Agenda packet — City Council and Authorities Concurrent, December 3, 2024 (part 1 of 7)

City of Santa Clara
Joint Meeting Agenda of the
City Council and Authorities Concurrent &
Santa Clara Stadium Authority Board
Hybrid Meeting
City Hall Council Chambers/Virtual
1500 Warburton Avenue
Santa Clara, CA 95050
Tuesday, December 3, 2024 7:00 PM
The City of Santa Clara is conducting City Council meetings in a hybrid manner (in-person and continues to have methods for the public to participate remotely). • Via Zoom:
o https://santaclaraca.zoom.us/j/99706759306
Meeting ID: 997-0675-9306
o Phone 1(669) 900-6833
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Agendas, Staff Reports and some associated documents for City Council items may be viewed on the Internet at https://santaclara.legistar.com/Calendar.aspx All public records relating to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at the Office of the City Clerk at Santa Clara City Hall, 1500 Warburton Avenue, Santa Clara, CA 95050 at the same time that the public records are distributed or made available to the legislative body. Any draft contracts, ordinances and resolutions posted on the Internet site or distributed in advance of the Council meeting may not be the final documents approved by the City Council. For the final document, you may contact the Office of the City Clerk at (408) 615-2220 or [email protected].

City of Santa Clara Page 1 of 19 Printed on 11/27/2024
Meeting Agenda December 3, 2024
Call to Order in the Council Chambers
Pledge of Allegiance and Statement of Values
Roll Call

CONTINUANCES/EXCEPTIONS/RECONSIDERATIONS

SPECIAL ORDER OF BUSINESS

1. Recognition of High School Students Andrew Lam, Aayna Dash, Asmi Sawant, Aanya Mishra, Mithil Patil, and Anav Bordia for Community Service Projects
24-1167

CONSENT CALENDAR
[Items listed on the CONSENT CALENDAR are considered routine and will be adopted by one motion. There will be no separate discussion of the items on the CONSENT CALENDAR unless discussion is requested by a member of the Council, staff, or public. If so requested, that item will be removed from the CONSENT CALENDAR and considered under CONSENT ITEMS PULLED FOR DISCUSSION.]

2.A Action on the October 29, 2024 Special City Council Meeting Minutes, November 12, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes, and
November 19, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes.
24-1207
Approve the meeting minutes of:

October 29, 2024 Special City Council Meeting
Minutes,
November 12, 2024 Joint Council and Authorities
Concurrent & Stadium Authority Meeting Minutes,
November 19, 2024 Joint Council and Authorities
Concurrent & Stadium Authority Meeting Minutes.

Recommendation:

2.B 24-22 Board, Commissions and Committee Minutes
Note and file the Minutes of:

Youth Commission - October 8, 2024
Audit Committee - September 17, 2024
Recommendation:

City of Santa Clara Page 2 of 19 Printed on 11/27/2024
7:00 PM JOINT CITY COUNCIL/STADIUM AUTHORITY BOARD MEETING Joint Council and Authorities Concurrent &
Stadium Authority Board Meeting
Meeting Agenda December 3, 2024

2.C Action on Monthly Financial Status and Investment Reports for September 2024 and Approve the Related Budget Amendments 24-1075

1. Note and file the Monthly Financial Status Reports
and Monthly Investment Reports for September
2024 as presented; and

2. Approve the FY 2024/25 Budget Amendments in
the following funds (as detailed in the Fiscal
Section of the staff report and Attachment 3 to the
staff report):
a. In the General Fund, with a net impact of
$148,785;
b. In the Fire Operating Grant Trust Fund,
with a net impact of $31,125;
c. In the Public Donations Fund, with a net
impact of $3,132; and
d. In the Storm Drain Capital Fund, with a
net impact of $0.

Recommendation:

2.D Action on the City of Santa Clara Audited Annual
Comprehensive Financial Report and Audited Silicon Valley Power Financial Statements for Fiscal Year Ended June 30, 2024, as Recommended by the Audit Committee
24-832
Note and file, as recommended by the Audit
Committee:

1. The audited City of Santa Clara Annual
Comprehensive Financial Report (ACFR) for fiscal
year ended June 30, 2024; and

2. The audited City of Santa Clara Electric Utility
Enterprise Fund (Silicon Valley Power) Financial
Statements for fiscal year ended June 30, 2024.

Recommendation:

2.E Action to Approve an Accounts Receivable Collections and Write-Off Policy
24-1125
Approve the attached Accounts Receivable
Collections and Write-Off Policy.

Recommendation:

City of Santa Clara Page 3 of 19 Printed on 11/27/2024
Joint Council and Authorities Concurrent &
Stadium Authority Board Meeting
Meeting Agenda December 3, 2024

2.F Action on the Award of Purchase Orders with an Aggregate Total of $5,665,000 for Vehicles and Equipment for the Public Works, Fire, Police, Silicon Valley Power, Water & Sewer Utilities, and Parks & Recreation Departments, Funded by Amounts Previously Approved in the City’s Operating Budget for Fiscal Year 2024/25
24-1410

1. Approve and authorize the City Manager or
designee to execute purchase orders for vehicles
and equipment for the Public Works, Fire, Police,
Silicon Valley Power, Water & Sewer Utilities,
and Parks & Recreation Departments, through
Sourcewell and the California Department of
General Services cooperative purchasing
agreements, with Municipal Maintenance
Equipment, Inc., Downtown Ford, Golden State
Fire Apparatus, Altec Industries, Inc., and
Peterson Tractor, on the terms and in the
amounts presented, in a total aggregate amount
not-to-exceed $5,665,000 (inclusive of taxes,
fees, and a 5% contingency), in final forms
approved by the City Attorney.

Recommendation:

2.G Action on Purchase Order with Insight Public Sector for FLOCK Automated License Plate Reader Systems
24-661
Authorize the City Manager or designee to execute
purchase orders with Insight Public Sector, through the Omnia Partners cooperative purchasing agreement,
for the lease and/or purchase of FLOCK ALPR
cameras, software enhancements, subscription
services, and professional services, with a total
aggregate amount not-to-exceed $735,900 to cover
all cameras and services through November 23, 2028,
subject to the appropriation of funds and in a final form approved by the City Attorney.

Recommendation:

City of Santa Clara Page 4 of 19 Printed on 11/27/2024
Joint Council and Authorities Concurrent &
Stadium Authority Board Meeting
Meeting Agenda December 3, 2024

2.H Action on an Agreement with Kimley-Horn and Associates, Inc. for Design Professional Services for the Uncontrolled
Crosswalks Improvements - Phase II Project
24-1596

1. Approve and authorize the City Manager to
execute an agreement with Kimley-Horn and
Associates, Inc. for design professional services
for the Uncontrolled Crosswalks Improvements -
Phase II Project with maximum compensation
not-to-exceed $368,920, in a final form approved
by the City Attorney; and

2. Authorize the City Manager to negotiate and
execute amendments to the agreement to make
modifications as needed, including time
extensions, subject to the compensation limit and
appropriation of funds, in final forms approved by
the City Attorney.

Recommendation:

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Joint Council and Authorities Concurrent &
Stadium Authority Board Meeting
Meeting Agenda December 3, 2024

2.I Action on an Agreement with InfoSend, Inc. for Bill Print and Mail Services
24-1070

1. Authorize the City Manager or designee to
negotiate and execute an agreement with
InfoSend, Inc. (Agreement) for print and mail
services, for an initial one-year term starting on
January 1, 2025 and ending on December 31,
2025, with a maximum compensation of $200,000,
to be funded by the General Fund, subject to the
review and approval as to form by the City
Attorney; and

2. Authorize the City Manager or designee to take
any actions as necessary to implement and
administer the Agreement and to negotiate and
execute amendments to the Agreement to (a) add
or delete services consistent with the scope of
services, (b) adjust rates consistent with market
standards, (c) exercise up to six one-year
extension options, (d) make other no cost
amendments, and (e) increase the maximum
compensation by up to $1,754,081 for a total
maximum compensation of $1,954,081 over the
seven-year period, ending on December 31, 2031,
subject to the appropriation of funds and review
and approval as to form by the City Attorney.

3. Authorize the payment of pass-through postage
costs to InfoSend, Inc., which will be charged to the
City at the lowest possible United States Postal
Service (USPS) rates, estimated at approximately
$300,000 per year, subject to adjustments based
on USPS rate increases and the actual volume of
mail sent.

Recommendation:

City of Santa Clara Page 6 of 19 Printed on 11/27/2024
Joint Council and Authorities Concurrent &
Stadium Authority Board Meeting
Meeting Agenda December 3, 2024

2.J Action on an Equipment Rental Agreement and Related Documents with Global Rental Co., Inc. for Equipment Rental for Silicon Valley Power
24-1050

1. Authorize the City Manager or designee to execute
an Equipment Rental Agreement and related
documents with Global Rental Co., Inc. for Silicon
Valley Power under the Sourcewell cooperative
purchasing agreement, through June 11, 2028,
with a total maximum compensation of up to $2.5
million, subject to the appropriation of funds and
review and approval as to form by the City
Attorney; and

2. Authorize the City Manager or designee to take
any actions as necessary to implement and
administer the Agreement and to negotiate and
execute amendments to (1) rent additional
equipment and vehicles; and (2) purchase vehicle
and equipment rentals, subject to appropriation of
funds and review and approval as to form by the
City Attorney.

Recommendation:

City of Santa Clara Page 7 of 19 Printed on 11/27/2024
Joint Council and Authorities Concurrent &
Stadium Authority Board Meeting
Meeting Agenda December 3, 2024

2.K Action on a Purchase and Sale Agreement With
Dollinger-Lafayette Associates to Acquire the Improved Property Located at 2900-2930 Lafayette Street in Santa Clara for Use by Silicon Valley Power for a Purchase Price of $5.5 Million and Related Budget Amendment
24-1117

1. Authorize the City Manager to execute a Purchase
and Sale Agreement (Agreement) with
Dollinger-Lafayette Associates for 2900-2930
Lafayette Street in the amount of $5.5 Million for
use by Silicon Valley Power, in substantially the
form presented subject to the review and final
approval as to form by the City Attorney;

2. Authorize the City Manager or designee to take
any necessary actions to implement and
administer the Agreement, including, acceptance
of a grant deed on behalf of the City; and

3. Approve the FY 2024/25 budget amendment in the
Electric Utility Fund to increase the Electric
Department (Capital Outlay) appropriation and
decrease the Unrestricted Ending Fund Balance in
the amount of $5.5 million (five affirmative
Council votes required for the use of unused
balances).

Recommendation:

City of Santa Clara Page 8 of 19 Printed on 11/27/2024
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Stadium Authority Board Meeting
Meeting Agenda December 3, 2024

2.L Action on Award of Contract for the Lick Mill Blvd Pedestrian Beacon Upgrade and Monroe St - Los Padres Blvd Traffic
Signal Modification Project to Sposeto Engineering, Inc. and Related Budget Amendment
24-982

1. Determine that the proposed actions are exempt
from CEQA pursuant to Section 15301 (Existing
Facilities) of Title 14 of California Code of
Regulations;

2. Award the Public Works Contract for the Lick Mill
Blvd Pedestrian Beacon Upgrade and Monroe St -
Los Padres Blvd Traffic Signal Modification
Project to Sposeto Engineering, Inc., the lowest
responsive and responsible bidder, in the amount
of $644,666 and authorize the City Manager to
execute any and all documents associated with,
and necessary for the award, completion, and
acceptance of this Project, in final forms approved
by the City Attorney;

3. Authorize the City Manager to execute change
orders up to approximately 15 percent of the
original contract price, or $96,700 for a total
project budget not-to-exceed amount of $741,366,
in final forms approved by the City Attorney; and

4. Approve the following FY 2024/25 budget
amendment in the Streets and Highways Capital
Fund to reallocate funding from the Lick Mill
Pedestrian Beacons Upgrade Project in the
amount of $500,000 to the Monroe - Los Padres
Traffic Signal Modification Project (majority
affirmative Council votes required).

Recommendation:

2.M Action to Approve a Resolution Establishing a Citywide Payment Acceptance and Processing Fees Policy to Charge Processing Fees and Set Transaction Limits
24-678
Approve a Resolution Establishing a Payment
Acceptance and Processing Fees Policy.

Recommendation:

City of Santa Clara Page 9 of 19 Printed on 11/27/2024
Joint Council and Authorities Concurrent &
Stadium Authority Board Meeting
Meeting Agenda December 3, 2024

2.N Action on a Resolution to Set the Regular Meeting Schedules and Dates for the Bicycle and Pedestrian Advisory Committee for Calendar Year 2025
24-885
Adopt a resolution setting the regular meeting
schedules and dates for the Bicycle and Pedestrian
Advisory Committee for Calendar Year 2025.

Recommendation:

2.O Note and File the List of Designated City Employees who are Subject to Post-Employment Restrictions Pursuant to City Code Chapter 2.145
24-1032
Note and File the List of Designated City Employees
who shall be subject to post-employment restrictions
pursuant to Santa Clara City Code, Chapter 2.145 for
the period of January 1, 2025 - December 31, 2025.

Recommendation:

City of Santa Clara Page 10 of 19 Printed on 11/27/2024 Joint Council and Authorities Concurrent &
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Meeting Agenda December 3, 2024

2.P Action on Delegation of Authority to the City Manager to Negotiate and Execute Amendments to Agreements for Design Professional Services for Silicon Valley Power’s System Capacity Expansion Planning Including Plan Implementation and General Consulting Services
24-1123

1. Subject to the appropriation of funds and review
and approval as to form by the City Attorney,
authorize the City Manager to negotiate and
execute amendments to the Agreements for
Design Professional Services (Master
Agreements) for Silicon Valley Power’s System
Expansion Plan for an additional aggregate
maximum compensation of $20 million for a new
aggregate maximum compensation of $100
million funded by the Electric Utility Capital Fund
and allocated as SVP may require with (a) 1898 &
Co., (b) TRC Solutions, Inc., (c) Electrical
Consultants, Inc., (d) AECOM Technical Services,
Inc., (e) Stantec Consulting Services Inc., (f)
Advisian Worley Group, (g) Leidos Engineering,
LLC, (h) Flynn Resource Consultants, Inc. and (i)
EN Engineering LLC.); and

2. Authorize the City Manager to take any actions as
necessary to implement and administer the Master
Agreements and to negotiate and execute
amendments to those agreements to (a) add or
delete services with their scope of services; (b)
adjust future rates; and (c) extend the terms of the
Master Agreements to complete projects initiated
during the authorized term, subject to budget
appropriations and approval as to form by the City
Attorney.

Recommendation:

2.Q Action on Resolutions Approving the Cultural Commission, Youth Commission, and Parks & Recreation Commission 2025 Calendar of Meetings
24-1127
Adopt Resolutions setting the Parks & Recreation
Commission, Cultural Commission, and Youth
Commission regular meeting dates for the 2025
calendar year.

Recommendation:

City of Santa Clara Page 11 of 19 Printed on 11/27/2024 Joint Council and Authorities Concurrent &
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Meeting Agenda December 3, 2024

2.R Authorize the Mayor to Sign the Final Version of the Responsible AI Pledge at the upcoming GovAI Coalition Summit 24-1193
Authorize the Mayor to sign the final version of the
Responsible Artificial Intelligence (AI) Pledge
proposed by the GovAI Coalition Summit being held
December 4 - 6.

Recommendation:

2.S Informational Report Regarding Bi-Annual Project Status Report of the GIS Services Program
24-1035
Note and file the Bi-annual Status Report on the GIS
Service Program.

Recommendation:

2.T Action to Authorize the Use of City Water Forces to Install a Backflow Prevention Device at 471 Perry Court.
24-1119
Approve the use of City Water forces for water utility
upgrades at 471 Perry Court based on findings
presented that such work can be performed better and
more economically by City forces.

Recommendation:

2.U Action to Waive Second Reading and Adopt Ordinance No. 2074 to Approve a Development Agreement Between the City of Santa Clara and Kylli, Inc. for the Property Located at 4995 Patrick Henry Drive and 3005 Democracy Way, Santa Clara 24-1206
Waive Second Reading and Adopt Ordinance No.
2074 approving a Development Agreement between
the City of Santa Clara and Kylli, Inc. for the property located at 4995 Patrick Henry Drive and 3005
Democracy Way, Santa Clara.

Recommendation:

SANTA CLARA STADIUM AUTHORITY BOARD CONSENT CALENDAR
City of Santa Clara Page 12 of 19 Printed on 11/27/2024 Joint Council and Authorities Concurrent &
Stadium Authority Board Meeting
Meeting Agenda December 3, 2024

3. Action on the Stadium Manager’s Request for Approval of an Agreement with Jones Sign Co. Inc. to Replace the Naming Rights Signage at Levi’s Stadium (Levi's Naming Rights
Signage Refurbishment/Replacement CapEx Project) and
Approve Related Budget Amendment
24-1101

1. Approve a budget amendment for the Levi's
Naming Rights Signage
Refurbishment/Replacement line item in the
Stadium Authority FY 2024/25 CapEx Budget to
increase the budget by $1,026,082 from the
Capital Budget Ending Fund Balance, for a total
budget amount of $3,861,082;

2. Approve the Stadium Manager’s request to award
a one-time agreement to Jones Sign Co. Inc. in the
amount of $3,978,555.87 to replace the four (4)
Naming Rights signs at Levi’s Stadium (Levi's
Naming Rights Signage
Refurbishment/Replacement CapEx Project),
pursuant to the First Amendment to the Naming
Rights Agreement with Levi Strauss & Co. and
Levi’s Stadium Naming Rights Extension and
Enhanced Signage Project Implementation
Agreement with Forty Niners SC Stadium
Company LLC;

3. Authorize the Stadium Manager to execute any
and all documents associated with, and necessary
for the award, completion, and acceptance of the
project, in a form substantially similar to
Attachment 5; and

4. Authorize the Stadium Manager to execute change
orders for the agreement up to $397,855.59, for a
total not to exceed amount of $4,376,411.46.

5. Authorize the Stadium Manager to select an
additional extended warranty period and execute
up to a full ten-year stand-alone parts warranty for
signage materials at the additional cost of
$229,840.87.

Recommendation:

City of Santa Clara Page 13 of 19 Printed on 11/27/2024 Joint Council and Authorities Concurrent &
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Meeting Agenda December 3, 2024

PUBLIC PRESENTATIONS
[This item is reserved for persons to address the Council or authorities on any matter not on the agenda that is within the subject matter jurisdiction of the City or Authorities. The law does not permit action on, or extended discussion of, any item not on the agenda except under special circumstances. The governing body, or staff, may briefly respond to statements made or questions posed, and appropriate body may request staff to report back at a subsequent meeting. Although not required, please submit to the City Clerk your name and subject matter on the speaker card available in the Council Chambers.]

CONSENT ITEMS PULLED FOR DISCUSSION

PUBLIC HEARING/GENERAL BUSINESS

4. Public Hearing: Action on an Appeal of the Planning
Commission’s Denial of a Variance and Conditional Use Permit (PLN22-00282) for the Construction of a New Four-Story, 111,978 Square Foot Data Center at 1231 Comstock Street 24-1198
Recommendation: Project Approval
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1. Adopt a Resolution adopting the Initial Study,
Mitigated Negative Declaration, and Mitigation
Monitoring and Reporting Program.

2. Sustain the Appeal and Adopt a Resolution
approving a Conditional Use Permit for the
demolition of the existing building and the
construction of a new four-story, 111,978 square
foot data center at 1231 Comstock, subject to
findings and conditions of approval.

3. Sustain the Appeal and Adopt a Resolution
approving the Variance to height, parking, and
front setback for the new four-story, 111,978
square foot data center at 1231 Comstock, subject
to findings and conditions of approval.

Meeting Agenda December 3, 2024

5. Action on FY 2023/24 Budget Year-End Report and Approve the Related Budget Amendments
24-831

1. Note and file the FY 2023/24 Budget Year-End
Report.

2. Establish a Certified Unified Program Agency
(CUPA) Fund to account for CUPA-related
activities to be managed by the Fire Department.

3. Approve the FY 2023/24 Budget Amendments to
address necessary budget ratifications totaling
$1,590,060 in 10 funds as set forth in Attachment
1 of this report (five affirmative Council votes
required for revenue actions and the use of
unused balances as noted for each item in
Attachment 1).

4. Approve the FY 2024/25 Budget Amendments, as
set forth in Attachment 2. This includes actions in
the General Fund to distribute excess funding from
the close-out of FY 2023/24 and actions to
recognize FEMA reimbursements and Stadium
settlement revenue, as detailed below (five
affirmative Council votes required to
appropriate additional revenue and for the
use of unused balances):
a. Increase the Budget Stabilization Reserve
in the amount of $7,525,130, offset by an
increase to the Beginning Fund Balance, a
decrease in expenditures, and transfers
from other funds;
b. Increase the Pension Stabilization Reserve
in the amount of $5,379,912, offset by an
increase to the Beginning Fund Balance;
c. Increase the Non-Departmental budget by
$1,000,000 for General Obligation Bond
Implementation, offset by an increase to the
Beginning Fund Balance;
d. Increase the Human Resources
Department budget by $343,000, offset by
an increase to the Beginning Fund Balance;
e. Increase the City Clerk’s Office budget by
$82,000, offset by an increase to the
Beginning Fund Balance;
f. Increase the Transfer to the General
Government Capital Fund for the FHRMS
Update Project in the amount of
Recommendation:

City of Santa Clara Page 15 of 19 Printed on 11/27/2024 Joint Council and Authorities Concurrent &
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Meeting Agenda December 3, 2024
$1,000,000, offset by an increase to the
Beginning Fund Balance;
g. Increase the Transfer to the Public
Buildings Capital Fund for the Building
Parking Lot Improvements Project in the
amount of $216,000 to fund the library
concrete sidewalk replacement project,
offset by an increase to the Beginning Fund
Balance;
h. Increase the Transfer to the Public
Buildings Capital Fund and establish the
Commerce/Peddler’s Plaza Maintenance
Project in the amount of $429,894 to fund
the maintenance of the two properties,
offset by an increase to the Beginning Fund
Balance;
i. Increase the Transfer from the Other City
Operating Grant Trust Fund in the amount of
$8,135 to return unused funding related to
Covid-19 and to close out the Tobacco
Free Cities Grant Program, offset by an
increase to the Budget Stabilization
Reserve;
j. Increase the Transfer from the Public Works
Capital Projects Management Fund in the
amount of $162,667 to return savings,
offset by an increase to the Budget
Stabilization Reserve;
k. Increase the Transfer from the General
Government Capital Fund in the amount of
$84,237 to return capital project savings
and increase the Capital Projects Reserve
by $84,237;
l. Increase the Transfer from the Parks and
Recreation Capital Fund in the amount of
$2,642 to return capital project savings and
increase the Capital Projects Reserve by
$2,642;
m. Increase the Transfer from the Streets and
Highways Capital Fund in the amount of
$11,576 to return capital project savings
and increase the Capital Projects Reserve
by $11,576;
n. Establish a transfer to the newly established
Fire CUPA Fund in the amount of $392,826
City of Santa Clara Page 16 of 19 Printed on 11/27/2024 Joint Council and Authorities Concurrent &
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Meeting Agenda December 3, 2024
to track all CUPA-related activities
separately, offset by an increase to the
Beginning Fund Balance;
o. Decrease the Commerce/Peddler’s Plaza
carryover in the City Manager’s Office in the
amount of $1,000,000, offset by an
increase to the Budget Stabilization
Reserve;
p. Increase the Transfer to the Patrick Henry
Infrastructure Improvement Fund in the
amount of $4,266, offset by an increase to
the Beginning Fund Balance;
q. Recognize Beginning Fund Balance -
Restricted for Prepayments in the amount
of $93,892 and increase the Public Works
Department appropriation for remaining
developer deposits for third party plan
review and inspections;
r. Recognize Stadium settlement revenue in
the amount of $7,324,722 and increase the
Budget Stabilization Reserve by
$7,324,722;
s. Recognize a Transfer from the Other City
Departments Operating Grant Trust Fund in
the amount of $1,356,446 to recognize
FEMA reimbursements for Covid-related
expenses and increase the Budget
Stabilization Reserve by $1,356,446; and
t. Increase the Unrestricted Ending Fund
Balance by $2,400,000 to set aside funds
to address funding needs that arise during
FY 2024/25.

5. Add 1.0 Division Manager and 1.0 Management
Analyst in the Human Resources Department to
support the City’s safety program, employee
wellness, and the workers’ compensation
program.

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Meeting Agenda December 3, 2024

6. Action on Approval of Cost-of-Living Salary Adjustment for City Attorney; Approval of Amendment No. 1 to Employment
Agreement with City Attorney Glen Googins; Adoption of a Resolution Updating the Unclassified Salary Plan for Position of City Attorney
24-1213

1. Approve, and authorize Mayor to sign, Amendment
No. 1 to the Employment Agreement with City
Attorney Glen R. Googins;

2. Approve cost-of-living salary adjustment for City
Attorney of 3.25% retroactive to March 1, 2024,
resulting in a new annual salary of $356,212.50 (to
take effect on December 22, 2024), and a
retroactive payment of $9,099.38;

3. Adopt a Resolution updating the Unclassified
Salary Plan reflecting the new annual salary for the
position of City Attorney to satisfy the requirements
of California Code of Regulations Section 570.5,
effective December 22, 2024.

Recommendation:

7. Action on Recommendations from the Governance and Ethics Committee to Amend Council Policy 049 ("Community Grant Policy")
24-893
Adopt a resolution approving amendments to Council
Policy 049 (“Community Grant Policy”) that enhance
grant eligibility requirements and criteria, promote
accountability/increased protections for the City, and
expand post event requirements for grant recipients.

Recommendation:

REPORTS OF MEMBERS, SPECIAL COMMITTEES AND COUNCILMEMBER 030 REQUESTS

CITY MANAGER/EXECUTIVE DIRECTOR REPORT

ADJOURNMENT
The next regular scheduled meeting is on Tuesday, December 17, 2024 in the City Hall Council Chambers.

City of Santa Clara Page 18 of 19 Printed on 11/27/2024 Joint Council and Authorities Concurrent &
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Meeting Agenda December 3, 2024

MEETING DISCLOSURES
The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting.

In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

STREAMING SERVICES: As always, the public may view the meetings on SantaClaraCA.gov, Santa Clara City Television (Comcast cable channel 15 or AT&T U-verse channel 99), or the livestream on the City’s YouTube channel or Facebook page.

Note: The public cannot participate in the meeting through these livestreaming methods; livestreaming capabilities may be disrupted at times, viewers may always view and participate in meetings in-person and via Zoom as noted on the agenda.

AB23 ANNOUNCEMENT: Members of the Santa Clara Stadium Authority, Sports and Open Space Authority and Housing Authority are entitled to receive $30 for each attended meeting.

Note: The City Council and its associated Authorities meet as separate agencies but in a concurrent manner.

Actions taken should be considered actions of only the identified policy body.

LEGEND: City Council (CC); Stadium Authority (SA); Sports and Open Space Authority (SOSA); Housing Authority (HA); Successor Agency to the City of Santa Clara Redevelopment Agency (SARDA); Bayshore North Project Enhancement Authority (BNPEA); Public Facilities Financing Corporation (PFFC) Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes.

If no speaker card is submitted, the Minutes will reflect "Public Speaker." In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format. Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

Individuals who require an auxiliary aid or service for effective communication, or any other disability-related modification of policies or procedures, or other accommodation, in order to participate in a program, service, or activity of the City of Santa Clara, should contact the City’s ADA Coordinator at 408-615-3000 as soon as possible but no later than 48 hours before the scheduled event.

City of Santa Clara Page 19 of 19 Printed on 11/27/2024 Joint Council and Authorities Concurrent &
Stadium Authority Board Meeting
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
24-1167 Agenda Date: 12/3/2024

REPORT TO COUNCIL

SUBJECT
Recognition of High School Students Andrew Lam, Aayna Dash, Asmi Sawant, Aanya Mishra, Mithil Patil, and Anav Bordia for Community Service Projects

BACKGROUND
The following high school students have taken on community projects and initiatives which have benefited the community including Santa Clara with their service and commitment.

Andrew Lam
Santa Clara resident Andrew Lam attends The King’s Academy. In the past few years, Andrew has taken on many business initiatives to benefit the needs of others on both a local and global level. In 2019, Andrew won first place at the Santa Clara Children's Business Fair for creating an arcade game which encouraged participation from older adults, those with disabilities, children and people of all ages and collected gently used toys as prizes. He donated proceeds from the game to an orphanage in the Philippines. On evenings in the Rivermark neighborhood, Andrew and his sister sold boba drinks and donated proceeds from the sales to Grace Public School in India.

In 2020 during the pandemic, Andrew started a company “2gether We Are Greater” where he helped develop ear savers with a 3D printer and distributed to health care professionals to relieve pressure on their ears from wearing masks for long hours. In addition, he donated hand-sewn masks to the San Jose City Team Ministries for distribution to the unhoused population.

In 2023, Andrew designed his own apparel of clothing called “Bounce Company” and utilized the profits as microloans. He has supported startups in over nine different countries including in Costa Rica, Philippines, Indonesia, Pakistan, Madagascar, Turkey, Liberia, Congo, and New Delhi. In 2024, as President of The Big Brother Little Brother Club, Andrew coordinated a drive to provide kits to the homeless with over 230 packages donated. Through his school at The King's Academy, Andrew built a wheelchair ramp for an elderly couple confined to their house in Kentucky and helped build a single -family home in Mexico for a family in need.

Code for Cause
Code for Cause is the Bay Area's first philanthropic hackathon, co-founded to address local issues through technology and innovation. Code for Cause was co-founded by high school students from Basis Independent Silicon Valley including: Aayna Dash, Asmi Sawant, Aanya Mishra, Mithil Patil, and Anav Bordia.

The group combines coding with community impact, fostering solutions for real-world challenges in partnership with local nonprofits. In December 2023, the group hosted an inaugural event with over 130 participants, raised $5,000, and developed eight community partnerships, including the Union City of Santa Clara Page 1 of 2 Printed on 11/27/2024
powered by Legistar™
24-1167 Agenda Date: 12/3/2024
Bank of Switzerland and FalconX. Sponsored by companies like AOPS and Panda Cares, the event offered $1,000 in prizes, free meals, and custom shirts to foster an inclusive and engaging experience. One standout project was an app for InterTeach, a platform connecting students with volunteer tutors worldwide.

Since the first event, Code for Cause has partnered with seven other hackathons across the Bay Area, amplifying the mission to combine coding and social impact. Through these collaborations, Code for Cause continues to inspire innovation and create meaningful change in local communities.

DISCUSSION
At the December 3, 2024 City Council meeting, students Andrew Lam, Aayna Dash, Asmi Sawant, Aanya Mishra, Mithil Patil, and Anav Bordia will receive Mayoral Certificates of Recognition for their outstanding accomplishments and contributions to Santa Clara and the entire community.

ENVIRONMENTAL REVIEW
This is an information report only and no action is being taken by the City Council and no environmental review under the California Environmental Quality Act (“CEQA”) is required.

FISCAL IMPACT
There is no fiscal impact to the City other than staff time.

COORDINATION
This report was coordinated by the City Manager’s Office.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

Reviewed by: Maria Le, Assistant to the City Manager, City Manager’s Office Approved by: Jovan D. Grogan, City Manager

ATTACHMENTS

1. Mayoral Certificates of Recognition
City of Santa Clara Page 2 of 2 Printed on 11/27/2024
powered by Legistar™
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On behalf of the Santa Clara City Council, this certificate is presented to Andrew Lam
in recognition of winning P' place at the Santa Clara Children '.s Business Fair,fandraising and donating to schools in other countries, working with rmdtiple local, nonprofits, providing.financial, assistance to startup compames around the world, assisting the elderly in our community, and building homes from the ground up,for those in need in Mexi,co on this 3rd day of December 2024.
~ ·
~
.

LISA M. GILLMOR
MAYOR

CITY OF SANTA CLARA
li].::, c.lil
On behal,f of the Santa Clara City Council, this certificate is presented to Aanya Mishra
Code for Cause
in recognition of co-founding Code for Cause, hosting the Bay Area s first philanthropic '1ackathon to address local, issues through technology and innovation,fostering solutions for rea/,-world chal,lenges h
se
and partnering with local, nonprofits in our community
on this 3rd day of December 2024.
cY. . . ~ . M~
LISA M. GILLMOR
MAYOR

CITY OF SANTA CLARA
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BEi
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On behalf of the Santa Clara City Council, this certificate is presented to Aayna Dash
Code for Cause
in recognition of co-founding Code for Cause, hosting the Bay Area's first philanthropic hackathon to address local issues through technology and innovation,fostering solutions for real-world challenges and partnering with local nonprofits in our community
on this 3rd day of December 2024.
cY. . . ~M~ LISA M. GILLMOR
MAYOR

CITY OF SANTA CLARA
d
AS
[i].::, c.lil
On bel,a/,f of the Santa Gara City Council, this certificate is presented to Anav Bordia
Code for Cause
in recognition of co-faunding Code for Cause, hosting the Bay Area '5:'first philanthropic hackathon to address local, issues through technology and innovatian,fostering solutions for rea/,-world cl,a/,lenges and partnering with local, nonprofits in our comrnuni,ty on this 3rd day of December 2024.

CY . ~ .

LISA M. GILLMOR
MAYOR

CITY OF SANTA CLARA
d
-leJ
c:.@
On bel,alf of the Santa Clara City Cauncil, this certificate is presented to Asmi Sawant
Code for Cause
in recognition of co-founding Code for Cause, hosting the Bay Area's first philanthropic hackathon to address local, issues through technology and innovation,fostering solutions for rea/,-world cl,allenges and partnering with local, mnpro.fits in our community
on this 3rd day of December 2024.
(P. . .

LISA
MAYOR
M. GILLMOR
~

CITY OF SANTA CLARA
d
-Je]
liJ.:, c.lil
On behalf of the &mta Clara City Council this certificate is presented to Mithil Patil
Code for Cause
in recognition of c~founding Code for Cause, hosting the Bay Area 's first philanffrropic hackathon to address local, issues through technology and innovation,fostering solutions for rem-world challenges b
131?::
and partnering with local, nonprofits in our community
on this 3rd day of December 2024.
~ - .
~~LISA M. GILLM~ OR
MAYOR

CITY OF SANTA CLARA
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-IEI
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
24-1207 Agenda Date: 12/3/2024

REPORT TO COUNCIL

SUBJECT
Action on the October 29, 2024 Special City Council Meeting Minutes, November 12, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes, and November 19, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes.

RECOMMENDATION
Approve the meeting minutes of:

October 29, 2024 Special City Council Meeting Minutes,
November 12, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes, November 19, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes.

City of Santa Clara Page 1 of 1 Printed on 11/27/2024
powered by Legistar™
City of Santa Clara
Special Meeting Minutes
Call and Notice of Special Meeting of the
City Council
Draft
7:00 PM Hybrid Meeting
City Hall Council Chambers/Virtual
1500 Warburton Avenue
Santa Clara, CA 95050
10/29/2024
The City of Santa Clara is conducting City Council meetings in a hybrid manner (in-person and continues to have methods for the public to participate remotely). • Via Zoom:
o https://santaclaraca.zoom.us/j/99706759306
Meeting ID: 997-0675-9306
o Phone 1(669) 900-6833
How to Submit Written Public Comment Before City Council Meeting:

1. Use the eComment tab located on the City Council Agenda page https://santaclara.legistar.com/Calendar.aspx). eComments are directly sent to the iLegislate application used by City Council and staff, and become part of the public record. eComment closes 15 minutes before the start of a meeting.

NOTE: Please note eComments and Emails received as public comment will not be read aloud during the meeting.

City of Santa Clara Page 1 Printed on 11/05/2024
Meeting Minutes 10/29/2024
NOTICE IS HEREBY GIVEN that, pursuant to the provisions of California Government Code §54956 (“The Brown Act”) and Section 708 of the Santa Clara City Charter, the Mayor calls for a Special Meeting of the City Council of the City of Santa Clara, to commence and convene on October 29, 2024, at 7:00 pm for a Special Meeting to be held virtually and in the City Hall Council Chambers located in the East Wing of City Hall at 1500 Warburton Avenue, Santa Clara, California, to consider the following matter(s) and to potentially take action with respect to them. 7:00 PM SPECIAL CITY COUNCIL MEETING
Call to Order in the Council Chambers
Vice Mayor Becker called the special meeting to order at 7:09 PM.

Pledge of Allegiance and Statement of Values
Roll Call
Council recited the Pledge of Allegiance.

Councilmember Park recited the Statement of Values.

Deputy City Clerk Nguyen recited the Statement of Behavioral Standards and also noted that any registered Lobbyist speaking during the Public Meeting will need to identify themselves and whom they represent.

Councilmember Kathy Watanabe, Councilmember Raj Chahal, Councilmember Karen Hardy, Councilmember Kevin Park,
Councilmember Suds Jain, and Vice Mayor Anthony Becker

Present: 6 -

Absent: 1 - Mayor Lisa M. Gillmor
A motion was made by Councilmember Hardy, seconded by
Councilmember Chahal, to excuse Mayor Gillmor from the meeting.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, and Vice Mayor Becker
6 -

Absent: 1 - Mayor Gillmor

PUBLIC HEARING/GENERAL BUSINESS
City of Santa Clara Page 2 Printed on 11/05/2024
Call and Notice of Special Meeting of
the City Council
Meeting Minutes 10/29/2024

1. 24-1079 Action on the Carryover of FY 2023/24 Funding for the Operation of a 30-unit (90-private bedrooms) Homekey Interim Housing Development on Santa Clara County-Owned Land Located at the southeast corner of Lawrence Expressway and Benton Street (CEQA: Statutory Exemption under Government Code Section 65913.4, SB 35 Affordable Housing Projects) and Approve the Related Budget Amendment
Recommendation: 1. Approve the FY 2024/25 budget amendment in the City Affordable Housing Fund, recognizing an increase to the beginning fund balance in the amount of $5,124,369 and increasing the capital outlay appropriation in the amount of $5,124,369 (five affirmative Council votes required for the use of unused balances);

2. Allocate the remaining balance of $1,470,000 in PLHA funds (for a total City contribution of $6,594,369) to secure state Homekey Round 3 funds to construct a three story 30-unit interim family housing development on a County-owned site at Lawrence Expressway and Benton Street City Manager Grogan made some opening remarks and introduced Acting Director of Community Development Brilliot who provided a Powerpoint presentation on the Homekey Interim Housing Development located at Lawrence Expressway and Benton Street.

Council questions and comments followed.

Acting Director of Community Development Brilliot, City Manager Grogan, City Attorney Googins, KJ Kaminski (Acting Director, County of Santa Clara Office of Supportive Housing), Hillary Armstrong (Deputy Director, County of Santa Clara Office of Supportive Housing), Natalie Monk (Housing Community
Development Lead, County of Santa Clara Office of Supportive Housing) addressed Council questions.

Public Comments: Susan Ellenberg (additional time given by Jose) Elysa G
Alan Altman
Shalini Venkatesh
Kimmy La
Tom MacDevitt
Linda Knepper
Sarah Ford (additional time given by Casey Robbins
and Vanessa Chicas)
John Haggerty
Ken Kratz
Zhihao Ji
Jordan Grimes
City of Santa Clara Page 3 Printed on 11/05/2024
Call and Notice of Special Meeting of
the City Council
Meeting Minutes 10/29/2024
Deborah Dempsey
Erji Wang
Suraj Dasika
Joy Zong
Ashish Verma
Public Speaker
Charles Elliotte
Baseer
Public Speaker
Usha Pidaparthy
Council discussion ensued.

Acting Director of Community Development Brilliot, City Manager Grogan, and City Attorney Googins addressed Council questions.

A motion was made by Councilmember Hardy, seconded by
Councilmember Jain, to (1) approve the FY 2024/25 budget amendment in the City Affordable Housing Fund, recognizing an increase to the beginning fund balance in the amount of $5,124,369 and increasing the capital outlay appropriation in the amount of $5,124,369; and (2) allocate the remaining balance of $1,470,000 in PLHA funds (for a total City contribution of $6,594,369) to secure state Homekey Round 3 funds to construct a three story 30-unit interim family housing development on a County-owned site at Lawrence Expressway and Benton Street.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, and Vice Mayor Becker
6 -
Excused: 1 - Mayor Gillmor
Vice Mayor Becker called for a recess at 10:45 PM and reconvened the meeting at 11:03 PM.

City of Santa Clara Page 4 Printed on 11/05/2024
Call and Notice of Special Meeting of
the City Council
Meeting Minutes 10/29/2024

2. 24-144 Action on Resolutions Establishing the Average Per-Acre Land Values, Occupant Density Figures, and Park Development Costs to be Used in Setting the Parkland In-Lieu Fees for New Residential Development and Amending the FY 2024-25 Municipal Fee Schedule Updating Parkland In-Lieu Fees Accordingly
Recommendation: 1. Adopt a Resolution (Attachment 6) in accordance with Santa Clara City Code Chapter 17.35 establishing the average per-acre land values, occupant density figures, and park development costs to be used in the setting of parkland in-lieu fees for residential development.

2. Adopt a Resolution (Attachment 7) to amend the FY 2024/25 Municipal Fee Schedule to modify the Parkland Dedication In-Lieu Fees.

City Manager Grogan made some opening remarks and introduced Assistant City Manager/Director of Parks and Recreation Bojorquez who provided a Powerpoint presentation.

Council questions and comments followed.

Assistant City Manager/Director of Parks and Recreation Bojorquez addressed Council questions.

A motion was made by Councilmember Park, seconded by
Councilmember Jain, to (1) adopt Resolution No. 24-9383 in accordance with Santa Clara City Code Chapter 17.35 establishing the average per-acre land values, occupant density figures, and park development costs to be used in the setting of parkland in-lieu fees for residential development; and (2) adopt Resolution No. 24-9384 to amend the FY 2024/25 Municipal Fee Schedule to modify the Parkland Dedication In-Lieu Fees.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, and Vice Mayor Becker
6 -
Excused: 1 - Mayor Gillmor

ADJOURNMENT
The meeting was adjourned at 11:20 PM.

A motion was made by Councilmember Jain, seconded by
Councilmember Chahal, to adjourn the meeting.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, and Vice Mayor Becker
6 -
Excused: 1 - Mayor Gillmor
City of Santa Clara Page 5 Printed on 11/05/2024
Call and Notice of Special Meeting of
the City Council
The next regular scheduled meeting is on Tuesday, November 12, 2024 in the City Hall Council Chambers.

Meeting Minutes 10/29/2024

In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

AB23 ANNOUNCEMENT: Members of the Santa Clara Stadium Authority, Sports and Open Space Authority and Housing Authority are entitled to receive $30 for each attended meeting.

Note: The City Council and its associated Authorities meet as separate agencies but in a concurrent manner. Actions taken should be considered actions of only the identified policy body.

LEGEND: City Council (CC); Stadium Authority (SA); Sports and Open Space Authority (SOSA); Housing Authority (HA); Successor Agency to the City of Santa Clara Redevelopment Agency (SARDA); Bayshore North Project Enhancement Authority (BNPEA); Public Facilities Financing Corporation (PFFC)
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

City of Santa Clara Page 6 Printed on 11/05/2024
Call and Notice of Special Meeting of
the City Council
City of Santa Clara
Meeting Minutes of the
Joint City Council and Authorities Concurrent &
Santa Clara Stadium Authority Board
Draft
5:30 PM Hybrid Meeting
City Hall Council Chambers/Virtual
1500 Warburton Avenue
Santa Clara, CA 95050
11/12/2024
The City of Santa Clara is conducting City Council meetings in a hybrid manner (in-person and continues to have methods for the public to participate remotely).

How to Submit Written Public Comment Before City Council Meeting:

NOTE: Please note eComments and Emails received as public comment will not be read aloud during the meeting.

Agendas, Staff Reports and some associated documents for City Council items may be viewed on the Internet at https://santaclara.legistar.com/Calendar.aspx All public records relating to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at the Office of the City Clerk at Sana Clara City Hall, 1500 Warburton Avenue, Santa Clara, CA 95050 at the same time that the public records are distributed or made available to the legislative body. Any draft contracts, ordinances and resolutions posted on the Internet site or distributed in advance of the Council meeting may not be the final documents approved by the City Council. For the final document, you may contact the Office of the City Clerk at (408) 615-2220 or [email protected].
• Via Zoom:
o https://santaclaraca.zoom.us/j/99706759306
Meeting ID: 997-0675-9306
o Phone 1(669) 900-6833
City of Santa Clara Page 1 Printed on 11/22/2024
Meeting Minutes 11/12/2024
5:30 PM CLOSED SESSION
Call to Order in the Council Chambers
Mayor/Chair Gillmor called the Closed Session to order at 5:33 PM.

Confirmation of Quorum
Assistant City Clerk Pimentel confirmed a quorum.

1.A 24-954 Conference with Labor Negotiators (CC)
Pursuant to Gov. Code § 54957.6
City representatives: Jovan D. Grogan, Nadine Nader, Aracely Azevedo, Marco Mercado, Charles Sakai, Glen R. Googins
Employee Organization(s):

Unit # 6 - AFSCME Local 101 (American Federal of State, County and Municipal Employees)
Unit # 9 - Miscellaneous Unclassified Management Employees

1.B 24-1107 Public Employee Performance Evaluation (CC) Pursuant to Government Code § 54957(b)(1)
Title: City Attorney
Public Comment
None.

Convene to Closed Session (Council Conference Room)
Mayor Gillmor adjourned into Closed Session at 5:35 PM.

Vice Mayor Becker joined the Closed Session at 5:57 PM. 7:00 PM JOINT CITY COUNCIL/STADIUM AUTHORITY BOARD MEETING Call to Order in Council Chambers
Mayor/Chair Gillmor called the regular meeting to order at 7:05 PM.

Pledge of Allegiance and Statement of Values
Council/Board recited the Pledge of Allegiance.

Council/Boardmember Park recited the Statement of Values.

City of Santa Clara Page 2 Printed on 11/22/2024
Closed Session - 5:30 PM | Regular Meeting - 7:00 PM
Joint City Council and Authorities Concurrent &
Santa Clara Stadium Authority Board Meeting
Meeting Minutes 11/12/2024
24-1181 Moment of Silence for Jose Emiliano Zamora
Mayor/Chair Gillmor called for a moment of silence to grieve the loss of Jose Emiliano Zamora who recently passed away.

Roll Call
Assistant City Clerk/Secretary Pimentel recited the AB23 announcement and Statement of Behavorial Standards.

Assistant City Clerk/Secretary Pimentel also noted that any registered Lobbyist speaking during the Public Meeting will need to identify themselves and whom they represent.

Council/Boardmember Kathy Watanabe, Council/Boardmember Raj Chahal, Council/Boardmember Karen Hardy, Council/
Boardmember Kevin Park, Council/Boardmember Suds Jain, Vice Mayor/Chair Anthony Becker, and Mayor/Chair Lisa M. Gillmor

Present: 7 -

REPORTS OF ACTION TAKEN IN CLOSED SESSION MATTERS
City Attorney Googins reported there was no reportable action from Closed Session.

CONTINUANCES/EXCEPTIONS/RECONSIDERATIONS
City Manager Grogan introduced the new Director of Parks and Recreation Damon Sparacino who provided some remarks.

SPECIAL ORDER OF BUSINESS
City of Santa Clara Page 3 Printed on 11/22/2024
Joint City Council and Authorities Concurrent &
Santa Clara Stadium Authority Board Meeting
Meeting Minutes 11/12/2024

2.A 24-1099 Recognition of Srivalli Adarapu for a Community Appreciation Project for JW House and City Departments and Anushka Jain for a Publication of a Book
Mayor Gillmor, on behalf of the Council, recognized Srivalli Adarapu for a community appreciation project for JW House.

Srivalli Adarapu provided some remarks.

Council comments followed.

City Manager Grogan made some comments about the JW House.

Mayor Gillmor, on behalf of the Council, recognized Anushka Jain for a publication of a book.

Anushka Jain provided some remarks.

Council comments followed.

2.B 24-567 Proclamation of November 2024 as Sikh Awareness and Acceptance Month
Mayor Gillmor, on behalf of the Council, proclaimed November 2024 as Sikh Awareness and Acceptance Month.

Harpreet Singh Kohli (Silicon Valley Gurdwara) provided some remarks.

Council comments followed.

City of Santa Clara Page 4 Printed on 11/22/2024
Joint City Council and Authorities Concurrent &
Santa Clara Stadium Authority Board Meeting
Meeting Minutes 11/12/2024

2.C 24-1126 Action on Resolution by the City of Santa Clara City Council Expressing Gratitude and Appreciation for the Hard Work and Professionalism of City Staff
Recommendation: Adopt a Resolution in the form presented expressing gratitude and appreciation for the hard work and professionalism of City staff Councilmember Hardy introduced this item.

Public Comments: Brian Darby
Howard Gibbins
Mary Grizzle
Council comments followed.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to adopt Resolution No. 24-9385
expressing gratitude and appreciation for the hard work and professionalism of City staff.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -

CONSENT CALENDAR
Council/Boardmember Chahal noted he will recuse from Item 3.F regarding purchase of control enclosures with protection and control panels and neutral founding resistors due to a conflict of interest of owning property within 1000 feet of the subject property.

A motion was made by Vice Mayor/Chair Becker, seconded by Council/Boardmember Hardy, to approve the Consent Calendar (except item 3.F)

Aye: Council/Boardmember Kathy Watanabe, Council/Boardmember Raj Chahal, Council/Boardmember Karen Hardy, Council/Boardmember Kevin Park, Council/Boardmember Suds Jain, Vice Mayor/Chair Anthony Becker, and Mayor/Chair Lisa M. Gillmor
7 -
City of Santa Clara Page 5 Printed on 11/22/2024
Joint City Council and Authorities Concurrent &
Santa Clara Stadium Authority Board Meeting
Meeting Minutes 11/12/2024

3.A 24-580 Action on the July 16, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes, August 20, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes, August 27, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes, September 3, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes, Special September 4, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes, and October 8, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes.

Recommendation: Approve the meeting minutes of:

July 16, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting,
August 20, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting,
August 27, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting,
September 3, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting,
Special September 4, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting,
October 8, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting
A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to approve the meeting minutes of: July 16, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting, August 20, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting, August 27, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting, September 3, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting, Special September 4, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting, and October 8, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -
City of Santa Clara Page 6 Printed on 11/22/2024
Joint City Council and Authorities Concurrent &
Santa Clara Stadium Authority Board Meeting
Meeting Minutes 11/12/2024

3.B 24-20 Board, Commissions and Committee Minutes
Recommendation: Note and file the Minutes of:

Planning Commission - October 9, 2024
Parks & Recreation Commission - September 16, 2024
Senior Advisory Commission - June 24, 2024
Senior Advisory Commission - September 23, 2024
Cultural Commission - August 5, 2024
Youth Commission - May 14, 2024
Youth Commission - September 10, 2024
A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to note and file the minutes of Planning Commission - October 9, 2024, Parks & Recreation Commission - September 16, 2024, Senior Advisory Commission - June 24, 2024, Senior Advisory Commission - September 23, 2024, Cultural Commission - August 5, 2024, Youth Commission - May 14, 2024, Youth Commission - September 10, 2024.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -
City of Santa Clara Page 7 Printed on 11/22/2024
Joint City Council and Authorities Concurrent &
Santa Clara Stadium Authority Board Meeting
Meeting Minutes 11/12/2024

3.C 24-55 Action on an Agreement for Services with DLT Solutions, LLC. for the Acquisition and Implementation of a Drawing Management System to be Funded by Silicon Valley Power
Recommendation: 1. Authorize the City Manager or designee to execute a service agreement and license agreement with DLT Solutions, LLC for a Drawing Management System including all software, implementation, configuration, training, support, maintenance, and related professional services for a term commencing on or about November 15, 2024, and ending on or about February 28, 2028, with a maximum compensation not to exceed $400,000 to be funded by the SVP Operating or Capital Fund, subject to the appropriation of funds and the review and approval as to form by the City Attorney; and

2. Authorize the City Manager to City Manager to take any actions as necessary to implement and administer the agreements and to negotiate and execute amendments to (a) add or delete services consistent with the scope of the agreements; (b) adjust future rates to account for changes in software license subscription, annual support services, and other services required; (c) exercise renewals for software subscriptions and support services for up to an additional six years (for a total term of up to nine years); and (d) increase the maximum compensation by up to an additional $400,000 for maximum compensation not to exceed $800,000 over a nine-year term, subject to the appropriation of funds and the review and approval as to form by the City Attorney.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to (1) authorize the City Manager or designee to execute a service agreement and license agreement with DLT Solutions, LLC for a Drawing Management System including all software, implementation, configuration, training, support, maintenance, and related professional services for a term commencing on or about November 15, 2024, and ending on or about February 28, 2028, with a maximum compensation not to exceed $400,000 to be funded by the SVP Operating or Capital Fund, subject to the appropriation of funds and the review and approval as to form by the City Attorney; and (2) authorize the City Manager to take any actions as necessary to implement and administer the agreements and to negotiate and execute
amendments to (a) add or delete services consistent with the scope of the agreements; (b) adjust future rates to account for changes in software license subscription, annual support services, and other services required; (c) exercise renewals for software subscriptions and support services for up to an additional six years (for a total term of up to nine years); and (d) increase the maximum City of Santa Clara Page 8 Printed on 11/22/2024
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compensation by up to an additional $400,000 for maximum compensation not to exceed $800,000 over a nine-year term, subject to the appropriation of funds and the review and approval as to form by the City Attorney.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -
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3.D 24-652 Action on an Agreement with Hello Housing for Administration Services for the Below Market Price Purchase Program
Recommendation:

1. Authorize the City Manager or designee to execute an agreement with Hello Housing (Agreement) for administration services for the Below-Market Purchase Program for an initial term starting on or around December 1, 2024 and ending on June 30, 2027 for a total maximum compensation of $530,000 subject to the appropriation of funds and approval as to form by the City Attorney; and

2. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement to (a) add or delete services consistent with the Agreement’s scope of services; (b) adjust future rates in accordance with the Agreement; (c) extend the term of the Agreement through June 30, 2034; and (d) increase the maximum compensation by $1,609,610 for a new not-to-exceed maximum compensation amount of $2,139,610 for the full term of the agreement, subject to the appropriation of funds and approval as to form by the City Attorney.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to (1) authorize the City Manager or designee to execute an agreement with Hello Housing (Agreement) for administration services for the Below-Market Purchase Program for an initial term starting on or around December 1, 2024 and ending on June 30, 2027 for a total maximum compensation of $530,000 subject to the appropriation of funds and approval as to form by the City Attorney; and (2) authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute
amendments to the Agreement to (a) add or delete services consistent with the Agreement’s scope of services; (b) adjust future rates in accordance with the Agreement; (c) extend the term of the Agreement through June 30, 2034; and (d) increase the maximum compensation by $1,609,610 for a new not-to-exceed maximum compensation amount of $2,139,610 for the full term of the agreement, subject to the appropriation of funds and approval as to form by the City Attorney.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -
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3.E 24-796 Action to Authorize the City Manager to Execute Agreements with Tasman East Station Holdco, LLC for the Construction of Park Improvements and the Maintenance of the Parks located at 5123 Calle de Sol within the Tasman East Specific Plan Area at the Developer’s Sole Cost Recommendation: Authorize the City Manager to execute the Parkland Agreement and the Park Maintenance Agreement with Tasman East Station Holdco, LLC on substantially the terms and in the forms presented, with such minor, non-substantive changes and amendments that may be necessary to implement the project, in final forms approved by the City Attorney.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to authorize the City Manager to execute the Parkland Agreement and the Park Maintenance Agreement with Tasman East Station Holdco, LLC on substantially the terms and in the forms presented, with such minor, non-substantive changes and amendments that may be necessary to implement the project, in final forms approved by the City Attorney.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -
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3.F 24-1056 Action on Authorizing the City Manager to Negotiate and Execute Agreement(s) with Vendor(s) for the Purchase of Control Enclosures with Protection and Control Panels and Neutral Grounding Resistors to be Funded by the Electric Utility Capital Fund
Recommendation: 1. Subject to compliance with Chapter 2.105 of the City Code, review and approval as to form by the City Attorney, and appropriation of funds, authorize the City Manager or designee to negotiate and execute agreement(s) or purchase order(s) with vendors for Control Enclosures with Protection and Control Panels and Neutral Grounding Resistors listed below for a maximum compensation amount of $14,950,000; and

2. Authorize the City Manager or designee to (a) take any actions as necessary to implement and administer the agreement(s) and/or purchase order(s), and (b) negotiate and execute amendments to the agreement(s) for (i) design changes, (ii) any unanticipated issues, (iii) extensions of the term, or (iv) the purchase of additional Control Enclosures with Protection and Control Panels and Neutral Grounding Resistors, subject to the above maximum compensation limit and review and approval as to form by the City Attorney.

Councilmember Chahal recused himself from this item due to a conflict of interest as he owns property within 1000 feet of the subject property.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to (1) subject to compliance with Chapter

2.105 of the City Code, review and approval as to form by the City Attorney, and appropriation of funds, authorize the City Manager or designee to negotiate and execute agreement(s) or purchase order(s) with vendors for Control Enclosures with Protection and Control Panels and Neutral Grounding Resistors listed below for a maximum compensation amount of $14,950,000; and (2) authorize the City Manager or designee to (a) take any actions as necessary to implement and administer the agreement(s) and/or purchase order(s), and (b) negotiate and execute amendments to the agreement(s) for (i) design changes, (ii) any unanticipated issues, (iii) extensions of the term, or (iv) the purchase of additional Control Enclosures with Protection and Control Panels and Neutral Grounding Resistors, subject to the above maximum compensation limit and review and approval as to form by the City Attorney.

Aye: Councilmember Watanabe, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor 6 -
Recused: 1 - Councilmember Chahal
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3.G 24-1604 Action on an Agreement with Real Environmental Products, LLC for Landfill Gas Collection System and Cover Maintenance and Repair Services Recommendation: 1. Determine that the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of California Code of Regulations; and

2. Authorize the City Manager to execute an agreement with Real Environmental Products, LLC for landfill gas collection system and cover maintenance and repair services for a total not-to-exceed amount of $1,200,000 over a three-year term, subject to annual appropriations of funds and approval as to form by the City Attorney.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to (1) determine that the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of California Code of Regulations; and (2) authorize the City Manager to execute an agreement with Real Environmental Products, LLC for landfill gas collection system and cover maintenance and repair services for a total not-to-exceed amount of $1,200,000 over a three-year term, subject to annual appropriations of funds and approval as to form by the City Attorney.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -

3.H 24-915 Action on the Historic Preservation Agreement (Mills Act Contract) (PLN24-00264) for 1756 Fremont Street
Recommendation: 1. Determine that the project is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15331(Class 31 - Historical Resource Restoration / Rehabilitation); and

2. Authorize the City Manager to execute a Mills Act Contract in a final form approved by the City Attorney and adopt the 10-Year Restoration and Maintenance Plan associated with the property at 1756 Fremont Street.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to (1) determine that the project is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15331(Class 31 - Historical Resource Restoration / Rehabilitation); and (2) authorize the City Manager to execute a Mills Act Contract in a final form approved by the City Attorney and adopt the 10-Year Restoration and Maintenance Plan associated with the property at 1756 Fremont Street.

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Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -

3.I 24-990 Informational Report on 2024 Q3 Legislative Updates Recommendation: Note and file the informational report on 2024 Q3 legislative updates.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to note and file the informational report on 2024 Q3 legislative updates.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -

3.J 24-1073 Action to Approve Revisions to the Existing Resource Analyst II (Job Code 696) and Senior Resource Analyst (Job Code 771) Class Specifications Recommendation: Approve revisions to the existing Resource Analyst II (Job Code 696) and Senior Resource Analyst (Job Code 771) class specifications A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to approve revisions to the existing Resource Analyst II (Job Code 696) and Senior Resource Analyst (Job Code 771) class specifications.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -

3.K 24-1096 Action on the Schematic Design for the New Public Mini Park at 4590 Patrick Henry Drive
Recommendation: Approve the Revised Schematic Design for the New Public Mini Park at 4590 Patrick Henry Drive
A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to approve the Revised Schematic Design for the New Public Mini Park at 4590 Patrick Henry Drive.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -
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3.L 24-1090 Action to Waive Second Reading and Adopt Ordinance No. 2073 Amending Section 3.25.030 of the Santa Clara City Code to Reflect a 1% Increase in the Transient Occupancy Tax Rate.

Recommendation: Waive second reading and adopt Ordinance No. 2073 amending section

3.25.030 of the Santa Clara City Code to reflect the increase in the Transient Occupancy Tax rate.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to waive second reading and adopt
Ordinance No. 2073 amending section 3.25.030 of the Santa Clara City Code to reflect the increase in the Transient Occupancy Tax rate.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -

SANTA CLARA STADIUM AUTHORITY BOARD CONSENT CALENDAR

4.A 24-686 Informational Report on Stadium Authority and Stadium Manager Meetings for the Period of April 1 to June 30, 2024
Recommendation: Note and file the quarterly report on Stadium Authority and Stadium Manager staff meetings and corresponding summaries for the period of April 1 to June 30, 2024.

A motion was made by Vice Chair Becker, seconded by
Boardmember Hardy, to note and file the quarterly report on Stadium Authority and Stadium Manager staff meetings and corresponding summaries for the period of April 1, 2024 to June 30, 2024.

Aye: Boardmember Watanabe, Boardmember Chahal, Boardmember Hardy, Boardmember Park, Boardmember Jain, Vice Chair Becker, and Chair Gillmor
7 -

4.B 24-835 Adopt the Stadium Authority’s Resolution Amending the Conflict of Interest Code for Designated Positions as Required by the Political Reform Act and Regulations of the Fair Political Practices Commission Recommendation: Adopt the Resolution amending the Stadium Authority Conflict of Interest Code required by the Political Reform Act and Regulations of the Fair Political Practices Commission.

A motion was made by Vice Chair Becker, seconded by
Boardmember Hardy, to adopt Resolution No. 24-1(SA) amending the Stadium Authority Conflict of Interest Code required by the Political Reform Act and Regulations of the Fair Political Practices Commission.

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Aye: Boardmember Watanabe, Boardmember Chahal, Boardmember Hardy, Boardmember Park, Boardmember Jain, Vice Chair Becker, and Chair Gillmor
7 -

PUBLIC PRESENTATIONS
Akos Szoboszlay expressed concerns regarding bike lanes prohibition.

Lakshin expressed concerns regarding political freedom and expression.

Howard Gibbins thanked City staff for their hard work regarding vendor permits.

Satish Chandra (additional time given by Geetanjali) mourned the loss of Jose Zamora and expressed concerns regarding negative political attacks.

Mary Grizzle spoke about downtown development.

Brian Darby spoke about people with mental health struggles.

Albert Gonzalez spoke about mental health in school and the recent election.

Harbir Bhatia spoke about moving forward after the election. 24-1183 Public Presentations

CONSENT ITEMS PULLED FOR DISCUSSION
None.

PUBLIC HEARING/GENERAL BUSINESS
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5. 24-1040 Action on a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program and Route Approval for the Silicon Valley Power 115 kilovolt Transmission Line from the Northern Receiving Station to the Kifer Receiving Station (Continued from October 8, 2024)
Recommendation: 1. Adopt a Resolution adopting the Mitigated Negative Declaration and the Mitigation Monitoring and Reporting Program for the New 115kV Transmission Line Project between the Northern Receiving Station and Kifer Receiving Station; and

2. Approve Route A, Option 1, for an entirely overhead alignment of the New 115kV Transmission Line, with authorization to Silicon Valley Power staff to make minor alignment adjustments based on final project engineering and design.

Councilmember Chahal recused himself from this item due to a conflict of interest as he owns property within 1000 ft of the subject property.

Councilmember Park noted that he would be leaving the meeting. He provided some comments and left the dias at 8:33 PM.

City Manager Grogan made some opening remarks and introduced Chief Electric Utility Officer Pineda who provided a Powerpoint prsentation on the115 kV Transmission Line Project.

Gabor Mezei (Principal Scientist, Exponent) and Gary Johnson (Senior Managing Scientist, Exponent) provided a Powerpoint presentation on electromagnetic fields.

Council comments and questions followed.

Chief Electric Utility Officer Pineda, Gabor Mezei (Principal Scientist, Exponent) and Gary Johnson (Senior Managing Scientist,
Exponent) responded to Council questions.

Public Comments: Satish Chandra
Tadinada)
Corina Tyagi
Rachana Ramesh
Dyuti Batchu
Prashant Tiwari (additional time given by Ishoon)
Preetika Tiwari (additional time given by Meesha)
Kanupriya
Shankar Pandravada (additional time given by Harini
Anika Andrujuta
Manjunath Jagannatathrao
Vandana Gupta
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Aarna Agrawal
Siara
Richika (additional time given by Vik Sharma)
Usha Ganesh
Hamesh
Praneet Mungara
Simple
Neelam D
Harbir Bhatia
Suneet
James O'Connor
Sharath
Saurabh Sharma
Ramiya Venkatachalam
Linda
Edward Strine
Chief Electric Utility Officer Pineda addressed some of the comments that came up during Public Comments.

Council questions and comments followed.

Chief Electric Utility Pineda addressed Council questions.

A motion was made by Councilmember Hardy, seconded by
Councilmember Jain, to (1) adopt Resolution No. 24-9386 adopting the Mitigated Negative Declaration and the Mitigation Monitoring and Reporting Program for the New 115kV Transmission Line Project between the Northern Receiving Station and Kifer Receiving Station; and (2) approve Route A, Option 1, for an entirely overhead alignment of the New 115kV Transmission Line, with authorization to Silicon Valley Power staff to make minor alignment adjustments based.

Aye: Councilmember Watanabe, Councilmember Hardy, Councilmember Jain, and Mayor Gillmor
4 -
Nay: 1 - Vice Mayor Becker

Absent: 1 - Councilmember Park
Recused: 1 - Councilmember Chahal
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Mayor/Chair Gillmor called a recess at 11:10 PM and reconvened the meeting at 11:30 PM.

6. 24-921 Public Hearing: Actions on a Rezone from PD - Planned Development to HI - Heavy Industrial and Variance for the Property Located at 2201 Lafayette Street to Allow Reestablishment of Industrial Uses for a Product Engineering Development and Manufacturing Business
Recommendation: Alternatives 1 & 4

1. Determine that the Project is categorically exempt under Section 15301 (Class 1 Existing Facilities) of the CEQA Guidelines;

2. Adopt a resolution approving the Rezone from Planned Development (PD) to Heavy Industrial (HI) for the property located at 2201 Lafayette Street, subject to conditions of approval; and

3. Adopt a resolution approving the Variance for a reduction in parking spaces, including the required findings.

Mayor Gillmor opened the Public Hearing.

City Manager Grogan gave some opening remarks and introduced Acting Director of Community Development Brilliot who provided a Powerpoint presentation regarding a rezone application for the property located at 2201 Lafayette Street.

Council comments and questions followed.

Acting Director of Community Development Brilliot addressed Council questions.

John Ha provided a verbal presentation on behalf of the applicant.

Public Comment: Linda
A motion was made by Vice Mayor Becker, seconded by
Councilmember Hardy, to close the Public Hearing.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor 6 -

Absent: 1 - Councilmember Park
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Acting Director of Community Development Brilliot and John Ha addressed questions from the public.

Council questions followed.

Acting Director of Community Development Brilliot and City Attorney Googins addressed Council questions.

Council discussion ensued.

A motion was made by Councilmember Hardy, seconded by
Councilmember Jain, to (1) determine that the Project is categorically exempt under Section 15301 (Class 1 Existing Facilities) of the CEQA Guidelines; (2) adopt Resolution No. 24-9387 approving the Rezone from Planned Development (PD) to Heavy Industrial (HI) for the property located at 2201 Lafayette Street, subject to conditions of approval; and (3) adopt Resolution No. 24-9388 approving the variance for a reduction in parking spaces, including the required findings.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor 6 -

Absent: 1 - Councilmember Park
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7. 24-512 Action on Resolutions Accepting the Benton Street Bikeway Planning Study, Selecting a Preferred Design Concept and, as Appropriate, Taking Related Actions Regarding Parking and Curb Modifications Recommendation: Alternative 1, 2b, 3a, 4b, and 5.

1. Adopt a resolution accepting the Benton Street Bikeway Planning Study;
2b. Approve roadway concept Two Lanes, Buffered Bike Lanes, Parking on Both Sides for the 60-foot-wide section of Benton Street; 3a. Approve roadway concept Two Lanes, Buffered Bike Lanes, Center Turn Lane, Parking on Both Sides for the 64-foot-wide section of Benton Street;
4b. Approve roadway concept Bicycle Boulevard with Speed Humps/Cushions, Parking on Both Sides for the 38-foot-wide section and waive the requirements of the NTCP related to Daily Traffic Volumes, Roadway Type, Emergency and Transit Routes, and 70% and 100% neighborhood approval requirements for the installation of speed humps/cushions; and

5. Adopt a resolution establishing no parking zones as necessary on Benton Street between Dunford Way and Lincoln Street.

City Manager Grogan gave opening remarks and introduced Assistant Director of Public Works Liw who gave a Powerpoint presentation on the Benton Street Bikeway Planning Study.

Council comments and questions followed.

Assistant Public Works Director Liw addressed Council questions.

Public Comments: C. Roy Novak
Charles
Charlotte
Sylvester Ramirez
Gita
Betsy Megas
Sharlene Liu
Jeff Houston
Gavin Achtemeier
Tom
Diane Harrison
Public Speaker
Assistant Director of Public Works Liw responded to questions from the public.

A motion was made by Councilmember Hardy, seconded by
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Councilmember Jain, to: (1) adopt Resolution No. 24-9389 accepting the Benton Street Bikeway Planning Study; (2b) approve roadway concept Two Lanes, Buffered Bike Lanes, Parking on Both Sides for the 60-foot-wide section of Benton Street; (3a) approve roadway concept Two Lanes, Buffered Bike Lanes, Center Turn Lane, Parking on Both Sides for the 64-foot-wide section of Benton Street; (4b) approve roadway concept Bicycle Boulevard with Speed Humps/Cushions, Parking on Both Sides for the 38-foot-wide section and waive the requirements of the NTCP related to Daily Traffic Volumes, Roadway Type, Emergency and Transit Routes, and 70% and 100% neighborhood approval requirements for the installation of speed humps/cushions; and (5) adopt Resolution No. 24-9390 establishing no parking zones as necessary on Benton Street between Dunford Way and Lincoln Street.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor 6 -

Absent: 1 - Councilmember Park
REPORTS OF MEMBERS, SPECIAL COMMITTEES AND COUNCILMEMBER 030

REQUESTS
Vice Mayor Becker congratulated Kelly Cox and Albert Gonzalez for their election win.

CITY MANAGER/EXECUTIVE DIRECTOR REPORT
24-1098

ADJOURNMENT
Report from the City Manager on the Request to Provide Information Regarding State of the City
City Manager Grogan provided a Powerpoint presentation on the State of the City Address.

Mayor Gillmor gave some remarks on the State of the City Address.

The meeting was adjourn at 1:30 AM in memory of Michael De Young.

A motion was made by Council/Boardmember Hardy, seconded by Vice Mayor/Chair Becker, to adjourn the meeting.

Absent: 1 - Council/Boardmember Park
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24-1184 Adjournment of the November 12, 2024, Council & Authorities Concurrent Meeting
The next regular scheduled meeting is on Tuesday, November 19, 2024 in the City Hall Council Chambers.

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AB23 ANNOUNCEMENT: Members of the Santa Clara Stadium Authority, Sports and Open Space Authority and Housing Authority are entitled to receive $30 for each attended meeting.

Note: The City Council and its associated Authorities meet as separate agencies but in a concurrent manner. Actions taken should be considered actions of only the identified policy body.

LEGEND: City Council (CC); Stadium Authority (SA); Sports and Open Space Authority (SOSA); Housing Authority (HA); Successor Agency to the City of Santa Clara Redevelopment Agency (SARDA); Bayshore North Project Enhancement Authority (BNPEA); Public Facilities Financing Corporation (PFFC)
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

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City of Santa Clara
Meeting Minutes of the
Joint City Council and Authorities Concurrent &
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Draft
5:00 PM Hybrid Meeting
City Hall Council Chambers/Virtual
1500 Warburton Avenue
Santa Clara, CA 95050
11/19/2024
The City of Santa Clara is conducting City Council meetings in a hybrid manner (in-person and continues to have methods for the public to participate remotely).

How to Submit Written Public Comment Before City Council Meeting:

NOTE: Please note eComments and Emails received as public comment will not be read aloud during the meeting.

Agendas, Staff Reports and some associated documents for City Council items may be viewed on the Internet at https://santaclara.legistar.com/Calendar.aspx All public records relating to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at the Office of the City Clerk at Sana Clara City Hall, 1500 Warburton Avenue, Santa Clara, CA 95050 at the same time that the public records are distributed or made available to the legislative body. Any draft contracts, ordinances and resolutions posted on the Internet site or distributed in advance of the Council meeting may not be the final documents approved by the City Council. For the final document, you many contact the Office of the City Clerk at (408) 615-2220 or [email protected].
• Via Zoom:
o https://santaclaraca.zoom.us/j/99706759306
Meeting ID: 997-0675-9306
o Phone 1(669) 900-6833
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5:00 PM CLOSED SESSION
Call to Order in the Council Chambers
Mayor Gillmor called the Closed Session to order at 5:03 PM.

Confirmation of Quorum
Assistant City Clerk Pimentel confirmed a quorum.

1.A 24-1004 Conference with Labor Negotiators (CC)
Pursuant to Gov. Code § 54957.6
City representatives: Jovan D. Grogan, Nadine Nader, Aracely Azevedo, Marco Mercado, Charles Sakai, Glen R. Googins
Employee Organization(s):

Unit # 6 - AFSCME Local 101 (American Federal of State, County and Municipal Employees)

1.B 24-853 Conference with Real Property Negotiators (CC) - Mathews Property Pursuant to Gov. Code § 54956.8
Property: 525 Mathew Street, Santa Clara CA 95050 (APN 230-03-090) City Negotiator: Jovan D. Grogan, City Manage (or designee) Negotiating Parties: City of Santa Clara (Buyer) and Grief Inc. (Seller) Under Negotiation: Purchase of Real Property (price and terms of payment)

1.C 24-1171 Public Employee Performance Evaluation (CC) Pursuant to Government Code § 54957(b)(1)
(Continued from November 12, 2024)
Title: City Attorney
Public Comment
None.

Convene to Closed Session (Council Conference Room)
Mayor GiIllmor adjourned into Closed Session at 5:04 PM.

Councilmember Park joined the Closed Session at 5:20 PM.

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7:00 PM JOINT CITY COUNCIL/STADIUM AUTHORITY BOARD MEETING Call to Order in the Council Chambers
Mayor/Chair Gillmor called the regular meeting to order at 7:01 PM.

Pledge of Allegiance and Statement of Values
Council/Board recited the Pledge of Allegiance.

Council/Boardmember Park recited the Statement of Values.

Roll Call
Assistant City Clerk/Secretary Pimentel recited the AB23 announcement and State of Behavorial Standards.

Assistant City Clerk/Secretary Pimentel also noted that any registered Lobbyist speaking during the Public Meeting will need to identify themselves and whom they represent.

Present: 7 -

REPORTS OF ACTION TAKEN IN CLOSED SESSION MATTERS
City Attorney Googins reported there was no reportable action from Item

1.A regarding labor negotiations and Item 1.B. regarding real property negotiations.

Mayor Gillmor reported there was no reportable action from Item 1.C regarding public employee performance evaluation for City Attorney.

City Manager Grogan introduced the new Director of Community Development Afshan Hamid who provided some remarks.

CONTINUANCES/EXCEPTIONS/RECONSIDERATIONS
None.

SPECIAL ORDER OF BUSINESS
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2.A 24-568 Proclamation of November 2024 as Native American Heritage Month Mayor Gillmor, on behalf of the Council, proclaimed November 2024 as Native American Heritage Month.

Vernon Medicine Cloud (Inter Tribal Resource Director, Indian Health Center of Santa Clara Valley) accepted the proclamation and provided some remarks.

2.B 24-1063 Proclamation of Nurse Practitioner Week from November 10 to November 16, 2024
Mayor Gillmor, on behalf of the Council, proclaimed November 10, 2024 through November 16, 2024 as Nurse Practitioner Week.

Sue Houchen (Legislative Representative, Association of Nurse Practitioners) accepted the proclamation and provided some remarks.

CONSENT CALENDAR
Council/Boardmember Jain noted he will recuse from Item 3.J regarding the Mills Act contract at 811 Monroe Street due to a conflict of interest as he owns property near the subject property.

Mayor/Chair Gillmor noted that she will recuse from Item 3.I regarding the Mills Act contract at 1365 Main Street and Item 3.J regarding the Mills Act contract at 811 Monroe Street due to a conflict of interest as she owns property near the subject properties.

A motion was made by Vice Mayor/Chair Becker, seconded by Council/Boardmember Chahal, to approve the Consent Calendar (except Item 3.I and Item 3.J)

Aye: Council/Boardmember Kathy Watanabe, Council/Boardmember Raj Chahal, Council/Boardmember Karen Hardy, Council/Boardmember Kevin Park, Council/Boardmember Suds Jain, Vice Mayor/Chair Anthony Becker, and Mayor/Chair Lisa M. Gillmor
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3.A 24-1174 Action on the September 10, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes, September 24, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes, October 21, 2024 Special City Council Meeting Minutes, October 22, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting Minutes.

Recommendation: Approve the meeting minutes of:

September 10, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting,
September 24, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting,
October 21, 2024 Special City Council Meeting,
October 22, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to approve the meeting minutes of September 10, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting, September 24, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting, October 21, 2024 Special City Council Meeting, and October 22, 2024 Joint Council and Authorities Concurrent & Stadium Authority Meeting.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.B 24-21 Board, Commissions and Committee Minutes
Recommendation: Note and file the Minutes of:

Cultural Commission - October 7, 2024
Planning Commission - October 23, 2024
Board of Library Trustees - September 16, 2024
Board of Library Trustees - October 7, 2024
Bicycle and Pedestrian Advisory Committee - August 26, 2024 A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to note and file the minutes of Cultural Commission - October 7, 2024, Planning Commission - October 23, 2024, Board of Library Trustees - September 16, 2024, Board of Library Trustees - October 7, 2024, and Bicycle and Pedestrian Advisory Committee - August 26, 2024.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.C 24-1074 Action on City Bills and Claims Report for the period September 21, 2024 - October 18, 2024
Recommendation: Approve the list of Bills and Claims for September 21, 2024 - October 18, 2024.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to approve the list of Bills and Claims for September 21, 2024 - October 18, 2024.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.D 24-1057 Action Authorizing the City Manager to Negotiate and Execute Agreement(s) with Vendor(s) for the Purchase of Capacitor Banks with Reactor Switching Devices, Protection and Control Panels, Insulators, and Surge Arresters to be Funded by the Electric Utility Capital Fund Recommendation: 1. Subject to compliance with Chapter 2.105 of the City Code, review and approval as to form by the City Attorney, and appropriation of funds, authorize the City Manager or designee to negotiate and execute agreement(s) or purchase order(s) with vendors for Capacitor Banks with Reactive Switching Devices, Protection and Control Panels, Insulators, and Surge Arrestors, subject to a total maximum aggregate compensation amount of $11,000,000, plus a fifteen percent (15%) contingency ($1,650,000) for a maximum compensation amount of $12,650,000; and

2. Authorize the City Manager or designee to (a) take any actions as necessary to implement and administer the agreement(s) and/or purchase order(s), and (b) negotiate and execute amendments to the Agreement(s) for (i) design changes, (ii) any unanticipated issues, (iii) extensions of the term, or (iv) the purchase of additional Capacitor Banks with Reactive Switching Devices, Protection and Control Panels, Insulators and Surge Arresters, subject to the above maximum compensation limit and review and approval as to form by the City Attorney.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to (1) subject to compliance with Chapter

2.105 of the City Code, review and approval as to form by the City Attorney, and appropriation of funds, authorize the City Manager or designee to negotiate and execute agreement(s) or purchase order(s) with vendors for Capacitor Banks with Reactive Switching Devices, Protection and Control Panels, Insulators, and Surge Arrestors, subject to a total maximum aggregate compensation amount of $11,000,000, plus a fifteen percent (15%) contingency ($1,650,000) for a maximum compensation amount of $12,650,000; and (2) authorize the City Manager or designee to (a) take any actions as necessary to implement and administer the agreement(s) and/or purchase order(s), and (b) negotiate and execute amendments to the Agreement(s) for (i) design changes, (ii) any unanticipated issues, (iii) extensions of the term, or (iv) the purchase of additional Capacitor Banks with Reactive Switching Devices, Protection and Control Panels, Insulators and Surge Arresters, subject to the above maximum compensation limit and review and approval as to form by the City Attorney.

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Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.E 24-1112 Authorize the City Manager to execute the Side Letter Agreement between the City of Santa Clara and the Public Safety Non-Sworn Employees Association (Unit 10) that provides a pilot program for training pay for Senior Public Safety Dispatchers who are assigned to train newly hired lateral Public Safety Dispatchers.

Recommendation: Authorize the City Manager to execute the Side Letter Agreement between the City of Santa Clara and the Public Safety Non-Sworn Employees Association (Unit 10) that provides a pilot program for a training pay for Senior Public Safety who are assigned to train newly hired lateral Public Safety Dispatchers on the terms presented and in a final form approved by the City Attorney.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to authorize the City Manager to execute the Side Letter Agreement between the City of Santa Clara and the Public Safety Non Sworn Employees Association (Unit 10) that provides a pilot program for a training pay for Senior Public Safety who are assigned to train newly hired lateral Public Safety Dispatchers on the terms presented and in a final form approved by the City Attorney.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.F 24-1094 Action on the Services Agreement with Bay Pro for Landscaping Services at Water and Sewer Utilities facilities, with a Maximum Compensation Amount of $410,000
Recommendation: 1. Determine the proposed actions are exempt from CEQA pursuant to Section 15301 (Class 1 -Existing Facilities) and of Title 14 of the California Code of Regulations;

2. Authorize the City Manager or designee to negotiate and execute an agreement with Bay Pro (Agreement) to provide for landscaping services at water wells, storage tanks, and sewer pump/lift station sites for up to five years, with a maximum compensation of $410,000, subject to the approval as to form by the City Attorney; and

3. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement to (a) increase the maximum compensation amount by $350,000 for a revised maximum compensation amount of $410,000, (b) add or delete services consistent with the scope of services, and (c) exercise up to five one-year options to extend the term of the Agreement through June 30, 2030, subject to appropriation of funds and review and approval as to form by the City Attorney.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to (1) determine the proposed actions are exempt from CEQA pursuant to Section 15301 (Class 1 Existing Facilities) and of Title 14 of the California Code of Regulations; (2) authorize the City Manager or designee to negotiate and execute an agreement with Bay Pro (Agreement) to provide for landscaping services at water wells, storage tanks, and sewer pump/lift station sites for up to five years, with a maximum compensation of $410,000, subject to the approval as to form by the City Attorney; and (3) authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement to (a) increase the maximum compensation amount by $350,000 for a revised maximum compensation amount of $410,000, (b) add or delete services consistent with the scope of services; and (c) exercise up to five one year options to extend the term of the Agreement through June 30, 2030, subject to appropriation of funds and review and approval as to form by the City Attorney.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.G 24-1034 Action on an Agreement for Services with Grid Subject Matter Experts, LLC to Provide Silicon Valley Power With Consulting and Support Services for North American Reliability Corporation Critical Infrastructure Protection Compliance
Recommendation: 1. Authorize the City Manager or designee to execute an agreement with Grid Subject Matter Experts, LLC (Agreement) to provide North American Reliability Corporation (NERC) compliance services and Supervisory Control and Data Acquisition (SCADA) system support for a term starting on January 1, 2025 and ending on December 31, 2029, with a maximum compensation of $600,000, to be funded by Electric Utility Fund, subject to the approval as to form by the City Attorney; and

2. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement to (a) add or delete services consistent with the scope of services, (b) adjust rates by up to 3% annually, (c) extend the term for up to three additional years, (d) make other no cost or term extension amendments, and (e) increase the maximum compensation by up to $400,000 for a total maximum compensation of $1,000,000 over an eight-year period through December 31, 2032, subject to the appropriation of funds and approval as to form by the City Attorney.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to (1) authorize the City Manager or designee to execute an agreement with Grid Subject Matter Experts, LLC (Agreement) to provide North American Reliability Corporation (NERC) compliance services and Supervisory Control and Data Acquisition (SCADA) system support for a term starting on January 1, 2025 and ending on December 31, 2029, with a maximum compensation of $600,000, to be funded by Electric Utility Fund, subject to the approval as to form by the City Attorney; and (2) authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement to (a) add or delete services consistent with the scope of services, (b) adjust rates by up to 3% annually, (c) extend the term for up to three additional years, (d) make other no cost or term extension amendments; and (e) increase the maximum compensation by up to $400,000 for a total maximum compensation of $1,000,000 over an eight year period through December 31, 2032, subject to the appropriation of funds and approval as to form by the City Attorney.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.H 24-1038 Action on the Historic Preservation Agreement (Mills Act Contract) (PLN24-00423) for 1309 Alviso Street
Recommendation: 1. Determine that the project is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15331(Class 31 - Historical Resource Restoration / Rehabilitation); and

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to (1) determine that the project is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15331(Class 31 Historical Resource Restoration / Rehabilitation); and (2) authorize the City Manager to execute a Mills Act Contract in a final form approved by the City Attorney and adopt the 10 Year Restoration and Maintenance Plan associated with the property at 1309 Alviso Street.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.I 24-1041 Action on the Historic Preservation Agreement (Mills Act Contract) (PLN21-15422) for 1365 Main Street
Recommendation: 1. Determine that the project is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15331(Class 31 - Historical Resource Restoration / Rehabilitation); and

Mayor Gillmor recused herself from this item due to a conflict of interest as she owns property near the subject property.

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Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, and Vice Mayor Becker
6 -
Recused: 1 - Mayor Gillmor

3.J 24-1029 Action on the Historic Preservation Agreement (Mills Act Contract) (PLN24-00431) for 811 Monroe Street
Recommendation: 1. Determine that the project is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15331(Class 31 - Historical Resource Restoration / Rehabilitation); and

Councilmember Jain and Mayor Gillmor recused themselves from this item due to a conflict of interest as they own property near the subject property.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, and Vice Mayor Becker
5 -
Recused: 2 - Councilmember Jain, and Mayor Gillmor
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3.K 24-1067 Action on Authorizing the City Manager to Negotiate and Execute Amendment No. 1 to the Substation Agreement with Vantage Data Centers CA31, LLC for the Bowers Avenue Junction Substation Recommendation: 1. Authorize the City Manager or designee to negotiate and execute Amendment No. 1 to the Substation Agreement with Vantage Data Centers CA31, LLC for the Bowers Avenue Junction Substation on the terms presented, subject to the review and approval as to form by the City Attorney; and

2. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement to make any additional modifications that do not result in increased costs or total capacity exceeding 192.5 MVA, subject to review and approval as to form by the City Attorney.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to (1) authorize the City Manager or designee to negotiate and execute Amendment No. 1 to the Substation Agreement with Vantage Data Centers CA31, LLC for the Bowers Avenue Junction Substation on the terms presented, subject to the review and approval as to form by the City Attorney; and (2) authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement to make any additional modifications that do not result in increased costs or total capacity exceeding 192.5 MVA, subject to review and approval as to form by the City Attorney.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.L 23-373 Action to Adopt a Resolution Approving Updates to the City’s Water Service and Use Rules and Regulations
Recommendation: Adopt a Resolution approving updates to the City’s Water Service and Use Rules and Regulations.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to adopt Resolution No. 24-9391 approving updates to the City’s Water Service and Use Rules and Regulations.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.M 24-1111 Action to Adopt a Resolution of Local Support and Findings for the City’s Application for Transit-Oriented Communities Implementation Grants Recommendation: 1. Adopt a Resolution of Local Support for the City’s application for technical assistance grants related to Association of Bay Area Government’s Transit-Oriented Communities Policy; and

2. Authorize the City Manager to execute all documents related to applying for and accepting the technical assistance grants.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to (1) adopt Resolution No. 24-9392 of Local Support for the City’s application for technical assistance grants related to Association of Bay Area Government’s Transit Oriented Communities Policy; and (2) authorize the City Manager to execute all documents related to applying for and accepting the technical assistance grants.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.N 24-1121 Adopt a Resolution Approving and Adopting Updated Salary Plans for Various As-Needed and Classified Positions
Recommendation: Adopt a Resolution to approve and adopt the revised salary plans for various as-needed positions and various classified positions (effective December 22, 2024) to satisfy the requirements of California Code of Regulations Section 570.5.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to adopt Resolution No. 24-9393 to approve and adopt the revised salary plans for various as needed positions and various classified positions (effective December 22, 2024) to satisfy the requirements of California Code of Regulations Section 570.5.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.O 24-1071 Adopt a Resolution to Authorize the City Manager to Execute the 2025-2028 Memorandum of Understanding Between the City of Santa Clara and the Unclassified Miscellaneous Management (hereafter, “Unit 9”), Which Incorporates the Terms of the Tentative Agreement; Adopt a Resolution Updating the Unclassified Salary Plan; Approve the Creation and Modification of Unclassified Class Specifications; and Add 1.0 Assistant Fleet Manager and Delete 1.0 Public Works Supervisor Recommendation: 1. Authorize the City Manager to Execute the 2025-2028 Memorandum of Understanding Between the City of Santa Clara and the Unclassified Miscellaneous Management (hereafter, “Unit 9”), Which Incorporates the Terms of the Tentative Agreement;

2. Adopt a Resolution to approve the revised salary plans for unclassified positions to satisfy the requirements of California Code of Regulations Section 570.5, effective December 22, 2024;

3. Authorize the City Manager to negotiate and execute all necessary agreements and other documents, in final form(s) approved by the City Attorney, for the establishment and operation of a section 401(a) deferred compensation plan in accordance with the terms of the Unit 9 MOU;

4. Approve the Creation of the Assistant Fleet Manager Class Specification (Job Code 046);

5. Approve the consolidation of the Deputy Public Works Director (Job Code 176) and Deputy Parks and Recreation Director (Job Code 175) to a general Deputy Director (Job Code 176) Class Specification;

6. Approve Revisions to Senior Electric Division Manager (Job Code 173) Class Specification; and

7. Approve the addition of 1.0 Assistant Fleet Manager and deletion of 1.0 Public Works Supervisor in the Public Works Department.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to (1) authorize the City Manager to Execute the 2025-2028 Memorandum of Understanding Between the City of Santa Clara and the Unclassified Miscellaneous Management (hereafter, “Unit 9”), Which Incorporates the Terms of the Tentative Agreement; (2) adopt Resolution No. 24-9394 to approve the revised salary plans for unclassified positions to satisfy the requirements of California Code of Regulations Section 570.5, effective December 22, 2024; (3) authorize the City Manager to negotiate and execute all necessary agreements and other documents, in final form(s) approved by the City Attorney, for the establishment and operation of a section 401(a) deferred compensation plan in accordance with the terms of the Unit 9 MOU; (4) approve the Creation of the Assistant Fleet Manager Class Specification (Job Code 046); (5) approve the consolidation of the Deputy Public Works Director (Job City of Santa Clara Page 15 Printed on 11/25/2024
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Code 176) and Deputy Parks and Recreation Director (Job Code 175) to a general Deputy Director (Job Code 176) Class
Specification; (6) approve Revisions to Senior Electric Division Manager (Job Code 173) Class Specification; and (7) approve the addition of 1.0 Assistant Fleet Manager and deletion of 1.0 Public Works Supervisor in the Public Works Department.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.P 24-866 Action on a Resolution Approving the 2025 Board of Library Trustees Calendar of Meetings, and Setting the Number of Regular Board of Library Trustees Meetings
Recommendation: Adopt a Resolution setting the Board of Library Trustees regular meeting dates for the 2025 calendar year.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to adopt Resolution No. 24-9395 setting the Board of Library Trustees regular meeting dates for the 2025 calendar year.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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3.Q 24-1124 Appointment of Alternate Cultural Commission Member to the Santa Clara Station Area Plan Task Force (SATF)
Recommendation: Appoint Jonathan Marinaro to represent the Cultural Commission on the SATF.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to appoint Jonathan Marinaro to represent the Cultural Commission on the SATF.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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SANTA CLARA STADIUM AUTHORITY BOARD CONSENT CALENDAR

4. 24-1078 Action on Stadium Authority Bills and Claims for the Month of September 2024
Recommendation: Approve the list of Stadium Authority Bills and Claims for September 2024.

A motion was made by Vice Chair Becker, seconded by
Boardmember Chahal, to approve the list of Stadium Authority Bills and Claims for September 2024.

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Aye: Boardmember Watanabe, Boardmember Chahal, Boardmember Hardy, Boardmember Park, Boardmember Jain, Vice Chair Becker, and Chair Gillmor
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PUBLIC PRESENTATIONS
Craig Larsen spoke about preserving Modesto Ash Trees and cleaning up the San Tomas Aquino Creek.

Brian Darby spoke about lobbyist money affecting political campaigns.

Michele Ryan spoke about negative campaigning.

James Rowen spoke about the Civil Grand Jury.
24-1202 Public Presentations

CONSENT ITEMS PULLED FOR DISCUSSION
None.

PUBLIC HEARING/GENERAL BUSINESS
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5. 24-1105 PUBLIC HEARING: Action on an Environmental Impact Report and Mitigation Monitoring and Reporting Program, General Plan Amendment from High-Intensity Office/Research-and-Development to newly created Urban Center Mixed Use and Urban Center Residential Mixed Use land use designations, a Rezoning to PD - Planned Development, a Vesting Tentative Subdivision Map, and Introduction of an Ordinance to Approve a Development Agreement for a Mixed Use Project at 3005 Democracy Way comprised of up to 1,800 units (approximately 1.8 million square feet of residential uses), up to 3 million square feet of
office/research-and-development, approximately 100,000 square feet of retail, and approximately 10,000 square feet of childcare facilities (“Option A”), with a project alternative (“Option B”) that allows for the flexibility of up to an additional 800 dwelling units (for a total of up to 2,600 residential units) with a corresponding reduction in office/research and development square footage to 2.2 million square feet.

Recommendation: Option B

1. Adopt a resolution to certify the Final EIR prepared for the Mission Point Project (SCH # 2018072068) and adopt a Mitigation Monitoring and Reporting Program, CEQA Findings, and a Statement of Overriding Considerations, “Option B”.

2. Adopt a resolution to approve a General Plan Amendment to add new land use designations, Urban Center Mixed-Use (UCMU) and Urban Center Mission Point (UCMP), and to change the land use designation for the project site from High Intensity Office/Research & Development (HI O/R&D) to UCMU (on Areas C and D) and UCMP (on Areas A and B), “Option B”.

3. Adopt a resolution to approve the Planned Development Rezoning from HO-RD - High-Intensity Office/Research and Development to PD - Planned Development, with land use “Option B”.

4. Adopt a resolution to approve a Vesting Tentative Subdivision Map, “Option B”.

5. Waive first reading and introduce an ordinance to approve the Development Agreement, “Option B”.

Mayor Gillmor opened the public hearing.

City Manager Grogan made some opening remarks and introduced the new Director of Economic Development and Sustainability Reena Brilliot who provided a Powerpoint presentation on the Mission Point Project.

Council comments and questions followed.

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City Manager Grogan addressed Council questions.

Council comments and questions followed.

Ben Trunell (Principal, Gensler) provided a Powerpoint presentation on behalf of the applicant.

Council questions followed.

Public Comments: Brian Goldberg
Steve Kelly
Ali Sapirman
Jake Wilde
Mary Grizzle
Eric Crutchlow
Alex Shoor
Brian Darby
Jeff Houston
Anthony Montes
Manuel Salazar
Dylan O'Connell
Mike
Jason Morrow
Edward Strine
Anne Kepner
Jordan Grimes
Divya Dhar
Boshan Han (Vice President, Kylli) provided some remarks on behalf of the applicant.

A motion was made by Vice Mayor Becker, seconded by
Councilmemer Jain, to close the Public Hearing.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
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Council questions and comments followed.

Director of Economic Development and Sustainability Brilliot and City Manager Grogan addressed Council questions.

Council questions and comments followed.

David Doezema (Consultant, Keyser Marsten) and Patrick Maley (Consultant) addressed Council questions.

Council discussion ensued.

A motion was made by Councilmember Hardy, seconded by
Councilmember Chahal, to (1) adopt Resolution No. 24-9396 to certify the Final EIR prepared for the Mission Point Project (SCH # 2018072068) and adopt a Mitigation Monitoring and Reporting Program, CEQA Findings, and a Statement of Overriding
Considerations, “Option B”; (2) adopt Resolution No. 24-9397 to approve a General Plan Amendment to add new land use
designations, Urban Center Mixed Use (UCMU) and Urban Center Mission Point (UCMP), and to change the land use designation for the project site from High Intensity Office/Research & Development (HI O/R&D) to UCMU (on Areas C and D) and UCMP (on Areas A and B), “Option B”; (3) adopt Resolution No. 24-9398 to approve the Planned Development Rezoning from HO-RD - High Intensity Office/Research and Development to PD - Planned Development, with land use “Option B”; (4) adopt Resolution No. 24-9399 to approve a Vesting Tentative Subdivision Map, “Option B”; and (5) waive first reading and introduce Ordinance No. 2074 to approve the Development Agreement, “Option B”.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -
Mayor/Chair Gillmor called a recess at 10:05 PM and reconvened the meeting at 10:20 PM.

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6. 24-51 PUBLIC HEARING: Action on a Resolution Amending Rate Schedules for Electric Services for All Classes of Customers to Increase Electric Rates and Charges in Each Rate Schedule by 5.0% and Make Other Modifications, Effective January 1, 2025
Recommendation: Adopt a Resolution amending the City of Santa Clara Rate Schedules for Electric Utility Services to increase electric rates and charges in each rate schedule by 5.0% and make other modifications, effective January 1, 2025.

Mayor Gillmor opened the Public Hearing.

City Manager Grogan made some opening remarks and introduced Chief Electric Utility Officer Pineda who provided a Powerpoint presentation on amending rate schedules for electric service.

Council comments and questions followed.

Chief Electric Utility Officer Pineda and City Manager Grogan responded to Council questions.

Public Comment: None.

A motion was made by Vice Mayor Becker, seconded by
Councilmember Jain, to close the Public Hearing.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -
Council discussion ensued.

Chief Electric Utility Officer Pineda addressed Council questions.

A motion was made by Councilmember Jain, seconded by
Councilmember Hardy, to adopt Resolution No. 24-9400 amending the City of Santa Clara Rate Schedules for Electric Utility Services to increase electric rates and charges in each rate schedule by 5.0% and make other modifications, effective January 1, 2025.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, and Mayor Gillmor 6 -
Nay: 1 - Vice Mayor Becker
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Joint City Council and Authorities Concurrent &
Santa Clara Stadium Authority Board Meeting
Meeting Minutes 11/19/2024

7. 24-1022 PUBLIC HEARING: Action on a Vesting Tentative Parcel Map at 4590 Patrick Henry Drive for the Creation of Two Lots
Recommendation: Adopt a resolution to approve the Vesting Tentative Parcel Map to subdivide the existing parcel for the creation of two lots at the property located at 4590 Patrick Henry Drive.

Mayor Gillmor opened the Public Hearing.

City Manager Grogan made some opening remarks and introduced Director of Economic Development and Sustainability Brilliot who provided a Powerpoint presentation on 4590 Patrick Henry Drive Vesting Tentative Parcel map.

Katia Kamangar (Principal, Kamangar Consulting) noted that she is a lobbyist and provided a powerpoint presentation on behalf of the applicant.

Public Comment: Edward Strine
A motion was made by Vice Mayor Becker, seconded by
Councilmember Chahal, to close the Public Hearing.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -
Council comments and questions followed.

Economic Development and Sustainability Director Brilliot addressed Council questions.

A motion was made by Councilmember Watanabe, seconded by Vice Mayor Becker, to adopt Resolution No. 24-9401 approving the Vesting Tentative Parcel Map to subdivide the existing parcel for the creation of two lots at the property located at 4590 Patrick Henry Drive.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Councilmember Jain, Vice Mayor Becker, and Mayor Gillmor
7 -
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Santa Clara Stadium Authority Board Meeting
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REPORTS OF MEMBERS, SPECIAL COMMITTEES AND COUNCILMEMBER 030

REQUESTS
Councilmember Park noted that he attended the National League of Cities Conference in Tampa last week.

Councilmember Watanabe noted that she attended a press conference at Congregation Sinai in San Jose yesterday.

CITY MANAGER/EXECUTIVE DIRECTOR REPORT

ADJOURNMENT
None.

The meeting was adjourned at 11:12 PM.

A motion was made by Vice Mayor/Chair Becker, seconded by Council/Boardmember Chahal, to adjourn the meeting.

Aye: Council/Boardmember Kathy Watanabe, Council/Boardmember Raj Chahal, Council/Boardmember Karen Hardy, Council/Boardmember Kevin Park, Council/Boardmember Suds Jain, Vice Mayor/Chair Anthony Becker, and Mayor/Chair Lisa M. Gillmor
7 -
The next scheduled Special Stadium Authority meeting is on Monday, November 25, 2024 in the City Hall Council Chambers.

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Joint City Council and Authorities Concurrent &
Santa Clara Stadium Authority Board Meeting
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Meeting
Meeting Minutes

AB23 ANNOUNCEMENT: Members of the Santa Clara Stadium Authority, Sports and Open Space Authority and Housing Authority are entitled to receive $30 for each attended meeting.

Note: The City Council and its associated Authorities meet as separate agencies but in a concurrent manner. Actions taken should be considered actions of only the identified policy body.

LEGEND: City Council (CC); Stadium Authority (SA); Sports and Open Space Authority (SOSA); Housing Authority (HA); Successor Agency to the City of Santa Clara Redevelopment Agency (SARDA); Bayshore North Project Enhancement Authority (BNPEA); Public Facilities Financing Corporation (PFFC)
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

City of Santa Clara Page 24 Printed on 11/25/2024
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
24-22 Agenda Date: 12/3/2024

REPORT TO COUNCIL

SUBJECT
Board, Commissions and Committee Minutes

COUNCIL PILLAR
Enhance Community Engagement and Transparency

RECOMMENDATION
Note and file the Minutes of:

Youth Commission - October 8, 2024
Audit Committee - September 17, 2024
City of Santa Clara Page 1 of 1 Printed on 11/27/2024
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City of Santa Clara
Meeting Minutes
Youth Commission
Draft
6:00 PM Youth & Teen Center
2446 Cabrillo Avenue
Santa Clara, CA 95051
10/08/2024

CALL TO ORDER AND ROLL CALL
This meeting was called to order by Gayle Ichiho at 6:04 p.m.

Commissioner Allysa Domensino, Commissioner Simren Garg, Commissioner Namita Gaidhani, Commissioner Srikha Gopisetti, Commissioner Julianna Arias Hernandez, Commissioner Neha Israni, Commissioner Maryam Ismail, Commissioner Rebecca Kunze, Commissioner Kira Liang, Commissioner Malia Martin,
Commissioner Samaira Mehta, Commissioner Hiranya Parekh, Commissioner Brian Rong, and Commissioner Samarth Suresh Present 14 -
Absent 1 - Commissioner Ryan Kim
A motion was made by Commissioner Suresh, seconded by
Commissioner Parekh to excuse Commissioner Kim from the October 8, 2024 meeting. The motion was carried by the following votes:

Aye: Commissioner Domensino, Commissioner Garg, Commissioner Gaidhani, Commissioner Gopisetti, Commissioner Arias Hernandez, Commissioner Israni, Commissioner Ismail, Commissioner Kunze, Commissioner Liang, Commissioner Martin, Commissioner Mehta, Commissioner Parekh, Commissioner Rong, and Commissioner Suresh
14 -

Absent: 1 - Commissioner Kim

CONSENT CALENDAR

1. 24-965 Review and Approve the Youth Commission Minutes of September 10, 2024 Meeting
A motion was made by Commissioner Suresh, seconded by
Commissioner Parekh that this item be recommended for approval.

The motion was carried by the following votes:

City of Santa Clara Page 1 Printed on 10/17/2024
Youth Commission Meeting Minutes 10/08/2024

PUBLIC PRESENTATIONS
none

GENERAL BUSINESS

2. 24-778 Elect a Chair and Vice Chair for the FY 2024/25 Youth Commission Term A motion was made by Commissioner Suresh, seconded by
Commissioner Parekh, to elect Commissioner Liang for the Chair position, Commissioner Martin for Vice Chair position,
Commissioner Gaidhani for Secretary position, and Commissioner Garg for the Commission Outreach position. The motion was carried by the following votes:

3. 24-822 Santa Clara Vision Zero Project Introduction and Discussion Received presentation on the Santa Clara Vision Zero project.

City Staff, Senior Civil Engineer, Ralph Garcia presented the Santa Clara Vision Zero project. Youth Commissioners provided feedback on challenges or concerns about locations in Santa Clara that need improvement.

4. 24-964 Adopt Youth Commission Calendar of Meetings for 2025 A motion was made by Commissioner Suresh, seconded by
Commissioner Martin, that this item be recommended for approval.

The motion was carried by the following votes:

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Youth Commission Meeting Minutes 10/08/2024

5. 24-966 Discussion and Possible Action on Youth Commission FY 2024/25 Work Plan & Goals
Commissioners prioritized three themes for the FY2024/25 Work Plan:

Public Outreach and Education, Community Building with Santa Clara residents, and Youth Empowerment. The first committee meeting dates will be set for November 12th. Each committee will discuss specific goals and actvities to promote their respective theme.

A motion was made by Commissioner Gaidhani, seconded by Commissioner Parekh that this item be recommended for approval.

The motion was carried by the following votes:

STAFF REPORT
Gayle Ichiho, Parks & Recreation Supervisor discussed the upcoming Children's Halloween Party on Saturday, October 26 at Central Park. The Youth & Teen Center is looking for high school volunteers to support the event. She also shared information about the online Parks & Recreation Master Plan survey and explained that this is a strategic document that will set forth a framework for the City’s parks and recreation system. It will improve, protect, and expand parks, facilities, and recreational services now and in the future.

COMMISSIONERS REPORT
Commissioner Israni reported that the Youth Commission participated in a stakeholder's engagement session for the Library Facilities Master plan on October 1, 2024.

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Youth Commission Meeting Minutes 10/08/2024

ADJOURNMENT
A motion was made by Commissioner Suresh, seconded by
Commissioner Parekh that this meeting be adjourned at 7:34 p.m.

The motion was carried by the following votes:

MEETING DISCLOSURES
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Youth Commission Meeting Minutes 10/08/2024
The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

City of Santa Clara Page 5 Printed on 10/17/2024
City of Santa Clara
Meeting Minutes
Audit Committee
Draft
9:00 AM CMO Sparacino Conference Room
1500 Warburton Avenue
Santa Clara, CA 95050
09/17/2024
The City of Santa Clara is conducting the Audit Committee meetings in a hybrid manner (in-person and continues to have methods for the public to participate remotely).

Join from a PC, Mac, iPad, iPhone or Android device:

Please click this URL to join: https://santaclaraca.zoom.us/j/99199624617 Webinar ID: 991 9962 4617
Or join by phone:

US: +1 669 900 6833

CALL TO ORDER AND ROLL CALL
Chair Watanabe called the meeting to order at 9:04 AM.

Member Park was not present when the meeting was called to order, however, arrived late at 9:08 AM.

Present 3 - Chair Kathy Watanabe, Member Suds Jain, and Member Kevin Park

CONSENT CALENDAR
A motion was made by Member Jain, seconded by Chair Watanabe, to approve the Consent Calendar.

Aye: 2 - Chair Watanabe, and Member Jain

Absent: 1 - Member Park

1.A 24-886 Action on Audit Committee Minutes of February 28, 2024 Recommendation: Approve the Audit Committee minutes of February 28, 2024.

A motion was made by Member Jain, seconded by Chair Watanabe, to approve the Audit Committee Minutes of February 28, 2024.

Aye: 2 - Chair Watanabe, and Member Jain

Absent: 1 - Member Park
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1.B 24-919 Action on Audit Committee Minutes of March 21, 2024 Recommendation: Approve the Audit Committee minutes of March 21, 2024.

A motion was made by Member Jain, seconded by Chair Watanabe, to approve the Audit Committee Minutes of March 21, 2024.

Aye: 2 - Chair Watanabe, and Member Jain

Absent: 1 - Member Park

1.C 24-887 Action on Audit Committee Minutes of September 3, 2024 Recommendation: Approve the Audit Committee minutes of September 3, 2024.

A motion was made by Member Jain, seconded by Chair Watanabe, to approve the Audit Committee Minutes of September 3, 2024.

Aye: 2 - Chair Watanabe, and Member Jain

Absent: 1 - Member Park

PUBLIC PRESENTATIONS
Member of the public, Christine, expressed concern regarding the review of internal controls, the validation process, and accessing prior billing and payment data/reports for utilities.

GENERAL BUSINESS

2. 24-888 Overview of Santa Clara Stadium Authority Fiscal Year 2023/24 Annual Financial Statements and Audit Results
Recommendation: Accept the Santa Clara Stadium Authority Fiscal Year 2023/24 Annual Financial Statements and recommend that the Stadium Authority note and file the report at the September 24, 2024 Joint Council and Authorities Concurrent and Stadium Authority meeting.

Treasurer, Kenn Lee, gave a brief overview of the discussion at the September 3, 2024 meeting and noted minor changes.

A motion was made by Member Jain, seconded by Member Park, to accept the Santa Clara Stadium Authority Fiscal Year 2023/24 Annual Financial Statements and recommend that the Stadium Authority note and file the report at the September 24, 2024 Joint Council and Authorities Concurrent and Stadium Authority meeting.

Aye: 3 - Chair Watanabe, Member Jain, and Member Park
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3. 24-895 Action to Accept Report of Whistleblower Hotline Activity for Fiscal Year 2023-24
Recommendation: Accept the report on the Whistleblower Hotline activity for Fiscal Year 2023-24.

Audit Manager, David Noce, gave an overview of the report and staff addressed Committee Members' questions.

A motion was made by Member Jain, seconded by Member Park to accept the report on the Whistleblower Hotline activity for Fiscal Year 2023-24.

Aye: 3 - Chair Watanabe, Member Jain, and Member Park

4. 24-917 Status Update on the Proposed 2024-2025 Audit Work Plan Recommendation: Note and file staff update.

Audit Manager, David Noce, gave an overview of the work plan and staff addressed Committee Members' questions.

A motion was made by Member Jain, seconded by Member Park, to note and file the staff update.

Aye: 3 - Chair Watanabe, Member Jain, and Member Park

ADJOURNMENT
Chair Watanabe adjourned the meeting at 10:14 AM.

Future Audit Committee Meetings will be scheduled at a later date.

MEETING DISCLOSURES
City of Santa Clara Page 3 Printed on 11/14/2024
Audit Committee Meeting Minutes 09/17/2024
The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

City of Santa Clara Page 4 Printed on 11/14/2024
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
24-1075 Agenda Date: 12/3/2024

REPORT TO COUNCIL

SUBJECT
Action on Monthly Financial Status and Investment Reports for September 2024 and Approve the Related Budget Amendments

COUNCIL PILLAR
Enhance Community Engagement and Transparency

BACKGROUND
In compliance with the Charter of the City of Santa Clara and the adopted Investment Policy, the monthly financial report and monthly investment report for September 2024 are submitted for your information. The financial review as of September 30, 2024 provides a year-to-date financial update to the City Council for fiscal year 2024/25. The analysis of the revenues collected and all expenditures measures the level of adherence to the established resource allocation plan and allows the City to monitor and project revenues and expenditures throughout the year.

The Adopted Budget incorporates the estimated revenues and planned expenditures for all funds.

The attached Financial Status Report provides the budget to actual revenue and expenditure summaries for the General Fund, Special Revenue Funds and Enterprise Operating Funds, as well as expenditure summary for Capital Improvement Funds and Fund Reserve Balances. Any significant variances are explained in the report.

In accordance with City Council Policy 051 - Donations to the City, included in these reports are monthly activity and annual summary of donations received by department. Although the requirement of the policy is to report quarterly, the City will include this information monthly in the financial status report.

DISCUSSION
Monthly Financial Status Report (Attachment 1)
The attached Monthly Financial Status Report summarizes the City’s financial performance as of September 30, 2024 (Attachment 1). This report provided financial analysis for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds.

Monthly Financial Status Report shows that General Fund revenues (excluding transfers) at 11.6% of the budget through September 2024. The revenue in some categories received through September 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.

While it is very early in the fiscal year and limited data is available, General Fund revenues are currently tracking within estimated levels. As shown in Monthly Financial Status Report, General City of Santa Clara Page 1 of 4 Printed on 11/27/2024
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24-1075 Agenda Date: 12/3/2024
Fund departmental expenditures were at 24.2% through September 2024 and are tracking within budgeted levels.

As shown in Monthly Financial Status Report, total revenues for Enterprise Funds (Electric, Water, Sewer, Cemetery, Solid Waste, and Water Recycling) were at 17.6% of the budget through September 30, 2024, while total expenses were at 20%.

In September, donations of $2,782 were received, bringing total donations to $8,890.

Economic news remains positive. The UCLA Anderson Forecast predicts strong GDP growth in the third quarter 2024, followed by lower growth in the fourth quarter 2024. Strong growth is then predicted for 2025 and 2026. The Conference Board points to ongoing resilience in the US economy despite looming uncertainties and persistent shocks.

On a national level, the unemployment rate changed little from 4.2% in August 2024 to 4.1% in September 2024. The number of unemployed persons also decreased from 7.1 million in August 2024 to 6.8 million in September 2024. In the advance estimate for the third quarter 2024, the Gross Domestic Product (GDP) increased at an annual rate of 2.8%, following a GDP increase of 3.0% in the second quarter.

The California unemployment rate remained unchanged at 5.3% between August and September 2024, but was up from 5.0% in September 2023. The unadjusted unemployment rate in the San José -Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 4.1% in September 2024, down from a revised 4.6% in August 2024, but above the September 2023 level of 3.9%.

Staff will continue to closely monitor the General Fund revenues and the City’s overall financial performance as the fiscal year progresses.

Monthly Investment Report (Attachment 2)
All securities held by the City of Santa Clara as of September 30, 2024, were in compliance with the City’s Investment Policy Statement regarding current market strategy and long-term goals and objectives. All securities held are rated “A” or higher by two nationally recognized rating agencies.

There is adequate cash flow and maturity of investments to meet the City’s needs for the next six months.

The City’s investment strategy for September 2024 was to invest funds not required to meet current obligations in securities listed in the prevailing Investment Policy Statement, with maturities not to exceed five years from the date of purchase. This strategy ensures safety of the City’s funds, provides liquidity to meet the City’s cash needs, and with a reasonable portfolio return of 3.53% in September.

The Monthly Investment Report also now reflects a Statement of Transactions, following the Investment Inventory, in accordance with California Municipal Treasurers Association investment policy guidelines.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(4) of Title 14 of the California Code City of Santa Clara Page 2 of 4 Printed on 11/27/2024
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24-1075 Agenda Date: 12/3/2024
of Regulations in that it is a fiscal activity that does not involve the commitment to a specific project which may result in a potentially significant physical impact on the environment.

FISCAL IMPACT
From time to time, adjustments to the budget are required to reflect new information, align budgets with actual revenues and expenses, and correct for inadvertent errors. The recommended budget adjustments are described in Attachment 3 and summarized below:
· General Fund - allocates funding from the Technology Fee Reserve to the Non-Departmental budget to provide funding to migrate parcel data and documents from the City’s legacy permit information system to Laserfiche. An action is also included to recognize and appropriate wildland reimbursements for the Fire Department.
· Fire Operating Grant Trust Fund - recognizes and appropriates County of Santa Clara Emergency Medical Services grant funding to the Fire Department. · Public Donations Fund - recognizes and appropriates donations for Senior Center wellness programs and the Reed & Grant Sports Park under the Parks and Recreation Department. · Storm Drain Capital Fund - allocates funding from available fund balance to the Storm Drain System Improvements project to address storm drain system capacity deficiencies.

COORDINATION
This report has been coordinated with the City Attorney’s Office.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] mailto:[email protected] or at the public information desk at any City of Santa Clara public library.

RECOMMENDATION

1. Note and file the Monthly Financial Status Reports and Monthly Investment Reports for September 2024 as presented; and

2. Approve the FY 2024/25 Budget Amendments in the following funds (as detailed in the Fiscal Section of the staff report and Attachment 3 to the staff report):
a. In the General Fund, with a net impact of $148,785;
b. In the Fire Operating Grant Trust Fund, with a net impact of $31,125; c. In the Public Donations Fund, with a net impact of $3,132; and d. In the Storm Drain Capital Fund, with a net impact of $0.

Reviewed by: Kenn Lee, Director of Finance
Approved by: Jovan D. Grogan, City Manager

ATTACHMENTS

1. Monthly Financial Status Report - September 2024

2. Monthly Investment Report - September 2024
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3. FY 2024/25 Budget Amendments
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_____________________________________________________________________

MONTHLY FINANCIAL STATUS REPORT
September 2024
City of
Santa Clara
The Center of What's Possible
1 City of Santa Clara
Financial Status Report as of September 30, 2024
This report summarizes the City’s financial performance for the month ended September 30, 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
Economic news remains positive. At the national level, the UCLA Anderson Forecast predicts strong GDP growth in the third quarter 2024 estimated at 2.5% on a seasonally adjusted annual rate, followed by lower growth in the fourth quarter 2024. Banner growth is then projected for 2025 and 2026 driven in part by growth in residential development. For California, the economists for the UCLA Forecast predict sub-par growth in 2024, followed by two years of growth rates higher than the U.S., led by technology and aerospace1
.

According to The Conference Board, “US economic data continue to surprise to the upside, revealing ongoing resilience despite looming uncertainties and persistent shocks. We now expect real GDP to expand by 2.6 percent year-over-year in 2024, an upward revision from 2.4 percent. Some moderate growth at yearend and early next year may constrain annual 2025 growth to 1.7 percent despite expectations of stronger quarterly annualized growth over the course of that year. Slowing inflation and a healthy labor market should support measured interest rate cuts over the course of the next year, lowering the Fed Funds rate target range to 3.00-3.25 percent in 2025.”2 On a national level, the unemployment rate changed little from 4.2% to 4.1% between August and September 2024. In September, the number of unemployed persons totaled 6.8 million, a decrease from 7.1 million in August.
3 1 https://www.anderson.ucla.edu/news-and-events/press-releases/sub-par-growth-for-california-followed-by-banneryears-for-state-and-us-gdps 2 https:///www.conference-board.org/research/us-forecast, The Conference Board Economic Forecast for the US Economy, October 23, 2024
3 https://www.bls.gov/news.release/pdf/empsit.pdf
Chart 1. Unemployment rate, seasonally adjusted,
September 2022 - September 2024
Percent

5.5 5.0

4.5 4.0

3.5 3.0

2.5 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Chart 2. Nonfarm payroll employment over-the-month change, seasonally adjusted, September 2022 - September 2024
Thousands
600
500
400
300
200
100
0 -100
Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 2 City of Santa Clara
Financial Status Report as of September 30, 2024
In the third quarter 2024 advance estimate, the Gross Domestic Product (GDP) increased by

2.8%, following a GDP increase of 3.0% in the second quarter. The increase in real GDP primarily reflected increases in consumer spending, exports, and federal government spending. 4 At the state level, the California unemployment rate remained unchanged at 5.3% between August and September 2024. This rate is higher compared to the 5.0% rate in September 2023. Over the past year, California employers have added 265,300 nonfarm jobs.
5 The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 4.1% in September 2024, down from a revised 4.6% in August 2024, but above the September 2023 estimate of 3.9%. Between September 2023 and September 2024, employment in this region increase by 3,700 jobs, or 0.3%. The largest increases were in private education and health services (up 9,600 jobs), professional and business services (up 4,800 jobs), and leisure and hospitality (up 2,300 jobs). Notable employment reductions were in information (down 6,700 jobs) and manufacturing (down 5,400 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 2024/25 was $310.7 million. The amended budget for revenues and expenditures was adjusted to $317.9 million to reflect carryover encumbrances from fiscal year 2023/24 and various budget amendments approved by the City Council through September 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.
4 https://www.bea.gov/sites/default/files/2024-10/tech3q24-adv.pdf 5 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-september-2024/ 6 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf Real GDP: Percent change from preceding quarter
8 l
-2
Q4 Q1 Q2 Q3 Q4
2020 2021
U.S. Bureau of Economic Analysis
Ql Q2 Q3 Q4 Ql
2022
Q2 Q3
2023
Q4 Ql Q2 Q3
2024
Seasonally adjusted annual rates
3 City of Santa Clara
Financial Status Report as of September 30, 2024
General Fund Revenues
As of September 30, 2024, $34.2 million or 11.6% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $22.1 million have occurred as budgeted.

This low collection level through September is largely due to the timing of payments. In some categories, the revenues received in September 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
9/30/2024
Percentage
Received
Actual Through
9/30/2023
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax $ 62,900,000 $ 62,900,000 $ 4,714,363 7.50% $ 5,013,575 $ (299,212) -5.97% Property Tax 94,391,000 94,391,000 123,179 0.13% 184,513 (61,334) -33.24% Transient Occupancy Tax 22,850,000 22,850,000 2,049,094 8.97% 1,319,673 729,421 55.27% Other Taxes 6,950,000 6,950,000 493,594 7.10% 667,689 (174,095) -26.07% Total Taxes 187,091,000 187,091,000 7,380,230 3.94% 7,185,450 194,780 2.71%

LICENSES & PERMITS
Business Licenses 6,000,000 6,000,000 2,179,914 36.33% 1,029,725 1,150,189 111.70% Fire Operation Permits 2,010,000 2,010,000 591,820 29.44% 340,223 251,597 73.95% Miscellaneous Permits 55,000 55,000 137,851 250.64% 98,442 39,409 40.03% Total Licenses & Permits 8,065,000 8,065,000 2,909,585 36.08% 1,468,390 1,441,195 98.15% FINES & PENALTIES 1,452,000 1,452,000 291,043 20.04% 604,657 (313,614) -51.87% INTERGOVERNMENTAL 970,000 970,000 366,762 37.81% 9,654 357,108 3699.07% CHARGES FOR SERVICES 30,829,954 30,829,954 9,277,938 30.09% 7,270,797 2,007,140 27.61% SILICON VALLEY POWER TRANSFER 34,500,000 34,500,000 8,866,275 25.70% 8,227,562 638,713 7.76%

USE OF MONEY & PROPERTY
Interest 6,212,000 6,212,000 (486,666) -7.83% (677,143) 190,477 -28.13% Rent 13,028,187 13,028,187 3,265,867 25.07% 3,157,866 108,001 3.42% Total Use of Money & Property 19,240,187 19,240,187 2,779,201 14.44% 2,480,723 298,478 12.03% MISCELLANEOUS REVENUES 215,550 215,550 267,609 124.15% 79,362 188,247 237.20%

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 13,895,239 13,895,239 100.00% 8,012,113 5,883,126 73.43% 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 22,087,429 22,087,429 100.00% 14,971,840 7,115,589 47.53%

STADIUM OPERATION
Charges for Services 11,705,481 12,023,104 2,058,397 17.12% 561,121 1,497,276 266.84% Rent and Licensing 1,472,000 1,472,000 - 0.00% - - N/A
Total Stadium Operation 13,177,481 13,495,104 2,058,397 15.25% 561,121 1,497,276 266.84% TOTAL GENERAL FUND $ 310,698,189 $ 317,946,224 $ 56,284,469 17.70% $ 42,859,556 $ 13,424,913 31.32% (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
4 City of Santa Clara
Financial Status Report as of September 30, 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 September 30, 2024, $4.7 million has been collected, which is 6.0% lower than prior year collection levels. Given the timing of payments, the sales tax payments reflected are for the month of July 2024.

Property Tax: $0.1 million in property tax receipts were received in September 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 at $95.9 million, 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 current TOT rate is 12.5% and will increase to 13.5% effective January 1, 2025.

Through September 30, 2024, approximately $2.0 million was received, which reflects a 55.3% increase when compared through the same period last fiscal year.

Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected approximately $0.5 million through September, which is 27% lower than last fiscal year’s collection levels. Receipts through September 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. Revenue collections are tracking above par with receipts totaling $2.9 million, or 36.1% of the $8.1 million budget. This reflects strong growth in all categories with the largest collections in the business license tax category. Effective FY 2023/24, the City implemented a new Business License Tax methodology which is reflected in the receipts recorded this fiscal year totaling $2.2 million, or 36.3% of the budget. This collection level is above the prior year level of $1.0 million due, in part, to the timing of payments; last year, collections at the beginning of the year were delayed with the implementation of the new tax structure.

Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue collected in this category through September was $0.3 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 September 30, 2024, approximately $0.4 million has been collected, or 37.8% of the $1.0 million 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 September, collections totaled approximately $9.3 million or 30.1% of the budget. This reflects a 27.6% increase compared to last year’s collections, primarily due to higher receipts from engineering fees, Emergency Medical Services (EMS) transport fees, and interdepartmental charges. 5 City of Santa Clara
Financial Status Report as of September 30, 2024
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.

Use of Money & Property: Includes realized investment income and rental income. Through September, $2.8 million has been collected, compared to $2.5 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 September, collections total $0.3 million, compared to $79,362 collected in the prior year.

Stadium Operation: Through September, approximately $2.1 million has been collected through charges for services.
6 City of Santa Clara
Financial Status Report as of September 30, 2024
General Fund Expenditures
As of September 30, 2024, $91.1 million or 28.7% of the General Fund operating budget had been expended, which is higher than prior year expenditure levels. Excluding transfers, expenditures totaled $73.1 million, or 24.4% 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 September.

Adopted Budget
Amended
Budget
Actual Through
9/30/2024
Percentage
Used
Actual Through
9/30/2023
$
Change From
Prior Year
Percentage
Change

GENERAL GOVERNMENT
Non-Departmental $ 17,622,136 $ 17,841,022 $ 5,094,715 28.56% $ 2,499,761 $ 2,594,954 103.81% City Council 1,196,923 1,196,923 305,664 25.54% 282,965 22,699 8.02% City Clerk 2,102,267 2,104,267 567,840 26.99% 344,072 223,768 65.04% City Manager 8,222,051 9,030,316 1,186,788 13.14% 852,846 333,942 39.16% City Attorney 3,357,661 3,440,037 730,921 21.25% 630,789 100,132 15.87% Human Resources 4,845,256 5,019,594 927,839 18.48% 785,034 142,805 18.19% Finance 21,008,682 21,937,208 5,459,590 24.89% 4,176,852 1,282,738 30.71% Total General Government 58,354,976 60,569,367 14,273,357 23.57% 9,572,319 4,701,038 49.11% PUBLIC WORKS 26,347,463 28,132,690 6,197,081 22.03% 5,702,914 494,167 8.67% COMMUNITY DEVELOPMENT 5,575,313 5,636,381 1,237,071 21.95% 1,277,915 (40,844) -3.20% PARKS AND RECREATION 23,172,047 23,931,989 5,347,557 22.34% 5,306,810 40,747 0.77%

PUBLIC SAFETY
Fire 66,292,191 66,954,133 17,833,066 26.63% 16,697,448 1,135,618 6.80% Police 92,074,298 92,973,019 22,240,589 23.92% 20,669,417 1,571,172 7.60% Total Public Safety 158,366,489 159,927,152 40,073,655 25.06% 37,366,865 2,706,790 7.24% LIBRARY 11,732,505 12,212,058 3,046,574 24.95% 2,498,581 547,993 21.93% DEPARTMENTAL TOTAL 283,548,793 290,409,637 70,175,295 24.16% 61,725,404 8,449,891 13.69%

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 9,498,441 2,918,720 30.73% 3,239,740 (321,020) -9.91% TOTAL GENERAL FUND $ 310,698,189 $ 317,946,224 $ 91,132,161 28.66% $ 76,610,304 $ 14,521,857 18.96% Function

CITY OF SANTA CLARA

GENERAL FUND

EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2024/25 PY EXPENDITURES COMPARISON
7 City of Santa Clara
Financial Status Report as of September 30, 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 September 30, 2024, expenditures totaled $5.1 million, or

28.6% of the budget. These expenditures are above the par level of 25%, and significantly higher than prior year levels. This increase is due to the timing of the insurance payment; last fiscal year, these expenditures were not reflected until later in the fiscal year.

City Attorney: Actual expenditures through September totaled approximately $0.7 million, which is

21.3% of the budget, which is below par. Spending is significantly higher than the total expenditures through the same time last fiscal year by 15.9%. This increase is a result of higher spend primarily in the salaries and benefits categories and the outside legal services category.

City Clerk: Through September 30, 2024, actual expenditures were tracking at $0.6 million or approximately 27% of the budget. This expenditure level reflects a 65% increase compared to last fiscal year due to one-time Granicus costs that are paid every other year.

City Council: Through September, expenditures were at 25.5% of budget, which is slightly above par.

Compared to the same period through last fiscal year, this reflects an increase in expenditures due to higher salaries and benefits spending.

City Manager: The actual expenditures through September totaled $1.2 million, or 13.1% of the budget, which is below par for this time of the year. Expenditures are approximately 39% higher compared with the spending level through the same period last fiscal year. The increase is attributable to higher spend in the salaries and benefits and advertising and miscellaneous services and supplies 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 September, departmental expenditures for the Planning and Housing and Community Services divisions totaled $1.2 million, or 22% of the budget, which is below par of 25%. This expenditure level is consistent with prior year spend.

Finance Department: Through September, the Department’s expenditures totaled $5.5 million, or

24.9% of the budget, which is at par. This expenditure level was approximately 30.7% higher than through the same period last year. The current year spend reflects higher salaries and benefits and contractual services costs, primarily related to PeopleSoft and the Questica Budget System.

Fire Department: Through September 30, 2024, actual expenditures totaled $17.8 million, or 26.6% of the budget, which is above par. These expenditures also reflect a 6.8% increase from last fiscal year due to higher expenditures across the salaries and benefits, interfund services, and non-personnel categories. Overtime expenditures are tracking over budget at 155% due, in part, to overtime 8 City of Santa Clara
Financial Status Report as of September 30, 2024
expenditures related to mutual aid deployment efforts. These costs are reimbursable, and budget actions will continue to be brought forward for City Council approval to recognize the reimbursements and adjust the Department overtime budget throughout the fiscal year as reimbursements are received.

Excluding mutual aid-related costs, the overtime budget is 73.8% expended through September.

Overtime is used to backfill for shift absences and vacant shift positions to maintain daily minimum staffing. It is anticipated that overtime expenditures will exceed the overtime budget as the current absence rate exceeds the estimate used in the development of the budget.

Absences are significantly above historical levels at 20,648 hours through September. This level, however, is down 7% from the 22,299 hours through September of the prior fiscal year. Absences that are trending high are in the areas of workers’ compensation/injury leave, Family Medical Leave Act leave, sick leave, and vacation usage. 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 September, the compensatory time payouts total $472,099, which is above historical levels but 40% below the payouts of $787,792 experienced through September of last fiscal year. The Department will continue to monitor the overtime expenditures throughout the fiscal year and bring forth budget recommendations, as needed.

Library Department: Through September, actual expenditures totaled $3.0 million, or 25% of the budget, which is at par, and 21.9% higher than expenditure levels last fiscal year. The higher spending is primarily in the salaries and benefits and maintenance categories.

Parks and Recreation Department: Through September 30, 2024, actual expenditures totaled $5.3 million, or 22.3% of the budget, which is slightly below par, but consistent with prior year spend.

Police Department: Expenditures through September are tracking at expected levels at $22.2 million, or 23.9% of the budget; this is approximately 7.6% higher than prior year spending. The higher spend is primarily in the salaries and benefits and contractual services categories.

Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures totaled $2.9 million through September, which is lower than the prior year. This is primarily due to fewer ticketed Non-NFL events being held in the current year, resulting in lower as needed and overtime spend. The Stadium hosted four ticketed Non-NFL events and three NFL games through September. 9 City of Santa Clara
Financial Status Report as of September 30, 2024
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of September 30, 2024. The amended budget reflects carryover encumbrances from fiscal year 2023/24 and budget amendments approved by the City Council through September 2024.

Revenues totaled approximately $7.4 million, while expenditures totaled approximately $5.6 million through the end of September. While revenue is tracking above par, expenditures are tracking slightly below par of 25%. In the Building Development Services Fee Fund and Fire Development Services Fee Fund, development-related fees are tracking above budget and the prior year. In the City Affordable Housing Fund and Housing Successor Agency Fund, higher interest earnings have been collected when compared to prior year levels.

Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 9/302024 Received 9/30/2023 Prior Year Change Building Development Services Fee
Fund
$ 16,164,000 $ 16,164,000 $ 5,055,368 31.28% 4,024,759 $ $ 1,030,609 25.61% City Affordable Housing Fund 1,168,177 1,168,177 208,904 17.88% 50,231 158,673 315.89% Fire Development Services Fee
Fund
3,277,500 3,277,500 1,353,308 41.29% 877,639 475,669 54.20% Housing and Urban Development 2,532,068 3,375,068 385,632 11.43% 382,263 3,369 0.88% Housing Authority Fund 252,496 252,496 14,749 5.84% 63,247 (48,498) -76.68% Housing Successor Fund 1,306,326 1,306,326 335,132 25.65% 170,252 164,880 96.84% TOTAL $ 24,700,567 $ 25,543,567 $ 7,353,093 28.79% 5,568,391 $ $ 1,784,702 32.05% Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 9/302024 Used 9/30/2023 Prior Year Change Building Development Services Fee
Fund
$ 15,044,148 $ 15,852,488 $ 3,921,073 24.73% 3,632,981 $ $ 288,092 7.93% City Affordable Housing Fund 1,593,647 1,983,423 235,782 11.89% 277,139 (41,357) -14.92% Fire Development Services Fee
Fund
3,387,922 3,387,922 909,483 26.84% 767,376 142,107 18.52% Housing and Urban Development 2,532,068 4,071,407 350,021 8.60% 399,273 (49,252) -12.34% Housing Authority Fund 468,931 511,389 41,549 8.12% 42,189 (640) -1.52% Housing Successor Fund 902,579 1,012,590 184,747 18.24% 257,090 (72,343) -28.14% TOTAL $ 23,929,295 $ 26,819,219 $ 5,642,655 21.04% 5,376,048 $ $ 266,607 4.96%

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
10 City of Santa Clara
Financial Status Report as of September 30, 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 September 2024. As of September 30, 2024, the capital fund revenue totaled $2.2 million.

REVENUE - FISCAL YEAR 2024/25
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/302024 Used Parks & Recreation $ - $ 3,349,489 $ 3,349,489 $ 423,344 12.64% Related Santa Clara Developer 795,344 - 795,344 - 0.00% Storm Drain 1,454,000 3,000,000 4,454,000 368,282 8.27% Streets & Highways 5,951,458 22,490,903 28,442,361 1,364,912 4.80% Tasman East Specific Infrastructure
Improvement Fund
3,734,932 - 3,734,932 53,421 1.43%
TOTAL $ 11,935,734 $ 28,840,392 $ 40,776,126 $ 2,209,959 5.42%

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 September 2024. As of September 30, 2024, capital fund expenditures totaled $10 million, or 6% of the amended budget, well below par of 25%.

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 are included as part of the Budgetary Year-End Report for FY 2023/24.
11 City of Santa Clara
Financial Status Report as of September 30, 2024
EXPENDITURES - FISCAL YEAR 2024/25
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/302024 Used Fire $ 1,473,700 1,247,874 $ 2,721,574 $ 247,074 9.08%
General Gov't - Other 2,390,820 9,127,697 11,518,517 365,492 3.17% Library 471,848 248,407 720,255 8,601 1.19%
Parks & Recreation 7,654,966 25,525,570 33,180,536 1,430,884 4.31% Public Buildings 1,792,207 5,442,248 7,234,455 353,617 4.89% Related Santa Clara Developer 795,344 393,992 1,189,336 82,911 6.97% Storm Drain 2,161,450 7,135,999 9,297,449 338,666 3.64% Streets & Highways 21,295,073 77,468,474 98,763,547 7,144,166 7.23% Tasman East Specific Infrastructure
Improvement Fund
1,432,193 1,433,994 2,866,187 4,928 0.17%
TOTAL $ 39,467,601 $ 128,024,255 $ 167,491,856 $ 9,976,339 5.96%

CITY OF SANTA CLARA

SUMMARY OF EXPENDITURES

GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
12 City of Santa Clara
Financial Status Report as of September 30, 2024
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of September 30, 2024. Overall, revenues and expenditures are tracking below budgeted levels.

Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 9/302024 Received 9/30/2023 Prior Year Change Cemetery Fund $ 750,000 $ 750,000 $ 124,806 16.64% 112,497 $ $ 12,309 10.94% Electric Utility Fund 893,397,959 893,397,959 148,886,032 16.67% 144,823,775 4,062,257 2.80% Sewer Utility Fund 46,989,803 46,989,803 10,499,589 22.34% 8,947,880 1,551,709 17.34% Solid Waste Utility Fund 41,561,372 41,561,372 8,059,470 19.39% 7,740,949 318,521 4.11% Water Recycling Fund 8,507,338 8,507,338 2,260,300 26.57% 2,038,776 221,524 10.87% Water Utility Fund 64,096,935 64,096,935 15,745,533 24.57% 13,272,180 2,473,353 18.64% TOTAL REVENUE $ 1,055,303,407 $ 1,055,303,407 $ 185,575,730 17.59% 176,936,057 $ $ 8,639,673 4.88% Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 9/302024 Used 9/30/2023 Prior Year Change Cemetery Fund $ 1,628,800 $ 1,628,800 $ 276,838 17.00% 294,071 $ $ (17,233) -5.86% Electric Utility Fund 649,513,582 667,335,619 129,516,954 19.41% 138,554,412 (9,037,458) -6.52% Sewer Utility Fund 38,762,083 39,278,049 10,066,852 25.63% 9,342,530 724,322 7.75% Solid Waste Utility Fund 40,775,942 43,928,485 9,619,028 21.90% 7,603,240 2,015,788 26.51% Water Recycling Fund 9,307,289 9,332,389 2,007,432 21.51% 343,078 1,664,354 485.12% Water Utility Fund 57,614,177 58,830,207 12,715,673 21.61% 8,756,636 3,959,037 45.21% TOTAL - Operating
Appropriations
$ 797,601,873 $ 820,333,549 $ 164,202,777 20.02% 164,893,967 $ $ (691,190) -0.42%

CITY OF SANTA CLARA

ENTERPRISE OPERATING FUNDS

REVENUE AND EXPENSES - OVERVIEW AND COMPARISON BY FUND
REVENUE - FISCAL YEAR 2024/25 PRIOR YEAR REVENUE COMPARISON EXPENSES - FISCAL YEAR 2024/25 PRIOR YEAR EXPENSE COMPARISON While revenues are tracking slightly higher than prior years, expenditures are consistent with 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. Additionally, in the Water Recycling Fund, a payment for the 4th quarter of last fiscal year was recorded in the current fiscal year due to the timing of receipt of the invoice. A budget adjustment to carryover the budget from FY 2023/24 to FY 2024/25 is included in the FY 2023/24 Budgetary Year-End Report for that payment.

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. 13 City of Santa Clara
Financial Status Report as of September 30, 2024
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actual revenue through September 30, 2024, totaled $5.4 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 $14.7 million, or 3% 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 are included in the FY 2023/24 Budgetary Year-End Report for that payment.

Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/302024 Used Convention Center Capital
Fund
$ 550,000 $ - $ 550,000 $ - 0.00%
Electric Utility Fund 21,659,000 26,213,951 47,872,951 5,101,505 10.66% Sewer Utility Fund - - - 247,661 N/A
Solid Waste Utility Fund 258,000 - 258,000 2,258 0.88%
Street Lighting (1) - - - 837 N/A
Water Recycling Fund - - - - N/A
Water Utility Fund - - - 30,684 N/A
TOTAL - Revenue $ 22,467,000 $ 26,213,951 $ 48,680,951 $ 5,382,945 11.06% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/302024 Used Cemetery Fund $ 4,689 $ 17,835 $ 22,524 $ 1,172 5.20%
Convention Center Capital
Fund
2,700,000 1,726,973 4,426,973 144,926 3.27%
Electric Utility Fund 217,332,515 198,533,383 415,865,898 9,444,478 2.27% Sewer Utility Fund 20,325,410 28,269,938 48,595,348 3,187,049 6.56% Solid Waste Utility Fund 788,000 119,873 907,873 140,329 15.46% Street Lighting (1) 5,365,000 3,405,462 8,770,462 32,749 0.37% Water Recycling Fund 400,000 - 400,000 238 0.06%
Water Utility Fund 5,795,000 6,127,745 11,922,745 1,764,264 14.80%

TOTAL - CIP
Appropriations
$ 252,710,613 $ 238,201,210 $ 490,911,823 $ 14,715,205 3.00%

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 14 City of Santa Clara
Financial Status Report as of September 30, 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.
15 City of Santa Clara
Financial Status Report as of September 30, 2024
DETAIL OF SELECTED FUND RESERVE BALANCES:

GENERAL

FUND ELECTRIC WATER
Budget Stabilization Reserve $ 53,131,576
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 $ 81,870,458 $ 261,000,000 $ 303,090

CITY OF SANTA CLARA

RESERVE BALANCES
September 30, 2024
Donations to the City of Santa Clara
Donations received by department during the month of September 2024 and for fiscal year 2024/25 are shown in the table below.

Department Sep-24
Fiscal Year
2024/25
Year To Date Designated Use
City Manager's Office 0 2 Help Your Neighbor
Electric Utility 25 25 Neighborhood Solar
Parks & Recreation 0 500 Case Management
Parks & Recreation 632 632 Reed/Grant Park Soccer Equipment Parks & Recreation 1,250 2,781 Roberta Jones Jr. Theatre Parks & Recreation 875 4,950 Wade Brummal
TOTALS $ 2,782 $ 8,890
_____________________________________________________________________

MONTHLY INVESTMENT REPORT
September 2024
City of
Santa Clara
The Center of What's Possible
City of Santa Clara
Monthly Investment Report

TABLE OF CONTENTS
Page #
1 Summary of Investment Portfolio 1
2 Summary of Investments 5
3 Investment Maturity Distribution Schedule 6
4 Attachment A: Investment Inventory With Market Value 7 5 Attachment B: Statement of Transactions 12
1 CITY OF SANTA CLARA

SUMMARY OF INVESTMENT PORTFOLIO
All securities held by the City of Santa Clara as of September 30, 2024 were in compliance with the City's Investment Policy Statement regarding current market strategy and long-term goals and objectives. All securities held are rated A or higher by two nationally recognized rating agencies. There is adequate cash flow and maturity of investments to meet the City’s needs for the next six months.

The following table provides the breakdown of the total portfolio among the City, the Sports and Open Space Authority (SOSA), and the Housing Authority (HA) as of September 30, 2024.

On September 30, 2024 the cost value and market value of the City's unrestricted pooled investment portfolio were $1,178,344,227 and $1,185,890,329 respectively.

Investment Strategy and Market Update
The Federal Open Market Committee (FOMC) lowered the target range for the federal funds rate by 50 basis points (bps) to 4.75% -

5.00% at its September meeting. The half percentage point cut was well-digested by markets despite expectations being split between 25 and 50 bps. Federal Reserve Chair Powell described the risks to achieving the Fed’s employment and inflation goals as now being “roughly in balance.”
The August PCE reading of 2.2% year-over-year hit its lowest level since February 2021, continuing the trajectory towards the Fed’s 2% inflation target.

Nonfarm payrolls came in well above expectations and showed 254,000 net new jobs created in September, the strongest print since March. The July and August prints were revised up by a combined 72,000. Additionally, the unemployment rate ticked back down to 4.1%, from 4.2% the prior month. The strength of the labor market continues to serve as a tailwind to the consumer.

U.S. Treasury yields continued their descent in September as markets digested the Fed’s first cut. Overnight and short-term maturities (less than three months) declined in lockstep with the 50 basis point cut. Meanwhile, the yield on the 2-year U.S. Treasury note declined 1.4% from its six-month high in April.

Yields on benchmark 2-, 5-, and 10-year U.S. Treasuries ended the month at 3.64%, 3.56%, and 3.78%, respectively, representing changes of -28, -14, and -12 bps for the month, respectively.

COST VALUE PERCENTAGE
City $1,177,137,583 99.90%
SOSA 15,223 0.00%
HA 1,191,421 0.10%
Unrestricted $1,178,344,227 100.00%
Restricted Bond Proceeds 2,379,646
Total Investments $1,180,723,873
2 The City's investment strategy for September 2024 was to invest funds not required to meet current obligations, in securities listed in the prevailing Investment Policy Statement, with maturities not to exceed five years from date of purchase. This strategy ensures safety of the City’s funds, provides liquidity to meet the City’s cash needs, and earns a reasonable portfolio return. PFM Asset Management LLC began actively managing the City’s securities portfolio on September 1, 2020.

As of September 30, 2024, 51.26% of the City’s portfolio consists of U.S. Treasury Notes, 18.58% consists of investment grade Corporate Notes, 12.05% consists of California Asset Management Program (CAMP), 6.69% consists of Federal Agencies, 5.12% consists of investment grade Asset-Back Securities, 4.87% consists of investment grade Mortgage-Backed Securities, 0.64% consists of Negotiable Certificates of Deposit, and 0.51% consists of Local Agency Investment Fund (LAIF). In addition, City bond proceeds are invested in separate funds and are not included in the calculation of the City’s portfolio yield.

U.S. Treasury Notes

51.26%
Federal Agency Notes

6.69%
Corporate Notes

18.58%
Asset-Backed Securities

5.12%
Negotiable Certificates of
Deposit

0.64%
Mortgage-Backed Securities

4.87%
Money Market Fund

0.08%
Local Agency Investment
Fund (LAIF)

0.51%
California Asset Management
Program (CAMP)

12.05%
Mutual Fund - Traffic Mitigation
Bond Proceeds

0.20%
3 The City’s securities portfolio is benchmarked against the ICE BAML 1-5 US Treasury Index.

3.53%

4.44%

4.59%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%
Securities Portfolio Yield at Cost vs Index 24-Month Average of Yield at Market Securities Portfolio (yield at cost)
City's Benchmark Index (24-month rolling average market yield) BofA 1-5 AAA-A Corp & Gov't Index (24-month rolling average market yield) 4 The following table summarizes the investment yields other information of the City’s investment portfolio components, along with comparable-maturity market indices. Also shown are the monthly interest income and aggregate year-to-date income.

Current Month
9/30/2024
Investment Yield
Liquidity Portfolio1

5.23%
LAIF average monthly yield 4.58%
Securities Portfolio2

3.53%
ICE BAML 1-5 US Treasury Index (24-month rolling average market yield) 4.44% ICE BAML 1-5 AAA-A US Corporate & Government Index (24-month rolling average market yield) 4.59%
City Portfolio (Liquidity + Securities) 3.74%
Investment Total Return*
Securities Portfolio 0.88%
ICE BAML 1-5 US Treasury Index 0.89%
ICE BAML 1-5 AAA-A US Corporate & Government Index 0.90% Average Maturity of Investments (in years)
Liquidity Portfolio1

0.08 Securities Portfolio2

2.95 City Portfolio (Liquidity + Securities) 2.57
ICE BAML 1-5 US Treasury Index 2.77
ICE BAML 1-5 AAA-A US Corporate & Government Index 2.78 Cash Interest Income Current Month3
$ 2,978,044
Cash Interest Income Fiscal Year-To-Date3
$ 10,668,827

1. Consists of CAMP Pool, LAIF, Dreyfus Traffic Mitigation Fund, & Principal Sweep Account

2. Core long term portfolio managed by PFM Asset Management

3. Cash basis
* Total rate of return including earnings, distributions, and capital appreciation/depreciation of all portfolio assets 5 CITY OF SANTA CLARA
SUMMARY OF INVESTMENTS SEPTEMBER 30, 2024
PER
COST % OF INVESTMENT

INVESTMENT TYPE VALUE PORTFOLIO POLICY
U.S. Treasury Notes 605,199,828 51.26% No Limit
Federal Agency Notes 79,100,843 6.69% 80%
Corporate Notes 219,427,649 18.58% 25%
Asset-Backed Securities 60,420,874 5.12% 10%
Negotiable Certificates of Deposit 7,500,000 0.64% 30%
Mortgage-Backed Securities 57,459,337 4.87% 15%
Money Market Fund 988,565 0.08% 10% Per Fund
Local Agency Investment Fund (LAIF) 6,001,483 0.51% $75 M California Asset Management Program (CAMP) 142,245,648 12.05% No Limit Mutual Fund - Traffic Mitigation Bond Proceeds 2,379,646 0.20% 10% Per Fund TOTAL INVESTMENTS $ 1,180,723,873 100.00%
6 INVESTMENT MATURITY DISTRIBUTION
AS OF SEPTEMBER 30, 2024

UNRESTRICTED POOLED PORTFOLIO

MATURITY NUMBER OF
(IN MONTHS) COST VALUE INVESTMENTS DISTRIBUTION
DEMAND (a) $ 139,235,696 (a) 3 11.82%
0 TO 6 73,130,104 14 6.21%
7 TO 12 91,233,039 14 7.74%
13 TO 18 66,960,386 16 5.68%
19 TO 24 61,198,305 11 5.19%
25 TO 30 60,893,433 13 5.17%
31 TO 36 111,250,729 15 9.44%
37 TO 42 164,121,582 25 13.93%
43 TO 48 152,478,718 27 12.94%
49 TO 54 123,558,824 21 10.49%
55 TO 60 134,283,411 18 11.39%
TOTAL $ 1,178,344,227 177 100.00%
Average Maturity of Unrestricted Pool: 2.57 Years
(a) $20 million is earmarked for the City's Electric Utility power-trading. 0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%

INVESTMENT MATURITY DISTRIBUTION

UNRESTRICTED POOLED PORTFOLIO
AS OF SEPTEMBER 30, 2024
City of Santa Clara Monthly Report
9/30/2024
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LUNITED STATES TREASURY 1/31/2020 1.375% 1/31/2025 912828Z52 5,000,000.00 AA+ 4/22/2020 5,238,671.88 0.37% 4,948,000.00 -290,671.88 UNITED STATES TREASURY 1/31/2020 1.375% 1/31/2025 912828Z52 1,950,000.00 AA+ 5/7/2021 2,013,146.48 0.50% 1,929,720.00 -83,426.48UNITED STATES TREASURY 2/28/2018 2.750% 2/28/2025 9128283Z1 6,200,000.00 AA+ 3/6/2020 6,850,757.82 0.61% 6,158,088.00 -692,669.82 UNITED STATES TREASURY 8/31/2020 0.250% 8/31/2025 91282CAJ0 4,120,000.00 AA+ 8/2/2021 4,075,581.25 0.52% 3,980,455.60 -95,125.65UNITED STATES TREASURY 11/30/2020 0.375% 11/30/2025 91282CAZ4 4,450,000.00 AA+ 11/4/2021 4,327,625.00 1.07% 4,274,269.50 -53,355.50UNITED STATES TREASURY 12/31/2020 0.375% 12/31/2025 91282CBC4 3,820,000.00 AA+ 5/3/2021 3,751,956.25 0.76% 3,659,903.80 -92,052.45 UNITED STATES TREASURY 1/31/2019 2.625% 1/31/2026 9128286A3 10,490,000.00 AA+ 10/5/2023 9,948,699.61 5.01% 10,331,391.20 382,691.59UNITED STATES TREASURY 3/1/2021 0.500% 2/28/2026 91282CBQ3 5,175,000.00 AA+ 12/7/2021 5,067,214.15 1.15% 4,942,953.00 -124,261.15 UNITED STATES TREASURY 3/1/2021 0.500% 2/28/2026 91282CBQ3 3,575,000.00 AA+ 8/31/2021 3,542,880.86 0.70% 3,414,697.00 -128,183.86UNITED STATES TREASURY 6/1/2021 0.750% 5/31/2026 91282CCF6 9,250,000.00 AA+ 6/8/2022 8,477,480.47 2.99% 8,810,255.00 332,774.53 UNITED STATES TREASURY 6/1/2021 0.750% 5/31/2026 91282CCF6 5,860,000.00 AA+ 3/21/2022 5,520,989.84 2.20% 5,581,415.60 60,425.76UNITED STATES TREASURY 8/15/2016 1.500% 8/15/2026 9128282A7 5,350,000.00 AA+ 8/15/2022 5,033,388.67 3.08% 5,141,457.00 108,068.33UNITED STATES TREASURY 9/15/2023 4.625% 9/15/2026 91282CHY0 10,000,000.00 AA+ 10/3/2023 9,930,468.75 4.88% 10,179,300.00 248,831.25UNITED STATES TREASURY 9/30/2021 0.875% 9/30/2026 91282CCZ2 5,585,000.00 AA+ 4/5/2022 5,176,815.04 2.61% 5,290,502.95 113,687.91UNITED STATES TREASURY 11/1/2021 1.125% 10/31/2026 91282CDG3 5,700,000.00 AA+ 8/8/2022 5,267,601.56 3.05% 5,413,917.00 146,315.44UNITED STATES TREASURY 11/15/2016 2.000% 11/15/2026 912828U24 8,840,000.00 AA+ 6/8/2022 8,472,242.19 3.01% 8,546,512.00 74,269.81 UNITED STATES TREASURY 12/31/2021 1.250% 12/31/2026 91282CDQ1 5,340,000.00 AA+ 4/14/2022 5,000,617.97 2.69% 5,070,703.80 70,085.83 UNITED STATES TREASURY 2/15/2017 2.250% 2/15/2027 912828V98 7,910,000.00 AA+ 7/7/2022 7,705,452.34 2.85% 7,665,897.40 -39,554.94UNITED STATES TREASURY 2/15/2017 2.250% 2/15/2027 912828V98 5,400,000.00 AA+ 6/13/2022 5,159,109.38 3.29% 5,233,356.00 74,246.62 UNITED STATES TREASURY 2/15/2017 2.250% 2/15/2027 912828V98 2,100,000.00 AA+ 4/20/2022 2,040,691.41 2.88% 2,035,194.00 -5,497.41 UNITED STATES TREASURY 3/31/2022 2.500% 3/31/2027 91282CEF4 940,000.00 AA+ 11/30/2022 883,159.38 4.03% 915,842.00 32,682.62 UNITED STATES TREASURY 4/30/2020 0.500% 4/30/2027 912828ZN3 7,000,000.00 AA+ 8/3/2022 6,262,812.50 2.89% 6,471,990.00 209,177.50 UNITED STATES TREASURY 5/15/2017 2.375% 5/15/2027 912828X88 5,400,000.00 AA+ 8/8/2022 5,248,546.88 3.01% 5,236,110.00 -12,436.88UNITED STATES TREASURY 5/15/2024 4.500% 5/15/2027 91282CKR1 2,200,000.00 AA+ 9/17/2024 2,257,492.19 3.46% 2,249,764.00 -7,728.19UNITED STATES TREASURY 6/17/2024 4.625% 6/15/2027 91282CKV2 27,665,000.00 AA+ 9/27/2024 28,426,868.16 3.55% 28,411,678.35 -15,189.81UNITED STATES TREASURY 6/30/2020 0.500% 6/30/2027 912828ZV5 5,675,000.00 AA+ 8/15/2022 5,034,789.06 3.00% 5,221,000.00 186,210.94 UNITED STATES TREASURY 8/1/2022 2.750% 7/31/2027 91282CFB2 10,800,000.00 AA+ 9/14/2022 10,392,046.88 3.60% 10,559,160.00 167,113.12UNITED STATES TREASURY 8/15/1997 6.375% 8/15/2027 912810FA1 9,390,000.00 AA+ 10/5/2023 9,913,052.34 4.78% 10,121,387.10 208,334.76 UNITED STATES TREASURY 8/15/2017 2.250% 8/15/2027 9128282R0 11,115,000.00 AA+ 9/6/2022 10,537,975.20 3.40% 10,714,304.25 176,329.05UNITED STATES TREASURY 9/30/2022 4.125% 9/30/2027 91282CFM8 3,785,000.00 AA+ 11/3/2022 3,760,308.79 4.27% 3,845,787.10 85,478.31 UNITED STATES TREASURY 11/2/2020 0.500% 10/31/2027 91282CAU5 21,480,000.00 AA+ 1/6/2023 18,292,401.56 3.91% 19,565,272.80 1,272,871.24UNITED STATES TREASURY 10/31/2022 4.125% 10/31/2027 91282CFU0 16,115,000.00 AA+ 9/17/2024 16,442,335.94 3.43% 16,369,939.30 -72,396.64UNITED STATES TREASURY 10/31/2022 4.125% 10/31/2027 91282CFU0 4,750,000.00 AA+ 1/31/2023 4,833,310.55 3.72% 4,825,145.00 -8,165.55UNITED STATES TREASURY 10/31/2022 4.125% 10/31/2027 91282CFU0 5,100,000.00 AA+ 12/13/2022 5,165,343.75 3.83% 5,180,682.00 15,338.25UNITED STATES TREASURY 10/31/2022 4.125% 10/31/2027 91282CFU0 10,930,000.00 AA+ 12/8/2022 11,081,995.31 3.81% 11,102,912.60 20,917.29UNITED STATES TREASURY 11/17/1997 6.125% 11/15/2027 912810FB9 3,100,000.00 AA+ 7/24/2024 3,288,058.59 4.14% 3,335,290.00 47,231.41UNITED STATES TREASURY 11/30/2022 3.875% 11/30/2027 91282CFZ9 7,130,000.00 AA+ 9/5/2024 7,182,917.97 3.63% 7,192,387.50 9,469.53UNITED STATES TREASURY 1/3/2023 3.875% 12/31/2027 91282CGC9 8,255,000.00 AA+ 1/31/2023 8,320,459.57 3.70% 8,333,670.15 13,210.58UNITED STATES TREASURY 1/3/2023 3.875% 12/31/2027 91282CGC9 7,325,000.00 AA+ 2/8/2023 7,333,583.98 3.85% 7,394,807.25 61,223.27UNITED STATES TREASURY 1/3/2023 3.875% 12/31/2027 91282CGC9 4,850,000.00 AA+ 2/2/2023 4,906,078.13 3.62% 4,896,220.50 -9,857.63UNITED STATES TREASURY 1/3/2023 3.875% 12/31/2027 91282CGC9 7,175,000.00 AA+ 9/27/2024 7,247,030.27 3.54% 7,243,377.75 -3,652.52UNITED STATES TREASURY 2/1/2021 0.750% 1/31/2028 91282CBJ9 5,815,000.00 AA+ 2/7/2023 5,009,758.79 3.83% 5,302,117.00 292,358.21 UNITED STATES TREASURY 1/31/2023 3.500% 1/31/2028 91282CGH8 7,505,000.00 AA+ 5/16/2023 7,508,517.97 3.49% 7,487,963.65 -20,554.32 UNITED STATES TREASURY 2/28/2023 4.000% 2/29/2028 91282CGP0 8,080,000.00 AA+ 1/26/2024 8,063,587.50 4.05% 8,189,807.20 126,219.70UNITED STATES TREASURY 2/28/2023 4.000% 2/29/2028 91282CGP0 7,360,000.00 AA+ 5/16/2023 7,532,500.00 3.46% 7,460,022.40 -72,477.60UNITED STATES TREASURY 2/28/2023 4.000% 2/29/2028 91282CGP0 6,600,000.00 AA+ 3/7/2023 6,526,781.25 4.25% 6,689,694.00 162,912.75 10/17/2024 5:23 PM 1 of 5
Attachment A
City of Santa Clara Monthly Report
9/30/2024
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LUNITED STATES TREASURY 3/31/2021 1.250% 3/31/2028 91282CBS9 5,820,000.00 AA+ 5/9/2023 5,236,408.59 3.50% 5,378,262.00 141,853.41UNITED STATES TREASURY 3/31/2021 1.250% 3/31/2028 91282CBS9 5,470,000.00 AA+ 5/10/2023 4,912,530.08 3.54% 5,054,827.00 142,296.92UNITED STATES TREASURY 3/31/2023 3.625% 3/31/2028 91282CGT2 5,765,000.00 AA+ 5/4/2023 5,816,569.73 3.42% 5,776,702.95 -39,866.78 UNITED STATES TREASURY 3/31/2023 3.625% 3/31/2028 91282CGT2 5,030,000.00 AA+ 5/2/2023 5,023,712.50 3.65% 5,040,210.90 16,498.40UNITED STATES TREASURY 5/1/2023 3.500% 4/30/2028 91282CHA2 5,075,000.00 AA+ 5/2/2023 5,042,488.28 3.64% 5,062,515.50 20,027.22UNITED STATES TREASURY 5/31/2023 3.625% 5/31/2028 91282CHE4 11,735,000.00 AA+ 6/5/2023 11,695,577.73 3.70% 11,753,306.60 57,728.87UNITED STATES TREASURY 5/31/2023 3.625% 5/31/2028 91282CHE4 8,285,000.00 AA+ 1/26/2024 8,149,074.22 4.04% 8,297,924.60 148,850.38UNITED STATES TREASURY 6/30/2023 4.000% 6/30/2028 91282CHK0 11,300,000.00 AA+ 7/10/2023 11,117,699.22 4.36% 11,469,048.00 351,348.78UNITED STATES TREASURY 6/30/2023 4.000% 6/30/2028 91282CHK0 1,700,000.00 AA+ 7/3/2023 1,687,183.59 4.17% 1,725,432.00 38,248.41UNITED STATES TREASURY 7/31/2023 4.125% 7/31/2028 91282CHQ7 4,950,000.00 AA+ 8/2/2023 4,921,962.89 4.25% 5,046,079.50 124,116.61UNITED STATES TREASURY 8/31/2023 4.375% 8/31/2028 91282CHX2 7,940,000.00 AA+ 1/26/2024 8,054,137.50 4.03% 8,169,227.80 115,090.30UNITED STATES TREASURY 8/31/2023 4.375% 8/31/2028 91282CHX2 1,735,000.00 AA+ 8/31/2023 1,742,726.17 4.28% 1,785,089.45 42,363.28UNITED STATES TREASURY 10/31/2023 4.875% 10/31/2028 91282CJF9 5,900,000.00 AA+ 1/4/2024 6,140,839.84 3.94% 6,188,097.00 47,257.16UNITED STATES TREASURY 10/31/2023 4.875% 10/31/2028 91282CJF9 5,160,000.00 AA+ 1/8/2024 5,355,717.19 4.00% 5,411,962.80 56,245.61UNITED STATES TREASURY 11/16/1998 5.250% 11/15/2028 912810FF0 11,160,000.00 AA+ 9/17/2024 11,969,100.00 3.37% 11,884,060.80 -85,039.20UNITED STATES TREASURY 11/30/2023 4.375% 11/30/2028 91282CJN2 8,025,000.00 AA+ 1/26/2024 8,150,704.10 4.01% 8,270,805.75 120,101.65 UNITED STATES TREASURY 1/2/2024 3.750% 12/31/2028 91282CJR3 14,950,000.00 AA+ 1/19/2024 14,770,132.81 4.02% 15,050,464.00 280,331.19UNITED STATES TREASURY 1/2/2024 3.750% 12/31/2028 91282CJR3 6,250,000.00 AA+ 1/4/2024 6,202,148.44 3.92% 6,292,000.00 89,851.56UNITED STATES TREASURY 1/31/2024 4.000% 1/31/2029 91282CJW2 6,400,000.00 AA+ 2/13/2024 6,367,750.00 4.11% 6,508,032.00 140,282.00UNITED STATES TREASURY 1/31/2024 4.000% 1/31/2029 91282CJW2 5,030,000.00 AA+ 2/14/2024 4,968,107.42 4.28% 5,114,906.40 146,798.98UNITED STATES TREASURY 1/31/2024 4.000% 1/31/2029 91282CJW2 4,735,000.00 AA+ 9/5/2024 4,814,348.24 3.58% 4,814,926.80 578.56 UNITED STATES TREASURY 2/16/1999 5.250% 2/15/2029 912810FG8 8,610,000.00 AA+ 7/24/2024 9,040,500.00 4.04% 9,226,131.60 185,631.60 UNITED STATES TREASURY 2/29/2024 4.250% 2/28/2029 91282CKD2 4,375,000.00 AA+ 9/27/2024 4,498,046.88 3.56% 4,496,493.75 -1,553.13 UNITED STATES TREASURY 2/29/2024 4.250% 2/28/2029 91282CKD2 2,850,000.00 AA+ 3/7/2024 2,867,923.83 4.11% 2,929,144.50 61,220.67UNITED STATES TREASURY 4/1/2024 4.125% 3/31/2029 91282CKG5 10,050,000.00 AA+ 4/11/2024 9,938,900.39 4.37% 10,278,135.00 339,234.61UNITED STATES TREASURY 4/30/2024 4.625% 4/30/2029 91282CKP5 16,425,000.00 AA+ 4/30/2024 16,412,167.97 4.64% 17,151,313.50 739,145.53UNITED STATES TREASURY 4/30/2024 4.625% 4/30/2029 91282CKP5 5,625,000.00 AA+ 8/2/2024 5,809,570.31 3.86% 5,873,737.50 64,167.19 UNITED STATES TREASURY 5/31/2024 4.500% 5/31/2029 91282CKT7 4,950,000.00 AA+ 6/7/2024 4,993,892.58 4.30% 5,148,000.00 154,107.42UNITED STATES TREASURY 7/1/2024 4.250% 6/30/2029 91282CKX8 24,360,000.00 AA+ 9/5/2024 25,072,406.07 3.58% 25,071,799.20 -606.87 UNITED STATES TREASURY 7/1/2024 4.250% 6/30/2029 91282CKX8 1,100,000.00 AA+ 8/15/2024 1,128,316.41 3.67% 1,132,142.00 3,825.59UNITED STATES TREASURY 7/1/2024 4.250% 6/30/2029 91282CKX8 7,590,000.00 AA+ 7/3/2024 7,538,411.72 4.40% 7,811,779.80 273,368.08UNITED STATES TREASURY 7/1/2024 4.250% 6/30/2029 91282CKX8 16,955,000.00 AA+ 7/3/2024 16,858,965.82 4.38% 17,450,425.10 591,459.28UNITED STATES TREASURY 7/31/2024 4.000% 7/31/2029 91282CLC3 9,575,000.00 AA+ 9/17/2024 9,819,237.30 3.43% 9,756,733.50 -62,503.80 UNITED STATES TREASURY 8/31/2022 3.125% 8/31/2029 91282CFJ5 10,650,000.00 AA+ 9/27/2024 10,429,095.70 3.59% 10,428,267.00 -828.70 UNITED STATES TREASURY 9/3/2024 3.625% 8/31/2029 91282CLK5 12,700,000.00 AA+ 9/5/2024 12,736,214.84 3.56% 12,737,719.00 1,504.16UNITED STATES TREASURY 9/3/2024 3.625% 8/31/2029 91282CLK5 1,870,000.00 AA+ 9/3/2024 1,864,156.25 3.69% 1,875,553.90 11,397.65 U.S. Treasury Bond / Note Subtotal 611,755,000.00 605,199,828.04 612,385,577.95 7,185,749.91 FANNIE MAE 1/10/2020 1.625% 1/7/2025 3135G0X24 225,000.00 AA+ 1/22/2020 224,970.75 1.63% 223,184.25 -1,786.50FANNIE MAE 4/24/2020 0.625% 4/22/2025 3135G03U5 10,000,000.00 AA+ 5/7/2020 10,050,600.00 0.52% 9,797,800.00 -252,800.00FANNIE MAE 11/12/2020 0.500% 11/7/2025 3135G06G3 1,860,000.00 AA+ 12/29/2020 1,864,929.00 0.44% 1,789,822.20 -75,106.80FNMA Medium Term Note Subtotal 12,085,000.00 12,140,499.75 11,810,806.45 -329,693.30 10/17/2024 5:23 PM 2 of 5
Attachment A
City of Santa Clara Monthly Report
9/30/2024
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LFEDERAL FARM CREDIT BANK 1/23/2020 1.650% 1/23/2025 3133ELJM7 7,320,000.00 AA+ 5/18/2020 7,689,367.20 0.56% 7,252,656.00 -436,711.20 FEDERAL FARM CREDIT BANK 5/14/2020 0.500% 5/14/2025 3133ELZM9 10,000,000.00 AA+ 5/15/2020 9,982,800.00 0.53% 9,775,700.00 -207,100.00FEDERAL FARM CREDIT BANK 6/9/2020 0.500% 6/9/2025 3133ELH23 10,000,000.00 AA+ 6/12/2020 9,997,540.00 0.50% 9,750,800.00 -246,740.00FFCB Medium Term Note Subtotal 27,320,000.00 27,669,707.20 26,779,156.00 -890,551.20 FEDERAL FARM CREDIT BANK 7/2/2020 0.500% 7/2/2025 3133ELR71 10,000,000.00 AA+ 7/14/2020 10,017,640.00 0.46% 9,731,600.00 -286,040.00FFCB Coupon Note Subtotal 10,000,000.00 10,017,640.00 9,731,600.00 -286,040.00FEDERAL HOME LOAN BANK 11/6/2014 2.750% 12/13/2024 3130A3GE8 5,000,000.00 AA+ 3/12/2020 5,461,300.00 0.77% 4,981,000.00 -480,300.00 FHLB Medium Term Note Subtotal 5,000,000.00 5,461,300.00 4,981,000.00 -480,300.00FREDDIE MAC 2/14/2020 1.500% 2/12/2025 3137EAEP0 5,000,000.00 AA+ 5/20/2020 5,226,960.00 0.53% 4,942,500.00 -284,460.00FREDDIE MAC 8/30/2022 4.050% 8/28/2025 3134GXS54 5,000,000.00 AA+ 8/30/2022 4,998,000.00 4.06% 4,990,450.00 -7,550.00FREDDIE MAC 9/25/2020 0.375% 9/23/2025 3137EAEX3 9,390,000.00 AA+ 9/25/2020 9,361,736.10 0.44% 9,064,448.70 -297,287.40 FREDDIE MAC 10/10/2023 6.000% 10/10/2028 3134H1FT5 4,225,000.00 AA+ 10/10/2023 4,225,000.00 6.00% 4,220,310.25 -4,689.75 FHLMC Medium Term Note Subtotal 23,615,000.00 23,811,696.10 23,217,708.95 -593,987.15 FANNIE MAE-ACES 7/1/2023 4.181% 7/1/2028 3136BQDE6 8,361,127.84 AA+ 11/30/2023 8,036,807.52 5.14% 8,395,074.04 358,266.52 FANNIE MAE-ACES 7/1/2023 4.181% 7/1/2028 3136BQDE6 7,262,236.79 AA+ 7/31/2023 7,139,119.19 4.58% 7,291,721.45 152,602.26 FHLMC MULTIFAMILY STRUCTURED PASS THROU 1/1/2017 3.347% 11/1/2026 3137BTUM1 5,252,368.93 AA+ 5/24/2023 5,090,694.45 4.29% 5,173,530.87 82,836.42FHLMC MULTIFAMILY STRUCTURED PASS THROU 5/1/2017 3.224% 3/1/2027 3137BXQY1 8,000,000.00 AA+ 8/18/2023 7,546,250.00 4.94% 7,867,360.00 321,110.00 FHLMC MULTIFAMILY STRUCTURED PASS THROU 7/1/2017 3.243% 4/1/2027 3137F1G44 4,545,000.00 AA+ 8/18/2023 4,285,260.35 4.93% 4,462,462.80 177,202.45FHLMC MULTIFAMILY STRUCTURED PASS THROU 8/1/2017 3.117% 6/1/2027 3137F2LJ3 6,525,000.00 AA+ 8/22/2023 6,101,894.53 4.97% 6,383,864.25 281,969.72FHLMC MULTIFAMILY STRUCTURED PASS THROU 7/1/2023 4.819% 6/1/2028 3137HACX2 7,500,000.00 AA+ 7/20/2023 7,574,910.00 4.59% 7,696,275.00 121,365.00FHLMC MULTIFAMILY STRUCTURED PASS THROU 7/1/2023 4.777% 6/1/2028 3137HAD45 6,060,684.04 AA+ 7/27/2023 6,060,532.53 4.78% 6,157,291.34 96,758.81

FHLMC MULTIFAMILY
STRUCTURED PASS THROU 10/1/2023 4.740% 8/1/2028 3137HAQ74 5,750,000.00 AA+ 10/19/2023 5,623,868.00 5.25% 5,897,027.50 273,159.50 Federal Agency Commercial Mortgage-Backed Security Subtotal 59,256,417.61 57,459,336.57 59,324,607.25 1,865,270.68 ADOBE INC 1/26/2015 3.250% 2/1/2025 00724FAC5 4,000,000.00 A+ 1/26/2022 4,183,680.00 1.68% 3,975,600.00 -208,080.00ADOBE INC 4/4/2024 4.800% 4/4/2029 00724PAF6 1,635,000.00 A+ 4/4/2024 1,632,563.85 4.83% 1,689,085.80 56,521.95 ADOBE INC 4/4/2024 4.800% 4/4/2029 00724PAF6 1,340,000.00 A+ 4/4/2024 1,337,762.20 4.84% 1,384,327.20 46,565.00 ALPHABET INC 8/9/2016 1.998% 8/15/2026 02079KAC1 5,740,000.00 AA+ 1/30/2023 5,354,386.80 4.05% 5,563,954.20 209,567.40 AMAZON.COM INC 4/13/2022 3.300% 4/13/2027 023135CF1 6,715,000.00 AA 4/25/2022 6,672,964.10 3.44% 6,629,249.45 -43,714.65 APPLE INC 11/13/2017 2.750% 1/13/2025 037833DF4 5,000,000.00 AA+ 3/29/2021 5,355,200.00 0.84% 4,973,450.00 -381,750.00APPLE INC 11/13/2017 2.750% 1/13/2025 037833DF4 5,000,000.00 AA+ 3/9/2021 5,340,100.00 0.94% 4,973,450.00 -366,650.00BANK OF NY MELLON CORP 1/28/2021 0.750% 1/28/2026 06406RAQ0 9,000,000.00 A 2/10/2021 9,025,920.00 0.69% 8,609,850.00 -416,070.00BLACKROCK INC 3/28/2017 3.200% 3/15/2027 09247XAN1 4,140,000.00 AA- 5/18/2022 4,086,055.80 3.50% 4,080,135.60 -5,920.20 BLACKROCK INC 3/28/2017 3.200% 3/15/2027 09247XAN1 4,140,000.00 AA- 5/18/2022 4,085,352.00 3.50% 4,080,135.60 -5,216.40 BLACKROCK INC 3/14/2024 4.700% 3/14/2029 09290DAA9 2,924,000.00 AA- 4/11/2024 2,911,222.12 4.80% 3,007,480.20 96,258.08 BLACKROCK INC 3/14/2024 4.700% 3/14/2029 09290DAA9 350,000.00 AA- 3/14/2024 349,366.50 4.74% 359,992.50 10,626.00 10/17/2024 5:23 PM 3 of 5
Attachment A
City of Santa Clara Monthly Report
9/30/2024
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LBOFA SECURITIES INC. 3/22/2022 3.384% 4/2/2026 06051GKM0 5,000,000.00 A- 3/22/2022 5,005,100.00 3.36% 4,960,050.00 -45,050.00 BOFA SECURITIES INC. 8/18/2023 5.526% 8/18/2026 06428CAA2 4,000,000.00 A+ 8/18/2023 3,998,360.00 5.54% 4,107,000.00 108,640.00BOFA SECURITIES INC. 4/22/2021 1.734% 7/22/2027 06051GJS9 1,420,000.00 A- 8/10/2022 1,281,251.80 3.92% 1,355,659.80 74,408.00 BRISTOL-MYERS SQUIBB CO 11/13/2020 0.750% 11/13/2025 110122DN5 5,725,000.00 A 6/30/2021 5,672,673.50 0.96% 5,515,007.00 -157,666.50 CITIGROUP INC 9/29/2023 5.803% 9/29/2028 17325FBB3 11,225,000.00 A+ 9/29/2023 11,225,000.00 5.80% 11,882,448.25 657,448.25 ELI LILLY & COMPANY 3/5/2015 2.750% 6/1/2025 532457BH0 5,415,000.00 A+ 2/10/2022 5,559,255.60 1.91% 5,356,301.40 -202,954.20 ELI LILLY & COMPANY 8/14/2024 4.200% 8/14/2029 532457CQ9 1,555,000.00 A+ 8/14/2024 1,557,643.50 4.16% 1,569,896.90 12,253.40 ELI LILLY & COMPANY 8/14/2024 4.200% 8/14/2029 532457CQ9 445,000.00 A+ 8/14/2024 444,025.45 4.25% 449,263.10 5,237.65HERSHEY CO/THE 8/21/2015 3.200% 8/21/2025 427866AU2 3,000,000.00 A 3/30/2022 3,014,040.00 3.05% 2,971,410.00 -42,630.00HOME DEPOT INC/THE 9/14/2017 2.800% 9/14/2027 437076BT8 7,805,000.00 A 1/27/2023 7,364,719.95 4.15% 7,583,962.40 219,242.45 HONEYWELL INTERNATIONAL INC 5/18/2020 1.350% 6/1/2025 438516CB0 5,000,000.00 A 9/8/2021 5,097,900.00 0.82% 4,905,800.00 -192,100.00HONEYWELL INTERNATIONAL INC 5/18/2020 1.350% 6/1/2025 438516CB0 2,255,000.00 A 3/22/2022 2,181,960.55 2.41% 2,212,515.80 30,555.25 JOHN DEERE CAPITAL CORP 6/17/2021 1.050% 6/17/2026 24422EVR7 5,000,000.00 A 12/8/2021 4,908,600.00 1.47% 4,764,650.00 -143,950.00JOHN DEERE CAPITAL CORP 7/14/2023 4.950% 7/14/2028 24422EXB0 605,000.00 A 7/18/2023 610,874.55 4.73% 625,079.95 14,205.40 JOHN DEERE CAPITAL CORP 7/14/2023 4.950% 7/14/2028 24422EXB0 505,000.00 A 7/14/2023 504,247.55 4.98% 521,760.95 17,513.40 JOHNSON & JOHNSON 8/25/2020 0.550% 9/1/2025 478160CN2 5,000,000.00 AAA 9/3/2020 5,023,550.00 0.45% 4,842,400.00 -181,150.00 JPMORGAN CHASE FINANCIAL CO LLC 3/13/2020 2.005% 3/13/2026 46647PBH8 2,800,000.00 A- 3/22/2022 2,712,500.00 2.84% 2,762,648.00 50,148.00JPMORGAN CHASE FINANCIAL CO LLC 4/22/2021 1.578% 4/22/2027 46647PCB0 4,100,000.00 A- 8/10/2022 3,710,746.00 3.80% 3,927,677.00 216,931.00JPMORGAN CHASE FINANCIAL CO LLC 2/24/2022 2.947% 2/24/2028 46647PCW4 2,925,000.00 A- 9/18/2023 2,674,532.25 5.13% 2,836,840.50 162,308.25JPMORGAN CHASE FINANCIAL CO LLC 4/22/2024 5.571% 4/22/2028 46647PEE2 5,000,000.00 A- 8/9/2024 5,103,350.00 4.95% 5,155,350.00 52,000.00 MASTERCARD INC 12/3/2019 2.000% 3/3/2025 57636QAN4 5,000,000.00 A+ 3/9/2021 5,213,450.00 0.91% 4,947,200.00 -266,250.00 MASTERCARD INC 12/3/2019 2.000% 3/3/2025 57636QAN4 5,000,000.00 A+ 3/10/2022 4,990,800.00 2.06% 4,947,200.00 -43,600.00MASTERCARD INC 5/31/2019 2.950% 6/1/2029 57636QAM6 7,500,000.00 A+ 6/27/2024 6,889,875.00 4.82% 7,186,200.00 296,325.00 META PLATFORMS INC 8/9/2024 4.300% 8/15/2029 30303M8S4 5,370,000.00 AA- 8/14/2024 5,385,895.20 4.23% 5,452,805.40 66,910.20 MICROSOFT CORP 2/12/2015 2.700% 2/12/2025 594918BB9 5,000,000.00 AAA 3/9/2021 5,341,700.00 0.92% 4,966,600.00 -375,100.00MICROSOFT CORP 11/3/2015 3.125% 11/3/2025 594918BJ2 5,100,000.00 AAA 1/25/2023 4,940,982.00 4.33% 5,051,856.00 110,874.00 MORGAN STANLEY BANK NA 5/30/2024 5.504% 5/26/2028 61690U8B9 6,105,000.00 A+ 5/31/2024 6,117,881.55 5.45% 6,297,429.60 179,548.05 MORGAN STANLEY BANK NA 5/30/2024 5.504% 5/26/2028 61690U8B9 3,145,000.00 A+ 5/30/2024 3,145,000.00 5.50% 3,244,130.40 99,130.40NOVARTIS FINANCE CORPORATION 11/20/2015 3.000% 11/20/2025 66989HAJ7 10,000,000.00 AA- 1/31/2023 9,638,600.00 4.38% 9,884,500.00 245,900.00 PACCAR FINANCIAL CORP 1/31/2024 4.600% 1/31/2029 69371RS80 7,000,000.00 A+ 7/30/2024 6,996,080.00 4.61% 7,177,940.00 181,860.00PEPSICO INC 7/17/2024 4.500% 7/17/2029 713448FX1 4,380,000.00 A+ 7/17/2024 4,373,211.00 4.53% 4,514,290.80 141,079.80 QUALCOMM INC 5/20/2015 3.450% 5/20/2025 747525AF0 5,850,000.00 A 5/19/2022 5,860,588.50 3.39% 5,816,713.50 -43,875.00 STATE STREET CORP 2/7/2022 1.746% 2/6/2026 857477BR3 1,115,000.00 A 2/7/2022 1,115,000.00 1.75% 1,101,854.15 -13,145.85 STATE STREET CORP 10/29/2020 2.901% 3/30/2026 857477BM4 4,250,000.00 A 3/14/2022 4,275,372.50 2.74% 4,205,715.00 -69,657.50 TARGET CORP 1/24/2022 1.950% 1/15/2027 87612EBM7 4,595,000.00 A 2/1/2022 4,567,889.50 2.08% 4,413,957.00 -153,932.50 TARGET CORP 1/24/2022 1.950% 1/15/2027 87612EBM7 990,000.00 A 1/24/2022 988,317.00 1.99% 950,994.00 -37,323.00 TOYOTA MOTOR CREDIT CORP 9/11/2023 5.250% 9/11/2028 89236TLB9 5,600,000.00 A+ 9/11/2023 5,590,256.00 5.29% 5,834,864.00 244,608.00 WALMART INC. 6/27/2018 3.550% 6/26/2025 931142ED1 5,700,000.00 AA 2/8/2022 6,011,847.00 1.87% 5,676,801.00 -335,046.00Corporate Note Subtotal 220,464,000.00 219,427,649.32 219,303,482.45 -124,166.87 10/17/2024 5:23 PM 4 of 5
Attachment A
City of Santa Clara Monthly Report
9/30/2024
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LAMERICAN EXPRESS CREDIT TRUST 2023-1 9/19/2023 5.230% 9/15/2028 02582JKD1 6,170,000.00 AAA 9/19/2023 6,169,724.20 5.24% 6,311,910.00 142,185.80 BA CREDIT CARD TRUST 12/14/2023 4.980% 11/15/2028 05522RDH8 3,045,000.00 NR 12/14/2023 3,044,591.06 4.98% 3,106,356.75 61,765.69BOFA AUTO TRUST 2024-1 7/31/2023 5.530% 2/15/2028 06428AAC2 3,120,000.00 NR 7/31/2023 3,119,881.75 5.53% 3,163,024.80 43,143.05 BOFA AUTO TRUST 2024-1 11/21/2023 5.740% 6/15/2028 06054YAC1 6,595,000.00 NR 11/21/2023 6,594,880.63 5.76% 6,730,131.55 135,250.92CARMAX AUTO OWNER TRUST 2023-3 4/21/2021 0.520% 2/17/2026 14314QAC8 151,344.87 AAA 4/21/2021 151,312.26 0.52% 150,777.33 -534.93CHASE ISSUANCE TRUST 9/15/2023 5.160% 9/15/2028 161571HT4 6,045,000.00 AAA 9/15/2023 6,043,324.33 5.17% 6,176,176.50 132,852.17CHASE ISSUANCE TRUST 1/31/2024 4.600% 1/16/2029 161571HV9 7,605,000.00 AAA 1/31/2024 7,603,841.76 4.60% 7,702,115.85 98,274.09 CITIBANK CREDIT CARD ISSUANCE TRUST 12/11/2023 5.230% 12/8/2027 17305EGW9 1,855,000.00 AAA 12/11/2023 1,854,767.38 5.23% 1,874,848.50 20,081.12FIFTH THIRD AUTO TRUST 8/23/2023 5.530% 8/15/2028 31680EAD3 5,270,000.00 AAA 8/23/2023 5,269,673.26 5.53% 5,344,675.90 75,002.64 GM FINANCIAL SECURITIZED TERM AUTO RECE 1/17/2024 4.850% 12/18/2028 36268GAD7 815,000.00 NR 1/17/2024 814,836.10 4.85% 825,334.20 10,498.10 HONDA AUTO RECEIVABLES OWNER TRUST 2024 11/24/2021 0.880% 1/21/2026 43815GAC3 438,582.56 NR 11/24/2021 438,490.10 0.89% 432,872.22 -5,617.88HONDA AUTO RECEIVABLES OWNER TRUST 2024 8/22/2023 5.410% 2/18/2028 43815QAC1 4,825,000.00 AAA 8/22/2023 4,824,005.09 5.42% 4,894,287.00 70,281.91HYUNDAI AUTO RECEIVABLES TRUST 2024-B 11/17/2021 0.740% 5/15/2026 44935FAD6 292,780.77 AAA 11/17/2021 292,715.43 0.75% 290,084.26 -2,631.17 HYUNDAI AUTO RECEIVABLES TRUST 2024-B 11/13/2023 5.540% 10/16/2028 44918CAD4 2,530,000.00 AAA 11/13/2023 2,529,667.31 5.54% 2,585,761.20 56,093.89 KUBOTA CREDIT OWNER TRUST 2024-2A 7/26/2023 5.280% 1/18/2028 500945AC4 1,925,000.00 NR 7/26/2023 1,924,513.75 5.29% 1,954,760.50 30,246.75TOYOTA AUTO RECEIVABLES OWNER TRUST COM 9/27/2021 0.430% 1/15/2026 89239BAC5 486,269.61 AAA 9/27/2021 486,230.86 0.43% 482,087.69 -4,143.17TOYOTA AUTO RECEIVABLES OWNER TRUST COM 8/15/2023 5.160% 4/17/2028 89231FAD2 1,505,000.00 AAA 8/15/2023 1,504,659.57 5.17% 1,523,330.90 18,671.33TOYOTA AUTO RECEIVABLES OWNER TRUST COM 11/14/2023 5.540% 8/15/2028 89239FAD4 1,725,000.00 AAA 11/14/2023 1,724,814.05 5.54% 1,765,278.75 40,464.70USAA AUTO OWNER TRUST 2024- A 9/15/2023 5.580% 5/15/2028 90291VAC4 6,030,000.00 AAA 9/15/2023 6,028,944.75 5.58% 6,107,304.60 78,359.85 Asset-Backed Security Subtotal 60,428,977.80 60,420,873.64 61,421,118.50 1,000,244.86 COOPERAT RABOBANK UA/NY 7/20/2023 5.080% 7/17/2026 21684LGS5 7,500,000.00 A+ 7/20/2023 7,500,000.00 5.08% 7,699,575.00 199,575.00 Certificate of Deposit Subtotal 7,500,000.00 7,500,000.00 7,699,575.00 199,575.00 PRINCIPAL PUBLIC DEPOSIT SWEEP PROGRAM 2.650% 10/1/2024 992995944 988,565.40 9/1/2020 988,565.40 988,565.40 - LOCAL AGENCY INVESTMENT FUND 4.575% 10/1/2024 6,001,482.83 9/30/1997 6,001,482.83 6,001,482.83 -CALIFORNIA ASSET MANAGEMENT PROGRAM 5.290% 10/1/2024 132,245,647.89 10/4/2022 132,245,647.89 132,245,647.89 -CALIFORNIA ASSET MANAGEMENT PROGRAM - TERM 5.120% 10/21/2024 10,000,000.00 1/25/2024 10,000,000.00 10,000,000.00 - DREYFUS TREASURY 5.320% 10/1/2024 10/31/1997 2,379,646.00 2,379,646.00 2,379,646.00 - Cash Equivalent Subtotal 151,615,342.12 151,615,342.12 151,615,342.12 - Grand Total Count 178 1,180,723,872.74 1,189,039,737.53 1,188,269,974.67 7,546,101.93 10/17/2024 5:23 PM 5 of 5
Attachment A
PAGE 22

STATEMENT OF TRANSACTIONS CITY OF SANTA CLARA- CUSTODY
FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER XXXXXXXX ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

CASH EQUIVALENTS
09/03/24 INTEREST RECEIVED 1,172.07

PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM
INTEREST FROM 8/1/24 TO 8/31/24
09/30/24 106,271,832.09 CASH SWEEP PURCHASES FOR STMT PERIOD 106,271,832.09- 106,271,832.09

PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM
12 TRANSACTIONS
09/30/24 106,313,692.69- CASH SWEEP SALES FOR STMT PERIOD 106,313,692.69 106,313,692.69-

PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM
4 TRANSACTIONS

BONDS & NOTES
09/16/24 INTEREST RECEIVED 26,890.91
AMERICAN EXPRES ABS 5.230% 9/15/28
CUSIP 02582JKD1
$0.00436/PV ON 6,170,000.00 PV
DUE 9/15/24
09/16/24 INTEREST RECEIVED 14,378.00
BANK OF AMERICA ABS 5.530% 2/15/28
CUSIP 06428AAC2
$0.00461/PV ON 3,120,000.00 PV
DUE 9/15/24
09/16/24 INTEREST RECEIVED 31,546.08
BANK OF AMERICA ABS 5.740% 6/15/28
CUSIP 06054YAC1
$0.00478/PV ON 6,595,000.00 PV
DUE 9/15/24
Attachment B
PAGE 23

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/16/24 INTEREST RECEIVED 12,636.75
BK OF AMERICA ABS 4.980% 11/15/28
CUSIP 05522RDH8
$0.00415/PV ON 3,045,000.00 PV
DUE 9/15/24
09/16/24 INTEREST RECEIVED 76,939.00
BLACKROCK FUNDING 4.700% 3/14/29
CUSIP 09290DAA9
INTEREST ON 3,274,000.000 UNITS
09/16/24 INTEREST RECEIVED 132,480.00
BLACKROCK INC 3.200% 3/15/27
CUSIP 09247XAN1
INTEREST ON 8,280,000.000 UNITS
09/16/24 INTEREST RECEIVED 101.49
CARMAX AUTO OWNER TR 0.520% 2/17/26
CUSIP 14314QAC8
$0.00004/PV ON 234,216.02 PV
DUE 9/15/24
09/16/24 82,871.15- PAID DOWN 82,871.15 82,853.29- 17.86 CARMAX AUTO OWNER TR 0.520% 2/17/26
CUSIP 14314QAC8
TO SETTLE ON 09/16/2024
09/16/24 INTEREST RECEIVED 29,152.50
CHASE ISSUANCE ABS 4.600% 1/16/29
CUSIP 161571HV9
$0.00383/PV ON 7,605,000.00 PV
DUE 9/15/24
09/16/24 INTEREST RECEIVED 25,993.50
CHASE ISSUANCE ABS 5.160% 9/15/28
CUSIP 161571HT4
$0.00430/PV ON 6,045,000.00 PV
DUE 9/15/24
Attachment B
PAGE 24

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/30/24 INTEREST RECEIVED 325,693.38
CITIBANK 5.803% 9/29/28
CUSIP 17325FBB3
INTEREST ON 11,225,000.000 UNITS
09/16/24 INTEREST RECEIVED 1,015.00
DISCOVER CARD EXECUT 0.580% 9/15/26
CUSIP 254683CP8
$0.00048/PV ON 2,100,000.00 PV
DUE 9/15/24
09/16/24 2,100,000- PAID DOWN 2,100,000.00 2,099,550.39- 449.61 DISCOVER CARD EXECUT 0.580% 9/15/26
CUSIP 254683CP8
09/23/24 INTEREST RECEIVED 17,606.25
FED HOME LN MTG CORP 0.375% 9/23/25
CUSIP 3137EAEX3
INTEREST ON 9,390,000.000 UNITS
09/25/24 INTEREST RECEIVED 16,948.69
FED HOME LN MTG CORP 3.117% 6/25/27
CUSIP 3137F2LJ3
$0.00260/PV ON 6,525,000.00 PV
DUE 9/25/24
09/25/24 INTEREST RECEIVED 14,678.18
FHLMC K061 CMO V-M 3.347% 11/25/26
CUSIP 3137BTUM1
$0.00274/PV ON 5,262,569.26 PV
DUE 9/25/24
09/25/24 10,200.33- PAID DOWN 10,200.33 9,886.35- 313.98 FHLMC K061 CMO V-M 3.347% 11/25/26
CUSIP 3137BTUM1
AT $2,506.9714 ON TRADE DATE 09/25/2024
Attachment B
PAGE 25

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/25/24 INTEREST RECEIVED 22,712.50
FHLMC K508 CMO V-M 4.740% 8/25/28
CUSIP 3137HAQ74
$0.00395/PV ON 5,750,000.00 PV
DUE 9/25/24
09/25/24 INTEREST RECEIVED 12,282.86
FHLMC MULTIFAMILY ST 3.243% 4/25/27
CUSIP 3137F1G44
$0.00270/PV ON 4,545,000.00 PV
DUE 9/25/24
09/25/24 INTEREST RECEIVED 24,142.05
FHLMC SER KJ46 CMO 4.777% 6/25/28
CUSIP 3137HAD45
$0.00395/PV ON 6,064,572.20 PV
DUE 9/25/24
09/25/24 3,888.16- PAID DOWN 3,888.16 3,888.06- 0.10
FHLMC SER KJ46 CMO 4.777% 6/25/28
CUSIP 3137HAD45
AT $6,576.8734 ON TRADE DATE 09/25/2024
09/25/24 INTEREST RECEIVED 30,118.75
FHLMC SER K505 CMO 4.819% 6/25/28
CUSIP 3137HACX2
$0.00402/PV ON 7,500,000.00 PV
DUE 9/25/24
09/16/24 INTEREST RECEIVED 24,285.91
FIFTH THIRD AUT ABS 5.530% 8/15/28
CUSIP 31680EAD3
$0.00461/PV ON 5,270,000.00 PV
DUE 9/15/24
Attachment B
PAGE 26

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/25/24 INTEREST RECEIVED 57,088.76
FNMA SER M6 CMO V-M 4.190% 7/25/28
CUSIP 3136BQDE6
$0.00349/PV ON 16,350,000.00 PV
DUE 9/25/24
09/25/24 726,635.37- PAID DOWN 726,635.37 705,825.24- 20,810.13 FNMA SER M6 CMO V-M 4.190% 7/25/28
CUSIP 3136BQDE6
AT $65.7592 ON TRADE DATE 09/25/2024
09/16/24 INTEREST RECEIVED 3,293.96
GM FINANCIAL ABS 4.850% 12/18/28
CUSIP 36268GAD7
$0.00404/PV ON 815,000.00 PV
DUE 9/16/24
09/16/24 INTEREST RECEIVED 109,270.00
HOME DEPOT INC 2.800% 9/14/27
CUSIP 437076BT8
INTEREST ON 7,805,000.000 UNITS
09/18/24 INTEREST RECEIVED 21,752.71
HONDA AUTO ABS 5.410% 2/18/28
CUSIP 43815QAC1
$0.00451/PV ON 4,825,000.00 PV
DUE 9/18/24
09/23/24 INTEREST RECEIVED 371.24
HONDA AUTO RECEIVABL 0.880% 1/21/26
CUSIP 43815GAC3
$0.00023/PV ON 506,231.39 PV
DUE 9/21/24
09/23/24 67,648.83- PAID DOWN 67,648.83 67,634.57- 14.26 HONDA AUTO RECEIVABL 0.880% 1/21/26
CUSIP 43815GAC3
TO SETTLE ON 09/23/2024
Attachment B
PAGE 27

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/16/24 INTEREST RECEIVED 11,680.17
HYUNDAI AUTO REC ABS 5.540% 10/16/28
CUSIP 44918CAD4
$0.00462/PV ON 2,530,000.00 PV
DUE 9/15/24
09/16/24 INTEREST RECEIVED 217.37
HYUNDAI AUTO RECEIVA 0.740% 5/15/26
CUSIP 44935FAD6
$0.00017/PV ON 352,490.23 PV
DUE 9/15/24
09/16/24 59,709.46- PAID DOWN 59,709.46 59,696.13- 13.33 HYUNDAI AUTO RECEIVA 0.740% 5/15/26
CUSIP 44935FAD6
AT $2,007.7230 ON TRADE DATE 09/15/2024
TO SETTLE ON 09/16/2024
09/03/24 INTEREST RECEIVED 13,750.00
JOHNSON & JOHNSON 0.550% 9/01/25
CUSIP 478160CN2
INTEREST ON 5,000,000.000 UNITS
09/16/24 INTEREST RECEIVED 8,470.00
KUBOTA CREDIT ABS 5.280% 1/18/28
CUSIP 500945AC4
$0.00440/PV ON 1,925,000.00 PV
DUE 9/15/24
09/03/24 INTEREST RECEIVED 100,000.00
MASTERCARD INC 2.000% 3/03/25
CUSIP 57636QAN4
INTEREST ON 10,000,000.000 UNITS
09/30/24 INTEREST RECEIVED 61,646.25
STATE STREET CORP 2.901% 3/30/26
CUSIP 857477BM4
INTEREST ON 4,250,000.000 UNITS
Attachment B
PAGE 28

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/16/24 INTEREST RECEIVED 6,471.50
TOYOTA AUTO REC ABS 5.160% 4/17/28
CUSIP 89231FAD2
$0.00430/PV ON 1,505,000.00 PV
DUE 9/15/24
09/16/24 INTEREST RECEIVED 7,963.75
TOYOTA AUTO REC ABS 5.540% 8/15/28
CUSIP 89239FAD4
$0.00462/PV ON 1,725,000.00 PV
DUE 9/15/24
09/16/24 INTEREST RECEIVED 213.32
TOYOTA AUTO RECEIVAB 0.430% 1/15/26
CUSIP 89239BAC5
$0.00008/PV ON 595,301.39 PV
DUE 9/15/24
09/16/24 109,031.78- PAID DOWN 109,031.78 109,023.09- 8.69 TOYOTA AUTO RECEIVAB 0.430% 1/15/26
CUSIP 89239BAC5
AT $1,099.4964 ON TRADE DATE 09/15/2024
TO SETTLE ON 09/16/2024
09/11/24 INTEREST RECEIVED 147,000.00
TOYOTA MTR CR MTN 5.250% 9/11/28
CUSIP 89236TLB9
INTEREST ON 5,600,000.000 UNITS
09/30/24 INTEREST RECEIVED 11,750.00
U.S TREASURY NOTES 2.500% 3/31/27
CUSIP 91282CEF4
INTEREST ON 940,000.000 UNITS
09/27/24 10,650,000 PURCHASED 10,429,095.70- 10,429,095.70 U.S. TREASURY NOTES 3.125% 8/31/29
CUSIP 91282CFJ5
AT $97.9258 ON TRADE DATE 09/26/2024
TO SETTLE ON 09/27/2024

BNP PARIBAS SECURITIES CORP/BO
Attachment B
PAGE 29

STATEMENT OF TRANSACTIONS

REALIZED

BMOCM/BONDS
09/03/24 ACCRUED INTEREST ON PURCHASE 561.77-
U.S. TREASURY NOTES 3.625% 8/31/29
CUSIP 91282CLK5
09/05/24 12,700,000 PURCHASED 12,736,214.84- 12,736,214.84 U.S. TREASURY NOTES 3.625% 8/31/29
CUSIP 91282CLK5
AT $100.2852 ON TRADE DATE 09/04/2024
TO SETTLE ON 09/05/2024
HSBC SECURITIES, INC.
09/05/24 ACCRUED INTEREST ON PURCHASE 6,358.77-
U.S. TREASURY NOTES 3.625% 8/31/29
CUSIP 91282CLK5
09/05/24 7,130,000 PURCHASED 7,182,917.97- 7,182,917.97 U.S. TREASURY NOTES 3.875% 11/30/27
CUSIP 91282CFZ9
AT $100.7422 ON TRADE DATE 09/04/2024
TO SETTLE ON 09/05/2024
BARCLAYS CAPITAL INC. FIXED IN
Attachment B
PAGE 30

STATEMENT OF TRANSACTIONS

REALIZED

BMOCM/BONDS
09/27/24 ACCRUED INTEREST ON PURCHASE 67,241.25-
U.S. TREASURY NOTES 3.875% 12/31/27
CUSIP 91282CGC9
09/05/24 4,735,000 PURCHASED 4,814,348.24- 4,814,348.24 U.S. TREASURY NOTES 4.000% 1/31/29
CUSIP 91282CJW2
AT $101.6758 ON TRADE DATE 09/04/2024
TO SETTLE ON 09/05/2024
HSBC SECURITIES, INC.
09/05/24 ACCRUED INTEREST ON PURCHASE 18,528.26-
U.S. TREASURY NOTES 4.000% 1/31/29
CUSIP 91282CJW2
09/03/24 INTEREST RECEIVED 440,800.00
U.S. TREASURY NOTES 4.000% 2/29/28
CUSIP 91282CGP0
INTEREST ON 22,040,000.000 UNITS
09/17/24 9,575,000 PURCHASED 9,819,237.30- 9,819,237.30 U.S. TREASURY NOTES 4.000% 7/31/29
CUSIP 91282CLC3
AT $102.5508 ON TRADE DATE 09/16/2024
TO SETTLE ON 09/17/2024
HSBC SECURITIES, INC.

Attachment B
PAGE 31

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/17/24 ACCRUED INTEREST ON PURCHASE 49,956.52-
U.S. TREASURY NOTES 4.000% 7/31/29
CUSIP 91282CLC3
09/30/24 INTEREST RECEIVED 207,281.25
U.S. TREASURY NOTES 4.125% 3/31/29
CUSIP 91282CKG5
INTEREST ON 10,050,000.000 UNITS
09/30/24 INTEREST RECEIVED 78,065.63
U.S. TREASURY NOTES 4.125% 9/30/27
CUSIP 91282CFM8
INTEREST ON 3,785,000.000 UNITS
09/17/24 16,115,000 PURCHASED 16,442,335.94- 16,442,335.94 U.S. TREASURY NOTES 4.125% 10/31/27
CUSIP 91282CFU0
AT $102.0313 ON TRADE DATE 09/16/2024
TO SETTLE ON 09/17/2024
WACHOVIA CAPITAL MARKETS, LLC.
09/17/24 ACCRUED INTEREST ON PURCHASE 252,891.64-
U.S. TREASURY NOTES 4.125% 10/31/27
CUSIP 91282CFU0
09/03/24 INTEREST RECEIVED 60,562.50
U.S. TREASURY NOTES 4.250% 2/28/29
CUSIP 91282CKD2
INTEREST ON 2,850,000.000 UNITS
09/27/24 4,375,000 PURCHASED 4,498,046.88- 4,498,046.88 U.S. TREASURY NOTES 4.250% 2/28/29
CUSIP 91282CKD2
AT $102.8125 ON TRADE DATE 09/26/2024
TO SETTLE ON 09/27/2024

CITIGROUP GBL MKTS/SALOMON BRO
Attachment B
PAGE 32

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/27/24 ACCRUED INTEREST ON PURCHASE 13,868.27-
U.S. TREASURY NOTES 4.250% 2/28/29
CUSIP 91282CKD2
09/05/24 24,360,000 PURCHASED 25,071,768.75- 25,071,768.75 U.S. TREASURY NOTES 4.250% 6/30/29
CUSIP 91282CKX8
AT $102.9219 ON TRADE DATE 09/04/2024
TO SETTLE ON 09/05/2024
J.P. MORGAN SECURITIES INC., -
09/05/24 ACCRUED INTEREST ON PURCHASE 188,492.12-
U.S. TREASURY NOTES 4.250% 6/30/29
CUSIP 91282CKX8
09/03/24 INTEREST RECEIVED 211,640.63
U.S. TREASURY NOTES 4.375% 8/31/28
CUSIP 91282CHX2
INTEREST ON 9,675,000.000 UNITS
09/17/24 2,200,000 PURCHASED 2,257,492.19- 2,257,492.19 U.S. TREASURY NOTES 4.500% 5/15/27
CUSIP 91282CKR1
AT $102.6133 ON TRADE DATE 09/16/2024
TO SETTLE ON 09/17/2024
HSBC SECURITIES, INC.
09/17/24 ACCRUED INTEREST ON PURCHASE 33,627.72-
U.S. TREASURY NOTES 4.500% 5/15/27
CUSIP 91282CKR1
09/27/24 27,665,000 PURCHASED 28,426,868.16- 28,426,868.16 U.S. TREASURY NOTES 4.625% 6/15/27
CUSIP 91282CKV2
AT $102.7539 ON TRADE DATE 09/26/2024
TO SETTLE ON 09/27/2024
J.P. MORGAN SECURITIES INC., -
Attachment B
PAGE 33

STATEMENT OF TRANSACTIONS

REALIZED

BNP PARIBAS SECURITIES CORP/BO
09/17/24 ACCRUED INTEREST ON PURCHASE 199,014.95-
US TREASURY BOND 5.250% 11/15/28
CUSIP 912810FF0
09/03/24 INTEREST RECEIVED 5,150.00
US TREASURY NOTE 0.250% 8/31/25
CUSIP 91282CAJ0
INTEREST ON 4,120,000.000 UNITS
09/17/24 10,910,000- SOLD 10,476,157.03 10,310,098.85- 166,058.18 US TREASURY NOTE 0.250% 10/31/25
CUSIP 91282CAT8
AT $96.0234 ON TRADE DATE 09/16/2024
TO SETTLE ON 09/17/2024
WACHOVIA CAPITAL MARKETS, LLC.
09/17/24 ACCRUED INTEREST ON SALE 10,376.36
US TREASURY NOTE 0.250% 10/31/25
CUSIP 91282CAT8
Attachment B
PAGE 34

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/17/24 28,520,000- SOLD 27,236,600.00 26,935,125.00- 301,475.00 US TREASURY NOTE 0.375% 1/31/26
CUSIP 91282CBH3
AT $95.5000 ON TRADE DATE 09/16/2024
TO SETTLE ON 09/17/2024

BMOCM/BONDS
09/17/24 ACCRUED INTEREST ON SALE 13,950.00
US TREASURY NOTE 0.375% 1/31/26
CUSIP 91282CBH3
09/03/24 INTEREST RECEIVED 21,875.00
US TREASURY NOTE 0.500% 2/28/26
CUSIP 91282CBQ3
INTEREST ON 8,750,000.000 UNITS
09/30/24 INTEREST RECEIVED 24,434.38
US TREASURY NOTE 0.875% 9/30/26
CUSIP 91282CCZ2
INTEREST ON 5,585,000.000 UNITS
09/30/24 INTEREST RECEIVED 70,562.50
US TREASURY NOTE 1.250% 3/31/28
CUSIP 91282CBS9
INTEREST ON 11,290,000.000 UNITS
09/03/24 INTEREST RECEIVED 85,250.00
US TREASURY NOTE 2.750% 2/28/25
CUSIP 9128283Z1
INTEREST ON 6,200,000.000 UNITS
09/16/24 INTEREST RECEIVED 28,039.50
USAA AUTO OWNER ABS 5.580% 5/15/28
CUSIP 90291VAC4
$0.00465/PV ON 6,030,000.00 PV
DUE 9/15/24
Attachment B
INVESTMENT AND INSURANCE PRODUCTS ARE:
• NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT, OBLIGATION OF, OR GUARANTEED BY ANY BANK OR BANKING AFFILIATE • SUBJECT TO INVESTMENT RISKS AND MAY LOSE VALUE, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED PAGE 35

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/25/24 INTEREST RECEIVED 21,493.34
VR FHLMC MULTIFAMI 3.224% 3/25/27
CUSIP 3137BXQY1
$0.00269/PV ON 8,000,000.00 PV
DUE 9/25/24
09/13/24 INTEREST RECEIVED 28,070.00
VR JPMORGAN CHASE & 2.005% 3/13/26
CUSIP 46647PBH8
INTEREST ON 2,800,000.000 UNITS

OTHER CASH RECEIPTS
09/04/24 ADDITION TO ACCOUNT 50,000,000.00

CONTRIBUTION TO FUND ACCOUNT
09/26/24 ADDITION TO ACCOUNT 50,000,000.00

CONTRIBUTION TO FUND ACCOUNT

CALIFORNIA ASSET MANAGEMENT TRUST
================================================================================================================= ENDING BALANCE 0.00 1,030,097,096.02
¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
Attachment B
"Principal® I Custody V Solutions
Attachment 3
Department/Item
Source of
Funds
Use of
Funds Explanation
Non-Departmental - Materials,
Services and Supplies
11,200 Increases the Materials, Services and Supplies
appropriation in the Non-Departmental budget to
fund the final task required to retire the City's legacy permitting system, Tidemark. The last task required
to migrate the City completely to Accela is to
transfer parcel data and dcouments from Tidemark
to Laserfiche. This final migration will allow for the
Community Development Department's Building
and Planning Divisions to research proposed
developments and respond to public record
requests related to the development process (five
affirmative Council votes required for the use of
unused balances).

Technology Fee Reserve (11,200) Decreases the Technology Fee Reserve to offset the cost of the final taks required to retire the City's legacy permitting system, Tidemark, described
above (five affirmative Council votes required
for the use of unused balances).

Other Agencies Revenue
(Wildland Deployment
Reimbursements) / Fire
Department
148,785 148,785 Recognizes Cal OES reimbursements for wildland deployments in 2024 for the Thompson, Bogus, and
Pay fires as well as OES Preposition incidents and
appropriates the funding to the Fire Department to
cover the associated costs (five affirmative
Council votes required to appropriate additional
revenue).
148,785 148,785
Department/Item
Source of
Funds
Use of
Funds Explanation
Other Agencies Revenue /
2023 County of Santa Clara
Emergency Medical Services
Grant
31,125 31,125 Recognizes and appropriates $31,125 in additional grant funding to increase the 2023 Emergency
Medical Services County Patient Care System grant
from $51,446 to $82,571. The additional funding will
cover costs for the Fire Department equipment and
controlled substance storage and dispensing
devices (five affirmative Council votes required
to appropriate additional revenue).
31,125 31,125
General Fund (001)
FY2024/25 Budget Amendments
Fire Operating Grant Trust Fund (178)
1 Attachment 3
FY2024/25 Budget Amendments
Department/Item
Source of
Funds
Use of
Funds Explanation
Other Revenue / Senior
Center’s Health & Wellness
Case Management Program
and Reed & Grant Sports Park
3,132 3,132 Recognizes and appropriates donations to support the following programs and activities: Senior Center
activities ($2,000 from Velda Lavato), Senior Center
Health & Wellness program ($500 from the Santa
Clara Historic Home Tour), and new equipment for
the Reed & Grant Sports Park ($632 from the Santa
Clara Youth Soccer League) (five affirmative
Council votes required to appropriate additional
revenue).
3,132 3,132
Department/Item
Source of
Funds
Use of
Funds Explanation
Storm Drain System
Improvements Project
25,856 Increases the Storm Drain System Improvements
Project to set aside funds to address storm drain
system capacity deficiencies, funded by previously
collected storm drain outlet fees (five affirmative
Council votes required for the use of unused
balances).

Unrestricted Ending Fund
Balance
(25,856) Decreases the Unrestricted Ending Fund Balance, storm drain outlet fee to offset the action above
(five affirmative Council votes required for the
use of unused balances).
- -
Storm Drain Capital Fund (535)
Public Donations Fund (067)
2 City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
24-832 Agenda Date: 12/3/2024

REPORT TO COUNCIL

SUBJECT
Action on the City of Santa Clara Audited Annual Comprehensive Financial Report and Audited Silicon Valley Power Financial Statements for Fiscal Year Ended June 30, 2024, as Recommended by the Audit Committee

COUNCIL PILLARS
Enhance Community Engagement and Transparency
Promote Sustainability and Environmental Protection

BACKGROUND
On November 21, 2024, the Audit Committee took action to accept the City of Santa Clara Audited Annual Comprehensive Financial Report (ACFR) and Silicon Valley Power (SVP) Financial Statements for Fiscal Year Ended June 30, 2024 and referred the reports to the City Council to be noted and filed at the December 3, 2024 Council meeting.

The annual financial audit is a requirement of Section 1319 of the City Charter. The ACFR presents the audited financial information of the City in accordance with Generally Accepted Accounting Principles (GAAP) applicable to government entities, and it also provides the City Council valuable information for financial oversight and informs Santa Clara residents and businesses as well as creditors.

The separate audited annual financial report for SVP is presented to make available additional information and disclosure relevant to the electric industry. The unmodified opinions from the auditor enhance the SVP’s reputation, and its adherence to GAAP applicable to governmental entities.

DISCUSSION
The annual financial audit of the City was recently completed and the City’s external auditor, Maze & Associates (“Maze”), issued an unmodified (“clean”) opinion on the City’s ACFR for fiscal year ended June 30, 2024. The ACFR includes an extensive discussion and presentation of the City’s financial data and its related agencies in accordance with GAAP. The ACFR also includes selected multi-year statistical information about the City. In addition, the City issued a separate, audited comparative financial statement report for SVP for fiscal year ended June 30, 2024.

City Finance staff prepares the financial statements and Maze audits the financial information contained within them. Part of the audit is to determine whether City staff have the appropriate skills, knowledge, and expertise to prepare the ACFR in accordance with GAAP and other reporting requirements. Based on their audit, Maze determined that the City’s Finance staff has the necessary skills, knowledge, and expertise to compile high quality reports.

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24-832 Agenda Date: 12/3/2024
Overall, the City’s financial condition was solid at the end of the fiscal year 2023/24. Key financial highlights for fiscal year June 30, 2024 are as follows:
· The assets and deferred outflows of resources of the City, as a whole, exceeded its liabilities and deferred inflows of resources by $2.6 billion in fiscal year 2023/24. · The City’s total net position increased by $313 million and primarily includes a $33 million increase in the governmental activities and a $280 million increase in business activities. · At the close of fiscal year 2023/24, the General Fund had assets of $457 million and a fund balance of $181 million. This represents an increase in fund balance of $28 million, or 18.3% from the prior fiscal year. The increase reflects the modest growth of the local economy since the pandemic.
· The City’s total outstanding long-term debt decreased by $18 million during the current fiscal year primarily due to the repayment of Stadium Authority debt, Electric revenue bonds, and Sewer loans partially offset by the issuance of $36 million in Sewer Certificates of Participation.
· The City’s total net pension liability, which includes governmental activities and business-type activities, increased by $24 million to $686 million at June 30, 2024. The changes were mainly due to the change in the differences between expected and actual experience liability claims.

The City is a member of the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public entities within the State of California.

City staff and Maze met with the City Council Audit Committee on November 21, 2024. Committee members Watanabe, Jain and Park attended the meeting during which Maze gave a presentation about the audit process, scope of work, and the auditor’s opinion. The Director of Finance and staff gave an overview of the financial reports. Maze and staff responded to Committee member questions. The Audit Committee accepted the ACFR and SVP Financial Statements presented at the Committee meeting and recommended that the City Council note and file the reports at a December 3, 2024 Council meeting.

ENVIRONMENTAL REVIEW
There is no action being taken; therefore, the California Environmental Quality Act (CEQA) is not applicable.

FISCAL IMPACT
The staff and the external auditor costs associated with the audit and financial reports production are included in the annual appropriations.

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24-832 Agenda Date: 12/3/2024

RECOMMENDATION
Note and file, as recommended by the Audit Committee:

1. The audited City of Santa Clara Annual Comprehensive Financial Report (ACFR) for fiscal year ended June 30, 2024; and

2. The audited City of Santa Clara Electric Utility Enterprise Fund (Silicon Valley Power) Financial Statements for fiscal year ended June 30, 2024.

Reviewed by: Kenn Lee, Director of Finance
Approved by: Jovan D. Grogan, City Manager

ATTACHMENTS

1. Annual Comprehensive Financial Report (ACFR)

2. Silicon Valley Power (SVP) Financial Statements
City of Santa Clara Page 3 of 3 Printed on 11/27/2024
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Annual Comprehensive
Financial Report
Fiscal Year Ended June 30, 2024
City of
Santa Clara The Center of What's Possible

ANNUAL COMPREHENSIVE FINANCIAL
REPORT
FISCAL YEAR ENDED JUNE 30, 2024
THE

MISSION CITY

CITY OF SANTA CLARA, CALIFORNIA
1500 WARBURTON AVENUE
SANTA CLARA, CA 95050-3796

PREPARED BY DEPARTMENT OF FINANCE

Introductory Section

CITY OF SANTA CLARA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

TABLE OF CONTENTS
For the year ended June 30, 2024
Page
i

INTRODUCTORY SECTION
Letter of Transmittal .......................................................................................................................................... v Roster of Council and Commission Members ................................................................................................ xiv Executive Management Team .......................................................................................................................... xv GFOA Certificate of Achievement ................................................................................................................. xvi Organization Chart ......................................................................................................................................... xvii Local Map ..................................................................................................................................................... xviii

FINANCIAL SECTION
Independent Auditor’s Report on Basic Financial Statements .......................................................................... 1 Management’s Discussion and Analysis ............................................................................................................ 5 Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ........................................................................................................................... 28 Statement of Activities ............................................................................................................................... 30 Fund Financial Statements
Governmental Funds
Balance Sheet.............................................................................................................................................. 34 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................ 37 Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................................... 38 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ....................................................................... 42 Proprietary Funds
Statement of Net Position ........................................................................................................................... 44 Statement of Revenues, Expenses, and Changes in Fund Net Position ...................................................... 48 Statement of Cash Flows ............................................................................................................................ 50 Fiduciary Funds
Statement of Fiduciary Net Position ........................................................................................................... 56 Statement of Fiduciary Net Position ........................................................................................................... 57 Notes to Basic Financial Statements ................................................................................................................ 59

CITY OF SANTA CLARA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

TABLE OF CONTENTS
For the year ended June 30, 2024
Page
ii
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios (Miscellaneous Plan) .................. 154 Schedule of Plan Contributions (Miscellaneous Plan).............................................................................. 156 Schedule of Changes in the Net Pension Liability and Related Ratios (Safety Plan) .............................. 158 Schedule of Plan Contributions (Safety Plan) .......................................................................................... 160 Schedule of Changes in the Net OPEB Liability and Related Ratios (OPEB Plan) ................................. 162 Schedule of Plan Contributions (OPEB Plan) .......................................................................................... 163 Notes to Schedule of Employer Contributions (OPEB Plan) ................................................................... 164 General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Non-GAAP Legal Basis) ......................................................................................................................... 165 Santa Clara Housing Successor Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Non-GAAP Legal Basis) .......................................................................................... 167 Notes to Required Supplementary Information ........................................................................................ 168 Supplementary Information
Non-Major Governmental Funds
Combining Balance Sheet ......................................................................................................................... 174 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................ 178 Special Revenue Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Non-GAAP Legal Basis) ...................................................................................................... 182 Non-Major Enterprise Funds
Combining Statement of Net Position ...................................................................................................... 184 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................................. 188 Combining Statement of Cash Flows ....................................................................................................... 190 Internal Service Funds
Combining Statement of Net Position ...................................................................................................... 196 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................................. 200 Combining Statement of Cash Flows ....................................................................................................... 202 Private Purpose Trust Funds
Combining Statement of Net Position ...................................................................................................... 208 Combining Statement of Changes in Net Position ................................................................................... 209 Custodial Funds
Combining Statement of Net Position ...................................................................................................... 210 Combining Statement of Changes in Net Position ................................................................................... 211

CITY OF SANTA CLARA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

TABLE OF CONTENTS
For the year ended June 30, 2024
Page
iii

STATISTICAL SECTION (UNAUDITED)
City of Santa Clara

1. Net Position by Component – Last Ten Fiscal Years .......................................................................... 216

2. Changes in Net Position – Last Ten Fiscal Years ............................................................................... 217

3. Fund Balances – Governmental Funds – Last Ten Fiscal Years ......................................................... 220

4. Changes in Fund Balances – Governmental Funds – Last Ten Fiscal Years ...................................... 221

5. Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ......................... 223

6. Property Tax Rates Direct and Overlapping Governments – Last Ten Fiscal Years........................... 224

7. Principal Property Tax Payers 2022-23 and 2013-14 Comparison for General Fund ........................ 225

8. Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................ 226

9. Principal Sale/Use Tax Contributors ................................................................................................... 227

10. Electric Utility Charge for Services by Source ................................................................................... 228

11. Ratios of Outstanding Debt by Type – Last Ten Fiscal Years............................................................ 229

12. Population and Assessed Valuation – Last Ten Fiscal Years ............................................................. 230

13. Computation of Direct and Overlapping Bonded Debt ...................................................................... 231

14. Legal Debt Margin Information – Last Ten Fiscal Years ................................................................... 232

15. Pledged Revenue Coverage Electric Revenue Bond – Last Ten Fiscal Years ................................... 233

16. Demographic and Economic Statistics – Last Ten Calendar Years.................................................... 234

17. Principal Employers – Current Year and Ten Years Ago ................................................................... 235

18. Full-Time Equivalent Budgeted City Employees by Program/Function – Last Ten Fiscal Years ..... 236

19. Operating Indicators by Function/Activity – Last Ten Fiscal Years .................................................. 237

20. Capital Assets Statistics by Function – Last Ten Fiscal Years ........................................................... 238

21. Statement of Insurance Coverage ....................................................................................................... 239 Successor Agency

1. Historical Tax Increment – Last Ten Fiscal Years ............................................................................... 243

2. Ten Largest Assessees – Taxable Value ............................................................................................... 244

3. Assessment Appeal Activity of Top 20 Assessees ............................................................................... 245

4. Computation of Direct and Overlapping Bonded Debt ........................................................................ 246 v
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1500 Warburton Avenue ● Santa Clara, CA 95050 ● Phone: 408-615-2340 ● Fax: 408-243-8687 ● SantaClaraCA.gov Finance Department
November 21, 2024
The Honorable Mayor and City Council and Residents of the City of Santa Clara City of Santa Clara
Santa Clara, CA 95050
Dear Mayor and Members of the City Council and Residents of the City of Santa Clara:

It is our pleasure to submit for your information the Annual Comprehensive Financial Report (ACFR) of the City of Santa Clara (City) for the fiscal year ended June 30, 2023. The City compiles and prepares the annual financial report to provide interested parties with reliable information concerning the financial condition and results of operations for the City.

Responsibility for the accuracy of the data and the fairness of presentation, including all footnotes and disclosures, rests with the City. Management of the City has established a comprehensive internal control framework that is designed to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal control has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Per the City Charter (Section 1319, Independent Audit) the City’s financial statements have been audited by Maze & Associates, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2023 are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended June 30, 2023 are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. v
City of
Santa Clara
The Center of What's Possible
vi
The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require that agencies expending more than $750,000 in federal monies, are required to have the independent auditor report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and legal requirements involving the administration of federal awards. These reports are available in the City’s separately issued Single Audit Report, scheduled for release in March 2025.

Management has provided a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). The letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.

This report is divided into three sections:
 The Introductory Section includes this letter of transmittal, an organizational overview of the City government, and prior awards received.
 The Financial Section consists of the independent auditor’s report, Management’s Discussion and Analysis, Basic Financial Statements (which include the Government-Wide Financial Statements, Fund Financial Statements, and Notes to Basic Financial Statements), Required Supplementary Information, and a Supplementary Section containing the Combined and Individual Fund Financial Statements and Schedules.
 The Statistical Section includes a number of tables of unaudited data depicting the financial history of the City, demographics, and other selected information about the City.

PROFILE OF THE CITY OF SANTA CLARA
The City is located in the County of Santa Clara, California, and is approximately 45 miles southeast of San Francisco and three miles west of downtown San Jose. It is situated in the northern part of the County and occupies approximately 19.3 square miles.

The City enjoys a diversified industrial and commercial base. Santa Clara is headquarters to some of the nation's leading electronics, telecommunications, computer, and semiconductor firms. The City is also home to a university, a community college, an adult learning center, a general hospital, a theme park, and a stadium.

The City’s population is estimated at 132,048 indicating the City remains an attractive place both to live and work. The City is one of the most highly desirable areas to live because of the high- quality services it provides to residents and its business friendly environment.

The City of Santa Clara, also known as the Mission City, is a charter city incorporated in 1852 under the laws of the State of California. The City’s powers are exercised through a Council/Manager form of government. The City Council is made up of the Mayor, elected at large, and six councilmembers elected by district serving as the legislative authority. The City Council appoints a City Manager who is responsible for the overall management and administration of the City, a City Attorney to represent and advise the City Council and all City officers in all matters of law pertaining to their offices, and a City Auditor to audit and approve all bills, invoices, payrolls, demands or charges against the City government before payment and, with the advice of the City Attorney, advise the City Council as to the regularity, legality and correctness of such claims, demands or charges. The Police Chief and the City Clerk are also publicly elected officials. vii
The City provides a full range of services. These services include police, fire protection and emergency dispatch; electric, water, and sanitary sewer services; the construction and maintenance of streets and infrastructure; parks and recreational activities and cultural events; planning and zoning; library; cemetery; and general administrative and support services.

LOCAL ECONOMY
The local economy continued to improve during fiscal year 2023-24 as the nation, State, and local economies continued to recover from COVID-19. On a national level, unemployment rates in June 2024 totaled 4.1%, an increase of 0.5% compared to the prior year. This rate is still below the record setting high of 14.8% in April 2020, and slightly above the pre-pandemic unemployment rate of 3.5%. The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) increased slightly from 3.7% in June 2023 to 4.2% in June 2024.

The City’s financial position has improved since the adoption of the fiscal year 2022-23 budget. Fiscal year 2023-24 saw the continued recovery of the impact of COVID-19 on the local economy. Strong Property Tax collections continued to reflect high assessed valuation growth due to property sales and new construction projects. Despite slowing growth due to higher interest and inflation rates, Property Tax remains the largest revenue category for the City’s General Fund. Sales Tax exceeded pre-pandemic levels, reflecting both a local recovery and the impact of inflation on the prices of goods for which this tax is applied. The City continued budget balancing efforts during the fiscal year in part through the use of onetime reserves, expenditure reductions, and new revenues. As the City looks ahead, the City Council amended a balanced fiscal year 2024-25 Operating Budget and approved a two-year fiscal year 2024-25 and 2025-26 Capital Budget. Forecasts currently show a small deficit beyond the two-year budget.

Significant funding gaps for certain capital infrastructure needs have been identified. A total of $626 million of unfunded projects which include the City’s parks, fire stations, transportation, storm and other city infrastructure over the next five-years. A workplan considering several options of new revenues is underway including a $400 million General Obligation Bond Measure that voters passed in November 2024.

FINANCIAL INFORMATION
Long-term Financial Planning
The City Council has adopted key Council Strategic Pillars to guide long-term policy decisions and address the economic challenges that the City faces. The Council Strategic Pillars are:
 Promote and Enhance Economic, Housing and Transportation Development  Deliver and Enhance High Quality Efficient Services and Infrastructure  Enhance Community Sports, Recreational and Arts Assets  Enhance Community Engagement and Transparency
 Ensure Compliance with Measure J and Manage Levi’s Stadium  Manage Strategically Our Workforce Capacity and Resources viii
 Promote Sustainability and Environmental Protection
In addition, the City produces an annual Ten-Year Financial Forecast. The purpose of the Forecast is to provide policy-makers and the public an updated assessment of the City’s fiscal health that takes into account the latest economic developments. The report includes historical perspective on revenues and expenditures and a ten-year financial outlook beyond the adopted budget year. The value of this type of analysis is to give the City Council, staff, and the public a tool to assist with strategic decision-making as they work to adopt the budget for the coming year. The Forecast is a collaborative effort between the City Manager’s Office, Finance Department, and City departments. Individual projections of revenues and expenditures are developed based on trend analyses, input from available economic reports, consultant recommendations, and input from other subject matter experts. The most current information available is incorporated into the Plan and refined on a moving forward basis as part of the City’s commitment to fiscal responsibility.

The Forecast does not include the following:
 One-time funding sources and one-time expenditure needs;  The cost to address unmet/deferred capital infrastructure needs;  Potential additional revenue from the Stadium (performance rent/excess revenue) and the Related project (future project phases);
 Revenue and staffing impacts of development projects; and  Additional contributions to Reserves (Budget Stabilization Reserve, Capital Projects Reserve, Pension Reserve).

Historically, the City has funded many of capital infrastructure and equipment needs with one-time funds on a pay-as-you-go basis. The use of one-time funds as the funding mechanism for capital improvements and various equipment that rely on the General Fund creates challenges. The lack of sufficient one-time funding has resulted in a backlog of unmet/deferred infrastructure needs. As part of the budget process, in May 2024, staff presented an updated unmet/deferred infrastructure need of over $626 million over the next five-years. Staff will continue to evaluate potential options to create capacity to address those funding.

In addition to the elements described above that are not factored into the Forecast, the City has identified various factors that could have potential positive or negative impacts on the Forecast. These include:
 Future economic slowdown/recession;
 Re-assessment of properties for property tax purposes;  State/federal legislative changes and legal challenges;  Labor costs outside the budget assumptions;
 CalPERS actuarial changes or reform actions;
 Unanticipated critical capital/infrastructure needs; and  Maintenance impacts and timing of development projects. ix
The City’s financial position has significantly improved since the adoption of the fiscal year 2024-25 budget. The latest Ten-Year General Fund Forecast, updated in April 2024, shows smaller deficits of $6.0 million and $11.9 million in fiscal year 2025-26 and fiscal year 2026-27. The out-years of the forecast shows shortfalls ranging from $6.0 million to $19.3 million which equates to 1.9% to 5.0% of expenditures annually.

While we continue to face a structural budget imbalance, impacts from the pandemic, and significant recovery has been achieved. As we look ahead, additional work efforts will be needed to generate new revenues, reduce costs, or use reserves to balance the forthcoming budget.

Internal Controls
The management of the City is responsible for establishing and maintaining internal controls designed to ensure that the assets of the City are protected from loss, theft or misuse, and that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the stated framework. City management believes the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

Budgetary Controls
As part of the City's internal controls, it maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annually appropriated budget approved by the City Council. In addition, a two-year Capital Improvement Project Budget or a two-year Operating Budget is adopted annually and a Ten-Year Financial Forecast is updated and presented as part of the budget each year. The City Council is responsible for approving the appropriation of fiscal resources to cover estimated expenditures for each fiscal year. Expenditures are appropriated in each fund to departments, offices, and agencies for various goods, services, and capital projects described in the budget.

The legal appropriation control is established at the department level in each fund. For select funds where expenditures are not allocated to a specific department, the appropriation control is established at the fund level. For capital funds, the appropriation control is at the project level. Transfers of funding between budgetary funds require City Council appropriation and approval. City Council approval is required for a budget amendment during the fiscal year which may include the use of reserves or fund balances, and approval of appropriations of grant monies. The City also maintains an encumbrance accounting system as one technique for accomplishing budgetary control. Encumbrances outstanding at year-end are included within the specific fund balance category of the underlying resource. Per Article XIII, Section 1305 of the City Charter, appropriations lapse at the end of each fiscal year; therefore, unencumbered funds allocated for specific projects, donations, and grants require City Council appropriation for use in the following fiscal year.

Budgetary transfers between accounts or expenditure category may be done through Finance Department as long as they are conducted within the legal appropriation control limit set by the City Council.

Independent Audit
The City Charter and State of California statutes require the City to have an annual audit by an independent certified public accountant. The City goes to the market with a formal Request for Proposal for audit services every five years. The accounting firm of Maze & Associates, Certified Public Accountants, was selected by the City Council again in 2021 after the City conducted a competitive procurement process. x
This is the third year of audit in the new contract with Maze & Associates. In addition to meeting the requirements set forth in the City Charter and State statutes, the audit is designed to meet the requirements of the federal Single Audit Act of 1984, as amended in 1996 and by the recent Uniform Guidance. The auditors' report on the basic financial statements and the supplementary combining statements and schedules are included in the financial section of this report. The auditors' reports related specifically to the single audit are included in a separately issued single audit document on file with the City Clerk’s Office.

MAJOR INITIATIVES
Addressing our Capital Infrastructure
Looking ahead, the City Council took action to adopt a two-year capital investment plan that focuses on our capital infrastructure, supporting the facilities that serve our residents and community. The Biennial fiscal year 2024-25 and 2025-26 Capital Budget totals $928 million and the Five-Year CIP totals $1.33 billion, supporting infrastructure improvements throughout the City. Of this CIP amount, $1.1 billion (83%) funds capital projects for the City’s utilities and there is sufficient funding in the associated utility funds to support these projects. The other projects total $225 million and fund improvements to the parks, trails, libraries, transportation system, storm system, convention center and other City facilities. There are significant funding gaps in these areas and unfunded projects identified in this budget total $626 million over the next five years. This funding gap does not fully represent all the unmet/deferred infrastructure needs throughout the City beyond the five-year CIP period. Long term funding strategies are needed to meet these infrastructure needs as the General Fund does not have sufficient funding to cover the significant unfunded capital costs. New funding strategies are needed to meet these infrastructure needs. After an analysis of potential options, the City Council approved the inclusion of a $400 million General Obligation Bond measure on the November 2024 ballot and voters passed the measure with a two-thirds majority.

Fiscal Sustainability
The fiscal year 2023-24 General Fund balancing strategy adopted as part of the fiscal year 2024-25 and 2025-26 biennial budget remains in place. The use of one-time reserves and federal stimulus funds, new revenues, and expenditure reductions has balanced the competing goals of aligning ongoing revenues and expenditures and minimizing the service delivery impacts to the community. It has also allowed time for General Fund revenues to recover. This strategy has positioned the City well with the balanced fiscal year 2024-25 budget. While the financial picture is much better, it is important to note that significant economic uncertainty persists.

Development Projects
More than $3 billion in new development projects are on the horizon for Santa Clara in the next few years, with the likelihood of more to come. There are many residential and commercial projects in various stages of planning. While some of these projects are underway, it is important to note that changes in the office environment due to new remote-work trends has caused some pause to activity as developers reassess demand for commercial projects. Furthermore, the recent continuation of elevated inflation impacts to construction costs and high interest rates resulting in higher borrowing costs creates a potential for a slowdown in development activity. As these projects are both sensitive to new community requirements and an economic downturn: therefore, flexibility will be required. Below are highlights of a few of the larger planned projects:
xi
Related Santa Clara Project
Related Santa Clara is a unique partnership between the City of Santa Clara and Related Companies to create a LEED-certified, multi-phased, mixed-use destination adjacent to Levi’s Stadium. This urban center will incorporate residential units, restaurants, entertainment venues, hotels, retail, and office space to establish a new neighborhood in a pedestrian oriented “live, work, play” environment.

Related Santa Clara consists of 9.2 million square feet of mixed-use development with a city center of commercial office, retail/entertainment including a globally inspired food market, 1,680 residential units, 700 hotel rooms and approximately 5 million square feet of corporate office space. The development will also feature new roadways and the creation of a 30-acre city park. The project site consists of 240 acres located at 5155 Stars & Stripes Drive in Santa Clara, CA.

Downtown Master Plan
The City of Santa Clara is in the process of planning for the revitalization of our Downtown by developing a Precise Plan that will provide guidance for new development within a portion of the Downtown Focus Area. Following an initial community engagement effort, three land use scenarios/conceptual plans have been developed. Additional review and testing of the land use/design options, a larger context study to understand compatibility and competition from other large development projects, and an El Camino Real intersection study to understand multi modal connectivity from regional transit to downtown will be performed. This work will focus on market feasibility, retail strategy and connectivity.

Freedom Circle Mixed Use Project
This project proposes a General Plan Amendment and Re-zoning to Planned Development to construct a mixed-use development project on a 13.3 acre site within the Freedom Circle focus plan area, that consists of up to 1,100 residential units With 1,540 parking spaces, up to 2,000 square feet of commercial space with 10 parking spaces and a two-acre public park.

Gateway Crossing Mixed Use Project
Developed by Hunter/Storm, this project currently under construction consists of up to 1,565 residential units, a 152,000 square foot, 225 room, full-service hotel, 45,000 square feet of supporting retail, a 2.1 acre park, structured parking facilities, private and public streets, and on and off-site public and private improvements. This project is currently under construction.

Mission Point by Kylii Mixed Use Development Project
This project is in review for a General Plan amendment for a nine-parcel property to amend the designation from High-Intensity Office/Research to a newly-established mixed-use designation allowing a high-intensity mix of office, commercial, and residential uses. The Project proposes a rezone for the development of 3,000,000 +/- square feet of commercial office/lab space, 100,000 +/- square feet of neighborhood retail, 1,800 +/- new multi-family residential, a childcare facility, and indoor and outdoor community spaces, as well as a large network of diverse, accessible and interconnected park, trail, and open spaces, and related infrastructure improvements.

Patrick Henry Drive Specific Plan
The City has developed a Specific Plan to implement the City’s General Plan goals and policies for the Patrick Henry Drive plan area by providing more detailed guidance for future land uses and urban design xii
elements. The vision is to transform a series of 1970s office parks several existing office parks into a cohesive, high-density mixed-use community that fosters economic vitality, helps ameliorate the State’s housing shortage, and enhances quality of life for those who live, work, and recreate in the area. The Patrick Henry Drive Specific Plan planning area encompasses approximately 74-acres of land bounded by Calabazas Creek, Mission Community College, Great America parkway, and the SFPUC right of way, as shown below.

Lawrence Station Area Plan
The Lawrence Station Area Plan provides a mixed-use development on an approximately 72 acres site (65 acres of developable land area excluding existing public right-of-way) located in close proximity to the Caltrain Lawrence Station serving the communities of Santa Clara and Sunnyvale. The Plan creates a lively neighborhood that accommodates up to 3,500 residential dwelling units, roughly 100,000 square feet of neighborhood oriented and convenience retail, and approximately 6.3 acres of public open space in conjunction with various outdoor recreational facilities and landscape features, such as a community garden, a public plaza, pocket parks and paseos. The targeted residential density is 45 - 56 dwelling units per acre. While substantial completion of this development was achieved the continuation of the full buildout of this plan is underway. Associated infrastructure improvements were completed, including an internal road network comprised of public and private streets, and upgrades to sewer, water, and storm drain systems.

Tasman East Specific Plan
The project area is an existing industrial neighborhood 45 acres in size, and is bounded by Tasman Drive to the south, the Guadalupe River to the East, the Santa Clara golf course to the north, and Lafayette Street to the west. The Plan creates a framework for the development of a high-density and transit-oriented neighborhood (currently proposed to be up to 100 Dwelling units per acre), along with supportive retail services. The specific plan will lay out allowed uses, densities, height limits and design criteria in the Tasman East area. Connections to the existing Guadalupe River trail, potential locations for parkland, and strategies for better access to transit will also be incorporated into the plan. The City is currently developing an amendment to the Tasman East Specific Plan that would allow an additional 1,500 units within the existing Specific Plan boundaries. City staff are currently exploring ways to provide additional dedicated parkland as a part of the Amendment.

FINANCIAL POLICIES
The City has adopted a comprehensive set of financial policies. These policies address items such as budget, cash management, interfund loans, investments, reserves, and debt management. The City Council reviews and approves budgetary policies as part of the annual budget process. Investment and debt policy statements are reviewed and approved by the City Council under separate cover.

AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement in Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports and is valid for a period of one year only. The City has received this prestigious award for the past thirty two consecutive years.

To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This repo1t must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Programs' requirements and we are submitting it to GFOA to determine its eligibility for another ce1tificate.

ACKNOWLEDGEMENTS
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Depattment. We wish to thank all City departments for their assistance in providing the data necessary to prepare this report. Credit and thanks are also due to the Mayor and City Council members for their unfailing suppo1t for maintaining the highest standards of professionalism in the management of the City's finances.

Kenn Lee
Director of Finance
xiii
xiv
Roster of Council and Commission Members

ROSTER OF COUNCIL AND COMMISSION MEMBERS

CITY COUNCIL
Mayor Lisa M. Gillmor
Councilmember District 1 Kathy Watanabe
Councilmember District 2 Raj Chahal
Councilmember District 3 Karen Hardy
Councilmember District 4 Kevin Park
Councilmember District 5 Sudhanshu “Suds” Jain
Councilmember District 6 Anthony J. Becker

BOARD OF LIBRARY TRUSTEES CIVIL SERVICE COMMISSION
Jonathan Evans, Daniel Huynh, Ghouse Salim
Monammed, Stephen Ricossa, Debbie Tryforos,
Ron Billingsley, Wesley Dudzinski, Franklin J.

Felizardo, Samuel Pumarejo, Arti Purohit

CULTURAL COMMISSION HISTORICAL AND LANDMARKS

COMMISSION
Candida A. Diaz, Neetu Garg, Jonathan Marinaro,
Paul McNamara, Abinas Roy, Louis Samara,
Debra von Huene,
Michael Celso, , Ivonne Inciarte, Amy Kirby,
Patricia Leung, Kathleen Romano, Ed Stocks,
Ana Vargas-Smith

PLANNING COMMISSION PARKS AND RECREATION COMMISSION
Yashraj Bhatnagar, Mario Bouza, Nancy A.

Biagini, Priya Cherukuru, Eric Cruthchlow, Qian
Huang, Lance Saleme
Dana Caldwell, Maureen Reilly Chu, Derek
DeMarco, Eversley Forte, Vikas Gupta, Sajid
Hai, Brittany Ricketts

SENIOR ADVISORY COMMISSION

SALARY SETTING COMMISSION
Rick Andrews, Edmund Drozek, Tom Freitas,
Judy Hubbard, Srinivasan Manivannan, Veena
Sterling, Maria Vaz
Natasha Humphries, MV Kumar, Donald
Lawson, John Sontag, Vacant

YOUTH COMMISSION
Julianna Arias Hernandez, Allysa Domensino,
Mateo Espinal (Alternate), Namita Gaidhani,
Simren Garg, Srikha Gopisetti, Maryam Ismail,
Neha Israni, Ryan Kim, Rebecca Kunze, Kira
Liang, Malia Martin, Samaira Mehta, Hiranya
Parekh, Brian Rong, Samarth Suresh, Niharika
Uppalapati (Alternate), Aneesha Vemu
(Alternate)

DOWNTOWN COMMUNITY TASK FORCE
Butch Coyne, Rob Mayer, Dan Ondrasek,
Mathew Reed, Chan Thai, Adam Thompson,
Ana Vargas-Smith, Atisha Varshney, Debra Von
Huene
xv

EXECUTIVE MANAGEMENT TEAM

CITY MANAGER
Jōvan D. Grogan

CITY ATTORNEY CITY AUDITOR
Glen Googins Vacant

CITY CLERK
Hosam Haggag

CHIEF OPERATING OFFICER
Nadine Nader

ASSISTANT CITY MANAGER ASSISTANT CITY MANAGER
Clarence Baker Cynthia Bojorquez

CHIEF OF POLICE FIRE CHIEF
Pat Nikolai Ruben Torres

DIRECTOR OF HUMAN RESOURCES DIRECTOR OF FINANCE
Aracely Azevedo Kenn Lee

INTERIM DIRECTOR OF PARKS & RECREATION DIRECTOR OF INFORMATION TECHNOLOGY Cynthia Bojorquez Gaurav Garg

CITY LIBRARIAN CHIEF ELECTRIC UTILITY OFFICER
Patty Wong Manuel Pineda

DIRECTOR OF WATER AND SEWER UTILITIES DIRECTOR OF PUBLIC WORKS Gary Welling Craig Mobeck

INTERIM DIRECTOR OF COMMUNITY

DEVELOPMENT
Reena Brilliot
Executive Management Team
xvi
GFOA Certificate of Achievement

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Santa Clara
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
xvii
Organization Chart

CITY ORGANIZATION CHART
Chief of Police (Elected)
Boards and
Commissions
City Attorney
--------- Police
Community
Development
Electric Utility
Finance
Fire
Human Resources
Electorate
Mayor and Council City Clerk (Elected)
City Manager City Auditor
City Departments
City Clerk's Office -----------·
Information Technology
Library
Parks and Recreation
Public Works
Water and Sewtr
Utilities
xviii
Local Map

I BAY AREA
\
10 --==Miles
0 5
,....
_,...
-
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Financial Section
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Santa Clara, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Santa Clara, California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents. We did not audit the component unit financial statements of the Santa Clara Stadium Authority (Stadium Authority), as of and for the year ended March 31, 2024, which is both a major fund and 39.6%, 6.9%, and 9.3% of the assets, net position and revenues, respectively, of the business-type activities. The financial statements of the Stadium Authority were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Stadium Authority, is based solely on the report of other auditors.

We also did not audit the financial statements of Northern California Power Agency (NCPA), Transmission Agency of Northern California (TANC), M-S-R Energy Authority (MSR EA), M-S-R Public Power Agency (MSR PPA), and San Jose-Santa Clara Regional Wastewater Facility and Clean Water Financing Authority (SJSC) as of and for the year ended June 30, 2024, related to the calculation of the Investments in Joint Ventures. The Investment in these Joint Ventures collectively represents 9.4%,

17.6%, and 1.7%, respectively, of total assets, net position and revenues of the business-type activities.

The financial statements of the NCPA, TANC, MSR EA, MSR PPA and SJSC were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the calculation of the Investments in Joint Ventures, is based solely on the reports of the other auditors.

In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1 Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
E [email protected]
w mazeassociates.com
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if, there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
2 Emphasis of Matters
As discussed in Note 6, the Stadium Authority restated balances related to the accounting and reporting of leases in the Santa Clara Stadium Authority Enterprise Fund as of March 31, 2023. In addition, the City determined that the Stadium Authority’s ground lease with the City is not subject to GASB 87, Leases, in the City’s Annual Comprehensive Financial Report and as a result, the Santa Clara Stadium Authority Enterprise Fund net position has been restated to reflect the elimination and reclassification of that transaction for reporting in the City’s financial statements. The emphasis of these matters does not constitute a modification to our opinions.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exits, we are required to describe it in our report.
3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 21, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
November 21, 2024
4 5
Management’s Discussion and Analysis
MANAGEMENT’S DISCUSSION AND ANALYSIS
The Management’s Discussion and Analysis (MD&A) of the City of Santa Clara’s (City) Annual Comprehensive Financial Report provides an overview of the City’s financial activities for the fiscal year ended June 30, 2024. The intent of this discussion and analysis is to look at the City’s financial performance. Readers should review the discussion and analysis in conjunction with the basic financial statements, as well as the notes to the financial statements to enhance their understanding of the City’s financial performance.

FINANCIAL HIGHLIGHTS
Financial highlights for fiscal year June 30, 2024 are as follows:
 In the fiscal year 2023-24, the City's assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $2.6 billion. Out of this amount, $107 million represents unrestricted net position, which is $176 million higher than in the fiscal year 2022-23.

This is made up of a negative balance of $282 million for governmental activities and a positive balance of $389 million for business-type activities. The negative net position in governmental activities primarily stems from a net pension liability of $538 million and a net Other Post Employment Benefits (OPEB) liability of $26 million as of June 30, 2024.  The City's total net position increased by $313 million, with $33 million increase in governmental activities, primarily driven by the steady economic growth since the pandemic. The remaining $280 million increase came from business-type activities, including a $222 million rise in the Electric Utility Fund, mainly due to higher rates and reduced resource purchase expenditures, and a $36 million increase in the Sewer Utility Fund, largely due to the higher equity income in the joint project with City of San Jose.
 The total net pension liability, encompassing both governmental activities and business-type activities, experienced an increase of $24 million or 3.6% during fiscal year 2023-24, reaching $686 million from $662 million. This increase was primarily driven by the change in the differences between expected and actual experience liability calculation. As of June 30, 2024, there were deferred outflows of resources related to pensions amounting to $169 million, reflecting a decrease of $7 million compared to the previous year. In contrast, there were deferred inflows of resources related to pensions totaling $4 million at June 30, 2024, which marked a decrease of $1 million from the prior fiscal year. For more detailed information regarding the net pension liability, please refer to Note 13.
 The net OPEB liability decreased by $2 million or 5.4% during fiscal year 2023-24, reducing it to $36 million at June 30, 2024, compared to $38 million in fiscal year 2022-23. More details on the net OPEB liability are included in Note 16.
 The City’s total liabilities, excluding net pension liability and net OPEB liability, increased by $12 million, reaching to $1,050 million as of June 30, 2024. The increase of the liabilities is mainly attributed to $32 million in accrued liabilities, partially offset by the net reduction/repayment of $18 million of long term obligations when compared to the fiscal year 2022-23.  As of June 30, 2024, the City’s governmental funds reported combined fund balances of $401 million, an increase of $32 million from the prior year. At June 30, 2024, $109 million is in the unassigned fund balance and available for spending at the City’s discretion.  At the close of fiscal year 2023-24, the General Fund had assets of $457 million and a fund balance of $181 million. This represents an increase in fund balance of $28 million, or 18.3% from prior fiscal year. The increase reflects the modest growth of the local economy since the pandemic. Of MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
6 the total fund balance, $144 million was unrestricted (the total of committed, assigned, and unassigned components of fund balance).
 In November 2012, the Santa Clara Stadium Authority (Stadium Authority) elected to adjust its fiscal year to April 1 through March 31 to conform with the fiscal year of Stadium Funding Trust (FinanceCo). This report covers the twelve month period from April 1, 2023 through March 31, 2024. As of March 31, 2024, the carrying value of Levi’s Stadium, net of depreciation, is $679 million, and the assets of the Stadium Authority exceeded its liabilities and deferred inflow of the lease revenues by $133 million.
 The City’s total outstanding long-term debt decreased by $18 million, primarily due to the repayment of $54 million for Stadium Authority debt, Electric revenue bonds, and Sewer loans partially offset by the issuance of $36 million in Sewer Certificates of Participation.

OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand the City as a whole. This report consists of six parts – introductory section, financial/MD&A section, basic financial statements, required supplementary information, supplementary information, and statistical section.

The basic financial statements include two types of statements that present different views of the City:
 The Government-wide Financial Statements provide both long-term and short-term information about the City’s overall financial status.
 The Fund Financial Statements focus on individual parts of the government, reporting the City’s operations in more detail than the government-wide statements.

Government-wide Financial Statements
Government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. They include the Statement of Net Position and the Statement of Activities.

The Statement of Net Position presents information on all of the government’s assets, deferred outflows of resources, liabilities and deferred inflows of resources. Over time, increases or decreases in the City’s net position may serve as an indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities provides information about the City’s revenues and expenses, regardless of the timing of related cash flows. The Statement of Activities explains in detail the change in net position for the fiscal year.

The Government-wide Financial Statements are divided into two categories:
 Governmental Activities—all of the City’s basic services are governmental activities. Included in basic services are the City Council, City Manager, City Clerk, City Attorney, Information Technology, Human Resources, Finance, Parks and Recreation, Library, Planning and Inspection, Public Works, Police, and Fire. These services are principally supported by taxes and intergovernmental revenues.

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
7  Business-Type Activities—unlike governmental services, these services are intended to recover all or a significant portion of their costs through user fees and charges. All the City’s enterprise activities are reported as business-type activities, including the Major funds (Electric, Water, Sewer, Water Recycling utilities, and Stadium Authority) and Non-Major funds (Solid Waste, Cemetery, Santa Clara Convention Center, and Sports and Open Space Authority).

The City is the primary government in this report. These financial statements include four entities that, although legally separate, are important because they are blended component units of the City. These component units are the Santa Clara Stadium Authority, City of Santa Clara Sports and Open Space Authority, the Santa Clara Housing Authority, and the City of Santa Clara Public Facilities Financing Corporation. These component units have been included as an integral part of the City (that is, they have been “blended” with those of the City) and they are not reported as separate discrete component units in these financial statements.

Fund Financial Statements
The Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. Each major fund is presented individually, with all non-major funds combined in a single column on each fund statement. The non-major fund statements are presented in the Supplementary Information section of this report. Major funds present the primary activities of the City for the year and may change from year to year as a result of changes in the pattern of the City’s activities. All the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds: Most of the City’s basic services are included in Governmental Funds which focus on how money flows into and out of these funds and the balance left at fiscal year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental funds statements provide a detailed short-term view of the City’s general governmental operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. Because the focus of governmental funds is narrower than that of the Government-wide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government-wide Financial Statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

Proprietary Funds: Enterprise and Internal Service Fund Financial Statements are prepared on the full accrual basis of accounting, similar to that used by private sector companies. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Revenues, Expenses, and Changes in Net Position. The City’s Proprietary Funds are the same as the business-type activities reported in the Government-wide Statements but provide more detail and additional information, such as cash flows.

Since the City’s Internal Service Funds provide goods and services only to the City’s governmental and business-type activities, their activities are only reported at the fund level. Internal Service Funds cannot be considered major funds because their revenues are derived from other City funds. Revenues between funds are eliminated in the Government-wide Financial Statements and any related profits or losses are MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
8 returned to the activities in which they were created, along with any residual net position of the Internal Service Funds.

Fiduciary Funds: Fiduciary Funds are prepared on the full accrual basis, similar to the Proprietary Funds.

The City has three types of Fiduciary Funds: the Custodial Funds (which includes Employee Supplemental Funds, Special Assessments, and Custodial Deposits), and the Private Purpose Trust Funds (which includes the Charitable Trust and Successor Agency). The City’s fiduciary activities are reported separately in the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. These activities are excluded from the City’s Financial Statements because the City cannot use these assets to finance its own operations.

Notes to the Financial Statements
The notes provide additional information that is necessary to acquire a full understanding of the data provided in the Government-wide and Fund Financial Statements. The Notes to the Financial Statements follow the basic financial statements.

Other information
In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information. This information includes budgetary comparison schedules and the City’s progress in funding its obligation to provide pension and other post-employment benefits to its employees.

Required supplementary information can be found immediately following the Notes to the Financial Statements.

GOVERNMENT-WIDE FINANCIAL STATEMENTS ANALYSIS
Citywide Financial Statements
This section focuses on the City’s net position and changes in net position of its governmental and businesstype activities for the fiscal year ending June 30, 2024. As noted earlier, the City’s total assets and deferred outflows of resources exceed total liabilities and deferred inflows of resources by $2.6 billion at the end of the fiscal year, an increase in net position of $313 million.

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
9 2024 2023 2024 2023(1) 2024 2023(1)
Cash and investments 442 $ 407 $ 936 $ 746 $ 1,378 $ 1,153 $ Lease receivable 252 255 598 610 850 865
Other assets 134 140 549 490 689 624
Capital assets 652 669 1,498 1,470 2,167 2,122
Total Assets 1,503 1,448 3,581 3,316 5,084 4,764
Deferred outflows on derivative - - - 1 - 1
Deferred outflows from refunding - - 5 5 5 5
Deferred outflows OPEB related 1 2 - 1 1 3
Deferred outflows pension related 136 141 33 35 169 176 - -
Total Deferred Outflows of Resources 137 143 38 42 175 185 11 9 384 400 393 411
Right-to-use assets liability 9 9 4 5 13 14
Net OPEB liability 26 28 10 10 36 38
Net pension liability 538 517 148 145 686 662
Other liabilities 80 87 557 533 644 613
Total Liabilities 645 669 1,103 1,093 1,772 1,738
- - 12 23 12 23
Deferred inflows from refunding - - 1 1 1 1
Deferred inflows Lease related 246 251 582 600 828 851
Deferred inflows OPEB related 1 3 1 1 2 4
Deferred inflows pension related 3 4 1 1 4 5
Total Deferred Inflows of Resources 250 258 597 626 847 884 Net investment in capital assets 650 632 1,145 1,089 1,795 1,721 Restricted 343 353 385 332 738 675
Unrestricted (287) (282) 389 218 107 (69)
Total Net Position 721 $ 688 $ 1,919 $ 1,639 $ 2,640 $ 2,327 $ (1) Not restated for the changes dicussed in Note 6E.

Governmental Activities
Long-term debt outstanding
Business-Type Activities Total
Deferred inflows on derivative
instruments
Table 1
Governmental And Business-Type Net Position
(in millions)
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
10 The largest portion of the City’s net position, $1.8 billion (68%), is its investment in capital assets (e.g., land, infrastructure, buildings, machinery and equipment, right-to-use leased assets, and right-to-use SBITA), less any related outstanding debt that was used to acquire those assets and right-to-use liabilities.

The City uses these capital assets to provide services to its residents and other stakeholders. Accordingly, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources because the capital assets themselves cannot be used to liquidate these liabilities.

The restricted portion of the City’s net position of $738 million (28%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $107 million (4%) is unrestricted.

At the end of the current fiscal year, the City is able to report positive balances in all reported categories of net position except for the Information Technology Services Internal Service Fund and Workers’ Compensation Insurance Claims Internal Service Fund.

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
11 2024 2023 2024 2023 2024 2023
$ 63 $ 57 $ 1,040 $ 992 $ 1,103 $ 1,049
23 6 - - 23 6
11 9 3 2 14 11
62 64 - - 62 64
90 84 - - 90 84
22 19 - - 22 19
7 7 - - 7 7
33 30 - - 33 30
18 13 36 29 54 42
10 (6) 12 (4) 22 (10)
- - 19 9 19 9
10 10 - - 10 10
Other 12 43 - - 12 43
361 336 1,110 1,028 1,471 1,364
33 33 - - 33 33
1 1 - - 1 1
2 3 - - 2 3
2 2 - - 2 2
9 10 - - 9 10
46 45 - - 46 45
28 26 - - 28 26
98 88 - - 98 88
80 73 - - 80 73
19 19 - - 19 19
13 13 - - 13 13
- - 584 659 584 659
- - 58 49 58 49
- - 36 86 36 86
- - 9 7 9 7
- - 38 34 38 34
- - 1 1 1 1
- - 19 17 19 17
- - 91 62 91 62
313 331 836 915 1,167 1,228
23 30 274 113 304 136
3 5 (3) (5) - -
33 28 271 108 304 136
Restatement/Change in accounting principal - - 9 5 9 5
688 660 1,639 1,526 2,327 2,186
$ 721 $ 688 $ 1,919 $ 1,639 $ 2,640 $ 2,327
Expenses:

General Administration
City Clerk
City Attorney
Human Resources
Santa Clara Convention Center
Contribution in lieu of taxes
Investment earnings
Net increase (decrease) in fair value of investments
Planning and Inspection
Finance
Public Works
Parks and Recreation
Public Safety:

Police
Fire
Rents and royalties
Total revenues
Table 2
Governmental and Business-Type Changes in Net Position
(in millions)
Governmental Business-Type
Activities Activities Total
Charges for services
Capital grants and contributions
Operating grants and contributions
Revenues:

Program revenues:

General revenues:

Taxes:

Transient occupancy
Other
Ad valorem property
Sales
Transfers in (out)
Water Recycling
Solid Waste
Cemetery
Equity in income of joint ventures
Library
Utilities:

Electric
Net position - July 1
Net position - June 30
Santa Clara Stadium Authority
Increase in net position before transfers
Increase in net position
Total expenses
Water
Sewer
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
12 Governmental Activities – the City’s governmental activities boosted its net position by $33 million, mainly attributed to the higher revenue from charge for services and operational grants received from other agencies during the fiscal year 2023-24.

Business-type Activities – the City’s business-type activities contributed to an increase of $280 million in the City’s net position. This substantial growth is primarily due to a $220 million increase in the Electric Utility Fund, resulting from a higher charge for services resulting from an 5% rate increase effective July 1, 2023, and a 10% rate increase effective January 1, 2024, along with an $80 million reduction in resource purchase expenditures.

Governmental Activities
The chart below presents revenues by source for Governmental Activities. General revenues are composed of taxes and other revenues not specifically generated by, or restricted to, individual activities. All tax revenues and investment earnings are included in general revenues.

Sales taxes
17% Ad valorem property taxes
25%
Transient occupancy taxes
6%
Other taxes
2%
Investment earnings
8%
Contribution in lieu
9% Rents and royalties
3%
Program revenues
27%
Other revenues
3%
Sources of Revenue
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
13 The following analysis presents a comparison of fiscal year 2023-24 and fiscal year 2022-23 by the total cost and net cost of each of the City’s largest programs. Net cost is defined as total program cost less the revenues generated by those specific activities. It is common to see Governmental Activities as net cost generators, wherein costs of governmental activities are greater than the revenues they generate.

Total Cost
of Services
2024 2023 2024 2023
General Administration 33 $ 33 $ 8 $ 17 $
City Clerk 1 1 1 1
City Attorney 2 3 2 3
Human Resources 2 2 2 2
Finance 9 10 6 9
Public Works 46 45 15 26
Parks and Recreation 28 26 24 23
Public Safety:

Police 98 88 96 86
Fire 80 73 67 64
Planning and Inspection 19 19 (1) (3)
Library 13 13 13 13
Totals $ 331 $ 313 $ 233 $ 241
of Services
Net Cost
Table 3
Governmental Activities
(in millions)
In fiscal year 2023-24, the total cost of services increased by $18 million, while the net cost of services decreased $8 million compared to the previous year.

The increase in the total cost of services is largely driven by a $17 million rise in the Public Safety costs during fiscal year 2023-24. This growth is primarily attributed to a $11 million rise in CalPERS Safety pension expenditures and a $7 million increase in the personnel costs in the Fire Department compared to the prior year.

The net cost of services in the General Administration decreased $9 million from the prior year, reaching $8 million in fiscal year 2023-24. This decrease is primarily attributed to a $7 million increase in revenue from charges for services, resulting from the voter-approved change to the Business License Tax effective July 1, 2023. In Public Works, the net cost of services decreased by $11 million from the previous year, dropping to $15 million in fiscal year 2023-24, mainly due to a $10 million increase in grants received from other agencies.

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
14 Business-type Activities
The following analysis provides the total costs and net costs of each of the City’s enterprise funds. Net cost is defined as total program cost less the revenues generated by each enterprise fund.

Total Cost
of Services
2024 2023 2024 2023
Utilities:

Electric 584 $ 659 $ (200) $ (93) $
Water 58 49 2 (1)
Sewer 36 86 (32) 28
Water Recycling 9 7 - -
Solid Waste 38 34 (1) (2)
Cemetery 1 1 - 1
Santa Clara Convention Center 19 17 (1) (1)
Santa Clara Stadium Authority 91 62 6 (13)
Totals $ 836 $ 915 $ (226) $ (81)
of Services
Table 4
Business-Type Activities
(in millions)
Net Cost
In fiscal year 2023-24, the City's business-type total cost of services decreased by $79 million, leading to a $145 million reduction in the net cost of services.

The cost of services in the Electric Utility Fund decreased by $75 million to $584 million in fiscal year 2023-24. The decrease was driven by lower expenses for resource purchases. The net cost of services in the Electric Utility Fund is at negative $200 million, reflecting a $107 million reduction from fiscal year 2022-23. This decrease in net cost is primarily due to a $97 million increase in revenue on charges for services as a result of two phases of rate increases during the fiscal year.

The cost of services in the Sewer Utility Fund decreased by $50 million to $36 million. This reduction is primarily attributed to the prior year’s recognition of a $52 million equity loss in the sewer joint project with the City of San Jose. The net cost of services for the Sewer Utility fell to negative $32 million, marking a $60 million decrease from the previous year. This significant net cost change is primarily due to the $20 million equity gain in the sewer joint project with the City of San Jose, a stark contrast to the $52 million equity loss recognized in the prior year.

FUND FINANCIAL STATEMENTS
Financial Analysis of Governmental Funds
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the City’s governmental funds is to provide information on near-term inflows, MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
15 outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose.

At June 30, 2024, the City’s governmental funds reported a combined fund balance of $401 million, an increase of $32 million or 8.6% in comparison with the prior fiscal year. Approximately 27.3% or $109 million constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of the fund balance is either nonspendable, restricted, committed, or assigned to indicate that it is 1) not in spendable form, $6 million, 2) restricted for particular purposes, $168 million, 3) committed for particular purposes, $102 million, or 4) assigned for particular purposes, $16 million.

Governmental fund revenues were $375 million, reflecting an increase of $10 million, or 2.7%, from $365 million in the prior year. However, the other revenues decreased from $56 million in fiscal year 2022-23 to $9 million in fiscal year 2023-24, primarily due to reduced developer contribution in the park and recreation capital improvement fund and the City affordable housing fund. The overall revenue increase is mainly attributed to following factors:
 a $17 million or 131.1% increase in intergovernmental revenue largely due to a $11 million rise for Street and Highway development projects and a $7 million increase in Fire department grants.  a $16 million or 272.2% increase in unrealized gain from investment activities.  a $7 million or 12.5% increase in charges for services.  a $6 million or 7.2% increase in property tax revenues.  a $4 million increase in interest and rent driven by new ground leases effective from January 2023 and higher interest revenue compared to the previous fiscal year.  a $4 million increase in the contribution in-lieu tax from the Electric Utility Fund, resulting from higher charges for services due to rate increases.

Governmental fund expenditures were $343 million, reflecting an increase of $11 million or 3.3% compared to the prior year. The increase is primarily due to a $7 million increase in the personnel expenditure within the Public Safety program, and a $10 million increase in capital outlays for subscription-based IT arrangements for the City’s library and the transfer of land held for development in the Housing Successor fund to capital assets.

General Fund
Revenues
The City’s General Fund revenues totaled $311 million in fiscal year 2023-24, an increase of $36 million or 13.2% from the prior fiscal year.

Sales tax accounts for approximately 19.9% of the General Fund’s direct revenues. Sales tax revenue fell by $2.7 million, or 4.2% compared to the previous year, totaling $61.8 million. The decline was primarily due to an economic contraction resulting from a mild recession during the current fiscal year.

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
16 Property tax (ad valorem) stands as the largest revenue source among General Fund revenues. In the fiscal year 2023-24, property tax revenues amounted to $91 million, reflecting an increase of $6.1 million, or a

7.2% growth from the previous year. This increase can be attributed to several factors, including reassessments following the sale of properties and the addition of new construction projects to the tax rolls.

These factors have collectively contributed to the continued rise in property tax revenue for the fiscal year.

Transient occupancy taxes (TOT) are calculated as a percentage of the charges for hotel and motel rooms within the city. In November 2020, Santa Clara voters approved to increase the Transient Occupancy Tax rate by up to 4%, and the first two percentage point increase went into effect on January 1, 2022. The City raised the rate from 11.5% to 12.5% in January 2024 from with the final one percentage point increase expected in January 2025, bringing the rate to 13.5%. The COVID-19 pandemic, along with related safety restrictions, significantly impacted TOT revenues towards the end of the fiscal year 2019-20 and throughout fiscal year 2020-21. However, fiscal year 2022-23 saw a notable recovery, which continued into 2023-24, with revenues increasing by $3.4 million, or 17.7%, compared to 2022-23, totaling $22.3 million. This growth is largely attributed to both the tax rate increase and the ongoing recovery from the pandemic.

Licenses, permits, fines and penalties revenues were $11.6 million in business licenses, parking permit, and miscellaneous permit in fiscal year 2023-24, compared to $6.6 million in the previous year. The 76.1% increase is attributed to the voter-approved change to the Business License Tax effective July 1, 2023, which updated the structure of the business tax and increased the amount of license and permit revenue.

Intergovernmental revenues were $0.9 million in fiscal year 2023-24 compared to $1.7 million in the previous year. The decrease is due to $0.8 million reduction in mutual aid reimbursement revenues for the fire departments and mandated reimbursement revenue for the police department when comparing to the prior year.

Charges for services, which excludes building development related activities, totaled $45.7 million in fiscal year 2023-24 compared to $42.1 million in the prior fiscal year, an increase of 8.6%. This increase is largely attributed to the ambulance transportation services and from service reimbursements related to the stadium events.

Contributions in-lieu of taxes were approximately $33.1 million in fiscal year 2023-24, a $3.6 million increase from the prior fiscal year. The increase is the result of higher consumption and retail rates.

Interest and rent revenues were $27.2 million in fiscal year 2023-24, reflecting a $3.9 million increase from the prior fiscal year. This increase was drive by higher interest rates and the addition of three new longterm ground leases with Related Santa Clara, LLC. effective January 1, 2023.

Expenditures
General Fund expenditures totaled $267 million for fiscal year 2023-24, 3.5% increase from the prior fiscal year total of $258 million. This amount excludes encumbrances, re-appropriations, and building related activities.

Salaries and benefits expenditures were $205 million in fiscal year 2023-24, a $7 million or 3.2% increase from the $198 million spent in the previous fiscal year 2022-23. The increase is primarily attribute to a $3.1 million increase in the police department, and $3.2 million increase in the general administration and public work departments.

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
17 Other operating expenditures, encompassing various categories such as materials, services, supplies, internal service fund charges, debt service, and minor capital outlays were $62 million in fiscal year 2023- 24, an increase of $2 million from the prior fiscal year. The increase can be primarily attributed to a $2 million increase in the internal service fund cost allocation.

The uses of the other financing sources for fiscal year 2023-24 were $16 million, reflecting a increase of $12 million when compared to the prior fiscal year. This increase can be primarily attributed to an increase of $6.3 million for the various governmental capital improvement projects and a one-time transfer of $3.5 million for radio replacement project.

Fund Balance
As of June 30, 2024, total fund balance in the General Fund was $181 million, up $28 million from the fiscal year 2022-23. Table 5A shows the breakdown of various components compared with the prior fiscal year.
2024 2023 Net Change
Nonspendable $ 3 6 $ 3 $
Restricted 25 32 7
Committed 18 18 -
Assigned 14 16 2
Unassigned 93 109 16
Total General Fund Balance $ 181 $ 153 $ 28
Table 5A
General Fund Balance for the Fiscal Year Ended June 30, 2024 (in millions)
General Fund Budgetary Highlights
The City’s budget is a flexible-spending plan, which commits resources to the accomplishment of City Council goals and objectives. During the fiscal year, the City Council took action to amend the adopted General Fund budget. A summary of the budgetary comparison schedule for the General Fund, located in the required supplementary information following the notes to the financial statements, is shown in the following table:

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
18 Original Budget Compared to Final Budget
Original Final
Budgeted Budgeted Net
Amount Amount Change
Revenues $ 272 $ 281 $ 9
Expenditures $ 270 $ 276 $ 6
Other financing sources (uses) $ (9) $ (18) $ (9)
General Fund Budget for the Fiscal Year Ended June 30, 2024 Table 5B
(in millions)
Adjustments to the original budget were based on the following:
 The $9 million increase in budgeted revenues is attributed to several factors: a $1 million mid-year budgetary adjustment in the property tax due to the solid growth of the projected receipts, a $4 million increase in charge for services driven by higher than anticipated revenues from events at Levi’s stadium and ambulance transportation, a $1 million rise in the penalties due to a higher actual collection, a $1 million increase in rental revenue from Commerce and Peddlers lease payments, and a $1 million increase in contribution in-lieu tax based on the higher than anticipated electric revenues in fiscal year 2023-24.
 The increase in budgeted expenditures is primarily due to a $3 million mid-year budget increase in the stadium operations to account for the cost associated with additional events, a $2 million increase in appropriations in the general administration for HVAC repairs and replacements, and a $1 million increase in the salary and benefits in the Fire department due to overtime.  The increase in budgeted Other Financing Uses is primarily due to a $3.5 million transfer to communication acquisition fund for radio replacements, a $3.7 million transfer to support the storm drain and city hall capital improvement projects, and a $1.3 million transfer to fire new development service fund to true up the fund balance.

Final Budget Versus Actual
Final
Budgeted Actual
Amount Amount Variance
Revenues $ 294 281 $ 13 $
Expenditures $ 266 276 $ (10) $
Other financing sources (uses) (18) $ (18) $ - $
General Fund Final Budget Versus Actual for the Fiscal Year Ended June 30, 2024 Table 5C
(in millions)

The most significant differences between actual and final budgeted amounts are explained as follows:

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
19  The final budgeted revenues resulted in a $13 million positive variance mainly due to a $6 million increase in the property taxes, sales taxes, and transient occupancy taxes, a $4 million increase in the interest and rents, a $3 million increase in the charges for services.  Actual expenditures were $10 million lower than the final budget as a result of lower departmental costs. See the General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget Actual (Non-GAAP Basis) for additional details.

Santa Clara Housing Successor
The Santa Clara Housing Successor (SCHS) Fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the Redevelopment Agency. The activities are governed by Community Redevelopment Law and must be used to provide housing for people with low and moderate incomes.

The SCHS’s revenues were approximately $956 thousand in fiscal year 2023-24, a decrease of $248 thousand from the previous year. The decrease is primarily due to lower principal and interest payments received from the multi-family developer loans.

The SCHS’s expenditures totaled $5.9 million, an increase of $358 thousand or 6.4% compared to $5.6 million in fiscal year 2022-23. Of this amount, $5.4 million was attributed to the cost of transferring land held for development to capital assets. The general expenditures account for case management services offered to persons experiencing or at risk of homelessness, on-going administration, and labor cost related to developing land held for development of affordable housing and managing assets. In fiscal year 2023- 24, the general expenditures were $585 thousand, a decrease of $43 thousand or 6.8% from the previous year. The reduction was mainly due to lower spending on contractual services.

Non-Major Governmental Funds
These funds are not presented separately in the Basic Financial statements but are individually presented in the Supplemental Information section of this report.

Financial Analysis of Enterprise Funds
At the end of fiscal year 2023-24, the Enterprise Fund net position totaled $1.9 billion, reflecting an increase of $280 million or 17.1% compared to the prior fiscal year. The major contributor to this increase was the Electric Utility Fund, which shown a $222 million increase. The increase in the Electric Utility Fund can be attributed to a $97 million increase in the charges for services and a $80 million decrease in the resource purchase expenses.

In fiscal year 2023-24, the equity of the joint venture recognized a gain of $19 million, a significant increase from the $43 million loss recorded in the previous fiscal year. This increase of $62 million is mostly due to a $71 million increase in the equity associated with the San Jose Santa Clara Joint Wastewater Treatment Facility project in the Sewer Utility fund, offset by a $9 million decrease in the Electric Utility joint venture equity.

Excluding joint venture activity and net change in the fair value of investments, non-operating expenses in fiscal year 2023-24 were $16 million, a decrease of $1 million from the previous fiscal year.

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
20 Electric Utility
This fund accounts for the operation of the City’s electric utility services. Charges for Services revenues were $656 million in fiscal year 2023-24, an increase of $97 million, or 17.3% from fiscal year 22-23. The primary driver for this increase was a 5% rate increase effective July 1, 2023, a 10% rate increase effective January 1, 2024, and increased consumption.

Retail operating expenses reached $580 million in fiscal year 2023-244, a reduction from the $665 million in fiscal year 2022-23. The decrease of $75 million or 11% in the operating expenses were primarily attributed to the lower costs in the purchased resources due to decreased gas prices.

Revenues from wholesale resource operations was $11.5 million in the current fiscal year, a significant decrease from the $85 million recorded in fiscal year 2022-23. The decrease is mainly attribute to a $60 million gain recognized in the wholesale resources trading activities in fiscal year 2022-23 and lower future gas price. The costs related to wholesale resources purchases decreased to $10 million from $19 million in the prior fiscal year. The decrease in wholesale power in fiscal year 2032-24 was influenced by the lower gas price in resource market.

Interest revenues was $14 million in fiscal year 2023-24, up from $8 million recorded in fiscal year 2022-

23. This increase is primarily due to a higher interest rate environment. Interest expense was $2 million in the current year.

The Electric Utility Fund had a net position of $1,293 million at June 30, 2024, an increase of $222 million or 20.7% from the prior fiscal year. Of this amount, $576 million was net investment in capital assets, $10 million was restricted for contractual obligations, and $707 million was unrestricted. The Electric Utility Fund is a participant in a number of joint ventures including Northern California Power Agency (NCPA), the Transmission Agency of Northern California (TANC), M-S-R Public Power Agency (MSR PPA), and M-S-R Energy Authority (MSR EA).

Water Utility
This fund accounts for the operation of the City’s water utility services. Operating revenues were $57 million for fiscal year 2023-24 compared to $50 million for the prior fiscal year. Increased water usage and water utility rates increase are the main factors for the revenue variance of $7 million.

Operating expenses were $58 million in fiscal year 2023-24, compared to $49 million in fiscal year 2022-

23. The increase is primarily due to increased resource costs, higher maintenance cost and increased interfund allocation per the most recent rate study. The Water Utility Fund’s net position was $76 million at June 30, 2024.

Sewer Utility
This fund accounts for the maintenance of the City’s sewer lines and related facilities. Operating revenues of the Sewer Utility were $45 million for fiscal year 2023-24 compared to $51 million in fiscal year 2023-

24. The additional revenue earned from the increase in sewer utility rates was offset by lower sewer conveyance fees for upsizing existing structures. Non-operating revenue was $4 million in the current year.

Operating expenses were $34 million in fiscal year 2023-24, compared to $33 million in the prior year. This increase is primarily due to higher salaries and benefits cost.

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
21 The Sewer Utility Fund had a net position of $375 million at June 30, 2024. Of this amount, $33 million was net investment in capital assets, $273 million was restricted for joint venture capital projects and $69 million was unrestricted and other. The Sewer Utility, together with the City of San Jose, owns the San Jose/Santa Clara Regional Wastewater Facility which is administered by the City of San Jose. The Sewer Utility’s ownership share is approximately 19.71% of the assets, capital, and operating costs. In fiscal year 2022-23, the City of San Jose reported that a gain of the Utility’s equity in the Regional Wastewater Facility was $19 million (fiscal year 2023-24 amounts were not available at the time of this report).

Water Recycling
This fund accounts for the ongoing maintenance and operations of the City’s wastewater reclamation system. Operating revenues is $8 million, an increase of $2 million from the prior year. Revenue increase is due to a combination of recycled water utility rates increase, increased usage and higher other agencies revenue due to reimbursement for an emergency leak repair. Operating expenses is $9 million, an increase of $2 million from fiscal year 2022-23 due to higher resource cost, and higher maintenance cost for an emergency leak repair. The net position at June 30, 2024 remains at $6 million.

Santa Clara Stadium Authority (Stadium Authority)
These funds account for the development and operation of Levi’s Stadium. As of March 31, 2024, the Stadium Authority recorded approximately $81 million in operating revenue, $9 million more than prior year. This was mainly due to increases in revenue from ticketed Non-NFL events, rents and licenses and NFL ticket surcharge. Operating expenses were $79 million, increasing $31 million from the prior fiscal year. This increase is primarily due to the 2024 Settlement Agreement, which resulted in an increase in buffet costs, performance-based rent and public safety costs over the threshold. Non-NFL event expenses also increased due to larger ticketed Non-NFL events. Net position at March 31, 2024 was $133 million, an increase of $21 million from the previous fiscal year. Refer to Note 6 for additional information.

Solid Waste
This fund accounts for the administration of the City’s garbage and rubbish collection service. Operating revenues were $39.3 million in fiscal year 2023-24, an increase of $3.3 million from the prior fiscal year.

Operating expenses were $37.8 million compared to $34 million in the prior fiscal year, mainly due to the increases in materials, services, and supplies cost. The Solid Waste Fund’s net position was $2.6 million at June 30, 2024.

Cemetery
This fund accounts for the Mission City Memorial Park’s operations. Operating revenues were $775 thousand, down 17% over the prior fiscal year. Operating expenses were down by 13% due to a decrease of $233 thousand in salary and benefits. Net position at June 30, 2024, was $3.4 million.

Santa Clara Convention Center
This fund accounts for the operations of the Santa Clara Convention Center. Operating revenues were $20 million in fiscal year 2023-24 compared to $17 million in fiscal year 2022-23. Expenses were $19 million in the fiscal year 2023-24 compared to $17 million in prior fiscal year. The increased costs are directly related to the increased events at the Convention Center. Net position at June 30, 2024, was $27 million.

On November 1, 2019, the City entered into an agreement with Levy Premium Foodservice Limited MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
22 Partnership (Levy) to manage the foodservice operations at the Convention Center and Levy agreed to pay an operating investment of $5.75 million to promote the economic development of the City. The investment is amortized on a straight-line basis over 15 years.

Sports and Open Space Authority (SOSA)
This fund accounts for the acquisition and preservation of open space within the City and the development of local sports activities. There were no operating revenues in fiscal year 2023-24 due to the expiration of the operating lease. Operating expenses were $10 thousand, with a net position at June 30, 2024 of $2 million.

CAPITAL ASSETS
At June 30, 2024, the City’s capital assets totaled $669 million in Governmental Activities, and $1.498 billion in Business-Type Activities, net of depreciation. Capital Assets are invested in a broad range of categories, as shown in Table 6.
2024 2023 Net Change
Governmental Activities:

Land $ 125 130 $ 5 $
Construction in progress 59 39 20
Land improvements 60 60 -
Buildings 217 217 -
Infrastructure 646 633 13
Machinery and equipment 89 87 2
Right-to-use leased Equipment 1 1 -
Right-to-use SBITA 13 11 2
Less accumulated depreciation (546) (521) (25)
Totals $ 669 $ 652 $ 17
Business-Type Activities:

Land $ 19 19 $ - $
Construction in progress 93 74 19
Buildings 922 919 3
Infrastructure 1,316 1,262 54
Machinery and equipment 30 28 2
Right-to-use leased building 3 3 -
Right-to-use SBITA 4 3 1
Less accumulated depreciation (889) (838) (51)
Totals $ 1,498 $ 1,470 $ 28
Table 6
Capital Assets at June 30, 2024
(in millions)
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
23 The increase of $13 million in the Governmental Funds infrastructure was primarily due to $8 million in the improvement in street and sidewalk infrastructure and $4 million of Contributed Infrastructure from various developers. The $54 million increase in Enterprise Funds infrastructure was mainly due to $39 million in Electric infrastructure improvements related to substation and transformer projects, $5 million in sanitary sewer system improvement, and $3 million in replacement of the water distribution system.

The Capital Improvement Project Budget for fiscal year 2023-24 and the Five-Year Financial Plan for fiscal year 2023-24 through fiscal year 2027-28 contain more detailed discussions of Capital Projects planned for the City of Santa Clara. See Note 9 to the financial statements for additional details on fiscal year 2023-24 capital assets.

DEBT ADMINISTRATION
Each of the City’s debt issues is discussed in detail in Note 10 to the financial statements. At June 30, 2024 the City’s debt was comprised of the following:

Balance Balance
Governmental Activity Debt: June 30, 2024 June 30, 2023 Net Change Refunding Certificates of Participation, Series 2013 9 $ 11 $ (2) $ Business-Type Debt:

Electric Utility Revenue Bonds, net of unamortized discount 27 33 (6) Electric Loan Agreements 95 86 (9)
Sewer Utility Loan Agreements 27 6 (21)
Sewer Utility Certificates of Participation 2023 36 - 36 StadCo CFD Advance (1) 30 29 (1)
Stadium Funding Trust Loan(1) 215 200 (15)
Total Debt $ 393 $ 411 $ (18)
(1) Stadium Authority's long-term obligations are based on a March 31 fiscal year end.

Table 7
Outstanding Debt at June 30, 2024
(in millions)

SUCCESSOR AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (AB 26) that provided for the dissolution of all redevelopment agencies in the State of California. On February 1, 2012 all redevelopment agencies in California were effectively dissolved. The Successor Agency for the Santa Clara Redevelopment Agency is currently in the process of winding down the affairs of the former Redevelopment Agency.

See Notes 21 and 22 for further information on the Redevelopment Agency dissolution and Successor Agency activities.

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
24 ECONOMIC OUTLOOK
The economy of the City is discussed in the accompanying Transmittal Letter.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. A separate Annual Financial Report for Silicon Valley Power is available upon request. Questions about this Report should be directed to the City of Santa Clara Finance Department, 1500 Warburton Avenue, Santa Clara, California, 95050, telephone (408) 615- 2340.

Basic Financial Statements

27 CITY OF SANTA CLARA

GOVERNMENT-WIDE FINANCIAL STATEMENTS

STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City’s assets and deferred outflows of resources and all its liabilities and deferred inflows of resources, as well as all its revenues and expenses. This is known as the full accrual basis—the effect of all the City’s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.

The Statement of Net Position reports the excess of the City’s total assets and deferred outflows of resources over the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position presents similar information to the balance sheet format, but presents it in a way that focuses the reader on the composition of the City’s net position, by subtracting total liabilities and deferred inflows from total assets and deferred outflows.

The Statement of Net Position summarizes the financial position of all the City’s Governmental Activities in a single column, and the financial position of all the City’s Business-Type Activities in a single column; these columns are followed by a total column that presents the financial position of the entire City.

The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Debt Service, and Capital Projects funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating interfund transactions and balances. The City’s Business-Type Activities include all its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures.

The format of the Statement of Activities presents the City’s expenses first, listed by program, and follows these with the expenses of its business-type activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net (expense) revenue of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-Type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

Both these Statements include the financial activities of the City, the Santa Clara Housing Authority, the Santa Clara Stadium Authority, the City of Santa Clara Sports and Open Space Authority, and the City of Santa Clara Public Facilities Financing Corporation, which are legally separate but are component units of the City.

See accompanying notes to basic financial statements
28 Governmental Business-Type
Activities Activities Total
ASSETS
Current Assets
Cash and investments (Note 7):

Pooled cash and investments 787,747,851 409,840,935 $ 1,197,588,786 $ Investments with fiscal agent 32,506,728 48,901 32,555,629 Receivables (net of allowance for uncollectible):

Accounts 167,107,083 8,056,985 175,164,068
Interest 4,487,443 7,582,817 12,070,260
Intergovernmental - 19,465,431 19,465,431
Leases receivable (Note 4) 12,252,358 1,635,317 13,887,675 Derivative financial instruments (Note 10D) - 7,119,963 7,119,963 Materials, supplies and prepaids 21,062,541 2,505,265 23,567,806 Land held for development (Note 2H) 1,703,500 - 1,703,500 Total Current Assets 1,032,283,967 450,839,151 1,483,123,118 Noncurrent Assets
Restricted Cash (Note 7) 94,295,087 31,763,107 126,058,194 Investment with fiscal agent (Note 7) 719,134 11,562,642 12,281,776 Derivative financial instruments (Note 10D) - 4,867,018 4,867,018 Deposits (Note 7) 9,449,807 - 9,449,807
Leases receivable, noncurrent (Note 4) 249,956,383 585,893,904 835,850,287 Internal balances (Note 8C) 6,558,214 (6,808,252) (250,038) Long term loans, net - 102,259,111 102,259,111
Capital assets (Note 9):

Land and construction in progress 188,556,761 111,492,874 300,049,635 Capital assets being depreciated, net 480,381,920 1,386,646,274 1,867,028,194 Investment in joint ventures (Note 12) 5,501,554 337,582,904 343,084,458 Other 534,892 22,680 557,572
Total Noncurrent Assets 1,052,352,398 2,548,883,616 3,601,236,014 Total Assets 3,581,167,583 1,503,191,549 5,084,359,132

DEFERRED OUTFLOWS OF RESOURCES
Derivative instruments (Note 10D) 7,708 - 7,708
Refunding of debt 4,474,983 - 4,474,983
OPEB related items (Note 16) 433,841 1,175,912 1,609,753 Pension related items (Note 13) 33,154,106 136,293,702 169,447,808 Total Deferred Outflows of Resources 137,469,614 38,070,638 175,540,252

CITY OF SANTA CLARA

STATEMENT OF NET POSITION
June 30, 2024
Statement of Net Position
See accompanying notes to basic financial statements
29 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current Liabilities
Accrued liabilities 82,810,384 35,071,427 117,881,811
Deposits - 5,631,370 5,631,370
Interest payable 6,921,257 280,863 7,202,120
Accrued compensated absences (Note 2L) 1,517,925 578,025 2,095,950 Unearned revenue, current portion 22,439,187 328,031 22,767,218 Landfill closure liability (Note 11) 788,000 - 788,000
Derivative financial instruments (Note 10D) - 7,708 7,708 Current portion of lease obligation (Note 10H) 39,41 710,181 3 749,594 Current portion of SBITA (Note 10I) 2,011,963 481,034 2,492,997 Long-term debt due within one year (Note 10) 1,085,0 24,306,891 00 25,391,891 Total Current Liabilities 139,042,667 45,965,992 185,008,659 Noncurrent Liabilities
Long-term portion estimated claims (Note 19) 22,756, - 000 22,756,000 Accrued compensated absences (Note 2L) 20,689,883 7,878,680 28,568,563 Landfill closure liabilities (Note 11) 5,925,426 - 5,925,426 Unearned revenue 431,418,058 - 431,418,058
Long-term lease obligation (Note 10H) 240,824 - 240,824 Long-term SBITA obligation (Note 10I) 2,495,434 7,191,980 9,687,414 Long-term debt due after one year (Note 10) 8,390,80 358,927,512 0 367,318,312 Net OPEB liability due after one year (Note 16) 26,0 9,620,901 77,531 35,698,432 Net pension liability due after one year (Note 13) 5 148,179,823 37,991,162 686,170,985 Total Noncurrent Liabilities 623,097,356 964,686,658 1,587,784,014 Total Liabilities 669,063,348 1,103,729,325 1,772,792,673

DEFERRED INFLOWS OF RESOURCES
Derivative instruments (Note 10D) 11,986,981 - 11,986,981 Refunding of debt 1,024,530 - 1,024,530
Leases related (Note 4) 582,229,348 245,748,566 827,977,914 OPEB related items (Note 16) 533,618 1,446,368 1,979,986 Pension related items (Note 13) 655,703 2,578,910 3,234,613 Total Deferred Inflows of Resources 249,773,844 596,430,180 846,204,024 NET POSITION (Note 18)
Net investment in capital assets 650,219,524 1,145,343,708 1,795,563,232 Restricted for:

Capital projects and other agreements 142,129,746 384,617,264 526,747,010 Debt service - 597,880 597,880
Housing activities - 128,513,549 128,513,549
Community development - 37,791,655 37,791,655
Transportation - 4,889,228 4,889,228
Pension rate stabilization program 29,226,846 - 29,226,846 Maintenance - 2,474,601 2,474,601
Other purposes - 7,638,904 7,638,904
Total Restricted Net Position 353,262,409 384,617,264 737,879,673 Unrestricted Net Position 389,117,744 (281,657,962) 107,459,782 Total Net Position 1,919,078,716 721,823,971 $ 2,640,902,687 $

CITY OF SANTA CLARA

STATEMENT OF NET POSITION
June 30, 2024
See accompanying notes to basic financial statements
30 Indirect Operating Capital
Expenses Charges for Grants and Grants and
Functions/Programs Expenses Allocation Services Contributions Contributions Governmental Activities:

General Administration 38,816,294 $ (5,672,334) $ 21,733,373 $ 2,971,195 $ 203,494 $ City Clerk (461,058) 1,669,643 21,252 - -
City Attorney (430,321) 2,748,865 - - -
Human Resources 3,611,651 (1,721,282) - - -
Finance (7,423,030) 16,247,051 3,185,275 - -
Public Works (2,346,978) 48,511,286 6,061,820 13,950,965 11,063,241 Parks and Recreation 27,658,938 - 3,589,000 161,915 -
Public Safety:

Police - 97,507,011 1,059,513 830,610 -
Fire - 79,840,376 8,866,965 3,998,213 -
Planning and Inspection 18,723,508 - 18,953,027 1,024,894 - Library - 13,056,165 9,958 179,325 -
Interest on long term debt 546,405 - - - -
Total Governmental Activities 348,937,193 (18,055,003) 63,480,183 23,117,117 11,266,735 Business-type Activities:

Utilities:

Electric 8,975,561 575,096,910 784,316,159 - -
Water 2,963,626 55,075,142 57,514,540 - -
Sewer 1,500,450 34,661,494 48,790,966 - -
Water Recycling 8,908,204 86,874 8,796,611 - -
Solid Waste 1,946,726 35,862,680 39,286,895 - -
Cemetery 132,888 1,094,830 774,643 - -
Sports and Open Space Authority 10,498 - - - -
Santa Clara Convention Center 18,645,254 280,583 19,670,945 - - Santa Clara Stadium Authority 88,878,746 2,168,295 81,107,805 - 3,467,625 Total Business-type Activities 818,233,758 18,055,003 1,040,258,564 - 3,467,625 Total $ - 1,167,170,951 $ 1,103,738,747 $ 23,117,117 $ 14,734,360 $ General Revenues:

Taxes:

Sales
Ad valorem property
Transient occupancy
Other
Contribution in lieu of taxes
Investment earnings
Net increase in the fair value of investments
Equity in gains of joint ventures
Rents and royalties
Gain on retirement of capital asset
Other
Transfers (Note 8A)
Total General Revenues and Transfers
Change in Net Position
Net Position - beginning
GASB 87 implementation (Note 6F)
Net Position - beginning, as restated
Net Position - ending
Program Revenues

STATEMENT OF ACTIVITIES

CITY OF SANTA CLARA
For the year ended June 30, 2024
Statement of Activities
See accompanying notes to basic financial statements
31 Governmental Business-Type
Activities Activities Total
$ - (8,235,898) $ (8,235,898) $
- (1,187,333) (1,187,333)
- (2,318,544) (2,318,544)
- (1,890,369) (1,890,369)
- (5,638,746) (5,638,746)
- (15,088,282) (15,088,282)
- (23,908,023) (23,908,023)
- (95,616,888) (95,616,888)
- (66,975,198) (66,975,198)
- 1,254,413 1,254,413
- (12,866,882) (12,866,882)
(546,405) - (546,405)
- (233,018,155) (233,018,155)
200,243,688 - 200,243,688
(524,228) - (524,228)
12,629,022 - 12,629,022
(198,467) - (198,467)
1,477,489 - 1,477,489
(453,075) - (453,075)
(10,498) - (10,498)
745,108 - 745,108
(6,471,611) - (6,471,611)
207,437,428 - 207,437,428
207,437,428 (233,018,155) (25,580,727)
61,776,044 - 61,776,044
- 90,176,113 90,176,113
22,347,394 - 22,347,394
- 7,115,826 7,115,826
- 33,143,505 33,143,505
35,798,886 17,939,203 53,738,089
11,712,312 9,968,998 21,681,310
18,555,751 - 18,555,751
- 9,753,446 9,753,446
1,071 - 1,071
- 12,124,140 12,124,140
(2,525,925) 2,525,925 -
63,542,095 266,870,594 330,412,689
270,979,523 33,852,439 304,831,962
1,639,353,776 687,971,532 2,327,325,308
8,745,417 - 8,745,417
1,648,099,193 687,971,532 2,336,070,725
$ 1,919,078,716 721,823,971 $ 2,640,902,687 $
Net (Expense) Revenue and Changes in Net Position

CITY OF SANTA CLARA

STATEMENT OF ACTIVITIES
For the year ended June 30, 2024
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33 CITY OF SANTA CLARA

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal year 2023-24. Individual non-major funds may be found in the Supplementary section.

MAJOR GOVERNMENTAL FUNDS

GENERAL FUND
The General Fund accounts for resources and services traditionally associated with government. The General Fund provides administrative, financial, police protection, fire protection, community development, recreation, and maintenance services to the community and other funds. The General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund.

SANTA CLARA HOUSING SUCCESSOR FUND
The Santa Clara Housing Successor Fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The activities are governed by Community Redevelopment Law and must be used to provide housing for people with low and moderate incomes.

See accompanying notes to basic financial statements
34 General Santa Clara
Fund Housing Successor
ASSETS
Cash and investments (Note 7):

Pooled cash and investments $ 143,861,990 $ 4,305,770
Investments with fiscal agent - current - -
Restricted cash 29,226,846 -
Receivables (net of allowance for uncollectibles):

Accounts 7,193,374 -
Interest 7,582,817 -
Loans 4,339,823 103,509,057
Intergovernmental 12,599,452 -
Due from other funds (Note 8B) 223,091 -
Materials, supplies and prepaids 23,593 -
Land held for development (Note 2H) - 1,703,500
Investments with fiscal agent - noncurrent (Note 7) - - Leases Receivable (Note 4) 251,591,700 -
Other 22,680 -
Total Assets $ 109,518,327 456,665,366 $

LIABILITIES
Accrued liabilities $ 19,298,124 $ 140,463
Deposits - 5,631,370
Unearned revenue 328,031 -
Total Liabilities 140,463 25,257,525

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Lease revenues (Note 4) 245,748,566 - Unavailable revenue - Loans 4,339,823 103,509,057
Total Deferred Inflows of Resources 250,088,389 103,509,057 FUND BALANCES (Note 18)
Nonspendable 5,880,051 -
Restricted 31,841,260 5,868,807
Committed 18,577,142 -
Assigned 15,756,256 -
Unassigned 109,264,743 -
Total Fund Balances 5,868,807 181,319,452
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $ 109,518,327 456,665,366 $

CITY OF SANTA CLARA

GOVERNMENTAL FUNDS

BALANCE SHEET
June 30, 2024
Balance Sheet
See accompanying notes to basic financial statements
35 Non-Major Total
Governmental Funds Governmental Funds
$ 210,327,750 $ 358,495,510
48,901 48,901
2,536,261 31,763,107
389,518 7,582,892
- 7,582,817
78,767,881 186,616,761
6,865,979 19,465,431
- 223,091
- 23,593
- 1,703,500
719,134 719,134
- 251,591,700
- 22,680
$ 865,839,117 299,655,424 $
$ 7,502,881 $ 26,941,468
5,631,370 -
- 328,031
32,900,869 7,502,881
- 245,748,566
78,767,881 186,616,761
78,767,881 432,365,327
- 5,880,051
129,755,688 167,465,755
83,628,974 102,206,116
- 15,756,256
- 109,264,743
400,572,921 213,384,662
$ 865,839,117 299,655,424 $

BALANCE SHEET
June 30, 2024

CITY OF SANTA CLARA

GOVERNMENTAL FUNDS
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See accompanying notes to basic financial statements
37 TOTAL GOVERNMENTAL FUND BALANCE $ 400,572,921
Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:

CURRENT LIABILITIES
The assets and liabilities below are due and payable in less than one year and more than 90 days and therefore are not reported in the Funds:

Current portion of accrued compensated absences (excluding Internal Service Funds) (1,466,067) Interest payable (187,537)

CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and, therefore, are not reported in the Governmental Funds. 659,663,679 Right to use leases assets and SBITA assets used in governmental activities are not financial resources and therefore are not reported in the funds. 9,275,002 INVESTMENT IN NON-BUSINESS-TYPE JOINT VENTURE 5,501,554

DEFERRED OUTFLOWS OF RESOURCES
OPEB related (excluding Internal Service Funds) 1,145,821 Pension related (excluding Internal Service Funds) 134,144,284

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal Service Funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance, to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement of Net Position:

Cash and investments 51,345,425
Accounts receivable 474,093
Materials, supplies and prepaid 2,481,672
Deferred outflows OPEB related items 30,091
Deferred outflows pension related items 2,149,418
Accrued liabilities, including short-term portion of estimated claims (8,129,959) Long-term portion of estimated claims (22,756,000)
Compensated absences - current (51,858)
Compensated absences - long-term (706,850)
Internal balances (7,031,343)
Lease obligations, including interest payable (34,722)
SBITA obligations, including interest payable (1,227,314) Net OPEB liability (667,331)
Net pension liability (9,181,654)
Deferred inflows OPEB related items (37,012)
Deferred inflows pension related items (40,629)

LONG TERM LIABILITIES
The assets and liabilities below are not due and payable in the current period and, therefore, are not reported in the Funds:

Reserve against conditional grant balances (10,035,548) Long-term debt (9,475,800)
Long-term liability associated with lease agreements (excluding Internal Service Funds) (4,731) Long-term liability associated with SBITA agreements (excluding Internal Service Funds) (8,069,916) Non-current portion of accrued compensated absences
(excluding Internal Service Funds) (19,983,033)
Net OPEB liability (excluding Internal Service Funds) (25,410,200) Net pension liability (excluding Internal Service Funds) (528,809,507)

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues recorded in governmental funds financial statements resulting from activities in which revenues were earned but funds were not available are reclassified as revenues in Government-Wide Financial Statements. 112,294,659 (1,409,356)
(2,538,281)
NET POSITION OF GOVERNMENTAL ACTIVITIES $ 721,823,971
June 30, 2024

CITY OF SANTA CLARA
Pension related (excluding Internal Service Funds)

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
OPEB related (excluding Internal Service Funds)
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position See accompanying notes to basic financial statements
38 General Santa Clara
Fund Housing Successor

REVENUES
Taxes:

Sales $ 61,776,044 $ -
Ad valorem 90,710,410 -
Transient occupancy 22,347,394 -
Other 6,741,057 -
Licenses, permits, fines, and penalties 11,610,060 -
Intergovernmental 889,326 -
Charges for services 45,715,376 15,648
Contributions in-lieu of taxes 33,143,505 -
Interest and rents 27,193,406 77,056
Net increase (decrease) in the fair
value of investments 9,968,998 -
Other 1,196,420 862,868
Total Revenues 311,291,996 955,572

EXPENDITURES
Current:

General Administration 28,020,144 5,985,386
City Clerk 1,746,564 -
City Attorney 2,834,635 -
Human Resources 3,520,797 -
Finance 18,081,016 -
Public Works 24,514,543 -
Parks and Recreation 20,518,817 -
Public Safety:

Police 84,399,853 -
Fire 65,032,429 -
Planning and Inspection 4,408,690 -
Library 10,571,512 -
Capital outlay 2,109,475 -
Debt service (Note 10):

Principal payments 1,092,217 -
Interest and fiscal fees 195,159 -
Total Expenditures 267,045,851 5,985,386

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 44,246,145 (5,029,814)

OTHER FINANCING SOURCES (USES)
Subscription Based IT Arragement Liabilities (Note 10) 2,078,197 - Transfers in (Note 8A) 2,861,559 -
Transfers (out) (Note 8A) (21,182,424) -
Total Other Financing Sources (Uses) (16,242,668) -
NET CHANGE IN FUND BALANCE 28,003,477 (5,029,814)
Fund balances - beginning 153,315,975 10,898,621
Fund balances - ending $ 5,868,807 181,319,452 $

CITY OF SANTA CLARA

GOVERNMENTAL FUNDS

AND CHANGES IN FUND BALANCES

STATEMENT OF REVENUES, EXPENDITURES
For the year ended June 30, 2024
Statement of Revenues, Expenditures, and Changes in Fund Balances See accompanying notes to basic financial statements
39 Non-Major Total
Governmental Funds Governmental Funds
$ - $ 61,776,044
- 90,710,410
- 22,347,394
374,769 7,115,826
8,540,817 20,150,877
29,840,188 30,729,514
13,580,919 59,311,943
- 33,143,505
3,159,380 30,429,842
- 9,968,998
6,800,489 8,859,777
62,296,562 374,544,130
7,316,005 41,321,535
- 1,746,564
- 2,834,635
- 3,520,797
- 18,081,016
7,185,694 31,700,237
2,699,325 23,218,142
581,290 84,981,143
7,045,055 72,077,484
14,470,224 18,878,914
187,843 10,759,355
28,990,995 31,100,470
1,146,047 2,238,264
427,037 622,196
70,049,515 343,080,752
(7,752,953) 31,463,378
- 2,078,197
30,885,841 33,747,400
(14,438,252) (35,620,676)
16,447,589 204,921
8,694,636 31,668,299
204,690,026 368,904,622
$ 400,572,921 213,384,662 $

CITY OF SANTA CLARA

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
For the year ended June 30, 2024
This page intentionally left blank
See accompanying notes to basic financial statements
41 CITY OF SANTA CLARA

AND CHANGES IN FUND BALANCES TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 31,668,299 Amounts reported for governmental activities in the Statement of Activities are different because of the following:

ACCRUAL OF CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of financial resources over 90 days and therefore are not reported as revenue or expenditures in governmental funds (net change):

Current portion of accrued compensated absences 286,299

CAPITAL ASSET TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

The capital outlay expenditures are therefore added back to fund balance 34,422,541 Depreciation expense is deducted from the fund balance
(Depreciation expense is net of Internal Service Fund depreciation of $2,473,907 which has already been allocated to service funds.) (22,909,250) Retirements of capital assets (net of Internal Service Fund retirement of $30,107) (2,791) Contributions of infrastructure improvements by developers and equipment are capitalized in the Statement of Activities, but are not recorded in the Governmental Fund Statements because no cash changed hands. 4,060,168
JOINT VENTURES - PROFIT FROM EQUITY (334,939)

LONG TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.

Issuance of SBITA liability is deducted from fund blance (2,078,197) Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.

Repayment of debt principal is added back to fund balance 1,030,000 Amortization of bond premium 54,297

ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):

Provision for reserve of conditional grants (355,798)
Non-current portion of accrued compensated absences (1,752,208) Interest payable 21,458
Unavailable revenue 311,775
Lease related expense 73
SBITA related expense 2,042,054
OPEB related expense 1,488,654
Pension related expense (23,995,622)

ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds.

The portion of the net revenue (expense) of these Internal Service Funds, arising out of their transactions with Governmental Funds, is reported with governmental activities, because they service those activities.

Change in Net Position - All Internal Service Funds, net 7,827,416 Change in Net Position of Internal Service Funds reported with Business-Type Activities 2,068,210 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 33,852,439 For the year ended June 30, 2024

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities This page intentionally left blank
43 CITY OF SANTA CLARA

MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. Individual non-major Proprietary funds may be found in the Supplementary section.

The City has identified the funds below as major proprietary funds in fiscal year 2023-24.

GAAP does not require the disclosure of budget versus actual comparisons regarding proprietary funds that are major funds.

ELECTRIC UTILITY FUND
This fund accounts for the operation of the City’s electric utility, a self-supporting activity that provides services on a user charge basis to residences and businesses.

WATER UTILITY FUND
This fund accounts for the operation of the City’s water utility, a self-supporting activity that provides services on a user charge basis to residences and businesses.

SEWER UTILITY FUND
The sewer utility fund accounts for the maintenance of the City’s sewer lines and related facilities. It is a selfsupporting activity that provides services on a user charge basis to residences and businesses.

WATER RECYCLING UTILITY FUND
This fund accounts for the ongoing maintenance and operations of the City’s waste water reclamation system.

It is a self-supporting activity that provides services on a user charge basis from the sale of non-potable water for irrigation and landscaping.

SANTA CLARA STADIUM AUTHORITY FUND
The Santa Clara Stadium Authority Fund was established in 2011 to provide for development and operation of Levi’s Stadium (home of the NFL’s San Francisco 49ers). In November 2012, the Santa Clara Stadium Authority changed its fiscal year ending date from June 30th to March 31st to conform with the fiscal year of Stadium Funding Trust.

See accompanying notes to basic financial statements
44 Electric Water Sewer
Utility Utility Utility
ASSETS
Current assets:

Cash and investments (Note 7):

Pooled cash and investments $ 25,420,688 609,040,674 $ 102,158,565 $ Investments with fiscal agent - 16,596,885 -
Receivables (net of allowance for uncollectible):

Accounts 9,678,377 122,946,617 5,996,715
Interest 139,299 3,761,308 570,526
Leases receivable (Note 4) 32,805 259,985 32,805
Derivative financial instrument (Note 10D) 7,119,963 - - Due from other funds (Note 8B) 1,621,839 4,017,195 1,126,387 Materials, supplies and prepaids 19,366,588 1,695,953 - Total current assets 38,588,961 783,109,215 109,884,998 Noncurrent assets:

Restricted cash (Note 7) 2,230,727 10,065,874 958,752
Investment with fiscal agent (Note 7) - - 26,407
Derivative financial instrument (Note 10D) 4,867,018 - - Deposits (Note 7) - 9,449,807 -
Leases receivable, noncurrent (Note 4) 1,852,925 875,240 875,240 Capital assets (Note 9):

Land 661,268 14,371,743 725,328
Construction in progress 167,655 86,463,324 364,713
Buildings, infrastructure and land improvements 1,147, 111,885,017 187,859 68,370,301 Equipment 4,172,275 10,212,515 5,462,089
Right-to-use leased assets - 2,916,623 -
Right-to-use SBITA 3,837,038 - -
116,886,215 1,264,989,102 74,922,431
Less accumulated depreciation 576,144,800 54,697,373 30,560,821 Net capital assets 62,188,842 688,844,302 44,361,610
Investment in joint ventures (Note 12) 65,209,772 - 272,373,132 Other assets - - -
Total noncurrent assets 65,294,809 780,289,698 318,595,141 Total assets 103,883,770 1,563,398,913 428,480,139

DEFERRED OUTFLOWS OF RESOURCES
Derivative instruments (Note 10D) - 7,708 -
Refunding of debt - 4,474,983 -
OPEB related items (Note 16) 68,522 311,077 32,559
Pension related items (Note 13) 4,241,869 25,096,908 2,137,766 Total deferred outflows of resources 29,890,676 4,310,391 2,170,325

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
June 30, 2024
Business-type Activities-Enterprise Funds

PROPRIETARY FUNDS
Statement of Net Position
See accompanying notes to basic financial statements
45 Water Santa Clara Non-Major Internal Service
Recycling Stadium Authority Enterprise Funds
Utility
(as of March 31, 2024)
restated (Note 6) Funds TOTAL (Note 2B)
$ 18,485,558 6,459,997 $ 25,733,041 $ 787,298,523 $ 51,794,753 $ 15,909,843 - - 32,506,728 -
19,453,027 1,597,714 7,434,633 167,107,083 474,093
- 16,310 - 4,487,443 -
11,926,763 - - 12,252,358 -
- - - 7,119,963 -
- - 265,923 7,031,344 41,213
- - - 21,062,541 2,481,672
65,775,191 8,074,021 33,433,597 1,038,865,983 54,791,731 78,573,023 168,123 2,298,588 94,295,087 -
11,536,235 - - 11,562,642 -
- - - 4,867,018 -
- - - 9,449,807 -
582,290,499 - - 585,893,904 -
- - 3,092,872 18,851,211 -
4,202,330 - 1,443,641 92,641,663 -
830,191,432 1,257,070 80,211,731 2,239,103,410 -
7,002,901 - 3,006,588 29,856,368 45,087,709
- - - 2,916,623 34,655
- - - 3,837,038 1,386,483
841,396,663 1,257,070 87,754,832 2,387,206,313 46,508,847 162,827,215 209,637 64,627,319 889,067,165 32,683,436
678,569,448 1,047,433 23,127,513 1,498,139,148 13,825,411 - - - 337,582,904 -
534,892 - - 534,892 -
1,351,504,097 1,215,556 25,426,101 2,542,325,402 13,825,411 1,417,279,288 9,289,577 58,859,698 3,581,191,385 68,617,142 - - - 7,708 -
- - - 4,474,983 -
- 4,787 16,896 433,841 30,091
- 398,746 1,278,817 33,154,106 2,149,418
- 403,533 1,295,713 38,070,638 2,179,509
(continued)
Business-type Activities-Enterprise Funds

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
June 30, 2024
See accompanying notes to basic financial statements
46 Electric Water Sewer
Utility Utility Utility

LIABILITIES
Current liabilities:

Accrued liabilities 7,353,649 44,808,600 476,633
Interest payable - 1,190,752 731,599
Unearned revenue - - -
Due to other funds (Note 8B) - - -
Accrued compensated absences (Note 2L) 472,381 61,405 24,070 Current portion of landfill closure liability (Note 11) - - - Current portion of long-term debt (Note 10) 15,460,0 - 00 1,546,995 Current portion derivative financial instruments (Note 10D) 7,708 - - Current portion of leases obligation (Note 10H) 710, - 181 - Current portion of SBITA (Note 10I) 481,034 - -
Total current liabilities 7,415,054 63,130,656 2,779,297 Noncurrent liabilities:

Unearned revenue - - -
Long-term portion estimated claims - - -
Long-term compensated absences (Note 2L) 6,438,722 836,972 328,076 Landfill closure liability (Note 11) - - -
Long-term debt (Note 10) - 97,089,699 40,469,883
Long-term leases obligation (Note 10H) 240,824 - -
Long-term SBITA (Nte 10I) - 2,495,434 -
Net OPEB liability (Note 16) 1,519,553 6,898,479 722,033 Net pension liability (Note 13) 20,708,985 108,269,790 10,320,983 Total noncurrent liabilities 23,065,510 221,432,948 51,840,975 Total liabilities 30,480,564 284,563,604 54,620,272

DEFERRED INFLOWS OF RESOURCES
Derivative instruments (Note 10D) 11,986,981 - -
Refunding of debt - 1,024,530 -
Leases related (Note 4) 831,430 1,997,165 831,430
OPEB related items (Note 16) 84,281 382,621 40,047
Pension related items (Note 13) 91,638 479,098 45,671
Total deferred inflows of resources 15,870,395 1,007,349 917,148 NET POSITION (Note 18)
Net investment in capital assets 62,188,842 575,817,583 33,260,715 Restricted for capital projects and other agreements 10,065,874 1,927,637 273,331,884 Unrestricted 12,589,769 706,972,133 68,520,445
Total net position $ 1,292,855,590 $ 76,706,248 $ 375,113,044 Adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time.

Net position of business-type activities

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
June 30, 2024
Business-type Activities-Enterprise Funds
See accompanying notes to basic financial statements
47 Water Santa Clara Non-Major Internal Service
Recycling Stadium Authority Enterprise Funds
Utility
(as of March 31, 2024)
restated (Note 6) Funds TOTAL (Note 2B)
23,637,965 1,601,637 4,931,900 82,810,384 8,129,958
4,998,906 - - 6,921,257 7,304
16,900,628 - 5,538,559 22,439,187 -
473,130 - - 473,130 7,072,557
- 61 20,108 578,025 51,858
- - 788,000 788,000 -
7,299,896 - - 24,306,891 -
- - - 7,708 -
- - - 710,181 34,720
- - - 481,034 602,683
53,310,525 1,601,698 11,278,567 139,515,797 15,899,080
431,418,058 - - 431,418,058 -
- - - - 22,756,000
- 829 274,081 7,878,680 706,850
- - 5,925,426 5,925,426 -
221,367,930 - - 358,927,512 -
- - - 240,824 -
- - - 2,495,434 617,329
- 106,147 374,689 9,620,901 667,331
- 1,809,522 7,070,543 148,179,823 9,181,654
652,785,988 1,916,498 13,644,739 964,686,658 33,929,164 706,096,513 3,518,196 24,923,306 1,104,202,455 49,828,244 - - - 11,986,981 -
- - - 1,024,530 -
578,569,323 - - 582,229,348 -
- 5,887 20,782 533,618 37,012
- 8,008 31,288 655,703 40,629
578,569,323 13,895 52,070 596,430,180 77,641
449,901,622 1,047,433 23,127,513 1,145,343,708 12,570,679 94,236,867 168,123 4,886,879 384,617,264 -
(411,525,037) 4,945,463 7,165,643 388,668,416 8,320,087 $ 6,161,019 $ 132,613,452 $ 35,180,035 1,918,629,388 $ 20,890,766 449,328
$ 1,919,078,716

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
June 30, 2024
Business-type Activities-Enterprise Funds
See accompanying notes to basic financial statements
48 Electric Water Sewer
Utility Utility Utility
Operating revenues:

Charges for services $ 57,051,908 656,147,118 $ 44,530,605 $ Rents, royalties and licensing - - -
Insurance refunds and other - - -
Mandated program receipts 20,120,470 - -
Renewable energy credits - 10,502,295 -
Wholesale resource sales - 11,470,683 -
Other - 43,225,175 -
Total operating revenues 741,465,741 57,051,908 44,530,605 Operating expenses:

Salaries and benefits 7,489,714 60,073,452 3,923,106
Materials, services and supplies 475,459,245 48,560,558 28,688,090 General and administrative - - -
Mandated program disbursements 6,179,170 - -
Wholesale resources purchases 9,785,427 - -
Amortization- Right to use assets 1,158,632 - -
Depreciation 1,927,329 27,322,314 1,382,392
Total operating expenses 579,978,240 57,977,601 33,993,588 Operating income (loss) 161,487,501 (925,693) 10,537,017 Nonoperating revenues (expenses):

Interest revenue 621,481 13,871,450 2,194,821
Net change in the fair value of investments 8,702,12 733,792 8 2,100,610 Rents and royalties 56,610 3,484,588 56,610
Other revenue 406,022 39,365,830 4,203,751
Interest expense - (2,206,422) (1,557,125)
Other expense - - (550,331)
Equity in income (losses) of joint ventures (635,169 - ) 19,190,920 Gain (loss) on retirement of assets 1,071 - -
Total nonoperating revenues (expenses) 62,582,405 1,818,976 25,639,256 Income (loss) before
contributions and transfers 224,069,906 893,283 36,176,273 Contributions - - -
Transfers in (Note 8A) 218,118 376,500 113,266
Transfers (out) (Note 8A) (832,275) (2,885,902) (158,795) Change in net position 221,560,504 279,126 36,130,744
Total net position - beginning 1,071,295,086 76,427,122 338,982,300 GASB 87 implementation (Note 6E) - - -
Total net position - beginning as adjusted (Note 6E) 1,071,295,086 76,427,122 338,982,300 Total net position - ending $ 1,292,855,590 $ 76,706,248 $ 375,113,044 Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds.

Change in net position of business-type activities

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
For the year ended June 30, 2024
Business-type Activities-Enterprise Funds
Statement of Revenues, Expenses, and Changes in Fund Net Position See accompanying notes to basic financial statements
49 Water Santa Clara Non-Major
Recycling Stadium Authority Enterprise Internal Service Utility
(as of March 31, 2024)
restated (Note 6) Funds Total Funds
$ 40,611,283 8,668,005 $ 59,159,905 $ 866,168,824 $ 39,278,769 $ 40,496,522 - - 40,496,522 -
- - - - 193,973
- - - 20,120,470 -
- - - 10,502,295 -
- - - 11,470,683 -
- - 561,112 43,786,287 -
81,107,805 8,668,005 59,721,017 992,545,081 39,472,742
- 867,765 2,675,931 75,029,968 8,396,743
59,885,259 8,090,909 53,683,823 674,367,884 13,636,273
2,033,263 - - 2,033,263 12,789,818
- - - 6,179,170 -
- - - 9,785,427 -
- - - 1,158,632 713,293
17,438,287 25,141 1,566,634 49,662,097 2,473,907
79,356,809 8,983,815 57,926,388 818,216,441 38,010,034
1,750,996 (315,810) 1,794,629 174,328,640 1,462,708
18,819,490 58,652 232,992 35,798,886 -
- 175,782 - 11,712,312 -
- - 11,466 3,609,274 -
- 128,606 - 44,104,209 2,036,276
(11,690,232) - - (15,453,779) (40,662)
- - - (550,331) -
- - - 18,555,751 -
- - - 1,071 (30,107)
7,129,258 363,040 244,458 97,777,393 1,965,507
8,880,254 47,230 2,039,087 272,106,033 3,428,215
3,467,625 - - 3,467,625 -
- - 847,864 1,555,748 4,955,105
- (177,258) (27,443) (4,081,673) (555,904)
12,347,879 (130,028) 2,859,508 273,047,733 7,827,416
111,520,156 6,291,047 32,320,527 13,063,350
8,745,417 - - -
120,265,573 6,291,047 32,320,527 13,063,350
$ 6,161,019 $ 132,613,452 $ 35,180,035 $ 20,890,766
(2,068,210)
$ 270,979,523

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
For the year ended June 30, 2024
Business-type Activities-Enterprise Funds
See accompanying notes to basic financial statements
50 Electric Water Sewer
Utility Utility Utility

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 56,268,434 668,767,150 $ 44,310,904 $ Payments to suppliers (46,305,916) (465,537,231) (29,405,529) Payments to employees for salaries and benefits (56, (6,838,553) 790,537) (3,667,375) Internal activity - payments to other funds - - -
Claims paid - - -
Rents, royalties and licenses received 4,543,348 53,879 53,879 Other receipts (payments) (261,498) 48,902,208 3,830,543 Renewable energy credits - 10,502,295 -
Wholesale resource sales - 11,470,683 -
Wholesale resources purchases - (9,785,427) -
Resource trading escrow deposit 1,677,372 - -
Charges for joint project contributions - - (13,099,087) Net cash provided (used) by operating activities 213 2,916,346 ,749,861 2,023,335

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
(Increase) in due from other funds (807,346) (342,982) (161,693) Decrease in due from other funds - - -
Increase in due to other funds - - -
Deposits to (withdraws from) pension rate stabilization fund 3,741,829 667,520 373,208 Transfers in 218,118 376,500 113,266
Transfers (out) (832,275) (2,885,902) (158,795)
Cash Flows from Noncapital Financing Activities 425, (289,619) 081 165,986

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Contribution from Community Facilities District - - -
Acquisition and construction of capital assets, net (3,495,175) (63,780,946) (6,250,530) Proceeds from sale of assets 1,071 - -
Proceeds from debt - - 34,585,000
Premium on issuance of debt - - 1,367,609
Cost of issuance - - (550,331)
Principal payments on capital debt (16,292,173) - (20,798,120) Interest paid on capital debt - (2,555,621) (909,865)
Cash Flows from Capital and Related
Financing Activities (3,494,104) (82,628,740) 7,443,763

CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease in the fair value of investments 8,702, 733,792 128 2,100,610 Interest and dividends 568,570 11,877,286 1,948,611
Fiscal agent investment sales - 17,593,392 -
Fiscal agent investment purchases (17,992,362) - -
Cash Flows from Investing Activities 20,180,444 1,302,362 4,049,221 For the year ended June 30, 2024
Business-type Activities-Enterprise Funds

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
Statement of Cash Flows
See accompanying notes to basic financial statements
51 Water Santa Clara Non-Major
Recycling Stadium Authority Enterprise Internal Service Utility (as of March 31, 2024) Funds Totals Funds
$ 41,368,043 8,109,065 $ 57,866,548 $ 876,690,144 $ 39,322,277 $ (38,995,500) (7,894,410) (52,234,959) (640,373,545) (14,829,607) - (873,547) (2,200,682) (70,370,694) (8,095,531)
- - - - (405,304)
- - - - (11,139,607)
47,106,805 - 11,466 51,769,377 -
- 63,806 560,272 53,095,331 2,036,276
- - - 10,502,295 -
- - - 11,470,683 -
- - - (9,785,427) -
- - - 1,677,372 -
- - - (13,099,087) -
49,479,348 (595,086) 4,002,645 271,576,449 6,888,504
- - - (1,312,021) (3,644)
- - 39,778 39,778 -
330,234 - - 330,234 1,275,886
- 64,800 - 4,847,357 -
- - 847,864 1,555,748 4,955,105
- (177,258) (27,443) (4,081,673) (555,904)
330,234 (112,458) 860,199 1,379,423 5,671,443
2,840,331 - - 2,840,331 -
(7,079,493) - (735,235) (81,341,379) (3,681,678)
- - - 1,071 -
- - - 34,585,000 -
- - - 1,367,609 -
- - - (550,331) -
(16,606,911) - - (53,697,204) (800,003)
(12,076,707) - - (15,542,193) (40,662)
(32,922,780) - (735,235) (112,337,096) (4,522,343) (continued) - 175,782 - 11,712,312 -
5,803,963 63,804 232,992 20,495,226 -
(28,306,155) - - (10,712,763) -
36,661,687 - - 18,669,325 -
14,159,495 239,586 232,992 40,164,100 -
(continued)
Business-type Activities-Enterprise Funds

STATEMENT OF CASH FLOWS
For the year ended June 30, 2024

CITY OF SANTA CLARA

PROPRIETARY FUNDS
See accompanying notes to basic financial statements
52 Electric Water Sewer
Utility Utility Utility
Net increase (decrease) in cash and cash
equivalents 434,985 151,726,646 13,682,305
Cash and cash equivalents at beginning of period 467 27,216,430 ,379,902 89,435,012 Cash and cash equivalents at end of period $ 619,106,548 $ 27,651,415 $ 103,117,317 Cash and cash equivalents:

Pooled cash and investments $ 25,420,688 609,040,674 $ 102,158,565 $ Restricted cash 2,230,727 10,065,874 958,752
Total cash and cash equivalents $ 619,106,548 $ 27,651,415 $ 103,117,317 Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating income (loss) $ (925,693) 161,487,501 $ 10,537,017 $ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
(Decrease) Increase in lease and SBITA obligation (3 - 4,360) - (Decrease) Increase in due to OPEB system (404,151) (89,024) (42,300) (Decrease) Increase in due to retirement system 3,23 702,886 0,418 197,534 Depreciation 1,927,329 28,480,946 1,382,392
Change in assets and liabilities:

Receivables, net (769,353) (30,948,216) (219,337)
Inventory 132,015 (3,539,456) -
Restricted Cash (667,520) (3,741,829) (373,208)
Accrued liabilities 2,108,870 14,234,570 (717,439)
Long-term portion estimated claims - - -
Compensated absences 37,299 456,648 100,497
Unearned revenue - - -
Other receipts 459,537 42,850,418 4,257,266
Wholesale trading escrow deposit 1,677,372 - -
Charges for joint project contributions - - (13,099,087) Net cash provided (used) by operating activities $ 213,749,861 $ 2,916,346 $ 2,023,335 NONCASH TRANSACTIONS:

Joint Ventures
Nonoperating income (loss) $ (635,169) $ - $ 19,190,920 $ - - $ - $
$ - 729,014 $ - $
$ - (729,014) $ - $
For the year ended June 30, 2024
Business-type Activities-Enterprise Funds

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
Addition of SBITA Asset
Issuance of SBITA Liability
Capital Contribution
See accompanying notes to basic financial statements
53 Water Santa Clara Non-Major
Recycling Stadium Authority Enterprise Internal Service Utility (as of March 31, 2024) Funds Totals Funds
31,046,297 (467,958) 4,360,601 200,782,876 8,037,604
66,012,284 7,096,078 23,671,028 680,810,734 43,757,149
$ 6,628,120 $ 97,058,581 $ 28,031,629 $ 881,593,610 $ 51,794,753 $ 18,485,558 6,459,997 $ 25,733,041 $ 787,298,523 $ 51,794,753 $ 78,573,023 168,123 2,298,588 94,295,087 -
$ 6,628,120 $ 97,058,581 $ 28,031,629 $ 881,593,610 $ 51,794,753 $ 1,750,996 (315,810) $ 1,794,629 $ 174,328,640 $ 1,462,708 $ 7,745,256 - - 7,710,896 713,294
- (6,218) (21,950) (563,643) (39,095)
- (454) 327,148 4,457,532 262,976
17,438,287 25,141 1,566,634 50,820,729 2,473,907
657,660 (558,942) (364,392) (32,202,580) 39,529
- - - (3,407,441) (1,501,939)
- (64,800) - (4,847,357) -
22,428,022 196,501 1,448,864 39,699,388 322,517
- - - - 1,041,000
- 890 170,051 765,385 77,331
(540,873) - (929,805) (1,470,678) -
- 128,606 11,466 47,707,293 2,036,276
- - - 1,677,372 -
- - - (13,099,087) -
$ (595,086) $ 49,479,348 $ 4,002,645 $ 271,576,449 $ 6,888,504 $ - $ - $ - $ 18,555,751 $ -
$ 3,467,625 - $ - $ 3,467,625 $ - $
$ - - $ - $ 729,014 $ - $
$ - - $ - $ (729,014) $ - $
For the year ended June 30, 2024
Business-type Activities-Enterprise Funds

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
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55 CITY OF SANTA CLARA

FIDUCIARY FUNDS
These funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements.

PRIVATE PURPOSE TRUST FUNDS
These funds are used to report resources of all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments.

CUSTODIAL FUNDS
Custodial funds are used to account for assets held by the City for community or private organizations, or as an agent for its employees or for assessment districts. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements. Individual nonmajor Custodial funds may be found in the Supplementary section.

See accompanying notes to basic financial statements
56 Statement of Fiduciary Net Position
Private Purpose Custodial
Trust Funds Funds
ASSETS
Current assets
Cash and investments:

Pooled cash and investments (Note 7) 1,556,057 $ 945,303 $ Receivables (net of allowance for uncollectibles):

Interest and rent - 195,975
Leases receivable (Note 22) - 896,947
Total current assets 945,303 2,648,979
Noncurrent assets
Leases receivable-noncurrent (Note 22) 41,927,423 -
Investment with fiscal agent-noncurrent-noncurrent (Note 7) 2,902,022 - Land held for resale - 532,542
Total noncurrent assets - 45,361,987
Total Assets 945,303 48,010,966

LIABILITIES
Accrued liabilities 1,100 -
Unearned revenues - 122,008
Due to other agencies - 740,000
Total Liabilities 1,100 862,008

DEFERRED INFLOWS OF RESOURCES
Leases related (Note 22) - 40,393,601
Total deferred inflows of resources 40,393,601 -

NET POSITION
Held in trust for private purpose - 3,721,814
Restricted for individuals, organization and other governments 3,033,543 944,203 Total Net Position $ 6,755,357 $ 944,203

CITY OF SANTA CLARA

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
June 30, 2024
See accompanying notes to basic financial statements
57 Statement of Fiduciary Net Position
Private Purpose Custodial
Trust Funds Funds

ADDITIONS
Contributions:

Employee contributions $ 63,557 - $
Other plans 3,281,253 -
Gifts and bequest 1,740 -
Total contributions 3,346,550 -
Investment income:

Net change in fair value of investments 129,146 -
Interest and rents 3,725,137 8,012
Net investment income 3,854,283 8,012
Total additions 3,354,562 3,854,283

DEDUCTIONS
General and administrative 109,464 83,063
Benefits paid 56,059 -
Pass through to the Stadium Authority - 3,105,273
Pass through to the County of Santa Clara 2,920,000 -
Total deductions 3,029,464 3,244,395
110,167 824,819
Net position - beginning 5,930,538 834,036
Net position - ending $ 6,755,357 $ 944,203

CITY OF SANTA CLARA

FIDUCIARY FUNDS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Year Ended June 30, 2024
Net increase (decrease) in fiduciary net
position
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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
59 Notes to Basic Financial Statements
NOTE 1 – DEFINITION OF THE REPORTING ENTITY
The City of Santa Clara (City), also known as the Mission City, is a charter city incorporated in 1852 under the laws of the State of California. The City Charter establishes the Council/Manager form of government.

The City’s citizens elect a City Council of seven citizens, six councilpersons and a Mayor elected at-large, who serve a term of four years each, and who, in turn, appoint a City Manager.

The City is located in the County of Santa Clara, California, approximately 45 miles southeast of San Francisco. It is situated in the northern part of the County and occupies approximately 18.41 square miles.

The City's population of 132,048 accounts for 6.95% of the total Santa Clara County estimated population of

1.9 million.

The City provides a full range of municipal services, including police and fire, library, recreation, community services, public works, parks, sanitation, planning and community development, public improvements, electric, water and sewer services.

The accompanying basic financial statements present the financial activity of the City, which is the primary government presented, along with the financial activities of its component units. Although they are separate legal entities, blended component units are in substance part of the City’s operations and are reported as an integral part of the City’s financial statements. The City’s component units which are described below are all blended.

A. City of Santa Clara Sports and Open Space Authority
The City of Santa Clara Sports and Open Space Authority (SOSA) was created by the City Council in 1974 for the acquisition and development of open space within the City. The members of the City Council are also members of SOSA's Board of Directors and, as such, are authorized to transact business and exercise power to purchase, lease or otherwise obtain and dispose of real and personal property, to acquire, construct, maintain, repair, manage and operate real and personal property, including leasing to private operators for commercial purposes, surplus space which is not economical to use for open space planning. The City performs all accounting and administrative functions of SOSA. The operations of SOSA have been included in the Supplementary Information section in the Non-Major Enterprise Funds.

B. City of Santa Clara Public Facilities Financing Corporation The City of Santa Clara Public Facilities Financing Corporation (PFFC) was formed in 1997 for the purpose of issuing Certificates of Participation (COPs) to provide financing for the construction of the major City facilities. Members of the City Council are also members of the PFFC Board. Debt service on the COPs is secured by lease payments made by the City's General Fund to the PFFC for the use of the constructed facilities for public purposes. In accordance with lease agreements, the PFFC assigns lease payments received from the City to the trustee for payment to the certificate holders. The operations of PFFC have been included in the Supplementary Information section in the Non-Major Governmental Fund. The individual COPs and the related facilities are described in Note 10B.

C. Santa Clara Housing Authority
The Santa Clara Housing Authority (SCHA) was established by the City Council in 2011 to assume the responsibility of housing projects for the former Redevelopment Agency (former RDA). SCHA also assumes the responsibility for housing loans, which are long-term and were made under various programs, for

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 1 – DEFINITION OF THE REPORTING ENTITY (continued) 60 qualifying individuals and groups. The members of the City Council are also members of SCHA's Board of Directors and, as such, are authorized to transact business and exercise power to plan, engineer, and implement development projects. The City performs all accounting and administrative functions of SCHA. The financial activities of SCHA have been reported in the accompanying Non-Major Governmental Fund financial statements.

D. Santa Clara Stadium Authority
The Santa Clara Stadium Authority (SCSA) was established by the City Council in 2011 to provide for development and operation of Levi’s Stadium. The members of the City Council are also members of SCSA's Board of Directors and, as such, are authorized to manage the stadium, transact business and exercise power to plan, engineer, and construct the stadium. The City performs all accounting and administrative functions of SCSA. The financial activities of SCSA have been reported in the accompanying Enterprise Fund financial statements.

On November 13, 2012, an amendment was made to the JPA Agreement to change SCSA’s fiscal year end date from June 30th to March 31st. As such, the financial activities reported for SCSA are as of fiscal year ended March 31, 2024. In addition, the annual financial report was audited by KPMG, an independent auditing firm, and a copy of the report can be found on the City’s website.

NOTE 2 - FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT

ACCOUNTING POLICIES
A. Basic Financial Statements
The City's Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

The significant accounting policies are described below:

Government-wide Financial Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. Interfund Services provided and used are allocated to governmental and business-type activities, as appropriate. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.

Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities.

Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
61 acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds and blended component units. Separate statements for each fund categorygovernmental, proprietary, and fiduciary-are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non-major funds, except for fiduciary funds.

Enterprise funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with an enterprise fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds are charges to customers for services. Operating expenses for the City's enterprise funds include the costs of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

B. Major Funds
Major funds are defined as funds that have either assets combined with deferred outflows of resources, liabilities combined with deferred inflows of resources, revenues or expenditures/expenses equal to 10% of corresponding totals for all governmental or enterprise funds and at least 5% of the aggregate amount to all governmental and enterprise fund for the same item. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds. All other funds, called non-major funds, are combined, and reported in a single column, regardless of their fund-type.

The City reported the following major governmental funds in the accompanying financial statements:

General Fund - This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Santa Clara Housing Successor Fund - This fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The activities are governed by Community Redevelopment Law and must be used to provide housing for people with low and moderate incomes. Revenues received are primarily loan repayments on low income loans and investment earnings that are restricted for use on other low and moderate income housing loans and projects.

The City reported the following enterprise funds as major funds in the accompanying financial statements:

Electric Utility Fund - This fund accounts for the operation of the City's electric utility, a self-supporting activity that provides services on a user charge basis to residences and businesses.

Water Utility Fund - This fund accounts for the operation of the City's water utility, a self-supporting activity that provides services on a user charge basis to residences and businesses.

Sewer Utility Fund - This fund accounts for the maintenance of the City's sewer lines and related facilities. It is a self-supporting activity that provides services on a user charge basis to residences and businesses.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
62 Water Recycling Utility Fund - This fund accounts for the ongoing maintenance and operations of the City's wastewater reclamation system. It is a self-supporting activity that provides services on a user charge basis from the sale of non-potable water for irrigation and landscaping.

Santa Clara Stadium Authority Fund - The Stadium Authority was established to provide for development and operation of Levi’s Stadium.

The City also reports the following fund types:

Internal Service Funds - These funds account for maintenance of vehicles and communication equipment, information technology, public works capital project management, general liability, and workers' compensation claims, all of which are provided to other departments on a cost-reimbursement basis.

Fiduciary Funds - These funds account for assets held by the City in trust for community or private organizations, or as an agent for its employees or for assessment districts without city commitment. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements.

The Successor Agency to the Redevelopment Agency of the City of Santa Clara (Successor Agency) was created to serve as a custodian for the assets and to wind down the affairs of the former RDA. The Successor Agency is a separate public entity from the City, subject to the direction of an Oversight Board. The Oversight Board is comprised of seven-member representatives from local government bodies: two County of Santa Clara (County) representatives; the Mayor of the City of Santa Clara; the County Superintendent of Education; the Chancellor of California Community Colleges; one Santa Clara Valley Water District representative; and one former RDA employee appointed by the Mayor. The City performs all accounting and administrative functions of the Successor Agency. The financial activities of the Successor Agency have been reported in the accompanying basic financial statements in the Private Purpose Trust Fund. See Notes 21 and 22 for information regarding the Successor Agency.

C. Basis of Accounting
The government-wide financial statements and the fund category, proprietary, and fiduciary fund category financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, including lease liabilities and subscription-based IT arrangement (SBITA) liabilities as well as claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions, including entering into contracts giving the City right to use leased assets and SBITA assets, are reported as expenditures in governmental funds. Proceeds of general long-term debt, financing through leases, and issuance of subscription liabilites are reported as other financing sources.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
63 The City allocates certain indirect expenses incurred by the General Government activity to those activities that benefit from services received.

During the year ended June 30, 2024, the City implemented the following GASB Statements:

The GASB issued Statement No. 100, Accounting Changes and Errors Corrections. The objective of this statement is to establish accounting and financial reporting requirements for (a) accounting changes and (b) the correction of an error in previously issued financial statements. The provisions of this Statement were implemented during fiscal year 2024. The implementation required a change to the disclosure in Note 6.

The City is analyzing the effects of the following pronouncements and plans to adopt them by the effective dates:

The GASB issued Statement No. 101, Compensated Absences. The objective of this statement is to amend the existing requirements for the recognition of compensated absences liability. This statement becomes effective for periods beginning after December 15, 2023. The City is currently evaluating the impact on the financial statements.

The GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. This statement is effective for fiscal years beginning after June 15, 2024. The City is currently evaluating the impact on the financial statements.

The GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This statement is effective for fiscal years beginning after June 15, 2025. The City is currently evaluating the impact on the financial statements.

The GASB issued Statement No. 104, Disclosure of Certain Capital Assets. The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. This statement is effective for fiscal years beginning after June 15, 2025. The City is currently evaluating the impact on the financial statements.

D. Cash and Investments
While maintaining safety and liquidity, the City maximizes investment return by pooling its available cash for investment purposes. Unless there are specific legal or contractual requirements to do otherwise, interest earnings are apportioned among funds according to average monthly cash and investment balances. It is generally the City's intention to hold investments until maturity. City investments are stated at fair value (see Note 7).

Cash and cash equivalents for purposes of the statement of cash flows include pooled cash and investments and cash designated for construction. Transactions with City-wide cash management pools are similar to those with external investment pools; therefore, since pooled cash and investments have the same characteristics as demand deposits in that the City's individual funds and component units may withdraw additional monies at

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
64 any time without prior notice or penalty, pooled cash and investments are considered essentially demand deposit accounts.

Cash and investments with fiscal agent, a bond reserve investment pool, and amounts classified as deposits are not considered cash and cash equivalents.

E. Interfund Transactions and Balances
During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. The related receivables and payables are classified as "due from other funds," and "due to other funds" in the fund financial statements. Long-term interfund receivables and payables are recorded as advances to/from other funds in the fund financial statements.

Transactions constituting reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are generally recorded as expenditures/expenses in the reimbursing fund and as revenue in the fund that is reimbursed.

Internal balances represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business-type activities, and are reported only in the government-wide financial statements.

F. Inventory of Materials and Supplies
Inventory of materials and supplies is accounted for using the consumption method and is stated at average cost. Inventory consists of expendable supplies held for consumption by all departments of the City. The cost is recorded as an expenditure or expense in the appropriate fund at the time individual inventory items are withdrawn for use. The General Fund inventory amount is equally offset by a non-spendable fund balance, which indicates that it does not constitute available expendable resources.

G. Restricted Assets
Restricted assets are monies or other resources, the use of which is restricted by legal or contractual requirements.

H. Land Held for Development
The Santa Clara Housing Successor, through execution of an assignment and assumption agreement with the City and the former RDA has assumed responsibility for housing projects and parcels of land purchased to develop or redevelop blighted properties within the Redevelopment areas. Such land parcels are accounted for as investments on the balance sheet at the lower of cost or net realizable value or agreed-upon sales price if a disposition agreement has been made with a developer.

Individual parcels which have experienced other than temporary fair value decline are written down to estimated current market value. No appreciation is recorded if the current estimated net realizable value of an individual parcel exceeds cost.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
65 I. Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available except for intangible right-to-use lease assets, the measurement of which is discussed in Note 2X below, and right-to-use subscription assets, the measurement of which is described in Note 2J below. Contributed capital assets are valued at their estimated acquisition value on the date contributed. The City's policy is to capitalize equipment and right-to-use leased equipment with costs exceeding $5,000, buildings, improvements and infrastructure with costs exceeding $20,000, and the right-to-use Subscription based IT Arrangement (SBITA) with costs exceeding $400,000.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Public domain (infrastructure) assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and traffic signals, have been capitalized and reported in the government-wide financial statements. Depreciation has been calculated on all capital assets, including infrastructure, the right-to-use leased buildings and equipment, and the right-to-use SBITA assets on a straight-line basis over the estimated useful lives of the assets.

Useful Lives
Years
Capitalization
Threshold
Buildings and improvements 20-50 $ 20,000
Right-to-use leased buildings 20-50 20,000
Land improvements 20-50 20,000
Machinery and equipment 3-25 5,000
Right-to-use leased equipment 3-25 5,000
Right-to-use SBITA assets 3-25 400,000
Infrastructure 10-50 20,000
Some capital assets may be acquired using Federal and State grant funds, or they may be contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets.

Capital assets and the related obligations acquired under lease/purchase agreements are capitalized and accounted for in accordance with current accounting standards.

J. Subscription-Based Information Technology Arrangements (SBITAs) Accounting A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchangelike transaction.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
66 At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the contract term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or the useful life of the underlying IT assets. The City recognizes SBITA liabilities with an initial, individual value of $400,000 or more for all funds.

Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
 The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City uses its estimated incremental borrowing rate as the discount rate for subscription liabilities.
 The subscription term includes the noncancellable period of the subscription.  Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its subscription and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

Subscription assets are reported with other capital assets and subscription liabilities are reported with liabilities on the statement of net position.

K. Joint Ventures
The City participates in several joint ventures. In accordance with GAAP investments in these joint ventures are accounted for on the equity method (see Note 12). If the City's equity in net losses of joint ventures exceeds its investment, use of the equity method is suspended except to the extent that the City is obligated to provide further financial support or has guaranteed obligations of the joint ventures.

The City advances funds to certain of its joint ventures in the form of refundable advances, project advances and operating and maintenance advances. Refundable advances accrue interest at rates stated in the related agreements. Operating, maintenance and project advances are charged to operations when incurred.

Capitalized project costs are charged to operations in the event that a project is determined to be not economically feasible.

L. Compensated Absences
Amounts of vested or accumulated vacation leave and certain benefits that are not expected to be liquidated with expendable available financial resources are reported in the Governmental Activities portion of the

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
67 government-wide financial statements only. Vested or accumulated vacation leave and benefits of proprietary funds are recorded as an expense and liability of those funds as the benefits accrue to employees. Vacation time is earned based on length of service in amounts ranging between 10 and 24 days per year. City employees are allowed to carry over unused vacation earned. The maximum amount of time that can be carried over varies, depending on the employee's rate of accrual, with an upper limit of 400 hours for most employees.

Employees are paid for unused vacation and certain benefits upon separation from employment.

In accordance with GAAP a liability for sick leave and benefits is accrued using the vesting method. The vesting method provides that a governmental entity estimates its accrued sick leave liability based on the sick leave accumulated at the balance sheet date by those employees who currently are eligible to receive termination payments as well as other employees who are expected to become eligible in the future to receive such payments. Amounts of sick leave payments that are not expected to be liquidated with expendable available financial resources are reported in the Governmental Activities portion of the government-wide financial statements only. No expenditure is reported for these amounts in the governmental fund financial statements.

That portion of compensated absences that is unused reimbursable leave still outstanding following an employee's resignation or retirement at year end, is an expense and current liability to the respective fund(s) that an employee charges their time to.

The accrual for compensated absences comprised the following at June 30, 2024. The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund.

Governmental Business-Type
Activities Activities Total
Beginning Balance 20,664,568 $ 7,691,320 $ 28,355,888 $ Additions 2,686,089 1,270,655 3,956,744
Payments (1,142,849) (505,270) (1,648,119)
Ending Balance $ 22,207,808 $ 8,456,705 $ 30,664,513
Current Portions 1,517,925 $ 578,025 $ 2,095,950 $
M. Risk Management
The City is self-insured up to $3 million to provide general liability protection. In addition to the City's selfinsurance, the City also maintains excess general liability with coverage up to $50 million.

The City is also self-insured up to $750,000 per claim for Workers' Compensation Claims. These selfinsurance programs are administered by outside agencies. The City also maintains excess workers' compensation insurance for workers' compensation claims over $750,000 per claim with coverage up to statutory limits with PRISM (formerly CSAC Excess Insurance Authority).

The City maintains property damage coverage through the Public Entity Property Insurance Program (APIP), which has a plan limit of $1 billion. The City maintains boiler and machinery property coverage of $100

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
68 million per occurrence in excess of self-insured amounts varying from $25,000 to $100,000 per occurrence.

No claims settlement amount exceeded the City's insurance coverage in the past fiscal years.

The City also maintains a Faithful Performance, Crime Coverage Bond with a plan limit of $20 million through PRISM.

The City also had property coverage specific to the electric power plants which has a plan limit of $250 million.

N. Long-Term Obligations
Long-term obligations are reported in the Governmental Activities portion of the government-wide financial statements. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in those funds.

O. Pensions
For purposes of measuring the net pension liability and deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Santa Clara, California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to and deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

P. Accounting for Encumbrances
The City utilizes an encumbrance system of accounting wherein encumbrances outstanding at year end, for which the goods or services have not been received, are not reported as expenditures, but are reported as a component of the fund balance category available for subsequent year expenditures based on the encumbered appropriation authority carried over to the next fiscal year. The City Charter requires recording encumbrances as a charge against appropriations in the accounting period in which a purchase order is issued, rather than in the accounting period when goods or services are received.

Under the modified accrual basis of accounting, in accordance with GAAP, expenditures are recorded when the goods or services are received. Adjustments to convert expenditures from the modified accrual basis to the budgetary basis are reflected in the schedule of revenues, expenditures, and changes in fund balances - budget and actual (non-GAAP legal basis) (see Note 3 and Required Supplementary Information).

Q. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has four items that qualify for reporting in this category: deferred outflows related to the derivative instruments, refunding of debt, pension, and OPEB.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
69 In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. In the government‐wide financial statements the City reports deferred amounts related to derivative instruments, refunding of debt, leases and deferred amounts related to pension and OPEB.

R. Net Position and Fund Balance Equity
Fund balances and net position are reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. For governmental fund reporting, the City considers restricted fund balance to have been spent first when an expenditure is incurred, followed by committed, assigned and unassigned fund balances (in order of spending). For government-wide reporting, the City considers restricted net position to have been spent first when an expenditure is incurred, followed by unrestricted net position.

S. Bond Discounts/Premiums
In governmental funds, bond discounts and premiums are recognized in the current period. Bond discounts and premium for proprietary funds and entity-wide financial statements are deferred and amortized over the term of the bonds using the straight-line method of accounting.

T. Property Taxes
The State of California Constitution Article XIII A provides that the combined maximum tax rate on any given property may not exceed 1% of its assessed value except for voter approved incremental property taxes adopted prior to the passage of Article XIII A and any additional amount for general obligation debt approved by voters subsequent to the passage of Article XIII A.

Assessed value is calculated at 100% of market value as defined by Article XIII A and may be increased by no more than 2% per year unless there is a new construction on the property or the property is sold or transferred. The State Legislature has determined the method of distribution of receipts from the 1% tax levy among the counties, cities, school districts and other districts.

Santa Clara County (County) assesses properties and bills and collects property taxes on behalf of the City as follows:

Secured Unsecured
Valuation dates January 1 January 1
Lien/levy dates January 1 January 1
Due dates 50% on November 1, 50% on February 1 Upon receipt of billing Delinquent as of December 10 (for November), April 10 (for February)
August 31
The term "unsecured" refers to taxes on property not secured by liens on real property and generally includes business use personal property.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
70 The City participates in the Teeter Plan offered by the County whereby cities receive 100% of secured property tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes.

Property taxes levied are recorded as revenue when received from the County. Property taxes expected to be collected within 60 days of the end of the fiscal year are recorded as revenue.

The City's net assessed valuation for the year ended June 30, 2024, was $61 billion, an increase of 7.0% compared to the previous year. The average tax rate was 1.17% per $100 of assessed valuation.

U. Contribution In-Lieu of Taxes
Contribution in lieu of taxes is a general revenue of the governmental funds. It is levied on receipts of the Cityowned and operated Electric Utility (Silicon Valley Power) in accordance with the City Charter. Non-City owned and operated electric utilities pay a franchise fee, which is also a governmental activities general revenue source.

V. Special Assessment Districts with City Commitment
Recognition of revenue related to noncurrent receivables of special assessment district funds is deferred until such receivables become current. There is no reserve for delinquent receivables since liens exist against the related properties and hence the City's management believes the City will ultimately receive value equal to the delinquent receivables. Surplus fund balances remaining at the completion of a special assessment district project are disposed of in accordance with City Council resolutions and with the applicable assessment bond laws of the State of California.

W. Income Taxes
The City falls under the purview of Internal Revenue Code, Section 115 and corresponding California Revenue and Taxation Code provisions. As such, it is not subject to federal or state income taxes.

X. Lease Agreements
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction.

Examples of nonfinancial assets include buildings, land, vehicles, and equipment.

Lessee - The City is a lessee for noncancellable lease of equipment and buildings. The City recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs.

Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
71 Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:
 The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease.  Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.

Lessor - The City is a lessor for noncancellable leases of land, building, and fiber optics. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
 The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease.  Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. During the current fiscal year, the City has not engaged in any sublease transactions, sale-leaseback arrangements, or lease-leaseback agreements.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
72 Y. Arbitrage Rebate Liability
Arbitrage rebate liabilities, if any, are included in accrued liabilities.

Z. Revenue Recognition
Electric, Water, Sewer and Solid Waste Fund revenues are recognized based on cycle billings periodically rendered to customers. Revenues for services provided, but not billed at the end of a fiscal year, are recognized and accrued based on estimated consumption.

Governmental Activities revenues subject to accrual include taxes, intergovernmental revenues, interest and charges for services.

AA. Non-exchange Transactions
The City gives or receives value without directly receiving or giving equal value in exchange, including grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

BB. Financial Instruments
Financial instruments included in the City's basic financial statements, excluding cash and investments, consisted of accounts receivable, accrued liabilities and bonds payable. The carrying amounts are a reasonable estimate of fair value.

CC. Conditional Grants
The City has several programs under which it extends loans to qualifying individuals or groups for the purpose of improving the City's housing stock and/or its supply of low-and moderate-income housing. Certain of these loans provide for the eventual forgiveness of the loan balance if the borrower complies with all the terms of the loan over its full term. The City accounts for these loans as conditional grants in the City-wide financial statements, and provides a reserve against their eventual forgiveness using the straight-line method over the life of the respective loan. As of June 30, 2024, conditional grants of $24,257,245 were offset by reserves of $10,035,548.

DD. Use of Estimates
The preparation of basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the basic financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
73 EE. Vehicle Registration Fee
On November 2, 2010, Santa Clara County voters approved Measure B, which levies a $10 annual vehicle registration fee (VRF). The statue requires that fees collected be used only to pay for programs and projects that have a relationship or benefit to the owners of motor vehicles paying the fee and are consistent with the regional transportation plan. All revenue collected by Santa Clara Valley Transportation Authority, administrator of VRF are allocated on a population basis to cities in Santa Clara County. The City has committed and used the revenue from Measure B towards various street maintenance and traffic signal timing upgrade projects. The Vehicle Registration Fees are reported in the Streets and Highways Improvement Capital Projects Fund.

As of June 30, 2024, the balance of the Vehicle Registration Fees are as follows:

Vehicle Registration
Fee
Beginning Balance July 1, 2023 3,498,667 $
Intergovernmental revenue 981,645
Interest 67,593
Expenditures (1,011,440)
Ending Balance June 30, 2024 $ 3,536,465
NOTE 3 – BUDGETS AND BUDGETARY ACCOUNTING
The budget of the City is a detailed operating plan that identifies estimated costs and activities in relation to estimated revenues. The budget includes: (1) the projects, services and activities to be provided during the fiscal year, (2) the estimated revenue available to finance the operating plan, and (3) the estimated spending requirements of the operating plan.

The budget process is the mechanism through which policy decisions are made, implemented and controlled.

The City Charter requires that the City establish a budgetary system for general operations and prohibits expending funds for which there is no legal appropriation. The City is required to adopt a budget on or before June 30 for the ensuing fiscal year that begins July 1. Activities of the General Fund, the Santa Clara Housing Successor, and the Maintenance Special Revenue Funds are included in the annual appropriated operating budget. The procedures followed to establish the budgetary data reflected in the accompanying required supplementary information to the basic financial statements are as follows:

1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. This includes a Five-Year Financial Plan to aid in the planning and funding of operations and capital projects over the next five years.

2. Public hearings are conducted to obtain public comments.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 3 – BUDGETS AND BUDGETARY ACCOUNTING (continued)
74 3. The operating and capital budgets are legally enacted through the passage of a minute order.

From the effective date of the budget, the amounts stated therein as proposed expenditures become appropriations to the applicable governmental funds. The City Council may amend the budget by motion during the fiscal year. The legal appropriation control is established at the department level in each fund. For select funds where expenditures are not allocated to a specific department, the appropriation control is established at the fund level. Transfers of funding between budgetary funds require City Council appropriation and approval. City Council approval is required for a budget amendment during the fiscal year which may include the use of reserves or fund balances, and approval of appropriations of grant monies. Per Article XIII, Section 1305 of the City Charter, appropriations lapse at the end of each fiscal year; therefore, unencumbered funds allocated for specific projects, donations, and grants require City Council appropriation for use in the following fiscal year.

Budgetary transfers between accounts or expenditure category may be done through Finance Department or City Manager’s Office approval as long as they are conducted within the legal appropriation control limit set by the City Council.

Budget information is presented on a non-GAAP budgetary basis. Budgeted revenue amounts represent the original budget modified by adjustments authorized during the year. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations and transfers during the year. Budget amounts in the schedules of revenues, expenditures and changes in fund balances-budget and actual, include supplemental appropriations approved by the City Council during the year.

For the actual GAAP basis financial statements, encumbered appropriations are not reported as expenditures, but are reported as a reservation of fund balance available for subsequent year expenditures, based on the encumbered appropriation authority carried over to the next fiscal year.

In addition to the annual Operating Budget, each year the City Council adopts a project length Capital Improvement Project budget biennially.

NOTE 4 – LEASE AGREEMENTS
In June 2017, the Government Accounting Standards Board (GASB) issued Statement No. 87, Leases. GASB Statement No. 87 (GASB 87) increases the usefulness of governmental financial statements by requiring recognition of certain lease assets and liabilities for all leases, including those that previously were classified as operating leases and recognized as income by lessors and expenditures by lessees. GASB 87 replaces the previous lease accounting methodology and establishes a single model for lease accounting based on the foundational principle that leases are a financing of the right to use an underlying asset.

This Statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The provisions of this Statement were implemented during fiscal year 2021-22.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 4 – LEASE AGREEMENTS (continued)
75 The balances related to leases receivable and deferred inflows of resources as of June 30, 2024 are:

Leases Receivable
Deferred Inflow of
Resources
Governmental activities
General Fund 251,591,700 $ 245,748,566 $
Business-type activities
Electric Utility $ 1,997,165 2,112,910 $
Water Utility 831,430 908,045
Sewer Utility 908,045 831,430
Stadium Authority (as of March 31, 2024) 594,217,262 578,569,323 $ 582,229,348 598,146,262 $
Total leases receivable $ 849,737,962 $ 827,977,914
A discussion of the most significant leases follows:

A. Peddler’s Plaza and Commerce Plaza Leases
During the current fiscal year, the City began leasing the two properties located at 1000 Lafayette Street, known as Peddler’s Plaza, and 900 Lafayette Street, known as Commerce Plaza. In 1971, the City entered long-term ground leases which expired in September 2021 and April 2022 respectively. These two properties have been long discussed as integral components of a long-term vision for rebuilding downtown. The planning process on a specific plan for downtown is not complete and it will be several more years before any redevelopment of the properties could begin to occur. The two buildings are occupied, and it would be beneficial to the City if there is ongoing occupancy of the structures.

The City extended their respective current leases under generally the same terms for a limited period (up to two years) to allow time for the City and its new management company to transition into their new roles. The City recognized $27,768 in lease revenue and $16 in interest revenue for Peddler’s Plaza, $1,397,335 in lease revenue and $2,198 in interest revenue for Commerce Plaza, during the current fiscal year related to these two leases.

Both leases expired in May 2024 and were not extended beyond twelve months. As of June 30, 2024, the City’s receivable for lease payments and the deferred inflow of resources associated with leases are zero.

B. Irvine Company Ground Leases
Irvine Company Disposition and Development Agreement With Ground Lease (DDA) for Office Park Development
In April 2000, the former RDA entered into a Disposition and Development Agreement (DDA) with Ground Lease with The Irvine Company (Developer) for development of the site as an office/R&D complex. The DDA contemplated the former RDA obtaining title to the entire property from the City prior to entering into ground leases with the Developer. The site is subdivided into three parcels to accommodate the phased

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 4 – LEASE AGREEMENTS (continued)
76 development of the project. Only Parcel 2 was conveyed to the former RDA. Parcels 1 & 3 were always held by the City and not subject to terms of the subsequent RDA dissolution.

In March 2006, the DDA and the Ground Lease were amended to update the status of conditions precedent; amend the schedule of performance; and clarify terms and conditions relating to Parcel 1 and Parcel 3. In October 2012, the City entered into two ground leases with the Irvine Company for Parcels 1 and 3. The term of both leases is 80 years after the effective date of October 31, 2012, and therefore both leases shall expire on October 31, 2092. The rent commencement date is November 1, 2012. Under the terms of the leases the City will receive specified amounts for minimum rent subject to certain events or time periods and then inflationary adjustments at times specified in the leases. For the fiscal year ended June 30, 2024, the City recognized $1,313,233 in lease revenue and $2,106,631 in interest revenue for Parcel 1 and $633,168 in lease revenue and $1,015,700 in interest revenue for Parcel 3. As of June 30, 2024, the City’s receivable for lease payments for Parcel 1 was $91,882,951 and the balance of the deferred inflows of resources was $89,737,617. The City’s receivable for lease payments for Parcel 3 was $44,300,828 and the balance of the deferred inflows of resources was $43,266,468.

C. City Leases Pursuant to the Terms of the January 8, 2016 Settlement Agreement On March 8, 2011, the City and the former RDA adopted resolutions authorizing the execution of property conveyance agreements for the conveyance of certain real property owned by the former RDA. The agreements conveyed the properties subject to existing leases to the City. Properties included California’s Great America Theme Park, Techmart, Hyatt Regency, and Hilton Hotel.

The actions taken by the former RDA related to the asset transfers were validly authorized and conformed with the requirements of the Community Redevelopment Law as it existed at the time of the actions. Pursuant to ABx1 26, the Redevelopment Dissolution Law, the State Controller’s Office is to review any asset transfers that occurred between a redevelopment agency and any other public agency after January 1, 2011 and if the assets have not been contractually committed to a third party and to the extent allowed by state and federal law, the Controller, after completing its review is to order the return of the assets to the Successor Agency.

The Successor Agency received a Controller’s order on September 10, 2013 ordering the City to transfer the assets back to the Successor Agency. The validity of that order was the subject of litigation in Sacramento Superior Court (Sharma vs. City of Santa Clara). Additionally, on July 26, 2013, the Court granted the County of Santa Clara, the Santa Clara Unified School District, and the Santa Clara County Office of Education (Petitioners) motion for a preliminary injunction (temporary restraining order), restricting the City from selling, transferring, encumbering, spending, or otherwise depleting or wasting any real property interests received from the former RDA.

On January 8, 2016 the City executed a Settlement Agreement in Sharma vs the City of Santa Clara. This Settlement Agreement calls for the City to return to the Successor Agency certain properties that the former Redevelopment Agency transferred to the City prior to dissolution. The properties returned are as follows:

The Great America Theme Park Property, the Hilton Hotel Property, the North/South Parking Lots, the Gateway Parcel 2 Property, the Hyatt Hotel Property, The Techmart Property, and the Martinson Childcare Center Property. The Settlement Agreement requires the City to forego the long-term lease revenues generated by the properties. Lease revenues collected from July 1, 2012 to June 30, 2016 have been passed on to the Successor Agency. Additional information concerning the Settlement Agreement can be found in Note 22.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 4 – LEASE AGREEMENTS (continued)
77 The Settlement Agreement provides clarity that the City retains title to the main parking lot property for the Great America Theme Park and the Hyatt Hotel Ballroom Space. The agreement provides that rental income from these properties beginning July 1, 2015 is the property of the City.

California’s Great America Theme Park Parking Lot Lease The City and Cedar Fair entered into various agreements to operate and manage the theme park. As agreed in the Settlement Agreement, the Great America Theme Park Main Parking Lot is and always has been owned by the City and the City is entitled to any lease revenues generated from the Main Parking Lot after June 30, 2015. Pursuant to the Fourth Amendment of the ground lease, the City allows Cedar Fair to use certain City property adjacent to the Theme Park property for parking. Under the terms of the amended Ground Lease, Cedar Fair pays the City annually for use of such property for parking. For the fiscal year ended June 30, 2024, the City recognized $107,932 in lease revenue and $6,001 in interest revenue. As of June 30, 2024, the City’s receivable for lease payments was $473,257 and the balance of the deferred inflows of resources was $494,691.

Hyatt Ballroom Lease Agreement
In April 1985, the former RDA entered into various agreements for the development of a certain piece of land for the eventual operation of a high quality hotel and related facilities, including a ballroom. The resulting lease agreement pertaining to the City owned ballrooms for an initial term of 50 years. The Lessee has options to renew the lease for four additional periods of ten years each and one additional period of nine years. In 2013, Hyatt Equities, LLC. sold its interest to Inland American Lodging Acquisitions, Inc., the terms and conditions of the lease agreements remain in effect.

The minimum rent of the Ballroom lease is adjusted every three years according to the April 1985 agreement.

Due to the COVID-19 impacts, the City agreed to waive and abate the ballroom lease from March 1, 2020 to October 1, 2021. For the fiscal year ended June 30, 2024, the City recognized $327,695 in lease revenue and $88,691 in interest revenue. As of June 30, 2024, the City’s receivable for lease payments was $3,739,402 and the balance of the deferred inflows of resources was $3,550,031.

D. North South Parking Lot Lease
On May 22, 2018, the City Council authorized the City Manager to make an offer to purchase the Successor Agency owned North South Parcel and further authorized the execution of a Purchase and Sale Agreement for the property. The transfer of the property was settled on July 24, 2018. As part of the acquisition, the City accepted and assumed all of the duties, obligations, liabilities, commitments and covenants of Successor Agency accruing from and after the settlement date with respect to or arising under the lease with Cedar Fair.

For the fiscal year ended June 30, 2024, the City recognized $26,174 in lease revenue and $5,003 in interest revenue. As of June 30, 2024, the City’s receivable for lease payments was $436,607 and the balance of the deferred inflows of resources was $434,054.

E. Related Santa Clara Ground Lease
The City and Related Santa Clara, LLC, a Delaware limited liability company, entered into the certain Disposition and Development Agreement (City Place Santa Clara) on August 12, 2016. The duly adopted Development Agreement requires the City to convey the Property by lease in accordance with the DDA. In December 2022, the City entered into three ground leases with the Related Santa Clara for Phase 1-A, Phase

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 4 – LEASE AGREEMENTS (continued)
78 1-B, and Phase 1-C. The term of the three leases is 99 years after the effective date of January I, 2023. The rent commencement date was on December 20, 2022. Under the terms of the lease, the City will receive specified amounts for minimum rent subject to certain events or time periods and then inflationary adjustments at times specified in the leases. For the fiscal year ended June 30, 2024, the City recognized $432,590 in lease revenue and $1,871,363 in interest revenue for Phase 1-A, recognized $380,247 in lease revenue and $1,644,931 in interest revenue for Phase 1-B, recognized $173,693 in lease revenue and $751,388 in interest revenue for Phase 1-C. As of June 30, 2024, the City’s receivable for lease payments was $42,785,031 and the balance of the deferred inflows of resources was $42,163,552 for Phase 1-A, the lease receivable $37,608,110 and the balance of the deferred inflows of resources was $37,061,830 for Phase 1-B, the lease receivable $17,179,016 and the balance of the deferred inflows of resources was $16,929,480 for Phase 1-C.

F. Future Lease Payments
As of June 30, 2024, the City’s receivable for future lease payments to maturity for the leasing assets to other entities with the funds in which payments will be received are as follows:

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 4 – LEASE AGREEMENTS (continued)
79 For the Year
Ending June 30 Principal Interest Principal (1) Interest 2025 $ 1,635,317 $ 4,270,218 $ 325,595 $ 94,605
2026 1,693,898 4,257,475 342,725 86,924
2027 1,754,666 4,427,307 343,940 79,061
2028 1,808,507 4,428,058 356,180 71,459
2029 1,761,411 4,410,016 374,801 63,300
2030-2034 9,866,117 23,513,808 1,000,952 217,567
2035-2039 10,144,323 23,984,081 1,122,709 89,445
2040-2044 9,823,424 26,452,489 62,098 296
2045-2049 7,258,765 30,533,165 - -
2050-2054 7,757,603 33,158,032 - -
2055-2059 8,693,749 36,472,461 - -
2060-2064 9,737,690 40,419,958 - -
2065-2069 10,919,096 45,261,627 - -
2070-2074 12,236,867 50,225,267 - -
2075-2079 13,713,698 57,578,988 - -
2080-2084 15,366,846 64,433,349 - -
2085-2089 17,224,481 73,814,801 - -
2090-2094 12,623,086 84,281,008 - -
2095-2099 98,027,203 - - -
2100-2104 115,096,629 - - -
2105-2109 134,664,798 - - -
2110-2114 158,113,909 - - -
2115-2119 1,659,699 183,335,968 - -
2120-2124 95,912,457 5,382,069 - -
$ 251,591,700 $ 1,306,542,684 $ 3,929,000 $ 702,657
Governmental Activities Business-Type Activities
(1) Please refer to Santa Clara Stadium Authority 's separately issued Financial Statement Note 2k for the principal outstanding for Stadium Authority. (excluding Santa Clara
Stadium Authority)
NOTE 5 - ENTERPRISE FUND MANAGEMENT AGREEMENTS
A. Santa Clara Convention Center
During fiscal year 2018-19, the City performed a competitive bidding process to select a new management company for the Convention Center. On March 12, 2019, the City Council approved a resolution to enter into

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 5 – ENTERPRISE FUND MANAGEMENT AGREEMENTS (continued) 80 a new agreement with Global Spectrum, LP, doing business as Spectra Venue Management (Spectra), to manage and operate the Convention Center effective March 18, 2019. The initial term of this agreement began on March 18, 2019 and runs through June 30, 2024 with the option to extend the agreement for two subsequent terms of five (5) years by serving notice to Spectra no later than 180 days from the expiration of the term period. Under the terms of this agreement, Spectra will receive an annual base management fee for its’ operation of the Convention Center and an additional management fee if certain performance measures are met. For fiscal year ended June 30, 2024, the City paid Spectra $171,494 in management fees.

In May 2019, the City issued a request for proposal (RFP) to select a qualified company to provide Food and Beverage Operations for the Convention Center. The City entered into an agreement with Levy Premium Foodservice Limited Partnership (Levy) on November 1, 2019 to manage the foodservice operations at the Convention Center. The initial term of this agreement began on November 1, 2019 and expires on June 30, 2025. Upon expiration of the initial term, the City has the option to extend this agreement for two subsequent terms of five (5) years each by serving notice to Levy no later than 180 calendar days from expiration of term period. Under the terms of this agreement, Levy will receive management fees equal to 4.5% of gross receipts plus an additional fee of 8% of net receipts. For the fiscal year ended June 30. 2024, the City paid Levy $341,586 in fees.

In accordance with the November 1, 2019 executed agreement, Levy agreed to pay the City $5,750,000 consisting of $5,000,000 for an Operations Investment to be used for pre-opening expenses and other improvements to the foodservice facilities at the Convention Center, and a $750,000 Community Enrichment Investment to be spent on programs that drive community enrichment, develop local partnerships and promote economic development of the City. Both of these are amortized on a straight-line basis over 15 years. In the event that this agreement terminates for any reason prior to full amortization of the investment funds, the City is obligated to reimburse Levy for the unamortized amount.

NOTE 6 – SANTA CLARA STADIUM AUTHORITY
A. Credit Agreements
The Restated Credit Agreement dated as of June 19, 2013 was entered into by and among Stadium Funding Trust (FinanceCo), SCSA, and Goldman Sachs Bank. Under the Restated Credit Agreement, FinanceCo issued private placement notes and obtained a loan from a consortium of lenders and will loan SCSA up to $450 million and StadCo up to $400 million. Additionally, SCSA and Forty Niners SC Stadium Company LLC (StadCo) entered into the Restated StadCo Obligations Agreement on June 19, 2013 under which StadCo will loan up to $500 Million to SCSA to pay costs associated with the development of Levi’s Stadium.

B. Management Agreement
The Stadium Management Agreement dated as of March 28, 2012 was entered into by and among the SCSA, Forty Niners Stadium Management Company LLC (ManagementCo), and StadCo. The SCSA and StadCo selected ManagementCo to provide management services for the Stadium on each entity’s behalf on a continual, year-round basis, including overseeing the day-to-day operations and maintenance of the Stadium.

The Stadium Management Agreement has an initial term of 25 years, plus a 15-year renewal option.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 6 – SANTA CLARA STADIUM AUTHORITY (continued)
81 The Stadium Management Agreement also authorizes ManagementCo to pay for services related to the Stadium operations on behalf of the SCSA. For the year ended March 31, 2024, ManagementCo charged the SCSA $8.6 million in Shared Expenses, and $8.5 million in Other Operating and Management Expenses.

C. Ground Lease
On February 28, 2012, the SCSA entered into a lease (the Ground Lease) with the City whereby the City leases the Stadium site to the SCSA. The Ground Lease was amended on June 19, 2013.

The Ground Lease has an initial term of 40 years. The first lease year commenced on the first day following the substantial completion of construction (August 1, 2014) and ended on the next following March 31st. The subsequent lease years will start on April 1st and end on the following March 31st. The SCSA will have five successive extension options, each four years in duration, which would commence following the initial term expiration date.

The Ground Lease provides that the City will receive a fixed ground rent (Fixed Ground Rent) of $180 thousand for the first year of Stadium operations payable by the SCSA. Beginning in the second year of Stadium operations and annually thereafter through the tenth year of Stadium operations, the Fixed Ground Rent will increase annually by $35 thousand. Beginning in the 11th year of Stadium operations, Fixed Ground Rent will be increased to equal $1 million, and thereafter will be increased by $100 thousand every five years through the end of the initial term of the Ground Lease. If the term of the Ground Lease is extended, then, during the first extension term, the Fixed Ground Rent will equal $1.58 million; and if and to the extent the Ground Lease is further extended, the Fixed Ground Rent will be increased by $80 thousand every four years thereafter through the expiration of the term of the Ground Lease. The SCSA paid the City $495 thousand in ground rent in fiscal year ended March 31, 2024.

The Ground Lease also provides that the City will receive a performance-based rent equal to 50% of the net income from non-NFL events, less certain credits including 50% of the Fixed Ground Rent, payable by the SCSA. If certain of the credits are not used within the year incurred or the next five succeeding years, the credits will expire. The SCSA reported a net Non-NFL event profit of $8.8 million and $8.3 million for fiscal year ended March 31, 2023 and 2024, which triggers the performance-based rent. However, in the prior fiscal year the Stadium Authority did not pay the City any performance-based rent because there remained disputes and pending arbitration with StadCo as to potential credits that needed to be deducted from a performancebased rent amount due public safety costs in excess of a disputed threshold. The 2024 Settlement Agreement will resolve those disputes. The $7.3 million in performance-based rent due to the City for both fiscal years were accrued in fiscal year ended March 31, 2024. However, the payment to the City will not occur until the Final Effective Date of the 2024 Settlement Agreement. More details on the litigation are included in Note 20E.

The following schedule summarizes the minimum future payments due under this lease:

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 6 – SANTA CLARA STADIUM AUTHORITY (continued)
82 Fiscal Year Ground Lease
Ending March 31 Amount
2024 $ 1,000,000
2025 1,000,000
2026 1,000,000
2027 1,000,000
2028 1,000,000
Thereafter 32,500,000
Total $ 37,500,000
D. Stadium Lease
On March 28, 2012, the SCSA entered into a lease with StadCo whereby the SCSA leases the Stadium to StadCo. On June 19, 2013, the same parties entered into an Amended and Restated Stadium Lease Agreement (the Stadium Lease).

The Stadium Lease has an initial term of 40 years commencing on the first day following the substantial completion of construction (August 1, 2014) and includes five successive options to extend the term by four years each. The Stadium Lease is divided into two seasons:
 the Tenant Season, which includes the NFL season (including preseason, regular season and postseason NFL games) and runs from August 1 through January 31; and  the SCSA Season, which runs from February 1 through July 31.

Pursuant to the Stadium Lease, the SCSA and StadCo will be entitled to receive and collect separate revenues.

Initially, rent payable by StadCo to the SCSA was $24.5 million per year. This amount was established pursuant to the Stadium Lease in connection with the take-out financing, which occurred on June 19, 2013.

The Stadium Lease allowed for one opportunity to adjust the rent if operating or debt service expenses are either more or less than projected in determining the initial rent. Based on the changes to the projected operating and debt service expenses, the provisions for a one-time rent adjustment were triggered. At the SCSA Board (Board) meeting held on March 22, 2016, the Board decided not to adjust the rent, and instead passed a motion to pursue the informal dispute resolution procedures and to proceed to the arbitration process if necessary.

Thereafter, on May 3, 2016 StadCo filed for arbitration with the SCSA.

On June 18, 2018, the arbitrator entered an Arbitration Award in favor of the SCSA and against StadCo. This award adjusted the facility rent from $24.5 million to $24.76 million, an increase of $262 thousand. This increase is retroactive to the first lease year resulting in a total amount owed to the SCSA of $1.31 million for the first five lease years, through March 31, 2020. In addition to the adjustment to the facility rent, the SCSA was entitled to reimbursement of its legal fees, determined by the arbitrator to be $2.28 million. The lease also provides for a fair market rent adjustment in year 33.

The SCSA received $24.8 million in stadium rent from StadCo for the fiscal years ended March 31, 2024.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 6 – SANTA CLARA STADIUM AUTHORITY (continued)
83 The SCSA may elect to expand the Tenant Season to consist of the entire lease year, from April 1 through the next succeeding March 31 (Stadium Authority Put Right), by delivering written notice to StadCo. The SCSA Put Right may be exercised at any time during lease year 13, or at any time that the Management Company Revolving Loan balance exceeds $20 million. The expansion of the Tenant Season will be effective as of the applicable Tenant Season Expansion Date as set forth in the Stadium Lease. Effective from and after the Tenant Season Expansion Date, and continuing through the remainder of the Stadium Lease term, the Tenant Season will consist of the entire lease year. Refer to the Stadium Authority Financial Statements, Note 10.

E. Prior Year Correction
During the financial reporting process for March 31, 2024, the Stadium Authority reviewed the accounting and reporting for the GASB 87, Leases, implementation for the ground lease and the stadium lease as of April 1, 2022 and identified errors related to the accumulated deferred rent liability and interest expense and interest revenue calculations as of March 31, 2023. The Stadium Authority determined these to be immaterial corrections of prior year errors and has revised the March 31, 2023 applicable accounts. The beginning net position for fiscal year 2023-24 was increased by $8.7 million from $111.5 million to $120.3 million.

The statement of net position for fiscal year 2022-23 was adjusted as follows:

FY 2023
previously
reported
GASB 87
restatement
FY 2023
restated
Current assets:

Accounts receivable $ 18,994,260 $ 1,100,694 $ 20,094,954 Total change in assets $ 1,100,694
Current liabilities:

Accrued liabilities $ 1,852,581 $ (495,000) 1,357,581
Noncurrent liabilities:

Long-term accrued liabilities 7,149,723 (7,149,723) -
Total change in liabilities $ (7,644,723)
Net position:

Unrestricted deficit (412,098,738) 8,745,417 (403,353,321) Total changes in liabilities and
net position 1,100,694
The statement of revenues, expenses and changes in net position for fiscal year 2022-23 was adjusted as follows:

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 6 – SANTA CLARA STADIUM AUTHORITY (continued)
84 FY 2023
previously
reported
GASB 87
restatement
FY 2023
restated
Operating revenues:

Rents, royalties and licesing $ 38,532,268 $ (460,000) $ 38,072,268 Operating expenses:

Materials, services, and supplies 2,751,739 (979,044) 1,772,695 Total change in operating income 519,044
Nonoperating revenues (expenses):

Interest revenue 18,178,056 581,650 18,759,706
Total change in net position 1,100,694
Net position - beginning of period 80,721,961 7,644,723 88,366,684 Net position - end of period $ 111,520,156 8,745,417 120,265,573 F. Ground Lease Restatement
The SCSA implemented GASB 87, Leases, during the year ended March 31, 2023. The SCSA is a lessee for the Ground Lease with the City and is required to recognize the lease liability and intangible right-to-use lease asset in the statement of net position in its financial statements. For the year ended March 31, 2024, the SCSA recognized $29.3 million in lease liability, $27.1 million in intangible right-to-use lease asset and $774 thousand in interest payable in the statement of net position, and $495 thousand in leases expenses, $798 thousand in depreciation expense and $652 thousand in interest expense in the statements of revenues, expenses, and change in net position for the Ground Lease. The GASB 87 reporting requirement for the Ground Lease does not apply at the Citywide financial statements level. As a result, SCSA Enterprise Fund has been restated in the proprietary major fund statements. The right-to-use lease asset, lease liability and interest payable related to the Ground Lease were eliminated in statement of net position and the net impact in the unrestricted net position is $3.0 million. The related lease revenue, depreciation expense and interest expense were also eliminated in the statements of revenues, expenses, and change in net position and the net impact in net position is $955 thousand.

G. Subsequent Event
On May 23, 2024, the Stadium Authority, the City, StadCo, and ManagementCo entered into the 2024 Settlement Agreement that resolved pending arbitration and disputes regarding the complementary SBL buffet costs and NFL public safety cost arbitration, as well as other miscellaneous terms and matters. The 2024 Settlement Agreement includes amendments to the Ground Lease and Stadium Lease. Those lease amendments, which have already been signed and approved by Stadium Authority Board, City Council, StadCo, and ManagementCo, need to be approved by the NFL and the Lenders. Once the NFL and Lenders approve the lease amendments, the 2024 Settlement Agreement will have a Final Effective Date, and the settlement terms can be implemented. To date, the NFL has approved the lease amendments. As part of the settlement, the Stadium Authority agreed to recognize the $902 thousand complimentary SBL buffet expense for fiscal year 2021-22 and $14.7 million of NFL public safety costs over the threshold for fiscal years 2017- 18 through 2023-24. The settlement of the NFL public safety cost disputes will also allow for the payment of

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 6 – SANTA CLARA STADIUM AUTHORITY (continued)
85 the performance-based rent from the Stadium Authority to the City in the amount of $7.3 million for fiscal years 2022-23 and 2023-24 after the Final Effective Date of the 2024 Settlement Agreements.

NOTE 7 – CASH AND INVESTMENTS
A. Pooled Cash and Investments
The City pools cash from all sources and all funds except restricted cash and investments with fiscal agent.

Allocable portions of the pooled portfolio for each fund type are reported under the captions “Pooled cash and investments” and “Restricted Cash”. Interest income earned on pooled cash and investments is allocated to various funds based on average cash balances of each fund unless there are specific legal or contractual requirements to do otherwise.

Total cash and investments of the City was $1,383.3 million as of June 30, 2024. This amount includes the City’s pooled cash and cash investments of $1,335.6 million, and cash and investments with fiscal agents of $47.7 million.

Of the City's total cash and investments, the following shows the allocation as presented on the accompanying statements of net position:

Statement of Net Position
Pooled cash and investments 1,197,588,786 $
Investments with fiscal agent - current 32,555,629
Restricted cash 126,058,194
Deposits 9,449,807
Investments with fiscal agent - noncurrent 12,281,77 6
Fiduciary Funds
Pooled cash and investments 2,501,360
Investments with fiscal agent - current 2,902,022
Total Cash and Investments $ 1,383,337,574

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 7 – CASH AND INVESTMENTS (continued)
86 The City’s cash and investments balances in Governmental Funds, Enterprise Funds, Internal Service Funds, Private Purpose Trust, and Fiduciary Funds were as follows:

Governmental Enterprise
Internal
Service Fiduciary
Funds Funds Funds Funds Total
Pooled cash and
investments $ 787,298,523 358,495,510 $ 51,794,753 $ 2,501,360 $ 1,200,090,146 $ Investments with fiscal
agent - current 32,506,728 48,901 - - 32,555,629
Restricted cash 94,295,087 31,763,107 - - 126,058,194
Investments with fiscal
agent - noncurrent 11,562,642 719,134 - 2,902,022 15,183,798 Deposits 9,449,807 - - - 9,449,807
Total cash and
investments $ 935,112,787 391,026,652 $ 51,794,753 $ 5,403,382 $ 1,383,337,574 $ B. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment strategy is to invest cash not required for current obligations in U.S. government securities, federal government agency securities, highly rated money market instruments and other investments in accordance with the City’s investment policy for a maximum term of five years for the General Fund portfolio. The City Council has authorized the purchase of securities with maturities greater than five years, specifically for the Electric Cost Reduction Account. This strategy allows the City to minimize its exposure to credit, market, and liquidity risk while maintaining a reasonable return on its portfolio.

The City’s investment policy, in compliance with the City of Santa Clara Charter, Article IX, Section 904 (d) and (h), and the California Government Code authorizes the City to invest in securities that are consistent with the City’s cash management strategy and long-term goals and objectives. The City is authorized to invest in the following types of instruments, and the table also identifies certain provisions of the California Government Code, or the City’s investment policy where it is more restrictive:

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 7 – CASH AND INVESTMENTS (continued)
87 Authorized Investment Type
Maximum
Maturity
Minimum
Credit
Quality
Maximum
Percentage of
Portfolio
Maximum
Investment In One
Issuer
U.S. Treasury Obligations 7 years N/A 100% 100%
U.S. Agency Securities (A) 7 years Top three
ratings
categories
80%(B) 40%
Negotiable Certificates of Deposit 5 years A / A-1 30% 5% Bankers Acceptances 180 days N/A 25% 5%
Commercial Paper 270 days A / A-1 25% 5% (C)
California Local Agency Investment Fund N/A N/A None $75M Per A/C Repurchase Agreements 60 days N/A 50% 20%
Reverse Repurchase Agreements
(requires City Council approval)
92 days N/A 20% 10%
Municipal Obligations 7 years A 20% 5%
Medium Term Corporate Notes 5 years A/A- 25% 5%(C)
Mutual Funds / Money Market Funds N/A Top rating
category
20% 10%
Joint Powers Authority Investment Pools N/A N/A 100% 100% Supranational Obligations 5 years AA 20% 10%
Asset-Backed Securities 5 years AA 10% 5%
Non-Negotiable Certificates of Deposit 5 years N/A 10% 5% Mortgage-Backed Securities and Collateralized
Mortgage Obligations 6-12 years (D) AA 15% 5%
(A) Securities issued by the Federal Farm Credit Bank (FFCB), the Federal Home Loan Bank (FHLB), (B) Callable securities are limited to 30% of the portfolio.

Corporation (FHLMC), local agencies and other U.S. government -sponsored enterprises. the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage (D) Maximum Weighted Average Life with Current Public Securities Association Assumptions =12 years at time of purchase for Mortgage-Backed Securities (MBS) and 6 years at time of purchase for collateralized mortgage obligations (CMO). Maximum Final Maturity for MBS's and CMOs = 30 years with balloon payments.
(C) No more than 10% of the outstanding commercial paper and medium term coporate notes of any single issuer.

C. Investments with Fiscal Agents
The City invests bond proceeds restricted for construction in instruments that are stated in the Investment Policy and in various return-guaranteed investment agreements. These investments are invested in accordance

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 7 – CASH AND INVESTMENTS (continued)
88 with bond indentures and the maturities of each investment should not exceed the final maturity of each bond.

Bond proceeds investments are reported monthly to the City Council.

The City also maintains required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code 53601 (L) allows these funds to be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, other agreements, or certificates of participation in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance.

Electric Reserve Fund bond proceeds restricted for construction projects are invested and held by the trustee as fiscal agent investments. All funds have been invested as permitted under the Code. These investments are usually scheduled to mature when cash is needed to fulfill the requirements of the underlying bond and trust agreements.

The City also invests funds in the Bentzien Trust in accordance with the investment policy of the Trust that allows investment in cash and short-term investments (up to 20%), fixed income investments including U.S.

Government, U.S. Government Agency, Asset and Mortgage Backed securities, debt issued by U.S.

Corporations and fixed income mutual funds (30% to 60% of portfolio’s aggregate fair value), and equity securities or mutual funds (40% to 70% of portfolio’s aggregate fair value). Investments in U.S. Corporate debt shall be limited to an amount per issuer not to exceed 10% of the aggregate fair value of the portfolio, and upon initial purchase by the Adviser, must be of investment grade as rated by Moody’s and/or Standard and Poor’s rating services. The maximum maturity of an individual bond shall not exceed fifteen years and the average maturity shall not exceed ten years. Individual equity purchases shall have an equivalent securities rating of B- or better. Individual equity purchases shall not exceed five percent of the portfolio’s aggregate fair value.

D. Pension Rate Stabilization Program
In February 2017, the City Council approved a Pension Rate Stabilization Program, (PRSP) Trust administered by Public Agency Retirement Services (PARS). The PRSP is an irrevocable trust and qualifies as an Internal Revenue Section 115 trust. This trust will assist the City in mitigating the CalPERS contribution rate volatility.

Investments of funds held in Pension Rate Stabilization Program (PRSP) are governed by the Investment Guideline Document for the investment account and by the agreement for administrative services with the Public Agency Retirement Services (PARS), rather than the general provisions of the California Government code or the City’s investment policy. The City elected a discretionary investment approach which allows the City to maintain oversight of the investment management, control on target yield and the portfolio’ risk tolerance. The assets in this program will eventually be used to fund Pension Plan obligations.

E. Interest Rate, Credit Risks and Fair Value Measurement Interest rate risk is the risk that an investment’s value will be adversely affected by a change in interest rates.

In general, the longer the time to maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. To reduce interest rate risk, the City diversifies the portfolio into a wide range of investments with different maturities, and maintains a reasonable average maturity of less than three years.

This approach significantly mitigates adverse market volatility and maximizes returns.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 7 – CASH AND INVESTMENTS (continued)
89 The average maturity of the City’s pooled investment portfolio at June 30, 2024 was approximately 2.13 years and the City has the ability to and generally intends to hold all investments to maturity. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided in the investment table that shows the distribution of the City's investments by maturity.

Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.

Credit risk is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the actual rating as of June 30, 2024 for each investment type:

Credit Under 180 181 - 365 1 - 3 3 - 5 Over 5 Fair
Type of Investment Rating Days Days Years Years Years Value Cash N/A $ - 124,819,760 $ - $ - $ - $ 124,819,760 $
US Treasury Notes Aaa 14,942,542 17,541,803 161,806,789 293,388,379 - 487,679,513 Federal Farm Credit Bank Aaa 26,352,674 4,935,600 9,534,000 - - 40,822,274 Federal Home Loan Bank Aaa - 4,940,800 - - - 4,940,800
Federal National Mortgage Association Aaa 17,002,650 - 1,752,585 - - 18,755,235 Federal Home Loan Mortgage Corporation Aaa 4,884,950 - 13,820,277 4,223,733 - 22,928,960 Federal Home Loan Mortgage Corporation
Mortagage-Backed Securities Aaa - - 23,290,112 35,235,371 - 58,525,483 Corporate Notes Aaa 4,917,900 - 9,720,871 - - 14,638,771 Corporate Notes Aa 15,467,849 - 29,524,919 3,259,824 - 48,252,592 Corporate Notes A 31,768,585 - 49,614,792 48,872,169 - 130,255,546 Corporate Notes BBB+ (A) 2,502,118 - - - - 2,502,118
Asset-Backed Securities Aaa - - 11,958,835 51,598,372 - 63,557,207 Certificates of Deposit A & A+ - 7,269,709 7,574,175 - - 14,843,884 Money Market Funds (CAMP Pool) AAAm - 201,720,060 - - - 201,720,060 Money Market Funds (CAMP Term) AAAf - 40,000,000 - - - 40,000,000 Principal Public Deposit Sweep Program Not Rated - 211,384 - - - 211,384 State Investment Pool (LAIF) Not Rated - 5,934,524 - - - 5,934,524 Total Cash and Investments -
City Treasury 117,839,268 407,373,640 318,597,355 436,577,848 - 1,280,388,111 Cash (Debt Fund) N/A - 6,414,375 - - - 6,414,375
Cash (Pension Rate Stabilization Investment) N/A - 12,006 - - - 12,006 U.S. Treasury Notes
(Bentzien Trust) Aaa - 34,867 - 49,434 147,467 231,768
Federal Home Loan Bank
(Bentzien Trust) Aaa 49,030 - 69,597 98,140 137,907 354,674 Municipal Notes (Bentzien Trust) Aaa - - 73,207 - 74,436 147,643 Municipal Notes (Bentzien Trust) Aa - 49,925 36,252 31,893 69,497 187,567 Municipal Notes (Bentzien Trust) A - - 46,944 - - 46,944 Municipal Notes (Bentzien Trust) BBB - - 9,009 - - 9,009 Corporate Notes (Bentzien Trust) A - - - 58,726 - 58,726 Corporate Notes (Bentzien Trust) BBB 34,971 - 34,367 35,309 - 104,647 Corporate Stock (Bentzien Trust) A & B - 991,804 - - - 991,804 Corporate Stock (Bentzien Trust) C - 7,360 - - - 7,360
(continued)
Maturity
Cash and Investments - Other:

Cash and Investments - City Treasury:

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 7 – CASH AND INVESTMENTS (continued)
90 Credit Under 180 181 - 365 1 - 3 3 - 5 Over 5 Fair
Type of Investment Rating Days Days Years Years Years Value Mutual Fund - Dreyfus Money Market (Bond Proceeds) Aaam - 2,349,205 - - - 2,349,205 Mutual Fund - Blackrock Money Market (Debt Fund) Aaam - 768,035 - - - 768,035 Mutual Fund - JP Morgan Mutual Fund
(Debt Fund) Aaam - 10,182,510 - - - 10,182,510
Mutual Fund - Money Market Funds (Debt Fund) Aaam - 26,407 - - - 26,407 Mutual Fund - International
Equities (Bentzien Trust) Not Rated - 175,252 - - - 175,252 Mutual Fund - Fixed Income
(Bentzien Trust) Not Rated - 637,559 - - - 637,559
Mutual Fund - Equities
(Bentzien Trust) Not Rated - 158,612 - - - 158,612
Exchange Traded Funds
(Bentzien Trust) Not Rated - 27,345 - - - 27,345
Mutual Fund- Money Market
(Bentzien Trust) Not Rated - 337,527 - - - 337,527
Mutual Fund - Fidelity Treasury
(SCSA Debt Fund) Not Rated - 11,536,236 - - - 11,536,236 Morgan Stanley Institutional Liquidity
Treasury Securities (SCSA Debt Fund) Not Rated - 15,909,843 - - - 15,909,843 Pension Rate Stabilization Investment
(Cash Equivalents)) Not Rated - 1,764,531 - - - 1,764,531 Pension Rate Stabilization Investment
(Mutual Funds-Equity) Not Rated - 12,902,121 - - - 12,902,121 Pension Rate Stabilization Investment
(Mutual Funds-Fixed Income) Not Rated - 28,138,512 - - - 28,138,512 Real Estate Investment Trust (Bentzien Trust) B++ - 19,438 - - - 19,438 Collateral Obligations (ADM & CAISO) Not Rated (B)
- 9,449,807 - - - 9,449,807
49,030 101,928,248 269,376 273,502 429,307 102,949,463
Total Cash and Investments $ 117,888,298 509,301,888 $ 318,866,731 $ 436,851,350 $ 429,307 $ 1,383,337,574 $ Note:
(A) The investment in the corporate notes were rated A+ and in compliance with the City's investment policy when purchased. (B) Investments are not rated by S&P, but are rated by Moody's and Fitch, and have ratings in compliance with the City's investment policy.

Total Cash and Investments - Other
Maturity
Cash and Investments - Other: (continued)
The City accounts for investments in accordance with GAAP, which requires governmental entities to report certain investments at fair value based on quoted market information obtained from recognized sources. The City has reported its investments at fair value with the exception of its share of external investment pools and mutual funds, the carrying value of which approximates fair value. In determining the change in fair value of its investments, the City used an aggregate method of calculation.

The City categorizes its fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation input used to measure the fair value of asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 7 – CASH AND INVESTMENTS (continued)
91 Investments and
Derivative Instruments
Measured at Fair
Value
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable Inputs
6/30/2024 Level 1 Level 2 Exempt (1)
Investments by Fair Value Level
U.S. Treasury Notes $ 487,679,513 487,679,513 $ - $ - $ Federal Farm Credit Bank - 40,822,274 40,822,274 -
Federal Home Loan Bank - 4,940,800 4,940,800 -
Federal National Mortgage Association - 18,755,235 18,755,235 - Federal Home Loan Mortgage Corporation - 22,928,960 22,928,960 - Federal Home Loan Mortgage Corporation
Mortagage-Backed Securities - 58,525,483 58,525,483 -
Corporate notes - 195,649,027 195,649,027 -
Asset-Backed Securities - 63,557,207 63,557,207 -
Certificates of Deposit - 14,843,884 14,843,884 -
Money Market Funds (CAMP Pool) - 201,720,060 - 201,720,060 Money Market Funds (CAMP Term) - 40,000,000 - 40,000,000 Principal Public Deposit Sweep Program - 211,384 - 211,384 Total Short Term Investments 487,679,513 1,149,633,827 420,022,870 241,931,444 U.S. Treasury Notes (Bentzien Trust) 231,768 231,768 - - Federal Home Loan Bank (Bentzien Trust) - 354,674 354,674 - Municipal Notes (Bentzien Trust) - 147,643 147,643 -
Municipal Notes (Bentzien Trust) - 187,567 187,567 -
Municipal Notes (Bentzien Trust) - 46,944 46,944 -
Municipal Notes (Bentzien Trust) - 9,009 9,009 -
Corporate Notes (Bentzien Trust) - 58,726 58,726 -
Corporate Notes (Bentzien Trust) - 104,647 104,647 -
Mutual Fund - Dreyfus Money Market (Bond Proceeds) - 2,349,205 - 2,349,205 Mutual Fund - Blackrock Money Market (Debt Fund) - 768,035 - 768,035 Mutual Fund - JP Morgan Money Market Funds (Debt Fund) - 10,182,510 - 10,182,510 Mutual Fund - Money Market Funds (Debt Fund) - 26,407 - 26,407 (continued)
Fair Value Measurements Using
Short Term Investments
Debt Securities and Other

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 7 – CASH AND INVESTMENTS (continued)
92 Investments and
Derivative Instruments
Measured at Fair
Value
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable Inputs
6/30/2024 Level 1 Level 2 Exempt (1)
Mutual Fund - International Equities (Bentzien Trust) 175,252 175,252 - - Mutual Fund - Fixed Income (Bentzien Trust) - 637,559 637,559 - Mutual Fund - Equities (Bentzien Trust) - 158,612 158,612 - Mutual Fund- Money Market (Bentzien Trust) - 337,527 - 337,527 Mutual Fund - Fidelity Treasury (SCSA Debt Fund) - 11,536,236 - 11,536,236 Morgan Stanley Institutional Liquidity
Treasury Securities (SCSA Debt Fund) - 15,909,843 - 15,909,843 Pension Rate Stabilization Investment
(Cash and Equivalents) 1,764,531 1,764,531 - -
Pension Rate Stabilization Investment
(Mutual Funds-Equity) 12,902,121 12,902,121 - -
Pension Rate Stabilization Investment
(Mutual Funds-Fixed Income) 28,138,512 28,138,512 - -
Collateral Obligations (ADM & CAISO) - 9,449,807 - 9,449,807 Total Debt Securities and Other 43,212,184 95,477,135 1,705,381 50,559,570 Corporate Stock (Bentzien Trust) 991,804 991,804 - -
Corporate Stock (Bentzien Trust) 7,360 7,360 - -
Exchange Traded Funds (Bentzien Trust) 27,345 27,345 - - Real Estate Investment Trust (Bentzien Trust) 19,438 19,438 - - Total Equity Securities 1,045,947 1,045,947 - -
Total Investment by Fair Value Level 531,937,644 1,246,156,909 421,728,251 292,491,014 Investments Measured at fair value but not subject to fair value hierachy:

State Investment Pool (LAIF) - 5,934,524 - 5,934,524
Total Investments 531,937,644 1,252,091,433 $ 421,728,251 $ 298,425,538 $ Cash in Banks 131,246,141
Total Cash and Investments $ 1,383,337,574
Investments Derivative Instruments
Open contract power trading - Current Assets $ 673,783 673,783 Open contract power trading - Current Liabilities (7,708) (7,708) Open contract gas trading - Current Assets 6,446,180 6,446,180 Open contract gas trading - Non-current Assets 4,867,018 4,867,018 Total Investment Derivative Instruments $ 11,979,273 $ 11,979,273 (1) Accounts in exempt column are Mutual Fund-Money Market, Collateral Obligations, CAMP investments and Deposit Sweep Program which are exempt from the fair value hierarchy, or reported at amortized cost.

Equity Securities
Fair Value Measurements Using
Debt Securities and Other (continued)
The City utilizes a third party pricing service to determine fair market prices for its individually held investments. Evaluations are based on market information available at the time and generated using proprietary evaluated pricing models and methodologies.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 7 – CASH AND INVESTMENTS (continued)
93 Bentzien Trust investment in stocks and U.S. Treasuries are valued using prices quoted in active markets for those securities. All other Bentzien Trust debt securities are valued using a Market Approach methodology by Standard & Poor’s Securities Evaluation Inc. The Market Approach uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities or a group of assets and liabilities.

Level 1 investments are valued using a marketable actively traded assets closing price for identical assets.

Level 2 investments are determined by using quoted prices for similar assets.

F. Concentration of Credit Risk
None of the investments in the securities of any individual issuers is greater than 5% of total Citywide investments.

G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. Under California Government Code Section 53651, depending on specific types of eligible securities, a bank must deposit eligible securities posted as collateral with its Agent having a fair value of 105% to 150% of the City’s cash on deposit. All of the City’s deposits are either insured by the Federal Depository Insurance Corporation (FDIC) or collateralized with pledged securities held in the trust department of the financial institutions.

The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, the City will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The City’s Investment Policy limits its exposure to custodial credit risk by requiring that all security transactions entered into by the City, including collateral for repurchase agreements, be conducted on a delivery-versus-payment basis. Securities are to be held by a thirdparty custodian.

H. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City has no investments that are highly sensitive to interest rate fluctuations to a greater degree than already disclosed in the Interest Rate Risk Section above.

I. Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF). LAIF is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.

LAIF’s investment portfolio mainly consists of Treasuries, loans, Federal Agency securities, and collateralized mortgage obligations. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond proceeds accounts are subject to one time deposit with no cap and are set up with a monthly draw down schedule. The carrying value of LAIF approximates fair value.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 7 – CASH AND INVESTMENTS (continued)
94 J. California Asset Management Program
The City, as a CAMP shareholder, participates in both the CAMP Pool Portfolio and the CAMP Term Portfolio.

The CAMP Pool is fully liquid, stable net asset value (NAV) investment option with a competitive yield, while the CAMP Term is a fixed-rate, fixed term investment option that offers securities with maturities ranging from 60 days to one year. Investment principal and interest in the CAMP Term account are paid at maturity, with an automatic sweep into the CAMP Pool account. The CAMP Pool is managed to maintain a dollarweighted average portfolio maturity of 60 days or less and seeks to maintain a constant NAV per share of $1.00. The CAMP Pool invests in obligations of the United States Government and its agencies, high-quality, short-term debt obligations of U.S. companies and financial institutions. The CAMP Term investments are based on a pool of open-market securities similar to those in the CAMP Pool. The investments are matched to the amount invested and maturities selected by the Shareholder.

The City may withdraw all or any portion of the funds in the CAMP Pool account at any time by redeeming shares. The City may withdraw all or a portion of the funds in the CAMP Term account in $10,000 increments prior to maturity, but there is a premature redemption penalty.

The CAMP Declaration of Trust permits the CAMP trustee to suspend the right of withdrawal from CAMP or to postpone the date of payment of redemption proceeds if the New York Stock Exchange is closed other than for customary weekend and holiday closings, if trading on the New York Stock Exchange is restricted, or if, in the opinion of the CAMP trustees, an emergency exists such that disposal of the CAMP pool securities or determination of its net asset value is not reasonably practicable. If the right of withdrawal is suspended, the City may either withdraw its request for that withdrawal or receive payment based on the net asset value of the CAMP pool next determined after termination of the suspension of the right of withdrawal. At June 30, 2024, the fair value approximated the City’s cost. At June 30, 2024, the CAMP Pool investments had an average maturity of 38 days.

NOTE 8 – INTERFUND TRANSACTIONS AND BALANCES
A. Interfund Transfers
With Council approval, resources may be transferred from one City fund to another.

Transfers between funds during the fiscal year ended June 30, 2024 were as follows:

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 8 – INTERFUND TRANSACTIONS AND BALANCES (continued) 95 Fund Receiving Transfers Fund Making Transfers Amount General Fund Non-Major Governmental 2,069,172 $ A
Internal Service Funds 442,638 B
Electric Utility 349,749 C
Non-Major Governmental General Fund 16,597,660 D
Cemetery E 822
Sewer Utility 108,795 E
Solid Waste E 26,621
Water Utility 484,215 E
Electric Utility 1,363,648 E
Non-Major Governmental 12,304,080 F
Internal Service Funds General Fund 3,736,900 G
Electric Utility 1,172,505 H
Water Recycling Utility 9,140 I
Water Utility I 36,560
Cemetery General Fund 796,000 J
Electric Utility Water Utility 311,500 K
Non-Major Governmental 65,000 K
Sewer Utility Internal Service Funds 113,266 L
Solid Waste General Fund M 35,364
Water Utility Sewer Utility N 50,000
Water Recycling Utility 168,118 N
Santa Clara Open Space Authority General Fund O 16,500
Total Interfund Transfers $ 40,258,253

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 8 – INTERFUND TRANSACTIONS AND BALANCES (continued) 96 The reasons for material transfers are set forth below:
(A) Transfer Storm Drain Customer service Fee from Storm Drain Capital Improvement Fund to cover the storm drain maintenance and return of the savings from capital project and special revenue funds. (B) Return the savings from electric vehicle purchase in the Automotive Service fund and CIP Management Service Fee fund.
(C) Transfer to general fund for the positions to support Electric Utility operation. (D) Transfer to fund various capital projects, maintenance district and to pay the debt. (E) Transfer to fund their respective share of financial, human resources software, utility billing, and other projects.
(F) Transfer from Special Revenue fund to fund various street related and affordable housing related projects.
(G) Transfer to acquire Citywide communication equipments and the replacement of ambulances for Fire department.
(H) Transfer from electric Greenhouse Gas program to fund the vehicle revolving fund on the electric vehicle purchases.
(I) Transfer to Automotive Services for replacement of utility crew trucks. (J) Transfer to Cemetery fund to subsidize the cemetery operation. (K) Transfer fund to the Electric Utility fiber project for the utility yard building and water ground improvement project.
(L) Returning the savings from CIP Management Service Fee fund to the original funding source. (M) Transfer to Solid Waste to subsidize the rate assistance program. (N) Transfer to update the City's Water Supply Master Plan. (O) Transfer to Santa Clara Open Space Authority for the annual audit expenditures.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 8 – INTERFUND TRANSACTIONS AND BALANCES (continued) 97 B. Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. The following is a summary of interfund balances as of June 30, 2024.

Receivable Fund Payable Fund Amount
General Fund Santa Clara Stadium Authority 223,091 $
Receivable by Governmental Funds 223,091
Electric Utility Internal Service Funds 4,017,195
Water Utility Internal Service Funds 1,621,839
Sewer Utility Internal Service Funds 1,126,387
Cemetery Internal Service Funds 265,923
Receivable by Enterprise Funds 7,031,344
41,213
Internal Service Funds Internal Service Funds 41,213
Receivable by Internal Service Funds 41,213
Total $ 7,295,648
Note: The City uses due to/due from as a balancing mechanism in funds with negative cash balances.

C. Internal Balances
Internal balances represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental, successor agency and business-type activities. The negative $250,038 net internal balance in the Statement of Net Position is due to the different fiscal year end dates between the City and the Santa Clara Stadium Authority (refer to Note 1D for more information).

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
98 NOTE 9 – CAPITAL ASSETS A. Capital Assets Summary Capital Assets at June 30, 2024 are comprised of:

Balance Retirements/ Balance
June 30, 2023 Additions Adjustments Transfers June 30, 2024 Governmental Activities
Non Depreciable Assets:

Land $ 5,400,270 124,518,835 $ $ - $ - $ 129,919,105
Construction in progress 39,004,798 28,612,245 - (8,979,387) 58,637,656 - - Total Non Depreciable Assets 163,523,633 34,012,515 - (8,979,387) 188,556,761 Capital assets being depreciated:

Land improvements - 60,216,892 - 222,929 60,439,821
Buildings - 217,442,023 - - 217,442,023
Infrastructure 4,060,170 633,178,793 - 8,577,639 645,816,602 Machinery & equipment 87,265,574 4,091,704 (1,868,353) 178,819 89,667,744 Right-to-use leased equipment 676,479 - - - 676,479
Right-to-use subscription based IT arrangement 10,59 2,078,197 8,994 - - 12,677,191 - - Total Capital assets being depreciated 1,009,378,755 10,230,071 (1,868,353) 8,979,387 1,026,719,860 Less accumulated depreciation for:

Land improvements (2,694,466) (21,162,146) - - (23,856,612) Buildings (4,234,694) (82,478,453) - - (86,713,147)
Infrastructure (14,982,507) (345,369,268) - - (360,351,775) Machinery & equipment (69,701,701) (3,471,490) 1,835,455 - (71,337,736) Right-to-use leased equipment (424,872) (212,435) - - (637,307) Right-to-use subscription based IT arrangement (1,65 (1,788,393) 2,970) - - (3,441,363) - - Total accumulated depreciation (520,789,410) (27,383,985) 1,835,455 - (546,337,940) - - Net Depreciable Assets (17,153,914) 488,589,345 (32,898) 8,979,387 480,381,920 - - Governmental Activity Net Capital Assets 652,112,978 $ 16,858,601 $ (32,898) $ - $ 668,938,681 $

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
99 NOTE 9 – CAPITAL ASSETS (continued)
Balance Retirements/ Balance
June 30, 2023 Additions Adjustments Transfers June 30, 2024 Business-Type ActivitiesNon Depreciable Assets:

Land $ 18,851,211 $ - $ - $ - $ 18,851,211
Construction in progress 74,309,714 77,772,913 (4,922,358) (54,518,606) 92,641,663 Total Non Depreciable Assets 93,160,925 77,772,913 (4,922,358) (54,518,606) 111,492,874 Capital Assets being depreciated:

Land Improvements - 102,407 - - 102,407
Buildings 3,963,548 918,503,578 - - 922,467,126
Infrastructure - 1,262,015,271 - 54,518,606 1,316,533,877 Machinery & equipment 28,405,915 1,643,239 (192,786) - 29,856,368 Right-to-use leased equipment 2,916,623 - - - 2,916,623 Right-to-use Subscription based IT arrangement 3,108 729,014 ,024 - - 3,837,038 - - Total Capital Assets being depreciated 2,215,051,818 6,335,801 (192,786) 54,518,606 2,275,713,439 Less accumulated depreciation for:

Land Improvements (2,571) (82,267) - - (84,838)
Buildings & improvements (212,257,184) (18,203,742) - - (230,460,926) Infrastructure (29,686,319) (603,912,806) - - (633,599,125) Machinery & equipment (20,462,344) (1,769,467) 192,786 - (22,039,025) Right-to-use leased equipment (1,346,134) (673,066) - - (2,019,200) Right-to-use Subscription based IT arrangement (378, (485,566) 485) - - (864,051) Total accumulated depreciation (838,439,220) (50,820,731) 192,786 - (889,067,165) Net Depreciable Assets 1,376,612,598 (44,484,930) - 54,518,606 1,386,646,274 Enterprise Activity Net Capital Assets 1,469,773,523 $ 33,287,983 $ (4,922,358) $ - $ 1,498,139,148 $

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
100
NOTE 9 – CAPITAL ASSETS (continued)
B. Construction in Progress Summary
Construction in Progress for governmental activities as of June 30, 2024 consisted of the following projects:

Future
Governmental Projects Authorized Expended Commitments
Transportation Improvements 59,082,010 $ 25,447,373 $ 33,634,637 $ Parks and Recreation Improvements 27,863,854 19,797,751 8,066,103 City Building Improvements 23,996,321 13,392,532 10,603,789 Total $ 110,942,185 $ 58,637,656 $ 52,304,529
Construction in Progress for business-type activities as of June 30, 2024 consisted of the following:

Future
Enterprise Fund Projects Authorized Expended Commitments Electric Projects 258,682,442 $ 86,463,324 $ 172,219,118 $ Water and Sewer Projects 6,972,068 532,368 6,439,700
Stadium Authority Projects 18,963,984 4,202,330 14,761,654 Santa Clara Convention Center Projects 3,166,791 1,443,641 1,723,150 Total 287,785,285 $ 92,641,663 $ 195,143,622 $
Details of these projects are available from the City on request.

C. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets including the right-to-use leased assets. The amounts allocated to each function or program are as follows:

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 9- CAPITAL ASSETS (continued)
101
Governmental Activities:

General Administration $ 2,315,688
Finance 4,587
Public Works 15,531,219
Parks and Recreation 3,385,410
Public Safety
Police 997,425
Fire 516,172
Planning and Inspection 4,316
Library 1,441,968
24,196,785
Capital assets held by the City's Internal Service
Funds are charged to the various functions
based on their usage of the assets 3,187,200
Total Governmental Activities $ 27,383,985
Business-Type Activities:

Utility Funds:

Electric Utility $ 28,480,948
Water Utility 1,927,329
Sewer Utility 1,382,392
Water Recycling Utility 25,141
Solid Waste 4,308
Cemetery 6,287
Santa Clara Convention Center 1,556,039
Santa Clara Stadium Authority 17,438,287
Total Business-Type Activities $ 50,820,731

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
102
102
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS
A. Summary of Long-Term Obligations
Issue Date Final Maturity Interest rate
Governmental Activity Debt:

General Long-Term Debt:

General obligation bonds
2013 Refunding Certificates of Participation 3/28/2013 2/1/2032 2%-3.75% Unamortized Premium/Discount
Subtotal Government Activity Debt
Business-Type Activity Debt:

Electric Utility:
2018 Series A Revenue Bonds 12/18/2018 7/1/2027 5.00%
Unamortized Premium/Discount
Santa Clara Stadium Authority (2):

Term A loan 6/19/2013 4/1/2039 5.00%
Subtotal Business Activity Debt-Bonds and Loan
Direct borrowing:

Electric Utility:
2020-1 Series Revenue Bonds 4/10/2020 7/1/2032 1.36%
2020-2 Series Revenue Bonds 4/10/2020 7/1/2028 1.02%
2020-3 Series Revenue Bonds 4/10/2020 7/1/2024 0.58%
Sewer Utility:
2016 Trimble Road Loan 3/8/2016 2/1/2031 2.14%
2020 Sewer Installment Sale Agreement 6/11/2020 7/1/2024 Variable 2023 Wastewater Revenue Certificates of Participation 10/3/2023 2/1/2049 4.25%-5% Unamortized Premium/Discount
Santa Clara Stadium Authority(2)
:

StadCo CFD Advance(1) 4/1/2013 12/31/2054 5.73%
Subtotal Business Activity Debt from Direct Borrowing
Subtotal Enterprise Activity Debt
Total Long-Term Debt Obligations
(2) Stadium Authority's long-term obligations are based on a March 31 fiscal year end. (see Note 1D) Type of Indebtedness
(1) Payments are made as the Mello-Roos tax is collected and transmitted to the Community Facilities District (CFD) by the hotels in the District.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 103
Authorized
Outstanding as of
June 30, 2023
Additions,
Transfers, and
Amort. of
Discounts
Debt Retired /
Defeased
Outstanding as
of June 30, 2024
Current
Portion
$ 10,085,000 18,540,000 $ - $ 1,030,000 $ 9,055,000 $ 1,085,000 $ (54,297) 475,097 - 420,800 -
10,560,097 18,540,000 (54,297) 1,030,000 9,475,800 1,085,000 30,215,000 48,800,000 - 5,440,000 24,775,000 5,795,000
(753,233) 3,012,932 - 2,259,699 -
215,415,240 282,794,108 - 15,459,000 199,956,240 7,299,896 248,643,172 331,594,108 (753,233) 20,899,000 226,990,939 13,094,896 52,985,000 52,985,000 - - 52,985,000 -
34,315,000 34,315,000 - 5,755,000 28,560,000 5,695,000
7,915,000 16,720,000 - 3,945,000 3,970,000 3,970,000
6,859,162 12,000,000 - 794,893 6,064,269 811,995
20,000,000 50,000,000 - 20,000,000 - -
- 34,585,000 34,585,000 - 34,585,000 735,000
- 1,390,789 1,367,609 - 1,367,609 -
29,859,497 38,000,000 1,147,911 28,711,586 -
151,933,659 239,995,789 35,952,609 31,642,804 156,243,464 11,211,995 400,576,831 571,589,897 35,199,376 52,541,804 383,234,403 24,306,891 $ 411,136,928 590,129,897 $ 35,145,079 $ 53,571,804 $ 392,710,203 $ 25,391,891 $

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 104
B. City’s Long-term Obligations
2013 Central Park Library Refunding Certificates of Participation (2013 COPs) On March 28, 2013, the PFFC issued $18.54 million to provide funds to refund outstanding 2002A COPs. The 2013 COPs mature annually beginning February 1, 2014 through February 1, 2032 and bear coupon rates ranging from 2% to 3.75%. Debt Service is secured by lease payments to be made by the City to the PFFC for use of the library. The PFFC assigns the lease payments to the certificate owners.

In the event of default there is no remedy of acceleration of the total lease payments nor the maturities of the Certificates. The City will be liable only for the lease payments on an annual basis, and in the event of default, the trustee would be required to seek a separate judgement each year for that year’s defaulted lease payments.

Compliance
Various debt agreements governing the City’s bonds contain a number of covenants, including continuing disclosure requirements. The City is in compliance with these specific covenants and all other material covenants governing the particular bond issues. No event of default, as defined in the bond indentures, has occurred or is occurring.

Various debt agreements governing the Enterprise Funds’ revenue bonds contain a number of covenants, including those that require the City to maintain and preserve the respective enterprise in good repair and working order, to maintain certain levels of insurance and to fix and collect rates, fees and charges so as to maintain certain debt coverage ratios. The City is in compliance with these specific covenants and all other material covenants governing the particular revenue bond issues. No event of default as defined in the bond indentures has occurred or is occurring.

C. Enterprise Funds
Electric Utility
Electric Revenue Refunding Bonds, Series 2018A
On December 18, 2018, SVP issued $48.8 million of Electric Revenue Refunding Bonds, Series 2018A (Electric 2018A Bonds) to refinance $54.58 million outstanding principal amount of Variable Rate Demand Electric Revenue Refunding Bonds, Series 2008B and terminate a related swap agreement. The Electric 2018A Bonds bear 5% coupon rate, mature annually beginning on July 1, 2019 through July 1, 2027, and were sold at an All-In True Interest Cost of 2.32%. Debt service on the Electric 2018A Bonds is secured by a pledge of net revenues of SVP.

In the event of default, the City will transfer to the trustee all adjusted net revenues held by it and received thereafter and the Trustee will disburse all adjusted net revenues and any other funds then held or thereafter received by the trustee under the provisions of indenture. In the case of default, the trustee will be entitled to declare the bond obligation of all bonds then outstanding to be due and payable immediately.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 105
Subordinate Electric Revenue Refunding Bonds, Series 2020-1 The City Council determined that it was in the best interests of the City to enter into a credit facility with a bank for the purpose of refunding all of the outstanding Electric 2011A Bonds; and for the indebtedness created under such credit facility to be evidenced by a subordinate electric revenue bond to be issued by the City and delivered to the Bank as authorized by Resolution No. 20-8834 adopted by the City Council on April 7, 2020.

On April 10, 2020, the City entered into a loan agreement with Bank of America, N.A., (the “Loan Agreement”) and issued $52.985 million of Subordinate Electric Revenue Refunding Bonds, Series 2020-1 (Electric 2020-1 Bonds) to refinance $54.830 million outstanding principal amount of Electric Series 2011A Bonds under a Taxable to Tax-Exempt Conversion structure. The Electric 2020-1 Bonds were originally issued as taxable bonds with coupon rates of 1.74% and were converted to a tax-exempt rate of 1.36% per annum effective April 2, 2021. The Electric 2020-1 Bonds mature annually beginning on July 1, 2028 through July 1, 2032 and were sold at a true interest cost of 1.43% with an average coupon rate of 1.40%. Debt service on the Electric 2020-1 Bonds is secured by a pledge of Available Electric Revenues of SVP on a basis subordinate to outstanding Senior Electric Revenue Bonds, if any.

Subordinate Electric Revenue Refunding Bonds, Series 2020-2 The City Council determined that it was in the best interests of the City to enter into a credit facility with a bank for the purpose of refunding a portion of the outstanding Electric 2013A Bonds; and for the indebtedness created under such credit facility to be evidenced by a subordinate electric revenue bond to be issued by the City and delivered to the Bank as authorized by Resolution No. 20-8834 adopted by the City Council on April 7, 2020.

On April 10, 2020, the City entered into a loan agreement with Bank of America, N.A. and issued $34.315 million of Subordinate Electric Revenue Refunding Bonds, Series 2020-2 (Electric 2020-2 Bonds) to refinance $30.725 million of the callable portion of the outstanding Electric Revenue Refunding Bonds, Series 2013 A.

The Electric 2020-2 Bonds bear 1.31% coupon rates, mature annually beginning on July 1, 2023 through July 1, 2028, and were sold at a true interest cost of 1.21% with an average coupon rate of 1.15%. Electric 2020-2 Bonds were priced at taxable rates and were converted to tax-exempt basis on December 28, 2022, which now bear 1.02% coupon rates. Debt service on the Electric 2020-2 Bonds is secured by a pledge of Available Electric Revenues of SVP on a basis subordinate to outstanding Senior Electric Revenue Bonds, if any.

Subordinate Electric Revenue Refunding Bonds, Series 2020-3 The City Council determined that it was in the best interests of the City to enter into a credit facility with a bank for the purpose of refunding of the outstanding Electric Series 2014; and for the indebtedness created under such credit facility to be evidenced by a subordinate electric revenue bond to be issued by the City and delivered to the Bank as authorized by Resolution No. 20-8834 adopted by the City Council on April 7, 2020.

On April 10, 2020, the City issued $16.720 million of Subordinate Electric Revenue Refunding Bonds, Series 2020-3 (Electric 2020-3 Bonds) to refinance $19.413 million outstanding principal amount of Subordinated Electric Revenue Bonds, Series 2014. The Electric 2020-3 Bonds bear 0.58% coupon rates, mature annually beginning on July 1, 2020 through July 1, 2024, and were sold at a true interest cost of 0.70%. Debt service on the Electric 2020-3 Bonds is secured by a pledge of Available Electric Revenues of SVP on a basis subordinate to outstanding Senior Electric Revenue Bonds, if any.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 106
In the event of default under the loan agreement for the 2020-1 bonds, 2020-2 bonds or 2020-3 bonds (including a failure by the City to pay principal or interest on the related bonds, a failure by the City to perform or observe its covenants, a default in other specified indebtedness or obligations of the City, certain acts of bankruptcy or insolvency, or other specified events of default), the Bank has the right, upon written notice to the City, to accelerate and declare the City’s obligation to repay the related bonds and all other obligations of the City to the Bank under such loan agreement to be immediately due and payable.

Pledges of Future Electric Revenues
The pledge of future Electric Fund revenues ends upon repayment of all outstanding principal on bonds and loans, which is scheduled to occur in fiscal year 2032-33. For fiscal year 2023-24, Electric Fund revenues, including operating revenues and non-operating interest earnings, amounted to $635.0 million and operating costs including operating expenses, but not interest, depreciation or amortization whole amounted to $518.5 million. Net revenues available for debt service amounted to $116.5 million which represented a coverage ratio of 6.69 on the $17.4 million of debt service.

Subsequent Event
On October 23, 2024, City issued $112,175,000 of Electric Revenue Bonds, Series 2024 A (Electric 2024A Bonds) to provide funding for several of its capital projects in the System Expansion Plan. These projects include Kifer Receiving Station (KRS) rebuild, Scott Receiving Station (SRS) rebuild, and Northern Receiving Station (NRS) upgrades and expansion. The Electric 2024A Bonds mature annually beginning on July 1, 2025 through July 1, 2044 and bear a coupon rate of 5%, with optional redemption for bonds with maturities after July 1, 2035. Debt service on the Electric 2024A Bonds is secured by a pledge of net revenues of SVP.

Sewer Utility
Installment Sale Agreement, Series 2016
On March 8, 2016, the City entered into an Installment Sale Agreement with the PFFC in order to provide funds for the Trimble Road Trunk Sanitary Sewer Improvement Project (the “Project”). The PFFC entered into a separate Assignment Agreement with the DNT Asset Trust, a wholly owned subsidiary of JP Morgan Chase National Association (the “Agreement”), to assign its rights under the Installment Sale Agreement to DNT Asset Trust. The Agreement, in the amount of $12,000,000, carries an interest rate of 2.14% and the final payment is due February 1, 2031. Installment payments on the Agreement are secured by a pledge of net revenues of the Wastewater System.

In the event of default there is no remedy of acceleration of the total installment payments. The City will be liable only for the installment payments as they become due during the terms of the agreement. There are no significant finance-related consequences for termination.

Installment Sale Agreement, Series 2020
On June 11, 2020, the City entered into an Installment Sale Agreement (the “ISA”) with the PFFC to provide funds for the San Jose/Santa Clara Regional Wastewater Facility Project (the “Project”). The PFFC entered into a separate Assignment Agreement with JPMorgan Chase Bank, N.A. (the “Assignment Agreement”), to assign its rights under the ISA to JPMorgan Chase Bank, N.A. The ISA in the amount of $50,000,000 carries a variable rate of interest equal to 80% of 1-month LIBOR (reset daily), plus .95% per annum. The City may

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 107
draw on the Installment Sale Agreement as necessary with an initial $20,000,000 drawn on the date of closing.

Interest is due each January 1 and July 1, commencing January 1, 2021. Principal on outstanding advances was due on or before July 1, 2024. In addition, the PFFC shall pay an undrawn fee on any amount not yet drawn at a rate of .325% per annum on each interest payment date. Installment payments on the Agreement are secured by a pledge of net revenues of the Wastewater System on a subordinate basis to the Trimble Road Installment Payments.

In March 2020, the Governmental Accounting Standards Board (GASB) issued Statement No. 93, Replacement of Interbank Offered Rates. The objective of this statement is to address accounting and financial reporting implication that results from the replacement of an IBOR. The City amended the ISA with JPMorgan Chase Bank, N.A. which replaced LIBOR with SOFR (Secured Overnight Financing Rate administered by the New York Federal Reserve Bank) as the benchmark. Effective April 2023, interest expense for the drawn amount is calculated using a variable rate of interest equal to 80% of 1-month adjusted SOFR (SOFR plus adjustment of .10% per annum) plus .95% per annum. The City fully refunded this loan in October 2023 with proceeds from the Wastewater Revenue Certificates of Participation, Series 2023.

Wastewater Revenue Certificates of Participation, Series 2023 On October 24, 2023, the PFFC issued $34.59 million of Wastewater Revenue Certificates of Participation (2023 Wastewater COPs) to refund $20.0 million outstanding Series 2020 ISA and fund an additional $15.0 million of improvements for the San Jose/Santa Clara Regional Wastewater Facility Project (Project). The 2023 Wastewater COPs mature annually beginning February 1, 2025, through February 1, 2049 and bear coupon rates ranging from 4.25% to 5.00%. Debt Service is secured by a pledge of net revenues of the Wastewater System in installment payments to be made by the City to the PFFC for use of the Project. The PFFC assigns the lease payments to the certificate owners. This new issuance is on a parity with the obligations of the Series 2016 Trimble Road ISA.

Pledges of Future Sewer Revenues
The pledge of future Sewer Fund revenues ends upon repayment of all outstanding principal on bonds and loans, which is scheduled to occur in fiscal year 2048-49. For fiscal year 2023-24, Sewer Fund revenues, including operating revenues and non-operating interest earnings, amounted to $50.0 million and operating costs including operating expenses, but not interest, depreciation or amortization whole amounted to $32.1 million. Net revenues available for debt service amounted to $17.9 million which represented a coverage ratio of 9.9 on the $1.8 million of debt service.

Santa Clara Stadium Authority
Stadium Funding Trust Loan
The Restated Credit Agreement by and among FinanceCo, the SCSA and Goldman Sachs Bank was entered into on June 19, 2013. FinanceCo agreed to loan the SCSA up to $450 million. Under the Restated Credit Agreement, the loan from FinanceCo consists of the Term A Loan and the Term B Loan. On March 31, 2016, the SCSA paid the remaining amount due on the Term B Loan.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 108
Term A Loan
The Term A Loan was made in the amount of $282.79 million. This loan bears interest at a fixed rate of 5.00%, payable semi-annually, with annual principal payments due beginning in April 2018. The Term A Loan has a maturity date of April 1, 2039 and is subject to certain prepayment premiums. The loan was fully drawn at closing. As of March 31, 2024, $200.0 million was outstanding. Debt service on this loan is secured by a pledge of available SBL revenues of SCSA.

In the event of default under the loan agreement, FinanceCo has the right, upon written notice to the SCSA, to accelerate and declare the SCSA’s obligation to repay the related loan to FinanceCo to be immediately due and payable.

StadCo CFD Advance
In May of 2010, the City of Santa Clara completed the proceedings to establish a Community Facilities District (CFD) for the purpose of financing certain publicly owned facilities and public services associated with Levi’s Stadium.

On June 11, 2013, the CFD, the SCSA, and StadCo entered into a Reimbursement Agreement under which the CFD would agree to reimburse the SCSA for costs of certain publicly owned facilities and public services constructed for Levi’s Stadium. The reimbursement can only be made from a special tax generated by the CFD, as and when received by the CFD.

StadCo has agreed to advance to the SCSA funds to pay for the CFD Infrastructure (StadCo CFD Advance).

To evidence the SCSA’s obligation to repay the StadCo CFD Advance, the SCSA and StadCo also executed a note on June 11, 2013. The StadCo CFD Advance has a maximum principal of $38 million and an interest rate of 5.73%.

During the year ended March 31, 2024, as the special CFD tax was submitted to the SCSA, a number of payments were made on the StadCo CFD Advance. These payments were made mid-way through each quarter.

The interest that accrued between the last StadCo CFD Advance payment and the end of the year is added to principal. These payments totaled $1.7 million in interest and $1.2 million in principal. As of March 31, 2024, $28.7 million was outstanding.

StadCo Subordinated Loan
The Restated StadCo Obligations Agreement dated as of June 19, 2013 was entered into by and between StadCo and the Stadium Authority as part of the take out financing process. Under the Restated StadCo Obligations Agreement, StadCo will loan the Stadium Authority an amount not to exceed $500 million with a fixed 5.50% interest rate. Required principal repayments started in March 2016 and the Stadium Authority may prepay the loan at any time. Debt service on this loan is secured by a pledge of available Stadium Authority revenues on a basis subordinate to outstanding senior loans, if any. As of March 31, 2024, there was no balance outstanding.

In the event of default under the loan agreement, StadCo has the right, upon written notice to the Stadium Authority, to accelerate and declare the Stadium Authority’s obligation to repay the related loan to StadCo to be immediately due and payable.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 109
Management Company Revolving Loan
The Management Company Revolving Loan dated as of March 28, 2012 was entered into by and between the Stadium Authority and ManagementCo. The Management Company Revolving Loan provides borrowing to the Stadium Authority in an amount not to exceed $25 million through the earlier of the end of the term of the Stadium Lease or the expiration of the Stadium Management Agreement, with interest at the prime rate payable quarterly. The Management Company Revolving Loan may be used solely for the purpose of enabling the Stadium Authority to pay Covered Stadium Authority Operating Expenses (as defined in the agreement) to the extent, and only to the extent, that funds are not otherwise available. As of March 31, 2024, there was no balance outstanding.

Pledges of Future Stadium Revenues
The pledges of future revenues ends upon repayment of the $200.0 million in outstanding principal on the Term A which is scheduled to occur in fiscal year 2039-40. For fiscal year 2023-24, revenues including operating revenues and nonoperating interest earnings amounted to $99.9 million and operating costs including operating expenses, but not interest, depreciation, or amortization amounted to $61.4 million. Net revenues available for debt service amounted to $38.5 million, which represented a coverage ratio of 5.27 on the $7.3 million of debt service.

D. Derivative Instruments
Under hedge accounting, the increase (decrease) in the fair value of a hedge is reported as a deferred cash flow hedge on the statement of net position. For the reporting period, all of SVP’s derivatives meet the hedge effectiveness tests defined by GAAP.

Notional Amounts and Fair Values- SVP Future Derivative Instruments SVP maintains a Market Risk Management Policy, which among other things, sets forth the guidelines for the purchase and sale of certain financial instruments defined as hedge instruments in support of market power purchase and sales transactions. The primary goal of these guidelines is to provide a framework for the operation of an energy price hedging program to better manage SVP’s risk exposure in order to stabilize pricing and hedges costs for the benefit of SVP and its customers.

Consistent with hedge accounting treatment meeting effectiveness tests, changes in fair value are reported as deferred flows of resources on the statement of net position until the contract expiration that occurs in conjunction with the hedged expected energy purchase/sales transaction. When hedging contracts expire, at the time the purchase/sales transactions occur, the deferred balance is recorded as a component of Purchased Power. For energy derivatives, fair values are estimated by comparing contract prices to forward market prices quoted by third party market participants.

SVP had the following future derivative instruments outstanding at June 30, 2024 with Archer Daniels Midland Company to hedge cash flows on sales of excess resources in CAISO market in June and purchase of power from CAISO in the future months.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 110
Long Short
Effective
Date
Maturity
Date
Average
Price Classification Amount Classification Amount
24,960 7/1/2023 7/31/2024 $62.02 Derivative
Instrument $ 144,019 Deferred inflow $ 144,019
25,920 8/1/2023 8/31/2024 67.70
Derivative
Instrument 296,784 Deferred inflow 296,784
23,040 9/1/2023 9/30/2024 60.75
Derivative
Instrument 103,680 Deferred inflow 103,680
16,400 6/1/2023 7/31/2024 47.28
Derivative
Instrument (7,708) Deferred outflow (7,708)
15,600 7/1/2023 8/31/2024 49.90
Derivative
Instrument 33,540 Deferred inflow 33,540
16,800 8/1/2023 9/30/2024 53.45
Derivative
Instrument 95,760 Deferred inflow 95,760
$ 666,075 666,075 $
Long Short
Effective
Date
Maturity
Date
Average
Price Classification Amount Classification Amount
2,590,000 7/1/2020 12/31/2025 $2.42 Derivative
Instrument $ 2,314,545 Deferred inflow $ 2,314,545
5,180,000 1/1/2022 12/31/2025 2.64
Derivative
Instrument 3,489,490 Deferred inflow 3,489,490
2,745,000 1/1/2021 12/31/2025

0.56 Derivative
Instrument 2,687,338 Deferred inflow 2,687,338
5,490,000 1/1/2022 12/31/2025 1.03
Derivative
Instrument 2,821,825 Deferred inflow 2,821,825
$ 11,313,198 11,313,198 $
Grand Total 11,979,273 $ 11,979,273 $
Notional
Notional
Amount (MMBtu) Fair Value Change in Fair Value
Amount (MWh) Fair Value Change in Fair Value
Credit risk
Credit risk is the risk of loss due to a counterparty defaulting on its obligations. SVP is exposed to credit risk if hedging instruments are in asset positions. In order to eliminate counterparty credit risk, SVP has transacted both long term power and gas contracts on the Futures market on Intercontinental Exchange (ICE). As of June 30, 2024, $12.0 million of SVP’s open derivative power and gas contracts were in an asset position, and the fair values of those open contracts were positive. $8 thousand of SVP’s open derivative power contracts were in a liability position, and the fair values of those open contracts were negative. The open contract was with ADM Investor Service, Inc., a clearing member of ICE and a company of Archer Daniels Midland Company who was rated A by Standard & Poor’s as of June 30, 2024.

SVP’s policy for requiring collateral on hedging instruments varies based on individual contracts and counterparty credit ratings. Under the brokerage agreements with Archer Daniels Midland Company, the accounts are prefunded by SVP. If the account value falls below zero, margin calls are invoked. At June 30,

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 111
2024, SVP had posted collateral of $9,449,807 deposited with CAISO and Archer Daniels Midland Company for resource energy trading.

It is also SVP's policy to negotiate netting arrangements whenever it has entered into more than one bilateral transactions with counterparty. Under the terms of these arrangements, should one party become insolvent or otherwise default on its obligations, the non-defaulting party may accelerate and terminate all outstanding transactions and net their fair values so that a single amount will be owed by (or to) the non-defaulting party.

Termination Risk
SVP’s futures contracts are traded over the counter and have no termination risk.

Price Risk
With respect to price risk under power Futures contracts, on purchase contracts (long positions), SVP receives the CAISO NP15 average daily rate at settlement and pays the fixed contracted rate entered into on the trade date; on sales contracts (short positions), SVP pays the CAISO NP15 average daily rate at settlement and receives the fixed contracted rate entered into on the trade date. With respect to price risk under gas Futures contracts, on purchase contracts (long positions), SVP receives PG&E Citygate average daily price at settlement and pays the fixed contracted rate entered into on the trade date; on sales contracts (short positions), SVP pays the PG&E Citygate average daily price at settlement and receives the fixed contracted rate entered into on the trade date. SVP is exposed to risk because the contract prices are different from the settlement prices.

E. Repayment Requirements
As of June 30, 2024, the debt service requirements to maturity for the City’s long-term obligations, with determinable payment dates and the funds from which payment will be made are as follows:

Government Activities
For the Year
Ending June 30 Principal Interest Principal Interest Principal Interest 2025 1,085,000 $ 319,775 $ 5,795,000 $ 1,093,875 $ 11,211,995 $ 2,745,894 $ 2026 1,120,000 285,869 6,005,000 798,875 7,509,465 2,620,975 2027 1,150,000 249,469 6,320,000 490,750 7,632,310 2,504,015 2028 1,195,000 209,219 6,655,000 166,375 7,765,540 2,383,959 2029 1,235,000 167,394 - - 13,264,161 2,222,265
2030-2034 3,270,000 222,187 - - 53,440,798 7,830,788
2035-2049 - - - - 25,340,000 10,068,233
$ 1,453,913 9,055,000 $ 24,775,000 $ 2,549,875 $ 126,164,269 $ 30,376,129 $ Business-Type Activities (excluding Santa Clara Stadium Authority) Certificates of Participation Bonds Debt from direct borrowing

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 112
Principal Outstanding as Reported in Government Activities 9,055,000 $ Principal Outstanding as Reported in Business Type Activities 150,939,269 Total Principal Outstanding as Reported 159,994,269
Principal Outstanding - Stadium Authority(1)
228,667,826
Unamortized Discount/Premium 4,048,108
Total Long-term Obligations $ 392,710,203
(1) The principal outstanding for Stadium Authority is as of March 31, 2024. Please refer to Santa Clara Stadium Authority's separately issued Financial Statements Note 5 for details.

Reconciliation of Long-term Obligations
F. Debt Limitations and Restrictions
The amounts of the City’s legal debt limit and debt margin (as defined by Section 1309 of the City Charter) as of June 30, 2024, is $9.1 billion. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations, covenants, and restrictions.

G. Arbitrage
According to the regulations set forth by the U. S. Treasury Department, for bond issues subject to arbitrage rebate, earnings in excess of the stated bond rate must be rebated to the federal government every five years.

As of June 30, 2024, the City has nine outstanding bond issues that are subject to the arbitrage rebate regulations. The City monitors the earnings on each of these issues and records any accrued rebate liability at the end of each individual bond year.

H. Lease Liabilities
The City has recorded right to use leased assets as result of implementing GASB87. The assets are right to use assets for leased equipment in governmental activities and leased building in the business-type activities. The lease liabilities are amortized on a straight-line basis over the terms of the related leases.

A summary of governmental activities and business-type activities lease payable transactions for the fiscal year ended June 30, 2024, are as follows:

Balance
June 30, 2023 Addition Retirment
Balance
June 30,
2024
Current
portion
Governmental activities
Lease liabilities 252,118 $ - $ (212,705) $ 39,413 $ 39,413 $ Business-type activities
Lease liabilities 1,632,622 $ - $ (681,617) $ 951,005 $ 710,181 $ Total Lease liabilities 1,884,740 $ - $ (894,322) $ 990,418 $ 749,594 $

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 113
The future principal and interest lease payments as of June 30, 2024, are as follows:

For the Year
Ending June 30 Principal Interest Principal Interest
2025 39,413 102 710,181 6,920
2026 - - 240,824 553
Total 39,413 $ 102 $ 951,005 $ 7,473 $
Governmental activities Busines-type activities
I. Subscription Based IT Arrangements and Liabilities
In fiscal year 2023, the City implemented the provisions of GASB Statement No. 96, Subscription-Based Information Technology Arrangements. As of June 30, 2024, the City has recorded net intangible right-to-use subscription assets amounting to $12,677,191 with accumulated amortization of $3,441,363 in governmental activities and net intangible right-to-use subscription assets amounting to $3,837,038 with accumulated amortization of $864,051 in business-type activities. The subscription assets are offset with subscription liabilities.

A summary of governmental activities and business-type activities SBITA payable transactions for the fiscal year ended June 30, 2024, are as follows:

Balance Balance Current
June 30, 2023 Additions Retirements June 30, 2024 Portion Governmental activities
SBITA liabilites 8,917,804 $ 2,078,197 $ (1,792,058) $ 9,203,943 $ 2,011,963 $ Business-type activities
SBITA liabilites 2,718,009 $ 729,014 $ (470,555) $ 2,976,468 $ 481,034 $ Total SBITA liabilities 11,635,813 $ 2,807,211 $ (2,262,613) $ 12,180,411 $ 2,492,997 $ As of June 30, 2024, the value of the subscription liability was $9,203,943 in governmental activities and $2,976,468 in business-type activities. The City is required to make annual principal and interest payments throughout the life of each subscription. The interest rate of each subscription is based on the State of California incremental borrowing rate for GASB96 in the year contract is effective. As part of each subscription, the City has recorded an intangible right to use subscription asset and accumulated amortization as disclosed in Note 9A.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 114
The future principal and interest SBITA payments as of June 30, 2024, are as follows:

For the Year
Ending June 30 Principal Interest Principal Interest
2025 2,011,963 $ 183,845 $ 481,034 $ 80,265 $
2026 2,013,008 187,444 503,819 67,315
2027 1,435,546 137,403 527,486 53,844
2028 907,479 101,338 552,141 39,762
2029 935,702 78,263 382,523 25,069
2030-2034 1,734,950 130,270 529,465 20,782
2035-2039 165,295 5,403 - -
Total 9,203,943 $ 823,966 $ 2,976,468 $ 287,037 $
Governmental activities Business-type activities
NOTE 11 – SOLID WASTE LANDFILL CLOSURE
The City of Santa Clara All Purpose Landfill (Landfill) was closed in September 1993. Federal and state laws and regulations require closure activities such as removal of landfill structures, decommissioning of environmental control systems, site security, and final cover construction and postclosure care such as ongoing monitoring of environmental impact. The City's postclosure plan (Plan) accepted by the California Integrated Waste Management Board, which is now the California Department of Resources Recycling and Recovery (CalRecycle), addresses all the attendant issues. Based on the Plan and pertaining laws and regulations, an estimated Landfill Postclosure Care Cost Obligation is recorded and updated annually. The postclosure care liability is accrued in the Solid Waste Enterprise Fund in accordance with GAAP. This obligation is payable from solid waste user fees.

The City also has a Pledge of Revenue Agreement establishing financial assurance for postclosure maintenance of the Landfill with CalRecycle, which was adopted on October 12, 1999. Financial assurance in the amount of $600,000 will be maintained in a separate account. In addition, the agreement requires funds to be pledged annually for post-closure maintenance and corrective action costs.

The City has pledged $271,650 for postclosure maintenance expenses and $537,133 for corrective action in 2024-25. These amounts are subject to annual inflation factors, as stipulated by CalRecycle.

At June 30, 2024, a liability in the amount of $6,713,426 was reported based on the estimated remaining postclosure care costs to meet the regulatory requirements. During fiscal year 2024, the City incurred postclosure expenses of $1,274,027 and increased the liability by $1,855,417 based on revised estimates of future costs. The estimated liability is based on the amount that would be paid if all equipment, facilities, and services required to monitor and maintain the landfill were acquired as of June 30, 2024. However, the actual cost of postclosure care and corrective action may be higher or lower due to inflation, changes in technology, or changes in landfill laws and regulations.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
115
115
NOTE 12 – PARTICIPATION IN JOINT VENTURES
A. Investments in Joint Venture
The City participates in significant joint ventures: Northern California Power Agency (NCPA), the Transmission Agency of Northern California (TANC), San Jose-Santa Clara Water Pollution Control Plant and Clean Water Financing Authority (SJSC), M-S-R Energy Authority (MSR EA), M-S-R Public Power Agency (MSR PPA) and Silicon Valley Animal Control Authority (SVACA).

The separately issued financial statements of these joint ventures (as noted below) are available on request.

Date of latest audited
financial statement Joint Venture’s address
NCPA 6/30/2023 651 Commerce Dr. Roseville, CA 95678
TANC 6/30/2023 P.O. Box 15129 Sacramento, CA 95851
SJSC 6/30/2023 200 E. Santa Clara St. San Jose, CA 95113 MSR EA 12/31/2023 P.O. Box 4060 Modesto, CA 95352
MSR PPA 12/31/2023 P.O. Box 4060 Modesto, CA 95352
SVACA 6/30/2023 3370 Thomas Road Santa Clara, CA 95051
The City’s basic financial statements reflect the following investments in joint ventures as of June 30, 2023 (latest information available):

Participating
percentage Investment
Method of
accounting
NCPA
Geothermal 44.39%
Hydroelectric 37.02%
Combustion Turbine 41.67%
Lodi Energy Center 25.75%
TANC 9.69% 9,136,635 Equity
SJSC (1) 19.74% 272,373,132 Equity
MSR EA 33.40% - Suspended
MSR PPA 35.00% 14,325,713 Equity
SVACA 56.50% 5,501,554 Equity
Total $343,084,458
$41,747,424 Equity
(1) The investment in San Jose/Santa Clara Regional Wastewater Facility includes the current year capital contribution.

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2024
NOTE 12 – PARTICIPATION IN JOINT VENTURES (continued)
116
B. Contingent Liability
Under the terms of the various joint venture agreements, the City is contingently liable for a portion of the long-term debt of the entities under take-or-pay agreements, letters of credit, guarantees or other similar agreements. Sewer revenue bonds issued by the San Jose-Santa Clara Clean Water Financing Authority were no longer outstanding as they were fully redeemed on November 15, 2020. Based on the most recent audited financial statements of the individual joint ventures as of June 30, 2023, the City was contingently liable for long-term debt as follows (in thousands):

City Council and Authorities ConcurrentDecember 3, 2024

City Council and Authorities Concurrent
December 3, 2024