_____________________________________________________________________
MONTHLY FINANCIAL STATUS REPORT
September 2022
City of
Santa Clara
The Center of What 's Possible
1 City of Santa Clara
Financial Status Report as of September 30, 2022
This report summarizes the City’s financial performance for the month ended September 30, 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 September 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 September, 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. 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 rates 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 the 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 months1.
Companies are anticipating a slowdown. A recent 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 increased slightly from 3.5% in September 2022 to 3.7% in October 2022. This rate was well below the record setting high of 14.7% in April 2020, and slightly
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.conference-board.org/topics/consumer-confidence
2 City of Santa Clara
Financial Status Report as of September 30, 2022
above the pre-pandemic unemployment rate of 3.5%. In October, the number of unemployed persons rose to 6.1 million from 5.7 million in September. This unemployment figure has increased slightly above the pre-pandemic level of 5.7 million.4
In the third quarter 2022 advance estimate, the Gross Domestic Product (GDP) increased by 2.6%, following a GDP decrease of 0.6% in the second quarter. The estimated increase in the third quarter reflected an acceleration in nonresidential fixed investment and an upturn in federal government spending. The real GDP for the second quarter 2022 is 3.5% above the level experienced in the fourth quarter of 2019.5
4 https://www.bls.gov/news.release/pdf/empsit.pdf
5 https://www.bea.gov/sites/default/files/2022-10/tech3q22_adv.pdf
3 City of Santa Clara
Financial Status Report as of September 30, 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 increases in demand in the defense 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 Anderson Forecast.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 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.
6 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-october-2022 8 https://www.labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of September 30, 2022
General Fund Revenues
As of September 30, 2022, $30.9 million or 13% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $42 million have occurred as budgeted. This very low collection level through September is largely due to the timing of payments. In some categories, much of the revenues received through September 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
9/30/2022
Percentage
Received
Actual Through
9/30/2021
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,173,000$ 60,173,000$ 4,966,516$ 8.25% 4,518,915$ 447,601$ 9.91% Property Tax 75,261,000 75,261,000 219,652 0.29% 68,943 150,709 218.60% Transient Occupancy Tax 12,600,000 12,600,000 1,756,416 13.94% 609,122 1,147,294 188.35% Other Taxes 6,260,000 6,260,000 426,167 6.81% 430,224 (4,057) -0.94% Total Taxes 154,294,000 154,294,000 7,368,751 4.78% 5,627,204 1,741,547 30.95%
LICENSES & PERMITS
Business Licenses 900,000 900,000 215,614 23.96% 231,667 (16,053) -6.93% Fire Operation Permits 2,100,000 2,358,000 480,700 20.39% 527,956 (47,256) -8.95% Building Permits - - - N/A 128,139 (128,139) -100.00% Electric Permits - - - N/A - - N/A Plumbing Permits - - - N/A - - N/A Mechanical Permits - - - N/A - - N/A Miscellaneous Permits 72,000 72,000 30,867 42.87% 13,613 17,254 126.75% Total Licenses & Permits 3,072,000 3,330,000 727,181 21.84% 901,375 (174,194) -19.33% FINES & PENALTIES 1,465,000 1,615,000 61,307 3.80% 69,625 (8,318) -11.95% INTERGOVERNMENTAL 310,000 310,000 80,566 25.99% 59,675 20,891 35.01% CHARGES FOR SERVICES 31,258,098 31,258,098 8,173,296 26.15% 6,637,428 1,535,869 23.14% SILICON VALLEY POWER TRANSFER 26,170,000 26,170,000 7,160,972 27.36% 6,443,344 717,628 11.14%
USE OF MONEY & PROPERTY
Interest 2,532,000 2,532,000 126,324 4.99% 217,331 (91,007) -41.87% Rent 10,584,266 10,584,266 2,718,503 25.68% 2,508,239 210,264 8.38% Total Use of Money & Property 13,116,266 13,116,266 2,844,827 21.69% 2,725,570 119,257 4.38% MISCELLANEOUS REVENUES 150,000 150,000 1,824,889 1216.59% 153,805 1,671,084 1086.50%
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% 32,390,871 1,311,208 4.05% 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% 5,177,399 (2,807,025) -54.22% Total Other Financing Sources 33,878,344 42,011,179 42,011,179 100.00% 43,839,928 (1,828,750) -4.17%
STADIUM OPERATION
Charges for Services 7,889,147 7,889,147 2,172,678 27.54% 200,196 1,972,482 985.28% Rent and Licensing 752,500 752,500 507,777 67.48% - 507,777 N/A Total Stadium Operation 8,641,647 8,641,647 2,680,455 31.02% 200,196 2,480,259 1238.92% TOTAL GENERAL FUND 272,355,355$ 280,896,190$ 72,933,423$ 25.96% 66,658,150$ 6,275,273$ 9.41% (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 September 30, 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 September 30, 2022, approximately $5.0 million has been collected. Given the timing of payments, the sales tax payments reflected are for the month of July 2022.
Property Tax: Through September, 0.3% 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 September 30, 2022, approximately $1.8 million has been received, which is significantly higher than receipts through the same period last fiscal year of $0.6 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 $0.4 million through September, which is on par with prior year collection levels. Receipts through September 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 been budgeted in the new Building Development Services Fund, which is reflected in the Special Revenue section of this report. Licenses and permits revenue collections are tracking slightly below par with receipts totaling $0.7 million, or 21.8% of the budget of $3.3 million.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue of approximately $61,000 collected in this category through September 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.
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 September 30, 2022, $80,000 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 September 30, 2022, collections totaled approximately $8.2 million or 26.2% of the budget. This reflects a 23% increase compared to last year’s collections through the same period of $6.6 million. This
6 City of Santa Clara
Financial Status Report as of September 30, 2022
increase is a result of higher collections for planning and zoning fees, engineering fees, Fire EMS fees, and Fire CUPA 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 September 30, 2022, $7.2 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 $2.8 million, or 21.7% of the budget. These collections are slightly higher than collections through last fiscal year of $2.7 million.
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through September 30, 2022, collections of $1.8 million are higher than collections through the same period last fiscal year of $0.1 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 September 30, 2022, charges for services collected through the Stadium totaled $2.7 million, which is slightly above 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.
7 City of Santa Clara
Financial Status Report as of September 30, 2022
General Fund Expenditures
As of September 30, 2022, $74.3 million or 26.4% 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 September. Departmental expenditures totaled $60.4 million, or
23.2% of the budget, w hich is slightly below the par level of 25% of the budget . Several cost-control measures that were implemented in FY 2019/ 20 remain in place to generate expenditur e savings.
These measures include a hiring freeze and controls around overti me, as-needed s taff, mark eting, travel, technology and vehicle purchases. With these measures, expenditures are expected to end the year below budget.
Adopted Budget
Amended
Budget
Actual Through
9/30/2022
Percentage
Used
Actual Through
9/30/2021
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 7,514,334$ 7,656,881$ 1,164,971$ 15.21% 920,065$ 244,906$ 26.62% City Council 861,105 862,396 150,004 17.39% 202,831 (52,827) -26.04% City Clerk 2,076,112 2,093,661 554,046 26.46% 306,119 247,927 80.99% City Manager 6,085,321 6,292,428 1,162,661 18.48% 1,195,965 (33,304) -2.78% City Attorney 3,202,735 3,690,974 790,741 21.42% 598,923 191,818 32.03% Human Resources 4,508,710 4,828,451 881,394 18.25% 844,476 36,918 4.37% Finance 19,045,131 20,272,300 4,142,280 20.43% 3,864,022 278,258 7.20% Total General Government 43,293,448 45,697,091 8,846,097 19.36% 7,932,401 913,696 11.52% PUBLIC WORKS 24,021,840 25,083,353 5,532,057 22.05% 5,538,357 (6,300) -0.11% COMMUNITY DEVELOPMENT 5,398,007 5,665,420 1,084,002 19.13% 1,311,009 (227,007) -17.32% PARKS AND RECREATION 21,695,302 22,248,016 5,051,867 22.71% 4,322,067 729,800 16.89%
PUBLIC SAFETY
Fire 62,298,852 65,767,826 17,232,293 26.20% 15,779,040 1,453,253 9.21% Police 84,615,023 84,981,549 20,162,027 23.73% 18,676,179 1,485,848 7.96% Total Public Safety 146,913,875 150,749,375 37,394,320 24.81% 34,455,219 2,939,101 8.53% LIBRARY 11,889,451 12,277,870 2,530,015 20.61% 2,022,068 507,947 25.12% DEPARTMENTAL TOTAL 253,211,923 261,721,125 60,438,358 23.09% 55,581,121 4,857,237 8.74%
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 2,035,243 27.58% 1,308,222 727,021 55.57% TOTAL GENERAL FUND 272,355,355$ 280,896,190$ 74,268,998$ 26.44% 99,345,207$ (25,076,210)$ -25.24% 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 September 30, 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 September 30, 2022, expenditures totaled $1.2 million, or 15.2% of the budget. These expenditures are below the par level of 25% 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 September 30, 2022, actual expenditures totaled approximately $0.8 million, which is within expected levels at 21.4% of the budget. Spending is 32% above the total expenditures through the same time last fiscal year due to higher contractual legal services costs.
City Clerk: Through September, actual expenditures were tracking slightly above budget at $0.6 million or approximately 26.5% of the budget. This reflects an 81% 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 September 30, 2022, expenditures were at 17.4% of budget, which is below par. Compared to the same period through last fiscal year, this reflects a spending decrease of approximately 26%, which is primarily the result of savings due to vacancies within the department.
City Manager: The actual expenditures through September totaled $1.2 million, or 18.5% of the budget, which is below par for this time of the year. Expenditures are 3% lower compared with the spending level through the same period last fiscal year. This decrease reflects lower spending in regular salaries; 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 September, departmental expenditures for the Planning and Housing and Community Services divisions totaled $1.1 million, or 19.1%, which is below the par level of 25%. Expenditures were also well below the spending through the same period last fiscal year due to vacancies within the department as well as lower contractual services spending.
Finance Department: Through September, the Department’s expenditures totaled $4.1 million, or
20.4% of the budget, which is below par. This expenditure level was approximately 7% higher than expenditure levels through the same period last year. This is a result of higher expenditures primarily in the salaries and benefits categories.
Fire Department: As of September 30, 2022, actual expenditures totaled $17.2 million, or 26.2% of the budget, which is slightly above par. These expenditures reflect a 9.2% increase from expenditures through the same period last fiscal year. This increase in spending reflects higher costs in the salaries and benefits as well as contractual services categories. Overtime expenditures are tracking at 47.3% of
9 City of Santa Clara
Financial Status Report as of September 30, 2022
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 September, actual expenditures totaled $2.5 million, or 20.6% of the budget, which is below par, but 25% 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 September, actual expenditures totaled approximately $5.1 million, or 22.7% of the budget, which is slightly below par, but above the prior year actuals of $4.3 million. This is due to the department resuming activities that were previously impacted by COVID-19 restrictions.
Police Department: Expenditures as of September 2022 are tracking at expected levels at $20.2 million, or 23.7% of the budget. This is approximately 8% higher when compared to spending levels through the same period last fiscal year, primarily reflecting higher charges in the 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 $2.0 million through September and are tracking slightly above budgeted levels. This is 55.6% 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 September 30, 2022
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of September 30, 2022. The amended budget reflects carryover encumbrances from fiscal year 2021/22 and budget amendments approved by the City Council through September 2022. Effective July 1, 2021, all Building Division revenues and expenditures are now budgeted and accounted for in the Building Development Services Fund, which is included in the table below. Revenues totaled approximately $5.8 million, while expenditures totaled approximately $4.2 million through the end of September. Overall, both revenues and expenditures are tracking above 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 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 is included in the Budgetary Year-End Report for FY 2021/22.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 9/30/2022 received 9/30/2021 Prior Year Change Housing Authority Fund 280,000$ 280,000$ 25,167$ 8.99% 197,578$ (172,411)$ -87.26% City Affordable Housing Fund 682,000 682,000 100,884 14.79% 136,759 (35,875) -26.23% Housing Successor Fund 350,000 350,000 398,917 113.98% 222,669 176,248 79.15% Housing and Urban Development 1,810,000 1,810,000 398,960 22.04% 1,214,582 (815,622) -67.15% Building Development Services
Fee Fund
14,112,000 14,112,000 4,919,941 34.86% 3,676,564 1,243,377 33.82% TOTAL 17,234,000$ 17,234,000$ 5,843,869$ 33.91% 5,448,152$ 395,717$ 7.26% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 9/30/2022 used 9/30/2021 Prior Year Change Housing Authority Fund 380,363$ 478,326$ 57,597$ 12.04% 36,491$ 21,106$ 57.84% City Affordable Housing Fund 1,685,731 2,794,313 (1,290,070) -46.17% 243,559 (1,533,629) -629.67% Housing Successor Fund 1,242,599 1,374,178 1,773,105 129.03% 288,244 1,484,861 515.14% Housing and Urban Development 2,355,815 3,109,523 568,143 18.27% 1,079,073 (510,930) -47.35% Building Development Services
Fee Fund
13,360,809 15,224,237 3,140,147 20.63% 2,247,776 892,371 39.70% TOTAL 19,025,317$ 22,980,577$ 4,248,922$ 18.49% 3,895,143$ 353,779$ 9.08%
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 September 30, 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 September 2022. As of September 30, 2022, the capital fund revenue totaled $18.1 million. In the Parks and Recreation Capital Fund, $14.7 million has been collected; of that, $14.5 million is Mitigation Fee Act revenue.
REVENUES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/30/2022 Used Parks & Recreation -$ 3,556,622$ 3,556,622$ 14,693,725$ 413.14% Streets & Highways 4,569,005 15,190,594 19,759,599 149,277 0.76% Storm Drain 1,454,000 - 1,454,000 362,806 24.95% Public Buildings - 100,000 100,000 - 0.00% General Gov't - Other - - - - NA Related Santa Clara Developer 2,908,317 - 2,908,317 444,805 15.29% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 - 0.00% Tasman East Specific
Infrastructure Improvement
Fund
- - - 2,413,605 NA TOTAL 9,000,527$ 18,847,216$ 27,847,743$ 18,064,218$ 64.87%
CITY OF SANTA CLARA
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
The table below lists the total amended budget amounts for expenditures in all 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 September 2022. As of September 30, 2022, capital fund expenditures totaled $9.3 million, or 7% of the amended budget.
As part of the adoption of the FY 2022/23 and FY 2023/24 capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2022.
Necessary additional adjustments to the capital carryover amounts are included as part of the Budgetary Year-End Report for FY 2021/22.
The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program (CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.
12 City of Santa Clara
Financial Status Report as of September 30, 2022
EXPENDITURES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/30/2022 Used Parks & Recreation 4,670,520$ 22,437,801$ 27,108,321$ 668,794$ 2.47% Streets & Highways 15,175,469 59,970,079 75,145,548 5,765,216 7.67% Storm Drain 964,596 6,657,501 7,622,097 1,386,128 18.19% Fire 661,766 1,768,679 2,430,445 122,346 5.03% Library 281,831 297,590 579,421 8,708 1.50% Public Buildings 1,189,532 4,061,069 5,250,601 273,213 5.20% General Gov't - Other 1,950,000 7,453,526 9,403,526 526,397 5.60% Related Santa Clara Developer 2,908,317 598,382 3,506,699 559,055 15.94% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 12,022 17.37% Tasman East Specific
Infrastructure Improvement
Fund
2,876,218 - 2,876,218 4,597 0.16% TOTAL 30,747,454$ 103,244,627$ 133,992,081$ 9,326,476$ 6.96%
CITY OF SANTA CLARA
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
EXPENDITURE - OVERVIEW AND COMPARISON BY FUND
13 City of Santa Clara
Financial Status Report as of September 30, 2022
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of September 30, 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 Solid Waste Fund, there are higher expenditures in the garbage collection and disposal categories, compared to last fiscal year.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 9/30/2022 received 9/30/2021 Prior Year Change Electric Utility Fund 615,818,445$ 615,818,445$ 124,963,195$ 20.29% 104,566,267$ 20,396,928$ 19.51% Water Utility Fund 48,358,520 48,358,520 12,097,373 25.02% 10,850,866 1,246,507 11.49% Sewer Utility Fund 40,459,345 40,459,345 8,583,181 21.21% 7,722,796 860,385 11.14% Cemetery Fund 600,000 600,000 194,821 32.47% 191,196 3,625 1.90% Solid Waste Utility Fund 37,245,092 37,245,092 7,056,681 18.95% 6,619,822 436,859 6.60% Water Recycling Fund 5,708,446 5,708,446 1,458,174 25.54% 1,601,782 (143,608) -8.97% TOTAL REVENUE 748,189,848$ 748,189,848$ 154,353,425$ 20.63% 131,552,729$ 22,800,696$ 17.33% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 9/30/2022 Used 9/30/2021 Prior Year Change Electric Utility Fund 603,681,580$ 606,998,843$ 123,309,086$ 20.31% 114,347,053$ 8,962,033$ 7.84% Water Utility Fund 46,797,065 48,478,478 10,029,986 20.69% 7,518,579 2,511,407 33.40% Sewer Utility Fund 30,825,023 31,072,051 7,570,761 24.37% 7,406,202 164,559 2.22% Cemetery Fund 1,539,796 1,545,944 352,678 22.81% 337,054 15,624 4.64% Solid Waste Utility Fund 36,626,118 40,169,992 7,142,932 17.78% 6,150,712 992,220 16.13% Water Recycling Fund 5,729,413 5,739,135 1,532,646 26.71% 1,318,800 213,846 16.22% TOTAL - Operating
Appropriations
725,198,995$ 734,004,443$ 149,938,089$ 20.43% 137,078,400$ 12,859,689$ 9.38% 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.
14 City of Santa Clara
Financial Status Report as of September 30, 2022
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actual revenue through September 2022 totaled approximately $18.9 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 $14.9 million, or 5.3% of the amended budget through September 30, 2022. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2022/23 and FY 2023/24 budget adoption process for those projects that have not yet been completed. Adjustments to the capital carryover amounts based on actual year-end expenditures are included as part of the Budgetary Year-End Report for FY 2021/22.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/30/2022 Used Electric Utility Fund 34,678,377$ 14,907,345$ 49,585,722$ 11,806,803$ 23.81% Street Lighting (1)
- - - 23,455 NA Sewer Utility Fund - - - 7,028,820 NA Solid Waste Utility Fund 250,000 - 250,000 - 0.00%
TOTAL - CIP
Appropriations
34,928,377$ 14,907,345$ 49,835,722$ 18,859,078$ 37.84% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/30/2022 Used Electric Utility Fund 98,730,086$ 118,664,746$ 217,394,832$ 11,499,202$ 5.29% Street Lighting (1)
71,455 4,820,273 4,891,728 27,090 0.55% Water Utility Fund 6,665,000 1,368,212 8,033,212 555,062 6.91% Sewer Utility Fund 20,300,110 25,615,224 45,915,334 2,753,733 6.00% Cemetery Fund 9,225 278,397 287,622 2,306 0 Solid Waste Utility Fund 743,000 148,520 891,520 100,245 11.24% Water Recycling Fund 50,000 - 50,000 - - Convention Center
Capital Fund
2,622,854 2,622,854 - -
TOTAL - CIP
Appropriations
126,568,875$ 153,518,227$ 280,087,102$ 14,937,638$ 5.33% 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
15 City of Santa Clara
Financial Status Report as of September 30, 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.
16 City of Santa Clara
Financial Status Report as of September 30, 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
September 30, 2022
17 City of Santa Clara
Financial Status Report as of September 30, 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 September 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 September 2022 and for fiscal year 2022/23 are shown in the table below.
Department Sep-22
Fiscal Year
2022/23
Year To Date Designated Use
City Manager's Office 25$ 50$ Help Your Neighbor Parks & Recreation - 99 Case Management Parks & Recreation 630 1,225 Roberta Jones Jr. Theatre
Parks & Recreation 20,775 30,600 Wade Brummal
TOTALS 21,430$ 31,974$