New Donald Von Raesfeld Power Plant
The new DVR Power Plant was launched this
spring as the first plant to go on the power grid in
California since August 2003. The plant adds 147
megawatts of power to the electricity generated locally
by Silicon Valley Power, the City’s electric utility.
Providing one- third of the City’s power needs,
the new plant helps to ensure reliable energy
at reasonable prices for Santa Clara customers.
A tour during the dedication of the
DVR Power Plant June 15, 2005.
As adopted
June 7, 2005
City of
Santa Clara
Annual Budget
2005- 2006
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 2005- 2006........................................................................ 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
2005- 2006 and 2004- 05 Budget - Summary of Estimated Resources.................... 7
2005- 2006 and 2004- 05 Budget - Summary of Appropriations .............................. 8
Three Year Trend by Revenue and Appropriation Categories................................ 9
2005- 06 Budget by Fund and Prior Years’ Appropriations/ Expenditures................ 10
Revenue Summary – All Funds FY 2002- 03 Through FY 2005- 06 ........................ 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
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.
ii
General Administration .......................................................................................... 85
INFORMATION TECHNOLOGY .................................................................................... 91
Applications Systems............................................................................................. 95
Network Computer Support.................................................................................... 98
Contract Technology Support ................................................................................ 101
Telecommunication Services ................................................................................. 104
HUMAN RESOURCES................................................................................................... 107
Benefits, Compensation and Services ................................................................... 111
Recruitment, Selection and Classification .............................................................. 115
FINANCE ....................................................................................................................... 119
Administrative Services.......................................................................................... 123
Financial Services.................................................................................................. 126
Accounting Services .............................................................................................. 131
Municipal Services................................................................................................. 136
Computer Services ................................................................................................ 143
Debt Service .......................................................................................................... 145
PARKS AND RECREATION.......................................................................................... 147
Parks and Playgrounds.......................................................................................... 151
Recreation ............................................................................................................. 155
Special Recreation Programs - Senior Nutrition Program ...................................... 162
Cemetery............................................................................................................... 164
LIBRARY ....................................................................................................................... 169
Administration........................................................................................................ 173
Youth & Extension Services................................................................................... 176
Adult Services........................................................................................................ 180
Collection Services ................................................................................................ 185
Support Services ................................................................................................... 188
PLANNING AND INSPECTION ..................................................................................... 191
Planning................................................................................................................. 195
Building Inspection................................................................................................. 199
Housing and Community Services ......................................................................... 203
PUBLIC WORKS/ ENGINEERING
Engineering .......................................................................................................... 207
Support Services ............................................................................................. 211
Design ............................................................................................................. 215
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.
iii
Land & Property Development......................................................................... 219
Field Services.................................................................................................. 223
Traffic .............................................................................................................. 227
Purchasing ........................................................................................................... 233
Building Maintenance.......................................................................................... 240
STREET/ AUTOMOTIVE SERVICES.............................................................................. 247
Street Maintenance ......................................................................................... 252
Storm Drain ..................................................................................................... 258
Parkways & Boulevards................................................................................... 262
Solid Waste ..................................................................................................... 266
Urban Renewal Parking District ....................................................................... 272
Convention Center Maintenance District.......................................................... 275
Automotive Services ........................................................................................... 278
Automotive Services ........................................................................................ 281
Equipment Pool Revolving............................................................................... 284
POLICE ........................................................................................................................ 287
Field Operations .................................................................................................... 292
Investigations......................................................................................................... 296
Administrative Services.......................................................................................... 299
Technical Services................................................................................................. 306
Communications Equipment Acquisition ................................................................ 309
FIRE…… ....................................................................................................................... 311
Protection .............................................................................................................. 315
Prevention ............................................................................................................. 318
Training.................................................................................................................. 322
Hazardous Materials .............................................................................................. 325
Incremental EMS Costs ......................................................................................... 328
ELECTRIC UTILITY ....................................................................................................... 331
Administrative Services.......................................................................................... 336
Customer Service & Marketing .............................................................................. 339
Resource Management.......................................................................................... 342
Energy Distribution ................................................................................................ 345
WATER AND SEWER UTILITIES.................................................................................. 349
Water Engineering ................................................................................................. 354
Water Construction, Maintenance & Operations .................................................... 358
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.
iv
Sewer .................................................................................................................... 362
Solar Construction & Maintenance......................................................................... 367
Recycled Water Construction & Maintenance ........................................................ 370
HUD PROGRAMS
Community Development Block Grant Allocation ................................................... 373
Home Program....................................................................................................... 374
REDEVELOPMENT AGENCY ....................................................................................... 375
SPORTS AND OPEN SPACE AUTHORITY .................................................................. 377
SANTA CLARA CONVENTION CENTER & CONVENTION/ VISITOR'S BUREAU
Convention Center................................................................................................. 379
Convention/ Visitor's Bureau................................................................................... 383
ADDITIONAL INFORMATION
Budgets and Accounting Summary ........................................................................ 389
Budget Calendar.................................................................................................... 393
REGIONAL COMPARISON
Per Capita Revenue Comparison........................................................................... 395
CAPITAL IMPROVEMENT PROJECT BUDGET
2005- 2006 Capital Improvement Project ( CIP) Budget .......................................... 399
Index by Capital Project Theme ............................................................................. 400
FIVE- YEAR FINANCIAL PLAN
2006/ 7 – 2011/ 12 Financial Plan............................................................................ 403
APPROPRIATIONS LIMIT
Appropriations Limit for Fiscal Year 2005- 2006 ..................................................... 441
GLOSSARY ................................................................................................................... 447
ACRONYMS .................................................................................................................. 453
INDEX ........................................................................................................................ 455
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 7, 2005
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. The regional and local
economic climate began to show signs of a slow recovery during the fiscal year 2004- 05, and continues
to show signs of a slow recovery for the foreseeable future. It is expected that the remainder of 2005
will continue to show some moderate improvement but the local economic recovery will lag the rest of
the San Francisco Bay Area in its recovery. As discussed at the Study Session for the Five- Year
Financial Plan and as reflected in the adopted fiscal year 2005- 06 annual budget, the City faces an
unprecedented long- term financial challenge including its fourth straight year of deficits in the General
Operating Fund. Given these projections, staff will continue to identify long- term measures that can be
taken to address the City’s financial situation. It will take a sustained effort over several budget cycles to
successfully resolve these issues.
A positive approach has been taken, keeping in mind that even with expenditure and some service
reductions, City program services will continue and new facilities will open on schedule. This budget
reflects appropriation requests consistent with Council Principles and Priorities, the projected economic
climate, projected revenue growth, and additional measures taken to flow additional sources of funds to
the General Fund. A balanced approach was used in preparing this budget. No single approach was
relied on to bridge the continuing budget gap, but use of the Working Capital Reserve will again be
necessary to balance this year’s budget, although the amount of reserves being used has been
significantly reduced from previous levels. A combination of measures have been implemented and/ or
continued this year: holding operating budgets flat which incorporates the last several years of service
and expenditure reductions, fee increases, additional lease revenues from Redevelopment Agency
( RDA), use of additional cost recovery from non- General Fund sources, delay or elimination of capital
projects and use of City reserves. It also reflects the efforts of departments to further contain costs in
light of the struggling economy. Many challenges lie ahead for the City in the 2005- 06 fiscal year, as
the State seeks to resolve its budget deficit away from cities, the North of Bayshore area continues to
grow, and land use and the maintenance and/ or expansion of public facilities remain important City
issues. The adopted budget for the 2005- 06 fiscal year addresses these issues as well as other regular
programs and service needs of the City. The City will continue to inform the community about these
issues and how they are being addressed.
The total City budget of $ 449.8 million for operations and capital improvement projects represents a
0.64% increase compared to the fiscal year 2004- 05 adopted budget. The total operating budget of
$ 417.4 million for all funds, including the General Fund and Utilities, increased by $ 32.7 million or
8.50% over the prior fiscal year. This is primarily due to increases in the cost of energy in the Electric
Utility and benefit increases for pension costs across all funds. In addition, resource and production
costs have increased in the Water and Water Recycling Utilities and debt service payments have
increased in the Electric Utility due to the debt issued in 2003- 04 for the Donald Von Raesfeld ( DVR)
Power Plant. The figure also reflects the increased cost for salaries and retirement benefits as defined
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
I I
in the current Memoranda of Understanding for the various represented employee units. These costs
are partially offset by the additional revenue from RDA lease payments made to the General Fund
through The Great America Theme Park lease and other land leases, additional cost recovery for the
General Fund for services rendered to the RDA and the Electric Utility, continuation of the managed
hiring freeze and elimination of some positions in the General Fund. To balance the General Fund
portion of the budget, $ 2.1 million of the Emergency Reserves are used.
The City’s General Operating Fund has been the area most impacted by the economic downturn. This
fund covers costs related to Public Safety, Libraries, Planning, Public Works, Parks & Recreation and
other service areas. Strong efforts were made by City Departments to “ hold the line” on General Fund
expenses. The General Operating Fund appropriations will increase 1.56% over the prior fiscal year,
most of which is due to increasing pension costs and software maintenance costs. The City’s adopted
Capital Improvement Project ( CIP) budget of $ 32.4 million for fiscal year 2005- 06 represents a $ 29.8
million or 47.9% decrease compared to the prior year. Although a year- to- year comparison for the CIP
budget is presented, capital improvement projects are periodic, and reflect scheduled or maturing need
to maintain, refurbish, and/ or replace City roads, buildings and other infrastructure facilities. In light of
the City’s current fiscal situation, funding requests were limited to the completion of existing projects or
critical maintenance needs. New projects are being deferred to future years whenever possible. The
projects included in this adopted budget are the result of a formal review process by the City Manager,
Department Heads and staff for consistency with the City’s goals. In addition, the Public Works
Department reviewed all open projects with staff to determine which projects can be downsized or
deferred and their recommendations have been incorporated into the adopted CIP budget.
Table 1
Adopted Adopted Increase Percent
Fund 2005 - 2006 2004- 2005 ( Decrease) Change
General Operating Funds ( w/ Debt) $ 125,602,421 $ 123,670,913 $ 1,931,508 1.56%
Special Revenue Funds 1,434,809 1,430,449 4,360 0.30%
Enterprise Funds 284,033,350 253,639,173 30,394,177 11.98%
Internal Service Funds 6,336,547 5,970,904 365,643 6.12%
Operating Budget 417,407,127 384,711,439 32,695,688 8.50%
Capital Projects Funds 32,417,969 62,246,307 ( 29,828,338) - 47.92%
TOTAL CITY BUDGET $ 449,825,096 $ 446,957,746 $ 2,867,350 0.64%
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 2005- 06
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, may be turning the corner and
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. The consensus
economic opinion continues to be one in which the regional economy will lag the national economic
recovery, with the Silicon Valley’s recovery being particularly slow.
The City is currently projecting fiscal year- end 2004- 05 revenues and expenditures to result in a $ 9.4
million deficit, to be funded from the use of working capital reserves. Revenues and other sources of
funds are projected at $ 113.3 million, down $ 4.0 million from the budget of $ 117.3 million, or 3.4%
below budget. The major sources of reduced revenues are interest earnings, property and vehicle
license taxes, and transfers in from other funds. Fiscal year 2004- 05 estimated revenues from two
other major sources including sales taxes and transient occupancy tax are slightly above budget.
For 2005- 06 and forward, the State budget crisis further complicates the City’s financial picture given
the uncertainty of how the State’s long- term budget challenges will be resolved. The State still faces an
on going structural deficit of approximately $ 4.5 billion for fiscal year 2005- 06 according to a recent
report from the Governor’s office. In fiscal year 2004- 05 and fiscal year 2005- 06, the Governor’s budget
has resulted in additional State takeaways from the City including $ 2.2 million in General Fund property
taxes and $ 2.9 million in Redevelopment Agency property tax increment to be shifted to the State as
part of the ERAF ( Education Revenue Augmentation Fund). These are incorporated in the 2005- 06
budget, in addition to the $ 3.8 million baseline ERAF that has been in place since 1992- 93, is also
included in the Five Year Plan. These reallocations of local government revenues by the State of
California have affected two major sources of revenue, property taxes and vehicle license fees.
Fiscal year 2005- 06 estimated revenues across all funds are expected to be up 2.95%. The Operating
Budget ( all funds except Capital, RDA and SOSA) is expected to be up 8.5% over last year’s budgeted
level. This revenue estimate is based on the most recent State, regional and local economic data, other
resources applied to the General Fund this year, including increased lease revenues and increased cost
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
IV
recovery from non- General Fund agencies for services rendered. 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 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 general operating fund appropriations for salaries and benefits for fiscal year 2005- 06 reflect
an increase of 1.66%, compared to the fiscal year 2004- 05 budget. This reflects the increases due to
pension costs as defined in the current Memoranda of Understanding ( MOU’s) for the various
represented groups. These increased costs are offset by the continuation of the managed hiring freeze,
elimination of some General Fund positions that are vacant due to resignations and retirements, and
pension savings from a “ Fresh Start” approach to amortizing unfunded pension liabilities over 30 years
instead of 20 years. Other adopted operating appropriations for fiscal year 2005- 06 are essentially flat
( up $ 385,760 or 1.3%) compared to the prior fiscal year. This is due primarily to contractual agreements
related to licensing and maintenance of technology upgrades such as the FHRMS project and
unanticipated increases in operating costs such as fuel and heating/ air conditioning at several facilities.
This is offset by declines in costs in other departments such as library services and planning.
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’s 2005- 06 adopted CIP budget of $ 32.4 million, which includes utilities and general government
projects and programs, decreased by 47.9% or approximately $ 29.8 million from last year. These
include: replacement of Fire Station 4, relocation of the City’s Dog Park, proposed construction of a
photovoltaic system over a City- owned parking structure and a variety of water/ sewer and streets
programs.
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 2005- 06 adopted budget under the theme categories are presented below. In addition
to this discussion, a summary of the net new and/ or deleted budgeted positions is presented on page XI
in this letter.
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 under way before the
economic decline. The fiscal year 2005- 06 operating budget includes projected costs for operating and
maintaining these facilities.
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
V
Public Facilities
Parks & Recreation: Funding of $ 225 thousand is included to resurface tennis courts and other sports
courts, continue restoration work at the Ulistac Natural Area, and perform miscellaneous refurbishments
at various park facilities. The adopted budget also includes $ 400 thousand in funding to relocate the
City Dog Park to a new location and $ 180 thousand to construct restrooms and provide materials for
building renovations at the former Curtis School site. Increased fees of approximately $ 65,000 are also
budgeted. The joint City- School theater, Mission City Center for the Performing Arts, has opened, and
is fully functional. The impact on the City of operating this theater is approximately $ 100,000 per year.
General Government: The 2005- 06 budget includes funding of $ 890,000 in support of Silicon Valley
Animal Control Authority programs. The City expects the cost of these services to increase another
$ 100,000 in 2006- 07 when the Authority becomes fully operational.
Library Programs: By the Spring of 2005, the new Central Park Library had been open a full year. The
2005- 06 budget reflects the experience of operating the library at full staffing and costs for a full year.
Funding for maintenance and utilities costs have increased to reflect a full year 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 open three hours
later for two mornings a week. Central Park Library is 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.
The City is phasing in the rebuilding of its Fire Stations over several years as follows:
• Fire Station 6, adjacent to Rivermark, is under construction and is scheduled for final completion in
June of 2005. The relocated Fire Station 6 is tentatively scheduled to open in July 2005. This Fire
Station was fully funded in the 2003- 04 CIP Budget and will be completed under budget.
• The budgeting for Fire Stations 3 and 4 is combined into a single Capital Improvement Project, and
was partially funded in 2003- 04 and 2004- 05. The 2005- 06 CIP Budget includes $ 2.75 million, which
will complete the funding for both of these stations. These Fire Stations will be built entirely with
cash financing.
• The contract for demolition and construction of Fire Station 3 was awarded in March 2005, for
$ 2.051 million. Demolition and construction is expected to begin in June 2005. Completion for this
replacement Fire Station is projected for March 2006. This station will replace the current 45- year
old structure.
• Fire Station 4 is to be rebuilt in the same 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 early
2006.
Other Service Reductions: Service reductions included in 2004- 05 will be continued:
• Continued managed hiring freeze, at an estimated cost savings of $ 2.1 million for 2005- 06.
• Elimination of supplemental street sweeping during the year, while maintaining the standard street
sweeping schedule.
• Sidewalk repairs may take longer due to reductions in staffing. Santa Clara remains one of the few
cities to perform this service free of charge to its citizens.
• Reduced floor waxing at City facilities to once per year. Starting in 2005- 06 the removal of office
trash at individual workstations has been eliminated from the custodial contract.
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
V I
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. Among the programs changed to biennial and
hosted in 2004- 05 were Public Service Recognition Week and a City- wide recognition event for Boards
and Commissions. The 2005- 06 budget year will include the now biennial Volunteer Recognition Event
and Public Safety Providers Week, last held in 2003- 04. The City Hall Open House and the Carousel to
Coaster Run/ Walk were discontinued.
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. Some of the significant systems issues and
changes in appropriations in this budget include the following:
Information Technology Department ( IT)
The adopted 2005- 06 IT budget has been changed from the prior fiscal year to reflect shifting the
annual costs associated with the new FHRMS financial system to the Finance Department, now that the
project is completed. The adopted CIP budget includes $ 500 thousand in essential new funding for
various projects to provide basic maintenance and enhancement hardware for the City’s network
infrastructure. Over a four to five year period, computers, network equipment and cabling and
application servers will be replaced. The phased replacement is essential to sustain the City’s
technological systems.
Financial Human Resources Management System ( FHRMS Project)
The City has completed its implementation of an enterprise- wide system for personnel, payroll and
general ledger accounting, known as FHRMS. Each phase of the four- phase project was brought in on
schedule and under budget. During 2005- 06, the operating budget of the General Fund will reflect the
increased cost of $ 260,800 per year, mentioned above, for renewal of licenses and software
maintenance costs. In addition, in 2006- 07, the FHRMS contract project staff will have completed their
assignments; on- going maintenance of the system will require two staff, whose salaries, benefits,
training and supplies are estimated to require funding of approximately $ 250,000 on an annual basis.
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 fifth year of the five- year Consolidated Plan for using federal CDBG and HOME
funds. For last year's activity reporting to HUD, it was reported that 3,713 households received some form
of housing assistance over the four- year duration of the current Consolidated Plan. This number takes into
account all affordable housing activities assisted by either federal CDBG and HOME funds or the RDA
Affordable Housing Fund. This includes all housing services/ assistance programs and housing
development projects. Approximately 928 households per year, on average, are assisted in some form or
another by the City and RDA affordable housing programs. These programs support non- profit agencies
such as Catholic Charities, Council on Aging, Emergency Housing Consortium ( EHC), Next Door,
Project Match, Project Sentinel, Operation Brown Bag, the Santa Clara Senior Center nutrition program,
Outreach and Escort.
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
V II
The CIP budget includes $ 1.4 million in funding for various below market rate purchase and rental
programs. These programs assist qualified buyers or renters in acquiring affordable housing. The CIP
budget also includes $ 2.2 million for the purchase of the site of the old Fire Station 6 for affordable
housing. The adopted CIP budget has enough funding from 2003- 04 to operate the First Time Home
Buyer’s Financing Program in 2005- 06. An additional $ 1 million is included in the Five Year Plan for
2006- 07.
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. In addition to the $ 17.45 million Convention Center Ballroom Expansion
discussed below in Economic Development, the adopted budget includes $ 5.0 million in RDA funds to
extend the San Tomas Aquino Creek Trail. The current portion from Agnew Rd to Scott Blvd is under
construction; design for the third portion from Scott Blvd to Monroe Street is under design. Future
budgets will include additional funding requests as the trail is extended to Stevens Creek Blvd.
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:
Ballroom Expansion:
The total cost of the expansion is budgeted at $ 17.45 million. An economic study performed by an
outside consultant has concluded that a new ballroom will generate sufficient revenue to cover the cost
of operations. The 2005- 06 budget of $ 14.2 million is comprised of $ 6.7 million of bond proceeds and
$ 7.5 million in tax increment for the construction of the project. This completes the funding of the
project which has been planned for the past three years. Construction is expected to be completed in
approximately 18 months.
Traffic Mitigation
Traffic mitigation projects include $ 2.0 million to fund intersection improvements at El Camino Real and
Lafayette Street, El Camino Real and San Tomas Expressway and Kiely Boulevard and Homestead
Road. In addition, $ 200 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 $ 219.4 million,
operating expenses of $ 233.5 million and capital expenses of $ 12.2 million. The operating budget has
increased 14.8% due primarily to the loss of Western Area Power Association fuel contracts, the
replacement of which has been partially offset by construction of the Donald Von Raesfeld ( DVR)
energy plant, but not completely. The DVR energy plant opened for commercial operation in March
2005. Most of the increase in the utility’s budget for 2005- 06 is due to an increase of $ 23.8 in costs for
fuel and other chemicals to operate the DVR plant.
An analysis of the impact of 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 2005- 06. 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
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
VI II
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 2005- 06 budget includes a funding of $ 500 thousand in the capital budget and $ 4.9 million in
the operating budget to cover programs.
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:
$ 572 thousand in additional funding to retrofit the City’s existing water storage tanks to meet the current
seismic safety standards. This is the sixth year of a multi- year program to retrofit or replace the City’s
storage tanks. Work Order Projects total $ 889 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.
The Sewer Utility CIP Budget includes a request of $ 1.3 million to fund the City’s share of capital
improvements at the San Jose/ Santa Clara Water Pollution Control Plant. This is the third of several
requests to be brought to Council over the next several years as the Water Pollution Control Plant
undergoes a major capital improvement program.
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.
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
IX
Table 2
TOTAL BUDGET
ESTIMATED RESOURCES AND APPROPRIATION CATEGORIES
Adopted Adopted Increase Percent
ESTIMATED RESOURCES 2005- 2006 2004- 2005 ( Decrease) Change
Property Tax $ 20,115,000 $ 16,271,000 $ 3,844,000 23.62%
Sales Tax 37,053,000 35,239,000 1,814,000 5.15%
Transient Occupancy Tax 7,904,000 7,106,000 798,000 11.23%
Other Taxes 3,227,000 3,043,000 184,000 6.05%
Licenses and Permits 3,132,200 3,045,200 87,000 2.86%
Fines and Penalties 1,307,730 1,359,800 ( 52,070) - 3.83%
Interest 23,452,505 25,872,881 ( 2,420,376) - 9.35%
Other Use of Money and Property 11,643,200 8,490,372 3,152,828 37.13%
Revenue from Other Agencies 7,280,227 10,971,220 ( 3,690,993) - 33.64%
Charges for Current Services 274,518,559 263,721,064 10,797,495 4.09%
Contribution In- Lieu 12,165,295 12,179,487 ( 14,192) - 0.12%
Other Revenue/ Debt Proceeds 437,540 3,402,540 ( 2,965,000) - 87.14%
Transfers From ( To) Reserves 29,943,198 41,656,556 ( 11,713,358) - 28.12%
Interfund Transfer 4,596,036 4,243,223 352,813 8.31%
Estimated Beginning Balance 13,049,606 10,356,403 2,693,203 26.01%
Total Estimated Resources $ 449,825,096 $ 446,957,746 $ 2,867,350 0.64%
Adopted Adopted Increase Percent
APPROPRIATIONS 2005- 2006 2004- 2005 ( Decrease) Change
Salaries and Benefits $ 123,805,161 $ 121,192,005 $ 2,613,156 2.16%
Other Operating Expenditures 46,666,053 43,982,484 2,683,569 6.10%
Resource and Production 188,411,635 169,994,166 18,417,469 10.83%
Contribution In- lieu & Franchise Fees 12,570,095 12,561,487 8,608 0.07%
Interfund Services 16,475,498 12,918,296 3,557,202 27.54%
Debt Service 29,478,685 24,063,001 5,415,684 22.51%
Operating Budget 417,407,127 384,711,439 32,695,688 8.50%
Capital Improvement Projects Budget 32,417,969 62,246,307 ( 29,828,338) - 47.92%
Total Appropriations $ 449,825,096 $ 446,957,746 $ 2,867,350 0.64%
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 Fund. These
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
X
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
Fund follows:
Property Tax
Property tax revenue for fiscal year 2005- 06 is projected at $ 20.12 million, even with the 2004- 05
projected amount. Major factors contributing to this are: 1) a transfer in fiscal year 2005- 06 of $ 2.2
million in General Fund property taxes to the State Educational Revenue Augmentation Fund, and 2) a
2% increase in taxes due to assessed values increasing, but this amount is offset by a $ 300 thousand
reduction in county property tax in lieu of motor vehicle back fill.
This is partially offset by the continued addition of Rivermark property to the City’s property tax base
and the strong upward trend in the re- assessment of residential properties to market value upon the
sale of properties in the City
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 2005- 06 is projected at $ 37.05 million with
an increase of 3.5%, compared to last year’s projected revenue of $ 35.8 million. This figure reflects an
improvement in the economy, although lagging the recovery in the rest of the San Francisco Bay area
and the 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 $ 7.9 million for fiscal year 2005- 06, an
increase of 4.0% compared to the 2004- 05 projection. This increase is the direct result of the slow
recovery and its impact on business travel.
Interest Income
Total interest income is projected to decrease by $ 2.4 million in fiscal year 2005- 06. The General Fund
is expected to show a $ 713 thousand decrease when compared to the 2004- 05 budget. The decrease
in General Fund interest income can be attributed to a smaller investment portfolio caused by lower
reserve levels and a decrease in portfolio return in 2004- 05. 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.
Contribution In- lieu of Taxes ( CLT)
In accordance with the City Charter, the City's enterprise funds pay a maximum of five percent ( 5%) of
their gross revenue as CLT to the General Fund. The Electric, Water, Sewer and Water Recycling
Utilities are the four enterprise funds that pay CLT. For fiscal year 2005- 06, CLT is projected to be
$ 12.2 million, down $ 14,192, or 0.11% compared to 2004- 05 projection. This figure reflects loss of part
of the baseline revenues.
APPROPRIATIONS
The significant appropriation changes in the fiscal year 2005- 06 operating budget compared to last year
are in the following categories:
• Salaries, Wages and Benefits
• Public Safety
• Goods and Services
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
X I
Salaries, Wages and Benefits
The expenditure category for salaries, wages and benefits across all funds in the 2005- 06 adopted
budget increased by 2.16% over the 2004- 05 adopted budget. In the General Fund, this category
increased by 1.66%. The increase is due primarily to the rise in the costs for retirement benefits. Per
the current Memoranda of Understanding, most bargaining units will be taking a reduction in salary to
cover the increase in retirement costs in July 2005. The salary and benefit figure also reflects the
continuation of the managed hiring freeze.
Since 2003- 04, a total of 33.75 FTE’s have been deleted or frozen from the budget. With the exception
of one position in the Auto Services Internal Service Fund, all of the frozen or deleted positions were
funded in the General Fund. All of these vacant positions are the result of retirements and resignations;
none have resulted from layoffs. The General Fund positions are summarized below and details of the
actions taken during 2004- 05 are presented below.
Table 3
Positions Deleted/ Frozen 2003- 2005 ( General Fund)
Positions Deleted FTE’s ($
and FTE taken out
of budget)
Frozen FTE’s ($
taken out, but FTE
left in budget)
Totals
2003- 04 6.00 8.00 14.00
2004- 05 5.83 8.75 14.58
2005- 06 2.00 2.17 4.17
Total 13.83 18.92 32.75
Budget Impact $ 1,086,541 savings $ 1,906,826 savings $ 2,993,367 savings
The adopted 2005- 06 budget “ freezes” an additional 2.17 positions and deletes 2.0 positions in the
General Fund. The only added position request is for a Water Treatment Technician, to comply with the
Department of Health Services regulations for the new water treatment facilities at two water wells for
the Bayshore North area. This position will be funded out of the Water Fund, and does not impact the
General Fund. Savings of $ 2.99 million will accrue to the City in 2005- 06, as these positions will be
kept vacant.
In addition to positions deleted and the identified frozen positions cited above, an additional program -
the City’s Managed Hiring Freeze program - has produced additional savings over the past two years.
This program was implemented in order to allow additional vacancies, not identifiable at this time, and
which occur with normal turnover, to be held open for various periods of time. The program will
continue in 2005- 06 and is projected to save the City $ 2.1 million for the year for the General Fund.
This savings has been factored into the budgeted expenses for the General Fund. Table 4 below
includes information about positions and savings over this time period. It must be noted that the time of
vacancy for the positions varies from a few weeks to the entire year, and the savings resulting from
those vacancies reflects this time. An additional 52 non- General Fund positions generated savings for
the Enterprise Utilities, and staff monitors these savings separately.
Table 4
Managed Hiring Freeze 2003- 2005 ( General Fund)
Positions Number of Positions Savings
2003- 04 70 positions $ 2.2 million
2004- 05 57 positions $ 2.4 million
2005- 06 Unknown at this time Projected $ 2.1 million
Total Projected $ 6.7 million
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
X II
Position Changes for Fiscal Year 2005- 06: The total full time benefited employee count is 1,012.92.
The Summary of Regular Personnel Allocation by Department on page 44 provides more detail of the
positions included in the 2005- 06 Annual Budget. The following table shows the position changes for
2005- 06. A total of 2.0 staff positions are deleted as indicated in the table. One new FTE will be added
in the Water Fund, the Water Treatment Technician discussed above, due to increased facilities and the
regulations requiring adequate monitoring at expanded facilities. In addition to deletions and additions,
2.17 new positions will frozen for the year. Those positions are described below, but not included in the
table.
Communications: 1.0 FTE Director of Communications was eliminated through attrition and the
department was reorganized for increased efficiency. This function was subdivided among four
departments. Police will manage Dispatch, the City Manager’s office will manage Video Services and
Cable Channel 15, the Fire Department will manage the phones at the Emergency Operations Center
and IT will manage the phone and cable franchise services elsewhere in the City.
Finance: 1.0 FTE Staff Aide II position was eliminated.
Water Treatment: 1.0 FTE Water Treatment Technician was added to provide staffing at expanded
facilities.
Finance: 1.0 FTE Accounting Manager position is frozen for 2005- 06.
Engineering: Public Works Inspector position is frozen at two- thirds of Full Time Equivalent ( FTE).
Library: 1.0 FTE City Librarian position is frozen for six months.
Table 4
Schedule of Added/ Deleted Positions
Department Position Added Deleted
Net
New
General Operating Funds
Finance Staff Aide II - 1.00 ( 1.00)
Communications Communications Director - 1.00 ( 1.00)
Subtotal General Operating Funds - 2.00 ( 2.00)
Water Water Treatment Technician 1.00 - 1.00
Total Net New ( Reduced) Positions 1.00 2.00 ( 1.00)
Public Safety
The high level service that the citizens of Santa Clara have come to expect in Public Safety will
continue to be maintained in these critical areas. The City will continue to operate all ten Fire Stations
and maintain its current level of police emergency services. Both the Police Department and Fire
Department budgets are essentially the same as last year’s.
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 2005- 06 fiscal year are consistent with contractual cost of living
adjustments for private contractors, implementation of mandated programs, and planned service cost
recovery adjustments.
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
XI II
For the Electric Utility, since the de- regulation in the industry, the City has not had any rate increases,
unless state- mandated, since 1993. In addition, there will be no increases for electric charges for
calendar year 2005. Staff will evaluate the revenues and expenses of the Electric Utility during the
2005- 06 fiscal year and return to City Council with recommendations for the future.
There will be selective increases in water, sewer and solid waste charges in 2005- 06 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, a 4% rate increase for fiscal
year 2005- 06 for water and recycled water is included in the adopted budget. The budget also includes
a sewer rate increase of 6% to fund a major capital improvement program at the San Jose/ Santa Clara
Water Pollution Control Plant. These increases were approved by City Council on May 17, 2005, and
will be effective July 1, 2005. In addition, a 6% sewer rate increase was also approved for the next
fiscal year, 2006- 07.
The Solid Waste Utility has been increasing fees 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 Fund from
$ 2.03 million to approximately $ 164 thousand, a reduction of $ 1.865 million. This has acted to make
these programs more self- sustaining and less dependent on the subsidy from the General Fund. For
2005- 06, the Single Family rate for basic service for the collection and disposal of garbage will increase
by $ 0.15 per month. The charge for Clean Green is scheduled to increase by $ 0.50 per month and the
charge for the Annual Clean Up Campaign is scheduled to increase by $ 0.50 per month. These
increases result from 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. In addition, the
increases in Clean Green and the Annual Clean Up Campaign bring those rates closer to cost recovery,
in compliance with the budget principles. There is no rate increase for Residential Curbside Recycling,
and there is a $ 0.30 per month decrease for the Household Hazardous Waste Charge. A public
hearing was held on June 7, 2005 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
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 forecasted interest rates or 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 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 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 has prepared the 2006- 07 through 2010- 11 Financial Plan and it was presented
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
XI V
to Council at the May 10, 2005 study session. It projects that the Working Capital Reserves will be
essentially depleted by the end of fiscal year 2009- 10. 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 the Working Capital ( Emergency) Reserves will
be used for a fourth year in a row to balance the adopted budget. At the end of fiscal year 2004- 05 the
Working Capital Reserves balance is estimated to be $ 12.8 million. The fiscal year 2005- 06 adopted
budget includes the use of an additional $ 2.1 million in Working Capital Reserves to balance the
General Fund budget. For the end of 2005- 06 the Emergency Reserve is estimated to be at $ 10.7
million. The Five- Year Financial Plan projects that the Working Capital reserve will be depleted during
the 2009- 10 fiscal year. It is imperative that the City develop additional measures to maintain the City’s
fiscal integrity. Part of this review will include when the reserves can begin to be gradually increased to
restore them to their original 90 day funding level, a Council and City Management high priority.
Reserve for Capital Projects
The 2005- 06 Annual Budget includes funding for appropriations in the amount of $ 6.5 million from the
General Contingency Reserve Fund for various capital projects. It includes $ 6.3 million for various
General Government capital improvement projects and $ 201 thousand for Solid Waste projects. The
reserve is projected to decline from $ 20.9 million at June 30, 2005 to $ 14.5 million at June 30, 2006.
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 Fund operating expenditures. The balance of the Land Sale Reserve at June
30, 2005 is projected to be $ 15.3 million. This includes the recent sale of City- owned property at the
southwest corner of El Camino Real and Main Street for $ 593,600. Interest earnings of $ 600-$ 650
thousand from this reserve is used to help balance the 2005- 06 General 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 2005- 06 CIP budget reflects the use of
$ 385 thousand in Building Inspection Reserve funds. The balance in this fund at June 30, 2005 is
estimated to be $ 3.51 million.
BUDGET AWARDS
The City received the Excellence in Budgeting Award for the fiscal year 2004- 05 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 Budgeting Award for the fiscal
year 2004- 2005 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 fifth year that the City has received
an award for its Annual Budget and the ninth year for its Capital Improvement Budget.
SUMMARY
City Manager's Transmittal Letter
Operating Budget
Fiscal Year 2005- 06
XV
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. Staff will continue to closely monitor the
status of the City's revenue streams. 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,
JS: MAP: FAS: paf
XV I
Budget Principles for 2005- 2006
• 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 2005 - 2006
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, Laura G. Reeve, Eva Combs, 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, Lorie Garcia,
Martin A. David, Marwan A. Fawal, Mary Ann Marinshaw, Gerald McKee,
Jacqueline Moore, Art Silva, Phal J. Vaswani Charles A. Petersen, Ed Richards
INTERNATIONAL EXCHANGE COMMISSION PARKS AND RECREATION COMMISSION
Beatrice Costa, Christina R. Francisco, 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
Duarte Braga, Karen Hardy, Gap Kim, Marjorie H. Banko, Ann Creighton, Patrick Driscoll,
Joe Kornder, Tony Marine, Mike Rodriguez, Carolyn G. McAllister, Doris M. Modesitt,
Mohammed A. Sarodi Cleo M. Stuckrath, Bessie Vizzusi- Gruhlke
YOUTH COMMISSION HOUSING REHABILITATION LOAN COMMITTEE
Alisa Alexander, Jeoffrey Batangan, Anne Kepner, Brice McQueen, Michelle Smith,
Andrea Butkovic, Leslie Harbinson, Carley Kibler, Jamie Matthews
Noah Lee, Blaze Mancillas, Nikhil Marathe,
Nathan Mertz, Candace Nisby, Tracey Ottey,
Angela Prochnow, Gary Schwartz,
Alyssa Whitcomb, Julia Wobbe
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 Ru 􀀅 􀀄 is
DIRECTOR OF INFORMATION TECHNOLOGY CITY LIBRARIAN
Vacant
Karen Saunders ( Interim)
DIRECTOR OF PARKS & RECREATION
Larry Wolfe
CITY OF SANTA CLARA
FISCAL YEAR 2005- 2006
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
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 109,106 accounts for 6.1% 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,
XXII
CITY PROFILE
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
XXIII
CITY PROFILE
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.”
XXIV
What Your $ 449.8
Million Buys - - -
Taxes
Property Tax $ 20.1
Sales Tax 37.1
Transient Occupancy Tax 7.9
Other Taxes 3.2
Intergovernmental
Revenue from Other Agencies 5.9
Vehicle License Fees 1.3
User Fees
Charges for Current Services - Utilities 250.6
Charges for Current Services - Other 21.5
Other
Interest Income 23.5
Licenses, Permits, Fines, Penalties 4.4
Contribution In- lieu 12.2
Rents and Royalties 11.6
Other Revenue/ Debt Proceeds 0.4
Enterprise Capital Projects 9.7
Beginning Balance/ Reserves/ Transfers 40.4
Total Estimated Revenue $ 449.8
$ 210.3
Electric
$ 62.0
Police, Fire, 9- 1- 1
( Communications)
$ 32.4
Capital
Projects
$ 34.6
Water &
Sewer
$ 29.5
Debt
Service
$ 16.3
Public
Works
$ 15.1
Solid
Waste
$ 11.4
Parks &
Recreation
$ 8.2
Finance &
Human Resources
$ 6.3
Internal
Services
$ 10.6
City
Administration
$ 6.5
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
ADOPTED
Bill Wilson Center - $ 71,050 Concerts in the Park - $ 4,500
Provides family and individual counseling Provides six concerts at Central Park near the
and youth crisis intervention at local schools. Pavilion.
Bill Wilson Center - Centre for Living with $ 5,000 Council on Aging - Case Management $ 5,250
Dying - Provides case management for senior
Provides grief support services, including residents, working through the Senior Center.
individual and group counseling.
Catholic Charities One- Time Rental $ 2,000 Emergency Housing Consortium - $ 54,638
Assistance - Provides emergency shelter, transition
Program is designed to assist families/ counseling, food and clothing for homeless
individuals with mental & physical disabilities families and individuals.
and/ or illness to maintain their housing.
Catholic Charities Long Term Care $ 9,605 Heart of the Valley $ 3,630
Ombudsman - Provides transportation for seniors and
Monitors quality of care to elderly and disabled persons who are unable to travel by
disabled residents of long- term care bus or other public transportation and to
facilities. collect demographic information on new
paratransit clients.
Catholic Charities Shared Housing $ 18,000
Project - Jazz Arts Music Network $ 5,000
Matches low income parents with children Host and organizer of annual Kwanzaa Festival.
and people with AIDS to available, under-utilized
housing. Keep Santa Clara Clean - $ 500
Championship Team Trust Fund - $ 40,000 Anti- litter, anti- graffiti program promoting a
Funding assistance for championship teams/ clean and healthy City environment.
individuals and sports affiliated groups to
travel to state, national and international Live Oak Adult Day Services - $ 5,250
competition representing the City of Santa Provides adult day care for dependent
Clara. and disabled seniors.
XXVI
Mission City Opera $ 5,000 Santa Clara Players - $ 5,760
Provides quality opera performances to the Provides theatrical performances for the
community. entertainment and enjoyment of the
Miss Santa Clara Pageant - $ 14,000 community.
Provides an opportunity to receive an
educational scholarship. Santa Clara Swim Club - $ 35,000
Host swim meets which bring national and
Next Door - $ 25,000 international visitors to our city.
Case Management for survivors of
domestic violence. Senior Adult Legal Assistance - $ 6,335
Provides free legal services for seniors that
Operation Brown Bag - $ 6,500 includes advice and referrals, document
Distributes weekly bags of food for low - writing and legal representation.
income seniors.
Silicon Valley Independent Living Center
Project Sentinel - Fair Housing - $ 19,920 1. Provides counseling and training services $ 7,140
Addresses complaints and undertakes for adults with physical disabilities.
investigation of illegal housing
2. Provides training in independent living $ 15,198
Project Sentinel - HUD Counseling - $ 3,534 skills to adults who are disabled as a
Counseling in personal finance for mortgage result of a recent traumatic injury.
or rent delinquency and default
Support Network for Battered Women - $ 7,420
Saint Justin Community Ministry $ 15,000 Provides counseling, shelter and legal services
Provides food assistance to low/ moderate for battered spouses and their families.
income residents.
Tourist and Convention Bureau - $ 1,370,561
Santa Clara Ballet - $ 13,000 Market City as a tourism and convention
Provides cultural, music, dancing, destination.
entertainment and performances for the
enjoyment of all. Triton Museum -
1. Provides artistic exhibitions and $ 290,000
Santa Clara Chorale - $ 10,200 educational programs.
Provides community choral performances.
Valley Transportation Authority - $ 60,000
Santa Clara Kiwanis/ Lions Fish Derby $ 960 Provides transportation for seniors and
Provides funding for annual Fish Derby for disabled persons who are unable to travel by
local youth. bus or other public transportation.
Santa Clara Nutrition Site - $ 11,000
Provides daily delivery of meals to severely
disabled, homebound seniors.
Total Funding Provided to Community Groups $ 2 ,145,951
XXVII
Outside Group Funding ( continued)
ADOPTED
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XXVIII
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 2005- 06 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 1996- 97 through 2003- 04 show actual receipts, while the numbers for
fiscal years 2004- 05 and 2005- 06 show budget estimates.
Actual expenditures for fiscal years 2003- 04 and 2002- 03, the 2004- 05 and the 2005- 06 adopted appropriations are
summarized on pages 10 and 11 by Fund ( including General Fund Departments). Actual revenues for fiscal years
2002- 03 and 2003- 04, the 2004- 05 and the 2005- 06 adopted estimated revenues are summarized on pages 12 and
13 by fund.
City of Santa Clara
2005- 2006
$ 449,825,096
Total City Revenues
by Source
( Dollars in Millions)
Taxes $ 68.3
Charges for Services $ 272.1
Interest $ 23.5
Other Revenues $ 73.7
Contribution In- Lieu $ 12.2
Total City Appropriations
by Object Category
( Dollars in Millions)
Interfund Services $ 16.5
Debt Service $ 29.5
Salaries & Benefits $ 123.7
Other Operating
Expenditures $ 46.7
Capital Improvements $ 32.4
Resource & Production $ 188.4
Contribution In- lieu
& Franchise Tax $ 12.6
2
City of Santa Clara
2005- 2006
$ 125,602,421
General Operating Funds
Revenue by Source
( Dollars in Millions)
Sales Tax $ 37.1
Charges for Services $ 15.8
Interest Income $ 6.5
Property Tax $ 20.1
General Operating Funds
Appropriations by Object Category
( Dollars in Millions)
Interfund Services $ 5.1
Debt Service $ 6.4
Transient Occupany
Tax $ 7.9
Contribution In- lieu $ 12.2
Other Revenue Sources $ 16.1
Salaries & Benefits $ 94.7
Other Operating
Expenditures $ 19.4
Rents& Leases $ 9.9
3
CITY OF SANTA CLARA
GENERAL FUND REVENUES
TEN YEAR TREND LINE
Property Tax ($ Millions)
$ 8
$ 10
$ 12
$ 14
$ 16
$ 18
$ 20
$ 22
96/ 97 97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06
Sales Tax ($ Millions)
$ 20
$ 24
$ 28
$ 32
$ 36
$ 40
$ 44
$ 48
$ 52
96/ 97 97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06
Estimated
Estimated
4
CITY OF SANTA CLARA
GENERAL FUND REVENUES
TEN YEAR TREND LINE
Interest Income ($ Millions)
$ 4
$ 6
$ 8
$ 10
$ 12
$ 14
96/ 97 97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06
Estimated
Transient Occupancy Tax ($ Millions)
$ 2
$ 4
$ 6
$ 8
$ 10
$ 12
$ 14
$ 16
96/ 97 97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06
Estimated
5
6
REVENUE ESTIMATES AND FEE IMPACTS
Fiscal Year 2005 - 06 Revenue Assumptions
Rate of Inflation 1.9% increase based on national, state and local economic forecasts.
General Fund 7.8% increase in budgeted direct revenue.
Property Tax 23.6% increase due to motor vehicle license property tax backfill not being
included in fiscal year 2004- 05 property revenue budget.
Sales Tax 5.2% increase due to reduced fiscal year 2004- 05 budget estimate because
of State budget agreement and current trends in sales growth.
Transient Occupancy Tax 11.2% increase based on prevailing revenue trend, and increased demand
for hotel rooms in the County.
Interest Income 9.4% decrease based on decreased reserve balances combined with lower
yields.
Contribution In- lieu of Tax .01% decrease due to slightly lower sales from the Electric compared to
fiscal year 2004- 05 budget.
Enterprise Funds Rate and Fee Impact
Rate Type Fiscal Year 2004- 05 Rate Change
Electric Utility Rate None. Under review for Jan 2006
Water Utility Rate 4.0% increase
Sewer Utility Rate 6.0% increase ( Approved 5/ 2003)
Clean up Campaign Charge $ 0.50 per month
Household Hazardous Waste Charge ($ 0.30) per month
Garbage Collection and Disposal Rate $ 0.15 per month Single Family Rate
Residential Curbside Recycling Rate None
Rubbish ( Clean Green) Program Rate $ 0.50 per month, per participating residence
Recycle Water Rate 4.0% increase
Municipal Solar Utility None
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 4 37,540
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 $ 11,679,156 $ 5,728,122 $ 300,478,850 $ 6 ,336,547 $ 4 49,825,096
SUMMARY OF ESTIMATED RESOURCES
BY FUND AND REVENUE CATEGORY
FISCAL YEAR 2004 - 2005
General Capital Special Internal
Revenue Category Operating Projects Revenue Enterprise Services Totals
Property Taxes $ 16,271,000 $ - $ - $ - $ - $ 1 6,271,000
Sales Tax 35,239,000 - - - - 3 5,239,000
Other Taxes 10,149,000 - - - - 1 0,149,000
Licenses and Permits 3,045,200 - - - - 3 ,045,200
Fines and Penalties 1,359,800 - - - - 1 ,359,800
Use of Money and Property 14,032,279 - - 20,330,974 - 3 4,363,253
Revenue from Other Agencies 6,579,712 50,000 3,612,508 729,000 - 1 0,971,220
Charges for Current Services 11,124,000 100,000 678,579 247,204,496 4 ,613,989 2 63,721,064
Contribution- In- Lieu of Taxes 12,179,487 - - - - 1 2,179,487
Other Revenue 199,000 - - 3,093,500 110,040 3 ,402,540
Subtotal - Estimated Revenue 110,178,478 150,000 4,291,087 271,357,970 4 ,724,029 3 90,701,564
Transfer/ Designation From ( To) Reserve 9,843,449 6,461,600 ( 12,900) 25,264,103 1 00,304 4 1,656,556
Inter- fund Transfers 3,648,986 903,200 331,337 ( 310,300) ( 330,000) 4 ,243,223
Estimated Beginning Balance - 1,410,000 973,932 6,495,900 1 ,476,571 1 0,356,403
TOTAL ESTIMATED RESOURCES $ 123,670,913 $ 8,924,800 $ 5,583,456 $ 302,807,673 $ 5 ,970,904 $ 4 46,957,746
7
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 $ 1 1,246,535 $ - $ - $ 175,010 $ - $ - $ 20,153,016
Public Works 11,775,990 2,203,046 - - 917,546 - - 14,896,582
Public Safety + 9- 1- 1 5 6,057,605 2,568,036 - - 3,392,556 - - 62,018,197
Parks & Recreation 8 ,367,512 1,694,215 - - 416,954 - - 10,478,681
Library 5 ,338,373 1,103,228 - - 74,062 - - 6 ,515,663
Planning & Inspection 4 ,626,320 480,889 - - 71,399 - - 5 ,178,608
Debt Service - - - - - - 6,361,674 6 ,361,674
Total- Gen. Operating 9 4,897,271 19,295,949 - - 5,047,527 - 6,361,674 125,602,421
Special Revenue Funds 1 31,630 1,260,021 - - 43,158 4,293,313 - 5 ,728,122
Capital Projects Funds - - - - - 1 1,679,156 - 11,679,156
Enterprise Funds 2 6,621,003 22,046,102 188,411,635 12,570,095 1 1,267,504 16,445,500 2 3,117,011 300,478,850
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 $ 12,570,095 $ 16,475,498 $ 32,417,969 $ 29,478,685 $ 449,825,096
SUMMARY OF APPROPRIATIONS
BY FUND AND CATEGORY
FISCAL YEAR 2004 - 2005
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 $ 7 ,990,639 $ 10,446,263 $ - $ - $ 159,379 $ - $ - $ 18,596,281
Public Works 11,493,217 2,225,146 - - 842,450 - - 14,560,813
Public Safety + 9- 1- 1 5 6,268,634 3,170,444 - - 3,198,818 - - 62,637,896
Parks & Recreation 8 ,184,078 1,587,715 - - 365,772 - - 10,137,565
Library 4 ,982,696 1,182,935 - - 84,424 - - 6 ,250,055
Planning & Inspection 4 ,432,259 612,380 - - 66,515 - - 5,111,154
Debt Service - - - - - - 6,377,149 6 ,377,149
Total- Gen. Operating 9 3,351,523 19,224,883 - - 4,717,358 - 6,377,149 123,670,913
Special Revenue Funds 1 25,478 1,262,091 - - 42,880 4,153,007 - 5 ,583,456
Capital Projects Funds - - - - - 8,924,800 - 8 ,924,800
Enterprise Funds 2 5,626,318 19,728,372 169,994,166 12,561,487 8,042,978 49,168,500 17,685,852 302,807,673
Internal Service Funds 2 ,088,686 3,767,138 - - 1 15,080 - - 5 ,970,904
CATEGORY TOTALS $ 121,192,005 $ 43,982,484 $ 169,994,166 $ 12,561,487 $ 12,918,296 $ 62,246,307 $ 24,063,001 $ 446,957,746
8
SUMMARY OF ESTIMATED RESOURCES
THREE YEAR TREND BY REVENUE CATEGORY
ADOPTED BUDGETS FOR FISCAL YEARS 2003- 2004 through 2005- 2006
ESTIMATED RESOURCES
2005- 2006 2004- 2005 2003- 2004
Revenue Categories
Property Taxes $ 20,115,000 $ 16,271,000 $ 17,414,000
Sales Tax 37,053,000 35,239,000 36,000,000
Transient Occupancy Tax 7,904,000 7,106,000 8,947,000
Other Taxes 3,227,000 3,043,000 2,927,800
Licenses and Permits 3,132,200 3,045,200 3,135,500
Fines and Penalties 1,307,730 1,359,800 1,249,830
Interest 23,452,505 25,872,881 26,337,441
Other use of Money and Property 11,643,200 8,490,372 3,845,240
Revenue from Other Agencies 7,280,227 10,971,220 11,725,136
Charges for Current Services 274,518,559 263,721,064 261,846,003
Contribution In- lieu 12,165,295 12,179,487 12,028,000
Other Revenue 437,540 3,402,540 36,388,540
Transfers From ( To) Reserves 29,943,198 41,656,556 ( 3,144,942)
Interfund Transfers 4,596,036 4,243,223 9,780,538
Estimated Beginning Balance 13,049,606 10,356,403 13,761,109
Total Estimated Resources $ 449,825,096 $ 446,957,746 $ 442,241,195
SUMMARY OF APPROPRIATIONS
THREE YEAR TREND BY EXPENDITURE CATEGORY
ADOPTED BUDGETS FOR FISCAL YEARS 2003- 2004 through 2005- 2006
PROJECTED EXPENDITURES
2005- 2006 2004- 2005 2003- 2004
Expenditure Categories
Salaries and Benefits $ 123,805,161 $ 121,192,005 $ 1 19,091,986
Other Operating Expenditures 46,666,053 43,982,484 41,017,268
Resource and Production 188,411,635 169,994,166 176,487,303
Contribution In- lieu & Franchise Fees 12,570,095 12,561,487 12,413,210
Interfund Services 16,475,498 12,918,296 12,272,975
Debt Service 29,478,685 24,063,001 17,839,675
Total Operating Budget 417,407,127 384,711,439 379,122,417
Capital Improvement Project Budget 32,417,969 62,246,307 63,118,778
Total Projected Expenditures $ 449,825,096 $ 446,957,746 $ 442,241,195
9
FY 2002- 03 FY 2003- 04 FY 2004- 05 FY 2005- 06
DEPARTMENT/ FUND NAME Actual Actual Adopted Adopted
GENERAL FUND ( by Department)
City Council $ 241 $ 216 $ 227 $ 247
City Manager 5,463 5,754 3,775 4,199
City Clerk 526 5 34 726 527
City Attorney 1,257 1,227 1,055 1,123
Information Technology 2,624 4,040 5,161 5,877
Human Resources 1,689 1,651 1,755 1,849
Finance 6,852 6,004 5,897 6,330
Parks and Recreation 9,983 10,020 10,138 10,479
Library 5,507 5,899 6,250 6,516
Planning and Inspection 4,948 5,139 5,111 5,179
Street 6,301 6,096 6,253 6,372
Engineering 5,679 5,734 6,017 6,184
Building Maintenance 1,365 1,334 1,511 1,508
Purchasing 837 8 39 780 832
Police 32,397 33,900 34,913 34,059
Fire 26,740 27,414 27,725 27,959
General Fund - Total Budget 112,409 115,801 117,294 119,240
Debt Service Fund ( 431, 441) $ 5,431 $ 6,293 $ 6,377 $ 6,362
Capital Improvement Project Funds
Traffic Mitigation ( 525) $ 447 $ 2,993 $ 1,260 $ 2,730
Street Beautification ( 531) 1,501 281 35 60
Parks and Recreation ( 532) 2,256 6,804 230 805
Streets and Highways ( 533) 1,737 1,703 18 430
Storm Drain ( 535) 1,037 2,373 250 600
Fire Department ( 536) 4,592 1,169 2,567 2,942
Library Department ( 537) 16,387 16,038 - -
Public Buildings ( 538) 2,503 1,830 405 765
General Government- Other ( 539) 10,409 8,424 4,160 3,347
40,869 41,615 8,925 11,679
Special Revenue Funds
Dwntwn. Parking Mtce. District ( 025) $ 92 $ 138 $ 120 $ 125
Convention Ctr . Mtce. District ( 026) 1,225 1,159 1,231 1,231
Recreation Programs ( 041) 79 79 79 79
HUD Program Commty. Serv. ( 562) 1,606 2,953 2,241 1,248
Special Gas Tax ( 521) 263 1,061 737 750
Special Gas Tax ( 522) 892 689 725 1,845
Collier- Uruh Trans. Act ( 524) 122 576 450 450
4,279 6,655 5,583 5,728
2005 - 06 Budget by Fund
And P/ Y Appropriations/ Expenditures
City of Santa Clara
( amounts expressed in thousands)
10
FY 2002- 03 FY 2003- 04 FY 2004- 05 FY 2005- 06
DEPARTMENT/ FUND NAME Actual Actual Adopted Adopted
2005 - 06 Budget by Fund
And P/ Y Appropriations/ Expenditures
City of Santa Clara
( amounts expressed in thousands)
Internal Service Funds
Vehicle Maintenance ( 053) $ 2,968 $ 3,102 $ 3,321 $ 3,354
Vehicle Acquisition ( 050) 1,195 741 2,101 2,392
Communications Tech. Services ( 047) 484 512 529 571
Communications Acquisition ( 048) - 13 20 20
4,647 4,368 5,971 6,337
Enterprise Funds
Electric Utility ( 091,491,534,591) $ 237,876 $ 264,303 $ 245,075 $ 245,727
Water Utility ( 092,592) 16,184 19,544 21,843 22,163
Water Recycling ( 097,497,597) 743 737 978 981
Sewer Utility ( 094,594) 11,985 12,764 19,005 15,489
Solid Waste ( 096,596) 13,818 15,020 15,131 15,275
Cemetery ( 093,593) 808 436 776 844
281,414 312,804 302,808 300,479
Total City $ 4 49,049 $ 487,536 $ 446,958 $ 449,825
Redevelopment Agency
Bayshore North ( 901, 939, 941) $ 24,070 $ 32,297 $ 30,480 $ 45,312
University Project ( 902, 938, 942) 137 234 382 396
Housing ( 910,915) 6,902 4,388 9,157 4,133
31,109 36,919 40,019 49,841
Sport. & Open Space Authty.
Sports & Open Space Authty. ( 801) $ 13 $ 18 $ 45 $ 45
Santa Clara Golf and Tennis ( 811,840) 2,068 3,692 2,081 1,852
2,081 3,710 2,126 1,897
Total - City & Agency $ 4 82,239 $ 528,165 $ 489,103 $ 501,563
11
FY 2002- 03 FY 2003- 04 FY 2004- 05 FY 2005- 06
FUND Actual Actual Adopted Adopted
General Operating Funds
General Fund ( 001) $ 114,407 $ 115,227 $ 107,450 $ 117,132
Debt Service Fund ( 441) 7,115 6,352 6,377 6,362
121,522 121,579 113,827 123,494
Capital Improvement Project Funds
Traffic Mitigation ( 525) $ 578 $ 1,900 $ 1,260 $ -
Street Beautification ( 531) 764 ( 487) 35 60
Parks and Recreation ( 532) 10,605 ( 372) 230 805
Streets and Highways ( 533) ( 1,298) 882 18 346
Storm Drain ( 535) 461 806 100 110
Fire Department ( 536) ( 373) 649 2,567 2,942
Library Department ( 537) 22,873 204 - -
Public Buildings ( 538) 1,536 ( 120) 405 765
General Government- Other ( 539) 11,825 5,898 4,160 3,347
46,971 9,360 8,775 8,375
Special Revenue Funds
Downtown. Parking Mtce. District ( 025 ) $ 38 $ 134 $ 120 $ 158
Convention Ctr . Mtce. District ( 026) 1,234 1,248 1,198 1,197
Recreation Programs ( 041) 79 79 79 79
HUD Program Community. Serv. ( 562) 1,951 3,323 2,202 1,178
Special Gas Tax ( 521) 548 738 500 650
Special Gas Tax ( 522) 960 970 185 385
Collier- Uruh Trans. Act ( 524) 553 543 350 400
5,363 7,035 4,634 4,047
Internal Service Funds
Vehicle Maintenance ( 053) $ 2,989 $ 3,385 $ 3,415 $ 3,413
Vehicle Acquisition ( 050) 1,944 621 680 1,009
Communications Tech. Services ( 047) 470 428 473 473
Communications Acquisition ( 048) ( 246) ( 270) ( 175) 85
5,157 4,164 4,393 4,980
Revenue Summary - All Funds
FY 2002- 03 through FY 2005- 06
City of Santa Clara
( amounts expressed in thousands)
12
FY 2002- 03 FY 2003- 04 FY 2004- 05 FY 2005- 06
FUND Actual Actual Adopted Adopted
Revenue Summary - All Funds
FY 2002- 03 through FY 2005- 06
City of Santa Clara
( amounts expressed in thousands)
Enterprise Funds
Electric Utility ( 091,491,534,591) $ 208,280 $ 364,317 $ 221,263 $ 220,635
Water Utility ( 092,492,592) 16,655 19,262 20,120 20,709
Water Recycling ( 097,497,597) 1,083 1,031 1,011 1,070
Sewer Utility ( 094,494,594) 13,157 12,863 13,296 13,593
Solid Waste ( 096,496,596) 14,098 14,538 15,131 15,276
Cemetery ( 093,493,593) 609 538 776 844
253,882 412,549 271,597 272,127
Total City $ 432,895 $ 554,687 $ 403,226 $ 413,023
Redevelopment Agency
Bayshore North ( 901, 939, 941) $ 78,570 $ 30,118 $ 30,312 $ 15,825
University Project ( 902, 938, 942) 501 348 326 296
Housing ( 910) 12,382 13,008 9,053 8,176
91,453 43,474 39,691 24,297
Sport. & Open Space Authty.
Sport. & Open Space Authty. ( 801) $ 2,965 $ 2,894 $ 2,789 $ 2,394
Santa Clara Golf and Tennis ( 811, 840) 3,083 2,842 3,531 2,969
6,048 5,736 6,320 5,363
Total - City & Agency $ 530,396 $ 603,897 $ 449,237 $ 442,683
13
Estimated Fund Balances
FY05- 06
Estimated Fund Estimated Estimated Fund
Balance at FY05- 06 Revenues & Balance at
06- 30- 05 Appropriations Net Transfers 06- 30- 06
General Operating Funds
General Fund ( 001) ( a) $ 2,743,031 $ 1 19,240,747 $ 1 17,132,981 $ 6 35,265
Debt Service Fund ( 441, 431) 7,762,134 6 ,361,674 6 ,361,674 7 ,762,134
10,505,165 1 25,602,421 1 23,494,655 8 ,397,399
Capital Projects Funds
Streets and Highways Funds ( 525, 531, 533) ( b) 7,147,615 3 ,219,602 4 05,602 4 ,333,615
General Government ( 532, 535, 536, 537, 538, 539) ( b) 2,023,817 8 ,459,554 7 ,969,554 1 ,533,817
9,171,432 1 1,679,156 8 ,375,156 5 ,867,432
Special Revenue Funds
Maintenance Districts ( 025, 026) 226,503 1 ,356,204 1 ,354,962 2 25,261
Recreation Programs ( 041) 54,000 7 8,605 7 8,605 5 4,000
Community Services HUD Program ( 562) ( b) 33,233 1 ,248,213 1 ,177,657 ( 37,323)
Streets and Highways Funds ( 521, 522, 524) ( b) 5,993,837 3 ,045,100 1 ,435,000 4 ,383,737
6,307,573 5 ,728,122 4 ,046,224 4 ,625,675
Enterprise Funds
Electric Utility ( 091, 491, 534, 591) 416,322,934 2 45,727,062 2 20,635,181 3 91,231,053
Water Utility ( 092, 492, 592) 9,166,248 2 2,163,436 2 0,709,458 7 ,712,270
Water Recycling ( 097, 497, 597) 2,911,414 9 80,824 1 ,069,800 3 ,000,390
Sewer Utility ( 094, 494, 594) 19,784,819 1 5,488,656 1 3,593,410 1 7,889,573
Solid Waste ( 096, 496, 596) ( c) ( 4,274,887) 1 5,275,032 1 5,275,032 ( 4,274,887)
Cemetery ( 093, 493, 593) ( 1,160,620) 8 43,840 8 43,840 ( 1,160,620)
442,749,908 3 00,478,850 2 72,126,721 4 14,397,779
Internal Service Funds
Vehicle Maintenance ( 053) 1,015,342 3 ,353,936 3 ,413,352 1 ,074,758
Vehicle Acquisition ( 050) 3,984,267 2 ,392,100 1 ,009,303 2 ,601,470
Communications Technical Services ( 047) 96,089 5 70,511 4 73,100 ( 1,322)
Communications Acquisition ( 048) ( 20,094) 2 0,000 8 4,740 4 4,646
5,075,604 6 ,336,547 4 ,980,495 3 ,719,552
$ 473,809,682 $ 449,825,096 $ 413,023,251 $ 437,007,837
( 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- 05.
( c) Fund balance has been reduced by the unfunded liability for estimated post- closure costs.
City of Santa Clara
As of June 30, 2005 and 2006
14
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15
ESTIMATED RESOURCES
ALL FUNDS
General Capital
Operating Improvement
Revenue Accounts TOTALS Funds Funds
Taxes:
Property Tax:
Secured $ 18,315,000 $ 18,315,000 $ -
Unsecured 1,800,000 1,800,000 -
Subtotal - Property Tax 20,115,000 20,115,000 -
Sales Tax 37,053,000 37,053,000 -
Transient Occupancy Tax 7,904,000 7,904,000 -
Franchise Tax 2,561,000 2,561,000 -
Document Transfer Tax 666,000 666,000 -
Total Taxes 68,299,000 68,299,000 -
Licenses and Permits:
Business Licenses 800,400 800,400 -
Building Permits 1,900,000 1,900,000 -
Electric Permits 200,000 200,000 -
Plumbing Permits 120,000 120,000 -
Mechanical Permits 110,000 110,000 -
Street Opening Permits 1,500 1,500 -
Misc. Licenses and Permits 300 300 -
Total Licenses and Permits 3,132,200 3,132,200 -
Fines and Penalties:
Traffic Fines 512,730 512,730 -
California Vehicle Code 190,000 190,000 -
Library Fines 205,000 205,000 -
Collection Charges 400,000 400,000 -
Total Fines and Penalties 1,307,730 1,307,730 -
Use of Money and Property:
Interest Income 23,452,505 6,497,640 -
Rents and Royalties 11,637,200 9,882,000 -
Miscellaneous Money and Property 6,000 6,000 -
Total Money and Property 35,095,705 16,385,640 -
Revenue from Other Agencies:
Community Devel. Block Grant 1,044,474 - -
HOME Program 657,740 - -
Vehicle License Fee 1,290,000 1,290,000 -
Gas Tax ( 2105, 2106, 2107, 2126) 1,950,000 - -
Homeowner Tax Relief 190,000 190,000 -
Misc. Revenue from Other Agencies 2,106,361 808,724 660,032
Total Rev. from Other Agencies 7,238,575 2,288,724 660,032
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 Royalties
Miscellaneous Money and Property
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 Agencies
Total Rev. from Other Agencies
Special Internal
Revenue Enterprise Service
Funds Funds Funds
$ - $ - $ -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- 16,954,865 -
- 1,755,200 -
- - -
- 18,710,065 -
1,044,474 - -
657,740 - -
- - -
1,950,000 - -
- - -
78,605 559,000 -
3,730,819 559,000 -
17
ESTIMATED RESOURCES
ALL FUNDS
General Capital
Operating Improvement
Revenue Accounts TOTALS Funds Funds
Charges for Current Services:
Customer Service Charges 232,050,642 - 110,000
Connection Charges 1,000,000 - -
Sewer Charges 19,220 - -
Recreation Programs 1,162,010 1,162,010 -
Engineering Fees 317,323 317,323 -
Planning and Zoning Fees 150,000 150,000 -
Inter- department Services 15,295,875 10,881,663 -
Refuse Collection Charges 12,982,000 - -
Sales- Facilities, Labor & Other 586,000 - -
Equipment Amortization 1,064,043 - -
Solar Installation and Service Charge 96,400 - -
Clean- up campaign 1,400,000 - -
Plan Check and Sign Fees 1,000,000 1,000,000 -
Police Monitored Alarm Fee 110,000 110,000 -
Fire Prevention Fees 1,225,000 1,225,000 -
Recovery Fee - Towed Vehicles 108,000 108,000 -
Sales- Bulk Power, Steam Sales, Gas Wells 1,636,667 - -
Household Hazardous Waste Charge 72,000 - -
Misc. Charges for Current Services 1,843,379 811,800 -
Total Charges for Current Services 272,118,559 15,765,796 110,000
Other Revenue:
Contribution In- lieu of Taxes 12,165,295 12,165,295 -
Damage Recoveries 60,000 - -
Miscellaneous Other Revenue 377,540 225,000 -
Total Other Revenue 12,602,835 12,390,295 -
TOTAL DIRECT REVENUE, OPERATIONS 399,794,604 119,569,385 770,032
Contingent/ Reserve Transfers, Loans and Designations:
Transfer From ( To) GF Gen. Cont. Reserve 6,524,731 - 6 ,167,859
Transfer From ( To) GF Land Sale Reserve - - -
Transfer From ( To) GF Working Capital Reserve 2,107,766 2,107,766 -
Transfer From RDA 1,235,613 1,233,713 1,900
Transfer From ( To) Fund Reserves ( 137,056) - -
Transfer From ( To) Cost Reducion Fund 20,601,881 - -
Transfer ( To) Enterprise Fund Res. 1,202,748 - -
Transfer From Non- Expendable Trust Funds 17,000 - -
Transfer From Comm. Equip. Reserve - - 70,000
Transfer From Sports& Open Space Authority 2,328,731 2,328,731 -
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 Charge
Clean- up campaign
Plan Check and Sign Fees
Police Monitored Alarm Fee
Fire Prevention Fees
Recovery Fee - Towed Vehicles
Sales- Bulk Power, Steam Sales, Gas Wells
Household Hazardous Waste Charge
Misc. Charges for Current Services
Total Charges for Current Services
Other Revenue:
Contribution In- lieu of Taxes
Damage Recoveries
Miscellaneous Other Revenue
Total Other Revenue
TOTAL DIRECT REVENUE, OPERATIONS
Contingent/ Reserve Transfers, Loans and Design
Transfer From ( To) GF Gen. Cont. Reserve
Transfer From ( To) GF Land Sale Reserve
Transfer From ( To) GF Working Capital Reserve
Transfer From RDA
Transfer From ( To) Fund Reserves
Transfer From ( To) Cost Reducion Fund
Transfer ( To) Enterprise Fund Res.
Transfer From Non- Expendable Trust Funds
Transfer From Comm. Equip. Reserve
Transfer From Sports& Open Space Authority
Special Internal
Revenue Enterprise Service
Funds Funds Funds
- 231,940,642 -
- 1,000,000 -
- 19,220 -
- - -
- - -
- - -
- 537,800 3,876,412
- 12,982,000 -
- 586,000 -
- - 1,064,043
- 96,400 -
- 1,400,000 -
- - -
- - -
- - -
- - -
- 1,636,667 -
- 72,000 -
678,579 353,000 -
678,579 250,623,729 4,940,455
- - -
- 51,500 8,500
- 51,000 101,540
- 102,500 110,040
4,409,398 269,995,294 5,050,495
- 356,872 -
- - -
- - -
- - -
( 12,900) - ( 124,156)
- 20,601,881 -
- 1,202,748 -
- 17,000 -
- - ( 70,000)
- - -
19
ESTIMATED RESOURCES
ALL FUNDS
General Capital
Operating Improvement
Revenue Accounts TOTALS Funds Funds
Transfer From Gas Tax ( 2105, 2107) - 515,000 -
Transfer From Comm. Svcs. HUD Prog. - 536,209 -
Transfer To Maintenance Districts - ( 689,283) -
Transfer From Trust Funds 900 900 -
Total Contingent/ Reserve Transfers,
Loans and Designations 33,882,314 6,033,036 6 ,239,759
Resources After Reserve Transfers
Loans and Designations- Operations 433,676,918 125,602,421 7 ,009,791
Enterprise Funds - Capital Projects
Direct Revenue/ Debt Proceeds 2,400,000 - -
Beginning Balance 6,583,500 - -
Transfer From Building Inspection Reserve 384,000 - 384,000
Transfer From Electric Utility - - 746,493
Transfer From Water Utility - - 109,642
Transfer ( To) From Cemetery 4,700 - 4,700
Transfer From Sewer Utility - - 40,310
Transfer From Solid Waste Enter. 232,220 - 62,220
Transfer From Assessment District 18,000 - 18,000
Loan From GF GC Res 48,000 - -
Total Enterprise Funds - Cap. Proj. 9,670,420 - 1 ,365,365
Estimated Beginning Balance 6,477,758 - 3 ,304,000
TOTAL ESTIMATED RESOURCES $ 449,825,096 $ 125,602,421 $ 11,679,156
20
ESTIMATED RESOURCES
ALL FUNDS
Revenue Accounts
Transfer From Gas Tax ( 2105, 2107)
Transfer From Comm. Svcs. HUD Prog.
Transfer To Maintenance Districts
Transfer From Trust Funds
Total Contingent/ Reserve Transfers,
Loans and Designations
Resources After Reserve Transfers
Loans and Designations- Operations
Enterprise Funds - Capital Projects
Direct Revenue/ Debt Proceeds
Beginning Balance
Transfer From Building Inspection Reserve
Transfer From Electric Utility
Transfer From Water Utility
Transfer ( To) From Cemetery
Transfer From Sewer Utility
Transfer From Solid Waste Enter.
Transfer From Assessment District
Loan From GF GC Res
Total Enterprise Funds - Cap. Proj.
Estimated Beginning Balance
TOTAL ESTIMATED RESOURCES
Special Internal
Revenue Enterprise Service
Funds Funds Funds
( 515,000) - -
( 536,209) - -
689,283 - -
- - -
( 374,826) 22,178,501 ( 194,156)
4,034,572 292,173,795 4,856,339
- 2,400,000 -
- 6,583,500 -
- - -
- ( 746,493) -
- ( 109,642) -
- - -
- ( 40,310) -
- 170,000 -
- - -
- 48,000 -
- 8,305,055 -
1,693,550 - 1,480,208
$ 5,728,122 $ 300,478,850 $ 6,336,547
21
ESTIMATED RESOURCES
GENERAL OPERATING FUNDS
Fund Number 001 441
Debt Service
Revenue Accounts TOTALS General Fund Fund
Taxes:
Property Tax:
Secured $ 1 8,315,000 $ 1 8,315,000 $ -
Unsecured 1,800,000 1,800,000 -
Subtotal - Property Tax 2 0,115,000 2 0,115,000 -
Sales Tax 3 7,053,000 3 7,053,000 -
Transient Occupancy Tax 7,904,000 7,904,000 -
Franchise Tax 2,561,000 2,561,000 -
Document Transfer Tax 666,000 666,000 -
Total - Taxes 6 8,299,000 6 8,299,000 -
Licenses and Permits:
Business Licenses 800,400 800,400 -
Building Permits 1,900,000 1,900,000 -
Electric Permits 200,000 200,000 -
Plumbing Permits 120,000 120,000 -
Mechanical Permits 110,000 110,000 -
Street Opening Permits 1,500 1,500 -
Misc. Licenses and Permits 300 300 -
Total - Licenses and Permits 3,132,200 3,132,200 -
Fines and Penalties:
Traffic Fines 512,730 512,730 -
California Vehicle Code 190,000 190,000 -
Library Fines 205,000 205,000 -
Collection Charges 400,000 400,000 -
Total - Fines and Penalties 1,307,730 1,307,730 -
Use of Money and Property:
Interest Income 6,497,640 6,361,000 136,640
Rents and Royalties 9,882,000 9,882,000 -
Miscellaneous Money and Property 6,000 6,000 -
Total - Money and Property 1 6,385,640 1 6,249,000 136,640
Revenue from Other Agencies:
Vehicle License Fee 1,290,000 1,290,000 -
Homeowner Tax Relief 190,000 190,000 -
Misc. Revenue from Other Agencies 808,724 468,908 339,816
Total - Revenue from Other Agencies 2,288,724 1,948,908 339,816
22
ESTIMATED RESOURCES
GENERAL OPERATING FUNDS
Fund Number 001 441
Debt Service
Revenue Accounts TOTALS General Fund Fund
Charges for Current Services:
Recreation Programs 1,162,010 1,162,010 -
Engineering Fees 317,323 317,323 -
Planning and Zoning Fees 150,000 150,000 -
Inter- department Services 1 0,881,663 1 0,881,663 -
Plan Check and Sign Fees 1,000,000 1,000,000 -
Fire Prevention and Haz Mat Fees 1,225,000 1,225,000 -
Police Monitored Alarm Fees 110,000 110,000 -
Recovery Fee - Towed Vehicles 108,000 108,000 -
Misc. Charges for Current Services 811,800 811,800 -
Total - Charges for Current Services 1 5,765,796 1 5,765,796 -
Other Revenue:
Contribution In- lieu of Taxes 1 2,165,295 1 2,165,295 -
Miscellaneous Other Revenue 225,000 225,000 -
Total - Other Revenue 1 2,390,295 1 2,390,295 -
TOTAL DIRECT REVENUE 1 19,569,385 1 19,092,929 476,456
Contingent / Reserve Transfers and Designations:
Transfer From ( To) Gen. Cont. Reserve - -
Transfer From ( To) Land Sale Reserve - -
Transfer From Working Capital Reserve 2,107,766 2,107,766 -
Total - Contingent / Reserve Transfers 2,107,766 2,107,766 -
Inter - Fund Transfers:
Transfer ( To) Debt Service - ( 5,885,218) 5,885,218
Transfer From Sports & Open Space Auth. 2,328,731 2,328,731 -
Transfer From RDA 1,233,713 1,233,713 -
Transfer To Maintenance Districts ( 689,283) ( 689,283) -
Transfer From Comm. Svcs. HUD Programs 536,209 536,209 -
Transfer From Gas Tax ( 2107) 515,000 515,000 -
Transfer From Trust Funds 900 900 -
Total - Inter- Fund Transfers 3,925,270 ( 1,959,948) 5,885,218
TOTAL ESTIMATED RESOURCES $ 125,602,421 $ 119,240,747 $ 6,361,674
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 60,032 $ 327,602 $ 332,430
Charges for Current Services:
Environmental Compliance Fee 1 10,000 - 110,000
Miscellaneous Charges for Current Services - - -
Total - Charges for Current Services 1 10,000 - 110,000
TOTAL DIRECT REVENUE 7 70,032 327,602 442,430
Contingent / Reserve Transfers:
Transfer From General Fund Capital Projects Res. 6 ,167,859 30,000 6,137,859
Resources After Contingent / Reserve
Transfers and Loans 6,937,891 357,602 6,580,289
Inter - Fund Transfers:
Transfer From Building Inspection Reserve 3 84,000 - 384,000
Transfer From Comm. Internal Service Fund 7 0,000 - 70,000
Transfer From Electric Utility 7 46,493 30,000 716,493
Transfer From Water Utility 1 09,642 - 109,642
Transfer From Sewer Utility 4 0,310 - 40,310
Transfer From Cemetery 4 ,700 - 4,700
Transfer From Solid Waste Utility 6 2,220 - 62,220
Transfer From RDA 1 ,900 - 1,900
Transfer From Assessment District 1 8,000 18,000 -
Total - Inter- Fund Transfers 1 ,437,265 48,000 1,389,265
Estimated Beginning Balance 3 ,304,000 2,814,000 490,000
TOTAL ESTIMATED RESOURCES $ 1 1,679,156 $ 3,219,602 $ 8,459,554
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
Maintenance
Revenue Accounts TOTALS Districts
Use of Money and Property:
Interest Income $ - $ -
Total - Use of Money and Property - -
Revenue from Other Agencies:
Community Development Block Grant 1,044,474 -
HOME Program 657,740 -
Gas Tax ( 2105, 2106, 2107, 2107.5, 2126) 1,950,000 -
Misc. Revenue from Other Agencies 78,605 -
Total - Revenue from Other Agencies 3,730,819 -
Charges for Current Services:
Misc. Charges for Current Srvcs. 678,579 678,579
Total - Charges for Current Services 678,579 678,579
TOTAL DIRECT REVENUE 4,409,398 678,579
Inter - Fund Transfers:
Transfer From ( To) Fund Reserves ( 12,900) ( 12,900)
Transfer From ( To) General Fund ( 361,926) 689,283
Transfer From RDA Housing - -
Total - Inter- Fund Transfers ( 374,826) 676,383
Estimated Beginning Balance 1,693,550 1,242
TOTAL ESTIMATED RESOURCES $ 5,728,122 $ 1,356,204
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
Transfer From RDA Housing
Total - Inter- Fund Transfers
Estimated Beginning Balance
TOTAL ESTIMATED RESOURCES
041 562 521 522
524
Community Streets and
Recreation Services Highways
Programs HUD Program Funds
$ - $ - $ -
- - -
- 1,044,474 -
- 657,740 -
- - 1,950,000
78,605 - -
78,605 1,702,214 1,950,000
- - -
- - -
78,605 1,702,214 1,950,000
- - -
- ( 536,209) ( 515,000)
- -
- ( 536,209) ( 515,000)
- 82,208 1,610,100
$ 78,605 $ 1,248,213 $ 3,045,100
27
ESTIMATED RESOURCES
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 $ 1 6,954,865 $ 1 5,578,765 $ 525,000
Rents and Royalties 1 ,755,200 1 ,612,500 70,700
Total - Money and Property 1 8,710,065 1 7,191,265 595,700
Revenue from Other Agencies:
Misc. Revenue from Other Agencies 5 59,000 - -
Total - Revenue from Other Agencies 5 59,000 - -
Charges for Current Services:
Customer Service Charges 2 31,940,642 1 99,988,742 18,875,000
Connection Charges 1 ,000,000 - -
Sewer Charges 1 9,220 - -
Refuse Collection Charges 1 2,982,000 - -
Clean- up Campaign Charges 1 ,400,000 - -
Household Hazardous Waste Charges 7 2,000 - -
Inter- department Services 5 37,800 4 65,000 -
Sales - Facilities, Labor & Other 5 86,000 - -
Solar Installation and Service Charge 9 6,400 - 96,400
Sales - Bulk Power, Steam Sales, Gas Wells 1 ,636,667 1 ,636,667 -
Miscellaneous Charges for Current Services 3 53,000 - 352,00