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MONTHLY FINANCIAL STATUS REPORT
October 2023
1 City of Santa Clara
Financial Status Report as of October 31, 2023
This report summarizes the City’s financial performance for the month ended October 31, 2023.
Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds. Financial information included in this report is unaudited.
Economic Outlook
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, and the resumption of mandatory student loan repayments. We forecast that real GDP will grow by 2.4 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 November 15, 2023
2 City of Santa Clara
Financial Status Report as of October 31, 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 5.2% according to the “second” estimate released by the Bureau of Economic Analysis. This follows a GDP increase of 2.1% in the second quarter 2023. The GDP increase reflected increases in consumer spending, private inventory investment, exports, state and local government spending, federal government spending, residential fixed investment, and nonresidential fixed investment. Compared to the second quarter, the GDP acceleration in the third quarter primarily reflected accelerations in consumer spending and private inventory investment and an upturn in exports that were partially offset by a deceleration in nonresidential fixed investment.4
3 https://www.bls.gov/news.release/pdf/empsit.pdf
4 https://www.bea.gov/news/2023/gross-domestic-product-second-estimate-corporate-profits-preliminary-estimate-third
3 City of Santa Clara
Financial Status Report as of October 31, 2023
At the state level, the California unemployment rate increased slightly from 4.7% in September 2023 to
4.8% in October 2023. This rate is higher compared to the 4.1% rate in October 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 3.8% in October 2023, up from a revised 3.7% in September 2023, and above the October 2022 estimate of 2.5%. Between October 2022 and October 2023, employment in this region increase by 11,800 jobs, or 1.0%. The largest increases were in private education and health services (up 11,500 jobs) and leisure and hospitality (up 8,700 jobs). Notable employment reductions were in professional and business services (down 5,100 jobs) and manufacturing (down 5,000 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 $287.4 million to reflect carryover encumbrances from fiscal year 2022/23 and various budget amendments approved by the City Council through October 2023.
While it is very early in the fiscal year and limited data is available, General Fund revenues and expenditures are currently tracking with estimated levels.
5 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-october-2023/ 6 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of October 31, 2023
General Fund Revenues
As of October 31, 2023, $46.0 million or 16.9% 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 October is largely due to the timing of payments. In some categories, a portion of the revenues received through October 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
10/31/2023
Percentage
Received
Actual Through
10/31/2022
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,524,000$ 60,524,000$ 10,564,847$ 17.46% 9,818,899$ 745,948$ 7.60% Property Tax 85,800,000 85,800,000 3,289,823 3.83% 2,964,873 324,950 10.96% Transient Occupancy Tax 21,275,000 21,275,000 2,831,072 13.31% 3,928,582 (1,097,510) -27.94% Other Taxes 6,750,000 6,750,000 1,041,865 15.44% 927,930 113,935 12.28% Total Taxes 174,349,000 174,349,000 17,727,607 10.17% 17,640,284 87,323 0.50%
LICENSES & PERMITS
Business Licenses 6,000,000 6,000,000 1,430,304 23.84% 283,484 1,146,820 404.54% Fire Operation Permits 2,000,000 2,000,000 479,556 23.98% 644,230 (164,674) -25.56% Miscellaneous Permits 69,000 69,000 111,499 161.59% 30,974 80,525 259.98% Total Licenses & Permits 8,069,000 8,069,000 2,021,359 25.05% 958,688 1,062,671 110.85% FINES & PENALTIES 1,225,000 1,225,000 874,030 71.35% 80,789 793,241 981.87% INTERGOVERNMENTAL 520,000 520,000 80,186 15.42% 1,648,076 (1,567,890) -95.13% CHARGES FOR SERVICES 29,314,768 29,666,268 9,633,887 32.47% 10,843,813 (1,209,926) -11.16% SILICON VALLEY POWER TRANSFER 32,000,000 32,000,000 10,970,083 34.28% 9,547,962 1,422,121 14.89%
USE OF MONEY & PROPERTY
Interest 3,500,000 3,500,000 (409,667) -11.70% 74,723 (484,390) -648.25% Rent 12,397,660 12,397,660 4,171,331 33.65% 3,484,534 686,797 19.71% Total Use of Money & Property 15,897,660 15,897,660 3,761,664 23.66% 3,559,257 202,407 5.69% MISCELLANEOUS REVENUES 180,000 180,000 101,667 56.48% 1,842,431 (1,740,764) -94.48%
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 9,278,128 715,189 7.71% 2,173,565 (1,458,376) -67.10% Rent and Licensing 1,230,000 1,230,000 69,313 5.64% 507,777 (438,464) -86.35% Total Stadium Operation 10,508,128 10,508,128 784,502 7.47% 2,681,342 (1,896,840) -70.74% TOTAL GENERAL FUND 281,795,558$ 287,386,896$ 60,926,825$ 21.20% 90,813,821$ (29,886,996)$ -32.91% (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 October 31, 2023
General Fund Revenues
Sales Tax: The City of Santa Clara sales tax rate is 9.125%, of which the City receives 1.0%. As of October 31, 2023, approximately $10.6 million has been collected, which is slightly higher than prior year collection levels. While not reflected in the data through October, true-up information for the third quarter of 2023 was received from the State in November and reflected a decrease of 6.2% when compared to the third quarter 2022. This is the first decline after four quarters of growth experienced in FY 2022/23. Given the strong performance last fiscal year, receipts can decline by approximately 6% in the remaining three quarters of FY 2023/24 and still meet the budgeted estimate. Internet sales represents a sizeable amount of the City’s sales tax revenue. The County pool, which includes internet sales, accounts for approximately 20% of the sales tax the City receives..
Property Tax: Property tax receipts totaling $3.3 million were received through October 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 October 31, 2023, approximately $2.8 million was received, which is 28% 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 $1.0 million through October, which is 12.3% higher than last fiscal year’s collection levels. Receipts through October reflect franchise tax collections of $0.8 million and approximately $0.2 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 $2.0 million, or 25% of the $8.1 million budget. However, this represents a nearly 111% 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 October was $0.9 million, or 71.4% 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.
6 City of Santa Clara
Financial Status Report as of October 31, 2023
Through October 31, 2023, $80,186 was collected in this category. Last year, this collection level was significantly higher at $1.6 million due to the receipt of a $1.5 million settlement payment from the City of San Jose regarding the North San Jose Development Project.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through October, collections of approximately $9.6 million are tracking at par at 32.7% of the budget. This reflects an 11.2% decrease compared to last year’s collections through the same period of $10.8 million. This large decrease is a result of lower collections for engineering fees and planning and zoning fees. Additionally, effective July 1, 2023, the Fire Development Services Fund was established and fire construction permitting fees are now booked in this fund, instead of the General Fund.
Silicon Valley Power Transfer: In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund. Through October, $11.0 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 October, $3.8 million has been collected, compared to $3.6 million last fiscal year. This increase is primarily due to higher rental income revenues, including right-of-way and Related lease payments.
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through October 31, 2023, collections of $0.1 million 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 October 2023, revenues of $0.8 million are tracking well below par at
7.5% of the budget due to the timing of reimbursements for the costs incurred by the City.
Reimbursements usually take between three to six months from the event date due to the timing of third-party invoices and payment from the Stadium Manager. 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 October 31, 2023
General Fund Expenditures
As of October 31, 2023, $99.0 million or 34.4% of the General Fund operating budget had been expended. Overall, expenditures in the G eneral Fund are within budgeted levels through October.
Departmental expenditures totaled $82.8 million, or 31% of the budget, which is below the par level of
33.3% of the budget. Transfers of $11.6 million have occurred as budgeted.
Adopted Budget
Amended
Budget
Actual Through
10/312023
Percentage
Use d
Actual Through
10/31/2022
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 15,123,531$ 15,640,480$ 3,156,215$ 20.18% 1,433,687$ 1,722,528$ 120.15% City Council 1,124,281 1,131,037 376,926 33.33% 209,862 167,064 79.61% City Clerk 1,947,261 2,121,865 554,726 26.14% 652,098 (97,372) -14.93% City Manager 5,410,204 5,938,327 1,118,432 18.83% 1,503,874 (385,442) -25.63% City Attorney 3,076,516 3,196,951 843,231 26.38% 1,043,419 (200,188) -19.19% Human Resources 4,300,090 4,464,113 1,084,556 24.29% 1,183,933 (99,377) -8.39% Finance 19,140,702 19,939,776 5,614,387 28.16% 5,665,128 (50,741) -0.90% Total General Government 50,122,585 52,432,549 12,748,473 24.31% 11,692,001 1,056,472 9.04% PUBLIC WORKS 24,857,521 26,178,981 7,813,620 29.85% 7,360,760 452,860 6.15% COMMUNITY DEVELOPMENT 5,121,256 5,227,061 1,668,888 31.93% 1,491,664 177,224 11.88% PARKS AND RECREATION 21,933,152 22,711,221 7,236,240 31.86% 7,074,558 161,682 2.29%
PUBLIC SAFETY
Fire 62,616,032 63,222,036 22,262,626 35.21% 22,779,947 (517,321) -2.27% Police 85,598,562 85,946,468 27,713,868 32.25% 26,969,565 744,303 2.76% Total Public Safety 148,214,594 149,168,504 49,976,494 33.50% 49,749,512 226,982 0.46% LIBRARY 11,135,937 11,229,696 3,347,030 29.81% 3,552,556 (205,526) -5.79% DEPARTMENTAL TOTAL 261,385,045 266,948,012 82,790,745 31.01% 80,921,051 1,869,694 2.31%
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 4,515,793 51.35% 3,100,175 1,415,618 45.66% TOTAL GENERAL FUND 281,795,558$ 287,386,895$ 98,951,699$ 34.43% 95,816,623$ 3,135,076$ 3.27% 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 October 31, 2023
General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances by department.
Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. Through October 31, 2023, expenditures totaled $3.2 million, or 20.2% of the budget. These expenditures are below the par level of 33.3%, 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 October totaled approximately $0.8 million, which is 26.4% of the budget, which is below par. Spending is significantly below the total expenditures through the same time last fiscal year by 19.2%. This decrease is due to lower expenditures in the outside legal counsel services.
City Clerk: Through October, actual expenditures were tracking below budget at $0.6 million or approximately 26.1% of the budget. This expenditure level reflects a 15% decrease in spending compared to last fiscal year due to one-time Granicus costs that are paid every other year.
City Council: Through October, expenditures were at 33.3% of budget, which is at par. This expenditure level is significantly above the prior year due to 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 October 31, 2023 totaled $1.1 million, or 18.8% 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 October, departmental expenditures for the Planning and Housing and Community Services divisions totaled $1.7 million, or 32% of the budget, which is at par. This expenditure level is 12% 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 October, the Department’s expenditures totaled $5.6 million, or 28.2% of the budget, which is below par. This expenditure level is consistent with prior year levels.
Fire Department: Through October, actual expenditures totaled $22.3 million, or 35.2% of the budget, which is slightly above par. These expenditures reflect a 2.3% 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 newly established
9 City of Santa Clara
Financial Status Report as of October 31, 2023
Fire Development Services Fee Fund. These charges are reflected under the special revenue section of this report. Overtime expenditures are tracking at 58% 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. Overtime expenditures are expected to decrease through the remainder of the year due to the availability of the newly trained firefighters that will provide relief staffing. The recruits are anticipated to be available for this relief staffing beginning December 8, 2023.
Library Department: Through October, actual expenditures totaled $3.3 million, or 29.8% 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 October 31, 2023, actual expenditures totaled $7.2 million, or 31.9% of the budget, which is slightly below par, but slightly higher than prior year actuals of $7.1 million. This is primarily due to higher spend in the salaries and benefits and utilities categories.
Police Department: Expenditures through October are tracking slightly below par at $27.7 million, or
32.3% of the budget. This expenditure level is 2.8% 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 $4.5 million through October, which is significantly higher than prior year levels. This is primarily due to higher personnel spend, particularly in overtime. Events at the Stadium during October included three NFL games.
10 City of Santa Clara
Financial Status Report as of October 31, 2023
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of October 31, 2023. The amended budget reflects carryover encumbrances from fiscal year 2022/23 and budget amendments approved by the City Council through October 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 $7.1 million, while expenditures totaled $6.9 million through the end of October. Overall, revenues and expenditures are tracking below par of 33.3%. 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. Last fiscal year, there was also a negative expenditure in the City Affordable Housing Fund dur to an accounting change in the disbursements category.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 10/31/2023 Received 10/31/2022 Prior Year Change Housing Authority Fund 252,495$ 252,495$ 68,444$ 27.11% 31,878$ 36,566$ 114.71% City Affordable Housing Fund 1,166,720 1,166,720 110,383 9.46% 175,908 (65,525) -37.25% Housing Successor Fund 1,306,326 1,306,326 268,006 20.52% 418,521 (150,515) -35.96% Housing and Urban Development 3,106,041 3,106,041 450,553 14.51% 421,218 29,335 6.96% Building Development Services Fee
Fund
15,611,000 15,611,000 4,953,806 31.73% 7,231,988 (2,278,182) -31.50% Fire Development Services Fee
Fund
2,935,000 2,935,000 1,243,226 42.36% 0 1,243,226 N/A
TOTAL 24,377,582$ 24,377,582$ 7,094,418$ 29.10% 8,279,513$ (1,185,095)$ -14.31% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 10/31/2023 Use d 10/31/2022 Prior Year Change Housing Authority Fund 457,193$ 518,659$ 58,696$ 11.32% 65,411$ (6,715)$ -10.27% City Affordable Housing Fund 6,683,926 7,435,503 343,555 4.62% (1,261,599) 1,605,154 -127.23% Housing Successor Fund 873,227 1,216,887 336,115 27.62% 2,543,318 (2,207,203) -86.78% Housing and Urban Development 3,993,723 4,753,782 484,518 10.19% 743,924 (259,406) -34.87% Building Development Services Fee
Fund
13,689,592 17,218,230 4,642,455 26.96% 4,378,702 263,753 6.02% Fire Development Services Fee
Fund
3,109,073 3,109,073 1,020,766 32.83% 0 1,020,766 N/A
TOTAL 28,806,734$ 34,252,134$ 6,886,105$ 20.10% 6,469,756$ 416,349$ 6.44%
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 October 31, 2023
Governmental Capital Improvement Funds
The table below lists the revenue for selected capital improvement funds. The amended budget reflects current year appropriations, prior year carryover, and budget amendments approved through October 2023. As of October 31, 2023, the capital fund revenue totaled $2.8 million.
REVENUES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 10/31/2023 Received Parks & Recreation -$ 4,280,995$ 4,280,995$ 266,504$ 6.23% Streets & Highways 8,265,432 15,988,284 24,253,716 1,612,818 6.65% Storm Drain 4,454,000 - 4,454,000 484,080 10.87% Related Santa Clara Developer 977,582 - 977,582 371,617 38.01% Patrick Henry Drive Infrastructure
Improvement Fund
140,486 - 140,486 - 0.00% Tasman East Specific Infrastructure
Improvement Fund
- - - 29,574 N/A TOTAL 13,837,500$ 20,269,279$ 34,106,779$ 2,764,593$ 8.11%
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 October 2023. As of October 31, 2023, capital fund expenditures totaled $14.1 million, or 8.8% of the amended budget, well below par of 33.3%.
As part of the adoption of the FY 2023/24 and FY 2024/25 biennial operating budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2023.
Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2022/23 approved by the City Council approval on December 12, 2023.
12 City of Santa Clara
Financial Status Report as of October 31, 2023
EXPENDITURES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 10/31/2023 Use d Parks & Recreation 2,719,457$ 38,184,533$ 40,903,990$ 3,827,691$ 9.36% Streets & Highways 20,546,900 62,604,298 83,151,198 8,351,874 10.04% Storm Drain 3,807,414 4,002,049 7,809,463 277,022 3.55% Fire 427,374 1,303,898 1,731,272 74,627 4.31% Library - 301,105 301,105 406 0.13% Public Buildings 1,590,019 9,319,499 10,909,518 804,221 7.37% General Gov't - Other 941,000 8,688,990 9,629,990 540,104 5.61% City Affordable Housing Capital Fund - 1,600,000 1,600,000 - 0.00% Related Santa Clara Developer 977,582 523,109 1,500,691 177,285 11.81% Patrick Henry Drive Infrastructure
Improvement Fund
71,281 - 71,281 5,753 8.07% Tasman East Specific Infrastructure
Improvement Fund
27,330 1,423,145 1,450,475 5,753 0.40% TOTAL 31,108,357$ 127,950,626$ 159,058,983$ 14,064,736$ 8.84%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
13 City of Santa Clara
Financial Status Report as of October 31, 2023
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of October 31, 2023. Overall, revenues and expenditures are tracking below budgeted levels.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 10/31/2023 Received 10/31/2022 Prior Year Change Electric Utility Fund 1,008,222,211$ 1,008,222,211$ 204,364,823$ 20.27% 175,310,083$ 29,054,740$ 16.57% Water Utility Fund 60,726,490 60,726,490 18,768,164 30.91% 16,990,409 1,777,755 10.46% Sewer Utility Fund 73,500,825 78,500,825 26,885,699 34.25% 12,833,326 14,052,373 109.50% Cemetery Fund 750,000 750,000 153,218 20.43% 237,827 (84,609) -35.58% Solid Waste Utility Fund 39,577,957 39,577,957 11,054,835 27.93% 10,097,835 957,000 9.48% Water Recycling Fund 7,668,868 7,668,868 2,945,654 38.41% 2,312,612 633,042 27.37% TOTAL REVENUE 1,190,446,351$ 1,195,446,351$ 264,172,393$ 22.10% 217,782,092$ 46,390,301$ 21.30% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 10/31/2023 Use d 10/31/2022 Prior Year Change Electric Utility Fund 681,590,706$ 687,147,483$ 183,889,966$ 26.76% 176,116,683$ 7,773,283$ 4.41% Water Utility Fund 54,015,131 56,158,029 16,189,477 28.83% 14,591,317 1,598,160 10.95% Sewer Utility Fund 53,980,961 54,497,527 10,448,643 19.17% 8,232,433 2,216,210 26.92% Cemetery Fund 1,534,349 1,534,349 387,520 25.26% 486,851 (99,331) -20.40% Solid Waste Utility Fund 38,782,622 42,314,984 10,927,569 25.82% 9,228,797 1,698,772 18.41% Water Recycling Fund 8,234,584 8,234,584 467,666 5.68% 1,608,732 (1,141,066) -70.93% TOTAL - Operating
Appropriations
838,138,353$ 849,886,956$ 222,310,841$ 26.16% 210,264,813$ 12,046,028$ 5.73%
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 addition to higher customer service and renewable energy collections. 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 October 31, 2023
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actual revenue through October 31, 2023 totaled $9.8 million, consisting primarily of developer contributions in the Electric Utility Fund and sewer fees in the Sewer Utility Fund. Enterprise capital fund expenses totaled $26.0 million, or 4.5% of the amended budget. Similar to the general government capital funds, capital funds were carried over from FY 2022/23 as part of the FY 2023/24 and FY 2024/25 budget adoption process for those projects that were not expected to be completed by June 30, 2023. Additional necessary adjustments to the capital carryover amounts based on actual year-end expenditures were brought forward as part of the budgetary year-end report for FY 2022/23 approved by the City Council on December 12, 2023.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 10/31/2023 Received Electric Utility Fund 38,500,092$ 40,599,727$ 79,099,819$ 9,606,410$ 12.14% Sewer Utility Fund - - - 145,376 N/A Solid Waste Utility Fund 258,000 - 258,000 3,813 1.48% Convention Center Capital
Fund
- - - 6,032 N/A TOTAL - Revenue 38,758,092$ 40,599,727$ 79,357,819$ 9,761,631$ 12.30%
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
REVENUES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 10/31/2023 Use d Electric Utility Fund 355,591,815$ 161,038,869$ 516,630,684$ 21,007,272$ 4.07% Street Lighting (1) 125,000 3,452,509 3,577,509 28,418 0.79% Water Utility Fund 6,114,502 5,316,334 11,430,836 851,413 7.45% Sewer Utility Fund 13,721,802 28,349,075 42,070,876 3,456,923 8.22% Cemetery Fund - 245,335 245,335 - 0.00% Solid Waste Utility Fund 765,000 271,756 1,036,756 344,553 33.23% Water Recycling Fund 50,000 - 50,000 4,152 8.30% Convention Center Capital
Fund
- 2,146,482 2,146,482 332,992 15.51%
TOTAL - CIP
Appropriations
376,368,118$ 200,820,360$ 577,188,478$ 26,025,723$ 4.51%
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
SUMMARY OF EXPENSES
EXPENSES - 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 October 31, 2023
Fund Reserves
By policy, City Council established the City’s General Contingency Reserve, under which reserves for Budget Stabilization and Capital Projects were established. • Budget Stabilization Reserve is set aside for weathering economic downturns, emergency financial crisis, or disaster situations. The reserve target is equal to the expenditures of the City’s General Fund operations for three months (90-day or 25% General Fund Adopted Operating Budget). In FY 2023/24, the City Council approved an exception to the policy to allow the Reserve to a minimum of 15% of expenditures.
• Capital Projects Reserve earmarks funds for the Capital Improvement Program.
Other General Reserves and Enterprise Fund Reserves included in this report are highlighted as follows:
• Technology Fee Reserve is set aside to update and/or replace the City’s aging technology and to ensure internal controls are in compliance with current business standard and legal requirements.
• Land Sale Reserve is net proceeds from the sale of City-owned land, with interest earned on these funds available to be appropriated for General Fund operating expenditures. This reserve is available for appropriation by City Council action.
• The Electric Utility Rate Stabilization Reserve and Operations and Maintenance Reserve assures sufficient operating cash is available to cover day-to-day expenses, address unforeseen cost increases or revenue shortfalls, and ensure debt service coverage. • The Replacement and Improvement Reserve in the Water and Sewer Utility Funds is for future capital improvement.
The table below summarizes select reserve balances.
16 City of Santa Clara
Financial Status Report as of October 31, 2023
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 47,542,820$
Capital Projects Reserve 5,891,290
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 75,482,950$ 207,542,169$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
October 31, 2023
Donations to the City of Santa Clara
Donations received by department during the month of October 2023 and for fiscal year 2023/24 are shown in the table below.
Department Oct-23
Fis cal Year
2023/24
Year To Date Designated Use
City Manager's Office - 201 Help Your Neighbor Parks & Recreation 250 8,250 Case Management Parks & Recreation - 133 Roberta Jones Jr. Theatre Parks & Recreation 10,350 30,500 Wade Brummal Police - 75,000 TEAM 200
TOTALS 10,600$ 114,084$