_____________________________________________________________________
MONTHLY FINANCIAL STATUS REPORT
January 2022
1 City of Santa Clara
Financial Status Report as of January 31, 2022
This report summarizes the City’s financial performance for the month ended January 31, 2022.
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 budget for revenues and expenditures was amended to $269.5 million to reflect carryover appropriations from fiscal year 2020/21 and various budget amendments approved by the City Council through January 2022.
Halfway through the fiscal year, General Fund revenues are currently tracking slightly below estimated levels. General Fund expenditures are tracking below budget and this trend is expected to continue as departments continue to control expenditures through various cost control measures.
Economic conditions have improved significantly since the start of the pandemic, with many indicators close to pre-pandemic levels. On a national level, the unemployment rate remained relatively flat, slightly decreasing from 4.0% in January 2022 to 3.8% in February 2022. 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 February, the number of unemployed persons decreased from 6.5 million in January 2022 to
6.3 million. This unemployment figure remains slightly above the pre-pandemic level of 5.7 million.1
In 2021, the Gross Domestic Product (GDP) increased by 5.7%, in contrast to the 3.4% decrease in 2020. The increase in 2021 reflected growth across all the major subcomponents, led by personal
1 https://www.bls.gov/news.release/pdf/empsit.pdf
2 City of Santa Clara
Financial Status Report as of January 31, 2022
consumption expenditures, non-residential fixed investment, exports, residential fixed investment, and private inventory investment.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 March 2022 UCLA
Anderson Forecast, GDP
is expected to reach the
pre-COVID trend by mid-
2022. On an annual
basis, the UCLA Forecast
projects continued GDP
growth of 4.3% in 2022,
2.8% in 2023, and 2.3%
in 2024. The UCLA
forecast, however, comes with
considerable uncertainty. Major
risk factors include the future
course of the pandemic as well as the impacts of the war between Russia and Ukraine.3
2 https://www.bea.gov/sites/default/files/2022-02/tech4q21_2nd.pdf 3 UCLA Anderson Forecast, January 2021
Source: UCLA Anderson Forecast and U.S. Bureau of Economic Analysis Note: $ Billions, chained 2012 prices
3 City of Santa Clara
Financial Status Report as of January 31, 2022
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 stayed flat at 5.8% in January 2022. With the continued addition of jobs, California has now regained 2.26 million jobs, or nearly 82% 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 3.4% in January 2022, up from a revised 2.9% in December 2021. This reflects a drop from the January 2021 level of 6.2% but is higher than the pre-pandemic February 2020 level of
2.6%. Between January 2021 and January 2022, employment in this region increased by 71,500 jobs, or 6.8%.The largest increases were in leisure and hospitality (up 33,200 jobs), food and drinking places (up 23,300 jobs), professional and business services (up 12,000 jobs), and private educational and health services (up 9,100 jobs).5
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://edd.ca.gov/Newsroom/unemployment-january-2022.htm 5 https://www.labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of January 31, 2022
General Fund Revenues
As of January 31, 2022, $109.1 million or 48.5% of the General Fund estimated revenue (excluding transfers) was received. Based on the timing of payments, a higher percentage of revenues are collected in the second half of the fiscal year. Transfers and use of reserves of $44.5 million have occurred as budgeted. While revenues are tracking slightly below the budgeted estimate, collections are higher when compared to collections last fiscal year (excluding transfers and various permits and charges for services that are now deposited into the new Building Development Services Fund and transfers).
Adopted Budget
Amended
Budget
Actual Through
01/31/2022
Percentage
Received
Actual Through
01/31/2021
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 58,183,000$ 58,183,000$ 22,666,505$ 38.96% 24,346,452$ (1,679,947)$ -6.90% Property Tax 71,559,000 71,559,000 37,721,113 52.71% 34,483,149 3,237,964 9.39% Transient Occupancy Tax 9,000,000 9,000,000 3,347,211 37.19% 1,309,334 2,037,877 155.64% Other Taxes 6,080,000 6,080,000 2,682,067 44.11% 2,100,618 581,449 27.68% Total Taxes 144,822,000 144,822,000 66,416,896 45.86% 62,239,553 4,177,343 6.71%
LICENSES & PERMITS
Business Licenses 900,000 900,000 486,320 54.04% 502,817 (16,497) -3.28% Fire Operation Permits 2,200,000 2,200,000 1,139,577 51.80% 1,085,482 54,095 4.98% Building Permits - - - N/A 4,090,173 (4,090,173) -100.00% Electric Permits - - - N/A 768,188 (768,188) -100.00% Plumbing Permits - - - N/A 523,662 (523,662) -100.00% Mechanical Permits - - - N/A 594,042 (594,042) -100.00% Miscellaneous Permits 60,000 60,000 37,516 62.53% 30,038 7,478 24.90% Total Licenses & Permits 3,160,000 3,160,000 1,663,413 52.64% 7,594,402 (5,930,989) -78.10% FINES & PENALTIES 1,496,135 1,496,135 205,366 13.73% 221,794 (16,428) -7.41% INTERGOVERNMENTAL 26,205,801 614,000 599,956 97.71% 254,035 345,921 136.17% CHARGES FOR SERVICES 30,003,443 30,003,443 16,631,094 55.43% 17,606,444 (975,350) -5.54% SILICON VALLEY POWER TRANSFER 24,700,000 24,700,000 15,034,470 60.87% 14,200,367 834,103 5.87%
USE OF MONEY & PROPERTY
Interest 2,600,000 2,600,000 865,946 33.31% 696,281 169,665 24.37% Rent 9,115,722 9,298,022 5,385,709 57.92% 4,492,649 893,060 19.88% Total Use of Money & Property 11,715,722 11,898,022 6,251,655 52.54% 5,188,930 1,062,725 20.48% MISCELLANEOUS REVENUES 198,000 198,000 399,612 201.82% 4,190,424 (3,790,812) -90.46%
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 32,758,819 32,758,819 100.00% 39,468,333 (6,709,514) -17.00% 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 44,457,876 44,457,876 100.00% 48,749,444 (4,291,568) -8.80%
STADIUM OPERATION
Charges for Services 7,466,069 7,466,069 1,655,345 22.17% 1,549,061 106,284 6.86% Rent and Licensing 717,500 717,500 286,278 39.90% 26,451 259,827 982.30% Total Stadium Operation 8,183,569 8,183,569 1,941,623 23.73% 1,575,512 366,111 23.24% TOTAL GENERAL FUND 289,334,940$ 269,533,045$ 153,601,962$ 56.99% 161,820,905$ (8,218,944)$ -5.08% 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 January 31, 2022
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 January 31, 2022, $22.7 million has been collected, which is down $1.7 million or 6.9% from the prior year level and is based on performance through the first quarter of the fiscal year and an advance payment for the second quarter. While not reflected in the collections through January, the City has received information on the cash receipts for second quarter of the fiscal year, which reflects growth of
14.8%. Overall, receipts are up 4.6% through the first two quarters of FY 2021/22. 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. Based on collections to date, receipts are projected to meet the budget.
Property Tax: Through January, 52.7% 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 information from the County of Santa Clara, property tax receipts are projected to end the year at or slightly above 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 11.5% as of January 2022. Through January 31, 2022, approximately $3.3 million has been received, which is significantly higher than receipts through the same period last fiscal year of only $1.3 million. However, receipts remain 68% below the pre-COVID 19 level of $10.5 million received through January 2020. As businesses continue to reopen, 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. With the January 2022 rate increase, TOT receipts are projected to end the year close to the budgeted estimate.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $2.7 million through January, which is 27.7% above receipts received through the same period 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 slightly lower than prior year levels.
Growth of 4.4% is needed to meet the budgeted estimate of $6.1 million. Collections are projected to meet the budgeted estimate.
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 is reflected in the Special Revenue section of this report. Licenses and permits revenue collections total $1.7 million, or 52.6% of the budget of $3.2 million. Receipts are tracking slightly below estimated levels through January and may end the year slightly below the budgeted estimate.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue of $0.2 million collected in this category through January is tracking to end the year well below
6 City of Santa Clara
Financial Status Report as of January 31, 2022
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 January 31, 2022, $0.6 million has been received, which is higher than receipts through the same period last year and reflects differences in planned payments. The federal stimulus funds ($26 million) have been moved to a separate American Rescue Plan Act Fund, which is reflected in this report.
Charges for Services: Includes various engineering fees, administrative fees, and community service revenue from various recreational activities. Through January 31, 2022, collections totaled approximately $16.6 million or 55.4% of the budget. This reflects a 5.5% decrease compared to last year’s collections through the same period of $17.6 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.
Silicon Valley Power Transfer: In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund. As of January 31, 2022, $15.0 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 $6.3 million, or 52.5% of the budget. This reflects a $1.1 million increase from prior year collection levels, primarily due to higher rent collections. This reflects differences in the timing of payments as well as the latest lease payment amounts.
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through January 31, 2022, collections of $0.3 million have exceeded the budgeted estimate of $0.2 million; however, are significantly lower than prior year collections of $4.2 million as a result of a one-time payment in FY 2021.
Stadium Operation: As of January 31, 2022, charges for services collected through the Stadium totaled $1.9 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 23.2% 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 January 31, 2022
General Fund Expenditures
As of January 31, 2022, $175.6 million or 65.2% of the General Fund operating budget had been expended. Departmental expenditures totaled $127.9 million, or 58.3% of the budget, which is at the par level of 58.3% of the budget. However, this percent expended is overstated due to the treatment of the public safety costs that are funded by the newly established American Rescue Plan Act (ARPA). As part of the FY 2020/21 Budgetary Year-End Report, $26 million of the Police and Fire Department’s budgets was reallocated to the newly established ARPA Fund. While the budget has been reduced, the associated expenditures have not yet been shifted to the new fund. Once that shift takes place, departmental expenditures will be tracking below budget. Fund Transfers of $43.1 million have occurred as budgeted.
Several cost-control measures that were implemented in FY 2019/20 remain in place to generate expenditure savings to partially offset the drop in revenues associated with COVID-19. These measures include a hiring freeze and controls around overtime, as-needed staff, marketing, travel, technology and vehicle purchases. With these measures, expenditures are expected to end the year below budget.
8 City of Santa Clara
Financial Status Report as of January 31, 2022
Adopted Budget
Amended
Budget
Actual Through
01/31/2022
Percentage
Used
Actual Through
01/31/2021
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 6,824,333$ 7,571,155$ 2,567,224$ 33.91% 2,070,166$ 497,058$ 24.01% City Council 829,205 829,205 486,641 58.69% 421,449 65,192 15.47% City Clerk 1,470,231 1,718,169 799,301 46.52% 1,167,739 (368,438) -31.55% City Manager 5,442,069 6,276,486 2,846,907 45.36% 2,892,295 (45,388) -1.57% City Attorney 3,097,380 3,119,380 1,419,126 45.49% 1,247,366 171,760 13.77% Human Resources 4,133,810 4,389,886 2,089,060 47.59% 1,804,634 284,426 15.76% Finance 17,439,442 18,273,518 8,960,984 49.04% 8,846,135 114,849 1.30% Total General Government 39,236,470 42,177,799 19,169,243 45.45% 18,449,784 719,459 3.90% PUBLIC WORKS 23,201,356 24,198,161 12,723,439 52.58% 13,078,417 (354,978) -2.71% COMMUNITY DEVELOPMENT 5,070,207 5,480,607 2,684,587 48.98% 8,121,221 (5,436,634) -66.94% PARKS AND RECREATION 20,982,990 21,433,077 10,355,185 48.31% 9,765,916 589,269 6.03%
PUBLIC SAFETY
Fire 60,581,403 49,830,070 35,277,582 70.80% 34,488,752 788,830 2.29% Police 79,870,137 65,242,662 42,754,936 65.53% 43,439,331 (684,395) -1.58% Total Public Safety 140,451,540 115,072,732 78,032,518 67.81% 77,928,083 104,435 0.13% LIBRARY 10,764,727 10,895,605 4,967,166 45.59% 4,983,089 (15,923) -0.32% DEPARTMENTAL TOTAL 239,707,290 219,257,981 127,932,138 58.35% 132,326,510 (4,394,372) -3.32%
OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 23,250,142 23,851,216 23,851,216 100.00% 1,013,778 22,837,438 2252.71% 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% 926,920 (155,571) -16.78% 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% 4,933,085 (1,624,076) -32.92% Total Other Financing Uses 42,455,864 43,056,938 43,056,938 100.00% 29,824,568 13,232,370 44.37% STADIUM OPERATION 7,171,786 7,218,126 4,611,946 63.89% 1,031,751 3,580,195 347.00% TOTAL GENERAL FUND 289,334,940$ 269,533,046$ 175,601,022$ 65.15% 163,182,829$ 12,418,193$ 7.61% Function
CITY OF SANTA CLARA
GENERAL FUND
EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2021/22 PY EXPENDITURES COMPARISON
9 City of Santa Clara
Financial Status Report as of January 31, 2022
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 January 31, 2022, expenditures totaled $2.6 million, or 33.9% of the budget. These expenditures are well below the par level of 58%, but above the prior year level of $2.0 million. This is a result of the reallocation of City memberships from the City Manager’s Office to the Non-Departmental budget. Additionally, contractual services are higher than last fiscal year due to an increase in the permitting system licensing costs.
City Attorney: As of January 31, 2022, actual expenditures totaled approximately $1.4 million, which is below par at 45.5% of the budget. 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 13.8%. This is a result of the reallocation of contractual services from the Special Liability Insurance Fund to the City Attorney’s Office operating budget. Additionally, higher separation payout expenditures occurred this fiscal year compared to last fiscal year.
City Clerk: Through January, actual expenditures were tracking below budget at $0.8 million or approximately 46.5% of the budget. This reflects a decrease of 31.6% 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 January, expenditures were at 58.7% of budget, which is at par. Compared to the same period through last fiscal year, this reflects a spending increase of approximately 15.5% which is a result of higher as-needed and separation payout expenditures compared to last fiscal year.
City Manager: The actual expenditures through January 31, 2022 totaled $2.8 million, or 45.4% of the budget, which is below par for this time of the year. Expenditures are 1.6% 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 January, departmental expenditures for the Planning and Housing and Community Services divisions totaled $2.7 million, or approximately 49%, which is below the par level of 58.3%. 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 January, the Department’s expenditures totaled $9.0 million, or 49% of the budget, which is below par. This is mainly attributable to lower expenditures in the operating
10 City of Santa Clara
Financial Status Report as of January 31, 2022
supplies and contractual services categories. This expenditure level was in line with levels from last fiscal year.
Fire Department: As of January 31, 2022, actual expenditures in the General Fund totaled $35.3 million, or 70.8% of the budget, which is above par. These expenditures reflect a 2.3% increase from expenditures through the same period last fiscal year. As discussed above, the Fire Department percent expended is overstated due to the treatment of public safety costs funded by ARPA funds. As part of the FY 2020/21 Budgetary Year-End Report, $11.2 million of the Fire Department’s budget was reallocated to the newly ARPA Fund to reflect public safety costs covered through ARPA. Eligible Fire expenditures, however, have not yet been moved to this new fund. The expenditures will be shifted to the new fund in February and March, which will be reflected in future monthly financial reports.
Factoring out that impact, expenditures would have been tracking at 57.8% of the budget through January, which is within budget.
Overtime expenditures are tracking at 101%, 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. Budget actions are recommended in this report to recognize $1.8 million and appropriate those funds to support Fire Department operations. Of this amount $0.6 million will be applied towards the purchase of a new relief Fire Engine. These funds along with the shift of existing non-personnel funding of $0.1 million in the Fire Department allocated for this purpose will be transferred to the Vehicle Replacement Fund to purchase the new engine.
Library Department: Through January, actual expenditures totaled $5.0 million, or 45.6% 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 was delayed due to the increase in COVID-19 cases resulting from the latest Omicron variant.
Parks and Recreation Department: Through January, actual expenditures totaled approximately $10.4 million, or 48.3% of the budget, which is below par, and is slightly higher than the prior year actuals of $9.8 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: As of January 31, 2022, actual expenditures in the General Fund totaled $42.8 million, or 65.5% of the budget, which is above par. Expenditures are slightly below the spending levels last fiscal year. As discussed above, the Police Department percent expended is overstated due to the treatment of public safety costs funded by ARPA funds. As part of the FY 2020/21 Budgetary Year-End Report, $14.7 million of the Police Department’s budget was reallocated to the newly ARPA Fund to reflect public safety costs covered through ARPA. Eligible Police expenditures, however, have not yet been moved to this new fund. The expenditures will be shifted to the new fund in February and March,
11 City of Santa Clara
Financial Status Report as of January 31, 2022
which will be reflected in future monthly financial reports. Factoring out that impact, expenditures would have been tracking at 53.5% of the budget through January, which is within budget.
Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Through January, stadium expenditures totaled $4.6 million, or 63.9% of the budget. This is significantly higher than expenditures through the same period last year, as a direct result of the reopening of the Stadium for events.
12 City of Santa Clara
Financial Status Report as of January 31, 2022
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of January 31, 2022. The amended budget for both reflects carryover appropriations from fiscal year 2021/22 in addition to budget amendments approved by the City Council through January 2022.
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.
Additionally, as approved by City Council on December 14, 2021 as part of the FY 2020/21 Budgetary Year-End Report, the ARPA Fund was established. Approximately $14.7 million and $11.2 million was moved from the Police Department and Fire Department, respectively, to the new ARPA Fund in order to separately track public safety expenditures eligible to be covered by these funds. The shift of public safety expenditures will be reflected in next month’s financial report. Revenues totaled approximately $26 million, while expenditures totaled approximately $8.7 million through the end of January. Overall, both revenues and expenditures are tracking below par.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 1/31/2022 received 1/31/2021 Prior Year Change Housing Authority Fund 261,000$ 5,461,000$ 236,259$ 4.33% 327,733$ (91,474)$ -27.91% City Affordable Housing Fund 657,000 6,657,000 1,445,601 21.72% 508,506 937,095 184.28% Housing Successor Fund 350,000 350,000 491,421 140.41% 701,161 (209,740) -29.91% Housing and Urban Development 1,957,103 5,011,774 1,511,246 30.15% 1,471,815 39,431 2.68% Building Development Services
Fee Fund
13,630,000 13,630,000 9,099,505 66.76% 0 9,099,505 100.00% American Rescue Plan Act Fund 0 25,921,801 13,248,095 51.11% 0 13,248,095 100.00% TOTAL 16,855,103$ 57,031,575$ 26,032,127$ 45.65% 3,009,215$ 23,022,912$ 765.08% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 1/31/2022 used 1/31/2021 Prior Year Change Housing Authority Fund 363,099$ 7,183,099$ 67,999$ 0.95% 81,146$ (13,147)$ -16.20% City Affordable Housing Fund 1,431,111 12,852,650 534,608 4.16% 423,465 111,143 26.25% Housing Successor Fund 915,640 11,260,001 446,696 3.97% 368,981 77,715 21.06% Housing and Urban Development 3,684,839 5,429,455 1,639,497 30.20% 1,548,879 90,618 5.85% Building Development Services
Fee Fund
12,256,059 14,757,132 6,009,680 40.72% 0 6,009,680 100.00% American Rescue Plan Act Fund 0 25,921,801 0 0.00% 0 0 100.00% TOTAL 18,650,748$ 77,404,138$ 8,698,480$ 11.24% 2,422,471$ 6,276,009$ 259.07%
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
13 City of Santa Clara
Financial Status Report as of January 31, 2022
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 January 2022. As of January 31, 2022, these capital fund expenditures totaled $16.5 million, or 12.2% of the amended budget. As part of the adoption of the FY 2021/22 and FY 2022/23 operating budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2021. Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2020/21, approved at the January 14, 2021 Council meeting. These adjustments are reflected below.
The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program (CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.
EXPENDITURES - FISCAL YEAR 2021/22
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 1/31/2022 Used Parks & Recreation 9,973,977$ 12,169,765$ 22,143,742$ 1,131,411$ 5.11% Streets & Highways 40,275,766 38,569,145 78,844,911 10,396,405 13.19% Storm Drain 7,433,140 3,053,568 10,486,708 2,201,581 20.99% Fire 963,970 838,709 1,802,679 131,917 7.32% Library 24,374 190,107 214,481 15,890 7.41% Public Buildings 4,368,471 3,466,169 7,834,640 923,780 11.79% General Gov't - Other 2,464,262 8,838,081 11,302,343 1,219,480 10.79% Related Santa Clara Developer 1,177,106 1,166,044 2,343,150 506,960 21.64% Tasman East Specific
Infrastructure Improvement
Fund
23,757 4,836 28,593 1,839 6.43% TOTAL 66,704,823$ 68,296,424$ 135,001,247$ 16,529,263$ 12.24%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
14 City of Santa Clara
Financial Status Report as of January 31, 2022
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of January 31, 2022. Overall, revenues and expenditures are tracking below budgeted levels with revenues tracking at 52.9% of the budget and expenditures tracking at 54.2% 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.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 1/31/2022 received 1/31/2021 Prior Year Change Electric Utility Fund 555,810,147$ 555,810,147$ 289,792,335$ 52.14% 267,511,748$ 22,280,587$ 8.33% Water Utility Fund 49,489,630 49,489,630 27,559,165 55.69% 28,550,082 (990,917) -3.47% Sewer Utility Fund 58,344,697 58,344,697 32,707,154 56.06% 23,112,247 9,594,907 41.51% Cemetery Fund 600,000 600,000 453,944 75.66% 307,735 146,209 47.51% Solid Waste Utility Fund 33,610,000 33,764,000 17,980,205 53.25% 13,280,199 4,700,006 35.39% Water Recycling Fund 5,703,831 5,703,831 3,672,122 64.38% 3,466,265 205,857 5.94% TOTAL REVENUE 703,558,305$ 703,712,305$ 372,164,925$ 52.89% 336,228,276$ 35,936,649$ 10.69% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 1/31/2022 Used 1/31/2021 Prior Year Change Electric Utility Fund 511,251,732$ 515,132,550$ 285,592,597$ 55.44% 230,722,102$ 54,870,495$ 23.78% Water Utility Fund 47,197,617 47,580,260 23,808,553 50.04% 24,695,748 (887,195) -3.59% Sewer Utility Fund 30,565,333 30,707,268 15,540,614 50.61% 18,398,379 (2,857,765) -15.53% Cemetery Fund 1,480,235 1,480,235 818,203 55.28% 759,975 58,228 7.66% Solid Waste Utility Fund 33,323,675 37,135,208 16,707,763 44.99% 11,028,243 5,679,520 51.50% Water Recycling Fund 5,709,582 5,709,582 3,056,186 53.53% 3,594,177 (537,991) -14.97% TOTAL - Operating
Appropriations
629,528,174$ 637,745,103$ 345,523,916$ 54.18% 289,198,624$ 56,325,292$ 19.48% 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 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.
15 City of Santa Clara
Financial Status Report as of January 31, 2022
A summary of expenses in the Enterprise Capital Improvement Funds is detailed in the table below.
Actuals through January 2022 totaled approximately $62.8 million, or 23.9% of the amended budget.
Expenditures in the Sewer Utility Capital Fund were significantly higher as a result of the Regional Wastewater Facility project, which is managed alongside the City of San José. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2021/22 and FY 2022/23 budget adoption process for those projects that have not yet been completed.
Adjustments to the capital carryover amounts based on actual year-end expenditures were included as part of the Budgetary Year-End Report for FY 2020/21, approved at the January 14, 2021 Council meeting. These adjustments are reflected below.
Prior Year
Actual Actual
Fund Current Year Prior Year Total Amended Through Percentage Through Description Appropriation Carryforward Budget 1/31/2022 Used 1/31/2021 Electric Utility Fund 81,042,278$ 82,265,773$ 163,308,051$ 24,160,152$ 14.79% 23,878,640$ Street Lighting (1) 4,054 5,918,610 5,922,664 73,980 1.25% 10,555 Water Utility Fund 10,900,672 2,700,000 13,600,672 4,354,450 32.02% 4,098,592 Sewer Utility Fund 50,901,194 23,050,119 73,951,313 32,536,753 44.00% 8,350,047 Cemetery Fund 60,044 248,365 308,409 19,705 6.39% - Solid Waste Utility Fund 670,377 174,826 845,203 671,491 79.45% 192,105 Water Recycling Fund 50,000 - 50,000 - 0.00% 2,063 Convention Center
Capital Fund
1,724,000 3,642,265 5,366,265 1,001,689 18.67% -
TOTAL - CIP
Appropriations
145,352,619$ 117,999,958$ 263,352,577$ 62,818,220$ 23.85% 36,532,003$ 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
16 City of Santa Clara
Financial Status Report as of January 31, 2022
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.
17 City of Santa Clara
Financial Status Report as of January 31, 2022
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 53,615,880$
Capital Projects Reserve 7,275,070
Land Sale Reserve 20,596,711
Technology Fee Reserve 1,426,174
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 82,913,834$ 157,814,531$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
January 31, 2022
Note: The Capital Projects Reserve includes funding of $3.2 million set aside for projects programmed in FY 2022/23 through FY 2024/25 in the prior CIP.
18 City of Santa Clara
Financial Status Report as of January 31, 2022
Long-Term Interfund Advances
The funds below have made advances/loans which are not expected to be repaid within the next year.
The balances reflected in the table are through January 2022. The loan from the General Fund to Parks and Recreation Facilities reflects proceeds from the Land Sale Reserve for the purchase of property at the Reed and Grant Sports Park. This loan is anticipated to be repaid by 25% of future Mitigation Fee Act revenue until the loan is paid in full.
DETAIL OF LONG TERM INTERFUND ADVANCE BALANCES:
Fund Receiving Advance/Loan
Fund Making
Advance/Loan Type
Amount of
Advance/
Commitment
Cemetery General Fund Advance 7,961,149$
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 January 2022 and for fiscal year 2021/22 are shown in the table below.
Department Jan-22
Fiscal Year
2021/22
Year To Date Designated Use
City Manager's Office -$ 115$ Help Your Neighbor Parks & Recreation 50 12,800 Case Management Parks & Recreation - 1,675 Wade Brummal Parks & Recreation - 50 Roberta Jones Jr. Theater Police - 75,000 PD Team 200
TOTALS 50$ 89,640$