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01 - January 30, 2025 - Monthly Treasurer’s Report for December 2024 1 CITY COUNCIL INFORMATIONAL MEMORANDUM Date: January 30, 2025 To: Cupertino City Council From: Jonathan Orozco, Finance Manager Re: Receive the Monthly Treasurer's Report for December 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 December 2024. The report is as of January 28, 2025. 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 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 $195.4 million, decreasing by $4.8 million from the prior month. Receipts were $10.1 million, disbursements were $(15.1 ) million, and journal adjustments were $251,441 for the month. The City's total ending cash and investment balance was $298 .3 million, decreasing by $5.8 million from the prior month. Receipts were $10.6 million, disbursements were $(17.3) million, and journal adjustments were $985,035 for the month. Journal adjustments included the following: • Parks and Recreation transactions imported from Active Network into New World 3 • Quarterly CAP Charges • Investment and interest earnings • Worker’s Compensation Journals • Bank Fees • Returned Checks Fund Balance/Net Position The City's General Fund ending fund balance was $140.2 million, decreasing by $4.5 million from the prior month due to revenues of $13.4 million and expenditures of $17.9 million. The City's total ending fund balance was $238.0 million, decreasing by $5.1 million from the prior month due to revenues of $16.2 million and expenditures of $21.4 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 December 2024 B – Report of City-wide Fund Balances/Net Position December 2024 December 2024 Report of City‐wide Receipts, Disbursements, and Cash Balances Cash and Investments  Beginning Balance  Ending Balance  Fund Type Fund Number/Name as of November 30, 2024 Receipts Disbursements Journal Adjustments as of December 31, 2024 General Fund 100  General Fund 200,211,679                                    10,100,041             (15,143,806)              251,441                               195,419,356                                     General Fund 130  Investment Fund 0                                                       ‐                               ‐                                 ‐                                          0                                                       Special Revenue Funds 210  Storm Drain Improvement 145,627                                            ‐                               ‐                                634                                      146,261                                            Special Revenue Funds 215  Storm Drain AB1600 2,118,732                                        1,643                       ‐                                9,238                                   2,129,612                                         Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 526,072                                            ‐                              (145,307)                   (150,282)                             230,483                                            Special Revenue Funds 260  CDBG 272,940                                           662                         (6,896)                       55,964                                 322,670                                            Special Revenue Funds 261  HCD Loan Rehab 230,372                                            ‐                               ‐                                 ‐                                          230,372                                            Special Revenue Funds 265  BMR Housing 4,819,937                                         ‐                              (15,817)                     (5,762)                                 4,798,359                                         Special Revenue Funds 270  Transportation Fund 15,752,308                                      274,106                  (222,731)                   (264,917)                             15,538,766                                       Special Revenue Funds 271  Traffic Impact 829,996                                            ‐                               ‐                                3,616                                   833,612                                            Special Revenue Funds 280  Park Dedication 19,469,577                                      30,000                    (8,338)                       84,915                                 19,576,154                                       Special Revenue Funds 281  Tree Fund 67,442                                              ‐                               ‐                                294                                      67,736                                              Debt Service Funds 365  Public Facilities Corp 2,395,850                                         ‐                              (1,500)                        ‐                                          2,394,350                                         Capital Project Funds 420  Capital Improvement Fund 36,207,270                                      3,000                      (946,638)                    ‐                                          35,263,632                                       Capital Project Funds 427  Stevens Creek Corridor Park 157,338                                            ‐                               ‐                                 ‐                                          157,338                                            Capital Project Funds 429  Capital Reserve* 2,637,212                                         ‐                               ‐                                 ‐                                          2,637,212                                         Enterprise Funds 520  Resource Recovery 5,405,610                                        143,391                  (165,521)                   (92,149)                               5,291,331                                         Enterprise Funds 560  Blackberry Farm 1,037,364                                         ‐                              (49,956)                     (272)                                    987,135                                            Enterprise Funds 570  Sports Center 1,013,770                                         ‐                              (84,530)                     (67,005)                               862,235                                            Enterprise Funds 580  Recreation Program 3,299,416                                        6,405                      (98,182)                     (41,132)                               3,166,506                                         Internal Service Funds 610  Innovation & Technology 2,750,846                                         ‐                              (259,762)                   810,273                               3,301,357                                         Internal Service Funds 620  Workersʹ Compensation 3,445,025                                         ‐                              (8,063)                       233,334                               3,670,296                                         Internal Service Funds 630  Vehicle/Equip Replacement 893,699                                           9,110                      (66,626)                     315,099                               1,151,281                                         Internal Service Funds 641  Compensated Absence/LTD 853,417                                            ‐                              115                            (154,091)                             699,441                                            Internal Service Funds 642  Retiree Medical (408,928)                                          ‐                              (118,706)                   (4,162)                                 (531,796)                                          Total 304,132,570$                                  10,568,359$           (17,342,265)$            985,035$                             298,343,699$                                   * For reporting purposes, this fund rolls up/combines with Fund 420 Printed January 28, 2025 For more information on funds, please see cupertino.org/fund‐structure December 2024 Report of City‐wide Fund Balances/Net Position Beginning Fund Balance Ending Fund Balance Fund Type Fund Number/Name as of November 30, 2024 Revenues Expenditures as of December 31, 2024 General Fund 100  General Fund 144,768,653                                     13,445,180                        17,943,856                        140,269,977                                      General Fund 130  Investment Fund 229,425                                             ‐                                           ‐                                          229,425                                             Special Revenue Funds 210  Storm Drain Improvement 2,123,143                                         634                                      ‐                                          2,123,778                                          Special Revenue Funds 215  Storm Drain AB1600 1,873,181                                         10,881                                 ‐                                          1,884,061                                          Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 1,129,179                                         3,855                                  297,274                              835,760                                             Special Revenue Funds 260  CDBG 1,676,207                                         56,101                                6,896                                  1,725,412                                          Special Revenue Funds 261  HCD Loan Rehab 222,016                                             ‐                                           ‐                                          222,016                                             Special Revenue Funds 265  BMR Housing 9,495,841                                         20,932                                42,510                                9,474,263                                          Special Revenue Funds 270  Transportation Fund 10,517,335                                       735,351                              560,914                              10,691,772                                        Special Revenue Funds 271  Traffic Impact 770,162                                            3,616                                   ‐                                          773,778                                             Special Revenue Funds 280  Park Dedication 18,701,746                                       114,915                              8,338                                  18,808,323                                        Special Revenue Funds 281  Tree Fund 78,284                                              294                                      ‐                                          78,578                                               Debt Service Funds 365  Public Facilities Corp (278,850)                                            ‐                                          1,500                                  (280,350)                                            Capital Project Funds 420  Capital Improvement Fund 20,801,912                                        ‐                                          970,721                              19,831,191                                        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 4,844,591                                         166,848                              418,077                              4,593,362                                          Enterprise Funds 560  Blackberry Farm 748,671                                            44,828                                98,600                                694,899                                             Enterprise Funds 570  Sports Center 1,887,262                                         75,815                                220,128                              1,742,950                                          Enterprise Funds 580  Recreation Program 2,970,518                                         105,046                              208,017                              2,867,547                                          Internal Service Funds 610  Innovation & Technology 1,542,927                                         851,172                              300,484                              2,093,615                                          Internal Service Funds 620  Workersʹ Compensation 2,128,237                                         249,356                              24,086                                2,353,507                                          Internal Service Funds 630  Vehicle/Equip Replacement 2,409,151                                         349,883                              94,210                                2,664,823                                          Internal Service Funds 641  Compensated Absence/LTD 721,022                                            11,275                                165,251                              567,046                                             Internal Service Funds 642  Retiree Medical (120,499)                                            ‐                                           ‐                                          (120,499)                                            Total 243,142,095$                                   16,245,982$                      21,360,861$                      238,027,215$                                    * For reporting purposes, this fund rolls up/combines with Fund 420 Printed January 28, 2025 For more information on funds, please see cupertino.org/fund‐structure