_____________________________________________________________________
MONTHLY FINANCIAL STATUS REPORT
July 2022
1 City of Santa Clara
Financial Status Report as of July 31, 2022
This report summarizes the City’s fin ancial performance for the month ended July 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 carryover encumbrances from fiscal year 2021/22 and various budget amendments approved by the City Council through July 2022.
While it is very early in the fiscal year and limited data is available, General Fund revenues are currently tracking with estimated levels. Through July, expenditures are tracking slightly below 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 ag ainst 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 increased slightly from 3.5% in July 2022 to 3.7% in August 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 August, the number of unemployed persons increased by
0.3 million, totaling 6.0 million. The labor market remains relatively unchanged. 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/archives/empsit_09022022.pdf
2 City of Santa Clara
Financial Status Report as of July 31, 2022
In the second quarter 2022 second estimate, the Gross Domestic Product ( GDP) decreased by 0.9%, following a GDP decrease of 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 2.5% above the level experienced in the fourth quarter of 2019.4
4 https://www.bea.gov/sites/default/files/2022-07/tech2q22_adv.pdf
3 City of Santa Clara
Financial Status Report as of July 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. Further 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 An derson 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 dropped to 3.9% in July 2022. This rate is the lowest unemployment rate on record since 1976. This rate is lower compared to the 4.2% rate in June 2022. With the decrease in the unemployment rate between February and July, California has now regained nearly 97.3% 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 services (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 Report s.
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-july-2022/ 5 https://www.labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf 8 https://www.labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of July 31, 2022
General Fund Revenues
As of July 31, 2022, $4.2 million or 1.8% 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 July is largely due to the timing of payments. In some categories, the revenues received in July 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 t o occur later in the fiscal year.
Adopted Budget
Amended
Budget
Actual Through
7/31/2022
Percentage
Received
Actual Through
7/31/2021
$
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 - 0.00% - - N/A Transient Occupancy Tax 12,600,000 12,600,000 2,251,677 17.87% (117,876) 2,369,553 -2010.21% Other Taxes 6,260,000 6,260,000 61,746 0.99% 58,236 3,510 6.03% Total Taxes 154,294,000 154,294,000 2,313,423 1.50% (59,640) 2,373,063 -3978.98%
LICENSES & PERMITS
Business Licenses 900,000 900,000 71,934 7.99% 85,687 (13,753) -16.05% Fire Operation Permits 2,100,000 2,100,000 140,341 6.68% 175,030 (34,689) -19.82% Building Permits - - - N/A 81,608 (81,608) -100.00% Electric Permits - - - N/A 12,274 (12,274) -100.00% Plumbing Permits - - - N/A 9,145 (9,145) -100.00% Mechanical Permits - - - N/A 7,910 (7,910) -100.00% Miscellaneous Permits 72,000 72,000 - 0.00% 11,693 (11,693) -100.00% Total Licenses & Permits 3,072,000 3,072,000 212,275 6.91% 383,347 (171,072) -44.63% FINES & PENALTIES 1,465,000 1,615,000 18,360 1.14% 2,236 16,124 721.11% INTERGOVERNMENTAL 310,000 310,000 670 0.22% - 670 N/A CHARGES FOR SERVICES 31,258,098 31,258,098 1,252,044 4.01% 2,049,850 (797,806) -38.92% SILICON VALLEY POWER TRANSFER 26,170,000 26,170,000 - 0.00% 2,147,782 (2,147,782) -100.00%
USE OF MONEY & PROPERTY
Interest 2,532,000 2,532,000 (710,264) -28.05% (838,071) 127,807 -15.25% Rent 10,584,266 10,584,266 712,759 6.73% 1,046,125 (333,366) -31.87% Total Use of Money & Property 13,116,266 13,116,266 2,495 0.02% 208,054 (205,559) -98.80% MISCELLANEOUS REVENUES 150,000 150,000 45,901 30.60% 45,212 689 1.52%
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 (84,638) -1.07% (14,011) (70,627) 504.08% Rent and Licensing 752,500 752,500 460,000 61.13% - 460,000 N/A Total Stadium Operation 8,641,647 8,641,647 375,362 4.34% (14,011) 389,373 -2779.05% TOTAL GENERAL FUND 272,355,355$ 279,325,306$ 44,918,825$ 16.08% 48,430,758$ (3,511,933)$ -7.25% (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 July 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 July 31, 2022, no sales tax has been collected . Given the timing of payments, the sales tax payments received in July accounted for activity in the prior fiscal year and those funds were accrued to last year.
Property Tax: No property tax receipts were received in July 2022. The majority of property tax revenue is collected in February and April each year. Based on initial information from the County of Santa Clara, property tax receipts are projected to end the year 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 July 31, 2022, $2.3 million was booked in this category; however, these receipts were for activity in FY 2021/22 and will be accrued to FY 2021/22 as reflected in the August 2022 figures.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected under $0.1 million through July, which is approximately 6% higher than prior year collection levels. Receipts through July reflect franchise tax collections. No documentary transfer tax revenue is reflected th rough July as the receipts received in July were accrued to the prior fiscal year.
Licenses & Permits: Includes business licenses, fire operation permits, and miscellaneous permit s and fees. Effective FY 2021/22, building, electric, plumbing and mechanical permits have all been budgeted in the new Building Development Services Fund, which will be reflected in the Special Revenue section of this report. Licenses and permits revenue collections are tracking slightly below par with receipts totaling $0.2 million, or 6.9% of the $3.1 million budget.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue collected in this category through July of $18,000 is tracking to end the year well below the budgeted estimate 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 pe riod.
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 July 31, 2022, very little revenue has been received in this category , which is consistent with the prior year.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through July 31, 2022, collections totaled approximately $1.3 million or 4% of the budget. This reflects a 39% decrease compared to last year’s collections through the same period of $2.1 million. This large decrease is a result of timing differences in the bo oking of interdepartmental charges directly related to
6 City of Santa Clara
Financial Status Report as of July 31, 2022
the cost allocation plan . Last fiscal year, these charges were booked in July, whereas these charges have not yet occurred this fiscal year.
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. Through July, this transfer has not yet been received.
Use of Money & Property: Includes realized investment income and rental income. Interest income and rent revenue collections totaled less than $3,000, or 0.2% 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 July 31, 2022, collections are consistent with prior year levels at $45,000.
Stadium Operation: Through July 2022, collections totaled $ 0.3 million, which is in line with prior year levels. The current negative amount under the charges for services ca tegory reflects an accrual amount for charges for services.
7 City of Santa Clara
Financial Status Report as of July 31, 2022
General Fund Expenditures
As of July 31, 2022, $29.9 million or 10.7% of the General 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 Building D evelopment Services Fund as well as higher transfers to Capital Funds . Overall, expenditures in the G eneral Fund are within budgeted levels through July. Departmental expenditures totaled $17.4 million, or 6.7% of the budget, which i s below the par level of 8.3% of the b udget. 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 controls around overtime, as-needed staff, marketing, travel, technol ogy and vehicle purchases. With these measures, expenditures are expected to end the year below budget.
Adopted Budget
Amended
Budget
Actual Through
7/31/2022
Percentage
Used
Actual Through
7/31/2021
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 7,514,334$ 7,656,881$ 404,052$ 5.28% 405,519$ (1,467)$ -0.36% City Council 861,105 861,105 38,976 4.53% 64,139 (25,163) -39.23% City Clerk 2,076,112 2,080,362 79,502 3.82% 122,148 (42,646) -34.91% City Manager 6,085,321 6,277,494 358,840 5.72% 432,686 (73,846) -17.07% City Attorney 3,202,735 3,690,974 262,985 7.13% 184,411 78,574 42.61% Human Resources 4,508,710 4,692,801 239,614 5.11% 288,683 (49,069) -17.00% Finance 19,045,131 19,836,493 1,246,401 6.28% 1,347,698 (101,297) -7.52% Total General Government 43,293,448 45,096,110 2,630,370 5.83% 2,845,284 (214,914) -7.55% PUBLIC WORKS 24,021,840 24,978,624 1,168,564 4.68% 2,051,744 (883,180) -43.05% COMMUNITY DEVELOPMENT 5,398,007 5,590,765 299,055 5.35% 432,075 (133,020) -30.79% PARKS AND RECREATION 21,695,302 22,082,661 1,281,419 5.80% 1,259,648 21,771 1.73%
PUBLIC SAFETY
Fire 62,298,852 65,454,697 5,368,085 8.20% 5,068,882 299,203 5.90% Police 84,615,023 84,924,035 5,943,854 7.00% 6,247,671 (303,817) -4.86% Total Public Safety 146,913,875 150,378,732 11,311,939 7.52% 11,316,553 (4,614) -0.04% LIBRARY 11,889,451 12,039,461 741,804 6.16% 657,000 84,804 12.91% DEPARTMENTAL TOTAL 253,211,923 260,166,353 17,433,151 6.70% 18,562,304 (1,129,153) -6.08%
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 7,379,668 662,620 8.98% 268,744 393,876 146.56% TOTAL GENERAL FUND 272,355,355$ 279,325,306$ 29,875,056$ 10.70% 61,286,912$ (31,411,856)$ -51.25% 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 July 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. Through July, expenditures totaled $0.4 million, or 5.3% of the budget.
These expenditures are below the par level of 8.3% but are consistent with prior year levels.
City Attorney: Actual expenditures through July totaled approximately $0.3 million, which is 7.1% of the budget, which is below par. Spending is significantly above the total expenditures through t he same time last fiscal year by 42.6%. This increase is due to the hi gher activity levels for contractual legal services. This increase in spending is partially offset by internal service all ocation charges, as they are not yet reflected in the July data.
City Clerk: Through July, actual expenditures were tracking below budget at $0.1 million or approximately 3.8% of the budget, reflecting a 35% drop in spending compared to last fiscal year. This is a result of lower separation payout expenses as well as the internal service allocation charges, which are not yet reflected in the July data.
City Council: Through July, expenditures were at 4.5% of budget, which is below par. Compared to the same period through last fiscal year, this reflects a 39.2 % decrease in expenditures. This is a result of the timing of the internal service allocation charges, which are not yet reflected in the July data in addition to savings due to vacancies in the department.
City Manager: The actual expenditures through July totaled $0.3 million, or 5.7% of the budget, which is below par for this time of the year. Expenditures are approximately 17% lower compared with the spending level through the same period last fiscal year. This is a result of the timing of the internal service allocation charges, which a re not yet reflected in the July data as well as vacancy savings within the department.
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 July, departmental expenditures for the Planning and Housing and Community Services divisions totaled $0.3 million, or 5.4% of the budget, which is below par of 8.3%. This is a result of the timing of the internal service allocation charges, which are not yet reflected in the July data, as well as lower contractual services spending.
Finance Department: Through July, the Department’s expenditures totaled $1.2 million, or 6.3% of the budget, which is below par. This expenditure level was approximately 7.5% lower than through the same period last year. Similar to the other departmental tracking, this is a result of the timing of the internal service allocation charges, which are not yet reflected in t he July data.
Fire Department: Through July, actual expenditures in the General Fund totaled $5.4 million, or 8.2% of the budget, which is at par. These expenditures reflect a 5.9% increase from expenditures through
9 City of Santa Clara
Financial Status Report as of July 31, 2022
the same period last fiscal year. The increase in spending is partially offset by internal service allocation charges, as they are not yet reflected in the July data. Overtime expenditures are tracking at 14% 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 backf ill for vacant positions and the vacancy savings offset a portion of the overtime costs.
Library Department: Through July, actual expenditures totaled $ 0.7 million, or 6% of the budget, which is below par, but higher t han expenditure levels last fiscal year. The higher spending is a result of the reopening of libraries, which began earlier this calendar year.
Parks and Recreation Department: Through July, actual expenditures totaled $1.3 million, or 5.8% of the budget, which is below par, but consistent with prior year actuals of $1.2 million. Similar to other departments, internal service allocation charg es are not yet reflected in the July data.
Police Department: Expenditures through July are tracking at expected levels at $5.9 million, or 7% of the budget; this is approximately 4.8% below prior year spending. Again, this is also a result of the timing of the internal service allocation charges, which are not yet reflected in the July data.
Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures totaled $0.6 million through July and are tracking at budgeted levels.
10 City of Santa Clara
Financial Status Report as of July 31, 2022
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of July 31, 2022. The amended budget reflects carryover encumbrances from fiscal year 2021/22 and budget amendments approved by the City Council through July 2022. Effective July 1, 2021, all Building Division revenu es and expenditures are now budgeted and accounted for in the Bu ilding Development Services Fund, which is included in the table below. Revenues totaled approximately $2.3 million, while expenditures totaled approximately $2.8 million through the end of July. Overall, 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 h ousing 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 to Council in December 2022.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 7/31/2022 received 7/31/2021 Prior Year Change Housing Authority Fund 280,000$ 280,000$ 5,776$ 2.06% 6,687$ (911)$ -13.62% City Affordable Housing Fund 682,000 682,000 32,279 4.73% 13,737 18,542 134.98% Housing Successor Fund 350,000 350,000 106,560 30.45% 31,975 74,585 233.26% Housing and Urban Development 1,810,000 1,810,000 78,768 4.35% 500 78,268 15653.60% Building Development Services Fee
Fund
14,112,000 14,112,000 2,044,953 14.49% 1,368,597 676,356 49.42% TOTAL 17,234,000$ 17,234,000$ 2,268,336$ 13.16% 1,421,496$ 846,840$ 59.57% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 7/31/2022 use d 7/31/2021 Prior Year Change Housing Authority Fund 380,363$ 478,326$ 14,305$ 2.99% 3,681$ 10,624$ 288.62% City Affordable Housing Fund 1,685,731 2,794,313 70,981 2.54% 125,761 (54,780) -43.56% Housing Successor Fund 1,242,599 1,374,178 1,621,232 117.98% 78,136 1,543,096 1974.88% Housing and Urban Development 2,379,814 3,128,522 248,843 7.95% 308,817 (59,974) -19.42% Building Development Services Fee
Fund
13,360,809 15,008,207 819,503 5.46% 651,932 167,571 25.70% TOTAL 19,049,316$ 22,783,546$ 2,774,864$ 12.18% 1,168,327$ 1,606,537$ 137.51%
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 July 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 July 2022. As of July 31, 2022, these capital fund expenditures totaled $2.0 million, or 1.5% of the amended budget. As part of the adoption of the FY 2022/23 and FY 2023/24 capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 202 2.
Necessary additional adjustments to the capit al carryover amounts will be brought forward as part of the Budgetary Year-End Report for FY 2021/22, expected to go t o Council in December 2022.
The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program (CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capi tal funds excluding transfers.
EXPENDITURES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 7/31/2022 Use d Parks & Recreation 4,667,991$ 22,437,801$ 27,105,792$ 3,019$ 0.01% Streets & Highways 15,163,050 59,970,079 75,133,129 1,647,649 2.19% Storm Drain 963,432 6,657,501 7,620,933 1,877 0.02% Fire 661,766 1,768,679 2,430,445 1,045 0.04% Library 281,831 297,590 579,421 6,500 1.12% Public Buildings 1,189,532 4,061,069 5,250,601 37,300 0.71% General Gov't - Other 1,950,000 7,453,526 9,403,526 221,605 2.36% Related Santa Clara Developer 2,902,465 598,382 3,500,847 97,015 2.77% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 - 0.00% Tasman East Specific
Infrastructure Improvement
Fund
2,876,218 - 2,876,218 - 0.00% TOTAL 30,725,490$ 103,244,627$ 133,970,117$ 2,016,010$ 1.50%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
12 City of Santa Clara
Financial Status Report as of July 31, 2022
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of July 31, 2022. Overall, revenues and expenditures are tracking below budgeted levels.
The revenues are tracking significantly higher than prior year lev els, while expenditures are currently lower from prior years levels. Similar to the General Fund departmental expenditures, the decrease in spending is partially due to the timing of the internal service allocation charges, which are not yet reflected in the July data. In the Electric Utility Fund, the transfer to the General Fund was not recorded for July, resulting in lower expenditures compared to last fiscal year.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 7/31/2022 received 7/31/2021 Prior Year Change Electric Utility Fund 615,818,445$ 615,818,445$ 8,453,285$ 1.37% 4,968,213$ 3,485,072$ 70.15% Water Utility Fund 48,358,520 48,358,520 1,588,763 3.29% 797,657 791,106 99.18% Sewer Utility Fund 40,459,345 40,459,345 936,552 2.31% 283,214 653,338 230.69% Cemetery Fund 600,000 600,000 20,825 3.47% 78,595 (57,770) -73.50% Solid Waste Utility Fund 37,245,092 37,245,092 1,039,802 2.79% 1,010,812 28,990 2.87% Water Recycling Fund 5,708,446 5,708,446 65,223 1.14% 45,282 19,941 44.04% TOTAL REVENUE 748,189,848$ 748,189,848$ 12,104,450$ 1.62% 7,183,773$ 4,920,677$ 68.50% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 7/31/2022 Use d 7/31/2021 Prior Year Change Electric Utility Fund 603,681,580$ 606,315,831$ 16,934,394$ 2.79% 39,278,149$ (22,343,755)$ -56.89% Water Utility Fund 46,797,065 48,412,861 621,621 1.28% 1,173,681 (552,060) -47.04% Sewer Utility Fund 30,825,023 31,046,671 895,090 2.88% 1,103,120 (208,030) -18.86% Cemetery Fund 1,539,796 1,539,796 67,418 4.38% 93,754 (26,336) -28.09% Solid Waste Utility Fund 36,626,118 40,159,684 895,993 2.23% 1,654,813 (758,820) -45.86% Water Recycling Fund 5,729,413 5,729,413 41,318 0.72% 65,164 (23,846) -36.59% TOTAL - Operating
Appropriations
725,198,995$ 733,204,256$ 19,455,834$ 2.65% 43,368,681$ (23,912,847)$ -55.14% PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2022/23
CITY OF SANTA CLARA
ENTERPRISE OPERATING FUNDS
REVENUES AND EXPENSES - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2022/23 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.
13 City of Santa Clara
Financial Status Report as of July 31, 2022
A summary of expenses in the Enterprise Capital Improvement Funds is detailed in the table below.
Actuals through July 2022 totaled approximately $1.4 million, or 0.5% of the amended budget. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2022/23 and FY 2023/24 budget adoption process for those projects that have not yet been completed. Adjustments to the capital carryover amounts based on actual year-end expenditures will be brought forward in December 2022, as part of the FY 2021/22 year-end reconciliation process.
Prior Year
Actual Actual
Fund Current Year Prior Year Total Amended Through Percentage Through Description Appropriation Carryforward Budget 7/31/2022 Use d 7/31/2021 Electric Utility Fund 96,088,981$ 118,664,746$ 214,753,727$ 1,351,450$ 0.63% 30,746$ Street Lighting (1) 71,455 4,820,273 4,891,728 5,841 0.12% 13,475 Water Utility Fund 6,665,000 1,368,212 8,033,212 84,511 1.05% 212,184 Sewer Utility Fund 19,815,641 25,615,224 45,430,865 - 0.00% 688,205 Cemetery Fund 9,225 278,397 287,622 - - 700 Solid Waste Utility Fund 743,000 148,520 891,520 - 0.00% 1,879 Water Recycling Fund 50,000 - 50,000 - - - Convention Center
Capital Fund
2,622,854 2,622,854 - - 201,462
TOTAL - CIP
Appropriations
123,443,301$ 153,518,227$ 276,961,528$ 1,441,802$ 0.52% 1,148,651$ 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 July 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 Reserve assures 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 July 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 10,474,520
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 57,894,545$ 157,736,368$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
July 31, 2022
16 City of Santa Clara
Financial Status Report as of July 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 July 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 July 2022 and for fiscal year 2022/23 are shown in the table below.
Department Jul-22
Fis cal Year
2022/23
Year To Date Designated Use
Parks & Recreation 26 26 Roberta Jones Jr. Theatre
Parks & Recreation 9,375 9,375 Wade Brummal
TOTALS 9,401$ 9,401$