FY 2022/23 Budgetary Year-End Financial Report,
Annual Comprehensive Financial Report and other
Year-end Financial Reporting
Tim Kirby, Director of Finance
FY 2022/23 Budgetary
Year End Report
• Budgetary Year-End
Report
• Budgetary Basis,
looking at current
resources
• Cash flow – Cash
available for spending
• Accounting Basis –
Recorded when revenues
earned and expenditures
incurred, regardless of
when cash is received or
paid
Major General Fund Revenues
* Excludes Excess ERAF Payment of $10.9 M
**Other Revenue = interfund, transfers, fines and penalties, interest, grants, intergovernmental, etc.; excludes Sale of Property
***May not total exactly due to rounding
Major Revenue Category Budget Actuals Variance
Property Tax* $ 107.2 M $ 109.1 M 1.9%
Sales Tax 34.9 38.4 9.9%
Other Taxes 8.0 7.3 (8.7%)
Transient Occupancy Tax 14.3 17.0 20.1%
Service Fees 7.3 7.1 (2.4%)
Utility Users Tax & Franchise Fees 16.8 18.1 7.4%
Rents & Concessions 4.8 6.2 27.5%
Other Revenue** 29.6 30.0 0.6%
Total Revenue*** $ 222.9 M $ 233.9 M 4.7%
Net Revenue $ 10.4 M 4.7%
FY 2022/23 General Fund Expenditures and Transfers Out
Final Budget vs. Actuall Fund Expenditures
Description
Final
Budget *
Actual
Expenditures
Variance to
Final Budget
Favorable
(Unfavorable)
Percent
Variance
Equipment 661,253$ 260,603$ 400,650$ 60.6 % Operations 160,476,932 155,687,118 4,789,814 3.0 % Projects 55,407,807 17,809,414 37,598,393 67.9 % Debt Service/Lease Payments 5,082,425 5,346,083 (263,658) (5.2)% Transfers 61,821,176 61,872,771 (51,595) (0.1)% Total Expenditures 283,449,593 240,975,989 42,473,604 15.0 % Equipment Carryover - 328,055 (328,055) Project Carryover - 21,668,168 (21,668,168) Budget Modification No. 8
Special & Outside Group Funding Projects
Carryover - 11,200,847 (11,200,847) Total Carryovers - 33,197,070 (33,197,070) - - -
Grand Total 283,449,593 274,173,059 9,276,534 3.3 % * Final Budget includes budget modifications that occurred after adoption of the FY 2023/24 Budget
Net General Fund Position
Higher than Estimated Revenue* $14,150,597
Lower than Estimated Expenditures $9,276,534
Less: ERAF ($3,791,109)
Net Available FY2020/21 Fund Balance
For Re-appropriation $19,636,022
Budget Modification No. 8 – Clean up items
General Fund Clean-up
• $411,376 to Project 836140 – Stormwater Outfall Emergency Repair
• $308,532 in anticipated FEMA reimbursement
• $102,844 in City funds to match
• Final reimbursement still subject to FEMA audit
• $137,760 in revenue from Opioid Settlement Funds and the corresponding expenditures – no net impact on General Fund Budget Modification No. 8 – Service Delivery
Items
Reallocation of General Fund Savings
• $1,851,977 in savings from completed DPS Recruitment Project 834130 to DPS Recruitment Project 834150 to fund three
additional recruits
• $23,400 – Project 835260 for Tasman Dr. Temporary Lane Closure • $15,000 for Wordly translation software for public meetings • $686,000 for retention of surveillance camera footage at the new City Hall and the additional equipment needed to convert all conference rooms in the new City Hall to accommodate hybrid meetings and council chamber A/V support
• $175,419 for a new analyst in Human Resources to help meet recruitment service levels
Budget Modification No. 8 – ERP Stabilization
Reallocation of General Fund Savings – $3,472,187 to
Enterprise Resource Planning System Stabilization
• $540,000 to provide consultant support after an RFP process for configuration refinements and quarterly testing automation • $122,000 for mid-term support with the current implementation vendor
• $275,000 to implement the Performance Management Module for Human Resources
• $2,535,187 for five term limited staff to support stabilization over a 27-month period
Budget Modification No. 8 – Pension Liabilities
Reallocation of General Fund Savings – $9,116,998 to pay down future pension liabilities
• Two payments to CalPERS to be applied to specific amortized losses from prior years
• $2,661,368 to the Miscellaneous Plan (52% General Fund) • $2,664,521 to the Safety Plan (100% General Fund)
• Excess ERAF - $3,791,109 to City controlled Pension Trust Budget Modification No. 8 – Other Funds
Appropriations affecting other funding sources
• $7,350,000 in Housing Mitigation Funds appropriated as clean up item for Purchase of 295 S. Mathilda property
• $430,000 in savings from Sunnyvale Cleanwater projects appropriated to Project 835500 – Cleanwater Program Reserve to offset future needs.
• $1,252,589 in pension contributions across nine other funds Budget Modification No. 8 – Contribution to BSF
Remaining $7,983,306 to Budget Stabilization Fund
• Staff is mid-process in preparing the FY 2024/25 Recommended Budget
• Significant requests from all departments being received currently to address increasing demands for services across the board
• Anticipated significant increase in fleet funding to comply with the California Air Resources Board Advanced Clean Fleets Regulation, including significant unfunded charging infrastructure needs
Annual
Comprehensive
Financial Report
• Independently audited by
Maze and Associates
• Prepared based on the format
prescribed by the
Governmental Accounting
Standard Board (GASB)
• Received an unmodified
(“clean”) opinion which is the
ideal result from the
independent audit
• Management’s Discussion &
Analysis (MD&A) provides a
narrative introduction,
overview and analysis of the
basic financial statements
• Prior Year ACFR received the
Certificate of Achievement for
Excellence in Financial
Reporting
Other Items
• FY 2022/23 Sunnyvale Financing
Authority Financial Report
• Agreed Upon Procedure (AUP)
Reports (FY 2022/23):
• Sunnyvale Investment
Reconciliations
• General checking account
reconciliation
• Utility fee cash receipts
Grace Zheng, Partner
Maze and Associates
City Council
Recommendation
• Receive and File the FY 2022/23 Budgetary Year-End Financial Report, Annual Comprehensive Financial Report (ACFR), the Sunnyvale Financing Authority Financial Report, Agreed Upon Procedure Reports, and the Report to the City Council Issued by the Independent Auditors and Approve Budget Modification No. 8 in the Amount of $32,787,289
Sunnyvale Financing Authority
• Receive and file the FY 2022/23 Sunnyvale Financing Authority Financial Report