING GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes hitergovemmentalRevenues - - - - - - Fees,Licenses and Permits 120,470 180,687 212,985 200,250 588,057 400,250 Charge for Services - - - - - - Other Sources 97,600 2,029 26,200 - 20,761 - TOTAL REVENUES $ 218,070 $ 182,716 $ 239,185 $ 200,250 $ 608,819 $ 400,250 EXPENDITURES Salaries and Benefits 369,338 342,848 353,264 453,006 433,639 525,427 Operating Expenditures Materials&Supplies 3,426 2,595 3,213 3,500 4,124 4,000 Fees&Charges 23,138 23,453 23,738 25,715 24,752 25,580 Consultant&Contract Sery 55,986 67,092 119,818 119,675 106,739 135,775 Meetings,Training 342 (672) 2,128 2,750 2,675 3,250 Total Operating Expenditures 82,892 92,467 148,896 151,640 138,290 168,605 Fixed Assets - - - - - - Internal Service Charges 80,384 82,997 82,311 86,311 86,311 89,577 TOTAL EXPENDITURES $ 532,614 $ 518,312 $ 584,471 $ 690,957 $ 658,241 $ 783,609 FY 2018/19 WORKPLAN PRIORITIES Capital Improvement Program Oversight- Provide plans, specifications, estimates and right-of-way documents, coordinate consultants, and administer contracts. FY 2018/19 CIP Project oversight includes Quito Road Bridges construction, Prospect Road Beautification construction, Village Sidewalk Repairs, El Camino Storm Drain upgrades, Big Basin Turnaround construction, Village to Hakone Pedestrian Path design, Hakone Koi Pond Filtration Project construction, Blue Hills Pedestrian Railroad Crossing Improvements, Saratoga-to-the-Sea Trail, and the Annual Pavement Management Program. Traffic Management - Receive resident traffic safety concerns and investigate by means of the city's Traffic Engineer and Traffic Safety Commission as needed. With approximately 1,800 deputy hours focused on traffic control services,the Sheriff has been working with the City's schools and the Traffic Safety Committee to improve traffic management around school activity. Examples of projects to be implemented in FY2018/19 include pedestrian crossing warning lights at Quito and McCoy,Cox Avenue,and Cumberland Drive,Herriman Avenue and Lexington Drive, speed tables along Allendale Avenue, and comprehensive traffic calming measures along Sobey Road. Laserfiche Document Management Project-Staff will continue to prepare the backlog of Public Works documents for scanning services,and when returned,will assess the quality of the files to ensure they are legible,complete,and correctly scanned and indexed. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 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 GENERAL ENGINEERING STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Public Works Director 0.35 0.35 0.35 0.35 0.35 Senior Civil Engineer 0.25 0.25 0.25 0.25 0.75 Associate Engineer 0.75 0.75 0.75 1.00 0.50 Assistant Engineer - - - - 0.40 Administrative Analyst I/II 0.45 0.45 0.45 0.45 0.45 Administrative Technician 0.25 0.25 0.25 0.25 0.25 Office Specialist II/M - - - - - Parks Maintenance Manager Parks Maintenance Lead Parks Maintenance Worker 1/II/M Street Maintenance Manager Street Maintenance Lead Street Maintenance Worker I/II/IU - - TOTAL FTE's 2.05 2.05 2.05 2.30 2.70 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors Maintenance Worker - - - Engineering Intern 200 200 320 GIS/Graphics Tech - - - 500 - Adnvnistrative Analyst - - - 864 960 TOTAL ANNUAL HOURS 200 200 320 1,364 960 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET GENERAL ENGINEERING PERFORMANCE OBJECTIVES & MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Increase roadway safety through effective traffic management practices. a. Respond to traffic safety concerns from residents: 1009/0 100% 100% 100% 100% b. Utilize traffic engineer experts to identify solutions Yes Yes Yes Yes Yes to potential roadway hazards: 2. Maintain safe,well-functioning roadway infrastructure. a. Issue encroachment permits for residential projects 100% 100% 100% 100% 100% within 3 weeks of receipt of application: b. Maintain average pavement condition index at a Yes No No Yes Yes rating of 70 or above: c. Establish best practices roadway maintenance plans, Yes Yes Yes Yes Yes such as for resurfacing,pothole repairs,tree pruning, and weed control ACTIVITY & WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of traffic concerns investigated and completed: 18 18 25 20 20 2. Number of encroachment permits issued: 200 277 225 225 225 3. Number of bids issued: 5 1 5 4 2 4. Number of contracts executed: 10 23 21 20 20 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET DEVELOPMENT DEVELOPMENT ENGINEERING OVERVIEW The Development Engineering Program, in coordination with the City's Community Development Department, provides services for private development projects to ensure they are constructed in accordance with City standards. Development Engineering Services includes reviewing engineering plans and specifications, subdivision maps, and lot line adjustments; issuing certificates of compliance; and, controlling encroachments in the public right-of-way connected to private developments,and ensuring compliance with the City's NPDES permit. This program seeks to fully recover the costs associated with development services. BUDGET HIGHLIGHTS Notable Budget Changes: • Salary and benefit cost increased with the transition of the Associate Engineer to full time in Public Works. The Development Engineering process requires applicants to provide a deposit of funds to be used for City managed engineering work on their development applications. The deposits pay for various types of outsourced engineering services, and for in-house engineering and review work. Budgeted program revenues and expenditures reflect the in-house portion of engineering work. The outsourced portion flows into and out of a deposit account as it is received and disbursed for contract engineering services, and is therefore not recognized in the Development Engineering budget as a City revenue or expense. The strong housing market has brought several small subdivisions to the City in the last few years. FY 20118/19 revenues are based on basic home remodeling, upgrade projects, and small development projects. As the City of Saratoga is mostly built-out, subdivisions are infrequent and unpredictable, and therefore not included in budgeted revenue. FY 2018/19 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET DEVELOPMENT ENGINEERING GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes Intergovernmental Revenues - - Fees,Licenses and Permits 1,719 - 141 - - - Charge for Services 137,936 311,073 112,572 71,600 165,759 77,000 Other Sources - - - - - - TOTAL REVENUES $ 139,654 $ 311,073 $ 112,712 $ 71,600 $ 165,759 $ 77,000 EXPENDITURES Salaries and Benefits 149,277 175,943 176,935 182,735 158,368 230,597 Operating Expenditures Materials&Supplies 499 262 158 300 1,198 750 Fees&Charges 240 288 288 300 312 300 Consultant&Contract Sery 137 2,980 2,125 2,700 3,110 5,200 Meetings,Training - - - - - - Total Operating Expenditures 876 3,530 2,571 3,300 4,619 6,250 Fixed Assets - - - - - - Intemal Service Charges 44,167 48,172 52,640 54,932 54,932 60,957 TOTALEXPENDITURFS $ 194,320 $ 227,645 $ 232,146 $ 240,967 $ 217,919 $ 297,804 FY 2018/19 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 Inspection-Professional Consultant Services will be utilized on an as-needed bases to inspect development project runoff for compliance with the City's NPDES permit.. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 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 DEVELOPMENT ENGINEERING STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Public Works Director 0.10 0.10 0.10 0.10 0.10 Senior Civil Engineer 0.60 0.60 0.60 0.60 _ 0.25 Associate Engineer - - - 0.25 0.25 Assistant Engineer - 0.60 Administrative Analyst I/II - - - - - Administrative Technician 0.25 0.25 0.25 0.25 0.25 Office Specialist II/1Q Parks Maintenance Manager Parks Maintenance Lead Parks Maintenance Worker VWU1 Street Maintenance Manager Street Maintenance Lead Street Maintenance Worker VU/Di - - - - TOTAL FTE's 0.95 0.95 0.95 1.20 1.45 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors 92 92 92 48 48 Maintenance Worker Engineering Intern GIS/Graphics Tech Administrative Analyst TOTAL ANNUAL HOURS 92 92 92 48 48 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET DEVELOPMENT ENGINEERING PERFORMANCE OBJECTIVES AND MEASURES 201V15 2015/16 2016/17 2017/18 2018/19 _ Ac tuals Ac tuals Ac tuals Estimated Budget 1. Maintain a high quality of life through development review by adhering to City standards. a. Percentage of development applications reviewed 90% 92% 90% 95% 90% within 30 days: ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of development applications processed: 35 60 35 40 40 2. Development applications requiring geological review: 12 30 15 20 15 3. Number of subdivision plancheck reviews processed: Not Available 2 0 1 0 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ENVIRONMENTAL SERVICES ENVIRONMENTAL SERVICES OVERVIEW Environmental Services administers 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 including the City's National Pollutant Discharge Elimination System Permit (NPDES). The NPDES Permit Program controls water pollution by regulating point sources that discharge pollution into the waterways. Under Assembly Bill 939, as part of the Integrated Waste Management Act enacted in 1989, local governments are required to prepare, adopt, implement, and maintain plans to reduce waste disposal in landfills. Integrated waste management plans are to include provisions for the proper disposal of household hazardous waste;materials such as pesticides, paints, pool cleaning chemicals, fluorescent lamps, and other toxic materials that are prohibited from being disposed of in landfills. AB 939 allows jurisdictions to impose fees collected at landfills to pay for the costs associated with preparing, adopting, and implementing integrated waste management plans. In Santa Clara County, the current AB 939 fee is $4.10 per ton of garbage disposed of at landfills within Santa Clara County or taken to non-disposal facilities within the County then subsequently transported to landfills outside of Santa Clara County. Of the$4.10 per ton of waste,a total of$2.60 per ton is set aside to fund the countywide Household Hazardous Waste Collection Program. The remaining$1.50 per ton is allocated to the cities in Santa Clara County to implement AB 939 compliance activities. The portion of the AB 939 fee set aside for Household Hazardous Waste (HHW) collection is intended to fund household hazardous waste collection services for a minimum of 4%of households from each of the jurisdictions in the County. Cities must pay for the additional services incurred when more than 4% of their population uses the Household Hazardous Waste Collection Program. In addition, an annual allocation of$50,000 is utilized from the Environmental Program Fund Balance Reserve to help offset other environmental programs within the function, such as non-point source water runoff/pollution administration costs,or emergency environmental clean-up. BUDGET HIGHLIGHTS Notable Budget Changes: • The West Valley Solid Waste fee increased by$9,000 as a result of new garbage diversion legislation. • Street Sweeping Services increased by 3.6%plus$5,000 for additional unscheduled sweeping. The Environmental Services program solid waste revenues include $20,000 from the AB 939 Refuse Surcharge program, and about $186,000 from the West Valley Solid Waste Joint Powers franchise fee surcharge charged to customers on their waste management bill. The Franchise Fee is designated for the West Valley Solid Waste Management Authority dues, the Household Hazardous Waste (HHW) augmentation expense, and increased street sweeping services. In FY 2016/17, revenue and expenditure funding were increased due to higher levels of participation in the HHW Program by Saratoga residents. Current program augmentation provides for 6% of Saratoga households to participate in the program. Program expenses are comprised of staff time and costs associated with environmental programs and regulatory requirements. Estimated expenditures include $287,000 for the Santa Clara Valley Urban Runoff Pollution Prevention Program and West Valley Clean Water Program fees, $44,000 for West Valley Solid Waste Joint Powers Agreement dues, $50,000 for West Valley Sanitation District's storm drain cleaning, and $187,000 for Street Sweeping. The remaining costs reflect staff time and internal service charges. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ENVIRONMENTAL SERVICES GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Franchise Fees 164,589 167,113 185,670 184,429 172,629 187,000 Intergovernmental Revenues 27,201 29,273 28,113 20,000 38,459 20,000 Fees,Licenses and Permits - - - - - - Charge for Services Other Sources - - - - - - TOTAL REVENUES $ 191,790 $ 196,386 $ 213,783 $ 204,429 $ 211,088 $ 207,000 EXPENDITURES Salaries and Benefits 116,245 138,509 141,697 168,053 164,954 171,781 Operating Expenditures Materials&Supplies 6 - - - - - Fees&Charges 251,248 278,490 283,842 316,562 316,041 331,535 Consultant&Contract Sery 220,412 219,569 251,144 274,558 226,250 301,274 Meetings,Training - - - - - - Total Operating Expenditures 471,667 498,059 534,986 591,120 542,291 632,809 Fixed Assets - - - - - - Internal Service Charges 27,431 29,087 28,056 29,556 29,556 26,359 TOTAL EXPENDITURES $ 615,342 $ 665,655 $ 704,738 $ 788,729 $ 736,801 $ 830,949 FY 2018/19 WORKPLAN PRIORITIES Clean Water Program-Since 1994,the City of Saratoga has participated in the West Valley Clean Water Program, along with Campbell, Monte Sereno, and Los Gatos. Clean Water Program dues provided administrative guidance and implementation compliance for the Regional National Pollution Discharge Elimination System (NPDES) Stormwater Permit through assistance with permit administration, public outreach, code compliance, attendance at local storm water meetings, and permit compliance. In February 2017,the member cities approved the formation of a Joint Powers Authority. The West Valley Clean Water Program Authority held its first meeting in May 2018. The new Clean Water Program Authority structure enables the cities to continue the existing partnership for managing collaborative activities and programs. The Authority has independent legal rights, and debts, liabilities and obligations would belong to the entity, and not the contracting parties. The Authority also has the power to invoke bonding authority as well as taxing ability to provide alternative funding sources in the future. The Authority offers economies of scope and scale for program management and implementation, staffing and fiscal flexibility, and maintaining greater regional influence as a unified whole. As part of this structure,the Public Works Directors of each agency will act as technical advisory to the Board. The Authority's Board of Directors are comprised of elected officials from each of the member cities and also serve as the Board members for the West Valley Solid Waste Authority Solid Waste Management- Garbage and recycling collection services in the City of Saratoga are managed by the West Valley Solid Waste Management Authority, comprised of four(4)member agencies: Saratoga,Campbell,Los Gatos, and Monte Sereno. A Council Member is assigned to represent the City, and City Manager's Office staff provide staff liaison services. In December 2013,the Authority approved an agreement with West Valley Collection & Recycling for garbage and recycling services. The new agreement runs from March 1, 2014 to February 2024. The agreement increased the type of materials accepted for recycling,including some electronic waste products,and includes provisions to convert the garbage company fleet to compressed natural gas vehicles within the first few years of the agreement. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ENVIRONMENTAL SERVICES Hazardous Household Waste—Continue efforts to inform Saratoga residents of the HHW program and the proper disposal of hazardous substances. The goal is to increase participation levels. 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 a-waste recycling and household hazardous waste programs • Provide storm drain cleaning ENVIRONMENTAL SERVICES STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Public Works Director 0.10 0.10 0.10 0.10 0.10 Senior Civil Engineer 0.15 0.15 0.15 0.15 - Associate Engineer - 0.25 Assistant Engineer - - - Administrative Analyst I/II 0.45 OAS 0.45 0.45 0.45 Administrative Technician 0.25 0.25 0.25 0.25 0.25 Office Specialist WM - - - Parks Maintenance Manager Parks Maintenance Lead Parks Maintenance Worker VWM Street Maintenance Manager Street Maintenance Lead Street Maintenance Worker I/II/III - - - - - TOTAL FTE's 0.95 0.95 0.95 0.95 1.05 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors Maintenance Worker Engineering Intern GIS/Graphics Tech Administrative Analyst TOTAL ANNUAL HOURS CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ENVIRONMENTAL SERVICES PERFORMANCE OBJECTIVES AND MEASURES 201VIS 2015/16 2016/17 2017/18 2018/19 Actuals Actuals Actuals Estimated Budget 1. Provide effective oversight of waste collection and recycling programs. a. Tons of solid waste collected in Saratoga: 29,000 27,967 27,500 26,000 28,000 b. Tons of solid waste diverted from landfills: 16,900 15,200 15,000 14,800 15,000 c. Meet State requirements for garbage diversion: Yes Yes Yes Yes Yes 2. Meet requirements of the Non-Point Source Pollution Prevention Permit specified for City staff.• a. Percentage of regional meetings attended: 909/0 100% 1009/0 100% 100% b. Percentage of required reports completed and 100% 100% 100910 100% 100% submitted by deadline: 3 Protect Saratogas natural environment through participation in the West Valley Clean Water Program. a. Percentage of regional meetings attended: 90% 100% 90% 100% 100% b. Respond to reports of illicit and illegal discharges_ 100% 100% 100910 100% 100% ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Actuals Estimated Budget 1. Number of Saratoga residents participating in 676 675 675 743 872 Countywide Household Hazardous Waste Program: 2. Miles of streets swept per month: 550 550 550 550 550 3. Number of bags of garbage collected at creek clean-up 15 15 15 10 2 events: CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET STREETS & STORm DRAINS STREETS & STORM DRAINS OVERVIEW The Streets and Storm Drains program provides for ongoing maintenance and minor repairs to the City's roadways, storm drains, asphalt pathways, bridges, curbs, gutters, and concrete sidewalks to ensure the City's public infrastructure is maintained in a safe, sustainable, and cost effective manner. Program activities include small street repair projects, filling of potholes, maintenance of roadway signs, traffic markings (paint), signals, streetlights, and debris removal. Streets program staff coordinate program work with the General Engineering Division for traffic and roadway projects,and with the Parks program for weed control and storm drain work. The Streets and Storm Drains program represents the consolidation of several programs in prior year budgets. With the realignment of capital project expenses to the Capital Improvement Plan, the focus of this program was limited to ongoing street and storm drain related activities effective with the FY 2007/08 budget. This resulted in combining the former Streets Maintenance program with the Flood Control and Storm Drain program and the Gas Tax program for maintenance services, and moving contract pavement management activity to the Capital Improvement Plan. BUDGET HIGHLIGHTS Notable Budget Changes: • None One of the City Council's primary objectives is to provide safe, well-functioning beautiful infrastructure, including the City's curbs, storm drains, asphalt pathways,bridges, concrete sidewalks, medians, and hillside retaining walls. While roadway resurfacing contracts and related expenses are funded in the Capital Improvement Plan, staffing costs for contract oversight and roadway maintenance services are provided through this General Fund Street and Storm Drain Maintenance Operating Budget program,through both staff and contract service efforts. 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 $190,000 per year, and is used to help support this program's maintenance activities. Overall, the core activities of street repair work, weed control, signage, and maintenance of drainage facilities remain fairly stable from year to year,and hence the expenditure budget is fairly consistent with past budgets. Lean and efficient support for the City's objective includes operating expenses such as traffic light repair services and electricity, street tree maintenance, minor tools, supplies, equipment and training for staff to carry out this work, as well as internal service charges to support the program. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET STREETS & STORM DRAINS GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues 185,393 186,832 182,943 122,000 187,743 190,000 Fees,Licenses and Permits - - - - - Charge for Services 1,240 3,685 11,504 4,823 Rental hicome - - - - Other Sources - 4,264 - - 958 - TOTAL REVENUES $ 186,633 $ 194,781 $ 194,447 $ 122,000 $ 193,524 $ 190,000 EXPENDTI'URES Salaries and Benefits 938,074 1,004,916 1,132,821 1,164,960 1,138,816 1,154,318 Operating Expenditures Materials&Supplies 10,144 11,751 8,448 15,600 9,242 15,600 Fees&Charges 31,721 32,962 33,654 35,200 30,848 35,000 Consultant&Contract Sery 88,809 57,087 109,772 82,000 83,726 87,000 Meetings,Training 6,556 1,960 4,088 6,500 2,956 2,590 Total Operating Expenditures 137,230 103,760 155,962 139,300 126,772 140,190 Street Projects - - - - - - Fixed Assets - - - - - - Internal Service Charges $ 378,965 $ 338,434 $ 347,219 $ 354,542 $ 354,542 $ 349,322 TOTAL EXPENDITURES $ 1,454,269 $ 1,447,110 $ 1,636,003 $ 1,658,802 $ 1,620,130 $ 1,643,830 FY 2018/19 WORKPLAN PRIORITIES Pavement Management-Street Program staff will manage various street capital projects and all maintenance work on City roadways (145 miles), storm drains (45 miles), sidewalks (15 miles), bridges (20), as well as maintain approximately 15,000 signs and street restriping as needed. Council Policy effective FY 2016/17 set a goal of$2 million of funding be designated for Street Resurfacing in the Capital Budget. This goal will be met once funding from Measure B is restored. Funding from Gas Tax, General Fund allocations, and various grants provides the remainder of CIP Street project funding while Street Division staff time and regular 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. Temporary staff maintenance worker assistance for roadway projects during the summer months is funded in this roadway project Retaining Wall Maintenance-In FY 2017/18,the City established a separate CIP for Retaining Wall repair projects in the amount of$200,000,while minor maintenance will continue to be funded through the operating budget. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET . 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 STREETS & STORM DRAINS STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Public Works Director 0.25 0.25 0.25 0.25 0.25 Senior Civil Engineer - - - - - Associate Engineer 0.25 0.25 0.25 0.25 Assistant Engineer - - - - Administrative Analyst V11 Administrative Technician - - - - - Office Specialist IVM 0.40 0.40 0.40 0.40 0.40 Parks Maintenance Manager - - - - - Parks Maintenance Lead Parks Maintenance Worker VWM - - - - Street Maintenance Manager 0.95 0.95 0.95 0.95 0.95 Street Maintenance Lead 2.00 2.00 2.00 2.00 2.00 Street Maintenance Worker I/11/III 3.75 3.75 3.75 3.75 3.75 TOTAL FTE's 7.60 7.60 7.60 7.60 7.35 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors 2,668 1,792 1,792 Maintenance Worker - - - Engineering Intern GIS/Graphics Tech Administrative Analyst - - - TOTAL ANNUAL HOURS 2,668 1,792 1,792 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET STREETS & STORM DRAINS PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. To provide safe and functional roadway systems throughout the City. a. Maintain Pavement Condition Index average above 70 69 69 71 71 71 (out of 100 total points): b. Percentage of potholes repaired within 24 hours of 100% 100% 100% 100% 100% notification: 2. Maintain safe,well functioning infrastructure. a. Storm drains cleaned and maintained to function 1,300 1,300 1,300 1,300 1,050 properly and avert damage from major storm events: ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of signs installed and replaced: 1,500 1,500 1,700 1,500 1,500 2. Amount of grant funding the City received for street $0 $0 $0 $0 $0 resurfacing: CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PARKS & LANDSCAPE MAINTENANCE PARKS & LANDSCAPE MAINTENANCE OVERVIEW The focus of the Parks &Landscape Maintenance program is to provide attractive, well maintained, water efficient landscaping and turf through the management and maintenance of the City's parks, trails, open spaces and facility grounds, as well as the landscaped medians and islands in the roadways. Facilities within the City's parks, trails, and open spaces such as bathrooms, pedestrian lighting, walkways, playground and other recreation facilities are safe, clean, and well-maintained for residents and visitors. The Parks & Landscape Maintenance Division is responsible for maintaining 87 acres of parkland in 14 parks,and 250 acres of trails and open space areas throughout the City. The City-owned Hakone Gardens Park Japanese Garden areas are tended by a separate non-profit foundation; however the City retains maintenance of the facility's infrastructure. Currently, the City is the lead agency for a master plan study jointly funded by Hakone and the City for preservation of the historic gardens and future improvements to include a retreat center tea room. BUDGET HIGHLIGHTS Notable Budget Changes: • One time funding for the Quarry Park Maintenance building. The building's foundation was completed in FY 2017/18. • Contract landscape maintenance costs increases Budgeted revenues for this program are comprised of the banner rental fees, tree/bench dedication fees, park attendant fees, and administrative fees from Landscape & Lighting Districts for staffing, engineering, legal, and maintenance expenses. In prior years, the Parks & Landscape Maintenance program oversaw Park rentals, the Sport User Group Agreements and Prospect High School's field rentals. In mid-FY 2014/15, Park and Sport Use rental duties were transferred to the Recreation Department. The budget for park rental revenues and rental related expenditures were shifted to Recreation effective with the FY 2015/16 budget year,which resulted in a significant revenue decrease in this program. Staff time and maintenance costs to maintain the parks and fields remain in the Parks & Landscape Maintenance budget, The Park & Landscape Maintenance expenditure budget includes funding for landscaping materials, supplies, equipment, and services. For FY 2018/19, one-time funding of$20,000 is included for a Maintenance Building located at Quarry Park. Annual funding is included to replenish playground fibar at the various parks on a rotating basis, and another $15,000 to beautify the City for the America in Bloom program. The implementation of the Parks, Trails, Grounds, and Medians, (PTGM) capital project will act as an annual funding source for the replacement of park, trail, grounds, and median infrastructure fixtures, and equipment. The cost of water has also increased, adding another $40,000 to the budget. The remainder of the expenditure budget is for staffing and internal service charges. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PARKS & LANDSCAPE MAINTENANCE GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits - - - - - - Charge for Services 169,429 179,667 171,927 180,115 196,320 193,718 Rental hicome 79,791 3,000 2,520 2,000 2,340 2,000 Other Sources 5,775 4,190 2,430 2,500 2,590 2,500 TOTAL REVENUES $ 254,995 $ 186,857 $ 176,877 $ 184,615 $ 201,250 $ 198,218 EXPENDITURES Salaries and Benefits 912,701 984,897 997,121 1,046,076 1,007,705 1,107,888 Operating Expenditures Materials&Supplies 73,592 85,348 90,616 97,500 97,325 99,000 Fees&Charges 203,027 196,716 218,304 194,330 244,188 234,380 Consultant&Contract Sery 517,302 576,697 571,335 596,220 587,135 638,720 Meetings,Training 1,851 1,811 5,812 6,000 7,521 6,000 Total Operating Expenditures 795,771 860,572 886,067 894,050 936,170 978,100 Fixed Assets 35,343 - - 20,000 19,785 20,000 hitemal Service Charges 408,178 354,865 349,450 363,758 363,758 357,775 TOTAL EXPENDITURES $ 2,151,993 $ 2,200,334 $ 2,232,638 $ 2,323,884 $ 2,327,418 $ 2,463,763 FY 2018/19 WORKPLAN PRIORITIES Water Efficiency- The Parks and Landscape Maintenance Division will continue to monitor the City's irrigation system as needed, to reduce water use through plant selection, soil management, and irrigation methods. While the drought is officially over in California, turf areas will continue to be investigated as potential conversion sites into native landscape, hardscape or mulched areas to reduce water usage. Since 2014, the City has converted approximately 75,000 square feet of turf to drought tolerant landscaping at the following parks: Beauchamps, Brookglen,Bellgrove,Kevin Moran Park, Saratoga Prospect Center,Azule,Foothill, Gardiner, and the front area of City Hall. There are no turf reduction projects planned for FY 2018/19 due to larger projects taking priority. Turf reduction efforts will resume in the future as time and resources permit. Playground Safety Improvements - Staff continues to oversee the safety and structural integrity of playground equipment at all parks. Improvements include converting 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 in accordance with a 15-25 year replacement schedule. Replacement criteria is based on major equipment wear and tear and changes in safety regulations on outdated structures. Parks, Trails, Grounds & Medians (PTGM) Fixed Asset Oversight - Staff will manage PTGM fixed asset replacements in accordance with funding availability in the PTGM capital project, assessing and revising replacements schedules as necessary. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 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 PARKS & LANDSCAPING STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Public Works Director 0.20 0.20 0.20 0.20 0.20 Senior Civil Engineer - - - - - Associate Engineer Assistant Engineer Administrative Analyst I/II Administrative Technician - - - - - Office Specialist WM 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 1.75 1.75 1.75 1.75 Parks Maintenance Worker I/II/III 5.75 5.00 5.00 5.00 5.00 Street Maintenance Manager - - - - - Street Maintenance Lead Street Maintenance Worker 1/II/III - - - - - TOTAL FTE's 8.40 8.40 8.40 8.40 8.40 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors Maintenance Worker Engineering Intern G1S/Graphics Tech Administrative Analyst TOTAL ANNUAL HOURS CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PARKS & LANDSCAPE MAINTENANCE PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 - Ac tuals Ac tuals Actuals Estimated Budget 1. Maintain safety standards in parks and playgrounds. a. Percentage of parks with playground equipment 100% 100% 100% 100% 100% inspected monthly: 2. Protect Saratogas natural beauty by maintaining parks and open space. a. Percentage of reports of needed park maintenance 100% 100% 100% 100910 100% receiving response within 48 hours: b. Percentage of reports of needed trail maintenance 100% 100% 100% 100% 100% receiving response within 48 hours: 3. Protect the environment through sustainable practices. a. Staff Maintenance workers maintaining pesticide 100% 100% 100% 1009/0 100% licenses: b. Improved irrigation controllers installed to increase 1 0 1 0 5 water efficiency: c. Turf removed and converted to landscape or hardscape for water conservation(in square feet): 37,087 22,174 16,096 0 0 ACTIVITY AND WORKLOAD HIGHLIGHTS 201VIS 2015/16 2016/17 2017/18 2018/19 Actuals Actuals Actuals Estimated Budget 1. Number of sport user group agreements: 13 Moved to Moved to Moved to Moved to Recreation Recreation Recreation Recreation 2. Total acres of City parks maintained: 125 189 189 189 189 3. Total number of new trees planted in City parks: 40 40 30 40 20 4. Parks and Recreation Commission Meetings: 6 6 6 6 6 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET VEHICLE & EQUIPMENT MAINTENANCE VEHICLE & EQUIPMENT MAINTENANCE OVERVIEW The Vehicle & Equipment Maintenance Fund is operated as an Internal Service Fund to maintain all City vehicles and equipment in accordance with manufacturers' recommendations and requirements, and to ensure all vehicles and equipment are safe and function well. Staff provides preventative maintenance and repair services; maintains the repair, ownership, warranty, and maintenance records of vehicle and equipment inventory; provides for regular cleaning of all vehicles in accordance with the City's non-point source permit; maintains sufficient fuel supplies at all times; maintains records of fuel usage; and performs monthly operational tests of emergency generators. Mechanical and body work repairs are provided through auto and equipment shops and services. BUDGET HIGHLIGHTS Notable Budget Changes: • None Revenues from this program reflect allocated charges to departments with assigned vehicles for the cost of providing maintenance and repair services, and fueling vehicles and equipment. The Internal Service Fund chargeback has remained steady at$275,000 for FY 2018/19. 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. While budget has remained steady for FY 2018/19, actual costs for equipment maintenance are expected to trend down due to the scheduled replacement of the loader/backhoe. The cost of fuel is expected to increase next year due to both inflation and the added gas taxes from the Road Repair and Accountability Act of 2017. Budget has remained steady here also as the city's green fleet of vehicles should balance the expected increase in fuel costs in FY 2018/19. The Vehicle & Maintenance program chargeback is set slightly higher than operating expenditure to increase fund balance reserves in line with Council policy. Overall,this budget supports Council's objective to maintain vehicles and equipment in a safe, secure,sustainable,and cost effective manner. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET VEHICLE & EQUIPMENT MAINTENANCE FUND FINANCIALS 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted S OURCE OF FUNDS Beginning Fund Balance Unassigned 36,350 115,565 165,950 176,907 192,075 251,500 Total Beginning Fund Balance $ 36,350 $ 115,565 $ 165,950 $ 176,907 $ 192,075 $ 251,500 Revenues Internal Service Charges 300,000 275,003 275,000 275,000 275,000 275,000 Total Revenues $ 300,000 $ 275,003 $ 275,000 $ 275,000 $ 275,000 $ 275,000 Operating Transfers In Transfer hi - - - - - Total Operating Transfers $ - $ - S - S - $ - $ TOTAL SOURCE OF FUNDS $ 336,350 $ 390,568 $ 440,950 $ 451,907 $ 467,075 $ 526,500 USEOF FUNDS EXPENDITURES Salaries and Benefits 81,468 86,413 86,785 92,748 89,812 105,125 Operating Expenditures Materials&Supplies 43,384 41,888 44,511 61,500 45,647 61,500 Fees&Charges 5,265 6,384 5,957 6,000 5,221 6,000 Consultant&Contract Sery 44,258 42,175 77,704 50,000 25,312 50,000 Meetings,Training - - - - - - Fixed Assets - - - - - - hitemal Service Charges 46,410 47,758 49,084 49,584 49,584 49,797 Total Expenditures $ 220,785 $ 224,618 $ 264,042 $ 259,832 $ 215,576 $ 272,422 Operating Transfers Transfers Out - Total Operating Transfers $ - $ - $ $ - $ - $ Ending Fund Balance Unassigned 115,565 165,950 176,907 192,075 251,500 254,078 Total Ending Fund Balance $ 115,565 $ 165,950 $ 176,907 $ 192,075 $ 251,500 $ 254,078 TOTAL USE OF FUNDS $ 336,350 $ 390,568 $ 4409950 $ 451,907 $ 467,075 $ 526,500 FY 2018/19 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 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 VEHICLE & EQUIPMENT MAINTENANCE STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Public Works Director Senior Civil Engineer Associate Engineer Assistant Engineer Administrative Analyst 1/II Administrative Technician - - - - - Office Specialist II/III 0.10 0.10 0.10 0.10 0.10 Parks Maintenance Manager 0.05 0.05 0.05 0.05 0.05 Parks Maintenance Lead - 0.25 0.25 0.25 0.25 Parks Maintenance Worker I/WM 0.25 - - - - Street Maintenance Manager 0.05 0.05 0.05 0.05 0.05 Street Maintenance Lead - - - - - Street Maintenance Worker I/U/III 0.25 0.25 0.25 0.25 0.25 TOTAL FTE's 0.70 0.70 0.70 0.70 0.70 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors Maintenance Worker Engineering Intern GIS/Graphics Tech Administrative Analyst TOTAL ANNUAL HOURS CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET VEHICLE & EQUIPMENT MAINTENANCE PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Provide safe and functional vehicles and equipment for City use. a. Percentage of fleet vehicles receiving annual safety 100% 100% 100% 100% 1000/0 inspections: b. Percentage of fleet vehicles receiving annual 100% 100% 100% 100% 100% preventative maintenance: 2. Protect natural resources through sustainable practices. a. Percentage of City vehicle fleet using alternate fuels 17% 17% 17% 17% 24% (including hybrid vehicles): ACTIVITY AND WORKLOAD HIGHLIGHTS I 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of vehicles maintained: 23 26 26 26 26 2. Number of oil changes performed per year: 46 52 52 52 52 3. Number of required smog checks performed per year: 13 16 10 10 16 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET VEHICLE & EQUIPMENT REPLACEMENT VEHICLE & EQUIPMENT REPLACEMENT OVERVIEW The Equipment Replacement Fund provides a consistent level of funding for the replacement of vehicle and equipment assets at the end of their life span. A replacement schedule for the City's vehicles and equipment replacements over the next twenty years 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 HIGHLIGHTS Notable Budget Changes: • A large backhoe/loader is scheduled for replacement in FY 2018/19 at a cost of$145,000. This is the City's most expensive heavy equipment vehicle,and expected to be used for at least 20 years. To achieve an effective use of funds, replacement fund chargebacks are accumulated at a rate that will provide for current funding requirements, not grow to a full replacement funding reserve. Replacement funding schedules are adjusted on an ongoing basis as vehicle and equipment costs increase at faster or slower rates than anticipated, and lifespans sometimes fall short or exceed the original timeframe. Expenditures for this program are limited to replacement costs and leasing(in lieu of purchase)costs. Staffing is not assigned to this program as the Internal Service Fund operates purely as a funding set-aside for vehicle and equipment replacements. Public Works' large backhoe/loader was eliminated from the replacement schedule in FY 2012/13 and replaced with a smaller loader/grinder piece of heavy equipment.. After the winter storms in 2017,this decision was revisited,and it was determined to reinstate the large backhoe/loader replacement funding stream. To accommodate this change, the annual chargeback amount was increased by$25,000,up to $150,000 per year. No further funding increases for this replacement program are expected at this time. Due to higher than expected electric auto and truck replacement costs, a couple of the FY 2017/18 scheduled replacements were delayed until FY 2018/19. The full list of replacements assets scheduled for FY 2018/19 are identified in the following schedule. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET VEHICLE & EQUIPMENT REPLACEMENT FUND FINANCIALS 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Estimated Proposed S OURCE OF FUNDS Beginning Fund Balance Unassigned 508,880 649,497 611,708 585,986 585,986 488,968 Total Beginning Fund Balance $ 508,880 $ 649,497 $ 611,708 $ 585,986 $ 585,986 $ 488,968 Revenues Other Sources 6,393 22,734 - - - - Internal Service Charges 200,000 140,831 125,000 150,000 150,000 150,000 Total Revenues $ 206,393 $ 163,565 $ 125,000 S 150,000 S 150,000 $ 150,000 Operating Transfers In Transfers In - - - - - - Total Operating Transfers $ - $ - $ - $ - S - S - TOTAL SOURCE OF FUNDS $ 715,273 S 813,062 S 736,708 $ 735,986 $ 735,986 $ 638,968 USE OF FUNDS EXPENDITURES Operating Expenditures Materials&Supplies - - - - - - Fees&Charges 6,733 7,345 5,015 12,600 12,600 12,600 Consultant&Contract Sery - - - - - - Meetings,Training - - - - - - Fixed Assets 59,043 194,010 145,707 248,200 234,418 299,200 Internal Service Charges - - - - - - Total Expenditures $ 65,775 $ 201,355 $ 150,722 $ 260,800 $ 247,018 $ 311,800 Operating Transfers Transfers Out - - - - - - Total Operating Transfers $ - $ - $ - $ - $ - $ - Ending Fund Balance Unassigned 649,497 611,708 585,986 475,186 488,968 327,168 Total Ending Fund Balance $ 649,497 $ 611,708 $ 585,986 $ 475,186 $ 488,968 $ 327,168 TOTAL USE OF FUNDS $ 715,273 $ 813,062 $ 736,708 S 735,986 $ 735,986 $ 638,968 FY 2018/19 WORKPLAN PRIORITIES Vehicle Replacement - Purchase replacement vehicles and equipment in accordance with the FY 2018/19 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET VEHICLE & EQUIPMENT REPLACEMENT 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 FY 2018/19 EQUIPMENT REPLACEMENT SCHEDULE Current Yr Current Asset Replacement Replacement Type/Program Asset# Parch Vehicle/Equipment Life Purpose Cost Vehicles Parks 115 2007 Silverado Ext 12 Parks Vehicle 36,000 Parks 122 2008 Silverado Ext 11 Streets Vehicle 38,000 Special Use Vehicles Streets * 1998 Backhoe/Loader 20 Roadway Special Use 145,000 Equipment Streets E001 1996 Paint Sprayer Graco 3500 20 Graffiti abatement 3,500 Streets E006 2001 Graco Line Lazzar III 5900 15 Roadway Paint Striper 8,500 Streets E007 2001 Graco Line Driver 15 Motorized Attachment 7,500 Streets E010 2004 Graco Line Lazzar IV 3900 12 Roadway Paint Striper 7,500 Streets E015 2001 Sase Scarifier 16 Pavement Grinder 13,200 TOTAL REPLACEMENT FUNDING $ 259,200 *The City's large Backhoe/Loader was surplused in FY2012113 but kept for limited use while a smaller Loader/Grinder was purchased to replace it. The current year decision is to reinstate the large BackhoelLoader equipment. Note: Leased vehicles are funded within the Vehicle&Equipment Replacement program,but do not appear on this replacement schedule. Leased autos have an initial downpayment cost and subsequent monthly lease payments rather than an estimated replacement cost. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET LANDSCAPE & LIGHTING DISTRICT LANDSCAPE & LIGHTING DISTRICT OVERVIEW The City's Landscape and Lighting District consists of 28 landscape and/or lighting zones and two storm drain maintenance zones throughout the City. The zones are established if a majority of the property owners living along or within the boundaries of the zones elect to create the legal entity that allow the City to collect a parcel assessment and maintain the zone on their behalf. Zones are funded through property tax assessments or through property- owner approved benefit assessments. Four of the City's zones are funded solely by property taxes, and another three zones are funded by both property tax and benefit assessments. The remaining twenty-three 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 zones,three zones approved a benefit assessment also be levied to augment funding. The benefit assessment-based zones 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, these built-in annual escalation allowances enables the City to provide the same level of services year-over-year. Only two of the zones established prior to the passage of Prop 218 do not currently have this allowance for annual increases built into the agreement. BUDGET HIGHLIGHTS Notable Budget Changes: • None The Landscape & Lighting District Fund budget schedule presented on the following page is a summary of 30 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. The Landscape & Lighting District administrative service fee expense is, in turn, a revenue to the Parks & Landscape Maintenance program. The separate Fund assessments reflect the continued practice of growing fund balance reserves to a level that provides sufficient cash flow, and/or is available to use for future year repairs and projects. An adequate reserve balance requirement was established to safeguard the City from paying for unplanned costs up front,and waiting for repayment in following years. In compliance with Regional Water Control Board permit requirements, the City creates Clean Water Assessment Zones for private developments that met the threshold of mitigation. Currently,there are two zones of this kind for the City. No new zones are anticipated for this fiscal year. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET .1 LANDSCAPE & LIGHTING DISTRICT FUND FINANCIALS 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Adjusted Ac tuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 733,836 8679648 19005,796 1,152,874 1,1529874 19385,345 Total Beg Fund Balance $ 733,836 $ 867,648 $1,005,796 $1,152,874 $1,152,874 $1,385,345 Revenues Property Taxes 2329659 2489037 259,633 2319007 2839499 241,932 L&L As s e s sments 3239031 322,693 390,596 4609860 455,968 4349626 Other Sources 10,793 29,097 8,028 299856 17,480 7,693 Total Revenues $ 566,483 $ 599,827 $ 658,256 $ 721,723 $ 756,946 $ 684,251 Operating Transfers In Transferin - Total Operating Transfers In $ $ $ S - $ $ TOTAL SOURCE OF FUNDS $1,300,319 $1,467,475 $1,664,053 $1,874,597 $1,909,820 $2,069,596 USE OF FUNDS Expe nditure s Operating Expenditures Materials&Supplies - - - - - - Fees&Charges 283,353 2859034 2959940 318,144 3249221 3249325 Consultant&Contracts 1499318 1769644 2159238 480,816 2009254 4509295 Total Operating Expenditures 432,671 461,679 5119179 798,960 5249475 7749620 Total Expenditures $ 432,671 $ 461,679 $ 511,179 $ 798,960 $ 524,475 $ 774,620 Ending Fund Balance Unassigned 8679648 1,0059796 1,152,874 1,075,637 1,3859345 1,294,976 Total Ending Fund Balance $ 867,648 $1,005,796 $1,152,874 $1,075,637 $1,385,345 $1,294,976 TOTAL USE OF FUNDS $19300,319 $1,467,475 $1,664,053 $1,874,597 $1,909,820 $2,069,596 FY 2018/19 WORKPLAN PRIORITIES District Zone Assessments- Staff will continue to closely monitor all Landscape & Lighting Assessment District Zones for appropriate service and funding levels,and will make a determination of whether the City should proceed with a vote on assessment increases for several of the districts that currently have low fund balances. New District Zone Formations-The Regional Water Control Board conditions development projects of a certain size to contain storm water infrastructure to protect water ways. These conditions require the City to ensure inspections, maintenance and capital expenditures are conducted into the future. To fund these expenditures, the City creates assessment zones to manage property tax assessments and expenditures. Staff oversees these storm water activities,and will continue to create and maintain additional storm water assessment zones as required. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET LANDSCAPE & LIGHTING DISTRICT ANNUAL ZONE ASSESSMENTS Zone Number of Parcel Total Total No. Assessment Zones Parcels Assessment Assessment Property Tax Lighting Zones 231 Village Lighting 781 $ $ $ 82,282 232 Azule Lighting 120 $ $ $ 37,785 233 Sarahills Lighting 64 $ 91.70 $ 5,851 $ - Landscape Zones 241 Arroyo de Saratoga Landscape 250 $ 115.75 $ 26,583 $ 242 Bonnet Way Landscape 41 $ 126.00 $ 5,166 $ 243 Carnelian Glen 20 $ 230.15 $ 4,769 $ 244 Cunningham/GlasgowLandscape 31 $ 317.35 $ 9,606 $ - 245 Fredericksburg Landscape 85 $ 83.02 $ 7,409 $ 1,018 246 Greenbriar Landscape 176 $ 137.42 $ 25,147 $ 6,589 247 Kerwin Ranch Landscape 16 $ 887.63 $ 14,910 $ - 248 Leutar Court Landscape 9 $ 499.78 $ 4,723 $ - 249 Manor Drive Landscape 29 $ 81.03 $ 2,397 $ 4,669 251 McCartysville Landscape 48 $ 339.73 $ 17,122 $ - 252 Prides Crossing Landscape 864 $ 93.00 $ 81,424 $ 253 Saratoga Legends Landscape 15 $ 723.87 $ 11,075 $ 254 Sunland Park Landscape 200 $ 106.85 $ 22,438 $ 255 Tricia Woods Landscape 9 $ 279.33 $ 2,549 $ 256 Allendale Landscape 43 $ 92.84 $ 4,072 $ Landscape&Lighting Zones 257 Covina Landscape&Lighting 192 $ 163.24 $ 19,131 271 Beauchamps Landscape 55 $ 221.16 $ 12,772 $ 272 Bellgrove Landscape&Lighting 94 $ 664.76 $ 62,234 $ 273 Gateway Landscape&Lighting 22 $ 733.88 $ 17,068 $ 274 Horseshoe Landscape&Lighting 53 $ 267.60 $ 14,892 $ - 275 Quito Lighting 698 $ - $ - $ 69,182 276 Tollgate Landscape&Lighting 61 $ 108.82 $ 7,007 $ - 277 Village Commercial Landscape 132 $ - $ - $ 40,408 278 Westbrook Landscape&lighting 92 $ 52.58 $ 5,079 $ - 279 Brookview Landscape&Lighting 326 $ 126.09 $ 20,844 $ Storm Drain Zones 291 Hill Ave Storm Water 5 $ 762.00 $ 3,911 $ 292 Paramount Court Storm Drain 7 3,721.14 $ 26,448 $ - 30 Assessment Zones 4,538 $ 434,626 $ 241,932 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET RECREATION & FACILITIEs DEPARTMENT DEPARTMENT OVERVIEW The Recreation&Facilities Department contributes to the quality of life in Saratoga through a wide variety of diverse activities, services, and programs for people of all ages through both the Recreation and Teen Services divisions. In addition,the Department administers the Facility Rental program for community groups and the public at the City's parks, Community Center,Warner Hutton House, and Prospect Center 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,workshops, seminars,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, family, 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET RECREATION & FACILITIES DEPARTMENT Department Objectives • Promote civic engagement in Saratoga youth through Youth Commission sponsored community events • Develop community partnerships with positive interaction through recreation programs and services Council Strategic Goal Facility&Infrastructure: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 BUDGET HIGHLIGHTS The Recreation and Facilities Department strives to meet a cost recovery target of 65% each year. This is a measurement of General Fund program revenues to expenditures. As Internal Service Funds act as financing mechanisms to serve a purpose separate from the department's recreational and facility rental activities,they are not included in the cost recovery analysis. The upgrade to the v.3 version of RecTrac and WebTrac registration software that was completed in April 2016 continues to improve systems and increase efficiencies in the Department,including Activity Guide publication and web-based capabilities, in the effort to make the cost recovery target more attainable on an ongoing basis. The FY 2018/19 General Fund budget illustrates that this goal is more and more difficult to attain. Recreation revenues decreased significantly in FY 2017/18, and it is unclear if this decline was an anomaly due to staffing changes or a trending pattern. As a conservative measure,FY 2018/19 budgeted revenues reflect this lower revenue expectation, even with efforts underway to turn this around. Additionally, expenditures continue to increase. Rising salary and benefit costs reflect the higher and higher cost of living that the Silicon Valley is struggling under. Wages continue to increase,contract services continue to push costs higher, and instructors are weighing whether to increase class fee to keep up versus the risk of lower class sizes due to the increasing fees. The volatility in recreation revenues is not as pronounced in the Facility Rental program. Revenue is steady for most facilities. An exception comes from the Prospect High School Fields that are no longer part of the City's rental facilities. The Joint Use Agreement with Campbell Union School District for use of the Prospect High School fields expired and was not renewed(at the request of the District). For FY 2018/19, salary and benefit costs increases are due in part to an internal reorganization. Following the resignation of a Recreation Supervisor during FY 2017/18, the staffing structure was reevaluated. The Supervisor position is being converted to Recreation Manager in the effort to increase experienced operational oversight,enhance flexibility,and support for the department's core functions,including the"in-house"youth camps and programs. With the City's ongoing focus to implement citywide emergency event readiness,.30 FTE of the Recreation&Facility Director's time is assigned to the Emergency Preparedness program. In addition the Director also functions as the City's Risk Manager, and has .30 FTE assigned to the Liability Program to oversee claims, insurance requirements, and maintain Risk Management best practices. In the Recreation Department,the Director has .10 FTE of his time assigned to Facility Rentals,and.10 FTE assigned to Facility Maintenance for facility oversight. Only.20 FTE of the Director's time is assigned to Recreation programs. The elevation of the Recreation Supervisor to a Recreation Manager position will provide more hands-on and available direction for those program duties. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET • RECREATION & FACILITIES DEPARTMENT Both Facility Maintenance and Facility Furniture, Fixtures, and Equipment (FFE) Replacement programs are accounted for as Internal Service Fund programs. While a large part of their duties focus on Recreation's Community Center,these programs provide services to all of the City's facilities as a service/support function. 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 program cost to support janitorial, repair, and maintenance functions is allocated to operational programs based primarily on square footage percentages the program uses,with the 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET RECREATION & FACILITIES DEPARTMENT GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits 9,837 12,008 15,298 10,500 8,654 6,000 Charge for Services 595,208 617,303 569,845 599,000 521,174 497,800 Rental Income 300,567 440,088 427,152 391,800 384,390 348,425 Other Sources 25 1 20 - 92 - TOTAL REVENUES $ 905,638 $ 1,069,399 $ 1,012,314 $ 1,001,300 $ 914,310 $ 852,225 EXPENDITURES Salaries and Benefits 662,642 677,759 683,349 659,302 590,045 760,163 Operating Expenditures Materials&Supplies 20,619 34,212 27,196 31,600 20,555 35,150 Fees&Charges 22,021 29,087 150,803 61,525 28,679 45,360 Consultants&Contracts 370,831 407,783 376,952 394,675 302,906 389,500 Meetings,Events,Training 2,119 2,366 2,302 5,400 4,823 6,600 Total Operating Expenditures 415,590 473,448 557,252 493,200 356,963 476,610 Fixed Assets - - - - - - Internal Service Charges 285,194 323,570 332,541 345,445 345,445 362,195 TOTALEXP12NDITURES $ 1,3639425 $ 1,474,777 $ 1,573,142 $ 19497,947 $ 1,2929453 $ 1,598,968 DEPARTMENTAL EXPENDITURES - BY PROGRAM 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND Recreation Services 940,097 1,017,682 1,005,302 943,491 807,764 1,058,283 Teen Services 47,073 53,228 48,870 49,556 39,772 59,310 Facility Rentals 376,256 403,867 518,970 504,901 444,917 481,374 TOTAL GIIVERAL FUND $ 1,363,425 $ 1,474,777 $ 19573,142 $ 1,497,947 $ 1,292,453 $ 1,598,968 EVIHMAL SERVICE FUND Facility Maintenance 813,842 804,049 850,535 870,323 869,578 944,018 Facility FFE Replacement - 40,778 40,853 507,588 277,556 366,400 TOTAL INTERNAL SERVICE $ 813,842 $ 844,827 $ 891,388 $ 1,3779911 $ 1,147,134 $ 1,310,418 TOTAL EXPENDITURES $ 2,1779268 $ 2,319,604 $ 2,464,530 $ 2,875,858 $ 2,439,587 $ 2,909,386 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET .. RECREATION & FACILITIES DEPARTMENT DEPARTMENTAL ORGANIZATION CHART Recreation& Facilities Director 1.0 FTE Recreation Facility Facility Manager Manager Coordinator 1.0 FTE 1.0 FTE .60 FTE Recreation Facility Coordinator Lead Maintenance Lead .70 FTE 1.0 FTE Recreation Facility Coordinator Maint Worker 1.0 FTE 1.0 FTE Recreation Coordinator 1.0 FTE CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET RECREATION & FACILITIES DEPARTMENT RECREATION & FACILITIES DEPARTMENT STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Recreation&Facilities Director 0.65 0.65 0.65 0.40 0.40 Recreation Manager - - - - 1.00 Recreation Supervisor 1.00 0.90 1.90 1.00 - Recreation Coordinator-Lead - - - 0.70 0.70 Recreation Coordinators 2.00 1.85 0.85 2.00 2.00 Facility Coordinator 0.60 0.60 0.60 0.60 0.60 Office Specialist 11/III 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/" 2.00 1.00 1.00 1.00 1.00 TOTAL FTE's 9.25 8.00 8.00 7.70 7.70 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Facility Attendents 1,750 1,900 1,900 2,949 2,949 Recreation Leaders 3,300 2,004 2,004 2,178 2,178 Graphic Design Assistant - 850 - - - Recreation Intern 480 - - 348 Asst Recreation Coordinator - 1,000 280 - TOTAL ANNUAL HOURS 5,050 5,234 4,904 5,407 5,475 RECREATION & FACILITIES STAFF - BY PROGRAM City Staff by Program 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Funded Recreation Services 3.85 3.55 3.55 3.35 3.35 Teen Services 0.25 0.30 0.25 0.30 0.30 Facililty Rentals 1.50 1.30 1.35 1.35 1.35 Building Maintenance 3.65 2.85 2.85 2.70 2.70 Total Recreation Staff 9.25 8.00 8.00 7.70 7.70 Staff allocations in other Department Programs Non-Departmental• Risk Management 0.30 0.30 0.30 0.30 - Public Safety: Emergency Preparedness 0.05 0.05 0.05 0.30 0.30 TOTALS 9.60 8.35 8.35 8.30 8.00 The Recreation&Facilities Departmental Staff schedule includes General Fund and Internal Services staffing assigned within this department. The.30 FTE of the Recreation&Facilities Director's FTE assigned to the Risk Liability division in the Non-Departmental section,and.30 FTE assigned to the Emergency Preparedness division in the Public Safety Department are not reflected in the Department's FTE total,but are reflected above in the Total Staff-by Program schedule. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET RECREATION RECREATION SERVICES OVERVIEW Recreation Services plans,organizes,schedules,promotes,supervises,and evaluates over 1,200 classes and activities per year. This involves managing approximately 61 independent contractors, and offering over 9,000 hours of activities at 24 different parks and facilities,offering a City-run camp program,planning 22 excursions and trips per year,conducting monthly e-mail and social media promotional campaigns, and publishing three full color recreation program Activity Guides that are mailed to all residents and non-resident users. In addition, Recreation Services provides an independently contracted preschool program five days a week; works cooperatively with West Valley College, Redwood Middle School, Los Gatos— Saratoga Recreation(LGS), the neighboring cities of Campbell and Cupertino, and Saratoga High School for use of their facilities. Recreation Services provides Health and Wellness and Arts and Enrichment programs with classes,workshops,camps,seminars,demonstrations,and activities. BUDGET HIGHLIGHTS Notable Budget Changes • Budgeted revenues and expenditures decreased,proportionate with a decrease in class program participation • Recreation Services salaries&benefits were reduced with an internal reorganization • Excursion costs are expected to increase slightly with a corresponding increase in expenses due to growing costs of travel,meals,and entertainment trips. The customer base remains steady The Recreation Services program has four program revenue sources to support services: trip/excursion fees, classes and special program fees,in-house camp programs(summer,winter,and spring),and advertisements in the Recreation Activity Guide. Recreation revenues have seen a decline in recent years due to lower class participation, however camps and excursions remain strong and continue to increase as staff strives to grow the customer base with expanded and popular offerings. Staff is planning additional marketing to targeted populations for all programs. Staff is also pursuing additional partnerships and collaboration with other agencies such as the City of Campbell, the City of Cupertino,LGS Recreation,and private contract providers,such as Cooper-Garrod Farms. Ongoing expenditures in the Recreation Services budget include class instructors, excursion costs, materials and supplies for camps and operations,recreation brochure printing,mailing costs,credit card fees,off-site facility rentals, and annual license and support costs for the Recreation Department's RecTrac system. Class revenue is tied directly to the cost for instructors as each class contract identifies the proportion of class revenue the instructor receives. The remaining ongoing expenditures are mainly for operational supplies and internal service charges. As a cost saving measure,the spring and summer activity guides are combined to reduce publishing costs and provide advance planning for parents with earlier camp registrations. In FY 2017/18, with the resignation of the Recreation Supervisor, the Department re-evaluated staffing needs,and reorganized positions,both for cost savings and efficiencies. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET .' RECREATION SERVICES GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees,Licenses and Permits 9,837 12,008 15,298 10,500 8,654 6,000 Charge for Services 593,733 615,237 566,433 595,500 511,458 491,000 Rental Income - - - - - - Other Sources - - - - - - TOTAL REVENUES S 603,570 S 627,245 S 581,731 S 606,000 S 520,112 $ 497,000 EXPENDITURES Salaries and Benefits 444,981 467,147 482,887 400,504 366,578 481,431 Operating Expenditures Materials&Supplies 16,160 26,679 21,161 19,300 14,118 23,100 Fees&Charges 21,752 28,922 34,851 24,025 19,449 44,850 Consultants&Contracts 370,354 405,629 375,090 393,675 301,789 386,000 Meetings,Events,Training 2,057 2,292 1,969 4,600 4,444 5,800 Total Operating Expenditures 410,322 463,521 433,071 441,600 339,799 459,750 Fixed Assets - - - - - - Intemal Service Charges 84,794 87,014 89,345 101,387 101,387 117,102 TOTAL EXPENDITURES $ 940,097 $ 1,017,682 $ 1,005,302 $ 943,491 $ 807,764 $ 1,058,283 FY 2018/19 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 to continue the ongoing audit and assessment of activities in FY 2018/19 to determine the community's desire for class offerings and identify inadvertent class duplication and/or gaps in services. 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 operational / marketing / promotional assistance to recreation service providers. To this effort, staff will continue to investigate opportunities to work on collaborations and partnerships with Los Gatos Saratoga Recreation District. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 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, and engage in e-mail and social media campaigns, etc. to market and promote recreation classes,camps,and activities • Provide approximately 1,100 classes,camps,etc.and offer 22 excursions per year • Provide an independently operated community preschool program 5 days a week • Provide Health and Fitness and Arts and Enrichment programs with age-appropriate activities that build developmental assets for youth and adults that will give them life skills for the future • Collaborate with local schools,partner agencies,and community based organizations to provide activities RECREATION SERVICES STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Recreation&Facilities Director 0.30 0.30 0.30 0.20 0.20 Recreation Manager - - - - 0.85 Recreation Supervisor 0.90 0.85 1.65 0.85 - Recreation Coordinator-Lead - - - 0.70 0.70 Recreation Coordinators 1.90 1.65 0.85 1.60 1.60 Facility Coordinator - - - - - Office Specialist II/M 0.75 0.75 0.75 Facility Maintenance Manager - - - Facility Maintenance Lead Facility Maintenance Worker I/II/III - - - TOTAL FTE's 3.85 3.55 3.55 3.35 3.35 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Facility Attendents - - - - - Recreation Leaders 3,300 2,004 2,004 2,178 2,178 Graphic Design Assistant - 850 - - - Recreation Intern 480 - - 348 Asst Recreation Coordinator - - 1,000 280 - TOTAL ANNUAL HOURS 3,300 3,334 3,004 2,458 2,526 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET RECREATION SERVICES PERFORMANCE OBJECTIVES & MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Promote healthy lifestyles and personal growth through organized recreation activities. a. Offer a variety of new and ongoing recreation 1,089 1,214 1,200 1,081 1,200 activities: b. Percentage of recreation class participants which 100% 100% 100% 100% 100% agreed recreation activities contribute to healthy lifestyle and personal growth c. Number of Recreation Activity Guides published each 4 4 4 3 3 year which include "Healthy lifestyle"educational information: 2. Partner with the community to improve the quality of life for children, teens,adults,and families. a. Number of independent instructors providing quality 60 56 61 60 66 recreation activities: b. Percentage of Saratoga"households"using online 33% 54% 29% 35% 39% registration software to register for recreation activites: c. Percentage of recreation class participants which agreed activities met or exceeded expectations: 89% 89% 100% 100% 100% ACTIVITY & WORKLOAD HIGHLIGHTS _ 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of recreation activity hours offered: 8,900 8,959 5,699 6,500 7,100 2. Number of participant registrations: 7,000 7,445 5,818 5,790 6,000 3. Number of online registrations: 1,250 1,518 1,319 2,026 2,340 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET TEEN SERVICES TEEN SERVICES OVERVIEW Staff assigned to Teen Services manages teen programs and activities as well as the Youth Commission program. The City Council re-established the Youth Commission in 1988 to play a key role in City-sponsored programs for Teens in Saratoga. The Youth Commission is an eleven(I I)-member commission with a focus to enhance the well-being of local youth,offer positive influences to teens,and provide opportunities for youth involvement in the community. The Commission is comprised of middle and high school students appointed by the City Council for two-year terms, with the commissioners serving as teen leaders, communicating with the City Council on current youth issues, and planning, promoting, and participating in community events, fundraisers, social, and educational activities. Staff members oversee and guide all these activities. Teen Services staff and the Youth Commission work together to: sponsor teen-oriented activities; administer the Youth Commission training;and sponsor three to four special events(i.e.Color Dash,Teen Dances)each year. Teen Services also provides supervision and oversight of teen volunteer opportunities and the Leadership in Training program to help develop citizenship skills for youth. The goal of the Teen Services program is to provide education, community involvement, and recreation opportunities for all teens in Saratoga,regardless of school or district. The connection with the Youth Commission helps to provide an opportunity and training ground for teens to serve as positive role models in the community: to encourage teens throughout the City to become active,contributing citizens; and,to function as a training camp for future community leaders by developing the youth's leadership skills. BUDGET HIGHLIGHTS Notable Budget Changes • Revenue levels were reduced slightly,reflecting limited collections from the Color Dash activity Revenue from for the Teen Services program is minimal,coming from Youth Commission generated programs,such as the Color Dash or dances. The Teen Services program is primarily limited to staff time and expenses for overseeing the Youth Commission,and the summertime Leadership In Training camp. Operating expenditures are minimal,however with Council's request that Youth Commission members attend community events, City funding for materials, supplies, and printing increased in FY 2017/18, and continues in the FY 2018/19 budget. The Youth Commission itself has a separate funding account for their activities and expenses in the Youth Commission's budget, located in the Commission program budget. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET TEEN SERVICES GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Chargefor Services 1,475 2,066 3,412 3,500 9,716 6,800 Other Sources 25 1 20 - 92 - TOTAL REVENUES $ 1,500 $ 2,066 $ 3,432 $ 3,500 $ 9,808 $ 6,800 EXPENDITURES Salaries and Benefits 33,939 37,733 32,097 29,788 23,147 37,293 Operating Expenditures Materials&Supplies 1,893 3,602 2,772 6,650 3,478 6,300 Fees&Charges 104 - 135 150 24 150 Consultants&Contracts - 1,348 - 249 2,500 Meetings,Events,Training - - - 200 106 200 Total Operating Expenditures $ 1,997 $ 3,602 $ 4,255 $ 7,000 $ 3,857 $ 9,150 Internal Service Charges 11,137 11,893 12,518 12,768 12,768 12,867 TOTAL EXPENDITURES $ 47,073 $ 53,228 $ 48,870 $ 49,556 $ 39,772 $ 599310 FY 2018/19 WORKPLAN PRIORITIES Leadership Training-Teen Services will oversee the Youth Commission's participation in the annual CPRS District IV YAC (Youth Advisory Conference) Attack networking social and collaborate with our neighboring cities of Cupertino, Monte Sereno, Los Gatos, and Campbell's Youth Commissions during FY 2018/19 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 and expand 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET TEEN SERVICES KEY SERVICES • Provide activities and special events for pre-teens and teens in the community • Provide volunteer opportunities and a "training ground" for teens to learn leadership skills and become contributing citizens to the community • Liaison with Youth Commission to communicate the interests of the youth population to the City • Build the developmental assets of the youth of Saratoga through ongoing evaluations and assessments of the needs of local teens to determine new programming • Provide supervision and oversight of teen volunteer opportunities TEEN SERVICES STAFF ity Staff 2014/15 2015/16 2016/17 2017/18 2018/19 JLL-TIlvIE EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Recreation&Facilities Director 0.05 0.05 0.05 - Recreation Manager - - - - 0.10 Recreation Supervisor 0.10 0.05 0.20 0.10 - Recreation Coordinator-Lead - - - - - Recreation Coordinators 0.10 0.20 0.20 0.20 Facility Coordinator - - - - Office Specialist II/11I Facility Maintenance Manager Facility Maintenance Lead Facility Maintenance Workerl/WM - - - - - DTAL FTE's 0.25 0.30 0.25 0.30 0.30 emporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 NNUAL HOURS Funded Funded Funded Funded Funded Facility Attendents Recreation Leaders Graphic Design Assistant Recreation Intern Asst Recreation Coordinator DTAL ANNUAL HOURS CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET TEEN SERVICES PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Partner with the community to improve the quality of life for teens. a. Percentage of time Recreation staff member attends 100% 1009/0 100% 100% 100% Youth Commission meetings: b. Percentage of teens in satisfaction survey which 100% 1009/0 100% 100% 100910 agree recreation activities met or exceeded c. Provide teen volunteer opportunity hours: 2,760 2,869 1,606 1,890 2,030 2. Promote healthy lifestyles and personal growth through organized recreation activities. a. Percentage of teens participating in satisfaction 100% 100% 100% 100% 100% survey which agreed recreational activities contributed to healthy lifestyle and personal growth b. Practice and contribute to 'Developmental Assets" 100% 100910 100% 100% 100% for teens as measured by survey: ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of teen-age volunteer service hours offered: 3,000 3,000 1,393 1,890 2,030 2. Number of teen-age volunteers supervised: 27 40 59 50 55 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FACILITY RENTALS FACILITY RENTALS OVERVIEW The Facility Rentals program manages the City's Facility Rental program for private individuals,non-profit, or for- profit-based groups to use for receptions, parties, events, meetings, memorials, workshops, or other community activities. Rental facilities include rooms of various sizes and uses in the Community Center and auxiliary buildings, the Warner Hutton House,the Saratoga Prospect Center complex,the Civic Theater,and numerous City park facilities. 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. BUDGET HIGHLIGHTS Notable Budget Changes: • A small increase in facility rental revenue is expected due to a more conducive calendar(i.e.41 of July on a Wednesday, Christmas on a Tuesday)this year. Rental rates continue to be at or under comparable rentals, with discounts given to residents and non-profit groups • A$2,500 expenditure is planned to build additional standing garden beds for the community garden program. Facility Rental Program revenues are expected to bring in about $110,000 for Community Center rentals, another $5,200 for Senior Center rentals, and$12,000 for the Warner Hutton House. The Civic Center Theater will bring in approximately $44,000 and the Saratoga Prospect Center buildings another $90,000. Revenue projections for the Saratoga Prospect Center had increased in recent years, but the loss of a large church group last year negatively impacted revenues. Plot rentals at the Community Garden at El Quito Park, now exclusively reserved for Saratoga residents, are expected to bring in $3,100, and day-use rentals from the City's parks (exclusive of sport user agreements) will bring in around$23,000 over the year. In FY 2018/19,rental fees for the use of the Sports Fields are expected to total$61,500 for the year,a decrease due to the closure of the Prospect High School fields. The Joint Use Agreement with Campbell Union School District for the use of Prospect High School fields expired in FY 2017/18 and will not be renewed at the request of the District. 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 to supervise the City's facilities during evening and weekend events. The temporary Facility Attendant staffing expenses have increased as rental activities at Saratoga facilities have increased. Direct costs for this program are minimal,with$7,710 budgeted for miscellaneous operational supplies and services, and the Internal Service charges add another$232.000. Facility Rentals accounts for a large percentage of building maintenance and facility furniture, fixture, and equipment replacement expenses as the available square footage and infrastructure are large. These costs continue to grow as building maintenance costs increase each year. The remainder of ongoing facility expenditures typically hold steady. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FACILITY RENTALS GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Charge for Services - - - - - - RentalIncome 300,567 440,088 427,152 391,800 384,390 348,425 Other Sources - - - - - - TOTALREVENUES $ 300,567 $ 440,088 $ 427,152 $ 391,800 $ 384,390 $ 348,425 EXPENDITURES Salaries and Benefits 183,722 172,879 168,365 229,010 200,320 241,439 Operating Expenditures Materials&Supplies 2,566 3,931 3,262 5,650 2,958 5,750 Fees&Charges 165 165 115,817 37,350 9,206 360 Consultant&Contracts 477 2,154 514 1,000 868 1,000 Meetings,Events,Training 63 74 333 600 274 600 Total Operating Expenditures 3,271 6,325 119,926 44,600 13,306 7,710 Internal Service Charges 189,263 224,663 230,678 231,291 231,291 232,225 TOTAL EXPENDITURES $ 376,256 $ 403,867 $ 518,970 $ 504,901 $ 444,917 $ 481,374 FY 2018/19 WORKPLAN PRIORITIES Environmental Sustainability-The Facility Rental division will continue implementing environmental best practices to promote sustainability, educating and encouraging all users to follow existing green building practices, including reducing,reusing,and recycling for facility and park rentals. Facility Rentals - Recreation & Facilities Department staff will provide high quality, safe, affordable, clean, and enjoyable facilities that are convenient to residents for meetings, parties, receptions, and gatherings in a safe, sustainable,and cost effective manner. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FACILITY RENTALS KEY SERVICES • Provide safe,pleasant,and clean facilities for use by the public and for key City services(e.g.meetings) • Support tenant needs in the rented buildings • Enforce environmentally friendly purchasing and sustainability policies • Provide safe and affordable venues for community use at the Saratoga Community Center,Civic Theater, Senior Center,and Prospect Center facilities FACILITY RENTALS STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Recreation&Facilities Director 0.05 0.05 0.05 0.10 0.10 Recreation Manager - - - - 0.05 Recreation Supervisor 0.05 0.05 - Recreation Coordinator-Lead - - - Recreation Coordinators - - - 0.20 0.20 Facility Coordinator 0.60 0.60 0.60 0.60 0.60 Office Specialist IM 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 VWM 0.40 0.20 0.20 0.20 0.20 TOTAL FTE's 1.50 1.30 1.35 1.35 1.35 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Facility Attendents 1,750 1,900 1,900 2,949 2,949 Recreation Leaders - - - - - Grapluc Design Assistant Recreation Intern Asst Recreation Coordinator - - - - - TOTAL ANNUAL HOURS 1,750 1,900 1,900 2,949 2,949 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FACILITY RENTALS PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Provide safe,functional,and attractive City buildings for community use and enjoyment of the public. a. According to facility rental survey,the percentage of 100% 100% 100% 100% 100% visitors who felt their visit to the facility was clean, comfortable,and safe: b. Percentage of customers which agreed facilities met 100% 100% 100% 100% 1009/0 or exceeded expectations: 2. Provide safe,functional,and attractive City buildings for the provision of City services. a. Percentage of surveyed visitors which agreed the 100% 100% 100% 100% 1009/0 facility was clean,comfortable,and safe: ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2013/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of facility rental applications processed: 800 950 991 1,015 1,000 2. Number of fee-based and no-charge (for City meetings, 18,000 18,110 5,520 4,830 3,000 events,etc.)facility rental hours for public use: 3. Average dollars per receipt: $200 $215 $223 $241 $243 4. Number of sport user groups agreements: In Public 0 7 0 0 Works CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET :1 FACILITY MAINTENANCE FACILITY MAINTENANCE OVERVIEW Facility Maintenance provides services to ensure City facilities are clean, safe and functional for the general public and employee use. This program is a citywide support function for custodial, maintenance, repair services, and building improvements for all facilities at the Civic Center,Prospect Center,and Museum Park,and supports the needs of the tenants of City leased buildings as defined in lease agreements(e.g. Senior Center). Facility Maintenance staff plans,schedules,and manages minor and major building facility maintenance,repair,and improvement projects. The Facility Maintenance staff ensures the City's facilities are in a clean, safe, and usable condition at all times for employees and the general public. Custodial services such as vacuuming,trash removal,window washing,restroom cleaning, carpet cleaning, and floor stripping and sealing, are all on a regular schedule. Regular preventative maintenance services are also on a schedule, which include items such as painting, roof maintenance, pest control, emergency generator testing and upkeep, HVAC, and alarm servicing. Other maintenance repair services such as electrical and plumbing repairs are contractually provided on an as needed basis. The Facility Maintenance program monitors citywide facility expenses such as water, sewer, electricity and natural gas utilities, maintenance, and janitorial supplies. City departments are charged an allocated amount (internal service fee) to recognize the cost associated with the custodial and building maintenance to more fully account for operational expenses associated with providing these services. BUDGET HIGHLIGHTS Notable Budget Changes: • Contract services,supplies,and utilities increasing by a total of approximately$21,000 With the implementation of Internal Service Funds in the FY 2007/08 budget, the Facility Maintenance program incorporated staffing and expenses associated with facility custodial and maintenance services, and the revenues earned from charging back to the departments into one cost center program. With ten years of actual data,only minor revisions are necessary each fiscal year, and typically pertain to increasing contract services. For FY 2018/19, the janitorial contract increased by$10,000 to reflect higher wages to service providers,the Fire Alarm Maintenance costs increased with additional monitoring services,and gas,electricity,water and sewer utility expenses all increased with higher fees. Program expenditures include ongoing janitorial and facility supplies, utility expenses, and contract services for facility 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 Tier II EV Stations and one Fast Charge station in the City brought with them the need to fund anticipated maintenance costs. The lifespan of the stations are short however,therefore this funding will decrease to$2,000 in FY 2018/19 to reflect the replacement of the station heads in the next fiscal year rather than additional repair costs. 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 most 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FACILITY MAINTENANCE FUND FINANCIALS 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted S OURCE OF FUNDS Beginning Fund Balance Unassigned 199,869 288,697 391,087 474,976 529,653 590,834 Total Beginning Fund Balance $ 199,869 $ 288,697 $ 391,087 $ 474,976 $ 529,653 $ 590,834 Revenues Other Sources 7,299 6,439 9,424 - 5,759 - hitemal Service Charges 875,000 900,001 925,000 925,000 925,000 925,000 Total Revenues $ 882,299 $ 906,440 $ 934,424 $ 925,000 $ 930,759 $ 925,000 Operating Transfers In Transfers In - - - - - - Total Operating Transfers In $ - $ - $ - $ - $ - $ - TOTAL SOURCE OF FUNDS 1,082,168 191959136 1,325,511 1,399,976 1,460,412 1,515,834 USE OF FUNDS Expenditures Salaries and Benefits 458,354 415,894 432,494 397,339 395,415 432,095 Operating Expenditures Materials&Supplies 44,803 43,515 42,770 53,800 46,519 54,400 Fees&Charges 144,549 141,390 144,494 152,400 154,108 160,700 Consultants&Contracts 82,790 99,870 129,809 160,000 167,752 172,000 Meetings,Events,Training 800 - 8 1,000 - 1,000 Fixed Assets - - - - - - Intemal Service Charges 82,546 103,380 100.961 105,784 105,784 123,823 Total Expenditures $ 813,842 $ 804,049 $ 850,535 $ 870,323 $ 869,578 $ 944,018 Ending Fund Balance Unassigned 268,326 391,087 474,976 529,653 590,834 571,816 Total Ending Fund Balance $ 268,326 $ 391,087 $ 474,976 $ 529,653 $ 590,834 $ 571,816 TOTALUSEOFFUNDS $ 1,082,168 $ 1,195,136 $ 1,325,511 $ 1,399,976 $ 1,460,412 $ 1,515,834 FY 2018/19 WORKPLAN PRIORITIES Facility and Infrastructure Project Management-Facility staff will oversee planned facility improvement projects to ensure City facilities are clean, safe, and maintained according to best practices. Planned projects include a new stage in the multi-purpose room,a Community Development lobby remodel,Senior Center entrance remodel,and the Community Theater/Council Chamber building boiler replacement. Environmental Sustainability - Staff will continue ongoing environmentally-friendly and energy savings projects such as installing energy saving furnaces and HVAC units in City buildings, energy efficient appliances at the Community and Senior Center(oven and dishwasher) and Prospect Center(dishwasher), and maintain EV charging stations in the City. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FACILITY MAINTENANCE KEY SERVICES • Provide buildings that are clean,safe,and usable for the public and City employees • Follow environmentally friendly purchasing policies,sustainability,and green building practices • Maintain facilities on a regular schedule to provide efficient and cost effective maintenance FACILITY MAINTENANCE STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Recreation&Facilities Director 0.25 0.25 0.25 0.10 0.10 Recreation Manager - - - - - Recreation Supervisor Recreation Coordinator-Lead Recreation Coordinators Facility Coordinator Office Specialist IM - - - - - 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/H/M 1.60 0.80 0.80 0.80 0.80 TOTAL FTE's 3.65 2.85 2.85 2.70 2.70 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded Facility Attendents Recreation Leaders Graphic Design Assistant Recreation Intern Asst Recreation Coordinator TOTAL ANNUAL HOURS CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FACILITY MAINTENANCE PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Provide safe,functional,and attractive City buildings for the enjoyment of the public and to house the provision of City services. a. Percentage of surveyed visitors who agreed the 100% 100% 100% 1009/0 100% facilities are clean,comfortable,and safe: 2. Provide safe and functional, City buildings using environmentally sensitive and cost-effective practices. a. Quarterly preventative maintenance of all City HVAC 100% 1009/0 100% 100% 100% systems: b. Six-days per week cleaning of all City facilities 100% 1009/0 100% 100% 100% including emptying trash,vacuuming,mopping,and cleaning windows.etc.: ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of work orders completed: 3,400 3,560 3,600 3,500 3,500 2. Maintain AED units on a monthly basis: 10 10 10 10 10 3. Refinish wood floors annually. 4 4 4 4 4 4. Setup and takedown of Council Chamber dias: 48 48 42 48 41 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FACILITY REPLACEMENT FURNITURE, FIXTURES & EQUIPMENT OVERVIEW The Facility FFE Replacement Internal Service Fund (ISF) was added in FY 2015/16 in recognition that the replacement of facility components is ongoing,and should be treated similarly to how the City plans for Technology Equipment or Vehicle replacements,or even how private businesses depreciate furniture or equipment over the years or pay Triple Net charges in a commercial property rental. The use of a steady annual charge helps to smooth the irregular cost and timing of large facility equipment 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 flooring,windows,plumbing and electrical fixtures. BUDGET HIGHLIGHTS Notable Budget Changes: • FY 2018/19 scheduled replacement costs include$76,400 budgeted from program funds. Another$130,000 of asset replacements will be funded as CIP projects, and the Theater Ticket Surcharge CIP Funds will pay for another$23,000 of Theater asset replacements. The City's long-term replacement plan accumulates funding on an ongoing basis—meaning replacement costs are not fully funded at any point in time. Instead, the rolling funding schedule allows scheduled assets to be purchased as needed,with annual funding accumulated and held for the next round of replacement assets. Careful timing is required to ensure asset replacement costs are fully assessed over the life of the assets, and replacement purchases timed as funding becomes available. The annual funding charge-backs are set at$200,000,with the expectation that this level of funding will provide adequate resources to purchase and replace identified facility assets for many years. The long- term replacement plan is reassessed each year to include re-assessed replacement cost values, delays or expedited replacements,newly identified assets,or the addition of new assets. Replacement funding programmed to be utilized in FY 2018/19 includes items carried forward from the prior year: EV Station head replacements, the Public Works furnace, and possibly the CDD/PW flooring and the Civic Theater/Council Chamber boiler if not completed by year end. Items originally scheduled for replacement in this fiscal year include: the Warner Hutton House HVAC unit; one of the many Community Center's HVAC units; and the Council/Planning Commission's Dias chairs, CIP funding will replace an electrical panel and the stage in the Community Center. Theater Ticket Surcharge revenue will fund the replacement of dressing room lights and fans, and the backstage restroom flooring. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FACILITY REPLACEMENT FUND FINANCIALS 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted S OURCE OF FONDS Beginning Fund Balance Unassigned 339,222 498,369 498,369 420,814 Total Beginning FundBalance $ - $ - $ 339,222 $ 498,369 $ 498,369 $ 420,814 Revenues Other Sources - - - - hiternal Service Charges 200,000 200,000 200,000 200,000 200,000 Total Revenues $ - $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 Operating Transfers In Transfer In from General Fund - - - - - Transfer In from CIP 180,000 - Total Operating Transfers In $ - $ 180,000 $ - $ - $ - $ - TOTAL SOURCE OF FONDS $ - $ 380,000 $ 539,222 $ 698,369 $ 698,369 $ 620,814 USE OF FONDS Expenditures Operating Expenditures - - - - Fixed Assets 40,778 40,853 507,588 277,556 366,400 Total Expenditures $ - $ 40,778 $ 40,853 $ 507,588 $ 277,556 $ 366,400 Operating Transfers Transfer Out to General Fund - - - - - Total Operating Transfers $ - $ - $ - $ - $ - $ - Ending Fund Balance Unassigned 339,222 498,369 190,781 420,814 254,414 Total Ending Fund Balance $ - $ 339,222 $ 498,369 $ 190,781 $ 420,814 $ 254,414 TOTAL USE OF FONDS $ - $ 380,000 $ 539,222 $ 698,369 $ 698,369 $ 620,814 KEY SERVICES • Identify and track facility furniture,fixtures,and equipment • Accumulate and provide annual funding for asset replacements • Assess condition of furniture,fixtures,and equipment for proper replacement timing • Identify and procure best solution equipment CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FACILITY REPLACEMENT FY 2018/19 FFE REPLACEMENT SCHEDULE LOCATION/DEPT ASSET LIFESPAN EST. COST City Hall Entire Development Bldg Floors 25 $ 70,000 Engineering Gas Furnace 25 21,400 Civic Theater/Council Chambers Theater/Chambers Council Dias Chairs 20 15,000 Theater/Chambers Boiler 35 160,000 Community Center HVAC Unit#8 Roof 20 19,500 Warner Hutton House HVAC Unit Roof 20 25,800 Portables Pre-School Portable Floor 25 14,500 Citywide EV Stations(as needed) Bank Building Single Low Charge 4 5,100 3rd Street Single Low Charge 4 5,100 TOTAL FFE REPLACEMENT FUNDING: $ 336,400 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET FACILITY REPLACEMENT 0i AR 1956 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET :: �PUBLIC SAFETY SERVICEs DEPARTMENT DEPARTMENT OVERVIEW The Public Safety Department is comprised of two safety-oriented programs: the Public Safety Services Program, which provides for day-to-day law enforcement services; and the Emergency Preparedness Program which prepares the City for infrequent large-scale disaster and emergency occurrences. The assorted Public Safety functions are delivered through a number of external agencies and joint efforts. The City of Saratoga contracts for law enforcement services with the Santa Clara County Sheriff Office. Services include traffic,patrol,and general law enforcement,as well as ancillary programs to educate the community on crime prevention, traffic safety, and emergency response. Deputies and detectives dedicated to the cities of Saratoga, Cupertino,and the Town of Los Altos Hills are collectively known as the West Valley Division. The Sheriffs sub- station, with dedicated managerial and administrative support for the division, is located on the Cupertino/Saratoga border. The assigned Captain in charge represents the Chief of Police for each of the three cities. Animal control services, including licensing, animal control, and field and shelter services, are provided on contract by the City of San Jose Animal Care and Services Division(SJACS). Fire protection services are provided to Saratoga residents by Santa Clara County Fire District (SCCFD) as a separate tax-funded district. As part of the SCCFD's emergency oversight function,they also provides the cities with staff support for coordinating city-based emergency response services. Saratoga is a member of the Silicon Valley Regional Interoperability Authority(SVRIA). This local agency coalition task force has undertaken the mission to design and implement a comprehensive public safety radio communications system to improve countywide communication. In past years,the funding formula billed the cities directly. As of FY 2018/19, Saratoga's SVRIA charges will flows through the Sheriffs Office law enforcement contract as operational services migrate from a jurisdiction basis to a user fee basis. The Emergency Preparedness Program supports the preparation of both City and community emergency response efforts in the event of a significant earthquake, fire, or other natural or man-made disasters, and coordinates with various emergency services agencies and utilities to prepare residents for self-sufficiency and proper response to emergency events. 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 receives additional support from SCC Fire and SCC Office of Emergency Services unit through grants, staff oversight assistance,and Community Emergency Response Team(CERT)training courses. The CERT programs train the Saratoga community in Emergency Preparedness through the planning and supervision of drills and exercises. The City Council has identified support of basic Public Safety services as their number one service priority, and recognize that these external agencies provide the operational and managerial staffing necessary to carry out this function. City staff assignments are primarily focused on emergency preparation and cost-recovery planning efforts. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET W PUBLIC SAFETY SERVICES DEPARTMENT DEPARTMENT OBJECTIVES Council Strategic Goal Public Safety: Provide for a safe and secure community. Department Objectives • Preservation of life and property: Ensure effective enforcement of regulations, codes and law in order to maintain a safe and secure community • Crime Prevention: Build relationships and engage community participation in crime prevention awareness, implement crime prevention programs such as Neighborhood Watch, and utilize social media and other communication platforms to enhance public outreach • Emergency Preparedness: Prepare and maintain Emergency Operations Plans; develop both staff and the community's emergency awareness and readiness; and prepare for inter-agency/multi-agency coordination during emergencies through training and exercises BUDGET HIGHLIGHTS The Public Safety Services and Emergency Preparedness operations are primarily based on external agency support under a contract service arrangement with the Sheriff's Office,and a cooperative partnership with Santa Clara County Fire. In past years, Fire staff had provided hands on support,but in more recent years, City staff has taken on more and more of the emergency preparedness oversight. As a result, the City's Risk Manager's time and duties have increased to prepare for and address emergency response and cost recovery efforts. To better reflect staffing assignments, the Risk Manager's allocated time in the Emergency Preparedness program was increased from.05 to .30 FTE effective FY 2017/18. Departmental revenues are primarily related to Sheriff Service activities. This includes funding from Public Safety Tax, the annual SLESF/COPS Grant, Vehicle Abatement Fees, Vehicle Code Bail & Fines, Parking Citations, and False Alarm Fines. The Sheriff's contract is structured to bill the City monthly based on an annual estimate. At year- end, service costs are reconciled to determine actual costs. The Sheriff's Office issues the City a reimbursement if expenditures are less than the estimated annual fee. As this refund amount,if any,is undeterminable in advance,the City does not include a revenue projection in the budget. Additional Public Safety revenue is received from the San Jose Animal Control Services for fees collected from Saratoga residents for licensing,impound,quarantine,and boarding fees. Emergency Preparedness program revenues are limited to grant reimbursements, which in recent years was limited to FEMA's 50 percent reimbursable EMPG grants. Public Safety Service expenditures consist mainly of administrative fees and contract service charges for Sheriff Services, Cal-ID, and the San Jose Animal Services contract. The Sheriff Services expenditure is the only area of significant budget growth in this program from year to year. Emergency Preparedness expenditures are typically stable. However,the occasional grant will cause fluctuations in the expenditures. A significant increase in the Risk Manager's staffing allocation from .05 FTE to .30 FTE in FY 2017/18 notably increased the budget,and remains ongoing. The remainder of budgeted expenses are consistent. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET '1 PUBLIC SAFETY SERVICES DEPARTMENT GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovenunental Revenues 252,077 243,478 260,237 225,000 305,190 255,000 Charge for Services 21,011 18,838 25,956 17,500 20,687 20,000 Other Sources 187,508 169,418 169,716 130,500 130,372 115,500 TOTAL REVENUES $ 460,596 $ 431,735 $ 455,909 $ 373,000 $ 456,249 $ 390,500 EXPENDITURES Salaries and Benefits 12,853 13,137 13,354 85,318 84,831 89,778 Operating Expenditures Materials&Supplies 12,144 8,414 5,661 11,000 48,526 11,200 Fees&Charges 39,523 40,896 41,901 42,734 41,365 9,450 Consultants&Contract Svcs 4,789,188 5,157,244 5,375,092 5,517,918 5,517,918 5,879,322 Meetings,Events& Training 90 76 1,160 5,250 3,676 5,400 Total Operating Expenditures 4,840,946 5,206,630 5,423,815 5,576,902 5,611,485 5,905,372 Fined Assets - - - - - - Internal Service Charges 5,580 6,087 6,591 8,841 8,841 8,484 TOTAL EXPENDITURES $ 4,859,379 $ 5,2259854 $ 59443,759 $ 5,671,061 $ 5,705,157 $ 6,003,634 DEPARTMENTAL EXPENDITURES - BY PROGRAM 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND Public Safety Services $ 4,792,104 $ 5,161,618 $ 5,380,359 $ 5,523,918 $ 5,522,427 $ 5,885,822 Finergency Preparedness 67,275 64,236 63,400 147,143 182,730 117,812 GENERAL FUND PROGRAMS $ 4,859,379 $ 5,225,854 $ 5,443,759 $ 5,671,061 $ 5,705,157 $ 6,003,634 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC SAFETY SERVICES DEPARTMENT DEPARTMENTAL ORGANIZATION CHART Public Safety Emergency Preparedness SCC Sheriff's Office SCC Office of Emergency Services San Jose Animal Care &Services SCC Fire Department Saratoga CERT City of Sar to a Staff Recreation& Facilities Director .30 FTE Note—External agencies and community groups that support Public Safety program operations through assigned or volunteer staff are identified above for clarification of program resources. PUBLIC SAFETY DEPARTMENT STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Recreation&Facilities Director 0.05 0.05 0.05 0.30 0.30 TOTAL FTE's 0.05 0.05 0.05 0.30 0.30 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded TOTAL ANNUAL HOURS - - PUBLIC SAFETY DEPARTMENT STAFF - BY PROGRAM City Staff by Program 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Funded Public Safety - - - - - Emergency Preparedness 0.05 0.05 0.05 0.30 0.30 TOTALS 0.05 0.05 0.05 E 0.30 0.30 The Recreation&Facilities Department Director is assigned and accounted for in the above Public Safety Department Staff schedule,but is fully accounted for in the Recreation&Facilities Department for Total FTE Summary information. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC SAFETY PUBLIC SAFETY OVERVIEW Since the City's incorporation in 1956,the City has contracted for public safety services with the Santa Clara County Sheriff s Office rather than employ in-house police services. The City has found this option very satisfactory as the Sheriffs department provides a full range of services and competencies associated with a large police department without the full large-city expense. This is evidenced by the City being lauded in numerous"safest cities"lists every year. For example,in 2013,Saratoga was ranked as"the safest city in California"in 2014,the"121 safest city in the nation." The current contract with the Sheriffs Office provides basic patrol,traffic, and law enforcement services. Over the years,services have increased and decreased,based on need and funding availability. After a slowing of the economy in 2004,and the State's borrowing of City Property Taxes,traffic enforcement hours were reduced effective with the FY 2005/06 budget. The passage of AB 117 in late 2006 allowed a return of slightly more than 1% of the City's property tax revenues to the City, thereby alleviating some of the fiscal cutbacks. Council augmented the Sheriffs contract by adding a school resource officer and increasing patrol service hours. Subsequently,another 200 hours of Investigative hours were added in FY 2009/10. However,in FY 2011/12,due to the severe economic limitations from the recession,traffic enforcement was reduced by 1,492 patrol hours. After several years of economic growth,Council added 1,800 hours of traffic enforcement beginning in FY 2014/15. These additional hours focus on heavy traffic times and locations,during morning drop-off and afternoon pick-up at school locations. As a result of the additional traffic enforcement deputy,the number of moving violation citations increased in the school zones,leading to a slight uptick in revenues. The deputy also held several meetings with both school and city staff to promote traffic safety awareness that led to a significant decrease in property and injury collisions. FY 2016/17 revenue decreased with better awareness,and FY 2017/18 is expected to follow suit. The City also contracts with San Jose Animal Care and Services(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 HIGHLIGHTS Notable Budget Changes • The FY 2018/19 Sheriff Office services contract increased by$360,000 from the prior year • The$30,000 SVRIA contribution is now funded through the Sheriffs law enforcement contract General Fund revenue is the primary funding source for Public Safety, but the City also receives approximately $390,500 of external funding support from public safety related operational activities and state funding. The State's Supplemental Law Enforcement Services Fund(SLESF)provides the City with a$125,000 grant for the enhancement of public safety services. Under the Governor's FY 2011/12 State Budget, SLESF funding was initially eliminated, and then under a political agreement,was"permanently"reinstated through a swap in which the State took the City's VLF revenues in exchange. Another$115,000 will come from an allocated share of the State's Public Safety Sales Tax(Proposition 172). The City expects approximately$100,000 in Vehicle Code Bails and Fines,another$20,000 in San Jose Animal Control revenue, and $14,000 in Parking Citation revenue. False Alarm Fines have fallen significantly to approximately$1,500. Operational funding has decreased from prior years due to a number of factors. Vehicle Code Bail&Fines Revenue declined with higher administrative fees and reductions in citations; Council direction to increase the focus to property crimes has reassigned patrol deputies to burglary suppression and apprehension of suspects, thereby impacting the overall number of parking and moving violation citations. Budgeted False Alarm fine revenue decreased due to the change in the fine structure to allow an additional false alarm call as a warning prior to a fine being issued, and the first fine amount lowered to $50 from $100. The Animal Control agency revenues represent charges to Saratoga CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET M PUBLIC SAFETY residents for boarding,licenses,and fines. This revenue amount decreased with a decrease in services provided in FY 2017/18,therefore FY 2018/19 budgeted revenues reflect a lower level of revenue activity. The City's contract for Public Safety services with the Santa Clara County Sheriff s Office calls for annual increases based on the lesser of either compensation increases, or CPI plus 2% for each individual year, with the increase in Ca1PERS rates added on to this wage increase. In FY 2014/15,the cost of law enforcement services increased by $498,000 due to both added patrol hours and a retroactive and current year wage increases under a new Deputy Sheriff negotiated agreement. Sheriff services increased another $362,000 in FY 2015/16 due to negotiated wage realignments and cost of living increases. With the realignment completed,FY 2016/17's annual increase of$203,000 represented the cost of living factor. In FY 2017/18, the City's increase of$143,000 again represents the cost of living factor, but the restructuring of Ca1PERS unfunded liability lowered the pension cost factor as a result of the five-year UAL payment ramp-up contribution amounts. The lower annual payment charge will mean a higher total cost in the long term,and with the new actuarial change that lowers the discount rate factor, the annual payment amount will increase rapidly in the following six years until the discount rate phase-in to 7% is completed. If all assumptions hold steady,the pace of increases should lessen in the years following the completion of the ramp-up. 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(through June 30,2024) with an initial annual fee of$155,000 for the first three years. The contract allows for an increase every third year, based on a formula using the lesser of. either, 1) the total of the Urban Wages and Clerical Workers for the San Francisco-Oakland-San Jose CPI increases for each of the prior three years plus 1.5%per year;or, 2)the total of the rise in San Jose Animal Control Officers salary for the prior three years. The contract's fourth three year rate increase is effective July 1, 2016. The new annual rate effective for fiscal years 2016/17, 2017/18 and 2018/19 is set at $194,577. Budgeted Public Safety expenditures for ongoing administrative fees for parking tickets and jail costs, and funding for a community Academy comprise the remainder of the program expenditures. City staffing costs are not included in this program as all operational and managerial duties are performed either by Santa Clara County Sheriffs Office or City of San Jose Animal Care&Services Division staff. The City of Saratoga is limited to oversight and coordination functions only. Of note are a couple of Public Safety focused community programs that were implemented in FY 2016/17 to heighten the community's awareness of crime prevention. City Council is promoting the Neighborhood Watch program with $300 annual grants to encourage neighbors to bond together as a neighborhood group. The funding can be used for security cameras, block parties, or other tools to encourages neighbor to get to know each other, share contact information, and to immediately communicate with each other and the Sheriff if something looks suspicious. The Council also formed a Public Safety Task Force Committee to develop recommendations for enhancing public safety. The Committee recommends new initiatives and programs to the Council for consideration. The$300 Neighborhood Watch grants are funded through the Grant program and the Task Force Committee is funded in the Council and Commissions program. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC SAFETY GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues 252,057 243,478 260,237 225,000 260,273 255,000 Charge for Services 21,011 18,838 25,956 17,500 20,687 20,000 Other Sources 187,508 169,243 169,716 130,500 130,372 115,500 TOTAL REVENUES $ 460,576 $ 431,560 $ 455,909 $ 373,000 $ 411,332 $ 390,500 EXPENDTI'URES Salaries and Benefits - - - - - - Operating Expenditures Materials&Supplies - - - - - - Fees&Charges 2,915 4,373 5,267 6,000 4,509 6,500 Consultants&Contract Svcs 4,789,188 5,157,244 5,375,092 5,517,918 5,517,918 5,879,322 Meetings,Events&Training - - - - - - Total Operating Expenditures 4,792,104 5,161,618 5,380,359 5,523,918 5,522,427 5,885,822 Fined Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDrMIES $ 4,792,104 $ 5,161,618 $ 5,380,359 $ 5,523,918 $ 5,522,427 $ 59885,822 FY 2018/19 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 Sheriffs Office continues to support 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. Patrol Division - The Sheriffs Office West Valley Patrol Division has added a bicycle unit to patrol operations. Deputies assigned to bicycle patrol will be focusing their enforcement efforts primarily in our business districts. Our goals include maintaining a visible presence in busy shopping areas as well as building a stronger working relationship with our business partners. K-9 Unit- The West Valley Patrol Division has also added a K-9 to our operations. The K-9 was identified as a positive tool in combating residential burglaries as K-9's are an excellent tool frequently used to track wanted people. K-9s have also been proven to reduce injuries to deputies. School Resource Officer- School Resource Officers are active at the schools, acting as mentors to students, and conducting numerous presentations and drills with students, faculty and parents on topics including active shooter protocol,stranger danger,internet and digital media safety,bullying and suicide awareness,among others. Community Academies - The annual teen academy provides high school students with a new perspective of law enforcement, raising their awareness of issues that may impact them currently and in their future. A newly formed adult academy will also be facilitated with both programs calling upon several members of the Sheriffs Office to facilitate instruction in the areas of basic crime,criminal investigations,narcotics,and traffic investigations. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' PUBLIC SAFETY Public Safety Task Force — The five member ad hoc Public Safety Task Force develops recommendations for enhancing public safety for the Council to consider. New programs or initiatives include safety tip postcards, informational brochures,a Neighborhood Watch/CERT gathering,and establishing a Saratoga Public Safety fair,. KEY SERVICES • Law enforcement services include: traffic management; patrol and code enforcement; and response to calls for service and traffic incidents • Public education and participation in community,school,and neighborhood groups • Crime prevention, deputy response, investigation, resolution of criminal cases, and subsequent participation in the prosecution of offenders • Records management functions including processing deputy reports and citations, criminal and traffic warrants, and fingerprinting services • Coordination of Emergency Response activities with SCC Fire District and City staff PUBLIC SAFETY DEPARTMENT STAFF City Staff 2014/1S 201S/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Recreation&Facilities Director TOTAL FTE's - - - Temporary Staff 2014/1S 201S/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded TOTAL ANNUAL HOURS CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET PUBLIC SAFETY PERFORMANCE OBJECTIVES & MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. For effective protection of life and property,ensure a safe and secure community through diligent enforcement of regulations,codes and law. a. Priority I calls (serious emergency and public hazard): 31 40 40 25 34 b. Priority It calls (immediate response,but non- 4,374 3,199 3,061 4,620 3,814 emergency): c. Priority III calls (non-emergency): 3,385 2,482 2,385 3,393 2,911 2. Provide Public Safety service response in a timely, professional manner. Meet or exceed service goals. a. Average response to Priority I calls for service: 4.21 min 5.11 min 4.41 min 4.82 min 4.64 min b. Average response to Priority II calls for service: 7.27 min 7.00 min 8.12 min 7.02 min 7.35 min c. Average response to Priority III calls for service: 11.9 min 11.56 min 14.37 min 13.36 min 12.80 min 3. Promote Crime Prevention awareness and educate community in the protection of their neighborhood and a. Prepare and provide city staff with weekly reports of 100% 100% 100% 100% 1009/0 crime activity in the city: b. Provide community with crime prevention tips and 100% 100% 100% 100% 100% weekly reports on city website: c. Educate residents through participation in community 20 20 56 38 38 events and Neighborhood Watch meetings: 4. Ensure Sheriff's Office responsiveness to community needs by documenting and providing response turnaround time to responsible parties. 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 7 days 7 days 7 days 7 days 7 days companies: 5. Develop Sheriffs Office Emergency Preparedness to provide public safety leadership in the event of emergency a. Number of Emergency Operation Plan trainings,drills, 1 1 2 12 4 or activies to enhance Emergency Preparedness skills: ACTIVITY & WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Radio calls for service received in the city. 10,150 10,320 10,924 11,881 10,819 2. Total number of crime reports taken: 1,023 1,052 1,131 731 984 3. Total number of collision reports taken: 212 211 200 216 210 4. Total number of cases assigned to Detectives: 2,110 2,112 2,090 947 1,815 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' PUBLIC SAFETY 0i S A Rq�.oC c� y 1956 �'g41FpRN�P CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' EMERGENCY PREPAREDNESS EMERGENCY PREPAREDNESS OVERVIEW The City of Saratoga is responsible for coordinating emergency response and recovery efforts in the event of a significant earthquake,fire,or other natural or man-made disaster. To prepare for this responsibility,City staff work in conjunction with the Sheriff's Office, Santa Clara County Fire Department(SCCFD), and the Santa Clara Office of Emergency Services (OES) 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 assist in the development of 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 (typically in September or October)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 HIGHLIGHTS Notable Budget Changes • The annual $34,000 Silicon Valley Interoperability Authority (SVRIA) annual membership charge was eliminated from this program effective FY 2018/19 as the service was implemented and the user cost is now absorbed into the Santa Clara County Sheriff's Office budget. Saratoga's usage fee is now embedded in the Law Enforcement Contract cost and paid for in the Public Safety budget. While the Emergency Preparedness program's operational expenses are typically funded by the General Fund, occasionally grants become available to help fund the purchase of additional resources. In FY 2013/14 the program was supplemented with a 50%reimbursable FEMA grant administrated by the County through the State's Emergency Management Agency. And in FY 2017/18 the County administered another 50% reimbursable Hazard Mitigation Performance Grant of about$57,000 for the purchase of a new CERT trailer and supplies,and for new laptops for the Emergency Operations Center(EOC). With the exception of a shift in the $34,000 SVRIA member fee to the Public Safety program in FY 2018/19, the Emergency Operations program's expenditures are limited and fairly stable. The majority of the expenses is for the .30 FTE allocation of the Risk Manager's staff time spent on the development and implementation of emergency preparedness activities. The Risk Manager also conducts about six(6)FEMA trainings for staff each fiscal year. In the event of a destructive disaster, this effort will prove to be an invaluable foundation for the City's emergency response cost recovery. For instance, in FY 2017/18, the City received a Public Assistance reimbursement of approximately$110,000 from CalOES (through FEMA) for damages and debris removal as a result of the January and February 2017 storms Additional operational costs for emergency preparedness support include funding for EOC telephone lines to be restored on a priority basis in the event of a disaster or emergency situation,and a satellite telephone communication service to sustain external communications if phone or cable lines or cell services are inoperable. Additional funding is available for emergency preparedness supplies, Records Emergency Action Plan (REAP) program supplies, and meeting costs associated with the Community Emergency Response Team(CERT)volunteer training program. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET EMERGENCY PREPAREDNESS GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - Intergovernmental Revenues 20 44,917 Fees,Licenses and Permits - Charge for Services - Other Sources - 175 - TOTAL REVENUES $ 20 $ 175 $ - $ - $ 44,917 $ - EXPENDITURES Salaries and Benefits 12,853 13,137 13,354 85,318 84,831 89,778 Operating Expenditures Materials&Supplies 12,144 8,414 5,661 11,000 48,526 11,200 Fees&Charges 36,608 36,522 36,634 36,734 36,856 2,950 Consultant&Contract Svcs - - - - - - Meetings,Events&Training 90 76 1,160 5,250 3,676 5,400 Total Operating Expenditures 48,842 45,012 43,456 52,984 89,058 19,550 Fined Assets - - - - - - hitemal Service Charges 5,580 6,087 6,591 8,841 8,841 8,484 TOTAL EXPENDITURES $ 67,275 $ 64,236 $ 63,400 $ 147,143 $ 182,730 $ 117,812 FY 2018/19 WORKPLAN PRIORITIES Emergency Operations Center-Emergency Operations planning in the City continues to evolve and improve. The primary Emergency Operation Center(EOC)relocated from the Saratoga Fire Department building in the Village to the City Hall Administrative Conference Room, and continues to be refined. In the event of a declared emergency, staff will now report to the"new"site and use the Fire Station as a backup EOC. Emergency Operations Plan-The Emergency Operations Plan is comprised of general procedures for disaster and emergency response, and individual topic specific plan annexes. This Plan is scheduled for update in FY 2018/19. Plan Annexes to be developed or updated in the future include a Spontaneous Volunteer Plan and a Donations Management Plan. Emergency Operation Training-Training will focus on enhancing EOC staff capabilities as identified by need based on the outcome of the After Action Report(AAR) and Improvement Plan(IP)by the Santa Clara County Office of Emergency Services. Trainings will include FEMA classes, EOC Operations, and the Common Operating Procedures. A tabletop exercise,followed by a drill will be conducted at the EOC next year. Cost Recovery Preparedness- Staff will continue to prepare photo-documentation and fixed asset inventories for each City facility and their amenities to help ensure accurate cost recovery in the event of a disaster. Buildings and facilities are assessed annually to maintain current insurance value. Emergency policies, practices, and operational services are in development to better prepare the city for reimbursable operational activities. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 11 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 grants as available • Oversee Community Emergency Response Team • Develop and implement disaster event preparation practices for proper cost recovery documentation purposes EMERGENCY PREPAREDNESS STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Recreation&Facilities Director 0.05 0.05 0.05 0.30 0.30 TOTAL FTE's 0.05 0.05 0.05 0.30 0.30 Temporary Staff 2014/15 2015/16 2016/17 2017/18 2018/19 ANNUAL HOURS Funded Funded Funded Funded Funded TOTAL ANNUAL HOURS CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 EMERGENCY PREPAREDNESS PERFORMANCE OBJECTIVES AND MEASURES 2014/1S 201S/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Develop emergency readiness of City staff and community members through disaster training and exercise programs. a. CERT Training Courses available to community Yes Yes Yes Yes Yes members: b. Coordinate community outreach to heighten Yes Yes Yes Yes Yes awareness of emergency preparedness programs c. Prepare emergency preparedness and public Yes Yes Yes Yes Yes education materials: d. Coordinate training of City Staff in personal Yes Yes Yes Yes Yes preparedness and EOC functions: 2. Maintain the City's Emergency Operations Center in a state of readiness. a. EOC radios,emergency telephones,and computers Yes Yes Yes Yes Yes available and periodically tested to ensure emergency communication needs: b. Prepare,test,and revise emergency response and Yes Yes Yes Yes Yes recovery policies,plans,and procedures: 3. Maintain effective liaisons with local,state,and national emergency management organizations. a. Participates in and/or maintains communication with Yes Yes Yes Yes Yes local, state,or national emergency preparedness organizations: b. Remain current on technology and emergency Yes Yes Yes Yes Yes management trends: 4. Ensure inter-agency/multi-agency coordination and communication for disaster planning and responses. a. Inter-agency technology and emergency equipment Yes Yes Yes Yes Yes tested and maintained: b. Staff attends emergency management meetings and Yes Yes Yes Yes Yes training programs: ACTIVITY AND WORKLOAD HIGHLIGHTS + 2014/1S 201S/16 2016/17 2017/18 2018/19 ■ Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of annual community disaster training exercises: 3 2 3 1 1 2. Number of annual disaster training exercises for City 1 1 2 2 3 staff: 3. Number of CERT training courses offered per year: 4 4 4 4 8 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 DEPARTMENT OVERVIEW The Non-Departmental Section is a collection of programs that are independent of department-based service and support functions. This collection includes the General Administration program,Legal Services, Community Grants and Events funding programs, Emergency Operations Claims/Reimbursement program, the Risk Management/Liability and Workers Compensation Insurance programs,the West Valley Clean Water Program Trust Fund,and the General Obligation(GO)Bond Debt Service Fund. The Non-Departmental General Administration program section accounts for non-operational receipts (such as tax revenues, and interest), and non-program specific charges, (such as retiree and unemployment expenses, assessment taxes, and sales tax audit recovery fees). There are some general citywide expenses (insurance, contractual legal services,grant funding to outside agencies,and debt service funding)that are grouped into their own specific programs within the Non-Departmental section. BUDGET HIGHLIGHTS The majority of City revenues are tax-based receipts. Property Tax, Sales Tax, Transient Occupancy Tax,Business License Tax,Franchise Fees,and Vehicle License Fees,are accounted for within the General Administration Program, along with several other miscellaneous revenues,as these receipts represent allocations to the City that are independent of departmental functions. Similarly, expenses in this program are general expenses that are independent of departmental services, such as retiree insurance premiums, unemployment payments, audit recovery fees, and non- exempt assessment taxes. The Legal Services program represents attorney time and expenses from external firms for citywide and general services. Community Grants and Community Events are funding programs for city allocations to external agencies and non-profit groups. The Emergency Operations Claims/Reimbursement program is utilized for any disaster recovery expenditures and their related reimbursements from FEMA, State,and local agencies. 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—total debt payments will be paid over the remaining twenty years,however the refunding allowed Saratoga taxpayers to buy down a portion of the principal and take advantage of lower interest rates,thereby lowering annual payments and saving almost$2.7 million dollars over the next twenty years. With this refunding,the 2001 bond was retired,and a 2011 bond was established in its place. A new conduit-financing bond on behalf of the Arrowhead Water Cooperative Community Facilities District is expected to be issued in FY 2018/19. If issued,the bond's revenue and expenditure budget will be added through a budget adjustment. As the Non-Departmental Section represents a collection of unrelated programs,notable budget impacts are discussed in the separate program sections. The following schedule shows Total and General Fund Revenues and Expenditures. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET NON-DEPARTMENTAL GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actual Adjusted Actuals Adopted REVENUES Taxes 14,596,799 15,456,736 16,216,896 16,245,800 17,214,706 17,444,900 Intergovernmental Revenues 121,925 87,492 113,187 5,000 25,633 22,500 Fees,Licenses and Permits - 775 - - 15 - Charge for Services 20 - 10 - 120 - Interest Income 45,229 79,341 102,787 147,500 270,929 254,500 Rental Income 94,392 84,508 64,505 70,002 58,431 60,181 Other Sources 147,576 191,119 139,270 131,877 157,529 132,122 TOTALREVENUES $ 15,005,940 $ 15,899,970 $ 16,636,655 $ 16,600,179 $ 17,727,363 $ 17,914,203 Operating Transfers In - 267,918 55,384 32,000 442,198 - TOTAL REVINUE&TRANS FERS $ 15,005,940 $ 16,167,888 $ 16,6929038 $ 16,632,179 $ 18,169,561 $ 17,914,203 EXPENDITURES Salaries and Benefits 3,320,628 570,813 533,794 862,215 791,511 1,203,400 Operating Expenditures Materials&Supplies 21,155 16,233 49,626 78,050 11,260 78,050 Fees&Charges 20,588 3,550 3,062 10,325 4,371 10,325 Consultant&Contract Sery 300,663 346,578 521,943 347,500 327,913 372,500 Meetings,Events,Training 6,476 6,090 19,464 32,500 21,910 37,500 Community Grants&Events 162,516 202,525 222,127 252,751 233,336 285,429 Operating Grant Expenditures - 34,762 - Total Operating Expenditures 511,398 609,738 816,222 721,126 598,790 783,804 Fixed Assets - - - - - - Internal Service Charges 402,004 552,348 565,689 568,189 568,189 595,950 TOTAL EXPENDITURES $ 4,234,030 $ 1,732,899 $ 1,915,706 $ 2,151,530 $ 1,958,490 $ 2,583,153 Operating Transfers Out 1,666,098 2,017,656 1,620,648 1,872,909 1,872,909 1,270,000 TOTAL EXP&TRANSFERS OUT $ 5,900,128 $ 3,750,555 $ 3,536,354 $ 4,024,439 $ 3,831,399 $ 3,853,153 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET E NON-DEPARTMENTAL DEPARTMENTAL EXPENDITURES - BY FUND/PROGRAM 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actual Adjusted Actuals Adopted GENERALFUND General Administration 3,783,847 1,205,042 1,180,347 1,565,979 1,400,400 1,934,925 Legal Services 287,667 325,331 412,970 332,800 324,755 362,800 Community Grants 135,061 147,755 152,772 148,051 144,226 169,729 Community Events 27,455 54,770 69,356 104,700 89,110 115,700 Emergency Operations - - 100,261 - - - TOTAL GENERAL FUND $ 4,234,030 $ 1,732,899 $ 1,915,706 $ 2,151,530 $ 1,958,490 $ 2,5839153 INTERNAL SERVICES FUNDS Risk Management 391,344 258,585 264,706 498,685 310,160 570,100 Workers Compensation 184,683 195,124 190,303 192,765 182,611 225,488 TOTAL INTERNAL SERVICES $ 576,027 $ 453,708 $ 455,008 $ 691,450 $ 492,771 $ 795,589 DEBT SERVICE FUNDS General Obligation Bond 889,960 885,010 847,885 847,310 846,735 841,535 TOTAL DEBT SERVICE FUNDS $ 889,960 $ 885,010 $ 847,885 $ 847,310 $ 846,735 $ 841,535 TRUST FUNDS West Valley Clean Water Pgn JPA - - - - - 995,000 TOTALTRUSTFUNDS $ - $ - $ - $ - $ - $ 995,000 TOTAL DEPT EXPENDITURES $ 5,700,017 $ 3,071,617 $ 3,218,600 $ 3,690,290 $ 3,297,997 $ 5,215,277 TRANSFERS OUT General Fund 1,666,098 2,017,656 1,620,648 1,872,909 1,872,909 1,270,000 TOTAL TRANSFERS OUT $ 1,666,098 $ 2,017,656 $ 19620,648 $ 1,872,909 $ 1,872,909 $ 19270,000 TOTAL EXP&TRANSFERS OUT $ 7,366,115 $ 5,089,273 $ 49839,248 $ 5,563,199 $ 5,170,906 $ 69485,277 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 0 NON-DEPARTMENTAL DEPARTMENTAL ORGANIZATION CHART Risk Nana ement Workers Com ensation Recreation& Human Resources Facilities Director Manager .30 FTE .10 FTE Human Resources Technician .10 FTE Note-A limited amount of City staff is assigned to Risk Management and Workers Compensation programs for oversight. A variety of contract service firms provide legal, insurance,fiscal, and other administrative support in the assorted Non-Departmental programs. NON-DEPARTMENTAL STAFF City staff Full Time Equivalents(FTE) 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Recreation&Facilities Director 0.30 0.30 0.30 0.30 0.30 Human Resources Manager 0.10 0.10 0.10 0.10 0.10 Human Resources Technician 0.10 0.10 0.10 0.10 0.10 TOTAL FTE's 0.50 0.50 0.50 0.50 0.50 NON-DEPARTMENTAL STAFF - BY PROGRAM City Staff by Program 2014/15 2015/16 2016/17 2017/18 2018/19 Funded Funded Funded Funded Funded Workers Compensation 0.20 0.20 0.20 0.20 0.20 Risk Management 0.30 0.30 0.30 0.30 0.30 TOTALS 030 0.50 030 0.So 0.So Non-Departmental staff schedules include City staff assigned to the Non-Departmental Internal Service Fund programs. The staff members accounted for here reflect funding allocation,but as they are assigned to other departments,the positions are accounted for within the assigned department for the Financial Summaries'Total Staffing schedules. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET GENERALADMINISTRATION GENERAL ADMINISTRATION OVERVIEW The General Administration program represents revenues and expenditures that are generated as a result of being a governmental entity rather than from departmental operations. Tax Revenues,Intergovernmental Revenues,Interest, and Rental Income are the primary non-service based revenue sources for the City, and account for approximately 70% of the City's Total General Fund Operating Revenues each year. General Administration expenditures are minimal in comparison,as program expenditures are limited to funding citywide general expenses and internal service charges for general use areas or non-departmental functions. BUDGET HIGHLIGHTS The General Administration's Property Tax revenue continues to define the economic rebound which began in the spring of 2012. Over the last five years,annual revenue increases have ranged between 6.2 and 9.5%,bringing annual General Fund property tax receipts$4 million higher. Long-term Saratoga homeowners continue to see their property values increase. Many have been selling their houses over the last five years, thereby increasing the City's total assessed valuation base, and substantially increasing secured and in-lieu property tax revenue, as well as generating record high transfer tax revenues. And with the strong economy, home prices are expected to hold steady into the near future. While the rapid escalation of sales prices have priced many out of the market, and forecasters continue to claim sales will slow to a more tepid pace, we have not yet seen evidence that this is occurring. Logic and past history guide us to know that this is an inevitable event,so As a result,property tax revenues are projected to increase at a slower 3.5%pace,with the addition of the fourth year of the TEA increase. On the other hand, Sales Tax Revenue decreased by about 10%in FY 2017/18 due to the loss of several of the City's large retailers in the last couple of years. The City's Sales Tax auditors believe revenues will hold steady at this lower baseline,with slow inflationary growth for a least the next couple of years. We may see some upward movement in our revenue if any of several legislative changes regarding broader taxing application and online sales come to fruition. However,these legislative changes are less than likely to pass,and would certainly not be programed into our revenue stream until a change was actually effective. Saratoga is somewhat protected from further significant sales tax decreases due to its limited retail makeup and that a large portion of Saratoga's sales tax is derived from restaurants and gas station. These commodities are by nature, local-based and cannot be purchased on-line. The FY 2018/19 budget is based on the prior year's new baseline without growth. Business License Tax revenues associated with licensing a business are expected to remain flat, whereas the supplemental license tax that is based on building construction permits has shown a marked increase in the last year. The home remodeling renaissance in conjunction with housing turnover has exceeded budgeted expectations. In conformity with the current trends,but mindful of the potential volatility in this revenue,FY 2018/19 is budgeted at a slightly lower than current year expected amount. Transient Occupancy Tax(TOT)receipts,considered a leading indicator of economic strength,remains strong. This indicates that the economy is still healthy. The City's TOT began to show improvement in late FY 2011/12 as we pulled out of the recession and has remained strong ever since. Budgeted revenues will reflect slightly lower than FY 2017/18 expected receipt levels as a conservative measure. Franchise Fee revenues mostly came in stronger than budget in FY 2017/18: Gas utility Franchise Fees increased about 20%,Electric fees just above 1%. Water utility Franchise Fees came in I I%over budget,and are expected to continue growing. Solid Waste was 5%higher than the prior year,however Cable Franchise Fees are expected to be flat. Next year's budgeted revenues reflect these same trends. On an optimistic note,interest income continues to rise at a quickening pace. Rates are still low,meaning the dollar amount gains are minimal,but they are growing. The City currently limits investments to LAIF,which until this last CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 0 GENERAL ADMINISTRATION year wallowed in the lowest rates of its 35-year history: lingering below 1% for almost eight years until finally creeping up above one percent in July of 2017. In March 2014,the City's representative Solid Waste Authority and West Valley Collection&Recycling(WVC&R) signed a new 10 year agreement effective through February 2024.As part of the new agreement,WVC&R will make annual payments of$450,000 to the Authority for the right to hold the exclusive franchise agreement. The annual fee is dispersed to member cities based on population,with Saratoga receiving just over$130,000 per year. This funding is allocated to General Administration for general-purpose use;it is not restricted for solid waste support. As the General Administration program represents non-service functions, there are no assigned staff. Hence, the workplan does not have scheduled priorities or key services. Budgeted appropriations represent general expenses, such as retiree medical insurance administration fees, unemployment insurance charges, funding for employee termination and leave payouts, Sales Tax and Business License audit finder's fees, and several Internal Services charges which account for general public usage of the building maintenance 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 GENERAL ADMINISTRATION GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actual Adjusted Actuals Adopted REVENUES Taxes Property Tar 10,436,621 11,301,176 12,003,942 12,110,800 12,963,531 13,189,900 Sales Tax 1,224,427 1,189,398 1,185,035 1,150,000 1,124,647 1,050,000 Transient Occupancy Tax 309,618 319,109 343,618 315,000 389,037 350,000 Business License Tax 357,597 365,710 343,442 330,000 377,106 375,000 Other Taxes 199,056 212,942 169,989 175,000 194,220 205,000 Franchise Tax 2,069,479 2,068,401 2,170,870 2,165,000 2,166,165 2,275,000 Intergovernmental Revenues 121,925 87,492 19,192 5,000 23,768 22,500 Fees,Licenses and Permits - 775 - - 15 - Interest Income 45,229 79,341 102,787 147,500 270,929 254,500 Rental Income 94,392 84,508 64,505 70,002 58,431 60,181 Other Sources 142,576 188,613 139,270 131,877 157,529 132,122 TOTALREVENUFS $ 15,000,920 $ 15,897,465 $ 16,542,650 $ 16,600,179 $ 17,7259378 $ 17,914,203 Operating Transfers In - 267,918 55,384 32,000 442,198 - TOTAL REV&TRANSFERS IN $ 15,0009920 $ 16,165,382 $ 16,598,033 $ 16,632,179 $ 18,167,576 $ 17,914,203 EXPENDITURES Salaries and Benefits 3,320,628 570,813 528,100 862,215 791,511 1,203,400 Operating Expenditures Materials&Supplies 20,936 16,051 49,208 77,750 10,995 77,750 Fees&Charges 20,534 3,550 3,062 10,325 4,371 10,325 Consultant&Contract Sery 15,233 21,429 14,825 15,000 3,423 10,000 Meetings,Events,Training 5,420 6,090 19,464 32,500 21,910 37,500 Operating Grant Expenditures - 34,762 - - Total Operating Expenditures 62,123 81,881 86,559 135,575 40,699 135,575 Fixed Assets - - - - - - Internal Service Charges 401,095 552,348 565,689 568,189 568,189 595,950 TOTAL EXPENDITURES $ 3,783,847 $ 1,205,042 $ 1,180,347 $ 1,565,979 $ 1,400,400 $ 1,934,925 Operating Transfers Out 1,666,098 2,017,656 1,620,648 1,872,909 1,872,909 1,270,000 TOTAL EXP&TRANSFERS OUT S 5,449,945 $ 3,222,698 $ 2,800,995 $ 3,438,888 $ 3,273,309 $ 3,204,925 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET a GENERAL ADMINISTRATION 0i S A Rq�.oC 1956 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET LEGAL SERVICES LEGAL SERVICES OVERVIEW The City of Saratoga contracts with the firm Shute, Mihaly & Weinberger LLP (Shute Mihaly) to provide City Attorney services, advice,and representation on legal matters to ensure City actions and activities are legally sound. Shute Mihaly in turn,utilizes Wittwer&Parkins LLP firm for land use/development attorney services on an as-needed basis. The City Attorney also oversees the use of Mouser Law Firm legal services for employment law, and occasionally other legal firms for specialized services. The City Attorney manages the City's pursuit or defense in litigation matters as directed by the City Council, supervises litigation costs,and provides the City with a monthly status report of all outstanding litigation,case updates, and potential lawsuits. In addition,the City Attorney:reviews all proposed ordinances and resolutions requiring City Council action to ensure proper format and content; reviews staff reports for reasoned and sound commentary; identifies policy options and alternatives; and provides direction, recommendations, and appropriate summaries consistent with Council requirements. Additional contract city attorney services include: review and recommendations on legislative issues; recommendations on environmental review requirements and preparation of environmental review documents;review of bid requests,vendor contract documents,purchase and sale agreements, code enforcement matters, and the preparation and/or review of contractual agreements with other agencies. Employment Law services include policy development, human resources oversight, and negotiation services as needed. The City Attorney attends the bi-monthly City Council meetings, and special City Council sessions as needed. Overall, Legal Services provides support to the City Council's Strategic Goals for a transparent and ethical City government,in conformance with and abiding by the rule of law. BUDGET HIGHLIGHTS Notable Budget Changes: • Increases in legal review services budget The legal program does not typically include budgeted revenues;however services reimbursements may occur during the course of the year if the City provides legal representation, such as in development lawsuits. Additionally, applicants who have development applications in process under the deposit fee development process are required to reimburse the City for billed legal services if the project utilizes attorney time for appeals in the Planning Commission or City Council meetings. Reimbursements would also result from applicants requesting research and information from the City, or from legal services related to environmental reviews. As these occurrences are not common, revenues are not anticipated nor budgeted. Budgeted expenditures are primarily comprised of regular on-going City Attorney services, with some contingency funding based on the City Attorney's estimate of outstanding and future litigation. In recent years, a steady base of $300,000 has been budgeted for general legal expenditures and another$20,000 to $25,000 for employment related legal services as the `normal' year budget amount. With legal reviews trending higher, the budgeted amount was increased to$325,000 in FY 2018/19. If circumstances indicate additional funding is needed during the fiscal year,a budget adjustment would be brought to Council. Employment law services were moved into the Legal Service program in FY 2013/14 to better assign budget responsibility and oversight for legal services to the City Attorney, and to align all attorney fees within the Legal Services program. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET LEGAL SERVICES GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actual Adjusted Actuals Adopted REVENUES Charge for Services 20 10 120 Other Sources - TOTALREVENUES 20 - 10 - 120 EXPENDITURES Op erating Expenditures Materials&Supplies 219 182 418 300 265 300 Fees&Charges 54 - - - - - Consultant&Contract Sery 285,430 325,149 412,552 332,500 324,490 362,500 Meetings&Training 1,056 - - - - - Total Operating Expenditures 286,758 325,331 412,970 332,800 324,755 362,800 Internal Service Charges 909 - - - - - TOTAL EXPENDITURES $ 287,667 $ 325,331 $ 412,970 $ 3329800 $ 324,755 $ 362,800 FY 2018/19 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. General Plan Update—Provide a legal review of General Plan Update efforts to ensure language and changes are compliant with legal requirements........ Public Works—Work with Public Works department staff on environmental review,regulatory compliance,contracts and real property matters for major public works projects such as Quito Road Bridges, 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET LEGAL SERVICES PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. 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. a.. Number of staff reports and resolutions drafted or 35 39 44 40 50 reviewed: b. Number of ordinances drafted or reviewed: 15 12 12 12 12 2. Ensure legal documents protect the City' interests and are in compliance with Federal,State,and City requirements. a. Number of agreements/contracts using standard 75 63 62 82 75 forms reviewed: b. Number of agreements/contracts using non-standard 15 14 15 16 15 forms prepared or reviewed: ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of City Council meetings or study sessions 23 17 22 22 22 attended: 2. Number of multi-agency agreements prepared: 5 8 7 5 G CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET COMMUNITYGRANTS COMMUNITY GRANTS OVERVIEW The Community Grants program consolidates the City's grant support to outside agencies into one program,thereby retaining an historical funding reference. The City allocates grant funding to local organizations to support the services these groups provide to the Saratoga community,including: the Saratoga Chamber of Commerce for business support; West Valley Community Services for housing and food services; Catholic Charities Ombudsmen to support the poor and vulnerable; and the Saratoga Area Senior Coordinating Council(SASCC) for operational support of the Senior Center. The City also contributes in-kind services,such as building space and utilities to the Saratoga Area Senior program as the Senior Center is located in the Saratoga Community Center facilities. This non-profit organization provides a variety of health services—such as Blood Pressure Checks, Podiatric Checks,Flu Shots, Vision Screening, Hearing Tests, and Senior Nutrition Programs,as well as social and support services—such as Tax Return Assistance,Fifty- Five Alive Driving Program, Ping-Pong,Karaoke, and other non-cost-recovery services the senior population finds valuable. Grant amounts listed reflect City funding provided to service groups and non-profit organizations. Non-monetary support, such as staff assistance,rental and permit waivers, sheriff services,and street sweeping provided to various community groups is not accounted for in the budget. BUDGET HIGHLIGHTS Notable Budget Changes: • $20,000 was added to fund a 'h time support staff person in the West Valley Community Services organization to provide dedicated assistance in Saratoga Non-Profit community support organizations are vital to the City of Saratoga's senior community and a welcome support to businesses and citizens in general. The City provides both in-kind and monetary funding to assist a number of these non-profit and volunteer based groups in Saratoga. SASCC receives in-kind funding(community center facility use,maintenance services,and other staff assistance)and monetary support to run the senior center for social groups,class instructions,and the adult day care program. SASCC does not generate sufficient fee based services from these vital senior services, so is dependent on City and CDBG funding support. The Council provides community service support grant funding to non-profit group programs that deliver crucial support to members of the Saratoga community who are most in need. The West Valley Community Services receives $8,000 annual for program support, and was awarded an additional $20,000 in FY 2018/19 to fund a part time staff person for dedicated Saratoga support. The Catholic Charities Ombudsmen receive $5,000 in support of their advocacy for residents in long-term care facilities. The United Way receives $2,000 in annual funding for the Call Center program. An additional$20,000 is set aside to support a Sr.Transportation funding program. Additional community grants include a $25,000 grant is awarded to the SCC FireSafe Council to provide fire protection services for Saratoga residents;the Chamber of Commerce receives more than$15,000 in annual funding to help in their support of Saratoga businesses; and another $10,000 is set aside to provide funding for various volunteer projects,such as faith-based groups and Eagle Scout nominees who undertake a City improvement project. The distribution of grant funding for FY 2018/19 and the four prior years is illustrated in the Grant Schedule on the following page. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET COMMUNITY GRANTS GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actual Adjusted Actuals Adopted REVENUES Other Sources - - - TOTALREVENUES $ $ $ - $ $ - $ EXPENDITURES Op erating Expenditures Materials&Supplies Fees&Charges Consultant&Contract Sery Meetings&Training Community Grants 135,061 147,755 152,772 148,051 144,226 169,729 Total Operating Expenditures 135,061 147,755 152,772 148,051 144,226 169,729 Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES $ 135,061 $ 147,755 $ 152,772 $ 148,051 $ 144,226 $ 169,729 5 YEAR BUDGET AWARD HISTORY 2014/15 2015/16 2016/17 2017/18 2018/19 Grants Grants Grants Grants Grants Community Services Support SASCC Service Support 21,000 21,000 21,000 21,000 21,000 SASCC Supplemental Support 18,540 19,096 19,669 20,259 21,493 Adult Care Support 22,000 22,000 22,000 22,000 22,000 KSAR C ommunity Ac c e s s Grant 29,200 25,540 35,743 - - Chamber of Commerce Annual Support 16,821 20,119 14,360 14,792 15,236 SCC FireSafe Council-Fuel Reduction Services 12,500 25,000 25,000 25,000 25,000 Volunteer Project Funding Requests - - - 7,175 10,000 West Valley Community Services 8,000 8,000 8,000 8,000 28,000 United Way 211 Funding 2,000 2,000 2,000 2,000 2,000 Catholic Charities Ombudsmen Funding 5,000 5,000 5,000 5,000 5,000 Sr.Transportation - - - 19,000 20,000 Total Community Services Support Grants 135,061 147,755 152,772 144,226 169,729 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET COMMUNITY EVENTS COMMUNITY EVENTS OVERVIEW The City of Saratoga recognizes the value of community events and their role in bringing residents together,building community, and establishing an identity for the City. To that end,the City Council established a Community Event Grant Program by which event organizers can seek funding to support community events in Saratoga. The Community Event program budget 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 summer festival to celebrate the historic Saratoga Village. The City also sponsors celebrations in honor of cultures, such as the Bollywood Dance and Mid-Autumn Festival;for music,such as Opera in the Park and Saratoga Community Band;as well as for City facility openings or groundbreakings to increase awareness of a new or improved community facility and publicly thank supporters and contributors. BUDGET HIGHLIGHTS Notable Budget Changes: • Street closure event grant funding increased by$15,000 for a possible second event • America in Bloom event not funded in FY 2018/19 • Public Safety Events funding added to promote the community's public safety participation For Fiscal Year 2018/19, the Council allocated $40,000 in the City's Community Event Grant program for use by community groups to hold Saratoga based events. These grants help pay for expenses associated with coordinating events, including City-related fees (i.e.,permits,park attendants,renting parks or facilities), security, entertainment, signage,event materials and food. Community sponsored events include: the ever-popular traditional Blossom Festival and Independence Day Celebrations that bring Saratogans together;the Shushan County Fair and Mid-Autumn Festival to celebrate cultures; and arts and entertainment events like Saratoga Community Band, Opera in the Park, and various Saratoga Village holiday celebrations. The Saratoga Area Senior Coordinating Council's Health and Wellness Expo and the American Cancer Society's Relay for Life events focus on promoting healthy lifestyles. A$20,000 grant is typically set aside to fund city costs related to a full-day closure of Big Basin Way for an event such as the Chamber of Commerce's Classic Car Show. Council has added another$15,000 of funding for a second event if a viable plan is presented. Additional funds pay for City-sponsored events, such as Arbor Day, Outdoor Movie Nights, and certain components of the Holiday Tree Lighting event. Other events are co-hosted, such as the Living Room Conversation event are put on by the City and the Ministerial Group. With the propulsion of the Neighborhood Watch program in FY 2016/17,Council decided to provide grants of$300 per neighborhood as an incentive for neighbors to have a block party or buy resources to promote Effective FY 2017/18, these grants are funded through this program. Public Safety event funding was added in FY 2018/19 to support Neighborhood Watch gathers,a Neighborhood Watch/CERT coordination event,and a public safety fair. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET COMMUNITY EVENTS GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actual Adjusted Actuals Adopted REVENUES Fees,Licenses and Permits - - - Other Sources 5,000 2,506 TOTALREVENUES $ 5,000 $ 2,506 $ - $ $ - $ EXPENDITURES Salaries and Benefits - - Operating Expenditures Community Grants&Events 27,455 54,770 69,356 104,700 89,110 115,700 Total Operating Expenditures 27,455 54,770 69,356 104,700 89,110 115,700 Internal Service Charges - - - - - - TOTAL EXPENDITURES $ 27,455 $ 54,770 $ 69,356 $ 104,700 $ 89,110 $ 115,700 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET COMMUNITY EVENTS EVENT FUNDING SCHEDULE 2014/15 2015/16 2016/17 2017/18 2018/19 Actuals Actuals Actuals Actuals Budgeted Chamber of Commerce Events Annual Village Festival - - - 8,000 8,000 Holiday Wine Stroll 3,100 3,998 4,168 - - Classic Car Show - 3,929 - Community Celebrations City Neighborhood Celebrations - 2,995 - - Montalvo Celebrations 2,000 - 3,911 2,280 1,352 Blossom Festival 4,127 4,484 4,290 5,000 5,000 Girl Scout Crafts -Blossom Festival - - - 160 312 Saratoga Community Band 600 720 750 1,000 1,000 Opera in the Park 800 1,750 2,778 2,480 1,456 Bollywood 1,200 522 - - Saratoga Grammar School Reunion - 1,000 Library Events (various) 2,800 - - Cultural-Chinese Autumn Festival - 320 350 343 Cultural-Hakone Matsuri 5,000 4,630 5,000 5,000 Cultural-Shushan County Fair - - 2,590 2,000 Cultural-Mosaic Saratoga - 2,080 Cultural-CA Holocaust Action&Awai - - - - 1,800 Healthy City Events SASCC Health Fair 3,600 3,970 3,298 4,180 5,000 Relay for Life Saratoga - - 4,630 2,580 - Holiday Celebrations Memorial Day Event(Banner) 900 1,000 1,000 872 1,000 Odd Fellows Easter Event - 347 600 540 500 Fourth of July Event 1,483 2,670 2,190 1,817 2,500 St.Paddy's Day - 428 620 - - Saratoga Village Dev Council Events - - - 971 3,500 Total Community Event Grants 20,610 33,133 33,215 37,813 40,500 City Sponsored Events Roadway Improvement Events - 219 - 52 500 Parks,Trails,Open Space Events 4,706 - 14 200 State of the City Event - 6,334 3,027 7,000 City Anniversary - - 6,374 - - Village Tree Lighting Event 1,694 986 2,572 1,250 3,000 Village Street Closure Event - 8,331 14,257 22,500 35,000 America in Bloom - - 2,952 - - Outdoor Movie Nights 4,865 7,353 3,338 4,968 5,000 Arbor Day Celebration 286 42 314 21 500 Living Room Conversations - - - 31 500 Neighborhood Watch Program Grants 19,433 18,000 Public Safety Events - - - 5,500 Total Annual Sponsored Events 6,845 21,637 36,140 51,297 75,200 Total Community Event Funding 37,850 54,770 69,356 89,110 115,700 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' COMMUNITY EVENTS 0i S A Rq�.oC 1956 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 EMERGENCY OPERATIONS EMERGENCY OPERATIONS OVERVIEW The City of Saratoga's operating budget plans for normal operations,using conservative estimates for revenues, and expenditure budgets that allow for minor contingencies. When unusual weather patterns or natural disasters occur that cause resources to be expended at unexpected levels in response, and those expenditures fall outside of normal operating budget resources, staff will bring the related expenditures to the Council both for their awareness, and to approve budget funding adjustment requests to address the unexpected needs. These unplanned expenditures are accounted for in the Emergency Operations budget program. Under extraordinary circumstances,Federal, State,and local governments may declare a State of Emergency. When these emergency declarations occur,Federal and State funding is made available to assist impacted agencies with the unexpected expenditures. The City may then submit claims to request reimbursement,per FEMA or State Office of Emergency Services guidelines. For transparency,both the emergency claim expenditures and emergency operations grant reimbursement revenues will be accounted for in this program. BUDGET HIGHLIGHTS Notable Budget Changes: • There are no budgeted revenues and expenditures in this program,only prior year revenues and expenses It is unusual for the City of Saratoga to experience significant emergency operation situations,therefore this program's funding is a reactionary response; proposed budgets are not prepared for the following fiscal year unless it is known the emergency occurrence will cross over fiscal years. For the storm damage emergency that occurred in February of 2017, expenses and revenues are recorded in FY 2016/17,with one follow-up revenue received in FY 2017/18. As a result,this program budget is limited to a financial schedule that accounts for the prior year emergency revenue and expenditure activities. Only a financial schedule is included for this program. Even though staff overtime expenditures are accounted for as an expense,along with contract services and other emergency expenditures,City staff is not assigned to this program, and there are no workplan priorities,key services,or performance measures to report on. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET EMERGENCY OPERATIONS GENERAL FUND REVENUES AND EXPENDITURES 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actual Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - 93,995 1,865 Fees,Licenses and Permits - - Charge for Services Other Sources - - TOTALREVENUES $ - $ $ 93,995 $ $ 1,865.00 $ - EXPENDITURES Salaries and Benefits - 5,695 - Op crating Exp enditures Materials&Supplies - - Fees&Charges - - Consultant&Contract Sery - 94,566 Total Operating Expenditures - 94,566 Fixed Assets - - TOTAL EXPENDITURES $ - $ - $ 100,261 $ - $ $ - CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET RiSK MANAGEMENT RISK MANAGEMENT OVERVIEW The City was a member of the Association of Bay Area Government(ABAG) Pooled Liability Assurance Network (PLAN), a self-insurance program pool since it was established in 1986. Following a merge with the Metropolitan Transportation Commission (MTC), ABAG eliminated the risk management pool oversight services to better align their charter of service. ABAG PLAN provided general liability, auto,property insurance, and risk management services to 28 cities within the Bay Area.Following the merger and elimination of ABAG PLAN, the 28 agency members joined together and formed a Joint Powers Authority(JPA)and contracted with Bickmore Risk Services for administrative support.Each member chooses a self-insured retention (SIR) ranging from $25,000 to $250,000, which is reflected in premium rates.The insurance pool pays claims up to a limit of$5 million. To extend this protection,the association purchases another$25 million of excess insurance coverage for a total of$30 million per occurrence limit. Coverage provides protection for Bodily Injury, Property Damage, Personal Injury, and Public Officials Errors and Omissions claims, and minimizes the City's exposure to losses as a result of City policy or actions. The City's annual premium allows for a self-coverage retention level of$25,000 per occurrence. The City continues to submit claim information to a third party administrator (TPA), York Insurance Services Group. York's staff follows up with other parties and insurance firms,acting as the City's insurance agent. In addition to insurance, PLAN JPA provides a variety of risk management services, including policy guidance to effectively identify,analyze,and minimize risks,guidance and training to promote best practices,and grant incentives for safety programs. BUDGET HIGHLIGHTS Notable Budget Changes: • $50,000 was budgeted for potential `Hit and Run' and/or`Uninsured' damage claim expenses The Risk Management/Liability Fund is an Internal Service Fund program that 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 PLAN JPA grant reimbursements and claim reimbursements. Program expenditures include the Risk Manager's staff time, insurance premiums, PLAN JPA grant expenses, and the City-paid portion of non-reimbursable claim expenses. A minimum of$50,000 is budgeted each year,however for FY 2018/19; $100,000 is budgeted due to a number of expected claim settlements. If not used,the funding rolls back into fund balance. A pass-through liability program for reimbursable claim expenses is included in a separate program that rolls up into this fund. As a cost saving measure,PLAN JPA 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.This year's grant funding will be used to update the City ADA Transition Plan and will not require matching funds. Training Grants are typically used for costs associated with Risk Management training and 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. 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET RISK MANAGEMENT FUND FINANCIALS 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actual Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 283,125 291,264 376,487 504,480 504,480 553,907 Total Beg Fund Balance $ 283,125 $ 291,264 $ 376,487 $ 504,480 $ 504,480 $ 553,907 Revenues Intergovernmental Revenues 2,500 10,549 2,450 10,450 1,171 11,362 Fees,Licenses and Pemuts - - - - 599 - Other Sources 21,982 8,258 40,249 50,000 7,816 50,000 Internal Service Charges 375,000 325,001 350,000 350,000 350,000 350,000 Total Revenues $ 399,482 $ 343,808 $ 392,699 $ 410,450 $ 3599587 $ 411,362 TOTAL SOURCE OF FUNDS $ 682,607 $ 635,072 $ 769,186 $ 914,930 $ 864,067 $ 965,269 US E OF FUNDS Expenditures Salaries and Benefits 77,558 78,817 80,122 85,318 84,831 89,778 Operating Expenditures Materials&Supplies 2,500 10,563 2,436 12,700 1,171 11,362 Fees&Charges 128,319 (7,608) 48,194 200,250 54,269 200,250 Consultant&Contract Svcs - - - - - Meetings&Training - - - - - - Insurance Premiums 182,465 176,380 133,537 200,000 169,473 265,014 Internal Service Charges 502 433 417 417 417 3,696 Total Expenditures $ 391,344 $ 258,585 $ 264,706 $ 498,685 $ 310,160 $ 570,100 Ending Fund Balance Unassigned 291,264 376,487 504,480 416,245 553,907 395,168 Total Ending Fund Balance $ 291,264 $ 376,487 $ 504,480 $ 416,245 $ 553,907 $ 395,168 TOTALUSEOFFUNDS $ 682,607 $ 635,072 $ 769,186 $ 914,930 $ 864,067 $ 965,269 FY 2018/19 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. PLAN JPA Grant Management - Utilize PLAN JPA program grants to attend public agency risk management training and implement best practice safety standards to improve citywide safety. Risk Management training includes: the Public Administration Risk Management Association [PARMA] conference; the California Joint Powers Association (CAJPA) conference, and; the Public Risk Management Association [PRIMA] conferences. Public Works staff participate in Playground Safety(NPSI)training. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET RISK MANAGEMENT KEY SERVICES • Facilitate implementation of risk management best practices to increase public and staff s safety,and reduce the City's liabilities • Facilitate claim processing and reimbursements for the City,in coordination with the staff,the City Manager,and the City Attorney RISK MANAGEMENT STAFF City staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TIME EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Recreation&Facilities Director 0.30 0.30 0.30 0.30 0.30 Human Resources Manager - - - - - Haman Resources Technician - - - - - TOTAL FTE's 0.30 0.30 0.30 0.30 0.30 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET RISK MANAGEMENT PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 ' Ac tuals Ac tuals Ac tuals Estimated Budget 1. Provide timely,comprehensive Risk Management services to the City to reduce liability and claims costs. a. Contracts reviewed for compliance with Liability 100% 100% 100% 100% 100% Insurance requirements within 48 hours of receipt: b. Liability Claims processed within 48 hours of receipt: 100% 100% 100% 100% 100% c. Conduct City-owned facility inspections on a 100% 100% 100% 1009/0 100% quarterly basis: ACTIVITY AND WORKLOAD HIGHLIGHTS 2014/15 2015/16 2016/17 2017/18 2018/19 Ac tuals Ac tuals Ac tuals Estimated Budget 1. Number of risk management annual goals established 10 9 7 9 9 and maintained: 2. Number of monthly inspections and reporting-- streets, 12 12 12 12 12 sidewalks,urban forest,parks,buildings,and equipment: 3. Number of Liability Claims received: 15 7 11 10 4 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET WORKERS COMPENSATION WORKERS COMPENSATION PROGRAM OVERVIEW The City's Workers Compensation Program provides insurance benefit coverage for employee work-related illnesses and/or injuries. The City has been a member of the Shared Risk Pool(SHARP)Joint Powers Association since January 1, 1989. SHARP is a self-funded public agency insurance pool providing workers compensation coverage for four public entities that are too small to self-insure independently(Cities of Saratoga and American Canyon,and the Towns of Ross and Los Altos Hills). SHARP is liable for City of Saratoga claims up to a per occurrence self-insurance retention(SIR)of$250,000. SHARP members jointly purchase excess insurance to cover claims exceeding the SIR through the Local Agency Workers' Compensation Excess(LAWCX)Joint Powers Authority. The Human Resources Division manages the workers compensation processes according to the California State Department of Industrial Relations(DIR)regulations,serves as the liaison between the City and SHARP's third party administrator(TPA) York Insurance Services Group, monitors the TPA's performance, periodically meets with the TPA to provide guidance and direction on behalf of the City,and works with the injured worker in developing a return to work plan to hold down the workers' compensation costs. There are three major categories of workers compensation claims: 1)Medical only claims are claims that involve little or no time lost from work(3 days or less) and no disability payments; 2) Indemnity claims, which tend to be more serious injuries, and thus provide payments for lost wages for three or more days lost from work until full recovery after an injury; and 3)Indemnity claims which involve permanent disabilities. Permanent disability benefits(either permanent total disability or permanent partial disability) are paid to workers who never recover their full functions after an injury. The TPA investigates, accepts, or denies claims. If the TPA accepts medical only claims,the City pays for any lost time(3 days or less). If the TPA accepts indemnity claims,the TPA uses the California Labor Code to decide the type of disability,the percentage of disability,the payment amount,and the period of payment. The TPA issued payments are funded through SHARP. BUDGET HIGHLIGHTS Notable Budget Changes • None. The annual revenue appropriation for this fund is comprised of internal service chargeback fees and SHARP grants. Departmental chargeback fees are based on department experience factors, worker category, staffing levels, and operational costs. SHARP grants promote worker health and safety. In FY 2018/19,a$10,000 Wellness and Safety Grant from SHARP 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 SHARP Wellness and Safety Grant expenditures are budgeted for ergonomic evaluations as required during the year. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET WORKERS COMPENSATION FUND FINANCIALS 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actual Adjusted Actuals Adopted S OURCE OF FUNDS Beginning Fund Balance Unassigned 281,642 314,525 304,402 294,053 294,053 297,375 Total Beginning Fund Balance $ 281,642 $ 314,525 $ 304,402 $ 294,053 $ 294,053 $ 297,375 Revenues Intergovernmental Revenues 17,567 10,000 4,954 10,000 10,934 10,000 Internal Service Charges 200,000 175,000 175,000 175,000 175,000 175,000 Total Revenues $ 217,567 $ 185,000 $ 179,954 $ 185,000 $ 185,934 $ 185,000 TOTAL SOURCE OF FUNDS $ 499,209 $ 499,525 $ 484,355 $ 479,053 $ 479,986 $ 482,375 USE OF FUNDS Expenditures Salaries and Benefits 27,059 29,287 28,544 31,634 31,530 36,446 Operating Expenditures Materials&Supplies 17,567 10,048 7,442 10,050 8,699 10,250 Fees&Charges 78 78 78 80 78 80 Consultant&Contract Sery - - 675 600 270 600 Meetings&Training - - - - - - Insurance Premiums 139,776 155,536 153,163 150,000 141,633 175,000 Op crating Exp enditures 157,421 165,662 161,357 160,730 150,680 185,930 Fixed Assets - - - - - - Internal Service Charges 203 175 401 401 401 3,112 Total Expenditures $ 184,683 $ 195,124 $ 190,303 $ 192,765 $ 182,611 $ 225,488 Ending Fund Balance Unassigned 314,525 304,402 294,053 286,288 297,375 256,887 Total Ending Fund Balance $ 314,525 $ 304,402 $ 294,053 $ 286,288 $ 2979375 $ 256,887 TOTALUSEOFFUNDS $ 499,209 $ 4999525 $ 484,355 $ 479,053 $ 4799986 $ 4829375 FY 2018/19 WORKPLAN PRIORITIES Wellness Program Initiative - Continue Wellness Program Initiative (funded by SHARP Grant) to successfully minimize the exposure to incidents which may cause loss to the City or injury to its employees. 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. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 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 Shared Risk Pool(SHARP)Board and provide oversight of third party administrator(TPA) • Review injury and illness trends • Mandatory reporting of injury and illness records(OSHA log 300)and recordkeeping • Review injury and illness trends • Communicate workplace safety and health practices and ensure workplace incidences (injuries, exposures, or illnesses)are reported,investigated,and that corrective actions are taken promptly WORKERS COMPENSATION STAFF City Staff 2014/15 2015/16 2016/17 2017/18 2018/19 FULL-TWE EQUIVALENTS(FTE's) Funded Funded Funded Funded Funded Recreation&Facilities Director - - - - - Human Resources Manager 0.10 0.10 0.10 0.10 0.10 Human Resources Technician 0.10 0.10 0.10 0.10 0.10 TOTAL FTE's 0.20 0.20 0.20 0.20 0.20 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET WORKERS COMPENSATION PERFORMANCE OBJECTIVES AND MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 — Actuals Actuals Actuals Estimated Budget 1. Provide effective,efficient and timely claims administration,working closely with supervisors, injured workers and workers compensation insurance carrier. a. Managing workers compensation claims process and 100% 100% 100% 100% 100% reporting requirements to ensure compliance with current workers compensation laws and City policies and procedures: b. Regularly inspect injury claim files to insure they are 100% 100% 100% 100% 100% up to date and all applicable information is in the file: c. Keep procedures up to date and ensure employees 100% 100% 100% 100% 100% have been trained and are well-versed in the claims process: 2. Establish and uphold effective internal controls with Workers Comp third party administrators contracts. a. Manage contract with third party administrator to Yes Yes Yes Yes Yes ensure compliance with current laws,memoranda of understanding,and City policies and procedures: 3. Provide safety training and internal controls to promote a safe working environment. a. Provide and promote a safety and wellness program Yes Yes Yes Yes Yes to encourage employees to maintain safe and healthy habits: b. Provide safety trasining as required by the City's Yes Yes Yes Yes Yes Injury and Illness Prevention Program: ACTIVITY AND WORKLOAD HIGHLIGHTS — 2014/15 2015/16 2016/17 2017/18 2018/19 — Ac tuals Ac tuals Actuals Estimated Budget 1. New claims (based on date of claim): 2 1 3 2 1 2. Closed claims (based on date closed): 1 0 0 3 1 3. Number of open claims to date (since FY 1998/99): 253 254 257 259 260 4. Number of closed claims to date (since FY 1998/99): 252 252 255 258 258 5. Lost time in full work days: 0 0 0 42 0 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET WEST VALLEY CLEAN WATER PROGRAM - AGENcy FUND WEST VALLEY CLEAN WATER PROGRAM OVERVIEW The Cities of Campbell, Monte Sereno, Saratoga and the Town of Los Gatos, representing the West Valley Communities,joined together to create West Valley Clean Water Program(WVCWP)in 1994. Together they work to control discharge of polluted stormwater into local creeks and the San Francisco Bay. Their mission is to: • Reduce pollutants in stormwater and discharges from storm drains into creeks • Maximize the effectiveness of pollution prevention efforts and work toward repair of impaired waters • Help the four West Valley Communities meet State Water Resources Control Board&Federal Clean Water Act goals for clean and healthy local water bodies In late 2017,after notification from West Valley Sanitation District that the District would no longer be involved in or provide fiscal agent services for WVCWP after June 30,2018,the four agencies decided to establish the operation as a legal entity by entering into a Joint Powers Agreement, consistent with what the agencies had already set up for the West Valley Solid Waste Management oversight activities. With this action, the West Valley Clean Water Program is now overseen by the same Board that includes Council representation from each of the four municipalities. The Clean Water Program's dedicated program staff and contractors carry out the day-to-day operations. The JPA also collaborates with Santa Clara Valley Urban Runoff Pollution Prevention Program, West Valley Sanitation District,and the Santa Clara County Fire District in their operational activities. With the loss of West Valley Sanitation functioning as the fiscal agent for the group,the four cities determined one of the cities would take on this job,similar to the City of Campbell's oversight of the Collection&Recycling Sanitation JPA. Effective July 1,2018,Saratoga began performing these duties,which is limited to payroll and vendor payment functions,and financial reporting. The City does not oversee operational aspects of the WVCWP;it is acting only in a fiduciary function,hence this is an Agency Fund and this budget document does not include Staffing,Fiscal Year Objectives,Key Services,or Performance Measures. BUDGET HIGHLIGHTS Notable Budget Changes • None. FY 2018/19 represents the first year the City has functioned as the fiscal agent for the WVCWP. A new fund and program was established, with WVCWP's fiscal structure adapted to the City's chart of accounts. The budget represents the four member agencies annual contributions, and the full spending of these funds on the program's planned activities. West Valley Sanitation will remit the close-out of excess funds to the City during fiscal year 2018/19,however the contribution amounts,if any are unknown as of budget adoption. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET WEST VALLEY CLEAN WATER PROGRAM - AGENCY FUND FUND FINANCIALS 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actual Adjusted Actuals Adopted SOURCES OF FUNDS Beginning FundBalance Unassigned Total Beg FundBalance $ - $ - $ - $ - $ - $ - Revenues TaxAssessments - Intergovernmental Revenues - Fees,Licenses and Permits - Charge for Services 995,000 Interest - Total Revenues $ $ $ - $ - S - $ 995,000 TOTAL SOURCE OF FUNDS $ $ S - S - $ - $ 995,000 USE OF FUNDS Expenditures Salaries and Benefits 485,000 Operating Expenditures Materials&Supplies - 25,000 Fees&Charges - 95,000 Consultants&Contract Servi, - 383,500 Meetings,Events&Training - 6,500 Fixed Assets - Total Expenditures $ - $ - $ - $ - $ - $ 995,000 Ending Fund Balance Unassigned - Total Ending Fund Balance $ - $ - $ $ - $ - $ - TOTALUSEOFFUNDS $ - $ - $ $ - $ - $ 995,000 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 2011 G.O. BOND DEBT SERVICE FUND DEBT SERVICE FUND OVERVIEW LIBRARY GENERAL OBLIGATION BOND More than two-thirds of the electors of the City voting at a general municipal election held on March 7,2000 approved the issuance of$15 million dollars of General Obligation Bonds to improve, renovate, and expand the Saratoga Community Library. The Series 2001 General Obligation Bonds were subsequently issued by the City of Saratoga pursuant to Chapter 4 of Division 4 of Title 4 of the California Government Code, and a resolution of the Saratoga City Council authorizing the issuance of the Bonds. Bonds constitute general obligations of the City, and the vote to approve the bond authorized the establishment of a property tax levy to fund debt service payments. The property tax levy is added to Saratoga property owner's annual property tax bill, collected by the County Assessor, and subsequently remitted to the City. The 2001 GO Bond's principal and interest on the bonds was established to be payable on February 1 and August 1 of each year, commencing February 1, 2002, and ending August 1, 2031. However,with interest rates falling to historic lows in the fall of 2010,Council requested the 2001 GO Bonds be refunded. The refunding was completed with the refunding effective date held until the ten year anniversary date,August 1,2011 to eliminate the premium penalty. As with the 2001 GO Bonds,principal and interest for the new 2011 GO Bonds are payable on February 1 and August 1 of each year, commencing February 1, 2012 and ending August 1, 2031. The refunding will save Saratoga taxpayers 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 15e.2-12. BUDGET HIGHLIGHTS The Library Bond is the City's only bonded debt,and as a General Obligation debt is paid for by the residents through a parcel assessment. This debt is not a financial cash flow or burden to the City, and budget appropriations are restricted to revenues and expenditures solely related to the servicing of the General Obligation Bond. The City does not assume an administrative fee,or assign staff for the management of the bond's debt service. The 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 an amount about equal to the August principal and interest bond payment. The levy rate is set annually to allow a slow,steady reduction in assessment receipts in order to avoid having to increase the rate in the future. Rapidly increasing property values have created large revenues than expected, therefore rates must be lowered each year to offset the increase in expected assessed valuations. However, the unpredictably rapid increases have continued to push the fund balance higher. FY 2018/19 rates will reduce rates aggressively to again attempt to bring in significantly lower than expenditures. Budgeted expenditures are limited to the bond's principal and interest payments,and fees for continuing disclosure services. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 2011 G.O. BOND DEBT SERVICE FUND FUND FINANCIALS 2014/15 2015/16 2016/17 2017/18 2017/18 2018/19 Actuals Actuals Actual Adjusted Actuals Adopted SOURCES OF FUNDS Beginning Fund Balance Unassigned 897,785 906,600 922,951 959,321 959,321 997,755 Total Beg Fund Balance $ 897,785 $ 906,600 $ 922,951 $ 959,321 $ 959,321 $ 997,755 Revenues TaxAssessments 897,241 898,820 879,777 815,000 876,771 717,539 Interest 1,533 2,541 4,477 2,700 8,398 7,500 Total Revenues $ 898,774 $ 901,362 $ 884,255 $ 817,700 $ 885,169 $ 725,039 TOTAL S OURCE OF FUNDS $ 1,796,560 $ 1,807,961 $ 1,807,206 $ 1,777,021 $ 1,844,491 $ 1,722,795 USE OF FUNDS Expenditures Operating Expenditures - - - - - - Debt Service 889,960 885,010 847,885 847,310 846,735 841,535 Total Expenditures $ 889,960 $ 885,010 $ 847,885 $ 847,310 $ 846,735 $ 841,535 Operating Transfers Transfer Out Total Operating Transfers $ - $ - $ - $ - $ - $ - Ending Fund Balance Unassigned 906,600 922,951 959,321 929,711 997,755 881,259 Total Ending Fund Balance $ 906,600 $ 922,951 $ 959,321 $ 929,711 $ 997,755 $ 881,259 TOTALUSEOFFUNDS $ 1,796,560 $ 1,807,961 $ 1,807,206 $ 1,777,021 $ 1,844,491 $ 1,722,795 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 2011 G.O. BOND DEBT SERVICE FUND 2011 LIBRARY GO BOND DEBT SERVICE August August February Fiscal Year Bond Fiscal Interest Annual Interest Interest Annual Debt Principal Year Rate Principal Payment Payment Interest Service Balance @ YE Bond Refunding Date -August 1, 2011 - - $ 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 2.00096 485,000 203,968 199,118 403,085 888,085 11,055,000 2014/15 2.0009,6 495,000 199,118 194,168 393,285 888,285 10,560,000 2015/16 2.00096 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 3.00096 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 4.00096 525,000 164,768 154,268 319,035 844,035 8,075,000 2020/21 4.000966 545,000 154,268 143,368 297,635 842,635 7,530,000 2021/22 3.000966 565,000 143,368 134,893 278,260 843,260 6,965,000 2022/23 4.000966 580,000 134,893 123,293 258,185 838,185 6,385,000 2023/24 4.000966 610,000 123,293 111,093 234,385 844,385 5,775,000 2024/25 4.000966 630,000 111,093 98,493 209,585 839,585 5,145,000 2025/26 3.500966 655,000 98,493 87,030 185,523 840,523 4,490,000 2026/27 3.500966 685,000 87,030 75,043 162,073 847,073 3,805,000 2027/28 3.700966 705,000 75,043 62,000 137,043 842,043 3,100,000 2028/29 4.000966 730,000 62,000 47,400 109,400 839,400 2,370,000 2029/30 4.000966 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 • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 2011 G.O. BOND DEBT SERVICE FUND 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. FY 2018/19 DEBT MARGIN COMPUTATION Assessed Secured Property Valuation for FY 2017/18 $ 14,451,616,526 Debt Limitation(15%of assessed value) 15% Bonded Debt Limit $ 2,167,742,479 Outstanding Bonded Debt at 6/30/17 2011 Series General Obligation Bond 9,100,000 TOTAL Outstanding Debt $ 9,100,000 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: S 9,100,000 LEGAL DEBT MARGIN $ 2,158,642,479 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL IMPROVEMENT PLAN CAPITAL IMPROVEMENT PLAN BUDGET CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL IMPROVEMENT PLAN CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL IMPROVEMENT PLAN CAPITAL IMPROVEMENT PLAN OVERVIEW The City of Saratoga's FY 2018/19 — 2022/13 Capital Improvement Plan (CIP) represents an ongoing process through which the City identifies,prioritizes,and develops a multi-year workplan for major capital expenditures and their associated funding sources, in the effort to improve and maintain the City of Saratoga's roadways, parks, facilities, and other infrastructure. Generally CIP improvements are major expenditures that have a multi-year life, and result in becoming City assets. As a city is comprised of diverse infrastructure, the CIP is structured under four separate program areas in which projects are categorized by infrastructure type. This includes: Streets Program; Parks & Trails Program; Facilities Program;and an Administrative&Technology Improvement Program. The discrete program areas allow for further sub-classifications of projects the City is undertaking, and the tracking of resources expended for these purposes. The four programs are structured as follows: • Streets Program—includes projects which develop and maintain the City's roadway system to provide safe and efficient traffic flows while minimizing traffic movement and noise through residential neighborhoods; street lighting for traffic safety at intersections and throughout public streets; infrastructure development and maintenance of street surfaces, storm drain systems, curbs, gutters and sidewalks; bridges and retaining walls; and roadway landscaping to maintain the quality streetscapes of the Saratoga community. Gas Tax revenues, Road Maintenance and Rehabilitation Account funds, and Refuse Impact Fees are dedicated funding sources for the Streets Program,with total revenues of approximately$2 million per year. Funding for projects may also come from prior year General Fund savings, from development projects requiring mitigation of impacts, from partnerships with other jurisdictions, or from federal, state, and local grants as either part of statewide initiatives or through grant applications based on specific City projects. • Parks & Trails Program - includes projects to develop and improve parks and sport fields, park structures, trails,the city plaza park, and various citywide tree planting and maintenance. Dedicated funding for the Parks Program includes a Park Development Fee collected when a development project subdivides property,and from Tree Fines collected from un-permitted tree removals. Funding may also come from prior year General Fund savings, from grants and park bond funds, and from donations. Park projects may, on occasion, include community volunteer services for minor construction and clean-up projects. • Facility Program - includes projects for purchasing, constructing or making capital repairs to City buildings, structures, and equipment. City buildings include the Civic Center and Chamber/Theater Building, the Senior/Community Center and auxiliary structures,the Corporation Yard and structures,the North Campus,the Historical Buildings including the Saratoga Museum, the McWilliams House, the Book-Go-Round. Funding is not specifically designated for this capital program; allocations generally come from General Fund prior year savings or grant funds applied to qualified improvements, such as Community Development Block Grant funds for ADA improvements. Administrative & Technology Improvements Program — includes projects which provide operational efficiencies and improvements in the administration of City services. Administrative & Technology Improvement Projects typically include major expenditures for new systems or system upgrades, new technology equipment or services, and one-time and/or multi-year administrative projects such as converting a decades-long accumulation of microfiches, building plans, and legal documents; the development of business and community incentives; the implementation of risk management programs, and for non-recurring CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' CAPITAL IMPROVEMENT PLAN operational improvement projects. Revenue for administrative projects may come from the City's Internal Service Replacement Funds,from grants,or from prior year General Fund savings. CAPITAL PROGRAM GUIDELINES The standard definition of a Capital Improvement Plan(CIP)project is for construction, acquisition, rehabilitation, or non-routine maintenance work that generally costs $25,000 or more with a minimum useful life of 5 years at a fixed location. The City also includes projects under $25,000 in the CIP if they qualify as staged or ongoing improvement projects,or if they are significant multi-year projects. Additionally,non-infrastructure projects may be included in the CIP under the Administrative & Technology programs if they are one-time, operational efficiency, technology,or multi-faceted administrative projects. The CIP endeavours to identify all funded capital improvements planned for completion within the next five years, with cost estimates based on current year dollars. Project estimates are updated each year based upon current design specifications and bid prices. Equipment, operation, and maintenance costs incurred as an outcome of CIP projects are to be identified and included in the operating budget. Under direction from the City Manager, the Public Works Department takes the lead in the preparation of most street and park projects for consideration in the current Capital Improvement Plan, and the Recreation and Facilities Department takes the lead in most Facility Program projects. Capital Administrative & Technology projects typically are recommended by the City Manager,Administrative Services,or Community Development departments as they represent non-infrastructure projects. The CIP Procedure Process Policy guides proposed projects through a proposal preparation and review process, including a review by the Planning Commission; to ensure projects are consistent with the City's General Plan prior to Council's final budget review. The entire Capital Budget is presented to the City Council for final review at the Budget Hearing in May, with budget approval scheduled in June. This summary overview of the CIP budget reflects the City's capital projects plan and estimated project status as of the year end. The CIP schedules reflect estimated unexpended fund balance at the beginning of the fiscal year,the estimated funding to be received during the fiscal year(by category),and the full appropriation of all available funds to allow for either completion of projects or large encumbrances for multi-year projects . The Capital Improvement Plan also includes a number of unfunded capital projects which were brought to the Planning Commission and approved for conformance with General Plan guidelines. These planned projects will be brought to Council for budget approval at a later time,when resources becomes available. The following summary schedules and graphs illustrate program budgets by project category and by fund for the four CIP Programs,and a list of unfunded projects. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 CAPITAL IMPROVEMENT PLAN CAPITAL IMPROVEMENT PLAN BUDGET BY PROJECT CATEGORY Park&Trail Program 12.5% Facility Program 4.1% Streets Program 76.3% Admin&Tech Program 7.1% CAPITAL PROGRAM BUDGET BY PROJECT CATEGORY Proposed Category FY 2018/19 % Streets Street Repair&Resurfacing $ 2,557,456 17.8% Roadway Safety Projects 5,564,468 38.6% Sidewalk, Curbs &Storm Drains 1,362,841 9.5% Bridge &Retaining Walls 1,412,347 9.8% Utility Undergrounding Projects 98,744 0.7% Total Streets 10,995,856 76.3% Parks &Trails Citywide Projects 250,973 1.79/6 Park Projects 504,322 3.5% Trail Projects 1,039,471 7.2% Total Parks &Trails 1,794,767 12.5% Facility Improvements Civic Center Improvements 225,528 1.6% Community Center Improvements 360,600 2.5% Library Building Improvements 5,570 0.0910 Total Facility Improvements 591,698 4.1% Administrative &Technology Improvements Information Technology Projects 167,090 1.2% Community Enhancement Programs 124,650 0.9% Development Programs 524,452 3.6% Administrative Enhancement Programs 204,412 1.4% Total Admin&Technology Improvements 1,020,605 7.1% TOTAL CIP BUDGET BY PROJECT CATEGORY $ 14,402,925 100% CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL IMPROVEMENT PLAN CAPITAL IMPROVEMENT PLAN BUDGET BY FUND Parks&Trails Parks &`1 rails CIP Fund In-Lieu Fees Park&Trails 5 5% Fund Grant Fund Streets Gas Tax 3.5% 3.0% Fund \\\ T 18.7% Facility CIP Fund 4.1% Admin&Tech CIP Find 7.1% Streets Grant Streets CIP Fund Fund 3 3.8% 2 3.9% CAPITAL IMPROVEMENT PLAN BUDGET BY FUND Proposed Category FY 2018/19 % Streets 411 Streets CIP Fund 3,436,373 23.9% 431 Streets Grant Fund 4,869,697 33.8% 481 Streets Gas Tax Fund 2,689,786 18.79/6 Total Streets 10,995,856 76.3% Park&Trails 412 Parks &Trails CIP Fund 799,189 5.5% 421 Parks &Trails Tree Fund 63,753 0.4% 422 Parks &Trails In-Lieu Fees Fund 498,000 3.5% 432 Parks &Trails Grant Fund 433,824 3.0% Total Park&Trails 1,794,767 12.5% Facility Improvements 413 Facility CIP Fund 591,698 4.1% Total Facility Improvements 591,698 4.1% Administrative &Technology Improvements 414 Admin&Tech CIP Fund 1,020,605 7.1% Total Administrative &Te c hno to lgy 1,020,60S 7.1% TOTAL CEP BUDGET BY FUND 14,402,925 1009/0 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL IMPROVEMENT PLAN CIP UNFUNDED LIST Project Project Project Title Description Cost STREET IMPROVEMENT PROJECTS 1 State Route 85/Saratoga This project would fund the beautification of the entry and 250,000 Avenue Beautification exit to State Route 85 at Saratoga Avenue. 2 Saratoga/Herriman Avenues This project would fund the installation of a three-way 250,000 Traffic Signal traffic signal at the intersection of Saratoga and Herriman Avenues. 3 Beaumont Avenue Traffic Circle This project would fund the installation of a traffic circle on 30,000 Beaumont Avenue TOTAL STREETS UNFUNDED PROJECTS $ 530,000 PARK&TRAIL IMPROVEMENT PROJECTS 4 Saratoga Village Creek Trail- This project would fund the construction of a trail 3,000,000 Construction connecting to the Saratoga Village to Quarry Park Trail along Saratoga Creek. 5 Norton/Villa Montalvo This project would fund the construction of an emergency 2,000,000 Emergency Route access road connecting the Montalvo Arts Center parking lot with Norton Road. 6 Joe's Trail at Saratoga de Anza - This project would fund the design and construction of a 750,000 Phase ll trail from Saratoga-Sunnyvale Rd. to Arroyo de Arguello. 7 Quarry Park Trail Improvements This project would fund the design,environmental review, 250,000 and construction of additional trail improvements in Quarry Park. 8 Congress Springs Park- This project would fund the design and construction of a 200,000 Northside Entrance trail connecting the residential neighborhood around Cox Avenue east of State Route 85 to the northside of Congress Springs Park. 9 ADA All-inclusive Playground This project would fund costs related to an all-inclusive 200,000 playground at a city park. 10 Magical Bridge Playground The Finance Committee is recommending moving this 160,000 project to Unfunded as a Mid-Year Budget Adjustment 11 Quarry Park Pond Improvements This project would fund the design,environmental review, 150,000 and construction of improvements to the pond in Quarry Park. 12 Village Clock This project would fund the installation of a clock in 150,000 Saratoga Village. 13 Via Regina Trail This project would fund the construction of a pedestrian- 100,000 equestrian trail connecting Via Regina and Villa Oaks Lane. TOTAL PARKS AND TRAILS UNFUNDED PROJECTS $ 6,960,000 FACILITY IMPROVEMENT PROJECTS 14 Theater Improvements This project would fund the design and construction of 12,000,000 improvements identified in the Civic Theater Master Plan. 15 City Hall Courtyard Renovation This project would fund improvements to the courtyard 150,000 area of City Hall. TOTAL FACILITY UNFUNDED PROJECTS $12,150,000 TOTALS $19,640,000 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL IMPROVEMENT PLAN OPERATING BUDGET COST IMPACTS STREETS CAPITAL IMPROVEMENT PROGRAM Total Operating treet Improvement Projects O erational Impacts 2018/19 2019/20 2020/21 2021/22 2022/23 Ittt acts Street Repair and Resurfacing 9111-003 AnnualRoadwayImprovements Staff time 146,480 150,142 153,896 157,743 161,687 769,948 Roadway Safety Improvements 9121-001 Roadway Safety&Traffic Calming Staff time 9,976 10,226 10,481 10,743 11,012 52,439 9122-006 Prospect Road Improvements Staff time 184,881 - - - - 184,881 9122-007 City-wide Sign Upgrade-Phase II Staff time 1S,011 - - - - 1S,011 9122-008 Big Basin Way Turnaround Staff time 1,848 1,848 9122-010 Fruitvale/Allendale Intersection Imps Staff time 3,S00 3,500 Sidewalks,Curbs&Gutters 9141-005 Infrastructure Maintenance&Repairs Staff time 15,137 15,515 1S,903 16,301 16,708 79,564 9142-005 Saratoga Avenue Sidewalk Staff time 1,859 - - - 1,859 9142-014 Big Basin Way Sidewalk Repairs Staff time 5,537 - - - - S,537 9142-015 El Camino Grande Storm Drain Repair Staff time 11,384 11,384 9142-017 LT Trash Plan Storm Drain Capture Device Staff time 799 - - - - 799 9142-019 Village C/W&S/W Rehabilitation Staff time 11,497 - - - - 11,497 9142-020 Quito Road S/W Improvements Staff time 681 - - - - 681 Bridges&Retaining Walls 9152-001 Fourth Street Bridge Widening No impact to operating budget - - - - - - 9152-002 Quito Road Bridges Replacement Staff time 7,296 - - - - 7,296 9152-004 Quito Road Bridges-ROW Acquisition Staff time 10,331 - - - - 10,331 9153-003 Annual Retaining Wall Maint&Repairs Staff time 9,679 9,921 10,169 10,423 10,683 50,874 Utility Undergrounding Project 9171-002 Quito Road Electric Undergrounding No impact to operating budget - - - - - - Total-StreetPro'ects $ 43S,896 $185,804 $190,449 $195,210 $200,090 $1,207,4S0 PARKS&TRAILS CAPITAL IMPROVEMENT PROGRAM Total Parks&Trails Operational Operating Irn rovement Projects Impacts 2018/19 2019/20 2020/21 2021/22 2022/23 Im acts Citywide Projects 9211-001 Park,Trail,Grounds,and Medians Staff time 35,339 36,223 37,128 38,057 39,008 185,755 9211-002 Citywide Tree Replanting Staff time 19,525 20,013 20,513 21,026 21,552 102,629 9211-010 Park&Trail Safety Improvements Staff time 3,368 - - - - 3,368 9212-001 Tree Dedication Program Staff time 6,125 6,278 6,435 6,596 6,761 32,195 9212-002 SMSCF Tree Dedication Grant Pgm No impact to operating budget - - - - - - Park Projects 9219-002 Quito/Pollard Road Open Space Imps Staff time 21,486 21,486 9222-004 Hakone Gardens Infrastructure Imps Staff time 6,274 6,274 9222-007 Hakone Gardens Koi Pod Imps Staff time 3,729 3,729 9226-004 Quarry Park Walkway Clearing Staff time 13,803 13,803 Trail Projects 9274-001 Joe's Trail ar Saratoga De Anza Staff time 7,467 7,467 9274-002 Guava Ct/Fredericksburg Entrance Staff time 3,660 3,660 9277-004 Saratoga Village to Quarry Park Walkway Staff time 4,480 4,480 9278-001 Saratoga-to-the-Sea Trail I Staff time 21,084 21,084 Total-Parks&Trails Projects 1 146,3401 62,S14 1 64,0771 6S,6791 67,321 40S,930 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL IMPROVEMENT PLAN OPERATING BUDGET COST IMPACTS - CONTINUED FACILITY CAPITAL IMPROVEMENT PROGRAM To tal Operating 7hnprovement Projects Operational Im acts 2018/19 2019/20 2020/21 2021/22 2022/23 Impacts Civic Center Improvements 9321-016 CDD Lobby Remodel Staff time 22,324 - - - - 9322-001 Theater Improvements Staff time 10,520 10,783 11,0S3 11,329 11,613 S5,298 Community Center 9331-008 Electrical Panel Upgrade Staff time 15,688 - - - 15,688 9331-009 Community Center Stage Renovation Staff time 13,394 13,394 9331-010 Bocce Ball Court Staff time 10,418 10,418 9333-007 Senior Center Entrance Remodel Staff time 7,441 7,441 Administrative Projects&Programs 9372-001 Library Exterior Maintenance Projects Staff time 744 763 782 801 821 3,911 Total-Administrative Projects 1 80,5301 11,5461 11,835 1 12,131 1 12,4341 106,151 ADMINISTRATIVE&TECHNOLOGY CAPITAL IMPROVEMENT PROGRAM Total Administrative&Technology Operational Operating Impro Projects Im act 2018/19 2019/20 2020/21 2021/22 2022/23 Im acts Information Technology Projects 9412-004 Document Imaging Staff time 767 - - - - 767 9413-002 City Website/Intranet Redesign Staff time 1,703 - - 1,703 9415-001 Community Development Technology Staff time 4,812 4,932 5,055 5,182 S,311 25,293 9415-002 TRAK-iT Software System Upgrade Staff time 2,7S1 - - 2,7S1 Community Enhancement Programs 9442-001 Landscaping&Lighting District Staff time 3,037 3,037 9442-002 Horseshoe Landscaping&Lighting No impact to operating budget - - 9443-002 City-wide Accessibility Needs Staff 1,2S8 1,2S8 Development Projects&Programs 9451-002 General Plan Update Staff time 14,913 15,286 15,668 16,059 16,461 78,386 9452-003 Saratoga Village Visioning Staff time 2,300 - - - - 2,300 Administrative Projects&Programs 9491-001 Risk Management Mitigation IStaff time 3,428 1 3,S13 1 3,601 1 3,691 1 3,784 1 18,017 Total-Administrative Projects 1 34,9691 23,731 1 24,3241 24,932 1 2S,556 1 133,513 SUMMARY OF OPERATING BUDGET COST IMPACTS BY CAPITAL PROGRAM 5 Years Operating Operating Budget Impacts by Capital Program 2018/19 2019/20 2020/21 2021/22 2022/23 Impact Streets 435,896 185,804 190,449 195,210 200,090 1,207,450 Parks&Trails 146,340 62,514 64,077 65,679 67,321 405,930 Facilities 80,530 11,546 11,835 12,131 12,434 106,151 Adminisitrative&Technology Improvements 34,969 23,731 24,324 24,932 25,556 133,513 Total Operating Budget Impact by Capital Program $697,735 $283,595 $290,685 $297,952 $305,401 $1,853,044 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL IMPROVEMENT PLAN 0i SARq�.oC L, y 1956 FpRN�P CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITALSTREET IMPROVEMENTS , PROGRAM STREET IMPROVEMENT PROJECTS CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL PROGRAM: STREET IMPROVEMENTS CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL PROGRAM: STREET IMPROVEMENTS STREETS PROGRAM PROGRAM DIRECTORY STREET PROGRAM SUMMARY PAGE Program Summary 351 Project List Summary 352 Project Funding Summary 353 Operating Budget Impact 354 STREET REPAIR AND RESURFACING PROJECTS 9111-003 Annual Roadway Improvements 356 ROADWAY SAFETY PROJECTS 9121-001 Roadway Safety&Traffic Calming 360 9122-006 Prospect Road Improvements 362 9122-007 Citywide Signal Upgrades Project-Phase II 366 9122-008 Big Basin Way Turnaround—Design 368 9122-010 Fruitvale Ave&Allendale Ave Intersection Improvements 370 SIDEWALK,CURBS&STORM DRAIN PROJECTS 9141-005 Annual Infrastructure Maintenance and Repairs 374 9142-005 Saratoga Avenue Sidewalk 376 9142-014 Big Basin Way Sidewalk Repairs 378 9142-015 El Camino Grande Storm Drain Repair 380 9142-017 Long Term Trash Plan Storm Drain Capture Devices 382 9142-019 Village Crosswalk and Sidewalk Rehabilitation 384 9142-020 Quito Road Sidewalk Improvements—Design 386 BRIDGE AND RETAINING WALLS 9152-001 Fourth Street Bridge Widening 390 9152-002 Quito Road Bridges Replacement—Preliminary Engineering 392 9152-004 Quito Road Bridges Replacement—ROW Acquisition 396 9153-003 Annual Retaining Wall Maintenance and Repairs 398 STREET UNDERGROUNDING PROJECTS 9171-001 Rule 20A Electric Undergrounding Conversion Projects 402 9171-002 Quito Road Electric Undergrounding Project 404 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' CAPITAL PROGRAM: STREET IMPROVEMENTS 0i SARq�.oC c� y 1956 FpRN�P CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 CAPITAL PROGRAM: STREET IMPROVEMENTS STREET IMPROVEMENTS PROGRAM SUMMARY The Capital Improvement Plan's Streets Program provides for a safe and functional roadway and pedestrian street system. Projects within the Street Program are classified by their primary scope of work into six project categories: • Street Resurfacing,Repair&Maintenance Projects • Roadway Safety Improvements • Street Landscape&Beautification Improvements • Sidewalks,Curbs&Storm Drain Improvements • Bridge&Hillside Support Projects • Utility Undergrounding Projects Street Resurfacing,Repair&Maintenance Projects—consist of projects that primarily repave and improve roadway surfaces. Projects include resurfacing for neighborhood,collector,and arterial streets on a priority basis. Funding is added to the ongoing street resurfacing project each year as available. Individual Street Repair & Resurfacing projects may be established when grants are provided for specifically identified sections of roadway. Roadway Safety Improvements — consists of projects that improve roadway safety factors. Roadway safety improvement projects include small site-specific improvement items that include signs, striping,and curbs as directed by the Traffic Safety Commission; ADA projects for accessibility enhancements, such as curb ramps and audible signals; refuge lanes for traffic merging;railroad crossing improvements;radar feedback signs; and 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 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL PROGRAM: STREET IMPROVEMENTS PROJECT LIST SUMMARY PY FY Total Expended 2017/18 Expended Budgeted for Fiscal Year Project STREETS PROJECT EXPENDITURE SUMMARY To Date Estimated To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expenditures Street Repair&Resurfacing Projects 9111-003 Annual Roadway Improvements 1,366,319 1,804,107 3,170,426 2,SS7,456 - - - - 5,727,882 Roadway Safety Improvements 9121-001 Roadway Safety&Traffic Calming 526,691 S,109 531,800 160,40S 50,000 S0,000 50,000 50,000 892,205 9121-003 CDBG-ADA Signal Lights 188,286 - 188,286 closed - - - 188,286 9122-005 Highway 9 Safety Improvements-Phase IV 875,32S 23S,420 1,110,744 closed 1,110,744 9122-006 Prospect Road Improvements 327,118 2,217,437 2,544,SS5 4,S23,270 7,067,825 9122-007 Citywide Signal Upgrade Project Phase 11 1,207 - 1,207 498,793 S00,000 9122-008 Big Basin Way Turn Around - S0,000 50,000 132,000 182,000 9122-010 Fruitvale/Allendale Intersection Imps - - 2SO,000 2SO,000 Street Landscape&Beautification Projects 9138-001 Village LED Streetlights 440,247 440,247 closed 440,247 Sidewalks,Curbs&Gutters 9141-OOS Infrastructure Maintenance and Repairs 165,850 2S8,388 424,238 264,280 200,000 200,000 200,000 200,000 1,488,S17 9142-004 village S/W&Pedestrian Enhancements 1,153,793 - 1,153,793 closed - - - - 1,1S3,793 9142-OOS Saratoga Avenue Sidewalk 210,281 26,749 237,030 88,653 32S,683 9142-011 Village S/W&Pedestrian Improvements 1,045,349 7S,866 1,121,21S closed 1,121,215 9142-013 Quito Road/Paseo Olivos Curb&Gutter - 40,000 40,000 closed 40,000 9142-014 Big Basin Way Sidewalk Repairs - - - 183,990 183,990 9142-015 El Camino Grande Storm Drain Pump 7,493 14,239 21,731 378,269 400,000 9142-017 Long Term Trash Plan Capture Devices - 13,000 13,000 17,000 30,000 9142-018 Wildcat Creek Outfall Repair 40,000 40,000 closed 40,000 9142-019 Saratoga Village C/W&S/W Rehabilitation - - 382,000 382,000 9142-020 Quito Road Sidewalk Improvements 1,3S0 1,350 48,6SO 50,000 Bridges&Retaining Walls 9152-001 4th Street Bridge Widening 1,078 1,420 2,498 584,502 587,000 9152-002 Quito Road Bridges 994,684 - 994,684 242,425 1,237,109 91S2-004 Quito Road Bridges-ROW 31,567 25,1S1 56,718 343,282 400,000 91S3-003 Annual Retaining Wall Maint&Repairs 31,045 316,818 347,863 242,137 200,000 200,000 200,000 200,000 1,390,000 9153-004 Bainter Avenue Retaining Wall 20,083 189,917 210,000 closed - - - - 210,000 Utility Unde rgro unding Project 9171-002 Quito Road Undergrounding Project - - - 98,744 - - - - 98,744 Total Project Expenditures 7,386,414 5,314,971 12,701,385 10,995,856 450,000 450,000 450,000 450,000 25,497,241 New projects for FY 2018/19 include: • Fruitvale Avenue&Allendale Avenue Interscction Improvcmcnts Closed or unfunded projects in FY 2017/18 include: • CDBG-ADA Signal Lights • Quito Road/Paseo Olivos Curb&Gutttcr • Highway 9 Safety Improvements-Phase IV • Wildcat Creek Outfall Repair • Village LED Streetlights • Bainter Avenue Retaining Wall • Village Sidewalk&Pedestrian Enhancements • Village Sidewalk&Pedestrian Improvements CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL PROGRAM: STREET IMPROVEMENTS STREET IMPROVEMENT PROGRAM FUNDING SUMMARY Prior FY Total Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding C IP STREETS FUND State Roadway Allocations 580,665 580,665 - - - - - 580,665 Road/Refuse Impact Fees 2,686,557 351,300 3,037,856 351,300 3,389,156 CIP Project Reimbursements 311,576 82,437 394,013 77,510 471,523 Contributions/Assessments 836,590 - 836,590 - 836,590 Transfer In-General Fund 4,666,478 1,794,000 6,460,478 832,000 450,000 450,000 450,000 450,000 9,092,478 Transfer In-Other CIP 1,353,283 - 1,353,283 - - - - - 1,353,283 Transfer In-Gas Tax 90,000 - 90,000 - 90,000 GRANT FUND Federal Grants 2,902,054 179,291 3,081,346 6,623,670 9,705,015 State Grants 727,360 - 727,360 65,141 792,501 Local Grants - - 400,000 400,000 Transfer In-Other CIP 466,818 - 466,818 - 466,818 GAS TAX FUND Gas Tax Revenue 6,542,748 175,664 6,718,412 546,233 7,264,645 Loan Repayment 502,409 499,364 1,001,773 523,427 1,525,200 RMRA 80,656 119,043 199,699 116,989 316,688 Transfer In-Other CIP 967,404 482,000 1,449,404 - 1,449,404 TOTAL REVENUES 22,714,S97 3,683,099 26,397,697 9,536,270 450,000 450,000 450,000 450,000 37,733,967 Prior FY Total Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended CEP STREETS FUND Salary&Benefits 661,987 6,092 668,079 - - - - - 668,079 Site Acquisition&Prep 21,184 2,573 23,756 40,165 63,921 Materials&Supplies 403,916 85,006 488,922 250,000 738,922 Fees&Expenses 33,387 8,342 41,730 - 41,730 Consultant/Contract Svs 558,587 83,873 642,459 20,158 662,618 Project Equip&Fixtures 17,088 40,741 57,829 - - - - - 57,829 Construction Expenses 5,263,509 1,093,100 6,356,610 3,126,050 450,000 450,000 450,000 450,000 11,282,660 Reimbursable Expenses 2,228 162 2,390 - - - - - 2,390 Transfers Out 1,394,955 900,595 2,295,549 - 2,295,549 GRANT FUND Site Acquisition&Prep 118,619 19,858 138,477 307,757 446,234 Materials&Supplies 150,936 - 150,936 - 150,936 Fees&Expenses 9,807 9,807 - 9,807 Consultant/Contract Svs 237,541 4,159 241,700 99,248 340,948 Construction Expenses 3,022,149 2,423,643 5,445,792 4,462,692 9,908,484 Reimbursable Expenses 41,107 - 41,107 - 41,107 Transfers Out 466,818 466,818 466,818 GAS TAX FUND Site Acquisition&Prep 11,435 - 11,435 11,435 Materials&Supplies 151,992 30,812 182,804 182,804 Fees&Expenses 28,494 (1,793) 26,701 26,701 Consultant/Contract Svs 407,068 5,561 412,629 412,629 Project Equip&Fixtures 35,013 - 35,013 - 35,013 Construction Expenses 5,270,471 130,247 5,400,718 2,689,786 8,090,504 Transfers Out 1,314,850 482,000 1,796,850 - 1,796,850 TOTAL EXPENDITURES 19,623,140 5,314,971 24,938,111 10,995,856 4S0,000 450,000 450,000 4S0,000 37,733,967 FY To tal 2017/18 Estimated Budgeted for Fiscal Year Project TOTAL ALL FUND SUMMARY Actuals Total 2018/19 2019/20 2020/21 2021/22 2022/23 Activity BEGINNING BALANCE 3,091,457 1,459,586 - - - - Revenues&Transfers In 22,714,597 3,683,099 26,397,697 9,536,270 450,000 450,000 450,000 450,000 37,733,967 Expenditures&Transfers O 19,623,140 5,314,971 24,938,111 10,995,856 450,000 450,000 450,000 450,000 37,733,967 ENDING BALANCE 3,091,4S7 1,4S9,S86 1,4S9,S86 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET CAPITAL PROGRAM: STREET IMPROVEMENTS OPERATING BUDGET IMPACTS To tal Operating 7reetrovement R-ci jectsOperational Impacts 2018/19 2019/20 2020/21 2021/22 2022/23 Impacts air and Resng Annual Roayhnprovements Staff time 146,480 150,142 1S3,896 157,743 161,687 769,948 Roadway Safety Improvements 9121-0o1 Roadway Safety&Traffic Calming Staff time 9,976 10,226 10,481 10,743 11,012 52,439 9122-006 Prospect Road Improvements Staff time 184,881 - - - - 184,881 9122-007 City-wide Sign Upgrade-Phase B Staff time 15,011 15,011 9122-008 Big Basin Way Turnaround Staff time 1,848 1,848 9122-010 Fruitvale/Allendale Intersection Imps Staff time 3,500 3,500 Sidewalks,Curbs&Gutters 9141-005 Infrastructure Maintenance&Repairs Staff time 1S,137 15,S15 15,903 16,301 16,708 79,564 9142-005 Saratoga Avenue Sidewalk Staff time 1,859 1,859 9142-014 Big Basin Way Sidewalk Repairs Staff time S,537 S,537 9142-015 El Camino Grande Storm Drain Repair Staff time 11,384 11,384 9142-017 IT Trash Plan Storm Drain Capture Device Staff time 799 799 9142-019 Village C/W&S/W Rehabilitation Staff time 11,497 11,497 9142-020 Quito Road S/W Improvements Staff time 681 681 Bridges&Retaining Walls 9152-001 Fourth Street Bridge Widening No impact to operating budget - - 9152-002 Quito Road Bridges Replacement Staff time 7,296 7,296 9152-004 Quito Road Bridges-ROW Acquisition Staff time 10,331 10,331 9153-003 Annual Retaining Wall Maint&Repairs Staff time 9,679 9,921 10,169 10,423 10,683 50,874 Utility Undergrounding Project 9171-002 Quito Road Electric Undergrounding No impact to operating budget I - - - - Total-Street Projects 96 $185,804 $190,$ 43S,8449 $19S,210 $200,090 $1,207,450 Note-Operating Budget impacts identify staff time cost for project management,inclusive of oversight design,grant reporting,and miscellaneous maintenance. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET STREET REPAIR & RESURFACING PROJECTS STREET REPAIR & RESURFACING PROJECTS CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET STREET REPAIR & RESURFACING PROJECTS ANNUAL ROADWAY IMPROVEMENTS CITYWIDE Project Name Annual Roadway Improvements Project Number 9111-003 Department Public Works Project Manager John Cherbone Description This project funds ongoing street resurfacing and maintenance in order to maintain the City's pavement infrastructure. Location This Citywide project is conducted throughout the fiscal year. Project Every two to three years,an engineering consultant conducts an assessment of City roads using the Paving Background Condition Index(PCI).The City uses this assessment to prioritize resurfacing of streets and arterial roads. 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 As of 2017,the City's overall PCI is 71. With a total of 135 miles of roadway in Saratoga, contractors perform most street resurfacing work; staff conducts minor repairs to roadways when practical. Resurfacing streets on a regular basis extends the lifetime of the roadways and minimizes the need for larger and more costly projects in the future. Keeping the streets in good condition also reduces liability risks and staff time for minor repairs. This project is funded in part by Santa Clara County Measure B Sales Tax and state funds from Road Repair and Maintenance fees and Gasoline Tax proceeds. Although collection of the half-cent Measure B sales tax began in April 2017,funds are being held in an escrow account pending the outcome of a legal challenge. Operating Engineering, administrative, and maintenance staff costs for project oversight and implementation of Budget $146,480 will be incorporated into the Fiscal Year 2018/19 operating budget. Impacts CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET STREET REPAIR & RESURFACING PROJECTS ANNUAL ROADWAY IMPROVEMENTS PROJECT TIMELINE PROJECTi Project Development Ongoing Prepare plans andspecifications 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 FUNDING SCHEDULE 9111-003 Prior FY Total Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding C IP STREET FUND Road/Refuse Impact Fees 351,300 351,300 702,600 351,300 - - - - 1,053,900 Project Reimbursements 6,500 55,200 61,700 - 61,700 Transfers In-General Fund 550,000 295,000 845,000 845,000 Transfers In-Other CIP 630,648 - 630,648 - 630,648 TOTAL 1,538,448 701,500 2,239,947 351,300 2,591,248 GAS TAX FUND Gas Tax-HUTA - 34,752 34,752 34,752 69,504 Gas Tax-7360(TCR swap) - 140,912 140,912 511,481 652,393 State-Loan Repayment 502,409 499,364 1,001,773 523,427 1,525,200 Road Maintenance Repair 80,656 119,043 199,699 116,989 316,688 Transfers In 572,850 - 572,850 - 572,850 TOTAL 1,155,915 794,071 1,949,986 1,186,649 3,136,635 TOTAL REVENUES 2,694,362 1,495,571 4,189,933 1,537,949 5,727,882 Prior FY Total Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended C IP STREET FUND EXP Salary&Benefits - 6,092 6,092 - - - - - 6,092 Materials&Supplies 92,006 78,360 170,367 250,000 420,367 Consultant/Contract Svs 5,760 - 5,760 - 5,760 Project Equip&Fixtures 16,319 40,741 57,060 - 57,060 Construction Expenses 584,631 486,819 1,071,451 430,518 1,501,968 Transfers Out - 600,000 600,000 - 600,000 TOTAL 698,717 1,212,013 1,910,729 680,518 2,591,247 GAS TAX EXP Materials&Supplies 1,021 30,812 31,833 31,833 Fees&Expenses 2,500 (2,500) - Consultant/Contract Svs 455 - 455 - 455 Construction Expenses 663,627 81,782 745,409 1,876,938 2,622,347 Transfers Out - 482,000 482,000 - 482,000 TOTAL 667,602 592,094 19259,697 1,876,938 3,136,635 TOTAL EXPENDITURES 1,366,319 1,804,107 3,170,426 2,557,456 5,727,882 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET STREET REPAIR & RESURFACING PROJECTS ANNUAL ROADWAY IMPROVEMENTS FUNDING SCHEDULE - CONTINUED Prior FY Year 2017/18 Budgeted for Fiscal Year Project Activity Actuals Total 2018/19 2019/20 2020/21 2021/22 2022/23 Activity C IP STREET FUND Beginning Balance 839,731 329,218 - - - - - Revenues&T/I 1,538,448 701,500 2,239,947 351,300 2,591,247 Expenditures&T/O 698,717 1,212,013 1,910,729 680,518 2,591,247 Ending Balance 839,731 329,218 329,218 GAS TAX FUND Beginning Balance 488,313 690,289 Revenues&T/I 1,155,915 794,071 1,949,986 1,186,649 3,136,635 Expenditures&T/O 667,602 592,094 1,259,697 1,876,938 3,136,635 Endin Balance 488,313 690,289 1 690,289 - TOTAL BALANCE 1,328,043 1,019,507 1 1,019,507 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ROADWAY SAFETY PROJECTS ROADWAY SAFETY PROJECTS CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' ROADWAY SAFETY PROJECTS ROADWAY SAFETY& TRAFFIC CALMING I � M1 eu CITYWIDE Project Name Roadway Safety&Traffic Calming Project Number 9121-001 Department Public Works Project Manager Mainini Cabute Description In conjunction with the Traffic Safety Commission (TSC), this project funds traffic calming improvements that include the installation of roadway devices that enhance pedestrian and roadway safety. Location This is a Citywide project;locations vary depending on prioritized projects for the year. Project This project represents an annual transfer of $50,000 of City funds in order to make roads Background safer. The focus of these projects is to decrease driver speed and make pedestrians more visible,resulting in the reduction of the number of accidents in the City. The Traffic Safety Commission(TSC) and staff meet on a bi-monthly basis to review and assess traffic concerns throughout the City. Concerned residents may also attend these meetings to provide input and request improvements. Most TSC recommended improvements are small and fall within the scope of the operating budget. Occasionally, more costly remediation is warranted and roadway safety and traffic calming funds are used. The most common uses of these funds are for traffic calming improvements such as speed humps, radar signs, median chokers, bulb-outs, and enhanced crosswalks. The TSC reviews the Unfunded CIP traffic projects each year and prioritizes according to safety and proximity to schools. Projects completed in Fiscal Year 2017/18 include traffic-calming measures and bicycle improvements on Allendale Avenue from Chester Avenue to Quito Road, lighted crosswalks installed on McCoy Avenue and Cox, an enhanced crosswalk at Herriman and Lexington Court, and other improvements as identified by the TSC and the City Traffic Engineer. In Fiscal Year 2018/19,projects include enhanced crosswalks installed Fruitvale and Douglass Lane and Cox Avenue and Cumberland Drive, as well as other improvements identified by the TSC and the City Traffic Engineer. Operating Engineering, administrative, and maintenance staff costs for project oversight and Budget Impacts implementation of$9,976 will be incorporated into the Fiscal Year 2018/19 operating budget. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET E ROADWAY SAFETY PROJECTS ROADWAY SAFETY&TRAFFIC CALMING PROJECT TIMELINE PROJECT COMPONENT Project Development Ongoing Prepare plans andspecifications 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 FUNDING SCHEDULE 9121-001 Prior FY Total Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding C IP STREET FUND Project Reimbursement 850 - 850 - - - - - 850 Transfers In-General Fund 591,355 50,000 641,355 50,000 50,000 50,000 50,000 50,000 891,355 Transfers In-Other CIP - - - - - - - - Transfers In-CDBG Trasnfers In-L&L - - - - TOTAL REVENUES 592,205 50,000 642,205 50,000 50,000 50,000 50,000 50,000 892,205 Prior FY Total Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended C IP STREET FUND Materials &Supplies 64,837 64,837 - - - - - 64,837 Fees &Expenses 310 310 310 Consultant/Contract Svs 143,982 143,982 143,982 Construction Expenses 317,561 317,561 165,314 50,000 50,000 50,000 50,000 683,075 TOTAL EXPENDIFURES 526,691 526,691 165,514 50,000 50,000 50,000 SO,0001 892,205 Prior FY Total Year 2017/18 Budgeted for Fiscal Year Project Ac tivity Ac tuals To tal 2018/19 2019/20 2020/21 2021/22 2022/23 Ac tivity C IP STREET FUND BEGINNING BALANCE 65,514 115,514 - - - - Revenues &T/I 592,205 50,000 642,205 50,000 50,000 50,000 50,000 50,000 J 892,205 Expenditures &T/O 526,691 - 526,691 165,514 50,000 50,000 50,000 50,000 892,205 ENDING BALANCE 65,514 115,514 115,514 - - - - - CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ROADWAY SAFETY PROJECTS PROSPECT ROAD IMPROVEMENTS PMSPect Road AL 7 � G "P { i-ft g� Project Name Prospect Road Improvements Project Number 9122-006 Department Public Works Project Manager Macedonio Nunez Description This project will improve the Prospect Avenue corridor through the addition of roadway medians, sidewalks,bicycle loops,and ADA ramps to increase pedestrian and bicycle access. Location Project work will occur along a 1.9-mile section of Prospect Road between Saratoga/Sunnyvale Rd and Lawrence Expressway. Project This project will improve the safety of the road by physically reducing the width of the road,channeling Background vehicles into defined turn lanes, reducing the threat of vehicles crossing the center lane, and creating safer pedestrian crossings. Improvements to existing pedestrian,bicycle and VTA bus stop facilities, will enhance pedestrian accessibility and provide a safe and convenient walking and bicycling experience. The scope of the project includes the following: • Installation of sidewalk at several identified gaps,and several ADA compliant ramps at several locations along Prospect Road. • Installation of bicycle detector loops at all the signalized intersections within the project limits, and"Green"bike lanes at the heavily congested intersections of Prospect Road and Saratoga Sunnyvale Road and Prospect Road and Lawrence Expressway. • Installation of new bus pads and accessibility improvements at three VTA bus stops on Prospect Road. • Installation of several new landscaped medians and improvements to existing medians on Prospect Road. • A continuous Class II bicycle lane along the entire length of the segment. A $5.28 million OBAG grant, $1 million from City Gas Tax monies, $760,000 from CIP Reserve and reimbursement from other agencies of$230,000 will fund this project. Operating Engineering and administrative staff costs for project oversight and implementation of$184,881 will be Budget Impacts incorporated into the Fiscal Year 2018/19 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 • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ROADWAY SAFETY PROJECTS PROSPECT ROAD IMPROVEMENTS PROJECT TIMELINE PROJECT COMPONENT Begin Design Phase Aril 2015 Prepare plans andspecifications Begin Bid Process March 2017 Council authorizes bidding the project Contract Awarded July 2017 Council approved vendor Estimated Construction Start November 2017 Construction project begins Estimated Completion Date September 2018 Project is completed PROSPECT ROAD IMPROVEMENTS 9122-006 Prior FY Total Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding CIP STREET FUND Transfers In-General Fund 760,000 760,000 - - - - - 760,000 TOTAL S TREET FUND - 760,000 760,000 - - - - 760,000 GRANT FUND State-BEP Grant 54,642 54,642 5,226,358 - 5,281,000 TOTAL GRANT FUND - 54,642 54,642 5,226,358 - - - 5,281,000 GAS TAX Transfers In-Other CIP 544,825 482,000 1,026,825 - - - - 1,026,825 TOTAL GAS TAX FUND 544,825 482,000 1,026,825 - - - - - 1,0269825 TOTALREVENUES 544,825 1,296,642 19841,467 5,226,358 - - - - 7,0679825 Prior FY Total Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended CIP STREET FUND Materials&Supplies 306 306 - - - - - 306 Fees&Expenses 5,230 5,230 - 5,230 Construction Expenses 8,646 8,646 745,818 754,464 TOTAL STREET FUND - 14,182 14,182 745,818 - - - 760,000 GRANT FUND Fees&Expenses 40 - 40 - 40 Construction Expenses 2,188,522 2,188,522 3,092,438 59280,960 TOTAL GRANT FUND 40 2,188,522 2,188,562 3,092,438 - - 5,281,000 GAS TAX FUND Site Acquisition&Prep 60 - 60 - 60 Fees&Expenses 21,035 707 219742 21,742 Consultant/Contract Svs 281,502 1,931 283,434 - 283,434 Construction Expenses 24,480 12,095 36,575 685,014 7219590 TOTAL GAS TAX FUND 327,077 14,733 341,811 685,014 - - - - 1,026,825 TOTAL EXPENDITURES 327,118 2,217,437 29188,562 4,523,270 - - - - 7,0679825 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ROADWAY SAFETY PROJECTS PROSPECT ROAD IMPROVEMENTS FUNDING SCHEDULE-CONTINUED Prior FY Total I T Year 2017/18 Budgeted for Fiscal Year Project Activity Actuals Total 2018/19 2019/20 2020/21 2021/22 2022/23 Activity CIP STREET FUND Beginning Balance - 745,818 - - - - - Revenues&T/I 760,000 760,000 - 760,000 Expenditures&T/O 14,182 14,182 745,818 760,000 ENDING BALANCE - 745,818 745,818 - - - - - GRANT FUND Beginning Balance (40) (2,133,920) - Revenues&T/I 54,642 54,642 5,226,358 5,281,000 Expenditures&T/O 40 2,188,522 2,188,562 3,092,438 5,281,000 Ending Balance (40) (2,133,920) (2,133,920) - - - - - - GAS TAX FUND Beginning Balance 217,748 685,014 - Revenues&T/I 544,825 482,000 1,026,825 - 1,026,825 Expenditures&T/O 327,077 14,733 341,811 685,014 1,026,825 ,Ending Balance 217,748 685,015 1 685,014 - - - - - ENDING BALANCE 217,708 (1,388,102) 1 (1,388,102)1 - CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ROADWAY SAFETY PROJECTS 1956 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ROADWAY SAFETY PROJECTS CITYWIDE SIGNAL UPGRADE PROJECT — PHASE II '= I CITYWIDE Project Name Citywide Signal Upgrade Project-Phase II Project Number 9122-007 Department Public Works Project Manager Macedonio Nunez Description This project continues the development of a citywide master signal system to standardize and coordinate the City's traffic signals and allow real-time monitoring and control along Saratoga's major traffic corridors. The project also allows for future regional integration. Location This Citywide project will incorporate all City owned signals in Saratoga. Project The City's signal timing settings at intersections were last coordinated in approximately 2001. Background Subsequently,the City of Saratoga received a Regional Signal Timing Program(RSTP)grant from VTA in 2006 to conduct a citywide signal timing study. Phase I of the project included developing updated signal coordination plans during the morning, afternoon, and evening periods for the signalized intersections in the City of Saratoga. Phase I: Upgrade hardware and software at all City signals, and provide inter-connect hardware with wire and wireless technology. This phase is complete. Phase II:Install a Traffic Management System at City Hall,and communication equipment in all signals along Saratoga Avenue between Fruitvale Avenue and Cox Avenue. Inter-connect signals along Coordination Corridors and coordinate with the Management System. With the Traffic Management System,City engineers will be able to manage signal coordination to improve traffic flow at some of the City's busiest intersections. Additionally, the system will be able to monitor live traffic patterns and adjust signal phasing as needed. A$400,000 VTA grant and a$100,000 transfer from other CIP projects fund this project. Operating Engineering and administrative staff costs for project oversight and implementation of$15,011 will be Budget Impacts incorporated into the Fiscal Year 2018/19 operating budget. The new system will reduce call-out expenses for traffic signal maintenance costs,as staff will be able to manage signal-timing changes. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ROADWAY SAFETY PROJECTS CITYWIDE SIGNAL UPGRADE PROJECT - PHASE II PROJECT TIMELINE PROJECT COMPONENT Begin Design Phase March 2018 Prepare plans andspecification Begin Bid Process May 2018 Council authorizes bidding the project Contract Awarded November 2018 Council approves vendor Estimated Construction Start Aril 2019 Construction project begins Estimated Completion Date August 2019 Project is completed FUNDING SCHEDULE 9122-007 Prio r FY To tal Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 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 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended GRANT FUNDS Consultant/Contract Svs 965 965 - - - - - 965 Construction Expenses - - 399,035 399,035 TOTAL 965 965 399,035 400,000 GAS TAX FUND Consultant/Contract Svs 241 241 241 Construction Expenses - - 99,759 99,759 TOTAL 241 241 99,759 100,000 TOTAL EXPENDITURES 1,207 1,207 498,793 500,000 Prior FY Total Year 2017/18 Budgeted for Fiscal Year Project Activity Actuals Total 2018/19 2019/20 2020/21 2021/22 2022/23 Activity GRANT FUNDS BEGINNING BALANCE (965) (965) - - - - - Revenues &T/I - - - 400,000 400,000 Expenditures &T/O 965 - 965 399,035 400,000 ENDING BALANCE (965) (965) (965) - - GAS TAX FUND BEGINNING FUND BAL - 99,759 99,759 - Revenues &T/I 100,000 - 100,000 - 100,000 Expenditures &T/O 241 241 1 99,759 100,000 ENDING FUND BALANCE 99,759 99,759 I 99,759 - I - ENDING FUND BALANCE 98,794 98,794 1 100,000 - 1 100,000 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ROADWAY SAFETY PROJECTS BIG BASIN WAY TURNAROUND 4 2 ob f _ 'sri5 fN h i Project Name Big Basin Way Turnaround Project Number 9122-008 Department Public Works Project Manager John Cherbone Description This project will fund the design of a turnaround on Big Basin Way to improve traffic circulation through Saratoga Village. Location The Turnaround is located just past the corner of 6r'Street and Big Basin Way. Project Vehicles travelling westbound on Big Basin Way through Saratoga Village towards Hakone Gardens Background have limited opportunities to turnaround after passing 61 Street. The City has received numerous complaints about drivers attempting to turnaround after 61 Street,disrupting traffic or creating a hazard. This project would improve traffic circulation in the Saratoga Village area and reduce traffic disruptions and hazards. This project will be completed in two phases: design and construction. A$50,000 allocation from the CIP Reserve funds the design phase of this project.Total design costs are estimated to be$20,000 The estimated cost for the construction phase is$132,000. Operating Engineering and administrative staff costs for project oversight and implementation of$1,848 will be Budget Impacts incorporated into the Fiscal Year 2018/19 operating budget. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ROADWAY SAFETY PROJECTS BIG BASIN WAY TURNAROUND PROJECT TIMELINE PROJECT COMPONENTDESCRIPTION Begin Design Phase Complete Begin preparing design and plans Begin Bid Process August 2018 Solicit bids from qualified contractors Contract Award October 2018 Award contract for construction Estimated Construction Start November 2018 Construction begins Estimated Completion Date December 2018 Construction complete FUNDING SCHEDULE 9122-008 Prior FY Total Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding C IP STREET FUND Transfers In-General Fund 50,000 50,000 132,000 - - - - 182,000 TOTAL REVENUES 50,000 50,000 132,000 182,000 Prior FY To tal Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended C IP STREET FUND Consultant/Contract Svs 15,719 15,719 - - - - - 15,719 Construction Expenses - - 132,000 132,000 Transfers Out 34,281 34,281 - 34,281 TOTAL EXPENDITURES 50,000 I SO,0001 132,000 182,000 Prio r FY To tal Year 2017/18 Budgeted for Fiscal Year Project Ac tivity Ac tuals To tal 2018/19 2019/20 2020/21 2021/22 2022/23 Activity C IP STREET FUND BEGINNING BALANCE - - - - - - - Revenues &T/I 50,000 50,000 132,000 182,000 Expenditures &T/O 50,000 50,000 132,000 182,000 ENDING BALANCE - - CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET �' ROADWAY SAFETY PROJECTS FRUITVALE &ALLENDALE AVENUE INTERSECTION IMPROVEMENTS � iwl+4 ixrap _ �++srV+`w{dfiyr iyh*wdu( f� �Aaa:al�h Cr{nyd ¢ Project Name Fruitvale Avenue&Allendale Avenue Project 9122-010 Intersection Improvements Number Department Public Works Project John Cherbone Manager Description This project would make improvements to the intersections at Fruitvale Avenue and Allendale Avenue. Location This project is located at the intersections of Fruitvale Avenue and Allendale Avenue. Project Fruitvale Avenue is one of several major collector streets within the City carrying high volumes of Background vehicle traffic. The intersection Fruitvale Avenue and Allendale Avenue serves as the primary access to West Valley College, Redwood Middle School,the Post Office, Saratoga City Hall. As a result,the intersection becomes congested with pedestrian and vehicle traffic on weekdays during school drop off and pick up. This project would remove the right-turn slip lane at the intersection.Right-turn slip lanes have a small island between the intersection and the right turn lane.While these lanes are typically installed to allow vehicles to make right turns without entering the intersection and to increase traffic flow,they can also make crossing the street more challenging for pedestrians. It is particularly problematic in areas near schools were students may congregate on the right-turn slip area. Removing the right-turn slip lanes is expected to increase pedestrian visibility and slow vehicle speeds. Eliminating the right-turn slip lanes could also require removal and replacement of the traffic signals at the intersection. Operating Engineering, administrative, and maintenance staff costs for project oversight and implementation of Budget Impacts $3,500 will be incorporated into the Fiscal Year 2018/19 operating budget. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET 1 ROADWAY SAFETY PROJECTS ROADWAY SAFETY PROJECTS PROJECT TIMELINE PROJECT • P• DESCRIPTION Begin Design Phase January 2019 Prepare plans and specifications Begin Bid Process April 2019 Solicit bids from qualified contractors Contract Award May 2019 Award contract for construction Estimated Construction Start I July 2019 1 Begin construction Estimated Completion Date August 2019 Construction complete FUNDING SCHEDULE 9122-010 Prior FY Total Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding C IP STREET FUND Transfers In-General Fund 250,000 - - - - 250,000 TOTAL REVENUES 250,000 250,000 Prior FY Total Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended C IP STREET FUND Construction Expenses 250,000 - - - - 250,000 TOTAL EXPENDITURES 250,000 250,000 Prior FY Total Year 2017/18 Budgeted for Fiscal Year Project Ac tivity Ac tuals To tal 2018/19 2019/20 2020/21 2021/22 2022/23 Activity C IP STREET FUND BEGINNING BALANCE - - - - - Revenues &T/I 250,000 250,000 Expenditures &T/O 250,000 250,000 ENDING BALANCE - CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ROADWAY SAFETY PROJECTS 1956 CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ROADWAY SAFETY PROJECTS SIDEWALKS, CURBS & STORM DRAINS CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET SIDEWALKS CURBS & GUTTERS PROJECTS ANNUAL INFRASTRUCTURE MAINTENANCE & REPAIRS CITYWIDE Project Name Annual Infrastructure Maintenance and Project Number 9141-005 Repairs 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 Storm drains:Storm drains are inspected by the City of Saratoga Public Works Department and Background West Valley Sanitation District to identify failures, or potential failures. Sections of storm drains that have failed, which often results in flooding, are either replaced or repaired to prevent future failures. Curbs and Gutters: Curbs and gutters need to be maintained on a regular basis. Ongoing repairs prevent flooding through improved water runoff. Additionally, well maintained curbs and gutters improve pedestrian and bicycle safety by reducing tripping hazards. Damage to curbs and gutters is most frequently caused by tree roots or impact from a heavy vehicle. Sidewalks:Sidewalk repairs ensure that the City's sidewalks are maintained in good condition, minimizing the need for larger and more costly improvement projects in the future. Additionally, repairs to City sidewalks minimize tripping hazards and reduce liability risk. Approximately 35,000 square feet of sidewalk is repaired each year. There are approximately 17 linear miles of sidewalk in Saratoga. Bridges:Each year Caltrans inspects all bridges in the state,including 12,200 bridges owned by local government agencies. Caltrans provides repair recommendations, determines the safe load capacity of all bridges, and assists in specifications and estimates for bridge maintenance projects. Annual upgrades and repairs to the City's various infrastructure helps to keep them functioning properly, thereby reducing expenses associated with failure to those systems. In FY 2017/18, projects included; sidewalk repairs on Via Real Drive and Via Arriba Drive, and storm drain, curb and gutter repairs on Quito Road. Operating Engineering, administrative and maintenance staff costs for project oversight and Budget Impacts implementation of$15,137 will be incorporated into the Fiscal Year 2018/19 operating budget. ANNUAL INFRASTRUCTURE MAINTENANCE &REPAIRS CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET SIDEWALKS CURBS & GUTTERS PROJECTS PROJECT TIMELINE PROJECT COMPONENTDESCRIPTION Begin Design Phase Ongoing Begin Bid Phase Ongoing Contract Award Ongoing Estimated Construction Start Ongoing Estimated Completion Date Ongoing FUNDING SCHEDULE 9141-005 Prior FY Total Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding C IP STREET FUND Transfers In-General Fund 200,000 200,000 400,000 200,000 200,000 200,000 200,000 200,000 1,400,000 Transfers In-Other CIP 88,517 - 88,517 - - - - - 88,517 TOTAL REVENUES 288,517 200,000 488,517 200,000 200,000 200,000 200,000 200,000 1,488,517 Prior FY Total Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2011/12 2012/13 2013/14 2014/15 Expended CIP STREET FUND Materials &Supplies 556 4,073 4,629 - - - - 4,629 Fees &Expenses - 2,073 2,073 - - - - - 2,073 Construction Expenses 165,294 252,241 417,536 264,280 200,000 200,000 200,000 200,000 1,481,815 TOTAL EXPENDITURES 165,850 258,388 424,238 264,280 200,000 200,000 200,000 200,0001 1,488,517 Prio r FY To tal Year 2017/18 Budgeted for Fiscal Year Project Activity Actuals Total 2018/19 2011/12 2012/13 2013/14 2014/15 Activity CIP STREET FUND BEGINNING FUND BAL 122,667 64,280 - - - - - Revenues &T/I 288,517 200,000 488,517 200,000 200,000 200,000 200,000 200,000 1,488,517 Expenditures &T/O 165,850 258,388 424,238 264,280 200,000 200,000 200,000 200,000 1,488,517 ENDING FUND BALANCE 122,667 64,279 1 64,280 - - - - - CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET SIDEWALKS CURBS & GUTTERS PROJECTS SARATOGA AVENUE SIDEWALKS - m A4 a 4ti m Heritage Oak T ShaCow Oaks I 1 s dap m N atio R 0 _ a Orchard Road A 6r O� a� dq 4 _r a �ryc � s F - - 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 Since 1992, the City has been adding new sections of sidewalk along Saratoga Avenue,using Transit Background 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. In FY 2017/18, sidewalks were installed from La Paloma Place to Park Place. Work for this project is conducted by a contractor and managed by City staff. Operating Engineering, administrative, and maintenance staff costs for project oversight and implementation of Budget Impacts $1,859 will be incorporated into the Fiscal Year 2018/19 operating budget. The project will make significant improvements to pedestrian safety on Saratoga Avenue. Extending the existing sidewalk will increase maintenance costs. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET SIDEWALKS CURBS & GUTTERS PROJECTS SIDEWALKS, CURBS & STORM DRAINS PROJL__ TIME-- PROJECT PO Estimated Completion Date Ongoing Project is ongoing FUNDING SCHEDULE 9142-005 Prior FY Total Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding GRANT FUND State MTC (TDA) 260,542 260,542 65,141 - - - - 325,683 TOTAL REVENUES 260,542 260,542 65,141 - - 325,683 Prio r FY To tal Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDTEURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended GRANT FUND Consultant/Contract Svs 7,600 1,750 9,350 - - - - - 9,350 Construction Expenses 201,955 24,999 226,954 88,653 315,606 Reimbursable Expenses 727 - 727 - 727 TOTAL EXPENDITURES 210,281 26,749 237,030 88,653 325,683 Prio r FY To tal Year 2017/18 Budgeted for Fiscal Year Project Ac tivity Ac tuals To tal 2018/19 2019/20 2020/21 2021/22 2022/23 Activity GRANT FUND BEGINNING BALANCE 50,261 23,512 - - - - Revenues &T/I 260,542 - 260,542 65,141 325,683 Expenditures &T/O 210,281 26,749 237,030 88,653 325,683 ENDING BALANCE 50,261 23,512 23,512 - CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET SIDEWALKS CURBS & GUTTERS PROJECTS BIG BASIN WAY SIDEWALK REPAIR .• 018 rity Pets o� 0 Project Name Big Basin Way Sidewalk Repairs Project Number 9142-014 Department Public Works Project Manager Macedonio Nunez 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 Saratoga-Sunnyvale Road. Project The Village is the historical downtown center of Saratoga and is the main corridor for local retail and Background professional offices. Businesses found along this thoroughfare road include fine restaurants, salons, galleries,home furniture show rooms,wine tasting rooms,bakeries,banks,and delis.As a shopping and dining destination,there is a good deal of pedestrian traffic as shoppers and diners enjoy the Village's ambiance. This project will improve patron safety along this major active corridor and enhance Saratoga's pedestrian-friendly environment through ensuring a safe and convenient walking experience. This project provides funding for rehabilitation of any sidewalk, curb, and gutter along the Saratoga Village that is deteriorating,or considered a potential tripping hazard. A$163,000 STP OBAG grant and gas tax revenues of$20,990 fund this project. Operating Engineering and administrative staff costs for project oversight and implementation of$5,537 will be Budget Impacts incorporated into the Fiscal Year 2018/19 operating budget. Upon completion, costs for minor repairs will be reduced,and liability risks will be lowered with infrastructure in new condition and in compliance with current standards. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET SIDEWALKS CURBS & GUTTERS PROJECTS BIG BASIN WAY SIDEWALK REPAIR PROJECT TIMELINE PROJECT COMPONENT Design Phase September 2015 Prepare plans and specifications Contract Award May 2018 Council awards contract Estimated Construction Start June 2018 Construction Begins Estimated Completion Date I August 2018 1 Project is completed FUNDING SCHEDULE 9142-014 Prior FY To tal Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 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 Prio r FY To tal Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 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 2017/18 Budgeted for Fiscal Year Project Activity Actuals Total 2018/19 2019/20 2020/21 2021/22 2022/23 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 20,990 Revenues &T/I 20,990 - 20,990 - 20,990 Expenditures &T/O - - 20,990 20,990 Ending Balance 20,990 20,990 20,990 - ENDING BALANCE 20,990 20,990 1 20,990 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET • SIDEWALKS CURBS & GUTTERS PROJECTS EL CAMINO GRANDE STORM DRAIN PUMPS 1W . S av cid `mac ro9d< c� oS GdtDS R ��a� 5unnyside Drive _ Oda Storm Drain oe Improvements 111 G�`a��a Project Name El Camino Grande Storm Drain Pump Project Number 9142-015 Department Public Works Project Manager Poh Yee 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 This is the second part of the Monte Vista Drive/El Camino Grande area storm drain improvements.This Background section of the roadway receives a large amount of storm water runoff from Monte Vista Drive and El Camino Grande. In the initial development of the area, no storm drain system was constructed. The increase in home construction led to a decrease in surface area that could absorb water runoff. Without a proper storm drain system in place,flooding could occur resulting in erosion and possible street failure. The drainage issues were partially resolved with the installation of a storm drain pump at Monte Vista Drive. A second pump is needed at El Camino Grande to draw water across Highway 9 to the closest storm drain located near Bountiful Acres Way. In Fiscal Year 2016/17,the estimated costs were revised from$150,000 to$361,000 due to an increase in the scope of the project.The project was partially funded through a$255,000 transfer from the General Fund. For Fiscal Year 2017/18,the project costs were revised from$361,000 to $400,000 due to increases in labor and material costs. A$400,000 allocation from the CIP Reserve funds this project. Operating Engineering and administrative staff costs for project oversight and implementation of$11,384 will be Budget Impacts incorporated into the Fiscal Year 2018/19 operating budget. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET :1 SIDEWALKS CURBS & GUTTERS PROJECTS EL CAMINO GRANDE STORM DRAIN PUMPS PROJECT TIMELINE PROJECT COMPONENTDESCRIPTION Design Phase May 2017 Prepare plans and specifications Begin Bid Process April 2018 Finalize plans and bid project Estimated Construction Start June 2018 Begin Construction Estimated Completion Date October 2018 1 Project Complete FUNDING SCHEDULE 9142-015 Prior FY To tal Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding C IP STREET FUND Transfers In-General Fund 255,000 145,000 400,000 - - - - - 400,000 TOTAL REVENUES 255,000 145,000 400,000 - - - 400,000 Prio r FY To tal Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended CIP STREET FUND Materials &Supplies - 2,267 2,267 - - - - - 2,267 Consultant/Contract Svs 7,493 7,548 15,040 - 15,040 Construction Expenses - 4,425 4,425 378,269 382,694 TOTAL EXPENDITURES 7,493 14,239 21,731 378,269 400,000 Prio r FY To tal Year 2017/18 Budgeted for Fiscal Year Project Activity Actuals Total 2018/19 2019/20 2020/21 2021/22 2022/23 Activity C IP STREET FUND BEGINNING BALANCE 247,508 378,269 - - - - - Revenues &T/I 255,000 145,000 400,000 - 400,000 Expenditures &T/O 7,493 14,239 21,731 378,269 400,000 ENDING BALANCE 247,508 378,269 1 378,269 - I - CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET SIDEWALKS CURBS & GUTTERS PROJECTS LONG TERM TRASH PLAN STORM DRAIN CAPTURE DEVICES CITYWIDE 7 Project Name Long-Term Trash Plan Storm Drain Capture Project Number 9142-017 Devices Department Public Works Project Manager Mainini Cabute Description This project will install 4 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 3 locations on Prospect Road and 1 on Saratoga-Sunnyvale Road near Prospect Road. Project The Municipal Regional Stormwater National Pollutant Discharge Elimination System(NPDES)Permit Background 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.1O.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 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's storm sewer system that are regulated by NPDES Permit requirements. To meet permit requirements, the City proposed installing 15 storm drain full capture devices. The City developed the LTTP using a regionally consistent outline and guidance developed by the Bay Area Stormwater Management Agencies Association(BASMAA) and reviewed by San Francisco Bay Regional Water Quality Control Board staff. A $30,000 allocation from the CIP Reserve funded the purchase of 15 storm drain capture based on initial projections. However, a more detailed analysis of litter hot spots revealed only 4 full-capture devices would be needed. The revised cost estimate is now$13,000. Operating Engineering, administrative and maintenance staff costs for project oversight and implementation of Budget Impacts $799 will be incorporated into the Fiscal Year 2018/19 operating budget. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET SIDEWALKS CURBS & GUTTERS PROJECTS LONG TERM TRASH PLAN STORM DRAIN CAPTURE DEVICES PROJECT TIMELINE PROJECT COMPONENT Project Purchase March 2018 Purchase full capture devices Estimated Completion Date September 2018 Complete installation of capture devices FUNDING SCHEDULE 9142-017 Prior FY Total Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding CIP STREET FUND Transfers In-General Fund 30,000 30,000 - - - - - 30,000 TOTAL REVENUES 30,000 30,000 - - - 30,000 Prio r FY To tal Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended CIP STREET FUND Construction Expenses - - 17,000 - - - - 17,000 Transfers Out 13,000 13,000 - 13,000 TOTAL EXPENDITURES 13,000 13,000 1 17,000 30,000 Prio r FY To tal Year 2017/18 Budgeted for Fiscal Year Project Activity Actuals Total 2018/19 2019/20 2020/21 2021/22 2022/23 Activity CIP STREET FUND BEGINNING BALANCE 30,000 17,000 - - - - - Revenues &T/I 30,000 - 30,000 - 30,000 Expenditures &T/O - 13,000 13,000 17,000 30,000 ENDING BALANCE 30,000 17,000 1 17,0001 - CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET SIDEWALKS CURBS & GUTTERS PROJECTS SARATOGA VILLAGE CROSSWALK& SIDEWALK REHABILITATION i � 4 Project Name Saratoga Village Crosswalk & Sidewalk Project Number 9142-019 Rehabilitation Department Public Works Project Manager Macedonio Nunez Description This project will improve crosswalks and sidewalks in Saratoga Village. Location This project is located in Saratoga Village,between 5th and 6th Streets on Big Basin way. Project The Village, Saratoga's historical downtown, offers a number of shops,restaurants, salons, and office Background space. The City has been making a number of improvements to the Village to make it more walkable destination.These improvements included installation of pedestrian bulb-outs and enhanced crosswalks to make pedestrians more visible, as well as installation of benches, bike racks, and aesthetic improvements and a renovation of Blaney Plaza that make the Village a more desirable place to gather. This project would continue improvements on Big Basin way at 5th Street and 6th Street. Similar to the first phase of the Village Sidewalk & Pedestrian Enhancements, this project would install bulb outs, enhanced crosswalks,decorative landscaping,and benches near 5th Street and 6th Street. An OBAG grant of$338,000 and City matching funds from the CIP Reserve of$44,000 fund this project. Operating Engineering and administrative staff costs for project oversight and implementation of$11,497 will be Budget Impacts incorporated into the Fiscal Year 2018/19 operating budget. Upon completion, the City will be responsible for maintaining additional landscaping,bulb-outs and other features. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET SIDEWALKS CURBS & GUTTERS PROJECTS SARATOGA VILLAGE CROSSWALK& SIDEWALK REHABILITATION PROJECT TIMELINE PROJECT COMPONENT Design Phase August 2010 Minor revisions to Master Plan,if required Contract Awarded March 2019 Award contract for construction Estimated Construction Start June 2019 Begin construction Estimated Construction End Dec 2019 Complete construction Project Closeout Feb 2020 Council authorizes to close project FUNDING SCHEDULE 9142-019 Prior FY To tal Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding C IP STREET FUND Transfers In-General Fund 44,000 44,000 - - - - - 44,000 TOTAL STREET FUND 44,000 44,000 - 44,000 GRANT FUND Federal-CMAQ Grant - 338,000 338,000 TOTAL GRANT FUND - - 338,000 338,000 TOTAL REVENUES 44,000 - 338,000 382,000 Prio r FY To tal Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended C IP STREET FUND Construction Expenses 44,000 - - - - 44,000 TOTAL STREET FUND 44,000 44,000 GRANT FUND Construction Expenses 338,000 338,000 TOTAL GRANT FUND 338,000 338,000 TOTAL EXPENDITURES 382,000 382,000 Prio r FY To tal Year 2017/18 Budgeted for Fiscal Year Project Activity Actuals Total 2018/19 2019/20 2020/21 2021/22 2022/23 Activity C IP STREET FUND Beginning Balance - 44,000 44,000 - - - - 44,000 Revenues &T/I 44,000 - - 44,000 Expenditures &T/O - 44,000 44,000 Improvement Projects 44,000 44,000 - 44,000 CIP GRANT FUND Beginning Balance - - - Revenues &T/I 338,000 338,000 Expenditures &T/O 338,000 338,000 Ending Balance - ENDING BALANCE 44,000 44,000 44,000 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET SIDEWALKS CURBS & GUTTERS PROJECTS QUITO ROAD SIDEWALK IMPROVEMENTS DESIGN •�n m �i 5a c0� 4`r Nnr�hls+` • AW ' L Cox Ave � pevpn Ave m Van a RPWi� a M O d9ry'.� Rho Ave O - Hade:Q^9 ��H1Qd�p.4 yQ Project Name Quito Road Sidewalk Improvements-Design Project Number 9142-020 Department Public Works Project Manager John Cherbone Description This project will fund the design phase of sidewalk improvements on Quito Road. Location This project is located on Quito Road between Highway 85 and Allendale Avenue. Project Quito Road travels from Lawrence Expressway to Highway 9.The road serves as a connection to several Background local schools in Saratoga and nearby cities.Currently,sidewalks are located along the east side of Quito. In 2015 and 2016,the Traffic Safety Commission(TSC)received numerous complaints from residents who felt unsafe walking along Quito Road. Subsequently, the TSC assessed Quito Road and recommended filling sidewalk gaps. The project will include the design of new segments of sidewalk on Quito Road and reconstruction of existing facilities to improve pedestrian safety and access in the area. A$50,000 allocation from the CIP reserve initially funds the design phase of this project. The design phase includes a topographical plan of the area. Depending on the outcome of the topography work, staff may be able to complete design in-house. However,if a contract consultant completes design,then costs are estimated at $150,000. The construction phase of this project is currently on the Unfunded Projects list. Operating Engineering and administrative staff costs for project oversight and implementation of$681 will be Budget Impacts incorporated into the Fiscal Year 2018/19 operating budget. CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET :! SIDEWALKS CURBS & GUTTERS PROJECTS QUITO ROAD SIDEWALK IMPROVEMENTS DESIGN PROJECT TIMELINE PROJECT COMPONENT Begin Design Phase July 2019 Begin design phase and award design contract Estimated Start Date August 2019 Begin design phase End Design Phase January 2020 Complete design phase FUNDING SCHEDULE 9142-020 Prior FY Total Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding C IP STREET FUND Transfers In-General Fund 50,000 50,000 - - - - - 50,000 TOTAL REVENUES 50,000 - - 50,000 Prior FY Total Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended C IP STREET FUND Consultant/Contract Svs 7,370 7,370 - - - - - 7,370 Construction Expenses - - 42,630 42,630 TOTAL EXPENDITURES 7,370 42,630 50,000 Prio r FY To tal Year 2017/18 Budgeted for Fiscal Year Project Activity Ac tuals To tal 2018/19 2019/20 2020/21 2021/22 2022/23 Activity C IP STREET FUND Beginning Balance - 42,630 42,630 - - - - 42,630 Revenues &T/I 50,000 - - 50,000 Expenditures &T/0 7,370 42,630 50,000 ,Improvement Projects 42,630 1 42,630 - 1 42,630 ENDING BALANCE 42,630 1 42,6301 1 42,630 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET SIDEWALKS CURBS & GUTTERS PROJECTS 1956 e�trfioR��� CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET :: UTILITY UNDERGROUNDING PROJECTS BRIDGE & RETAINING WALL PROJECTS CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET :' UTILITY UNDERGROUNDING PROJECTS FOURTH STREET BRIDGE WIDENING w. �e ,en <Q• e Qi�nO 5 Wildwood Park F t 4a v� h� -H� Project Name Fourth Street Bridge Widening Project Number 9152-001 Department Public Works Project Manager Macedonio Nunez Description This project will fund the preliminary engineering and environmental, right-of-way acquisition, and construction phases of widening the 4th Street bridge in Saratoga. Location This project is located on 4th Street near Wildwood Park in the Saratoga Village. Project The 4th Street Bridge was constructed in 1939 and crosses Saratoga Creek near the entrance to Wildwood Background Park. This project will widen the bridge to accommodate a sidewalk for pedestrian traffic, as well as make structural improvements to bring the bridge in compliance with current standards. A California Department of Transportation review of Saratoga bridges in 2004 listed the 4th Street Bridge as being in"generally good condition". There are 20 bridges located in the City. Nine of these bridges pass over Saratoga Creek. A $487,000 Federal Highway Bridge Replacement and Rehabilitation (HBRR) program grant and $100,000 allocation from the CIP Reserve currently fund this project. This project will be completed in three phases;preliminary engineering and environmental,right-of-way acquisition,and construction with an estimated cost of$1.41 million. The Preliminary Engineering and Environmental phase will include survey work, constraint analysis, environmental review and design with an estimated cost of$$284,829. The Right-of-way acquisition phase will include the acquisition, or obtaining rights to access property needed to widen the bridge,with an estimated cost of$11,147. The Construction phase will include work on widening the bridge with an estimated cost of$1,114,700. The project has sufficient funding for the preliminary engineering and environmental, right-of-way acquisition,and a small portion of the construction phase.Additional funding will be needed to complete the construction phase of this project. Operating There will be no impact to the Fiscal Year 2018/19 operating budget. Budget Impacts FOURTH STREET BRIDGE WIDENING CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET '1 UTILITY UNDERGROUNDING PROJECTS PROJECT TIMELINE PROJECT COMPONENTi DESCRIPTION Begin Design Phase May 2018 Prepare plans andspecifications Right of Way Acquisition October 2019 Complete right of way negotiations and acquisition Begin Bid Process January 2020 Council approves plans and authorizes bidding the project Contract Award March 2020 Council awards contract Estimated Construction Start June 2020 Construction pro'ect begins Estimated Completion Date August 2021 Project is completed FUNDING SCHEDULE 9152-001 Prior FY Total Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding C IP STREET FUND Transfers In-General Fund 100,000 100,000 - - - - - 100,000 TOTAL STREET FUND 100,000 100,000 - 100,000 GRANT FUND Federal-11BRR 1,078 1,258 2,336 484,664 487,000 TOTAL GRANT FUND 1,078 1,258 2,336 484,664 487,000 TOTAL REVENUES 101,078 1,258 102,336 484,664 587,000 Prior FY Total Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended C IP STREET FUND Site Acquisition&Prep 791 - - - - 791 Consultant/Contract Svs 20,158 20,158 Construction Expenses 78,889 78,889 Reimbursable Expenses 162 162 - 162 TOTAL STREET FUND 162 162 99,838 100,000 GRANT FUND Site Acquisition&Prep - - - 3,850 3,850 Consultant/Contract Svs 1,078 - 1,078 99,248 100,326 Construction Expenses - 1,258 1,258 381,567 382,824 TOTAL GRANT FUND 1,078 1,258 2,336 484,664 487,000 TOTAL EXPENDITURES 1,078 1,420 2,336 584,502 587,000 Prior FY Total Year 2017/18 Budgeted for Fiscal Year Project Ac tivity Ac tuals To tal 2018/19 2019/20 2020/21 2021/22 2022/23 Ac tivity C IP STREET FUND Beginning Balance 100,000 99,838 - - - - - Revenues &TA 100,000 - 100,000 - 100,000 Expenditures &T/O - 162 162 99,838 100,000 ENDING FUND BALANCE 100,000 99,838 99,838 - - GRANT FUND Beginning Balance - - - Revenues &T/I 1,078 1,258 2,336 484,664 487,000 Expenditures &T/O 1,078 1,258 2,336 484,664 487,000 ENDING FUND BALANCE - - ENDING BALANCE 100,000 99,838 99,838 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' UTILITY UNDERGROUNDING PROJECTS QUITO ROAD BRIDGE Sobey Road 11 t6 t p 0 a ap o` Vessinq Road Project Name Quito Road Bridges Project Number 9152-002 Department Public Works Project Manager Macedonio Nunez Description This project funds the preliminary engineering and environmental and construction phases of the 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 The California Department of Transportation (Caltrans) conducted a structural assessment of the two Background 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 area 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 through a co-operative agreement between the Santa Clara Valley Water District, Los Gatos,and Saratoga. Design work is complete. The City is now in the process of acquiring right-of-way from residential properties before construction can commence. Operating Engineering and administrative staff costs for project oversight and implementation of$7,296 will be Budget Impacts incorporated into the Fiscal Year 2018/19 operating budget. CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET UTILITY UNDERGROUNDING PROJECTS QUITO ROAD BRIDGE PROJECT TIMELINE PROJECT COMPONENT Begin Design Phase January 2013 Prepare plans and specifications End Design Phase October 2014 Plans and specifications complete Contract Award April 2018 Council awards contract Estimated Construction Start July 2018 Construction project begins(pending right-of-way acquisitions) Estimated Completion Date August 2019 Project is completed FUNDING SCHEDULE 9152-002 Prior FY Total Year 2017/18 Funded Budgeted for Fiscal Year Project REVENUES Funded Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Funding CIP STREET FUND Project Reimbursements 188,318 188,318 77,510 - - - - 265,828 Transfers In-Other CIP 15,023 15,023 - 15,023 Transfers In-General Fund 155,659 155,659 155,659 TOTAL 358,999 358,999 77,510 436,510 GRANT FUND Federal-FIBRR 671,600 671,600 671,600 TOTAL 671,600 671,600 671,600 GAS TAX FUND Gas Tax Revenues 129,000 129,000 129,000 TOTAL 129,000 129,000 129,000 TOTAL REVENUES 1,159,599 1,159,599 77,510 1,237,109 Prior FY Total Year 2017/18 Expended Budgeted for Fiscal Year Project EXPENDITURES Expended Actuals To Date 2018/19 2019/20 2020/21 2021/22 2022/23 Expended C IP 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 459237 45,237 C ons truc tion Expens e s 89,333 89,333 235,340 324,673 Reimbursable Expenses 714 714 - 714 Transfers Out 45,880 45,880 - 45,880 TOTAL 201,169 201,169 235,340 436,510 GRANT FUND Site Acquisition&Prep 104,313 104,513 - 104,S13 Materials &Supplies 660 660 660 Fees &Expenses 207 207 207 Consultant/Contract Svs 182,798 182,798 182,798 Construction Expenses 366,685 366,685 366,685 Reimbursable Expenses 16,736 16,736 16,736 TOTAL 671,601 671,600 671,600 GAS TAX FUND Site Acquisition&Prep 11,375 11,375 11,375 Materials &Supplies 87 87 87 Fees &Expenses 413 413 413 Consultant/Contract Svs 110,039 110,039 1109039 Construction Expenses - - 7,085 79085 TOTAL 121,915 121,915 7,085 129,000 TOTAL EXPENDITURES 994,685 994,684 242,425 1,237,109 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET UTILITY UNDERGROUNDING PROJECTS QUITO ROAD BRIDGE FUNDING SCHEDULE—CONTINUED 9152-002 Prior FY Total Year 2017/18 Budgeted for Fiscal Year Project Activity Actuals Total 2018/19 2019/20 2020/21 2021/22 2022/23 Activity CIP STREET FUND Beginning Balance 157,830 157,830 - - - - Revenues &T/I 358,999 - 358,999 77,510 436,510 Expenditures &T/O 201,169 - 2019169 235,340 4369510 Improvement Projects 157,830 157,830 157,830 - GRANT FUND Beginning Balance - - Revenues &T/I 671,600 671,600 671,600 —Expenditures &T/O 671,601 6719601 6719600 ENDING FUND BALANCE - - - GAS TAX FUND Beginning Balance 7,085 7,085 - Revenues &T/I 129,000 - 129,000 - 129,000 Expenditures &T/O 121,915 - 121,915 7,085 129,000 ENDING FUND BALANCE 7,085 7,085 7,085 - ENDING BALANCE 164,915 164,915 1579 830 CITY OF SARATOGA 9 FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' UTILITY UNDERGROUNDING PROJECTS 1956 e�trfioR��� CITY OF SARATOGA • FISCAL YEAR 2018/19 OPERATING&CAPITAL BUDGET ' UTILITY UNDERGROUNDING PROJECTS QUITO ROAD BRIDGE - ROW ACQUISITION CITYWIDE Project Name Quito Road Bridges-ROW Acquisition Project Number 9152-004 Department Public Works Project Manager Macedonio Nunez Description This project funds the fair market value acquisition of a minimal amount of right of way easements. Location This project is located on two sections of Quito Road along the border of Saratoga with Los Gatos. Project The California Department of Transportation(CalTrans) conducted a structural assessment of the two Background bridges on Quito Road and rated them in need of replacement. Additionally, the bridges are not wide enough to meet current CalTrans standards for roadway use. This project will rebuild the bridges, br