_____________________________________________________________________
MONTHLY FINANCIAL STATUS REPORT
December 2022
1 City of Santa Clara
Financial Status Report as of December 31, 2022
This report summarizes the City’s financial performance for the month ended December 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 $284.0 million to reflect various budget amendments approved by the City Council through December 2022.
General Fund revenues are currently tracking to end the year above the budgeted level. Through December, departmental expenditures are tracking 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.2 The Conference Board also forecasts a recession starting in early 2023, with projections for three quarters of negative GDP growth starting in the first quarter of 2023. Their projections call for a relatively brief and mild downturn with the expectation that growth should rebound in 2024 as inflation ebbs further and the Fed begins to loosen monetary policy.3 The Conference Board Consumer Confidence Index decreased in January after gaining ground in December. “Consumers’ assessment of present economic and labor market conditions improved at the start of 2023. However, the Expectations Index retreated in January reflecting their concerns about the economy over the next six months. Consumers were less upbeat about the short-term outlook for jobs. They also expect business conditions to worsen in the near term.”4
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 Economic Forecast for the US Economy (conference-board.org) 4 https://www.conference-board.org/topics/consumer-confidence
2 City of Santa Clara
Financial Status Report as of December 31, 2022
On a national level, the unemployment rate remained fairly flat in January 2023 at 3.4%, compared to
3.5% in December 2022. This rate was well below the record setting high of 14.7% in April 2020, and slightly below the pre-pandemic unemployment rate of 3.5%. In January, the number of unemployed persons stayed at 5.7 million, which is consistent with the pre-pandemic level of 5.7 million.5
In the fourth quarter 2022 advance estimate, the Gross Domestic Product (GDP) increased by 2.9%, following a GDP increase of 3.2% in the third quarter. The GDP decelerated in the fourth quarter compared to the third due to downturns in exports, State and local government spending as well as a slowing in consumer spending.6
5 https://www.bls.gov/news.release/pdf/empsit.pdf
6 https://www.bea.gov/sites/default/files/2023-01/tech4q22_adv.pdf
3 City of Santa Clara
Financial Status Report as of December 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.7
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 remained flat at 4.1% between November and December 2022. This rate is lower compared to the 5.8% rate in December 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 0.6%.8 The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) slightly decreased to 2.1% in December 2022, from a revised 2.4% in November 2022, and is below the December 2021 level of 2.9% and the February 2020 pre-pandemic level of 2.6%.
Between December 2021 and December 2022, employment in this region increased by 47,100 jobs, or
7 UCLA Anderson Forecast, A Tale of Two Scenarios: The California Report, December 2022 8 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-december-2022/
4 City of Santa Clara
Financial Status Report as of December 31, 2022
4.1%.9 The largest increases were in professional and business services (up 12,200 jobs), private educational and health services (up 9,800 jobs), and leisure and hospitality (up by 8,600 jobs).
Staff will continue to closely monitor the economic environment and the City’s financial performance and provide updates through the Monthly Financial Reports.
9 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
5 City of Santa Clara
Financial Status Report as of December 31, 2022
General Fund Revenues
As of December 31, 2022, $97.2 million or 40.7% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $45.0 million have occurred as budgeted.
Revenue collections are tracking to end the year above budget and are higher when compared to collections last fiscal year.
Adopted Budget
Amended
Budget
Actual Through
12/31/2022
Percentage
Received
Actual Through
12/31/2021
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,173,000$ 60,173,000$ 21,401,195$ 35.57% 18,592,585$ 2,808,610$ 15.11% Property Tax 75,261,000 75,261,000 24,964,596 33.17% 19,061,389 5,903,207 30.97% Transient Occupancy Tax 12,600,000 12,600,000 6,270,863 49.77% 2,497,314 3,773,549 151.10% Other Taxes 6,260,000 6,260,000 1,907,136 30.47% 1,714,502 192,634 11.24% Total Taxes 154,294,000 154,294,000 54,543,790 35.35% 41,865,790 12,678,000 30.28%
LICENSES & PERMITS
Business Licenses 900,000 900,000 430,508 47.83% 414,741 15,767 3.80% Fire Operation Permits 2,100,000 2,358,000 957,531 40.61% 930,380 27,151 2.92% Miscellaneous Permits 72,000 72,000 33,136 46.02% 36,200 (3,064) -8.47% Total Licenses & Permits 3,072,000 3,330,000 1,421,175 42.68% 1,381,321 39,854 2.89% FINES & PENALTIES 1,465,000 1,615,000 122,618 7.59% 166,995 (44,377) -26.57% INTERGOVERNMENTAL 310,000 310,000 253,516 81.78% 157,731 95,785 60.73% CHARGES FOR SERVICES 31,258,098 31,258,098 15,834,348 50.66% 14,226,218 1,608,130 11.30% SILICON VALLEY POWER TRANSFER 26,170,000 26,170,000 14,321,943 54.73% 12,886,688 1,435,255 11.14%
USE OF MONEY & PROPERTY
Interest 2,532,000 2,532,000 521,055 20.58% 567,271 (46,216) -8.15% Rent 10,584,266 10,584,266 5,216,896 49.29% 4,811,471 405,425 8.43% Total Use of Money & Property 13,116,266 13,116,266 5,737,951 43.75% 5,378,742 359,209 6.68% MISCELLANEOUS REVENUES 150,000 189,099 1,869,738 988.76% 308,331 1,561,407 506.41%
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 36,719,079 36,719,079 100.00% 32,742,785 3,976,294 12.14% 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 45,028,179 45,028,179 100.00% 44,441,842 586,336 1.32%
STADIUM OPERATION
Charges for Services 7,889,147 7,889,147 2,447,480 31.02% 1,616,734 830,746 51.38% Rent and Licensing 752,500 752,500 629,787 83.69% 39,691 590,096 1486.72% Total Stadium Operation 8,641,647 8,641,647 3,077,267 35.61% 1,656,425 1,420,842 85.78% TOTAL GENERAL FUND 272,355,355$ 283,952,289$ 142,210,525$ 50.08% 122,470,084$ 19,740,441$ 16.12% (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 December 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 December 31, 2022, approximately $21.4 million has been collected. This reflects an increase of $2.8 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 December, 33.2% 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 December 31, 2022, approximately $6.3 million has been received, which is significantly higher than receipts through the same period last fiscal year of $2.5 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 $1.9 million through December, which higher than prior year collection levels. Receipts through December 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 below par with receipts totaling $1.4 million, or 42.7% of the budget of $3.3 million, through December. This collection level is slightly above the prior fiscal year level.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue of approximately $0.1 million collected through December 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.
7 City of Santa Clara
Financial Status Report as of December 31, 2022
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 December 31, 2022, $0.3 million has been received, which is higher than the prior year collection level.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through December 31, 2022, collections are tracking within the budgeted estimate at $15.8 million, or 50.7% of the budget. This reflects an 11% increase compared to last year’s collections through the same period of $14.2 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 December 31, 2022, $14.3 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 $5.7 million, or 43.8% of the budget. These collections are higher than collections through last fiscal year of $5.4 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 December 31, 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 December 31, 2022, charges for services collected through the Stadium totaled $3.1 million, which is below par for this time of year. This is still significantly 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 December 31, 2022
General Fund Expenditures
As of December 31, 2022, $136.1 million or 47.9% of the General Fund operating budget had been expended. This is significantly lower than last fiscal year due to lower budgeted transfers to other funds; last year i ncluded a one-time transfer of the Bu ilding Inspection Reserve to the new Bui lding Development Services Fund as well as h igher transfers to Capital Funds. Overall, expenditures in the General Fund are within budgeted levels through December. Departmental expenditures totaled $119.4 million, or 45% of the budget, which is below the par level of 50% 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 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
12/31/2022
Percentage
Use d
Actual Through
12/31/2021
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 7,514,334$ 9,689,394$ 2,682,366$ 27.68% 2,421,655$ 260,711$ 10.77% City Council 861,105 862,396 313,572 36.36% 407,898 (94,326) -23.12% City Clerk 2,076,112 2,093,661 855,306 40.85% 703,916 151,390 21.51% City Manager 6,085,321 6,292,428 2,140,300 34.01% 2,405,646 (265,346) -11.03% City Attorney 3,202,735 3,690,974 1,536,461 41.63% 1,144,623 391,838 34.23% Human Resources 4,508,710 4,828,451 1,763,387 36.52% 1,750,963 12,424 0.71% Finance 19,045,131 20,272,300 8,327,242 41.08% 7,670,152 657,090 8.57% Total General Government 43,293,448 47,729,604 17,618,634 36.91% 16,504,853 1,113,781 6.75% PUBLIC WORKS 24,021,840 25,092,840 10,800,847 43.04% 10,858,986 (58,140) -0.54% COMMUNITY DEVELOPMENT 5,398,007 5,665,420 2,198,022 38.80% 2,264,899 (66,877) -2.95% PARKS AND RECREATION 21,695,302 22,287,115 10,131,751 45.46% 8,901,614 1,230,137 13.82%
PUBLIC SAFETY
Fire 62,298,852 65,944,826 33,457,347 50.74% 30,530,572 2,926,775 9.59% Police 84,615,023 85,779,549 40,014,699 46.65% 36,552,061 3,462,638 9.47% Total Public Safety 146,913,875 151,724,375 73,472,046 48.42% 67,082,633 6,389,413 9.52% LIBRARY 11,889,451 12,277,870 5,142,282 41.88% 4,181,209 961,073 22.99% DEPARTMENTAL TOTAL 253,211,923 264,777,224 119,363,582 45.08% 109,794,194 9,569,387 8.72%
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 4,969,509 67.34% 4,039,345 930,164 23.03% TOTAL GENERAL FUND 272,355,355$ 283,952,289$ 136,128,487$ 47.94% 156,289,403$ (20,160,916)$ -12.90% 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 December 31, 2022
General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances by department.
Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. As of December 31, 2022, expenditures totaled $2.7 million, or 27.7% of the budget. These expenditures are below the par level of 50% 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 December, actual expenditures totaled approximately $1.5 million, which is below expected levels at 41.6% of the budget. Spending is 34% 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 December, actual expenditures were tracking below budget at $0.9 million or approximately 40.8% of the budget. This reflects a 25% increase in spending compared to prior year spend levels. This is a result of higher salaries and benefits costs in addition to one-time special election and Granicus costs that are paid every other year.
City Council: Through December, expenditures were at 36.4% of budget, which is below par.
Compared to the same period through last fiscal year, this reflects a spending decrease of approximately 23%, which is primarily the result of savings due to vacancies within the department.
City Manager: Expenditures through December totaled $2.1 million, or 34% of the budget, which is below par for this time of the year. Expenditures are also 11% 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 December, departmental expenditures for the Planning and Housing and Community Services divisions totaled $2.2 million, or 38.8% of budget, which is below the par level of 50%. Expenditures were slightly below the spending through the same period last fiscal year due to lower non-personnel expenditures.
Finance Department: Through December, the Department’s expenditures totaled $8.3 million, or
41.1% of the budget, which is below par. This expenditure level was approximately 8.6% 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 December 31, 2022, expenditures totaled $33.5 million, or 50.7% of the budget, which is at par. These expenditures reflect a 10% 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 December 31, 2022
as-needed, contractual services and capital outlay categories. Overtime expenditures are tracking at
87.7% of the budget, which is well 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 December, actual expenditures totaled $5.1 million, or 42% of the budget, which is below par, but nearly 23% 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 December, actual expenditures totaled approximately $10.1 million, or 45.5% of the budget, which is below par, but above the prior year actuals of $8.9 million. This is due to the department resuming activities that were previously impacted by COVID-19 restrictions.
Police Department: Expenditures through December are tracking at expected levels at $40.0 million, or 46.7% of the budget. This is approximately 9.5% 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 approximately $5.0 million through December and are tracking above budgeted levels at 67.3%. This is 23% 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 December 31, 2022
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of December 31, 2022. The amended budget reflects carryover encumbrances from fiscal year 2021/22 and budget amendments approved by the City Council through December 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 $12.9 million, or 47.7% of budget, while expenditures totaled $12.5 million, or 35.7% of budget through the end of December. Overall, revenues and expenditures are tracking below par of 50%. 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.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 12/31/2022 received 12/31/2021 Prior Year Change Housing Authority Fund 280,000$ 252,495$ 41,515$ 16.44% 220,990$ (179,475)$ -81.21% City Affordable Housing Fund 682,000 7,162,700 207,347 2.89% 1,027,194 (819,847) -79.81% Housing Successor Fund 350,000 1,306,326 447,082 34.22% 374,483 72,599 19.39% Housing and Urban Development 1,810,000 3,924,461 647,100 16.49% 1,331,527 (684,427) -51.40% Building Development Services Fee
Fund
14,112,000 14,464,458 11,578,359 80.05% 7,817,065 3,761,294 48.12% TOTAL 17,234,000$ 27,110,440$ 12,921,403$ 47.66% 10,771,259$ 2,150,144$ 19.96% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 12/31/2022 use d 12/31/2021 Prior Year Change Housing Authority Fund 380,363$ 559,503$ 109,233$ 19.52% 61,853$ 47,380$ 76.60% City Affordable Housing Fund 1,685,731 5,499,145 (363,050) -6.60% 485,686 (848,736) -174.75% Housing Successor Fund 1,242,599 6,049,148 5,320,890 87.96% 391,199 4,929,691 1260.15% Housing and Urban Development 2,355,815 5,199,984 987,424 18.99% 1,440,356 (452,932) -31.45% Building Development Services Fee
Fund
13,360,809 17,682,237 6,444,779 36.45% 5,011,011 1,433,768 28.61% TOTAL 19,025,317$ 34,990,017$ 12,499,276$ 35.72% 7,390,105$ 5,109,171$ 69.14%
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 December 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 December 2022. As of December 31, 2022, the capital fund revenue totaled $31.5 million. In the Parks and Recreation Capital Fund, $25.6 million has been collected, which includes $25.2 million in 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 December 2022. As of December 31, 2022, capital fund expenditures totaled $18.4 million, or 13.1% of the amended budget.
As part of the adoption of the FY 2022/23 and FY 2023/24 capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2022.
Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2021/22 approved on December 6, 2022. These adjustments are reflected in the table below.
The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program REVENUES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 12/31/2022 Use d Parks & Recreation 1,075,000$ 3,301,620$ 4,376,620$ 25,611,393$ 585.19% Streets & Highways 4,594,003 15,921,680 20,515,683 1,873,323 9.13% Storm Drain 1,454,000 - 1,454,000 725,879 49.92% Public Buildings - 100,000 100,000 - 0.00% Related Santa Clara Developer 2,908,317 1,118,024 4,026,341 643,021 15.97% 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 12,514,130$ 20,441,324$ 32,955,454$ 31,467,927$ 95.49%
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 December 31, 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 12/31/2022 Use d Parks & Recreation 8,316,782$ 20,913,971$ 29,230,753$ 1,920,233$ 6.57% Streets & Highways 24,525,308 53,175,624 77,700,932 9,514,320 12.24% Storm Drain 5,181,209 2,745,531 7,926,740 2,611,141 32.94% Fire 1,506,478 395,077 1,901,555 196,651 10.34% Library 413,111 35,747 448,858 26,535 5.91% Public Buildings 2,859,686 2,439,492 5,299,178 431,884 8.15% General Gov't - Other 3,687,314 6,158,460 9,845,774 1,109,274 11.27% City Affordable Housing Capital - 1,600,000 1,600,000 - Related Santa Clara Developer 3,506,699 - 3,506,699 1,171,581 33.41% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 30,056 43.43% Tasman East Specific
Infrastructure Improvement
Fund
3,221,395 - 3,221,395 1,434,638 44.53% TOTAL 53,287,187$ 87,463,902$ 140,751,089$ 18,446,313$ 13.11%
EXPENDITURE - OVERVIEW AND COMPARISON BY FUND
CITY OF SANTA CLARA
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
14 City of Santa Clara
Financial Status Report as of December 31, 2022
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of December 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 Recycling Fund as a result of higher spending in the resources category.
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 12/31/2022 received 12/31/2021 Prior Year Change Electric Utility Fund 615,818,445$ 629,425,236$ 277,321,538$ 44.06% 245,381,152$ 31,940,386$ 13.02% Water Utility Fund 48,358,520 48,358,520 24,538,107 50.74% 23,625,102 913,005 3.86% Sewer Utility Fund 40,459,345 40,459,345 19,318,094 47.75% 18,569,928 748,166 4.03% Cemetery Fund 600,000 600,000 295,966 49.33% 331,620 (35,654) -10.75% Solid Waste Utility Fund 37,245,092 37,245,092 16,160,274 43.39% 15,139,208 1,021,066 6.74% Water Recycling Fund 5,708,446 5,708,446 3,322,223 58.20% 3,269,040 53,183 1.63% TOTAL REVENUE 748,189,848$ 761,796,639$ 340,956,202$ 44.76% 306,316,050$ 34,640,152$ 11.31% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 12/31/2022 Use d 12/31/2021 Prior Year Change Electric Utility Fund 603,681,580$ 606,426,798$ 259,330,458$ 42.76% 244,227,199$ 15,103,259$ 6.18% Water Utility Fund 46,797,065 48,768,438 22,803,607 46.76% 21,105,473 1,698,134 8.05% Sewer Utility Fund 30,825,023 32,220,466 15,015,739 46.60% 14,343,157 672,582 4.69% Cemetery Fund 1,539,796 1,545,944 727,474 47.06% 714,955 12,519 1.75% Solid Waste Utility Fund 36,626,118 40,169,992 14,293,681 35.58% 14,138,060 155,621 1.10% Water Recycling Fund 5,729,413 5,739,135 3,601,549 62.75% 2,982,662 618,887 20.75% TOTAL - Operating
Appropriations
725,198,995$ 734,870,773$ 315,772,508$ 42.97% 297,511,506$ 18,261,002$ 6.14% PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2022/23
CITY OF SANTA CLARA
ENTERPRISE OPERATING FUNDS
REVENUES AND EXPENSES - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2022/23 PRIOR YEAR REVENUE COMPARISON
15 City of Santa Clara
Financial Status Report as of December 31, 2022
A summary of revenue and expenses in the Enterprise Capital Improvement Funds are detailed in the tables below. Actual revenue through December 31, 2022 totaled $21.8 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 $24.0 million, or 8.8% of the amended budget. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2022/23 and FY 2023/24 budget adoption process for those projects that have not yet been completed. Adjustments to the capital carryover amounts based on actual year-end expenditures were approved as part of the Budgetary Year-End Report for FY 2021/22 on December 6, 2022 and are reflected below.
(1) Street Lighting fund is part of Electric Capital Improvement Funds Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 12/31/2022 Use d Electric Utility Fund 37,850,877$ 14,554,461$ 52,405,338$ 13,048,564$ 24.90% Street Lighting (1) - - - 35,493 N/A Sewer Utility Fund - - - 8,675,392 N/A Solid Waste Utility Fund 250,000 65,000 315,000 4,333 1.38%
TOTAL - CIP
Appropriations
38,100,877$ 14,619,461$ 52,720,338$ 21,763,782$ 41.28% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 12/31/2022 Use d Electric Utility Fund 130,291,189$ 80,191,903$ 210,483,092$ 18,568,951$ 8.82% Street Lighting (1) 239,338 5,637,312 5,876,650 58,857 1.00% Water Utility Fund 8,012,986 - 8,012,986 1,228,137 15.33% Sewer Utility Fund 22,399,877 23,316,657 45,716,534 3,821,650 8.36% Cemetery Fund 53,642 233,980 287,622 17,092 5.94% Solid Waste Utility Fund 891,521 4,488 896,009 284,758 31.78% Water Recycling Fund 29,774 - 29,774 - - Convention Center
Capital Fund
- 2,691,883 2,691,883 - -
TOTAL - CIP
Appropriations
161,918,327$ 112,076,223$ 273,994,550$ 23,979,445$ 8.75% 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 December 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 December 31, 2022
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 40,843,152$
Capital Projects Reserve 11,959,656
Land Sale Reserve 12,882,822
Technology Fee Reserve 1,925,791
Electric Rate Stabilization Fund Reserve 48,776,613$
Electric Operations and Maintenance Reserve 118,765,556 Replacement & Improvement 303,090$
TOTALS 67,611,421$ 167,542,169$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
December 31, 2022
18 City of Santa Clara
Financial Status Report as of December 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 December 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 December 2022 and for fiscal year 2022/23 are shown in the table below.
Department Dec-22
Fis cal Year
2022/23
Year To Date Designated Use
City Manager's Office -$ 50$ Help Your Neighbor Parks & Recreation 1,000 1,249 Case Management Parks & Recreation - 1,748 Roberta Jones Jr. Theatre Parks & Recreation - 30,600 Wade Brummal TOTALS 1,000$ 33,647$