City Council and Authorities Concurrent
December 12, 2023

61.90% 62.72% 62.97% 62.02% 62.18% 65.57% 67.42%
89,410,939$ 81,872,333$ 75,515,390$ 71,285,526$ 61,942,363$ 58,051,406$ 58,020,890$ 340.61% 347.76% 356.81% 371.95% 390.63% 367.07% 340.41% Changes in assumptions: The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Effective with June 30, 2021 valuation date (2022 measurement date), the discount rate was reduced from 7.15% to 6.90%.

The accounting discount rate was 7.15% for measurement dates 2017 through 2021. In 2015 and 2016, the discount rate was 7.65% to reflect an adjustment of administrative expense. In 2014, amounts reported were based on the 7.5% discount rate.

CITY OF SANTA CLARA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

MISCELLANEOUS PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years for the Measurement Periods Ended June 30 (1) 156

Miscellaneous Plan
2023 2022 2021
Actuarially determined contribution 36,763,759$ 34,126,897$ 31,035,143$ Contributions in relation to the actuarially
determined contributions (36,763,759) (34,126,897) (31,035,143) Contribution deficiency (excess) -$ -$ -$
Covered payroll 100,304,469$ 92,642,754$ 89,321,766$ Contributions as a percentage of
covered payroll 36.65% 36.84% 34.75%
Notes to schedule
Valuation date 6/30/2020 6/30/2019 6/30/2018
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, closed Remaining amortization period 24 years as of valuation date Asset valuation method Fair value of assets
Inflation 2.75% for 2015 to 2019, 2.675% for 2020 and 2.50% for 2021 through 2023 Salary increases Varies by Entry Age and Service
Investment rate of return
Retirement age
Mortality
(1) Fiscal year 2014-15 was the first year of implementation.

CITY OF SANTA CLARA

SCHEDULE OF PLAN CONTRIBUTIONS

MISCELLANEOUS PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years Ended June 30
(1)

7.50% for 2015 to 2018, 7.375%, for 2019, 7.25% for 2020, and 7% for 2021 th
rough 2023, net of pension plan investment expense, including inflation The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale, MP-2016 published by the Society of Actuaries.

The probabilities of Retirement are based on the CalPERS Experience Study Schedule of Plan Contributions (Miscellaneous Plan)
157

2020 2019 2018 2017 2016 2015
28,987,800$ 23,615,964$ 25,256,224$ 21,613,984$ 18,543,534$ 15,257,771$ (28,987,800) (23,615,964) (25,256,224) (21,613,984) (18,543,534) (15,257,771) -$ -$ -$ -$ -$ -$
89,410,939$ 81,872,333$ 75,515,390$ 71,285,526$ 61,942,363$ 58,051,406$

32.42% 28.84% 33.45% 30.32% 29.94% 26.28%
6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012

CITY OF SANTA CLARA

SCHEDULE OF PLAN CONTRIBUTIONS

MISCELLANEOUS PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years Ended June 30
(1)
158

Safety Plan
2022 2021
Total Pension Liability
Service cost 17,072,526$ 15,750,690$
Interest 60,648,121 59,165,587
Changes of assumptions 27,501,978 -
Differences between expected and actual experience (3,595,795) 7,316,002 Benefit payments, including refunds of employee contributions (49,070,549) (46,961,121) Net change in total pension liability 52,556,281 35,271,158 Total pension liability - beginning 871,051,109 835,779,951 Total pension liability - ending 923,607,390$ 871,051,109$ Plan Fiduciary Net Position
Contributions - employer 31,703,230$ 29,084,516$
Contributions - employee 5,872,012 5,742,937
Net investment income (49,438,525) 122,207,114
Benefit payments, including refunds of employee contributions (49,070,549) (46,961,121) Plan to plan resource movement - -
Administrative expense (405,431) (540,727)
Other Misc Income/(Expense)
(2)
-
Net change in plan fiduciary net position (61,339,263) 109,532,719 Plan fiduciary net position - beginning 650,833,939 541,301,220 Plan fiduciary net position - ending 589,494,676$ 650,833,939$ Net Pension Liability - ending 334,112,714$ 220,217,170$

63.83% 74.72%
Covered payroll 57,190,646$ 54,912,443$
Net pension liability as percentage of covered payroll 584.21% 401.03% Notes to schedule:
(1) Fiscal year 2014-15 was the first year of implementation.

Plan fiduciary net position as a percentage of the total pension liability (2) During fiscal year 2017-18, as a result of GASB No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other Than Pensions, CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB No. 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during fiscal year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pension.

CITY OF SANTA CLARA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

SAFETY PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years for the Measurement Periods Ended June 30 (1)
Schedule of Changes in the Net Pension Liability and Related Ratios (Safety Plan) 159

2020 20 19 2018 2017 2016 2015 2014
15,518,467$ 14,861,460$ 13,999,625$ 13,111,358$ 10,985,005$ 10,678,931$ 10,748,085$ 56,740,930 54,154,256 51,713,042 49,741,737 48,410,844 46,944,730 45,454,864 - - (3,333,870) 40,842,398 - (11,249,844) -
10,124,845 8,480,853 5,782,119 (1,814,831) (3,491,487) (3,604,245) - (44,599,326) (41,984,265) (38,978,890) (37,370,686) (35,868,203) (34,372,454) (33,072,631) 37,784,916 35,512,304 29,182,026 64,509,976 20,036,159 8,397,118 23,130,318 797,995,035 762,482,731 733,300,705 668,790,729 648,754,570 640,357,452 617,227,134 835,779,951$ 797,995,035$ 762,482,731$ 733,300,705$ 668,790,729$ 648,754,570$ 640,357,452$ 26,654,865$ 23,458,623$ 20,510,633$ 19,580,881$ 16,679,012$ 14,692,277$ 12,839,821$ 5,589,396 5,781,715 5,395,755 4,913,868 4,376,079 4,079,023 4,866,079 26,348,251 33,408,137 40,902,179 49,621,113 2,362,110 10,236,992 70,347,760 (44,599,326) (41,984,265) (38,978,890) (37,370,686) (35,868,203) (34,372,454) (33,072,631) - - (1,182) - 788 - -
(744,424) (362,341) (751,243) (658,507) (279,579) (516,273) - - 1,182 (1,426,623) - - - -
13,248,762 20,303,051 25,650,629 36,086,669 (12,729,793) (5,880,435) 54,981,029 528,052,458 507,749,407 482,098,778 446,012,109 458,741,902 464,622,337 409,641,308 541,301,220$ 528,052,458$ 507,749,407$ 482,098,778$ 446,012,109$ 458,741,902$ 464,622,337$ 294,478,731$ 269,942,577$ 254,733,324$ 251,201,927$ 222,778,620$ 190,012,668$ 175,735,115$

64.77% 66.17% 66.59% 65.74% 66.69% 70.71% 72.56%
53,564,578$ 50,808,770$ 47,569,993$ 47,064,869$ 41,116,053$ 38,909,866$ 38,845,554$ 549.76% 531.29% 535.49% 533.74% 541.83% 488.34% 452.39% Postemployment Benefit Plans Other ThanPensions, CalPERS reported its proportionate share of activityrelated to Changes in assumptions: The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Effective with June 30, 2021 valuation date (2022 measurement date), the discount rate was reduced from 7.15% to

6.90%. The accounting discount rate was 7.15% for measurement dates 2017 through 2021. In 2015 and 2016, the discount rate was 7.65% to reflect an adjustment of administrative expense. In 2014, amounts reported were based on the 7.5% discount rate.

CITY OF SANTA CLARA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

SAFETY PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years for the Measurement Periods Ended June 30 (1)
160

Safety Plan
2023 2022 2021
Actuarially determined contribution 35,094,101$ 32,084,531$ 29,295,456$ Contributions in relation to the actuarially
determined contributions (35,094,101) (32,084,531) (29,295,456) Contribution deficiency (excess) -$ -$ -$
Covered payroll 62,842,726$ 57,190,646$ 54,912,443$
Contributions as a percentage of
covered payroll 55.84% 56.10% 53.35%
Notes to schedule
Valuation date 6/30/2020 6/30/2019 6/30/2018
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, closed Remaining amortization period 24 years as of valuation date Asset valuation method Fair value of asset
Inflation 2.75% for 2015 to 2019, 2.675% for 2020 and 2.50% for 2021 through 2023 Salary increases Varies by Entry Age and Service
Investment rate of return
Retirement age
Mortality
(1) Fiscal year 2014-15 was the first year of implementation.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale. MP- 2016 published by the Society of Actuaries.

The probabilities of Retirement are based on the CalPERS Experience Study

CITY OF SANTA CLARA

SCHEDULE OF PLAN CONTRIBUTIONS

SAFETY PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years Ended June 30
(1)

7.50% for 2015 to 2018, 7.375%, for 2019, 7.25% for 2020, and 7% for 2021 th
rough 2023, net of pension plan investment expense, including inflation Schedule of Plan Contributions (Safety Plan)
161

2020 2019 2018 2017 2016 2015
27,099,469$ 23,484,760$ 22,002,506$ 19,735,867$ 17,365,058$ 14,776,850$ (27,099,469) (23,484,760) (22,002,506) (19,735,867) (17,365,058) (14,776,850) -$ -$ -$ -$ -$ -$
53,564,578$ 50,808,770$ 47,569,993$ 47,064,869$ 41,116,053$ 38,909,866$

50.59% 46.22% 46.25% 41.93% 42.23% 37.98%
6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 The probabilities of mortality are based on the 2017 CalPERS Experience Study rates include 15 years of projected mortality improvement using 90% of Scale. MP-

CITY OF SANTA CLARA

SCHEDULE OF PLAN CONTRIBUTIONS

SAFETY PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years Ended June 30
(1)
162
2023 2022 2021 2020 2019 2018 2017
Total OPEB Liability
Service cost 2,415 $ 2,344$ 2,091 $ 2,030 $ 2,264 $ 2,198 $ 2,134 $ Interest 3,244 3,145 3,292 3,200 3,478 3,343 3,194 Differences between expected and actual
experience (1,652) - (326) - (1,644) - -
Changes of assumptions (760) - 1,709 - (5,838) - - Benefit payments including refunds (3,499) (3,437) (3,592) (3,498) (3,096) (3,036) (2,034) Net change in total OPEB liability (252) 2,052 3,174 1,732 (4,836) 2,505 3,294 Total OPEB liability - beginning 67,638 65,586 62,412 60,680 65,516 63,011 59,717 Total OPEB liability - ending 67,386 $ 67,638$ 65,586 $ 62,412 $ 60,680 $ 65,516 $ 63,011 $ Plan Fiduciary Net Position
Contributions - employer 4,915 $ 5,068$ 4,535 $ 4,696 $ 5,366 $ 6,300 $ 2,733 $ Net investment income 1,094 (3,222) 2,957 1,403 1,410 524 738 Benefit payments including refunds (3,499) (3,437) (3,592) (3,498) (3,096) (3,036) (2,034) Administrative expense (65) (62) (59) (100) (91) (71) (73) 2,445 (1 ,653) 3,841 2,501 3,589 3,717 1,364 27,223 28,876 25,035 22,534 18,945 15,228 13,864 29,668 $ 27,223$ 28,876 $ 25,035 $ 22,534 $ 18,945 $ 15,228 $ 37,718 $ 40,415$ 36,710 $ 37,377 $ 38,146 $ 46,571 $ 47,783 $

44.0% 40.2% 44.0% 40.1% 37.1% 28.9% 24.2%
180,100 $ 169,613$ 163,594 $ 164,431 $ 151,453 $ 135,297 $ 102,468 $

20.9% 23.8% 22.4% 22.7% 25.2% 34.4% 46.6%
(1) Fiscal year 2016-17 was the first year of implementation.

CITY OF SANTA CLARA

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS

OPEB PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PLAN Last Ten Fiscal Years for the Measurement Periods Ended June 30 (1) (In Thousands)
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending
Net OPEB Liability - ending
Plan fiduciary net position as a percentage of
the total OPEB liability
Covered payroll
Net OPEB liability as percentage of covered
payroll
Notes to schedule:

Schedule of Changes in the Net OPEB Liability and Related Ratios (OPEB Plan) 163
202 3 2022 2021 2020 2019 2018 2017
Actuarially determined contribution 4,896$ 4,748$ 4,826 $ 4,681 $ 5,306 $ 5,466$ 2,981 $ Contributions in relation to the actuarially
determined contributions 4,914 5,068 4,535 4,696 5,366 6,300 2,981 Contribution deficiency (excess) (18)$ (320)$ 291 $ (15)$ (60)$ (834)$ - $ Covered payroll 180,100 169,613 163,594 164,431 151,453 135,297$ 102,468 $ Contributions as a percentage of
covered payroll 2.72% 2.99% 2.77% 2.86% 3.54% 4.66% 2.91% Notes to schedule:
(1) Fiscal year 2016-17 was the first year of implementation.

CITY OF SANTA CLARA

SCHEDULE OF PLAN CONTRIBUTIONS

OPEB PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PLAN Last Ten Fiscal Years Ended June 30
(1)
(In Thousands)
Schedule of Plan Contributions (OPEB Plan)
164

Actuarial valuation date June 30, 2020
Actuarial cost method Entry Age Normal, Level Percentage of Payroll Amortization method Level percent of payroll
Unfunded liability amortization
Asset valuation method
Discount rate 5,25%
General inflation 2.75%
Healthcare trend
Mortality CalPERS 1997-2015 Experience Study
Mortality improvement

CITY OF SANTA CLARA
Notes to Schedule of Employer Contribution (OPEB Plan)
Post-retirement mortality projected fully generational with Scale MP-2020
Methods and Assumptions for 2022-23 Actuarially Determine Contributions 15 years (open period) for method, assumption, plan changes, and gains and losses
Maximum 30-year combined period
Investment gains and losses spread over a 5-year rolling period.

Not less that 80% nor greater than 120% of fair value
Non-Medicare -7% for 2022, decreasing to an ultimate rate of 4% in 2076
Medicare (Non-Kaiser)- 6.10% for 2022 decreasing to an ultimate rate of 4% in 2076
30 years (closed period) for initial UAAL
(17 Years remaining on June 30, 2022)
20 years (closed period) for implied subsidy on 06/30/2019 (17 years remaining on June 30, 2022)
Medicare (Kaiser)- 5% for 2022 decreasing to an ultimate rate of 4% in 2076
Notes to Schedule of Employer Contributions (OPEB Plan) 165

Variance with
Budgeted Amounts Final Budget
Actual Amounts Positive
Original Final Budgetary Basis (Negative)

REVENUES
Taxes:

Sales 60,173,000$ 60,173,000$ 64,497,774$ 4,324,774$ Ad valorem 75,261,000 84,125,000 84,599,469 474,469 Transient occupancy 12,600,000 12,600,000 18,989,011 6,389,011 Other 6,260,000 6,260,000 6,378,388 118,388
Licenses, permits, fines and penalties 5,062,000 5,212,000 6,541,566 1,329,566 Intergovernmental 310,000 891,638 1,635,314 743,676 Charges for services 38,622,245 41,865,031 43,239,022 1,373,991 Contributions in-lieu of taxes 26,170,000 26,170,000 29,584,030 3,414,030 Interest and rents 13,868,766 13,868,766 18,259,848 4,391,082 Other 150,000 215,761 2,928,860 2,713,099
Total Revenues 238,477,011 251,381,196 276,653,282 25,272,086

EXPENDITURES
General Government:

General Administration 22,443,226 23,388,964 18,623,994 4,764,970 City Clerk 2,076,112 2,089,411 2,077,196 12,215
City Attorney 3,202,735 3,202,735 2,860,231 342,504 Human Resources 4,508,710 4,394,360 3,716,192 678,168 Finance 19,045,131 19,230,938 18,130,187 1,100,751 Total General Government 51,275,914 52,306,408 45,407,800 6,898,608 Public Works 24,021,840 24,136,056 22,978,066 1,157,990 Parks and Recreation 21,695,302 21,881,268 20,356,781 1,524,487 Public Safety:

Police 84,615,023 85,494,537 80,884,552 4,609,985
Fire 62,298,852 67,730,555 67,077,230 653,325
Total Public Safety 146,913,875 153,225,092 147,961,782 5,263,310 Planning and Inspection 4,779,688 4,854,343 4,054,694 799,649 Library 11,889,451 12,127,860 10,569,401 1,558,459 Total Expenditures 260,576,070 268,531,027 251,328,524 17,202,503 For the year ended June 30, 2023

CITY OF SANTA CLARA

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL (NON-GAAP LEGAL BASIS)
General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Non-GAAP Legal Basis)
166

Variance with
Budgeted Amounts Final Budget
Actual Amounts Positive
Original Final Budgetary Basis (Negative)

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (22,099,059) (17,149,831) 25,324,758 42,474,589

OTHER FINANCING SOURCES (USES)
Transfers in 3,581,374 4,425,680 4,425,214 (466)
Transfers (out) (11,779,285) (15,658,501) (15,658,501) - Total Other Financing Sources (Uses) (8,197,911) (11,232,821) (11,233,287) (466)

EXCESS (DEFICIENCY) OF REVENUES AND

OTHER SOURCES OVER EXPENDITURES
AND OTHER USES - BUDGETARY BASIS (30,296,970)$ (28,382,652)$ 14,091,471$ 42,474,123$ ADJUSTMENTS TO BUDGETARY BASIS:

Prior year encumbrances recognized on the GAAP basis (4,445,951) Current year encumbrances recognized on the budgetary basis 4,761,429 Net change in receivables recognized on the GAAP basis (2,133,139) Net change in accrued liabilities recognized on the GAAP basis (518,618) Net change in funds for GAAP Basis not included in annual budget 446,062 Beginning Fund balance 141,114,721
Ending Fund balance 153,315,975$
For the year ended June 30, 2023
(continued)

CITY OF SANTA CLARA

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL (NON-GAAP LEGAL BASIS)
167

Variance
Actual Amount Positive
Original Final Budgetary Basis (Negative)

REVENUES
Licenses, permits, fines, and penalties - $ -$ 1,176$ 1,176 $ Charges for services - - 1,215 1,215
Interest and rents 32,000 32,000 75,550 43,550
Other 318,000 1,274,326 1,126,022 (148,304)
Total Revenues 350,000 1,306,326 1,203,963 (102,363)

EXPENDITURES
Total General Administration 1,242,599 5,917,569 5,795,495 122,074 Total Expenditures 1,242,599 5,917,569 5,795,495 122,074

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (892,599) (4,611,243) (4,591,532) 19,711

EXCESS (DEFICIENCY) OF REVENUES AND

OTHER SOURCES OVER EXPENDITURES
AND OTHER USES (892,599) $ (4,611,243)$ (4,591,532) 19,711 $ ADJUSTMENTS TO BUDGETARY BASIS:

Expenditures of prior year encumbrances recognized on the GAAP basis (131,579) Current year encumbrances recognized on the budgetary basis 343,660 Net change in accrued liabilities recognized on the GAAP basis (44,445) Beg
inning Fund balance 15,322,517
Ending Fund balance 10,898,621$

CITY OF SANTA CLARA

SANTA CLARA HOUSING SUCCESSOR

SCHEDULE OF REVENUES, EXPENDITURES

BUDGET AND ACTUAL (NON-GAAP LEGAL BASIS)
Budgeted Amounts
For the year ended June 30, 2023
AN

D CHANGES IN FUND BALANCES
Santa Clara Housing Successor Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Non-GAAP Legal Basis)

CITY OF SANTA CLARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2023
168

NOTE 1 – REQUIRED SUPPLEMENTARY INFORMATION
A. BUDGETS AND BUDGETARY ACCOUNTING
The results of operations are presented in the budget and actual comparison statement in accordance with the budgetary process (budgetary basis) to provide a meaningful comparison with the budget.

The major differences between the budgetary basis actual and GAAP basis actual are as follows:
 Year-end encumbrances are recognized as the equivalent of expenditures in the budgetary basis financial statements, while encumbered amounts are not recognized as expenditures on the GAAP basis until the liability is incurred.
 Expenditures of prior year encumbrances are recognized on the GAAP basis in the current year, while on the budgetary basis prior year encumbrances were recognized in the prior year.  Accrued liabilities and compensated absences are recognized on the GAAP basis, while the budgetary basis does not recognize accrued liabilities.
 Revenues considered susceptible to accrual on the GAAP basis are not recognized on the budgetary basis until received.
 Special item resulted from dissolution of the Agency are included in the City’s GAAP basis financial statements. However, formal budgets are not prepared for non-cash transactions, and as such are excluded from the budgetary basis financial schedules.
 Increases to certain GAAP basis advances to other funds are treated as expenditures for budgetary basis financial statements.

Notes to Required Supplementary Information
Supplementary Information
Thi
s page intentionally left blank
171

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

GAS TAX
The fund accounts for revenues and expenditures received from the State under Street and Highways Codes Sections 2105 (Gas Tax 2105), 2106 (Collier-Unruh) and 2107 (Special Gas Tax) and from the State under the Road Repair and Accountability Act of 2017 under the Streets and Highways Code Section 2030. The allocations must be spent for street maintenance or construction and a limited amount for engineering.

HUD PROGRAMS
This fund accounts for grant funds received from other governmental agencies for the purpose of developing viable urban communities.

CITY AFFORDABLE HOUSING
This fund accounts for the City’s Below Market Housing Program for low and moderate income residents.

SANTA CLARA HOUSING AUTHORITY FUND
On February 22, 2011, the Santa Clara Housing Authority (SCHA), a special revenue fund, was established to account for housing loans to assist in providing affordable housing. On March 8, 2011, the City, former RDA, and the SCHA executed an assignment and assumption agreement whereby the SCHA assumed responsibility for housing loans for qualifying individuals and groups. Loans assigned were made under various programs; substantially all are long-term in nature.

MAINTENANCE
This fund accounts for the maintenance of the Lawrence Station Community Facility District and two Parking Districts located near the City’s Convention Center and the downtown area. Funds are received by means of a Special Benefit Assessment levied against the property owners in the respective districts.

OPERATING GRANTS FUND
This fund accounts for grant funds received from other governmental agencies for various operating activities.

NEW DEVELOPMENT SERVICE FEE
This fund accounts for the revenues and expenditures from the new development-related fees that are imposed upon new development projects in the City.
172
This page intentionally left blank

CITY OF SANTA CLARA
NON-MAJOR GOVERNMENTAL FUNDS (continued)
173

DEBT

SERVICE FUNDS

PUBLIC FACILITIES FINANCING CORPORATION (PFFC)
This fund accumulates monies for the repayment of Certificates of Participation, which are financed by lease payments made by the City’s General Fund to the PFFC for use of the Police Administration Building and Library sites.

CAPITAL PROJECTS FUNDS

PARKS AND RECREATION FACILITIES
This fund was established to account for revenues, contributions and reimbursements received and costs incurred in connection with the acquisition and construction of the City parks.

STREETS AND HIGHWAYS IMPROVEMENT
This fund is used to account for revenues and expenditures related to road construction and traffic improvements.

STORM DRAIN IMPROVEMENT
This fund is used to account for revenues and expenditures related to the construction or modification of the City’s storm drainage system.

FIRE DEPARTMENT IMPROVEMENT
This fund is used to account for revenues and expenditures related to the construction or modification of City fire stations.

LIBRARY DEPARTMENT IMPROVEMENT
This fund is used to account for revenues and expenditures related to the construction or modification of the City’s library facilities.

PUBLIC FACILITIES
This fund is used to account for revenues and expenditures related to the construction, acquisition or modification of public improvements not accounted for in another Capital Projects Fund. 174

HUD
City Affordable
Gas Tax Programs Housing
ASSETS
Cash and investments:

Pooled cash and investments 3,036,522$ 960,882$ 16,987,052$ Investments with fiscal agent - current - - -
Restricted cash - - -
Receivables (net of allowance for uncollectibles):

Accounts - - -
Loans - 11,045,173 58,575,000
Intergovernmental 795,010 200,358 -
Investments with fiscal agent - noncurrent - - -
Total Assets 3,831,532$ 12,206,413$ 75,562,052$

LIABILITIES
Accrued liabilities -$ 250,798$ 131,581$
Total Liabilities - 250,798 131,581

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Loans - 11,045,173 58,575,000
Total Deferred Inflows of Resources - 11,045,173 58,575,000

FUND BALANCES
Restricted 3,831,532 910,442 16,855,471
Committed - - -
Total Fund Balances 3,831,532 910,442 16,855,471
Total Liabilities, Deferred Inflows of Resources
and Fund Balances 3,831,532$ 12,206,413$ 75,562,052$

NON-MAJOR GOVERNMENTAL FUNDS

CITY OF SANTA CLARA

COMBINING BALANCE SHEET
June 30, 2023

SPECIAL REVENUE FUNDS
Combining Balance Sheet
175

Santa Clara Operating New Development Public Facilities Housing Authority Maintenance Grants Fund Service Fee Financing Corp. 4,455,408$ 1,346,510$ 1,350,601$ 34,969,769$ 17,327$ - - - - 11,187
- 171,630 - - -
- 393,004 - - -
6,406,008 - - - -
- 674 44,786 - -
- - - - 716,910
10,861,416$ 1,911,818$ 1,395,387$ 34,969,769$ 745,424$ 7,423$ 79$ 137,448$ 697,380$ -$
7,423 79 137,448 697,380 -
6,406,008 - - - -
6,406,008 - - - -
- 1,911,739 1,257,939 480,756 745,424
4,447,985 - - 33,791,633 -
4,447,985 1,911,739 1,257,939 34,272,389 745,424 10,861,416$ 1,911,818$ 1,395,387$ 34,969,769$ 745,424$

DEBT SERVICE FUNDSPECIAL REVENUE FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
June 30, 2023
176

Parks Streets
and and Storm
Recreation Highways Drain
Facilities Improvement Improvement
ASSETS
Cash and investments:

Pooled cash and investments 58,238,274$ 56,328,448$ 5,011,382$ Investments with fiscal agent - current - - -
Restricted cash - 2,230,329 -
Receivables (net of allowance for uncollectibles):

Accounts - - 130,424
Loans - - -
Intergovernmental - 205,537 -
Investments with fiscal agent - noncurrent - - -
Total Assets 58,238,274$ 58,764,314$ 5,141,806$

LIABILITIES
Accrued liabilities 2,642,611$ 3,363,550$ 251,223$
Total Liabilities 2,642,611 3,363,550 251,223

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Loans - - -
Total Deferred Inflows of Resources - - -

FUND BALANCES
Restricted 54,247,324 43,430,147 433,968
Committed 1,348,339 11,970,617 4,456,615
Total Fund Balances 55,595,663 55,400,764 4,890,583 Total Liabilities, Deferred Inflows of Resources
and Fund Balances 58,238,274$ 58,764,314$ 5,141,806$

CAPITAL PROJECTS FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
June 30, 2023 (continued)
177

Total
Fire Library Non-Major
Department Department Public Governmental
Improvement Improvement Facilities Funds
1,320,173$ 301,104$ 22,491,951$ 206,815,403$
- - - 11,187
- - - 2,401,959
- - 1,035,980 1,559,408
- - - 76,026,181
- - - 1,246,365
- - - 716,910
1,320,173$ 301,104$ 23,527,931$ 288,777,413$
13,249$ -$ 5 65,864$ 8 ,061,206$
13,249 - 565,864 8,061,206
- - - 76,026,181
- - - 76,026,181
- - 2,380,881 126,485,623
1,306,924 301,104 20,581,186 78,204,403
1,306,924 301,104 22,962,067 204,690,026
1,320,173$ 301,104$ 23,527,931$ 288,777,413$

CAPITAL PROJECTS FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
June 30, 2023 (continued)
178

HUD City Affordable
Gas Tax Programs Housing

REVENUES
Taxes:

Other -$ -$ -$
Licenses, permits, fines, and penalties - - -
Intergovernmental 6,380,165 937,361 15,362
Charges for services - 1,467 72,308
Interest and rents 289,821 3,578 262,053
Other - 352,593 7,307,452 - - -
Total Revenues 6,669,986 1,294,999 7,657,175

EXPENDITURES
Current:

General Administration - 1,517,834 6,895,177
Public Works - - -
Parks and Recreation - - -
Public Safety:

Police - - -
Fire - - -
Planning and Inspection - - -
Library - - -
Capital outlay - - -
Debt service:

Principal payments - - -
Interest and fiscal fees - - - - - -
Total Expenditures - 1,517,834 6,895,177

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 6,669,986 (222,835) 761,998

OTHER FINANCING SOURCES (USES)
Subscription based IT Arragement Liabilities - - -
Transfers in 527,565 - -
Transfers (out) (5,485,000) (24,000) -
Total Other Financing Sources (Uses) (4,957,435) (24,000) - NET CHANGE IN FUND BALANCE 1,712,551 (246,835) 761,998 Fund balances - beginning 2,118,981 1,157,277 16,093,473 Fund balances - ending 3,831,532$ 910,442$ 16,855,471$

SPECIAL REVENUE FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
For the year ended June 30, 2023
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 179

DEBT SERVICE FUND
Santa Clara Operating New Development Public Facilities Housing Authority Maintenance Grants Fund Service Fee Financing Corp. -$ 359,319$ -$ -$ -$
- - - 11,795,557 -
- - 1,061,781 - -
- 1,047,559 75,746 6,926,293 -
66,431 13,904 423 864,346 23,843
339,440 - - 27,935 - - - - - -
405,871 1,420,782 1,137,950 19,614,131 23,843
186,806 - - - -
- 1,717,720 - - -
- 4,748 157,760 - -
- - 272,243 - -
- - 521,747 - -
- - 404,193 14,475,379 -
- - 113,945 - -
- - 309,706 - -
- - - - 980,000
- - - - 423,235 - - - - -
186,806 1,722,468 1,779,594 14,475,379 1,403,235 219,065 (301,686) (641,644) 5,138,752 (1,379,392) - - - - -
- 842,700 319,604 60,000 1,402,275
- (265,252) (372,032) (187,773) -
- 577,448 (52,428) (127,773) 1,402,275
219,065 275,762 (694,072) 5,010,979 22,883
4,228,920 1,635,977 1,952,011 29,261,410 722,541 4,447,985$ 1,911,739$ 1,257,939$ 34,272,389$ 745,424$

SPECIAL REVENUE FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
For the year ended June 30, 2023
180

Parks Streets
and and Storm
Recreation Highways Drain
Facilities Improvement Improvement

REVENUES
Taxes:

Other -$ -$ -$
Licenses, permits, fines, and penalties - - -
Intergovernmental - 3,129,450 -
Charges for services - - 1,447,370
Interest and rents 726,499 313,136 6,506
Other 37,171,022 1,231,625 - - - -
Total Revenues 37,897,521 4,674,211 1,453,876

EXPENDITURES
Current:

General Administration - - -
Public Works - 3,117,731 704,945
Parks and Recreation 2,157,951 - -
Public Safety:

Police - - -
Fire - - -
Planning and Inspection - - -
Library - - -
Capital outlay 9,090,510 14,784,052 1,891,517
Debt service:

Principal payments - - -
Interest and fiscal fees - - - - - -
Total Expenditures 11,248,461 17,901,783 2,596,462

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 26,649,060 (13,227,572) (1,142,586)

OTHER FINANCING SOURCES (USES)
Subscription based IT Arragement Liabilities - - -
Transfers in 527,529 10,468,911 973,623
Transfers (out) - (658,486) (1,493,301)
Total Other Financing Sources (Uses) 527,529 9,810,425 (519,678) NET CHANGE IN FUND BALANCE 27,176,589 (3,417,147) (1,662,264) Fund balances - beginning 28,419,074 58,817,911 6,552,847 Fund balances - ending 55,595,663$ 55,400,764$ 4,890,583$

CAPITAL PROJECTS FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
For the year ended June 30, 2023 (continued)
181

Total
Fire Library Non-Major
Department Department Public Governmental
Improvement Improvement Facilities Funds
-$ -$ -$ 359,319$
- - - 11,795,557
- - 100,000 11,624,119
- - 288,526 9,859,269
- - 82,620 2,653,160
- - 5,871,783 52,301,850 - - -
- - 6,342,929 88,593,274
- - 3,743,206 12,343,023
- - 1,867,455 7,407,851
- - - 2,320,459
- - - 272,243
614,862 - - 1,136,609
- - - 14,879,572
- 8,831 - 122,776
11,859 75,122 2,149,562 28,312,328
- - 104,186 1,084,186
- - 19,670 442,905 - - - -
626,721 83,953 7,884,079 68,321,952
(626,721) (83,953) (1,541,150) 20,271,322
- - 1,776,143 1,776,143
661,766 281,831 6,241,109 22,306,913
(61,054) (57,300) (6,915) (8,611,113)
600,712 224,531 8,010,337 15,471,943
(26,009) 140,578 6,469,187 35,743,265
1,332,933 160,526 16,492,880 168,946,761
1,306,924$ 301,104$ 22,962,067$ 204,690,026$

CAPITAL PROJECTS FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
For the year ended June 30, 2023 (continued)
182

Maintenance
Variance
Actual Amount Positive
Budget Budgetary Basis (Negative)

REVENUES
Taxes-Other 362,748$ 3 59,319$ (3,429)$
Charges for services 1,047,681 654,555 (393,126)
Interest and rents 1,938 13,904 11,966
Total Revenues 1,412,367 1,027,778 (384,589)

EXPENDITURES
Current:

Total Public Works 1,848,940 1,812,821 36,119
Total Parks and Recreation 362,401 37,141 325,260 - Total Expenditures 2,211,341 1,849,962 361,379

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (798,974) (822,184) (23,210)

OTHER FINANCING SOURCES (USES)
Transfers in 842,700 842,700 -
Transfers out (420,728) (265,252) 155,476
Total Other Financing Sources (Uses) 421,972 577,448 155,476

EXCESS (DEFICIENCY) OF REVENUES AND

OTHER SOURCES OVER EXPENDITURES
AND OTHER USES (377,002)$ (244,736) 132,266$
ADJUSTMENTS TO BUDGETARY BASIS:

Expenditures of prior year encumbrances recognized on the GAAP basis (180,782) Current year encumbrances recognized on the budgetary basis 308,276 Net change in receivables recognized on the GAAP basis 393,004 Beginning Fund balance 1,635,977
Ending Fund balance 1,911,739$

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL (NON-GAAP LEGAL BASIS)
For the year ended June 30, 2023

CITY OF SANTA CLARA

SPECIAL REVENUE FUNDS
Special Revenue Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Non-GAAP Legal Basis)
183

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS
Non-Major Enterprise Funds are used to finance and account for operations and activities performed by designated departments in the City or through third party agreements.

SOLID WASTE FUND
This fund accounts for the administration of the City’s garbage and rubbish collection service.

CEMETERY FUND
This fund accounts for the activities of the Mission City Memorial Park.

SANTA CLARA CONVENTION CENTER FUND
The Santa Clara Convention Center Fund was established in 1984 to account for the operations of the City’s Convention Center or through third party agreements.

SPORTS AND OPEN SPACE AUTHORITY FUND (SOSA)
SOSA was created by the City Council in 1974 for the acquisition and development of open space within the City and the development of local sports activities.
184

Solid
Wa
ste Cemetery
ASSETS
Current assets:

Cash and investments:

Pooled cash and investments 7,198,489$ 3,190,512$
Receivables (net of allowance for uncollectible):

Accounts 5,920,942 -
Due from other funds - 305,701
Total current assets 13,119,431 3,496,213
Noncurrent assets:

Restricted cash 1,108,885 -
Capital assets:

Land - 1,096,874
Construction in progress - -
Buildings, infrastructure and land improvements 127,362 1,280,641 Equipment 37,170 17,705
164,532 2,395,220
Less accumulated depreciation 87,624 1,148,436
Net capital assets 76,908 1,246,784
Total noncurrent assets 1,185,793 1,246,784
Total assets 14,305,224 4,742,997

DEFERRED OUTFLOWS OF RESOURCES
OPEB related items 19,124 14,377
Pension related items 991,339 477,211
Total deferred outflows of resources 1,010,463 491,588

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2023
Combining Statement of Net Position
185

Santa Clara Sports and TOTAL
Convention Open Space Non-Major
Center Authority Enterprise Funds
11,778,689$ 501$ 22,168,191$
1,149,299 - 7,070,241
- - 305,701
12,927,988 501 29,544,133
393,952 - 1,502,837
- 1,995,998 3,092,872
708,406 - 708,406
78,803,728 - 80,211,731
2,957,268 - 3,012,143
82,469,402 1,995,998 87,025,152
61,830,179 - 63,066,239
20,639,223 1,995,998 23,958,913
21,033,175 1,995,998 25,461,750
33,961,163 1,996,499 55,005,883
- - 33,501
- - 1,468,550
- - 1,502,051
(continued)

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2023
186

Solid
Waste Cemetery

LIABILITIES
Current liabilities:

Accrued liabilities 2,845,421 1,560
Unearned revenue - -
Accrued compensated absences 2,649 8,237
Current portion of landfill closure liability 765,000 - Total current liabilities 3,613,070 9,797
Noncurrent liabilities:

Long-term compensated absences 27,554 85,698
Landfill closure liability 5,367,036 -
Net OPEB liability 225,985 169,899
Net pension liability 4,945,629 1,965,151
Total noncurrent liabilities 10,566,204 2,220,748
Total liabilities 14,179,274 2,230,545

DEFERRED INFLOWS OF RESOURCES
OPEB related items 21,773 16,369
Pension related items 38,384 15,252
Total deferred inflows of resources 60,157 31,621

NET POSITION
Net investment in capital assets 76,908 1,246,784
Restricted for capital projects and other agreements 1,108,885 2,397,444 Unrestricted (109,537) (671,809)
Total net position (deficit) 1,076,256$ 2,972,419$

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2023
187

Santa Clara Sports and TOTAL
Convention Open Space Non-Major
Center Authority Enterprise Funds
1,217,446 - 4,064,427
6,468,364 - 6,468,364
- - 10,886
- - 765,000
7,685,810 - 11,308,677
- - 113,252
- - 5,367,036
- - 395,884
- - 6,910,780
- - 12,786,952
7,685,810 - 24,095,629
- - 38,142
- - 53,636
- - 91,778
20,639,223 1,995,998 23,958,913
393,952 - 3,900,281
5,242,178 501 4,461,333
26,275,353$ 1,996,499$ 32,320,527$
June 30, 2023

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF NET POSITION
188

Solid
Waste Cemetery
Operating revenues:

Charges for services 35,932,485$ 849,884$
Other - 82,244
Total operating revenues 35,932,485 932,128
Operating expenses:

Salaries and benefits 1,251,870 829,319
Materials, services and supplies 32,867,010 557,227
Depreciation 6,079 6,287
Total operating expenses 34,124,959 1,392,833
Operating income (loss) 1,807,526 (460,705)
Nonoperating revenues (expenses):

Interest revenue - 35,851
Rents and royalties 11,646 -
Total nonoperating revenues (expenses) 11,646 35,851
Income (loss) before
contributions and transfers 1,819,172 (424,854)
Transfers in 35,364 879,225
Transfers (out) (5,121) (822)
Change in net position 1,849,415 453,549
Total net position - beginning (773,159) 2,518,870
Total net position - ending 1,076,256$ 2,972,419$

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
For the year ended June 30, 2023
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 189

Santa Clara Sports and TOTAL
Convention Open Space Non-Major
Center Authority Enterprise Funds
17,429,458$ -$ 54,211,827$
- - 82,244
17,429,458 - 54,294,071
298,598 6,095 2,385,882
14,785,374 4,104 48,213,715
1,556,039 - 1,568,405
16,640,011 10,199 52,168,002
789,447 (10,199) 2,126,069
119,087 38 154,976
- - 11,646
119,087 38 166,622
908,534 (10,161) 2,292,691
- 6,000 920,589
- - (5,943)
908,534 (4,161) 3,207,337
25,366,819 2,000,660 29,113,190
26,275,353$ 1,996,499$ 32,320,527$
For the year ended June 30, 2023

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
190

Solid
Waste Cemetery

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 36,498,797$ 932,136$
Payments to suppliers (33,729,842) (572,991)
Payments to employees for salaries and benefits (1,336,733) (939,882) Rents and royalties received 11,646 -
Net cash provided (used) by operating activities 1,443,868 (580,737)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
(Increase) in due from other funds - (24,747)
Transfers in 35,364 879,225
Transfers (out) (5,121) (822)
Cash Flows from Noncapital Financing Activities 30,243 853,656

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets, net - - Cash Flows from Capital and Related
Financing Activities - -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends - 35,851
Cash Flows from Investing Activities - 35,851
Net increase (decrease) in cash and cash
equivalents 1,474,111 308,770
Cash and cash equivalents at beginning of period 6,833,263 2,881,742 Cash and cash equivalents at end of period 8,307,374$ 3,190,512$ Cash and cash equivalents:

Pooled cash and investments 7,198,489$ 3,190,512$
Restricted cash 1,108,885 -
Total cash and cash equivalents 8,307,374$ 3,190,512$

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2023
Combining Statement of Cash Flows
191

Santa Clara Sports and TOTAL
Convention Open Space Non-Major
Center Authority Enterprise Funds
18,180,187$ -$ 55,611,120$
(15,710,384) (4,104) (50,017,321)
(298,598) (6,095) (2,581,308)
- - 11,646
2,171,205 (10,199) 3,024,137
- - (24,747)
- 6,000 920,589
- - (5,943)
- 6,000 889,899
(123,277) - (123,277)
(123,277) - (123,277)
119,087 38 154,976
119,087 38 154,976
2,167,015 (4,161) 3,945,735
10,005,626 4,662 19,725,293
12,172,641$ 501$ 23,671,028$
11,778,689$ 501$ 22,168,191$
393,952 - 1,502,837
12,172,641$ 501$ 23,671,028$
(continued)

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2023
192

Solid
Waste Cemetery
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating income (loss) 1,807,526$ (460,705)$
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
(Decrease) Increase in due to OPEB system (368,160) (65,245) (Decrease) Increase in due to retirement system 307,385 38,839 Depreciation 6,079 6,287
Change in assets and liabilities:

Receivables, net 566,312 8
Accrued liabilities (862,832) (15,764)
Compensated absences (24,088) (84,157)
Unearned revenue - -
Other receipts 11,646 -
Net cash provided (used) by operating activities 1,443,868$ (580,737)$

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2023
193

Santa Clara Sports and TOTAL
Convention Open Space Non-Major
Center Authority Enterprise Funds
789,447$ (10,199)$ 2,126,069$
- - (433,405)
- - 346,224
1,556,039 - 1,568,405
1,261,314 - 1,827,634
(925,010) - (1,803,606)
- - (108,245)
(510,585) - (510,585)
- - 11,646
2,171,205$ (10,199)$ 3,024,137$
For the year ended June 30, 2023

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF CASH FLOWS
This page intentionally left blank
195

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.

The concept of major funds does not extend to internal service funds because they do not do business with outside parties. For the Statement of Activities, the net revenues or expenses of each internal service fund are eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.

However, internal service funds are still presented separately in the Fund financial statements, including the funds below.

AUTOMOTIVE SERVICES
This fund accounts for the maintenance and replacement of vehicles and equipment used by all City departments. The source of revenue for this fund is rental fees charged to the various departments.

TECHNICAL EQUIPMENT SERVICES
This fund accounts for the maintenance and replacement of communication and computer equipment used by City departments. The source of revenue for this fund is rental fees charged to the various departments.

PUBLIC WORKS CAPITAL PROJECTS MANAGEMENT
This fund accounts for the Public Works staff time and non-personnel costs utilized to manage and work on specific capital improvement programs of the City. The source of revenue for this fund is fees charged to the departments requiring Public Works capital project services.

INFORMATION TECHNOLOGY SERVICES
This fund accounts for citywide cost associated with computer and telephone equipment replacement as well as other services including new or upgraded software, additional licenses for new users, and general information technology services provided to all City departments. The source of revenue for this fund is fees charged to the departments that require information technology services.

SPECIAL LIABILITY INSURANCE CLAIMS
This fund was established to account for the cost of claims and administrative costs for the City’s self-insured general liability program.

WORKERS’ COMPENSATION INSURANCE CLAIMS
This fund is used to account for the cost of claims for service connected with injuries and illnesses sustained by members of the City’s work force.
196

Technical PW Capital
Automotive Equipment Projects
Services Services Management
ASSETS
Current assets:

Cash and investments:

Pooled cash and investments 16,110,921$ 2,287,234$ 1,038,829$ Receivables (net of allowance for
uncollectible):

Accounts 62,741 - -
Due from other funds 37,569 - -
Materials, supplies and prepaids 979,733 - -
Total current assets 17,190,964 2,287,234 1,038,829
Noncurrent assets:

Capital assets:

Equipment 39,510,957 3,379,177 -
Right-to-use leased assets - - -
Right-to-use SBITA - - -
Total capital assets 39,510,957 3,379,177 -
Less accumulated depreciation 28,339,133 3,325,701 -
Net capital assets 11,171,824 53,476 -
Total noncurrent assets 11,171,824 53,476 -
Total assets 28,362,788 2,340,710 1,038,829

DEFERRED OUTFLOWS OF RESOURCES
OPEB related items 42,413 - -
Pension related items 1,395,778 - -
Total deferred outflows of resources 1,438,191 - -

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS

CITY OF SANTA CLARA
June 30, 2023
Combining Statement of Net Position
197

Special Workers'
Information Liability Compensation
Technology Insurance Insurance
Services Claims Claims TOTAL
2,681,176$ 12,001,300$ 9,637,689$ 43,757,149$
- - 450,881 513,622
- - - 37,569
- - - 979,733
2,681,176 12,001,300 10,088,570 45,288,073
6,040 - - 42,896,174
658,444 - - 658,444
2,397,211 - - 2,397,211
3,061,695 - - 45,951,829
925,954 - - 32,590,788
2,135,741 - - 13,361,041
2,135,741 - - 13,361,041
4,816,917 12,001,300 10,088,570 58,649,114
17,253 - - 59,666
838,162 - - 2,233,940
855,415 - - 2,293,606
(continued)
June 30, 2023

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
198

Technical PW Capital
Automotive Equipment Projects
Services Services Management

LIABILITIES
Current liabilities:

Accrued liabilities 422,127 - 42,328
Interest payable - - -
Due to other funds 4,765,784 1,030,886 -
Accrued compensated absences 26,177 - -
Current portion of lease obligation - - -
Current portion of SBITA - - -
Total current liabilities 5,214,088 1,030,886 42,328 Noncurrent liabilities:

Long-term portion estimated claims - - -
Long-term compensated absences 272,337 - -
Long-term lease obligation - - -
Long-term SBITA - - -
OPEB pension liability 501,200 - -
Net pension liability 6,157,465 - -
Total noncurrent liabilities 6,931,002 - -
Total liabilities 12,145,090 1,030,886 42,328

DEFERRED INFLOWS OF RESOURCES
OPEB related items 48,290 - -
Pension related items 47,789 - -
Total deferred inflows of resources 96,079 - -

NET POSITION
Net investment in capital assets 11,171,824 53,476 -
Unrestricted 6,387,986 1,256,348 996,501
Total net position (deficit) 17,559,810$ 1,309,824$ 996,501$

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2023
199

Special Workers'
Information Liability Compensation
Technology Insurance Insurance
Services Claims Claims TOTAL
796,305 2,413,151 4,133,532 7,807,443
10,808 - - 10,808
- - - 5,796,670
33,574 - - 59,751
208,162 - - 208,162
588,336 - - 588,336
1,637,185 2,413,151 4,133,532 14,471,170
- 5,415,000 16,300,000 21,715,000
349,289 - - 621,626
34,720 - - 34,720
1,220,012 - - 1,220,012
203,880 - - 705,080
2,816,714 - - 8,974,179
4,624,615 5,415,000 16,300,000 33,270,617
6,261,800 7,828,151 20,433,532 47,741,787
19,643 - - 67,933
21,861 - - 69,650
41,504 - - 137,583
84,511 - - 11,309,811
(715,483) 4,173,149 (10,344,962) 1,753,539
(630,972)$ 4,173,149$ (10,344,962)$ 13,063,350$

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2023
200

Technical PW Capital
Automotive Equipment Projects
Services Services Management
Operating revenues:

Charges for services 7,777,112$ 702,589$ 3,962,226$
Insurance refunds and other - - -
Total operating revenues 7,777,112 702,589 3,962,226 Operating expenses:

Salaries and benefits 2,399,220 - 2,912,453
Materials, services and supplies 3,128,935 320,897 680,533 General and administrative - - -
Amortization - Right to use assets - - -
Depreciation 2,402,803 108,903 -
Total operating expenses 7,930,958 429,800 3,592,986 Operating income (loss) (153,846) 272,789 369,240
Nonoperating revenues (expenses):

Other revenue 474,890 - -
Interest expense - - -
Gain (loss) on retirement of assets (39,274) - -
Total nonoperating revenues (expenses) 435,616 - -
Income (loss) before
contributions and transfers 281,770 272,789 369,240 Transfers in 3,275,783 - -
Transfers (out) (960,000) - (83,232)
Change in net position 2,597,553 272,789 286,008
Total net position - beginning 14,962,257 1,037,035 710,493 Total net position - ending 17,559,810$ 1,309,824$ 996,501$

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
For the year ended June 30, 2023
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 201

Special Workers'
Information Liability Compensation
Technology Insurance Insurance
Services Claims Claims TOTAL
12,259,628$ 9,460,774$ 5,812,139$ 39,974,468$
- 19,275 66,153 85,428 -
12,259,628 9,480,049 5,878,292 40,059,896
1,827,597 - - 7,139,270
9,648,713 - - 13,779,078
- 4,525,646 4,667,822 9,193,468
713,293 - - 713,293
1,208 - - 2,512,914 -
12,190,811 4,525,646 4,667,822 33,338,023
68,817 4,954,403 1,210,470 6,721,873
- - - 474,890
(54,687) - - (54,687)
- - - (39,274) -
(54,687) - - 380,929
14,130 4,954,403 1,210,470 7,102,802
- - - 3,275,783
- - - (1,043,232)
14,130 4,954,403 1,210,470 9,335,353
(645,102) (781,254) (11,555,432) 3,727,997
(630,972)$ 4,173,149$ (10,344,962)$ 13,063,350$

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
For the year ended June 30, 2023
202

Technical PW Capital
Automotive Equipment Projects
Services Services Management

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 7,721,505$ 702,589$ 3,962,226$ Payments to suppliers (3,522,031) (320,897) (700,243) Payments to employees for salaries and benefits (2,372,610) - (2,912,453) Internal activity - payments to other funds (254,717) - - Claims paid - - -
Other receipts 474,890 - -
Net cash provided (used) by operating activities 2,047,037 381,692 349,530

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
(Increase) in due from other funds (2,589) - -
Increase in due to other funds 1,447,907 126,769 - Transfers in 3,275,783 - -
Transfers (out) (960,000) - (83,232)
Cash Flows from Noncapital Financing Activities 3,761,101 126,769 (83,232)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets, net (1,719,206) - - Principal payment on capital debt - - -
Interest paid on capital debt - - -
Cash Flows from Capital and Related
Financing Activities (1,719,206) - -
Net increase (decrease) in cash and cash
equivalents 4,088,932 508,461 266,298
Cash and investments at beginning of period 12,021,989 1,778,773 772,531 Cash and investments at end of period 16,110,921$ 2,287,234$ 1,038,829$ Cash and cash equivalents:

Pooled cash and investments 16,110,921$ 2,287,234$ 1,038,829$ Total cash and cash equivalents 16,110,921$ 2,287,234$ 1,038,829$

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2023
Combining Statement of Cash Flows
203

Special Workers'
Information Liability Compensation
Technology Insurance Insurance
Services Claims Claims TOTAL
12,270,372$ 9,460,774$ 5,782,277$ 39,899,743$
(10,538,212) - - (15,081,383)
(2,044,310) - - (7,329,373)
(69,473) - - (324,190)
- (7,026,243) (5,197,170) (12,223,413)
- 414 - 475,304
(381,623) 2,434,945 585,107 5,416,688
- - - (2,589)
- - - 1,574,676
- - - 3,275,783
- - - (1,043,232)
- - - 3,804,638
- - - (1,719,206)
(785,978) - - (785,978)
(54,687) - - (54,687)
(840,665) - - (2,559,871)
(1,222,288) 2,434,945 585,107 6,661,455 -
3,903,464 9,566,355 9,052,582 37,095,694
2,681,176$ 12,001,300$ 9,637,689$ 43,757,149$
2,681,176$ 12,001,300$ 9,637,689$ 43,757,149$
2,681,176$ 12,001,300$ 9,637,689$ 43,757,149$
(continued)

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2023
204

Technical PW Capital
Automotive Equipment Projects
Services Services Management
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating income (loss) (153,846)$ 272,789$ 369,240$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:
(Decrease) Increase in lease and SBITA obligation - - - (Decrease) Increase in due to OPEB system (235,947) - - (Decrease) Increase in due to retirement system 221,176 - - Depreciation 2,402,803 108,903 -
Change in assets and liabilities:

Receivables, net (55,607) - -
Inventory (720,321) - -
Accrued liabilities 72,508 - (19,710)
Long-term portion estimated claims - - -
Compensated absences 41,381 - -
Other receipts - - -
Other expenses 474,890 - -
Net cash provided (used) by operating activities 2,047,037$ 381,692$ 349,530$

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2023
205

Special Workers'
Information Liability Compensation
Technology Insurance Insurance
Services Claims Claims TOTAL
68,817$ 4,954,403$ 1,210,470$ 6,721,873$
713,291 - - 713,291
(133,624) - - (369,571)
(98,492) - - 122,684
1,208 - - 2,512,914
10,744 4,274 (29,862) (70,451)
- - 25,938 (694,383)
(958,970) (1,054,146) 112,561 (1,847,757)
- (1,470,000) (734,000) (2,204,000)
15,403 - - 56,784
- 414 - 414
- - - 474,890
(381,623)$ 2,434,945$ 585,107$ 5,416,688$

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2023
Thi
s page intentionally left blank
207

CIT

Y OF SANTA CLARA

COMBINING FIDUCIARY FUNDS

PRIVATE PURPOSE TRUST FUNDS
Private Purpose Trust Funds are used to report trust arrangements, other than pension and investment trusts, under which principal and income benefit individuals, private organizations, or other governments. The Private Purpose Trust Funds are described below:

CHARITABLE TRUST
This fund accounts for the various gifts, donations and bequests received by the City for distribution to various nonprofit organizations as determined by the Mission City Community Fund.

SUCCESSOR AGENCY
California State laws ABx1 26 and AB 1484 provided for the dissolution of California Redevelopment Agencies effective January 31, 2012 and the transfer of all non-housing Agency assets to the Successor Agency Redevelopment Obligation Retirement Fund.

CUSTODIAL FUNDS
Custodial Funds are presented separately from the Government-wide and Fund financial statements.

Custodial Funds account for assets held by the City as an agent for individuals, governmental entities, and non- public organizations. These funds include the following:

EMPLOYEE CONTRIBUTED EMERGENCY PAID LEAVE POOL FUND
This fund is used to account for monies collected and disbursed for the employees paid leave program that is administered by respective bargaining units. The City does not make contribution to this fund.

SPECIAL ASSESSMENTS
This fund accounts for monies collected and disbursed from special assessment districts where the City is not obligated for the outstanding debt payments.

CUSTODIAL DEPOSITS
This fund accounts for various miscellaneous deposits for other entities. 208

Total
Charitable Successor Private Purpose
Trust Agency Trust
ASSETS
Current assets
Cash and investments:

Pooled cash and investments 676,461$ 643,804$ 1,320,265$ Receivables (net of allowance for uncollectibles):

Interest and rent 17,182 223,150 240,332
Leases receivable - 874,098 874,098
Total current assets 693,643 1,741,052 2,434,695
Noncurrent assets
Leases receivable- noncurrent - 42,824,370 42,824,370 Investment with fiscal agent-noncurrent 2,895,085 - 2,895,085 Land held for resale - 532,542 532,542
Total noncurrent assets 2,895,085 43,356,912 46,251,997 - Total Assets 3,588,728 45,097,964 48,686,692

LIABILITIES
Unearned revenues - 110,917 110,917
Due to other agencies - 640,000 640,000
Total Liabilities - 750,917 750,917

DEFERRED INFLOWS OF RESOURCES
Leases related - 42,005,237 42,005,237
Total deferred inflows of resources - 42,005,237 42,005,237

NET POSITION
Held in trust for private purpose 3,588,728 - 3,588,728 - 2,341,810 2,341,810 -
Total Net Position 3,588,728$ 2,341,810$ 5,930,538$

CITY OF SANTA CLARA

PRIVATE PURPOSE TRUST FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2023
Restricted for individuals, organization
and other governments
Private Purpose Trust Funds
Combining Statement of Net Position
209

Total
Charitable Successor Private Purpose
Trust Agency Trust

ADDITIONS
Investment income:

Net change in fair value of investments 39,749$ -$ 39,749$ Interest and rents 125,893 3,499,666 3,625,559
Net investment income 165,642 3,499,666 3,665,308
Other - - -
Total additions 165,642 3,499,666 3,665,308

DEDUCTIONS
General and administrative 85,180 851 86,031
Pass through to the County of Santa Clara - 2,620,000 2,620,000 Total deductions 85,180 2,620,851 2,706,031
80,462 878,815 959,277
Net position - beginning 3,508,266 1,462,995 4,971,261 Net position - ending 3,588,728$ 2,341,810$ 5,930,538$

CITY OF SANTA CLARA

PRIVATE PURPOSE TRUST FUNDS

COMBINING STATEMENT OF CHANGES IN NET POSITION
For the Year Ended June 30, 2023
Net increase (decrease) in fiduciary net position
Combining Statement of Changes in Net Position
210

Employee Contributed Total
Emergency Paid Special Custodial Custodial
Leave Pool Assessments Deposits Funds
ASSETS
Cash and investments:

Pooled cash and investments 402,308$ 409,793 $ 21,935 $ 834,036$ Total cash 402,308 409,793 21,935 834,036
Total Assets 402,308 409,793 21,935 834,036

NET POSITION
402,308 409,793 21,935 834,036 -
Total Net Position 402,308$ 409,793 $ 21,935 $ 834,036$

CITY OF SANTA CLARA

CUSTODIAL FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2023
Restricted for individuals, organization
and other governments
Custodial Funds
Combining Statement of Net Position
211

Employee Contributed Total
Emergency Paid Special Custodial Custodial
Leave Pool Assessments Deposits Funds

ADDITIONS
Contributions:

Employee contributions 26,572$ -$ - $ 26,572$
Other plans - 2,631,584 - 2,631,584
Gifts and bequest - - 930 930
Total contributions 26,572 2,631,584 930 2,659,086 Investment income:

Interest and rents 4,869 - - 4,869
Net investment income 4,869 - - 4,869
Total additions 31,441 2,631,584 930 2,663,955

DEDUCTIONS
General and administrative - 80,000 2,514 82,514
Benefits paid 51,403 - - 51,403
Pass through to the Stadium Authority - 2,489,168 - 2,489,168 Total deductions 51,403 2,569,168 2,514 2,623,085 (19,962) 62,416 (1,584) 40,870
Net position - beginning 422,270 347,377 23,519 793,166 Net position - ending 402,308$ 409,793$ 21,935 $ 834,036$

CITY OF SANTA CLARA

CUSTODIAL FUNDS

COMBINING STATEMENT OF CHANGES IN NET POSITION
For the Year Ended June 30, 2023
Net increase (decrease) in fiduciary net position
Combining Statement of Changes in Net Position
Thi
s page intentionally left blank
Sta
tistical Section (Unaudited)
Thi
s page intentionally left blank
215

CITY OF SANTA CLARA

STATISTICAL SECTION
This part of the City of Santa Clara’s Annual Comprehensive Report provides detailed information to better understand the data presented within the financial statements, note disclosures, and required supplementary information.

TABLES
FINANCIAL TRENDS 1 - 4
Contains trend information to help the reader understand how the City’s financial performance has changed over time.

REVENUE CAPACITY 5 - 10
Contains information to help the reader assess the City’s most significant local revenue source, the property tax.

DEBT CAPACITY 11 - 15
Presents information to assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

DEMOGRAPHIC AND ECONOMIC INFORMATION 16 - 17
Offers information to help the reader understand the environment within which the City’s financial activities take place.

OPERATING INFORMATION 18 - 21
Contains service and infrastructure data to help the reader understand how the City’s financial report relates to the services the City provides and the activities it performs.

City of Santa Clara
216

CITY OF SANTA CLARA

NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(In Thousands)
Table 1
2023 2022 2021 2020 2019 2018 2017 2016 2015
(1)
2014
Governmental Activities:

Net Investment in Capital Assets 632,383$ 625,872$ 626,115$ 613,187$ 585,201$ 553,135$ 532,255$ 507,390$ 524,645$ 528,043$ Restricted 342,466 317,290 275,653 260,872 244,775 246,048 242,393 207,996 198,316 189,618 Unrestricted (286,878) (283,492) (289,637) (224,176) (169,513) (180,368) (135,818) (125,913) (186,423) 102,421 687,971$ 659,670$ 612,131$ 649,883$ 660,463$ 618,815$ 638,830$ 589,473$ 536,538$ 820,082$ Business - Type Activities:

Net Investment in Capital Assets 1,088,899$ 1,079,607$ 1,042,058$ 974,612$ 953,098$ 917,738$ 882,187$ 844,911$ 760,150$ 496,107$ Restricted 332,074 333,069 234,289 249,516 185,267 174,595 142,459 133,718 93,891 96,318 Unrestricted 218,381 112,922 100,116 80,997 31,258 (24,141) (13,132) (61,843) (1,573) 325,633 1,639,354$ 1,525,598$ 1,376,463$ 1,305,125$ 1,169,623$ 1,068,192$ 1,011,514$ 916,786$ 852,468$ 918,058$ Primary Government
Net Investment in Capital Assets 1,721,282$ 1,705,479$ 1,668,173$ 1,587,799$ 1,538,299$ 1,470,873$ 1,414,442$ 1,352,301$ 1,284,795$ 1,024,150$ Restricted 674,540 650,359 509,942 510,388 430,042 420,643 384,852 341,714 292,207 285,936 Unrestricted (68,497) (170,570) (189,521) (143,179) (138,255) (204,509) (148,950) (187,756) (187,996) 428,054 2,327,325$ 2,185,268$ 1,988,594$ 1,955,008$ 1,830,086$ 1,687,007$ 1,650,344$ 1,506,259$ 1,389,006$ 1,738,140$ Note:
(1) Certain amounts cannot be compared to fiscal year 2015 due to the implementation of GASB Staetment No. 68.

Source: Finance Office, City of Santa Clara.

Total Governmental Activities
Net Assets:

Total Business - Type Activities
Net Position
Total Primary Government
Net Position

1. Net Position by Component – Last Ten Fiscal Years
217

2. Changes in Net Position – Last Ten Fiscal Years
Table 2
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Expenses:

Governmental Activities:

General Administration 32,353$ 37,676$ 33,671$ 26,436$ 30,328$ 25,467$ 20,636$ 22,692$ 18,310$ 15,208$ City Clerk 1,329 1,171 1,414 1,292 1,263 864 1,020 309 389 263 City Attorney 2,529 2,079 1,890 1,945 1,700 1,000 860 270 194 102 Human Resources 2,039 2,136 1,616 2,751 2,011 1,886 1,675 748 654 502 Finance 10,031 10,325 10,188 10,497 7,111 6,253 5,323 1,633 1,357 844 Public Works 44,839 38,837 41,951 46,176 45,725 38,276 34,314 30,365 29,713 30,287 Parks and Recreation 25,907 20,520 20,266 27,491 23,285 21,369 18,616 17,106 16,135 15,913 Public Safety:

Police 88,389 71,575 87,563 89,477 72,449 76,742 63,612 58,599 54,252 47,105 Fire 73,154 58,117 71,025 67,767 58,120 55,372 43,384 37,120 35,341 34,099 Planning and Inspection 19,218 15,487 15,537 16,281 12,879 10,614 9,162 7,855 7,593 6,848 Library 12,766 10,925 10,864 13,773 12,687 12,302 10,553 10,718 8,851 8,161 Interest on long term debt 349 408 487 560 630 695 749 803 853 1,125 Total Governmental Activities Expenses (Net) 312,903 269,256 296,472 304,446 268,188 250,840 209,904 188,218 173,642 160,457 Business-Type Activities:

Utilities:

Electric 658,600 552,552 454,503 453,112 408,812 437,419 402,977 386,239 377,017 362,303 Water 49,010 45,578 45,353 43,196 46,067 41,777 35,649 32,254 29,482 28,181 Sewer 86,208 30,523 30,103 28,614 29,462 25,689 23,047 19,081 17,981 17,237 Water Recycling 6,605 5,700 5,844 6,344 5,909 4,972 4,858 2,672 2,902 2,030 Solid Waste 34,196 32,997 29,769 25,567 25,393 23,363 26,621 20,142 19,717 18,486 Cemetery 1,395 1,350 1,359 1,659 1,257 1,174 820 781 676 901 Sports and Open Space Authority 10 9 8 10 9 10 53 102 97 95 Santa Clara Golf and Tennis Club - - - 1,675 2,837 2,951 2,772 2,777 2,754 2,827 Santa Clara Convention Center 16,530 11,829 4,667 16,738 12,967 8,423 8,478 9,075 9,006 8,926 Santa Clara Stadium Authority 61,818 65,308 41,181 79,539 103,899 111,210 105,593 147,435 98,363 21,913 Total Business-Type Activities Expenses 914,372 745,846 612,787 656,454 636,612 656,988 610,868 620,558 557,995 462,899 Total Primary Expenses 1,227,275$ 1,015,102$ 909,259$ 960,900$ 904,800$ 907,828$ 820,772$ 808,776$ 731,637$ 623,356$ Source: Finance Office, City of Santa Clara

CITY OF SANTA CLARA

CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(In Thousands)
218
Table 2
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Program Revenues:

Governmental Activities:

Charges for Services:

General Administration 14,252$ 9,592$ 3,475$ 8,837$ 7,904$ 398$ 1,651$ 1,247$ 416$ 355$ Parks and Recreation 3,225 2,049 891 1,495 3,431 3,126 3,169 3,114 4,207 3,157 Planning and Inspection 21,755 21,274 16,470 15,564 19,048 12,837 13,658 15,065 13,944 9,299 Other Programs 17,368 15,282 12,604 15,057 17,476 21,303 19,658 23,022 16,281 12,296 Operating Grants and Contributions 6,651 34,060 17,053 9,455 8,457 7,172 4,723 5,809 8,240 6,566 Capital Gains and Contributions 8,534 6,072 11,598 29,619 23,634 20,273 14,280 12,100 5,848 10,347 Total Governmental Activities Program Revenues 71,785 88,329 62,091 80,027 79,950 65,109 57,139 60,357 48,936 42,020 Business-Type Activities:

Utilities:

Electric 751,409 611,549 526,710 507,494 460,263 475,434 459,849 412,441 381,858 364,280 Equity in income (losses) of joint ventures
(1)
- - - - - - - - (4,719) 4,214
Water 50,519 51,606 52,530 51,373 47,017 46,685 39,953 31,955 31,462 30,979 Sewer 57,998 116,443 16,587 71,041 44,763 50,942 43,176 41,659 43,400 34,585 Equity in income (losses) of joint ventures
(1)
- - - - - - - - (10,036) (3,383)
Water Recycling 6,395 6,072 6,182 6,304 6,299 5,479 4,834 3,841 3,381 3,136 Solid Waste 35,944 34,851 26,603 26,645 25,983 23,544 22,585 21,854 20,404 20,154 Cemetery 932 1,024 844 585 634 666 799 693 649 528 Sports and Open Space Authority - - - - - - 58 72 66 82 Santa Clara Golf and Tennis Club - - - 674 2,001 1,991 1,780 1,666 2,207 2,857 Santa Clara Convention Center 17,429 8,527 1,221 14,252 12,734 9,061 9,581 7,399 7,112 7,240 Santa Clara Stadium Authority 74,438 59,528 38,682 87,976 112,550 112,039 110,059 146,619 102,908 33,193 Total Business-Type Activities Program Revenues 995,064 889,600 669,359 766,344 712,244 725,841 692,674 668,199 578,692 497,865 Total Primary Government Program Revenues 1,066,849 977,929 731,450 846,371 792,194 790,950 749,813 728,556 627,628 539,885 Net (Expense) Revenues:

Governmental Activities (241,118) (180,927) (234,381) (224,419) (188,238) (185,731) (152,765) (127,861) (124,706) (118,437) Business-Type Activities 80,692 143,754 56,572 109,890 75,632 68,853 81,806 47,641 20,697 34,966 Total Primary Government Net (Expense) Revenues (160,426)$ (37,173)$ (177,809)$ (114,529)$ (112,606)$ (116,878)$ (70,959)$ (80,220)$ (104,009)$ (83,471)$ Note:
(1) Equity in income (losses) of joint ventures were included in the Electric and Sewer Business-Type Activities beginning in fiscal year 2016 Source: Finance Office, City of Santa Clara
(In Thousands)
(continued)

CITY OF SANTA CLARA

CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
219

CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Table 2
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
General Revenue and other changes in Net Position
Governmental Activities:

Taxes:

Sales 64,498$ 56,902$ 56,178$ 55,270$ 65,036$ 56,320$ 55,751$ 57,797$ 49,648$ 46,736$ Ad Valorem Property 84,047 74,188 68,358 65,132 58,502 54,965 50,943 45,627 37,574 39,187 Transient occupancy 18,989 10,812 2,949 15,994 23,229 20,580 20,484 20,557 18,186 15,141 Other 6,738 7,317 6,019 5,967 5,955 6,392 5,671 5,510 5,173 5,191 Internal Governmental, unrestricted:

Motor Vehicle in-lieu - - - - - - 55 49 50 - Contribution in-lieu of taxes 29,584 27,259 24,548 22,710 21,304 21,986 21,117 19,057 17,493 16,591 Investment earnings 13,299 5,709 6,451 8,700 6,990 4,600 3,466 2,178 1,702 3,380 Net increase (decrease) in the fair value of investments (5,788) (13,688) (5,207) 6,531 8,082 (2,452) (3,217) 1,049 496 1,815 Equity in income (losses) of joint ventures - - - 95 28 25 49 44 (40) (106) Rents and royalties 10,030 7,205 9,852 9,032 9,762 10,494 11,410 13,642 11,189 3,781 Other 43,058 58,511 24,590 22,513 30,257 16,243 39,956 8,551 12,154 4,317 Special item - - - - - - - (24,451) (9,224) (80,152) Total Government General Revenue and Special Item 264,455 234,215 193,738 211,944 229,145 189,153 205,685 149,610 144,401 55,881 Business-Type Activities:
(2)
Investment earnings 28,656 11,587 13,569 16,709 16,618 15,755 13,031 16,894 15,602 2,863 Net increase (decrease) in the fair value of investments (3,863) (26,594) (6,246) 10,798 9,921 (3,584) (3,672) 1,218 544 2,356 Equity in gains of joint venture 8,533 14,639 - - - - - - - - Gain (loss) on retirement of assets - - 1,678 - - - - 29,751 64 - Total Business-Type General Revenue 33,326 (368) 9,001 27,507 26,539 12,171 9,359 47,863 16,210 5,219 Total Primary Government General Revenue 297,781 233,847 202,739 239,451 255,684 201,324 215,044 197,473 160,611 61,100 Change in Net Position - Total Primary Government 137,355 196,674 24,930 124,922 143,078 84,446 144,085 117,253 56,602 (22,371) Net Position - Beginning of Year (2015 Adjusted) 2,185,268 1,988,594 1,955,007 1,830,085 1,687,007 1,650,344 1,506,259 1,389,006 1,738,140 1,760,511 GASB68 Implementation - - - - - - - - (405,736) - GASB75 Implementation - - - - - (47,783) - - - - GASB84 Implementation - - 8,657 - - - - - - - GASB87 Implementation 4,702 - - - - - - - - - Net Position - End of Year - Total Primary Government 2,327,325$ 2,185,268$ 1,988,594$ 1,955,007$ 1,830,085$ 1,687,007$ 1,650,344$ 1,506,259$ 1,389,006$ 1,738,140$ (continued)
(In Thousands)

CITY OF SANTA CLARA
220
Table 3
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
General Fund:

Nonspendable 3,396$ 7,244$ 13,767$ 24,260$ 24,421$ 25,002$ 13,837$ 13,517$ 13,247$ 12,850 $ Restricted 24,689 23,291 25,943 28,507 17,652 13,585 7,083 11,865 9,546 9,641 Committed 18,575 23,985 40,280 36,978 30,902 41,914 58,580 64,111 55,121 78,125 Assigned 13,863 9,844 7,131 5,861 7,879 7,473 4,639 4,875 6,761 4,752 Unassigned 92,793 76,751 90,681 122,969 147,739 107,801 107,404 103,430 58,946 23,910 Total General Fund 153,316 141,115 177,802 218,575 228,593 195,775 191,543 197,798 143,621 129,278 All other Governmental Funds:

Restricted 137,384 110,448 88,486 89,256 86,802 91,290 89,818 67,612 76,848 60,489 Committed 78,205 73,821 50,558 44,757 45,345 40,473 44,936 38,953 20,237 25,697 Total All Other Governmental Funds 215,589 184,269 139,044 134,013 132,147 131,763 134,754 106,565 97,085 86,186 Total Governmental Funds 368,905$ 325,384$ 316,846$ 352,588$ 360,740$ 327,538$ 326,297$ 304,363$ 240,706$ 215,464 $

CITY OF SANTA CLARA

FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(In Thousands)

3. Fund Balances – Governmental Funds – Last Ten Fiscal Years 221
Table 4
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
REVENUES:

Taxes:

Sales 64,498$ 56,902$ 56,178$ 55,270$ 65,036$ 56,321$ 55,750$ 57,796$ 49,649$ 46,736$ Ad valorem property 84,599 74,630 68,773 65,498 58,502 54,965 50,943 45,627 37,574 39,187 Transient occupancy 18,989 10,812 2,949 15,994 23,229 20,580 20,484 20,557 18,186 15,141 Other 6,738 7,317 5,824 5,967 5,955 6,392 5,671 5,510 5,173 5,191 Licenses, permits, fees and penalties 18,390 16,182 12,568 11,476 16,478 8,665 10,536 11,530 9,508 6,860 Intergovernmental 13,299 39,929 22,589 19,905 29,685 13,920 15,269 8,570 13,766 10,611 Charges for services 51,976 47,194 38,171 44,029 49,067 45,237 42,941 46,938 39,012 32,749 Contribution in-lieu of taxes 29,584 27,259 24,548 22,710 21,304 21,986 21,117 19,057 17,493 16,591 Interest and rents 26,065 13,220 16,161 17,673 16,927 15,223 14,636 15,617 10,692 7,672 Net increase (decrease) in the fair value of investments (5,788) (13,688) (5,207) 6,531 8,082 (2,452) (3,217) 1,049 496 1,815 Other 56,381 42,033 17,161 17,955 15,021 11,957 32,209 9,578 13,792 6,740 TOTAL REVENUES 364,731$ 321,790 $ 259,715$ 283,008$ 309,286$ 252,794$ 266,339$ 241,829$ 215,341$ 189,293$ Source: Finance Office, City of Santa Clara.

CITY OF SANTA CLARA
(In Thousands)
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)

CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS

4. Changes in Fund Balances – Governmental Funds – Last Ten Fiscal Years 222
Table 4
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014

EXPENDITURES
Current:

General Administration 36,303$ 42,252 $ 37,273$ 28,927$ 36,093$ 28,997$ 24,265$ 23,743$ 18,684$ 17,101$ City Clerk 1,793 1,618 1,697 1,429 1,440 1,361 1,594 1,007 1,060 863 City Attorney 3,062 2,681 2,330 2,154 2,006 1,690 1,658 1,500 1,329 1,335 Human Resources 3,698 3,837 3,201 3,876 3,151 3,175 2,993 2,616 2,322 2,279 Finance 18,111 16,576 15,852 14,924 11,697 10,484 9,725 9,319 8,455 8,231 Public Works 30,175 28,158 28,443 28,186 31,595 25,595 24,018 20,088 18,424 17,562 Parks and Recreation 22,511 19,890 17,822 22,551 20,026 18,882 17,364 16,162 14,506 14,428 Public Safety:

Police 81,136 77,590 74,918 74,168 62,799 67,841 62,290 61,015 54,344 45,584 Fire 68,137 62,203 59,799 56,421 50,975 49,043 42,550 39,129 35,144 33,267 Planning and Inspection 19,106 16,174 14,712 13,534 11,521 9,896 9,156 8,231 7,620 6,938 Library 10,732 10,011 8,879 10,392 10,234 10,426 9,113 9,479 7,611 7,206 Capital Outlay 34,798 19,261 30,514 24,021 30,382 19,933 29,329 13,434 10,730 8,736 Debt Service:

Principal payments 2,077 2,009 1,930 1,859 1,786 1,731 1,674 1,620 1,576 8,520 Interest and fiscal fees 504 498 572 644 712 767 825 879 925 1,174 Bond issuance cost - - - - - 7 2 1 2 5
TOTAL EXPENDITURES 332,143 302,758 297,942 283,086 274,417 249,828 236,556 208,223 182,732 173,229

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 32,588 19,032 (38,227) (78) 34,869 2,966 29,783 33,606 32,609 16,064 OTHER FINANCING SOURCES (USES):

SBITA liabilities issued 8,202 - - - - - - - - - Lease liabilities issued - 18 - - - - - - - - Transfers in 27,001 56,105 49,402 29,003 43,334 21,381 44,983 58,473 14,152 27,961 Transfers out (24,270) (66,617) (55,575) (37,076) (45,001) (23,106) (52,832) (27,581) (12,295) (25,918) TOTAL OTHER FINANCING SOURCES (USES) 10,933 (10,494) (6,173) (8,073) (1,667) (1,725) (7,849) 30,892 1,857 2,043

NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEM 43,521$ 8,538$ (44,400)$ (8,151)$ 33,202$ 1,241$ 21,934$ 64,498$ 34,466$ 18,107$

SPECIAL ITEM-ASSET TRANSFERRED
TO LIABILITIES ASSUMED BY SUCCESSOR AGENCY - - - - - - - (842) (9,224) (80,152)

NET CHANGE IN FUND BALANCES AFTER
SPECIAL ITEM 43,521$ 8,538$ (44,400)$ (8,151)$ 33,202$ 1,241$ 21,934$ 63,656$ 25,242$ (62,045)$ DEBT SERVICE AS A PERCENTAGE OF 2,581 2,
507 2,502 2,503 2,498 2,505 2,501 2,500 2,503 9,699 NON-CAPITAL EXPENDITURES 1% 1% 1 % 1% 1% 1% 1% 1% 1% 6% Source: Finance Office, City of Santa Clara.
(continued)

CITY OF SANTA CLARA
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(In Thousands)

CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
223
Table 5
Ratio of Net
Fiscal Year Net Local State Net Net Total Assessed Valuation % Growth Total Direct Ending Secured Assessed Unsecured Assessed Assessed To Total Assessed of Assessed Tax June 30 Roll (1) Valuation Roll Valuation Valuation Valuation Valuation Rate 20 13 / 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 52,170,000 52,264,729 99.82% 4.30% 1.19% 2022 / 23 48,144,003 870 8,668,804 56,833,678 56,926,788 99.84% 8.94% 1.17% 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)

5. Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 224

CITY OF SANTA CLARA

PROPERTY TAX RATES
(Per $100 Assessed Valuation)
Direct and Overlapping Governments
Last Ten Fiscal Years
Table 6
Fiscal Santa
Year Ending Clara School Special
June 30 County Districts Districts Total
2013 / 14 1.0388% 0.0962% 0.0070% 1.1420%
2014 / 15 1.0388% 0.0824% 0.0065% 1.1277%
2015 / 16 1.0388% 0.1174% 0.0057% 1.1619%
2016 / 17 1.0388% 0.1014% 0.0086% 1.1488%
2017 / 18 1.0388% 0.1028% 0.0062% 1.1478%
2018 / 19 1.0388% 0.0905% 0.0042% 1.1335%
2019 / 20 1.0388% 0.1472% 0.0041% 1.1901%
2020 / 21 1.0388% 0.1356% 0.0037% 1.1781%
2021 / 22 1.0388% 0.1318% 0.0051% 1.1757%
2022 / 23 1.0388% 0.1150% 0.0044% 1.1582%
Tax rate limit: A state constitutional amendment (Proposition 13) commencing with fiscal 1979 provided that the tax rate was limited to 1% of full cash value, levied only by the County and shared with all other jurisdictions. All jurisdictions may levy a tax rate for voter approved debt.

Due date for current taxes: First installment - November 1; second installment - February 1.

Penalties for delinquency: 10% and 1.5% of tax per month after date taxes become delinquent.

Collected by government unit: County of Santa Clara.

Basis upon which collections are distributed: Taxing jurisdictions assessed valuations and tax rates for voter approved debt to taxing jurisdictions, County rate (1% of full cash value) shared by all jurisdictions.

Compensation paid to collecting government unit for fiscal year 2022-23 is $552,563 Note: Tax rates stated are the rates applicable to the tax rate area 7-000 as typical tax rate area within the City. Rates are based on $100 assessed valuation.

Source: County of Santa Clara, Department of Finance

6. Property Tax Rates Direct and Overlapping Governments – Last Ten Fiscal Years 225
Table 7
Percentage of Percentage of
Assessed Total Assessed Assessed Total Assessed
Taxpayers Valuation Valuation Valuation Valuation
Intel Corporation 2,193,816$ 3.85% 1,251,884$ 4.63%
Santa Clara Square Office 2B LLC 1,831,503 3.22% - - Nvidia Corporation (formerly Nvidia Land Development LLC) 1,544,984 2.71% 354,965 1.31% Microsoft Corporation 1,201,470 2.11% - -
SI LLC 890,736 1.56% 656,066 2.43%
Vantage Data Centers LLC 867,314 1.52% - -
Forty Niners SC Stadium Company LLC 777,020 1.36% - - Santa Clara Phase III EFH LLC 712,919 1.25% - -
Apple Inc 689,186 1.21% - -
Coresite Real Estate 539,535 0.95% - -
Xeres Venture LLC - - 208,597 0.77%
Agilent Technologies - - 249,912 0.93%
Applied Materials, Inc. - - 199,058 0.74%
Oracle America Inc (formerly Sun Microsystems) - - 296,608 1.10% Marvell Technology Inc - - 211,070 0.78%
M West Propco XIII LLC - - 266,765 0.99%
City of Santa Clara/Hyatt Equities LLC - - 194,263 0.72% Top Ten Total 11,248,483$ 19.74% 3,889,188$ 14.40%
City Total 56,926,509$ 27,012,697$
Sources: Santa Clara County Assessor 2022-23 and 2013-14 Combined Tax Rolls through HdL Coren & Cone.

CITY OF SANTA CLARA

PRINCIPAL PROPERTY TAX PAYERS
2022-23 AND 2013-14 COMPARISON FOR GENERAL FUND
(In Thousands)
2022-23 2013-14

7. Principal Property Tax Payers 2022-23 and 2013-14 Comparison for General Fund 226

CITY OF SANTA CLARA

PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
(In Thousands)
Table 8
Fis
cal Year Percentage of Delinquent Percentage of
Ending Gross Current Tax Current Levy Tax Total Total Levy June 30 Tax Levy Collections Collected Collected Collections Collected 2013 / 14 24,027 $ 24,027 $ 100.00% - 24,027 $ 100.00% 2014 / 15 25,550 25,550 100.00% - 25,550 100.00%
2015 / 16 27,603 27,603 100.00% - 27,603 100.00%
2016 / 17 30,605 30,605 100.00% - 30,605 100.00%
2017 / 18 33,312 33,312 100.00% - 33,312 100.00%
2018 / 19 37,374 37,374 100.00% - 37,374 100.00%
2019 / 20 40,288 40,288 100.00% - 40,288 100.00%
2020 / 21 43,680 43,680 100.00% - 43,680 100.00%
2021 / 22 45,539 45,539 100.00% - 45,539 100.00%
2022 / 23 57,619 57,619 100.00% - 57,619 100.00%
Sources: City of Santa Clara and County of Santa Clara, Department of Finance

8. Property Tax Levies and Collections – Last Ten Fiscal Years 227
Table 9
This list is in alphabetical order and represents sales from July 2022 to June 2023 The Top 25 Sales / Use Tax contributors generate 43.% of Santa Clara's total sales and use tax revenue AG Electronic Materials NVIDIA Corporation
Applied Materials One Workplace
Arista Networks Oracle America
Bell Electrical Supply Pace Supply
Costco Wholesale Pivot Interiors
Frontier Ford Porsche Stevens Creek
Home Depot Stevens Creek Auto Imports
Intel Corporation Stevens Creek BMW
Keysight Technologies Tesla
Lenovo Global Technology Wiwynn International
Levi's Stadium World Wide Technology
Lexus of Stevens Creek ZT Systems
Norman S. Wright Mechanical Equipment Corp
Sources: From Muni Services Sales Tax Digest Summary.

CITY OF SANTA CLARA

PRINCIPAL SALE/USE TAX CONTRIBUTORS
June 30, 2023

9. Principal Sale/Use Tax Contributors
228
Table 10
Fiscal Year
Ending June
30 Residential Commercial Industrial Other Total
2013 / 14 25,653$ 13,770$ 267,169$ 2,578$ 309,169$ 2014 / 15 27,139 13,783 277,079 14,936 332,938 2015 / 16 27,789 15,409 321,491 7,112 371,801 2016 / 17 28,007 15,855 341,865 4,682 390,410 2017 / 18 29,082 15,774 355,279 3,562 403,698 2018 / 19 29,734 15,378 359,407 2,428 406,947 2019 / 20 31,867 15,472 383,704 2,815 433,858 2020 / 21 35,440 16,489 399,940 1,394 453,264 2021 / 22 33,275 16,395 448,257 4,447 502,373 2022 / 23 38,021 17,991 500,189 2,964 559,165 Sources: City of Santa Clara

CITY OF SANTA CLARA
El
ectric Utility Charge For Services by Source
Last Ten Fiscal Years
(In Thousands)

10. Electric Utility Charge for Services by Source
229
Table 11
Business
Ac
tivities
Santa Clara
Stadium
Authority
Total Primary
Government Population
Debt per
Capita
Total Personal
Income ($000)
Debt/ Income
Ratio
Fiscal Year
Ending June
30 Certificates of
Participation
Total Governmental
Activities Revenue Bonds
Revenue
Bonds
2013 / 14 26,210$ 26,210$ 227,163$ 653,367$ 906,740$ 121,229 7,480 $ 4,739,710$ 19.13% 2014 / 15 24,579 24,579 226,828 561,556 812,963 120,973 6,720 4,952,711 16.41% 2015 / 16 22,905 22,905 229,719 464,720 717,344 123,752 5,797 5,194,006 13.81% 2016 / 17 21,177 21,177 220,800 429,773 671,750 123,983 5,418 5,454,137 12.32% 2017 / 18 19,392 19,392 208,117 394,827 622,336 129,604 4,802 6,064,143 10.26% 2018 / 19 17,551 17,551 189,158 340,217 546,926 128,717 4,249 6,121,909 8.93% 2019 / 20 15,638 15,638 196,012 325,265 536,915 129,104 4,159 6,180,008 8.69% 2020 / 21 13,654 13,654 184,933 296,796 495,383 130,746 3,789 6,596,037 7.51% 2021 / 22 11,594 11,594 170,413 280,314 462,321 130,127 3,553 7,540,481 6.13% 2022 / 23 10,560 10,560 155,302 245,275 411,137 132,476 3,103 8,953,977 4.59% Sources: Finance Office, City of Santa Clara and MuniServices LLC.

CITY OF SANTA CLARA
RA

TIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
(In Thousands)
Public Facilities Financing Corporation
Go
vernmental Activities

11. Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 230
Fiscal Year
Ending June 30 Population
Total Assessed
Valuation
2013 / 14 121.2 27,012,697$
2014 / 15 121.0 28,758,679
2015 / 16 123.8 32,927,777
2016 / 17 123.9 36,638,297
2017 / 18 129.6 40,109,539
2018 / 19 128.7 43,964,914
2019 / 20 129.1 46,232,453
2020 / 21 130.7 50,118,954
2021 / 22 130.1 52,264,729
2022 / 23 132.5 56,926,788
Sources: State of California, Department of Finance
County of Santa Clara, Department of Finance

CITY OF SANTA CLARA

POPULATION AND ASSESSED VALUATION
Last Ten Fiscal Years
(In Thousands)
Table 12

12. Population and Assessed Valuation – Last Ten Fiscal Years 231
Table 13
% Applicable Debt
Direct Debt:
2013 Refunding Certificates of Participation 100% 10,085,000$ Total Gross Direct Debt 10,085,000
Unamortized Premium/Discount 100% 475,097
Total Net Direct Debt 10,560,097
Overlapping Debt:

Santa Clara County General Fund Obligations 103,032,404 Santa Clara County Pension Fund Obligations 30,323,060
Santa Clara Valley Water District Benefit Assessment District 3,577,244 Santa Clara County Board of Education Certificates of Participation 85,983 San Jose-Evergreen Community College District OPEB Obligations 24,575 West Valley-Mission Community College District General Fund Obligations 2,486,923 Foothill-DeAnza Community College District 7,280,064
San Jose-Evergreen Community College District 532,927
West Valley Community College District 211,607,906
Fremont Union High School District 20,850,931
Campbell Union High School District General Fund Obligations 325,380 Campbell Union School District 9,809,044
Campbell Union High School District 7,945,667
Campbell Union School District General Fund Obligations 75,033 El Camino Hospital District 1,902,859
San Jose Unified School District 694,469
Cupertino Union School District 12,795,141
Santa Clara Unified School District 696,781,863
San Jose Unified School District General Fund Obligations 7,169 Santa Clara County 95,741,855
Foothill-DeAnza Community College District Certificates of Participation 248,979 Santa Clara Unified School District Certificates of Participation 7,468,086 Santa Clara County Vector Control District Certificates of Participation 113,111 Total Overlapping Debt 1,213,710,673
Total Gross Direct and Overlapping Bonded Debt (1) 1,223,795,673 Direct Unamortized Premium/Discount -
TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT 1,223,795,673$ 2022 / 23 Assessed Value 56,926,787,704$
Ratios to Assessed Valuation:

Direct Debt 10,560,097$ 0.020%
Total Gross Debt 2.150%
Total Net Debt 2.150%
Note: (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds.

Source: California Municipal Statistics, Inc.

CITY OF SANTA CLARA

COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT June 30, 2023
Description

13. Computation of Direct and Overlapping Bonded Debt
232
Table 14
Fiscal Year Net
Ending Assessed Debt Limit- 15% of Debt Applicable
June 30 Valuation Assessed Valuation (1) to Limit Le gal Debt Margin 2013 / 14 26,902,139$ 4,035,321$ - 4,035,321$
2014 / 15 28,650,443 4,297,566 - 4,297,566
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 6,919,941 - 6,919,941
2020 / 21 50,021,129 7,503,169 - 7,503,169
2021 / 22 52,170,000 7,825,500 - 7,825,500
2022 / 23 56,833,678 8,525,052 - 8,525,052
Note:

Sources: County of Santa Clara, Department of Finance and City of Santa Clara

CITY OF SANTA CLARA

LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
(In Thousands)
(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."

14. Legal Debt Margin Information – Last Ten Fiscal Years 233
Table 15
Fiscal Year
Ending June 30
Gross
Revenue
Less
Operating
Expense
Net Revenue
Available For
Debt Service Principal Interest
Letter Of
Credit
Fees Total Coverage (1)
2013 / 14 314,847 $ 28 8,954 $ 25,893$ 3,550 $ 7,994 $ 637 $ 12,181 $ 2.13 2014 / 15 332,178 297,846 34,332 6,485 7,990 459 14,934 2.30 2015 / 16 359,084 316,578 42,506 8,958 8,348 358 17,664 2.41 2016 / 17 352,828 317,237 35,591 7,640 8,434 335 16,409 2.17 2017 / 18 383,662 346,825 36,837 11,416 6,594 302 18,312 2.01 2018 / 19 414,975 331,141 83,834 11,897 11,565 607 24,069 3.48 2019 / 20 445,142 368,162 76,980 11,700 6,787 316 18,803 4.09 2020 / 21 465,675 407,627 58,048 9,580 3,862 349 13,791 4.21 2021 / 22 550,445 493,302 57,143 13,005 3,232 8 16,245 3.52 2022 / 23 635,066 602,370 32,696 13,580 2,696 15 16,291 2.01 Notes:

Source: City of Santa Clara

CITY OF SANTA CLARA
Last Ten Fiscal Years
(In Thousands)
(1) The required coverage is 1.00.

PLEDGED REVENUE COVERAGE

ELECTRIC REVENUE BOND

15. Pledged Revenue Coverage Electric Revenue Bond – Last Ten Fiscal Years 234
Table 16
Per
Capita Public County City
Personal Buying Median School Unemployment Unemployment Year Population Income Income Age Enrollment Rate Rate
($000)
2013 / 14 121,229 4,739,710$ 39,097 $ 35.0 15,169 5.4% 4.9% 2014 / 15 120,973 4,952,711 40,941 34.4 15,169 3.9% 3.6% 2015 / 16 123,752 5,194,006 41,971 34.3 15,388 4.2% 3.7% 2016 / 17 123,983 5,454,137 43,991 34.3 15,409 3.8% 3.4% 2017 / 18 129,604 6,064,143 46,790 34.3 15,509 2.9% 2.7% 2018 / 19 128,717 6,121,909 47,561 33.9 15,387 2.1% 1.9% 2019 / 20 129,104 6,180,008 47,868 34.2 15,306 11.0% 9.0% 2020 / 21 130,746 6,596,037 50,449 33.9 14,808 7.0% 5.9% 2021 / 22 130,127 7,540,481 57,947 34.0 14,028 1.8% 1.6% 2022 / 23 132,476 8,953,977 67,589 34.5 13,919 3.2% 2.9% Sources: MuniServices, LLC \ Avenu Insights & Analytics (1) Population data by the California Department of Finance Projections. (2) The California Department of Finance demographics estimates now incorporate 2010 Census counts as a benchmark. (3) Unemployment and Total Employment Data are provided by the EDD's Bureau of Labor Statistics Department. (4) Student Enrollment reflects the total number of students enrolled in the Santa Clara Unified School District.

Other school districts within the City are not accounted for in this report.

CITY OF SANTA CLARA

DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Calendar Years

16. Demographic and Economic Statistics – Last Ten Calendar Years 235
Table 17
Percentage of Percentage of
Number of Total City Number of Total City
Company Employees Employment Employees Employment
Applied Materials, Inc. 8,500 20.9% 8,554 7.1%
Intel Corporation 7,801 19.1% 10,801 9.0%
Advanced Micro Devices Inc. 3,000 7.4%
Nvidia 2,700 6.6%
California's Great America 2,500 6.1% 2,500 2.1%
Dell 2,088 5.1%
Santa Clara University 2,000 4.9% 1,201 1.0%
City of Santa Clara 1,650 4.0% 1,413 1.2%
SVB Financial Group 1,250 3.1%
Macy's 1,200 2.9% 1,400 1.2%
Avaya Inc. - - 2,000 1.7%
EMC Corporation - - 1,418 1.2%
ON Semiconductor Corporation - - 1,100 0.9%
Texas Instruments - - 3,500 2.9%
Total Top Ten 32,689 80.1% 33,887 28.3%
All Others 8,060 19.9% 86,438 71.7%
Total Employment 40,749 100% 120,325 100%
Sources: Fiscal year 2023: Reference Solutions database, Infogroup, Inc., Papillion, Nebraska Sources: Fiscal year 2014: ReferenceUSA database, infogroup, Inc., Papillion, Nebraska

CITY OF SANTA CLARA
PR

INCIPAL EMPLOYERS
Current Year and Ten Years Ago
2023 2014

17. Principal Employers – Current Year and Ten Years Ago 236
Table 18
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
City Council 9.00 9.00 9.00 10.00 10.00 11.00 10.00 9.00 8.50 8.50 City Clerk 7.00 6.00 7.00 5.00 6.00 7.00 7.00 5.00 5.00 5.00 City Attorney 8.00 8.00 8.00 7.00 7.00 6.00 6.00 6.00 6.00 6.00 City Auditor 3.00 3.00 3.00 3.00 - - - - - - City Manager 19.00 19.00 13.00 13.00 13.00 14.00 13.00 16.00 9.00 9.00 Information Technology 6.00 6.00 7.00 7.00 7.00 7.00 7.00 5.00 5.00 4.00 Human Resources 15.00 14.00 15.75 15.75 15.00 15.00 15.00 14.50 14.50 14.50 Finance 69.75 68.75 69.75 61.75 61.00 61.00 61.75 60.25 58.25 58.00 Parks & Recreation 77.75 77.75 82.75 82.75 80.75 80.75 79.00 82.75 82.75 82.00 Library 42.50 42.50 46.75 46.75 46.75 45.50 45.50 47.00 46.50 46.50 Community Development 73.00 72.00 68.75 66.00 65.00 64.00 56.00 42.00 44.00 40.00 Engineering 40.25 39.25 42.25 39.25 39.92 40.92 39.25 38.25 38.00 38.00 Building Maintenance 13.00 13.00 13.00 13.00 13.23 13.23 12.90 10.90 11.40 11.50 Street 55.60 55.50 60.60 60.60 58.60 58.60 59.60 65.35 63.10 62.00 Automotive Services 14.65 14.75 15.65 15.65 15.75 15.75 15.75 15.00 15.00 15.00 Police 231.00 221.00 239.00 239.00 239.00 239.00 231.00 222.00 219.00 222.00 Fire 155.50 154.50 168.25 167.25 167.25 167.50 166.50 179.50 179.50 179.50 Non-Departmental - - 11.00 9.00 4.00 - - - - - Electric Utility 214.00 198.00 198.00 197.00 189.00 186.00 179.00 166.00 156.00 142.00 Water Utility 50.55 50.55 50.80 50.80 50.35 50.85 52.70 50.10 47.10 45.40 Sewer Utility 22.45 22.45 22.20 22.20 22.65 22.15 21.30 19.90 17.90 15.60 TOTAL 1,127.00 1,095.00 1,151.50 1,131.75 1,111.25 1,105.25 1,078.25 1,054.50 1,026.50 1,004.50 Source: City of Santa Clara Annual Budget

CITY OF SANTA CLARA

FULL-TIME EQUIVALENT BUDGETED CITY EMPLOYEES BY PROGRAM/FUNCTION Last Ten Fiscal Years
Fiscal Year Ending June 30

18. Full-Time Equivalent Budgeted City Employees by Program/Function – Last Ten Fiscal Years 237
Table 19
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Culture and Recreation:

Number of library items circulated 2,152,877 1,268,965 736,301 1,598,171 2,509,201 2,612,102 2,700,315 2,479,126 2,491,553 2,260,844 Fire Protection:

Number of calls answered 10,688 10,391 8,853 9,339 9,456 8,849 8,850 8,933 8,403 8,336 Number of inspections conducted 10,143 4,004 4,303 6,404 8,470 9,696 8,260 8,067 8,784 Police Protection:

Number of calls for service
(1)
43,306 61,421 67,211 63,860 58,912 53,865 50,429 51,853 60,208 59,474 Electric System:

Maximum annual demand (MW) 693.9 649.4 590.6 579.3 587.8 586.6 568.1 526.4 491.1 482.4 Total annual energy (Mwh) 4,568,293 4,361,658 3,956,474 3,773,864 3,693,251 3,733,800 3,628,200 3,488,004 3,238,372 3,145,100 Sewer System:

Number of service connections 26,105 25,682 25,948 25,359 25,481 26,236 26,162 25,744 25,656 25,660 Peak flow (5-day average, WPCP)
(MG) 110 110 110 110 110 110 110 110 121 121 Maximum daily capacity of
treatment plant (WPCP) (MGD) 167 167 167 167 167 167 167 167 167 167 Peak flow (5-day average, City)
(MGD) 16 16 16 16 16 16 16 16 16 16
Water System:

Number of service accounts 25,894 25,371 25,592 24,904 25,293 25,670 25,714 25,716 25,656 25,530 Daily Average consumption (MG) 14 13 16 16 16 15 15 15 16.8 18.8 Maximum daily capacity of plant:

Potable Water (MGD) 80 80 80 80 80 80 80 96 87 87 Recycled Water (MGD) 15 15 15 15 15 15 30 14 15 15 Note: (1) Data Based on Calendar Year
Source: City of Santa Clara

CITY OF SANTA CLARA

OPERATING INDICATORS BY FUNCTION/ACTIVITY
Last Ten Fiscal Years
Fiscal Year Ending June 30

19. Operating Indicators by Function/Activity – Last Ten Fiscal Years 238

CITY OF SANTA CLARA
Table 20
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Culture and Recreation:

Number of community centers 4 4 4 4 4 4 4 4 4 4 Number of parks 44 44 44 44 39 39 35 34 34 32
Park acreage 353 367 367 353 254 311 330 274 273 273 Number of golf courses - - - - 1 1 1 1 1 1
Number of swimming pools 11 11 11 11 11 11 11 5 5 5 Number of tennis courts 27 27 27 27 28 28 28 28 28 28 Number of lawn bowling greens 1 1 1 1 1 1 1 1 1 1 Number of lighted soccer fields 7 7 7 7 3 3 3 3 3 3 Number of lighted softball fields 4 4 4 4 7 7 7 7 7 7 Number of neighborhood park buildings 10 10 10 10 8 8 8 8 8 8 Number of gymnastic centers 1 1 1 1 1 1 1 1 1 1 Number of skate parks 1 1 1 1 1 1 1 1 1 1
Number of community theaters 1 1 1 1 1 1 1 1 1 1 Number of libraries 3 3 3 3 3 3 3 3 2 2
Cemetery 2 2 2 2 2 2 2 2 2 2
Fire Protection:

Number of stations 10 10 9 10 10 10 10 10 10 10 Police Protection:

Number of stations 1 1 1 2 2 2 2 2 2 2
Electric System:

Number of meters 59,297 59,227 58,230 57,066 55,971 55,139 54,942 53,824 53,360 52,775 Miles of high voltage lines 631 622 618 616 613 612 608 605 591 590 Number of substations 31 29 29 29 28 27 27 27 27 26 Sewerage and Storm Drain System:

Miles of sanitary sewers 288 288 288 288 288 288 288 288 288 288 Number of sanitary sewer pump stations 6 6 6 6 6 6 6 6 6 6 Miles of storm sewers 194 194 196 195 195 195 195 195 195 - Number of treatment plants 1 1 1 1 Tertiary 1 Tertiary 1 Tertiary 1 Tertiary 1 Tertiary 1 Tertiary 1 Tertiary Number of storm drain pump stations 22 22 22 22 22 22 22 22 22 22 Water System:

Miles of water mains 306 306 306 306 335 335 335 310 335 335 Number of fire hydrants 3,437 3,437 3,248 3,429 3,404 3,382 3,501 3,383 3,315 3,315 Miles of recycled watermains 34 34 34 34 33 33 33 33 33 33 Streets:

Miles of Streets 252 252 252 252 252 252 252 252 252 249 Number of Street Lights 8,431 8,429 8,404 8,235 8,187 8,118 8,112 8,103 8,097 8,054 Number of Traffic Signals 157 186 183 182 207 207 207 206 200 196 Source: City of Santa Clara

CAPITAL ASSETS STATISTICS BY FUNCTION
Last Ten Fiscal Years
Fiscal Year Ending June 30

20. Capital Assets Statistics by Function – Last Ten Fiscal Years 239
Table 21

INSURANCE ANNUAL TERM EXPIRATION
TYPE OF POLICY COMPANY LIMITS (1) PREMIUM (3) YEARS DATE (2) Liability
Comprehensive General Self-insured (Since 1987) $3 million n/a - Ongoing Excess Liability PRISM $50 million $1,823,232 1 7/1/2023 and various other carriers
Workers' Compensation Self-insured (since 1973) $750 thousand n/a - Ongoing Excess Workers' PRISM $5 million $954,076 1 7/1/2023
Compensation and various other carriers
Property Coverage
All Risks, including flood, Alliant Property Insurance
excluding earthquake Program (APIP) $800 million $1,332,290 1 7/1/2023 Various excess carriers
Boiler and Machinery Alliant Property Insurance $100 million not available 1 7/1/2023 Program (APIP)
Various excess carriers
Financial Loss Bonds
Crime Coverage Bond PRISM $10 million $13,403 1 6/30/2023 Notes:
(1) Limits are per occurrence
(2) All policies have been renewed
(3
) Boiler and Machinery APIP premium is included in All Risks premium, $1,332,290. Breakdown is unavailable.

Source: City of Santa Clara

CITY OF SANTA CLARA

STATEMENT OF INSURANCE COVERAGE
June 30, 2023

21. Statement of Insurance Coverage
240
Thi
s page intentionally left blank
241

SUCCESSOR AGENCY CITY OF SANTA CLARA

STATISTICAL SECTION
This part of the City of Santa Clara’s Annual Comprehensive Report provides detailed information to better understand the data presented within the financial statements, note disclosures, and required supplementary information.

TABLES
REVENUE CAPACITY 1 - 3
Contains information to help the reader assess the Successor Agency’s most significant local revenue source, the property tax.

DEBT CAPACITY 4
Presents information to assess the affordability of the Successor Agency’s current levels of outstanding debts.

Successor Agency
242
Thi
s page intentionally left blank
243
Table 1
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Real Property Value 5,996,569$ 5,790,301$ 5,708,617$ 5,372,322$ 6,024,538$ 6,136,642$ 5,710,559$ 4,474,495$ 2,504,578$ 2,428,787$ Other Property Value 26,855 33,102 28,733 25,324 22,913 25,857 27,877 796,082 551,425 450,943 Total Project Value 6,023,424 5,823,403 5,737,350 5,397,646 6,047,451 6,162,499 5,738,436 5,270,577 3,056,003 2,879,730 Less Base Value (8,838) (8,838) (8,838) (8,838) (8,838) (8,838) 49,632 49,322 (8,829) (8,838) Increment Over Base Value 6,014,586 5,814,565 5,728,512 5,388,808 6,038,613 6,153,661 5,788,068 5,319,899 3,047,174 2,870,892 Redevelopment Property
Tax Trust Fund (RPTFF)
(1)
- - - - - - - 5,697 9,365 26,759
Total Tax Revenue -$ -$ -$ -$ -$ -$ -$ 5,697$ 9,365$ 26,759$ Notes:

Source: City of Santa Clara / Santa Clara County Auditor

SUCCESSOR AGENCY OF THE CITY OF SANTA CLARA

BAYSHORE NORTH PROJECT AREA

HISTORICAL TAX INCREMENT
Last Ten Fiscal Years
(In Thousands)
(1) With the State dissolving all RDAs on 02/01/2012, the structure of Tax Increment Revenue has changed. Starting in fiscal year 2012-13, the County's property tax distribution to the Successor Agency was changed to the Redevelopment Property Tax Trust Fund (RPTTF). The RPTTF reported in this table is the amount calculated by the County Auditor-Controller. Under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations.

1. H
istorical Tax Increment – Last Ten Fiscal Years
244
Table 2

ASSESSED ASSESSED

PROPERTY PROPERTY PERCENT

ASSESSEE USE VALUATION OF TOTAL
1 Forty Niners SC Stadium Company LLC Commercial Office Building 777,020,014$ 12.90% 2 SI LLC Commercial Office Building 581,049,978 9.65%
3 Innovation Commons Owner LLC Commercial Office Building 284,347,972 4.72% 4 The Irvine Company Commercial Office Building 235,748,455 3.91% 5 PC Santa Clara Gateway 2 LLC Commercial Office Building 217,295,750 3.61% 6 SCT Owner LLC Commercial Office Building 200,960,600 3.34% 7 Apple Inc Commercial Office Building 196,394,587 3.26% 8 STC Venture LLC Commercial Office Building 185,164,569 3.07% 9 PRII Towers at Great America Owner LLC Commercial Office Building 174,383,234 2.90% 10 PR 3975 Freedom Circle Commercial Office Building 172,013,069 2.86% TOTAL 3,024,378,228$ 50.22%
TOTAL AGENCY ASSESSED VALUE 6,023,423,770$
Source: HDL Coren & Cone

SUCCESSOR AGENCY OF THE CITY OF SANTA CLARA

BAYSHORE NORTH PROJECT AREA

TEN LARGEST ASSESSEES - TAXABLE VALUE
June 30, 2023

2. Ten Largest Assessees – Taxable Value
245
Table 3
HEA

RING APPLICANT'S

TAX ROLL ASSESSED APPEAL DATE OPINION

NUMBER ASSESSEE VALUATION/ORIGINAL S/U
(1)

NUMBER DEADLINE STATUS VALUATION LAND USE
984-92-103 FORTY NINERS 555,214,000$ S 15.0278 88,000,000$ Commerical 984-92-104 FORTY NINERS 555,214,000 S 15.0279 88,000,000 Commerical 984-92-103 FORTY NINERS 555,214,000 S 15.028 88,000,000 Commerical 984-92-104 FORTY NINERS 555,214,000 S 15.0281 88,000,000 Commerical 984-92-103 FORTY NINERS 554,267,314 S 17.0232 140,000,000 Commerical 984-92-104 FORTY NINERS 554,267,314 S 17.0233 140,000,000 Commerical 984-92-104 FORTY NINERS 548,980,708 S 16.0256 100,000,000 Commerical 984-92-103 FORTY NINERS 548,980,708 S 16.0257 100,000,000 Commerical 984-92-103 FORTY NINERS 253,784,158 S 18.1918 250,500,000 Commerical 22-012522 APPLE INC 160,776,054 U 22.1293 50,100,000 N/A 21-081107 CEDAR FAIR S 93,154,425 U 21.3482 46,577,214 N/A 21-081108 CEDAR FAIR S 86,769,758 U 21.3483 42,989,135 N/A 21-081109 CEDAR FAIR S 62,482,975 U 21.3484 35,620,612 N/A 21-081110 CEDAR FAIR S 59,777,200 U 21.3485 29,888,601 N/A 17-018611 CEDAR FAIR S 59,280,246 U 17.1041 58,852,511 N/A 18-018278 CEDAR FAIR S 58,493,748 U 18.0594 50,547,232 N/A 18-042920 CYXTERA COMM 46,130,484 U 22.416 16,130,000 N/A 104-50-025 COHERENT INC 46,023,273 S 15.0256 15,251,322 Commerical 10-037856 SAVVIS COMMU 45,935,890 U 10.5814 40,000,000 N/A 14-032002 SAVVIS COMMU 44,195,581 U 14.171 22,000,000 N/A 5,444,155,836$ 1,490,456,627$
Note:
(1) S=secured roll, U=unsecured roll
Source: Santa Clara County Assessor's Office

SUCCESSOR AGENCY OF THE CITY OF SANTA CLARA
BA

YSHORE NORTH PROJECT AREA
ASSESSMENT APPEAL ACTIVITY OF TOP 20 ASSESSEES
2022-23 Impacts

3. Assessment Appeal Activity of Top 20 Assessees
246
Table 4
2022-23 Assessed Valuation: 6,023,423,770$
Base Year Valuation: (8,837,956)
Incremental Valuation: 6,014,585,814$
Total Debt Project Area’s Share of
6/30/2023
%
Applicable
(1)
Debt 6/30/23
OVERLAPPING TAX AND ASSESSMENT DEBT:

Santa Clara Unified School District 1,076,510,000$ 7.385% 79,500,264$ West Valley-Mission Community College District 694,320,000 3.387% 23,516,618 Santa Clara County 1,041,125,000 0.973% 10,130,146 Santa Clara Valley Water District Benefit Assessment District 38,900,000 0.973% 378,497 El Camino Hospital District 105,480,000 0.008% 8,438 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 113,533,963$
OVERLAPPING GENERAL FUND DEBT:

Santa Clara County General Fund Obligations 1,120,404,570$ 0.973% 10,901,536$ Santa Clara County Pension Obligations 329,741,844 0.973% 3,208,388 Santa Clara County Board of Education Certificates of Participation 935,000 0.973% 9,098 West Valley-Mission Community College District General Fund Obligations 8,160,000 3.387% 276,379 Santa Clara Unified School District Certificates of Participation 11,538,000 7.385% 852,081 City of Santa Clara General Fund Obligations 10,085,000 10.581% 1,067,094 Santa Clara County Vector Control District Certificates of Participation 1,230,000 0.973% 11,968 TOTAL OVERLAPPING GENERAL FUND DEBT 16,326,544$
Less: Santa Clara County supported obligations (102,362) COMBINED TOTAL DIRECT AND OVERLAPPING DEBT 129,860,507$ (2)
TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT 12 9,758,145$ (1) Percentage of overlapping agency's assessed valuation located within boundaries of the project area (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations Ratios to 2022-23 Assessed Valuation :

Combined Total Direct and Overlapping Debt 2.16%
Net Combined Total Direct and Overlapping Debt 2.15%

SUCCESSOR AGENCY OF THE CITY OF SANTA CLARA

BAYSHORE NORTH PROJECT AREA

COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
June 30, 2023

4. Computation of Direct and Overlapping Bonded Debt
Thi
s page intentionally left blank
Electric Utility
Enterprise Fund
(Silicon Valley Power)
Financial Statements
For the year ended June 30, 2023 with
comparative totals as of June 30, 2022
City of Santa Clara, California
1500 Warburton Avenue
Santa Clara, CA 95050/hyphen.uc3796

This page intentionally left blank

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

TABLE OF CONTENTS

Page
INDEPENDENT AUDITOR'S REPORT ................................................................................... 1 Management’s Discussion and Analysis ..................................................................................... 5 Statements of Net Position .................................................................................................... 11 Statements of Revenue, Expenses and Changes in Net Position .......................................... 13 Statements of Cash Flows ..................................................................................................... 14 Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability .............................................. 72 Schedule of Contributions (Pension Plan) ............................................................................ 74 Schedule of Proportionate Share of the Net OPEB Liability and Related Ratios ................. 76 Schedule of Proportionate Share of the Contributions (OPEB Plan) .................................... 77

This page intentionally left blank
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Santa Clara, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the City of Santa Clara Electrical Utility Enterprise Fund (Silicon Valley Power) of
the City of Santa Clara, California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, wh ich collectively comprise Silicon Valley Power’s basic financial statements as listed in the Table of Contents. We did not audit the financial statements of Northern California Power Agency (NCPA), Transmission Agen cy of Northern California (TANC), M-S-R Energy Authority (MSR EA) and M-S-R Public Power Agency (M SR PPA) as of and for the year ended June 30, 2022, related to the calculation of the Investments in Joint Ventures. At June 30, 2023, the Investment in these Joint Ventures collectively represents 4.9%, 6.1% and 1.2%, respectively, of total assets, net position and revenues of Silicon Valley Power. The financial statements of the NCPA, TANC, MSR EA and MSR PPA were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the calculation of the Investments in Joint Ventures, is based solely on the reports of the other auditors.

In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of Silicon Valley Power as of June 30, 2023, and the changes in financial position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Silicon Valley Power, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management’s for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in th e United States of America; and for the design, implementation, and maintenance of in ternal control relevant to the pr eparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Silicon Valley Power’s ability to continue as a going concern for twel ve months beyond the financial stat ement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
, [email protected]
w mazeassociates.com
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assura nce but is not absolute assu rance and therefore is not a guarantee that an audit conducted in accordance with ge nerally accepted auditing standards will always detect a material misstatement when it exists . The risk of not detecting a materi al misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forg ery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individu ally or in the aggregate, they wo uld influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstateme nt of the financial statements, whether due to fraud or error, and design and perform audi t procedures responsive to those risks. Such procedures includ e
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circum stances, but not for the purpose of expressing an opinion on the effectiveness of Silicon Valley Power’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting polici es used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditi ons or events, considered in the aggregate, that raise substantial doubt about Silicon Valley Power’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certa in internal control-related matters that we identified during the audit.

Report on Summarized Comparative Information
We have previously audited Silicon Valley Power’s June 30, 2022 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated November 30, 2022. In our opinion the summarized comparative information presented herein as of and for the year ended June 30, 2022 is consistent, in all material respects, with the audited financial statements from which it has been derived.

Emphasis of Matter
As discussed in Note 1, the financial statements present only Silicon Valley Power and do not purport to, and do not present fairly the financial position of the City as of June 30, 2023, the changes in its financial position, or, where applicable, its cash flows for the year then en ded in accordance with accoun ting principles generally

accepted in the United States of America. Our opinion is not modified with respect to this matter. 2 Changes in Accounting Principles
Management adopted the provisions
of Governmental Accounting Standards Board Statement No. 96, Subscription-based Information Technology Arrangements, which became effective during the year ended June 30, 2023. As
a result, the balances of the SBITA payable and intangible right-to-use assets were $1,437,230 as of July 1, 2022. The Silicon Valley Power restated and increased the balances in that amount, and
the net
effect on the beginning net position and fund balance was zero. See the SBITA disclosure in Note 4 and 5.

The emphasis of this matter does not constitute a modification to our opinions.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and
other required supplementary information as listed in the Table of Contents be presented to supplement the
basic financial statements. Such information is the responsibility of management and, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do
not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards In accordance
with Government
Auditing Standards, we have also issued our report dated November 30, 2023, on our consideration of the City of Santa Clara’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters.

The purpose of
that report is solely to describe the scope of our testing of internal control over financial reporting and complian
ce and the results of that testing, and not to p rovide an opinion on the effectiveness of the City of Santa
Clara’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Santa Clara’s internal control over financial reporting and compliance.

Pleasant Hill, California
November 30, 2023
3 This page intentionally left blank

5 Management’s Discussion and Analysis

MANAGEMENT’S DISCUSSION AND ANALYSIS
The Management's Discussion and Analysis (MD&A) of Silicon Valley Power (SVP) offers a comprehensive overview of SVP's financial activities during the fiscal years concluding on June 30, 2023 and 2022. The purpose of this MD&A is to provide a holistic assessment of SVP's financial performance. To gain a deeper insight into SVP's financial performance, readers are encouraged to examine this MD&A alongside the Basic Financial Statements and their accompanying notes. This combined approach will enhance their comprehension of SVP's financial performance.

SVP, a distinct enterprise fund under the jurisdiction of the City of Santa Clara (City), was created to manage and report on the City's electric power operations. SVP holds ownership of power generation facilities, maintains investments in joint ventures engaged in electricity production, and actively participates in power trading on the open market. These activities are undertaken with the primary objective of ensuring that SVP's retail customers, including the residents, institutions, and businesses within the City, have access to a dependable source of electric power at affordable rates.

The operations of SVP have been significantly influenced by the deregulation of the electric power industry in California, a topic elaborated upon in Note 9 within the financial statements.

FINANCIAL HIGHLIGHTS
Key financial highlights for the fiscal year ended June 30, 2023 are summarized as follows:
 The total assets and deferred outflows of resources surpassed the liabilities and deferred inflows of resources by $1,071.3 million, representing a notable increase of $100.5 million or 10.4% compared to the previous fiscal year's position of $970.8 million. This growth is primarily attributed to a $32.2 million expansion in the net investment of capital assets and a $68.2 million increase in unrestricted net position.
 Operating revenues exhibited a robust increase of $106.1 million or 18.3%, climbing from $581.0 million to $687.1 million. This growth can be chiefly attributed to heightened consumption, the implementation of an 8% rate hike in January 2023, and the recognition of gains in wholesale future trading.
 Operating expenses surged by $90.7 million or 16.1%, ascending from $564.4 million to $655.1 million. This uptick is primarily the result of higher costs associated with purchased resources.
 SVP’s total outstanding long-term debt saw a reduction of $14.4 million, declining from $142.8 million to $128.4 million during the current fiscal year.

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
6 O
VERVIEW OF SVP’S BASIC FINANCIAL STATEMENTS
This annual report comprises a series of financial statements and their accompanying notes, organized to provide readers with a comprehensive understanding of SVP’s financial position. The Basic Financial Statements consist of two key components:

1. Management’s Discussion and Analysis (this part),

2. The Basic Financial Statements, in conjunction with the Notes to these Basic Financial Statements.

The Basic Financial Statements offer insights into both the short-term and long-term financial aspects of SVP.

These statements include:
 Statements of Net Position: These statements present a comprehensive overview of SVP's financial position, encompassing all long-term liabilities on a full accrual basis.  Statements of Revenues, Expenses, and Changes in Net Position: These statements provide detailed information on all of SVP's revenues and expenses, also on a full accrual basis, with a focus on measuring the net revenues and expenses of the program.  Statements of Cash Flows: These statements offer information about cash activities during the fiscal year.

FISCAL YEAR 2022-23 FINANCIAL HIGHLIGHTS
Below is a summary of financial information extracted from the Statements of Net Position (Table1) and the Statements of Revenues, Expenses, and Changes in Net Position (Table 2).

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
7 Description 2023 2022
*
Amount % 2021
*
Pooled cash and investments 4 61.1 $ 417.6 $ 43.5 $ 10.4% 434.9 $ Other assets 238.1 263.4 (25.3) -9.6% 179.5 Capital assets 655.8 635.3 20.5 3.2% 601.7 Total Assets 1,355.0 1,316.3 38.7 2.9% 1,216.1 Deferred outflows on derivative instruments 0.8 0.2 0.6 NA - Deferred outflows on refunding 5.3 6.2 (0.9) -14.5% 7.1

26.8 14.2 12.6 88.7% 15.4 Total Deferred Outflows of Resources 32.9 20.6 12.3 59.7% 22.5 Long-term Debt Outstanding 128.4 142.8 (14.4) -10.1% 156.5 Right-to-use liabilities 4.4 2.3 2.1 91.3% - Net OPEB liability 7.3 13.1 (5.8) -44.3% 11.9 Net pension liabilities 105.8 73.5 32.3 43.9% 98.4 Other liabilities 42.2 68.8 (26.6) -38.7% 39.6 Total Liabilities 288.1 300.5 (12.4) -4.1% 306.4 Deferred inflows on derivative instruments 23.4 42.2 (18.8) -44.5% 13.0 Deferred inflows on refunding 1.3 1.5 (0.2) -13.3% 1.8 Deferred inflows on lease revenue 2.3 2.6 (0.3) NA - Deferred inflows on pension related items 0.8 18.4 (17.6) -95.7% 0.2 Deferred inflows on OPEB related items 0.7 0.9 (0.2) -22.2% 1.8 Total Deferred Inflows of Resources 28.5 65.6 (37.1) -56.6% 16.8 Net Position:

Net investment in capital assets 527.1 494.9 32.2 6.5% 463.7 Restricted for contractual obligation 6.3 6.2 0.1 1.6% 6.8 Unrestricted 537.9 469.7 68.2 14.5% 444.9 Total Net Position 1,071.3 $ 970.8 $ 100.5 $ 10.4% 915.4 $ * Net Investment in Capital Assets were restated to exclude lease receivables and re-categorize it to unrestricted n
et position.

Deferred outflows on pension and OPEB
related items
Table 1
Net Position
(in millions)
Increase (Decrease)
June 30, 2023, 2022, and 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
8 Description 2023 2022 Amount % 2021
Revenues:

Retail 556.2 $ 497.9 $ 58.3 $ 11.7% 453.3 $ Wholesale 85.0 50.0 35.0 70.0% 22.3 Interest Revenue 8.4 6.1 2.3 37.7% 6.8 Net increase (decrease) in fair value of investments (2.8) (21.0) 18.2 86.7% (4.8) Rents and royalties 3.8 3.9 (0.1) -2.6% 3.8 Renewable energy credits 3.9 2.0 1.9 95.0% 1.9 Mandated program receipts 15.9 14.2 1.7 12.0% 13.0 Other 95.0 72.0 23.0 31.9% 32.2 - Total Revenues 765.4 625.1 140.3 22.4% 528.5 Expenses:

Retail 631.0 540.5 90.5 16.7% 432.3 Wholesale 19.4 18.3 1.1 6.0% 12.3 Interest on long term debt and swap termination
payment 2.7 3.1 (0.4) -12.9% 3.8 Mandated program disbursement 4.5 5.5 (1.0) -18.2% 5.8 Other 3.8 - 3.8 100.0% - Total Expenses 661.4 567.4 94.0 16.6% 454.2 Increase (decrease) in net position before transfers 104.0 57.7 46.3 80.2% 74.3 Contribution - - - - 1.9 Transfers in (out) (3.5) (2.3) (1.2) -52.2% (1.7) Increase (decrease) in net position 100.5 55.4 45.1 81.4% 74.5 Net Position - July 1 970.8 915.4 55.4 6.1% 840.9 Net Position - June 30 1,071.3 $ 970.8 $ 100.5 $ 10.4% 915.4 $ Table 2
Revenues, Expenses, and Changes in Net Position
(in millions)
Increase (Decrease)
For the years ended June 30, 2023, 2022 and 2021

In fiscal year 2022-23, SVP's retail operating revenues reached $556.2 million, showing substantial growth from $497.9 million in fiscal year 2021-22 and $453.3 million in fiscal year 2020-21. These figures represent significant increases of approximately 11.7% compared to the preceding fiscal year (2021-22) and 9.8% compared to the fiscal year before that (2020-21). The primary driver behind the growth in fiscal year 2022-23 was the implementation of an 8% rate increase effective as of January 1, 2023, coupled with heightened consumption levels.

In fiscal year 2022-23, SVP's retail operating expenses amounted to $631.0 million, representing a significant uptick from $540.5 million as reclassified in fiscal year 2021-22 and $432.3 million in fiscal year 2020-21. These numbers indicate a notable increase of $90.5 million or 16.7% compared to the preceding fiscal year (2021-22) and $108.2 million or 25.0% compared to the

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
9 f
iscal year before that (2020-21). The higher retail operating expenses for fiscal year 2022-23 were primarily driven by the need to make additional market purchases to meet the rising demand for power.

In fiscal year 2022-23, revenues generated from wholesale resources sales, which encompass both gas and power, reached $85.0 million. This figure represents a substantial increase compared to the $50.0 million as reclassified in fiscal year 2021-22 and the $22.3 million reported in fiscal year 2020-21. Simultaneously, the cost of purchasing wholesale resources for SVP was $19.4 million in fiscal year 2022-23, $18.3 million in fiscal year 2021-22, and $12.3 million in fiscal year 2020-

21. The $35 million surge in wholesale resource sales during the fiscal year 2022-2023 was attributed to the recognition of a $60 million gain in wholesale future trading, in contrast to the reclassified $14 million gain recognized in FY21-22. However, the increase in wholesale power purchases during this fiscal year was primarily due to the elevated prices prevailing in the resource market.

Interest income for fiscal year 2022-23 amounted to $8.4 million, an increase from the $6.1 million reported in fiscal year 2021-22 and the $6.8 million recorded in fiscal year 2020-21. This increase in the most recent fiscal year can be primarily attributed to the higher interest rate environment.

Conversely, interest expense for fiscal year 2022-23 was $2.7 million, which is a decrease from the $3.1 million in fiscal year 2021-22 and the $3.8 million in fiscal year 2020-21. For more detailed information regarding interest income and expense, please refer to Note 5 in the financial statements.

As of June 30, 2023, SVP's net position stood at $1,071.3 million, reflecting a $100.5 million increase from the preceding fiscal year. Within this total, there was a $32.2 million increase in the net investment in capital assets, a $0.1 million increase in the amount restricted for contractual obligations, and a $68.2 million increase in unrestricted net position.

CAPITAL ASSETS
As of the end of fiscal year 2022-23, SVP had invested $655.8 million in capital assets, net of depreciation. Most of this investment was allocated to power generation facilities, with the remaining portion distributed across transmission and distribution assets, right-to-use buildings, and subscriptions for information technology arrangements.

As of June 30, 2023, SVP had several projects that were either completed or in progress. In the fiscal year 2022-23, the Capital Improvement Projects Budget included appropriations for significant investments in substation improvements for the upcoming years.

For more comprehensive information regarding SVP's capital assets, please refer to Note 4 in the financial statements.

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
10 D

EBT ADMINISTRATION
SVP's debt portfolio and its individual components are comprehensively outlined in Note 5 within the financial statements. As of June 30, 2023, SVP's outstanding debt consists of one issue of Revenue Bonds and three issues of Subordinate Revenue Bonds, amounting to a total of $128.4 million. These bonds are backed by the net electric revenues generated by SVP and have maturity dates spanning from fiscal years 2025 through 2033.

ECONOMIC OUTLOOK AND MAJOR INITIATIVES
For detailed information regarding the economic outlook and major initiatives of the City, as well as what is planned for the upcoming year, please refer to the Letter of Transmittal Section of the City's Annual Comprehensive Financial Report for the fiscal year concluding on June 30, 2023.

This section provides an in-depth analysis and insight into the City's economic prospects and its key initiatives moving forward.

CONTACTING SVP’S FINANCIAL MANAGEMENT
These Basic Financial Statements are intended to provide citizens, taxpayers, investors, and creditors with a general overview of SVP’s finances. Questions about these Basic Financial Statements should be directed to the City of Santa Clara Finance Department, 1500 Warburton Avenue, Santa Clara, CA 95050-3796.

See accompanying notes to financial statements

11 ASSETS 2023 2022
Current Assets:

Pooled cash and investments (Note 3) 461,055,857$ 417,583,298$ Investments with fiscal agent (Note 3) 16,197,916 15,196,469 Leases Receivable (Note 2R) 249,167 239,156 Receivables (net of allowances)
Accounts 91,998,401 98,415,474
Interest 1,768,781 1,614,768
Derivative instrument (Note 5G) 8,294,280 15,462,094 Due from the City of Santa Clara (Note 2E) 3,209,849 2,686,894 Inventory of materials and supplies (Note 2F) 15,827,132 13,804,838 Total Current Assets 598,601,383 565,002,991
Noncurrent Assets:

Capital assets (Note 4)
Land 14,371,743 14,371,743
Construction in progress 71,262,465 63,161,131 Buildings, improvements and infrastructure 1,101,647,613 1,065,938,843 Equipment 10,297,966 9,941,798
Right-to-use leased assets 2,916,623 2,916,623 Right-to-use SBITA 3,108,024 -
Accumulated depreciation (547,761,849) (520,990,136) Total Capital Assets (Net of Accumulated
Depreciation) 655,842,585 635,340,002
Other Noncurrent Assets:

Restricted investments (Note 3) 6,324,045 6,146,358 Derivative instrument (Note 5G) 15,163,920 26,724,615 Investments in joint ventures (Note 6) 65,844,941 57,312,242 Investments with fiscal agent (Note 3) - 3,906,331 Deposits (Note 3) 11,127,179 19,518,954
Leases receivable (Note 2R) 2,112,910 2,365,415 Total Other Noncurrent Assets 100,572,995 115,973,915 Total Noncurrent Assets 756,415,580 751,313,917
Total Assets 1,355,016,963 1,316,316,908

DEFERRED OUTFLOWS OF RESOURCES
Accumulated decrease in fair value of hedging
instruments (Note 5G) 783,790 164,564
Deferred outflow on refunding of debt 5,333,697 6,192,411 Deferred outflows on OPEB related items (Note 8) 616,793 1,217,486 Deferred outflows on pension related items (Note 7) 26,223,040 13,021,377 Total Deferred Outflows of Resources 32,957,320 20,595,838 June 30, 2023

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

STATEMENTS OF NET POSITION
with Comparative Totals as of June 30, 2022

Statements of Net Position

See accompanying notes to financial statements

12 LIABILITIES 2023 2022
Current Liabilities:

Accrued liabilities 33,601,331 60,306,912
Interest payable 1,389,163 1,618,146
Accrued compensated absences 566,004 774,797 Current portion of long-term debt (Note 5) 15,140,000 13,580,000 Current portion derivative financial instruments (Note 5G) 783,790 164,564 Current portion of leases obligation (Note 5J) 681,619 654,044 Current portion of SBITA (Note 5K) 392,381 - Total Current Liabilities 52,554,288 77,098,463 Noncurrent Liabilities:

Long-term portion accrued compensated absences 5,888,451 5,995,836 Net pension liability (Note 7) 105,823,291 73,533,480 Net OPEB liability (Note 8) 7,288,705 13,057,945 Long-term leases obligation (Note 5J) 951,003 1,632,622 Long-term SBITA (Note 5K) 2,325,628 -
Long-term debt (Note 5) 113,302,932 129,196,165
Total Noncurrent Liabilities 235,580,010 223,416,048 Total Liabilities 288,134,298 300,514,511

DEFERRED INFLOWS OF RESOURCES
Accumulated increase in fair value of hedging instruments (Note 5G) 23,458,200 42,186,709
Deferred inflow on refunding of debt 1,280,797 1,537,064 Deferred inflow - leases related (Note 2R) 2,282,329 2,571,068 Deferred inflows pension related items (Note 7) 821,311 18,343,263 Deferred inflows OPEB related items (Note 8) 702,262 929,326 Total Deferred Inflows of Resources 28,544,899 65,567,430

NET POSITION
Net investment in capital assets, restated (Note 12) 527,101,920 494,932,518 Restricted 6,324,045 6,146,358
Unrestricted restated (Note 12) 537,869,121 469,751,929 Total Net Position 1,071,295,086 970,830,805$
with Comparative Totals as of June 30, 2022
(SILICON VALLEY POWER)

STATEMENTS OF NET POSITION
June 30, 2023

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND

See accompanying notes to financial statements

13 2023 2022
Operating Revenues:

Residential sales 38,021,218$ 33,275,452$
Commercial sales 17,991,071 16,394,519
Industrial sales 500,189,088 448,256,676
Renewable energy credits 3,916,420 2,024,100
Wholesale resource sales (Note 9) 85,035,267 50,066,651 Mandated program receipts 15,926,482 14,223,250 Other operating revenues 26,084,529 16,802,355
Total Operating Revenues 687,164,075 581,043,003
Operating Expenses:

Operations 92,744,945 91,250,838
Maintenance 31,152,357 24,972,897
Purchased resource 480,208,227 400,071,728
Wholesale resource purchases (Note 9) 19,474,055 18,370,965 Mandated program disbursement 4,541,142 5,533,938 Amortization 1,051,552 673,067
Depreciation 25,934,672 23,547,718
Total Operating Expenses 655,106,950 564,421,151
Operating Income 32,057,125 16,621,852
Nonoperating Revenues (Expenses):

Interest revenue 8,392,327 6,065,834
Net changes in the fair value of investments (2,841,392) (21,010,694) Interest expense (2,659,346) (3,117,699)
Equity in income (losses) of joint ventures 8,532,699 14,639,161 Rents and royalties 3,845,365 3,898,215
Other revenues 60,399,404 40,626,292
Other expenses (3,763,379) -
Total Nonoperating Revenues, net 71,905,678 41,101,109 Income Before Transfers 103,962,803 57,722,961
Transfers from the City of Santa Clara 208,290 330,000 Transfers to the City of Santa Clara (3,706,812) (2,637,123) Net Income 100,464,281 55,415,838
Net Position, Beginning of Year 970,830,805 915,414,967 Net Position, End of Year 1,071,295,086$ 970,830,805$

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Year Ended June 30, 2023
with Comparative Totals for the Year Ended June 30, 2022

Statements of Revenue, Expenses and Changes in Net Position

See accompanying notes to financial statements

14 2023 2022

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 587,190,157 $ 494,683,368 Payments to suppliers (583,494,659) (452,491,924) Payments to employees for salaries and benefits (52,546,917) (45,739,420) Rents and royalties received 3,774,218 3,823,785 Resource energy trading escrow 8,391,775 (13,996,290) Wholesale resource sales 85,035,267 50,066,651 Wholesale resource purchases (19,474,055) (18,370,965) Renewable energy credits 3,916,420 2,024,100 Other receipts 69,427,502 48,415,239
Net Cash provided by Operating Activities 102,219,708 68,414,544

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES
Increase (decrease) in due from other funds (522,955) (83,679) Changes in restricted investments 177,687 (662,638) Transfers in 208,290 330,000
Transfers out (3,706,812) (2,637,123)
Net Cash (used in) Noncapital Financing Activities (3,843,790) (3,053,440)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets, net (45,362,719) (50,687,039) Principal payments on debt (14,573,440) (13,632,958) Interest paid on debt (3,089,729) (3,325,270) Net Cash (used in) Capital and Related Financing Activities (63,025,888) (67,645,267)

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

STATEMENTS OF CASH FLOWS
with Comparative Totals for the Year Ended June 30, 2022 For the Year Ended June 30, 2023

Statements of Cash Flows

See accompanying notes to financial statements

15 2023 2022

CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends 8,236,726 5,944,739
Net increase (decrease) in the fair value of investments (2,841,392) (21,010,694) Payments made by fiscal agent 16,555,791 16,294,079 Deposits made with fiscal agent (13,650,909) (16,900,863) Net Cash (used in) Investing Activities 8,300,216 (15,672,739) Net Increase (Decrease) in Cash and Cash Equivalents 43,650,246 (17,956,902) Cash and cash equivalent at Beginning of Period 423,729,656 441,686,558 Cash and cash equivalent at End of Period 467,379,902$ 423,729,656$ Reconciliation of Operating Gain (Loss) to Net Cash
Provided (Used) by Operating activities:

Operating income 32,057,125 16,621,852
Adjustments to reconcile operating income to net cash
p
rovided (used) by operating activities:
(Decrease) Increase in due to OPEB system (5,395,611) (438,425) (Decrease) Increase in due to retirement system 1,566,196 (4,738,491) (Decrease) Increase in due to lease and SBITA Obligation 1,006,894 616,466 Depreciation 25,934,672 23,547,718
Change in assets and liabilities:

Receivable, net 6,417,073 (21,670,483)
Inventory (2,022,294) (1,668,043)
Accrued liabilities (25,723,647) 24,350,379
Restricted cash (177,687) 662,638
Compensated absences ( 316,178) 602,716
Other receipts 64,244,769 44,524,507
Other expenses (3,763,379) -
Resource trading escrow 8,391,775 (13,996,290) Net Cash Provided by Operating Activities 102,219,708$ 68,414,544$ NONCASH TRANSACTIONS:

Joint Ventures
Nonoperating Income (Expense) 8,532,699$ 14,639,161$ (SILICON VALLEY POWER)

STATEMENTS OF CASH FLOWS
with Comparative Totals for the Year Ended June 30, 2022

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
For the Year Ended June 30, 2023

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022

16 NOTE 1 – DEFINITION OF THE REPORTING ENTITY
Th
e City of Santa Clara (the City), California’s Electric Utility Enterprise Fund, which began operating as Silicon Valley Power (SVP) in 1997, commenced operations over 100 years ago in 1896. Originally, SVP constructed a lighting plant consisting of forty-six 2000 candlepower direct current lamps and a dynamo (a type of electric generator) which entered into service in October 1896. In late 1903, SVP invested $5,000 to convert the system to alternating current and abandoned the small generating plant. Wholesale power was purchased from United Gas and Electric Company of San Jose.

Between 1903 and 1965, SVP purchased all of its electric power requirements from investor- owned utilities. In 1965, it received an allocation of power from the Federal Central Valley Project and began to diversify its resources. SVP became a charter member of the Northern California Power Agency (NCPA) in June 1968. Throughout the 1970’s, SVP and NCPA worked on behalf of all municipal electric utilities in Northern California to gain access to wholesale transmission markets and to jointly develop cost-effective electric generation resources.

In 1980, SVP became a generating utility for the first time in 73 years with the start of operations of the 6-Megawatt Cogen No. 1 power plant. In 1983, the 110 Megawatt NCPA Geothermal Project, the first municipally owned and operated geothermal power plant in the United States, entered service with SVP as lead partner holding a 55% participation share. Subsequently, SVP participated in further jointly owned power generation projects including hydroelectric, natural gas and coal fired generation. In 2005, SVP placed the 147 Megawatt Don Von Raesfeld Power Plant into service.

Today, SVP has grown to approximately 8,431 streetlights and serves approximately 59,271 electric customers. As SVP looks to the future, it continues to be responsive to the electric market development by increasing its renewable power resources, reducing its greenhouse gas (GHG) footprint, and working with its customers to enhance the value they receive from municipal ownership of their electric utility.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Presentation
SVP’s Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Government Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America. The electric enterprise fund is included in the City’s Annual

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 2- SUMMARY OF SIGNIIFICANT ACCOUNTING POLICIES (continued) 17 Comprehensive Financial Report, and therefore, these financial statements do not purport to r
epresent the financial position and changes in financial position of the City.

B. Basis of Accounting
SVP reports its activities as a proprietary fund type (Enterprise Fund) which is maintained on the accrual basis of accounting wherein revenues are recognized in the accounting period in which they are earned regardless of whether they are received, and expenses are recognized in the period in which the related liabilities are incurred. Certain indirect costs are included in program expenses reported for individual functions and activities.

During the year ended June 30, 2022, SVP implemented the following GASB Statement:

The GASB issued Statement No. 87 "Leases.” The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. To be consistent with the Citywide implementation, the provisions of this Statement were implemented during fiscal year 2022.

As a result, the beginning the balances of leases receivable and deferred inflows of resources related to leases were $2,832,684 as of July 1, 2021. The balances of the lease payable and intangible right-to-use asset were $2,916,623 as of July 1, 2021. SVP restated and increased the balances in that amount and the net effect on beginning net position was zero.

The GASB issued Statement No. 89 "Accounting for Interest Cost Incurred Before the End of a Construction Period.” The objectives of this Statement are to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and to simplify accounting for certain interest costs. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in the financial statements. The provisions of this Statement were implemented during fiscal year 2022. The implementation had no effect on the financial statements.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 2- SUMMARY OF SIGNIIFICANT ACCOUNTING POLICIES (continued) 18 The GASB issued Statement No. 93 “Replacement of Interbank Offered Rates.” The primary ob
jective of this Statement is to address accounting and financial reporting implications that result from the replacement of an interbank offered rate (IBOR). The provisions of this Statement were implemented during fiscal year 2022. The implementation had no effect on the financial statements.

The GASB issued Statement No. 97 “Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans-An Amendment of GASB Statements No.14 and No. 84, and a Supersession of GASB Statement No.

32.” The objectives of this statement are to (1) increase consistency and comparability related to reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. This statement becomes effective for periods beginning after June 15, 2021. The implementation had no effect on the financial statements.

The GASB issued Statement No. 99 “Omnibus 2022.” The primary objective of this Statement is to enhance comparability in reporting and improve the consistency of authoritative literature by addressing practice issues identified during implementation and application of certain GASB statements. The provisions of this Statement related to LIBOR, SNAP, and Leases, were implemented during fiscal year 2022.

During the year ended June 30, 2023, SVP implemented the following GASB Statement:

The GASB issued Statement No. 91 “Conduit Debt Obligation.” The objective of this statement is to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practices. This statement becomes effective for periods beginning after December 15, 2021. The implementation had no effect on the financial statements.

The GASB issued Statement No. 92 “Omnibus 2020.” The objective of this statement is to enhance comparability in reporting and improve the consistency of authoritative literature by addressing practice issues identified during implantation of certain GASB statements. This statement becomes effective upon issuance for requirements related to GASB 87. For GASB 73, GASB 74, and GASB 84 as well as measurement of liabilities associated with asset retirement

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 2- SUMMARY OF SIGNIIFICANT ACCOUNTING POLICIES (continued) 19 obligations, the requirements become effective for reporting periods beginning after June 15, 2021.

Th
e implementation had no effect on the financial statements.

The GASB issued Statement No. 94 “Public-Private and Public-Public Partnerships and Availability Payment Arrangements.” The objective of this statement is to address issues related to public-private and public-public partnership arrangements and to provide guidance for accounting and financial reporting for availability payment arrangements. This statement becomes effective for periods beginning after June 15, 2022. The implementation had no effect on the financial statements.

The GASB issued Statement No. 96 “Subscription-Based Information Technology Arrangements.” The objective of this statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users. This statement becomes effective for periods beginning after June 15, 2022. The provisions of this State were implemented during the fiscal year 2022-23.

As a result, the balances of the SBITA payable and intangible right-to-use SBITA asset were $1,437,230 as of July 1, 2022. SVP restated and increased the balances in that amount, and the net effect on beginning net position and fund balance was zero. See the disclosure in Note 5.

SVP is analyzing the effects of the following pronouncements and plans to adopt them by the effective dates:

The GASB issued Statement No. 100 “Accounting Changes and Errors Corrections.” The objective of this statement is to establish accounting and financial reporting requirements for (a) accounting changes and (b) the correction of an error in previously issued financial statements.

This statement becomes effective for periods beginning after June 15, 2023. SVP is currently evaluating the impact on the financial statements.

The GASB issued Statement No. 101 “Compensated Absences.” The objective of this statement is to amend the existing requirements for the recognition of compensated absences liability. This statement becomes effective for periods beginning after December 15, 2023. SVP is currently evaluating the impact on the financial statements.

C. Measurement Focus
Enterprise funds are accounted for on a cost of services or economic resources measurement focus, which means that all liabilities associated with the activity are included on their Statement of Net Position. Enterprise fund type operating statements present increases (revenues) and decreases (expenses) in total net position. Reported net position is segregated into three categories – net investment in capital assets, restricted, and unrestricted.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 2- SUMMARY OF SIGNIIFICANT ACCOUNTING POLICIES (continued) 20 D. C ash and Investments
SVP’s cash and investments pool is maintained by the City except for fiscal agent cash and investments.

While maintaining safety and liquidity, the City maximizes investment return by pooling its available cash for investment purposes. Unless there are specific legal or contractual requirements to do otherwise, interest earnings are apportioned among funds according to average monthly cash and investment balances. It is generally the City's intention to hold investments until maturity.

City investments are stated at fair value (see Note 3).

Cash and cash equivalents for purposes of the statement of cash flows include pooled cash and investments and cash designated for construction. Transactions with City-wide cash management pools are similar to those with external investment pools; therefore, since pooled cash and investments have the same characteristics as demand deposits in that the City's individual funds and component units may withdraw additional monies at any time without prior notice or penalty, pooled cash and investments are considered essentially demand deposit accounts.

Cash and investments with fiscal agent, a bond reserve investment pool, and amounts classified as deposits are not considered cash and cash equivalents.

E. Due from City of Santa Clara
During the course of operations, transactions occur between SVP and the City for goods provided or services rendered. The related receivables, net, are classified as “Due from the City of Santa Clara” on the accompanying statement of net position.

F. Inventory of Materials and Supplies
Inventory of materials and supplies is accounted for using the consumption method and is stated at average cost. Inventory consists of expendable supplies held for consumption by the electric utility.

G. Capital Assets
All capital equipment and right-to-use equipment with a value of $5,000 or more, buildings, improvements and infrastructure, right-to-use building with costs exceeding $20,000 or more, and the right-to-use SBITA with a value of $400,000 or more, with useful lives exceeding two years are capitalized. These assets are valued at historical cost or estimated historical cost if actual historical cost is not available except for intangible right -to-use assets, the measurement of which discussed in Note 2R and 2S below. Contributed capital assets are valued at their estimated acquisition value on the date contributed. Depreciation is recorded on a straight-line basis over the

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 2- SUMMARY OF SIGNIIFICANT ACCOUNTING POLICIES (continued) 21 estimated useful lives of the assets (buildings and improvements: 20 to 50 years; equipment: 3 to 2 5 years; and right-to-use SBITA assets: 3-25 years) and is charged as an expense against operations. Accumulated depreciation is reported on the statement of net position.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets.

Capital assets and the related obligations under lease/purchase agreements are capitalized and accounted for in accordance with Accounting Standards Codification (ASC) Topic 840. Interest is capitalized on construction in progress in accordance with ASC Topic 835, Capitalization of Interest Cost in Situations Involving Certain Tax-Exempt Borrowings, and Certain Gifts and Grants. Accordingly, interest capitalized is the total interest cost for the date of the borrowings net of any interest earned on temporary investments of the borrowed proceeds until the specified asset is ready for its intended use. There was no interest capitalized for the fiscal years ended June 30, 2022 or 2023.

H. Joint Ventures
SVP participates in several joint ventures in accordance with GAAP. If SVP’s equity in net losses of a joint venture exceeds its investments, use of the equity method is suspended except to the extent that SVP is obligated to provide further support or has guaranteed obligations of the joint venture.

SVP advances funds to certain of its joint ventures in the form of refundable advances, project advances, and operating and maintenance advances. Refundable advances accrue interest at rates stated in the related agreements. Operating, maintenance, and project advances are charged to operations when incurred.

Capitalized project costs are charged to operations in the event that a project is determined to be not economically feasible.

I. Compensated Absences
Amounts of vested or accumulated vacation leave and certain benefits that are not expected to be liquidated with expendable available financial resources are reported in the SVP financial statements as an expense and liability.

In accordance with GAAP, Accounting for Compensated Absences, a liability for sick leave and benefits is accrued using the vesting method. The vesting method provides that a governmental entity estimate its accrued sick leave liability based on the sick leave accumulated at the statement of net position date by those employees who currently are eligible to receive termination payments

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 2- SUMMARY OF SIGNIIFICANT ACCOUNTING POLICIES (continued) 22 as well as other employees who are expected to become eligible in the future to receive such p
ayments. Estimated sick leave payments are recorded as an expense and liability by SVP.

J. Risk Management
SVP is covered under the City’s self-insurance programs via Internal Service Funds. There were no significant reductions in insurance coverage from the prior year by major categories of risk and the amount of settlements did not exceed insurance coverage for the past four fiscal years.

Additional information with respect to the City’s self-insurance programs can be found in the City’s Annual Comprehensive Financial Report.

K. Electric Resource Purchased
SVP purchases power from various suppliers and agencies (including joint powers agencies) for resale to its customers (see Note 10). SVP also engages in numerous resource energy transactions with the objective of reducing its overall cost of resource energy. Gross resource energy sales and resource energy purchases are recorded as operating revenue and expense, respectively (see Note 9).

L. Bond Discounts/Issuance Costs
Bond discounts are presented as a reduction of the face amount of bonds payable, whereas issuance costs are recognized in the current period.

M. Revenue Recognition
Operating revenues are recognized based on cycle billings periodically rendered to customers.

Operating revenues for services provided, but not billed at the end of the fiscal year, are recognized and accrued based on estimated consumption. Operating revenues primarily include the sales of electric power to residential, commercial, industrial, and municipal customers.

Non-operating revenues primarily represent interest income, grants, rents, and other non-recurring miscellaneous income.

N. Taxes on Income
As an agency of the City, SVP falls under the review of the Internal Revenue Code Section 115 and corresponding California Revenue and Taxation Code provisions. As such, it is not subject to federal income or state franchise taxes.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 2- SUMMARY OF SIGNIIFICANT ACCOUNTING POLICIES (continued) 23 O. D eferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. SVP has three items that qualify for reporting in this category:
deferred outflow related to the refunding, pension and OPEB.

In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. In the government‐wide financial statements SVP reports deferred amounts related to derivative instruments, refunding, leases and deferred amounts related to pension and OPEB.

P. Net Position and Fund Equity
SVP may fund certain programs with a combination of restricted and unrestricted net position.

The policy is to first apply restricted net position followed by unrestricted net position if necessary.

Q. Use of Estimates
The preparation of financial statements in conformity with GAAP in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

R. Lease Agreements
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment.

Lessee - SVP is a lessee for noncancellable lease of buildings. SVP recognizes a lease liability with an initial, and individual value of $100,000 and an intangible right‐to‐use lease asset (lease asset) in the statement of net position financial statements.

At the commencement of a lease, SVP initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 2- SUMMARY OF SIGNIIFICANT ACCOUNTING POLICIES (continued) 24 commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a
straight‐line basis over its useful life.

Key estimates and judgments related to leases include how SVP determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:
 SVP uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, SVP generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease.  Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that SVP is reasonably certain to exercise.

SVP monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.

Lessor - SVP is a lessor for noncancellable leases of land and building. SVP recognizes a lease receivable and a deferred inflow of resources in the financial statements.

At the commencement of a lease, SVP initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how SVP determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
 SVP uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease.  Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 2- SUMMARY OF SIGNIIFICANT ACCOUNTING POLICIES (continued) 25 SVP monitors changes in circumstances that would require a remeasurement of its lease, and will r
emeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. SVP has leases related to fiber and land use and the balances related to the leases receivable and deferred inflow of resources as of June 30, 2022 were $2,604,571 and $2,571,068, respectively. SVP recognized $11.894 in lease revenue and $68,494 in interest revenue during the fiscal year 2021-22 related to these leases. The leases receivable and deferred inflow of resources as of June 30, 2023 were $2,362,077 and $2,282,329 respectively. SVP recognized $284,929 in lease revenue and $63,636 in interest revenue during the fiscal year 2022-23 related to these leases.

S. Subscription-Based Information Technology Arrangements (SBITAs) Accounting A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.

At the commencement of a SBITA, SVP initially measures the subscription liability at the present value of payments expected to be made during the contract term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or the useful life of the underlying IT assets. SVP recognizes SBITA liabilities with an initial, individual value of $400,000 or more for all funds based on the future SBITA payments remaining at the start of the contract.

Key estimates and judgments related to SBITAs include how SVP determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
 SVP uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, SVP uses its estimated incremental borrowing rate as the discount rate for subscription liabilities.  The subscription term includes the noncancellable period of the subscription.  Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that SVP is reasonably certain to exercise.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 2- SUMMARY OF SIGNIIFICANT ACCOUNTING POLICIES (continued) 26 SVP monitors changes in circumstances that would require a remeasurement of its subscription a
nd will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

Subscription assets are reported with other capital assets and subscription liabilities are reported with liabilities on the statement of net position.

T. Prior Year Summarized Comparative Information
The basic financial statements include certain prior year summarized comparative information in total but not at the level of detail required for a presentation in accordance with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the SVP’s financial statements for the year ended June 30, 2022, from which the summarized information was derived.

U. Reclassification
In the past, the gains recognized from futures transactions in natural gas and power were reported as negative expenses in the purchased resource. In fiscal year 2022-23, the gains recognized from futures transactions in natural gas and power are reported as revenues in the wholesale resource sales. This change has been applied retroactively to the comparative financial statement for the fiscal year 2021-22. Consequently, there is a $14,018,411 increase in both wholesale resource sales and purchased resource expenses for that fiscal year. This reclassification has no impact on the net position in fiscal year 2021-22 (See Note 9).

NOTE 3 – CASH AND INVESTMENTS
SVP’s cash and investments pool is maintained by the City except for fiscal agent cash and investments. A full description of the City’s cash and investment policy is in Note 7 of its Annual Financial Report.

A. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s Investment Policy and the California Government Code allow the City to invest in certain types of investments, provided the credit ratings of the issuers are acceptable to the City.

The table below also identifies certain provisions of the City’s Investment Policy and the California Government Code that address interest rate risk, credit risk, and concentration of credit risk.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 3 – CASH AND INVESTMENTS (continued)
27 Minimum Maximum Maximum
Maximum Credit Percentage Investment
Authorized Investment Type Maturity Quality or Portfolio In One Issuer U.S. Treasury Obligations 7 years N/A 100% 100%
U.S. Agency Securities
(1) 7 years Top three ratings
c
ategories
80%
(2) 40%
N
egotiable Certificates of Deposit 5 years A/A1 30% 5%
Bankers Acceptances 180 days N/A 25% 5%
Commercial Paper 270 days A1 / P1 25% 5%
(3)
California Local Agency Investment
Fund
N/A N/A None $75M Per
A/C
Repurchase Agreements 60 days N/A 50% 20%
Reverse Repurchase Agreements
(requires City Council approval)
92 days N/A 20% 10%
Municipal Obligations 7 years N/A 20% 5%
Medium Term Corporate Notes 5 years Top three ratings
categories
20% 5%
Mutual Funds / Money Market Funds N/A Top rating category 20% 10% Joint Power Authority Investment N/A Top rating category 100% 100% Supranational Obligations 5 years AA 20% 10%
Asset-Backed Securities 5 years AA 10% 5%
Non-Negotiable Certificates of
Deposit 5 years N/A 10% 5%
Mortgage-Backed Securities 12 years
(4) AA 1 5% 5%
(2)
Callable securities are limited to 30% of the portfolio. (3)
No more than 10% of the outstanding commercial paper of any single issuer. t
ime of purchase for Mortgage-Backed Securities (MBS). Maximum Final Maturity for MBS's = 30 years with balloon payments.
(1)
Securities issued by the Federal Farm Credit Bank (FFCB), the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), local agencies and other U.S. government sponsored enterprises. (4)
Maximum Weighted Average Life with Current Public Securities Association Assumptions =12 years at

B. Investments Authorized by Debt Agreements
The City invests bond proceeds restricted for construction in instruments that are stated in the Investment Policy and in various return-guaranteed investment agreements. These investments

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 3 – CASH AND INVESTMENTS (continued)
28 are invested in accordance with bond indentures and the maturities of each investment should not e
xceed the final maturity of each bond. Bond proceed investments are reported monthly to the City Council.

SVP also maintains required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if SVP fails to meet its obligations under these debt issues. The California Government Code 53601 (L) allows these funds to be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, other agreements, or certificates of participation in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance.

C. Pension Rate Stabilization Program
In February 2017, the City Council approved a Pension Rate Stabilization Program, (PRSP) Trust administered by Public Agency Retirement Services (PARS). The PRSP is an irrevocable trust and qualifies as an Internal Revenue Section 115 trust. This trust will assist the City in mitigating the CalPERS contribution rate volatility. Investments of funds held in Pension Rate Stabilization Program (PRSP) are governed by the Investment Guideline Document for the investment account and by the agreement for administrative services with the Public Agency Retirement Services (PARS), rather than the general provisions of the California Government code or the City’s investment policy. The City elected a discretionary investment approach which allows the City to maintain oversight of the investment management, control on target yield and the portfolio’ risk tolerance. The assets in this program will eventually be used to fund Pension Plan obligations.

As part of the year-end process for fiscal year 2016-17, the City Council approved SVP to designate and make an initial deposit of $3.5 million in fiscal year 2018 towards pre-funding the City’s pension obligations. As of June 30, 2023, the balance in the pension rate stabilization program trust was $6.3 million.

D. Credit and Interest Rate Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Interest rate risk is the risk that changes in market interest rate will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment is the greater the sensitivity of its fair value to changes in market interest rates to be.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 3 – CASH AND INVESTMENTS (continued)
29 Information about the sensitivity of the fair values of SVP’s investments to market interest rate f
luctuations is provided by the following table that shows the distribution to SVP’s investment by maturity.
2023 2022
Credit Under 180 181 - 365 1 - 3 3 - 5 Fair Fair
Type of Investment Rating Days Days Years Years Value Value Cash and Investments
- City Treasury:

Cash N /A 46,773,624$ - $ -$ -$ 46,773,624$ 75,462,582$ US Treasury Notes A aa 1,959,511 29,049,852 53,909,406 90,659,754 175,578,523 152,469,273 Federal Farm Credit Bank A aa - 2,137,906 19,224,572 - 21,362,478 34,991,626 Federal Home Loan Bank A aa 4,307,869 2,124,947 2,100,729 - 8,533,545 10,624,125 Federal National Mortgage
Association Aaa 2,229,310 - 14,160,521 - 16,389,831 20,392,852 Federal Home Loan Mortgage Corporation Aaa - - 7,885,349 - 7,885,349 11,620,950 Federal Home Loan Mortgage
Corporation
Mortagage-Backed Security Aaa - - - 2,217,115 2,217,115 - Corporate Notes Aaa - - 6,229,168 - 6,229,168 6,218,423 Corporate Notes Aa - 1,772,703 10,785,485 8,513,217 21,071,405 16,936,060 Corporate Notes A 284,765 9,429,224 34,437,284 5,942,324 50,093,597 44,318,210 Supranational Notes Aaa - - 4,540,810 - 4,540,810 7,529,238 Asset-Backed Securities Aaa - - 3,265,755 860,939 4,126,694 4,707,312 Municipal Notes Aaa 6 22,871 - 1,074,708 - 1,697,579 1,068,661 Municipal Notes Not Rated - - - - - 599,091 Certificates of Deposit A-1 - - 3,165,831 - 3,165,831 4,637,466 Wells Fargo Money Market
Funds Not Rated 88,900,304 - - - 88,900,304 420,314 State Investment Pool (LAIF) Not Rated 2,490,004 - - - 2,490,004 25,587,115 Cash and Investments
- City Treasury 147,568,258 44,514,632 160,779,618 108,193,349 461,055,857 417,583,298 Cash and Investments
- Other:

Cash (Debt Fund) N/A 6,195,375 - - - 6,195,375 6,085,210 Cash (Pension Rate Stabilization
Investment) N/A 4 ,289 - - - 4,289 - Mutual Fund - Goldman FS
- Money Market Funds
(Debt Funds) Aaam - - - - - 8,473,195 Mutual Fund - JP Morgan
- Money Market Funds
(Debt Funds) Aaam 10,002,541 - - - 10,002,541 4,544,395 Pension Rate Stabilization
Investment
(Cash and Equivalents) Not Rated 280,435 - - - 280,435 62,426 Pension Rate Stabilization
Investment
(Mutual Fund - Equity) Not Rated 1,823,569 - - - 1,823,569 1,927,138 Pension Rate Stabilization
Investment
(Mutual Fund - Fixed Income) Not Rated 4,215,752 - - - 4,215,752 4,156,794 Collateral Obligations
(Archer Daniels Midland and
CAISO) Not Rated 11,127,179 - - - 11,127,179 19,518,954 Investments - Other 33,649,140 - - - 33,649,140 44,768,112 Total Cash and Investments 181,217,398$ 44,514,632$ 160,779,618$ 108,193,349$ 494,704,997$ 462,351,410$ Maturity

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 3 – CASH AND INVESTMENTS (continued)
30 The City is a voluntary participant in the Local Agency Investment Fund (LAIF). LAIF is r
egulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF’s investment portfolio mainly consists of Treasuries, loans, Federal Agency securities, and collateralized mortgage obligations. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond proceeds accounts are subject to one time deposit with no cap and are set up with a monthly draw down schedule. The carrying value of LAIF approximates fair value.

Mutual funds are available for withdrawal on demand. See City’s Annual Financial Report Note 7 to the financial statements for additional detail on the fiscal year 2022-23 investment portfolio.

E. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. Under California Government Code Section 53651, depending on specific types of eligible securities, a bank must deposit eligible securities posted as collateral with its Agent having a fair value of 105% to 150% of the City’s cash on deposit. All of the City’s deposits are either insured by the Federal Depository Insurance Corporation (FDIC) or collateralized with pledged securities held in the trust department of the financial institutions.

The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, the City will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The City’s Investment Policy limits its exposure to custodial credit risk by requiring that all security transactions entered into by the City, including collateral for repurchase agreements, be conducted on a delivery-versus-payment basis. Securities are to be held by a third party custodian.

F. Fair Value Hierarchy
SVP categorizes its fair value measurements within the fair value hierarchy established by GAAP.

The hierarchy is based on the valuation input used to measure the fair value of asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. See City’s Annual Financial Report Note 7 to the financial statements for more detailed information.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 3 – CASH AND INVESTMENTS (continued)
31 Fair Value Measurements Using
Derivative
Instruments
Measured at Fair
Quoted Prices in
Active Markets for
Identical Assets
Other
Observable
Inputs
6/30/2023 Level 1 Level 2 Exempt
(1)
Investments by Fair Value Level
Short Term Investments
US Treasury Notes 175,578,523$ 175,578,523$ $ - $ - Federal Farm Credit Banks 21,362,478 - 21,362,478 - Federal Home Loan Banks 8,533,545 - 8,533,545 - Federal National Mortgage Association 16,389,831 - 16,389,831 - Federal Home Loan Mortgage Corp 7,885,349 - 7,885,349 - Federal Home Loan Mortgage Corporation
Mortagage-Backed Security 2,217,115 - 2,217,115 - Corporate notes 77,394,170 - 77,394,170 - Supranational 4,540,810 - 4,540,810 - Asset-Backed Securities 4,126,694 - 4,126,694 - Municipal Bonds 1,697,579 - 1,697,579 - Certificates of Deposit 3,165,831 - 3,165,831 - Wells Fargo Money Market Fund 88,900,304 - - 88,900,304 Total Short Term Investments 411,792,229 175,578,523 147,313,402 88,900,304 Debt Securities and Other
Mutual Fund - JP Morgan

- Money Market Funds (Debt Funds) 10,002,541 - - 10,002,541 Pension Rate Stabilization Investment
(Cash and Equivalents) 280,435 280,435 - - Pension Rate Stabilization Investment
(Mutual Fund - Equity) 1,823,569 1,823,569 - - Pension Rate Stabilization Investment 4,215,752 3,811,507 404,245 - Collateral Obligations
(Archer Daniels Midland and CAISO) 11,127,179 - - 11,127,179 Total Debt Securities and Other 27,449,476 5,915,511 404,245 21,129,720 Total Investment by Fair Value Level $ 439,241,705 $ 181,494,034 $ 147,717,647 $ 110,030,024 Investments Measured at the Amortized Cost
State Investment Pool (LAIF) 2,490,004 - - 2,490,004 Total Investments 441,731,709 $ 181,494,034 $ 147,717,647 $ 112,520,028 Cash in Banks 52,973,288
Total Cash and Investment 494,704,997$
Investments Derivative Instruments
Open contract power trading - current assets 756,675$ 756,675$ Open contract gas trading - liabilities (667,540) (667,540) Open contract gas trading - liabilities (116,250) (116,250) Open contract gas trading - non-current assets 22,701,525 22,701,525 Total Investment Derivative Instruments 22,674,410$ 22,674,410$ (1) Accounts in exempt column are Mutual Fund-Money Market, Collateral Obligation and LAIF investments which are exempt from fair value hierarchy, or reported at amortized cost.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 3 – CASH AND INVESTMENTS (continued)
32 The City utilizes a third party pricing service to determine fair market prices for its individually h
eld investments. Evaluations are based on market information available at the time and generated using proprietary evaluated pricing models and methodologies.

Level 1 investments are valued using a marketable actively traded assets closing price for identical assets. Level 2 investments are determined by using quoted prices for similar assets.

NOTE 4 – CAPITAL ASSETS
A. Capital Assets Summary
Capital asset activity for the years ended June 30, 2023 and 2022 is as follows:

Balance Balance
6/30/2022
(as restated) Additions Retirements Transfers June 30, 2023 Non Depreciable Assets:

Land 14,371,743$ -$ -$ -$ 14,371,743$ Construction In Progress 63,161,131 43,810,104 - (35,708,770) 71,262,465 Total Non Depreciable Assets 77,532,874 43,810,104 - (35,708,770) 85,634,208 Capital assets being depreciated:

Buildings and Improvements 1,065,938,843 - - 35,708,770 1,101,647,613 Right-to-use leased building 2,916,623 - - - 2,916,623 Right-to-use SBITA 1,437,230 1,670,794 - - 3,108,024 Machinery & Equipment 9,941,798 570,680 (214,512) - 10,297,966 Total capital assets being
depreciated
(1)
1,080,234,494 2,241,474 (214,512) 35,708,770 1,117,970,226 Less accumulated depreciation for:

Buildings and Improvements (511,596,415) (25,626,315) - - (537,222,730) Right-to-use leased building (673,067) (673,067) - - (1,346,134) Right-to-use SBITA - (378,485) - - (378,485) Machinery & Equipment (8,720,654) (308,358) 214,512 - (8,814,500) Total accumulated depreciation (520,990,136) (26,986,225) 214,512 - (547,761,849) Net Depreciable Assets
(1)
559,244,358 (24,744,751) - 35,708,770 570,208,377 Enterprise Activity Capital
Assets, Net
(1)
636,777,232$ 19,065,353$ -$ -$ 655,842,585$ (1)
The Statement of Net Position for fiscal year 2021-22 was not restated for implementation of GASB 96, SBITA, discussed in Notes 2B and 5.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 4 – CAPITAL ASSETS (continued)
33 Balance Balance
6/30/2021
(as restated) Additions Retirements Transfers June 30, 2022 Non Depreciable Assets:

Land 14,371,743 $ -$ -$ -$ 14,371,743$ Construction In Progress 99,971,096 54,622,732 - (91,432,697) 63,161,131 Total Non Depreciable Assets 114,342,839 54,622,732 - (91,432,697) 77,532,874 Capital assets being depreciated:

Buildings and Improvements 974,506,146 - - 91,432,697 1,065,938,843 Right-to-use leased building 2,916,623 - - - 2,916,623 Machinery & Equipment 9,698,465 290,871 (47,538) - 9,941,798 Total capital assets being
depreciated 987,121,234 290,871 (47,538) 91,432,697 1,078,797,264 Less accumulated depreciation for:

Buildings and Improvements (488,361,127) (23,235,288) - - (511,596,415) Right-to-use leased building - (673,067) - - (673,067) Machinery & Equipment (8,455,762) (312,430) 47,538 - (8,720,654) Total accumulated depreciation (496,816,889) (24,220,785) 47,538 - (520,990,136) Net Depreciable Assets 490,304,345 (23,929,914) - 91,432,697 557,807,128 Enterprise Activity Capital 604,647,184$ 30,692,818$ -$ -$ 635,340,002$

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 4 – CAPITAL ASSETS (continued)
34 B. C onstruction in Progress
Construction in progress as of June 30, 2023 and 2022 consisted of the following in SVP Projects.

Projects as of June 30 , 2023 Authorized Expended Commitments Replace NRS 115/60KV Transformers 10,035,632$ 3,439,488$ 6,596,144$ Sierra Substation 15,954,547 15,695,343 259,204 Implementation Advanced Meter Infrastructure 28,132,392 27,844,679 287,713 Bucks Creek Relicensing 6,447,846 6,318,577 129,269 Electric Vehicle Charging 3,570,049 1,524,954 2,045,095 San Tomas Junction 5,162,977 1,264,724 3,898,253 Memorex Juction Substation 7,969,006 1,239,162 6,729,844 Freedom Circle Junction Substation 4,025,663 1,029,444 2,996,219 Street Light Improvement 2,884,102 1,015,901 1,868,201 Other Projects 106,544,628 11,890,193 94,654,435 Total 190,726,842$ 71,262,465$ 119,464,377$

Projects as of June 30 , 2022 Authorized Expended Commitments Replace NRS 115/60KV Transformers 9,166,995$ 1,641,462$ 7,525,533$ Sierra Substation 15,969,974 14,618,579 1,351,395 Implementation Advanced Meter Infrastructure 31,502,512 27,641,081 3,861,431 Bucks Creek Relicensing 6,450,261 6,318,577 131,684 Electric Vehicle Charging 2,492,992 1,168,048 1,324,944 San Tomas Junction 5,180,038 931,796 4,248,242 Other Projects 102,044,261 10,841,588 91,202,673 Total 172,807,033$ 63,161,131$ 109,645,902$

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
35 NOTE 5 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS
C
hanges in long-term debt for the year ended June 30, 2023, consisted of the following:

Outstanding Debt Additions and Outstanding
Type of Indebtedness as of June 30, Retired / Amortization as of June 30, Current Rate, Issue Date and Maturity 2022 Defeased of Discounts 2023 Portion Obligation Bonds:
2013 Series A Refunding Revenue Bonds
3%-5%, 04/24/13-07/01/22 4,545,000$ 4,545,000$ - $ -$ - $ 2018 Series A Refunding Revenue Bonds,
5%, 12/18/18 - 07/01/27 35,325,000 5,110,000 - 30,215,000 5,440,000 Unamortized Discount/Premium 3,766,165 - (753,233) 3,012,932 - Subtotal Electric Utility Revenue Bonds 43,636,165 9,655,000 (753,233) 33,227,932 5,440,000 Direct Placement:

Series 2020-1 Revenue Refunding Bonds,

1.74%, 04/10/2020 - 07/01/2032 52,985,000 - - 52,985,000 - Series 2020-2 Revenue Refunding Bonds,

1.31%, 04/10/2020 - 07/01/2028 34,315,000 - - 34,315,000 5,755,000 Series 2020-3 Revenue Refunding Bonds,

0.58% 04/10/2020 - 07/01/2024 11,840,000 3,925,000 - 7,915,000 3,945,000 Subtotal Electric Utility Revenue Bonds 99,140,000 3,925,000 - 95,215,000 9,700,000 Total Electric Utility Activities - Bonds and Notes from Direct
Borrowing 142,776,165$ 13,580,000 $ (753,233)$ 128,442,932$ 15,140,000$

A. Electric Revenue Refunding Bonds, Series 2013A
On April 24, 2013, the City issued $64.380 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 SVP.

As of April 1, 2020, $43.705 million of the Electric 2013A Bonds were outstanding and $30.725 million would be callable at par beginning January 1, 2023. With the passage of the Tax Cuts and Jobs Act on December 22, 2017 eliminated tax-exempt advance refunding of tax-exempt bonds beginning January 1, 2018, and therefore tax-exempt advance refunding is no longer a refinancing option.

On April 10, 2020, SVP refinanced $30.725 million callable portion of the outstanding principal amount of Electric 2013 A Bonds through a direct placement with Bank of America, N.A. under a Taxable to Tax-Exempt Conversion structure. The refunding resulted in overall debt service

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 5 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued)

36 savings of $1,706,384. The net present value of the debt service savings is called an economic g
ain and after an addition for prior funds on hand of $203, amounted to $1,703,470. See Notes below for Subordinated Electric Revenue Refunding Bonds, Series 2020-2.

As of June 30, 2023, SVP has paid off the entire Electric Revenue Refunding Bonds Series 2013A obligation.

B. Electric Revenue Refunding Bonds, Series 2018A
On December 18, 2018, SVP issued $48.8 million of Electric Revenue Refunding Bonds, Series 2018A (Electric 2018A Bonds) to refinance $54.58 million outstanding principal amount of Variable Rate Demand Electric Revenue Refunding Bonds, Series 2008B and terminate a related swap agreement. The Electric 2018A Bonds bear a 5% coupon rate, mature annually beginning on July 1, 2019 through July 1, 2027, and were sold at an All-In True Interest Cost of 2.32%. Debt service on the Electric 2018A Bonds is secured by a pledge of net revenues of SVP.

In the event of default, SVP will transfer to the trustee all adjusted net revenues held by it and received thereafter and the trustee will disburse all adjusted net revenues and any other funds then held or thereafter received by the trustee under the provisions of indenture. In the case of default, the trustee will be entitled to declare the bond obligation of all bonds then outstanding to be due and payable immediately.

C. Subordinate Electric Revenue Refunding Bonds, Series 2020-1 As of April 1, 2020, all $54.830 million of the Electric 2011 A Bonds were outstanding and callable at par beginning July 1, 2021. The passage of the Tax Cuts and Jobs Act on December 22, 2017 eliminated tax-exempt advance refunding of tax-exempt bonds beginning January 1, 2018, and therefore tax-exempt advance refunding is no longer a refinancing option.

The City Council determined that it was in the best interests of the City to enter into a credit facility with a bank for the purpose of refunding all outstanding Electric 2011A Bonds; and for the indebtedness created under such credit facility to be evidenced by a subordinate electric revenue bond to be issued by the City and delivered to the bank as authorized by Resolution No. 20-8834 adopted by the City Council on April 7, 2020.

On April 10, 2020, the City entered into a loan agreement with Bank of America, N.A. (the “Bank”) and issued $52.985 million of Subordinate Electric Revenue Refunding Bonds, Series 2020-1 (Electric 2020-1 Bonds) to refinance $54.830 million outstanding principal amount of Electric Series 2011A Bonds under a Taxable to Tax-Exempt Conversion structure. The Electric 2020-1 Bonds bear 1.74% coupon rates, mature annually beginning on July 1, 2028 through July 1, 2032 and were sold at a true interest cost of 1.43% with an average coupon rate of 1.40%.

Electric 2020-1 Bonds were priced at taxable rates and was converted to tax-exempt on April 2,

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 5 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued)

37 2021. Both the taxable rate and tax-exempt rate after conversion were fixed at time of issuance.

S
tarting April 2, 2021, the Bonds will bear interest at the tax exempt rate of 1.360% per annum.

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 Electric Revenue Bonds, if any.

In the event of default under the loan agreement for the 2020-1 bonds (including a failure by the City to pay principal or interest on the related bonds, a failure by the City to perform or observe its covenants, a default in other specified indebtedness or obligations of the City, certain acts of bankruptcy or insolvency, or other specified events of default), the Bank has the right, upon written notice to the City, to accelerate and declare the City’s obligation to repay the related bonds and all other obligations of the City to the Bank under such loan agreement to be immediately due and payable.

D. Subordinate Electric Revenue Refunding Bonds, Series 2020-2 The City Council determined that it was in the best interests of the City to enter into a credit facility with a bank for the purpose of refunding a portion of the outstanding Electric 2013A Bonds; and for the indebtedness created under such credit facility to be evidenced by a subordinate electric revenue bond to be issued by the City and delivered to the Bank as authorized by Resolution No. 20-8834 adopted by the City Council on April 7, 2020.

On April 10, 2020, the City entered into a loan agreement with Bank of America, N.A. (the “Bank”) and issued $34.315 million of Subordinate Electric Revenue Refunding Bonds, Series 2020-2 (Electric 2020-2 Bonds) to refinance $30.725 million of the callable portion of the outstanding Electric Revenue Refunding Bonds, Series 2013 A under a Taxable to Tax-Exempt Conversion structure. 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 a true interest cost of 1.21% with an average coupon rate of 1.15%. Electric 2020-2 Bonds were priced at taxable rates and will convert to a tax-exempt rate at the earlier of (i) the call date (1/1/2023) or (ii) the reversal of the advance refunding prohibition. Both the taxable rate and tax-exempt rate at conversion were fixed at the time of issuance, and once converted, the Bonds will bear interest at the tax-exempt rate of

1.02% per annum. 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 Electric Revenue Bonds, if any.

In the event of default under the loan agreement for the 2020-2 Bonds (including a failure by the City to pay principal or interest on the related bonds, a failure by the City to perform or observe its covenants, a default in other specified indebtedness or obligations of the City, certain acts of bankruptcy or insolvency, or other specified events of default), the Bank has the right, upon written notice to the City, to accelerate and declare the City’s obligation to repay the related bonds and all other obligations of the City to the Bank under such loan agreement to be immediately due and payable.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 5 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued)

38 E. S ubordinate Electric Revenue Refunding Bonds, Series 2020-3 On June 16, 2014, the City entered into a Tax-Exempt Multiple Draw Term Loan with the Bank of America Preferred Funding Corporation (the “Electric 2014 Loan Agreement”) to fund the phase-shifting transformer project and the acquisition of property for future utility use. The indebtedness created under such credit facility was evidenced by a subordinate electric revenue bond issued by the City - Subordinated Electric Revenue Bond, Series 2014. As of April 1, 2020, $19.413 million principal amount was outstanding and unpaid.

The City Council determined that it was in the best interests of the City to continue the credit facility with the bank for the purpose of refunding of the outstanding Electric 2014 Loan Agreement at lower interest rate; and for the indebtedness created under such credit facility to be evidenced by a subordinate electric revenue bond to be issued by the City and delivered to the Bank as authorized by Resolution No. 20-8834 adopted by the City Council on April 7, 2020.

On April 10, 2020, the City entered into a loan agreement with Bank of America, N.A. (the “Bank” and issued $16.720 million of Subordinate Electric Revenue Refunding Bonds, 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 a true interest 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 Electric Revenue Bonds, if any.

In the event of default under the loan agreement for the 2020-3 bonds (including a failure by the City to pay principal or interest on the related bonds, a failure by the City to perform or observe its covenants, a default in other specified indebtedness or obligations of the City, certain acts of bankruptcy or insolvency, or other specified events of default), the Bank has the right, upon written notice to the City, to accelerate and declare the City’s obligation to repay the related bonds and all other obligations of the City to the Bank under such loan agreement to be immediately due and payable.

F. Pledge of Future Electric Revenues
The pledge of future Electric Fund revenues ends upon repayment of the $125.4 million in outstanding principal on the bonds which is scheduled to occur in fiscal year 2032-33. For fiscal year 2022-23, Electric Fund revenues including operating revenues and non-operating interest earnings amounted to $635.1 million and operating costs including operating expenses, but not interest, depreciation or amortization amounted to $602.4 million. Net revenues available for debt service amounted to $32.7 million which represented a coverage ratio of 2.01 on the $16.3 million of debt service.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 5 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued)

39 G. D erivative Instruments
In fiscal year 2009-10, SVP implemented GAAP, which addresses recognition, measurement and disclosures related to derivative instruments to determine whether they meet the definition of derivative instruments, and if so, whether they effectively hedge the expected cash flows associated with the interest rate and energy exposures. Under hedge accounting, the increase (decrease) in the fair value of a hedge is reported as a deferred cash flow hedge on the statement of net position.

Notional Amounts and Fair Values – Future Derivative Instruments SVP maintains a Market Risk Management Policy, which among other things, sets forth the guidelines for the purchase and sale of certain financial instruments defined as hedge instruments in support of market power purchase and sales transactions. The primary goal of these guidelines is to provide a framework for the operation of an energy price hedging program to better manage SVP’s risk exposure in order to utilize resources, stabilize pricing and costs for the benefit of SVP and its customers.

Consistent with hedge accounting treatment meeting effectiveness tests, changes in fair value are reported as deferred flows of resources on the statement of net position until the contract expiration that occurs in conjunction with the hedged expected energy purchase/sales transaction. When hedging contracts expire, at the time the purchase/sales transactions occur, the deferred balance is recorded as a component of Purchased Power. For energy derivatives, fair values are estimated by comparing contract prices to forward market prices quoted by third party market participants.

SVP had the following future derivative instruments outstanding at June 30, 2023 with Archer Daniels Midland Company to hedge cash flows on sales of excess resources in CAISO market in June and purchase of power from CAISO in the future months.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 5 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 40 Notional Amount (MWh)
Long Short
Eff
ective
Date
Maturity
Date
Average
Price Classification Amount Classification Amount
18,720 6/1/2022 6/30/2023 $54.00 Derivative
Instrument 507,125$ Deferred
inflow 507,125$
20,000 7/1/2022 7/31/2023 95.00 Derivative
Instrument (551,000) Deferred
outflow (551,000)
21,600 8/1/2022 8/31/2023 95.00 Derivative
Instrument 139,320 Deferred
inflow 139,320
20,000 9/1/2022 9/30/2023 95.00 Derivative
Instrument 88,000 Deferred
inflow 88,000
8,600 6/1/2022 7/31/2023 67.75 Derivative
Instrument (110,940) Deferred
inflow (110,940)
7,800 7/1/2022 8/31/2023 67.75 Derivative
Instrument 22,230 Deferred
outflow 22,230
8,000 8/1/2022 9/30/2023 67.75 Derivative
Instrument (5,600) Deferred
inflow (5,600)
89,135$ 89,135$
Notional Amount (MMBtu)
Long Short
Eff
ective
Date
Maturity
Date
Average
Price Classification Amount Classification Amount
3,655,000 7/1/2020 12/31/2025 $2.42 Derivative
Instrument 4,796,510$ Deferred
inflow 4,796,510$
3,655,000 1/1/2021 12/31/2025 0.56 Derivative
Instrument 3,597,425 Deferred
inflow 3,597,425
8,840,000 1/1/2022 12/31/2025 2.64 Derivative
Instrument 8,613,890 Deferred
inflow 8,613,890
8,895,000 1/1/2022 12/31/2025 1.03 Derivative
Instrument 5,693,700 Deferred
inflow 5,693,700
155,000 1/1/2022 8/31/2023 2.70 Derivative
Instrument (116,250) Deferred
inflow (116,250)
22,585,275$ 22,585,275$
Grand Total 22,674,410$ 22,674,410$
Fair Value Change in Fair Value
Fair Value Change in Fair Value
Credit Risk
Credit risk is the risk of loss due to a counterparty defaulting on its obligations. SVP is exposed to credit risk if hedging instruments are in asset positions. To eliminate counterparty credit risk, SVP has transacted both long term power and gas contracts on the Futures market on Intercontinental Exchange (ICE). As of June 30, 2023, SVP’s open derivative power and gas contracts were in an asset position, reflecting a positive $22.7 million Mark-to Market value. 41 CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND (SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 5 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) The open contracts were with ADM Investor Service, Inc., a clearing member of ICE and a subsidiary of Archer Daniels Midland Company who was rated A by Standard & Poor’s as of June 30, 2023.

SVP's policy for requiring collateral on hedging instruments varies based on individual contracts and counterparty credit ratings. Under the brokerage agreements with Archer Daniels Midland Company, the accounts are prefunded by SVP. If the account value falls below zero, margin calls are invoked.

It is also SVP's policy to negotiate netting arrangements whenever it has entered into more than one bilateral transactions with counterparty. Under the terms of these arrangements, should one party become insolvent or otherwise default on its obligations, the non-defaulting party may accelerate and terminate all outstanding transactions and net their fair values so that a single amount will be owed by (or to) the non-defaulting party.

Termination Risk
SVP’s futures contracts are traded over the counter and have no termination risk.

Price Risk
With respect to price risk under power Futures contracts, on purchase contracts (long positions), SVP receives the CAISO NP15 average daily rate at settlement and pays the fixed contracted rate entered into on the trade date; on sales contracts (short positions), SVP pays the CAISO NP15 average daily rate at settlement and receives the fixed contracted rate entered into on the trade date. With respect to price risk under gas Futures contracts, on purchase contracts (long positions), SVP receives PG&E Citygate average daily price at settlement and pays the fixed contracted rate entered into on the trade date; on sales contracts (short positions), SVP pays the PG&E Citygate average daily price at settlement and receives the fixed contracted rate entered into on the trade date. SVP is exposed to risk because the contract prices are different from the settlement prices.

H. Other
Various debt agreements governing SVP’s revenue bonds contain a number of covenants including those that require SVP to maintain and preserve the enterprise in good repair and working order, to maintain certain levels of insurance, and to fix and collect rates, fees, and charges so as to maintain certain debt coverage ratios. SVP is in compliance with these specific covenants and all other material covenants governing the particular revenue bond issues. No event of default as defined in the bond indentures has occurred or was occurring as of the date of this report.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 5 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 42 I. Repayment Requirements
As
of June 30, 2023, the debt service requirements to maturity for SVP’s long-term debt are as follows:

Year Ending
June 30 Principal Interest Total Principal Interest Total 2024 5,440,000$ 1,374,750$ 6,814,750$ 9,700,000$ 1,075,725$ 10,775,725$ 2025 5,795,000 1,093,875 6,888,875 9,665,000 994,377 10,659,377 2026 6,005,000 798,875 6,803,875 5,910,000 923,678 6,833,678 2027 6,320,000 490,750 6,810,750 5,975,000 863,065 6,838,065 2028 6,655,000 166,375 6,821,375 6,050,000 801,737 6,851,737 2029-2033 - - - 57,915,000 1,861,041 59,776,041 30,215,000$ 3,924,625$ 34,139,625$ 95,215,000$ 6,519,623$ $101,734,623 Senior Revenue Bonds
Future Debt Service Requirements
Subordinate Revenue Bonds from
Direct Placement
Long-term Debt
Reconciliation of Long-term Debt:

Principal Outstanding as of June 30, 2023 12 5,430,000$ Unamortized Discount/Premium - Electric Revenue Bonds 3,012,932 Total Long-term Debt 128,442,932$
J. L
ease Liabilities
SVP entered into a five‐year lease agreement as lessee for the use of office space in November 2015 and the lease was extended to October 2026. SVP is required to make monthly principal and interest payments and common area operating expenses with 3% annual escalation. The lease agreement qualifies as other than short-term leases under GASB87 and therefore, has been recorded at the present value of the future minimum lease payment as of the date of June 30, 2021.

The lease liability is measured at a discount rate of 1.10% based on Applicable Federal Rates for real estate as of July 2021.

A summary of the SVP’s lease transactions for the fiscal year ended June 30, 2023 and 2022 are as follows:

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 5 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued)

43 Balance
June 30, 2022 Addition Retirment
Balance
June 30, 2023 Current portion
Lease liabilities 2,286,666$ - $ (654,044)$ 1,632,622$ 681,619$ Balance
June 30, 2021
(As restated) Addition Retirment
Balance
June 30, 2022 Current portion
Lease liabilities 2,916,623$ - $ (629,957)$ 2,286,666$ 654,044$

The future principal and interest lease payments as of June 30, 2023, are as follows:

For the Year
Ending June 30 Principal Interest Total
2024 681,619 $ 14,596 $ 696,215$
2025 710,181 6,920 717,101
2026 240,822 553 241,375
Total 1,632,622 $ 22,069 $ 1,654,691$
K. Subscription-Based IT Arrangements and Liabilities
In fiscal year 2022-23, SVP implemented the provisions of GASB Statement No. 96, Subscription- Based Information Technology Arrangements, which required the City to record an intangible right-to-use subscription asset. As a result, a right-to-use subscription asset was recorded in the amount of $3,108,024. As of June 30, 2023, the City has recorded a net intangible right-to use subscription asset amounting to $2,729,539, with accumulated amortization of $378,485. The subscription assets are offset with subscription liabilities. A summary of the SVP’s SBITA transactions for the fiscal year ended June 30, 2023 are as follows:

Balance
June 30, 2022
(As restated) Addition Retirment
Balance
June 30, 2023 Current portion
SBITA liabilities 1,437,230$ 1,670,794$ (390,015)$ 2,718,009$ 392,381$

On August 20,2022, SVP entered into a five‐year SBITA for the purchases of software services for OASISLive subscription used for California Independent System Operator Congestion Revenue Rights market participation. An initial subscription liability was recorded in the amount of $1,670,794 during fiscal year 2023, at the time the subscription was placed into service.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 5 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued)

44 As of June 30, 2023, the value of the subscription liability was $2,718,009. The City is required to m
ake annual principal and interest payments throughout the life of the subscription. The subscription has an interest rate of 2.85%.

The future principal and interest SBITA payments as of June 30, 2023, are as follows:

For the Year
Ending June 30 Principal Interest Total
2024 392,381 $ 78,573 $ 470,954
2025 406,699 67,322 474,021
2026 421,745 55,433 477,178
2027 437,181 43,251 480,432
2028 453,148 30,634 483,782
2029-2033 606,855 35,448 642,303
Total 2,718,009 $ 310,661 $ 3,028,670$

NOTE 6 – PARTICIPATION IN JOINT VENTURES
A. Investment in Joint Ventures
SVP (through the City) participates in significant joint ventures: Northern California Power Agency (NCPA), Transmission Agency of Northern California (TANC), M-S-R Public Power Agency (MSR PPA), M-S-R Energy Authority (MSR EA).

The separately issued financial statements of these joint ventures (as noted below) are available on request.

Date of latest audited
financial statement Joint venture’s address
NCPA 6/30/2022 651 Commerce Dr. Roseville, CA 95678
TANC 6/30/2022 P.O. Box 15129 Sacramento, CA 95851
MSR EA 12/31/2022 P.O. Box 4060 Modesto, CA 95352
MSR PPA 12/31/2022 P.O. Box 4060 Modesto, CA 95352

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 6 – PARTICIPATION IN JOINT VENTURES (continued)

45 As described in paragraph (E) below, the carrying value of SVP’s investment in MSR EA is $0.

S
VP’s financial statements as of June 30, 2023 and 2022 reflect the following investments in joint ventures:

Participating
percentage Investment
Participating
percentage Investment
Method of
accounting
NCPA $44,467,652 $43,222,597
Geothermal 44.39% 44.39% Equity
Hydroelectric 37.02% 37.02%
Combustion Turbine 41.67% 41.67%
Lodi Energy Center 25.75% 25.75%
TANC 9.65% 7,631,453 9.64% 6,185,241 Equity MSR EA 33.40% - 33.40% - Suspended MSR PPA 35.00% 13,745,836 35.00% 7,904,404.00 Equity *
Total $65,844,941 $57,312,242
*
June 30, 2023 June 30, 2022
The equity method of accounting for investment in MSR PPA was suspended prior to fiscal year ended June 30, 2021. Starting in fiscal year 2022, equity method was used for SVP's investment with MSR PPA.

B. Northern California Power Agency (NCPA)
NCPA was formed in 1968 as a joint powers agency in the State of California. Its membership consists of sixteen public agencies. NCPA is generally empowered to sell, purchase, generate, transmit, manage electrical energy and provide regulatory and legislative advocacy. Members participate in the projects of NCPA on an elective basis. Therefore, the participation percentage varies for each project in which it participates.

A Commission comprised of one representative from each joint venture member governs NCPA.

The Commission is responsible for the general management of the affairs, property, and business of NCPA. Under the direction of the General Manager, the staff of NCPA is responsible for providing various administrative, operating and planning services for NCPA and its associated power corporations.

Project Financing and Construction
NCPA’s project construction and development programs have been individually financed by project revenue bonds collateralized by NCPA’s assignment of all payments, revenues and proceeds associated with its interest in each project. Each project participant has agreed to pay its proportionate share of debt service and other costs of the related project, notwithstanding the suspension, interruption, interference, reduction or curtailment of output from the project for any

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 6 – PARTICIPATION IN JOINT VENTURES (continued)

46 reason. Certain of the revenue bonds are additionally supported by municipal bond insurance c
redit enhancements.

Hydroelectric Project
NCPA contracted to finance, manage, construct, and operate Hydroelectric Project Number One for the licensed owner, Calaveras County Water District (CCWD). In exchange, NCPA has the right to the electric output of the project for 50 years from February 1982. NCPA also has an option to purchase power from the project in excess of the CCWD’s requirements for the subsequent 50 years, subject to regulatory approval.

Geothermal Project
The NCPA Geothermal Plants have historically experienced greater than anticipated declines in steam production from the existing geothermal wells. Although initially operated as baseload generation projects at full capability (238MW), NCPA changed its steam field production from baseload to load-following and reduced average annual steam production. Along with other steam field operators in the area, the Agency began implementing various operating strategies to further reduce the rate of decline in steam production. The Agency has modified both steam turbine units and the associated steam collection system to enable generation with lower pressure steam at higher mass-flow rates to optimize the utilization of the available steam resource. In FY 19-20, NCPA began a well-workover program to restore underperforming wells.

Based upon current operation protocols and forecasted operations, NCPA expects average annual generation and peak capacity to decrease further, reaching approximately 68 MW by the year 2040.

Combustion Turbine Project No. 1
NCPA owns five dual (natural gas and fuel oil) combustion turbine units, each of which is nominally rated at 25 MW, which are collectively known as the Combustion Turbine Project No.

1. These units were completed in 1986 and are designed to provide peak power and reserve requirements and emergency support. Each purchaser is responsible under its power sales contract for paying entitlement share in Combustion Turbine Project No. 1 of all NCPA’s costs of such project.

Lodi Energy Center
On May 24, 2010, SVP entered into an agreement with NCPA for a 25.75% interest in the Lodi Energy Center, a 280 MW combined cycle natural gas fired power plant, located in Lodi, California. The project received approval from the California Energy Commission in April 2010 and was placed into operation in November 2012. In January 2020, the Lodi Energy Center suffered a catastrophic turbine failure. NCPA replaced the turbine with a newer state-of-the-art

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 6 – PARTICIPATION IN JOINT VENTURES (continued)

47 turbine which could use hydrogen as a cleaner fuel source. The majority of the replacement cost w
as covered by NCPA’s insurance resulting in relatively minimal financial impact to project participants.

C. Transmission Agency of Northern California (TANC)
TANC was organized under the California Government Code pursuant to a joint powers agreement entered into by 15 Northern California utilities. The purpose of TANC is to provide electric transmission and other facilities for the use of its members through its authority to plan, acquire, construct, finance, operate and maintain facilities for electric power transmission. The joint powers agreement provides that the costs of TANC’s activities can be financed or recovered through assessment of its members or from user charges through transmission contracts with its members. Each TANC member has agreed to pay a pro-rata share of the costs to operate TANC and for payment of debt service, and has the right to participate in future project agreements.

The joint powers agreement remains in effect until all debt obligations and interest thereon have been paid, unless otherwise extended by the members.

California-Oregon Transmission Project
TANC is a participant and also the Project Manager of the California-Oregon Transmission Project (Project), a 340 mile long, 500 kilovolt alternating current transmission project between Southern Oregon and Central California. As Project Manager, TANC is responsible for the overall direction and coordination of all Project operations and maintenance, additions and betterments, and for general and administrative support.

The Project was declared commercially operable on March 24, 1993, with a rated transfer capability of 1,600 megawatts and provides a third transmission path between the electric systems of the Pacific Northwest and those in California. The Project has successfully met and completed all major environmental requirements. As of June 30, 2022, the most recent data available, TANC’s investment in the Project was $549.7 million, less accumulated depreciation and amortization of $297.0 million.

In connection with its participation in the Project, TANC has an entitlement balance of the Project’s transfer capability of approximately 1,362 megawatts and is obligated to pay an average of approximately 80 percent of the operating costs associated with the Project. TANC incurred and initially capitalized all costs for project construction since they were expected to be recovered through reimbursement from Project participants and from the successful operations of the Project transmission lines. The Project agreement among the participating members provides that each member agrees to make payments, from its revenues, to TANC for project costs incurred and for payment of debt service.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 6 – PARTICIPATION IN JOINT VENTURES (continued)

48 SVP has historically been obligated to pay 20.47% of TANC’s COTP operating and maintenance e
xpenses and 20.70% of TANC’s COTP debt service and 22.16% of the Vernon acquisition debt.

SVP has also been entitled to 20.4745% of TANC’s share of COTP transfer capability (approximately 278 MW net of third party layoffs of TANC) on an unconditional take-or-pay basis. Starting on July 1, 2014, SVP laid-off 147 MWs of this entitlement to other TANC members under a 25 year agreement. During the term of this agreement the parties taking on the entitlement will pay all associated debt service, operations and maintenance costs, and all administrative and general costs. SVP’s portion of the operating and maintenance expenses and the COTP debt service is 10.004 %.

D. M-S-R Public Power Agency (MSR PPA)
MSR PPA is a joint power agency formed in 1980 by the Modesto Irrigation District, the City of Santa Clara, and the City of Redding, California, to develop or acquire and manage electric power resources for the benefit of the members. The personnel of its members and contract professional staff perform the administrative and management functions of MSR PPA. The member’s income and expenses sharing ratio is as follows: Modesto Irrigation District – 50 percent, City of Santa Clara – 35 percent, and City of Redding – 15 percent.

Prior to fiscal year ended December 31, 2020, SVP’s equity in MSR PPA’s net losses exceeds its investments and, therefore, the equity method of accounting for the investment was suspended.

Starting in fiscal year ended December 31,2021, SVP was in a positive equity position. The equity method of accounting of SVP’s investment in MSR PPA was applied. Under the joint exercise of power agreement, which formed MSR PPA, SVP is responsible for funding up to 35 percent of MSR PPA’s operating cost, to the extent such funding is necessary. During the years ended June 30, 2023 and 2022, SVP funded its share of operating costs in SVP’s expenses.

MSR PPA’s principal activity is a 28.8% ownership interest in a 507-megawatt unit of a coal-fired electricity generating plant located in New Mexico (San Juan Plant). The San Juan plant was jointly owned by the Public Service Company of New Mexico (PNM) (38.5%), MSR PPA (28.8%) and other municipal power entities (32.7%). On December 31, 2017, MSR PPA divested its ownership interest in the San Juan plant and no longer receives electric energy or capacity from the San Juan Generating Station.

In 2006, MSR PPA entered into a Wholesale Purchase and Sale Agreement and a Shaping and Firming Agreement with Avangrid Renewables, Inc. to provide renewable wind energy to the Members from the Big Horn I Wind Energy Project (Big Horn I Project) with a nominal installed capacity of approximately 199.5 MW. SVP receives the power purchased by MSR PPA from the Big Horn I Project. SVP’s share equates to approximately a 105 MW share of the output. Power deliveries commenced on October 1, 2006 and will continue through September 30, 2026. Through an amendment of the original agreements MSR PPA has an obligation to continue to take the same

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 6 – PARTICIPATION IN JOINT VENTURES (continued)

49 output through September 30, 2031, or if the Big Horn Project is repowered MSR PPA will have a
right of first offer to negotiate a long-term power purchase for such repowered project. The participation in this project is as follows:

Modesto Irrigation District 12.5%
City of Santa Clara 52.5%
City of Redding 35.0%
In 2009, MSR PPA entered into a Power Purchase Agreement and Redelivery Agreement with Avangrid Renewables Inc. to purchase additional wind power energy from the same site, called Big Horn II, with a nominal installed capacity of 50 MW for a twenty-year period. Deliveries of energy under this project began on November 1, 2010. The participation in this project is as follows: Modesto Irrigation District – 65%; City of Santa Clara – 35%.

MSR PPA San Juan
In 2015, the MSR PPA Commission approved a number of agreements (the “San Juan Restructuring Agreements”) to provide for the interests of MSR PPA and certain other San Juan Participants (the “exiting participants”) in the San Juan Generation Station to be transferred to the remaining San Juan Participants effective December 31, 2017. In addition to the ownership divesture, the San Juan Restructuring Agreements provide for, among other things, the allocation of ongoing responsibility for decommissioning costs, mine reclamation costs and any environmental remediation obligations among the exiting participants and the remaining San Juan Participants, and the establishment and funding of mine reclamation and plant decommissioning trust funds. The San Juan Restructuring Agreements were subsequently executed by all nine San Juan Generation Station owners and PNM Resources Development Company (a non-utility affiliate of PNM) and, following receipt of regulatory approvals, became effective on January 31, 2016. Various other implementing agreements and amendments to existing San Juan project agreements to effect the restructuring have also been executed. Closing of the ownership restructuring of the San Juan Generation Station and the divestiture of M-S-R PPA’s interests in San Juan Unit No. 4 was completed on schedule on December 31, 2017.

E. M-S-R Energy Authority (MSR EA)
MSR EA is a joint power agency formed in 2008 by the Modesto Irrigation District, the City of Santa Clara, and the City of Redding, California, to develop or acquire and manage natural gas resources for the benefit of the members. The personnel of its members and contract professional staff perform the administrative and management functions of MSR EA. Each member’s income and expense sharing ratio is as follows: Modesto Irrigation District – 33.3%; City of Santa Clara – 33.4%; and City of Redding – 33.3%.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 6 – PARTICIPATION IN JOINT VENTURES (continued)

50 SVP’s equity in MSR EA’s net losses exceeds its investment and, therefore, the equity method of a
ccounting for the investment has been suspended. As of December 31, 2022, the date of the latest available audited financial statements, SVP’s unrecognized share of member’s deficit of MSR EA was $27.2 million. Under the joint exercise of power agreement, which formed MSR EA, SVP is responsible for funding up to 33.4% of MSR EA’s operating cost, to the extent such funding is necessary. During the years ended June 30, 2023 and 2022, SVP funded its share of operating costs in SVP’s expenses.

In 2009, the City of Santa Clara, along with the Cities of Modesto and Redding participated in the M-S-R Energy Authority Gas Prepay Project. The Gas Prepay Project provides the City, through a Gas Supply Agreement with MSR EA dated September 10, 2009, a secure and long-term supply of natural gas of 7,500 MM Btu (Million British thermal unit) daily or 2,730,500 MM Btu annually through December 31, 2012, and 12,500 MM Btu daily, or 4,562,500 MM Btu annually thereafter until September 30, 2039. The agreement provides this supply at a discounted price below the spot market price (the Pacific Gas & Electric City gate index) over the next 30 years. As of December 31, 2022, bonds issued by MSR EA to finance the City’s share of the Gas Prepay Project were outstanding in the principal amount of $500,200,000. These bonds were initially sold on August 27, 2009. Under the Gas Supply Agreement, MSR EA will bill the City for actual quantities of natural gas delivered each month on a “take-and-pay” basis. MSR EA has contracted with Citigroup Energy, Inc. (“CEI”) to use the proceeds of the Gas Prepay bond issue to prepay CEI for natural gas. CEI has guaranteed repayment of the bonds, and responsibility for bond repayment is non-recourse to the City. Moreover, any default by the other Gas Prepay Project participants is also non-recourse to the City.

F. Contingent Liability
Under the terms of the various joint venture agreements, SVP is contingently liable for a portion of the long-term debt of the entities under take-or-pay agreements, letters of credit, guarantees or other similar agreements.

Based on the most recent audited financial statements of the individual joint ventures, SVP was contingently liable for long-term debt as of June 30, 2022 as follows:

Total Debt Silicon Valley Power's Silicon Valley Power's Agreements (Principal) Debt Share Contingent Liability
NCPA 06/30/22 547,665,968$ 34.84% 190,813,080$
TANC 06/30/22 167,800,000 9.65% 16,194,663
TOTAL 715,465,968$ 207,007,743$

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
NOTE 6 – PARTICIPATION IN JOINT VENTURES (continued)

51 In addition, SVP would be, under certain conditions, liable to pay a portion of costs associated w
ith the operations of the entities. Under certain circumstances, such as default or bankruptcy of the other participants, SVP may also be liable to pay a portion of the debt of these joint ventures on behalf of those participants and seek reimbursement from those participants.

Take-or-Pay commitments expire upon final maturity of outstanding debt for each project. Final fiscal year debt expirations as of June 30, 2022 are as follows:

Entitlement Debt Service
Project Debt Expiration Share % Share %
NCPA - Geothermal Project (NGP) July-2024 44.3905% 44.3905% NCPA - Hydroelectric Project (NHP) July-2032 37.0200% 37.0200% NCPA - Lodi Energy Center (NLEC)** June-2040 25.7500% 34.5385% TANC - CA-OR Transmission Project (COTP) May-2039 9.6514% 9.6512% MSR PPA -San Juan Plant July-2022 35.0000% 35.0000%
** The SVP's debt service share in NLEC on issue one is 46.1588%, on issue two is 0%.

A summary of SVP’s “Take-or-Pay” contracts and related projects and its contingent liability for the debt service including principal and interest payments at June 30, 2022 is as follows:

Fiscal Year NGP NHP NLEC COTP Total
2023 2,198,863$ 12,870,163 $ 7,567,678$ 1,008,307$ 23,645,011$ 2024 1,541,819 14,375,558 7,565,130 1,348,027 24,830,534 2025 1,545,765 14,399,154 7,565,513 1,465,120 24,975,552 2026 - 7,912,261 7,581,031 1,464,903 16,958,195 2027-2031 - 39,516,428 38,615,584 7,324,369 85,456,381 2032-2036 - 17,218,945 38,621,715 7,324,877 63,165,537 2037-2041 - - 37,973,144 4,394,758 42,367,902 Total 5,286,447$ 106,292,509$ 145,489,795$ 24,330,361$ 281,399,112$

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS

For the years ended June 30, 2023 and 2022
52 NOTE 7 – RETIREMENT PLAN – DEFINED BENEFIT PENSION PLAN F
or purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

A. General Information about the Pension Plan
Plan Descriptions
All qualified regular and probationary employees are required to participate in the City’s Miscellaneous Agent Multiple-Employer defined benefit plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues a publicly available report that include a full description of the pension plan regarding benefit provisions, assumptions and membership information and can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members, who must be public employees or beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The pre-retirement death benefit is the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 7 – RETIREMENT PLAN – DEFINED BENEFIT PENSION PLAN (continued) 53 The Plan’s provisions and benefits in effect at June 30, 2023 and June 30, 2022, are summarized as
follows:

Miscellaneous
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 52 - 67
Monthly benefits, as a % of eligible compensation 2.00 - 2.70% 1.00 - 2.50% Required employee contribution rates 8.00% 6.50%
Required employer contribution rates 11.160% 11.160%
June 30, 2023 June 30, 2022
Required unfunded liability contribution $8,696,424 $7,938,737 Con
tributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. SVP is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

The contributions to the Plan were as follows:

June 30, 2023 June 30, 2022
Contributions - employer $11,321,067 $11,026,399
Miscellaneous

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 7 – RETIREMENT PLAN – DEFINED BENEFIT PENSION PLAN (continued) 54 B. Net Pension Liability, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
SVP reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:

June 30, 2023 June 30, 2022
Miscellaneous 105,823,291$ 73,533,480$
Proportionate Share of Net Pension Liability
SVP
’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. SVP’s proportion of the net pension liability was based on a projection of SVP’s long-term share of contributions to the pension plan relative to the projected contributions of all funds of the City. SVP’s proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2022 was 32.31%.

For the years ended June 30, 2023 and 2022, SVP recognized pension expense of $12,887,264 and $6,364,608 respectively. At June 30, 2023 and 2022, SVP reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Plan:

Deferred Outflows Deferred Inflows
June 30, 2023 of Resources of Resources
Pension contributions subsequent to measurement date 11,321,067$ -$ Differences between expected and actual experience 602,798 (821,311) Changes in assumptions 5,541,520 -
Net differences between projected and actual earnings
on plan investments 8,757,655 -
Total 26,223,040$ (821,311)$

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 7 – RETIREMENT PLAN – DEFINED BENEFIT PENSION PLAN (continued) 55 Deferred Outflows Deferred Inflows
June 30, 2022 of Resources of Resources
Pension contributions subsequent to measurement date 11,026,399$ -$ Differences between expected and actual experience 1,994,978 - Net differences between projected and actual earnings
on plan investments - (18,343,263)
Total 13,021,377$ (18,343,263)$
$11
,878,371 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Measurement Period Annual Measurement Period Annual
Ended June 30 Amortization Ended June 30 Amortization
2023 3,868,013 $ 2022 (3,284,375)$
2024 3,237,809 2023 (3,704,830)
2025 1,368,749 2024 (4,335,036)
2026 5,606,091 2025 (5,024,044)
2023 2022
C. A
ctuarial Assumptions
For the measurement period ended June 30, 2022, the total pension liability was determined by rolling forward the June 30, 2021 total pension liability. The June 30, 2021 total pension liability was based on the following actuarial methods and assumptions:

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 7 – RETIREMENT PLAN – DEFINED BENEFIT PENSION PLAN (continued) 56 Miscellaneous
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase Varies by Entry-Age and Service Investment Rate of Return 7.00%
(1)
Post Retirement Benefit Increase The lesser of Contract COLA or 2.3% until Purchasing Power Protection applies, 2.3%
thereafter
Mortality
(2) Derived using CalPERS' Membership Data
fo
r all Funds
(1)
Net of pension plan investment and administrative ex penses; including inflation. (2)
The probabilities of mortality are based on the 2021 CalPERS Experience Study for th
e period from 2001 to 2019. Pre-retirement and post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS' November 2021 experience study report available on CalPERS' website.

The
underlying mortality assumptions and all other actual assumptions used in the June 30, 2021 valuation were based on the results of a December 2021 actuarial experience study for the period 2000 to 2019. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate
The discount rate used to measure the total pension liability for the Plan was 6.97%. The projection of cash flows used to determine the discount rate for the Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members for all plans in the PERF. Therefore, the long-term expected rate of return on plan investments was applied to all period of projected benefit payments to determine the total pension liability for the Plan.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 7 – RETIREMENT PLAN – DEFINED BENEFIT PENSION PLAN (continued) 57 The long-term expected rate of return on pension plan investments was determined using a bu
ilding-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ assets classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The table below reflects the long-term expected real rate of return by asset class.

Asset Class
(a)
Assumed Asset
Al
location Real Return
(a)(b)
Global Equity - Cap-weighted 30 .0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
100.0%
(b) Figures are based on the 2021 Asset Liability Management Study. (a) An expected inflation of 2.30% used ofr this period.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 7 – RETIREMENT PLAN – DEFINED BENEFIT PENSION PLAN (continued) 58 Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents SVP’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what SVP’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

June 30, 2023 June 30, 2022
1% Decrease 5.90% 6.15%
Net Pension Liability 141,406,186$ 106,409,645$
Current Discount Rate 6.90% 7.15%
Net Pension Liability 105,823,291$ 73,533,480$
1% Increase 7.90% 8.15%
Net Pension Liability 76,286,918$ 46,131,125$
Miscellaneous
Pen
sion Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial report.

D. Subsequent Events
On July 12,2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of .20% from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction of administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 7 – RETIREMENT PLAN – DEFINED BENEFIT PENSION PLAN (continued) 59 also recommended modifications to retirement rates, termination rates, mortality rates and rates of sa
lary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

NOTE 8 – OTHER POST EMPLOYMENT BENEFITS
A. Plan Description
The City’s agent multiple-employer defined benefit Other Post Employment Benefit (OPEB) Plan, which was established by City Council in fiscal year 2007-08 in accordance with GAAP, provides reimbursements to retirees for qualified expenses. Employees who have retired from the City with at least ten years of service and meet certain criterion based upon retirement date, household income in the most recent calendar year and age are entitled to reimbursements for qualified expenses. Annual maximum reimbursement amounts differ depending on when an employee retired from City service. The majority of retirees may be eligible for a maximum of annual reimbursements of $4,788 in the fiscal year 2022-23 and $4,626 in the fiscal year 2021-22.

Amendments to benefit provisions are negotiated by the various bargaining units at the City and must be approved by Council. In fiscal year 2007-08, the City established an irrevocable exclusive agent multiple-employer defined benefit trust which is administered by Public Agency Retirement Services (PARS). The City is the Plan administrator, and PARS administers the investment trust for the City’s Plan. The trust is used to accumulate and invest assets necessary to reimburse retirees. Separate financial reports are issued by PARS for the OPEB Plan Trust. The report can be obtained by writing to PARS at 4350 Von Karman Avenue, Suite 100, Newport Beach, CA 92660, or by calling 1-800-540-6369.

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the OPEB plan and additions to and deduction from the OPEB’s fiduciary net position have been determined on the same bases. For this purpose OPEB benefit payments are recognized when currently due and payable in accordance with the benefits terms. Investments are report at fair value.

Generally accepted accounting principles require that the reporting results must pertain to liability and asset information within certain defined timeframes. For the fiscal year 2022-23 and the fiscal year 2021-22, the following time frames were used.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 8 – OTHER POST EMPLOYMENT BENEFITS (continued)
60 Fiscal year 2022-23
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
Actuarial valuation date
(1)
June 30, 2022
Fi
scal year 2021-22
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
Actuarial valuation date
(1)
June 30, 2020
(1) Update procedures were used to roll forward the Total OPEB Liability from the valuation date to the measurement date.

B. C
ontributions
The OPEB Plan trust annual contributions are based upon actuarial determine contributions. The contribution requirements are established and may be amended by the City Council. Plan members do not make contributions to the plan; the plan is funded entirely by employer contributions. For the fiscal year ending June 30, 2023 and June 30, 2022, SVP contributed $758 thousand and $635 thousand.

C. Actuarial Assumptions
The June 30, 2023 total OPEB liability was based on the following actuarial methods and assumptions:

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 8 – OTHER POST EMPLOYMENT BENEFITS (continued)
61 Significant Actuarial Assumptions Used in Total OPEB Liability Actuarial Assumption June 30, 2023 Measurement Date
Actuarial valuation date June 30, 2022
Discount rate 4.50% at June 30, 2023Crossover analysis showed benefit payments always fully funded by plan assets
Inflation 2.50%
Salary increases Aggregate 2.75%
Investment rate of return 4.75% at June 30, 2022
Funding policy Full pre-funding to PARS trust, PARS portfolio: Moderately Conservative Mortality, Disability,
Termination, and Retirement
CalPERS 2000-2019 Experience Study
Mortality Improvement Mortality projected fully generational with Scale MP-2021 Healthcare cost trend rates Non-Medicare - 8.5% for 2023 scaling down to 3.45% for year 2076 Medicare(Non-Kaiser) - 7.5% for 2023 scaling down to 3.45% for year 2076 Medicare(Kaiser) - 6.25% for 2022 scaling down to 3.45% for year 2076 Healthcare participation for future
retirees - Cash subsidy
PEMHCA minimum only: Currently covered: 50% Waived: 25% Other plans: Currently covered: 80% Waived: 25%
Healthcare participation for future
retirees - PEMHCA implied
subsidy
PEMHCA minimum only: Currently covered: 50% Waived: 25% Other plans: Currently covered: 80% Waived: 25%
The
June 30, 2022 total OPEB liability was based on the following actuarial methods and assumptions:

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 8 – OTHER POST EMPLOYMENT BENEFITS (continued)
62 Significant Actuarial Assumptions Used in Total OPEB Liability Actuarial Assumption June 30, 2022 Measurement Date
Actuarial valuation date June 30, 2020
Discount rate 4.75% at June 30, 2022
Crossover analysis showed benefit payments always fully funded by plan assets
Inflation 2.75%
Salary increases Aggregate 3%
Investment rate of return 5.25% at June 30, 2020
Funding policy Full pre-funding to PARS trust, PARS portfolio: Moderately Conservative Mortality, Disability,
Termination, and Retirement
CalPERS 1997-2015 Experience Study
Mortality Improvement Mortality projected fully generational with Scale MP-2020 Healthcare cost trend rates Non-Medicare - 7% for 2022 scaling down to 4.0% for year 2076 Medicare(Non-Kaiser) - 6.1% for 2022 scaling down to 4.0% for year 2076 Medicare(Kaiser) - 5% for 2022 scaling down to 4.0% for year 2076 Healthcare participation for future
retirees - Cash subsidy
Currently covered: 80%
Waived: 40%
Healthcare participation for future
retirees - PEMHCA implied
subsidy
Currently covered: 80%
Waived: 25%
D. N
et OPEB Liability, OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB
SVP’s net OPEB liability for the Plan is measured as the proportionate share of the City’s net OPEB liability as of June 30. The total OPEB liability for the Plan used to calculate the net OPEB liability for the fiscal year 2022-23 was determined by an actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023 using standard actuarial methods, based on actuarial methods and assumptions. The total OPEB liability for the Plan used to calculate the net OPEB liability for the fiscal year 2021-22 was determined by an actuarial valuation as of June 30, 2020, rolled forward to June 30, 2022 using standard actuarial methods, based on actuarial methods and assumptions.

SVP’s proportion of the net OPEB liability was based on a projection of SVP’s long-term share of contributions to the OPEB plan relative to the projected contributions of all funds of the City.

SVP’s proportionate share of the net OPEB liability for the Plan as of June 30, 2023 and 2022 was

19.32% and 32.31%.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 8 – OTHER POST EMPLOYMENT BENEFITS (continued)
63 For the year ended June 30, 2023, SVP reported a net OPEB liability of $7,289 thousand and re
cognized OPEB expense of $686 thousand. For the year ended June 30, 2022, SVP reported a net OPEB liability of $13,058 thousand and recognized OPEB expense of $753 thousand. At June 30, 2023 and 2022, SVP reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources (in thousands):

June 30, 2023
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Changes of assumptions 173$ 341$
Differences between expected and actual experience - 361 Net differences between projected and actual earnings
on OPEB plan investments 443 -
Total 616$ 702$
June 30, 2022
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Changes of assumptions 377$ 669$
Differences between expected and actual experience - 260 Net differences between projected and actual earnings
on OPEB plan investments 840 -
Total 1,217$ 929$
Oth
er amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Annual Annual
Measurement Period Amortization Measurement Period Amortization Ended June 30 (in thousands) Ended June 30 (in thousands) 2024 (147)$ 2023 (157)$
2025 47 2024 (135)
2026 156 2025 189
2027 (54) 2026 371
2028 (76) 2027 21
Thereafter (8) Thereafter -
2023 2022

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 8 – OTHER POST EMPLOYMENT BENEFITS (continued)
64 E. Discount Rate
The
discount rate used to measure the total OPEB liability was 4.50% as of June 30, 2023 and

4.75% as of June 30, 2022. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rate equal to the actuarially determined contributions rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.

Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
Gloabal Equity 30% 4.56%
Mutual Funds - Fixed Income 65% 0.78%
Cash and equivalent 5% -0.50%
100%
Expected Inflation 2.50%
Discount Rate 4.50%
2023
Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
Mutual Funds - Equity 29% 4.82%
Mutual Funds - Fixed Income 65% 1.47%
REITS 1% 3.76%
Cash and equivalent 5% 0.06%
100%
Expected Inflation 2.75%
Discount Rate 4.75%
2022
F. S
ensitivity of the Net OPEB Liability to Changes in the Discount Rate The following table presents the net OPEB liability of the Plan as of June 30 as well as what the plan’s net OPEB liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher than the current rate.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 8 – OTHER POST EMPLOYMENT BENEFITS (continued)
65 June 30, 2023
(In Thousands)
June 30, 2022
(In Thousands)
1% Decrease 3.50% 3.75%
Net OPEB Liability 8,951$ 15,941$
Current Discount Rate 4.50% 4.75%
Net OPEB Liability 7,289$ 13,058$
1% Increase 5.50% 5.75%
Net OPEB Liability 5,910$ 10,688$
G. S
ensitivity of the Net OPEB Liability to Healthcare Cost Trend Rates The following table presents the net OPEB liability of the City, as of June 30, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% point lower or 1% point higher than the current rate.

June 30, 2023
(In Thousands)
June 30, 2022
(In Thousands)
Net OPEB Liability
1% Decrease $5,637 $10,046
Net OPEB Liability
Current Rate $7,289 $13,058
Net OPEB Liability
1% Increase $9,330 $16,821
NOT
E 9 – WHOLESALE ACTIVITIES
A. Long-term Power Purchase Contracts
SVP purchases wholesale electric power from various participants of the Western Systems Power Pool (WSPP), NCPA, MSR Public Power Agency (Note 6), Western Area Power Administration, and other sources to supply the power requirements of Silicon Valley Power’s electric utility customers under long-term power purchase agreements (PPAs). SVP actively manages the financial risks inherent in these PPAs, including the risks arising from the changing spot market

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 9 – WHOLESALE ACTIVITIES (continued)
66 prices that move above and below the contract prices and from contract disputes that may arise fr
om time to time. The proceeds and costs related to generation, either owned or under PPAs, except ancillary services are included in purchased resource expense and excluded from wholesale resources purchases.

B. Restructuring of the California Electric Industry
Deregulation Legislation and Direct Access
The passage of AB1890 in 1998 triggered fundamental changes in the structure of the electric industry in California. Generally, AB1890 provided for creation of the California Power Exchange (Cal PX), which was to be a clearinghouse for energy transactions among investor-owned utilities, independent generators and power marketers, who in turn would serve so called direct-access customers. AB1890 also created the California Independent System Operator (CAISO), which was to manage the state’s bulk transmission grid.

However, in 2000 and 2001, the price of electricity at the Cal PX became extremely high, and investor-owned utilities were unable to pay for the energy that they needed from the Cal PX.

Eventually the Cal PX filed for bankruptcy and was dismantled. Investor-owned utility PG&E and several energy marketers would also file for bankruptcy and over a decade of litigation ensued.

The CAISO, however, continues to manage the state’s bulk electric system and the day-ahead and day-of markets, and it has implemented various price controls and tariffs in an effort to avoid repeating the mistakes of 2000 and 2001. Along with balancing control area responsibility, the CAISO has also announced that it will take on the role of reliability coordinator for the region.

Energy Wholesale Trading and Risk Management
SVP participates in the wholesale gas and power market and the CAISO’s centralized market.

Since CAISO’s Market Redesign and Technology Upgrade (MRTU), CAISO has become the ultimate buyer and seller in the California day ahead market. Therefore, SVP engages in the trading of commodity forward contracts (gas and electric energy contracts) to secure fuel supply and hedge daily power purchase/sales from/to CAISO. The primary type of forward contracts SVP currently engages in is the futures contracts SVP transacts on Intercontinental Exchange (ICE).

Activities during the fiscal year were substantially considered hedging transactions and, as such, have been accounted for using the settlement method of accounting. In the past, the gains recognized from futures transactions in natural gas and power were reported as negative expenses in the purchased resource. In fiscal year 2022-23, the gains recognized from futures transactions in natural gas and power are reported as revenues in the wholesale resource sales. This change has been applied retroactively to the comparative financial statement for the fiscal year 2021-22.

Consequently, there is a $14,018,411 increase in both wholesale resource sales and purchased

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 9 – WHOLESALE ACTIVITIES (continued)
67 resource expenses for that fiscal year. Accordingly, wholesale resources gross sales and purchases to
taling $85.0 million and $19.5 million, respectively, for fiscal year ended June 30, 2023, wholesale resources gross sales and purchases totaling $50.0 million and $18.4 million, respectively, for fiscal year ended June 30, 2022, have been separately reported on the statement of revenues, expenses and changes in net position.

The restructured electric wholesale market exposes SVP to various risks including market, credit and operational risks. Active and effective management of these risks associated with the power trading activity is critical to its continued success and contribution to the entire utility. A Risk Management Committee administers and monitors compliance with the Council approved risk policies and the related procedures on a regular basis. The City and SVP believe that it has the resource commitment, effective policies and procedures, and is continuing to improve the control structure and oversight for evaluating and managing the market and credit risks to which it is exposed.

Credit Arrangements
SVP has risk policies, regulations, and procedures that help mitigate credit risk and minimize overall credit risk exposure. The policies include transacting only with investment grade counterparties, evaluating of potential counterparties’ financial condition and assigning credit limits as applicable. These credit limits are established based on risk and return considerations under terms customarily available in the industry. For counterparties below investment grade or lack of solid financial records, SVP requires collateral in the form of parental guarantee, surety bonds, letter of credit, or cash prepayment. Additionally, The City is a signatory to the WSPP netting agreement supplement and otherwise, enters into master netting arrangements whenever possible and, where appropriate, obtains collateral prior to trade execution. Master netting agreements incorporate rights of setoff that provide for the net settlement of subject contracts with the same counterparty in the event of default.

NOTE 10 – MAJOR SUPPLIERS
SVP purchases electric energy through its participation in the NCPA and M-S-R Public Power Agency joint powers agencies, from the Western Area Power Administration, from the market via the California Independent System Operator (CAISO), and from other sources to supply its retail electric utility customers. Additionally, SVP purchases transmission services through its participation in the TANC and from the CAISO.

The purchases of energy and transmission services that represent 5% or more of the total purchased power costs are shown in the table below:

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 10 – MAJOR SUPPLIERS (continued)
68 Supplier
June 30, 2023
Power Purchased
% of the Total
Purchased Power
NCPA 307,064,381$ 68.63%
M-S-R Energy Authority 53,305,412 11.91%
Tri-Dam Project 33,708,170 7.53%
EDF Trading North America LLC 23,565,161 5.27%
M-S-R Public Power Agency 22,424,268 5.01%
Supplier
June 30, 2022
Power Purchased
% of the Total
Purchased Power
NCPA 205,500,630$ 50.81%
M-S-R Public Power Agency 37,406,667 9.25%
M-S-R Energy Authority 28,856,522 7.14%
Tri-Dam Project 28,602,808 7.07%
NOT
E 11 – COMMITMENTS AND CONTINGENCIES
Commitments and contingencies, undeterminable in amount, include normal recurring pending claims and litigation. In the opinion of management, based upon discussion with legal counsel, there is no pending litigation, which is likely to have a material adverse effect on the financial position of the fund.

SVP has future commitments under construction projects as stated in Construction in Progress in Notes to Financial Statements 4B.

NOTE 12 – NET POSITION AND STABILIZATION AGREEMENTS
A. Net Position
Net Position is the excess of all SVP’s assets and deferred outflow of resources over all its liabilities and deferred inflow of resources. Net Position is divided into three categories that are described below:

Net investment in capital assets describes the portion of Net Position which is represented by the current net book value of SVP’s capital assets, less the outstanding balance of any debt issued to finance these assets.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 12 – NET POSITION AND STABILIZATION AGREEMENTS (continued) 69 Restricted for other agreements d escribes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which SVP cannot unilaterally alter.

Unrestricted describes the portion of Net Position which is not restricted as to use.

SVP reported net position at June 30 as follows:
2023 2022
Net investment in capital assets: 527,101,920$ 494,932,518$ Restricted:

Pension benefits 6,324,045 6,146,358
Unrestricted:

Capital projects 167,116,904 126,114,987
Rate stabilization 207,542,169 167,542,169
Operations 163,210,048 176,094,773
Total Unrestricted 537,869,121 469,751,929
Total Net Position 1,071,295,086$ 970,830,805$
B. S
tabilization Agreements
Rate Stabilization Fund
In 1996, SVP established the Rate Stabilization Fund and Cost Reduction Fund to assure that the rates were set properly with sufficient operating cash as well as cost reduction and financial stability of the Electric Utility. In December 2010, Council approved to transfer the Cost Reduction Fund as a subaccount to the Rate Stabilization Fund and continued to be used to offset Electric Utility costs in essentially the same manner. As of June 30, 2023, the balance of the Rate Stabilization Fund was $207,542,169.

Pension Stabilization Fund
In fiscal year 2016-17, the City established an irrevocable pension trust as a way to address unfunded pension liabilities. As part of the year-end process for 2016-17, City Council approved SVP to designate and make an initial deposit of $3.5 million in fiscal year 2018 toward prefunding pension obligations. As of June 30, 2023, the balance of the Pension Stabilization Fund was $6,324,045.

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

NOTES TO FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
NOTE 12 – NET POSITION AND STABILIZATION AGREEMENTS (continued) 70 C. Prior Period Adjustment
The
City of Santa Clara received review comments from the Government Finance Officers Association on the net Investment of capital assets in the Statement of Net Position in the Electric Utility Fund Statement in the Annual Comprehensive Financial Report for the fiscal year 2021-

22.The calculation of the net investment in capital assets should include the capital related deferred outflow discount and inflow refunding premium and exclude the financial assets and lease receivables in the prior fiscal year. Management concurred the suggestion and adopted the changes in the calculation. SVP adjusted the net investment of capital assets and unrestricted net position in the statements of net position for the fiscal year 2021-22. The restated net investment of capital assets and unrestricted net position for prior year are $494,932,518 and $469,751,929.

CIT

Y OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)

REQUIRED SUPPLEMENTARY INFORMATION
71 Thi
s part of the City of Santa Clara Electric Utility Enterprise Fund Financial Statements provides detailed information to better understand the data presented within the financial statements and note disclosures.

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND

RELATED RATIOS
Discloses the proportionate share of the net pension liability and related ratios, including the proportionate share of fiduciary net position as a percentage of the total pension liability, and proportionate share of the net pension liability as a percentage of covered payroll.

SCHEDULE OF CONTRIBUTIONS – PENSION PLAN
Contains information of the employer’s contractually required contribution rates, contributions to the pension plan and related ratios.

SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY AND

RELATED RATIOS
Discloses the proportionate share of the net OPEB liability and related ratios, including proportionate share of fiduciary net position as a percentage of the total OPEB liability, and the proportionate share of the net OPEB liability as a percentage of covered employee payroll.

SCHEDULE OF PLAN CONTRIBUTIONS - OPEB PLAN
Contains information of the employer’s contractually required contribution rates, contributions to the OPEB Plan and related ratios.

Required Supplementary Information
72 Measurement Date June 30, 2022 June 30, 2021 June 30, 2020 Plan's Proportion of the Net Position
Liability/(Asset) 32.31% 32.31% 32.31%
Plan's Proportionate Share of the Net Pension
Liability/(Asset) 105,823,291$ 73,533,480$ 98,396,395$ Plan's Covered Payroll 29,932,874$ 28,859,863$ 28,818,319$ Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of it's Covered
Payroll 353.54% 254.79% 341.44%
Plan's Proportionate Share of the Fiduciary Net
Position as a Percentage of the Plan's Total
Pension Liability 62.47% 72.48% 61.90%
Notes to Schedule:

Schedule of Proportionate Share of the Net Pension Liability City of Santa Clara Electric Utility Enterprise Fund Miscellaneous Plan, a Cost-Sharing Defined Benefit Pension Plan
Last Ten Fiscal Years for the Measurement Periods Ended June 30 (1)
(1)
Fiscal year 2014-15 was the first year of implementation.

Schedule of Changes in the Net Pension Liability and Related Ratios Schedule of Proportionate Share of the Net Pension Liability

73 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014

32.31% 34.97% 34.97% 34.97% 34.97% 34.97%
92,007,139$ 94,238,259$ 92,735,319$ 84,615,916$ 74,516,387$ 69,068,338$ 28,630,755$ 26,407,732$ 24,928,548$ 21,661,244$ 20,300,577$ 20,289,905$ 321.36% 356.86% 372.00% 390.63% 367.07% 340.41%

62.72% 62.97% 62.02% 62.18% 65.57% 67.42%
Schedule of Proportionate Share of the Net Pension Liability City of Santa Clara Electric Utility Enterprise Fund Miscellaneous Plan, a Cost-Sharing Defined Benefit Pension Plan
Last Ten Fiscal Years for the Measurement Periods Ended June 30

74 June 30, 2023 June 30, 2022 June 30, 2021
Actuarially determined contribution 11 ,321,067$ 11,026,399 $ 10,027,454 $ Contributions in relation to the
actuarially (11,321,067) (11,026,399) (10,027,454)
Contribution deficiency (excess) - $ - $ - $
Covered payroll 32,408,374$ 29,932,874 $ 28,859,863 $ Contributions as a percentage of
covered payroll 34.93% 36.84% 34.75%
Notes to Schedule
Valuation date 6/30/2020 6/30/2019 6/30/2018
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, closed Remaining amortization period 24 years as of valuation date Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
(1)
Fiscal year 2014-15 was the 1st year of implementati on.

7.5% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, and 7% for 2021 through 2023, net of pension plan
investment expense, including inflation.

2.75% for 2015 to 2019, 2.675% for 2020, and 2.50% for
2021 through 2023.
5-year smoothed market
The probabilities of Retirement are based on the CalPERS Experience Study.

Varies by Entry Age and Service.

The probabilities of mortality are based on CalPERS
Experience Study. Pre-retirement and post-retirement
mortality rates include 20 years of projected mortality improvement using Scale AA published by the Society of
Actuaries for 2015 to 2018. For 2019,2020, 2021 and 2022, pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

Schedule of Contributions
City of Santa Clara Electric Utility Enterprise Fund Miscellaneous Plan, a Cost-Sharing Defined Benefit Pension Plan
Last Ten Fiscal Years (1)
Schedule of Contributions (Pension Plan)

75 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 9,365,958$ 8,258,503$ 8,832,105 $ 7,558,410 $ 6,484,674 $ 5,335,643 $ (9,365,958) (8,258,503) (8,832,105) (7,558,410) (6,484,674) (5,335,643) - $ - $ - $ - $ - $ - $ 28,818,319$ 28,630,755$ 26,407,732 $ 24,928,548 $ 21,661,244 $ 20,300,577 $

32.50% 28.84% 33.45% 30.32% 29.94% 26.28%
6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Schedule of Contributions
City of Santa Clara Electric Utility Enterprise Fund Miscellaneous Plan, a Cost-Sharing Defined Benefit Pension Plan
Last Ten Fiscal Years

76 Measurement Date
June 30,
2023
June 30,
2022
June 30,
2021
Liability/(Asset) 19.32% 32.31% 32.31%
Plan's Proportionate Share of the Net OPEB
Liability/(Asset) 7,288,705$ 13,057,945$ 11,860,957$
Plan's Covered Payroll 34,795,415$ 54,801,960$ 52,857,221$ Plan's Proportionate Share of the Net OPEB
Liability/(Asset) as a Percentage of it's Covered Payroll 20.95% 23.83% 22.44% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan's Total OPEB Liability 44.03% 40.25% 44.03% June 30,
2020
June 30,
2019
June 30,
2018
Plan's Proportionate Share of the Net Position
Liability/(Asset) 32.31% 34.97% 34.97%
Liability/(Asset) 12,076,500$ 13,339,656 $ 16,285,879 $ Plan's Covered Payroll 53,127,656$ 52,963,135 $ 47,313,294 $ Plan's Proportionate Share of the Net OPEB
Liability/(Asset) as a Percentage of it's Covered Payroll 22.73% 25.19% 34.42% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan's Total OPEB Liability 40.11% 37.14% 28.90% Notes to Schedule:

Schedule of Proportionate Share of the Net OPEB Liability and Related Ratios City of Santa Clara Electric Utility Enterprise Fund
OPEB Plan, A Cost-Sharing Defined Benefit Plan
Last Ten Fiscal Years Ended June 30
(1)
(1)
Fiscal year 2017-18 was the first year of implementation.

Sch
edule of Proportionate Share of the Net OPEB Liability and Related Ratios

77 June 30, 2023 June 30, 2022 June 30, 2021
Actuarially determined contribution 950$ 1,534$ 1,559$ Contributions in relation to the actuarially
determined contributions (758) (635) (570) Contribution deficiency (excess) 192$ 899$ 989$ Covered payroll 34,795$ 54,802$ 52,857$ Contributions as a percentage of covered payroll 2.18% 1.16% 1.08% June 30, 2020 June 30, 2019 June 30, 2018
Actuarially determined contribution 1,512$ 1,856$ 1,911$ Contributions in relation to the actuarially
determined contributions (638) (748) (886) Contribution deficiency (excess) 874$ 1,108$ 1,025$ Covered payroll 53,128$ 52,963$ 47,313$ Contributions as a percentage of covered payroll 1.20% 1.41% 1.87% Notes to Schedule:
(1)
Fiscal year 2017-18 was the first year of implementation. (In Thousands)
Schedule of Proportionate Share of Contributions
City of Santa Clara Electric Utility Enterprise Fund
OPEB Plan, A Cost-Sharing Defined Benefit Plan
Last Ten Fiscal Years Ended June 30 (1)

Schedule of Proportionate Share of the Contributions (OPEB Plan)

78 Actuarial valuation date June 30, 2020
Actuarial cost method Entry Age Normal, Level Percentage of Payroll Amortization method Level percent of payroll
Unfunded liability amortization
Asset valuation method
Discount rate 5.25%
General inflation 2.75%
Healthcare trend
Mortality CalPERS 1997-2015 Experience Study
Mortality improvement

CITY OF SANTA CLARA ELECTRIC UTILITY ENTERPRISE FUND
(SILICON VALLEY POWER)
Notes to Schedule of Employer Contribution (OPEB Plan)
Post-retirement mortality projected fully generational with Scale MP-2020
Methods and Assumptions for 2022-23 Actuarially Determine Contributions 15 years (open period) for method, assumption, plan changes, and gains and losses
Maximum 30-year combined period
Investment gains and losses spread over a 5-year rolling period.

Not less that 80% nor greater than 120% of fair value
Non-Medicare - 7% for 2022, decreasing to an ultimated
rate of 4% in 2076
Medicare (non-Kaiser)- 6.1% for 2022, decreasing to an ultimated rate of 4% in 2076
30 years (closed period) for initial UAAL
(17 Years remaining on June 30, 2022)
20 years (closed period) for implied subsidy on 06/30/2019 (17 years remaining on June 30, 2022)
Medicare (Kaiser)- 5% for 2022, decreasing to an ultimated rate of 4% in 2076

79 This page intentionally left blank
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-915 Agenda Date: 12/12/2023

REPORT TO COUNCIL

SUBJECT
Action on Approval of the Spending Plan for Supplemental Law Enforcement Services Fund and the Related Budget Amendment

COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure

BACKGROUND
In 1996, Assembly Bill 3229 established the Citizen’s Option for Public Safety (COPS) program’s Supplemental Law Enforcement Services Fund (SLESF). The Legislature determined that there was a compelling need for additional resources at the local level for the purpose of ensuring public safety and established the COPS program to advance community policing in all counties. The COPS program awards non-competitive and non-matching grants to law enforcement agencies to fund frontline municipal police services. The City has used these funds in prior years to purchase officer safety and duty equipment, communications equipment and vehicles, among other things, that are all used directly and solely in the provision of frontline police services to the community.

Per Government Code §§ 30061-30063, cities are allocated a proportionate share of COPS funds by the California Department of Finance, through Santa Clara County. Proportionate shares are based on population estimates determined by the California Department of Finance.

This is not a fixed amount grant. Under the standard grant program allocation, the City of Santa Clara is eligible to receive a minimum of $100,000 annually. Each fall, the California Department of Finance estimates the allocation for each law enforcement agency in the county; the actual amount paid varies from the projection and is unknown until the payment cycle is complete. Monthly distributions are received via wire transfer and the City’s Finance Department deposits these funds into a separate grant account. These distributions are not received in equal installments from month-to- month; therefore, spending over the course of the payment cycle can be unpredictable.

In recent years, the City of Santa Clara has received COPS funding as follows:

Funding Cycle Minimum Amount to
be Allocated
Projected Allocation * Actual Amount
Received **
COP 11 - 12 $100,000 $224,246 $169,674
COP 12 - 13 $100,000 $191,055 $200,160
COP 13 - 14 $100,000 $191,913 $205,650
COP 14 - 15 $100,000 $191,446 $219,432
COP 15 - 16 $100,000 $189,093 $244,542
COP 16 - 17 $100,000 $190,585 $270,027
COP 17 - 18 $100,000 $196,976 $282,165
COP 18 - 19 $100,000 $196,976 $307,179
COP 19 - 20 $100,000 $195,075 $305,734
COP 20 - 21 $100,000 $196,119 $327,071
COP 21 - 22 $100,000 $200,298 $331,035
COP 22 - 23 $100,000 $200,980 $374,141
City of Santa Clara Printed on 12/8/2023Page 1 of 4
powered by Legistar™
23-915 Agenda Date: 12/12/2023
Funding Cycle Minimum Amount to
be Allocated
Projected Allocation * Actual Amount
Received **
COP 11 - 12 $100,000 $224,246 $169,674
COP 12 - 13 $100,000 $191,055 $200,160
COP 13 - 14 $100,000 $191,913 $205,650
COP 14 - 15 $100,000 $191,446 $219,432
COP 15 - 16 $100,000 $189,093 $244,542
COP 16 - 17 $100,000 $190,585 $270,027
COP 17 - 18 $100,000 $196,976 $282,165
COP 18 - 19 $100,000 $196,976 $307,179
COP 19 - 20 $100,000 $195,075 $305,734
COP 20 - 21 $100,000 $196,119 $327,071
COP 21 - 22 $100,000 $200,298 $331,035
COP 22 - 23 $100,000 $200,980 $374,141
*The Projected Allocation column shows the California Department of Finance’s initial estimated grant allocation **This column reflects the amount in excess of the estimated grant allocated received by the Police Department, if any.

The COPS/SLESF grant does not have any application or other requirements; the monies are transferred to local entities through the County by operation of law (Government Code §§30061- 30063) and are to be expended in accordance with the requirements of those code sections. The Government Code contains the following requirements for a recipient agency:
· The funds shall be used exclusively for front line law enforcement services · The funds cannot be used to supplant other existing funding sources for general law enforcement services
· The City Council shall appropriate existing and anticipated moneys exclusively to fund frontline municipal police services, in accordance with written requests submitted by the Chief of Police · Moneys in the fund shall not be transferred to, or intermingled with, the moneys in any other fund in the City treasury, except to the extent necessary to facilitate the appropriation and expenditure of those transferred moneys
· Once the appropriation of the grant funds is made, it cannot be subsequently altered by the City Council
· Administrative overhead costs cannot exceed of 0.5% of the City’s allocation · The funds cannot be used for a capital or construction project that does not directly support front line law enforcement services

DISCUSSION
Santa Clara County’s estimated allocation for front-line law enforcement equipment for Fiscal Year 2023/24 is $3,343,624. Based on the January 2023 population estimate of 132,476, the City of Santa Clara expects to receive $205,975 in COPS funding or 6.2% of the available amount for the county and 0.24% of the statewide total (Attachment 1).

In addition, in FY 2023/24, the Police Department received an additional allocation for COP23. The original allocation and funding plan were approved by City Council on February 7, 2023 (RTC #23- 1418) in the amount of $200,980, with the understanding the Police Department would return to the City Council should additional funds become available. Staff recommends recognizing and appropriating the additional funds of $173,161.

In accordance with grant requirements, the Police Department hereby requests that the City Council appropriate existing and anticipated grant moneys to fund front line municipal police services, as described below. If additional grant funds become available, staff will bring forward a budget City of Santa Clara Printed on 12/8/2023Page 2 of 4
powered by Legistar™
23-915 Agenda Date: 12/12/2023
adjustment.

Current
Priority
Equipment, Program or Service Amount
1 Mobile Data Computers and Associated
Equipment
$379,136
TOTAL $379,136
Staff recommends using the Supplemental Law Enforcement Services funds to replace 67 Mobile Data Computers (MDCs) and associated equipment. This accommodates the need to equip the Police vehicles that use this technology and to provide test and spare units. The in-vehicle MDCs are approaching end of life with the warranty expiring in June 2024. To avoid the risks of lack of warranty and/or the high cost of support and maintenance, the Information Technology Department recommends the replacement of the MDCs and corresponding modems, keyboards, docks, and antennae with a new five-year warranty. This includes upgrading the modems from 4G to 5G for higher download speeds, lower latency, and increased reliability. These replacements would ensure minimal disruption to patrol units. The total cost to replace the Police equipment is estimated at $750,000 - $800,000. The City has not previously budgeted any funds for this project and does not currently have any other funding source for it. The recommended COPS funding would cover a portion of the replacement costs; it is unlikely this funding source will be sufficient to fund the replacement in its entirety. The Department will explore additional funding opportunities for the remaining project costs.

ENVIRONMENTAL REVIEW
This 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
In September 2023, the City of Santa Clara received official notice from the California Department of Finance that its expected Citizens’ Option for Public Safety allocation for FY 2023/24 is $205,975. In addition, in FY 2023/24, the Police Department received funding in excess of its FY 2023 allocation by $173,161. The Department recommends recognizing and appropriating the total $379,136 in available resources in the Police Operating Grant Trust Fund, as detailed in the table below.

Budget Amendment
FY 2023/24
Current
Budget
Increase /
(Decrease)
Revised
Budget
Police Operating Grant Trust Fund
Revenue
Grant Funding - COP23 $0 $173,161 $173,161
Grant Funding - COP24 $0 $205,975 $205,975
Expenditures
Citizen’s Option for Public Safety FY
2022/2023
$70,000 $173,161 $243,161
Citizen’s Option for Public Safety FY
2023/2024
$0 $205,975 $205,975
City of Santa Clara Printed on 12/8/2023Page 3 of 4
powered by Legistar™
23-915 Agenda Date: 12/12/2023
Current
Budget
Increase /
(Decrease)
Revised
Budget
Police Operating Grant Trust Fund
Revenue
Grant Funding - COP23 $0 $173,161 $173,161
Grant Funding - COP24 $0 $205,975 $205,975
Expenditures
Citizen’s Option for Public Safety FY
2022/2023
$70,000 $173,161 $243,161
Citizen’s Option for Public Safety FY
2023/2024
$0 $205,975 $205,975

COORDINATION
This report has been coordinated with the Finance Department, City Attorney’s Office and Police 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.

RECOMMENDATION

1. Approve the spending plan for funds received from the Citizen’s Option for Public Safety Programs Supplemental Law Enforcement Services Fund;

2. Approve the following FY 2023/2024 budget amendments in the Police Operating Grant Trust Fund:
a) Recognize grant revenue in the amount of $205,975 and establish a COP24 grant appropriation in the amount of $205,975 (five affirmative Council votes required to appropriate additional revenue).; and
b) Recognize grant revenue in the amount of $173,161 and increase the COP23 grant appropriation in the amount of $173,161 (five affirmative Council votes required to appropriate additional revenue).

Reviewed by: Pat Nikolai, Chief of Police
Approved by: Jovan D. Grogan, City Manager

ATTACHMENTS

1. Letter from the California Department of Finance with Citizens’ Option for Public Safety percentages and allocation
City of Santa Clara Printed on 12/8/2023Page 4 of 4
powered by Legistar™

September 13, 2023

Honorable Malia M. Cohen
State Controller
3301 C Street
Sacramento, CA 95816

Attention: Evelyn Calderon-Yee, Chief
Bureau of Payments, Local Government Programs and Services Division, State Controller’s Office

Dear Controller Cohen:

Pursuant to Government Code section 30029.05, subdivision (e), paragraph (2), the Department of Finance respectfully submits the attached (Attachments I and II) percentages for the 2023-24 allocation of $214,200,000 in Citizens’ Option for Public Safety (COPS) and Juvenile Justice Crime Prevention Act (JJCPA) funds deposited in the Enhancing Law Enforcement Activities Subaccount (ELEAS) in the Law Enforcement Services Account within the Local Revenue Fund 2011.

Pursuant to Government Code section 30061, subdivisions (b) and (g), subsequent to the allocation described in Section 29552, subdivision (d), 47.08727192 percent of the remaining funds deposited in the ELEAS for the COPS (23.54363596 percent) and JJCPA (23.54363596 percent) programs are to be allocated, according to the relative population for each county and city, as follows:

(1) 5.15 percent to county sheriffs for county jail construction and operation ($11,031,300).

(2) 5.15 percent to district attorneys for criminal prosecution ($11,031,300).

(3) 50 percent to counties to implement a comprehensive multi-agency juvenile justice plan ($107,100,000).

(4) 39.7 percent to counties and cities for front-line law enforcement ($85,037,400).

Please note that the by-county percentages for the first three allocations above: (1) county jail construction and operation, (2) district attorney criminal prosecution, and (3) multi-agency juvenile justice plans, are specified on Attachment I and the by- county/city percentages for the fourth allocation, front-line law enforcement, are identified on Attachment II.
~t,IT 0~ ..,. . ,,,..
t ~ "1-
: ,;;;,;;;, i
lll 0
0 ,.,,
_.. DEPARTMENT OF Gavin Newsom ■ Governor
◊,q(,.-o,..,,~ f IN AN CE ___________ 9_1_5_L-St-re_e_t -■-S_a_c_r_a_m_e_n_t_o_C_A_■ _9_5_8_1_4_-3_7_0_6_■_w_w_w_.d_o_f._c_a_.g_o_v_

2 Pursuant to Government Code section 30061, subdivision (b), paragraph (3), each law enforcement jurisdiction receiving front-line law enforcement funding is to receive a minimum grant of $100,000. The percentages included in Attachment II are calculated in a manner that provides for a minimum grant allocation of $100,000 to each law enforcement jurisdiction listed in Attachment II.

Also note that the allocations shown on Attachments I and II may be slightly different from the final allocations made by the State Controller’s Office due to rounding.

If you have any questions, or need additional information, please call Patrick Plant, Staff Finance Budget Analyst, at (916) 445-8913.

Sincerely,

AMY JARVIS
Program Budget Manager

Attachment

cc: Natalie Sidarous, Chief, Local Government Programs and Services Division, State Controller’s Office
Anne Kato, Assistant Chief, Local Government Programs and Services Division, State Controller’s Office
Melma Dizon, Manager, Local Apportionments Section, Local Government Programs and Services Division, State Controller’s Office Mr. Ou Saelee, Supervisor, Local Apportionments Section, Local Government Programs and Services Division, State Controller’s Office Kathleen Howard, Executive Director, Board of State and Community Corrections

2023-24 Enhancing Law Enforcement Activities Subaccount Citizens' Option for Public Safety and Juvenile Justice Crime Prevention Act Allocations Based on Jan. 1, 2023 Population Estimates
Attachment I
rounded
Co. Jail
Operation
Allocation by
County
Co. Jail
Operation
Allocation by
County
Percent of Co.

Jail Operation
Allocation by
County
District
Attorney
Allocation by
County
Percent of District
Attorney
Allocation by
County
Juvenile
Justice
Allocation by
County
Juvenile Justice
Allocation by
County
Percent of
Juvenile Justice
Allocation by
County
Total
Allocation by
County
Percent of Total
Allocation by
County
Net Total
Allocation by
County
Front-line Law
Enforcement
Percent of Net
Total Allocation
by County
Alameda 1,636,194 4.201808664% 4.201808660% 4.20180866% $463,514 463,514 4.20180866% $463,514 4.20180866% $4,500,137 4,500,137 4.20180866% $5,427,165 4.20180866% $8,227,687 $2,800,522 3.29328243% Alpine 1,184 0.003040557% 0.003040560% 0.00304056% $335 335 0.00304056% $335 0.00304056% $3,256 3,256 0.00304056% $3,927 0.00304056% $103,927 $100,000 0.11759532% Amador 39,837 0.102302937% 0.102302940% 0.10230294% $11,285 11,285 0.10230294% $11,285 0.10230294% $109,566 109,566 0.10230294% $132,137 0.10230294% $732,137 $600,000 0.70557190% Butte 205,592 0.527968106% 0.527968110% 0.52796811% $58,242 58,242 0.52796811% $58,242 0.52796811% $565,454 565,454 0.52796811% $681,937 0.52796811% $1,348,915 $666,977 0.78433422% Calaveras 44,890 0.115279234% 0.115279230% 0.11527923% $12,717 12,717 0.11527923% $12,717 0.11527923% $123,464 123,464 0.11527923% $148,898 0.11527923% $348,898 $200,000 0.23519063% Colusa 21,771 0.055908759% 0.055908760% 0.05590876% $6,167 6,167 0.05590876% $6,167 0.05590876% $59,878 59,878 0.05590876% $72,213 0.05590876% $372,213 $300,000 0.35278595% Contra Costa 1,147,653 2.947216723% 2.947216720% 2.94721672% $325,116 325,116 2.94721672% $325,116 2.94721672% $3,156,469 3,156,469 2.94721672% $3,806,702 2.94721672% $6,376,642 $2,569,941 3.02212972% Del Norte 26,599 0.068307248% 0.068307250% 0.06830725% $7,535 7,535 0.06830725% $7,535 0.06830725% $73,157 73,157 0.06830725% $88,227 0.06830725% $288,227 $200,000 0.23519063% El Dorado 189,006 0.485374625% 0.485374620% 0.48537462% $53,543 53,543 0.48537462% $53,543 0.48537462% $519,836 519,836 0.48537462% $626,922 0.48537462% $1,072,385 $445,463 0.52384335% Fresno 1,011,499 2.597568052% 2.597568050% 2.59756805% $286,546 286,546 2.59756805% $286,546 2.59756805% $2,781,995 2,781,995 2.59756805% $3,355,086 2.59756805% $5,940,600 $2,585,514 3.04044283% Glenn 28,636 0.073538341% 0.073538340% 0.07353834% $8,112 8,112 0.07353834% $8,112 0.07353834% $78,760 78,760 0.07353834% $94,984 0.07353834% $394,984 $300,000 0.35278595% Humboldt 134,047 0.344237814% 0.344237810% 0.34423781% $37,974 37,974 0.34423781% $37,974 0.34423781% $368,679 368,679 0.34423781% $444,627 0.34423781% $1,254,850 $810,224 0.95278513% Imperial 179,476 0.460901221% 0.460901220% 0.46090122% $50,843 50,843 0.46090122% $50,843 0.46090122% $493,625 493,625 0.46090122% $595,312 0.46090122% $1,395,312 $800,000 0.94076254% Inyo 18,896 0.048525649% 0.048525650% 0.04852565% $5,353 5,353 0.04852565% $5,353 0.04852565% $51,971 51,971 0.04852565% $62,677 0.04852565% $262,677 $200,000 0.23519063% Kern 907,476 2.330433017% 2.330433020% 2.33043302% $257,077 257,077 2.33043302% $257,077 2.33043302% $2,495,894 2,495,894 2.33043302% $3,010,048 2.33043302% $5,316,915 $2,306,867 2.71276784% Kings 151,018 0.387819990% 0.387819990% 0.38781999% $42,782 42,782 0.38781999% $42,782 0.38781999% $415,355 415,355 0.38781999% $500,918 0.38781999% $1,000,918 $500,000 0.58797658% Lake 66,800 0.171544951% 0.171544950% 0.17154495% $18,924 18,924 0.17154495% $18,924 0.17154495% $183,725 183,725 0.17154495% $221,572 0.17154495% $521,572 $300,000 0.35278595% Lassen 28,275 0.072611280% 0.072611280% 0.07261128% $8,010 8,010 0.07261128% $8,010 0.07261128% $77,767 77,767 0.07261128% $93,787 0.07261128% $293,787 $200,000 0.23519063% Los Angeles 9,761,210 25.067159977% 25.067159980% 25.0671599700% $2,765,234 2,765,234 25.06715997% $2,765,234 25.06715997% $26,846,928 26,846,928 25.06715997% $32,377,396 25.06715997% $50,974,083 $18,596,687 21.86883356% Madera 158,148 0.406130102% 0.406130100% 0.40613010% $44,801 44,801 0.40613010% $44,801 0.40613010% $434,965 434,965 0.40613010% $524,568 0.40613010% $841,160 $316,591 0.37229674% Marin 252,959 0.649608370% 0.649608370% 0.64960837% $71,660 71,660 0.64960837% $71,660 0.64960837% $695,731 695,731 0.64960837% $839,051 0.64960837% $2,041,718 $1,202,667 1.41428044% Mariposa 16,935 0.043489727% 0.043489730% 0.04348973% $4,797 4,797 0.04348973% $4,797 0.04348973% $46,578 46,578 0.04348973% $56,172 0.04348973% $156,172 $100,000 0.11759532% Mendocino 89,164 0.228976556% 0.228976560% 0.22897656% $25,259 25,259 0.22897656% $25,259 0.22897656% $245,234 245,234 0.22897656% $295,752 0.22897656% $795,752 $500,000 0.58797658% Merced 285,337 0.732756311% 0.732756310% 0.73275631% $80,833 80,833 0.73275631% $80,833 0.73275631% $784,782 784,782 0.73275631% $946,447 0.73275631% $1,727,448 $781,001 0.91842071% Modoc 8,527 0.021897662% 0.021897660% 0.02189766% $2,416 2,416 0.02189766% $2,416 0.02189766% $23,452 23,452 0.02189766% $28,284 0.02189766% $228,284 $200,000 0.23519063% Mono 13,156 0.033785110% 0.033785110% 0.03378511% $3,727 3,727 0.03378511% $3,727 0.03378511% $36,184 36,184 0.03378511% $43,638 0.03378511% $243,638 $200,000 0.23519063% Monterey 430,368 1.105201456% 1.105201460% 1.10520146% $121,918 121,918 1.10520146% $121,918 1.10520146% $1,183,671 1,183,671 1.10520146% $1,427,507 1.10520146% $2,937,528 $1,510,021 1.77571387% Napa 134,637 0.345752957% 0.345752960% 0.34575296% $38,141 38,141 0.34575296% $38,141 0.34575296% $370,301 370,301 0.34575296% $446,584 0.34575296% $1,066,026 $619,442 0.72843499% Nevada 100,720 0.258652806% 0.258652810% 0.25865281% $28,533 28,533 0.25865281% $28,533 0.25865281% $277,017 277,017 0.25865281% $334,083 0.25865281% $738,588 $404,505 0.47567906% Orange 3,137,164 8.056356933% 8.056356930% 8.05635693% $888,721 888,721 8.05635693% $888,721 8.05635693% $8,628,358 8,628,358 8.05635693% $10,405,800 8.05635693% $16,047,923 $5,642,123 6.63487220% Placer 410,305 1.053678906% 1.053678910% 1.05367891% $116,234 116,234 1.05367891% $116,234 1.05367891% $1,128,490 1,128,490 1.05367891% $1,360,959 1.05367891% $2,283,382 $922,423 1.08472613% Plumas 18,996 0.048782453% 0.048782450% 0.04878245% $5,381 5,381 0.04878245% $5,381 0.04878245% $52,246 52,246 0.04878245% $63,009 0.04878245% $263,009 $200,000 0.23519063% Riverside 2,439,234 6.264046045% 6.264046050% 6.26404605% $691,006 691,006 6.26404605% $691,006 6.26404605% $6,708,793 6,708,793 6.26404605% $8,090,805 6.26404605% $12,669,461 $4,578,657 5.38428581% Sacramento 1,572,453 4.038119342% 4.038119340% 4.03811934% $445,457 445,457 4.03811934% $445,457 4.03811934% $4,324,826 4,324,826 4.03811934% $5,215,740 4.03811934% $7,819,692 $2,603,952 3.06212522% San Benito 65,666 0.168632795% 0.168632800% 0.16863280% $18,602 18,602 0.16863280% $18,602 0.16863280% $180,606 180,606 0.16863280% $217,811 0.16863280% $517,811 $300,000 0.35278595% San Bernardino 2,182,056 5.603603122% 5.603603120% 5.60360312% $618,150 618,150 5.60360312% $618,150 5.60360312% $6,001,459 6,001,459 5.60360312% $7,237,759 5.60360312% $11,274,642 $4,036,883 4.74718504% San Diego 3,269,755 8.396855684% 8.396855680% 8.39685568% $926,282 926,282 8.39685568% $926,282 8.39685568% $8,993,032 8,993,032 8.39685568% $10,845,597 8.39685568% $16,335,033 $5,489,436 6.45531961% San Francisco 831,703 2.135845060% 2.135845060% 2.13584506% $235,611 235,611 2.13584506% $235,611 2.13584506% $2,287,490 2,287,490 2.13584506% $2,758,713 2.13584506% $4,051,854 $1,293,141 1.52067377% San Joaquin 786,145 2.018850376% 2.018850380% 2.01885038% $222,705 222,705 2.01885038% $222,705 2.01885038% $2,162,189 2,162,189 2.01885038% $2,607,600 2.01885038% $4,039,552 $1,431,953 1.68390916% San Luis Obispo 278,348 0.714808292% 0.714808290% 0.71480829% $78,853 78,853 0.71480829% $78,853 0.71480829% $765,560 765,560 0.71480829% $923,265 0.71480829% $1,811,604 $888,339 1.04464505% San Mateo 737,644 1.894297956% 1.894297960% 1.89429796% $208,966 208,966 1.89429796% $208,966 1.89429796% $2,028,793 2,028,793 1.89429796% $2,446,724 1.89429796% $4,791,852 $2,345,128 2.75776048% Santa Barbara 440,557 1.131367197% 1.131367200% 1.13136720% $124,805 124,805 1.13136720% $124,805 1.13136720% $1,211,694 1,211,694 1.13136720% $1,461,303 1.13136720% $2,578,718 $1,117,415 1.31402754% Santa Clara 1,886,079 4.843522885% 4.843522890% 4.84352289% $534,304 534,304 4.84352289% $534,304 4.84352289% $5,187,413 5,187,413 4.84352289% $6,256,020 4.84352289% $9,599,644 $3,343,624 3.93194552% Santa Cruz 262,051 0.672956973% 0.672956970% 0.67295697% $74,236 74,236 0.67295697% $74,236 0.67295697% $720,737 720,737 0.67295697% $869,209 0.67295697% $1,467,396 $598,187 0.70344009% Shasta 179,436 0.460798499% 0.460798500% 0.46079850% $50,832 50,832 0.46079850% $50,832 0.46079850% $493,515 493,515 0.46079850% $595,179 0.46079850% $1,041,138 $445,959 0.52442660% Sierra 3,193 0.008199746% 0.008199750% 0.00819975% $905 905 0.00819975% $905 0.00819975% $8,782 8,782 0.00819975% $10,591 0.00819975% $210,591 $200,000 0.23519063% Siskiyou 43,548 0.111832927% 0.111832930% 0.11183293% $12,337 12,337 0.11183293% $12,337 0.11183293% $119,773 119,773 0.11183293% $144,446 0.11183293% $1,244,446 $1,100,000 1.29354849% Solano 443,749 1.139564375% 1.139564370% 1.13956437% $125,709 125,709 1.13956437% $125,709 1.13956437% $1,220,473 1,220,473 1.13956437% $1,471,891 1.13956437% $2,503,621 $1,031,730 1.21326617% Sonoma 478,174 1.227969089% 1.227969090% 1.22796909% $135,461 135,461 1.22796909% $135,461 1.22796909% $1,315,155 1,315,155 1.22796909% $1,586,077 1.22796909% $2,861,094 $1,275,017 1.49935993% Stanislaus 545,939 1.401992197% 1.401992200% 1.40199220% $154,658 154,658 1.40199220% $154,658 1.40199220% $1,501,534 1,501,534 1.40199220% $1,810,850 1.40199220% $3,128,998 $1,318,148 1.55008030% Sutter 98,952 0.254112514% 0.254112510% 0.25411251% $28,032 28,032 0.25411251% $28,032 0.25411251% $272,154 272,154 0.25411251% $328,218 0.25411251% $636,244 $308,025 0.36222321% Tehama 64,271 0.165050382% 0.165050380% 0.16505038% $18,207 18,207 0.16505038% $18,207 0.16505038% $176,769 176,769 0.16505038% $213,183 0.16505038% $613,183 $400,000 0.47038127% Trinity 15,939 0.040931961% 0.040931960% 0.04093196% $4,515 4,515 0.04093196% $4,515 0.04093196% $43,838 43,838 0.04093196% $52,869 0.04093196% $152,869 $100,000 0.11759532% Tulare 475,064 1.219982491% 1.219982490% 1.21998249% $134,580 134,580 1.21998249% $134,580 1.21998249% $1,306,601 1,306,601 1.21998249% $1,575,761 1.21998249% $2,714,483 $1,138,722 1.33908373% Tuolumne 54,590 0.140189204% 0.140189200% 0.14018920% $15,465 15,465 0.14018920% $15,465 0.14018920% $150,143 150,143 0.14018920% $181,072 0.14018920% $381,072 $200,000 0.23519063% Ventura 825,653 2.120308429% 2.120308430% 2.12030843% $233,898 233,898 2.12030843% $233,898 2.12030843% $2,270,850 2,270,850 2.12030843% $2,738,645 2.12030843% $4,347,741 $1,609,095 1.89222069% Yolo 220,880 0.567228274% 0.567228270% 0.56722827% $62,573 62,573 0.56722827% $62,573 0.56722827% $607,501 607,501 0.56722827% $732,647 0.56722827% $1,232,647 $500,000 0.58797658% Yuba 82,677 0.212317693% 0.212317690% 0.21231769% $23,421 23,421 0.21231769% $23,421 0.21231769% $227,392 227,392 0.21231769% $274,235 0.21231769% $577,257 $303,022 0.35633946% Total 38,940,231 100.00000000% 100.00000001% 100.00000000% $11,031,300 11,031,300 100.00000000% $11,031,300 100.00000000% $107,100,000 107,100,000 100.00000000% $129,162,600 100.00000000% $214,200,000 $85,037,400 100.00000000% *Note that the COPS Front-line Law Enforcement breakdown by county and city for SCO distribution is provided in Attachment II. 107,100,000 129,162,600
Total

5.15%
Net Total (Including Front-line Enforcemnet) JJCPA
100.00%
214,200,000

50.00% 60.30%
COUNTY
1/1/2023
Population by
County
Percent of 1/1/2023
Population by County
Percent of 1/1/2023
Population by County
COPS (Excluding Front-line Enforcement)*

5.15%
11,031,300 11,031,300
2023-24 Enhancing Law Enforcement Activities Subaccount Citizens' Option for Public Safety
Front-line Law Enforcement Allocation for 2023-24

ATTACHMENT II
City/County
City/County
Population Estimates
1/1/2023
Projected Allocations by
City/County
Percent of Allocation by
City/County
Alameda 1,636,194 $2,800,522 3.29328244%
1 Alameda 77,287 $120,167 0.14131044%
2 Albany 21,401 $100,000 0.11759532%
3 Berkeley 123,562 $192,116 0.22591898%
4 Dublin 71,750 $111,558 0.13118666%
5 Emeryville 12,610 $100,000 0.11759532%
6 Fremont 229,467 $356,778 0.41955415%
7 Hayward 159,800 $248,459 0.29217601%
8 Livermore 84,793 $131,837 0.15503430%
9 Newark 47,459 $100,000 0.11759532%
10 Oakland 419,556 $652,331 0.76711014%
11 Piedmont 10,793 $100,000 0.11759532%
12 Pleasanton 76,459 $118,879 0.13979653%
13 San Leandro 87,497 $136,041 0.15997825%
14 Union City 66,754 $103,790 0.12205205%
15 Unincorporated 147,006 $228,567 0.26878365%
16 Alpine 1,184 $100,000 0.11759532%
Amador 39,837 $600,000 0.70557192%
17 Amador 193 $100,000 0.11759532%
18 Ione 8,772 $100,000 0.11759532%
19 Jackson 4,938 $100,000 0.11759532%
20 Plymouth 1,062 $100,000 0.11759532%
21 Sutter Creek 2,590 $100,000 0.11759532%
22 Unincorporated 22,282 $100,000 0.11759532%
Butte 205,592 $666,977 0.78433424%
23 Biggs 1,990 $100,000 0.11759532%
24 Chico 107,394 $166,977 0.19635764%
25 Gridley 7,548 $100,000 0.11759532%
26 Oroville 19,409 $100,000 0.11759532%
27 Paradise 9,142 $100,000 0.11759532%
28 Unincorporated 60,109 $100,000 0.11759532%
Calaveras 44,890 $200,000 0.23519064%
29 Angels City 3,542 $100,000 0.11759532%
30 Unincorporated 41,348 $100,000 0.11759532%
Colusa 21,771 $300,000 0.35278596%
31 Colusa 6,428 $100,000 0.11759532%
32 Williams 5,568 $100,000 0.11759532%
33 Unincorporated 9,775 $100,000 0.11759532%
Contra Costa 1,147,653 $2,569,941 3.02212976%
34 Antioch 115,442 $179,491 0.21107249%
35 Brentwood 64,513 $100,306 0.11795464%
36 Clayton 10,666 $100,000 0.11759532%
37 Concord 122,074 $189,802 0.22319834%
38 Danville 42,823 $100,000 0.11759532%
39 El Cerrito 25,484 $100,000 0.11759532%
40 Hercules 26,297 $100,000 0.11759532%
41 Lafayette 25,004 $100,000 0.11759532%
42 Martinez 36,543 $100,000 0.11759532%
43 Moraga 16,893 $100,000 0.11759532%
44 Oakley 44,995 $100,000 0.11759532%
45 Orinda 19,225 $100,000 0.11759532%
46 Pinole 18,244 $100,000 0.11759532%
47 Pittsburg 74,809 $116,314 0.13677970%
48 Pleasant Hill 33,397 $100,000 0.11759532%
49 Richmond 113,518 $176,499 0.20755467%
50 San Pablo 31,301 $100,000 0.11759532%
51 San Ramon 82,870 $128,847 0.15151831%
52 Walnut Creek 69,245 $107,663 0.12660656%
2023-24 Enhancing Law Enforcement Activities Subaccount Citizens' Option for Public Safety
Front-line Law Enforcement Allocation for 2023-24

ATTACHMENT II
City/County
City/County
Population Estimates
1/1/2023
Projected Allocations by
City/County
Percent of Allocation by
City/County
53 Unincorporated 174,310 $271,019 0.31870589%
54 Kensington Police Department 0 $100,000 0.11759532%
Del Norte 26,599 $200,000 0.23519064%
55 Crescent City 5,790 $100,000 0.11759532%
56 Unincorporated 20,809 $100,000 0.11759532%
El Dorado 189,006 $445,463 0.52384336%
57 Placerville 10,585 $100,000 0.11759532%
58 South Lake Tahoe 20,548 $100,000 0.11759532%
59 Unincorporated 157,873 $245,463 0.28865272%
Fresno 1,011,499 $2,585,514 3.04044287%
60 Clovis 124,523 $193,610 0.22767606%
61 Coalinga 17,237 $100,000 0.11759532%
62 Firebaugh 8,495 $100,000 0.11759532%
63 Fowler 7,168 $100,000 0.11759532%
64 Fresno 543,428 $844,928 0.99359592%
65 Huron 6,124 $100,000 0.11759532%
66 Kerman 16,955 $100,000 0.11759532%
67 Kingsburg 12,865 $100,000 0.11759532%
68 Mendota 12,463 $100,000 0.11759532%
69 Orange Cove 9,463 $100,000 0.11759532%
70 Parlier 14,402 $100,000 0.11759532%
71 Reedley 25,381 $100,000 0.11759532%
72 Sanger 26,241 $100,000 0.11759532%
73 San Joaquin 3,608 $100,000 0.11759532%
74 Selma 24,300 $100,000 0.11759532%
75 Unincorporated 158,846 $246,976 0.29043173%
Glenn 28,636 $300,000 0.35278596%
76 Orland 8,252 $100,000 0.11759532%
77 Willows 6,395 $100,000 0.11759532%
78 Unincorporated 13,989 $100,000 0.11759532%
Humboldt 134,047 $810,224 0.95278515%
79 Arcata 18,688 $100,000 0.11759532%
80 Blue Lake 1,146 $100,000 0.11759532%
81 Eureka 26,139 $100,000 0.11759532%
82 Ferndale 1,371 $100,000 0.11759532%
83 Fortuna 12,256 $100,000 0.11759532%
84 Rio Dell 3,261 $100,000 0.11759532%
85 Trinidad 294 $100,000 0.11759532%
86 Unincorporated 70,892 $110,224 0.12961791%
Imperial 179,476 $800,000 0.94076256%
87 Brawley 27,539 $100,000 0.11759532%
88 Calexico 38,697 $100,000 0.11759532%
89 Calipatria 5,975 $100,000 0.11759532%
90 El Centro 44,445 $100,000 0.11759532%
91 Holtville 5,502 $100,000 0.11759532%
92 Imperial 21,496 $100,000 0.11759532%
93 Westmorland 1,989 $100,000 0.11759532%
94 Unincorporated 33,833 $100,000 0.11759532%
Inyo 18,896 $200,000 0.23519064%
95 Bishop 3,872 $100,000 0.11759532%
96 Unincorporated 15,024 $100,000 0.11759532%
Kern 907,476 $2,306,867 2.71276787%
97 Arvin 19,505 $100,000 0.11759532%
98 Bakersfield 408,373 $634,943 0.74666330%
99 California City 14,827 $100,000 0.11759532%
100 Delano 51,727 $100,000 0.11759532%
2023-24 Enhancing Law Enforcement Activities Subaccount Citizens' Option for Public Safety
Front-line Law Enforcement Allocation for 2023-24

ATTACHMENT II
City/County
City/County
Population Estimates
1/1/2023
Projected Allocations by
City/County
Percent of Allocation by
City/County
101 Maricopa 1,011 $100,000 0.11759532%
102 McFarland 13,748 $100,000 0.11759532%
103 Ridgecrest 27,885 $100,000 0.11759532%
104 Shafter 21,318 $100,000 0.11759532%
105 Taft 6,975 $100,000 0.11759532%
106 Tehachapi 11,960 $100,000 0.11759532%
107 Wasco 26,622 $100,000 0.11759532%
108 Unincorporated 303,525 $471,924 0.55496073%
109 Bear Valley Community Services District 0 $100,000 0.11759532% 110 Stallion Springs Community Services District 0 $100,000 0.11759532% Kings 151,018 $500,000 0.58797660%
111 Avenal 13,374 $100,000 0.11759532%
112 Corcoran 21,442 $100,000 0.11759532%
113 Hanford 58,893 $100,000 0.11759532%
114 Lemoore 26,609 $100,000 0.11759532%
115 Unincorporated 30,700 $100,000 0.11759532%
Lake 66,800 $300,000 0.35278596%
116 Clearlake 16,364 $100,000 0.11759532%
117 Lakeport 4,967 $100,000 0.11759532%
118 Unincorporated 45,469 $100,000 0.11759532%
Lassen 28,275 $200,000 0.23519064%
119 Susanville 11,593 $100,000 0.11759532%
120 Unincorporated 16,682 $100,000 0.11759532%
Los Angeles 9,761,210 $18,596,687 21.86883258%
121 Agoura Hills 19,770 $100,000 0.11759532%
122 Alhambra 81,303 $126,411 0.14865323%
123 Arcadia 55,503 $100,000 0.11759532%
124 Artesia 16,093 $100,000 0.11759532%
125 Avalon 3,351 $100,000 0.11759532%
126 Azusa 49,483 $100,000 0.11759532%
127 Baldwin Park 70,368 $109,409 0.12865984%
128 Bell 33,370 $100,000 0.11759532%
129 Bellflower 76,924 $119,602 0.14064673%
130 Bell Gardens 38,447 $100,000 0.11759532%
131 Beverly Hills 31,658 $100,000 0.11759532%
132 Bradbury 889 $100,000 0.11759532%
133 Burbank 104,535 $162,532 0.19113029%
134 Calabasas 22,808 $100,000 0.11759532%
135 Carson 92,186 $143,332 0.16855155%
136 Cerritos 47,887 $100,000 0.11759532%
137 Claremont 36,759 $100,000 0.11759532%
138 Commerce 12,036 $100,000 0.11759532%
139 Compton 93,719 $145,715 0.17135447%
140 Covina 50,350 $100,000 0.11759532%
141 Cudahy 22,270 $100,000 0.11759532%
142 Culver City 39,682 $100,000 0.11759532%
143 Diamond Bar 53,381 $100,000 0.11759532%
144 Downey 111,261 $172,990 0.20342801%
145 Duarte 22,796 $100,000 0.11759532%
146 El Monte 106,377 $165,396 0.19449817%
147 El Segundo 16,928 $100,000 0.11759532%
148 Gardena 59,809 $100,000 0.11759532%
149 Glendale 191,284 $297,411 0.34974091%
150 Glendora 51,159 $100,000 0.11759532%
151 Hawaiian Gardens 13,546 $100,000 0.11759532%
152 Hawthorne 85,702 $133,250 0.15669630%
153 Hermosa Beach 19,018 $100,000 0.11759532%
154 Hidden Hills 1,731 $100,000 0.11759532%
155 Huntington Park 53,281 $100,000 0.11759532%
156 Industry 427 $100,000 0.11759532%
157 Inglewood 106,248 $165,196 0.19426231%
2023-24 Enhancing Law Enforcement Activities Subaccount Citizens' Option for Public Safety
Front-line Law Enforcement Allocation for 2023-24

ATTACHMENT II
City/County
City/County
Population Estimates
1/1/2023
Projected Allocations by
City/County
Percent of Allocation by
City/County
158 Irwindale 1,483 $100,000 0.11759532%
159 La Canada Flintridge 19,930 $100,000 0.11759532%
160 La Habra Heights 5,505 $100,000 0.11759532%
161 Lakewood 80,154 $124,624 0.14655242%
162 La Mirada 47,899 $100,000 0.11759532%
163 Lancaster 173,376 $269,567 0.31699818%
164 La Puente 37,356 $100,000 0.11759532%
165 La Verne 32,056 $100,000 0.11759532%
166 Lawndale 30,882 $100,000 0.11759532%
167 Lomita 20,092 $100,000 0.11759532%
168 Long Beach 458,222 $712,449 0.83780649%
169 Los Angeles 3,766,109 $5,855,590 6.88589819%
170 Lynwood 66,228 $102,972 0.12109032%
171 Malibu 10,512 $100,000 0.11759532%
172 Manhattan Beach 34,284 $100,000 0.11759532%
173 Maywood 24,546 $100,000 0.11759532%
174 Monrovia 37,539 $100,000 0.11759532%
175 Montebello 61,645 $100,000 0.11759532%
176 Monterey Park 59,288 $100,000 0.11759532%
177 Norwalk 101,153 $157,274 0.18494669%
178 Palmdale 165,917 $257,970 0.30336025%
179 Palos Verdes Estates 12,935 $100,000 0.11759532%
180 Paramount 52,178 $100,000 0.11759532%
181 Pasadena 136,988 $212,991 0.25046688%
182 Pico Rivera 60,975 $100,000 0.11759532%
183 Pomona 149,721 $232,788 0.27374772%
184 Rancho Palos Verdes 41,030 $100,000 0.11759532%
185 Redondo Beach 68,407 $106,360 0.12507437%
186 Rolling Hills 1,669 $100,000 0.11759532%
187 Rolling Hills Estates 8,446 $100,000 0.11759532%
188 Rosemead 50,022 $100,000 0.11759532%
189 San Dimas 34,079 $100,000 0.11759532%
190 San Fernando 23,487 $100,000 0.11759532%
191 San Gabriel 38,466 $100,000 0.11759532%
192 San Marino 12,206 $100,000 0.11759532%
193 Santa Clarita 230,659 $358,631 0.42173359%
194 Santa Fe Springs 18,570 $100,000 0.11759532%
195 Santa Monica 91,720 $142,607 0.16769952%
196 Sierra Madre 10,821 $100,000 0.11759532%
197 Signal Hill 11,431 $100,000 0.11759532%
198 South El Monte 19,461 $100,000 0.11759532%
199 South Gate 92,628 $144,019 0.16935970%
200 South Pasadena 26,273 $100,000 0.11759532%
201 Temple City 35,813 $100,000 0.11759532%
202 Torrance 143,057 $222,427 0.26156335%
203 Vernon 205 $100,000 0.11759532%
204 Walnut 27,553 $100,000 0.11759532%
205 West Covina 107,893 $167,753 0.19727000%
206 West Hollywood 34,793 $100,000 0.11759532%
207 Westlake Village 7,919 $100,000 0.11759532%
208 Whittier 87,291 $135,721 0.15960161%
209 Unincorporated 997,999 $1,551,700 1.82472697%
Madera 158,148 $316,591 0.37229674%
210 Chowchilla 18,844 $100,000 0.11759532%
211 Madera 65,540 $101,902 0.11983239%
212 Unincorporated 73,764 $114,689 0.13486903%
Marin 252,959 $1,202,667 1.41428048%
213 Belvedere 2,045 $100,000 0.11759532%
214 Corte Madera 9,885 $100,000 0.11759532%
215 Fairfax 7,354 $100,000 0.11759532%
216 Larkspur 12,571 $100,000 0.11759532%
217 Mill Valley 13,664 $100,000 0.11759532%
218 Novato 51,392 $100,000 0.11759532%
2023-24 Enhancing Law Enforcement Activities Subaccount Citizens' Option for Public Safety
Front-line Law Enforcement Allocation for 2023-24

ATTACHMENT II
City/County
City/County
Population Estimates
1/1/2023
Projected Allocations by
City/County
Percent of Allocation by
City/County
219 Ross 2,267 $100,000 0.11759532%
220 San Anselmo 12,405 $100,000 0.11759532%
221 San Rafael 59,681 $100,000 0.11759532%
222 Sausalito 6,865 $100,000 0.11759532%
223 Tiburon 8,798 $100,000 0.11759532%
224 Unincorporated 66,032 $102,667 0.12073196%
225 Mariposa 16,935 $100,000 0.11759532%
Mendocino 89,164 $500,000 0.58797660%
226 Fort Bragg 7,014 $100,000 0.11759532%
227 Point Arena 439 $100,000 0.11759532%
228 Ukiah 15,929 $100,000 0.11759532%
229 Willits 4,858 $100,000 0.11759532%
230 Unincorporated 60,924 $100,000 0.11759532%
Merced 285,337 $781,001 0.91842072%
231 Atwater 31,418 $100,000 0.11759532%
232 Dos Palos 5,640 $100,000 0.11759532%
233 Gustine 5,945 $100,000 0.11759532%
234 Livingston 14,257 $100,000 0.11759532%
235 Los Banos 47,347 $100,000 0.11759532%
236 Merced 90,116 $140,113 0.16476679%
237 Unincorporated 90,614 $140,888 0.16567733%
Modoc 8,527 $200,000 0.23519064%
238 Alturas 2,651 $100,000 0.11759532%
239 Unincorporated 5,876 $100,000 0.11759532%
Mono 13,156 $200,000 0.23519064%
240 Mammoth Lakes 7,273 $100,000 0.11759532%
241 Unincorporated 5,883 $100,000 0.11759532%
Monterey 430,368 $1,510,021 1.77571391%
242 Carmel-by-the-Sea 3,033 $100,000 0.11759532%
243 Del Rey Oaks 1,540 $100,000 0.11759532%
244 Gonzales 8,300 $100,000 0.11759532%
245 Greenfield 19,917 $100,000 0.11759532%
246 King City 13,817 $100,000 0.11759532%
247 Marina 22,068 $100,000 0.11759532%
248 Monterey 26,845 $100,000 0.11759532%
249 Pacific Grove 14,741 $100,000 0.11759532%
250 Salinas 159,475 $247,954 0.29158179%
251 Sand City 376 $100,000 0.11759532%
252 Seaside 29,790 $100,000 0.11759532%
253 Soledad 26,230 $100,000 0.11759532%
254 Unincorporated 104,236 $162,067 0.19058360%
Napa 134,637 $619,442 0.72843501%
255 American Canyon 21,338 $100,000 0.11759532%
256 Calistoga 5,127 $100,000 0.11759532%
257 Napa 76,821 $119,442 0.14045841%
258 St Helena 5,355 $100,000 0.11759532%
259 Yountville 2,778 $100,000 0.11759532%
260 Unincorporated 23,218 $100,000 0.11759532%
Nevada 100,720 $404,505 0.47567907%
261 Grass Valley 13,488 $100,000 0.11759532%
262 Nevada City 3,342 $100,000 0.11759532%
263 Truckee 16,676 $100,000 0.11759532%
264 Unincorporated 67,214 $104,505 0.12289311%
Orange 3,137,164 $5,642,123 6.63487225%
265 Aliso Viejo 50,766 $100,000 0.11759532%
2023-24 Enhancing Law Enforcement Activities Subaccount Citizens' Option for Public Safety
Front-line Law Enforcement Allocation for 2023-24

ATTACHMENT II
City/County
City/County
Population Estimates
1/1/2023
Projected Allocations by
City/County
Percent of Allocation by
City/County
266 Anaheim 328,580 $510,880 0.60077093%
267 Brea 48,184 $100,000 0.11759532%
268 Buena Park 83,517 $129,853 0.15270128%
269 Costa Mesa 111,183 $172,869 0.20328539%
270 Cypress 49,818 $100,000 0.11759532%
271 Dana Point 33,155 $100,000 0.11759532%
272 Fountain Valley 56,987 $100,000 0.11759532%
273 Fullerton 142,873 $222,141 0.26122693%
274 Garden Grove 171,183 $266,157 0.31298853%
275 Huntington Beach 195,714 $304,298 0.35784065%
276 Irvine 303,051 $471,187 0.55409408%
277 Laguna Beach 22,445 $100,000 0.11759532%
278 Laguna Hills 30,525 $100,000 0.11759532%
279 Laguna Niguel 64,702 $100,599 0.11830020%
280 Laguna Woods 17,450 $100,000 0.11759532%
281 La Habra 61,835 $100,000 0.11759532%
282 Lake Forest 87,127 $135,466 0.15930175%
283 La Palma 15,332 $100,000 0.11759532%
284 Los Alamitos 12,129 $100,000 0.11759532%
285 Mission Viejo 91,846 $142,803 0.16792990%
286 Newport Beach 83,411 $129,688 0.15250747%
287 Orange 139,063 $216,217 0.25426078%
288 Placentia 52,507 $100,000 0.11759532%
289 Rancho Santa Margarita 47,066 $100,000 0.11759532%
290 San Clemente 63,237 $100,000 0.11759532%
291 San Juan Capistrano 35,089 $100,000 0.11759532%
292 Santa Ana 299,630 $465,868 0.54783917%
293 Seal Beach 24,647 $100,000 0.11759532%
294 Stanton 39,084 $100,000 0.11759532%
295 Tustin 79,558 $123,698 0.14546270%
296 Villa Park 5,790 $100,000 0.11759532%
297 Westminster 90,498 $140,707 0.16546524%
298 Yorba Linda 67,068 $104,278 0.12262616%
299 Unincorporated 132,114 $205,412 0.24155533%
Placer 410,305 $922,423 1.08472615%
300 Auburn 13,365 $100,000 0.11759532%
301 Colfax 2,016 $100,000 0.11759532%
302 Lincoln 52,313 $100,000 0.11759532%
303 Loomis 6,607 $100,000 0.11759532%
304 Rocklin 71,179 $110,670 0.13014266%
305 Roseville 152,928 $237,774 0.27961135%
306 Unincorporated 111,897 $173,979 0.20459086%
Plumas 18,996 $200,000 0.23519064%
307 Portola 2,094 $100,000 0.11759532%
308 Unincorporated 16,902 $100,000 0.11759532%
Riverside 2,439,234 $4,578,657 5.38428585%
309 Banning 31,250 $100,000 0.11759532%
310 Beaumont 56,590 $100,000 0.11759532%
311 Blythe 17,265 $100,000 0.11759532%
312 Calimesa 10,962 $100,000 0.11759532%
313 Canyon Lake 10,949 $100,000 0.11759532%
314 Cathedral City 51,433 $100,000 0.11759532%
315 Coachella 42,462 $100,000 0.11759532%
316 Corona 157,005 $244,113 0.28706568%
317 Desert Hot Springs 32,608 $100,000 0.11759532%
318 Eastvale 69,514 $108,081 0.12709839%
319 Hemet 89,918 $139,806 0.16440477%
320 Indian Wells 4,774 $100,000 0.11759532%
321 Indio 90,837 $141,234 0.16608506%
322 Jurupa Valley 104,983 $163,229 0.19194940%
323 Lake Elsinore 71,973 $111,904 0.13159439%
2023-24 Enhancing Law Enforcement Activities Subaccount Citizens' Option for Public Safety
Front-line Law Enforcement Allocation for 2023-24

ATTACHMENT II
City/County
City/County
Population Estimates
1/1/2023
Projected Allocations by
City/County
Percent of Allocation by
City/County
324 La Quinta 37,979 $100,000 0.11759532%
325 Menifee 110,034 $171,082 0.20118458%
326 Moreno Valley 208,289 $323,850 0.38083260%
327 Murrieta 109,998 $171,026 0.20111876%
328 Norco 25,037 $100,000 0.11759532%
329 Palm Desert 50,615 $100,000 0.11759532%
330 Palm Springs 44,092 $100,000 0.11759532%
331 Perris 78,948 $122,749 0.14434738%
332 Rancho Mirage 17,012 $100,000 0.11759532%
333 Riverside 313,676 $487,707 0.57352067%
334 San Jacinto 54,103 $100,000 0.11759532%
335 Temecula 108,899 $169,317 0.19910936%
336 Wildomar 36,336 $100,000 0.11759532%
337 Unincorporated 401,693 $624,557 0.73444969%
Sacramento 1,572,453 $2,603,952 3.06212522%
338 Citrus Heights 85,837 $133,460 0.15694313%
339 Elk Grove 177,005 $275,209 0.32363339%
340 Folsom 85,498 $132,933 0.15632331%
341 Galt 25,557 $100,000 0.11759532%
342 Isleton 759 $100,000 0.11759532%
343 Rancho Cordova 81,117 $126,122 0.14831315%
344 Sacramento 518,161 $805,643 0.94739810%
345 Unincorporated 598,519 $930,584 1.09432350%
San Benito 65,666 $300,000 0.35278596%
346 Hollister 42,891 $100,000 0.11759532%
347 San Juan Bautista 2,022 $100,000 0.11759532%
348 Unincorporated 20,753 $100,000 0.11759532%
San Bernardino 2,182,056 $4,036,883 4.74718508%
349 Adelanto 36,656 $100,000 0.11759532%
350 Apple Valley 74,996 $116,605 0.13712160%
351 Barstow 24,918 $100,000 0.11759532%
352 Big Bear Lake 4,914 $100,000 0.11759532%
353 Chino 93,137 $144,810 0.17029035%
354 Chino Hills 77,058 $119,811 0.14089174%
355 Colton 53,154 $100,000 0.11759532%
356 Fontana 213,851 $332,498 0.39100208%
357 Grand Terrace 12,814 $100,000 0.11759532%
358 Hesperia 100,041 $155,545 0.18291352%
359 Highland 55,984 $100,000 0.11759532%
360 Loma Linda 25,228 $100,000 0.11759532%
361 Montclair 37,494 $100,000 0.11759532%
362 Needles 4,756 $100,000 0.11759532%
363 Ontario 180,717 $280,981 0.33042036%
364 Rancho Cucamonga 173,545 $269,830 0.31730717%
365 Redlands 71,972 $111,903 0.13159257%
366 Rialto 102,985 $160,122 0.18829629%
367 San Bernardino 223,230 $347,081 0.40815051%
368 Twentynine Palms 25,929 $100,000 0.11759532%
369 Upland 78,376 $121,860 0.14330155%
370 Victorville 137,193 $213,309 0.25084170%
371 Yucaipa 53,991 $100,000 0.11759532%
372 Yucca Valley 21,635 $100,000 0.11759532%
373 Unincorporated 297,482 $462,528 0.54391180%
San Diego 3,269,755 $5,489,436 6.45531964%
374 Carlsbad 114,549 $178,102 0.20943974%
375 Chula Vista 274,784 $427,237 0.50241110%
376 Coronado 22,150 $100,000 0.11759532%
377 Del Mar 3,903 $100,000 0.11759532%
378 El Cajon 104,619 $162,663 0.19128387%
379 Encinitas 61,085 $100,000 0.11759532%
380 Escondido 149,799 $232,909 0.27389033%
2023-24 Enhancing Law Enforcement Activities Subaccount Citizens' Option for Public Safety
Front-line Law Enforcement Allocation for 2023-24

ATTACHMENT II
City/County
City/County
Population Estimates
1/1/2023
Projected Allocations by
City/County
Percent of Allocation by
City/County
381 Imperial Beach 25,864 $100,000 0.11759532%
382 La Mesa 60,418 $100,000 0.11759532%
383 Lemon Grove 27,420 $100,000 0.11759532%
384 National City 60,974 $100,000 0.11759532%
385 Oceanside 171,063 $265,971 0.31276912%
386 Poway 48,483 $100,000 0.11759532%
387 San Diego 1,368,395 $2,127,596 2.50195368%
388 San Marcos 94,530 $146,976 0.17283729%
389 Santee 59,227 $100,000 0.11759532%
390 Solana Beach 12,784 $100,000 0.11759532%
391 Vista 99,835 $155,225 0.18253687%
392 Unincorporated 509,873 $792,756 0.93224444%
393 San Francisco 831,703 $1,293,141 1.52067377%
San Joaquin 786,145 $1,431,953 1.68390916%
394 Escalon 7,264 $100,000 0.11759532%
395 Lathrop 35,080 $100,000 0.11759532%
396 Lodi 66,293 $103,073 0.12120916%
397 Manteca 88,803 $138,072 0.16236612%
398 Ripon 15,769 $100,000 0.11759532%
399 Stockton 319,731 $497,121 0.58459155%
400 Tracy 95,615 $148,663 0.17482109%
401 Unincorporated 157,590 $245,023 0.28813528%
San Luis Obispo 278,348 $888,339 1.04464507%
402 Arroyo Grande 17,922 $100,000 0.11759532%
403 Atascadero 30,206 $100,000 0.11759532%
404 El Paso de Robles 30,692 $100,000 0.11759532%
405 Grover Beach 12,467 $100,000 0.11759532%
406 Morro Bay 10,275 $100,000 0.11759532%
407 Pismo Beach 7,865 $100,000 0.11759532%
408 San Luis Obispo 47,788 $100,000 0.11759532%
409 Unincorporated 121,133 $188,339 0.22147783%
San Mateo 737,644 $2,345,128 2.75776054%
410 Atherton 6,678 $100,000 0.11759532%
411 Belmont 26,793 $100,000 0.11759532%
412 Brisbane 4,648 $100,000 0.11759532%
413 Burlingame 30,136 $100,000 0.11759532%
414 Colma 1,359 $100,000 0.11759532%
415 Daly City 101,471 $157,768 0.18552811%
416 East Palo Alto 28,586 $100,000 0.11759532%
417 Foster City 32,703 $100,000 0.11759532%
418 Half Moon Bay 11,226 $100,000 0.11759532%
419 Hillsborough 10,962 $100,000 0.11759532%
420 Menlo Park 32,478 $100,000 0.11759532%
421 Millbrae 22,487 $100,000 0.11759532%
422 Pacifica 37,082 $100,000 0.11759532%
423 Portola Valley 4,247 $100,000 0.11759532%
424 Redwood City 81,495 $126,709 0.14900428%
425 San Bruno 42,054 $100,000 0.11759532%
426 San Carlos 29,496 $100,000 0.11759532%
427 San Mateo 103,318 $160,640 0.18890514%
428 South San Francisco 64,323 $100,010 0.11760725%
429 Woodside 5,128 $100,000 0.11759532%
430 Unincorporated 60,974 $100,000 0.11759532%
431 Broadmoor Police Protection District 0 $100,000 0.11759532% Santa Barbara 440,557 $1,117,415 1.31402756%
432 Buellton 4,944 $100,000 0.11759532%
433 Carpinteria 12,711 $100,000 0.11759532%
434 Goleta 32,442 $100,000 0.11759532%
435 Guadalupe 8,515 $100,000 0.11759532%
2023-24 Enhancing Law Enforcement Activities Subaccount Citizens' Option for Public Safety
Front-line Law Enforcement Allocation for 2023-24

ATTACHMENT II
City/County
City/County
Population Estimates
1/1/2023
Projected Allocations by
City/County
Percent of Allocation by
City/County
436 Lompoc 43,493 $100,000 0.11759532%
437 Santa Barbara 85,418 $132,809 0.15617704%
438 Santa Maria 109,477 $170,216 0.20016617%
439 Solvang 5,669 $100,000 0.11759532%
440 Unincorporated 137,888 $214,390 0.25211243%
Santa Clara 1,886,079 $3,343,624 3.93194555%
441 Campbell 42,713 $100,000 0.11759532%
442 Cupertino 59,154 $100,000 0.11759532%
443 Gilroy 60,078 $100,000 0.11759532%
444 Los Altos 31,021 $100,000 0.11759532%
445 Los Altos Hills 8,380 $100,000 0.11759532%
446 Los Gatos 33,102 $100,000 0.11759532%
447 Milpitas 81,067 $126,044 0.14822173%
448 Monte Sereno 3,519 $100,000 0.11759532%
449 Morgan Hill 45,892 $100,000 0.11759532%
450 Mountain View 83,601 $129,984 0.15285486%
451 Palo Alto 67,287 $104,619 0.12302658%
452 San Jose 959,256 $1,491,462 1.75388983%
453 Santa Clara 132,476 $205,975 0.24221721%
454 Saratoga 30,567 $100,000 0.11759532%
455 Sunnyvale 156,317 $243,043 0.28580775%
456 Unincorporated 91,649 $142,497 0.16756971%
Santa Cruz 262,051 $598,187 0.70344010%
457 Capitola 9,625 $100,000 0.11759532%
458 Santa Cruz 63,224 $100,000 0.11759532%
459 Scotts Valley 11,859 $100,000 0.11759532%
460 Watsonville 49,876 $100,000 0.11759532%
461 Unincorporated 127,467 $198,187 0.23305882%
Shasta 179,436 $445,959 0.52442661%
462 Anderson 11,027 $100,000 0.11759532%
463 Redding 92,465 $143,766 0.16906167%
464 Shasta Lake 10,217 $100,000 0.11759532%
465 Unincorporated 65,727 $102,193 0.12017430%
Sierra 3,193 $200,000 0.23519064%
466 Loyalton 744 $100,000 0.11759532%
467 Unincorporated 2,449 $100,000 0.11759532%
Siskiyou 43,548 $1,100,000 1.29354852%
468 Dorris 839 $100,000 0.11759532%
469 Dunsmuir 1,663 $100,000 0.11759532%
470 Etna 668 $100,000 0.11759532%
471 Fort Jones 678 $100,000 0.11759532%
472 Montague 1,203 $100,000 0.11759532%
473 Mount Shasta 3,215 $100,000 0.11759532%
474 Tulelake 878 $100,000 0.11759532%
475 Weed 2,693 $100,000 0.11759532%
476 Yreka 7,825 $100,000 0.11759532%
477 Unincorporated 23,886 $100,000 0.11759532%
478 Lake Shastina Community Services District 0 $100,000 0.11759532% Solano 443,749 $1,031,730 1.21326618%
479 Benicia 26,180 $100,000 0.11759532%
480 Dixon 19,018 $100,000 0.11759532%
481 Fairfield 119,526 $185,840 0.21853961%
482 Rio Vista 9,988 $100,000 0.11759532%
483 Suisun City 28,471 $100,000 0.11759532%
484 Vacaville 100,806 $156,734 0.18431224%
485 Vallejo 121,658 $189,155 0.22243773%
486 Unincorporated 18,102 $100,000 0.11759532%
2023-24 Enhancing Law Enforcement Activities Subaccount Citizens' Option for Public Safety
Front-line Law Enforcement Allocation for 2023-24

ATTACHMENT II
City/County
City/County
Population Estimates
1/1/2023
Projected Allocations by
City/County
Percent of Allocation by
City/County
Sonoma 478,174 $1,275,017 1.49935995%
487 Cloverdale 8,787 $100,000 0.11759532%
488 Cotati 7,360 $100,000 0.11759532%
489 Healdsburg 10,914 $100,000 0.11759532%
490 Petaluma 58,321 $100,000 0.11759532%
491 Rohnert Park 43,693 $100,000 0.11759532%
492 Santa Rosa 174,523 $271,350 0.31909534%
493 Sebastopol 7,348 $100,000 0.11759532%
494 Sonoma 10,677 $100,000 0.11759532%
495 Windsor 25,560 $100,000 0.11759532%
496 Unincorporated 130,991 $203,666 0.23950205%
Stanislaus 545,939 $1,318,148 1.55008033%
497 Ceres 47,729 $100,000 0.11759532%
498 Hughson 7,565 $100,000 0.11759532%
499 Modesto 216,995 $337,386 0.39675053%
500 Newman 12,040 $100,000 0.11759532%
501 Oakdale 22,980 $100,000 0.11759532%
502 Patterson 24,317 $100,000 0.11759532%
503 Riverbank 24,695 $100,000 0.11759532%
504 Turlock 70,856 $110,168 0.12955209%
505 Waterford 9,042 $100,000 0.11759532%
506 Unincorporated 109,720 $170,594 0.20061047%
Sutter 98,952 $308,025 0.36222321%
507 Live Oak 9,515 $100,000 0.11759532%
508 Yuba City 69,478 $108,025 0.12703257%
509 Unincorporated 19,959 $100,000 0.11759532%
Tehama 64,271 $400,000 0.47038128%
510 Corning 7,993 $100,000 0.11759532%
511 Red Bluff 14,439 $100,000 0.11759532%
512 Tehama 425 $100,000 0.11759532%
513 Unincorporated 41,414 $100,000 0.11759532%
514 Trinity 15,939 $100,000 0.11759532%
Tulare 475,064 $1,138,722 1.33908375%
515 Dinuba 25,469 $100,000 0.11759532%
516 Exeter 10,184 $100,000 0.11759532%
517 Farmersville 10,151 $100,000 0.11759532%
518 Lindsay 12,474 $100,000 0.11759532%
519 Porterville 62,588 $100,000 0.11759532%
520 Tulare 69,677 $108,335 0.12739642%
521 Visalia 143,031 $222,386 0.26151582%
522 Woodlake 7,711 $100,000 0.11759532%
523 Unincorporated 133,779 $208,001 0.24459959%
Tuolumne 54,590 $200,000 0.23519064%
524 Sonora 5,067 $100,000 0.11759532%
525 Unincorporated 49,523 $100,000 0.11759532%
Ventura 825,653 $1,609,095 1.89222072%
526 Camarillo 69,309 $107,762 0.12672358%
527 Fillmore 16,899 $100,000 0.11759532%
528 Moorpark 35,151 $100,000 0.11759532%
529 Ojai 7,493 $100,000 0.11759532%
530 Oxnard 197,477 $307,040 0.36106410%
531 Port Hueneme 21,356 $100,000 0.11759532%
532 San Buenaventura 107,341 $166,895 0.19626074%
533 Santa Paula 31,423 $100,000 0.11759532%
534 Simi Valley 124,174 $193,067 0.22703795%
535 Thousand Oaks 122,967 $191,191 0.22483109%
536 Unincorporated 92,063 $143,141 0.16832666%
2023-24 Enhancing Law Enforcement Activities Subaccount Citizens' Option for Public Safety
Front-line Law Enforcement Allocation for 2023-24

ATTACHMENT II
City/County
City/County
Population Estimates
1/1/2023
Projected Allocations by
City/County
Percent of Allocation by
City/County
Yolo 220,880 $500,000 0.58797660%
537 Davis 64,097 $100,000 0.11759532%
538 West Sacramento 54,187 $100,000 0.11759532%
539 Winters 7,534 $100,000 0.11759532%
540 Woodland 59,881 $100,000 0.11759532%
541 Unincorporated 35,181 $100,000 0.11759532%
Yuba 82,677 $303,022 0.35633947%
542 Marysville 12,606 $100,000 0.11759532%
543 Wheatland 3,811 $100,000 0.11759532%
544 Unincorporated 66,260 $103,022 0.12114883%
CALIFORNIA TOTAL 38,940,231 $85,037,400 100.00000000%
CALIFORNIA CITY TOTAL 32,613,271 $73,280,863 86.17486301% City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-1216 Agenda Date: 12/12/2023

REPORT TO COUNCIL

SUBJECT
Action on an Agreement with BKF Engineers for Design Professional Services for the Lafayette Street Class IV Bikeway and Pavement Rehabilitation Project and Related Budget Amendment

COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure

BACKGROUND
On July 13, 2021, the Council approved a grant funding agreement with the Santa Clara Valley Transportation Authority (VTA) and related budget amendment for the Lafayette Street Class IV Bikeway Project (Project). The project was awarded grant funds through the 2016 Measure B Bicycle/Pedestrian Capital Projects Competitive Grant Program. The goal of this Project is to implement a Class IV bikeway (i.e. protected and buffered striped bicycle lanes) on Lafayette Street between Laurelwood Road and Reed Street, which is a high priority recommendation in the City’s Bicycle Plan.

On August 22, 2023, Council was presented several options (Attachment 1) for implementing bicycle lanes along Lafayette Street between Laurelwood Road and Reed Street. Council selected Option 1 which includes the installation of protected bicycle lanes through this corridor. As part of this approval, Council authorized parking removal through a pilot program along Lafayette Street between Memorex Drive and Reed Street in order to implement the protected bikeway. This portion of the project will be monitored for approximately one year after construction and staff will return to Council for a decision to either make the modifications permanent or to restore parking, remove the protected bicycle lanes and install a Class II (striped) bicycle lane on one side of the roadway and no bicycle lane (share the road) on the other side of the roadway. Due to the significant investment in bikeway infrastructure on the pavement surface, staff coordinated the pavement maintenance and rehabilitation needs identified for Lafayette Street in the City’s pavement program to be completed under this Project along with the bikeway improvements and has updated the Project name to the Lafayette Street Class IV Bikeway and Pavement Rehabilitation Project.

In order to prepare the Project for design and public bidding, the City needs to retain a consultant to provide engineering design services.

DISCUSSION
A formal selection process was utilized to solicit proposals from consultants to provide the necessary design professional services. In July 2023, a competitive Request for Proposals (RFP) was published on the City’s e-procurement platform. The City received proposals from seven firms: Bellecci & Associates, Inc., BKF Engineers, CSG Consultants, Inc., Deenscorp, Inc., HMH Engineers, Ruggeri- Jensen-Azar, and Wilsey Ham, Inc.

City of Santa Clara Printed on 12/8/2023Page 1 of 4
powered by Legistar™
23-1216 Agenda Date: 12/12/2023
A proposal review panel consisting of staff from the Design, Traffic, and Streets divisions of the Department of Public Works evaluated each proposal against the criteria set forth in the RFP, including responsiveness to the RFP, qualifications of the firm, qualifications and availability of key staff, project approach, and project schedule. Based on the panel’s evaluation, staff recommends awarding the agreement to BKF Engineers (BKF). BKF submitted the best proposal, demonstrated a strong project understanding, and provided a project approach that would maximize efficiency of the design services provided towards the Project. BKF also has a track record of successfully performing similar services for various public agencies.

The proposed agreement (Attachment 2) includes a negotiated scope of services and fees based upon the understanding of the work to be performed. The scope of services generally includes project management, preliminary engineering, agency permitting, construction documents, bidding support, construction support, and project close-out.

Staff recommends entering into the Agreement for Design Professional Services with BKF Engineers for the Lafayette Street Class IV Bikeway and Pavement Rehabilitation Project. Approval of this agreement will provide design professional services necessary to develop the design and construction documents to implement the Project. The Agreement includes prevailing wage requirements.

ENVIRONMENTAL REVIEW
This action is for design professional services and the action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act ("CEQA") Guidelines section 15378 as the action being considered does not commit the City to undertake the project and future discretionary approvals are required by the City to approve the project for construction.

Environmental review in accordance with CEQA will occur as part of the design and approval process.

FISCAL IMPACT
The proposed agreement is for a total not to exceed amount of $588,385, consisting of $534,895 for basic services and $53,490 for additional services.

The 2016 Measure B Bicycle/Pedestrian Capital Projects Competitive Grant Program award amount for the Project through VTA totals $1,197,000, consisting of $200,000 for the design phase and $997,000 for the construction phase. The City must provide an additional local funds match of at least 10 percent of the grant amounts. The grant through VTA is administered in a phased sequence under separate agreements each for the design phase and for the construction phase. In July 2021, the Council approved the design phase funding agreement with VTA and associated budget actions to appropriate the grant and local funds match into the Lafayette Class IV Bike Lanes capital project.

The City will become eligible for the construction phase funding agreement in the future after completion of preliminary engineering for the Project. Actions related to the construction phase grant agreement and associated budget actions will be brought forward to Council in the future after the completion of preliminary engineering.

Partial funding for the Project is budgeted in the FY 2023/24 Streets and Highways Capital Fund in the Lafayette Class IV Bike Lanes project and an additional $400,000 is needed at this time to fully fund the design phase and the proposed agreement with BKF. Prior appropriations of the design phase grant funds did not recognize the full $200,000 grant amount allowed under the VTA City of Santa Clara Printed on 12/8/2023Page 2 of 4
powered by Legistar™
23-1216 Agenda Date: 12/12/2023
agreement and a budget action is recommended to increase the grant appropriation by an additional $20,000 to bring it to the full amount. In addition, staff recommends transferring the remaining funds needed for the design phase in the amount of $380,000 from the Annual Street Maintenance and Rehabilitation Program project, which was previously funded by a transfer from the Gas Tax Fund, since this amount is associated with the pavement maintenance and rehabilitation component of the Project.

The name of the Project shown in the FY 2023/24 Capital Improvement Program Budget of Lafayette Street Class IV Bike Lanes Project will be renamed to Lafayette Street Class IV Bikeway and Pavement Rehabilitation Project in future budget cycles for consistency.

Budget Amendment
FY 2023/24
Current Increase/
(Decrease)
Revised
Streets and Highways Capital
Fund (533)
Revenue
Other Agencies Revenue (VTA
Measure B Grant)
$22,482,316 $20,000 $22,502,316
Expenditures
Lafayette Class IV Bike Lanes
project (533-1274)
$199,703 $400,000 $599,703
Annual Street Maintenance and
Rehabilitation Program project (533
-1235)
$19,868,026 ($380,000) $19,488,026

COORDINATION
This report has been coordinated with 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:[email protected]> or at the
public information desk at any City of Santa Clara public library.

RECOMMENDATION

1. Approve and authorize the City Manager to execute an agreement with BKF Engineers for the Lafayette Street Class IV Bikeway and Pavement Rehabilitation Project in the amount not-to- exceed $588,385 for design professional services required for the Project, in a final form approved by the City Attorney; and

2. Authorize the City Manager to make minor modifications, including time extensions, to the agreement, if needed; and
City of Santa Clara Printed on 12/8/2023Page 3 of 4
powered by Legistar™
23-1216 Agenda Date: 12/12/2023

3. Approve the FY 2023/24 budget amendments in the Streets and Highways Capital Fund to increase the Other Agencies Revenue estimate by $20,000 to recognize grant funding for the VTA Measure B Bicycle/Pedestrian Capital Project Competitive Grant Program, decrease the Annual Street Maintenance and Rehabilitation Program project by $380,000, and increase the Lafayette Class IV Bike Lanes project by $400,000 (five affirmative Council votes required to appropriate additional revenue).

Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan D. Grogan, City Manager

ATTACHMENTS

1. Roadway Options

2. Agreement
City of Santa Clara Printed on 12/8/2023Page 4 of 4
powered by Legistar™
Roadway Options
Option 1: Remove parking -
Install protected bike lanes on
both sides
Option 2: Keep parking - West
side has new bike lane. East side
has a shared lane.

Option 3: Keep parking - West
side has a shared lane. East side
has a new bike lane.

Option 4: Keep parking - No
changes and shared lanes on
both sides
PROPOSED-OPT ION 1-REMOVE PARKING. INSTALL BIKE LANES
0' 10'

WESTERLY BICYCLE VEH ICLE

PROP ERTY LANE LANE
LIN E
,a

LE FT TURN
LAN E
:~i]
,a ,.

VEH ICLE BICYCt.E

LAN E LAN E
PROPOSED-OPT ION 2-KEEP PARKING. INSTALL BIKE LANE ON WEST SIDE ...
,.
i
:LRLY

PROP ERTY
LINE
Q I i I ---=--+-----+------+------+--------+---------i]er----------; CURB TO CURB 8'
r ,. ,a

WESTERLY PARKING BICYC LE VEHICLE

PROP ERTY LAN E LAN E LANE

LINE LINE
PROPOSED-OPTION 3-KEEP PARKING. INSTALL BIKE LANE ON EAST SIDE ...

Q

CURB TO CU RB
,i]
,.
i
r \ ? ,a ,a .. IO" ,.

ERLY WESTERLY PAR KING SHAR ED VEHICLE LEFT TURN VEHIC LE VEHICLE B ICYCLE PROP ERTY PROPERTY LAN E LAN E LAN E LAN E LANE LANE LAN E LIN E LINE

EXISTING
...

Q

CURB TO CURB
J
,.
--...
,. 11 " 11" ,a 11" .,.

TERLY WESTERLY PARKING VEHICLE VEH ICLE LEFT TURN VEHICLE TRAVEL PROP ERTY PROP ERTY LAN E LAN E LA NE LAN E LAN E LAN E LINE LINE

Design Professional Agreement with BKF Engineers Page 1 Rev. 09-28-18

EBIX Insurance No. S200005277

AGREEMENT FOR DESIGN PROFESSIONAL SERVICES

BETWEEN THE

CITY OF SANTA CLARA, CALIFORNIA,
AND

BKF ENGINEERS
FOR

LAFAYETTE STREET CLASS IV BIKEWAY AND PAVEMENT REHABILITATION

PROJECT

PREAMBLE
This Agreement is entered into between the City of Santa Clara, California, a chartered California municipal corporation (City) and BKF Engineers, a California corporation, (Contractor). City and Contractor may be referred to individually as a “Party” or collectively as the “Parties” or the “Parties to this Agreement.” Throughout this Agreement “Contractor” and “Consultant” are used interchangeably and refer to Consultant.

RECITALS
A. City desires to secure the design professional services more fully described in this Agreement, at Exhibit A, entitled “Scope of Services”; B. “Design professional” includes licensed architects, licensed landscape architects, registered professional engineers and licensed professional land surveyors; C. Contractor represents that it, and its subcontractors, if any, have the professional qualifications, expertise, necessary licenses and desire to provide certain goods and/or required services of the quality and type which meet objectives and requirements of City; and,
D. The Parties have specified herein the terms and conditions under which such services will be provided and paid for.

The Parties agree as follows:

AGREEMENT TERMS AND CONDITIONS

1. AGREEMENT DOCUMENTS
The documents forming the entire Agreement between City and Contractor shall consist of these Terms and Conditions and the following Exhibits, which are hereby incorporated into this Agreement by this reference:

Exhibit A – Scope of Services

Design Professional Agreement with BKF Engineers Page 2 Rev. 09-28-18

Exhibit B – Schedule of Fees
Exhibit C – Insurance Requirements
Exhibit D – Labor Compliance Addendum
This Agreement, including the Exhibits set forth above, contains all the agreements, representations and understandings of the Parties, and supersedes and replaces any previous agreements, representations and understandings, whether oral or written. In the event of any inconsistency between the provisions of any of the Exhibits and the Terms and Conditions, the Terms and Conditions shall govern and control.

2. TERM OF AGREEMENT
Unless otherwise set forth in this Agreement or unless this paragraph is subsequently modified by a written amendment to this Agreement, the term of this Agreement shall begin on the date this Agreement is signed by both Parties and terminate on December 31, 2026. Services may commence upon City issuing a written notice to proceed.

3. SCOPE OF SERVICES & PERFORMANCE SCHEDULE
Contractor shall perform those Services specified in Exhibit A within the time stated in Exhibit A. Time is of the essence.

A. All reports, costs estimates, plans and other documentation which may be submitted or furnished by Contractor shall be approved and signed by an appropriate qualified licensed professional in the State of California.

B. The title sheet for specifications and reports, and each sheet of plans, shall bear the professional seal, certificate number, registration classification, expiration date of certificate and signature of the design professional responsible for their preparation.

4. WARRANTY
Contractor expressly represents that services covered by this Agreement shall be fit for the purpose intended, shall be free from defect and shall conform to the specifications, requirements and instructions upon which this Agreement is based. Contractor agrees to promptly replace or correct any incomplete, inaccurate or defective Services at no further cost to City when defects are due to the negligence, errors or omissions of Contractor. If Contractor fails to promptly correct or replace services, City may make corrections or replace services and charge Contractor for the cost incurred by City.

Design Professional Agreement with BKF Engineers Page 3 Rev. 09-28-18

5. QUALIFICATIONS OF CONTRA CTOR - STANDARD OF CARE
Contractor represents and maintains that it has the expertise in the professional calling necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and City expressly relies upon Contractor’s representations regarding its skills and knowledge. Contractor shall perform such Services and duties in conformance to and consistent with the professional standards of a specialist in the same discipline in the State of California.

6. COMPENSATION AND PAYMENT
In consideration for Contractor’s complete performance of Services, City shall pay Contractor for all materials provided and Services rendered by Contractor in accordance with Exhibit B, entitled “SCHEDULE OF FEES.” The maximum compensation of this Agreement is five hundred eighty-eight thousand three hundred eighty-five dollars ($588,385), subject to budget appropriations, which includes all payments that may be authorized for Services and for expenses, supplies, materials and equipment required to perform the Services. All work performed or materials provided in excess of the maximum compensation shall be at Contractor’s expense. Contractor shall not be entitled to any payment above the maximum compensation under any circumstance.

7. TERMINATION
A. Termination for Convenience. City s hall have the right to terminate this Agreement, without cause or penalty, by giving not less than Thirty (30) days’ prior written notice to Contractor.

B. Termination for Default. If Contractor fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, City may terminate this Agreement immediately upon written notice to Contractor.

C. Upon termination, each Party shall assi st the other in arranging an orderly transfer and close-out of services. As soon as possible following the notice of termination, but no later than ten (10) days after the notice of termination, Contractor will deliver to City all City information or material that Contractor has in its possession.

8. ASSIGNMENT AND SUBCONTRACTING
City and Contractor bind themselves, their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written approval of City. Contractor shall not hire subcontractors without express written permission from City.

Design Professional Agreement with BKF Engineers Page 4 Rev. 09-28-18

Contractor shall be as fully responsible to City for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons directly employed by it.

9. NO THIRD PA RTY BENEFICIARY
This Agreement shall not be construed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action under this Agreement for any cause whatsoever.

10. INDEPENDENT CONTRACTOR
Contractor and all person(s) employed by or contracted with Contractor to furnish labor and/or materials under this Agreement are independent contractors and do not act as agent(s) or employee(s) of City. Contractor has full rights to manage its employees in their performance of Services under this Agreement.

11. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data, drawings, descriptions, documents, discussions or other information developed or received by or for Contractor and all other written information submitted to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor and shall not, without the prior written consent of City, be used for any purposes other than the performance of the Services nor be disclosed to an entity not connected with performance of the Services. Nothing furnished to Contractor which is otherwise known to Contractor or becomes generally known to the related industry shall be deemed confidential.

12. OWNERSHIP OF MATERIAL
All material, which shall include, but not be limited to, data, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports, designs, technology, programming, works of authorship and other material developed, collected, prepared or caused to be prepared under this Agreement shall be the property of City but Contractor may retain and use copies thereof. City shall not be limited in any way or at any time in its use of said material. However, Contractor shall not be responsible for damages resulting from the use of said material for work other than Project, including, but not limited to, the release of this material to third parties.

13. RIGHT OF CITY TO INSP ECT RECORDS OF CONTRACTOR
City, through its authorized employees, representatives or agents shall have the right during the term of this Agreement and for four (4) years from the date of final payment for goods or services provided under this Agreement, to audit the books and records of Contractor for the purpose of verifying any and all charges made by Contractor in connection with Contractor compensation under this

Design Professional Agreement with BKF Engineers Page 5 Rev. 09-28-18

Agreement, including termination of Contractor. Contractor agrees to maintain sufficient books and records in accordance with generally accepted accounting principles to establish the correctness of all charges submitted to City. Any expenses not so recorded shall be disallowed by City. Contractor shall bear the cost of the audit if the audit determines that there has been a substantial billing deviation in excess of five (5) percent adverse to the City.

Contractor shall submit to City any and all reports concerning its performance under this Agreement that may be requested by City in writing. Contractor agrees to assist City in meeting City’s reporting requirements to the State and other agencies with respect to Contractor’s Services hereunder.

14. HOLD HARMLESS/INDEMNIFICATION
To the extent permitted by law, Contractor agrees to protect, defend, hold harmless and indemnify City, its City Council, commissions, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including all costs and attorney’s fees in providing a defense to any such claim or other action, and whether sounding in law, contract, tort, or equity, to the extent arising out of, pertaining to, or related to the negligence, recklessness, or willful misconduct of the Contractor, its employees, subcontractors, or agents in the performance, or non-performance, of Services under this Agreement. With respect to claims alleging Contractor’s professional negligence or professional liability, Contractor’s duty to defend obligation shall be met by reimbursing an indemnified party for indemnified party’s costs of defense following a determination of Contractor’s proportionate percentage of fault.

15. INSURANCE REQUIREMENTS
During the term of this Agreement, and for any time period set forth in Exhibit C, Contractor shall provide and maintain in full force and effect, at no cost to City, insurance policies as set forth in Exhibit C.

16. WAIVER
Contractor 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. Neither City’s review, acceptance nor payments for any of the Services required under this Agreement shall be constructed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement.

Design Professional Agreement with BKF Engineers Page 6 Rev. 09-28-18

17. NOTICES
All notices to the Parties shall, unless otherwise requested in writing, be sent to City addressed as follows:

City of Santa Clara
Attention: Department of Public Works
1500 Warburton Avenue
Santa Clara, CA 95050
and by e-mail at [email protected], and
[email protected]

And to Contractor addressed as follows:

BKF Engineers
Attn: Gordon Sweet, Principal and Vice President
1730 N. First Street, #600
San Jose, CA 95112
and by e-mail at [email protected]
The workday the e-mail was sent shall control the date notice was deemed given.

An e-mail transmitted after 1:00 p.m. on a Friday shall be deemed to have been transmitted on the following business day.

18. COMPLIANCE WITH LAWS
Contractor shall comply with all applicable laws and regulations of the federal, state and local government, including but not limited to “The Code of the City of Santa Clara, California” (“SCCC”). In particular, Contractor’s attention is called to the regulations regarding Campaign Contributions (SCCC Chapter 2.130), Lobbying (SCCC Chapter 2.155), Minimum Wage (SCCC Chapter 3.20), Business Tax Certificate (SCCC section 3.40.060), and Food and Beverage Service Worker Retention (SCCC Chapter 9.60), as such Chapters or Sections may be amended from time to time or renumbered. Additionally Contractor has read and agrees to comply with City’s Ethical Standards (http://santaclaraca.gov/home/showdocument?id=58299).

19. CONFLICTS OF INTEREST
Contractor certifies that to the best of its knowledge, no City officer, employee or authorized representative has any financial interest in the business of Contractor and that no person associated with Contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. Contractor is familiar with the provisions of California Government Code section 87100 and

Design Professional Agreement with BKF Engineers Page 7 Rev. 09-28-18

following, and certifies that it does not know of any facts which would violate these code provisions. Contractor will advise City if a conflict arises.

20. FAIR EMPLOYMENT
Contractor shall not discriminate against any employee or applicant for employment because of race, sex, color, religion, religious creed, national origin, ancestry, age, gender, marital status, physical disability, mental disability, medical condition, genetic information, sexual orientation, gender expression, gender identity, military and veteran status, or ethnic background, in violation of federal, state or local law.

21. NO USE OF CITY NAME OR EMBLEM
Contractor shall not use City’s name, insignia, or emblem, or distribute any information related to services under this Agreement in any magazine, trade paper, newspaper or other medium without express written consent of City.

22. GOVERNING LAW 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, or if appropriate, in the United States District Court, Northern District of California, San Jose, California.

23. SEVERABILITY CLAUSE
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.

24. AMENDMENTS
This Agreement may only be modified by a written amendment duly authorized and executed by the Parties to this Agreement.

25. COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but both of which shall constitute one and the same instrument.

The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives.

CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
Dated: Approved as to Form: ---- ---------
GLEN R. GOOGINS
City Attorney
"CITY"
JOVAN D. GROGAN
City Manager
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771

BKF ENGINEERS
a California corporation
Dated: -7"'-~P~ ~ ~ - ----=-~ ~--\-:;;,t,, .,._~ ~~== ­ By (Signature): ~;;;;;;;;t.,,...;;~~'!!!!!!!!!!!~ ~::::;:__k --\------..J...~ ­ Name: --:::a;.,..- ...::::::~:....!....!,~~ ~__:;~ ~~~~~ ..1,_ _ Title: 12.t .t I PAL.. , .,P,e ... I~
Principal Place of
Business Address: /? ':=: ht2ST <;.~~ -¼Jose: e.t -rrui.

Email Address: ~ee-f(« t::J~<!t:r>tltA.

Telephone: (Jt()f)) 'fG,7 -'-Tl '-12-
Fax: (~ to~!<:t~ff 119
Design Professional Agreement with BKF Engineers
Rev. 09-28-18