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12 - December 12, 2024 - Monthly Treasurer's Report for October 2024 1 CITY COUNCIL INFORMATIONAL MEMORANDUM Date: December 12, 2024 To: Cupertino City Council From: Jonathan Orozco, Finance Manager Re: Receive the Monthly Treasurer's Report for October 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 October 2024. The report is as of November 25, 2024. Note: Beginning balances have been updated to account for any final adjustments made as part of the month-end close that could not be completed before the prior report’s preparation. These adjustments were necessary due to time constraints associated with both completing the month-end close process and generating the report. Receipts, Disbursements, and Cash Balance The City's General Fund ending cash and investment balance was $166.6 million, increasing by $1.3 million from the prior month. Receipts were $6.9 million, disbursements were $(6.4) million, and journal adjustments were $664,651 for the month. The City's total ending cash and investment balance was $271.3 million, increasing by $673,741 from the prior month. Receipts were $7.5 million, disbursements were $(7.9) million, and journal adjustments were $1.1 million for the month. Journal adjustments included the following: • Parks and Recreation transactions imported from Active Network into New World 3 • LAIF Interest • Returned Checks Fund Balance/Net Position The City's General Fund ending fund balance was $135.7 million, increasing by $1.8 million from the prior month due to revenues of $7.9 million and expenditures of $6.1 million. The City's total ending fund balance was $234.3 million, increasing by $1.3 million from the prior month due to revenues of $8.9 million and expenditures of $7.6 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 October 2024 B – Report of City-wide Fund Balances/Net Position October 2024 October 2024 Report of City‐wide Receipts, Disbursements, and Cash Balances Cash and Investments  Beginning Balance  Ending Balance  Fund Type Fund Number/Name as of September 30, 2024 Receipts Disbursements Journal Adjustments as of October 31, 2024 General Fund 100  General Fund 165,350,806                                    6,946,313               (6,356,300)                664,651                               166,605,470                                     General Fund 130  Investment Fund 0                                                       ‐                               ‐                                 ‐                                          0                                                       Special Revenue Funds 210  Storm Drain Improvement 142,558                                            ‐                               ‐                                460                                      143,018                                            Special Revenue Funds 215  Storm Drain AB1600 2,069,124                                        2,268                       ‐                                6,526                                   2,077,918                                         Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 648,500                                           49,198                    (70,555)                     2,530                                   629,672                                            Special Revenue Funds 260  CDBG 284,970                                           1,324                      (2,432)                       1,620                                   285,482                                            Special Revenue Funds 261  HCD Loan Rehab 226,287                                            ‐                               ‐                                 ‐                                          226,287                                            Special Revenue Funds 265  BMR Housing 4,820,261                                         ‐                              (22,668)                     15,366                                 4,812,959                                         Special Revenue Funds 270  Transportation Fund 16,378,893                                      301,291                  (134,101)                   52,881                                 16,598,964                                       Special Revenue Funds 271  Traffic Impact 812,815                                            ‐                               ‐                                2,577                                   815,392                                            Special Revenue Funds 280  Park Dedication 19,056,176                                       ‐                              (5,539)                       60,421                                 19,111,059                                       Special Revenue Funds 281  Tree Fund 65,854                                              ‐                               ‐                                209                                      66,063                                              Debt Service Funds 365  Public Facilities Corp 2,676,450                                         ‐                               ‐                                 ‐                                          2,676,450                                         Capital Project Funds 420  Capital Improvement Fund 36,416,242                                       ‐                              (349,633)                    ‐                                          36,066,609                                       Capital Project Funds 427  Stevens Creek Corridor Park 154,548                                            ‐                               ‐                                 ‐                                          154,548                                            Capital Project Funds 429  Capital Reserve* 2,438,876                                         ‐                               ‐                                 ‐                                          2,438,876                                         Enterprise Funds 520  Resource Recovery 5,390,476                                        146,225                  (263,366)                   17,411                                 5,290,746                                         Enterprise Funds 560  Blackberry Farm 1,069,252                                        1,596                      (90,181)                     51,743                                 1,032,411                                         Enterprise Funds 570  Sports Center 1,026,326                                        43,750                    (83,504)                     69,414                                 1,055,986                                         Enterprise Funds 580  Recreation Program 3,250,478                                        13,108                    (63,457)                     83,451                                 3,283,580                                         Internal Service Funds 610  Innovation & Technology 3,198,782                                         ‐                              (210,091)                   7,585                                   2,996,277                                         Internal Service Funds 620  Workersʹ Compensation 3,388,032                                         ‐                              (2,912)                       10,675                                 3,395,795                                         Internal Service Funds 630  Vehicle/Equip Replacement 1,079,462                                         ‐                              (112,587)                   4,057                                   970,933                                            Internal Service Funds 641  Compensated Absence/LTD 833,045                                            ‐                              270                            3,270                                   836,585                                            Internal Service Funds 642  Retiree Medical (169,305)                                          ‐                              (119,124)                    ‐                                          (288,429)                                          Total 270,608,910$                                  7,505,072$             (7,886,180)$              1,054,848$                          271,282,651$                                   * For reporting purposes, this fund rolls up/combines with Fund 420 Printed November 25, 2024 For more information on funds, please see cupertino.org/fund‐structure October 2024 Report of City‐wide Fund Balances/Net Position Beginning Fund Balance Ending Fund Balance Fund Type Fund Number/Name as of September 30, 2024 Revenues Expenditures as of October 31, 2024 General Fund 100  General Fund 133,916,392                                     7,864,836                           6,090,104                           135,691,124                                      General Fund 130  Investment Fund 229,425                                             ‐                                           ‐                                          229,425                                             Special Revenue Funds 210  Storm Drain Improvement 2,123,559                                         460                                      ‐                                          2,124,020                                          Special Revenue Funds 215  Storm Drain AB1600 1,893,664                                         8,794                                   ‐                                          1,902,458                                          Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 1,043,235                                         6,247                                  66,239                                983,243                                             Special Revenue Funds 260  CDBG 1,690,234                                         1,898                                  2,432                                  1,689,700                                          Special Revenue Funds 261  HCD Loan Rehab 222,016                                             ‐                                           ‐                                          222,016                                             Special Revenue Funds 265  BMR Housing 9,590,710                                         15,366                                22,668                                9,583,408                                          Special Revenue Funds 270  Transportation Fund 10,448,229                                       354,172                              116,350                              10,686,052                                        Special Revenue Funds 271  Traffic Impact 772,491                                            2,577                                   ‐                                          775,068                                             Special Revenue Funds 280  Park Dedication 18,741,343                                       60,421                                5,539                                  18,796,226                                        Special Revenue Funds 281  Tree Fund 78,954                                              209                                      ‐                                          79,163                                               Debt Service Funds 365  Public Facilities Corp 1,750                                                 ‐                                           ‐                                          1,750                                                 Capital Project Funds 420  Capital Improvement Fund 20,851,288                                        ‐                                          362,741                              20,488,547                                        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 4,630,626                                         160,802                              247,601                              4,543,828                                          Enterprise Funds 560  Blackberry Farm 675,086                                            56,946                                48,695                                683,336                                             Enterprise Funds 570  Sports Center 1,747,089                                         117,546                              92,952                                1,771,683                                          Enterprise Funds 580  Recreation Program 2,897,124                                         200,195                              92,896                                3,004,422                                          Internal Service Funds 610  Innovation & Technology 2,497,879                                         7,585                                  221,802                              2,283,663                                          Internal Service Funds 620  Workersʹ Compensation 2,126,864                                         10,675                                2,912                                  2,134,628                                          Internal Service Funds 630  Vehicle/Equip Replacement 2,595,456                                         4,057                                  113,362                              2,486,152                                          Internal Service Funds 641  Compensated Absence/LTD 508,435                                            11,510                                7,971                                  511,975                                             Internal Service Funds 642  Retiree Medical (123,286)                                            ‐                                          119,124                              (242,409)                                            Total 233,060,546$                                   8,884,297$                        7,613,386$                        234,331,457$                                    * For reporting purposes, this fund rolls up/combines with Fund 420 Printed November 25, 2024 For more information on funds, please see cupertino.org/fund‐structure