city of santa clara

City of Santa Clara

Agenda Report

1500 Warburton AvenueSanta Clara, CA 95050

santaclaraca.gov@SantaClaraCity

21-846 Agenda Date: 8/24/2021

REPORT TO COUNCIL

SUBJECTAction on Monthly Financial Status and Investment Reports for May 2021

COUNCIL PILLAREnhance Community Engagement and Transparency

BACKGROUNDIn compliance with the Charter of the City of Santa Clara and the adopted Investment Policy, the May2021 Monthly Financial Report and Investment Report are submitted for your information.

In accordance with City Council Policy 051 - Donations to the City, included in this report is a monthlyactivity and annual summary of donations received by department. Although the requirement of thepolicy is to report quarterly, in its ongoing effort to streamline reporting, the City will include thisinformation monthly in the financial status report.

DISCUSSION

Monthly Financial Status Report (Attachment 1)The attached report summarizes the City’s financial performance as of May 31, 2021. Financialanalysis for the report is provided for the General Fund, select Special Revenue Funds, EnterpriseOperating Funds, and Capital Improvement Program Funds.

Attachment 1 shows that General Fund revenues were trending below the budget at 82.7% throughMay 2021. Excluding transfers that occur at the beginning of the year, this figure drops to 78.9% ofthe General Fund revenues received through May. Some revenue categories are lower due to thetiming of payments (e.g., sales tax), but several categories are tracking below as a result of COVID-19 impacts. Downward revenue adjustments of $17.3 million were approved on March 9, 2021 toaddress the majority of the lower revenue collections. While not reflected in this report, additionaldownward revenue adjustments were approved on June 21, 2021 as part of the April MonthlyFinancial Report, offset by expenditure savings.

As shown in Attachment 1, General Fund expenditures were at 83.4% of budget through May 31,2021. Excluding transfers, this figure drops to 81.4% expended, which is below the par level of91.7%. Several cost-control measures that were implemented last fiscal year remain in place togenerate expenditure savings to partially offset the drop in revenues associated with COVID-19.These expenditure reduction measures include controls on: hiring, discretionary overtime, use of as-needed staff, marketing, travel, technology and vehicle purchases. Overall, year-end savings areexpected to be generated and a portion of these savings were used to offset lower revenuecollections as well as COVID-19 related expenditures as approved in the April Monthly Financial

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21-846 Agenda Date: 8/24/2021

Report.

Total revenues for Enterprise Funds (Electric, Water, Sewer, Cemetery, Solid Waste, and WaterRecycling) were at 82.5% of the budget. Total Enterprise Fund expenses were at 77.7% through May.Total revenue for Special Revenue Funds (Housing funds) were at 17.1% of the budget, while totalexpenditures were at 9.7% of budget.

In the month of May, the City received donations of $435 bringing the year-to-date total to $92,918. Asummary of donations is included in Attachment 1.

With the shelter-in-place and other actions residents and businesses have been taking to reduce thespread of COVID-19, economic activity in this region and throughout the country experienced asignificant decline. However, over the last several months, economic activity has improved from thesevere drop off experienced in spring 2020. Economic conditions are expected to continue toimprove in 2021. According to the March 2021 UCLA Anderson Forecast, robust economic growthand recovery is expected in 2021, following the worst economic decline in the last 60 years. TheJune 2021 UCLA Anderson Forecast continued to predict a robust recovery while also acknowledgingthat the recovery may not be smooth and some sectors are not expected to recover until much later.In the California Forecast, the leisure and hospitality sector was expected to recover last. In addition,with the recent spike in COVID variants, recovery may be prolonged and/or delayed as it continues toimpact full reopening of businesses.

On a national level, the unemployment rate remains high at 5.8% in May 2021. This rate, however,was well below the record setting high of 14.7% in April 2020 and below the peak reached during thelast recession a decade ago, when unemployment briefly hit 10%. In the first quarter 2021, the GrossDomestic Product (GDP) increased by approximately 6.4%, following a 4.3% increase in the GDP inthe fourth quarter 2020. While there was significant improvement in the last two quarters, real GDPfor the fourth quarter 2020 remains 0.9% below the level experienced in the fourth quarter of 2019(the last quarter prior to the onset of COVID-19).

The unemployment rate in this region continues to outperform the nation. The unadjustedunemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was

4.7% in May, down from a revised 5.0% in April 2021, but higher than the April 2020 level of 3.1%.

While economic conditions have started to improve, Santa Clara’s General Fund revenues havebeen significantly impacted this fiscal year and this impact is expected to continue over the longerterm as certain sectors take time to recover. In FY 2020/21, a General Fund shortfall of almost $23million was addressed in the revised FY 2020/21 budget approved in June 2020. This budget wassolved with the use of the Budget Stabilization Reserve. Additional downward revenue adjustmentsand budget balancing actions were approved on March 9, 2021, and further adjustments wereapproved on June 22, 2021 as part of the April Monthly Financial Report. Discussion of the COVID-19 impacts and the General Fund deficit is included in Attachment 1.

Monthly Investment Report (Attachment 2)All securities held by the City of Santa Clara as of May 31, 2021 were in compliance with the City’sInvestment Policy Statement regarding current market strategy and long-term goals and objectives.All securities held are rated “A” or higher by two nationally recognized rating agencies. There is




21-846 Agenda Date: 8/24/2021

adequate cash flow and maturity of investments to meet the City’s needs for the next six months.

The City’s investment strategy for May 2021 was to invest funds not required to meet currentobligations, in securities listed in the prevailing Investment Policy Statement, with maturities not toexceed five years form the date of purchase. This strategy ensures safety of the City’s funds,provides liquidity to meet the City’s cash needs, and earns a reasonable portfolio return of 1.41%.

ENVIRONMENTAL REVIEWThe action being considered does not constitute a “project” within the meaning of the CaliforniaEnvironmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is afiscal activity that does not involve any commitment to any specific project which may result in apotential significant impact on the environment.

FISCAL IMPACT

There is no fiscal impact associated with this report.

COORDINATIONThis report has been coordinated with the City Attorney’s Office.

PUBLIC CONTACTPublic contact was made by posting the Council agenda on the City’s official-notice bulletin boardoutside City Hall Council Chambers. A complete agenda packet is available on the City’s websiteand in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to aSpecial Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’sOffice at (408) 615-2220, email [email protected] <mailto:[email protected]>.

RECOMMENDATIONNote and file the Monthly Financial Status and Investment Reports for May 2021 as Presented.

Reviewed by: Kenn Lee, Director of FinanceApproved by: Deanna J. Santana, City Manager

ATTACHMENTS1. Monthly Financial Status Report May 20212. Monthly Investment Report May 2021




_____________________________________________________________________

MONTHLY FINANCIAL STATUS REPORT

May 2021

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City of Santa Clara

Financial Status Report as of May 31, 2021

This report summarizes the City’s financial performance for the month ended May 31, 2021. Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds. Financial information included in this report is unaudited.

General Fund

The General Fund is the major operating fund for the City and includes multiple programs, services, and activities for the residents and businesses of the City. The adopted budget for operating revenues and expenditures for fiscal year 2020/21 was $286.9 million. The amended budget for revenues and expenditures was amended to $287.5 million to reflect carryover appropriations from fiscal year 2019/20 and various budget amendments approved by the City Council through May 2021, including the COVID-19 Phase 1 budget rebalancing actions.

General Fund revenues are currently expected to end the year below budget due to the COVID-19 impacts. When the FY 2020/21 budget was adopted, there was limited data regarding the COVID-19 impacts and significant uncertainty regarding the length and depth of the associated shutdowns. The budget did assume reductions in various categories to account for the anticipated COVID-19 impacts, with the largest reductions in the transient occupancy tax and sales tax categories. The actual impact on City revenues has been more severe than anticipated. In response to this impact, the City Council approved budget actions on March 9, 2021 that reduced the FY 2020/21 revenue estimates by $17.3 million, addressing the majority of the lower anticipated collections. Additional revenue adjustments were approved in the April Monthly Financial Report, offset by expenditure savings.

Through May, departmental expenditures are tracking below budget and this trend is expected to continue as departments continue to control expenditures through various cost control measures. Some departments have also significantly changed their operations to comply with the COVID-19 safety measures. As part of the March 9, 2021 budget balancing actions, expenditure savings were brought forward to offset $17.3 million of the lower revenue collections. Additional savings are expected by year end based on current trends and a portion of these savings were used to offset lower revenue collections.

With the shelter-in-place and other actions residents and businesses have been taking to reduce the spread of the virus, economic activity in this region and throughout the country was negatively impacted. However, this impact has been uneven, with a much more significant impact on low-wage workers and certain business sectors, such as leisure and hospitality, retail, and restaurants. Over the last several months, economic activity has improved from the severe drop off experienced in spring 2020, as reflected in the economic indicators.

On a national level, the unemployment rate decreased slightly from 6.1% in April 2021 to 5.8% in May 2021. This rate was well below the record setting high of 14.7% in April 2020. In May, the number of unemployed persons fell to 9.3 million. While the improvements in the labor market continue to reflect

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the resumption of activity that had been curtailed due to COVID-19, the pace of improvement has moderated in recent months.1

In the first quarter 2021, the Gross Domestic Product (GDP) increased by 6.4%, following a GDP increase of 4.3% in the fourth quarter 2020. The estimated increase in the first quarter reflected efforts to reopen businesses and resume some activities amidst COVID-19 safety precautions. In the first quarter reflects additional assistance from the government, including extended unemployment benefits and economic impact payments. It is important to note that the real GDP for the first quarter 2021 remains 0.9% below the level experienced in the fourth quarter of 2019.2

Impacts have also been experienced at the State and local level. After the State’s largest increase in the unemployment rate in April 2020, the California unemployment rate has dropped to 7.9% by May 2021. This is slightly lower compared to the 8.0% rate in April 2021. With the decrease in the

1 https://www.bls.gov/news.release/pdf/empsit.pdf 2 https://www.bea.gov/sites/default/files/2021-06/tech1q21_3rd_0.pdf

https://www.bls.gov/news.release/pdf/empsit.pdf

https://www.bea.gov/sites/default/files/2021-06/tech1q21_3rd_0.pdf

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unemployment rate between February and May, California has now regained nearly 51.8% of the 2.7 million jobs lost due to COVID-19 in March and April 2020.3

As shown in the chart below, the unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 4.7% in May 2021, down from a revised 5.0% in April 2021 but higher than the April 2020 level of 3.1%. Between May 2020 and May 2021, employment in this region increase by 55,700 jobs, or 5.4%.4 The largest increases were in leisure and hospitality (up 15,000 jobs), trade, transportation and utilities (up 12,200 jobs), and private educational and health services (up 8,300 jobs).

Chart 3: San José-Sunnyvale-Santa Clara Metropolitan Statistical Area Unemployment Rate

Economic conditions are expected to improve in 2021. According to the March 2021 UCLA Anderson Forecast, robust economic growth and recovery is expected in 2021, following the worst economic decline in the last 60 years.5 The June 2021 UCLA Forecast remains optimistic but acknowledges the historic reality that economic recoveries are never smooth. A robust recovery is still expected for the United States and California, with moderately higher inflation in the short term, housing and services driving the recovery, and employment levels recovering to previous peaks over the coming year. Some sectors, however, are not expected to recover until much later. As discussed in the California Forecast, the leisure and hospitality sector will recover last due to the depth of its declines.6 Staff will continue to monitor economic conditions and its impact on the City’s performance.

While economic conditions have started to improve, Santa Clara’s General Fund revenues have been significantly impacted this fiscal year and this impact is expected to continue over the longer term as certain sectors take time to recover. In FY 2020/21, a General Fund shortfall of almost $23 million was addressed in the revised FY 2020/21 budget approved in June 2020. This budget was solved with the use of the Budget Stabilization Reserve. As discussed above, additional downward revenue

3 https://edd.ca.gov/newsroom/unemployment-may-2021.htm 4 https://www.labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf 5 ULCA Anderson Forecast for the Nation and California, March 2021 Report 6 https://www.prnewswire.com/news-releases/ucla-anderson-forecast-pent-up-demand-for-leisure-and-hospitality-recreation-health-care-will-fuel-recovery-301303560.html

https://edd.ca.gov/newsroom/unemployment-may-2021.htm

https://www.labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf

https://www.prnewswire.com/news-releases/ucla-anderson-forecast-pent-up-demand-for-leisure-and-hospitality-recreation-health-care-will-fuel-recovery-301303560.html

https://www.prnewswire.com/news-releases/ucla-anderson-forecast-pent-up-demand-for-leisure-and-hospitality-recreation-health-care-will-fuel-recovery-301303560.html

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adjustments of $17.3 million were approved on March 9, 2021, and further adjustments were approved in the April Monthly Financial Report, offset by expenditure savings.

The City currently has $57.5 million in the Budget Stabilization Reserve to address any negative balance after factoring in the use of $22.7 million of this reserve in the FY 2020/21 budget. The FY 2020/21 Annual Report will provide the final reconciliation of the fiscal year and will include any necessary use of reserves if General Fund expenditure savings are not sufficient to offset lower revenue collections. There are other General Fund Reserves that amount to $29.8 million, but these reserves are designated for specific purposes. These reserves can be used by an act of Council.

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General Fund Revenues

As of May 31, 2021, $186.2 million or 79% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $51.6 million have occurred as budgeted.

Adopted Budget

Amended Budget

Actual Through 05/31/2021

Percentage Received


$ Change From

Prior YearPercentage

Change

TAXESSales Tax 55,600,000$ 55,600,000$ 41,180,474$ 74.07% 43,124,235$ (1,943,761)$ -4.51%Property Tax 66,982,000 66,982,000 57,163,408 85.34% 54,446,250 2,717,158 4.99%Transient Occupancy Tax 17,625,000 3,625,000 2,221,617 61.29% 15,283,812 (13,062,195) -85.46%Other Taxes 5,938,000 5,938,000 4,676,548 78.76% 4,914,439 (237,891) -4.84%

Total Taxes 146,145,000 132,145,000 105,242,047 79.64% 117,768,736 (12,526,689) -10.64%

LICENSES & PERMITSBusiness Licenses 934,000 934,000 756,762 81.02% 785,647 (28,885) -3.68%Fire Operation Permits 2,375,000 2,375,000 1,680,643 70.76% 1,840,881 (160,238) -8.70%Building Permits 5,700,000 5,700,000 5,795,642 101.68% 4,450,949 1,344,693 30.21%Electric Permits 475,000 475,000 1,071,937 225.67% 543,008 528,929 97.41%Plumbing Permits 428,000 428,000 744,669 173.99% 497,206 247,463 49.77%Mechanical Permits 380,000 380,000 846,597 222.79% 440,397 406,200 92.23%Miscellaneous Permits 92,000 92,000 56,271 61.16% 58,435 (2,164) -3.70%

Total Licenses & Permits 10,384,000 10,384,000 10,952,521 105.47% 8,616,523 2,335,998 27.11%

FINES & PENALTIES 1,570,000 1,320,000 328,566 24.89% 1,124,951 (796,385) -70.79%INTERGOVERNMENTAL 226,000 1,373,826 2,168,960 157.88% 5,900,502 (3,731,542) -63.24%CHARGES FOR SERVICES 37,174,855 35,327,855 28,834,681 81.62% 31,484,340 (2,649,659) -8.42%CONTRIBUTION IN LIEU 23,699,830 23,699,830 22,314,861 94.16% 22,305,502 9,359 0.04%USE OF MONEY & PROPERTY

Interest 5,246,000 4,434,172 1,611,314 36.34% 3,161,430 (1,550,116) -49.03%Rent 9,407,909 9,407,909 8,249,169 87.68% 7,880,072 369,097 4.68%

Total Use of Money & Property 14,653,909 13,842,081 9,860,483 71.24% 11,041,502 (1,181,019) -10.70%

MISCELLANEOUS REVENUES 350,000 4,337,922 4,296,128 99.04% 2,000,782 2,295,346 114.72%LAND PROCEED - 4,050,000 - 0.00% 164,606 (164,606) -100.00%

OTHER FINANCING SOURCESOperating Transfer In - Storm Drain 1,460,000 1,460,000 1,460,000 100.00% 1,398,145 61,855 4.42%Operating Transfer In - Reserves 38,952,083 39,468,333 39,468,333 100.00% 14,154,274 25,314,059 178.84%Operating Transfer In - Fund Balances(2) - 4,273,692 4,273,692 100.00% 5,338,670 (1,064,978) -19.95%Operating Transfer In - Miscellaneous 2,527,419 6,403,073 6,403,073 100.00% 1,736,115 4,666,958 268.82%

Total Other Financing Sources 42,939,502 51,605,098 51,605,098 100.00% 22,627,204 28,977,894 128.07%

STADIUM OPERATIONCharges for Services 9,102,263 8,773,263 2,155,626 24.57% 7,767,941 (5,612,315) -72.25%Rent and Licensing 647,500 647,500 - 0.00% 639,410 (639,410) -100.00%

Total Stadium Operation 9,749,763 9,420,763 2,155,626 22.88% 8,407,351 (6,251,725) -74.36%

TOTAL GENERAL FUND 286,892,859$ 287,506,375$ 237,758,971$ 82.70% 231,441,999$ 6,316,972$ 2.73%

(1) Negative sales tax revenue resulting from accrual of revenue that has not yet been received. (2) The Operating Transfer In - Fund Balances includes the carryover encumbrances of open purchase orders as of June 30, 2020 and mid year budget amendment from reserves.

Function

CITY OF SANTA CLARAGENERAL FUND

REVENUES OVERVIEW AND COMPARISON BY TYPE

FISCAL YEAR 2020/21 PY REVENUE COMPARISON

Revenues (excluding reserves) are tracking approximately 14.5% lower than collections through the same period last fiscal year. Revenues were below the prior year primarily due to lower activity levels this fiscal year in certain areas, such as transient occupancy tax and fines and penalties, and a one-

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time settlement payment of $5.0 million that was received last year. Revenues are currently expected to end the year below budget in certain areas as a result of the COVID-19 impacts as discussed below. On March 9, 2021, budget actions were approved to reduce revenues by $17.3 million, addressing the majority of the lower collections this year. Additional adjustments were approved as part of the April Monthly Financial Report, offset by expenditure reductions. General Fund Revenues

Sales Tax: The City of Santa Clara sales tax rate is 9.0%, of which the City receives 1.0%. As of May 31, 2021, $41.2 million has been collected. This reflects lower collections than through the same period last fiscal year by $1.9 million (down about 4.5%). After a decline of 15.4% in the second quarter 2020, cash receipts were down 6.4% in the third quarter 2020 and 7.4% in the fourth quarter 2020, followed by growth of 1.2% in the first quarter 2021. However, the growth in the first quarter 2021 when compared to the first quarter 2020 was due primarily to the timing of payments. Collections in the first quarter of the prior year were understated because businesses were given an option to delay payment in that quarter due to COVID. The local economic activity in the first quarter 2021 was actually down 14.8%, with declines in all sectors except Transportation. The quarterly activity by sector was as follows: Food Products (down 30.5%), General Retail (down 6.4%), Construction (down 13.0%), Transportation (up 14.0%), and Business to Business (down 21.5%). Based on actual collections in the first three quarters and some assumed improvement in the fourth quarter with the continued lessening of the COVID-19 safety precautions, it is anticipated that revenues may fall below the budgeted estimate of $55.6 million by approximately $1 million - $2 million.

Property Tax: Property tax receipts totaled $57.2 million through May, which is above collections through the same period last year. The majority of property tax revenue is collected in February and April each year. Based on the latest estimates from the County of Santa Clara, property tax receipts are estimated to total $67.4 million, which is 0.6% above the budgeted estimate of $67.0 million. This estimate includes excess Education Revenue Augmentation Fund (ERAF) revenue of $3.3 million and reflects the latest information from the County. Beginning in 1992, agencies have been required to reallocate a portion of property tax receipts to the ERAF, which offsets the State’s General Fund contributions to school districts under Proposition 98. However, once there are sufficient funds in ERAF to fulfill obligations, the remainder is to be returned to the taxing entities that contributed to it. The estimated property Tax receipts would have been higher if the City’s receipts had not been negatively impacted by a recent court decision that changes how residual tax increment from former redevelopment agencies is distributed. This resulted in a retroactive negative adjustment of $2.1 million.

Transient Occupancy Tax (TOT): TOT is calculated as a percentage of City hotel/motel room charges. The City’s current TOT rate is 9.5%. Through May, $2.2 million has been received in this category, which is down 85% from the $15.3 million received though the same period last fiscal year. TOT has been impacted severely by COVID-19. Based on the extremely low collection level, the revenue estimate was adjusted downwards by $14.0 million to $3.6 million on March 9, 2021 as part of the budget rebalancing actions. Collections are expected to end the year below the revised estimate.

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Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected just under $4.7 million through May, which is approximately 78.8% of the budgeted estimate of $5.9 million. Overall, receipts are tracking below the prior year collection level of $4.9 million. Both documentary transfer tax and franchise tax collections are lower than through the same period last fiscal year. It is anticipated that this category will end the year lower than the budgeted estimate.

Licenses & Permits: Includes business licenses, building permits, and other building and planning permits and fees. Overall, licenses and permits revenue collections are tracking well above par with receipts totaling $10.9 million, or 105% of the budget of $10.4 million. These collections are significantly higher than the collection level experienced through the same period last fiscal year. Activity in the building, electric, plumbing, and mechanical permit accounts have seen the highest growth compared to last year. For the building development revenues, any excess revenues over expenditures will be transferred to the new Building Development Services Fund as part of the FY 2020/21 Budgetary Year-End actions. While building development revenues are exceeding the budgeted estimates, the other revenues in this category are tracking to end the year approximately $1.0 million below budget, including business licenses, parking permits and fire permits.

Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue collected in this category through May of approximately $0.3 million is lower than the prior year actual collection level of $1.1 million as a result of lower activity levels in the collection charges, traffic fines, and library fines accounts. Given restricted activity levels as a result of COVID-19, collections in this category are anticipated to fall well below the budgeted estimate. Based on the lower collection level, this revenue estimate was reduced to $1.3 million on March 9, 2021. A further downward adjustment of $750,000 was approved by Council on June 22, 2021 as part of the April Monthly Financial Report, bringing the budget to $0.6 million.

Intergovernmental: Includes motor vehicle fees, state homeowner tax relief, state mandated reimbursement and redistribution of land sale proceeds and ground leases from the Successor Agency. Through May 31, 2021, approximately $2.1 million has been collected, which exceeds the budgeted estimate of $1.3 million. The collections through May reflect a portion of mutual aid reimbursement received for the Fire Department. This collection level is well below the prior fiscal year level of $5.9 million due to a one-time settlement payment of $5.0 million received last year. The Fire mutual aid reimbursements, along with additional reimbursements expected to be received this year, were allocated to the Fire Department to cover the associated costs in that department as part of both the March and the April Monthly Financial Reports approved by Council. However, the April actions, approved on June 22, 2021, are not yet reflected in this report.

Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through May 31, 2021, collections totaled approximately $28.8 million or 81.6% of the budget. This reflects an 8.4% decrease compared to last year’s collections through the same period of $31.5 million, particularly in the plan check and sign fees, planning and zoning fees, fire construction permits, interdepartmental services, and miscellaneous charges for services (includes parks and recreation fees). As a result of

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the COVID-19 safety precautions, the revenues from various recreational activities are expected to fall well below the budget. As part of the budget rebalancing actions, a downward adjustment to this revenue category of $2.2 million was approved on March 9, 2021. Collections, however, are still tracking below this revised estimate of $35.3 million.

Contribution in Lieu: In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues for services rendered. Through May, $22.3 million has been received which is on par for this time of year. This collection level, however, is based on the budgeted estimate and will be trued up at the end of the fiscal year.

Use of Money & Property: Includes realized investment income and rental income. Interest income and rent revenue collections totaled $9.9 million, or 71.2% of the budget. The collections through May are below the prior year collections of $11.0 million, primarily as a result of lower interest earnings due to lower interest yields and prior year accruals. Receipts are tracking to end the year below budget and a downward adjustment of $800,000 was approved as part of the April Monthly Financial Report on June 22, 2021.

Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through May, collections of $4.3 million are almost at the budgeted level of $4.3 million. This collection level is significantly higher than collections through the same period last fiscal year due to the receipt of one-time funds this year. Finance staff identified various special assessment district funds with remaining balances. On October 13, 2020, the City Council approved the resolution to treat the remaining balances in these special assessment district funds as unclaimed funds. The significant increase in collections was the result of the recognition of these unclaimed funds.

Stadium Operation: The revenue for Stadium Operations totaled approximately $2.2 million through May 31, 2021, which is much lower than collections through the same period last fiscal year. The budget for charges for services includes public safety cost reimbursement for NFL and Non-NFL events, reimbursement for general and administrative staff time, and parking revenue. Due to the COVID-19 pandemic, events at the Stadium have either been cancelled or rescheduled causing the decline in parking permit revenue and reimbursement for public safety costs. Lease revenue, specifically Senior and Youth Fees and Tasman Lot parking revenue, is projected to fall under budget this fiscal year and is also related to the cancellation or rescheduling of Stadium Events. While revenues are significantly below budget, the associated expenditures are also well below budget. Budget actions were approved by the City Council on June 22, 2021 as part of the April Monthly Financial Status Report to reduce both the budgeted revenue estimate and the expenditure budget by $4.0 million.

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General Fund Expenditures

As of May 31, 2021, $240 million or 83.4% of the General Fund operating budget was expended. Overall, expenditures are tracking below the par level of 91.7% through May. This reflects savings in the departmental and stadium authority categories, while the transfer category is fully expended. Departmental expenditures totaled $207.7 million, or 81.4% of the budget, which includes Stadium expenditures of $1.4 million. Several cost-control measures that were implemented last fiscal year remain in place to generate expenditure savings to partially offset the drop in revenues associated with COVID-19. These measures include a hiring freeze and controls around overtime, as-needed staff, marketing, travel, technology, and vehicle purchases. With these measures and restricted activity levels, expenditures are expected to end the year below budget and help offset the lower revenues. Downward adjustments of $17.3 million were approved on March 9, 2021 as part of the rebalancing actions. Additional downward adjustments were approved as part of the April Monthly Financial Report to offset the lower revenues as well as COVID-19 related costs in the Other City Departments Operating Grant Trust Fund.

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Adopted BudgetAmended Budget


Percentage Used


$Change From

Prior YearPercentage

Change

GENERAL GOVERNMENTNon-Departmental 7,849,688$ 10,885,796$ 2,811,812$ 25.83% 3,468,043$ (656,231)$ -18.92%City Council 834,241 842,476 662,423 78.63% 810,841 (148,418) -18.30%City Clerk 2,070,555 1,887,004 1,538,082 81.51% 1,046,427 491,655 46.98%City Manager 6,125,034 5,671,841 4,452,498 78.50% 5,554,219 (1,101,721) -19.84%City Attorney 2,716,125 2,557,066 2,095,519 81.95% 1,951,204 144,315 7.40%Human Resources 4,477,933 4,482,492 2,839,498 63.35% 3,618,315 (778,817) -21.52%Finance 17,456,419 17,317,854 14,252,950 82.30% 13,098,191 1,154,759 8.82%Total General Government 41,529,995 43,644,529 28,652,782 65.65% 29,547,240 (894,458) -3.03%

PUBLIC WORKS 24,287,567 24,097,107 20,507,368 85.10% 21,314,973 (807,605) -3.79%COMMUNITY DEVELOPMENT 17,233,763 18,055,588 12,479,594 69.12% 12,422,009 57,585 0.46%PARKS AND RECREATION 22,987,124 18,238,524 15,394,483 84.41% 18,522,102 (3,127,619) -16.89%

PUBLIC SAFETYFire 58,731,539 58,229,686 53,704,862 92.23% 50,553,338 3,151,524 6.23%Police 78,033,073 74,498,979 67,975,690 91.24% 67,651,948 323,742 0.48%Total Public Safety 136,764,612 132,728,665 121,680,552 91.68% 118,205,286 3,475,266 2.94%

LIBRARY 11,905,848 11,268,412 7,613,292 67.56% 9,269,901 (1,656,609) -17.87%

DEPARTMENTAL TOTAL 254,708,909 248,032,825 206,328,071 83.19% 209,281,511 (2,953,440) -1.41%

OTHER FINANCING USESOperating Transfer Out - Miscellaneous 10,445 1,014,286 1,014,286 100.00% 748,445 265,841 35.52%Operating Transfer Out - Debt Services 2,500,344 2,500,344 2,500,344 100.00% 1,710,474 789,870 46.18%Operating Transfer Out - Maintenance Dtrct 990,929 926,920 926,920 100.00% 917,331 9,589 1.05%Operating Transfer Out - Cemetery 771,769 771,769 771,769 100.00% 703,490 68,279 9.71%Operating Transfer Out - CIP 19,678,672 19,678,672 19,678,672 100.00% 11,643,673 8,034,999 69.01%Operating Transfer Out - Reserves 924,654 7,270,948 7,270,948 100.00% 879,200 6,391,748 727.00%Total Other Financing Uses 24,876,813 32,162,939 32,162,939 100.00% 16,602,613 15,560,326 93.72%

STADIUM OPERATION 7,307,137 7,310,611 1,399,815 19.15% 6,302,937 (4,903,122) -77.79%

TOTAL GENERAL FUND 286,892,859$ 287,506,375$ 239,890,825$ 83.44% 232,187,061$ 7,703,764$ 3.32%

Function

CITY OF SANTA CLARAGENERAL FUND

EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION

FISCAL YEAR 2020/21 PY EXPENDITURES COMPARISON

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City of Santa Clara


General Fund Expenditures

Below is an explanation of certain budget to actual expenditure variances by program.

Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. Through May, expenditures totaled $2.8 million, or 25.8% of the budget. Lower expenditures are primarily attributable to the materials, services, and supplies category, which includes contractual services, operating supplies, and advertising. This category also includes funding of $1.8 million for separation payouts that was reallocated to help offset COVID-19 related costs and lower revenues as part of the April Monthly Financial Report. In addition, this category includes $4.1 million that was carried over from FY 2019/20 for a developer loan associated with the construction of an affordable housing project. This loan payment has not yet occurred through May but may be processed by year-end.

City Council: Through May, expenditures totaled $0.6 million, or 78.6% of budget, which is below par. Compared to the same period through last fiscal year, this reflects a spending decrease of approximately 18% due primarily to lower as needed and overtime staffing costs. As a result of the cost reduction measures implemented city-wide, these costs have been reduced.

City Manager: The actual expenditures through May were at 78.5% of the budget, which is below par for this time of the year. Expenditures are approximately 19.8% lower compared with the spending level through the same period last fiscal year. With expenditures tracking to end the year below budget, savings of $400,000 were reallocated to help offset COVID-19 related costs and lower revenues as part of the April Monthly Financial Report.

City Attorney: Actual expenditures through May totaled $2.1 million, which is 89.5% of the budget, which is below par. Spending is above the total expenditures through the same time last fiscal year by 7.4% due to one additional position approved by the City Council for FY 2020/21.

City Clerk: Through May, actual expenditures were tracking below budget at $1.5 million or approximately 81.5% of the budget. This reflects an increase of 47% over last year’s spending through the same period. The higher spending level is a result of Granicus contract costs that are paid every other year as well as the general election costs.

Community Development Department: This department consists of three divisions: Planning, Building, and Housing and Community Services. Through May, departmental expenditures of $12.5 million were at 69% of the budget, which is below par. This reflects slightly lower personnel costs as well as lower actual non-personnel costs. With expenditures tracking to end the year below budget, savings of $250,000 were reallocated to help offset COVID-19 related costs and lower revenues as part of the April Monthly Financial Report. This does not include the Building development-related savings that will be reallocated to the Building Development Services Fund as part of the FY 2020/21 Annual Report process.

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City of Santa Clara


Finance Department: Through May, the Department’s expenditures totaled $14.3 million, or 82.3% of the budget, which is below par. This expenditure level was approximately 8.8% higher than through the same period last year due primarily to higher spending related to two additional positions that were approved by the City Council in March 2020 and higher contractual services spending. With expenditures tracking to end the year below budget, savings of $500,000 were reallocated to help offset COVID-19 related costs and lower revenues as part of the April Monthly Financial Report.

Fire Department: Through May, actual expenditures in the General Fund totaled $53.7 million, or 92.2% of the budget, which is slightly above par (91.7%). These expenditures reflect a 6.2% increase from expenditures through the same period last fiscal year. All COVID-19 related expenditures have been charged centrally to the Other City Departments Operating Grant Trust Fund. The Fire Department has charged approximately $0.8 million to this fund. Combined with the $53.7 million charged in the General Fund, total Fire Department expenditures through May totaled $54.5 million, or 93.7% of budget. Mutual aid overtime costs, which are reimbursable, account for $1.3 million of the higher expenditure level. After adjusting for those mutual aid costs, total expenditures (including COVID costs), were tracking at 91.4% of the budget. While overall expenditures are tracking at budget, overtime spending was 243% expended through May. Taking the mutual aid into account, overtime spending is still tracking well above budget at 188%. While this overtime figure appears high, it is important to note that overtime is used to backfill for vacant positions and the vacancy savings offset overtime costs. On June 8, 2021, budget actions were approved as part of the March Monthly Financial Report to recognize mutual aid revenue received to date and allocate these funds to the Fire Department to offset the associated costs. Additional adjustments were approved in the April Monthly Financial Report to recognize and appropriate reimbursement revenue. These adjustments are necessary for the Fire Department to remain within its overall appropriation.

Library Department: Through May, actual expenditures totaled $7.6 million, or 67.5% of the budget, which is well below par and the prior year actuals of $9.3 million. COVID-19 restrictions have significantly impacted Library operations this year, resulting in lower expenditures. The April Monthly Financial Report included a budget amendment to reallocate expected year-end savings of $950,000 to help offset COVID-19 related costs and lower revenues, which was approved on June 22, 2021.

Parks and Recreation Department: Through May, actual expenditures totaled $15.4 million, or 84.4% of the budget, which is below par and the prior year actuals of $18.5 million. COVID-19 restrictions have significantly impacted parks and recreation operations this year, resulting in lower expenditures. The April Monthly Financial Report included a budget amendment to reallocate expected year-end savings of $400,000 to help offset COVID-19 related costs and lower revenues, which was approved on June 22, 2021.

Police Department: Expenditures through May are tracking at expected levels at $68 million, or 91.2% of the budget; this is on par with prior year expenditures through the same period. Similar to the Fire Department, Police Department expenditures related to COVID-19 have also been charged to the Other City Departments Operating Grant Trust Fund. Through April, charges to this fund totaled

13

City of Santa Clara


approximately $0.2 million. Accounting for the General Fund and Other City Departments Operating Grant Trust Fund, department expenditures totaled $68.2 million or 91.6% of budget, which is on par.

Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures totaled $1.4 million through May and are tracking below budgeted levels. Due to COVID-19, events at the Stadium have been cancelled or postponed causing a decrease in salary costs for public safety personnel and outside agency public safety costs. A downward adjustment of $4.0 million to the expenditure budget was approved as part of the April Monthly Financial Report and will help offset the lower Stadium revenue.

Special Revenue Funds

The table below is a summary of revenues and expenditures of select Special Revenue Funds as of May 31, 2021. The amended budget for both reflects carryover appropriations from fiscal year 2019/20 in addition to various budget amendments approved by the City Council through May 2021. Revenues totaled approximately $5.1 million, while expenditures totaled approximately $4.3 million through the end of May. Overall, revenues and expenditures are both tracking well below budgeted levels.

Actual Actual $Fund Adopted Amended Through Percentage Through Change From Percent

Description Budget Budget 5/31/2021 Received 5/31/2020 Prior Year Change

Housing Authority Fund 285,000$ 5,485,000$ 347,460$ 6.33% 285,554$ 61,906$ 21.68%City Affordable Housing Fund 781,703 6,787,703 568,400 8.37% 745,981 (177,581) -23.81%Housing Successor Fund 531,000 12,181,000 1,309,257 10.75% 1,129,472 179,785 15.92%Housing and Urban Development 5,150,000 5,289,384 2,860,133 54.07% 1,654,823 1,205,310 72.84%

TOTAL 6,747,703$ 29,743,087$ 5,085,250$ 17.10% 3,815,830$ 1,269,420$ 33.27%

Actual Actual $Fund Adopted Amended through Percentage through Change From Percent

Description Budget Budget 5/31/2021 Used 5/31/2020 Prior Year Change

Housing Authority Fund 552,222$ 7,287,273$ 132,982$ 1.82% 99,078$ 33,904$ 34.22%City Affordable Housing Fund 1,556,772 8,316,052 802,623 9.65% 588,208 214,415 36.45%Housing Successor Fund 5,964,944 22,811,614 563,626 2.47% 477,089 86,537 18.14%Housing and Urban Development 5,150,000 6,037,313 2,803,472 46.44% 2,241,528 561,944 25.07%

TOTAL 13,223,938$ 44,452,252$ 4,302,703$ 9.68% 3,405,903$ 896,800$ 26.33%

PRIOR YEAR EXPENDITURE COMPARISON

CITY OF SANTA CLARASPECIAL REVENUE FUNDS

REVENUE AND EXPENDITURE - OVERVIEW AND COMPARISON BY FUNDREVENUES - FISCAL YEAR 2020/21 PRIOR YEAR REVENUE COMPARISON

EXPENDITURES - FISCAL YEAR 2020/21

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City of Santa Clara


Governmental Capital Improvement Funds

The table below lists the total amended budget amounts for the Capital Improvement Funds, which consist of current year appropriations, prior year carryover balances in Governmental Capital Improvement Funds, and budget amendments approved through May 2021. As of May 31, 2021, these capital fund expenditures totaled $30.8 million, or 23.2% of the amended budget. As part of the adoption of the FY 2020/21 and FY 2021/22 budget, capital funds were carried over from the prior fiscal year for those projects that have not yet been completed. Adjustments to the capital carryover amounts based on actual year-end expenditures were approved as part of the FY 2019/20 year-end reconciliation process, which are reflected in the table below. The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program (CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.

EXPENDITURES - FISCAL YEAR 2020/21

ActualFund Current Year Prior Year Total Amended Through Percentage

Description Appropriation Carryforward Budget 5/31/2021 Used

Parks & Recreation 5,758,558$ 15,692,075$ 21,450,633$ 6,851,666$ 31.94%Streets & Highways 24,360,764 46,759,714 71,120,478 14,951,124 21.02%Storm Drain 4,489,447 7,427,038 11,916,485 1,658,972 13.92%Fire 290,796 771,878 1,062,674 32,643 3.07%Library 8,699 309,467 318,166 62,964 19.79%Public Buildings 1,737,751 6,193,227 7,930,978 351,865 4.44%General Gov't - Other 4,098,669 11,660,153 15,758,822 5,321,203 33.77%Related Santa Clara Developer 162,062 2,787,478 2,949,540 1,560,881 52.92%Tasman East Infrastructure Improvement Fund

- 175,757 175,757 39,990 22.75%

TOTAL 40,906,746$ 91,776,787$ 132,683,533$ 30,831,308$ 23.24%

CITY OF SANTA CLARA

SUMMARY OF EXPENDITURES GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS

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City of Santa Clara


Enterprise Funds

The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of May 31, 2021. Overall, revenues and expenditures are tracking below budgeted levels.

At the end of May 2021, both revenue and expenditures are tracking lower than last fiscal year.

Actual Actual $Fund Adopted Amended Through Percentage Through Change From Percent

Description Budget Budget 5/31/2021 Received 5/31/2020 Prior Year Change

Electric Utility Fund 515,406,680$ 515,406,680$ 435,167,422$ 84.43% 516,468,246$ (81,300,824)$ -15.74%Water Utility Fund 57,220,287 57,220,287 43,592,829 76.18% 43,805,934 (213,105) -0.49%Sewer Utility Fund 45,495,100 45,495,100 35,721,735 78.52% 35,272,419 449,316 1.27%Cemetery Fund 600,000 600,000 518,511 86.42% 392,029 126,482 32.26%Solid Waste Utility Fund 31,219,000 31,219,000 22,570,281 72.30% 23,118,227 (547,946) -2.37%Water Recycling Fund 7,064,710 7,384,241 4,813,381 65.18% 5,376,396 (563,015) -10.47%

TOTAL REVENUE 657,005,777$ 657,325,308$ 542,384,159$ 82.51% 624,433,251$ (82,049,092)$ -13.14%

Actual Actual $Fund Adopted Amended through Percentage through Change From Percent

Description Budget Budget 5/31/2021 Used 5/31/2020 Prior Year Change

Electric Utility Fund 474,259,218$ 476,796,024$ 371,249,017$ 77.86% 496,079,908$ (124,830,891)$ -25.16%Water Utility Fund 49,106,767 49,239,481 36,748,934 74.63% 37,862,467 (1,113,533) -2.94%Sewer Utility Fund 28,338,164 28,442,383 25,443,738 89.46% 25,050,077 393,661 1.57%Cemetery Fund 1,412,953 1,408,402 1,179,575 83.75% 1,067,940 111,635 10.45%Solid Waste Utility Fund 32,563,421 33,927,954 23,460,558 69.15% 20,915,647 2,544,911 12.17%Water Recycling Fund 5,867,938 6,190,317 5,172,141 83.55% 5,464,850 (292,709) -5.36%

TOTAL - Operating Appropriations

591,548,461$ 596,004,561$ 463,253,963$ 77.73% 586,440,889$ (123,186,926)$ -21.01%

PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2020/21

CITY OF SANTA CLARA ENTERPRISE OPERATING FUNDS

REVENUES AND EXPENSES - OVERVIEW AND COMPARISON BY FUND

REVENUES - FISCAL YEAR 2020/21 PRIOR YEAR REVENUE COMPARISON

Revenues in the electric (which also includes the Electric Debt Service Fund), water, and sewer utility (which also includes the Sewer Debt Service Fund) and water recycling funds are primarily from customer service charges. The activity levels for these customer service charges also impact the resource and production costs on the expenditure side for these funds. The lower the revenue from customer service charges, the lower the expenditures in the resource and production category.

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City of Santa Clara


A summary of expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actuals through May 2021 totaled approximately $61.4 million, or 23.4% of the amended budget. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2020/21 budget adoption process for those projects that have not yet been completed. Adjustments to the capital carryover amounts based on actual year-end expenditures were approved as part of the FY 2019/20 year-end reconciliation process which are reflected in the table below.

Prior Year

Actual ActualFund Current Year Prior Year Total Amended Through Percentage Through

Description Appropriation Carryforward Budget 5/31/2021 Used 5/31/2020

Electric Utility Fund 58,872,602$ 124,278,905$ 183,151,507$ 38,234,275$ 20.88% 25,221,862$ Street Lighting (1) 125,000 5,868,161 5,993,161 45,940 0.77% 76,094 Water Utility Fund 4,610,000 15,017,733 19,627,733 7,360,089 37.50% 1,581,879 Sewer Utility Fund 42,114,351 3,766,225 45,880,576 14,671,775 31.98% 56,376,774 Cemetery Fund 300,000 - 300,000 - 0.00% - Convention Center Capital Fun - 4,334,920 4,334,920 644,193 14.86% - Solid Waste Utility Fund 882,000 1,202,437 2,084,437 443,794 21.29% 391,355 Water Recycling Fund 550,000 - 550,000 2,063 0.38% -

TOTAL - CIP Appropriations

107,453,953$ 154,468,381$ 261,922,334$ 61,402,128$ 23.44% 83,647,964$

EXPENSES - FISCAL YEAR 2020/21

CITY OF SANTA CLARAENTERPRISE CAPITAL IMPROVEMENT FUNDS

SUMMARY OF EXPENSES

(1) Street Lighting fund is part of Electric Capital Improvement Funds

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Fund Reserves

By policy, City Council established the City’s General Contingency Reserve, under which reserves for Budget Stabilization and Capital Projects were established.

• Budget Stabilization Reserve is set aside for weathering economic downturns, emergency financial crisis, or disaster situations. The reserve target is equal to the expenditures of the City’s General Fund operations for three months (90-day or 25% General Fund Adopted Operating Budget). In FY 2020/21, the City Council approved an exception to the policy to allow the Reserve to drop below the 25% level.

• Capital Projects Reserve earmarks funds for the Capital Improvement Program. Other General Reserves and Enterprise Fund Reserves included in this report are highlighted as follows:

• Building Inspection Reserve accounts for surplus funds from user fees in the Community Development Department’s Building Inspection Division and is restricted to fund Building Division costs.

• Technology Fee Reserve is set aside to update and/or replace the City’s aging technology and to ensure internal controls are in compliance with current business standard and legal requirements.

• Land Sale Reserve is net proceeds from the sale of City-owned land, with interest earned on these funds available to be appropriated for General Fund operating expenditures. This reserve is available for appropriation by City Council action.

• The Electric Utility Reserve assures sufficient operating cash is available to ensure debt service coverage.

• The Replacement and Improvement Reserve in the Water and Sewer Utility Funds is for future capital improvement.

The table below summarizes select reserve balances.

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DETAIL OF SELECTED FUND RESERVE BALANCES:

GENERAL FUND ELECTRIC WATER SEWER

Budget Stabilization Reserve 57,458,039$ Capital Projects Reserve 5,720,211Land Sale Reserve 24,120,767Building Inspection Reserve 16,671,018Technology Fee Reserve 770,772Rate Stabilization Fund Reserve 44,898,011$ DVR Power Plant Contracts Reserve 78,163Replacement & Improvement 303,090$

TOTALS 104,740,806$ 44,976,174$ 303,090$ -$

CITY OF SANTA CLARARESERVE BALANCES

May 31, 2021

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Long-Term Interfund Advances

The funds below have made advances/loans which are not expected to be repaid within the next year. The balances reflected in the table are through May 2021. The loan from the General Fund to Parks and Recreation Facilities reflects proceeds from the Land Sale Reserve for the purchase of property at the Reed and Grant Sports Park. This loan is anticipated to be repaid by 25% of future Mitigation Fee Act revenue until the loan is paid in full. The Santa Clara Golf and Tennis Club advance was written off as part of the November Monthly Financial Report, which was approved by the City Council on March 12, 2021.

DETAIL OF LONG TERM INTERFUND ADVANCE BALANCES:

Fund Receiving Advance/LoanFund Making

Advance/Loan Type

Amount of Advance/

Commitment

Cemetery General Fund Advance 7,111,149$ Parks and Recreation Facilities General Fund Loan 9,033,044

TOTALS 16,144,193$

Donations to the City of Santa Clara

Donations received by department during the month of May 2021 and for fiscal year 2020/21 are shown in the table below.

Department May-21

Fiscal Year 2020/21

Year To Date Donor Designated Use

City Manager's Office 435$ 21,496$ Various Help Your NeighborNon-Departmental 38,756 Various COVID-19Parks and Recreation - 27,666 Various Case ManagementPolice - 5,000 Various COVID-19

TOTALS 435$ 92,918$

_____________________________________________________________________

MONTHLY INVESTMENT REPORT

May 2021

City of Santa Clara

Monthly Investment Report

TABLE OF CONTENTS

Page #

1 Summary of Investment Portfolio 1

2 Summary of Investments 3

3 Investment Maturity Distribution Schedule 4

4 Attachment A: Investment Inventory With Market Value 5

1

CITY OF SANTA CLARA SUMMARY OF INVESTMENT PORTFOLIO

All securities held by the City of Santa Clara as of May 31, 2021 were in compliance with the City's Investment Policy Statement regarding current market strategy and long-term goals and objectives. All securities held are rated “A” or higher by two nationally recognized rating agencies. There is adequate cash flow and maturity of investments to meet the City’s needs for the next six months. The following table provides the breakdown of the total portfolio among the City, the Sports and Open Space Authority (SOSA), and the Housing Authority (HA) as of May 31, 2021.

On May 31, 2021 the cost value and market value of the City's unrestricted pooled investment portfolio were $799,236,123 and $814,568,491 respectively. Investment Strategy and Market Update The City's investment strategy for May 2021 was to invest funds not required to meet current obligations, in securities listed in the prevailing Investment Policy Statement, with maturities not to exceed five years from date of purchase. This strategy ensures safety of the City’s funds, provides liquidity to meet the City’s cash needs, and earns a reasonable portfolio return. On July 14, 2020, City Council approved entering into a contract with PFM Asset Management LLC (“PFM”) for the management of the City’s investment portfolio. The City has leveraged PFM’s extensive investment management experience and dedicated credit and risk management personnel to further diversify the portfolio and enhance returns. PFM began actively managing the City’s securities portfolio on September 1, 2020. As of May 31, 2021, 44.21% of the City’s portfolio consists of U.S. Treasury Notes, 35.90% consists of Federal Agencies, 8.70% consists of Local Agency Investment Fund (LAIF), 6.67% consists of investment grade Corporate Notes, 0.91% consists of investment grade Supranational Obligations, 0.49% consists of investment grade Asset-Back Securities, 2.29% consists of Negotiable Certificates of Deposit, and 0.52% consists of investment grade Municipal Bonds. In addition, City bond proceeds are invested in separate funds and are not included in the calculation of the City’s portfolio yield. The City’s portfolio yield, including LAIF and money market accounts, was 1.41% and the average maturity of the City’s portfolio was 2.11 years.

COST VALUE PERCENTAGE City $795,347,376 99.51%

SOSA 14,074 0.00% HA 3,874,673 0.49%

Unrestricted $799,236,123 100.00% Restricted Bond Proceeds 2,146,235

Total Investments $801,382,358

2

Traditionally the City has compared the portfolio yield to the 24-month moving average yield of the two-year Treasury Note (Benchmark Yield*). During 2021 annual Investment Policy review, the City evaluated alternate portfolio performance benchmarks in order to establish an independent standard to serve as a measure of the performance of the portfolio and to help guide the maturity structure of the portfolio. The City began using the 24-Month moving average yield of the ICE BaML 0-5 US Treasury Index as benchmark, effective March 23, 2021. The City’s securities portfolio compared to the ICE BaML 0-5 US Treasury Index (Benchmark) as of May 31, 2021 was as follows:

Description Average Maturity

(Years) Yield to Maturity

(At Cost) 1 Santa Clara Portfolio 2.31 1.51%

Benchmark 2.26 0.73%

1. Yield to Maturity at Cost: The expected rate of return based on the original cost, annual interest receipts, maturity value, and the time period from purchase date to maturity, stated as a percentage on an annualized basis. The Benchmark yield represents the 24-month moving average yield of the ICE BaML 0-5 US Treasury Index.

CITY OF SANTA CLARA SUMMARY OF INVESTMENTS MAY 31, 2021

PERCOST % OF INVESTMENT

INVESTMENT TYPE VALUE PORTFOLIO POLICY

U.S. Treasury Notes 354,291,517 44.21% No LimitFederal Agency Notes 287,670,664 35.90% 80%Corporate Notes 53,445,006 6.67% 15%Municipal Bonds 4,145,000 0.52% 20%Supranational Obligations 7,319,817 0.91% 10%Asset-Backed Securities 3,949,323 0.49% 20%Negotiable Certificates of Deposit 18,360,000 2.29% 25%Money Market Fund 282,684 0.04% 10% Per FundLocal Agency Investment Fund (LAIF) 69,762,112 8.70% $75 MMutual Fund - Traffic Mitigation Bond Proceeds 2,146,235 0.27% 10% Per FundTOTAL INVESTMENTS 801,372,358$ 100.00%

U.S. Treasury Notes44.21%

Federal Agency Notes 36.55%

Corporate Notes6.67%

Municipal Bonds0.52%

Supranational Obligations0.91%

Asset‐Backed Securities0.49% Negotiable Certificates of

Deposit2.29%

Money Market Fund0.04%

Local Agency Investment Fund (LAIF)8.70%

Mutual Fund ‐ Traffic Mitigation Bond Proceeds

0.27%

3

CITY OF SANTA CLARA

INVESTMENT MATURITY DISTRIBUTIONAS OF MAY 31, 2021

UNRESTRICTED POOLED PORTFOLIO

MATURITY(IN MONTHS) COST VALUE

DEMAND 70,044,796$ (a) 2 8.76% 0 TO 6 75,080,205 11 9.39%

7 TO 12 60,809,365 11 7.61%13 TO 18 81,782,521 13 10.23%19 TO 24 64,194,245 10 8.03%25 TO 30 126,602,631 22 15.84%31 TO 36 67,026,447 14 8.39%37 TO 42 101,415,508 17 12.69%43 TO 48 91,563,860 14 11.46%49 TO 54 45,564,179 8 5.70%55 TO 60 15,152,366 3 1.90%

TOTAL 799,236,123$ 125 100.00%

Average Maturity of Unrestricted Pool: 2.11 Years

(a) $20 million is earmarked for the City's Electric Utility power-trading.

NUMBER OFINVESTMENTS DISTRIBUTION

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

INVESTMENT MATURITY DISTRIBUTION UNRESTRICTED POOLED PORTFOLIO

AS OF MAY 31, 2021

Maturity (Months)

Dis

tribu

tion

Perc

enta

ge

4

City of Santa Clara Monthly Report5/31/2021

Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LUNITED STATES TREASURY 6/30/2014 2.125% 6/30/2021 912828WR7 5,000,000.00 AA+ 2/15/2019 4,957,617.19 2.49% 5,008,400.00 50,782.81UNITED STATES TREASURY 7/31/2014 2.250% 7/31/2021 912828WY2 10,000,000.00 AA+ 10/23/2019 10,108,984.38 1.62% 10,036,900.00 -72,084.38UNITED STATES TREASURY 8/31/2019 1.500% 8/31/2021 912828YC8 9,860,000.00 AA+ 10/20/2020 9,976,702.34 0.13% 9,895,989.00 -80,713.34UNITED STATES TREASURY 10/15/2018 2.875% 10/15/2021 9128285F3 5,000,000.00 AA+ 1/16/2019 5,043,554.69 2.54% 5,052,750.00 9,195.31UNITED STATES TREASURY 11/30/2016 1.750% 11/30/2021 912828U65 10,000,000.00 AA+ 5/21/2018 9,648,046.88 2.80% 10,084,400.00 436,353.12UNITED STATES TREASURY 1/3/2017 2.000% 12/31/2021 912828U81 5,000,000.00 AA+ 11/8/2017 5,016,796.88 1.92% 5,056,250.00 39,453.12UNITED STATES TREASURY 1/31/2017 1.875% 1/31/2022 912828V72 5,000,000.00 AA+ 2/23/2018 4,878,125.00 2.53% 5,060,150.00 182,025.00UNITED STATES TREASURY 3/2/2015 1.750% 2/28/2022 912828J43 2,800,000.00 AA+ 3/3/2017 2,735,687.50 2.24% 2,835,336.00 99,648.50UNITED STATES TREASURY 3/31/2017 1.875% 3/31/2022 912828W89 5,000,000.00 AA+ 1/24/2018 4,902,343.75 2.37% 5,075,000.00 172,656.25UNITED STATES TREASURY 5/1/2017 1.875% 4/30/2022 912828X47 5,000,000.00 AA+ 1/19/2018 4,901,757.81 2.36% 5,082,250.00 180,492.19UNITED STATES TREASURY 6/1/2015 1.875% 5/31/2022 912828XD7 5,000,000.00 AA+ 6/8/2017 5,024,218.75 1.77% 5,089,250.00 65,031.25UNITED STATES TREASURY 6/30/2015 2.125% 6/30/2022 912828XG0 25,000,000.00 AA+ 12/21/2018 25,448,046.88 1.60% 25,548,750.00 100,703.12UNITED STATES TREASURY 7/31/2017 1.875% 7/31/2022 9128282P4 5,000,000.00 AA+ 3/26/2018 4,853,515.63 2.59% 5,104,100.00 250,584.37UNITED STATES TREASURY 8/31/2015 1.875% 8/31/2022 912828L24 5,000,000.00 AA+ 9/28/2017 4,991,015.00 1.91% 5,110,350.00 119,335.00UNITED STATES TREASURY 10/2/2017 1.875% 9/30/2022 9128282W9 5,000,000.00 AA+ 4/19/2018 4,820,117.19 2.74% 5,117,600.00 297,482.81UNITED STATES TREASURY 9/30/2015 1.750% 9/30/2022 912828L57 5,000,000.00 AA+ 10/5/2017 4,950,781.25 1.96% 5,109,400.00 158,618.75UNITED STATES TREASURY 11/2/2015 1.875% 10/31/2022 912828M49 5,000,000.00 AA+ 10/25/2017 4,953,515.63 2.07% 5,124,400.00 170,884.37UNITED STATES TREASURY 11/30/2015 2.000% 11/30/2022 912828M80 5,000,000.00 AA+ 12/15/2017 4,960,546.88 2.17% 5,141,000.00 180,453.12UNITED STATES TREASURY 12/31/2015 2.125% 12/31/2022 912828N30 1,300,000.00 AA+ 5/14/2018 1,260,187.50 2.84% 1,340,976.00 80,788.50UNITED STATES TREASURY 1/15/2020 1.500% 1/15/2023 912828Z29 2,850,000.00 AA+ 4/20/2020 2,947,968.75 0.24% 2,913,469.50 -34,499.25UNITED STATES TREASURY 2/1/2016 1.750% 1/31/2023 912828P38 5,000,000.00 AA+ 2/13/2018 4,810,937.50 2.57% 5,134,750.00 323,812.50UNITED STATES TREASURY 2/29/2016 1.500% 2/28/2023 912828P79 10,000,000.00 AA+ 2/27/2018 9,450,000.00 2.68% 10,237,100.00 787,100.00UNITED STATES TREASURY 3/31/2016 1.500% 3/31/2023 912828Q29 10,000,000.00 AA+ 4/10/2018 9,479,290.00 2.62% 10,248,800.00 769,510.00UNITED STATES TREASURY 5/2/2016 1.625% 4/30/2023 912828R28 10,000,000.00 AA+ 5/8/2018 9,446,875.00 2.82% 10,282,000.00 835,125.00UNITED STATES TREASURY 5/31/2016 1.625% 5/31/2023 912828R69 10,000,000.00 AA+ 7/16/2018 9,484,375.00 2.76% 10,293,400.00 809,025.00UNITED STATES TREASURY 6/30/2016 1.375% 6/30/2023 912828S35 20,000,000.00 AA+ 1/17/2019 20,053,710.95 1.31% 20,503,200.00 449,489.05UNITED STATES TREASURY 7/31/2018 2.750% 7/31/2023 912828Y61 10,000,000.00 AA+ 9/18/2018 9,918,710.94 2.93% 10,557,400.00 638,689.06UNITED STATES TREASURY 8/31/2016 1.375% 8/31/2023 9128282D1 5,000,000.00 AA+ 9/12/2018 4,657,031.25 2.87% 5,133,800.00 476,768.75UNITED STATES TREASURY 9/30/2016 1.375% 9/30/2023 912828T26 7,500,000.00 AA+ 11/13/2018 6,947,167.97 3.01% 7,706,250.00 759,082.03UNITED STATES TREASURY 10/15/2020 0.125% 10/15/2023 91282CAP6 5,260,000.00 AA+ 3/26/2021 5,248,288.28 0.21% 5,252,004.80 3,716.52UNITED STATES TREASURY 10/31/2016 1.625% 10/31/2023 912828T91 5,000,000.00 AA+ 1/25/2019 4,787,695.31 2.58% 5,171,300.00 383,604.69UNITED STATES TREASURY 11/30/2016 2.125% 11/30/2023 912828U57 10,000,000.00 AA+ 2/28/2019 10,251,562.50 1.57% 10,476,600.00 225,037.50UNITED STATES TREASURY 1/3/2017 2.250% 12/31/2023 912828V23 5,000,000.00 AA+ 3/13/2019 4,957,812.50 2.44% 5,259,950.00 302,137.50UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 5,000,000.00 AA+ 3/26/2021 4,981,445.31 0.26% 4,985,750.00 4,304.69UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 2,510,000.00 AA+ 3/31/2021 2,497,744.14 0.30% 2,502,846.50 5,102.36UNITED STATES TREASURY 1/31/2019 2.500% 1/31/2024 9128285Z9 5,000,000.00 AA+ 4/14/2020 5,407,421.88 0.34% 5,300,400.00 -107,021.88UNITED STATES TREASURY 1/31/2017 2.250% 1/31/2024 912828V80 5,000,000.00 AA+ 2/13/2019 4,936,328.13 2.52% 5,266,800.00 330,471.87UNITED STATES TREASURY 2/28/2017 2.125% 2/29/2024 912828W48 5,000,000.00 AA+ 3/19/2019 4,926,950.00 2.44% 5,255,450.00 328,500.00UNITED STATES TREASURY 2/28/2017 2.125% 2/29/2024 912828W48 2,575,000.00 AA+ 4/15/2021 2,708,376.95 0.31% 2,706,556.75 -1,820.20UNITED STATES TREASURY 3/31/2017 2.125% 3/31/2024 912828W71 5,000,000.00 AA+ 4/29/2019 4,955,078.13 2.32% 5,261,350.00 306,271.87UNITED STATES TREASURY 5/1/2017 2.000% 4/30/2024 912828X70 5,000,000.00 AA+ 5/16/2019 4,952,734.38 2.20% 5,247,650.00 294,915.62UNITED STATES TREASURY 5/15/2014 2.500% 5/15/2024 912828WJ5 6,050,000.00 AA+ 8/16/2019 6,332,174.65 1.48% 6,443,492.00 111,317.35UNITED STATES TREASURY 6/30/2019 1.750% 6/30/2024 9128286Z8 7,250,000.00 AA+ 12/12/2019 7,253,398.44 1.74% 7,566,897.50 313,499.06UNITED STATES TREASURY 6/30/2017 2.000% 6/30/2024 912828XX3 5,000,000.00 AA+ 8/29/2019 5,136,328.13 1.41% 5,255,850.00 119,521.87UNITED STATES TREASURY 7/31/2017 2.125% 7/31/2024 9128282N9 5,000,000.00 AA+ 9/10/2019 5,133,315.75 1.56% 5,278,900.00 145,584.25UNITED STATES TREASURY 8/31/2017 1.875% 8/31/2024 9128282U3 5,000,000.00 AA+ 3/10/2020 5,275,780.00 0.62% 5,242,400.00 -33,380.00UNITED STATES TREASURY 8/31/2019 1.250% 8/31/2024 912828YE4 5,050,000.00 AA+ 1/5/2021 5,240,164.06 0.21% 5,193,420.00 -46,744.06

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Attachment A


Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LUNITED STATES TREASURY 10/2/2017 2.125% 9/30/2024 9128282Y5 5,000,000.00 AA+ 10/25/2019 5,116,406.25 1.63% 5,287,100.00 170,693.75UNITED STATES TREASURY 10/31/2017 2.250% 10/31/2024 9128283D0 10,000,000.00 AA+ 11/18/2019 10,290,625.00 1.64% 10,623,100.00 332,475.00UNITED STATES TREASURY 11/30/2017 2.125% 11/30/2024 9128283J7 5,000,000.00 AA+ 1/6/2020 5,118,945.31 1.62% 5,293,750.00 174,804.69UNITED STATES TREASURY 1/2/2018 2.250% 12/31/2024 9128283P3 10,000,000.00 AA+ 1/7/2020 10,300,781.25 1.62% 10,639,800.00 339,018.75UNITED STATES TREASURY 1/31/2020 1.375% 1/31/2025 912828Z52 5,000,000.00 AA+ 4/22/2020 5,238,671.88 0.37% 5,163,300.00 -75,371.88UNITED STATES TREASURY 1/31/2020 1.375% 1/31/2025 912828Z52 1,950,000.00 AA+ 5/7/2021 2,013,146.48 0.50% 2,013,687.00 540.52UNITED STATES TREASURY 2/28/2018 2.750% 2/28/2025 9128283Z1 6,200,000.00 AA+ 3/6/2020 6,850,757.82 0.61% 6,719,994.00 -130,763.82UNITED STATES TREASURY 12/31/2020 0.375% 12/31/2025 91282CBC4 3,820,000.00 AA+ 5/3/2021 3,751,956.25 0.76% 3,762,700.00 10,743.75U.S. Treasury Bond / Note Subtotal 354,975,000.00 354,291,517.27 366,054,469.05 11,762,951.78

FANNIE MAE 10/7/2016 1.375% 10/7/2021 3135G0Q89 5,000,000.00 AA+ 10/7/2016 4,982,000.00 1.45% 5,023,500.00 41,500.00FANNIE MAE 1/9/2017 2.000% 1/5/2022 3135G0S38 5,000,000.00 AA+ 10/10/2018 4,845,050.00 3.01% 5,057,800.00 212,750.00FANNIE MAE 10/6/2017 2.000% 10/5/2022 3135G0T78 5,000,000.00 AA+ 1/26/2018 4,890,750.00 2.50% 5,125,650.00 234,900.00FANNIE MAE 11/25/2020 0.250% 11/27/2023 3135G06H1 4,950,000.00 AA+ 11/25/2020 4,944,357.00 0.29% 4,955,445.00 11,088.00FANNIE MAE 11/25/2020 0.250% 11/27/2023 3135G06H1 5,225,000.00 AA+ 1/22/2021 5,230,799.75 0.21% 5,230,747.50 -52.25FANNIE MAE 7/8/2019 1.750% 7/2/2024 3135G0V75 15,000,000.00 AA+ 12/18/2019 15,566,089.75 0.90% 15,645,000.00 78,910.25FANNIE MAE 1/10/2020 1.625% 1/7/2025 3135G0X24 7,500,000.00 AA+ 1/22/2020 7,499,025.00 1.63% 7,813,350.00 314,325.00FANNIE MAE 4/24/2020 0.625% 4/22/2025 3135G03U5 10,000,000.00 AA+ 5/7/2020 10,050,600.00 0.52% 10,032,800.00 -17,800.00FANNIE MAE 6/19/2020 0.500% 6/17/2025 3135G04Z3 5,000,000.00 AA+ 7/17/2020 5,008,950.00 0.46% 4,984,150.00 -24,800.00FANNIE MAE 11/12/2020 0.500% 11/7/2025 3135G06G3 1,860,000.00 AA+ 12/29/2020 1,864,929.00 0.44% 1,843,669.20 -21,259.80FNMA Medium Term Note Subtotal 64,535,000.00 64,882,550.50 65,712,111.70 829,561.20

FEDERAL FARM CREDIT BANKS 10/14/2016 1.400% 4/14/2022 3133EGYS8 5,000,000.00 AA+ 2/4/2020 4,994,485.00 1.45% 5,056,450.00 61,965.00FEDERAL FARM CREDIT BANKS 7/19/2019 1.850% 7/19/2022 3133EKVE3 5,000,000.00 AA+ 7/17/2019 4,994,300.00 1.89% 5,098,600.00 104,300.00FEDERAL FARM CREDIT BANKS 8/5/2019 1.850% 8/5/2022 3133EKYJ9 5,000,000.00 AA+ 8/13/2019 5,029,800.00 1.64% 5,101,600.00 71,800.00FEDERAL FARM CREDIT BANKS 11/1/2017 2.080% 11/1/2022 3133EHM91 1,800,000.00 AA+ 10/7/2019 1,834,398.00 1.44% 1,850,040.00 15,642.00FEDERAL FARM CREDIT BANKS 3/16/2018 2.710% 12/16/2022 3133EJGU7 5,000,000.00 AA+ 3/28/2018 5,015,935.00 2.64% 5,199,150.00 183,215.00FEDERAL FARM CREDIT BANKS 6/19/2018 2.890% 6/19/2023 3133EJSD2 5,000,000.00 AA+ 11/28/2018 4,980,250.00 2.98% 5,274,900.00 294,650.00FEDERAL FARM CREDIT BANKS 1/17/2020 1.600% 7/17/2023 3133ELHZ0 5,000,000.00 AA+ 1/16/2020 4,998,200.00 1.61% 5,147,100.00 148,900.00FEDERAL FARM CREDIT BANKS 8/14/2018 2.900% 8/14/2023 3133EJWV7 5,000,000.00 AA+ 9/17/2018 4,977,050.00 3.00% 5,293,650.00 316,600.00FEDERAL FARM CREDIT BANKS 10/2/2018 3.050% 10/2/2023 3133EJD48 7,575,000.00 AA+ 11/27/2018 7,583,620.35 3.02% 8,068,965.75 485,345.40FEDERAL FARM CREDIT BANKS 11/1/2017 2.200% 11/1/2023 3133EHN25 2,965,000.00 AA+ 6/26/2019 3,006,094.90 1.87% 3,103,228.30 97,133.40FEDERAL FARM CREDIT BANKS 2/27/2019 2.610% 2/27/2024 3133EKBW5 5,000,000.00 AA+ 3/20/2019 5,033,150.00 2.47% 5,311,550.00 278,400.00FEDERAL FARM CREDIT BANKS 4/22/2019 2.450% 7/22/2024 3133EKHV1 5,000,000.00 AA+ 9/4/2019 5,250,650.00 1.38% 5,320,950.00 70,300.00FEDERAL FARM CREDIT BANKS 11/1/2019 1.650% 11/1/2024 3133EK4Y9 5,000,000.00 AA+ 11/8/2019 4,962,850.00 1.81% 5,212,950.00 250,100.00FEDERAL FARM CREDIT BANKS 1/23/2020 1.650% 1/23/2025 3133ELJM7 7,320,000.00 AA+ 5/18/2020 7,689,367.20 0.56% 7,613,019.60 -76,347.60FEDERAL FARM CREDIT BANKS 5/14/2020 0.500% 5/14/2025 3133ELZM9 10,000,000.00 AA+ 5/15/2020 9,982,800.00 0.53% 9,967,100.00 -15,700.00FEDERAL FARM CREDIT BANKS 6/9/2020 0.500% 6/9/2025 3133ELH23 10,000,000.00 AA+ 6/12/2020 9,997,540.00 0.50% 9,960,200.00 -37,340.00FFCB Medium Term Note Subtotal 89,660,000.00 90,330,490.45 92,579,453.65 2,248,963.20

FEDERAL FARM CREDIT BANKS 7/2/2020 0.500% 7/2/2025 3133ELR71 10,000,000.00 AA+ 7/14/2020 10,017,640.00 0.46% 9,957,800.00 -59,840.00FFCB Coupon Note Subtotal 10,000,000.00 10,017,640.00 9,957,800.00 -59,840.00

FEDERAL HOME LOAN BANKS 5/5/2014 2.250% 6/11/2021 3130A1W95 10,000,000.00 AA+ 11/18/2016 10,184,300.00 1.83% 10,006,100.00 -178,200.00FEDERAL HOME LOAN BANKS 7/14/2016 1.125% 7/14/2021 3130A8QS5 5,000,000.00 AA+ 11/28/2016 4,847,750.00 1.81% 5,006,300.00 158,550.00FEDERAL HOME LOAN BANKS 3/5/2012 2.375% 9/10/2021 313378JP7 5,000,000.00 AA+ 10/31/2016 5,221,200.00 1.43% 5,031,600.00 -189,600.00

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Attachment A


Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LFEDERAL HOME LOAN BANKS 11/14/2018 3.000% 12/10/2021 3130AFFN2 5,000,000.00 AA+ 2/8/2019 5,068,100.00 2.50% 5,077,200.00 9,100.00FEDERAL HOME LOAN BANKS 2/17/2012 2.250% 3/11/2022 313378CR0 5,000,000.00 AA+ 3/13/2020 5,150,900.00 0.72% 5,085,250.00 -65,650.00FEDERAL HOME LOAN BANKS 8/15/2013 3.125% 9/9/2022 313383WD9 5,000,000.00 AA+ 12/12/2018 5,039,800.00 2.90% 5,191,850.00 152,050.00FEDERAL HOME LOAN BANKS 10/17/2014 2.375% 9/8/2023 3130A3DL5 5,000,000.00 AA+ 9/5/2019 5,164,135.00 1.53% 5,243,550.00 79,415.00FEDERAL HOME LOAN BANKS 12/9/2013 3.375% 12/8/2023 3130A0F70 5,000,000.00 AA+ 1/8/2019 5,147,870.00 2.73% 5,393,150.00 245,280.00FEDERAL HOME LOAN BANKS 1/16/2015 2.250% 12/8/2023 3130A3VC5 5,000,000.00 AA+ 3/12/2020 5,282,425.00 0.72% 5,247,100.00 -35,325.00FEDERAL HOME LOAN BANKS 3/29/2017 2.375% 3/8/2024 3130AB3H7 5,000,000.00 AA+ 4/11/2019 4,998,795.00 2.38% 5,297,450.00 298,655.00FEDERAL HOME LOAN BANKS 5/8/2014 2.875% 6/14/2024 3130A1XJ2 5,000,000.00 AA+ 11/20/2019 5,270,205.00 1.64% 5,382,150.00 111,945.00FEDERAL HOME LOAN BANKS 8/15/2014 2.875% 9/13/2024 3130A2UW4 5,000,000.00 AA+ 10/16/2019 5,285,750.00 1.66% 5,403,300.00 117,550.00FEDERAL HOME LOAN BANKS 11/6/2014 2.750% 12/13/2024 3130A3GE8 5,000,000.00 AA+ 3/12/2020 5,461,300.00 0.77% 5,406,300.00 -55,000.00FHLB Medium Term Note Subtotal 70,000,000.00 72,122,530.00 72,771,300.00 648,770.00

FEDERAL HOME LOAN BANKS 6/28/2019 2.220% 6/28/2024 3130AGMK8 5,000,000.00 AA+ 6/13/2019 5,000,000.00 2.22% 5,008,250.00 8,250.00FEDERAL HOME LOAN BANKS 8/26/2019 1.650% 8/26/2024 3130AGXF7 5,000,000.00 AA+ 8/20/2019 5,000,000.00 1.65% 5,016,700.00 16,700.00FEDERAL HOME LOAN BANKS 11/4/2019 1.875% 11/4/2024 3130AHGL1 3,840,000.00 AA+ 10/31/2019 3,840,000.00 1.87% 3,867,532.80 27,532.80FHLB Coupon Note Subtotal 13,840,000.00 13,840,000.00 13,892,482.80 52,482.80

FREDDIE MAC 7/26/2016 1.875% 7/26/2021 3134G9M20 5,000,000.00 AA+ 2/25/2020 5,041,950.00 1.28% 5,013,550.00 -28,400.00FREDDIE MAC 5/7/2020 0.375% 5/5/2023 3137EAER6 5,000,000.00 AA+ 5/8/2020 5,014,545.00 0.28% 5,020,300.00 5,755.00FREDDIE MAC 9/4/2020 0.250% 9/8/2023 3137EAEW5 1,640,000.00 AA+ 9/4/2020 1,640,761.21 0.24% 1,641,279.20 517.99FREDDIE MAC 9/4/2020 0.250% 9/8/2023 3137EAEW5 4,295,000.00 AA+ 9/4/2020 4,293,582.65 0.26% 4,298,350.10 4,767.45FREDDIE MAC 10/16/2020 0.125% 10/16/2023 3137EAEY1 5,920,000.00 AA+ 10/16/2020 5,897,918.40 0.25% 5,909,817.60 11,899.20FREDDIE MAC 2/14/2020 1.500% 2/12/2025 3137EAEP0 5,000,000.00 AA+ 5/20/2020 5,226,960.00 0.53% 5,184,150.00 -42,810.00FREDDIE MAC 9/25/2020 0.375% 9/23/2025 3137EAEX3 9,390,000.00 AA+ 9/25/2020 9,361,736.10 0.44% 9,281,827.20 -79,908.90FHLMC Medium Term Note Subtotal 36,245,000.00 36,477,453.36 36,349,274.10 -128,179.26

INTL BANK OF RECONSTRUCTION AND DEV 4/20/2021 0.125% 4/20/2023 459058JV6 7,335,000.00 AAA 4/20/2021 7,319,816.55 0.23% 7,324,877.70 5,061.15Supranational Subtotal 7,335,000.00 7,319,816.55 7,324,877.70 5,061.15

CALIFORNIA EARTHQUAKE AUTHORITY 11/24/2020 1.477% 7/1/2023 13017HAK2 1,430,000.00 NR 11/24/2020 1,430,000.00 1.48% 1,459,643.90 29,643.90LOS ANGELES COMMUNITY COLLEGE DISTRICT C 11/10/2020 0.773% 8/1/2025 54438CYK2 2,715,000.00 AA+ 11/10/2020 2,715,000.00 0.77% 2,724,122.40 9,122.40Municipals Subtotal 4,145,000.00 4,145,000.00 4,183,766.30 38,766.30

AMAZON.COM INC 5/12/2021 0.450% 5/12/2024 023135BW5 4,245,000.00 AA- 5/12/2021 4,238,802.30 0.50% 4,255,018.20 16,215.90APPLE INC 11/13/2017 2.750% 1/13/2025 037833DF4 5,000,000.00 AA+ 3/9/2021 5,340,100.00 0.94% 5,367,250.00 27,150.00APPLE INC 11/13/2017 2.750% 1/13/2025 037833DF4 5,000,000.00 AA+ 3/29/2021 5,355,200.00 0.84% 5,367,250.00 12,050.00BANK OF AMERICA 7/23/2013 4.100% 7/24/2023 06053FAA7 4,070,000.00 A- 9/15/2020 4,482,494.50 0.52% 4,396,373.30 -86,121.20BANK OF NY MELLON CORP 1/28/2021 0.750% 1/28/2026 06406RAQ0 9,000,000.00 A 2/10/2021 9,025,920.00 0.69% 8,940,330.00 -85,590.00JOHNSON & JOHNSON 8/25/2020 0.550% 9/1/2025 478160CN2 5,000,000.00 AAA 9/3/2020 5,023,550.00 0.45% 4,974,700.00 -48,850.00JPMORGAN CHASE & CO 9/16/2020 0.653% 9/16/2024 46647PBS4 2,675,000.00 A- 9/16/2020 2,675,000.00 0.65% 2,683,346.00 8,346.00MASTERCARD INC 12/3/2019 2.000% 3/3/2025 57636QAN4 5,000,000.00 A+ 3/9/2021 5,213,450.00 0.91% 5,243,400.00 29,950.00MICROSOFT CORP 2/12/2015 2.700% 2/12/2025 594918BB9 5,000,000.00 AAA 3/9/2021 5,341,700.00 0.92% 5,373,600.00 31,900.00TOYOTA MOTOR CREDIT CORP 1/11/2021 0.450% 1/11/2024 89236THU2 6,100,000.00 A+ 1/11/2021 6,099,634.00 0.45% 6,110,553.00 10,919.00UNILEVER CAPITAL CORP 9/14/2020 0.375% 9/14/2023 904764BJ5 660,000.00 A+ 9/14/2020 659,155.20 0.42% 661,768.80 2,613.60

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Attachment A


Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LCorporate Note Subtotal 51,750,000.00 53,455,006.00 53,373,589.30 -81,416.70

CARMAX AUTO OWNER TRUST 4/21/2021 0.520% 2/17/2026 14314QAC8 2,375,000.00 AAA 4/21/2021 2,374,488.19 0.52% 2,380,991.65 6,503.46HYUNDAI AUTO RECEIVABLES TRUST 4/28/2021 0.380% 9/15/2025 44933LAC7 1,575,000.00 AAA 4/28/2021 1,574,834.31 0.38% 1,577,299.34 2,465.03Asset-Backed Security Subtotal 3,950,000.00 3,949,322.50 3,958,290.99 8,968.49

BARCLAYS BANK PLC 2/12/2021 0.290% 2/4/2022 06742TWL6 11,000,000.00 A-1 2/12/2021 11,000,000.00 0.29% 11,003,630.00 3,630.00HSBC BANK USA NA 2/26/2021 0.250% 2/25/2022 40435RKU4 7,360,000.00 A-1 2/26/2021 7,360,000.00 0.25% 7,362,649.60 2,649.60Certificate of Deposit Subtotal 18,360,000.00 18,360,000.00 18,366,279.60 6,279.60

WELLS FARGO PUBLIC INSTITUTION 6/1/2021 992995944 282,683.93 9/1/2020 282,683.93 0.07% 282,683.93 - LOCAL AGENCY INVESTMENT FUND 6/1/2021 69,762,111.68 9/30/1997 69,762,111.68 0.62% 69,762,111.68 - DREYFUS TREASURY 6/1/2021 2,146,235.49 10/31/1997 2,146,235.49 0.03% 2,146,235.49 - Cash Equivalent Subtotal 72,191,031.10 72,191,031.10 72,191,031.10 -

Grand Total Count 126 796,986,031.10 801,382,357.73 816,714,726.29 15,332,368.56

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Attachment A

city of santa clara

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