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MONTHLY FINANCIAL STATUS REPORT
July 2024
1 City of Santa Clara
Financial Status Report as of July 31, 2024
This report summarizes the City’s financial performance for the month ended July 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 July 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 July 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 $316.9 million to reflect carryover encumbrances from fiscal year 2023/24 and various budget amendments approved by the City Council through July 2024.
While it is very early in the fiscal year and limited data is available, General Fund revenues and expenditures are tracking within estimated levels.
5 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-August-2024/ 6 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of July 31, 2024
General Fund Revenues
As of July 31, 2024, $6.4 million of General Fund revenue (excluding transfers) was received. This figure excludes the negative amounts reflected in the table below, which represent accruals of revenue to the previous year. 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. Transfers and use of reserves of $21.4 million have occurred as budgeted.
Adopted Budget
Amended
Budget
Actual Through
7/31/2024
Percentage
Received
Actual Through
7/31/2023
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 62,900,000$ 62,900,000$ (6,767,398)$ -10.76% -$ (6,767,398)$ N/A Property Tax 94,391,000 94,391,000 - 0.00% - - N/A Transient Occupancy Tax 22,850,000 22,850,000 - 0.00% - - N/A Other Taxes 6,950,000 6,950,000 67,849 0.98% 63,747 4,102 6.43% Total Taxes 187,091,000 187,091,000 (6,699,549) -3.58% 63,747 (6,763,296) -10609.59%
LICENSES & PERMITS
Business Licenses 6,000,000 6,000,000 351,918 5.87% 196,053 155,865 79.50% Fire Operation Permits 2,010,000 2,010,000 184,557 9.18% 50,922 133,635 262.43% Miscellaneous Permits 55,000 55,000 - 0.00% 1,649 (1,649) -100.00% Total Licenses & Permits 8,065,000 8,065,000 536,475 6.65% 248,624 287,851 115.78% FINES & PENALTIES 1,452,000 1,452,000 140,700 9.69% 227,605 (86,905) -38.18% INTERGOVERNMENTAL 970,000 970,000 - 0.00% - - N/A CHARGES FOR SERVICES 30,829,954 30,829,954 1,348,481 4.37% 804,152 544,329 67.69% SILICON VALLEY POWER TRANSFER 34,500,000 34,500,000 2,955,425 8.57% - 2,955,425 N/A
USE OF MONEY & PROPERTY
Interest 6,212,000 6,212,000 (1,521,988) -24.50% (1,292,639) (229,349) 17.74% Rent 13,028,187 13,028,187 1,290,161 9.90% 868,004 422,157 48.64% Total Use of Money & Property 19,240,187 19,240,187 (231,827) -1.20% (424,635) 192,808 -45.41% MISCELLANEOUS REVENUES 215,550 215,550 86,529 40.14% 14,979 71,550 477.67%
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 13,203,241 13,203,241 100.00% 8,012,113 5,191,128 64.79% 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 21,395,431 21,395,431 100.00% 14,971,840 6,423,591 42.90%
STADIUM OPERATION
Charges for Services 11,705,481 11,705,481 (223,091) -1.91% (27,241) (195,850) 718.95% Rent and Licensing 1,472,000 1,472,000 - 0.00% - - N/A Total Stadium Operation 13,177,481 13,177,481 (223,091) -1.69% (27,241) (195,850) 718.95% TOTAL GENERAL FUND 310,698,189$ 316,936,603$ 19,308,574$ 6.09% 15,879,070$ 3,429,504$ 21.60% (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 July 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 July 31, 2024, no sales tax has been recorded; the negative $6.8 million reflects an accrual to the prior year. Given the timing of payments, the sales tax payments received in July accounted for activity in the prior fiscal year and those funds were accrued to last year.
Property Tax: No property tax receipts were received in July 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%. No TOT has been recorded through July 31, 2024. The amounts received in July are attributed to the prior fiscal year and those funds were accrued to that year.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $67,849 through July, which is on par with last fiscal year’s collection levels. Receipts through July reflect franchise tax collections. No documentary transfer tax revenue is reflected through July as the receipts received in July were accrued to the prior fiscal year.
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 below par with receipts totaling $0.5 million, or 6.7% of the $8.1 million budget. This collection level, however, is above the prior year collection level of $0.25 million.
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue collected in this category through July 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 July 31, 2024, no revenue has been collected in this category.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through July, collections totaled approximately $1.3 million or 4.4% of the budget. This reflects a 67.7% increase compared to last year’s collections, primarily due to higher receipts from engineering fees and 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 July 31, 2024
Use of Money & Property: Includes realized investment income and rental income. Collections in the rent category are higher than prior year levels, specifically for right of way. 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 July 31, 2024, collections are slightly higher than prior year collections at $86,529.
Stadium Operation: Through July 2024, the current negative amount under the charges for services category reflects an accrual amount for charges for services.
7 City of Santa Clara
Financial Status Report as of July 31, 2024
General Fund Expenditures
As of July 31, 2024, $42.4 million or 13.4% of the General Fund operating budget had been expended, which is higher than prior year expenditure levels. Excluding transfers, expenditures totaled $24.4 million, or 8.2% of the budget, which is close to the par of 8.3% of the budget. Transfers of $18.0 million have occurred as budgeted. Overall, expenditures in the General Fund are within budgeted levels through July.
Adopted Budget
Amended
Budget
Actual Through
7/31/2024
Percentage
Use d
Actual Through
7/31/2023
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 17,622,136$ 17,841,022$ 1,260,739$ 7.07% 351,730$ 909,009$ 258.44% City Council 1,196,923 1,196,923 102,491 8.56% 76,336 26,155 34.26% City Clerk 2,102,267 2,104,267 128,748 6.12% 104,369 24,379 23.36% City Manager 8,222,051 9,030,316 442,827 4.90% 211,381 231,446 109.49% City Attorney 3,357,661 3,440,037 241,507 7.02% 194,826 46,681 23.96% Human Resources 4,845,256 5,019,594 305,351 6.08% 230,562 74,789 32.44% Finance 21,008,682 21,937,208 1,894,471 8.64% 1,164,274 730,197 62.72% Total General Government 58,354,976 60,569,367 4,376,134 7.22% 2,333,478 2,042,656 87.54% PUBLIC WORKS 26,347,463 27,932,690 2,228,262 7.98% 1,374,202 854,060 62.15% COMMUNITY DEVELOPMENT 5,575,313 5,636,381 414,314 7.35% 389,190 25,124 6.46% PARKS AND RECREATION 23,172,047 23,931,989 1,750,119 7.31% 1,380,953 369,166 26.73%
PUBLIC SAFETY
Fire 66,292,191 66,954,133 5,945,790 8.88% 5,136,442 809,348 15.76% Police 92,074,298 92,481,021 7,328,600 7.92% 6,273,095 1,055,505 16.83% Total Public Safety 158,366,489 159,435,154 13,274,390 8.33% 11,409,537 1,864,853 16.34% LIBRARY 11,732,505 12,212,058 1,089,078 8.92% 842,646 246,432 29.25% DEPARTMENTAL TOTAL 283,548,793 289,717,639 23,132,297 7.98% 17,730,006 5,402,291 30.47%
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 1,247,383 13.59% 1,218,561 28,822 2.37% TOTAL GENERAL FUND 310,698,189$ 316,936,603$ 42,417,826$ 13.38% 30,593,728$ 11,824,098$ 38.65% 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 July 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 July, expenditures totaled $1.3 million, or 7.1% of the budget.
These expenditures are below the par level of 8.3%, but higher than prior year levels. This is primarily attributable due to higher charges in the insurance and salaries and benefits categories when compared to last fiscal year. Additionally, the booking of internal service allocation charges was not yet reflected in the July 2023 data; however, are reflected in the July 2024 data.
City Attorney: Actual expenditures through July totaled approximately $0.2 million, which is 7% of the budget, which is below par. Spending is higher than the total expenditures through the same time last fiscal year by 24% due to higher salaries and benefits charges as well as the timing of the booking of the internal service allocation charges, which were not yet reflected in the July 2023 data.
City Clerk: Through July, actual expenditures were tracking below budget at $0.1 million or approximately 6.1% of the budget. This expenditure level reflects a 23.4% increase compared to last fiscal year due to the timing of the booking of the internal service allocation charges, which were not yet reflected in the July 2023 data and higher software subscription costs.
City Council: Through July, expenditures were at 8.6% of budget, which is close to par. Compared to the same period through last fiscal year, this reflects a significant increase in expenditures, resulting from higher salaries and benefits spending and the timing of the booking of the internal service allocation charges, which were not yet reflected in the July 2023 data.
City Manager: The actual expenditures through July totaled $0.4 million, or 4.9% of the budget, which is below par for this time of the year. Expenditures are approximately 110% higher compared with the spending level through the same period last fiscal year. This is due to higher spend in the salaries and benefits categories and advertising. Similar to other departments the higher spend is also due to the timing of the booking of the internal service allocation charges, which were not yet reflected in the July 2023 data.
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 July, departmental expenditures for the Planning and Housing and Community Services divisions totaled $0.4 million, or 7.4% of the budget, which is below par of 8.3%. This expenditure level is 6.5% above the prior year as a result of the timing of the booking of the internal service allocation charges, which were not yet reflected in the July 2023 data.
Finance Department: Through July, the Department’s expenditures totaled $1.9 million, or 8.6% of the budget, which is close to par. This expenditure level was approximately 62.7% higher compared to the same period last year. Similar to the other departmental tracking, this is a result of the timing of the
9 City of Santa Clara
Financial Status Report as of July 31, 2024
internal service allocation charges, which were not yet reflected in the July 2023 data. In addition, salaries and benefits and contractual services costs are tracking above the prior year.
Fire Department: Through July, actual expenditures totaled $5.9 million, or 8.9% of the budget, which is slightly above par. These expenditures reflect a 15.8 % 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 July 2023 data. Overtime expenditures are tracking at 57% of the budget, which is well above par for this time of year. 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 17.8% 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 July, actual expenditures totaled $1.1 million, or 8.9% of the budget, which is slightly above par, and 29.3% 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 July 2023 data.
Parks and Recreation Department: Through July, actual expenditures totaled $1.8 million, or 7.3% of the budget, which is below par, but higher with prior year actuals of $1.4 million. Similar to other departments, internal service allocation charges were not yet reflected in the July 2023 data.
Police Department: Expenditures through July are tracking at expected levels at $7.3 million, or 7.9% of the budget; this is approximately 16.8% higher 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 July 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 $1.2 million through July, which is consistent with prior year levels. Events at the Stadium during July included three soccer matches as well as a Rolling Stones concert.
10 City of Santa Clara
Financial Status Report as of July 31, 2024
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of July 31, 2024. The amended budget reflects carryover encumbrances from fiscal year 2023/24 and budget amendments approved by the City Council through July 2024.
Revenues totaled approximately $3.1 million, while expenditures totaled approximately $1.9 million through the end of July. While revenue is tracking above par, expenditures are tracking slightly below par of 8.3%. In the City Affordable Housing Fund, higher interest earnings have been collected when compared to prior year levels, while higher plan check and sign fees have been collected in the Building Development Services Fund. In the Housing and Urban Development Fund, there has been higher spend in grant administration costs, while 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 7/31/2024 Received 7/31/2023 Prior Year Change Building Development Services Fee
Fund
16,164,000$ 16,164,000$ 2,162,889$ 13.38% 1,358,998$ 803,891$ 59.15% City Affordable Housing Fund 1,168,177 1,168,177 60,108 5.15% 5,932 54,176 913.28% Fire Development Services Fee
Fund
3,277,500 3,277,500 682,913 20.84% 226,813 456,100 201.09% Housing and Urban Development 2,532,068 3,375,068 74,732 2.21% 130,888 (56,156) -42.90% Housing Authority Fund 252,496 252,496 5,200 2.06% 55,144 (49,944) -90.57% Housing Successor Fund 1,306,326 1,306,326 153,505 11.75% 138,437 15,068 10.88% TOTAL 24,700,567$ 25,543,567$ 3,139,347$ 12.29% 1,916,212$ 1,223,135$ 63.83% Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 7/31/2024 Use d 7/31/2023 Prior Year Change Building Development Services Fee
Fund
15,044,148$ 15,852,488$ 1,348,686$ 8.51% 1,117,023$ 231,663$ 20.74% City Affordable Housing Fund 1,593,647 1,983,423 81,013 4.08% 57,643 23,370 40.54% Fire Development Services Fee
Fund
3,387,922 3,387,922 294,764 8.70% 209,317 85,447 40.82% Housing and Urban Development 2,532,068 4,071,407 174,114 4.28% 63,281 110,833 175.14% Housing Authority Fund 468,931 511,389 13,762 2.69% 14,132 (370) -2.62% Housing Successor Fund 902,579 1,012,590 27,958 2.76% 170,382 (142,424) -83.59% TOTAL 23,929,295$ 26,819,219$ 1,940,297$ 7.23% 1,631,778$ 308,519$ 18.91%
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 July 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 July 2024.
As of July 31, 2024, the capital fund revenue totaled $0.3 million.
REVENUE - FISCAL YEAR 2024/25
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 7/31/2024 Use d Parks & Recreation -$ 3,349,489$ 3,349,489$ 151,048$ 4.51% Related Santa Clara Developer 795,344 - 795,344 - 0.00% Storm Drain 1,454,000 3,000,000 4,454,000 120,665 2.71% Streets & Highways 5,951,458 22,490,903 28,442,361 12,011 0.04% Tasman East Specific Infrastructure
Improvement Fund
3,734,932 - 3,734,932 19,054 0.51% TOTAL 11,935,734$ 28,840,392$ 40,776,126$ 302,778$ 0.74%
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 July 2024. As of July 31, 2024, capital fund expenditures totaled $1.7 million, or 1.0% of the amended budget, well below par of 8.3%.
As part of the adoption of the FY 2024/25 and FY 2025/26 biennial capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2024. Necessary additional adjustments to the capital carryover amounts will be included as part of the Budgetary Year-End Report for FY 2023/24, anticipated to be brought forward for City Council approval in December 2024.
12 City of Santa Clara
Financial Status Report as of July 31, 2024
EXPENDITURES - FISCAL YEAR 2024/25
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 7/31/2024 Use d Fire 1,473,700$ 1,247,874 2,721,574$ 79,171$ 2.91% General Gov't - Other 2,390,820 9,127,697 11,518,517 103,212 0.90% Library 471,848 248,407 720,255 1,620 0.22% Parks & Recreation 7,654,966 25,525,570 33,180,536 472,165 1.42% Public Buildings 1,792,207 5,442,248 7,234,455 152,747 2.11% Related Santa Clara Developer 795,344 393,992 1,189,336 8,456 0.71% Storm Drain 2,161,450 7,135,999 9,297,449 218,496 2.35% Streets & Highways 21,295,073 77,468,474 98,763,547 624,638 0.63% Tasman East Specific Infrastructure
Improvement Fund
1,432,193 1,433,994 2,866,187 1,611 0.06% TOTAL 39,467,601$ 128,024,255$ 167,491,856$ 1,662,116$ 0.99%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
13 City of Santa Clara
Financial Status Report as of July 31, 2024
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of July 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 7/31/2024 received 7/31/2023 Prior Year Change Cemetery Fund 750,000$ 750,000$ 74,314$ 9.91% 40,607$ 33,707$ 83.01% Electric Utility Fund 893,397,959 893,397,959 12,229,737 1.37% 10,939,137 1,290,600 11.80% Sewer Utility Fund 46,989,803 46,989,803 954,733 2.03% 863,094 91,639 10.62% Solid Waste Utility Fund 41,561,372 41,561,372 1,380,466 3.32% 1,317,948 62,518 4.74% Water Recycling Fund 8,507,338 8,507,338 103,194 1.21% 64,417 38,777 60.20% Water Utility Fund 64,096,935 64,096,935 2,001,386 3.12% 1,763,352 238,034 13.50% TOTAL REVENUE 1,055,303,407$ 1,055,303,407$ 16,743,830$ 1.59% 14,988,555$ 1,755,275$ 11.71% Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 7/31/2024 Use d 7/31/2023 Prior Year Change Cemetery Fund 1,628,800$ 1,628,800$ 73,846$ 4.53% 76,253$ (2,407)$ -3.16% Electric Utility Fund 649,513,582 667,335,619 38,207,449 5.73% 36,774,193 1,433,256 3.90% Sewer Utility Fund 38,762,083 39,278,049 8,159,002 20.77% 1,507,187 6,651,815 441.34% Solid Waste Utility Fund 40,775,942 43,928,485 3,335,156 7.59% 2,520,987 814,169 32.30% Water Recycling Fund 9,307,289 9,332,389 131,432 1.41% 91,733 39,699 43.28% Water Utility Fund 57,614,177 58,830,207 1,211,537 2.06% 0 1,211,537 NA TOTAL - Operating
Appropriations
797,601,873$ 820,333,549$ 51,118,422$ 6.23% 40,970,353$ 10,148,069$ 24.77% 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 higher than prior year levels. In the Water Recycling Fund, there have been higher customer service charges collected and higher personnel 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. In the Sewer Utility Fund, the high expenditure level is attributable to the quarterly billing for maintenance and operations costs associated with the Regional Wastewater Facility, which the City co-owns with the City of San Jose. When compared to last fiscal year, this quarterly expenditure was not recorded until August 2023.
14 City of Santa Clara
Financial Status Report as of July 31, 2024
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actual revenue through July 31, 2024, totaled $0.3 million, consisting primarily of developer contributions in the Electric Utility Fund and sewer fees in the Sewer Utility Fund. Enterprise capital fund expenses totaled $5.5 million, or 1.1% of the amended budget. Similar to the general government capital funds, capital funds were carried over from FY 2023/24 as part of the FY 2024/25 and FY 2025/26 budget adoption process for those projects that were not expected to be completed by June 30, 2024. Additional necessary adjustments to the capital carryover amounts based on actual year-end expenditures will be brought forward for City Council approval in December 2024, as part of the budgetary year-end report for FY 2023/24.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 7/31/2024 Use d Convention Center Capital
Fund
550,000$ -$ 550,000$ -$ - Electric Utility Fund 21,659,000 26,213,951 47,872,951 204,413 0.43% Sewer Utility Fund - - - 14,811 NA Solid Waste Utility Fund 258,000 - 258,000 2,258 0.88% Street Lighting (1) - - - - NA Water Recycling Fund - - - - NA Water Utility Fund - - - 30,684 NA TOTAL - Revenue 22,467,000$ 26,213,951$ 48,680,951$ 252,166$ 0.52% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 7/31/2024 Use d Cemetery Fund 4,689$ 17,835$ 22,524$ 390$ 1.73% Convention Center Capital
Fund
2,700,000 1,726,973 4,426,973 514 0.01% Electric Utility Fund 217,332,515 198,533,383 415,865,898 2,257,640 0.54% Sewer Utility Fund 20,325,410 28,269,938 48,595,348 2,991,476 6.16% Solid Waste Utility Fund 788,000 119,873 907,873 1,000 0.11% Street Lighting (1) 5,365,000 3,405,462 8,770,462 10,783 0.12% Water Recycling Fund 400,000 - 400,000 238 0.06% Water Utility Fund 5,795,000 6,127,745 11,922,745 269,771 2.26%
TOTAL - CIP
Appropriations
252,710,613$ 238,201,210$ 490,911,823$ 5,531,812$ 1.13%
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
SUMMARY OF EXPENDITURES
EXPENSES - 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 July 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 July 31, 2024
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 53,823,574$
Capital Projects Reserve 13,876,988
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 88,670,327$ 261,000,000$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
July 31, 2024
Donations to the City of Santa Clara
Donations received by department during the month of July 2024 and for fiscal year 2024/25 are shown in the table below.
Department Jul-24
Fis cal Year
2024/25
Year To Date Designated Use
Parks & Recreation 500 500 Case Management
Parks & Recreation 1,528 1,528 Roberta Jones Jr. Theatre Parks & Recreation 675 675 Wade Brummal
TOTALS 2,703$ 2,703$