Audit Committee
November 24, 2025

City of Santa Clara
Meeting Agenda
Audit Committee
Hybrid Meeting
Sparacino Conference Room/Virtual
City Hall - East Wing
1500 Warburton Avenue
Santa Clara, CA 95050
1:00 PMMonday, November 24, 2025
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

CONSENT CALENDAR

1. Action on Audit Committee Minutes of September 22, 202525-1643 Approve the Audit Committee minutes of September
22, 2025.

Recommendation:

PUBLIC PRESENTATIONS
[This item is reserved for persons to address the body on any matter not on the agenda that is within the subject matter jurisdiction of the body. 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.]

GENERAL BUSINESS

Audit Committee Meeting Agenda November 24, 2025

2. Overview of the Draft City of Santa Clara Audited Annual Comprehensive Financial Report (ACFR) and Audited Silicon Valley Power (SVP) Financial Statements for Fiscal Year Ended June 30, 2025
25-1644
Accept the City of Santa Clara Audited Annual
Comprehensive Financial Report and Silicon Valley
Power Financial Statements for Fiscal Year Ended
June 30, 2025 and recommend that the reports be
forwarded to the full Council at the December 9, 2025
Council and Authorities Concurrent meeting for
Council action to note and file.

Recommendation:

ADJOURNMENT
Future Audit Committee meetings will be scheduled at a later date.

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.

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
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
25-1643 Agenda Date: 11/24/2025

REPORT TO AUDIT COMMITTEE

SUBJECT
Action on Audit Committee Minutes of September 22, 2025

RECOMMENDATION
Approve the Audit Committee minutes of September 22, 2025.

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City of Santa Clara
Meeting Minutes
Audit Committee
Draft
11:00 AM Hybrid Meeting
CMO Sparacino Conference Room/Virtual
City Hall - East Wing
1500 Warburton Avenue
Santa Clara, CA 95050
09/22/2025
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 Hardy called the meeting to order at 11:03 AM.

Chair Karen Hardy, Member Raj Chahal, and Member Albert GonzalezPresent 3 -

CONSENT CALENDAR

1. 25-830 Action on Audit Committee Minutes of June 12, 2025 Recommendation: Approve the Audit Committee minutes of June 12, 2025.

A motion was made by Member Gonzalez, seconded by Member Chahal, to approve the Audit Committee Minutes of June 12, 2025.

The motion carried with the following vote:

Aye: Chair Hardy, Member Chahal, and Member Gonzalez3 -

PUBLIC PRESENTATIONS
None

GENERAL BUSINESS

09/22/2025Audit Committee Meeting Minutes

2. 25-831 Overview of Santa Clara Stadium Authority Fiscal Year 2024/25 Annual Financial Statements and Audit Results Presentation by KPMG, LLP Recommendation: Accept the Santa Clara Stadium Authority Fiscal Year 2024/25 Annual Financial Statements and recommend that the Stadium Authority Board note and file the report at the October 7, 2025, Joint Council and Authorities Concurrent and Stadium Authority meeting.

Treasurer, Kenn Lee gave a PowerPoint presentation.

Auditors, Jaime Cavin and Ryan Ficker, KPMG, gave a PowerPoint presentation.

Committee Members' questions and comments were raised throughout the presentation.

Treasurer Lee, Auditor Cavin, Auditor Ficker, and Assistant Finance Director, Linh Lam addressed the questions and comments.

A motion was made by Member Chahal, seconded by Member
Gonzalez, to accept the Santa Clara Stadium Authority 2024/25 Annual Financial Statements and recommend that the Stadium Authority Board note and file the report as soon as possible at a Joint Council and Authorities Concurrent and Stadium Authority meeting. The motion carried with the following vote:

Aye: Chair Hardy, Member Chahal, and Member Gonzalez3 -

ADJOURNMENT
Chair Hardy adjourned the meeting at 12:16 PM.

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

MEETING DISCLOSURES

09/22/2025Audit Committee Meeting Minutes
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.

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
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
25-1644 Agenda Date: 11/24/2025

REPORT TO AUDIT COMMITTEE

SUBJECT
Overview of the Draft City of Santa Clara Audited Annual Comprehensive Financial Report (ACFR) and Audited Silicon Valley Power (SVP) Financial Statements for Fiscal Year Ended June 30, 2025

BACKGROUND
City Charter Section 1319 requires that an independent certified public accountant (CPA) audit the City’s records and accounts on an annual basis. In compliance with the Charter, the City engaged the audit firm of Maze and Associates to perform an independent audit of the City’s financial statements.

The ACFR and SVP financial statements present the audited financial information of the City in accordance with Generally Accepted Accounting Principles (GAAP) applicable to government entities. The statements provide the Audit Committee (Committee) and City Council valuable information for financial oversight as well as providing information to the residents of Santa Clara.

DISCUSSION
The role of the Committee is to provide oversight of the City’s financial reporting processes, internal controls, and independent auditors. Amy Meyer, Shareholder, from Maze and Associates will present the audit results to the Committee and provide an overview of the audit. This includes the audit report, financial statement disclosures, internal control related matters and other items.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environment Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.

FISCAL IMPACT
Costs associated with the preparation of this report are included in the City’s FY 2025-26 Adopted Operating Budget.

PUBLIC CONTACT
Public contact was made by posting the Audit Committee 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 protected] <mailto:[email protected]>, or at the public information desk at any City of Santa Clara public library.

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25-1644 Agenda Date: 11/24/2025

RECOMMENDATION
Accept the City of Santa Clara Audited Annual Comprehensive Financial Report and Silicon Valley Power Financial Statements for Fiscal Year Ended June 30, 2025 and recommend that the reports be forwarded to the full Council at the December 9, 2025 Council and Authorities Concurrent meeting for Council action to note and file.

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

ATTACHMENTS

1. Draft Annual Comprehensive Financial Report (ACFR)

2. Draft Silicon Valley Power (SVP) Financial Statements

3. Draft Memorandum on Internal Control

4. Draft Required Communications

5. FY 2024-25 Audit Overview Presentation from Staff

6. Audit Presentation from Maze
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ANNUAL COMPREHENSIVE FINANCIAL
REPORT

FISCAL YEAR ENDED JUNE 30, 2025

THE

MISSION CITY

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

PREPARED BY DEPARTMENT OF FINANCE
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Introductory Section

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CITY OF SANTA CLARA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

TABLE OF CONTENTS
For the year ended June 30, 2025
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 M
anagement’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 ................ 38 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 Draft

CITY OF SANTA CLARA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

TABLE OF CONTENTS
For the year ended June 30, 2025

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 Draft

CITY OF SANTA CLARA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

TABLE OF CONTENTS
For the year ended June 30, 2025

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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 2024-25 and 2015-16 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 ...................................................................... 232

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

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Letter of Transmittal

November 30, 2025

The Honorable Mayor and City Council and Residents of the City of Santa Clara 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, 2025. 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. The City has a comprehensive internal control framework that is designed to protect the government’s assets from loss, theft, or misuse and to ensure the compilation of 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, 2025 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, 2025 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.

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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. Under the standards governing Single Audit engagements, 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 2026.

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 134,587. The City remains a highly desirable place to live and work 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 publicly elected officials.

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The City provides a full range of services. These services include police, fire protection and emergency dispatch; electric, water, solid waste, 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 2024-25 since the adoption of the last biennial operating budget. On a national level, unemployment rate remained unchanged at 4.1% in June 2025 compared to the prior year. At the state level, the California unemployment rate was at 5.4% in June 2025, an increase of 0.1% compared to the prior year. The unadjusted unemployment rate in the San José- Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) increased slightly from 4.2% in June 2024 to

4.7% in June 2025.

The City’s economically sensitive revenues experienced strong growth during fiscal year 2024-25. Property Tax collections continued to reflect solid assessed valuation growth due to property sales and new construction projects. Property Tax remains the largest revenue category for the City’s General Fund and those receipts were up 5.8% in fiscal year 2024-25. General Sales Tax receipts experienced unusually high growth of 28.5% in fiscal yar 2024-25 due primarily to increases in the business-to-business sector.

Transient Occupancy Tax receipts were also up 20.8% in fiscal year 2024-25, reflecting a one percent rate increase effective January 1, 2024 (from 11.5% to 12.5%) and an additional one percent increase effective January 1, 2025 (from 12.5% to 13.5%) as well as increased activity.

With stronger revenue growth in fiscal year 2024-25, the General Fund Ten-Year Financial Forecast for fiscal year 2025-26 through fiscal year 2034-35 showed improvement with a projected General Fund surplus of $9.3 million in fiscal year 2025-26, followed by a small shortfall in 2026-27 of $0.1 million. This allowed for a FY 2025-26 and FY 2026-27 Adopted Operating Budget with targeted investments that funded many of the City Council’s identified priorities as well as enhanced the City’s operating reserves, restoring the Budget Stabilization Reserve (BSR) to the Council policy level of 25% of expenditures. The General Fund budget actions were intended to address Council priorities identified as part of the Council Priority Setting session and other high priority needs while also maintaining the City’s fiscal stability.

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:
 Enhance Community Engagement and Transparency
 Deliver and Enhance High Quality Efficient Services and Infrastructure  Manage Strategically Our Workforce Capacity and Resources  Promote and Enhance Economic, Housing and Transportation Development  Promote Sustainability and Environmental Protection
 Enhance Community Sports, Recreational and Arts Assets Draft

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 Ensure Compliance with Measure J and Manage Levi’s Stadium 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 or items funded on a pay-as-you-go method with one-time sources;  The cost to fully fund capital infrastructure needs;
 Additional costs to restore frozen positions, add positions to address growth in the City, and add new services;
 Permanent funding for pilot programs such as Via Shuttle/SV Hopper and Vision Zero;  Enhanced funding to address the City’s pension liability (the City is below the State average in pension funding);
 Additional contributions to Reserves (Budget Stabilization Reserve, Pension Reserve); and  The financial impacts of new developments that may have a positive impact given the uncertainty regarding the timing.

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:
 Uncertainty regarding results of tariffs and other federal actions;  Potential for an economic downturn or recession;
 State/federal legislative changes and legal challenges;  Labor costs outside the budget assumptions;
 CalPERS actuarial changes or reform actions; and
 Unanticipated critical capital/infrastructure needs.

The City’s financial position significantly improved since the adoption of the last biennial operating budget for fiscal year 2023-24 and fiscal year 2024-25. The latest Ten-Year General Fund Forecast, updated in April 2025, shows improvement with a surplus in fiscal year 2025-26 followed by small shortfalls and surpluses in the remaining years. This improvement is the result of stronger revenue growth since the last Draft

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Forecast that was realized during a period of solid economic growth. However, there is now a significant amount of economic uncertainty related to trade tariffs, fiscal policy, and geopolitical risk with the new administration. It is unknown how these factors will impact the local economy.

Historically, the City has funded many of capital infrastructure and equipment needs with one-time funds on a pay-as-you-go basis. The lack of sufficient one-time funding has resulted in a backlog of unmet/deferred infrastructure needs. On November 5, 2024, voters approved Measure I – a $400 million general obligation bond that will fund needed infrastructure projects in the City. The $400 million bond proceeds will enhance the City’s efforts to address over $600 million in unfunded infrastructure needs such as aging fire stations, storm drain systems, and aquatic facilities. The expenditure plan includes the following project areas:
 Fire Stations and Emergency Response ($142,235,450)
 Parks, Libraries, Senior Center, and Aquatics Facilities ($115,258,750)  Storm Drain System Improvements ($46,000,000)
 Police Facilities ($43,987,500)
 Streets and Transportation ($41,170,000)
 Historic Buildings and Beautification ($9,200,000)
The Bonds will be issued in phases and the first $100 million is expected to be issued in fiscal year 2025-

26. Internal Controls
City management staff are 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 Draft

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budget amendment during the fiscal year which may include the use of reserves or fund balances, and approval of appropriations of grant monies or other revenues. 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.

This is the third year of audit in the latest 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 in 2013 by the Uniform Guidance. The auditor’s report on the basic financial statements and the supplementary combining statements and schedules is included in the financial section of this report. The auditor’s report related specifically to the single audit will be included in a separately issued single audit document that will be on file with the City Clerk’s Office as well as posted on the Finance page of the City’s website.

MAJOR INITIATIVES
Addressing our Capital Infrastructure
In June 2024, 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 totaled $928 million and the Five-Year CIP totaled $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 General Fund shortfalls projected in the fiscal year 2023-24 and fiscal year 2024-25 Biennial Operating budget were balanced with a combination of strategies, including the use of one-time reserves, new revenues, and one-time and ongoing expenditure savings. The multi-pronged approach balanced the competing goals of aligning ongoing revenues and expenditures and minimizing the service delivery impacts to the community. It also allowed time for General Fund revenues to recover from the pandemic.

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In June 2024, adjustments to the fiscal year 2024-25 budget were approved to update revenue estimates and account for updated labor costs and non-personnel costs in the General Fund and other funds. In the General Fund, $0.4 million from the General Fund Budget Balancing Reserve and $0.5 million from the Budget Stabilization Reserve were used to balance the budget.

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 high-density transit-oriented urban center development projects:

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 light industrial office parks 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 light industrial office parks and lab 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. Most recently, the development of a Community Benefits Program was kicked-off with a targeted adoption date in fourth quarter of calendar year 2026.

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.

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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.

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 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.

There are three approved projects currently underway: 1). An eight-story, 284-unit multifamily residential building, 2). A new four-story office and engineering building with one level of subsurface parking, at- grade parking, and associated site improvements on a 5.63 acre site developed by Arista Networks, and 3).

A 113,272 square feet office and prefabrication facility with 248 parking spaces, and associated landscape and site improvements.

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. Of the eleven approved projects, mostly located on Calle De Luna and Calle Del Mundo, developed by multiple developers in this planned area, four high-density projects have been completed, providing 2,400 residential units and 5,000 square feet of retail space. Another two developments with over 1,200 residential units and 43,000 square feet of retail space, are currently under construction. The remaining five projects are at various stages of development with a total of over 3,000 dwellings and another 3,000 square feet in retail space.

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.

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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, 2024. 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-three consecutive years.

To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report 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 certificate.

ACKNOWLEDGEMENTS
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. 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 Councilmembers for their unfailing support for maintaining the highest standards of professionalism in the management of the City’s finances.

Respectfully submitted,
______________________________ ______________________________ Jōvan D. Grogan Kenn Lee
City Manager Director of Finance

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Roster of Council and Commission Members

ROSTER OF COUNCIL AND COMMISSION MEMBERS

CITY COUNCIL

Mayor Lisa M. Gillmor
Councilmember District 1 Albert Gonzalez
Councilmember District 2 Raj Chahal
Councilmember District 3 Karen Hardy
Councilmember District 4 Kevin N. Park
Councilmember District 5 Sudhanshu “Suds” Jain
Councilmember District 6 Kelly G. Cox

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

Kuku Das, Candida A. Diaz, Neetu Garg, Charles
Pontious, Abinas Roy, Louis Samara, Debra von
Huene,
Michael Celso, Ivonne Inciarte, Patricia Leung,
Kathleen Romano, Ed Stocks, Ana Vargas-
Smith, Kaushal Varshney

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, Brittany
Ricketts, Edward A. Souza

SENIOR ADVISORY COMMISSION

SALARY SETTING COMMISSION
Rick Andrews, Kris Kishor Kapadia, Srinivasan
Manivannan, Rebecca J. Shelden, Alma Soto,
Maria Vaz, Vacant
Natasha Humphries, Mihir Kaddad, David
Kertes, MV Kumar, John Sontag

YOUTH COMMISSION

Seoyun Chong, Julianna Arias Hernandez, Allysa
Domensino, Mateo Espinal, Namita Gaidhani,
Srikha Gopisetti, Neha Israni, Rebecca Kunze,
Drew Madriaga, Malia Martin, Ayaan Mathur
(Alternate), Samaira Mehta, Brian Rong, Ibrahim
Rayees (Alternate), Samarth Suresh, Niharika
Uppalapati, Aneesha Vemu

DOWNTOWN COMMUNITY TASK FORCE

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

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EXECUTIVE MANAGEMENT TEAM

CITY MANAGER
Jōvan D. Grogan

CITY ATTORNEY CITY AUDITOR
Glen Googins Vacant

CITY CLERK
Bob O’Keefe

ASSISTANT CITY MANAGER
Elizabeth Klotz

ASSISTANT CITY MANAGER ASSISTANT CITY MANAGER
Clarence Baker Aracely Azevedo

CHIEF OF POLICE FIRE CHIEF
Cory Morgan Ruben Torres

DIRECTOR OF HUMAN RESOURCES DIRECTOR OF FINANCE
Marco Mercado (Acting) Kenn Lee

DIRECTOR OF PARKS & RECREATION DIRECTOR OF INFORMATION TECHNOLOGY Damon Sparacino Adam Kostrzak

CITY LIBRARIAN CHIEF ELECTRIC UTILITY OFFICER
Patty Wong Nicolas Procos

DIRECTOR OF WATER AND SEWER UTILITIES DIRECTOR OF PUBLIC WORKS John Ramirez Craig Mobeck

DIRECTOR OF COMMUNITY DEVELOPMENT DIRECTOR OF ECONOMIC DEVELOPMENT &

SUSTAINABILITY
Afshan Hamid Reena Brilliot

Executive Management Team
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GFOA Certificate of Achievement

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Organization Chart

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Local Map
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Financial Section
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CITY OF SANTA CLARA

COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the year ended June 30, 2025

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, 2025. 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, 2025 are as follows:
 In the fiscal year 2024-25, the City's assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $3.1 billion. Out of this amount, $516 million represents unrestricted net position, which is $386 million higher than in the fiscal year 2023-24.

This is made up of a negative balance of $254 million for governmental activities and a positive balance of $770 million for business-type activities. The negative net position in governmental activities primarily stems from a net pension liability of $527 million and a net Other Post Employment Benefits (OPEB) liability of $25 million as of June 30, 2025.  The City's total net position increased by $420 million, with $113 million increase in governmental activities, primarily driven by the steady economic growth since the pandemic. Business-type activities accounted for the remaining $307 million increase, including a $270 million rise in the Electric Utility Fund, driven by higher rates, higher consumption and reduced resource purchase expenditures. In addition, the Santa Clara Stadium Authority Fund increased by $49 million mainly due to an $18 million reduction in operating expenses and a $23 million increase to beginning net position from an unearned revenue restatement recorded in the current fiscal year.  The total net pension liability, covering both governmental activities and business-type activities, decreased $17 million or 2.5% during fiscal year 2024-25, declining to $669 million from $686 million. This reduction was primarily attributed to higher investment income during the fiscal year 2023-24. As of June 30, 2025, deferred outflows of resources related to pensions amounting to $134 million, down $35 million from the previous year, largely due to a $27 million decrease in deferred outflows from differences between projected and actual pension plan investment earnings.

Deferred inflows of resources related to pensions totaling $1 million at June 30, 2025, a $3 million decrease 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 $1 million or 2.5% during fiscal year 2024-25, reducing it to $35 million at June 30, 2025, compared to $36 million in fiscal year 2023-24. 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 $130 million, reaching to $1,157 million as of June 30, 2025. The increase in liabilities is primarily due to a $101 million increase in long-term debt resulting from the issuance of the 2024A Electric Revenue Bonds within the business-type activities.
 As of June 30, 2025, the City’s governmental funds reported combined fund balances of $490 million, an increase of $89 million from the prior year. At June 30, 2025, $163 million is in the unassigned fund balance and available for spending at the City’s discretion.

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6  At the close of fiscal year 2024-25, the General Fund had assets of $524 million and a fund balance of $241 million. This represents an increase in fund balance of $60 million, or 33.0% from prior fiscal year. The increase reflects the steady improvement of the local economy since the pandemic.

Of the total fund balance, $193 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, 2024 through March 31, 2025. As of March 31, 2025, the carrying value of Levi’s Stadium, net of depreciation, is $667 million, and the assets of the Stadium Authority exceeded its liabilities and deferred inflow of the lease revenues by $182 million.
 The City’s total outstanding long-term debt increased by $101 million, primarily reflecting the issuance of $112 million in Electric 2024 Series A Revenue Bonds with a $17 million bond premium, partially offset by the repayment of $25 million for Stadium Authority debt, Electric revenue bonds, and Sewer loans.

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.

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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 returned to the activities in which they were created, along with any residual net position of the Internal Service Funds.

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8 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 business- type activities for the fiscal year ending June 30, 2025. As noted earlier, the City’s total assets and deferred outflows of resources exceed total liabilities and deferred inflows of resources by $3.1 billion at the end of the fiscal year, an increase in net position of $420 million.

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9 2025 2024(1)
2025 2024(1)
2025 2024(1)
Cash and investments 525$ 442$ 1,272$ 936$ 1,797$ 1,378$ Lease receivable 254 252 586 598 840 850 Other assets 186 140 584 549 770 689 Capital assets 687 669 1,527 1,498 2,214 2,167 Total Assets 1,652 1,503 3,969 3,581 5,621 5,084 Deferred outflows on derivative - - 1 - 1 - Deferred outflows from refunding - - 4 5 4 5 Deferred outflows OPEB related 2 1 - - 2 1 Deferred outflows pension related 109 136 25 33 134 169 - - Total Deferred Outflows of Resources 111 137 30 38 141 175 8 9 486 384 494 393 Right-to-use assets liability 9 9 3 4 12 13 Net OPEB liability 25 26 10 10 35 36 Net pension liability 527 538 142 148 669 686 Other liabilities 111 87 540 534 651 621 Total Liabilities 680 669 1,181 1,080 1,861 1,749 - - 3 12 3 12 Deferred inflows from refunding - - 1 1 1 1 Deferred inflows Lease related 246 246 564 582 810 828 Deferred inflows OPEB related 2 1 1 1 3 2 Deferred inflows pension related 1 3 - 1 1 4 Total Deferred Inflows of Resources 249 250 569 597 818 847 Net investment in capital assets 670 650 1,087 1,145 1,757 1,795 Restricted 418 353 392 385 810 738 Unrestricted (254) (282) 770 412 516 130 Total Net Position 834$ 721$ 2,249$ 1,942$ 3,083$ 2,663$ Table 1
Governmental And Business-Type Net Position
(in millions)
Governmental Activities
Long-term debt outstanding
Business-Type Activities Total
Deferred inflows on derivative
instruments
(1) Restated for the changes dicussed in Note 6F, but not for the implementation of GASB statement No. 101 and accounting policy change discussed in Note 18E.

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10 The largest portion of the City’s net position, $1.8 billion (57%), is its investment in capital assets (e.g., land, infrastructure, buildings, machinery and equipment, right-to-use leased assets, and right-to-use subscription assets), 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 $810 million (26%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $516 million (17%) 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 Workers’ Compensation Insurance Claims Internal Service Fund.

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11 2025 2024(1) 2025 2024(1)
2025 2024(1)
65$ 63$ 1,144$ 1,063$ 1,209$ 1,126$
21 23 - - 21 23 21 11 3 3 24 14 79 62 - - 79 62 95 90 - - 95 90 27 22 - - 27 22 7 7 - - 7 7 39 33 - - 39 33 26 18 58 36 84 54 7 10 17 12 24 22 - - 4 19 4 19 23 10 - - 23 10 Other 26 12 - - 26 12 436 361 1,226 1,133 1,662 1,494
35 33 - - 35 33 2 1 - - 2 1 2 2 - - 2 2 2 2 - - 2 2 11 9 - - 11 9 47 46 - - 47 46 28 28 - - 28 28 101 98 - - 101 98 84 80 - - 84 80 20 19 - - 20 19 14 13 - - 14 13 - - 644 584 644 584 - - 64 58 64 58 - - 55 36 55 36 - - 10 9 10 9 - - 40 38 40 38 - - 1 1 1 1 - - 17 19 17 19 - - 80 91 80 91 346 331 911 836 1,257 1,167 90 30 315 297 405 327 5 3 (5) (3) - - 95 33 310 294 405 327 Restatement-Change in Accounting Principal (7) - (3) 9 (10) 9 Restatement-Change in Accounting Policy 25 - - - 25 - 721 688 1,942 1,639 2,663 2,327
834$ 721$ 2,249$ 1,942$ 3,083$ 2,663$
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
Transfers in (out)
Water Recycling
Solid Waste
Cemetery
Equity in income of joint ventures
Library
Utilities:

Electric
General revenues:

Taxes:

Transient occupancy
Other
Ad valorem property
Sales
Capital grants and contributions
Operating grants and contributions
Revenues:

Program revenues:

Activities
Charges for services
Activities Total
Table 2
Governmental and Business-Type Changes in Net Position
(in millions)
Governmental Business-Type
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
(1) Restated for the changes dicussed in Note 6F, but not for the implementation of GASB statement No. 101 and accounting policy change discussed in Note 18E.

Expenses:

General Administration
City Clerk
City Attorney
Human Resources
Santa Clara Convention Center

Governmental Activities – During the fiscal year 2024-25, the City’s governmental activities increased net position by $113 million, primarily due to higher tax revenues and other income sources. Key drivers Draft

12 included a $17 million increase in Sales Tax, a $5 million increase in Ad Valorem Tax, and a $5 million increase in Transient Occupancy Taxes, reflecting continued economic recovery. Additional contributions came from an $11 million increase in performance rent revenues from stadium events, a $5 million contribution from the Stadium to the City, and a $3 million increase in Housing Impact Fees. The beginning net position also increased by $18 million due to the implementation of GASB 101 and an accounting policy change related to the recognition of unavailable revenues from long-term loan programs. These revenue gains strengthened the City’s financial position, providing additional resources to support public services, infrastructure investments, and long-term financial stability.

Business-type Activities – The City’s business-type activities increased net position by $307 million in fiscal year 2024–25. The majority of this growth is attributable to the Electric Utility Fund, which reported a $270 million increase. This improvement reflects higher service charge revenues driven by a 5% rate increase effective July 1, 2024, increased customer consumption, stronger interest earnings, and higher developer contributions during the year. The Stadium Authority also contributed to the overall increase, reporting a $26 million gain. This result was driven by higher performance rent from stadium events and reduced operating costs. In addition, the Stadium’s beginning net position increased due to a $23 million unearned revenue restatement.

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
18% Ad valorem property taxes
22%
Transient occupancy taxes
6%
Other taxes
2%
Investment earnings
6%
Contribution in lieu
9%Rents and royalties
5%
Program revenues
25%
Other revenues
6%
Sources of Revenue

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13 The following analysis presents a comparison of fiscal year 2024-25 and fiscal year 2023-24 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
2025 2024 2025 2024
General Administration 35$ 33$ 14$ 8$ City Clerk 2 1 2 1 City Attorney 2 2 3 2 Human Resources 2 2 2 2 Finance 11 9 8 6 Public Works 47 46 12 15 Parks and Recreation 28 28 21 24 Public Safety:

Police 101 98 98 96 Fire 84 80 68 67 Planning and Inspection 20 19 - (1) Library 14 13 13 13 Totals 346$ 331$ 241$ 233$ of Services
Net Cost
Table 3
Governmental Activities
(in millions)

In fiscal year 2024-25, the total cost of services increased by $15 million, while the net cost of services increased $8 million compared to the previous year.

The increase in the total cost of services is largely driven by a $2 million rise in the General administration driven by the higher interfund allocation in fiscal year 2024-25 and a $7 million increase in the Public Safety costs during fiscal year 2024-25 primarily due to the higher personnel costs.

The net cost of services in the General Administration increased by $6 million from the prior year, reaching $14 million in fiscal year 2024-25. This increase is primarily attributed to a $8 million increase in the cost of service with a $3 million decrease in the charges for services.

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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
2025 2024 2025 2024
Utilities:

Electric 644 $ 584 $ (224)$ (200)$ Water 64 58 (2) 2 Sewer 55 36 (2) (32) Water Recycling 10 9 - - Solid Waste 40 38 (1) (1) Cemetery 1 1 - - Santa Clara Convention Center 17 19 (1) (1) Santa Clara Stadium Authority 80 91 (7) 6 Totals 911 $ 836 $ (237)$ (226)$ Net Cost
of Services
Table 4
Business-Type Activities
(in millions)

In fiscal year 2024-25, the City's business-type total cost of services increased by $75 million, leading to a $11 million reduction in the net cost of services.

The cost of services in the Electric Utility Fund increased by $60 million up to $644 million in fiscal year 2024-25. The increase was driven by higher expenses for resource purchases. The net cost of services in the Electric Utility Fund is at negative $224 million, reflecting a $24 million reduction from fiscal year 2024-25. This decrease in net cost is primarily due to a $96 million increase in revenue on charges for services as a result of rate increase and higher consumption during the fiscal year.

The cost of services in the Sewer Utility Fund increased by $19 million to $55 million. This increase is primarily attributed to the recognition of a $15 million equity loss in the sewer joint project with the City of San Jose. The net cost of services for the Sewer Utility raised to negative $2 million, a $30 million increase from the previous year. This significant net cost change is primarily due to the prior year’s $20 million equity gain in the sewer joint project with the City of San Jose.

The cost of services in the Santa Clara Stadium Authority (Stadium Authority) decreased by $11 million, from $91 million in fiscal year 2023-24 to $80 million in fiscal year 2024-25, while the net cost of services declined to negative $7 million. This reduction is primarily due to lower operating expenditures, including decreased Stadium Manager costs, Non-NFL event expenses, and reduced public safety costs above the threshold. The Stadium Authority is responsible for reimbursing the Forty Niners SC Stadium Company LLC for any NFL public safety costs that exceed the annual cost threshold.

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15 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, 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, 2025, the City’s governmental funds reported a combined fund balance of $490 million, an increase of $89 million or 22.3% in comparison with the prior fiscal year. Approximately 33.7% or $163 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, $8 million, 2) restricted for particular purposes, $187 million, 3) committed for particular purposes, $115 million, or 4) assigned for particular purposes, $17 million.

Governmental fund revenues were $440 million, reflecting an increase of $65 million, or 17.6%, from $375 million in the prior year. The overall revenue increase is mainly attributed to following factors:
 a $20 million or 64.9% increase in interest and rent driven by higher performance rent revenues from Stadium events and increased interest revenue compared to the previous fiscal year.  a $17 million or 28.5% increase in the sales tax from substantial growth in business-to-business activities.
 a $10 million or 115.2% increase in the other revenue reflecting a $5 million contribution from the Stadium and a $3 million increase in the Housing impact fees compared to the prior year.  A $6 million or 17.3% increase in the contribution in-lieu tax from the Electric Utility Fund, resulting from higher charges for services due to rate increases.  a $5 million or 5.8% increase in property tax revenues reflecting higher assessed property value.  a $5 million increase in the Transient Occupancy Tax due to the tax rate increase and the ongoing recovery from the pandemic.

Governmental fund expenditures were $359 million, reflecting an increase of $16 million or 4.5% compared to the prior year. The increase is primarily due to a $14 million increase within the Public Safety program.

General Fund
Revenues
The City’s General Fund revenues totaled $372 million in fiscal year 2024-25, an increase of $61 million or 19.4% from the prior fiscal year.

Sales tax accounts for approximately 21.4% of the General Fund’s direct revenues. Sales tax revenue increased by $17.6 million, or 28.5% compared to the previous year, reaching to $79.3 million. This significant increase was largely attributed to substantial growth in business to business activity during the current fiscal year.

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16 Property tax (ad valorem) stands as the largest revenue source among General Fund revenues. In the fiscal year 2024-25, property tax revenues amounted to $95.9 million, reflecting an increase of $5.2 million, or a

5.8% 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 increases went into effect on January 1, 2022. The City raised the rate from 11.5% to 12.5% in January 2024 with the final one percentage point increase in January 2025, raising the rate to 13.5%. In fiscal year 2024-25, TOT revenues were $27.0 million, an increase of $4.6 million, or 20.8%, compared to fiscal year 2023-24. This growth reflected the impact of both the tax rate increase and the continued recovery from the pandemic.

Licenses, permits, fines and penalties revenues were $12.3 million in business licenses, parking permit, and miscellaneous permit in fiscal year 2024-25, compared to $11.6 million in the previous year. The 6.1% increase was primarily from higher development-related permit activity and the modest fee adjustment.

Intergovernmental revenues were $5.8 million in fiscal year 2024-25, up from $0.9 million in the previous year. The increase of $4.9 million was primarily due to a $2.6 million redistribution from the Hyatt land sale in the Successor Agency fund and an additional $2.0 million in mutual aid reimbursement revenues for Fire Department services.

Charges for services, which excludes building development related activities, totaled $46.0 million in fiscal year 2024-25 compared to $45.7 million in the prior fiscal year, an increase of 0.69%.

Contributions in-lieu of taxes were approximately $38.9 million in fiscal year 2024-25, a $5.8 million increase from the prior fiscal year. The increase is the result of higher consumption and retail rates in Electric Fund.

Interest and rent revenues were $44.2 million in fiscal year 2024-25, an increase of $17.0 million from the prior fiscal year. The increase was primarily attributed to an $11 million rise in Stadium performance rents and higher interest earnings from higher interest rates.

Other revenues totaled $7.0 million in fiscal year 2024-25, an increase of $5.8 million from the prior fiscal year primarily due to a $5.2 million contribution from Stadium in the current fiscal year.

Expenditures
General Fund expenditures totaled $285 million for fiscal year 2024-25, an increase of $18 million or 6.8% from the prior fiscal year total of $267 million. This amount excludes encumbrances, re-appropriations, and building related activities.

Salaries and benefits expenditures were $218 million in fiscal year 2024-25, a $13 million or 6.7% increase from the $205 million spent in the previous fiscal year 2023-24. The increase is primarily attributed to a $5.7 million increase in the police department, a $3.0 million increase in the fire department, and a $3.1 million in finance and public work departments.

Other operating expenditures, encompassing various categories such as materials, services, supplies, internal service fund charges, debt service, and minor capital outlays were $67 million in fiscal year 2024- 25, an increase of $5 million from the prior fiscal year. The increase can be primarily attributed to a $3 million increase in the internal service fund cost allocation and a $2 million increase in materials, service and supplies.

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17 The uses of the other financing sources for fiscal year 2024-25 were $26 million, reflecting a increase of $10 million when compared to the prior fiscal year. This increase can be primarily attributed to a one-time $8.6 million transfer to fund the International Swim Center Project and a $1 million transfer to fund the PeopleSoft upgrade project.

Fund Balance
As of June 30, 2025, total fund balance in the General Fund was $241 million, up $60 million from the fiscal year 2023-24. Table 5A shows the breakdown of various components compared with the prior fiscal year.
2025 2024 Net Change
Nonspendable 8 $ 6 $ 2 $
Restricted 40 32 8
Committed 13 18 (5)
Assigned 17 16 1
Unassigned 163 109 54
Total General Fund Balance 241 $ 181 $ 60 $ Table 5A
General Fund Balance for the Fiscal Year Ended June 30, 2025 (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:

Original Budget Compared to Final Budget
Original Final
Budgeted Budgeted Net
Amount Amount Change
Revenues $ 296 $ 326 $ 30
Expenditures $ 293 $ 298 $ 5
Net other financing sources (uses) $ (16) $ (26) $ (10) General Fund Budget for the Fiscal Year Ended June 30, 2025 Table 5B
(in millions)

Adjustments to the original budget were based on the following:

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18  The $30 million increase in budgeted revenues is attributed to several factors: an $11.5 million mid-year budgetary adjustment in lease revenue, which includes a $7.3 million the Stadium’s performance-based rent settlement from prior fiscal years and a $4.2 million increase in the current year’s Stadium anticipated performance rent, a $6.2 million increase in the other revenue from Stadium per the Deposit and Disbursement Agreement dated June 19, 2013; a $6 million increase in sales tax; a $2 million one-time redistribution of revenue from Successor Agency land sales, a $2 million increase in mutual aid reimbursement for wildland deployments, and a $2 million increase in the charges for services, driven by ambulance services and higher than anticipated revenues from events at the Stadium.
 The increase in budgeted expenditures is primarily due to a $4 million mid-year budget increase in the salary and benefits in the Fire department due to field operations overtime and higher compensatory time payouts, along with a $1 million increase for the public healthcare ambulance transport services.
 The increase in budgeted Other Financing Uses is primarily due to an $8.6 million transfer to the Park and Recreation Department to support the planning and construction of the temporary and permanent International Swimming Center Facility Project, and a $1 million transfer to fund the PeopleSoft upgrade and implementation of procurement contracts and requisitions modules.

Final Budget Versus Actual
Final
Budgeted Actual
Amount Amount Variance
Revenues 326 $ 359 $ 33 $
Expenditures 298 $ 283 $ (15) $
Net other financing sources (uses) (26) $ (26) $ - $ General Fund Final Budget Versus Actual for the Fiscal Year Ended June 30, 2025 Table 5C
(in millions)

The most significant differences between actual and final budgeted amounts are explained as follows:
 The final budgeted revenues resulted in a $33 million positive variance mainly due to a $16 million increase in the property taxes, sales taxes, and transient occupancy taxes, a $6 million increase in the interest and rents, a $4 million increase in the contribution in-lieu of taxes, and a $4 million increase in charges for services.
 Actual expenditures were $15 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.

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19 The SCHS’s revenues were approximately $1.6 million in fiscal year 2024-25, an increase of $608 thousand from the previous year. The growth is primarily driven by a $377 thousand increase in loan interest received from the multi-family developer loans and a $225 thousand increase in interest and rental income.

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 2024-25, the general expenditures were $553 thousand, a decrease of $32 thousand or 5.4% 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 2024-25, the Enterprise Fund net position totaled $2.2 billion, reflecting an increase of $307 million or 15.8% compared to the prior fiscal year. The major contributor to this increase was the Electric Utility Fund, which showed a $270 million increase. The increase in the Electric Utility Fund can be attributed to a $99 million increase in the charges for services and a $40 million increase in the interest revenue and other revenue from developer contributions.

In fiscal year 2024-25, the equity of the joint venture recognized a loss of $11 million, a significant decrease from the $19 million gain recorded in the previous fiscal year. This decrease of $30 million is mostly due to a $34 million decrease in the equity associated with the San Jose Santa Clara Joint Wastewater Treatment Facility project in the Sewer Utility fund, offset by a $4 million increase 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 2024-25 were $24 million, representing an $8 million decrease from the previous fiscal year.

This variance reflects a $3 million increase in interest expense and a one-time $6 million contribution from Stadium to the General Fund.

Electric Utility

This fund accounts for the operation of the City’s electric utility services. Charges for Services revenues were $742 million in fiscal year 2024-25, an increase of $86 million, or 13.3% from fiscal year 23-24. The primary driver for this increase was a 5% rate increase effective July 1, 2024 and increased consumption.

Retail operating expenses reached $638 million in fiscal year 2024-25, a $58 million increase from $580 million in fiscal year 2024-25. The 9.9% increase in the operating expenses were primarily attributed to the high operating cost resulting from increased consumption.

Revenues from wholesale resource operations was $14.6 million in the current fiscal year, a slight increase from the $11.5 million recorded in fiscal year 2023-24. The costs related to wholesale resources purchases were $8 million comparing to $10 million in the prior fiscal year. The decrease in wholesale resource activities in fiscal year 2024-25 was influenced by the lower gas price in the resource market.

Interest revenues was $34 million in fiscal year 2024-25, up from $14 million recorded in fiscal year 2023-

24. This increase is primarily due to a higher interest rate environment. Interest expense was $5.6 million in the current year.

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20 The Electric Utility Fund had a net position of $1,563 million at June 30, 2025, an increase of $270 million or 20.9% from the prior fiscal year. Of this amount, $503 million was net investment in capital assets, $12 million was restricted for contractual obligations, and $1,048 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 $66 million for fiscal year 2024-25 compared to $57 million for the prior fiscal year. Increased water usage and water utility rates increases are the main factors for the revenue variance of $9 million.

Operating expenses were $64 million in fiscal year 2024-25, compared to $58 million in fiscal year 2023-

24. 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 $79 million at June 30, 2025.

Sewer Utility
This fund accounts for the maintenance of the City’s sewer lines and related facilities. Operating revenues of the Sewer Utility were $50 million for fiscal year 2024-25 compared to $45 million in fiscal year 2023-

24. The additional revenue was mainly due to the increase in sewer utility rates. Non-operating revenue was $6.9 million in the current year.

Operating expenses totaled $39 million in fiscal year 2024–25, an increase of $5 million from the prior year. The increase was primarily driven by a $3.5 million rise in the City’s share of wastewater plant operation and maintenance costs.

The Sewer Utility Fund had a net position of $380 million at June 30, 2025. Of this amount, $38 million was net investment in capital assets, $267 million was restricted for joint venture capital projects and $75 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 19.86% of the assets, capital, and operating costs. In fiscal year 2023-24, the City of San Jose reported that a loss of the Utility’s equity in the Regional Wastewater Facility was $15 million (fiscal year 2024-25 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 $9 million, an increase of $1 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 $10 million, an increase of $1 million from fiscal year 2023-24 due to higher resource cost, and higher maintenance cost for an emergency leak repair. The net position at June 30, 2025 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, 2025, the Stadium Authority recorded approximately $83.3 million in operating revenue, $1.4 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 $62 million, decreasing $17.6 million from the prior fiscal year. This decrease is primarily due to lower Stadium Manager expenses, Non-NFL event expenses and Draft

21 public safety costs over threshold. Net position at March 31, 2025 was $182 million, an increase of $49 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 $40.9 million in fiscal year 2024-25, an increase of $1.7 million from the prior fiscal year.

Operating expenses were $39.8 million compared to $37.8 million in FY23-24, mainly due to the increases in the garbage collection, disposal and recycling service costs. The Solid Waste Fund’s net position was $3.8 million at June 30, 2025.

Cemetery

This fund accounts for the Mission City Memorial Park’s operations. Operating revenues for FY24-25 were $1.0 million, an increase of 30% from the prior fiscal year. Operating expenses remained consistent with prior year at $1.2 million. Net position at June 30, 2025, was $4.0 million.

Santa Clara Convention Center

This fund accounts for the operations of the Santa Clara Convention Center. Operating revenues were $18 million in fiscal year 2024-25 compared to $20 million in fiscal year 2023-24. Expenses were $17 million in the fiscal year 2024-25 compared to $19 million in prior fiscal year. The decrease in revenues and operating expenses are directly related to the decreased events at the Convention Center. Net position at June 30, 2025, was $29 million. On November 1, 2019, the City entered into an agreement with Levy Premium Foodservice Limited 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 2024-25 due to the expiration of the operating lease. Operating expenses were $11 thousand, with a net position at June 30, 2025 of $2 million.

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22 CAPITAL ASSETS
At June 30, 2025, the City’s capital assets totaled $687 million in Governmental Activities, and $1.527 billion in Business-Type Activities, net of depreciation. Capital Assets are invested in a broad range of categories, as shown in Table 6.
2025 2024 Net Change
Governmental Activities:

Land 133$ 130$ 3$
Construction in progress 61 59 2 Land improvements 69 60 9 Buildings 218 217 1
Infrastructure 664 646 18 Machinery and equipment 99 89 10 Right-to-use leased Equipment 2 1 1 Right-to-use SBITA 13 13 - Less accumulated depreciation (572) (546) (26) Totals 687$ 669$ 18$
Business-Type Activities:

Land 24$ 19$ 5$
Construction in progress 148 93 55 Buildings 924 922 2
Infrastructure 1,331 1,316 15
Machinery and equipment 34 30 4 Right-to-use leased building 3 3 - Right-to-use SBITA 4 4 - Less accumulated depreciation (941) (889) (52) Totals 1,527$ 1,498$ 29$
Table 6
Capital Assets at June 30, 2025
(in millions)

The increase of $18 million in the Governmental Funds infrastructure was primarily due to $7.5 million in the improvement in street and sidewalk infrastructure and $10.5 million of Contributed Infrastructure from various developers. The $29 million increase in Enterprise Funds infrastructure was mainly due to $11 million in Electric infrastructure improvements, $3.4 million in replacement of the water distribution system, and $500 thousand in sanitary sewer system improvements.

The Biennial Capital Improvement Project Budget for fiscal year 2023-24 and 2024-25 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 2024-25 capital assets.

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23 DEBT ADMINISTRATION
Each of the City’s debt issues is discussed in detail in Note 10 to the financial statements. At June 30, 2025 the City’s debt was comprised of the following:

Balance Balance
Governmental Activity Debt: June 30, 2025 June 30, 2024 Net Change Refunding Certificates of Participation, Series 2013 8$ 9 $ (1) $ Business-Type Debt:

Electric Utility Revenue Bonds, net of unamortized discount 150 27 123 Electric Loan Agreements 76 86 (10) Sewer Utility Loan Agreements 5 6 (1) Sewer Utility Certificates of Participation 2023 35 36 (1) StadCo CFD Advance (1) 27 29 (2) Stadium Funding Trust Loan(1) 193 200 (7) Total Debt 494$ 393 $ 101 $
(1) Stadium Authority's long-term obligations are based on a March 31 fiscal year end.

Table 7
Outstanding Debt at June 30, 2025
(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.

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.

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Basic Financial Statements

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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.

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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 483,677,498$ 998,667,908$ 1,482,345,406$ Investments with fiscal agent 18,993 147,070,441 147,089,434 Receivables (net of allowance for uncollectible):

Accounts 16,446,873 207,472,963 223,919,836 Interest 11,851,291 6,487,317 18,338,608 Intergovernmental 17,900,299 - 17,900,299 Leases receivable (Note 4) 1,400,066 12,529,804 13,929,870 Derivative financial instruments (Note 10D) - 2,871,435 2,871,435 Materials, supplies and prepaids 6,136,523 26,762,778 32,899,301 Land held for development (Note 2H) 1,703,500 - 1,703,500 Total Current Assets 539,135,043 1,401,862,646 1,940,997,689 Noncurrent Assets
Restricted cash (Note 7) 40,198,370 107,364,021 147,562,391 Investment with fiscal agent (Note 7) 716,085 11,537,926 12,254,011 Deposits (Note 7) - 7,621,750 7,621,750 Leases receivable, noncurrent (Note 4) 252,965,791 572,925,727 825,891,518 Internal balances (Note 8C) (7,470,150) 7,272,896 (197,254) Long term loans, net 134,129,457 - 134,129,457 Capital assets (Note 9):

Land and construction in progress 193,409,805 172,640,238 366,050,043 Capital assets being depreciated, net 494,052,567 1,354,786,943 1,848,839,510 Investment in joint ventures (Note 12) 5,287,765 331,003,182 336,290,947 Other 22,680 2,263,947 2,286,627 Total Noncurrent Assets 1,113,312,371 2,567,416,630 3,680,729,001 Total Assets 1,652,447,414 3,969,279,276 5,621,726,690

DEFERRED OUTFLOWS OF RESOURCES
Derivative instruments (Note 10D) - 1,098,675 1,098,675 Refunding of debt - 3,616,269 3,616,269 OPEB related items (Note 16) 1,663,649 613,787 2,277,436 Pension related items (Note 13) 108,649,531 24,852,655 133,502,186 Total Deferred Outflows of Resources 110,313,180 30,181,386 140,494,566

CITY OF SANTA CLARA

STATEMENT OF NET POSITION
June 30, 2025

Statement of Net Position
Draft

See accompanying notes to basic financial statements
29 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current Liabilities
Accrued liabilities 42,978,731 86,062,275 129,041,006 Deposits 5,094,824 - 5,094,824 Interest payable 256,706 9,326,588 9,583,294 Accrued compensated absences (Note 2L) 10,571,743 4,028,935 14,600,678 Unearned revenue, current portion 1,768,322 23,213,250 24,981,572 Landfill closure liability (Note 11) - 812,000 812,000 Derivative financial instruments (Note 10D) - 1,098,675 1,098,675 Current portion of lease obligation (Note 10H) 89,127 240,824 329,951 Current portion of SBITA (Note 10I) 2,049,881 503,819 2,553,700 Long-term debt due within one year (Note 10) 1,120,000 24,697,559 25,817,559 Total Current Liabilities 63,929,334 149,983,925 213,913,259 Noncurrent Liabilities
Long-term portion estimated claims (Note 19) 24,527,000 - 24,527,000 Accrued compensated absences (Note 2L) 20,007,231 7,623,448 27,630,679 Landfill closure liabilities (Note 11) - 6,645,136 6,645,136 Unearned revenue 4,984,044 401,565,885 406,549,929 Long-term lease obligation (Note 10H) 1,424,882 - 1,424,882 Long-term SBITA obligation (Note 10I) 5,516,040 1,991,616 7,507,656 Long-term debt due after one year (Note 10) 7,216,503 461,582,110 468,798,613 Net OPEB liability due after one year (Note 16) 25,430,842 9,382,316 34,813,158 Net pension liability due after one year (Note 13) 526,827,947 142,157,350 668,985,297 Total Noncurrent Liabilities 615,934,489 1,030,947,861 1,646,882,350 Total Liabilities 679,863,823 1,180,931,786 1,860,795,609

DEFERRED INFLOWS OF RESOURCES
Derivative instruments (Note 10D) - 2,871,435 2,871,435 Refunding of debt - 768,263 768,263 Leases related (Note 4) 246,106,700 564,390,656 810,497,356 OPEB related items (Note 16) 1,602,691 591,293 2,193,984 Pension related items (Note 13) 1,066,115 187,345 1,253,460 Total Deferred Inflows of Resources 248,775,506 568,808,992 817,584,498 NET POSITION (Note 18)
Net investment in capital assets 670,045,939 1,087,705,430 1,757,751,369 Restricted for:

Capital projects and other agreements 163,995,559 392,093,941 556,089,500 Debt service 702,777 - 702,777 Housing activities 159,659,545 - 159,659,545 Community development 40,806,146 - 40,806,146 Transportation 4,185,702 - 4,185,702 Pension rate stabilization program 37,546,639 - 37,546,639 Maintenance 2,380,868 - 2,380,868 Other purposes 8,346,236 - 8,346,236 Total Restricted Net Position 417,623,472 392,093,941 809,717,413 Unrestricted Net Position (253,548,147) 769,920,513 516,372,366 Total Net Position 834,121,265$ 2,249,719,884$ 3,083,841,149$

CITY OF SANTA CLARA

STATEMENT OF NET POSITION
June 30, 2025
Draft

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 41,153,610$ (5,709,507)$ 18,455,541$ 2,830,035$ 187,985$ City Clerk 2,038,375 (482,833) 47,856 - - City Attorney 2,950,302 (450,644) - - - Human Resources 4,298,887 (1,802,576) - - - Finance 18,587,973 (7,773,608) 2,768,170 - - Public Works 50,006,423 (2,511,797) 8,692,835 6,066,163 20,346,722 Parks and Recreation 27,503,837 - 3,948,677 2,715,300 - Public Safety:

Police 101,064,768 (40,572) 1,008,762 2,270,776 - Fire 84,243,367 - 9,622,140 6,641,621 - Planning and Inspection 20,009,318 - 20,093,748 199,093 - Library 13,757,368 - 9,477 256,099 - Interest on long term debt 382,249 - - - - Total Governmental Activities 365,996,477 (18,771,537) 64,647,206 20,979,087 20,534,707 Business-type Activities:

Utilities:

Electric 633,427,608 9,427,837 866,391,530 - - Water 60,954,319 3,043,221 66,475,472 - - Sewer 53,801,740 1,519,002 57,414,389 - - Water Recycling 9,970,110 88,395 9,949,771 - - Solid Waste 37,601,423 2,094,247 40,950,266 - - Cemetery 1,089,040 135,363 1,010,289 - - Sports and Open Space Authority 10,653 - - - - Santa Clara Convention Center 16,943,517 423,494 18,284,460 - - Santa Clara Stadium Authority 77,602,688 2,039,978 83,338,250 - 3,408,575 Total Business-type Activities 891,401,098 18,771,537 1,143,814,427 - 3,408,575 Total 1,257,397,575$ - 1,208,461,633$ 20,979,087$ 23,943,282$ 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 101 implementation (Note 18E)
Accounting policy change-unavailable revenues (Note 18E) Error correction (Note 6F and 18E)
Net Position - beginning, as restated
Net Position - ending
Program Revenues

STATEMENT OF ACTIVITIES

CITY OF SANTA CLARA
For the year ended June 30, 2025

Statement of Activities
Draft

See accompanying notes to basic financial statements
31 Governmental Business-Type
Activities Activities Total
(13,970,542)$ -$ (13,970,542)$ (1,507,686) - (1,507,686) (2,499,658) - (2,499,658) (2,496,311) - (2,496,311) (8,046,195) - (8,046,195) (12,388,906) - (12,388,906) (20,839,860) - (20,839,860) (97,744,658) - (97,744,658) (67,979,606) - (67,979,606) 283,523 - 283,523 (13,491,792) - (13,491,792) (382,249) - (382,249) (241,063,940) - (241,063,940) - 223,536,085 223,536,085 - 2,477,932 2,477,932 - 2,093,647 2,093,647 - (108,734) (108,734) - 1,254,596 1,254,596 - (214,114) (214,114) - (10,653) (10,653) - 917,449 917,449 - 7,104,159 7,104,159 - 237,050,367 237,050,367 (241,063,940) 237,050,367 (4,013,573)
79,352,441 - 79,352,441 95,318,926 - 95,318,926 26,992,989 - 26,992,989 7,407,028 - 7,407,028 38,881,781 - 38,881,781 26,226,477 57,816,726 84,043,203
7,432,664 16,750,981 24,183,645
- 3,612,641 3,612,641 23,091,255 - 23,091,255 - 7,399 7,399 25,547,170 - 25,547,170 5,051,497 (5,051,497) -
335,302,228 73,136,250 408,438,478
94,238,288 310,186,617 404,424,905
721,823,971 1,919,078,716 2,640,902,687
(7,124,240) (2,665,444) (9,789,684) 25,183,246 - 25,183,246 - 23,119,995 23,119,995 739,882,977 1,939,533,267 2,679,416,244
834,121,265$ 2,249,719,884 $ 3,083,841,149 $
Net (Expense) Revenue and Changes in Net Position

CITY OF SANTA CLARA

STATEMENT OF ACTIVITIES
For the year ended June 30, 2025
Draft

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Draft

CITY OF SANTA CLARA

COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the year ended June 30, 2025

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 2024-25. 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.

Draft

See accompanying notes to basic financial statements
34 General Santa Clara
Fund Housing Successor
ASSETS
Cash and investments (Note 7):

Pooled cash and investments 185,828,042$ 5,295,129$ Investments with fiscal agent - current - - Restricted cash 37,546,639 -
Receivables (net of allowance for uncollectibles):

Accounts 13,863,720 -
Interest 11,851,291 -
Loans 4,434,698 103,924,084
Intergovernmental 14,539,148 -
Due from other funds (Note 8B) 118,978 - Materials, supplies and prepaids 1,491,558 - Land held for development (Note 2H) - 1,703,500 Investments with fiscal agent - noncurrent (Note 7) - - Leases Receivable (Note 4) 254,365,857 - Other 22,680 -
Total Assets 524,062,611$ 110,922,713$

LIABILITIES
Accrued liabilities 25,934,959$ 140,464$ Deposits 5,094,824 -
Unearned revenue 1,407,834 5,064,044 Total Liabilities 32,437,617 5,204,508

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Lease revenues (Note 4) 246,106,700 - Unavailable revenue - Loans 4,434,698 98,839,215 Total Deferred Inflows of Resources 250,541,398 98,839,215 FUND BALANCES (Note 18)
Nonspendable 8,296,261 -
Restricted 39,816,691 6,878,990
Committed 12,775,977 -
Assigned 16,979,509 -
Unassigned 163,215,158 -
Total Fund Balances 241,083,596 6,878,990 Total Liabilities, Deferred Inflows of Resources
and Fund Balances 524,062,611$ 110,922,713$

CITY OF SANTA CLARA

GOVERNMENTAL FUNDS

BALANCE SHEET
June 30, 2025

Balance Sheet
Draft

See accompanying notes to basic financial statements
35 Non-Major Total
Governmental Funds Governmental Funds
243,135,774$ 434,258,945$
18,993 18,993
2,651,731 40,198,370
529,405 14,393,125
- 11,851,291 83,274,882 191,633,664
3,361,151 17,900,299
- 118,978
54,578 1,546,136
- 1,703,500 716,085 716,085
- 254,365,857 - 22,680
333,742,599$ 968,727,923$
8,283,253$ 34,358,676$
- 5,094,824 280,488 6,752,366
8,563,741 46,205,866
- 246,106,700 83,274,882 186,548,795
83,274,882 432,655,495
- 8,296,261 139,935,846 186,631,527
101,968,130 114,744,107
- 16,979,509 - 163,215,158 241,903,976 489,866,562
333,742,599$ 968,727,923$

BALANCE SHEET
June 30, 2025

CITY OF SANTA CLARA

GOVERNMENTAL FUNDS

Draft

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Draft

See accompanying notes to basic financial statements
37 TOTAL GOVERNMENTAL FUND BALANCE 489,866,562$
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) (10,229,249) Interest payable (118,662)

CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and, therefore, are not reported in the Governmental Funds. 678,091,087 Right to use leases assets and SBITA assets used in governmental activities are not financial resources and therefore are not reported in the funds. 9,371,285 INVESTMENT IN NON-BUSINESS-TYPE JOINT VENTURE 5,287,765

DEFERRED OUTFLOWS OF RESOURCES
OPEB related (excluding Internal Service Funds) 1,621,077 Pension related (excluding Internal Service Funds) 107,020,386

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 49,418,553
Accounts receivable 2,053,748
Materials, supplies and prepaid 4,590,387
Deferred outflows OPEB related items 42,572
Deferred outflows pension related items 1,629,145
Accrued liabilities, including short-term portion of estimated claims (8,620,056) Long-term portion of estimated claims (24,527,000)
Compensated absences - current (342,494)
Compensated absences - long-term (648,334)
Internal balances (7,589,128)
Lease obligations, including interest payable (1,532,375) SBITA obligations, including interest payable (621,014) Net OPEB liability (650,782)
Net pension liability (8,808,149)
Deferred inflows OPEB related items (41,013)
Deferred inflows pension related items (11,608)

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 (10,376,219) Long-term debt (8,336,503)
Long-term liability associated with SBITA agreements (excluding Internal Service Funds) (7,064,586) Non-current portion of accrued compensated absences
(excluding Internal Service Funds) (19,358,897)
Net OPEB liability (excluding Internal Service Funds) (24,780,060) Net pension liability (excluding Internal Service Funds) (518,019,796)

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. 139,420,808 (1,561,678)
(1,054,507)
NET POSITION OF GOVERNMENTAL ACTIVITIES 834,121,265$
June 30, 2025

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)

Draft

See accompanying notes to basic financial statements
38 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position General Santa Clara
Fund Housing Successor

REVENUES
Taxes:

Sales 79,352,441$ -$
Ad valorem 95,931,933 -
Transient occupancy 26,992,989 -
Other 7,018,562 -
Licenses, permits, fines, and penalties 12,320,410 - Intergovernmental 5,804,185 -
Charges for services 46,030,814 -
Contributions in-lieu of taxes 38,881,781 - Interest and rents 44,232,968 302,460 Net increase (decrease) in the fair
value of investments 7,432,664 -
Other 7,001,166 1,260,917
Total Revenues 370,999,913 1,563,377

EXPENDITURES
Current:

General Administration 28,658,142 553,194 City Clerk 2,154,922 -
City Attorney 3,128,458 -
Human Resources 4,380,656 -
Finance 21,222,709 -
Public Works 25,698,149 -
Parks and Recreation 21,220,135 -
Public Safety:

Police 90,870,567 -
Fire 69,436,548 -
Planning and Inspection 4,364,063 - Library 11,803,441 -
Capital outlay 670,261 -
Debt service (Note 10):

Principal payments 1,506,681 -
Interest and fiscal fees 103,345 - Total Expenditures 285,218,077 553,194

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 85,781,836 1,010,183

OTHER FINANCING SOURCES (USES)
Subscription Based IT Arragement Liabilities (Note 10I) 586,348 - Transfers in (Note 8A) 3,660,769 - Transfers (out) (Note 8A) (30,264,809) - Total Other Financing Sources (Uses) (26,017,692) - NET CHANGE IN FUND BALANCE 59,764,144 1,010,183 Fund balances - beginning 181,319,452 5,868,807 Fund balances - ending 241,083,596$ 6,878,990 $

AND CHANGES IN FUND BALANCES

STATEMENT OF REVENUES, EXPENDITURES
For the year ended June 30, 2025

CITY OF SANTA CLARA

GOVERNMENTAL FUNDS

Statement of Revenues, Expenditures, and Changes in Fund Balances

Draft

See accompanying notes to basic financial statements
39 Non-Major Total
Governmental Funds Governmental Funds
-$ 79,352,441$ - 95,931,933 - 26,992,989 388,466 7,407,028
9,356,968 21,677,378
26,146,765 31,950,950
14,696,738 60,727,552
- 38,881,781 5,647,286 50,182,714
- 7,432,664 10,686,030 18,948,113
66,922,253 439,485,543
7,581,915 36,793,251
- 2,154,922 - 3,128,458 - 4,380,656 - 21,222,709 8,419,003 34,117,152
2,080,059 23,300,194
1,102,547 91,973,114
9,581,208 79,017,756
16,026,244 20,390,307
206,072 12,009,513
21,089,886 21,760,147
1,204,699 2,711,380
372,100 475,445
67,663,733 353,435,004
(741,480) 86,050,539
- 586,348 42,088,339 45,749,108
(12,827,545) (43,092,354)
29,260,794 3,243,102
28,519,314 89,293,641
213,384,662 400,572,921
241,903,976$ 489,866,562$
For the year ended June 30, 2025

CITY OF SANTA CLARA

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

Draft

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Draft

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 89,293,641$ 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 (1,836,950)

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 21,161,268 Depreciation expense is deducted from the fund balance
(Depreciation expense is net of Internal Service Fund depreciation of $3,125,515 which has already been allocated to service funds.) ( 22,543,516)
Retirements of capital assets (net of Internal Service Fund retirement of $6,503) (447) 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. 13,068,442
JOINT VENTURES - PROFIT FROM EQUITY (213,789)

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 (586,348) 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 1,085,000 Amortization of bond premium 108,600

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 (340,671)
Non-current portion of accrued compensated absences 624,136 Interest payable 14,578
Unavailable revenue 1,942,901
Lease related expense 225
SBITA related expense 734,928
OPEB related expense 953,074
Pension related expense (14,850,414)

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 6,143,651 Change in Net Position of Internal Service Funds reported with Business-Type Activities (520,021) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 94,238,288$ For the year ended June 30, 2025

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES

Draft

Reconciliation of the Governmental Funds Statement o f Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities This page intentionally left blank
Draft

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 2024-25.

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 self- supporting 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 National Football League (NFL)’s San Francisco 49ers). In November 2012, the Santa Clara Stadium Authority changed its fiscal year ending date from June 30 th to March 31 st to conform
with the fiscal year of Stadium Funding Trust.

Draft

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 817,007,119$ 25,031,021$ 112,195,033$ Investments with fiscal agent 130,517,424 - - Receivables (net of allowance for uncollectible):

Accounts 154,525,464 10,898,187 6,705,082 Interest 5,717,203 112,402 640,328 Other - - - Leases receivable (Note 4) 271,306 34,559 34,559 Derivative financial instrument (Note 10D) 2,871,435 - - Due from other funds (Note 8B) 4,773,495 1,309,352 1,220,074 Materials, supplies and prepaids 25,172,910 1,589,868 - Total current assets 1,140,856,356 38,975,389 120,795,076 Noncurrent assets:

Restricted cash (Note 7) 11,792,344 2,558,750 1,124,084 Investment with fiscal agent (Note 7) - - 1,691 Deposits (Note 7) 7,621,750 - - Leases receivable, noncurrent (Note 4) 1,581,619 621,495 621,495 Capital assets (Note 9):

Land 19,879,593 661,268 725,328
Construction in progress 138,921,943 133,756 15,103 Buildings, infrastructure and land improvements 1,158,113,200 115,302,788 68,845,569 Equipment 10,745,377 4,449,370 5,462,089 Right-to-use leased assets 2,916,623 - - Right-to-use SBITA 3,837,038 - - 1,334,413,774 120,547,182 75,048,089
Less accumulated depreciation 605,432,919 56,678,418 31,970,980 Net capital assets 728,980,855 63,868,764 43,077,109 Investment in joint ventures (Note 12) 65,322,413 - 265,680,769 Other assets - - - Total noncurrent assets 815,298,981 67,049,009 310,505,148 Total assets 1,956,155,337 106,024,398 431,300,224

DEFERRED OUTFLOWS OF RESOURCES
Derivative instruments (Note 10D) 1,098,675 - - Refunding of debt 3,616,269 - - OPEB related items (Note 16) 440,104 96,943 46,064 Pension related items (Note 13) 19,295,396 2,887,506 1,493,481 Total deferred outflows of resources 24,450,444 2,984,449 1,539,545

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
June 30, 2025
Business-type Activities-Enterprise Funds

PROPRIETARY FUNDS
Statement of Net Position

Draft

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, 2025)
restated (Note 6) Funds TOTAL (Note 2B)
6,747,449$ 7,977,439$ 28,740,498$ 997,698,559$ 50,387,902$ - 16,553,017 - 147,070,441 - 1,666,256 23,280,276 10,397,696 207,472,961 2,053,748 17,384 - - 6,487,317 - - - - - - - 12,189,380 - 12,529,804 - - - - 2,871,435 - - - 286,207 7,589,128 46,059 - - - 26,762,778 4,590,387 8,431,089 60,000,112 39,424,401 1,408,482,423 57,078,096 197,081 89,150,424 2,541,339 107,364,022 - - 11,536,235 - 11,537,926 - - - - 7,621,750 - - 570,101,118 - 572,925,727 - - - 3,092,872 24,359,061 - - 7,530,524 1,679,851 148,281,177 - 1,257,070 830,191,432 81,854,015 2,255,564,074 - - 9,852,476 3,006,588 33,515,900 53,111,318 - - - 2,916,623 2,234,821 - - - 3,837,038 2,397,211 1,257,070 847,574,432 89,633,326 2,468,473,873 57,743,350 234,778 180,594,523 66,135,074 941,046,692 36,218,743 1,022,292 666,979,909 23,498,252 1,527,427,181 21,524,607 - - - 331,003,182 - - 2,263,947 - 2,263,947 - 1,219,373 1,340,031,633 26,039,591 2,560,143,735 21,524,607 9,650,462 1,400,031,745 65,463,992 3,968,626,158 78,602,703 - - - 1,098,675 - - - - 3,616,269 - 6,773 - 23,903 613,787 42,572 309,070 - 867,202 24,852,655 1,629,145 315,843 - 891,105 30,181,386 1,671,717 (continued)
Business-type Activities-Enterprise Funds

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
June 30, 2025

Draft

See accompanying notes to basic financial statements
46 Electric Water Sewer
Utility Utility Utility

LIABILITIES
Current liabilities:

Accrued liabilities 56,862,758 6,517,429 64,697 Interest payable 3,801,132 - 709,047 Unearned revenue 915,150 4,754 4,754 Due to other funds (Note 8B) - - - Accrued compensated absences (Note 2L) 3,414,541 365,313 140,904 Current portion of landfill closure liability (Note 11) - - - Current portion of long-term debt (Note 10) 15,260,000 - 1,599,465 Current portion derivative financial instruments (Note 10D) 1,098,675 - - Current portion of leases obligation (Note 10H) 240,824 - - Current portion of SBITA (Note 10I) 503,819 - - Total current liabilities 82,096,899 6,887,496 2,518,867 Noncurrent liabilities:

Unearned revenue - - - Long-term portion estimated claims - - - Long-term compensated absences (Note 2L) 6,459,948 691,237 267,052 Landfill closure liability (Note 11) - - - Long-term debt (Note 10) 210,996,153 - 38,814,787 Long-term leases obligation (Note 10H) - - - Long-term SBITA (Nte 10I) 1,991,616 - - Net OPEB liability (Note 16) 6,727,406 1,481,870 704,128 Net pension liability (Note 13) 103,868,311 19,866,897 9,901,579 Total noncurrent liabilities 330,043,434 22,040,004 49,687,546 Total liabilities 412,140,333 28,927,500 52,206,413

DEFERRED INFLOWS OF RESOURCES
Derivative instruments (Note 10D) 2,871,435 - - Refunding of debt 768,263 - - Leases related (Note 4) 1,712,000 563,039 563,039 OPEB related items (Note 16) 423,976 93,390 44,376 Pension related items (Note 13) 136,885 26,182 13,049 Total deferred inflows of resources 5,912,559 682,611 620,464 NET POSITION (Note 18)
Net investment in capital assets 502,836,449 63,868,764 37,824,835 Restricted for capital projects and other agreements 11,792,344 2,255,660 266,804,853 Unrestricted 1,047,924,096 13,274,312 75,383,204 Total net position 1,562,552,889$ 79,398,736$ 380,012,892$ 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, 2025
Business-type Activities-Enterprise Funds
Draft

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, 2025)
restated (Note 6) Funds TOTAL (Note 2B)
1,910,342 13,939,371 6,767,677 86,062,274 8,620,056 - 4,816,409 - 9,326,588 22,051 - 16,394,288 5,894,304 23,213,250 - - 316,232 - 316,232 7,635,187 - - 108,177 4,028,935 342,494 - - 812,000 812,000 - - 7,838,094 - 24,697,559 - - - - 1,098,675 - - - - 240,824 89,127 - - - 503,819 617,329 1,910,342 43,304,394 13,582,158 150,300,156 17,326,244 - 401,565,885 - 401,565,885 - - - - - 24,527,000 - - 205,211 7,623,448 648,334 - - 6,645,136 6,645,136 - - 211,771,170 - 461,582,110 - - - - - 1,424,882 - - - 1,991,616 - 103,515 - 365,397 9,382,316 650,782 1,736,893 - 6,783,670 142,157,350 8,808,149 1,840,408 613,337,055 13,999,414 1,030,947,861 36,059,147 3,750,750 656,641,449 27,581,572 1,181,248,017 53,385,391 - - - 2,871,435 - - - - 768,263 - - 561,552,578 - 564,390,656 - 6,523 - 23,028 591,293 41,013 2,289 - 8,940 187,345 11,608 8,812 561,552,578 31,968 568,808,992 52,621 1,022,292 458,654,838 23,498,252 1,087,705,430 19,393,269 197,081 105,619,279 5,424,724 392,093,941 - 4,987,370 (382,436,399) 9,818,581 768,951,164 7,443,139 6,206,743$ 181,837,718$ 38,741,557$ 2,248,750,535 26,836,408$ 969,349
2,249,719,884$

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
June 30, 2025
Business-type Activities-Enterprise Funds

Draft

See accompanying notes to basic financial statements
48 Electric Water Sewer
Utility Utility Utility
Operating revenues:

Charges for services 742,314,357$ 66,063,842$ 50,497,929$ Rents, royalties and licensing - - - Insurance refunds and other - - - Mandated program receipts 22,625,543 - - Renewable energy credits 2,718,750 - - Wholesale resource sales 14,612,434 - - Other 25,716,855 - - Total operating revenues 807,987,939 66,063,842 50,497,929 Operating expenses:

Salaries and benefits 63,027,103 7,664,873 4,134,470 Materials, services and supplies 531,252,775 54,456,743 33,296,793 General and administrative - - - Mandated program disbursements 5,439,689 - - Wholesale resources purchases 8,512,008 - - Amortization- Right to use assets 1,175,506 - - Depreciation 28,122,466 1,981,045 1,410,160 Total operating expenses 637,529,547 64,102,661 38,841,423 Operating income (loss) 170,458,392 1,961,181 11,656,506 Nonoperating revenues (expenses):

Interest revenue 33,984,491 761,169 3,508,564 Net change in the fair value of investments 14,315,051 429,069 1,951,816 Rents and royalties 3,425,438 50,814 50,814 Other revenue 54,978,153 360,816 6,865,645 Interest expense (5,610,150) - (1,673,333) Other expense - - (2,500) Equity in income (losses) of joint ventures 3,612,641 - (14,800,567) Gain (loss) on retirement of assets 7,399 - - Total nonoperating revenues (expenses) 104,713,023 1,601,868 (4,099,561) Income (loss) before
contributions and transfers 275,171,415 3,563,049 7,556,945 Contributions - - - Transfers in (Note 8A) 559,815 - 35,653 Transfers (out) (Note 8A) (3,557,502) (760,477) (2,638,320) Change in net position 272,173,728 2,802,572 4,954,278 Total net position - beginning 1,292,855,590 76,706,248 375,113,044 GASB 101 implementation (Note 18E) (2,476,429) (110,084) (54,430) Error Correction - SCSA SBL (Note 6F) - - - Total net position - beginning as adjusted (Note 18E) 1,290,379,161 76,596,164 375,058,614 Total net position - ending 1,562,552,889$ 79,398,736$ 380,012,892$ 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, 2025
Business-type Activities-Enterprise Funds

Statement of Revenues, Expenses, and Changes in Fund Net Position Draft

See accompanying notes to basic financial statements
49 Water Santa Clara Non-Major
Recycling Stadium Authority Enterprise Internal Service Utility (as of March 31, 2025)
restated (Note 6) Funds Total Funds
9,445,774$ 41,060,384$ 60,006,704$ 969,388,990$ 43,505,340$ - 42,277,866 - 42,277,866 - - - - - 3,388,032 - - - 22,625,543 - - - - 2,718,750 - - - - 14,612,434 - - - 224,158 25,941,013 - 9,445,774 83,338,250 60,230,862 1,077,564,596 46,893,372 948,111 - 2,524,095 78,298,652 8,670,843 9,087,515 42,185,615 54,397,192 724,676,633 14,003,851 - 2,286,484 - 2,286,484 18,016,934 - - - 5,439,689 - - - - 8,512,008 - - - - 1,175,506 618,837 25,141 17,767,308 1,507,756 50,813,876 3,125,515 10,060,767 62,239,407 58,429,043 871,202,848 44,435,980 (614,993) 21,098,843 1,801,819 206,361,748 2,457,392 107,409 19,000,112 454,981 57,816,726 - 55,045 - - 16,750,981 - - - 14,153 3,541,219 - 503,997 - - 62,708,611 1,361,031 - (11,237,803) - (18,521,286) (63,012) - (6,165,456) - (6,167,956) - - - - (11,187,926) - - - - 7,399 (6,503) 666,451 1,596,853 469,134 104,947,768 1,291,516 51,458 22,695,696 2,270,953 311,309,516 3,748,908 - 3,408,575 - 3,408,575 - - - 1,367,305 1,962,773 2,593,072 (6,562) - (51,407) (7,014,268) (198,329) 44,896 26,104,271 3,586,851 309,666,596 6,143,651 6,161,019 132,613,452 35,180,035 1,918,629,388 20,890,766 828 - (25,329) (2,665,444) (198,009) - 23,119,995 - 23,119,995 - 6,161,847 155,733,447 35,154,706 1,939,083,939 20,692,757 6,206,743$ 181,837,718$ 38,741,557$ 2,248,750,535$ 26,836,408$ 520,021
310,186,617$

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
For the year ended June 30, 2025
Business-type Activities-Enterprise Funds

Draft

See accompanying notes to basic financial statements
50 Electric Water Sewer
Utility Utility Utility

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 739,570,602$ 64,834,942$ 49,794,316$ Payments to suppliers (530,304,443) (55,133,936) (33,358,869) Payments to employees for salaries and benefits (61,741,071) (7,226,960) (3,967,912) Internal activity - payments to other funds - - - Claims paid - - - Rents, royalties and licenses received 3,435,723 60,929 56,175 Other receipts (payments) 67,134,490 32,794 6,700,313 Renewable energy credits 2,718,750 - - Wholesale resource sales 14,612,434 - - Wholesale resources purchases (8,512,008) - - Resource trading escrow deposit 2,743,207 - - Receipts from JPA 3,500,000 - - Charges for joint project contributions - - (8,108,204) Net cash provided (used) by operating activities 233,157,684 2,567,769 11,115,819

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
(Increase) in due from other funds (756,300) - (93,687) Decrease in due from other funds - 312,487 - Increase in due to other funds - - - (Decrease) in due to other funds - - - Distribution to the City - - - Deposits to (withdraws from) pension rate stabilization fund 1,726,470 328,022 165,332 Transfers in 559,815 - 35,653 Transfers (out) (3,557,502) (760,477) (2,638,320) Cash Flows from Noncapital Financing Activities (2,027,517) (119,968) (2,531,022)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Contribution from Community Facilities District - - - Acquisition and construction of capital assets, net (63,983,783) (3,704,821) (475,519) Proceeds from sale of assets 7,399 - - Proceeds from debt 112,175,000 - - Premium on issuance of debt 18,410,113 - - Cost of issuance (576,116) - (2,500) Principal payments on capital debt (16,651,214) - (1,546,995) Interest paid on capital debt (3,239,867) - (1,726,802) Cash Flows from Capital and Related
Financing Activities 46,141,532 (3,704,821) (3,751,816)

CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease in the fair value of investments 14,315,051 429,069 1,951,816 Interest and dividends 32,026,705 766,307 3,417,003 Fiscal agent investment sales 19,183,798 - - Fiscal agent investment purchases (133,104,338) - - Cash Flows from Investing Activities (67,578,784) 1,195,376 5,368,819 For the year ended June 30, 2025
Business-type Activities-Enterprise Funds

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS

Statement of Cash Flows
Draft

See accompanying notes to basic financial statements
51 Water Santa Clara Non-Major
Recycling Stadium Authority Enterprise Internal Service Utility (as of March 31, 2025) Funds Totals Funds
9,377,229$ 37,572,953$ 57,401,992$ 958,552,034$ 44,698,974$ (8,778,807) (54,111,810) (51,817,706) (733,505,571) (15,449,155) (940,827) - (2,441,884) (76,318,654) (8,544,014) - - - - (355,416) - - - - (17,490,105) - 40,930,472 14,153 44,497,452 - 475,039 - 221,552 74,564,188 3,402,047 - - - 2,718,750 - - - - 14,612,434 - - - - (8,512,008) - - - - 2,743,207 - - - - 3,500,000 - - - - (8,108,204) - 132,634 24,391,615 3,378,107 274,743,628 6,262,331 - - (20,284) (870,271) (4,846) - - - 312,487 - - - - - 562,631 - (156,898) - (156,898) - - (6,165,456) - (6,165,456) - 28,958 - - 2,248,782 - - - 1,367,305 1,962,773 2,593,072 (6,562) - (51,407) (7,014,268) (198,329) 22,396 (6,322,354) 1,295,614 (9,682,851) 2,952,528 - 3,363,652 - 3,363,652 - - (6,236,653) (1,878,494) (76,279,270) (9,873,674) - - - 7,399 - - - - 112,175,000 - - - - 18,410,113 - - - - (578,616) - - (9,058,562) - (27,256,771) (699,769) - (11,420,300) - (16,386,969) (48,267) - (23,351,863) (1,878,494) 13,454,538 (10,621,710) 55,045 - - 16,750,981 - 106,335 5,995,058 454,981 42,766,389 - - (20,296,366) - (1,112,568) - - 19,653,192 - (113,451,146) - 161,380 5,351,884 454,981 (55,046,344) - (continued)
Business-type Activities-Enterprise Funds

STATEMENT OF CASH FLOWS
For the year ended June 30, 2025

CITY OF SANTA CLARA

PROPRIETARY FUNDS

Draft

See accompanying notes to basic financial statements
52 Electric Water Sewer
Utility Utility Utility
Net increase (decrease) in cash and cash
equivalents 209,692,915 (61,644) 10,201,800 Cash and cash equivalents at beginning of period 619,106,548 27,651,415 103,117,317 Cash and cash equivalents at end of period 828,799,463$ 27,589,771$ 113,319,117$ Cash and cash equivalents:

Pooled cash and investments 817,007,119$ 25,031,021$ 112,195,033$ Restricted cash 11,792,344 2,558,750 1,124,084 Total cash and cash equivalents 828,799,463$ 27,589,771$ 113,319,117$ Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating income (loss) 170,458,392$ 1,961,181$ 11,656,506$ Joint venture income 3,500,000 - - Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
(Decrease) Increase in lease and SBITA obligation (23,287) - - (Decrease) Increase in due to OPEB system (258,745) (56,995) (27,081) (Decrease) Increase in due to retirement system 1,057,820 446,819 192,259 Depreciation 29,297,972 1,981,045 1,410,160 Change in assets and liabilities:

Receivables, net (31,578,847) (1,219,810) (708,367) Inventory (5,806,322) 106,085 -
Restricted cash (1,726,470) (328,022) (165,332) Accrued liabilities 6,603,416 (792,366) (62,076) Long-term portion estimated claims - - - Compensated absences 486,957 48,089 1,380 Unearned revenue - 4,754 4,754 Other receipts 58,403,591 416,989 6,921,820 Other expenses - - - Renewable energy credits - - - Wholesale resources sales - - - Wholesale resources purchases - - - Wholesale trading escrow deposit 2,743,207 - - Charges for joint project contributions - - (8,108,204) Net cash provided (used) by operating activities 233,157,684$ 2,567,769$ 11,115,819$ NONCASH TRANSACTIONS:

Joint Ventures
Nonoperating income (loss) 3,612,641$ -$ (14,800,567)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ For the year ended June 30, 2025
Business-type Activities-Enterprise Funds

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
Addition of Leased Assets
Issuance of Leased Liabilities
Capital Contribution

Draft

See accompanying notes to basic financial statements
53 Water Santa Clara Non-Major
Recycling Stadium Authority Enterprise Internal Service Utility (as of March 31, 2025) Funds Totals Funds
316,410 69,282 3,250,208 223,468,971 (1,406,851) 6,628,120 97,058,581 28,031,629 881,593,610 51,794,753 6,944,530$ 97,127,863$ 31,281,837$ 1,105,062,581$ 50,387,902$ 6,747,449$ 7,977,439$ 28,740,498$ 997,698,559$ 50,387,902$ 197,081 89,150,424 2,541,339 107,364,022 - 6,944,530$ 97,127,863$ 31,281,837$ 1,105,062,581$ 50,387,902$ (614,993)$ 21,098,843 $ 1,801,819 $ 206,361,748$ 2,457,392$ - - - 3,500,000 - - 7,745,255 - 7,721,968 618,836 (3,982) - (31,404) (378,207) (25,029) 11,328 - 102,394 1,810,620 117,747 25,141 17,767,308 1,507,756 51,989,382 3,125,515 (68,542) (5,341,562) (2,963,063) (41,880,191) (1,579,654) - - - (5,700,237) (2,108,715) (28,958) - - (2,248,782) - 308,705 (9,639,711) 2,579,486 (1,002,546) 490,097 - - - - 1,771,000 (62) - 11,221 547,585 34,111 - (7,238,518) 355,745 (6,873,265) - 503,997 - 14,153 66,260,550 1,361,031 - - - - - - - - - - - - - - - - - - - - - - - 2,743,207 - - - - (8,108,204) - 132,634$ 24,391,615$ 3,378,107$ 274,743,628$ 6,262,331$ -$ -$ -$ (11,187,926)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,576,376$ -$ -$ -$ -$ (1,576,376)$ For the year ended June 30, 2025
Business-type Activities-Enterprise Funds

CITY OF SANTA CLARA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS

Draft

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Draft

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 non- major Custodial funds may be found in the Supplementary section.

Draft

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) 1,482,684 $ 1,125,712$ Receivables (net of allowance for uncollectibles):

Interest and rent 475,752 -
Leases receivable (Note 22) 594,526 -
Total current assets 2,552,962 1,125,712
Noncurrent assets
Leases receivable - noncurrent (Note 22) 37,812,597 - Investment with fiscal agent - noncurrent (Note 7) 2,893,407 - Land held for resale 251,159 -
Total noncurrent assets 40,957,163 -
Total Assets 43,510,125 1,125,712

LIABILITIES
Unearned revenues 122,008 -
Due to other agencies 520,000 -
Total Liabilities 642,008 -

DEFERRED INFLOWS OF RESOURCES
Leases related (Note 22) 35,405,346 -
Total deferred inflows of resources 35,405,346 -

NET POSITION
Held in trust for private purpose 3,841,040 - Restricted for individuals, organization and other governments 3,621,731 1,125,712 Total Net Position 7,462,771$ 1,125,712$

CITY OF SANTA CLARA

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
June 30, 2025

Draft

See accompanying notes to basic financial statements
57 Statement of Fiduciary Net Position

Private Purpose Custodial
Trust Funds Funds

ADDITIONS
Contributions:

Employee contributions -$ 107,250$ Special assessments - 3,501,359 Gifts and bequest - 2,020
Total contributions - 3,610,629 Investment income:

Net change in fair value of investments 125,280 - Interest and rents 3,398,262 16,235
Net investment income 3,523,542 16,235
Gain from sale of property 24,367,222 -
Total additions 27,890,764 3,626,864

DEDUCTIONS
General and administrative 121,427 770
Benefits paid - 36,010
Pass through to the Stadium Authority - 3,408,575 Pass through to the County of Santa Clara 26,918,266 - Loss from lease termination 143,657 -
Total deductions 27,183,350 3,445,355
707,414 181,509
Net position - beginning 6,755,357 944,203
Net position - ending 7,462,771$ 1,125,712$

CITY OF SANTA CLARA

FIDUCIARY FUNDS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Year Ended June 30, 2025
Net increase (decrease) in fiduciary net
position
Draft

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Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025

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 134,587 accounts for 7.08% 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 Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
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 30
th to March 31 st. As such, the financial activities reported for SCSA are as of fiscal year ended March 31, 2025. 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 Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
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 category- governmental, 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.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
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 liabilities are reported as other financing sources.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
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, 2025, the City implemented the following GASB Statements:

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 provisions of this Statement were implemented during fiscal year 2024-25. As a result of the implementation, the City restated its beginning net position for fiscal year 2024-25 to reflect the impact of the updated recognition criteria. For further details, refer to Note 18E – Prior Period Adjustments.

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 implementation had no effect on the financial statement.

The City is analyzing the effects of the following pronouncements and plans to adopt them by the effective dates:

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 any time without prior notice or penalty, pooled cash and investments are considered essentially demand deposit accounts.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

64 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.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
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. Effective July 1, 2024, the City's policy is to capitalize equipment and right-to-use leased equipment with costs exceeding $10,000 (previously $5,000), buildings, improvements and infrastructure with costs exceeding $20,000, land improvements with costs exceeding $25,000 (previously $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 20-25 25,000
Machinery and equipment 2-20 10,000
Right-to-use leased equipment Contract Term 10,000 Right-to-use SBITA assets Contract Term 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 Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

66 assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange- like transaction.

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.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

67 L. Compensated Absences
Effective July 1, 2024, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. GASB 101 establishes a unified model for recognizing all types of compensated absences, such as vacation, sick leave, and paid time off, based on when the leave is earned rather than when it is used or paid.

Under the previous accounting policy, the City recognized liabilities only for vacation leave and certain types of vested sick leave. Upon implementation of GASB 101, the City recognizes the compensated absences liabilities when the following criteria are met:

1. The leave is attributable to services already rendered;

2. The leave accumulates; and

3. It is more likely than not that the leave will be used for time off or otherwise paid or settled.

Vacation leave is earned based on an employee’s length of service and ranges from 10 to 24 days per year.

Employees may carry forward unused vacation, subject to maximum limits that vary by accrual rate, with a general cap of 480 hours for most employee groups. Upon separation from employment, employees are compensated for all unused vacation and certain other eligible benefits.

Sick leave may be accumulated without limit for use; however, the amount payable upon retirement is capped at 1,500 hours (or 3,000 hours for 24-hour Fire personnel). For employees with accumulated sick leave balances as of January 1, 2004, the maximum payable amount at retirement is limited to the balance recorded on that date plus 1,500 hours (or 3,000 hours for 24-hour Fire personnel). Employees who have completed fifteen (15) or more years of aggregate service with the City are eligible, upon retirement, to receive payment for accumulated sick leave attributable to continuous service.

For Fire Department public safety employees on a 24-hour shift schedule, accumulated sick leave hours are first divided in half, and the resulting balance is converted to its dollar equivalent based on the employee’s reduced 24-hour average hourly rate of pay at the time of separation. Payment is then made in accordance with the provisions described above.

In the event of an employee’s death, all accrued sick leave is paid to the employee’s estate at full value.

The accrual for compensated absences comprised the following at June 30, 2025.

Governmental Business-Type
Activities Activities Total
Beginning Balance Restated 29,332,048$ 11,122,149$ 40,454,197$ Additions* 1,246,926 530,234 1,777,160 Ending Balance 30,578,974$ 11,652,383$ 42,231,357$ Current Portions 10,571,743$ 4,028,935$ 14,600,678$ * Net Change
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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

68 M. Risk Management
The City is self-insured up to $3 million to provide general liability protection. In addition to the City's self- insurance, 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 self- insurance 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 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 $25 million through PRISM and deductibles from $2,500 to $25,000.

The City also had property coverage specific to the electric power plants which has a plan limit of $250 million and deductibles from $100,000 to $750,000.

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.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

69 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.

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.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

70 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.

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, 2025, was $66 billion, an increase of 7.3% compared to the previous year. The average tax rate was 1.16% 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 City- owned 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.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

71 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.

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.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

72 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.

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 Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

73 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, 2025, conditional grants of $25,129,035 were offset by reserves of $10,376,219.

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.

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, 2025, the balance of the Vehicle Registration Fees are as follows:

Vehicle Registration
Fee
Beginning Balance July 1, 2024 3,536,465$
Intergovernmental revenue 871,194
Interest 144,231
Expenditures (59,788)
Ending Balance June 30, 2025 4,492,102$

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 Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 3 – BUDGETS AND BUDGETARY ACCOUNTING (continued)

74 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.

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.

Expenditures in Excess of Appropriations
General Fund expenditures in the City Clerk department exceeded budget in the amount of $82,493. Sufficient resources were available in the fund to cover the excess.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025

75 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.

The balances related to leases receivable and deferred inflows of resources as of June 30, 2025 are:

Leases Receivable
Deferred Inflow of
Resources
Governmental activities
General Fund 254,365,857$ 246,106,700$
Business-type activities
Electric Utility 1,852,925$ 1,712,000$
Water Utility 656,054 563,039
Sewer Utility 656,054 563,039
Stadium Authority (as of March 31, 2025) 582,290,498 561,552,578 585,455,531$ 564,390,656$
Total leases receivable 839,821,388$ 810,497,356$

A discussion of the most significant leases follows:

A. 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 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.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 4 – LEASE AGREEMENTS (continued)

76 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, 2025, the City recognized $1,313,233 in lease revenue and $2,087,154 in interest revenue for Parcel 1 and $633,168 in lease revenue and $1,006,309 in interest revenue for Parcel 3. As of June 30, 2025, the City’s receivable for lease payments for Parcel 1 was $91,316,309 and the balance of the deferred inflows of resources was $88,424,384. The City’s receivable for lease payments for Parcel 3 was $44,027,618 and the balance of the deferred inflows of resources was $42,633,300.

B. 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 were passed on to the Successor Agency. Additional information concerning the Settlement Agreement can be found in Note 22.

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.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 4 – LEASE AGREEMENTS (continued)

77 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, 2025, the City recognized $107,932 in lease revenue and $4,171 in interest revenue. As of June 30, 2025, the City’s receivable for lease payments was $356,897 and the balance of the deferred inflows of resources was $386,758.

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.

On May 7, 2024, the City Council, acting as the governing board of the Successor Agency to the Redevelopment Agency of the City of Santa Clara, adopt a Resolution authorizing the City Manager/Executive Officer to negotiate and execute a Purchase and Sale Agreement between the Successor Agency to the Redevelopment Agency of the City of Santa Clara and XHR Acquisitions LLC for the Hyatt Parcel at a purchase price of $25,000,000 including an amendment to the Ballroom Lease Agreement. On March 25, 2025, the Fourth Amendment to Ballroom License Agreement was executed between the City and Hyatt, extending the lease term to April 30, 2084.

For the fiscal year ended June 30, 2025, the City recognized $274,484 in lease revenue and $193,811 in interest revenue. As of June 30, 2025, the City’s receivable for lease payments was $7,841,027 and the balance of the deferred inflows of resources was $7,633,504.

C. 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, 2025, the City recognized $26,174 in lease revenue and $4,588 in interest revenue. As of June 30, 2025, the City’s receivable for lease payments was $411,522 and the balance of the deferred inflows of resources was $407,880.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 4 – LEASE AGREEMENTS (continued)

78 D. 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 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, 2025, the City recognized $432,590 in lease revenue and $1,932,088 in interest revenue for Phase 1-A, recognized $380,247 in lease revenue and $1,698,308 in interest revenue for Phase 1-B, recognized $173,693 in lease revenue and $775,771 in interest revenue for Phase 1-C. As of June 30, 2025, the City’s receivable for lease payments was $42,785,031 and the balance of the deferred inflows of resources was $41,730,962 for Phase 1-A, the lease receivable $37,608,110 and the balance of the deferred inflows of resources was $36,681,583 for Phase 1-B, the lease receivable $17,179,016 and the balance of the deferred inflows of resources was $16,755,787 for Phase 1-C.

E. Future Lease Payments
As of June 30, 2025, 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:

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 4 – LEASE AGREEMENTS (continued)

79 For the Year
Ending June 30 Principal Interest Principal
(1)
Interest
2026 $ 1,400,066$ 4,588,243$ 340,423$ 89,226
2027 1,454,698 4,764,212 342,585 80,416
2028 1,501,336 4,772,164 355,910 71,729
2029 1,448,790 4,759,574 375,767 62,335
2030 1,508,999 4,757,779 253,819 52,755
2031-2035 8,537,729 25,772,928 880,738 154,840
2036-2040 10,413,958 25,975,647 615,791 41,182
2041-2045 9,263,886 29,355,412 - -
2046-2050 7,671,263 32,943,805 - -
2051-2055 8,358,816 35,328,093 - -
2056-2060 9,434,609 38,969,623 - -
2061-2065 10,676,258 42,529,923 - -
2066-2070 12,088,237 47,711,032 - -
2071-2075 13,707,107 52,299,842 - -
2076-2080 15,565,656 59,492,610 - -
2081-2085 17,204,704 66,626,596 - -
2086-2090 17,621,353 75,201,865 - -
2091-2095 8,936,237 87,321,391 - -
2096-2100 - 100,477,883 - -
2101-2105 - 119,616,137 - -
2106-2110 - 138,031,418 - -
2111-2115 - 164,322,579 - -
2116-2120 38,116,567 151,503,992 - -
2121-2124 59,455,588 2,019,201 - -
254,365,857$ 1,319,141,949 $ 3,165,033 $ 552,483 $
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)

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025

80 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 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. In November 2021, Oakview Group acquired Spectra and rebranded to OVG360 (OVG). The initial term of this agreement began on March 18, 2019 and expired on June 30, 2024 with the option to extend the agreement for two subsequent terms of five (5) years by serving notice to OVG no later than 180 days from the expiration of the term period. Option Term One was exercised to extend the agreement for a subsequent term of five (5) years which began on July 1, 2024 and expires on June 30, 2029. Under the terms of this agreement, OVG 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, 2025, the City paid OVG $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 expired on June 30, 2025 with the option to extend the 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. Option Term One was exercised to extend the agreement for a subsequent term of five (5) years which begins on July 1, 2025 and expires on June 30, 2030. 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, 2025, the City paid Levy $368,903 in fees.

In accordance with the March 18, 2019 executed agreement, OVG agreed to pay the City $1,150,000 for Capital Investments to be used for capital improvements and repairs at the Convention Center. This is amortized on a straight-line basis over 15 years beginning May 1, 2019. With the extension of the agreement, under Option Term One, OVG agreed to pay the City an additional $550,000 for Capital Investments. This investment was received December 13, 2024 and will be amortized on a straight-line basis over 10 years beginning July 1, 2025. In the event that this agreement terminates for any reason prior to the full amortization of the investment funds, the City is obligated to reimburse OVG for the unamortized portion.

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.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025

81 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.

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, 2025, ManagementCo charged the SCSA $7.7 million in Shared Expenses, and $9.4 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 $1 million in ground rent in fiscal year ended March 31, 2025.

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 $10.2 million for fiscal year ended Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 6 – SANTA CLARA STADIUM AUTHORITY (continued)

82 March 31, 2025, which triggers the performance-based rent. Performance-based rent payments of $4.6 million were made to the City for the fiscal year ended March 31, 2025.

The following schedule summarizes the minimum future payments due under this lease:

Fiscal Year Ground Lease
Ending March 31 Amount
2026 1,000,000$
2027 1,000,000
2028 1,000,000
2029 1,000,000
2030 1,100,000
Thereafter 31,400,000
Total 36,500,000$

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 was amended on May 28, 2024 to implement the terms of the 2024 Settlement Agreement (see Note 20E).

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.

Rent payable by StadCo to SCSA is $24.8 million per year. The lease also provides for a fair market rent adjustment in year 33.

The SCSA received $24.8 million in stadium rent from StadCo in the fiscal year ended March 31, 2025.

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 (SCSA 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.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 6 – SANTA CLARA STADIUM AUTHORITY (continued)

83 E. Consistency with Current Period Operations
Certain prior year amounts have been reclassified for consistency with the current year presentation. These classifications had no effect on the reported results of operations.

F. Immaterial Correction of an Error
Amounts previously reported in the 2024 financial statements have been revised for certain immaterial corrections related to the accounting for the unearned revenue on defaulted SBLs, including decreasing unearned revenue, current portion and unearned revenue, noncurrent by $0.8 million and $22.3 million, respectively, and increasing rents and licensing and net position – beginning of period by $0.8 million and $22.3 million, respectively.

G. Subsequent Event
Management has evaluated subsequent events through September 29, 2025, which is the date the SCSA financial statements were available to be issued, and determined there are no other items to disclose.

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 $1,802.3 million as of June 30, 2025. This amount includes the City’s pooled cash and cash investments of $1,640.1 million, and cash and investments with fiscal agents of $162.2 million.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 7 – CASH AND INVESTMENTS (continued)

84 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 1,482,345,406$
Investments with fiscal agent - current 147,089,434
Restricted cash 147,562,391
Deposits 7,621,750
Investments with fiscal agent - noncurrent 12,254,011
Fiduciary Funds
Pooled cash and investments 2,608,396
Investments with fiscal agent - noncurrent 2,893,407
Total Cash and Investments 1,802,374,795$

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 434,258,945$ 997,698,559$ 50,387,902$ 2,608,396$ 1,484,953,802$ Investments with fiscal
agent - current 18,993 147,070,441 - - 147,089,434 Restricted cash 40,198,370 107,364,021 - - 147,562,391 Investments with fiscal
agent - noncurrent 716,085 11,537,926 - 2,893,407 15,147,418 Deposits - 7,621,750 - - 7,621,750 Total cash and
investments 475,192,393$ 1,271,292,697$ 50,387,902$ 5,501,803$ 1,802,374,795$

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.

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 7 – CASH AND INVESTMENTS (continued)

85 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:

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
r
atings
categories
80%
(B) 40%
N
egotiable 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
c
ategory
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% 10%
(
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 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.

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 7 – CASH AND INVESTMENTS (continued)

86 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 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 Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 7 – CASH AND INVESTMENTS (continued)

87 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.

The average maturity of the City’s pooled investment portfolio at June 30, 2025 was approximately 2.40 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, 2025 for each investment type:

Credit Under 180 181 - 365 1 - 3 3 - 5 Over 5 Fair
Type o f Inves tment Rating Days Days Years Years Years Value Cash N/A 127,030,108$ - $ -$ -$ - $ 127,030,108$ US Treasury Notes AA+ 434,694,101 276,442,147 - 711,136,248 Federal Home Loan Mortgage Corporation AA+ 4,996,750 - - - - 4,996,750 Mortagage-Backed Securities AA+ - - 37,555,649 67,267,546 - 104,823,195 Corporate Notes AAA - - 4,897,288 - - 4,897,288 Corporate Notes AA 9,943,700 - 20,423,937 60,484,337 - 90,851,974 Corporate Notes A 8,645,246 13,663,920 54,065,805 76,594,577 - 152,969,548 Asset-Backed Securities AAA & Aaa - - 23,269,963 76,846,168 - 100,116,131 Negotiable Certificates of Deposit A+ - - 7,604,250 - - 7,604,250 Money Market Funds (CAMP Pool) AAAm 204,708,565 - 204,708,565 Money Market Funds (CAMP Term) AAAf 60,000,000 - 60,000,000 Principal Public Deposit Sweep Program Not Rated 527,323 - - - - 527,323 State Investment Pool (LAIF) Not Rated 6,210,979 - - - - 6,210,979 Total Cash and Investments -
City Treasury 422,062,671 13,663,920 582,510,993 557,634,775 - 1,575,872,359 Cash (Debt Fund) Not Rated 12,637,965 - - - - 12,637,965 Cash (Pension Rate Stabilization Investment) Not Rated 6,007 - - - - 6,007 U.S. Treasury Notes
(Bentzien Trust) Aaa - - 50,455 100,953 50,346 201,754 Federal Home Loan Bank
(Bentzien Trust) Aaa
- 35,000 49,630 - 91,653 176,283 Municipal Bonds (Bentzien Trust) Aaa 74,801 - - - 78,628 153,429 Municipal Bonds (Bentzien Trust) Aa - - 36,353 70,794 - 107,147 Municipal Bonds (Bentzien Trust) A - 48,943 - - - 48,943 Municipal Bonds (Bentzien Trust) BBB - - - - 9,016 9,016 Corporate Bonds (Bentzien Trust) A - - 24,890 - - 24,890 Corporate Bonds (Bentzien Trust) BBB - - 35,984 - - 35,984 Corporate Bonds (Bentzien Trust) A & B 1,002,458 - - - - 1,002,458 (c ontinue d)
Maturity
Cas h and Inves tments - Other:

Cas h and Inves tments - City Treas ury:

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 7 – CASH AND INVESTMENTS (continued)

88 Credit Under 180 181 - 365 1 - 3 3 - 5 Over 5 Fair
Type o f Inves tment Rating Days Days Years Years Years Value Mutual Fund - Dreyfus Money Market (Bond
Proceeds) Aaam 2,457,804 - - - - 2,457,804 Mutual Fund - Blackrock Money Market (Debt Fund) Aaam 735,078 - - - - 735,078 Mutual Fund - Money Market Funds (Debt Fund -
BNY) Aaam 1,691 - - - - 1,691 Mutual Fund - Money Market Funds (Debt Fund -
Chase) AAAm 117,879,459 - - - - 117,879,459 Mutual Fund - Federated Prime (Bentzien Trust) Aaam 189,551 - - - - 189,551 Mutual Fund - International
Equities (Bentzien Trust) Not Rated
205,367 - - - - 205,367 Mutual Fund - Fixed Income
(Bentzien Trust) Not Rated
1,135,191 - - - - 1,135,191 Mutual Fund - Equities
(Bentzien Trust) Not Rated 166,280 - - - - 166,280 Exchange Traded Funds
(Bentzien Trust) Not Rated 134,145 - - - - 134,145 Mutual Fund - Fidelity Treasury
(SCSA Debt Fund) AAAm
11,536,236 - - - - 11,536,236 Morgan Stanley Institutional Liquidity
Treasury Securities (SCSA Debt Fund) AAAm 16,553,017 - - - - 16,553,017 Pension Rate Stabilization Investment
(Cash Equivalents) Not Rated 1,785,173 - - - - 1,785,173 Pension Rate Stabilization Investment
(Mutual Funds-Equity) Not Rated
16,093,225 - - - - 16,093,225 Pension Rate Stabilization Investment
(Mutual Funds-Fixed Income) Not Rated 35,582,491 - - - - 35,582,491 Real Estate Investment Trust (Bentzien Trust) B++ 22,102 - - - - 22,102 Collateral Obligations (ADM & CAISO) Not Rated (A) 7,621,750 - - - - 7,621,750 225,819,791 83,943 197,312 171,747 229,643 226,502,436 Total Cash and Investments 647,882,462$ 13,747,863 $ 582,708,305$ 557,806,522$ 229,643 $ 1,802,374,795$ Note:
(A) 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
Cas h and Inves tments - Other: (co ntinued)

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.

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 7 – CASH AND INVESTMENTS (continued)

89 Inves tments
and Derivative
Ins truments
Meas ured at
Fair Value
Quo ted P rices
in Active
Markets fo r
Identical
As s ets
Significant
Other
Obs ervable
Inputs
6/30/2025 Level 1 Level 2 Exempt (1)
Inves tments by Fair Value Level
U.S. Treasury Notes 711,136,248$ 711,136,248$ -$ -$ Federal Home Loan Mortgage Corporation 4,996,750 - 4,996,750 - Mortagage-Backed Securities 104,823,195 - 104,823,195 - Corporate notes 248,718,810 - 248,718,810 - Asset-Backed Securities 100,116,131 - 100,116,131 - Negotiable Certificates of Deposit 7,604,250 - 7,604,250 - Money Market Funds (CAMP Pool) 204,708,565 - - 204,708,565 Money Market Funds (CAMP Term) 60,000,000 - - 60,000,000 Principal Public Deposit Sweep Program 527,323 - - 527,323 Total Short Term Investments 1,442,631,272 711,136,248 466,259,136 265,235,888 U.S. Treasury Notes (Bentzien Trust) 201,754 201,754 - - Federal Home Loan Bank (Bentzien Trust) 176,283 - 176,283 - Municipal Bonds (Bentzien Trust) 153,429 - 153,429 - Municipal Bonds (Bentzien Trust) 107,147 - 107,147 - Municipal Bonds (Bentzien Trust) 48,943 - 48,943 - Municipal Bonds (Bentzien Trust) 9,016 - 9,016 - Corporate Bonds (Bentzien Trust) 24,890 - 24,890 - Corporate Bonds (Bentzien Trust) 35,984 - 35,984 - Mutual Fund - Dreyfus Money Market (Bond Proceeds) 2,457,804 - - 2,457,804 Mutual Fund - Blackrock Money Market (Debt Fund) 735,078 - - 735,078 Mutual Fund - Money Market Funds (Debt Fund) 118,070,701 - - 118,070,701 (c ontinue d)
Fair Value Meas urements Us ing
Short Term Investments
Debt Securities and Other

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 7 – CASH AND INVESTMENTS (continued)

90 Inves tments
and Derivative
Ins truments
Meas ured at
Fair Value
Quo ted P rices
in Active
Markets fo r
Identical
As s ets
Significant
Other
Obs ervable
Inputs
6/30/2025 Level 1 Level 2 Exempt (1)
Mutual Fund - International Equities (Bentzien Trus t) 205,367 205,367 - - Mutual Fund - Fixed Income (Bentzien Trust) 1,135,191 - 1,135,191 - Mutual Fund - Equities (Bentzien Trust) 166,280 166,280 - - Mutual Fund - Fidelity Treasury (SCSA Debt Fund) 11,536,236 - - 11,536,236 Morgan Stanley Institutional Liquidity
Treasury Securities (SCSA Debt Fund) 16,553,017 - - 16,553,017 Pension Rate Stabilization Investment
(Cash and Equivalents)
1,785,173 1,785,173 - - Pension Rate Stabilization Investment
(Mutual Funds-Equity) 16,093,225 4,552,070 11,541,155 - Pension Rate Stabilization Investment
(Mutual Funds-Fixed Income) 35,582,491 35,582,491 - - Pension Rate Stabilization Investment
(Cash And Accrual) 6,007 - - 6,007 Collateral Obligations (ADM & CAISO) 7,621,750 - - 7,621,750 Total Debt Securities and Other 212,705,766 42,493,135 13,232,038 156,980,593 Corporate Stock (Bentzien Trust) 1,002,458 1,002,458 - - Exchange Traded Funds (Bentzien Trust) 134,145 134,145 - - Real Estate Investment Trust (Bentzien Trust) 22,102 22,102 - - Total Equity Securities 1,158,705 1,158,705 - - Total Investment by Fair Value Level 1,656,495,743 754,788,088 479,491,174 422,216,481 Inves tments Meas ured at fair value but no t s ubject to fair value hierachy:

State Investment Pool (LAIF) 6,210,979 - - 6,210,979 Total Investments 1,662,706,722 754,788,088$ 479,491,174$ 428,427,460$ Cas h in Banks 139,668,073
To tal Cas h and Inves tments 1,802,374,795$
Inves tments Derivative Ins truments
Open contract gas trading - Current Assets 2,871,435$ 2,871,435 Open contract gas trading - current liabilities (1,098,675) (1,098,675) Total Investment Derivative Instruments 1,772,760$ 1,772,760$ (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 Meas urements Us ing
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.

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 Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 7 – CASH AND INVESTMENTS (continued)

91 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 third- party custodian.

H. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City’s investment portfolio includes callable corporate notes and callable asset-backed securities (ABS) held within the City’s investment pool. These investments are considered highly sensitive to interest rate fluctuations because changes in market interest rates may affect both the timing and amount of the securities’ cash flows. When interest rates decline, issuers may exercise the call option and redeem the securities prior to their stated maturity. If these securities are called, the City may be required to reinvest the proceeds at lower prevailing market rates, which may reduce future investment earnings.

As of June 30, 2025, the City held $51 million in callable corporate notes and $189 million in callable ABS.

These securities have stated maturities ranging from November 2025 to May 2030 and next call dates ranging from August 2025 to April 2030.

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 Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 7 – CASH AND INVESTMENTS (continued)

92 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.

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 dollar- weighted 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, 2025, the fair value approximated the City’s cost. At June 30, 2025, the CAMP Pool investments had an average maturity of 41 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, 2025 were as follows:

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 8 – INTERFUND TRANSACTIONS AND BALANCES (continued)

93 Fund Receiving Transfers Fund Making Transfers Amount General Fund Non-Major Governmental 3,114,963$ A Internal Service Funds 162,677 B
Electric Utility 383,129 C
Non-Major Governmental General Fund 28,700,587 D Cemetery 2,637 E
Sewer Utility 896,034 E
Solid Waste 48,770 E
Water Utility 564,977 E
Water Recycling Utility 6,562 E
Electric Utility 2,604,141 E
Non-Major Governmental 9,264,631 F
Internal Service Funds General Fund 196,917 G Electric Utility 570,232 H
Non- Major Governmental 83,636 I
Sewer Utility 1,742,287 J
Cemetery General Fund 827,689 K
Electric Utility Water Utility 195,500 L
Non-Major Governmental 364,315 L
Sewer Utility Internal Service Funds 35,652 M Solid Waste General Fund 102,564 N
Santa Clara Convention Center General Fund 426,852 O Santa Clara Open Space Authority General Fund 10,200 P Total Interfund Transfers 50,304,952$

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 8 – INTERFUND TRANSACTIONS AND BALANCES (continued)

94 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, return of the savings from capital projects, and FEMA Public Assistance grant reimbursements, along with administrative transfer from the special revenue funds. (B) Return the savings from the 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 Funds to fund various street related projects, parking lot paving project, and PeopleSoft upgrade project.
(G) Transfer from General Fund to purchase a mobile incident command vehicle. (H) Transfer from Electric Utility 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 from Sewer Utility fund to cover a special liability claim. (K) Transfer to Cemetery fund to subsidize the cemetery operation. (L) Transfer fund to the Electric Utility fiber project for the stormwater and water ground improvement project.
(M) Returning the savings from CIP Management Service Fee fund to the original funding source. (N) Transfer to Solid Waste to subsidize the rate assistance program. (O) Transfer to Santa Clara Convention Center to subsidize the operation. (P) Transfer to Santa Clara Open Space Authority for the annual audit expenditures.

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 8 – INTERFUND TRANSACTIONS AND BALANCES (continued)

95 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, 2025.

Receivable Fund Payable Fund Amount
General Fund Santa Clara Stadium Authority 118,978$
Receivable by Governmental Funds 118,978
Electric Utility Internal Service Funds 4,773,495
Water Utility Internal Service Funds 1,309,352
Sewer Utility Internal Service Funds 1,220,074
Cemetery Internal Service Funds 286,207
Receivable by Enterprise Funds 7,589,128 41,213
Internal Service Funds Internal Service Funds 46,059
Receivable by Internal Service Funds 46,059
Total 7,754,165$
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 $197,254 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).

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025

96 NOTE 9 – CAPITAL ASSETS
A. Capital Assets Summary
Capital Assets at June 30, 2025 are comprised of:

Balance Retirements/ Balance
June 30, 2024 Additions Adjustments Transfers June 30, 2025 Governmental Activities
Non Depreciable Assets:

Land 129,919,105$ 2,627,500$ $ - $ - 132,546,605$ Construction in progress 58,637,656 20,784,523 - (18,558,979) 60,863,200 - - Total Non Depreciable Assets 188,556,761 23,412,023 - (18,558,979) 193,409,805 Capital assets being depreciated:

Land improvements 60,439,821 - - 8,557,936 68,997,757 Buildings 217,442,023 - - 921,918 218,363,941 Infrastructure 645,816,602 10,440,942 - 7,479,270 663,736,814 Machinery & equipment 89,667,744 10,250,422 (2,020,012) 1,599,855 99,498,009 Right-to-use leased equipment 676,479 1,576,376 - - 2,252,855 Right-to-use subscription based IT arrangement 12,677,191 586,348 - - 13,263,539 - -
Total Capital assets being depreciated 1,026,719,860 22,854,088 (2,020,012) 18,558,979 1,066,112,915 Less accumulated depreciation for:

Land improvements (23,856,612) (2,670,025) - - (26,526,637) Buildings (86,713,147) (4,216,026) - - (90,929,173) Infrastructure (360,351,775) (14,767,022) - - (375,118,797) Machinery & equipment (71,337,736) (4,015,958) 2,013,062 - (73,340,632) Right-to-use leased equipment (637,307) (117,979) - - (755,286) Right-to-use subscription based IT arrangement (3,441,363) (1,948,460) - - (5,389,823) - -
Total accumulated depreciation (546,337,940) (27,735,470) 2,013,062 - (572,060,348) - - Net Depreciable Assets 480,381,920 (4,881,382) (6,950) 18,558,979 494,052,567 - - Governmental Activity Net Capital Assets 668,938,681$ 18,530,641$ (6,950)$ -$ 687,462,372$

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025

97 NOTE 9 – CAPITAL ASSETS (continued)

Balance Retirements/ Balance
June 30, 2024 Additions Adjustments Transfers June 30, 2025 Business-Type Activities
Non Depreciable Assets:

Land 18,851,211$ 5,500,000$ 7,850$ -$ 24,359,061$ Construction in progress 92,641,663 76,111,683 (3,734,410) (16,737,759) 148,281,177 Total Non Depreciable Assets 111,492,874 81,611,683 (3,726,560) (16,737,759) 172,640,238 Capital Assets being depreciated:

Land Improvements 102,407 - - - 102,407 Buildings 922,467,126 - - 1,642,284 924,109,410 Infrastructure 1,316,533,877 - - 14,818,380 1,331,352,257 Machinery & equipment 29,856,368 3,392,292 (9,853) 277,095 33,515,902 Right-to-use leased equipment 2,916,623 - - - 2,916,623 Right-to-use Subscription based IT arrangement 3,837,038 - - - 3,837,038 - - Total Capital Assets being depreciated 2,275,713,439 3,392,292 (9,853) 16,737,759 2,295,833,637 Less accumulated depreciation for:

Land Improvements (84,838) (2,571) - - (87,409) Buildings & improvements (230,460,926) (18,310,563) - - (248,771,489) Infrastructure (633,599,125) (30,651,005) - - (664,250,130) Machinery & equipment (22,039,025) (1,849,737) 9,853 - (23,878,909) Right-to-use leased equipment (2,019,200) (673,066) - - (2,692,266) Right-to-use Subscription based IT arrangement (864,051) (502,440) - - (1,366,491) Total accumulated depreciation (889,067,165) (51,989,382) 9,853 - (941,046,694) Net Depreciable Assets 1,386,646,274 (48,597,090) - 16,737,759 1,354,786,943 Enterprise Activity Net Capital Assets 1,498,139,148$ 33,014,593$ (3,726,560)$ -$ 1,527,427,181$

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
98 NOTE 9 – CAPITAL ASSETS (continued)
B. Construction in Progress Summary
Construction in Progress for governmental activities as of June 30, 2025 consisted of the following projects:

Future
Governmental Projects Authorized Expended Commitments
Transportation Improvements 59,696,295$ 33,516,645$ 26,179,650$ Parks and Recreation Improvements 20,478,128 10,416,541 10,061,587 City Building Improvements 32,206,240 16,930,014 15,276,226 Total 112,380,663$ 60,863,200$ 51,517,463$

Construction in Progress for business-type activities as of June 30, 2025 consisted of the following:

Future
Enterprise Fund Projects Authorized Expended Commitments Electric Projects 429,502,443 $ 138,921,943$ 290,580,500$ Water and Sewer Projects 2,722,008 148,859 2,573,149 Stadium Authority Projects 17,061,000 7,530,524 9,530,476 Santa Clara Convention Center Projects 4,236,480 1,679,851 2,556,629 Total 453,521,931$ 148,281,177$ 305,240,754$

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 and the right-to-use SBITA assets. The amounts allocated to each function or program are as follows:

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 9 – CAPITAL ASSETS (continued)
99 Governmental Activities:

General Administration 2,433,206$
Finance 4,505
Public Works 15,265,613
Parks and Recreation 3,461,663
Public Safety
Police 968,698
Fire 458,912
Planning and Inspection 4,316
Library 1,394,205
23,991,118
Capital assets held by the City's Internal Service
Funds are charged to the various functions
based on their usage of the assets 3,744,352
Total Governmental Activities 27,735,470$
Business-Type Activities:

Utility Funds:

Electric Utility 29,297,972$
Water Utility 1,981,045
Sewer Utility 1,410,160
Water Recycling Utility 25,141
Solid Waste 2,547
Cemetery 6,287
Santa Clara Convention Center 1,498,922
Santa Clara Stadium Authority 17,767,308
Total Business-Type Activities 51,989,382$

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
100

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%
2024 Series A Revenue Bonds 10/23/2024 7/1/2044 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 1.74%
2020-2 Series Revenue Bonds 4/10/2020 7/1/2028 1.31%
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%
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.

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 101

Authorized
Outstanding as of
June 30, 2024
Additions,
Transfers, and
Amort. of
Premiums /
Discounts
Debt Retired /
Defeased
Outstanding as
of June 30,
2025
Current
Portion
18,540,000$ 9,055,000$ - $ 1,085,000$ 7,970,000$ 1,120,000$ 420,800 (54,297) - 366,503 - 18,540,000 9,475,800 (54,297) 1,085,000 8,336,503 1,120,000 48,800,000 24,775,000 - 5,795,000 18,980,000 6,005,000 112,175,000 - 112,175,000 - 112,175,000 3,345,000 2,259,699 16,991,454 - 19,251,153 - 282,794,108 199,956,240 - 7,299,896 192,656,344 7,838,094 443,769,108 226,990,939 129,166,454 13,094,896 343,062,497 17,188,094 52,985,000 52,985,000 - - 52,985,000 - 34,315,000 28,560,000 - 5,695,000 22,865,000 5,910,000 16,720,000 3,970,000 - 3,970,000 - - 12,000,000 6,064,269 - 811,995 5,252,274 829,465 34,585,000 34,585,000 - 735,000 33,850,000 770,000 1,390,789 1,367,609 (55,631) - 1,311,978 - 38,000,000 28,711,586 1,758,666 26,952,920 - 189,995,789 156,243,464 (55,631) 12,970,661 143,217,172 7,509,465 633,764,897 383,234,403 129,110,823 26,065,557 486,279,669 24,697,559 652,304,897$ 392,710,203$ 129,056,526$ 27,150,557$ 494,616,172$ 25,817,559$

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 102

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.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 103

Electric Revenue Bonds, Series 2024A
On October 23, 2024, SVP 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, bear coupon rate of 5%, with optional redemption for bonds with maturities after July 1, 2035 and were sold at an All-In True Interest Cost of 3.27%. Debt service on the Electric 2024A Bonds is secured by a pledge of net revenues of the Electric Utility Fund.

In the event of default, SVP 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.

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 the Electric Utility Fund 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.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 104

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 the Electric Utility Fund on a basis subordinate to outstanding Senior Electric Revenue Bonds, if any.

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 adjusted net revenues ends upon repayment of all outstanding principal on bonds and loans, which is scheduled to occur in fiscal year 2044-45. For fiscal year 2024-25, Electric Fund revenues, including operating revenues and non-operating interest earnings, amounted to $860.8 million and operating costs including operating expenses, but not interest, depreciation or amortization whole amounted to $570.6 million. Adjusted net revenues available for debt service amounted to $290.1 million which represented a coverage ratio of 13.3 on the $21.8 million of debt service.

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.

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 105

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 2024-25, Sewer Fund revenues, including operating revenues and non-operating interest earnings, amounted to $59.6 million and operating costs including operating expenses, but not interest, depreciation or amortization whole amounted to $40.1 million. Net revenues available for debt service amounted to $19.6 million which represented a coverage ratio of 6.0 on the $3.3 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.

Term A Loan
The Term A Loan was made in the amount of $282.8 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, 2025, $192.7 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 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 Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 106

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, 2025 as the special CFD tax was submitted to the SCSA, a number of payments were made on the StadCo CFD Advance. StadCo CFD Advance 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 $1.6 million in interest and $1.8 million in principal during the year ended March 31, 2025. As of March 31, 2025, $27 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 SCSA as part of the take out financing process. Under the Restated StadCo Obligations Agreement, StadCo will loan the SCSA an amount not to exceed $500 million with a fixed 5.50% interest rate.

Required principal repayments started in March 2016 and the SCSA may prepay the loan at any time. Debt service on this loan is secured by a pledge of available SCSA revenues on a basis subordinate to outstanding senior loans, if any. As of March 31, 2025, there was no balance outstanding.

In the event of default under the loan agreement, StadCo has the right, upon written notice to the SCSA, to accelerate and declare the SCSA’s obligation to repay the related loan to StadCo to be immediately due and payable.

Management Company Revolving Loan
The Management Company Revolving Loan dated as of March 28, 2012 was entered into by and between the SCSA and ManagementCo. The Management Company Revolving Loan provides borrowing to the SCSA 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 SCSA to pay Covered SCSA 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, 2025, there was no balance outstanding.

Pledges of Future Stadium Revenues
The pledges of future revenues ends upon repayment of the $192.7 million in outstanding principal on the Term A which is scheduled to occur in fiscal year 2039-40. For fiscal year 2024-25, revenues including operating revenues and nonoperating interest earnings amounted to $102.4 million and operating costs including operating expenses, but not interest, depreciation, or amortization amounted to $43.5 million. Net revenues available for debt service amounted to $58.9 million, which represented a coverage ratio of 7.6 on the $7.8 million of debt service to be paid in the coming year.

Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 107

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, 2025 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.

Long Short
Effective
Date
Maturity
Date
Average
Price Classification Amount Classification Amount
765,000 7/1/2020 12/31/2025 $2.42 Derivative
Instrument 1,069,345$ Deferred
inflow 1,069,345$
1,530,000 1/1/2022 12/31/2025 2.64 Derivative
Instrument 1,802,090 Deferred
inflow 1,802,090
920,000 1/1/2021 12/31/2025 0.56
Derivative
Instrument (81,025) Deferred
outflow (81,025)
1,840,000 1/1/2022 12/31/2025 1.03 Derivative
Instrument (1,017,650) Deferred
outflow (1,017,650)
Net Total 1,772,760$ 1,772,760$
Notional
Amount (MMBtu) 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, 2025, two of SVP’s open derivative gas contracts were in an asset position, and the fair values of the open contracts were positive $2.9 million. Two of SVP’s open derivative gas contracts were in a liability position, and the fair values of those open contracts were negative $1.1 million. The open contract was with ADM Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 108

Investor Service, Inc., a clearing member of ICE and a company of Archer Daniels Midland Company who was rated A by S&P Global Ratings as of June 30, 2025.

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, 2025, SVP had posted collateral of $7,621,750 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, 2025, 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:

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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 109

Governmental Activities
For the Year
Ending June 30 Principal Interest Principal Interest Principal Interest 2026 1,120,000$ 285,869$ 9,350,000$ 6,324,000$ 7,509,465$ 2,620,975$ 2027 1,150,000 249,469 9,840,000 5,844,250 7,632,310 2,504,016 2028 1,195,000 209,219 10,355,000 5,339,375 7,765,540 2,383,959 2029 1,235,000 167,394 3,890,000 4,983,250 13,264,161 2,222,266 2030 1,280,000 122,625 4,090,000 4,783,750 14,588,183 2,002,110 2031-2035 1,990,000 99,563 23,805,000 20,551,375 40,047,615 6,992,492 2036-2040 - - 30,570,000 13,787,500 6,945,000 4,860,063 2041-2045 - - 39,255,000 5,103,125 8,730,000 3,070,556 2046-2049 - - - - 8,470,000 973,800 7,970,000$ 1,134,139$ 131,155,000$ 66,716,625$ 114,952,274$ 27,630,237$ Business-Type Activities (excluding Santa Clara Stadium Authority) Bonds Debt from direct borrowingCertificates of Participation

Principal Outstanding as Reported in Government Activities 7,970,000$ Principal Outstanding as Reported in Business Type Activities 246,107,274 Total Principal Outstanding as Reported 254,077,274
Principal Outstanding - Stadium Authority
(1)
219,609,264
Unamortized Discount/Premium 20,929,634
Total Long-term Obligations 494,616,172$
(1) The principal outstanding for Stadium Authority is as of March 31, 2025. 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, 2025, is $9.8 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, 2025, the City has seven 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.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 110

H. Lease Liabilities
The City has recorded right to use leased assets as required by generally accepted accounting principles. 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, 2025, are as follows:

Balance
June 30, 2024 Addition Retirement
Balance
June 30, 2025
Current
portion
Governmental activities
Lease liabilities 39,413$ 1,576,376$ (101,780)$ 1,514,009$ 89,127 $ Business-type activities
Lease liabilities 951,005$ -$ (710,181)$ 240,824$ 240,824 $ Total Lease liabilities 990,418$ 1,576,376$ (811,961)$ 1,754,833$ 329,951 $

The future principal and interest lease payments as of June 30, 2025, are as follows:

For the Year
Ending June 30 Principal Interest Principal Interest
2026 89,127$ 72,873 $ 240,824 $ 553 $ 2027 93,594 68,406 - - 2028 98,114 63,886 - - 2029 103,201 58,799 - - 2030 149,723 53,377 - - 2031-2035 980,250 118,650 - - Total 1,514,009$ 435,991 $ 240,824 $ 553 $
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, 2025, the City has recorded net intangible right-to-use subscription assets amounting to $13,263,539 with accumulated amortization of $5,389,823 in governmental activities and net intangible right-to-use subscription assets amounting to $3,837,038 with accumulated amortization of $1,366,491 in business-type activities. The subscription assets are offset with subscription liabilities.

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For the year ended June 30, 2025
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 111

A summary of governmental activities and business-type activities SBITA payable transactions for the fiscal year ended June 30, 2025, are as follows:

Balance Balance Current
June 30, 2024 Additions Retirements June 30, 2025 Portion Governmental activities
SBITA liabilites 9,203,943$ 586,347$ (2,224,369)$ 7,565,921$ 2,049,881$ Business-type activities
SBITA liabilites 2,976,468$ - $ (481,033)$ 2,495,435$ 503,819$ Total SBITA liabilities 12,180,411$ 586,347$ (2,705,402)$ 10,061,356$ 2,553,700$

As of June 30, 2025, the value of the subscription liability was $7,565,921 in governmental activities and $2,495,435 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.

The future principal and interest SBITA payments as of June 30, 2025, are as follows:

For the Year
Ending June 30 Principal Interest Principal Interest
2026 2,049,881$ 198,510 $ 503,819$ 67,315 $ 2027 1,473,510 147,379 527,486 53,844 2028 946,542 110,214 552,141 39,762 2029 975,947 85,959 382,523 25,069 2030 1,006,700 60,535 321,376 14,770 2031-2035 1,113,341 95,042 208,090 6,012 Total 7,565,921$ 697,639 $ 2,495,435$ 206,772 $ 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 Draft

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NOTE 11 – SOLID WASTE LANDFILL CLOSURE (continued)

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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 $278,170 for postclosure maintenance expenses and $550,024 for corrective action in 2025-26. These amounts are subject to annual inflation factors, as stipulated by CalRecycle. As of June 30, 2025, the cash balance held for postclosure maintenance totaled $238,712, which is $39,458 less than the pledged amount. The shortfall was covered by available resources in the Solid Waste Fund.

At June 30, 2025, a liability in the amount of $7,457,136 was reported based on the estimated remaining postclosure care costs to meet the regulatory requirements. During fiscal year 2024-25, the City incurred post- closure expenses of $808,898 and increased the liability by $1,552,608 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, 2025. 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.

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 6/30/2024 651 Commerce Dr. Roseville, CA 95678
TANC 6/30/2024 P.O. Box 15129 Sacramento, CA 95851
SJSC 6/30/2024 200 E. Santa Clara St. San Jose, CA 95113 MSR EA 12/31/2024 P.O. Box 4060 Modesto, CA 95352
MSR PPA 12/31/2024 P.O. Box 4060 Modesto, CA 95352
SVACA 6/30/2024 3370 Thomas Road Santa Clara, CA 95051 Draft

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NOTE 12 – PARTICIPATION IN JOINT VENTURES (continued)

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The City’s basic financial statements reflect the following investments in joint ventures as of June 30, 2024 (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% 9,823,936 Equity
SJSC
(1) 19.86% 265,680,769 Equity
MSR EA 33.40% - Suspended
MSR PPA 35.00% 11,399,251 Equity
SVACA 56.50% 5,287,765 Equity
Total $336,290,947
$44,099,226 Equity
(1) The investment in San Jose/Santa Clara Regional Wastewater Facility includes the current year capital contribution.

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, 2024, the City was contingently liable for long-term debt as follows (in thousands):

Total Participating Contingent
Debt Share Liability
NCPA 449,300$ 35.64% 160,113$
TANC 159,565 9.65% 15,400
Total 608,865$ 175,513$

In addition, the City would, under certain conditions, be liable to pay a portion of the costs associated with the operations of the entities. Under certain circumstances, such as default or bankruptcy of the other participants, the City may also be liable to pay a portion of the debt of these joint ventures on behalf of those participants and seek reimbursement from those participants.

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Take-or-Pay commitments expire upon final maturity of outstanding debt for each project. Final fiscal year debt expirations as of June 30, 2024 are as follows:

Entitlement Debt Service
Project Debt Expiration Share % Share %
NCPA - Geothermal Project (NGP) July-2024 44.3905% 44.3905% NCPA - Hydroelectric Project (NHP) July-2032 37.0200% 37.3643% NCPA - Lodi Energy Center (NLEC)
(1)
June-2040 25.7500% 35.2854%
TANC - CA-OR Transmission Project (COTP) May-2039 9.6881% 9.6512% (1) The SVP's debt service share in NLEC on issue one is 46.1588%, on issue two is 0%.

A summary of the City’s “Take-or-Pay” contracts and related projects and its contingent liability for the debt service including principal and interest payments at June 30, 2024 is as follows (latest information available):

Fiscal Year NGP NHP NLEC COTP Total
2025 1,545,765 $ 13,367,196$ 7,565,513$ 1,465,120 $ 23,943,594$ 2026 - 6,817,614 7,581,031 1,464,903 15,863,548 2027 - 6,822,128 7,721,815 1,464,831 16,008,774 2028 - 6,884,294 7,723,465 1,464,806 16,072,565 2029 - 6,815,475 7,723,430 1,464,734 16,003,639 2030-2034 - 28,857,091 38,621,287 7,324,659 74,803,037 2035-2039 - - 38,615,696 7,324,975 45,940,671 2040-2041 - - 14,804,750 - 14,804,750 Total 1,545,765 $ 69,563,798$ 130,356,987$ 21,974,028 $ 223,440,578$ C. Northern California Power Agency (NCPA)
NCPA was formed in 1968 as a joint powers agency in the State of California. Its membership consists of sixteen public agencies. NCPA is generally empowered to sell, purchase, generate, transmit, manage electrical energy and provide regulatory and legislative advocacy. Members participate in the projects of NCPA on an elective basis. Therefore, the participation percentage varies for each project in which it participates.

A Commission comprised of one representative for each member governs NCPA. The Commission is responsible for the general management of the affairs, property, and business of NCPA. Under the direction of the General Manager, the staff of NCPA is responsible for providing various administrative, operating and planning services for NCPA and its associated power corporations.

Project Financing and Construction
NCPA’s project construction and development programs have been individually financed by project revenue bonds collateralized by NCPA’s assignment of all payments, revenues and proceeds associated with its interest in each project. Each project participant has agreed to pay its proportionate share of debt service and other Draft

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costs of the related project, notwithstanding the suspension, interruption, interference, reduction or curtailment of output from the project for any reason. Certain of the revenue bonds are additionally supported by municipal bond insurance credit enhancements.

Hydroelectric Project
NCPA is contracted to finance, manage, construct, and operate Hydroelectric Project Number One for the licensed owner, Calaveras County Water District (CCWD). In exchange, NCPA has the right to the electric output of the project for 50 years from February 1982. NCPA also has an option to purchase power from the project in excess of the CCWD’s requirements for the subsequent 50 years, subject to regulatory approval.

Geothermal Project
The NCPA Geothermal Plants have historically experienced greater than anticipated declines in steam production from the existing geothermal wells. Although initially operated as baseload generation projects at full capability (238MW), NCPA changed its steam field production from baseload to load-following and reduced average annual steam production. Along with other steam field operators in the area, the Agency began implementing various operating strategies to further reduce the rate of decline in steam production. The Agency has modified both steam turbine units and the associated steam collection system to enable generation with lower pressure steam at higher mass-flow rates to optimize the utilization of the available steam resource.

In fiscal year 2019-20, NCPA began a well-workover program to restore underperforming wells.

Based upon current operation protocols and forecasted operations, NCPA expects average annual generation and peak capacity to decrease further, reaching approximately 68 MW by the year 2040.

Combustion Turbine Project No. 1
NCPA originally owned five combustion turbine units, each of which is nominally rated at 25 MW, which are collectively known as the Combustion Turbine Project No. 1. These units were completed in 1986 and are designed to provide peak power and reserve requirements and emergency support. Effective September 1, 2010, two units located in the city of Roseville was sold to the City of Roseville. NCPA still owns and operates two units in the city of Alameda and one unit in the City of Lodi. Each purchaser is responsible under its power sales contract for paying an entitlement share in Combustion Turbine Project No. 1 of all NCPA’s costs of such project.

Lodi Energy Center
On May 24, 2010, SVP entered into an agreement with NCPA for a 25.75% interest in the Lodi Energy Center, a 280 MW combined cycle natural gas fired power plant, located in Lodi, California. The project received approval from the California Energy Commission in April 2010 and was placed into operation in November 2012. In January 2020, the Lodi Energy Center suffered a catastrophic turbine failure. NCPA replaced the turbine with a newer state-of-the-art turbine which could use hydrogen as a cleaner fuel source. The majority of the replacement cost was covered by NCPA’s insurance resulting in relatively minimal financial impact to project participants.

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D. Transmission Agency of Northern California (TANC)
TANC was organized under the California Government Code pursuant to a joint powers agreement entered into by 15 Northern California utilities. The purpose of TANC is to provide electric transmission and other facilities for the use of its members through its authority to plan, acquire, construct, finance, operate and maintain facilities for electric power transmission. The joint powers agreement provides that the costs of TANC’s activities can be financed or recovered through assessment of its members or from user charges through transmission contracts with its members. Each TANC member has agreed to pay a pro-rata share of the costs to operate TANC and for payment of debt service, and has the right to participate in future project agreements.

The joint powers agreement remains in effect until all debt obligations and interest thereon have been paid, unless otherwise extended by the members.

California-Oregon Transmission Project
TANC is a participant and also the Project Manager of the California-Oregon Transmission Project (Project), a 340-mile long, 500-kilovolt alternating current transmission project between Southern Oregon and Central California. As Project Manager, TANC is responsible for the overall direction and coordination of all Project operations and maintenance, additions and betterments, and for general and administrative support.

The Project was declared commercially operable on March 24, 1993, with a rated transfer capability of 1,600 megawatts and provides a third transmission path between the electric systems of the Pacific Northwest and those in California. The Project has successfully met and completed the major environmental requirements.

As of June 30, 2024, the most recent data available, TANC’s investment in the Project was $556.4 million, less accumulated depreciation and amortization of $297.7 million.

In connection with its participation in the Project, TANC has an entitlement balance of the Project’s transfer capability of approximately 1,362 megawatts and is obligated to pay an average of approximately 80% of the operating costs associated with the Project. TANC incurred and initially capitalized all costs for project construction since they were expected to be recovered through reimbursement from Project participants and from the successful operations of the Project’s transmission lines. The Project agreement among the participating members provides that each member agrees to make payments, from its revenues, to TANC for project costs incurred and for payment of debt service.

Santa Clara has historically been obligated to pay 20.47% of TANC’s COTP operating and maintenance expenses and 20.70% of TANC’s COTP debt service and 22.16% of the Vernon acquisition debt. Santa Clara has also been entitled to 20.4745% of TANC’s share of COTP transfer capability (approximately 278 MW net of third party layoffs of TANC) on an unconditional take-or-pay basis. Starting on July 1, 2014 Santa Clara laid-off 147 MWs of this entitlement to other TANC members under a 25 year agreement. During the term of this agreement the parties taking on the entitlement will pay all associated debt service, operations and maintenance costs, and all administrative and general costs. Santa Clara’s portion of the operating and maintenance expenses and the COTP debt service is 10.004%.

E. San Jose/Santa Clara Regional Wastewater Facility and Clean Water Financing Authority Draft

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(SJSC)
The City and the City of San Jose jointly own the San Jose/Santa Clara Regional Wastewater Facility, (RWF).

The RWF provides wastewater treatment services to Santa Clara, San Jose, and seven other tributary agencies.

The City of San Jose is the administering agency for the RWF. The San Jose/Santa Clara Clean Water Financing Authority (Authority) was created in 1981 to provide financing for capital improvements at the RWF.

In 1959, the City and the City of San Jose entered into an agreement to construct and operate the RWF, (formerly referred to as the San Jose/Santa Clara Water Pollution Control Plant). Under the terms of the agreement, the cities own an undivided interest in the RWF and share in the capital and operating costs on a pro rata basis, determined by the ratio of each city’s assessed valuation to the sum of both cities assessed valuations. Such percentages are determined annually and applied to the capital and operating costs of the RWF, determined on an accrual basis. For the fiscal year ended June 30, 2024, the City’s portion of the plant capacity was approximately 19.855%, which is also its interest in the net position of the RWF.

Zero Waste Energy Development Company Ground Lease
On June 21, 2011, the San Jose City Council approved a ground lease with Zero Waste Energy Development Company (ZWED) to lease a portion of the former Nine Par landfill, which is a part of the San Jose/Santa Clara Regional Wastewater Facility lands. ZWED would lease the property in three phases. Under the terms of the proposed lease, ZWED will lease 40.7 acres from the City of San Jose for an initial term of seven years from the date of execution for all three leaseholds. The base rent for the initial phase (Phase 1) of the property would be payable as a proportional credit against the expenditure of site development costs estimated at $11.8 million or as a payment of $850,000 per year. Rent for the subsequent phases will be based on the amount of organic waste processed at the facility. Over the 30-year life of the lease, the estimate payment is a minimum of $16.5 million. The incoming revenue will be distributed between the City of Santa Clara, City of San Jose, and the tributary agencies to the RWF based on the master agreements with each agency.

South Bay Water Recycling Program
The South Bay Water Recycling Program (SBWR), a regional water reclamation program, is part of an action plan adopted by the Regional Water Quality Control Board (RWQCB) which limits the RWF on the amount of effluent discharged into San Francisco Bay in order to prevent conversion of salt marsh and destruction of endangered species habitat. Flow limits are not included in the current five year permit from the RQWCB.

SBWR has a master plan to guide the continued operation and potential expansion of the SBWR in the absence of the previous regulatory drivers. The master plan was completed in December of 2014 and accepted by the City of San Jose and the Santa Clara Valley Water District during fiscal year 2014-15.

Under the previously approved action plan, SBWR was required to reclaim 21.1 million gallons per day (MGD) of plant effluent for non-potable use by November 1, 1997, (Phase 1) and an additional 24.30 MGD by December 31, 2000 (Phase 2). The action plan also requires assessment of alternatives for potable reuse, including a potable pilot plant to be coordinated with the Santa Clara Valley Water District. In addition to habitat preservation, the project reduces the mass trace contaminates discharged to the San Francisco Bay and provides a reliable source of water to offset potable water demands. The current master plan recognizes that primary drivers for the continued operation and expansion of the recycled water system are based in the need for water supply, rather than wastewater discharge reduction.

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When first built, the SBWR distribution system included approximately 67 miles of pipe, a four million gallon reservoir, a transmission pump station, and two booster pump stations. These facilities were constructed between 1996 and 1998 at a capital cost of approximately $140 million funded by the tributary agencies, grants and bond proceeds. Santa Clara’s share of Phase 1 costs was approximately $20.07 million. Within Santa Clara, seven miles of distribution mains were added to the system in 2010 and 2011 and the entire SBWR distribution system now consists of over 140 miles of pipeline.

Proceeds from the City of San Jose 1995 Series A and B Bonds and other funds were used to pay for the City of San Jose’s share of Phase 1. The City contributed existing capital reserves, existing recycled water distribution system, and additional construction of system extensions. Other sources for funding of Phase 1 include U.S. Bureau of Reclamation grants, State of California Revolving Fund loans, $6.45 million transferred in fiscal year 1995 from the Clean Water Financing Authority to the City of San Jose Wastewater Treatment Plant Capital Fund, and cash contributions from other participating agencies. The 2010 and 2011 extensions of the distribution system were funded in part by a combination of grants from the American Recovery and Reinvestment Act of 2009 (ARRA) and the United State Bureau of Reclamation totaling $10.4 million.

In June 1997, the RWQCB approved the Proposed Revision to the South Bay Action Plan (the Plan), which describes the projects necessary to reduce average dry weather effluent flow from the RWF to below 120 MGD and protect salt marsh habitat for endangered species in the South Bay as required by RWQCB Order 94-117.

These projects include expanding the Phase 1 non-potable water distribution system by extending additional piping, placing greater emphasis on water conservation programs, reducing infiltration inflow, augmenting stream flow, and creating wetlands. The estimated costs of $127.5 million has been funded through a combination of State Revolving Fund loans, Equipment Replacement Reserves, Sewage Treatment Plant Connection Fees, federal grants, in-kind services and cash contributions.

F. M-S-R Public Power Agency (MSR PPA)
MSR PPA is a joint power agency formed in 1980 by the Modesto Irrigation District, the City and the City of Redding, California, to develop or acquire and manage electric power resources for the benefit of the members.

The personnel of its members and contract professional staff perform the administrative and management functions of MSR PPA. The member’s income and expense sharing ratio is as follows: Modesto Irrigation District – 50%; City of Santa Clara – 35%; and City of Redding – 15%.

Prior to fiscal year ended December 31, 2020, SVP’s equity in MSR PPA’s net losses exceeds its investments and, therefore, the equity method of accounting for the investment was suspended. As of December 31, 2024, the date of the latest available audited financial statements, SVP was in a positive equity position of $11.4 million. The equity method of accounting of SVP’s investment in MSR PPA was applied. Under the joint exercise of power agreement, which formed MSR PPA, the City is responsible for funding up to 35 percent of MSR PPA’s operating cost, to the extent such funding is necessary. During the year ended June 30, 2025, the City funded its share of operating costs in the Electric Utility Enterprise Fund expenses.

MSR PPA’s principal activity is a 28.8% ownership interest in a 507-megawatt unit of a coal-fired electricity generating plant located in New Mexico (San Juan Plant). The San Juan plant was jointly owned by the Public Service Company of New Mexico (PNM) (38.5%), MSR PPA (28.8%) and other municipal power entities (32.7%). On December 31, 2017, MSR PPA divested its ownership interest in the San Juan plant and no longer receives electric energy or capacity from the San Juan Generating Station.

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In 2006, MSR PPA entered into a Wholesale Purchase and Sale Agreement and a Shaping and Firming Agreement with Avangrid Renewables, Inc. to provide renewable wind energy to the Members from the Big Horn I Wind Energy Project (Big Horn I Project) with a nominal installed capacity of approximately 199.5 MW. The City receives the power purchased by MSR PPA from the Big Horn I Project. The City’s share equates to approximately a 105 MW share of the output. Power deliveries commenced on October 1, 2006 and will continue through September 30, 2026. Through an amendment of the original agreements MSR PPA has an obligation to continue to take the same output through September 30, 2031, or if the Big Horn Project is repowered MSR PPA will have a right of first offer to negotiate a long-term power purchase for such repowered project. The participation in this project is as follows: Modesto Irrigation District – 12.5%; City of Santa Clara – 52.5%; and City of Redding – 35%.

In 2009, MSR PPA entered into a Power Purchase Agreement and Redelivery Agreement with Avangrid Renewables Inc. to purchase additional wind power energy from the same site, called Big Horn II, with a nominal installed capacity of 50 MW for a twenty-year period. Deliveries of energy under this project began on November 1, 2010. The participation in this project is as follows: Modesto Irrigation District – 65%; City of Santa Clara – 35%.

M-S-R PPA San Juan
In 2015, the MSR PPA Commission approved a number of agreements (the “San Juan Restructuring Agreements”) to provide for the interests of MSR PPA and certain other San Juan Participants (the “exiting participants”) in the San Juan Generation Station to be transferred to the remaining San Juan Participants effective December 31, 2017. In addition to the ownership divesture, the San Juan Restructuring Agreements provide for, among other things, the allocation of ongoing responsibility for decommissioning costs, mine reclamation costs and any environmental remediation obligations among the exiting participants and the remaining San Juan Participants, and the establishment and funding of mine reclamation and plant decommissioning trust funds. The San Juan Restructuring Agreements were subsequently executed by all nine San Juan Generation Station owners and PNM Resources Development Company (a non-utility affiliate of PNM) and, following receipt of regulatory approvals, became effective on January 31, 2016. Various other implementing agreements and amendments to existing San Juan project agreements to effect the restructuring have also been executed. Closing of the ownership restructuring of the San Juan Generation Station and the divestiture of MSR PPA’s interests in San Juan Unit No. 4 was completed on schedule on December 31, 2017.

Demolition of the San Juan Generation Station started in 2025 with completion estimated in 2026.

G. M-S-R Energy Authority (MSR EA)
MSR EA is a joint power agency formed in 2008 by the Modesto Irrigation District, the City of Santa Clara, and the City of Redding, California, to develop or acquire and manage natural gas resources for the benefit of the members. The personnel of its members and contract professional staff perform the administrative and management functions of MSR EA. The member’s income and expense sharing ratio is as follows: Modesto Irrigation District – 33.3%; City of Santa Clara – 33.4%; and City of Redding – 33.3%.

The City’s equity in MSR EA’s net losses exceeds its investment and, therefore, the equity method of accounting for the investment has been suspended. As of December 31, 2024, the date of the latest available audited financial statements, the City’s unrecognized share of member’s deficit of MSR EA was $27.2 million.

Under the joint exercise of power agreement, which formed MSR EA, the City is responsible for funding up Draft

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NOTE 12 – PARTICIPATION IN JOINT VENTURES (continued)

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to 33.4% of MSR EA’s operating cost, to the extent such funding is necessary. During the year ended June 30, 2025, the City funded its share of operating in the Electric Utility Enterprise Fund expenses.

In 2009, the City of Santa Clara, along with the Cities of Modesto and Redding participated in the M-S-R Energy Authority Gas Prepay Project. The Gas Prepay Project provides the City of Santa Clara, through a Gas Supply Agreement with MSR EA dated September 10, 2009, a secure and long-term supply of natural gas of 7,500 MM Btu (Million British thermal unit) daily or 2,730,500 MM Btu annually through December 31, 2012, and 12,500 MM Btu daily, or 4,562,500 MM Btu annually thereafter until September 30, 2039. The agreement provides this supply at a discounted price below the spot market price (the Pacific Gas & Electric City gate index) over the next 30 years. As of December 31, 2024, bonds issued by MSR EA to finance the City’s share of the Gas Prepay Project were outstanding in the principal amount of $474,530,000. These bonds were initially sold on August 27, 2009. Under the Gas Supply Agreement, MSR EA will bill the City for actual quantities of natural gas delivered each month on a “take-and-pay” basis. MSR EA has contracted with Citigroup Energy, Inc. (“CEI”) to use the proceeds of the Gas Prepay bond issue to prepay CEI for natural gas. CEI has guaranteed repayment of the bonds, and responsibility for bond repayment is non-recourse to the City of Santa Clara. Moreover, any default by the other Gas Prepay Project participants is also non-recourse to the City.

H. Silicon Valley Animal Control Authority
The City is a member of the Silicon Valley Animal Control Authority, (SVACA), established in 2000 to deliver animal control and sheltering services to three communities: the cities of Santa Clara, Campbell, and Monte Sereno. The City of Mountain View joined in 2012 and the Town of Los Gatos joined in 2025. SVACA provides field and shelter services and staffing to support adoption and spay/neuter programs. SVACA purchased and retrofitted an existing cold-shell office building in Santa Clara that became a fully operating animal shelter. The shelter opened in the third quarter of 2006. SVACA is governed by a Board of Directors comprised of one appointed Councilmember from each of the five member cities.

During the fiscal year ended June 30, 2025, the City of Santa Clara contributed $1,132,981 to SVACA. The City’s equity interest in SVACA was $5,287,765 at June 30, 2024 (the most recent audited information available). Audited financial statements are available from SVACA, located at 3370 Thomas Road, Santa Clara, CA 95051.

NOTE 13 – RETIREMENT PLAN – DEFINED BENEFIT PENSION PLAN A. Plan Description
The City contributes to the California Public Employees Retirement System (CalPERS), an agent multiple- employer defined benefit plan, which is a public employee retirement system that acts as a common investment and administrative agent for participating public entities within the State of California. CalPERS offers a menu of benefit provisions and other requirements that are established by State statutes within the Public Employee Retirement law. The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. CalPERS issues a separate Annual Comprehensive Financial Report. Copies of the CalPERS’ annual financial report may be obtained from the CalPERS website at www.calpers.ca.gov.

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The City’s defined benefit pension plans for Miscellaneous and Safety employees with CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. All permanent (full-time and part-time) and eligible “as-needed” hourly City employees are required to participate in CalPERS. Employees fall under two categories, Classic and PEPRA. Employees hired on or before December 31, 2012, are considered Classic PERS members. Employees hired on or after January 1, 2013, fall into the PEPRA PERS members.

B. Pension Plan Benefits
On September 12, 2012, the State of California passed Assembly Bill (AB) 340, which created the Public Employees’ Pension Reform Act (PEPRA). PEPRA implemented new benefit formulas and final compensation period, as well as new contribution requirements for new employees hired on or after January 1, 2013, who meet the definition of new member under PEPRA. Please refer to the Pension Reform section of the CalPERS website for more information regarding when an employee will be considered a new member under PEPRA.

Benefits for employees in the Miscellaneous Plan and Safety Plan vest after five years of CalPERS credited service. The retirement benefits are based on the retiree’s age, years of CalPERS credited service, and benefit factor of 2.7% at 55 for the Classic Miscellaneous Plan members and 3% at 50 for the Classic Safety Plan members. For members under PEPRA, the benefit factor is reduced to 2% at 62 for the Miscellaneous Plan and 2.7% at 57 for the Safety Plan.

Miscellaneous Plan
Participants in this plan are eligible for service retirement and receive graduated benefits upon attaining the age of 50 and with at least five years of credited service with a CalPERS employer. The service retirement benefit is a monthly allowance equal to the product of the benefit factor (2.7% at 55 for Classic members or 2% at 62 for PEPRA members), years of service, and final compensation (monthly average of member’s highest 12 or 36 (for new members) consecutive months full-time equivalent monthly pay). The service retirement benefit for this group is not capped. The compensation limit for Classic members for the 2025 calendar year is $350,000. Employees with membership dates prior to July 1, 1996, are not impacted by this limit. The compensation limit for PEPRA for calendar year 2025 is $155,081 for employees covered by Social Security and is adjusted annually with the CPI for all Urban Consumers.

Safety Plan
Participants in this plan are eligible for service retirement upon attaining the age of 50 and with at least five years of credited service with a CalPERS employer. The service retirement benefit is a monthly allowance equal to the product of the benefit factor (3% at 50 for Classic members or 2.7% at 57 for new members), years of service, and final compensation. For Classic Fire Safety employees, the final compensation is the monthly average of member’s highest 36 consecutive months full-time equivalent monthly pay for both Classic and new members, and for Classic Police Safety employees, it is the monthly average of the member’s highest 12 or 36 (for new members) consecutive months full-time equivalent monthly.

The service retirement benefit for the Safety Plan group is capped at 90% of final compensation for the Classic members. PEPRA members have an annual compensation limit on reportable earnings. The compensation limit for calendar year 2025 is $186,096 for employees not covered by Social Security and is adjusted annually with the CPI for all Urban Consumers.

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The Plans provisions and benefits in effect at June 30, 2025 are summarized as follows:

Hire date
Prior to
January 1,
2013
On or After
January 1,
2013
Prior to
January 1,
2013
On or After
January 1,
2013
Benefit formula 2.7% @ 55 2.0% @ 62 3.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 50 - 55 52 - 67 50 50 - 57
Monthly benefits, as a % of
eligible compensation 2.00% - 2.70% 1.00% - 2.50% 3.00% 2.00% - 2.70% Required employee contribution rates 8.00% 7.00%
Public Safety - Fire 9.00% 11.75%
Public Safety - Police 9.00% 11.75%
Required employer contribution rates 11.83% 11.83% 23.28% 23.28% Required unfunded liability contribution
Miscellaneous Safety
$29,601,760 $26,772,481
Beginning in fiscal year 2015-16, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis or the City can elect a discounted lump sum payment option, which the City elected to do in fiscal year 2024-25. The City’s required contribution for the miscellaneous plan’s unfunded liability was $29,601,760 in fiscal year 2024-25. The City’s required contribution for the safety plan’s unfunded liability was $26,772,481 in fiscal year 2024-25.

Employees Covered
At the valuation date, June 30, 2023, and measurement date June 30, 2024, the following employees were covered by the benefits terms for each Plan:

Miscellaneous Safety
1,093 519
606 92
Active employees 715 278
Total 2,414 889
Inactive employees or beneficiaries currently
receiving benefits
Inactive employees entitled to but not yet
receiving benefits

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C. Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2025, the City’s contributions to the miscellaneous and safety plans were $41,820,152 and $40,969,901, respectively.

D. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plans’ fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
(1)
Post Retirement Benefit Increase
Mortality
(2)
(1) Net of pension plan investment and administrative expenses; including inflation.

All Plans
June 30, 2023
June 30, 2024

6.90%

2.30%
Entry-Age Normal Cost Method
Derived using CalPERS' membership data for all funds
(2)

The morality table used was developed based on CalPERS specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Pre-retirement and post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS' November 2021 experience study report available on CalPERS' website.

The lesser of Contract COLA or 2.3% until Purchasing
Power applies, 2.3% thereafter

2.80%
Varies by Entry-Age and Service

6.90%

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Discount Rate
The discount rate used to measure the total pension liability for the Plan was 6.90%. The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made statutorily required rates, actuarially determined. Based on those assumptions, each Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members for all plans in the PERF. Therefore, the long-term expected rate of return on plan investments was applied to all period of projected benefit payments to determine the total pension liability for each Plan.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long- term market return expectations. Using historical returns of all the funds’ assets classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

The table below reflects the real rates of return by asset class.

Asset Class
(1)
Assumed Asset
Allocation
Real Return
(1)&(2)
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study.

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E. Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan follows:

Miscellaneous Plan:

Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability/(Asset)
Balance at June 30, 2023 measurement date 906,859,415$ 571,762,571$ 335,096,844$ Changes in the year:

Service cost 16,950,345 - 16,950,345 Interest on the total pension liability 61,850,719 - 61,850,719 Changes of benefit terms - - - Differences between expected and actual
experience 7,257,508 - 7,257,508 Contributions - employer - 37,637,166 (37,637,166) Contributions - employees - 7,142,463 (7,142,463) Net investment income - 55,366,388 (55,366,388) Benefit payments, including refunds of
employee contributions (52,409,738) (52,409,738) - Administrative expense - (465,245) 465,245 Net changes 33,648,834 47,271,034 (13,622,200) Balance at June 30, 2024 measurement date 940,508,249$ 619,033,605$ 321,474,644$ Increase (Decrease)

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NOTE 13 – RETIREMENT PLAN – DEFINED BENEFIT PENSION PLAN (continued)

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Safety Plan:

Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability/(Asset)
Balance at June 30, 2023 measurement date 965,985,937$ 614,911,796$ 351,074,141$ Changes in the year:

Service cost 18,686,372 - 18,686,372 Interest on the total pension liability 66,364,978 - 66,364,978 Changes of benefit terms - - - Differences between expected and actual
experience 13,390,967 - 13,390,967 Contributions - employer - 36,813,747 (36,813,747) Contributions - employees - 6,600,757 (6,600,757) Net investment income - 59,091,657 (59,091,657) Benefit payments, including refunds of
employee contributions (53,817,662) (53,817,662) - Administrative expense - (500,356) 500,356 Net changes 44,624,655 48,188,143 (3,563,488) Balance at June 30, 2024 measurement date 1,010,610,592$ 663,099,939$ 347,510,653$ Combined Total 1,951,118,841$ 1,282,133,544$ 668,985,297$ Increase (Decrease)

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability 438,761,781$ 481,446,101$
Current Discount Rate 6.90% 6.90%
Net Pension Liability 321,474,644$ 347,510,653$
1% Increase 7.90% 7.90%
Net Pension Liability 224,018,260$ 237,533,276$
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

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F. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2025, the City recognized pension expense of $44,875,423 for the Miscellaneous Plan and $54,099,819 for the Safety Plan, for total pension expense of $98,975,242.

At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Plan:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to measurement date 41,820,152$ -$ Changes of assumptions 2,858,518 -
Differences between expected and actual experience 8,009,365 (423,662) Net differences between projected and actual earnings
on pension plan investments 8,144,613 -
Total 60,832,648$ (423,662)$

Safety Plan:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to measurement date 40,969,901$ -$ Changes of assumptions 6,346,611 -
Differences between expected and actual experience 16,048,912 (829,798) Net differences between projected and actual earnings
on pension plan investments 9,304,114 -
Total 72,669,538$ (829,798)$
Combined Total 133,502,186$ (1,253,460)$
The reported $41,820,152 for the Miscellaneous Plan and $40,969,901 for the Safety Plan deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of Draft

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NOTE 13 – RETIREMENT PLAN – DEFINED BENEFIT PENSION PLAN (continued)

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resources and deferred inflows of resources related to pension will be recognized as pension expense as follows:

Measurement Period
Ended June 30
Miscellaneous Plan
Annual Amortization
Safety Plan
Annual Amortization
2025 6,117,416$ 12,268,419$
2026 17,643,007 22,160,623
2027 (1,928,434) (142,346)
2028 (3,243,155) (3,416,857)
NOTE 14 – RETIREMENT PLAN - DEFINED CONTRIBUTION PLAN
The City’s Public Agency Retirement System Plan (PARS Plan) is a compulsory retirement plan that qualifies under Section 401 of the Internal Revenue Code covering City employees who are not members of CalPERS.

Under the provisions of the PARS Plan, the City makes no contributions; however, all administrative costs of the plan are funded by the City. The PARS Plan administrator is Phase II Systems. The total assets of the PARS Plan are held in trust for the employees and are not included in the City’s assets or equity.

NOTE 15 – DEFERRED COMPENSATION PLAN
City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, death or in an emergency as defined by the Internal Revenue Service.

The Plan is part of the public agency agent multiple-employer defined contribution plan that is administered by Nationwide. Benefit provisions under the Plan are established by City Resolution.

The laws governing deferred compensation plan assets require plan assets to be held by a trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City’s property and are not subject to City control, they have been excluded from these financial statements.

The City has no liability for any losses incurred by the Plan and does not participate in any gains, but does have the duty of due care that would be required of an ordinary prudent investor. The City has a contract with Nationwide to manage and invest the assets of the Plan. The administrator pools the assets of the Plan with those of other participants and does not make separate investments for the City. The assets in the Plan are the sole property of the participants or their beneficiaries. Since the assets held under the Plan are not the City’s property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements. The Plan requires investments to be stated at fair market value and it requires all gains and losses on Plan investments to accrue directly to participant accounts.

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NOTE 15 – DEFERRED COMPENSATION PLAN (continued)

129

Under the terms of the Memorandum of Understanding (MOU) with the Police Officers Association (Unit 2) and the Unclassified Police Management Association (Unit 9A), the City is required to make a monthly contribution of $150 to each employee who is enrolled in the City’s Section 457 deferred compensation plan.

Under the terms of the MOU with the Public Safety Non‐Sworn Employees Association (Unit 10), the City is required to make a monthly contribution of $300 to each employee who is enrolled in the City’s Section 457 deferred compensation plan.

Under the terms of the MOU with the Unclassified Fire Management Employees (Unit 9B), the City is required to make a monthly contribution of $230 to each employee who is enrolled in the City’s Section 457 deferred compensation plan.

Under the terms of the MOU with the Engineers of the City of Santa Clara (Unit 4), the City is required to make a monthly contribution of $166 to $330 to employees who are enrolled in the City’s Section 457 deferred compensation plan.

Under the terms of the MOU with the Santa Clara Firefighters (Unit 1), the City is required to make a monthly contribution of $175 to each employee who is enrolled in the City’s Section 457 deferred compensation plan.

Under the terms of the MOU with the Unclassified Management Employees Association (Unit 9), the City is required to make a monthly contribution of $300 to each employee who is enrolled in the City’s Section 457 deferred compensation plan.

The City’s required contributions for the year ended June 30, 2025 totaled $1,390,568.

NOTE 16 – OTHER POST EMPLOYMENT BENEFITS
A. Plan Description
The City’s agent multiple-employer defined benefit Other Post Employment Benefit (OPEB) Plan, which was established by City Council in fiscal year 2007-08 in accordance with GAAP, provides reimbursements to retirees for qualified expenses. Employees who have retired from the City with at least ten years of service and meet certain criterion based upon retirement date, household income in the most recent calendar year and age are entitled to reimbursements for qualified expenses. Annual maximum reimbursement amounts differ depending on when an employee retired from City service. The majority of retirees may be eligible for a maximum of $5,046 in annual reimbursements. Amendments to benefit provisions are negotiated by the various bargaining units at the City and must be approved by Council. In fiscal year 2007-08, the City established an irrevocable exclusive agent multiple-employer defined benefit trust which is administered by Public Agency Retirement Services (PARS). The City is the Plan administrator, and PARS administers the investment trust for the City’s Plan. The trust is used to accumulate and invest assets necessary to reimburse retirees. Separate financial reports are issued by PARS for the OPEB Plan Trust. The report can be obtained by writing to PARS at 4350 Von Karman Avenue, Suite 100, Newport Beach, CA 92660, or by calling 1-800- 540-6369.

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the OPEB plan Draft

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and additions to and deduction from the OPEB’s fiduciary net position have been determined on the same bases. For this purpose OPEB benefit payments are recognized when currently due and payable in accordance with the benefits terms. Investments are report at fair value.

Generally accepted accounting principles require that the reporting results must pertain to liability and asset information within certain defined timeframes. For the fiscal year 2024-25, the following time frames were used.

Measurement Date
Measurement Period
Actuarial valuation date
(1)
June 30, 2025
June 30, 2024
July 1, 2024 to June 30, 2025
(1) Update procedures were used to roll forward the Total OPEB liability from the valuation date to the measurement date.

B. Plan Membership
As of June 30, 2025, membership in the plan consisted of the following:

Number of
Covered Employees
657
258
Active employees 1,013
Total 1,928
Inactive employees currently receiving benefits
Inactive employees entitled to but not yet receiving
benefit payments

C. Contributions
The OPEB Plan trust annual contributions are based upon actuarial determine contributions. The contribution requirements are established and may be amended by the City Council. Plan members do not make contributions to the plan; the plan is funded entirely by employer contributions. For the fiscal year ending June 30, 2025 the City’s cash contributions were $4,463,303 in payments to the trust, $15,846 in administrative expenses paid outside of the trust, and the estimated implied subsidy was $1,011,000 for total contributions of $5,490,149.

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NOTE 16 – OTHER POST EMPLOYMENT BENEFITS (continued)

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D. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2025 and the total OPEB liability used to calculate the Net OPEB liability was determined by an actuarial valuation dated June 30, 2024, rolled forward to June 30, 2025 using standard actuarial methods, based on the following actuarial methods and assumptions:

Actuarial Assumptions
Actuarial Assumption
Actuarial valuation date
Discount rate
Inflation
Salary increases
Investment rate of return
Funding policy
Mortality, Disability,
Termination, and Retirement
Mortality Improvement
Healthcare cost trend rates
Healthcare participation for future
retirees - Cash subsidy
Healthcare participation for future
retirees - PEMHCA implied subsidy
PEMHCA minimum only: Currently covered: 50%, Waived: 25% Other plans: Currently covered: 80%, Waived: 40%
Significant Actuarial Assumptions Used in Total OPEB Liability Crossover analysis showed benefit payments always fully funded by plan assets
June 30, 2025 Measurement Date
June 30, 2024

4.50% at June 30, 2025 and 2024

2.50%
Medicare (Non-Kaiser) - 6.90% for 2026, scaling down to 3.45% in year 2076
PARS portfolio: Moderately Conservative
Non-Medicare - 7.90% for 2026, scaling down to 3.45% in year 2076 Mortality projected fully generational with Scale MP-2021 Aggregate 2.75%
PEMHCA minimum only: Currently covered: 50%, Waived: 25% Other plans: Currently covered: 80%, Waived: 25%
CalPERS 2000-2019 Experience Study
Full pre-funding to PARS trust

4.50% at June 30, 2025 and 2024
Medicare (Kaiser) - 5.65% for 2026, scaling down to 3.45% in year 2076

E. Discount Rate
The discount rates used to measure the total OPEB liability was 4.50% as of June 30, 2025. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rate equal to the actuarially determined contributions rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.

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NOTE 16 – OTHER POST EMPLOYMENT BENEFITS (continued)

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Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
Global Equity 30% 4.56%
Mutual Funds - Fixed Income 65% 0.78%
Cash and equivalent 5% -0.50%
100%
Expected Inflation 2.50%
Discount Rate 4.50%

F. Changes in the OPEB Liability
The changes in the Net OPEB liability and Fiduciary Net Position are as follows:
2025 2024
Total OPEB Liability $ 73,464 $ 69,211 Fiduciary Net Position (38,651) (33,513)
Net OPEB Liability 34,813$ 35,698$
Plan Fiduciary Net Position as a
percentage of the Total OPEB Liability 52.6% 48.4%
Net OPEB Liability
(In Thousands)

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NOTE 16 – OTHER POST EMPLOYMENT BENEFITS (continued)

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The changes in Net OPEB details as follow:

Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability/(Asset)
Balance at June 30, 2024 measurement date 69,210$ 33,512$ 35,698$ Changes in the year:

Service cost 2,367 - 2,367 Interest 3,142 - 3,142 Differences between expected and actual
experience 2,281 - 2,281 Change in Assumption - - - Contributions - employer
(1)
- 5,490 (5,490)
Net investment income - 3,306 (3,306) Benefit payments (3,536) (3,536) - Administrative expense - (121) 121 Net changes 4,254 5,139 (885) Balance at June 30, 2025 measurement date 73,464$ 38,651 $ 34,813$ (1) Includes implied subsidy of $1,054 thousand
Increase (Decrease)
Changes in Net OPEB Liability
(In Thousands)

G. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following table presents the net OPEB liability of the Plan as of June 30, 2025, calculated using the discount rate of 4.50%, as well as what the plan’s net OPEB liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher than the current rate. 1% Decrease Current Rate 1% Increase
(3.50%) (4.50%) (5.50%)
Net OPEB Liability 44,140$ 34,813$ 27,062$ Sensitivity of Net OPEB Liability to Changes in Discount Rate (In Thousands)

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025

NOTE 16 – OTHER POST EMPLOYMENT BENEFITS (continued)

134

H. Sensitivity of the Net OPEB Liability to Healthcare Cost Trend Rates The following table presents the net OPEB liability of the City, as of June 30, 2025, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% point lower or 1% point higher than the current rate.
1% Decrease Current Rate 1% Increase
Net OPEB Liability 25,396$ 34,813$ 46,467$ Sensitivity of Net OPEB Liability to Changes in Healthcare Care Trend Rates (In Thousands)

I. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB For the year ended June 30, 2025, the City recognized OPEB expense as follows:
2025
Fund level expense $ 4,479
Actuarial Expense (328)
OPEB Expense 4,151$
OPEB Expense
(In Thousands)

As of fiscal year ended June 30, 2025, the City reported deferred outflows as of resources related to OPEB from the following sources.

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Changes of assumptions 352$ 386$
Differences between expected and actual experience 1,925 907 Net differences between projected and actual earnings
on OPEB plan investments - 901
Total 2,277$ 2,194$
Deferred Outflows and Inflows Balance
(In Thousands)

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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025

NOTE 16 – OTHER POST EMPLOYMENT BENEFITS (continued)

135

Amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

For the Year ending June 30 Amount
2026 632$
2027 (450)
2028 (564)
2029 (34)
2030 356
Thereafter 143
Recognition of Deferred Outflows and Inflows of Resources in Future OPEB Expense (In Thousands)

NOTE 17 – ELECTRIC UTILITY - SILICON VALLEY POWER (SVP) The City’s Electric Utility Department provides electricity to City residents and businesses under the name Silicon Valley Power (SVP).

A. Long-term Power Purchase Contracts
The City purchases wholesale electric power from various participants of the Western Systems Power Pool (WSPP), NCPA, MSR Public Power Agency (Note 12), Western Area Power Administration, and other sources to supply the power requirements of the City’s electric utility customers under long-term power purchase agreements (PPAs). The City actively manages the financial risks inherent in these PPAs, including the risks arising from the changing spot market prices that move above and below the contract prices and from contract disputes that may arise from time to time. The proceeds and costs related to generation, either owned or under PPAs, except ancillary services are included in enterprise fund materials, services and supplies expense and excluded from wholesale resources purchases and sales.

B. Restructuring of the California Electric Industry
Deregulation Legislation and Direct Access
The passage of AB1890 in 1998 triggered fundamental changes in the structure of the electric industry in California. Generally, AB1890 provided for creation of the California Power Exchange (Cal PX), which was to be a clearinghouse for energy transactions among investor-owned utilities, independent generators and power marketers, who in turn would serve so called direct-access customers. AB1890 also created the California Independent System Operator (CAISO), which was to manage the state’s bulk transmission grid.

However, in 2000 and 2001, the price of electricity at the Cal PX became extremely high, and investor-owned utilities were unable to pay for the energy that they needed from the Cal PX. Eventually the Cal PX filed for bankruptcy and was dismantled. Investor-owned utility PG&E and several energy marketers would also file for bankruptcy and over a decade of litigation ensued.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 17 – ELECTRIC UTILITY – SILICON VALLEY POWER (SVP) (continued)

136

The CAISO, however, continues to manage the state’s bulk electric system and the day-ahead and day-of markets, and it has implemented various price controls and tariffs in an effort to avoid repeating the mistakes of 2000 and 2001. Along with balancing control area responsibility, the CAISO has also announced that it will take on the role of reliability coordinator for the region.

Energy Wholesale Trading and Risk Management
SVP participates in the wholesale gas and power market and the CAISO’s centralized market. Since CAISO’s Market Redesign and Technology Upgrade (MRTU), CAISO has become the ultimate buyer and seller in the California day ahead market. Therefore, SVP engages in the trading of commodity forward contracts (gas and electric energy contracts) to secure fuel supply and hedge daily power purchase/sales from/to CAISO. The primary type of forward contracts SVP currently engages in is the Futures contracts SVP transacts on Intercontinental Exchange (ICE). The Futures transactions for both natural gas and power are recorded on cash basis under Wholesale Trading activities starting fiscal year 2022-23. Activities during the fiscal year were substantially considered hedging transactions and, as such, have been accounted for using the settlement method of accounting. Accordingly, related gross sales and purchases totaling $14.6 million and $8.5 million, respectively, for fiscal year ended June 30, 2025, have been separately reported on the statement of revenues, expenses and changes in net position.

The restructured electric wholesale market exposes SVP to various risks including market, credit and operational risks. Active and effective management of these risks associated with the power trading activity is critical to its continued success and contribution to the entire utility. A Risk Management Committee, separate from the units that create the risk exposures, overseen by a Risk Oversight Committee that reports ultimately to the City Council, administers and monitors compliance with the risk policies and procedures on a regular basis. The City and SVP believe that it has the resource commitment, and effective policies and procedures, and is continuing to improve the control structure and oversight for evaluating and controlling the market and credit risks to which it is exposed.

Credit Arrangements
The City of Santa Clara electric utility maintains credit policies, procedures, and systems that help mitigate credit risk and minimize overall credit risk exposure. The policies include transacting only with investment grade counterparties, evaluating potential counterparties’ financial condition and assigning credit limits as applicable. These credit limits are established based on risk and return considerations under terms customarily available in the industry. Additionally, SVP is a signatory to the WSPP netting agreement supplement and otherwise, enters into master netting arrangements whenever possible and, where appropriate, obtains collateral prior to trade execution. Master netting agreements incorporate rights of setoff that provide for the net settlement of subject contracts with the same counterparty in the event of default.

NOTE 18 – NET POSITION/FUND EQUITY
Net Position is measured on the full accrual basis and presented in the Government-wide Financial Statements, while Fund Balance is measured on the modified accrual basis and presented in the Governmental Funds Financial Statements.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 18 – NET POSITION/FUND EQUITY (continued)

137

A. Government-wide Financial Statements - Net Position
Net Position is the excess of all the City’s assets and deferred outflow of resources over all its liabilities and deferred inflow of resources, regardless of fund. Net Position is divided into three captions. These captions apply only to Net Position, which is determined only at the government–wide level, and are described below:

Net investment in capital assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects, debt service requirements, and redevelopment funds restricted to low and moderate-income purposes.

Unrestricted describes the portion of Net Position which is not restricted as to use.

B. Governmental Fund Financial Statements - Fund Balances The City categorizes fund balance in accordance with GAAP. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:

Nonspendable Fund Balance
Amounts that cannot be spent either because they are in a nonspendable form or are required to be maintained intact.

Restricted Fund Balance
Amounts that are constrained to specific purposes by federal, state, county, local laws, or externally imposed conditions by grantors or creditors.

Committed Fund Balance
Amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council, the City’s highest level of decision-making authority, through resolutions. These committed amounts cannot be used for any other purpose unless the Council removes or changes the specific uses through the same type of formal action taken to establish the commitment. These Council actions must occur prior to June 30th of the applicable fiscal year.

Assigned Fund Balance
Amounts that are constrained by the City’s intent are to be used for specific purposes, but are neither restricted nor committed. The City Council delegated the authority to assign amounts to be used for specific purposes to the City Manager per Ordinance 1784, September 16, 2003.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 18 – NET POSITION/FUND EQUITY (continued)

138

Unassigned Fund Balance
These are either residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories in the General Fund, or negative balances in all other funds. The Unassigned Fund Balance includes the Budget Stabilization (Emergency) and Capital Projects Reserves, and other undesignated fund balances. The balances in these accounts are $72.7 million, $13.4 million, and $77.1 million, respectively. Additional information is described in the Stabilization Arrangement section of this note.

Under the City’s encumbrance system of accounting, a portion of fund balance that has been encumbered for a specific future use is classified in the appropriate fund balance component based on the nature of the encumbrance.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 18 – NET POSITION/FUND EQUITY (continued)

139

Fund Balance Classification
Non-Major Fund Balance
General Santa Clara Governmental June 30,
Fund Housing Successor Funds 2025
Nonspendable:

Receivables, inventory & prepaid 37,104$ -$ -$ 37,104$ Leases 8,259,157 - - 8,259,157 Total Nonspendable 8,296,261 - - 8,296,261 Restricted For:

Gas tax programs - - 4,185,702 4,185,702 Housing & Community - 6,878,990 22,629,099 29,508,089 Maintenance districts - - 2,380,868 2,380,868 Operating grants - - 4,983,415 4,983,415 Debt service - - 821,439 821,439 Environmental enforcements 45,065 - 994,881 1,039,946 Parks & recreation - - 50,545,462 50,545,462 Streets and highway - - 50,062,752 50,062,752 Public safety 1,078,982 - - 1,078,982 Library 19,488 - - 19,488 Public facilities 267,445 - 2,655,927 2,923,372 Donations 859,072 - 351,791 1,210,863 Pension rate stabilization program 37,546,639 - - 37,546,639 Storm drain - - 324,510 324,510 Total Restricted 39,816,691 6,878,990 139,935,846 186,631,527 Committed to:

Housing programs - - 1,106,868 1,106,868 Parks & recreation - - 14,166,112 14,166,112 Streets and highway - - 11,756,181 11,756,181 Storm drain - - 5,286,951 5,286,951 Public safety - - 1,836,773 1,836,773 Library - - 653,160 653,160 Public facilities - - 26,707,731 26,707,731 Building inspection - - 40,454,354 40,454,354 Land investment 12,678,089 - - 12,678,089 Historical preservation 97,888 - - 97,888 Total Committed 12,775,977 - 101,968,130 114,744,107 Assigned to:

General Government 16,909,639 - - 16,909,639 Other purposes 69,870 - - 69,870 29,261 Total Assigned 16,979,509 - - 16,979,509 Unassigned: 163,215,158 - - 163,215,158 Total Fund Balances 241,083,596$ 6,878,990$ 241,903,976$ 489,866,562$ Major Funds

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 18 – NET POSITION/FUND EQUITY (continued)

140

C. Fund Balance Policy
When both restricted and unrestricted funds are available for expenditure, the City’s Fund Balance Policy reduces all Governmental Funds Balances in the following order: Restricted, Committed, Assigned, and Unassigned fund balances unless disallowed by City Council or legal requirements.

Stabilization Arrangement
Maintaining financial stabilization is a necessity for sound financial management and fiscal accountability. Its purpose is to ensure funds are available to cover occasional budgetary shortfalls (i.e., when general unrestricted revenues decline) or other unexpected urgent events. The City’s Budget Stabilization Reserves (Emergency) and Capital Projects Reserves are maintained for these purposes. As of June 30, 2025, the Budget Stabilization and Capital Projects Reserves were $72.7 million and $13.4 million, respectively, and are a component of the General Fund’s Unassigned Fund Balance.

In 1985-86, the City Council established a policy regarding the City's General Contingency Reserve, under which two separate reserves were established.
 The Budget Stabilization Reserve is set aside primarily for weathering economic downturns, emergency financial crisis, or disaster situations. The reserve target is equal to the cost of the City’s General Fund operations for three months (90-days or 25% General Fund operating budget). Given the significant impacts of COVID-19 on the City’s budget, the City Council Adopted the FY2021-22 budget principles that allow this reserve to drop to 15% of budgeted expenditures.  The Capital Projects Reserve, earmarks funds for a five-year capital improvement program. The minimum target for this reserve is $5 million.

One of the strategic objectives on the 2017-18 Council Goals and Strategic Objectives list is to continue to replenish City reserves and maintain strong, fiscally-sound management policies of City revenues with long term goals in mind.

Pension Rate Stabilization Program Trust
In fiscal year 2016-17, the City established an irrevocable trust account with PARS to pre-fund retirement plan obligations. The contributions placed in the trust will reduce the City’s net pension liability for financial purposes as required by GAAP. As of June 30, 2025, the balances in the pension rate stabilization program trust for the General Fund and Enterprise Funds are listed as follows:

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 18 – NET POSITION/FUND EQUITY (continued)

141

Pension Rate
Stabilization
Balances
General Fund: 37,546,639$
Enterprise Funds:

Electric Utility 11,792,344
Water Utility 2,255,660
Sewer Utility 1,124,084
Water Recycling 197,081
Solid Waste 551,088
53,466,896$
Fund Name

D. Net Position/Fund Balance Deficits
The funds listed below had an accumulated deficit as of June 30, 2025:

Accumulated
Deficit
Internal Service Funds:

Workers’ Compensation Insurance Claims 10,321,674$
Fund Name

The Workers’ Compensation Insurance Claims Internal Service Fund accumulated deficit is primarily due to the incurred but not yet recognized claims’ liabilities and are expected to be offset by future charges to the General Fund and the enterprise funds.

E. Prior Period Adjustments
Effective July 1, 2024, the City implemented GASB Statement No. 101, Compensated Absences, which establishes updated recognition and measurement criteria for certain types of leave benefits, including vacation, sick leave, and other paid time off. As a result of this implementation, the City evaluated its compensated absences liability and determined that adjustments were required to align with the new standard.

Accordingly, beginning net position as of July 1, 2024, was restated to reflect the cumulative effect of applying GASB 101. The adjustment resulted in an increase (or decrease) in the compensated absences liability and a corresponding decrease (or increase) in beginning net position.

During fiscal year 2024–25, the City implemented an accounting policy change in the recognition of unavailable revenue related to long-term loan programs. Previously, unavailable revenue was recognized in the entity-wide financial statements upon the housing developer’s completion of the certificate of occupancy.

Under the revised policy, unavailable revenue is recognized when cash is disbursed to the developers. The Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 18 – NET POSITION/FUND EQUITY (continued)

142

cumulative effect of this change increased the beginning net position of governmental activities by $25,183,246 as of July 1, 2024.

The effect of these adjustments and restatements are shown below:

Beginning Net Position,
as previously reported on
June 30, 2024
Adjustment for
Implementation of
GASB101
Adjustment for
Accounting Policy
Change - Unavailable
Revenues
Beginning Net
Position, as restated
on June 30 , 2024
Governmental Activities $ 721,823,971 $ (7,124,240) $ 25,183,246 $ 739,882,977 Internal Service Funds:

Automotive Services $ 19,983,600 $ (73,108) $ 19,910,492 Information Technology Services (601,769) (124,901) (726,670) $ 19,381,831 $ (198,009) $ 19,183,822 Enterprise Funds
Electric Utility $ 1,292,855,590 $ (2,476,429) $ 1,290,379,161 Water Utility 76,706,248 (110,084) 76,596,164 Sewer Utility 375,113,044 (54,430) 375,058,614 Water Recycling 6,161,019 828 6,161,847 Cemetery 3,374,972 (7,978) 3,366,994 Solid Waste 2,560,249 (17,351) 2,542,898 $ 1,756,771,122 $ (2,665,444) $ 1,754,105,678

Santa Clara Stadium Authority Prior Year Error Correction As discussed in Note 6F, the Santa Clara Stadium Authority’s beginning net position in the financial statements was restated to correct a prior year unearned revenue balance. The net position was increased by $23.1 million in fiscal year 2024-25. The effect of the restatement is shown below:

Beginning Net Position,
as previously reported
on March 31, 2024
Error Correction -
Unearned
Revenue
Beginning Net
Position, as restated
on March 31, 2024
Santa Clara Stadium Authority $ 132,613,452 $ 23,119,995 $ 155,733,447

NOTE 19 – RISK MANAGEMENT
The City is exposed to various risks of losses related to torts, errors and omissions, general liability, injuries to employees and unemployment claims. The City currently reports all of its risk management activities in its Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 19 – RISK MANAGEMENT (continued)

143

Internal Service Funds. Claims, expenditures and liabilities are reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated using actuarial methods or other estimating techniques.

The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims and workers’ compensation claims. The estimated liabilities for general liability and workers’ compensation claims are based on case reserves and include amounts for claims incurred but not reported (IBNR). At June 30, 2025, the estimated claims payable of $31,675,000, consisting of reserves for both reported and IBNR losses, as well as, allocated loss adjustment expenses, have been recorded in the Special Liability and Workers’ Compensation Internal Service Funds, respectively. The claims payable are reported at their present value using expected future investment yield assumptions of 2.5%, and the undiscounted claims at June 30, 2025, totaled $10,917,000 and $24,348,000 for general liability and workers’ compensation claims, respectively.

The estimate of claims due in one year is the City’s best estimate based upon available information which is included in accrued liabilities.

Changes in the reported liability since June 30, 2023 resulted from the following:

Special
Liability
Workers'
Compensation Total
Liability as of June 30, 2023 7,817,000$ 20,303,000$ 28,120,000$ Claims and changes in estimates during fiscal 2024 6,284,583 6,231,024 12,515,607 Claim payments (5,415,583) (5,724,024) (11,139,607) Liability as of June 30, 2024 8,686,000$ 20,810,000$ 29,496,000$ Claims and changes in estimates during fiscal 2025 13,368,885 6,300,220 19,669,105 Claim payments (11,861,885) (5,628,220) (17,490,105) Liability as of June 30, 2025 10,193,000$ 21,482,000$ 31,675,000$ Current Claims Payable 3,022,000$ 4,126,000$ 7,148,000$ Long Term Claims Payable 7,171,000 17,356,000 24,527,000 Liability as of June 30, 2025 10,193,000$ 21,482,000$ 31,675,000$ With respect to the Special Liability accrual of $10.2 million, the City has numerous unsettled lawsuits filed or claims asserted against it as of June 30, 2025. The City has reviewed these claims and lawsuits in order to evaluate the likelihood of an unfavorable outcome to the City and to arrive at an estimate of the amount or ranges of potential loss to the City. As a result of such review, the City has categorized the various claims and lawsuits as “probable,” “reasonably possible,” and “remote” loss contingencies, as defined by current accounting standards.

The City has determined that the City’s probable loss contingencies, which are accrued for as the estimated special liability for claims and lawsuits as of June 30, 2025, are approximately $10.2 million. The final outcome of claims and lawsuits, which have been categorized as reasonably possible loss contingencies, is not Draft

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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 19 – RISK MANAGEMENT (continued)

144

presently determinable and any associated potential loss cannot be estimated. Accordingly, no provision has been made in the accompanying basic financial statements relative to the potential outcome of such claims and lawsuits. However, the ultimate resolution of such claims and lawsuits is not expected to have a material effect on the accompanying basic financial statements.

NOTE 20 – COMMITMENTS AND CONTINGENCIES
A. Electricity Purchase Contracts
The City has future commitments under electricity purchase contracts as discussed in Note 17A, and is contingently liable under joint venture agreements discussed in Note 12B.

B. Grant Programs
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

C. Encumbrances
The City uses encumbrances to control expenditure commitments for the year and to enhance cash management. Encumbrances represent commitments related to contracts not yet performed and purchase orders not yet filled (executory contracts; and open purchase orders). Commitments for such expenditure of monies are encumbered to reserve a portion of applicable appropriations. Encumbrances still open at year end are not accounted for as expenditures and liabilities but, rather, as restricted or committed governmental fund balance. As of June 30, 2025, total governmental fund encumbrance balances for the City are as follows:

General Fund 5,816,859$
Santa Clara Housing Successor 220,003
Nonmajor Governmental Funds 33,305,120
Total Governmental Funds 39,341,982$

D. Bay Area Water Supply and Conservation Agency Revenue Bonds Surcharge The City contracts with the City and County of San Francisco for the purchase of water from the Hetch Hetchy System operated by the San Francisco Public Utilities Commission (SFPUC). The City is also a member of the Bay Area Water Supply and Conservation Agency (BAWSCA) which represents the interests of all the 24 cities and water districts, as well as two private utilities, that purchase wholesale water from the SFPUC.

In 2009 the City entered into a new 25 year agreement with the SFPUC. One of the ways that the new agreement differs from the old is in how facilities constructed by the SFPUC that benefit the regional customers are treated from a rate and financial perspective. Under the old agreement, facilities were built, capitalized, and added to the rate base with a rate of return (interest), and then paid for over their useful lives through Draft

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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 20 – COMMITMENTS AND CONTINGENCIES (continued)

145

wholesale rates. Under the new agreement, the SFPUC issues revenue bonds and the debt service (which also includes an interest component) is paid for through rates over the life of the bonds.

During the transition from the old to the new contracts, one of the issues addressed was how to deal with the $370 million in assets that were still being paid for by the wholesale customers under the old agreement. The assets were transferred to the new agreement, assigned a life with an agreed upon rate of return of 5.13%. Also negotiated was a provision to allow the wholesale customers to prepay any remaining existing assets’ unpaid principal balance without penalty or premium. This prepayment was executed through the issuance of bonds by BAWSCA which provide a better interest rate given the favorable rate environment.

BAWSCA issued Revenue Bonds in the principal amount of $335,780,000 in January 2013 to prepay the capital cost recovery payment obligation and fund a stabilization fund. The Bonds mature in October 2034 and are secured by surcharges to the monthly water purchase charges imposed upon the participating members.

The Bonds are not a debt obligation of any member, and BAWSCA’s failure to pay its Bonds would not constitute a default by any participating member.

Should any participating member fail to pay its share, BAWSCA will rely on the stabilization fund and will pursue all legal remedies to collect the shortfall from the delinquent member. In the interim, other participating members may have their portion adjusted to insure the continued payment of the debt service surcharge.

The risk of bearing the debt service expense of a defaulting member is not significantly different than the risk each member assumes currently for fluctuations in water purchase charges. Under the Bond indenture, BAWSCA maintains a stabilization fund. If surcharge revenues collected are less than needed (due to a member’s failure to pay timely), BAWSCA uses the stabilization fund to fund the debt service deficiency, and increases the surcharge in the subsequent year to make up for the prior year shortfall and reimburse the stabilization fund account. Also, given that each participating agency’s governing body adopted a Resolution to participate in the Bond issue, Management believes that default is generally very unlikely.

The annual debt service surcharges are a fixed amount for each participant and are calculated by taking the subsequent fiscal year’s debt service, multiplied by each participant’s actual water purchase as a percent of total wholesale customer water purchases from the prior fiscal year. One-twelfth of the annual surcharge is included in the monthly bill from SFPUC. Because each participant’s share of the debt service surcharge is proportional to the amount of water purchased during the prior fiscal year, the City’s share of the debt service will fluctuate from year to year.

The City paid its surcharge of $523,678 during fiscal year 2024-25, which is included as a component of purchased water expenses in the Water Enterprise Fund. The surcharge for fiscal year 2025-26 is estimated to be $436,668.

E. Santa Clara Stadium Authority and Litigation
Asset Retirement Obligation
Pursuant to the Ground Lease, the SCSA may be required to demolish the Stadium and other improvements at the end of the lease term, upon written notice from the City. Pursuant to the Stadium Lease, the SCSA has been establishing reserves to fund the cost of demolishing the stadium at the end of the lease term. While such reserves are projected to cover the entire demolition cost, StadCo will be responsible for funding any shortfall.

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CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 20 – COMMITMENTS AND CONTINGENCIES (continued)

146

2024 Settlement Agreement
On May 23, 2024, the SCSA, the City, StadCo, and ManagementCo entered into the 2024 Settlement Agreement that resolved pending arbitration and disputes regarding the reimbursement of expenses for complementary buffets provided to certain SBL holders, the NFL public safety cost threshold and related claims, as well as other miscellaneous terms and matters. The 2024 Settlement Agreement provided for amendments to the Ground Lease (Second Amendment) and the Stadium Lease (First Amendment), which were effective as of May 28, 2024. As part of the buffet costs settlement, StadCo’s claims against the SCSA for unpaid buffet costs reimbursements for fiscal years 2014-15 through 2023-24 were resolved and deemed satisfied, and ManagementCo.’s previous (and disputed) draw under the Revolving Credit Agreement to reimburse StadCo for $902 thousand for buffet costs in fiscal year 2022-21 was deemed a timely payment by SCSA. The 2024 Settlement Agreement also provided a new $90 thousand buffet reimbursement fee per NFL Game owed by SCSA to StadCo, starting in fiscal year 2024-25, with the fee increasing each year by 3%. As part of the public safety costs settlement, the $14.8 million of public safety costs over the threshold for fiscal year 2017-18 through fiscal year 2023-24 owed by SCSA to StadCo was agreed to not be treated as Credited Public Safety Costs and therefore those credits would not affect the calculation of Performance Based Rent.

This cost due to StadCo has been redefined as Public Safety Cost 2024 Outstanding Balance, which would be paid from a legal contingency reserve and future excess revenues until paid off. In fiscal year 2024-25, the SCSA made a payment of $3.3 million from a legal contingency reserve and a payment of $6.2 million from excess revenues toward the Public Safety Cost 2024 Outstanding Balance, as agreed. The SCSA is expected to use a portion of its excess revenues to pay off the remaining $5.3 million in future years.

The 2024 Settlement Agreement also allows for the payment of the Performance Based Rent from the SCSA to the City in the amount of $7.3 million for fiscal years 2022-23 and 2023-24.

Public Safety Costs Over Threshold
Pursuant to the May 2024 Settlement Agreement, on May 28, 2024, the SCSA entered into the First Amendment to Amended and Restated Stadium Lease Agreement with the Forty Niners SC Stadium Company LLC (StadCo). Under that amendment agreement, reimbursements for Public Safety Cost 2024 Outstanding Balance will be partially paid using Litigation Contingency Reserves, with the remainder to be paid through excess revenues. As of March 31, 2025, the SCSA has $5.3 million outstanding in the Public Safety Cost 2024 Outstanding Balance included within accounts payable.

In addition, the annual NFL Public Safety Cost Threshold was increased to $360 thousand per game for lease year ending March 31, 2025, with a 4% escalator applied for each subsequent year. The amendment agreement also provided for a new Public Safety Costs Expenditures reserve account, funded in part by increases of Non- NFL Ticket Surcharges. To the extent that public safety costs for NFL events exceed the public safety cost threshold, StadCo will be reimbursed by the SCSA through payments from the SCSA’s Discretionary Fund or the Public Safety Cost Reserve. For fiscal year ending March 31, 2025, the SCSA paid $2.5 million to StadCo for public safety costs over threshold.

Excess Revenue Distribution
Pursuant to the May 2024 Settlement Agreement and the related First Amendment to Amended and Restated Stadium Lease Agreement, the use of excess revenues was restructured to facilitate the reimbursement of the Public Safety Cost 2024 Outstanding Balance to StadCo and to allow for funds to be distributed to the City s general fund. The flow of excess revenue was restructured such that, in the event the Renovation and Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 20 – COMMITMENTS AND CONTINGENCIES (continued)

147

Demolition Reserve is less than $70 million, the SCSA will deposit up to 50% of available excess revenues in the Renovation and Demolition Reserve, up to 50% of available excess revenues to repay to StadCo the Public Safety Costs 2024 Outstanding Balance, and any remaining excess revenues to be treated additional disbursements, such as distribution to the City s general fund. Once the Public Safety Costs 2024 Outstanding Balance is paid in full, the SCSA will disburse up to 50% of the remaining excess revenues to the Renovation and Demolition Reserve, and the remainder of excess revenues can be distributed to the City s general fund.

After the Renovation and Demolition Reserve has $70 million, the remaining available excess revenues may be distributed by SCSA to the City’s general fund.

For fiscal year ending March 31, 2025, the SCSA transferred $12.3 million to the Renovation and Demolition Reserve, paid $6.2 million to StadCo to pay down the Public Safety Cost 2024 Outstanding Balance, and paid $6.2 million to the City’s General Fund.

NOTE 21 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY

ACTIVITIES
A. Defeased Bonds
Bayshore North Project 2011 Tax Allocation Bonds
On May 11, 2011, the former RDA issued $31.41 million of Bayshore North Project 2011 Tax Allocation Bonds (RDA 2011 Bonds) with an interest rate ranging from 2% to 7.86%, and a final maturity of 2026, to finance various redevelopment activities associated with the former RDA’s Bayshore North Project Area. The 2011 Bonds were defeased on June 1, 2017.

The following schedule summarizes the defeased 2011 Tax Allocation Bonds:
2011 Series
Principal
Issued Date Issued
Principal
Defeased Maturities Defeased
Redemption
Date
Current Interest Bonds 11,440,000$ May 18, 2011 11,315,000$ June 1, 2026 June 1, 2021 Capital Appreciation Bonds 19,971,295 May 18, 2011 10,643,264 From June 1, 2022 to
June 1, 2026 June 1, 2021
31,411,295$ 21,958,264$

NOTE 22 – SUCCESSOR AGENCY LEASE AGREEMENTS
On January 8, 2016 the City executed the Settlement Agreement for Sharma vs Successor Agency to Redevelopment Agency of 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 transferred are as follows: the Great America Theme Park Property (not including the parking lot, see Note 4B), the Hilton Hotel Property, the North/South Parking Lots, the Gateway Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 22 – SUCCESSOR AGENCY LEASE AGREEMENTS (continued)

148

Parcel 2 Property, the Hyatt Hotel Property (not including the ballroom, see Note 4B), the Techmart Property, and the Martinson Childcare Center Property. All the properties, other than the Martinson Childcare Center Property will be sold by the Successor Agency. Until the properties are sold the rent revenues will be used to pay the Successor Agency’s enforceable obligations. The Settlement Agreement requires the City to forego the long term lease revenues generated by the properties.

A. Techmart Office Building Ground Lease
In May 1998, the former RDA entered into a long-term ground lease of the Techmart parcel with CarrAmerica.

The lease has a 55 year term with options for two additional ten-year terms. The former RDA received $1 million annual rent for each of the first ten years of the lease, which lease revenues were paid by the former RDA to the City pursuant to the First Amended Cooperation Agreement. Rent increases are scheduled as follows: 10% in the eleventh year and every five years thereafter during the initial term and 15% in the first and sixth year of each option term. Under the terms of the lease, CarrAmerica assumed responsibility for all taxes and assessments levied against the Techmart parcel and the Lessor’s interest in the ground lease is unsubordinated to any other financing. On July 13, 2006, CarrAmerica merged with Nantucket Acquisition, Inc., a wholly owned subsidiary of The Blackstone Group; the terms and conditions of the lease agreement remain in effect.

Lease revenues collected from July 1, 2012 to June 30, 2025 in the amount of $16,885,550 were passed on to the Successor Agency. For the fiscal year ended June 30, 2025, the Successor Agency recognized $1,268,251 in lease revenue and $881,911 in interest revenue. As of June 30, 2025, the Successor Agency’s receivable for lease payments was $38,407,123 and the balance of the deferred inflow of resources was $35,405,346.

B. Hyatt Regency Hotel Ground Lease and Ballroom Lease
In April 1985, the former RDA entered into a long-term ground lease with SCCC Associates (Lessee) for the development of a certain portion of that piece of land – the Bayshore North Redevelopment Project Area, and eventual operation of a high quality hotel and related facilities, amenities and improvements including one of the Ballrooms in the Convention Center. The lease is 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 2005, SHC New Santa Clara, LLC, the successor-in-interest to SCCC Associates at that time, sold the interest to Hyatt Equities, LLC. 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. Under the terms of the lease, the former RDA is entitled to receive a specified amount of minimum rent subject to adjustment at times specified in the lease. Lessee may also have an obligation for additional rent calculated as a predetermined percentage of the hotel gross revenues which exceed the amount specified in the lease.

The Settlement Agreement states that a portion of the ground lease payments from the Hyatt Hotel are derived from the Convention Center Ballroom space rental and are not related to the Hyatt Hotel ground lease. The Settlement Agreement states the City shall retain all revenues generated from the Ballroom Agreement starting July 1, 2015. Lease revenues collected from July 1, 2012 to June 30, 2015 in the amount of $921,270 were passed on to the Successor Agency. Additional information concerning the Ballroom Lease can be found in Note 4B.

On March 26, 2025, the Successor Agency approved a purchase and sale agreement related to the sale of the Hyatt parcel. The transfer of the property was settled on March 26, 2025. The Lease revenues collected from Draft

CITY OF SANTA CLARA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2025
NOTE 22 – SUCCESSOR AGENCY LEASE AGREEMENTS (continued)

149

Hyatt from July 1, 2012 to June 30, 2025 in the amount of $18,988,998 were passed on to the Successor Agency. For the fiscal year ended June 30, 2025, the Successor Agency recognized $252,000 in lease revenue and $62,150 in interest revenue. With the sale of the property, the lease was terminated and a loss on lease termination of $143,657 was recognized during the year ended June 30, 2025.

C. Schedule of the Future Lease Payments
As of June 30, 2025, the future lease payments to be received by the Successor Agency for the above lease are as follows:

For the Year
Ending June 30 Principal Interest
2026 $ 594,526 $ 869,574
2027 608,225 855,875
2028 632,128 844,173
2029 784,751 825,759
2030 802,833 807,677
2031-2035 4,641,329 3,746,744
2036-2040 6,086,329 3,140,551
2041-2045 7,798,009 2,351,559
2046-2050 9,811,750 1,352,777
2051-2055 6,647,243 230,104
$ 38,407,123 $ 15,024,793
Lease Receivable

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Required Supplementary Information
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153

CITY OF SANTA CLARA

REQUIRED SUPPLEMENTARY INFORMATION
This part of the City of Santa Clara’s Annual Comprehensive Report provides detailed information to better understand the data presented within the financial statements and note disclosures.

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Discloses the changes and components of the net pension liability and related ratios, including the pension plan’s fiduciary net position as a percentage of the total pension liability, and the net pension liability as a percentage of covered payroll.

SCHEDULE OF PLAN CONTRIBUTIONS - PENSION PLAN
Contains information of the employer’s contractually required contribution rates, contributions to the pension plan and related ratios.

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS Discloses the changes and components of the net OPEB liability and related ratios, including OPEB’s Plan Trust Fund net position as a percentage of the total OPEB liability, and the net OPEB liability as a percentage of covered employee payroll.

SCHEDULE OF PLAN CONTRIBUTIONS - OPEB PLAN
Contains information of the employer’s contractually required contribution rates, contributions to the OPEB Plan and related ratios.

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET

AND ACTUAL
Presents the accompanying budget and actual comparison schedules in accordance with the budgetary process.

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154

Miscellaneous Plan
2024 2023 2022
Total Pension Liability
Service cost 16,950,345$ 16,468,193$ 16,172,784$ Interest 61,850,719 59,622,333 57,377,858 Changes of benefit terms - 643,992 - Changes of assumptions - - 24,297,391 Differences between expected and actual experience 7,257,508 7,491,260 (3,601,124) Benefit payments, including refunds of employee contributions (52,409,738) (50,177,599) (48,432,370) Net change in total pension liability 33,648,834 34,048,179 45,814,539 Total pension liability - beginning 906,859,415 872,811,236 826,996,697 Total pension liability - ending 940,508,249$ 906,859,415$ 872,811,236$ Plan Fiduciary Net Position
Contributions - employer 37,637,166$ 36,574,733$ 34,036,195$ Contributions - employee 7,142,463 6,418,087 6,369,047 Net investment income 55,366,388 34,061,981 (45,722,450) Benefit payments, including refunds of employee contributions (52,409,738) (50,177,599) (48,432,370) Plan to plan resource movement - - - Administrative expense (465,245) (400,978) (373,396) Other Misc Income/(Expense)
(1)
- - - Net change in plan fiduciary net position 47,271,034 26,476,224 (54,122,974) Plan fiduciary net position - beginning
(2)
571,762,571 545,286,347 599,409,321
Plan fiduciary net position - ending 619,033,605$ 571,762,571$ 545,286,347$ Net Pension Liability - ending 321,474,644$ 335,096,844$ 327,524,889$

65.82% 63.05% 62.47%
Covered payroll 102,818,912$ 100,304,469$ 92,642,754$ Net pension liability as percentage of covered payroll 312.66% 334.03% 353.54% Notes to schedule:
(2) Includes any beginning of year adjustment.

MISCELLANEOUS PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years for the Measurement Periods Ended June 30

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

CITY OF SANTA CLARA
Plan fiduciary net position as a percentage of the total pension liability (1) During fiscal year 2017-18, as a result of GASB No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other Than Pensions, CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB No. 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during fiscal year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pension.

Schedule of Changes in the Net Pension Liability and Related Ratios (Miscellaneous Plan) Draft

155

2021 2020 2019 2018 2017 2016 2015
15,428,984$ 15,079,332$ 14,448,007$ 13,159,021$ 11,975,850$ 10,415,730$ 9,909,421$ 56,183,036 54,277,035 51,858,572 49,394,806 47,384,580 46,283,869 44,755,550 - - - - - - - - - - (5,067,759) 37,018,109 - (10,233,178) 1,328,853 9,229,485 10,888,358 10,229,369 (2,176,270) (2,265,081) 108,957 (45,355,148) (43,050,194) (41,003,947) (38,252,869) (35,744,281) (33,491,738) (31,858,297) 27,585,725 35,535,658 36,190,990 29,462,568 58,457,988 20,942,780 12,682,453 799,410,972 763,875,314 727,684,324 698,221,756 639,763,768 618,820,988 606,138,535 826,996,697$ 799,410,972$ 763,875,314$ 727,684,324$ 698,221,756$ 639,763,768$ 618,820,988$ 31,272,528$ 28,827,466$ 25,715,248$ 22,508,822$ 22,015,885$ 18,464,042$ 15,625,285$ 6,333,120 6,650,350 6,182,683 5,957,917 5,247,078 5,151,548 4,755,791 112,780,714 24,008,623 30,342,401 36,908,188 44,308,442 2,186,435 9,037,882 (45,355,148) (43,050,194) (41,003,947) (38,252,869) (35,744,281) (33,491,738) (31,858,297) - - - (1,065) - (788) (368) (494,347) (675,430) (326,982) (674,790) (587,320) (247,274) (457,051) - - 1,065 (1,281,438) - - - 104,536,867 15,760,815 20,910,468 25,164,765 35,239,804 (7,937,775) (2,896,758) 494,872,454 479,111,639 458,201,171 433,036,406 397,796,602 405,734,377 408,631,135 599,409,321$ 494,872,454$ 479,111,639$ 458,201,171$ 433,036,406$ 397,796,602$ 405,734,377$ 227,587,376$ 304,538,518$ 284,763,675$ 269,483,153$ 265,185,350$ 241,967,166$ 213,086,611$

72.48% 61.90% 62.72% 62.97% 62.02% 62.18% 65.57%
89,321,766$ 89,410,939$ 81,872,333$ 75,515,390$ 71,285,526$ 61,942,363$ 58,051,406$ 254.79% 340.61% 347.76% 356.81% 371.95% 390.63% 367.07%

CITY OF SANTA CLARA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

MISCELLANEOUS PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years for the Measurement Periods Ended June 30 Changes of assumptions: The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. There were no assumption changes in 2023 or 2024.

Effective with June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. The accounting discount rate was 7.15% for measurement dates 2017 through 2021. In 2015 and 2016, the accounting discount rate was 7.65% to reflect an adjustment of administrative expense.

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156

Miscellaneous Plan
2025 2024 2023 2022
Actuarially determined contribution 41,820,152 $ 37,993,602$ 36,763,759$ 34,126,897$ Contributions in relation to the actuarially
determined contributions (41,820,152) (37,993,602) (36,763,759) (34,126,897) Contribution deficiency (excess) -$ -$ -$ -$ Covered payroll 110,578,742$ 102,818,912$ 100,304,469$ 92,642,754$ Contributions as a percentage of
covered payroll 37.82% 36.95% 36.65% 36.84%
Notes to schedule
Valuation date 6/30/2022 6/30/2021 6/30/2020 6/30/2019
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, closed Remaining amortization period 22 years as of valuation date Asset valuation method Fair value of assets
Inflation
Salary increases Varies by Entry Age and Service
Investment rate of return
Retirement age
Mortality
The probabilities of Retirement are based on the CalPERS Experience Study.

7.50% for 2015 to 2018, 7.375%, for 2019, 7.25% for 2020, and 7.0% for 2021 through 2022, 6.8% for 2023 to 2025, net of pension plan investment expense, including inflation

2.75% for 2015 to 2019, 2.675% for 2020 and 2.50% for 2021 through 2022, 2.30% for 2023 to 2025
The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2000 to 2019. Pre-retirement and Post-retirement mortality rates areprojected generationally for future years using 80% of Scale, MP-2020 published by the Society of Actuaries.

CITY OF SANTA CLARA

SCHEDULE OF PLAN CONTRIBUTIONS

MISCELLANEOUS PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years Ended June 30

Schedule of Plan Contributions (Miscellaneous Plan)
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157

2021 2020 2019 2018 2017 2016
31,035,143$ 28,987,800$ 23,615,964$ 25,256,224$ 21,613,984$ 18,543,534$ (31,035,143) (28,987,800) (23,615,964) (25,256,224) (21,613,984) (18,543,534) -$ -$ -$ -$ -$ -$ 89,321,766$ 89,410,939$ 81,872,333$ 75,515,390$ 71,285,526$ 61,942,363$

34.75% 32.42% 28.84% 33.45% 30.32% 29.94%
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013

CITY OF SANTA CLARA

SCHEDULE OF PLAN CONTRIBUTIONS

MISCELLANEOUS PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years Ended June 30

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158

Safety Plan
2024 2023 2022
Total Pension Liability
Service cost 18,686,372$ 17,572,981$ 17,072,526$ Interest 66,364,978 63,455,937 60,648,121 Changes of benefit terms - 261,381 - Changes of assumptions - - 27,501,978 Differences between expected and actual experience 13,390,967 12,903,735 (3,595,795) Benefit payments, including refunds of employee contributions (53,817,662) (51,815,487) (49,070,549) Net change in total pension liability 44,624,655 42,378,547 52,556,281 Total pension liability - beginning 965,985,937 923,607,390 871,051,109 Total pension liability - ending 1,010,610,592$ 965,985,937$ 923,607,390$ Plan Fiduciary Net Position
Contributions - employer 36,813,747$ 34,987,003$ 31,703,230$ Contributions - employee 6,600,757 6,145,378 5,872,012 Net investment income 59,091,657 36,533,713 (49,438,525) Benefit payments, including refunds of employee contributions (53,817,662) (51,815,487) (49,070,549) Plan to plan resource movement - - - Administrative expense (500,356) (433,487) (405,431) Other Misc Income/(Expense)
(2)
- - - Net change in plan fiduciary net position 48,188,143 25,417,120 (61,339,263) Plan fiduciary net position - beginning 614,911,796 589,494,676 650,833,939 Plan fiduciary net position - ending 663,099,939$ 614,911,796$ 589,494,676$ Net Pension Liability - ending 347,510,653$ 351,074,141$ 334,112,714$

65.61% 63.66% 63.83%
Covered payroll 65,868,106$ 62,842,726$ 57,190,646$ Net pension liability as percentage of covered payroll 527.59% 558.66% 584.21% Notes to schedule:
(2) Includes any beginning of year adjustment.

CITY OF SANTA CLARA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

SAFETY PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years for the Measurement Periods Ended June 30 (1)
Plan fiduciary net position as a percentage of the total pension (1) During fiscal year 2017-18, as a result of GASB No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other Than Pensions, CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB No. 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during fiscal year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pension.

Schedule of Changes in the Net Pension Liability and Related Ratios (Safety Plan) Draft

159

2021 2020 2019 2018 2017 2016 2015
15,750,690$ 15,518,467$ 14,861,460$ 13,999,625$ 13,111,358$ 10,985,005$ 10,678,931$ 59,165,587 56,740,930 54,154,256 51,713,042 49,741,737 48,410,844 46,944,730 - - - - - - - - - - (3,333,870) 40,842,398 - (11,249,844) 7,316,002 10,124,845 8,480,853 5,782,119 (1,814,831) (3,491,487) (3,604,245) (46,961,121) (44,599,326) (41,984,265) (38,978,890) (37,370,686) (35,868,203) (34,372,454) 35,271,158 37,784,916 35,512,304 29,182,026 64,509,976 20,036,159 8,397,118 835,779,951 797,995,035 762,482,731 733,300,705 668,790,729 648,754,570 640,357,452 871,051,109$ 835,779,951$ 797,995,035$ 762,482,731$ 733,300,705$ 668,790,729$ 648,754,570$ 29,084,516$ 26,654,865$ 23,458,623$ 20,510,633$ 19,580,881$ 16,679,012$ 14,692,277$ 5,742,937 5,589,396 5,781,715 5,395,755 4,913,868 4,376,079 4,079,023 122,207,114 26,348,251 33,408,137 40,902,179 49,621,113 2,362,110 10,236,992 (46,961,121) (44,599,326) (41,984,265) (38,978,890) (37,370,686) (35,868,203) (34,372,454) - - - (1,182) - 788 - (540,727) (744,424) (362,341) (751,243) (658,507) (279,579) (516,273) - - 1,182 (1,426,623) - - - 109,532,719 13,248,762 20,303,051 25,650,629 36,086,669 (12,729,793) (5,880,435) 541,301,220 528,052,458 507,749,407 482,098,778 446,012,109 458,741,902 464,622,337 650,833,939$ 541,301,220$ 528,052,458$ 507,749,407$ 482,098,778$ 446,012,109$ 458,741,902$ 220,217,170$ 294,478,731$ 269,942,577$ 254,733,324$ 251,201,927$ 222,778,620$ 190,012,668$

74.72% 64.77% 66.17% 66.59% 65.74% 66.69% 70.71%
54,912,443$ 53,564,578$ 50,808,770$ 47,569,993$ 47,064,869$ 41,116,053$ 38,909,866$ 401.03% 549.76% 531.29% 535.49% 533.74% 541.83% 488.34%

CITY OF SANTA CLARA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

SAFETY PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years for the Measurement Periods Ended June 30 (1)
(1) During fiscal year 2017-18, as a result of GASB No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other Than Pensions, CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB Changes of assumptions:The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and ReviewofActuarialAssumptions.There were no assumption changes in 2023or2024.Effective with June 30, 2021valuation date (June 30,2022 measurement date), the accounting discount rate was reduced from7.15% to 6.90%. The accounting discount rate was 7.15% formeasurement dates 2017through 2021.In 2015and 2016,the accounting discount rate was 7.65% to reflect an adjustment of administrative expense.

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160

Safety Plan
2025 2024 2023 2022
Actuarially determined contribution 40,969,901$ 37,050,903$ 35,094,101$ 32,084,531$ Contributions in relation to the actuarially
determined contributions (40,969,901) (37,050,903) (35,094,101) (32,084,531) Contribution deficiency (excess) -$ -$ -$ -$ Covered payroll 67,512,733$ 65,868,106$ 62,842,726$ 57,190,646$ Contributions as a percentage of
covered payroll 60.68% 56.25% 55.84% 56.10%
Notes to schedule
Valuation date 6/30/2022 6/30/2021 6/30/2020 6/30/2019
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, closed Remaining amortization period 22 years as of valuation date Asset valuation method Fair value of asset
Inflation
Salary increases Varies by Entry Age and Service
Investment rate of return
Retirement age
Mortality
The probabilities of Retirement are based on the CalPERS Experience Study.

CITY OF SANTA CLARA

SCHEDULE OF PLAN CONTRIBUTIONS

SAFETY PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years Ended June 30

2.75% for 2015 to 2019, 2.675% for 2020 and 2.50% for 2021 through 2022, 2.30% for 2023 to 2025

7.50% for 2015 to 2018, 7.375%, for 2019, 7.25% for 2020, and 7.0% for 2021 through 2022,

6.8% for 2023 to 2025, net of pension plan investment expense, including inflation Theprobabilities of mortality are based on the2021 CalPERSExperience Study for theperiod from 2000 to 2019. Pre-retirement and Post-retirement mortality rates are projected generationally for future years using 80% of Scale, MP-2020 published by the Society of Actuaries.

Schedule of Plan Contributions (Safety Plan)
Draft

161

2021 2020 2019 2018 2017 2016
29,295,456$ 27,099,469$ 23,484,760$ 22,002,506$ 19,735,867$ 17,365,058$ (29,295,456) (27,099,469) (23,484,760) (22,002,506) (19,735,867) (17,365,058) -$ -$ -$ -$ -$ -$ 54,912,443$ 53,564,578$ 50,808,770$ 47,569,993$ 47,064,869$ 41,116,053$

53.35% 50.59% 46.22% 46.25% 41.93% 42.23%
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013

CITY OF SANTA CLARA

SCHEDULE OF PLAN CONTRIBUTIONS

SAFETY PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN Last Ten Fiscal Years Ended June 30

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162
2025 2024 2023 2022 2021 2020 2019 2018 2017
Total OPEB Liability
Service cost 2,367 $ 2,303 $ 2,415 $ 2,344 $ 2,091 $ 2,030 $ 2,264 $ 2,198 $ 2,134 $ Interest 3,141 3,057 3,244 3,145 3,292 3,200 3,478 3,343 3,194 Differences between expected and actual
experience 2,281 (1,652) - (326) - (1,644) - - Changes of assumptions (760) - 1,709 - (5,838) - - Benefit payments including refunds (3,536) (3,535) (3,499) (3,437) (3,592) (3,498) (3,096) (3,036) (2,034) Net change in total OPEB liability 4,253 1,825 (252) 2,052 3,174 1,732 (4,836) 2,505 3,294 Total OPEB liability - beginning 69,211 67,386 67,638 65,586 62,412 60,680 65,516 63,011 59,717 Total OPEB liability - ending 73,464 $ 69,211 $ 67,386 $ 67,638 $ 65,586 $ 62,412 $ 60,680 $ 65,516 $ 63,011 $ Plan Fiduciary Net Position
Contributions - employer 5,490 $ 5,248 $ 4,915 $ 5,068 $ 4,535 $ 4,696 $ 5,366 $ 6,300 $ 2,733 $ Net investment income 3,306 2,249 1,094 (3,222) 2,957 1,403 1,410 524 738 Benefit payments including refunds (3,536) (3,535) (3,499) (3,437) (3,592) (3,498) (3,096) (3,036) (2,034) Administrative expense (122) (118) (65) (62) (59) (100) (91) (71) (73) Net change in plan fiduciary net position 5,138 3,844 2,445 (1,653) 3,841 2,501 3,589 3,717 1,364 Plan fiduciary net position - beginning 33,513 29,669 27,223 28,876 25,035 22,534 18,945 15,228 13,864 Plan fiduciary net position - ending 38,651 $ 33,513 $ 29,668 $ 27,223 $ 28,876 $ 25,035 $ 22,534 $ 18,945 $ 15,228 $ Net OPEB Liability - ending 34,813 $ 35,698 $ 37,718 $ 40,415 $ 36,710 $ 37,377 $ 38,146 $ 46,571 $ 47,783 $

52.6% 48.4% 44.0% 40.2% 44.0% 40.1% 37.1% 28.9% 24.2%
Covered payroll 204,323 $ 193,597 $ 180,100 $ 169,613 $ 163,594 $ 164,431 $ 151,453 $ 135,297 $ 102,468 $

17.0% 18.4% 20.9% 23.8% 22.4% 22.7% 25.2% 34.4% 46.6%
Notes to schedule:
(1) Fiscal year 2016-17 was the first year of implementation.

CITY OF SANTA CLARA

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS

OPEB PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PLAN Last Ten Fiscal Years for the Measurement Periods Ended June 30 (1)
(In Thousands)
Plan fiduciary net position as a percentage
of the total OPEB liability
Net OPEB liability as percentage of covered
payroll

Schedule of Changes in the Net OPEB Liability and Re lated Ratios (OPEB Plan) Draft

163
2025 2024 2023 2022 2021 2020 2019 2018 2017
Actuarially determined contribution 5,420 $ 5,229 $ 4,896 $ 4,748 $ 4,826 $ 4,681 $ 5,306 $ 5,466 $ 2,981 $ Contributions in relation to the actuarially

determined contributions 5,490 5,248 4,914 5,068 4,535 4,696 5,366 6,300 2,981 Contribution deficiency (excess) (70) $ (19) $ (18) $ (320) $ 291 $ (15) $ (60) $ (834) $ - $ Covered payroll 204,323 $ 193,597 $ 180,100 $ 169,613 $ 163,594 $ 164,431 $ 151,453 $ 135,297 $ 102,468 $ Contributions as a percentage of

covered payroll 2.65% 2.70% 2.72% 2.99% 2.77% 2.86% 3.54% 4.66% 2.91% Notes to schedule:
(
1) Fiscal year 2016-17 was the first year of implementation.

CITY OF SANTA CLARA

SCHEDULE OF PLAN CONTRIBUTIONS

OPEB PLAN, AN AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PLAN Last Ten Fiscal Years Ended June 30
(1)
(In Thousands)

Schedule of Plan Contributions (OPEB Plan)
Draft

164

Actuarial valuation date June 30, 2022
Actuarial cost method Entry Age Normal, Level Percentage of Payroll Amortization method Level percent of payroll
Unfunded liability amortization
Asset valuation method
Discount rate 4.50%
General inflation 2.50%
Healthcare trend
Mortality CalPERS 2000-2019 Experience Study
Mortality improvement

CITY OF SANTA CLARA
Notes to Schedule of Employer Contribution (OPEB Plan)
Post-retirement mortality projected fully generational with Scale MP-2021
Methods and Assumptions for 2024-25 Actuarially Determine Contributions 15 years (open period) for method, assumption, plan changes, and gains and losses
Maximum 30-year combined period
Investment gains and losses spread over a 5-year rolling period.

Not less that 80% nor greater than 120% of fair value
Non-Medicare -8.50% for 2024, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Non-Kaiser)- 7.50% for 2024 decreasing to an
ultimate rate of 3.45% in 2076
30 years (closed period) for initial UAAL
(15 Years remaining on June 30, 2024)
20 years (closed period) for implied subsidy on 06/30/2019 (15 years remaining on June 30, 2024)
Medicare (Kaiser)- 6.25% for 2024 decreasing to an ultimate rate of 3.45% in 2076

Notes to Schedule of Employer Contributions (OPEB Pl an) Draft

165

Variance with
Budgeted Amounts Final Budget
Actual Amounts Positive
Original Final Budgetary Basis (Negative)

REVENUES
Taxes:

Sales 62,900,000$ 68,808,920$ 79,352,441$ 10,543,521$ Ad valorem 94,391,000 94,511,000 95,931,933 1,420,933 Transient occupancy 22,850,000 22,850,000 26,992,989 4,142,989 Other 6,950,000 6,950,000 7,018,562 68,562 Licenses, permits, fines and penalties 10,330,000 10,330,000 12,525,584 2,195,584 Intergovernmental 970,000 5,251,764 5,465,671 213,907 Charges for services 41,722,435 43,679,000 47,784,717 4,105,717 Contributions in-lieu of taxes 34,500,000 34,500,000 38,881,781 4,381,781 Interest and rents 20,470,187 32,087,479 37,700,844 5,613,365 Other 457,550 6,622,550 6,984,707 362,157 Total Revenues 295,541,172 325,590,713 358,639,229 33,048,516

EXPENDITURES
General Government:

General Administration 36,781,908 35,696,776 29,838,926 5,857,850 City Clerk 2,102,267 2,213,267 2,295,760 (82,493) City Attorney 3,357,661 3,357,661 3,050,250 307,411 Human Resources 4,845,256 5,202,689 4,465,154 737,535 Finance 21,008,682 21,616,597 21,266,127 350,470 Total General Government 68,095,774 68,086,990 60,916,217 7,170,773 Public Works 26,347,463 26,641,355 25,143,136 1,498,219 Parks and Recreation 23,172,047 23,197,047 21,049,615 2,147,432 Public Safety:

Police 92,074,298 92,369,379 91,171,462 1,197,917 Fire 66,292,191 71,152,427 69,284,129 1,868,298 Total Public Safety 158,366,489 163,521,806 160,455,591 3,066,215 Planning and Inspection 4,945,765 5,084,105 4,380,596 703,509 Library 11,732,505 11,750,644 11,577,046 173,598 Total Expenditures 292,660,043 298,281,947 283,522,201 14,759,746 For the year ended June 30, 2025

CITY OF SANTA CLARA

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL (NON-GAAP LEGAL BASIS)

General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Non-GAAP Legal Basis)

Draft

166

Variance with
Budgeted Amounts Final Budget
Actual Amounts Positive
Original Final Budgetary Basis (Negative)

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 2,881,129 27,308,766 75,117,028 47,808,262

OTHER FINANCING SOURCES (USES)
Transfers in 2,029,821 3,655,534 3,655,261 (273) Transfers (out) (18,038,146) (29,398,367) (29,398,367) - Total Other Financing Sources (Uses) (16,008,325) (25,742,833) (25,743,106) (273)

EXCESS (DEFICIENCY) OF REVENUES AND

OTHER SOURCES OVER EXPENDITURES
AND OTHER USES - BUDGETARY BASIS (13,127,196)$ 1,565,933$ 49,373,922$ 47,807,989$ ADJUSTMENTS TO BUDGETARY BASIS:

Prior year encumbrances recognized on the GAAP basis (6,162,368) Current year encumbrances recognized on the budgetary basis 5,816,859 Net change in receivables recognized on the GAAP basis 11,321,043 Net change in accrued liabilities recognized on the GAAP basis (252,050) Net change in funds for GAAP Basis not included in annual budget (333,262) Beginning Fund balance 181,319,452
Ending Fund balance 241,083,596$
For the year ended June 30, 2025
(continued)

CITY OF SANTA CLARA

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL (NON-GAAP LEGAL BASIS)

Draft

167

Variance
Actual Amount Positive
Original Final Budgetary Basis (Negative)

REVENUES
Interest and rents 186,771 $ 186,771$ 166,504$ (20,267) $ Other 1,119,555 1,119,555 1,376,048 256,493 Total Revenues 1,306,326 1,306,326 1,542,552 236,226

EXPENDITURES
General Administration 902,579 902,579 663,187 239,392 Total Expenditures 902,579 902,579 663,187 239,392

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 403,747 403,747 879,365 475,618

EXCESS (DEFICIENCY) OF REVENUES AND

OTHER SOURCES OVER EXPENDITURES
AND OTHER USES 403,747 $ 403,747$ 879,365 475,618 $ ADJUSTMENTS TO BUDGETARY BASIS:

Expenditures of prior year encumbrances recognized on the GAAP basis (110,010) Current year encumbrances recognized on the budgetary basis 220,003 Net change in accrued liabilities recognized on the GAAP basis 20,825 Beginning Fund balance 5,868,807
Ending Fund balance 6,878,990$

BUDGET AND ACTUAL (NON-GAAP LEGAL BASIS)
Budgeted Amounts
For the year ended June 30, 2025

AND CHANGES IN FUND BALANCES

CITY OF SANTA CLARA

SANTA CLARA HOUSING SUCCESSOR

SCHEDULE OF REVENUES, EXPENDITURES

Santa Clara Housing Successor Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Non-GAAP Legal Basis)

Draft

CITY OF SANTA CLARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2025

168

NOTE 1 – REQUIRED SUPPLEMENTARY INFORMATION
A. BUDGETS AND BUDGETARY ACCOUNTING
The results of operations are presented in the budget and actual comparison statement in accordance with the budgetary process (budgetary basis) to provide a meaningful comparison with the budget.

The major differences between the budgetary basis actual and GAAP basis actual are as follows:
 Year-end encumbrances are recognized as the equivalent of expenditures in the budgetary basis financial statements, while encumbered amounts are not recognized as expenditures on the GAAP basis until the liability is incurred.
 Expenditures of prior year encumbrances are recognized on the GAAP basis in the current year, while on the budgetary basis prior year encumbrances were recognized in the prior year.  Accrued liabilities and compensated absences are recognized on the GAAP basis, while the budgetary basis does not recognize accrued liabilities.
 Revenues considered susceptible to accrual on the GAAP basis are not recognized on the budgetary basis until received.
 Formal Budgets are not prepared for non-cash transactions, and as such are excluded from the budgetary basis financial schedules.
 Increases to certain GAAP basis advances to other funds are treated as expenditures for budgetary basis financial statements.

Notes to Required Supplementary Information
Draft

Supplementary Information
Draft

Draft

171

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

GAS TAX
The fund accounts for revenues and expenditures received from the State under Street and Highways Codes Sections 2105 (Gas Tax 2105), 2106 (Collier-Unruh) and 2107 (Special Gas Tax) and from the State under the Road Repair and Accountability Act of 2017 under the Streets and Highways Code Section 2030. The allocations must be spent for street maintenance or construction and a limited amount for engineering.

HUD PROGRAMS
This fund accounts for grant funds received from other governmental agencies for the purpose of developing viable urban communities.

CITY AFFORDABLE HOUSING
This fund accounts for the City’s Below Market Housing Program for low and moderate income residents.

SANTA CLARA HOUSING AUTHORITY
On February 22, 2011, the Santa Clara Housing Authority (SCHA), a special revenue fund, was established to account for housing loans to assist in providing affordable housing. On March 8, 2011, the City, former RDA, and the SCHA executed an assignment and assumption agreement whereby the SCHA assumed responsibility for housing loans for qualifying individuals and groups. Loans assigned were made under various programs; substantially all are long-term in nature.

MAINTENANCE
This fund accounts for the maintenance of the Lawrence Station Community Facility District and two Parking Districts located near the City’s Convention Center and the downtown area. Funds are received by means of a Special Benefit Assessment levied against the property owners in the respective districts.

OPERATING GRANTS
This fund accounts for grant funds received from other governmental agencies for various operating activities.

NEW DEVELOPMENT SERVICE FEE
This fund accounts for the revenues and expenditures from the new development-related fees that are imposed upon new development projects in the City.

CERTIFIED UNIFIED PROGRAM AGENCIES (CUPA)
This fund accounts for fees collected for regulation and management of hazardous materials in the City. Fees are to be used in the administration of the CUPA program.

Draft

172
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Draft

CITY OF SANTA CLARA
NON-MAJOR GOVERNMENTAL FUNDS (continued)

173

DEBT SERVICE FUNDS

PUBLIC FACILITIES FINANCING CORPORATION (PFFC)
This fund accumulates monies for the repayment of Certificates of Participation, which are financed by lease payments made by the City’s General Fund to the PFFC for use of the Police Administration Building and Library sites.

CAPITAL PROJECTS FUNDS

PARKS AND RECREATION FACILITIES
This fund was established to account for revenues, contributions and reimbursements received and costs incurred in connection with the acquisition and construction of the City parks.

STREETS AND HIGHWAYS IMPROVEMENT
This fund is used to account for revenues and expenditures related to road construction and traffic improvements.

STORM DRAIN IMPROVEMENT
This fund is used to account for revenues and expenditures related to the construction or modification of the City’s storm drainage system.

FIRE DEPARTMENT IMPROVEMENT
This fund is used to account for revenues and expenditures related to the construction or modification of City fire stations.

LIBRARY DEPARTMENT IMPROVEMENT
This fund is used to account for revenues and expenditures related to the construction or modification of the City’s library facilities.

PUBLIC FACILITIES
This fund is used to account for revenues and expenditures related to the construction, acquisition or modification of public improvements not accounted for in another Capital Projects Fund.

Draft

174

City Santa Clara
HUD Affordable Housing
Gas Tax Programs Housing Authority
ASSETS
Cash and investments:

Pooled cash and investments 3,237,117$ 424,708$ 21,875,570$ 1,110,728 $ Investments with fiscal agent - current - - - - Restricted cash - - - - Receivables (net of allowance for uncollectibles):

Accounts - - - - Loans - 11,856,074 65,025,429 6,393,379 Intergovernmental 948,585 1,043,604 - - Materials, supplies and prepaids - - - - Investments with fiscal agent - noncurrent - - - - Total Assets 4,185,702$ 13,324,386$ 86,900,999$ 7,504,107 $

LIABILITIES
Accrued liabilities -$ 539,525$ 175,258$ 3,860 $ Unearned revenue - - - - Total Liabilities - 539,525 175,258 3,860

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Loans - 11,856,074 65,025,429 6,393,379 Total Deferred Inflows of Resources - 11,856,074 65,025,429 6,393,379

FUND BALANCES
Restricted 4,185,702 928,787 21,700,312 - Committed - - - 1,106,868 Total Fund Balances 4,185,702 928,787 21,700,312 1,106,868 Total Liabilities, Deferred Inflows of Resources
and Fund Balances 4,185,702$ 13,324,386$ 86,900,999$ 7,504,107 $

SPECIAL REVENUE FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
June 30, 2025

Combining Balance Sheet

Draft

175

Certified
Operating New Unified Program Public
Grants Development Agencies Facilities
Maintenance Fund Service Fee Fund Financing Corp.
2,262,145$ 3,999,116$ 41,208,197$ 1,016,735$ 86,361$ - - - - 18,993 193,927 - - - - - - 105,600 - - - - - - - 473 1,024,878 - - - - - - - - - - - - 716,085 2,456,545$ 5,023,994$ 41,313,797$ 1,016,735$ 821,439$ 75,677$ 40,579$ 462,164$ 21,854$ -$ - - 45,488 - - 75,677 40,579 507,652 21,854 - - - - - - - - - - - 2,380,868 4,983,415 351,791 994,881 821,439 - - 40,454,354 - - 2,380,868 4,983,415 40,806,145 994,881 821,439 2,456,545$ 5,023,994$ 41,313,797$ 1,016,735$ 821,439$ (continued)

SPECIAL REVENUE FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
June 30, 2025

DEBT SERVICE
FUND

Draft

176

Parks Streets
and and Storm
Recreation Highways Drain
Facilities Improvement Improvement
ASSETS
Cash and investments:

Pooled cash and investments 65,560,472$ 63,133,095$ 5,897,488$ Investments with fiscal agent - current - - - Restricted cash - 2,457,804 - Receivables (net of allowance for uncollectibles):

Accounts - - 145,120 Loans - - - Intergovernmental - 228,130 115,481 Materials, supplies and prepaids 53,523 - - Investments with fiscal agent - noncurrent - - - Total Assets 65,613,995$ 65,819,029$ 6,158,089$

LIABILITIES
Accrued liabilities 902,421$ 4,000,096$ 546,628$ Unearned revenue - - - Total Liabilities 902,421 4,000,096 546,628

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Loans - - - Total Deferred Inflows of Resources - - -

FUND BALANCES
Restricted 50,545,462 50,062,752 324,510
Committed 14,166,112 11,756,181 5,286,951
Total Fund Balances 64,711,574 61,818,933 5,611,461 Total Liabilities, Deferred Inflows of Resources
and Fund Balances 65,613,995$ 65,819,029$ 6,158,089$

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
June 30, 2025 (continued)

CAPITAL PROJECTS FUNDS

Draft

177

Total
Fire Library Non-Major
Department Department Public Governmental
Improvement Improvement Facilities Funds
1,859,641$ 653,160$ 30,811,241$ 243,135,774$ - - - 18,993 - - - 2,651,731 - - 278,685 529,405 - - - 83,274,882 - - - 3,361,151 1,055 - - 54,578 - - - 716,085 1,860,696$ 653,160$ 31,089,926$ 333,742,599$ 23,923$ -$ 1,491,268$ 8,283,253$ - - 235,000 280,488 23,923 - 1,726,268 8,563,741 - - - 83,274,882 - - - 83,274,882 - - 2,655,927 139,935,846 1,836,773 653,160 26,707,731 101,968,130 1,836,773 653,160 29,363,658 241,903,976 1,860,696$ 653,160$ 31,089,926$ 333,742,599$

CAPITAL PROJECTS FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
June 30, 2025 (continued)

Draft

178

City Santa Clara
HUD Affordable Housing
Gas Tax Programs Housing Authority

REVENUES
Taxes:

Other -$ - $ -$ - $ Licenses, permits, fines, and penalties - - - - Intergovernmental 7,278,280 2,827,796 2,238 - Charges for services - - 37,356 - Interest and rents 840,109 2,183 728,898 41,826 Other - 339,992 3,952,691 15,795 - - - - Total Revenues 8,118,389 3,169,971 4,721,183 57,621

EXPENDITURES
Current:

General Administration - 2,800,093 1,094,609 168,745 Public Works - - - - Parks and Recreation - - - - Public Safety:

Police - - - - Fire - - - - Planning and Inspection - - - - Library - - - - Capital outlay - 534,991 - - Debt service:

Principal payments - - - - Interest and fiscal fees - - - - - - - - Total Expenditures - 3,335,084 1,094,609 168,745

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 8,118,389 (165,113) 3,626,574 (111,124)

OTHER FINANCING SOURCES (USES)
Transfers in - - - - Transfers (out) (8,821,915) - - - Total Other Financing Sources (Uses) (8,821,915) - - - NET CHANGE IN FUND BALANCE (703,526) (165,113) 3,626,574 (111,124) Fund balances - beginning 4,889,228 1,093,900 18,073,738 1,217,992 Fund balances - ending 4,185,702$ 928,787 $ 21,700,312$ 1,106,868 $

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
For the year ended June 30, 2025

SPECIAL REVENUE FUNDS

Combining Statement of Revenues, Expenditures, and C hanges in Fund Balances

Draft

179

DEBT SERVICE
FUND
Certified
Operating New Unified Program Public
Grants Development Agencies Facilities
Maintenance Fund Service Fee Fund Financing Corp.
388,466$ - $ -$ -$ -$ - - 9,356,968 - - - 7,378,898 21,431 - - 1,022,279 143,343 12,006,988 - - 34,301 7,782 1,429,903 21,730 36,182 - - 68,114 161,524 - - - - - - 1,445,046 7,530,023 22,883,404 183,254 36,182 - - - - - 1,955,763 - - - - 154,758 202,588 - - - 97,603 1,004,944 - - - - 5,181,816 3,522,672 116,894 - - 32,811 15,993,433 - - - 189,122 - - - - 74,751 - - - - - - - 1,085,000 - - - - 321,100 - - - - - 2,208,124 6,686,032 19,516,105 116,894 1,406,100 (763,078) 843,991 3,367,299 66,360 (1,369,918) 977,546 575,620 - 928,521 1,405,940 (308,201) (1,364,581) (352,809) - - 669,345 (788,961) (352,809) 928,521 1,405,940 (93,733) 55,030 3,014,490 994,881 36,022 2,474,601 4,928,385 37,791,655 - 785,417 2,380,868$ 4,983,415$ 40,806,145$ 994,881$ 821,439$ (continued)

SPECIAL REVENUE FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
For the year ended June 30, 2025

Draft

180

Parks Streets
and and Storm
Recreation Highways Drain
Facilities Improvement Improvement

REVENUES
Taxes:

Other -$ - $ - $
Licenses, permits, fines, and penalties - - - Intergovernmental 2,565,020 5,756,445 305,083 Charges for services - - 1,486,772 Interest and rents 1,756,186 519,564 10,940 Other 4,367,809 1,253,321 - - - - Total Revenues 8,689,015 7,529,330 1,802,795

EXPENDITURES
Current:

General Administration - - - Public Works - 5,753,000 682,448 Parks and Recreation 1,722,713 - - Public Safety:

Police - - -
Fire - - -
Planning and Inspection - - - Library - - - Capital outlay 1,686,739 15,560,301 1,091,195 Debt service:

Principal payments - - - Interest and fiscal fees - - - - - - Total Expenditures 3,409,452 21,313,301 1,773,643

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 5,279,563 (13,783,971) 29,152

OTHER FINANCING SOURCES (USES)
Transfers in 11,038,805 14,638,749 2,525,765
Transfers (out) (2,642) (11,576) (1,818,315) Total Other Financing Sources (Uses) 11,036,163 14,627,173 707,450 NET CHANGE IN FUND BALANCE 16,315,726 843,202 736,602 Fund balances - beginning 48,395,848 60,975,731 4,874,859 Fund balances - ending 64,711,574$ 61,818,933$ 5,611,461$

CAPITAL PROJECTS FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
For the year ended June 30, 2025 (continued)

Draft

181

Total
Fire Library Non-Major
Department Department Public Governmental
Improvement Improvement Facilities Funds
-$ -$ -$ 388,466$ - - - 9,356,968 - - 11,574 26,146,765 - - - 14,696,738 - - 217,682 5,647,286 - - 526,784 10,686,030 - - - - - 756,040 66,922,253 - - 3,518,468 7,581,915 - - 27,792 8,419,003 - - - 2,080,059 - - - 1,102,547 759,826 - - 9,581,208 - - - 16,026,244 - 16,950 - 206,072 174,106 - 1,967,803 21,089,886 - - 119,699 1,204,699 - - 51,000 372,100 - - - - 933,932 16,950 5,684,762 67,663,733 (933,932) (16,950) (4,928,722) (741,480) 1,506,700 471,848 8,018,845 42,088,339 - (63,269) (84,237) (12,827,545) 1,506,700 408,579 7,934,608 29,260,794 572,768 391,629 3,005,886 28,519,314 1,264,005 261,531 26,357,772 213,384,662 1,836,773$ 653,160$ 29,363,658$ 241,903,976$

CAPITAL PROJECTS FUNDS

CITY OF SANTA CLARA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
For the year ended June 30, 2025 (continued)

Draft

182

Maintenance
Variance
Actual Amount Positive
Budget Budgetary Basis (Negative)

REVENUES
Taxes-Other 392,193$ 388,466 $ (3,727)$ Charges for services 1,022,279 1,022,279 - Interest and rents 2,530 34,301 31,771 Total Revenues 1,417,002 1,445,046 28,044

EXPENDITURES
Current:

Finance 1,671 - 1,671 Public Works 2,217,480 2,000,725 216,755 Parks and Recreation 248,531 226,330 22,201 Police 97,603 97,603 - - Total Expenditures 2,565,285 2,324,658 240,627

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,148,283) (879,612) 268,671

OTHER FINANCING SOURCES (USES)
Transfers in 977,546 977,546 - Transfers out (308,201) (308,201) - Total Other Financing Sources (Uses) 669,345 669,345 -

EXCESS (DEFICIENCY) OF REVENUES AND

OTHER SOURCES OVER EXPENDITURES
AND OTHER USES (478,938)$ (210,267) 268,671$ ADJUSTMENTS TO BUDGETARY BASIS:

Expenditures of prior year encumbrances recognized on the GAAP basis (223,880) Current year encumbrances recognized on the budgetary basis 376,975 Net change in accrued liabilities recognized on the GAAP basis (36,561) Beginning Fund balance 2,474,601
Ending Fund balance 2,380,868$

CITY OF SANTA CLARA

SPECIAL REVENUE FUNDS

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL (NON-GAAP LEGAL BASIS)
For the year ended June 30, 2025

Special Revenue Funds Schedule of Revenues, Expendit ures, and Changes in Fund Balances – Budget and Actual (Non-GAAP Legal Basis)

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183

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS
Non-Major Enterprise Funds are used to finance and account for operations and activities performed by designated departments in the City or through third party agreements.

SOLID WASTE FUND
This fund accounts for the administration of the City’s garbage and rubbish collection service.

CEMETERY FUND
This fund accounts for the activities of the Mission City Memorial Park.

SANTA CLARA CONVENTION CENTER FUND
The Santa Clara Convention Center Fund was established in 1984 to account for the operations of the City’s Convention Center or through third party agreements.

SPORTS AND OPEN SPACE AUTHORITY FUND (SOSA)
SOSA was created by the City Council in 1974 for the acquisition and development of open space within the City and the development of local sports activities.

Draft

184

Solid
Waste Cemetery
ASSETS
Current assets:

Cash and investments:

Pooled cash and investments 10,795,880$ 4,514,740$ Receivables (net of allowance for uncollectible):

Accounts 6,947,704 10
Due from other funds - 286,207 Total current assets 17,743,584 4,800,957
Noncurrent assets:

Restricted cash 1,701,112 -
Capital assets:

Land - 1,096,874
Construction in progress - -
Buildings, infrastructure and land improvements 127,362 1,280,641 Equipment 37,170 12,150
164,532 2,389,665
Less accumulated depreciation 94,479 1,155,455 Net capital assets 70,053 1,234,210
Total noncurrent assets 1,771,165 1,234,210
Total assets 19,514,749 6,035,167

DEFERRED OUTFLOWS OF RESOURCES
OPEB related items 13,645 10,258
Pension related items 663,023 204,179
Total deferred outflows of resources 676,668 214,437

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2025

Combining Statement of Net Position
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185

Santa Clara Sports and TOTAL
Convention Open Space Non-Major
Center Authority Enterprise Funds
13,423,310$ 6,568$ 28,740,498$ 3,449,982 - 10,397,696 - - 286,207 16,873,292 6,568 39,424,401 840,227 - 2,541,339 - 1,995,998 3,092,872 1,679,851 - 1,679,851 80,446,012 - 81,854,015 2,957,268 - 3,006,588 85,083,131 1,995,998 89,633,326 64,885,140 - 66,135,074 20,197,991 1,995,998 23,498,252 21,038,218 1,995,998 26,039,591 37,911,510 2,002,566 65,463,992 - - 23,903 - - 867,202 - - 891,105 (continued)

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2025

Draft

186

Solid
Waste Cemetery

LIABILITIES
Current liabilities:

Accrued liabilities 3,615,919 30,640
Unearned revenue - -
Accrued compensated absences 85,412 22,765 Current portion of landfill closure liability 812,000 - Total current liabilities 4,513,331 53,405
Noncurrent liabilities:

Long-term compensated absences 161,691 43,520 Landfill closure liability 6,645,136 -
Net OPEB liability 208,582 156,815
Net pension liability 4,854,801 1,928,869
Total noncurrent liabilities 11,870,210 2,129,204 Total liabilities 16,383,541 2,182,609

DEFERRED INFLOWS OF RESOURCES
OPEB related items 13,145 9,883
Pension related items 6,398 2,542
Total deferred inflows of resources 19,543 12,425

NET POSITION
Net investment in capital assets 70,053 1,234,210 Restricted for capital projects and other agreements 1,701,112 2,883,385 Unrestricted 2,017,168 (63,025)
Total net position (deficit) 3,788,333$ 4,054,570$

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2025

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187

Santa Clara Sports and TOTAL
Convention Open Space Non-Major
Center Authority Enterprise Funds
3,121,118 - 6,767,677 5,894,304 - 5,894,304 - - 108,177 - - 812,000 9,015,422 - 13,582,158 - - 205,211 - - 6,645,136 - - 365,397 - - 6,783,670 - - 13,999,414 9,015,422 - 27,581,572 - - 23,028 - - 8,940 - - 31,968 20,197,991 1,995,998 23,498,252 840,227 - 5,424,724 7,857,870 6,568 9,818,581 28,896,088$ 2,002,566$ 38,741,557$ June 30, 2025

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF NET POSITION

Draft

188

Solid
Waste Cemetery
Operating revenues:

Charges for services 40,714,561$ 1,007,683$
Other 221,552 2,606
Total operating revenues 40,936,113 1,010,289 Operating expenses:

Salaries and benefits 1,838,506 441,536
Materials, services and supplies 37,964,151 798,347 Depreciation 2,547 6,287
Total operating expenses 39,805,204 1,246,170 Operating income (loss) 1,130,909 (235,881) Nonoperating revenues (expenses):

Interest revenue 46,579 98,405
Rents and royalties 14,153 -
Total nonoperating revenues (expenses) 60,732 98,405 Income (loss) before
contributions and transfers 1,191,641 (137,476) Transfers in 102,564 827,689
Transfers (out) (48,770) (2,637)
Change in net position 1,245,435 687,576
Total net position - beginning 2,560,249 3,374,972 GASB 101 implementation (17,351) (7,978) Total net position - beginning as adjusted 2,542,898 3,366,994 Total net position - ending 3,788,333$ 4,054,570$

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
For the year ended June 30, 2025

Combining Statement of Revenues, Expenses, and Chang es in Fund Net Position

Draft

189

Santa Clara Sports and TOTAL
Convention Open Space Non-Major
Center Authority Enterprise Funds
18,284,460$ -$ 60,006,704$ - - 224,158 18,284,460 - 60,230,862 237,329 6,724 2,524,095 15,630,765 3,929 54,397,192 1,498,922 - 1,507,756 17,367,016 10,653 58,429,043 917,444 (10,653) 1,801,819 309,637 360 454,981 - - 14,153 309,637 360 469,134 1,227,081 (10,293) 2,270,953 426,852 10,200 1,367,305 - - (51,407) 1,653,933 (93) 3,586,851 27,242,155 2,002,659 35,180,035 - - (25,329) 27,242,155 2,002,659 35,154,706 28,896,088$ 2,002,566$ 38,741,557$ For the year ended June 30, 2025

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION

Draft

190

Solid
Waste Cemetery

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 40,507,528$ 1,010,279$
Payments to suppliers (37,263,276) (808,287)
Payments to employees for salaries and benefits (1,777,081) (420,750) Rents and royalties received 14,153 -
Net cash provided (used) by operating activities 1,702,876 (218,758)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Decrease in due from other funds - - Transfers in 102,564 827,689
Transfers (out) (48,770) (2,637)
Cash Flows from Noncapital Financing Activities 53,794 804,768

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets, net - - Cash Flows from Capital and Related
Financing Activities - -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends 46,579 98,405
Cash Flows from Investing Activities 46,579 98,405 Net increase (decrease) in cash and cash
equivalents 1,803,249 684,415
Cash and cash equivalents at beginning of period 10,693,743 3,830,325 Cash and cash equivalents at end of period 12,496,992$ 4,514,740$ Cash and cash equivalents:

Pooled cash and investments 10,795,880$ 4,514,740$ Restricted cash 1,701,112 -
Total cash and cash equivalents 12,496,992$ 4,514,740$

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2025

Combining Statement of Cash Flows
Draft

191

Santa Clara Sports and TOTAL
Convention Open Space Non-Major
Center Authority Enterprise Funds
15,884,185$ -$ 57,401,992$ (13,742,214) (3,929) (51,817,706) (237,329) (6,724) (2,441,884) - - 14,153 1,904,642 (10,653) 3,378,107
- - - 426,852 10,200 1,367,305
- - (51,407) 426,852 10,200 1,295,614
(1,878,494) - (1,878,494) (1,878,494) - (1,878,494) 309,637 360 454,981
309,637 360 454,981
762,637 (93) 3,250,208 13,500,900 6,661 28,031,629
14,263,537$ 6,568$ 31,281,837$
13,423,310$ 6,568$ 28,740,498$
840,227 - 2,541,339 14,263,537$ 6,568$ 31,281,837$
(continued)

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2025

Draft

192

Solid
Waste Cemetery
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating income (loss) 1,130,909$ (235,881)$
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
(Decrease) Increase in due to OPEB system (25,373) (6,031) (Decrease) Increase in due to retirement system 61,182 41,212 Depreciation 2,547 6,287
Change in assets and liabilities:

Receivables, net (207,033) (10)
Accrued liabilities 700,875 (9,940)
Compensated absences 25,616 (14,395)
Unearned revenue - -
Other receipts 14,153 -
Net cash provided (used) by operating activities 1,702,876$ (218,758)$

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2025

Draft

193

Santa Clara Sports and TOTAL
Convention Open Space Non-Major
Center Authority Enterprise Funds
917,444$ (10,653)$ 1,801,819$
- - (31,404) - - 102,394 1,498,922 - 1,507,756 (2,756,020) - (2,963,063) 1,888,551 - 2,579,486 - - 11,221 355,745 - 355,745 - - 14,153 1,904,642$ (10,653)$ 3,378,107$
For the year ended June 30, 2025

CITY OF SANTA CLARA

NON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF CASH FLOWS

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195

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.

The concept of major funds does not extend to internal service funds because they do not do business with outside parties. For the Statement of Activities, the net revenues or expenses of each internal service fund are eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.

However, internal service funds are still presented separately in the Fund financial statements, including the funds below.

AUTOMOTIVE SERVICES
This fund accounts for the maintenance and replacement of vehicles and equipment used by all City departments. The source of revenue for this fund is rental fees charged to the various departments.

TECHNICAL EQUIPMENT SERVICES
This fund accounts for the maintenance and replacement of communication and computer equipment used by City departments. The source of revenue for this fund is rental fees charged to the various departments.

PUBLIC WORKS CAPITAL PROJECTS MANAGEMENT
This fund accounts for the Public Works staff time and non-personnel costs utilized to manage and work on specific capital improvement programs of the City. The source of revenue for this fund is fees charged to the departments requiring Public Works capital project services.

INFORMATION TECHNOLOGY SERVICES
This fund accounts for citywide cost associated with computer and telephone equipment replacement as well as other services including new or upgraded software, additional licenses for new users, and general information technology services provided to all City departments. The source of revenue for this fund is fees charged to the departments that require information technology services.

SPECIAL LIABILITY INSURANCE CLAIMS
This fund was established to account for the cost of claims and administrative costs for the City’s self-insured general liability program.

WORKERS’ COMPENSATION INSURANCE CLAIMS
This fund is used to account for the cost of claims for service connected with injuries and illnesses sustained by members of the City’s work force.

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196

Technical PW Capital
Automotive Equipment Projects
Services Services Management
ASSETS
Current assets:

Cash and investments:

Pooled cash and investments 16,474,128$ 4,320,767$ 1,196,036$ Receivables (net of allowance for
uncollectible):

Accounts 18,757 - - Due from other funds 46,059 - - Materials, supplies and prepaids 4,590,387 - - Total current assets 21,129,331 4,320,767 1,196,036 Noncurrent assets:

Capital assets:

Equipment 44,115,576 8,989,702 - Right-to-use leased assets - - - Right-to-use SBITA - - - Total capital assets 44,115,576 8,989,702 - Less accumulated depreciation 30,159,383 3,799,966 - Net capital assets 13,956,193 5,189,736 - Total noncurrent assets 13,956,193 5,189,736 - Total assets 35,085,524 9,510,503 1,196,036

DEFERRED OUTFLOWS OF RESOURCES
OPEB related items 30,262 - - Pension related items 1,017,366 - - Total deferred outflows of resources 1,047,628 - -

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS

CITY OF SANTA CLARA
June 30, 2025

Combining Statement of Net Position

Draft

197

Special Workers'
Information Liability Compensation
Technology Insurance Insurance
Services Claims Claims TOTAL
5,384,154$ 12,563,348$ 10,449,469$ 50,387,902$ 7,540 1,316,594 710,857 2,053,748 - - - 46,059 - - - 4,590,387 5,391,694 13,879,942 11,160,326 57,078,096 6,040 - - 53,111,318 2,234,821 - - 2,234,821 2,397,211 - - 2,397,211 4,638,072 - - 57,743,350 2,259,394 - - 36,218,743 2,378,678 - - 21,524,607 2,378,678 - - 21,524,607 7,770,372 13,879,942 11,160,326 78,602,703 12,310 - - 42,572 611,779 - - 1,629,145 624,089 - - 1,671,717 (continued)

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2025

Draft

198

Technical PW Capital
Automotive Equipment Projects
Services Services Management

LIABILITIES
Current liabilities:

Accrued liabilities 306,939 120,400 23,927 Interest payable - - - Due to other funds 6,332,318 1,302,869 - Accrued compensated absences 141,034 - - Current portion of lease obligation - - - Current portion of SBITA - - - Total current liabilities 6,780,291 1,423,269 23,927 Noncurrent liabilities:

Long-term portion estimated claims - - - Long-term compensated absences 266,770 - - Long-term lease obligation - - - OPEB pension liability 462,602 - - Net pension liability 6,043,841 - - Total noncurrent liabilities 6,773,213 - - Total liabilities 13,553,504 1,423,269 23,927

DEFERRED INFLOWS OF RESOURCES
OPEB related items 29,154 - - Pension related items 7,965 - - Total deferred inflows of resources 37,119 - -

NET POSITION
Net investment in capital assets 13,956,193 5,189,736 - Unrestricted 8,586,336 2,897,498 1,172,109 Total net position (deficit) 22,542,529$ 8,087,234$ 1,172,109$

COMBINING STATEMENT OF NET POSITION
June 30, 2025

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

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199

Special Workers'
Information Liability Compensation
Technology Insurance Insurance
Services Claims Claims TOTAL
1,020,790 3,022,000 4,126,000 8,620,056 22,051 - - 22,051 - - - 7,635,187 201,460 - - 342,494 89,127 - - 89,127 617,329 - - 617,329 1,950,757 3,022,000 4,126,000 17,326,244 - 7,171,000 17,356,000 24,527,000 381,564 - - 648,334 1,424,882 - - 1,424,882 188,180 - - 650,782 2,764,308 - - 8,808,149 4,758,934 7,171,000 17,356,000 36,059,147 6,709,691 10,193,000 21,482,000 53,385,391 11,859 - - 41,013 3,643 - - 11,608 15,502 - - 52,621 247,340 - - 19,393,269 1,421,928 3,686,942 (10,321,674) 7,443,139 1,669,268$ 3,686,942$ (10,321,674)$ 26,836,408$

COMBINING STATEMENT OF NET POSITION
June 30, 2025

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

Draft

200

Technical PW Capital
Automotive Equipment Projects
Services Services Management
Operating revenues:

Charges for services 10,194,755$ 985,638$ 4,373,674$ Insurance refunds and other - - - Total operating revenues 10,194,755 985,638 4,373,674 Operating expenses:

Salaries and benefits 2,931,520 - 3,512,916 Materials, services and supplies 3,168,886 440,647 459,275 General and administrative - - - Amortization - Right to use assets - - - Depreciation 2,704,625 420,789 - Total operating expenses 8,805,031 861,436 3,972,191 Operating income (loss) 1,389,724 124,202 401,483 Nonoperating revenues (expenses):

Other revenue 398,031 963,000 - Interest expense - - - Gain (loss) on retirement of assets (6,503) - - Total nonoperating revenues (expenses) 391,528 963,000 - Income (loss) before
contributions and transfers 1,781,252 1,087,202 401,483 Transfers in 850,785 - - Transfers (out) - - (198,329) Change in net position 2,632,037 1,087,202 203,154 Total net position - beginning 19,983,600 7,000,032 968,955 GASB 101 implementation (73,108) - - Total net position - beginning as adjusted 19,910,492 7,000,032 968,955 Total net position - ending 22,542,529$ 8,087,234$ 1,172,109$

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
For the year ended June 30, 2025

Combining Statement of Revenues, Expenses, and Chang es in Fund Net Position

Draft

201

Special Workers'
Information Liability Compensation
Technology Insurance Insurance
Services Claims Claims TOTAL
15,239,338$ 6,529,999$ 6,181,936$ 43,505,340$ - 3,356,624 31,408 3,388,032 15,239,338 9,886,623 6,213,344 46,893,372 2,226,407 - - 8,670,843 9,935,043 - - 14,003,851 - 12,000,070 6,016,864 18,016,934 618,837 - - 618,837 101 - - 3,125,515 12,780,388 12,000,070 6,016,864 44,435,980 2,458,950 (2,113,447) 196,480 2,457,392 - - - 1,361,031 (63,012) - - (63,012) - - - (6,503) (63,012) - - 1,291,516 2,395,938 (2,113,447) 196,480 3,748,908 - 1,742,287 - 2,593,072 - - - (198,329) 2,395,938 (371,160) 196,480 6,143,651 (601,769) 4,058,102 (10,518,154) 20,890,766 (124,901) - - (198,009) - (726,670) 4,058,102 (10,518,154) 20,692,757 1,669,268$ 3,686,942$ (10,321,674)$ 26,836,408$

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
For the year ended June 30, 2025

Draft

202

Technical PW Capital
Automotive Equipment Projects
Services Services Management

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 10,187,939$ 985,638$ 4,373,674$ Payments to suppliers (5,087,104) (320,247) (217,352) Payments to employees for salaries and benefits (2,869,984) - (3,512,916) Internal activity - payments to other funds (112,801) - (241,378) Claims paid - - - Other receipts 398,031 963,000 - Net cash provided (used) by operating activities 2,516,081 1,628,391 402,028

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
(Increase) in due from other funds (4,846) - - Increase in due to other funds 480,365 82,266 - Transfers in 850,785 - - Transfers (out) - - (198,329) Cash Flows from Noncapital Financing Activities 1,326,304 82,266 (198,329)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets, net (4,263,149) (5,610,525) - Principal payment on capital debt - - - Interest paid on capital debt - - - Cash Flows from Capital and Related
Financing Activities (4,263,149) (5,610,525) - Net increase (decrease) in cash and cash
equivalents (420,764) (3,899,868) 203,699 Cash and investments at beginning of period 16,894,892 8,220,635 992,337 Cash and investments at end of period 16,474,128$ 4,320,767$ 1,196,036$ Cash and cash equivalents:

Pooled cash and investments 16,474,128$ 4,320,767$ 1,196,036$ Total cash and cash equivalents 16,474,128$ 4,320,767$ 1,196,036$

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2025

Combining Statement of Cash Flows
Draft

203

Special Workers'
Information Liability Compensation
Technology Insurance Insurance
Services Claims Claims TOTAL
15,258,461$ 9,886,623$ 4,006,639$ 44,698,974$ (9,824,452) - - (15,449,155) (2,161,114) - - (8,544,014) (1,237) - - (355,416) - (11,861,885) (5,628,220) (17,490,105) - - 2,041,016 3,402,047 3,271,658 (1,975,262) 419,435 6,262,331 - - - (4,846) - - - 562,631 - 1,742,287 - 2,593,072 - - - (198,329) - 1,742,287 - 2,952,528 - - - (9,873,674) (699,769) - - (699,769) (48,267) - - (48,267) (748,036) - - (10,621,710) 2,523,622 (232,975) 419,435 (1,406,851) - 2,860,532 12,796,323 10,030,034 51,794,753 5,384,154$ 12,563,348$ 10,449,469$ 50,387,902$ 5,384,154$ 12,563,348$ 10,449,469$ 50,387,902$ 5,384,154$ 12,563,348$ 10,449,469$ 50,387,902$ (continued)

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2025

Draft

204

Technical PW Capital
Automotive Equipment Projects
Services Services Management
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating income (loss) 1,389,724$ 124,202$ 401,483$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:
(Decrease) Increase in lease and SBITA obligation - - - (Decrease) Increase in due to OPEB system (17,792) - - (Decrease) Increase in due to retirement system 57,210 - - Depreciation 2,704,625 420,789 - Change in assets and liabilities:

Receivables, net (6,816) - - Inventory (2,136,500) - - Accrued liabilities 105,481 120,400 545 Long-term portion estimated claims - - - Compensated absences 22,118 - - Other receipts 398,031 963,000 - Net cash provided (used) by operating activities 2,516,081$ 1,628,391$ 402,028$ NONCASH TRANSACTIONS:

Addtion of Leased Assets -$ -$ -$ Addition of Leased Liabilities -$ -$ -$

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2025

Draft

205

Special Workers'
Information Liability Compensation
Technology Insurance Insurance
Services Claims Claims TOTAL
2,458,950$ (2,113,447)$ 196,480$ 2,457,392$ 618,836 - - 618,836 (7,237) - - (25,029) 60,537 - - 117,747 101 - - 3,125,515 19,124 (1,312,617) (279,345) (1,579,654) - - 27,785 (2,108,715) 109,354 335,802 (181,485) 490,097 - 1,115,000 656,000 1,771,000 11,993 - - 34,111 - - - 1,361,031 3,271,658$ (1,975,262)$ 419,435$ 6,262,331$ 1,576,376$ -$ -$ 1,576,376$ (1,576,376)$ -$ -$ (1,576,376)$

CITY OF SANTA CLARA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2025

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207

CITY OF SANTA CLARA

COMBINING FIDUCIARY FUNDS

PRIVATE PURPOSE TRUST FUNDS
Private Purpose Trust Funds are used to report trust arrangements, other than pension and investment trusts, under which principal and income benefit individuals, private organizations, or other governments. The Private Purpose Trust Funds are described below:

CHARITABLE TRUST
This fund accounts for the various gifts, donations and bequests received by the City for distribution to various nonprofit organizations as determined by the Mission City Community Fund.

SUCCESSOR AGENCY
California State laws ABx1 26 and AB 1484 provided for the dissolution of California Redevelopment Agencies effective January 31, 2012 and the transfer of all non-housing Agency assets to the Successor Agency Redevelopment Obligation Retirement Fund.

CUSTODIAL FUNDS
Custodial Funds are presented separately from the Government-wide and Fund financial statements.

Custodial Funds account for assets held by the City as an agent for individuals, governmental entities, and non- public organizations. These funds include the following:

EMPLOYEE CONTRIBUTED EMERGENCY PAID LEAVE POOL FUND
This fund is used to account for monies collected and disbursed for the employees paid leave program that is administered by respective bargaining units. The City does not make contribution to this fund.

SPECIAL ASSESSMENTS
This fund accounts for monies collected and disbursed from special assessment districts where the City is not obligated for the outstanding debt payments.

CUSTODIAL DEPOSITS
This fund accounts for various miscellaneous deposits for other entities.

Draft

208

Total
Charitable Successor Private Purpose
Trust Agency Trust
ASSETS
Current assets
Cash and investments:

Pooled cash and investments 941,456$ 541,228$ 1,482,684$ Receivables (net of allowance for uncollectibles):

Interest and rent 6,177 469,575 475,752 Leases receivable - 594,526 594,526 Total current assets 947,633 1,605,329 2,552,962 Noncurrent assets
Leases receivable- noncurrent - 37,812,597 37,812,597 Investment with fiscal agent-noncurrent 2,893,407 - 2,893,407 Land held for resale - 251,159 251,159 Total noncurrent assets 2,893,407 38,063,756 40,957,163 - Total Assets 3,841,040 39,669,085 43,510,125

LIABILITIES
Unearned revenues - 122,008 122,008 Due to other agencies - 520,000 520,000 Total Liabilities - 642,008 642,008

DEFERRED INFLOWS OF RESOURCES
Leases related - 35,405,346 35,405,346 Total deferred inflows of resources - 35,405,346 35,405,346

NET POSITION
Held in trust for private purpose 3,841,040 - 3,841,040 - 3,621,731 3,621,731 - Total Net Position 3,841,040$ 3,621,731 $ 7,462,771 $

CITY OF SANTA CLARA

PRIVATE PURPOSE TRUST FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2025
Restricted for individuals, organization
and other governments

Private Purpose Trust Funds

Combining Statement of Net Position

Draft

209

Total
Charitable Successor Private Purpose
Trust Agency Trust

ADDITIONS
Investment income:

Net change in fair value of investments 125,280$ -$ 125,280$ Interest and rents 111,733 3,286,529 3,398,262 Net investment income 237,013 3,286,529 3,523,542 Gain from sale of property - 24,367,222 24,367,222 Total additions 237,013 27,653,751 27,890,764

DEDUCTIONS
General and administrative 117,787 3,640 121,427 Pass through to the County of Santa Clara - 26,918,266 26,918,266 Loss from lease termination - 143,657 143,657 Total deductions 117,787 27,065,563 27,183,350 119,226 588,188 707,414 Net position - beginning 3,721,814 3,033,543 6,755,357 Net position - ending 3,841,040$ 3,621,731$ 7,462,771$

CITY OF SANTA CLARA

PRIVATE PURPOSE TRUST FUNDS

COMBINING STATEMENT OF CHANGES IN NET POSITION
For the Year Ended June 30, 2025
Net increase (decrease) in fiduciary net position

Combining Statement of Changes in Net Position
Draft

210

Employee Contributed Total
Emergency Paid Special Custodial Custodial
Leave Pool Assessments Deposits Funds
ASSETS
Cash and investments:

Pooled cash and investments 505,293$ 598,557 $ 21,862 $ 1,125,712$ Total cash 505,293 598,557 21,862 1,125,712 Total Assets 505,293 598,557 21,862 1,125,712

NET POSITION
505,293 598,557 21,862 1,125,712 - Total Net Position 505,293$ 598,557 $ 21,862 $ 1,125,712$

CITY OF SANTA CLARA

CUSTODIAL FUNDS

COMBINING STATEMENT OF NET POSITION
June 30, 2025
Restricted for individuals, organizations
and other governments

Custodial Funds

Combining Statement of Net Position

Draft

211

Employee Contributed Total
Emergency Paid Special Custodial Custodial
Leave Pool Assessments Deposits Funds

ADDITIONS
Contributions:

Employee contributions 107,250$ - $ - $ 107,250$ Special assessments - 3,501,359 - 3,501,359 Gifts and bequest - - 2,020 2,020 Total contributions 107,250 3,501,359 2,020 3,610,629 Investment income:

Interest and rents 16,235 - - 16,235 Net investment income 16,235 - - 16,235 Total additions 123,485 3,501,359 2,020 3,626,864

DEDUCTIONS
General and administrative - - 770 770 Benefits paid 36,010 - - 36,010 Pass through to the Stadium Authority - 3,408,575 - 3,408,575 Total deductions 36,010 3,408,575 770 3,445,355 87,475 92,784 1,250 181,509 Net position - beginning 417,818 505,773 20,612 944,203 Net position - ending 505,293$ 598,557$ 21,862 $ 1,125,712$

CITY OF SANTA CLARA

CUSTODIAL FUNDS

COMBINING STATEMENT OF CHANGES IN NET POSITION
For the Year Ended June 30, 2025
Net increase (decrease) in fiduciary net position

Combining Statement of Changes in Net Position

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Statistical Section (Unaudited)

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215

CITY OF SANTA CLARA

STATISTICAL SECTION
This part of the City of Santa Clara’s Annual Comprehensive Report provides detailed information to better understand the data presented within the financial statements, note disclosures, and required supplementary information.

TABLES
FINANCIAL TRENDS 1 - 4
Contains trend information to help the reader understand how the City’s financial performance has changed over time.

REVENUE CAPACITY 5 - 10
Contains information to help the reader assess the City’s most significant local revenue sources, the property taxes and electric utility charges.

DEBT CAPACITY 11 - 15
Presents information to assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

DEMOGRAPHIC AND ECONOMIC INFORMATION 16 - 17
Offers information to help the reader understand the environment within which the City’s financial activities take place.

OPERATING INFORMATION 18 - 21
Contains service and infrastructure data to help the reader understand how the City’s financial report relates to the services the City provides and the activities it performs.

City of Santa Clara
Draft

216

CITY OF SANTA CLARA

NET P OSITION BY COMP ONENT
Las t Ten Fis cal Years
(Accrual Bas is o f Ac co unting)
(In Tho us ands )
Table 1
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Go vernmental Activities :

Net Investment in Capital Assets 670,046$ 650,220$ 632,383$ 625,872$ 626,115$ 613,187$ 585,201$ 553,135$ 532,255$ 507,390$ Restricted 417,623 353,262 342,466 317,290 275,653 260,872 244,775 246,048 242,393 207,996 Unrestricted (253,548) (281,658) (286,878) (283,492) (289,637) (224,176) (169,513) (180,368) (135,818) (125,913) 834,121$ 721,824$ 687,971$ 659,670$ 612,131$ 649,883$ 660,463$ 618,815$ 638,830$ 589,473$ Bus ines s - Type Activitie s :

Net Investment in Capital Assets 1,087,706$ 1,150,380$ 1,088,899$ 1,079,607$ 1,042,058$ 974,612$ 953,098$ 917,738$ 882,187$ 844,911$ Restricted 392,094 384,617 332,074 333,069 234,289 249,516 185,267 174,595 142,459 133,718 Unrestricted 769,920 407,202 (1) 218,381 112,922 100,116 80,997 31,258 (24,141) (13,132) (61,843) 2,249,720$ 1,942,199$ 1,639,354$ 1,525,598$ 1,376,463$ 1,305,125$ 1,169,623$ 1,068,192$ 1,011,514$ 916,786$ P rimary Go vernment
Net Investment in Capital Assets 1,757,752$ 1,800,600$ 1,721,282$ 1,705,479$ 1,668,173$ 1,587,799$ 1,538,299$ 1,470,873$ 1,414,442$ 1,352,301$ Restricted 809,717 737,879 674,540 650,359 509,942 510,388 430,042 420,643 384,852 341,714 Unrestricted 516,372 125,544 (1) (68,497) (170,570) (189,521) (143,179) (138,255) (204,509) (148,950) (187,756) 3,083,841$ 2,664,023$ 2,327,325$ 2,185,268$ 1,988,594$ 1,955,008$ 1,830,086$ 1,687,007$ 1,650,344$ 1,506,259$ Note:
(1) Restated in 2025
Source: Finance Office, City of Santa Clara.

To tal Go ve rnmental Activities
Net P o s itio n:

To tal Bus ines s - Type Activities
Net P o s itio n
To tal P rimary Go vernment
Net P o s itio n

1. Net Position by Component – Last Ten Fiscal Year s
Draft

217

2. Changes in Net Position – Last Ten Fiscal Years

Table 2
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Expens es :

Go vernmental Activities :

General Administration 35,444$ 33,144$ 32,353$ 37,676$ 33,671$ 26,436$ 30,328$ 25,467$ 20,636$ 22,692$ City Clerk 1,556 1,209 1,329 1,171 1,414 1,292 1,263 864 1,020 309 City Attorney 2,500 2,319 2,529 2,079 1,890 1,945 1,700 1,000 860 270 Human Resources 2,496 1,890 2,039 2,136 1,616 2,751 2,011 1,886 1,675 748 Finance 10,814 8,824 10,031 10,325 10,188 10,497 7,111 6,253 5,323 1,633 Public Works 47,495 46,164 44,839 38,837 41,951 46,176 45,725 38,276 34,314 30,365 Parks and Recreation 27,504 27,659 25,907 20,520 20,266 27,491 23,285 21,369 18,616 17,106 Public Safety:

Police 101,025 97,507 88,389 71,575 87,563 89,477 72,449 76,742 63,612 58,599 Fire 84,243 79,840 73,154 58,117 71,025 67,767 58,120 55,372 43,384 37,120 Planning and Inspection 20,009 18,724 19,218 15,487 15,537 16,281 12,879 10,614 9,162 7,855 Library 13,757 13,056 12,766 10,925 10,864 13,773 12,687 12,302 10,553 10,718 Interest on long term debt 382 546 349 408 487 560 630 695 749 803 To tal Go vernmental Activities Expens es (Net) 347,225 330,882 312,903 269,256 296,472 304,446 268,188 250,840 209,904 188,218 Bus ines s -Type Activities :

Utilities:

Electric 642,856 584,073 658,600 552,552 454,503 453,112 408,812 437,419 402,977 386,239 Water 63,997 58,039 49,010 45,578 45,353 43,196 46,067 41,777 35,649 32,254 Sewer 55,321 36,162 86,208 30,523 30,103 28,614 29,462 25,689 23,047 19,081 Water Recycling 10,058 8,995 6,605 5,700 5,844 6,344 5,909 4,972 4,858 2,672 Solid Waste 39,695 37,809 34,196 32,997 29,769 25,567 25,393 23,363 26,621 20,142 Cemetery 1,224 1,228 1,395 1,350 1,359 1,659 1,257 1,174 820 781 Sports and Open Space Authority 11 10 10 9 8 10 9 10 53 102 Santa Clara Golf and Tennis Club - - - - - 1,675 2,837 2,951 2,772 2,777 Santa Clara Convention Center 17,367 18,926 16,530 11,829 4,667 16,738 12,967 8,423 8,478 9,075 Santa Clara Stadium Authority 79,643 91,047 61,818 65,308 41,181 79,539 103,899 111,210 105,593 147,435 To tal Bus ines s -Type Activities Expens es 910,172 836,289 745,846 612,787 656,454 636,612 656,988 610,868 620,558 557,995 To tal P rimary Expens es 1,257,397$ 1,167,171$ 1,015,102$ 909,259$ 960,900$ 904,800$ 907,828$ 820,772$ 808,776$ 731,637$ Source: Finance Office, City of Santa Clara

CITY OF SANTA CLARA

CHANGES IN NET P OSITION
Las t Ten Fis cal Years
(Accrual Bas is o f Acco unting)
(In Tho us ands )

Draft

218
Table 2
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
P ro gram Revenues :

Go vernmental Activities :

Charges for Services:

General Administration 18,456$ 21,733$ 14,252$ 9,592$ 3,475$ 8,837$ 7,904$ 398$ 1,651$ 1,247$ Parks and Recreation 3,949 3,589 3,225 2,049 891 1,495 3,431 3,126 3,169 3,114 Planning and Inspection 20,094 18,953 21,755 21,274 16,470 15,564 19,048 12,837 13,658 15,065 Other Programs 22,148 19,205 17,368 15,282 12,604 15,057 17,476 21,303 19,658 23,022 Operating Grants and Contributions 20,979 23,117 6,651 34,060 17,053 9,455 8,457 7,172 4,723 5,809 Capital Gains and Contributions 20,535 11,267 8,534 6,072 11,598 29,619 23,634 20,273 14,280 12,100 To tal Go vernmental Activities P ro gram Revenues 106,161 97,864 71,785 88,329 62,091 80,027 79,950 65,109 57,139 60,357 Bus ines s -Type Activities :

Utilities:

Electric 866,392 784,316 751,409 611,549 526,710 507,494 460,263 475,434 459,849 412,441 Water 66,475 57,514 50,519 51,606 52,530 51,373 47,017 46,685 39,953 31,955 Sewer 57,414 48,791 57,998 116,443 16,587 71,041 44,763 50,942 43,176 41,659 Water Recycling 9,950 8,797 6,395 6,072 6,182 6,304 6,299 5,479 4,834 3,841 Solid Waste 40,950 39,287 35,944 34,851 26,603 26,645 25,983 23,544 22,585 21,854 Cemetery 1,010 775 932 1,024 844 585 634 666 799 693 Sports and Open Space Authority - - - - - - - - 58 72 Santa Clara Golf and Tennis Club - - - - - 674 2,001 1,991 1,780 1,666 Santa Clara Convention Center 18,284 19,671 17,429 8,527 1,221 14,252 12,734 9,061 9,581 7,399 Santa Clara Stadium Authority
(1) 86,747 107,695 74,438 59,528 38,682 87,976 112,550 112,039 110,059 146,619 To tal Bus ines s -Type Activities P ro gram Revenues 1,147,222 1,066,846 995,064 889,600 669,359 766,344 712,244 725,841 692,674 668,199 To tal P rimary Go vernment P ro gram Revenues 1,253,383 1,164,710 1,066,849 977,929 731,450 846,371 792,194 790,950 749,813 728,556 Net (Expens e) Revenues :

Governmental Activities (241,064) (233,018) (241,118) (180,927) (234,381) (224,419) (188,238) (185,731) (152,765) (127,861) Business-Type Activities 237,050 230,557 80,691 143,754 56,572 109,890 75,632 68,853 81,806 47,641 To tal P rimary Go vernment Net (Expens e) Revenues (4,014)$ (2,461)$ (160,426)$ (37,173)$ (177,809)$ (114,529)$ (112,606)$ (116,878)$ (70,959)$ (80,220)$ Note:
(1) Restated in 2025.

Source: Finance Office, City of Santa Clara
(In Tho us ands )
(co ntinued)

CITY OF SANTA CLARA

CHANGES IN NET P OSITION
Las t Ten Fis cal Years
(Accrual Bas is o f Acco unting)

Draft

219

CHANGES IN NET P OSITION
Las t Ten Fis cal Years
(Accrual Bas is o f Acco unting)
Table 2
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
General Revenue and o ther changes in Net P o s itio n Go vernmental Activities :

Taxes:

Sales 79,352$ 61,776$ 64,498$ 56,902$ 56,178$ 55,270$ 65,036$ 56,320$ 55,751$ 57,797$ Ad Valorem Property 95,319 90,176 84,047 74,188 68,358 65,132 58,502 54,965 50,943 45,627 Transient occupancy 26,993 22,347 18,989 10,812 2,949 15,994 23,229 20,580 20,484 20,557 Other 7,407 7,116 6,738 7,317 6,019 5,967 5,955 6,392 5,671 5,510 Internal Governmental, unrestricted:

Motor Vehicle in-lieu - - - - - - - - 55 49 Contribution in-lieu of taxes 38,882 33,144 29,584 27,259 24,548 22,710 21,304 21,986 21,117 19,057 Investment earnings 26,226 17,939 13,299 5,709 6,451 8,700 6,990 4,600 3,466 2,178 Net increase (decrease) in the fair value of investments 7,433 9,969 (5,788) (13,688) (5,207) 6,531 8,082 (2,452) (3,217) 1,049 Equity in income (losses) of joint ventures - - - - - 95 28 25 49 44 Rents and royalties 23,092 9,754 10,030 7,205 9,852 9,032 9,762 10,494 11,410 13,642 Other 25,547 12,125 43,058 58,511 24,590 22,513 30,257 16,243 39,956 8,551 Special item - - - - - - - - - (24,451) Transfer 5,051 2,524 4,964 (5,747) (5,765) 1,895 743 1,457 (3,563) 31,186 To tal Go vernment General Revenue and Special Item 335,302 266,870 269,419 228,468 187,973 213,839 229,888 190,610 202,122 180,796 Bus ines s -Type Activities :
(1)
Investment earnings 57,817 35,799 28,656 11,587 13,569 16,709 16,618 15,755 13,031 16,894 Net increase (decrease) in the fair value of investments 16,751 11,712 (3,863) (26,594) (6,246) 10,798 9,921 (3,584) (3,672) 1,218 Equity in gains of joint venture 3,613 18,556 8,533 14,639 - - - - - - Gain (loss) on retirement of assets 7 1 - - 1,678 - - - - 29,751 Transfer (5,051) (2,524) (4,964) 5,747 5,765 (1,895) (743) (1,457) 3,563 (31,186) To tal Bus ines s -Type General Revenue 73,137 63,544 28,362 5,379 14,766 25,612 25,796 10,714 12,922 16,677 To tal P rimary Go vernment General Revenue 408,439 330,414 297,781 233,847 202,739 239,451 255,684 201,324 215,044 197,473 Change in Net P o s itio n - Go vernmental Activities 94,238 33,852 28,301 47,541 (46,408) (10,580) 41,650 4,879 49,357 52,935 Change in Net P o s itio n - Bus ines s -Type Activities 310,187 294,101 109,053 149,133 71,338 135,502 101,428 79,567 94,728 64,318 Change in Net P o s itio n - To tal P rimary Go vernment 404,425 327,953 137,355 196,674 24,930 124,922 143,078 84,446 144,085 117,253 Net P o s itio n - Beginning o f Year 2,664,023 2,327,325 2,185,268 1,988,594 1,955,007 1,830,085 1,687,007 1,650,344 1,506,259 1,389,006 Change o f Acco unting P o licy 25,183 - - - - - - - - - GASB75 Implementatio n - - - - - - - (47,783) - - GASB84 Implementatio n - - - - 8,657 - - - - - GASB87 Implementatio n 8,745 4,702 - - - - - - - GASB101 Implementatio n (9,790) - - - - - - - - - Net P o s itio n - End o f Year - To tal P rimary Go vernment 3,083,841$ 2,664,023$ 2,327,325$ 2,185,268$ 1,988,594$ 1,955,007$ 1,830,085$ 1,687,007$ 1,650,344$ 1,506,259$ (1) Equity in income (losses) of joint ventures were included in the Electric and Sewer Business-Type Activities beginning in fiscal year 2016.

Source: Finance Office, City of Santa Clara
(co ntinued)
(In Tho us ands )

CITY OF SANTA CLARA

Draft

220
Table 3
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
General Fund:

Nonspendable 8,296$ 5,880$ 3,396$ 7,244$ 13,767$ 24,260$ 24,421$ 25,002 $ 13,837 $ 13,517 $ Restricted 39,817 31,841 24,689 23,291 25,943 28,507 17,652 13,585 7,083 11,865 Committed 12,776 18,577 18,575 23,985 40,280 36,978 30,902 41,914 58,580 64,111 Assigned 16,980 15,756 13,863 9,844 7,131 5,861 7,879 7,473 4,639 4,875 Unassigned 163,215 109,265 92,793 76,751 90,681 122,969 147,739 107,801 107,404 103,430 To tal General Fund 241,084 181,319 153,316 141,115 177,802 218,575 228,593 195,775 191,543 197,798 All o ther Go vernmental Funds :

Restricted 146,815 135,624 137,384 110,448 88,486 89,256 86,802 91,290 89,818 67,612 Committed 101,968 83,629 78,205 73,821 50,558 44,757 45,345 40,473 44,936 38,953 To tal All Other Go vernmental Funds 248,783 219,253 215,589 184,269 139,044 134,013 132,147 131,763 134,754 106,565 To tal Go vernmental Funds 489,867$ 400,572$ 368,905$ 325,384$ 316,846$ 352,588$ 360,740$ 327,538 $ 326,297 $ 304,363 $

CITY OF SANTA CLARA

FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(In Thousands)

3. Fund Balances – Governmental Funds – Last Ten Fi scal Years

Draft

221
Table 4
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
REVENUES:

Taxes:

Sales 79,352$ 61,776 $ 64,498$ 56,902$ 56,178$ 55,270$ 65,036$ 56,321$ 55,750$ 57,796$ Ad valorem property 95,932 90,710 84,599 74,630 68,773 65,498 58,502 54,965 50,943 45,627 Transient occupancy 26,993 22,347 18,989 10,812 2,949 15,994 23,229 20,580 20,484 20,557 Other 7,407 7,116 6,738 7,317 5,824 5,967 5,955 6,392 5,671 5,510 Licenses, permits, fees and penalties 21,677 20,151 18,390 16,182 12,568 11,476 16,478 8,665 10,536 11,530 Intergovernmental 31,951 30,730 13,299 39,929 22,589 19,905 29,685 13,920 15,269 8,570 Charges for services 60,728 59,312 51,976 47,194 38,171 44,029 49,067 45,237 42,941 46,938 Contribution in-lieu of taxes 38,882 33,143 29,584 27,259 24,548 22,710 21,304 21,986 21,117 19,057 Interest and rents 50,183 30,430 26,065 13,220 16,161 17,673 16,927 15,223 14,636 15,617 Net increase (decrease) in the fair value of investments 7,433 9,969 (5,788) (13,688) (5,207) 6,531 8,082 (2,452) (3,217) 1,049 Other 18,948 8,860 56,381 42,033 17,161 17,955 15,021 11,957 32,209 9,578 TOTAL REVENUES 439,486$ 374,544 $ 364,731$ 321,790$ 259,715$ 283,008$ 309,286$ 252,794$ 266,339$ 241,829$ Source: Finance Office, City of Santa Clara.

CITY OF SANTA CLARA
(In Thousands)
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)

CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS

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

222
Table 4
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016

EXP ENDITURES
Current:

General Administration 36,793$ 41,322$ 36,303$ 42,252$ 37,273$ 28,927$ 36,093$ 28,997$ 24,265$ 23,743$ City Clerk 2,155 1,747 1,793 1,618 1,697 1,429 1,440 1,361 1,594 1,007 City Attorney 3,129 2,835 3,062 2,681 2,330 2,154 2,006 1,690 1,658 1,500 Human Resources 4,381 3,521 3,698 3,837 3,201 3,876 3,151 3,175 2,993 2,616 Finance 21,223 18,081 18,111 16,576 15,852 14,924 11,697 10,484 9,725 9,319 Public Works 34,117 31,700 30,175 28,158 28,443 28,186 31,595 25,595 24,018 20,088 Parks and Recreation 23,300 23,218 22,511 19,890 17,822 22,551 20,026 18,882 17,364 16,162 Public Safety:

Police 91,973 84,981 81,136 77,590 74,918 74,168 62,799 67,841 62,290 61,015 Fire 79,018 72,078 68,137 62,203 59,799 56,421 50,975 49,043 42,550 39,129 Planning and Inspection 20,390 18,879 19,106 16,174 14,712 13,534 11,521 9,896 9,156 8,231 Library 12,010 10,759 10,732 10,011 8,879 10,392 10,234 10,426 9,113 9,479 Capital Outlay 21,760 31,100 34,798 19,261 30,514 24,021 30,382 19,933 29,329 13,434 Debt Service:

Principal payments 2,711 2,238 2,077 2,009 1,930 1,859 1,786 1,731 1,674 1,620 Interest and fiscal fees 475 622 504 498 572 644 712 767 825 879 Bond issuance cost - - - - - - - 7 2 1 TOTAL EXP ENDITURES 353,435 343,081 332,143 302,758 297,942 283,086 274,417 249,828 236,556 208,223

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXP ENDITURES 86,051 31,463 32,588 19,032 (38,227) (78) 34,869 2,966 29,783 33,606 OTHER FINANCING SOURCES (USES):

SBITA liabilities issued 586 2,078 8,202 - - - - - - - Lease liabilities issued - - - 18 - - - - - - Transfers in 45,749 33,747 27,001 56,105 49,402 29,003 43,334 21,381 44,983 58,473 Transfers out (43,092) (35,620) (24,270) (66,617) (55,575) (37,076) (45,001) (23,106) (52,832) (27,581) TOTAL OTHER FINANCING SOURCES (USES) 3,243 205 10,933 (10,494) (6,173) (8,073) (1,667) (1,725) (7,849) 30,892

NET CHANGE IN FUND BALANCES
BEFORE SP ECIAL ITEM 89,294$ 31,668$ 43,521$ 8,538$ (44,400)$ (8,151)$ 33,202$ 1,241$ 21,934$ 64,498$

SP ECIAL ITEM-ASSET TRANSFERRED

TO LIABILITIES ASSUMED BY SUCCESSOR
AGENCY - - - - - - - - - (842)

NET CHANGE IN FUND BALANCES AFTER
SP ECIAL ITEM 89,294$ 31,668$ 43,521$ 8,538$ (44,400)$ (8,151)$ 33,202$ 1,241$ 21,934$ 63,656$ DEBT SERVICE AS A P ERCENTAGE OF 3,186 2,860 2,581 2,507 2,502 2,503 2,498 2,505 2,501 2,500 NON-CAP ITAL EXP ENDITURES 1 % 1% 1% 1% 1% 1% 1% 1% 1% 1% Source: Finance Office, City of Santa Clara.

CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
(continued)

CITY OF SANTA CLARA
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(In Thousands)
Draft

223
Table 5
Ratio of Net
Fiscal Year Net Local State Net Net Total Assessed Valuation % Growth Total Direct Ending Secured Assessed Unsecured Assessed Assessed To Total Assessed of Assessed Tax June 30 Roll (1)
Valuation Roll Valuation Valuation Valuation Valuation Rate 2015 / 16 27,659,960$ 4,183 $ 5,157,346$ 32,821,489 $ 32,927,777$ 99.68% 14.56% 1.16% 2016 / 17 30,672,596 4,183 5,856,885 36,533,664 36,638,297 99.71% 11.31% 1.15% 2017 / 18 33,449,607 3,896 6,553,560 40,007,063 40,109,539 99.74% 9.51% 1.16% 2018 / 19 36,596,483 354 7,266,592 43,863,429 43,964,914 99.77% 9.64% 1.13% 2019 / 20 38,502,828 870 7,629,244 46,132,942 46,232,453 99.78% 5.17% 1.20% 2020 / 21 42,047,766 870 7,972,493 50,021,129 50,118,954 99.80% 8.43% 1.18% 2021 / 22 44,162,052 870 8,007,077 52,170,000 52,264,729 99.82% 4.30% 1.19% 2022 / 23 48,144,003 870 8,688,804 56,833,678 56,926,788 99.84% 8.94% 1.17% 2023 / 24 52,144,207 1,074 8,829,840 60,975,121 61,070,198 99.84% 7.29% 1.17% 2024 / 25 56,416,225 1,074 9,026,763 65,444,063 65,538,325 99.86% 7.33% 1.16% Note:
(1) Net of Home Owner Property Tax Relief.

Source: County of Santa Clara, Department of Finance

CITY OF SANTA CLARA

ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years
(In Thousands)

5. Assessed and Estimated Actual Value of Taxable P roperty – Last Ten Fiscal Years

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CITY OF SANTA CLARA

PROPERTY TAX RATES
(Per $100 Assessed Valuation)
Direct and Overlapping Governments
Last Ten Fiscal Years
Table 6
Fiscal Santa
Year Ending Clara School Special
June 30 County Districts Districts Total
2015 / 16 1.0388% 0.1174% 0.0057% 1.1619%
2016 / 17 1.0388% 0.1014% 0.0086% 1.1488%
2017 / 18 1.0388% 0.1028% 0.0062% 1.1478%
2018 / 19 1.0388% 0.0905% 0.0042% 1.1335%
2019 / 20 1.0388% 0.1472% 0.0041% 1.1901%
2020 / 21 1.0388% 0.1356% 0.0037% 1.1781%
2021 / 22 1.0388% 0.1318% 0.0051% 1.1757%
2022 / 23 1.0388% 0.1150% 0.0044% 1.1582%
2023 / 24 1.0388% 0.1147% 0.0041% 1.1576%
2024 / 25 1.0388% 0.1085% 0.0041% 1.1514%
Tax rate limit: A state constitutional amendment (Proposition 13) commencing with fiscal 1979 provided that the tax rate was limited to 1% of full cash value, levied only by the County and shared with all other jurisdictions. All jurisdictions may levy a tax rate for voter approved debt.