_____________________________________________________________________
MONTHLY FINANCIAL STATUS REPORT
January 2026
1 City of Santa Clara
Financial Status Report as of January 31, 2026
This report summarizes the City’s financial performance for the month ended January 31, 2026.
Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, Internal Service Funds, and Capital Improvement Funds. Financial information included in this report is unaudited.
Economic Outlook
The Spring 2026 UCLA Anderson Forecast points to a shift in economic momentum with strong projected economic growth approaching 3% in 2026. “After momentarily stuttering in 2025 in the face of the highest tariff rates in a century, the U.S. economy is expected to resume a brisk pace of nearly 3% GDP growth in 2026. This expansion is fueled by significant fiscal stimulus, through income tax cuts, looser financial conditions, and an expanding boom in AI capital expenditures. Supporting this growth in demand are the continued gains in productivity observed since the post-pandemic recovery. While the labor market is projected to strengthen in response to rising demand, restrictive immigration policies will continue to limit its overall rate of expansion.
The aggregate strength of the economy masks significant underlying vulnerabilities that should not be ignored. Delinquency rates on credit cards and auto loans are concerningly high. Simultaneously, small businesses have seen shrinking employment as they struggle with the elevated cost of goods driven by tariffs and labor shortages linked to deportations. The residential real estate sector remains largely paralyzed by a dual stagnation of demand and supply; meanwhile, new construction inventories are beginning to pile up, placing downward pressure on home prices. Consequently, consumer sentiment remains at levels typically observed only
during recessions, highlighting a deep
disconnect between macroeconomic
indicators and the financial reality of many
Americans.”
1 The UCLA Forecast assumes real Gross
Domestic Product (GDP) growth of
approaching 3.0% in 2026, driven by growth
in personal consumption and continued
capital investment, including investment in AI
infrastructure and equipment. Lower GDP
growth is expected in 2027 and 2028 with
increases in the low- to mid- 2% range as the
AI infrastructure buildout begins to taper and
the fiscal landscape becomes more
restrained with spending cuts taking effect,
particularly to Medicaid and SNAP.
1 UCLA Anderson Forecast for the Nation, Spring 2026 Report: From Tariff Hikes to Income Tax Cuts Quarterly Real GDP Growth Forecast
(Seasonally Adjusted Annual Rates)
2 City of Santa Clara
Financial Status Report as of January 31, 2026
In the advance estimate for the fourth quarter of 2025, the Gross Domestic Product (GDP) increased at an annual rate of 1.4%, following a GDP increase of 4.4% in the third quarter. The increase in real GDP primarily reflected increases in consumer spending and investments. These were offset by decreases in exports and government spending. Imports, which are a subtraction in the calculation of GDP, decreased.2
On a national level, the unemployment rate of 4.3% changed little between December 2025 and January 2026. In January, the number of unemployed persons totaled 7.4 million, a slight decrease of approximately 141,000 from December. These measures are higher than a year earlier, when the jobless rate was 4.0 percent, and the number of unemployed people was 6.9 million.3
2 https://www.bea.gov/news/2026/gdp-advance-estimate-4th-quarter-and-year-2025 3 https://www.bls.gov/news.release/pdf/empsit.pdf
3 City of Santa Clara
Financial Status Report as of January 31, 2026
At the state level, the California unemployment rate changed little from 5.6% to 5.5% between November and December 2025. This rate is unchanged from the 5.5% rate in December 2024. Over the past year, California employers have lost 11,200 nonfarm jobs (0.1% decrease).4 The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 4.0% in December 2025, down from a revised 4.3% in November 2025, and unchanged from the December 2024 level of 4.0%. Between December 2024 and December 2025, employment in this region decreased by 1,700 jobs, or 0.1%. The largest decreases were in professional and business services (down 8,600 jobs) and manufacturing (down 3,500 jobs). Notable employment increases were in private education and health services (up 7,100 jobs) and leisure and hospitality (up 1,900 jobs).5
General Fund
The General Fund is the major operating fund for the City and includes multiple programs, services, and activities for the residents and businesses of the City. The adopted budget for operating revenues and expenditures for fiscal year 2025/26 was $353.0 million. The amended budget for revenues and expenditures was adjusted to $383.7 million to reflect carryover encumbrances from fiscal year 2024/25 and various budget amendments approved by the City Council through January 2026.
General Fund revenues are tracking to exceed the budget and expenditures are tracking to end the year with savings.
4 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-december-2025/ 5 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of January 31, 2026
General Fund Revenues
As of January 31, 2026, $178.6 million, or 53% of General Fund revenue (excluding transfers) was received. Collections are tracking below par through January due to the timing of payments. In some cases, such as property tax, most payments are scheduled to occur later in the fiscal year. Transfers and use of reserves of $46.9 million have occurred as budgeted.
Adopted Budget
Amended
Budget
Actual Through
01/31/2026
Percentage
Received
Actual Through
01/31/2025
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 65,850,000$ 65,850,000$ 31,302,099$ 47.54% 28,553,922$ 2,748,177$ 9.62% Property Tax 101,181,000 101,181,000 51,415,636 50.82% 48,696,434 2,719,202 5.58% Transient Occupancy Tax 27,500,000 27,500,000 13,652,053 49.64% 11,640,020 2,012,033 17.29% Other Taxes 7,200,000 7,200,000 2,460,076 34.17% 2,604,025 (143,949) -5.53% Total Taxes 201,731,000 201,731,000 98,829,864 48.99% 91,494,401 7,335,463 8.02%
LICENSES & PERMITS
Business Licenses 6,200,000 6,200,000 4,042,100 65.20% 4,042,863 (763) -0.02% Building Permits - - 953,453 N/A 791,665 161,788 20.44% Fire Operation Permits 1,998,000 1,998,000 1,512,704 75.71% 1,323,470 189,234 14.30% Miscellaneous Permits 26,000 26,000 254 0.98% 11,304 (11,050) -97.75% Total Licenses & Permits 8,224,000 8,224,000 6,508,511 79.14% 6,169,302 339,209 5.50% FINES & PENALTIES 1,557,000 1,557,000 1,944,880 124.91% 1,403,631 541,249 38.56% INTERGOVERNMENTAL 580,000 1,028,764 656,264 63.79% 1,189,353 (533,089) -44.82% CHARGES FOR SERVICES 35,626,474 35,726,474 22,047,366 61.71% 20,216,539 1,830,826 9.06% SILICON VALLEY POWER TRANSFER 37,275,000 37,275,000 21,743,755 58.33% 20,687,975 1,055,780 5.10%
USE OF MONEY & PROPERTY
Interest 6,247,000 6,247,000 4,492,657 71.92% 2,197,241 2,295,416 104.47% Rent 13,107,611 13,536,011 8,595,971 63.50% 7,478,037 1,117,934 14.95% Total Use of Money & Property 19,354,611 19,783,011 13,088,628 66.16% 9,675,278 3,413,350 35.28% MISCELLANEOUS REVENUES 380,000 398,700 567,523 142.34% 356,453 211,070 59.21%
OTHER FINANCING SOURCES
Operating Transfer In - Storm Drain 1,454,000 1,454,000 1,454,000 100.00% 1,454,000 - 0.00% Operating Transfer In - Reserves 9,556,671 16,973,212 16,973,212 100.00% 13,950,549 3,022,663 21.67% Operating Transfer In - Fund Balances(1) 5,816,858 28,044,857 28,044,857 100.00% 6,162,369 21,882,488 355.10% Operating Transfer In - Miscellaneous 405,265 401,746 401,746 100.00% 2,201,534 (1,799,788) -81.75% Total Other Financing Sources 17,232,794 46,873,815 46,873,815 100.00% 23,768,452 23,105,363 97.21%
STADIUM OPERATION
Charges for Services 24,423,380 24,497,380 11,997,086 48.97% 9,587,056 2,410,030 25.14% Rent and Licensing 6,640,308 6,640,308 1,208,634 18.20% 7,504,101 (6,295,467) -83.89% Total Stadium Operation 31,063,688 31,137,688 13,205,720 42.41% 17,091,157 (3,885,437) -22.73% TOTAL GENERAL FUND 353,024,567$ 383,735,452$ 225,466,326$ 58.76% 192,052,542$ 33,413,784$ 17.40% (1) The Operating Transfer In - Fund Balances includes the carryover encumbrances of open purchase orders as of June 30, 2024 and mid year budget amendment from reserves.
Function
CITY OF SANTA CLARA
GENERAL FUND
REVENUE OVERVIEW AND COMPARISON BY TYPE
FISCAL YEAR 2025/26 PY REVENUE COMPARISON
5 City of Santa Clara
Financial Status Report as of January 31, 2026
General Fund Revenues
Sales Tax: The City of Santa Clara sales tax rate is 9.125%, of which the City receives 1.0%. As of January 31, 2026, $31.3 million has been recorded, which is 9.6% higher than prior year collection levels. Given the timing of payments, the sales tax receipts through January account for actual activity in the first quarter (July through September 2025) totaling $18.4 million and advance payments for October and November 2025 totaling $12.5 million. In addition, $0.3 million has been received for the Proposition 172 Public Safety Sales Tax, which is consistent with the prior fiscal year.
In the first quarter of FY 2025/26 (July – September activity) receipts totaled $18.4 million. This collection level was 3.9% below the prior year receipts of $19.2 million for the first quarter of FY 2024/25. This decrease was the result of a 16.0% decrease in the Business-to-Business category. This decline was partially offset by growth in the remaining categories: construction (up 6.7%), food products (up 7.2%), general retail (up 6.2%) and transportation (up 6.5%) categories. The County pool receipts in the first quarter of FY 2025/26 were also up 12.0% over the first quarter of FY 2024/25 based on the City’s strong sales tax performance; these collections represent approximately 20% of the City’s sales tax receipts.
While not reflected in the figures through January, the City has received data for the second quarter of FY 2025/26 (October – December 2025 activity). Collections in that quarter totaled $21.9 million and were 8.6% above the $20.2 million collected in the same quarter last fiscal year. The City does not yet have any information on the drivers of that growth and how much can be attributed to one-time activities. Given the strong performance to date and the strong performance in FY 2024/25, collections are tracking to exceed the budget estimate of $65.9 million. Collections may exceed the budget by approximately $10 million based on preliminary estimates with the limited data available and projections from the City’s sales tax consultant.
Property Tax: Through January, Property tax receipts totaled $51.4 million, up 5.6% from the prior year. The majority of property tax revenue is collected in the second half of the fiscal year. Based on information from the County of Santa Clara, property tax receipts are projected to end the year at $103.6 million, slightly above the Adopted Budget estimate of $101.2 million.
Transient Occupancy Tax (TOT): TOT is calculated as a percentage of City hotel/motel room charges. The City’s TOT rate is 13.5%. Through January 31, 2026, $13.7 million has been collected, which reflects a 17.3% increase when compared to the collection level in the prior year. Beginning July 2025, all hotels submit TOT payments monthly rather than a combination of monthly and quarterly payments, which will impact the collection pattern during this fiscal year. Based on the higher prior year collection level, current year receipts, and the expected impact from the Super Bowl and FIFA World Cup events, TOT revenue is projected to exceed the budgeted estimate by year-end by $3 million - $5 million.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $2.5 million through January, which is slightly below last fiscal year’s collection levels of $2.6 million. Receipts reflect franchise tax ($1.7 million) and documentary transfer tax ($0.8 million).
6 City of Santa Clara
Financial Status Report as of January 31, 2026
Licenses & Permits: Includes business licenses, fire operation permits, and miscellaneous permits and fees. This category also includes a portion of building permits that are allocated for advanced planning. Licenses and permits revenue collections are tracking above par with receipts totaling $6.5 million, or 79.1% of the $8.2 million budget. This collection level is higher than prior year receipts of $6.2 million. Business licenses receipts represent the majority of the collections to date at $4.0 million.
Collections in this category are tracking on par with the prior year level.
Fines & Penalties: Includes collection charges (late fees), vehicle, parking, court fines, and miscellaneous penalty fines. The revenue collected in this category through January was $1.9 million, which is above the budget of $1.6 million and the prior year level collections of $1.4 million. The majority of the receipts are comprised of collection charges. The variance from the prior year is primarily due to higher collection charges.
Intergovernmental: Includes motor vehicle fees, state homeowner property tax relief, state mandated reimbursement and redistribution of land sale proceeds and ground leases from the Successor Agency.
Through January 31, 2026, $0.7 million has been collected in this category, which is 44.8% lower than prior year levels. Collections were higher last year due to wildland reimbursements. Motor vehicle fees total $0.2 million, slightly exceeding the budget, while miscellaneous other agency revenues total $0.4 million, which primarily reflects the SB 90 reimbursements from the State for state-mandated programs delivered by the Police Department. These funds were appropriated to the Police Department as part of the July/August Monthly Financial Report actions that were approved by the City Council on October 21, 2025.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through January, collections totaled approximately $22.0 million or 61.7% of the budget. This reflects a 9.1% increase compared to last year’s collections, primarily due to higher receipts in engineering fees, interdepartmental charges, and planning and zoning fees.
Silicon Valley Power Transfer: In accordance with the City’s charter, Silicon Valley Power (SVP) pays
5.0% of gross revenues to the General Fund. Transfers throughout the year are based on the budgeted estimate and will be trued up at the end of the fiscal year based on actual performance. Based on the prior year collections and activity levels in SVP, receipts in this category are expected to exceed the budgeted estimate.
Use of Money & Property: Includes realized investment income and rental income. Collections of $13.1 million are higher than prior year levels in both categories. The increase in rental income reflects higher right-of-way collections and lease revenues. Interest collections came in nearly 104% higher than prior year levels due to several factors, including an increase in the size of the portfolio, the interest income distribution timing, a higher level of realized losses last fiscal year, and higher earnings for certain securities. Receipts in this category are expected to exceed the budgeted estimate by approximately $3 million based on current collection trends.
7 City of Santa Clara
Financial Status Report as of January 31, 2026
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, and one-time miscellaneous revenues. Through January, collections of $0.6 million exceeded the budget and are
59.2% above the prior year collections of $0.4 million.
Stadium Operation: Through January 31, 2026, $13.2 million has been collected through charges for services and rent. Of this amount, $3.4 million and $3.9 million represents public safety cost reimbursements for non-NFL events and NFL games, respectively. The City also received the ground lease payment of $1.2 million and general and administrative cost reimbursements of $1.1 million, both from the Stadium Authority. Between December and January, the lease payment decreased by $60,000 due to the timing of Senior & Youth Fee recognition. An accrual was recorded in December, with the related revenue recognized in February. Reimbursements of $2.8 million have been received from the Bay Area Host Committee. Remaining collections of $0.8 million reflected parking permits.
8 City of Santa Clara
Financial Status Report as of January 31, 2026
General Fund Expenditures
As of January 31, 2026, $234.3 million or 61.1% of the General Fund operating budget had been expended, which is higher than prior year expenditure levels. Excluding transfers, expenditures totaled $180.7 million, or 54.7% of the budget, which is slightly below par of 58.3%. Transfers of $53.6 million have occurred as budgeted. Overall, expenditures in the General Fund are within budgeted levels through January and are expected to end the year with savings.
Adopted Budget
Amended
Budget
Actual Through
01/31/2026
Percentage
Use d
Actual Through
01/31/2025
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 20,501,477$ 19,788,144$ 9,689,977$ 48.97% 8,911,702$ 778,275$ 8.73% City Council 1,268,362 1,273,274 675,824 53.08% 626,182 49,642 7.93% City Clerk 1,761,474 1,763,949 1,039,904 58.95% 1,048,079 (8,175) -0.78% City Manager 5,859,758 6,942,349 3,394,833 48.90% 2,487,962 906,871 36.45% City Attorney 4,619,355 4,760,193 2,467,608 51.84% 1,699,821 767,787 45.17% City Auditor 1,075,554 1,167,005 458,999 39.33% 437,782 21,217 4.85% Human Resources 5,470,869 5,758,815 2,434,442 42.27% 2,338,018 96,424 4.12% Finance 20,897,522 21,598,708 11,196,739 51.84% 11,677,545 (480,806) -4.12% Total General Government 61,454,371 63,052,437 31,358,326 49.73% 29,227,091 2,131,235 7.29% PUBLIC WORKS 30,216,576 31,460,071 16,555,549 52.62% 14,698,520 1,857,029 12.63% COMMUNITY DEVELOPMENT 6,039,535 6,237,266 3,119,122 50.01% 2,783,343 335,779 12.06% PARKS AND RECREATION 24,548,978 25,373,495 13,737,482 54.14% 12,459,226 1,278,256 10.26%
PUBLIC SAFETY
Fire 70,335,667 70,804,167 41,483,343 58.59% 40,260,646 1,222,697 3.04% Police 99,261,544 100,299,895 59,075,971 58.90% 52,808,481 6,267,490 11.87% Total Public Safety 169,597,211 171,104,062 100,559,314 58.77% 93,069,127 7,490,187 8.05% LIBRARY 12,178,570 12,300,254 6,790,991 55.21% 6,939,745 (148,754) -2.14% DEPARTMENTAL TOTAL 304,035,241 309,527,585 172,120,784 55.61% 159,177,052 12,943,732 8.13%
OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 1,062,675 1,635,973 1,635,973 100.00% 1,742,520 (106,547) -6.11% Operating Transfer Out - Debt Services 1,406,979 1,406,979 1,406,979 100.00% 1,405,940 1,039 0.07% Operating Transfer Out - Maintenance Dtrct 1,079,493 1,079,493 1,079,493 100.00% 977,546 101,947 10.43% Operating Transfer Out - Cemetery 1,078,109 1,078,109 1,078,109 100.00% 823,000 255,109 31.00% Operating Transfer Out - CIP 6,352,233 30,793,808 30,793,808 100.00% 14,436,988 16,356,820 113.30% Operating Transfer Out - Reserves 17,649,996 17,649,996 17,649,996 100.00% 7,324,722 10,325,274 140.96% Total Other Financing Uses 28,629,485 53,644,358 53,644,358 100.00% 26,710,716 26,933,642 100.83% STADIUM OPERATION 20,359,841 20,563,508 8,581,583 41.73% 6,288,928 2,292,655 36.46% TOTAL GENERAL FUND 353,024,567$ 383,735,452$ 234,346,725$ 61.07% 192,176,696$ 42,170,029$ 21.94% Function
CITY OF SANTA CLARA
GENERAL FUND
EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2025/26 PY EXPENDITURES COMPARISON
9 City of Santa Clara
Financial Status Report as of January 31, 2026
General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances by program.
Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. Through January, expenditures totaled $9.7 million, or 49% of the budget, which is below par of 58.3%. Current year spend is tracking higher than prior year levels, primarily in the salaries and benefits and contractual services categories.
City Attorney: Actual expenditures through January totaled approximately $2.5 million, which is 51.8% of the budget, which is below par. Spending is higher than the total expenditures through the same time last fiscal year by 45% due to higher salaries and benefits costs.
City Clerk: Through January, actual expenditures were tracking slightly above budget at approximately $1.0 million or 59% of the budget, primarily in the salaries and benefits categories. This spend is consistent with prior year levels. Staff will continue to monitor the Department spend and bring forward adjustments if necessary.
City Council: Through January, expenditures of $0.7 million were at 53.1% of budget, which is below par. Compared to the same period through last fiscal year, this reflects a 7.9%% increase in expenditures, resulting from higher salary and benefits and conference, training and travel spend. This is partially offset by lower spending for as-needed staff.
City Manager: The actual expenditures through January totaled $3.4 million, or 48.9% of the budget, which is below par for this time of the year. Expenditures are approximately 36.5% higher compared with the spending level during the same period last fiscal year. This is due to higher spend in the salaries and benefits and contractual services categories.
Community Development Department: This department consists of three divisions: Planning, Building, and Housing and Community Services. The Building Division of this department is reflected in the Building Development Services Fund, which falls under the special revenue section of this report.
Through January, departmental expenditures for the Planning and Housing and Community Services divisions totaled $3.1 million, or 50% of the budget, which is below par of 58.3%. This expenditure level is 12.1% above the prior year as a result of higher salaries and benefits and contractual services spend.
Finance Department: Through January, the Department’s expenditures totaled $11.2 million, or 51.8% of the budget, which is below par. This expenditure level was approximately 4.1% lower compared to the same period last year. Higher salaries and benefits expenditures are offset by lower contractual services costs.
Fire Department: Through January, actual expenditures totaled $41.5 million, or 58.6% of the budget, which is at par. These expenditures are 3% above the spending level through the same period last fiscal year. Overtime expenditures are tracking at 137.1% of the budget, which is well above par for this time of year. Excluding reimbursable mutual aid-related overtime, the departmental overtime remains at
10 City of Santa Clara
Financial Status Report as of January 31, 2026
approximately 130.3% of the budget. While this overtime figure is above par, it is important to note that overtime is used to backfill for vacant positions and the vacancy savings offset a portion of the overtime costs.
Through January, absences are up 14% (from 48,062 to 54,762 hours) when compared with the prior fiscal year and remain above historical levels. Absences are trending high in the areas of Family and Medical Leave Act (FMLA) leave, sick leave, disability leave, and industrial injury time. Employees can elect compensatory time over overtime pay when backfilling shift absences, which increases the need to backfill when the compensatory time is used. Through January, the compensatory time payouts total $1,415,083, which is above historical levels and 37% above the payouts of $1,032,884 experienced through January of last fiscal year. The Department will continue to monitor expenditures throughout the fiscal year, and any necessary budget adjustments will be brought forward for City Council consideration.
Library Department: Through January, actual expenditures totaled approximately $6.8 million, or
55.2% of the budget, which is slightly below par and the prior year expenditure level.
Parks and Recreation Department: Through January, actual expenditures totaled $13.7 million, or
54.1% of the budget, which is below par, but 10.3% higher than prior year actuals of $12.5 million. This increase reflects higher spend in the salaries and benefits categories as well as operating supplies and contractual services costs.
Police Department: Expenditures through January are tracking at $59.1 million, or 58.9% of the budget; this is approximately 11.8% higher than prior year spending levels. The increase is mainly due to higher spend in the salaries and benefits and capital outlay categories. The Department will continue to monitor expenditures throughout the fiscal year and any necessary budget amendments will be brought forward for City Council consideration.
Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures of $8.6 million through January are tracking at 41.7% of the budget; this expenditure level is 36.5% above the prior fiscal year due planning activities related to the Super Bowl LX and FIFA World Cup 2026. Events at the Stadium through January include two soccer matches, four concerts, two preseason and eight regular season NFL games; these costs are fully reimbursed by the Stadium Manager and the Stadium Authority. The Bay Area Host Committee also provides reimbursement for expenses incurred related to Super Bowl LX and FIFA World Cup 2026 planning costs.
11 City of Santa Clara
Financial Status Report as of January 31, 2026
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of January 31, 2026. The amended budget reflects carryover encumbrances from fiscal year 2024/25 and budget amendments approved by the City Council through January 2026.
Through the end of January, revenues totaled $18.3 million, or 61.4% of the estimate, which is above par of 58.3%, while expenditures totaled approximately $15.2 million, or 39%. Revenues in both the Building and Fire Development Services Funds and the Fire CUPA Fund are tracking above par. The Housing Authority Fund is tracking significantly above prior year levels due to additional interest paid on a housing loan, while revenue in the City Affordable Housing Fund is tracking below prior year levels.
This is a result of a correction in booking for interest accrued on housing impact fees, which is now recorded in the City Affordable Housing Capital Fund. Expenditures are tracking higher in this fund when compared to prior years due to higher salaries and benefits and contractual services spend. In the Housing Successor Agency Fund, contractual services spend is higher than prior years, while interest collections on housing loans have come in lower than prior years.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 1/31/2026 Received 1/31/2025 Prior Year Change Building Development Services Fee
Fund
16,736,000$ 16,736,000$ 12,196,775$ 72.88% 10,176,321$ 2,020,454$ 19.85% City Affordable Housing Fund 1,253,326 502,171 311,116 61.95% 488,611 (177,495) -36.33% Fire CUPA Fund 2,019,000 2,019,000 1,473,475 72.98% 17,800 1,455,675 8177.95% Fire Development Services Fee
Fund
3,429,000 3,429,000 2,694,293 78.57% 2,564,177 130,116 5.07% Housing and Urban Development 5,427,794 5,561,800 987,764 17.76% 573,706 414,058 72.17% Housing Authority Fund 281,088 281,088 367,729 130.82% 32,251 335,478 1040.21% Housing Successor Fund 1,302,573 1,302,573 296,242 22.74% 466,358 (170,116) -36.48% TOTAL 30,448,781$ 29,831,632$ 18,327,394$ 61.44% 14,319,224$ 4,008,170$ 27.99% Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 1/31/2026 Use d 1/31/2025 Prior Year Change Building Development Services Fee
Fund
17,307,319$ 18,457,334$ 9,574,030$ 51.87% 8,975,451$ 598,579$ 6.67% City Affordable Housing Fund 6,984,995 7,292,572 707,612 9.70% 510,037 197,575 38.74% Fire CUPA Fund 1,779,867 1,783,637 832,067 46.65% 0 832,067 N/A Fire Development Services Fee
Fund
3,904,315 3,926,714 2,014,823 51.31% 2,078,975 (64,152) -3.09% Housing and Urban Development 5,427,794 5,720,995 1,489,129 26.03% 1,529,961 (40,832) -2.67% Housing Authority Fund 459,878 501,371 104,332 20.81% 98,974 5,358 5.41% Housing Successor Fund 1,127,973 1,347,976 512,886 38.05% 382,821 130,065 33.98% TOTAL 36,992,141$ 39,030,599$ 15,234,879$ 39.03% 13,576,219$ 1,658,660$ 12.22%
PRIOR YEAR EXPENDITURE COMPARISON
CITY OF SANTA CLARA
SPECIAL REVENUE FUNDS
REVENUE AND EXPENDITURES - OVERVIEW AND COMPARISON BY FUND REVENUE - FISCAL YEAR 2025/26 PRIOR YEAR REVENUE COMPARISON EXPENDITURES - FISCAL YEAR 2025/26
12 City of Santa Clara
Financial Status Report as of January 31, 2026
Internal Service Funds
The table below displays the expenditures in the internal service funds across the City. The amended budget reflects current year appropriations, prior year carryover, and budget amendments approved through January 2026. As of January 31, 2026, the internal service fund expenditures totaled $27.4 million, or 40.5% of the amended budget. The expenditure fluctuations in the Vehicle Replacement Fund are due to the timing of vehicle purchases throughout the year. The significant decrease in spend in the Communication Acquisitions Fund is a result of the replacement of public safety radios that occurred last fiscal year. In the Information Technology Services Fund is attributable to higher spend in the contractual services category.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 1/31/2026 Use d 1/31/2025 Prior Year Change Communication Acquisitions Fund 1,064,336$ 1,642,638$ 473,203$ 28.81% 5,920,301$ (5,447,098)$ -92.01% Fleet Maintenance and Operations
Fund
6,757,227 7,417,317 3,736,824 50.38% 3,458,939 277,885 8.03% Information Technology Services
Fund
18,755,875 23,478,149 9,022,916 38.43% 6,767,297 2,255,619 33.33% Public Works Capital Projects
Management Fund
4,991,087 5,863,020 2,775,945 47.35% 2,363,305 412,640 17.46% Special Liability Fund 9,152,000 9,209,062 5,167,813 56.12% 4,675,751 492,062 10.52% Unemployment Insurance Fund 100,000 100,000 83,608 83.61% 55,682 27,926 50.15% Vehicle Replacement Fund 3,994,000 11,017,019 1,080,431 9.81% 2,020,419 (939,988) -46.52% Workers' Compensation Fund 6,858,000 8,858,000 5,016,919 56.64% 4,024,388 992,531 24.66% TOTAL 51,672,525$ 67,585,205$ 27,357,659$ 40.48% 29,286,082$ (1,928,423)$ -6.58%
CITY OF SANTA CLARA
INTERNAL SERVICE FUNDS
EXPENDITURES - OVERVIEW AND COMPARISON BY FUND
EXPENDITURES - FISCAL YEAR 2025/26 PRIOR YEAR EXPENDITURE COMPARISON
13 City of Santa Clara
Financial Status Report as of January 31, 2026
Governmental Capital Improvement Funds
The table below lists the revenue for selected capital improvement funds. The amended budget reflects current year appropriations, prior year carryover, and budget amendments approved through January 2026. As of January 31, 2026, the capital fund revenue totaled approximately $22.4 million. In the Parks and Recreation Capital Fund, $13.3 million represents MFA collections, $0.9 million represents Quimby Act fees received, with interest earnings accounting for the remaining collections. The revenue collected in the Related Santa Clara Fund represents developer contributions. The revenue shown in the Storm Drain Capital Fund is customer service charges. In the Tasman East Specific Infrastructure Fund, $2.0 million reflects impact fee collections, with interest earnings as the remaining collections.
The collections in the Streets and Highways Capital Fund are comprised of interest earnings, grant funding, fees, and VTA Measure B proceeds.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 1/31/2026 Use d City Affordable Housing Capital Fund 211,155$ -$ 211,155$ 211,155$ 100.00% Parks & Recreation 10,197,016 - 10,197,016 15,491,566 151.92% Public Buildings 110,027 - 110,027 110,028 100.00% Related Santa Clara Developer 932,667 290,000 1,222,667 235,000 19.22% Storm Drain 1,623,993 2,984,107 4,608,100 918,079 19.92% Streets & Highways 15,652,769 19,942,011 35,594,780 3,274,619 9.20% Tasman East Specific Infrastructure
Improvement Fund
217,682 3,517,250 3,734,932 2,112,429 56.56% TOTAL 28,945,309$ 26,733,368$ 55,678,677$ 22,352,876$ 40.15%
CITY OF SANTA CLARA
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
REVENUE - FISCAL YEAR 2025/26
The table below lists the total amended budgeted amounts for expenditures in the Capital Improvement Funds. Similar to the revenue table, the amended expenditure budgets consist of current year appropriations, prior year carryover encumbrance balances in Governmental Capital Improvement Funds, and budget amendments approved through January 2026. As of January 31, 2026, capital fund expenditures totaled $29.9 million, or 12.7% of the amended budget.
As part of the adoption of the FY 2025/26 and FY 2026/27 biennial operating budget, capital funds were carried over for projects that were not anticipated to be completed by June 30, 2025. Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year- End Report for FY 2024/25, which was approved by the City Council in December 2025.
14 City of Santa Clara
Financial Status Report as of January 31, 2026
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 1/31/2026 Use d City Affordable Housing Capital Fund 4,944,484$ -$ 4,944,484$ -$ 0.00% Fire 500,866 1,854,028 2,354,894 815,579 34.63% General Gov't - Other 4,437,516 12,674,976 17,112,492 695,403 4.06% Library 24,642 653,161 677,803 12,719 1.88% Parks & Recreation 5,717,816 40,887,990 46,605,806 2,131,206 4.57% Public Buildings 43,412,209 9,327,180 52,739,389 3,663,306 6.95% Related Santa Clara Developer 723,037 343,370 1,066,407 297,409 27.89% Storm Drain 911,490 8,707,187 9,618,677 691,748 7.19% Streets & Highways 20,063,576 76,260,521 96,324,097 20,163,874 20.93% Tasman East Specific Infrastructure
Improvement Fund
1,434,465 2,828,615 4,263,080 1,439,244 33.76% TOTAL 82,170,101$ 153,537,028$ 235,707,129$ 29,910,488$ 12.69% EXPENDITURES - FISCAL YEAR 2025/26
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
15 City of Santa Clara
Financial Status Report as of January 31, 2026
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of January 31, 2026. Overall, revenues and expenditures are tracking below budgeted levels. Compared to prior year levels, revenues are tracking lower, whereas expenditures are tracking higher.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 1/31/2026 received 1/31/2025 Prior Year Change Cemetery Fund 600,000$ 600,000$ 385,229$ 64.20% 370,775$ 14,454$ 3.90% Electric Utility Fund 1,128,195,241 1,128,195,241 479,290,075 42.48% 556,078,817 (76,788,742) -13.81% Sewer Utility Fund 52,407,375 52,407,375 32,577,995 62.16% 34,057,191 (1,479,196) -4.34% Solid Waste Utility Fund 42,287,613 42,287,613 23,060,325 54.53% 21,842,753 1,217,572 5.57% Water Recycling Fund 9,651,409 9,651,409 5,305,349 54.97% 6,606,658 (1,301,309) -19.70% Water Utility Fund 76,402,644 76,402,644 40,030,238 52.39% 37,530,246 2,499,992 6.66% TOTAL REVENUE 1,309,544,282$ 1,309,544,282$ 580,649,211$ 44.34% 656,486,440$ (75,837,229)$ -11.55% Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 1/31/2026 Use d 1/31/2025 Prior Year Change Cemetery Fund 1,757,102$ 1,774,177$ 645,326$ 36.37% 665,862$ (20,536)$ -3.08% Electric Utility Fund 712,617,141 723,672,626 385,955,520 53.33% 323,319,870 62,635,650 19.37% Sewer Utility Fund 43,738,253 44,110,349 30,312,442 68.72% 21,714,503 8,597,939 39.60% Solid Waste Utility Fund 42,061,065 46,374,375 21,144,073 45.59% 21,643,221 (499,148) -2.31% Water Recycling Fund 10,890,055 14,745,574 5,815,989 39.44% 5,226,171 589,818 11.29% Water Utility Fund 66,793,248 68,017,282 35,092,882 51.59% 33,706,437 1,386,445 4.11% TOTAL - Operating
Appropriations
877,856,864$ 898,694,383$ 478,966,232$ 53.30% 406,276,064$ 72,690,168$ 17.89% PRIOR YEAR EXPENSE COMPARISONEXPENDITURES - FISCAL YEAR 2025/26
CITY OF SANTA CLARA
ENTERPRISE OPERATING FUNDS
REVENUE AND EXPENSES - OVERVIEW AND COMPARISON BY FUND
REVENUE - FISCAL YEAR 2025/26 PRIOR YEAR REVENUE COMPARISON
Revenues in the electric (which also includes the Electric Debt Service Fund), water, sewer (which also includes the Sewer Debt Service Fund) and water recycling funds are primarily from customer service charges. The activity levels for these customer service charges also impact the resource and production costs on the expenditure side for these funds. In the Electric Utility Fund, the significant decrease in revenue is attributable to bond proceeds received last fiscal year. Revenue in the Water Recycling Fund is lower than prior year levels due to a reimbursement received last fiscal year.
Expenditures in the Sewer Utility Fund are tracking higher than prior year levels due to the timing of quarterly operations and maintenance payments made for the Regional Wastewater Facility; the third quarter was not recorded until February last fiscal year.
16 City of Santa Clara
Financial Status Report as of January 31, 2026
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the tables below. Actual revenue through January 31, 2026, totaled $8.5 million, consisting primarily of developer contributions in the Electric Utility Fund and sewer fees in the Sewer Utility Fund. Enterprise capital fund expenses totaled $64.3 million, or 7.5% of the amended budget. Similar to the general government capital funds, capital funds were carried over from FY 2024/25 as part of the FY 2025/26 and FY 2026/27 budget adoption process for those projects that were not expected to be completed by June 30, 2025. Additional necessary adjustments to the capital carryover amounts based on actual year-end expenditures were included in the Budgetary Year-End Report for FY 2024/25, which was approved by the City Council in December 2025. These actions are reflected in the table below.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 1/31/2026 Use d Electric Utility Fund 27,041,043$ 13,091,676$ 40,132,719$ 2,405,922$ 5.99% Sewer Utility Fund - - - 6,008,312 N/A Solid Waste Utility Fund 260,653 243,847 504,500 4,088 0.81% Street Lighting (1) - - - 11,695 N/A Water Utility Fund - - - 39,760 N/A TOTAL - Revenue 27,301,696$ 13,335,523$ 40,637,219$ 8,469,777$ 20.84% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 1/31/2026 Use d Cemetery Fund 10$ 270,479$ 270,489$ -$ 0.00% Convention Center Capital
Fund
1,590,412 2,556,629 4,147,041 - 0.00% Electric Utility Fund 351,921,281 378,643,486 730,564,767 49,285,817 6.75% Sewer Utility Fund 47,606,403 37,208,230 84,814,633 6,054,063 7.14% Solid Waste Utility Fund 821,876 141,354 963,230 507,674 52.71% Street Lighting (1) 5,837,301 12,872,569 18,709,870 5,015,851 26.81% Water Recycling Fund (338,786) 388,786 50,000 1,486 2.97% Water Utility Fund 15,033,219 6,891,151 21,924,370 3,400,108 15.51%
TOTAL - CIP
Appropriations
422,471,716$ 438,972,684$ 861,444,400$ 64,264,999$ 7.46%
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
SUMMARY OF EXPENDITURES
EXPENSES - FISCAL YEAR 2025/26
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
REVENUE - FISCAL YEAR 2025/26
(1) Street Lighting fund is part of Electric Capital Improvement Funds
17 City of Santa Clara
Financial Status Report as of January 31, 2026
Fund Reserves
By policy, City Council established the City’s General Contingency Reserve, under which reserves for Budget Stabilization and Capital Projects were established. • Budget Stabilization Reserve is set aside for weathering economic downturns, emergency financial crisis, or disaster situations. The reserve target is equal to the expenditures of the City’s General Fund operations for three months (90-day or 25% General Fund Adopted Operating Budget).
• Capital Projects Reserve earmarks funds for the Capital Improvement Program.
Other General Reserves and Enterprise Fund Reserves included in this report are highlighted as follows:
• Technology Fee Reserve is set aside to update and/or replace the City’s aging technology and to ensure internal controls are in compliance with current business standards and legal requirements.
• Land Sale Reserve is net proceeds from the sale of City-owned land, with interest earned on these funds available to be appropriated for General Fund operating expenditures. This reserve is available for appropriation by City Council action.
• The Electric Utility Rate Stabilization Reserve and Operations and Maintenance Reserve ensure sufficient operating cash is available to cover day-to-day expenses, address unforeseen cost increases or revenue shortfalls, and ensure debt service coverage. • The Replacement and Improvement Reserve in the Water and Sewer Utility Funds is for future capital improvement.
The table below summarizes select reserve balances.
18 City of Santa Clara
Financial Status Report as of January 31, 2026
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 81,450,116$
Capital Projects Reserve 21,383,432
Land Sale Reserve 18,561,159
Technology Fee Reserve 2,827,685
Electric Rate Stabilization Fund Reserve 78,000,000$
Electric Operations and Maintenance Reserve 377,000,000 Replacement & Improvement 303,090$
TOTALS 124,222,392$ 455,000,000$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
January 31, 2026
Donations to the City of Santa Clara
Donations received by department during the month of January 2026 and for fiscal year 2025/26 are shown in the table below.
Department Jan-26
Fis cal Year
2025/26
Year To Date Designated Use
City Manager's Office 50 150 Help Your Neighbor Parks & Recreation 2,170 24,170 Case Management Parks & Recreation 52 2,699 Roberta Jones Jr. Theatre Parks & Recreation 7,550 19,675 Wade Brummal TOTALS 9,822$ 46,694$