_____________________________________________________________________
MONTHLY FINANCIAL STATUS REPORT
October 2022
City of
Santa Clara
The Center of What 's Possible
1 City of Santa Clara
Financial Status Report as of October 31, 2022
This report summarizes the City’s financial performance for the month ended October 31, 2022.
Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds. Financial information included in this report is unaudited.
General Fund
The General Fund is the major operating fund for the City and includes multiple programs, services, and activities for the residents and businesses of the City. The adopted budget for operating revenues and expenditures for fiscal year 2022/23 was $272.4 million. The amended budget for revenues and expenditures was adjusted to $280.9 million to reflect various budget amendments approved by the City Council through October 2022.
While it is very early in the fiscal year and limited data is available, General Fund revenues are currently tracking within estimated levels. Through October, expenditures are tracking slightly below budget and this trend is expected to continue as departments continue to control expenditures through various cost control measures.
Economic indicators are mixed, and there is a tremendous amount of uncertainty. Given this level of uncertainty, the December 2022 UCLA Forecast presented a two-scenario economic forecast. “One scenario is no recession, where economic growth is “just right”, inflation ebbs, labor market constraints loosen, and the Federal Reserve takes a less aggressive approach to monetary policy tightening. The second scenario is a recession, where inflation would have continued to run hot if not for aggressive Federal Reserve action. In this scenario, the Federal Reserve forces a recession and accepts an economic contraction and higher unemployment to combat inflation. Importantly, the difference in the two scenarios is the exogenous decision of the Federal Reserve is setting monetary policy.”1 Many companies are anticipating a slowdown. A survey of 400 leaders of large U.S. companies by the KPMG consulting firm found 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 Consumers are also more pessimistic about current economic conditions. The Conference Board Consumer Confidence Index declined in November after losing ground in October. “Inflation expectations increased to their highest level since July, with both gas and food prices as the main culprits. Intentions to purchase homes, automobiles, and big-ticket appliances all cooled. The combination of inflation and interest rate hikes will continue to pose challenges to confidence and economic growth into early 2023.”3 On a national level, the unemployment rate remained unchanged at 3.7% between October 2022 and November 2022. This rate was well below the record setting high of 14.7% in April 2020, and slightly above the pre-pandemic unemployment rate of 3.5%. In November, the number of unemployed
1 UCLA Anderson Forecast, December 2022, Goldilocks or Bust: Will the Economy by “Just Right” or Will We have a Recession?
2 CEOs are preparing for a recession, and they don't think it will be short | CNN Business 3 https://www.conference-board.org/topics/consumer-confidence
2 City of Santa Clara
Financial Status Report as of October 31, 2022
persons fell slightly to 6.0 million from 6.1 million in October. This unemployment figure has increased slightly above the pre-pandemic level of 5.7 million.4
In the third quarter 2022 second estimate, the Gross Domestic Product (GDP) increased by 2.9%, following a GDP decrease of 0.6% in the second quarter. The increase in the third quarter primarily reflected increases in exports, consumer spending, business investment, and government spending that were partly offset by a decrease in housing investment and inventory investment.5
4 https://www.bls.gov/news.release/pdf/empsit.pdf
5 https://www.bea.gov/sites/default/files/2022-11/tech3q22_2nd.pdf
3 City of Santa Clara
Financial Status Report as of October 31, 2022
The December 2022 UCLA Anderson Forecast projects strong GDP performance in the 4th quarter 2022 driven by consumption and business investment. After that point, the Forecast has differing projections based on the recession or no-recession scenarios as illustrated below. The real GDP gap between these scenarios totals $490 billion by the end of 2023 and $330 billion by 2024.
The December 2022 UCLA Forecast for California includes soft-landing and recession scenarios given the current economic uncertainly. In both scenarios, a milder impact is expected for the California economy. In the soft-landing scenario, California continues to grow at a faster rate than the US, led by more construction, ample state government rainy day funds, and increased demand for defense goods as well as labor saving equipment and software. In the recession scenario, the California economy declines but by less than the US.6
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 increased slightly from 3.8% in September 2022 to 4.0% in October 2022. It is important to note that the September 2022 unemployment rate of 3.8% was the lowest on record for this data set that dates back to 1976. The October 2022 rate is lower compared to the 6.1% rate in October 2021. California has now not only regained all of the 2.76 million nonfarm jobs lost due to COVID-19 in March and April 2020, it has now surpassed it with a gain of 2.79 million jobs since that time.7 The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) remained unchanged at 2.2% between October 2022, and September 2022, and below the
6 UCLA Anderson Forecast, A Tale of Two Scenarios: The California Report, December 2022 7 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-october-2022
4 City of Santa Clara
Financial Status Report as of October 31, 2022
October 2021 level of 3.7% and the February 2020 pre-pandemic level of 2.6%. Between October 2021 and October 2022, employment in this region increased by 57,600 jobs, or 5.1%.8 The largest increases were in professional and business services (up 15,000 jobs), leisure and hospitality (up 12,800 jobs), and private educational and health services (up 10,100 jobs).
Staff will continue to closely monitor the economic environment and the City’s financial performance and provide updates through the Monthly Financial Reports.
8 https://www.labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
5 City of Santa Clara
Financial Status Report as of October 31, 2022
General Fund Revenues
As of October 31, 2022, $48.8 million or 20% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $42 million have occurred as budgeted. This low collection level through October is largely due to the timing of payments. In some categories, a portion of the revenues received through October 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 year.
Adopted Budget
Amended
Budget
Actual Through
10/31/2022
Percentage
Received
Actual Through
10/31/2021
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,173,000$ 60,173,000$ 9,818,899$ 16.32% 8,161,070$ 1,657,829$ 20.31% Property Tax 75,261,000 75,261,000 2,964,873 3.94% 2,643,981 320,892 12.14% Transient Occupancy Tax 12,600,000 12,600,000 3,928,582 31.18% 1,301,249 2,627,333 201.91% Other Taxes 6,260,000 6,260,000 927,930 14.82% 741,594 186,336 25.13% Total Taxes 154,294,000 154,294,000 17,640,284 11.43% 12,847,894 4,792,390 37.30%
LICENSES & PERMITS
Business Licenses 900,000 900,000 283,484 31.50% 298,161 (14,677) -4.92% Fire Operation Permits 2,100,000 2,358,000 644,230 27.32% 686,903 (42,673) -6.21% Building Permits - - - N/A - - N/A Electric Permits - - - N/A - - N/A Plumbing Permits - - - N/A - - N/A Mechanical Permits - - - N/A - - N/A Miscellaneous Permits 72,000 72,000 30,974 43.02% 25,397 5,577 21.96% Total Licenses & Permits 3,072,000 3,330,000 958,688 28.79% 1,010,461 (51,773) -5.12% FINES & PENALTIES 1,465,000 1,615,000 80,789 5.00% 92,700 (11,911) -12.85% INTERGOVERNMENTAL 310,000 310,000 1,648,076 531.64% 133,649 1,514,427 1133.14% CHARGES FOR SERVICES 31,258,098 31,258,098 10,843,813 34.69% 9,702,205 1,141,609 11.77% SILICON VALLEY POWER TRANSFER 26,170,000 26,170,000 9,547,962 36.48% 8,591,126 956,836 11.14%
USE OF MONEY & PROPERTY
Interest 2,532,000 2,532,000 74,723 2.95% (298,744) 373,467 -125.01% Rent 10,584,266 10,584,266 3,484,534 32.92% 3,232,839 251,695 7.79% Total Use of Money & Property 13,116,266 13,116,266 3,559,257 27.14% 2,934,095 625,162 21.31% MISCELLANEOUS REVENUES 150,000 189,099 1,842,431 974.32% 291,301 1,551,130 532.48%
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 33,702,079 33,702,079 100.00% 32,456,888 1,245,191 3.84% 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 2,370,374 2,370,374 100.00% 5,427,399 (3,057,025) -56.33% Total Other Financing Sources 33,878,344 42,011,179 42,011,179 100.00% 44,155,945 (2,144,767) -4.86%
STADIUM OPERATION
Charges for Services 7,889,147 7,889,147 2,173,565 27.55% 1,147,260 1,026,305 89.46% Rent and Licensing 752,500 752,500 507,777 67.48% 111,435 396,342 355.67% Total Stadium Operation 8,641,647 8,641,647 2,681,342 31.03% 1,258,695 1,422,647 113.03% TOTAL GENERAL FUND 272,355,355$ 280,935,289$ 90,813,821$ 32.33% 81,018,071$ 9,795,750$ 12.09% (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
6 City of Santa Clara
Financial Status Report as of October 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 October 31, 2022, approximately $9.8 million has been collected. This reflects an increase of $1.6 million when compared to collections through the same period last fiscal year. While not reflected in the data through October, true-up information for the third quarter of 2022 was received from the State in November and reflected an increase of 15.7% when compared to the third quarter 2021. Growth of 3% is needed in the remaining three quarters to meet the budgeted estimate of $59.4 million. Internet sales represents a sizeable amount of the City’s sales tax revenue. The County pool, which includes internet sales, accounts for approximately 20% of the sales tax the City receives.
Property Tax: Through October, 4.0% of the property tax budgeted estimate has been received. The majority of property tax revenue is collected in February and April each year. Based on information from the County of Santa Clara, property tax receipts are projected to end the year 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 October 31, 2022, approximately $3.9 million has been received, which is significantly higher than receipts through the same period last fiscal year of $1.3 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 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 $0.9 million through October, which higher than prior year collection levels. Receipts through October reflect higher collections in the franchise tax category that is partially offset by lower receipts in the documentary transfer tax category.
Licenses & Permits: Includes business licenses, fire operation permits, and miscellaneous permits and fees. Effective FY 2021/22, building, electric, plumbing, and mechanical permits are budgeted in the Building Development Services Fund, which is reflected in the Special Revenue section of this report. Licenses and permits revenue collections are tracking slightly below par with receipts totaling $1.0 million, or 28.8% of the budget of $3.3 million.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue of approximately $81,000 collected in this category through October is tracking to end the year well below the budgeted estimate of $1.6 million largely due to the waiving of late fees implemented 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 October 31, 2022, $1.6 million has been received, which is well above receipts through the
7 City of Santa Clara
Financial Status Report as of October 31, 2022
same period last year. This is a result of a $1.5 million settlement payment from the City of San Jose regarding the North San Jose Development Project.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through October 31, 2022, collections totaled approximately $10.8 million or 34.7% of the budget. This reflects an 11% increase compared to last year’s collections through the same period of $9.7 million. This increase is a result of higher collections for planning and zoning fees, technology fee, engineering fees, and Fire EMS fees.
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 October 31, 2022, $9.5 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 $3.6 million, or 27.1% of the budget. These collections are higher than collections through last fiscal year of $2.9 million.
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through October 31, 2022, collections of $1.8 million are higher than collections through the same period last fiscal year of $0.3 million. This increase is primarily attributable to the settlement between the City, the Santa Clara Stadium Authority, and the Forty-Niners SC Stadium Company LLC and Forty Niners Stadium Management Company LLC (collectively, the Forty-Niners).
Stadium Operation: As of October 31, 2022, charges for services collected through the Stadium totaled $2.7 million, which is on par for this time of year. This is also higher than collections through the same period last year resulting from the reopening of Stadium for events.
8 City of Santa Clara
Financial Status Report as of October 31, 2022
General Fund Expenditures
As of October 31, 2022, $95.8 million or 34.1% 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 Bui lding D evelopment Services Fund as well as higher tr ansfers to Capital Funds. Overall, expenditures in the General Fund are within budgeted levels through October. Departmental expenditures totaled $80.9 million, or 30.9% of the budget, which is slightly below the par level of 33% of the budget. Several cost-control measures that were implemented in FY 2019/20 remain in place to generate expendi ture savings. These measures include a hiring freeze and controls around overti me, as-needed s taff, mark eting, t ravel, technology and vehi cle purchases. With these measures, expenditures are expected to end the year below budget.
Adopted Budget
Amended
Budget
Actual Through
10/31/2022
Percentage
Used
Actual Through
10/31/2021
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 7,514,334$ 7,647,394$ 1,433,687$ 18.75% 1,148,694$ 284,993$ 24.81% City Council 861,105 862,396 209,862 24.33% 259,648 (49,786) -19.17% City Clerk 2,076,112 2,093,661 652,098 31.15% 500,752 151,346 30.22% City Manager 6,085,321 6,292,428 1,503,874 23.90% 1,666,881 (163,007) -9.78% City Attorney 3,202,735 3,690,974 1,043,419 28.27% 744,656 298,763 40.12% Human Resources 4,508,710 4,828,451 1,183,933 24.52% 1,209,363 (25,430) -2.10% Finance 19,045,131 20,272,300 5,665,128 27.95% 5,094,270 570,858 11.21% Total General Government 43,293,448 45,687,604 11,692,001 25.59% 10,624,264 1,067,737 10.05% PUBLIC WORKS 24,021,840 25,092,840 7,360,760 29.33% 7,298,384 62,377 0.85% COMMUNITY DEVELOPMENT 5,398,007 5,665,420 1,491,664 26.33% 1,448,779 42,885 2.96% PARKS AND RECREATION 21,695,302 22,287,115 7,074,558 31.74% 5,910,549 1,164,009 19.69%
PUBLIC SAFETY
Fire 62,298,852 65,767,826 22,779,947 34.64% 20,873,029 1,906,918 9.14% Police 84,615,023 84,981,549 26,969,565 31.74% 24,822,791 2,146,774 8.65% Total Public Safety 146,913,875 150,749,375 49,749,512 33.00% 45,695,820 4,053,692 8.87% LIBRARY 11,889,451 12,277,870 3,552,556 28.93% 2,733,940 818,616 29.94% DEPARTMENTAL TOTAL 253,211,923 261,760,224 80,921,051 30.91% 73,711,736 7,209,316 9.78%
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 8,641,613 8,641,613 100.00% 11,773,925 (3,132,312) -26.60% Operating Transfer Out - Reserves - - - N/A 3,309,009 (3,309,009) -100.00% Total Other Financing Uses 11,779,285 11,795,397 11,795,397 100.00% 42,455,864 (30,660,467) -72.22% STADIUM OPERATION 7,364,147 7,379,668 3,100,175 42.01% 1,888,583 1,211,592 64.15% TOTAL GENERAL FUND 272,355,355$ 280,935,289$ 95,816,623$ 34.11% 118,056,183$ (22,239,559)$ -18.84% Function
CITY OF SANTA CLARA
GENERAL FUND
EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2022/23 PY EXPENDITURES COMPARISON
9 City of Santa Clara
Financial Status Report as of October 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 October 31, 2022, expenditures totaled $1.4 million, or 18.8% of the budget. These expenditures are below the par level of 33% but are higher than the prior year levels, primarily as a result of higher expenditures in the contractual services, advertising and community promotion, as well as salaries and benefits categories.
City Attorney: As of October 31, 2022, actual expenditures totaled approximately $1.0 million, which is within expected levels at 28.3% of the budget. Spending is 40% above the total expenditures through the same time last fiscal year due to higher contractual legal services costs and salaries and benefits.
City Clerk: Through October, actual expenditures were tracking slightly above budget at $0.7 million or approximately 31.2% of the budget. This reflects a 30% increase in spending compared to prior year spend levels. This is a result of one-time special election costs as well as Granicus costs that are paid every other year.
City Council: Through October 31, 2022, expenditures were at 24.3% of budget, which is below par.
Compared to the same period through last fiscal year, this reflects a spending decrease of approximately 19%, which is primarily the result of savings due to vacancies within the department.
City Manager: The actual expenditures through October totaled $1.5 million, or 23.9% of the budget, which is below par for this time of the year. Expenditures are 9.7% lower compared with the spending level through the same period last fiscal year. This decrease reflects lower spending in salaries and benefits; however, this is offset by higher spending in the as-needed category.
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 October, departmental expenditures for the Planning and Housing and Community Services divisions totaled $1.5 million, or 26.3%, which is below the par level of 33%. Expenditures were slightly above the spending through the same period last fiscal year due to higher spending in the salaries and benefits categories.
Finance Department: Through October, the Department’s expenditures totaled $5.7 million, or 28% of the budget, which is below par. This expenditure level was approximately 11.2% higher than expenditure levels through the same period last year. This is a result of higher expenditures primarily in the salaries and benefits categories, which is partially offset by lower spending in the contractual services category.
Fire Department: As of October 31, 2022, actual expenditures totaled $22.8 million, or 34.6% of the budget, which is slightly above par. These expenditures reflect a 9.1% increase from expenditures through the same period last fiscal year. This increase in spending reflects higher costs in the salaries
10 City of Santa Clara
Financial Status Report as of October 31, 2022
and benefits as well as contractual services and capital outlay categories. Overtime expenditures are tracking at 60.2% 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 costs.
Library Department: Through October, actual expenditures totaled $3.6 million, or 28.9% of the budget, which is below par, but nearly 30% 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 October, actual expenditures totaled approximately $7.1 million, or 31.7% of the budget, which is slightly below par, but above the prior year actuals of $5.9 million. This is due to the department resuming activities that were previously impacted by COVID-19 restrictions.
Police Department: Expenditures as of October 31, 2022 are tracking at expected levels at $27.0 million, or 31.7% of the budget. This is approximately 8.6% higher when compared to spending levels through the same period last fiscal year, primarily reflecting higher charges in the salaries and benefits, as-needed, and contractual services categories.
Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures totaled $3.1 million through October and are tracking above budgeted levels at 42%. This is 64% higher than expenditures through the same period last year, as a direct result of the reopening of the Stadium for events. While spending is above par, it is anticipated that spending will be slowing down for the remainder of the fiscal year.
11 City of Santa Clara
Financial Status Report as of October 31, 2022
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of October 31, 2022. The amended budget reflects carryover encumbrances from fiscal year 2021/22 and budget amendments approved by the City Council through October 2022. Effective July 1, 2021, all Building Division revenues and expenditures are budgeted and accounted for in the Building Development Services Fund, which is included in the table below.
Revenues totaled approximately $8.3 million, while expenditures totaled approximately $6.5 million through the end of October. Overall, revenues are tracking above par, while expenditures are tracking below par. The negative expenditure in the City Affordable Housing Fund reflects an accounting change in the special disbursements category. Originally, the full loan amount was charged; however, the charges now only reflect the progress through the construction period. In the Housing Successor Agency Fund, the expenditures are currently showing as over budget as a result of a special disbursements for a housing loan, which was budgeted in FY 2021/22. An adjustment to carryover this budget was included in the Budgetary Year-End Report for FY 2021/22 approved December 6, 2022 and will be reflected in future Monthly Financial Reports.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 10/31/2022 received 10/31/2021 Prior Year Change Housing Authority Fund 280,000$ 280,000$ 31,878$ 11.39% 203,273$ (171,395)$ -84.32% City Affordable Housing Fund 682,000 682,000 175,908 25.79% 151,951 23,957 15.77% Housing Successor Fund 350,000 350,000 418,521 119.58% 242,909 175,612 72.30% Housing and Urban Development 1,810,000 1,810,000 421,218 23.27% 1,315,279 (894,061) -67.98% Building Development Services
Fee Fund
14,112,000 14,112,000 7,231,988 51.25% 4,996,562 2,235,426 44.74% TOTAL 17,234,000$ 17,234,000$ 8,279,513$ 48.04% 6,909,974$ 1,369,539$ 19.82% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 10/31/2022 used 10/31/2021 Prior Year Change Housing Authority Fund 380,363$ 478,326$ 65,411$ 13.67% 42,073$ 23,338$ 55.47% City Affordable Housing Fund 1,685,731 5,794,313 (1,261,599) -21.77% 418,216 (1,679,815) -401.66% Housing Successor Fund 1,242,599 1,374,178 2,543,318 185.08% 310,606 2,232,712 718.82% Housing and Urban Development 2,355,815 3,109,523 743,924 23.92% 1,197,234 (453,310) -37.86% Building Development Services
Fee Fund
13,360,809 15,224,237 4,378,702 28.76% 3,254,082 1,124,620 34.56% TOTAL 19,025,317$ 25,980,577$ 6,469,756$ 24.90% 5,222,211$ 1,247,545$ 23.89%
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
12 City of Santa Clara
Financial Status Report as of October 31, 2022
Governmental Capital Improvement Funds
The table below lists the revenue for selected capital improvement funds. The amended budget reflects current year appropriations, prior year carryover, and budget amendments approved through October 2022. As of October 31, 2022, the capital fund revenue totaled $20.4 million. In the Parks and Recreation Capital Fund, $16.7 million has been collected; of that, $16.4 million is Mitigation Fee Act revenue.
REVENUES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 10/31/2022 Used Parks & Recreation -$ 3,556,622$ 3,556,622$ 16,737,130$ 470.59% Streets & Highways 4,594,005 15,190,594 19,784,599 153,426 0.78% Storm Drain 1,454,000 - 1,454,000 482,863 33.21% Public Buildings - 100,000 100,000 - 0.00% Related Santa Clara Developer 2,908,317 - 2,908,317 611,591 21.03% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 - 0.00% Tasman East Specific
Infrastructure Improvement
Fund
2,413,605 - 2,413,605 2,419,501 100.24% TOTAL 11,439,132$ 18,847,216$ 30,286,348$ 20,404,511$ 67.37%
CITY OF SANTA CLARA
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
The table below lists the total amended budgeted amounts for expenditures in the Capital Improvement Funds. Similar to the revenue table, the amended expenditure budgets consist of current year appropriations, prior year carryover encumbrance balances in Governmental Capital Improvement Funds, and budget amendments approved through October 2022. As of October 31, 2022, capital fund expenditures totaled $10.5 million, or 8% of the amended budget.
As part of the adoption of the FY 2022/23 and FY 2023/24 capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2022.
Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2021/22 approved on December 6, 2022. These adjustments will be reflected in future Monthly Financial Reports.
The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program (CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.
13 City of Santa Clara
Financial Status Report as of October 31, 2022
EXPENDITURES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 10/31/2022 Used Parks & Recreation 4,670,520$ 22,437,801$ 27,108,321$ 712,507$ 2.63% Streets & Highways 15,200,469 59,970,079 75,170,548 6,225,727 8.28% Storm Drain 964,596 6,657,501 7,622,097 1,514,625 19.87% Fire 661,766 1,768,679 2,430,445 127,852 5.26% Library 281,831 297,590 579,421 25,063 4.33% Public Buildings 1,189,532 4,061,069 5,250,601 382,464 7.28% General Gov't - Other 2,000,970 7,453,526 9,454,496 641,763 6.79% Related Santa Clara Developer 2,908,317 598,382 3,506,699 822,289 23.45% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 18,140 26.21% Tasman East Specific
Infrastructure Improvement
Fund
3,221,395 - 3,221,395 8,045 0.25% TOTAL 31,168,601$ 103,244,627$ 134,413,228$ 10,478,475$ 7.80%
EXPENDITURE - OVERVIEW AND COMPARISON BY FUND
CITY OF SANTA CLARA
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
14 City of Santa Clara
Financial Status Report as of October 31, 2022
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of October 31, 2022. Overall, revenues and expenditures are tracking below budgeted levels.
Revenues and expenditures are tracking above last fiscal year levels. Expenditures are tracking higher in the Water Utility Fund and Water Recycling Fund as a result of higher spending in the resources category. In the Electric Utility Fund, there are higher expenditures in the salaries and benefits, miscellaneous services and supplies, and debt retirement categories, compared to last fiscal year.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 10/31/2022 received 10/31/2021 Prior Year Change Electric Utility Fund 615,818,445$ 615,818,445$ 175,310,083$ 28.47% 150,697,310$ 24,612,773$ 16.33% Water Utility Fund 48,358,520 48,358,520 16,990,409 35.13% 15,719,466 1,270,943 8.09% Sewer Utility Fund 40,459,345 40,459,345 12,833,326 31.72% 11,543,814 1,289,512 11.17% Cemetery Fund 600,000 600,000 237,827 39.64% 247,710 (9,883) -3.99% Solid Waste Utility Fund 37,245,092 37,245,092 10,097,835 27.11% 9,487,993 609,842 6.43% Water Recycling Fund 5,708,446 5,708,446 2,312,612 40.51% 2,462,362 (149,750) -6.08% TOTAL REVENUE 748,189,848$ 748,189,848$ 217,782,092$ 29.11% 190,158,655$ 27,623,437$ 14.53% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 10/31/2022 Used 10/31/2021 Prior Year Change Electric Utility Fund 603,681,580$ 607,998,843$ 176,116,683$ 28.97% 156,232,789$ 19,883,894$ 12.73% Water Utility Fund 46,797,065 48,478,478 14,591,317 30.10% 13,473,769 1,117,548 8.29% Sewer Utility Fund 30,825,023 31,072,051 8,232,433 26.49% 8,094,110 138,323 1.71% Cemetery Fund 1,539,796 1,545,944 486,851 31.49% 472,157 14,694 3.11% Solid Waste Utility Fund 36,626,118 40,169,992 9,228,797 22.97% 8,610,060 618,737 7.19% Water Recycling Fund 5,729,413 5,739,135 1,608,732 28.03% 1,390,407 218,325 15.70% TOTAL - Operating
Appropriations
725,198,995$ 735,004,443$ 210,264,813$ 28.61% 188,273,292$ 21,991,521$ 11.68%
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.
15 City of Santa Clara
Financial Status Report as of October 31, 2022
A summary of revenue and expenses in the Enterprise Capital Improvement Funds are detailed in the tables below. Actual revenue through October 2022 totaled approximately $19.7 million, consisting primarily of developer contributions in the Electric Utility Fund and transfers from operating in the Sewer Utility Fund. Enterprise capital fund expenses totaled $16.7 million, or 6.0% of the amended budget.
Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2022/23 and FY 2023/24 budget adoption process for those projects that have not yet been completed. Adjustments to the capital carryover amounts based on actual year-end expenditures were approved as part of the Budgetary Year-End Report for FY 2021/22 on December 6, 2022 and will be reflected in future Monthly Financial Reports.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 10/31/2022 Used Electric Utility Fund 35,850,877$ 14,907,345$ 50,758,222$ 12,295,751$ 24.22% Street Lighting (1)
- - - 23,455 N/A Sewer Utility Fund - - - 7,363,979 N/A Solid Waste Utility Fund 250,000 - 250,000 1,200 0.48%
TOTAL - CIP
Appropriations
36,100,877$ 14,907,345$ 51,008,222$ 19,684,385$ 38.59% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 10/31/2022 Used Electric Utility Fund 99,874,226$ 118,664,746$ 218,538,972$ 12,935,767$ 5.92% Street Lighting (1)
71,455 4,820,273 4,891,728 36,819 0.75% Water Utility Fund 6,665,000 1,368,212 8,033,212 745,983 9.29% Sewer Utility Fund 20,300,110 25,615,224 45,915,334 2,849,379 6.21% Cemetery Fund 9,225 278,397 287,622 15,555 0 Solid Waste Utility Fund 743,000 148,520 891,520 100,830 11.31% Water Recycling Fund 50,000 - 50,000 - - Convention Center
Capital Fund
- 2,622,854 2,622,854 - -
TOTAL - CIP
Appropriations
127,713,015$ 153,518,227$ 281,231,242$ 16,684,333$ 5.93% EXPENSES - FISCAL YEAR 2022/23
REVENUES - FISCAL YEAR 2022/23
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
CITY OF SANTA CLARA
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
EXPENDITURE - OVERVIEW AND COMPARISON BY FUND
(1) Street Lighting fund is part of Electric Capital Improvement Funds
16 City of Santa Clara
Financial Status Report as of October 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 ensure 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.
17 City of Santa Clara
Financial Status Report as of October 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 9,331,023
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 56,751,048$ 157,736,368$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
October 31, 2022
18 City of Santa Clara
Financial Status Report as of October 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 October 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 October 2022 and for fiscal year 2022/23 are shown in the table below.
Department Oct-22
Fiscal Year
2022/23
Year To Date Designated Use
City Manager's Office -$ 50$ Help Your Neighbor Parks & Recreation - 99 Case Management Parks & Recreation 25 1,250 Roberta Jones Jr. Theatre
Parks & Recreation 0 30,600 Wade Brummal
TOTALS 25$ 31,999$