_____________________________________________________________________
MONTHLY FINANCIAL STATUS REPORT
November 2022
City of
Santa Clara
The Center of What 's Possible
1 City of Santa Clara
Financial Status Report as of November 30, 2022
This report summarizes the City’s financial performance for the month ended November 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 $281.6 million to reflect various budget amendments approved by the City Council through November 2022.
General Fund revenues are currently tracking within estimated levels. Through November, departmental 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 The U.S.
Chamber of Commerce projects a mild but short recession in 2023. The consensus of its Chief Economists Committee is that “the U.S. will experience a mild but short recession in the middle of 2023 caused by consumer and business spending falling because of rising interest rates. Further contributing to the downturn would be consumers finally exhausting historic saving built up during the COVID-19 pandemic, meaning they would no longer have that source of money to keep spending at a pace with inflation”.2 The Conference Board Consumer Confidence Index increased in December after losing ground in both October and November. “Inflation expectations retreated in December to their lowest level since September 2021, with recent declines in gas prices a major impetus. Vacation intentions improved but plans to purchase homes and big-ticket appliances cooled further. This shift in consumers’ preference from big-ticket items to services will continue in 2023, as will headwinds from inflation and interest rate hikes.”3
1 UCLA Anderson Forecast, December 2022, Goldilocks or Bust: Will the Economy by “Just Right” or Will We have a Recession?
2 What to Expect for the Economy in 2023 | U.S. Chamber of Commerce (uschamber.com) 3 https://www.conference-board.org/topics/consumer-confidence
2 City of Santa Clara
Financial Status Report as of November 30, 2022
On a national level, the unemployment rate decreased slightly to 3.5% between November 2022 and December 2022. This rate was well below the record setting high of 14.7% in April 2020, and equal to the pre-pandemic unemployment rate of 3.5%. In December, the number of unemployed persons fell to
5.7 million from 6.0 million in November. This unemployment figure has reached the pre-pandemic level of 5.7 million.4
In the third quarter 2022 third estimate, the Gross Domestic Product (GDP) increased by 3.2%, following a GDP decrease of 0.6% in the second quarter. The increase in the third quarter primarily reflected increases in exports, consumer spending, and State and local government spending.5
4 https://www.bls.gov/news.release/pdf/empsit.pdf
5 https://www.bea.gov/sites/default/files/2022-12/tech3q22_3rd.pdf Chart 1. Unemployment rate, seasonally adjusted ,
December 2019- December 2.022
Perceni
16.0 14.0
12.0 100
8.0 6.0
Chart 2. Nonfarm payroll employment, seasonally adjusted , December 2019 - December 2022
Th.ousands
4.0 ~,-----------' -"""94.e;~,;..~ ...
160 ,000
155 ,000
150 ,000
145 ,000
140 ,000
135 ,000
130 ,000
125 ,000 2.0
Dec-1, 9 Jun-20 Dec--20 Jun-21 Dec-21 Jun-22 Dec-22 Dec--19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Real GDP: Percent change from preceding quarter
40 30
20 10
0 -10
-20
-30
-40
Q4 Ql
2018
Q2 Q3
2019
U.S. Bureau of Econom ic Analysis
Q4 Ql Q2 Q3 Q4 Ql
2020
Q2 Q3
2021
Q4 Ql Q2 Q3
2022
Seasonally adjusted annual rates
3 City of Santa Clara
Financial Status Report as of November 30, 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 $330 billion by 2024.
The December 2022 UCLA Forecast for California includes soft-landing and recession scenarios given the current economic uncertainly. In both scenarios, a milder impact is expected for the California economy. In the soft-landing scenario, California continues to grow at a faster rate than the US, led by more construction, ample state government rainy day funds, and increased demand for defense goods as well as labor saving equipment and software. In the recession scenario, the California economy declines but by less than the US.6
The State and local employment levels remain strong. After the State’s largest increase in the unemployment rate in April 2020, the California unemployment rate increased slightly from 4.0% in October 2022 to 4.1% in November 2022. The November 2022 rate is lower compared to the 5.8% rate in November 2021. California has now regained all of the 2.76 million nonfarm jobs lost due to COVID- 19 in March and April 2020, and has outpaced the country’s job growth as a whole by 0.7%.7 The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) slightly increased to 2.4% in November 2022, from a revised 2.2% in October 2022, but is below the November 2021 level of 3.2% and the February 2020 pre-pandemic level of 2.6%. Between
6 UCLA Anderson Forecast, A Tale of Two Scenarios: The California Report, December 2022 7 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-november-2022/ Real GOP Levels, US$ Trillions, Chained 2012 Prices, Seasonally Adjusted Annual Rates US$ Trillions
21.0 20 .9
20.8 20.7
20.6 20.5
20.4 20.3
20.2 20 .1
20 .0
19.!12
F o r ecast ➔
19.9<1
20.90 0 .0 =----------- +------------ -'-----------Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024
Source_- UCLA Anderson Forecast and US. Bureau of Economic Analysis No-Recession
Recession
4 City of Santa Clara
Financial Status Report as of November 30, 2022
November 2021 and November 2022, employment in this region increased by 54,100 jobs, or 4.7%.8 The largest increases were in professional and business services (up 13,300 jobs), leisure and hospitality (up 11,400 jobs), and private educational and health services (up 10,600 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://labormarketinfo.edd.ca.gov/ file/lfmonth/sjos$pds.pdf
5 City of Santa Clara
Financial Status Report as of November 30, 2022
General Fund Revenues
As of November 30, 2022, $73.3 million or 30.7% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $42.6 million have occurred as budgeted.
Revenue collections are tracking within estimated levels and are higher when compared to collections last fiscal year.
Adopted Budget
Amended
Budget
Actual Through
11/30/2022
Percentage
Received
Actual Through
11/30/2021
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,173,000$ 60,173,000$ 16,324,246$ 27.13% 14,140,585$ 2,183,661$ 15.44% Property Tax 75,261,000 75,261,000 13,693,270 18.19% 10,626,422 3,066,848 28.86% Transient Occupancy Tax 12,600,000 12,600,000 5,561,694 44.14% 2,225,952 3,335,742 149.86% Other Taxes 6,260,000 6,260,000 1,788,958 28.58% 1,471,956 317,002 21.54% Total Taxes 154,294,000 154,294,000 37,368,168 24.22% 28,464,915 8,903,253 31.28%
LICENSES & PERMITS
Business Licenses 900,000 900,000 357,795 39.76% 366,699 (8,904) -2.43% Fire Operation Permits 2,100,000 2,358,000 792,866 33.62% 838,859 (45,993) -5.48% Miscellaneous Permits 72,000 72,000 32,532 45.18% 27,309 5,223 19.12% Total Licenses & Permits 3,072,000 3,330,000 1,183,193 35.53% 1,232,867 (49,674) -4.03% FINES & PENALTIES 1,465,000 1,615,000 105,604 6.54% 141,737 (36,133) -25.49% INTERGOVERNMENTAL 310,000 310,000 170,066 54.86% 133,649 36,417 27.25% CHARGES FOR SERVICES 31,258,098 31,258,098 13,147,444 42.06% 11,849,960 1,297,484 10.95% SILICON VALLEY POWER TRANSFER 26,170,000 26,170,000 11,934,953 45.61% 10,738,907 1,196,046 11.14%
USE OF MONEY & PROPERTY
Interest 2,532,000 2,532,000 378,009 14.93% 214,768 163,241 76.01% Rent 10,584,266 10,584,266 4,307,466 40.70% 3,928,228 379,238 9.65% Total Use of Money & Property 13,116,266 13,116,266 4,685,475 35.72% 4,142,996 542,479 13.09% MISCELLANEOUS REVENUES 150,000 189,099 1,859,668 983.44% 300,227 1,559,441 519.42%
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 34,325,079 34,325,079 100.00% 32,456,888 1,868,191 5.76% 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 42,634,179 42,634,179 100.00% 44,155,945 (1,521,767) -3.45%
STADIUM OPERATION
Charges for Services 7,889,147 7,889,147 2,293,120 29.07% 1,356,594 936,526 69.04% Rent and Licensing 752,500 752,500 556,621 73.97% 161,511 395,110 244.63% Total Stadium Operation 8,641,647 8,641,647 2,849,741 32.98% 1,518,105 1,331,636 87.72% TOTAL GENERAL FUND 272,355,355$ 281,558,289$ 115,938,491$ 41.18% 102,679,309$ 13,259,182$ 12.91% (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 November 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 November 30, 2022, approximately $16.3 million has been collected. This reflects an increase of $2.2 million when compared to collections through the same period last fiscal year. After a decline of 8.6% percent in the second quarter of calendar year 2022, sales tax receipts increased 15.7% in the third quarter when compared to the same quarter last year. The third quarter 2022 experienced growth in all sectors as follows: Transportation (up 31.2%), Food Products (up 20.7%), Construction (up 17.3%), General Retail (up 10.0%), and Business to Business (up 3.5%). Growth of 3% is needed in the remaining three quarters of Fiscal Year 2022/23 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 November, 18.2% of the property tax budgeted estimate has been received.
The majority of property tax revenue is collected in February and April each year. Based on 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 November 30, 2022, approximately $5.6 million has been received, which is significantly higher than receipts through the same period last fiscal year of $2.2 million. As businesses continue to recover from the COVID-19 impacts, it is anticipated that TOT will increase compared to last fiscal year. Based on current collection trends, TOT receipts are expected to exceed the budgeted estimate of $12.6 million.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $1.8 million through November, which higher than prior year collection levels. Receipts through November reflect higher collections in the franchise tax category that is partially offset by lower receipts in the documentary transfer tax category. Based on current collection trends, Other Taxes collections are projected to exceed the budgeted estimate of $6.3 million.
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 $1.2 million, or 35.5% of the budget of $3.3 million.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue of approximately $0.1 million collected in this category through November 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.
7 City of Santa Clara
Financial Status Report as of November 30, 2022
Through November 30, 2022, $0.2 million has been received, which is consistent with the prior year collection level. However, this category reflects a drop when compared to last month’s financial report as a result of a reclassification of a $1.5 million settlement that has been more appropriately recorded in the Streets and Highways Capital Fund. The settlement amount is to be used for a new capital improvement program project which is included in the recommended budget actions in Attachment 3.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through November 30, 2022, collections are tracking within budget at $13.1 million, or 42% of the budget. This reflects an 11% increase compared to last year’s collections through the same period of $11.8 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 November 30, 2022, $11.9 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 $4.7 million, or 35.7% of the budget. These collections are higher than collections through last fiscal year of $4.1 million. Collections are expected to meet or exceed the budgeted estimate of $13.1 million.
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through November 30, 2022, collections of $1.9 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 November 30, 2022, charges for services collected through the Stadium totaled $2.8 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 November 30, 2022
General Fund Expenditures
As of November 30, 2022, $116.5 million or 41.4% 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 Build ing Inspection Reserve to the new Bui lding Development Services Fund as well as higher transfers to Capital Funds. Overall, expenditures in the General Fund are within budgeted levels through November. Departmental expenditures totaled $100.6 million, or
38.3% of the budget, w hich i s below the par level of 41.7% of the budget . Several co st-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 o vertime, as-needed staff, 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
11/30/2022
Percentage
Use d
Actual Through
11/30/2021
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 7,514,334$ 7,647,394$ 2,013,239$ 26.33% 1,313,812$ 699,427$ 53.24% City Council 861,105 862,396 266,677 30.92% 336,175 (69,498) -20.67% City Clerk 2,076,112 2,093,661 757,746 36.19% 606,680 151,066 24.90% City Manager 6,085,321 6,292,428 1,821,516 28.95% 1,999,737 (178,221) -8.91% City Attorney 3,202,735 3,690,974 1,368,946 37.09% 976,791 392,155 40.15% Human Resources 4,508,710 4,828,451 1,468,880 30.42% 1,437,548 31,332 2.18% Finance 19,045,131 20,272,300 7,016,819 34.61% 6,296,892 719,927 11.43% Total General Government 43,293,448 45,687,604 14,713,823 32.21% 12,967,635 1,746,188 13.47% PUBLIC WORKS 24,021,840 25,092,840 9,133,284 36.40% 9,061,825 71,459 0.79% COMMUNITY DEVELOPMENT 5,398,007 5,665,420 1,847,449 32.61% 1,896,401 (48,952) -2.58% PARKS AND RECREATION 21,695,302 22,287,115 8,681,141 38.95% 7,339,086 1,342,055 18.29%
PUBLIC SAFETY
Fire 62,298,852 65,944,826 28,080,867 42.58% 25,794,026 2,286,841 8.87% Police 84,615,023 85,427,549 33,810,147 39.58% 30,830,143 2,980,004 9.67% Total Public Safety 146,913,875 151,372,375 61,891,014 40.89% 56,624,169 5,266,845 9.30% LIBRARY 11,889,451 12,277,870 4,343,709 35.38% 3,424,403 919,306 26.85% DEPARTMENTAL TOTAL 253,211,923 262,383,224 100,610,420 38.34% 91,313,519 9,296,901 10.18%
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 4,057,640 54.98% 2,871,639 1,186,001 41.30% TOTAL GENERAL FUND 272,355,355$ 281,558,289$ 116,463,457$ 41.36% 136,641,022$ (20,177,565)$ -14.77% 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 November 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 November 30, 2022, expenditures totaled $2.0 million, or 26.3% of the budget. These expenditures are below the par level of 41.7% but are higher than the prior year levels, primarily as a result of higher expenditures in the contractual services as well as salaries and benefits categories.
City Attorney: Through November, actual expenditures totaled approximately $1.4 million, which is below expected levels at 37.1% 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 November, actual expenditures were tracking below budget at $0.8 million or approximately 36.2% of the budget. This reflects a 25% 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 November, expenditures were at 30.9% of budget, which is below par.
Compared to the same period through last fiscal year, this reflects a spending decrease of approximately 21%, which is primarily the result of savings due to vacancies within the department.
City Manager: Expenditures through November totaled $1.8 million, or 29% of the budget, which is below par for this time of the year. Expenditures are also 9% lower compared with the spending level through the same period last fiscal year. This decrease reflects lower spending in contractual services and 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 November, departmental expenditures for the Planning and Housing and Community Services divisions totaled $1.8 million, or 32.6%, which is below the par level of 41.7%. Expenditures were slightly below the spending through the same period last fiscal year due to higher spending in the salaries and benefits categories.
Finance Department: Through November, the Department’s expenditures totaled $7.0 million, or
34.6% of the budget, which is below par. This expenditure level was approximately 11.4% 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: Through November, expenditures totaled $28.1 million, or 42.6% of the budget, which is slightly above par. These expenditures reflect a 9% increase from expenditures through the same period last fiscal year. This increase in spending reflects higher costs in the salaries and benefits
10 City of Santa Clara
Financial Status Report as of November 30, 2022
as well as contractual services and capital outlay categories. Overtime expenditures are tracking at
70.6% 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. In addition, overtime costs are higher due to mutual aid efforts that will be reimbursed. It is currently anticipated that the City will receive approximately $0.5 million in mutual aid funds, and a budget amendment will be brought forward in a future Monthly Financial Report to recognize and appropriate those funds once received.
Library Department: Through November, actual expenditures totaled $4.3 million, or 35.4% of the budget, which is below par, but nearly 27% 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 November, actual expenditures totaled approximately $8.7 million, or 39% of the budget, which is slightly below par, but above the prior year actuals of $7.3 million. This is due to the department resuming activities that were previously impacted by COVID-19 restrictions.
Police Department: Expenditures through November are tracking at expected levels at $33.8 million, or 39.6% of the budget. This is approximately 9.7% 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 $4.1 million through November and are tracking above budgeted levels at 55%. This is 41.3% 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 November 30, 2022
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of November 30, 2022. The amended budget reflects carryover encumbrances from fiscal year 2021/22 and budget amendments approved by the City Council through November 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 $10.2 million (59.4% of budget), while expenditures totaled $7.9 million (30.3% of budget) through the end of November. Overall, revenues are tracking above par, while expenditures are tracking below par of 41.7%. 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 the December monthly financial report.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 11/30/2022 received 11/30/2021 Prior Year Change Housing Authority Fund 280,000$ 280,000$ 38,086$ 13.60% 214,539$ (176,453)$ -82.25% City Affordable Housing Fund 682,000 682,000 197,051 28.89% 666,865 (469,814) -70.45% Housing Successor Fund 350,000 350,000 436,471 124.71% 332,982 103,489 31.08% Housing and Urban Development 1,810,000 1,810,000 423,977 23.42% 1,318,190 (894,213) -67.84% Building Development Services Fee
Fund
14,112,000 14,112,000 9,135,817 64.74% 6,096,547 3,039,270 49.85% TOTAL 17,234,000$ 17,234,000$ 10,231,402$ 59.37% 8,629,123$ 1,602,279$ 18.57% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 11/30/2022 use d 11/30/2021 Prior Year Change Housing Authority Fund 380,363$ 478,326$ 72,360$ 15.13% 55,287$ 17,073$ 30.88% City Affordable Housing Fund 1,685,731 5,794,313 (1,165,828) -20.12% 443,835 (1,609,663) -362.67% Housing Successor Fund 1,242,599 1,374,178 2,590,456 188.51% 343,226 2,247,230 654.74% Housing and Urban Development 2,355,815 3,109,523 883,095 28.40% 1,333,229 (450,134) -33.76% Building Development Services Fee
Fund
13,360,809 15,224,237 5,488,870 36.05% 4,183,991 1,304,879 31.19% TOTAL 19,025,317$ 25,980,577$ 7,868,953$ 30.29% 6,359,568$ 1,509,385$ 23.73%
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 November 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 November 2022. As of November 30, 2022, the capital fund revenue totaled $26.2 million. In the Parks and Recreation Capital Fund, $20.6 million has been collected; of that, $20.3 million is Mitigation Fee Act revenue.
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 November 2022. As of November 30, 2022, capital fund expenditures totaled $15.6 million, or 11.6% of the amended budget.
As part of the adoption of the FY 2022/23 and FY 2023/24 capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2022.
Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2021/22 approved on December 6, 2022. These adjustments will be reflected in the December monthly financial report.
The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program REVENUES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2022 Use d Parks & Recreation -$ 3,556,622$ 3,556,622$ 20,634,698$ 580.18% Streets & Highways 4,594,005 15,190,594 19,784,599 1,871,669 9.46% Storm Drain 1,454,000 - 1,454,000 603,342 41.50% Public Buildings - 100,000 100,000 - 0.00% Related Santa Clara Developer 2,908,317 - 2,908,317 643,021 22.11% 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$ 26,172,231$ 86.42%
CITY OF SANTA CLARA
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
13 City of Santa Clara
Financial Status Report as of November 30, 2022
(CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.
EXPENDITURES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2022 Use d Parks & Recreation 4,670,520$ 22,437,801$ 27,108,321$ 1,400,692$ 5.17% Streets & Highways 15,200,469 59,970,079 75,170,548 9,241,592 12.29% Storm Drain 964,596 6,657,501 7,622,097 2,587,622 33.95% Fire 661,766 1,768,679 2,430,445 136,767 5.63% Library 281,831 297,590 579,421 25,799 4.45% Public Buildings 1,189,532 4,061,069 5,250,601 427,185 8.14% General Gov't - Other 2,000,970 7,453,526 9,454,496 736,408 7.79% Related Santa Clara Developer 2,908,317 598,382 3,506,699 1,051,692 29.99% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 25,833 37.33% Tasman East Specific
Infrastructure Improvement
Fund
3,221,395 - 3,221,395 10,344 0.32% TOTAL 31,168,601$ 103,244,627$ 134,413,228$ 15,643,934$ 11.64%
EXPENDITURE - OVERVIEW AND COMPARISON BY FUND
CITY OF SANTA CLARA
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
14 City of Santa Clara
Financial Status Report as of November 30, 2022
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of November 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 Recycling Fund as a result of higher spending in the resources category. In the Solid Waste Utility Fund, there are higher expenditures in the garbage collection, disposal and recycling category, compared to last fiscal year.
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.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 11/30/2022 received 11/30/2021 Prior Year Change Electric Utility Fund 615,818,445$ 615,818,445$ 224,243,664$ 36.41% 195,042,240$ 29,201,424$ 14.97% Water Utility Fund 48,358,520 48,358,520 20,768,305 42.95% 19,859,163 909,142 4.58% Sewer Utility Fund 40,459,345 40,459,345 15,920,197 39.35% 15,070,015 850,182 5.64% Cemetery Fund 600,000 600,000 252,666 42.11% 301,639 (48,973) -16.24% Solid Waste Utility Fund 37,245,092 37,245,092 13,188,294 35.41% 12,303,397 884,897 7.19% Water Recycling Fund 5,708,446 5,708,446 2,875,608 50.37% 2,839,755 35,853 1.26% TOTAL REVENUE 748,189,848$ 748,189,848$ 277,248,734$ 37.06% 245,416,209$ 31,832,525$ 12.97% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 11/30/2022 Use d 11/30/2021 Prior Year Change Electric Utility Fund 603,681,580$ 608,689,343$ 224,445,731$ 36.87% 198,844,708$ 25,601,023$ 12.87% Water Utility Fund 46,797,065 48,478,478 18,937,361 39.06% 17,485,087 1,452,274 8.31% Sewer Utility Fund 30,825,023 31,072,051 13,908,764 44.76% 13,495,385 413,379 3.06% Cemetery Fund 1,539,796 1,545,944 599,983 38.81% 583,538 16,445 2.82% Solid Waste Utility Fund 36,626,118 40,169,992 12,457,728 31.01% 11,120,798 1,336,930 12.02% Water Recycling Fund 5,729,413 5,739,135 3,534,465 61.59% 2,912,235 622,230 21.37% TOTAL - Operating
Appropriations
725,198,995$ 735,694,943$ 273,884,032$ 37.23% 244,441,751$ 29,442,281$ 12.04%
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
15 City of Santa Clara
Financial Status Report as of November 30, 2022
A summary of revenue and expenses in the Enterprise Capital Improvement Funds are detailed in the tables below. Actual revenue through November 2022 totaled $20.0 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 $22.0 million, or 7.8% of the amended budget. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2022/23 and FY 2023/24 budget adoption process for those projects that have not yet been completed. Adjustments to the capital carryover amounts based on actual year-end expenditures were approved as part of the Budgetary Year-End Report for FY 2021/22 on December 6, 2022 and will be reflected in the December monthly financial report.
(1) Street Lighting fund is part of Electric Capital Improvement Funds Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2022 Use d Electric Utility Fund 37,850,877$ 14,907,345$ 52,758,222$ 12,554,856$ 23.80% Street Lighting (1) - - - 23,455 N/A Sewer Utility Fund - - - 7,413,271 N/A Solid Waste Utility Fund 250,000 - 250,000 4,333 1.73%
TOTAL - CIP
Appropriations
38,100,877$ 14,907,345$ 53,008,222$ 19,995,915$ 37.72% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2022 Use d Electric Utility Fund 101,874,226$ 118,664,746$ 220,538,972$ 17,049,795$ 7.73% Street Lighting (1) 71,455 4,820,273 4,891,728 48,109 0.98% Water Utility Fund 6,665,000 1,368,212 8,033,212 959,253 11.94% Sewer Utility Fund 20,300,110 25,615,224 45,915,334 3,652,962 7.96% Cemetery Fund 9,225 278,397 287,622 16,323 0 Solid Waste Utility Fund 743,000 148,520 891,520 220,424 24.72% Water Recycling Fund 50,000 - 50,000 - - Convention Center
Capital Fund
- 2,622,854 2,622,854 35,884 0
TOTAL - CIP
Appropriations
129,713,015$ 153,518,227$ 283,231,242$ 21,982,750$ 7.76% 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
16 City of Santa Clara
Financial Status Report as of November 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.
17 City of Santa Clara
Financial Status Report as of November 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 8,708,023
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 56,128,048$ 157,736,368$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
November 30, 2022
18 City of Santa Clara
Financial Status Report as of November 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 November 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 November 2022 and for fiscal year 2022/23 are shown in the table below.
Department Nov-22
Fis cal Year
2022/23
Year To Date Designated Use
City Manager's Office -$ 50$ Help Your Neighbor Parks & Recreation 150 249 Case Management Parks & Recreation 498 1,748 Roberta Jones Jr. Theatre Parks & Recreation - 30,600 Wade Brummal TOTALS 648$ 32,647$