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MONTHLY FINANCIAL STATUS REPORT
March 2024
1 City of Santa Clara
Financial Status Report as of March 31, 2024
This report summarizes the City’s financial performance for the month ended March 31, 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 slower 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 expec t consumer spending growth to cool further and for the overall GDP growth to slow to under 1% over the second and third quarters of 2024. After that point, inflation is expected to gradually normalize to the Fed’s 2-perent target in 2025. In late 2024, interest rates are expected to fall but may stabilize at levels exceeding the pre-pandemic average.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 May 16, 2024
2 City of Santa Clara
Financial Status Report as of March 31, 2024
On a national level, the unemployment rate slightly increased from 3.8% in March 2024 to 3.9% in April 2024. In April, the number of unemployed persons was 6.5 million, a slight increase from 6.4 in March 2024.3
In the first quarter 2024, the Gross Domestic Product (GDP) increased at an annual rate of 1.3% according to the “second estimate released by the Bureau of Economic Analysis. This follows a GDP increase of 3.4% in the fourth quarter 2023. The GDP increase primarily reflected increases in consumer spending, state and local government spending, nonresidential fixed investment, and residential fixed investment that were partially offset by a decrease in private inventory investment.
Compared to the fourth quarter, the GDP deceleration in the fourth quarter primarily reflected slowdowns in consumer spending, exports, state and local government spending, and federal government spending.4
3 https://www.bls.gov/news.release/pdf/empsit.pdf
4 https://www.bea.gov/sites/default/files/2024-05/tech1q24-2nd.pdf
3 City of Santa Clara
Financial Status Report as of March 31, 2024
At the state level, the California unemployment remained unchanged at 5.3% between February and March 2024. This rate is higher compared to the 4.5% rate in March 2023. From March 2023 to March 2024, California added 217,700 nonfarm jobs, an increase of 1.2%.5
The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 4.2% in March 2024, down slightly from a revised 4.5% in February 2024, but above the March 2023 level of 3.2%. Between March 2023 and March 2024, employment in this region increased by 3,100 jobs, or 0.3%. Notable employment increases were in private education and health services (up 11,900 jobs), government (up 3,600 jobs), and leisure and hospitality (up 1,900 jobs), while information was down 7,400 jobs and manufacturing was down 3,900 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 $290.4 million to reflect carryover encumbrances from fiscal year 2022/23 and various budget amendments approved by the City Council through March 2024. This budget also accounts for items approved by the City Council on December 12, 2023, as part of the FY 2022/23 Budget Year-End Report.
5 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-march-2024/ 6 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of March 31, 2024
General Fund Revenues
As of March 31, 2024, $183.5 million or 66.6% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $15.1 million have occurred as budgeted.
Adopted Budget
Amended
Budget
Actual Through
03/31/2024
Percentage
Received
Actual Through
03/31/2023
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,524,000$ 60,524,000$ 35,119,146$ 58.03% 36,836,004$ (1,716,858)$ -4.66% Property Tax 85,800,000 87,143,000 54,025,391 62.00% 50,521,029 3,504,362 6.94% Transient Occupancy Tax 21,275,000 21,275,000 11,806,174 55.49% 11,219,932 586,242 5.23% Other Taxes 6,750,000 6,750,000 3,398,587 50.35% 3,407,398 (8,811) -0.26% Total Taxes 174,349,000 175,692,000 104,349,298 59.39% 101,984,363 2,364,935 2.32%
LICENSES & PERMITS
Business Licenses 6,000,000 6,000,000 3,429,759 57.16% 640,064 2,789,695 435.85% Fire Operation Permits 2,000,000 2,000,000 1,402,858 70.14% 1,450,474 (47,616) -3.28% Miscellaneous Permits 69,000 69,000 17,347 25.14% 40,719 (23,372) -57.40% Total Licenses & Permits 8,069,000 8,069,000 4,849,964 60.11% 2,131,257 2,718,707 127.56% FINES & PENALTIES 1,225,000 1,225,000 1,851,760 151.16% 283,587 1,568,173 552.98% INTERGOVERNMENTAL 520,000 587,306 510,432 86.91% 1,030,603 (520,171) -50.47% CHARGES FOR SERVICES 29,314,768 30,179,768 24,616,800 81.57% 24,388,202 228,598 0.94% SILICON VALLEY POWER TRANSFER 32,000,000 32,000,000 24,682,688 77.13% 21,482,915 3,199,773 14.89%
USE OF MONEY & PROPERTY
Interest 3,500,000 3,500,000 1,715,277 49.01% 1,772,376 (57,099) -3.22% Rent 12,397,660 13,431,960 9,214,619 68.60% 8,970,385 244,234 2.72% Total Use of Money & Property 15,897,660 16,931,960 10,929,896 64.55% 10,742,761 187,135 1.74% MISCELLANEOUS REVENUES 180,000 180,000 271,489 150.83% 2,648,833 (2,377,344) -89.75%
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% 7,968,589 (7,222,545) -90.64% Total Other Financing Sources 9,732,002 15,056,859 15,056,859 100.00% 50,626,394 (35,569,535) -70.26%
STADIUM OPERATION
Charges for Services 9,278,128 9,278,128 11,143,793 120.11% 8,857,315 2,286,478 25.81% Rent and Licensing 1,230,000 1,230,000 250,000 20.33% 710,000 (460,000) -64.79% Total Stadium Operation 10,508,128 10,508,128 11,393,793 108.43% 9,567,315 1,826,478 19.09% TOTAL GENERAL FUND 281,795,558$ 290,430,021$ 198,512,978$ 68.35% 224,886,230$ (26,373,252)$ -11.73% (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 March 31, 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 March 31, 2024, approximately $35.1 million has been collected, which is 4.7% lower than prior year collection levels.
While not yet fully reflected in the cash receipts through March, sales tax collections through three quarters of FY 2023/24 were down 7% compared to the prior fiscal year. Receipts were down 6.2% in the third quarter 2023, down 10.6% in the fourth quarter 2023, and down 4.5% in the first quarter 2024 when compared to the same quarters last fiscal year. The declines in the last three quarters follow four quarters of growth experienced in FY 2022/23. Given the strong performance last fiscal year, receipts can decline by 4% in the remaining quarter of FY 2023/24 and still meet the budgeted estimate of $59.6 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 5.3% from the first quarter 2023.
Property Tax: Property tax receipts totaling $54 million were received through March 2024, which is
6.9% 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 $90.7 million, which is $3.6 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 March 31, 2024, approximately $11.8 million was received, which is 5.2% 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 $3.4 million through March, which is on par with last fiscal year’s collection levels. Growth of 6% from the prior year is needed to meet the budgeted estimate of $6.75 million. Receipts through March reflect franchise tax collections of $2.7 million and approximately $0.7 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 license tax, fire operation permits, and miscellaneous permits and fees. Licenses and permits revenue collections total $4.8 million, or 60.1% of the $8.1 million budget. This represents a nearly 127.6% increase compared to prior year collection levels, primarily in the business tax category. Business tax receipts total $3.4 million through March, 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. This transition has necessitated the re-registration of every business that establishes
6 City of Santa Clara
Financial Status Report as of March 31, 2024
the amount of taxes due. After the first full year of implementation, the City will have a baseline for this tax. Based on collections through March, receipts may end the year below the budgeted estimate of $6.0 million.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue collected in this category through March was $1.9 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 March 31, 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 $0.6 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 March, collections of approximately $24.6 million are tracking slightly above par at 81.6% of the budget and are expected to slightly exceed the budgeted estimate by year-end. Revenues in this category are consistent with last year’s collections through the same period of $24.4 million. While collections in EMS transport and miscellaneous charges are higher than prior years, collections in planning and zoning fees and the technology fee are lower. Additionally, effective July 1, 2023, the Fire Development Services Fund was established and fire construction permitting fees are now booked in that 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 March, $24.7 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 March, $10.9 million has been collected, compared to $10.7 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 March 31, 2024, collections of $0.3 million have exceeded the budgeted estimate of $0.2 million 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.
Stadium Operation: Through March 2024, revenues of $11.4 million have exceeded the revenue estimate of $10.5 million largely due to the receipt of reimbursements for General and Administrative and public safety overhead costs above estimates. This reflects large reimbursements received in March for public safety costs related to both NFL and non-NFL events. Reimbursements can take
7 City of Santa Clara
Financial Status Report as of March 31, 2024
between three to six months from the event date due to the timing of third-party invoices and payment from the Stadium Manager, however all reimbursements not received by year end are accrued. The original budget included estimates based on ten NFL games and eight non-NFL Events. Since the San Francisco 49ers made it into the playoffs, a total of 12 NFL games were held. Additionally, a total of ten non-NFL events were held in the current fiscal year. Therefore, a budget amendment is recommended as part of this report to recognize reimbursements for two additional NFL games and two additional non-NFL events, offset by an increase to the Stadium Operation appropriation.
8 City of Santa Clara
Financial Status Report as of March 31, 2024
General Fund Expenditures
As of March 31, 2024, $209.7 million or 72.2% of the General Fund operating budget had been expended. Overall, expenditures in the General Fund are within budgeted levels through March.
Excluding transfers, expenditures totaled $197.9 million, or 71% of the budget, which is below the par level of 75% of the budget. Transfers of $11.8 million have occurred as budgeted.
Adopted Budget
Amended
Budget
Actual Through
03/31/2024
Percentage
Use d
Actual Through
03/31/2023
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 15,123,531$ 15,990,480$ 9,693,189$ 60.62% 3,287,596$ 6,405,593$ 194.84% City Council 1,124,281 1,131,037 846,899 74.88% 498,049 348,850 70.04% City Clerk 1,947,261 2,121,865 1,130,810 53.29% 1,549,525 (418,715) -27.02% City Manager 5,410,204 7,709,087 3,165,401 41.06% 3,951,745 (786,344) -19.90% City Attorney 3,076,516 3,196,951 2,128,357 66.57% 2,423,876 (295,519) -12.19% City Auditor 948,445 1,087,660 510,058 46.89% 518,213 (8,155) -1.57% Human Resources 4,300,090 4,464,113 2,462,154 55.15% 2,739,764 (277,610) -10.13% Finance 18,192,257 19,102,116 12,230,079 64.02% 12,424,905 (194,826) -1.57% Total General Government 50,122,585 54,803,309 32,166,947 58.70% 27,393,673 4,773,274 17.42% PUBLIC WORKS 24,857,521 26,270,541 18,199,396 69.28% 16,297,109 1,902,287 11.67% COMMUNITY DEVELOPMENT 5,121,256 5,227,061 3,731,971 71.40% 3,313,742 418,229 12.62% PARKS AND RECREATION 21,933,152 22,711,221 15,699,110 69.12% 14,762,998 936,112 6.34%
PUBLIC SAFETY
Fire 62,616,032 63,647,842 48,881,234 76.80% 50,231,876 (1,350,642) -2.69% Police 85,598,562 85,946,468 63,456,633 73.83% 60,505,486 2,951,147 4.88% Total Public Safety 148,214,594 149,594,310 112,337,867 75.10% 110,737,362 1,600,505 1.45% LIBRARY 11,135,937 11,229,696 7,635,195 67.99% 7,689,722 (54,527) -0.71% DEPARTMENTAL TOTAL 261,385,045 269,836,138 189,770,486 70.33% 180,194,605 9,575,880 5.31%
OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 1,198,809 1,353,809 1,353,809 100.00% 38,809 1,315,000 3388.39% 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% Operating Transfer Out - Reserves - - - N/A 5,598,215 (5,598,215) -100.00% Total Other Financing Uses 11,645,161 11,800,161 11,800,161 100.00% 17,569,612 (5,769,451) -32.84% STADIUM OPERATION 8,765,352 8,793,722 8,157,364 92.76% 7,164,127 993,237 13.86% TOTAL GENERAL FUND 281,795,558$ 290,430,021$ 209,728,011$ 72.21% 204,928,344$ 4,799,666$ 2.34% 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 March 31, 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 March 31, 2024, expenditures totaled $9.7 million, or 60.6% of the budget. These expenditures are below the par level of 75%, 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 March totaled approximately $2.1 million, which is 66.6% of the budget, which is below par. Spending is 12.2% below the prior fiscal year due to lower outside legal counsel services costs.
City Clerk: Through March, actual expenditures were tracking below budget at $1.1 million or approximately 53.3% of the budget. This expenditure level reflects a 27% decrease in spending compared to last fiscal year due to one-time Granicus costs that are paid every other year.
City Council: Through March, expenditures were at 74.9% 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 March 31, 2024 totaled $3.2 million, or 41.1% of the budget, which is below par for this time of the year. Expenditures are approximately 20% 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 March, departmental expenditures for the Planning and Housing and Community Services divisions totaled $3.7 million, or 71.4% of the budget, which is below par. This expenditure level is
12.6% 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 March, the Department’s expenditures totaled $12.2 million, or 64% of the budget, which is below par. This expenditure level is consistent with prior year levels.
Fire Department: Through March 31, 2024, actual expenditures totaled $48.9 million, or 76.8% of the budget, which is above par. These expenditures reflect a 2.7% decrease from expenditures through the same period last fiscal year. This is primarily because, as approved as part of the FY 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 March 31, 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 90.8% of the budget through March 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 March (from 49,025 to 64,858 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 March, the compensatory time payouts are also up 39% from the prior year and significantly above historical levels.
Expenditures are currently tracking to end the year approximately $1.25 million to $1.75 million above budget. A budget amendment of $1.75 million is included in this report to conservatively address the projected year-end overage.
Library Department: Through March, actual expenditures totaled $7.6 million, or 68% of the budget, which is below par, but consistent with expenditure levels last fiscal year. The Library continues to hire staff and fill vacancies to restore library hours, with higher spend in the as-needed and contractual services categories.
Parks and Recreation Department: Through March, actual expenditures totaled $15.7 million, or
69.1% of the budget, which is below par but higher than prior year actuals of $14.8 million. This is primarily due to higher spend in the salaries and benefits, contractual services, advertising and maintenance categories.
Police Department: Expenditures through March 31, 2024 are tracking slightly below par at $63.5 million, or 73.8% of the budget. This expenditure level is 4.9% 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. Stadium expenditures totaled $8.2 million through March 31, 2024, which is higher than prior year levels. This is primarily due to higher personnel spend, particularly in overtime. The original budget included estimates based on ten NFL games and eight non-NFL Events. Since the San Francisco 49ers made it into the playoffs, a total of 12 NFL games were held in the current fiscal year.
Additionally, a total of ten non-NFL events were held in the current Fiscal Year. Therefore, a budget
11 City of Santa Clara
Financial Status Report as of March 31, 2024
amendment is recommended as part of this report to increase the Stadium Operation appropriation which covers the costs associated with two additional NFL games and two additional non-NFL events, offset by an increase to the revenue estimate for Stadium reimbursements.
12 City of Santa Clara
Financial Status Report as of March 31, 2024
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of March 31, 2024. The amended budget reflects carryover encumbrances from fiscal year 2022/23 and budget amendments approved by the City Council through March 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 $16.1 million, while expenditures totaled $17.8 million through the end of March. Overall, both revenues and expenditures are tracking below the par level of 75%. 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 3/31/2024 Received 3/31/2023 Prior Year Change Housing Authority Fund 252,495$ 252,495$ 391,568$ 155.08% 80,839$ 310,729$ 384.38% City Affordable Housing Fund 1,166,720 1,166,720 522,892 44.82% 6,276,241 (5,753,349) -91.67% Housing Successor Fund 1,306,326 1,306,326 368,471 28.21% 496,001 (127,530) -25.71% Housing and Urban Development 3,106,041 5,712,147 840,254 14.71% 791,496 48,758 6.16% Building Development Services Fee
Fund
15,611,000 15,611,000 11,203,058 71.76% 15,212,076 (4,009,018) -26.35% Fire Development Services Fee
Fund
2,935,000 3,073,827 2,767,327 90.03% - 2,767,327 N/A TOTAL 24,377,582$ 27,122,515$ 16,093,570$ 59.34% 22,856,653$ (6,763,083)$ -29.59% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 3/31/2024 Use d 3/31/2023 Prior Year Change Housing Authority Fund 457,193$ 518,659$ 124,759$ 24.05% 168,988$ (44,229)$ -26.17% City Affordable Housing Fund 6,683,926 15,379,987 3,081,150 20.03% 6,720,953 (3,639,803) -54.16% Housing Successor Fund 873,227 1,216,887 604,151 49.65% 5,412,530 (4,808,379) -88.84% Housing and Urban Development 3,993,723 6,673,020 906,269 13.58% 1,288,596 (382,327) -29.67% Building Development Services Fee
Fund
13,689,592 17,218,230 10,814,545 62.81% 9,883,700 930,845 9.42% Fire Development Services Fee
Fund
3,109,073 3,247,900 2,313,415 71.23% - 2,313,415 N/A TOTAL 28,806,734$ 44,254,683$ 17,844,289$ 40.32% 23,474,767$ (5,630,478)$ -23.99%
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
13 City of Santa Clara
Financial Status Report as of March 31, 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 March 2024. As of March 31, 2024, the capital fund revenue totaled $17.1 million. In the Parks and Recreation Capital Fund, $3.3 million has been collected, which includes approximately $2.1 million in Mitigation Fee Act revenue.
REVENUES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 3/31/2024 Received Parks & Recreation -$ 4,189,995$ 4,189,995$ 3,335,645$ 79.61% Streets & Highways 15,684,432 17,422,990 33,107,422 10,421,148 31.48% Storm Drain 4,454,000 - 4,454,000 1,092,723 24.53% 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
- - - 94,397 N/A TOTAL 21,256,500$ 23,320,722$ 44,577,222$ 17,081,487$ 38.32%
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 March 2024. As of March 31, 2024, capital fund expenditures totaled $33.1 million, or 19.7% of the amended budget, well below par of 75%.
As part of the adoption of the FY 2023/24 and FY 2024/25 biennial operating budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2023.
Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2022/23 approved by the City Council approval on December 12, 2023. These adjustments are reflected in the tables referenced.
14 City of Santa Clara
Financial Status Report as of March 31, 2024
EXPENDITURES - FISCAL YEAR 2023/24
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 3/31/2024 Use d Parks & Recreation 15,799,144$ 24,181,336$ 39,980,480$ 9,911,528$ 24.79% Streets & Highways 51,126,802 43,717,468 94,844,270 18,445,809 19.45% Storm Drain 5,433,900 3,134,592 8,568,492 1,008,202 11.77% Fire 1,251,428 482,826 1,734,254 485,018 27.97% Library 49,658 251,447 301,105 33,677 11.18% Public Buildings 5,803,976 3,047,706 8,851,682 1,302,984 14.72% General Gov't - Other 4,403,201 6,651,782 11,054,983 1,416,888 12.82% City Affordable Housing Capital Fund - 1,600,000 - - NA Related Santa Clara Developer 1,500,691 - 1,500,691 476,005 31.72% 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 85,467,411$ 84,490,302$ 168,357,713$ 33,104,480$ 19.66%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
15 City of Santa Clara
Financial Status Report as of March 31, 2024
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of March 31, 2024. Overall, revenues and expenditures are tracking below budgeted levels.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 3/31/2024 Received 3/31/2023 Prior Year Change Electric Utility Fund 1,008,222,211$ 1,008,222,211$ 512,086,225$ 50.79% 435,036,034$ 77,050,191$ 17.71% Water Utility Fund 60,726,490 60,726,490 40,034,157 65.93% 35,056,719 4,977,438 14.20% Sewer Utility Fund 73,500,825 78,500,825 71,076,031 90.54% 33,832,442 37,243,589 110.08% Cemetery Fund 750,000 750,000 431,644 57.55% 437,160 (5,516) -1.26% Solid Waste Utility Fund 39,577,957 39,577,957 27,145,225 68.59% 25,273,560 1,871,665 7.41% Water Recycling Fund 7,668,868 7,668,868 5,297,662 69.08% 4,438,177 859,485 19.37% TOTAL REVENUE 1,190,446,351$ 1,195,446,351$ 656,070,944$ 54.88% 534,074,092$ 121,996,852$ 22.84% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 3/31/2024 Use d 3/31/2023 Prior Year Change Electric Utility Fund 681,590,706$ 687,147,483$ 414,388,570$ 60.31% 438,653,367$ (24,264,797)$ -5.53% Water Utility Fund 54,015,131 56,447,989 39,416,639 69.83% 33,606,516 5,810,123 17.29% Sewer Utility Fund 53,980,961 55,447,527 46,749,346 84.31% 22,814,066 23,935,280 104.91% Cemetery Fund 1,534,349 1,534,349 720,960 46.99% 1,073,226 (352,266) -32.82% Solid Waste Utility Fund 38,782,622 42,490,732 25,205,643 59.32% 22,618,086 2,587,557 11.44% Water Recycling Fund 8,234,584 8,234,584 5,565,596 67.59% 5,418,891 146,705 2.71% TOTAL - Operating
Appropriations
838,138,353$ 851,302,664$ 532,046,754$ 62.50% 524,184,152$ 7,862,602$ 1.50%
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
Overall, revenues and expenditures are tracking above the prior year. 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, interest, greenhouse gases, renewable energy, and wholesale power collections are tracking above the prior year. On the expenditure side, maintenance and generation and pumping expenses 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, and debt retirement costs 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.
16 City of Santa Clara
Financial Status Report as of March 31, 2024
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actual revenue through March 31, 2024 totaled $30.6 million, consisting primarily of developer contributions in the Electric Utility Fund and sewer fees in the Sewer Utility Fund. Enterprise capital fund expenses totaled $64.7 million, or 10.8% of the amended budget. Similar to the general government capital funds, capital funds were carried over from FY 2022/23 as part of the FY 2023/24 and FY 2024/25 budget adoption process for those projects that were not expected to be completed by June 30, 2023. Additional necessary adjustments to the capital carryover amounts based on actual year-end expenditures were brought forward as part of the budgetary year-end report for FY 2022/23 approved by the City Council on December 12, 2023. These adjustments are reflected in the tables below.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 3/31/2024 Received Electric Utility Fund 39,900,092$ 10,071,673$ 49,971,765$ 29,136,075$ 58.31% Water Utility Fund - - - 55,605 N/A Sewer Utility Fund - - - 1,412,507 N/A Solid Waste Utility Fund 258,000 430,000 688,000 9,152 1.33% Convention Center Capital
Fund
- -
-
6,032 N/A
TOTAL - Revenue 40,158,092$ 10,501,673$ 50,659,765$ 30,619,371$ 60.44% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 3/31/2024 Use d Electric Utility Fund 395,133,333$ 135,149,829$ 530,283,162$ 45,920,364$ 8.66% Street Lighting (1) 139,007 3,527,530 3,666,537 71,194 1.94% Water Utility Fund 9,671,923 2,839,914 12,511,837 2,553,177 20.41% Sewer Utility Fund 22,879,160 24,967,761 47,846,921 14,543,657 30.40% Cemetery Fund 23,835 228,809 252,644 6,000 2.37% Solid Waste Utility Fund 1,389,757 15,085 1,404,842 1,023,046 72.82% Water Recycling Fund 50,000 - 50,000 28,200 56.40% Convention Center Capital
Fund
215,000 2,141,755 2,356,755 508,324 21.57%
TOTAL - CIP
Appropriations
429,502,015$ 168,870,683$ 598,372,698$ 64,653,962$ 10.80%
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
17 City of Santa Clara
Financial Status Report as of March 31, 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.
18 City of Santa Clara
Financial Status Report as of March 31, 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
March 31, 2024
Donations to the City of Santa Clara
Donations totaling $460 were received in March 2024. The total donations of $119,281 for fiscal year 2023/24 are shown in the table below.
Department Mar-24
Fiscal Year
2023/24
Year To Date Designated Use
City Manager's Office 50 301 Help Your Neighbor Parks & Recreation 20 6,420 Case Management Parks & Recreation 50 50 Community Garden Parks & Recreation 340 2,660 Roberta Jones Jr. Theatre Parks & Recreation - 4,350 Senior Nutrition Donation Parks & Recreation - 30,500 Wade Brummal
Police - 75,000 TEAM 200
TOTALS 460$ 119,281$