This Financial Report is interactive. Click on a chart to learn more.
Background
On June 9, 2022, the City Council adopted the Fiscal Year (FY) 2022-23 Budget, a $130,587,325 spending plan funded by $130,244,157 in revenue and $343,168 in fund balance. The FY 2022-23 Adopted Budget reflected a $5.1 million increase from the FY 2022-23 Proposed Budget, mainly due to operating changes, the City Work Program, and the Capital Improvement Program. As described in the City Manager’s First Quarter Financial Report presented to the City Council on November 15, 2022, the budget was revised to account for encumbrances and carryover appropriations. As part of the FY 2021-22 year-end close, additional funds were carried forward from FY 2021-22 to FY 2022-23 due to encumbrances of $13,280,075 and carryover appropriations of $65,916,968. The largest encumbrances were for capital projects ($7.4 million) and The Rise (formerly known as Vallco Town Center) ($2.3 million), while the largest carryovers were for capital projects ($34.3 million) and The Rise ($19.7 million). The City Council approved $6.0 million in additional appropriations during the first three quarters of FY 2022-23. This includes $2.4 million for negotiated amendments to the City's employee compensation programs, $0.7 million for the Memorial Park Specific Plan, $0.7 million for vehicle and equipment replacement as part of the First Quarter Financial Report, and $0.6 million for the Housing Element. As a result of these budget adjustments, encumbrances, and carryovers, the amended budget as of March 31, 2023, totaled $215,768,924.
Amended Budget
CITY OF CUPERTINO
FY 2022-23 Third Quarter ReportThe following is the Third Quarter Financial Report, submitted by the Administrative Services Department for the period July 1, 2022 to March 31, 2023 of Fiscal Year (FY) 2022-23. It has been prepared to inform the City Council, City leadership, and the public of the City’s fiscal status. 2022-23 Adopted Budget 2022-23Amended BudgetQ1
2022-23Amended BudgetQ2
2022-23Amended BudgetQ3
Fiscal Year
0.0 50.0M
100.0M
150.0M
200.0M
Dollars
Public Works
Capital Projects
Community Development
Law Enforcement
Non Departmental
Parks and Recreation
Administrative Services
Administration
Innovation & Technology
Council and Commissions
Flow of Funds Chart (in Millions)
General Fund Revenues, Expenditures, and Fund Balance
The chart below shows amended budget, third quarter, and year-end revenues and expenditures. The General Fund's historical financial data indicates that amended expenditures have often exceeded amended revenues, leading to a decrease in fund balance. This decrease in fund balance was not due to a structural deficit; rather, the City transferred excess fund balance from the General Fund to the Capital Reserve as part of its Fund Balance Policy. The City's encumbrance and budget carryover process has resulted in increases to fund balance at the end of most fiscal years. By continuing to monitor and manage its financial resources effectively, the City can ensure that it maintains a healthy fund balance in the General Fund.
March 2019-20Actual
2020-21 Amended BudgetQ3
June 2020-21 Actual
March 2021-22Actual
2022-23 Adopted Budget March 2022-23 Actual
Fiscal Year
0.0 100.0M
25.0M
50.0M
75.0M
125.0M
Dollars
Revenues
Expenses
$1,121,676.29Revenues Less Expenses in Mar 2023
-$5M
$0
$5M
$10M
$15M
Mar 2020Mar 2021Mar 2022Mar 2023
$13,318,751.39Revenues Less Expenses in Jun 2022
$0
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$25M
Jun 2020Jun 2021Jun 2022
General Fund Revenue and Expenditure Trends
As of March 31, 2023, the General Fund has spent $67.5 million, which accounts for 53% of the total budgeted appropriations. This spending level is lower than the range of expenditures at the Third Quarter point of the prior three years, which were between 67% and 75% of the budgeted expenditures. On the revenue side, the General Fund has generated $68.7 million, which represents 51% of the budgeted revenue. This revenue level is also lower than the range of revenues at the Third Quarter point of the prior three years, which were between 58% and 77% of the budgeted revenues.
General Fund Revenues Less Expenses at Third-QuarterGeneral Fund Revenues Less Expenses at Year End General Fund Revenues - Third Quarter Budget vs Actuals Data Updated Apr 28, 2023, 12:05 PM
3/20203/20213/20223/2023
51.18%In Revenues of $134,163,396.00 Budgeted through Mar 2023 General Fund Expenditures - Third Quarter Budget vs Actuals Data Updated Apr 28, 2023, 12:05 PM
3/20203/20213/20223/2023
52.84%In Expenses of $127,836,668.00 Budgeted through Mar 2023 As of March 31, 2023, General Fund revenue is tracking at $16.3 million, or 19%, lower than the same time last year primarily due to decreases in sales tax revenue and the recognition of American Rescue Plan Act revenue last year. General Fund expenditures are down $10.3 million, or 13%, when compared to the same time last year due to the one-time transfer of funds to General Fund departments as part of the American Rescue Plan Act funding strategy as well as a Mid-Year transfer to the Capital Reserve in FY 2021-22. $68,668,712.34Revenues in Mar 2023
$0
$20M
$40M
$60M
$80M
$100M
$120M
Jun 2020 Jun 2021 Mar 2023
$67,547,036.05Expenses in Mar 2023
$0
$20M
$40M
$60M
$80M
$100M
Jun 2020 Jun 2021 Mar 2023
$68,668,712.34Revenues in Mar 2023
Sales Tax
Property Tax
Other
Licenses and...
Transient Oc...
Charges for ...
$67,547,036.05Expenses in Mar 2023
Contract Ser...
Employee Com...
Other
Employee Ben...
Cost Allocat...
Transfers Ou...
General Fund Revenues - Third Quarter vs Year End ActualGeneral Fund Expenditures - Third Quarter vs Year End Actual General Fund Revenues by Type General Fund Expenditures by Type General Fund Classification of Fund Balance
The City’s General Fund ended FY 2020-21 with $96.9 million in total fund balance. Staff anticipates the General Fund will end FY 2021-22 with $110.0 million in fund balance, an increase of $13.1 million from the prior year, due to revenues being higher than expenditures. At mid-year, staff projected the General Fund to end FY 2022-23 with $121.5 million in fund balance. As of third quarter, the General Fund is expected to end FY 2022-23 with $122.4 million in fund balance, with $64.1 million in unassigned fund balance.
Recommended Adjustments
As of the third quarter, some departments are requesting budget adjustments to ensure that they stay within their budget appropriations by year-end. In addition, staff is also recommending defunding some Capital Improvement Program (CIP) projects and increasing revenue in some categories to better align year-end actuals with the budget. The recommended adjustments are summarized below.
$4,902,598.00Funds in 2023
Retiree Medi...
Blackberry F...Sports Cente...Recreation P...
General Fund
-$2,758,528.00Funds in 2023
General FundSports Cente...Blackberry F...Recreation P...Transportati...
Other
$4,902,598.00Departments in 2023
Administrati...
Public Works
Parks and Re...
Non Departme...
-$2,758,528.00Departments in 2023
Public WorksParks and Re...
Capital Proj...
Summary
Based on the Third Quarter Financial Report, the City's current financial position is stable. City staff recommends a decrease of $2,758,528 to appropriations and an increase of $4,902,598 to revenues, which would increase fund balance by $7,661,126. The City will continue to monitor its revenue and expenditure trends closely to ensure it remains on track toward achieving its budgetary goals and objectives.
City of Cupertino, California
Cupertino City Hall10300 Torre AvenueCupertino, CA 95014-3202 View the City Council Meeting AgendasView the City's BudgetsView the City's Financial Transparency Portal Powered by OpenGov
Revenue Adjustments by FundExpenditure Adjustments by Fund Revenue Adjustments by DepartmentExpenditure Adjustments by Department