REPORT TO COUNCIL
SUBJECT
Title
Action on FY 2019/20 Budget Year-End Report, Approve the Related Budget Amendments, and Approve a Position Reallocation in the City Attorney's Office [Council Pillar: Enhance Community Engagement and Transparency]
Report
EXECUTIVE SUMMARY
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, 2020 and a summary of year-end performance for the General Fund, Special Revenue Funds, Internal Service Funds, and Enterprise Funds. The report also includes the recommended approval of a limited number of FY 2019/20 budget amendments to address expenditures overages, due in part to COVID-19, and FY 2020/21 budget amendments necessary based on the final FY 2019/20 results.
Over the past three years, the current Administration has practiced strong fiscal management toward resolving a $116 million projected deficit and building up City reserves. While FY2019/20 was tracking as expected by way of revenues and expenditures through March 2020, the last few months of FY 2019/20 were significantly impacted by COVID-19, that resulted in a rapid and unprecedented decline in economic activity throughout this region and the nation.
COVID-19 primarily impacted selected revenues in the General Fund, such as transient occupancy tax and sales tax. Actual General Fund revenues fell below the budgeted estimate in FY 2019/20 by $10.9 million. Immediate expenditure controls, put in place by end of March 2020, amounted to savings of $14.8 million and serve to mitigate the majority of the lower revenue. However, the portion of the expenditure savings associated with the development fee program, along with the excess development fee-related revenues, totaling $5.1 million are set aside in the development fee reserves for this purpose.
In April 2020, the impacts from COVID-19 were estimated at $10 million. Overall, through strong fiscal management, the City ended the year...
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