This Financial Report is interactive. Click on a chart to learn more.
Background
On June 6, 2023, the City Council adopted the FY 2023-24 Adopted Budget, a $121.8 million spending planfunded by $110.2 million in revenue and $11.6 million in fund balance. The adopted budget reflected a $4.0million increase from the proposed budget, mainly due to the Capital Improvement Program, which waspresented 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 forencumbrances and budget carryovers. As part of the FY 2022-23 year-end close, additional funds werecarried forward to FY 2023-24, amounting to $17.1 million in encumbrances and $64.0 million in budgetcarryovers. The largest encumbrances were for capital projects ($3.8 million), while the largest carryoverswere 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 toMarch 31, 2024, totaling $5.2 million. It included $0.5 million in first-quarter adjustments, $0.2 million for acommunity resilience grant for EV chargers, and $4.4 million for capital projects and transfers.
The amended budget at the end of the third quarter is $208.1 million, funded with $152.8 million in revenueand $55.3 million in fund balance.
Amended Budget
CITY OF CUPERTINO
FY 2023-24 Third Quarter ReportThe following is the Third Quarter Financial Report, submitted by the Administrative ServicesDepartment for the period July 1, 2023 to March 31, 2024 of Fiscal Year (FY) 2023-24. It has beenprepared to inform the City Council, City leadership, and the public of the City’s fiscal status. 2023-24Adopted Budget 2023-24 Amended BudgetQ1
2023-24 Amended BudgetQ2
2023-24 Amended BudgetQ3
Fiscal Year
0.0 100.0M
200.0M
50.0M
150.0M
Dollars
Public Works
Community Development
Capital Projects
Law Enforcement
Non Departmental
Parks and Recreation
Administrative Services
Innovation & Technology
Administration
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 exceededamended revenues, leading to a decrease in fund balance. However, when we look at actual revenues andexpenditures, we have historically seen an increase in fund balance.
By continuing to monitor and manage its financial resources effectively, the City can ensure that it maintains ahealthy fund balance in the General Fund.
March2020-21 Actual
2021-22 Amended BudgetQ3
June 2021-22 Actual
March2022-23Actual
2023-24 Adopted Budget March 2023-24 Actual
Fiscal Year
0.0 100.0M
25.0M
50.0M
75.0M
125.0M
Dollars
Revenues
Expenses
$4,901,875.18Revenues Less Expenses in Mar 2024
$0
$2M
$4M
$6M
$8M
$10M
$12M
Mar 2021Mar 2022Mar 2023Mar 2024
$28,658,190.73Revenues Less Expenses in Jun 2023
$0
$5M
$10M
$15M
$20M
$25M
$30M
Jun 2021Jun 2022Jun 2023
General Fund Revenue and Expenditure Trends
As of March 31, 2024, General Fund revenues are $68.6 million, which represents 60% of the budgetedrevenue. This revenue level is higher than the range of revenues at the Third Quarter point of the prior threeyears, which were between 54% and 59% of the budgeted revenues.
General Fund expenditures are $63.6 million, which accounts for 52% 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 73% of the budgeted expenditures.
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 May 14, 2024, 12:04 PM
3/20213/20223/20233/2024
60.12%In Revenues of $114,131,269.00 Budgeted through Mar 2024 General Fund Expenditures - Third Quarter Budget vs Actuals Data Updated May 14, 2024, 12:04 PM
3/20213/20223/20233/2024
52.10%In Expenses of $122,284,610.00 Budgeted through Mar 2024 As of third quarter, revenue was $4.6 million, or 6% lower than last year, primarily attributed to drops in salestax, transient occupancy tax, intergovernmental revenue, and transfers, while expenditures were $3.8 million,or 6% lower than last year, primarily due to decreases in transfers and salaries and benefits. $68,616,741.27Revenues in Mar 2024
$0
$20M
$40M
$60M
$80M
$100M
$120M
Mar 2021Mar 2022Mar 2023Mar 2024
$63,714,866.09Expenses in Mar 2024
$0
$20M
$40M
$60M
$80M
$100M
Mar 2021Mar 2022Mar 2023Mar 2024
$68,616,741.27Revenues in Mar 2024
Sales Tax
Property Tax
Other
Licenses and...Transient Oc...
Charges for ...
$63,714,866.09Expenses in Mar 2024
Contract Ser...
Employee Com...
Other
Transfers Ou...
Employee Ben...
Cost Allocat...
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 General Fund ended FY 2021-22 with total fund balance of $110.2 million. Staff anticipates the GeneralFund will end FY 2022-23 with $138.8 million in fund balance, an increase of $28.7 million from the prior yeardue to FY 2022-23 ending with revenues higher than expenditures.
As of third quarter, staff anticipates the General Fund will end FY 2023-24 with $160.7 million in fund balance.It’s important to note that the only portion available for use, according to City policy, is unassigned funds.Committed funds, such as the Sales Tax Repayment Reserve, are set aside for specific purposes determinedby City Council resolution. Restricted funds, such as the Section 115 Pension Trust, are allocated for specificpurposes stipulated by external resource providers. Assigned funds are reserved for encumbrances. Of thetotal fund balance, $37.3 million is unassigned and available to be used.
Recommended Adjustments
As of the third quarter, some departments are requesting budget adjustments to ensure that they stay withintheir budget appropriations by year-end. In addition, staff is also recommending defunding some projects andadjusting sales tax to align the budget with year-end actuals. The recommended adjustments are summarizedbelow.
Summary
The Third Quarter Financial Report shows the City is positioned as anticipated. City staff recommends a $0.5million decrease in appropriations, a $20.0 million increase in revenues, and a $20.5 million increase in fundbalance. The City will continue to monitor its revenue and expenditure trends closely to ensure it remains ontrack 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