City council Staff Report
Meeting: February 21, 2024
Subject
Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2023-24 Recommended Action
Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2023-24 Adopt Resolution No. 24-XXX approving Budget Modification No. 2324-326, increasing appropriations by $10,057 and revenues by $807,672.
Executive Summary
The Mid-Year Financial Report for Fiscal Year (FY) 2023-24 outlines the City’s financial status as of December 31, 2023. The FY 2023-24 Amended Budget is $208.1 million, increasing from an adopted budget of $121.8 million due to carryovers and encumbrances from the last fiscal year, in addition to Council-approved budget adjustments.
In the first quarter of FY 2023-24, revenue was $4.1 million, or 9% lower than last year, primarily attributed to drops in sales tax, intergovernmental, and transfers, while expenditures were $3.7 million, or 7% lower than last year, primarily due to decreases in transfers and salaries and benefits.
Key recommendations from the report include the following proposed budget adjustments:
Increase revenues by $12,414 and appropriations by $10,057 to account for Hidden Treasures proceeds.
Increase revenues by $795,258 for Utility User Tax revenue adjustments.
Reasons for Recommendation
Background
On June 6, 2023, the City Council adopted the FY 2023-24 Adopted Budget, a $121.8 million spending plan funded by $110.2 million in revenue and $11.6 million in fund balance. The adopted budget reflected a $4.0 million increase from the proposed budget, mainly due to the Capital Improvement Program, which is presented in parallel with the Operating Budget and combined once both were approved.
As described in the City Manager’s First Quarter Financial Report, the budget was revised to account for encumbrances and carryover appropriations. As part of the FY 2022-23 year-end close, additional funds were carried forward to FY 2023-24, amounting to $17.1 million in encumbrances and $64.0 million in carryover appropriations. The largest encumbrances were for capital projects ($3.8 million), while the largest carryovers were also for capital projects ($31.0 million) and The Rise ($19.1 million).
Furthermore, the FY 2023-24 Amended Budget includes Council-approved budget adjustments from July 1 to December 31, 2023, totaling $5.2 million. It included $0.5 million in first-quarter adjustments, $0.2 million for a community resilience grant for EV chargers, and $4.4 million for capital projects and transfers.
The amended budget at the end of mid-year is $208.1 million, funded with $152.0 million in revenue and $56.1 million in fund balance. The amended budget is the adopted budget, plus encumbrances, carryovers, and Council-approved budget adjustments. The reflection of carryovers and encumbrances in the amended budget is a standard practice in municipal budgeting and aligns with the amounts in previous years, which have been approximately $80 million. Carryovers and encumbrances are appropriations approved in prior years but have not yet been spent and are still required for ongoing projects or obligations.
Mid-Year Summary of Budget Adjustments by Fund
For detailed descriptions of the budget adjustments, please refer to Attachment C.
Discussion
The Mid-Year Financial Report, reported as of December 31, 2023, is a critical tool for the City to evaluate its current revenue outlook and make necessary adjustments to the budget in response to changing spending priorities. It provides an overview of the City's budget status, including its revenue outlook, expenditure patterns, and other key financial metrics. Additionally, the report helps the City ensure that it stays on track toward achieving its goals and objectives by providing valuable insights into the City's financial performance. By using this information to make informed decisions and take appropriate actions, the City can maintain its fiscal sustainability.
There are minimal requests for funding at mid-year. The City will continue to closely monitor revenue and expenditure trends in the coming months. This ongoing analysis is critical to ensuring that the City's budget remains responsive to the needs of its constituents and is aligned with the City's goals and objectives. By proactively managing its budget, the City can remain fiscally responsible and provide essential services and programs to its community.
General Fund
4-Year Comparison of Revenues, Expenditures, and Changes to Fund Balance ($ in millions)
The General Fund's historical revenues, expenditures, and fund balance demonstrate that expenditures have often exceeded revenues in the amended budget. However, year-end actuals show that the City’s revenues have historically exceeded expenditures, leading to the increase in fund balance. Historically, when this was not the case, it was not due to a structural deficit but the transfer of excess fund balance from the General Fund to the Capital Reserve per the City's Fund Balance policy. Due to the City's encumbrance and budget carryover process, fiscal years have generally ended with increases in fund balance. Beginning in FY 2023-24, the loss of $30 million in sales tax revenue from a California Department of Tax and Fee Administration (CDTFA) audit of a taxpayer will result in a structural deficit, with ongoing revenues below ongoing expenditures.
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.
Revenue
General Fund revenue is $4.1 million, or 9%, lower than the same time last year due to changes in the City’s revenue sources as shown in the following table.
Comparison of FY 2022-23 and FY 2023-24 Mid-Year Revenues General Fund
Sales Tax revenue as of mid-year was $15.9 million, which is a 12% decrease from the previous year. This decline was primarily due to the timing of payments from the California Department of Tax and Fee Administration (CDTFA), which are received two months in arrears. To provide some context, sales tax revenues for FY 2022-23 correspond to July to December 2022, while revenues for FY 2023-24 correspond to July to November 2023.
For FY 2023-24, the City budgeted $11.4 million in sales tax revenue, a significant reduction from prior years as the CDTFA audit of a taxpayer was projected to result in a $30 million loss in sales tax revenue. In October, the City received a letter from the CDTFA confirming the loss in sales tax; the CDTFA determined that the sales tax reported by the taxpayer was significantly overstated to the City, requiring the sales tax to be reallocated to other jurisdictions beginning April 2021 and continuing onwards. However, the taxpayer continues to allocate the sales tax to Cupertino, resulting in the City continuing to receive sales tax revenue in dispute. Due to the uncertainty surrounding these revenues, the disputed sales tax revenue will be set aside in a designated Sales Tax Repayment Reserve.
Property Tax revenue increased by $301,000, or 3%, compared to last year. In FY 2023-24, the City’s property tax roll grew $1.411 billion, or 4.57%, year-over-year, compared to 6.65% for the county.
As of June 2023, statewide home sales volume has declined for the last 9 months, due to high interest rates and low inventory. There were 19.7% fewer home sales in June 2023 than in June 2022: 46.5% fewer than at the peak in 2021. The state median home price in June was $838,260. This is 2.4% below the median a year ago, a smaller annual decline than in recent months. 2022 sale prices impacted values on the FY 2023-24 tax rolls. Value changes from 2023 sales through June are trending up each month but are below 2022 levels. The median sale price of Cupertino detached single-family homes from January through August 2023 was $2,900,000, a decrease of $32,500 (1.1%) from 2022's median sale price.
The City’s property tax base remains strong, and HdL, the City’s property tax consultant, is currently projecting growth in property taxes over the next five years, as shown in the table below.
Transient Occupancy Tax (TOT) revenue decreased by $562,000, or 20%, compared to the previous year due to decreased travel, and is still significantly lower than pre-pandemic levels. The average daily rates and occupancy rates for hotels are now closer to pre-pandemic levels, as shown in the chart below.
Average Daily Rates and Occupancy Rates by Month
Hotels in Cupertino
Although TOT revenues have mostly recovered from the pandemic, the City's TOT revenues may continue to be affected in the long term due to telework and decreased business travel. Headwinds in the tech industry have resulted in layoffs and reduced spending in areas such as travel. Staff will continue to monitor economic regulations and other factors and report back on their impact on TOT revenues as part of the quarterly financial reports.
Utility Tax decreased by approximately $114,000, or 7%, over the previous mid-year period due to the timing of Utility User Tax (UUT) payments recorded.
Franchise Fees increased by approximately $152,000, or 20%. While the Franchise Fees show an increase during this mid-year period, this was due to a one-time overpayment for October 2023 that was corrected with an underpayment in January 2024.
Other Taxes increased by approximately $52,000, or 9%, due to an increase in the collection of business license taxes and construction taxes.
Licenses and Permits decreased by approximately $291,000, or 14%, due to construction plan check revenues for Westport development and Bay Area Self Storage collected in prior Mid-Year. Additionally, there was a decrease in commercial project submittals this year compared to the same period last year.
Use of Money and Property increased by approximately $515,000, or 45%, due to increased interest earnings from the City’s investment portfolio.
Intergovernmental Revenue decreased by $1.0 million, or 81%, over the same period last year as all remaining American Rescue Plan Act revenue was recognized in FY 2022-23.
Charges for Services increased by $388,000, or 7%, driven mainly by increases in the collection of plan review engineering fees collected for many Verizon fiber connectivity projects for previously installed Verizon small cell equipment this fiscal year.
Fines and Forfeitures increased by $2,500, or 2%, relatively unchanged from last year.
Miscellaneous Revenue decreased by approximately $553,000, or 49%, primarily due to the timing of the Apple donation for sheriff services.
Transfers In decreased by $750,100, or 87%, due to the one-time transfer-in of funds received in the first quarter of the prior year to General Fund departments for a 10% non-Measure B local match for the I-280/Wolfe Road Interchange Improvements Project.
Other Financing Sources remain budgeted at zero dollars due to the timing of refundable deposit revenues received.
Expenditures
Expenditures in the General Fund have decreased by $3.7 million, or 7%, when compared to the same time last year. The following table shows the differences between General Fund expenditures as of the mid-year in the current fiscal year and the prior fiscal year:
Comparison of FY 2022-23 and FY 2023-24 Mid-Year Expenditures General Fund
Salary and Benefits decreased by approximately $1.1 million, or 16%, from last year due to a reduction in staffing, full-time vacancies, part-time salary savings, and a one-time payment to employees in the prior fiscal year that was approved by Council on August 16, 2022 as part of labor negotiations.
Materials decreased by approximately $14,000, or 1%, relatively unchanged from last year.
Contract Services increased by approximately $1.9 million, or 16%, primarily driven by liability premium increases, community shuttle program, and the law enforcement contract.
Cost Allocation decreased by approximately $64,000, or 1%, primarily due to decreased Public Affairs and City Attorney’s Office Cost Allocation Plan (CAP) charges.
Capital Outlay increased by approximately $0.4 million, or 5,339%, due to the security gate project at the Service Center.
Special Projects increased by approximately $0.6 million, or 48%, primarily due to I-280/Wolfe Road Interchange Improvement.
Contingencies remain relatively unchanged from last year.
Transfers Out decreased by approximately $5.4 million, or 45%, due to the reduction of transfers as an expenditure reduction strategy. Interfund transfers are the movement of cash between one or more funds. As part of the Adopted Budget process, transfers from the General Fund to other City funds serve as operating subsidies to ensure each fund has a positive fund balance at the end of the fiscal year.
Other Financing Uses decreased by approximately $76,000, or 42%, due to refundable deposit on-call contracts for the Community Development Department.
Special Revenue Funds
Revenue
Special Revenue Funds revenue is $1.2 million, or 20%, lower than the same time last year primarily due to an increase in intergovernmental revenue.
Comparison of FY 2022-23 and FY 2023-24 Mid-Year Revenues Special Revenue Funds
Other Taxes decreased by approximately $0.5 million, or 72%, primarily due to decreased park dedication fees received in the prior mid-year period for Alan Row.
Use of Money and Property increased by approximately $62,000, or 22%, due to increased interest earnings from the City’s investment portfolio.
Intergovernmental Revenue increased by approximately $1.3 million, or 74%, due to reimbursement from Measure B funds for 2022 pavement maintenance.
Charges for services decreased by approximately $42,000, or 36%, primarily due to engineering fee revenues received in the prior mid-year period for a traffic impact study related to the Alan Row project, in addition to a larger than average environmental storm drain clean-up reimbursement received last mid-year period.
Fines and forfeitures were relatively unchanged from last year.
Miscellaneous revenues were relatively unchanged from last year.
Transfers In increased by approximately $424,000, or 14%, due to increased transfers to the Transportation Fund for approved Capital Improvement Program projects.
Interfund transfers are the movement of cash between one or more funds. As part of the Adopted Budget process, transfers from the General Fund to other City funds serve as operating subsidies to ensure that each fund has a positive fund balance at the end of the fiscal year. Additionally, when Capital Improvement Program (CIP) projects are authorized by City Council, a transfer from the Capital Reserve to the appropriate fund is necessary to record the costs and activities of the project. For more information on the City’s operating and capital transfers, refer to pages 625-627 and 632-633 of the FY 2023-24 Adopted Budget.
Expenditures
Special Revenue Funds expenditures are $2.7 million, or 31%, lower than the same time last year due primarily to decreases in capital outlays.
Comparison of FY 2022-23 and FY 2023-24 Mid-Year Expenditures Special Revenue Funds
Salary and Benefits decreased by approximately $0.2 million, or 16%, from last year due to a reduction in staffing, full-time vacancies, and part-time salary savings.
Materials decreased by approximately $13,000, or 5%, relatively consistent with the previous fiscal year.
Contract Services increased by approximately $25,000, or 6%, primarily due to annual sidewalk curb and gutter maintenance.
Cost Allocation increased by approximately $15,000, or 2%, primarily due to increased Innovation & Technology and Council & Commissions CAP charges.
Capital Outlays decreased by approximately $2.0 million, or 43%, due to decreases in the Orange Avenue Sidewalk Improvements project.
Special Projects decreased by approximately $0.7 million, or 46%, due to decreases in the annual asphalt project.
Transfers Out decreased by $0.2 million, or 32%, due to reduced transfers for CIP projects.
Debt Service Funds
Revenue
Debt Service Funds revenue is similar to last year.
Comparison of FY 2022-23 and FY 2023-24 Mid-Year Revenues Debt Service Funds
Expenditures
Debt Service Funds expenditures are similar to last year.
Comparison of FY 2022-23 and FY 2023-24 Mid-Year Expenditures Debt Service Funds
Capital Projects Funds
Revenue
Capital Projects Funds revenue is higher than last year primarily due to more transfers to fund capital projects and increased intergovernmental revenue.
Comparison of FY 2022-23 and FY 2023-24 Mid-Year Revenues Capital Projects Funds
Intergovernmental revenue increased by approximately $226,000 due to a grant for Wilson Park Basketball Court and Measure B revenue.
Expenditures
Capital Projects Funds expenditures are higher than last year due to an increase in transfers to fund capital projects.
Comparison of FY 2022-23 and FY 2023-24 Mid-Year Expenditures Capital Projects Funds
Enterprise Funds
Revenue
Enterprise Funds revenue is $0.5 million, or 12%, lower than the same time last year due primarily to decreased intergovernmental revenue and transfer in.
Comparison of FY 2022-23 and FY 2023-24 Mid-Year Revenues Enterprise Funds
Use of Money and Property decreased by approximately $26,000, or 7%, due to decreased field rental permit revenue.
Intergovernmental Revenue decreased by approximately $84,000 due to a grant to assist with meeting the requirements of Senate Bill (SB) 1383, the State’s Short-Lived Climate Pollutant Reduction Strategy in FY 2022-23.
Charges for services increased by approximately $17,000, or 1%, relatively unchanged from last year.
Transfers In decreased by approximately $0.4 million, or 100%, due to no transfers from the General Fund.
Expenditures
Enterprise Funds expenditures are $0.2 million, or 5%, higher than the same time last year due primarily to increases in special projects.
Comparison of FY 2022-23 and FY 2023-24 Mid-Year Expenditures Enterprise Funds
Salary and Benefits increased by approximately $50,000, or 4%, primarily due to negotiated cost-of-living adjustments approved by the City Council on November 7, 2023.
Materials decreased by approximately $33,000, or 17%, primarily due to a decrease in expenditures for CalRecycle and general supplies.
Contract Services had an insignificant change from the same period last year.
Cost Allocation increased by approximately $75,000, or 19%, primarily due to increased I&T and Human Resources CAP charges.
Capital Outlays increased by approximately $14,000, or 3,997%, due to projects that differ in scope and timing from year to year.
Special Projects increased by approximately $0.2 million, or 195%, due to projects that differ in scope and timing from year to year.
Internal Service Funds
Revenue
Internal Service Funds revenue is $2.2 million, or 38%, lower than the same time last year due to decreased transfers in.
Comparison of FY 2022-23 and FY 2023-24 Mid-Year Revenues Internal Service Funds
Use of Money and Property increased by approximately $12,000, or 18%, due to increased interest earnings from the City’s investment portfolio.
Transfers In decreased by approximately $2.0 million, or 59%, due to decreased transfers from the General Fund to the Innovation & Technology and Compensated Absences Fund.
Other Financing Sources decreased by about $219,000 due to no workers’ compensation CAP in FY 2023-24 due to sufficient fund balance in the Workers’ Compensation Fund.
Expenditures
Internal Service Funds expenditures are $96,000, or 2%, lower than the same time last year due primarily to a decrease in other financing uses.
Comparison of FY 2022-23 and FY 2023-24 Mid-Year Expenditures Internal Service Funds
Salary and Benefits decreased by $50,000, or 2%, primarily due to a one-time payment to employees in the prior fiscal year that was approved by Council on August 16, 2022 as part of labor negotiations.
Materials increased by $225,000, or 55%, mainly due to increases in Innovation & Technology software and equipment expenditures.
Contract Services are up approximately $0.1 million, or 21%, largely due to increases in workers’ compensation insurance premiums.
Special Projects decreased by approximately $46,000, or 12%, due to projects that differ in scope and timing from year to year.
Other Financing Uses decreased by approximately $0.4 million, or 100%, because depreciation expenses for the first two quarters have not been included yet.
Budget Adjustment Requests
The City's departments regularly evaluate their budget expenditures throughout the fiscal year to ensure they stay within their budget appropriations. In case of any variance, they can request budget adjustments as necessary as part of the quarterly reports.
The budget adjustment requests are summarized in the table below.
Hidden Treasures Proceeds
The Hidden Treasures event at the Senior Center accepts donations from the community and, in turn, sells the donations on the last Thursday in October. The proceeds are then calculated into the costs to run the event, with the remaining amount incorporated into the Stay Active Fund. The Stay Active Fund helps members ages 50 and over remain active and engaged at the Cupertino Senior Center. This fund provides financial assistance through scholarships for members to offset the cost of a Senior Center membership and registration for classes and events. This fund is also utilized to bring in specialized speakers, secure educational films, and purchase resource materials, etc., for events and programs that promote prevention and preparedness of aging issues, such as the Health Fair. Staff requests the use of the $12,414 revenue brought in during the Hidden Treasures event to reimburse the costs to run the program and continue to support the Stay Active Fund.
Utility User Tax Revenue Adjustment
Utility User Tax revenue is being adjusted to align with the increase in rates being charged to customers, resulting in increased tax revenue for the City.
Fund Balance
The General Fund ended FY 2021-22 with total fund balance of $110.2 million. Staff anticipates the General Fund will end FY 2022-23 with $140.6 million in fund balance, an increase of $30.4 million from the prior year due to FY 2022-23 ending with revenues higher than expenditures.
As of mid-year, staff anticipates the General Fund will end FY 2023-24 with $137.5 million in fund balance. It’s important to note that the only portion available for use, according to City policy, is unassigned funds. Restricted funds, such as the Section 115 Pension Trust, are allocated for specific purposes stipulated by external resource providers. Committed funds, such as the Sales Tax Repayment Reserve, are set aside for specific purposes determined by City Council resolution. Assigned funds are reserved for encumbrances. Of the total fund balance, $36.7 million is unassigned and available for use.
Approximately $10.7 million of unassigned fund balance is attributed to Vallco Town Center plan check and building inspection revenues that were carried over. These revenues will continue to be carried over each year until the services are rendered, and the revenues are recognized.
On October 10, 2023, the City established a committed Sales Tax Repayment Reserve with an initial allocation of $56.5 million. This reserve is designed to address a potential adverse CDTFA decision and the uncertain outcome of the anticipated legal challenge. Committed fund balance, as described on page 165 of the FY 2023-24 Adopted Budget, “includes amounts that can only be used for the specific purposes determined by formal action of the City’s highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action (resolution) that imposed the constraint originally.” The reserve was funded as follows:
$40.5 million from General Fund Unassigned fund balance. $10.0 million from the General Fund Committed Capital Projects Reserve. $6.0 million from the General Fund Committed Economic Uncertainty Reserve.
The initial allocation to the Sales Tax Repayment Reserve was $56.5 million, accounting for disputed sales tax revenue received between April 1, 2021, and June 30, 2023. The City continues to receive disputed sales tax revenue, with approximately $60.3 million received as of September 30, 2023. In the third quarter, staff will reconcile revenues with actuals and adjust the Sales Tax Repayment Reserve accordingly.
General Fund Classification of Fund Balance
To date, the City’s external 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 review by the City’s auditors. City staff does not anticipate many, if any, changes to these figures.
Per the City’s Fund Balance Policy, unassigned fund balance over $500,000 is to be used in the following order to replenish committed/restricted fund balances with any remaining balances to be placed in the Capital Reserve:
Economic Uncertainty Reserve
Sales Tax Repayment Reserve
CalPERS Reserve (Section 115 Pension Trust)
Sustainability Reserve
Unassigned
As of mid-year, all priority areas are fully funded.
Staffing
As of December 31, 2023, the FY 2023-24 Amended Budget includes a total of 212 full-time equivalent (FTE) positions. No changes are recommended at mid-year.
Performance Measures & Workload Indicators
The Mid-Year Financial Report includes updated performance measures and workload indicators that are in line with the best practices of both government and private industry. These measures have been designed to provide a comprehensive understanding of the City's performance and progress toward achieving its goals and objectives. Attachment F provides an overview of the status of the performance measures as of mid-year. This information is critical to effective decision-making and ensuring that resources are being used in the most efficient and effective way possible.
City Manager Discretionary Fund
In the FY 2023-24 Adopted Budget, City Council approved $50,000 in funding for the City Manager Discretionary Fund. The quarterly financial reports will detail the City Manager’s use of the discretionary fund and may include recommendations to replenish depending on the extent and nature of use. As of December 31, 2023, the City Manager’s Discretionary Fund has not been used.
Special Projects
The quarterly financial reports provide a status update on special projects, including the budget, amount spent, and estimated completion date. See Attachment G for FY 2022-23 special projects and Attachment H for FY 2023-24 special projects as of December 31, 2023.
Grants
The City entered into a contract with California Consulting in February 2019 to identify and apply for State and Federal grants on behalf of the City. The contract originated in Public Works and was transferred to Administrative Services in FY 2022-23. The goals of this pilot program were to centralize the grant function and to maximize grant opportunities. However, as part of a Citywide budget reduction strategy, the contract with California Consulting ended on June 30, 2023. With the elimination of this contract, departments are now responsible for identifying and applying for grants.
Staff provides updates on the status of grants as part of the quarterly financial reports. During FY 2021-22, FY 2022-23, and FY 2023-24, the City applied for 25 competitive grants totaling $36.7 million. To date, the City has been awarded $22.4 million. Furthermore, during FY 2018-19, 2019-20, and 2020-21, the City applied for 10 additional grants totaling $10.2 million. Of these 10 grants, the City has been awarded $9.2 million. Also, during FY 2021-22, FY 2022-23, and FY 2023-24, the City applied for 18 non-competitive grants totaling $2.8 million. These numbers have been revised from prior reporting periods to reflect that the Santa Clara County Home Investment Partnership (HOME) Consortium grants are available each year. Cities in the County can apply for these funds for future Fiscal Years as a part of the County Consortium.
See Attachment I for further details on grants applied, pending, awarded, and not awarded.
Capital Improvement Program
The quarterly financial reports provide a revised estimate and update on Capital Improvement Program (CIP) projects. As of mid-year, the Public Works Department is not requesting any revisions to the capital budget. See Attachment J for the status of projects.
Sustainability Impact
No sustainability impact.
Fiscal Impact
The Mid-Year Financial Report shows the City is positioned as anticipated. City staff recommends adjustments of $10,057 in new appropriations, funded by $807,672 in revenues and $797,615 in one-time fund balance. 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.
California Environmental Quality Act
Not applicable.
Prepared by: Thomas Leung, Budget Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Matt Morley, Assistant City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:
A – FY 2023-24 Mid-Year Financial Report
B – Draft Resolution
C – Description of Carryovers and Adjustments as of December 31, 2023 D – Description of Budget Transfers as of December 31, 2023 E – FY 2023-24 Mid-Year Recommended Adjustments
F – Mid-Year Performance Measures & Workload Indicators G – FY 2022-23 Special Projects Update
H – FY 2023-24 Mid-Year Special Projects Update as of December 31, 2023 I – Competitive and Non-Competitive Citywide Grants Tracking J – Capital Improvement Program Project Status
17 Encumbrances are outstanding commitments tied to unfilled purchase orders or contracts, which are rolled over to the following fiscal year until those obligations are fulfilled or terminated. Carryover appropriations are unencumbered funds for unfinished projects carried over to the following fiscal year to be spent for the same purpose for which they were approved.
The cost allocation plan (CAP) allocates indirect and overhead costs to the departments that benefit from them. Costs incurred by central service providers (e.g., City Manager's Office, City Attorney's Office, Finance, Human Resources, Facilities, etc.) are charged to the departments that benefit from the services (e.g., Parks & Recreation). The purpose of the CAP is to help the City to determine the true cost of providing services.