CC Resolution No. 24-106 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2024-25 BY APPROPRIATING, TRANSFERRING, AND UNAPPROPRIATING MONIESRESOLUTION NO. 24-106
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2024-25 BY
APPROPRIATING, TRANSFERRING, AND UNAPPROPRIATING MONIES
FOR SPECIFIED FUNDS
WHEREAS, the orderly administration of municipal government
depends on a sound fiscal policy of maintaining a proper ratio of expenditures
within anticipated revenues and available monies; and
WHEREAS, accomplishing City Council directives, projects and
programs, and performing staff duties and responsibilities likewise depends on
the monies available for that purpose; and
WHEREAS, the City Manager has determined that the balances from the
funds specified in this resolution are adequate to cover the proposed amended
appropriations, and therefore recommends the fund reallocations described herein.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby
approve the recommended fund reallocations and ratifies the attached amended
appropriations as set forth in Exhibit A.
PASSED AND ADOPTED at a regular meeting of the City Council of the
City of Cupertino this 3rd day of December 2024, by the following vote:
Vote Members of the City Council
AYES: Mohan, Fruen, Chao, Moore
NOES: None
ABSENT: Wei
ABSTAIN: None
Resolution No. 24-106
Page 2
SIGNED:
________________________
Sheila Mohan, Mayor
City of Cupertino
12/12/2024______________
Date
ATTEST:
________________________
Kirsten Squarcia, City Clerk
12/12/2024
Date
Resolution No. 24-106
Page 3
Exhibit A
Appropriation
Amendment by Fund
Appropriation
Amendment
Revenue
Amendment
Fund Balance
(Use of)
General Fund $631,126 $- $(631,126)
Special Revenue Funds $53,570 $53,570 $-
Capital Projects Funds $- $- $-
Enterprise Funds $- $- $-
Internal Service Funds $(299,998) $- $299,998
Total Appropriation
Amendment All Funds $384,698 $53,570 $(331,128)
This Financial Report is interactive. Click on a chart to learn more.
Background
On June 4, 2024, the City Council adopted the FY 2024-25 Adopted Budget, a $146.6 million spending plan funded by $139.3 million
in revenue and $7.3 million in fund balance. The adopted budget reflected a $102,805 increase from the proposed budget. As a result
of these budget adjustments, encumbrances, and carryovers, the amended budget at the end of the first quarter is $217.4 million,
funded with $175.0 million in revenue and $42.4 million in fund balance.
Amended Budget
2023-24
Adopted Budget
2023-24
Amended Budget
Q1
2023-24
Amended Budget
Q2
2023-24
Amended Budget
Q3
2023-24
Amended Budget
Q4
2024-25
Adopted Budget
2024-25
Amended Budget
Q1
Fiscal Year
0.0
50.0M
100.0M
150.0M
200.0M
Do
l
l
a
r
s
Public Works
Capital Projects
Community Development
Law Enforcement
Non Departmental
Parks and Recreation
Administrative Services
Innovation & Technology
Administration
Council and Commissions
Description pending
CITY OF CUPERTINO
FY 2024-25 First Quarter Financial Report
The following is the First Quarter Financial Report, submitted by the Administrative Services Department for the period of July 1, 2024 to
September 30, 2024 for Fiscal Year (FY) 2024-25. It has been prepared to inform the City Council, City leadership and the public of the
City’s fiscal status.
Flow of Funds Chart ($ in Millions)
General Fund Revenues, Expenditures, and Fund Balance
To date the City’s financial statement audit has yet to be issued and revenue, expenditure, and fund balance totals listed in this report
are preliminary and subject to change after a full review by the City’s auditors. City staff does not anticipate many if any changes from
the auditors.
-$14,328,830.32
Revenues Less Expenses in Sep 2024
-$20M
-$15M
-$10M
-$5M
$0
Sep 2020 Sep 2022 Sep 2024
$27,538,980.23
Revenues Less Expenses in Jun 2024
$0
$5M
$10M
$15M
$20M
$25M
$30M
Jun 2022 Jun 2024
Revenues vs. Expenditures
June
2020-21
Actual
September
2021-22
Actual
2021-22
Amended Budget
Q1
June
2022-23
Actual
September
2023-24
Actual
2023-24
Amended Budget
Q1
2024-25
Amended Budge
Q1
Fiscal Year
0.0
100.0M
25.0M
50.0M
75.0M
125.0M
Do
l
l
a
r
s
Revenues
Expenses
General Fund Revenue and Expenditure Trends
As of September 30, 2024, General Fund revenues are at $11.5 million, which is 9% of budgeted revenue. Revenues at the first
quarter point of the prior three years were between 13% and 18% of budgeted revenues, placing this year slightly below the range.
Staff will continue to monitor its leading revenue sources as the year progresses.
General Fund expenditures are $25.5 million, which is 21% of budgeted appropriations. Expenditures at the first quarter point of the
prior three years ranged between 23% and 27% of budgeted appropriations which places current first quarter actuals within the range.
General Fund Revenues vs
Expenditures First Quarter
Data Updated Nov 26, 2024, 11:35 AM
General Fund Revenues vs
Expenses Year End
Data Updated Nov 26, 2024, 11:35 AM
General Fund Revenues - First Quarter vs Budget
Data Updated Nov 26, 2024, 11:35 AM
9/2020 9/2021 9/2022 9/2023 9/2024
9.18%
In Revenues of $122,062,969.00 Budgeted through Sep 2024
General Fund Expenses - First Quarter vs Budget
Data Updated Nov 26, 2024, 11:35 AM
9/2020 9/2021 9/2022 9/2023 9/2024
21.43%
In Expenses of $119,145,337.00 Budgeted through Sep 2024
As of the first quarter, overall revenue is $11.5 million, which is $7.1 million, or 70%, lower than the same time last year. This is
primarily due to decreases in sales tax, intergovernmental, and use of money and property.
As of first quarter, overall expenditures are $25.5 million, which is $127,065, or 0%, lower than the same time last year. This is
primarily due to decreases in contract services.
$11,203,976.70
Revenues in Sep 2024
$0
$20M
$40M
$60M
$80M
$100M
$120M
Sep 2021 Jun 2023 Sep 2024
$25,532,807.02
Expenses in Sep 2024
$0
$20M
$40M
$60M
$80M
$100M
Sep 2021 Jun 2023 Sep 2024
General Fund Revenues -
First Quarter vs Year End
Data Updated Nov 26, 2024, 11:35 AM
General Fund Expenses -
First Quarter vs Year End
Data Updated Nov 26, 2024, 11:35 AM
$11,203,976.67
Revenues in Sep 2024
Charges for Serv...
Sales Tax
Other
Utility Tax
Other Financing ...
Licenses and Per...
$25,532,807.02
Expenses in Sep 2024
Transfers Out
Contract Service...
Other
Employee Benefit...
Cost Allocation
Employee Compens...
General Fund Classification of Fund Balance
The General Fund’s estimated, unaudited ending fund balance for FY 2023-24 is $166.1 million. An increase from estimated year-end
fund balance from FY 2024-25 Final Budget and the October 15, 2024 uncommitting of sales tax repayment reserve council item of
$15.3 million. This increase is primarily due to the prior year ending with expenditure savings that outpaced revenue decreases.
Expenditure savings were primarily because of salary and contract savings along with increased revenues.
As of first quarter, staff anticipates the General Fund will end FY 2024-25 with $164.3 million in fund balance. It’s important to note that
the only portion available for use, according to City policy, is unassigned funds. Committed funds are set aside for specific purposes
determined by City Council resolution. Restricted funds, such as the Section 115 Pension Trust, are allocated for specific purposes
stipulated by external resource providers. Assigned funds are reserved for encumbrances. Of the total fund balance, $96.2 million is
unassigned and available to be used. Options for allocating those unassigned funds will be presented to City Council for their
consideration this evening.
Approximately $10.7 million of unassigned fund balance is attributed to Vallco Town Center plan check and building inspection
revenues that were carried over. These revenues will continue to be carried over each year until the services are rendered, and the
revenues are recognized.
On October 10, 2023, the City established a committed Sales Tax Repayment Reserve with an initial allocation of $56.5 million. This
reserve was designed to address a potential adverse CDTFA decision and the uncertain outcome of the anticipated legal challenge.
This reserve was later increased to $74.5 million to account for revenue through the end of FY 2023-24. These funds were
uncommitted in October 2024 after the City settled with the CDTFA. Since this change occurred after September 30, 2024, they are
not reflected in the table below. Committed fund balance, as described on page 167 of the FY 2024-25 Adopted Budgets, “includes
amounts that can only be used for the specific purposes determined by formal action of the City’s highest level of decision-making
authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action (resolution) that
imposed the constraint originally.”
The Cities’ financial auditor issued FY24 financial statements, and this chart has been updated to reflect that document.
General Fund Revenues by
Type
Data Updated Nov 26, 2024, 11:35 AM
General Fund Expenses by
Type
Data Updated Nov 26, 2024, 11:35 AM
*Q1 Year-End Projections assume budgeted revenues and expenditures are fully collected and incurred. Fund balances do not
consider City Council actions after September 30, 2024.
Recommended Adjustments
As of the first quarter, Departments are requesting budget adjustments to ensure they end the year within budget appropriations. The
recommended adjustments are summarized in the table below:
Summary
The First Quarter Financial Report shows the City is positioned as anticipated. City staff recommends adjustments of $384,698 in new
appropriations, funded by increases in revenue of $53,570 because of transfers in from the General Fund and the use of one-time
unassigned fund balance of $331,128. The City will continue to monitor its revenue and expenditure trends closely to ensure it
remains on track toward achieving its budgetary goals and objectives.
City of Cupertino, California
Cupertino City Hall
10300 Torre Avenue
Cupertino, CA 95014-3202
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