Rev. 10/25/2019
Third Addendum to Scope of Services
The following tasks are to be included as additional services. A detailed description of these tasks is included in the attached proposal, entitled “Civic Center Relocation Study” dated September 8, 2022.
Task Fe e
1 Project Initiation and Management $ 23,090
2 Program Confirmation $17,030
3 Economic Assessment $33,470
4 Criteria and Site Comparison $ 25,970
5 Concept Development and Test-Fitting $ 81,800
6 Financial Evaluation $123,810
7 Additional Concept Refinement $23,000
8 Final Options Report $18,360
Expenses $6,830
Total: $353,360
In no event shall the maximum compensation under this Agreement as Amended for any and all services exceed one million three hundred thirty-one thousand, seven hundred six dollars ($1,331,706), subject to annual budget appropriations.
MEMORANDUM
WRT, LLC | 478 Tehama Street, Suite 2B | San Francisco, CA 94103 James Stickley CA LA-4251 wrtdesign.com | 415.575.4722 John Gibbs CA LA-4417
N
:\8000\8334.02 Santa Clara Civic Center Relocation Study\1-Administration\2-Agreements & Proposals\WRT Proposals\Santa Clara Civic Center Relocation Study_WRT Proposal_2022-09-19_clean.docx To: Lesley Xavier
Principal Planner, City of Santa
Clara
Via email
Date: September 8, 2022
From: Peter Winch
Project Manager, WRT
Ref. No.: 08334.02
Project: Civic Center Relocation Study
Re: WRT Team Proposal
CC: Jim Stickley
Principal, WRT
Dear
Lesley,
The WRT Team is drafting a Downtown Precise Plan that reflects extensive analysis and community and DCTF feedback. The Task Force and City Staff have requested that WRT provide a scope of work and fee for studying how a relocated City Hall and associated office space could fit downtown, and how it could be financed. This memo responds to that request.
In this effort, WRT would be joined by SSiegel and Strain AArchitects , bringing understanding of space needs for a city hall, and team members CSW|ST2 and TTBD Consulting with expertise in estimating civil and structural construction costs, respectively. On the economic side, EPS, our partner on the Downtown Precise Plan, would conduct case study analysis, while Project Finance Advisory Ltd. (PFAL) will provide specific expertise in public facility financing. RRunde & Partners, Inc. joins our team to provide property appraisal services.
The total Consultant fee for these proposed tasks is $353,030, and we anticipate a 6-month schedule.
Runde & Partners has requested a $10,000 retainer to begin work. This would need to be provided by the City.
Summary and detail fee tables and proposed schedule follow the proposed scope of work. We look forward to working with Staff and City leaders to refine this scope of work as needed.
MEMORANDUM
September 8, 2022
Page | 2
Santa Clara Civic Center Relocation Study: Scope and Fee TTask 1: Project Initiation and Management
The WRT Team will have a kickoff meeting with City Staff and confirm scope, schedule, and City objectives. The Team will conduct targeted background research and mapping needed to understand the existing Civic Center site and previous studies, and to establish base maps for the Relocation Study. This task also covers ongoing project management.
Meetings:
x Kick-off meeting
x Project management calls with Staff as needed
Deliverables:
x Project Schedule and Work Plan (periodically updated) x Base Maps for Existing Civic Center and Downtown
x Base Model for Downtown (as developed for Downtown Precise Plan) Timeframe: Approximately 6 months
Task 2: Program Confirmation
WRT, Siegel & Strain and PFAL will conduct an initial work session to review available City hall/civic center program documentation, relevant previous studies, and the Downtown Santa Clara Precise Plan and Form-based Code (drafts). The Team will confirm the desired relocation program with the City, which may include conducting stakeholder interviews.
S&S will review provided documentation related to projected civic center spatial needs and document a high-level spatial program organized by department according to data provided.
PFAL will review the architect’s high-level spatial program.
Note: Required effort will be dependent on available documentation and expectation level.
Meetings:
x Meeting with City Staff (1)
MEMORANDUM
September 8, 2022
Page | 3
x Team meetings as needed
Deliverables:
x Base spatial program definition
Timeframe: 1 month
Task 3: Economic Assessment
Beginning concurrently with the program confirmation, EPS will assist with analysis of the economic impact of locating the Santa Clara City Hall in the downtown area, as follows.
Case Studies
In coordination with WRT, EPS will identify up to six examples of City Hall relocation projects across the United States to serve as case studies. The Team will seek examples (successful and otherwise) that are comparable to Santa Clara and/or the downtown site in one way or another (e.g., similar City population; site adjacency to transit, university, or historic neighborhood. We will seek case studies with a range of outcomes, including examples with more and less resulting investment. For each case study, EPS will conduct research to understand each city hall project based on City documents, hearing transcripts, media reporting, and other readily available sources. EPS will also contact each city to seek an interview with staff about the project, including benefits, challenges, and lessons learned, etc. EPS will report on outcomes, including the degree to which private investment has followed public investment.
Economic Impact Analysis
EPS will complete an illustrative economic impact analysis that considers potential localized spending effects on downtown from a new City Hall, as compared to the baseline site use (a comparably sized future office building). EPS will rely on WRT to identify the City Hall program and alternative. The analysis will quantify employment and visitation estimates, identify likely retail spending patterns and estimated sales tax revenues, and compare likely spending across development alternatives. Given the localized nature of the analysis, EPS will focus on direct spending in the downtown.
Meetings:
x Meeting with City Staff
x DCTF Meeting (1)
x Team meetings as needed
MEMORANDUM
September 8, 2022
Page | 4
Deliverables:
x Presentation on case study analysis and economic impact analysis x Memorandum on economic impact analysis of potential City hall relocation
Timeframe: 1.5 months
TTask 4: Criteria and Site Comparison
WRT, Siegel & Strain, and PFAL will conduct a criteria-based process for evaluating potential Downtown sites for a relocated City Hall. Our process will consider a range of factors that relate to program, site characteristics, and finance. These factors may include:
x Land ownership and encumbrance
x Site size and dimensions; program fit
x Contribution to downtown experience
x Transit access
x Enabling of multiple benefits
x Readiness for development/simplicity
x Surplus Land Act conditions
x Available financing tools
x Partners
The team will become grounded in an understanding of the Downtown district and the Precise Plan, through material review and a site visit. In a team working session we will confirm criteria, confirm up to 3 downtown sites that merit evaluation, and make initial qualitative findings for each criterion. These will be more thoroughly detailed by each member of the team, depending on expertise, and presented in a simple format in one meeting each to City Staff and the Task Force. The outcome of this process will be the creation of a qualitative evaluation matrix followed by City Staff and Task Force confirmation of a preferred downtown site for a relocated City Hall.
Meetings:
x Meeting with City Staff
x DCTF Meeting (1)
x Team meetings as needed
Deliverables:
x Evaluation matrix with criteria
x Presentation on criteria and site comparison
MEMORANDUM
September 8, 2022
Page | 5
Timeframe: 1 month
TTask 5: Concept Development and Test-Fitting
WRT and Siegel & Strain, with critical input from PFAL, will collaborate to develop up to three conceptual approaches to relocating city hall downtown to the preferred downtown site. Approaches are expected to be:
x Full relocation (City Hall and SVP);
x Partial relocation (City Hall only);
x Mixed-use (including private development), with full or partial relocation.
In terms of responsibilities:
x WRT will focus on urban design considerations.
x S&S will focus on organizing departments relative to one another based on overall area and adjacency requirements.
x PFAL will consider land use layout options with a view to enabling access to preferential funding and financing strategies.
WRT will also consider future land use concepts for the existing Civic Center site. This would begin at a high level, assigning site area to different land uses and recognizing potentially viable and beneficial future uses of the site.
Preliminary concepts for both sites will be shared with the larger Consultant team to understand cost, economic impact, and financing perspectives, and with City Staff for review and discussion.
Based on feedback, Siegel & Strain will develop draft diagrams for each downtown relocation concept. These will be reviewed in a second work session with WRT and PFAL, which will also cover general building parameters and assumptions such as construction type, sustainability goals, and related information to inform construction cost estimates.
Siegel & Strain will modify spatial diagrams as needed, prepare a narrative summary of building block organization and building assumptions for cost estimates. For the existing civic center site, WRT will estimate development capacity based on density formulas and informed by typical building forms. This will inform the economic evaluation of potential relocation.
WRT and Siegel & Strain will prepare a presentation to review the concepts with the Downtown Community Task Force (DCTF).
MEMORANDUM
September 8, 2022
Page | 6
Meetings:
x Meeting with City Staff (1)
x DCTF Meeting (1)
x Team work sessions and meeting (2 or as needed)
Deliverables:
x Presentation on Downtown site and building concepts, Civic Center concepts, and opportunities and challenges for each
Timeframe: 1.5 months
TTask 6: Financial Evaluation
Project Finance Advisory, Ltd. (PFAL) will perform a financial analysis to assess the concepts for relocating City Hall and offices to a revisioned downtown. This work will include:
x Reviewing the team’s assessment of the cost/benefits of relocating to a downtown location and reviewing expected revenue;
x Providing input into and review of initial concepts for alternative uses of the existing City Hall site, incorporating appraisals of existing Civic Center site and potential future City Hall development site
x Considering financing and delivery options, including the possibility of a public/private partnership, property disposal, and USDOT debt x Incorporating the cost estimates provided by the WRT Team and providing benchmarked lifecycle cost indications for a new facility for up to 3 sites x Reviewing background information, including the example sites mentioned by the DCTF and identifying salient characteristics relevant to Santa Clara’s objectives x Participating in one meeting with the Downtown Task Force and 3 additional meetings with the advisory team and City; meeting prep and presentation content x Draft and Final Report and Presentation
x Quality control and assurance
x Task Management, Coordination, and Administration (internal coordination calls with advisor team, client calls, invoicing, etc.)
The financial analysis will incorporate critical inputs from TBD Consulting, CSW/ST2, and Runde & Partners, as described below.
Construction Cost Estimate
MEMORANDUM
September 8, 2022
Page | 7
TBD Consulting will prepare a construction cost estimate for a new Civic Center based on the concepts defined in Task 4 This would include:
x One draft round of pricing + one revision round per comments and program/massing changes.
x Pricing to be order of magnitude ranges for each building containing Civic Center program.
x Excludes detail estimate backup or cost breakdowns per building system. x Estimate to include demo and site improvements at existing Civic Center locations.
x Construction pricing to be based on prevailing wage.
x Construction phasing can be considered if applicable. x Estimate effort can support up to 3 different massing schemes.
The estimate will identify the total cost of construction based on the quantities or allowances with composite unit rates where applicable reflecting the scope of work and the current market conditions. Pricing shall incorporate appropriate general contractor markups and escalation into cost ranges. The estimate will utilize TBD’s standard Order of Magnitude format. We will not obtain any bids or opinions of cost from subcontractors unless the work is of such a unique nature that no other cost information is available. WRT and their consultants shall provide program and massing diagrams for our use. We understand that reconciliation of estimates with other cost opinions will not be required.
We have also excluded time for value engineering, value analysis, other cost studies, estimating soft costs, and design & estimating ‘churning’ to reach a specific budget.
Siegel & Strain will field questions from estimator (to make sure his assumptions are correct) and to review a draft of the estimate.
Infrastructure Cost Estimate
CSW/ST2 will review the concepts and support the team in developing a construction cost analysis focused on civil engineering costs. Since public funds will be involved in construction, the costs will need to include prevailing wage rates. We will provide up to three estimates for the improvements.
Appraisals
The sites to be appraised include the portion of the existing Civic Center property that would be redeveloped if City Hall and related office functions were to be relocated. The appraisal would also address the fee simple market value of two to three potential relocation sites in the downtown area to be identified at a later date. These sites are to be located within the 10-square-block area between Lafayette Street, Madison Street, Benton Street, and Homestead Road. The area is in the process of a re-zoning that will intensify the
MEMORANDUM
September 8, 2022
Page | 8
development density in the area. Our appraisal would address the as-is value of each site at its highest and best use, once the permitted use(s) and density (FAR/height limit/dwelling unit density)have been determined. For existing public land, the requirements of the Surplus Land Act will be taken into account in determining realistic highest and best use. The intended use of this appraisal report is for assistance with a financial analysis of the costs and benefits of relocating City Hall to the downtown area.
The report is to be used for planning and advisory purposes, not for financing or acquisition purposes. The intended user is Peter Winch/WRT and the City of Santa Clara and the report should not be used or relied upon by any other person or entity for any reason.
As-Needed Project Support
EPS is available to provide WRT support concerning various economic and financial aspects of the City Hall relocation study. The firm’s expertise spans real estate, economic and fiscal impact analysis, public finance, and public policy practice areas. This proposal includes 40 hours EPS Principal-level time that may be used by WRT on an as-needed basis for project support.
Meetings:
x Meetings with City Staff
x DCTF Meeting (1)
Deliverables:
x Presentation on estimated costs associated with up to 3 relocation concepts, and funding options for each
x Memorandum
Timeframe: 1.5 months
TTask 7: Additional Concept Refinement
Based on City and DCTF feedback, and informed by the financial analysis, WRT and Siegel & Strain will refine land use and building block concepts for Downtown and the existing Civic Center site. The refined concepts will be reviewed with City Staff, and brought to the DCTF. We anticipate one Task Force meeting that will cover both the financial analysis and the refined concepts.
Meetings:
MEMORANDUM
September 8, 2022
Page | 9
x Meeting with City Staff
x DCTF Meeting (1)
Deliverables:
x Presentation on refined site and building concepts, relocation recommendations, and financing strategy
Timeframe: 1 month
TTask 8: Final Options Report and Council Presentation
WRT will document the final site concepts and economic analysis in a concise report, with narrative, graphics, and relevant tables. Other project deliverables may be included as appendices. Following a preparatory session with City Staff, WRT will present the final report findings to City Council.
Meetings:
x Meeting with City Staff
x City Council Meeting (1)
Deliverables:
x Final Options Report
Timeframe: 1 month
Santa Clara Downtown Precise Plan | Civic Center Relocation Study, September 8, 2022 FFee Summary
Task WRT Siegel & Strain EPS PFAL Runde & Partners CSW/ST2 TBD Consulting Team Fee 1 Project Initiation and Management 10,410$ 3,140 $ 1,140 $ 8,400 $ - $ - $ - $ 23,090$ 2 Program Confirmation 3,710$ 10,520 $ - $ 2,800$ - $ - $ - $ 17,030$ 3 City Hall Economic Assessment 9,040$ - $ 16,030$ 8,400 $ - $ - $ - $ 33,470$ 4 Criteria and Site Comparison 12,620$ 9,150 $ - $ 4,200$ - $ - $ - $ 25,970$ 5 Concept Development and Test-Fitting 49,650$ 25,150 $ - $ 7,000$ - $ -$ - $ 81,800$ 6 Financial Evaluation 9,220$ 2,600 $ 11,400 $ 46,900 $ 25,000 $ 13,210 $ 15,480 $ 123,810$ 7 Additional Concept Refinement 14,900$ 8,100 $ - $ - $ - $ - $ - $ 23,000$ 8 Final Options Report 15,380$ 2,980 $ - $ - $ - $ - $ - $ 18,360$ Total Labor 124,930 $ 61,640 $ 28,570 $ 77,700 $ 25,000 $ 13,210 $ 15,480 $ 346,530$ Expenses 2,500 $ 2,500 $ 330 $ 1,500 $ - $ - $ - $ 6,830$ Total 127,430 $ 64,140 $ 28,900 $ 79,200 $ 25,000 $ 13,210 $ 15,480 $ 353,360$ PProposed Schedule
MMonth
Task 1 2 3 4 5 6
1 Project Initiation and Management
2 Program Confirmation
3 City Hall Economic Assessment
4 Criteria and Site Comparison
5 Concept Development and Test-Fitting
6 Financial Evaluation
7 Additional Concept Refinement
8 Final Options Report
Santa Clara Downtown Precise Plan
Fee for City Hall Relocation Study, September 8, 2022
Job Classification
James Stickley
Principal
Senior
Planner/Urban
Designer
Urban Designer
Level 2
Urban Designer
Level 1 or
Administrative
Support
Hours by
Task Cost by Task
Principal
Project Manager
/ Architect
Senior Architect
/ Designer
Junior Architect
/ Desiger
Administrative
Hours by
Task Cost by Task
Ben Sigman
Principal
PM
Associate
Hours by Task Cost by Task
Principal/Associ
ate blend
Hours by
Task Cost by Task
Principal
Engineer
Hours by
Task Cost by Task
Robert Stevens
Principal
Engineer
Hours by
Task Cost by Task
Principal
Engineer
Hours by
Task Cost by Task Hours by
Task Cost by Task
Hourly Rate 245.00$ 185.00$ 125.00 $ 115.00 $ 270.00$ 190.00$ 150.00 $ 110.00 $ 80.00$ 285.00$ 185.00$ 350.00$ rate rate 231.00$ 157.00$ 215.00$ 160.00$ Task 1 Project Initiation and Management
1.1 Kickoff Meeting and Scope Confirmation 448 16 2,720.00$ 6 8 14 3,140.00$ 4 4 1,140.00$ 4 4 1,400.00$ 0 -$ 0 -$ 0 -$ 38 8,400.00$
1.2 Base Mapping 22 2 8 32 4,360.00$ 0 -$ 0 -$ 0 -$ 0 -$ 0 -$ 0 -$ 32 4,360.00$
1.3 Project Management 18 18 3,330.00$ 0 -$ 0 -$ 20 20 7,000.00$ 0 -$ 0 -$ 0 -$ 38 10,330.00$ Sub-Total - 62 4 3 6 0 68 0 04 0 24 00 00 00
Sub-Total - 66 10,410.00$ Sub-Total - 14 3,140.00$ 4 1,140.00$ 24 8,400.00$ Sub-Total - 0 -$ Sub-Total - 0 -$ Sub-Total - 0 -$ 108 23,090.00$ Task 2 Program Confirmation
2.1 Work Sessions, Interviews, and Document Review 428 14 2,350.00$ 4 4 8 1,840.00$ 0 -$ 8 8 2,800.00$ 0 -$ 0 -$ 0 -$ 30 6,990.00$
2.2 High-Level Base Spatial Program 224 8 1,360.00$ 4 40 44 8,680.00$ 0 -$ 0 -$ 0 -$ 0 -$ 0 -$ 52 10,040.00$ Sub-Total - 64 1 2 0 8 4 4 0 0 0 0 8 0 0 0 0 0 0
Sub-Total - 22 3,710.00$ Sub-Total - 52 10,520.00$ 0 -$ 8 2,800.00$ Sub-Total - 0 -$ Sub-Total - 0 -$ Sub-Total - 0 -$ 82 17,030.00$ Task 3 City Hall Economic Assessment
3.1 Case Studies 41 2 24 40 6,200.00$ 0 -$ 6 28 34 6,890.00$ 12 12 4,200.00$ 0 -$ 0 -$ 0 -$ 86 17,290.00$
3.2 Economic Impact Analysis 224 8 1,360.00$ 0 -$ 63 4 40 8,000.00$ 12 12 4,200.00$ 0 -$ 0 -$ 0 -$ 60 13,560.00$
3.3 Task Force Meeting #1 44 8 1,480.00$ 0 -$ 4 4 1,140.00$ 0 -$ 0 -$ 0 -$ 0 -$ 12 2,620.00$ Sub-Total - 10 14 32 0 0 0 0 0 16 62 24 00 00 00
Sub-Total - 56 9,040.00$ Sub-Total - 0 -$ 78 16,030.00$ 24 8,400.00$ Sub-Total - 0 -$ Sub-Total - 0 -$ Sub-Total - 0 -$ 158 33,470.00$ Task 4 Criteria and Site Comparison
4.1 Site Understanding 488 20 3,460.00$ 8 8 16 3,680.00$ 0 -$ 4 4 1,400.00$ 0 -$ 0 -$ 0 -$ 40 8,540.00$
4.2 Criteria Definition and Site Comparison 42 0 2 0 44 7,180.00$ 7 14 21 4,550.00$ 0 -$ 8 8 2,800.00$ 0 -$ 0 -$ 0 -$ 73 14,530.00$
4.3 Task Force Meeting #2 48 12 1,980.00$ 2 2 4 920.00$ 0 -$ 0 -$ 0 -$ 0 -$ 0 -$ 16 2,900.00$ Sub-Total - 12 2 8 3 6 0 17 2 40 0 0 0 0 12 00 00 00
Sub-Total - 76 12,620.00$ Sub-Total - 41 9,150.00$ 0 -$ 12 4,200.00$ Sub-Total - 0- $ Sub-Total - 0- $ Sub-Total - 0 -$ 129 25,970.00$ Task 5 Concept Development and Test Fitting
5.1 Conceptual Approaches for Relocating Civic Uses Downtown 16 16 64 32 128 18,560.00$ 3 3 6 1,380.00$ 0 -$ 8 8 2,800.00$ 0 -$ 0 -$ 0 -$ 142 22,740.00$
5.2 Site Concepts for Existing Civic Center Site 16 16 96 48 176 24,400.00$ 0 -$ 0 -$ 0 -$ 0 -$ 0 -$ 0 -$ 176 24,400.00$
5.3 Building Block Organization for City Hall and City Offices 64 1 2 22 3,710.00$ 18 83 101 20,630.00$ 0 -$ 12 12 4,200.00$ 0 -$ 0 -$ 0 -$ 135 28,540.00$
5.4 Task Force Meeting #3 41 6 20 2,980.00$ 6 8 14 3,140.00$ 0 -$ 0 -$ 0 -$ 0 -$ 0 -$ 34 6,120.00$ Sub-Total - 42 3 6 1 88 8 0 27 9 40 0 0 0 0 20 00 00 00 Sub-Total - 346 49,650.00$ Sub-Total - 121 25,150.00$ 0 -$ 20 7,000.00$ Sub-Total - 0 -$ Sub-Total - 0 -$ Sub-Total - 0 -$ 487 81,800.00$ Task 6 Financial Evaluation
6.1 Appraisal and Land Value Analysis 22 4 860.00$ 0 -$ 40 40 11,400.00$ 8 8 2,800.00$ 0 25,000.00$ 0 -$ 0 -$ 52 40,060.00$
6.2 Estimated Development Costs for New Civic Uses 22 4 860.00$ 4 8 12 2,600.00$ 0 -$ 32 32 11,200.00$ 0 -$ 30 40 70 13,210.00$ 72 72 15,480.00$ 190 43,350.00$
6.3 Evaluation of Financing Options 88 16 3,440.00$ 0 -$ 0 -$ 56 56 19,600.00$ 0 -$ 0 -$ 0 -$ 72 23,040.00$
6.4 Task Force Meeting #4 44 8 1,480.00$ 0 -$ 0 -$ 8 8 2,800.00$ 0 -$ 0 -$ 0 -$ 16 4,280.00$
6.5 Financial Analysis Report (Draft and Final) 66 12 2,580.00$ 0 -$ 0 -$ 30 30 10,500.00$ 0 -$ 0 -$ 0 -$ 42 13,080.00$ Sub-Total - 22 18 4 0 4 8 0 0 0 40 0 134 0 0 30 40 72 0 Sub-Total - 44 9,220.00$ Sub-Total - 12 2,600.00$ 40 11,400.00$ 134 46,900.00$ Sub-Total - 0 25,000.00$ Sub-Total - 70 13,210.00$ Sub-Total - 72 15,480.00$ 372 123,810.00$ Task 7 Additional Concept Refinement
7.1 Refined Land Use and Building Concepts and Recommendations 12 8 60 80 11,920.00$ 5 19 24 4,960.00$ 0 -$ 0 -$ 0 -$ 0 -$ 0 -$ 104 16,880.00$
7.2 Task Force Meeting #5 41 6 20 2,980.00$ 6 8 14 3,140.00$ 0 -$ 0 -$ 0 -$ 0 -$ 0 -$ 34 6,120.00$ Sub-Total - 16 87 6 0 11 2 70 0 0 0 0 0 00 00 00
Sub-Total - Sub-Total - 100 14,900.00$ Sub-Total - 38 8,100.00$ 0 -$ 0 -$ Sub-Total - 0 -$ Sub-Total - 0 -$ Sub-Total - 0 -$ 138 23,000.00$ Task 8 Final Options Report
8.1 Final Options Report 62 4 4 8 78 11,910.00$ 4 10 14 2,980.00$ 0 -$ 0 -$ 0 -$ 0 -$ 0 -$ 92 14,890.00$
8.2 Presentation to City Council 61 6 22 3,470.00$ 0 -$ 0 -$ 0 -$ 0 -$ 0 -$ 0 -$ 22 3,470.00$ Sub-Total - 12 2 4 6 4 0 4 1 00 0 0 0 0 0 00 00 00
Sub-Total - Sub-Total - 100 15,380.00$ Sub-Total - 14 2,980.00$ 0 -$ 0 -$ Sub-Total - 0 -$ Sub-Total - 0 -$ Sub-Total - 0 -$ 114 18,360.00$ Subtotal, Labor 810 124,930.00$ 60 191 292 61,640.00$ 122 28,570.00$ 222 77,700.00$ 0 25,000.00$ 70 13,210.00$ 72 15,480.00$ 1588 346,530.00$ Expenses 2,500.00$ 2,500.00$ 330.00$ 1,500.00 $ 6,500.00$ Total 127,430.00$ 64,140.00$ 28,900.00$ 79,200.00 $ 25,000.00 $ 13,210.00 $ 15,480.00 $ 353,030.00 $ Grand Total 353,030.00
TBD TOTAL
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ILT llT IITT rm I! u u I l J l!O 107
22-1204
REPORT TO COUNCIL
SUBJECT
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
Agenda Date: 10/18/2022
Action on Amendment No. 3 with Wallace Roberts and Todd, LLC (WRT) for the City Hall Relocation Study and Related Budget Amendment
COUNCIL PILLAR
Promote and Enhance Economic, Housing , and Transportation Development
BACKGROUND
The City is currently in the process of preparing a Precise Plan for the City's historic Downtown area.
The Downtown planning area consists of the ten city blocks located between Homestead and Benton streets, west of Lafayette Street. The goal of the Precise Plan is to promote the redevelopment of the Downtown area consistent with the vision of restoring the Downtown as an active destination within Santa Clara, consistent with the character and vibrancy of an active, historic Downtown.
The Downtown Precise Plan effort formally began in 2018 with the appointment of a community member Task Force, including organizations such as Reclaiming Our Downtown and the Old Quad Resident's Association . The City conducted a Request for Qualifications (RFQ) process in 2019 and, with the input of the Task Force, selected Wallace Roberts & Todd, LLC (WRT) to provide Downtown Precise Plan consultant services. Since then , City staff and WRT have been working closely with the Task Force on the preparation of a Precise Plan that will provide guidance for new development within the Downtown area through policies, guidelines, and illustrations that implement the community vision and o,bjectives for a vibrant, pedestrian-oriented destination. ·•3
The City's initial contract with WRT has been amended two times. Amendment No. 1 was approved by the City Council in May 2021. This first amendment to the consultant contract was to add the following services the scope of work for the Downtown Precise Plan: 1) Form Based Zoning Code and Sign Ordinance ; 2) Development Impact Fee; 3) Downtown Management Entity; and 4) additional Downtown Community Task Force Meetings . Amendment No. 2 was approved by the City Council in December 2021. The second amendment to the consultant contract added the following services to the scope of work for the Downtown Precise Plan: 1) Consultant Team Charette ; 2) Added stakeholder meetings; 3) Financial Feasibly of Land Use Options analysis; 4) Financial Memo Addendum to Existing Conditions Report; 5) Context Study; and 6) Additional Downtown Community Task Force Meetings with subconsultants.
DISCUSSION
At the May 24, 2022 City Council meeting, the Council discussed contracting with the current Downtown Precise Plan Consultant, WRT, to prepare a Financial Analysis for moving City Hall to a location within the eight blocks of the Original Downtown. This agenda item was requested through a written petition submitted by resident Mary Grizzle on behalf of the members of Reclaiming our City.of Santa Clara Page 1 of 4 Printed on 10/26/2022
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22-1204 Agenda Date: 10/18/2022
Downtown.
At the May 24th meeting, the City Council directed.staff to provide a scope of work and contract amendment with the current Downtown Precise Plan Consultant to study a City Hall relocation to downtown, including financial feasibility and strategies. In June 2022, the City Council subsequently approved the allocation of funds for the requested Study through the budget process.
Following Council direction, staff has worked with WRT to prepare a scope to study the relocation of the City Hall to the Downtown. The proposed scope is attached to this report as Attachment 2 and includes the following:
• Project Initiation
• Program Confirmation
• City Hall Economic Assessment
• Criteria and Site Comparison
• Concept Testing and Test-Fitting
• Financial Evaluation
• Concept Refinement ·
• Final Options Report
Staff is requesting that the City Council grant approval to the City Manager to amend the City's contract with WRT to add the attached sc6pe. This will allow staff and WRT to proceed with preparation of the study, consistent with prior City Council discussion. The propos~d cost for the study, $353,360 includes a portion ($28,360) that would be funded by Silicon Valley Power (SVP) to analyze multiple scenarios involving SVP office space. The remaining scope ($325,000) is consistent with the City Council's capital improvement program (CIP) budget action at the June 21, 2022 Co.uncil meeting. This Amendment No. 3 will also utilize the three-year term extension option provided in the Original Agreement, resulting in a revised termination date of December 31, 2024.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" within the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The Consultant's proposal for the scope of work has a cost of $353,360. As part of the FY 2022/23 and FY 2023/24 Capital Improvement Program budget adoption, funding in the amount of $325,000 was appropriated to the Precise Plan for Downtown. project for the City Hall Relocation Study. The remaining $28,360 is available in Silicon Valley Power's Electric Yard Buildings and Grounds project budget for facility assessment of buildings occupied by SVP.
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22-1204
Electric Utility Capital Fund
Expenditure
Electric Yard Buildings and Grounds
Transfer To
General Government Capital Fund
General Government Capital Fund
Transfer From
Electric Utility Capital Fund
Expenditure
Precise Plan for Downtown
COORDINATION
Budget Amendment
FY 2022/23
Current Increase/
(Decrease)
$2,263,136 ($28 ,360)
$0 $28,360
$0 $28,360
$325,000 $28,360
Agenda Date: 10/18/2022
Revised
$2,234,776
$28,360
$28,360
$353,360
This report has been coordinated with Silicon Valley Power, the Finance Department and the City Attorney's Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City's website and in the City Clerk's Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk's Office at (408) 615-2220, email [email protected] <mailto:clerk@santaclaraca .gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
1. Authorize the City Manager to execute Amendment No. 3 to the Agreement with Wallace Roberts and Todd, LLC (WRT) for the City Hall Relocation Study at a total cost not to exceed $1,331,706.
2. Approve the following FY 2022/23 budget amendments:
· a. In the General Government Capital Fund, recognize a transfer of $28,360 from the Electric Utility Capital Fund and increase the Precise Plan for Downtown project by $28,360 (five affirmative Council votes ); and
b. In the Electric Utility Capital Fund, establish a transfer to the General Government Capital Fund in the amount of $28,360 and reduce the Electric Yard Buildings and Grounds project by $28,360 (five affirmative Council votes required).
Reviewed by: Andrew Crabtree, Director, Community Development Approved by: Rajeev Batra, City Manager
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22-1204
ATTACHMENTS
1. Amendment No. 3 with Wallace Roberts and Todd, LLC (WRT)
2. Scope of Work - City Hall Relocation Study
3. Original Agreement and RTC19-1006
4. Amendment No, 1 and RTC21-667
5. Amendment No. 2
City of Santa Clara Page 4 of 4
Agenda Date: 10/18/2022
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-687 Agenda Date: 6/27/2023
REPORT TO COUNCIL
SUBJECT
Action on a Resolution Authorizing the Use of City Electric Forces at Various Locations
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Section 1310 of the Santa Clara City Charter, entitled Contracts on Public Works states “that every contract involving an expenditure of more than one thousand dollars ($1,000) for the construction or improvement (excluding maintenance and repair) of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds shall be let to the lowest responsible bidder.” The section further states that “the City Council may declare and determine that, in its opinion, the work in question may be performed better or more economically by the City with its own employees, and after the adoption of a resolution to this effect by at least four affirmative votes, it may proceed to have said work done in the manner stated, without further observance of the provisions of this section.”
DISCUSSION
Staff believes that the work described below is best and most efficiently performed with City forces based upon the following factors: (1) the work is limited in size and scope; (2) City forces have knowledge and training in operating and maintaining the electric system that can be leveraged to more economically perform this work; and (3) bidding out the work and contracting with a private entity would not likely result in a lower overall cost or time savings. Therefore, staff recommends that the City Council make a finding that City forces can better perform the installation of the following electric facilities and approve the use of City forces.
Estimate Number: 38703
Location: 2300 Calle de Luna
Type of Service: New Business
Description of Work: Install ±200' high voltage conductor, 6-600 A termination elbows, 30-600 A splices.
Estimated Cost: $115,747
Appropriation: Electric Utility Capital Fund (591) Project 2005 - New Business Estimate Work
Source of Revenue: Customer/Developer Contribution
Estimate Number: 37286
Location: 2920 Scott Boulevard
Type of Service: New Business
Description of Work: Relocation of an existing padmount electrical transformer.
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23-687 Agenda Date: 6/27/2023
Estimated Cost: $37,663
Appropriation: Electric Utility Capital Fund (591) Project 2005 - New Business Estimate Work
Source of Revenue: Customer/Developer Contribution
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the actions being considered are exempt from the California Environmental Quality Act (“CEQA”) pursuant to the following sections of Title 14 of the California Code of Regulations: (1) section 15302(c) (Class 2 - Replacement or Reconstruction) as the proposed work involves the replacement or reconstruction of existing utility systems and/or facilities involving negligible expansion of capacity, and (2) section 15303 (Class 3 - New Construction or Conversion of Small Structures) as the proposed work involves the construction of a limited number of small electric utility facilities.
FISCAL IMPACT
The funds to support the staff time for work performed by SVP and related construction materials for the work detailed in this report, totaling $153,410 are included in the Fiscal Year 2022/23 Capital Budget, New Business Estimate Work project in the Electric Utility Capital Fund. All referenced work will be performed with City Silicon Valley Power staff. Some work associated with encroachment permits may be performed by the Department of Public Works (DPW). DPW costs are recovered through payment of permit fees.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Determine the proposed actions are exempt from CEQA pursuant to Sections 15302 (c) and 15303 of Title 14 of the California Code of Regulations and adopt a Resolution authorizing the use of City Electric Forces for work detailed in this Report to Council located at 2300 Calle de Luna and 2920 Scott Boulevard.
Reviewed by: Manuel Pineda, Chief Electric Utility Officer Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Resolution - Use of City Electric Forces
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Resolution/Use of City Electric Forces Page 1 of 2
Rev: 03-09-18
RESOLUTION NO. _____
A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA
AUTHORIZING THE USE OF CITY ELECTRIC FORCES
PURSUANT TO CHARTER SECTION 1310
BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
WHEREAS, the section 1310 of the City of Santa Clara Charter requires all contracts involving an expenditure of over $1,000 for the construction or improvement (excluding maintenance and repair) of a public works project to be let to the lowest responsible bidder; WHEREAS, City Charter section 1310 permits the City of Santa Clara (“City” or “City of Santa Clara”) to use its own employees if the City Council , by motion passed by at least four affirmative votes, determines that the public works may be done better or more economically by the City’s own employees, and, upon such determination, the City may proceed to have the public works project completed without further observance of Charter section 1310; WHEREAS, the City’s Electric Department desires to perform certain public works, as set forth in the Report to Council, dated June 27, 2023, by its own employees; and, WHEREAS, the City’s Electric Department has presented evidence supporting that the work in question may be performed better or more economically by the City with its own employees.
NOW THEREFORE, BE IT FURTHER RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
1. The City Council of the City of Santa Clara does hereby declare and determine that the public works project set forth in the 23-687 Report to Council, attached hereto and incorporated by this reference, may be performed better or more economically by the City with its own employees.
///
///
Resolution/Use of City Electric Forces Page 2 of 2
Rev: 03-09-18
2. Effective date. This resolution shall become effective immediately.
I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED
AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A REGULAR MEETING THEREOF HELD ON THE ___ DAY OF _________, 2023, BY THE FOLLOWING VOTE:
AYES: COUNCILORS:
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
ATTEST: ______________________________
NORA PIMENTEL, MMC
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
Attachments incorporated by reference: June 27, 2023, Report to Council No. 23-687 City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-830 Agenda Date: 6/27/2023
REPORT TO COUNCIL
SUBJECT
Action to Adopt a Resolution to Provide Santa Clara Small Businesses Reporting 49 or Fewer Employees a One-Time Subsidy to Help Offset Costs of Modernized Business License Taxes Using Existing Silicon Valley Chamber of Commerce Settlement Funds Up to $330,000
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development Enhance Community Engagement and Transparency
BACKGROUND
On September 7, 2021, the City Council approved the appropriation of funds from the Silicon Valley Chamber of Commerce (Attachment 1). These funds were received as part of a settlement agreement reached between the City and the Silicon Valley Central Chamber of Commerce (“SVCCC”) in June 2021. As part of the settlement the City received funds in the amount of $330,000 for outreach and assistance to small businesses in Santa Clara.
On July 12, 2022, the City Council took formal action to submit to Santa Clara voters a Business License Tax Modernization Measure as part of the November 2022 General Election. During that discussion, staff included details of several components of the business tax intended to ensure equity and the protection of small businesses including a one-time subsidy for businesses for Santa Clara companies reporting 49 or fewer employees (Attachment 2).
On November 8, 2022, nearly 60% of Santa Clara Voters approved Measure H to update the City’s Business License Tax program. The new rates will go into effect on July 1, 2023 and affect nearly 6,100 businesses in Santa Clara. Information about the revised program can be found on at <https://www.santaclaraca.gov/our-city/departments-a-f/finance/business-license-tax-2023-update>.
DISCUSSION
During the outreach process related to the proposed measure, a core value that was identified by stakeholders and the City Council was the importance of mitigating the impact on small businesses in Santa Clara.
With that in mind, staff began to explore various options on how to mitigate the impact of the new fee structure on small businesses to ease the initial transition. One solution that was identified early on was the availability of funds in the amount of $330,000 in the settlement agreement with the Silicon Valley Chamber of Commerce that had been earmarked for the purpose of providing outreach and support to small businesses. The purpose of this report is to request authorization to allocate that funding to support a one-time credit to Santa Clara businesses reporting 49 or fewer employees.
This subsidy would be applied as a credit during the 2023/24 fiscal year renewal process starting on City of Santa Clara Printed on 6/22/2023Page 1 of 3
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23-830 Agenda Date: 6/27/2023
July 1. The recommended subsidy aligns with the outlined use of those funds for outreach and assistance to small businesses in Santa Clara.
As shown in Table 1, 5,700 of the approximately 6,100 total number of businesses in Santa Clara would be eligible to receive a one-time subsidy with an estimated cost of $323,190. It should be noted that the number of businesses and employee counts are based on the best information at the time. The actual subsidy provided, and number of businesses, will vary based on actual counts at the time of the business license tax renewal. Eligible businesses will be required to have an office located in the City of Santa Clara and funds will be disbursed on a first come, first serve basis until the $330,000 is exhausted.
Table 1: Estimated Tax and Proposed Subsidy by Employee Range Employee
Range
# of
Businesses
Estimated
Business Tax
Revenue
Average Tax
per Business
Subsidy per
Business
Total
Subsidy
0-4 3,838 $ 408,105 $ 106 $ 30 $115,140
5-9 842 279,675 332 75 63,150
10-19 559 360,855 645 100 55,900
20-49 445 610,920 1,373 200 89,000
Total 5,684 $323,190
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
Funding in the amount of $330,000 was received in FY 2021/22 and carried over as those funds remained unspent. A separate action is included in the FY 2023/24 budget adoption on the June 27, 2023 City Council agenda to carry these unspent funds to FY 2023/24 for the purposes recommended in this report.
COORDINATION
This report was coordinated with the City Attorney’s Office and Finance Department.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.
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23-830 Agenda Date: 6/27/2023
RECOMMENDATION
Adopt a Resolution to provide a one-time subsidy to small businesses located in Santa Clara reporting 49 or fewer employees, applied upon business license tax renewal for Fiscal Year 2023/24, using existing Silicon Valley Chamber of Commerce settlement funds on a first come first serve basis in an amount not to exceed $330,000.
Reviewed by: Cynthia Bojorquez, Assistant City Manager
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. RTC 21-1134 Silicon Valley Chamber of Commerce Funds
2. July 12, 2022 City Council Business License Tax Modernization Presentation Slide 5
3. Resolution
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
21-1134 Agenda Date: 9/7/2021
REPORT TO COUNCIL
SUBJECT
Action on the Appropriation of Funds from the Silicon Valley Central Chamber of Commerce and Related Budget Amendment
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development Enhance Community Engagement and Transparency
BACKGROUND
On May 22, 2018, Council provided direction to staff to begin an audit of the Convention Center and Convention-Visitors Bureau and the City hired TAP International to complete a performance audit of the Santa Clara Convention Center (SCCC) and the Convention-Visitors Bureau (CVB). To date, TAP International has completed three audits that have been presented to Council.
At the September 18, 2018 Council meeting, TAP International presented the analysis and findings of the performance audit entitled "Santa Clara Convention Center and Convention-Visitors Bureau:
Restructuring Operations Can Strengthen Accountability, Performance and Revenue". The audit revealed while the fiscal health of the SCCC and CVB was good when evaluated separately and received high customer satisfaction scores, the audit also revealed serious failures to manage public assets with appropriate stewardship, accountability, and transparency by the Chamber.
At the November 27, 2018 Council meeting, TAP International presented the analysis and findings of the performance audit entitled “City of Santa Clara Tourism Improvement District - Governance, Internal Controls and Oversight Need Attention”. The findings revealed similar issues found in the previous audit including the need for updated policies and improved record keeping as the Fiscal Agent of the Tourism Improvement District (TID).
At the November 12, 2019 Council meeting, TAP International presented the analysis and findings of the financial audit entitled “Contract Close Out Report: Convention and Visitor’s Bureau”. The audit revealed the need for the City to receive reimbursement from either the Chamber, CVB, or the Tourism Improvement District reserves based on the nature of the expenditures and the balances at the end of the Chamber’s agreement with the City. TAP International presented nine recommendations for Council consideration and Council direction was referred to Closed Session under Anticipated Litigation.
DISCUSSION
The City Council authorized discussion with the new Chamber executive staff to reach a compromise on the amounts owed as identified by the audit. A settlement was reached between the City and the Silicon Valley Central Chamber of Commerce (“SVCCC”) in June 2021, based on authority provided City of Santa Clara Printed on 9/14/2021Page 1 of 3
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21-1134 Agenda Date: 9/7/2021
by Council in closed session. The settlement agreement in the amount of $330,000 to be paid to the City was executed on July 12, 2021 (Attachment 1 Settlement Agreement). SVCCC will submit four equal payments of $82,500 within 10 days from the beginning of each quarter, the first of which has already been made.
Funds will be managed by the City Manager’s Office and used to improve outreach and assistance to small businesses in Santa Clara.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
The recommended budget action recognizes the settlement funds of $330,000 and appropriates those funds to the City Manager’s Office to be used to improve outreach and assistance to small businesses in Santa Clara.
Budget Amendment
FY 2021/22
Current Increase/
(Decrease)
Revised
General Fund
Revenue
Revenue from Other
Agencies - Silicon Valley
Central Chamber of
Commerce
$0 $330,000 $330,000
Expenditures
City Manager’s Office $5,442,069 $330,000 $5,772,069
The budget amendment recommended above requires five affirmative Council votes to appropriate additional revenue.
COORDINATION
This report has been coordinated with the City Attorney’s Office and the Finance Department.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.
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21-1134 Agenda Date: 9/7/2021
RECOMMENDATION
Consistent with City Charter Section 1305, “At any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least five members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not included in the budget,” approve the FY 2021/22 budget amendment in the General Fund to recognize and appropriate revenue in the amount of $330,000 to the City Manager’s Office operating budget (five affirmative Council votes required to appropriate additional revenue) .
Reviewed by: Ruth Mizobe Shikada, Assistant City Manager Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Settlement Agreement
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5 Business Tax Alternative #1:
Flat Tax
• Projected Revenue: Approximately $6 million (includes rental); Effective July 1, 2023, Rolling Implementation
• Flat tax of $45 per employee or $15 per rental unit
• Business with gross receipts < $5,000 exempt
• Cap of $350,000
• CPI, with cap of 5%
• Subsidies for companies
Employee
Range
Subsidy per
Business
0-4 $ 30
5-9 75
10-19 100
20-49 200
{:~~, , City of
'ti 'YJ Santa Clara ~ ~ -0 ----- The Cent er of What' s Possible Resolution Page 1 of 2
Rev: 6/27/23
RESOLUTION NO. __________
A RESOLUTION OF THE CITY OF SANTA CL ARA,
CALIFORNIA, FOLLOWING PASSAGE OF THE BUS INESS
LICENSE TAX MODERNIZATION MEASURE AS PART OF THE
NOVEMBER 202 2 BALLOT TO PROVIDE SANTA CLARA
SMALL BUSINESSES WITH A ONE- TIME SUBSIDY FOR
BUSINESSES REPORTING 49 OR FEWER EMPLOYEES WITH
EXISTING FUNDS PROVIDED AS PART OF THE SILICON
VALLEY CENTRAL CHAMBER OF COMMERCE SETTLEMENT
AGREEMENT
BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
WHEREAS, on September 7, 2021, the City Council approved the appropriation of funds from the Silicon Valley Chamber of Commerce as part of a settlement agreement reached between the City and the Silicon Valley Central Cha mber of Commerce (“SVCCC”) in June 2021, based on authority provided in closed session;
WHEREAS, as part of the settlement the City received $330,000 , dedicated for outreach and assistance to small businesses in Santa Clara;
WHEREAS, on July 12, 2022, as part of the discussion and adoption of a resolution calling for a Municipal General Election, the City Council voted to submit to the voters a Business License Tax Modernization Measure as part of the November 2022 General Election. During that discussion, staff inc luded details of several components of the business tax to ensure equity and the protection of small businesses. A one -time subsidy for businesses that would be included for Santa Clara companies reporting 49 or fewer employees was presented for consideration; and
WHEREAS, on November 8, 2022, nearly 60% of Santa Clara Voters approved M easure H to update the City’s Business License Tax program. The new rates will go into effect on July 1, 2023; and,
NOW THEREFORE, BE IT FURTHER RESOL VED BY THE CITY OF SANTA CLARA AS FOLLOWS:
Resolution Page 2 of 2
Rev: 6/27/23
1. The City of Santa Clara shall provide a one- time subsidy credit upon business license tax renewal during the 2023/24 fiscal year.
2. The subsidy provided shall be based on the number of employees reported by a business and in accordance with the amounts listed below Employee Range Subsidy per Business
0-4 $ 30
5-9 75
10-19 100
20-49 200
3. Eligibility. Businesses eligible for the subsidy will be required to have an office located in the City of Santa Clara. Funds will be credited for business license tax renewal on a first come, first serve basis until the $330,000 is exhausted.
4. City staff is a uthorized and directed to develop appropriate administrative pol icies to implement this subsidy program.
5. Effective date. This resolution shall become effective immediately.
I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED
AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A R EGULAR MEETING THEREOF HELD ON THE 27th DAY OF JUNE, 2023, BY THE FOLLOWING VOTE:
AYES: COUNCILORS:
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
ATTEST: __________________________
NORA PIMENTAL, MMC
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
Attachments incorporated by reference: None
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-756 Agenda Date: 6/27/2023
REPORT TO COUNCIL
SUBJECT
Approve a Silicon Valley Power One-Time Climate Credit for Small Commercial (C-1) Customers
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On May 23, 2023 (Council Report 23-479), the City Council authorized a 5% mid-year increase to the electric rate schedules of Silicon Valley Power (SVP) for all classes of customers, effective July 1, 2023. This proposed increase was necessary due to the spike in market energy prices and market natural gas prices which mostly occurred in December 2022 and January 2023. This spike in natural gas prices caused unforeseeable and significant increases in SVP’s power purchase and production costs.
As discussed at the May 23 Council meeting, as part of the rate increase staff will also be implementing a one-time efficiency/climate residential credit of $30 that is intended to help cover the increased costs for all residential customers. The credit is funded from existing Green House Gas reduction funds which are derived from the sale of allowances under the Cap-and-Trade Program. A number of utilities, including PG&E, provided similar credits. These credits are not typical for SVP, and the only similar credit SVP has implemented was to provide customer relief during the Covid-19 pandemic.
During its consideration of the mid-year rate increase, the City Council suggested staff develop a similar small commercial (C-1 billing rate) credit.
DISCUSSION
Even with the approved increase, SVP’s rates will remain significantly below PG&E’s current rates (and lower than any other utility with more than 10,000 customers). For the small commercial customers (C-1 rate), SVP rates are 35% lower than PG&E. For a typical small business (1000 kWh) the proposed increase is approximately $11.00 a month for a new total of $228.88.
In comparison, for a large commercial/industrial customer, the typical increase will be an additional $3,912 a month and for a large industrial customer the typical increase will be $14,361 a month.
For the largest SVP customers, the 5% increase will range from approximately $50,000 - $400,000 additional a month.
Proposed Credit
Staff reviewed three possible credit options for the approximately 6,300 small business customers.
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23-756 Agenda Date: 6/27/2023
· $30 total credit which would cover approximately 2.7 months of the approved 5% increase. · $50 total credit which would cover approximately 4.5 months of the approved 5% increase. · $70 total credit which would cover approximately 6.4 months of the approved 5% increase.
As comparison, the $30 residential credit covers approximately 10 months of the approved 5% increase for the average residential customer and 4 months for a high-use residential customer.
Proposed Credit
Staff is proposing to move forward with a one-time $70 dollar credit from Green House Gas funds.
This credit aligns with similar relief provided to residential customers, and for the average small business, it fully covers the additional cost for the six months of a mid-year increase. It is expected the credit will appear on customers’ bills in the August/September timeframe.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(4) of Title 14 of the California Code of Regulations in that the proposed action is a fiscal activity which does not involve any commitment to a specific project that may result in a potentially significant physical impact on the environment .
FISCAL IMPACT
The one-time $70 C-1 credit will cost approximately $441,000 and will be funded from existing Green House Gas reduction funds in the Mandated Program Costs budget in the Electric Operating Grant Trust Fund. California Air Resources Board (CARB) provides these allowances to publicly owned utilities, like SVP, to mitigate the Cap-and-Trade Program’s compliance costs. The proposed credit is an authorized use of the proceeds of CARB allowances.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Approve a Silicon Valley Power one-time $70 Climate Credit for all C-1 customers.
Reviewed by: Manuel Pineda, Chief Electric Utility Officer Approved by: Jōvan D. Grogan, City Manager
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-734 Agenda Date: 6/27/2023
REPORT TO COUNCIL
SUBJECT
Overview of the Citywide Risk Assessment and Proposed 2023 and 2024 Internal Audit Work Plans
BACKGROUND
Per Section 909 of the City Charter, and SCCC Section 2.29.010, the City Auditor’s duties and responsibilities include conducting in-depth financial and performance audits, overseeing the City’s performance management system, auditing and approving all bills, invoices, payrolls, demands or charges against the City government before payment and, with the advice of the City Attorney, making reports to the City Council as to the regularity, legality and correctness of such claims, demands or charges. The City Auditor’s Office conducts its work under the auditing standards prescribed by the Institute of Internal Auditors (IIA). The IIA International Standards for the Professional Practice of Internal Auditing (Standards) requires the City Auditor’s Office to “establish a risk-based plan to determine the priorities of the internal audit activity, consistent with the organization’s goals” and consider the input from senior management and a governing board.
DISCUSSION
The City Auditor’s Office engaged Baker Tilly US, LLP (Baker Tilly) to conduct a citywide risk assessment and prepare an annual audit work plan for the next five years. The purpose of the internal audit function’s risk assessment is to develop an audit plan that assigns internal audit resources to the activities that add the most value to the City. The risk assessment process involves identifying and measuring risks associated with the audit universe (a list of specific departments, functions, processes, programs, etc. that can be subject to an audit, i.e. auditable units). Risk is defined as “the possibility of an event or condition occurring that will have an impact on the ability of an organization to achieve its objectives.” The risk assessment is an ongoing process and will be updated each year. These updates may alter previously identified audit plans based on these ongoing assessments.
This report summarizes Baker Tilly’s risk assessment methodology, analysis, and results. The 2023- 2024 audit plan proposed in this report is based on the results of this risk assessment. The risk assessment involved collaboration with City Council and executive management from 14 main departments across the organization. In conducting the risk assessment, the following activities occurred:
· Developed an understanding of the City’s environment, businesses, and objectives · Met with members of City Council and the Executive Management Team representing the major operations and administrative functions of the City · Reviewed key documentation such as the City Council Priority Matrix, the annual budget documents, financial statements, departmental strategic plans, and prior audit reports City of Santa Clara Printed on 6/22/2023Page 1 of 3
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· Evaluated the results of interviews and documentation reviews and considered industry factors to identify areas of risk to the City
In developing the 2023 and 2024 Audit Plan, the following were considered:
· Risk assessment - Internal audit activities to target high and moderate risk areas based on the results of the risk assessment
· Adding value - Internal audit activities to add value through independent and objective analysis · City Council - The City Auditor’s Office reports to the City Council and seeks input on audit priorities
· Coverage and other audits - Consideration of prior and other audits as well as pervasiveness of the process or control to ensure audit coverage and to avoid duplication of efforts · Scheduling - Consideration of the timing of an audit and other on-going initiatives to avoid putting an undue burden on City staff that may exacerbate the risk at hand or other interrelated risks
Staff and Baker Tilly, LLC presented the results of the risk assessment to the Audit Committee and presented the audit work plan for input and approval. After discussion, the Audit Committee recommended staff proposed revisions so that items from the 2024 work plan could be advanced to the current year workplan. The Committee accepted the report and proposed workplan and moved to bring it to the City Council for note and file.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environment Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
Costs associated with the preparation of this report are included in the City’s FY 2022/23 Adopted Operating Budget.
COORDINATION
This report has been coordinated with the City Manager’s Office and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Note and file the citywide risk assessment report from Baker Tilly, LLC and note the proposed 2023 and 2024 audit work plans as approved by the Audit Committee.
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Reviewed and Approved by: David Noce, Audit Manager
ATTACHMENTS
1. City of Santa Clara - Citywide Risk Assessment and 2023 and 2024 Audit Work Plan City of Santa Clara Printed on 6/22/2023Page 3 of 3
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1 February 3, 2023
City of Santa Clara
City Auditor’s Office
Citywide Risk Assessment and Proposed 2023 – 2024
Audit Work Plan
((; bakerti Uy
Contents
Baker Tilly US, LLP, trading as Baker Tilly, is an independent member of Baker Tilly International. Baker Tilly International Limited is an English company. Baker Tilly International provides no professional services to clients. Each member firm is a separate and independent legal entity, and each describes itself as such.
Baker Tilly US, LLP is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly International or act on Baker Tilly International’s behalf. None of Baker Tilly International, Baker Tilly US, LLP nor any of the other member firms of Baker Tilly International has any liability for each other’s acts or omissions. The name Baker Tilly and its associated logo is used under license from Baker Tilly International Limited.
INTRODUCTION ............................................................................................................... 1 RISK ASSESSMENT APPROACH .................................................................................. 3 RISK ASSESSMENT RESULTS ...................................................................................... 4 PROPOSED 2023 - 2024 AUDIT PLAN ........................................................................... 9 APPENDICES ................................................................................................................. 11
1 Introduction
Overview
Background
The California Government Code Section 1236 requires all cities that conduct audit activities to conduct their work under the general and specified standards prescribed by the Institute of Internal Auditors (IIA) or the Government Auditing Standards (GAO) issued by the Comptroller General of the United States, as appropriate. The internal audit function will govern itself by adh erence to the mandatory el ements of the Internat ional Standards for the Professional Practice of Internal Auditing (the Standards). According to the IIA Standard 2010, the head of internal audit function “must establish a risk-based plan to determine the priorities of the internal audit activity, consistent with the organization’s goals” and consider the input from senior management and a governing board.
The City Auditor’s Office (CAO) engaged Baker Tilly US, LLP (Baker Tilly) in 2022 to conduct a citywide risk assessment and prepare an annual audit work plan for five years. The purpose of the internal audit function’s risk assessment is to develop an audit plan that assigns internal audit resources to the activities that add the most value to the City of Santa Clara (the City). The risk assessment process involves identifying and measuring risks associated with the audit universe (a list of specific departments, functions, processes, programs, etc. that can be subject to an audit, i.e. auditable units). Risk is defined as “the possibility of an event or condition occurring that will have an impact on the ability of an organization to achieve its objectives.”1
Audit Planning
This report summarizes Baker Tilly’s risk assessment methodology, analysis, and results. The 2023–2024 audit plan proposed in this report is based on the results of this risk assessment. T he risk assessment involved collaboration with City Council and executive management from 14 main departments across the organization.
In conducting the 2022 risk assessment, we performed the following:
Developed an understanding of the City’s environment, businesses, and objectives Met with members of City Council and the Ex ecutive Management Team representing the major operations and administrative functions of the City
Reviewed key documentation such as the City Co uncil Priority Matrix, the annual budget documents, financial statements, departmental strategic plans, and prior audit reports Evaluated the results of interviews and documentation reviews and considered industry factors to identify areas of risk to the City
In developing the 2023–2024 Audit Plan, we considered the following:
Risk assessment – Internal audit activities to target high and moderate risk areas based on the results of the risk assessment
Adding value – Internal audit activities to add value through independent and objective analysis City Council – The CAO reports to the Ci ty Council and seeks input on audit priorities Coverage and other audits – Consideration of prior and other audits as well as pervasiveness of the process or control to ensure audit coverage and to avoid duplication of efforts Scheduling – Consideration of the timing of an audi t and other on-going initiatives in order to avoid putting an undue burden on City staff that may exacerbate the risk at hand or other interrelated risks
1 Rick A, Wright Jr., CIA, “The Internal Auditor’s Guide to Risk Assessment” The Institute of Internal Auditors Research Foundation (IIARF), 2018 (G bakertilly
2 INTRODUCTION
Organizational Strengths
Through the risk assessment, we observed certain strengths of the City. Key strengths include:
Dedication to the citizens and business community
High value on financial stability and public safety
Focus on excellence and affordability
Highly professional and dedic ated management and staff
Risk Assessment Process Considerations
The starting point of the internal auditing is to conduct a risk assessment that is the basis for determining the internal audit activities. However, it is not a one-size-fits-all process. The scope and complexity of risk assessment are affected by various factors such as the maturity level of the internal audit function’s products and services, the organization’s enterprise risk management (ERM) efforts, coordination with other monitoring and risk management functions, and the stakeholders’ expectations. The best practice is to focus on risks related to the achievement of the organization’s strategies and objectives. The internal audit risk assessment needs to be conducted at least annually, and internal auditors should monitor the environment for changes and emerging risks.
In addition to the annual macro-level risk assessment, the internal audit function is required to perform an engagement-level risk assessment when starting each audit listed in the approved audit plan. The IIA Standard 2200 states, “Internal auditors must develop and document a plan for each engagement, including the engagement’s objectives, scope, timing, and resource allocations. The plan must consider the organization’s strategies, objectives, and risks relevant to the engagement.”
Risk assessment can also be conducted as part of risk management as one of the essential elements of organizational governance. ERM is defined as “the culture, capabilities, and practices, integrated with strategy- setting and performance, that organizations rely on to manage risk in creating, preserving, and realizing value.” 2 ERM is more than having a list of all the risks for an organization. The COSO’s ERM principles covering governance to monitoring (including defining risk appetite and implementing risk responses), apply to all levels and functions of an organization although management has overall responsibility for managing risks and a governing body has an oversight role. The internal audit function may leverage ERM information, if available, for efficiency and quality of its risk assessment.
2 “COSO Enterprise Risk Management-Integrating with Strategy and Performance”, The Committee of Sponsoring Organizations of the Treadway Commission (COSO), 2017
3 Risk Assessment Approach
Baker Tilly’s risk assessment approach consisted of four phases as illustrated in the graphic below.
2022 RISK ASSESSMENT PHASES
Planning
Worked with the CAO to determine the appropriate approach to plan and perform the risk assessment
Scheduled the interviews with City Coun cil members and Executive Management Team (EMT) members
Information
Gathering
Reviewed the key documents such as Council Priority Matrix, the biennial budget documents, the annual comprehensive financial report, departmental strategic plans, audit reports, the information on the City’s website and other relevant documents. Interviewed over 30 individuals to identify the events and conditions that may affect the achievement of objectives
Distributed a questionnaire to the EMT member s- to gather additional information on each auditable unit
Analysis
Obtained and considered the financial data, budget data, employee turnover data, application inventory, and claims information
Scored the auditable units in the risk ma trix based on the likelihood and the impact3 of potential adverse events
o Each of the auditable units received scor es for various risk factors related to the likelihood or impact (defined in Appendix A)
o Risk factor scores were summed to create a single score for the auditable unit Identified potential internal audit activities for the auditable units with high risk scores Reporting
Summarized the approach and resu lts of the risk assessment
Baker Tilly conducted the first risk assessment by interviewing all City Council members and EMT members and reviewing the key documents and data. Our risk assessment process primarily measured inherent risk (the risk before mitigating controls/factors are applied) in the City’s current environment.
The next risk assessment will include an update to this risk assessment in accordance with the contract. For the second-year risk assessment, Baker Tilly will interview the EMT members and also conduct a risk assessment survey to obtain input from other members of management. For the third and fifth year, the existing audit plan will be evaluated based on interviews with City audit staff and amended if necessary. For the fourth year, a full risk assessment and a survey will be conducted.
3 Likelihood is the possibility that an event will occur. Impact is the extent to which an event might affect an organization. (G bakertilly
Phase I Phase II Phase Ill Phase IV
Planning Information Analysis Reporting
gathering
ra .. % RI
Ongoing project management and collaboration
4 Risk Assessment Results
Citywide Key Risk Areas
Baker Tilly performed interviews with members of City Council and the Executive Management Team. During these interviews, Baker Tilly asked them to describe the areas they view to be the top five risks facing the City overall, regardless as to whether it is specific to their area of focus/department or not. The following is a list of risk themes identified in those interviews:
- Strategic Workforce Planning
- Budget and Financial Performance
- Compliance and Legal Risks
- Organizational Governance
- Information Technology & Cybersecurity
Strategic Workforce Planning
- Employee Recruitment & Retention – Attracting and retaining high-performing employees is a complex challenge facing the City. Recent legislation such as the Public Employee Pension Reform Act of 2013 (PEPRA) made public employment less attractive in the State of California as retirement benefits became less generous. In addition, the City’s high cost of living limits the applicant pool as many employees and prospective employees commute long distances to work for the City. - Employee Turnover – The City faces potential risk of employee turnover in a variety of critical positions due to retirement eligibility, perceived or actual lack of upward mobility, and competitiveness of compensation and benefits in comparison to the cost of living. Employee turnover for any reason creates gaps in institutional knowledge. Succession planning, documenting standard operating procedures and cross training are key considerations for entities facing this dynamic.
Financial
- Revenue Generation – Although the City has many sources of revenue, some of which are healthy and stable, the City also relies on economically sensitive revenues such as sales tax and transient occupancy tax. The City has been a hub for the world’s top technology firms and owns Levi’s Stadium and Convention Center, which bring in visitors to hotels, restaurants, and retail. These visitors and daytime population help feed the sales and transient occupancy taxes. The COVID-19 pandemic has highlighted weaknesses in the reliability of this revenue structure. - Funding – The City faces difficult budget reductions necessary to bring the budget into balance. As a result, some essential accounts, programs, and capital projects remain unfunded.
Compliance/Legal
- Compliance with Laws, Regulations, and Contracts – The City has a complex regulatory compliance environment, in which the City must comply with numerous laws and regulations, local ordinances, contracts and grant agreements, and policies and procedures. Failure to track and update relevant laws and regulations may lead to external audit findings, fines, reputational harm and other negative outcomes.
- Litigation – The City has been involved in multiple lawsuits and settlements in recent years.
Governance
- Leadership – Effective local government governing body and officers must think and act strategically and collaborate with a network of community entities and institutions at the national, state, and local level. Operating in an environment where there are numerou s stakeholders and key partners can strain the governance system and impair the ability to meet citizens’ needs and organizational objectives. (G bakertilly
5 RISK ASSESSMENT RESULTS
Information Technology
- Cybersecurity – Ransomware and malware attacks are growing threats facing all municipal governments. These cyberattacks may result in significant financial losses, costly service disruption, and loss of information. The City faces similar threats on a daily basis and seeks to ensure that its information security practices and controls mitigate these risks.
Department Descriptions and Key Risk Areas
When identifying risks for the City, Baker Tilly considered each department and associated risks. The concerns listed by the interviewees included limited staffing and succession planning, specific accounts or programs with limited or no funding, aged infrastructure, lawsuits, and drought. Based on these concerns, departments’ functions, and their inherent risks, Baker Tilly identified the auditable risk areas for each department. Below is an overview of the City’s departments and their key risk areas.
City Attorney’s Office
The City Attorney’s Office provides hearing and trial counsel services and other legal advisory services such as
review/negotiation of contracts, preparation of resolutions and ordinances, attendance to all meetings of the City Council, and response to legal inquiries.
Key Risk Areas
- Case management
- Conflict of interest monitoring
City Clerk’s Office
The Elected City Clerk administers City elections. The Assistant City Clerk is responsible for various day-to-day operations, including attending and maintaining records of City Council and public meetings; complying with Records Retention Schedule; responding to Public Records Act requests, and administering campaign and disclosure laws.
Key Risk Areas
- Public Records Act compliance
- Records retention program
City Manager’s Office
The City Manager’s Office supports the City Council with policy decision making, provides direction and support to all City departments, and is responsible for strategic planning, citywide emergency preparedness, economic development, community outreach and engagement, property management, special
projects, and implementation of Council direction. It also provides general administration for citywide programs, citywide strategic programs and initiatives (such as sustainability), convention center, and stadium operations.
Key Risk Areas
- Property management
- Convention center operation
- Stadium operation
- Business continuity plan for the City
departments
Community Development Department
The Community Development Department’s primary objectives are maintenance of the General Plan, proactive land use planning to meet the future needs of the community, delivery of professional services such as development review and permitting and inspection services, and administration of programs related to affordable housing.
Key Risk Areas
- Building permitting & inspection
- Housing inspection
- Development projects review
- Code enforcement
- Affordable housing program
Electronic Utility Department
The Electric Utility Department (Silicon Valley Power, or SVP) owns power generation facilities, has investments in joint ventures that produce electric power, and trades power on the
Key Risk Areas
- Power Purchase Agreements
- Renewable energy programs
6 RISK ASSESSMENT RESULTS
open market. SVP delivers electricity to the residents and businesses and provides diverse services such as dispatch services to all City departments, outdoor Wi-Fi services, dark fiber leasing service, and energy efficiency programs.
- Procurement and contract management
- Work Order and Asset Management
- Cybersecurity
- Construction project controls
Finance Department
The Finance Department administers the City’s financial affairs.
Departmental functions include budget; general accounting; financial reporting; collection of taxes, fees, special assessments, and utility charges; investment; procurement; the City Warehouse operations; and debt management.
Key Risk Areas
- Procurement Card Administration
- Vendor master file
- Timesheet processing
- Utility billing and collection process
- Investment management
- Warehouse/inventory management
Fire Department
The Fire Department provides fire and emergency services and organized into Administration and six divisions: Field Operations (first responders providing immediate services); Emergency Medical Services (first responder medical services); Community Risk Reduction (fire prevention activities and hazardous materials regulation by providing plan review and inspection services); Training (State and Federal certification programs);
Administrative (grant management, payroll processing, budget development, etc.); Office of Emergency Services (emergency preparedness activities and disaster management plans).
Key Risk Areas
- Overtime
- Field inspection services
- Training
- Emergency medical services
Human Resources Department
The Human Resources Department is responsible for Benefits, Compensation, Recruitment, Testing, Classification, Employee and Labor Relations, Equal Employment Opportunity, Workers Compensation/Safety, and Employee development. The
department also negotiates the Memorandum of Understanding agreements with bargaining units.
Key Risk Areas
- Staff development and succession
planning for the City departments
- Workers' Compensation and Safety
- Employee records management
Information Technology Department
The Information Technology Department's IT service provider provides most IT services including enterprise computing (City data centers and network), service desk, end-user support, application management, configuration and maintenance of over 150 applications, and security services (including security incident and event management). The City IT employees are responsible for IT governance and budget.
Key Risk Areas
- Cybersecurity Assessment
- Managed Service Provider (MSP)
contract management
- Application portfolio management
- Data management
Library Department
The Library Department has three libraries throughout the City and also provides Bookmobile service. It offers physical and digital collection of books/movies/music, technology and information access, literacy instruction, and programming such as young adults activities. The Library Department establishes
Key Risk Areas
- Memorandum of Understanding with the
Santa Clara Library Foundation &
Friends
- Fee collection
- Purchasing
7 RISK ASSESSMENT RESULTS
partnerships with community organizations to leverage
resources.
Parks and Recreation Department
The Parks and Recreation Department consists of the Parks Division (planning, development, operation, maintenance and rehabilitation of City parks); the Recreation Division (classes and programs); the Cemetery Division (maintaining 33,000 interment sites), and the Senior Nutrition Program Division (a meals program). The Department offers the public with facility rentals, community services, cultural programs, and special events.
Key Risk Areas
- Park infrastructure
- Park revenue
Police Department
The Police Department is broken down into four divisions. The Field Operations Division is comprised of uniformed personnel that respond to calls for service and initiate proactive contacts.
The Investigations Division, which includes the Records Unit, handle follow-up investigations and bring cases forth for criminal prosecution. The Special Operations Division oversees law enforcement services for any major event within the city, including Levi’s Stadium. The Administrative Services Division encompasses the department’s Training Unit, School and
Community Services, and 911-Comunucations Center.
Key Risk Areas
- Overtime
- Body-worn camera
- Use of force policies
- Evidence processing and storage
- Case management
Department of Public Works
The Department of Public Works is responsible for design, construction, and maintenance of the City infrastructure. The five divisions for engineering services are Administration, Traffic, Design, Land and Property Development, and Field services divisions. Operation and maintenance is provided by Facilities Services, Streets, and Feet Management divisions.
Key Risk Areas
- Construction project controls
- The Americans with Disabilities Act
(ADA) compliance
- Maintenance service requests
- Grant management
Water and Sewer Utilities Department
The Water and Sewer Utilities Department provides planning, design, construction, maintenance, and operation of the City’s water distribution system, sewer collection system, and recycled water system. The City jointly owns the San Jose-Santa Clara Regional Wastewater Facility.
Key Risk Areas
- Construction project controls
- Water conservation and sustainability
programs
- Rate setting practices
- Work order and asset management
8 RISK ASSESSMENT RESULTS
Overall Risk Scoring Distribution
Baker Tilly structured the audit universe
based on the department/division/program
from the budget document and
management’s feedback, which resulted in
124 auditable units (Appendix B). We scored
them based on the information gathered for
each risk factor related to the likelihood,
impact, or fraud. Appendix A lists the risk
factors, definitions, and scoring method. The
maximum score for an auditable unit is 12.
The following chart shows the distribution of
overall risk scoring.
City Department Risk Heat Map
A risk heat map is a common tool to plot risks or auditable units in order to measure their relative risks in terms of impact and likelihood. The risk heat map for the City below illustrates the City’s departments based only on the highest risk division/program within each department, and therefore, it represents only 14 out of 124 auditable units. The departments toward the upper right corner of the heat map represent those with higher possibilities of greater effect. The size of a bubble indicates the fraud risk factor score.
"'C
0 0
High
..c Moderate
Q)
~
:::i
Low
Low
Low
(Score O -5.99)
Low Moderate
(6- 6.99)
Moderate
(7 - 7.99)
High Moderate
(8-8.99)
High
(9 - 12)
Illustration of the departments based on the highest risk division/program within each department • Development
Finance
Water & Sewer
Moderate High
Impact
9 Proposed 2023 - 2024 Audit Plan
Summary
The proposed audits and CAO projects for 2023 through 2024 are listed in the next page. The projects were selected from the auditable units that were rated as High or Moderate as a results of the risk assessment. The selection was made based on some factors such as risk rating, the pervasiveness of the process or control, the audit coverage, the timing of projects, and the value-adding activities that help the City enhance the ability to manage risks, strengthen accountability, and improve efficiency and effectiveness. The proposed projects include the following:
Efficiency improvement: Building Permitting Process Review Capital assets: Construction Project Control Assessment; Work Order Process and Asset Management Compliance: Overtime Review; Power Purchase Agreement Review Operations: Park Operation Review
Finance: Procurement Card Administration Review
IT-related audits: Cybersecurity Assessmen t; Service Provider Contract Management Citywide processes: Succession Planning & Staff Development Review; Record Management and Retention
CAO project: Risk and Control Matrix
The proposed audit plan consists of a variety of projects for a 24-month period to provide flexibility to adjust the timing of audits. It also incorporates time for an ad hoc project to address a request from the City management, if necessary. The audit plan will be updated based on the results of an annual risk assessment. However, amendments to the approved audit plan may be proposed during a year in response to changes in the City’s environment such as organizational structure, operations, risks, systems, and controls.
The preliminary audit objectives are described for each audit listed. These objectives and scope of each audit activity will be further defined based on the result of an audit planning risk assessment process performed at the beginning of each activity.
Also listed in the proposed audit plan are the estimated hours to complete each audit. The budgeted hours should be determined once audit objectives and scope are finalized during the audit planning phase. The current CAO resources are two full-time employees (Internal Audit Manager and a staff member), and their total available hours would be over 3,000 hours per year. However, the CAO’s capacity to execute the audit plan is very limited due to the following reasons:
1. The staff member will not be available to execute the internal audit activities due to the responsibility to “audit and approve all bills, invoices, payrolls, demands or charges against the City government before payment”, which is required by the Santa Clara City Code Sec. 909 City Auditor
4. 2. The approval before payment is a control activity in the operational/transactional process. According to Standard 1130 of the IIA Standards5, it would be an impairment to organizational independence and individual objectivity if the staff member performs an audit of the processes related to her approvals.
3. The Internal Audit Manager who supervises the internal audit staff also performs the same tasks whenever the staff member cannot perform the approval and other related duties.
It is recommended that the City evaluate the current roles and responsibilities of the CAO and take the appropriate action(s) to ensure that the CAO will achieve its mission and help the City improve the effectiveness of risk management, control, and governance processes.
4 The Charter of the City of Santa Clara Article IX Officers and Employees, Sec. 909 City Auditor ( CHARTER OF THE CITY OF SANTA CLARA (codepublishing.com) )
5 Standard 1130.A1 states. “Internal auditors must refrain from assessing specific operations for which they were previously responsible. Objectivity is presumed to be impaired if an internal auditor provides assurance services for an activity for which the internal auditor had responsibility within the previous year.”
(G bakertilly
10 Proposed Audit Plan for 2023 and 2024
Department Project Title Preliminary Audit Objectives Estimated Hours
Electric Utility Department
Information Technology Department
Finance Department Procurement card administration
• Determine whether procurement cards are administered to ensure that only the authorized users can make purchases in accordance with the requirements and guidelines.
• Determine whether internal controls over procurement card transactions are in place and working effectively to prevent and detect errors and irregularities, including duplicate, unauthorized, or improper transactions. 330
Community Development Department Building permitting process Assess the efficiency and effectiveness of the building permitting process 360 Library Department Memorandum of Understanding (MOU) with the Santa Clara Library Foundation & Friends
Determine whether the internal controls to monitor the compliance with the MOU requirements are in place and working effectively 240
Department of Public Works Construction project control assessment Determine whether internal controls over construction projects are adequate and working effectively 300 CAO project / Citywide Risk and control matrix Create a risk and control matrix for each department to be utilizied for future discussion and review of the City's control environment 840
TBD Ad Hoc Requests TBD 200
2,920
Information Technology Department Managed Service Provider (MSP) contract management
Determine whether the City proactively manages its cybersecurity risk and collaborates with its MSP to jointly reduce the risk by defining roles/responsibilities and expectations such as security controls and incident response plans and by monitoring of MSP's access and activities.
400
Police Department
Fire Department
Electric Utility Department Power purchase agreements • Assess the process for evaluating and entering into power purchase agreements. • Assess the effectiveness of the internal controls in overseeing the power purchase agreements 370 Parks & Recreation Department Park operation • Determine whether the internal controls over the maintenance of parks are working effectively. • Determine whether the internal controls over fee collection are working effectively. 380 City Manager's Office Property management Evaluate the efficiency and effectiveness of the City's property management 240 Water and Sewer Utilities Department Work order process and asset management Determine whether the internal controls over the wor k order process are adequate and working effectively. 420 City Clerk's Office Record management and retention program • Determine whether citywide record management and retention policies and procedures are properly established in accordance with laws and regulations
• Determine whether internal controls are working effectively to ensure compliance with the record management and retention policies and procedures
300
Human Resources / Citywide Citywide succession planning and staff development
• Determine whether adequate policies and procedures are in place to development and maintain succession plans to ensure continuity in key positions for all departments
• Determine whether coaching and development programs are in place to ensure that the successors are prepared to assume positions when necessary
300
TBD Ad Hoc Requests TBD 200
2,910
5,830TOTAL - 2023 & 2024
Sub Total - 2023
Sub Total - 2024
Cybersecurity assessment
• Map current state security capabilities to the NIST Cybersecurity Framework and/or other industry specific frameworks and evaluate the maturity of current security processes
• Identify current risks related to weaknesses in the City’s cybersecurity program • Identify target state objectives utilizing the Capability Maturity Model (CMMI) and develop recommendation to meet the ob
jectives
650
Public safety personnel overtime
• Determine whether adequate policies and procedures are in place to ensure the appropriate usage of overtime for the public safety personel.
• Determine whether the overtime practice and reporting comply with the City's policies and procedures. 300
-
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11 Appendix A: Resumes
Appendices
<e bak'.ertilly
12 Appendix A: Risk Factor Definitions
Factor Definition Weight
Magnitude
A measure of materiality based on pervasiveness or volume of dollars or transactions; Scores based on the budgeted expenditure amount
Extreme - 5: $50M or more
Material - 4: $10M or more; Less than $50M
Significant - 3: $3M or more; Less than $10M
Moderate - 2: $1M or more; Less than 3M
Inconsequential - 1: Less than $1M
Added 1 to the magnitude of the Information Technology Department due to the pervasive nature of its work 30%
Customer /
Resident
Experience
Negative experience by customers and residents, such as perceived or actual safety concerns and unsatisfactory services, impacts negatively on the reputation / credibility of the organization Extreme - 5: Direct impact on health and safety
Material - 4: Direct impact on transparency
Significant - 3: Direct impact on customer satisfaction/City's reputation Moderate - 2: Indirect impact on customer satisfaction/City's reputation Inconsequential - 1: Immaterial impact on reputation / credibility 35%
Achievement of
Organizational
Goals
The greater the effect that a department or process has on the organization meeting strategic objectives and goals, the greater the related risks
Extreme - 5: Directly relates to the City Council Priorities Material - 4: Supports the function/process directly related to the City Council Priorities Significant - 3: Has performance/workload measures related to Strategic Pillars Moderate - 2: Somewhat relates to the organizational goals Inconsequential - 1: Does not relate to City's priorities and goals 35%
100%
Complexity
A measure of the difficulty in performing a process or function. As a process or function becomes more complex, the greater the opportunity for errors
5 - Very high complexity
4 - High complexity
3 - Medium complexity
2 - Low complexity
1 - Very low complexity
25%
Policies and
Procedures
Policies and Procedures are a complete set of written instructions that guide personnel in the successful execution of their duties and the duties of the office for which they work. If the policies and procedures are adequate and up-to-date, a risk is lower
5 - No or little written P&P
4 - Some written P&P
3 - Basic P&P requiring improvements
2 - Adequate but outdated P&P
1 - Adequate and up-to-date P&P or Not Applicable
10%
Regulatory
Compliance
Measures the existence of and potential noncompliance with, government regulations and other applicable laws, standards, and policies/procedures
5 - Requirements to meet more than a few laws/regulations and professional standards specific to the division's responsibilities
3 - Requirements to meet one or two laws/regulations and professional standards specific to he division's responsibilities 1 - No requirement to meet any laws/regulations or professional standards specific to he division's responsibilities 25%
Monitoring
Consider the existence of monitoring activities, including the results of last audits by Internal Auditor, External Auditor, Regulators, etc. and other known deficiencies
5 - Overall, there is no mechanism to monitor the status of performance goals/compliance requirements 4 - For only some significant performance goals/compliance requirements, there is an annual or semi-annual reporting, management review process and/or audits by an external party to identify the status of performance goals/compliance requirements
3 -For all significant performance goals/compliance requirements, there is an annual or semi-annual reporting, management review process and/or audits by an external party to identify the status of performance goals/compliance requirements 2 - For only some of significant performance goals/compliance requirements, there is a periodic (weekly/monthly/quarterly) reporting process to ensure performance goals/compliance requirements are met 1 - For all significant performance goals/compliance requirements, there is a periodic (weekly/monthly/quarterly) reporting process to ensure performance goals/compliance requirements are met 10%
Specific Risks
Consider the existence of specific risk events/conditions and their significance 5 - Identified risk event(s)/condition(s) seem to significantly affect the liklihood 3 - Identified risk event(s)/condition(s) seem to have some impact on the liklihood 1 - No or very minor risk event(s)/condition(s) have been identified 30%
100%
Fraud Schemes
Consider tthe susceptibility to fraud, which is the opportunity for employees/vendors/customers/fraudsters to misappropriate resources or defraud the organization*
5 - High Risk
3 - Moderate Risk
1 - Low Risk
40%
40%
Impact Factors (the effect on the organization)
Likelihood Factors (the probability of the risk occurring) Other Risk Factor
* Considered fraud schemes listed in the Fraud Tree provided in the “Occupational Fraud 2022: A report to the Nations” by Association of Certified Fraud Examiners. Also considered are cyber fraud schemes.
HIGHEST TOTAL SCORE FOR IMPACT: 5
HIGHEST TOTAL SCORE FOR LIKELIHOOD: 5
HIGHEST TOTAL SCORE FOR OTHER: 2
HIGHEST TOTAL SCORE 12
13 Appendix B: Audit Universe
City Attorney’s Office
Administration
Litigation
City Clerk’s Office
Assistant City Clerk - Council/Administration Support
Assistant City Clerk - Public Information/Legislation Records Management Assistant City Clerk - Political Reform Act
Elected City Clerk - Election
City Manager’s Office
City Council Support - Policy Support for Decision Making City Council Support - Intergovernmental Relations & Advocacy Leadership and Management Services - Day to Day Operations Leadership and Management Services - Strategic Planning Leadership and Management Services - Community Outreach & Engagement Citywide Programs
Stadium Operations
Citywide Strategic Programs & Initiative
Convention Center
Community Development Department
Planning- Development Review
Planning- Advanced Planning
Planning- Historical Preservation
Planning- Code Enforcement
Building - Plan Review
Building - Permit Services
Building - Field Inspection
Building - Code Enforcement
Housing Inspection
Housing and Community Services - Federal State Grant
Housing and Community Services - Neighborhood Conservation and Improvement Program Housing and Community Services - Tenant Based Rental Assistance Program (Funded by HUD HOME) Housing and Community Services - Below Market Rate Rental Program (BMR) Housing and Community Services - Below Market Rate Purchase Program (BMP) Housing and Community Services - Community Development Housing Successor Fund Housing and Community Services - Housing Development Lending (Various Funds) Electronic Utility Department
Business Services - Rates and Budget
Business Services - Electric Compliance
Business Services - Risk Management
Customer Develop. & Project Man. - Key Accounts
Customer Develop. & Project Man. - Fiber Program
Customer Develop. & Project Man. - SVP Engineering
Resource Planning & Engagement - Public Benefits
Resource Planning & Engagement - SVP Electric Vehicle Program Resource Planning & Engagement - Greenhouse Gas Program Resource Planning & Engagement - Resource Management
Utility Operations - SVP Systems Support
Utility Operations - Power System Controls
Utility Operations - Communications & Meter Technical Support Utility Operations - Substation Maintenance
Utility Operations - Transmission & Distribution
Utility Operations - Generation
Finance Department
General Accounting
Citywide Fiscal Planning & Administration
Budget & Financial Analysis
Municipal Services - Utility Billing Services
Municipal Services - Revenue Receipt-Cashiering
Municipal Services - Business Certificate
Municipal Services - Field Service
14 Municipal Services – Administration
Municipal Services - Contact Center/Communication
Purchasing
Purchasing - Warehouse
Fire Department
Administration
Community Risk Reduction - Prevention and Hazardous Materials Community Risk Reduction - Certified United Program Agency (CUPA) Emergency Medical Services
Field Operations
Office of Emergency Services
Training
Human Resources Department
Employee Benefits and Records – Compensation
Employee Benefits and Records - Workers' Compensation & Safety Recruitment, Classification and Staff Development - Selection and Classification Recruitment, Classification and Staff Development - Labor Relations Information Technology Department
Enterprise Services - Application Services
Enterprise Services - IT Web Services
Enterprise Services - GIS Services
Infrastructure and Support
Contract Services
Telecommunication Services
Library Department
Administration
Adult Services
Branch Services - Mission Library
Branch Services - Northside Branch
Branch Services - Bookmobile & Mobile Library Services
Customer Services
Technical and Technology Services
Youth Services
Parks and Recreation Department
Administration
Parks
Recreation
Cemetery
Police Department
Administrative Services - Administration
Administrative Services - Professional Standards
Administrative Services - Departmental Support
Administrative Services - Community Services
Administrative Services - 911 Dispatch/Communications
Field Operations - General Patrol
Field Operations – Traffic
Field Operations - Emergency Response/Temporary Holding Facility Investigations - General Investigation
Investigations - Special Enforcement Team
Investigations – Records
Special Operations – General
Special Operations - Specialized Teams
Special Operations - Reserves
Department of Public Works
Engineering – Traffic
Engineering – Design
Engineering - Land and Property Development
Engineering - Field Services
Facility Services
Fleet Management
Streets
15 Water and Sewer Utilities Department
Recycled Water Program - System Maintenance
Recycled Water Program - Storm Pump Maintenance
Sewer - System Administration
Sewer - System Maintenance
Sewer – Operations
Sewer - San Jose-Santa Clara Water Pollution Control Plant Sewer - Storm Pump Maintenance
Solar Utility - System Maintenance
Water Engineering - Admin Design
Water Engineering - Water Quality
Water Engineering - Water Resources
Water Construction, Maintenance, Operations - Water System Maintenance Water Construction, Maintenance, Operations - Water Construction Water Construction, Maintenance, Operations - Water System Operations City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-815 Agenda Date: 6/27/2023
REPORT TO COUNCIL AND STADIUM AUTHORITY BOARD
SUBJECT
Action to Authorize the City Manager to Negotiate and Execute a One-Year Municipal Law Enforcement Services Agreement Between the City of Santa Clara and the City of Milpitas for Supplemental Law Enforcement Services at Levi’s Stadium Events; Action on a Resolution Delegating Authority to the City Manager to Negotiate and Execute Future Indemnity Agreements and Municipal Law Enforcement Services Agreements Between the City of Santa Clara and Other Public Safety Agencies for “Double-Badgers” or Supplemental Law Enforcement Services
COUNCIL PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
Prior to the opening of Levi’s Stadium in 2014, the Santa Clara Police Department (SCPD) worked with the National Center for Spectator Sports Safety and Security and the Department of Homeland Security to develop comprehensive safety and traffic management plans for the venue and surrounding area. It is the City of Santa Clara’s obligation to provide public safety services within its jurisdictional boundaries, including at Levi’s Stadium.
Through the planning process, the Police Department acknowledged the City’s organization did not have the specialized expertise (e.g., ability to close highway off-ramps and corresponding traffic management skills), resources (e.g., air operations, crowd control, SWAT, etc.), and volume of sworn and civilian personnel necessary to implement these plans. As a result, agreements were formed with local, State and federal law enforcement partners to provide these additional services.
The Police Department relies heavily on sworn and civilian professionals to provide a safe and enjoyable experience for stadium personnel, athletes/entertainers, event attendees, surrounding businesses, and nearby residents. The staffing needs vary from event to event based on event type, day of the week, time of the day, anticipated attendance, dignitaries present, intelligence gathered from similar events, etc.
DISCUSSION
Law Enforcement Services Agreements
As the lead law enforcement agency, the Police Department secures local, State and federal resources, as necessary, to mitigate traffic congestion for event patrons and local traffic, provide a safe venue for attendees, performers and stadium personnel as well as to deter intrusion into neighborhoods while maintaining access to adjacent business properties.
Currently, the Police Department has various Indemnity Agreements with multiple agencies City of Santa Clara Printed on 6/22/2023Page 1 of 4
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23-815 Agenda Date: 6/27/2023
throughout California to provide Per Diem Special Event Police Officers (e.g., Campbell, Gilroy, Los Altos, Los Gatos, Milpitas, Morgan Hill, Palo Alto, Santa Cruz, etc.) to augment the staffing for events at Levi’s Stadium. These Per Diem employees proceed through a complete application, interview, background and training process as well as purchase the City’s uniform to be hired by the City of Santa Clara to work special events as a peace officer at a flat rate of $75 per hour. Commonly referred to as “double badgers,” the Police Department currently has approximately 154 employees in this classification. While this is a significant number, the demands within each employees’ home agency take precedence over working for the City’s Police Department. Certain times of year (e.g., summer) and special occasions (e.g., New Year’s Eve, Super Bowl Sunday, Fourth of July, Christmas, etc.) are also inherently challenging to staff in law enforcement and tend to be busiest with calls for service. Under the Indemnity Agreements, Santa Clara takes on the financial responsibility associated with any third-party claims arising from the double-badger’s actions while working at the stadium including defense and indemnity of the double-badger’s home agency if that agency is also named in the claim.
In addition to hiring Per Diem Special Event Officers through the process described above, the City also obtains personnel from surrounding jurisdictions by entering into Municipal Law Enforcement Services Agreements with local agencies for specified services (e.g., personnel, helicopter, mounted unit, K-9 team, tactical vehicles, equipment, etc.) associated with special events at Levi’s Stadium. At present, the following Municipal Law Enforcement Service Agreements are in place:
• California Highway Patrol
• Monterey County Sheriff’s Office
• San Francisco County Sheriff’s Office
• Santa Clara County Sheriff’s Office
• Sunnyvale Department of Public Safety
Proposed Municipal Law Enforcement Services Agreement with Milpitas Staff proposes to enter into a Municipal Law Enforcement Services Agreement with Milpitas to allow personnel in various classifications, as called upon and available, to provide supplemental special detail law enforcement services for events taking place at the stadium and surrounding areas. The agreement also allows for the Milpitas Police Department personnel responding to requests for services to transmit and broadcast communications on the Santa Clara Police Department’s dispatch frequency, licensed by the Federal Communications Commission. Staff aims to have this Agreement in place for the July 2nd events. Due to the timing constraints, the parties have not been able to finalize the Agreement in advance of agenda publication, hence the request for authority to negotiate and execute the agreement. A draft version of the standard agreement is attached and contains highlighted portions currently under negotiation, including:
· Milpitas has requested that Santa Clara take on the financial responsibility for any and all workers compensation related expenses that arise from one of their officers being injured while performing services under the Agreement
· Milpitas has requested that Santa Clara take on the financial responsibility for defense and indemnity of Milpitas and their employee officers in the event a third party claim arises from a Milpitas officer’s actions while performing services under the Agreement · The rates Milpitas proposes for their various personnel City of Santa Clara Printed on 6/22/2023Page 2 of 4
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23-815 Agenda Date: 6/27/2023
In prior similar agreements with other agencies, Santa Clara has not agreed to accept labiality for either workers compensation claims or third-party claims, as is reflected in the standard contract language; we cannot quantify what the measure of that liability is at this time, but theoretically it could be significant, and would be more significant in the future if other agencies seek similar clauses. The City Manager’s Office will take such considerations into account and proceed accordingly.
Delegation of Authority for Future Agreements
Staff anticipates that the need for execution of both Indemnity Agreements and Municipal Law Enforcement Services Agreements in an expeditious fashion will continue. There are times in which a neighboring agency informs SCPD of their willingness to provide personnel for an event just a couple of few weeks in advance of the event date. To avoid a scenario in which Stadium event staffing is negatively impacted as a result of the timing of this notice and council meeting schedules, staff recommends the Council delegate authority to the City Manager by resolution to negotiate and execute such agreements in the future.
The authority of the City Council to contract with neighboring cities for the provision of supplemental police services derives from the City Charter as well as state law, as follows:
City Charter Sec. 1108 Contract for administrative services.
The City Council, upon recommendation of the City Manager, may contract with the governing body of any other city, or county within this state, or with any state department, or with any private or governmental agency for the furnishing of administrative, fiscal, or personnel services.
Government Code Sec. 55632
The legislative body of any local agency may contract with any other local agency for the furnishing of fire or police protection to such other local agency.
Government Code Sec. 54981
The legislative body of any local agency may contract with any other local agency for the performance by the latter of municipal services or functions within the territory of the former.
The Council may delegate to or require the City Manager to perform this contract approval function (City Charter Sec. 802(h)).
The Santa Clara Stadium Taxpayer Protection and Economic Progress Act, commonly referred to as Measure J, requires all public safety costs related to stadium operations to be reimbursed to the City.
In addition, in accordance with the contractual arrangements between the City, Stadium Authority and the team, the team reimburses the City for public safety related expenses incurred for NFL events.
For non-NFL Events, the cost of public safety (including the costs charged by our public safety partners such as Milpitas Police Department) are charged against the net non-NFL revenues of the Stadium Authority.
ENVIRONMENTAL REVIEW
City of Santa Clara Printed on 6/22/2023Page 3 of 4
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23-815 Agenda Date: 6/27/2023
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
This agreement allows the Milpitas Police Department to provide support services for Levi’s Stadium, as requested and available.
Any expenses incurred by the City for the use of the Milpitas Police Department personnel at NFL events would be billed by the City to the Forty Niners, in accordance with the applicable contracts and with Measure J. For non-NFL events, the expenses are deducted from the Stadium Authority’s net non-NFL revenues.
COORDINATION
This report was coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
1. Authorize the City Manager to Negotiate and Execute a One-Year Municipal Law Enforcement Services Agreement Between Santa Clara and the City of Milpitas Police Department for Supplemental Law Enforcement Services at Levi’s Stadium Events in a form approved by the City Attorney
2. Adopt a Resolution Delegating Authority to the City Manager to Negotiate and Execute Future Indemnity Agreements and Municipal Law Enforcement Services Agreements, in a form approved by the City Attorney, Between the City and other Public Safety Agencies for “Double- Badgers” or Supplemental Law Enforcement Services
Reviewed by: Pat Nikolai, Chief of Police
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Draft Standard Municipal Law Enforcement Services Agreement (highlighted terms currently under negotiation)
2. Resolution
City of Santa Clara Printed on 6/22/2023Page 4 of 4
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DocuSign Envelope ID: 4D3069EE-306F-4D84-8869-056F4D6084D0 Municipal Law Enforcement Services Agreement/CITY OF MILPITAS Page 1 of 9
MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT
by and between the
THE CITY OF SANTA CLARA,
and
THE CITY OF MILPITAS
PREAMBLE
This agreement for the performance of municipal law enforcement services (“Agreement”) is made and entered into on this day of June, 2023, (“Effective Date”) by and between the City of Milpitas, 455 E. Calaveras Blvd., Milpitas, CA 95035 (“Agency”) and the City of Santa Clara, a chartered municipal corporation, located at 1500 Warburton Avenue, Santa Clara, California 95050 (“City”). City and Agency may be referred to individually as a “Party” or collectively as the “Parties” to this Agreement.”
RECITALS
A. City is desirous of contracting with Agency for the performance of the law enforcement functions described herein.
B. Agency is agreeable to rendering such law enforcement services pursuant to the terms and conditions set forth in this Agreement.
C. Pursuant to the authority set forth in Government Code sections 54981 and 55632, and City Charter Section 1108, City seeks additional law enforcement services, and Agency agrees to provide additional law enforcement services on a periodic basis.
The Parties agree as follows:
AGREEMENT PROVISIONS
1. SERVICES TO BE PROVIDED.
A. Agency agrees, as available, to provide supplemental special detail law enforcement services for events taking place at the Stadium site and surrounding areas within City’s jurisdictional boundaries during the term of this Agreement.
The classification and approximate numbers of personnel provided by Agency will be determined and mutually agreed upon, in writing, between Agency and the Santa Clara Chief of Police prior to each event. The Parties shall establish and agree to the number of hours necessary for the Agency employees to perform the requested services. City herein provides consent, pursuant to Penal Code section 830.1(a)(2), for any Agency peace officer providing services hereunder to exercise full peace officer authority within the City’s jurisdiction.
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B. Except as otherwise specifically set forth, such services shall only encompass duties and functions of the type coming within the jurisdiction of, and customarily rendered by, Agency under its Charter and/or municipal codes, and the statutes of the State of California, and under the Charter and municipal codes of the City of Santa Clara.
C. For special detail officers, the request for services shall be a written request from the Santa Clara Police Chief or his/her designee. The request shall contain specific dates of service, hours of operation, number of personnel requested, and classification of personnel requested. For the purpose of performing said services, Agency shall furnish and supply, as available, all necessary labor, supervision, personnel, helicopters, tactical vehicles, equipment, fuel, and supplies necessary to provide the services to be rendered hereunder. The City acknowledges that additional equipment charges for special equipment such as helicopters, tactical vehicles, equipment, fuel, and supplies may be appropriate depending upon the services requested and may be charged by Agency as above and beyond the authorized pay rate for personnel. The request shall be signed by a representative of the City who is duly authorized to enter into such agreements for supplemental law enforcement services. The request shall be submitted via email to Agency specified contact.
D. The City hereby grants to Agency and its personnel responding to requests for services herein the right to transmit and broadcast communications to the Santa Clara Police Department's units via the Santa Clara Police Department’s designated dispatch frequency and/or any other law enforcement frequency for which the City of Santa Clara is licensed by the FCC.
E. Mutual aid agreements pursuant to the California Emergency Plan (Government Code §§ 8550 et seq.) and the Master Mutual Aid Agreement: If any mutual aid agreement(s) currently in place are triggered during any performance of services under this Agreement, the mutual aid agreement(s) shall govern all necessary personnel and/or tactics.
2. ADMINISTRATION OF PERSONNEL.
A. In the event of a dispute between the Parties to this Agreement as to the extent of the duties and functions to be rendered hereunder, or the minimum level or manner of performance of such service, the City shall be consulted and a mutual determination thereof shall be made by both Agency and the City in consultation with the City of Santa Clara’s Chief of Police.
B. The rendition of the services performed by Agency, the discipline of its officers, and other matters incident to the performance of such services and the control of personnel so employed shall remain with Agency.
C. With regard to sections A. and B., if there remains a disagreement as to the minimum level of services for a particular event, the Parties agree that the Santa DocuSign Envelope ID: 4D3069EE-306F-4D84-8869-056F4D6084D0 Municipal Law Enforcement Services Agreement/CITY OF MILPITAS Page 3 of 9
Clara Chief of Police shall have final and conclusive determination of levels of service provided by Agency’s officers.
D. All City employees who work in conjunction with Agency pursuant to this Agreement shall remain City employees, are not Agency employees, and have no claim or right to any Agency employment benefits or policies. Similarly, all Agency employees who work in conjunction with City pursuant to this Agreement shall remain Agency employees, are not Santa Clara Stadium Authority (“Authority”) and/or City employees, and have no claim or right to any such employment benefits or policies.
E. Neither Authority nor City shall be called upon to assume any liability for the direct payment of any Agency salaries, wages, or other compensation to any Agency personnel performing services hereunder. Except as herein otherwise specified, neither Authority nor City shall be liable for compensation or indemnity to any Agency employee or agent for injury or sickness arising out of his/her status as a contract agent of the Authority and/or City.
3. COMPENSATION AND PAYMENT.
A. The City, shall pay Agency for the services it provides under the terms of this Agreement at the rates established hereunder, as they may be amended from time to time. The rates listed below may be periodically adjusted effective July 1 of each year to a mutually agreed upon rate. In such case, the annual rate adjustment shall be attached to this Agreement as Exhibit A to reflect the change in rates each fiscal year. The Parties specifically agree that such adjustment and change in Exhibit A each year is a valid amendment to this Agreement, and that no formal Amendment form need be used for such annual rate adjustment. The Parties will separately execute Exhibit A each year, or whenever there is a change in Exhibit A rates.
B. For and in consideration of Agency providing supplementary law enforcement services for the Authority and/or City under this Agreement, the City agrees to pay Agency for said services at the hourly rates as indicated in Exhibit A.
The rates in Exhibit A are developed by the Agency. These rates are designed to reimburse Agency’s costs in the compensation of employees, the administration of workers’ compensation benefits, and the Agency’s overhead attributable to providing the services identified in this Agreement, and as they may be amended from time to time.
4. PAYMENT PROCEDURES.
A. On a monthly basis, Agency shall submit a summarized invoice which covers all services performed during said month, to the City, and the City shall pay Agency for all undisputed amounts within thirty (30) days after date of said invoice.
-
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B. If such payment is not delivered to Agency within thirty (30) days after the date of the invoice, Agency is entitled to recover interest thereon. Said interest shall be at a rate of five percent (5%) per annum or any portion thereof, calculated from the date payment was due.
C. For all disputed amounts, City shall provide Agency with written notice of the dispute including the invoice date, amount, and reasons for dispute within ten (10) days after receipt of the invoice. The Parties shall memorialize the resolution of the dispute in writing. For any disputed amounts, interest shall accrue at the rate stated in subsection B, above, if payment is not received within thirty (30) days after the dispute resolution is memorialized.
5. CANCELLATION OF PERSONNEL.
A. Neither the City nor the Authority shall be charged for cancellations made more than 24 hours prior to the scheduled event/assignment.
B. The City agrees that if cancellation is made within 24 hours prior to the scheduled event/assignment and the assigned Agency officer cannot be notified of such cancellation, City shall reimburse Agency a minimum of four (4) hours of compensation for each assigned officer pursuant to the rates identified herein.
C. Agency agrees to make all reasonable efforts to notify its assigned officer(s) of the cancellation.
6. TERM OF AGREEMENT.
A. The term of this Agreement shall commence upon execution by the Parties and shall continue for a period of one (1) year, unless terminated sooner or extended in whole or in part as provided for herein.
7. TERMINATION.
A. Either Party may terminate this Agreement with or without cause by giving not less than sixty (60) days advance written notice to the other Party.
B. Notwithstanding the foregoing, Agency may terminate the Agreement on only twenty (20) days advance notice, or less in the event of exigent circumstances, if Agency concludes that there are insufficient personnel to provide the agreed upon services and still perform other Agency duties as required by law.
C. In the event of a termination, each Party shall fully discharge all obligations owed to the other Party accruing prior to the date of such termination, and, except as otherwise provided herein, each Party shall be released from all obligations, which would otherwise accrue subsequent to the date of termination.
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8. FAIR EMPLOYMENT.
While in the performance of services under this Agreement, Agency and its employees and agents shall not discriminate against any other employee or agent because of race, color, creed, national origin, gender, sexual orientation, age, disability, religion, ethnic background, or marital status, in violation of state or federal law.
9. HOLD HARMLESS/INDEMNIFICATION.
A. For purposes of indemnification, each Party shall be responsible for the acts of its participating employee(s) and shall incur any liabilities arising out of the service and activities of those employees.
B. Any Agency employee who performs duties under this Agreement shall be deemed to be continuing under the general employment of his or her respective jurisdiction and shall have the same powers, duties, privileges, responsibilities, and immunities as are conferred upon such employee by law in his or her own jurisdiction. Pursuant to Insurance Code Section 11663, the general employer shall be responsible for the entire cost of any worker’s compensation payable on account of injury occurring in the course of and arising out of general and special employments.
C. Pursuant to Government Code Section 895.4, each of the parties hereto shall fully indemnify and hold each of the other parties, their officers, employees, and agents, harmless from any damage or liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of negligent acts or omissions or willful misconduct of the indemnifying party, its officers, employees or agents, under or in connection with any work performed or authority delegated to such party under this Agreement. No party, nor any officer, employee or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of the other parties hereto, their officers, employees or agents, under or in connection with any work performed or authority delegated to such other parties under this Agreement.
10. ASSIGNMENT, DELEGATION, AND SUBCONTRACTING.
A Party shall not assign its rights and/or subcontract, or otherwise delegate, its duties under this Agreement, either in whole or in part, without the prior written consent of the other Party, and any attempted assignment or delegation without such consent shall be null and void.
11. INTEGRATED DOCUMENT.
This Agreement represents the entire agreement between City and Agency. No other understanding, agreements, or conversations with any representative of either Party prior to execution of this Agreement shall affect or modify any of the terms or obligations of this Agreement. Any verbal agreement shall be considered unofficial information and is not binding upon either Party.
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12. SEVERABILITY AND WAIVER.
In case any one or more of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, it shall not affect the validity of the other provisions, which shall remain in full force and effect. Agency agrees that waiver by City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.
13. NOTICES.
All notices to the Parties shall, unless otherwise requested in writing, be sent to City as follows:
City of Santa Clara
Attn: Chief of Police
601 El Camino Real
Santa Clara, CA 95050
or by email at [email protected]
And to Agency addressed as follows:
City of Milpitas
Attn:
If notice is sent via email, a signed, hard copy of the material shall also be mailed. The workday the email was sent shall control the date notice was deemed given. An email transmitted after 1:00 p.m. on a Friday shall be deemed to have been transmitted on the following Monday.
14. LAW GOVERNING CONTRACT AND VENUE.
This Agreement shall be governed and construed in accordance with the statutes and laws of the State of California. The venue of any suit filed by either Party shall be vested in the state courts of the County of Santa Clara.
[Signatures on next page.]
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The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives. It is the intent of the Parties that this Agreement shall become operative on the Effective Date.
CITY OF SANTA CLARA, CALIFORNIA,
a chartered California municipal corporation
APPROVED AS TO FORM:
GLEN R. GOOGINS
City Attorney
JŌVAN D. GROGAN
City Manager
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771
“CITY”
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CITY OF MILPITAS
APPROVED AS TO FORM:
MICHAEL MUTALIPASSI
City Attorney
City Manager
“AGENCY”
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MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT
by and between the
THE CITY OF SANTA CLARA,
and
CITY OF MILPITAS
EXHIBIT A
[Insert Rates]
Resolution/Law Enforcement Services Agreements Page 1 of 2 Rev: 11/22/17
RESOLUTION NO. _____
A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA
DELEGATING AUTHOR ITY TO THE CITY MANAGER T O
NEGOTIATE AND EXECUTE INDEMNITY AGREEMENTS AND
MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENTS
BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
WHEREAS, it is the City of Santa Clara’s obligation to provide public safety services within its jurisdictional boundaries, including at Levi’s Stadium; WHEREAS, in order to provide the sufficient number of sworn and non-sworn personnel, the City contracts with neighboring agencies to provide same (pursuant to Government Code Sections 55632, 54981, and City Charter Section 1108) to work at the Stadium and in surrounding areas on event days;
WHEREAS, generally the form of the agreement with the neighboring agency will be either an Indemnity Agreement when the agency is permitting their staff to act in a “double-badge” capacity for the City, or a Municipal Law Enforcement Services Agreement when the agency is providing staff who will be performing services under the umbrella of their home agency; WHEREAS, currently if the neighboring agency agrees to provide personnel at a time when Council is not in session, or the contract cannot be brought to Council for approval prior to the event day for some other reason, the City risks having insufficient public safety staffing for the event; and
WHEREAS, in order to ensure that such timing considerations do not negatively impact the City’s ability to contract for the necessary public safety staffing, the City Council wishes to delegate authority to the City Manager to negotiate and execute Indemnity Agreements and Municipal Law Enforcement Services Agreements for public safety services on behalf of the City.
NOW THEREFORE, BE IT FURTHER RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
1. That the City Manager is hereby authorized to negotiate and execute Indemnity Resolution/Law Enforcement Services Agreements Page 2 of 2 Rev: 11/22/17
Agreements and Municipal Law Enforcement Services Agreements on behalf of the City of Santa Clara, in a form approved by the City Attorney’s Office, for public safety services performed at or around Levi’s Stadium on event days.
2. Effective date. This resolution shall become effective immediately.
I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED
AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A REGULAR MEETING THEREOF HELD ON THE ___ DAY OF _________, 2023, BY THE FOLLOWING VOTE:
AYES: COUNCILORS:
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
ATTEST: ______________________________
NORA PIMENTEL, MMC
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
Attachments incorporated by reference: None
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-144 Agenda Date: 6/27/2023
REPORT TO COUNCIL
SUBJECT
Public Hearing: Action on the Adoption of the Proposed FY 2023/24 & FY 2024/25 Biennial Operating Budget and FY 2023/24 Capital Improvement Program Changes
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
City Charter Section 1302 (Budget - Submission to City Council) requires that at least 35 days prior to the beginning of each fiscal year, or at such prior date thereto determined by the City Council, the City Manager shall submit to the City Council the proposed budget. The Proposed Budget is attached to this Report to Council and can be found online at:
<https://www.santaclaraca.gov/home/showpublisheddocument/80482/638182746058823294>.
Study sessions were held on May 9, 2023 and June 6, 2023 to allow the City Council and public to review and provide input on the budget amendment to the Proposed FY 2023/24 and FY 2024/25 Biennial Operating Budget, and Proposed FY 2023/24 Capital Improvement Program budget changes. The June 6, 2023 study session also included follow-up from the May 9, 2023 study session.
The City Council has adopted the following Council Strategic Pillars:
1. Promote and Enhance Economic, Housing and Transportation Development
2. Deliver and Enhance High Quality Efficient Services and Infrastructure
3. Enhance Community Sports and Recreational and Arts Assets
4. Enhance Community Engagement and Transparency
5. Ensure Compliance with Measure J and Manage Levi’s Stadium
6. Manage Strategically Our Workforce Capacity and Resources
7. Promote Sustainability and Environmental Protection
The City Council adopts a set of Budget Principles each year. These Budget Principles provide a general framework and approach for developing the City’s budget, ensuring fiscal stability by considering both the short and long-term impacts of any funding decisions. These principles are generally consistent with those approved last year with the Budget Stabilization Reserve (BSR) continuing to be set at a minimum of 15% of expenditures; this is an exception to the Budget and Fiscal Policies that set the BSR target at 25% of expenditures. These principles are incorporated as part of the actions considered in this Proposed Budget. The FY 2023/24 Budget Principles can be found in the Budget and Fiscal Policies section of the Proposed Budget.
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DISCUSSION
City Charter Section 1303 (Budget - Public Hearing) requires that the City Council hold a public hearing on the proposed budget, at which interested parties are given an opportunity to be heard. A public hearing is scheduled for the purpose of taking public input on the City Council adoption of the Proposed FY 2023/24 & FY 2024/25 Biennial Operating Budget and FY 2023/24 Capital Program Budget Changes, including the Housing Authority and Sports and Open Space Authority budgets.
In addition, the City is required to calculate the expenditure appropriation limit from tax proceeds to determine compliance with Proposition 4 (Gann Initiative) and Proposition 111 (Spending Limitation Act of 1990). The City’s Gann Appropriations limit is included as a separate report for City Council action. As stated in this companion report, the City’s Proposed Budget is in compliance with the Gann Appropriations limit.
Budget Overview
The annual budget serves as a financial plan and operational guide that reflects the policies, goals, and priorities of the City Council and community while also maintaining fiscal stability.
The City’ s financial position has significantly improved since the adoption of the FY 2022/23 budget.
The latest Ten-Year General Fund Forecast shows smaller deficits of $8.0 million - $8.9 million in FY 2023/24 and FY 2024/25. This is well below the $27 million deficit projected in June 2022 and reflects stronger revenue growth in several areas as described in further detail in the Ten-Year Financial Forecast section of the Proposed Budget document. While the financial picture is much better, it is important to note that significant economic uncertainty and the risk of a recession persists.
The Proposed Budget continues the multi-pronged approach to solve the General Fund deficit with new revenues, one-time and ongoing expenditure savings, and use of reserves. Based on the improved financial position, this budget preserves services with fewer reductions necessary. The expenditure reductions limit direct service impacts, with the goal of stabilizing the services residents access on a regular basis as the organization continues to recover from the COVID-19 service disruptions. As part of this recovery, the City continues to fill vacant positions, which will result in an overall improvement to the services the City provides with the funding included in this budget.
With the recommended amendments to the Proposed Budget, the expenditure budget totals $1.8 billion in FY 2023/24 and $1.2 billion in FY 2024/25, as shown in Attachment 7 (Table 1). The budget includes adjustments for transfers, contributions and reserves to avoid double counting of the same funds (e.g. internal service funds are excluded).
The FY 2023/24 and FY 2024/25 Proposed Budget incorporates actions to bring the budget into balance, particularly in the General Fund that represents approximately one-fifth of the total budget.
Staff has carefully analyzed all department budget proposals, considering the fiscal year projected resources, anticipated service impacts to Santa Clara residents and businesses, and City Council goals, principles and priorities. The Proposed Budget also factors in recommended changes to FY 2023/24 capital projects as well as recommended capital budget carryovers from FY 2022/23.
With the projected General Fund shortfall of $8.0 million in FY 2023/24, the budget balancing strategy for the FY 2023/24 and FY 2024/25 Biennial Operating Budget incorporates a combination of increased revenues, one-time and ongoing expenditure reductions, and use of reserves as shown in City of Santa Clara Printed on 6/22/2023Page 2 of 6
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Attachment 7 (Table 2). This strategy is intended to preserve services while also maintaining the City’s fiscal stability.
Following is a summary of the budget balancing components that are also discussed in more detail in the individual department sections of the budget document:
· Revenue Solutions: Part of the balancing strategy is to factor in increases to specific revenue sources. In November 2020, Santa Clara voters approved to increase the Transient Occupancy Tax rate by up to 4%, and the first two percentage point increase went into effect on January 1, 2022. The Proposed Budget assumes that the City Council will phase in the remaining increase in FY 2023/24 (1 percent in January 2024) and in FY 2024/25 (1 percent in January 2025), which would increase the rate from 11.5% to 13.5%. The rate increases would generate additional revenue of approximately $0.9 million in FY 2023/24 and increasing to $3.4 million ongoing. Fee adjustments have also been factored into this proposed budget. The fee increases incorporated into the FY 2023/24 were brought forward and approved by the City Council on April 18, 2023. This includes additional revenue assumed for the Parks & Recreation Sports Field Reservations Program, Public Works engineering fees, and Community Development fees. The anticipated increase to the Storm Drain Environmental Compliance fee is also reflected in the FY 2024/25 fee adjustments above. The funding sources also include a one-time transfer of $149,000 from the Vehicle Replacement Fund for the sale of vehicles that will be retired as a budget proposal. · Expenditure Reductions: one-time expenditure savings in both the Fire and Police Departments are expected to be realized in this biennial budget with no service delivery impacts. In FY 2022/23, the Fire Department was awarded a three-year SAFER grant, which will generate annual net overtime savings ($1.0 million to $3.1 million) during the grant period.
In the Police Department, an increase to the Police Department’s vacancy factor is recommended to align with historical performance. This results in no position reduction and provides the General Fund with approximately $1.6 million and $1.7 million in savings in FY 2023/24 and FY 2024/25, respectively. The vacancy factor adjustment has no impact in terms of recruitment or hiring efforts on the Police Department’s side. Other departmental reductions limit direct service impacts, and the 4.0 position reductions are in strategic supports areas (City Attorney’s Office, City Manager’s Office, City Auditor’s Office, Human Resources Department).
· Use of Reserves/Future Unidentified Solutions: In FY 2022/23, the City Council approved the establishment of a Budget Balancing Reserve as part of the FY 2021/22 Budgetary Year- End Close process. This Proposed Budget uses $1.1 million of this reserve in FY 2023/24 and replenishes the amount in FY 2024/25. After the biennial budget period, additional balancing solutions are expected to be necessary and a revised forecast will inform the needed actions at that time.
The proposed budget balancing strategy addresses approximately half of the budget deficit with ongoing solutions. This continues the use of one-time and ongoing actions to bring the budget into balance, allowing time for the City’s finances to recover. This strategy, however, does not provide capacity to restore services or to address the significant backlog of unmet and deferred capital needs.
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Future Revenue Opportunities
While not incorporated into the budget figures presented in the Proposed Budget, the Administration will continue to evaluate future revenue opportunities that can help address a portion of the remaining ongoing General Fund shortfall, better position the City moving forward, address capital infrastructure needs, and align the City’s revenues with other jurisdictions.
Other potential measures include, but are not limited to: 1) implement a General Obligation Bond to fund capital infrastructure needs; 2) establish a library or community services Parcel Tax; 3) increase the Property Documentary Transfer Tax; 4) establish a district sales tax; and 5) establish a utility users tax. These measures would require voter approval. Staff will seek direction from the City Council on those measures to potentially pursue during FY 2023/24.
Proposed FY 2023/24 Capital Improvement Program Amendments The City Council approved the FY 2022/23 and 2023/24 Biennial Capital Budget and five-year capital improvement plan in June 2022. While the focus of this year’s budget is operations, several budget amendments to the FY 2023/24 Adopted Capital Budget are also recommended, including a street trees replacement project funded by the General Fund Capital Projects Reserve as well as those funded by other funds. Further detail can be found in the Appendices section of the Proposed
Budget.
Transient Occupancy Tax Direction
As discussed above, in November 2020, Santa Clara voters approved to increase the Transient Occupancy Tax rate by up to four percentage points from the rate of 9.5%; the first two percentage point increase went into effect on January 1, 2022. The Proposed Budget assumes that the City Council will phase in the remaining increase in FY 2023/24 (1 percent in January 2024) and in FY 2024/25 (1 percent in January 2025), which would increase the rate from 11.5% to 13.5%. A recommendation is included in this report to direct staff to bring forward a separate resolution to increase the Transient Occupancy Tax rate by one percentage point effective January 1, 2024. This resolution is expected to be brought forward to the City Council later this calendar year.
May 9th and June 6th Budget Study Sessions
The City Council and public provided feedback and had questions regarding the Proposed Operating Budget. This included discussion about elements of the General Fund Forecast, budget mechanics, and the budget balancing strategy. There were also questions regarding various revenues and expenditures (e.g., sales tax, transient occupancy tax, cannabis, CalPERS, use of one-time funds/reserves, budgeting for vacancies, available capital funding).
Concerns around staffing and recruitment were discussed. There was an interest in increasing library and Senior Center hours by filling vacancies, and the Council inquired about the timeline for these improvements. There was also discussion around public safety and the need to continue funding both the Fire and Police Departments, along with the programs and services they offer. The Council expressed interest in exploring new sources of revenue for the City to address the significant unmet City of Santa Clara Printed on 6/22/2023Page 4 of 6
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infrastructure needs. In addition, the Council was concerned about the fees for public facility rentals, and this item will be brought forward separately during FY 2023/24.
Responses to questions from the study sessions are included in Attachment 4 and Attachment 5 of this Report to Council. This report also includes a Budget-in-Brief as Attachment 6, a concise summary of the FY 2023/24 and FY 2024/25 proposed budget document.
Changes to the Proposed Budget
Recommended revisions to the Proposed Budget, including the carryover of capital funds from FY 2022/23 to FY 2023/24 and other budget adjustments are described in Attachment 2. Subsequent to the posting of the FY 2023/24 and FY 2024/25 Proposed Biennial Operating Budget, the City Council approved the Community Development Department’s FY 2023/24 Annual Action Plan (AAP) on May 9, 2023. Actions in the Housing and Urban Development Fund are recommended to align with the approved AAP.
On May 2, 2023, the City Council approved Community Development Department staff, in partnership with the County of Santa Clara, to move forward with the Homekey Interim Housing Development Project. This project would enable the development of interim housing at the corner of Lawrence Expressway and Benton Street. As part of this approval, City Council provided direction for staff to return with a budget action appropriating up to $5.5 million from various Housing funds for the operations at the Benton/Lawrence interim housing site. As detailed in Attachment 2, budget actions are recommended in the City Affordable Housing Fund, the City Affordable Capital Fund and the Housing Authority Fund to support this project. Although budgeted, no monies will be expended on this project until City Council approves a final agreement with the County on terms for the release of funds and City requirements for project operations.
A limited number of adjustments are recommended in operating funds to complete projects and deliver programs.
Housing Authority Proposed Budget
The Housing Authority Fund expenditure budget totals $457,193 in FY 2023/24 and $414,581 in FY 2024/25 as shown in the Proposed Budget. The budget allows the City of Santa Clara Housing Authority to continue to manage and monitor housing assets from the dissolution of the Redevelopment Agency. Additionally, funding will be used to support loan monitoring, administration and other programs and projects related to affordable housing.
Sports and Open Space Authority Budget
The Sports and Open Space Authority expenditure budget totals $10,000 in FY 2023/24 and $10,200 in FY 2024/25 as shown in the Proposed Budget. The purpose of the Sports and Open Space Authority is to support the acquisition and preservation of open space within the City and the development of local sports.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environment Quality Act (“CEQA”) pursuant to section 15378(a)(4) of Title 14 of the California Code City of Santa Clara Printed on 6/22/2023Page 5 of 6
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of Regulations in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
With the recommended adjustments detailed in Attachment 2, the FY 2023/24 and FY 2024/25 Proposed Biennial Operating Budget totals $1.6 billion and $1.4 billion, respectively, and the FY 2023/24 Capital Budget totals $657 million in FY 2023/24. These amounts are itemized in the Appropriation Schedule included as Attachment 3.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
1. Approve the Proposed FY 2023/24 and FY 2024/25 Biennial Operating Budget and FY 2023/24 Capital Budget changes, including the recommended revisions detailed in Attachment 2;
2. Approve the Appropriation Schedule for operating funds totaling $1,617,369,144 in FY 2023/24 and $1,374,568,875 in FY 2024/25 and the FY 2023/24 Appropriation Schedule for capital funds totaling $657,486,151 as detailed in Attachment 3;
3. Approve the Housing Authority FY 2023/24 expenditure budget of $457,193 and FY 2024/25 expenditure budget of $414,581 as presented in the Operating Budget;
4. Approve the Sports and Open Space Authority FY 2023/24 expenditure budget of $10,000 and FY 2024/25 expenditure budget of $10,200 as presented in the Operating Budget; and
5. Direct staff to bring forward a separate resolution to increase the Transient Occupancy Tax rate by one percentage point effective January 1, 2024.
Reviewed by: Kenn Lee, Director of Finance
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. FY 2023/24 and FY 2024/25 Proposed Biennial Operating Budget and FY 2023/24 Capital Improvement Program Amendments
2. Revisions to the Proposed Budget, including FY 2023/24 Capital Budget Carryovers and other budget adjustments
3. FY 2023/24 and FY 2024/25 Appropriation Schedule
4. Responses to Questions from the May 9, 2023 City Council Study Session
5. Responses to Questions from the June 6, 2023 City Council Study Session
6. FY 2023/24 and FY 2024/25 Proposed Biennial Operating Budget Budget-in-Brief
7. Tables 1 & 2
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Proposed Operating
Budget
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Transmittal Letter………………………………………………………...………………………....................…...… 7 City Profile………...…………………………………………………………………………………...………………… … 25 Budget and Fiscal Policies.…………………………………………………….…...…………………...…………… … 43 Budget Summary...……………………………………………………………...…………………………...…………… 75 Revenue by Fund...……………………………………………………………………….………...……………… 77 Expenditures by Fund………………………………………………………………..……………...…………… … 80 Transfer Schedule……………......……………………………………..……………....…………...…………… … 83 Summary of Fund Activity…......................................................................................................................... 86 Operating Expenditures by Category…........................................................................................................ 93 Expenditures by Department by Fund Type…....................................................................................... ...... 94 Summary of Budgeted Positions………….…………………...…..……………………………..…...……….......…. 99 Debt Service………….…………………...……………………………….…..…………………..…...……….....…… 103 Ten-Year Financial Forecast……………………..…………………………....…...……….....……...................… 117 Statements of Sources and Uses of Funds……………………..…………………………....…...……..…...…… … 137
General Fund………………………………………………………………………..…………...…...……….......…...… … 139 Special Revenue and Other Funds……………………………………………...……………..…...……..…...…… … 153 American Rescue Plan Act (ARPA) Fund……………………….…………………………..…...……..…...… … 160 Bridge Maintenance District #2 Fund………………………..…………………………..…...……..…...……… … 161 Building Development Services Fund………………………..…………………………..…...……..…...……… … 162 Building Special Programs and Training Fund……………………….…………………………..…...……..….. 164 City Affordable Housing Fund.…………………………..………………………………....…...……..…...……. 165 Community Facilities District No. 2019-1 (Lawrence Station) Fund……………………..…...……..…...…… 166 Convention Center Maintenance District Fund.…………………………………………...…...……..…...…… 167 Developer Traffic Payments Fund..……………………………….................…………...…...……..…...…… 168 Downtown Parking Maintenance District Fund..……………………………...…………...…...……..…...…… 169 Endowment Care Fund……………..………………………………………………………..…...……..…...…… 170 Engineering Operating Grant Trust Fund…………………………………………………..…...……..…...…… 171 Expendable Trust Fund……………………………………………………………………...…...……..…...…… 172 Fire Development Services Fund ……………………………….…………………………..…...……..…...…… 174 Fire Operating Grant Trust Fund ……………………………….…………………………..…...……..…...…… 175 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TABLE OF CONTENTS
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Special Revenue and Other Funds……………………………………………...……….……..…...……..…...…… Gas Tax Fund ………………………………………………………………………………..…...……..………… … 177 Housing and Urban Development Fund ……………………………………………………………..….....…… … 178 Housing Authority Fund ………………………………………………………………………..…...………..…… … 180 Housing Successor Agency Fund …………………………………………………………………..….....…… … 181 Library Donations Trust Fund ……………………………………………………..…...…...…………………… … 182 Library Operating Grant Trust Fund ……………………………………………..…...…...…………………… … 183 Other City Departments Operating Grant Trust Fund ………………………..…...…...……………………… … 184 Parks and Recreation Operating Grant Trust Fund ……………………………………..…...…...…………… … 186 Perpetual Care Fund………………… ……………………………………………..…...…...…………………… … 187 Police Operating Grant Trust Fund………………………………………………………..………………..…... … 188 Prefunded Plan Review Fund ……………………………………………………………………..……………… 190 Public Donations Fund ……………………………………………………………………..………………..…... … 191 Public, Educational, and Governmental Fee Fund ……………………………………...………………..…... … 193 Road Maintenance and Rehabilitation (SB1) Fund ……………………………………..………………..…... … 194 Traffic Mitigation Fund ……………………………………………………………………...………………..…... … 195 Enterprise Funds…………………………………………...………………...………………..…...………… … 197 Cemetery Fund.…………………………………………………………………...………………..…...………… … 203 Convention Center Enterprise Fund…………………………………………………….……...……………….. … 204 Electric Operating Grant Trust Fund ……………………………………………………...……...……………… 205 Electric Utility Fund.……………… ………………………………………………...………………..…...……… … 207 Sewer Utility Fund……………………...…………………………………………………………...……………… . 209 Solid Waste Fund.……………………………………………………………...…………………...……………… 211 Water Recycling Fund……………………………………………………………………………...……………… . 213 Water Utility Fund…………………………………………………………………………………...……………… 215 Internal Service Funds………………………...…………………………………………………..…………………… … 217 Communication Acquisitions Fund…...…………………………………………………………………...……… 221 Fleet Operations Fund….………………………………………………………………………………………….. 222 Information Technology Services Fund…..……………………………………………………………………... … 223
Public Works Capital Projects Management Fund……………………………………………………………… 224 Special Liability Insurance Fund……...…………………………………………………………………………… 225 Unemployment Insurance Fund.…………………………………………………………..……………………… 226 Vehicle Replacement Fund……………………………………………………………………………………… … 227
Workers’ Compensation Fund……..……………………………………………………………………………… 228 Capital Improvement Program Funds………………………...………………………………..……………..…...… … 229 Cemetery Capital Fund.…………………………………………………………………….……………..…...… … 234 City Affordable Housing Capital Fund…………….…………………………………………………..………… … 235 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TABLE OF CONTENTS
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Capital Improvement Program Funds………………………...…………………………………………..…...…..…...
Convention Center Capital Fund…................................................................................................................. 236 Electric Utility Capital Fund…………….…………………………………………………..……………..…...……. 237 Fire Department Capital Fund………………...…………………………………………………………..…...… … 241 General Government Capital Fund………………………………………………………..……………..…...… … 243 Library Department Capital Fund………………...………………………………………....……………..…....… 246 Parks and Recreation Capital Fund.………………………………………………………..……………..…....… 247 Patrick Henry Drive Infrastructure Improvement Fund….............................................................................. 250 Public Buildings Capital Fund..………………………….…………………………………..……………..…...… … 251 Recycled Water Capital Fund……………………… ………………………………….…... .……………..…...… 253 Related Santa Clara Developer Fund………………………………… …………………..... ……………..…... … 254 Sewer Utility Capital Fund ……… ……………………………… ………………………….. ……………..…...… … 255 Solid Waste Capital Fund.……………………… ……………………………… …………...…………… ..…...… 257 Storm Drain Capital Fund …………………………… ……………………………… ……...…………… ..…...… 258 Street Lighting Capital Fund..…… …………………………………………………… ……..……………. .…...… 260 Streets and Highways Capital Fund………………………….……………………………..……………..…...… 261 Tasman East Infrastructure Improvement Fund…........................................................................................ 266 Water Utility Capital Fund……..……………………………………………………………..……………..…...… 267 Other Agency Funds………………………...………………………………..……………….……………………….. … 269 Sports and Open Space Authority Fund………………………… ………………………... …………………..… 272 City Departments…................................................................................................................................................ 273 Mayor and City Council Offices… ……..…………………… ……………….…………… ……………………… … 275 City Attorney's Office ……………..……………………………………………………………………………….. … 285 City Clerk's Office………………………………………………………………………………………………….. … 295 City Auditor's Office………………………….…………………………………………………………………… … 313 City Manager's Office ………………………….……..……………………………..………………………....…… 323 Community Development Department……………………….. .……………………….………………………… 341 Electric Utility Department………………..……………………….…………………………………………….….. 361 Finance Department………… …………………………………. ..…………………………… ………..………… … 397 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TABLE OF CONTENTS
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City Departments……….………………...............................………………………………..……………….......…… Fire Department…………………………………………………………………………………………..………… 415 Human Resources Department…………………………………………………………………………………… 437 Information Technology Department…………………………………………………………………………… … 453 Library Department………………………………………………………..………………………..……………… 469 Parks and Recreation Department………………………………………………………..……………………… . 491 Police Department………………………………………………………..………………………..………….…… … 509 Department of Public Works………………………………………………………..………………………..…… … 527 Water and Sewer Utilities Department………………………………………………………..………………… … 565 Non-Departmental………………………………………………………..………………………..………….…… … 585 Other Agency…................................................................................................................................................. 623 Appendices……………………………………………………………………………………………………………….. … 627 Outside Group Funding………………......... ............................................………....…………………..……… 627 FY 2023/24 Budget Amendments to Adopted Capital Improvement Program Budget……………………... 629 CSMFO Award………………..... ................................................………....…………………..……………… 641 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER April 28, 2023
Honorable Mayor, City Council and Residents of Santa Clara, The Proposed Biennial Operating Budget for fiscal
years (FY)
2023/24 and 2024/25 is presented for consideration and continues the biennial budget process that alternates between an operating and capital budget. This year’s budget focuses on our day-to-day operations that support vital City services. Amendments to the FY 2023/24 capital budget are also included.
As part of the budget deliberation process, two City Council study sessions are scheduled for May 9, 2023 and June 6, 2023 before the public hearing and planned budget adoption on June 27, 2023.
For FY 2023/24, the Proposed Operating Budget totals $1.1 billion.
The enterprise funds that are used to manage the City’s utilities (Silicon Valley Power, water, sewer, and solid waste) represent the largest share of the budget at 54.3%. The General Fund budget totals $280.8 million, or 17.5% of the budget, and is used to fund many direct services, such as police and fire public safety services, libraries, parks, community centers, and streets maintenance.
Over the past few years, there have been significant financial challenges stemming from COVID-19. This necessitated General Fund budget balancing actions starting in FY 2020/21 and continued over the past three years. A combination of strategies has been used to address the budget deficits, including the use of one-time reserves and federal stimulus funds, new revenues, and expenditure reductions. This multi-pronged approach has balanced the competing goals of aligning ongoing revenues and expenditures and minimizing the service delivery impacts to the community. It has also allowed time for General Fund revenues to recover.
This strategy has positioned the City well for the FY 2023/24 and FY 2024/25 Proposed Biennial Budget that solves a smaller projected General Fund deficit.
Budget Milestones:
April 28: Release of Proposed
Budget
May 9: City Council Study
Session on Proposed Budget
June 6: City Council St
udy
Session on Proposed Budget
June 27: Public Hearing and
Adoption of FY 2023/24 and FY
2024/25 Biennial Operating
Budget and Amendments to the
FY 2023/24 Capital Budget
July 1: Start of Fiscal Year
2023/24
7 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER The City’ s financial position has significantly improved since the adoption of the FY 2022/23 budget. The latest Ten-Year General Fund Forecast shows smaller deficits of $8.0 million and $8.9 million in FY 2023/24 and FY 2024/25. This is well below the $27 million deficit projected in June 2022 and reflects stronger revenue growth in several areas as summarized in the Ten-Year Financial Forecast and Economic Outlook discussion below and described in further detail in the Ten-Year Financial Forecast section of this document. While the financial picture is much better, it is important to note that significant economic uncertainty and the risk of a recession persists.
The Proposed Budget continues the multi-pronged approach to solve the deficit with new revenues, one-time and ongoing expenditure savings, and use of reserves. Based on the improved financial position, this budget preserves services with fewer reductions necessary. The expenditure reductions limit direct service impacts, with the goal of stabilizing the services residents access on a regular basis as the organization continues to recover from the COVID-19 service disruptions. As part of this recovery, the City continues to fill vacant positions, which will result in an overall improvement to the services the City provides with the funding included in this budget.
Total Budget Overview
The expenditures in the FY 2023/24 Proposed Budget total $1.5 billion and reflect an increase of 12% from the FY 2022/23 Adopted Budget. In FY 2024/25, the budget decreases to $1.2 billion as a result of one-time Electric Utility and Sewer Utility debt issuances anticipated in FY 2023/24 for capital projects. The issuance of debt financing is also the primary reason the FY 2023/24 Proposed Budget is above the FY 2022/23 Adopted Budget of $1.33 billion. Table 1 summarizes the total proposed budgets by fund group.
Table 1: FY 2023/24 and FY 2024/25 Proposed Budget
Table 1: FY 2023/24 and FY 2024/25 Proposed Budget
Fund Type
FY 2022/23
Adopted Budget
FY 2023/24
Proposed Budget
FY 2024/25
Proposed Budget
General Fund $272,355,355 $280,773,558 $287,458,968
Special Revenue Funds 28,469,289 38,411,889 37,111,226 Enterprise Funds 815,864,620 872,344,414 968,035,945
Internal Service Funds 42,429,153 38,850,861 41,629,602 Debt/Other 19,846,647 374,983,049 40,658,134
Less (Transfers, Contributions,
and Reserves)*
(203,142,482) (509,709,569) (247,780,561)
Subtotal Operating Budget $975,822,582 $1,095,654,202 $1,127,113,314 Capital Funds $357,380,666 $396,879,114 $108,385,754
Less (Transfers, Contributions,
and Reserves)*
(1,454,000) (1,588,205) (1,454,000)
Subtotal Capital Budget $355,926,666 $395,290,909 $106,931,754 Total Budget $1,331,749,248 $1,490,945,111 $1,234,045,068 * Adjusts for transfers, contributions and reserves to avoid double counti ng of the same funds (e.g., internal service funds are excluded)
General Fund Budget Balancing Strategy
8 City of
Santa Clara
Use of
Reserves
Revenue
Solutions
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER The FY 2023/24 and FY 2024/25 Proposed Budget incorporates actions to bring the budget into balance, particularly in the General Fund that represents approximately one-fifth of the total budget. Staff has carefully analyzed all department budget proposals, considering the fiscal year projected resources, anticipated service impacts to Santa Clara residents and businesses, and City Council goals, principles and priorities. The Proposed Budget also factors in recommended changes to FY 2023/24 capital projects, including a street trees replacement project funded by the General Fund Capital Projects Reserve as well as those funded by other funds.
Guiding Framework
The City Council has adopted the following Council Strategic Pillars:
1. Promote and Enhance Economic, Housing and Transportation Development
2. Deliver and Enhance High Quality Efficient Services and Infrastructure
3. Enhance Community Sports and Recreational and Arts Assets
4. Enhance Community Engagement and Transparency
5. Ensure Compliance with Measure J and Manage Levi’s Stadium
6. Manage Strategically Our Workforce Capacity and Resources
7. Promote Sustainability and Environmental Protection
The City Council adopts a set of Budget Principles each year. These Budget Principles provide a general framework and approach for developing the City’s budget, ensuring fiscal stability by considering both the short and long-term impacts of any funding decisions. These principles are generally consistent with those approved last year with the Budget Stabilization Reserve (BSR) continuing to be set at a minimum of 15% of expenditures; this is an exception to the Council policy that would set the BSR at 25% of expenditures. These principles are incorporated as part of the actions considered in this Proposed Budget. The FY 2023/24 Budget Principles can be found in the Budget and Fiscal Policies section of this document.
Summary of Budgeted Positions
The FY 2023/24 Proposed Budget reflects a net addition of 22.25 positions from the FY 2022/23 Adopted Budget level as shown in Table 2 below. Almost all of the changes are Base Budget adjustments, which reflect position changes previously approved by the City Council at a separate City Council meeting. The FY 2023/24 Base Budget adjustments include the following: the addition of 18.0 Firefighter positions funded by the SAFER grant during FY 2022/23; the addition of 10.0 positions funded by SVP, including 8.0 in the Electric Utility Department,
1.0 in the Human Resources Department, and 1.0 in the Finance Department; the addition of 5.0 development funded positions, including 3.0 in the Community Development Department and 2.0 in the Fire Department; the change of an Office Specialist position in the Library from 0.5 to 0.75 FTE and the change of two part-time (0.5 FTE) Librarian positions to one full-time (1.0 FTE) Librarian position; and the freezing of 7.0 positions funded by the Related development based on discussions with Related.
The FY 2023/24 Proposed Budget includes the reduction of 4.0 positions (3.0 frozen positions and 1.0 elimination). In FY 2024/25, the addition of 4.0 positions in the Community Development Department is proposed to support development activity.
The changes by department are described in further detail in Table 2 below and in each department section of this document.
9 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER Table 2: Summary of Position Changes (All Funds)
Summary of Position Changes (All Funds)
FY 2022/23 Budget 1,127.00
Base Budget Changes (Fire SAFER Grant firefighter positions) 18.00 Base Budget Changes (SVP Funded) 10.00
Base Budget Changes (Development Fee Funded) 5.00
Base Budget (Other Changes) 0.25
Base Budget Changes (freeze Related-funded positions) (7.00) Proposed Budget Changes - General Fund Reductions (4.00) FY 2023/24 Budgeted Positions 1,149.25
FY 2024/25 Proposed Additional Positions (Building Fee Funded) 4.00 FY 2024/25 Budgeted Positions 1,153.25
The following table below summarizes the budgeted position changes by department. A detailed summary of Base Budget position changes can be found in the Department sections of this document.
Table 3: Summary of Funded Positions by Department
Department
FY 2021/22
Adopted
FY 2022/23
Adopted
FY 2023/24
Proposed Change
FY 2024/25
Proposed
Mayor and City Council 9.00 9.00 10.00 1.00 10.00
City Attorney 8.00 8.00 7.00 (1.00) 7.00
City Auditor 3.00 3.00 2.00 (1.00) 2.00
City Clerk 6.00 7.00 7.00 0.00 7.00
City Manager 12.50 12.50 11.30 (1.20) 11.30
Community Development 72.00 73.00 75.00 2.00 79.00
Electric Utility 198.00 214.00 222.00 8.00 222.00
Finance 68.75 69.75 70.75 1.00 70.75
Fire 154.50 155.50 173.50 18.00 173.50
Human Resources 14.00 15.00 15.00 0.00 15.00
Information Technology1 6.00 6.00 6.00 0.00 6.00
Library 42.50 42.50 42.75 0.25 42.75
Non-Departmental2 6.50 6.50 5.70 (0.80) 5.70
Parks and Recreation 77.75 77.75 77.75 0.00 77.75
Police 221.0 231.0 231.0 0.00 231.0
Public Works 122.5 123.5 119.5 (4.00) 119.5
Water and Sewer Utilities 73.00 73.00 73.00 0.00 73.00 Total 1,095.00 1,127.00 1,149.25 22.25 1,153.25
1The IT Department partners with a service provider to meet citywide technology needs. 2The City Manager’s Office also oversees the Non-Departmental functions (e.g., citywide administration, Stadium Authority support, communications, community/special programs and initiatives, economic/real estate development, State and federal legislative coordination, etc.).
10 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER Ten-Year Financial Forecast and Economic Outlook
The Ten-Year General Financial Forecast (Forecast) provides policy makers and the public an updated assessment of the City’s fiscal health and serves as a strategic planning tool to assist the City Council, staff, and the public with decision-making as they work to adopt the budget and consider long-term financial strategies for the City. The Forecast also identifies known risk factors and vulnerabilities, and it provides a foundation for evaluating priorities and understanding trade-offs moving forward.
The Forecast compares anticipated ongoing General Fund revenues with base expenditures, which include the projected costs of providing the current level of service. Individual projections of revenues and expenditures are developed based on trend analyses, input from available economic reports, consultant recommendations, departments, updated salary and benefit information, and non-personnel costs. The most current information available is incorporated into the Forecast.
As shown in Table 3 below, this Forecast shows a General Fund shortfall of $8.0 million in FY 2023/24 and $8.9 million in FY 2024/25, with the projected deficit reaching a high of $15.0 million in FY 2028/29 and a low of $7.5 million in FY 2033/34. The projected shortfall of $8.0 million in FY 2023/24 is equivalent to 2.8% of forecasted expenditures.
Table 4: Summary of Funded Positions by Department
FY 2024-2034 General Fund Ten-Year Financial Forecast
($ in millions)
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Projected
Revenues $272.6 $284.9 $297.3 $309.0 $321.2 $333.3 $346.5 $359.7 $373.5 $387.8 $402.7 Projected
Expenditures $280.6 $293.8 $308.2 $320.8 $332.7 $348.3 $360.5 $373.9 $383.3 $396.4 $410.2 Cumulative
(Shortfall)/
Surplus
($8.0) ($8.9) ($10.9) ($11.8) ($11.5) ($15.0) ($14.0) ($14.2) ($9.8) ($8.6) ($7.5) % of
Expenses 2.8% 3.0% 3.5% 3.7% 3.5% 4.3% 3.9% 3.8% 2.5% 2.2% 1.8%
Note: The Forecast does not include the cost to address unme t/deferred infrastructure needs, the cost to fully fund public safety equipment replacement, additional contributions to reserves (Budget Stabilization Reserve, Capital Projects Reserve, Pension Reserve), one-time funding sources, and one-time expenditure needs.
This Forecast reflects a significant improvement from the $27 million General Fund deficit projected in June 2022. This improvement is due to stronger revenue growth in areas such as Property Tax ($6 million), the SVP Transfer ($6 million), the voter approved Business Tax update ($5 million), and the Transient Occupancy Tax accelerated recovery ($2 million). While a structural deficit remains, long-term revenue and expenditure growth are in closer alignment as a result of this stronger revenue performance.
The Forecast, however, does not address significant one-time capital infrastructure needs. Historically, the City 11 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER has funded many of capital infrastructure and equipment needs with one-time funds on a pay-as-you-go basis.
The use of one-time funds as the funding mechanism for capital improvements and various equipment that rely on the General Fund creates challenges. The lack of sufficient one-time funding has resulted in a backlog of unmet/deferred infrastructure needs. Staff will continue to evaluate potential options to create capacity to address those funding needs.
While the Forecast has improved, there are various factors that could have potential positive or negative impacts on the Forecast. These include:
Economic slowdown/recession;
Re-assessment of properties for property tax purposes; State/federal legislative changes and legal challenges; Labor costs outside the budget assumptions;
CalPERS actuarial changes or reform actions;
Unanticipated critical capital/infrastructure needs; and Maintenance impacts and timing of development projects.
Economic Outlook
The budget is presented in a time where significant economic instability is forecasted for the second half of 2023.
The assumptions incorporated into the City’s budget fact or in the analysis provided by the UCLA Anderson Forecasts. These Forecasts are issued quarterly and provide national and State economic outlooks. Economic indicators are mixed, and there is a tremendous amount of uncertainty forecasted for later this calendar year.
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 1 UCLA Anderson Forecast, March 2023, Recession or No Recession? That is the Question 12 City of
Santa Clara
Real GDP Levels, US$ Trillions, Chained 2012 Prices, Seasonally Adjusted Annual Rates US$ Trillions
21.0 20.9
20.8 20.7
20.6 20.5
20.4 20.3
20.2 20.1
20.0 l!U 2
Forecast ➔
20.11 19.9S 19.94
0.0 - -------------t---------
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2022 2023
Source.· UCLA .Anderson Forocast and U.S. Burea u ofEconomic Analysis 20, 06
Q1
20.90 No-Recession
Recession
20.26 Q2 Q3 Q4
2024
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER 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 Given this uncertainty, there is greater risk for varianc es in the economically sensitive revenues, such as Sales Tax, Transient Occupancy Tax and Property Tax. This Forecast assumes moderate economic growth in these areas, with Transient Occupancy Tax continuing to impr ove from the severe COVID-19 impacts. Adjustments may be necessary in future Forecasts depending on actual economic performance.
Employment data has remained positive with low unemploym ent rates. On a national level, the unemployment rate was 3.6% in February 2023. This rate was well below the record setting high of 14.7% in April 2020, and slightly above the pre-pandemic unemployment rate of 3.5%.
U.S. Civilian Unemployment Rate, seasonally adjusted
Note: shaded area represents recession, as determined by the National Bureau of Economic Research Source: U.S. Bureau of Labor Statistics
In the fourth quarter 2022 second estimate, the
Gross Domestic Product (GDP) increased at
an annual rate of 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.
3 2 February 2023 Outlook Survey Summary (nabe.com)
3 https://www.bea.gov/sites/default/files/2023-02/tech4q22_2nd.pdf 13 City of
Santa Clara
16.0 14.0
12.0 10.0
8.0 6.0
4.0 2.0
Pe rcent
Fob Feb
2003 2005
Feb F,b Feb Feb Feb
2007 2009 2011 20 13 2015
Real GOP: Percent change from preceding quarter
40 30
20 10
0 -10
-20
-30
-40
2019
U.S. Bure.iu of Et.0namic Analysls
2020 2021 2022
Se.:tsonally .adjui.tf:ld anm,a l r <1 tes
Feb Feb Feb Feb
2017 2019 2021 2023
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER While recent local news continues to report layoffs at many of the technology companies in the region, employment indices continue to remain strong. The unemployment rates at the state and local level also remain low, with this region outperforming both the nation and California as shown in Table 5 below.
Table 5: Summary of Unemployment Rates
Property values in Santa Clara remain high. In 2022, the median price of a single-family home was $1.8 million, which was up from the 2021 level of $1.64 million as shown in the Single-Family Residential Home Sales chart.
The number of single-family closed sales, however, was down from 659 in 2021 to 515 in 2022. With the rise in interest rates from the historic lows experienced over the last several years, there is risk to this sector. In the first quarter 2023, the median single-family home price was $1.6 million and there were 68 closed sales.
There are significant development projects underway in Santa Clara that will bring new revenues as well as new costs. While the full financial impacts of these developments have not been factored into the Forecast given the uncertainty regarding the timing, the Forecast assumes the continuation of additional development activity in the City. Roughly $700 million to $1 billion in new valuation is assumed annually in the Forecast. To the extent growth is experienced beyond this assumption, this will have a positive impact to the City’s future budget forecast.
Unemployment Rate
(Not Seasonally Adjusted)
Dec
2019
Dec
2020
Dec
2021
Dec
2022
Nation 3.4% 6.5% 3.7% 3.3%
California 3.9% 8.9% 5.0% 3.9%
San José-Sunnyvale-Santa
Clara Metropolitan Statistical
Area
2.4% 6.2% 2.9% 2.4%
Source: California Employment Development Department, U.S. Bureau of Labor Statistics
Data Source: Santa Clara County Association of Realtors 14 City of
Santa Clara
City of Santa Clara
Slngle Family Resident ial Home Sales
$2 ,000 ,000
$1 ,800,000
$1,600 ,000
$1 ,400 ,000
$1,200,000
$1 ,000 ,000
$800 ,000
$600 ,000
$400 ,000
$200,000 1111 II
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
■ Ave . P(ice ■ Med. Price
700
600
500
400
300
200
100
City of Santa Clara
Number of Single Family Closed Sales
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
• ti of aosed Solas
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER General Fund Budget Balancing Strategy
With the projected General Fund shortfall of $8.0 million in FY 2023/24, the budget balancing strategy for the FY 2023/24 and FY 2024/25 Biennial Operating Budget incorporates a combination of increased revenues, one- time and ongoing expenditure reductions, and use of reserves as shown in Table 6 below. This table also includes an ongoing shortfall figure that reflects the average of the projected shortfalls in years three through five of the Ten-Year General Fund Forecast along with the ongoing balancing actions.
Table 6: FY 2023/24 and FY 2024/25 General Fund Balancing
FY 2023/24 and FY 2024/25 Biennial Operating Budget
General Fund Balancing
($ in millions)
FY 2023/24 FY 2024/25 Ongoing
Forecast Shortfall ($8.0 M) ($8.9 M) ($11.4 M)
Increased Revenues
Increased TOT Rate (phased 2%) 0.9 1.7 3.4
Fee Adjustments 0.5 0.8 0.8
One-Time Revenues 0.2 0.0 0.0
Total Revenue Solutions 1.6 2.5 4.2
Expenditure Reductions
Fire SAFER Grant 1.0 3.1 0.0
Police Vacancy Savings 1.6 1.7 0.0
Other Departmental Proposals 2.7 2.7 2.0
Total Expenditure Solutions 5.3 7.5 2.0
Use of Reserves/(Contribution to Reserves)
Budget Balancing Reserve/Other Reserves 1.1 (1.1) 5.2
Total Use of Reserves/(Contribution to
Reserves) 1.1 (1.1) 5.2
General Fund Balancing Total $8.0 M $8.9 M $11.4 M
The budget balancing strategy is intended to preserve services while also maintaining the City’s fiscal stability.
Following is a summary of the budget balancing components that are also discussed in more detail in the individual department sections of the budget document:
Revenue Solutions: Part of the balancing strategy is to factor in increases to specific revenue sources.
In November 2020, Santa Clara voters approved to increase the Transient Occupancy Tax rate by up to 4%, and the first two percentage point increase went into effect on January 1, 2022. The Proposed Budget assumes that the City Council will phase in the remaining increase in FY 2023/24 (1 percent in January 2024) and in FY 2024/25 (1 percent in January 2025), which would increase the rate from 11.5% to 13.5%. The rate increases would generate additional revenue of approximately $0.9 million in FY 2023/24 and increasing to $3.4 million ongoing. These increases will bring the City’s rates slightly above mid-point when compared to other cities in the County. Outreach regarding this proposal occurred with 15 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER several large City hotels earlier in March 2023. Fee adjustments have also been factored into this proposed budget. The fee increases were brought forward and approved by the City Council on April 18, 2023 as part of the adoption of the FY 2023/24 Municipal Fee Schedule. An anticipated increase to the Storm Drain Environmental Compliance fee is also reflected in the FY 2024/25 fee adjustments above.
Expenditure Reductions: one-time expenditure savings in both the Fire and Police Departments are expected to be realized in this biennial budget with no service delivery impacts. In FY 2022/23, the Fire Department was awarded a three-year SAFER grant, which will generate annual net overtime savings ($1.0 million to $3.1 million) during the grant period. In the Police Department, an increase to the Department’s vacancy factor is recommended to align wi th the historical staffing rates over the past decade. This results in no position reduction and provides the General Fund with approximately $1.6 million and $1.7 million in savings in FY 2023/24 and FY 2024/25, respectively. The vacancy factor adjustment will allow the continuation of recruitment or hiring efforts as currently experienced in the Fire and Police Departments. Other departmental reductions limit direct service impacts, and the 4.0 position reductions are in strategic support areas (City Attorney ’s Office, City Manager’s Office, City Auditor’s Office, and the Human Resources Department).
Use of Reserves: In FY 2022/23, the City Council approved the establishment of a Budget Balancing Reserve as part of the FY 2021/22 Budgetary Year-End Close process. This Proposed Budget uses $1.1 million of this reserve in FY 2023/24 and replenishes the amount in FY 2024/25. After the biennial budget period, the use of additional reserves may be necessary depending on the fiscal situation at that time and the budget balancing solutions bought forward.
The proposed budget balancing strategy addresses approximately half of the budget deficit with ongoing solutions. This continues the use of one-time and ongoing actions to bring the budget into balance, allowing time for the City’s finances to recover. This strategy, however, does not provide capacity to restore services or to address the significant backlog of unmet and deferred capital needs.
Proposed Budget Highlights
Budget proposals are recommended to address a portion of the General Fund shortfall, to meet development services needs through fee-funded additions, and to support special and enterprise fund activities.
Highlights of these proposals are provided below and are aligned to the City’s strategic pillars:
Promote and Enhance Economic, Housing and Transportation Development
CDBG and Housing Funds – The City remains committed to maintaining its housing programs to provide aid to its most vulnerable residents. As recommended in the City’s Annual Action Plan, the FY 2023/24 budget includes over $2.0 million of CDBG funds for various public service activities (e.g., including family therapy and advocacy, educational services, senior adult legal assistance, and providing meals to seniors and adults with disabilities) along with funding also set aside for capital projects for affordable housing and public facility improvements. One-time funding fr om the HOME American Rescue Plan is also programmed in FY 2023/24 to provide additional funding for Tenant-Based Rental Assistance and homelessness outreach.
16 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER Convention Center – The Convention Center continues to increase its activity levels compared to the two prior fiscal years given the continued recovery from the pandemic. In FY 2023/24, the Convention Center is projected to have 220 events, with approximately 246,196 in attendance, which reflects over 100% growth in attendance when compared to FY 2022/23 projected attendance. In FY 2024/25, the
Convention Center is projected to have 255 events, with approximately 260,846 in attendance.
Deliver and Enhance High Quality Efficient Services and Infrastructure
City-Wide Services – As hiring continues and vacancies are filled, the City will be able to enhance the services to the public using the funding provided in this Proposed Budget. Improvements are expected in areas such as library services with the expansion of service hours, public safety, maintenance activities, development services, and support for the City’s utilities. The pandemic seriously disrupted the City’s service delivery and the City is still recovering from those impacts.
Community Development – Fee-supported budget
proposals are recommended to improve service and
efficiency and support the high volume of development
activity. These additions include one-time funding for various software and hardware upgrades focused on
bringing efficiencies for staff and flexibility to customers.
Also recommended are the addition of 1.0 Permit
Technician, 1.0 Office Specialist II, 1.0 Office Specialist III, and 1.0 Office Specialist IV to help manage the workload in both the Building Division’s administrative team and Permit Center.
Electric Utility – Proposals are recommended to increase substation maintenance and outage response and repair to ensure the reliability of substations as the number of substations increases and related technology implementations advance, augment undergr ound maintenance and tree trimming services directed at reducing power distribution system outages, enhance generation maintenance so that in-town generation assets are in peak operating condition, and provide a managed training portal software for staff to ensure that all compliance requirements related to system operations tasks are met.
Water and Sewer – In the Water and Sewer Funds, resources are aligned with the expected activity, including adjustments to water purchases, expected contributions to the Regional Wastewater Facility operating and maintenance costs, including the issuance of additional debt in FY 2023/24. The revenue estimates in the water and sewer enterprise funds are also aligned with the expected activity levels and reflect anticipated rate increases.
Capital Improvement Program – Work will continue on improving the City’s infrastructure through the implementation of capital projects approved as part of the FY 2022/23 and FY 2023/24 Biennial Capital Budget. Amendments to the FY 2023/24 capital budget are also included with this document as described in more detail below.
17 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER Enhance Community Sports and Recreational and Arts Assets
Parks and Recreation Capital Improvements – Based
on age, condition and Council established priorities, the City is rehabilitating and expanding its park facilities, amenities and playgrounds for all ages and abilities at Warburton Park, Henry Schmidt Park, Westwood Oaks
Park playground, Montague Park and Central Park
Magical Bridge Playground. The Department is
acquiring, developing and opening new community
buildings at Lawrence Station Area (Nuevo Community
Buildings) and a community arts center at Patrick Henry Drive Specific Plan Area. The Parks and Recreation
Department will begin outreach on a City-wide Parks &
Recreation Master Plan and community input on the
Community Park North in the Related City Place project. Mitigation Fee Act and Quimby Act funds are also being allocated for potential parkland acquisition and will be identified in the City-wide Master Plan.
Enhance Community Engagement and Transparency
Using funding from FY 2022/23, the Library will initiate strategic planning efforts to identify community-based goals for service and to align with City Council priorities.
The Community Development Department will continue to engage with the Santa Clara community to inform and involve community members in both long-range and current land use planning activities.
Ensure Compliance with Measure J and Manage Levi’s Stadium
The Stadium Authority’s stand-alone Fiscal Year 2023/24 Operating, Debt and Capital Budget was adopted by the Stadium Authority Board on March 7, 2023. The $81.3 million budget provides the necessary funding to administer the duties of the Stadium Authority, including support for operating the Stadium for Non-NFL events through a management company, advancement of the FY 2023/24 work plan, payment of debt service obligations, and maintenance of a five-year capital plan. The Adopted Budget included funding for the Neighborhood Stadium Relations Committee and funding of $27.8 million for debt service expenses. The capital budget totals $20.5 million and includes funding for general building, security, furnishings and equipment, and public safety investments.
Manage Strategically Our Workforce Capacity and Resources
Community Development – Two funding shifts are proposed in this budget, including the shift of 0.25 Associate Planner from the General Fund to the Building Development Services Fund and the use of the Advanced Planning Fee Reserve to fund 1.0 Senior Planner that is currently General Fund-funded. The Associate Planner shift will provide more capacity for the Building Division to perform conformance reviews. The Senior Planner position will result in increased ability for the Planning Division to perform long-range planning.
18 City of
Santa Clara
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER Police – While there are no position reductions that are being proposed within the Police Department, an increase
to the vacancy factor from 3% to 7% is included in this budget. The new proposed vacancy factor aligns with the historical average vacancy factor the Department has experienced over the past decade. The Department is currently operating at an approximate 12% vacancy factor; therefore, no service level impacts result from this proposal, and the budget allows for the pace of department hiring to continue as experienced before the pandemic.
Fire – The Proposed Budget reflects changes associated with the Staffing for Adequate Fire and Emergency Response (SAFER) grant, a three-year $11.3 million grant. The grant will partially fund 18 firefighter positions, which included unfreezing 12 positions and adding 6 new positions as approved by the City Council on February 7, 2023 (RTC 23-170). The positions will provide additional relief to help maintain daily minimum staffing of emergency response apparatus and reduce overtime due to absences caused by vacation, sick and disability leaves, resulting in one- time General Fund savings.
Parks and Recreation – A one-time proposal is
recommended to reduce the General Fund subsidy to the
Cemetery Fund in FY 2023/24 and FY 2024/25 due to
increased Cemetery revenues received.
Library – Proposals are recommended to reduce funding for the purchase of library books and materials as well as funding for overtime, utilities, supplies and miscellaneous services, and advertising and community promotion. Library hours are not reduced as a result of these reduction
proposals.
Public Works – Ongoing position allocation shifts for Environmental Program staff and the Compliance Manager will align workloads and shift funding out of the General Fund. Proposed removal of underutilized Streets vehicles and equipment provides ongoing reductions in General Fund vehicle amortization and maintenance and operations. The sale of those underutilized vehicles will provide one- time revenues to the General Fund. To continue to support the development planning and building application review, an increase to the Storm Drain contractual services budget is included and offset by additional revenues.
City Manager and Non-Departmental – A proposal to freeze 1.0 Assistant City Manager is recommended in this budget in addition to the ongoing reduction of the Santa Clara Golf Course maintenance budget, which is no longer needed with the continued Related development on that property.
Strategic Support – The ongoing elimination of 1.0 position and the freezing of funding for the Santa Clara Leadership Program are recommended in the Human Resources Department. The one-time freezing of the City Auditor position and 1.0 Assistant City Attorney position are also recommended.
Budget proposals in the Information Technology Depar tment include a reduction to the cost-of-living 19 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER adjustment for the IT services contract and a reduction in utilities expense. Non-personnel reductions are also recommended in the Finance Department, the Clerk’s Office, and the City Auditor’s Office.
Promote Sustainability and Environmental Protection
Electric Utility – Additional funding is proposed to support the Large Customer Renewable Energy Program (LCRE)
which was approved by City Council on November 16,
2021. Proposals are recommended to expand the electric
transportation acceleration initiatives to ensure Santa Clara is an EV Ready Community by 2030. And lastly,
several initiatives funded by the Greenhouse Gas Program are brought forward in an effort to expedite Greenhouse Gas (GHG) emission reduction. These programs could
include new solar installations, solar installations
combined with battery storage, and solar projects
combined with electric vehicle (EV) infrastructure for City facilities and neighborhood school locations.
General Fund Revenues and Fees
As discussed in the Budget Balancing section above, the Proposed Budget assumes the continued phase-in of the TOT rate increase. In November 2020, Santa Clara voters approved to increase the Transient Occupancy Tax rate by up to 4% from the rate of 9.5%. In FY 2021/22, 2 percent of the 4 percent potential rate increase was implemented effective January 1, 2022. The Proposed Budget assumes that the City Council will implement the remaining 2 percent of the 4 percent potential rate increase in FY 2023/24 (1 percent in January 2024) and in FY 2024/25 (1 percent in January 2025). A separate resolution to bring this forward is expected to be brought forward to the City Council later this calendar year. Outreach of this proposal was conducted in March 2023 with the large hotels in the City.
Fee adjustments have also been factored into this proposed budget. The fee increases incorporated into the FY 2023/24 were brought forward and approved by the City Council on April 18, 2023. This includes additional revenue assumed for the Parks & Recreation Sports Field Reservations Program, Public Works engineering fees, and Community Development fees. The anticipated increase to the Storm Drain Environmental Compliance fee is also reflected in the FY 2024/25 fee adjustments above.
The funding sources also include a one-time transfer of $149,000 from the Vehicle Replacement Fund for the sale of vehicles that will be retired as a budget proposal.
Utility Rate Changes
For the City’s Utility funds, the Proposed Budget is built on the assumption of various rate changes, with some of the key rates highlighted below.
20 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER Table 7: Select Rate Changes for Utility Services
Utility Service
FY 2022/23
FY 2023/24
% Change
Water - Residential per HCF $7.33 $8.01 9.2%
Recycled Water - Irrigation per HCF $4.12 $4.54 10.2%
Sewer - Residential Single Family per month $46.82 $48.34 3.2% Solid Waste - 32 Gallon Cart
(Includes recycling and yard waste charges, and
Annual Clean-up Campaign)
$52.46 $55.40 5.6%
Solid Waste - 3-Cubic Yard Bin
(Serviced one time per week) $398.92 $431.81 8.2%
Electric - Residential per KWH
(Effective January 1, 2024)
Based on average usage of 420 kwh/month
under D1 rate
$0.14298 $0.1553 7%
(Jan 2024)
The water and sewer rate increases represent Water and Sewer Utility staff estimates. Rates are approved by the City Council annually with the 2023 Rate Hearing scheduled for June 6, 2023. Proposed Solid Waste rate increases and a Public Hearing are scheduled to be brought forward to Council on May 23, 2023. The Electric rate displays the average rate for the fiscal year. For FY 2023/24, the rate assumes an increase of 5% effective July 1, 2023, which will be brought forward to Council in May 2023, and a 7% increase starting January 1, 2024 that is expected to be brought forward for City Council consideration by December 2023.
Future Revenue Opportunities
While not incorporated into the budget figures presented in the Proposed Budget, the Administration will continue to evaluate future revenue opportunities that can help address a portion of the remaining ongoing General Fund shortfall, better position the City moving forward, address capital infrastructure needs, and align the City’s revenues when compared with other jurisdictions.
Other potential measures include but are not limited to: 1) addition of a General Obligation Bond to fund capital infrastructure needs; 2) establish a library or community services Parcel Tax; 3) increase to the Property Documentary Transfer Tax; and 4) establish a Utility Tax. Staff will seek direction from the City Council on those measures to potentially pursue.
Amendments to the FY 2023/24 Adopted Capital Budget
The City Council approved the FY 2022/23 and 2023/24 Biennial CIP Budget in June 2022. This action approved a two-year capital budget and presented a five-year capital improvement plan. While the focus of this year’s budget is operations, several budget amendments to the FY 2023/24 Adopted Capital Budget are also recommended. Further detail can be found in the Appendices section of this document. Some of the key budget amendments are summarized below:
21 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER Silicon Valley Power Electric Utility projects ($167.5 million) – funding adjustments to several projects are recommended to reflect current project timelines and necessary project augmentations. Funding will support improvements to
transmission systems, transformers, transmission lines, receiving stations, as well as other infrastructure needs.
Funding is also removed for projects that are not expected to move forward in FY 2023/24 based on the current project timelines. A majority of the increase in funding is due to debt financing for the SRS Rebuild and Replacement, KRS Rebuild and Replacement, NRS-KRS 115kV Line, and the NRS
Transformer and Breaker Upgrades projects
Stationary Standby Generators (-$80,000) – decreases funding to reflect the advancement of some funding from FY 2023/24 to FY 2022/23 as described in RTC 23-1463 approved by Council on February 21, 2023.
Related Permit Work (-$2.0 million) – eliminates this project appropriation as it is directly related to the staffing costs for the 8.0 City positions created to support work on the Related Santa Clara project. Of the 8.0 positions, 1.0 has been shifted to the Building Development Services Fund and the remaining 7.0 have been frozen.
Streets and Highways ($2.0 million) – adds revenue from other agencies and appropriates project funding of $1.5 million to align with the North San Jose Se ttlement agreement for the Tasman Complete Streets Plan 2021 Improvements Phase 1 project and allocates General Fund Capital Project Reserve funding to fund emergency street tree services, tree removals, and tree plantings in FY 2023/24.
Sewer projects (-$4.6 million) – reduces the contributions for the San José/Santa Clara Regional Wastewater Facility based on the latest budget allocation figures provided by the City of San José and an elimination of funding for the Sanitary Sewer System Improvements project to reflect an advancement of that funding to FY 2022/23.
The carryover of unexpended capital project funds from FY 2022/23 to FY 2023/24 is necessary in order to continue or complete projects beyond the current fiscal year. As appropriations lapse annually on June 30 th,
recommendations to carryover funding will be brought forward under separate cover for City Council consideration as part of the budget adoption in June 2023.
22 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER Status of Reserves
The Proposed Budget incorporates reserves in various funds as reflected in the Source and Use Statements.
General Fund Reserves
Budget Stabilization Reserve (BSR) – This reserve is used as an allocation for weathering economic downturns, emergency financial crises or disaster situations. Per Council policy, the Budget Stabilization Reserve (BSR) target is equal to the cost of the City’s General Fund operations for three months, or 25% of the expenditure budget. Given the significant impacts of COVID-19 on the City’s budget, the City Council adopted the FY 2022/23 budget principles that allowed this reserve to drop to 15% of budgeted expenditures. The FY 2023/24 proposed budget principles would also allow the BSR to remain at a minimum of 15% given the City’s continuing fiscal challenges. In the Proposed Budget, the BSR is set at $45.8 million in FY 2023/24 (16.3% of expenditures) and FY 2024/25 (15.9% of expenditures).
Land Sale Reserve – The City Council established the Land Sale Reserve with net proceeds from the sale of City-owned land, with interest earned on these funds being available to be appropriated for General Fund operating expenditures. The Land Sale Reserve has a projected ending balance of $18.5 million for FY 2023/24 and FY 2024/25 and is available for appropriation by City Council action. This reserve balance reflects the full repayment of the loan for the Reed Street-Grant Street Sports Park Project ($5.6 million) in FY 2022/23.
Capital Projects Reserve – The Capital Projects Reserve (CPR) earmarks funds for the Capital Improvement Program (CIP). The minimum target for this reserve is $5.0 million. This reserve has a projected ending balance of $6.1 million in FY 2023/24 and FY 2024/25. The use of $463,050 from the Capital Projects Reserve is recommended for the Street Tree Services project to fund the third and final year of the Modesto Ash tree removals plan.
Utility Fund/Other Reserves
The Utility Funds incorporate various reserves to cover shortfalls in operating revenues, maintain strong bond ratings, cover day-to-day operating costs, and ease the burden on ratepayers associated with large rate increases. These typically include an Operations and Main tenance Reserve (generally set at three months of operations), a construction reserve and a rate stabilization reserve. The Utility Funds also include a Pension Trust Reserve. Select other reserves are set aside in various funds as necessary, such as debt reserves and workers’ compensation and general liability reserve for claims.
Stadium Authority
The Stadium Authority exists as a public body, separate and distinct from the City, and is established to provide for development and operation of Levi’s Stadium. It is structured so that the City will not be liable for debts or obligations of the Stadium Authority. The Stadium Author ity’s stand-alone Fiscal Year 2023/24 Operating, Debt and Capital Budget was adopted by the Stadium Authority Board on March 7, 2023 and can be found at https://www.santaclaraca.gov/our-city/santa-clara-stadium-authority/financial-reports#Stadium-Budget . This budget reflects the revenues and expenditures related to the support of the Stadium; expenditures related to the Stadium Authority can also be found in the General Fund Non-Departmental section of this document.
23 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSMITTAL LETTER Next Steps
As part of the budget deliberation process, two City Council study sessions are scheduled for May 9, 2023 and June 6, 2023 before the public hearing and planned budget adoption on June 27, 2023.
An overview of the Proposed FY 2023/24 and 2024/25 Biennial Operating will be presented at the May 9 th Study
Session.
Summary
The Proposed Fiscal Year 2023/24 and 2024/25 Biennial Operating Budget uses a combination of strategies to balance the budget, including new revenues, one-time and ongoing expenditure reductions, and the use of reserves. This document is intended to provide the City Council and the community with a transparent plan that facilitates discussion of City services and the alignment of proposals with City Council and community priorities.
With the use of one-time and ongoing solutions to address the General Fund shortfall, this budget balances the competing goals of aligning ongoing revenues and expenditures and minimizing the service delivery impacts to the community. This continues the gradual budget balancing approach that has allowed time for the City’s fiscal condition to improve. This budget also presents balanced budget for the City’s many other operating and capital funds. This includes the City’s utility funds that represent the majority of the City’s budget and are primarily supported by user fees.
City departments worked together as a team to prepare this fiscally responsible, balanced budget. The hard work and dedication of City’s Department Heads and employees are greatly appreciated as we continue to recover from the COVID-19 induced impacts. As part of this recovery , the City is working to fill vacant positions, which will result in an overall improvement to the services the City provides with the Proposed Budget funding.
In closing, I want to thank the City Council for our continued strong partnership in supporting vital City services while also ensuring the fiscal health of the City. It is through this strong partnership that we have already overcome significant budget deficits and continued to provide a wide range of public services that our community enjoys.
Respectfully submitted,
Kenn Lee Nadine Nader
Director of Finance Office of the City Manager
24 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | CITY AT A GLANCE
SANTA CLARA AT A GLANCE
The City of Santa Clara (City) has always reflected the progressive, bellwether nature of California. It is one of the oldest cities in the state, an agricultural powerhouse in the 1800s, and the birthplace of many of the technology innovations that created Silicon Valley in the 1900s. Today, it maintains its leading-edge status as a community that is nationally recognized for its livability and a city that has a sustainable, bright future powered by the private investment of billions of dollars in new development and growth opportunities.
History
Santa Clara was incorporated in 1852 as a Charter City with a Council/Manager form of government although it existed as a community for hundreds of years prior to that as a village for the Ohlone and their ancestors. European explorers came to the area in the mid-1700s and settled it as a military and religious outpost. It is called the “Mission City” in reference to the Mission Santa Clara de Asis, which opened in 1777 as one of 21 Spanish missions established by Franciscan padres along El Camino Real in California.
Size
Santa Clara encompasses 18.28 square miles in the hear t of Northern California’s Santa Clara County, also known as Silicon Valley, in recognition of the region’s leadership in technology innovations that changed the way the world lives, works, learns and plays. It is part of the burgeoning South Bay metropolitan area that includes the City of San José, the 10th largest city in the U.S., and the wider nine-county San Francisco Bay Area that is the fastest growing region in the state.
Population
1 The 2022 population of the City of Santa Clara is estimat ed at
130,127 and is one of the most diverse in the nation with about 44% of residents born outside the U.S. The City’s residents are highly skilled and educated, with approximately 63% of adults holding a bachelor’s degree or higher.
The median age is 34 years
and the median household income is reported at $150,244. 25 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | CITY AT A GLANCE Business1
Businesses in City of Santa Clara range from entrepr eneurial start-ups, to longstanding family owned firms, to the international headquarters of Fortune 500 corporations. Millions of square feet of new office and retail projects are under development or in planning stages, greatly expanding the City's capacity to accommodate businesses that want to start, relocate or expand in a high energy, dynamic environment. Some of the largest employers within the City include Advanced Micro Devices Inc., Applied Materials Inc., California’s Great America, Intel Corporation, and Nvidia Corp. In both 2021 and 2022, Silicon Valley (San Jose-Sunnyvale-Santa Clara metropolitan statistical area) was ranked the most dynamic metro area in the United States by Heartland Forward.
City Services
Santa Clara is a full-service city with its own police and fire departments and electri c
, water and sewer utilities. Other core
services include libraries, parks, award winning services and recreational programs for seniors and youth, neighborhood beautification, free citywide outdoor Wi-Fi, special events and support of history and art museums. The City also provides development and planning services, housing programs, and maintenance of the City’s transportation infrastructure. In January 2023, the San Francisco Chronicle used 11 metrics to rank the 25 largest cities in the Bay Area with the best quality of life and Santa Clara was ranked 11
th.
Housing1
There are approximately 46,000 households in the City and housing
stock continues to expand through new transit-oriented developments that offer lifestyle alternatives to the City’s traditional single-family neighborhoods and carefully preserved historic homes. The City is in a metropolitan area that is one of the highest priced housing markets in America. As of January 2023, the median price of a single-family home was $1,487,500. As of March 2023, the average rent for a one- bedroom apartment is $2,713. Santa Clara has invested millions of dollars in affordable housing projects that provide 1,849 units for low income seniors, families, homeless and disabled residents.
Transportation
In addition to approximately 610 la ne miles of City-owned roadways, Santa Clara is crisscrossed by State Highway 101 and El Camino Real (Highway 82) and two re gional County of Santa Clara expressways. Pu blic transit servi
ces in the City include Santa Clara Valley Transportation Authority buses and light rail, Caltrain, Altamont Corridor Express (ACE), Capitol Corridor, and Amtrak. A future extension of BART into the South Bay is underway and will terminate in Santa Clara, and the Norman Y . Mineta San José International Airport borders the City. Santa Clara has also placed a priority on enhancing multi-modal transportations for residents and 26 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | CITY AT A GLANCE businesses by providing additional bicycle facilities throughout the City, adopting a Pedestrian Masterplan, creating a Shared Mobility Program (bicycle and scooter s hare), and is in the process of completing a Creek Trail Network Expansion Masterplan for future expansion of trail facilities to complement the existing San Tomas Aquino/Saratoga Creek Trail.
Education
1 Public schools serving residents of Santa Clara are under the authority of independent school districts. The City works closely with the school districts to provide quality educational opportunities for grades K-12 and students attending Mission College for a two- year degree or professional development. Santa Clara University, the oldest institution of higher learning in California, is in the historic Downtown Quad area of the City and enrolls 5,895 undergraduate students and 3,023 graduate students.
Infrastructure
1 Each year, the City makes significant investments in maintaining, expanding, and improving civic infrastructure for the benefit of residents and businesses. The City has the lowest combined water, sewer, and electric rates in the nine Bay Area counties. The City- owned electric utility, Silicon Valley Power (SVP), is recognized as a Smart Energy Provider from the American Public Power Association for demonstrating a commitment to and proficiency in energy efficiency, distributed generation and environmental initiatives that support the goal of providing safe, reliable, low-cost and sustainable electric service. It is also recognized by the Environmental Protection Agency (EPA) for its Green Power program, which is included on the nation-wide Green Power Communities List. Over the past few years, the City’s water storage
and delivery system has
been upgraded and it is
one of the most successful purveyors of recycled water with 33 miles of recycled water pipelines within Santa Clara’s city limits and about one billion gallons each year. The City is a partner in the San José- Santa Clara Regional Wastewater Facility and is investing approximately $121 million over the next 10 years to update the aging facility and expand capacity. The Water & Sewer Utilities is a past recipient of the California Municipal Utilities Association (CMUA) Resource Efficiency Award for its recycled water program – retrofits for developments. In 2021, the Water & Sewer Utilities system received the Santa Clara Valley Section of the Clean Water Environment Association’s Sewer Collection System of the Year- Medium Size.
27 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | CITY AT A GLANCE Economic Development
The City of Santa Clara welcomes business, and that strategic attitude is paying off with billions of dollars in private investment currently under construction or in the pipeline. As projects come online, the City’s economic base is broadened and diversified, ensuring greater fiscal stability in the future as well as increased revenues to the City’s budget.
Development projects approved over the past fiscal year include several housing and mixed use projects: 1601
Civic Center Drive, which included a General Plan
Amendment and Rezoning for a 100% affordable multi-
family, 106 unit project; and the Greystar mixed use project in the Freedom Circle Focus Area including 1,100 multi- family residential units, up to 2,000 square feet of amenity space and a 2.0-acre public park at 3905 Freedom Circle.
A new data center at 2590 Walsh Ave. is underway,
including demolition of a 115,000 square-foot office and warehouse building, and construction of a 468,170 square- foot four-story data center consisting of eight data center halls and a substation More information on new development projects can be found on the City’s website https://www.santaclaraca.gov/business-development under the “Development Projects” link.
1 California Department of Finance Demographic Research Unit; January 2022 and January 2021 City Population Table US Census QuickFacts, March 2023
Santa Clara County Association of Realtors Market Housing Statistics January 2023 Santa Clara University 2022-2023 Undergraduate Bulletin Zumper Rent Prices –March 2023
Environmental Protection Agency – Green Power Communities Employment Development Department, Major Employers in California 28 City of
Santa Clara
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | CITY AT A GLANCE
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Santa Clara
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FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | CITY AT A GLANCE 30 City of
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Community Profile 11
Geography
Persons. per Sq1uare Mile
Santa Clara: 6,984.
County: 1,499
P·opulation
Santa Clara County
13,0,127 1 894,783
Age
Santa Clara County
Median Age
37.2 years
Mecil:ian A,ge
34 years
Ag:e 1.8-64 ~
70%
Age 18..J64~
64%
Foreign Born
Santa. Clara: 441)/o
County : 40%
Median Family Income
Santa Clara County
5150,244 $140 258
Land in Sq1111a.r-e Miles
Sa1nta Cil.ara: 18.28
County: 1,291
Diversity•
■ a.'.f a'SaJ11a 0 1:arra ■ Gol!lrntyof Sarita Clara
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looia1l, American
Pacific
Islander or
n;i!<ed race
Education
Hig h Schoo l Grn duate or Hig her
Santa Clara
9'4%
County
89¾
Baclhefor's De gree or Higher
Santa C Iara County
6.3% 54¥11
Labor Market
Lalbor Fo1rce
Santa. Clara~ 74,000
County: 1,055,200
Une.mployme n't Rate
Santa Clara : .2.1 %
County : 2.4%
1US Gen.slll'.s QuickF,:1cJ.s lf;ucJi W 23; CA EDD- La•bo,r Marlret i'nfo a.s ,of Decem ber 2022: CA l)eot 01 Fiiilanre !Jemcg.,ap;ruc R&earch Uni Data USA Santa GJ'a.ra
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SANTA CLARA COMPARISON TO OTHER LOCAL CITIES
SANTA CLARA COMPARISON
TO OTHER LOCAL CITIES IN THE LOCAL REGION
The following graphs compare FY 2022/23 per capita revenues from key sources and total budgeted expenditures for FY 2022/23 in the City of Santa Clara to other cities in the local region. Sales tax, property tax, and transient occupancy tax categories are included as they are the largest economically sensitive General Fund revenue sources for the City.
Expenditure data for selected city budgets in relation to their respective population is included for all funds and the General Fund for FY 2022/23. The assets per capita for FY 2021/22 are also shown. It is important to note Santa Clara and Palo Alto include City-owned utilities that result in relatively higher budgets and assets per capita.
Source: City of Milpitas FY 2022/23 Adopted Budget
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
FY 2022/23 Property Tax Per Capita
31 City of
Santa Clara
I I
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SANTA CLARA COMPARISON TO OTHER LOCAL CITIES
Source: City of Milpitas FY 2021/22 Adopted Budget
$0
$100
$200
$300
$400
$500
$600
$700
FY 2022/23 Sales Tax Per Capita
Source: City of Milpitas FY 2022/23 Adopted Budget
$0
$50
$100
$150
$200
$250
$300
FY 2022/23 Transient Occupancy Tax Per Capita
Source: City of Milpitas FY 2022/23 Adopted Budget
32 City of
Santa Clara
I I I
- - - ■ I I I I I I
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SANTA CLARA COMPARISON TO OTHER LOCAL CITIES Source: Each city FY 2022/23 Adopted Budget
Source: Each city FY 2022/23 Adopted Budget
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
FY 2022/23 General Fund Revenue per Capita
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
FY 2022/23 General Fund Expenditures per Capita
33 City of
Santa Clara
1 I I I I I I I
1 I I I I I I I
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SANTA CLARA COMPARISON TO OTHER LOCAL CITIES Note: For Budget (All Funds) and Assets tab
les, the budgets for Santa Clara and Palo Alto
include City-owned utilities that account for a significant portion of the budget.
Source: Each city FY 2022/23 Ad
opted Budget
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
FY 2022/23 Budget (All Funds) per Capita
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
FY 2021/22 Assets per Capita
Source: Each city FY 2021/22 Annual Comprehensive Financial Report * Each city FY 2020/21 Annual Comprehensive Financial Report 34 City of
Santa Clara
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FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | ROSTER AND MANAGEMENT TEAM Roster of City Council and Commission Members*
City Council
Mayor Lisa M. Gillmor
Councilmember District 1 Kath y Watanabe
Councilmember District 2 Ra j Chahal
Councilmember District 3 Karen Hard y
Councilmember District 4 Kevin Park
Councilmember District 5 Sudhanshu “Suds” Jain
Councilmember District 6 Anthon
y J. Becker
Board of Librar
y Trustees Civil Service Commission
Jonathon Evans
Jan Hintermeister
Leonne Brou
ghman
Debbie Tryfonos
Stephen Ricossa
Franklin J. Felizardo
Tahir Naim
Carol
yn McAllister
Willie D. Brown, Jr.
John Casey
Cultural Commission
Historical and Landmarks Commission
Candida Diaz
Louis Samara
Debra von Huene
Jonathan Marinaro
Paul McNamara
Siddarh Sundaram
Patricia Leung
Ana Vargas-Smith
Michael Celso
Me
gan Swartzwelder
Kathleen Romano
Amy Kirby
Ed Stocks
Housin
g Rehabilitation and Loan Committee Parks and Recreation Commission Carmen Pascual Darius Brown Kelly Cox
Dana Caldwell
Maureen Reilly Chu
Burt Field
Eversley Forte
Sajid Hai
Brittany Ricketts
Plannin
g Commission Salary Setting Commission
Priya Cherukuru
Yashraj Bhatnagar
Nanc
y A. Biagini
Lance Saleme
Qian Huang
Mario Bouza
Eric Chu
Marjorie Banko
MV Kuma
r
John Sontag
Ram Misra
Senior Advisor
y Commission Youth Commission
Nancy Toledo
Grant L. McCauley
Rick Andrews
Edmund Drozek
Tom Freitas
Judy Hubbard
Veena Sterling
Simren Garg
Aarav Gupta
Fatimah Ismail
Jasmine Kelly-Tanti
Khadeejah Khan
Ryan Kim
Kira Liang
Keith Maben
Malia Martin
Samaira Mehta
Hiranya Parekh
Sudeepthi Ravipati
Rajvi Khanjan Shroff
Samarth Suresh
Sarah Zuo
*As of March 2023
35 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | ROSTER AND MANAGEMENT TEAM Executive Management Team*
City Manager
Jovan D. Grogan
City Attorney City Auditor
Glen Googins Vacant
City Clerk Chief Operating Officer
Hosam Haggag Nadine Nader
Assistant City Manager Chief of Police
Cynthia Bojorquez Pat Nikolai
Fire Chief Director of Human Resources
Ruben Torres Aracely Azevedo
Director of Finance
Director of Parks and Recreation
Kenn Lee James Teixeira
Director of Information Technolo
gy City Librarian
Gaurav Garg Patt y Wong
Chief Electric Utilit
y Officer Director of Water and Sewer Utilities
Manuel Pineda Gary Welling
Director of Public Works
Director of Community Development
Craig Mobeck Andrew Crabtree
*As of March 2023
36 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | CITY ORGANIZATION CHART
CITY ORGANIZATION CHART
Mayor and Council City Clerk (Elected) Chief of Police (Elected) Boards and
Commissions
Finance
Electric Utility
Community
Development
City Clerk’s Office Police
City Departments
City Auditor City Attorney City Manager
Electorate
Fire
Human Resources
Public Works
Parks and Recreation
Library
Water and Sewer
Utilities
Information Technology
37 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | CITY ORGANIZATION CHART City Organization by Department/Division/Program
Mayor and City Council Offices
Mayor and City Council
1611 – City Council Program
City Attorney’s Office
City Attorney
2411 – Program Administration
2412 – Program Litigation
City Clerk’s Office
Elected City Clerk
2314 – Elections
Assistant City Clerk
2311 – Council/Administration Support
2312 – Public Information/Legislation
Records Management
2313 – Political Reform Act
City Auditor’s Office
City Auditor
3352 – City Auditor Administration
3353 – City Auditor Services
City Manager’s Office
City Council Support
1021 – Policy Support for Decision Making
1022 – Intergovernmental Relations and
Advocacy
Leadership and Management Services
1031 – Day-to-Day Operations
1032 – Strategic Planning
1033 – Community Outreach and
Engagement
Community Development Department
Building
5532 – Plan Review and Permit Services
5533 – Field Inspection
5534 – Housing Inspection
Housing and Community Services
5542 – Federal State Grant
5543 – Neighborhood Conservation and
Improvement Program
5544 – Community Development
5545 – Affordable Housing
5546 – Housing Authority
5547 – City Affordable Housing
5548 – Community Development Housing
Successor
Planning
5522 – Development Review
5523 – Advanced Planning
5524 – Historical Preservation
5525 – Code Enforcement
38 --------------,
-------,
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | CITY ORGANIZATION CHART Electric Utility Department *
Administrative and Business Services
1311 – Financial Services
1316 – Administrative Services
Customer Development and Project
Management
1361 – SVP Engineering
Resource Planning and Engagement
1312 – Public Benefits
1313 – Key Accounts
1315 – LCRE Program
1317 – Fiber Program
1319 – SVP Electric Vehicle Program
1325 – Greenhouse Gas Program
1356 – Resource Management
1358 – Risk Management and Settlements
Revenue and Resources
1321 – Revenues and Resources Costs
1326 – Resource and Production
Utility Operations
1324 – Electric Compliance
1351 – SVP System Support
1362 – Power System Controls
1371 – Communications & Meter Technical
Support
1372 – Substation Maintenance
1376 – Transmission & Distribution
1377 – Generation Maintenance
* This reflects various program and division changes effective FY 2023/24. For more information, refer to the Electric Utility Department Section – Budget Summaries.
Finance Department
Accounting
3322 – General Accounting
Administrative Services
3362 – Citywide Fiscal Planning
Budget
3315 – Budget and Financial Analysis
Municipal Services
3332 – Utility Billing Services
3333 – Revenue Receipting/Cashiering
3334 – Business Certificate
3335 – Field Services
3336 – Administration
3337 – Contact Center/Communication
Purchasing
3341 – Warehouse
3343 – Purchasing
3344 – Mail Services
Fire Department
Administration
7811 – Administration
Community Risk Reduction
7831 – Administration / Investigation /
Education
7832 – Prevention and Hazardous Materials
7833 – Certified United Program Agency
(CUPA)
7834 – Development Services
7835 – Non-Development Services
7836 – Development CUPA
7837 – Non-Development CUPA
Emergency Medical Services
7861 – Emergency Medical Services
Field Operations
7822 – Emergency Response
Office of Emergency Services
7871 – Office of Emergency Services (OES)
Training
7841 – Training – Fire
39 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | CITY ORGANIZATION CHART Human Resources Department
Employee Benefits and Records
2514 – Records – Compensation
2515 – HR Workers’ Compensation & Safety
Recruitment, Classification and Staff
Development
2521 – Selection – Classification
2525 – Recruitment, Staff Development and
Labor Relations
Information Technology Department
Contract Services
1931 – Contract Services
Enterprise Services
1911 – Application Services
1912 – IT Web Services
1913 – GIS Services
Infrastructure and Support
1921 – Infrastructure and Support
Telecommunication Services
1941 – IT Telecommunication Services
Library Department
Administration
1221 – Administration
1263 – Literacy Grants
Adult Services
1234 – Read Santa Clara
1241 – Reference and Adult Collections
1244 – Local History
Branch Services
1233 – Mission Library
1235 – Northside Branch
1236 – Bookmobile and Mobile Library
Services
Customer Services
1245 – Customer Services
Facilities
1271 – Facilities
Technical and Technology Services
1251 – Technical Services
1272 – Technology
Youth Services
1231 – Youth Services
1232 – Library – Young Adult
Parks and Recreation Department
Administration
1121 – Administration
1122 – Park Development
1123 – Park Projects
1151 – Teen Activities
1157 – Special Recreation
1171 – Citywide Special Events
Cemetery
0125 – Perpetual Care
0131 – Endowment Care
1162 – Maintenance of Grounds
1163 – Maintenance of Buildings
1164 – Operations
Parks
1132 – Parks
1133 – Pools
1134 – Buildings
1135 – Operations
Recreation
1141 – Health and Wellness
1142 – Recreation – Administration
1143 – Youth Activity Center and Programs
1144 – Senior Center & Therapeutic
Recreation Programs
1145 – Community Recreation Center and
Programs
1146 – Recreation Facilities
1147 – Aquatics
1148 – Sports and Athletics
1149 – Teen Center Activities and Programs
Senior Nutrition Program
1112 – Senior Nutrition Program
40 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | CITY ORGANIZATION CHART Police Department
Administrative Services
7742 – Administration
7744 – Professional Stand
7745 – Department Support
7746 – Community Services Police
7747 – 911 Dispatch/Communications
7752 – Police Grants
Communication Acquisitions
7781 – Communication Equipment
Amortization
Field Operations
7722 – General Patrol
7723 – Traffic
7724 – Emergency Response/Temporary
Holding Facility
Investigations
7732 – General Investigation
7733 – Special Enforcement Team
7734 – Records
Special Operations
7761 – Special Operations General
7764 – Special Operations – Specialized
Teams
7765 – Special Operations – Reserves
Department of Public Works
Engineering – Administration
4411 – Administration – General Services
4412 – Administration – Developer Projects
4413 – Administration – Capital
Improvement Projects
Engineering – Design
4441 – Design – General Services
4442 – Design – Developer Projects
4443 – Design – Capital Improvement
Projects
Engineering – Field Services
4461 – Field Services – General Services
4462 – Field Services – Developer Projects
4463 – Field Services – Capital
Improvement Projects
Engineering – Land and Property
Development
4451 – Land and Property Development –
General Services
Department of Public Works
4452 – Land and Property Development –
Development Support
Engineering – Traffic
4431 – Traffic – General Services
4432 – Traffic – Developer Projects
4433 – Traffic – Capital Improvement
Projects
4434 – Traffic Signal Management
4435 – Traffic Striping and Signing
Facility Services
2222 – Maintenance Repair
2223 – Janitorial
2961 – Convention Center Maintenance
District
Fleet Management
2111 – Fleet Acquisitions
2123 – Fleet Operations
Streets
2911 – Street Maintenance
2921 – Storm System Maintenance
2924 – Non-Point Source
2931 – Garbage Collection
2932 – Clean Green Collection
2933 – Clean Up Campaign
2934 – Residential Recycling
2935 – Street Sweeping
2936 – Household Hazardous Waste
2941 – Parking District Maintenance
2951 – Landscape Maintenance
2952 – Street Tree Program
2971 – Traffic Maintenance
41 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | CITY ORGANIZATION CHART Water and Sewer Utilities Department
Recycled Water Program
1522 – System Maintenance
1525 – South Bay Water Recycling
Maintenance
Sewer
1511 – System Administration
1512 – System Maintenance
1514 – Operations
1515 – San José-Santa Clara Water
Pollution Control Plant
1516 – Storm Pump Maintenance
1519 – Debt Service
Solar Utility
1532 – Solar – System Maintenance
Water Construction, Maintenance, Operations
1422 – Water System Maintenance
1423 – Water Construction
1424 – Water System Operations
Water Engineering, Compliance, Conservation
1411 – Administrative Design
1412 – Water Quality
1413 – Water Resources
Non-Departmental
Citywide Programs
3611 – Citywide Programs
Citywide Strategic Programs & Initiatives
3631 – Citywide Strategic Programs &
Initiatives
Stadium Operations
3621 – Stadium – General Administration
3622 – Stadium – Police
3623 – Stadium – Fire
3624 – Stadium – Public Works
3625 – Stadium – Information Technology
42 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET AND FISCAL POLICIES
BUDGET AND FISCAL POLICIES
We present the relevant policies and practices that define specifically the way the City manages its budget, reserves, interfund loans, investments, and debt with the goal of long-term fiscal sustainability. The City Council reviews and approves budgetary policies as part of the annual budget process. Investment and debt policy statements are referenced in this section; however, re viewed and approved by the City Council under separate cover.
Appropriation Control
The City Council is responsible for approving the appropriation of fiscal resources to cover estimated expenditures for each fiscal year. Expenditures are appropriated in each fund to departments, offices, and agencies for various goods, services, and capital projects described in the budget. The legal appropriation control is established at the department level in each fund. For select funds where expenditures are not allocated to a specific department, the appropriation control is established at the fund level. For capital funds, the appropriation control is at the project level. Transfers of funding between budgetary funds require City Council appropriation and approval. City Council approval is required for a budget amendment during the fiscal year which may include the use of reserves or fund balances, and approval of appropriations of grant monies. Per Article XIII, Section 1305 of the City Charter, appropriations lapse at the end of each fiscal year; therefore, unencumbered funds allocated for specific projects, donations, and grants require City Council appropriation for use in the following fiscal year.
Budgetary transfers between accounts or expenditure category may be done through Finance Department or City Manager’s Office approval as long as they are conducted within the legal appropriation control limit set by the City Council.
Balanced Budget
The City Council considers General Fund budget decisions with long-term implications based on information from the Ten-Year Financial Forecast. One-time source s are used to cover one-time uses. The budget is structurally balanced when forecasted ongoing sources cover ongoing uses. Budgets shall be structurally balanced to the extent possible. Reserves should be considered to balance a budget only in the context of a plan to return to a structural balanced budget.
Budget Monitoring and Reporting
Financial reports on actual performance in relation to budget are prepared by the Finance Department through monthly financial statements. These reports are prepared and presented to the City Council, per City Charter requirements (Section 802) the City Manager shall be requir ed to keep the City Council advised of the financial condition and future needs of the City. City Departments are responsible for reviewing these monthly financial reports and identifying potential budget problems and recommending corrections through budget amendments.
Long Term Financial Forecast
The Finance Department prepares a Ten-Year General Fund Financial Forecast which is incorporated into the budget planning process and presented to the City Council annually. This forecast is updated annually and considers current and future economic conditions, revenue projections, and spending scenarios based on the 43 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET AND FISCAL POLICIES latest available assumptions. Capital improvement plans are created and published on a five-year basis to provide a long-term plan of the City’s capital funding plan.
Municipal Fees and Charges
User fees are reviewed and adjusted for on an annual basis with the goal of maximizing cost recovery. The City Council may consider and approve any fee that is below 100% cost recovery, requiring a General Fund subsidy if it is in the public’s best interest. User fees are adopted by the City Council annually through the Municipal Fee Schedule. Utility fees and certain other fees and assessments can also be approved separate from the Municipal Fee Schedule. Parks and Recreation fees are established by the Parks and Recreation Director and published in the Activity Guide.
Capital Planning
The City Council reviews and adopts a two-year Capital Im provement Program Budget which includes a five- year capital improvement program. Projects included in t he capital improvement program are to be consistent with the City’s General Plan. Per State Government Code Section 65401, the Planning Commission reviews the capital improvement program for conformance to the City’s General Plan and proposes recommended considerations for the City Council. Funding sources are identified for all projects included in the capital improvement plan.
The Capital Improvement Program (CIP) is submitted by City departments and reviewed by the City Manager’s Office, the Finance Department, and the Public Works Department. The review process considers City priorities and identifies the most urgent projects for capital funding by program area, master plans, or needs assessments which identify the most critical projects for repair and replacement.
Department of Public Works staff reviews project estimates and evaluates the current bidding environment.
Project contingency reserves are established based on the type of project and the project estimate type (engineering or preliminary estimates). Operating and maintenance costs are identified for planning purposes when projects are completed and come online.
General Fund Reserves
The City Council allocates available resources to General Fund contingency reserves through various reserves designated for emergency use or restricted future uses. Restrictions are established by policy, or through legally segregated development-related fee reserves collected from users.
Budget Stabilization Reserve – is used as an allocation for weathering economic downturns, emergency financial crises, or disaster situations. The reserve target is equal to the cost of the City’s General Fund operations for three months (90-day working capital reserve). Capital Projects Reserve – is used to support the City’s CIP. The minimum target is $5.0 million with a goal of having sufficient funds to fund capital projects included in the City’s biennial capital budget and five-year CIP.
Land Sale Reserve – this reserve allocates proceeds from the sale of City-owned land Advanced Planning Fee Reserve – this reserve allocates a portion of user fees for the update and amendment of the City’s General Plan. Individual user fees are included and approved under separate cover as part of the Municipal Fee Schedule.
44 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET AND FISCAL POLICIES Utility Funds Reserves
The City is responsible for operating and maintaining several utilities, including electric, potable water, recycled water, and sewer. Regular cost of service studies are performed to evaluate rates and charges for each utility with forecasted revenue requirements and projected expenditures. One component of this analysis is the determination of adequate reserve levels to cover shortfalls in operating revenues, address unforeseen operating and capital expenditures, cover day-to-day operating co sts during emergency situations, maintain strong bond ratings, and ease the burden on ratepayers associated with large rate increases. The following reserves address these needs:
Operations and Maintenance Reserve – this reserve is used to cover day-to-day expenses, address unforeseen cost increases or revenue shortfalls, and protect against emergency financial crises or disaster situations. The reserve target is equal to the cost of the individual utility’s operations for three months (90-day working capital reserve). Due to large fluctuations and variability in the energy market, the Electric Utility Operations and Maintenance Reserve has a target ranging from 90 to 180 days of operations. For the Electric Utility, the Operations and Maintenance Reserve, together with the Rate Stabilization Reserve (as described below), comprise the Electric Utility Rate Stabilization Fund established and maintained by the Electric Utility for purposes of its bond indenture. Infrastructure Reserve – this reserve is used to support each utility’s CIP or fund unforeseen and unbudgeted capital costs. The reserve target is equal to an average annual CIP budget, as calculated over a 48-month period of budgeted CIP expenses as presented in the Biennial Capital Improvement Program Budget. At minimum, the target is to reserve 20% of the average annual CIP budget amount.
For the Electric Utility, this reserve is based on an analysis of critical infrastructure, the likelihood for replacement, and the estimated replacement costs, evaluated regularly by SVP. Rate Stabilization Reserve – this reserve is used to absorb short-term revenue shortfalls and is designed to stabilize utility rates and avoid wide swings in rates charged to utility customers over time. The minimum reserve target is a balance equal to 10% of each utility’s projected current year rate payer revenue. For the Electric Utility, the Rate Stabilization Reserve, together with the Operations and Maintenance Reserve (as described above), comprise the Electric Utility Rate Stabilization Fund established and maintained by the Electric Utility for purposes of its bond indenture. Special Projects Reserve – this reserve sets aside funds for large or longer-term CIP projects or other special purposes to lessen fluctuations in rates and support long-term planning efforts. While no general target is established for this reserve, the amounts will be established by each utility based on need.
In addition to the reserves cited above, reserves may be established to address specific needs or requirements of an individual utility. This may include required reserves in restricted funds, such as the reserves in the Electric Operating Grant Trust Fund for public benefits, low carbon fuel, and greenhouse gas.
45 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET AND FISCAL POLICIES Other Reserves
The City may include additional reserves set aside for specific purposes based on legal, policy, or budgetary purposes. Some of these include reserves for historical preservation, pension costs, vehicle or fleet replacement, workers’ compensation costs, or to fund potential future general liability claims against the City.
Pension Stabilization Reserve – this reserve sets aside funds to address the City’s pension unfunded accrued liability. The targeted annual funding contribution is 1% of the City’s unfunded pension liability.
Interfund Loans and Advances
Interfund loans are loans from one City fund to another City fund for a specific purpose, with a requirement for repayment. Interfund loans should be short-term in nature and shall not be used to solve ongoing structural budget deficits. The department managing the borrowing fund should complete the interfund loan agreement.
The agreement should include the amount requested, loan period, description of the loan, and repayment terms.
Interest shall accrue at the City’s pooled investment rate at the time of the loan approval. A summary of any outstanding loans is included in the City's Annual Comprehensive Financial Report and Biennial Budget. In addition, advances from the General Fund that have been approved by the City Council may be paid back by other revenue sources.
Investment Policy
The City undertakes investment related activities that are made with prudence. On an annual basis, the City formalizes these activities in the Investment Policy Statement which is adopted by a resolution of the City Council (https://www.santaclaraca.gov/home/showdocument?id=66753). The policy is to invest public funds, including bond proceeds, reserves and other special City funds, in a manner which will provide maximum security while meeting the daily cash flow demands of the City and providing the highest investment return and conforming to all state and local statutes governing the investment of public funds.
The City of Santa Clara Charter gives the Director of Finance the authority and responsibility to deposit and invest all City funds. It authorizes the Director of Financ e to invest the City’s idle cash in allowable investment vehicles with a maximum remaining maturity of five years by settlement date. The City Council may grant express authority either specifically or as part of an approved investment program to invest in vehicles with remaining maturity that exceeds the five-year restriction. Authority must be given to the Director of Finance at least three months prior to the investment. California Government Code also allows the City to invest in the same investment vehicles as authorized by the City Council. The Director of Finance establishes written depository and investment policy procedures for the operation of the investment progr am consistent with the City Investment Policy, establishes a process of independent review by an external auditor, and provides monthly investment reports to the City Council.
46 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET AND FISCAL POLICIES Debt Policy
The City believes that debt is an equitable means of financing projects and represents an important source of meeting fiscal responsibilities. The City obtains and m aintains long-term debt for large capital improvement projects. The Finance Department manages the City’s debt with prudence, diligence, and attention to prevailing economic conditions and applicable laws. It manages issu ance of debt, administers debt proceeds, prepares ongoing disclosure, handles debt and tax compliance, and makes debt service payments. City departments with debt-financed capital programs coordinate with the Finance Department in implementing and handling debt related transactions. Semiannual updates are prepared by the Finance Department on outstanding debt for the City of Santa Clara, its Agencies, and Corporations. This report is presented as a standard management practice that provides a valuable overview of the current status of the City’s long-term debt obligations. The current City Council approved debt policy can be found online at: (http://santaclaraca.gov/home/showdocument?id=63748).
Donation Policy
Donations may be offered in the form of cash, real or personal property. “Designated” donations are donations where the donor specifies intended use by a particular City department, location, or purpose. “Undesignated” donations are given to the City as a whole, for an unspecified use. Donations of any kind which might be perceived or interpreted as an attempt to influence actions of the City Council or City Administration will not be accepted. All donations are presented to the City Manager for compliance with the policy. As part of the annual budget process, for anticipated monetary donations, staff will bring forward for Council consideration a balanced appropriation for revenue and expenditures to facilitate the acceptance of donations throughout the fiscal year.
Donations valued at $100,000 or greater require City Council acceptance and appropriation of funds. Donations valued less than $100,000 may be accepted with the monetary donations available to departments for expenditure as part of the adoption of the annual budget. A report of all donations received by the City is presented to City Council as part of the Monthly Financial Report. The appropriation of anticipated donations can be found in each respective City department and corresponding Source and Use of Funds Statement in this document.
Community Grants Policy
The budget includes an allocation of $100,000 for Community Grants to offset the cost of City fees in support of the Council approved Community Grants Policy. Annually, and subject to availability of funds, the City Council shall establish grant appropriations as part of the approval of the budget. Community grants, subject to availability of funds, shall not exceed $10,000 per applicant, per year. To receive grant funds, grant applications must be submitted at least 90 days before the planned event/activit y being funded, regardless of the form of the grant, and will be evaluated by the City Manager’s Office on a case-by-case and “first come-first served” basis, throughout the fiscal year. Applicants are encouraged to submit their applications at the beginning of the fiscal year, for events or activities occurring at any time during that fiscal year, to maximize opportunity for availability of funds. The City Manager’s Office shall approve or deny an applicant’s request based upon eligibility criteria, and subject to funding availability as approved by the City Council through the adoption of the annual budget.
Grants for community events shall not be provided for waiver of or reimbursement for already discounted permit fees. Grants for attendance at youth state, national, or international competitions or performances shall be limited to costs of registration, hotel, transportation, and food for participants and coaches/chaperones only. Due to short notice, to advance to state, national, or international competitions, applicants shall submit an application within one week of advancing to such competitions. In all cases, the City reserves the right to reject any and all applications in the event the City Manager’s Office identifies a potential conflict of interest or the appearance of a conflict of interest. Submission of an application in no way obligates the City to award a grant and the City reserves the right to reject any or all applications, wholly or in part, at any time, without penalty. 47 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET AND FISCAL POLICIES Stadium Authority Policy
The Stadium Authority exists as a public body, separate and distinct from the City, and is established to provide for development and operation of Levi’s Stadium. It is structured so that the City will not be liable for debts or obligations of the Authority. The governing board duties and the fiscal policies that govern the Stadium Authority are included in the stand-alone Operating, Debt, and Capital Budget that is adopted by the Stadium Authority Board. This can be found at https://www.santaclaraca.gov/our-cit y/santa-clara-stadium-authority. This budget reflects the revenues and expenditures related to the support of the Stadium and can also be found in the General Fund Non-Departmental section of this document titled Stadium Operations.
Policy Development
Staff has established this Budget and Fiscal Policies section in an effort to improve governance, transparency, and establish policies to govern the budget. These policies will be reviewed annually and enhanced as capacity allows.
48 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET AND FISCAL POLICIES
OUTSTANDING LOANS AND ADVANCES
Interfund loans are loans from one City fund to another City fund for a specific purpose, with a requirement for repayment. A detailed listing of outstanding loans and advances is included in the following table:
Receiving Fund Originating Fund
Loan/Advance Details
(Payback Source, Term, Interest
Rate)
Outstanding Amount
(as of June 30, 2022) *
Parks and
Recreation Capital
Fund
General Fund
(May 22, 2018, RTC
18-124) Loan for the
Reed Street – Grant
Street Sports Park
Project from the
Land Sale Reserve
This loan bears interest based on
the City’s weighted average
portfolio rate. This loan will be
repaid in annual installments from
Mitigation Fee Act revenue (25%
of the revenue is allocated for loan
repayment) until the loan is paid in
full.
$ 5,539,540
Total Interfund Loans and Advances $ 5,539,540
* The loan was fully repaid on March 21, 2023 (Report to Council 23-316) from Mitigation Fee Act revenue received in FY 2022/23.
49 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET GUIDE
The following information is presented to help the reader understand the way the City allocates budgets and accounts for the operations of the City. Explanations are presented in two categories: Budget Book Details and Fund Accounting.
UNDERSTANDING THE OPERATING BUDGET
Budget Definition
The budget of the City is a detailed operating plan that identifies estimated costs and program benefits in relation to estimated revenues. The budget is prepared in accordance with Generally Accepted Accounting Principles (GAAP), except encumbrances which are recognized as expenditures when legal contracts or commitments are entered into. The budget for governmental funds has been prepared on a modified accrual basis, recognizing revenue when they are measurable and available to be used to finance expenditures in the fiscal year.
Expenditures are recognized when they occur, regardless of when cash is received or disbursed. The budgets for proprietary funds are prepared on a full accrual basis, recognizing revenue and expenditure activity for the fiscal year for which the activity occurred. The budgetary accounting basis and the consolidated annual financial reports include the reconciliation between GAAP modified and/or full accrual accounting for the financial reports and the budgetary basis budget. All of the year-end financial reports are kept on the basis of modified or full accrual accounting. The budget includes the adopted services to be provided during the fiscal year and the associated appropriations to cover the costs of the adopted programs, projects, services, and activities. These are funded by the estimated revenue and/or fund balance available to finance the adopted service levels.
Budget Process
The budget process is the mechanism through which poli cy decisions are made, implemented, and controlled.
The City Charter requires that the City establish a budgetary system for general operations and prohibits expending funds for which there is no legal appropriation. The City is required to adopt an annual operating budget on or before June 30 for the ensuing fiscal year that begins July 1.
The procedures to establish the budget are as follows:
1. In October and November, departments review their annual budget to determine what their base budget needs to be for the following year, in order to keep the City Council-approved level of service currently provided. Once these adjustments are identified, base budget requests are submitted to the Finance Department for review.
2. After receiving all base budget requests and corresponding back-up documentation to support the requests, the Finance Department meets with the Ci ty Manager’s Office to review all department requests. Once these meetings take place, the base budget is established for each department.
3. The City Manager’s Office, along with the Finance Department, coordinate a citywide presentation to kick off the budget process to provide a brief overview to departments of what is expected in their submissions as well as a timeline of due dates for service level change requests.
Budget Guide
50 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET GUIDE Budget Process
4. In February/March, there is typically a City Council operating and strategic priority setting retreat. Any recommendations that come forward during this retreat are incorporated into service level change requests. During this retreat, the Ten-Year General Fund Financial Forecast is also presented to City Council.
5. Departments submit to the Finance Department all service level change requests for the operating budget, as well as any critical needs for adjustment s in their Capital Improvement Program budget. The Finance Department reviews all submissions, working with departments to resolve any questions or outstanding issues.
6. Budget meetings are held between the City Manager’s Office and the Finance Department to review all service level change requests in both the operating and capital improvement program budgets. After these meetings have taken place, decisions are finalized based on the items presented, balancing each fund’s budget and incorporating City Council priorities.
7. The City Manager submits to the City Council a proposed operating budget for the two following fiscal years, as well as any capital adjustments for the following fiscal year, commencing July 1. Submission to City Council is at least thirty-five (35) days prior to the beginning of each fiscal year.
8. Public hearings are conducted to obtain City Counc ilmembers’ and residents’ comments. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten days prior to these hearings.
9. The budget is legally enacted through passage of a minute order.
From the effective date of the budget, the amounts stated therein as expenditures/expenses, become appropriations to the applicable funds. In order to amend the budget during the year, departments must submit a Report to Council, explaining the need for the change and budget implications. Upon review and approval of the City Council, the budget may be amended. For the Operating Budget, the legal level of budgetary control is at the fund and department level. For funds that do not have an associated department, the legal level of budgetary control is at the fund level.
In addition to the biennial appropriated operating budget, every other year a Capital Improvement Program (CIP) Budget is adopted and a five-year capital needs plan is updated and accepted by the City Council for the City's anticipated capital projects to be funded over the next five years. For the CIP Budget, the legal level of budgetary control is at the project level.
51 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET GUIDE Budget Book Details
The Operating Budget includes a City Manager’s Transmittal Letter that provides an overview of the organization, the short- and long-term issues facing the City, City Council priorities and the changes to the budget as they align to strategic initiatives.
The City Profile and Organization Chart section provides basic facts about the City, a detailed roster of elected officials including Boards and Commissions, the City’s executive team, comparison of key revenue and expenditure data to other local cities and the City organization chart.
The Budget and Fiscal Policies section provides detailed policy framework driving the development of the budget, including a glossary and acronym index.
The Budget Summary details the total City budget across all funds, with adjusting entries reconciling to a total net City budget.
The Summary of Budgeted Positions by Department details the City’s budge ted positions and reconciles
changes throughout the year.
The Statement of Sources and Uses of Funds section details revenues, expenditures and fund balance position including prior year actual activity, current year budget and estimated revenue and expenditures, and two-adopted budget years. This section is organized by accounting fund type detailed later in this section.
The Debt Service section details the City’s debt policies, current long-term debt obligations, legal debt margin, and the ten-year debt service schedule for all outstanding debt issuances.
The Ten-Year Financial Forecast section includes overviews of the General Fund and selected other funds forecasts. These overviews include revenue and expenditure assumptions.
Department sections detail each department mission and objectives broken into divisions and programs. A summary of accomplishments from the past year, objectives for the next two years and budget highlights are included. A table summarizing Dollars by Division and Program, Dollars by Fund, and Dollars by Category provide multiple views of the budgeted dollars. Position budgets are developed initially in the fall of the preceding year with an interface of salary and benefits data with the Human Resources/Payroll system. These positions are reviewed and amended based on Council-approved service levels with allocations reflected by fund, division, and program. A summary of positions by division and program, by fund, and by job classification are included in each department. Budget reconciliations are included in each department section. This section summarizes changes from the prior Adopted Budget, including one-time and ongoing changes to the Base Budget and Service Level Changes. After the budget reconciliation are the service level change items. This portion of the department section includes a description of the action, the dollar amount in each adopted year and any associated position change. Each service level change discusses the performance impact and notes the alignment to the City Council priorities represented in a strategic pillar.
Categories of Expenditures
Salaries – Includes regular salari es, overtime pay, vaca tion pay, holiday, separation payouts, and
premium pays such as out-of-class pay, night differential pay, hazard pay, evidence tech pay, and paramedic pay. These costs are primarily driven by the number of positions budgeted within the program. 52 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET GUIDE
Benefits – Includes Medicare, social security, health allocation, other post-employment benefits (OPEB), and CalPERS retirement costs. Other benefits such as Voluntary Employee Beneficiary Association (VEBA), dental, life insurance, uniform allowance, meal allowance, employee assistance program, auto allowance, mobile phone allowance, and professional development are included, if applicable.
Materials/Services/Supplies – Includes all expenditure items that the department has direct control over such as contract costs, supplies, equipment purchases, and utility charges. For the second year of the Biennial Operating Budget, a 2% increase to costs has been applied to most line items.
Resource and Production – Consists mainly of costs related to the purchasing or generating of electricity, water, or recycled water as well as disposing of solid waste matter and sewage effluent for the respective City utilities.
Services from Other Funds – Cost Allocation Plan – Includes central services costs (e.g., Human Resources, Finance, City Manager’s Office, City Attorney’s Office) that are allocated to funds as calculated in the Cost Allocation Plan. The Cost Allocation Plan costs, which are typically termed "citywide overhead", are allocated to departments and funds receiving the support based on an allocation factor, such as employee count or budgeted expenditures. The Cost Allocation Plan is typically updated by a third-party consultant every two or three years and include modest increases between updates.
Interfund Services – Includes allocated charges for services provided by various departments or central costs as budgeted in the City’s internal service funds. Citywide liability claims costs, vehicle maintenance and replacement, unemployment insurance, workers’ compensation costs, communications equipment, and information technology costs are reflected in internal service funds and the costs are apportioned to departments or funds in the City based on an appropriate allocation factor for each internal service fund.
Capital Outlay – Includes small capital expense purchases not budgeted within the Capital Improvement Projects budget. Most individual capital purchases with a cost of less than $5,000 are expensed in this category.
Transfers to Other Funds – Includes all money moving to other funds. Transfers can be between the operating and capital improvement program budget to provide funding for capital projects or between different operating funds. Transfers to other funds are included in the department budget sections.
Debt Service – Funding provided to pay for the City’s Debt Service obligations. These costs have been excluded from department budgets and detailed in a separate Debt Service section in the document .
53 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET GUIDE Strategic Pillars
The following are the strategic pillars established by the City Council to provide a framework for this budget document. In each department section, service level changes and performance and workload measures aligned to one of the Council-approved pillars below:
Enhance Community Engagement and Transparency
Deliver and Enhance High Quality Efficient Services and Infrastructure
Manage Strategically Our Workforce Capacity and Resources
Promote and Enhance Economic, Housing and Transportation Development
Promote Sustainability and Environmental Protection
Enhance Community Sports and Recreational and Arts Assets
Ensure Compliance with Measure J and Manage Levi’s Stadium
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FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET GUIDE Performance and Workload Measures
In program budgeting, Performance and Workload Measures are used to measure the performance of the department. These measures align budget dollars allocated to provide services with City Council priorities through Strategic Pillars in an effort to drive budgetary decision making. These measures provide insight into how efficiently or effectively the City is providing services in each major program. They are the measures through which the value of services can be assessed by Council and the public. Workload measures provide insight into the volume of effort that is required to provide each service. Performance and Workload Measures tend to remain the same year after year to provide longitudinal data which allows trends to be evaluated. There are, however, some programs which do not have performance measures. These are in areas where quantifiable results are either not appropriate or where it would be too costly to gather the information. Additionally, there are programs where there are no results/budget for particular years, as noted by "N/A". This typically indicates that the measure was: (1) new for the budget year, (2) the program is closed/closing for the budget year, or (3) the measure moved to another program due to a department reorganization of stru cture. All measures are tied to a strategic pillar, displayed by the icons in the Performance and Workload Measures tables. Performance and Workload Measures proposed for addition or deletion are noted on each measure.
55 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET GUIDE Fund Accounting
The accounts of the City are organized and operated on the basis of funds, each of which is considered a separate accounting entity. Government resources are allocated to and accounted for in individual funds based upon the purposes for which the resources are to be spent. A general description of each follows:
Governmental Fund Types
Governmental funds are those through which most governmental functions of the City are financed. The following are the City's Governmental Fund Types:
General Fund - Used to account for the general operations of the City.
Special Revenue Funds - Used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specific purposes. Examples of Special Revenue Funds include the Downtown Parking Maintenance District Fund and the Housing Authority Fund.
Debt Service Funds - Used to account for the accumulation of financial resources to be used for the payment of principal and interest on General Government Operating and Capital long-term obligations, which are not accounted for in proprietary funds.
Capital Improvement Program Funds - Used to account for financial resources to be used for the acquisition or construction of General Government m ajor capital facilities. Capital projects funds are organized by the following fund groups: Enterprise, Streets and Highways, General Government, and Authority funds. Further information on these fund groups and the capital improvements they support can be found in the adopted Capital Improvement Program Budget book.
56 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET GUIDE Proprietary Fund Types
Proprietary funds are used to account for the City's ongoing organizations and activities which are similar to those often found in the private sector. Proprietary Fund Types include Enterprise Funds and Internal Service Funds and are described as follows:
Enterprise Funds - Used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs and expenses, including depreciation, of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses in curred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Examples of Enterprise Funds include the Electric Utility Fund and the Water Utility Fund.
Internal Service Funds - Used to account for the financing of goods, services or facilities provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost-reimbursement basis. Services provided include vehicle replacement, vehicle maintenance and operations, information technology, communications equipment, public works capital projects management, special liability insurance claims, workers' compensation insurance and claims, and unemployment insurance. Examples of Internal Service Funds include the Special Liability Fund and Workers' Compensation Fund.
Fiduciary Fund Types
The City has three types of Fiduciary Funds: Agency Funds (e.g., Employee Benefit and Liability Clearing, Deposits), the Other Post Employment Benefit (OPEB) Plan Trust Fund; and the Private Purpose Trust Funds (e.g., Successor Agency). These funds are excluded from the budget because the City cannot use these resources to finance its own operations.
While each department section provides for a budget br eakdown by fund, this budget document also includes statements of sources and uses for all of the City’s funds, categorized by the type of fund as described above.
Each of these financial statements includes the 2021/22 Actuals, 2022/23 Amended Budget, 2022/23 Estimate, and the 2023/24 and 2024/25 Proposed Budget. The 2022/23 Amended Budget is the adopted budget in addition to any budget amendments that were approved by City Council throughout the fiscal year, while the Estimate column shows what the expected revenue and expenditures will be for 2022/23. The Proposed Budget columns take into account the base budget plus all service level changes included in this document.
57 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET CALENDAR
BUDGET CALENDAR
October -
November
December -
January February March - April April - May May - June June Departments
Submit Base
Requests
Departments
Submit
Operating
Budget
Proposals
Departments
Submit Capital
Improvement
Program (CIP)
Budget
Proposals and
Municipal Fee
Schedule
Changes
City Manager's
Office and
Finance
Department
Review of
Operating
Proposals
Public Hearing
and Adoption of
FY 2023/24
Municipal Fee
Schedule
Study Session
on FY 2023/24
and FY
2024/25
Proposed
Operating
Budget and FY
2023/24 CIP
Changes
Public Hearing
and Adoption of
FY 2023/24
and FY
2024/25
Proposed
Operating
Budget and FY
2023/24 CIP
Changes
Finance
Department
Review of Base
Budget
Finance
Department
Review of
Operating
Budget
Proposals
City Manager's
Office and
Finance
Department
Review of CIP
Budget
Proposals and
Municipal Fee
Schedule
Changes
Finalize
Operating and
CIP Proposals
and Proposed
Budget
Finalize FY
2023/24
Municipal Fee
Schedule
58 ! ! !
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET PRINCIPLES DRAFT BUDGET PRINCIPL ES FOR FY 2023/24
1. Make decisions within the context of the City’s Code of Ethics and Values, especially being Fiscally Responsible, Communicative, and Service-Oriented.
2. Consider budget decisions with long-term implications taking into account data from the Ten-Year Financial Forecast.
3. To the extent possible, align ongoing expenditures with ongoing revenues to avoid negative impacts on future budgets and maintain the City's high financial management standards.
4. When addressing General Fund shortfalls, use a combination of ongoing and one-time solutions to balance the competing goals of aligning ongoing revenues and expenditures and minimizing the service delivery impacts to the community.
5. Continue cost control measures until t he ongoing General Fund revenues and expenditures are in alignment.
6. Approve an exception to the Council Policy that dictates setting the General Fund Budget Stabilization Reserve at or above 25% of adopted budget expenditures; set the Reserve level at a minimum of 15% of expenditures.
7. Focus on projects and services that benefit the community as a whole.
8. Pursue economic development objectives and strategies to foster new public and private investment within Santa Clara, and to create employment opportunities.
9. Balance between compensation adjustments to retain and attract employees and funding for positions.
10. Use one-time unrestricted revenues (e.g., annual General Fund surplus) for one-time uses such as increasing reserves, funding capital or Information Technology projects, paying off debt, and/or paying off unfunded pension or other post-employment benefits liabilities.
11. Inform and communicate clearly and broadly to re sidents, businesses and employees regarding the City’s fiscal position and budget; schedule hearings to promote active participation in the City Council’s budget deliberations.
12. With limited exceptions, establish fees based on full cost recovery where individuals/businesses rather than the community at-large are benefitting from City services. This preserves limited unrestricted resources for providing services that benefit the community as a whole.
13. Focus on business process redesign in order to improve employee productivity and the quality, flexibility, and cost-effectiveness of servic e delivery (e.g., streamlining, simplifying, reorganizing functions, and reallocating resources).
14. Explore expanding existing revenue sources and/or adding new revenue sources.
15. Engage employees to contribute new and innovative ideas during the department budget development process.
16. Use the General Plan as a primary long-term fiscal planning tool and link ability to provide City services to development policy decisions.
59 FY 202 3/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | GLOSSARY
GLOSSARY
The following explanations of glossary and terms are presented to aid in understanding the information included in this document:
Abatement - A complete or partial cancellation of a levy imposed by a government and usually applied to tax levies, special assessments and service charges.
Accounting System - The total structure of records and procedures which discover, record, classify, summarize and report information on the results of operations and the financial position of a government or any of its funds, fund types, balanced account groups, or organizational components.
Accrual Basis of Accounting - A method of accounting that recognizes the financial effect of transactions, events, and interfund activities when they occur, regardless of the timing of related cash flows.
Adopted Budget - The annual City budget as approved by City Council on or before June 30 for the fiscal year beginning July 1. This adopted budget establishes the legal authority for the expenditure of funds. This formal action by the City Council sets the spending path for the year.
Agency Fund – To account for assets held by the City as an agent for individuals, private organizations, other governments, and/or other funds.
Allocation - To divide or share out financial resources or expenditures for a specific purpose to particular funds or departments.
American Recovery and Reinvestment Act (ARRA) - An act established by the federal government in February 2009 whose intent is to create and save jobs, spur economic activity and focus on long term growth through the funding of various projects and initiatives.
Annual Comprehensive Financial Report (ACFR) - The official annual report of the City’s financial condition at the conclusion of the fiscal year, June 30. The report is prepared to conform to Generally Accepted Accounting Principles (GAAP) for governmental units and provides a quantitative look at the operating success, financial health, and compliance of the City’s reporting units.
Appropriation - A legal authorization granted by the City Council to make expenditures and to incur obligations for specific purposes. For purposes of the Capital Improvement Program (CIP) budget, appropriations are automatically renewed, for the life of the project, unless altered or revoked. For the operating budget, appropriations lapse at the end of the fiscal year to the extent they have not been expended or encumbered.
Appropriations Limit - The California State Constitution limits a city’s appropriations growth rate to two factors:
changes in population, and either the change in California per capita income or the change in the local assessment roll due to non-residential new construction.
Assessed Valuation - A valuation set upon real estate or other property by a government as a basis for levying taxes. In California, the assessed valuation subject to ad valorem tax levy is governed by Proposition 13 and AB8 (1978).
60 FY 202 3/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | GLOSSARY Assets - A probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events. This includes financial resources such as cash, receivables, inventory and plant and equipment, net of depreciation.
Audit - A formal examination of the City’s accounts by an independent audit firm to determine whether the City’s financial statements fairly present the City’s financial position and results of operations in conformity with Generally Accepted Accounting Principles.
Authorized Positions - Regular positions authorized in the budget to be employed during the fiscal year.
Balanced Budget - The budget for a fund is balanced when total budgeted resources, including revenues, transfers in from other funds, and available fund balance from the previous year, meets or exceeds total budgeted uses of resources, including expenses and transfers out to other funds.
Base Budget - The ongoing expense level necessary to maintain service levels previously approved by the City Council.
Basis of Accounting - The timing of recognition, that is, when the effects of transactions or events are recognized for financial reporting or budgeting purposes. The three bases of accounting for governmental agencies are: (1) cash basis (when cash is received or paid), (2) accrual basis (when the underlying transaction or event takes place), and (3) modified accrual basis (revenues are recognized in the accounting period in which they become available and measurable and expenditures are recognized in the accounting period in which the fund liability occurred).
Beginning Fund Balance - The amount of prior year's unappropriated funds used to finance appropriated expenses in the current budget year.
Biennial Budget - A consolidated budget document presented on a biennial basis that includes the City’s Operating Budget and CIP Budget. The Operating and Capital Budgets are presented in alternating years to the City Council for approval.
Bond - A city may raise capital by issuing a written promise to pay a specified sum of money, called the face value or principal amount, at a specified date or dates in the future, together with periodic interest at a specific rate.
Bond Rating - An evaluation of a bond issuer’s credit quality and perceived ability to pay the principal and interest on time and in full. Three agencies regularly review city bonds and generate bond ratings: Moody’s Investors Service, Standard and Poor’s and Fitch Ratings.
Budget - A plan of financial operation embodying an estimate of proposed expenditures for a given period and the estimated financial resources available to finance them. Used without any modifier, the term usually indicates a financial plan for a single fiscal year.
Budget Public Hearing - A public meeting at which any member of the community may appear and be heard regarding any item in the proposed budget as presented by the City Manager to the City Council.
61 FY 202 3/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | GLOSSARY Budget Transmittal Letter - A general discussion of the budget as presented in writing by the City Manager to the City Council. The message contains an explanation of principal budget items and summaries found in the budget.
Budgetary Control - The control or management of a government or enterprise in accordance with an approved budget for the purpose of keeping expenses within the limitations of authorized appropriations.
Capital Asset - Land, buildings, equipment, improvements to buildings, and infrastructure (i.e., roads, bridges and other immovable assets). The City’s policy is to capitalize equipment with a cost exceeding $5,000 and building, improvements and infrastructure with costs exceeding $20,000. A capital asset is defined as an asset with a useful life extending beyond a single accounting period.
Capital Improvement - A permanent addition to the City's assets, including the design, construction or purchase of land, buildings, or facilities, or major renovations of same.
Capital Improvement Program (CIP) Budget - A plan of annual appropriation for capital improvements and various kinds of major facility maintenance. These projects are often multi-year in length, which requires funding beyond the two-year period in the biennial budget.
Capital Outlay - A budget category which includes all equipment having a unit cost of $1,000 or more, and an estimated useful life of over one year or capital improvements costing less than a certain dollar amount. Capital Outlay is budgeted in the operating budget in the Other Operating Expenditure Category.
Certificates of Participation (COPs) - This financing technique provides long-term financing through a lease, installment sale agreement or loan agreement. Certificates of Participation (COPs) allow the public to purchase participation in a stream of lease payments, installment payments or loan payments relating to the acquisition or construction of specific equipment, land or facilities. The lending agreement is secured by a lease on the acquired asset or other assets of the City.
Charges for Services - Fees and charges levied by City departments for services rendered (example: utility charges to customers, recreation program fees, engineering fees, etc.).
Community Development Block Grant (CDBG) - Provides eligible metropolitan cities and urban counties with annual direct grants to revitalize neighborhoods; expand affordable housing and economic opportunities; and/or improve community facilities and services, principally to benefit low- and moderate-income persons.
Community Facilities District (CFD) - A special district that can issue debt for the planning, design, acquisition, construction, and/or operation of public facilities, as well as provide public services. Special tax assessments levied by the district are used to repay the debt. A CFD can be formed only if approved by the majority of affected property owners.
Consumer Price Index (CPI) - A statistical measure of a weighted average of prices of a specified set of goods and services purchased by wage earners in urban areas.
Contingency - A budgetary reserve set aside for emergency or unanticipated expenditures, revenue shortfalls, and/or unknown expenditures.
62 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | GLOSSARY Debt - Obligations of the City to repay, with or without interest, in installments and/or at a later date, some amount of money utilized resulting from the borrowing of money or from the purchase of goods and services. Debts of governments include bonds, notes and COPs.
Debt Financing - Issuance of bonds and other debt instruments to finance municipal improvements and services.
Debt Service - Payment of the principal and interest on an obligation resulting from the issuance of bonds, COPs or other debt instruments.
Deficit - An excess of expenditures or expenses over revenue (resources).
Department - An organizational unit comprised of divisions and/or programs. It is the basic unit of service responsibility encompassing a broad mandate of related activities. Department directors generally report directly to the City Manager's Office, for instance, Fire and Finance.
Depreciation - An allocation of the cost of fixed assets (buildings, plant or equipment) over the estimated useful life of the asset.
Designation - A portion of fund equity set aside by Council Action for a specific purpose.
Dissolution Act - Also known as Redevelopment Dissolution Act; on December 29, 2011 the California Supreme Court found the Dissolution Act (ABx1 26) constitu tional in the California Redevelopment Association vs.
Matosantos case. The Act continued the suspension and prohibition of most redevelopment activities in effect since late June 2011; dissolved RDAs as of February 1, 2012; created successor agencies and oversight boards; and established roles for the County-Auditor Controller, the Department of Finance and State Controller’s Office in the dissolution process and satisfaction of enforceable obligations of former RDAs.
Division - An organizational unit within a City department. For instance, Fire Field Operations, Fire Community Risk Reduction, and Fire Training.
Encumbrance - Obligations in the form of purchase orders, contracts or salary commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when paid.
Enterprise Fund - Used to account for operations: a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs and expenses, including depreciation or capital replacement, of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or b) where the governing body has decided that periodic determination of revenues earned, expenses incu rred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.
Environmental Impact Report (EIR) - An assessment of the likely influence a project might have on the environment.
Equity - The net assets of a fund (i.e. the assets less the liabilities on a fund balance sheet).
63 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | GLOSSARY Expenditure - Actual cash disbursements for the cost of goods delivered or services rendered to the City in a Governmental Fund.
Expenditure Object Category (Expenditure Category) - Expenditure categories are a group of similar expenditure objects.
Expense - The cost incurred from providing goods or services related to the City’s operations in Proprietary Funds.
Fee - The payment for direct receipt of a public service by the party who benefits from the service.
Fiscal Year - The time period designated by the City signifying the beginning and ending period for recording financial transactions. Consistent with all cities and counties in the State of California, the City of Santa Clara has specified July 1 to June 30 as its fiscal year.
Franchise - A special privilege granted by a government, permitting the continued use of public property, such as city streets and usually involving the elements of a monopoly or regulation, for example cable TV, gas, refuse, and others.
Full-Time Equivalent - Refers to one full-time equivalent position, which equals 40 hours per week, 52 weeks per year.
Fund - An independent fiscal and accounting entity with a self-balancing set of accounts recording its assets, liabilities, fund equity, revenues and expenditures or expenses and other changes in residual fund equity or balances, segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, limitations or public policy.
Fund Balance - The amount of financial resources immediately available for use. Generally, this represents the difference between unrestricted current assets over current liabilities.
Fund Type - A category into which funds with similar characteristics are grouped. The fund types used in the City budget are General, Special Revenue, Capital Projects, Enterprise, Internal Service and Debt Service funds.
Gas Tax – State tax received from gasoline sales utilized solely for street related purposes, such as new construction, rehabilitation or maintenance.
General Fund - The primary fund of the City used to account for all revenues and expenditures of the City not accounted for in another fund. Examples of departmental operations accounted for in the General Fund include the City Council, Police and Fire Departments, Library, Parks and Recreation, and others.
Generally Accepted Accounting Principles (GAAP) - Uniform minimum standards and guidelines for financial accounting and reporting that govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules and procedures necessary to define accepted accounting practice at a particular time. GAAP provide a standard by which to measure financial presentations. The primary authoritative body on the application of GAAP to State and local governments is t he GASB (Governmental Accounting Standards Board).
64 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | GLOSSARY Governmental Accounting - The composite activity of analyzing, recording, summarizing, reporting, and interpreting the financial transactions of governments.
Governmental Accounting Standards Board (GASB) - The authoritative accounting and financial reporting standard-setting body for government entities.
Governmental Fund - A fund type to account for tax-supported activities. There are four different types of governmental funds: the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds.
Grant - Contributions of cash or other assets from another government entity to be used or expended for a specific purpose, activity or facility. An example is the Community Development Block Grant given by the federal government.
HOME Program – Federal housing assistance program that provides funds to low- and very low- income families for both rental units and privately-owned dwellings.
Housing and Urban Development (HUD) - The Federal agency whose mission is to increase home ownership, support community development and increase access to affordable housing free from discrimination.
Housing Authority - The City of Santa Clara Housing Authority was established by Resolution 11-7827 on February 22, 2011 to ensure the provision of safe and sanitary housing for persons of low income.
Indirect Cost Allocation Plan - The City uses an indirect cost allocation plan to ensure that enterprises and certain special revenue supported operations pay for them selves and are not subsidized by City taxpayers.
General Fund supported central services costs such as payroll, accounting, data processing, personnel, city management and facilities maintenance are allocated to those funds benefiting from these services based on statistical data reflecting use of these support services.
Infrastructure - Facilities on which the continuance and growth of a community depend on such as roads, water lines, sewers, public buildings, parks and airports.
Interest and Rent - Interest income on investments and rental income received on property owned by the City.
Interfund Services - Services provided by one fund within the City for the benefit of another fund for which the benefitting fund is charged a fee (e.g., payroll services for the Electric Utility Department).
Interfund Transfers - With Council approval, resources may be transferred from one City fund to another. The purpose of the majority of transfers is to reimburse a fund that has made expenditures on behalf of another fund.
Less often, a transfer may be made to open or close a fund.
Intergovernmental - Revenue received from other government entities (e.g., grants) .
Internal Service Fund s - These funds account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.
65 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | GLOSSARY Legal Debt Limit - Per section 6.07 of the City Charter, bonded indebtedness of the City may not exceed 10% of the total assessed valuation of property within the City, exclusive of any indebtedness incurred for the purpose of water supply, sewers or storm drains.
Levi’s Stadium - The stadium is located at 4900 Marie P. DeBartolo Way, Santa Clara and is the home of the San Francisco 49ers professional football team. It has a permanent seating capacity of approximately 68,500 seats with expansion to approximately 75,000 seats for larger events, such as an NFL Super Bowl. The stadium was built based on the City of Santa Clara approved Meas ure J, the Santa Clara Stadium Taxpayer Protection and Economic Progress Act, on June 8, 2010.
Levy - An amount of taxes, special assessments or service charges imposed by a government for the support of government activities.
Liability - Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. That is, a financial obligation or claim of financial resources of a specific fund to be liquidated at a future date.
Long-term Debt - Debt with a maturity of more than one year after the date of issue.
Mission - The overriding purpose of the department, division, or program.
Modified Accrual Basis of Accounting - Revenues are recognized in the accounting period in which they become available and measurable; expenditures are recognized in the accounting period in which the fund liability is incurred (if measurable), except for unmatured interest on general long-term debt and certain similar accrued obligations, which should be recognized when due.
Municipal Code - A compilation of City Council approved ordinances currently in effect. The Code defines City policy in various categories, for example, Civil Service rules, traffic regulations, sanitation and health standards, building regulations and planning and zoning regulations.
Object Category - See Expenditure Object Category.
Operating Budget - The portion of the budget that pertains to the City's daily operations and activities engaged in to provide services to the community. The operating budget contains appropriations for such expenditures as personnel (salaries, wages and benefits), supplies and materials, utilities, travel and fuel.
Ordinance - A formal legislative enactment by City Council. It has the full force and effect of law within City boundaries unless pre-empted by a higher form of law (State or federal). An ordinance has a higher legal standing than a resolution. Revenue raising measures, such as the imposition of taxes, special assessments and service charges are some examples of actions that would require the enactment of an ordinance.
Other Financing Sources - Changes in residual fund equity or balances not arising from revenues or expenditures/expenses.
Includes governmental fund general long-term debt proceeds, amounts equal to the present value of minimum lease payments arising from capital leases, proceeds from the sale of general fixed assets and operating transfers in.
66 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | GLOSSARY Performance Measures - This is a non-financial measurement of activity such as number of meters read, number of bills sent, number of customer service calls handled and response time to emergency calls.
Performance-based budgeting incorporates performance measures into the budget process.
Program - A program is a specific service or activity that falls under departmental divisions. Programs provide for a lower level of detail regarding a Department’s function. For instance, the Traffic Program under the Police Field Operations Division.
Property Tax - An ad valorem (based on value) tax on real property and tangible personal property levied by the local government on the property located within the City’s jurisdiction. Property tax is determined by two factors: the assessed value of the property and the tax rate for the area in which the property is located.
Public Facilities Financing Corporation (PFFC) - The City of Santa Clara Public Facilities Financing Corporation (PFFC) was formed in 1997 for the purpose of issuing Certificates of Participation (COPs) to provide financing for the construction of major City facilities. Members of the City Council are also members of the PFFC Board. Debt service on the COPs is secured by leas e payments made by the City's General Fund to the PFFC for the use of the constructed facilities for public purposes. In accordance with lease agreements, the PFFC assigns lease payments received from the City to the trustee for payment to the certificate holders.
Redevelopment Dissolution Act - See Dissolution Act.
Reimbursement - Repayments of amounts remitted on behalf of another party, or interfund transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it but properly applied to another fund.
Reserve - An account used to earmark a portion of fund balance to indicate that it is not available for expenditure or legally segregated for a specific future use.
Resolution - A special or temporary legislative order of the City Council/Agency/Authority. If it is not in conflict with any higher form of law, such as a state statute or constitutional provision, it has the full force and effect of law within the boundaries of the City. A resolution requires less legal formality and has a lower legal status than an ordinance.
Revenue - Resources received by the government available for use in supporting services including such items as taxes, fees, permits, licenses, grants and interest.
Risk Management - An organized attempt to protect a government's assets against accidental loss in the most economical method. The City is exposed to various risks of losses related to torts, errors and omissions, general liability, injuries to employees and unemployment claims. Claims, expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated using actuarial methods or other estimating techniques. These losses include an estimate of claims that have been incurred but not reported.
Sales Tax - A tax imposed by the government on retailers at the point of sale for the privilege of selling tangible personal property. It is usually calculated as a percentage of the selling price and collected by the retailer from the consumer. The rate in the City of Santa Clara is 9.125%.
67 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | GLOSSARY Silicon Valley Power (SVP) - The City’s Electric Utility Department provides electricity to City residents and businesses under the name Silicon Valley Power.
Special Assessment – A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties.
Special Revenue Fund – A fund in which revenue collected is restricted by the City, State or federal government as to how the city might spend its resources.
Sports and Open Space Authority (SOSA) – The City of Santa Clara Sports and Open Space Authority (SOSA) was created by the City Council in 1974 for the acquisition and development of open space within the City. The members of the City Council are also members of SOSA' s Board of Directors and, as such, are authorized to transact business and exercise power to purchase, lease or otherwise obtain and dispose of real and personal property, to acquire, construct, maintain, repair, manage and operate real and personal property, including leasing to private operators for commercial purposes, surplus space which is not economical to use for open space planning.
Stadium Authority – The Stadium Authority was established by the City Council in 2011 to provide for the development and operation of Levi’s Stadium. The Stadium Authority’s governing board is the seven members of the City Council. The Stadium Authority will own, develop, construct, operate and maintain the Stadium, and have all powers granted to it by the City. The Stadium Aut hority is a separate and distinct legal entity, and the City is not liable for the debts or obligations of the Stadium Authority.
Strategic Pillar – The City Council adopted seven focus areas for City operations: 1. Promote and Enhance Economic, Housing and Transportation Development; 2. D eliver and Enhance High Quality Efficient Services and Infrastructure; 3. Enhance Community Sports, Recreational and Arts Assets; 4. Enhance Community Engagement and Transparency; 5. Ensure Compliance with Measure J and Manage Levi's Stadium; 6. Manage Strategically our Workforce Capacity and Resource s; and 7. Promote Sustainability and Environmental Protection.
Subsidy – A grant by a government entity to another government entity to pay all or a portion of an activity of the government deemed advantageous to the public.
Successor Agency to the Former Redevelopment Agency of the City of Santa Clara – Pursuant to State legislation ABx1 26, the “Dissolution Act,” the Redevelopment Agency (RDA) of the City of Santa Clara was dissolved effective February 1, 2012. The City has elected to become the Successor Agency for the RDA non- housing functions, responsible for paying off the former Redevelopment Agency’s existing debts, disposing of the former Redevelopment Agency’s properties and assets to help pay off debts, returning revenues to the local government entities that receive property taxes, and winding down the affairs of the former Redevelopment Agency. The City has also elected to retain the former Redevelopment Agency's housing functions, including retaining all of the housing assets, rights, power, duties, obligations and functions previously performed by the Redevelopment Agency in administering its Low and Moderate Income Housing Fund.
Surplus – An excess of revenue (resources) over expenditures or expenses.
68 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | GLOSSARY Taxes – Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. The term does not include specific charges made against particular persons or property for permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those paying such charges as, for example, water service charges.
Ten-Year Financial Plan – A strategic planning document showing the estimated results of operations and capital improvement project requirements over the next ten years. This plan is reviewed and accepted by Council and no appropriations result from that acceptance.
Theme – The capital budget is aligned to twelve categorie s (Administrative Facilities, Community Facilities, Convention Center, Electric Utility, Other Community Projects, Parks and Trails, Sewer Utility, Solid Waste, Storm Drain, Technology and Equipment, Transportation, and Water and Recycled Water Utilities).
Tourism Improvement District (TID) – The Santa Clara Tourism Improvement District was established in 2004 as a marketing revenue supplement to assist the Santa Clara Convention and Visitors Bureau (CVB) with marketing the City of Santa Clara to hotel and convention center groups and visitors. The activities to be provided to the district will be funded by the levy of assessments.
Transient Occupancy Tax (TOT) – A locally controlled tax imposed on travelers who stay in temporary lodging facilities for stays thirty days or less. The rate in the City of Santa Clara is currently 11.5%.
Trust Fund – Used to account for assets held by the City in a trustee capacity.
User Charges – The payment of a fee for direct receipt of a public service by the party benefiting from the service.
69 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | ACRONYMS
ACRONYMS
AB Assembly Bill
ACFR Annual Comprehensive Financial Report
ADA American with Disabilities Act
AIPG All Inclusive Playground Grant
AMH Automatic Handling System
ARPA American Rescue Plan Act
ARRA American Recovery and Reinvestment Act
ASAI Average System Availability Index
BAREC Bay Area Research Extension Center
BLS Basic Life Support
BMP Below Market Price
BNPEA Bayshore North Project Enhancement Authority
BSR Budget Stabilization Reserve
CAHF City Affordable Housing Fund
CalOES State of California Office of Emergency Services CalPERS California Public Employees’ Retirement System
CCTV Closed-Circuit Television
CDBG Community Development Block Grant
CEQA California Environmental Quality Act
CFD Community Facilities District
CIP Capital Improvement Program
CLT Contribution In-Lieu of Tax
CMMS Computerized Maintenance Management System
CNG Compressed Natural Gas
COLA Cost of Living Adjustment
COP Certificates of Participation
COPS Citizens’ Option for Public Safety
CPI Consumer Price Index
CPR/AED Cardiopulmonary Resuscitation/Automated External Defibrillator CPRS California Parks and Recreation Society
CRC Community Recreation Center
70 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | ACRONYMS CSMFO California Society of Municipal Finance Officers
CVB Convention-Visitors Bureau
DA Development Agreement
DDA Disposition and Development Agreement
DTSC Department of Toxic Substances Control
DVR Donald Von Raesfeld Power Plant
EEO Equal Employment Opportunity
EIR Environmental Impact Report
EMS Emergency Medical Services
EMT Emergency Medical Technician
EOC Emergency Operations Center
EOL End of Life
EOPS Enforceable Obligation Payment Schedule
ERAF Educational Revenue Augmentation Fund
FEMA Federal Emergency Management Agency
FERC Federal Energy Regulatory Commission
FF&E Furniture, Fixtures and Equipment
FHRMS Finance Human Resources Management System
FMIS Finance Management Information System
FOG Fats, Oils, and Grease
FPPC Fair Political Practices Commission
FTE Full Time Equivalent (Employee)
FTHB First Time Homebuyer
FY Fiscal year
GAAP Generally Accepted Accounting Practices
GASB Governmental Accounting Standards Board
GDP Gross Domestic Product
GFGC General Fund General Contingency
GFOA Government Finance Officers Association
GIS Geographical Information Systems
GPS Global Positioning System
GSI Green Stormwater Infrastructure
GWh Giga Watt Hour
71 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | ACRONYMS HA Housing Authority
HIPPA Health Insurance Portability and Accountability Act HMG Hazard Mitigation Grant
HMI Human Mechanical Interface
HOME Home Investment Partnerships Act
HR Human Resources
HUD Housing and Urban Development
HVAC Heating, Ventilation, and Air Conditioning
IBEW International Brotherhood of Electric Workers
ISC/CRC International Swim Center/Community Recreation Center IT Information Technology
JPA Joint Power Agreement
kWh Kilo Watt Hour
LED Light Emitting Diodes
LEED Leadership in Energy and Environmental Design
LF Linear Feet
LLEBG Local Law Enforcement Block Grants Program
LPD Land, Property and Development
m:s minutes: seconds
MCC Motor Control Center
MOU Memorandum of Understanding
MRP Municipal Regional Stormwater National Pollutant Discharge Elimination Permit Muni Municipal
N/A Not Applicable
NCIP Neighborhood Conservation and Improvement Program
NCPA Northern California Power Agency
NEPA National Environmental Policy Act
O&M Operations and Maintenance
OBAG One Bay Area Grant
OSHA Occupational Safety and Health Administration
OTS California Office Traffic Safety
PBC Public Benefits Charge
PCA Property Condition Assessment
72 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | ACRONYMS PEMHCA Public Employees’ Medical and Hospital Care Act (California) PEPRA Public Employees’ Pension Reform Act of 2013
PERS Public Employees’ Retirement System
PG&E Pacific Gas and Electric
PLC Programmable Logic Control
POP Problem Oriented Policing
RDA Redevelopment Agency
RMRA Roadway Repair and Accountability Act
RMRP Retiree Medical Reimbursement Program
ROPS Recognized Obligation Payment Schedule
RWF Regional Wastewater Facility
SA Successor Agency
SAIDI System Average Interruption Duration Index
SB Senate Bill
SCADA Supervisory Council and Data Acquisition
SCAT Specialized Crime Action Team
SCPD NSU Santa Clara Police Department - Nuisance Suppression Unit SCSA Santa Clara Stadium Authority
SDPS Storm Drain Pump Station
SFM State Fire Marshal
SFPUC San Francisco Public Utilities Commission
SOSA Sports and Open Space Authority
SRT Special Response Team
STACT San Tomas Aquino Creek Trail
STEM Science, Technology, Engineering and Math
SVACA Silicon Valley Animal Control Authority
SVP Silicon Valley Power (City owned Electric Utility)
SWRCB State Water Resources Control Board
TBRA Tenant-Based Rental Assistance
TDA Transportation Development Act
TDM Traffic Demand Management
TMP Transportation Management Program
TOT Transient Occupancy Tax
73 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | ACRONYMS TPAC Treatment Plant Advisory Committee
UMIS Utility Management Information System
Uncl Unclassified Employee
VLF Vehicle License Fee
VoIP Voice Over Internet Protocol
WiFi Wireless Fidelity Communication Technology
WPCP Water Pollution Control Plant
74 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | SOURCES
FY 2021/22
Adopted
FY 2022/23
Adopted
FY 2023/24
Proposed
Change
%
FY 2024/25
Proposed
Revenue Sources
1 :
Property Tax 71,639,000 75,341,000 85,880,000 14.0% 89,625,000 Sales Tax 58,183,000 60,173,000 60,524,000 0.6% 62,352,000 Transient Occupancy Tax 9,000,000 12,600,000 21,275,000 68.8% 23,650,000 Franchise Tax 4,630,000 4,780,000 5,150,000 7.7% 5,300,000 Gas Tax 5,200,000 5,900,000 5,900,000 0.0% 5,900,000
Other Taxes 1,826,327 1,867,617 1,983,077 6.2% 2,082,298 Planning Fees 6,400,000 6,775,000 7,969,600 17.6% 8,223,932 Other Fees 33,127,922 73,303,513 47,928,665 (34.6%) 87,664,867 Licenses and Permits 11,637,995 11,832,995 17,421,995 47.2% 17,941,995 Fines and Penalties 1,496,135 1,465,000 1,225,000 (16.4%) 1,230,000 Rents and Leases 6,385,633 7,689,666 8,877,385 15.4% 9,887,604 Electric Utility 519,666,171 591,932,383 654,793,213 10.6% 735,601,973 Electric Special Revenues 31,839,508 33,382,905 37,793,434 13.2% 40,110,067 Water Utility 47,500,000 46,312,500 58,234,600 25.7% 63,772,000 Sewer Utility 42,976,233 40,518,345 42,500,700 4.9% 46,439,300 Water Recycling Utility 5,200,000 5,200,000 7,203,200 38.5% 8,126,000 Solid Waste Services 33,135,000 36,935,092 39,037,957 5.7% 40,500,355 Storm Drain Fees 2,908,000 2,908,000 2,908,000 0.0% 3,107,000 Miscellaneous Charges for Services 5,449,367 6,498,387 6,688,788 2.9% 6,883,485 Grant Revenue 15,069,719 10,356,164 6,376,945 (38.4%) 5,142,048 Housing Related 2,025,391 1,623,337 2,405,250 48.2% 2,415,726 Other Agencies 42,128,685 13,202,147 6,826,150 (48.3%) 7,335,930 Other Revenues 12,781,813 17,920,287 19,893,185 11.0% 22,709,715 State Revenues 162,000 160,000 162,000 1.3% 162,000
Traffic Mitigation 1,531,500 1,000,000 1,000,000 0.0% 1,000,000 Interest Income 10,010,228 9,810,660 14,093,836 43.7% 15,578,159 Reimbursements 5,614,872 6,294,102 7,365,310 17.0% 7,666,842 Developer Contributions 38,861,733 35,428,787 18,977,810 (46.4%) 5,993,422 Sale of Land or Property 100,000 80,000 249,600 212.0% 100,000 Bond Proceeds 18,588,216 0 335,250,000 N/A 0
Interdepartmental Revenue 84,471,722 88,977,303 96,045,382 7.9% 99,916,306 Transfers From 106,559,744 50,091,179 393,330,000 685.2% 65,959,970 Gross Revenue 1,236,105,914 1,260,359,369 2,015,270,082 59.9% 1,492,377,994 Less Transfers In and Interfund
Revenues2
(191,031,466) (139,068,482) (489,375,382) 251.9% (165,876,276) Net Revenue 1,045,074,448 1,121,290,887 1,525,894,700 36.1% 1,326,501,718 Capital Improvement Program
Carryover
143,343,514 169,248,792 0 (100.0%) 0
(Contribution to) / Use of Reserves 28,907,185 41,209,568 (34,949,589) (184.8%) (92,456,650) Total Net Sources
3 1,217,325,147 1,331,749,247 1,490,945,111 12.0% 1,234,045,068
75 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | USES
FY 2021/22
Adopted
FY 2022/23
Adopted
FY 2023/24
Proposed
Change
%
FY 2024/25
Proposed
Expenditures
1 :
Operating Budget:
City Council 829,205 861,105 1,124,281 30.6% 1,176,723
City Attorney's Office 3,097,380 3,202,735 3,076,516 (3.9%) 3,205,702 City Clerk's Office 1,470,231 2,076,112 1,947,261 (6.2%) 2,067,068 City Auditor 1,075,970 1,224,141 948,445 (22.5%) 985,489 City Manager's Office 5,442,069 6,085,321 4,980,204 (18.2%) 5,175,582 Community Development 23,938,049 24,696,861 25,674,923 4.0% 25,309,296 Electric Utility 529,959,140 675,885,991 719,003,859 6.4% 786,454,509 Finance 16,363,472 17,820,990 18,192,257 2.1% 19,012,771 Fire 60,581,403 62,334,871 69,732,009 11.9% 71,103,199
Human Resources 4,133,810 4,508,710 4,208,090 (6.7%) 4,439,328 Information Technology 12,284,229 12,958,301 13,294,932 2.6% 13,156,944 Library 10,764,727 11,889,451 10,835,937 (8.9%) 11,317,625 Parks & Recreation 22,940,877 23,743,141 23,892,478 0.6% 24,831,781 Police 80,454,471 85,444,381 86,688,554 1.5% 91,296,351 Public Works 79,441,436 83,467,913 87,303,204 4.6% 90,925,536 Water and Sewer Utility 95,628,494 86,940,128 96,385,559 10.9% 120,920,630 Non-Departmental
4 61,939,938 40,185,265 50,695,213 26.2% 49,923,207
Other Agency 5,420 5,420 10,000 84.5% 10,200
Internal Services 15,358,000 15,793,000 12,397,000 (21.5%) 12,934,000 Debt Service 39,286,574 19,841,227 374,973,049 1789.9% 40,647,934 Gross Operating Budget 1,064,994,895 1,178,965,064 1,605,363,771 36.2% 1,374,893,875 Less Transfers Out and Interfund
Expenses2
(178,378,596) (203,142,482) (509,709,569) 150.9% (247,780,561) Net Operating Budget 886,616,299 975,822,582 1,095,654,202 12.3% 1,127,113,314 Capital Improvement Program Budget:
Total Capital Improvement Program 333,428,673 353,438,983 392,767,458 11.1% 104,022,838 Public Works Management Services 3,962,714 3,941,683 4,111,656 4.3% 4,362,916 Less Transfers Out (6,682,539) (1,454,000) (1,588,205) 9.2% (1,454,000) Total Capital Improvement Program
Budget3
330,708,848 355,926,666 395,290,909 11.1% 106,931,754
Total Net Uses 1,217,325,147 1,331,749,248 1,490,945,111 12.0% 1,234,045,068 1 Excludes Stadium Authority operating budget
2 Excludes internal services fund operating budget, non-City Convention Center activities, and all transfers 3 Includes Capital Improvement Program Carryover in FY 2022/23 Adopted Budget and FY 2021/22 Adopted Budget 4 Includes Convention Center operating budget
76 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | REVENUE SUMMARY
Fund Type
FY 2021/22
Actual
FY 2022/23
Adopted
FY 2023/24
Proposed
Change
%
FY 2024/25
Proposed
Change
%
General Fund
001 General Fund 242,183,546 242,058,385 274,263,600 13.3% 287,341,981 4.8% Total General Fund 242,183,546 242, 058,385 274,263,600 13.3% 287,341,981 4.8% Special Revenue Funds
102 American Rescue Plan Act Fund 26,231,326 0 0 N/A 0 N/A 463 Bridge Maintenance District #2 Fund 95,052 80,000 80,000 0.0% 80,000 0.0% 155 Building Development Services Fund 40 ,351,364 14,112,000 15,611,000 10.6% 16,164,000 3.5% 220 Building Special Programs and Training
Fund
71,002 63,395 44,995 (29.0%) 44,995 0.0%
165 City Affordable Housing Fund 3,729,379 682,000 1,166,720 71.1% 1,168,177 0.1% 027 Community Facilities District No. 2019-1
(Lawrence Station) Fund
328,257 387,617 383,077 (1.2%) 450,298 17.5%
026 Convention Center Maintenance District
Fund
1,707,688 1,878,119 1,774,119 (5.5%) 1,774,119 0.0%
124 Developer Traffic Paym ents Fund 735,720 0 0 N/A 0 N/A 025 Downtown Parking Maintenance District
Fund
12,637 14,200 151,230 965.0% 158,850 5.0%
077 Endowment Care Fund 284,415 118,000 130,000 10.2% 130,000 0.0% 144 Engineering Operating Grant Trust Fund 55,753 0 0 N/A 0 N/A 079 Expendable Trust Fund 105,077 0 0 N/A 0 N/A
158 Fire Development Service F und 0 0 3,435,000 N/A 3,081,750 (10.3%) 178 Fire Operating Grant Trust Fund 298,861 32,745 4,006,904 12136.7% 4,513,514 12.6% 121 Gas Tax Fund 3,322,440 3,500,000 3,500,000 0.0% 3,500,000 0.0% 562 Housing and Urban Development Fund 3,407, 857 1,810,000 3,106,041 71.6% 1,518,534 (51.1%) 164 Housing Authority Fund 530,272 280,000 252,495 (9.8%) 252,496 0.0% 169 Housing Successor Agency Fund 6,522,898 350,000 1,306,326 273.2% 1,306,326 0.0% 072 Library Donations Trust Fund 23 0 0 N/A 0 N/A
112 Library Operating Grant Trust Fund 112,548 0 0 N/A 0 N/A 101 Other City Departments Operating Grant
Trust Fund
535,224 0 0 N/A 0 N/A
111 Parks and Recreation Operating Grant
Trust Fund
204,119 124,769 152,363 22.1% 152,363 0.0%
076 Perpetual Care Fund 558 500 500 0.0% 500 0.0%
177 Police Operating Grant Trust Fund 624,029 0 0 N/A 0 N/A 157 Prefunded Plan Review Fund 332,500 0 0 N/A 0 N/A
067 Public Donations Fund 185,099 0 0 N/A 0 N/A
221 Public, Educational, and Governmental
Fee Fund
232,867 200,000 200,000 0.0% 200,000 0.0%
122 Road Maintenance and Rehabilitation
(SB1) Fund
2,665,509 2,500,000 2,550,000 2.0% 2,550,000 0.0%
123 Traffic Mitigation Fund 1,414,767 1,150,000 1,150,000 0.0% 1,150,000 0.0% Total Special Revenue Funds 94,097,241 27,283,345 39,000,770 42.9% 38,195,922 (2.1%) Enterprise Funds
093 Cemetery Fund 1,649,154 1,498,500 1,576,500 5.2% 1,603,500 1.7%
77 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | REVENUE SUMMARY
Fund Type
FY 2021/22
Actual
FY 2022/23
Adopted
FY 2023/24
Proposed
Change
%
FY 2024/25
Proposed
Change
%
Enterprise Funds
860 Convention Center Enterprise Fund 10, 337,495 13,603,635 15,663,770 15.1% 18,193,014 16.1% 191 Electric Operating Grant Trust Fund 34,274,623 33,429,379 37,842,234 13.2% 40,164,067 6.1% 091 Electric Utility Fund 549,086,102 589, 799,417 684,767,499 16.1% 757,243,956 10.6% 094 Sewer Utility Fund 54,162,954 40, 459,345 43,500,825 7.5% 47,453,903 9.1% 096 Solid Waste Fund 34,486,563 37,2 80,456 39,613,321 6.3% 41,081,879 3.7% 097 Water Recycling Fund 6,491,607 5,708,446 7,668,868 34.3% 8,594,538 12.1% 092 Water Utility Fund 51,869,747 48, 358,520 60,726,490 25.6% 66,333,834 9.2% Total Enterprise Funds 742,358,245 770, 137,698 891,359,507 15.7% 980,668,691 10.0% Internal Service Funds
048 Communication Acquisitions Fund 584,334 829,358 995,232 20.0% 1,013,568 1.8% 053 Fleet Operations Fund 5,122,634 5,503,082 5,460,601 (0.8%) 5,649,029 3.5% 045 Information Technology Services Fund 12,064,738 12,259,626 13,094,932 6.8% 12,956,944 (1.1%) 044 Public Works Capital Projects
Management Fund
3,962,714 3,941,683 4,111,656 4.3% 4,362,916 6.1%
082 Special Liability Insurance Fund 12,873, 684 9,554,000 6,195,000 ( 35.2%) 6,497,000 4.9% 087 Unemployment Insurance Fund 382,211 0 0 N/A 0 N/A
050 Vehicle Replacement Fund 4,589,679 4,152,585 6,244,263 50.4% 6,251,978 0.1% 081 Workers' Compensation Fund 6,763, 278 5,835,000 6,097,000 4.5% 6,327,000 3.8% Total Internal Service Funds 46,343,272 42,075,334 42,198,684 0.3% 43,058,435 2.0% Capital Improvement Program Funds
593 Cemetery Capital Fund 8,409 9,225 0 (100.0%) 0 N/A
565 City Affordable Housing Capital Fund 5,630,375 0 0 N/A 0 N/A 865 Convention Center Capita l Fund 2,327,544 0 0 N/A 550,000 N/A 591 Electric Utility Capital Fund 58,984,364 108,668,826 358,335,039 229. 7% 56,252,674 (84.3%) 536 Fire Department Capital Fund 837, 110 588,153 427,374 (27.3%) 234,374 (45.2%) 539 General Government Capital Fund 1, 768,921 1,950,000 925,000 (52.6%) 875,000 (5.4%) 537 Library Department Capital Fund 7,872 281,831 0 (100.0%) 0 N/A 532 Parks and Recreation Capital Fund 21,367, 511 4,056,622 258,941 (93.6%) 4,776,181 1744.5% 542 Patrick Henry Drive Infrastructure
Improvement Fund
0 69,205 140,486 103.0% 73,419 (47.7%)
538 Public Buildings Capital Fund 397, 953 1,289,532 1,590,019 23.3% 180,272 (88.7%) 597 Recycled Water Capital Fund 50,000 0 0 N/A 0 N/A
540 Related Santa Clara Developer Fund 1, 063,068 2,902,465 968,330 ( 66.6%) 391,422 (59.6%) 594 Sewer Utility Capital Fund 7,710,382 4,364,913 13,867,222 217.7% 18,047,101 30.1% 596 Solid Waste Capital Fund 260,464 743,000 765,000 3.0% 788,000 3.0% 535 Storm Drain Capital Fund 2,085,628 2, 417,432 2,326,414 (3.8%) 1,553,633 (33.2%)
78 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | REVENUE SUMMARY
Fund Type
FY 2021/22
Actual
FY 2022/23
Adopted
FY 2023/24
Proposed
Change
%
FY 2024/25
Proposed
Change
%
Capital Improvement Program Funds
534 Street Lighting Capital Fund 48,629 71,455 125,000 74.9% 4,175,000 3240.0% 533 Streets and Highways Capital Fund 30,181,531 31,550,471 17,776,700 (43.7%) 15,568,079 (12.4%) 541 Tasman East Infrastructure Improvement
Fund
3,465,453 0 0 N/A 0 N/A
592 Water Utility Capital Fund 6,285,000 0 0 N/A 885,000 N/A Total Capital Improvement Program Funds 142,480,214 158,963,130 397,505,525 150.1% 104,350,155 (73.7%) Other Agency Fund
801 Sports and Open Space Authority Fund 139 250 10,000 3900.0% 10,200 2.0% Total Other Agency Fund 139 250 10,000 3900.0% 10,200 2.0% Debt Service Funds
491 Electric Utility Debt Service Fund 16,643,559 16,548,917 339,529,056 1951.7% 36,296,170 (89.3%) 431 Public Facilities Financing Corporation
Fund
2,502,062 1,403,275 1,402,940 (0.02%) 1,406,440 0.2%
494 Sewer Utility Debt Service Fund 1,889,035 1,889,035 30,000,000 1488.1% 1,050,000 (96.5%) Total Debt Service Funds 21,034,656 19,841,227 370,931,996 1769.5% 38,752,610 (89.6%) Grand Total Revenues 1,288,497,313 1,260,359,369 2,015,270,082 59.9% 1,492,377,994 (25.9%) 79 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | EXPENDITURES SUMMARY
Fund Type
FY 2021/22
Actual
FY 2022/23
Adopted
FY 2023/24
Proposed
Change
%
FY 2024/25
Proposed
Change
%
General Fund
001 General Fund 258,194,456 272,355,355 280,7 73,558 3.1% 287,458,968 2.4% Total General Fund 258,194,456 272,355,355 280,773,558 3.1% 287,458,968 2.4% Special Revenue F unds
102 American Rescue Plan Act Fund 26,231,326 0 0 N/A 0 N/A 463 Bridge Maintenance District #2 Fund 80,000 80,000 80,000 0.0% 80,000 0.0% 155 Building Development Services Fund 11, 383,394 13,548,582 13,874 ,054 2.4% 14,846,926 7.0% 220 Building Special Programs and Training
Fund
29,120 61,765 44,995 (27.2%) 44,995 0.0%
165 City Affordable Housing Fund 5,085,499 1,685,731 1,559,557 (7.5%) 1,595,486 2.3% 027 Community Facilities District No. 2019-1
(Lawrence Station) Fund
13,924 350,507 373,273 6.5% 384,471 3.0%
026 Convention Center Maintenance District
Fund
1,877,763 1,878,119 1,919,119 2.2% 1,774,119 (7.6%)
124 Developer Traffic Payments Fund 0 1,108,500 0 (100.0%) 0 N/A 025 Downtown Parking Maintenance District
Fund
125,975 137,521 136,990 (0.4%) 144,609 5.6%
077 Endowment Care Fund 29,663 28,000 30,000 7.1% 30,000 0.0% 144 Engineering Operating Grant Trust Fund 41,359 0 0 N/A 0 N/A 079 Expendable Trust Fund 344,094 0 0 N/A 0 N/A
158 Fire Development Service Fund 0 0 3,109,073 N/A 3,264,818 5.0% 178 Fire Operating Grant Trust Fund 267,425 36,019 4,006,904 11024.4% 4,513,514 12.6% 121 Gas Tax Fund 3,946,580 2,985,000 4,650,000 55.8% 2,550,000 (45.2%) 562 Housing and Urban Development Fund 3,255,558 2,379,814 3,744,641 57.4% 2,115,381 (43.5%) 164 Housing Authority Fund 170,739 380,363 457,193 20.2% 414,581 (9.3%) 169 Housing Successor Agency Fund 12,434, 115 1,242,599 873,227 (29.7%) 899,463 3.0% 072 Library Donations Trust Fund 0 0 0 N/A 0 N/A
112 Library Operating Grant Trust Fund 101,801 0 0 N/A 0 N/A 101 Other City Departm ents Operating Grant
Trust Fund
668,157 0 0 N/A 0 N/A
111 Parks and Recreation Operating Grant
Trust Fund
212,586 124,769 152,363 22.1% 152,363 0.0%
076 Perpetual Care Fund 558 500 500 0.0% 500 0.0%
177 Police Operating Grant Trust Fund 445,350 0 0 N/A 0 N/A 157 Prefunded Plan Review Fund 556,750 0 0 N/A 0 N/A
067 Public Donations Fund 36,215 0 0 N/A 0 N/A
221 Public, Educational, and Governmental
Fee Fund
86,590 200,000 200,000 0.0% 200,000 0.0%
122 Road Maintenance and Rehabilitation
(SB1) Fund
2,100,000 2,500,000 2,500,000 0.0% 2,500,000 0.0%
123 Traffic Mitigation Fund 2,593,378 850 ,000 700,000 (17.6%) 1,600,000 128.6% Total Special Revenue Funds 72,117,919 29,577,789 38,411,889 29.9% 37,111,226 (3.4%) Enterprise Funds
093 Cemetery Fund 1,437,087 1,540,618 1,535, 171 (0.4%) 1,591,088 3.6% 80 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | EXPENDITURES SUMMARY
Fund Type
FY 2021/22
Actual
FY 2022/23
Adopted
FY 2023/24
Proposed
Change
%
FY 2024/25
Proposed
Change
%
Enterprise Funds
860 Convention Center Enterprise Fund 9,613,569 14,373,644 16,103,582 12.0% 18,284,444 13.5% 191 Electric Operating Grant Trust Fund 19, 762,860 33,549,786 42,917,231 27. 9% 34,309,180 (20.1%) 091 Electric Utility Fund 552,668, 320 642,336,205 676,086,628 5.3% 752,145,329 11.2% 094 Sewer Utility Fund 35,815,458 34, 174,214 33,856,908 (0.9%) 50,232,161 48.4% 096 Solid Waste Fund 32,300,731 37, 124,239 39,316,243 5.9% 40,785,274 3.7% 097 Water Recycling Fund 5,617,355 5,729,413 8,234,584 43.7% 9,502,867 15.4% 092 Water Utility Fund 51,154,645 47,036,501 54,294,067 15.4% 61,185,602 12.7% Total Enterprise Funds 708,370,025 815,864,620 872,344,414 6.9% 968,035,945 11.0% Internal Service Funds
048 Communication Acquisitions Fund 373,997 829,358 995,232 20.0% 1,013,568 1.8% 053 Fleet Operations Fund 4,853,639 5,661,850 5,462,441 (3.5%) 5,651,174 3.5% 045 Information Technology Services Fund 10,294,656 12,758,301 13,094,932 2.6% 12,956,944 (1.1%) 044 Public Works Capital Projects
Management Fund
3,754,799 3,941,683 4,111,656 4.3% 4,362,916 6.1%
082 Special Liability Insurance Fund 7,366,850 9,554,000 6,195,000 ( 35.2%) 6,497,000 4.9% 087 Unemployment Insurance Fund 102,803 150,000 105,000 (30.0%) 110,000 4.8% 050 Vehicle Replacement Fund 3,038,474 3,444,961 2,789,600 (19.0%) 4,711,000 68.9% 081 Workers' Compensation Fund 5,056,631 6,089,000 6,097,000 0.1% 6,327,000 3.8% Total Internal Service Funds 34,841,849 42,429,153 38,850,861 (8.4%) 41,629,602 7.2% Capital Improvement Program Funds
593 Cemetery Capital Fund 30,011 243,205 0 (100.0%) 0 N/A 565 City Affordable Housing Capital Fund 0 0 0 N/A 0 N/A 865 Convention Center Capital Fund 2,781,902 2,622,854 0 (100.0%) 550,000 100.0% 591 Electric Utility Capi tal Fund 57,339,865 183,989,038 351, 572,203 91.1% 56,252,674 (84.0%) 536 Fire Department Capital Fund 413,250 1,438,505 427,374 (70.3%) 234,374 (45.2%) 539 General Government Capital Fund 3,887,224 8,143,806 925,000 (88.6%) 875,000 (5.4%) 537 Library Department Capita l Fund 47,454 448,142 0 (100.0%) 0 N/A 532 Parks and Recreation Capital Fund 7, 258,180 25,218,603 1,298,457 ( 94.9%) 5,588,401 330.4% 542 Patrick Henry Drive Infrastructure
Improvement Fund
0 69,205 140,486 103.0% 73,419 (47.7%)
538 Public Buildings Capital Fund 3,896,179 3,580,448 1,590,019 (55. 6%) 180,272 (88.7%) 597 Recycled Water Capital Fund 3,540 50,000 50,000 0.0% 50,000 0.0% 540 Related Santa Clara Developer Fund 1,003,733 2,902,465 968,330 (66.6%) 391,422 (59.6%) 594 Sewer Utility Capital Fund 40,895,438 43,132,893 13,721,801 (68.2%) 18,192,330 32.6% 596 Solid Waste Capital Fund 815,194 743,000 765,000 3.0% 788,000 3.0% 535 Storm Drain Capital Fund 5,035,397 4, 858,321 2,326,414 (52.1%) 1,553,633 (33.2%) 534 Street Lighting Capital Fund 117,469 4,723,844 125,000 (97.4%) 4,175,000 3240.0%
81 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | EXPENDITURES SUMMARY
Fund Type
FY 2021/22
Actual
FY 2022/23
Adopted
FY 2023/24
Proposed
Change
%
FY 2024/25
Proposed
Change
%
Capital Improvement Program Funds
533 Streets and Highways Capital
Fund
16,309,459 65,675,118 17,776,700 (72.9%) 15,568,079 (12.4%) 541 Tasman East Infrastructure
Improvement Fund
216,182 2,876,218 27,330 (99.0%) 28,150 3.0%
592 Water Utility Capital Fund 5,833,403 6,665,000 5,165,000 (22.5%) 3,885,000 (24.8%) 145,883,880 357,380,665 396,879,114 11.1% 108,385,754 (72.7%) Other Agency Fund
801 Sports and Open Space Authority
Fund
9,163 5,420 10,000 84.5% 10,200 2.0%
Total Other Agency Fund 9,163 5,420 10,000 84.5% 10,200 2.0% Debt Service Funds
491 Electric Utility Debt Service Fund 16,301,979 16,548,917 339,529,056 1951.7% 36,296,170 (89.3%) 431 Public Facilities Financing
Corporation Fund
2,502,604 1,403,275 1,402,440 (0.1%) 1,405,940 0.2%
494 Sewer Utility Debt Service Fund 1,140,948 1,889,035 34,041,553 1702.1% 2,945,824 (91.3%) Total Debt Service Funds 19,945,531 19,841,227 374,973,049 1789.9% 40,647,934 (89.2%) Grand Total Expenditures 1,239,362,823 1,537,454,229 2,002,242,885 30.2% 1,483,279,629 (25.9%) Total Capital Improvement Program
Funds
82 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSFER SCHEDULE BUDGET SUMMARY | TRANSFER SCHEDULE
Fund From To From To
From General Fund (001) 11,645,161 7,720,872
To Cemetery Fund (093) 796,000 823,000
To Convention Center Maintenance District Fund (026) 805,383 805,383 To Downtown Parking Maintenance District Fund (025) 137,030 144,650 To Fire Department Capital Fund (536) 427,374 234,374
To Fire Development Services Fund (158) 500,000 0
To Fire Operating Grant Trust Fund (178) 626,000 770,000 To General Government Capital Fund (539) 90,283 40,283
To Parks and Recreation Capital Fund (532) 258,941 276,181 To Parks and Recreation Operating Grant Trust Fund (111) 27,445 27,445 To Public Buildings Capital Fund (538) 1,590,019 180,272 To Public Facilities Financing Corporation Fund (431) 1,402,440 1,405,940 To Solid Waste Fund (096) 35,364 35,364
To Sports and Open Space Authority Fund (801) 10,000 10,200 To Storm Drain Capital Fund (535) 872,414 99,633
To Streets and Highways Capital Fund (533) 4,066,468 2,868,147 Subtotal Transfer from General Fund 11,645,161 11,645,161 7,720,872 7,720,872 From Vehicle Replacement Fund (050) 149,600 0
To General Fund (001) 149,600 0
Subtotal Transfer from Vehicle Replacement Fund 149,600 149,600 0 0 From Perpetual Care Fund (076) 500 500
To Cemetery Fund (093) 500 500
Subtotal Transfer from Perpetual Care Fund 500 500 500 500 From Endowment Care Fund (077) 30,000 30,000
To Cemetery Fund (093) 30,000 30,000
Subtotal Transfer from Endowment Care Fund 30,000 30,000 30,000 30,000 From Electric Utility Debt Service Fund (491) 305,250,000 0 To Electric Utility Capital Fund (591) 305,250,000 0
Subtotal Transfer from Electric Utility Debt Service Fund 305,250,000 305,250,000 0 0 From Sewer Utility Debt Service Fund (494) 10,000,000 0 To Sewer Utility Capital Fund (594) 10,000,000 0
Subtotal Transfer from Sewer Utility Debt Service Fund 10,000,000 10,000,000 0 0 Proposed FY 2023/24
Transfer
Proposed FY 2024/25
Transfer
83 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSFER SCHEDULE BUDGET SUMMARY | TRANSFER SCHEDULE
Fund From To From To
From Electric Utility Fund (091) 49,269,687 92,473,903
To General Fund (001) 349,749 373,736
To Electric Utility Debt Service Fund (491) 34,279,056 36,296,170 To Street Lighting Capital Fund (534) 125,000 4,175,000 To General Government Capital Fund (539) 596,323 596,323 To Electric Utility Capital Fund (591) 13,919,559 51,032,674 Subtotal Transfer from Electric Utility Fund 49,269,687 49,269,687 92,473,903 92,473,903 From Water Utility Fund (092) 278,936 1,163,936
To Electric Utility Capital Fund (591) 120,000 120,000
To General Government Capital Fund (539) 158,936 158,936 To Water Utility Capital Fund (592) 0 885,000
Subtotal Transfer from Water Utility Fund 278,936 278,936 1,163,936 1,163,936 From Cemetery Fund (093) 822 822
To General Government Capital Fund (539) 822 822
Subtotal Transfer from Cemetery Fund 822 822 822 822
From Sewer Utility Fund (094) 3,917,500 19,147,379
To General Government Capital Fund (539) 50,278 50,278
To Sewer Utility Debt Service Fund (494) 0 1,050,000
To Sewer Utility Capital Fund (594) 3,867,222 18,047,101 Subtotal Transfer from Sewer Utility Fund 3,917,500 3,917,500 19,147,379 19,147,379 From Solid Waste Fund (096) 533,621 549,621
To General Government Capital Fund (539) 26,621 26,621
To Solid Waste Capital Fund (596) 507,000 523,000
Subtotal Transfer from Solid Waste Fund 533,621 533,621 549,621 549,621 From Gas Tax Fund (121) 4,650,000 2,550,000
To Streets and Highways Capital Fund (533) 4,650,000 2,550,000 Subtotal Transfer from Gas Tax Fund 4,650,000 4,650,000 2,550,000 2,550,000 From Road Maintenance and Rehabilitation (SB1) Fund 2,500,000 2,500,000 To Streets and Highways Capital Fund (533) 2,500,000 2,500,000 Subtotal Transfer from Road Maintenance and
Rehabilitation (SB1) Fund
2,500,000 2,500,000 2,500,000 2,500,000
From Traffic Mitigation Fund (123) 700,000 1,600,000
To Streets and Highways Capital Fund (533) 700,000 1,600,000 Subtotal Transfer from Traffic Mitigation Fund 700,000 700,000 1,600,000 1,600,000 Proposed FY 2023/24
Transfer
Proposed FY 2024/25
Transfer
84 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | TRANSFER SCHEDULE BUDGET SUMMARY | TRANSFER SCHEDULE
Fund From To From To
From Building Development Services Fund (155) 184,462 194,530 To General Fund (001) 175,725 185,793
To General Government Capital Fund (539) 1,737 1,737
To Building Special Programs & Training Fund (220) 7,000 7,000 Subtotal Transfer from Building Development Services
Fund
184,462 184,462 194,530 194,530
From Electric Operating Grant Trust Fund (191) 22,422,522 12,609,417 To Vehicle Replacement Fund (050) 1,500,000 1,500,000
To Electric Utility Fund (091) 19,637,522 9,594,417
To Electric Utility Capital Fund (591) 1,000,000 1,000,000 To Streets and Highways Capital Fund (533) 285,000 515,000 Subtotal Transfer from Electric Operating Grant Trust
Fund
22,422,522 22,422,522 12,609,417 12,609,417
From Building Special Programs and Training Fund (220) 1,765 1,765 To General Fund (001) 1,765 1,765
Subtotal Transfer from Building Special Programs and
Training Fund
1,765 1,765 1,765 1,765
From Bridge Maintenance District #2 Fund (463) 80,000 80,000 To Streets and Highways Capital Fund (533) 80,000 80,000 Subtotal Transfer from Bridge Maintenance District #2
Fund
80,000 80,000 80,000 80,000
From Patrick Henry Drive Infrastructure Improvement
Fund (542)
69,205 0
To General Fund (001) 69,205 0
Subtotal Transfer from Patrick Henry Drive Infrastructure Improvement Fund
69,205 69,205 0 0
From Storm Drain Capital Fund (535) 1,519,000 1,454,000 To General Fund (001) 1,454,000 1,454,000
To Electric Utility Capital Fund (591) 65,000 0
Subtotal Transfer from Storm Drain Capital Fund 1,519,000 1,519,000 1,454,000 1,454,000 Total Transfers 413,202,781 413,202,781 142,076,745 142,076,745 Proposed FY 2023/24
Transfer
Proposed FY 2024/25
Transfer
85 FY 202 3/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SUMMARY OF FUND ACTIVITY BUDGET SUMMARY | SUMMARY OF FUND ACTIVITY
Fund
Beginning Fund
Balance
Revenue and
Transfers
Total Sources
Available
Expenditures
and Transfers
Ending Fund
Balance
Total Uses
Available *
General Fund 110,850,377 274,263,600 385,113,977 280,773,558 104,340,419 385,113, 977 Special Revenue and Other Funds
Bridge Maintenance District #2 Fund 148,017 80,000 228,017 80,000 148,017 228,017 Building Development Services Fund 26,815,660 15,611,000 42,426,660 13,874,054 28,552,606 42,426,660 Building Special Programs and Training Fund 221,804 44,995 266,799 44,995 221,804 266,799 City Affordable Housing Fund 11,597,158 1,166,720 12,763,878 1,559,557 11,204,321 12,763,878 Community Facilities District No. 2019-1 (Lawrence Station) Fund 616,667 383,077 999,744 373,273 626,471 999,744 Convention Center Maintenance District Fund 145,000 1,774,119 1,919,119 1,919,119 0 1,919,1 19 2 Developer Traffic Payments Fund 8,677,690 0 8,677,690 0 8,677,690 8,677,690 Downtown Parking Maintenance Fund 497,308 151,230 648,538 136,990 511,548 648,538 Endowment Care Fund 2,281,392 130,000 2,411,392 30,000 2,381,392 2,411,392 Expendable Trust Fund 25,352 0 25,352 0 25,352 25,352
Fire Development Services Fund 0 3,435,000 3,435,000 3,109,073 325,927 3,435,000 Fire Operating Grant Trust Fund 0 4,006,904 4,006,904 4,006,904 0 4,006,904 Gas Tax Fund 2,339,767 3,500,000 5,839,767 4,650,000 1,189,767 5,839,767 9 Housing and Urban Development Fund 2,582,602 3,106,041 5,688,643 3,744,641 1,944,002 5,688,643 3 Housing Authority Fund 4,039,115 252,495 4,291,610 457,193 3,834,417 4,291,610 Housing Successor Agency Fund 3,717,518 1,306,326 5,023,844 873,227 4,150,617 5,023,844 5 Other City Departments Operating Grant Trust Fund 29,876 0 29,876 0 29,876 29,876 Parks and Recreation Operating Grant Trust Fund 123,091 152,363 275,454 152,363 123,091 275,454 Perpetual Care Fund 38,244 500 38,744 500 38,244 38,744 Police Operating Grant Trust Fund 51,110 0 51,110 0 51,110 51,110 Prefunded Plan Review Fund 32,614 0 32,614 0 32,614 32,614 Public, Educational, and Governmental Fee Fund 2,722,984 200,000 2,922,984 200,000 2,722,984 2,922,984 Road Maintenance and Rehabilitation (SB1) Fund 971,779 2,550,000 3,521,779 2,500,000 1,021,779 3,521,779 Traffic Mitigation Fund 2,512,561 1,150,000 3,662,561 700,000 2,962,561 3,662,561 9 Total Special Revenue and Other Funds 70,187,309 39,000,770 109,188,079 38,411,889 70,776,190 109,188,079 FY 2023/24
86 City of
Santa Clara
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SUMMARY OF FUND ACTIVITY BUDGET SUMMARY | SUMMARY OF FUND ACTIVITY
Fund
Beginning Fund
Balance
Revenue and
Transfers
Total Sources
Av ailable
Expenditures
and Transfers
Ending Fund
Balance
Total Uses
Available *
Enterprise Funds
Cemetery Fund 350,118 1,576,500 1,926,618 1,535,171 391,447 1,926,618 7 Convention Center Enterprise Fund 2,128,475 15,663,770 17,792,245 16,103,582 1,688,663 17,792,245 8 Electric Operating Grant Trust Fund 72,752,529 37,842,234 110,594,763 42,917,231 67,677,532 110,594,763 Electric Utility Fund 287,904,874 684,767,499 972,672,373 676,086,628 296,585,745 972,672,373 Sewer Utility Fund 19,552,699 43,500,825 63,053,524 33,856,908 29,196,616 63,053,524 5 Solid Waste Fund 10,727,320 39,613,321 50,340,641 39,316,243 11,024,398 50,340,641 Water Recycling Fund 6,632,668 7,668,868 14,301,536 8,234,584 6,066,952 14,301,536 Water Utility Fund 13,530,353 60,726,490 74,256,843 54,294,067 19,962,776 74,256,843 5 Total Enterprise Funds 413,579,036 891,359,507 1,304,938,543 872,344,414 432,594,129 1,304,938,543 Internal Service Funds
Communication Acquisitions Fund 1,778,773 995,232 2,774,005 995,232 1,778,773 2,774,005 Fleet Operations Fund 1,011,479 5,460,601 6,472,080 5,462,441 1,009,639 6,472,080 Information Technology Services Fund 3,371,091 13,094,932 16,466,023 13,094,932 3,371,091 16,466,023 Public Works Capital Projects Management Fund 689,300 4,111,656 4,800,956 4,111,656 689,300 4,800,956 Special Liability Insurance Fund 10,215,485 6,195,000 16,410,485 6,195,000 10,215,485 16,410,485 Unemployment Insurance Fund 315,585 0 315,585 105,000 210,585 315,585 7 Vehicle Replacement Fund 12,473,659 6,244,263 18,717,922 2,789,600 15,928,322 18,717,922 5 Workers' Compensation Fund 9,141,173 6,097,000 15,238,173 6,097,000 9,141,173 15,238,173 Total Internal Service Funds 38,996,545 42,198,684 81,195,229 38,850,861 42, 344,368 81,195,229 Capital Improvement Program Funds
Cemetery Capital Fund 44,418 0 44,418 0 44,418 44,418
City Affordable Housing Capital Fund 5,760,576 0 5,760,576 0 5,760,576 5,760,576 C o n v e n t i o n C e n t e r C a p i t a l F u n d 000000 Electric Utility Capital Fund 45,052,229 358,335,039 403,387,268 351,572,203 51,815,065 403,387,268 1,9 Fire Department Capital Fund 918,327 427,374 1,345,701 427,374 918,327 1,345,701 General Government Capital Fund 1,259,721 925,000 2,184,721 925,000 1,259,721 2,184,721 FY 2023/24
87 City of
Santa Clara
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SUMMARY OF FUND ACTIVITY BUDGET SUMMARY | SUMMARY OF FUND ACTIVITY
Fund
Beginning Fund
Balance
Revenue and
Transfers
Total Sources
Av ailable
Expenditures
and Transfers
Ending Fund
Balance
Total Uses
Available *
Capital Improvement Program Funds
Library Department Capital Fund 131,279 0 131,279 0 131,279 131,279 Parks and Recreation Capital Fund 19,324,977 258,941 19,583,918 1,298,457 18,285,461 19,583,918 Patrick Henry Drive Infrastructure Improvement Fund 0 140,486 140,486 140,486 0 140,486 Public Buildings Capital Fund 1,670,153 1,590,019 3,260,172 1,590,019 1,670,153 3,260,172 Recycled Water Capital Fund 622,874 0 622,874 50,000 572,874 622,874 Related Santa Clara Developer Fund 598,382 968,330 1,566,712 968,330 598,382 1,566,712 Sewer Utility Capital Fund 24,486,496 13,867,222 38,353,718 13,721,801 24,631,917 38,353,718 Solid Waste Capital Fund 1,076,436 765,000 1,841,436 765,000 1,076,436 1,841,436 Storm Drain Capital Fund 4,361,253 2,326,414 6,687,667 2,326,414 4,361,253 6,687,667 Street Lighting Capital Fund 469,476 125,000 594,476 125,000 469,476 594,476 Streets and Highways Capital Fund 13,010,357 17,776,700 30,787,057 17,776,700 13,010,357 30,787,057 Tasman East Infrastructure Improvement Fund 4,456,402 0 4,456,402 27,330 4,429,072 4,456,402 Water Utility Capital Fund 15,273,782 0 15,273,782 5,165,000 10,108,782 15,273,782 7,9 Total Capital Improvement Program Funds 138,517,138 397,505,525 536,022,663 396,879,114 139,143,549 536,022,663 Other Agency Funds
Sports and Open Space Authority Fund 1,392 10,000 11,392 10,000 1,392 11,392 Total Other Agency Funds 1,392 10,000 11,392 10,000 1,392 11,392 Debt Service Funds
Electric Utility Debt Service Fund 13,770,773 339,529,056 353,299,829 339,529,056 13,770,773 353,299,829 Public Facilities Financing Corporation Fund 722,541 1,402,940 2,125,481 1,402,440 723,041 2,125,481 Sewer Utility Debt Service Fund 6,005,257 30,000,000 36,005,257 34,041,553 1,963,704 36,005,257 7 Total Debt Service Funds 20,498,571 370,931,996 391,430,567 374,973,049 16,457,518 391,430,567 Total City Funds 792,630,368 2, 015,270,082 2,807,900,450 2,002,242,885 805,657,565 2,807,900,450 FY 2023/24
88 City of
Santa Clara
FY 202 3/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SUMMARY OF FUND ACTIVITY BUDGET SUMMARY | SUMMARY OF FUND ACTIVITY
Fund
Beginning Fund
Balance
Revenue and
Transfers
Total Sources
Available
Expenditures
and Transfers
Ending Fund
Balance
Total Uses
Available *
General Fund 104,340,419 287,341,981 391,682,400 287,458,968 104,223,432 391,682, 400 Special Revenue and Other Funds
Bridge Maintenance District #2 Fund 148,017 80,000 228,017 80,000 148,017 228,017 Building Development Services Fund 28,552,606 16,164,000 44,716,606 14,846,926 29,869,680 44,716,606 Building Special Programs and Training Fund 221,804 44,995 266,799 44,995 221,804 266,799 City Affordable Housing Fund 11,204,321 1,168,177 12,372,498 1,595,486 10,777,012 12,372,498 Community Facilities District No. 2019-1 (Lawrence Station) Fund 626,471 450,298 1,076,769 384,471 692,298 1,076, 7 69 5 Convention Center Maintenance District Fund 0 1,774,119 1,774,119 1,774,119 0 1,774,1 19 Developer Traffic Payments Fund 8,677,690 0 8,677,690 0 8,677,690 8,677,690 Downtown Parking Maintenance Fund 511,548 158,850 670,398 144,609 525,789 670,398 Endowment Care Fund 2,381,392 130,000 2,511,392 30,000 2,481,392 2,511,392 Expendable Trust Fund 25,352 0 25,352 0 25,352 25,352
Fire Development Services Fund 325,927 3,081,750 3,407,677 3,264,818 142,859 3,407,677 7 Fire Operating Grant Trust Fund 0 4,513,514 4,513,514 4,513,514 0 4,513,514 Gas Tax Fund 1,189,767 3,500,000 4,689,767 2,550,000 2,139,767 4,689,767 9 Housing and Urban Development Fund 1,944,002 1,518,534 3,462,536 2,115,381 1,347,155 3,462,536 7 Housing Authority Fund 3,834,417 252,496 4,086,913 414,581 3,672,332 4,086,913 Housing Successor Agency Fund 4,150,617 1,306,326 5,456,943 899,463 4,557,480 5,456,943 Other City Departments Operating Grant Trust Fund 29,876 0 29,876 0 29,876 29,876 Parks and Recreation Operating Grant Trust Fund 123,091 152,363 275,454 152,363 123,091 275,454 Perpetual Care Fund 38,244 500 38,744 500 38,244 38,744 Police Operating Grant Trust Fund 51,110 0 51,110 0 51,110 51,110 Prefunded Plan Review Fund 32,614 0 32,614 0 32,614 32,614 Public, Educational, and Governmental Fee Fund 2,722,984 200,000 2,922,984 200,000 2,722,984 2,922,984 Road Maintenance and Rehabilitation (SB1) Fund 1,021,779 2,550,000 3,571,779 2,500,000 1,071,779 3,571,779 Traffic Mitigation Fund 2,962,561 1,150,000 4,112,561 1,600,000 2,512,561 4,112,561 9 Total Special Revenue and Other Funds 70,776,190 38,195,922 108,972,112 37,111,226 71,860,886 108,972,112 FY 2024/25
89 City of
Santa Clara
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SUMMARY OF FUND ACTIVITY BUDGET SUMMARY | SUMMARY OF FUND ACTIVITY
Fund
Beginning Fund
Balance
Revenue and
Transfers
Total Sources
Av ailable
Expenditures
and Transfers
Ending Fund
Balance
Total Uses
Available *
Enterprise Funds
Cemetery Fund 391,447 1,603,500 1,994,947 1,591,088 403,859 1,994,947 Convention Center Enterprise Fund 1,688,663 18,193,014 19,881,677 18,284,444 1,597,233 19,881,677 Electric Operating Grant Trust Fund 67,677,532 40,164,067 107,841,599 34,309,180 73,532,419 107,841,599 Electric Utility Fund 296,585,745 757,243,956 1,053,829,701 752,145,329 301,684,372 1,053,829,701 Sewer Utility Fund 29,196,616 47,453,903 76,650,519 50,232,161 26,418,358 76,650,519 Solid Waste Fund 11,024,398 41,081,879 52,106,277 40,785,274 11,321,003 52,106,277 Water Recycling Fund 6,066,952 8,594,538 14,661,490 9,502,867 5,158,623 14,661,490 4,7 Water Utility Fund 19,962,776 66,333,834 86,296,610 61,185,602 25,111,008 86,296,610 4 Total Enterprise Funds 432,594,129 980,668,691 1,413,262,820 968,035,945 445,226,875 1,413,262,820 Internal Service Funds
Communication Acquisitions Fund 1,778,773 1,013,568 2,792,341 1,013,568 1,778,773 2,792,341 Fleet Operations Fund 1,009,639 5,649,029 6,658,668 5,651,174 1,007,494 6,658,668 Information Technology Services Fund 3,371,091 12,956,944 16,328,035 12,956,944 3,371,091 16,328,035 Public Works Capital Projects Management Fund 689,300 4,362,916 5,052,216 4,362,916 689,300 5,052,216 Special Liability Insurance Fund 10,215,485 6,497,000 16,712,485 6,497,000 10,215,485 16,712,485 Unemployment Insurance Fund 210,585 0 210,585 110,000 100,585 210,585 7 Vehicle Replacement Fund 15,928,322 6,251,978 22,180,300 4,711,000 17,469,300 22,180,300 Workers' Compensation Fund 9,141,173 6,327,000 15,468,173 6,327,000 9,141,173 15,468,173 Total Internal Service Funds 42,344,368 43,058,435 85,402,803 41,629,602 43, 773,201 85,402,803 Capital Improvement Program Funds
Cemetery Capital Fund 44,418 0 44,418 0 44,418 44,418
City Affordable Housing Capital Fund 5,760,576 0 5,760,576 0 5,760,576 5,760,576 Convention Center Capital Fund 0 550,000 550,000 550,000 0 550,000 Electric Utility Capital Fund 51,815,065 56,252,674 108,067,739 56,252,674 51,815,065 108,067,739 Fire Department Capital Fund 918,327 234,374 1,152,701 234,374 918,327 1,152,701 General Government Capital Fund 1,259,721 875,000 2,134,721 875,000 1,259,721 2,134,721 FY 2024/25
90 City of
Santa Clara
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SUMMARY OF FUND ACTIVITY BUDGET SUMMARY | SUMMARY OF FUND ACTIVITY
Fund
Beginning Fund
Balance
Revenue and
Transfers
Total Sources
Av ailable
Expenditures
and Transfers
Ending Fund
Balance
Total Uses
Available *
Capital Improvement Program Funds
Library Department Capital Fund 131,279 0 131,279 0 131,279 131,279 Parks and Recreation Capital Fund 18,285,461 4,776,181 23,061,642 5,588,401 17,473,241 23,061,642 Patrick Henry Drive Infrastructure Improvement Fund 0 73,419 73,419 73,419 0 73,419 Public Buildings Capital Fund 1,670,153 180,272 1,850,425 180,272 1,670,153 1,850,425 Recycled Water Capital Fund 572,874 0 572,874 50,000 522,874 572,874 Related Santa Clara Developer Fund 598,382 391,422 989,804 391,422 598,382 989,804 Sewer Utility Capital Fund 24,631,917 18,047,101 42,679,018 18,192,330 24,486,688 42,679,018 Solid Waste Capital Fund 1,076,436 788,000 1,864,436 788,000 1,076,436 1,864,436 Storm Drain Capital Fund 4,361,253 1,553,633 5,914,886 1,553,633 4,361,253 5,914,886 Street Lighting Capital Fund 469,476 4,175,000 4,644,476 4,175,000 469,476 4,644,476 Streets and Highways Capital Fund 13,010,357 15,568,079 28,578,436 15,568,079 13,010,357 28,578,436 Tasman East Infrastructure Improvement Fund 4,429,072 0 4,429,072 28,150 4,400,922 4,429,072 Water Utility Capital Fund 10,108,782 885,000 10,993,782 3,885,000 7,108,782 10,993,782 7,9 Total Capital Improvement Program Funds 139,143,549 104,350,155 243,493,704 108,385,754 135,107,950 243,493,704 Other Agency Funds
Sports and Open Space Authority Fund 1,392 10,200 11,592 10,200 1,392 11,592 Total Other Agency Funds 1,392 10,200 11,592 10,200 1,392 11,592 Debt Service Funds
Electric Utility Debt Service Fund 13,770,773 36,296,170 50,066,943 36,296,170 13,770,773 50,066,943 Public Facilities Financing Corporation Fund 723,041 1,406,440 2,129,481 1,405,940 723,541 2,129,481 Sewer Utility Debt Service Fund 1,963,704 1,050,000 3,013,704 2,945,824 67,880 3,013,704 7 Total Debt Service Funds 16,457,518 38,752,610 55,210,128 40,647,934 14, 562,194 55,210,128 Total City Funds 805,657,565 1, 492,377,994 2,298,035,559 1,483,279,629 814,755,930 2,298,035,559 FY 2024/25
91 City of
Santa Clara
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SUMMARY OF FUND ACTIVITY BUDGET SUMMARY | SUMMARY OF FUND ACTIVITY
*Explanations for FY 2023/24 Beginning Fund Balance and Ending Fund Balance Changes Greater Than 10%
1. The accumulation of surplus revenues and/or expenditure savings is being used for budget balancing purposes.
2. The beginning fund balance includes carryover of the prior year's budget. If these carryovers are removed, the change in fund balance is less than 10% (except in the Electric Capital Fund where the change in fund balance is above 10%)
3. The accumulation of savings is being used for various one-time uses.
4. This fund's expenditure budget is determined using rates, fees and charges estimates for cost recovery; reflects the ramp up of activity
5. The accumulation of savings is being used to support future years' uses and/or to establish recommended reserve levels.
6. The establishment or elimination of the fund.
7. The planned draw down of accumulated fund balance and/or reserves
8. The revenue and expenditure activity are provided and managed by an outside agency; reflects planned use of fund balance to support expenditures.
9. Changes in expenditure levels related to timing changes in capital expenditures. *Explanations for FY 2024/25 Beginning Fund Balance and Ending Fund Balance Changes Greater Than 10%
1. The accumulation of surplus revenues and/or expenditure savings is being used for budget balancing purposes.
2. The beginning fund balance includes carryover of the prior year's budget. If these carryovers are removed, the change in fund balance is less than 10%.
3. The accumulation of savings is being used for various one-time uses.
4. This fund's expenditure budget is determined using rates, fees and charges estimates for cost recovery; reflects the ramp up of activity
5. The accumulation of savings is being used to support future years' uses and/or to establish recommended reserve levels.
6. The establishment or elimination of the fund.
7. The planned draw down of accumulated fund balance and/or reserves
8. The revenue and expenditure activity are provided and managed by an outside agency; reflects planned use of fund balance to support expenditures.
9. Changes in expenditure levels related to timing changes in capital expenditures.
92 City of
Santa Clara
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | OPERATING EXPENDITURES BY
CATEGORY
FY 2022/23
Adopted
FY 2023/24
Proposed % Change
FY 2024/25
Proposed % Change
Salary and Benefits
Salary 168,750,461 179,767,609 6.5% 190,089,678 5.7%
As-Needed 8,003,445 8,821,262 10.2% 9,176,068 4.0%
Overtime 14,431,196 16,086,099 11.5% 15,212,181 (5.4%)
Retirement 76,841,754 78,294,083 1.9% 83,479,729 6.6%
Health Allocations 15,328,753 19,229,579 25.4% 20,292,053 5.5% Medicare 2,783,107 3,073,912 10.4% 3,249,454 5.7%
Social Security 6,171,635 7,078,370 14.7% 7,358,503 4.0% Other Benefits 8,913,804 10,322,997 15.8% 10,812,055 4.7% Total Salary and Benefits 301,224,155 322,673,911 7.1% 339,669,721 5.3% Non-Personnel
Materials/Services/Supplies 170,360,467 218,224,123 28.1% 217,485,387 (0.3%) Resource/Production 467,782,207 482,928,683 3.2% 520,393,604 7.8% Interfund Services 53,193,665 55,992,674 5.3% 57,221,526 2.2% Contribution In Lieu/Franchise 29,365,508 34,813,302 18.6% 38,453,696 10.5% Capital Outlay 5,430,257 4,012,232 (26.1%) 6,148,568 53.2% Other Expenditures 1,872,322 2,974,221 58.9% 1,306,494 (56.1%) Transfers to Other Funds 114,102,256 96,364,576 (15.5%) 140,622,745 45.9% Total Non-Personnel 842,106,682 895,309,811 6.3% 981,632,020 9.6% Total Operating Expenditures by
Category
1 1,143,330,837 1,217,983,722 6.5% 1,321,301,741 8.5%
1All years exclude other agency funds and debt service funds and internal service fund expenses not assigned to a department. 93 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | EXPENDITURES BY DEPARTMENT AND
FUND TYPE
General Fund
Internal
Service Fund
Special
Revenue
Funds
Enterprise
Funds
Capital
Improvement
Program
Funds Grand Total
Departments/Offices
Mayor and City Council Offices 1,124,281 1,124,281
City Attorney's Office 3,076,516 3,076,516
City Clerk's Office 1,947,261 1,947,261
City Auditor's Office 948,445 948,445
City Manager's Office 4,980,204 4,980,204
Community Development
Department
5,121,256 20,553,667 25,674,923
Electric Utility Department 719,003,859 351,697,203 1,070,701,062 Finance Department 18,192,257 575,000 18,767,257
Fire Department 62,616,032 7,115,977 427,374 70,159,383 Human Resources Department 4,208,090 4,208,090
Information Technology
Department
13,094,932 200,000 300,000 13,594,932
Library Department 10,835,937 10,835,937
Parks & Recreation Department 21,933,152 424,155 1,535,171 1,298,457 25,190,935 Police Department 85,598,562 995,232 94,760 86,688,554
Public Works Department 25,599,934 12,363,697 10,023,330 39,316,243 23,013,984 110,317,188 Water and Sewer Utility
Department
96,385,559 18,598,766 114,984,325
Non-Departmental 34,591,631 16,103,582 968,330 51,663,543 Total Expenditures
1 280,773,558 26,453,861 38,411,889 872,344,414 396,879,114 1,614,862,836 FISCAL YEAR 2023/24
1All years exclude other agency funds and debt service funds and internal service fund expenses not assigned to a department. 94 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | EXPENDITURES BY DEPARTMENT
Mayor and City Council
Offices
0.1%
City Attorney's Office
0.2%
City Clerk's Office
0.1%
City Auditor's Office
0.1%City Manager's Office
0.3%
Community
Development
Department
1.6%
Electric Utility
Department
66.3%
Finance Department
1.2%
Fire Department
4.3%
Human Resources
Department
0.3%
Information
Technology
Department
0.8%
Library Department
0.7%
Parks & Recreation
Department
1.5%
Police Department
5.4%
Public Works
Department
6.8%
Water and Sewer Utility
Department
7.1%
Non-Departmental
3.2%
FY 2023/24 Proposed
95 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | EXPENDITURES BY DEPARTMENT AND
FUND TYPE
General Fund
Internal
Service Fund
Special
Revenue
Funds
Enterprise
Funds
Capital
Improvement
Program
Funds
2 Grand Total
Departments/Offices
Mayor and City Council Offices 1,176,723 1,176,723
City Attorney's Office 3,205,702 3,205,702
City Clerk's Office 2,067,068 2,067,068
City Auditor's Office 985,489 985,489
City Manager's Office 5,175,582 5,175,582
Community Development
Department
5,392,464 19,916,832 25,309,296
Electric Utility Department 786,454,509 60,427,674 846,882,183 Finance Department 19,012,771 575,000 19,587,771
Fire Department 63,324,867 7,778,332 234,374 71,337,573 Human Resources Department 4,439,328 4,439,328
Information Technology
Department
12,956,944 200,000 300,000 13,456,944
Library Department 11,317,625 11,317,625
Parks & Recreation Department 22,809,299 431,394 1,591,088 5,588,401 30,420,182 Police Department 90,185,180 1,013,568 97,603 91,296,351 Public Works Department 26,728,107 14,725,090 8,687,065 40,785,274 18,529,588 109,455,124 Water and Sewer Utility
Department
120,920,630 21,789,295 142,709,925
Non-Departmental 31,638,763 18,284,444 941,422 50,864,629 Total Expenditures
1 287,458,968 28,695,602 37,111,226 968,035,945 108,385,754 1,429,687,495 FISCAL YEAR 2024/25
1All years exclude other agency funds and debt service funds and internal service fund expenses not assigned to a department. 2The FY 2024/25 Capital Improvement Program information reflects the third year of the five-year CIP plan from the FY 2022/23 an d 2023/24 Adopted Capital Improvement Program Budget. The proposed budget for FY 2024/25 and FY 2025/26 will be determined in next year’s capital budget cycle.
96 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | BUDGET SUMMARY BUDGET SUMMARY | EXPENDITURES BY DEPARTMENT
Mayor and City Council
Offices
0.1%
City Attorney's Office
0.2%
City Clerk's Office
0.1%
City Auditor's Office
0.1%
City Manager's Office
0.4%
Community
Development
Department
1.8%
Electric Utility
Department
59.2%
Finance Department
1.4%
Fire Department
5.0%
Human Resources
Department
0.3%
Information
Technology
Department
0.9%
Library Department
0.8%
Parks & Recreation
Department
2.0%
Police Department
6.4%
Public Works
Department
7.7%
Water and Sewer Utility
Department
10.0%
Non-Departmental
3.6%
FY 2024/25 Proposed
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98 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SUMMARY OF BUDGETED POSITIONS Summary of Budgeted Positions by Department/Office
FY 2021/22
Adopted
FY 2022/23
Adopted1
FY 2023/24
Proposed1
FY 2023/24
Change
FY 2024/25
Proposed1
Positions by Department/Office
Mayor and City Council Offices 9.00 9.00 10.00 1.00 10.00 City Attorney's Office 8.00 8.00 7.00 (1.00) 7.00
City Auditor’s Office 3.00 3.00 2.00 (1.00) 2.00
City Clerk's Office 6.00 7.00 7.00 0.00 7.00
City Manager's Office 12.50 12.50 11.30 (1.20) 11.30
Community Development Department2, 4 72.00 73.00 75.00 2.00 79.00 Electric Utility Department3 198.00 214.00 222.00 8.00 222.00 Finance Department 68.75 69.75 70.75 1.00 70.75
Fire Department4, 5 154.50 155.50 173.50 18.00 173.50
Human Resources Department 14.00 15.00 15.00 0.00 15.00 Information Technology Department 6.00 6.00 6.00 0.00 6.00 Library Department6 42.50 42.50 42.75 0.25 42.75
Parks and Recreation Department 77.75 77.75 77.75 0.00 77.75 Police Department
7 221.00 231.00 231.00 0.00 231.00
Department of Public Works4 122.50 123.50 119.50 (4.00) 119.50 Water and Sewer Utilities Department 73.00 73.00 73.00 0.00 73.00 Non-Departmental 6.50 6.50 5.70 (0.80) 5.70
Total Budgeted FTE by
Department/Office
1,095.00 1,127.00 1,149.25 22.25 1,153.25
1The positions above represent all funded positions. This excludes 30.5 positions that are frozen including: the remaining 22.50 positions frozen on March 9, 2021 (Agenda Item 5.0 – Report to Council 21-402), the 5.0 positions frozen on June 22, 2021 (Agenda Item 5. 0 – Report to Council 21-526), and the 3.0 positions recommended to be frozen in this Proposed Budget. 2The positions include 3.0 positions added during FY 2022/23 to support development related activity (Report to Council 22-1222) and
4.0 development-related positions recommended in FY 2024/25 as part of this Proposed Budget. 3This reflects 8.0 positions added during FY 2022/23 (3.0 posi tions added through Report to Council 22-1145 and 5.0 positions ad ded through Report to Council 22-1772).
4The position counts exclude 7.0 positions t hat were originally funded by Related but are frozen beginning FY 2023/24 based on discussions with Related including 1.0 Senior Inspector in the Community Development Department, 1.0 Deputy Fire Marshal II and 1.0 Fire Protection Engineer in the Fire Department, and 1.0 Associ ate Engineer, 1.0 Principal Engineer, 1.0 Senior Civil Engineer, and 1.0 Public Works Inspector in the Department of Public Works. 5The positions include 18.0 Firefighters added from the SAFER gr ant (Report to Council 23-170, February 7, 2023), including 12.0 that were originally frozen on March 9, 2021 (Agenda Item 5.0 – Report to Council 21-402) and an additional 6.0 positions. This also includes
2.0 development-related positions added during FY 2022/23 (Report to Council 22-1145). 6This reflects the increase of an Office Specialist from 0.50 FTE to 0.75 FTE. 7The FY 2022/23 Adopted position count includes positions that were restored with th e $1.7 million added to the Police Departmen t budget on June 21, 2021. This funding restored 10.0 FTE to the Police Department, approved by the City Council on January 11, 2 022 (Report to Council 22-1595).
99 FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SUMMARY OF BUDGETED POSITIONS Summary of Budgeted Positions by Fund
FY 2021/22
Adopted
FY 2022/23
Adopted
FY 2023/24
Proposed
FY 2023/24
Change
FY 2024/25
Proposed
Positions by Fund
General Fund (001)
1 718.46 732.51 723.52 (8.99) 723.52
Special Revenue Funds
Building Development Services (155) 43.00 43.46 47.71 4.25 51.71 City Affordable Housing (165) 1.20 1.20 1.95 0.75 1.95
Convention Center Maintenance District (026) 0.10 0.10 0.10 0.00 0.10 Downtown Parking Maintenance District (025) 0.50 0.50 0.50 0.00 0.50 Fire Development Services (158) 0.00 0.00 9.04 9.04 9.04 Fire Operating Grant Trust (178) 0.00 0.00 18.00 18.00 18.00 Housing and Urban Development (562) 3.30 3.30 2.95 (0.35) 2.95 Housing Authority (164) 0.65 0.65 0.65 0.00 0.65
Housing Successor (169) 1.55 1.55 1.25 (0.30) 1.25
Subtotal Special Revenue Funds 50.30 50.76 82.15 31.39 86.15 Enterprise Funds
Cemetery (093) 5.00 5.00 5.00 0.00 5.00
Convention Center Enterprise (860) 1.50 1.20 0.70 (0.50) 0.70 Electric (091, 191) 198.50 214.00 222.00 8.00 222.00
Recycled Water (097) 3.30 3.30 4.10 0.80 4.10
Sewer Utility (094) 22.45 22.45 22.85 0.40 22.85
Solid Waste (096) 6.65 6.65 7.10 0.45 7.10
Water Utility (092) 47.25 47.25 46.05 (1.20) 46.05
Subtotal Enterprise Funds 284.65 299.85 307.80 7.95 307.80 Internal Service Funds
Fleet Management (053) 14.75 14.75 14.65 (0.10) 14.65
Information Technology Services (045) 6.00 6.00 6.00 0.00 6.00 Public Works Capital Projects Management (044) 14.34 14.13 14.13 0.00 14.13 Subtotal Internal Service Funds 35.09 34.88 34.78 (0.10) 34.78 Capital Improvement Program Funds
Electric Utility Capital (591) 0.00 0.00 0.00 0.00 0.00 Related Santa Clara Developer (540) 6.50 9.00 1.00 (8.00) 1.00 Subtotal Capital Improvement Program Funds 6.50 9.00 1.00 (8.00) 1.00 Total Budgeted FTE by Fund 1,095.00 1,127.00 1,149.25 22.25 1,153.25 1The positions above represent all funded positions. This excludes 37.5 positions that are frozen including: the remaining 22.50 positions frozen on March 9, 2021 (Agenda Item 5.0 – Report to Council 21-402), the 5.0 positions frozen on June 22, 2021 (Agenda Item 5. 0 – Report to Council 21-526), and the 3.0 positions recommended to be frozen in this Proposed Budget. This also excludes 7.0 posit ions that were originally funded by Related but are frozen beginning FY 2023/24 based on discussions with Related including 1.0 Seni or Inspector in the Community Development Department, 1.0 Deputy Fire Marshal II and 1.0 Fire Protection Engineer in the Fire Department, and 1.0 Associate Engineer, 1.0 Principal Engineer, 1.0 Senior Civil Engineer, and 1.0 Public Works Inspector in the Department of Public Works.
100
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | SUMMARY OF BUDGETED POSITIONS Summary of Frozen Positions by Department
The list below reflects the frozen positions, as approved by City Council on March 9, 2021 as part of the COVID-19 Phase 1 Budg et Rebalancing and the 5.0 positions frozen on June 22,2021 (Agenda Item 5.0 – Report to Council 21-526). The below count excludes the
12.0 Firefighter positions that were frozen as part of the March 9, 2021 actions but were subsequently restored by the City Cou ncil on February 7, 2023 (Report to Council 23-170) as part of the Fire SAF ER grant. This list includes 7.0 positions that were originally funded by Related but are frozen beginning FY 2023/24 based on discussio ns with Related including 1.0 Senior Inspector in the Communit y Development Department, 1.0 Deputy Fire Marshal II and 1.0 Fire Protection Engineer in the Fire Department, and 1.0 Associate Engineer, 1.0 Principal Engineer, 1.0 Senior Civil Engineer, and 1.0 Public Works Inspector in the Department of Public Works. This list also includes the 3.0 positions recommended to be frozen in this Proposed Budget (1.0 Assistant City Attorney, 1.0 City Auditor, and 1.0 Assistant City Manager).
Department Classification FTE
City Attorney's Office Legal Office Specialist III 1.00 City Attorney's Office Assistant City Attorney 1.00
City Auditor's Office City Auditor 1.00
City Manager's Office Assistant City Manager 2.00
City Manager's Office Senior Management Analyst 1.00
Community Development Associate Planner 1.00
Community Development Office Specialist II 0.75
Community Development Senior Inspector 1.00
Finance Office Specialist II 1.00
Fire Deputy Fire Marshal II 1.00
Fire Fire Protection Engineer 1.00
Fire Quality Improvement Nurse 0.75
Human Resources Human Resources Division Manager 1.00
Parks and Recreation Grounds Maintenance Worker I 1.00
Parks and Recreation Grounds Maintenance Worker II 2.00 Parks and Recreation Office Specialist II 1.00
Police Police Officer 4.00
Police Police Sergeant 2.00
Public Works Automotive Technician III 1.00
Public Works Assistant Engineer (Civil) 1.00
Public Works Associate Engineer (Civil) 2.00
Public Works Principal Engineer 1.00
Public Works Public Works Inspector 1.00
Public Works Senior Engineer (Civil) 1.00
Public Works Street Maintenance Worker I 1.00
Public Works Street Maintenance Worker III 3.00
Public Works Street Maintenance Worker IV 1.00
Non-Departmental Deputy City Manager 1.00
Non-Departmental Office Specialist III 1.00
Total Positions Frozen 37.50
101
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102
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE
DEBT SERVICE
Overview
Under the authority of the City Manager, the City executes debt instruments, oversees the accounting and reporting of debt, administers debt proceeds, manages continuing disclosu re and debt compliance requirem ents, and makes debt service payments, while acting with prudence, diligence, and attention to prevailing economic conditions.
The City of Santa Clara uses debt financ ing as a tool to maintain its long-ter m financial stability by paying for certain expenditures over time. Debt financing is also a tool for m anaging cash flow when large, one-time outlays are required as in the case of constructing a new building or large-scale upgrades to infrastructure. This section provides a summary of the City's debt service for the ten-year forecast period. Included is the Computation of Legal Debt Margin, which calculates the City's debt limit as defined by the City Charter. Also included is a debt service schedule representing the currently outstanding debt of the City. The City does not currently have any outstanding general obligation debt.
Debt Policies
The Santa Clara City Charter, Section 1309, limits the allo wable bonded indebtedness of the City at 15% of the total assessed valuation of property within the City, exclusive of revenue bonds or any indebtedness that has been or may be incurred for the purposes of acquiring, constructing, extending, or maintaining municipally owned utilities, for which purposes a further indebtedness may be incurred by the issuance of bond s, subject only to the provisi ons of the State constitution and the City Charter.
Section 1321 of the City Charter further provides for the issuance of revenue bonds when authorized at an election as provided therein. The City Charter also gives City Council the power to iss ue revenue bonds to finance the generation, production, transmission and distribution of electric energy, including the acquisit ion and/or construction of lands and facilities therefor, without authorization at an election.
The City's Debt Management Policy provides guidance for the issuance of bonds and other forms of indebtedness to finance land acquisition, construction, equipment, and other capital requ irements of the City. While the issuance of debt is an appropriate method of financing capital projects and major equipment acquisitions, such issuance shall be carefully monitored.
The issuance of debt shall be closely aligned with the cash fl ow requirements of the projects being financed. Within the limitations of the City Charter, determining the amount of indebtedness the City can afford begins by assessing the sufficiency of future revenues. The amount of debt i ssued is based on the requirements of the approved Capital Improvement Program, subject to the condition that sufficient re venues are projected to be ava ilable to pay debt service.
Factors such as debt service coverage requirements outlined in the bond indentures, the impact on the citizens (tax rates), and any impact on the bond ratings will be carefully considered. Different factors are considered for each type of credit. For example, electric, water or sewer bonds will take into consideration the impact on customer utility rates. Other factors such as providing debt capacity for future programs and existing and forecasted fund balan ces, including reserves, will also be taken into consideration.
The City believes that debt is an equitable means of financing projects and represents an important source of meeting fiscal responsibilities. The City obt ains and maintains long-term d ebt for large capital improv ement projects. The Finance Department manages the City’s debt with prudence, diligen ce, and with attention to prev ailing economic conditions and applicable laws. It manages issuance of debt, administers debt proceeds, prepares ongoing disclosure, handles debt and tax compliance, and makes debt service payments. City departments with debt-financed capital programs coordinate with the Finance Department in implementing and handling debt related transactions. Semiannual updates are prepared by the Finance Department on outstanding debt for the City of Santa Clara, its Agencies and Corporations. This report is presented as a standard management practice that provides a valuable over view of the current status of the City’s long-term debt 103
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE obligations. The current City Council appr oved debt policy can be found online at:
http://santaclaraca.gov/home/showdocument?id=63748.
Long-Term Debt Planning
The City employs a comprehensive multi-year, long-term capital improvement planning program that is updated every two years. Debt management is a major component of the financial planning model which incorporates projected financing needs for infrastructure development that is consistent with the City’s growth, while at the same time measuring and assessing the cost and timing of any debt issuance.
Credit Rating
The City seeks to obtain and maintain the highest possible credit ratings for all categories of short- and long-term debt. The City’s bonds are rated favorably by major bond rating agencies, Fitch and Standard and Poor's (S&P Global Ratings). S&P Global Ratings assigned City of Santa Clara its 'AA+' issuer credit rating (ICR) in June 2022 and affirmed City’s Certificates of Participation 'AA' long-term rating in May 2022. The City's Electric Revenue Bonds are rated 'AA-' by Fitch and its 'A+' rating was affirmed by S&P in November 2022. Maintaining high bond ratings has resulted in a broader market for the City’s bonds and lower interest costs to the City.
Public Facilities Financing Corporation
The City of Santa Clara Public Facilities Financing Corporation (PFFC) was form ed in 1997 for the purpose of issuing Certificates of Participat ion (COPs) to provide financing fo r the construction of major City facilities. Members of the City Council are also members of the PFFC Board. Debt service on COPs is secured by lease payments made by the City's General Fund to the PFFC for use of t he constructed facilities for public purposes. In accordance with lease agreements, the PFFC assigns lease payments received from the City to the trustee for payment to the certificate holders.
Long-Term Debt Obligations
Certificates of Participation (COPs) are a debt instrument evidencing a pro-rata share in a specific pledged revenue source, usually lease payments. These lease payments are typically secured by an installment sale or leaseback agreement.
Revenues are pledged to pay lease payments, and such lease payments are used to pay debt service on the COPs. The lessor typically assigns the lease and the payment to a trustee, which distributes the payments to certificate holders. These obligations do not constitute indebtedness under the State constitutional debt limitation and are not subject to voter approval.
Lease Revenue Bonds are a lease obligation secured by a leaseback ar rangement with a public entity, where general operating revenues are pledged to pay the lease payments, and in turn are used to pay debt service on the debt. These obligations do not constitute indebtedness under the State constitutional debt limitation and are not subject to voter approval.
In connection with COPs and Lease Revenue Bonds, payments to be made under valid leases are payable only in the year in which use and occupancy of the leased property is av ailable, and lease payments ma y not be accelerated. Lease financing requires the fair market rental value of the leased property to be equal to or greater than the required debt service or lease payment schedule. The governmental lessee is obligated to place in its annual budget the rentals that are due and payable during each fiscal year the lessee has use of the leased property.
Installment Sale Agreements are debt obligations secured by the assignm ent of installment payments required to be paid by the City from certain pledged revenue s, such as revenues from an enterpris e, in an amount sufficient to pay the installment payments, including interest. The City’s outstanding Installment Sale Agreements are payable solely from the City’s Sewer Utility and is not secured by any pledge of ad valorem taxes or Gene ral Fund revenues of the City. These obligations do not constitute indebtedness under the State constitutional debt limitation and are not subject to voter approval.
104
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE Revenue Bonds are obligations payable from revenues generated by an enterprise, such as electric, water, or wastewater utilities. The City's outstanding utility Reve nue Bonds are payable solely from the Ci ty's Electric Utility and Sewer Utility Enterprise Funds and are not secured by any pledge of ad valorem taxes or General Fund revenues of the City.
Summary of FY 2023/24 and 2024/25 Debt Service
The Biennial Operating Budget Operating Budget includes $59,723,048 in debt service for FY 2023/24 and $40,647,934 in debt service for FY 2024/25. A ten-year debt service schedule is shown herein.
2010 City of Santa Clara Lease Agreement (Police Administration Building Project)
On July 13, 2010, the City entered into an agreement with the PFFC in order to provide funds to refund outstanding 1997 Certificates of Participation, which were originally issued to provide financing to build a new Police Administration building.
The PFFC entered into a separate agreement with the assi gnee, Bank of America, N.A. Debt service on the Lease Agreement is secured by lease payments made by the City to the assignee for use of the Police Administration site. On March 22, 2012, Bank of America sold and transferred the Lease Agreement to Capital One Public Financing, LLC with no change to the terms, covenants, or c onditions of the contract or the pay ment schedule. Lease payments were due semiannually beginning February 1, 2011 through February 1, 2022 with a coupon rate of 3.65%. This debt was paid in full at the end of FY 2021/22.
2013 Refunding Certificates of Participation (Central Park Library Project)
On March 28, 2013, the PFFC issued $18.54 million of Refunding Certificates of Participation (2013 COPs) to provide funds to refund outstanding 2002A Certificates of Participation, which were originally issued to provide financing to build a new Central Park Library. The 2013 COPs mature annually begi nning February 1, 2014 through February 1, 2032 and bear coupon rates ranging from 2.00% to 3.75%. Debt Service is secured by lease payments to be made by the City to the PFFC for use of the library site. The PFFC assigns the lease payments to the certificate owners.
Installment Sale Agreement, Series 2016 (Trimble Road Sewer Project)
On March 8, 2016, the City entered into a $12.0 million Installment Sale Agreement with the PFFC in order to provide funds for the Trimble Road Trunk Sanitary Sewer Improvement Project. The PFFC entered into a separate Assignment Agreement with DNT Asset Trust, a wholly owned subsidiary of JPMorgan Chase National Association (the “Agreement”), to assign its rights under the Installment Sale Agreement to DNT Asset Trust. The Agreement has an interest rate of 2.14% and semiannual payments beginning August 1, 2016 through Febr uary 1, 2031. Installment paym ents on the Agreement are secured by a pledge of net revenues of the Wastewater System.
Installment Sale Agreement, Series 2020 (Regional Wastewater Facility)
The City co-owns the Regional Wastewater Facility with the City of San José. The facilit y is being rebuilt, with the City’s portion of the costs budgeted as a separate project in the current Capital Improvement Program budget. The Water and Sewer Utilities Department oversees it. On June 11, 2020, the City entered into an Installment Sale Agreement (the “ISA”) with the PFFC to provide funds for the San Jose/Santa Clara Regional Wastewater Facility Project (the “Project”). The PFFC entered into a separate Assignment Agreement with JPMorgan Chase Bank, N.A. (the “Assignment Agreement”), to assign its rights under the ISA to JP Morgan Chase Bank, N.A. The ISA in the amount of $50.0 million carries a variable rate of interest equal to 80% of Term SOFR (Secured Overnight Financing Rate) plus SOFR adjustment of 0.10%, and plus 0.95% per annum.
The City may draw on the Installment Sale Agreement as necessary with an initial $20.0 million drawn on the date of closing.
Interest is due each January 1 and July 1, commencing January 1, 2021. Principal on outst anding advances is due on or before July 1, 2024. In addition, the PFFC shall pay an undrawn fee on any amount not yet drawn at a rate of 0.325% per annum on each interest payment date. Installment payments on the Agreement are secured by a pledge of net revenues 105
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE of the Wastewater System on a subordi nate basis to the Trimble Road Installment Payments. No additional draw-downs were made nor planned.
Electric Revenue Refunding Bonds, Series 2013A
On April 24, 2013, Silicon Va lley Power (SVP), City’s Electric Departmen t, issued $64.38 million of Electric Revenue Refunding Bonds, Series 2013A (Electric 2013A Bonds), to provide funds, together with other available moneys, to refinance outstanding Electric 2003A Bonds. The Electric 2013A Bonds mature annually beginning on July 1, 2014 through July 1, 2028 and bear coupon rates ranging from 3.00% to 5.00%. Debt service on the Electric 2013A Bonds is secured by a pledge of net revenues of the Electric Utility Enterprise Fund.
The Electric 2013A Bonds maturing July 1, 2023 through July 1, 2028 were refunded on April 10, 2020 by the Subordinate Electric Revenue Refunding Bonds, Series 2020-2 described below. The refunding of a portion of the Electric 2013A Bonds resulted in overall savings of $1,706,384.
Electric Revenue Refunding Bonds, Series 2018A
On December 18, 2018, SVP issued $48.80 million of Electr ic Revenue Refunding Bonds, Se ries 2018A (Electric 2018A Bonds) to refinance $54.58 million outstanding principal amount of Variable Rate Demand Electric Revenue Bonds, Series 2008B and terminate a related interest rate swap transaction. The Electric 2018A Bonds mature annually beginning on July 1, 2019 through July 1, 2027 and bear coupon rates of 5.00%. Debt service on the Electric 2018A Bonds is secured by a pledge of net revenues of the Electric Utility Enterprise Fund.
Subordinate Electric Revenue Refunding Bonds, Series 2020-1, 2020-2, and 2020-3
Series 2020-1 Bonds
On April 10, 2020, SVP issued $52.985 million of Subordinate Electric Revenue Refu nding Bonds, Series 2020-1 (Electric 2020-1 Bonds) to refinance $54.83 million outstanding principal amount of Electric Revenue Refunding Bonds, Series 2011 A. The Electric 2020-1 Bonds bear 1.74% coupon rates, ma ture annually beginning on July 1, 2028 through July 1, 2032, and were sold at an All-In True Interest Cost of 1.43%.
On April 2, 2021, the Electric 2020-1 Bonds were converted to tax-exempt basis, which now bear 1.36% coupon rates. Debt service on the Electric 2020-1 Bonds is secured by a pledge of Available Electric Revenues of SVP on a basis subordinate to outstanding Senior Electric Revenue Bonds, if any.
Series 2020-2 Bonds
On April 10, 2020, SVP issued $34.315 million of Subordinate Electric Revenue Refu nding Bonds, Series 2020-2 (Electric 2020-2 Bonds) to refinance $30.725 million of outstanding Electric Revenue Refunding Bonds, Series 2013 A. The Electric 2020-2 Bonds bear 1.31% coupon rates, mature annually beginning on July 1, 2023 through July 1, 2028, and were sold at an All-In True Interest cost of 1.21%.
On December 28, 2022, the Electric 2020-2 Bonds were co nverted to tax-exempt basis, which now bear 1.02% coupon rates. Debt service on the Electric 2020-2 Bonds is secured by a pledge of Available Electric Revenues of SVP on a basis subordinate to outstanding Senior Electric Revenue Bonds, if any.
Series 2020-3 Bonds
On April 10, 2020, SVP issued $16.72 million of Subordinate Electric Revenue Refunding Bo nds, Series 2020-3 (Electric 2020-3 Bonds) to refinance $19.413 million outstanding principal amount of Subordinated Electric Revenue Bonds, Series 2014. The Electric 2020-3 Bonds bear 0.58% coupon rates, mature annually beginning on July 1, 2020 through July 1, 2024, and were sold at an All-In True Inte rest Cost of 0.70%. Debt service on the Electric 2020-3 Bonds is secured by a pledge of Available Electric Revenues of SVP on a basis subordinate to outstanding Senior Electric Revenue Bonds, if any.
106
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE Regional Wastewater Facility Debt Planned
It is the Water and Sewer Utilitie s Department’s intention to issue debt in FY 2023/24, in the amount of $30.0 million, to refinance Series 2020 (Regional Wastewater Facility) Installment Sale Agreement of $20.0 million principal outstanding, as described above, and borrow an additional $10.0 million of new debt for the final phase of this capital project. This new issuance and preliminary debt service amounts are reflected in the City’s Debt Service Schedule.
Electric Debt Planned
Silicon Valley Power (SVP), City’s Electric Department, intends to issue new de bt in FY 2023/24, in the amount of $305.3 million to finance several of its capital projects in the System Expansion Plan. These projects include Kifer Receiving Station (KRS) rebuild, Scott Receiving Station (SRS) rebuild, Northern Receiving Station (NRS) transformer and breaker upgrades, and NRS/KRS 115kV transmission line construction. KRS was constructed in 1975 and the project will expand capacity to 900MVA from 372 MVA plus other associated work. SRS was constructed in 1968 and the project will also expand capacity to 900MVA from 372 MVA plus other associated work. NRS wa s constructed in 2004 and the project includes installing additional transformers an d reconfiguring/expanding associated ai r insulted switchgear to incr ease station reliability and capacity. The NRS/KRS new transmission line construction will help balance and redistribute energy between the receiving stations. This new issuance and preliminary debt service amounts are reflected in the City’s Debt Service Schedule.
107
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE Fiscal Year Net Local State Net Net Total % of Growth Total Direct Ending Secured Assessed Unsecured Assessed Assessed of Assessed Tax June 30 Roll
(1)
Valuation Roll Valuation Valuation Valuation Valuation Rate 2012 / 13 20,475,348 4,641 4,702,675 25,182,664 25,295,792 99.55% 6.19% 1.16% 2013 / 14 22,216,962 4,641 4,680,536 26,902,139 27,012,697 99.59% 6.83% 1.14% 2014 / 15 24,294,056 4,183 4,352,204 28,650,443 28,758,679 99.62% 6.50% 1.13% 2015 / 16 27,659,960 4,183 5,157,346 32,821,489 32,927,777 99.68% 14.56% 1.16% 2016 / 17 30,672,596 4,183 5,856,885 36,533,664 36,638,297 99.71% 11.31% 1.15% 2017 / 18 33,449,607 3,896 6,553,560 40,007,063 40,109,539 99.74% 9.51% 1.16% 2018 / 19 36,596,483 354 7,266,592 43,863,429 43,964,914 99.77% 9.64% 1.13% 2019 / 20 38,502,828 870 7,629,244 46,132,942 46,232,453 99.78% 5.17% 1.20% 2020 / 21 42,047,766 870 7,972,493 50,021,129 50,118,954 99.80% 8.43% 1.18% 2021 / 22 44,162,052 870 8,007,077 52,169,999 52,264,729 99.82% 4.30% 1.19% Note:
(1) Net of Home Owner Property Tax Relief.
Source: County of Santa Clara, Department of Finance
CITY OF SANTA CLARA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years
(In Thousands)
108
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE Fiscal Year Net
Ending Assessed Debt Limit- 15% of Debt Applicable Legal Debt June 30 Valuation Assessed Valuation
(1)
to Limit Margin
2012 / 13 25,182,664 3,777,400 - 3,777,400 2013 / 14 26,902,139 4,035,321 - 4,035,321 2014 / 15 28,650,443 4,297,567 - 4,297,567 2015 / 16 32,821,489 4,923,223 - 4,923,223 2016 / 17 36,533,664 5,480,050 - 5,480,050 2017 / 18 40,007,063 6,001,059 - 6,001,059 2018 / 19 43,863,429 6,579,514 - 6,579,514 2019 / 20 46,132,942 6,934,868 - 6,934,868 2020 / 21 50,021,129 7,503,169 - 7,503,169 2021 / 22 52,169,999 7,825,500 - 7,825,500 Note:
Sources: County of Santa Clara, Department of Finance and City of Santa Clara (1) Section 1309 of the City Charter of the City states: "Bonded Debt Limit. The bonded indebtedness of the City may not in the aggregate exceed the sum of fifteen percent (15%) of the total assessed valuation of property within the City, exclusive of revenue bonds or any indebtedness that has been or may hereafter be incurred for the purposes of acquiring, constructing, extending, or maintaining municipally owned utilities for which purposes a further indebtedness may be incurred by the issuance of bonds, subject only to the provisions of the State Constitution and this Charter."
City of Santa Clara
Legal Debt Margin Information
Last Ten Fiscal Years
(In Thousands)
109
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE
DEBT SERVICE SCHEDULE
Actual Current Proposed Proposed Plan Plan Plan Plan Plan Plan Plan Plan Bond Issue 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Current Debt Issued
Lease Financing:
2010 Lease Financing
(Police Administration Building Project)
Principal 1,065,000 0 0 0 0 0 0 0 0 0 0 0
Interest 29,164 0 0 0 0 0 0 0 0 0 0 0
1,094,164 0 0 0 0 0 0 0 0 0 0 0
Total Lease Financing 1,094,164 0 0 0 0 0 0 0 0 0 0 0
Certificates of Participation:
2013 Refunding COPs
(Central Park Library Project)
Principal 940,000 980,000 1,030,000 1,085,000 1,120,000 1,150,000 1,195,000 1,235,000 1,280,000 1,325,000 665,000 0 Interest 467,275 420,275 371,275 319,775 285,869 249,469 209,219 167,394 122,625 74,625 24,937 0 Trustee 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 0 Arbitrage Computation 0 1,900 0 0 0 0 1,900 0 0 0 0 0
1,408,440 1,403,340 1,402,440 1,405,940 1,407,034 1,400,634 1,407,284 1,403,559 1,403,790 1,400,790 691,102 0 Total Certificates of
Participation
1,408,440 1,403,340 1,402,440 1,405,940 1,407,034 1,400,634 1,407,284 1,403,559 1,403,790 1,400,790 691,102 0 Installment Sale A greem ent:
2016 Sanitary Sewer Improvements (Trimble Road Sewer Project) Principal 761,763 778,152 794,893 811,995 829,465 847,310 865,540 884,161 903,183 922,615 0 0 Interest 175,687 159,298 142,556 125,454 107,985 90,139 71,910 53,288 34,266 14,834 0 0 Arbitrage Computation 0 0 0 0 2,150 0 0 0 0 0 0 0
937,450 937,450 937,449 937,449 939,600 937,449 937,450 937,449 937,449 937,449 0 0 110
City of
Santa Clara
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE
DEBT SERVICE SCHEDULE
Actual Current Proposed Proposed Plan Plan Plan Plan Plan Plan Plan Plan Bond Issue 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Current Debt Issued
2020 Sanitary Sewer Improvements
P r in c ip a l 0 0 2 0 , 00 0 , 00 0 0 00000000
Int er e s t 1 0 4, 64 4 4 6 0 , 2 5 0 1 , 00 0 , 00 0 0 00000000 Ar b it r ag e C o m p u t a t i on 9 8 , 85 4 9 8 , 8 5 4 9 8 , 85 4 0 00000000 2 0 3, 49 9 5 5 9 , 1 0 4 2 1, 09 8 , 85 4 0 00000000
Total Installment Sale
Agreement
1,140,948 1,496,554 22,036,303 937,449 939,600 937,449 937,450 937,449 937,449 937,449 0 0 Revenue Bonds:
Electric Revenue Refunding Bonds, Series 2013A
P r in c ip a l 4 , 3 2 0 , 00 0 4 , 5 4 5 , 0 00 0 0 00000000 Int er e s t 3 3 5, 25 0 1 1 3 , 6 2 5 0 0 00000000
T r u s t ee 0 1 , 9 5 5 0 0 00000000
Ar b it r ag e C o m p u t a t i on 0 1 , 9 0 0 0 0 00000000 4 , 6 5 5, 25 0 4 , 6 6 2 , 4 80 0 0 00000000
Electric Revenue Refunding Bonds, Series 2018A
P r in c ip a l 4 , 7 8 5 , 00 0 5 , 1 1 0 , 0 00 5 , 44 0 , 00 0 5 , 7 9 5 , 0 0 0 6 , 00 5 , 0 00 6 , 3 2 0 , 0 00 6 , 6 55 , 0 0000000 Int er e s t 1 , 8 8 5, 87 5 1 , 6 3 8 , 5 00 1 , 37 4 , 75 0 1 , 0 9 3 , 8 7 5 7 9 8 , 8 75 4 9 0 , 7 50 1 6 6 , 3 7 500000 T r u s t ee 2, 25 0 2 , 3 5 0 0 0 00000000
Ar b it r ag e C o m p u t a t i on 0 0 0 0 00000000
6 , 6 7 3, 12 5 6 , 7 5 0 , 8 50 6 , 81 4 , 75 0 6 , 8 8 8 , 8 7 5 6 , 80 3 , 8 75 6 , 8 1 0 , 7 50 6 , 8 21 , 3 7500000 Electric Revenue Refunding Bonds, Series 2020-1
Principal 0 0 0 0 0 0 0 6,555,000 12,745,000 12,910,000 13,165,000 7,610,000 Interest 538,445 720,596 720,596 720,596 720,596 720,596 720,596 676,022 544,782 370,328 193,018 51,748 Trustee 1,250 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Ar b it r ag e C o m p u t a t i on 0 0 0 0 00000000
539,695 723,096 723,096 723,096 723,096 723,096 723,096 7,233,522 13,292,282 13,282,828 13,360,518 7,664,248
111
City of
Santa Clara
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE
DEBT SERVICE SCHEDULE
Actual Current Proposed Proposed Plan Plan Plan Plan Plan Plan Plan Plan Bond Issue 2021/22 2022/23 20 23/24 2024/25 2025/26 2026/27 2027/28 202 8/29 2029/30 2030/31 2031/32 2032/33 Current Debt Issued
Revenue Bonds:
Electric Revenue Refunding Bonds, Series 2020-2
Principal 0 0 5,755,000 5,695,000 5,910,000 5,975,000 6,050,000 4,930,00 00000 Interest 449,527 445,780 323,579 262,268 203,082 142,469 81,141 25,14 30000 Trustee 1,250 2 ,500 2 ,500 2 ,000 2 ,000 2 ,000 2 ,000 2 ,0000000 Arbitrage Computation 0 1 ,3500000000000
450,777 449,630 6,081,079 5,959,268 6,115,082 6,119,469 6,133,141 4,957,14 30000 Electric Revenue Refunding Bonds, Series 2020-3
Principal 3,900,000 3 ,925,000 3 ,945,000 3 ,970,00000000000 Interest 79,982 5 7,290 3 4,467 1 1,51300000000
Trustee 1,250 2 ,500 1 ,250 1 ,25000000000
3,981,232 3 ,984,790 3 ,980,717 3 ,982,76300000000
Total Electric Revenue Bonds 16,300,079 16,570,846 17,599,642 17,554,002 13,642,053 13,653,315 13,677,61 2 12,190,665 13,292,282 13, 282,828 13,360,518 7,664,248 19,943,631 19,470,740 41,038,385 19,897,391 15,988,687 15,991,398 16,022,34 6 14,531,673 15,633,521 15, 621,067 14,051,620 7,664,248 Debt to be Issued
2023 Regional Wastewater Facility
Principal 0 0 1,100,000 700,000 730,000 760,000 795,000 830,000 870,000 910,000 950,000 990,000 Interest 0 0 905,250 1,308,375 1,276,875 1,244,025 1,209,825 1,174,050 1,136,700 1,097,550 1,056,600 1,013,850 0 0 2,005,250 2,008,375 2,006,875 2, 004,025 2,004,825 2,004,050 2,006,7 00 2,007,550 2,006,600 2,003,850 Electric Bonds
Principal 0 0 4,452,763 5,116,097 5, 346,322 5,586,907 5,838,317 6,101,042 6,375,588 6,66 2,490 6,962,302 7,275,606 Interest 0 0 12,224,250 13,623,671 13,393,446 13,152,862 12,901,451 12,638,727 12,364,180 12,077,279 11,777,466 11,464,163 Trustee 0 0 2,400 2,400 2,400 2,400 2,400
0 0 16,679,413 18,742,168 18,742,168 18,742,169 18,742,168 18,739, 769 18,739,768 18,739, 769 18,739,768 18,739,769 0 0 18,684,663 20,750,543 20,749,043 20,746,194 20,746,993 20,743,819 20,746,468 20,747,319 20,746,368 20,743,619 19,943,631 19,470,740 59,723,048 40,647,934 36,737,730 36,737,592 36,769,33 9 35,275,492 36,379,989 36,368,386 34,797,988 28,407,867 Total Current Debt Issued
Total Debt to be Issued
Total Current Debt Service
and Debt to be Issued
112
City of
Santa Clara
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE
DEBT SERVICE FUNDS
Under the authority of the City Manager, the City executes debt instruments, oversees the accounting and reporting of debt, administers debt proceeds, manages continuing disc losure and debt compliance requirements, and makes debt service payments, while acting with prudence, diligence, and attention to prevailing economic conditions.
The City of Santa Clara uses debt financing as a tool to maintain its long-term financial stability by paying for certain expenditures over time. Debt financing is also a tool for managing cash flow when large, one-time outlays are required as in the case of constructing a new building or large-scale upgrades to infrastructure.
Public Facilities Financing Corporation (431)
The City of Santa Clara Public Facilitie s Financing Corporation (PFFC) was formed in 1997 for the purpose of issuing Certificates of Participation (COPs) to provide financing for the construction of major City facilities. Members of the City Council are also members of the PFFC Board. Debt service on COPs is secured by lease payments made by the City's General Fund to the PFFC for use of the constructed facilities for public purposes. In accordance with lease agreements, the PFFC assigns lease payments received from the City to the trustee for payment to the certificate holders.
Electric Utility Debt Service Fund (491)
The Electric Utility Debt Service Fund is used to pay principal, interest, and related service charges on obligations resulting from the issuance of debt by the Electric Utility. Bond proceeds are used to pay for capital costs associated with the Electric Utilities’ generation, transmission and distribution facilities. Debt service is payable from Adjusted Net Revenues of the Electric Utility.
Sewer Utility Debt Service Fund (494)
The Sewer Utility Debt Service Fund is used to pay principal, interest, and related service char ges on obligations resulting from the issuance of debt by the Sewer Utility. Bond proceeds are used to pay for capital improvements associated with the Sewer System, including the Trimble Road Trunk Sanitary Sewer Improvement Project and the San José-Santa Clara Regional Wastewater Facility Project. Debt service is payable from Net Revenues of the Sewer Utility.
The following section details the City of Santa Clara’s Debt Service Funds’ Statements of Sources and Uses and the Proposed Budget for Fiscal Year 2023/24 and Fiscal Year 2024/25. 113
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE DEBT SERVICE FUNDS | ELECTRIC UTILITY DEBT
SERVICE FUND (491)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Bond Reserve 3,632,533 3,632,533 3,632,533 3,632,533 3,632,533 Reserve for Debt Service 9,817,239 10,158,819 10,158,819 10,138,240 10,138,240 Total Beginning Fund Balance 13,449,772 13,791,352 13,791,352 13,770,773 13,770,773 Revenue
Bond Proceeds 0 0 0 305,250,000 0
Interest 337,6750000
Total Revenue 337,675 0 0 305,250,000 0
Transfers From
Electric Utility Fund 16,305,884 16,548,917 16,548,917 34,279,056 36,296,170 Total Transfers From 16,305,884 16,548,917 16,548,917 34,279,056 36,296,170 Total Source of Funds 30,093,331 30,340,269 30,340,269 353,299,829 50,066,943 Expenditures
Debt Service 16,294,079 16,535,212 16,555,791 34,270,406 36,288,020 Administrative Costs 7,900 13,705 13,705 8,650 8,150 Total Expenditures 16,301,979 16,548,917 16,569,496 34,279,056 36,296,170 Transfers To
Electric Utility Capital Fund 0 0 0 305,250,000 0
Total Transfers To 0 0 0 305,250,000 0
Ending Fund Balance
Bond Reserve 3,632,533 3,632,533 3,632,533 3,632,533 3,632,533 Reserve for Debt Service 10,158,819 10,158,819 10,138,240 10,138,240 10,138,240 Total Ending Fund Balance 13,791,352 13,791,352 13,770,773 13,770,773 13,770,773 Total Use of Funds 30,093,331 30,340,269 30,340,269 353,299,829 50,066,943 114
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE DEBT SERVICE FUNDS | PUBLIC FACILITIES FINANCING
CORPORATION FUND (431)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Debt Reserve 707,202 707,202 707,202 707,202 707,202 Unrestricted 15,881 15,339 15,339 15,339 15,839 Total Beginning Fund Balance 723,083 722,541 722,541 722,541 723,041 Revenue
Interest 623 1,000 1,000 500 500 Total Revenue 623 1,000 1,000 500 500 Transfers From
General Fund 2,501,439 1,402,275 1,402,275 1,402,440 1,405,940 Total Transfers From 2,501,439 1,402,275 1,402,275 1,402,440 1,405,940 Total Source of Funds 3,225,145 2,125,816 2,125,816 2,125,481 2,129,481 Expenditures
Debt Service 2,501,439 1,400,275 1,400,275 1,401,275 1,404,775 Administrative Costs 1,165 1,100 1,100 1,165 1,165 Arbitrage Computation 0 1,900 1,900 0 0
Total Expenditures 2,502,604 1,403,275 1,403,275 1,402,440 1,405,940 Ending Fund Balance
Debt Reserve 707,202 707,202 707,202 707,202 707,202 Unrestricted 15,339 15,339 15,339 15,839 16,339 Total Ending Fund Balance 722,541 722,541 722,541 723,041 723,541 Total Use of Funds 3,225,145 2,125,816 2,1 25,816 2,125,481 2,129,481
115
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | DEBT SERVICE DEBT SERVICE FUNDS | SEWER UTILITY DEBT SERVICE
FUND (494)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Debt Reserve 4,916,274 5,664,361 5,664,361 6,005,257 1,963,704 Total Beginning Fund Balance 4,916,274 5,664,361 5,664,361 6,005,257 1,963,704 Revenue
Debt Proceeds 0 0 0 30,000,000 0
Total Revenue 0 0 0 30,000,000 0
Transfers From
Sewer Utility Fund 1, 889,035 1,837,450 1,837,450 0 1,050,000 Total Transfers From 1,889,035 1,837,450 1,837,450 0 1,050,000 Total Source of Funds 6,805,309 7,501,811 7,501,811 36,005,257 3,013,704 Expenditures
Debt Service 1,042,094 1,837,450 1,496,554 23,942,699 2,945,824 Administrative Costs 98,854 0 0 98,854 0
Total Expenditures 1,140,948 1,837,450 1,496,554 24,041,553 2,945,824 Transfers To
Sewer Utility Capital Fund 0 0 0 10, 000,000 0
Total Transfers To 0 0 0 10,000,000 0
Ending Fund Balance
Debt Reserve 5,664,361 5,664,361 6,005,257 1,963,704 67,880 Total Ending Fund Balance 5,664,361 5,664,361 6,005,257 1,963,704 67,880 Total Use of Funds 6,805,309 7,501,811 7,501,811 36,005,257 3,013,704
116
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
Ten-Year
General Fund
Financial Forecast
2024 - 2034
March 2023
117
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
PURPOSE
The Ten-Year General Financial Forecast (Forecast) provides policy makers and the public an updated assessment of the City’s fiscal health. The For ecast includes projections of ongoing General Fund revenues and expenditures for a ten-year period beyond the adopted biennial budget.
The Forecast serves as a strategic planning tool to assist the City Council, staff, and the public with decision-making as they work to adopt the budget and consider long-term financial strategies for the City.
The Forecast also identifies known risk factors and vulnerabilities, and it provides a foundation for evaluating priorities and understanding trade-offs moving forward.
GENERAL FUND OVERVIEW
The Forecast compares anticipated General Fund revenues with base expenditures, which include the projected costs of providing the current level of service. Individual projections of revenues and expenditures are developed based on trend analyses, input from available economic reports, consultant recommendations, departments, updated salary and benefit information, and non-personnel costs. The most current information available is incorporated into the Forecast and refined on a moving forward basis.
This Forecast shows a General Fund shortfall of $8.0 million in FY 2023/24 and $8.9 million in FY 2024/25, with the projected deficit reaching a high of $15.0 million in FY 2028/29 and a low of $7.5 million in FY 2033/34. The projected shortfall of $8.0 million in FY 2023/24 is equivalent to 2.8% of forecasted expenditures.
FY 2024-2034 General Fund Ten-Year Financial Forecast
($ in millions)
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Projected
Revenues $272.6 $284.9 $297.3 $309.0 $321.2 $333.3 $346.5 $359.7 $373.5 $387.8 $402.7 Projected
Expenditures $280.6 $293.8 $308.2 $320.8 $332.7 $348.3 $360.5 $373.9 $383.3 $396.4 $410.2 Cumulative
(Shortfall)/
Surplus
($8.0) ($8.9) ($10.9) ($11.8) ($11.5) ($15.0) ($14.0) ($14.2) ($9.8) ($8.6) ($7.5) % of
Expenses 2.8% 3.0% 3.5% 3.7% 3.5% 4.3% 3.9% 3.8% 2.5% 2.2% 1.8%
Note: The Forecast does not include the cost to address unmet/deferred infrastructure needs, the cost to fully fund public safety equipment replacement, additional contributions to reserves, one-time funding sources, and one-time expenditure needs.
118
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
The Forecast compares ongoing revenues and expenditures. It does not factor in one-time funding sources or items funded on a pay-as-you-go method with one-time sources. To the extent the biennial budget is balanced using one-time funding, such as reserves, that portion of the ongoing deficit would remain to be addressed in a future budget.
The City also has a significant backlog of unmet and deferred capital infrastructure needs that are not factored into this forecast. Historically, the City has funded many capital infrastructure and equipment needs with one-time funds on a pay-as-you-go basis. The use of one-time funds as the funding mechanism for capital improvements and various equipment that rely on the General Fund creates challenges. Staff will continue to evaluate potential options to create capacity to address those funding needs.
The forecast also does not include additional contributions to Reserves (Budget Stabilization Reserve, Capital Projects Reserve, Pension Reserve). Allocations to those reserves typically occur at the close of the fiscal year from excess revenues and expenditure savings. The forecast also does not factor in the additional revenue and associated expenses from future development projects given the uncertainty of those project schedules.
In addition to the elements described above that are not factored into the Forecast, the City has identified various risk factors that could have a potential impact on the Forecast. These include:
Economic slowdown/recession (continued high inflation, federal reserve actions, and banking disruptions)
State/federal legislative changes and legal challenges; Labor costs outside the budget assumptions;
CalPERS actuarial changes or reform actions; and
Unanticipated critical capital/infrastructure needs.
As the City has experienced in the past and with the latest COVID-19 pandemic, General Fund revenues may exceed or fall below expectations based on changes in economic or non-economic conditions. This type of volatility has been seen in the City’s largest General Fund revenues, Property Tax, Sales Tax, and Transient Occupancy Tax (TOT). TOT receipts were the most severely impacted by the COVID-19 pandemic. Various cost elements can also vary from year to year, such as retirement costs that are impacted by the earnings assumptions and performance of the California Public Employees Retirement System (CalPERS).
119
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
ECONOMIC OUTLOOK
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 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 reflect ing a variety of options on the fate of the economy – ranging from recession to soft landing to robust growth.” 2 Given this uncertainty, there is greater risk for variances in the economically sensitive revenues, such as Sales Tax, Transient Occupancy Tax and Property Tax. This Forecast assumes moderate economic growth in these areas, with Transient Occupancy Ta x continuing to improve from the severe COVID-19 impacts. Adjustments may be necessary in future Forecasts depending on actual economic performance.
1 UCLA Anderson Forecast, March 2023, Recession or No Recession? That is the Question 2 February 2023 Outlook Survey Summary (nabe.com)
120
City of
Santa Clara
Real GDP Levels, US$ Trillions, Chained 2072 Prices, Seasonally Adjus ed Annual Rates US$ Trillions
21.0 20.9
20 .8
20.7 20 .6
20.5 20 .4
20 .3
20.2 20.1
20.0 19.!12
Forecast ➔
20.l.S
19.95 19.94
20.90 0.0 ~---------- ----1------------~---------
ill m w ™mm ITT ™ I m Q2 Q3 Q4
2022 2023 20 24
Source_- UCLA Anderson Forecast and US. Burea u of Economic Analysis o-Recessiora
Recession
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
Employment data has remained positive with low unemployment rates. On a national level, the unemployment rate was 3.6% in February 2023. This rate was well below the record setting high of 14.7% in April 2020, and slightly above the pre-pandemic unemployment rate of 3.5%.
U.S. Civilian Unemployment Rate, seasonally adjusted
Note: shaded area represents recession, as determined by the National Bureau of Economic Research Source: U.S. Bureau of Labor Statistics
In the fourth quarter 2022 second estimate, the Gross Domestic Product (GDP) increased at an annual rate of 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.
3 3 https://www.bea.gov/sites/default/files/2023-02/tech4q22_2nd.pdf 121
City of
Santa Clara
Percent
16.0 14.0
12.0 10.0
8.0 6.0
4.0 2.0
Feb
2003
Feb Feb Fe b
2005 2007 2009
Feb Feb Feb Feb Feb Feb feb
2011 2013 2015 2017 2019 2021 2023
Real GOP: Percent change from preceding quarter
40 3 0
20 10
0 -10
-20
-30
--40
2019
U.S. Bureau of Ernnomk Afla lysls
2020 2021 2022
Seaso nally atljm led annual I ates
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
The unemployment rates at the state and local level also remain low, with this region outperforming both the State and the nation.
Property values in Santa Clara remain high. In 2022, the median price of a single-family home was $1.8 million, which was up from the 2021 level of $1. 64 million as shown in the Single-Family Residential Home Sales chart. The number of single-family c losed sales, however, was down from 659 in 2021 to 515 in 2022. With the rise in interest rates from the historic lows experienced over the last several years, there is risk to this sector. In the first quarter 2023, the median single-family home price was $1.6 million and there were 68 closed sales.
There are significant development projects underway in Santa Clara that will bring new revenues as well as new costs. The financial impacts of these developments have not been factored into this Forecast given the uncertainty regarding the timing. However, it is anticipated that this additional development activity will have a positive impact on the Forecast.
Unemployment Rate
(Not Seasonally Adjusted)
Dec
2019
Dec
2020
Dec
2021
Dec
2022
Nation 3.4% 6.5% 3.7% 3.3%
California 3.9% 8.9% 5.0% 3.9%
San José-Sunnyvale-Santa Clara
Metropolitan Statistical Area
2.4% 6.2% 2.9% 2.4%
Source: California Employment Development Department, U.S. Bureau of Labor Statistics
Data Source: Santa Clara County Association of Realtors 122
City of
Santa Clara
City of Santa Clara
Single Family Residential Home Sales
$2,000,000
$1 ,800,000
$1,600,000
$1 ,400,000
$1,200 ,000
$1 ,000,000
$800,000
$600,000
$400,000
$200,000 11 II II
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
• Ave. Price ■ Med. Price
700
600
,500
400
300
200
100
City of Santa Clara
Number of Single Family Closed Sales
2012 2013 2014 2015 2018 2017 2018 2019 2020 2021 2022
■ # of Oose d Salos
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
GENERAL FUND REVENUES
There are several General Fund revenue sources supporting the City’s activities as shown in the table below.
FY 2024-2034 General Fund Revenue Sources
($ in millions)
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 $ m $ m $ m $ m $ m $ m $ m $ m $ m $ m $ m
Property Tax $85.8 $89.6 $93.9 $98.4 $103.6 $109. 1 $114.9 $121.1 $127.5 $134.4 $141.5 Sales Tax $60.5 $62.4 $64.2 $66.1 $68.1 $70. 2 $72.3 $74.4 $76.7 $79.0 $81.3 Transient
Occupancy
Tax
$20.4 $22.0 $23.1 $24.0 $25.0 $25. 9 $27.0 $28.1 $29.2 $30.4 $31.6 Franchise Tax $5.2 $5.3 $5.5 $5.6 $5.8 $6. 0 $6.1 $6.3 $6.5 $6.7 $6.9 Documentary
Transfer Tax
$1.6 $1.6 $1.7 $1.7 $1.7 $1. 8 $1.8 $1.8 $1.9 $1.9 $2.0 Licenses and
Permits
$8.6 $8.8 $9.0 $9.2 $9.5 $9. 7 $9.9 $10.2 $10.4 $10.7 $11.0 Fines and
Penalties
$1.2 $1.2 $1.2 $1.2 $1.2 $1. 2 $1.3 $1.3 $1.3 $1.3 $1.3 Interest
Income
$3.5 $3.7 $4.2 $4.4 $4.5 $4. 6 $4.8 $4.9 $5.1 $5.2 $5.4 Rents $13.4 $14.9 $16.8 $18.2 $19.2 $19. 6 $20.6 $21.1 $21.6 $22.0 $22.5 Other Services
Fees
$37.7 $38.7 $40.0 $41.0 $42.0 $43. 0 $44.0 $45.1 $46.2 $47.3 $48.4 Transfers from
Other Funds
$2.0 $2.0 $1.6 $1.7 $1.7 $1. 7 $1.7 $1.7 $1.7 $1.7 $1.7 SVP Transfer $32.0 $34.0 $35.4 $36.8 $38.2 $39. 8 $41.4 $43.0 $44.7 $46.5 $48.4 All Other
Revenues
$0.7 $0.7 $0.7 $0.7 $0.7 $0. 7 $0.7 $0.7 $0.7 $0.7 $0.7 Total Sources $272.6 $284.9 $297.3 $309.0 $321.2 $333.3 $346.5 $359.7 $373.5 $387.8 $402.7 % Change
from Prior Yr
4.5% 4.4% 3.9% 3.9% 3.8% 4.0% 3.8% 3.8% 3.8% 3.8%
123
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
Sales tax and property tax comprise the largest individual sources of General Fund revenues, representing a combined $146.3 million in FY 2023/24, or over 50% of the total. These categories along with Transient Occupancy Tax are economically sensitive and account for approximately 60% of the General Fund revenues.
FY 2023/24 General Fund Revenues
($272.6 million)
Following is a discussion of the major General Fund revenue categories:
Property Tax
The Property Tax category includes Secured and Unsecured Property Taxes. The County of Santa Clara Office of the Assessor and the Controller-Treasurer Department meets quarterly with cities to review property tax revenue allocated to Santa Clara County cities. The Controller-Treasurer Department provides projections on the current year property tax receipts, including updates on the assessed valuation and estimates on anticipated adjustments made from property tax appeals. The current year estimates are used as the starting point in the Forecast. The County Assessor’s Office also provides information to cities on a monthly basis on the status of the assessment roll for the upcoming year. In FY 2022/23, property tax receipts are estimated at $81.9 million.
In FY 2023/24, property tax revenue is projected at $85.8 million and includes secured property tax of $82.9 million and unsecured property tax of $2.9 million. Assessed valuation growth on secured property is projected at 6.0% and reflects the annual inflation factor based on Consumer Price Index (2% increase in FY 2023/24), growth due to property sales, and a general allowance for new construction projects being added to the tax rolls. In the remaining years of the forecast, annual assessed valuation growth of
4.5% - 5.5% is projected. In order to meet t hese growth projections, developments with assessed Property Tax,
$85.8 M,
31.5%
Sales Tax,
$60.5 M,
22.2%
Transient
Occupancy
Tax, $20.4 M,
7.5% Charges for
Services,
$37.5 M,
13.7%
SVP
Transfer,
$32 M,
11.7%
Other
Revenue,
$36.4 M,
13.4%
$166.7 M or
61% of
General
Fund
Revenue
124
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
valuation between $700 million to $1 billion would need to continue annually. By the end of the forecast period, Property Tax receipts are projected to reach $141.5 million.
Secured Property Tax receipts include general secured property tax along with supplemental property tax (retroactive collections back to the point of sale for reassessments of value due to property resale), residual Redevelopment Agency (RDA) receipts (starting in FY 2022/23, the residual receipts ceased and the funds are allocated directly to the taxing entities’ secured property tax roll), and excess Educational Revenue Augmentation Fund (ERAF) funds. Under Proposition 98, a portion of property tax receipts are 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 Forecast assumes $3.8 million from ERAF in FY 2023/24, which is lower than prior years as the County of Santa Clara has indicated that approximately 30% of the ERAF receipts are considered high risk due to disputes regarding the allocation of these funds.
Secured Property Tax receipts are expected to increase 4.9% in FY 2023/24, and 4.5% in FY 2024/25.
Annual growth ranging from 4.9% to 5.5% is projected for the remaining years of the Forecast. Unsecured Property Tax receipts are projected to increase 1% annually over the forecast period. Overall, property tax receipts are expected to grow at an average annual rate of 5.1% over the forecast period.
Property Tax Revenues
($ in millions)
Note: FY 2013/14 includes one-time $6.1 million due to Redevelopment Agency dissolution $0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
Millions
125
City of
Santa Clara
t-- t-- - I-
- 1-- 1-- - 1-- 1-- - I-
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
Sales Tax
Santa Clara’s sales tax collections are directly influenced by local, regional, national and international economic and business cycles. Because of this, sales tax collections are one of the most economically sensitive General Fund revenue sources. These collections, which were impacted by COVID-19, are expected to experience modest growth in FY 2023/24 and continue to grow throughout the forecast period.
As shown in the chart below, sales tax collections are expected to total $60.5 million in FY 2023/24 and increase approximately 3% annually. Based on thes e projections, annual collections will reach $81.3 million by FY 2033/34. These projections are based on a review of sales tax receipts and information provided by the City’s sales tax consultant, Avenu Insights & Analytics. Their estimates incorporate individual category/segment projections with adjustments for known individual business anomalies such as missed payments or misallocations.
Sales Tax Revenues
($ in millions)
Note: FY 2016/17 includes a one-time true-up payment due to the unwinding of the State’s Triple Flip.
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
Millions
126
City of
Santa Clara
- j
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
To provide context on how the City generates its sales tax revenues and the performance in recent years, the chart below from Avenu Insights & Analytics, the City’s Sales Tax consultant, breaks out the sales tax per capita for the fourth quarter of each calendar year for the past five years, adjusted for inflation.
The COVID-19 related impacts are reflected starting in the fourth quarter 2020 data with declines in General Retail, Food Products (includes restaurants), Transportation, and Business-to-Business. As shown in the chart, the City’s largest sector is Business-to-Business, which continues to provide the foundation for the City’s tax base.
Transient Occupancy Tax
Transient Occupancy Tax (TOT) is calculated as
a percentage of City hotel/motel room charges. The
City's current TOT rate is 11.5%. This rate increased from 9.5% to 11.5% effective January 1, 2022 as approved by the City Council on October 19, 2021. This implemented one-half of the up to four percentage point increase approved by the voters in November 2020. As with sales tax, TOT is sensitive to business cycles and can vary greatly from year to year based on occupancy levels and room rates.
Prior to COVID-19, this category had experienced tremendous growth as shown in the TOT chart on the following page. With the COVID-19 safety restrictions, TOT receipts plummeted at the end of FY 2019/20 and through FY 2020/21. Collections began improving in FY 2021/22 and continue to experience strong growth in FY 2022/23 but remain below pre-COVID levels.
TOT receipts are projected to continue to improve over the forecast period with an increase to $20.4 million in FY 2023/24 as this sector continues to recover from the COVID-19 impacts, followed by growth ranging from 4% to 7.5% annually over the forecast period. By the end of the Forecast period, TOT receipts are projected to reach $31.6 million.
127
City of
Santa Clara
Santa dara
Annua l Per capita Sales Ta
A~dfor Inflation
leonstant 20ts SI
■ G<o"era I Retail
Food Products
■ T ransportation
■ Corutructicn
■ El us:i ness To Susfne.ss
■ Misce Uaneom
■ County Poo l
{Cash Basis)
2.0C180.4 $ 450 2019Q 4 $43 5 202.004 S371 W21Q4 $383 202204 S398
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
Transient Occupancy Tax Revenues
($ in millions)
Other Taxes
Other Taxes include the Franchise Tax and Documentary Transfer Tax. The Franchise Tax revenues are projected at $5.2 million in FY 2023/24 with annual 3% increases in the out years of the Forecast.
The Documentary Transfer Tax, which is imposed on the transfer of the title of real property, is projected at $1.6 million in FY 2023/24 with 2% annual increases in the out years of the Forecast.
Licenses and Permits
Licenses and Permits are projected to total $8.6 million in FY 2023/24, including business licenses taxes at $6.0 million, fire permits at $2.0 million, parking permit at $525,000, and encroachment and miscellaneous permits at $69,000. This reflects the voter-approved change to the Business License Tax effective July 1, 2023 that updated the structure of the business tax and increased the amount of revenue expected to be generated. The Business License Tax can be increased annually by the Consumer Price Index with a maximum of 5% annually. For the Licenses and Permits category, average annual growth of 2.5% is projected in the out years of the Forecast, with revenues reaching $11.0 million in FY 2033/34.
Fines and Penalties
Fines and Penalties are projected to total 1.2 million in FY 2023/24 and increase to $1.3 million by FY 2033/34. This Forecast assumes late charge collections will resume in F 2022/23.
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
Millions
128
City of
Santa Clara
I
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
Interest Income
The City invests all funds not needed for current cash requirements in accordance with the City Council- approved Investment Policy. The factors that directly influence General Fund interest income include prevailing interest rates, the size of the portfolio and the relative percentage of the portfolio allocated to the General Fund. Based on the projected interest rates and cash balances, the General Fund is expected to receive $3.5 million in interest in FY 2023/24. In the remaining years of the Forecast, interest earnings are projected to range from $3.7 million to $5.4 million.
Rents
The Rents category includes property rents and leases as well as right-of-way rental fees charged to the water sewer and utilities. In FY 2023/24, rent revenue is estimated to total $13.4 million, including $8.0 million from property rents and leases and $5.4 million from right-of-way rental fees. This category factors in projected lease revenue from the Related project (increasing from $761,000 to $5.2 million) as well the Commerce and Peddlers Plaza (revenue of $500,000 through FY 2027/28). Growth projections for the out years of the Forecast are based on individual lease agreements. Rent revenue is projected to reach $22.5 million by FY 2033/34.
Other Services Fees
The Other Services Fees category includes fees charged for various City services provided by the departments of Community Development, Police, Fire, Park and Recreation, and Public Works as well as cost allocation plan reimbursements and st adium-related reimbursements. The Fire development- related fees have been moved to a new Fire Development Fund. This category is estimated to generate $37.7 million in FY 2023/24 and increase to $48.4 million by FY 2033/34.
Transfers from Other Funds
The Transfers from Other Funds totals $2.0 million in FY 2023/24 and includes the following: a transfer of $1.5 million from the Storm Drain Capital Fund to support storm drain operations; a transfer of $0.3 million from the Electric Utility Fund to support 1.0 position in the Finance Department and 1.0 position in the Human Resources Department added during FY 2022/23 (these positions will be factored into the cost allocation plan starting in FY 2025/26); a transfer of $0.2 million from the Building Development Services Fund to cover a portion of the Code Enforcement costs that support development activity. In the out years of the Forecast, the transfers total $1.7 million and include the transfers from the Storm Drain Capital Fund and the Building Development Services Fund.
Silicon Valley Power Transfer
In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund. Contributions are projected to total $32.0 million in FY 2023/24 and $34.0 million in FY 2024/25. It is anticipated that revenues will reach $48.4 million by FY 2033/34, increasing at an annual rate of approximately 4%. Growth in this category is primarily driven by market projections for electric consumption, resources costs, and any rate increases assumed for the Electric Utility.
129
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
GENERAL FUND EXPENDITURES
General Fund expenditures are projected to grow from $280.6 million in FY 2023/24 to $410.2 million by the end of the forecast period. The FY 2023/24 expenditures are 3% above the FY 2022/23 Adopted Budget of $272.4 million.
FY 2024-2034 General Fund Expenditures
($ in millions)
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 $ m $ m $ m $ m $ m $ m $ m $ m $ m $ m $ m
Salaries 132.7 139.1 144.8 150.4 155. 6 160.9 166.3 171.8 177.4 183.3 189.7 Retirement 55.2 58.6 61.3 63.8 66.9 72.5 75.5 78. 0 78.4 80.5 83.0 Other
Benefits 24.1 25.3 26.1 27.1 28.1 28. 8 29.9 31.0 32.2 33.3 34.3 Sub-Total
Labor Costs $ 212.0 $ 223.0 $ 232.2 $ 241.3 $ 250.6 $ 262.2 $ 271.7 $ 280.8 $ 288.0 $ 297.1 $ 307.0 Materials,
Services,
Supplies
34.7 36.0 38.0 40.4 41.6 44. 2 45.4 48.1 49.4 52.2 54.1 Interfund
Services 28.1 28.7 30.8 31.6 32.5 33. 5 34.5 35.5 36.5 37.6 38.8 Loans and
Transfers 5.8 6.1 7.2 7.5 8.0 8. 4 8.9 9.5 9.4 9.5 10.3 Sub-total
Other Costs $ 68.6 $ 70.8 $ 76.0 $ 79.5 $ 82.1 $ 86.1 $ 88.8 $ 93.1 $ 95.3 $ 99.3 $ 103.2 Total Uses $ 280.6 $ 293.8 $ 308.2 $ 320.8 $ 332.7 $ 348.3 $ 360.5 $ 373.9 $ 383.3 $ 396.4 $ 410.2 % Change
from Prior Yr 4.7% 4.9% 4.1% 3.7% 4.7% 3.5% 3.7% 2.5% 3.4% 3.5%
130
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
Labor Costs
Labor costs, which include salary, retirement and other benefit costs, are projected at $212.0 million in FY 2023/24. These costs are derived from a position-level analysis of City staffing, including actual salary and benefit information, negotiated salary and benefit adjustments for bargaining groups that have current Memorandums of Understanding with the City, projected adjustments for the out years of the forecast, and retirement information from the California Public Employees Retirement System (CalPERS) and the City’s actuary.
Over the Forecast period, these costs are projected to increase an average of 3.8% annually and reach $307.0 million by FY 2033/34.
Retirement Costs
Retirement costs represent one of the largest components of labor costs. The City contributes to CalPERS, which provides a defined benefit plan for participating public entities within the State of California. CalPERS offers a menu of benefit provisions that are established by State statutes within the Public Employee Retirement Law. The City selected it s benefit provisions from the benefit menu by contract with CalPERS and adopted those benefits through local ordinance, following negotiations with employee bargaining groups.
CalPERS retirement costs rose sharply over the past decade as a result of the market losses in the early 2000s followed by benefit enhancements in the mid-2000s. In FY 2011/12, General Fund pension costs Salaries,
$132.7 M,
47.3%
Benefits,
$79.3 M,
28.3%
Non-
Personnel/Other,
$68.6 M, 24.4%
$212 M or
76% of
General Fund
Expenditures
FY 2023/24 General Fund Expenditures by Type
($280.6 million)
131
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
were $18.9 million; by FY 2023/24, pension costs are projected to be $55.2 million. Retirement costs are expected to continue to rise with increases in salaries, downward revisions to investment return assumptions, adjustments to account for investment losses, and other demographic assumption changes. By the end of the Forecast period, PERS expenditures are projected to reach $83.0 million and will account for an estimated 20% of General Fund expenditures.
On December 21, 2016, the CalPERS Board approved lowering the investment earnings assumption (discount rate) downward from 7.5% to 7.0% over a three-year period. This change increased rates beginning in Fiscal Year 2018/19, with the full impact to be realized in FY 2025/26. In February 2018, the CalPERS Board approved shortening the period over which actuarial gains and losses are amortized from 30 years to 20 years for new pension liabilities. This policy became effective as of the June 30, 2019 CalPERS actuarial valuations. On November 21, 2021, the board adopted new actuarial assumptions that impact the required contributions for FY 2023/24. This included lowering the discount rate to 6.8%.
Additional actions will likely be implemented in the future as part of a risk mitigation strategy to move to more conservative estimates over time to reduce volatility, including additional downward revisions to the discount rate.
Year-by-year pension rate projections are shown below. These projections incorporate rates provided by CalPERS for FY 2023/24. In the remaining years of the Forecast, the retirement costs are based on rates provided by the City’s actuary.
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
Millions
General Fund PERS Costs
Miscellaneous Safety
132
City of
Santa Clara
■ ■
FY 2024- 2034 TEN -YEAR GENERAL FUND FINANCIAL FORECAST Materials, Services and Supplies
The materials, services and supplies estimate for FY 2023/24 is $34.7 million, which is above the FY 2022/23 Adopted Budget level of $31.0 million and reflects anticipated increases in costs as well as those that occur every other year, such as election costs. Expenditures are projected to reach $54.1 million by FY 2033/34.
Interfund Services
Interfund services include the General Fund contribution to several internal service funds, including Communications Acquisitions, Fleet Operations, Information Technology Services, Special Liability Insurance, Unemployment Insurance, Vehicle Replacement, and Workers’ Compensation. In FY 2023/24, these costs are estimated at $28.1 million and increase to $38.8 million by FY 2033/34. These estimates are based on an evaluation of the activity levels in each internal service fund.
Loans and Transfers
This category includes debt service payments; transfers to the Cemetery Fund, Solid Waste Fund, Parks and Recreation Operating Grant Trust Fund (Senior Nutrition) and Sports and Open Space Authority Fund to ensure sufficient funding is available to provide services or meet obligations; transfers to capital funds for Public Works Capital Project Management; and the City’s required contributions to Downtown Parking Maintenance District and Convention Center Maintenance District. These costs are estimated at $5.8 million in FY 2023/24 and total $10.3 million in FY 2033/34.
133
f~•"·•·~ City of
· "-.,, · Santa Clara
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
RESERVES
Reserves have generally been established with one-time funds and, with the exception of funding set aside in the Technology Reserves to maintain 100% cost recovery, are not reflected in the Forecast figures. Reserves, however, are an important component of the budget. Following is a discussion of the major General Fund Reserves.
Budget Stabilization Reserve: During FY 1985/86, the City Council established a policy regarding use of the City’s General Contingency Reserve funds. Under that policy, two separate reserves were established, a Budget Stabilization Reserve (BSR) and a Capital Projects Reserve. The BSR is set aside to protect vital General Fund services through 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-days or 25% of budgeted appropriations). When the FY 2022/23 and FY 2023/24 Operating Budget was adopted, the City Council approved an exception to the 25% BSR target level to address the impacts associated with COVID-19, allowing the reserve to drop to 15% of expenditures.
The draft Budget Principles for FY 2023/24 would also allow the Reserve level to continue to be set at a minimum of 15% of expenditures while the City continues to financially recover. The BSR reserve level currently totals $40.8 million. To meet the 15% reserve target, the reserve will need to be increased to an estimated $44 million by FY 2024/25. It is anticipated that excess revenues and expenditure savings from FY 2022/23 will be available to increase the BSR to meet the 15% target level.
Capital Projects Reserve: This reserve is set aside to fund the portion of the City’s Capital Improvement Program (CIP) that has no other funding sources to support it. The projects funded from this critical reserve provide basic City infrastructure and quality facilities. The Council adopted a policy in FY 1996/97 to maintain a minimum of $5.0 million in the Capital Projects Reserve. The Capital Projects Reserve currently totals $6.6 million.
Land Sale Reserve: This reserve sets aside proceeds from land sales to be used for land-related purposes or other General Fund needs as determined by the City Council. This reserve currently totals $18.5 million.
Pension Stabilization Reserves: These reserves in the General Fund and other City funds have targeted contributions that would fund 1% of the City’s unfunded pension liability annually to address the City’s pension unfunded accrued liability. For the General Fund, this reserve currently totals $21.4 million.
134
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
FY 2023/24 BUDGET PRINCIPLES
Below are FY 2023/24 Budget Principles that provide a framework for the budget process.
Draft Budget Principles for 2023/24
1. Make decisions within the context of the City’s Code of Ethics and Values, especially being Fiscally Responsible, Communicative, and Service-Oriented.
2. Consider budget decisions with long-term implications taking into account data from the Ten-Year Financial Forecast.
3. To the extent possible, align ongoing expenditu res with ongoing revenues to avoid negative impacts on future budgets and maintain the City's high financial management standards.
4. When addressing General Fund shortfalls, use a combination of ongoing and one-time solutions to balance the competing goals of aligning ongoing revenues and expenditures and minimizing the service delivery impacts to the community.
5. Continue cost control measures until the ongoing General Fund revenues and expenditures are in alignment.
6. Approve an exception to the Council Policy that dictates setting the General Fund Budget Stabilization Reserve at or above 25% of adopted budget expenditures; set the Reserve level at a minimum of 15% of expenditures.
7. Focus on projects and services that benefit the community as a whole.
8. Pursue economic development objectives and strategies to foster new public and private investment within Santa Clara, and to create employment opportunities.
9. Balance between compensation adjustments to retain and attract employees and funding for positions.
10. Use one-time unrestricted revenues (e.g., annual General Fund surplus) for one-time uses such as increasing reserves, funding capital or Information Technology projects, paying off debt, and/or paying off unfunded pension or other post-employment benefits liabilities.
11. Inform and communicate clearly and broadly to residents, businesses and employees regarding the City’s fiscal position and budget; schedule hearings to promote active participation in the City Council’s budget deliberations.
12. With limited exceptions, establish fees based on full cost recovery where individuals/businesses rather than the community at-large are benefitting from City services. This preserves limited unrestricted resources for providing services that benefit the community as a whole.
13. Focus on business process redesign in order to improve employee productivity and the quality, flexibility, and cost-effectiveness of service delivery (e.g., streamlining, simplifying, reorganizing functions, and reallocating resources).
14. Explore expanding existing revenue sources and/or adding new revenue sources.
15. Engage employees to contribute new and innovative ideas during the department budget development process.
16. Use the General Plan as a primary long-term fiscal planning tool and link ability to provide City services to development policy decisions.
135
FY 2024-2034 TEN-YEAR GENERA L FUND FINANCIAL FORECAST
CONCLUSION
The Forecast provides policy makers, the public, and City staff an updated assessment of the City’s financial condition that considers the latest projections of economic conditions. It serves as a starting point in the budget development process by providing the necessary context for making budget decisions.
The Forecast also identifies known risk factors and vulnerabilities, and it provides a foundation for evaluating priorities and understanding trade-offs moving forward.
The City’s financial condition has improved since the release of the last forecast, but a General Fund deficit remains. A shortfall of $8.0 million - $8.9 million is projected for FY 2023/24 and FY 2024/25. By the end of the Forecast period, revenues are projected at $402.7 million while expenditures are estimated at $410.2 million, resulting in a deficit of $7.5 million. When put into context of the size of the General Fund budget, the shortfall in FY 2023/24 is 2.8% of General Fund expenditures. In the out years of the Forecast, the annual margins are relatively narrow, ranging from 1.8% to 4.3% of the projected annual expenditure budget. The Adopted FY 2021/22 and FY 2022/23 Biennial Operating Budget included a budget balancing strategy that relied on a combination of expenditure reductions, revenue solutions, and use of reserves. The use of ongoing and one-time solutions balanced the competing goals of aligning ongoing revenues and expenditures and minimizing the service delivery impacts to the community. This also allowed for time to evaluate the post COVID-19 recovery and for conditions to improve. A combination of budget balancing actions is again expected to be brought forward in the FY 2023/24 and FY 2024/25 Biennial Operating Budget that will be adopted in June 2023.
In addition to the projected General Fund shortfall identified in this Forecast, there are elements of the City’s budget that are not included in the Forecast as they have been funded pay-as-you-go with one- time sources. These include the costs to fund ca pital improvements that rely on General Fund funding, address unmet/deferred infrastructure needs, fully fund public safety equipment replacement, and make additional contributions to reserves. The Forecast also does not incorporate the financial impacts of new developments that may have a positive impact given the uncertainty regarding the timing. This Forecast serves as a strategic planning tool to meet the City’s long-term goal to plan for additional fiscal capacity and bring forward sustainable funding strategies to address these unmet cost elements. This may include new and/or revised revenue options in the future.
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Statements of Sources
and Uses of Funds
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General Fund
139
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140
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENT OF SOURCES AND USES OF FUNDS
GENERAL FUND
The General Fund is the primary fund of the City that is used to account for all revenues and expenses that are not restricted by law or policy to be accounted for in another fund. The General Fund supports many of the most visible and essential City services including libraries, parks, police, and fire protection. The General Fund also includes many departments that provide central services inc luding the City Manager, City Attorney, City Clerk, Mayor and City Council, Finance, and Human Resources offices and departments.
General Fund Sources
General Fund sources total $385.1 million in the Proposed FY 2023/24 budget and consist of $110.8 million in fund balance estimated to be carried over from FY 2022/23, $272.1 million in revenue, and $2.2 million in transfers from other funds. The total sources are down $3.1 million from the FY 2022/23 amended budget. This change reflects a decline in the beginning fund balance ($28.4 million) and an increase in revenues and transfers ($25.3 million). The drop in the beginning fund balance is primarily due to the use of unrestricted fund balance resulting from the close out of FY 2021/22 and use of the Budget Stabilization Reserve and the Land Sale Reserve as part of the FY 2022/23 budget balancing. The growth in revenues primarily reflect increases in Property Tax, Transient Occupancy Tax and the SVP Transfer. As part of the budget process, estimates are developed for each line item, taking into consideration activity projections, historical trends, and the economic environment.
The table below summarizes the projected sources of General Fund revenues and transfers in this budget.
Funding Source
FY 2021/22
Actual
FY 2022/23
Amended
FY 2022/23
Estimate
FY 2023/24
Proposed
FY 2024/25
Change
FY 2024/25
Proposed
Property Tax 74,630,557 75,261,000 81,635,000 85,800,000 3,745,000 89,545,000 Sales Tax 56,901,656 60,173,000 60,173,000 60,524,000 1,828,000 62,352,000 Transient Occupancy
Tax 10,812,400 12,600,000 12,600,000 21,275,000 2,375,000 23,650,000 Franchise Tax 4,632,522 4,780,000 4,780,000 5,150,000 150,000 5,300,000 Documentary Transfer
Tax 2,356,076 1,480,000 1,480,000 1,600,000 32,000 1,632,000 Licenses and Permits 4,738,855 3,855,000 3,500,000 8,594,000 212,000 8,806,000 Rents and Leases 9,763,118 11,336,766 11,336,766 13,627,660 1,522,609 15,150,269 Other Services Fees 36,375,116 38,603,245 38,603,245 38,067,896 1,185,522 39,253,418 State/Other Agencies 2,996,605 310,000 310,000 520,000 0 520,000 Fines and Penalties 431,099 1,615,000 600,000 1,225,000 5,000 1,230,000 Interest 827,866 2,532,000 2,532,000 3,500,000 208,000 3,708,000 SVP Transfer 27,259,168 26,170,000 26,170,000 32,000,000 2,000,000 34,000,000 Other Revenue 815,529 189,099 189,099 180,000 0 180,000 Revenue Subtotal 232,540,567 238,905,110 243,909,110 272,063,556 13,263,131 285,326,687 Transfers From 9,642,979 10,015,948 10,015,948 2,200,044 (184,750) 2,015,294 Total Revenues/
Transfers 242,183,546 248,921,058 253,925,058 274,263,600 13,078,381 287,341,981
141
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENT OF SOURCES AND USES OF FUNDS The largest economically sensitive revenue categories (property tax, sales tax, and transient occupancy tax) account for approximately 60% of General Fund revenues. Following is a discussion of these categories as well as other major General Fund revenue categories.
Property Tax
Property tax is the largest revenue source for
the City, representing approximately 30% of
revenues. Under Proposition 13, the
assessed valuation of properties held by the
same owner from year to year is adjusted
each year by the lesser of 2.0% or the
percent change in the annual California
Consumer Price Index (CCPI). For FY
2023/24, the adjustment factor based on
CCPI is 2.0%. Beyond the inflation
adjustment, growth in property tax receipts is
driven by reassessments upon the sale of
properties and new construction projects
being added to the tax rolls. Overall, property
tax revenue is expected to continue its solid
growth with projected receipts $85.8 million in
FY 2023/24, and $89.5 million in FY 2024/25.
Secured property tax receipts are projected to total $82.9 million, an increase of 4.9% from the FY 2022/23 year- end estimate of $79 million. The category includes general secured property tax (tax on real property that includes the land and the improvements attached to it, such as a home or building) along with supplemental property tax (retroactive collections back to the point of sale for reassessments of value due to property resale), residual Redevelopment Agency receipts, and excess Educational Revenue Augmentation Fund (ERAF) funds (under Proposition 98, a portion of property tax receipts are allocated to the ERAF and once there are sufficient funds in ERAF to fulfill the obligation to the school districts, excess funds are returned to the taxing entities).
General secured property tax for FY 2023/24 is based on the assessed value as of January 1, 2023. Assessed valuation growth on secured property is projected at 6.0% in FY 2023/24 and reflects 2.0% annual inflation, growth due to property sales, and an allowance for new c onstruction projects. In FY 2024/25, secured property tax receipts are estimated at $86.6 million.
Unsecured property tax is assessed on personal property that is tangible or moveable and is not attached to real estate (e.g., office equipment, planes, boats). Unsecured property tax receipts are projected to total $2.9 million in FY 2023/24 and FY 2024/25.
Santa Clara
Unified School
District, $38.36 County of
Santa Clara,
$18.71
County Office
of Education,
$3.97
City of Santa
Clara, $10.17
West Valley
College, $11.09
Other Special
Districts, $2.51
ERAF (Other
School
Districts),
$15.19
Property Tax Distribution per $100 Collected
142
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENT OF SOURCES AND USES OF FUNDS Sales Tax
Sales tax is the General Fund’s second largest
revenue. The City's current sales tax rate is
9.125%, of which the City of Santa Clara receives
1%. Santa Clara’s sales tax collections are
directly influenced by local, regional, national, and
international economic and business cycles and
are therefore one of the most volatile General
Fund revenues. These collections, which were
impacted by COVID-19, are expected to
experience modest growth in FY 2023/24 and FY
2024/25. Sales tax receipts are estimated at $60.5
million in FY 2023/24 and grow 3% in FY 2024/25
to $62.4 million.
Transient Occupancy Tax
Transient Occupancy Tax (TOT) is calculated as a perce ntage of City hotel/motel room charges. The City's current TOT rate is 11.5%. This rate increased from 9.5% to 11.5% effective January 1, 2022 as approved by the City Council on October 19, 2021. This implemented one-half of the up to four percentage point increase approved by the voters in November 2020. As with sales tax, TOT is sensitive to business cycles and can vary greatly from year to year based on occupancy levels and room rates. Prior to COVID-19, this category had experienced tremendous growth. With the COVID-19 safety restrictions, TOT receipts plummeted at the end of FY 2019/20 and through FY 2020/21. Collections began improving in FY 2021/22 and continue to experience strong growth in FY 2022/23 but remain below pre-COVID levels.
The FY 2023/24 and FY 2024/25 Proposed Budget assumes a phase-in of the remaining rate increase approved by the voters in 2021 as well as continued recovery in this category. In FY 2023/24, TOT receipts are estimated at $21.3 million, and includes an additional $850,000 from a one percentage point increase in the TOT rate assumed in January 2024. In 2024/25, the revenue estimate increases to $23.7 million and includes $1.7 million from the full year of the one percentage point increase. The remaining one percentage point increase is expected to be implemented in January 2026.
Franchise Tax and Documentary Transfer Tax
The Franchise Tax revenues are projected at $5.15 million in FY 2023/24 and increase 3% to $5.3 million in FY 2024/25. The Documentary Transfer Tax, which is imposed on the transfer of the title of real property, is projected at $1.6 million in FY 2023/24 and increase 2% to $1.63 million in FY 2024/25.
Licenses and Permits
Licenses and Permits are projected to total $8.6 million in FY 2023/24, including business licenses taxes at $6.0 million, fire permits at $2.0 million, parking permit at $525,000, and encroachment and miscellaneous permits at $69,000. This reflects the voter-approved change to the Business License Tax effective July 1, 2023 that updated the structure of the business tax and increased the amount of revenue expected to be generated. The Business License Tax can be increased annually by the Consumer Price Index with a maximum of 5% annually. In FY 2024/25, revenues in this category are projected to increase to $8.8 million.
Statewide
Sales Tax,
$6.00
Santa Clara
County
(Including
VTA), $2.00
Caltrain,
$0.125 City of
Santa
Clara, $1.00
Sales Tax Distribution per $100 Collected
143
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENT OF SOURCES AND USES OF FUNDS Rents and Leases
The Rents category includes property rents and leases as well as right-of-way rental fees charged to the water sewer and utilities. In FY 2023/24, rent revenue is estimated to total $13.6 million, including $8.2 million from property rents and leases and $5.4 million from right-of-way rental fees. This category factors in projected lease revenue from the Related project (increasing from $761,000 to $5.2 million) as well the Commerce and Peddlers Plaza (revenue of $500,000 through FY 2027/28). This category also factors in additional rental income of $200,000 from sports fields reservations. In FY 2024/25, Rents revenue is projected to reach $15.2 million.
Other Services Fees
The Other Services Fees category includes fees charged for various City services provided by the departments of Community Development, Police, Fire, Park and Recreation, and Public Works as well as cost allocation plan reimbursements and stadium-related reimbursements. The Fire development-related fees have been moved to a new Fire Development Fund. This category is estimated to generate $38.1 million in FY 2023/24. This includes an additional $348,000 from fee adjustments brought forward in the FY 2023/24 Municipal Fee Schedule. In FY 2024/25, revenues in this category are projected to reach $39.3 million.
Silicon Valley Power Transfer
In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund.
Contributions are projected to total $32.0 million in FY 2023/24 and $34.0 million in FY 2024/25. Growth in this category is primarily driven by market projections for electric consumption, resources costs, and any rate increases assumed for the Electric Utility.
Transfers From
The Transfers from Other Funds totals $2.2 million in FY 2023/24 and includes the following: a transfer of $1.454 million from the Storm Drain Capital Fund to support stor m drain operations; a transfer of $349,749 from the Electric Utility Fund to support 1.0 position in the Finance Department and 1.0 position in the Human Resources Department added during FY 2022/23 (these positions will be factored into the cost allocation plan starting in FY 2025/26); a transfer of $175,725 from the Building Development Services Fund to cover a portion of the Code Enforcement costs that support development activity; a one-time transfer of $149,600 from the Vehicle Replacement Fund to reflect the sale of vehicles that are being removed from the fleet (FY 2023/24 budget proposal), and a transfer of $69,205 from the Patrick Henry Drive Infrastructure Improvement Fund to repay the Capital Projects Reserve for funding expected to be advanced in FY 2022/23 to cover administrative costs. In FY 2024/25, the transfers total $2.0 million and include the transfers from the Storm Drain Capital Fund, the Electric Utility Fund, and the Building Development Services Fund.
144
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENT OF SOURCES AND USES OF FUNDS General Fund Uses
Overall, General Fund uses total $385.1 million in FY 2023/24. Of this amount, $269.1 million accounts for operational expenditures, $11.6 million are transfers to other funds, and $104.3 million represent fund balance and reserves. The total General Fund uses increase to $391.7 million in FY 2024/25, due to an increase in operational expenditures. The following table summarizes the General Fund expenditures and transfers.
The following table summarizes the General Fund expenditures and transfers.
Expenditures
FY 2021/22
Actual
FY 2022/23
Amended
FY 2022/23
Estimate
FY 2023/24
Proposed
FY 2024/25
Change
FY 2024/25
Proposed
Salaries 94,846,522 132,378,106 132,378,106 128,502,867 4,380,764 132,883,631 Retirement – Safety 32,084,531 36,514,22 7 36,514,227 36,479,753 2,355,085 38,834,838 Retirement – Misc. 17,489,354 19,616,01 1 19,616,011 18,576,594 1,094,753 19,671,347 Other Benefits 17,033,746 20,572,469 20,572,469 24,039,179 1,065,153 25,104,332 Materials/Services/
Supplies 24,850,597 33,361,857 33,361,857 34,094,413 1,055,392 35,149,805 Interfund Services 22,857,269 24,877,37 1 24,877,371 27,435,591 621,552 28,057,143 Capital Outlay 63,339 321,900 321,900 0 37,000 37,000
Total Expenditures 209,225,358 267,641,941 267,641,941 269,128,397 10,609,699 279,738,096 Transfers To* 48,969,098 14,658,172 14,727, 377 11,645,161 (3,924,289) 7,720,872 Total Expenditures
and Transfers To 258,194,456 282,300,113 282,369,318 280,773,558 6,685,410 287,458,968
* In FY 2021/22, the Transfers Out category includes a one-ti me transfer of the Building Inspection Reserve to the newly established Building Development Services Fund.
As a public service organization focused on delivering high-quality services to our community, labor costs reflect the highest level of investment at 74% of the expenditure budget. Following is a discussion of the General Fund expenditure categories.
Salaries and Benefits
The expenditures in this category account for full-time and part-time salaries, retirement, health, social security, other employer benefits, and overtime costs. The FY 2023/24 Proposed Budget factors in the latest negotiated salary adjustments known at the time the budget was developed and updated retirement and benefit costs.
Salaries and benefits total $207.6 million in the FY 2023/24 Proposed Budget and increase 4.3% in FY 2024/25 to $216.5 million. Note that $26.2 million in public safety costs were shifted to the American Rescue Plan Act Fund in FY 2021/22 to account for the one-time federal stimulus funds received to help offset the COVID-19 impacts on the City ‘s budget.
The City of Santa Clara participates in the California Public Employees’ Retirement System (CalPERS) under the Miscellaneous Retirement Plan and the Safety Retirement Plan. In FY 2023/24, retirement costs in the General Fund are budgeted at $36.5 million for Safety employees and $18.6 million for Miscellaneous employees. In FY 2024/25, these costs increase to $38.8 million and $19.7 million, respectively.
145
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENT OF SOURCES AND USES OF FUNDS Materials, Services, and Supplies
The FY 2023/24 Proposed Budget totals $34.1 million for materials, services, and supplies. This budget reflects Base Budget adjustments to account for the updated cost of providing existing services in FY 2023/24, the removal of one-time funding approved for FY 2022/23, and the FY 2023/24 budget actions proposed in the FY 2023/24 and FY 2024/25 Biennial Operating Budget. The Proposed Budget does not yet reflect any carryovers from FY 2022/23 to FY 2023/24. In FY 2024/25, these costs are projected to increase 3.1% to $35.1 million.
Interfund Services
Interfund services are citywide in nature and funded through internal service funds (Information Technology Department services, special liability fund, workers' compensation, Public Works capital project management, vehicle equipment and maintenance, fleet purchases, and communications equipment) that are apportioned to City Departments and funds. This category tot als $27.4 million in the FY 2023/24 and $28.1 million in FY 2024/25.
Capital Outlay
This category includes small capital expense purchases not budgeted within the capital budget. This category has no budget in FY 2023/24 and $37,000 in FY 2024/25.
Transfers to Other Funds
This category includes transfers to other funds to support capital projects, the City’s share of assessment district costs, other services, and debt payments. The FY 2023/24 Proposed Budget for this category totals $11.6 million, including $7.3 million for capital projects, $1.4 million for debt payments, $0.9 million for assessment district payments, $0.8 million for the Cemetery Fund (this reflects a decrease from the previously assumed transfer level as a proposed budget balancing strategy), $0.6 million to the Fire Operating Grant Trust Fund to pay for a portion of the positions funded by the Fire SAFER grant (the SAFER grant generates net General Fund savings due to Fire overtime savings), $0.5 million to the new Fire Development Services Fund (this is offset by the Development Fee Reserve), and $0.1 million for other services.
The Transfers figure drops to $7.7 million in FY 2024/25 and includes $3.7 million for capital projects, $1.4 million for debt payments, $0.9 million for assessments distric t payments, $0.8 million for the Cemetery Fund, $0.8 million to the Fire Operating Grant Trust Fund, and $0.1 million for other services.
General Fund Reserves
The General Fund includes several reserves established by City Council policy or to segregate restricted revenues. Additional detail regarding reserve policies can be found in the Budget and Fiscal Policies section of this document.
Budget Stabilization Reserve
This reserve is used as an allocation for weathering economic downturns, emergency financial crises or disaster situations. Per Council policy, the Budget Stabilization Reserve (BSR) target is equal to the cost of the City’s General Fund operations for three months, or 25% of the expenditure budget. Given the significant impacts of COVID-19 on the City’s budget, the City Council adopted the FY 2022/23 budget principles that allowed this 146
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENT OF SOURCES AND USES OF FUNDS reserve to drop to 15% of budgeted expenditures. The FY 2023/24 proposed budget principles would also allow the BSR to remain at a minimum of 15% given the City’s continuing fiscal challenges. In the Proposed Budget, the BSR is set at $45.8 million in FY 2023/24 (16.3% of expenditures) and FY 2024/25 (15.9% of expenditures).
Capital Projects Reserve
The Capital Projects Reserve (CPR) earmarks funds for the Capital Improvement Program (CIP). The minimum target for this reserve is $5.0 million. This reserve has a projected ending balance of $6.1 million in FY 2023/24 and FY 2024/25. The use of $463,050 from the Capital Projects Reserve is recommended for the Street Tree Services project to fund the third and final year of the Modesto Ash tree removals plan.
Land Sale Reserve
The City Council established the Land Sale Reserve with net proceeds from the sale of City-owned land, with interest earned on these funds being available to be appropriated for General Fund operating expenditures. The Land Sale Reserve has a projected ending balance of $18.5 million for FY 2023/24 and FY 2024/25 and is available for appropriation by City Council action. This re serve balance reflects the full repayment of the loan for the Reed Street- Grant Street Sports Park Project ($5.6 million) in FY 2022/23.
Advanced Planning Fee Reserve
The advanced planning fee is collected as a portion of planning and building fees. These funds are set aside for future long-range planning activities. The Advanced Planning Reserve has a projected ending balance of $2.6 million in FY 2023/24 and $2.4 million in FY 2024/25. This reflects the funding of 1.0 Senior Planner from this reserve beginning in FY 2023/24.
Technology Fee Reserve
The Technology Fee Reserve sets aside the technology fee revenue collected with the development fees and other applicable fees. This reserve is used to fund Accela licensing costs and other technology improvements for the fee programs that assess this fee. The Technology Fee Reserve has a projected ending balance of $1.9 million for FY 2023/24 and FY 2024/25.
Other Reserves
By Council Policy, other reserves are set aside in the General Fund including the Pension Stabilization and Historical Preservation Reserves. For FY 2023/24 and FY 2024/25, the Pension Stabilization Reserve is projected to total $21.4 million and the Historical Preservation Reserve is projected to total $92,754.
Contributions to the Pension Stabilization Reserve are typically recommended as part of the Year-End Report to allocate interest earnings and other funding, if available. No additional contributions are assumed as part of this Biennial Budget. The Proposed Budget also includes a Development Fee Reserve ($1.5 million in FY 2023/24 and FY 2024/25) that was established in FY 2022/23 to transition new development funds. In FY 2023/24, $500,000 of this reserve is used to support the new Fire Development Services Fund. A Budget Balancing Reserve was also established at the $2.0 million level in FY 2022/23; this reserve totals $0.9 million in FY 2023/24 ($1.1 million was used to balance the budget in FY 2023/24) and $2.0 million in FY 2024/25.
147
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENT OF SOURCES AND USES OF FUNDS GENERAL FUND | GENERAL FUND (001)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 4,817,658 4,445,953 4,445,953 4,445,953 4,445,953 Budget Stabilization Reserve 56,805,262 52,878,278 52,878,278 45,847,152 45,847,152 Capital Projects Reserve 5,335,223 6,719,508 6,719,508 6,526,137 6,132,292 Reserve for Programmed Capital Projects 11,038,674 3,151,081 3,151,081 5,284,314 986,657 Development Fee Program Reserve 0 0 0 2,000,000 1,500,000 Building Inspection Reserve 17,939,250 0 0 0 0
Advanced Planning Fee 741,694 2,939,765 2,939,765 2,879,765 2,649,365 Technology Fee Reserve 1,367,900 2,353,804 2,353,804 1,925,791 1,925,791 Land Sale Reserve 24,120,766 23,892,284 23,892,284 18,481,037 18,481,037 Pension Stabilization Reserve 23,978,098 21,367,474 21,367,474 21,367,474 21,367,474 Historical Preservation Reserve 91,402 92,754 92,754 92,754 92,754 FY 2023/24 Budget Balancing Reserve 0 0 0 2,000,000 911,944 Unrestricted 9,069,620 21,453,736 21,453,736 0 0
Total Beginning Fund Balance 155,305,547 139,294,637 139,294,637 110,850,377 104,340,419 Revenue
Property Taxes - Secured 71,962,716 72,381,000 78,800,000 82,900,000 86,616,000 Property Taxes - Unsecured 2,667,841 2,880,000 2,835,000 2,900,000 2,929,000 Sales Tax 56,030,405 59,400,000 59,400,000 59,600,000 61,400,000 Public Safety Sales Tax 871,251 773,000 773,000 924,000 952,000 Documentary Transfer Tax 2,356,076 1,480,000 1,480,000 1,600,000 1,632,000 Transient Occupancy Tax 10,812,400 12,600,000 12,600,000 21,275,000 23,650,000 Franchise Taxes 4,632,522 4,780,000 4,780,000 5,150,000 5,300,000 Rents 9,763,118 11,336,766 11,336,766 13,627,660 15,150,269 State Revenues 311,585 250,000 250,000 262,000 262,000
Other Agencies Revenues 2,685,020 60,000 60,000 258,000 258,000 Licenses and Permits 4,738,855 3,855,000 3,500,000 8,594,000 8,806,000 Fines and Penalties 431,099 1,615,000 600,000 1,225,000 1,230,000 Other Fees for Services 36,375,116 38,603,245 38,603,245 38,067,896 39,253,418 Interest 827,866 2,532,000 2,532,000 3,500,000 3,708,000 Silicon Valley Power Transfer 27,259,168 26, 170,000 26,170,000 32,000,000 34,000,000 Other Revenue 815,529 189,099 189,099 180,000 180,000
Total Revenue 232,540,567 238,905,110 243,909,110 272,063,556 285,326,687 Transfers From
Building Development Services Fund 163,362 179,036 179,036 175,725 185,793 Building Special Programs and Training Fund 1,750 1,765 1,765 1,765 1,765
148
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENT OF SOURCES AND USES OF FUNDS GENERAL FUND | GENERAL FUND (001)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Transfers From
Convention Center Capital Fund 40,0000000
Convention Center Maintenance District Fund 383,097 193,552 193,552 0 0 Electric Utility Fund 1,059,733 1,229,573 1,229,573 349,749 373,736 Fire Department Capital Fund 236 61,054 61,054 0 0
General Government Capital Fund 460 6,915 6,915 0 0
Other City Departments Operating Grant Trust
Fund
10,000 101,196 101,196 0 0
Parks and Recreation Capital Fund 3,308,341 5,598,215 5,598,215 0 0 Patrick Henry Drive Infrastructure
Improvement Fund
0 0 0 69,205 0
Prefunded Plan Review Fund 13,1010000
Public Buildings Capital Fund 1 ,002,6730000
Public Works Capital Projects Management
Fund
364,739 60,420 60,420 0 0
Storm Drain Capital Fund 2,115,134 1,493,301 1,493,301 1,454,000 1,454,000 Streets and Highways Capital Fund 44,596 130,921 130,921 0 0 Tasman East Infrastructure Improvement Fund 1 75,7570000 Vehicle Replacement Fund 960,000 960,000 960,000 149,600 0 Total Transfers From 9,642,979 10,015,948 10,015,948 2,200,044 2,015,294 Total Source of Funds 397,489,093 388,215,695 393,219,695 385,113,977 391,682,400 Expenditures
Salaries 94,846,522 132,378,106 132,378,106 128,502,867 132,883,631 Retirement - Safety 32,084,531 36,514,227 36,514,227 36,479,753 38,834,838 Retirement - Miscellaneous 17,489,354 19,616,011 19,616,011 18,576,594 19,671,347 Other Benefits 17,033,746 20,572,469 20,572,469 24,039,179 25,104,332 Materials/Services/Supplies 24,850,597 33,361,857 33,361,857 34,094,413 35,149,805 Interfund Services 22,857,269 24,877,371 24,877,371 27,435,591 28,057,143 Capital Outlay 63,339 321,900 321,900 0 37,000
Total Expenditures 209,225,358 267,641,941 267,641,941 269,128,397 279,738,096
149
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENT OF SOURCES AND USES OF FUNDS GENERAL FUND | GENERAL FUND (001)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Tra nsfe rs To
Building Development Services Fund 2 2,347,6560000
Cemetery Fund 850,000 870,000 870,000 796,000 823,000
Cemetery Capital Fund 8,409 9,225 9,225 0 0
Convention Center Maintenance District Fund 771,349 842,700 842,700 805,383 805,383 Downtown Parking Maintenance District Fund 0 0 0 137,030 144,650 Electric Utility Capital Fund 3 30,0000000
Engineering Operating Grant Trust Fund 55,753 227,611 227,611 0 0 Fire Department Capital Fund 837,110 661,766 661,766 427,374 234,374 Fire Development Services Fund 0 0 0 500,000 0
Fire Operating Grant Trust Fund 63 0 0 626,000 770,000
General Government Capital Fund 720,283 1,769,551 1,769,551 90,283 40,283 Library Department Capital Fund 7,872 281,831 281,831 0 0 Library Operating Grant Trust Fund 1 560000
Other City Departments Operating Grant Trust
Fund
534,2750000
Parks and Recreation Capital Fund 2,343,117 227,529 227,529 258,941 276,181 Parks and Recreation Operating Grant Trust
Fund
3,445 3,445 3,445 27,445 27,445
Patrick Henry Driv e Infrastructure
Improvement Fund
0 0 69,205 0 0
Police Operating Grant Trust Fund 22,768 38,424 38,424 0 0 Prefunded Plan Review Fund 0 60,000 60,000 0 0
Public Buildings Capital Fund 397,953 1,445,532 1,445,532 1,590,019 180,272 Public Facilities Financing Corporation Fund 2,501,439 1,402,275 1,402,275 1,402,440 1,405,940 Solid Waste Utility Fund 33,600 35,364 35,364 35,364 35,364 Special Liability Insurance Fund 5 ,200,0000000
Sports and Open Space Authority Fund 0 6,000 6,000 10,000 10,200 Storm Drain Capital Fund 600,411 973,623 973,623 872,414 99,633 Streets and Highways Capital Fund 10,589,129 3,791,464 3,791,464 4,066,468 2,868,147 Tasman East Infrastructure Improvement Fund 0 11,832 11,832 0 0 Vehicle Replacement Fund 814,310 2,000,000 2,000,000 0 0 Total Transfers To 48,969,098 14,658,172 14,727,377 11,645,161 7,720,872
150
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENT OF SOURCES AND USES OF FUNDS GENERAL FUND | GENERAL FUND (001)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Ending Fund Balance
Encumbrance Carryover 4,445,953 4,445,953 4,445,953 4,445,953 4,445,953 Budget Stabilization Reserve 52,878,278 40,843,152 45,847,152 45,847,152 45,847,152 Capital Projects Reserv e 6,719,508 6,595,342 6,526,137 6,132,292 6,132,292 Reserve for Programmed Capital Projects 3,151,081 5,284,314 5,284,314 986,657 2,000 Development Fee Program Reserve 2,000,000 2,000,000 1,500,000 1,500,000 Advanced Planning Fee 2,939,765 2,879,765 2,879,765 2,649,365 2,401,049 Technology Fee Reserve 2,353,804 1,925,791 1,925,791 1,925,791 1,925,791 Land Sale Reserve 23,892,284 18,481,037 18,481,037 18,481,037 18,481,037 Pension Stabilization Reserve 21,367,474 21,367,474 21,367,474 21,367,474 21,367,474 Historical Preservation Reserve 92,754 92,754 92,754 92,754 92,754 FY 2023/24 Budget Balancing Reserve 0 2,000,000 2,000,000 911,944 2,027,930 Unrestricted 21,453,7360000
Total Ending Fund Balance 139,294,637 105,915,582 110,850,377 104,340,419 104,223,432 Total Use of Funds 397,489,093 388,215,695 393,219,695 385,113,977 391,682,400
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Special Revenue
Funds and Other Funds
153
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154
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS
SPECIAL REVENUE FUNDS AND OTHER FUNDS
Special Revenue Funds are established to account for specific revenue sources that are legally restricted or committed to particular purposes. The City of Santa Clara has vari ous revenue sources that requi re separate Special Revenue Funds to be set up. The Other Funds relate to special assessments funds.
American Rescue Plan Act (ARPA) Fund (102)
The American Rescue Plan Act (ARPA) Fund was established in FY 2021/22 to account for Fire Department and Police Department expenditures that are eligible to be funded via f ederal ARPA funds. As this was one-time funding, there is no further activity recorded in this fund.
Bridge Maintenance District #2 Fund (463)
The Bridge District #2 Fund sets aside revenue received through the apportionment of secured property tax as well as the RDA revenue distribution. This funding is then transferred to the Streets and Highways Capital Fund to cover costs associated with the Bridge Maintenance Program project.
Building Development Services Fund (155)
The Building Development Services Fund was established in FY 2021/22 to account for building development-related fee revenue and associated building development services costs. The Building-related revenues and expenditures were previously reflected in the General Fund.
Building Special Programs and Training Fund (220)
This fund was formerly the Certified Access Specialist (CASp) Certification and Training Fund but was retitled to incorporate additional changes to the fund starting in FY 2021/22. The fund now incorporates Building Seismic/Strong Motion Fees and Building Standard Fees, in addition to CASp fees. All three revenue streams are related to state- mandated building permit fee surcharges (Building Standard and Seismic) or from the City’s business license tax (CASp) and are for specific uses such as updating building code manuals or training related to updates in accessibility designs.
City Affordable Housing Fund (165)
The City Affordable Housing Fund accounts for the City’s Below-Market Price Purchase Program, which helps low- and moderate-income families achieve the goal of homeownership. This fund promotes and facilitates the construction and retention of affordable housing, fulfilling State mandates to produce housing for all income levels. Revenues in the City Affordable Housing Fund are received from developer in-lieu fees, principal, and interest repayments on housing loans, as well as interest income on pooled investments.
Community Facilities District No. 2019-1 (Lawrence Station) Fund (027)
A resolution was adopted by Council in March 2019 to form a new Community Facilities District Fund (CFD) to finance maintenance of roadways, parks, parking spaces and enf orcement, landscaped parkways and medians, trails, a highway overpass and a community clubhouse and garden to be located within the development at Lawrence Station. In accordance with the resolution, a special tax is levied on the properties located within the CFD. These special taxes will be used to fund the authorized public se rvices. Pursuant to Report to Council 19-249, the Fund will also maintain additional funding necessar y to replace facilities near end- of-service life (straight line depreciation of 15 years) in a capital reserve of 20%. The property assessments increase annually by Consumer Price Index (CPI).
155
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS Convention Center Maintenance District Fund (026)
This fund provides maintenance and landscaping to the co mmon grounds within the Santa Clara Convention Center Complex. Funds are received by means of a Special Benefit s Assessment levied against the property owners in the respective districts. This fund's expenditure budget is determined using fee estimates for cost recovery.
Developer Traffic Payments Fund (124)
Previously named the “Traffic Fair Share Fund,” this fund was established in FY 2020/21 and is managed by the Department of Public Works. The Developer Traffic Payments Fund is funded by developer contributions collected for specific jurisdictions and locations. Funding is allotted to non-City agencies for eligible projects or transfers to a capital project.
Downtown Parking Maintenance District Fund (025)
The purpose of the Downtown Parking Maintenance District is to maintain the grounds of the Franklin Square complex.
The Franklin Square complex is bounded by Monroe Street to the west, Jackson Street to the east, Benton Street to the north, and Homestead Road to the south. Maintenance of the landscape infrastructure is paid for by the General Fund. Extraordinary repairs to the asphalt parking lot and concrete walkways are funded by property owner assessments that are capped at $14,200 per year.
Endowment Care Fund (077)
This fund holds the non-expendable account of the fees collected from cemetery patrons. Interest earned from the cash maintained is contributed for the current maintenance of the cemetery.
Engineering Operating Grant Trust Fund (144)
This fund accounts for revenues received from other governmental agencies that are designated for specific uses in the Community Development Department. Grants are appropriated as they are received by the Department and approved by the City Council.
Expendable Trust Fund (079)
The Expendable Trust Fund accounts for assets held in a trustee capacity where the principal and income may be expended in the course of the fund’s restricted/designated operations. Funds are appropriated as they are received by departments and approved by the City Council.
Fire Development Services Fund (158)
The Fire Development Services Fund is proposed for FY 2023/24 to account for fire dev elopment-related fee revenue and associated fire development services costs. The Fire-related revenues and expenditures were previously reflected in the General Fund.
Fire Operating Grant Trust Fund (178)
This fund tracks revenues from other governmental agencies received by the Fire Department for fire safety and medical services activities. The grants are provided by federal, state and County agencies. Grants are appropriated as they are received by the Fire Department and approved by the City Council.
156
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS Gas Tax Fund (121)
The Gas Tax Fund accounts for revenues and expenditures re ceived from the State of California under Street and Highway Code Sections 2105, 2106, and 2107. Gas tax is imposed by the State as a per-gallon excise tax on gasoline and diesel fuel. Cities and counties receive an allocati on from the State based on population and the proportion of registered vehicles. This funding is restricted for street maintenance, construction, and a limited amount for engineering.
Housing and Urban Development Fund (562)
The City of Santa Clara receives annual funds from the U.S. Department of Housing and Urban Development (HUD) to administer the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs.
The CDBG program funds various nonprofit agencies and other City departments to implement services that benefit low- and moderate-income persons. The HOME program funds a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. Grantees are generally selected through a competitiv e process and provide such services as senior services, homeless outreach, housi ng rehabilitation, ac cessibility improvement and code enforcement. The City currently dedicates HOME funds for the Tenant-Based Rental Assistance (TBRA) program.
Housing Authority Fund (164)
The Santa Clara Housing Authority (SCHA) was established by the City Council to assume responsibility for managing and monitoring housing assets from the dissolution of t he Redevelopment Agency (RDA). SCHA also assumes the responsibility for housing loans, which provide affordable housing and were made under various programs, for qualifying individuals and groups. The SCHA receives its main source of revenues from program income, which is used to support loan monitoring, administration, and other programs and projects of the Housing and Community Services Division of the Community Development Department.
Housing Successor Agency Fund (169)
All California Redevelopment Agencies (RDA) were dissolved on February 1, 2012. Following the dissolution, the City of Santa Clara was designated as the Housing Successor to the former RDA, responsible for paying off the former RDA’s existing debts, disposing of the former RDA’s properties and assets to help pay off debts, returning revenues to the local government entities that receive property taxes and winding down the affairs of the former Redevelopment Agency. The City has also elected to retain the former RDA’s housing functions, including retaining all of the housing assets, rights, power, duties, obligations and functions previously performed by the RDA in administering its Low and Moderate Income Housing Fund.
Library Donations Trust Fund (072)
This fund accounts for donations that are received and accepted by the City of Santa Clara’s Library Department. These donations are for designated uses. Donations are appropriat ed as they are received by the Library Department and approved by the City Council.
Library Operating Grant Trust Fund (112)
This fund accounts for revenues received from other governmental agencies that are designated for specific uses in the Library Department. Grants are appropriated as they are received by the Library Department and approved by the City Council.
157
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS Other City Departments Operating Grant Trust Fund (101)
The Other City Departments Operating Grant Trust Fund accounts for any financial award given by the federal, State, or other local government to the City for Citywide eligible operating programs. Grants that are designated for department- specific functions are deposited into the respective departments’ operating grant trust fund. Grants are appropriated as they are received by departments and approved by the City Council.
Parks and Recreation Operating Grant Trust Fund (111)
The Senior Nutrition Program provides a congregate meal setting where seniors can improve their health through balanced meals and socialization and is funded through a grant from the Santa Clara County Social Services Agency’s Senior Nutrition Program and Community Development Block Grant funds. Seniors are encouraged to access the many services available at the Senior Center while on site and are given the opportunity to engage in Health & Wellness programs at the Senior Center. Grants are appropriated as they are received by the Parks and Recreation Department and approved by the City Council.
Perpetual Care Fund (076)
This fund accounts for current fees collec ted from cemetery patrons for maintenan ce in perpetuity of the Mission City Memorial Park when the facility reaches full capacity. Interest earned from the cash maintained is contributed for the current maintenance of the cemetery.
Police Operating Grant Trust Fund (177)
This fund tracks revenues from other governmental agencies received by the Police Department for law enforcement activities. The grants are predominantly provided by the State with a smaller porti on received from the federal government. Grants are appropriated as they are received by the Police Department and approved by the City Council.
Prefunded Plan Review Fund (157)
Before any major real estate development project moves fo rward to construction, extensive studies are conducted (environmental, economic, and traffic) to ensure that that the project’s impact on the community is well understood. The cost of these studies is generally paid for by developers with the funding provided to cities to ensure proper oversight of this process. This fund, established in FY 2020/21, accounts for this activity.
Public Donations Fund (067)
The Public Donations Fund accounts for various donations the City receives from the public that are designated for specific uses. Per the City’s Donation Policy, the City Manager is authorized to make funding available to departments for donations valued under $100,000. Donatio ns of $100,000 or greater are approp riated as they are received by departments and approved by the City Council.
158
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS Public, Educational, and Governmental Fee Fund (221)
This fund accounts for the Public, Educational, and Governmental (PEG) fees the City receives from telecommunication companies in accordance with the Cable Communication s Act of 1984 and the Digital Infrastructure and Video Competition Act of 2006. PEG channels broadcast public meetings, news conferences and educational programming about City departments and programs as well as government-sponsored community events. PEG fees can be used for capital-related expenses including video production and streaming equipment as well as television monitoring technology and technical support. These funds can also be used for the renovation and construction of facilities such as Council chambers, public meeting rooms and recording spaces.
Road Maintenance and Rehabilitation (SB1) Fund (122)
The Road Repair and Accountability Act of 2017 (Senate Bill 1) is a significant investment in California’s transportation system which was signed into law on April 28, 2017. The funding from this investment must be used to fix roads, freeways, and bridges in communities across California, putting more dollars towards transit and safety. The majority of this revenue is from the Road Maintenance and Rehabilitation Account (RMRA), where cities have to prioritize repairing their existing infrastructure before addressing other transportation needs.
Traffic Mitigation Fund (123)
The Traffic Mitigation Fee is levied to fund improvements or pr ograms to mitigate the City’s traffic problems that result from development projects.
The following section details the City of Santa Clara’s Special Revenue Funds and Other Funds’ Statements of Sources and Uses and the Proposed Budget for Fiscal Year 2023/24 and Fiscal Year 2024/25.
159
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | AMERICAN RESCUE PLAN ACT
(ARPA) FUND (102)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
U n r e s t r i c t e d 00000
Total Beginning Fund Balance 0 0 0 0 0
Revenue
Other Revenue 26,231,326 0 0 0 0
Total Revenue 26,231,326 0 0 0 0
Total Source of Funds 26,231,326 0 0 0 0
Expenditures
Fire
Salaries 11,314,440 0 0 0 0
Police
Salaries 14,916,886 0 0 0 0
Total Expenditures 26,231,326 0 0 0 0
Ending Fund Balance
Unrestricted 00000
Total Ending Fund Balance 0 0 0 0 0
Total Use of Funds 26,231,326 0 0 0 0
160
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | BRIDGE MAINTENANCE DISTRICT
#2 FUND (463)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Unrestricted 132,965 148,017 148,017 148,017 148,017
Total Beginning Fund Balance 132,965 148,017 148,017 148,017 148,017 Revenue
Taxes - Ad Valorem 94,729 80,000 80,000 80,000 80,000
Other Agencies Revenue 323 0 0 0 0
Total Revenue 95,052 80,000 80,000 80,000 80,000
Total Source of Funds 228,017 228,017 228,017 228,017 228,017 Transfers To
Streets and Highways Capital Fund 80,000 80,000 80,000 80,000 80,000 Total Transfers To 80,000 80,000 80,000 80,000 80,000
Ending Fund Balance
Unrestricted 148,017 148,017 148,017 148,017 148,017
Total Ending Fund Balance 148,017 148,017 148,017 148,017 148,017 Total Use of Funds 228,017 228,017 228,017 228,017 228,017 161
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | BUILDING DEVELOPMENT
SERVICES FUND (155)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 0 1,608,625 1,608,625 1,608,625 1,608,625 Unrestricted (2,156) 27,357,189 27,357,189 25,207,035 26,943,981 Total Beginning Fund Balance (2,156) 28, 965,814 28,965,814 26,815,660 28,552,606 Revenue
License Permit 10,818,884 8,198,000 8,250,000 8,790,000 9,098,000 Other Fees for Services 7,181,833 5,175,000 5,175,000 6,321,000 6,542,000 Other Revenue 2,991 445,000 1,000 200,000 200,000
Interest 0 646,458 646,458 300,000 324,000
Total Revenue 18,003,708 14,464,458 14,072,458 15,611,000 16,164,000 Transfers From
General Fund 22,347,65 60000
Total Transfers From 22,347,65 60000
Total Source of Funds 40,349,208 43,430,272 43,038,272 42,426,660 44,716,606 Expenditures
Salaries 4,616,090 6,438,904 6,438,904 6,500,511 7,257,209 Retirement and Benefits 2,494,789 3,259,834 3,259,834 3,619,616 4,095,866 Materials/Services/Supplies 2,160,221 4,317,929 4,317,929 1,878,886 1,590,060 Services From Other Funds - Cost
Allocation Plan
1,117,637 1,139,990 1,139,990 1,031,044 1,051,665
Interfund Services 822,558 878,182 878,182 659,535 657,596 Total Expenditures 11,211,295 16,034,839 16,034,839 13,689,592 14,652,396 Transfers To
7,000 7,000 7,000 7,000 7,000
163,36
2 179,036 179,036 175,725 185,793
Building Special P rograms an d Traini ng Fund
General F und
General G overnment C apital F und 1,737 1,737 1,737 1,737 1,737 Total Transfers To 172,099 187,773 187,773 184,462 194,530 162
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | BUILDING DEVELOPMENT
SERVICES FUND (155)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Ending Fund Balance
Encumbrance Carryover 1,608,625 1,608,625 1,608,625 1,608,625 1,608,625 Unrestricted 27,357,189 25,599,035 25,207,035 26,943,981 28,261,055 Total Ending Fund Balance 28,965,814 27,207,660 26,815,660 28,552,606 29,869,680 Total Use of Funds 40,349,208 43,430,272 43,038,272 42,426,660 44,716,606
163
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | BUILDING SPECIAL PROGRAMS
AND TRAINING FUND (220)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
CASp Reserve - Restricted 35,585 56,842 56,842 56,842 56,842 Seismic Admin Reserve - Restricted 52,036 109,581 109,581 109,581 109,581 Building Standard Reserve - Restricted 90,671 53,751 53,751 55,381 55,381 Total Beginning Fund Balance 178,292 220,174 220,174 221,804 221,804 Revenue
License Permit 64,002 37,995 37,995 37,995 37,995
Seismic Admin Fee 0 14,000 14,000 0 0
Building Standard Fee 0 4,400 4,400 0 0
Total Revenue 64,002 56,395 56,395 37,995 37,995
Transfers From
Building Development Services Fund 7,000 7,000 7,000 7,000 7,000 Total Transfers From 7,000 7,000 7,000 7,000 7,000
Total Source of Funds 249,294 283,569 283,569 266,799 266,799 Expenditures
Salaries 17,385 30,000 30,000 22,020 22,020
Materials/Services/Supplies 9,985 30,000 30,000 21,210 21,210 Total Expenditures 27,370 60,000 60,000 43,230 43,230
Transfers To
General Fund 1,750 1,765 1,765 1,765 1,765
Total Transfers To 1,750 1,765 1,765 1,765 1,765
Ending Fund Balance
CASp Reserve - Restricted 56,842 56,842 56,842 56,842 56,842 Seismic Admin Reserve - Restricted 109,581 109,581 109,581 109,581 109,581 Building Standard Reserve - Restricted 53,751 55,381 55,381 55,381 55,381 Total Ending Fund Balance 220,174 221,804 221,804 221,804 221,804 Total Use of Funds 249,294 283,569 283,569 266,799 266,799
164
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | CITY AFFORDABLE HOUSING
FUND (165)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 1,421,539 1,108,582 1,108,582 1,108,582 1,108,582 Unrestricted 8,759,602 7,716,439 7,716,439 10,488,576 10,095,739 Total Beginning Fund Balance 10,181,141 8,825,021 8,825,021 11,597,158 11,204,321 Revenue
Other Fees for Services 30,688 32,000 32,000 57,462 58,919 Other Agencies Revenue 16,611 0 0 0 0
Interest 174,583 174,583 174,583 174,583 174,583
Other Revenue 3,507,497 6,956,117 6,956,117 934,675 934,675 Total Revenue 3,729,379 7,162,700 7,162,700 1,166,720 1,168,177 Total Source of Funds 13,910,520 15,987,721 15,987,721 12,763,878 12,372,498 Expenditures
Salaries 239,525 229,371 229,371 354,289 372,598
Retirement and Benefits 108,188 100,726 100,726 155,955 164,098 Materials/Services/Supplies 606,063 735,918 735,918 704,618 713,253 Services From Other Funds - Cost
Allocation Plan
24,067 24,548 24,548 43,005 43,865
Interfund Services 376 0 0 1,690 1,672
Capital Outlay 4,107,280 3,300,000 3,300,000 300,000 300,000 Total Expenditures 5,085,499 4,390,563 4,390,563 1,559,557 1,595,486 Ending Fund Balance
Encumbrance Carryover 1,108,582 1,108,582 1,108,582 1,108,582 1,108,582 Unrestricted 7,716,439 10,488,576 10,488,576 10,095,739 9,668,430 Total Ending Fund Balance 8,825,021 11,597,158 11,597,158 11,204,321 10,777,012 Total Use of Funds 13,910,520 15,987,721 15,987,721 12,763,878 12,372,498 165
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | COMMUNITY FACILITIES
DISTRICT NO. 2019-1 (LAWRENCE STATION) FUND (027)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 57,842 180,782 180,782 180,782 180,782 Capital Reserve 62,566 65,651 128,217 200,767 277,382
Unrestricted 181,579 369,887 307,321 235,118 168,307
Total Beginning Fund Balance 301,987 616,320 616,320 616,667 626,471 Revenue
Special Tax Revenues 328,257 362,748 362,748 383,077 450,298 Total Revenue 328,257 362,748 362,748 383,077 450,298
Total Source of Funds 630,244 979,068 979,068 999,744 1,076,769 Expenditures
Administration 0 3,845 3,845 3,960 4,079
Facilities 0 117,420 117,420 120,942 124,570
Landscaped Parkways 0 29,367 29,367 30,248 31,155
Parking Enforcement 0 92,000 92,000 94,760 97,603
Parking Space Maintenance 0 3,504 3,504 3,610 3,718
Parks 13,924 113,000 113,000 116,390 119,882
Roadways 0 3,265 3,265 3,363 3,464
Total Expenditures 13,924 362,401 362,401 373,273 384,471 Ending Fund Balance
Encumbrance Carryover 180,782 180,782 180,782 180,782 180,782 Capital Reserve 128,217 65,651 200,767 277,382 367,442
Unrestricted 307,321 370,234 235,118 168,307 144,074
Total Ending Fund Balance 616,320 616,667 616,667 626,471 692,298 Total Use of Funds 630,244 979,068 979,068 999,744 1,076,769
166
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | CONVENTION CENTER
MAINTENANCE DISTRICT FUND (026)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Unrestricted 569,103 399,028 399,028 145,000 0
Total Beginning Fund Balance 569,103 399,028 399,028 145,000 0 Revenue
Other Fees for Services 926,770 1,035,419 1,035,419 968,736 968,736 Interest 9,569 0 0 0 0
Total Revenue 936,339 1,035,419 1,035,419 968,736 968,736 Transfers From
General Fund 771,349 842,700 842,700 805,383 805,383
Total Transfers From 771,349 842,700 842,700 805,383 805,383 Total Source of Funds 2,276,791 2,277,147 2,277,147 1,919,119 1,774,119 Expenditures
Salaries 18,182 18,802 18,802 19,412 20,019
Retirement and Benefits 9,279 10,642 10,642 9,887 10,158 Materials/Services/Supplies 1,313,996 1,720,869 1,575,869 1,690,227 1,538,584 Services From Other Funds - Cost
Allocation Plan
55,632 56,745 56,745 140,429 143,238
Interfund Services 97,577 121,061 121,061 59,164 62,120 Refund to Hyatt 0 62,587 62,587 0 0
Refund to Techmart 0 92,889 92,889 0 0
Total Expenditures 1,494,666 2,083,595 1,938,595 1,919,119 1,774,119 Transfers To
General Fund 383,097 193,552 193,552 0 0
Total Transfers To 383,097 193,552 193,552 0 0
Ending Fund Balance
Unrestricted 399,028 0 145,000 0 0
Total Ending Fund Balance 399,028 0 145,000 0 0
Total Use of Funds 2,276,791 2,277,147 2,277,147 1,919,119 1,774,119
167
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | DEVELOPER TRAFFIC PAYMENTS
FUND (124)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Restricted Fund Balance 7,941,970 8,677,690 8,677,690 8,677,690 8,677,690 Total Beginning Fund Balance 7,941,970 8,677,690 8,677,690 8,677,690 8,677,690 Revenue
Other Revenue 13,000 1,108,500 0 0 0
Total Revenue 13,000 1,108,500 0 0 0
Transfers From
Streets and Highways Capital Fund 722,720 0 0 0 0
Total Transfers From 722,720 0 0 0 0
Total Source of Funds 8,677,690 9,786,190 8,677,690 8,677,690 8,677,690 Transfers To
Streets and Highways Capital Fund 0 1,108,500 0 0 0
Total Transfers To 0 1,108,500 0 0 0
Ending Fund Balance
Restricted Fund Balance 8,677,690 8,677,690 8,677,690 8,677,690 8,677,690 Total Ending Fund Balance 8,677,690 8,677,690 8,677,690 8,677,690 8,677,690 Total Use of Funds 8,677,690 9,786,190 8,677,690 8,677,690 8,677,690 168
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | DOWNTOWN PARKING
MAINTENANCE DISTRICT FUND (025)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
E n c u m b r a n c e C a r r y o v e r 7 , 9 4 80000
Reserve for Maintenance 144,324 156,961 156,961 171,161 185,361 Unrestricted 581,695 463,668 463,668 326,147 326,187
Total Beginning Fund Balance 733,967 620,629 620,629 497,308 511,548 Revenue
Interest 2,182 1,938 1,938 2,181 2,200
Other Fees for Services 10,455 12,262 12,262 12,019 12,000 Total Revenue 12,637 14,200 14,200 14,200 14,200
Transfers From
General Fund 0 0 0 137,030 144,650
Total Transfers From 0 0 0 137,030 144,650
Total Source of Funds 746,604 634,829 634,829 648,538 670,398 Expenditures
Salaries 27,967 47,440 47,440 42,972 46,714
Retirement and Benefits 28,253 28,631 28,631 31,870 34,298 Materials/Services/Supplies 45,979 39,877 39,877 41,063 42,272 Services From Other Funds - Cost
Allocation Plan
15,275 15,581 15,581 14,539 14,830
Interfund Services 8,501 5,992 5,992 6,546 6,495
Total Expenditures 125,975 137,521 137,521 136,990 144,609 Ending Fund Balance
E n c u m b r a n c e C a r r y o v e r 00000
Reserve for Maintenance 156,961 171,161 171,161 185,361 199,561 Unrestricted 463,668 326,147 326,147 326,187 326,228
Total Ending Fund Balance 620,629 497,308 497,308 511,548 525,789 Total Use of Funds 746,604 634,829 634,829 648,538 670,398 169
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | ENDOWMENT CARE FUND (077)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Unrestricted 1,894,640 2,149,392 2,149,392 2,281,392 2,381,392 Total Beginning Fund Balance 1,894,640 2,149,392 2,149,392 2,281,392 2,381,392 Revenue
Other Fees for Services 254,752 90,000 132,000 100,000 100,000 Interest 29,663 28,000 28,000 30,000 30,000
Total Revenue 284,415 118,000 160,000 130,000 130,000
Total Source of Funds 2,179,055 2,267,392 2,309,392 2,411,392 2,511,392 Trans fers To
Cemetery Fund 29,663 28,000 28,000 30,000 30,000
Total Transfers To 29,663 28,000 28,000 30,000 30,000
Ending Fund Balance
Unrestricted 2,149,392 2,239,392 2,281,392 2,381,392 2,481,392 Total Ending Fund Balance 2,149,392 2,239,392 2,281,392 2,381,392 2,481,392 Total Use of Funds 2,179,055 2,267,392 2,309,392 2,411,392 2,511,392
170
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | ENGINEERING OPERATING GRANT
TRUST FUND (144)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 174,221 140,611 140,611 0 0
Unrestricted (423,974) (375,969) (375,969) 0 0
Total Beginning Fund Balance (249,753) (235,358) (235,358) 0 0 Revenue
Other Agencies Revenue 0 911,834 911,834 0 0
Total Revenue 0 911,834 911,834 0 0
Transfers From
General Fund 55,753 227,611 227,611 0 0
Total Transfers From 55,753 227,611 227,611 0 0
Total Source of Funds (194,000) 904,087 904,087 0 0
Expenditures
Local Early Action Planning 7,748 491,403 491,403 0 0
One Bay Area Grant 15-16 City Match 5,820 0 0 0 0
One Bay Area Grant 15-16 27,791 0 0 0 0
Regional Early Action Planning 0 102,684 102,684 0 0
Tasman East Specific Plan 0 310,000 310,000 0 0
VRF Countywide ITS 15-16 00000
Total Expenditures 41,359 904,087 904,087 0 0
Ending Fund Balance
Encumbrance Carryover 140,611 0 0 0 0
Unrestricted (375,970) 0 0 0 0
Total Ending Fund Balance (235,359) 0 0 0 0
Total Use of Funds (194,000) 904,087 904,087 0 0
171
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | EXPENDABLE TRUST FUND (079)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 22,983 25,352 25,352 25,352 25,352 Unrestricted 1,236,029 994,646 994,646 0 0
Total Beginning Fund Balance 1,259,012 1,019,998 1,019,998 25,352 25,352 Revenue
Grants
Community Development Department 0 49,500 49,500 0 0
Fire Department 9,537 0 0 0 0
Information Technology 19,346 0 0 0 0
Police Department 38,875 0 0 0 0
Public Works 37,319 2,728 2,728 0 0
Total Revenue 105,077 52,228 52,228 0 0
Total Source of Funds 1,364,089 1,072,226 1,072,226 25,352 25,352 Expenditures
City Attorney's Office
Environment Enforcement Fines - City 0 32,189 32,189 0 0 City Manager's Office
ENA - SC Caltrain Station 0 12,974 12,974 0 0
Community Development
Tasman East Contribution 0 49,500 49,500 0 0
Fire
CUPA Administrative Enforcement Order 0 459,274 459,274 0 0 Environment Enforcement Fines - Fire 15,913 59 59 0 0
Fire Prevention 0 1,708 1,708 0 0
Fire - Haz Mat 0 1,598 1,598 0 0
Fire - Cert Grant 0 5,223 5,223 0 0
Fire - EMS Grant 0 2,681 2,681 0 0
OES HM Emergency Prep 0 75,000 75,000 0 0
Training HM Emergency Prep 0 4,133 4,133 0 0
Training Classes 0 2,861 2,861 0 0
Human Resources
Deferred Comp. Revenue Sharing 17,598 0 0 0 0
Information Technology
SVACA Billings - City Depts 19,346 0 0 0 0
172
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | EXPENDABLE TRUST FUND (079)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Expenditures
Library
CLSA - Transaction Based Reimbursement 0 1,770 1,770 0 0 Public Library Foundation 0 17,718 17,718 0 0
Police
Bingo Enforcement Fees 1,959 316,791 316,791 0 0
Seized Asset Funds - Local 0 41 41 0 0
Seized Asset Funds - State 72,255 0 0 0 0
Seized Asset Funds - US Justice 0 5,542 5,542 0 0
Shooting Range Recycled Casings 0 2,320 2,320 0 0
Public Works
Environment Enforcement Fines - Street 0 12,875 12,875 0 0 Seized Asset Funds - Local 0 1,617 1,617 0 0
SVACA Billings - City Depts 34,520 0 0 0 0
Total Expenditures 161,591 1,005,874 1,005,874 0 0
Transfers To
Police Operating Grant Trust Fund 182,500 41,000 41,000 0 0 Total Transfers To 182,500 41,000 41,000 0 0
Ending Fund Balance
Encumbrance Carryover 25,352 25,352 25,352 25,352 25,352 Unrestricted 994,646 0 0 0 0
Total Ending Fund Balance 1,019,998 25,352 25,352 25,352 25,352 Total Use of Funds 1,364,089 1,072,226 1,072,226 25,352 25,352
173
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | FIRE DEVELOPMENT SERVICES
FUND (158)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Unrestricted 0 00 0 325,927
Total Beginning Fund Balance 0 0 0 0 325,927
Revenue
Other Fees for Services 0 00 2,935,000 3,081,750
Total Revenue 0 0 0 2,935,000 3,081,750
Trans fers From
General Fund - Development Fee Reserve 0 00 500,000 0
Total Transfers From 0 0 0 500,000 0
Total Source of Funds 0 0 0 3,435,000 3,407,677
Expenditures
Salaries 0 0 0 1,577,676 1,663,215
Retirement and Benefits 0 0 0 1,016,392 1,076,808
Materials/Services/Supplies 0 0 0 47,568 48,473
Services from Other Funds - Cost 0 0 0 230,941 235,560
Interfund Services 0 0 0 236,496 240,762
Total Expenditures 0 0 0 3,109,073 3,264,818
Ending Fund Balance
Unrestricted 0 0 0 325,927 142,859
Total Ending Fund Balance 0 0 0 325,927 142,859
Total Use of Funds 0 0 0 3,435,000 3,407,677
174
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | FIRE OPERATING GRANT TRUST
FUND (178)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 185,00 00000
Unrestricted (281,018) (64,582) (64,582) 0 0
Total Beginning Fund Balance (96,018) (64,582) (64,582) 0 0 Revenue
Other Agencies Revenue 298,798 1,105,972 542,488 3,380,904 3,743,514 Total Revenue 298,798 1,105,972 542,488 3,380,904 3,743,514 Transfers From
General Fund 63 0 0 626,000 770,000
Total Transfers From 63 0 0 626,000 770,000
Total Source of Funds 202,843 1,041,390 477,906 4,006,904 4,513,514 Expenditures
Assistance to Firefighter FY18/19 City Match 6,829 7,947 7,947 0 0 Assistance to Firefighter FY 18/19 (6,829) 79,472 79,472 0 0 Assistance to Firefighter FY19/20 City Match 0 4,017 4,017 0 0 Assistance to Firefighter FY 19/20 0 40,168 40,168 0 0
Assistance to Firefighter Supplemental City
Match
3,072 202 202 0 0
A s s i s t a n c e t o F i r e f i g h t e r S u p p l e m e n t a l 3 2 , 7 4 50000 Bay Area Urban Security Initiative 2019 185,0000000
California Environmental Protection Agency 0 26,096 26,096 0 0 Emergency Management Performance Grant
2020
2 2 , 4 1 50000
Emergency Medical Services County Patient
Care System
1 5 10000
Emergency Management Performance Grant
2022
0 38,811 38,811 0 0
Emergency Preparedness Grant 0 33,000 33,000 0 0
175
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | FIRE OPERATING GRANT TRUST
FUND (178)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Expenditures
Staffing for Adequate Fire and Emergency
Response
0 563,484 0 4,006,904 4,513,514
State Homeland Security Grant Program
FY18/19
6,223 0 0 0 0
State Homeland Security Grant Program
FY20/21
1,807 248,193 248,193
Urban Search and Rescue Team Training 16,012 0 0 0 0
Total Expenditures 267,425 1,041,390 477,906 4,006,904 4,513,514 Ending Fund Balance
Encumbrance Carryover 0 0 0 0 0
Unrestricted (64,582) 0 0 0 0
Total Ending Fund Balance (64,582) 0 0 0 0
Total Use of Funds 202,843 1,041,390 477,906 4,006,904 4,513,514
176
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | GAS TAX FUND (121)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Unrestricted 1,821,342 1,197,202 1,197,202 2,339,767 1,189,767 Total Beginning Fund Balance 1,821,342 1,197,202 1,197,202 2,339,767 1,189,767 Revenue
State Revenues 2,740,247 3,400,000 3,400,000 3,400,000 3,400,000 Interest 200,030 100,000 200,000 100,000 100,000
Total Revenue 2,940,277 3,500,000 3,600,000 3,500,000 3,500,000 Transfers From
Streets and Highways Capital Fund 382,163 527,565 527,565 0 0 Total Transfers From 382,163 527,565 527,565 0 0
Total Source of Funds 5,143,782 5,224,767 5,324,767 5,839,767 4,689,767 Transfers To
Streets and Highways Capital Fund 3,946,580 2,985,000 2,985,000 4,650,000 2,550,000 Total Transfers To 3,946,580 2,985,000 2,985,000 4,650,000 2,550,000 Ending Fund Balance
Unrestricted 1,197,202 2,239,767 2,339,767 1,189,767 2,139,767 Total Ending Fund Balance 1,197,202 2,239,767 2,339,767 1,189,767 2,139,767 Total Use of Funds 5,143,782 5,224,767 5,324,767 5,839,767 4,689,767
177
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | HOUSING AND URBAN
DEVELOPMENT FUND (562)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 1,745,633 748,708 748,708 748,708 748,708 Restricted Program Income 0 519,419 519,419 00
Unrestricted (749,253) (119,448) (119,448) 1,833,894 1,195,294 Total Beginning Fund Balance 996,380 1, 148,679 1,148,679 2,582,602 1,944,002 Revenue
Other Agencies Revenue 2,869,763 3,664,461 3,664,461 2,996,041 1,398,534 Interest 437 00 00
Other Revenue 537,657 260,000 260,000 110,000 120,000
Total Revenue 3,407,857 3,924,461 3,924,461 3,106,041 1,518,534 Total Source of Funds 4,404,237 5,073,140 5,073,140 5,688,643 3,462,536 Expenditures
CDBG - Public Services 483,971 424,856 424,856 408,910 382,489 COVID Emergency Rental Assistance 919,966 0 200 00
NCIP - CDBG 319,169 563,710 292,377 725,362 610,336
Rebuilding Together Silicon Valley 58,024 150,000 100,927 100,000 100,000 Rehab - Affordable Rental Housing 0 916,394 261,153 721,778 0 Rehab - Public Facilities 0 0 0 163,950 0
Removal of Barriers 0 0 0 0 0
HOME Admin Contracts 106,224 56,576 141,000 53,758 42,570 CHDO Project 0 69,865 0 0 0
Homeless Tenant Based Rental Assistance 1,368,204 788,379 523,820 643,830 383,139 HOME American Rescue Plan Program 0 80,205 80,205 927,053 596,847 Multi-Familly Rental Rehabilitation 0 642,000 642,000 0 0 Total Expenditures 3,255,558 3,691,985 2,466,538 3,744,641 2,115,381 Trans fers To
Parks and Recreation Operating Grant
Trust Fund
0 24,000 24,000 0 0
Total Transfers To 0 24,000 24,000 0 0
178
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | HOUSING AND URBAN
DEVELOPMENT FUND (562)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Ending Fund Balance
Encumbrance Carryover 748,708 748,708 748,708 748,708 748,708 Restriced Program Income 519,419 00 00
Unrestricted (119,448) 608,447 1,833,894 1,195,294 598,447 Total Ending Fund Balance 1,148,679 1,357,155 2,582,602 1,944,002 1,347,155 Total Use of Funds 4,404,237 5,073,140 5,073,140 5,688,643 3,462,536
179
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | HOUSING AUTHORITY FUND (164)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 120,000 97,963 97,963 97,963 97,963 Unrestricted 3,768,627 4,150,197 4,150,197 3,941,152 3,736,454 Total Beginning Fund Balance 3,888,627 4,248,160 4,248,160 4,039,115 3,834,417 Revenue
Interest 59,767 59,767 59,767 11,475 11,000
Other Revenue 470,505 192,728 192,728 241,020 241,496
Total Revenue 530,272 252,495 252,495 252,495 252,496
Total Source of Funds 4,418,899 4,500,655 4,500,655 4,291,610 4,086,913 Expenditures
Salaries 61,295 95,048 95,048 91,802 96,878
Retirement and Benefits 29,615 54,715 54,715 52,699 55,198 Materials/Services/Supplies 35,675 59,100 59,100 59,100 59,100 Interfund Services 173 0 0 915 905
Capital Outlay 43,981 252,677 252,677 252,677 202,500
Total Expenditures 170,739 461,540 461,540 457,193 414,581 Ending Fund Balance
Encumbrance Carryover 97,963 97,963 97,963 97,963 97,963 Unrestricted 4,150,197 3,941,152 3,941,152 3,736,454 3,574,369 Total Ending Fund Balance 4,248,160 4,039,115 4,039,115 3,834,417 3,672,332 Total Use of Funds 4,418,899 4,500,655 4,500,655 4,291,610 4,086,913
180
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | HOUSING SUCCESSOR AGENCY
FUND (169)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 344,361 131,579 131,579 131,579 131,579 Unrestricted 13,895,617 8,197,182 8,197,182 3,585,939 4,019,038 Total Beginning Fund Balance 14,239,978 8,328,761 8,328,761 3,717,518 4,150,617 Revenue
O t h e r F e e s f o r S e r v i c e s 1 , 8 4 50000 Interest 186,771 154,771 154,771 186,771 186,771
Rents 0 32,000 32,000 0 0
Other Revenue 6,334,282 1,119,555 1,119,555 1,119,555 1,119,555 Total Revenue 6,522,898 1,306,326 1,306,326 1,306,326 1,306,326 Total Source of Funds 20,762,876 9,635,087 9,635,087 5,023,844 5,456,943 Expenditures
Salaries 160,452 239,815 239,815 199,770 209,813
Retirement and Benefits 80,632 124,850 124,850 101,583 106,209 Materials/Services/Supplies 470,370 530,200 530,200 530,200 541,000 Services From Other Funds - Cost
Allocation Plan
22,259 22,704 22,704 39,491 40,281
Interfund Services 402 0 0 2,183 2,160
Capital Outlay 11,700,000 5,000,000 5,000,000 0 0
Total Expenditures 12,434,115 5,917,569 5,917,569 873,227 899,463 Ending Fund Balance
Encumbrance Carryover 131,579 131,579 131,579 131,579 131,579 Unrestricted 8,197,182 3,585,939 3,585,939 4,019,038 4,425,901 Total Ending Fund Balance 8,328,761 3,717,518 3,717,518 4,150,617 4,557,480 Total Use of Funds 20,762,876 9,635,087 9,635,087 5,023,844 5,456,943
181
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | LIBRARY DONATIONS TRUST
FUND (072)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Unrestricted 179,733 179,756 179,756 0 0
Total Beginning Fund Balance 179,733 179,756 179,756 0 0 Revenue
Other Revenue 230000
Total Revenue 230000
Total Source of Funds 179,756 179,756 179,756 0 0
Expenditures
City Library Foundation Trust 0 139,444 139,444 0 0
In Memory J.Jaffer 0 1,440 1,440 0 0
In Memory Of M.Dry 0 4,000 4,000 0 0
Library Books 0 1,300 1,300 0 0
Library Tote Bags 0 1,023 1,023 0 0
Literacy Program 0 9,050 9,050 0 0
SCSQ Irvine Contribution 0 22,755 22,755 0 0
Summer Reading 0 744 744 0 0
Total Expenditures 0 179,756 179,756 0 0
Ending Fund Balance
Unrestricted 179,7560000
Total Ending Fund Balance 179,756 0000
Total Use of Funds 179,756 179,756 179,756 0 0
182
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | LIBRARY OPERATING GRANT
TRUST FUND (112)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Unrestricted 28,529 39,276 39,276 0 0
Total Beginning Fund Balance 28,529 39,276 39,276 0 0
Revenue
Other Agencies Revenue 112,392 147,266 147,266 0 0
Total Revenue 112,392 147,266 147,266 0 0
Transfers From
General Fund 1560000
Total Transfers From 1560000
Total Source of Funds 141,077 186,542 186,542 0 0
Expenditures
Adult Literacy Program 19-20 1480000
Adult Literacy Program 20-21 28,1560000
Adult Literacy Program 21-22 51,757 39,268 39,268 0 0
Adult Literacy Program 22-23 0 147,266 147,266 0
Dia De Los Ninos 3820000
PLP Innovation and Technology 20-21 12,1350000
PLP Innovation and Technology 21-22 9,2238800
Total Expenditures 101,801 186,542 186,542 0 0
Ending Fund Balance
Unrestricted 39,2760000
Total Ending Fund Balance 3 9,2760000
Total Use of Funds 141,077 186,542 186,542 0 0
183
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | OTHER CITY DEPARTMENTS
OPERATING GRANT TRUST FUND (101)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 153,386 29,876 29,876 29,876 29,876 Unrestricted 138,343 128,920 128,920 0 0
Total Beginning Fund Balance 291,729 158,796 158,796 29,876 29,876 Revenue
City Manager's Office 949 0 0 0 0
Total Revenue 949 0 0 0 0
Transfers From
General Fund 534,275 0 0 0 0
Total Transfers From 534,275 0 0 0 0
Total Source of Funds 826,953 158,796 158,796 29,876 29,876 Expenditures
City Attorney's Office
COVID-19 6,783 0 0 0 0
Healthy Cities Program - Tobacco Free
Communities
202 0 0 0 0
City Clerk's Office
COVID-19 40 0 0 0 0
City Manager's Office
COVID-19 39,246 0 0 0 0
Healthy Cities Program - Tobacco Free
Communities
226 2,724 2,724 0 0
Community Development Department
COVID-19 793 0 0 0 0
Electric Utility
COVID-19 6,978 0 0 0 0
Finance Department
COVID-19 26,907 0 0 0 0
Fire Department
COVID-19 322,092 0 0 0 0
184
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | OTHER CITY DEPARTMENTS
OPERATING GRANT TRUST FUND (101)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Expenditures
Human Resources Department
C O V I D - 1 9 8 , 0 5 40000
Information Technology Department
C O V I D - 1 9 5 1 10000
Library Department
C O V I D - 1 9 2 , 6 8 20000
Non-Departmental
COVID-19 142,108 25,000 25,000 0 0
Parks & Recreation Department
C O V I D - 1 9 1 0 , 2 6 50000
Police Department
C O V I D - 1 9 7 9 , 4 4 10000
Public Works Department
C O V I D - 1 9 8 60000
Water and Sewer Utilities Department
C O V I D - 1 9 1 1 , 7 4 30000
Total Expenditures 658,157 27,724 27,724 0 0
Transfers To
General Fund 10,000 101,196 101,196 0 0
Total Transfers To 10,000 101,196 101,196 0 0
Ending Fund Balance
Encumbrance Carryover 29,876 29,876 29,876 29,876 29,876 Unrestricted 128,92 00000
Total Ending Fund Balance 158,796 29,876 29,876 29,876 29,876 Total Use of Funds 826,953 158,796 158,796 29,876 29,876
185
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | PARKS AND RECREATION
OPERATING GRANT TRUST FUND (111)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryov er 33,560 0 0 0 0
Unrestricted 97,998 123,091 123,091 123,091 123,091
Total Beginning Fund Balance 131,558 123,091 123,091 123,091 123,091 Revenue
Other Agencies Revenue 176,674 124,918 124,918 124,918 124,918 Total Revenue 176,674 124,918 124,918 124,918 124,918
Transfers From
General Fund 3,445 3,445 3,445 27,445 27,445
Housing and Urban Development Fund 24,000 24,000 24,000 0 0 Total Transfers From 27,445 27,445 27,445 27,445 27,445 Total Source of Funds 335,677 275,454 275,454 275,454 275,454 Expenditures
Salaries 40,320 43,237 43,237 43,237 43,237
Materials/Services/Supplies 172,266 109,126 109,126 109,126 109,126 Total Expenditures 212,586 152,363 152,363 152,363 152,363 Ending Fund Balance
Encumbrance Carryov er 00000
Unrestricted 123,091 123,091 123,091 123,091 123,091
Total Ending Fund Balance 123,091 123,091 123,091 123,091 123,091 Total Use of Funds 335,677 275,454 275,454 275,454 275,454
186
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | PERPETUAL CARE FUND (076)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Unrestricted 38,244 38,244 38,244 38,244 38,244
Total Beginning Fund Balance 38,244 38,244 38,244 38,244 38,244 Revenue
Interest 558 500 500 500 500
Total Revenue 558 500 500 500 500
Total Source of Funds 38,802 38,744 38,744 38,744 38,744 Transfers To
Cemetery Fund 558 500 500 500 500
Total Transfers To 558 500 500 500 500
Ending Fund Balance
Unrestricted 38,244 38,244 38,244 38,244 38,244
Total Ending Fund Balance 38,244 38,244 38,244 38,244 38,244 Total Use of Funds 38,802 38,744 38,744 38,744 38,744
187
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | POLICE OPERATING GRANT
TRUST FUND (177)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 36,532 51,110 51,110 51,110 51,110 Unrestricted 1,433,908 1,598,009 1,598,009 0 0
Total Beginning Fund Balance 1,470,440 1,649,119 1,649,119 51,110 51,110 Revenue
Other Agencies Revenue 352,764 505,987 505,987 0 0
Other Fees for Services 65,997 0 0 0 0
Total Revenue 418,761 505,987 505,987 0 0
Transfers From
General Fund 22,768 38,424 38,424 0 0
Expendable Trust Fund 182,500 41,000 41,000 0 0
Total Transfers From 205,268 79,424 79,424 0 0
Total Source of Funds 2,094,469 2,234,530 2,234,530 51,110 51,110 Expenditures
Abandoned Vehicle Abatement Program 0 174,169 174,169 0 0 Board of State and Community Correction 0 38,544 38,544 0 0 Board of State and Community Correction
2020
64,561 276,676 276,676 0 0
Board of State and Community Correction
2023 0 98,292 98,292 0 0
Cannabis Tax Fund Grant FY 2022 47,702 0 0 0 0
Citizens' Option for Public Safety 17-18 3060000
Citizens' Option for Public Safety 18-19 34,340 168,518 168,518 0 0 Citizens' Option for Public Safety 19-20 25,000 215,080 215,080 0 0 Citizens' Option for Public Safety 20-21 106,457 212,710 212,710 0 0 Citizens' Option for Public Safety 21-22 23,561 276,799 276,799 0 0 Citizens' Option for Public Safety 22-23 0 200,980 200,980 Department of Justice COVID 9,9670000
Edward Byrne Memorial JAG FY17 2890000
Edward Byrne Memorial JAG FY19 12,390 0 0 0 0
Edward Byrne Memorial JAG FY20 12,469 0 0 0 0
Edward Byrne Memorial JAG FY21 15,931 0 0 0 0
188
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | POLICE OPERATING GRANT
TRUST FUND (177)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Expenditures
National Incident-Based Reporting System (6,911) 3,923 3,923 0 0 Office of Traffic Safety 2022 37,561 37,439 37,439 0 0
Seized Asset Funds 61,727 262,890 262,890 0 0
West Valley College Training Program 0 217,400 217,400 0 0 Total Expenditures 445,350 2,183,420 2,183,420 0 0
Ending Fund Balance
Encumbrance Carryover 51,110 51,110 51,110 51,110 51,110 Unrestricted 1,598,009 0 0 0 0
Total Ending Fund Balance 1 ,649,119 51,110 51,110 51,110 51,110 Total Use of Funds 2,094,469 2,234,530 2,234,530 51,110 51,110
189
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | PREFUNDED PLAN REVIEW FUND
(157)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 0 32,614 32,614 32,614 32,614
Unrestricted 694,338 437,474 437,474 0 0
Total Beginning Fund Balance 694,338 470,088 470,088 32,614 32,614 Revenue
Other Revenue 332,500 0 0 0 0
Total Revenue 332,500 0 0 0 0
Transfers From
General Fund - Advanced Planning
Reserve
0 60,000 60,000 0 0
Total Transfers From 0 60,000 60,000 0 0
Total Source of Funds 1,026,838 530,088 530,088 32,614 32,614 Expenditures
Materials/Services/Supplies 543,649 497,474 497,474 0 0 Total Expenditures 543,649 497,474 497,474 0 0
Transfers To
General Fund 13,101 0 0 0 0
Total Transfers To 13,101 0 0 0 0
Ending Fund Balance
Encumbrance Carryover 32,614 32,614 32,614 32,614 32,614 Unrestricted 437,474 0 0 0 0
Total Ending Fund Balance 470,088 32,614 32,614 32,614 32,614 Total Use of Funds 1,026,838 530,088 530,088 32,614 32,614
190
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | PUBLIC DONATIONS FUND (067)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Unrestricted 462,028 610,912 610,912 0 0
Total Beginning Fund Balance 462,028 610,912 610,912 0 0 Revenue
Donations
C i t y M a n a g e r ' s O f f i c e 3 4 10000
Parks and Recreation 32,258 5,000 5,000 0 0
P o l i c e 1 5 2 , 5 0 00000
Total Revenue 185,099 5,000 5,000 0 0
Total Source of Funds 647,127 615,912 615,912 0 0
Expenditures
City Manager's Office
Bank of Santa Clara Car Seat Program 0 500 500 0 0
Donations - Art in Public Places 0 226 226 0 0
Donations - Championship Teams 0 1,344 1,344 0 0
Donations - Help Your Neighbor 33,339 29,067 29,067 0 0 Donations - Mission City Community 0 67 67 0 0
Donations - Undesignated 0 275 275 0 0
S.C. Art in Public Places 0 37,720 37,720 0 0
Community Development
Donations - Berryessa Adobe 0 1,150 1,150 0 0
Donations - Historical Preservation 0 4,491 4,491 0 0
Fire
Donations - Fire Safety 0 1,961 1,961 0 0
Donations - Public Education 0 1,384 1,384 0 0
Parks and Recreation
Arts, Crafts and Wine Festival 0 179,852 179,852 0 0
Case Management Grant 0 59,726 59,726 0 0
Roberta Jones JR Theatre 0 1,745 1,745 0 0
Teens - Youth Commission 0 3,819 3,819 0 0
Wade Brummal Scholarship Fund 2,420 130,624 130,624 0 0 Police
Donation - COVID 456 4,544 4,544 0 0
Police - Bicycle Safety Program 0 1,377 1,377 0 0
191
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | PUBLIC DONATIONS FUND (067)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Expenditures
Police
Police - Team 200 0 150,000 150,000 0 0
Police - Training Simunition Program 0 2,500 2,500 0 0
Police - Voucher Program 0 3,540 3,540 0 0
Total Expenditures 36,215 615,912 615,912 0 0
Ending Fund Balance
E n c u m b r a n c e C a r r y o v e r 00000
Unrestricted 610,912 0 0 0 0
Total Ending Fund Balance 610,912 0 0 0 0
Total Use of Funds 647,127 615,912 615,912 0 0
192
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | PUBLIC, EDUCATIONAL, AND
GOVERNMENTAL FEE FUND (221)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 15,534 42,309 42,309 42,309 42,309 Unrestricted 2,411,173 2,530,675 2,530,675 2,680,675 2,680,675 Total Beginning Fund Balance 2,426,707 2,572,984 2,572,984 2,722,984 2,722,984 Revenue
Other Revenue 232,867 200,000 200,000 200,000 200,000
Total Revenue 232,867 200,000 200,000 200,000 200,000
Total Source of Funds 2,659,574 2,772,984 2,772,984 2,922,984 2,922,984 Expenditures
Capital Outlay 86,590 974,239 50,000 200,000 200,000
Total Expenditures 86,590 974,239 50,000 200,000 200,000 Ending Fund Balance
Encumbrance Carryover 42,309 42,309 42,309 42,309 42,309 Unrestricted 2,530,675 1,756,436 2,680,675 2,680,675 2,680,675 Total Ending Fund Balance 2,572,984 1,798,745 2,722,984 2,722,984 2,722,984 Total Use of Funds 2,659,574 2,772,984 2,772,984 2,922,984 2,922,984
193
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | ROAD MAINTENANCE AND
REHABILITATION (SB1) FUND (122)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Unrestricted 356,270 921,779 921,779 971,779 1,021,779
Total Beginning Fund Balance 356,270 921,779 921,779 971,779 1,021,779 Revenue
State Revenues 2,612,032 2,500,000 2,500,000 2,500,000 2,500,000 Interest 53,477 0 50,000 50,000 50,000
Total Revenue 2,665,509 2,500,000 2,550,000 2,550,000 2,550,000 Total Source of Funds 3,021,779 3,421,779 3,471,779 3,521,779 3,571,779 Transfers To
Streets and Highways Capital Fund 2,100,000 2,500,000 2,500,000 2,500,000 2,500,000 Total Transfers To 2,100,000 2,500,000 2,500,000 2,500,000 2,500,000 Ending Fund Balance
Unrestricted 921,779 921,779 971,779 1,021,779 1,071,779 Total Ending Fund Balance 921,779 921,779 971,779 1,021,779 1,071,779 Total Use of Funds 3,021,779 3,421,779 3,471,779 3,521,779 3,571,779
194
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS SPECIAL REVENUE FUNDS | TRAFFIC MITIGATION FUND (123)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Unrestricted 4,527,702 3,349,091 3,349,091 2,512,561 2,962,561 Total Beginning Fund Balance 4,527,702 3,349,091 3,349,091 2,512,561 2,962,561 Revenue
Other Fees for Services 978,860 1,000,000 1,000,000 1,000,000 1,000,000 Interest 169,127 150,000 150,000 150,000 150,000
Total Revenue 1,147,987 1,150,000 1,150,000 1,150,000 1,150,000 Trans fers From
Streets and Highways Capital Fund 266,78 00000
Total Transfers From 266,7800000
Total Source of Funds 5,942,469 4,499,091 4,499,091 3,662,561 4,112,561 Trans fers To
Streets and Highways Capital Fund 2,593,378 1,986,530 1,986,530 700,000 1,600,000 Total Transfers To 2,593,378 1,986,530 1,986,530 700,000 1,600,000 Ending Fund Balance
Unrestricted 3,349,091 2,512,561 2,512,561 2,962,561 2,512,561 Total Ending Fund Balance 3,349,091 2,512,561 2,512,561 2,962,561 2,512,561 Total Use of Funds 5,942,469 4,499,091 4,499,091 3,662,561 4,112,561
195
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196
Enterprise Funds
197
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198
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS
ENTERPRISE FUNDS
Enterprise funds are used to finance and account for operations and activities performed by designated departments in the City or through third party agreements. The operat ing revenues and expenses result from providing services and producing and delivering goods in connection with an enterprise fund’s principal ongoing operations. Principal operating revenues of the City’s enterprise funds are charges to customers for services. Operating expenses for the City's enterprise funds include the costs of sales and services, administrative expenses and maintenance of capital assets.
Cemetery Fund (093)
This fund is managed by the Parks and Recreation Department and provides planning, development, operation, and maintenance of the City’s two cemetery properties with one located on North Winchester Boulevard and one on Hope Drive. This fund is supported by charges for these services and transfers from the General Fund.
Convention Center Enterprise Fund (860)
This fund was established in 1984 to account for the operati ons of the City’s Convention Center through third-party agreements. In February 2019, the City entered into an agreement with Global Spectrum, LP, dba Spectra Venue Management (Spectra). Spectra was subsequently acquir ed by Oak View Group (OVG360) and now manages the Convention Center. As part of the agreement, OVG360 provided the City with an operating budget for FY 2023/24 and FY 2024/25. These submittals have been incorporated into the source and use documents.
Electric Operating Grant Trust Fund (191)
The City’s Electric Utility Department, known as Silicon Valley Power (SVP), initially established the Electric Operating Grant Trust Fund for the Public Benefits Program. For the Public Benefits Pr ogram, SVP is requir ed to collect and spend 2.85% of its electric sales revenues (customer servic e charges from Electric Utilit y Fund) in accordance with assembly bill AB 1890 on cost-effective energy efficien cy, new renewable power generation, low-income energy programs, and new electric technologies research and development.
In FY 2019/20, two programs were added to this fund - the Low Carbon Fuel and Greenhouse Gas (GHG) programs.
These programs also use restricted revenue and have annual reporting requirements. The Low Carbon Fuel program is aimed at participating and complying with the California Air Resources Board (CARB) Low Carbon Fuel Standard (LCFS) Program to develop, educate and foster the adoption of electrification as tr ansportation fuel. Program expenses are allocated and required to be spent within three primary groups: Clean Fuel Rewards Program, Equity Projects, and Customer Programs. The Greenhouse Gas Program’s purpose is to comply with Cap-and-Trade Regulation requirements to spend proceeds from allocate d allowances consistent wi th the goals of AB 32 and to provide benefit to retail ratepayers in the form of GHG reduction.
199
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS Electric Utility Fund (091)
The Electric Utility Fund is m anaged by SVP and is the primary operating fund for electric utility service provided to City customers. SVP provides these se rvices on a user charge basis to re sidences, businesse s, and industrial customers, including large data centers.
The primary revenue source in the Electric Utility Fund is electric rates which are approved by the City Council. SVP typically submits a recommendation for rate increases annually. The rate increase recommendation is based on SVP’s ten-year forecast which includes SVP’ s revenue and expendi ture projections to cover operating cost s, reserve requirements, debt service, capital impr ovement projects, and other legal obligations. Electric rate increases have been relatively stable historically, so cu stomers, both large and small, have been able to budget their electric usage to support their long-term operations. At the same time, for low-income customers who have difficulty absorbing the rate increases, SVP continues to offer financial assistance and also offers energy conservation programs and rebates to help all customers reduce their el ectricity usage. For pu rposes of the FY 2023/24 budget, SVP assumed a rate increase of 5% on July 1, 2023 and an additional rate incr ease of 7% on January 2024. For FY 2024/25, a 7% rate increase on January 2025 is estimated and will be reevaluated during FY 2023/24. Any proposed rate increase will be brought to City Council and, based on information availabl e at that time, will include consideration of the expense drivers further described below.
SVP has over 59,000 customer accounts in the City: 85% residential, 11% commercial, 3% industrial, and <1% other.
The proportion of revenue contribution is reversed: 92% of revenues are generated by industrial customers, 6% from residential customers, 2% from commerc ial customers, and < 1% from others. Industrial customers include many publicly listed technology companies headquartered in the City and data centers hosting servers for these companies.
Load growth and forecasted energy sales are based on a combination of historical data and forward-looking opportunities, especially from large key industrial customers. Additional revenues are generated through wholesale energy sales, capacity sales, Congestion Revenue Rights (C RR), Renewable Energy Cr edits (RECs), and ancillary services. Given the high concentra tion of revenue generated from industr ial customers, SVP’s revenue growth prospect is highly correlated to Silicon Valley’s economic growth.
SVP’s primary expense drivers are electric supply and distribution costs. For FY 2023/24, 25% of power supply, after netting SVP’s generation resources against SVP’s load, is expected to be purchased from the California Independent System Operator (CAISO) market. Market purchase prices have a very high positive correlation with natural gas prices and are subject to the same volatility. If natural gas prices spike, higher than forecasted prices to procure power from the market would be expected. The transmission access rates that applies to electric energy that SVP receives via the PG&E transmission system are expected to increase year over year. PG&E needs to collect the transmission fees to fund the growing cost of maintenance and infrastructure improvements to the transmission grid. In addition, a significant part of SVP’s electric distribution cost is the capital improvement needed for the aged system. These capital costs are also expected to increase due to higher commodities costs cau sed by supply chain issues across the world.
Per the budget policy, this fund includes reserves for Rate Stabilization, Operations and Maintenance, Infrastructure, Special Projects (as needed), and Pension Stabilization.
200
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS Sewer Utility Fund (094)
This fund is managed by the Water and Sewer Utilities Department and accounts for the maintenance of the City’s sewer lines and related facilities. The Department provides these services on a user charge basis to residences and businesses.
Each operating budget cycle, the Depar tment develops a ten-year forecast based on their revenue and expenditure projections. Revenue in the Sewer Utility Fund are dictated by the utility rates approv ed by the City Council and the actual water usage by residences and businesses. An annual rate study is conducted by a third-party consultant selected by the Water and Se wer Utilities Department; this information is then used to determine both revenue and expenditure projections in the forecast. Revenue projections are based on a trend analysis and take into consideration historical data and anticipated activity and reflect proposed rate in creases. The Department will be bringing forward the proposed rates for City Council approval on June 6, 2023. If approved, the rates will be effective beginning July 1, 2023. Anticipated expenditures also play a role in the development of the revenue projections. Expenditure projections are based on historical data and the capital project needs approved in the City’s Capital Improvement Program budget.
Additionally, the City co-owns the Regional Wastewater Facility with the City of San José. Estimates are provided by the City of San José for Santa Clara’s share of the facility rebuild, and these estimates are also used in determining the expenditure projections in the Sewer Utility Fund.
Per the budget policy, this fund includes reserves for Rate Stabilization, Operations and Maintenance, Infrastructure, and Pension Stabilization. It also includes a Replacement and Improvement Reserve.
Solid Waste Fund (096)
This fund is managed by the Public Works Department and accounts for the administration of the City’s garbage and rubbish collection service, including street sweeping, household hazardous waste, and Clean-Up Campaign services.
The revenue projections are based on anticipated increa ses in garbage rates due to increases in agreements for exclusive franchise garbage and yard waste collection and solid waste processing services. The department brings rate increases forward to Council and, once approved, rates will be effective beginning July 1, 2023.
Per the budget policy, this fund includes reserves for Rate Stabilizati on, Operations and Main tenance, and Pension Stabilization.
Water Recycling Fund (097)
This fund is managed by the Water an d Sewer Utilities Department and acc ounts for the ongoing maintenance and operations of the City of Santa Clara’s wastewater reclamation system. The Department provides these services on a user charge basis from the sale of non-potable water for irrigation and landscaping.
Each operating budget cycle, the Department develops a t en-year forecast with their revenue and expenditure projections. Revenue in the Water Recycling Program Fund are dictated by the utility rates ap proved by the City Council and the actual water usage by residences and businesses. An annual rate study is conducted by a third-party consultant selected by the Water and Sewer Utilities Department; this information is then used to determine both revenue and expenditure projections in the forecast. Revenue projections are based on a trend analysis and take into consideration historical data and antic ipated activity and reflect proposed rate increases. The Department will be bringing forward the proposed rates for City Council approval on June 6, 2023. If approved, the rates will be effective beginning July 1, 2023. Anticipated expendi tures also play a role in the development of the revenue projections.
Expenditure projections are based on historical data and capital projects needs approv ed in the City’s Capital Improvement Program budget.
Per the budget policy, this fund includes reserves for Rate Stabilization, Operations and Maintenance, Infrastructure, and Pension Stabilization.
201
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS Water Utility Fund (092)
This fund is managed by the Water and Sewer Utilities Department and accounts for the operation of the City’s water utility services. The Department provides these services on a user charge basis to residences and businesses.
Each operating budget cycle, the Department develops a t en-year forecast with their revenue and expenditure projections. Revenue in the Wa ter Utility Fund are dictated by the utility ra tes approved by the City Council and the actual water usage by residences and businesses. An annual rate study is conducted by a third-party consultant selected by the Water and Se wer Utilities Department; this information is then used to determine both revenue and expenditure projections in the forecast. Revenue projections are based on a trend analysis and take into consideration historical data and anticipated activity and reflect proposed rate in creases. The Department will be bringing forward the proposed rates for City Council approval on June 6, 2023. If approved, the rates will be effective beginning July 1, 2023. Anticipated expenditures also play a role in the development of the revenue projections. Expenditure projections are based on historical data and capital projects needs approved in the City’s Capital Improvement Program Budget.
Per the adopted budget policy, this f und includes reserves for Rate Stabilization, Oper ations and Maintenance, Infrastructure, and Pension Stabilization. It also include s a Replacement and Improv ement Reserve and a Water Conservation Reserve.
The following section details the City of Santa Clara’s Enterprise Funds’ Statements of Sources and Uses and the Proposed Budget for Fiscal Year 2023/24 and Fiscal Year 2024/25.
202
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | CEMETERY FUND (093)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Unrestricted 186,317 398,384 398,384 350,118 391,447
Total Beginning Fund Balance 186,317 398,384 398,384 350,118 391,447 Revenue
Other Agencies Revenue 1,983 0 0 0 0
Other Fees for Services 759,085 600,000 600,000 750,000 750,000 Other Revenue 7,865 0 0 0 0
Total Revenue 768,933 600,000 600,000 750,000 750,000
Trans fers From
General Fund 850,000 870,000 870,000 796,000 823,000
Endowment Care Fund 29,663 28,000 28,000 30,000 30,000
Perpetual Care Fund 558 500 500 500 500
Total Transfers From 880,221 898,500 898,500 826,500 853,500 Total Source of Funds 1,835,471 1,896,884 1,896,884 1,926,618 1,994,947 Expenditures
Salaries 513,797 508,062 508,062 510,578 533,503
Retirement and Benefits 324,604 312,127 312,127 334,483 350,088 Materials/Services/Supplies 275,967 383,433 383,433 395,945 408,899 Services From Other Funds - Cost
Allocation Plan
129,713 132,307 132,307 132,888 135,546
Interfund Services 191,865 210,015 210,015 160,455 162,230 Capital Outlay 319 0 0 0 0
Total Expenditures 1,436,265 1,545,944 1,545,944 1,534,349 1,590,266 Trans fers To
General Government Capital Fund 822 822 822 822 822
Total Transfers To 822 822 822 822 822
Ending Fund Balance
Unrestricted 398,384 350,118 350,118 391,447 403,859
Total Ending Fund Balance 398,384 350,118 350,118 391,447 403,859 Total Use of Funds 1,835,471 1,896,884 1,896,884 1,926,618 1,994,947
203
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | CONVENTION CENTER ENTERPRISE
FUND (860)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 143,247 127,347 127,347 127,347 127,347 Operating Surplus 0 0 0 0 104,169
Restricted - Levy 0 192,952 192,952 192,952 192,952
Unrestricted 2,034,341 2,581,215 2,581,215 1,808,176 1,264,195 Total Beginning Fund Balance 2,177,588 2,901,514 2,901,514 2,128,475 1,688,663 Revenue
Levy Investment 1,764,000 0 0 0 0
Charges for Services 6,447,482 0 0 0 0
Rents 2,068,329 0 0 0 0
Interest 2,754 0 0 0 0
Event Revenue 0 13,530,685 13,530,685 15,500,000 18,000,000 Other Revenue 54,930 72,950 72,950 163,770 193,014
Total Revenue 10,337,495 13,603,635 13,603,635 15,663,770 18,193,014 Total Source of Funds 12,515,083 16,505,149 16,505,149 17,792,245 19,881,677 Expenditures
Salaries 184,923 186,593 186,593 145,069 154,092
Retirement and Benefits 125,581 99,130 99,130 73,329 76,945 Materials/Services/Supplies 105,950 45,000 45,000 45,000 0 Interfund Services 2,277 224,601 224,601 280,583 286,195 Event Expense 2,950,346 8,318,461 8,318,461 9,278,497 10,718,782 Indirect Expense 4,480,492 5,502,889 5,502,889 6,281,104 7,048,430 Total Expenditures 7,849,569 14,376,674 14,376,674 16,103,582 18,284,444 Transfers To
Public Buildings Capital Fund 1,764,000 0 0 0 0
Total Transfers To 1,764,000 0 0 0 0
Ending Fund Balance
Encumbrance Carryover 127,347 127,347 127,347 127,347 127,347 Operating Surplus 0 0 0 104,169 425,802
Restricted - Levy 192,952 192,952 192,952 192,952 192,952 Unrestricted 2,581,215 1,808,176 1,808,176 1,264,195 851,132 Total Ending Fund Balance 2,901,514 2,128,475 2,128,475 1,688,663 1,597,233 Total Use of Funds 12,515,083 16,505,149 16,505,149 17,792,245 19,881,677 204
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | ELECTRIC OPERATING GRANT TRUST
FUND (191)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Public Benefits 45,163,299 50,327,692 50,327,692 50,108,343 50,009,732 Low Carbon Fuel 5,591,086 3,660,449 3,660,449 2,807,181 2,830,795 Greenhouse Gas 5,031,510 16,309,517 16,309,517 19,837,005 14,837,005 Total Beginning Fund Balance 55,785,895 70,297,658 70,297,658 72,752,529 67,677,532 Revenue
Charges for Services 14,223,249 15,685,184 15,901,640 18,205,028 20,400,486 Low Carbon Fuel 0 3,120,024 0 3,137,602 3,055,800
Greenhouse Gas 19,826,637 14,954,745 21,600,488 16,450,804 16,653,781 Other Revenue 24,655 46,474 46,474 48,800 54,000
Total Revenue 34,074,541 33,806,427 37,548,602 37,842,234 40,164,067 Transfers From
Electric Utility Capital Fund 200,082 126,839 126,839 0 0 Total Transfers From 200,082 126,839 126,839 0 0
Total Source of Funds 90,060,518 104,230,924 107,973,099 110,594,763 107,841,599 Expenditures
Salaries 394,538 920,049 582,000 971,645 1,032,128
Retirement and Benefits 263,930 476,265 431,000 490,326 518,676 Materials/Services/Supplies 1,871,920 3,724,520 1,500,000 3,442,600 3,528,800 Mandated Program Costs 4,113,973 13,199,575 1,700,000 14,466,200 15,382,400 Services From Other Funds - Cost
Allocation Plan
189,013 192,793 192,793 205,323 209,429
Contribution In Lieu 712,395 784,259 795,082 910,251 1,020,024 Interfund Services 85,753 103,813 103,813 8,364 8,306
Total Expenditures 7,631,522 19,401,274 5,304,688 20,494,709 21,699,763 Trans fers To
Electric Utility Fund 6,760,648 23,513,213 23,513,213 19,637,522 9,594,417 Electric Utility Capital Fund 4,851,839 4,702,669 4,702,669 1,000,000 1,000,000 Streets and Highway Capital Fund 400,000 400,000 400,000 285,000 515,000 Parks and Recreation Capital Fund 0 300,000 300,000 0 0 Vehicle Replacement Fund 118,851 1,726,988 1,000,000 1,500,000 1,500,000 Total Transfers To 12,131,338 30,642,870 29,915,882 22,422,522 12,609,417
205
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | ELECTRIC OPERATING GRANT TRUST
FUND (191)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Ending Fund Balance
Public Benefits 50,327,692 44,528,439 50,108,343 50,009,732 55,839,365 Low Carbon Fuel 3,660,449 3,657,181 2,807,181 2,830,795 2,856,049 Greenhouse Gas 16,309,517 6,001,160 19,837,005 14,837,005 14,837,005 Total Ending Fund Balance 70,297,658 54,186,780 72,752,529 67,677,532 73,532,419 Total Use of Funds 90,060,518 104,230,924 107,973,099 110,594,763 107,841,599
206
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | ELECTRIC UTILITY FUND (091)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 1,870,818 2,460,670 2,460,670 2,460,670 2,460,670 Infrastructure Reserve 55,354,340 0 0 0 0
Operations and Maintenance Reserve 107,900,786 118,765,556 118,765,556 138,891,417 141,135,713 Pension Trust Reserve 6,808,996 6,146,358 6,146,358 7,066,429 7,066,429 Rate Stabilization Reserve 44,356,590 48,776,613 48,776,613 53,705,758 63,877,292 Trading Restricted Reserve 5,522,664 19,518,954 19,518,954 9,518,954 9,518,954 Unrestricted 104,577,395 127,141,220 127,141,220 76,261,646 72,526,687 Total Beginning Fund Balance 326,391,589 322,809,371 322,809,371 287,904,874 296,585,745 Revenue
Charges for Services 499,790,175 550,287,325 557,856,599 638,272,920 715,606,515 Other Fees for Services 2,038,085 3,034,130 2,019,877 1,225,000 1,250,000 Other Agencies Revenue 1,419,797 0 0 0 0
Interest 5,659,664 5,569,490 6,671,038 8,549,701 9,778,265 Rents 3,596,115 3,616,685 3,550,100 3,569,200 3,668,000 Wholesale Revenue 27,099,185 30,249,529 20,802,635 10,883,206 14,456,109 Restricted Revenues 2,024,100 1,572,313 2,258,566 545,550 545,550 Other Revenue 698,333 1,289,337 21,040,387 2,084,400 2,345,100 Total Revenue 542,325,454 595,618,809 614,199,202 665,129,977 747,649,539 Trans fers From
Electric Operating Grant Trust Fund 6,760,648 23,513,213 23,513,213 19,637,522 9,594,417 Electric Utility Capital Fund 0 10,761,450 10,761,450 0 0 Street Lighting Capital Fund 0 2,075,000 2,075,000 0 0
Total Transfers From 6,760,648 36,349,663 36,349,663 19,637,522 9,594,417 Total Source of Funds 875,477,691 954,777,843 973,358,236 972,672,373 1,053,829,701 Expenditures
Salaries 30,173,103 40,845,681 37,499,428 47,313,083 50,520,892 Retirement and Benefits 15,337,397 19,929,183 15,750,220 21,842,575 23,186,814 Materials/Services/Supplies 27,324,133 34,677,779 33,494,962 43,836,984 43,627,374 Resource/Production 407,115,829 428,265,146 475,345,599 468,625,508 493,411,107 Services From Other Funds - Cost
Allocation Plan
7,912,091 8,070,333 8,070,333 8,770,238 8,945,643
Interfund Services 5,906,226 6,770,228 6,770,228 3,240,390 3,284,487 Contribution In Lieu 26,546,773 28,539,968 29,767,117 33,061,163 36,558,109 Capital Outlay 299,963 1,717,619 1,472,167 127,000 137,000 Total Expenditures 520,615,515 568,815,937 608,170,054 626,816,941 659,671,426
207
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | ELECTRIC UTILITY FUND (091)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Transfers To
General Fund 1,059,733 1,229,573 1,229,573 349,749 373,736 General Government Capital Fund 596,323 204,323 204,323 596,323 596,323 Streets and Highways Capital Fund 90,000 0 0 0 0
Street Lighting Capital Fund 0 71,455 71,455 125,000 4,175,000 Electric Utility Capital Fund 14,000,865 59,229,040 59,229,040 13,919,559 51,032,674 Electric Debt Service Fund 16,305,884 16,548,917 16,548,917 34,279,056 36,296,170 Total Transfers To 32,052,805 77,283,308 77,283,308 49,269,687 92,473,903 Ending Fund Balance
Encumbrance Carryover 2,460,670 2,460,670 2,460,670 2,460,670 2,460,670 Operations and Maintenance Reserve 118,765,556 138,891,417 138,891,417 141,135,713 137,521,061 Pension Trust Reserve 6,146,358 7,066,429 7,066,429 7,066,429 7,353,348 Rate Stabilization Reserve 48,776,613 53,705,758 53,705,758 63,877,292 71,580,652 Trading Restricted Reserve 19,518,954 19,518,954 9,518,954 9,518,954 9,518,954 Unrestricted 127,141,220 87,035,370 76,261,646 72,526,687 73,249,687 Total Ending Fund Balance 322,809,371 308,678,598 287,904,874 296,585,745 301,684,372 Total Use of Funds 875,477,691 954,777,843 973,358,236 972,672,373 1,053,829,701
208
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | SEWER UTILITY FUND (094)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 141,935 221,648 221,648 221,648 221,648 Replacement and Improvement Reserve 1,507,553 1,507,553 1,507,553 1,507,553 1,507,553 Rate Stabilization Reserve 2,395,030 2,395,030 2,395,030 2,395,030 4,248,070 Operations and Maintenance Reserve 1,835,079 1,835,079 1,835,079 1,835,079 8,348,279 Infrastructure Reserve 1,596,928 1,596,928 1,596,928 1,596,928 4,793,175 Pension Stabilization Reserve 557,998 595,654 595,654 683,361 683,361 Reserve for Settlements 0 0 0 3,000,000 3,000,000
Unrestricted 21,494,953 39,725,080 39,725,080 8,313,100 6,394,530 Total Beginning Fund Balance 29,529,476 47,876,972 47,876,972 19,552,699 29,196,616 Revenue
Other Agencies Revenue 12,896,608 350,000 4,660,000 375,000 375,000 Charges for Services 40,517,221 39,400,000 39,400,000 42,480,700 46,419,300 Other Fees for Services 48,616 98,345 98,345 20,000 20,000 Interest 270,762 565,000 565,000 579,125 593,603
Rents 56,614 46,000 46,000 46,000 46,000
Other Revenue 187,025 0 0 0 0
Total Revenue 53,976,846 40,459,345 44,769,345 43,500,825 47,453,903 Trans fers From
Electric Utility Capital Fund 186,108 0 0 0 0
Total Transfers From 186,108 0 0 0 0
Total Source of Funds 83,692,430 88,336,317 92,646,317 63,053,524 76,650,519 Expenditures
Salaries 2,280,991 3,021,846 3,021,846 2,953,194 3,129,812 Retirement and Benefits 1,281,064 1,666,204 1,666,204 1,686,176 1,790,270 Right of Way Rental Expense 1,719,147 1,805,104 1,805,104 2,124,035 2,320,965 Materials/Services/Supplies 723,815 1,582,535 1,582,535 602,118 603,789 Resource/Production 19,122,480 19,332,885 19,332,885 19,885,543 20,504,364 Services From Other Funds 25,168 25,168 25,168 0 0
Services From Other Funds - Cost
Allocation Plan
1,372,823 1,400,279 1,400,279 1,500,450 1,530,459
Interfund Services 1,176,069 1,127,347 1,127,347 1,187,892 1,205,123 Capital Outlay 0 1,200,000 1,200,000 0 0
Total Expenditures 27,701,557 31,161,368 31,161,368 29,939,408 31,084,782 Trans fers To
General Government Capital Fund 50,278 4,278 4,278 50,278 50,278 Sewer Utility Capital Fund 5,611,748 35,844,913 40,090,522 3,867,222 18,047,101
209
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | SEWER UTILITY FUND (094)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Trans fers To
W a t e r U t i l i t y C a p i t a l F u n d 5 0 0 , 0 0 00000 Sewer Utility Debt Service Fund 1,889,035 1,837,450 1,837,450 0 1,050,000 S t r e e t s a n d H i g h w a y s C a p i t a l F u n d6 2 , 8 4 00000 Total Transfers To 8,113,901 37,686,641 41,932,250 3,917,500 19,147,379 Ending Fund Balance
Encumbrance Carryover 221,648 221,648 221,648 221,648 221,648 Replacement and Improvement Reserve 1,507,553 1,507,553 1,507,553 1,507,553 1,507,553 Rate Stabilization Reserve 2,395,030 2,395,030 2,395,030 4,248,070 4,641,930 Operations and Maintenance Reserve 1,835,079 1,835,079 1,835,079 8,348,279 8,348,279 Infrastructure Reserve 1,596,928 1,596,928 1,596,928 4,793,175 4,793,175 Pension Stabilization Reserve 595,654 683,361 683,361 683,361 700,969 Reserve for Settlements 0 3,000,000 3,000,000 3,000,000 3,000,000 Unrestricted 39,725,080 8,248,709 8,313,100 6,394,530 3,204,804 Total Ending Fund Balance 47,876,972 19,488,308 19,552,699 29,196,616 26,418,358 Total Use of Funds 83,692,430 88,336,317 92,646,317 63,053,524 76,650,519
210
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | SOLID WASTE FUND (096)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 3,657,533 3,533,566 3,533,566 3,533,566 3,533,566 Operations and Maintenance Reserve 2,675,520 2,675,520 2,675,520 2,675,520 2,140,037 Pension Trust Reserve 305,929 288,662 288,662 288,662 309,291 Rate Stabilization Reserve 1, 756,597 1,597,768 1,597,768 1,765,150 1,765,150 Unrestricted 0 2,485,895 2,485,895 2,464,422 3,276,354
Total Beginning Fund Balance 8,395,579 10,581,411 10,581,411 10,727,320 11,024,398 Revenue
Other Agencies Revenue 400,504 297,000 297,000 219,000 219,000 Interest (32,225) 0 0 0 0
Charges for Services 2,479,848 2,896,000 2,896,000 2,786,000 2,792,160 Other Fees for Services 31,494,034 34,052,092 34,052,092 36,572,957 38,035,355 Other Revenue 110,802 0 0 0
Total Revenue 34,452,963 37,245,092 37,245,092 39,577,957 41,046,515 Trans fers From
General Fund 33,600 35,364 35,364 35,364 35,364
Total Transfers From 33,600 35,364 35,364 35,364 35,364 Total Source of Funds 42,882,142 47,861,867 47,861,867 50,340,641 52,106,277 Expenditures
Salaries 900,073 919,457 919,457 991,086 1,039,824
Retirement and Benefits 485,952 479,020 479,020 530,377 556,306 Materials/Services/Supplies 1,276,315 2,430,196 2,430,196 2,489,695 2,534,290 Contribution in Lieu 683,376 721,621 721,621 841,888 875,563 Resource/Production 26,388,818 29,764,785 29,764,785 31,502,632 32,762,738 Services From Other Funds - Cost
Allocation Plan
1,363,802 1,391,078 1,391,078 1,428,611 1,457,183
Interfund Services 925,774 930,269 930,269 998,333 1,009,749 Total Expenditures 32,024,110 36,636,426 36,636,426 38,782,622 40,235,653 Trans fers To
General Government Capital Fund 26,621 5,121 5,121 26,621 26,621 Solid Waste Capital Fund 250,000 493,000 493,000 507,000 523,000 Total Transfers To 276,621 498,121 498,121 533,621 549,621
211
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | SOLID WASTE FUND (096)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Ending Fund Balance
Encumbrance Carryover 3,533,566 3,533,566 3,533,566 3,533,566 3,533,566 Operations and Maintenance Reserve 2,675,520 2,675,520 2,675,520 2,140,037 2,279,857 Pension Trust Reserve 288,662 288,662 288,662 309,291 343,657 Rate Stabilization Reserve 1, 597,768 1,765,150 1,765,150 1,765,150 1,765,150 Unrestricted 2,485,895 2,464,422 2,464,422 3,276,354 3,398,773 Total Ending Fund Balance 10,581,411 10,727,320 10,727,320 11,024,398 11,321,003 Total Use of Funds 42,882,142 47,861,867 47,861,867 50,340,641 52,106,277
212
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | WATER RECYCLING FUND (097)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Rate Stabilization Reserve 2,327,420 1,037,596 1,037,596 2,327,420 2,327,420 Operations and Maintenance Reserve 1,467,571 2,062,738 2,062,738 2,262,095 2,262,095 Infrastructure Reserve 943,180 50,000 50,000 51,500 51,500 Pension Stabilization Reserve 70,450 108,715 108,715 124,092 124,092 Unrestricted 780,484 3,204,308 3,204,308 1,867,561 1,301,845 Total Beginning Fund Balance 5,589,105 6,463,357 6,463,357 6,632,668 6,066,952 Revenue
Other Agencies Revenue 680,530 350,000 350,000 350,000 350,000 Charges for Services 5,699,560 5,200,000 5,850,000 7,203,200 8,126,000 Other Fees for Services 6,133 0 0 0 0
Interest 99,991 92,882 92,882 95,668 98,538
Other Revenue 5,393 65,564 65,564 20,000 20,000
Total Revenue 6,491,607 5,708,446 6,358,446 7,668,868 8,594,538 Transfers From
Recycled Water Capital Fund 0 0 1,300,000 0 0
Total Transfers From 0 0 1,300,000 0 0
Total Source of Funds 12,080,712 12,171,803 14,121,803 14,301,536 14,661,490 Expenditures
Salaries 259,198 392,754 392,754 576,190 613,949
Retirement and Benefits 201,458 224,723 224,723 330,642 353,173 Right of Way Rental Expense 289,498 255,256 255,256 360,160 406,300 Materials/Services/Supplies 36,933 38,424 38,424 38,373 39,067 Resource/Production 4,657,988 4,700,000 6,450,000 6,815,600 7,974,400 Services From Other Funds - Cost
Allocation Plan
89,984 91,784 91,784 86,874 88,611
Interfund Services 32,296 36,194 36,194 26,745 27,367
Total Expenditures 5,567,355 5,739,135 7,489,135 8,234,584 9,502,867 Trans fers To
Recycled Water Capital Fund 50,000 0 0 0 0
Total Transfers To 50,000 0 0 0 0
213
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | WATER RECYCLING FUND (097)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Ending Fund Balance
Rate Stabilization Reserve 1,037,596 2, 327,420 2,327,420 2,327,420 2,327,420 Operations and Maintenance Reserve 2,062,738 2,262,095 2,262,095 2,262,095 2,262,095 Infrastructure Reserve 50,000 51,500 51,500 51,500 51,500 Pension Stabilization Reserve 108,715 124,092 124,092 124,092 124,092 Unrestricted 3,204,308 1,667,561 1,867,561 1,301,845 393,516 Total Ending Fund Balance 6,463,357 6, 432,668 6,632,668 6,066,952 5,158,623 Total Use of Funds 12,080,712 12, 171,803 14,121,803 14,301,536 14,661,490
214
FY 2023/24 AND FY 2024/25 PROPOSED OPERATING BUDGET | STATEMENTS OF SO URCES AND USES OF FUNDS ENTERPRISE FUNDS | WATER UTILITY FUND (092)
2021/22
Actual
2022/23
Amended
2022/23
Estimate
2023/24
Proposed
2024/25
Proposed
Beginning Fund Balance
Encumbrance Carryover 382,643 1,615,796 1,615,796 1,615,796 1,615,796 Replacement and Improvement Reserve 303,090 303,090 303,090 303,090 303,090 Water Conservation Reserve 33,125 33,125 33,125 33,125 33,125 Rate Stabilization Reserve 2,519,347 1,099,800 1,099,800 750,000 5,823,460 Operations and Maintenance Reserve 4,135,580 3,135,580 3,135,580 2,435,580 7,435,580 Infrastructure Reserve 2,144,317 2,144,317 2,144,317 1,144,317 1,144,317 Pension Stabilization Reserve 1, 422,251 1,267,460 1,267,460 1,402,813 1,402,813 Unrestricted 908,456 2,964,743 2,964,743 5,845,632 2,204,595 Total Beginning Fund Balance 11,848,809 12,563,911 12,563,911 13,530,353 19,962,776 Revenue
Charges for Services 48,273,867 46,312,500 46,312,500 58,234,600 63,772,000 Other Agencies Revenue 476,665 0 0 0 0
Other Fees for Services 1,977,617 1,281,056 1,281,056 1,456,343 1,498,034 Interest 256,442 336,600 336,600 343,332 350,199
Rents 56,614 0 0 46,000 46,000
Other Revenue 642,434 428,364 428,364 646,215 667,601
Total Revenue 51,683,639 48,358,520 48,358,520 60,726,490 66,333,834 Trans fers From
Electric Utility Capital Fund 186,108 0 0 0 0
Total Transfers From 186,108 0 0 0 0
Total Source of Funds 63,718,556 60,922,431 60,922,431 74,256,843 86,296,610 Expenditures
Salaries 4,242,625 5,955,685 5,955,685 5,778,639 6,119,324 Retirement and Benefits 2,836,218 3,355,979 3,355,979 3,323,705 3,519,720 Right of Way Rental Expense 2,092,986 2,197,635 2,197,635 2,907,480 3,184,200 Materials/Services/Supplies 2,815,155 2,987,943 2,987,943 3,448,394 3,519,687 Resource/Production 28,611,198 27,500,000 27,500,000 33,397,819 38,404,571 Services From Other Funds 25,168 25,168 25,168 0 0
Services From Other Funds - Cost
Allocation Plan
2,796,434 2,852,363 2,852,363 2,963,626 3,022,899
Interfund Services 1,682,795 1,829,847 1,829,847 2,195,468 2,251,265 Capital Outlay 0 448,022 448,022 0 0
Total Expenditures 45,102,579 47,152,642 47,152,642 54,015,131 60,021,666 Trans fers To
General Government Capital Fund 158,936 119,436 119,436 158,936 158,936