C I T Y O F S A N T A C L A R A
A N N U A L B U D G E T
TABLE O F CONTENTS
Page No.
i
CITY MANAGER'S TRANSMITTAL LETTER ................................................................ I
BUDGET PRINCIPLES FOR 2006- 2007........................................................................ XVI
AWARD – OPERATING BUDGET................................................................................. XVII
ROSTER OF COUNCIL AND COMMISSION MEMBERS .............................................. XVIII
DIRECTORY OF CITY OFFICIALS................................................................................ XIX
CITY OF SANTA CLARA LOCATION MAP................................................................... XX
CITY OF SANTA CLARA ORGANIZATION CHART ..................................................... XXI
CITY PROFILE............................................................................................................... XXII
EXHIBIT I - WHERE THE CITY GETS ITS MONEY AND WHAT
YOUR MONEY BUYS........................................................................................... XXV
EXHIBIT II - OUTSIDE GROUP FUNDING .................................................................... XXVI
GENERAL INFORMATION AND SUMMARIES
Narrative on Budgetary Account, Graphs and Charts ............................................ 1
Revenues and Appropriations Graphs ................................................................... 2
General Operating Funds Revenue and Appropriation Graphs.............................. 3
General Fund Revenues - Ten Year Trend Line Charts......................................... 4
Operating Budget Revenue Estimates and Fee Impacts........................................ 6
2006- 2007 and 2005- 06 Budget - Summary of Estimated Resources.................... 7
2006- 2007 and 2005- 06 Budget - Summary of Appropriations .............................. 8
Three Year Trend by Revenue and Appropriation Categories................................ 9
2006- 07 Budget by Fund and Prior Years’ Appropriations/ Expenditures................ 10
Revenue Summary – All Funds FY 2003- 04 Through FY 2006- 07 ........................ 12
Estimated Fund Balances ...................................................................................... 14
Estimated Resources - By Fund ............................................................................ 16
Appropriations - By Program and Department ....................................................... 32
Personnel Allocation - By Department and Fund ................................................... 44
Basic Salary Plans................................................................................................. 50
APPROPRIATION DETAIL
CITY COUNCIL.............................................................................................................. 53
CITY CLERK.................................................................................................................. 61
CITY ATTORNEY........................................................................................................... 69
CITY MANAGER............................................................................................................ 77
City Manager ......................................................................................................... 81
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General Administration .......................................................................................... 85
INFORMATION TECHNOLOGY .................................................................................... 91
Applications Systems............................................................................................. 95
Web Services......................................................................................................... 98
Network Computer Support.................................................................................... 101
Contract Technology Support ................................................................................ 104
Telecommunication Services ................................................................................. 107
HUMAN RESOURCES................................................................................................... 111
Benefits, Compensation and Services ................................................................... 115
Recruitment, Selection and Classification .............................................................. 119
FINANCE ....................................................................................................................... 123
Administrative Services.......................................................................................... 127
Financial Services.................................................................................................. 130
Accounting Services .............................................................................................. 135
Municipal Services................................................................................................. 140
Debt Service .......................................................................................................... 147
PARKS AND RECREATION.......................................................................................... 149
Parks and Playgrounds.......................................................................................... 153
Recreation ............................................................................................................. 157
Special Recreation Programs - Senior Nutrition Program ...................................... 164
Cemetery............................................................................................................... 166
LIBRARY ....................................................................................................................... 171
Administration........................................................................................................ 175
Youth & Extension Services................................................................................... 178
Adult Services........................................................................................................ 182
Collection Services ................................................................................................ 187
Support Services ................................................................................................... 190
PLANNING AND INSPECTION ..................................................................................... 193
Planning................................................................................................................. 197
Building Inspection................................................................................................. 201
Housing and Community Services ......................................................................... 205
PUBLIC WORKS/ ENGINEERING
Engineering .......................................................................................................... 209
Support Services ............................................................................................. 213
Design ............................................................................................................. 217
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Land & Property Development......................................................................... 221
Field Services.................................................................................................. 225
Traffic .............................................................................................................. 229
Purchasing ........................................................................................................... 237
Building Maintenance.......................................................................................... 244
STREET/ AUTOMOTIVE SERVICES.............................................................................. 251
Street Maintenance ......................................................................................... 256
Storm Drain ..................................................................................................... 262
Parkways & Boulevards................................................................................... 266
Solid Waste ..................................................................................................... 270
Urban Renewal Parking District ....................................................................... 276
Convention Center Maintenance District.......................................................... 279
Automotive Services ........................................................................................... 282
Automotive Services ........................................................................................ 285
Equipment Pool Revolving............................................................................... 288
POLICE ........................................................................................................................ 291
Field Operations .................................................................................................... 296
Investigations......................................................................................................... 302
Administrative Services.......................................................................................... 305
Technical Services................................................................................................. 311
Communications Equipment Acquisition ................................................................ 314
FIRE…… ....................................................................................................................... 317
Protection .............................................................................................................. 321
Prevention ............................................................................................................. 325
Training.................................................................................................................. 329
Hazardous Materials .............................................................................................. 332
Incremental EMS Costs ......................................................................................... 335
ELECTRIC UTILITY ....................................................................................................... 339
Administrative Services.......................................................................................... 344
Customer Service & Marketing .............................................................................. 347
Resource Management.......................................................................................... 350
Energy Distribution ................................................................................................ 353
WATER AND SEWER UTILITIES.................................................................................. 357
Water Engineering ................................................................................................. 362
Water Construction, Maintenance & Operations .................................................... 366
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Sewer .................................................................................................................... 370
Solar Construction & Maintenance......................................................................... 375
Recycled Water Construction & Maintenance ........................................................ 378
HUD PROGRAMS
Community Development Block Grant Allocation ................................................... 381
Home Program....................................................................................................... 382
REDEVELOPMENT AGENCY ....................................................................................... 383
SPORTS AND OPEN SPACE AUTHORITY .................................................................. 385
SANTA CLARA CONVENTION CENTER & CONVENTION/ VISITOR'S BUREAU
Convention Center................................................................................................. 387
Convention/ Visitor's Bureau................................................................................... 391
ADDITIONAL INFORMATION
Budgets and Accounting Summary ........................................................................ 397
Budget Calendar.................................................................................................... 401
REGIONAL COMPARISON
Per Capita Revenue Comparison........................................................................... 403
CAPITAL IMPROVEMENT PROJECT BUDGET
2006- 2007 Capital Improvement Project ( CIP) Budget .......................................... 407
Index by Capital Project Theme ............................................................................. 408
FIVE- YEAR FINANCIAL PLAN
2007/ 8 – 2011/ 12 Financial Plan............................................................................ 411
APPROPRIATIONS LIMIT
Appropriations Limit for Fiscal Year 2006- 2007 ..................................................... 449
GLOSSARY ................................................................................................................... 455
ACRONYMS .................................................................................................................. 461
INDEX ........................................................................................................................ 463
THE CITY OF SANTA CLARA
JENNIFER SPARACINO
CITY MANAGER
CALIFORNIA
CITY HALL
1500 WARBURTON AVE.
SANTA CLARA, CA 95050
( 408) 615- 2210
FAX ( 408) 241- 6771
June 6, 2006
Honorable Mayor and City Council
City of Santa Clara
Santa Clara, CA 95050
Members of the City Council:
Presented herewith is the adopted Annual Budget for the City of Santa Clara for 2006- 07. The Total City
Budget of $ 491.5 million for operations and capital improvement projects represents a 9.3% increase
compared to the fiscal year 2005- 06 adopted budget. The Operating Budget of $ 458.6 million for all funds,
including the General Operating Fund and Utilities, increased by $ 41.2 million or 9.9% over the prior fiscal
year. This is primarily due to increases in the cost of energy in the Electric Utility and employee salary and
benefit increases per labor contracts, as well as the including funding for the actuarial cost of retiree health
care. Lastly, the added costs of operating the City’s new expanded Senior Center, Silicon Valley Animal
Control Authority ( SVACA) Animal Shelter and additional parks are included, as well as resource and
production costs in the Water and Water Recycling Utilities.
The General Operating Fund budget for FY 2006- 07 is $ 135.3 million, a 7.7% increase over the 2005-
06 budget of $ 125.6 million. Due to decisive actions by the City and moderate economic recovery, the
General Fund budget was adopted as a balanced budget without the use of emergency reserves, for
the first time in several years. The 2006- 07 budget is also projected to have a small surplus of $ 1.14
million in the General Fund, due in part to decisive City actions:
• Holding 34 positions being frozen overall; one position deleted ( 32 of the frozen positions are in
the General Operating Fund);
• Increases in fees, rates and charges to bring them closer to the actual cost of providing the
services;
• Continued gradual improvements in property tax, sales tax and TOT ( hotel/ motel) taxes.
Despite the surplus in the adopted budget for 2006- 07, the Five Year Plan projections show that the
City expects to return to deficits in the General Operating Fund in fiscal years 2007- 08 through 2011- 12.
The annual deficits range from $ 355,000 in 2006- 07 to $ 5.8 million in 2011- 12. The reasons are as
follows: while revenues are projected to increase by 2.3% per year, expenditures are projected to
increase by 3.2% annually. Increased expenses include:
• Miscellaneous Employee groups labor contracts, the full impact of which will begin in fiscal year
2007- 08,
• Increased Public Safety costs due to labor contracts,
• Funding for retiree health care on an actuarial basis, and
• Underwriting the City’s cost for the new regional Animal Control Shelter opening in the fall, 2006,
as well as costs of operating an expanded Senior Center, opening early 2007.
The City will continue to look for additional opportunities to reorganize department services for more
efficient and effective ways to operate that will reduce costs without significantly impacting citizen
service levels. Additional revenue increases are being explored, capital projects will continue to be
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
II
deferred or eliminated where possible ( especially if they have General Fund operational cost impacts),
and some modest use of remaining reserves may occur.
Balancing the City budget will take a sustained effort over several years, especially because staff and
the City Council have already reduced expenditures and modified services as the organization has
responded to the financial challenges over the past five years. There is also a need to replenish
emergency reserves that have been used to balance the General Fund budget in the last few years.
The remainder of this letter will address details of key functional areas of the City.
Table 1 below summarizes the appropriations by fund categories:
• General Operating Funds: provides funding for most City operating departments, including
public safety, public works, planning, parks and recreation, libraries, streets and administrative
departments.
• Enterprise Funds: provides funding for the utilities ( Electric, Water and Sewer, Solid Waste)
• Capital Improvement Funds: provides funding for the City’s capital projects across all funds
except agency ( such as RDA and SOSA)
• Special Revenue Funds: funds such as Gas Tax Fund or HUD Program Fund, which provide
repositories for selected revenues as allowed by law, or funding for special activities as provided
by law or policy by the City of Santa Clara
• Internal Service Funds: provides funding for Communication Infrastructure, Automotive Fleet and
other city operations, wherein the departments are charged on a pro- rata share of their use of
the communication and fleet services which the City manages internally.
Table 1
Total Budget by Fund Category
Adopted Adopted Increase Percent
Fund 2006- 2007 2005- 2006 ( Decrease) Change
General Operating Funds ( w/ Debt) $ 135,269,329 $ 125,602,421 $ 9,666,908 7.70%
Special Revenue Funds 1,508,858 1,434,809 74,049 5.16%
Enterprise Funds 315,648,113 284,033,350 31,614,763 11.13%
Internal Service Funds 6,202,528 6,336,547 ( 134,019) - 2.12%
Operating Budget 458,628,828 417,407,127 41,221,701 9.88%
Capital Projects Funds 32,910,365 32,417,969 492,396 1.52%
TOTAL CITY BUDGET $ 491,539,193 $ 449,825,096 $ 41,714,097 9.27%
Consistent with the City Charter, the adopted budget is a balanced budget. The appropriations adopted
for the departments are consistent with City Council principles and priorities and the City Manager's
budget guidelines. In addition, the adopted budget was based on the budget principles approved by
City Council. Guiding the development of the overall City Budget was a strong consciousness of the
financial challenges, combined with seeking to maintain core, affordable services/ infrastructure. A
concentrated effort has been made to leverage opportunities for economic development that will
improve the City’s long- term financial outlook. Staff has carefully analyzed all department budget
requests for their programs, taking into account the fiscal year projected resources, level of service
desired by Santa Clara citizens and businesses, Council Principles and Priorities, and the City's Vision.
Vision:
SANTA CLARA: Superb, affordable services in a caring community that values our rich history
and nurtures technologies that build the future.
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
II I
In April 2005, the City Council adopted the Council priority and supporting principles for fiscal years
2005- 06 and 2006- 07.
Council Priority:
The City Council Priority is to focus on successful completion of existing City projects,
postpone new City projects and proposals, and operate within Council adopted budget
principles and priorities, with the goal of guiding the City successfully through the
economic downturn.
Supporting Principles:
• Maintain Superb/ Affordable Core Services,
• Foster Public Trust/ Demonstrate Leadership,
• Work Efficiently with Focus on Fiscal Responsibility,
• Support & Celebrate Community/ Volunteer Partnerships
• Pro- active Economic Development/ Fiscal Partnerships.
The City Manager, with the assistance of City department heads, has developed implementation plans
for achieving these goals and the related objectives. Quarterly status reports of accomplishments are
prepared and presented to the City Council as several action plans related to each goal are completed.
ECONOMIC AND FINANCIAL OVERVIEW
The Bay Area economy, and in particular the Silicon Valley region, has turned the corner and is working
its way out of the most severe economic
downturn to affect the area. While there are
positive signs indicating that the bottom may
have been reached and passed, the recovery
of the regional economy is expected to be
longer and flatter than in previous recovery
periods. In the case of the City of Santa Clara,
projected 2005- 06 revenues of $ 128.8 million
in the General Operating Fund lag the high of
2000- 01 of $ 140.5 million and are just ahead
of the first year of the recession 2001- 02, with
General Operating Fund revenues of $ 125.4
million. General Fund revenues adopted for
2006- 07 are $ 135.3 million, showing
additional recovery.
The volatility in revenues is caused by sales tax and Transient Occupancy Tax ( TOT), both affected by
the swings in the economy. These two sources of revenues comprise 36% to 37% of the revenues of
the General Operating Fund and are the principal reason for the large swings up and down, rising and
falling with the economy of the past several years.
In the General Operating Fund, the City is currently projecting fiscal year- end 2005- 06 revenues and
expenditures to result in a $ 1.2 million surplus, due primarily from the early repayment of a $ 1.8 million
VLF loan by the State. ( Of the $ 1.8 million, $ 1 million of the payment came earlier than the State had
informed the City.) Revenues and other sources of funds are projected at $ 128.8 million, up $ 3.2
million from the adopted budget of $ 125.6 million, or 2.5% above budget. The variances have been in
General Operating Fund
Revenues
100
105
110
115
120
125
130
135
140
145
1999- 00 2000- 01 2001- 02 2002- 03 2003- 04 2004- 05 2005- 06 2006- 07
Year
$ Millions
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
IV
the range of 2% to 2.5% for the past five years. The major sources of increased revenues are property
taxes, sales taxes, TOT, and documentary transfer tax ( real estate transfer taxes). The major source of
reduced revenues is interest earnings, down
$ 0.9 million from budget.
The graph illustrates the trend of the past
seven years and adopted for 2006- 07. For
2006- 07 expenditures increase to $ 135.3
million due primarily to salary and benefit
increases approved for all bargaining units.
In fiscal year 2006- 07, the Governor’s budget
resulted in State takeaways of $ 3.6 million as
part of the ERAF ( Education Revenue
Augmentation Fund). The $ 3.6 million
baseline ERAF that is taken away from the
City has been in place since 1992- 93, and it
will continue indefinitely. It is also included in
the Five Year Plan in the General Operating Fund budget. These reallocations of local government
revenues by the State of California have affected major sources of revenue: property taxes.
For the City as a whole in 2006- 07, the Operating Budget ( all funds except Capital, RDA and SOSA) is
expected to be $ 458.6 million, up 9.9% over last year’s budgeted level. These estimates are based on
the most recent State, regional and local economic data. A listing of the basic assumptions underlying
the major revenue projections is presented on page six in the General Information and Summaries
section. The revenue and other resources included in this budget have been estimated based on the
most recent economic and financial data available, and the City expects that it will realize these
resources to cover the budgeted appropriations. Other than those on- going State budget takeaways
already identified in the Governor’s budget proposal, the City’s adopted budget assumes no additional
adverse legislation from the State due to the passage of Proposition 1A in the November 2004 election.
Adopted appropriations for salaries and benefits across all funds for fiscal year 2006- 07 reflect an
increase of 8.7%, compared to the fiscal year 2005- 06 budget. This reflects the increases due to two
primary factors: increased salary costs and benefits: actuarial funding for retiree health care for all
employees at various levels depending on the bargaining group, and increased pension costs for
Miscellaneous employees due to the improvement of the retirement benefit from a “ 2%@ 55” pension
benefit to “ 2.7%@ 55” pension benefit. Other operating appropriations for fiscal year 2006- 07 are up
1.3% compared to the prior fiscal year.
General government capital appropriations, detailed in the separately issued CIP budget book, are
based on the need for essential new facilities and/ or maintenance, refurbishment and replacement of
existing City facilities. These expenditures are generally one- time in nature and as such, past
expenditure levels are not necessarily a good indicator of future ( short- term) expenditure trends. The
City/ RDA/ SOSA 2006- 07 adopted CIP budget of $ 47.0 million, which includes utilities and general
government projects and programs, decreased by 19.3% or approximately $ 11.2 million from last year.
These include: various infrastructure improvement projects ( street replacement, street resurfacing),
several parks and recreation projects ( Central Park Lake, Agnews Historic Park Cemetery, War
Memorial Playground), and extension of the San Tomas- Aquino Creek Trail through Reach 3, partial
funding for relocation of public safety dispatch personnel, commencement of a multi- year replacement
program for electric utility substations, replacement of water and sewer pumping equipment, adopted
construction of a photovoltaic system over a City- owned parking structure and a variety of water/ sewer
and streets programs.
General Fund
Expenditures
10 0
10 5
110
115
12 0
12 5
13 0
13 5
14 0
14 5
19 9 9-
0 0
20 0 0-
0 1
2 00 1-
0 2
2 00 2-
0 3
2 0 0 3 -
0 4
2 0 0 4 -
0 5
2 0 0 5-
0 6
2 0 0 6 -
0 7
Year
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
V
BUDGET THEMES AND SIGNIFICANT ISSUES AND PROGRAMS
The budget appropriations were organized and analyzed according to theme categories that ensure
uniformity of purpose and balance in terms of program emphasis and resource allocation decisions. The
theme categories are Special Programs and Public Facilities; Community Information and Technology;
Land Use/ Neighborhood Issues; Economic Development; and Santa Clara Utilities, all of which are
consistent with Council goals. Selected items and related issues, programs, and/ or projects, which are
significant in the 2006- 07 adopted budget under the theme categories are presented below.
Public Facilities and Special Programs
The adopted budget includes appropriations for various significant programs and public facilities
projects designed to enhance City public facilities and promote service efficiency and effectiveness. In
recent years the City has been upgrading or adding new facilities to better serve its citizens, and
several new City facilities have recently been completed that have been well underway before the
economic decline. The fiscal year 2006- 07 operating budget includes projected costs for operating and
maintaining these facilities.
Public Facilities
Parks & Recreation: Funding of $ 315 thousand is included to operate the new Senior Citizen Center,
expected to open in early 2007. Increased costs of operating the Live Oak Park, opened in April 2005,
were absorbed in the 2005- 06 budget. Increased costs of operating Thamien Park, opened in April
2006, are included in the adopted budget. Offsetting these costs to some extent is increased net
income of approximately $ 135,000 budgeted for expected increases at the City’s golf course. Of this
figure, $ 90,300 is due to increased greens fees; the balance is due to improving rounds and other
income. The increased golf course revenues will partially offset the Golf Course debt service payment,
reducing the General Operating Fund subsidy. The golf course is still one of the lowest- priced
municipal courses in the area. Increased fees of approximately $ 131,125 are budgeted for parks and
recreation programs at all facilities, including at the new Senior Center, and increased fees of $ 40,000
are budgeted at the Cemetery.
General Government: The 2006- 07 budget includes continued funding for Leadership Santa Clara, the
City Newspaper and The Annual Report/ Calendar. Funding is also included for the state- mandated
ethics training as a result of the approval of AB1234 Mandatory Ethics Training for Officials ( City
Council, Boards and Commissions, other appointed officials). The budget also includes funding of
$ 1,045,000 in support of Silicon Valley Animal Control Authority programs. This is an increase of
$ 155,000 over 2005- 06.
Library Programs: By the Spring of 2006, the new Central Park Library had been open two full years.
Total patronage has increased significantly, and the number of items checked out has increased by
500,000 items per year since opening. The 2006- 07 budget reflects the experience of operating the
library for this period of time. Funding for maintenance and utilities costs has increased to reflect the
expense of operations. To partially offset the increased costs associated with operating the new Library,
the Mission Library will continue to remain closed on Saturdays and the Central Park Library will
continue to be open three hours later for one morning a week and to be closed three hours earlier one
evening per week. Central Park Library remains open 64 hours per week, among the highest in the
County, even with the continuing slight reduction in hours. Patron usage was reviewed to ensure that
the Library would remain open at peak times to serve the community. Lastly, funding for the North of
Bayshore Branch Library continues to be placed on hold until the City has sufficient resources to
operate and maintain the facility.
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
V I
Fire Station Replacements: The City is phasing in the rebuilding of its Fire Stations over several years
as follows:
• Fire Station 6, adjacent to Rivermark and serving the Bayshore North area, opened in August 2005.
This Fire Station was fully funded using RDA funds in the 2003- 04 CIP Budget and was completed
under budget.
• The budgeting for Fire Stations 3 and 4 is combined into a single Capital Improvement Project, and
was fully funded over three years: 2003- 04, 2004- 05 and 2005- 06. These Fire Stations will be built
entirely with cash financing from the City’s Capital Projects Reserve.
• The contract for demolition and construction of Fire Station 3 was awarded in March 2005.
Demolition and construction began in June 2005 and was completed in May 2006, with a grand
opening held in June, 2006. This station replaces the current 45- year old structure.
• Fire Station 4 is to be rebuilt in the existing location, also replacing a 45- year old structure. It has
been designed simultaneously with Fire Station 3 and utilizes the same building design, thus holding
design costs to a minimum. Currently, Fire Station 4 is scheduled to start construction in September
2006.
Service Impacts: Service reductions included in 2005- 06 will be continued into 2006- 07:
• Continued hiring freeze, a total of 16.25 positions frozen, and an additional 17.98 positions newly
frozen for the fiscal year 2006- 07. This is a total of 34.23 FTE positions, and the savings are
approximately $ 3.4 million per year. In addition, 0.67 position is eliminated for a total of 34.90 FTE
positions and annual savings of $ 3.5 million.
• Planned vacancies starting in late 2006 to early 2007 due to retirements will result in significant
review of department services and organizations.
• Elimination of supplemental street sweeping during the year, while maintaining the standard street
sweeping schedule.
• Sidewalk repairs may take longer to schedule, but the service continues. Santa Clara remains one
of the few cities to perform this service free of charge to its citizens.
Special Programs
In order to reduce expenses, some annual events were recommended to continue on an every- other year
basis, and two were discontinued. Programs recommended to continue on an annual basis include the
Holiday Tree Lighting Ceremony, Art and Wine Festival, Fourth of July All- City Picnic, Employee Service
Award Luncheon, Concerts in the Park and Arbor Day.
Community Information and Technology
Over the last couple of years the City has been undergoing a period of major technological
improvement and innovation in its programs and processes. Included in the budget are several new
projects totaling $ 2.8 million for various technology projects in the City. Some of the significant systems
issues and changes in appropriations in this budget include the following:
Information Technology Department ( IT)
Approximately $ 950 thousand is budgeted for the maintenance and enhancement of the City’s computer
network infrastructure. These projects will help ensure the stability and performance of the City’s
network system for many years. Over a four to five year cycle, desktop computers, network equipment
and cabling, and application servers will be replaced. The phased replacements are essential City
infrastructure maintenance projects, necessary to sustain the City’s IT systems.
Financial Human Resources Management ( FHRMS) and Utility Management Information ( UMIS):
The initial system conversion and upgrade were completed in 2003- 2006 on time and on budget. The
adopted budget includes $ 458 thousand in funding to continue the City’s PeopleSoft Finance/ Human
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
V II
Resource Management System and to plan for transition to a system management and maintenance
role.
Additional funding of $ 740 thousand is included in the 2006- 07 CIP Budget to continue the
implementation and conversion to a new Utility Management Information System ( UMIS). The core
components of UMIS are now operational and future funding will allow for system enhancements and
increased functionality for the individual utilities to improve customer service and increase efficiency.
Land Use/ Neighborhood Issues
The annual budget includes substantial appropriations in this theme category whose primary thrust is to
protect the integrity of the City’s neighborhoods, provide affordable housing, and preserve the character
of Santa Clara historical neighborhoods. The following highlights and describes those City of Santa
Clara neighborhoods and projects impacted under this category.
Housing Programs
The City is currently in the first year of a new 2005- 2010 Consolidated Plan for using federal CDBG and
HOME funds. Last year’s activity report to HUD included a complete summary of performance for the
five- year period of 2000- 2005. The report stated that 4,193 households received some form of housing
assistance over the duration of the 2000- 2005 Consolidated Plan. This number takes into account all
affordable housing activities assisted by either federal CDBG and HOME funds and the Redevelopment
Agency Affordable Housing Fund. This includes housing service programs, fair housing investigations,
the mortgage assistance program, below market rate program, housing rehabilitation, and housing
development projects. On average, approximately 838 households per year are assisted in some form
or another by the City and Agency affordable housing programs. These programs are administered
either directly by the City and Agency, or through non- profit service agencies such as Neighborhood
Housing Services Silicon Valley, Catholic Charities, Council on Aging, EHC Life Builders, Next Door,
Project Sentinel, and Silicon Valley Independent Living Center.
In total, the CIP budget includes a total of $ 9.3 million for below- market and other RDA projects. The
below market program is budgeted for $ 3.4 million in funding for various below market rate purchase
and rental programs. This is the fifth consecutive year in which City Council has approved the
additional 10% set- aside for affordable housing, above the 20% mandatory set- aside. These programs
assist qualified buyers or renters in acquiring affordable housing. There is funding for seven distinct
projects which range from a low of $ 98,000 for Camino Townhomes of Santa Clara, to mid- sized
projects like Cortez Drive Condo Conversion and El Matador Condo Conversion, as well as the Hope
Rehabilitation Site Development, to the $ 1.3 million for the Underwriter Lab town home project, for a
total of 40 below- market rate units. In addition, the CIP budget includes $ 3.5 million for the Bill Wilson
Center to purchase/ rehabilitate a 20- unit complex for youth aging out of foster care and staff
counselors, $ 750 thousand for the Martin Property Senior Apartments, $ 500 thousand for the First- Time
Home Buyers Financing Program.
Economic Development
The services, programs and projects within this theme category are consistent with Council goals to
encourage enhancement of the “ Entertainment Theme” in the Convention Center/ Theme Park area and
to plan for economic development to retain/ attract new businesses. The annual budget proposes
appropriations for such services, programs and projects that enhance the economic capacity of the City,
including the following:
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
VI II
North of Bayshore
The North of Bayshore area of the City of Santa Clara has been a major center of development activity
over the past several years. The adopted budget includes $ 1.42 million in RDA funds to extend the San
Tomas Aquino/ Saratoga Creek Trail. Design for the third portion from Scott Blvd to Monroe Street is
underway. Future budgets will include additional funding requests as the trail is extended.
Traffic Mitigation
Traffic mitigation projects include $ 400 thousand for traffic signal enhancements and improvements
such as sidewalks, curb ramps and disabled access improvements at various locations. In addition,
$ 150 thousand is included to continue the design and installation of traffic pre- emptors at various
strategic intersections throughout the City.
Santa Clara Utilities
Santa Clara Electric Utility d. b. a. Silicon Valley Power ( SVP)
The adopted budget for the total utility includes operating revenues of approximately $ 244.9 million and
total resources of $ 280.3 million. It also includes operating expenses of $ 263.1 million and capital
expenses of $ 17.2 million. The operating budget has increased 12.7% due primarily to increased costs
of $ 26.2 million for fuel and $ 1.7 million in contribution in lieu payments. If these costs are considered,
the other increases in the Electric Utility Fund are approximately $ 1.7 million, or 0.7% over the 2005- 06
adopted budget.
An analysis of the impact of Donald Von Raesfeld Power Plant ( DVR) shows that the plant saves the
City approximately $ 16.2 million in increased energy costs. In other words, if the City had not built the
plant, but instead was forced to buy energy in the open market, that energy would cost the City an
additional $ 16.2 million above the current costs budgeted for 2006- 07. In addition, it is important to
note that DVR gives the City a reliable source of energy at a known cost during times of crisis and
energy shortages. Other benefits include operational flexibility and cost flexibility - the flexibility to use
the least costly source of energy available in the marketplace.
Electric Utility Public Benefits Program ( PBP): The State of California mandates the collection of a
public benefit charge equal to 2.85% of customers electric bill that is dedicated and used for public
benefit programs such as: energy efficiency, energy renewable resources, research, development,
demonstration, and low income assistance programs. Funds are typically budgeted in both the CIP and
operating budgets to fund various programs that meet the criteria of the Public Benefits Program. The
adopted 2006- 07 budget includes a funding of $ 6.3 million in the operating budget to cover programs
such as home air conditioner recycling and rebate, business solar photovoltaic rebate, refrigerator
recycling, low- income refrigerator replacement, residential appliance rebates, residential solar,
residential insulation rebates, rate assistance programs and business energy audits.
Water and Sewer Utilities
The budget includes requisite appropriations in the Water and Sewer utilities to improve water quality
and water supply reliability for Santa Clara residents and customers and to minimize treated sewage
effluent discharge into the South Bay. Selected major initiatives in the budget include the following:
$ 365 thousand in additional funding to retrofit the City’s existing water storage tanks to meet the current
seismic safety standards. This is the seventh year of a multi- year program to retrofit or replace the
City’s storage tanks. Work Order Projects total $ 851 thousand for services such as the construction/
relocation of water mains and appurtenances; construction of water treatment systems and the
replacement of obsolete pumps; and the installation of water mains, hydrants and services in new
developments. Funding of $ 1.2 million is adopted to cover work on water mains not funded from
developer contributions in the work order projects.
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
IX
The Sewer Utility CIP Budget includes a request of $ 2.0 million to fund the City’s share of capital
improvements at the San Jose/ Santa Clara Water Pollution Control Plant. This is one of a series of
planned requests to be brought to Council over the next several years as the Water Pollution Control
Plant undergoes a major capital improvement program. The Water and Sewer utilities are now paying
the General Operating Fund their full cost allocation, according to the study conducted for the City by
DMG Maximus, Inc.
ANALYSIS OF ESTIMATED RESOURCES AND APPROPRIATIONS
The following summary, Table 2, outlines the estimated revenues and appropriations by major
categories, and is followed by an analysis of major City of Santa Clara revenue and expenditure
categories.
Table 2
TOTAL BUDGET
ESTIMATED RESOURCES AND APPROPRIATION CATEGORIES
Adopted Adopted Increase Percent
ESTIMATED RESOURCES 2006- 07 2005- 06 ( Decrease) Change
Property Tax $ 24,164,651 $ 20,115,000 $ 4,049,651 20.13%
Sales Tax 40,110,000 37,053,000 3,057,000 8.25%
Transient Occupancy Tax 9,450,000 7,904,000 1,546,000 19.56%
Other Taxes 3,812,000 3,227,000 585,000 18.13%
Licenses and Permits 3,164,000 3,132,200 31,800 1.02%
Fines and Penalties 1,472,000 1,307,730 164,270 12.56%
Interest 21,930,102 23,452,505 ( 1,522,403) - 6.49%
Other Use of Money and Property 3,058,000 11,643,200 ( 8,585,200) - 73.74%
Revenue from Other Agencies 7,042,949 7,280,227 ( 237,278) - 3.26%
Charges for Current Services 308,427,634 274,518,559 33,909,075 12.35%
Contribution In- Lieu 13,862,342 12,165,295 1,697,047 13.95%
Other Revenue/ Debt Proceeds 444,540 437,540 7,000 1.60%
Transfers From ( To) Reserves 31,653,826 29,943,198 1,710,628 5.71%
Interfund Transfer 13,699,576 4,596,036 9,103,540 198.07%
Estimated Beginning Balance 9,247,573 13,049,606 ( 3,802,033) - 29.14%
Total Estimated Resources $ 491,539,193 $ 449,825,096 $ 41,714,097 9.27%
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
X
Adopted Adopted Increase Percent
APPROPRIATIONS 2006- 07 2005- 06 ( Decrease) Change
Salaries and Benefits $ 134,625,063 $ 123,805,161 $ 10,819,902 8.74%
Other Operating Expenditures 47,273,184 46,666,053 607,131 1.30%
Resource and Production 215,306,613 188,411,635 26,894,978 14.27%
Contribution In- lieu & Franchise Fees 14,396,565 12,570,095 1,826,470 14.53%
Interfund Services 17,089,463 16,475,498 613,965 3.73%
Debt Service 29,937,940 29,478,685 459,255 1.56%
Operating Budget 458,628,828 417,407,127 41,221,701 9.88%
Capital Improvement Projects Budget 32,910,365 32,417,969 492,396 1.52%
Total Appropriations $ 491,539,193 $ 449,825,096 $ 41,714,097 9.27%
ESTIMATED RESOURCES
Resources available to pay for the expenditures in any given fund include the estimated revenue to be
received in that fund for the current year plus the beginning balance of that fund, transfers from other funds,
and the use of beginning capital projects balances. Property tax, sales tax, transient occupancy tax, interest
income and contribution in- lieu are major general government revenues received in the General Operating
Fund. These revenues provide funding for general government services such as public safety, public works,
parks and recreation, library, and administration. A brief analysis of these major revenue categories of the
General Operating Fund follows:
Property Tax
Property tax revenue for fiscal year 2006- 07 is projected at $ 24.16 million, an increase of 20.13% over
the 2005- 06 adopted budget of $ 20.12 million. Major factors contributing to this are: 1) reduction in
ERAF take- aways of $ 2.2 million in General Operating Fund property taxes to the State Educational
Revenue Augmentation Fund, and 2) a 4% increase in taxes due to assessed values increasing.
Sales Tax
Sales tax is a significant revenue source and accounts for approximately 30% of the City general
operating fund resources. Sales tax revenue for fiscal year 2006- 07 is projected at $ 40.11 million, an
increase of 8.25% over 2005- 06 adopted budget of $ 37.1 million. This figure reflects an improvement in
the economy, although lagging the recovery in the rest of the San Francisco Bay Area and its double-digit
growth in sales tax receipts. It is expected that business spending, which is down significantly from
its peak years, will be a key contributor to this moderate recovery.
Transient Occupancy Tax ( TOT)
Transient Occupancy Tax ( TOT) is calculated as a percentage of City hotel/ motel room charges. The
City's current TOT rate is 9.5%. TOT revenue is budgeted at $ 9.45 million for fiscal year 2006- 07, an
increase of 19.56% over adopted 2005- 06 budget of $ 7.9 million. This increase is the direct result of
the economic recovery and its impact on business travel. This revenue stream is more volatile than
sales taxes due to the double effect of the economy on both room rates and occupancy levels. When
TOT rises, it rises quickly and accelerates; when TOT falls, it falls dramatically, as well.
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
X I
Interest Income
Total interest income is projected to decrease by $ 1.5 million decrease when compared to the adopted
budget for 2005- 06 of $ 23.5 million. The decrease in General Operating Fund interest income can be
attributed to a smaller investment portfolio caused by lower reserve levels and a decrease in portfolio
return in 2006- 07. The City maximizes investment return by pooling its available cash for investment
purposes. The City's investment portfolio is managed in accordance with the Investment Policy
approved by Council each year. Interest earnings are apportioned among participating funds according
to their average monthly cash and investment balances.
Rents, Leases and Transfers In
The revenues from Rents and Leases is posted to two account classifications, depending on the nature
of the transaction and the required accounting for it under Generally Accepted Accounting Principles
( GAAP):
• If the revenues flow directly to the General Operating Fund from an outside legal entity, this is
budgeted as Rents and Leases. In 2006- 07, this is budgeted at $ 2.6 million.
• If the revenues flow to the General Operating Fund by operation of an inter- agency agreement,
such as with the Redevelopment Agency of the City, this is budgeted in Transfers In. In 2006-
07, this is budgeted at $ 10.1 million.
• Please note: the total includes only lease revenues; excluded are other transfers, which do not
qualify as lease revenues.
Rents and Leases Amount
Hyatt Hotel $ 1,179,500
TECHMART 1,000,000
Great America Theme Park ( Parking) 94,582
Other Leases 369,918
Sub- total Leases $ 2,644,000
From Transfers In
The Irvine Project ( TIC) $ 3,639,000
Great America Theme Park 5,300,000
David's Restaurant 80,600
Interland Apartments 1,179,540
Sub- total from Transfers In $ 10,199,140
Total Rents, Leases and
Leases from “ Transfers In” $ 12,843.140
Total direct Rents and Leases and indirect revenues from rents and leases budgeted for 2006- 07 are
$ 12.8 million. This is an increase of $ 1.7 million over 2005- 06, due to the increased lease payment
from Great America Theme Park, and the payoff of the loans for this development transaction.
Contribution In- lieu of Taxes ( CLT)
In accordance with the City Charter Sec. 1320, the City's utility funds pay a maximum of five percent
( 5%) of their gross revenue as CLT to the General Operating Fund. The Electric, Water, Sewer and
Water Recycling Utilities are the four enterprise funds that pay CLT. For fiscal year 2006- 07, CLT is
projected to be $ 13.9 million, up $ 1.7 million, or 13.95% compared to 2005- 06 adopted budget. Most of
this figure reflects the increased revenues in the Electric Utility resulting from the rate increase
approved in December 2005, a portion of those revenues which flows to the General Operating Fund in
accord with the City Charter.
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
X II
APPROPRIATIONS
The significant appropriation changes in the fiscal year 2006- 07 operating budget compared to 2005- 06
are in the following categories:
• Salaries, Wages and Benefits
• Resource and Production
• Contribution In- lieu and Franchise Fees
Salaries, Wages and Benefits
The expenditure category for salaries, wages and benefits across all funds in the 2006- 07 budget
increased by 8.7% over the 2005- 06 adopted budget. In the General Operating Fund, this category
increased by 10.2%. The increase is due primarily to two factors: Increased salaries and benefits of
$ 10.8 million across all bargaining units, which figure also includes the enhanced pension multiplier for
the Miscellaneous units starting in January 2007. This figure also includes the increase for actuarial
funding of retiree health care for 2006- 07 and forward, as required by accounting pronouncements.
The salary and benefit figure also reflects the continuation of the savings realized of $ 3.4 million per
year in the General Operating Fund for freezing approximately 34 FTE positions, 32 of which are in the
General Operating Fund, and deleting 0.67 FTE in the General Operating Fund. The total value in
salaries and benefits of the 34.90 FTE’s is estimated at $ 3.5 million annually for all budgetary units.
These savings are also assumed in the Five Year Plan as submitted to City Council.
Position Changes for Fiscal Year 2006- 07: The total full time benefited employee count is 1,012.25.
The Summary of Regular Personnel Allocation by Department on page 44 provides more detail of the
positions included in the 2006- 07 Annual Budget. One position was deleted.
Resource and Production
The budget for this item for 2006- 07 is $ 215.3 million, up 14.3% from the adopted 2005- 06 budget of
$ 188.4 million. The primary reason for this is the increased cost of energy for the electric utility, which
is estimated at $ 26.2 million.
Contribution In- Lieu and Franchise Fees
The budget for this item for 2006- 07 is $ 14.4 million, up $ 1.8 million, or 14.5% from the adopted budget
of $ 12.6 million. The primary reason for this is the increased contribution in lieu of $ 1.7 million due to
the revenues that will be generated as a result of the fee increases for the Electric Utility approved in
December 2005.
ENTERPRISE FUND RATES
Some rates in the City Enterprise activities will increase this year; others will not. Increases in the City
Enterprise activities planned for the 2006- 07 fiscal year are consistent with contractual cost of living
adjustments for private contractors, implementation of mandated programs, and planned service cost
recovery adjustments.
For the Electric Utility, since 1993, the City has not had any rate increases, unless state- mandated. In
December 2005, the City Council approved a rate increase to take effect in two stages: 5% in January
2006 and 5% in July 2006, a compounded total of 10.25%. The City’s electric utility rates are still 10%
to 45% below those for PG& E, and vary across customer type: commercial and industrial rates are
10% to 25% below PG& E, residential rates are 45% below those of PG& E.
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
XI II
There will be selective increases in water, sewer and solid waste charges in 2006- 07 as summarized
below. In light of current and future proposed wholesale water increases, recent reductions in total
water sales and long term capital projects for infrastructure replacement, increases of 7% for water and
12% to 16% for recycled water ( depending on type of service) are included in the adopted budget for
2006- 07. At a public hearing held on May 16, 2006, City Council approved the water rate increases.
The budget also includes a sewer rate increase of 6% approved in May 2005 for fiscal year 2006- 07.
The Solid Waste Utility has been increasing fees to reduce subsidies over the past three years and has
realized increased revenues from several programs: Clean Green, Recycling and the Clean Up
Campaign. Total increased revenues over the past three years have reduced the subsidy from the
General Operating Fund from $ 1.3 million to approximately $ 340 thousand, a reduction of $ 960
thousand. This has acted to make these programs more self- sustaining and less dependent on the
subsidy from the General Operating Fund. The charge for Clean Green is scheduled to increase by
$ 2.00 per month to $ 6.55 per month. The Annual Clean Up Campaign is scheduled to remain the same
for 2006- 07. Garbage collection will increase 2.5% ($ 0.20 per month Single Family rate) due to a cost
of living adjustment increase to Mission Trails Waste System for garbage collection and an increase to
BFI/ IDC for disposal costs at the Newby Island Landfill. Household Hazardous Waste Charge and
Residential Curbside Recycling fees will remain the same, with no increases. A public hearing was held
on June 6, 2006, to adopt the solid waste fee increases.
GENERAL CONTINGENCY RESERVE POLICY
The General Contingency Reserve is the surplus ( when surpluses are available) resulting from General
Operating Fund revenues received in excess of expenditures during preceding fiscal years. There are
two main reasons for such excess:
( a) Revenues higher than anticipated such as from higher than anticipated sales volume in the City
resulting in more sales tax and,
( b) Expenditures lower than anticipated such as from departmental efficiencies.
Each year after the accounting records are closed, if there is an operating surplus, the Council
approves the transfer of General Operating Fund surplus to the General Contingency Reserve Fund.
The funds are then available for working capital emergencies and future capital project needs.
In 1985- 86, the City Council established a policy regarding use of the City's General Contingency
Reserve, under which two separate reserves were established. The first reserve, the Working Capital
Reserve, is set aside for emergency financial crisis or disaster situations. The reserve target is equal to
the cost of the City’s General Operating Fund operations for three months ( 90- day working capital
reserve). The second reserve, the Capital Projects Reserve, earmarks funds for a five- year capital
spending program. Projects identified in the Five- Year Financial Plan are critical to maintaining basic
City infrastructure and quality facilities. Staff prepared the 2007- 08 through 2011- 12 Financial Plan and
presented it to Council at the May 16, 2006 study session. It projects that the Working Capital Reserves
will be drawn down to $ 1.7 million by 2011- 12. It also forecasts that the Capital Projects Reserve fund
will not meet the minimum $ 5 million requirement by the end of fiscal year 2007- 08.
Reserve for Working Capital
The persistent weakness in the local economy means $ 20.5 million in Working Capital ( Emergency)
Reserves were used over the three years from 2002- 03 through 2004- 05 to balance the budget.
Because of one- time payments from the state, the General Operating Fund will show a slight surplus of
$ 1.2 million in 2005- 06. At the end of fiscal year 2005- 06 the Working Capital Reserves balance is
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2006- 07
XI V
estimated to increase from $ 13.8 million to $ 15.0 million. The fiscal year 2006- 07 adopted budget
includes the addition to reserves of $ 1.14 million dependent on City Council approval to begin to
replenish the reserves with the 2005- 06 small surplus. For the end of 2006- 07 the Emergency Reserve
is estimated to be at $ 16.15 million. The Five- Year Financial Plan projects that the Working Capital
reserve will be drawn down to $ 1.7 million by the end of fiscal year 2011- 12. The primary reason for
this is that salaries and benefits are projected to grow faster than revenues and the City returns to the
problem of solving a structural deficit. It is imperative that the City develop additional measures to
maintain the City’s fiscal integrity. Staff is recommending a pro- active approach combined of six
elements:
1. Increasing Revenues: fee increases and other staff measures to achieve cost recovery for City
services, other increases due to economic development ( lease revenues, etc.)
2. Re- organization: the City is anticipating that upwards of 30 individuals will retire in FY 2006- 07
with more retirements in 2007- 08 and the City must take this opportunity to examine the
business processes of the city and capture some of these savings. Due to vacation and other
pay- offs, and the fact that retirements will not start until January 2007, initial savings will be
minimal; however, this gives the City time to plan around the rehiring or elimination of these
positions, which will be a major adjustment going forward.
3. Capital Projects: delay for 2006- 07 or defer where possible. Plan for increasing capital outlay for
infrastructure replacement, in response to pent- up demand for capital maintenance.
4. Research a tax increase for a future ballot or other fee adjustments, in the event that the City is
unable to cure the structural deficit using the three remedies above. The first opportunity for this
is the 2007- 08 ballot.
5. Economic Development: leverage the opportunities available to work with the City’s Electric
Utility to attract new businesses and retain existing business and industry. Continue to work with
the Chamber of Commerce & Convention - Visitors Bureau to enhance visitor economy.
6. Reserves: Continued use of reserves on an annual basis places the City in a difficult position if
an emergency should result. This could also result in a bond rating downgrade and deterioration
of the City’s reputation in the marketplace. A strategic plan for replacement of General Fund
Reserves is a Council and management priority.
Reserve for Capital Projects
The 2006- 07 Annual Budget includes funding for appropriations in the amount of $ 4.2 million from the
General Contingency Reserve Fund for various capital projects. The reserve is projected to decline
from $ 13.7 million at June 30, 2006 to $ 9.5 million at June 30, 2007.
Land Sale Reserve
In fiscal year 1996- 97, the City Council established the General Contingency Reserve for Non-
Expendable Land Sale Proceeds ( Land Sale Reserve). The net proceeds from the sale of City owned
land are held in the Land Sale Reserve account and interest earned on the funds is available to be
appropriated for General Operating Fund operating expenditures. The balance of the Land Sale
Reserve at June 30, 2006 is projected to be $ 14.7 million. Interest earnings of $ 600-$ 650 thousand
from this reserve is used to help balance the 2006- 07 General Operating Fund budget.
Building Inspection Reserve
In 1999- 00, Council approved the establishment of a Building Inspection Reserve to account for surplus
funds generated from user fees in the Planning Department’s Building Inspection Division. Funds
accumulated in the Building Inspection Reserve are to be used to fund additional services or projects
directly related to the Building Inspection Division, and can only be used when Building Inspection
revenues are not sufficient to cover related costs. The Adopted 2006- 07 CIP budget reflects the use of
$ 378 thousand in Building Inspection Reserve funds. The balance in this fund at June 30, 2006 is
estimated to be $ 3.5 million.
CityManager'sTransmittalLetter
Operating Budget
Fiscal Year 2006- 07
BUDGET AWARDS
The City received the Excellence in BudGetinG Award for the fiscal year 2005- 06 Capital Improvement
Project Budget from the California Society of Municipal Finance Officers ( CSMFO). This award is
designed for cities with separate documents for capital appropriations and/ or long- term capital
improvement plans. The City also received the Excellence in Operational BudqetinG Award for the fiscal
year 2005- 06 Annual Budget from the CSMFO. Recipients of the excellence award must exceed a
threshold level based on specific criteria designed by CSMFO and qualify for additional criteria of
comprehensiveness and quality of the budget document. This is the sixth year that the City has
received an award for its Annual Budget and the tenth year for its Capital Improvement Budget.
SUMMARY
Consistent with past years, every effort has been made to estimate revenues with reasonable
conservatism based on the most up- to- date information available to the City. A moderate approach has
been taken in estimating revenues. A strong team effort has been made to hold expenses down, even
with the addition of some new programs. The expenditures are considered necessary and proper,
taking into account the growth and development of the City, on- going programs and projects and
maintenance of a satisfactory level of service to our citizens. In addition to the monthly revenue reports
submitted to Council, staff will continue to conduct a thorough mid- year review of revenues. Any
revenue realized for the year in excess of the projections included in this budget will be transferred to
the City's general contingency reserve.
All City departments cooperatively worked together with the City Manager and the Finance Department
to prepare a reasonable budget plan. The hard work and commitment of City Department Heads and
employees in addressing the extremely difficult budget challenges faced this year is appreciated. In
addition, the policy leadership of the City Council as well as the cooperation and understanding of the
City Boards and Commissions is a reflection of the City's status as an All America City. All involved
have worked together to make the right decisions for the financial stability of the City of Santa Clara.
This budget is fiscally responsible and maintains the level of funding needed to continue the City's goal
of excellent service to the Santa Clara community. The Annual Budget ( Operating and Capital
Improvement Project Budgets) is consistent with the City of Santa Clara mission, and will facilitate the
goals of the Santa Clara City Council.
Respectfully submitted,
. ~ rJt~
nnifer ara~ g
ty Manager
xv
XV I
Budget Principles for 2006- 2007
• Budget decisions will be made with long- term implications taken into account, using data from the
Five Year Financial Plan
• Value of fiscal responsibility will be used as a guide for decisions
• Focus on benefit to community as a whole
• Inform residents, businesses and employees of challenges and the City’s responses
• Budget decisions will be made as a whole in context, with no special requests considered in isolation
• Any reduction of permanent positions will be through attrition, retirement, with avoidance of layoffs
as a goal
• Use of emergency reserves will be limited and temporary
• Committed to balanced budget without use of reserves before the end of the current Five Year Plan
• Reduce hours of operations where possible while maintaining essential service level
• Review options for consolidation of functions that reduce operational costs and improve efficiency
• Consider delay in opening or phase in opening of new facilities
• CIP that have significant continuing staffing, operational and maintenance costs will be evaluated for
deferral/ elimination
• The perception of funding actions, as well as the fiscal impact, will be considered before
expenditures are made
• Develop a long- range plan to increase certain fees which reduce subsidy from the General Fund
while maintaining the City’s low- fee structure
• Develop a strategy to rebuild General Fund Contingency Reserves ( Working Capital and Capital) for
the long- term financial health of the City.
ROSTER OF COUNCIL AND COMMISSION MEMBERS
FISCAL YEAR 2006 - 2007
CITY COUNCIL
Mayor Patricia M. Mahan
Councilmember Dominic J. Caserta
Councilmember Will Kennedy
Councilmember Patrick Kolstad
Councilmember Jamie L. Matthews
Councilmember Jamie McLeod
Councilmember Kevin Moore
BOARD OF LIBRARY TRUSTEES CIVIL SERVICE COMMISSION
Omar Ahmad, Robert Byrd, Allen Lo, Steve Chan, Mohammed M. Nadeem Ph. D,
Sandra S. Rich, Jack Spillane Robert T. Owens, Randy Preston,
Beverly Lynne Silva
CULTURAL ADVISORY COMMISSION HISTORICAL & LANDMARKS COMMISSION
Sheilah Altomare, Michelle Castro, Leigh A. Booker, Jim Boynton,
Martin A. David, Marwan A. Fawal, Mary Ann Marinshaw, Gerald McKee,
Jacqueline Moore, Art Silva, Phal J. Vaswani Charles A. Petersen, Ed Richards, Rosalie Wilson
INTERNATIONAL EXCHANGE COMMISSION PARKS AND RECREATION COMMISSION
Beatrice Costa, R. Rushton Hurley, Carole A. Cooper, Lio Francisco, Julie Frazier,
Maria Alice Jensen, Heidi M. Kozlowski, Vonna Gissler, Steve Lee, Jerry Marsalli,
James Mathre, Eugene Mirabella, Peter Yoon Chuck Seymour
PLANNING COMMISSION SENIOR CITIZENS ADVISORY COMMISSION
Frank J. Barcells, Duarte Braga, Ian Champeny, Ann Creighton, Patrick Driscoll, Foster Steven Lopes,
Karen Hardy, Joe Kornder, Tony Marine, Carolyn G. McAllister, Doris M. Modesitt,
Mohammed A. Sarodi Edward L. Murphy, Cleo M. Stuckrath
YOUTH COMMISSION HOUSING REHABILITATION LOAN COMMITTEE
Ferheen abbasi, Jeoffrey Batangan, Anne Kepner, Brice McQueen, Michelle Smith,
Andrea Butkovic, Lili Chargin, Leslie Harbinson, Jamie Matthews
Noah Lee, Elizabeth McCaman, Nikhil Marathe,
Zedric Ochoa, Tracey Ottey, Jennifer Padwal,
Angela Prochnow, Gary Schwartz,
Alyssa Whitcomb, Amanda Whitcomb
XVIII
CITY MANAGER
Jennifer Sparacino
CITY CLERK ASSISTANT CITY MANAGER
Rod Diridon, Jr. Ronald E. Garratt
CITY ATTORNEY DEPUTY CITY MANAGER
Michael R. Downey Carol L. McCarthy
CHIEF OF POLICE DIRECTOR OF PUBLIC WORKS
Stephen D. Lodge Steve Yoshino
FIRE CHIEF CITY ENGINEER
Phil Kleinheinz Rajeev Batra
DIRECTOR OF ELECTRIC UTILITY DIRECTOR OF PLANNING & INSPECTION
Junona Jonas Kevin Riley
DIRECTOR OF WATER & SEWER UTILITIES DIRECTOR OF FINANCE
Robin G. Saunders Mary Ann Parrot
DIRECTOR OF STREETS &
AUTOMOTIVE SERVICES DIRECTOR OF HUMAN RESOURCES
Richard J. Mauck Renée Ruņğis
DIRECTOR OF INFORMATION TECHNOLOGY CITY LIBRARIAN
Gaurav Garg
Karen Saunders
DIRECTOR OF PARKS & RECREATION
Larry Wolfe
XIX
CITY OF SANTA CLARA
FISCAL YEAR 2006- 2007
EXECUTIVE MANAGEMENT TEAM
XX
CITY OF SANTA CLARA
ORGANIZATION CHART
City Attorney Assistant City Clerk/
City Auditor
City Clerk
Commissions/ Boards
Chief of Police
( Reference: City Code, Chapter 2:
Administration)
Elected position indicated by the line.
City Manager serves as ex officio member of and
liaison to all boards and commissions as
indicated by the line.
June 2005
Assistant City Manager
( Deputy Director of Emergency Services)
Police Fire
Human Resources Finance
Information
Technology
Library
Parks &
Recreation
Water & Sewer
Utilities
Electric
Utilities
Planning &
Inspection
Street/
Automotive Services
Engineering Building Maintenance
Purchasing
Director Public Works
Administrative Departments
City Manager
( Director of Emergency Services)
Mayor and Council ( 6)
Electorate
CITY PROFILE
XXII
The City of Santa Clara, also known as the Mission City, is a charter city incorporated in 1852
under the laws of the State of California. The City Charter establishes the Council/ Manager
form of government. The citizens of Santa Clara elect a City Council of seven citizens, six
councilpersons and a Mayor elected at- large, who serve a term of four years each and who,
in turn, appoint a City Manager. The City is located in the County of Santa Clara, California,
approximately 45 miles southeast of San Francisco and three miles north of downtown San
Jose. It is situated in the northern part of the County and occupies approximately 19.2 square
miles. The City's population of 110,771 accounts for 6.25% of the total County population.
The City provides a full range of services. These services include: police and fire protection;
9- 1- 1 communications; electric, water and sanitation services; the construction and
maintenance of streets and infrastructure; parks and recreational activities and cultural
events; planning and zoning; library; cemetery; and general administrative and support
services.
Santa Clara is headquarters to many of the nation's leading electronics, telecommunications,
computer and semiconductor firms. The City has enjoyed and still enjoys a strong fiscal
position based on a stable industrial base. Ninety- five percent of the land zoned for industrial
uses is developed with approximately 850 manufacturing plants producing electronic
components, communications equipment and computer systems as well as items such as
fiberglass, paper and chemicals.
The City has 14 elementary schools, 2 junior high schools, 2 high schools, 4 parochial
schools, private schools, as well as a university, a community college, an adult learning
center, and a general hospital with a 337 total bed capacity and 237 affiliated
physicians/ surgeons.
Where the City Gets its Money and What Your Money Buys - Exhibit I - This exhibit provides
a summary presentation of the City's Annual Budget resources and expenditures/ expenses in
a simplistic graphical format. This exhibit is featured in the City's " Your City Budget"
Brochure that is widely distributed to the community to facilitate public awareness and
understanding of the City's budget.
Outside Group Funding - Exhibit II - This exhibit briefly describes the non- profit community
organizations that receive funding from the City for services provided to the community. The
City evaluates each request based on the cost efficiencies and the effectiveness of the
services provided by the organization. The list also includes groups funded through the
Redevelopment Agency low and moderate Income housing fund.
History1
SANTA CLARA, THE MISSION CITY, was incorporated July 5, 1852. The story of the community,
CITY PROFILE
XXIII
however, extends back to the dim past of prehistoric days in Santa Clara Valley. Here, for
thousands of years before the first Europeans came upon the scene in 1769, the Ohlone Indians
and their ancestors lived in a lush and lovely valley. Oak trees produced acorns for food, vast herds
of deer and elk and other game provided meat, and the clear waters of the streams provided fish.
Animals were hunted with the bow and arrow. Small game were caught with snares and traps.
The Indians used some of the skins of the animals for clothing and blankets. Their homes were
conically shaped structures of brush and tule. The women and children gathered food and
prepared the meals, whereas, the men were inclined to do the fishing and hunting.
The homes would be clustered in small villages, called rancherias by the Spaniards. One of these
was located near the Guadalupe River and was called Tamien. Following the Portola- Serra
Expedition of 1769, it was determined by the Franciscan Missionaries, under the leadership of
Father Serra, to establish a Mission in the Santa Clara Valley, near Tamien. It was done on
January 12, 1777, and the Mission was named for the spiritual Sister of Saint Francis of Assisi,
Santa Clara. The early mission building, located near the river, was destroyed by floods, and
another structure was erected near what is now the Southern Pacific Depot. This building was
damaged by a series of earthquakes in 1812 and 1818 to the extent that the Padres determined
that it should be relocated.
In the 1820' s, a new Mission Church and related buildings were constructed in what is now the
University of Santa Clara Campus. At about the same time, Mexico declared its independence
from Spain and California became part of the Mexican Republic. Non- Hispanic people began
moving into California. With the discovery of gold by John Marshall at Coloma, the great gold rush
began.
The war with Mexico broke out and the only battle in this part of California was fought within the
current city limits of Santa Clara. The battle sometimes known as the Battle of the Mustard Stocks
or the Battle of Santa Clara occurred in the area generally delineated by Scott and El Camino and
Lawrence Station Road. The U. S. Marines, coming from San Francisco to capture the Pueblo of
San Jose, encountered in that location a group of Californians under the leadership of a Col.
Sanchez. After a brief engagement, the forces withdrew, and an armistice was declared at a
meeting on the following day near the Mission of Santa Clara.
With the conclusion of the Mexican War by the treaty of Guadalupe Hidalgo and the admission of
California as a State to the Union on September 9, 1850, Santa Clara moved into its next phase.
Recognizing the need for educational facilities, Bishop Alemany directed that Father Nobili, a Jesuit,
establish a college at the Mission of Santa Clara. Instruction began in 1851. The University of the
Pacific, under sponsorship by the Methodist Church, obtained a charter in the same year. Santa
Clara thus became the home of two oldest institutions of higher learning in the state of California.
With incorporation in 1852, a Mayor- Council form of government was established. At one time, the
Chief Police Officer of the City was known as the Marshall, the last of whom was the late Marshall
Peter Fallon, whose shoot- out on Franklin Street with the bandit, Mark Monroe, added another
chapter to the interesting history of this City.
Through the years, Santa Clara became the site of many lovely residences, including the palatial
home of C. C. Morse one of the founders of the Ferry- Morse Seed Company. The oldest building in
the County of Santa Clara still exists in the City. This building being the Santa Clara Woman's Club
Adobe. The Adobe was originally a part of the complex of Mission buildings dating back to the
CITY PROFILE
XXIV
1780' s. The Adobe can be seen behind a brick wall on The Alameda, between Benton and Franklin
Streets, and is marked with a California Historic Landmark plaque.
Business and industry also located in Santa Clara over the years. With the coming of the fruit
industry to the Valley, packinghouses, located within the City of Santa Clara, have spread the
reputation of such products as the Santa Clara prune around the world. Many of these canneries
and packinghouses still exist. At one time, some of the major tanneries of the area were located in
Santa Clara. More recently a variety of other industries have found this location to be desirable,
including Owens- Corning Fiberglas, Memorex and others. The Great America Theme Park
continues to provide a focal point for tourists' attention.
The youth of Santa Clara has also gained prominence in a variety of fields, and the community has
sometimes been known as the Youth Sports Capital of the World. Home of the world renown,
Santa Clara Swim Club, the spacious swimming pools of the City have also accommodated the
noted Santa Clara Aquamaids and other groups. The national award winning Santa Clara
Vanguard Drum and Bugle Corps is headquartered in the City. Many other sporting activities are
encouraged through which the young people of the community have gained wide recognition and
achievement.
In over two hundred years of Santa Clara history, since the establishment of this Mission on the
banks of the Guadalupe on January 12, 1777, many changes have occurred. From the small
Indian Villages, housing a few hundreds of people, the community has grown to about 100,000.
From a pastoral area, it has grown to a modern city of commerce, schools and industry. Ample
provision has been made for cultural life by the establishment of libraries, museums, art galleries
and park and recreational facilities. Santa Clara continues its interest in its heritage and can face its
future on its reputation as a city that cares.
1 Warburton, Austen – Town Historian. “ The Santa Clara Story.”
What Your $ 491.5
Million Buys - - -
Taxes
Property Tax $ 24.2
Sales Tax 40.1
Transient Occupancy Tax 9.5
Other Taxes 3.8
Intergovernmental
Revenue from Other Agencies 6.4
Vehicle License Fees 0.6
User Fees
Charges for Current Services - Utilities 281.8
Charges for Current Services - Other 23.2
Other
Interest Income 21.9
Licenses, Permits, Fines, Penalties 4.6
Contribution In- lieu 13.9
Rents and Leases 3.0
Other Revenue/ Debt Proceeds 0.4
Enterprise Capital Projects 10.9
Beginning Balance/ Reserves/ Transfers 47.2
Total Estimated Revenue $ 491.5
$ 239.6
Electric
$ 69.0
Police, Fire, 9- 1- 1
( Communications)
$ 32.9
Capital
Projects
$ 36.1
Water &
Sewer
$ 29.9
Debt
Service
$ 16.2
Public
Works
$ 15.7
Solid
Waste
$ 11.4
Parks &
Recreation
$ 8.0
Finance &
Human Resources
$ 6.2
Internal
Services
$ 13.5
City
Administration
$ 6.4
Library
$ 5.2
Planning &
Inspection
$ 1.4
Convention/ Visitors
Bureau
Exhibit I
XXV
Exhibit II
Outside Group Funding
The City will consider funding non- profit community group. The City evaluates each request against other
organizations which meet significant community needs funding sources available to the outside group. The
or concerns of Santa Clara residents. Funding is Redevelopment Agency also provides funding for services
usually limited to not more than one year. Multi- year that assist housing needs for low and moderate income
funding is available to groups that provide a service categories.
more cost effectively than the City, or because its role
in the community makes it the most logical service
provider. Funding in any case is dependent upon City
budget limitations and past performance by the outside
Bill Wilson Center - $ 64,202 Council on Aging - Case Management $ 4,744
Provides family and individual counseling Provides case management for senior
and youth crisis intervention at local schools. residents, working through the Senior Center.
Bill Wilson Center - Centre for Living with $ 4,518 Emergency Housing Consortium - $ 49,371
Dying - Provides emergency shelter, transition
Provides grief support services, including counseling, food and clothing for homeless
individual and group counseling. families and individuals.
Catholic Charities Long Term Care $ 8,679
Ombudsman - Heart of the Valley $ 3,280
Monitors quality of care to elderly and Provides transportation for seniors and
disabled residents of long- term care disabled persons who are unable to travel by
facilities. bus or other public transportation and to
collect demographic information on new
Catholic Charities Shared Housing $ 16,000 paratransit clients.
Project -
Matches low income parents with children Jazz Arts Music Network $ 5,000
and people with AIDS to available, under- Host and organizer of annual Kwanzaa Festival.
utilized housing.
Championship Team Trust Fund - $ 40,000 Keep Santa Clara Clean - $ 500
Funding assistance for championship teams/ Anti- litter, anti- graffiti program promoting a
individuals and sports affiliated groups to clean and healthy City environment.
travel to state, national and international
competition representing the City of Santa Live Oak Adult Day Services - $ 4,744
Clara. Provides adult day care for dependent
and disabled seniors.
Concerts in the Park - $ 4,500
Provides six concerts at Central Park near the Mission City Opera $ 5,000
Pavilion. Provides quality opera performances to the
community.
ADOPTED
XXVI
Miss Santa Clara Pageant - $ 14,000 Santa Clara Players - $ 5,760
Provides an opportunity to receive an Provides theatrical performances for the
educational scholarship. entertainment and enjoyment of the
community.
Next Door - $ 22,590
Case Management for survivors of Santa Clara Swim Club - $ 35,000
domestic violence. Host swim meets which bring national and
international visitors to our city.
Operation Brown Bag - $ 5,873
Distributes weekly bags of food for low - Senior Adult Legal Assistance - $ 5,724
income seniors. Provides free legal services for seniors that
includes advice and referrals, document
Project Sentinel - Fair Housing - $ 18,000 writing and legal representation.
Addresses complaints and undertakes
investigation of illegal housing Silicon Valley Independent Living Center
1. Provides counseling and training services $ 20,185
Project Sentinel - HUD Counseling - $ 3,193 for adults with physical disabilities.
Counseling in personal finance for mortgage
or rent delinquency and default 2. Provides training in independent living
skills to adults who are disabled as a
Project Sentinel - Rent Mediation - $ 44,018 result of a recent traumatic injury.
Provides advice, referrals, counseling, and
mediationservices to tennants and landlords Support Network for Battered Women - $ 6,705
to resolve disputes regarding renatal arrangements Provides counseling, shelter and legal services
for battered spouses and their families.
Saint Justin Community Ministry $ 13,554
Provides food assistance to low/ moderate Tourist and Convention Bureau - $ 1 ,370,561
income residents. Market City as a tourism and convention
destination.
Santa Clara Ballet - $ 13,000
Provides cultural, music, dancing, Triton Museum -
entertainment and performances for the 1. Provides artistic exhibitions and $ 2 90,000
enjoyment of all. educational programs.
Santa Clara Chorale - $ 10,200 Valley Transportation Authority - $ 54,217
Provides community choral performances. Provides transportation for seniors and
disabled persons who are unable to travel by
Santa Clara Kiwanis/ Lions Fish Derby $ 960 bus or other public transportation.
Provides funding for annual Fish Derby for
local youth.
Santa Clara Nutrition Site - $ 31,627
Provides daily delivery of meals to severely
disabled, homebound seniors.
Total Funding Provided to Community Groups $ 2 ,175,705
Outside Group Funding ( continued)
ADOPTED
General Information &
Summaries
1
BUDGETARY ACCOUNTING
The budget of the City is a detailed operating plan, which identifies estimated costs and program benefits in
relation to estimated revenues. The budget is prepared on a non- GAAP budgetary accounting basis. The
budget includes:
1. The proposed services to be provided during the fiscal year and the associated appropriations to cover the
costs of the proposed programs, projects, services and activities.
2. The estimated revenue available to finance the proposed service levels.
The budget represents a process through which policy decisions are made, implemented and controlled. The
City Charter requires that the City establish a budgetary system for general operations, and prohibits
expending funds for which there is no legal appropriation. The City is required to adopt an annual operating
budget on or before June 30 for the ensuing fiscal year. The procedures followed to establish the budget are
as follows:
1. The City Manager submits to the City Council a proposed operating budget for the following July 1.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a minute order.
From the effective date upon which the City Council formally approves the Annual Operating Budget, the
amounts stated therein, as proposed expenditures become appropriations. The City Council may amend the
budget by motion during the fiscal year. The legal level of budgetary control ( that is, the level at which
expenditures cannot legally exceed the appropriated amount) is at the object category level within a
department.
The operating budget is prepared at the object category level within programs within departments. Transfers
between object categories within a department and any transfers between departments require City Council
approval. Please see Additional Information Section at the back of this budget document for additional
information on budgets and fund accounting.
GRAPHS AND CHARTS
The following four pages ( 2 through 5) depict various budget relationships for the fiscal year 2006- 07 budget.
The pie charts on page 2 show the total City estimated revenues by source and the total City appropriations by
object category. A detailed presentation of revenues can be found on Pages 16 through 31 and a detail of
expenditures can be found on pages 32 through 43.
The pie charts on page 3 show general operating funds estimated revenues by source and general operating
funds appropriations by object category. A detailed presentation of general operating fund revenues can be
found on Pages 18 and 19. General operating fund appropriations, which include the following City
Departments/ Divisions, can be found on pages 22 through 23:
City Council, City Manager, City Clerk/ Auditor, City Attorney, Human Resources, Information Technology,
Finance ( including General Operating Debt Service), Planning, Library, Building Maintenance, Purchasing,
Engineering, Police, Fire, and portions of Streets, Parks and Recreation, and Communications.
The four line graphs on pages 4 and 5 reflect revenue trends for the General Fund's primary source of external
revenues. The numbers for fiscal years 1997- 98 through 2004- 05 show actual receipts, while the numbers for
fiscal years 2005- 06 and 2006- 07 show budget estimates.
Actual expenditures for fiscal years 2004- 05 and 2003- 04, the 2005- 06 and the 2006- 07 adopted appropriations are
summarized on pages 10 and 11 by Fund ( including General Fund Departments). Actual revenues for fiscal years
2003- 04 and 2004- 05, the 2005- 06 and the 2006- 07 adopted estimated revenues are summarized on pages 12 and
13 by fund.
City of Santa Clara
2006- 2007
$ 491,539,193
Total City Revenues
by Source
( Dollars in Millions)
Taxes $ 77.5
Charges for Services $ 308.4
Interest $ 21.9 Other Revenues $ 69.8
Contribution In- Lieu $ 13.9
Total City Appropriations
by Object Category
( Dollars in Millions)
Interfund Services $ 17.1
Debt Service $ 29.9
Salaries & Benefits $ 134.6
Other Operating
Expenditures $ 47.3
Capital Improvements $ 32.9
Resource & Production $ 215.3
Contribution In- lieu
& Franchise Tax $ 14.4
2
City of Santa Clara
2006- 2007
$ 135,269,329
General Operating Funds
Revenue by Source
( Dollars in Millions)
Sales Tax $ 40.1
Charges for Services $ 17.0
Interest Income $ 5.4
Property Tax $ 24.2
General Operating Funds
Appropriations by Object Category
( Dollars in Millions)
Interfund Services $ 5.4
Debt Service $ 6.4
Transient
Occupany
Tax $ 9.5
Contribution In- lieu $ 13.9
Other Revenue Sources $ 22.6
Salaries & Benefits $ 104.3
Other Operating
Expenditures $ 19.2
Rents& Leases $ 2.6
3
CITY OF SANTA CLARA
GENERAL FUND REVENUES
TEN YEAR TREND LINE
Property Tax ($ Millions)
$ 8
$ 10
$ 12
$ 14
$ 16
$ 18
$ 20
$ 22
$ 24
$ 26
97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
Sales Tax ($ Millions)
$ 26
$ 29
$ 32
$ 35
$ 38
$ 41
$ 44
$ 47
$ 50
$ 53
$ 56
97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
Estimated
Estimated
4
CITY OF SANTA CLARA
GENERAL FUND REVENUES
TEN YEAR TREND LINE
Interest Income ($ Millions)
$ 4
$ 6
$ 8
$ 10
$ 12
$ 14
97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
Estimated
Transient Occupancy Tax ($ Millions)
$ 2
$ 4
$ 6
$ 8
$ 10
$ 12
$ 14
$ 16
97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
Estimated
5
6
REVENUE ESTIMATES AND FEE IMPACTS
Fiscal Year 2006 - 07 Revenue Assumptions
Rate of Inflation 2.6% increase based on national, state and local economic forecasts.
General Fund 3.0% increase in budgeted direct revenue.
Property Tax 20.1% increase, which includes the restoration of $ 2.2 million in City
property tax revenue previously transferred to the State under ERAF III.
Sales Tax 8.25% increase due to improved economic conditions in fiscal year 2006- 07.
Transient Occupancy Tax 19.5% increase based on prevailing revenue trend, and increased demand
for hotel rooms in the County.
Interest Income 16.5% decrease based on decreased reserve balances combined with lower
yields.
Contribution In- lieu of Tax 12.5 % increase due to increased sales and increased Electric rates
compared to the fiscal year 2005- 06 budget.
Enterprise Funds Rate and Fee Impact
Rate Type Fiscal Year 2006- 07 Rate Change
Electric Utility Rate 5.0% ( Approved December 12/ 2005)*
Water Utility Rate 7.0% increase
Sewer Utility Rate 6.0% increase ( Approved 5/ 2005)
Clean up Campaign Charge None
Household Hazardous Waste Charge None
Garbage Collection and Disposal Rate $ 0.20 per month Single Family Rate
Residential Curbside Recycling Rate None
Rubbish ( Clean Green) Program Rate $ 2.00 per month, per participating residence
Recycle Water Rate 12%- 16% depending on type of service
Municipal Solar Utility None
* 5.0% January 2006. 5.0% July 2006. 10.25% compounded rate.
SUMMARY OF ESTIMATED RESOURCES
BY FUND AND REVENUE CATEGORY
FISCAL YEAR 2006 - 2007
General Capital Special Internal
Revenue Category Operating Projects Revenue Enterprise Services Totals
Property Taxes $ 24,164,651 $ - $ - $ - $ - $ 2 4,164,651
Sales Tax 40,110,000 - - - - 4 0,110,000
Other Taxes 13,262,000 - - - - 1 3,262,000
Licenses and Permits 3,164,000 - - - - 3 ,164,000
Fines and Penalties 1,472,000 - - - - 1 ,472,000
Use of Money and Property 8,076,640 - - 16,911,462 - 2 4,988,102
Revenue from Other Agencies 1,901,000 675,632 3,751,317 715,000 - 7 ,042,949
Charges for Current Services 16,991,000 283,000 678,679 285,203,295 5,271,660 3 08,427,634
Contribution In- lieu of Taxes 13,862,342 - - - - 1 3,862,342
Other Revenue/ Debt Proceeds 228,000 - - 106,500 110,040 444,540
Subtotal - Estimated Revenue 123,231,633 958,632 4,429,996 302,936,257 5,381,700 4 36,938,218
Transfer/ Designation From ( To) Reserve ( 1,142,410) 3,661,400 ( 13,000) 29,285,726 ( 137,890) 3 1,653,826
Inter- fund Transfers 13,180,106 1,558,420 ( 574,080) ( 464,870) - 1 3,699,576
Estimated Beginning Balance - 995,481 742,374 6,551,000 958,718 9 ,247,573
TOTAL ESTIMATED RESOURCES $ 135,269,329 $ 7 ,173,933 $ 4,585,290 $ 338,308,113 $ 6,202,528 $ 491,539,193
SUMMARY OF ESTIMATED RESOURCES
BY FUND AND REVENUE CATEGORY
FISCAL YEAR 2005 - 2006
General Capital Special Internal
Revenue Category Operating Projects Revenue Enterprise Services Totals
Property Taxes $ 20,115,000 $ - $ - $ - $ - $ 2 0,115,000
Sales Tax 37,053,000 - - - - 3 7,053,000
Other Taxes 11,131,000 - - - - 1 1,131,000
Licenses and Permits 3,132,200 - - - - 3 ,132,200
Fines and Penalties 1,307,730 - - - - 1 ,307,730
Use of Money and Property 16,385,640 - - 18,710,065 - 3 5,095,705
Revenue from Other Agencies 2,288,724 660,032 3,772,471 559,000 - 7 ,280,227
Charges for Current Services 15,765,796 110,000 678,579 253,023,729 4,940,455 2 74,518,559
Contribution In- lieu of Taxes 12,165,295 - - - - 1 2,165,295
Other Revenue/ Debt Proceeds 225,000 - - 102,500 110,040 437,540
Subtotal - Estimated Revenue 119,569,385 770,032 4,451,050 272,395,294 5,050,495 4 02,236,256
Transfer/ Designation From ( To) Reserve 2,107,766 6,167,859 ( 12,900) 21,804,629 ( 124,156) 2 9,943,198
Inter- fund Transfers 3,925,270 1,437,265 ( 391,926) ( 304,573) ( 70,000) 4 ,596,036
Estimated Beginning Balance - 3,304,000 1,681,898 6,583,500 1,480,208 1 3,049,606
TOTAL ESTIMATED RESOURCES $ 125,602,421 $ 1 1,679,156 $ 5,728,122 $ 300,478,850 $ 6,336,547 $ 449,825,096
7
SUMMARY OF APPROPRIATIONS
BY FUND AND CATEGORY
FISCAL YEAR 2006 - 2007
Other Resource Contribution In-
Salaries Operating and lieu of Taxes & Interfund Capital Debt
Fund Name and Benefits Expenditures Production Franchise Fees Services Improvements Service Totals
General Operating Fund:
General Government $ 11,451,644 $ 11,372,434 $ - $ - $ 1 74,106 $ - $ - $ 2 2,998,184
Public Works 11,706,315 2,120,841 - - 9 80,111 - - 1 4,807,267
Public Safety + 9- 1- 1 62,982,078 2,399,824 - - 3 ,622,211 - - 6 9,004,113
Parks & Recreation 8,447,368 1,658,569 - - 4 35,691 - - 1 0,541,628
Library 5,144,696 1,156,765 - - 5 3,300 - - 6 ,354,761
Planning & Inspection 4,624,216 493,639 - - 8 0,074 - - 5 ,197,929
Debt Service - - - - - - 6 ,365,447 6 ,365,447
Total- Gen. Operating 104,356,317 19,202,072 - - 5 ,345,493 - 6 ,365,447 1 35,269,329
Special Revenue Funds 126,557 1,334,688 - - 4 7,613 3 ,076,432 - 4 ,585,290
Capital Projects Funds - - - - - 7 ,173,933 - 7 ,173,933
Enterprise Funds 27,965,513 22,844,694 215,306,613 1 4,396,565 1 1,562,235 2 2,660,000 2 3,572,493 3 38,308,113
Internal Service Funds 2,176,676 3,891,730 - - 1 34,122 - - 6 ,202,528
CATEGORY TOTALS $ 134,625,063 $ 47,273,184 $ 215,306,613 $ 1 4,396,565 $ 1 7,089,463 $ 3 2,910,365 $ 2 9,937,940 $ 4 91,539,193
SUMMARY OF APPROPRIATIONS
BY FUND AND CATEGORY
FISCAL YEAR 2005 - 2006
Other Resource Contribution In-
Salaries Operating and lieu of Taxes & Interfund Capital Debt
Fund Name and Benefits Expenditures Production Franchise Fees Services Improvements Service Totals
General Operating Fund:
General Government $ 8,731,471 $ 11,246,535 $ - $ - $ 1 75,010 $ - $ - $ 2 0,153,016
Public Works 11,775,990 2,203,046 - - 9 17,546 - - 1 4,896,582
Public Safety + 9- 1- 1 56,057,605 2,568,036 - - 3 ,392,556 - - 6 2,018,197
Parks & Recreation 8,367,512 1,694,215 - - 4 16,954 - - 1 0,478,681
Library 5,338,373 1,103,228 - - 7 4,062 - - 6 ,515,663
Planning & Inspection 4,626,320 480,889 - - 7 1,399 - - 5 ,178,608
Debt Service - - - - - - 6 ,361,674 6 ,361,674
Total- Gen. Operating 94,897,271 19,295,949 - - 5 ,047,527 - 6 ,361,674 1 25,602,421
Special Revenue Funds 131,630 1,260,021 - - 4 3,158 4 ,293,313 - 5 ,728,122
Capital Projects Funds - - - - - 1 1,679,156 - 1 1,679,156
Enterprise Funds 26,621,003 22,046,102 188,411,635 1 2,570,095 1 1,267,504 1 6,445,500 2 3,117,011 3 00,478,850
Internal Service Funds 2,155,257 4,063,981 - - 1 17,309 - - 6 ,336,547
CATEGORY TOTALS $ 123,805,161 $ 46,666,053 $ 188,411,635 $ 1 2,570,095 $ 1 6,475,498 $ 3 2,417,969 $ 2 9,478,685 $ 4 49,825,096
8
SUMMARY OF ESTIMATED RESOURCES
THREE YEAR TREND BY REVENUE CATEGORY
ADOPTED BUDGETS FOR FISCAL YEARS 2004- 2005 through 2006- 2007
ESTIMATED RESOURCES
2006- 2007 2005- 2006 2004- 2005
Revenue Categories
Property Taxes $ 2 4,164,651 $ 20,115,000 $ 1 6,271,000
Sales Tax 40,110,000 37,053,000 3 5,239,000
Transient Occupancy Tax 9,450,000 7,904,000 7,106,000
Other Taxes 3,812,000 3,227,000 3,043,000
Licenses and Permits 3,164,000 3,132,200 3,045,200
Fines and Penalties 1,472,000 1,307,730 1,359,800
Interest 21,930,102 23,452,505 2 5,872,881
Other use of Money and Property 3,058,000 11,643,200 8,490,372
Revenue from Other Agencies 7,042,949 7,280,227 1 0,971,220
Charges for Current Services 3 08,427,634 274,518,559 2 63,721,064
Contribution In- lieu 13,862,342 12,165,295 1 2,179,487
Other Revenue 444,540 437,540 3,402,540
Transfers From ( To) Reserves 31,653,826 29,943,198 4 1,656,556
Interfund Transfers 13,699,576 4,596,036 4,243,223
Estimated Beginning Balance 9,247,573 13,049,606 1 0,356,403
Total Estimated Resources $ 491,539,193 $ 449,825,096 $ 4 46,957,746
SUMMARY OF APPROPRIATIONS
THREE YEAR TREND BY EXPENDITURE CATEGORY
ADOPTED BUDGETS FOR FISCAL YEARS 2004- 2005 through 2006- 2007
PROJECTED EXPENDITURES
2006- 2007 2005- 2006 2004- 2005
Expenditure Categories
Salaries and Benefits $ 1 34,625,063 $ 1 23,805,161 $ 1 21,192,005
Other Operating Expenditures 47,273,184 46,666,053 4 3,982,484
Resource and Production 2 15,306,613 188,411,635 1 69,994,166
Contribution In- lieu & Franchise Fees 14,396,565 12,570,095 1 2,561,487
Interfund Services 17,089,463 16,475,498 1 2,918,296
Debt Service 29,937,940 29,478,685 2 4,063,001
Total Operating Budget 458,628,828 417,407,127 3 84,711,439
Capital Improvement Project Budget 32,910,365 32,417,969 6 2,246,307
Total Projected Expenditures $ 491,539,193 $ 449,825,096 $ 4 46,957,746
9
FY 2003- 04 FY 2004- 05 FY 2005- 06 FY 2006- 07
DEPARTMENT/ FUND NAME Actual Actual Adopted Adopted
GENERAL FUND ( by Department)
City Council $ 216 $ 218 $ 247 $ 256
City Manager 5,754 3 ,818 4,199 7,122
City Clerk 534 6 33 527 792
City Attorney 1,227 9 57 1,123 1,067
Information Technology 4,040 6 ,115 5,877 5,772
Human Resources 1,651 1 ,478 1,849 1,806
Finance 6,004 5 ,559 6,330 6,184
Parks and Recreation 10,020 10,174 10,479 10,542
Library 5,899 6,579 6,516 6,355
Planning and Inspection 5,139 5 ,038 5,179 5,197
Street 6,096 5 ,619 6,372 6,245
Engineering 5,734 5 ,452 6,184 6,262
Building Maintenance 1,334 1 ,260 1,508 1,503
Purchasing 839 7 42 832 796
Police 33,900 30,704 34,059 38,460
Fire 27,414 25,559 27,959 30,545
General Fund - Total Budget 115,801 109,905 119,240 128,904
Debt Service Fund ( 431, 441) $ 6,293 $ 6,377 $ 6,362 $ 6,365
Capital Improvement Project Funds
Traffic Mitigation ( 525) $ 2,993 $ 1,074 $ 2,730 $ 550
Street Beautification ( 531) 281 70 60 60
Parks and Recreation ( 532) 6,804 929 805 280
Streets and Highways ( 533) 1,703 548 430 669
Storm Drain ( 535) 2,373 307 600 530
Fire Department ( 536) 1,169 545 2,942 74
Library Department ( 537) 16,038 879 - 25
Public Buildings ( 538) 1,830 509 765 1,691
General Government- Other ( 539) 8,424 7,068 3,347 3,295
41,615 11,929 11,679 7,174
Special Revenue Funds
Dwntwn. Parking Mtce. District ( 025) $ 138 $ 111 $ 125 $ 126
Convention Ctr . Mtce. District ( 026) 1,159 1,216 1,231 1,307
Recreation Programs ( 041) 79 73 79 76
HUD Program Commty. Serv. ( 562) 2,953 2,459 1,248 1,276
Special Gas Tax ( 521) 1,061 686 750 750
Special Gas Tax ( 522) 689 558 1,845 600
Collier- Uruh Trans. Act ( 524) 576 - 450 450
6,655 5,103 5,728 4,585
2006 - 07 Budget by Fund
And P/ Y Appropriations/ Expenditures
City of Santa Clara
( amounts expressed in thousands)
10
FY 2003- 04 FY 2004- 05 FY 2005- 06 FY 2006- 07
DEPARTMENT/ FUND NAME Actual Actual Adopted Adopted
2006 - 07 Budget by Fund
And P/ Y Appropriations/ Expenditures
City of Santa Clara
( amounts expressed in thousands)
Internal Service Funds
Vehicle Maintenance ( 053) $ 3,102 $ 2,894 $ 3,354 $ 3,571
Vehicle Acquisition ( 050) 741 1,169 2,392 1,981
Communications Tech. Services ( 047) 512 483 571 631
Communications Acquisition ( 048) 13 - 20 20
4,368 4,546 6,337 6,203
Enterprise Funds
Electric Utility ( 091,491,534,591) $ 264,303 $ 310,706 $ 245,727 $ 280,276
Water Utility ( 092,592) 19,544 19,424 22,163 23,272
Water Recycling ( 097,497,597) 737 907 981 914
Sewer Utility ( 094,594) 12,764 16,101 15,489 16,909
Solid Waste ( 096,596) 15,020 14,244 15,275 16,111
Cemetery ( 093,593) 436 766 844 826
312,804 362,148 300,479 338,308
Total City $ 4 87,536 $ 500,008 $ 449,825 $ 491,539
Redevelopment Agency
Bayshore North ( 901, 939, 941) $ 32,297 $ 32,433 $ 45,312 $ 32,225
University Project ( 902, 938, 942) 234 145 396 1,370
Housing ( 910,915) 4,388 10,321 4,133 9,336
36,919 42,899 49,841 42,931
Sport. & Open Space Authty.
Sports & Open Space Authty. ( 801) $ 18 $ 28 $ 45 $ 45
Santa Clara Golf and Tennis ( 811,840) 3,692 1,211 1,852 1,987
3,710 1,239 1,897 2,032
Total - City & Agency $ 5 28,165 $ 544,146 $ 501,563 $ 536,502
11
FY 2003- 04 FY 2004- 05 FY 2005- 06 FY 2006- 07
FUND Actual Actual Adopted Adopted
General Operating Funds
General Fund ( 001) $ 115,227 $ 111,636 $ 117,132 $ 130,047
Debt Service Fund ( 441) 6,352 6,351 6,362 6,365
121,579 117,987 123,494 136,412
Capital Improvement Project Funds
Traffic Mitigation ( 525) $ 1,900 $ 658 $ - $ -
Street Beautification ( 531) ( 487) ( 233) 60 60
Parks and Recreation ( 532) ( 372) ( 4,237) 805 280
Streets and Highways ( 533) 882 417 346 669
Storm Drain ( 535) 806 544 110 120
Fire Department ( 536) 649 1,559 2,942 74
Library Department ( 537) 204 218 - 25
Public Buildings ( 538) ( 120) 604 765 1,655
General Government- Other ( 539) 5,898 4,167 3,347 3,296
9,360 3,697 8,375 6,179
Special Revenue Funds
Downtown. Parking Mtce. District ( 025 ) $ 134 $ 136 $ 158 $ 138
Convention Ctr . Mtce. District ( 026) 1,248 1,394 1,197 1,198
Recreation Programs ( 041) 79 77 79 75
HUD Program Community. Serv. ( 562) 3,323 2,202 1,178 1,239
Special Gas Tax ( 521) 738 729 650 650
Special Gas Tax ( 522) 970 612 385 155
Collier- Uruh Trans. Act ( 524) 543 610 400 400
7,035 5,760 4,047 3,855
Internal Service Funds
Vehicle Maintenance ( 053) $ 3,385 $ 3,393 $ 3,413 $ 3,410
Vehicle Acquisition ( 050) 621 719 1,009 1,307
Communications Tech. Services ( 047) 428 469 473 506
Communications Acquisition ( 048) ( 270) ( 175) 85 158
4,164 4,406 4,980 5,381
Revenue Summary - All Funds
FY 2003- 04 through FY 2006- 07
City of Santa Clara
( amounts expressed in thousands)
12
FY 2003- 04 FY 2004- 05 FY 2005- 06 FY 2006- 07
FUND Actual Actual Adopted Adopted
Revenue Summary - All Funds
FY 2003- 04 through FY 2006- 07
City of Santa Clara
( amounts expressed in thousands)
Enterprise Funds
Electric Utility ( 091,491,534,591) $ 364,317 $ 214,134 $ 220,635 $ 247,990
Water Utility ( 092,492,592) 19,262 19,858 20,709 22,153
Water Recycling ( 097,497,597) 1,031 750 1,070 920
Sewer Utility ( 094,494,594) 12,863 12,896 13,593 14,306
Solid Waste ( 096,496,596) 14,538 15,038 15,276 16,288
Cemetery ( 093,493,593) 538 710 844 815
412,549 263,386 272,127 302,472
Total City $ 554,687 $ 395,236 $ 413,023 $ 454,299
Redevelopment Agency
Bayshore North ( 901, 939, 941) $ 30,118 $ 27,317 $ 15,825 $ 20,441
University Project ( 902, 938, 942) 348 381 296 1,270
Housing ( 910, 915) 13,008 9,306 8,176 8,344
43,474 37,004 24,297 30,055
Sport. & Open Space Authty.
Sport. & Open Space Authty. ( 801) $ 21 $ 18 $ 45 $ 45
Santa Clara Golf and Tennis ( 811, 840) 1,725 1,902 1,851 1,897
1,746 1,920 1,896 1,942
Total - City & Agency $ 599,907 $ 434,160 $ 439,216 $ 486,296
13
Estimated Fund Balances
FY06- 07
Estimated Fund Estimated Estimated Fund
Balance at FY06- 07 Revenues & Balance at
06- 30- 06 Appropriations Net Transfers 06- 30- 07
General Operating Funds
General Fund ( 001) ( a) $ 2,596,662 $ 1 28,903,882 $ 1 30,047,592 $ 3 ,740,372
Debt Service Fund ( 441, 431) 7,820,591 6 ,365,447 6 ,365,447 7 ,820,591
10,417,253 1 35,269,329 1 36,413,039 1 1,560,963
Capital Projects Funds
Streets and Highways Funds ( 525, 531, 533) ( b) 4,688,817 1 ,278,632 7 28,632 4 ,138,817
General Government ( 532, 535, 536, 537, 538, 539) ( b) 1,519,988 5 ,895,301 5 ,485,301 1 ,109,988
6,208,805 7 ,173,933 6 ,213,933 5 ,248,805
Special Revenue Funds
Maintenance Districts ( 025, 026) 511,321 1 ,432,747 1 ,323,204 4 01,778
Recreation Programs ( 041) 54,000 7 6,111 7 6,111 5 4,000
Community Services HUD Program ( 562) ( b) 82,188 1 ,276,032 1 ,238,901 4 5,057
Streets and Highways Funds ( 521, 522, 524) ( b) 4,982,331 1 ,800,400 1 ,204,700 4 ,386,631
5,629,840 4 ,585,290 3 ,842,916 4 ,887,466
Enterprise Funds
Electric Utility ( 091, 491, 534, 591) 396,988,007 2 80,276,552 2 47,989,817 3 64,701,272
Water Utility ( 092, 492, 592) 10,153,014 2 3,271,903 2 2,152,515 9 ,033,626
Water Recycling ( 097, 497, 597) 2,734,825 9 13,620 9 19,600 2 ,740,805
Sewer Utility ( 094, 494, 594) 17,521,599 1 6,909,311 1 4,306,540 1 4,918,828
Solid Waste ( 096, 496, 596) ( c) ( 2,835,491) 1 6,110,937 1 6,228,125 ( 2,718,303)
Cemetery ( 093, 493, 593) ( 1,430,606) 8 25,790 8 14,790 ( 1,441,606)
423,131,348 3 38,308,113 3 02,411,387 3 87,234,622
Internal Service Funds
Vehicle Maintenance ( 053) 1,857,898 3 ,571,100 3 ,410,303 1 ,697,101
Vehicle Acquisition ( 050) 3,359,096 1 ,980,300 1 ,307,279 2 ,686,075
Communications Technical Services ( 047) 24,336 6 31,128 5 06,228 ( 100,564)
Communications Acquisition ( 048) 60,639 2 0,000 1 57,890 1 98,529
5,301,969 6 ,202,528 5 ,381,700 4 ,481,141
$ 450,689,215 $ 491,539,193 $ 454,262,975 $ 413,412,997
( a) General Operating Fund only; does not include the General Contingency Reserve Fund. See the Five
Year Financial Plan, included in the Capital Improvement Budget, for a discussion of the General
Contingency Reserve Fund balances.
( b) Capital Project appropriations are fully funded, project length appropriations; beginning fund balance
does not include the estimated unspent appropriations at 6- 30- 06.
( c) Fund balance has been reduced by the unfunded liability for estimated post- closure costs.
City of Santa Clara
As of June 30, 2006 and 2007
14
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15
Estimated Resources
All Funds
General Capital
Operating Improvement
Revenue Accounts TOTALS Funds Funds
Taxes:
Property Tax:
Secured $ 2 2,464,651 $ 22,464,651 $ -
Unsecured 1 ,700,000 1,700,000 -
Subtotal - Property Tax 2 4,164,651 24,164,651 -
Sales Tax 4 0,110,000 40,110,000 -
Transient Occupancy Tax 9 ,450,000 9,450,000 -
Franchise Tax 2 ,912,000 2,912,000 -
Document Transfer Tax 9 00,000 900,000 -
Total Taxes 7 7,536,651 77,536,651 -
Licenses and Permits:
Business Licenses 8 14,400 814,400 -
Building Permits 1 ,858,000 1,858,000 -
Electric Permits 2 00,000 200,000 -
Plumbing Permits 1 80,000 180,000 -
Mechanical Permits 1 10,000 110,000 -
Street Opening Permits 1 ,500 1,500 -
Misc. Licenses and Permits 1 00 100 -
Total Licenses and Permits 3 ,164,000 3,164,000 -
Fines and Penalties:
Traffic Fines 5 22,000 522,000 -
California Vehicle Code 1 90,000 190,000 -
Library Fines 2 60,000 260,000 -
Collection Charges 5 00,000 500,000 -
Total Fines and Penalties 1 ,472,000 1,472,000 -
Use of Money and Property:
Interest Income 2 1,930,102 5,426,640 -
Rents and Leases 2 ,980,000 2,644,000 -
Miscellaneous Money and Propert 6 ,000 6,000 -
Total Money and Property 2 4,916,102 8,076,640 -
Revenue from Other Agencies:
Community Devel. Block Grant 1 ,106,615 - -
HOME Program 6 18,591 - -
Vehicle License Fee 6 12,000 612,000 -
Gas Tax ( 2105, 2106, 2107, 2126 1 ,950,000 - -
Homeowner Tax Relief 1 90,000 190,000 -
Misc. Revenue from Other Agenci 2 ,565,743 1,099,000 675,632
Total Rev. from Other Agencies 7 ,042,949 1,901,000 675,632
16
Estimated Resources
All Funds
Revenue Accounts
Taxes:
Property Tax:
Secured
Unsecured
Subtotal - Property Tax
Sales Tax
Transient Occupancy Tax
Franchise Tax
Document Transfer Tax
Total Taxes
Licenses and Permits:
Business Licenses
Building Permits
Electric Permits
Plumbing Permits
Mechanical Permits
Street Opening Permits
Misc. Licenses and Permits
Total Licenses and Permits
Fines and Penalties:
Traffic Fines
California Vehicle Code
Library Fines
Collection Charges
Total Fines and Penalties
Use of Money and Property:
Interest Income
Rents and Leases
Miscellaneous Money and Propert
Total Money and Property
Revenue from Other Agencies:
Community Devel. Block Grant
HOME Program
Vehicle License Fee
Gas Tax ( 2105, 2106, 2107, 2126
Homeowner Tax Relief
Misc. Revenue from Other Agenci
Total Rev. from Other Agencies
Special Internal
Revenue Enterprise Service
Funds Funds Funds
$ - $ - $ -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- 16,503,462 -
- 336,000 -
- - -
- 16,839,462 -
1,106,615 - -
618,591 - -
- - -
1,950,000 - -
- - -
76,111 715,000 -
3,751,317 715,000 -
17
Estimated Resources
All Funds
General Capital
Operating Improvement
Revenue Accounts TOTALS Funds Funds
Charges for Current Services:
Customer Service Charges 2 62,077,462 - 120,000
Connection Charges 1 ,000,000 - -
Sewer Charges 1 4,220 - -
Recreation Programs 1 ,305,790 1,305,790 -
Engineering Fees 1 81,160 181,160 -
Planning and Zoning Fees 2 20,000 220,000 -
Inter- department Services 1 5,668,341 11,279,050 -
Refuse Collection Charges 1 3,740,125 - -
Sales- Facilities, Labor & Other 6 25,900 - -
Equipment Amortization 1 ,365,169 - -
Solar Installation and Service Cha 9 6,400 - -
Clean- up campaign 1 ,469,000 - -
Plan Check and Sign Fees 1 ,500,000 1,500,000 -
Police Monitored Alarm Fee 1 17,000 117,000 -
Fire Prevention Fees 1 ,400,000 1,400,000 -
Sales- Bulk Power, Steam Sales, G 1 ,904,388 - -
Household Hazardous Waste Cha 1 27,000 - -
Misc. Charges for Current Service 2 ,195,679 988,000 163,000
Total Charges for Current Services 3 05,007,634 16,991,000 283,000
Other Revenue:
Contribution In- lieu of Taxes 1 3,862,342 13,862,342 -
Damage Recoveries 6 0,000 - -
Miscellaneous Other Revenue 3 84,540 228,000 -
Total Other Revenue 1 4,306,882 14,090,342 -
TOTAL DIRECT REVENUE, OPERATIO 4 33,446,218 123,231,633 958,632
Contingent/ Reserve Transfers, Loans and Designations:
Transfer From ( To) GF Gen. Cont 3 ,795,290 - 3,661,400
Transfer From ( To) GF Working C ( 1,143,710) ( 1,143,710) -
Transfer From RDA 1 0,119,181 10,117,881 1,300
Transfer From ( To) Fund Reserve ( 150,890) - -
Transfer From ( To) Cost Reducion 2 7,686,735 - -
Transfer ( To) Enterprise Fund Res 1 ,670,991 - -
Transfer From Non- Expendable T 1 7,000 - -
Transfer From Comm. Equip. Res - - -
Transfer From Sports& Open Spac 2 ,488,145 2,488,145 -
Transfer From Gas Tax ( 2105, 21 - 745,300 -
Transfer From Comm. Svcs. HUD - 486,305 -
18
Estimated Resources
All Funds
Revenue Accounts
Charges for Current Services:
Customer Service Charges
Connection Charges
Sewer Charges
Recreation Programs
Engineering Fees
Planning and Zoning Fees
Inter- department Services
Refuse Collection Charges
Sales- Facilities, Labor & Other
Equipment Amortization
Solar Installation and Service Cha
Clean- up campaign
Plan Check and Sign Fees
Police Monitored Alarm Fee
Fire Prevention Fees
Sales- Bulk Power, Steam Sales, G
Household Hazardous Waste Cha
Misc. Charges for Current Service
Total Charges for Current Services
Other Revenue:
Contribution In- lieu of Taxes
Damage Recoveries
Miscellaneous Other Revenue
Total Other Revenue
TOTAL DIRECT REVENUE, OPERATIO
Contingent/ Reserve Transfers, Loa
Transfer From ( To) GF Gen. Cont
Transfer From ( To) GF Working C
Transfer From RDA
Transfer From ( To) Fund Reserve
Transfer From ( To) Cost Reducion
Transfer ( To) Enterprise Fund Res
Transfer From Non- Expendable T
Transfer From Comm. Equip. Res
Transfer From Sports& Open Spac
Transfer From Gas Tax ( 2105, 21
Transfer From Comm. Svcs. HUD
Special Internal
Revenue Enterprise Service
Funds Funds Funds
- 261,957,462 -
- 1,000,000 -
- 14,220 -
- - -
- - -
- - -
- 482,800 3,906,491
- 13,740,125 -
- 625,900 -
- - 1,365,169
- 96,400 -
- 1,469,000 -
- - -
- - -
- - -
- 1,904,388 -
- 127,000 -
678,679 366,000 -
678,679 281,783,295 5,271,660
- - -
- 51,500 8,500
- 55,000 101,540
- 106,500 110,040
4,429,996 299,444,257 5,381,700
- 133,890 -
- - -
- - -
( 13,000) - ( 137,890)
- 27,686,735 -
- 1,670,991 -
- 17,000 -
- - -
- - -
( 745,300) - -
( 486,305) - -
19
Estimated Resources
All Funds
General Capital
Operating Improvement
Revenue Accounts TOTALS Funds Funds
Transfer To Maintenance Districts - ( 657,525) -
Transfer From Trust Funds 1 ,300 1,300 -
Total Contingent/ Reserve Transfers,
Loans and Designations 44,484,042 12,037,696 3,662,700
Resources After Reserve Transfers
Loans and Designations- Operat 4 77,930,260 135,269,329 4,621,332
Enterprise Funds - Capital Projects
Direct Revenue/ Debt Proceeds 3 ,420,000 - -
Beginning Balance 6 ,551,000 - -
Transfer From Building Inspection 3 77,900 - 377,900
Transfer From Electric Utility - - 903,895
Transfer From Water Utility - - 151,785
Transfer ( To) From Cemetery 3 ,300 - 3,300
Transfer From Sewer Utility - - 43,080
Transfer From Solid Waste Enter. 5 04,160 - 59,160
Transfer From Assessment Distric 1 8,000 - 18,000
Loan From GF GC Res 3 8,000 - -
Total Enterprise Funds - Cap. Proj. 1 0,912,360 - 1,557,120
Estimated Beginning Balance 2 ,696,573 - 995,481
TOTAL ESTIMATED RESOURCES $ 4 91,539,193 $ 135,269,329 $ 7,173,933
20
Estimated Resources
All Funds
Revenue Accounts
Transfer To Maintenance Districts
Transfer From Trust Funds
Total Contingent/ Reserve Transfer
Loans and Designations
Resources After Reserve Transfers
Loans and Designations- Operat
Enterprise Funds - Capital Projects
Direct Revenue/ Debt Proceeds
Beginning Balance
Transfer From Building Inspection
Transfer From Electric Utility
Transfer From Water Utility
Transfer ( To) From Cemetery
Transfer From Sewer Utility
Transfer From Solid Waste Enter.
Transfer From Assessment Distric
Loan From GF GC Res
Total Enterprise Funds - Cap. Proj.
Estimated Beginning Balance
TOTAL ESTIMATED RESOURCES
Special Internal
Revenue Enterprise Service
Funds Funds Funds
657,525 - -
- - -
( 587,080) 29,508,616 ( 137,890)
3,842,916 328,952,873 5,243,810
- 3,420,000 -
- 6,551,000 -
- - -
- ( 903,895) -
- ( 151,785) -
- - -
- ( 43,080) -
- 445,000 -
- - -
- 38,000 -
- 9,355,240 -
742,374 - 958,718
$ 4,585,290 $ 338,308,113 $ 6,202,528
21
ESTIMATED RESOURCES
GENERAL OPERATING FUNDS
Fund Number 001 441
Debt Service
Revenue Accounts TOTALS General Fund Fund
Taxes:
Property Tax:
Secured $ 2 2,464,651 $ 2 2,464,651 $ -
Unsecured 1,700,000 1,700,000 -
Subtotal - Property Tax 2 4,164,651 2 4,164,651 -
Sales Tax 4 0,110,000 4 0,110,000 -
Transient Occupancy Tax 9,450,000 9,450,000 -
Franchise Tax 2,912,000 2,912,000 -
Document Transfer Tax 900,000 900,000 -
Total - Taxes 7 7,536,651 7 7,536,651 -
Licenses and Permits:
Business Licenses 814,400 814,400 -
Building Permits 1,858,000 1,858,000 -
Electric Permits 200,000 200,000 -
Plumbing Permits 180,000 180,000 -
Mechanical Permits 110,000 110,000 -
Street Opening Permits 1,500 1,500 -
Misc. Licenses and Permits 100 100 -
Total - Licenses and Permits 3,164,000 3,164,000 -
Fines and Penalties:
Traffic Fines 522,000 522,000 -
California Vehicle Code 190,000 190,000 -
Library Fines 260,000 260,000 -
Collection Charges 500,000 500,000 -
Total - Fines and Penalties 1,472,000 1,472,000 -
Use of Money and Property:
Interest Income 5,426,640 5,301,000 125,640
Rents and Leases 2,644,000 2,644,000 -
Miscellaneous Money and Property 6,000 6,000 -
Total - Money and Property 8,076,640 7,951,000 125,640
Revenue from Other Agencies:
Vehicle License Fee 612,000 612,000 -
Homeowner Tax Relief 190,000 190,000 -
Misc. Revenue from Other Agencies 1,099,000 758,874 340,126
Total - Revenue from Other Agencies 1,901,000 1,560,874 340,126
22
ESTIMATED RESOURCES
GENERAL OPERATING FUNDS
Fund Number 001 441
Debt Service
Revenue Accounts TOTALS General Fund Fund
Charges for Current Services:
Recreation Programs 1,305,790 1,305,790 -
Engineering Fees 181,160 181,160 -
Planning and Zoning Fees 220,000 220,000 -
Inter- department Services 1 1,279,050 1 1,279,050 -
Plan Check and Sign Fees 1,500,000 1,500,000 -
Fire Prevention and Haz Mat Fees 1,400,000 1,400,000 -
Police Monitored Alarm Fees 117,000 117,000 -
Misc. Charges for Current Services 988,000 988,000 -
Total - Charges for Current Services 1 6,991,000 1 6,991,000 -
Other Revenue:
Contribution In- lieu of Taxes 1 3,862,342 1 3,862,342 -
Miscellaneous Other Revenue 228,000 228,000 -
Total - Other Revenue 1 4,090,342 1 4,090,342 -
TOTAL DIRECT REVENUE 1 23,231,633 1 22,765,867 465,766
Contingent / Reserve Transfers and Designations:
Transfer From Working Capital Reserve ( 1,143,710) ( 1,143,710) -
Total - Contingent / Reserve Transfers ( 1,143,710) ( 1,143,710) -
Inter - Fund Transfers:
Transfer ( To) Debt Service - ( 5,899,681) 5,899,681
Transfer From Sports & Open Space Auth. 2,488,145 2,488,145 -
Transfer From RDA 1 0,117,881 1 0,117,881 -
Transfer To Maintenance Districts ( 657,525) ( 657,525) -
Transfer From Comm. Svcs. HUD Programs 486,305 486,305 -
Transfer From Gas Tax ( 2107) 745,300 745,300 -
Transfer From Trust Funds 1,300 1,300 -
Total - Inter- Fund Transfers 13,181,406 7,281,725 5,899,681
TOTAL ESTIMATED RESOURCES $ 135,269,329 $ 128,903,882 $ 6,365,447
23
ESTIMATED RESOURCES
CAPITAL IMPROVEMENT PROJECTS FUNDS *
Fund Number 525 532 535 536
531 533 537 538 539
Streets and General
Revenue Accounts TOTALS Highways Government
Revenue From Other Agencies:
Misc Revenue from Other Agencies $ 6 75,632 $ 600,632 $ 75,000
Charges for Current Services:
Environmental Compliance Fee 1 20,000 - 120,000
Developer Contributions 1 63,000 - 163,000
Total - Charges for Current Services 2 83,000 - 283,000
TOTAL DIRECT REVENUE 9 58,632 600,632 358,000
Contingent / Reserve Transfers:
Transfer From General Fund Capital Projects Res. 3 ,661,400 80,000 3,581,400
Resources After Contingent / Reserve
Transfers and Loans 4,620,032 680,632 3,939,400
Inter - Fund Transfers:
Transfer From Building Inspection Reserve 3 77,900 - 377,900
Transfer From Comm. Internal Service Fund - - -
Transfer From Electric Utility 9 03,895 30,000 873,895
Transfer From Water Utility 1 51,785 - 151,785
Transfer From Sewer Utility 4 3,080 - 43,080
Transfer From Cemetery 3 ,300 - 3,300
Transfer From Solid Waste Utility 5 9,160 - 59,160
Transfer From RDA 1 ,300 - 1,300
Transfer From Assessment District 1 8,000 18,000 -
Total - Inter- Fund Transfers 1 ,558,420 48,000 1,510,420
Estimated Beginning Balance 9 95,481 550,000 445,481
TOTAL ESTIMATED RESOURCES $ 7 ,173,933 $ 1,278,632 $ 5,895,301
NOTE* Certain Streets and Highways Capital Improvement Funds financed by restricted revenue
sources can be found in the Special Revenue Funds section ( Funds 521, 522, 523, 524).
Additionally, Enterprise Fund Capital Improvement Projects can be found in the Enterprise
Fund section ( Funds 534, 591, 592, 593, 594, 595, 597).
24
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25
ESTIMATED RESOURCES
SPECIAL REVENUE FUNDS
Fund Number 025 026 041
Maintenance Recreation
Revenue Accounts TOTALS Districts Programs
Use of Money and Property:
Interest Income $ - $ - $ -
Total - Use of Money and Property - - -
Revenue from Other Agencies:
Community Development Block Grant 1,106,615 - -
HOME Program 618,591 - -
Gas Tax ( 2105, 2106, 2107, 2107.5, 2126) 1,950,000 - -
Misc. Revenue from Other Agencies 76,111 - 76,111
Total - Revenue from Other Agencies 3,751,317 - 76,111
Charges for Current Services:
Misc. Charges for Current Srvcs. 678,679 678,679 -
Total - Charges for Current Services 678,679 678,679 -
TOTAL DIRECT REVENUE 4,429,996 678,679 76,111
Inter - Fund Transfers:
Transfer From ( To) Fund Reserves ( 13,000) ( 13,000) -
Transfer From ( To) General Fund ( 574,080) 657,525 -
Total - Inter- Fund Transfers ( 587,080) 644,525 -
Estimated Beginning Balance 742,374 109,543 -
TOTAL ESTIMATED RESOURCES $ 4,585,290 $ 1,432,747 $ 76,111
-
26
ESTIMATED RESOURCES
SPECIAL REVENUE FUNDS
Fund Number
Revenue Accounts
Use of Money and Property:
Interest Income
Total - Use of Money and Property
Revenue from Other Agencies:
Community Development Block Grant
HOME Program
Gas Tax ( 2105, 2106, 2107, 2107.5, 2126)
Misc. Revenue from Other Agencies
Total - Revenue from Other Agencies
Charges for Current Services:
Misc. Charges for Current Srvcs.
Total - Charges for Current Services
TOTAL DIRECT REVENUE
Inter - Fund Transfers:
Transfer From ( To) Fund Reserves
Transfer From ( To) General Fund
Total - Inter- Fund Transfers
Estimated Beginning Balance
TOTAL ESTIMATED RESOURCES
562 521 522
524
Community Streets and
Services Highways
HUD Program Funds
$ - $ -
- -
1,106,615 -
618,591 -
- 1,950,000
- -
1,725,206 1,950,000
- -
- -
1,725,206 1,950,000
- -
( 486,305) ( 745,300)
( 486,305) ( 745,300)
37,131 595,700
$ 1,276,032 $ 1,800,400
27
ESTIMATED RESOUCES
ENTERPRISE FUNDS
Fund Number 091 491 092 492
534 591 592
Electric Water
Revenue Accounts TOTALS Utility Utility
Use of Money and Property:
Interest Income $ 16,503,462 $ 14,961,762 $ 5 25,000
Rents & Leases 336,000 262,500 7 3,500
Total - Money and Property 16,839,462 15,224,262 5 98,500
Revenue from Other Agencies:
Misc. Revenue from Other Agencies 715,000 - 1 00,000
Total - Revenue from Other Agencies 715,000 - 1 00,000
Charges for Current Services:
Customer Service Charges 261,957,462 228,255,062 2 0,199,400
Connection Charges 1,000,000 - -
Sewer Charges 14,220 - -
Refuse Collection Charges 13,740,125 - -
Clean- up Campaign Charges 1,469,000 - -
Household Hazardous Waste Charges 127,000 - -
Inter- department Services 482,800 410,000 -
Sales - Facilities, Labor & Other 625,900 - -
Solar Installation and Service Charge 96,400 - 9 6,400
Sales - Bulk Power, Steam Sales, Gas Wells 1,904,388 1,904,388 -
Miscellaneous Charges for Current Services 366,000 - 3 65,000
Total - Charges for Current Services 281,783,295 230,569,450 2 0,660,800
Other Revenue:
Damage Recoveries 51,500 50,000 -
Miscellaneous Other Revenue 55,000 50,000 -
Total - Other Revenue 106,500 100,000 -
TOTAL DIRECT REVENUE, OPERATING 299,444,257 245,893,712 2 1,359,300
Contingent / Reserve Transfers and Loan:
Transfers/ Loan From General Fund Gen Cont Rese 133,890 - -
Debt Service Coverage Transfer - - -
Transfer From Non- Expendable Trust Funds 17,000 - -
Transfer From ( To) Electric Cost Reduction Fund 27,686,735 27,686,735 -
Transfer From ( To) Other Funds - - 5 25,000
Transfer From ( To) Enterprise Fund Reserves 1,670,991 - ( 831,612)
Total - Contingent / Reserve Transfers and Lo 29,508,616 27,686,735 ( 306,612)
TOTAL ESTIMATED RESOURCES, OPERATING 328,952,873 273,580,447 2 1,052,688
Direct Revenue/ Debt Proceeds - Capital Projects 3,420,000 3,000,000 4 20,000
Transfer and Loans ( To) From Other Funds ( 615,760) ( 903,895) ( 151,785)
Capital Projects Beginning Balance 6,551,000 4,600,000 1