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August 29, 2024 - Monthly Treasurer’s Report for July 2024 1 CITY COUNCIL INFORMATIONAL MEMORANDUM Date: August 29, 2024 To: Cupertino City Council From: Jonathan Orozco, Finance Manager Re: Receive the Monthly Treasurer's Report for July 2024 Background California Government Code Section 41004 states: Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances. The city treasurer shall file a copy with the legislative body. The City's Municipal Code Section 2.24.030 Monthly Reports states: The Treasurer shall make monthly reports which conform to the requirements of Government Code Section 41004. Said reports shall be delivered to the City Council, the City Manager and made available for review by such other persons who may so request. The Treasurer's Report (report and accounting of all receipts, disbursements, and fund balances) is made available to City Council in compliance with the aforementioned requirements. 2 Cash vs. Accrual Basis Accounting Cash basis accounting and accrual basis accounting differ in the way revenues and expenses are recognized and recorded, primarily with regard to their timing. Under cash basis accounting, revenues are recorded when payment is received, and expenses are recorded when payment is made. This method of accounting recognizes transactions only when cash changes hands. In contrast, accrual basis accounting recognizes revenues when they are earned (but not necessarily received) and expenses when they are incurred (but not necessarily paid). This method of accounting recognizes transactions as they occur, regardless of whether cash has been exchanged. Receipts, disbursements, and cash balance are measured on a cash basis. The cash balance shows the total cash and investments in the City's accounts. The ending balance is the beginning balance plus receipts minus disbursements. Journal adjustments generally include transactions recorded in other systems and imported into New World, Council- approved budget adjustments, quarterly Cost Allocation Plan (CAP) charges, and quarterly interest earnings. Revenues, expenditures, and fund balance are measured on an accrual basis. As a result, the amount in fund balance does not mean the City has that much cash on hand. Instead, fund balance is the difference between assets and liabilities. The ending balance is the beginning balance plus revenues minus expenditures. Treasurer's Report The report provides an update on the City's cash and fund balances for July 2024. The report is as of August 19, 2024. Receipts, Disbursements, and Cash Balance The City's General Fund ending cash and investment balance was $167.1 million, decreasing by $3.0 million from the prior month. Receipts were $5.4 million, disbursements were $(8.4) million, and journal adjustments were $(102,126) for the month. The City's total ending cash and investment balance was $261.1 million, decreasing by $4.7 million from the prior month. Receipts were $6.2 million, disbursements were $(12.1) million, and journal adjustments were $1.2 million for the month. Journal adjustments included the following: • Parks and Recreation transactions imported from Active Network into New World • Worker’s Compensation transactions • LAIF Transfer • Returned checks 3 Fund Balance/Net Position The City's General Fund ending fund balance was $135.7 million, decreasing by $3.1 million from the prior month due to revenues of $1.1 million and expenditures of $4.2 million. The City's total ending fund balance was $232.8 million, decreasing by $4.0 million from the prior month due to revenues of $1.7 million and expenditures of $5.5 million. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact. California Environmental Quality Act Not applicable. _____________________________________ Prepared by: __________________ Jonathan Orozco Finance Manager Reviewed by: __________________ Kristina Alfaro Director of Administrative Services Approved for Submission by: __________________ Pamela Wu City Manager Attachments: A – Report of City-wide Receipts, Disbursements, and Cash Balances July 2024 B – Report of City-wide Fund Balances/Net Position July 2024 July 2024 Report of City‐wide Receipts, Disbursements, and Cash Balances Cash and Investments  Beginning Balance  Ending Balance  Fund Type Fund Number/Name as of June 30, 2024 Receipts Disbursements Journal Adjustments as of July 31, 2024 General Fund 100  General Fund 169,936,255                                    5,427,511               (8,385,863)                102,126                               167,080,029                                     General Fund 130  Investment Fund 1,157,343                                         ‐                               ‐                                759,702                               1,917,045                                         Special Revenue Funds 210  Storm Drain Improvement 65,220                                              ‐                               ‐                                 ‐                                          65,220                                              Special Revenue Funds 215  Storm Drain AB1600 1,990,621                                         ‐                               ‐                                 ‐                                          1,990,621                                         Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 1,030,291                                        2,080                      (399,763)                    ‐                                          632,608                                            Special Revenue Funds 260  CDBG 261,317                                           1,324                      (20,416)                      ‐                                          242,224                                            Special Revenue Funds 261  HCD Loan Rehab 222,016                                            ‐                               ‐                                 ‐                                          222,016                                            Special Revenue Funds 265  BMR Housing 4,736,987                                        50,000                    (99,307)                      ‐                                          4,687,680                                         Special Revenue Funds 270  Transportation Fund 14,064,253                                      414,347                  (402,393)                    ‐                                          14,076,207                                       Special Revenue Funds 271  Traffic Impact 788,242                                            ‐                               ‐                                 ‐                                          788,242                                            Special Revenue Funds 280  Park Dedication 18,516,413                                      23,449                     ‐                                (8,449)                                 18,531,413                                       Special Revenue Funds 281  Tree Fund 74,327                                             2,060                       ‐                                 ‐                                          76,387                                              Debt Service Funds 365  Public Facilities Corp 250                                                   ‐                               ‐                                 ‐                                          250                                                   Capital Project Funds 420  Capital Improvement Fund 24,825,389                                       ‐                              (963,695)                    ‐                                          23,861,694                                       Capital Project Funds 427  Stevens Creek Corridor Park 151,394                                            ‐                               ‐                                 ‐                                          151,394                                            Capital Project Funds 429  Capital Reserve* 10,660,339                                       ‐                               ‐                                 ‐                                          10,660,339                                       Enterprise Funds 520  Resource Recovery 5,067,340                                        214,830                  (286,058)                    ‐                                          4,996,111                                         Enterprise Funds 560  Blackberry Farm 911,962                                           2,534                      (76,939)                     69,517                                 907,075                                            Enterprise Funds 570  Sports Center 793,991                                            ‐                              (133,110)                   53,334                                 714,215                                            Enterprise Funds 580  Recreation Program 3,325,250                                        22,035                    (388,657)                   236,867                               3,195,495                                         Internal Service Funds 610  Innovation & Technology 3,072,308                                        241                         (549,195)                    ‐                                          2,523,354                                         Internal Service Funds 620  Workersʹ Compensation 3,459,127                                         ‐                              (157,771)                    ‐                                          3,301,356                                         Internal Service Funds 630  Vehicle/Equip Replacement 1,673,231                                         ‐                              (119,718)                    ‐                                          1,553,513                                         Internal Service Funds 641  Compensated Absence/LTD 428,165                                            ‐                              229                             ‐                                          428,394                                            Internal Service Funds 642  Retiree Medical (1,401,947)                                       ‐                              (118,392)                    ‐                                          (1,520,339)                                       Total 265,810,083$                                  6,160,410$             (12,101,047)$            1,213,097$                          261,082,543$                                   * For reporting purposes, this fund rolls up/combines with Fund 420 Printed August 19, 2024 For more information on funds, please see cupertino.org/fund‐structure July 2024 Report of City‐wide Fund Balances/Net Position Beginning Fund Balance Ending Fund Balance Fund Type Fund Number/Name as of June 30, 2024 Revenues Expenditures as of July 31, 2024 General Fund 100  General Fund 138,753,663                                     1,119,986                           4,214,024                           135,659,625                                      General Fund 130  Investment Fund 229,425                                             ‐                                           ‐                                          229,425                                             Special Revenue Funds 210  Storm Drain Improvement 2,123,134                                          ‐                                           ‐                                          2,123,134                                          Special Revenue Funds 215  Storm Drain AB1600 1,884,127                                          ‐                                           ‐                                          1,884,127                                          Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 1,560,813                                          ‐                                          226,561                              1,334,252                                          Special Revenue Funds 260  CDBG 1,681,923                                         142                                     7,419                                  1,674,647                                          Special Revenue Funds 261  HCD Loan Rehab 222,016                                             ‐                                           ‐                                          222,016                                             Special Revenue Funds 265  BMR Housing 9,505,338                                          ‐                                          11,321                                9,494,017                                          Special Revenue Funds 270  Transportation Fund 10,024,411                                        ‐                                          154,243                              9,870,169                                          Special Revenue Funds 271  Traffic Impact 770,107                                             ‐                                           ‐                                          770,107                                             Special Revenue Funds 280  Park Dedication 18,200,452                                       15,000                                2,969                                  18,212,483                                        Special Revenue Funds 281  Tree Fund 79,309                                              2,060                                   ‐                                          81,369                                               Debt Service Funds 365  Public Facilities Corp 1,750                                                 ‐                                           ‐                                          1,750                                                 Capital Project Funds 420  Capital Improvement Fund 20,141,729                                        ‐                                          80,214                                20,061,515                                        Capital Project Funds 427  Stevens Creek Corridor Park 157,343                                             ‐                                           ‐                                          157,343                                             Capital Project Funds 429  Capital Reserve* 13,744,638                                        ‐                                           ‐                                          13,744,638                                        Enterprise Funds 520  Resource Recovery 5,027,122                                          ‐                                          143,990                              4,883,132                                          Enterprise Funds 560  Blackberry Farm 717,204                                            71,356                                23,617                                764,943                                             Enterprise Funds 570  Sports Center 1,825,335                                         64,449                                65,763                                1,824,021                                          Enterprise Funds 580  Recreation Program 2,749,895                                         393,650                              98,289                                3,045,257                                          Internal Service Funds 610  Innovation & Technology 2,054,651                                          ‐                                          273,567                              1,781,084                                          Internal Service Funds 620  Workersʹ Compensation 2,117,621                                          ‐                                          153,273                              1,964,348                                          Internal Service Funds 630  Vehicle/Equip Replacement 2,717,473                                          ‐                                          72,979                                2,644,494                                          Internal Service Funds 641  Compensated Absence/LTD 530,656                                            8,118                                  7,889                                  530,885                                             Internal Service Funds 642  Retiree Medical (125,960)                                            ‐                                           ‐                                          (125,960)                                            Total 236,694,177$                                   1,674,762$                        5,536,118$                        232,832,820$                                    * For reporting purposes, this fund rolls up/combines with Fund 420 Printed August 19, 2024 For more information on funds, please see cupertino.org/fund‐structure