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MONTHLY FINANCIAL STATUS REPORT
November 2021
1 City of Santa Clara
Financial Status Report as of November 30, 2021
This report summarizes the City’s financial performance for the month ended November 30, 2021.
Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds. Financial information included in this report is unaudited.
General Fund
The General Fund is the major operating fund for the City and includes multiple programs, services, and activities for the residents and businesses of the City. The adopted budget for operating revenues and expenditures for fiscal year 2021/22 was $289.3 million. The amended budget for revenues and expenditures was amended to $295.2 million to reflect carryover appropriations from fiscal year 2020/21 and various budget amendments approved by the City Council through November 2021.
Nearly halfway through the fiscal year, General Fund revenues are currently tracking slightly below estimated levels. Concerns remain regarding continued impacts of COVID-19 as the Omicron variant and vaccine hesitancy may impact the speed of recovery. Through November, expenditures are tracking below budget and this trend is expected to continue as departments continue to control expenditures through various cost control measures.
Many economic indicators have improved significantly since the start of the pandemic, but some have not returned to pre-pandemic levels. On a national level, the unemployment rate decreased from 4.2% in November 2021 to 3.9% in December 2021. This rate was well below the record setting high of
14.7% in April 2020, but slightly above the pre-pandemic unemployment rate of 3.5%. In December, the number of unemployed persons fell to 6.3 million from 6.8 million in November. This unemployment figure remains above the pre-pandemic level of 5.7 million.1
1 https://www.bls.gov/news.release/pdf/empsit.pdf
2 City of Santa Clara
Financial Status Report as of November 30, 2021
In the third quarter 2021 revised estimate, the Gross Domestic Product (GDP) increased by 2.3%, following a GDP increase of 6.7% in the second quarter. The estimated increase in the first quarter reflected efforts to reopen businesses and resume some activities amidst COVID-19 safety precautions. The second quarter reflects increases in consumer spending, exports and local and State government spending. In the third quarter, the resurgence of COVID-19 cases has resulted in new restrictions and delays in reopening businesses in some parts of the country. The real GDP for the third quarter 2021 is 1.4% above the level experienced in the fourth quarter of 2019.2
While GDP has now surpassed the pre-COVID peak in the second quarter 2021, it has not yet reached the pre-pandemic trend. Per the December 2021 UCLA Anderson Forecast, GDP is not expected to reach the pre-COVID trend until the third quarter 2022. On an annual basis, the UCLA Forecast projects GDP growth of
5.6% in 2021, 4.2% in
2022, and 2.7% in 2023.
“Overall, our forecast is
for continued strong
economic growth and
labor market recovery,
with a lessening of
supply constraints and
inflation. Omicron may
temporarily derail this
forecast, but it’s too
soon to tell.”3
2 https://www.bea.gov/sites/default/files/2021-12/tech3q21_3rd.pdf 3 UCLA Anderson Forecast, December 2021
3 City of Santa Clara
Financial Status Report as of November 30, 2021
Improvement continues at the State and local level. After the State’s largest increase in the unemployment rate in April 2020, the California unemployment rate dropped slightly to 6.5% in December 2021. With the continued addition of jobs, California has now regained 1.95 million jobs, or nearly 72% of the 2.71 million jobs lost due to COVID-19 in March and April 2020.4 The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 3.0% in December 2021, down from a revised 3.2% in November 2021 and the December 2020 level of 6.0% but higher than the February 2020 level of 2.6%. Between December 2020 and December 2021, employment in this region increased by 64,000 jobs, or 6.0%.The largest increases were in leisure and hospitality (up 24,300 jobs), professional and business services (up 12,700 jobs), and private educational and health services (up 9,700 jobs).6 Staff will continue to closely monitor the economic environment and the City’s financial performance and provide updates through the Monthly Financial Reports.
4 https://www.edd.ca.gov/newsroom/unemployment-december-2021.htm 6 https://www.labormarketinfo.edd.ca.gov
4 City of Santa Clara
Financial Status Report as of November 30, 2021
General Fund Revenues
As of November 30, 2021, $58.9 million or 23.5% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $44.2 million have occurred as budgeted.
While revenue collections are tracking below the budgeted estimate, collections are higher when compared to collections last fiscal year (excluding various permits collections that are now deposited into the new Building Development Services Fund and transfers).
Adopted Budget
Amended
Budget
Actual Through
11/30/2021
Percentage
Received
Actual Through
11/30/2020
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 58,183,000$ 58,183,000$ 14,140,585$ 24.30% 14,832,679$ (692,094)$ -4.67% Property Tax 71,559,000 71,559,000 10,626,422 14.85% 10,100,564 525,858 5.21% Transient Occupancy Tax 9,000,000 9,000,000 2,225,952 24.73% 828,701 1,397,251 168.61% Other Taxes 6,080,000 6,080,000 1,471,956 24.21% 1,480,404 (8,448) -0.57% Total Taxes 144,822,000 144,822,000 28,464,915 19.66% 27,242,348 1,222,567 4.49%
LICENSES & PERMITS
Business Licenses 900,000 900,000 366,699 40.74% 354,964 11,735 3.31% Fire Operation Permits 2,200,000 2,200,000 838,859 38.13% 718,646 120,213 16.73% Building Permits - - 264,849 N/A 3,451,710 (3,186,861) -92.33% Electric Permits - - 41,433 N/A 678,914 (637,481) -93.90% Plumbing Permits - - 24,900 N/A 454,269 (429,369) -94.52% Mechanical Permits - - 32,910 N/A 521,292 (488,382) -93.69% Miscellaneous Permits 60,000 60,000 27,309 45.52% 25,999 1,310 5.04% Total Licenses & Permits 3,160,000 3,160,000 1,596,959 50.54% 6,205,794 (4,608,835) -74.27% FINES & PENALTIES 1,496,135 1,496,135 141,737 9.47% 180,965 (39,228) -21.68% INTERGOVERNMENTAL 26,205,801 26,535,801 133,649 0.50% 89,001 44,648 50.17% CHARGES FOR SERVICES 30,003,443 30,003,443 11,849,960 39.50% 12,351,344 (501,384) -4.06% CONTRIBUTION IN LIEU 24,700,000 24,700,000 10,738,907 43.48% 10,143,119 595,788 5.87%
USE OF MONEY & PROPERTY
Interest 2,600,000 2,600,000 214,768 8.26% 104,463 110,305 105.59% Rent 9,115,722 9,298,022 3,928,228 42.25% 3,451,926 476,302 13.80% Total Use of Money & Property 11,715,722 11,898,022 4,142,996 34.82% 3,556,389 586,607 16.49% MISCELLANEOUS REVENUES 198,000 198,000 300,227 151.63% 133,646 166,581 124.64%
LAND PROCEED - - - N/A - - N/A
OTHER FINANCING SOURCES
Operating Transfer In - Storm Drain 1,454,000 1,454,000 1,454,000 100.00% 1,460,000 (6,000) -0.41% Operating Transfer In - Reserves 32,390,871 32,456,888 32,456,888 100.00% 39,262,333 (6,805,445) -17.33% Operating Transfer In - Fund Balances(1) - 4,817,658 4,817,658 100.00% 4,273,692 543,966 12.73% Operating Transfer In - Miscellaneous 5,005,399 5,427,399 5,427,399 100.00% 3,547,419 1,879,980 53.00% Total Other Financing Sources 38,850,270 44,155,945 44,155,945 100.00% 48,543,444 (4,387,499) -9.04%
STADIUM OPERATION
Charges for Services 7,466,069 7,466,069 1,356,594 18.17% 1,365,335 (8,741) -0.64% Rent and Licensing 717,500 717,500 161,511 22.51% - 161,511 N/A Total Stadium Operation 8,183,569 8,183,569 1,518,105 18.55% 1,365,335 152,770 11.19% TOTAL GENERAL FUND 289,334,940$ 295,152,915$ 103,043,401$ 34.91% 109,811,385$ (6,767,983)$ -6.16% (1) The Operating Transfer In - Fund Balances includes the carryover encumbrances of open purchase orders as of June 30, 2021 and mid year budget amendment from reserves.
Function
CITY OF SANTA CLARA
GENERAL FUND
REVENUES OVERVIEW AND COMPARISON BY TYPE
FISCAL YEAR 2021/22 PY REVENUE COMPARISON
5 City of Santa Clara
Financial Status Report as of November 30, 2021
General Fund Revenues
Sales Tax: The City of Santa Clara sales tax rate is 9.0%, of which the City receives 1.0%. As of November 30, 2021, $14.1 million has been collected, which is down $0.7 million (down 4.7%) from the prior year level and is based on performance through the first quarter of the fiscal year. This figure, however, included a large negative adjustment for periods prior to 2020. Excluding the adjustments to prior periods, local economic performance was actually up 23.2% in the third quarter of calendar year 2021 with growth in all sectors: Business-to-Business (up 13.4%), General Retail (up 48.7%), Construction (up 36.5%), Food Products (up 58.0%), and Transportation (up 14.4%). The countywide pool, however, was down 6.9%. Internet sales represents a sizeable amount of the City’s sales tax revenue. The County pool, which includes internet sales, accounts for approximately 20% of the sales tax the City receives. Overall, annual Sales Tax growth of 3.6% is needed to meet the budgeted estimate of $58.2 million.
Property Tax: Through November, 14.9% of the property tax budgeted estimate has been received.
The majority of property tax revenue is collected in February and April each year. Based on initial information from the County of Santa Clara, property tax receipts are projected to end the year close to the Adopted Budget estimate of $71.6 million.
Transient Occupancy Tax (TOT): TOT is calculated as a percentage of City hotel/motel room charges. The City’s current TOT rate is 9.5%. This rate increased to 11.5% in January 2022. Through November 30, 2021, approximately $2.2 million has been received, which is significantly higher than receipts through the same period last fiscal year of only $0.8 million. However, receipts remain 66% below the pre-COVID 19 level of $6.5 million received through November 2019. As businesses continue to reopen and travel restrictions lifted, it is anticipated that TOT will continue to increase compared to last fiscal year. To meet the budgeted estimate, collections will need to triple from just under $3.0 million in FY 2020/21 to $9.0 million in FY 2021/22.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $1.5 million through November, which is on par with the same collection levels last fiscal year. While receipts in the documentary transfer tax are tracking above levels collected through the same period last fiscal year, receipts in the franchise tax category are lower than prior year levels. Growth of 4.4% is needed to meet the budgeted estimate of $6.1 million.
Licenses & Permits: Includes business licenses, fire operation permits, and miscellaneous permits and fees. Effective FY 2021/22, building, electric, plumbing and mechanical permits have all been budgeted in the new Building Development Services Fund, which will be reflected in the Special Revenue section of this report. Excluding the development revenues that have been erroneously booked in this category, licenses and permits revenue collections are tracking at par with receipts totaling $1.2 million, or 39% of the budget of $3.2 million. Receipts are tracking within estimated levels through November.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue of $0.1 million collected in this category through November is tracking to end the year well
6 City of Santa Clara
Financial Status Report as of November 30, 2021
below the budgeted estimate of $1.5 million largely due to the waiving of late fees on utility billing in response to COVID-19. The City will be applying for the California Arrearage Payment Program in order to alleviate the arrearages accrued as a result of the City’s bill relief period.
Intergovernmental: Includes federal stimulus funds, motor vehicle fees, state homeowner tax relief, state mandated reimbursement and redistribution of land sale proceeds and ground leases from the Successor Agency. Through November 30, 2021, $0.1 million has been received, which is higher than receipts through the same period last year and reflects differences in planned payments.
Charges for Services: Includes various engineering fees, administrative fees, and community service revenue from various recreational activities. Through November 30, 2021, collections totaled approximately $11.8 million or 39.5% of the budget. This reflects a 4% decrease compared to last year’s collections through the same period of $12.4 million. The decrease is mainly attributable to the plan check and sign fees now being recorded in the newly established Building Development Services Fund. This decrease is partially offset by higher collections in the planning and zoning fees, fire construction permits, and miscellaneous charges for services categories. Collections are tracking close to the budgeted estimate.
SVP Transfer: In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund. As of November 30, 2021, $10.7 million has been received which is on par for this time of year. This collection level, however, is based on the budgeted estimate and will be trued up at the end of the fiscal year. Growth of less than 1% from the prior year is needed to meet the budgeted estimate of $24.7 million.
Use of Money & Property: Includes realized investment income and rental income. Interest income and rent revenue collections totaled $4.1 million, or 34.8% of the budget. This reflects a $0.6 million increase from prior year collection levels. The increase was primarily in the rent category.
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through November 30, 2021, collections of $0.3 million have exceeded the budgeted estimate of $0.2 million and are approximately 125% higher than collections through the same period last year.
Stadium Operation: As of November 30, 2021, charges for services collected through the Stadium totaled $1.5 million, which is below par for this time of year. This is due in part to the timing of when the City receives reimbursements. Current year collections are approximately 11% higher than collections through the same period last year resulting from the reopening of Stadium for events.
7 City of Santa Clara
Financial Status Report as of November 30, 2021
General Fund Expenditures
As of November 30, 2 021, $136.6 million or 46.3% of the General Fund operating budget had been expended. Overall, expenditures in the General Fund are w ithin budgeted levels through November.
Departmental expenditures totaled $91.3 million, or 37.2% of the budget, which is below the par level of 42% o f the budget. Several cost -control measures that were implemented in FY 2019/ 20 remain in place to generate expenditure savings to partially offset the drop in r evenues associated with COVID-
19. These measures include a hiring freeze and contro ls around overtime, as-needed staff, marketing, travel, technology and vehicle purchases. With these measures, expenditures are expected to end the year below budget.
Adopted Budget
Amended
Budget
Actual Through
11/30/2021
Percentage
Used
Actual Through
11/30/2020
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 6,824,333$ 7,006,924$ 1,313,812$ 18.75% 1,514,483$ (200,671)$ -13.25% City Council 829,205 829,205 336,175 40.54% 289,438 46,737 16.15% City Clerk 1,470,231 1,718,169 606,680 35.31% 625,529 (18,849) -3.01% City Manager 5,442,069 6,276,486 1,999,737 31.86% 2,137,948 (138,211) -6.46% City Attorney 3,097,380 3,119,380 976,791 31.31% 867,510 109,281 12.60% Human Resources 4,133,810 4,389,886 1,437,548 32.75% 1,304,144 133,404 10.23% Finance 17,439,442 18,055,818 6,296,892 34.87% 6,284,831 12,061 0.19% Total General Government 39,236,470 41,395,868 12,967,635 31.33% 13,023,883 (56,248) -0.43% PUBLIC WORKS 23,201,356 24,198,161 9,061,825 37.45% 9,243,982 (182,157) -1.97% COMMUNITY DEVELOPMENT 5,070,207 6,561,680 1,896,401 28.90% 5,545,909 (3,649,508) -65.81% PARKS AND RECREATION 20,982,990 21,433,077 7,339,086 34.24% 7,023,333 315,753 4.50%
PUBLIC SAFETY
Fire 60,581,403 61,011,002 25,794,026 42.28% 25,083,965 710,061 2.83% Police 79,870,137 79,983,531 30,830,143 38.55% 30,462,273 367,870 1.21% Total Public Safety 140,451,540 140,994,533 56,624,169 40.16% 55,546,238 1,077,931 1.94% LIBRARY 10,764,727 10,895,605 3,424,403 31.43% 3,654,193 (229,790) -6.29% DEPARTMENTAL TOTAL 239,707,290 245,478,924 91,313,519 37.20% 94,037,538 (2,724,019) -2.90%
OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 23,250,142 23,250,142 23,250,142 100.00% 1,012,445 22,237,697 2196.44% Operating Transfer Out - Debt Services 2,501,439 2,501,439 2,501,439 100.00% 2,500,344 1,095 0.04% Operating Transfer Out - Maintenance Dtrct 771,349 771,349 771,349 100.00% 990,929 (219,580) -22.16% Operating Transfer Out - Cemetery 850,000 850,000 850,000 100.00% 771,769 78,231 10.14% Operating Transfer Out - CIP 11,773,925 11,773,925 11,773,925 100.00% 19,678,672 (7,904,747) -40.17% Operating Transfer Out - Reserves 3,309,009 3,309,009 3,309,009 100.00% 1,065,850 2,243,159 210.46% Total Other Financing Uses 42,455,864 42,455,864 42,455,864 100.00% 26,020,009 16,435,855 63.17% STADIUM OPERATION 7,171,786 7,218,126 2,871,639 39.78% 852,608 2,019,031 236.81% TOTAL GENERAL FUND 289,334,940$ 295,152,915$ 136,641,022$ 46.29% 120,910,155$ 15,730,867$ 13.01% Function
CITY OF SANTA CLARA
GENERAL FUND
EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2021/22 PY EXPENDITURES COMPARISON
8 City of Santa Clara
Financial Status Report as of November 30, 2021
General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances by department.
Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. As of November 30, 2021, expenditures totaled $1.3 million, or 18.8% of the budget. These expenditures are well below the par level of 42% and the prior year level of $1.5 million, particularly in the advertising and community promotion expenses.
City Attorney: As of November 30, 2021, actual expenditures totaled approximately $0.9 million, which is 31% of the budget, which is below par. This is mainly attributable to lower salary and as-needed spending. Spending is above the total expenditures through the same time last fiscal year by 12.6%.
This is a result of the reallocation of contractual services from the Special Liability Insurance Fund to the City Attorney’s Office operating budget.
City Clerk: Through November, actual expenditures were tracking below budget at $0.6 million or approximately 35.3% of the budget. This reflects a decrease of 3% over last year’s spending through the same period. The primary driver for the decrease in spending is the Granicus costs which are paid every other year.
City Council: Through November, expenditures were at 40.5% of budget, which is at par. Compared to the same period through last fiscal year, this reflects a spending increase of approximately 16%. As- needed expenditures are higher than last fiscal year.
City Manager: The actual expenditures through November 30, 2021 totaled $2.0 million, or 31.9% of the budget, which is below par for this time of the year. Expenditures are 6.5% lower compared with the spending level through the same period last fiscal year. This decrease in expenditures is related to the reallocation of City memberships and mandated costs from the City Manager’s Office budget to Non- Departmental in addition to lower advertising and contractual services expenditures.
Community Development Department: This department consists of three divisions: Planning, Building, and Housing and Community Services. Effective this fiscal year, the Building division of this department has been moved to the newly established Building Development Services Fund, which falls under the special revenue section of this report. Through November, departmental expenditures for the Planning and Housing and Community Services divisions totaled $1.9 million, or approximately 28.9%, which is below the par level of 42%. This is a result of vacancies in the department. Expenditures were also well below the spending through the same period last fiscal year due to the change in funding for the Building Division.
Finance Department: Through November, the Department’s expenditures totaled $6.3 million, or
34.8% of the budget, which is below par. This is mainly attributable to lower expenditures in the operating supplies and contractual services categories. This expenditure level was in line with levels from last fiscal year.
9 City of Santa Clara
Financial Status Report as of November 30, 2021
Fire Department: As of November 30, 2021, actual expenditures in the General Fund totaled $25.8 million, or 42.8% of the budget, which is slightly above par. These expenditures reflect a 2.8% increase from expenditures through the same period last fiscal year. All COVID-19 related expenditures have been charged centrally to the Other City Departments Operating Grant Trust Fund. The Fire Department has charged approximately $0.2 million to this fund, bringing total expenditures, including the General Fund, to approximately $26.0 million. Overtime expenditures are tracking at 84.4%, which is above par for this time of year. While this overtime figure is high, it is important to note that overtime is used to backfill for vacant positions and the vacancy savings offset a portion of the overtime costs.
Fire Department expenditures have also been impacted by mutual aid deployments to address wildland fires (Caldor, Dixie, River and Beckwourth complex fires), for which the City will receive reimbursement.
Once those reimbursements are received and allocated to the Fire Department, expenditures will be tracking within estimated levels. Budget actions will be brought forward later in the fiscal year to recognize and budget those revenues.
Library Department: Through November, actual expenditures totaled $3.4 million, or 31.4% of the budget, which is below par and lower than expenditure levels through the same period last fiscal year.
COVID-19 precautions have continued to impact Library operations this year, resulting in lower expenditures. A phased reopening is in progress, but this schedule has been delayed due to the increase in COVID-19 cases resulting from the latest Omicron variant.
Parks and Recreation Department: Through November, actual expenditures totaled approximately $7.3 million, or 34.2% of the budget, which is below par, and consistent with the prior year actuals of $7.0 million. The department has resumed most activities that were previously impacted by COVID-19 restrictions. However, some programming continues to be impacted by the staff vacancies.
Police Department: Expenditures as of November 30, 2021 are tracking slightly below expected levels at $30.8 million, or 38.6% of the budget. Expenditures are consistent with the spending levels last fiscal year. Similar to the Fire Department, Police Department expenditures related to COVID-19 have also been charged to the Other City Departments Operating Grant Trust Fund. Through November, charges to this fund totaled approximately $0.05 million. Accounting for the General Fund and Other City Departments Operating Grant Trust Fund, department expenditures are still tracking slightly below par.
Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures totaled $2.9 million through November and are tracking slightly below budgeted levels. However, this is significantly higher than expenditures through the same period last year, as a direct result of the reopening of the Stadium for events.
10 City of Santa Clara
Financial Status Report as of November 30, 2021
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of November 30, 2021. The amended budget for both reflects carryover appropriations from fiscal year 2021/22 in addition to budget amendments approved by the City Council through November 2021.
Effective July 1, 2021, all Building Division revenues and expenditures are now budgeted and accounted for in the new Building Development Services Fund, which is included in the table below.
Revenues totaled approximately $8.6 million, while expenditures totaled approximately $6.4 million through the end of November. Overall, revenues are tracking above par while expenditures are tracking below budgeted levels.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 11/30/2021 received 11/30/2020 Prior Year Change Housing Authority Fund 261,000$ 261,000$ 214,539$ 82.20% 315,011$ (100,472)$ -31.89% City Affordable Housing Fund 657,000 657,000 666,865 101.50% 204,626 462,239 225.89% Housing Successor Fund 350,000 350,000 332,982 95.14% 577,813 (244,831) -42.37% Housing and Urban Development 1,957,103 1,956,086 1,318,190 67.39% 539,033 779,157 144.55% Building Development Services
Fee Fund
13,630,000 13,630,000 6,096,547 44.73% 0 6,096,547 100.00% TOTAL 16,855,103$ 16,854,086$ 8,629,123$ 51.20% 1,636,483$ 6,992,640$ 427.30% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 11/30/2021 used 11/30/2020 Prior Year Change Housing Authority Fund 363,099$ 483,099$ 55,287$ 11.44% 63,017$ (7,730)$ -12.27% City Affordable Housing Fund 1,431,111 2,852,650 443,835 15.56% 317,558 126,277 39.77% Housing Successor Fund 915,640 1,260,001 343,226 27.24% 276,504 66,722 24.13% Housing and Urban Development 3,684,839 5,429,455 1,333,229 24.56% 978,624 354,605 36.24% Building Development Services
Fee Fund
12,256,059 12,256,059 4,183,991 34.14% 0 4,183,991 100.00% TOTAL 18,650,748$ 22,281,264$ 6,359,568$ 28.54% 1,635,703$ 4,723,865$ 288.80%
PRIOR YEAR EXPENDITURE COMPARISON
CITY OF SANTA CLARA
SPECIAL REVENUE FUNDS
REVENUE AND EXPENDITURE - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2021/22 PRIOR YEAR REVENUE COMPARISON EXPENDITURES - FISCAL YEAR 2021/22
11 City of Santa Clara
Financial Status Report as of November 30, 2021
Governmental Capital Improvement Funds
The table below lists the total amended budget amounts for the Capital Improvement Funds, which consist of current year appropriations, prior year carryover balances in Governmental Capital Improvement Funds, and budget amendments approved through November 2021. As of November 30, 2021, these capital fund expenditures totaled just under $11.5 million, or 7.8% of the amended budget.
As part of the adoption of the FY 2021/22 and FY 2022/23 operating budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2021. Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year- End Report for FY 2020/21, approved at the December 14, 2021 Council meeting. These adjustments will be reflected in later Monthly Financial Status Reports.
The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program (CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.
EXPENDITURES - FISCAL YEAR 2021/22
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2021 Used Parks & Recreation 7,085,289$ 15,478,055$ 22,563,344$ 860,086$ 3.81% Streets & Highways 26,869,803 62,313,089 89,182,892 7,876,570 8.83% Storm Drain 592,169 10,471,505 11,063,674 1,317,029 11.90% Fire 837,110 1,017,587 1,854,697 41,661 2.25% Library 7,872 246,601 254,473 14,578 5.73% Public Buildings 397,953 7,547,118 7,945,071 370,221 4.66% General Gov't - Other 1,555,000 10,228,593 11,783,593 756,551 6.42% Related Santa Clara Developer 968,103 1,326,191 2,294,294 287,454 12.53% Tasman East Specific
Infrastructure Improvement
Fund
23,757 - 23,757 204 0.86% TOTAL 38,337,056$ 108,628,739$ 146,965,795$ 11,524,354$ 7.84%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
12 City of Santa Clara
Financial Status Report as of November 30, 2021
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of November 30, 2021. Overall, revenues and expenditures are tracking below budgeted levels with revenues tracking at 34.9% of the budget and expenditures tracking at 38.3% of the budget.
Both revenues and expenditures are tracking above last fiscal year levels reflecting current activity levels. The increase in expenditures in the Electric Utility is primarily due to the higher debt retirement costs as well as higher resource costs related to transmission and wheeling (transportation of electric energy from within an electrical grid to an electrical load outside the grid boundaries). In the Solid Waste Utility Fund, expenditures are up primarily in the garbage collections, disposal and recycling accounts resulting from higher contractual services costs. The increase in the Water Recycling Fund is related to the timing of resource payments, with this fiscal year’s occurring earlier.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 11/30/2021 received 11/30/2020 Prior Year Change Electric Utility Fund 555,810,147$ 555,810,147$ 195,042,240$ 35.09% 182,470,031$ 12,572,209$ 6.89% Water Utility Fund 49,489,630 49,489,630 19,859,163 40.13% 20,887,520 (1,028,357) -4.92% Sewer Utility Fund 58,344,697 58,344,697 15,070,015 25.83% 16,370,898 (1,300,883) -7.95% Cemetery Fund 600,000 600,000 301,639 50.27% 204,420 97,219 47.56% Solid Waste Utility Fund 33,610,000 33,610,000 12,303,397 36.61% 9,084,457 3,218,940 35.43% Water Recycling Fund 5,703,831 5,703,831 2,839,755 49.79% 2,644,821 194,934 7.37% TOTAL REVENUE 703,558,305$ 703,558,305$ 245,416,209$ 34.88% 231,662,147$ 13,754,062$ 5.94% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 11/30/2021 Used 11/30/2020 Prior Year Change Electric Utility Fund 511,251,732$ 515,132,550$ 198,844,708$ 38.60% 158,539,670$ 40,305,038$ 25.42% Water Utility Fund 47,197,617 47,580,260 17,485,087 36.75% 19,385,193 (1,900,106) -9.80% Sewer Utility Fund 30,565,333 30,707,268 13,495,385 43.95% 12,138,317 1,357,068 11.18% Cemetery Fund 1,480,235 1,480,235 583,538 39.42% 546,899 36,639 6.70% Solid Waste Utility Fund 33,323,675 36,981,208 11,120,798 30.07% 8,266,789 2,854,009 34.52% Water Recycling Fund 5,709,582 5,709,582 2,912,235 51.01% 1,644,546 1,267,689 77.08% TOTAL - Operating
Appropriations
629,528,174$ 637,591,103$ 244,441,751$ 38.34% 200,521,414$ 43,920,337$ 21.90% PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2021/22
CITY OF SANTA CLARA
ENTERPRISE OPERATING FUNDS
REVENUES AND EXPENSES - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2021/22 PRIOR YEAR REVENUE COMPARISON
Revenues in the electric (which also includes the Electric Debt Service Fund), water, and sewer utility (which also includes the Sewer Debt Service Fund) and water recycling funds are primarily from customer service charges. The activity levels for these customer service charges also impact the
13 City of Santa Clara
Financial Status Report as of November 30, 2021
resource and production costs on the expenditure side for these funds. The lower the revenue from customer service charges, the lower the expenditures in the resource and production category.
A summary of expenses in the Enterprise Capital Improvement Funds is detailed in the table below.
Actuals through November 2021 totaled approximately $51.7 million, or 21.4% of the amended budget.
Expenditures in the Sewer Utility Capital Fund were significantly higher as a result of the Regional Wastewater Facility project, which is managed alongside the City of San José. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2021/22 and FY 2022/23 budget adoption process for those projects that have not yet been completed.
Adjustments to the capital carryover amounts based on actual year-end expenditures were included as part of the Budgetary Year-End Report for FY 2020/21, approved at the December 14, 2021 Council meeting. These adjustments will be reflected in later Monthly Financial Status Reports.
Prior Year
Actual Actual
Fund Current Year Prior Year Total Amended Through Percentage Through Description Appropriation Carryforward Budget 11/30/2021 Used 11/30/2020 Electric Utility Fund 49,368,989$ 94,324,423$ 143,693,412$ 15,269,717$ 10.63% 16,914,158$ Street Lighting (1) - 5,953,560 5,953,560 61,670 1.04% 6,854 Water Utility Fund 6,285,000 5,815,672 12,100,672 3,579,815 29.58% 3,145,779 Sewer Utility Fund 47,536,944 25,449,390 72,986,334 31,528,512 43.20% 7,303,019 Cemetery Fund 8,409 351,635 360,044 7,303 2.03% - Solid Waste Utility Fund 623,700 46,677 670,377 365,163 54.47% 97,134 Water Recycling Fund 50,000 - 50,000 - 0.00% - Convention Center
Capital Fund
1,724,000 3,500,000 5,224,000 869,543 16.65% -
TOTAL - CIP
Appropriations
105,597,042$ 135,441,357$ 241,038,399$ 51,681,723$ 21.44% 27,466,944$ EXPENSES - FISCAL YEAR 2021/22
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
SUMMARY OF EXPENSES
(1) Street Lighting fund is part of Electric Capital Improvement Funds
14 City of Santa Clara
Financial Status Report as of November 30, 2021
Fund Reserves
By policy, City Council established the City’s General Contingency Reserve, under which reserves for Budget Stabilization and Capital Projects were established. • Budget Stabilization Reserve is set aside for weathering economic downturns, emergency financial crisis, or disaster situations. The reserve target is equal to the expenditures of the City’s General Fund operations for three months (90-day or 25% General Fund Adopted Operating Budget). In FY 2021/22, the City Council approved an exception to the policy to allow the Reserve to drop below the 25% level.
• Capital Projects Reserve earmarks funds for the Capital Improvement Program.
Other General Reserves and Enterprise Fund Reserves included in this report are highlighted as follows:
• Technology Fee Reserve is set aside to update and/or replace the City’s aging technology and to ensure internal controls are in compliance with current business standard and legal requirements.
• Land Sale Reserve is net proceeds from the sale of City-owned land, with interest earned on these funds available to be appropriated for General Fund operating expenditures. This reserve is available for appropriation by City Council action.
• The Electric Utility Reserve assures sufficient operating cash is available to ensure debt service coverage.
• The Replacement and Improvement Reserve in the Water and Sewer Utility Funds is for future capital improvement.
The table below summarizes select reserve balances.
15 City of Santa Clara
Financial Status Report as of November 30, 2021
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 53,103,092$
Capital Projects Reserve 7,630,016
Land Sale Reserve 22,739,828
Technology Fee Reserve 1,474,371
Rate Stabilization Fund Reserve 44,898,011$
Cost Reduction Fund Reserve 112,838,357
DVR Power Plant Contracts Reserve 78,163
Replacement & Improvement 303,090$
TOTALS 84,947,306$ 157,814,531$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
November 30, 2021
Note: The Capital Projects Reserve includes funding of $3.2 million set aside for projects programmed in FY 2022/23 through FY 2024/25 in the prior CIP.
16 City of Santa Clara
Financial Status Report as of November 30, 2021
Long-Term Interfund Advances
The funds below have made advances/loans which are not expected to be repaid within the next year.
The balances reflected in the table are through November 2021. The loan from the General Fund to Parks and Recreation Facilities reflects proceeds from the Land Sale Reserve for the purchase of property at the Reed and Grant Sports Park. This loan is anticipated to be repaid by 25% of future Mitigation Fee Act revenue until the loan is paid in full.
DETAIL OF LONG TERM INTERFUND ADVANCE BALANCES:
Fund Receiving Advance/Loan
Fund Making
Advance/Loan Type
Amount of
Advance/
Commitment
Cemetery General Fund Advance 7,961,149$
Parks and Recreation Facilities General Fund Loan 8,761,865 TOTALS 16,723,014$
Donations to the City of Santa Clara
Donations received by department during the month of November 2021 and for fiscal year 2021/22 are shown in the table below.
Department Nov-21
Fiscal Year
2021/22
Year To Date Designated Use
City Manager's Office -$ 115$ Help Your Neighbor Parks & Recreation 200 12,750 Case Management Parks & Recreation - 625 Wade Brummal
Police - 75,000 PD Team 200
TOTALS 200$ 88,490$