CITY OF CUPERTINO
FY 2024-25 Third Quarter Report
The following is the Third Quarter Financial Report, submitted by the Administrative Services Department for the period July 1, 2024 to March 31, 2025 of Fiscal Year (FY) 2024-25, It has been prepared to inform the City Council, City leadership, and the public of the City's fiscal status.
This Financial Report is interactive. Click on a chart to learn more.
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 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 for encumbrances and carryover appropriations. 1 As part of the FY 2023-24 year-end close, additional funds were carried forward to FY 2024-25, amounting to $9.0 million in encumbrances and $61.1 million in budget carryovers. The largest encumbrances were for General Fund (S4.8 million), and the largest carryovers were for General Fund (S24.3 million) and are largely related to The Rise Project Outside of the General Fund the Capital Improvement Plan accounts for most of the carryovers in the Capital Funds and a large portion of the special revenue funds.
Furthermore, the FY 2024-25 Amended Budget as of March 31, 2025, includes Council-approved budget adjustments from July 1, 2024, to March 31, 2025 totaling $21.6 million, for a total amended budget of $238.2 million across all funds.
The amended budget at the end of third quarter is $238.2 million, funded with $183.3 million in revenue and $55.0 million in fund balance, of which $24.1 million is from CIP related projects. 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. Carryovers and encumbrances are appropriations approved in prior years but have not yet been spent and are still required for ongoing projects or obligations.
Amended Budget
• Public Works
200.0M • Capital Projects
• Community Development
• Non Departmental
150.OM
• Law Enforcement
• Parks and Recreation
Administrative Services
Innovation & Technology
• Administration
50.0м
Council and Commissions
• Community Development
0.0 2023-24 2023-24 2023-24 2024-25 2024-25
Adopted Budget Amendor Amended Amended
Budget Q2 Budget Q4 Budget Q3
Fiscal Year
Flow of Funds Chart (in Millions)
FY 25 Amended Budget Expenditures By Department
(as of 3/31/25)
Expenditures by Fund
Council and Commission
$1.12M
Administration
$5.66M
Law Enforcemen
oposed Budg General Func $18.71N
146.55l $137.60M
Innovation Technolog
$11.34M
Administrative Services
$11.01M
Adopted Budget
$0.10M Special Revenue Fund arks and Recreati
$34.07N 12.54
Encumbrance Carryovers Debt Service Funds ommunity Developme $2.68M 35.55l
$8.99M
Capital Project Funds Public Works
$46.18M $59.04M
Budget Carryovers
$61.07M
Enterprise Funds
$9.87M Capital Projects/Non Departmental
$83.29M
Council Approved Adjustment Internal Service Funds
$23.86M
$10.17M
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. However, when we look at actual revenues and expenditures, 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 a healthy fund balance in the General Fund Revenues
125.0M
• Expenses
100 0M
50.0M
25.0M
0.0 2020-21 June March 2022-23 2023-24
2020-21 2021-22 Amended 2022-23
Budget 03 actual Actual Budget Q3 Actual Budget Q3
Fiscal Year
General Fund Revenues $12M -
vs Expenses at Third
Quarter S10M
Data Updated May 13, 2025, 3:35 AM $8M-
S6M-
SAM
$2M-
$0
-S2M-
-S4M
Mar 2023 Mar 2024 Mar 2025
-$3,278,119.68
Revenues Less Expenses in Mar 2025
General Fund Revenue and Expenditure Trends
As of March 31, 2025, General Fund revenues are $122.1 million, which represents 61% of the budgeted revenue. This revenue level is higher than the range of revenues at the Third Quarter point of the prior three years, which were between 59% and 63% of the budgeted revenues. the Tral uater pritures portre lars, which aere bet we 52% the 7% outge edgerep expendituris spending level is ligher than the range of expendilures at General Fund Revenues - Third Quarter Budget vs Actuals General Fund Expenditures - Third Quarter Budget vs Actuals Data Updated May 13, 2025, 3:35 AM Data Updated May 13, 2025, 3:35 AM 22025 32021 32022 312023 3/2024 3/2025
61.70% 57.12%
In Revenues of $122,076,588.00 Budgeted through Mar 2025 In Expenses of $137,608,861.00 Budgeted through Mar 2025 of third quarter, revenue was $3.3 million, or 5% higher than last year, primarily attributed to changes in the City's revenue sources, while expenditures were $1 lion. or 23% higher than last year. primarily due to employee benefits, increases in transfers and salaries and bene As of third quarter, revenue was $3.3 million, or 5% higher than last year, primarily attributed to changes in the City's revenue sources, while expenditures were $14.9 million, or 23% higher than last year, primarily due to employee benefits, increases in transfers and salaries and benefits.
General Fund Revenues by Type General Fund Expenditures by Type Other Other -
- Property Tax - Contract Ser...
Cost Allocat...
Licenses and... -
Use of Money Expenses -
- Employee Com...
- Sales Tax
Charges for ... Transfers Ou...
$75,317,804.66 $78,595,924.34
Revenues in Mar 2025 Expenses in Mar 2025
General Fund Classification of Fund Balance
The General Fund ended FY 2023-24 with total fund balance of $166.1 million. Staff anticipates the General Fund will end FY 2024-25 with $150.8 million in fund balance, a decrease of $15.3 million from the prior year due to FY 2023-24 ending with revenues higher than expenditures.
As of third quarter, staff anticipates the General Fund will end FY 2023-24 with $150.6 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 determined by City Council resolution. Restricted funds, such as the Section 115 Pension Trust, are allocated for specific purposes stipulated by external resource providers. Assigned funds are reserved for encumbrances. Of the total fund balance, $26.4 million is unassigned and available to be used.
Mid-Year Year 3rd Quarter Year
End Projection
Classification
Non Spendable 0.9 S 3.4 S 0.4 $ 4.7 S 3.4 S 34
Restricted 20.7 23.3 20.7 20.7 20.7 22.1
Committed 34.1 108.6 99.0 31.1 98.6 98.6
Assigned 9.7 4.7 7.0 7.0 4.7
Unassigned 73.1 26.0 23.6 106.2 25.3 26.4
TOTAL FUND BALANCE S 138.6 $ 166.1 $ 150.8 $ 169.8 $ 152.8 $ 150.6 Recommended Adjustments
s 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 als commending defunding some projects and adjusting sales tax to align the budget with year-end actuals. The recommended adjustments are summarized belo Fund Department Revenue Expenditure Chan ge in Prop os al Fund Balance
GENERAL FUND
100 General Fund Non Depatmantal 4,451,038 1,451,038 S ales Tro Projection Increnso 100 General Fund Community 155,000 159,000 - Bank Charges Derdopmert
100 General Fund Comminly $7,000 (87,000) Bulkting On-Cal Contract fcr Derdopmert : Inapections
100 General Fund Communly 33,000 (33,000) Code Entacement - Clation Derelopment Procesing Cente Fees
00 General Fun Packs de Recreation 25,000 (26,000) Band Chauges 00 General Fun Packs& Recrention 301,543 301,543 Incrensed Rerenue from Rentals and Programs
100 General Fund Parksde Recention 15,487 (15,457) Past-Time Staffing 00 General Fund Pubic Wals : 50,000 (50,000) Material Bunker Wall Replacement
100 General Fund Puble Waks 9,200 9,200) Portal Pack Emergency Tree Remoral
100 General Fund Puble Waks 9,528 (9,525) Cirk Center Tree Grates : Replacemert
100 Genesi Fund Public Works 9,194 (0,194) MoCtelen Fanch Pack Entrance Sign Replacement
100 Gerend Fund Public Warks (336,594) 336,594 Deund - Various Projets TOTAL GENERAL 4,910,581 60,815 4,849,766
FUND
SPECIAL REVENUE
FUNDS
210 Starm Drain Public Warks (54,239) 54,239 Dafund - Pumph in/Fieta Stam Improrenert Dasin Project
TOTAL SPECIAL
REVENUE FUNDS • (54,239) 54,239
CAPITAL FINDS
420 Capital Improvement Public Waks (495,355) 495,355 Datund - Various Projets Fund
429 Capital Reave Public Warks 290,354 290,354 - Tranters in and cuts for the defund of vassous projets
TOTAL CAPITAL
FUND 290,354 (208,001) 499,355
ENTERPRISE FUNDS
520 Resource Recovery Public Waks - (20,000) 10,000 Defund - CAP Dashboard Plat 560 Blackbary Fam Paksde Recention 5,500 15,000 (9,500) Bank: Charges 580 Recreation Program Packs de Recreation 205,000 ·9,000 156,000 Bank Chages
TOTAL EN TE RPRIS E
FUNDS 210,500 44,000 166,500
TOTAL ALL FUNDS 55,11,435 057,125) 5 5568,860
Summary
The Third Quarter Financial Report shows the City is positioned as anticipated. City staff recommends adjustments of $5,411,435 in revenues and a net decrease of S(157,425) in appropriations. 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 Hall
10300 Torre Avenue
Cupertino, CA 95014-3202
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