REPORT TO COUNCIL
SUBJECT
Title
Action on Monthly Financial Status and Investment Reports for February 2021 and Approve Related Budget Amendments
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
In compliance with the Charter of the City of Santa Clara and the adopted Investment Policy, the February 2021 Monthly Financial Report and Investment Report are submitted for your information.
In accordance with City Council Policy 051 - Donations to the City, included in this report is a monthly activity and annual summary of donations received by department. 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 performance as of February 28, 2021. Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Program Funds.
Attachment 1 shows that General Fund revenues were trending below the budget at 58.3% through February 2021. Excluding transfers that occur at the beginning of the year, this figure drops to 50.2% of the General Fund revenues received through February. Some revenue categories are lower due to the timing of payments (e.g., property tax), but several categories are tracking below as a result of COVID-19 impacts. Based on current trends, revenue is expected to end the year below budget by $25+ million due to these COVID-19 impacts, with the largest impact to the Transient Occupancy Tax category. On March 9, 2021, the City Council approved budget actions that reduced the FY 2020/21 revenue estimates by $17.3 million, addressing the majority of the lower anticipated collections. Additional revenue adjustments may be brought forward at year end. These adjustments are expected to be offset...
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