REPORT TO COUNCIL
SUBJECT
Title
Action on Monthly Financial Status and Investment Reports for November 2019 and Approve the Related Budget Amendments [Council Pillar: Enhance Community Engagement and Transparency]
Report
BACKGROUND
In compliance with the Charter of the City of Santa Clara and the adopted Investment Policy, the following reports for November 2019 are submitted for your information. The financial review as of November 30, 2019 provides a year-to-date financial update to the City Council for the current fiscal year. Analysis of the revenues collected and all expenditures through November 30, 2019 measures the level of adherence to the established resource allocation plan and allows the City to monitor and project revenues and expenditures throughout the year.
The Adopted Budget incorporates the estimated revenues and planned expenditures for all funds. The attached Financial Status Report provides the budget to actual revenue and expenditure summaries for the General Fund, Special Revenue Funds and Enterprise Operating Funds, as well as expenditure summary for Capital Improvement Funds and Fund Reserve Balances. Any significant variances are explained in the report.
In accordance with City Council Policy 051 - Donations to the City, a summary of monthly activity and annual donations received by department is included in this report. Although the requirement of the policy is to report quarterly, in its ongoing effort to streamline reporting, the City will include this information monthly in the financial status report.
DISCUSSION
Monthly Financial Status Report (Attachment 1)
The attached report summarizes the City’s financial performances as of November 30, 2019. Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds.
With five months or 41.7% of the fiscal year complete, General Fund revenues are trending below budget at 34.0%, largely due to the change in budgeting methodology, moving the City from a cash basis to a modified accrual basis. General Fund departmental expenditures are at 38.8% of budget which is within budgeted expectations. Total revenues for Enterprise Funds (Electric, Water, Sewer, Cemetery, Solid Waste, and Water Recycling) are at 32.6% while total expenses are at 36.1%.
In the month of November, the City received $12,075 in donations increasing the amount for the fiscal year to $120,459.
Monthly Investment Report (Attachment 2)
All securities held by the City of Santa Clara as of November 30, 2019 were in compliance with the City’s Investment Policy Statement regarding current market strategy and long-term goals and objectives. All securities held are rated “A” or higher by two nationally recognized rating agencies. There is adequate cash flow and maturity of investments to meet the City’s needs for the next six months.
The City’s investment strategy for November 2019 was to invest funds not required to meet current obligations, in securities listed in the prevailing Investment Policy Statement, with maturities not to exceed five years form the date of purchase. This strategy ensures safety of the City’s funds, provides liquidity to meet the City’s cash needs, and earns a reasonable portfolio return of 2.00%.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(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
Approval of the FY 2019/20 Budget Amendments included in Attachment 3 is recommended in this report. From time to time, adjustments to the FY 2019/20 Adopted Budget are required to correct for budgets based on actual tracking, more appropriately align budgets with actual charges and correct for inadvertent errors. The actions recommended in the budget amendments adjust the Community Development contractual services budget to account for a higher level of activity, correct budget allocations, and align expenditures to the correct fund and appropriation. There are also adjustments to several capital improvement program funds as a result of fund balance reconciliations.
|
Net Budget Change - FY 2019/20 Budget Amendments |
|
Fund |
Source of Funds |
Use of Funds |
|
General Fund |
$0 |
$0 |
|
Deposits Fund |
$0 |
$0 |
|
Parks and Recreation Operating Grant Trust Fund |
$9,250 |
$9,250 |
|
Streets and Highways Capital Fund |
($134,528) |
($134,528) |
|
Street Lighting Capital Fund |
($316) |
($316) |
|
Storm Drain Capital Fund |
($70,000) |
($70,000) |
|
General Government Capital Fund |
($50,317) |
($50,317) |
|
Electric Utility Capital Fund |
($148,373) |
($148,373) |
|
Water Utility Capital Fund |
$0 |
$0 |
|
Sewer Utility Capital Fund |
$128,708 |
$128,708 |
|
Solid Waste Capital Fund |
$0 |
$0 |
|
|
|
|
|
Total Net Budget Change |
($265,576) |
($265,576) |
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council 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 clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Note and file the Monthly Financial Status and Investment Reports for November 2019 as presented and Approve Related Budget Amendments.
Staff
Reviewed by: Kenn Lee, Director of Finance
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Monthly Financial Status Report November 2019
2. Monthly Investment Report November 2019
2. FY 2019/20 Budget Amendments