Saratoga Mayor Chuck Page has highlighted the growing financial pressure of policing costs in his city, noting that expenses are rising faster than local tax revenues can support. He pointed to a recent five-year agreement with the Santa Clara County Sheriff’s Office as a primary example, with the contract costing $10.9 million for the 2026-27 fiscal year.
That figure represents a 21 percent increase over the previous year. Page noted that while Saratoga’s per capita policing cost remains lower than many other municipalities, the rapid rate of increase is difficult for the city to absorb within its existing budget constraints.
The mayor explained that Saratoga relies heavily on property tax revenue to fund municipal services. Following the implementation of Proposition 13 in 1978, the city was allocated approximately 6.5 percent of collected property taxes. However, between 1978 and 2014, that share was reduced to 3.5 percent due to state legislative actions. A budget trailer bill in 2014 allowed Saratoga to gradually recapture the lost percentage.
Today, the city supplements its roughly 6.5 percent property tax share with gas tax revenue and approximately $1 million annually from sales taxes. These funds cover law enforcement, staff salaries, streets, parks, and infrastructure maintenance. Page illustrated the limited revenue by noting that a household in a newly purchased $3 million home contributes about $1,950 per year to the city’s general fund.
In response to the rising costs, Saratoga is evaluating alternative law enforcement providers, including the Los Gatos Monte Sereno Police Department. The city has contracted with the Santa Clara County Sheriff’s Office for 70 years, but other local jurisdictions like Cupertino and Los Altos Hills are also facing similar cost increases due to county-wide shifts toward total cost recovery models.