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CC Resolution No. 23-128 approving Budget Modification No. 2324-314, increasing appropriations by $464,384 and revenues by $540,141RESOLUTION NO. 23-128 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2023-24 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 21th day of November 2023, by the following vote: Members of the City Council AYES: Wei, Mohan, Chao, Fruen NOES: Moore ABSENT: None ABSTAIN: None SIGNED: ________ Hung Wei, Mayor City of Cupertino ________________________ Date ATTEST: ___________________________ Kirsten Squarcia, City Clerk ________________________ Date 11/30/23 11/30/23 Exhibit A Appropriation Amendment by Fund Appropriation Amendment Revenue Amendment Fund Balance (Use of) General Fund $262,836 $326,233 $63,397 Special Revenue Funds $(12,033) $467 $12,500 Capital Projects Funds $467 $- $(467) Enterprise Funds $132,000 $- $(132,000) Internal Service Funds $156,871 $137,684 $(19,187) Total Appropriation Amendment All Funds $540,141 $464,384 $(75,757) This Financial Report is interactive. Click on a chart to learn more. Background On June 6, 2023, the City Council adopted the Fiscal Year (FY) 2023-24 Adopted Budget, a $121.8 million spending plan funded by $110.2 million in revenue and $11.6 million in fund balance. The FY 2023-24 Adopted Budget reflected a $4.0 million increase from the FY 2023-24 Proposed Budget, mainly due to the Capital Improvement Program. As a result of budget adjustments, encumbrances, and carryovers, the amended budget at the end of the first quarter is $204.7 million. Amended Budget 2023-24 Adopted Budget 2023-24 Amended Budget Q1 Fiscal Year 0.0 100.0M 200.0M 50.0M 150.0M Dollars Public Works Community Development Capital Projects Law Enforcement Parks and Recreation Non Departmental Administrative Services Innovation & Technology Administration Council and Commissions Flow of Funds Chart (in Millions) CITY OF CUPERTINO FY 2023-24 First Quarter Financial Report The following is the First Quarter Financial Report, submitted by the Administrative Services Department for the period of July 1, 2023 to September 30, 2023 for Fiscal Year (FY) 2023-24. It has been prepared to inform the City Council, City leadership and the public of the City’s fiscal status. 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. -$13,529,092.80 Revenues Less Expenses in Sep 2023 -$14M -$12M -$10M -$8M -$6M -$4M -$2M $0 Sep 2020 Sep 2021 Sep 2022 Sep 2023 $29,163,659.20 Revenues Less Expenses in Jun 2023 $0 $5M $10M $15M $20M $25M $30M Jun 2021 Jun 2022 Jun 2023 General Fund Revenues vs Expenditures First Quarter General Fund Revenues vs Expenses Year End September 2020-21 Actual 2020-21 Amended Budget Q1 June 2021-22 Actual September 2022-23 Actual 2022-23 Amended Budget Q1 2023-24 Amended Budge Q1 Fiscal Year 0.0 100.0M 25.0M 50.0M 75.0M 125.0M Dollars Revenues Expenses General Fund Revenue and Expenditure Trends As of September 30, 2023, General Fund revenues are at $12.1 million, which is 11% 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 $25.6 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 - First Quarter vs Budget Data Updated Nov 14, 2023, 1:05 PM 9/2020 9/2021 9/2022 9/2023 10.74% In Revenues of $112,763,401.00 Budgeted through Sep 2023 General Fund Expenses - First Quarter vs Budget Data Updated Nov 14, 2023, 1:05 PM 9/2020 9/2021 9/2022 9/2023 21.06% In Expenses of $121,777,754.00 Budgeted through Sep 2023 As of the first quarter, overall revenue is $12.1 million, which is $5.5 million, or 31%, lower than the same time last year. This is primarily due to decreases in sales tax, intergovernmental, and transfers in. As of first quarter, overall expenditures are $25.6 million, which is $5.7 million, or 18%, lower than the same time last year. This is primarily due to decreases in transfers as part of an expenditure reduction strategy. $12,113,167.19 Revenues in Sep 2023 $0 $20M $40M $60M $80M $100M $120M Sep 2020 Sep 2021 Sep 2022 Sep 2023 $25,642,259.99 Expenses in Sep 2023 $0 $20M $40M $60M $80M $100M Sep 2020 Sep 2021 Sep 2022 Sep 2023 $12,113,167.19 Revenues in Sep 2023 Sales Tax Charges for ... Other Use of Money Licenses and... Transient Oc... $25,642,259.99 Expenses in Sep 2023 Contract Ser... Transfers Ou... Other Employee Ben... Cost Allocat... Employee Com... General Fund Classification of Fund Balance The City’s General Fund ended FY 2021-22 with $110.2 million in total fund balance. Staff anticipates the General Fund will end FY 2022-23 with $139.3 million in fund balance, an increase of $29.1 million from the prior year due to FY 2022-23 ending with revenues higher than expenditures. As of the first quarter, staff anticipates the General Fund will end FY 2023-24 with $135.4 million in fund balance. To date, the City’s outside auditors have not completed their review of the City’s financials. 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. General Fund Revenues - First Quarter vs Year End General Fund Expenses - First Quarter vs Year End General Fund Revenues by Type General Fund Expenses by Type 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 $540,141 in new appropriations, funded by $464,384 in revenues and $75,757 in one-time fund balance. City of Cupertino, California Cupertino City Hall 10300 Torre Avenue Cupertino, CA 95014-3202 View the City Council Meeting Agenda View the City's Budgets View the City's Financial Transparency Portal Powered by OpenGov