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MONTHLY FINANCIAL STATUS REPORT
February 2024
1 City of Santa Clara
Financial Status Report as of February 29, 2024
This report summarizes the City’s financial performance for the month ended February 29, 2024.
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 continues but is expected to be constrained in 2024. The March 2024 UCLA Anderson Forecast assumes no recession but does expect s lower growth in 2024 as a result of the impact of higher interest rates on consumption, housing and business investment. The UCLA Forecast also identified risks to the Forecast, including the potential shutdown of the government, the impact of geopolitical events, and the impact of the election of national economic policies.
1 Quarterly Real GDP Growth, Seasonally Adjusted Annual Rates
The Conference Board Economic Forecast for the US Economy also no longer forecasts a recession for 2024 but does expect consumer spending growth to cool and for the overall GDP growth to slow to under 1% over the second and third quarters of 2024. After that point, inflation and interest rates are expected to normalize and annualize GDP growth is projected at near 2% in 2025.2
1 UCLA Anderson Forecast, March 2024, The U.S. Economic Outlook and the 2024 Consumer Sentiment Consumption Disconnect
2 https:///www.conference-board.org/research/us-forecast, The Conference Board Economic Forecast for the US Economy, Updated March 15, 2024
2 City of Santa Clara
Financial Status Report as of February 29, 2024
On a national level, the unemployment rate increased from 3.7% in January 2024 to 3.9% in February 2024. In February, the number of unemployed persons was 6.5 million, up from 6.1 million in January 2024.3
In the fourth quarter 2023, the Gross Domestic Product (GDP) increased at an annual rate of 3.4% according to the “third” 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, and residential fixed investment. Compared to the third quarter, the GDP deceleration in the fourth quarter primarily reflected slowdowns in private inventory investment, federal government spending, and residential fixed investments.4
3 https://www.bls.gov/news.release/pdf/empsit.pdf
4 https://www.bea.gov/sites/default/files/2024-03/tech4q23-3rd.pdf
3 City of Santa Clara
Financial Status Report as of February 29, 2024
At the state level, the California unemployment increased from 5.2% in January 2024 to 5.3% in February 2024. This rate is higher compared to the 4.5% rate in February 2023. From February 2023 to February 2024, California added 179,700 nonfarm jobs, an increase of 1.0%.5
The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) remained unchanged at 4.4% between February and January 2024, and above the February 2023 level of 3.2%. Between February 2023 and February 2024, employment in this region decreased by 6,300 jobs, or 0.5%. Notable employment reductions were in information (down 7,700 jobs), professional and business services (down 5,000 jobs), and manufacturing (down 3,700) that were partially offset by increases in private education and health services (up 11,600 jobs) and government (up 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 $290 million to reflect carryover encumbrances from fiscal year 2022/23 and various budget amendments approved by the City Council through February 2024. This budget also accounts for items approved by the City Council on December 12, 2023, as part of the FY 2022/23 Budget Year-End Report.
5 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-February-2024/ 6 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of February 29, 2024
General Fund Revenues
As of February 29, 2024, $153.1 million or 55.7% 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
02/29/2024
Percentage
Received
Actual Through
02/28/2023
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,524,000$ 60,524,000$ 30,036,934$ 49.63% 32,771,154$ (2,734,220)$ -8.34% Property Tax 85,800,000 87,143,000 46,456,158 53.31% 43,544,139 2,912,019 6.69% Transient Occupancy Tax 21,275,000 21,275,000 11,094,200 52.15% 10,672,774 421,426 3.95% Other Taxes 6,750,000 6,750,000 3,215,744 47.64% 3,296,767 (81,023) -2.46% Total Taxes 174,349,000 175,692,000 90,803,036 51.68% 90,284,834 518,202 0.57%
LICENSES & PERMITS
Business Licenses 6,000,000 6,000,000 3,139,137 52.32% 562,972 2,576,165 457.60% Fire Operation Permits 2,000,000 2,000,000 1,212,716 60.64% 1,258,036 (45,320) -3.60% Miscellaneous Permits 69,000 69,000 17,231 24.97% 37,239 (20,008) -53.73% Total Licenses & Permits 8,069,000 8,069,000 4,369,084 54.15% 1,858,247 2,510,837 135.12% FINES & PENALTIES 1,225,000 1,225,000 1,660,811 135.58% 220,541 1,440,270 653.06% INTERGOVERNMENTAL 520,000 520,000 502,382 96.61% 897,220 (394,838) -44.01% CHARGES FOR SERVICES 29,314,768 29,816,268 21,354,680 71.62% 21,453,395 (98,715) -0.46% SILICON VALLEY POWER TRANSFER 32,000,000 32,000,000 21,940,167 68.56% 19,095,925 2,844,242 14.89%
USE OF MONEY & PROPERTY
Interest 3,500,000 3,500,000 1,380,169 39.43% 1,521,524 (141,355) -9.29% Rent 12,397,660 13,431,960 8,238,642 61.34% 8,024,760 213,882 2.67% Total Use of Money & Property 15,897,660 16,931,960 9,618,811 56.81% 9,546,284 72,527 0.76% MISCELLANEOUS REVENUES 180,000 180,000 236,935 131.63% 1,973,302 (1,736,367) -87.99%
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 2,368,686 25.53% 5,293,669 (2,924,983) -55.25% Rent and Licensing 1,230,000 1,230,000 216,108 17.57% 710,000 (493,892) -69.56% Total Stadium Operation 10,508,128 10,508,128 2,584,794 24.60% 6,003,669 (3,418,875) -56.95% TOTAL GENERAL FUND 281,795,558$ 289,999,215$ 168,127,558$ 57.98% 196,361,596$ (28,234,038)$ -14.38% (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 February 29, 2024
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 February 29, 2024, approximately $30.0 million has been collected, which is 8.3% lower than prior year collection levels.
Sales Tax receipts through the first two quarters of FY 2023/24 were down 8% compared to the prior year. Receipts were down 6.2% in the third quarter 2023 and down 10.0% in the fourth quarter 2023 when compared to the same quarters in 2022. Local business activity (excluding the Countywide pool and adjustments to prior periods) was down 4.3% in the fourth quarter 2023 when compared to the same quarter in the prior year. This reflects declines in General Retail (down 0.7%), Transportation (down 13.5%) Construction (down 22.3%), and Business to Business (down 0.3%); the Food Products was the only category that increased (up 2.2%).The declines in the last two quarters follow four quarters of growth experienced in FY 2022/23. Given the strong performance last fiscal year, receipts can decline by approximately 5% in the remaining two quarters of FY 2023/24 and still meet the budgeted estimate of $59.6 million. However, if sales tax receipts decline by 8% - 10% in the remaining two quarters, collections would fall below the budget by $1.1 million - $1.7 million. Internet sales represents a sizeable amount of the City’s sales tax revenue. The County pool, which includes internet sales, accounts for approximately 15%-20% of the sales tax the City receives. The allocation from the County pool in the four quarter of 2023 was down 20.7% from the fourth quarter 2022.
Property Tax: Property tax receipts totaling $46.5 million were received through February 2024, which is 6.7% higher than prior year collection levels. The majority of property tax revenue is collected in February and April each year. Based on the latest information from the County of Santa Clara, property tax receipts are projected to end the year at $90.5 million, which is $3.4 million 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 increased from 11.5% to 12.5% effective January 1, 2024. This rate increase was factored into the development of the FY 2023/24 Adopted Budget. Through February 29, 2024, approximately $11.1 million was received, which is 4.0% above prior year receipts. Collections in the second half of the year are expected to be higher as a result of the rate increase. Growth of 12% from the prior year is needed to meet the budgeted estimate of $21.3 million.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $3.2 million through February, which is on par with last fiscal year’s collection levels. Receipts through February reflect franchise tax collections of $2.6 million and approximately $0.6 million in documentary transfer tax revenue. The documentary transfer tax is tracking to end the year below budget, which reflects the drop in the number of property sales. In calendar year 2023, the number of single-family residence sales was down approximately 26% from calendar year 2022.
Licenses & Permits: Includes business licenses, fire operation permits, and miscellaneous permits and fees. Licenses and permits revenue collections total $4.4 million, or 54.2% of the $8.1 million budget. This represents a nearly 135% increase compared to prior year collection levels, primarily in
6 City of Santa Clara
Financial Status Report as of February 29, 2024
the business tax category. Business tax receipts total $3.1 million through February, which is up from $0.6 million in the prior year. 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 February was $1.7 million, which exceeds the budgeted estimate of $1.2 million. Collections in this category are tracking above prior year levels 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 February 29, 2024, $0.5 million was collected in this category, which is lower than prior year collection levels. Revenues are projected to slightly exceed the budgeted estimate of $0.5 million.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through February, collections of approximately $21.4 million are tracking slightly above par at 71.6% of the budget and are expected to meet the budgeted estimate by year-end. Revenues in this category are consistent with last year’s collections through the same period of $21.5 million. While collections in EMS transport and miscellaneous charges are higher than prior years, collections in engineering 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 February, $21.9 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 February, $9.6 million has been collected, compared to $9.5 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 February 29, 2024, collections of $0.2 million have exceeded the budgeted estimate but are significantly lower than prior year levels. This lower collection level 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.
7 City of Santa Clara
Financial Status Report as of February 29, 2024
Stadium Operation: Through February 2024, revenues of $2.6 million are tracking well below par at
24.6% 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.
8 City of Santa Clara
Financial Status Report as of February 29, 2024
General Fund Expenditures
As of February 29 , 2024, $188.1 million or 64.9% of the General Fund operating budget had been expended. Overall, expenditures in the G eneral Fund are within budgeted levels through February.
Excluding transfers, expenditures totaled $176.5 million, or 63.4% of the budget, which is below the par level of 66.7% of the budget. Transfers of $11.6 million have occurred as budgeted.
Adopted Budget
Amended
Budget
Actual Through
02/29/2024
Percentage
Use d
Actual Through
02/28/2023
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 15,123,531$ 15,990,480$ 8,801,779$ 55.04% 3,158,084$ 5,643,695$ 178.71% City Council 1,124,281 1,131,037 748,269 66.16% 436,469 311,800 71.44% City Clerk 1,947,261 2,121,865 1,024,787 48.30% 1,438,688 (413,901) -28.77% City Manager 5,410,204 7,709,087 2,800,187 36.32% 3,552,663 (752,476) -21.18% City Attorney 3,076,516 3,196,951 1,876,448 58.69% 2,074,953 (198,505) -9.57% City Auditor 948,445 1,087,660 487,882 44.86% 460,624 27,258 5.92% Human Resources 4,300,090 4,464,113 2,208,950 49.48% 2,398,435 (189,485) -7.90% Finance 18,192,257 19,102,116 10,667,975 55.85% 10,754,872 (86,897) -0.81% Total General Government 50,122,585 54,803,309 28,616,277 52.22% 24,274,788 4,341,489 17.88% PUBLIC WORKS 24,857,521 26,270,541 16,217,945 61.73% 14,178,287 2,039,658 14.39% COMMUNITY DEVELOPMENT 5,121,256 5,227,061 3,292,243 62.98% 2,920,551 371,692 12.73% PARKS AND RECREATION 21,933,152 22,711,221 14,068,719 61.95% 13,102,102 966,617 7.38%
PUBLIC SAFETY
Fire 62,616,032 63,372,036 43,492,959 68.63% 44,495,241 (1,002,282) -2.25% Police 85,598,562 85,946,468 55,966,440 65.12% 53,416,667 2,549,773 4.77% Total Public Safety 148,214,594 149,318,504 99,459,399 66.61% 97,911,908 1,547,491 1.58% LIBRARY 11,135,937 11,229,696 6,806,747 60.61% 6,866,721 (59,974) -0.87% DEPARTMENTAL TOTAL 261,385,045 269,560,332 168,461,330 62.49% 159,254,357 9,206,973 5.78%
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% 8,817,613 (1,512,114) -17.15% Total Other Financing Uses 11,645,161 11,645,161 11,645,161 100.00% 11,971,397 (326,236) -2.73% STADIUM OPERATION 8,765,352 8,793,722 8,007,601 91.06% 7,015,387 992,214 14.14% TOTAL GENERAL FUND 281,795,558$ 289,999,215$ 188,114,092$ 64.87% 178,241,141$ 9,872,951$ 5.54% Function
CITY OF SANTA CLARA
GENERAL FUND
EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2023/24 PY EXPENDITURES COMPARISON
9 City of Santa Clara
Financial Status Report as of February 29, 2024
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 February 29, 2024, expenditures totaled $8.8 million, or 55% of the budget. These expenditures are below the par level of 66.7%, but significantly 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 February totaled approximately $1.9 million, which is
58.7% of the budget, which is below par. Spending is 9.6% below the prior fiscal year due to lower outside legal counsel services costs.
City Clerk: Through February, actual expenditures were tracking below budget at $1.0 million or approximately 48.3% of the budget. This expenditure level reflects an 28.8% decrease in spending compared to last fiscal year due to one-time Granicus costs that are paid every other year.
City Council: Through February, expenditures were at 66.2% 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: Expenditures through February totaled $2.8 million, or 36.3% of the budget, which is below par for this time of the year. Expenditures are approximately 21.2% 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, partially offset with higher spend in miscellaneous supplies and services.
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 February, departmental expenditures for the Planning and Housing and Community Services divisions totaled $3.3 million, or 63% of the budget, which is below par. This expenditure level is 12.7% above the prior year is a result of higher salaries and benefits costs, separation payouts, and higher contractual services spending in the current year.
Finance Department: Through February, the Department’s expenditures totaled $10.7 million, or
55.9% of the budget, which is below par. This expenditure level is consistent with prior year levels.
Fire Department: Through February, actual expenditures totaled $43.5 million, or 68.6% of the budget, which is 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
10 City of Santa Clara
Financial Status Report as of February 29, 2024
Fire Development Services Fee Fund. These charges are reflected under the special revenue section of this report.
Expenditures are tracking over budget primarily due to higher overtime that totals 86.8% of the budget through February 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 33% through February (from 43,581 to 58,119 hours). This reflects increases in workers’ compensation/injury leave, modified duty, Family Medical Leave Act leave, sick leave, and compensatory time used. 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. Through February, the compensatory time payouts are also up 47% from the prior year and significantly above historical levels.
Expenditures are currently tracking to end the year approximately $1.5 million to $2 million above budget. While the Fire Department will continue to monitor its budget and work with the Finance Department and the City Manager’s Office to identify any options to partially mitigate the overage, a budget adjustment is expected to be brought forward before the end of the fiscal year.
Library Department: Through February, actual expenditures totaled $6.8 million, or 60.6% 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 February, actual expenditures totaled $14.1 million, or 62 % of the budget, which is below par but higher than prior year actuals of $13.1 million. This is primarily due to higher spend in the salaries and benefits, contractual services, advertising and maintenance categories.
Police Department: Expenditures through February are tracking slightly below par at $56 million, or
65.1% of the budget. This expenditure level is 4.8% above the prior year, primarily due to higher personnel costs, contractual services, 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 $8.0 million through February 29, 2024, which is higher than prior year levels. This is primarily due to higher personnel spend, particularly in overtime. Staff will continue to monitor the Stadium spend and any necessary budget adjustments will be brought forward by year-end.
11 City of Santa Clara
Financial Status Report as of February 29, 2024
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of February 29, 2024. The amended budget reflects carryover encumbrances from fiscal year 2022/23 and budget amendments approved by the City Council through February 2024. 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 $14.5 million, while expenditures totaled $16.2 million through the end of February. Overall, both revenues and expenditures are tracking below the par level of 66.7%. The Building Development Services Fee Fund has seen a large decrease on the revenue side due to lower activity levels in the permitting categories. Expenditures; however, are tracking higher when compared to last year due to the filling of vacancies in the Building Division. 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. The drop in revenue and expenditures in the City Affordable Housing Fund are due to a one-time developer loan being disbursed in full.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 2/29/2024 Received 2/28/2023 Prior Year Change Housing Authority Fund 252,495$ 252,495$ 387,988$ 153.66% 58,124$ 329,864$ 567.52% City Affordable Housing Fund 1,166,720 1,166,720 489,280 41.94% 6,262,565 (5,773,285) -92.19% Housing Successor Fund 1,306,326 1,306,326 349,883 26.78% 482,700 (132,817) -27.52% Housing and Urban Development 3,106,041 5,712,147 840,218 14.71% 655,425 184,793 28.19% Building Development Services Fee
Fund
15,611,000 15,611,000 9,938,436 63.66% 13,912,940 (3,974,504) -28.57% Fire Development Services Fee
Fund
2,935,000 2,937,887 2,507,566 85.35% - 2,507,566 N/A TOTAL 24,377,582$ 26,986,575$ 14,513,371$ 53.78% 21,371,754$ (6,858,383)$ -32.09% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 2/29/2024 Use d 2/28/2023 Prior Year Change Housing Authority Fund 457,193$ 518,659$ 113,176$ 21.82% 134,423$ (21,247)$ -15.81% City Affordable Housing Fund 6,683,926 10,435,503 3,029,776 29.03% 6,603,822 (3,574,046) -54.12% Housing Successor Fund 873,227 1,216,887 556,128 45.70% 5,380,413 (4,824,285) -89.66% Housing and Urban Development 3,993,723 6,673,020 789,351 11.83% 1,156,305 (366,954) -31.74% Building Development Services Fee
Fund
13,689,592 17,218,230 9,649,819 56.04% 8,669,703 980,116 11.31% Fire Development Services Fee
Fund
3,109,073 3,111,960 2,050,680 65.90% - 2,050,680 N/A TOTAL 28,806,734$ 39,174,259$ 16,188,930$ 41.33% 21,944,666$ (5,755,736)$ -26.23%
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
12 City of Santa Clara
Financial Status Report as of February 29, 2024
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 February 2024. As of February 29, 2024, the capital fund revenue totaled $16.7 million. In the Parks and Recreation Capital Fund, $3.2 million has been collected, which includes approximately $2.1 million in Mitigation Fee Act revenue.
REVENUES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 2/29/2024 Received Parks & Recreation -$ 4,189,995$ 4,189,995$ 3,235,967$ 77.23% Streets & Highways 16,434,432 17,422,990 33,857,422 10,284,606 30.38% Storm Drain 4,454,000 - 4,454,000 971,624 21.81% Related Santa Clara Developer 977,582 1,707,737 2,685,319 2,137,720 79.61% Patrick Henry Drive Infrastructure
Improvement Fund
140,486 - 140,486 - 0.00% Tasman East Specific Infrastructure
Improvement Fund
- - - 83,128 N/A TOTAL 22,006,500$ 23,320,722$ 45,327,222$ 16,712,899$ 36.87%
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 February 2024. As of February 29, 2024, capital fund expenditures totaled $30.3 million, or 18% of the amended budget, well below par of 66.7%.
As part of the adoption of the FY 2023/24 and FY 2024/25 biennial operating budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2023.
Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2022/23 approved by the City Council approval on December 12, 2023. These adjustments are reflected in the tables referenced.
13 City of Santa Clara
Financial Status Report as of February 29, 2024
EXPENDITURES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 2/29/2024 Use d Parks & Recreation 15,799,144$ 24,181,336$ 39,980,480$ 8,672,197$ 21.69% Streets & Highways 46,545,417 43,717,468 90,262,885 17,691,776 19.60% Storm Drain 5,433,900 3,134,592 8,568,492 970,252 11.32% Fire 1,251,428 482,826 1,734,254 136,076 7.85% Library 49,658 251,447 301,105 33,677 11.18% Public Buildings 5,511,176 3,047,706 8,558,882 1,247,538 14.58% General Gov't - Other 4,403,201 6,651,782 11,054,983 1,174,668 10.63% City Affordable Housing Capital Fund 3,344,484 1,600,000 4,944,484 - 0.00% Related Santa Clara Developer 1,500,691 - 1,500,691 388,396 25.88% 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 83,937,710$ 84,490,302$ 168,428,012$ 30,338,949$ 18.01%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
14 City of Santa Clara
Financial Status Report as of February 29, 2024
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of February 29, 2024. Overall, revenues and expenditures are tracking below budgeted levels.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 2/29/2024 Received 2/28/2023 Prior Year Change Electric Utility Fund 1,008,222,211$ 1,008,222,211$ 445,628,772$ 44.20% 378,563,754$ 67,065,018$ 17.72% Water Utility Fund 60,726,490 60,726,490 36,169,959 59.56% 31,625,634 4,544,325 14.37% Sewer Utility Fund 73,500,825 78,500,825 46,862,494 59.70% 30,566,863 16,295,631 53.31% Cemetery Fund 750,000 750,000 357,008 47.60% 389,946 (32,938) -8.45% Solid Waste Utility Fund 39,577,957 39,577,957 23,944,437 60.50% 22,273,279 1,671,158 7.50% Water Recycling Fund 7,668,868 7,668,868 5,044,526 65.78% 4,213,861 830,665 19.71% TOTAL REVENUE 1,190,446,351$ 1,195,446,351$ 558,007,196$ 46.68% 467,633,337$ 90,373,859$ 19.33% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 2/29/2024 Use d 2/28/2023 Prior Year Change Electric Utility Fund 681,590,706$ 687,147,483$ 368,529,287$ 53.63% 388,156,615$ (19,627,328)$ -5.06% Water Utility Fund 54,015,131 56,447,989 34,599,174 61.29% 30,100,122 4,499,052 14.95% Sewer Utility Fund 53,980,961 55,447,527 25,271,326 45.58% 22,084,324 3,187,002 14.43% Cemetery Fund 1,534,349 1,534,349 664,008 43.28% 953,904 (289,896) -30.39% Solid Waste Utility Fund 38,782,622 42,490,732 22,491,161 52.93% 19,894,443 2,596,718 13.05% Water Recycling Fund 8,234,584 8,234,584 5,458,992 66.29% 5,346,148 112,844 2.11% TOTAL - Operating
Appropriations
838,138,353$ 851,302,664$ 457,013,948$ 53.68% 466,535,556$ (9,521,608)$ -2.04%
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
Revenues are tracking above the prior year while expenditures are tracking below 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 Electric Utility Fund, revenues from customer service charges, renewable energy, and wholesale power collections are tracking above the prior year. On the expenditure side, the generation and pumping expense are lower than prior year levels. The garbage collection expenditures in the Solid Waste Fund are higher than prior year levels. In the Sewer Utility Fund, costs related to the operations and maintenance of the Regional Wastewater Facility, co-owned with the City of San Jose, are tracking higher than prior year levels, while the high revenue collection is due to the bond proceeds collected in the debt service fund. Revenue and expenditures are tracking higher than prior year levels in the Water Utility Fund due to activity levels.
15 City of Santa Clara
Financial Status Report as of February 29, 2024
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actual revenue through February 29, 2024 totaled $29.7 million, consisting primarily of developer contributions in the Electric Utility Fund and sewer fees in the Sewer Utility Fund. Enterprise capital fund expenses totaled $58.9 million, or 10.2% of the amended budget. Similar to the general government capital funds, capital funds were carried over from FY 2022/23 as part of the FY 2023/24 and FY 2024/25 budget adoption process for those projects that were not expected to be completed by June 30, 2023. Additional necessary adjustments to the capital carryover amounts based on actual year-end expenditures were brought forward as part of the budgetary year-end report for FY 2022/23 approved by the City Council on December 12, 2023. These adjustments are reflected in the tables below.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 2/29/2024 Received Electric Utility Fund 38,500,092$ 10,071,673$ 48,571,765$ 28,211,046$ 58.08% Water Utility Fund - - - 55,605 N/A Sewer Utility Fund - - - 1,406,414 N/A Solid Waste Utility Fund 258,000 430,000 688,000 7,952 1.16% Convention Center Capital
Fund
- -
-
6,032 N/A
TOTAL - Revenue 38,758,092$ 10,501,673$ 49,259,765$ 29,687,049$ 60.27% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 2/29/2024 Use d Electric Utility Fund 383,682,041$ 135,149,829$ 518,831,870$ 40,787,713$ 7.86% Street Lighting (1) 139,007 3,527,530 3,666,537 64,464 1.76% Water Utility Fund 8,008,323 2,839,914 10,848,237 2,242,710 20.67% Sewer Utility Fund 18,409,160 24,967,761 43,376,921 14,439,207 33.29% Cemetery Fund 23,835 228,809 252,644 6,000 2.37% Solid Waste Utility Fund 1,036,757 15,085 1,051,842 985,933 93.73% Water Recycling Fund 50,000 - 50,000 28,200 56.40% Convention Center Capital
Fund
90,000 2,141,755 2,231,755 371,895 16.66%
TOTAL - CIP
Appropriations
411,439,123$ 168,870,683$ 580,309,806$ 58,926,122$ 10.15%
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
16 City of Santa Clara
Financial Status Report as of February 29, 2024
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.
17 City of Santa Clara
Financial Status Report as of February 29, 2024
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 54,299,298$
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 100,208,981$ 207,542,169$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
February 29, 2024
Donations to the City of Santa Clara
Donations totaling $1,000 were received in February 2024. The total donations of $117,321 for fiscal year 2023/24 are shown in the table below.
Department Feb-24
Fis cal Year
2023/24
Year To Date Designated Use
City Manager's Office - 251 Help Your Neighbor Parks & Recreation 1,000 4,900 Case Management Parks & Recreation - 2,320 Roberta Jones Jr. Theatre Parks & Recreation - 4,350 Senior Nutrition Donation Parks & Recreation - 30,500 Wade Brummal Police - 75,000 TEAM 200
TOTALS 1,000$ 117,321$