_____________________________________________________________________
MONTHLY FINANCIAL STATUS REPORT
August 2022
1 City of Santa Clara
Financial Status Report as of August 31, 2022
This report summarizes the City’s fin ancial performance for the month ended August 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 incl udes multiple programs, services, and activities for the residents and businesses of the City. The adopted budget for operating revenues and expenditures for fiscal year 2022/23 was $272.4 million. The amended budget for revenues and expenditures was adjusted to $279.3 million to reflect various budget amendments approved by the City Council through August 2022.
While it is very early in the fiscal year and limited data is available, General Fund revenues are currently tracking within e stimated levels. Through August, expenditures are tracking b elow budget and this trend is expected to continue as departments continue to control expenditures through var ious cost control measures.
Economic indicators are mixed, and there is a tremendous amount of uncertainty . According to the UCLA September 2022 Forecast, the labor market remains strong, consumers have continued to spend, supply chain constraints have eased, commodity prices - particularly crude oil prices - have started to decline, domestic manufacturing along with government defense purchases and investments associated with the shift to renewable energy sources are expected to increase. On the flip side, core inflation remains elevated, the Fed is expected to continue to increase interest rate s that may constrain consumer spending, consumers are more pessimistic, housing markets are starting to turn with the increases in mortgage rates, U.S. exports have become more expensive for consumers in other countries with the appreciation of the dollar against other currencies, and there is labor unrest with t he decline in real wages and a low unemployment rate. While the UCLA Forecast does not forecast a recession at this time, it did point to an increased risk of a recession over the next 12 months 1.
Companies are anticipating a slowdown. A recent survey of 400 leaders of large U.S. companies by the KPMG consulting firm fo und that 91% of these CEOs are predicting a recession in the next 12 months with only 34% believing the recession will be mild and short.2 On a national level, the unemployment rate decreased slightly from 3.7% in August 2022 to 3.5% in September 2022. This rate was well below the record setting high of 14.7% in April 2020, and equal to the pre-pandemic unemployment rate of 3.5% . In September, the number of unemployed persons fell to
5.8 million from 6.0 million in August. This unemployment figure has dropped closer to the pre- pandemic level of 5.7 million.3
1 UCLA Anderson Forecast, September 2022
2 CEOs are preparing for a recession, and they don't think it will be short | CNN Business 3 https://www.bls.gov/news.release/pdf/empsit.pdf
2 City of Santa Clara
Financial Status Report as of August 31, 2022
In the second quarter 2022 third estimate, the Gross Domestic Product ( GDP) decreased by 0.6%, following a GDP decreased by 1.6 % in the first quarter. The estimated decrease in the first quarter reflected increasing inflation, ongoing supply -chain issues as well as rising interest rates. The real GDP for the second quarter 2022 is 3.5% above the level experienced in the fourth quarter of 2019.4
4 https://www.bea.gov/sites/default/files/2022-09/tech2q22_3rd.pdf
3 City of Santa Clara
Financial Status Report as of August 31, 2022
The UCLA Anderson Forecast
projects slow year-over-year GDP
growth over the next few years : 1.5%
in 2022, 0.3% in 2023, and 2.0% in
2024. By 2024, the UCLA Forecast
expects the economy to rebound and
for growth to accelerate slightly
above long-term trends.
At the state level, the September 2022 UCLA Forecast for California points to continued economic growth with solid employment gains in the leisure and hospitality, health care and social services , technology, and construction industries as well as increa ses in demand in the defen se and technology industries. However, this forecast points to headwinds that represent real near-term risks to the economy. “As a consequence of slowing of growth in the U .S. our forecast is now a bit weaker than three months ago. F urther risks to the forecast are the course of the pandemic and domestic migration on the downside and increased international immigration and accelerated onshoring of technical manufacturing on the upside” wrote Jerry Nickelsburg, Director of UCLA Ande rson Forecast.5 The State and local employment levels remain strong. After the State’s largest increase in the unemployment rate in April 2020, the California unemployment rate rose slightly from 3.9% in July to
4.1% in August. This rate is slightly lower compared to the 4.2% rate in June 2022. California has now regained 98.3% of the 2.7 million jobs lost due to COVID-19 in March and April 2020.7 The unadjusted unemployment rate in the San Jos é-Sunnyvale-Santa Cla ra Metropolitan Statistical Area (MSA) was 2.4% in August 2022, up from a revised 2.2% in July 2022, but below the August 2021 level of 4.7% and the February 2020 level of 2.6%. Between August 2021 and August 2022, employment in this region increase by 52,200 jobs, or 4.6%.8 The largest increases were in professional and business ser vices (up 14,200 jobs), leisure and hospitality (up 14,000 jobs), and private educational and health services (up 7,800 jobs).
Staff will continue to closely monitor the economic environment and the City’s financial performance and provide updates through the Monthly Financial R eports.
5 UCLA Anderson Forecast, California After Two Quarters of Negative GDP and CalExodus?, September 2022 7 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-August-2022/ 8 https://www.labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of August 31, 2022
General Fund Revenues
As of August 31, 2022, $10.5 million or 4.2% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $40.7 million have occurred as budgeted.
This very low collection level through August is largely due to the timing of payments. In some categories, the revenues received through August account for activity that occurred in FY 2021/22 and those revenues are accrued back to that year. In other cases, such as property tax, most payments are scheduled to occur later in the fiscal ye ar.
Adopted Budget
Amended
Budget
Actual Through
8/31/2022
Percentage
Received
Actual Through
8/31/2021
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,173,000$ 60,173,000$ -$ 0.00% -$ -$ N/A Property Tax 75,261,000 75,261,000 137,935 0.18% 46,714 91,221 195.28% Transient Occupancy Tax 12,600,000 12,600,000 992,894 7.88% 459,117 533,777 116.26% Other Taxes 6,260,000 6,260,000 215,174 3.44% 212,787 2,387 1.12% Total Taxes 154,294,000 154,294,000 1,346,003 0.87% 718,618 627,385 87.30%
LICENSES & PERMITS
Business Licenses 900,000 900,000 146,976 16.33% 159,930 (12,954) -8.10% Fire Operation Permits 2,100,000 2,100,000 301,265 14.35% 394,129 (92,864) -23.56% Building Permits - - - N/A 191,067 (191,067) -100.00% Electric Permits - - - N/A 45,302 (45,302) -100.00% Plumbing Permits - - - N/A 28,957 (28,957) -100.00% Mechanical Permits - - - N/A 35,417 (35,417) -100.00% Miscellaneous Permits 72,000 72,000 30,455 42.30% 12,983 17,472 134.58% Total Licenses & Permits 3,072,000 3,072,000 478,696 15.58% 867,785 (389,089) -44.84% FINES & PENALTIES 1,465,000 1,615,000 28,881 1.79% 24,131 4,750 19.68% INTERGOVERNMENTAL 310,000 310,000 24,666 7.96% 1,770 22,896 1293.56% CHARGES FOR SERVICES 31,258,098 31,258,098 4,155,409 13.29% 4,332,894 (177,486) -4.10% SILICON VALLEY POWER TRANSFER 26,170,000 26,170,000 2,386,990 9.12% 4,295,563 (1,908,573) -44.43%
USE OF MONEY & PROPERTY
Interest 2,532,000 2,532,000 (153,222) -6.05% (567,735) 414,513 -73.01% Rent 10,584,266 10,584,266 1,609,231 15.20% 1,774,697 (165,466) -9.32% Total Use of Money & Property 13,116,266 13,116,266 1,456,009 11.10% 1,206,962 249,047 20.63% MISCELLANEOUS REVENUES 150,000 150,000 88,922 59.28% 52,734 36,188 68.62%
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% 1,454,000 - 0.00% Operating Transfer In - Reserves 25,812,244 32,632,195 32,632,195 100.00% 32,390,871 241,324 0.75% Operating Transfer In - Fund Balances(2) 4,484,726 4,484,726 4,484,726 100.00% 4,817,658 (332,933) -6.91% Operating Transfer In - Miscellaneous 2,127,374 2,127,374 2,127,374 100.00% 5,005,399 (2,878,025) -57.50% Total Other Financing Sources 33,878,344 40,698,295 40,698,295 100.00% 43,667,928 (2,969,634) -6.80%
STADIUM OPERATION
Charges for Services 7,889,147 7,889,147 91,272 1.16% 137,323 (46,051) -33.53% Rent and Licensing 752,500 752,500 483,361 64.23% - 483,361 N/A Total Stadium Operation 8,641,647 8,641,647 574,633 6.65% 137,323 437,310 318.45% TOTAL GENERAL FUND 272,355,355$ 279,325,306$ 51,238,503$ 18.34% 55,305,709$ (4,067,206)$ -7.35% (1) The Operating Transfer In - Fund Balances includes the carryover encumbrances of open purchase orders as of June 30, 2022 and mid year budget amendment from reserves.
Function
CITY OF SANTA CLARA
GENERAL FUND
REVENUES OVERVIEW AND COMPARISON BY TYPE
FISCAL YEAR 2022/23 PY REVENUE COMPARISON
5 City of Santa Clara
Financial Status Report as of August 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 August 31, 2022, no sales tax has been collected. Given the timing of payments, the sales tax payments received through August accounted for activity in the prior fiscal year and those funds were accrued to last year.
Property Tax: Through August, 0.2% 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 y ear above the Adopted Budget estimate of $75.3 million.
Transient Occupancy Tax (TOT): TOT is calculated as a percentage of City hotel/motel room charges. The City’s TOT rate is 11.5%. Through August 31, 2022, approximately $1.0 million has been received, which is significantly higher t han receipts through the same period last fiscal year of $0.5 million. As businesses continue to recover from the COVID-19 impacts, it is anticipated that TOT will increase compared to last fiscal year. While it is early in the fiscal year, TOT receipts are expected to meet or exceed the budgeted estimate of $12.6 million based on current collection trends.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $0.2 million through August, which is on par with prior year collection levels. Receipts through August reflect higher collections in the franchise tax category that is offset by lower receipts in the documentary transfer tax categories.
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 Service s Fund, which will be reflected in the Special Revenue section of this report. Licenses and permits revenue collections are tracking slightly below par with receipts totaling $0.5 million, or 15.6% of the budget of $3.1 million.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue of approximately $29,000 collected in this category through August is tracking to end the year well below the budgeted esti mate of $1.6 million largely due to the waiving of late fees in response to COVID-19. The City is 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 motor vehicle fees, state homeowner tax relief, state mandated reimbursement and redistribution of land sale proceeds and ground leases from the Successor Agency.
Through August 31, 2022, $25,000 has been received, which is well above receipts through the same period last year. This is a result of a reimbursement received for the Police Department for POST training courses.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through
6 City of Santa Clara
Financial Status Report as of August 31, 2022
August 31, 2022, collections totaled approximately $4.2 million or 13.3% of the budget. This reflects a 4% decrease compared to last year’s collections through the same period of $4.3 million. This decrease is a result of timing of differences in the booking of interdepartmental charges directly related to the cost allocation plan. These charges have not yet been reflected this fiscal year. This is partially offset by higher collections for engineering fees and Fire CUPA fees.
Silicon Valley Power Transfer: In accordance with the City’s charter, Silicon Val ley Power pays 5.0% of gross revenues to the General Fund. As of August 31, 2022, $2.4 million has been received.
Transfers throughout the year are based on the budgeted estimate and will be trued up at the end of the fiscal year based on actual performance.
Use of Money & Property: Includes realized investment income and rental income. Interest income and rent revenue collections totaled $1.6 million, or 11.1% of the budget. The negative amount under the interest category reflects an accrual to the prior year.
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through August 31, 2022, collections of $89,000 are higher than collections through the same period last fiscal year by approximately 68.6%. This increase is primarily attributable to the level of donations received com pared to last fiscal year.
Stadium Operation: As of August 31, 2022, charges for services collected through the Stadium totaled $0.6 million, which is below par for this time of year. However, this is 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 August 31, 2022
General Fund Expenditures
As of August 31, 2022, $ 50.5 million or 18.1% of the Gener al Fund operating budget had been expended. This is significantly lower than last fiscal year due to lower transfers to other funds; last year included a one-time transfer of the Building Inspection Reserve to the new Build ing D evelopment Services Fund as well as higher transfers to Capital Funds. Overall, expenditures in the General Fund are within budgeted levels through August. Departmental expenditures totaled $37.5 million, or 14.4 % of the budget, w hich is below the par level of 16.7% of the budget . Several cost-control measures that were implemented in FY 2019/ 20 remain in place to generate expenditure savings. 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
8/31/2022
Percentage
Used
Actual Through
8/31/2021
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 7,514,334$ 7,656,881$ 681,834$ 8.90% 552,144$ 129,690$ 23.49% City Council 861,105 861,105 82,105 9.53% 139,207 (57,102) -41.02% City Clerk 2,076,112 2,080,362 158,246 7.61% 209,620 (51,374) -24.51% City Manager 6,085,321 6,277,494 700,340 11.16% 824,047 (123,707) -15.01% City Attorney 3,202,735 3,690,974 596,938 16.17% 435,670 161,268 37.02% Human Resources 4,508,710 4,692,801 522,687 11.14% 570,591 (47,904) -8.40% Finance 19,045,131 19,836,493 2,503,339 12.62% 2,606,321 (102,982) -3.95% Total General Government 43,293,448 45,096,110 5,245,489 11.63% 5,337,600 (92,111) -1.73% PUBLIC WORKS 24,021,840 24,978,624 3,296,895 13.20% 3,911,605 (614,710) -15.72% COMMUNITY DEVELOPMENT 5,398,007 5,590,765 679,554 12.15% 886,012 (206,458) -23.30% PARKS AND RECREATION 21,695,302 22,082,661 3,170,571 14.36% 2,988,349 182,222 6.10%
PUBLIC SAFETY
Fire 62,298,852 65,454,697 10,895,343 16.65% 10,537,598 357,745 3.39% Police 84,615,023 84,924,035 12,636,356 14.88% 12,639,429 (3,073) -0.02% Total Public Safety 146,913,875 150,378,732 23,531,699 15.65% 23,177,027 354,672 1.53% LIBRARY 11,889,451 12,039,461 1,554,011 12.91% 1,391,424 162,587 11.68% DEPARTMENTAL TOTAL 253,211,923 260,166,353 37,478,219 14.41% 37,692,017 (213,798) -0.57%
OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 38,809 38,809 38,809 100.00% 23,250,142 (23,211,333) -99.83% Operating Transfer Out - Debt Services 1,402,275 1,402,275 1,402,275 100.00% 2,501,439 (1,099,164) -43.94% Operating Transfer Out - Maintenance Dtrct 842,700 842,700 842,700 100.00% 771,349 71,351 9.25% Operating Transfer Out - Cemetery 870,000 870,000 870,000 100.00% 850,000 20,000 2.35% Operating Transfer Out - CIP 8,625,501 8,625,501 8,625,501 100.00% 11,773,925 (3,148,424) -26.74% Operating Transfer Out - Reserves - - - N/A 3,309,009 (3,309,009) -100.00% Total Other Financing Uses 11,779,285 11,779,285 11,779,285 100.00% 42,455,864 (30,676,579) -72.26% STADIUM OPERATION 7,364,147 7,379,668 1,232,445 16.70% 956,189 276,256 28.89% TOTAL GENERAL FUND 272,355,355$ 279,325,306$ 50,489,949$ 18.08% 81,104,070$ (30,614,121)$ -37.75% Function
CITY OF SANTA CLARA
GENERAL FUND
EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2022/23 PY EXPENDITURES COMPARISON
8 City of Santa Clara
Financial Status Report as of August 31, 2022
General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances by program.
Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. As of August 31, 2022, expenditures totaled $0.7 million, or 8.9% of the budget. These expenditures are below the par level of 16.7% but are higher than the prior year levels, primarily as a result of higher expenditures in the advertising and community promotion as well as salaries.
City Attorney: As of August 31, 2022, actual expenditures totaled approximately $0.6 million, which is within expected levels at 16.2% of the budget. Spending is 37% above the total expenditures through the same time last fiscal year due to higher contractual legal s ervices costs.
City Clerk: Through August, actual expenditures were tracking below budget at $0.2 million or approximately 7.6% of the budget. T his reflects a decrease of 24.5% over last year’s spending through the same period. This is a result of the timing of the internal service allocation charges, which are not all yet reflected in the August data, as well as lower as-needed spending.
City Council: Through August, expenditures were at 9.5% of budget, which is below par. Compared to the same period through last fiscal year, this reflects a spending decrease of approximately 41%, which is primarily the result of the timing of internal service fund allocation charges. Additionally, lower spending is a result of savings due to vacancies within the department .
City Manager: The actual expenditures through August totaled $0.7 million, or 11.2% of the budget, which is below par for this time of the year. Expenditures are 15% lower compared with the spending level through the same period last fiscal year. Similar to other departments, t his is a result of the timing of the internal service allocation charges, which are n ot all yet reflected in the August data, as well as lower advertising spending.
Community Development Department: This department consists of three divisions: Planning, Building, and Housing and Community Services. The Building division of this department is reflected in the Building Development Services Fund, which falls under the special revenue section of this report.
Through August, departmental expenditures for the Planning and Housing and Community Services divisions totaled $0.7 million, or 12.2%, which is below the par level of 16.7%. Expenditures were also well below the spending through the same period last fiscal year due to the timing of the internal service allocation charges, which are not all yet reflected in the August data, as well as lower contractual services spending.
Finance Department: Through August, the Department’s expenditures totaled $2.5 million, or 12.6% of the budget, which is below par. This expenditure level was approximately 4% lower than expenditure levels through the same period last year. Similar to other departments, the timing of when the internal service fund allocations ch arges being recorded is a factor in the decrease.
9 City of Santa Clara
Financial Status Report as of August 31, 2022
Fire Department: As of August 31, 2022, actual expenditures totaled $10.9 million, or 16.7% of the budget, which is at par. These expenditures reflect a 3.4% increase from expenditures through the same period last fiscal year. While salaries and benefits spending is higher than last fiscal year, this increase is partially of fset by the timing of the internal service fund allocation charges, which are not fully captured through August data. Overtime expenditures are tracking at 29.1% of the budget, 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 cost s.
Library Department: Through August, actual expenditures totaled $1.6 million, or 12.9% of the budget, which is below par, but 11.7% higher than expenditure levels last fiscal year. This is a result of the resuming of full operations which began earlier this calendar year.
Parks and Recreation Department: Through August, actual expenditures totaled approximately $3.2 million, or 14.4% of the budget, which is slightly below par, but above the prior year actuals of $3.0 million. This is due to the department resuming activities that were previously impacted by COVID-19 restrictions.
Police Department: Expenditures as of August 2022 are tracking at expected levels at $12.6 million, or
14.8% of the budget; this is consistent with prior year spending.
Stadium Operation: Stadium operating expenditures are inc urred first and billed on a reimbursement basis creating a timing difference in revenue recognitio n. Stadium expenditures totaled $1.2 million through August and are tracking below budgeted levels. However, this is 29% 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 August 31, 2022
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of August 31, 2022. The amended budget reflects carryover encumbrances from fiscal year 2021/22 and budget amendments approved by the City Council through August 2022. Effective July 1, 2021, all Building Division revenue s and expenditures are now budgeted and accounted for in the Building Development Services Fund, which is included in the table bel ow. Revenues totaled approximately $3.5 million, while expenditures totaled appro ximately $4.3 million through the end of August. Overall, both revenues and expenditures are tracking above par. In the Housing Successor Fund, th e expenditures are currently showing as overbudget as a result of a special disbursements for a housing loan, which was budgeted in FY 2021/22. An adjustment to carryover this budget will be brought forward as part of the Budgetary Year-End Report for FY 2021/22, expected to go t o Council in December 2022.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 8/31/2022 received 8/31/2021 Prior Year Change Housing Authority Fund 280,000$ 280,000$ 17,897$ 6.39% 14,011$ 3,886$ 27.74% City Affordable Housing Fund 682,000 682,000 75,663 11.09% 31,694 43,969 138.73% Housing Successor Fund 350,000 350,000 136,440 38.98% 66,494 69,946 105.19% Housing and Urban Development 1,810,000 1,810,000 78,408 4.33% 87,192 (8,784) -10.07% Building Development Services
Fee Fund
14,112,000 14,112,000 3,208,522 22.74% 2,155,647 1,052,875 48.84% TOTAL 17,234,000$ 17,234,000$ 3,516,930$ 20.41% 2,355,038$ 1,161,892$ 49.34% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 8/31/2022 used 8/31/2021 Prior Year Change Housing Authority Fund 380,363$ 478,326$ 39,308$ 8.22% 31,440$ 7,868$ 25.03% City Affordable Housing Fund 1,685,731 2,794,313 166,835 5.97% 176,890 (10,055) -5.68% Housing Successor Fund 1,242,599 1,374,178 1,755,713 127.76% 128,342 1,627,371 1268.00% Housing and Urban Development 2,379,814 3,128,522 389,875 12.46% 888,910 (499,035) -56.14% Building Development Services
Fee Fund
13,360,809 15,008,207 1,904,806 12.69% 1,482,855 421,951 28.46% TOTAL 19,049,316$ 22,783,546$ 4,256,537$ 18.68% 2,708,437$ 1,548,100$ 57.16%
PRIOR YEAR EXPENDITURE COMPARISON
CITY OF SANTA CLARA
SPECIAL REVENUE FUNDS
REVENUE AND EXPENDITURE - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2022/23 PRIOR YEAR REVENUE COMPARISON EXPENDITURES - FISCAL YEAR 2022/23
11 City of Santa Clara
Financial Status Report as of August 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 encumbrance balances in Governmental Capital Improvement Funds, and budget amendments approved through August 2022. As of August 31, 2022, these capital fund expenditures totaled $6.0 million, or 4.5% of the amended budget. As part of the adoption of the FY 2022/23 and FY 2023/24 capital improvement program budget, some capital funds were carried over for projects that were not an ticipated to be completed by June 30, 2022 .
Necessary additional adjustments to the capital carryover amounts will be brought forward as part of the Budgetary Year-End Report for FY 2021/22, expected to go to Council in Dec ember 2022.
The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program (CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.
EXPENDITURES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 8/31/2022 Used Parks & Recreation 4,667,991$ 22,437,801$ 27,105,792$ 511,498$ 1.89% Streets & Highways 15,163,050 59,970,079 75,133,129 3,774,921 5.02% Storm Drain 963,432 6,657,501 7,620,933 863,170 11.33% Fire 661,766 1,768,679 2,430,445 43,000 1.77% Library 281,831 297,590 579,421 6,500 1.12% Public Buildings 1,189,532 4,061,069 5,250,601 125,265 2.39% General Gov't - Other 1,950,000 7,453,526 9,403,526 423,148 4.50% Related Santa Clara Developer 2,902,465 598,382 3,500,847 259,081 7.40% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 5,718 8.26% Tasman East Specific
Infrastructure Improvement
Fund
2,876,218 - 2,876,218 2,192 0.08% TOTAL 30,725,490$ 103,244,627$ 133,970,117$ 6,014,493$ 4.49%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
12 City of Santa Clara
Financial Status Report as of August 31, 2022
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of August 31, 2022. Overall, revenues and expenditures are tracking below budgeted levels.
While revenues are tracking above last fiscal year levels, expenditures are tracking lower than prior year levels, primarily in the Water Utility and Solid Waste Funds. The decrease in expenditures is primarily due to lower expenditures in the resources and the garbage, disposal, and recycling categories, respectively.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 8/31/2022 received 8/31/2021 Prior Year Change Electric Utility Fund 615,818,445$ 615,818,445$ 64,457,371$ 10.47% 53,823,384$ 10,633,987$ 19.76% Water Utility Fund 48,358,520 48,358,520 8,128,611 16.81% 6,069,678 2,058,933 33.92% Sewer Utility Fund 40,459,345 40,459,345 4,865,778 12.03% 4,095,652 770,126 18.80% Cemetery Fund 600,000 600,000 134,321 22.39% 132,408 1,913 1.44% Solid Waste Utility Fund 37,245,092 37,245,092 4,076,095 10.94% 3,785,465 290,630 7.68% Water Recycling Fund 5,708,446 5,708,446 917,623 16.07% 1,097,574 (179,951) -16.40% TOTAL REVENUE 748,189,848$ 748,189,848$ 82,579,799$ 11.04% 69,004,161$ 13,575,638$ 19.67% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 8/31/2022 Used 8/31/2021 Prior Year Change Electric Utility Fund 603,681,580$ 606,315,831$ 69,650,517$ 11.49% 77,898,641$ (8,248,124)$ -10.59% Water Utility Fund 46,797,065 48,412,861 3,244,601 6.70% 5,119,682 (1,875,081) -36.62% Sewer Utility Fund 30,825,023 31,046,671 6,458,697 20.80% 6,576,816 (118,119) -1.80% Cemetery Fund 1,539,796 1,539,796 192,373 12.49% 237,326 (44,953) -18.94% Solid Waste Utility Fund 36,626,118 40,159,684 3,530,642 8.79% 4,517,524 (986,882) -21.85% Water Recycling Fund 5,729,413 5,729,413 1,431,021 24.98% 1,251,718 179,303 14.32% TOTAL - Operating
Appropriations
725,198,995$ 733,204,256$ 84,507,851$ 11.53% 95,601,707$ (11,093,856)$ -11.60%
CITY OF SANTA CLARA
ENTERPRISE OPERATING FUNDS
REVENUES AND EXPENSES - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2022/23 PRIOR YEAR REVENUE COMPARISON PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2022/23
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.
13 City of Santa Clara
Financial Status Report as of August 31, 2022
A summary of expenses in the Enterprise Capital Improvement Funds is detailed in the table below.
Actuals through August 2022 totaled approximately $11.3 million, or 4% of the amended budget.
Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2022/23 and FY 2023/24 budget adoption process for those projects that have not yet been completed. Adjustments to the capital carryover amounts based on actual year-end expenditures will be brought forward in December 2022, as part of the FY 2021/22 year-end reconciliation process.
Prior Year
Actual Actual
Fund Current Year Prior Year Total Amended Through Percentage Through Description Appropriation Carryforward Budget 8/31/2022 Used 8/31/2021 Electric Utility Fund 96,088,981$ 118,664,746$ 214,753,727$ 8,412,359$ 3.92% 1,700,186$ Street Lighting (1)
71,455 4,820,273 4,891,728 21,635 0.44% 43,022 Water Utility Fund 6,665,000 1,368,212 8,033,212 336,133 4.18% 441,284 Sewer Utility Fund 19,815,641 25,615,224 45,430,865 2,461,347 5.42% 5,078,831 Cemetery Fund 9,225 278,397 287,622 - - 1,401 Solid Waste Utility Fund 743,000 148,520 891,520 42,107 4.72% 112,790 Water Recycling Fund 50,000 - 50,000 - - - Convention Center
Capital Fund
2,622,854 2,622,854 - - 207,237
TOTAL - CIP
Appropriations
123,443,301$ 153,518,227$ 276,961,528$ 11,273,581$ 4.07% 7,584,751$ EXPENSES - FISCAL YEAR 2022/23
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 August 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 2022/23, 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 Rate Stabilization Reserve and Operations and Maintenance Reser ve assure sufficient operating cash is available to cover day-to-day expenses, address unforeseen cost increases or revenue shortfalls, and 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 August 31, 2022
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 39,701,399$
Capital Projects Reserve 5,364,822
Land Sale Reserve 10,400,907
Technology Fee Reserve 2,353,804
Electric Rate Stabilization Fund Reserve 44,898,011$
Electric Operations and Maintenance Reserve 112,838,357 Replacement & Improvement 303,090$
TOTALS 57,820,932$ 157,736,368$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
August 31, 2022
16 City of Santa Clara
Financial Status Report as of August 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 August 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
Parks and Recreation Facilities General Fund Loan 5,539,540 TOTALS 5,539,540$
Donations to the City of Santa Clara
Donations received by department during the month of August 2022 and for fiscal year 2022/23 are shown in the table below.
Department Aug-22
Fiscal Year
2022/23
Year To Date Designated Use
City Manager's Office 25$ 25$ Help Your Neighbor Parks & Recreation 99 99 Case Management Parks & Recreation 568 594 Roberta Jones Jr. Theatre
Parks & Recreation 450 9,825 Wade Brummal
TOTALS 1,142$ 10,543$