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MONTHLY FINANCIAL STATUS REPORT
August 2023
1 City of Santa Clara
Financial Status Report as of August 31, 2023
This report summarizes the City’s financial performance for the month ended August 31, 2023.
Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds. Financial information included in this report is unaudited.
Economic Outlook
Economic indicators are mixed, and there continues to be uncertainty regarding the economic outlook.
Given this level of uncertainty, the December 2022, March 2023 and June 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 come down too slowly if not for the continued Federal Reserve rate hikes. 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 slacken mildly, just enough to quell wage inflation, and the Federal Reserve eases its approach to monetary policy tightening”.1 Real GDP Levels, US$ Trillions, Chained 2012 Prices, Seasonally Adjusted Rates
Source: UCLA Anderson Forecast and U.S. Bureau of Economic Analysis In its September 2023 Forecast, The Conference Board predicts a very short and shallow recession early next year. “This outlook is associated with numerous factors, including, elevated inflation, high interest rates, dissipating pandemic savings, mounting consumer debt, lower government spending, and the resumption of mandatory student loan repayments. We forecast that real GDP will grow by 2.2 percent in 2023, and then fall to 0.8 percent in 2024.”2
1 UCLA Anderson Forecast, June 2023, “The More Things Change the More They Stay the Same: Recession or No Recession is Still the Question”
2 https:///www.conference-board.org/research/us-forecast
2 City of Santa Clara
Financial Status Report as of August 31, 2023
On a national level, the unemployment rate increased slightly from 3.5% in July 2023 to 3.8% in August 2023. This rate was well below the record setting high of 14.7% in April 2020, but slightly above the pre-pandemic unemployment rate of 3.5%. In August, the number of unemployed persons increased by
0.5 million, totaling 6.4 million.3
In the second quarter 2023 second estimate, the Gross Domestic Product (GDP) increased by 2.1%, following a GDP increase of 2.0% in the first quarter. The estimated increase in the first quarter reflected increasing consumer spending, state, local and federal government spending and nonresidential fixed investment.4
3 https://www.bls.gov/news.release/pdf/empsit.pdf
4 https://www.bea.gov/sites/default/files/2023-08/tech2q23_2nd.pdf
3 City of Santa Clara
Financial Status Report as of August 31, 2023
At the state level, the California unemployment rate remained unchanged between July and August 2023 at 4.6%. This rate is higher compared to the 3.8% rate in August 2022. Since the current economic expansion began in April 2020, California has added 3.2 million jobs, regaining the 2.7 million jobs lost as a result of the pandemic.5
The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 3.9% in August 2023, up from a revised 3.6 % in July 2023, and above the August 2022 estimate of 2.7%. Between August 2022 and August 2023, employment in this region increase by 22,100 jobs, or 1.9% The largest increases were in private education and health services (up 13,100 jobs), leisure and hospitality (up 7,500 jobs), and construction (up 3,500 jobs). Notable employment reductions were in manufacturing (down 2,000 jobs) and professional and business services (down 1,900).6
General Fund
The General Fund is the major operating fund for the City and includes multiple programs, services, and activities for the residents and businesses of the City. The adopted budget for operating revenues and expenditures for fiscal year 2023/24 was $281.8 million. The amended budget for revenues and expenditures was adjusted to $287.4 million to reflect carryover encumbrances from fiscal year 2022/23 and various budget amendments approved by the City Council through August 2023.
While it is very early in the fiscal year and limited data is available, General Fund revenues are currently tracking with estimated levels and expenditures are tracking below budget.
5 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-august-2023/ 6 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of August 31, 2023
General Fund Revenues
As of August 31, 2023, $4.9 million or 1.8% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $15.0 million have occurred as budgeted.
This very low collection level through August is largely due to the timing of payments. In some categories, the revenues received in July account for activity that occurred in FY 2022/23 and those revenues are accrued back to that year. In other cases, such as property tax, most payments are scheduled to occur later in the fiscal year.
Adopted Budget
Amended
Budget
Actual Through
8/31/2023
Percentage
Received
Actual Through
8/31/2022
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,524,000$ 60,524,000$ -$ 0.00% -$ -$ N/A Property Tax 85,800,000 85,800,000 76,981 0.09% 137,935 (60,954) -44.19% Transient Occupancy Tax 21,275,000 21,275,000 722,881 3.40% 992,894 (270,013) -27.19% Other Taxes 6,750,000 6,750,000 194,799 2.89% 215,174 (20,375) -9.47% Total Taxes 174,349,000 174,349,000 994,661 0.57% 1,346,003 (351,342) -26.10%
LICENSES & PERMITS
Business Licenses 6,000,000 6,000,000 666,092 11.10% 146,976 519,116 353.20% Fire Operation Permits 2,000,000 2,000,000 125,125 6.26% 301,265 (176,140) -58.47% Miscellaneous Permits 69,000 69,000 50,409 73.06% 30,455 19,954 65.52% Total Licenses & Permits 8,069,000 8,069,000 841,626 10.43% 478,696 362,930 75.82% FINES & PENALTIES 1,225,000 1,225,000 435,491 35.55% 28,881 406,610 1407.88% INTERGOVERNMENTAL 520,000 520,000 9,654 1.86% 24,666 (15,012) -60.86% CHARGES FOR SERVICES 29,314,768 29,662,668 2,043,440 6.89% 4,155,409 (2,111,969) -50.82% SILICON VALLEY POWER TRANSFER 32,000,000 32,000,000 - 0.00% 2,386,990 (2,386,990) -100.00%
USE OF MONEY & PROPERTY
Interest 3,500,000 3,500,000 (1,061,296) -30.32% (153,222) (908,074) 592.65% Rent 12,397,660 12,397,660 1,390,065 11.21% 1,609,231 (219,166) -13.62% Total Use of Money & Property 15,897,660 15,897,660 328,769 2.07% 1,456,009 (1,127,240) -77.42% MISCELLANEOUS REVENUES 180,000 180,000 56,122 31.18% 88,922 (32,800) -36.89%
LAND PROCEED - - - N/A - - N/A
OTHER FINANCING SOURCES
Operating Transfer In - Storm Drain 1,454,000 1,454,000 1,454,000 100.00% 1,454,000 - 0.00% Operating Transfer In - Reserves 2,772,275 8,012,113 8,012,113 100.00% 32,632,195 (24,620,082) -75.45% Operating Transfer In - Fund Balances(1) 4,759,683 4,759,683 4,759,683 100.00% 4,484,726 274,957 6.13% Operating Transfer In - Miscellaneous 746,044 746,044 746,044 100.00% 2,127,374 (1,381,330) -64.93% Total Other Financing Sources 9,732,002 14,971,840 14,971,840 100.00% 40,698,295 (25,726,455) -63.21%
STADIUM OPERATION
Charges for Services 9,278,128 9,278,128 221,494 2.39% 91,272 130,222 142.67% Rent and Licensing 1,230,000 1,230,000 - 0.00% 483,361 (483,361) -100.00% Total Stadium Operation 10,508,128 10,508,128 221,494 2.11% 574,633 (353,139) -61.45% TOTAL GENERAL FUND 281,795,558$ 287,383,296$ 19,903,096$ 6.93% 51,238,504$ (31,335,407)$ -61.16% (1) The Operating Transfer In - Fund Balances includes the carryover encumbrances of open purchase orders as of June 30, 2023 and mid year budget amendment from reserves.
Function
GENERAL FUND
REVENUES OVERVIEW AND COMPARISON BY TYPE
FISCAL YEAR 2023/24 PY REVENUE COMPARISON
5 City of Santa Clara
Financial Status Report as of August 31, 2023
General Fund Revenues
Sales Tax: The City of Santa Clara sales tax rate is 9.125%, of which the City receives 1.0%. As of August 31, 2023, no sales tax has been recorded. Given the timing of payments, the sales tax payments received through August accounted for activity in the prior fiscal year and those funds were accrued to last year.
Property Tax: Property tax receipts totaling $0.1 million were received in August 2023. The majority of property tax revenue is collected in February and April each year. Based on initial information from the County of Santa Clara, property tax receipts are projected to end the year above the Adopted Budget estimate of $85.8 million.
Transient Occupancy Tax (TOT): TOT is calculated as a percentage of City hotel/motel room charges. The City’s TOT rate is 11.5%. Through August 31, 2023, approximately $0.7 million was received, which is 27.2% lower than prior year receipts.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected under $0.2 million through August, which is on par with last fiscal year’s collection levels. Receipts through August reflect franchise tax collections of $0.1 million and approximately $65,000 in documentary transfer tax revenue.
Licenses & Permits: Includes business licenses, fire operation permits, and miscellaneous permits and fees. Effective FY 2021/22, building, electric, plumbing and mechanical permits have all been budgeted in the new Building Development Services Fund, which will be reflected in the Special Revenue section of this report. Licenses and permits revenue collections are tracking below par with receipts totaling $0.8 million, or 10.4% of the $8.1 million budget. However, this represents a 75.8% increase compared to prior year collection levels, primarily in the business license category. The updated Business License Tax is being implemented this fiscal year with the new methodology. With this transition and the need to re-register every business, the timeline to submit payments has been extended which has impacted actual receipts in the first few months. Staff will closely monitor results from the implementation to determine if any budget adjustments are necessary based on the actual collections.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue collected in this category through August was $0.4 million, or 35.6% of the budgeted estimate.
Collections in this category are tracking well above the budget and the prior year due to the resumption of the assessment of late fees that had been waived due to COVID-19.
Intergovernmental: Includes motor vehicle fees, state homeowner tax relief, state mandated reimbursement and redistribution of land sale proceeds and ground leases from the Successor Agency.
Through August 31, 2023, $9,654 was collected in this category.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through
6 City of Santa Clara
Financial Status Report as of August 31, 2023
August, collections totaled approximately $2.0 million or 6.9% of the budget. This reflects a 50.8% decrease compared to last year’s collections through the same period of $4.2 million. This large decrease is a result of timing differences in the booking of interdepartmental charges directly related to the cost allocation plan. Last fiscal year, these charges were booked in July, whereas these charges have not yet occurred this fiscal year.
Silicon Valley Power Transfer: In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund. Through August, this transfer has not yet been received.
Use of Money & Property: Includes realized investment income and rental income. Through August, $0.3 million has been collected, compared to $1.5 million last fiscal year. This decrease is primarily due to higher prior year accruals in the interest category, which results in the negative amount under the interest category in the current year.
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through August 31, 2023, collections are slightly lower with prior year levels at $56,000.
Stadium Operation: Through August 2023, $0.2 million has been collected through charges for services.
7 City of Santa Clara
Financial Status Report as of August 31, 2023
General Fund Expenditures
As of August 31, 2023, $51.0 million or 17.7% of the General Fund operating budget had be en expended, which is on par with prior year expenditure levels. Overall, expenditures in the General Fund are within budgeted levels through August. Departmental expenditures totaled $36.9 million, or 13.8% of the budget, which is below the par level of 16.7% of the budget.
Adopted Budget
Amended
Budget
Actual Through
8/31/2023
Percentage
Use d
Actual Through
8/31/2022
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 15,123,531$ 15,640,480$ 688,588$ 4.40% 681,834$ 6,754$ 0.99% City Council 1,124,281 1,131,037 170,308 15.06% 82,105 88,203 107.43% City Clerk 1,947,261 2,121,865 214,143 10.09% 158,246 55,897 35.32% City Manager 5,410,204 5,938,327 436,949 7.36% 700,340 (263,391) -37.61% City Attorney 3,076,516 3,196,951 409,308 12.80% 596,938 (187,630) -31.43% Human Resources 4,300,090 4,464,113 508,305 11.39% 522,687 (14,382) -2.75% Finance 19,140,702 19,939,776 2,351,131 11.79% 2,503,339 (152,208) -6.08% Total General Government 50,122,585 52,432,549 4,778,732 9.11% 5,245,489 (466,757) -8.90% PUBLIC WORKS 24,857,521 26,175,381 3,492,899 13.34% 3,296,895 196,004 5.95% COMMUNITY DEVELOPMENT 5,121,256 5,227,061 826,894 15.82% 679,554 147,340 21.68% PARKS AND RECREATION 21,933,152 22,711,221 3,448,033 15.18% 3,170,571 277,462 8.75%
PUBLIC SAFETY
Fire 62,616,032 63,222,036 10,323,737 16.33% 10,895,343 (571,606) -5.25% Police 85,598,562 85,946,468 12,474,370 14.51% 12,636,356 (161,986) -1.28% Total Public Safety 148,214,594 149,168,504 22,798,107 15.28% 23,531,699 (733,592) -3.12% LIBRARY 11,135,937 11,229,696 1,587,753 14.14% 1,554,011 33,742 2.17% DEPARTMENTAL TOTAL 261,385,045 266,944,412 36,932,418 13.84% 37,478,219 (545,801) -1.46%
OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 1,198,809 1,198,809 1,198,809 100.00% 38,809 1,160,000 2989.00% Operating Transfer Out - Debt Services 1,402,440 1,402,440 1,402,440 100.00% 1,402,275 165 0.01% Operating Transfer Out - Maintenance Dtrct 942,413 942,413 942,413 100.00% 842,700 99,713 11.83% Operating Transfer Out - Cemetery 796,000 796,000 796,000 100.00% 870,000 (74,000) -8.51% Operating Transfer Out - CIP 7,305,499 7,305,499 7,305,499 100.00% 8,625,501 (1,320,002) -15.30% Total Other Financing Uses 11,645,161 11,645,161 11,645,161 100.00% 11,779,285 (134,124) -1.14% STADIUM OPERATION 8,765,352 8,793,722 2,374,727 27.00% 1,232,445 1,142,282 92.68% TOTAL GENERAL FUND 281,795,558$ 287,383,295$ 50,952,306$ 17.73% 50,489,949$ 462,357$ 0.92% Function
CITY OF SANTA CLARA
GENERAL FUND
EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2023/24 PY EXPENDITURES COMPARISON
8 City of Santa Clara
Financial Status Report as of August 31, 2023
General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances by program.
Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. Through August 31, 2023, expenditures totaled $0.7 million, or 4.4% of the budget. These expenditures are below the par level of 16.7%, and lower than prior year levels.
City Attorney: Actual expenditures through August totaled approximately $0.4 million, which is 12.8% of the budget, which is below par. Spending is significantly below the total expenditures through the same time last fiscal year by 31.4%. This decrease is due to internal service allocation charges, as they are not yet reflected in the August data as well as lower outside legal counsel services.
City Clerk: Through August, actual expenditures were tracking below budget at $0.2 million or approximately 10.1% of the budget. This expenditure level reflects a 35.3% increase in spending compared to last fiscal year due to higher salaries and benefits charges in the current year, partially offset by internal service allocation charges, which are not yet reflected in the August data.
City Council: Through August, expenditures were at 15.1% of budget, which is within budgeted levels.
Compared to the same period through last fiscal year, this reflects a significant increase in expenditures. This is a result of the reallocation of 1.0 Assistant to the City Manager position from the City Manager’s Office as approved as part of the FY 2023/24 and FY 2024/25 Adopted Operating Budget.
City Manager: The actual expenditures through August 31, 2023 totaled $0.4 million, or 7.4% of the budget, which is below par for this time of the year. Expenditures are approximately 37.6% lower compared with the spending level through the same period last fiscal year. This is a result of vacancy savings within the department and the reallocation of 1.0 Assistant to the City Manager position to the City Council as mentioned above.
Community Development Department: This department consists of three divisions: Planning, Building, and Housing and Community Services. The Building Division of this department is reflected in the Building Development Services Fund, which falls under the special revenue section of this report.
Through August, departmental expenditures for the Planning and Housing and Community Services divisions totaled $0.8 million, or 15.8% of the budget, which is below par of 16.7%. This expenditure level is 22% above the prior year is a result of higher salaries and benefits costs and higher contractual services spending in the current year.
Finance Department: Through August, the Department’s expenditures totaled $2.4 million, or 11.8% of the budget, which is below par. This expenditure level was approximately 6.1% lower than through the same period last year. Similar to the other departmental tracking, this is a result of the timing of the internal service allocation charges, which are not yet reflected in the August data.
Fire Department: Through August, actual expenditures totaled $10.3 million, or 16.3% of the budget, which is at par. These expenditures reflect a 5.3% decrease from expenditures through the same
9 City of Santa Clara
Financial Status Report as of August 31, 2023
period last fiscal year. This is primarily because, as approved as part of the FY 2023/24 and FY 2024/25 Adopted Operating Budget, approximately 9.0 FTE were reallocated to the newly established Fire Development Services Fund. These charges are reflected under the special revenue section of this report. Overtime expenditures are tracking at 31.5% of the budget, which is above par for this time of year. While this overtime figure is high, it is important to note that overtime is used to backfill for vacant positions and the vacancy savings offset a portion of the overtime costs.
Library Department: Through August, actual expenditures totaled $1.6 million, or 14.1% of the budget, which is below par, but slightly higher than expenditure levels last fiscal year. The higher spending is a result of the reopening of libraries.
Parks and Recreation Department: Through August, actual expenditures totaled $3.4 million, or
15.2% of the budget, which is below par, and slightly higher than prior year actuals of $3.2 million. This is primarily due to higher spend in the operating supplies and contractual services categories.
Police Department: Expenditures through August are tracking slightly below par at $12.5 million, or
14.5% of the budget. This is consistent with prior year expenditure levels.
Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures totaled $2.4 million through August, which is significantly higher than prior year levels. This is primarily due to higher personnel spend, particularly in overtime. Events at the Stadium during August included two pre- season NFL games as well as the Beyonce concert.
10 City of Santa Clara
Financial Status Report as of August 31, 2023
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of August 31, 2023. The amended budget reflects carryover encumbrances from fiscal year 2022/23 and budget amendments approved by the City Council through August 2023. Effective July 1, 2023, development related services in the Fire Department have been reallocated from the General Fund to the newly established Fire Development Services Fund, reflected below.
Both revenues and expenditures totaled approximately $3.6 million through the end of August. Overall, revenues and expenditures are tracking below par of 16.7%. In the Housing Successor Fund, the expenditures are significantly lower compared to last fiscal year due to a one-time special disbursement for a housing loan that occurred in July 2022.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 8/31/2023 received 8/31/2022 Prior Year Change Housing Authority Fund 252,495$ 252,495$ 57,919$ 22.94% 17,897$ 40,022$ 223.62% City Affordable Housing Fund 1,166,720 1,166,720 23,768 2.04% 75,663 (51,895) -68.59% Housing Successor Fund 1,306,326 1,306,326 152,797 11.70% 136,440 16,357 11.99% Housing and Urban Development 3,106,041 3,106,041 378,305 12.18% 78,408 299,897 382.48% Building Development Services
Fee Fund
15,611,000 15,611,000 2,460,157 15.76% 3,208,522 (748,365) -23.32% Fire Development Services Fee
Fund
2,935,000 2,935,000 575,352 19.60% 0 575,352 N/A
TOTAL 24,377,582$ 24,377,582$ 3,648,298$ 14.97% 3,516,930$ 131,368$ 3.74% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 8/31/2023 used 8/31/2022 Prior Year Change Housing Authority Fund 457,193$ 518,659$ 28,906$ 5.57% 39,308$ (10,402)$ -26.46% City Affordable Housing Fund 6,683,926 7,435,503 224,106 3.01% 166,835 57,271 34.33% Housing Successor Fund 873,227 1,216,887 220,176 18.09% 1,755,713 (1,535,537) -87.46% Housing and Urban Development 3,993,723 4,753,782 362,783 7.63% 389,875 (27,092) -6.95% Building Development Services
Fee Fund
13,689,592 15,018,230 2,303,565 15.34% 1,904,806 398,759 20.93% Fire Development Services Fee
Fund
3,109,073 3,109,073 438,405 14.10% 0 438,405 N/A
TOTAL 28,806,734$ 32,052,134$ 3,577,941$ 11.16% 4,256,537$ (678,596)$ -15.94%
PRIOR YEAR EXPENDITURE COMPARISON
CITY OF SANTA CLARA
SPECIAL REVENUE FUNDS
REVENUE AND EXPENDITURE - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2023/24 PRIOR YEAR REVENUE COMPARISON EXPENDITURES - FISCAL YEAR 2023/24
11 City of Santa Clara
Financial Status Report as of August 31, 2023
Governmental Capital Improvement Funds
The table below lists the revenue for selected capital improvement funds. The amended budget reflects current year appropriations, prior year carryover, and budget amendments approved through August 2023. As of August 31, 2023, the capital fund revenue totaled $0.4 million.
REVENUES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 8/31/2023 Use d Parks & Recreation -$ 4,280,995$ 4,280,995$ 59,827$ 1.40% Streets & Highways 5,495,232 15,988,284 21,483,516 2,844 0.01% Storm Drain 1,454,000 - 1,454,000 240,218 16.52% Related Santa Clara Developer 977,582 - 977,582 127,316 13.02% Patrick Henry Drive Infrastructure
Improvement Fund
140,486 - 140,486 - 0.00% Tasman East Specific Infrastructure
Improvement Fund
- - - 6,581 NA TOTAL 8,067,300$ 20,269,279$ 28,336,579$ 436,786$ 1.54%
CITY OF SANTA CLARA
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
The table below lists the total amended budgeted amounts for expenditures in the Capital Improvement Funds. Similar to the revenue table, the amended expenditure budgets consist of current year appropriations, prior year carryover encumbrance balances in Governmental Capital Improvement Funds, and budget amendments approved through August 2023. As of August 31, 2023, capital fund expenditures totaled $5.1 million, or 3.4% of the amended budget, well below par of 16.7%.
As part of the adoption of the FY 2023/24 and FY 2024/25 biennial operating budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2023.
Necessary additional adjustments to the capital carryover amounts will be included as part of the Budgetary Year-End Report for FY 2022/23, anticipated to be brought forward for City Council approval in December 2023.
12 City of Santa Clara
Financial Status Report as of August 31, 2023
EXPENDITURES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 8/31/2023 Use d Parks & Recreation 2,719,457$ 38,184,533$ 40,903,990$ 2,437,378$ 5.96% Streets & Highways 17,776,700 62,604,298 80,380,998 2,071,110 2.58% Storm Drain 807,414 4,002,049 4,809,463 43,716 0.91% Fire 427,374 1,303,898 1,731,272 58,229 3.36% Library - 301,105 301,105 - 0.00% Public Buildings 1,590,019 9,319,499 10,909,518 143,858 1.32% General Gov't - Other 941,000 8,688,990 9,629,990 240,878 2.50% City Affordable Housing Capital Fund - 1,600,000 1,600,000 - Related Santa Clara Developer 977,582 523,109 1,500,691 129,864 8.65% Patrick Henry Drive Infrastructure
Improvement Fund
71,281 - 71,281 2,305 3.23% Tasman East Specific Infrastructure
Improvement Fund
27,330 1,423,145 1,450,475 2,305 0.16% TOTAL 25,338,157$ 127,950,626$ 153,288,783$ 5,129,643$ 3.35%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
13 City of Santa Clara
Financial Status Report as of August 31, 2023
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of August 31, 2023. Overall, revenues and expenditures are tracking below budgeted levels.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 8/31/2023 received 8/31/2022 Prior Year Change Electric Utility Fund 1,008,222,211$ 1,008,222,211$ 72,784,575$ 7.22% 64,457,371$ 8,327,204$ 12.92% Water Utility Fund 60,726,490 60,726,490 7,581,337 12.48% 8,128,611 (547,274) -6.73% Sewer Utility Fund 73,500,825 78,500,825 4,974,289 6.34% 4,865,778 108,511 2.23% Cemetery Fund 750,000 750,000 77,494 10.33% 134,321 (56,827) -42.31% Solid Waste Utility Fund 39,577,957 39,577,957 4,503,065 11.38% 4,076,095 426,970 10.47% Water Recycling Fund 7,668,868 7,668,868 1,316,091 17.16% 917,623 398,468 43.42% TOTAL REVENUE 1,190,446,351$ 1,195,446,351$ 91,236,851$ 7.63% 82,579,799$ 8,657,052$ 10.48% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 8/31/2023 Use d 8/31/2022 Prior Year Change Electric Utility Fund 681,590,706$ 687,147,483$ 85,516,893$ 12.45% 69,650,517$ 15,866,376$ 22.78% Water Utility Fund 54,015,131 56,158,029 4,732,530 8.43% 3,244,601 1,487,929 45.86% Sewer Utility Fund 53,980,961 54,497,527 7,792,537 14.30% 6,458,697 1,333,840 20.65% Cemetery Fund 1,534,349 1,534,349 169,029 11.02% 192,373 (23,344) -12.13% Solid Waste Utility Fund 38,782,622 42,314,984 5,186,542 12.26% 3,530,642 1,655,900 46.90% Water Recycling Fund 8,234,584 8,234,584 156,371 1.90% 1,431,021 (1,274,650) -89.07% TOTAL - Operating
Appropriations
838,138,353$ 849,886,956$ 103,553,902$ 12.18% 84,507,851$ 19,046,051$ 22.54% PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2023/24
CITY OF SANTA CLARA
ENTERPRISE OPERATING FUNDS
REVENUES AND EXPENSES - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2023/24 PRIOR YEAR REVENUE COMPARISON
Both revenues and expenditures are tracking significantly higher than prior year levels. In the Electric Utility Fund, higher debt retirement and resource costs were incurred this fiscal year when compared to July 2022. Sales have also come in higher in the Cemetery Fund. In the Solid Waste Utility Fund, there were higher refuse collection charges, alongside higher garbage collection expenses as well. The significant drop in expenditure levels in the Water Recycling Fund is due to the timing of resource/production invoice payments.
Revenues in the electric (which also includes the Electric Debt Service Fund), water, and sewer utility (which also includes the Sewer Debt Service Fund) and water recycling funds are primarily from customer service charges. The activity levels for these customer service charges also impact the resource and production costs on the expenditure side for these funds. The lower the revenue from customer service charges, the lower the expenditures in the resource and production category.
14 City of Santa Clara
Financial Status Report as of August 31, 2023
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actual revenue through August 31, 2023 totaled $1.4 million, consisting primarily of developer contributions in the Electric Utility Fund and sewer fees in the Sewer Utility Fund. Enterprise capital fund expenses totaled $9.4 million, or 1.6% of the amended budget. Similar to the general government capital funds, capital funds were carried over from FY 2022/23 as part of the FY 2023/24 and FY 2024/25 budget adoption process for those projects that were not expected to be completed by June 30, 2023. Additional necessary adjustments to the capital carryover amounts based on actual year-end expenditures will be brought forward for City Council approval in December 2023, as part of the budgetary year-end report for FY 2022/23.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 8/31/2023 Used Electric Utility Fund 37,980,480$ 40,599,727$ 78,580,207$ 1,294,415$ 1.65% Sewer Utility Fund - - - 74,959 N/A Solid Waste Utility Fund 258,000 - 258,000 3,813 1.48% TOTAL - Revenue 38,238,480$ 40,599,727$ 78,838,207$ 1,373,187$ 1.74% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 8/31/2023 Used Electric Utility Fund 355,072,203$ 161,038,869$ 516,111,072$ 5,396,442$ 1.05% Street Lighting (1) 125,000 3,452,509 3,577,509 13,082 0.37% Water Utility Fund 5,165,000 5,316,334 10,481,334 396,837 3.79% Sewer Utility Fund 13,721,802 28,349,075 42,070,876 3,120,604 7.42% Cemetery Fund - 245,335 245,335 - 0.00% Solid Waste Utility Fund 765,000 271,756 1,036,756 120,104 11.58% Water Recycling Fund 50,000 - 50,000 4,033 8.07% Convention Center Capital
Fund
- 2,146,482 2,146,482 328,480 15.30%
TOTAL - CIP
Appropriations
374,899,004$ 200,820,360$ 575,719,364$ 9,379,582$ 1.63%
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
SUMMARY OF EXPENSES
EXPENSES - FISCAL YEAR 2023/24
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
REVENUES - FISCAL YEAR 2023/24
(1) Street Lighting fund is part of Electric Capital Improvement Funds
15 City of Santa Clara
Financial Status Report as of August 31, 2023
Fund Reserves
By policy, City Council established the City’s General Contingency Reserve, under which reserves for Budget Stabilization and Capital Projects were established. • Budget Stabilization Reserve is set aside for weathering economic downturns, emergency financial crisis, or disaster situations. The reserve target is equal to the expenditures of the City’s General Fund operations for three months (90-day or 25% General Fund Adopted Operating Budget). In FY 2023/24, the City Council approved an exception to the policy to allow the Reserve to a minimum of 15% of expenditures.
• Capital Projects Reserve earmarks funds for the Capital Improvement Program.
Other General Reserves and Enterprise Fund Reserves included in this report are highlighted as follows:
• Technology Fee Reserve is set aside to update and/or replace the City’s aging technology and to ensure internal controls are in compliance with current business standard and legal requirements.
• Land Sale Reserve is net proceeds from the sale of City-owned land, with interest earned on these funds available to be appropriated for General Fund operating expenditures. This reserve is available for appropriation by City Council action.
• The Electric Utility Rate Stabilization Reserve and Operations and Maintenance Reserve assures sufficient operating cash is available to cover day-to-day expenses, address unforeseen cost increases or revenue shortfalls, and ensure debt service coverage. • The Replacement and Improvement Reserve in the Water and Sewer Utility Funds is for future capital improvement.
The table below summarizes select reserve balances.
16 City of Santa Clara
Financial Status Report as of August 31, 2023
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 47,592,520$
Capital Projects Reserve 7,118,949
Land Sale Reserve 18,481,037
Technology Fee Reserve 2,581,146
Electric Rate Stabilization Fund Reserve 56,776,613$
Electric Operations and Maintenance Reserve 150,765,556 Replacement & Improvement 303,090$
TOTALS 75,773,652$ 207,542,169$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
August 31, 2023
Donations to the City of Santa Clara
Donations received by department during the month of August 2023 and for fiscal year 2023/24 are shown in the table below.
Department Aug-23
Fis cal Year
2023/24
Year To Date Designated Use
City Manager's Office 201 201 Help Your Neighbor Parks & Recreation - 8,000 Case Management Parks & Recreation 108 133 Roberta Jones Jr. Theatre
Parks & Recreation 10,675 12,425 Wade Brummal
Police 0 75,000 TEAM 200
TOTALS 10,984$ 95,759$