REPORT TO COUNCIL
SUBJECT
Title
Action on FY 2020/21 Budget Year-End Report and Approve the Related Budget Amendments
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
EXECUTIVE SUMMARY
To close out each fiscal year, a Budget Year-End Report is prepared that reconciles funds based on actual year-end performance and brings forward associated budget adjustments. This report includes changes to fund balances assumed in the development of the FY 2021/22 budget, other adjustments to account for needed changes resulting from actual year-end performance, and recommendations to allocate any additional fund balance above the amounts assumed in the budget or balancing actions if those fund balances drop below the levels assumed in the budget.
This report provides the year-end financial condition of the City of Santa Clara on a budgetary basis for the fiscal year ended June 30, 2021 and a summary of year-end performance for the General Fund, Special Revenue Funds, Enterprise Funds, Internal Service Funds, Debt Service Funds, and Capital Funds. The report includes the recommended approval of a limited number of FY 2020/21 budget amendments to address expenditure overages at year-end and FY 2021/22 budget amendments necessary based on the final FY 2020/21 results and to allocate the modest General Fund fund balance of $3.3 million. Budget actions in the new American Rescue Plan Act Fund are also included to account for the federal stimulus funds that were budgeted in the General Fund in FY 2021/22.
In FY 2020/21, the City's revenue collections continued to be impacted by COVID-19, with the largest impact to the Transient Occupancy Tax (TOT) revenue category. The City's operations were also significantly impacted as various front-line services, such as library hours and recreation activities and events, were limited due to COVID-19 related restrictions, resulting in lower expenditures. Given these impacts, necessary budget rebalancing actions were a...
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