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Background
On June 4, 2024, the City Council adopted the FY 2024-25 Adopted Budget, a $146.6 million spending plan funded by $139.3 millionin revenue and $7.3 million in fund balance. The adopted budget reflected a $102,805 increase from the proposed budget. As a resultof these budget adjustments, encumbrances, and carryovers, the amended budget at the end of the first quarter is $217.4 million,funded with $175.0 million in revenue and $42.4 million in fund balance.
Amended Budget
2023-24Adopted Budget 2023-24Amended BudgetQ1
2023-24Amended BudgetQ2
2023-24Amended BudgetQ3
2023-24Amended BudgetQ4
2024-25Adopted Budget 2024-25Amended BudgetQ1
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Description pending
CITY OF CUPERTINO
FY 2024-25 First Quarter Financial ReportThe following is the First Quarter Financial Report, submitted by the Administrative Services Department for the period of July 1, 2024 toSeptember 30, 2024 for Fiscal Year (FY) 2024-25. It has been prepared to inform the City Council, City leadership and the public of theCity’s fiscal status.
Flow of Funds Chart ($ in Millions)
General Fund Revenues, Expenditures, and Fund BalanceTo date the City’s financial statement audit has yet to be issued and revenue, expenditure, and fund balance totals listed in this reportare preliminary and subject to change after a full review by the City’s auditors. City staff does not anticipate many if any changes fromthe auditors. -$14,328,830.32Revenues Less Expenses in Sep 2024
-$20M
-$15M
-$10M
-$5M
$0
Sep 2020Sep 2022Sep 2024
$27,538,980.23Revenues Less Expenses in Jun 2024
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$30M
Jun 2022 Jun 2024
Revenues vs. Expenditures
June2020-21Actual
September2021-22Actual
2021-22Amended BudgetQ1
June2022-23Actual
September2023-24Actual
2023-24Amended BudgetQ1
2024-25Amended BudgeQ1
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Revenues
Expenses
General Fund Revenue and Expenditure TrendsAs of September 30, 2024, General Fund revenues are at $11.5 million, which is 9% of budgeted revenue. Revenues at the firstquarter point of the prior three years were between 13% and 18% of budgeted revenues, placing this year slightly below the range.Staff will continue to monitor its leading revenue sources as the year progresses. General Fund expenditures are $25.5 million, which is 21% of budgeted appropriations. Expenditures at the first quarter point of theprior three years ranged between 23% and 27% of budgeted appropriations which places current first quarter actuals within the range.
General Fund Revenues vsExpenditures First Quarter
Data Updated Nov 26, 2024, 11:35 AM
General Fund Revenues vsExpenses Year End
Data Updated Nov 26, 2024, 11:35 AM
General Fund Revenues - First Quarter vs Budget
Data Updated Nov 26, 2024, 11:35 AM
9/20209/2021 9/20229/20239/2024
9.18%In Revenues of $122,062,969.00 Budgeted through Sep 2024 General Fund Expenses - First Quarter vs Budget
Data Updated Nov 26, 2024, 11:35 AM
9/20209/2021 9/20229/20239/2024
21.43%In Expenses of $119,145,337.00 Budgeted through Sep 2024 As of the first quarter, overall revenue is $11.5 million, which is $7.1 million, or 70%, lower than the same time last year. This isprimarily due to decreases in sales tax, intergovernmental, and use of money and property. As of first quarter, overall expenditures are $25.5 million, which is $127,065, or 0%, lower than the same time last year. This isprimarily due to decreases in contract services. $11,203,976.70Revenues in Sep 2024
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Sep 2021Jun 2023Sep 2024
$25,532,807.02Expenses in Sep 2024
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Sep 2021Jun 2023Sep 2024
General Fund Revenues -First Quarter vs Year End
Data Updated Nov 26, 2024, 11:35 AM
General Fund Expenses -First Quarter vs Year End
Data Updated Nov 26, 2024, 11:35 AM
$11,203,976.67Revenues in Sep 2024
Charges for Serv...
Sales Tax
OtherUtility TaxOther Financing ...Licenses and Per...
$25,532,807.02Expenses in Sep 2024
Transfers Out
Contract Service...
OtherEmployee Benefit...Cost Allocation
Employee Compens...
General Fund Classification of Fund BalanceThe General Fund’s estimated, unaudited ending fund balance for FY 2023-24 is $166.1 million. An increase from estimated year-endfund balance from FY 2024-25 Final Budget and the October 15, 2024 uncommitting of sales tax repayment reserve council item of$15.3 million. This increase is primarily due to the prior year ending with expenditure savings that outpaced revenue decreases.Expenditure savings were primarily because of salary and contract savings along with increased revenues. As of first quarter, staff anticipates the General Fund will end FY 2024-25 with $164.3 million in fund balance. It’s important to note thatthe only portion available for use, according to City policy, is unassigned funds. Committed funds are set aside for specific purposesdetermined by City Council resolution. Restricted funds, such as the Section 115 Pension Trust, are allocated for specific purposesstipulated by external resource providers. Assigned funds are reserved for encumbrances. Of the total fund balance, $96.2 million isunassigned and available to be used. Options for allocating those unassigned funds will be presented to City Council for theirconsideration this evening. Approximately $10.7 million of unassigned fund balance is attributed to Vallco Town Center plan check and building inspectionrevenues that were carried over. These revenues will continue to be carried over each year until the services are rendered, and therevenues are recognized. On October 10, 2023, the City established a committed Sales Tax Repayment Reserve with an initial allocation of $56.5 million. Thisreserve was designed to address a potential adverse CDTFA decision and the uncertain outcome of the anticipated legal challenge.This reserve was later increased to $74.5 million to account for revenue through the end of FY 2023-24. These funds wereuncommitted in October 2024 after the City settled with the CDTFA. Since this change occurred after September 30, 2024, they arenot reflected in the table below. Committed fund balance, as described on page 167 of the FY 2024-25 Adopted Budgets, “includesamounts that can only be used for the specific purposes determined by formal action of the City’s highest level of decision-makingauthority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action (resolution) thatimposed the constraint originally.” The Cities’ financial auditor issued FY24 financial statements, and this chart has been updated to reflect that document.
General Fund Revenues byType
Data Updated Nov 26, 2024, 11:35 AM
General Fund Expenses byType
Data Updated Nov 26, 2024, 11:35 AM
*Q1 Year-End Projections assume budgeted revenues and expenditures are fully collected and incurred. Fund balances do notconsider City Council actions after September 30, 2024.
Recommended Adjustments
As of the first quarter, Departments are requesting budget adjustments to ensure they end the year within budget appropriations. Therecommended adjustments are summarized in the table below:
Summary
The First Quarter Financial Report shows the City is positioned as anticipated. City staff recommends adjustments of $384,698 in newappropriations, funded by increases in revenue of $53,570 because of transfers in from the General Fund and the use of one-timeunassigned fund balance of $331,128. The City will continue to monitor its revenue and expenditure trends closely to ensure itremains on track toward achieving its budgetary goals and objectives.
City of Cupertino, California
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