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Background
On June 4, 2024, the City Council adopted the FY 2024-25 Adopted Budget, a $146.6 million spending planfunded by $139.3 million in revenue and $7.3 million in fund balance. The adopted budget reflected a$102,805 increase from the proposed budget.
As described in the City Manager’s First Quarter Financial Report, the budget was revised to account forencumbrances and carryover appropriations . As part of the FY 2024-25 year-end close, additional funds werecarried forward to FY 2024-25, amounting to $9.0 million in encumbrances and $61.1 million in budgetcarryovers. The largest encumbrances were for General Fund ($4.8 million), and the largest carryovers werefor General Fund ($24.3 million) and are largely related to The Rise Project.
Furthermore, the FY 2024-25 Amended Budget as of December 31, 2024 includes Council-approved budgetadjustments from July 1 to December 31, 2024, for a total of $227,801,053 across all fund.
The amended budget at the end of mid-year is $227.8 million, funded with $175.0 million in revenue and $52.8million in fund balance. The amended budget is the adopted budget, plus encumbrances, carryovers, andCouncil-approved budget adjustments. The reflection of carryovers and encumbrances in the amended budgetis a standard practice in municipal budgeting and aligns with the amounts in previous years, which have beenapproximately $80 million. Carryovers and encumbrances are appropriations approved in prior years but havenot yet been spent and are still required for ongoing projects or obligations.
CITY OF CUPERTINO
FY 2024-25 Mid-Year Financial ReportThe Administrative Services Department is pleased to present the Mid-Year Financial Report for Fiscal Year 2024-25, covering the period from July 1, 2024 to December 31, 2024. This report serves as an update on the City'sfinancial standing, providing the City Council, City leadership, and the public with important insights on the City'sfiscal status.The City is committed to providing accurate and timely financial information, and this report reflects its ongoingefforts to maintain transparency and accountability.
Amended Budget
2023-24Amended BudgetQ1
2023-24Amended BudgetQ3
2024-25Adopted Budget 2024-25Amended BudgetQ2
Fiscal Year
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Public Works
Capital Projects
Community Development
Law Enforcement
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Parks and Recreation
Administrative Services
Innovation & Technology
Administration
Council and Commissions
Community Development
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 balancetotals listed in this report are preliminary and subject to change after a full review by the City’s auditors. Citystaff does not anticipate many if any changes from the auditors. 2020-21Amended BudgetQ2
June2020-21Actual
December2021-22Actual
2022-23Amended BudgetQ2
June2022-23Actual
2023-24Amended BudgetQ2
December2024-25Actual
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0.0 100.0M
25.0M
50.0M
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125.0M
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Revenues
Expenses
-$14,662,967.41Revenues Less Expenses in Dec 2024
-$15M
-$10M
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$0
$5M
$10M
Dec 2020 Dec 2022 Dec 2024
$27,877,519.81Revenues Less Expenses in Jun 2023
$0
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$10M
$15M
$20M
$25M
$30M
Jun 2021 Jun 2022 Jun 2023
General Fund Revenue and Expenditure TrendsAs of December 31, 2024, General Fund revenues have totaled $41.9 million, representing 34.3% of thebudgeted revenue. This is below the mid-year revenue range of the past three years, which was between 35%and 40%. General Fund expenditures have totaled $56.5 million, which is 43.2% of the budgetedappropriations*. This is below the mid-year expenditure range of the previous three years, which was between General Fund Revenues - Expenses at Mid-Year General Fund Revenues - Expenses at Year End 48% and 50% of year-end actual expenditures. To ensure fiscal stability, staff will continue to closely monitorleading revenue sources throughout the year. *Staff is working with Opengov to resolve the discrepancy in the amended budget amount of $131,006,154.
General Fund Revenues - Mid-Year Actuals vs Budget
Data Updated Feb 26, 2025, 11:37 AM
12/202012/202112/202212/202312/2024
34.30%In Revenues of $122,062,969.00 Budgeted through Dec 2024 General Fund Expenses - Mid-Year Actuals vs Budget
Data Updated Feb 26, 2025, 11:37 AM
12/202012/202112/202212/202312/2024
43.15%In Expenses of $131,006,154.00 Budgeted through Dec 2024 $41,867,139.46Revenues in Dec 2024
$0
$20M
$40M
$60M
$80M
$100M
$120M
Jun 2021Jun 2022Jun 2023Dec 2024
$56,530,106.84Expenses in Dec 2024
$0
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$40M
$60M
$80M
$100M
Jun 2021Jun 2022Jun 2023Dec 2024
General Fund Revenues - Mid-Year vs Year End Actuals General Fund Expenses - Mid-Year vs Year End Actuals $41,867,139.43Revenues in Dec 2024
Property Tax
Charges for ...
Sales Tax
Other
Licenses and...
Use of Money
$56,530,106.84Expenses in Dec 2024
Contract Ser...
Employee Com...
Other
Cost Allocat...
Transfers Ou...
Expenses
General Fund Classification of Fund BalanceAs of mid-year, staff anticipate the General Fund will end FY 2024-25 with $152.8 million in fund balance. Adecrease of $13.2 million from the first quarter projection of $169.8. The decrease is due to the uncommittingof $10 million dollars for a one-time discretionary payment towards the City’s retirement system CalPERS, inaddition to changes in the amended budget including adjustments being requested in this report. It’s importantto note that the only portion available for use, according to City policy, is unassigned funds. Committed funds,such as the Committed for Future Use reserve are set aside for specific purposes determined by City Councilresolution. 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 fundbalance, $29.1 million is unassigned and available to be used.
Approximately $10.7 million of unassigned fund balance is attributed to Vallco Town Center plan check andbuilding inspection revenues that were carried over. These revenues will continue to be carried over each yearuntil the services are rendered, and the revenues are recognized.
General Fund Revenues by Type General Fund Expenses by Type Recommended Adjustments
The City's departments regularly evaluate their budget expenditures throughout the fiscal year to ensure theystay within their budget appropriations. In case of any variance, they can request budget adjustments asnecessary as part of the quarterly reports.
The budget adjustment requests are summarized in the table below.
Summary
The Mid-Year Financial Report shows the City is positioned as anticipated. City staff recommends adjustmentsof $4,161,892 in new appropriations, funded by $4,115,183 in revenues and $50,190 in one-time fund balance.The City will continue to monitor its revenue and expenditure trends closely to ensure it remains on tracktoward achieving its budgetary goals and objectives.
City of Cupertino, California
Cupertino City Hall10300 Torre AvenueCupertino, CA 95014-3202 View the City Council Meeting AgendaView the City's BudgetsView the City's Financial Transparency Portal Powered by OpenGov