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06 - June 26, 2025 - Monthly Treasurer’s Report for May 2025 1 CITY COUNCIL INFORMATIONAL MEMORANDUM Date: June 26, 2025 To: Cupertino City Council From: Jonathan Orozco, Finance Manager Re: Receive the Monthly Treasurer's Report for May 2025 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. 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 2 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 May 2025. The report is as of June 24, 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 $209.6 million, increasing by $3.2 million from the prior month. Receipts were $8.2 million, disbursements were $(5.1) million, and journal adjustments were $86,452 for the month. The City's total ending cash and investment balance was $311.7 million, increasing by $1.3 million from the prior month. Receipts were $10.4 million, disbursements were $(9.2) million, and journal adjustments were $104,547 for the month. Journal adjustments included the following: • Parks and Recreation transactions imported from Active Network into New World • Investment Earnings & Interest Allocations • Worker’s Compensation Journals • LAIF Interest • Accela Transaction GL reclassification Fund Balance/Net Position 3 The City's General Fund ending fund balance was $148.5 million, increasing by $3.0 million from the prior month due to revenues of $8.4 million and expenditures of $5.4 million. The City's total ending fund balance was $244.0 million, increasing by $1.5 million from the prior month due to revenues of $11.2 million and expenditures of $9.6 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: __________________ Tina Kapoor Interim City Manager Attachments: A – Report of City-wide Receipts, Disbursements, and Cash Balances May 2025 B – Report of City-wide Fund Balances/Net Position May 2025 May 2025 Report of City‐wide Receipts, Disbursements, and Cash Balances Cash and Investments  Beginning Balance  Ending Balance  Fund Type Fund Number/Name as of April 30, 2025 Receipts Disbursements Journal Adjustments as of May 31, 2025 General Fund 100  General Fund 206,405,882                                    8,216,200               (5,142,374)                86,452                                 209,566,161                                     General Fund 130  Investment Fund 0                                                       ‐                               ‐                                 ‐                                          0                                                       Special Revenue Funds 210  Storm Drain Improvement 147,797                                            ‐                               ‐                                13                                        147,809                                            Special Revenue Funds 215  Storm Drain AB1600 2,196,156                                        16,993                     ‐                                191                                      2,213,339                                         Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 685,533                                           1,208                      (108,850)                   60                                        577,950                                            Special Revenue Funds 260  CDBG 345,797                                           80,021                    (96,938)                     50                                        328,930                                            Special Revenue Funds 261  HCD Loan Rehab 230,372                                            ‐                               ‐                                 ‐                                          230,372                                            Special Revenue Funds 265  BMR Housing 5,123,952                                         ‐                              (102,272)                   445                                      5,022,125                                         Special Revenue Funds 270  Transportation Fund 14,188,259                                      207,071                  (366,446)                   1,231                                   14,030,114                                       Special Revenue Funds 271  Traffic Impact 889,347                                           13,262                     ‐                                77                                        902,686                                            Special Revenue Funds 280  Park Dedication 20,407,516                                      255,000                  (35,736)                     1,771                                   20,628,551                                       Special Revenue Funds 281  Tree Fund 78,620                                             2,052                       ‐                                7                                          80,679                                              Debt Service Funds 365  Public Facilities Corp 2,394,350                                         ‐                              (2,395,600)                 ‐                                          (1,250)                                              Capital Project Funds 420  Capital Improvement Fund 32,877,840                                      1,448,201               (108,203)                   (290,354)                             33,927,484                                       Capital Project Funds 427  Stevens Creek Corridor Park 157,338                                            ‐                               ‐                                 ‐                                          157,338                                            Capital Project Funds 429  Capital Reserve* 6,707,212                                         ‐                               ‐                                 ‐                                          6,707,212                                         Enterprise Funds 520  Resource Recovery 5,404,843                                        140,397                  (172,000)                   469                                      5,373,710                                         Enterprise Funds 560  Blackberry Farm 904,177                                           1,771                      (60,347)                     79,965                                 925,567                                            Enterprise Funds 570  Sports Center 864,354                                            ‐                              (90,585)                     72,660                                 846,429                                            Enterprise Funds 580  Recreation Program 3,289,284                                        15,318                    (118,050)                   154,440                               3,340,993                                         Internal Service Funds 610  Innovation & Technology 3,126,954                                        13,718                    (232,555)                   271                                      2,908,389                                         Internal Service Funds 620  Workersʹ Compensation 3,769,449                                         ‐                              (6,804)                       (3,323)                                 3,759,322                                         Internal Service Funds 630  Vehicle/Equip Replacement 1,245,756                                         ‐                              (76,870)                     108                                      1,168,994                                         Internal Service Funds 641  Compensated Absence/LTD 138,705                                            ‐                              8,476                         12                                        147,193                                            Internal Service Funds 642  Retiree Medical (1,100,504)                                       ‐                              (143,527)                    ‐                                          (1,244,031)                                       Total 310,478,990$                                  10,411,212$           (9,248,682)$              104,547$                             311,746,066$                                   * For reporting purposes, this fund rolls up/combines with Fund 420 Printed June 24, 2025 For more information on funds, please see cupertino.org/fund‐structure May 2025 Report of City‐wide Fund Balances/Net Position Beginning Fund Balance Ending Fund Balance Fund Type Fund Number/Name as of April 30, 2025 Revenues Expenditures as of May 31, 2025 General Fund 100  General Fund 145,494,970                                     8,352,116                           5,385,083                           148,462,003                                      General Fund 130  Investment Fund 229,425                                             ‐                                           ‐                                          229,425                                             Special Revenue Funds 210  Storm Drain Improvement 2,123,538                                         13                                        ‐                                          2,123,551                                          Special Revenue Funds 215  Storm Drain AB1600 1,885,989                                         17,184                                 ‐                                          1,903,173                                          Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drai 1,097,463                                         60                                       108,850                              988,672                                             Special Revenue Funds 260  CDBG 1,686,822                                         79,007                                96,938                                1,668,891                                          Special Revenue Funds 261  HCD Loan Rehab 222,016                                             ‐                                           ‐                                          222,016                                             Special Revenue Funds 265  BMR Housing 9,927,492                                         445                                     102,272                              9,825,665                                          Special Revenue Funds 270  Transportation Fund 10,607,430                                       232,384                              377,551                              10,462,263                                        Special Revenue Funds 271  Traffic Impact 772,543                                            13,339                                 ‐                                          785,882                                             Special Revenue Funds 280  Park Dedication 18,741,364                                       256,771                              35,736                                18,962,399                                        Special Revenue Funds 281  Tree Fund 79,518                                              2,059                                   ‐                                          81,577                                               Debt Service Funds 365  Public Facilities Corp 1,750                                                 ‐                                          2,395,600                           (2,393,850)                                         Capital Project Funds 420  Capital Improvement Fund 18,556,875                                       1,465,297                           398,557                              19,623,615                                        Capital Project Funds 427  Stevens Creek Corridor Park 157,343                                             ‐                                           ‐                                          157,343                                             Capital Project Funds 429  Capital Reserve* 13,744,638                                       290,354                               ‐                                          14,034,992                                        Enterprise Funds 520  Resource Recovery 4,794,088                                         140,866                              172,000                              4,762,955                                          Enterprise Funds 560  Blackberry Farm 740,528                                            83,228                                60,347                                763,408                                             Enterprise Funds 570  Sports Center 1,932,021                                         78,735                                90,074                                1,920,683                                          Enterprise Funds 580  Recreation Program 3,039,915                                         132,209                              118,014                              3,054,111                                          Internal Service Funds 610  Innovation & Technology 1,564,589                                         2,471                                  209,296                              1,357,765                                          Internal Service Funds 620  Workersʹ Compensation 2,139,171                                         324                                     10,451                                2,129,044                                          Internal Service Funds 630  Vehicle/Equip Replacement 2,406,590                                         108                                     76,870                                2,329,828                                          Internal Service Funds 641  Compensated Absence/LTD 712,973                                            16,448                                7,960                                  721,461                                             Internal Service Funds 642  Retiree Medical (141,033)                                            ‐                                           ‐                                          (141,033)                                            Total 242,518,019$                                   11,163,416$                      9,645,597$                        244,035,838$                                    * For reporting purposes, this fund rolls up/combines with Fund 42 Printed June 24, 2025 For more information on funds, please see cupertino.org/fund‐structure