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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 funded by $132,850,958 of revenues and $15,994,277 of fund balance. On November 16, 2021, Council received the City Manager's First Quarter Financial Report, which revised the budget to account for encumbrances of $16,868,361 million and carryover appropriations of $53,863,626 million from FY 2021-22. The carryover appropriations included $18.5 million in capital projects, $19 million for Vallco Town Center (renamed The Rise), and $5.9 million for Transportation projects. Encumbrances represent funds for obligations related to unfilled purchase orders or unfilled contracts rolled over from one year to the next until those obligations are fulfilled or terminated. Carryover appropriations are unencumbered funds for unfinished projects carried over to the following fiscal year to complete those projects. In the first three quarters of FY 2021-22, Council approved $19.0 million in additional appropriations, mostly related to the American Rescue Plan Act of 2021 ($4.9 million), I-280 Trail ($1.9 million), First Quarter Adjustments ($1.6 million), and Mid-Year Adjustments ($10.0 million). With carryovers, encumbrances, and Council-approved adjustments, the amended budget is $238,620,305.
Amended Budget
2021-22Adopted Budget 2021-22 Amended BudgetQ1
2021-22 Amended BudgetQ2
2021-22 Amended BudgetQ3
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CITY OF CUPERTINO
FY 2021-22 Third Quarter ReportThe following is the Third Quarter Financial Report, submitted by the Administrative Services Department for the period January 1, 2022 to March 31, 2022 of Fiscal Year (FY) 2021-22. It has been prepared to inform the City Council, City leadership, and the public of the City’s fiscal status.
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. 2018-19 Amended BudgetQ4
March 2018-19 Actual
2019-20 Amended BudgetQ4
March 2019-20 Actual
2020-21 Amended BudgetQ4
March 2020-21 Actual
2021-22 Amended BudgetQ4
March 2021-22 Actual
Fiscal Year Through March (cumulative amounts)
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$5,583,966.55Revenues Less Expenses in Mar 2022
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$22,344,967.16Revenues Less Expenses in Jun 2021
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General Fund Revenue and Expenditure Trends
As of March 31, 2022, General Fund expenditures are $77.9 million; this represents 58% of budgeted appropriations. Expenditures at the Third Quarter point of the prior three years were between 67% and 75% of budgeted expenditures, placing this year below the range. General Fund revenues are $73.1 million; this represents 62% of the budgeted revenue. Revenues at the Third Quarter point of the prior three years were between 58% and 77% of budgeted revenues, placing this year within the range.
General Fund Revenues - Third Quarter Budget vs Actuals Data Updated 5 days ago
3/20193/20203/20213/2022
62.02%In Revenues of $134,543,590.00 Budgeted through Mar 2022 General Fund Expenditures - Third Quarter Budget vs Actuals Data Updated 5 days ago
3/20193/20203/20213/2022
57.90%In Expenses of $134,469,314.00 Budgeted through Mar 2022 As of Third Quarter, General Fund revenue is $83.4 million, an increase of $10.4 million (or 14%) from last year due to a one-time transfer related to the American Rescue Plan Act. Additionally, transient occupancy tax revenue is $1.0 million, or 81%, higher than last year as travel rebounds due to the relaxation of pandemic-based restrictions. As of Third Quarter, General Fund expenditures are $77.9 million, an increase of $15.0 million (or 24%) compared to last year. Transfers increased due to transfers to allocate American Rescue Plan Act funding to departments and transfers to the Capital Reserve.
General Fund Revenues Less Expenses at Third-Quarter General Fund Revenues Less Expenses at Year End $83,438,962.07Revenues in Mar 2022
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$77,854,995.52Expenses in Mar 2022
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$83,438,962.07Revenues in Mar 2022
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$77,854,995.52Expenses in Mar 2022
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OtherEmployee Ben...
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General Fund Classification of Fund Balance
The City's General Fund ended FY 2020-21 with $96.9 million in total fund balance. As of the First Quarter Report, the City updated its FY 2021-22 year-end projections to $111.9 million in total fund balance, increasing $28.8 million due to increased revenues and lower expenditures in FY 2020-21. As of the Mid-Year Financial Report, the City updated its FY 2021-22 year-end projections to $101.8 million in total fund balance due to a one-time transfer of $10 million to the Capital Reserve Fund. The City also transferred funds from unassigned to other classifications within the General Fund: $2 million to the Section 115 Pension Trust (restricted), $5 million to the Economic Uncertainty Reserve (committed), and $10 million to a new Capital Projects Reserve (committed). Year-end fund balance as of Third Quarter FY 2021-22 is projected to be $110.7 million, an increase of $8.9 million (or 9%). The increase is due to higher sales tax revenue estimates.
General Fund Revenues - Third Quarter vs Year End Actual General Fund Expenditures - Third Quarter vs Year End Actual General Fund Revenues by Type General Fund Expenses by Type Recommended Adjustments
As of the third quarter, a few departments are requesting budget adjustments to ensure they end the year within budget appropriations. The recommended adjustments are summarized below.
$9,448,487.00Funds in 2022
General Fund
Capital Impr...
$529,935.00Funds in 2022
General Fund
Transportati...Blackberry F...
Capital Impr...
$9,448,487.00Departments in 2022
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Capital Proj...Community De...
$529,935.00Departments in 2022
Community De...
Capital Proj...
Public WorksParks and Re...
Non Departme...
Summary
The Third Quarter Financial Report shows the City is well-positioned to move forward. City staff recommends adjustments of $529,935 in new appropriations funded by $9,448,487 in new revenues. If approved, the City's fund balance across all funds will increase by $8,918,552.
City of Cupertino, California
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Revenue Adjustments by Fund Expense Adjustments by Fund Revenue Adjustments by Department Expense Adjustments by Department