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07 - July 24, 2025 - Monthly Treasurer’s Report for June 2025 1 CITY COUNCIL INFORMATIONAL MEMORANDUM Date: July 24, 2025 To: Cupertino City Council From: Jonathan Orozco, Finance Manager Re: Receive the Monthly Treasurer's Report for June 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 June 2025. The report is as of July 21, 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 $209.0 million, decreasing by $965,386 from the prior month. Receipts were $5.9 million, disbursements were $(6.8) million, and journal adjustments were $(68,523) for the month. The City's total ending cash and investment balance was $312.1 million, increasing by $56,262 from the prior month. Receipts were $7.9 million, disbursements were $(8.3) million, and journal adjustments were $448,876 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 • Accela Transaction GL reclassification • Customer refunds for overpayments 3 Fund Balance/Net Position The City's General Fund ending fund balance was $140.5 million, decreasing by $0.8 million from the prior month due to revenues of $9.2 million and expenditures of $10.0 million. The City's total ending fund balance was $238.9 million, decreasing by $0.3 million from the prior month due to revenues of $13.1 million and expenditures of $13.4 million. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact. City Work Program Item/Description None. City Council Goal Fiscal Strategy 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 June 2025 B – Report of City-wide Fund Balances/Net Position June 2025 June 2025 Report of City‐wide Receipts, Disbursements, and Cash Balances Cash and Investments  Beginning Balance  Ending Balance  Fund Type Fund Number/Name as of May 31, 2025 Receipts Disbursements Journal Adjustments as of June 30, 2025 General Fund 100  General Fund 209,556,770 5,912,058               (6,808,921) (68,523) 208,591,383  General Fund 130  Investment Fund 0 ‐ ‐ ‐ 0  Special Revenue Funds 210  Storm Drain Improvement 147,809 ‐ ‐ 15 147,824  Special Revenue Funds 215  Storm Drain AB1600 2,213,339 11,286 ‐ 222 2,224,847  Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 577,950 588,822 (73,014) (152,170) 941,588  Special Revenue Funds 260  CDBG 328,930 ‐ (10,369) 56 318,617  Special Revenue Funds 261  HCD Loan Rehab 230,372 ‐ ‐ ‐ 230,372  Special Revenue Funds 265  BMR Housing 5,022,125 ‐ (22,859) (25,616) 4,973,650  Special Revenue Funds 270  Transportation Fund 14,030,114 327,436 (110,562) (335,778) 13,911,210  Special Revenue Funds 271  Traffic Impact 902,686 ‐ ‐ 90 902,777  Special Revenue Funds 280  Park Dedication 20,628,551 45,000 (17,868) 2,066 20,657,749  Special Revenue Funds 281  Tree Fund 80,679 1,028 ‐ 8 81,715  Debt Service Funds 365  Public Facilities Corp (1,250) ‐ ‐ ‐ (1,250)  Capital Project Funds 420  Capital Improvement Fund 33,927,484 817,096 (58,464) ‐ 34,686,116  Capital Project Funds 427  Stevens Creek Corridor Park 157,338 ‐ ‐ ‐ 157,338  Capital Project Funds 429  Capital Reserve*6,997,566 ‐ ‐ ‐ 6,997,566  Enterprise Funds 520  Resource Recovery 5,373,710 193,482 (179,256) (112,341) 5,275,595  Enterprise Funds 560  Blackberry Farm 924,447 3,395 (49,772) 39,612 917,682  Enterprise Funds 570  Sports Center 845,510 ‐ (75,625) (54,902) 714,983  Enterprise Funds 580  Recreation Program 3,340,240 3,217 (259,122) 38,324 3,122,659  Internal Service Funds 610  Innovation & Technology 2,908,389 ‐ (370,701) 804,134 3,341,821  Internal Service Funds 620  Workersʹ Compensation 3,759,322 ‐ (5,502) 101,619 3,855,440  Internal Service Funds 630  Vehicle/Equip Replacement 1,168,994 14,001 (125,349) 313,289 1,370,936  Internal Service Funds 641  Compensated Absence/LTD 147,193 ‐ 178 (97,068) 50,303  Internal Service Funds 642  Retiree Medical (1,244,031) ‐ (142,228) (4,162) (1,390,420)  Total 312,024,238$ 7,916,822$             (8,309,435)$              448,876$ 312,080,500$  * For reporting purposes, this fund rolls up/combines with Fund 420 Printed July 21, 2025 For more information on funds, please see cupertino.org/fund‐structure Attachment A June 2025 Report of City‐wide Fund Balances/Net Position Beginning Fund Balance Ending Fund Balance Fund Type Fund Number/Name as of May 31, 2025 Revenues Expenditures as of June 30, 2025 General Fund 100  General Fund 141,284,542  9,200,673 10,015,924 140,469,291   General Fund 130  Investment Fund 229,425  ‐  ‐  229,425   Special Revenue Funds 210  Storm Drain Improvement 2,123,146  15  ‐  2,123,161   Special Revenue Funds 215  Storm Drain AB1600 1,887,722  11,508 ‐  1,899,229   Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drai 1,111,343  591,050 225,894 1,476,499   Special Revenue Funds 260  CDBG 1,675,913  184  10,369 1,665,728   Special Revenue Funds 261  HCD Loan Rehab 222,016  ‐  ‐  222,016   Special Revenue Funds 265  BMR Housing 9,474,919  503  48,978 9,426,444   Special Revenue Funds 270  Transportation Fund 10,441,507  448,264 886,512 10,003,260   Special Revenue Funds 271  Traffic Impact 783,446  90  ‐  783,536   Special Revenue Funds 280  Park Dedication 18,906,488  47,066 47,648 18,905,906   Special Revenue Funds 281  Tree Fund 80,338  1,036 ‐  81,374   Debt Service Funds 365  Public Facilities Corp (2,393,850)  ‐  ‐  (2,393,850)   Capital Project Funds 420  Capital Improvement Fund 22,089,296  800,000 190,851 22,698,445   Capital Project Funds 427  Stevens Creek Corridor Park 157,343  ‐  ‐  157,343   Capital Project Funds 429  Capital Reserve*14,034,992  ‐  ‐  14,034,992   Enterprise Funds 520  Resource Recovery 4,772,736  194,021 325,224 4,641,533   Enterprise Funds 560  Blackberry Farm 756,217  89,385 116,047 729,555   Enterprise Funds 570  Sports Center 1,898,255  80,716 233,201 1,745,770   Enterprise Funds 580  Recreation Program 2,989,146  301,674 441,897 2,848,922   Internal Service Funds 610  Innovation & Technology 1,625,204  840,886 437,477 2,028,612   Internal Service Funds 620  Workersʹ Compensation 2,130,099  117,619 18,510 2,229,208   Internal Service Funds 630  Vehicle/Equip Replacement 2,405,603  353,152 156,824 2,601,931   Internal Service Funds 641  Compensated Absence/LTD 720,813  8,132 105,022 623,923   Internal Service Funds 642  Retiree Medical (143,527)  ‐  146,389 (289,916)   Total 239,263,133$ 13,085,972$ 13,406,768$ 238,942,338$  * For reporting purposes, this fund rolls up/combines with Fund 42 Printed July 21, 2025 For more information on funds, please see cupertino.org/fund‐structure Attachment B