CC Resolution No. 16-058 Amending the Operating Budget for Fiscal Year 2015-16 by Ratifying the Adequacy of Estimated Amended Revenues to the General and Special Funds to Cover Amended Appropriated Monies and Appropriating Monies TherefromRESOLUTION NO. 16-058
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2015-16 BY
RATIFYING THE ADEQUACY OF ESTIMATED AMENDED REVENUES TO THE
GENERAL AND SPECIAL FUNDS TO COVER AMENDED APPROPRIATED
MONIES AND APPROPRIATING MONIES THEREFROM FOR SPECIFIED
ACTIVITIES AND ACCOUNTS
WHEREAS, the orderly administration of municipal government is dependent
on the establishment of a sound fiscal policy of maintaining a proper ratio of
expenditures within anticipated revenues and available monies; and
WHEREAS, the extent of any project or program and the degree of its
accomplishment, as well as the efficiency of performing assigned duties and
responsibilities, is likewise dependent on the monies made available for that purpose;
and
WHEREAS, the City Manager has submitted his estimates of amended
anticipated revenues, has determined that estimated amended revenues are adequate to
cover amended appropriations, and has recommended the allocation of monies for
specified program activities
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby ratify
that the attached anticipated amended resources are to be received in the General and
Special Funds listed in the attachment during fiscal year 2015-16 and that such resources
are sufficient to cover the attached amended appropriations.
BE IT FURTHER RESOLVED that there is appropriated from the General and
special funds the sum of money set forth as amended expenditures for those funds, to
be used for the purposes as expressed and estimated in the report before the City
Council.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 61h day of June 2016, by the following vote:
Resolution NO. 16-058
Page2
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Members of the City Council
Chang, Vaidhyanathan, Paul, Wong
None
Sinks
None
APPROVED:
~J±
Grace Schmidt, City Clerk
~ • CUPERTINO
FY2015-16
THIRD QUARTER REPORT
The following is the Thi rd Quarter Financial Report for the per i od of July 20 15-March 2016 for the 2015 -2016 Fiscal
Year. It has been prepared to i nform t he City Counci l , City leadership and the pub l ic of the City 's financial status
at the third quarter point of th i s fisca l year. The report provides revenue and expenditure summaries and
recommends ad just ments to City bu dg et nee ded sin ce th e adopt i on of t he Fin al Bu dget i n June 2015.
BACKGROUND
On June 2, 2015, the City Council adopted the FY 2015-16 Budget, a $118 .6 million spending plan for the City of
Cupertino. On November 17, 2015, Council received an update on the City's spending plan as part of the City
Manager's First Quarter Financial Report, which revised the budget to account for encumbrances and carryover
expenditure appropriations from FY 2014-15 . Council approved $9,486,754 in additional expenditures in the first three
quarters of the fiscal year resulting in an amended budget of $161 ,104,619.
Proposed B udget thru the Third Qu a rter I Amended B udget FY 2015 -161 Flow of Fun d s Cha rt (i n M illions )
~--=·
PrcpoMd~ 11118 L,....,~$1 1 0 1
~117..5
1 ~-·· ... fc...a __ ....
GENERAL FUND UPDATE
Amlnded Budget 11611
EtUfPriA Funes $1 1 0
Ge n eral Fund Revenue , Expe n dit ures a nd Fu n d Ba lance
$120.0
$100.0
$80.0
$60.0
~
~ $40.0
E
$20.0
$-
$(20 .0 )
$(40 .0)
•Revenue
•Ex pen d itures
•Fund Ba lance
,-
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I
I
I I
I I
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I
I
9 M o nth
Ac tuals
$36.4
$33 .1
$3.3
A111 e nd ed Yea r End
Bud get Actuals
FY 2012-13
$51.l $54.7
$49.9 $44.7
$1.3 $9.9
------------~ ~ ----
9 Month Am e nded
Actu al s Budge t
FY 20 13-14
$49.0 $95.9
$4 8.7 $78.8
$0.3 $17.1
Yea r En d
Ac tu als
$73.9
$64.4
$9.S
1
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9 Month Amended Yea r End 9 Month
Ac t uals Budget Actuals Actu als
FY 2014-15
$66.2 $88.4 $83.5 $48.4
$63.3 $98.8 $86.2 $45.2
$2.9 $(10.4) $(2.7) $3.2
Fin al Budget
FY 2015-16
$68 .2
$67.6
$0.6
HJtrwt~.ssa
Ritcra.t.:in:S1l.01
~AllN$ $80
Amended
Budge t
$68.2
$85.l
$(1 6.9)
1As part of th e Fina l Bud get a new rese rve poli cy was ado pted that a uthori zed th e tr a ns fer of th e any excess fund balance over $5 00,000 to th e Ca pita l Reser ve. Thi s is
th e primary reason for th e large u se o f fund bala nce in th e fin al budget. The additi onal $10 .45 in fun d bal an ce as of third quarter is to p rov id e a fund so urce for pri or
yea r encumbra nces, carryovers a nd mid-year budget adjustme nts .
GENERAL FUND UPDATE (continued)
General Fund Classification of Fund Balance
Year End
Actuals Final Budget 1st Qtr Mid-Year Projection
CLASSIFICATION 2014-15 2015 -16 Estimates Estimates 2015-16
Total Non Spendable
Total Restricted
Total Assigned/Other
Total UnAssigned
1.10
0.76
26.54
15.31
1.10
0.76
23.83
10.89
1.10
0.76
31 .50
0.50
1.10
0.76
31.50
0.50
1.10
0.76
27 .50
1.95
TOTAL FUND BALANCE 41.85 36.58 33.86 33.86 31.27
General Fund Revenue and Expenditure Trends Are General Fund Revenues and Expenditures on Trend?
High Low "FY 15-16
90% I
As of March 31, 2016, General Fund expenditures are
$45.2 million; this represents 56% of the bud geted
appropriations. Expenditures at the third quarter point
of the prior three years were between 73% and 76% of
the final actual expenditures, placing this year below
the range. This is due to large special projects that have
yet to be completed, salary savings due to vacancies
and unspent dollars related to the employee housing
loan option that has not been used. General Fund
revenues are at $48.2 million; this represents 70% of
the budgeted revenue. Revenues at the mid-year point
of the prior three years were between 66% and 79%,
placing this year within the range.
80%
70%
1~--
~I -
--T 79% -· -------~~;g -
--Jr-Jg~ -_------1-----
60 %
56%
50%
40% r
30% t--------
20%
10%
0%
Revenue Expenditures
RECOMMENDED THIRD QUARTER ADJUSTMENTS BY FUND
Fund Expenditure Revenue Fund Description
Balance
General 24,000 (24,000) Traffic Calming along Rodngues Ave. and Pac1f1ca Dr.
General 30,000 (30,000) City Hall sprinkler system
Special Re venue (217,406) 217,406 Close out of McClellan Sidewalk Improvement CIP
Speci al Revenue (6,732) 6,732 Close out of Mary Ave Pedestrian Improvements CIP
Capital Projects (4SO,OOO ) 450,000 Close out o f Linda Vista Pond Repair CIP I
; ~c_a~pi_ta_IP_ro~je_c_ts ____ (~14~0~,o~oo~) _____ ~1~40~,00==-0 -C=lo~s~eo~u~t ~of~M~o~n~ta~V2is~ta~P~re~sc~ho~o~l ~Pla~y~A~re~a ~C~IP __
Capital Projects (1 04,500) 104,500 Close out of Porta l Cricket Cage Replacement CIP _ ___ _J
Capita l Projects (269 ) 269 Close out of McClellan Barn Renovation Evaluatio n CIP
k •pital Proje~ (1,536 )_ 1,5 36 Close out of Solar Assessment CIP _ _ __ _ _l
·Capita l Projects (118,481) 118,481 Close out of So lar Assessment Seivice Cente r CIP
(•pita! Projects (448,840) 448,840 Close out of Library Room Expansion CIP
. Capital Projects (9,940) 9,940 Close out of Civic Center Parking Structure CIP
Capital Projects (2,466,990) 2,466,990 Close out of Civic Center Master Plan CI P
Enterprise (8,642) ___ 8~,6_4_2 _close out of Fenced Dog Park CIP
~ (45,200) 45,200 Close out of Wi lson Park Safety Net CIP
1
Enterprise (131 ,550) 131,550 Close out of Wi lson Bleacher Shade Canopy CIP
Enterprise (89,829) 89,829 Close out of Quinlan Inte ri or Upgrades CJP
Enterprise (179 ,700) 179,700 Close out of Wilson Building Landscape CIP
p nternal Seivice 200,000 (200,000) Unanticpated cashout costs
Internal Service 50,000 _SO~,o_oo _____ T_ra_ns_fe_r_in_fr_o_m_th_e_C_ity,_M_a_n-'ag~e_r C_o_n _t in~g -'--en-'-cy,_f-'-un..cd_fo-'--r---'-th---'e__,_p_ur_ch_a_se_o_f -'--co_m__,_p_ut_er_e_,qu-'ip~mc.:eccnt'-
\Total All Funds (4,115,615) 5~0,_000 __ 4~,1_6~5,_615 _______ _ ------------
SUMMARY
The Third Quarter Financial Report shows the City is well positioned to end the year within the Amended Budget. The
majority of adjustments at third quarter total $4, 115 ,615 and mostly account for completed or discontinued Capital
Projects.
Lastly , we encourage you to go to www .cupertino .org/opengov a great site that puts the power of the City's financial
data in your hands . This site allows you take actual historical revenues and e x penditures and current year budget data
and create several different graphical representations. You can even share your charts on social media or with friends_
and colleagues via email.