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Background
On June 15, 2021, the City Council adopted the Fiscal Year (FY) 2021-22 Budget, a $148,845,235 spending plan for the City of Cupertino that was funded by $132,850,958 of revenues and $15,994,277 of fund balance. On November 16, 2021, Council received an update on the City’s spending plan as part of the City Manager’s First Quarter Financial Report, which revised the budget to account for encumbrances of $16,868,361 and carryover appropriations of $53,863,626 from FY 2021-22. These carryover appropriations included $18.5 million in capital projects, $19 million for Vallco Town Center, and $5.9 million for Transportation projects. Encumbrances represent funds for obligations related to unfilled purchase orders or unfilled contracts that are rolled over from one year to the next until those obligations are fulfilled or terminated. Carryover appropriations are unencumbered funds for unfinished projects that are carried over for use in the following fiscal year in order to complete those projects. In the first two quarters of FY 2021-22, Council approved $9.6 million in additional appropriations mostly related to the American Rescue Plan Act of 2021 ($4.9 million), Junipero Serra Trail ($1.9 million) and First Quarter Adjustments ($1.6 million). This resulted in an amended budget of $229,162,354.
Amended Budget
CITY OF CUPERTINO
FY 2021-22 Mid-Year Financial ReportThe following is the Mid-Year Financial Report, submitted by the Administrative Services Department for the period of July 1, 2021 to December 31, 2021 for the 2021-22 Fiscal Year. It has been prepared to inform the City Council, City leadership and the public of the City’s fiscal status. 2021-22 Adopted Budget 2021-22Amended BudgetQ1
2021-22 Amended BudgetQ2
Fiscal Year
0.0 50.0M
100.0M
150.0M
200.0M
Dollars
Public Works
Capital Projects
Community Development
Non Departmental
Law Enforcement
Parks and Recreation
Administration
Administrative Services
Innovation & Technology
Council and Commissions
Flow of Funds Chart (in Millions)
General Fund Revenues, Expenditures, and Fund Balance
To date the City’s financial statement audit has yet to be issued and revenue, expenditure, and fund balance totals listed in this report are preliminary and subject to change after a full review by the City’s auditors. City staff does not anticipate many if any changes from the auditors. 2017-18 Amended BudgetQ2
December 2017-18 Actual
December 2018-19 Actual
2019-20 Amended BudgetQ2
June 2019-20 Actual
December 2020-21 Actual
2021-22 Adopted Budget December2021-22 Actual
Fiscal Year
0.0 100.0M
25.0M
50.0M
75.0M
125.0M
Dollars
Revenues
Expenses
SortLarge to Small
-$4,563,298.35Revenues Less Expenses in Dec 2021
-$20M
-$15M
-$10M
-$5M
$0
$5M
$10M
Dec 2017 Dec 2019 Dec 2021
$22,115,206.66Revenues Less Expenses in Jun 2021
-$5M
$0
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$10M
$15M
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$25M
Jun 2018 Jun 2019 Jun 2020 Jun 2021
General Fund Revenue and Expenditure Trends
As of December 31, 2021, General Fund expenditures are $50.5 million; this represents 41% of budgeted appropriations. Expenditures at the mid-year point of the prior three years ranged between 44% and 62% of the final actual expenditures which places current mid-year actuals slightly below the range. General Fund revenues are at $46.0 million; this represents 34% of the budgeted revenue. Revenues at the mid-year point of the prior three years were between 34% and 44%, placing this year within the range. Staff will continue to monitor its leading revenue sources as the year progresses.
General Fund Revenues - Expenses at Mid-Year General Fund Revenues - Expenses at Year End General Fund Revenues - Mid-Year Actuals vs Budget
Data Updated today
12/201712/201812/201912/202012/2021
34.17%In Revenues of $134,543,590.00 Budgeted through Dec 2021 General Fund Expenses - Mid-Year Actuals vs Budget
Data Updated today
12/201712/201812/201912/202012/2021
40.60%In Expenses of $124,469,314.00 Budgeted through Dec 2021 $45,974,707.03Revenues in Dec 2021
$0
$20M
$40M
$60M
$80M
$100M
$120M
Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021
$50,538,005.38Expenses in Dec 2021
$0
$20M
$40M
$60M
$80M
$100M
Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021
$45,974,707.03Revenues in Dec 2021
Sales Tax
Property Tax
Other
Intergovernm...
Transfers In
Charges for ...
$50,538,005.38Expenses in Dec 2021
Transfers Ou...
Contract Ser...
OtherEmployee Ben...
Cost Allocat...
Employee Com...
General Fund Classification of Fund Balance
Projected year-end fund balance as of mid-year FY 2021-22 is estimated to be $101.8 million. The $101.8 million projection includes a one-time transfer out of $10 million to the Capital Improvement Program Reserve Fund, a $2 million contribution to the Section 115 Pension Trust, an increase to the Economic Uncertainty Reserve from $19 million to $24 million, and the establishment of a $10 million Committed Capital Projects Reserve. If approved, projected ending unassigned fund balance will be $37.2 million. To date, the City’s outside auditors have not completed their review of the City’s financials. Revenue, expenditure, and fund balance totals listed in this report are preliminary and subject to change after a full General Fund Revenues - Mid-Year vs Year End Actuals General Fund Expenses - Mid-Year vs Year End Actuals General Fund Revenues by Type General Fund Expenses by Type review by the City’s auditors. City Staff does not anticipate many, if any, changes from the auditors.
Recommended Adjustments
As of Mid-Year, departments are requesting budget adjustments to ensure they end the year within budget appropriations. The recommended adjustments are summarized in the table below:
$10,220,000.00Funds in 2022
Capital Impr...
Blackberry F...
$9,457,951.00Funds in 2022
General Fund
OtherBlackberry F...Vehicle/Equi...Resource Rec...Park Dedicat... $10,220,000.00Departments in 2022
Non Departme...
Parks and Re...
$9,457,951.00Departments in 2022
Non Departme...
Capital Proj...Parks and Re...Public Works
Summary
The Mid-Year Financial Report shows the City is well-positioned to move forward. City staff recommend adjustments of $9,457,951 in new appropriations funded by $10,220,000 in revenues. If approved, the City’s fund balance will increase by $762,049.
City of Cupertino, California
Cupertino City Hall10300 Torre AvenueCupertino, CA 95014-3202 View the City Council Meeting AgendaView the City's BudgetsView the City's Financial Transparency Portal Powered by OpenGov
Revenue Adjustments by Fund Expense Adjustments by Fund Revenue Adjustments by Department Expense Adjustments by Department