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September 26, 2024 - Monthly Treasurer’s Report for August 2024 1 CITY COUNCIL INFORMATIONAL MEMORANDUM Date: September 26, 2024 To: Cupertino City Council From: Jonathan Orozco, Finance Manager Re: Receive the Monthly Treasurer's Report for August 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 August 2024. The report is as of September 24, 2024. Receipts, Disbursements, and Cash Balance The City's General Fund ending cash and investment balance was $164.7 million, increasing by $2.3 million from the prior month. Receipts were $8.3 million, disbursements were $(6.1) million, and journal adjustments were $90,070 for the month. The City's total ending cash and investment balance was $264.6 million, increasing by $1.5 million from the prior month. Receipts were $9.1 million, disbursements were $(8.3) million, and journal adjustments were $643,593 for the month. Journal adjustments included the following: • Parks and Recreation transactions imported from Active Network into New World • Worker’s Compensation transactions • Returned checks 3 Fund Balance/Net Position The City's General Fund ending fund balance was $126.0 million, decreasing by $3.3 million from the prior month due to revenues of $1.5 million and expenditures of $4.8 million. The City's total ending fund balance was $231.4 million, decreasing by $4.0 million from the prior month due to revenues of $2.3 million and expenditures of $6.2 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 August 2024 B – Report of City-wide Fund Balances/Net Position August 2024 August 2024 Report of City‐wide Receipts, Disbursements, and Cash Balances Cash and Investments  Beginning Balance  Ending Balance  Fund Type Fund Number/Name as of July 31, 2024 Receipts Disbursements Journal Adjustments as of August 31, 2024 General Fund 100  General Fund 162,412,005 8,310,598               (6,120,069) 90,070 164,692,604  General Fund 130  Investment Fund 1,157,343 ‐ ‐ ‐ 1,157,343  Special Revenue Funds 210  Storm Drain Improvement 66,044 ‐ ‐ ‐ 66,044  Special Revenue Funds 215  Storm Drain AB1600 2,002,188 1,548 ‐ ‐ 2,003,736  Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 917,685 57 (96,045) ‐ 821,697  Special Revenue Funds 260  CDBG 245,129 74,524 (52,251) ‐ 267,403  Special Revenue Funds 261  HCD Loan Rehab 222,016 ‐ ‐ ‐ 222,016  Special Revenue Funds 265  BMR Housing 4,715,457 ‐ (40,654) ‐ 4,674,803  Special Revenue Funds 270  Transportation Fund 16,332,374 305,496 (485,000) ‐ 16,152,870  Special Revenue Funds 271  Traffic Impact 792,853 ‐ ‐ ‐ 792,853  Special Revenue Funds 280  Park Dedication 18,563,876 ‐ (2,969) ‐ 18,560,907  Special Revenue Funds 281  Tree Fund 61,823 1,511 ‐ ‐ 63,334  Debt Service Funds 365  Public Facilities Corp 2,676,450 ‐ ‐ ‐ 2,676,450  Capital Project Funds 420  Capital Improvement Fund 31,625,881 ‐ (454,524) ‐ 31,171,357  Capital Project Funds 427  Stevens Creek Corridor Park 151,394 ‐ ‐ ‐ 151,394  Capital Project Funds 429  Capital Reserve*2,112,759 ‐ ‐ ‐ 2,112,759  Enterprise Funds 520  Resource Recovery 5,025,849 385,296 (64,030) ‐ 5,347,116  Enterprise Funds 560  Blackberry Farm 1,022,550 2,583 (36,680) 65,053 1,053,506  Enterprise Funds 570  Sports Center 1,117,151 ‐ (109,743) 86,408 1,093,816  Enterprise Funds 580  Recreation Program 3,205,279 13,488 (315,590) 405,685 3,308,862  Internal Service Funds 610  Innovation & Technology 2,738,311 ‐ (290,337) ‐ 2,447,974  Internal Service Funds 620  Workersʹ Compensation 3,316,015 ‐ (7,583) (3,621) 3,304,811  Internal Service Funds 630  Vehicle/Equip Replacement 1,562,955 ‐ (64,266) ‐ 1,498,689  Internal Service Funds 641  Compensated Absence/LTD 1,022,981 ‐ (7,844) ‐ 1,015,137  Internal Service Funds 642  Retiree Medical 72,059 ‐ (118,084) ‐ (46,025)  Total 263,138,427$ 9,095,101$             (8,265,667)$              643,593$ 264,611,454$  * For reporting purposes, this fund rolls up/combines with Fund 420 Printed September 24, 2024 For more information on funds, please see cupertino.org/fund‐structure August 2024 Report of City‐wide Fund Balances/Net Position Beginning Fund Balance Ending Fund Balance Fund Type Fund Number/Name as of July 31, 2024 Revenues Expenditures as of August 31, 2024 General Fund 100  General Fund 129,269,709                                     1,520,732                           4,822,476                           125,967,965                                      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 1,870,538                                         1,548                                   ‐                                          1,872,086                                          Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 1,272,573                                          ‐                                          64,571                                1,208,002                                          Special Revenue Funds 260  CDBG 1,686,568                                         141                                     2,191                                  1,684,518                                          Special Revenue Funds 261  HCD Loan Rehab 222,016                                             ‐                                           ‐                                          222,016                                             Special Revenue Funds 265  BMR Housing 9,565,425                                          ‐                                          22,550                                9,542,875                                          Special Revenue Funds 270  Transportation Fund 12,694,838                                       305,496                              99,848                                12,900,486                                        Special Revenue Funds 271  Traffic Impact 770,107                                             ‐                                           ‐                                          770,107                                             Special Revenue Funds 280  Park Dedication 18,697,483                                        ‐                                          53                                       18,697,431                                        Special Revenue Funds 281  Tree Fund 65,339                                              1,511                                   ‐                                          66,850                                               Debt Service Funds 365  Public Facilities Corp 2,677,950                                          ‐                                           ‐                                          2,677,950                                          Capital Project Funds 420  Capital Improvement Fund 28,727,342                                        ‐                                          281,257                              28,446,085                                        Capital Project Funds 427  Stevens Creek Corridor Park 157,343                                             ‐                                           ‐                                          157,343                                             Capital Project Funds 429  Capital Reserve* 5,197,058                                          ‐                                           ‐                                          5,197,058                                          Enterprise Funds 520  Resource Recovery 4,659,880                                         143,391                              121,958                              4,681,314                                          Enterprise Funds 560  Blackberry Farm 892,251                                            73,084                                32,889                                932,446                                             Enterprise Funds 570  Sports Center 2,307,255                                         79,673                                90,937                                2,295,991                                          Enterprise Funds 580  Recreation Program 3,261,058                                         183,129                              275,498                              3,168,689                                          Internal Service Funds 610  Innovation & Technology 1,755,461                                          ‐                                          210,579                              1,544,882                                          Internal Service Funds 620  Workersʹ Compensation 1,981,301                                          ‐                                          11,204                                1,970,097                                          Internal Service Funds 630  Vehicle/Equip Replacement 2,409,386                                          ‐                                          45,169                                2,364,217                                          Internal Service Funds 641  Compensated Absence/LTD 1,303,554                                         9                                         7,853                                  1,295,710                                          Internal Service Funds 642  Retiree Medical 1,474,006                                          ‐                                          118,084                              1,355,922                                          Total 235,270,999$                                   2,308,714$                        6,207,116$                        231,372,598$                                    * For reporting purposes, this fund rolls up/combines with Fund 420 Printed September 24, 2024 For more information on funds, please see cupertino.org/fund‐structure