_____________________________________________________________________
MONTHLY FINANCIAL STATUS REPORT
September 2024
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 aerospace
1. 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-banner- years-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
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
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
Use d
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 Use d 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 $2.2 million.
REVENUE - FISCAL YEAR 2024/25
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/302024 Use d Parks & Recreation -$ 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 $10 million, or 6% of the amended budget, well below par of 25%.
As part of the adoption of the FY 2024/25 and FY 2025/26 biennial capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2024. Necessary additional adjustments to the capital carryover amounts are included as part of the Budgetary Year-End Report for FY 2023/24.
11 City of Santa Clara
Financial Status Report as of September 30, 2024
EXPENDITURES - FISCAL YEAR 2024/25
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/302024 Use d Fire 1,473,700$ 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 $
F
und 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 Use d 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 PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2024/25
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 4
th 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 $14.7 million, or 3% of the amended budget. Similar to the general government capital funds, capital funds were carried over from FY 2023/24 as part of the FY 2024/25 and FY 2025/26 budget adoption process for those projects that were not expected to be completed by June 30, 2024. Additional necessary adjustments to the capital carryover amounts based on actual year-end expenditures are included in the FY 2023/24 Budgetary Year-End Report for that payment.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 9/302024 Use d Convention Center Capital
Fund
550,000$ -$ 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 Use d 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
Fis cal Year
2024/25
Year To Date Designated Use
City Manager's Office 0 2 Help Your Neighbor
Electric Utility 25 25 N eighborhood 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$