_____________________________________________________________________
MONTHLY FINANCIAL STATUS REPORT
March 2023
2 City of Santa Clara
Financial Status Report as of March 31, 2023
This report summarizes the City’s financial performance for the month ended March 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.
Economic Overview
Economic indicators are mixed, and there is a tremendous amount of uncertainty. Given this level of uncertainty, both the December 2022 and March 2023 UCLA Anderson Forecasts presented a two- scenario approach: recession scenario and no recession scenario. The recession scenario predicts a recession occurring at the end of 2023, where “inflation would have continued to run hot if not for aggressive Federal Reserve action. In this scenario, the Federal Reserve forces a mild recession and accepts an economic contraction and higher unemployment to combat inflation.” In the no recession scenario, “economic growth slows but remains positive, inflation ebbs, labor markets remain robust, and the Federal Reserve takes a less aggressive approach to monetary policy tightening”. 1 The Conference Board Consumer Confidence Index decreased in April. “While consumers’ relatively favorable assessment of the current business environment improved somewhat in April, their expectations fell and remain below the level which often signals a recession looming in the short- term,” said Ataman Ozyildirim, Senior Director, Economics at The Conference Board. “Consumers became more pessimistic about the outlook for both business conditions and labor markets. Compared
1 UCLA Anderson Forecast, March 2023, Recession or No Recession? That is the Question
3 City of Santa Clara
Financial Status Report as of March 31, 2023
to last month, fewer households expect business conditions to improve and more expect worsening of conditions in the next six months. They also expect fewer jobs to be available over the short term.
April’s decline in consumer confidence reflects particular deterioration in expectations for consumers under 55 years of age and for households earning $50,000 and over.”2 In the first quarter 2023 advance estimate, the Gross Domestic Product (GDP) increased by 1.1%, following a GDP increase of 2.6% in the fourth quarter 2022. The GDP increase in the first quarter reflects higher consumer spending, exports, federal, State and local spending.3
On a national level, the unemployment rate remained unchanged in March 2023 at 3.5% from February 2023. This rate was well below the record setting high of 14.7% in April 2020, and consistent with the pre-pandemic unemployment rate of 3.5%. In March, the number of unemployed persons stayed at 5.8 million, which is slightly higher than the pre-pandemic level of 5.7 million.4
2 US Consumer Confidence (conference-board.org)
3 https://www.bea.gov/sites/default/files/2023-04/tech1q23_adv.pdf 4 https://www.bls.gov/news.release/pdf/empsit.pdf
4 City of Santa Clara
Financial Status Report as of March 31, 2023
The State and local employment levels remain strong. The California unemployment rate was unchanged at 4.4% in February 2023 and March 2023. This rate is also consistent with the 4.4% rate in March 2022. Since April 2020, California has gained 3.05 million jobs; regaining all of the 2.76 million nonfarm jobs lost due to COVID-19 in March and April 2020.5 The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 3.3% in March 2023, up slightly from a revised 3.2% in February 2023 and is above the March 2022 level of 2.9% and the February 2020 pre-pandemic level of 2.6%. Between March 2022 and March 2023, employment in this region increased by 37,700 jobs, or 3.3%.6 The largest increases were in leisure and hospitality (up 12,000 jobs), private educational and health services (up 9,600 jobs), and professional and business services (up by 8,500 jobs).
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 $290.9 million to reflect various budget amendments approved by the City Council through March 2023.
General Fund revenues are currently tracking to end the year above the budgeted level. Through March, departmental expenditures are tracking below budget and this trend is expected to continue as departments continue to experience vacancies and control expenditures through various cost control measures.
5 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-february-2023/ 6 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
5 City of Santa Clara
Financial Status Report as of March 31, 2023
General Fund Revenues
As of March 31, 2023, $174.3 million, or 72.5% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $50.6 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
03/31/2023
Percentage
Received
Actual Through
03/31/2022
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,173,000$ 60,173,000$ 36,836,004$ 61.22% 33,791,472$ 3,044,532$ 9.01% Property Tax 75,261,000 75,261,000 50,521,029 67.13% 42,388,600 8,132,429 19.19% Transient Occupancy Tax 12,600,000 12,600,000 11,219,932 89.05% 4,676,175 6,543,757 139.94% Other Taxes 6,260,000 6,260,000 3,407,398 54.43% 3,683,915 (276,517) -7.51% Total Taxes 154,294,000 154,294,000 101,984,363 66.10% 84,540,162 17,444,201 20.63%
LICENSES & PERMITS
Business Licenses 900,000 900,000 640,064 71.12% 624,863 15,201 2.43% Fire Operation Permits 2,100,000 2,358,000 1,450,474 61.51% 1,447,222 3,252 0.22% Miscellaneous Permits 72,000 72,000 40,719 56.55% 60,585 (19,866) -32.79% Total Licenses & Permits 3,072,000 3,330,000 2,131,257 64.00% 2,132,670 (1,413) -0.07% FINES & PENALTIES 1,465,000 1,615,000 283,587 17.56% 274,374 9,213 3.36% INTERGOVERNMENTAL 310,000 609,286 1,030,603 169.15% 2,399,429 (1,368,826) -57.05% CHARGES FOR SERVICES 31,258,098 31,239,098 24,388,202 78.07% 22,223,907 2,164,295 9.74% SILICON VALLEY POWER TRANSFER 26,170,000 26,170,000 21,482,915 82.09% 19,330,032 2,152,883 11.14%
USE OF MONEY & PROPERTY
Interest 2,532,000 2,532,000 1,772,376 70.00% 1,145,815 626,561 54.68% Rent 10,584,266 10,584,266 8,970,385 84.75% 7,347,672 1,622,713 22.08% Total Use of Money & Property 13,116,266 13,116,266 10,742,761 81.90% 8,493,487 2,249,274 26.48% MISCELLANEOUS REVENUES 150,000 189,611 2,648,833 1396.98% 552,764 2,096,069 379.20%
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 7,968,589 7,968,589 100.00% 5,593,917 2,374,672 42.45% Total Other Financing Sources 33,878,344 50,626,394 50,626,394 100.00% 44,624,394 6,001,999 13.45%
STADIUM OPERATION
Charges for Services 7,889,147 8,939,147 8,857,315 99.08% 2,238,497 6,618,818 295.68% Rent and Licensing 752,500 752,500 710,000 94.35% 297,359 412,641 138.77% Total Stadium Operation 8,641,647 9,691,647 9,567,315 98.72% 2,535,856 7,031,459 277.28% TOTAL GENERAL FUND 272,355,355$ 290,881,302$ 224,886,230$ 77.31% 187,107,075$ 37,779,155$ 20.19% (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 March 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 March 31, 2023, approximately $36.8 million has been collected. This reflects an increase of $3.0 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 March, 67.1% 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 $84.1 million, well above the Adopted Budget estimate of $75.3 million and the prior year collections of $74.6 million. This reflects strong growth in the secured, supplemental, and unsecured property tax categories. A budget amendment is recommended to recognize the projected revenue above the Adopted Budget of $8.86 million. Of this amount, $1.65 million is recommended to be set aside in a new Property Tax Excess Education Augmentation Revenue Fund (ERAF) Reserve to address potential legal challenges associated with these funds. In FY 2022/23, an estimated $5.5 million is projected from excess ERAF distributions (under Proposition 98, a portion of property tax receipts have been allocated to the ERAF beginning in 1992, and once there are sufficient funds in ERAF to fulfill the obligation to the school districts, excess funds are returned to the taxing entities that contributed the funding). The California School Boards Association has filed a lawsuit against the Controller of the State of California on the disbursement of the excess ERAF funds. Given this lawsuit, the County of Santa Clara has estimated that approximately 30% of the excess ERAF distribution is at risk (estimated $1.65 million in FY 2022/23).
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 March 31, 2023, approximately $11.2 million has been received, which is significantly higher than receipts through the same period last fiscal year of $4.7 million. While businesses continue to recover from COVID-19 impacts, activity has not yet reached pre- pandemic levels. TOT receipts through March are tracking at 89% of pre-pandemic levels; however, this is due in part to the TOT rate increase that went into effect in January 2022. Factoring out the rate increase, TOT activity is tracking at 74% of pre-pandemic levels. 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 $3.4 million through March, which is lower than prior year collection levels. This reflects lower collections in the documentary transfer tax category that are partially offset by higher collections in the franchise tax category. Even though receipts are tracking slightly below the prior year, they are projected to exceed the budgeted estimate of $6.3 million based on current collection trends.
7 City of Santa Clara
Financial Status Report as of March 31, 2023
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 $2.1 million, or 64% of the budget of $3.3 million, through March. This collection level is consistent with the prior fiscal year collection level. Based on current collections trends, revenues in this category are tracking to end the year below the budgeted estimate.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue of approximately $0.3 million collected through March 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. The late fees are no longer being waived as of April 1, 2023.
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 Successor Agency. Through March 31, 2023, $1.0 million has been received, which is lower than the prior year collection level but above the budgeted estimate. Fire mutual aid revenues of $0.3 million are recommended to be recognized and appropriated to the Fire Department to support their operations in this report.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through March 31, 2023, collections are tracking within the budgeted estimate at $24.4 million, or 78.1% of the budget.
This reflects a 10% increase compared to last year’s collections through the same period of $22.2 million. This increase is a result of higher collections for technology fee, Fire construction permits, and Fire EMS fees.
Transfer from City Utilities: In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund. As of March 31, 2023, $21.5 million has been received. Transfers throughout the year are based on the budgeted estimate and will be trued up at the end of the fiscal year based on actual performance.
Use of Money & Property: Includes realized interest income and rental income. Interest income and rent revenue collections totaled $10.7 million, or 81.9% of the budget. These collections are higher than collections through last fiscal year of $8.5 million. The increase in the interest income reflects the higher investment yield, while rents are higher primarily due to the Commerce Plaza and Hyatt Regency at 5101 Great America properties. Collections are expected to 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 March 31, 2023, collections of $2.6 million are higher than collections through the same period last fiscal year of $0.6 million. This increase is primarily attributable to the $1.67 million settlement between the City, the Santa Clara Stadium Authority, and the Forty-
8 City of Santa Clara
Financial Status Report as of March 31, 2023
Niners SC Stadium Company LLC and Forty Niners Stadium Management Company LLC (collectively, the Forty-Niners).
Stadium Operation: As of March 31, 2023, charges for services collected through the Stadium totaled $9.6 million, which is slightly above par for this time of year. This is significantly higher than collections through the same period last year resulting from the reopening of Stadium for events and two additional NFL playoff games held at the Stadium. The revenue estimate also reflects the $1.0 million adjustment approved as part of the January monthly financial report on March 21, 2023. Another budget amendment is recommended in this report to recognize and allocate additional reimbursements of $1.4 million.
9 City of Santa Clara
Financial Status Report as of March 31, 2023
General Fund Expenditures
As of March 31, 2023, $ 204.9 million or 70.5% of the Gener al Fund operating budget had been expended. Overall, expenditures in the G eneral Fund are tracking below budgeted levels through March. Departmental expenditures totaled $180.2 million, or 68% of the budget, which is below the par level of 75% of the budget . This reflects savings from vacan t positions as w ell as savings generated from cost-control measures that were implemented in FY 2 019/20. These measures include a hiring freeze and controls around overtime, as-needed staff, mark eting, tra vel, te chnology and vehi cle purchases. With these measures, expenditures are expected to end the year below budget.
Adopted Budget
Amended
Budget
Actual Through
03/31/2023
Percentage
Use d
Actual Through
03/31/2022
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 7,514,334$ 9,513,394$ 3,287,596$ 34.56% 3,259,114$ 28,482$ 0.87% City Council 861,105 862,396 498,049 57.75% 601,265 (103,216) -17.17% City Clerk 2,076,112 2,093,661 1,549,525 74.01% 1,016,657 532,868 52.41% City Manager 6,085,321 6,292,428 3,951,745 62.80% 3,673,467 278,278 7.58% City Attorney 3,202,735 3,690,974 2,423,876 65.67% 1,756,636 667,240 37.98% Human Resources 4,508,710 4,828,451 2,739,764 56.74% 2,709,549 30,215 1.12% Finance 19,045,131 20,272,300 12,943,118 63.85% 11,609,696 1,333,422 11.49% Total General Government 43,293,448 47,553,604 27,393,673 57.61% 24,626,384 2,767,289 11.24% PUBLIC WORKS 24,021,840 25,092,840 16,297,109 64.95% 16,183,417 113,691 0.70% COMMUNITY DEVELOPMENT 5,398,007 5,665,420 3,313,742 58.49% 3,513,253 (199,511) -5.68% PARKS AND RECREATION 21,695,302 22,268,627 14,762,998 66.30% 13,313,275 1,449,723 10.89%
PUBLIC SAFETY
Fire 62,298,852 66,244,112 50,231,876 75.83% 33,579,334 16,652,542 49.59% Police 84,615,023 85,779,549 60,505,486 70.54% 40,573,018 19,932,468 49.13% Total Public Safety 146,913,875 152,023,661 110,737,362 72.84% 74,152,352 36,585,010 49.34% LIBRARY 11,889,451 12,277,870 7,689,722 62.63% 6,524,018 1,165,704 17.87% DEPARTMENTAL TOTAL 253,211,923 264,882,022 180,194,605 68.03% 138,312,699 41,881,907 30.28%
OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 38,809 38,809 38,809 100.00% 24,561,216 (24,522,407) -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 8,817,613 8,817,613 100.00% 11,773,925 (2,956,312) -25.11% Operating Transfer Out - Reserves - 5,598,215 5,598,215 100.00% 3,309,009 2,289,206 69.18% Total Other Financing Uses 11,779,285 17,569,612 17,569,612 100.00% 43,766,938 (26,197,326) -59.86% STADIUM OPERATION 7,364,147 8,429,668 7,164,127 84.99% 5,434,544 1,729,583 31.83% TOTAL GENERAL FUND 272,355,355$ 290,881,302$ 204,928,345$ 70.45% 187,514,181$ 17,414,164$ 9.29% Function
CITY OF SANTA CLARA
GENERAL FUND
EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2022/23 PY EXPENDITURES COMPARISON
10 City of Santa Clara
Financial Status Report as of March 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 March 31, 2023, expenditures totaled $3.3 million, or 34.6% 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. This category includes $1.7 million for the Education Revenue Augmentation Fund (ERAF) Property Tax contingency that was set aside as part of the FY 2021/22 Year-End Budgetary Report due to a legal challenge from the California School Boards regarding the distribution of the excess ERAF funds. Budget actions are recommended to move these funds, along with additional funds from FY 2022/23, to a new Property Tax Excess ERAF Reserve. This category also includes $1.8 million for separation payouts that has not been expended; these funds are transferred to departments as necessary to address these costs.
City Attorney: Through March, actual expenditures totaled approximately $2.4 million, which is below expected levels at 65.7% of the budget. Spending is 33% above the total expenditures through the same time last fiscal year due to higher costs for contractual legal services and salaries and benefits.
City Clerk: Through March, actual expenditures were tracking above budget at $1.5 million or approximately 74% of the budget. This reflects a 22% increase in spending compared to prior year spend levels; however, is still within budgeted levels. This is a result of higher salaries and benefits costs in addition to one-time special election costs, and Granicus costs that are paid every other year.
City Council: Through March, expenditures were at 57.8% of budget, which is below par. Compared to the same period through last fiscal year, this reflects a spending decrease of approximately 17.2%, which is primarily the result of savings due to vacancies within the department.
City Manager: Expenditures through March totaled $3.9 million, or 62.8% of the budget, which is below par for this time of the year. Expenditures are 7.6% higher compared with the spending level through the same period last fiscal year. This increase reflects higher property management maintenance costs and as-needed spending. This increase is offset by lower spending in contractual services and salaries and benefits.
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 March, General Fund expenditures for the Planning and Housing and Community Services divisions totaled $3.3 million, or 58.5% of budget, which is below the par level of 75%. Expenditures were slightly below the spending through the same period last fiscal year due to lower non-personnel expenditures.
11 City of Santa Clara
Financial Status Report as of March 31, 2023
Finance Department: Through March, the Department’s expenditures totaled $12.9 million, or 63.8% of the budget, which is below par. This expenditure level was approximately 11.5% higher than expenditure levels through the same period last year. This is a result of higher expenditures primarily in the salaries and benefits categories.
Fire Department: Through March 31, 2023, expenditures totaled $50.2 million, or 75.8% of the budget, which is at par. These expenditures reflect a 49% increase from expenditures through the same period last fiscal year. This large increase compared to the prior year is a result of the shifting of $11.3 million of Fire’s operating budget to the American Rescue Plan Act (ARPA) Fund last year on a one-time basis. As the ARPA was one-time funding, this year’s tracking reflects all of the Department’s expenditures. Spending is higher in the salaries and benefits, as-needed, contractual services, maintenance, and capital outlay categories. Overtime expenditures are tracking above the budget at 108%. 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. The Department’s budget now reflects an adjustment appropriating $0.3 million for Cal OES reimbursements from the January 2023 monthly financial report. An additional $0.3 million of Cal OES reimbursements is recommended to be recognized and appropriated in this report.
Library Department: Through March, actual expenditures totaled $7.7 million, or 62.6% of the budget, which is below par, but nearly 17.8% higher than expenditure levels last fiscal year. This is a result of resuming operations which began earlier this calendar year.
Parks and Recreation Department: Through March, actual expenditures totaled approximately $14.8 million, or 66.3% of the budget, which is below par, but above the prior year actuals of $13.3 million.
This is due to the department resuming activities that were previously impacted by COVID-19 restrictions.
Police Department: Expenditures through March are tracking below expected levels at $60.5 million, or 70.5% of the budget. This is approximately 49% higher when compared to spending levels through the same period last fiscal year. Similar to the Fire Department, this large increase compared to the prior year is a result of the shifting of $14.9 million of Police’s operating budget to the American Rescue Plan Act Fund last year on a one-time basis. As this was one-time funding, this year’s tracking reflects all of the Department’s expenditures.
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 $7.2 million through March and are tracking above budgeted levels at 85%. This is 31.8% higher than expenditures through the same period last year, as a direct result of the reopening of the Stadium for events and two additional NFL playoff games held at the Stadium. The budget also reflects the $1.0 million adjustment approved as part of the January monthly financial report on March 21, 2023. Another budget amendment is recommended in this report to recognize and allocate additional projected reimbursements of $1.4 million.
12 City of Santa Clara
Financial Status Report as of March 31, 2023
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of March 31, 2023. The amended budget reflects carryover encumbrances from fiscal year 2021/22 and budget amendments approved by the City Council through March 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 $22.8 million, or 84.2% of budget, while expenditures totaled $23.5 million, or 57.2% of budget through the end of March. Overall, revenues are tracking above budget due primarily to strong performance in the Building Development Services Fee Fund while expenditures are tracking below par of 75%. The Housing Successor Agency Fund expenditures are tracking above budgeted levels; however, this is the result of a loan disbursement being expended in full. Spending for the remainder of the year is expected to level off and end within budget.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 3/31/2023 received 3/31/2022 Prior Year Change Housing Authority Fund 280,000$ 277,495$ 80,839$ 29.13% 244,837$ (163,998)$ -66.98% City Affordable Housing Fund 682,000 7,162,700 6,276,241 87.62% 2,373,937 3,902,304 164.38% Housing Successor Fund 350,000 1,306,326 496,001 37.97% 533,489 (37,488) -7.03% Housing and Urban Development 1,810,000 3,924,461 791,496 20.17% 1,652,927 (861,431) -52.12% Building Development Services Fee
Fund
14,112,000 14,464,458 15,212,076 105.17% 12,929,548 2,282,528 17.65% American Rescue Plan Act Fund - - - 0.00% 13,262,615 (13,262,615) -100.00% TOTAL 17,234,000$ 27,135,440$ 22,856,653$ 84.23% 30,997,353$ (8,140,700)$ -26.26% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 3/31/2023 use d 3/31/2022 Prior Year Change Housing Authority Fund 380,363$ 584,503$ 168,988$ 28.91% 91,977$ 77,011$ 83.73% City Affordable Housing Fund 1,685,731 11,499,145 6,720,953 58.45% 704,645 6,016,308 853.81% Housing Successor Fund 1,242,599 6,049,148 5,412,530 89.48% 562,012 4,850,518 863.06% Housing and Urban Development 2,355,815 5,223,984 1,288,596 24.67% 2,517,198 (1,228,602) -48.81% Building Development Services Fee
Fund
13,360,809 17,682,237 9,883,700 55.90% 7,967,812 1,915,888 24.05% American Rescue Plan Act Fund - - - 0.00% 25,921,801 (25,921,801) -100.00% TOTAL 19,025,317$ 41,039,017$ 23,474,767$ 57.20% 37,765,445$ (14,290,678)$ -37.84%
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
13 City of Santa Clara
Financial Status Report as of March 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 March 2023. As of March 31, 2023, the capital fund revenue totaled $32.5 million. In the Parks and Recreation Capital Fund, $24.3 million has been collected, which includes $23.2 million in Mitigation Fee Act revenue.
REVENUES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 3/31/2023 Use d Parks & Recreation 26,256,378$ 3,301,620$ 29,557,998$ 24,347,983$ 82.37% Streets & Highways 6,634,174 15,921,680 22,555,854 2,927,684 12.98% Storm Drain 1,454,000 - 1,454,000 1,086,497 74.72% Public Buildings - 100,000 100,000 100,000 100.00% City Affordable Housing Capital - - - 630,142 NA 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 39,795,679$ 20,441,324$ 60,237,003$ 32,509,169$ 53.97%
CITY OF SANTA CLARA
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
14 City of Santa Clara
Financial Status Report as of March 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 March 2023. As of March 31, 2023, capital fund expenditures totaled $26.8 million, or 17% of the amended budget.
As part of the adoption of the FY 2022/23 and FY 2023/24 capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2022.
Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2021/22 approved on December 6, 2022. These adjustments are reflected in the table below.
The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program (CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.
EXPENDITURES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 3/31/2023 Use d Parks & Recreation 20,141,514$ 20,913,971$ 41,055,485$ 5,683,526$ 13.84% Streets & Highways 27,334,386 53,175,624 80,510,010 11,843,936 14.71% Storm Drain 5,181,209 2,745,531 7,926,740 2,936,884 37.05% Fire 1,580,091 395,077 1,975,168 504,154 25.52% Library 413,111 35,747 448,858 88,245 19.66% Public Buildings 4,378,736 2,439,492 6,818,228 557,111 8.17% General Gov't - Other 3,687,314 6,158,460 9,845,774 1,396,147 14.18% City Affordable Housing Capital - 1,600,000 1,600,000 - 0.00% Related Santa Clara Developer 3,566,699 - 3,566,699 1,901,438 53.31% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 57,459 83.03% Tasman East Specific
Infrastructure Improvement
Fund
3,221,395 - 3,221,395 1,793,747 55.68% TOTAL 69,573,660$ 87,463,902$ 157,037,562$ 26,762,647$ 17.04%
EXPENDITURE - OVERVIEW AND COMPARISON BY FUND
CITY OF SANTA CLARA
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
15 City of Santa Clara
Financial Status Report as of March 31, 2023
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of March 31, 2023.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 3/31/2023 received 3/31/2022 Prior Year Change Electric Utility Fund 615,818,445$ 629,425,236$ 435,036,034$ 69.12% 382,050,722$ 52,985,312$ 13.87% Water Utility Fund 48,358,520 48,358,520 35,056,719 72.49% 35,884,932 (828,213) -2.31% Sewer Utility Fund 40,459,345 40,459,345 33,832,442 83.62% 40,985,981 (7,153,539) -17.45% Cemetery Fund 600,000 600,000 437,160 72.86% 565,524 (128,364) -22.70% Solid Waste Utility Fund 37,245,092 37,245,092 25,273,560 67.86% 23,689,033 1,584,527 6.69% Water Recycling Fund 5,708,446 5,708,446 4,438,177 77.75% 4,444,386 (6,209) -0.14% TOTAL REVENUE 748,189,848$ 761,796,639$ 534,074,092$ 70.11% 487,620,578$ 46,453,514$ 9.53% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 3/31/2023 Use d 3/31/2022 Prior Year Change Electric Utility Fund 603,681,580$ 606,426,798$ 438,653,367$ 72.33% 368,600,861$ 70,052,506$ 19.00% Water Utility Fund 46,797,065 48,768,438 33,606,516 68.91% 30,984,498 2,622,018 8.46% Sewer Utility Fund 30,825,023 33,220,466 22,814,066 68.67% 21,767,702 1,046,364 4.81% Cemetery Fund 1,539,796 1,545,944 1,073,226 69.42% 1,031,717 41,509 4.02% Solid Waste Utility Fund 36,626,118 40,169,992 22,618,086 56.31% 21,151,945 1,466,141 6.93% Water Recycling Fund 5,729,413 5,739,135 5,418,891 94.42% 4,620,442 798,449 17.28% TOTAL - Operating
Appropriations
725,198,995$ 735,870,773$ 524,184,152$ 71.23% 448,157,165$ 76,026,987$ 16.96%
CITY OF SANTA CLARA
ENTERPRISE OPERATING FUNDS
REVENUES AND EXPENSES - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2022/23 PRIOR YEAR REVENUE COMPARISON PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2022/23
Revenues in the electric (which also includes the Electric Debt Service Fund), water, and sewer utility (which also includes the Sewer Debt Service Fund) and water recycling funds are primarily from customer service charges. The activity levels for these customer service charges also impact the resource and production costs on the expenditure side for these funds.
Expenditures in the Electric Utility Fund are tracking to end the year above the budget due to higher power purchase and production costs which are driven by the extreme spikes in natural gas prices. It is anticipated that higher revenues will partially offset these higher costs with the remainder addressed with the use of fund balance. SVP will continue to closely monitor the power purchase and production costs and will bring forward appropriate budget balancing actions in FY 2022/23 to address budget needs.
16 City of Santa Clara
Financial Status Report as of March 31, 2023
In the Cemetery Fund, revenue is tracking below the prior year due to lower sales, while the decrease in Sewer revenue reflects the amount of reimbursements received from the City of San Jose related to the co-owned Regional Wastewater Facility. Expenditures are tracking higher in the Water Recycling Fund and Water Utility Fund as a result of higher spending in the resources category. A budget adjustment in the Water Recycling Fund is recommended in this report to account for the significantly higher spend in the resource category.
17 City of Santa Clara
Financial Status Report as of March 31, 2023
A summary of revenue and expenses in the Enterprise Capital Improvement Funds are detailed in the tables below. Actual revenue through March 31, 2023 totaled $32.8 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 $42.2 million, or 15.5% of the amended budget. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2022/23 and FY 2023/24 budget adoption process for those projects that have not yet been completed. Adjustments to the capital carryover amounts based on actual year-end expenditures were approved as part of the Budgetary Year-End Report for FY 2021/22 on December 6, 2022 and are reflected below.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 3/31/2023 Use d Electric Utility Fund 40,950,870$ 14,554,461$ 55,505,331$ 22,107,183$ 39.83% Street Lighting (1) - - - 41,442 N/A Sewer Utility Fund - - - 10,612,481 N/A Solid Waste Utility Fund 250,000 65,000 315,000 8,164 2.59%
TOTAL - CIP
Appropriations
41,200,870$ 14,619,461$ 55,820,331$ 32,769,270$ 58.70% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 3/31/2023 Use d Electric Utility Fund 131,429,732$ 80,191,903$ 211,621,635$ 33,057,211$ 15.62% Street Lighting (1) (1,835,662) 5,637,312 3,801,650 133,405 3.51% Water Utility Fund 8,012,986 - 8,012,986 2,446,573 30.53% Sewer Utility Fund 22,399,877 23,316,657 45,716,534 5,690,977 12.45% Cemetery Fund 53,642 233,980 287,622 19,399 6.74% Solid Waste Utility Fund 891,521 4,488 896,009 395,031 44.09% Water Recycling Fund 29,774 - 29,774 6,037 0 Convention Center
Capital Fund
- 2,691,883 2,691,883 455,401 0
TOTAL - CIP
Appropriations
160,981,870$ 112,076,223$ 273,058,093$ 42,204,034$ 15.46% 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
18 City of Santa Clara
Financial Status Report as of March 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.
19 City of Santa Clara
Financial Status Report as of March 31, 2023
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 40,851,099$
Capital Projects Reserve 11,879,656
Land Sale Reserve 18,481,037
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 73,137,583$ 167,542,169$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
March 31, 2023
20 City of Santa Clara
Financial Status Report as of March 31, 2023
Long-Term Interfund Advances
On March 21, 2023, as part of the January Monthly Financial Report, the City Council approved a budget action transferring the remaining balance of the Parks and Recreation Facilities loan for the Reed and Grant Sports Park to the Land Sale Reserve. There are currently no outstanding balances for interfund advances.
Donations to the City of Santa Clara
Donations received by department during the month of March 2023 and for fiscal year 2022/23 are shown in the table below.
Department Mar-23
Fis cal Year
2022/23
Year To Date Designated Use
City Manager's Office -$ 75$ Help Your Neighbor Parks & Recreation - 2,771 Case Management Parks & Recreation 149 1,897 Roberta Jones Jr. Theatre Parks & Recreation - 30,600 Wade Brummal TOTALS 149$ 35,343$