_____________________________________________________________________
MONTHLY FINANCIAL STATUS REPORT
February 2022
City of
Santa Clara
The Center of What 's Possible
1 City of Santa Clara
Financial Status Report as of February 28, 2022
This report summarizes the City’s financial performance for the month ended February 28, 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 February 2022.
Through February, General Fund revenues are currently tracking to end the year at or slightly below budgeted 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.
Overall, the General Fund is expected to end the year with additional ending fund balance.
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 3.8% in February 2022 to 3.6% in March 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 March, the number of unemployed persons decreased from 6.3 million in February 2022 to 6.0 million. This unemployment figure remains slightly above the pre-pandemic level of 5.7 million.1
In the advance estimate for the first quarter of 2022, GDP decreased at an annual rate of 1.4%, following an increase of 6.9% in the fourth quarter of 2021.2 This decline is the result of the resurgence
1 https://www.bls.gov/news.release/pdf/empsit.pdf
2 https://www.bea.gov/sites/de fault/files/2022-04/tech1q22_adv.pdf Chart 1. Unemployment rate, seasonally adjusted,
March 2019 - March 2022
Percerat
16.0 14.0
12.0 10.0
l
\
'-\
'---
8.0 6.0
4.0 2.0
J
-~
Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21
- -
Chart 2. Nonfarm payroll employment , seasonally adjusted , March 2019 - March 2022
Thousands
160,000
155,000
150,000
145,000
140,000
135,000
130,000
125,000
Mar-22 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22
2 City of Santa Clara
Financial Status Report as of February 28, 2022
of COVID-19 cases and decreases in government pandemic assistance. Additionally, issues stemming from supply chain and widespread inflation are also factors in the estimated decrease.
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
3 UCLA Anderson Forecast, March 2022
Source: UCLA And erson Forecast and U.S. Bureau of Economic Analysis Note: $ Billions, chained 2012 prices
35 25
15 5
-5
-15
-25
-35
Real GDP: Percent change from preceding quarter
Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql
2018 2019
Q2 Q3
2020
Q4 Ql Q2 Q3 Q4 Ql
2021 2022
U.S. Bureau of Economic Analysis Seasonally adjusted at annual rates Real GDP Levels,. Se2sooal ' · ~e:I Annual Rates, Actll31 and F«·ecast, 2016-202 Real GD , $ 8il llion:s
Zl, 00
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20 6 2017 2018
3 City of Santa Clara
Financial Status Report as of February 28, 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 dropped to 4.9% in March 2022.
With the continued addition of jobs, California has now regained 2.46 million jobs, or nearly 90% of the
2.76 million jobs lost due to COVID-19 in March and April 2020. Fewer than one million Californians are unemployed for the first time since February 2020.4
The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 2.5% in March 2022, down from the March 2021 level of 5.8% and the pre-pandemic February 2020 level of 2.6%. Between March 2021 and March 2022, employment in this region increased by 62,300 jobs, or 5.8%.The largest increases were in leisure and hospitality (up 27,300 jobs), food and drinking places (up 19,100 jobs), professional and business services (up 7,800 jobs), and private educational and health services (up 5,900 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/en/about_edd/news_releases_and_announcements/unemployment -March-2022/ 5 https://www.labormarketinfo. edd.ca.gov/file/lfmonth/sjos$pds.pdf San Jose-Sunnyvale-Santa Clara Metropolitan Statistical Area Unemployment Rate Historical Trend
.
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4 City of Santa Clara
Financial Status Report as of February 28, 2022
General Fund Revenues
As of February 28, 2022, $126.5 million or 56.2% 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 $44.4 million have occurred as budgeted. Revenues are tracking close to the budgeted estimate and 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).
Adopted Budget
Amended
Budget
Actual Through
02/28/2022
Percentage
Received
Actual Through
02/28/2021
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 58,183,000$ 58,183,000$ 30,205,907$ 51.92% 28,813,019$ 1,392,888$ 4.83% Property Tax 71,559,000 71,559,000 37,857,769 52.90% 34,594,415 3,263,354 9.43% Transient Occupancy Tax 9,000,000 9,000,000 4,132,301 45.91% 1,496,646 2,635,655 176.10% Other Taxes 6,080,000 6,080,000 3,440,736 56.59% 2,684,909 755,827 28.15% Total Taxes 144,822,000 144,822,000 75,636,713 52.23% 67,588,989 8,047,724 11.91%
LICENSES & PERMITS
Business Licenses 900,000 900,000 547,241 60.80% 558,470 (11,229) -2.01% Fire Operation Permits 2,200,000 2,200,000 1,272,174 57.83% 1,182,896 89,278 7.55% Building Permits - - - N/A 4,569,289 (4,569,289) -100.00% Electric Permits - - - N/A 863,707 (863,707) -100.00% Plumbing Permits - - - N/A 592,038 (592,038) -100.00% Mechanical Permits - - - N/A 675,227 (675,227) -100.00% Miscellaneous Permits 60,000 60,000 40,685 67.81% 44,479 (3,794) -8.53% Total Licenses & Permits 3,160,000 3,160,000 1,860,100 58.86% 8,486,106 (6,626,006) -78.08% FINES & PENALTIES 1,496,135 1,496,135 238,018 15.91% 236,467 1,551 0.66% INTERGOVERNMENTAL 26,205,801 614,000 2,164,125 352.46% 704,439 1,459,686 207.21% CHARGES FOR SERVICES 30,003,443 30,003,443 19,153,379 63.84% 20,885,087 (1,731,708) -8.29% SILICON VALLEY POWER TRANSFER 24,700,000 24,700,000 17,182,251 69.56% 16,228,990 953,261 5.87%
USE OF MONEY & PROPERTY
Interest 2,600,000 2,600,000 992,819 38.19% 881,943 110,876 12.57% Rent 9,115,722 9,298,022 6,416,946 69.01% 5,605,124 811,822 14.48% Total Use of Money & Property 11,715,722 11,898,022 7,409,765 62.28% 6,487,067 922,698 14.22% MISCELLANEOUS REVENUES 198,000 198,000 429,338 216.84% 4,219,085 (3,789,747) -89.82%
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% 3,747,419 1,679,980 44.83% Total Other Financing Sources 38,850,270 44,457,876 44,457,876 100.00% 48,949,444 (4,491,568) -9.18%
STADIUM OPERATION
Charges for Services 7,466,069 7,466,069 2,083,080 27.90% 1,743,327 339,753 19.49% Rent and Licensing 717,500 717,500 293,299 40.88% - 293,299 N/A Total Stadium Operation 8,183,569 8,183,569 2,376,379 29.04% 1,743,327 633,052 36.31% TOTAL GENERAL FUND 289,334,940$ 269,533,045$ 170,907,945$ 63.41% 175,529,002$ (4,621,057)$ -2.63% (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 February 28, 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 February 28, 2022, $30.2 million has been collected, which is up $1.3 million from the prior year level and is based on performance through the first two quarters of the fiscal year. Cash receipts were down
5.0% in the first quarter and were up 14.8% in the second quarter; overall, receipts are up 4.6% through the first two quarters of FY 2021/22. On an economic basis, local business activity was up
20.4% in the second quarter of the fiscal year, with increases in all sectors as follows: business to business up 4.5%; general retail up 35.0%; food products up 59.7%; transportation up 23.3%; and construction up 43.8%. The County pool was up 0.7% in the second quarter. 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 slightly exceed the budget.
Property Tax: Through February, 52.9% 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 information f rom the County of Santa Clara, property tax receipts are projected to end the year 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 February 28, 2022, approximately $4.1 million has been received, which is significantly higher than receipts through the same period last fiscal year of only $1.5 million. However, receipts remain 65% below the pre-COVID 19 level of $11.9 million received through February 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 at $8.0 million - $9.0 million.
Other Taxes: Includes franchise tax ($2.0 million) and documentary transfer tax ($1.4 million). The City has collected $3.4 million through February, which is 28.2% above receipts received through the same period last fiscal year. The strong growth in this category is driven by the documentary transfer tax performance, which is up 92% from the prior year. Franchise Tax collections are also up 4% from the prior year. Growth of 4.4% is needed to meet the budgeted estimate of $6.1 million. Collections are projected to exceed 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 $1.9 million, or 58.9% of the budget of $3.2 million. Receipts are tracking slightly below estimated levels through February and may end the year slightly below the budgeted estimate.
6 City of Santa Clara
Financial Status Report as of February 28, 2022
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue of $0.2 million collected in this category through February is tracking to end the year well below the budgeted estimate of $1.5 million largely due to the waiving of late fees on utility billing in response to COVID-19.
Intergovernmental: Includes motor vehicle fees, state homeowner tax relief, state mandated reimbursement and redistribution of land sale proceeds and ground leases from the Successor Agency.
Through February 28, 2022, $2.2 million has been received, which is higher than receipts through the same period last year and primarily reflects reimbursements for fire mutual aid services. 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 February, collections totaled approximately $19.2 million or 63.8% of the budget. This reflects an 8.2% decrease compared to last year’s collections through the same period of $20.9 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 February 28, 2022, $17.2 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 $7.4 million, or 62.3% of the budget. This reflects a $1.0 million increase from prior year collection levels, primarily due to higher rent collections.
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through February 28, 2022, collections of $0.4 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 2020/21.
Stadium Operation: Through February, charges for services collected through the Stadium totaled $2.4 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 36.3% 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 February 28, 2022
General Fund Expenditures
As of February 28, 2022, $170.5 million or 63.3% of the General Fund operating budget had been expended. Departmental expenditures totaled $122.2 million, or 55.7% of the budget, which is below the par level of 66.7% of the budget. 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.
Both the budget and associated expenditures have been shifted to the new fund. 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.
Adopted Budget
Amended
Budget
Actual Through
02/28/2022
Percentage
Used
Actual Through
02/28/2021
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 6,824,333$ 7,571,155$ 2,859,889$ 37.77% 2,505,516$ 354,373$ 14.14% City Council 829,205 829,205 541,994 65.36% 478,172 63,822 13.35% City Clerk 1,470,231 1,718,169 889,060 51.74% 1,256,461 (367,401) -29.24% City Manager 5,442,069 6,276,486 3,272,909 52.15% 3,369,779 (96,870) -2.87% City Attorney 3,097,380 3,119,380 1,559,818 50.00% 1,443,326 116,492 8.07% Human Resources 4,133,810 4,389,886 2,372,135 54.04% 2,055,901 316,234 15.38% Finance 17,439,442 18,273,518 10,256,485 56.13% 9,996,420 260,065 2.60% Total General Government 39,236,470 42,177,799 21,752,290 51.57% 21,105,575 646,715 3.06% PUBLIC WORKS 23,201,356 24,198,161 14,409,715 59.55% 14,849,563 (439,848) -2.96% COMMUNITY DEVELOPMENT 5,070,207 5,480,607 3,033,657 55.35% 9,139,361 (6,105,704) -66.81% PARKS AND RECREATION 20,982,990 21,433,077 11,854,397 55.31% 11,034,359 820,038 7.43%
PUBLIC SAFETY
Fire 60,581,403 49,830,070 29,859,881 59.92% 38,917,864 (9,057,983) -23.27% Police 79,870,137 65,242,662 35,496,168 54.41% 49,082,442 (13,586,274) -27.68% Total Public Safety 140,451,540 115,072,732 65,356,049 56.80% 88,000,306 (22,644,257) -25.73% LIBRARY 10,764,727 10,895,605 5,783,830 53.08% 5,611,063 172,767 3.08% DEPARTMENTAL TOTAL 239,707,290 219,257,981 122,189,938 55.73% 149,740,227 (27,550,289) -18.40%
OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 23,250,142 23,851,216 23,851,216 100.00% 1,014,286 22,836,930 2251.53% 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% 29,825,076 13,231,862 44.36% STADIUM OPERATION 7,171,786 7,218,126 5,271,118 73.03% 1,122,098 4,149,020 369.76% TOTAL GENERAL FUND 289,334,940$ 269,533,046$ 170,517,994$ 63.26% 180,687,401$ (10,169,407)$ -5.63% 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 February 28, 2022
General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances through February by department.
Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. Expenditures totaled $2.9 million, or 37.8% of the budget. These expenditures are well below the par level of 66.7%, which is due in part to the unexpended separation payout allocation of $1.8 million. Expenditures are tracking slightly above the prior year level of $2.5 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: Actual expenditures totaled approximately $1.6 million, which is below par at 50% 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 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 February, actual expenditures were tracking below budget at $0.9 million or approximately 51.7% of the budget. This reflects a decrease of 29.2% 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 February, expenditures were at 65.6% of budget, which is at par. Compared to the same period through last fiscal year, this reflects a spending increase of approximately 13.4% which is a result of higher as-needed and separation payout expenditures compared to last fiscal year.
City Manager: The actual expenditures through February totaled $3.3 million, or 52.2% of the budget, which is below par for this time of the year. Expenditures are 3% 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 February, departmental expenditures for the Planning and Housing and Community Services divisions totaled $3.0 million, or approximately 55.3%, which is below the par level of 66.7%. 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.
9 City of Santa Clara
Financial Status Report as of February 28, 2022
Finance Department: Through February, the Department’s expenditures totaled $10.3 million, or 56% 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 slightly above the prior year level.
Fire Department: Through February, actual expenditures in the General Fund totaled $30.0 million, or 60% of the budget, which is below par. These expenditures reflect a 23.3% decrease from expenditures through the same period last fiscal year. This is a result of the shifting of approximately $9.9 million of eligible expenditures to the newly established ARPA Fund.
Overtime expenditures are tracking at 109% of the budget. 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 is reimbursed for its costs. As approved by City Council on April 19, 2022, $1.8 million of wildland reimbursements was recognized and appropriated to the Fire Department ($0.9 million was added to the Department’s overtime budget, $0.2 million was added to the non-personnel budget, while $0.7 million transferred to the Vehicle Replacement Fund to cover costs for a fire engine replacement).
With that adjustment to the overtime budget, expenditures would be tracking at 87.7% of the budget.
Library Department: Through February, actual expenditures totaled $5.8 million, or 53% 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 February, actual expenditures totaled approximately $11.9 million, or 55.3% of the budget, which is below par, and is slightly higher than the prior year actuals of $11.0 million. The department has resumed most activities that were previously impacted by COVID-19 restrictions. However, some programming continues to be impacted by staff vacancies.
Police Department: Through February, actual expenditures in the General Fund totaled $35.5 million, or 54.4% of the budget, which is below par. Expenditures are significantly below the spending levels last fiscal year in the General Fund due to the ARPA funds received by the City. As mentioned above, eligible expenditures totaling $13.1 million, have been shifted to the ARPA Fund.
Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Through February, stadium expenditures totaled $5.3 million, or 73% 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.
10 City of Santa Clara
Financial Status Report as of February 28, 2022
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of February 28, 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 February 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 is reflected below. Revenues totaled approximately $28.4 million, while expenditures totaled approximately $33.5 million through the end of February. Overall, both revenues and expenditures are tracking below par.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 2/28/2022 received 2/28/2021 Prior Year Change Housing Authority Fund 261,000$ 5,461,000$ 240,167$ 4.40% 332,018$ (91,851)$ -27.66% City Affordable Housing Fund 657,000 6,657,000 2,076,854 31.20% 528,038 1,548,816 293.32% Housing Successor Fund 350,000 350,000 511,106 146.03% 727,687 (216,581) -29.76% Housing and Urban Development 1,957,103 5,011,774 1,559,417 31.12% 1,474,115 85,302 5.79% Building Development Services
Fee Fund
13,630,000 13,630,000 10,732,472 78.74% 0 10,732,472 N/A American Rescue Plan Act Fund 0 25,921,801 13,254,067 51.13% 0 13,254,067 N/A TOTAL 16,855,103$ 57,031,575$ 28,374,083$ 49.75% 3,061,858$ 25,312,225$ 826.69% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 2/28/2022 used 2/28/2021 Prior Year Change Housing Authority Fund 363,099$ 7,183,099$ 78,264$ 1.09% 90,405$ (12,141)$ -13.43% City Affordable Housing Fund 1,431,111 12,852,650 609,947 4.75% 501,641 108,306 21.59% Housing Successor Fund 915,640 11,260,001 469,055 4.17% 401,693 67,362 16.77% Housing and Urban Development 3,684,839 5,429,455 2,287,085 42.12% 1,644,464 642,621 39.08% Building Development Services
Fee Fund
12,256,059 14,757,132 6,976,549 47.28% 0 6,976,549 N/A
American Rescue Plan Act Fund 0 25,921,801 23,041,601 88.89% 0 23,041,601 N/A TOTAL 18,650,748$ 77,404,138$ 33,462,501$ 43.23% 2,638,203$ 30,824,298$ 1168.38%
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 February 28, 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 February 2022. As of February 28, 2022, these capital fund expenditures totaled $18.3 million, or 13.4% of the amended budget. As part of the adoption of the FY 2021/22 and FY 2022/23 operating budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2021. Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2020/21, approved at the December 14, 2021 Council meeting. These adjustments are reflected below.
The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program (CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.
EXPENDITURES - FISCAL YEAR 2021/22
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 2/28/2022 Used Parks & Recreation 9,973,977$ 12,169,765$ 22,143,742$ 1,263,463$ 5.71% Streets & Highways 41,610,766 38,569,145 80,179,911 11,363,748 14.17% Storm Drain 7,433,140 3,053,568 10,486,708 2,251,218 21.47% Fire 963,970 838,709 1,802,679 176,348 9.78% Library 24,374 190,107 214,481 16,546 7.71% Public Buildings 4,468,471 3,466,169 7,934,640 1,294,742 16.32% General Gov't - Other 2,464,262 8,838,081 11,302,343 1,317,969 11.66% Related Santa Clara Developer 1,177,106 1,166,044 2,343,150 655,577 27.98% Tasman East Specific
Infrastructure Improvement
Fund
23,757 4,836 28,593 2,232 7.81% TOTAL 68,139,823$ 68,296,424$ 136,436,247$ 18,341,843$ 13.44%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
12 City of Santa Clara
Financial Status Report as of February 28, 2022
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of February 28, 2022. Overall, revenues and expenditures are tracking below budgeted levels with revenues tracking at 60.9% of the budget and expenditures tracking at 62.4% 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. Higher expenditures in the Water Recycling Fund reflect increased costs and usage in the resource and production category. Payments are made on a quarterly basis, with one remaining payment for this fiscal year.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 2/28/2022 received 2/28/2021 Prior Year Change Electric Utility Fund 555,810,147$ 555,810,147$ 335,400,522$ 60.34% 305,933,748$ 29,466,774$ 9.63% Water Utility Fund 49,489,630 49,489,630 31,856,314 64.37% 32,159,202 (302,888) -0.94% Sewer Utility Fund 58,344,697 58,344,697 35,962,100 61.64% 26,112,400 9,849,700 37.72% Cemetery Fund 600,000 600,000 520,278 86.71% 332,187 188,091 56.62% Solid Waste Utility Fund 33,610,000 33,764,000 20,859,932 61.78% 15,507,676 5,352,256 34.51% Water Recycling Fund 5,703,831 5,703,831 3,970,451 69.61% 3,746,296 224,155 5.98% TOTAL REVENUE 703,558,305$ 703,712,305$ 428,569,597$ 60.90% 383,791,509$ 44,778,088$ 11.67% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 2/28/2022 Used 2/28/2021 Prior Year Change Electric Utility Fund 511,251,732$ 515,507,550$ 326,257,657$ 63.29% 262,396,262$ 63,861,395$ 24.34% Water Utility Fund 47,197,617 47,580,260 26,144,724 54.95% 27,885,928 (1,741,204) -6.24% Sewer Utility Fund 30,565,333 30,707,268 20,980,858 68.33% 20,064,078 916,780 4.57% Cemetery Fund 1,480,235 1,480,235 929,353 62.78% 855,770 73,583 8.60% Solid Waste Utility Fund 33,323,675 37,135,208 19,196,704 51.69% 15,350,882 3,845,822 25.05% Water Recycling Fund 5,709,582 5,709,582 4,532,007 79.38% 3,671,609 860,398 23.43% TOTAL - Operating
Appropriations
629,528,174$ 638,120,103$ 398,041,303$ 62.38% 330,224,529$ 67,816,774$ 20.54% 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 February 28, 2022
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 February 2022 totaled approximately $68.5 million, or 26% of the amended budget.
Expenditures in the Sewer Utility Capital Fund were significantly higher as a result of the Regional Wastewater Facility project, which is managed alongside the City of San José. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2021/22 and FY 2022/23 budget adoption process for those projects that have not yet been completed.
Adjustments to the capital carryover amounts based on actual year-end expenditures were included as part of the Budgetary Year-End Report for FY 2020/21, approved at the December 14, 2021 Council meeting. These adjustments are reflected below.
Prior Year
Actual Actual
Fund Current Year Prior Year Total Amended Through Percentage Through Description Appropriation Carryforward Budget 2/28/2022 Used 2/28/2021 Electric Utility Fund 81,042,278$ 82,265,773$ 163,308,051$ 26,450,475$ 16.20% 28,349,348$ Street Lighting (1) 4,054 5,918,610 5,922,664 81,811 1.38% 13,080 Water Utility Fund 10,900,672 2,700,000 13,600,672 4,463,283 32.82% 5,089,414 Sewer Utility Fund 50,901,194 23,050,119 73,951,313 34,788,081 47.04% 8,547,399 Cemetery Fund 60,044 248,365 308,409 20,406 6.62% - Solid Waste Utility Fund 670,377 174,826 845,203 692,541 81.94% 192,632 Water Recycling Fund 50,000 - 50,000 - 0.00% 2,063 Convention Center
Capital Fund
1,724,000 3,642,265 5,366,265 2,005,784 37.38% -
TOTAL - CIP
Appropriations
145,352,619$ 117,999,958$ 263,352,577$ 68,502,381$ 26.01% 42,193,936$ 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 February 28, 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.
15 City of Santa Clara
Financial Status Report as of February 28, 2022
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 53,615,880$
Capital Projects Reserve 8,151,313
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 83,790,077$ 157,814,531$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
February 28, 2022
Note: The Capital Pro jects Reserve includes funding of $ 3.2 million set aside for projects programmed in FY 2022/23 through FY 2024/25 in t he prior CIP.
16 City of Santa Clara
Financial Status Report as of February 28, 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 February 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 February 2022 and for fiscal year 2021/22 are shown in the table below.
Department Feb-22
Fiscal Year
2021/22
Year To Date Designated Use
City Manager's Office 25$ 140$ Help Your Neighbor Parks & Recreation - 12,800 Case Management Parks & Recreation - 1,675 Wade Brummal Parks & Recreation 20 70 Roberta Jones Jr. Theater Police - 75,000 PD Team 200
Police 2,500 2,500 PD Training Simunition Gear TOTALS 2,545$ 92,185$