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July 25, 2024 - Monthly Treasurer’s Report for June 2024 1 CITY COUNCIL INFORMATIONAL MEMORANDUM Date: July 25, 2024 To: Cupertino City Council From: Jonathan Orozco, Finance Manager Re: Receive the Monthly Treasurer's Report for June 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 June 2024. The report is as of July 22, 2024. Receipts, Disbursements, and Cash Balance The City's General Fund ending cash and investment balance was $170.4 million, increasing by $518,786 from the prior month. Receipts were $7.3 million, disbursements were $(6.5) million, and journal adjustments were $(352,713) for the month. The City's total ending cash and investment balance was $265.8 million, increasing by $1.9 million from the prior month. Receipts were $10.0 million, disbursements were $(8.5) million, and journal adjustments were $349,722 for the month. Journal adjustments included the following: • Parks and Recreation transactions imported from Active Network into New World • Worker’s Compensation transactions • Cost Allocation Plan Quarterly Charges • LAIF Transfer • Park Dedication transfer to Jollyman Park for the All-Inclusive Playground • Returned checks 3 Fund Balance/Net Position The City's General Fund ending fund balance was $133.2 million, decreasing by $1.6 million from the prior month due to revenues of $3.1 million and expenditures of $4.7 million. The City's total ending fund balance was $222.8 million, decreasing by $1.6 million from the prior month due to revenues of $4.2 million and expenditures of $5.8 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 June 2024 B – Report of City-wide Fund Balances/Net Position June 2024 June 2024 Report of City‐wide Receipts, Disbursements, and Cash Balances Cash and Investments  Beginning Balance  Ending Balance  Fund Type Fund Number/Name as of May 31, 2024 Receipts Disbursements Journal Adjustments as of June 30, 2024 General Fund 100  General Fund 169,847,289                                    7,349,016               (6,477,518)                (352,713)                             170,366,074                                     General Fund 130  Investment Fund 397,641                                            ‐                               ‐                                 ‐                                          397,641                                            Special Revenue Funds 210  Storm Drain Improvement 65,654                                              ‐                               ‐                                 ‐                                          65,654                                              Special Revenue Funds 215  Storm Drain AB1600 1,983,118                                        1,844                       ‐                                 ‐                                          1,984,962                                         Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 604,182                                           578,228                  (62,261)                     (86,536)                               1,033,614                                         Special Revenue Funds 260  CDBG 233,182                                           32,952                    (4,111)                        ‐                                          262,023                                            Special Revenue Funds 261  HCD Loan Rehab 222,016                                            ‐                               ‐                                 ‐                                          222,016                                            Special Revenue Funds 265  BMR Housing 4,793,586                                         ‐                              (24,564)                     (23,977)                               4,745,045                                         Special Revenue Funds 270  Transportation Fund 14,615,298                                      293,160                  (606,534)                   (194,641)                             14,107,283                                       Special Revenue Funds 271  Traffic Impact 790,668                                            ‐                               ‐                                 ‐                                          790,668                                            Special Revenue Funds 280  Park Dedication 19,058,481                                      15,000                     ‐                                (500,000)                             18,573,481                                       Special Revenue Funds 281  Tree Fund 73,526                                             1,030                       ‐                                 ‐                                          74,556                                              Debt Service Funds 365  Public Facilities Corp 250                                                   ‐                               ‐                                 ‐                                          250                                                   Capital Project Funds 420  Capital Improvement Fund 24,650,595                                      3,069                      (328,275)                   500,000                               24,825,389                                       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 5,001,206                                        320,042                  (171,506)                   (66,757)                               5,082,985                                         Enterprise Funds 560  Blackberry Farm 900,474                                           2,877                      (41,896)                     56,257                                 917,712                                            Enterprise Funds 570  Sports Center 855,663                                            ‐                              (95,107)                     (5,581)                                 754,976                                            Enterprise Funds 580  Recreation Program 3,437,966                                        43,750                    (125,702)                   30,571                                 3,386,585                                         Internal Service Funds 610  Innovation & Technology 2,709,726                                         ‐                              (264,617)                   636,715                               3,081,823                                         Internal Service Funds 620  Workersʹ Compensation 3,492,418                                         ‐                              (5,305)                       (17,300)                               3,469,813                                         Internal Service Funds 630  Vehicle/Equip Replacement 1,427,733                                        262                         (128,596)                   378,800                               1,678,199                                         Internal Service Funds 641  Compensated Absence/LTD 611,721                                            ‐                              196                            (1,618)                                 610,299                                            Internal Service Funds 642  Retiree Medical (2,661,746)                                      1,385,759               (122,463)                   (3,497)                                 (1,401,947)                                       Total 263,922,379$                                  10,026,990$           (8,458,258)$              349,722$                             265,840,834$                                   * For reporting purposes, this fund rolls up/combines with Fund 420 Printed July 22, 2024 For more information on funds, please see cupertino.org/fund‐structure June 2024 Report of City‐wide Fund Balances/Net Position Beginning Fund Balance Ending Fund Balance Fund Type Fund Number/Name as of May 31, 2024 Revenues Expenditures as of June 30, 2024 General Fund 100  General Fund 134,848,683                                     3,073,073                           4,681,113                           133,240,643                                      General Fund 130  Investment Fund 229,425                                             ‐                                           ‐                                          229,425                                             Special Revenue Funds 210  Storm Drain Improvement 1,823,134                                          ‐                                           ‐                                          1,823,134                                          Special Revenue Funds 215  Storm Drain AB1600 1,919,187                                          ‐                                           ‐                                          1,919,187                                          Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 1,130,255                                         577,541                              31,538                                1,676,259                                          Special Revenue Funds 260  CDBG 1,139,291                                         145                                     4,111                                  1,135,325                                          Special Revenue Funds 261  HCD Loan Rehab 222,016                                             ‐                                           ‐                                          222,016                                             Special Revenue Funds 265  BMR Housing 5,184,142                                          ‐                                          24,564                                5,159,578                                          Special Revenue Funds 270  Transportation Fund 10,238,089                                       293,160                              478,559                              10,052,690                                        Special Revenue Funds 271  Traffic Impact 770,107                                             ‐                                           ‐                                          770,107                                             Special Revenue Funds 280  Park Dedication 18,700,452                                        ‐                                           ‐                                          18,700,452                                        Special Revenue Funds 281  Tree Fund 78,279                                               ‐                                           ‐                                          78,279                                               Debt Service Funds 365  Public Facilities Corp (2,354,550)                                         ‐                                           ‐                                          (2,354,550)                                         Capital Project Funds 420  Capital Improvement Fund 20,850,722                                       3,069                                  290,355                              20,563,437                                        Capital Project Funds 427  Stevens Creek Corridor Park 157,343                                             ‐                                           ‐                                          157,343                                             Capital Project Funds 429  Capital Reserve* 14,044,638                                        ‐                                           ‐                                          14,044,638                                        Enterprise Funds 520  Resource Recovery 4,684,142                                          ‐                                          (81,689)                              4,765,832                                          Enterprise Funds 560  Blackberry Farm 772,702                                            67,341                                34,552                                805,491                                             Enterprise Funds 570  Sports Center 1,767,650                                         65,991                                33,458                                1,800,183                                          Enterprise Funds 580  Recreation Program 2,764,796                                         141,837                              76,921                                2,829,712                                          Internal Service Funds 610  Innovation & Technology 1,792,743                                          ‐                                          111,811                              1,680,932                                          Internal Service Funds 620  Workersʹ Compensation 2,128,468                                          ‐                                          3,825                                  2,124,642                                          Internal Service Funds 630  Vehicle/Equip Replacement 2,370,286                                         262                                     25,599                                2,344,949                                          Internal Service Funds 641  Compensated Absence/LTD 720,889                                            7                                         7,962                                  712,934                                             Internal Service Funds 642  Retiree Medical (1,517,778)                                         ‐                                          122,463                              (1,640,241)                                         Total 224,465,111$                                   4,222,428$                        5,845,141$                        222,842,398$                                    * For reporting purposes, this fund rolls up/combines with Fund 420 Printed July 22, 2024 For more information on funds, please see cupertino.org/fund‐structure