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MONTHLY FINANCIAL STATUS REPORT
January 2023
2 City of Santa Clara
Financial Status Report as of January 31, 2023
This report summarizes the City’s financial performance for the month ended January 31, 2023.
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 January 2023.
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 This uncertainty is also reflected in the February 2023 National Association for Business Economics (NABE) Outlook Survey, which found significant divergence regarding the outlook for the U.S. economy. “Estimates of inflation-adjusted gross domestic product or real GDP, inflation, labor market indicators, and interest rates are all widely diffused, likely reflecting a variety of options on the fate of the economy – ranging from recession to soft landing to robust growth.”2 In its February 2023 release, The Conference Board forecasts a recession starting in early 2023, with economic weakness intensifying and spreading more widely throughout the US economy over the coming months. “This outlook is associated with persistent inflation and the Federal Reserve hawkishness. We forecast that real GDP growth will slow to 0.3 percent in 2023, and then rebound to 1.6 percent in 2024.”3 The Conference Board Consumer Confidence Index decreased in February for the second consecutive month. “The decrease reflected large drops in confidence for households aged 35 to 54 and for households earning $35,000 or more,” said Ataman Ozyildirim, Senior Director, Economics at The Conference Board.” 4 1 UCLA Anderson Forecast, December 2022, Goldilocks or Bust: Will the Economy by “Just Right” or Will We have a Recession?
2 February 2023 Outlook Survey Summary (nabe.com)
3 Economic Forecast for the US Economy (conference-board.org) 4 US Consumer Confidence (conference-board.org)
3 City of Santa Clara
Financial Status Report as of January 31, 2023
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 second estimate, the Gross Domestic Product (GDP) increased by 2.7%, 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/2023-02/tech4q22_2nd.pdf
4 City of Santa Clara
Financial Status Report as of January 31, 2023
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 $330 billion by 2024.
The State and local employment levels remain strong. After the State’s largest increase in the unemployment rate in April 2020, the California unemployment rate remained flat at 4.1% between November and December 2022. This rate is lower compared to the 5.8% rate in December 2021.
California has now regained all of the 2.76 million nonfarm jobs lost due to COVID-19 in March and April 2020 and has outpaced the country’s job growth as a whole by 0.6%.7 The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) slightly decreased to 2.1% in December 2022, from a revised 2.4% in November 2022, and is below the December 2021 level of 2.9% and the February 2020 pre-pandemic level of 2.6%.
Between December 2021 and December 2022, employment in this region increased by 47,100 jobs, or
4.1%.8 The largest increases were in professional and business services (up 12,200 jobs), private educational and health services (up 9,800 jobs), and leisure and hospitality (up by 8,600 jobs).
Staff will continue to closely monitor the economic environment and the City’s financial performance and provide updates through the Monthly Financial Reports.
7 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-december-2022/ 8 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
5 City of Santa Clara
Financial Status Report as of January 31, 2023
General Fund Revenues
As of January 31, 2023, $131.4 million, or 55% 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
01/31/2023
Percentage
Received
Actual Through
01/31/2022
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,173,000$ 60,173,000$ 26,001,542$ 43.21% 22,666,505$ 3,335,037$ 14.71% Property Tax 75,261,000 75,261,000 43,319,987 57.56% 37,721,113 5,598,874 14.84% Transient Occupancy Tax 12,600,000 12,600,000 9,115,846 72.35% 3,347,211 5,768,635 172.34% Other Taxes 6,260,000 6,260,000 2,472,870 39.50% 2,682,067 (209,197) -7.80% Total Taxes 154,294,000 154,294,000 80,910,245 52.44% 66,416,896 14,493,349 21.82%
LICENSES & PERMITS
Business Licenses 900,000 900,000 495,579 55.06% 486,320 9,259 1.90% Fire Operation Permits 2,100,000 2,358,000 1,129,278 47.89% 1,139,577 (10,299) -0.90% Miscellaneous Permits 72,000 72,000 33,136 46.02% 37,516 (4,380) -11.68% Total Licenses & Permits 3,072,000 3,330,000 1,657,993 49.79% 1,663,413 (5,420) -0.33% FINES & PENALTIES 1,465,000 1,615,000 161,916 10.03% 205,366 (43,450) -21.16% INTERGOVERNMENTAL 310,000 310,000 375,070 120.99% 599,956 (224,886) -37.48% CHARGES FOR SERVICES 31,258,098 31,258,098 19,132,687 61.21% 16,631,094 2,501,593 15.04% SILICON VALLEY POWER TRANSFER 26,170,000 26,170,000 16,708,934 63.85% 15,034,470 1,674,464 11.14%
USE OF MONEY & PROPERTY
Interest 2,532,000 2,532,000 916,344 36.19% 865,946 50,398 5.82% Rent 10,584,266 10,584,266 6,095,663 57.59% 5,385,709 709,954 13.18% Total Use of Money & Property 13,116,266 13,116,266 7,012,007 53.46% 6,251,655 760,352 12.16% MISCELLANEOUS REVENUES 150,000 189,099 1,939,692 1025.75% 399,612 1,540,080 385.39%
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% 32,758,819 3,960,260 12.09% 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% 44,457,876 570,302 1.28%
STADIUM OPERATION
Charges for Services 7,889,147 7,889,147 2,822,623 35.78% 1,655,345 1,167,278 70.52% Rent and Licensing 752,500 752,500 678,661 90.19% 286,278 392,383 137.06% Total Stadium Operation 8,641,647 8,641,647 3,501,284 40.52% 1,941,623 1,559,661 80.33% TOTAL GENERAL FUND 272,355,355$ 283,952,289$ 176,428,007$ 62.13% 153,601,961$ 22,826,046$ 14.86% (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 January 31, 2023
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 January 31, 2023, approximately $26.0 million has been collected. This reflects an increase of $3.3 million when compared to collections through the same period last fiscal year. In this fiscal year, sales tax receipts increased 15.7% in the July – September 2022 quarter and 2.4% in the October – December 2022 quarter when compared to the same quarters last fiscal year. Growth of 3% is needed in the remaining two 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 January, 57.6% 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 at $81.6 million, well above the Adopted Budget estimate of $75.3 million. This reflects an increase of 9.4% from the prior year.
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 January 31, 2023, approximately $9.1 million has been received, which is significantly higher than receipts through the same period last fiscal year of $3.3 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 end the year at approximately $19 - $20 million, exceeding the budgeted estimate of $12.6 million.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $2.5 million through January, 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 slightly 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 $1.7 million, or 50% of the budget of $3.3 million, through January. 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 $0.2 million collected through January 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, fire mutual aid, state mandated reimbursement and redistribution of land sale proceeds and ground leases from the
7 City of Santa Clara
Financial Status Report as of January 31, 2023
Successor Agency. Through January 31, 2023, $0.4 million has been received, which is lower than the prior year collection level but above the budgeted estimate. Fire mutual aid revenues are recommended to be recognized and appropriated to the Fire Department to support their operations.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through January 31, 2023, collections are tracking within the budgeted estimate at $19.1 million, or 61.2% of the budget. This reflects an 15% increase compared to last year’s collections through the same period of $16.6 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 January 31, 2023, $16.7 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 $7.0 million, or 53.5% of the budget. These collections are higher than collections through last fiscal year of $6.3 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 January 31, 2023, 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 January 31, 2023, charges for services collected through the Stadium totaled $3.51 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. A budget amendment is recommended in this report to increase both the charges for services estimate and appropriations for Stadium as a result of higher expenses related to the additional playoff games held at Levi’s Stadium.
8 City of Santa Clara
Financial Status Report as of January 31, 2023
General Fund Expenditures
As of January 31, 2023 , $ 158.1 million or 55.7% of the Gener al Fund operating budget had been expended. This is significantly lower than last fiscal year due to lower budgeted transfers to other funds; last year included 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 January. Departmental expenditures totaled $146.3 million, or 53.7% of the budget, which is below the par level of 58% of the budget. Several cost-control measures that were implemented in FY 2 019/20 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
01/31/2023
Percentage
Use d
Actual Through
01/31/2022
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 7,514,334$ 9,689,394$ 2,858,828$ 29.50% 2,567,224$ 291,603$ 11.36% City Council 861,105 862,396 378,064 43.84% 486,641 (108,577) -22.31% City Clerk 2,076,112 2,093,661 1,344,946 64.24% 799,301 545,645 68.27% City Manager 6,085,321 6,292,428 2,565,989 40.78% 2,846,907 (280,918) -9.87% City Attorney 3,202,735 3,690,974 1,834,500 49.70% 1,419,126 415,374 29.27% Human Resources 4,508,710 4,828,451 2,104,335 43.58% 2,089,060 15,275 0.73% Finance 19,045,131 20,272,300 9,753,119 48.11% 8,960,984 792,135 8.84% Total General Government 43,293,448 47,729,604 20,839,781 43.66% 19,169,243 1,670,537 8.71% PUBLIC WORKS 24,021,840 25,092,840 12,624,862 50.31% 12,723,439 (98,577) -0.77% COMMUNITY DEVELOPMENT 5,398,007 5,665,420 2,597,951 45.86% 2,684,587 (86,636) -3.23% PARKS AND RECREATION 21,695,302 22,287,115 11,536,921 51.76% 10,355,185 1,181,736 11.41%
PUBLIC SAFETY
Fire 62,298,852 65,944,826 39,300,348 59.60% 35,277,582 4,022,766 11.40% Police 84,615,023 85,779,549 47,064,935 54.87% 42,754,936 4,309,999 10.08% Total Public Safety 146,913,875 151,724,375 86,365,283 56.92% 78,032,518 8,332,765 10.68% LIBRARY 11,889,451 12,277,870 6,013,159 48.98% 4,967,166 1,045,993 21.06% DEPARTMENTAL TOTAL 253,211,923 264,777,224 139,977,956 52.87% 127,932,138 12,045,818 9.42%
OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 38,809 38,809 38,809 100.00% 23,851,216 (23,812,407) -99.84% 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% 43,056,938 (31,261,541) -72.61% STADIUM OPERATION 7,364,147 7,379,668 6,285,522 85.17% 4,611,946 1,673,576 36.29% TOTAL GENERAL FUND 272,355,355$ 283,952,289$ 158,058,875$ 55.66% 175,601,022$ (17,542,147)$ -9.99% 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 January 31, 2023
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 January 31, 2023, expenditures totaled $2.9 million, or 29.5% of the budget. These expenditures are tracking below budget 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 January, actual expenditures totaled approximately $1.8 million, which is below expected levels at 58% of the budget. Spending is 29% 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 January, actual expenditures were tracking above budget at $1.3 million or approximately 64.2% of the budget. This reflects a 68% 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. Although expenditures are tracking above par, it is still anticipated that the Department will end the year within budget.
City Council: Through January, expenditures were at 43.8% of budget, which is below par. Compared to the same period through last fiscal year, this reflects a spending decrease of approximately 22%, which is primarily the result of savings due to vacancies within the department.
City Manager: Expenditures through January totaled $2.6 million, or 40.8% of the budget, which is below par for this time of the year. Expenditures are also 10% 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 January, departmental expenditures for the Planning and Housing and Community Services divisions totaled $2.6 million, or 46% of budget, which is below the par level of 58%. Expenditures were slightly below the spending through the same period last fiscal year due to lower non-personnel expenditures.
Finance Department: Through January, the Department’s expenditures totaled $9.8 million, or 48.1% of the budget, which is below par. This expenditure level was approximately 8.8% 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 January 31, 2023, expenditures totaled $39.3 million, or 59.6% of the budget, which is slightly above par. These expenditures reflect a 11.4% increase from expenditures
10 City of Santa Clara
Financial Status Report as of January 31, 2023
through the same period last fiscal year. This increase in spending reflects higher costs in the salaries and benefits, as-needed, contractual services, maintenance, and capital outlay categories. Overtime expenditures are tracking at 98% 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. A budget amendment is recommended in this report to recognize and appropriate $0.3 million for Cal OES reimbursements.
Library Department: Through January, actual expenditures totaled $6.0 million, or 49% of the budget, which is below par, but nearly 21% 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 January, actual expenditures totaled approximately $11.5 million, or 51.8% of the budget, which is below par, but above the prior year actuals of $10.4 million. This is due to the department resuming activities that were previously impacted by COVID-19 restrictions.
Police Department: Expenditures through January are tracking below expected levels at $47.1 million, or 54.9% of the budget. This is approximately 10% 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 $6.3 million through January and are tracking above budgeted levels at 85.2%. This is 36.3% higher than expenditures through the same period last year, as a direct result of the reopening of the Stadium for events. A budget amendment is recommended in this report to increase the Stadium appropriation to cover costs associated with the additional playoff games held at Levi’s Stadium. This increase is recommended to be offset by an increase in Charges for Services revenue.
11 City of Santa Clara
Financial Status Report as of January 31, 2023
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of January 31, 2023. The amended budget reflects carryover encumbrances from fiscal year 2021/22 and budget amendments approved by the City Council through January 2023. 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 $14.3 million, or 52.8% of budget, while expenditures totaled $13.9 million, or 39.9% of budget through the end of January. Overall, revenues and expenditures are tracking below par of 58%. 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 1/31/2023 received 1/31/2022 Prior Year Change Housing Authority Fund 280,000$ 252,495$ 47,606$ 18.85% 236,259$ (188,653)$ -79.85% City Affordable Housing Fund 682,000 7,162,700 226,563 3.16% 1,445,601 (1,219,038) -84.33% Housing Successor Fund 350,000 1,306,326 461,980 35.36% 491,421 (29,441) -5.99% Housing and Urban Development 1,810,000 3,924,461 650,708 16.58% 1,511,246 (860,538) -56.94% Building Development Services Fee
Fund
14,112,000 14,464,458 12,933,744 89.42% 9,099,505 3,834,239 42.14% TOTAL 17,234,000$ 27,110,440$ 14,320,601$ 52.82% 12,784,032$ 1,536,569$ 12.02% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 1/31/2023 use d 1/31/2022 Prior Year Change Housing Authority Fund 380,363$ 559,503$ 116,014$ 20.74% 67,999$ 48,015$ 70.61% City Affordable Housing Fund 1,685,731 5,499,145 (255,883) -4.65% 534,608 (790,491) -147.86% Housing Successor Fund 1,242,599 6,049,148 5,368,963 88.76% 446,696 4,922,267 1101.93% Housing and Urban Development 2,355,815 5,199,984 1,105,342 21.26% 1,639,497 (534,155) -32.58% Building Development Services Fee
Fund
13,360,809 17,682,237 7,610,307 43.04% 6,009,680 1,600,627 26.63% TOTAL 19,025,317$ 34,990,017$ 13,944,743$ 39.85% 8,698,480$ 5,246,263$ 60.31%
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 January 31, 2023
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 January 2023. As of January 31, 2023, the capital fund revenue totaled $34.7 million. In the Parks and Recreation Capital Fund, $25.7 million has been collected, which includes $25.2 million in Mitigation Fee Act revenue.
REVENUES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 1/31/2023 Use d Parks & Recreation 1,075,000$ 3,301,620$ 4,376,620$ 25,674,008$ 586.62% Streets & Highways 6,325,096 15,921,680 22,246,776 2,678,660 12.04% Storm Drain 1,454,000 - 1,454,000 846,053 58.19% Public Buildings - 100,000 100,000 - 0.00% Related Santa Clara Developer 2,968,317 1,118,024 4,086,341 997,362 24.41% 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 14,305,223$ 20,441,324$ 34,746,547$ 32,810,394$ 94.43%
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 January 31, 2023
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 January 2023. As of January 31, 2023, capital fund expenditures totaled $21.6 million, or 15% of the amended budget.
As part of the adoption of the FY 2022/23 and FY 2023/24 capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2022.
Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2021/22 approved on December 6, 2022. These adjustments are reflected in the table below.
The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program (CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.
EXPENDITURES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 1/31/2023 Use d Parks & Recreation 9,164,819$ 20,913,971$ 30,078,790$ 2,858,647$ 9.50% Streets & Highways 27,025,308 53,175,624 80,200,932 10,724,311 13.37% Storm Drain 5,181,209 2,745,531 7,926,740 2,847,768 35.93% Fire 1,506,478 395,077 1,901,555 209,366 11.01% Library 413,111 35,747 448,858 77,357 17.23% Public Buildings 2,859,686 2,439,492 5,299,178 524,991 9.91% General Gov't - Other 3,687,314 6,158,460 9,845,774 1,179,330 11.98% City Affordable Housing Capital - 1,600,000 1,600,000 - 0.00% Related Santa Clara Developer 3,566,699 - 3,566,699 1,409,067 39.51% 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 1,783,209 55.36% TOTAL 56,695,224$ 87,463,902$ 144,159,126$ 21,644,102$ 15.01%
EXPENDITURE - OVERVIEW AND COMPARISON BY FUND
CITY OF SANTA CLARA
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
14 City of Santa Clara
Financial Status Report as of January 31, 2023
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of January 31, 2023. 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 and Water Utility Fund as a result of higher spending in the resources category.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 1/31/2023 received 1/31/2022 Prior Year Change Electric Utility Fund 615,818,445$ 629,425,236$ 324,545,295$ 51.56% 289,792,335$ 34,752,960$ 11.99% Water Utility Fund 48,358,520 48,358,520 28,043,498 57.99% 27,559,165 484,333 1.76% Sewer Utility Fund 40,459,345 40,459,345 26,973,292 66.67% 32,707,154 (5,733,862) -17.53% Cemetery Fund 600,000 600,000 336,249 56.04% 453,944 (117,695) -25.93% Solid Waste Utility Fund 37,245,092 37,245,092 19,207,225 51.57% 17,980,205 1,227,020 6.82% Water Recycling Fund 5,708,446 5,708,446 3,794,625 66.47% 3,672,122 122,503 3.34% TOTAL REVENUE 748,189,848$ 761,796,639$ 402,900,184$ 52.89% 372,164,925$ 30,735,259$ 8.26% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 1/31/2023 Use d 1/31/2022 Prior Year Change Electric Utility Fund 603,681,580$ 606,426,798$ 296,853,789$ 48.95% 285,592,662$ 11,261,127$ 3.94% Water Utility Fund 46,797,065 48,768,438 26,514,874 54.37% 23,464,770 3,050,104 13.00% Sewer Utility Fund 30,825,023 33,220,466 16,297,035 49.06% 15,540,614 756,421 4.87% Cemetery Fund 1,539,796 1,545,944 840,685 54.38% 818,203 22,482 2.75% Solid Waste Utility Fund 36,626,118 40,169,992 17,884,112 44.52% 16,707,763 1,176,349 7.04% Water Recycling Fund 5,729,413 5,739,135 3,691,262 64.32% 3,056,186 635,076 20.78% TOTAL - Operating
Appropriations
725,198,995$ 735,870,773$ 362,081,757$ 49.20% 345,180,198$ 16,901,559$ 4.90% 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.
15 City of Santa Clara
Financial Status Report as of January 31, 2023
A summary of revenue and expenses in the Enterprise Capital Improvement Funds are detailed in the tables below. Actual revenue through January 31, 2023 totaled $24.0 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 $35.3 million, or 12.9% of the amended budget. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2022/23 and FY 2023/24 budget adoption process for those projects that have not yet been completed. Adjustments to the capital carryover amounts based on actual year-end expenditures were approved as part of the Budgetary Year-End Report for FY 2021/22 on December 6, 2022 and are reflected below.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 1/31/2023 Use d Electric Utility Fund 37,850,877$ 14,554,461$ 52,405,338$ 13,084,007$ 24.97% Street Lighting (1) - - - 36,229 N/A Sewer Utility Fund - - - 10,899,790 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$ 24,024,359$ 45.57% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 1/31/2023 Use d Electric Utility Fund 130,791,189$ 80,191,903$ 210,983,092$ 28,631,873$ 13.57% Street Lighting (1) 239,338 5,637,312 5,876,650 68,608 1.17% Water Utility Fund 8,012,986 - 8,012,986 1,863,204 23.25% Sewer Utility Fund 22,399,877 23,316,657 45,716,534 3,955,097 8.65% Cemetery Fund 53,642 233,980 287,622 17,861 6.21% Solid Waste Utility Fund 891,521 4,488 896,009 351,217 39.20% Water Recycling Fund 29,774 - 29,774 - - Convention Center
Capital Fund
- 2,691,883 2,691,883 452,841 0
TOTAL - CIP
Appropriations
162,418,327$ 112,076,223$ 274,494,550$ 35,340,701$ 12.87% EXPENSES - FISCAL YEAR 2022/23
REVENUES - FISCAL YEAR 2022/23
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
CITY OF SANTA CLARA
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
EXPENDITURE - OVERVIEW AND COMPARISON BY FUND
(1) Street Lighting fund is part of Electric Capital Improvement Funds
16 City of Santa Clara
Financial Status Report as of January 31, 2023
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 January 31, 2023
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
January 31, 2023
18 City of Santa Clara
Financial Status Report as of January 31, 2023
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 January 2023. 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 January 2023 and for fiscal year 2022/23 are shown in the table below.
Department Jan-23
Fis cal Year
2022/23
Year To Date Designated Use
City Manager's Office -$ 50$ Help Your Neighbor Parks & Recreation 512 1,761 Case Management Parks & Recreation - 1,748 Roberta Jones Jr. Theatre Parks & Recreation - 30,600 Wade Brummal TOTALS 512$ 34,159$