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MONTHLY FINANCIAL STATUS REPORT
September 2023
1 City of Santa Clara
Financial Status Report as of September 30, 2023
This report summarizes the City’s financial performance for the month ended September 30, 2023.
Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds. Financial information included in this report is unaudited.
Economic Outlook
After three quarters of presenting both recession and no recession scenarios in its Forecasts, the October 2023 UCLA Anderson Forecast presents a single forecast scenario “with a weak economy in 2024 followed by a return to trend growth rates, albeit below trend GDP levels, in 2025”. While a recession is no longer predicted, the higher interest rates are expected to restrain growth in 2024.
Substantial risks to the forecast are also identified, including a potential shutdown of the government, the impact of geopolitical events, and the impact of the election on economic policies in 2025.1 Quarterly Real GDP Growth, Seasonally Adjusted Annual Rates
In its latest Forecast, The Conference Board predicts a very short and shallow recession early next year. “This outlook is associated with numerous factors, including, elevated inflation, high interest rates, dissipating pandemic savings, rising consumer debt, lower government spending, and the resumption of mandatory student loan repayments. We forecast that real GDP will grow by 2.2 percent in 2023, and then fall to 0.8 percent in 2024.”2
1 UCLA Anderson Forecast, October 2023, As Recession Fades Into the Future: The U.S. Economic Outlook 2 https:///www.conference-board.org/research/us-forecast, The Conference Board Economic Forecast for the US Economy, Updated October 12, 2023
2 City of Santa Clara
Financial Status Report as of September 30, 2023
On a national level, the unemployment rate increased from 3.8% in September 2023 to 3.9% in October 2023. This rate was well below the record setting high of 14.7% in April 2020, but above the pre- pandemic unemployment rate of 3.5%. In October, the number of unemployed persons slightly increased from 6.4 million to 6.5 million.3
In the third quarter 2023, the Gross Domestic Product (GDP) increased at an annual rate of 4.9% according to the “advance” estimate released by the Bureau of Economic Analysis. This follows a GDP increase of 2.1% in the second quarter 2023. The estimated increase in the third quarter reflects increases in consumer spending, exports, state and local government spending, federal government spending, private inventory investment, and residential fixed investment that were partially offset by a decrease in nonresidential fixed investment.4
3 https://www.bls.gov/news.release/pdf/empsit.pdf
4 https://www.bea.gov/sites/default/files/2023-10/tech3q23_adv.pdf
3 City of Santa Clara
Financial Status Report as of September 30, 2023
At the state level, the California unemployment rate increased slightly from 4.6% in August 2023 to
4.7% in September 2023. This rate is higher compared to the 4.0% rate in September 2022. Since the current economic expansion began in April 2020, California has added 3.2 million jobs, regaining the
2.7 million jobs lost as a result of the pandemic.5
The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 3.3% in September 2023, down from a revised 3.9% in August 2023, but above the September 2022 estimate of 2.4%. Between September 2022 and September 2023, employment in this region increase by 18,400 jobs, or 1.6% The largest increases were in private education and health services (up 10,300 jobs), leisure and hospitality (up 9,000 jobs), and government (up 2,400 jobs).
Notable employment reductions were in professional and business services (down 4,000 jobs) and manufacturing (down 2,800 jobs).6
General Fund
The General Fund is the major operating fund for the City and includes multiple programs, services, and activities for the residents and businesses of the City. The adopted budget for operating revenues and expenditures for fiscal year 2023/24 was $281.8 million. The amended budget for revenues and expenditures was adjusted to $287.4 million to reflect carryover encumbrances from fiscal year 2022/23 and various budget amendments approved by the City Council through September 2023.
While it is very early in the fiscal year and limited data is available, General Fund revenues and expenditures are currently tracking with estimated levels.
5 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-september-2023/ 6 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of September 30, 2023
General Fund Revenues
As of September 30, 2023, $27.9 million or 10.2% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $15.0 million have occurred as budgeted.
This very low collection level through September is largely due to the timing of payments. In some categories, a portion of the revenues received through September account for activity that occurred in FY 2022/23 and those revenues are accrued back to that year. In other cases, such as property tax, most payments are scheduled to occur later in the fiscal year.
Adopted Budget
Amended
Budget
Actual Through
9/30/2023
Percentage
Received
Actual Through
9/30/2022
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,524,000$ 60,524,000$ 5,013,575$ 8.28% 4,966,516$ 47,059$ 0.95% Property Tax 85,800,000 85,800,000 184,513 0.22% 219,652 (35,139) -16.00% Transient Occupancy Tax 21,275,000 21,275,000 1,319,673 6.20% 1,756,416 (436,743) -24.87% Other Taxes 6,750,000 6,750,000 667,689 9.89% 426,167 241,522 56.67% Total Taxes 174,349,000 174,349,000 7,185,450 4.12% 7,368,751 (183,301) -2.49%
LICENSES & PERMITS
Business Licenses 6,000,000 6,000,000 1,029,725 17.16% 215,614 814,111 377.58% Fire Operation Permits 2,000,000 2,000,000 340,223 17.01% 480,700 (140,477) -29.22% Miscellaneous Permits 69,000 69,000 98,442 142.67% 30,867 67,575 218.92% Total Licenses & Permits 8,069,000 8,069,000 1,468,390 18.20% 727,181 741,209 101.93% FINES & PENALTIES 1,225,000 1,225,000 604,657 49.36% 61,307 543,350 886.28% INTERGOVERNMENTAL 520,000 520,000 9,654 1.86% 80,566 (70,912) -88.02% CHARGES FOR SERVICES 29,314,768 29,662,668 7,270,797 24.51% 8,173,296 (902,499) -11.04% SILICON VALLEY POWER TRANSFER 32,000,000 32,000,000 8,227,562 25.71% 7,160,972 1,066,590 14.89%
USE OF MONEY & PROPERTY
Interest 3,500,000 3,500,000 (677,143) -19.35% 126,324 (803,467) -636.04% Rent 12,397,660 12,397,660 3,157,866 25.47% 2,718,503 439,363 16.16% Total Use of Money & Property 15,897,660 15,897,660 2,480,723 15.60% 2,844,827 (364,104) -12.80% MISCELLANEOUS REVENUES 180,000 180,000 79,362 44.09% 1,824,889 (1,745,527) -95.65%
LAND PROCEED - - - N/A - - N/A
OTHER FINANCING SOURCES
Operating Transfer In - Storm Drain 1,454,000 1,454,000 1,454,000 100.00% 1,454,000 - 0.00% Operating Transfer In - Reserves 2,772,275 8,012,113 8,012,113 100.00% 33,702,079 (25,689,966) -76.23% Operating Transfer In - Fund Balances(1) 4,759,683 4,759,683 4,759,683 100.00% 4,484,726 274,957 6.13% Operating Transfer In - Miscellaneous 746,044 746,044 746,044 100.00% 2,370,374 (1,624,330) -68.53% Total Other Financing Sources 9,732,002 14,971,840 14,971,840 100.00% 42,011,179 (27,039,339) -64.36%
STADIUM OPERATION
Charges for Services 9,278,128 9,278,128 561,121 6.05% 2,172,678 (1,611,557) -74.17% Rent and Licensing 1,230,000 1,230,000 - 0.00% 507,777 (507,777) -100.00% Total Stadium Operation 10,508,128 10,508,128 561,121 5.34% 2,680,455 (2,119,334) -79.07% TOTAL GENERAL FUND 281,795,558$ 287,383,296$ 42,859,556$ 14.91% 72,933,423$ (30,073,867)$ -41.23% (1) The Operating Transfer In - Fund Balances includes the carryover encumbrances of open purchase orders as of June 30, 2023 and mid year budget amendment from reserves.
Function
CITY OF SANTA CLARA
GENERAL FUND
REVENUES OVERVIEW AND COMPARISON BY TYPE
FISCAL YEAR 2023/24 PY REVENUE COMPARISON
5 City of Santa Clara
Financial Status Report as of September 30, 2023
General Fund Revenues
Sales Tax: The City of Santa Clara sales tax rate is 9.125%, of which the City receives 1.0%. As of September 30, 2023, approximately $5.0 million has been collected, which is consistent with prior year collection levels. Given the timing of payments, the sales tax payments reflected are for the month of July 2023.
Property Tax: Property tax receipts totaling $0.1 million were received through September 2023. The majority of property tax revenue is collected in February and April each year. Based on initial information from the County of Santa Clara, property tax receipts are projected to end the year above the Adopted Budget estimate of $85.8 million.
Transient Occupancy Tax (TOT): TOT is calculated as a percentage of City hotel/motel room charges. The City’s TOT rate is currently 11.5% and will increase to 12.5% effective January 1, 2024.
This rate increase was factored into the development of the FY 2023/24 Adopted Budget. Through September 30, 2023, approximately $1.3 million was received, which is 24.9% lower than prior year receipts. This lower collection level primarily reflects differences in the timing of payments.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $0.7 million through September, which is 56.7% higher than last fiscal year’s collection levels. Receipts through September reflect franchise tax collections of $0.6 million and approximately $0.1 million in documentary transfer tax revenue.
Licenses & Permits: Includes business licenses, fire operation permits, and miscellaneous permits and fees. Licenses and permits revenue collections are tracking below par with receipts totaling $1.5 million, or 18.2% of the $8.1 million budget. However, this represents a nearly 102% increase compared to prior year collection levels, primarily in the business license category. The updated Business License Tax is being implemented this fiscal year with the new methodology. With this transition and the need to re-register every business, the timeline to submit payments has been extended which has impacted actual receipts in the first few months. Staff will closely monitor results from the implementation to determine if any budget adjustments are necessary based on the actual collections.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue collected in this category through September was $0.6 million, or 49.4% of the budgeted estimate. Collections in this category are tracking well above the budget and the prior year due to the resumption of the assessment of late fees that had previously been waived due to COVID-19.
Intergovernmental: Includes motor vehicle fees, state homeowner tax relief, state mandated reimbursement and redistribution of land sale proceeds and ground leases from the Successor Agency.
Through September 30, 2023, $9,654 was collected in this category.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through
6 City of Santa Clara
Financial Status Report as of September 30, 2023
September, collections of approximately $7.3 million are tracking at par at 24.5% of the budget. This reflects an 11% decrease compared to last year’s collections through the same period of $8.2 million.
This large decrease is a result of lower collections for engineering fees, planning and zoning fees, as well as fire construction permitting fees.
Silicon Valley Power Transfer: In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund. Through September, $8.2 million has been transferred.
Transfers throughout the year are based on the budgeted estimate and will be trued up at the end of the fiscal year based on actual performance.
Use of Money & Property: Includes realized investment income and rental income. Through September, $2.5 million has been collected, compared to $2.8 million last fiscal year. This decrease is primarily due to higher prior year accruals in the interest category, which results in the negative amount under the interest category in the current year.
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through September 30, 2023, collections of $79,000 are significantly lower than prior year levels. This is attributable to the one-time settlement between the City, the Santa Clara Stadium Authority, and the Forty-Niners SC Stadium Company LLC and Forty Niners Stadium Management Company LLC (collectively, the Forty-Niners) recorded last fiscal year.
Stadium Operation: Through September 2023, revenues of $0.6 million are tracking well below par at
5.3% of the budget due to the timing of reimbursements for the costs incurred by the City. Revenues are also significantly below prior year collection levels. Last year, the payment of older public safety invoices was submitted as part of the August 2022 legal settlement. Outstanding public safety invoices from 2020 and 2021 were paid in September 2022 as a result of the settlement.
7 City of Santa Clara
Financial Status Report as of September 30, 2023
General Fund Expenditures
As of September 30, 2023, $76.6 million or 26.7% of the General Fund operating budget had been expended. Overall, expenditures in the General Fund are within budgeted levels through September.
Departmental expenditures totaled $61.7 million, or 23.1% of the budget, which is below the par level of 25% of the budget. Transfers of $11.6 million have occurred as budgeted.
Adopted Budget
Amended
Budget
Actual Through
9/30/2023
Percentage
Use d
Actual Through
9/30/2022
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 15,123,531$ 15,640,480$ 2,499,761$ 15.98% 1,164,971$ 1,334,790$ 114.58% City Council 1,124,281 1,131,037 282,965 25.02% 150,004 132,961 88.64% City Clerk 1,947,261 2,121,865 344,072 16.22% 554,046 (209,974) -37.90% City Manager 5,410,204 5,938,327 852,846 14.36% 1,162,661 (309,815) -26.65% City Attorney 3,076,516 3,196,951 630,789 19.73% 790,741 (159,952) -20.23% Human Resources 4,300,090 4,464,113 785,034 17.59% 881,394 (96,360) -10.93% Finance 19,140,702 19,939,776 4,176,852 20.95% 4,142,280 34,572 0.83% Total General Government 50,122,585 52,432,549 9,572,319 18.26% 8,846,097 726,222 8.21% PUBLIC WORKS 24,857,521 26,175,381 5,702,914 21.79% 5,532,057 170,857 3.09% COMMUNITY DEVELOPMENT 5,121,256 5,227,061 1,277,915 24.45% 1,084,002 193,913 17.89% PARKS AND RECREATION 21,933,152 22,711,221 5,306,810 23.37% 5,051,867 254,943 5.05%
PUBLIC SAFETY
Fire 62,616,032 63,222,036 16,697,448 26.41% 17,232,293 (534,845) -3.10% Police 85,598,562 85,946,468 20,669,417 24.05% 20,162,027 507,390 2.52% Total Public Safety 148,214,594 149,168,504 37,366,865 25.05% 37,394,320 (27,455) -0.07% LIBRARY 11,135,937 11,229,696 2,498,581 22.25% 2,530,015 (31,434) -1.24% DEPARTMENTAL TOTAL 261,385,045 266,944,412 61,725,404 23.12% 60,438,358 1,287,046 2.13%
OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 1,198,809 1,198,809 1,198,809 100.00% 38,809 1,160,000 2989.00% Operating Transfer Out - Debt Services 1,402,440 1,402,440 1,402,440 100.00% 1,402,275 165 0.01% Operating Transfer Out - Maintenance Dtrct 942,413 942,413 942,413 100.00% 842,700 99,713 11.83% Operating Transfer Out - Cemetery 796,000 796,000 796,000 100.00% 870,000 (74,000) -8.51% Operating Transfer Out - CIP 7,305,499 7,305,499 7,305,499 100.00% 8,641,613 (1,336,114) -15.46% Total Other Financing Uses 11,645,161 11,645,161 11,645,161 100.00% 11,795,397 (150,236) -1.27% STADIUM OPERATION 8,765,352 8,793,722 3,239,740 36.84% 2,035,243 1,204,497 59.18% TOTAL GENERAL FUND 281,795,558$ 287,383,295$ 76,610,304$ 26.66% 74,268,998$ 2,341,307$ 3.15% Function
CITY OF SANTA CLARA
GENERAL FUND
EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2023/24 PY EXPENDITURES COMPARISON
8 City of Santa Clara
Financial Status Report as of September 30, 2023
General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances by program.
Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. Through September 30, 2023, expenditures totaled $2.5 million, or 16% of the budget. These expenditures are below the par level of 25%, but above prior year levels. This is a result of higher property insurance costs that have been directly budgeted under Non-Departmental, as opposed to allocated out amongst the departments citywide.
City Attorney: Actual expenditures through September totaled approximately $0.6 million, which is
19.7% of the budget, which is below par. Spending is significantly below the total expenditures through the same time last fiscal year by 20.2%. This decrease is due to lower expenditures in the outside legal counsel services.
City Clerk: Through September, actual expenditures were tracking below budget at $0.3 million or approximately 16.2% of the budget. This expenditure level reflects a 38% decrease in spending compared to last fiscal year due to one-time Granicus costs that are paid every other year.
City Council: Through September, expenditures were at 25% of budget, which is at par. Compared to the same period through last fiscal year, this reflects a significant increase in expenditures. This is a result of the reallocation of 1.0 Assistant to the City Manager position from the City Manager’s Office as approved as part of the FY 2023/24 and FY 2024/25 Adopted Operating Budget.
City Manager: The actual expenditures through September 30, 2023 totaled $0.9 million, or 14.4% of the budget, which is below par for this time of the year. Expenditures are approximately 26.7% lower compared with the spending level through the same period last fiscal year. This is a result of vacancy savings within the department and the reallocation of 1.0 Assistant to the City Manager position to the City Council as mentioned above.
Community Development Department: This department consists of three divisions: Planning, Building, and Housing and Community Services. The Building Division of this department is reflected in the Building Development Services Fund, which falls under the special revenue section of this report.
Through September, departmental expenditures for the Planning and Housing and Community Services divisions totaled $1.3 million, or 24.5% of the budget, which is at par. This expenditure level is 18% above the prior year is a result of higher salaries and benefits costs and higher contractual services spending in the current year.
Finance Department: Through September, the Department’s expenditures totaled $4.2 million, or 21% of the budget, which is below par. This expenditure level is consistent with prior year levels.
Fire Department: Through September, actual expenditures totaled $16.7 million, or 26.4% of the budget, which is slightly above par. These expenditures reflect a 3.1% decrease from expenditures through the same period last fiscal year. This is primarily because, as approved as part of the FY 2023/24 and FY 2024/25 Adopted Operating Budget, approximately 9.0 FTE were reallocated to the
9 City of Santa Clara
Financial Status Report as of September 30, 2023
newly established Fire Development Services Fee Fund. These charges are reflected under the special revenue section of this report. Overtime expenditures are tracking at 44.3% of the budget, which is above par for this time of year. While this overtime figure is high, it is important to note that overtime is used to backfill for vacant positions and the vacancy savings offset a portion of the overtime costs.
Library Department: Through September, actual expenditures totaled $2.5 million, or 22.3% of the budget, which is slightly below par, but slightly higher than expenditure levels last fiscal year. The Library continues to hire staff and fill vacancies to restore library hours.
Parks and Recreation Department: Through September, actual expenditures totaled $5.3 million, or
23.4% of the budget, which is slightly below par, but slightly higher than prior year actuals of $5.1 million. This is primarily due to higher spend in the salaries and benefits and utilities categories.
Police Department: Expenditures through September are tracking slightly below par at $20.7 million, or 24% of the budget. This expenditure level is 2.5% above the prior year.
Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures totaled $3.2 million through September, which is significantly higher than prior year levels. This is primarily due to higher personnel spend, particularly in overtime. Events at the Stadium during September included one NFL game as well as the Ed Sheeran concert.
10 City of Santa Clara
Financial Status Report as of September 30, 2023
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of September 30, 2023. The amended budget reflects carryover encumbrances from fiscal year 2022/23 and budget amendments approved by the City Council through September 2023. Effective July 1, 2023, development related services in the Fire Department have been reallocated from the General Fund to the newly established Fire Development Services Fund, reflected below.
Revenues totaled approximately $5.6 million, while expenditures totaled $5.4 million through the end of September. Overall, revenues and expenditures are tracking below par of 25%. In the Housing Successor Fund, the expenditures are significantly lower compared to last fiscal year due to a one-time special disbursement for a housing loan that occurred in July 2022.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 9/30/2023 received 9/30/2022 Prior Year Change Housing Authority Fund 252,495$ 252,495$ 63,247$ 25.05% 25,167$ 38,080$ 151.31% City Affordable Housing Fund 1,166,720 1,166,720 50,231 4.31% 100,884 (50,653) -50.21% Housing Successor Fund 1,306,326 1,306,326 170,252 13.03% 398,917 (228,665) -57.32% Housing and Urban Development 3,106,041 3,106,041 382,263 12.31% 398,960 (16,697) -4.19% Building Development Services Fee
Fund
15,611,000 15,611,000 4,024,759 25.78% 4,919,941 (895,182) -18.19% Fire Development Services Fee
Fund
2,935,000 2,935,000 877,639 29.90% 0 877,639 N/A
TOTAL 24,377,582$ 24,377,582$ 5,568,391$ 22.84% 5,843,869$ (275,478)$ -4.71% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 9/30/2023 use d 9/30/2022 Prior Year Change Housing Authority Fund 457,193$ 518,659$ 42,189$ 8.13% 57,597$ (15,408)$ -26.75% City Affordable Housing Fund 6,683,926 7,435,503 277,139 3.73% (1,290,070) 1,567,209 -121.48% Housing Successor Fund 873,227 1,216,887 257,090 21.13% 1,773,105 (1,516,015) -85.50% Housing and Urban Development 3,993,723 4,753,782 399,273 8.40% 568,143 (168,870) -29.72% Building Development Services Fee
Fund
13,689,592 17,218,230 3,632,981 21.10% 3,140,147 492,834 15.69% Fire Development Services Fee
Fund
3,109,073 3,109,073 767,376 24.68% 0 767,376 N/A
TOTAL 28,806,734$ 34,252,134$ 5,376,048$ 15.70% 4,248,922$ 1,127,126$ 26.53%
PRIOR YEAR EXPENDITURE COMPARISON
CITY OF SANTA CLARA
SPECIAL REVENUE FUNDS
REVENUE AND EXPENDITURE - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2023/24 PRIOR YEAR REVENUE COMPARISON EXPENDITURES - FISCAL YEAR 2023/24
11 City of Santa Clara
Financial Status Report as of September 30, 2023
Governmental Capital Improvement Funds
The table below lists the revenue for selected capital improvement funds. The amended budget reflects current year appropriations, prior year carryover, and budget amendments approved through September 2023. As of September 30, 2023, the capital fund revenue totaled $0.8 million.
REVENUES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/30/2023 Use d Parks & Recreation -$ 4,280,995$ 4,280,995$ 132,063$ 3.08% Streets & Highways 5,495,232 15,988,284 21,483,516 102,859 0.48% Storm Drain 1,454,000 - 1,454,000 362,995 24.97% Related Santa Clara Developer 977,582 - 977,582 140,313 14.35% Patrick Henry Drive Infrastructure
Improvement Fund
140,486 - 140,486 - 0.00% Tasman East Specific Infrastructure
Improvement Fund
- - - 14,616 N/A TOTAL 8,067,300$ 20,269,279$ 28,336,579$ 752,846$ 2.66%
CITY OF SANTA CLARA
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
The table below lists the total amended budgeted amounts for expenditures in the Capital Improvement Funds. Similar to the revenue table, the amended expenditure budgets consist of current year appropriations, prior year carryover encumbrance balances in Governmental Capital Improvement Funds, and budget amendments approved through September 2023. As of September 30, 2023, capital fund expenditures totaled $9.9 million, or 6.5% of the amended budget, well below par of 25%.
As part of the adoption of the FY 2023/24 and FY 2024/25 biennial operating budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2023.
Necessary additional adjustments to the capital carryover amounts will be included as part of the Budgetary Year-End Report for FY 2022/23, anticipated to be brought forward for City Council approval in December 2023.
12 City of Santa Clara
Financial Status Report as of September 30, 2023
EXPENDITURES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/30/2023 Used Parks & Recreation 2,719,457$ 38,184,533$ 40,903,990$ 3,237,443$ 7.91% Streets & Highways 17,776,700 62,604,298 80,380,998 5,424,671 6.75% Storm Drain 807,414 4,002,049 4,809,463 67,942 1.41% Fire 427,374 1,303,898 1,731,272 72,665 4.20% Library - 301,105 301,105 406 0.13% Public Buildings 1,590,019 9,319,499 10,909,518 567,705 5.20% General Gov't - Other 941,000 8,688,990 9,629,990 373,611 3.88% City Affordable Housing Capital Fund - 1,600,000 1,600,000 - 0.00% Related Santa Clara Developer 977,582 523,109 1,500,691 161,064 10.73% Patrick Henry Drive Infrastructure
Improvement Fund
71,281 - 71,281 4,029 5.65% Tasman East Specific Infrastructure
Improvement Fund
27,330 1,423,145 1,450,475 4,029 0.28% TOTAL 25,338,157$ 127,950,626$ 153,288,783$ 9,913,565$ 6.47%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
13 City of Santa Clara
Financial Status Report as of September 30, 2023
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of September 30, 2023. Overall, revenues and expenditures are tracking below budgeted levels.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 9/30/2023 received 9/30/2022 Prior Year Change Electric Utility Fund 1,008,222,211$ 1,008,222,211$ 144,823,775$ 14.36% 124,963,195$ 19,860,580$ 15.89% Water Utility Fund 60,726,490 60,726,490 13,272,180 21.86% 12,097,373 1,174,807 9.71% Sewer Utility Fund 73,500,825 78,500,825 8,947,880 11.40% 8,583,181 364,699 4.25% Cemetery Fund 750,000 750,000 112,497 15.00% 194,821 (82,324) -42.26% Solid Waste Utility Fund 39,577,957 39,577,957 7,740,949 19.56% 7,056,681 684,268 9.70% Water Recycling Fund 7,668,868 7,668,868 2,038,776 26.59% 1,458,174 580,602 39.82% TOTAL REVENUE 1,190,446,351$ 1,195,446,351$ 176,936,057$ 14.80% 154,353,425$ 22,582,632$ 14.63% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 9/30/2023 Use d 9/30/2022 Prior Year Change Electric Utility Fund 681,590,706$ 687,147,483$ 138,554,412$ 20.16% 123,309,086$ 15,245,326$ 12.36% Water Utility Fund 54,015,131 56,158,029 8,756,636 15.59% 10,029,986 (1,273,350) -12.70% Sewer Utility Fund 53,980,961 54,497,527 9,342,530 17.14% 7,570,761 1,771,769 23.40% Cemetery Fund 1,534,349 1,534,349 294,071 19.17% 352,678 (58,607) -16.62% Solid Waste Utility Fund 38,782,622 42,314,984 7,603,240 17.97% 7,142,932 460,308 6.44% Water Recycling Fund 8,234,584 8,234,584 343,078 4.17% 1,532,646 (1,189,568) -77.62% TOTAL - Operating
Appropriations
838,138,353$ 849,886,956$ 164,893,967$ 19.40% 149,938,089$ 14,955,878$ 9.97%
CITY OF SANTA CLARA
ENTERPRISE OPERATING FUNDS
REVENUES AND EXPENSES - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2023/24 PRIOR YEAR REVENUE COMPARISON PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2023/24
Both revenues and expenditures are tracking higher than the prior year levels. In the Electric Utility Fund, higher debt retirement and resource costs were incurred this fiscal year. In the Solid Waste Utility Fund, there were higher refuse collection charges, alongside higher garbage collection expenses. The significant drop in expenditure levels in the Water Recycling Fund is due to the timing of resource/production invoice payments.
Revenues in the electric (which also includes the Electric Debt Service Fund), water, and sewer utility (which also includes the Sewer Debt Service Fund) and water recycling funds are primarily from customer service charges. The activity levels for these customer service charges also impact the resource and production costs on the expenditure side for these funds. The lower the revenue from customer service charges, the lower the expenditures in the resource and production category.
14 City of Santa Clara
Financial Status Report as of September 30, 2023
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actual revenue through September 30, 2023 totaled $1.9 million, consisting primarily of developer contributions in the Electric Utility Fund and sewer fees in the Sewer Utility Fund. Enterprise capital fund expenses totaled $23 million, or 4% of the amended budget. Similar to the general government capital funds, capital funds were carried over from FY 2022/23 as part of the FY 2023/24 and FY 2024/25 budget adoption process for those projects that were not expected to be completed by June 30, 2023. Additional necessary adjustments to the capital carryover amounts based on actual year-end expenditures will be brought forward for City Council approval in December 2023, as part of the budgetary year-end report for FY 2022/23.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/30/2023 Use d Electric Utility Fund 37,980,480$ 40,599,727$ 78,580,207$ 1,819,942$ 2.32% Sewer Utility Fund - - - 115,266 N/A Solid Waste Utility Fund 258,000 - 258,000 3,813 1.48% Convention Center Capital
Fund
- - - 6,032 N/A TOTAL - Revenue 38,238,480$ 40,599,727$ 78,838,207$ 1,945,053$ 2.47% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/30/2023 Use d Electric Utility Fund 355,072,203$ 161,038,869$ 516,111,072$ 18,452,387$ 3.58% Street Lighting (1) 125,000 3,452,509 3,577,509 21,075 0.59% Water Utility Fund 6,114,502 5,316,334 11,430,836 638,843 5.59% Sewer Utility Fund 13,721,802 28,349,075 42,070,876 3,329,769 7.91% Cemetery Fund - 245,335 245,335 - 0.00% Solid Waste Utility Fund 765,000 271,756 1,036,756 249,198 24.04% Water Recycling Fund 50,000 - 50,000 4,033 8.07% Convention Center Capital
Fund
- 2,146,482 2,146,482 332,992 15.51%
TOTAL - CIP
Appropriations
375,848,506$ 200,820,360$ 576,668,866$ 23,028,297$ 3.99%
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
SUMMARY OF EXPENSES
EXPENSES - FISCAL YEAR 2023/24
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
REVENUES - FISCAL YEAR 2023/24
(1) Street Lighting fund is part of Electric Capital Improvement Funds
15 City of Santa Clara
Financial Status Report as of September 30, 2023
Fund Reserves
By policy, City Council established the City’s General Contingency Reserve, under which reserves for Budget Stabilization and Capital Projects were established. • Budget Stabilization Reserve is set aside for weathering economic downturns, emergency financial crisis, or disaster situations. The reserve target is equal to the expenditures of the City’s General Fund operations for three months (90-day or 25% General Fund Adopted Operating Budget). In FY 2023/24, the City Council approved an exception to the policy to allow the Reserve to a minimum of 15% of expenditures.
• Capital Projects Reserve earmarks funds for the Capital Improvement Program.
Other General Reserves and Enterprise Fund Reserves included in this report are highlighted as follows:
• Technology Fee Reserve is set aside to update and/or replace the City’s aging technology and to ensure internal controls are in compliance with current business standard and legal requirements.
• Land Sale Reserve is net proceeds from the sale of City-owned land, with interest earned on these funds available to be appropriated for General Fund operating expenditures. This reserve is available for appropriation by City Council action.
• The Electric Utility Rate Stabilization Reserve and Operations and Maintenance Reserve assures sufficient operating cash is available to cover day-to-day expenses, address unforeseen cost increases or revenue shortfalls, and ensure debt service coverage. • The Replacement and Improvement Reserve in the Water and Sewer Utility Funds is for future capital improvement.
The table below summarizes select reserve balances.
16 City of Santa Clara
Financial Status Report as of September 30, 2023
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 47,592,520$
Capital Projects Reserve 6,132,290
Reserve for Programmed Capital Projects 986,657
Land Sale Reserve 18,481,037
Technology Fee Reserve 2,581,146
Electric Rate Stabilization Fund Reserve 56,776,613$
Electric Operations and Maintenance Reserve 150,765,556 Replacement & Improvement 303,090$
TOTALS 75,773,650$ 207,542,169$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
September 30, 2023
Donations to the City of Santa Clara
Donations received by department during the month of September 2023 and for fiscal year 2023/24 are shown in the table below.
Department Sep-23
Fis cal Year
2023/24
Year To Date Designated Use
City Manager's Office - 201 Help Your Neighbor Parks & Recreation - 8,000 Case Management Parks & Recreation 0 133 Roberta Jones Jr. Theatre
Parks & Recreation 7,725 20,150 Wade Brummal
Police 0 75,000 TEAM 200
TOTALS 7,725$ 103,484$