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MONTHLY FINANCIAL STATUS REPORT
November 2023
1 City of Santa Clara
Financial Status Report as of November 30, 2023
This report summarizes the City’s financial performance for the month ended November 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
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 November 30, 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 third quarter 2023, the Gross Domestic Product (GDP) increased at an annual rate of 4.9% according to the “third” 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 an upturn in exports that were partially offset by a deceleration in nonresidential fixed investment.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/news/2023/gross-domestic-product-third-estimate-corporate-profits-revised-estimate-and-gdp
3 City of Santa Clara
Financial Status Report as of November 30, 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 $287.4 million to reflect carryover encumbrances from fiscal year 2022/23 and various budget amendments approved by the City Council through November 2023.
General Fund revenues and expenditures are currently tracking with estimated levels.
5 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-december-2023/ 6 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of November 30, 2023
General Fund Revenues
As of November 30, 2023, $73.2 million or 26.9% 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
11/30/2023
Percentage
Received
Actual Through
11/30/2022
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,524,000$ 60,524,000$ 15,323,471$ 25.32% 16,324,246$ (1,000,775)$ -6.13% Property Tax 85,800,000 85,800,000 13,496,133 15.73% 13,693,270 (197,137) -1.44% Transient Occupancy Tax 21,275,000 21,275,000 5,717,965 26.88% 5,561,694 156,271 2.81% Other Taxes 6,750,000 6,750,000 1,794,102 26.58% 1,788,958 5,144 0.29% Total Taxes 174,349,000 174,349,000 36,331,671 20.84% 37,368,168 (1,036,497) -2.77%
LICENSES & PERMITS
Business Licenses 6,000,000 6,000,000 2,178,351 36.31% 357,795 1,820,556 508.83% Fire Operation Permits 2,000,000 2,000,000 666,745 33.34% 792,866 (126,121) -15.91% Miscellaneous Permits 69,000 69,000 2,461 3.57% 32,532 (30,071) -92.44% Total Licenses & Permits 8,069,000 8,069,000 2,847,557 35.29% 1,183,193 1,664,364 140.67% FINES & PENALTIES 1,225,000 1,225,000 1,037,160 84.67% 105,604 931,556 882.12% INTERGOVERNMENTAL 520,000 520,000 148,252 28.51% 170,066 (21,814) -12.83% CHARGES FOR SERVICES 29,314,768 29,666,268 12,810,495 43.18% 13,147,444 (336,950) -2.56% SILICON VALLEY POWER TRANSFER 32,000,000 32,000,000 13,712,604 42.85% 11,934,953 1,777,651 14.89%
USE OF MONEY & PROPERTY
Interest 3,500,000 3,500,000 16,106 0.46% 378,009 (361,903) -95.74% Rent 12,397,660 12,397,660 5,243,300 42.29% 4,307,466 935,834 21.73% Total Use of Money & Property 15,897,660 15,897,660 5,259,406 33.08% 4,685,475 573,931 12.25% MISCELLANEOUS REVENUES 180,000 180,000 137,475 76.38% 1,859,668 (1,722,193) -92.61%
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% 34,325,079 (26,312,966) -76.66% 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% 42,634,179 (27,662,339) -64.88%
STADIUM OPERATION
Charges for Services 9,278,128 9,278,128 895,270 9.65% 2,293,120 (1,397,850) -60.96% Rent and Licensing 1,230,000 1,230,000 69,313 5.64% 556,621 (487,308) -87.55% Total Stadium Operation 10,508,128 10,508,128 964,583 9.18% 2,849,741 (1,885,158) -66.15% TOTAL GENERAL FUND 281,795,558$ 287,386,896$ 88,221,042$ 30.70% 115,938,491$ (27,717,448)$ -23.91% (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 November 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 November 30, 2023, approximately $15.3 million has been collected, which is 6.1% 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. 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 $13.5 million were received through November 2023. The majority of property tax revenue is collected in February and April each year. Based on 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 November 30, 2023, approximately $5.7 million was received, which is 2.8% higher than prior year receipts.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $1.8 million through November, which is on par with last fiscal year’s collection levels. Receipts through November reflect franchise tax collections of $1.5 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 par with receipts totaling $2.8 million, or 35.3% of the $8.1 million budget. However, this represents a nearly 156% 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 November was $1.0 million, or 84.7% of the budgeted
6 City of Santa Clara
Financial Status Report as of November 30, 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 November 30, 2023, $0.1 million was collected in this category, which is on par with 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 November, collections of approximately $12.8 million are tracking slightly above par at 43.2% of the budget. This reflects a 2.7% decrease compared to last year’s collections through the same period of $11.8 million. While collections in EMS transport and miscellaneous charges are higher than prior years, collections in engineering fees and planning and zoning fees 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 November, $13.7 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 November, $5.3 million has been collected, compared to $4.7 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 November 30, 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 November 2023, revenues of $0.9 million are tracking well below par at
9.2% 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 November 30, 2023
General Fund Expenditures
As of November 30, 2023, $120.3 million or 41.9% of the General Fund operating budget had been expended. Overall, expenditures in the General Fund are within budgeted levels through November.
Departmental expenditures totaled $103.7 million, or 38.9% of the budget, which is below the par level of 41.7% of the budget. Transfers of $11.6 million have occurred as budgeted.
Adopted Budget
Amended
Budget
Actual Through
11/30/2023
Percentage
Use d
Actual Through
11/30/2022
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 15,123,531$ 15,640,480$ 4,316,021$ 27.60% 2,013,239$ 2,302,782$ 114.38% City Council 1,124,281 1,131,037 468,262 41.40% 266,677 201,585 75.59% City Clerk 1,947,261 2,121,865 670,951 31.62% 757,746 (86,795) -11.45% City Manager 5,410,204 5,938,327 1,369,305 23.06% 1,821,516 (452,211) -24.83% City Attorney 3,076,516 3,196,951 1,135,878 35.53% 1,368,946 (233,068) -17.03% Human Resources 4,300,090 4,464,113 1,323,766 29.65% 1,468,880 (145,114) -9.88% Finance 19,140,702 19,939,776 6,891,409 34.56% 7,016,819 (125,410) -1.79% Total General Government 50,122,585 52,432,549 16,175,592 30.85% 14,713,823 1,461,769 9.93% PUBLIC WORKS 24,857,521 26,178,981 9,699,755 37.05% 9,133,284 566,472 6.20% COMMUNITY DEVELOPMENT 5,121,256 5,227,061 2,063,937 39.49% 1,847,449 216,488 11.72% PARKS AND RECREATION 21,933,152 22,711,221 8,954,437 39.43% 8,681,141 273,296 3.15%
PUBLIC SAFETY
Fire 62,616,032 63,222,036 27,510,759 43.51% 28,080,867 (570,108) -2.03% Police 85,598,562 85,946,468 35,188,038 40.94% 33,810,147 1,377,891 4.08% Total Public Safety 148,214,594 149,168,504 62,698,797 42.03% 61,891,014 807,783 1.31% LIBRARY 11,135,937 11,229,696 4,155,351 37.00% 4,343,709 (188,358) -4.34% DEPARTMENTAL TOTAL 261,385,045 266,948,012 103,747,869 38.86% 100,610,420 3,137,450 3.12%
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 4,941,465 56.19% 4,057,640 883,825 21.78% TOTAL GENERAL FUND 281,795,558$ 287,386,895$ 120,334,495$ 41.87% 116,463,457$ 3,871,038$ 3.32% 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 November 30, 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 November 30, 2023, expenditures totaled $4.3 million, or 27.6% of the budget. These expenditures are below the par level of 41.7%, 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 November totaled approximately $1.1 million, which is
35.5% of the budget, which is below par. Spending is significantly below the total expenditures through the same time last fiscal year by 17%. This decrease is due to lower expenditures in the outside legal counsel services.
City Clerk: Through November, actual expenditures were tracking below budget at $0.7 million or approximately 31.6% 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 November, expenditures were at 41.4% 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 November 30, 2023 totaled $1.4 million, or 23.1% of the budget, which is below par for this time of the year. Expenditures are approximately 24.8% 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 November, departmental expenditures for the Planning and Housing and Community Services divisions totaled $2.1 million, or 39.5% of the budget, which is at par. This expenditure level is 11.7% 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 November, the Department’s expenditures totaled $6.9 million, or
34.6% of the budget, which is below par. This expenditure level is consistent with prior year levels.
Fire Department: Through November, actual expenditures totaled $27.5 million, or 43.5% of the budget, which is above par of 41.7%. These expenditures reflect a 2% 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 positions were reallocated to
9 City of Santa Clara
Financial Status Report as of November 30, 2023
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 expenses that total 70% of the budget through November 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 32% through November (from 27,727 to 36,695 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 November, actual expenditures totaled $4.2 million, or 37% of the budget, which is slightly 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 November 30, 2023, actual expenditures totaled $8.9 million, or 39.4% of the budget, which is below par but slightly higher than prior year actuals of $8.7 million. This is primarily due to higher spend in the salaries and benefits and utilities categories.
Police Department: Expenditures through November are tracking slightly below par at $35.2 million, or
40.9% of the budget. This expenditure level is 4.1% 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 $4.9 million through November, which is significantly higher than prior year levels. This is primarily due to higher personnel spend, particularly in overtime. Events at the Stadium during November included one NFL game.
10 City of Santa Clara
Financial Status Report as of November 30, 2023
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of November 30, 2023. The amended budget reflects carryover encumbrances from fiscal year 2022/23 and budget amendments approved by the City Council through November 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 $8.9 million, while expenditures totaled $8.3 million through the end of November. Overall, revenues and expenditures are tracking below par of 41.7%. In the Housing Successor Fund, the expenditures are significantly lower compared to last fiscal year due to a one-time special disbursement for a housing loan that occurred in July 2022. 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 11/30/2023 Received 11/30/2022 Prior Year Change Housing Authority Fund 252,495$ 252,495$ 71,966$ 28.50% 38,086$ 33,880$ 88.96% City Affordable Housing Fund 1,166,720 1,166,720 147,785 12.67% 197,051 (49,266) -25.00% Housing Successor Fund 1,306,326 1,306,326 287,450 22.00% 436,471 (149,021) -34.14% Housing and Urban Development 3,106,041 3,106,041 473,858 15.26% 423,977 49,881 11.77% Building Development Services Fee
Fund
15,611,000 15,611,000 6,444,061 41.28% 9,135,817 (2,691,756) -29.46% Fire Development Services Fee
Fund
2,935,000 2,935,000 1,512,435 51.53% - 1,512,435 N/A TOTAL 24,377,582$ 24,377,582$ 8,937,555$ 36.66% 10,231,402$ (1,293,847)$ -12.65% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 11/30/2023 Use d 11/30/2022 Prior Year Change Housing Authority Fund 457,193$ 518,659$ 71,294$ 13.75% 72,360$ (1,066)$ -1.47% City Affordable Housing Fund 6,683,926 7,435,503 396,981 5.34% (1,165,828) 1,562,809 -134.05% Housing Successor Fund 873,227 1,216,887 394,349 32.41% 2,590,456 (2,196,107) -84.78% Housing and Urban Development 3,993,723 4,753,782 548,622 11.54% 883,095 (334,473) -37.88% Building Development Services Fee
Fund
13,689,592 17,218,230 5,635,570 32.73% 5,488,870 146,700 2.67% Fire Development Services Fee
Fund
3,109,073 3,109,073 1,280,439 41.18% - 1,280,439 N/A TOTAL 28,806,734$ 34,252,134$ 8,327,255$ 24.31% 7,868,953$ 458,302$ 5.82%
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 November 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 November 2023. As of November 30, 2023, the capital fund revenue totaled $11.5 million.
REVENUES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2023 Received Parks & Recreation -$ 4,280,995$ 4,280,995$ 417,268$ 9.75% Streets & Highways 17,294,432 15,988,284 33,282,716 9,452,690 28.40% Storm Drain 4,454,000 - 4,454,000 605,773 13.60% Related Santa Clara Developer 977,582 - 977,582 1,022,009 104.54% Patrick Henry Drive Infrastructure
Improvement Fund
140,486 - 140,486 - 0.00% Tasman East Specific Infrastructure
Improvement Fund
- - - 40,741 N/A TOTAL 22,866,500$ 20,269,279$ 43,135,779$ 11,538,481$ 26.75%
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 November 2023. As of November 30, 2023, capital fund expenditures totaled $17.0 million, or 9.9% of the amended budget, well below par of 41.7%.
As part of the adoption of the FY 2023/24 and FY 2024/25 biennial operating budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2023.
Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2022/23 approved by the City Council approval on December 12, 2023. These adjustments will be reflected in the December Monthly Financial Report.
12 City of Santa Clara
Financial Status Report as of November 30, 2023
EXPENDITURES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2023 Use d Parks & Recreation 2,719,457$ 38,184,533$ 40,903,990$ 5,437,529$ 13.29% Streets & Highways 29,575,900 62,604,298 92,180,198 9,261,995 10.05% Storm Drain 3,807,414 4,002,049 7,809,463 325,333 4.17% Fire 427,374 1,303,898 1,731,272 89,180 5.15% Library - 301,105 301,105 406 0.13% Public Buildings 1,590,019 9,319,499 10,909,518 898,751 8.24% General Gov't - Other 941,000 8,688,990 9,629,990 753,668 7.83% City Affordable Housing Capital Fund 3,344,484 1,600,000 4,944,484 - 0.00% Related Santa Clara Developer 977,582 523,109 1,500,691 226,699 15.11% Patrick Henry Drive Infrastructure
Improvement Fund
71,281 - 71,281 7,096 9.95% Tasman East Specific Infrastructure
Improvement Fund
27,330 1,423,145 1,450,475 7,096 0.49% TOTAL 43,481,841$ 127,950,626$ 171,432,467$ 17,007,753$ 9.92%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
13 City of Santa Clara
Financial Status Report as of November 30, 2023
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of November 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 11/30/2023 Received 11/30/2022 Prior Year Change Electric Utility Fund 1,008,222,211$ 1,008,222,211$ 265,710,082$ 26.35% 224,243,664$ 41,466,418$ 18.49% Water Utility Fund 60,726,490 60,726,490 23,734,164 39.08% 20,768,305 2,965,859 14.28% Sewer Utility Fund 73,500,825 78,500,825 30,732,634 39.15% 15,920,197 14,812,437 93.04% Cemetery Fund 750,000 750,000 190,860 25.45% 252,666 (61,806) -24.46% Solid Waste Utility Fund 39,577,957 39,577,957 14,272,756 36.06% 13,188,294 1,084,462 8.22% Water Recycling Fund 7,668,868 7,668,868 3,484,523 45.44% 2,875,608 608,915 21.18% TOTAL REVENUE 1,190,446,351$ 1,195,446,351$ 338,125,019$ 28.28% 277,248,734$ 60,876,285$ 21.96% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 11/30/2023 Use d 11/30/2022 Prior Year Change Electric Utility Fund 681,590,706$ 687,147,483$ 232,110,390$ 33.78% 224,445,731$ 7,664,659$ 3.41% Water Utility Fund 54,015,131 56,158,029 17,788,870 31.68% 18,937,361 (1,148,491) -6.06% Sewer Utility Fund 53,980,961 54,497,527 16,615,937 30.49% 13,908,764 2,707,173 19.46% Cemetery Fund 1,534,349 1,534,349 450,224 29.34% 599,983 (149,759) -24.96% Solid Waste Utility Fund 38,782,622 42,314,984 13,002,913 30.73% 12,457,728 545,185 4.38% Water Recycling Fund 8,234,584 8,234,584 588,187 7.14% 3,534,465 (2,946,278) -83.36% TOTAL - Operating
Appropriations
838,138,353$ 849,886,956$ 280,556,521$ 33.01% 273,884,032$ 6,672,489$ 2.44% PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2023/24
CITY OF SANTA CLARA
ENTERPRISE OPERATING FUNDS
REVENUES AND EXPENSES - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2023/24 PRIOR YEAR REVENUE COMPARISON
Both revenues and expenditures are tracking 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 significant drop 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 November 30, 2023
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actual revenue through November 30, 2023 totaled $17.3 million, consisting primarily of developer contributions in the Electric Utility Fund and sewer fees in the Sewer Utility Fund. Enterprise capital fund expenses totaled $38.1 million, or 6.6% of the amended budget. Similar to the general government capital funds, capital funds were carried over from FY 2022/23 as part of the FY 2023/24 and FY 2024/25 budget adoption process for those projects that were not expected to be completed by June 30, 2023. Additional necessary adjustments to the capital carryover amounts based on actual year-end expenditures were brought forward as part of the budgetary year-end report for FY 2022/23 approved by the City Council on December 12, 2023. These adjustments will be reflected in the December Monthly Financial Report.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2023 Received Electric Utility Fund 38,500,092$ 40,599,727$ 79,099,819$ 15,982,980$ 20.21% Water Utility Fund - - - 13,450 N/A Sewer Utility Fund - - - 1,330,514 N/A Solid Waste Utility Fund 258,000 - 258,000 6,964 2.70% Convention Center Capital
Fund
- - - 6,032 N/A TOTAL - Revenue 38,758,092$ 40,599,727$ 79,357,819$ 17,339,940$ 21.85% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2023 Use d Electric Utility Fund 355,591,815$ 161,038,869$ 516,630,684$ 27,077,049$ 5.24% Street Lighting (1) 125,000 3,452,509 3,577,509 33,714 0.94% Water Utility Fund 6,114,502 5,316,334 11,430,836 1,323,326 11.58% Sewer Utility Fund 13,721,802 28,349,075 42,070,876 8,885,909 21.12% Cemetery Fund - 245,335 245,335 - 0.00% Solid Waste Utility Fund 765,000 271,756 1,036,756 428,370 41.32% Water Recycling Fund 50,000 - 50,000 12,980 25.96% Convention Center Capital
Fund
- 2,146,482 2,146,482 335,101 15.61%
TOTAL - CIP
Appropriations
376,368,118$ 200,820,360$ 577,188,478$ 38,096,449$ 6.60%
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 November 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 November 30, 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
November 30, 2023
Donations to the City of Santa Clara
Donations received by department during the month of November 2023 and for fiscal year 2023/24 are shown in the table below.
Department Nov-23
Fis cal Year
2023/24
Year To Date Designated Use
City Manager's Office 50 251 Help Your Neighbor Parks & Recreation - 3,900 Case Management Parks & Recreation 1,637 1,770 Roberta Jones Jr. Theatre Parks & Recreation - 4,350 Senior Nutrition Donation Parks & Recreation 475 30,975 Wade Brummal Police - 75,000 TEAM 200
TOTALS 2,162$ 116,246$