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MONTHLY FINANCIAL STATUS REPORT
December 2023
1 City of Santa Clara
Financial Status Report as of December 31, 2023
This report summarizes the City’s financial performance for the month ended December 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
While there are varying forecasts, economic growth is expected to be constrained in 2024. The December 2023 UCLA Anderson Forecast is almost unchanged from its October 2023 and continues to assume no recession. “The oft-predicted but never seen “recession next quarter” has now faded in the face of expansionary fiscal policy, new national industrial policy, and a consumer who is happy to continue spending.” 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 “tepid start to 2024. While the prospects for a soft landing have risen we continue to believe that volatility awaits the US economy in this year. We forecast two quarters of slightly negative GDP growth in Q2 and Q3 2024 that will be broadly felt across the economy. However, late 2024 and 2025 should usher in a period of lower volatility and greater
1 UCLA Anderson Forecast, December 2023, 1995 Déjà Vu All Over Again: The U.S. Economic Outlook
2 City of Santa Clara
Financial Status Report as of December 31, 2023
predictability. Inflation and interest rates should normalize and GDP growth should converge to potential at just under 2 percent.”2
On a national level, the unemployment rate remained unchanged at 3.7% between November and December 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 December, the number of unemployed persons was unchanged at 6.3 million.3
In the fourth quarter 2023, the Gross Domestic Product (GDP) increased at an annual rate of 3.3% according to the “advance” estimate released by the Bureau of Economic Analysis. This follows a GDP increase of 4.9% in the third quarter 2023. The GDP increase reflected increases in consumer spending, exports, state and local government spending, nonresidential fixed investment, federal government spending, private inventory investment, and residential fixed investment. Compared to the third quarter, the GDP deceleration in the fourth quarter primarily reflected slowdowns in inventory investment, federal government spending, residential investments, and consumer spending.4
2 https:///www.conference-board.org/research/us-forecast, The Conference Board Economic Forecast for the US Economy, Updated January 11, 2024
3 https://www.bls.gov/news.release/pdf/empsit.pdf
4 https://www.bea.gov/sites/default/files/2024-01/tech4q23-adv.pdf
3 City of Santa Clara
Financial Status Report as of December 31, 2023
At the state level, the California unemployment increased from 4.9% in November 2023 to 5.1% in December 2023. This rate is higher compared to the 4.1% rate in December 2022. From December 2022 to December 2023, California added 311,000 nonfarm jobs, an increase of 1.7%.5
The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 4.0% in December 2023, up slightly from 3.9% in November 2023, and above the December 2022 estimate of 2.4%. Between December 2022 and December 2023, employment in this region increase by 10,500 jobs, or 0.9%. The largest increases were in private education and health services (up 10,900 jobs) and leisure and hospitality (up 8,500 jobs). Notable employment reductions were in manufacturing (down 3,600 jobs), information (down 3,500 jobs) and construction (down 2,600 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 $290 million to reflect carryover encumbrances from fiscal year 2022/23 and various budget amendments approved by the City Council through December 2023. This budget also accounts for items approved by the City Council on December 12, 2023, as part of the FY 2022/23 Budget Year-End Report.
5 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-december-2023/ 6 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of December 31, 2023
General Fund Revenues
As of December 31, 2023, $99.8 million or 36.3% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $15.0 million have occurred as budgeted.
Adopted Budget
Amended
Budget
Actual Through
12/31/2023
Percentage
Received
Actual Through
12/31/2022
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,524,000$ 60,524,000$ 19,961,470$ 32.98% 21,401,195$ (1,439,725)$ -6.73% Property Tax 85,800,000 87,143,000 26,990,697 30.97% 24,964,596 2,026,101 8.12% Transient Occupancy Tax 21,275,000 21,275,000 6,208,270 29.18% 6,270,863 (62,593) -1.00% Other Taxes 6,750,000 6,750,000 1,946,435 28.84% 1,907,136 39,299 2.06% Total Taxes 174,349,000 175,692,000 55,106,872 31.37% 54,543,790 563,082 1.03%
LICENSES & PERMITS
Business Licenses 6,000,000 6,000,000 2,499,506 41.66% 430,508 2,068,998 480.59% Fire Operation Permits 2,000,000 2,000,000 809,905 40.50% 957,531 (147,626) -15.42% Miscellaneous Permits 69,000 69,000 3,200 4.64% 33,136 (29,936) -90.34% Total Licenses & Permits 8,069,000 8,069,000 3,312,611 41.05% 1,421,175 1,891,436 133.09% FINES & PENALTIES 1,225,000 1,225,000 1,215,516 99.23% 122,618 1,092,898 891.30% INTERGOVERNMENTAL 520,000 520,000 208,153 40.03% 253,516 (45,363) -17.89% CHARGES FOR SERVICES 29,314,768 29,816,268 15,546,311 52.14% 15,834,348 (288,037) -1.82% SILICON VALLEY POWER TRANSFER 32,000,000 32,000,000 16,455,125 51.42% 14,321,943 2,133,182 14.89%
USE OF MONEY & PROPERTY
Interest 3,500,000 3,500,000 283,276 8.09% 521,055 (237,779) -45.63% Rent 12,397,660 13,431,960 6,134,222 45.67% 5,216,896 917,326 17.58% Total Use of Money & Property 15,897,660 16,931,960 6,417,498 37.90% 5,737,951 679,547 11.84% MISCELLANEOUS REVENUES 180,000 180,000 177,749 98.75% 1,869,738 (1,691,989) -90.49%
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 8,097,132 8,097,132 100.00% 36,719,079 (28,621,947) -77.95% 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 15,056,859 15,056,859 100.00% 45,028,179 (29,971,320) -66.56%
STADIUM OPERATION
Charges for Services 9,278,128 9,278,128 1,375,924 14.83% 2,447,480 (1,071,556) -43.78% Rent and Licensing 1,230,000 1,230,000 69,313 5.64% 629,787 (560,474) -88.99% Total Stadium Operation 10,508,128 10,508,128 1,445,237 13.75% 3,077,267 (1,632,030) -53.04% TOTAL GENERAL FUND 281,795,558$ 289,999,215$ 114,941,930$ 39.64% 142,210,525$ (27,268,595)$ -19.17% (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 December 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 December 31, 2023, approximately $20 million has been collected, which is 6.7% lower than prior year collection levels.
Data for the third quarter 2023 reflected a decrease of 6.2% when compared to the third quarter 2022.
Local business activity (excluding the Countywide pool and adjustments to prior periods) was down
1.1% in the third quarter 2023, reflecting declines in General Retail (down 5.9%), Transportation (down
6.1%) and Construction (down 11.7%) that were largely offset by growth in Business to Business (up
0.8%), and Food Products (up 14.4%). Activity in the Countywide pool was down 24.8%. 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. Results for the fourth quarter 2023 will be available from the State in February. 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 $27 million were received through December 2023, which is 8.1% higher than prior year collection levels. 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 Amended Budget estimate of $87.1 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 December 31, 2023, approximately $6.2 million was received, which is on par with prior year receipts.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $1.9 million through December, which is slightly above last fiscal year’s collection levels. Receipts through December reflect franchise tax collections of $1.6 million and approximately $0.3 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 budgeted levels with receipts totaling $3.3 million, or 41% of the $8.1 million budget. However, this represents a nearly 133% 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 collections. 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 December was $1.2 million, or 99.2% of the budgeted
6 City of Santa Clara
Financial Status Report as of December 31, 2023
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 December 31, 2023, $0.2 million was collected in this category, which is slightly lower than prior year collection levels.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through December, collections of approximately $15.5 million are tracking slightly above par at 52.1% of the budget. This reflects a slight decrease compared to last year’s collections through the same period of $15.8 million. While collections in EMS transport and miscellaneous charges are higher than prior years, collections in engineering fees, planning and zoning fees, and the technology fee are lower.
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 December, $16.5 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 December, $6.4 million has been collected, compared to $5.7 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 December 31, 2023, collections of $0.2 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 December 2023, revenues of $1.4 million are tracking well below par at
13.8% 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 December 31, 2023
General Fund Expenditures
As of December 31, 2023, $143.1 million or 49.4% of the General Fund operating budget had been expended. Overall, expenditures in the General Fund are within budgeted levels through December.
Departmental expenditures totaled $125.6 million, or 46.6% of the budget, which is below the par level of 50.0% of the budget. Transfers of $11.6 million have occurred as budgeted.
Adopted Budget
Amended
Budget
Actual Through
12/31/2023
Percentage
Use d
Actual Through
12/31/2022
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 15,123,531$ 15,990,480$ 6,967,611$ 43.57% 2,682,366$ 4,285,245$ 159.76% City Council 1,124,281 1,131,037 546,010 48.28% 313,572 232,438 74.13% City Clerk 1,947,261 2,121,865 784,133 36.95% 855,306 (71,173) -8.32% City Manager 5,410,204 7,709,087 1,820,152 23.61% 2,140,300 (320,148) -14.96% City Attorney 3,076,516 3,196,951 1,371,355 42.90% 1,536,461 (165,106) -10.75% Human Resources 4,300,090 4,464,113 1,631,559 36.55% 1,763,387 (131,828) -7.48% Finance 19,140,702 20,189,776 8,305,455 41.14% 8,327,242 (21,787) -0.26% Total General Government 50,122,585 54,803,309 21,426,275 39.10% 17,618,634 3,807,641 21.61% PUBLIC WORKS 24,857,521 26,270,541 11,718,068 44.61% 10,800,847 917,221 8.49% COMMUNITY DEVELOPMENT 5,121,256 5,227,061 2,484,993 47.54% 2,198,022 286,971 13.06% PARKS AND RECREATION 21,933,152 22,711,221 10,725,288 47.22% 10,131,751 593,537 5.86%
PUBLIC SAFETY
Fire 62,616,032 63,372,036 32,561,337 51.38% 33,457,347 (896,010) -2.68% Police 85,598,562 85,946,468 41,755,415 48.58% 40,014,699 1,740,716 4.35% Total Public Safety 148,214,594 149,318,504 74,316,752 49.77% 73,472,046 844,706 1.15% LIBRARY 11,135,937 11,229,696 4,968,393 44.24% 5,142,282 (173,889) -3.38% DEPARTMENTAL TOTAL 261,385,045 269,560,332 125,639,769 46.61% 119,363,582 6,276,187 5.26%
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 5,819,461 66.18% 4,969,509 849,952 17.10% TOTAL GENERAL FUND 281,795,558$ 289,999,215$ 143,104,391$ 49.35% 136,128,488$ 6,975,903$ 5.12% 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 December 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 December 31, 2023, expenditures totaled $6.9 million, or 43.6% of the budget. These expenditures are below the par level of 50%, 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. This increase in spend compared to November is a result of property insurance payments incurred in December.
City Attorney: Actual expenditures through December totaled approximately $1.4 million, which is
42.9% of the budget, which is below par. Spending is significantly below the total expenditures through the same time last fiscal year by 10.7%. This decrease is due to lower expenditures in the outside legal counsel services.
City Clerk: Through December, actual expenditures were tracking below budget at $0.8 million or approximately 37% of the budget. This expenditure level reflects an 8.3% decrease in spending compared to last fiscal year due to one-time Granicus costs that are paid every other year.
City Council: Through December, expenditures were at 48.3% of budget, which is slightly below 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 December 31, 2023 totaled $1.8 million, or 23.6% of the budget, which is below par for this time of the year. Expenditures are approximately 15% 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 December, departmental expenditures for the Planning and Housing and Community Services divisions totaled $2.5 million, or 47.5% of the budget, which is below par. This expenditure level is
13.1% 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 December, the Department’s expenditures totaled $8.3 million, or
41.1% of the budget, which is below par. This expenditure level is consistent with prior year levels.
Fire Department: Through December, actual expenditures totaled $32.6 million, or 51.4% of the budget, which is slightly above par. These expenditures reflect a 2.7% decrease from expenditures through the same period last fiscal year. This is primarily because, as approved as part of the FY
9 City of Santa Clara
Financial Status Report as of December 31, 2023
2023/24 and FY 2024/25 Adopted Operating Budget, approximately 9.0 FTE were reallocated to the newly established Fire Development Services Fee Fund. These charges are reflected under the special revenue section of this report.
Expenditures are tracking slightly over budget primarily due to higher overtime that totals 78% of the budget through December as well as compensatory time payout expenditures. Overtime is used to backfill for shift absences and vacant shift positions to maintain daily minimum staffing. When the budget was developed, it was assumed that overtime costs would be higher in the first half of the year while firefighters in the recruit academy were in training. These newly trained firefighters began providing relief staffing effective December 8, 2023. With these relief positions, overtime costs are expected to be lower in the second half of the fiscal year. However, it is anticipated that overtime expenditures will exceed the budget as the current absence rate exceeds the estimate used in the development of the budget.
When compared to the prior fiscal year, absences are up 35% through December (from 33,498 to 45,249 hours). This reflects increases in workers’ compensation/injury leave, modified duty, Family Medical Leave Act leave, sick leave, and compensatory time used. In addition, it is important to note that employees can elect for compensatory time over overtime pay when backfilling shift absences, which increases the need to backfill when the compensatory time is used.
The Fire Department will continue to monitor its absences and budget. Any necessary budget adjustments will be brought forward by year-end.
Library Department: Through December, actual expenditures totaled $4.9 million, or 44.2% of the budget, which is below par and below expenditure levels last fiscal year. The Library continues to hire staff and fill vacancies to restore library hours.
Parks and Recreation Department: Through December 31, 2023, actual expenditures totaled $10.7 million, or 47.2% of the budget, which is below par but higher than prior year actuals of $10.1 million.
This is primarily due to higher spend in the salaries and benefits, contractual services, advertising and maintenance categories.
Police Department: Expenditures through December are tracking slightly below par at $41.8 million, or
49.8% of the budget. This expenditure level is 4.4% above the prior year, primarily due to higher personnel costs and operating supplies costs.
Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures totaled $5.8 million through December, which is significantly higher than prior year levels. This is primarily due to higher personnel spend, particularly in overtime. Events at the Stadium during December included two NFL games.
10 City of Santa Clara
Financial Status Report as of December 31, 2023
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of December 31, 2023. The amended budget reflects carryover encumbrances from fiscal year 2022/23 and budget amendments approved by the City Council through December 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 $10.5 million, while expenditures totaled $12.1 million through the end of December. Overall, revenues and expenditures are tracking below par of 50.0%. 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 due to an accounting change in the disbursements category.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 12/31/2023 Received 12/31/2022 Prior Year Change Housing Authority Fund 252,495$ 252,495$ 74,947$ 29.68% 41,515$ 33,432$ 80.53% City Affordable Housing Fund 1,166,720 1,166,720 195,136 16.73% 207,347 (12,211) -5.89% Housing Successor Fund 1,306,326 1,306,326 305,876 23.41% 447,082 (141,206) -31.58% Housing and Urban Development 3,106,041 3,106,041 604,649 19.47% 647,100 (42,451) -6.56% Building Development Services Fee
Fund
15,611,000 15,611,000 7,589,080 48.61% 11,578,359 (3,989,279) -34.45% Fire Development Services Fee
Fund
2,935,000 2,937,887 1,770,623 60.27% - 1,770,623 N/A TOTAL 24,377,582$ 24,380,469$ 10,540,311$ 43.23% 12,921,403$ (2,381,092)$ -18.43% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 12/31/2023 Use d 12/31/2022 Prior Year Change Housing Authority Fund 457,193$ 518,659$ 80,941$ 15.61% 109,233$ (28,292)$ -25.90% City Affordable Housing Fund 6,683,926 10,435,503 2,805,562 26.88% (363,050) 3,168,612 -872.78% Housing Successor Fund 873,227 1,216,887 450,455 37.02% 5,320,890 (4,870,435) -91.53% Housing and Urban Development 3,993,723 4,753,782 607,732 12.78% 987,424 (379,692) -38.45% Building Development Services Fee
Fund
13,689,592 17,218,230 6,654,852 38.65% 6,444,779 210,073 3.26% Fire Development Services Fee
Fund
3,109,073 3,111,960 1,512,706 48.61% - 1,512,706 N/A TOTAL 28,806,734$ 37,255,021$ 12,112,248$ 32.51% 12,499,276$ (387,028)$ -3.10%
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 December 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 December 2023. As of December 31, 2023, the capital fund revenue totaled $12.1 million.
REVENUES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 12/31/2023 Received Parks & Recreation -$ 4,189,995$ 4,189,995$ 503,222$ 12.01% Streets & Highways 15,984,432 17,422,990 33,407,422 9,812,850 29.37% Storm Drain 4,454,000 - 4,454,000 728,868 16.36% Related Santa Clara Developer 977,582 1,707,737 2,685,319 1,025,167 38.18% Patrick Henry Drive Infrastructure
Improvement Fund
140,486 - 140,486 - 0.00% Tasman East Specific Infrastructure
Improvement Fund
- - - 50,456 N/A TOTAL 21,556,500$ 23,320,722$ 44,877,222$ 12,120,417$ 27.01%
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 December 2023. As of December 31, 2023, capital fund expenditures totaled $18.4 million, or 10.9% of the amended budget, well below par of 50.0%.
As part of the adoption of the FY 2023/24 and FY 2024/25 biennial operating budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2023.
Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2022/23 approved by the City Council approval on December 12, 2023. These adjustments are reflected in the tables referenced.
12 City of Santa Clara
Financial Status Report as of December 31, 2023
EXPENDITURES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 12/31/2023 Use d Parks & Recreation 15,799,144$ 24,181,336$ 39,980,480$ 6,098,671$ 15.25% Streets & Highways 46,080,717 43,717,468 89,798,185 9,775,824 10.89% Storm Drain 5,433,900 3,134,592 8,568,492 388,431 4.53% Fire 1,251,428 482,826 1,734,254 89,180 5.14% Library 49,658 251,447 301,105 - 0.00% Public Buildings 5,511,176 3,047,706 8,558,882 966,472 11.29% General Gov't - Other 4,403,201 6,651,782 11,054,983 784,736 7.10% City Affordable Housing Capital Fund 3,344,484 1,600,000 4,944,484 - 0.00% Related Santa Clara Developer 1,500,691 - 1,500,691 242,575 16.16% Patrick Henry Drive Infrastructure
Improvement Fund
71,281 - 71,281 11,888 16.68% Tasman East Specific Infrastructure
Improvement Fund
27,330 1,423,145 1,450,475 12,481 0.86% TOTAL 83,473,010$ 84,490,302$ 167,963,312$ 18,370,258$ 10.94%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
13 City of Santa Clara
Financial Status Report as of December 31, 2023
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of December 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 12/31/2023 Received 12/31/2022 Prior Year Change Electric Utility Fund 1,008,222,211$ 1,008,222,211$ 327,579,687$ 32.49% 277,321,538$ 50,258,149$ 18.12% Water Utility Fund 60,726,490 60,726,490 28,102,569 46.28% 24,538,107 3,564,462 14.53% Sewer Utility Fund 73,500,825 78,500,825 35,766,202 45.56% 19,318,094 16,448,108 85.14% Cemetery Fund 750,000 750,000 225,552 30.07% 295,966 (70,414) -23.79% Solid Waste Utility Fund 39,577,957 39,577,957 17,450,271 44.09% 16,160,274 1,289,997 7.98% Water Recycling Fund 7,668,868 7,668,868 4,171,682 54.40% 3,322,223 849,459 25.57% TOTAL REVENUE 1,190,446,351$ 1,195,446,351$ 413,295,963$ 34.57% 340,956,202$ 72,339,761$ 21.22% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 12/31/2023 Use d 12/31/2022 Prior Year Change Electric Utility Fund 681,590,706$ 687,147,483$ 276,519,821$ 40.24% 259,330,458$ 17,189,363$ 6.63% Water Utility Fund 54,015,131 56,447,989 25,804,911 45.71% 22,803,607 3,001,304 13.16% Sewer Utility Fund 53,980,961 55,447,527 17,429,638 31.43% 15,015,739 2,413,899 16.08% Cemetery Fund 1,534,349 1,534,349 516,791 33.68% 727,474 (210,683) -28.96% Solid Waste Utility Fund 38,782,622 42,490,732 15,987,066 37.62% 14,293,681 1,693,385 11.85% Water Recycling Fund 8,234,584 8,234,584 3,114,862 37.83% 3,601,549 (486,687) -13.51% TOTAL - Operating
Appropriations
838,138,353$ 851,302,664$ 339,373,089$ 39.87% 315,772,508$ 23,600,581$ 7.47%
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. 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. In the Sewer Utility, the high revenue collection is due to the bond proceeds collected in the debt service fund.
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 Cemetery Fund, expenditures are significantly lower than prior years due to vacancies. The decrease in expenditure levels in the Water Recycling Fund is due to the timing of resource/production invoice payments.
14 City of Santa Clara
Financial Status Report as of December 31, 2023
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actual revenue through December 31, 2023 totaled $18.6 million, consisting primarily of developer contributions in the Electric Utility Fund and sewer fees in the Sewer Utility Fund. Enterprise capital fund expenses totaled $40.5 million, or 7.0% of the amended budget. Similar to the general government capital funds, capital funds were carried over from FY 2022/23 as part of the FY 2023/24 and FY 2024/25 budget adoption process for those projects that were not expected to be completed by June 30, 2023. Additional necessary adjustments to the capital carryover amounts based on actual year-end expenditures were brought forward as part of the budgetary year-end report for FY 2022/23 approved by the City Council on December 12, 2023. These adjustments are reflected in the tables below.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 12/31/2023 Received Electric Utility Fund 38,500,092$ 10,071,673$ 48,571,765$ 17,195,747$ 35.40% Water Utility Fund - - - 13,450 N/A Sewer Utility Fund - - - 1,379,482 N/A Solid Waste Utility Fund 258,000 430,000 688,000 6,964 1.01% TOTAL - Revenue 38,758,092$ 10,501,673$ 49,259,765$ 18,595,643$ 37.75% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 12/31/2023 Use d Electric Utility Fund 383,682,041$ 135,149,829$ 518,831,870$ 28,858,231$ 5.56% Street Lighting (1) 139,007 3,527,530 3,666,537 51,608 1.41% Water Utility Fund 8,009,823 2,839,914 10,849,737 1,497,404 13.80% Sewer Utility Fund 18,414,974 24,967,761 43,382,735 8,983,641 20.71% Cemetery Fund 23,835 228,809 252,644 6,000 2.37% Solid Waste Utility Fund 1,036,757 15,085 1,051,842 724,189 68.85% Water Recycling Fund 50,000 - 50,000 12,980 25.96% Convention Center Capital
Fund
90,000 2,141,755 2,231,755 337,483 15.12%
TOTAL - CIP
Appropriations
411,446,437$ 168,870,683$ 580,317,120$ 40,471,536$ 6.97%
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 December 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 December 31, 2023
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 54,142,001$
Capital Projects Reserve 23,860,843
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 100,051,684$ 207,542,169$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
December 31, 2023
Donations to the City of Santa Clara
No additional donations were received during the month of December 2023. The total donations for fiscal year 2023/24 are shown in the table below.
Department Dec-23
Fis cal Year
2023/24
Year To Date Designated Use
City Manager's Office - 251 Help Your Neighbor Parks & Recreation - 3,900 Case Management Parks & Recreation - 1,770 Roberta Jones Jr. Theatre Parks & Recreation - 4,350 Senior Nutrition Donation Parks & Recreation - 30,975 Wade Brummal Police - 75,000 TEAM 200
TOTALS -$ 116,246$