5/7/24 Item#2
City Council Meeting
Item #2 - Study Session:
Review of the Proposed FY 2024/25 &
FY 2025/26 Biennial Capital
Improvement Program Budget and
1000000•00000 FY 2024/25 Operating Budget Changes
1852
THE MISSION CIT
May 7, 2024
Agenda
• Budget Calendar
• Proposed Budget Overview
• Economic Conditions/Ten-Year Financial Forecast Update • Capital Budget for FY 2024/25 and FY 2025/26 and Five-Year CIP • Operating Budget Amendments to FY 2024/25
• Council Priorities/Initiatives
• Questions and Answers
City of
Santa Clara
The Center of What's Possible
POST MEETING MATERIAL
1 Budget Calendar
City of
Santa Clara
Budget Calendar
• Oct - Nov 2023 - Departments submit CIP Project requests; turn over Operating Budget and begin work on proposed Municipal Fee Schedule
• December - March - Review of CIP and Operating Budget requests; prepare Ten-Year General Fund Forecast, complete review of Proposed Municipal Fee Schedule • April 9 - City Council Study Session on the Proposed Municipal Fee Schedule • April 23 - Public Hearing and Adoption of the Proposed Municipal Fee Schedule • April 29 - Proposed Capital Budget Released
• May 7 - City Council Study Session on Capital Budget and Operating Budget Changes • June 4 - Second City Council Study Session on Capital Budget and Operating Budget Changes • June 25 - City Council Adoption of Capital Budget, Gann limit, Operating Budget Changes and CIP Carryovers
City of
Santa Clara
The Center of What's Poss bie
2 Proposed Budget Overview
City of
Santa Clara
Proposed Budget Overview
• Two-year budget cycles
• This cycle focuses on the capital budget that ensures facilities are available to deliver services
• Adjustments to FY 2024/25 Operating Budget adopted
in June 2023
• Total Amended FY 2024/25 Budget of $1.35 B, up from
Adopted FY 2024/25 Budget of $1.23 B
• FY 2024/25 and FY 2025/26 Capital Budget ($642.6 M)
and Five-Year Capital Improvement Program (CIP)
($1.04 B)
City of
Santa Clara
The Center of Whats Pose
3 Capital Budget Overview
• 00
• Capital program is a mixed bag: well-funded for the utilities (88% of the CIP), investments in projects with dedicated funding (e.g., transportation), but falls well short in other areas
• There is insufficient funding to address unfunded needs of over $600 M identified in this CIP (parks, fire stations, storm and transportation systems, community facilities, libraries, and other City facilities)
• General Fund Capital Projects Reserve of $23.9 M to support all projects without a dedicated funding source; recommended use of $15.0 M in this CIP and $1.0 M set aside in last CIP
• Additional dedicated capital funding needed
City of
Santa Clara
The Centrol Whats Possib
Operating Budget Overview
• Updates to the FY 2024/25 Adopted Operating Budget
- Updates to revenue, labor, non-personnel,
resource/production costs for General Fund and all
operating funds
- General Fund structural deficit remains
- No capacity for restorations, service expansion,
ongoing capital maintenance, reserve contributions
- Unknown impact of ongoing labor negotiations
• Small FY 2024/25 General Fund shortfall balanced with FY 2023/24 and FY 2024:25
use of reserves; additional budget balancing actions Adopted Operating expected in next Biennial Operating Budget Budget
City of
• Collaboration with all City departments Santa Clara
City of
Santa Clara
The Certer of What's Possible
Proposed Budget Overview
City of Santa Clara Budget*
FY 2023/24 FY 2024/25 FY 2024/25
Fund Type Adopted Budget Adopted Budget Amended Budget
General Fund $ 281,795,558 $287,458,968 $306,591,330
Special Revenue Funds 48,639,709 37,111,226 41,458,963
Enterprise Funds 872,344,414 968,035,945 940,385,745
Internal Service Funds 39,606,414 41,304,602 45,524,215 Debt/Other* 374,983,049 40,658,134 152,273,904
Less (Transfers, Contributions, and Reserves)** (515,319,491) (247,455,561) (416,463,413) Subtotal Operating Budget $1,102,049,653 $1,127,113,314 $1,069,770,744 Capital Funds $657,486,151 $108,385,754 $286,566,592
Less (Transfers, Contributions, and Reserves)** (3,188,205) (1,454,000) (1,818,315) Subtotal Capital Budget $654,297,946 $106,931,754 $284,748,277 Total Budget $1,756,347,599 $1,234,045,068 $1,354,519,021 * Does not include the Stadium Authority Budget
** Adjusts for transfers, contributions and reserves to avoid double counting of the same funds (e.g., internal service funds are excluded)
City of
Santa Clara
The Center of What's Possible
Economic Conditions/Ten-Year
Financial Forecast Update
City of
10 Santa Clara
Theatre shuttons
5 Economic Conditions
UCLA March 2024 Forecast - Quarterly Real GDP Growth,
Seasonally Adjusted Annual Rates
City of Santa Clara
Single Family Residential Home Sales
$2,000.000
$1,800,000
14000
S10000o
$800,000
2013 2014 2015 2010 2017 2018 2019 2020 2021 2022 2023
-2.5 2020 2020
• Ave. Price a Med. Price 2022 2023 2024
Source: UCLA Anderson Forecast and U.S. Bureau of Economic Analysis City of Santa Clara
Number of Single Family Closed Sales Unemployment Rates (Not Seasonally Adjusted)
600
Dec Dec Dec Dec
500
2020 2021 2022 2023
Nation 6.5% 3.7% 3.3% 3.5%
California 8.8% 5.0% 4.1% 5.1%
100 San José-Sunnyvale-
6.2% 2.9% 2.4% 4.1%
Santa Clara MSA
2015 2016 2017 2018 2019 2020 2022 2023 Source: California Employment Development Department, U.S.
Bureau of Labor Statistics
Data Source: Santa Clara County Association of Realtors City of
Santa Clara
The Contero Whits Post be
General Fund Ten-Year Forecast
FY 2025-2035 General Fund Ten-Year Financial Forecast
$ in millions
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Projected $297.4 $309.9 $321.6 $333.8 $346.6 $360.2 $373.9 $388.4 $403.2 $418.8 $434.9 Revenues
Projected $298.3 $315.9 $333.5 $348.5 $364.9 $378.3 $393.2 $404.0 $418.6 $432.5 $448.9 Expenditures
Cumulative ($18.3) ($18.1) ($19.3) ($15.6) ($15.4) ($13.7) ($14.0) ($0.9) ($6.0) ($11.9) ($14.7)
(Shortfall)/ Surplus
• Use of reserves to balance FY 2024/25
• Structural deficit remains, future budget actions will continue to address budget challenges • No capacity for service restorations/expansion and deferred/unmet capital infrastructure needs • Forecast does not include potential additional revenue from Stadium (performance rent/excess revenue) and Related (future project phases)
City of
Santa Clara
The Center of Whats Possible
6 General Fund Ten-Year Forecast
2024/25 General Fund Revenues = $297.4 M
Transient
Charges for
Occupancy Tax, Services, $41.7 M,
$22.9 M, 7.7% 14.0%
$180.2 Mor
Sales Tax, $62.9 M,
61% of 21.2%
General SVP Transfer,
Fund - $34.5 M, 11.6%
Revenue
Property Tax, Other Revenue,
$94.4 M, 31.7% $41 M, 13.8%
City of
Santa Clara 13
The Center o Whuts Postbe
General Fund Ten-Year Forecast
2024/25 General Fund Expenditures = $298.3 M
Parks & Recreation, $23.1
Non-Departmental, M, 7.7%
$33.8 M, 11.3%
Library, $11.6 M,
3.9%
• $158 Ml, or 53% Police, $91.8 M, _ Public Works, $27.3
30.8% M, 9.2%
of the Budget
dedicated to
City Manager, Attorney,
Public Safety Clerk, and Council,
$13.2 M, 4.4%
Community
Development, $5.6 M,
1.9%
Finance and Human
Fire, $66.3 M, Resources, $25.6 M, 8.6%
22.2%
City of
Santa Clara
TARAMANS BARN
7 Capital Budget for FY 2024/25
and 2025/26 and Five-Year CIP
City of
15 Santa Clara
The Center of VAUts Putte
Capital Budget - Accomplishments
• Fairway Glen Neighborhood Park - completed the restroom at in March 2024, expanding accessibility in the popular park
• Montague Park - a new play area providing age-appropriate play structures for ages 2-5 and 6-12, group picnic areas, fitness areas, a half-size basketball court, walkways and hardscape areas, site furnishings, landscaping, and irrigation system; also renovated the existing community building to add a restroom, kitchen, and storage facility
• Magical Bridge Playground - groundbreaking occurred in May of 2023 and the park is slated to open to the public in the summer of 2024; the playground features innovative and all-inclusive play areas City of
Santa Clara
The Center of Whats Possible
8 Capital Budget - Accomplishments
• Substantially completed Phase I of the Stationary Standby Generators to replace nine emergency standby generators
• Enhanced public spaces in the Convention Center with interior furniture, added patio furniture for the second-floor terrace, and more food offerings with autonomous food machines, a sustainable garden and updates to the Vintage Valley market
• In 2023, replaced 4.2 miles of transmission line serving the Grizzly Hydroelectric power plant that was severed during the 2021 Dixie Fire • Oaks Junction Substation was completed and energized in July 2022 • In December 2023, Council certified the Environmental Impact Report and adopted the Downtown Precise Plan and Form Based Zoning Code City of
Santa Clara
The Center of What's Poss ble
Capital Budget - Accomplishments
• Completed 167,000 linear feet of CCTV inspection of sewer infrastructure and over 507,000 linear feet of flushing/jetting. • Completed repairs to approx. 12,000 linear feet of sanitary sewer main
• Received $3 million grant for the Anna Drive Neighborhood Flood Protection Project and began the design phase
• Completed Laurelwood Pump Station Rehabilitation project • Successfully maintained all 21 storm drain pump and lift stations to manage stormwater runoff
• Installed numerous trash capture devices to reduce trash loads entering waterways to comply with permit requirements
City of
Santa Clara
The Centero Whats Aust
9 Capital Budget - Accomplishments
• 00
• In November 2023, launched a new on-demand rideshare service in the southern half of Santa Clara called Silicon Valley (SV) Hopper • Completed preventative maintenance and rehabilitation for approximately 42 lane miles of street pavement in 2022 and 2023 • Completed construction work for the Santa Clara School Access Improvements and Uncontrolled Crosswalks Phase 1 projects • Human Resources rolled out 2023 Benefits Open Enrollment using Laserfiche forms to all employees
• Progress in Enterprise GIS program (e.g., street tree inventory mapping, Parks & Recreation facilities, sewer system GIS digital model)
• Received American Public Works Association (APWA) Award for Project of the Year for Serra Tanks Rehabilitation
City of
Santa Clara
The Canter of Mutt AsTHA
General Fund Capital Projects Reserve
(CPR) • 00
• General Fund CPR funded from CPR Funding in Five-Year CIP = $16.0 M excess revenues and expenditure
Storm Drain,
savings at the end of a fiscal year Parks and $ 4.7 M, 29.4% Trails, $ 0.9 M,
• Used to fund capital projects with no 5.6%
other funding source
Community Facilities,
• Current balance of $23.9 M proposed $ 1.6 M, 10.0% Technology & Equipment,
to be reduced by $15.0 M to $8.9 M; $ 2.7 M, 16.9%
additional $1.0 M funded from CPR
funds set aside in last CIP Administrative
Facilities, $ 2.7 M,
• Address high priority needs across 16.9%
program areas Transportation,
$ 3.4 M, 21.2%
City of
Santa Clara
20 The Center of Whats Possible
10 Proposed Use of General Fund CPR
• 00
FY FY FY 5-Year
2024/25 2025/26 2026/27 2027/28 2028/29 Total
Administrative Facilities
City Hall Gutter & Waterproofing Repair $485,000 $485,000 City Buildings Upgrade Lighting to LED $500,000 $500,000 Project
Electric Vehicle Charging (Fleet) $200,000 $200,000
Emergency Operations Center Security $294,000 $294,000
Upgrades
Morse Mansion Maintenance & Repair $50,000 $50,000
Repair to Historic Buildings $100,000 $100,000 $200,000 Repairs-Modifications to City Buildings $175,000 $175,000 $350,000 Fire Training Tower Renovation $504,000 $504,000
Triton Museum Repair & Modifications $35,000 $35,000 $70,000 Administrative Facilities Total $2,343,000 $310,000 $0 $0 $0 $2,653,000 City of
Santa Clara
21 The Center of What's Possible
Proposed Use of General Fund CPR
• • •
FY FY FY FY FY 5-Year
2024/25 2025/26 2026/27 2027/28 2028/29 Total
Community Facilities
Central Park Library - Public Safety $120,000 $120,000
Radio Coverage
Planning and Construction of Temporary
and/or Permanent International Swim $500,000 $500,000 $1,000,000 Center (ISC) Replacement Facility
Northside Branch Library - Automated $332,400
$332,400
Materials Handling System
Senior Center Natatorium HVAC Project - $172,500
$172,500
Phase 1
Community Facilities Total $1,124,900 $500,000 $0 $0 $0 $1,624,900 Parks and Trails
Park Improvements $470,000 $479,400 $949,400
Parks and Trails Total $470,000 $479,400 $0 $0 $0 $949,400 City of
Santa Clara 22
The Center of What's Possible
11 Proposed Use of General Fund CPR
• 00
FY FY FY FY FY 5-Year
2024/25 2025/26 2026/27 2027/28 2028/29 Total
Storm Drain
Bowers Parking Lot Rehabilitation $63,000 $63,000
Green Stormwater Infrastructure Design & $747,500
$747,500
Construction
SDPS Motor & Control Maintenance, Repair &
$315,000 $330,715 $645,750
Replace
Storm Drain Pump Station Remote Terminal $2,490,000
$690,000 $1,800,000
Unit (RTU) Upgrade
Storm Drain Pump Station (SDPS) Facility $74,550
$74,550
Maintenance & Repair
Storm Drain Repairs and Maintenance $150,000 $150,000 $300,000 Storm SCADA Fiber Ready Project $364,315 $364,315
Storm Drain Total $2,404,365 $480,750$1,800,000 $0 $0 $4,685,115 City of
Santa Clara
23 The Center of What's Poss-ble
Proposed Use of General Fund CPR
• ••
FY FY FY FY FY 5-Year
2024/25 2025/26 2026/27 2027/28 2028/29 Total
Technology and Equipment
City Hall Data Center HVAC & Fire System $350,000
$350,000
Remediation
Cyber Security Risk Mitigation $286,808 $286,808
Fire Defibrillator Replacement $70,000 $70,000
Enterprise Asset Management $100,000 $100,000
Financial & Human Resources Mgmt. System $308,401 $757,297 $448,896
(FHRMS) Update
Police Mobile Data Computer Replacement $515,804 $515,804 Fire Personal Protective Equipment $592,019
$592,019
Replacement
Utility Management Information System (UMIS) $1,000 $1,000 $1,000 $3,000 Enhancements
Technology and Equipment Total $2,364,527 $309,401| $1,000 $0 $0$2,674,928 City of
Santa Clara 24
The Certer of Whats PossIble
12 Proposed Use of General Fund CPR
000
FY FY FY FY FY 5-Year
2024/25 2025/26 2026/27 2027/28 2028/29 Total
Transportation
ADA Transition Plan Implementation
$250,000 $250,000 $500,000
(Public Right-of-Way)
Bridge Maintenance Program $710,000 $710,000
Sidewalk, Curb and Gutter Repair $350,000 $350,000 $700,000 Street Tree Services $438,720 $451,882 $465,438 $1,356,040 Traffic Engineering Consultant Support $100,000 $100,000 Transportation Total $1,138,720 $1,051,882 $1,175,438 $0 $0 $3,366,040 Total General Fund CPR Funded
Projects $9,845,512 $3,131,433 $2,976,438 $0 $0 $15,953,383 City of
Santa Clara
The Conter of What's Postbr
Unfunded Capital Needs
000
CAUTION
City of
Santa Clara
Tha Can Hot Whit AMaN
13 Unfunded Capital Needs
000
• Unfunded needs across several themes Five-Year CIP Unfunded Needs = $626 M* • Identified unfunded projects in CIP represent Community only a portion of the unmet/deferred Facilities, $ 211.6 M,
33.8%
infrastructure. Other needs include:
Administrative
- Storm Drain Master Plan - $290 million (in Facilities, $ 202.6 M, 2018 dollars) 32.4% Convention
Center,$ 15.8 M,
- Santa Clara Bicycle Plan Update 2018 -
2.5%
$39.3 million (in 2018 dollars)
- Santa Clara Pedestrian Master Plan - $194.0
Parks and Trails,
million (in 2019 dollars) $ 117.6 M, 18.8%
- Americans with Disabilities Act Self-
Evaluation and Transition Plan (Draft)- Transportation, Storm Drain, $ 32.4 M, 5.2% $ 45.0 M, 7.2%
$758.5 million (in 2024 dollars) Technology &
- Public buildings (e.g., new City Hall, existing Equipment, $ 1.2 M, 0.2% * $624 M General Fund need
City Hall, historic buildings, corporation yard)
City of
Santa Clara
Unfunded Capital Needs
• 00
International Swim Center
• Facility closed in January 2024 due to health and
safety concerns
• Exploring options to re-open facility, if possible
• Funding
- CIP funding: $1.0 M from General Fund CPR as seed
funding; if Council chooses temporary refurbishment
option, funds could be reallocated to that use with
additional funds appropriated if needed
- Earmark request submitted: $2.0 M requested from
Assemblymember Low
City of
Santa Clara
The Cooler of Whit potHe
14 CIP Projects by Theme
000
2024/25 2025/26 Biennial Five-Year
Theme Budget Budget Budget CIP
Administrative Facilities $2,343,000 $310,000 $2,653,000 $2,653,000 Community Facilities 2,771,934 500,000 3,271,934 3,271,934 Convention Center 2,150,000 2,150,000 2,150,000
Electric Utility 217,697,515 304,154,500 521,852,015 751,516,215 Other Community Projects 6,080,775 5,411,998 11.492,773 24,281,792 Parks and Trails 3,550,760 2,158,838 5.709.598 10,209,598 Sewer Utility 19,570,472 22,216,632 41,787,104 132,647,325 Solid Waste 788,000 812,000 1,600,000 4,180,000
Storm Drain 2,404,365 480,750 2,885,115 4,685,115
Technology and Equipment 2,993,823 751,000 3,744,823 6,213,623 Transportation 18,566,948 14,470,938 33,037,886 74,122,562 Water and Recycled Water Utilities 6,195,000 6,225,000 12,420,000 26,320,000 TOTAL $285,112,592 $357,491,656 $642,604,248 $1,042,251,164 City of
Santa Clara
The Center of whats Postbie
Proposed CIP - Administrative Facilities
Theme • 00
Five-Year CIP: $2.7 million
• Fire Training Tower Renovation ($504 K)
• Emergency Operations Center Security Upgrades ($294 K) • City Hall Gutter and Waterproofing Repair ($485 K)
• City Buildings - Upgrade Lighting to LED ($500 K)
• Electric Vehicle Charging (Fleet) ($200 K)
• Maintenance and Repair of City and Historic Buildings ($670 K) Major Funding Sources: General Fund CPR
City of
Santa Clara
30 15
Proposed CIP - Community Facilities Theme
000
Five-Year CIP: $3.3 million
• Planning and Construction of Temporary and/or Permanent International Swim Center (ISC) Replacement Facility ($1.0 M) • Bowers Roof/Building Replacement Project ($1.2 M)
• Northside Branch Library - Automated Materials Handling System ($332 K)
• Parks Service Center Improvements ($235 K)
• Lawn Bowls Improvements ($175 K)
• Senior Center Natatorium HVAC- Phase ($173 K)
• Central Park Library - Radio Coverage ($120 K)
Major Funding Sources: General Fund CPR, Mitigation Fee Act & Quimby Act fees, developer contributions
City of
Santa Clara
The Center of What's Poss ble
Proposed CIP - Convention Center Theme
Five-Year CIP: $2.2 million
• Santa Clara Convention Center Condition Assessment
Repair ($2.2 M); replacement of air wall system in the
Grand Ballroom and various upgrades to bathrooms
• Complete the indoor digital signage
project (wayfinding, event/meeting
Main
announcements, and advertising) and Kitchen
update the kitchens using existing funds
Major Funding Sources: Convention
Mission
Kitchen
Center Enterprise Fund, OVG360 and
Levy Contributions
City of
Santa Clara
32 16
Proposed CIP - Electric Utility Theme
• • •
Five-Year CIP: $751.5 million
• Northern Receiving Station (NRS) Upgrades and Expansion ($134.0 M) Santa Clara
• Kifer Receiving Station (KRS) Rebuild and Replacement ($107.0 M) • Scott Receiving Station (SRS) Rebuild and Replacement ($98.0 M) • Transmission Loop 1 ($76.3 M)
• Homestead Substation Rebuild ($75.1 M)
• New Business Estimate Work ($54.6 M)
• NRS-KRS 115kV Line ($38.1 M)
Major Funding Sources: Transfer from Electric Utility Fund (customer service charges), debt financing, developer
contributions, load development fees
City of
Santa Clara
The Center of What's Possib
Proposed CIP - Other Community Projects
• • •
Theme
Five-Year CIP: $24.3 million
Tasman East Area
• Related Santa Clara ($4.0 M) •one ins
• Tasman East Specific Plan ($3.0 M)
• Public Works Capital Projects Management
Services ($17.3 M)
Major Funding Sources: General Fund,
developer contributions
City of
Santa Clara
17 Proposed CIP - Parks and Trails Theme
• 00
Five-Year CIP: $10.2 million
• Community Park North - Phase 1 ($5.0 M)
• Central Park Access & Parking Improvements ($3.0 M)
• Park Improvements ($949 K)
• Earl Carmichael Park Playground Rehabilitation ($508 K) • Mary Gomez Park Playground Rehabilitation ($414 K)
• Maywood Park Playground Rehabilitation ($338 K)
Major Funding Sources: Mitigation Fee Act & Quimby Act
fees, developer contributions, General Fund CPR
City of
Santa Clara
The Center of What's Possible 35
Proposed CIP - Sewer Utility Theme
Five-Year CIP: $132.6 million
• San Jose-Santa Clara Wastewater Facility ($86 M)
• Sanitary Sewer Improvements ($10.2 M)
• Sanitary Sewer Capacity Improvements ($30.0 M)
• Sanitary Sewer Condition Assessment ($5.0 M)
• Sanitary Sewer Hydraulic Modeling ($1.4 M)
Major Funding Sources: Transfer from Sewer Utility
Fund (customer service charges), debt financing
City of
Santa Clara
The Contero What Poete
18 Proposed CIP - Solid Waste Theme
• ••
Five-Year CIP: $4.2 million
• Sanitary Landfill Development - Post Closure
($4.2 M)
- Regular monitoring, data collection, reporting, and
landfill gas flare source testing
- Construction of monitoring wells, well
abandonments, roadway and fence repairs
- Maintenance and repair of the landfill gas
collection system
Major Funding Sources: Transfer from Solid Waste
Operating Fund (customer service charges),
developer contributions
City of
Santa Clara
the Centero What Foss
Proposed CIP - Storm Drain Theme
• • •
Five-Year CIP: $4.7 million
• Storm Drain Pump Station Remote Terminal Unit (RTU)
Upgrade ($2.5 M)
• Green Stormwater Infrastructure Design and
Construction ($748 K)
• Storm Drain Pump Station Motor and Control
Maintenance, Repair and Replacement ($646 K)
• Storm SCADA Fiber Ready ($364 K)
• Storm Drain Repairs and Maintenance ($300 K)
Major Funding Sources: General Fund CPR, grants
City of
Santa Clara
The Center of What's Possible
19 Proposed CIP - Transportation Theme
• 00
Five-Year CIP: $74.1 million
• Annual Street Maintenance and Rehabilitation ($46.2 M) • Tasman Complete Streets Plan 2021 Improvements Phase 1 - North San Jose Settlement ($6.3 M)
• Traffic Signal Enhancements ($3.3 M)
• Uncontrolled Crosswalks Improvements ($2.8 M)
• Sidewalk, Curb and Gutter Repair ($2.6 M)
• Pedestrian and Bicycle Enhancement Facilities ($2.0 M) • Street Tree Services ($1.4 M)
• Cupertino-Santa Clara On-Demand Shuttle ($1.3 M)
Major Funding Sources: gas tax, vehicle registration fees, SB1-Road Repair and Accountability Act, County Measure B, traffic mitigation fees, grants, General Fund CPR
City of
Santa Clara
The Conter of WITS FOSSOR
Proposed CIP - Water & Recycled Water
• 0
Utilities Theme
Five-Year CIP: $26.3 million
• Distribution System Replacement/Restoration ($15.3 M) • New and Replacement Wells ($5.7 M)
• Building and Grounds ($3.4 M)
• SCADA Improvements ($1.3 M)
• Recycled Water System Mains and Services ($600 K)
Major Funding Sources: Transfer from Water
Utility and Recycled Water Utility Operating Funds
(customer service charges)
City of
Santa Clara
20 Proposed CIP - Technology and Equipment
Theme
Five-Year CIP: $6.2 million
• Geospatial Information System (GIS) Enterprise System ($1.5 M) • Utility Management Information System Enhancements ($1.5 M) • FHRMS Update Project ($1.2 M)
• Fire Protective Equipment Replacement ($592 K) and Fire Defibrillator Replacement ($70 K); shifted to operating starting in FY 2025/26 • Police Vehicle Mobile Data Center Computer Replacement ($350 K) • Cyber Security Risk Mitigation ($410 K); shifted to operating starting in FY 2025/26 • City Hall Data Center HVAC Remediation ($350 K)
Major Funding Sources: General Fund CPR
City of
Santa Clara
The Confer of Whats Possible
Operating Budget Amendments
to FY 2024/25
City of
42 Santa Clara
21 FY 2024/25 Operating Budget
Amendments
• FY 2023/24 and FY 2024/25 Adopted Operating Budget approved June 2023 • FY 2024/25 Operating Budget amendments necessary to:
- update revenue estimates for the General Fund and other funds - make adjustments to account for updated labor and non-personnel costs in the General Fund and other funds
- Update resources and production costs in Enterprise Funds - Update positions to reflect adjustments and reclassifications • Described in the Appendices section of the Proposed Budget City of
Santa Clara
The Canter of With Amana
General Fund Budget Actions
• Use of the Budget Balancing Reserve ($0.4 M) and the Budget Stabilization Reserve ($0.5 M) addresses the FY 2024/25 General Fund shortfall of $0.9 M • Limited budget actions using current year savings to support key areas:
- Police Park Patrols: adds reserve officer funding of $230,000 for parks patrols on weekdays from 3 p.m. to 11 p.m., Saturdays from 7 a.m. to 8 p.m., and Sundays from 11 a.m. to 7 p.m. - Library Hours: adds four of library service at Central Library on Sundays - Senior Center Trips: restores funding for approximately 10 local trips annually that would be partially offset by revenue; the net cost is estimated at $13,100 • Structural Deficit remains - Additional budget balancing actions expected in next FY Biennial Operating Budget (June 2025) to address projected General Fund shortfalls City of
Santa Clara
The Center of What's Possible
22 General Fund Reserves
• Budget Stabilization Reserve (BSR) - Used for weathering economic downturns, emergency financial crisis or disaster situations - Per Council policy, the BSR target is 25% of the expenditure budget - The proposed FY 2024/25 budget principles would continue to allow this reserve to drop to a minimum of 15% of expenditures
- $53.8 million in the FY 2024/25 Proposed Budget or 17.6% of expenditures • Land Sale Reserve - Allocates the proceeds from the sale of City-owned land - $18.5 million in FY 2024/25 Proposed Budget
• Capital Projects Reserve - Used to support the City's CIP - The target funding level is a minimum of $5 million
- Use $15.0 million of the $23.9 million reserve to address projects in this CIP; use $1.0 million previously reserved for projects funded in the out years of the last CIP - $8.9 million modest balance in the reserve (to cover $600 M+ needs) City of
Santa Clara
The Cerfer of Whats Possible
General Fund Reserves
FY 2023/24 FY 2024/25
Reserve Type Current Balance Proposed Balance
General Fund Budget Stabilization $54.3 M $53.8 M*
(BSR)
General Fund Capital Projects $23.9 M $8.9 M
Land Sale Reserve $18.5 M $18.5 M
Pension Trust (General Fund) $27.5 M $27.5 M
* The BSR reserve is at 17.6% of the FY 2024/25 expenditure budget City of
Santa Clara
46 23
Budget Stabilization Reserve
Budget Stabilization Reserve
• Budget Stabilization Reserve has ($ in millions)
90 dropped significantly from $80 M
80 • FY 2024/25 BSR totals $53.8 M, or 70
17.6% of expenditures; would need 60
to total $76.6 M to reach 25% 50
40 • Other one-time sources used for
30 budget balancing 20
- Land Sale Reserve ($11 M) 10
- Federal Stimulus Funds ($26 M) FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 City of
Santa Clara
The Center of Whats Poss ble
Council Priorities/Initiatives
City of
48 Santa Clara
24 Council Priorities/Initiatives
Council Priority Setting
• Two Council Priority Setting Sessions (March 25th and April 3rd) • Exercises to identify and prioritize Council priorities and initiatives Addressing Top Priorities
• Staff is working on the prioritized list and will come forward separately • $250,000 in one-time funds budgeted in current year to address priorities City of
Santa Clara
The Center of What's Possible
Questions and Answers
City of
50 Santa Clara
The Career of Whut PELLIO
25 City Council Meeting
Item #2 - Study Session:
Review of the Proposed FY 2024/25 &
FY 2025/26 Biennial Capital
D0..Dd Improvement Program Budget and
FY 2024/25 Operating Budget Changes
1852
THE MISSION CIT
May 7, 2024
26