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MONTHLY FINANCIAL STATUS REPORT
August 2024
1 City of Santa Clara
Financial Status Report as of August 31, 2024
This report summarizes the City’s financial performance for the month ended August 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
The June 2024 UCLA Anderson Forecast assumes no recession: “The oft-predicted but never seen “recession next quarter” has now faded in the face of expansionary fiscal policy, a new national industrial policy, and a consumer who is happy to continue spending. As inflation slowly works its way back to the neighborhood of 2.2% to 2.7% per annum and is being kept high due primarily to residential rents, automobile repair, and new health insurance premia, we expect Fed policy to take a neutral stance and economic growth to rebound to trend rates. Nevertheless, there are risks to the forecast. A protracted shutdown of the government has been averted, but the possibility still exists. Will geopolitical events upset the current growth pattern? Will the election result in different national economic policies in 2025? These risks are substantial and bear watching as they could well drive the economy off of the current growth path that is predicted to return the U.S. economy to trend 2.5% growth. Due to those uncertainties, the forecast contains weaker business investment in the 3rd and 4th quarters of this year corresponding to a wait-and-see approach by some firms until after the November election. The upside of the forecast is productivity growth due to new technology that drives higher wages and higher GDP.
While our view of AI and robotics is that the impact will be felt after 2026 as technology adoption tends to take time, current tight labor markets could accelerate that.”1 Quarterly Real GDP Growth, Seasonally Adjusted Annual Rates
1 UCLA Anderson Forecast, June 2024, The U.S. Economic Outlook: Near-Term Supply Constrained Growth
2 City of Santa Clara
Financial Status Report as of August 31, 2024
The Conference Board Economic Forecast for the US Economy assumes GDP growth will slow, but not plunge, in 2024. “Real GDP is expected to rise by 2.4 percent year-over-year in 2024. Nonetheless, the economy is expected to lose momentum in H2 2024 as high prices and elevated interest rates sap domestic demand. This will provide slower momentum heading into 2025, which may constrain growth in that year to just 1.7 percent year -over-year, despite expectations of stronger quarterly annualized growth as the year progresses.2
On a national level, the unemployment rate changed little from 4.3% to 4.2% between July and August 2024. In August, the number of unemployed persons totaled 7.1 million, a slight decrease of 48,000 from July.3
In the second quarter 2024 third estimate, the Gross Domestic Product (GDP) increased by 3.0%, following a GDP increase of 1.6% in the first quarter. The increase in real GDP primarily reflected increases in consumer spending, private inventory investment, and nonresidential fixed investment.4
2 https:///www.conference-board.org/research/us-forecast, The Conference Board Economic Forecast for the US Economy, Updated September 17, 2024
3 https://www.bls.gov/news.release/pdf/empsit.pdf
4 https://www.bea.gov/news/2024/gross-domestic-product-third-estimate-corporate-profits-revised-estimate-and-gdp-0
3 City of Santa Clara
Financial Status Report as of August 31, 2024
At the state level, the California unemployment rate increased slightly to 5.3% in August 2024 from
5.2% in July 2024. This rate is higher compared to the 4.8% rate in August 2023. Over the past year, California employers have added 287,100 nonfarm jobs.5
The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 4.5% in August 2024, unchanged from July 2024, and above the August 2023 estimate of 4.1%. Between August 2023 and August 2024, employment in this region increase by 7,300 jobs, or 0.6%. The largest increases were in private education and health services (up 12,200 jobs) and professional and business services (up 6,100 jobs). Notable employment reductions were in information and manufacturing (each down 6,100 jobs) and construction (down 2,700).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 2024/25 was $310.7 million. The amended budget for revenues and expenditures was adjusted to $316.9 million to reflect carryover encumbrances from fiscal year 2023/24 and various budget amendments approved by the City Council through August 2024.
While it is very early in the fiscal year and limited data is available, General Fund revenues and expenditures are tracking within estimated levels.
5 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-August-2024/ 6 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of August 31, 2024
General Fund Revenues
As of August 31, 2024, $15.5 million or 5.3% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $21.4 million have occurred as budgeted.
This very low collection level through August is largely due to the timing of payments. In some categories, the revenues received in July account for activity that occurred in FY 2023/24 and those revenues are accrued back to that year. In other cases, such as property tax, most payments are scheduled to occur later in the fiscal year.
Adopted Budget
Amended
Budget
Actual Through
8/31/2024
Percentage
Received
Actual Through
8/31/2023
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 62,900,000$ 62,900,000$ -$ 0.00% -$ -$ N/A Property Tax 94,391,000 94,391,000 82,066 0.09% 76,981 5,085 6.61% Transient Occupancy Tax 22,850,000 22,850,000 931,003 4.07% 722,881 208,122 28.79% Other Taxes 6,950,000 6,950,000 352,629 5.07% 194,799 157,830 81.02% Total Taxes 187,091,000 187,091,000 1,365,698 0.73% 994,661 371,037 37.30%
LICENSES & PERMITS
Business Licenses 6,000,000 6,000,000 1,603,747 26.73% 666,092 937,655 140.77% Fire Operation Permits 2,010,000 2,010,000 382,287 19.02% 125,125 257,162 205.52% Miscellaneous Permits 55,000 55,000 18,305 33.28% 50,409 (32,104) -63.69% Total Licenses & Permits 8,065,000 8,065,000 2,004,339 24.85% 841,626 1,162,713 138.15% FINES & PENALTIES 1,452,000 1,452,000 142,847 9.84% 435,491 (292,644) -67.20% INTERGOVERNMENTAL 970,000 970,000 354,605 36.56% 9,654 344,951 3573.14% CHARGES FOR SERVICES 30,829,954 30,829,954 3,765,484 12.21% 2,043,440 1,722,045 84.27% SILICON VALLEY POWER TRANSFER 34,500,000 34,500,000 5,910,850 17.13% - 5,910,850 N/A
USE OF MONEY & PROPERTY
Interest 6,212,000 6,212,000 (1,076,046) -17.32% (1,061,296) (14,750) 1.39% Rent 13,028,187 13,028,187 2,324,113 17.84% 1,390,065 934,048 67.19% Total Use of Money & Property 19,240,187 19,240,187 1,248,067 6.49% 328,769 919,298 279.62% MISCELLANEOUS REVENUES 215,550 215,550 170,492 79.10% 56,122 114,370 203.79%
LAND PROCEED - - - N/A - - N/A
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 6,964,827 13,403,241 13,403,241 100.00% 8,012,113 5,391,128 67.29% Operating Transfer In - Fund Balances(1) 6,162,369 6,162,369 6,162,369 100.00% 4,759,683 1,402,686 29.47% Operating Transfer In - Miscellaneous 575,821 575,821 575,821 100.00% 746,044 (170,223) -22.82% Total Other Financing Sources 15,157,017 21,595,431 21,595,431 100.00% 14,971,840 6,623,591 44.24%
STADIUM OPERATION
Charges for Services 11,705,481 11,705,481 570,405 4.87% 221,494 348,911 157.53% Rent and Licensing 1,472,000 1,472,000 - 0.00% - - N/A Total Stadium Operation 13,177,481 13,177,481 570,405 4.33% 221,494 348,911 157.53% TOTAL GENERAL FUND 310,698,189$ 317,136,603$ 37,128,218$ 11.71% 19,903,096$ 17,225,122$ 86.54% (1) The Operating Transfer In - Fund Balances includes the carryover encumbrances of open purchase orders as of June 30, 2024 and mid year budget amendment from reserves.
Function
CITY OF SANTA CLARA
GENERAL FUND
REVENUE OVERVIEW AND COMPARISON BY TYPE
FISCAL YEAR 2024/25 PY REVENUE COMPARISON
5 City of Santa Clara
Financial Status Report as of August 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 August 31, 2024, no sales tax has been recorded. Given the timing of payments, the sales tax payments received through August accounted for activity in the prior fiscal year and those funds were accrued to last year.
Property Tax: $0.1 million in property tax receipts were received in August 2024. The majority of property tax revenue is collected in February and April each year. Based on initial information from the County of Santa Clara, property tax receipts are projected to end the year slightly above the Adopted Budget estimate of $94.4 million.
Transient Occupancy Tax (TOT): TOT is calculated as a percentage of City hotel/motel room charges. The City’s TOT rate is 12.5%. Through August 31, 2024, approximately $0.9 million was received, which reflects a 28.8% increase when compared through the same period last fiscal year.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected approximately $0.4 million through August, which is 81% higher than last fiscal year’s collection levels.
Receipts through August primarily reflect franchise tax collections, with minimal documentary transfer tax revenue collected.
Licenses & Permits: Includes business licenses, fire operation permits, and miscellaneous permits and fees. Effective FY 2023/24, the City implemented a new Business License Tax methodology which is reflected in the collections recorded this fiscal year. Licenses and permits revenue collections are tracking above par with receipts totaling $2.0 million, or 24.8% of the $8.1 million budget.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue collected in this category through August was $0.1 million. Collections in this category are tracking below the prior year.
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 August 31, 2024, approximately $0.4 million has been collected, or 36.6% of the $970,000 budget
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through August, collections totaled approximately $3.8 million or 12.2% of the budget. This reflects an 84% increase compared to last year’s collections, primarily due to higher receipts from engineering fees, Emergency Medical Services (EMS) fees, and interdepartmental charges.
Silicon Valley Power Transfer: In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund. 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.
6 City of Santa Clara
Financial Status Report as of August 31, 2024
Use of Money & Property: Includes realized investment income and rental income. Through August, $1.2 million has been collected, compared to $0.3 million last fiscal year. This increase is due to higher rents, specifically right-of-way, collected in the current year. This is mainly due to the timing of when the right-of-way revenue was recorded, when compared to last fiscal year. The negative amount under the interest category reflects an accrual to the prior year.
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through August, collections total $0.2 million, compared to $56,122 collected in the prior year.
Stadium Operation: Through August, approximately $0.6 million has been collected through charges for services.
7 City of Santa Clara
Financial Status Report as of August 31, 2024
General Fund Expenditures
As of August 31, 2024, $68.1 million or 21.5% of the General Fund operating budget had been expended, which is higher than prior year expenditure levels. Excluding transfers, expenditures totaled $50.1 million, or 16.7% of the budget, which is at par. Transfers of $18.0 million have occurred as budgeted. Overall, expenditures in the General Fund are at budgeted levels through August.
Adopted Budget
Amended
Budget
Actual Through
8/31/2024
Percentage
Use d
Actual Through
8/31/2023
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 17,622,136$ 17,841,022$ 4,194,289$ 23.51% 688,588$ 3,505,701$ 509.11% City Council 1,196,923 1,196,923 204,030 17.05% 170,308 33,722 19.80% City Clerk 2,102,267 2,104,267 347,485 16.51% 214,143 133,342 62.27% City Manager 8,222,051 9,030,316 794,041 8.79% 436,949 357,092 81.72% City Attorney 3,357,661 3,440,037 507,233 14.74% 409,308 97,925 23.92% Human Resources 4,845,256 5,019,594 630,892 12.57% 508,305 122,587 24.12% Finance 21,008,682 21,937,208 3,800,225 17.32% 2,351,131 1,449,094 61.63% Total General Government 58,354,976 60,569,367 10,478,195 17.30% 4,778,732 5,699,463 119.27% PUBLIC WORKS 26,347,463 28,132,690 4,313,010 15.33% 3,492,899 820,111 23.48% COMMUNITY DEVELOPMENT 5,575,313 5,636,381 813,488 14.43% 826,894 (13,406) -1.62% PARKS AND RECREATION 23,172,047 23,931,989 3,854,407 16.11% 3,448,033 406,374 11.79%
PUBLIC SAFETY
Fire 66,292,191 66,954,133 12,075,616 18.04% 10,323,737 1,751,879 16.97% Police 92,074,298 92,481,021 14,738,053 15.94% 12,474,370 2,263,683 18.15% Total Public Safety 158,366,489 159,435,154 26,813,669 16.82% 22,798,107 4,015,562 17.61% LIBRARY 11,732,505 12,212,058 2,043,071 16.73% 1,587,753 455,318 28.68% DEPARTMENTAL TOTAL 283,548,793 289,917,639 48,315,840 16.67% 36,932,418 11,383,422 30.82%
OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 626,778 626,778 626,778 100.00% 1,198,809 (572,031) -47.72% Operating Transfer Out - Debt Services 1,405,940 1,405,940 1,405,940 100.00% 1,402,440 3,500 0.25% Operating Transfer Out - Maintenance Dtrct 977,546 977,546 977,546 100.00% 942,413 35,133 3.73% Operating Transfer Out - Cemetery 823,000 823,000 823,000 100.00% 796,000 27,000 3.39% Operating Transfer Out - CIP 14,204,882 14,204,882 14,204,882 100.00% 7,305,499 6,899,383 94.44% Total Other Financing Uses 18,038,146 18,038,146 18,038,146 100.00% 11,645,161 6,392,985 54.90% STADIUM OPERATION 9,111,250 9,180,818 1,741,219 18.97% 2,374,727 (633,508) -26.68% TOTAL GENERAL FUND 310,698,189$ 317,136,603$ 68,095,205$ 21.47% 50,952,306$ 17,142,899$ 33.64% Function
CITY OF SANTA CLARA
GENERAL FUND
EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2024/25 PY EXPENDITURES COMPARISON
8 City of Santa Clara
Financial Status Report as of August 31, 2024
General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances by program.
Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. Through August 31, 2024, expenditures totaled $4.2 million, or 23.5% of the budget. These expenditures are above the par level of 16.7%, and significantly higher than prior year levels. This increase is due to internal service allocation charges, as they were not yet reflected in the August 2023 data, as well as higher insurance expenditures.
City Attorney: Actual expenditures through August totaled approximately $0.5 million, which is 14.7% of the budget, which is below par. Spending is significantly higher than the total expenditures through the same time last fiscal year by 23.9%. This increase is a result of higher spend primarily in the salaries and benefits categories and the outside legal services category.
City Clerk: Through August, actual expenditures were tracking within budget at $0.3 million or approximately 16.5% of the budget. This expenditure level reflects a 62.3% increase compared to last fiscal year due to higher spend in the software subscription category and internal service allocation charges that were not yet being reflected in the August 2023 data.
City Council: Through August, expenditures were at 17% of budget, which is slightly above par.
Compared to the same period through last fiscal year, this reflects a significant increase in expenditures due to higher salaries and benefits spending and, similar to other departments, internal service allocation charges that were not yet reflected in the August 2023 data.
City Manager: The actual expenditures through August totaled $0.8 million, or 8.8% of the budget, which is below par for this time of the year. Expenditures are approximately 82% higher compared with the spending level through the same period last fiscal year. The increase is attributable to the timing of the internal service allocation charges that were not yet being reflected in the August 2023 data as well as higher spend in the salaries and benefits and advertising categories.
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 August, departmental expenditures for the Planning and Housing and Community Services divisions totaled $0.8 million, or 14.4% of the budget, which is below par of 16.7%. This expenditure level is 1.6% below the prior year as a result of lower salaries and benefits costs that were partially offset by higher internal service allocation charges.
Finance Department: Through August, the Department’s expenditures totaled $3.8 million, or 17.3% of the budget, which is slightly above par. This expenditure level was approximately 61.6% higher than through the same period last year. Similar to the other departmental tracking, this is a result of the timing of the internal service allocation charges, which were not yet reflected in the August 2023 data.
Additionally, current year spend reflects higher salaries and benefits and contractual services costs.
9 City of Santa Clara
Financial Status Report as of August 31, 2024
Fire Department: Through August, actual expenditures totaled $12.1 million, or 18% of the budget, which is above par. These expenditures reflect a 17% increase from expenditures through the same period last fiscal year. This is primarily because the timing of the booking of the internal service allocation charges, which were not yet reflected in the August 2023 data. Overtime expenditures are tracking over budget at 104%. The primary driver of the high expenditures in this category is mutual aid deployment efforts. These costs are reimbursable, and a budget action will be brought forward for City Council approval to recognize the reimbursement and adjust the Department overtime budget at a later date.
Excluding the mutual aid-related costs, the departmental overtime is approximately 35.4% of the budget. While this overtime figure is still above par, it is important to note that overtime is used to backfill for vacant positions and the vacancy savings offset a portion of the overtime costs.
Library Department: Through August, actual expenditures totaled $2.0 million, or 16.7% of the budget, which is at par, and 28.7% higher than expenditure levels last fiscal year. The higher spending is a result of the reopening of libraries in addition to the timing of the booking of the internal service allocation charges, which were not yet reflected in the August 2023 data.
Parks and Recreation Department: Through August, actual expenditures totaled $3.9 million, or
16.1% of the budget, which is slightly below par, but higher than prior year actuals of $3.4 million.
Similar to other departments, internal service allocation charges were not yet reflected in the August 2023 data.
Police Department: Expenditures through August are tracking at expected levels at $14.7 million, or
15.9% of the budget; this is approximately 18.1% higher than prior year spending. Again, this is also a result of the timing of the internal service allocation charges, which were not yet reflected in the August 2023 data.
Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures totaled $1.7 million through August, which is lower than the prior year. This is primarily due to lower overtime spend. The single event at the Stadium during August was one pre-season NFL game.
10 City of Santa Clara
Financial Status Report as of August 31, 2024
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of August 31, 2024. The amended budget reflects carryover encumbrances from fiscal year 2023/24 and budget amendments approved by the City Council through August 2024.
Revenues totaled approximately $4.7 million, while expenditures totaled approximately $3.7 million through the end of August. While revenue is tracking above par, expenditures are tracking slightly below par of 16.7%. In the Building Development Services Fee Fund and Fire Development Services Fee Fund, development-related fees are tracking higher than the prior year, In the City Affordable Housing Fund, higher interest earnings have been collected when compared to prior year levels. In the Housing and Urban Development Fund, there has been higher spend in grant administration costs.
Revenue in this fund reflects reimbursable grants, with the City anticipating revenue to be collected later in the fiscal year. In the Housing Successor Agency Fund, there have been lower contractual services costs.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 8/31/2024 Received 8/31/2023 Prior Year Change Building Development Services Fee
Fund
16,164,000$ 16,164,000$ 3,284,465$ 20.32% 2,460,157$ 824,308$ 33.51% City Affordable Housing Fund 1,168,177 1,168,177 130,925 11.21% 23,768 107,157 450.85% Fire Development Services Fee
Fund
3,277,500 3,277,500 1,011,355 30.86% 575,352 436,003 75.78% Housing and Urban Development 2,532,068 3,375,068 71,219 2.11% 378,305 (307,086) -81.17% Housing Authority Fund 252,496 252,496 9,980 3.95% 57,919 (47,939) -82.77% Housing Successor Fund 1,306,326 1,306,326 178,501 13.66% 152,797 25,704 16.82% TOTAL 24,700,567$ 25,543,567$ 4,686,445$ 18.35% 3,648,298$ 1,038,147$ 28.46% Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 8/31/2024 Use d 8/31/2023 Prior Year Change Building Development Services Fee
Fund
15,044,148$ 15,852,488$ 2,643,001$ 16.67% 2,303,565$ 339,436$ 14.74% City Affordable Housing Fund 1,593,647 1,983,423 125,449 6.32% 224,106 (98,657) -44.02% Fire Development Services Fee
Fund
3,387,922 3,387,922 580,151 17.12% 438,405 141,746 32.33% Housing and Urban Development 2,532,068 4,071,407 263,154 6.46% 362,783 (99,629) -27.46% Housing Authority Fund 468,931 511,389 33,244 6.50% 28,906 4,338 15.01% Housing Successor Fund 902,579 1,012,590 46,654 4.61% 220,176 (173,522) -78.81% TOTAL 23,929,295$ 26,819,219$ 3,691,653$ 13.76% 3,577,941$ 113,712$ 3.18%
PRIOR YEAR EXPENDITURE COMPARISON
CITY OF SANTA CLARA
SPECIAL REVENUE FUNDS
REVENUE AND EXPENDITURES - OVERVIEW AND COMPARISON BY FUND REVENUE - FISCAL YEAR 2024/25 PRIOR YEAR REVENUE COMPARISON EXPENDITURES - FISCAL YEAR 2024/25
11 City of Santa Clara
Financial Status Report as of August 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 August 2024. As of August 31, 2024, the capital fund revenue totaled $0.7 million.
REVENUE - FISCAL YEAR 2024/25
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 8/31/2024 Use d Parks & Recreation -$ 3,349,489$ 3,349,489$ 287,679$ 8.59% Related Santa Clara Developer 795,344 - 795,344 - 0.00% Storm Drain 1,454,000 3,000,000 4,454,000 244,872 5.50% Streets & Highways 5,951,458 22,490,903 28,442,361 99,585 0.35% Tasman East Specific Infrastructure
Improvement Fund
3,734,932 - 3,734,932 36,132 0.97% TOTAL 11,935,734$ 28,840,392$ 40,776,126$ 668,268$ 1.64%
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 August 2024. As of August 31, 2024, capital fund expenditures totaled $3.7 million, or 2.2% of the amended budget, well below par of 16.7%.
As part of the adoption of the FY 2024/25 and FY 2025/26 biennial capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2024. Necessary additional adjustments to the capital carryover amounts will be included as part of the Budgetary Year-End Report for FY 2023/24, anticipated to be brought forward for City Council approval in December 2024.
12 City of Santa Clara
Financial Status Report as of August 31, 2024
EXPENDITURES - FISCAL YEAR 2024/25
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 8/31/2024 Use d Fire 1,473,700$ 1,247,874 2,721,574$ 151,122$ 5.55% General Gov't - Other 2,390,820 9,127,697 11,518,517 255,558 2.22% Library 471,848 248,407 720,255 6,980 0.97% Parks & Recreation 7,654,966 25,525,570 33,180,536 1,135,022 3.42% Public Buildings 1,792,207 5,442,248 7,234,455 256,361 3.54% Related Santa Clara Developer 795,344 393,992 1,189,336 39,134 3.29% Storm Drain 2,161,450 7,135,999 9,297,449 289,843 3.12% Streets & Highways 21,295,073 77,468,474 98,763,547 1,536,932 1.56% Tasman East Specific Infrastructure
Improvement Fund
1,432,193 1,433,994 2,866,187 3,141 0.11% TOTAL 39,467,601$ 128,024,255$ 167,491,856$ 3,674,093$ 2.19%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
13 City of Santa Clara
Financial Status Report as of August 31, 2024
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of August 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 8/31/2024 Received 8/31/2023 Prior Year Change Cemetery Fund 750,000$ 750,000$ 87,644$ 11.69% 77,494$ 10,150$ 13.10% Electric Utility Fund 893,397,959 893,397,959 83,438,035 9.34% 72,784,575 10,653,460 14.64% Sewer Utility Fund 46,989,803 46,989,803 5,892,801 12.54% 4,974,289 918,512 18.47% Solid Waste Utility Fund 41,561,372 41,561,372 4,722,647 11.36% 4,503,065 219,582 4.88% Water Recycling Fund 8,507,338 8,507,338 1,487,367 17.48% 1,316,091 171,276 13.01% Water Utility Fund 64,096,935 64,096,935 9,200,104 14.35% 7,581,337 1,618,767 21.35% TOTAL REVENUE 1,055,303,407$ 1,055,303,407$ 104,828,598$ 9.93% 91,236,851$ 13,591,747$ 14.90% Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 8/31/2024 Use d 8/31/2023 Prior Year Change Cemetery Fund 1,628,800$ 1,628,800$ 181,850$ 11.16% 169,029$ 12,821$ 7.59% Electric Utility Fund 649,513,582 667,335,619 80,621,289 12.08% 85,516,893 (4,895,604) -5.72% Sewer Utility Fund 38,762,083 39,278,049 8,984,089 22.87% 7,792,537 1,191,552 15.29% Solid Waste Utility Fund 40,775,942 43,928,485 6,032,051 13.73% 5,186,542 845,509 16.30% Water Recycling Fund 9,307,289 9,332,389 258,109 2.77% 156,371 101,738 65.06% Water Utility Fund 57,614,177 58,830,207 6,607,417 11.23% 4,732,530 1,874,887 39.62% TOTAL - Operating
Appropriations
797,601,873$ 820,333,549$ 102,684,805$ 12.52% 103,553,902$ (869,097)$ -0.84% PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2024/25
CITY OF SANTA CLARA
ENTERPRISE OPERATING FUNDS
REVENUE AND EXPENSES - OVERVIEW AND COMPARISON BY FUND
REVENUE - FISCAL YEAR 2024/25 PRIOR YEAR REVENUE COMPARISON
Both revenues and expenditures are tracking significantly higher than prior year levels. In the Water Utility Fund, there have been higher customer service charges collected, along with higher personnel, resource and maintenance costs charged. Sales have also come in higher in the Cemetery Fund.
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. The lower the revenue from customer service charges, the lower the expenditures in the resource and production category..
14 City of Santa Clara
Financial Status Report as of August 31, 2024
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actual revenue through August 31, 2024, totaled $5.2 million, consisting primarily of developer contributions and load development fees in the Electric Utility Fund and sewer fees in the Sewer Utility Fund. Enterprise capital fund expenses totaled $10.5 million, or 2.1% of the amended budget. Similar to the general government capital funds, capital funds were carried over from FY 2023/24 as part of the FY 2024/25 and FY 2025/26 budget adoption process for those projects that were not expected to be completed by June 30, 2024. Additional necessary adjustments to the capital carryover amounts based on actual year-end expenditures will be brought forward for City Council approval in December 2024, as part of the budgetary year-end report for FY 2023/24.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 8/31/2024 Use d Convention Center Capital
Fund
550,000$ -$ 550,000$ -$ - Electric Utility Fund 21,659,000 26,213,951 47,872,951 4,886,011 10.21% Sewer Utility Fund - - - 233,393 NA Solid Waste Utility Fund 258,000 - 258,000 2,258 0.88% Street Lighting (1) - - - 837 NA Water Recycling Fund - - - - NA Water Utility Fund - - - 30,684 NA TOTAL - Revenue 22,467,000$ 26,213,951$ 48,680,951$ 5,153,183$ 10.59% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 8/31/2024 Use d Cemetery Fund 4,689$ 17,835$ 22,524$ 781$ 3.47% Convention Center Capital
Fund
2,700,000 1,726,973 4,426,973 68,755 1.55% Electric Utility Fund 217,332,515 198,533,383 415,865,898 5,544,237 1.33% Sewer Utility Fund 20,325,410 28,269,938 48,595,348 3,137,962 6.46% Solid Waste Utility Fund 788,000 119,873 907,873 49,527 5.46% Street Lighting (1) 5,365,000 3,405,462 8,770,462 29,089 0.33% Water Recycling Fund 400,000 - 400,000 238 0.06% Water Utility Fund 5,795,000 6,127,745 11,922,745 1,638,822 13.75%
TOTAL - CIP
Appropriations
252,710,613$ 238,201,210$ 490,911,823$ 10,469,411$ 2.13%
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
SUMMARY OF EXPENDITURES
EXPENDITURES - FISCAL YEAR 2024/25
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
REVENUE - FISCAL YEAR 2024/25
(1) Street Lighting fund is part of Electric Capital Improvement Funds
15 City of Santa Clara
Financial Status Report as of August 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 2024/25, the City Council approved an exception to the policy to allow the Reserve to drop 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 ensures sufficient operating cash is available to cover day-to-day expenses, address unforeseen cost increases or revenue shortfalls, and ensure debt service coverage. • The Replacement and Improvement Reserve in the Water and Sewer Utility Funds is for future capital improvement.
The table below summarizes select reserve balances.
16 City of Santa Clara
Financial Status Report as of August 31, 2024
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 53,823,574$
Capital Projects Reserve 7,769,117
Land Sale Reserve 18,481,036
Technology Fee Reserve 2,488,729
Electric Rate Stabilization Fund Reserve 66,000,000$
Electric Operations and Maintenance Reserve 195,000,000 Replacement & Improvement 303,090$
TOTALS 82,562,456$ 261,000,000$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
August 31, 2024
Donations to the City of Santa Clara
Donations received by department during the month of August 2024 and for fiscal year 2024/25 are shown in the table below.
Department Aug-24
Fis cal Year
2024/25
Year To Date Designated Use
City Manager's Office 2 2 Help Your Neighbor Parks & Recreation 0 500 Case Management
Parks & Recreation 3 1,531 Roberta Jones Jr. Theatre
Parks & Recreation 3,400 4,075 Wade Brummal
TOTALS 3,405$ 6,108$