Contract Services have increased by approximately $1.0 million (or 40%). The increase is due to a new Recology franchise agreement in 2021 and increased in‐person Sports Center programs due to the reopening of the Sports Center, which was closed during shelter‐in‐ place. Also, Sports Center facility costs increased due to updates, including new windscreen panels for the tennis courts and new umbrellas for the outdoor tables.
Cost Allocation increased by approximately $0.2 million (or 11%) due primarily to higher Innovation & Technology and Human Resources costs.
Capital Outlays decreased by approximately $0.4 million (or 5%) due to lower Capital Improvement Program spending. CIP spending varies from year to year, depending on the approved projects and the progress of the projects.
Special Projects decreased by approximately $0.5 million (or 17%) due to decreases in annual asphalt project spending.
Debt Service decreased by $27.2 million (or 99%). Last year, one‐time expenditure increases were due to refinancing the Cityʹs debt.
Transfers Out increased by $9.3 million (or 373%) due to increased transfers from the Capital Reserve to fund Capital Improvement Program projects.
Budget Adjustment Requests
As of the third quarter, departments are requesting budget adjustments to ensure they end the year within budget appropriations. The recommended adjustments are summarized in the table below:
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11 On‐Call Special Projects
Staff requests to increase the on‐call special projects budget. The request is funded by offsetting and administrative revenue. The funds will be used to obtain approval for the following projects: 20860 McClellan, 20865 McClellan, 22436 Regnart, 11611‐11631 Upland, Target at Mainstreet, 21750 Rainbow, 10046 Bianchi, and 20638 Cleo.
Canyon Crossing ‐ Plan Review Consultant
The City expects to receive a building permit application for a new mixed‐use development called Canyon Crossing, located at 10625 S. Foothill Blvd. The funds will be used to have a plan check consulting firm review the building permit application. The request is funded by offsetting and administrative revenue. The scope of work is a mixed‐ used project of eighteen (18) units consisting of five (5) single‐family homes, eight (8) townhomes, and five (5) apartments over a 4,536 sq. ft. commercial building.
Transfer for City Hall Improvements
Staff requests to transfer $25,000 from the City Hall Alternatives project in Development Services (100‐82‐804 750‐072) to the City Hall Annex project (420‐99‐248 700‐702). The transfer is requested because the ʺAlternative to City Hallʺ project has been supplanted by the ʺ10455 Torre Avenue Improvementsʺ project.
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12 Ballfield Fencing
The funds will be used to hire a consultant to initiate and study the fencing requirements at the Memorial Park softball field.
Veteranʹs Memorial
The funds will be used to have a contractor replace and install any future broken wall tiles at the Veteranʹs Memorial. The Veteranʹs Memorial was built with outside funding and contractors who donated labor and materials. During the last year, many tiles became detached from the wall due to improper installation. During the presentation of the project, the City committed to the maintenance of the project in perpetuity. The funding will be used to furnish and install tiles that may break in the future.
Emergency Elevator Repair
City Hall elevators failed a load test. This load test is State‐mandated, and various repairs are required for the elevators to pass this test. Funding these repairs will allow the testing to resume and eventually pass the Stateʹs requirements for use. If the elevators are not repaired, the City could face fines for operating a non‐ADA‐compliant City Hall.
Lobby Monitor Electrical
As City Hall reopened, Information Technology requested that two monitors be mounted and powered to provide instructions to visitors. Currently, those monitors are powered using extension cords. By funding this proposal, the monitors will be fed by a unique circuit for an aesthetically pleasing appearance.
Janitorial & Security Services
The Cityʹs janitorial services contract was re‐negotiated in December 2021, and rates increased by 12%. This adjustment will cover the increase from January 2022 to June 2022 for programs that do not have sufficient funds to cover the increase this fiscal year.
Wilson Park Tree Maintenance
Staff requests funds to remove several dead trees. 14 redwood and pine trees were removed from Wilson Park due to disease and decline from drought conditions. Several of these trees were near neighboring houses. Most of the trees were over 40 years old and were just showing signs of a bark beetle infestation. Other trees suffered from drought conditions and did not have dedicated irrigation.
Sales Tax Estimate Increase
Strong performance in the business‐to‐business industry and a rebound in Restaurants and Hotels, General Consumer Goods, and Fuel and Service Stations have continued increasing sales tax revenues. As of the third quarter, the Cityʹs sales tax was approximately 119% of the annual budget. Staff recommends increasing the Cityʹs sales tax estimate of $9,056,437 to better align with year‐end projections.
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13 Transfer for Regnart Road Improvements
Staff requests to transfer $105,235 in the Streets Division for Street Paving Maintenance (270‐85‐821 900‐990) to the Regnart Road Improvements project (420‐99‐068 900‐905) to address extensive street and paving repairs associated with the improvement project.
BBF Golf Course Netting Replacement
Staff requests funding for new netting at holes 8 and 9, and replacement netting between the parking lot and hole 7. The City originally looked at performing this work under two separate contracts. By combining the work under one contract, the City will realize a savings of $12,000 on the total contract price.
Staffing
As of March 31, 2022, the Amended Budget has a total of 211 FTEs (including City Council). There are no proposed changes to staffing as part of the Third Quarter Report.
Fund Balance
The Cityʹs General Fund ended FY 2020‐21 with $96.9 million in total fund balance. As of the First Quarter Report, the City updated its FY 2021‐22 year‐end projections to $111.9 million in total fund balance, increasing $28.8 million due to higher revenues and lower expenditures in FY 2020‐21. As of the Mid‐Year Financial Report, the City updated its FY 2021‐22 year‐end projections to $101.8 million in total fund balance due to a one‐time transfer of $10 million to the Capital Reserve Fund. The City also transferred funds from unassigned to other classifications within the General Fund: $2 million to the Section 115 Pension Trust (restricted), $5 million to the Economic Uncertainty Reserve (committed), and $10 million to a new Capital Projects Reserve (committed).
The year‐end total fund balance as of Third Quarter FY 2021‐22 is projected to be $110.6 million, an increase of $8.8 million (or 9%). The increase is mainly due to higher sales tax revenue estimates.
General Fund Classification of Fund Balance
Per the Cityʹs one Fund Balance Policy, unassigned fund balance over $500,000 is to be used in the following order to replenish committed fund balances with any remaining balances to be transferred to the Capital Reserve:
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14 1. Economic Uncertainty
2. PERS
3. Sustainability Reserve
4. Capital Projects
5. Unassigned
City Manager Discretionary Fund
As part of the FY 2021‐22 Adopted Budget, City Council recommended and approved the reduction of the City Manager Discretionary Fund to an annual amount of $75,000. The quarterly budget reports will detail the City Managerʹs use of the discretionary fund and may include recommendations to replenish depending on the extent and nature of use.
As of March 31, 2022, $2,400 was used to assist with funding a Tripepi Smith contract. The City Manager Discretionary Fund was not used in the third quarter.
The City anticipates using the City Manager Discretionary Fund for the purchase of feminine sanitary product dispensers. The project is not yet complete, but staff will provide an update once the City Manager Discretionary Fund is used.
Conclusion
The Third Quarter Financial Report shows the City is well‐positioned to move forward.
City staff recommends adjustments of $529,935 in new appropriations funded by $9,448,487 in new revenues. If approved, the Cityʹs fund balance across all funds will increase by $8,918,552.
Sustainability Impact
No sustainability impact.
Prepared by: Thomas Leung, Acting Finance Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Jim Throop, City Manager
Attachments:
A – Draft Resolution
B – FY 2021‐22 Third Quarter Financial Report
C – FY 2021‐22 Third Quarter Budget Adjustment Journal
D – Amended Budget Detail as of March 31, 2022
E – Budget Transfers Detail as of March 31, 2022
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ATTACHMENT A
RESOLUTION NO. 22‐XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2021‐22 BY
APPROPRIATING,TRANSFERRING,ANDUNAPPROPRIATINGMONIES
FOR SPECIFIED FUNDS
WHEREAS, the orderly administration of municipal government depends on a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies; and
WHEREAS, accomplishing City Council directives, projects and programs, and performing staff duties and responsibilities likewise depends on the monies available for that purpose; and
WHEREAS, the City Manager has determined that the balances from the funds specified in this resolution are adequate to cover the proposed amended appropriations, and therefore recommends the fund reallocations described herein.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve the recommended fund reallocations and ratifies the attached amended appropriations as set forth in Exhibit A.
PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 19th day of May 2022, by the following vote:
Vote Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
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ATTACHMENT A
SIGNED:
________
Darcy Paul, Mayor
City of Cupertino
________________________
Date
ATTEST:
________________________
Kirsten Squarcia, City Clerk
________________________
Date
Appropriation
Amendment by Fund
Appropriation
Amendment
Revenue
Amendment
Fund Balance
(Use of)
General Fund $327,600 $9,318,252 $8,990,652
Special Revenue Funds $‐ $‐ $‐
Capital Projects Funds $130,235 $130,235 $‐
Enterprise Funds $72,100 $‐ $(72,100)
Internal Service Funds $‐ $‐ $‐
Total Appropriation
Amendment All Funds $529,935 $9,448,487 $8,918,552
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This Financial Report is interactive. Click on a chart to learn more.
Background
On June 15, 2021, the City Council adopted the Fiscal Year (FY) 2021-22 Budget, a $148,845,235 spending plan funded by $132,850,958 of revenues and $15,994,277 of fund balance. On November 16, 2021, Council received the City Manager's First Quarter Financial Report, which revised the budget to account for encumbrances of $16,868,361 million and carryover appropriations of $53,863,626 million from FY 2021-22.
The carryover appropriations included $18.5 million in capital projects, $19 million for Vallco Town Center (renamed The Rise), and $5.9 million for Transportation projects. Encumbrances represent funds for obligations related to unfilled purchase orders or unfilled contracts rolled over from one year to the next until those obligations are fulfilled or terminated. Carryover appropriations are unencumbered funds for unfinished projects carried over to the following fiscal year to complete those projects.
In the first three quarters of FY 2021-22, Council approved $19.0 million in additional appropriations, mostly related to the American Rescue Plan Act of 2021 ($4.9 million), I-280 Trail ($1.9 million), First Quarter Adjustments ($1.6 million), and Mid-Year Adjustments ($10.0 million).
With carryovers, encumbrances, and Council-approved adjustments, the amended budget is $238,620,305.
Amended Budget
2021-22 Adopted Budget2021-22 Amended Budget Q12021-22 Amended Budget Q22021-22 Amended Budget Q3 Fiscal Year
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100.0M
150.0M
200.0M
Dollars
Public Works
Capital Projects
Non Departmental
Community Development
Law Enforcement
Parks and Recreation
Administration
Administrative Services
Innovation & Technology
Council and Commissions
CITY OF CUPERTINO
FY 2021-22 Third Quarter Report
The following is the Third Quarter Financial Report, submitted by the Administrative Services Department for the period January 1, 2022 to March 31, 2022 of Fiscal Year (FY) 2021-22. It has been prepared to inform the City Council, City leadership, and the public of the City’s fiscal status. 287
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Flow of Funds Chart (in Millions)
General Fund Revenues, Expenditures, and Fund Balance
To date the City’s financial statement audit has yet to be issued and revenue, expenditure, and fund balance totals listed in this report are preliminary and subject to change after a full review by the City’s auditors. City staff does not anticipate many if any changes from the auditors. 2018-19 Amended Budget Q4March
2018-19 Actual
2019-20 Amended Budget Q4March
2019-20 Actual
2020-21 Amended Budget Q4March
2020-21 Actual
2021-22 Amended Budget Q4March
2021-22 Actual
Fiscal Year Through March (cumulative amounts)
0.0 100.0M
25.0M
50.0M
75.0M
125.0M
Dollars
Revenues
Expenses
Sort Large to Small
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$5,583,966.55
Revenues Less Expenses in Mar 2022
-$5M
$0
$5M
$10M
$15M
Mar 2019 Mar 2020 Mar 2021 Mar 2022
$22,344,967.16
Revenues Less Expenses in Jun 2021
$0
$5M
$10M
$15M
$20M
$25M
Jun 2019 Jun 2020 Jun 2021
General Fund Revenue and Expenditure Trends
As of March 31, 2022, General Fund expenditures are $77.9 million; this represents 58% of budgeted appropriations. Expenditures at the Third Quarter point of the prior three years were between 67% and 75% of budgeted expenditures, placing this year below the range.
General Fund revenues are $73.1 million; this represents 62% of the budgeted revenue. Revenues at the Third Quarter point of the prior three years were between 58% and 77% of budgeted revenues, placing this year within the range.
General Fund Revenues - Third Quarter Budget vs Actuals Data Updated 5 days ago
3/2019 3/2020 3/2021 3/2022
62.02%
In Revenues of $134,543,590.00 Budgeted through Mar 2022 General Fund Expenditures - Third Quarter Budget vs Actuals Data Updated 5 days ago
3/2019 3/2020 3/2021 3/2022
57.90%
In Expenses of $134,469,314.00 Budgeted through Mar 2022 As of Third Quarter, General Fund revenue is $83.4 million, an increase of $10.4 million (or 14%) from last year due to a one-time transfer related to the American Rescue Plan Act. Additionally, transient occupancy tax revenue is $1.0 million, or 81%, higher than last year as travel rebounds due to the relaxation of pandemic-based restrictions.
As of Third Quarter, General Fund expenditures are $77.9 million, an increase of $15.0 million (or 24%) compared to last year. Transfers increased due to transfers to allocate American Rescue Plan Act funding to departments and transfers to the Capital Reserve.
General Fund Revenues Less Expenses at Third-Quarter General Fund Revenues Less Expenses at Year End 289
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$83,438,962.07
Revenues in Mar 2022
$0
$20M
$40M
$60M
$80M
$100M
$120M
Mar 2019 Mar 2020 Mar 2021 Mar 2022
$77,854,995.52
Expenses in Mar 2022
$0
$20M
$40M
$60M
$80M
$100M
Mar 2019 Mar 2020 Mar 2021 Mar 2022
$83,438,962.07
Revenues in Mar 2022
Sales Tax
Other
Intergovernm...
Transfers In
Charges for ...
Property Tax
$77,854,995.52
Expenses in Mar 2022
Transfers Ou...
Contract Ser...
Other
Employee Ben...
Cost Allocat...
Employee Com...
General Fund Classification of Fund Balance
The City's General Fund ended FY 2020-21 with $96.9 million in total fund balance. As of the First Quarter Report, the City updated its FY 2021-22 year-end projections to $111.9 million in total fund balance, increasing $28.8 million due to increased revenues and lower expenditures in FY 2020-21. As of the MidYear Financial Report, the City updated its FY 2021-22 year-end projections to $101.8 million in total fund balance due to a one-time transfer of $10 million to the Capital Reserve Fund. The City also transferred funds from unassigned to other classifications within the General Fund: $2 million to the Section 115 Pension Trust (restricted), $5 million to the Economic Uncertainty Reserve (committed), and $10 million to a new Capital Projects Reserve (committed).
Year-end fund balance as of Third Quarter FY 2021-22 is projected to be $110.7 million, an increase of $8.9 million (or 9%). The increase is due to higher sales tax revenue estimates.
General Fund Revenues - Third Quarter vs Year End Actual General Fund Expenditures - Third Quarter vs Year End Actual General Fund Revenues by Type General Fund Expenses by Type 290
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Recommended Adjustments
As of the third quarter, a few departments are requesting budget adjustments to ensure they end the year within budget appropriations. The recommended adjustments are summarized below. 291
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$9,448,487.00
Funds in 2022
General Fund
Capital Impr...
$529,935.00
Funds in 2022
General Fund
Transportati...
Blackberry F...
Capital Impr...
$9,448,487.00
Departments in 2022
Non Departme...
Capital Proj...
Community De...
$529,935.00
Departments in 2022
Community De...
Capital Proj...
Public Works
Parks and Re...
Non Departme...
Summary
The Third Quarter Financial Report shows the City is well-positioned to move forward. City staff recommends adjustments of $529,935 in new appropriations funded by $9,448,487 in new revenues. If approved, the City's fund balance across all funds will increase by $8,918,552.
City of Cupertino, California
Cupertino City Hall
10300 Torre Avenue
Cupertino, CA 95014-3202
View the City Council Meeting Agendas
View the City's Budgets
View the City's Financial Transparency Portal
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Revenue Adjustments by Fund Expense Adjustments by Fund Revenue Adjustments by Department Expense Adjustments by Department 292
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FY 2021-22 Third Quarter Budget Adjustment Journal ATTACHMENT C
Fund GL Account Expense Revenue Change in Fund Balance Proposal GENERAL FUND100 General Fund 100‐71‐701‐480‐405 ‐ 138,738 138,738 On‐Call Special Projects100 General Fund 100‐71‐701‐701‐702 120,642 ‐ (120,642) On‐Call Special Projects100 General Fund 100‐73‐714‐410‐422 ‐ 123,077 123,077 Canyon Crossing ‐ Plan Review Consultant100 General Fund 100‐73‐714‐701‐701 80,000 ‐ (80,000) Canyon Crossing ‐ Plan Review Consultant 100 General Fund 100‐82‐804‐750‐072 (25,000) ‐ 25,000 Transfer for City Hall Improvements 100 General Fund 100‐84‐809‐700‐702 7,390 ‐ (7,390) Ballfield Fencing 100 General Fund 100‐84‐809‐700‐702 20,000 ‐ (20,000) Veteransʹ Memorial Maintenance 100 General Fund 100‐84‐813‐700‐702 21,140 ‐ (21,140) Wilson Park Tree Maintenance 100 General Fund 100‐87‐827‐700‐702 14,000 ‐ (14,000) Emergency Elevator Repair 100 General Fund 100‐87‐827‐700‐702 5,957 ‐ (5,957) Lobby Monitor Electrical 100 General Fund 100‐87‐828‐700‐702 17,792 ‐ (17,792) Janitorial & Security Services
100 General Fund 100‐87‐840‐700‐702 36,919 ‐ (36,919) Janitorial & Security Services
100 General Fund 100‐87‐852‐700‐702 3,760 ‐ (3,760) Janitorial & Security Services
100 General Fund 100‐90‐001‐401‐401 ‐ 9,056,437 9,056,437 Sales Tax Estimate Increase100 General Fund 100‐90‐001‐800‐902 25,000 ‐ (25,000) Transfer for City Hall Improvements TOTAL GENERAL FUND 327,600 9,318,252 8,990,652
SPECIAL REVENUE FUNDS270 Transportation Fund 270‐85‐821‐900‐990 (105,235) ‐ 105,235 Transfer for Regnart Road Improvements 270 Transportation Fund 270‐90‐001‐800‐902 105,235 ‐ (105,235) Transfer for Regnart Road Improvements TOTAL SPECIAL REVENUE FUNDS ‐ ‐ ‐
CAPITAL PROJECT FUNDS420 Capital Improvement Fund 420‐99‐068‐421‐401 ‐ 105,235 105,235 Transfer for Regnart Road Improvements421 Capital Improvement Fund 420‐99‐068‐900‐905 105,235 ‐ (105,235) Transfer for Regnart Road Improvements 422 Capital Improvement Fund 420‐99‐248‐421‐401 ‐ 25,000 25,000 Transfer for City Hall Improvements423 Capital Improvement Fund 420‐99‐248‐700‐702 25,000 ‐ (25,000) Transfer for City Hall Improvements TOTAL CAPITAL PROJECT FUNDS 130,235 130,235 ‐
ENTERPRISE FUNDS560 Blackberry Farm Golf Course 560‐63‐616‐900‐945 72,100 ‐ (72,100) BBF Golf Course Netting Replacement TOTAL ENTERPRISE FUNDS 72,100 ‐ (72,100)
TOTAL ALL FUNDS $ 529,935 $ 9,448,487 $ 8,918,552
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Detailed Carryovers, Council Approved Adjustments, and Encumbrance Carryovers ATTACHMENT D
Budget Adjustment Type Fund Description Amount
BUDGET CARRYOVERSBudget Carryover 100 General Fund ActiveNet Expansion 20,000 Budget Carryover 100 General Fund Adaptive Traffic Signaling ‐ project in progress 13,156 Budget Carryover 100 General Fund Alternatives to City Hall ‐ Project in progress 25,000Budget Carryover 100 General Fund Andersonʹs tree work‐ in progress 65,000Budget Carryover 100 General Fund Banning Gas Powered Leaf Blower 1,158Budget Carryover 100 General Fund bike fleet maintenance 10,000
Budget Carryover 100 General Fund Block Leader Materials 4,000Budget Carryover 100 General Fund City Facility reconfiguration/remodels/return to work 132,481 Budget Carryover 100 General Fund Climate Action Plan report 4,500 Budget Carryover 100 General Fund Climate Victory Gardens 72,800 Budget Carryover 100 General Fund Collins/Faria trip hazard mitigation ‐ work scheduled 25,000Budget Carryover 100 General Fund Covid requests 15,000Budget Carryover 100 General Fund Covid‐delayed bike/ped education 20,000 Budget Carryover 100 General Fund Covid‐delayed bike/ped program supplies 12,204 Budget Carryover 100 General Fund Council Tech (3,440)Budget Carryover 100 General Fund CSTI/Bay Area UASI training 6,200 Budget Carryover 100 General Fund CWP MuniCode updates ‐ ongoing 25,000 Budget Carryover 100 General Fund CWP Residential/Mixed Use ‐ ongoing 49,000 Budget Carryover 100 General Fund CWP Urban Village ‐ ongoing 250,000 Budget Carryover 100 General Fund Data Literacy training 13,000 Budget Carryover 100 General Fund Digitize documents 40,000Budget Carryover 100 General Fund Don Burnett Bridge repairs & inspection 197,484
Budget Carryover 100 General Fund eBuilder 17,500Budget Carryover 100 General Fund EE Commute Pilot Ph2 26,500 Budget Carryover 100 General Fund Enhancement of Conf Rms, AV svcs 36,572 Budget Carryover 100 General Fund Environmental Consulting Services 14,000 Budget Carryover 100 General Fund Ergo 4,564
Budget Carryover 100 General Fund Ergo Eval 1,600
Budget Carryover 100 General Fund General Plan Authorization ‐ on going 6,500 Budget Carryover 100 General Fund Gogobiblio program 117,000 Budget Carryover 100 General Fund hybrid workspaces 1,315 Budget Carryover 100 General Fund Internal Audit Services 50,000Budget Carryover 100 General Fund Irrigation Controller Settlement 280,675Budget Carryover 100 General Fund Laserfiche Scanning 50,000 Budget Carryover 100 General Fund last minute mandates/requests 62,000Budget Carryover 100 General Fund Locker room/restroom floor replacement/repairs 11,174 Budget Carryover 100 General Fund Management Partner Adhoc services 9,040 294
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Detailed Carryovers, Council Approved Adjustments, and Encumbrance Carryovers ATTACHMENT D
Budget Adjustment Type Fund Description AmountBudget Carryover 100 General Fund Marina Project ‐ ongoing 80,145 Budget Carryover 100 General Fund Marketing Graphic design svcs ‐ Staff paternity leave 10,000 Budget Carryover 100 General Fund marketing of programs and events 1,000 Budget Carryover 100 General Fund Mayor fund 2,395Budget Carryover 100 General Fund Monta Vista trip hazard mitigation‐work scheduled 25,000 Budget Carryover 100 General Fund Municipal Water System Work Plan Item 28,932 Budget Carryover 100 General Fund new commissioners misc exps 1,000 Budget Carryover 100 General Fund Playground chip ‐ purchase/work scheduled 95,891 Budget Carryover 100 General Fund Poet Laureate 1,634Budget Carryover 100 General Fund pool pump VFD device 60,000 Budget Carryover 100 General Fund Presidio Graduate School consulting 19,900 Budget Carryover 100 General Fund Sewer replacement ‐ work in progress 25,000 Budget Carryover 100 General Fund Signage 515Budget Carryover 100 General Fund Smarsh 65,000Budget Carryover 100 General Fund Special Projects PW Scanning Project 64,009Budget Carryover 100 General Fund Stay Active fun d for senior support 32,477
Budget Carryover 100 General Fund Sustainable Infrastructure Audit 10,000 Budget Carryover 100 General Fund T/s intersection modification ‐ project in progress 47,707Budget Carryover 100 General Fund Tantua 14 ‐ plan check near completion 404,280 Budget Carryover 100 General Fund The Hamptons ‐ ongoing 108,640 Budget Carryover 100 General Fund VIA Community Shuttle Pilot Program Work Plan 9,402Budget Carryover 100 General Fund VTA CMP Member Agency Fees; invoice pending 85,586 Budget Carryover 100 General Fund VTC ‐ ongoing 16,748
Budget Carryover 100 General Fund VTC‐ inspections ongoing 5,406,634 Budget Carryover 100 General Fund VTC plan review ‐ on going 13,500,000Budget Carryover 100 General Fund VTC‐Project in progress, no addʹl funding in FY22 792,607Budget Carryover 100 General Fund Wejo ‐ Travel volumn/data 10,000Budget Carryover 100 General Fund Westport ‐ ongoing 17,048 Budget Carryover 100 General Fund Zendesk Expansion 50,000 TOTAL GENERAL FUNDS 22,657,533
Budget Carryover 230 Env Mgmt Cln Crk Strm Drain Consultant for new landfill agreement 40,000 Budget Carryover 230 Env Mgmt Cln Crk Strm Drain Don Burnett Bridge repairs & inspection. 55,000
Budget Carryover 230 Env Mgmt Cln Crk Strm Drain Low income cost share 13,144 Budget Carryover 230 Env Mgmt Cln Crk Strm Drain Permeable Pavement 12,500Budget Carryover 230 Env Mgmt Cln Crk Strm Drain Special project SVC CTR IND Inspection 2,600 Budget Carryover 230 Env Mgmt Cln Crk Strm Drain Trash Enclosures ‐ Project in progress 2,500 Budget Carryover 260 CDBG CDBG‐CV 113,715
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Detailed Carryovers, Council Approved Adjustments, and Encumbrance Carryovers ATTACHMENT D
Budget Adjustment Type Fund Description AmountBudget Carryover 265 BMR Housing ELI Housing 150,000Budget Carryover 265 BMR Housing Housing Strategies ‐ ongoing 5,044 Budget Carryover 265 BMR Housing Housing Survey 6,682Budget Carryover 270 Transportation Fund 1 additional gateway sign‐work to be scheduled 25,859 Budget Carryover 270 Transportation Fund Annual asphalt project‐work in progress 1,270,505Budget Carryover 270 Transportation Fund Annual SW Curb & Gutter project in progress 76,985
Budget Carryover 270 Transportation Fund Bridge Rehab Minor ‐ project in progress 514,270 Budget Carryover 270 Transportation Fund Guard Rail Repair ‐ Work in progress 25,750 Budget Carryover 270 Transportation Fund Homestead/De Anza Signal Upgrade 160,645 Budget Carryover 270 Transportation Fund Orange
& Byrne Sidewalk Improvements 2,382,398
Budget Carryover 270 Transportation Fund Ph 1 & Ph 2 Pavement digouts, crack seal & fog seal 250,000
Budget Carryover 270 Transportation Fund Ph2 McClellan Sidewalk 100,000Budget Carryover 270 Transportation Fund Regnart Road Repairs‐work scheduled. 105,235 Budget Carryover 270 Transportation Fund SBI Funds‐work scheduled. Covid delay. 800,000 Budget Carryover 270 Transportation Fund Traffic Calming ‐ project in progress 198,241 Budget Carryover 280 Park Dedication Lawrence‐Mitty Park ‐ project in progress 5,438,179 TOTAL SPECIAL REVENUE FUNDS 11,749,252
Budget Carryover 420 Capital Improvement Fund ADA Improvements‐project in progress 43,545 Budget Carryover 420 Capital Improvement Fund Banner Bank ‐ retainage (23,496) Budget Carryover 420 Capital Improvement Fund Bike Plan Implementation‐ project in progress 5,899,816 Budget Carryover 420 Capital Improvement Fund BKF Engineers 052421‐062721 inv#21070933 (50,056) Budget Carryover 420 Capital Improvement Fund Bubb Rd Separated Bikeway Improv ‐ project in progress 1,101,882 Budget Carryover 420 Capital Improvement Fund Citywide Community Garden ‐ project scheduled 265,685 Budget Carryover 420 Capital Improvement Fund Civic Center Parking Analysis ‐ project in progress 848,350 Budget Carryover 420 Capital Improvement Fund CW Bldg Condition Assess Impl‐project in progress 673,770 Budget Carryover 420 Capital Improvement Fund Inclusive Play Area Planning‐project in progress 5,465,361 Budget Carryover 420 Capital Improvement Fund Library Expansion ‐ project in progress 1,299,707 Budget Carryover 420 Capital Improvement Fund Linda Vista Trail ‐ project in progress 47,066 Budget Carryover 420 Capital Improvement Fund Mary Ave Protected Bikeway ‐ project scheduled 158,148 Budget Carryover 420 Capital Improvement Fund McClellan Ranch West Parking Lot Impro 55,891 Budget Carryover 420 Capital Improvement Fund MR Community Garden Improv‐project in progress 18,553 Budget Carryover 420 Capital Improvement Fund Playground Equipment (Creekside & Varian) 300,000
Budget Carryover 420 Capital Improvement Fund Regnart Road Improvements‐project in progress 850,382 Budget Carryover 420 Capital Improvement Fund Retaining Wall Repair ‐ Cordova Rd ‐ project in progress 25,000 Budget Carryover 420 Capital Improvement Fund Rodan ‐ Library expansion thru 6/30/21 (446,429)Budget Carryover 420 Capital Improvement Fund SCB/Bandley Signal & Median Imps ‐ project in progress 142,208
Budget Carryover 420 Capital Improvement Fund SCCP Chain MP‐MCLN to SCB ‐ project in progress 203,322 296
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Detailed Carryovers, Council Approved Adjustments, and Encumbrance Carryovers ATTACHMENT D
Budget Adjustment Type Fund Description AmountBudget Carryover 420 Capital Improvement Fund School Walk Audit Implementation ‐ project in progress 1,084,133 Budget Carryover 420 Capital Improvement Fund Senior Center Walkway Replacement 14,288 Budget Carryover 420 Capital Improvement Fund SLTG/280 Ped Bridge Lighting ‐ project to be scheduled 46,449 Budget Carryover 420 Capital Improvement Fund St Light Install ‐ Annual Infill ‐ project in progress 128,416Budget Carryover 420 Capital Improvement Fund St Light Replacement CW (labor)‐project scheduled for FY 21 98,929 Budget Carryover 420 Capital Improvement Fund Stevens Crk Bank Repair Concept‐project to be scheduled 30,216 Budget Carryover 420 Capital Improvement Fund Various Park Amenities ‐ project in progress 200,000 Budget Carryover 427 Stevens Creek Corridor Park Ph II SC Corridor Park ‐ project in progress 21,431Budget Carryover 427 Stevens Creek Corridor Park Stevens Creek Corridor Park Ph 1 ‐ project in progress 38,115 TOTAL CAPITAL PROJECTS FUNDS 18,540,682
Budget Carryover 520 Resource Recovery HHW and PaintCard Transactions ‐ Work in progress 25,200 Budget Carryover 520 Resource Recovery Pending CalRecycle Transactions ‐ Work in progress 6,697Budget Carryover 520 Resource Recovery Single Use Plastics Ordinance Work Plan 30,000Budget Carryover 520 Resource Recovery Trash Enclosure SWMP ‐ Project in progress 2,500Budget Carryover 560 Blackberry Farm BBF Entrance Rd Improv Feasibility ‐ project in progress 1,261 Budget Carryover 560 Blackberry Farm BBF Golf Renovation/Alt Use ‐ project in progress 50,000 Budget Carryover 560 Blackberry Farm tree work 13,350Budget Carryover 570 Sports Center HVAC System work in progress 18,000 Budget Carryover 570 Sports Center Sport Center Community Needs Analysis 25,000 Budget Carryover 570 Sports Center Sport Center Seismic Retrofit ‐ project in progress 294,832 Budget Carryover 580 Recreation Program Quinlan Preschool Shad Structure ‐ project in progress 46,912 Budget Carryover 580 Recreation Program Quinlan Sustainable Infrastructure 341,617 TOTAL ENTERPRISE FUNDS 855,369
Budget Carryover 610 Innovation
& Technology Facility Battery 40,000
Budget Carryover 630 Vehicle/Equip Replacement Equipment purchase‐ Covid supply delay 20,790 TOTAL INTERNAL SERVICE FUNDS 60,790
TOTAL BUDGET CARRYOVERS 53,863,626
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Detailed Carryovers, Council Approved Adjustments, and Encumbrance Carryovers ATTACHMENT D
Budget Adjustment Type Fund Description AmountCOUNCIL ACTIONSCouncil Action 100 General Fund 2122‐153 Appropriate $38,352 for 0.25 FTE Block Leader Position 38,352 Council Action 100 General Fund Adaptive Traffic Signaling (CWP) 160,000Council Action 100 General Fund BA #2122‐170 to increase budget for Municipal Water System 31,500 Council Action 100 General Fund Blackberry Farm Main Line Break Repair 16,800 Council Action 100 General Fund City Hall HVAC Ventilation 120,000Council Action 100 General Fund Community Garden Lock Replacement 3,149 Council Action 100 General Fund Construction Plan Check 80,000Council Action 100 General Fund Economic Development Functional Transfer 0Council Action 100 General Fund Economic Development Strategic Plan 30,000 Council Action 100 General Fund Lawrence Mitty Site Fence Repairs 20,000 Council Action 100 General Fund Library Bikeep Monthly Maintenance Fees 588 Council Action 100 General Fund Library Boiler Piping Improvements 19,000 Council Action 100 General Fund Library Cooling Repairs 35,000 Council Action 100 General Fund Library Security System Enhancements 22,362 Council Action 100 General Fund Linda Vista Trail Lockdown 9,120 Council Action 100 General Fund Local Roadway Safety Plan 80,000Council Action 100 General Fund McClellan Ranch Park Path Repairs 54,966 Council Action 100 General Fund Memorial Park Softball Fencing 31,950 Council Action 100 General Fund Plan check contract approval for Westport 300,000 Council Action 100 General Fund PLAN JPA‐Premium/Unforeseen Settlement Costs 200,000 Council Action 100 General Fun
d Portable Restroom
& Hand Washing Station 5,042
Council Action 100 General Fund QCC Tree Removal and Replacement 14,400 Council Action 100 General Fund RHNA City Work Program 774,248Council Action 100 General Fund Service Center Automatic Gate Install 199,514 Council Action 100 General Fund Transfer from General Fund to Capital Reserve 10,000,000Council Action 100 General Fund Transfer Out of Gen Fund Non‐Departmental 4,847,387 Council Action 100 General Fund Unhoused Encampment Cleanup 25,000 Council Action 100 General Fund Westport legal services 20,228 TOTAL GENERAL FUNDS 17,138,606
Council Action 230 Env Mgmt Cln Crk Strm Drain CUSD Cost Share for School Field Areas 8,706 Council Action 230 Env Mgmt Cln Crk Strm Drain Portable Water Meter and Service 3,975Council Action 265 BMR Housing Transfer out to Gen Fund (Homeless Encampment) 200,000 Council Action 280 Park Dedication LMP Debris Removal, Clean Up, and Tree Removal 910,000 TOTAL SPECIAL REVENUE FUNDS 1,122,681
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Detailed Carryovers, Council Approved Adjustments, and Encumbrance Carryovers ATTACHMENT D
Budget Adjustment Type Fund Description AmountCouncil Action 420 Capital Improvement Fund All‐Inclusive Play Area Budget Reduction (1,847,699)Council Action 420 Capital Improvement Fund BA #2021‐109 to increase budget and revenue for 1,936,000 TOTAL CAPITAL PROJECTS FUNDS 88,301
Council Action 520 Resource Recovery New Landfill Agrment/Solid Waste Consulting Svcs 350,000 Council Action 560 Blackberry Farm Additional Revenue Estimate and Bank Charges 9,350 Council Action 560 Blackberry Farm Budget Modification #2122‐148 per 7/20/2021 CC instructions 26,400 Council Action 560 Blackberry Farm Golf Course Netting Replacement 64,900 Council Action 560 Blackberry Farm Tree Maintenance 10,300 Council Action 570 Sports Center HVAC #4 Controls Repair 6,500 Council Action 570 Sports Center Power Surge Breaker Replacement 10,000 TOTAL ENTERPRISE FUNDS 477,450
Council Action 610 Innovation
& Technology CIP Management System 150,000
Council Action 630 Vehicle/Equip Replacement Leaf Blower Replacement 26,000 Council Action 630 Vehicle/Equip Replacement Security Surveillance System Lawrence Mitty Site 40,045 TOTAL INTERNAL SERVICE FUNDS 216,045
TOTAL COUNCIL ACTIONS 19,043,083
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Detailed Carryovers, Council Approved Adjustments, and Encumbrance Carryovers ATTACHMENT D
Budget Adjustment Type Fund Description AmountENCUMBRANCE CARRYOVERSEncumbrance Carryover 100 General Fund Year End Soft Close 4,906,141 TOTAL GENERAL FUNDS 4,906,141
Encumbrance Carryover 230 Env Mgmt Cln Crk Strm Drain Year End Soft Close 54,245 Encumbrance Carryover 265 BMR Housing Year End Soft Close 13,932Encumbrance Carryover 270 Transportation Fund Year End Soft Close 2,313,039Encumbrance Carryover 280 Park Dedication Year End Soft Close 32,900 TOTAL SPECIAL REVENUE FUNDS 2,414,116
Encumbrance Carryover 420 Capital Improvement Fund Year End Soft Close 9,149,571 TOTAL CAPITAL PROJECTS FUNDS 9,149,571
Encumbrance Carryover 520 Resource Recovery Year End Soft Close 16,362 Encumbrance Carryover 570 Sports Center Year End Soft Close 23,440 Encumbrance Carryover 580 Recreation Program Year End Soft Close 150,031 TOTAL ENTERPRISE FUNDS 189,833
Encumbrance Carryover 610 Innovation
& Technology Year End Soft Close 154,019
Encumbrance Carryover 630 Vehicle/Equip Replacement Year End Soft Close 54,681 TOTAL INTERNAL SERVICE FUNDS 208,700
TOTAL ENCUMBRANCE CARRYOVERS 16,868,361
89,775,070
148,845,235
$ 238,620,305
TOTAL CARRYOVERS, COUNCIL APPROVED ADJUSTMENTS, AND ENCUMBRANCE CARRYOVERS FY 2021‐22 AMENDED BUDGET AS OF MARCH 31, 2022
FY 2021‐22 ADOPTED BUDGET
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Budget Transfers Detail as of March 31, 2022 ATTACHMENT E GL Account Description Amount100‐10‐100 700‐702 ‐ Contract Services General Service Agreement 2122‐174 Housing Op Ed Tripepi Contract 2,400100‐14‐123 719‐705 ‐ Contingencies Contingencies 2122‐174 Housing Op Ed Tripepi Contract (2,400)100‐12‐120 600‐642 ‐ Materials Telphone and Data Services BMN 2122‐155 Satellite Phone to OEM (1,040)100‐12‐633 600‐642 ‐ Materials Telphone and Data Services BMN 2122‐155 Satellite Phone to OEM 1,040 100‐83‐807 600‐608 ‐ Materials Sml Tools and Equipment Budget transfer of legal settlement $ from 600‐608 to 600‐617 (277,140) 100‐83‐807 600‐617 ‐ Materials Irrigation Improvement Budget transfer of legal settlement $ from 600‐608 to 600‐617 277,140100‐15‐141 600‐613 ‐ Materials General Supplies CAO annual subscriptions 10,425 100‐15‐141 700‐702 ‐ Contract Services General Service Agreement CAO annual subscriptions (10,425)100‐15‐141 600‐642 ‐ Materials Telphone and Data Services CAO cell phone 432 100‐15‐141 700‐702 ‐ Contract Services General Service Agreement CAO cell phone (432)100‐15‐141 600‐647 ‐ Materials Memberships and Dues CAO membership & dues 1,130 100‐15‐141 700‐702 ‐ Contract Services General Service Agreement CAO membership & dues (1,130)100‐15‐141 500‐501 ‐ Employee Compensation Salaries Full Time City Attorney reclass for salary and benefits 255,000 100‐15‐141 500‐506 ‐ Employee Compensation Car Allowance City Attorney reclass for salary and benefits 4,200 100‐15‐141 501‐500 ‐ Employee Benefits Retirement System City Attorney reclass for salary and benefits 79,790100‐15‐141 501‐502 ‐ Employee Benefits Pers 1959 Surv Empr City Attorney reclass for salary and benefits 62 100‐15‐141 501‐505 ‐ Employee Benefits Health Insurance City Attorney reclass for salary and benefits 4,500100‐15‐141 501‐506 ‐ Employee Benefits Dental Insurance City Attorney reclass for salary and benefits 1,372 100‐15‐141 501‐507 ‐ Employee Benefits Medicare City Attorney reclass for salary and benefits 3,698100‐15‐141 501‐508 ‐ Employee Benefits Life Insurance City Attorney reclass for salary and benefits 720 100‐15‐141 501‐509 ‐ Employee Benefits Long Term Disability City Attorney reclass for salary and benefits 654 100‐15‐141 501‐511 ‐ Employee Benefits Vision Insurance City Attorney reclass for salary and benefits 179 100‐15‐141 501‐513 ‐ Employee Benefits Rec Bucks City Attorney reclass for salary and benefits 500 100‐15‐141 501‐517 ‐ Employee Benefits Deferred Comp City Attorney reclass for salary and benefits 19,500 100‐15‐141 700‐702 ‐ Contract Services General Service Agreement City Attorney reclass for salary and benefits (370,175) 100‐71‐705 500‐501 ‐ Employee Compensation Salaries Full Time Economic Development Manager 115,115 100‐71‐705 501‐500 ‐ Employee Benefits Retirement System Economic Development Manager 36,019 301
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Budget Transfers Detail as of March 31, 2022 ATTACHMENT E 100‐71‐705 501‐502 ‐ Employee Benefits Pers 1959 Surv Empr Economic Development Manager 41 100‐71‐705 501‐505 ‐ Employee Benefits Health Insurance Economic Development Manager 12,473 100‐71‐705 501‐506 ‐ Employee Benefits Dental Insurance Economic Development Manager 918 100‐71‐705 501‐507 ‐ Employee Benefits Medicare Economic Development Manager 1,669100‐71‐705 501‐508 ‐ Employee Benefits Life Insurance Economic Development Manager 482 100‐71‐705 501‐509 ‐ Employee Benefits Long Term Disability Economic Development Manager 438 100‐71‐705 501‐511 ‐ Employee Benefits Vision Insurance Economic Development Manager 120 100‐71‐705 501‐513 ‐ Employee Benefits Rec Bucks Economic Development Manager 335 100‐71‐705 700‐702 ‐ Contract Services General Service Agreement Economic Development Manager (167,610) 100‐71‐701 701‐701 ‐ Refundable Deposit Expense On‐Call Contracts Increase on call arborist budget 10,000 100‐71‐701 701‐702 ‐ Refundable Deposit Expense Special Contracts Increase on call arborist budget (10,000)100‐32‐308 600‐606 ‐ Materials Software Move funds within Applications Program (15,000) 100‐32‐308 700‐702 ‐ Contract Services General Service Agreement Move funds within Applications Program 15,000 610‐34‐310 600‐629 ‐ Materials Conference and Training Moving Funds from Conference & Training to Mileage (110)610‐34‐310 600‐632 ‐ Materials Mileage Reimbursement Moving Funds from Conference & Training to Mileage 110610‐34‐310 600‐606 ‐ Materials Software Moving Funds from Small Tools to Software 12,000610‐34‐310 600‐608 ‐ Materials Sml Tools and Equipment Moving Funds from Small Tools to Software (12,000) 610‐30‐300 600‐629 ‐ Materials Conference and Training moving funds to Training account (700) 610‐30‐300 700‐701 ‐ Contract Services Training and Instruction moving funds to Training account 700 100‐32‐308 600‐606 ‐ Materials Software Moving Software funds to Contract Services (8,000)100‐32‐308 700‐702 ‐ Contract Services General Service Agreement Moving Software funds to Contract Services 8,000 100‐88‐846 700‐702 ‐ Contract Services General Service Agreement Reclassing Crossing Guard Allocation to 700‐709 (435,185)100‐88‐846 700‐709 ‐ Contract Services Crossing Guard Reclassing Crossing Guard Allocation to 700‐709 435,185 100‐86‐824 750‐143 ‐ Special Projects Foothill Blvd Median Tree Work Reclassing special project budget to correct GL 30,000 100‐86‐825 750‐143 ‐ Special Projects Foothill Blvd Median Tree Work Reclassing special project budget to correct GL (30,000) 302
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Budget Transfers Detail as of March 31, 2022 ATTACHMENT E 100‐15‐141 500‐501 ‐ Employee Compensation Salaries Full Time Senior Assistant City Attorney 158,398 100‐15‐141 501‐500 ‐ Employee Benefits Retirement System Senior Assistant City Attorney 49,563100‐15‐141 501‐502 ‐ Employee Benefits Pers 1959 Surv Empr Senior Assistant City Attorney 42 100‐15‐141 501‐505 ‐ Employee Benefits Health Insurance Senior Assistant City Attorney 12,426 100‐15‐141 501‐506 ‐ Employee Benefits Dental Insurance Senior Assistant City Attorney 915 100‐15‐141 501‐507 ‐ Employee Benefits Medicare Senior Assistant City Attorney 2,297 100‐15‐141 501‐508 ‐ Employee Benefits Life Insurance Senior Assistant City Attorney 480 100‐15‐141 501‐509 ‐ Employee Benefits Long Term Disability Senior Assistant City Attorney 436100‐15‐141 501‐511 ‐ Employee Benefits Vision Insurance Senior Assistant City Attorney 120 100‐15‐141 501‐513 ‐ Employee Benefits Rec Bucks Senior Assistant City Attorney 334 100‐15‐141 700‐702 ‐ Contract Services General Service Agreement Senior Assistant City Attorney (225,011)100‐15‐141 600‐642 ‐ Materials Telphone and Data Services Senior Assistant City Attorney cell phone 432100‐15‐141 700‐702 ‐ Contract Services General Service Agreement Senior Assistant City Attorney cell phone (432) 560‐99‐088 700‐702 ‐ Contract Services General Service Agreement transfer budget from 900‐905 to 700‐702 26,400 560‐99‐088 900‐905 ‐ Capital Outlay Facility Improvements transfer budget from 900‐905 to 700‐702 (26,400)610‐30‐300 600‐629 ‐ Materials Conference and Training Transferring funds (75) 610‐30‐300 600‐647 ‐ Materials Memberships and Dues Transferring funds 75610‐34‐310 600‐606 ‐ Materials Software Transferring funds 21,200610‐34‐310 700‐701 ‐ Contract Services Training and Instruction Transferring funds (5,000)610‐34‐310 700‐703 ‐ Contract Services Maintenance of Equipment Transferring funds (15,000)610‐35‐986 700‐702 ‐ Contract Services General Service Agreement Transferring funds (1,200) Total $ ‐
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CITY OF CUPERTINO
Agenda Item
22-10743 Agenda Date: 5/19/2022
Agenda #: 11.
Subject: Consider the 2022 Annual Pavement Report (Continued from May 17, 2022) Receive the 2022 Annual Pavement Report
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CITY COUNCIL STAFF REPORT
Meeting: 5/19/2022
Subject
Consider the 2022 Annual Pavement Report.
Recommended Action
Receive the 2022 Annual Pavement Report.
Discussion
The City of Cupertino’s street network is over 138 miles in length and covers approximately 26 million square feet (eight percent of the total area of the City of Cupertino.) The street network is one of the highest valued assets maintained by the City.
With proper maintenance, an asphalt street will typically last 20 years without the need of a total reconstruction, depending on variables such as traffic load. It is widely accepted that maintaining streets in good condition is cheaper and more efficient than reconstructing streets. Extending the life of pavement, as opposed to the replacement of pavement, is the goal of the Pavement Management Program (Program.) Street condition is measured by an industry standard Pavement Condition Index (PCI,) a 100-point scale. In Cupertino, the long-term target rating has been established at 82, a rating that is equal to “Very Good” on the rating scale, as detailed in Attachment A.
Achieving and maintaining this goal ultimately leads to cost savings, as funding can be allocated to preservation rather than rehabilitation.
The Metropolitan Transportation Commission (MTC) monitors and reports on the condition of pavement in the Bay Area in their Regional Pavement Condition Summary Report. The PCI for Cupertino’s street network, along with over 100 Bay Area agencies, is updated annually in this report. Staff anticipates that the report will show that the 2021 PCI of Cupertino’s street network will be an 84, and that the three-year moving average will also be an 84. The one-year PCI value and the three-year PCI value are expected to be the same because the street network has been consistently maintained over several years.
This is also indicative of a well performing street maintenance program. At a PCI value of 84, Cupertino’s street network is ranked third out of 109 Bay Area agencies. 305
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Most street networks, including the Cupertino Street Network, degrade approximately two PCI points annually, due to weather and wear and tear from vehicles. Appropriate maintenance to a street network can overcome the degradation and successfully maintain or increase the condition of streets.
The table below shows the Cupertino Street Network PCI values for the years 2019-2021, which includes the three-year MTC Moving Average.
2019 2020 2021
Annual PCI 85 84 84
3-year Moving
Average PCI
83 85 84
The following table shows the PCI values for arterial, collector, and residential streets for the last three years, plus the 2022 PCI values that are anticipated upon completion of all scheduled projects this summer. A street-by-street listing of PCI values can be found at http://www.cupertino.org/our-city/departments/public-works/maintenanceservices/streets-sidewalks/pavement-management-program.
The street network PCI is calculated by weighting the areas of arterial, collector, and residential streets to the total combined area. The below pie chart represents the percent of total network area by arterial, collector, and residential streets. 86 84 83 83
79 79 78
80 86
84 85 84 85 84 84 84
50 55
60 65
70 75
80 85
90 2019 2020 2021 2022
Pavement Condition Index
Residential Collector Arterial Network PCI
100
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Residential streets represent the largest portion at over 70% of the total network area. With residential streets having the largest area, their PCI value has the greatest contribution to the cumulative street network PCI. The 2020 Program, although reduced, focused on collector streets. The 2021 Program focused on residential streets. The 2022 Program will focus on rehabilitation of residential streets, with preventive maintenance on collector streets.
Budget Options Report
Cities in the Bay Area typically use an application called StreetSaver, which tracks PCI and provides the ability to run various budget scenarios. Based on a series of assumptions, StreetSaver allocates available funds across the street network, recommends improvements, and forecasts future PCI if recommendations are implemented. Staff routinely updates values in StreetSaver to reflect current costs with the type of pavement treatment recommended at various PCI values. In addition, all street sections are inspected every two to four years and the PCI values are updated accordingly. The last inspection occurred in December of 2021.
Cupertino currently allocates $3 million per year to street maintenance. To maintain the current PCI of 84 through 2026, StreetSaver recommends a funding strategy with the following budget allocations:
FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26
$3 Million $3 Million $4 Million $4 Million $5 Million
Alternatively, if the City continues to allocate the current budget of $3 million per year over the next five years, StreetSaver shows a PCI decrease to 83 in 2026. 2022 Pavement Management Projects
The 2022 Pavement Maintenance Project - Phase I will go out to bid in May 2022, with work expected to begin in July 2022. The project is estimated at approximately $2 million and includes an asphalt overlay on twelve residential streets, as well as asphalt digout repairs on various streets and park pathways. The 2022 Pavement Maintenance Project - Phase II project is estimated at approximately $1 million and consists of a variety of treatments including crack fill, rubberized asphalt chip seal, and micro-surfacing. The project will go to bid in June 2022 and is expected to begin in Fall 2022. A street-by-street listing of improvements to be completed by the 2022 Pavement Maintenance Phase 1 and Arterial, 12.2%
Collector, 16.9%
Residential, 70.9%
Figure 2
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2 projects is included as Attachment B. Funding for additional crack fill and fog seal work is available in the Operations budget. The scope of work is under development and may be included in the Phase 2 Project to facilitate better bid results.
Sustainability Impact
Timely maintenance of the street network conserves valuable resources, as compared to the consumption of additional resources that are required when maintenance is not performed. The proposed funding scenario will not impact the City’s ability to provide timely preventive maintenance treatments.
Fiscal Impact
There is no fiscal impact in receiving the Annual Pavement Report.
Funding for the 2022 Pavement Maintenance Phase 1 project is currently available in Fiscal Year (FY) 2022 budget 270-85-821 900-921. Project expenses may be reimbursed by Measure B funds. At the time of project award, staff will recommend Council adopt a Resolution allocating FY 2023 funds to the 2022 Pavement Maintenance Phase 2 Project.
No additional funds are needed.
_____________________________________
Prepared by: Jo Anne Johnson, Project Manager
Reviewed by: Matt Morley, Director of Public Works
Reviewed by: Dianne Thompson, Assistant City Manager
Approved for Submission by: Jim Throop, City Manager
Attachments:
A – Ranges of PCI Values and Street Conditions
B –2022 Pavement Maintenance Project Location List
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Attachment A
Pavement Condition Value Street Condition
80-100 (Very Good–Excellent) New pavement with few signs of distress.
70-79 (Good) Pavement showing only low levels of
distress.
60-69 (Fair) Pavement that may require a
combination of rehabilitation and
preventive maintenance.
50-59 (At Risk) Deteriorated pavement requiring
immediate attention.
25-49 (Poor) Pavement showing extensive distress and
requiring major rehabilitation or
reconstruction.
0-24 (Failed) Extremely rough pavement that needs
complete reconstruction.
Pavement Condition Index (PCI)
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ATTACHMEN T B
2022 PAVEMENT MAINTENANCE PHASE 1 & 2
DRAFT PROJECT LIST
STREET NAME FROM TO TREATMENT
FLORA VISTA GREENLEAF GARDENA OVERLAY
GRENOLA ANN ARBOR FLORA VISTA OVERLAY
TAMARIND CT FLORA VISTA END OVERLAY
RODRIGUES AVE DE ANZA BLVD TORRE AVE OVERLAY
DAVISON AVE GLENVIEW E ESTATES OVERLAY
E ESTATES DR LA MAR STEVENS CREEK OVERLAY
GLENVIEW AVE E ESTATES LA MAR OVERLAY
PINEVILLE AVE LA MAR GLENVIEW OVERLAY
RICHWOOD DR VICKSBURG MILLER OVERLAY
CULBERTSON MEIGGS BARNHART OVERLAY
OAKVALLEY RD CRISTO REY JUNIPER CT OVERLAY
PROSPECT RD DE ANZA BLVD STELLING RD RUBBER CHIP/MICRO
GREENLEAF DR STELLING BEARDON RUBBER CHIP/MICRO
S TANTAU AVE STEVENS CREEK BOLLINGER RD RUBBER CHIP/MICRO STELLING RD PROSPECT 85 BRIDGE RUBBER CHIP/MICRO
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CITY OF CUPERTINO
Agenda Item
22-10870 Agenda Date: 5/19/2022
Agenda #: 12.
Subject: Consider acceptance of Offers of Dedication and a Waiver of Future Reimbursement from the property owners at 10155, 10165, and 10420 Orange Avenue, related to the Orange Avenue Sidewalk Improvements Project (Continued from May 17, 2022) Adopt Resolution No. 22-060 (Attachment A) accepting the Offers of Dedication and Waiver of Future Reimbursement from the property owners at 10155, 10165, and 10420 Orange Avenue, related to the Orange Avenue Sidewalk Improvements Project
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CITY COUNCIL STAFF REPORT
Meeting: May 19, 2022
Subject
Consider acceptance of Offers of Dedication and a Waiver of Future Reimbursement from the property owners at 10155, 10165, and 10420 Orange Avenue, related to the Orange Avenue Sidewalk Improvements Project.
Recommended Action
Adopt Resolution No. ___ (Attachment A) accepting the Offers of Dedication and Waiver of Future Reimbursement from the property owners at 10155, 10165, and 10420 Orange Avenue, related to the Orange Avenue Sidewalk Improvements Project.
Discussion
The Orange Avenue Sidewalk Improvements project will install sidewalks along Orange Avenue between McClellan Road and Stevens Creek Boulevard. This corridor is a school route that currently involves students travelling on the asphalt roadway. Sidewalks will create a safe route to the schools. During the design of the project, the need for additional right-of-way was identified in four locations. Three property owners have donated property rights for the construction of the sidewalk improvements in exchange for a waiver of future reimbursement for City of Cupertino funded public improvements.
The one remaining property owner has declined to donate the necessary property rights.
At that location, the sidewalk will be discontinuous until such time as the property owner submits a development application. When that occurs, the development will be conditioned to dedicate the necessary right-of-way and construct full public improvements at no cost to the City. Section 14.04.110 of the City of Cupertino Municipal Code provides that when the City of Cupertino, or another property owner installs public improvements that benefit a property, the owner of the benefitted property is required to reimburse the City for its reasonable share of the costs of such improvements when the benefitted property owner seeks a land use entitlement from the City. However, if a property owner dedicates necessary right-of-way to the City without charge, the City may enter into an agreement with the owner to waive future reimbursement requirements.
Sustainability Impact
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Acceptance of the land dedications will allow the sidewalk improvements project to be constructed. This project will encourage walking by providing a safe path of travel, which is consistent with the Mobility Element of the General Plan, Goal M-3 (“Support a Safe Pedestrian and Bicycle Network for People of All Ages and Abilities,”) and Climate Action Plan (2014) Goal 2, Alternative Transportation.
Fiscal Impact
By authorizing these donations, the City will receive approximately 1008 square feet of land. No additional funding is required.
_____________________________________
Prepared by: John Raaymakers, Project Manager
Reviewed by: Matt Morley, Director of Public Works
Reviewed by: Dianne Thompson, Assistant City Manager
Approved for Submission by: Jim Throop, City Manager
Attachments:
A – Draft Resolution
B – Signed Agreement
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Attachment A
RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
TO ACCEPT THE DEDICATION OF PRIVATE PROPERTY RIGHTS TO
10155, 10165, AND 10420 ORANGE AVENUE FOR THE CONSTRUCTION OF
SIDEWALK IMPROVEMENTS ON ORANGE AVENUE AND WAIVING
FUTURE REIMBURSEMENT OF CITY-FUNDED PUBLIC IMPROVEMENTS WHEREAS, THE City desires to construct sidewalks on Orange Avenue in areas where the sidewalks are currently discontinuous; and WHEREAS, section 14.04.110 of the City of Cupertino Municipal Code allows the City to provide a waiver of future reimbursement of the cost for Cityfunded public improvements when the property owner donates the property rights necessary for the improvement project; and
WHEREAS, three property owners have donated property rights along their property frontages necessary for the construction of the Orange Avenue Sidewalk Improvements Project; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby accepts the dedication of property to 10155, 10165, and 10420 Orange Avenue and as further described in each of the three Agreements Regarding Offer of Dedication and Waiver of Future Reimbursement, attached as Exhibits A through C.
PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 19th day of May 2022, by the following vote:
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
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Resolution No. __________________
SIGNED:
________
Darcy Paul, Mayor
City of Cupertino
________________________
Date
ATTEST:
________
Kirsten Squarcia, City Clerk
________________________
Date
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Attachment B
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Attachment B
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CITY OF CUPERTINO
Agenda Item
22-10824 Agenda Date: 5/19/2022
Agenda #: 13.
Subject: Consider award of a construction contract for the Orange Avenue Sidewalk Improvements Project (Project 2016-10.1) for the construction of sidewalk, curb, gutter, storm drainage modifications, and associated improvements on Orange Avenue, between McClellan Road and Stevens Creek Boulevard (Continued from May 17, 2022)
Award a construction contract for the Orange Avenue Sidewalk Improvements Project, authorize the City Manager to execute a contract in the amount of $1,738,875.00 with Redgwick Construction Company and authorize the Director of Public Works to execute any necessary change orders, up to the construction contingency amount of $173,888.00 (10% of contract amount,) for a total authorized contract amount of $1,912,763.00
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CITY COUNCIL STAFF REPORT
Meeting: May 19, 2022
Subject
Consider award of a construction contract for the Orange Avenue Sidewalk Improvements Project (Project 2016-10.1) for the construction of sidewalk, curb, gutter, storm drainage modifications, and associated improvements on Orange Avenue, between McClellan Road and Stevens Creek Boulevard.
Recommended Action
Award a construction contract for the Orange Avenue Sidewalk Improvements Project, authorize the City Manager to execute a contract in the amount of $1,738,875.00 with Redgwick Construction Company, and authorize the Director of Public Works to execute any necessary change orders, up to the construction contingency amount of $173,888.00 (10% of contract amount,) for a total authorized contract amount of $1,912,763.00.
Discussion
The Orange Avenue Sidewalk Improvements Project will install sidewalks where there are currently gaps on Orange Avenue between McClellan Road and Stevens Creek Boulevard, providing a continuous off-street walking route. Orange Avenue is a wellused route for school children who attend Lincoln Elementary School and Monta Vista High School, both of which are located on McClellan Road near the southern end of Orange Avenue. Orange Avenue is also a designated bike route.
Utility work to be done in conjunction with the sidewalk project will relocate existing utility poles, several of which are currently well beyond the edge of the roadway. The infill of sidewalk gaps, improved storm drainage, and relocated utility poles will result in a more comfortable and safer environment for pedestrians, bicyclists, and motorists.
Cupertino advertised the project for bids on April 18, and the bids were opened on May
10. Four bids were received, with the apparent low bid received from Terramark General Engineering Contractors, Inc. A math check revealed an error in Terramark’s bid calculation. Subsequently, Redgwick Construction was determined to have submitted the lowest bidwhich was approximately (3.4% below the engineer’s estimate.) 347
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Bidder Project Bid
Redgwick Construction $1,738,875.00
Sposeto Engineering, Inc. $1,771,855.00
Terramark General Engineering Contractors, Inc. $1,778,463.00 Engineer’s Estimate $1,800,000.00
FBD Vanguard Construction, Inc. $1,835,567.55
Municipal Code section 3.23.070 provides that a public works contract shall be awarded by the City Council to the lowest responsible bidder unless an exception set forth in Chapter 3.23 (e.g., a finding that the lowest bidder is not responsible) applies. The bid submission from Redgwick Construction was reviewed for completeness, and the contractor’s experience and qualifications were confirmed. It is determined that Redgwick Construction is the lowest responsive and responsible bidder.
The work for this project is scheduled to start within 30 days of contract award date.
Sustainability Impact
This project is exempt from the California Environmental Quality Act (CEQA) under 14 California Code of Records Section 15031 (minor alteration of existing facilities.) The Cupertino Climate Action Plan (2014) Measure C-T-1 directs the City to encourage multi-modal transportation, including walking and biking, through safety and comfort enhancements in the bicycle and pedestrian environment.
Fiscal Impact
The Fiscal Year (FY) 2021-22 Capital Improvement Project (CIP) budget includes the Orange (& Byrne) Avenue Sidewalks Improvements Project (budget unit 270-90-958). No additional funding is required.
_____________________________________
Prepared by: John Raaymakers, Public Works Project Manager Reviewed by: Matt Morley, Director of Public Works
Reviewed by: Diane Thompson, Assistant City Manager
Approved for Submission by: City Manager or Assistant City Manager Attachments:
A – Draft Contract
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Orange Ave. Sidewalk Improvements CONTRACT
Proj. No. 2016-10.1 Page 20
Contract
This public works contract (“Contract”) is entered into by and between City of Cupertino (“City”) and Redgwick Construction Company (“Contractor”), for work on the Orange Avenue Sidewalk Improvements Project (“Project”).
The parties agree as follows:
1. Award of Contract. In response to the Notice Inviting Bids, Contractor has submitted a Bid Proposal to perform the Work to construct the Project. On _____________, 20___, City authorized award of this Contract to Contractor for the amount set forth in Section 4, below.
2. Contract Documents. The Contract Documents incorporated into this Contract include and are comprised of all of the documents listed below. The definitions provided in Article 1 of the General Conditions apply to all of the Contract Documents, including this Contract.
2.1 Notice Inviting Bids;
2.2 Instructions to Bidders;
2.3 Addenda, if any;
2.4 Bid Proposal and attachments thereto;
2.5 Contract;
2.6 Payment and Performance Bonds;
2.7 General Conditions;
2.8 Special Conditions;
2.9 Project Plans and Specifications;
2.10 Change Orders, if any;
2.11 Notice of Potential Award;
2.12 Notice to Proceed; and
2.13 The following: No other documents
3. Contractor’s Obligations. Contractor will perform all of the Work required for the Project, as specified in the Contract Documents. Contractor must provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including all necessary labor, materials, supplies, tools, equipment, transportation, onsite facilities, and utilities, unless otherwise specified in the Contract Documents. Contractor must use its best efforts to diligently prosecute and complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. Contractor agrees to carry out its work in compliance with any applicable local, State or Federal order regarding COVID-19.
4. Payment. As full and complete compensation for Contractor’s timely performance and completion of the Work in strict accordance with the terms and conditions of the Contract Documents, City will pay Contractor $1,738,875.00 (“Contract Price”) for all of Contractor’s direct and indirect costs to perform the Work, including all labor, materials, supplies, equipment, taxes, insurance, bonds and all overhead costs, in accordance with the payment provisions in the General Conditions.
5. Time for Completion. Contractor will fully complete the Work for the Project, meeting all requirements for Final Completion, within 110 calendar days from the commencement date given in the Notice to Proceed (“Contract Time”). By signing below, Contractor expressly waives any claim for delayed early completion.
6. Liquidated Damages. If Contractor fails to complete the Work within the Contract Time, City will assess liquidated damages in the amount of $1,500 per day for each day of Attachment A
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Orange Ave. Sidewalk Improvements CONTRACT
Proj. No. 2016-10.1 Page 21
unexcused delay in achieving Final Completion, and such liquidated damages may be deducted from City’s payments due or to become due to Contractor under this Contract.
7. Labor Code Compliance.
7.1 General. This Contract is subject to all applicable requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code, including requirements pertaining to wages, working hours and workers’ compensation insurance, as further specified in Article 9 of the General Conditions.
7.2 Prevailing Wages. This Project is subject to the prevailing wage requirements applicable to the locality in which the Work is to be performed for each craft, classification or type of worker needed to perform the Work, including employer payments for health and welfare, pension, vacation, apprenticeship and similar purposes. Copies of these prevailing rates are available online at http://www.dir.ca.gov/DLSR.
7.3 DIR Registration. City may not enter into the Contract with a bidder without proof that the bidder and its Subcontractors are registered with the California Department of Industrial Relations to perform public work pursuant to Labor Code § 1725.5, subject to limited legal exceptions.
8. Workers’ Compensation Certification. Pursuant to Labor Code § 1861, by signing this Contract, Contractor certifies as follows: “I am aware of the provisions of Labor Code § 3700 which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.”
9. Conflicts of Interest. Contractor, its employees, Subcontractors and agents, may not have, maintain or acquire a conflict of interest in relation to this Contract in violation of any City ordinance or requirement, or in violation of any California law, including Government Code § 1090 et seq., or the Political Reform Act, as set forth in Government Code § 81000 et seq. and its accompanying regulations. Any violation of this Section constitutes a material breach of the Contract.
10. Independent Contractor. Contractor is an independent contractor under this Contract and will have control of the Work and the means and methods by which it is performed. Contractor and its Subcontractors are not employees of City and are not entitled to participate in any health, retirement, or any other employee benefits from City.
11. Notice. Any notice, billing, or payment required by or pursuant to the Contract Documents must be made in writing, signed, dated and sent to the other party by personal delivery, U.S. Mail, a reliable overnight delivery service, or by email as a PDF file. Notice is deemed effective upon delivery, except that service by U.S. Mail is deemed effective on the second working day after deposit for delivery. Notice for each party must be given as follows:
City:
Cupertino Department of Public Works
10300 Torre Avenue
Cupertino, CA 95014
Attn: John Raaymakers
[email protected]
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Orange Ave. Sidewalk Improvements CONTRACT
Proj. No. 2016-10.1 Page 22
Copy to: Susan Michael
[email protected]
Contractor:
Name: Redgwick Construction Company
Address: 21 Hegenberger Ct.
City/State/Zip: Oakland, CA 94621
Phone: (510) 792-1727
Attn: Bob Rahebi
Email: [email protected]
Copy to: [email protected]
12. General Provisions.
12.1 Assignment and Successors. Contractor may not assign its rights or obligations under this Contract, in part or in whole, without City’s written consent. This Contract is binding on Contractor’s and City’s lawful heirs, successors and permitted assigns.
12.2 Third Party Beneficiaries. There are no intended third party beneficiaries to this Contract.
12.3 Governing Law and Venue. This Contract will be governed by California law and venue will be in the Santa Clara County Superior Court, and no other place.
Contractor waives any right it may have pursuant to Code of Civil Procedure § 394, to file a motion to transfer any action arising from or relating to this Contract to a venue outside of Santa Clara County, California.
12.4 Amendment. No amendment or modification of this Contract will be binding unless it is in a writing duly authorized and signed by the parties to this Contract.
12.5 Integration. This Contract and the Contract Documents incorporated herein, including authorized amendments or Change Orders thereto, constitute the final, complete, and exclusive terms of the agreement between City and Contractor.
12.6 Severability. If any provision of the Contract Documents is determined to be illegal, invalid, or unenforceable, in whole or in part, the remaining provisions of the Contract Documents will remain in full force and effect.
12.7 Iran Contracting Act. If the Contract Price exceeds $1,000,000, Contractor certifies, by signing below, that it is not identified on a list created under the Iran Contracting Act, Public Contract Code § 2200 et seq. (the “Act”), as a person engaging in investment activities in Iran, as defined in the Act, or is otherwise expressly exempt under the Act.
12.8 Authorization. Each individual signing below warrants that he or she is authorized to do so by the party that he or she represents, and that this Contract is legally binding on that party. If Contractor is a corporation, signatures from two officers of the corporation are required pursuant to California Corporation Code § 313. 351
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Orange Ave. Sidewalk Improvements CONTRACT
Proj. No. 2016-10.1 Page 23
The parties agree to this Contract as witnessed by the signatures below:
CITY: Approved as to form:
s/_______________________________ s/__________________________________ ________________________________ ___________________________________ Name, Title Name, Title
Date: ___________________________ Date: ______________________________ Attest:
s/_______________________________
_________________________________
Name, Title
Date: ___________________________
CONTRACTOR: Redgwick Construction Company
Business Name
s/_______________________________ Seal:
_________________________________
Name, Title
Date: ____________________________
Second Signature (See Section 12.8):
s/_______________________________
_________________________________
Name, Title
Date: ____________________________
___________________________________________________
Contractor’s California License Number(s) and Expiration Date(s)
END OF CONTRACT
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CITY OF CUPERTINO
Agenda Item
22-10789 Agenda Date: 5/19/2022
Agenda #: 14.
Subject: Consider authorizing a Seventh Amendment of Agreement 15-206 between the City of Cupertino and Professional Turf Management extending the contract for six months and resulting in $102,600 in maintenance related expenses for Fiscal Year 2022-2023 (Continued from May 17, 2022) Consider approving the Seventh Amendment of Agreement 15-206 between the City of Cupertino and Professional Turf Management, to extend the term of the agreement up to six months and resulting in $102,600 in maintenance related expenses for Fiscal Year 2022-2023 CITY OF CUPERTINO Page 1 of 1 Printed on 5/18/2022
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CITY COUNCIL STAFF REPORT
Meeting: May 19, 2022
Subject
Consider authorizing a Seventh Amendment of Agreement 15-206 between the City of Cupertino and Professional Turf Management extending the contract for six months and resulting in $102,600 in maintenance related expenses for Fiscal Year 2022-2023 Recommended Action
Consider approving the Seventh Amendment of Agreement 15-206 between the City of Cupertino and Professional Turf Management, to extend the term of the agreement up to six months and resulting in $102,600 in maintenance related expenses for Fiscal Year 2022-2023.
Background
The Professional Turf Management (PTM) agreement was authorized in December 2015 as a one-year agreement with four annual amendments to extend per the City’s discretion through June 2020. A Sixth Amendment was authorized in April 2021 due to the golf course feasibility study from the Fiscal Year (FY) 2020-21 City Work Program.
The golf course feasibility study was projected to conclude in fall 2021 and possibly impact the overall maintenance needs of the golf course, depending on the results and Council’s consideration and direction. Due to the unknown outcome of the study, the PTM golf maintenance contract was extended. The current agreement with PTM provides for golf course maintenance and soil testing. The agreement is set to expire on June 30, 2022.
Discussion
The golf course feasibility study is now projected to conclude by fall 2022. Staff is in the process of creating a Request For Proposal (RFP) for golf course maintenance. The RFP process will not be complete prior to the expiration of the current golf course maintenance contract.
The proposed Seventh Amendment will extend the existing agreement for up to six months, beginning July 1, 2022. The Seventh Amendment will retain the same provisions as the original agreement.
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PTM has worked closely with the City at Blackberry Farm Golf Course for over 10 years.
They are knowledgeable about the aging irrigation system and have maintained it as effectively as possible. The golf course resides in a unique creekside location that is home to year-round federally protected steelhead trout habitat, one of the few such habitats in Santa Clara County. PTM’s previous experience with the golf course provides the expertise necessary to appropriately manage golf course maintenance next to such a sensitive riparian habitat. By extending the agreement, the City retains a qualified and knowledgeable professional contractor to provide the required maintenance at the golf course while preparing for an RFP.
Sustainability Impact
No sustainability impact.
Fiscal Impact
This amendment would add up to six months to the contract which would cost up to $102,600 for FY 2022-23. This amount will be included as part of the Fiscal Year 2022-23 Final Budget process if the amendment is approved.
_____________________________________
Prepared by: Jenny Koverman, Recreation Supervisor
Reviewed by: Joanne Magrini, Director, Parks and Recreation Approved for Submission by: Dianne Thompson, Assistant City Manager Attachments:
A – Seventh Amendment for Blackberry Farm Golf Course Maintenance 355
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1 SEVENTH AMENDMENT TO AGREEMENT 15-206 BETWEEN
THE CITY OF CUPERTINO AND PROFESSIONAL TURF
MANAGEMENT FOR BLACKBERRY FARM GOLF COURSE
MAINTENANCE
This Seventh Amendment to Agreement 15-206 between the City of Cupertino and Professional Turf Management, for reference dated 5/17/2022, is by and between the CITY OF CUPERTINO, a municipal corporation (hereinafter "City") and Professional Turf Management, a California Corporation (“Contractor”) whose address is P.O. Box 700142, San Jose, Ca. 95170, and is made with reference to the following:
RECITALS:
A. On 12/3/2015, Agreement 15-206 (“Original Agreement”) was entered into by and between City and Contractor for Blackberry Farm Golf Course Maintenance and soil sample collection and testing.
B. On 6/22/2016, City and Contractor agreed to the First Amendment for Blackberry Farm Golf Course Maintenance and soil sample collection and testing.
C. On 6/14/2017, City and Contractor agreed to the Second Amendment for Blackberry Farm Golf Course Maintenance and soil sample collection and testing.
D. On 4/17/2018, City and Contractor agreed to the Third Amendment for Blackberry Farm Golf Course Maintenance and soil sample collection and testing.
E. On 5/16/2019, City and Contractor agreed to the Fourth Amendment for Blackberry Farm Golf Course Maintenance and soil sample collection and testing.
F. On 5/4/2020, City and Contractor agreed to the Fifth Amendment for Blackberry Farm Golf Course Maintenance and soil sample collection and testing.
G. On 4/29/2021, City and Contractor agreed to the Sixth Amendment for Blackberry Farm Golf Course Maintenance and soil sample collection and testing.
H. The Original Agreement and the First, Second, Third, Fourth, Fifth and Sixth Amendments are collectively referred to as the “Agreement” unless otherwise indicated.
I. City and Contractor desire to modify the Agreement on the terms and conditions set forth herein.
NOW, THEREFORE, it is mutually agreed by and between and undersigned parties as follows:
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3 EXPENDITURE DISTRIBUTION
1339305.1 PO #2016-398 560-63-616 700-702
Original $99,600.00
Amendment #1: $205,200.00
Amendment #2: $205,200.00
Amendment #3: $205,200.00
Amendment #4: $205,200.00
Amendment #5: $205,200.00
Amendment #6: $205,200.00
Amendment #7: $102,600.00
Total: $1,433,400
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EXHIBIT B-5
COMPENSATION
COMPENSATION
Payment for services to be performed in Fiscal Year 2022-23 From July 1, 2022 to December 31, 2022 shall be $17,000.00 per month for maintenance activities as described in Exhibit A, plus $100.00 per each soil sample and testing with a maximum Quantity of
6. Payment for services to be performed in Fiscal Year 2022-23 shall not exceed $102,600 as noted below.
Item Unit Qty Unit Price Total Cost
Blackberry Farm Month 6 $17,000.00 $102,000.00
Golf Course Maintenance
Soil Sampling Collection Each 6 $100.00 $600.00
TOTAL FEE for services, Fiscal Year 2022-23, Not to Exceed: $102,600.00
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CITY OF CUPERTINO
Agenda Item
22-10963 Agenda Date: 5/19/2022
Agenda #: 15.
Subject: Initial Study Session on Fiscal Year (FY) 2022-23 Proposed Budget (Continued from May 17, 2022)
Conduct Initial Study Session on Fiscal Year (FY) 2022-23 Proposed Budget and provide direction to staff
Presenter: Thomas Leung, Senior Management Analyst
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81 Table of Contents
Table of Contents
Introduction
City Organizational Chart
Directory of City Officials
Commissions and Committees
GFOA Distinguished Budget Presentation Award
CSMFO Operating Budget Excellence Award
CSMFO Innovation Award
Budget Message
Budget Message
Strategic Goals
Notable Accomplishments
New Initiatives
Budget Overview
Budget Guide
Our Mission
Elements of the Budget Document
Glossary of Budget Terminology
Commonly Used Acronyms
Revenues, Expenditures, and Fund Balance Table
Community Profile
History
Community Economic Profile
City Profile
Education
Programs and Applications
Community Statistics
Community and Recreation Services
Things To Do and See
Financial Policies
Annual Budget Process
Structure of City Finances
Fund Structure
FY 2022-23 Proposed Budget Table of Contents 1
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86 87
89 90
91 94
95 97
101
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111
125
128
129
131
137
163
165
172
174
177
179
181
183
185
187
189
191
193
195
Revenue Policies
Expenditure Policies
Capital Improvement Policy
Information Technology Replacement and Capitalization Policy Pension and Retirement Funding Policy
Long Term Financial Stability Policies
Committed, Unassigned Fund Balance, and Use of One Time Funds Policy Investment Policy
Community Funding Policy
Appropriations and Legal Debt Limit Margin
Financial Schedules
Financial Overview by Fund
Flow of Funds Chart (Sankey)
General Fund Contribution Schedule
Fund Balance Report
General Fund Summary
General Fund Revenues
General Fund Expenditures
General Fund Transfers
General Fund Fund Balance
All Funds Summary
General Fund Forecast
Council and Commissions
Department Overview
City Council
Community Funding
Sister Cities
Technology, Information & Communications Commission
Library Commission
Fine Arts Commission
Public Safety Commission
Bicycle and Pedestrian Commission
Parks and Recreation Commission
Teen Commission
Planning Commission
Housing Commission
FY 2022-23 Proposed Budget Table of Contents 2
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253
255
257
259
272
275
278
280
283
286
289
291
299
301
304
306
308
Sustainability Commission
Audit Committee
Administration
Department Overview
City Manager
Sustainability
Office of Communications
Multimedia
Public Access Support
Community Outreach and Neighborhood Watch
Office of Emergency Management
Economic Development
City Clerk
Duplicating and Mail Services
Elections
City Manager Contingency
City Attorney
Law Enforcement
Department Overview
Law Enforcement
Interoperability Project
Innovation and Technology
Department Overview
Innovation & Technology Administration
Video
Public Access Support
Applications
Infrastructure
GIS
Administrative Services
Department Overview
Administrative Services Administration
Accounting
Business Licenses
Purchasing
Budget
FY 2022-23 Proposed Budget Table of Contents 3
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348
350
352
355
357
359
361
363
365
374
376
379
382
384
386
388
390
392
394
396
Human Resources
Retiree Benefits
Insurance Administration
Workers Compensation Insurance
Short Term and Long Term Disability
Compensated Absences
Parks and Recreation
Department Overview
Recreation Administration
Library Services
Administration
Cultural Events
Facilities
Administration
Youth Teen Recreation
Senior Center
Teen Programs
Neighborhood Events
Park Facilities
Administration
Blackberry Farm Golf Course
Outdoor Recreation
Sports Center Operations
Community Development
Department Overview
Community Development Administration
Current Planning
Mid and Long Term Planning
Annexations
Economic Development
CDBG General Admin
CDBG Capital/Housing Projects
CDBG Public Service Grants
BMR Affordable Housing Fund
Human Service Grants
General Building
FY 2022-23 Proposed Budget Table of Contents 4
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436
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454
457
460
463
465
468
470
472
474
476
479
481
484
486
488
490
493
495
497
499
501
Building Plan Review
Building Code Enforcement
Muni Code Enforcement
Code Enforcement
Public Works
Department Overview
Public Works Administration
Resource Recovery
Non-Point Source
Storm Drain Fee
General Fund Subsidy
Storm Drain Maintenance
Plan Review
CIP Administration
Service Center Administration
McClellan Ranch Park
Memorial Park
BBF Ground Maintenance
School Site Maintenance
Neighborhood Parks
Sport Fields Jollyman, Creekside
Civic Center Maintenance
Storm Drain Maintenance
Sidewalk Curb and Gutter
Street Pavement Maintenance
Street Sign Marking
Street Lighting
Equipment Maintenance
Environmental Materials
Trail Maintenance
Overpasses and Medians
Street Tree Maintenance
Sheriff Work Program
BBF Golf Maintenance
City Hall Maintenance
Library Maintenance
FY 2022-23 Proposed Budget Table of Contents 5
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521
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532
534
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538
541
543
545
547
549
551
555
557
559
561
563
Service Center Maintenance
Quinlan Community Center Maintenance
Senior Center Maintenance
McClellan Ranch Maintenance
Monta Vista Community Center Maintenance
Wilson Park Maintenance
Portal Park Maintenance
Sports Center Maintenance
Creekside Park Maintenance
Community Hall Maintenance
Teen Center Maintenance
Park Bathrooms Maintenance
Blackberry Farm Maintenance
Franco Traffic Operations Center
City Hall Annex
Traffic Engineering
Traffic Signal Maintenance
Safe Routes 2 School
Minor Storm Drain Improvement
Fixed Assets Acquisition
Non-Departmental
Department Overview
General Fund Transfers Out
Tree Fund Transfers Out
Debt Service Transfers Out
Capital Reserve Transfers Out
Facility Lease Debt Service
FY 2022-23 Proposed Budget Table of Contents 6
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Introduction
FY 2022-23 Proposed Budget Introduction 7
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FY 2022-23 Proposed Budget Introduction 8
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City Organizational Chart
FY 2022-23 Proposed Budget Introduction 9
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Directory of City Officials
City Council
Darcy Paul Liang Chao
Mayor Vice Mayor
Kitty Moore Hung Wei Jon Willey
Council Member Council Member Council Member
Directory of City Officials
Jim Throop – City Manager
Dianne Thompson – Assistant City Manager
Christopher Jensen – City Attorney
Kristina Alfaro – Director of Administrative Services
Ben Fu – Director of Community Development
Matt Morley – Director of Public Works
Joanne Magrini – Director of Parks and Recreation
Bill Mitchell – Chief Technology Officer
FY 2022-23 Proposed Budget Introduction 10
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Commissions and Committees
AUDIT COMMITTEE
Angela Chen
Yan (Sophie) Song
Darcy Paul
Kitty Moore
Laura Hammer
BICYCLE PEDESTRIAN
COMMISSION
Gerhard Eschelbeck
Erik Lindskog
Jack Carter
Ilango Ganga
DESIGN REVIEW COMMITTEE
Muni Madhdhipatla
Sanjiv Kapil
R "Ray" Wang
ENVIRONMENTAL REVIEW
COMMITTEE
Kitty Moore
R "Ray" Wang
Dianne Thompson
Darcy Paul
Ben Fu
Chad Mosley
ECONOMIC DEVELOPMENT
COMMITTEE
Darcy Paul
Kevin McClelland
Hung Wei
Mike Rohde
Rod Diridon Jr.
Alan Takahashi
Roslyn Donald
Angela Tsui
Ben Fu
Anjali Kausar
Roger Lee
FINE ARTS COMMISSION
Carol Maa
Janki Chokshi
Satish Tare
Esha Rao
Sudha Kasamsetty
HOUSING COMMISSION
Govind Tatachari
Tessa Parish
Sue Bose
Connie Cunningham
Angan Das
LEGISLATIVE REVIEW
COMMITTEE
Liang Chao
Kitty Moore
LIBRARY COMMISSION
Archana Panda
Liyan Zhao
Sheela Sreekanth
Qin Pan
Rahul Vasanth
PARKS AND RECREATION
COMMISSION
Carol Stanek
Xiangchen "Minna" Xu
Gopal Kumarappan
Seema Swamy
Sashikala Begur
PLANNING COMMISSION
R "Ray" Wang
Vikram Saxena
Sanjiv Kapil
Muni Madhdhipatla
Steven Scharf
PUBLIC SAFETY COMMISSION
Eric Shan
Hymanand Nellore
Lakshminarasimha Ankireddipally
Tiffany Wang
Bobby Toda
SUSTAINABILITY
COMMISSION
Anna Weber
Sonali Padgaonkar
Meera Ramanathan
Steve Poon
Vignesh Swaminathan
TEEN COMMISSION
Rachael Ding
Geethikaa Tarra
Andrew Qin
Maple Leung
Zehra Naqvi
Dhruti Halambi
Elspeth Luu
Alex Zhang
Adhya Kasamsetty
TECHNOLOGY, INFORMATION
& COMMUNICATIONS
COMMISSION
Eliza Du
Mukesh Garg
Naidu Bollineni
Rajaram Soundararajan
Prabir Mohanty
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GFOA Distinguished Budget Presentation Award
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CSMFO Operating Budget Excellence Award
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CSMFO Innovation Award
CSMFO awarded the City of Cupertino the 2022 Innovation Award for the City’s Resident Tax Calculator and Budget Forecast Tool. This is the first time that the City of Cupertino has received this award and highlights the City’s commitment to innovation despite unique challenges presented by the pandemic over the past year.
They are available at cupertino.org/interactive-budget-tools.
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Budget Message
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Budget Message
April 29, 2022
To the Residents of Cupertino, Honorable Mayor, and Members of the City Council:
Albert Einstein said, “Life is like riding a bicycle, to keep your balance, you must keep moving.” As the City emerges from the COVID-19 pandemic, we are defining our future, and the opportunities and challenges the future presents. From how we offer services to the development of our financial and human resources and the needs of residents, the City is not in the same place as it was pre-pandemic. In Fiscal Year (FY) 2021-2022, we saw increases in expenditures aNer experiencing a decrease across various categories due to the pandemic. We saw transient occupancy taxes, the hardest hit of our revenue sources, rebound. We transitioned from online-only to hybrid service models and we saw the revitalization of in-person events. The City has been impacted by a wave of retirements as the baby boomer generation leaves the workforce and the Great Resignation (a pandemic by-product of mass resignations as people consider different career paths). As a result, we have seen a significant increase in retirees and turnover in FY 2020-2021, with normalization in FY 2021-2022. However, our staff has been resilient in overcoming challenges and implementing new and innovative solutions, while managing new and limited staffing, as well as continuing vacancies.
The positive news is that the City is on a solid financial footing to weather any of the challenges ahead. …
I am pleased to present the City Council with a balanced budget for FY 2022-2023. The proposed budget is recommended at $125,461,857 and is funded by $128,764,630 in revenue, supporting a workforce of over 200 employees. Consistent with last year, and to allow more discussion, the Capital Improvement Program (CIP), Council Work Program, and Community Funding requests are not included in the proposed budget. The costs associated with these programs will be added as part of the final budget, aNer Council study sessions on these programs. The General Fund, the City’s largest tax-supported fund, is recommended at $92,962,965 and is funded by $93,661,388 in revenue. This budget reflects the invaluable input provided by your Council, Department Heads, and other City stakeholders.
The City has historically been fiscally prudent in budgeting both expenditures and revenues. This has been part of a deliberate strategy to build up fund balance and to provide the City with time to mitigate the impacts of the pandemic. The City continues to have a strong revenue tax base which enables us to provide public safety and general government services to support our community. However, since the City has limited resources, it is important that we balance the many needs of the community so that the City can continue to remain in a strong financial position.
For Cupertino, the top three revenue sources continue to be Sales, Property, and Transient Occupancy taxes (TOT, or Hotel Taxes). Sales and property taxes continue to do well post-pandemic, and we have seen TOT rebound to around 37% of pre-pandemic levels (up over 57% since shelter-in-place restrictions were implemented). While sales tax was anticipated to decrease during the pandemic, it increased significantly due to positive impacts from online sales. We continue to closely monitor the situation as we believe this was a onetime occurrence due to the pandemic. Overall, most sales tax sources have recovered to pre-pandemic levels.
The City is currently in the midst of a sales tax audit by the California Department of Tax and Fee Administration (CDTFA). The impact of this audit is unknown but it has the potential to have a significant impact on the City’s sales tax revenue. Once more information is known, staff will provide updates to City FY 2022-23 Proposed Budget Budget Message 17
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Council. The proposed budget does take into consideration a potential reduction in sales tax revenue, as the City does take a conservative stance in financial matters.
Additionally, a major impact of the pandemic has been on the City’s ability to retain and recruit employees. As mentioned previously, the City experienced a spike in retirements and resignations, compounded by challenges in recruiting. For certain positions, we had to conduct multiple recruitments before hiring a successful candidate, or we had to extend recruitment timelines. As a result, the time required to fill vacancies aNer employees leave city service has grown. As the City transitions from a small to a mid-size City, the need for additional positions will continue as service expectations expand. This year’s budget recommends funding 12 new positions in various departments. We are also currently forecasting the need for an additional 8 positions in the near future, once the impact of the sales tax audit is known. To date, the City has been successful in mitigating these impacts and has been able to complete projects on time. However, if, current staffing trends continue, we may experience major impacts on service delivery to our residents.
A growing area of concern for the City is our aging infrastructure. The need to address our infrastructure will have a significant impact on the City’s budget. The City will need to decide how and when to update, remodel, or rebuild existing infrastructure while balancing safety concerns with new infrastructure projects and ongoing operations. Infrastructure needs are discussed in the City’s Capital Improvement Program.
As the City moves forward, we will begin to strategically use reserves to further strengthen the City’s fiscal position in the short and long-term. As described in the budget-balancing strategies in the financial schedules portion of the budget, we are recommending use of the Section 115 Other Post-Employment Benefits (OPEB) Trust to fund the costs of retiree health benefits. In addition, we continue to monitor our Section 115 Pension Trust (a specialized fund that may only be used to pay for retirement costs) and may recommend the use of this fund in the future for pension-related costs. Lastly, City Council approved mid-year adjustments of $27 million in General Fund unassigned fund balance as follows:
$10 million transfer to Capital Reserve;
$5 million increase to General Fund Economic Uncertainty Reserve; $10 million contribution to a new General Fund Capital Projects Reserve; and $2 million contribution to Section 115 Pension Trust.
Despite challenges and uncertainty in the State, Nation, and Globally, the City’s fiscal outlook remains strong.
Our City has a strong financial foundation to build upon for the successful future of Cupertino. And it will be more incredible than any of us can possibly imagine.
Respectfully Submitted,
Jim Throop
City Manager
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Strategic Goals
On February 18, 2020, City Council adopted the following goals to provide a framework for the City’s priorities and City Work Program:
Public Engagement and Transparency
Creating and maintaining key conversations and interactions with the Cupertino Community.
Sustainability and Fiscal Strategy
Continuing Cupertino's commitment to building a sustainable and resilient community for future generations.
Housing
Contributing meaningfully and in a balanced manner to the housing inventory in support of our community needs, including affordable housing (from extremely low-income to moderate-income level housing) and addressing homelessness.
Transportation
Providing access to an efficient, safe multi-modal transportation system for our community, and advocating for effective, equitable mass transit in the greater region.
Improving Traffic Flow and Alleviating Congestion
Quality of Life
Furthering the health and well-being of all Cupertino community members.
Air Quality
Public Safety
Recreation
Access to Goods and Services
While these are intended as multi-year goals, they are reviewed annually by the City Council. The Council may adopt the same goals or revised goals as the Council sees fit.
The strategic planning process and City Council goal-seWing are paramount as they drive the City's annual Work Program. The City has created an online dashboard to show the status and performance of the City Work Program in real-time (gis.cupertino.org/webmap/CityWorkProgram/). City Work Program items with budgetary impacts can be found in the respective program budgets under Special Projects. The budgets of some City Work Program items from previous fiscal years may be carried forward into FY 2022-23.
The City Work Program will be presented to City Council at a separate study session and is not included in the Proposed Budget. The City Work Program will be included in the Adopted Budget.
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Notable Accomplishments
Administration Department
ADA Webinar – In November 2021, Economic Development partnered with the Silicon Valley Economic Development Alliance (SVEDA) to host a webinar on Americans with Disabilities Act (ADA) laws and compliance for small businesses. The webinar equipped small businesses on how to comply with ADA laws to avoid costly litigation and penalties, drawing 150 aWendees. Close to two dozen Cupertino businesses were able to hear directly from experts, get their questions answered, and connect with City employees directly.
Small Business Saturday – This event empowered local businesses, connected them with the community, and aWracted more visitors to the shopping center. In addition to creating a webpage, a first-ever partnership between the City, Cupertino Library, and the Chamber of Commerce was formed. Representatives from partner organizations met with local businesses and greeted visitors. Community members were able to learn about the benefits of supporting small businesses, local promotions, checking out books, opening a new library card, and the City's Climate Action Plan.
COVID-19 Response – Over the past 12 months, the Office of Emergency Management responded to the COVID19 pandemic, guiding City departments through two years of navigating the evolving best practices and health orders.
2021 Virtual Earth Day – The virtual festival included an entire day of live and recorded content which can be viewed anytime on Cupertino’s YouTube channel. The live stream was hosted by volunteers from Cupertino’s youth environmental organizations. A Tree Scavenger Hunt and liWer clean-up event were created to keep the community engaged in a socially distanced way. The live-streamed festival generated 1,500 impressions online, including viewers as far away as India, and the recordings have hundreds of views on the City’s YouTube channel.
Drought Response Coordination – With a combination of strategies and regular feedback based on the consumption data, the City achieved a 15% reduction in municipal water use during the summer of 2021. As the region expects a third year of drought, these measures will continue to be utilized.
Climate Action Plan 2.0 – To update the City Climate Action Plan, a multi-pronged engagement strategy was utilized to include Cupertino residents, businesses, organizations, and stakeholders. The objectives was to gather community perspectives, create a framework for community action, educate, empower, and energize the community, and strengthen relationships within the City. Six virtual events were held throughout 2021, two surveys were conducted, two City Council study sessions, and the topic was discussed at each Sustainability Commission meeting throughout the year. 135 people participated in workshops, 161 responses were collected from surveys, and several hundred people were directed to the project website from in-person community tabling events such as at farmer’s markets and the Rotary’s Fall Festival. All the public feedback is available to review at www.Cupertino.org/ClimateAction
Administrative Services Department
Virtual Benefits Fair – Enhanced process with City staff and vendors as well as continued with an online open enrollment process.
HR Hub and Training Management Application – Continued collaboration with I&T to enhance and develop the City’s intranet, including digitizing forms, enhancing employee accessibility to HR tools and resources, and centralizing and maintaining HR information (MOUs, Policies & Procedures, COVID Information, etc.) FY 2022-23 Proposed Budget Budget Message 20
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BEST Training – Transitioned to online registration and training platform. Offered a semester-based program with a variety of training programs to assist employees with their professional growth, health, and wellness as well as retirement and financial planning.
COVID-19 – Continued to provide employee support across all City Departments through the COVID website, City Town Hall, and Department meetings. Researched, analyzed, and implemented Federal, State, and local rules and regulations such as leave programs, contract tracing, creation of new and revised OSHA policies, and related trainings.
Diversity, Equity, and Inclusion (DEI) – Offered staff 5 DEI training classes as part of the City’s BEST program to increase cultural awareness, knowledge, and communication.
Recruitment and Retention – Responded to a large increase in separations from previous FY20 (12) to FY21 (30) which translates to a FY21 16.3% turnover rate from a FY20 of 6.4%. As a result, this increased the number of recruitments conducted from FY20 (19) to FY21 (43).
Benefit Administration – Processed triple the number of employee separations due to a large increase in employee onboarding and oXoarding. From 7/1/2019 – 6/30/2020, there were 12 Full Time (FT) employee separations and 19 FT new hires. From 7/1/2020 – 6/30/2021, there were 32 FT (includes 2 councilmembers) employee separations and 18 (includes 2 councilmembers) FT new hires.
Internal Audit – The City’s internal auditor, Moss Adams, developed an internal audit work plan to guide activities for FY 2021-22. The Audit CommiWee and City Council approved the FY 2021-22 internal audit work plan, which included the following projects:
Procurement Operational Review
Policy Inventory and Plan
Capital Program Effectiveness Study
Fraud, Waste, and Abuse Program
The projects are expected to be completed by the end of FY 2021-22.
CSMFO Innovation Award – CSMFO awarded the City of Cupertino the 2022 Innovation Award for the City’s Resident Tax Calculator and Budget Forecast Tool. This is the first time that the City of Cupertino has received this award and highlights the City’s commitment to innovation despite unique challenges presented by the pandemic over the past year. They are available at cupertino.org/interactive-budget-tools Community Development Department
Update the Housing Element of the General Plan and concurrent rezoning – Ongoing updates to the Housing Element goals, policies, and strategies to address housing needs, constraints, both governmental and nongovernmental, and identify Priority Housing sites to accommodate the city’s Regional Housing Needs Allocation, as required by state law. Concurrent rezoning of the Priority Housing sites to ensure that sites are appropriately rezoned to allow for planned growth/capacity.
Homeless Jobs Program – In partnership with the West Valley Community Services, created a pilot Homeless Jobs Program to assist two individuals with obtaining full-time employment. In addition to employment, they received job training, housing support, financial coaching, and case management services.
City Plan to End Homelessness – DraNed the City Plan to End Homelessness to address the needs of the unhoused residents of Cupertino as identified in the Santa Clara County Community Plan to End Homelessness. The City Plan will help direct the decisions that will be made about funding, program, and needs. Over 150 people attended the City’s Community Workshop in support of this effort.
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ProjectDox Expansion and Upgrade – Improved soNware (for both staff and customers) in the way permits are processed. Additionally, ProjectDox will be migrated to a cloud-based application allowing for enhanced business continuity and disaster recovery.
Innovation & Technology Department
IT Strategic Plan – Completion of the three-year Strategic Plan (Plan). The Plan outlines and prioritizes I&T projects and associated costs for the next three years resulting in enhanced efficiencies and increased transparency in each work product.
Adaptive Traffic Signaling – Completed the Adaptive Traffic Signaling (ATS) project. ATS adjusts the timing of the City’s green light cycle to match current traffic conditions. Mitigating traffic congestion is a high priority for the City and ATS will measure how effective this technology is in moving Cupertino traffic.
Multimodal Traffic technologies – Provided additional tools to Planning and Public Works to beWer measure impacts and plan for future projects. In partnership with Public Works, IT procured technology(s), selected locations, implemented and tested multimodal count sensors.
Multi-Factor Authentication – Implemented multi-factor authentication (MFA) for all City staff to enhance security. This ensures that the City follows industry best practices and reduces security exposure risk in an ever-evolving online workspace.
Interactive Projector System – Utilized augmented reality (AR) to provide public engagement with visitors. This allows for enhanced consumption of provided media notices as well as interactive AR engagement.
Wireless Network + Internet Park Expansion – Expanded WiFi network services to selected parks (Wilson, Portal, and Creekside), including connectivity at those sites to allow staff access to City network resources for future services and events. Enhancement of services at current facilities with a more reliable fiber-optic network connection. This includes connections from City Hall to Monte Vista Recreation Center & Park, McClellan Ranch, Blackberry Farm, and the golf course at Blackberry Farm.
Developed Policies and Procedures – Developed Cybersecurity Incident Response, IT Governance, Enterprise Architecture, and Data Classification and Standards policies and procedures to protect the integrity of the City’s information and databases.
Telematics – Implemented the Telematics solution, GeoTab, for all City Vehicles - Enabled the IT Department & Fleet Division to analyze and evaluate: 1) vehicle utilization, 2) vehicle performance data, 3) driver safety and behaviors and 4) fuel efficiency to recommend cost-saving, operational efficiency, and safety measures.
Laserfiche Roadmap – Implemented the 2nd-year out of the three-year Enterprise Content Management roadmap.
Completed the file plan and restructuring for all Public Work Divisions, Planning, Housing, & Code Enforcement, Parks and Recreation, Sustainability, and Human Resources. Ongoing scanning of historic records, as well as building out the internal web-link portal and Division specific training.
Business Process Automation – Continued conversion of existing paper/static forms to digital/dynamic processes.
Workflow and business method was added to the digital forms to provide a true paperless environment.
Digitized over 25 workflows.
Disaster Response – Developed and tested the Quick Capture app, Building Damage Assessment survey, and the Situational Awareness app along with the corresponding dashboards.
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CodeHub Implementation – Created a modern-day zoning code all in one platform which seamlessly integrates zoning code text into 3D maps that show zoned development potential, providing a self-service public portal reducing front counter citizen inquiries by 10x.
Drone Program – Developed Cupertino’s Drone Policy and Procedures and established a drone training program.
Moved to Enterprise GIS – Enhanced security and authentication options through web-tier authentication, Active Directory, and more.
Teen Commission Online Application – Implemented an online Teen Commission applicant intake solution enabling greater productivity and collaboration. Aspiring teen commission applicants can apply online and get their parents' digital signatures via the online application portal.
Zendesk Customer Service Solution for Community Development – Implemented a Zendesk customer service solution for Community Development staff to facilitate the management of their customer services requests and communications enabling greater productivity and collaboration.
Business License Move to Accela – Implemented Business License module in Accela Land Management System for smart and accessible infrastructure-related business licenses enabling greater productivity and collaboration.
Customer In-person Appointment Calendars – Implemented MS Appointments booking calendars where external customers can make in-person appointments during Covid facility closures. Applications staff configured the appointment booking sites for Building, Planning, Public Works, Finance, and City Clerk staff.
Parks & Recreation ActiveNet Dashboards – Created dashboards that pull data from the ActiveNet system to give managers business intelligence on their daily operations. These dashboards provide various program statistics, membership details, and other related datasets to help the management and staff get business overviews and make relevant decisions.
Parks & Recreation Department
Continued Services Through COVID – Continued to offer services to community members, focusing on the safety of participants, and following the rules and regulations set by the county, including contact tracing guidelines.
At the beginning of the pandemic, the Cupertino Sports Center offered usage of the outdoor tennis courts and several tennis programs and camps. In addition, the Department was able to continue these services through the scheduled closure due to the Seismic Retrofit project for the building. In the summer of 2021, the building had reopened to welcome members back into the gym. Equipment had been reorganized to allow for more space between users and sanitation stations were set up for cleaning equipment.
The Quinlan Community Center front office reopened in July of 2021, to provide in-person customer service support for those who wished to register for classes or camps, or to reserve City facilities and picnic areas for rentals.
The Cupertino Senior Center continued to engage senior members through the monthly production of The 50+ Scene, outdoor 50+ sports, virtual travel, and remote classes. The building partially reopened in August of 2021, with some in-person programs and classes coming back to the center. Through a phased reopening process some senior socials have restarted, including table tennis, card playing, Bingo, and more. As of March, luncheons, in-person lectures, and day trips have returned and in May, the center is planning to be open five days a week. For a large portion of the pandemic, the building was also a dedicated COVID testing site, offering appointments twice a month.
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Blackberry Farm reopened for the 2021 season with a handful of modifications. The pools were available for use through a reservation system to control crowds and allow time for cleaning throughout the day. This new system was welcomed by swimmers and staff received many compliments about how safe guests felt while using the pool facility. The picnic sites were also available by reservation and guests were excited to gather outdoors with friends and family again. Additionally, participants of all ages enjoyed swim lessons taught in the Blackberry Farm pools. Private, semi-private, and parent-child classes were offered, however, beginner lessons for adults were the most popular classes.
Even aNer the stay-at-home order was liNed, the popularity of the Blackberry Farm Golf Course continued into FY 2021-2022. To date, 30,628 rounds have been played and $460,968 in revenue has come in from green fees, rentals, and pro shop merchandise.
Collaboration with Capital Improvement Program (CIP) - Partnered with Public Works on outreach efforts, which included creating surveys for community members, mailing postcards to residents, presenting projectS to applicable Commissions, and co-hosting public meetings to gather feedback and public input. Ongoing support with outreach efforts for park and recreation facility-related projects.
Field Use Policy – Adopted policy that switched to an hourly fee structure and added two additional Sunday uses for regular permiWing groups. Since adoption, the Recreation Department has been able to beWer track scheduled use and share it with the public on the City website. In addition, four new Youth Sports Organizations have become regular permitting groups.
Strategic Plan - Completed the first edition of a strategic plan that addresses the immediate and short-term opportunities for enhancement identified in the Parks and Recreation System Master Plan. The Strategic Plan includes two formats that outline existing and planned progress toward the implementation of opportunities identified in the Master Plan. The first format organizes implementation efforts by which community goal they address, and the second organizes what enhancements are being implemented by park site.
Summer Events – Revitalized several popular events, including the Summer Concerts, Movies in the Park, and Shakespeare in the Park. For the movie nights, more than 200 people aWended each night, and many positive comments were received about the first movies in the park since 2019.
Teen Programming/Pizza and Politics – Continued support for Cupertino teen programs. The Cupertino Youth Activity Board revitalized the Bobateeno event, the Cupertino Café, and new initiatives. Ongoing socialization opportunities that provide youth with mental health and tutoring resources.
Dog Off Leash Area (DOLA) - Established an ongoing DOLA program at Jollyman Park providing residents opportunities for engagement with their pets.
Gymnastics – Promoted physical, social, and cognitive development in children 1 to 5 years old through Bay Aerials at Monta Vista Recreation Center. Since classes began, 199 participants have registered, 86% of whom are residents.
Public Works Department
10 consecutive Tree City USA Recognition – The Tree City USA program provides communities with a four-step framework to maintain and grow their tree cover. It also gives them an avenue to celebrate their work, showing residents, visitors, and the entire country that they’re commiWed to the mission of environmental change.
Replaced 115 fluted street light poles to provide enhanced lighting, power, and communication services to residents as well as sustainable infrastructure for the City.
Prepared facilities for employees returning to work, including completing repairs and air balancing to th
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the ventilation system at City Hall.
Provided employee information on disinfecting schedules, placing Disinfecting Stations throughout City facilities, and provided a map of station locations for The Hub.
Completed a portion of feminine sanitary product dispensers at various City facilities. The remaining dispensers are scheduled to be installed in Spring 2022.
Completed the purchase of new leaf blowers to comply with Cupertino’s sound ordinance.
Initiated the grounds division irrigation controller replacement project anticipated completion by end of FY22.
Partnered with IT on more efficient documentation of backflow device testing and repairs in Cityworks.
Initiated the first phase of park amenities project - The installation of hydration stations throughout the parks.
Received and reviewed applications for 100 development projects (resulting in 161 submiWal reviews) and issued 217 encroachment permits between July 1, 2021 and December 31, 2021 (the remainder of FY 21-22 is still in progress).
Passed a local enforceable ordinance and began implementation of Senate Bill 1383 requirements for diversion of organics, including creating a new position and hiring an Environmental Programs Assistant.
Implemented Green Halo construction and demolition debris tracking soNware for use by construction contractors.
Arranged installation of 77 new adjustable retractable screens to keep trash out of our creeks.
Arranged for 7-day-per-week access to free compost at mulch for Cupertino residents at the Sunnyvale SMaRT Station.
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New Initiatives
Administration Department
Economic Development Strategy Update – Prepare to update the City’s Economic Development strategy. The last economic development strategy was completed in 2016. Staff is in the process of gathering updated local and regional data and trends to identify the strengths and gaps of the local economy, particularly as we move into the recovery phase of the pandemic.
Emergency Management Capacity Building – Focus on building response capability in the following ways:
Building more resilient communities through re-imagined volunteer programs, including the Block Leader program, with new engagement led by a dedicated full-time staff member.
Implementing a multi-year training and exercise program, consisting of regular training for City staff and volunteers as well as exercises with partner agencies and jurisdictions.
Developing new emergency operational annexes to guide the City’s response to specific hazards including earthquakes and wildfires.
Electrification Study – Work with cross-sector partners and experts to conduct public outreach and develop a specific strategy and policy options to achieve carbon-free buildings through electrification while navigating the economic and equity concerns that were raised during the public engagement process.
Administrative Services Department
ERP Need Analysis (Phase I) and RFP Development and Vendor Selection (Phase II) – Selecting a new enterprise resource planning (ERP) system. Having implemented and operated Tyler's New World System since January 2015, staff are aware of the importance of remaining up to date and ensuring the system that allows us to provide excellent services to the public is functioning optimally.
Fee Study and Cost Allocation Study – The studies will analyze the City’s fees and services to determine costs that can be allocated between City departments and costs that can be recovered through fees charged to the public.
These studies are conducted approximately every seven years.
Community Development Department
Development standards for ministerial subdivision and development of single-family zoned properties under SB-9 – Present a regular ordinance that addresses development standards for ministerial subdivision and development of single-family zoned properties to the Planning Commission and City Council in late Spring/early Summer.
Adopt environmental protection standard conditions of approval (adopt objective standards) – Prepare and present a new Chapter with regulations on implementing environmental protection standards for all projects, whether ministerial or discretionary.
Innovation & Technology Department
Climate Monitoring and Noise Measurement extension – Install four air quality sensors that will be placed close to the quarries to monitor real-time air quality data 24/7 365 days a year. Together these solutions provide the Sustainability division with a good representation of air quality data for Cupertino – an important component to the City’s Climate Action Plan.
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Cupertino Room Lectern Upgrade project – Upgrade the audiovisual system in the Cupertino Room to allow for better connection as well as updated infrastructure.
Social Room Audio Upgrade project – Upgrade audio system at the Quinlan Center Social Room to allow and support wireless/bluetooth infrastructure.
Sports Center Audio system upgrade – Upgrade audio system in the Cupertino Sports Center to beWer facilitate Sports Center programs and classes such as Zumba, Pilates, cardio workout, etc. where mixed amplification of music and instructor microphone audio is an important feature.
Video Capture Camera Expansion – Expand video capture to public areas within City facilities by adding or replacing cameras in areas such as the lobby, entry, and exit points. Cameras will also be placed around Blackberry Farm, specifically around high-risk areas such as the pool to provide enhanced security to City residents.
City Hall Enterprise Server & Storage Tech Refresh – Replace the current server environment that houses the City’s Financial ERP and Land Management business applications with a Cloud-based solution known as Infrastructure as a Service (IaaS). IaaS provides a secure, scalable solution that meets the IT strategic needs of the City.
Supplemental Wi-Fi Expansion in Public Areas – Continued expansion of the City’s Internet services to three additional City parks. Members of the public will be able to access WiFi internet services at these parks and City staff working at these parks will be able to have a secure seamless connection to the City network.
Proactive Managed Risk and Security Monitoring – Respond to active threats through proactive monitoring and management tools that scan, manage and resolve security vulnerabilities.
Computer-Aided Dispatch (CAD) and Records Management System (RMS) WAN Link –Ensure the City’s EOC has all the technical tools and capabilities to allow staff to make informed decisions based on situational awareness.
Secure telecommunications link from the County to City Hall through Public Safety Computer-aided dispatch and records management system (CAD/RMS) access from the County.
Dataverse Architecture – Develop a common data warehouse that will integrate with Cupertino’s enterprise applications to ensure data security, integrity, and normalization. Dataverse allows data to be integrated from multiple sources into a single store, which can then be used to quickly develop applications, dashboards, automated business processes, and more.
AR McClellan – Bring the Cupertino native wildlife to life in a fun interactive Augmented Reality (AR) environment for the visitors, classes, and tours at McClellan Ranch Preserve.
Laserfiche Roadmap – Year three of the Laserfiche Roadmap. Complete the file plan and restructuring for all Divisions. Ensure all scanning of historic records is underway, as well as build out the internal web-link portal and conduct Division specific training.
Capital Improvement Plan (CIP) Management System– Implement a CIP management system that will streamline how CIP projects are managed, bring consistency to CIP workflows and reporting, combine CIP and related financial data in one place, as well as provide an external portal for contractors and developers to upload CIP submittals and invoices in one consistent, reliable, and trackable platform.
Quinlan Touch Screen – Replace the existing static display, that staff post 24” poster paper to of the calendar of events, building layout, and room booking info siWing in the Quinlan lobby now. The replacement would be a state-of-the-art interactive display that allows customers to navigate through all that P&R has to offer, e.g., classes, facilities, parks, events, and more.
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Business Process Automation – Moving forward with the onboarding in SimpliGov, a system that has proven results, we will be able to automate any mundane process quickly and efficiently, drag-and-drop form builder, import existing forms, build new forms, embed conditional logic, use multiple form field types, integrate esignatures and more. We’ll be able to assemble even complex workflows with supercharged efficiency. The standardized platform form components and workflows will ensure consistency in filings, routings, revisions, approvals, archiving, and more.
Drone Program – Incorporate drone operations into Emergency Operations Plan and work with City departments to find efficiencies and benefits to using drones for routine workflows – this will have the added bonus of keeping the drone flying and image processing stills sharp for our certified staff.
Disaster assessment – Obtain a tool that can capture high-resolution imagery quickly to ascertain the damage, prioritize response and communicate damage visually with EOC and disaster service workers.
Image capture for before/aNer analysis. This is useful for PW and P&R projects in demonstrating work progress and end results. Images could be quickly uploaded to the City’s website and provided to the Communications Division with video and photo acquisition for City branding and marketing.
Coupled with Pix4D (another request) capture 3D imagery of a specific building or business area in Cupertino to understand the impact of new development or future growth.
Test Pilot - Determine the health of trees from a different vantage point.
Test Pilot - Building Roof inspections
ERP Phase I: Need Analysis – External consultant will conduct an ERP Need Analysis and gap analysis in terms of business needs and functionality as a significant issue with the current system is the lack of security logs required for auditing.
ERP Phase II (RFP Development and Vendor Selection)– Work with the contractor for RFP development detailing all business and functional requirements and specifications that will come out to need analysis and meetings/surveys with various stakeholders. ANer RFP response the final vendor selection meetings and other related processes will also be part of this project.
ACA Guide and Wrapper – Enhance user interface and provide seamless navigation through a new guide and wrapper of the City’s Land Management System’s Accela Citizen Access. The portals site has high traffic for users seeking the permit counter and business license services and user-friendly interface and navigation will help the city to provide its core services to our customers in an efficient way.
Consolidated Code Enforcement Services – Consolidate code’s operations under the Accela Land Management system and Cupertino 311. The project will automate the code enforcement business process under one enterprise Land use management system. Working with one system creates a more efficient, trusted (which data is correct) outcome. Additionally, custom reports become an easier task due to one application – one database. Finally, code complaints and service requests are routed from Cupertino 311 system for the code enforcement officers.
Climate Action Plan soEware – Develop, in collaboration with Sustainability, Climate change and adopt our City to consider the wide range of hazards that a changing climate poses to public policy and public health.
Resource Mapping SoEware – Implement the Startup Space platform to provide ecosystem mapping between resource providers and small and medium-size businesses. Provide access to government, public, and privately sponsored resources for underrepresented and minority-owned small business owners.
Accela Roadmap – Develop strategic initiatives for achieving the maximum potential from the use of Accela platform pertaining to both its back-office systems and its public portal for Cupertino residents and external stakeholders.
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ActiveNet Roadmap – Develop strategic initiatives for achieving the maximum potential from the use of Accela platform pertaining to both its back-office systems and its public portal for Cupertino residents.
City Website Redesign – Work with various departments and divisions to redesign the City of Cupertino website (cupertino.org). This project will involve building new wireframes, content audit, usability analysis, tracking current traffic patterns, and evaluating ADA compliance of city webpages.
Parks & Recreation Department
Enable Additional DOLA Locations – Standardize the process to create DOLA trial programs, with no more than two trials running at a time. Two new trials should start as soon as feasible, and the new trial should last at least 6 months unless the trial is adjacent to a field or playground. Respond to and evaluate community-driven DOLA proposals to implement additional DOLAs throughout the City.
Recruit for the 2023-2025 Poet Laureate – Work with the Library Commission to advertise and successfully recruit the next Poet Laureate for the 2023-2025 calendar years.
Update the Community Funding Policy – Review and update the Community Funding Policy to establish and initiate for the FY 2023-2024 grant funding period.
Support Outreach Efforts for New Park Projects (Memorial Park Design, Lawrence MiGy Park, Jollyman All-Inclusive Playground) – Partner with Communications and the Capital Improvement Program to perform outreach efforts for the upcoming park-related projects.
Public Works Department
Local Roadway Safety Plan – Develop Local Roadway Safety Plan to identify high-risk intersections and roadway corridors, design safety improvements, and enhance eligibility for federal safety improvement grants Via Shuttle – Explore options for a multi-city expansion of the Via on-demand shuWle, in partnership with the cities of San Jose and Santa Clara. In conjunction with this, staff has applied for a CalSTA grant through the Transit and Intercity Rail Capital Program (TIRCP) to potentially fund one-half the capital and operating costs of the expansion.
Facilities Operations Improvements - Implement an enhanced preventive maintenance program for City facilities including emergency power, ventilation systems, and energy management systems at various City facilities.
Development Improvements - Review and entitlement for various new development projects including Marina, Vallco Parkway 1 for Apple, 1655 S. De Anza Blvd, and other new project initiatives.
Environmental Programs – Prepare for negotiation of a new landfill agreement. The current agreement, established in 1989, expires in November 2023.
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Budget Overview
The Proposed Budget across all City funds recommends expenditures of $125.5 million, a decrease of $23.4 million, or 15.7%, and total revenues of $128.8 million, a decrease of $4.1 million, or 3.1% from last year's Adopted Budget.
General Fund expenditures, which support most City operations, are $93.0 million, an increase of $3.2 million, or 3.6%, from the FY 2021-22 Adopted Budget. General Fund revenues are $93.7 million, an increase of $4.0 million, or 4.5%, from the FY 2021-22 Adopted Budget. The General Fund is projected to end FY 2022-23 with approximately $35.9 million in unassigned fund balance. Unassigned fund balance may be transferred to the Capital Reserve, Capital Projects Reserve, or Section 115 Trust per the Fund Balance and Use of One Time Funds Policy.
As shown in the chart below, the Proposed Budget’s largest fund is the General fund at 74%.
The graph below summarizes the changes in the City’s General Fund for a five-year period:
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Note: Revenues from Investment Fund (Fund 130) not included in chart The Proposed Budget includes funding for 223 positions (including Councilmembers), an increase of 12 positions from the FY 2021-22 Amended Budget. While the City has experienced increases in sales tax during the pandemic, there is uncertainty around the City’s future revenues post-pandemic. The City is cautiously optimistic as it adds new full-time employees and City staff will bring forward requests for City Council approval as more information becomes available to make informed decisions. The City is proposing 12 additional positions to meet the demand for City services.
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Changes to the Budget and Policies
Revised Fees
City Council is expected to consider the FY 2022-23 fee schedules on May 3, 2022. The increases to the various fee schedules are estimated to result in increased revenues of approximately $92,662 in the General Fund and $158,000 in the Enterprise Funds.
Investment Policy
The City Council annually updates and adopts a City Investment Policy that is in compliance with State statutes on allowable investments. The Audit CommiWee reviews the policy and acts as an oversight commiWee on investments. An external auditor performs agreed-upon procedures to review City compliance with the policy. The policy is expected to be available on the City website as part of the May 17, 2022, City Council agenda.
GANN Appropriations Limit
The City's FY 2021-22 appropriations limit is $114,666,491, a $5.6 million increase or 5.1% higher than the FY 2020-21 limit of $109,062,934. If a city exceeds the legal limit, excess tax revenue must be returned to the State or citizens through a process of refunds, rebates, or other means that may be determined at that time. For FY 2021-22, the City's estimated appropriations of proceeds from taxes, less statutory exclusions, do not appear to exceed the limit and are not expected to present a constraint on current or future deliberations. The California Department of Finance will publish the price and population data to calculate the City’s FY 2022-23 appropriations limit in May 2022. As a result, the FY 2022-23 Appropriations Limit will not be known until May 2022 and will be included in the Adopted Budget.
Revised Fund Balance and Use of One-Time Funds Policy
On March 8, 2022, City Council approved updates to the CommiWed, Unassigned Fund Balance and Use of One-Time Funds Policy. The Economic Uncertainty Reserve was increased from $19 million to $24 million to align with increases in the City's revenues and expenditures. A Capital Projects Reserve of $10 million was created to fund capital projects. Finally, $2 million was transferred to the Section 115 Pension Trust to fund pension costs.
Budget Document
In FY 2021-22, the budget document was updated to include staffing tables in each department and program section. The staffing tables include two years of actuals and two years of budgeted staffing by position title. An online appendix was also added to include two years of actual and two years of budgeted expenditures at the account detail level.
Budget by Fund
General Fund
The General Fund pays for core services such as public safety, recreation and community services, planning and community development, streets and trees, and a host of other vital services. The revenue used to pay for these services comes primarily from local taxes such as property tax and sales tax, transient occupancy tax, charges for service, and a variety of other discretionary sources.
General Fund revenues are projected to be $93.7 million, an increase of $4.0 million, or 4.5%, from the FY 2021- 22 Adopted Budget. In FY 2020-21, sales tax revenues experienced an unprecedented increase due to increased demand for computer equipment during the transition to remote work and increases in State-wide online FY 2022-23 Proposed Budget Budget Message 32
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sales. Sales tax is expected to be lower in FY 2022-23 compared to FY 2020-21 as the California Department of Tax and Fee Administration (CDTFA) is currently auditing the City's sales tax revenues. The impact of this audit is unknown but has the potential to have a significant impact on the City’s sales tax revenues. Once more information is known, staff will bring updates to Council. Transient occupancy taxes will continue to be heavily impacted as business travel has been slow to recover. Property tax revenues will increase slightly.
General Fund expenditures are $93.0 million, representing a $3.2 million, or 3.6% increase from the FY 2021-22 Adopted Budget. The increase is primarily due to the addition of 12 positions and the addition of a $2.5 million transfer to the Capital Reserve. In the past, transfers to the Capital Reserve were not programmed in the Adopted Budget; instead, funds were transferred to the Capital Reserve as a mid-year budget adjustment. Due to the uncertainty of the pandemic, the City implemented significant budget reduction strategies in FY 2020-21 which increased the General Fund's unassigned fund balance. With the General Fund’s fiscal condition remaining strong, the City intends to invest in infrastructure and additional staffing to meet the needs of the community. As the City emerges from the pandemic, staff will continue to monitor the City's fiscal condition and ensure City Council is informed on a regular basis.
The following chart shows four years of total revenue, expenditures, and changes to fund balance for the General Fund:
Note: Revenues from Investment Fund (Fund 130) not included in chart In FY 2022-23, General Fund unassigned fund balance is projected to be $35.9 million, an increase of $3.6 million, or 11.2%, from FY 2021-22. Total fund balance is estimated to be $97.6 million, an increase of $1.0 million, or 1.1%, from FY 2021-22. This is primarily attributable to a small surplus in FY 2022-23.
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As shown in the graph below, the majority of General Fund resources are used to support Public Works (28%), Law Enforcement (18%), Non-Departmental (13%), Community Development (12%), Administration (9%), and Parks and Recreation (8%). Non-Departmental expenditures are transfers to other funds.
Special Revenue Funds
Special Revenue Funds are a fund type used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds account for 9% of the City’s budgeted expenditures. The largest Special Revenue Fund accounts for streets, roads, and transportation.
Other funds account for storm drain management, affordable housing programs, and park development.
The Proposed Budget for Special Revenue Funds is $11.2 million, a $7.4 million, or 39.7%, decrease from the FY 2021-22 Adopted Budget. The decrease is because the Capital Improvement Program is not included in the Proposed Budget. The Capital Improvement Program will be presented to City Council at a separate study session and included in the Adopted Budget. The Special Revenue Funds are funded by $12.9 million in restricted department revenue and $3.0 million in transfers. The Special Revenue Funds are projected to begin the year with fund balance of $28.4 million and end the year with fund balance of $33.1 million, increasing by $4.7 million.
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Debt Service Funds
The Public Facilities Corporation Debt Service Fund provides for the payment of principal, interest, and associated administrative costs incurred with the issuance of debt instruments. On September 29, 2020, the City’s 2020A Certificates of Participation (2020 COPs) were successfully sold in order to refund the City’s 2012 Certificates of Participation for debt service savings. The refunding generated net present value savings of approximately $3.14 million, 11.61% of refunded par, and a True Interest Cost of 0.72%. Savings to the City’s General Fund amounts to approximately $494,000 per year for the next 10 years, or almost $5 million in total savings. The debt is expected to be fully paid by FY 2029-30.
The Proposed Budget for Debt Service Funds is $2.7 million, relatively unchanged from the FY 2021-22 Adopted Budget. The Debt Service Funds are funded by $2.7 million in transfers.
Capital Projects Funds
The Capital Improvement Project Fund, Stevens Creek Corridor Park Fund, and Capital Reserve Fund are currently in the Capital Projects Fund type category. This fund type is typically used to account for financial resources that are used for the acquisition or construction of major capital facilities or to provide facilities for City departments, and are identified in the five-year Capital Improvement Program (CIP).
The Proposed Budget for Capital Projects Funds is $175,000, a decrease of $19.4 million, or 99.1%, from the FY 2021-22 Adopted Budget because the Capital Improvement Program budget is not included in the Proposed Budget. The Capital Improvement Program will be presented to City Council in a separate study session and added to the Adopted Budget.
Enterprise Funds
Enterprise Funds are used for services that are funded directly by fees charged for goods or services. Enterprise Funds consist of Resource Recovery for the solid waste collection franchise, Blackberry Farm for the Cityowned golf course, the Cupertino Sports Center, and Recreation Programs for cultural, youth, teen, sports, and physical recreation programs.
The Proposed Budget for Enterprise Funds is $9.0 million, a decrease of $0.4 million, or 4.6%, from the FY 2021- 22 Adopted Budget. The Enterprise Funds are funded by $5.8 million in program revenue and $0.4 million in transfers from the General Fund, and $2.8 million in reserves. The Enterprise Funds are projected to begin the year with $7.5 million in reserves and end the year with $4.7 million in reserves, decreasing by $2.8 million.
Impacts to Enterprise Fund revenues as a result of COVID-19 were significant, particularly while shelter-inplace orders remained in effect. While the City anticipates recovery to pre-pandemic levels, the timing and extent of the recovery are difficult to measure. As a result, conservative revenue estimates are programmed for the Enterprise Funds.
Internal Service Funds
Internal Service Funds are used for areas where goods or services are provided to other City departments or governments on a cost-reimbursement basis. Internal Service Funds include funds and programs for information technology, workers’ compensation, equipment, compensated absence, long-term disability, and retiree medical insurance.
The Proposed Budget for Internal Service Funds is $9.4 million, an increase of $0.6 million, or 6.8%, from the FY 2021-22 Adopted Budget. The Internal Service Funds are funded by $4.5 million in program revenue, $3.3 million in transfers from the General Fund, and $1.6 million in reserves. The Internal Service Funds are projected to begin the year with $3.7 million in reserves and end the year with $2.0 million in reserves, decreasing by $1.6 million.
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Special Projects
The FY 2022-23 Proposed Budget includes funding for several one-time Special Projects. These projects are identified as part of the Special Project section within each program and are summarized in the following table.
The City Work Program is being presented to City Council in a separate study session and is not included in the Proposed Budget. City Work Program project budgets will be included in the Adopted Budget.
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Current Economic Update
National and State Economic Conditions
Real gross domestic product (GDP) increased at an annual rate of 6.9 percent in the fourth quarter of 2021, following an increase of 2.3 percent in the third quarter. The increase was revised down 0.1 percentage point from the "second" estimate released in February. The acceleration in the fourth quarter was led by an acceleration in inventory investment, upturns in exports and residential fixed investment, and an acceleration in consumer spending. In the fourth quarter, COVID-19 cases resulted in continued restrictions and disruptions in the operations of establishments in some parts of the country. Government assistance payments in the form of forgivable loans to businesses, grants to state and local governments, and social benefits to households all decreased as provisions of several federal programs expired or tapered off.
In 2022, geopolitical conflict has fueled volatility in financial markets. The conflict has exacerbated inflationary pressures, particularly in energy and commodities, and has caused tightening conditions in financial markets.
While consumer spending and economic growth remain strong, an extended conflict along with elevated energy prices increases the risk of an economic slowdown later this year. While the Federal Reserve is expected to tighten monetary policy, the Federal Open Market CommiWee (FOMC) has very liWle margin for error as it aWempts to combat inflation without pushing the economy into a recession. Over the near-term, the City’s FY 2022-23 Proposed Budget Budget Message 37
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investment manager, Chandler Asset Management, expects financial market volatility to remain elevated and conditions to remain tighter with heightened geopolitical risk, supply chain bottlenecks and persistent inflation, and the Federal Reserve’s pivot to less accommodative monetary policy.
The FOMC raised the federal funds rate by 0.25% at their March 16th meeting to a target range of 0.25% to
0.50%. The Federal Reserve also ended its bond-buying program as expected in March, which included the purchase of Treasury and agency mortgage-backed securities. Federal Reserve Chair Powell suggested that balance sheet runoff could begin as early as their next meeting in May, sooner than previously anticipated, and that the pace of the unwind will likely be faster than in the previous quantitative tightening cycle. The dot plot favors six additional rate hikes in 2022, which implies a 25 basis point rate hike at each remaining meeting this year, but the Fed hasn’t ruled out incorporating one or more 50 basis point hikes to address inflation.
The FOMC’s Summary of Economic Projections forecasts higher Personal Consumption Expenditure (PCE) inflation this year at 4.3% and a lower growth rate of 2.8% real GDP. Chandler Asset Management is anticipating additional rates hikes by the Federal Reserve this year, but they do not believe that monetary policy is on a pre-set course and expect the Federal Reserve's policy adjustments will depend on developments in the economy.
The U.S. unemployment rate was 3.6% in March 2022, down from 6.0% in March 2021. For the first time since the start of the pandemic, the nation’s unemployment rate has returned to its February 2020 level of 3.5%. The participation rate increased to 62.3% from 62.4%, remaining below February 2020 levels of 63.4%. A broader measure of unemployment, U-6, which includes those who are marginally aWached to the labor force and employed part-time for economic reasons, decreased to 6.9% from 7.2%.
Consumer confidence, as reflected by the Conference Board Consumer Confidence Index, decreased over the previous year and was 107.2 as of March 2022, up from 105.7 in February. Consumer confidence was up slightly in March aNer declines in February and January. Consumer confidence continues to be supported by strong employment growth and thus has been holding up remarkably well despite geopolitical uncertainties FY 2022-23 Proposed Budget Budget Message 38
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and expectations for inflation over the next 12 months reaching 7.9 percent—an all-time high. However, these headwinds are expected to persist in the short term and may potentially dampen confidence as well as cool spending further in the months ahead.
California’s unemployment rate decreased to 4.9% in March 2022, a 3.5 percentage point decrease from 8.4% in March 2021. Employment increased to 17,396,400 in March 2022, an increase of 1,041,900, or 6.4%, from March 2021. Per capita personal income increased 7.1% in 2020 over 2019, mostly due to faster growth in wages; however, it is reasonable to anticipate declines in income in 2021 as a result of COVID-19. In February, growth in the housing market continued over the prior year with prices of single-family homes up 10.3% and sales down 8.2% from a year ago according to the California Association of Realtors (CAR). Growth in Santa Clara County also increased over the prior year with the prices of single-family homes up 22.3% and sales down
20.3% from a year ago.
Cupertino Economic Conditions
Employment in the San José/Sunnyvale/Santa Clara Metropolitan Statistical Area (MSA) continues to improve since the onset of the COVID-19 pandemic. The preliminary estimate of the March 2022 employment level in the MSA was 1,041,600 representing an approximately 53,000 increase from the March 2021 level of 989,000.
The March 2022 preliminary unemployment rate of 3.0% has decreased from 5.1% a year ago and is the lowest since February 2020, the start of the pandemic. The local unemployment rate is lower than the national unemployment rate.
Housing prices remain strong compared to the same period in 2021. According to CoreLogic, in February 2022, the median sale price for single-family residences and condos was $2,280,000, a 1.3% increase from February 2021. The increase in the median home prices correlates with property tax revenue increasing from last year.
The City experienced a net taxable value increase of 3.5% for the 2021-22 tax roll. The bulk of the increase was due to increases in residential properties. The effects of COVID-19 on housing prices in Cupertino and the Bay Area have yet to be seen. Although values continue to increase, staff will monitor the potential impact of longterm and even permanent remote work in the City and region.
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Key Budget Assumptions
Revenue Assumptions
The FY 2022-23 Proposed Budget is heavily reliant on the General Fund’s top three revenue producers: sales tax, property tax, and transient occupancy tax. Although sales tax experienced unanticipated increases in FY 2020-21, staff consider it a one-time increase and expect sales tax to remain below the highs in FY 2020-21.
Property taxes remain stable and although positive growth is anticipated in FY 2022-23, the impacts of remote work on property values remain to be seen. Transient occupancy taxes are expected to be higher than FY 2021- 22; however, they are expected to be significantly less than historical highs in FY 2018-19. Although transient occupancy taxes are expected to recover by FY 2023-24, the impacts of remote work on business travel longterm have yet to be seen.
Personnel Assumptions
The City is currently negotiating with its bargaining groups because labor agreements expire on June 30, 2022.
Due to the uncertainty, personnel budgets only account for step increases and changes in CalPERS retirement rates. The budget does not include any cost-of-living adjustments (COLA) or equity adjustments.
Employees who have yet to reach the top step in their classification’s salary range are eligible to receive a step increase on their anniversary date. Typically, classifications have five steps, with each increase equivalent to a 5% increase in salary. Currently, approximately 41% of employees are below Step 5.
Non-Personnel Assumptions
Non-Personnel budgets were developed based on actual expenditures in prior years and adjusted for FY 2022- 23 funding needs. In addition, one-time projects were excluded to ensure that expenditure trends reflect ongoing expenditure needs. Contingency budgets remained reduced. Program contingencies were cut in half to 2.5% in FY 2020-21 and the City Manager’s Contingency was reduced to $75,000 in FY 2021-22. In prior years, program contingencies were 5% of Materials and Contract Services and the City Manager’s Contingency was 5% of General Fund Materials and Contract Services, excluding the law enforcement contract.
Ongoing Challenges
Retirement Benefits
Rising retirement costs are driving the increase in employee benefits. Cupertino provides retirement benefits for its employees through the California Public Employee’s Retirement System (CalPERS). Poor investment returns during the Great Recession significantly decreased the plan’s assets. In addition, enhanced benefits and actuarial assumption changes due to increased life expectancies increased the plan's liabilities. As a result, the City's pension costs have increased significantly and are one of the City's largest financial obligations.
The City’s CalPERS costs are projected to increase over the next few years, as shown in the table below.
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In December 2016, the CalPERS Board of Administration lowered the discount rate from 7.5% to 7.0% with a three-year phase-in beginning in FY 2018-19. This change will result in significant increases in retirement costs but was implemented to improve the financial stability of the pension system. In FY 2021-22, the CalPERS Board lowered the discount rate from 7.0% to 6.8% because the FY 2020-21 investment gain of 21.3% triggered the Funding Risk Mitigation Policy.
2022 has been a volatile year for stocks. Financial conditions are expected to remain tighter with heightened geopolitical risk, supply chain boWlenecks and persistent inflation, and the Federal Reserve’s pivot to less accommodative monetary policy. If CalPERS' investments earn less than the 6.8% discount rate, the City can expect an increase in pension costs. The impacts from CalPERS investment earnings would affect the City's costs starting FY 2024-25 and would gradually increase over five years.
In May 2018, the City implemented a Pension Rate Stabilization Program (PRSP), a Section 115 Trust, to reduce pension rate volatility on the City’s budget. The Section 115 Trust's balance of $19.5 million, as of March 31, 2022, can be used to fund pension costs if CalPERS costs increase.
Revenue Volatility
The City’s sales tax revenue is highly dependent on a volatile revenue source: business-to-business (B2B) sales taxes. Business-to-business sales tax revenues are sensitive to economic fluctuations as Cupertino experienced during the dot-com crash from 2000 to 2004. The City's heavy reliance on the volatile high-tech industry makes the City vulnerable. The loss of one of the City’s top three sales tax producers in FY 2013-14 made the City more reliant on a single tax producer, making the City more vulnerable to its business volatility.
The City’s sales and transient occupancy tax revenues experienced great fluctuation since the outbreak of COVID-19 in 2020. While restaurants and hotels, general consumer goods, and automotive industry groups were severely impacted, the City’s business-to-business and County pool allocation share increased substantially. Statewide shelter-in-place mandates reduced sales tax revenue from restaurants and brick and mortar retail but increased sales tax revenue from online sales. Additionally, the conversion to remote work throughout the State increased the demand for computer and electronics equipment, which also increased the City’s sales tax revenues. In total, the City’s sales tax revenues spiked to historic highs in FY 2020-21, but the City considers it one-time. As the State rebounds from the pandemic and businesses continue their opening, it is anticipated the City’s restaurant and hotels, general consumer goods, and automotive industry groups will recover and increase as well. However, these increases will only slightly mitigate the anticipated declines in the City’s business-to-business and County pool allocation as online sales fall from recent historic highs. Transient occupancy remains devastated due to a reduction in business travel during the pandemic. Although recovery is anticipated by FY 2023-24, the extent of the post-pandemic recovery is unknown.
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Budget Guide
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Our Mission
The mission of the City of Cupertino is to provide exceptional service, encourage all members of the community to take responsibility for one another, and support the values of education, innovation, and collaboration.
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Elements of the Budget Document
The budget is the City’s fundamental policy document. It describes the City’s goals and details how resources are allocated to achieve these goals. The budget serves as the annual financial plan, an operations guide, and a communications tool.
The budget guide provides an overview of the elements of the budget document. It includes a glossary of budget terminology. The budget document includes the following key elements:
Budget Message: This section includes the City Manager’s transmiWal leWer submiWing the budget to the City Council. The Budget Message also summarizes the City’s current and long-term financial position, highlights new programs and organizational changes addressed in the budget, and outlines both short and long-term goals of our city government.
Budget Guide: This section includes the City’s Mission and other tools to assist the reader in identifying key terminology in the budget document.
Community Profile: This section describes Cupertino’s history, the economic and city profiles, community statistics, recreation and community services, education, and additional areas of interest in the city.
Financial Policies: This section provides financial policies.
Financial Schedules: This section provides financial information on projected revenues, expenditures, fund balances, and reserves. It includes the Financial Overview by Fund as well as detailed fund descriptions and information on all revenues and expenditures.
This section also includes a forecast of revenues, expenditures, and fund balance for the next twenty years.
Additionally, this section includes an analysis of all City revenues by category. Revenue projections are based on trends, current economic indicators, and input from other agencies or consultants. Sales tax projections are based on input from our sales tax consultants, industry trends, and major company forecasts. Property tax revenues are projected by the county and adjusted by staff based on known trends.
Departmental Operating Budgets: This section details historical and proposed expenditures by operating department. The City is organized into eight key operating functions, including Council and Commissions, Administration, Law Enforcement, Innovation and Technology, Administrative Services, Parks and Recreation, Community Development, and Public Works. Each department budget includes a summary narrative, financial information for the department and each of its major divisions, and staffing information.
Expenditures for employee compensation and benefits are based on negotiated contracts. The materials categories of expenditures are based on a zero-base budget, with increases each year by the Consumer Price Index (CPI). Contract services are also based on a zero-based budget, with increases each year based on negotiated increases or CPI. Capital outlays are justified each year by the departments. Special Projects include any one-time projects or costs.
Departmental expenditures are divided into the following categories:
Employee Compensation represents permanent full-time and part-time salary costs and overtime.
Employee Benefits represents CalPERS retirement, health insurance costs, and other benefits.
Materials and Supplies represent items purchased for repair and maintenance, operational activities such as books, uniforms and recreation supplies, and office supplies.
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services.
Cost Allocation represents Cost Allocation and Internal Service charges to user departments Contingencies, 2.5% of budgeted materials and contract costs, are designed for unexpected expenditures and/or emergencies.
Capital Outlay represents expenditures for tangible fixed assets including land, buildings, furniture, equipment, and City vehicles.
Special Projects represent any one-time projects or costs.
Debt Service/Other represents principal and interest payments on outstanding debt and inter-fund transfers.
Non-Departmental Operating Budgets: This section details historical and proposed expenditures for the functions of inter-fund transfers and debt service.
Capital Improvement Program (CIP): The Capital Improvement Program is in a separate document, called Capital Improvement Program, that details the proposed capital projects for the next five fiscal years. These projects are organized into four categories: New Projects, Existing Projects - Multi-Year Funding, Existing Projects - Completely Funded, and Existing Projects - Externally Funded. The five-year plan denotes funding sources and a description of each project. The City Council approves funding for capital projects on a yearly basis based on the total project cost. The project may expend the funds over multiple years.
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Glossary of Budget Terminology
The City's budget contains specialized and technical terminology that is unique to public finance and budgeting. To help the reader understand the terms, a glossary of budgetary terminology is found below.
Accrual – A basis of accounting in which revenues are recognized in the accounting period in which they are earned and expenses are recognized in the period in which they are incurred.
Adopted Budget – Revenues and appropriations approved by the City Council in June for the following fiscal year.
Allocated Costs – An expense charged by one department/division to another for services performed or expenditures of a general nature that are charged to one main account and allocated to other departments/divisions by a specified formula.
Amended Budget – The status of appropriations between July 1 and June 30 includes the adopted budget, budget amendments, prior year encumbrances, approved carryovers, and transfers between objects, divisions and departments.
Appropriation – An authorization made by the City Council that permits the City to incur obligations and to make expenditures of resources.
Balanced Budget – A balanced budget requires that budgeted expenditures be equal to or less than projected revenues for the budget year.
Budget – A financial plan for a specific period of time (fiscal year) that matches all planned revenues and expenditures with various municipal services.
Budget Amendment – A legal procedure to revise a budget appropriation. Adjustments to expenditures within or between departmental budgets may be accomplished administratively. City Council approval is required for additional appropriations from fund balances or from new revenue sources.
Capital Improvement Program – A plan for capital expenditures to provide for the acquisition, expansion, or rehabilitation of an element of the City's physical plant to be incurred over a fixed period of several future years.
Capital Outlay – Expenditures relating to the purchase of equipment, land, and other fixed assets.
Cost Allocation Plan – A plan that details how indirect costs are calculated and allocated to user departments.
Cost Recovery – The establishment of user fees that is equal to the full cost of providing services.
Department – A major administrative segment of the City that indicates overall management responsibility for an operation or a group of related operations within a functional area.
Division – A unit of organization that reports to a department.
Enterprise Fund – A fund established to account for activities that are financed and operated in a manner similar to private business enterprises, in which costs of providing services are primarily recovered through user fees.
Expenditure – Utilization of fund resources. Expenditures include operating expenses, debt service and capital outlays.
Expenditure Category – A basis for distinguishing types of expenditures. The major expenditure categories used by the City are employee compensation, employee benefits, materials, contract services, appropriations FY 2022-23 Proposed Budget Budget Guide 48
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for contingency, special projects, capital outlay and debt service.
Fiscal Year – A twelve-month time period signifying the beginning and ending period for recording financial transactions. The City has specified July 1 through June 30 for its fiscal year.
Full-Time Equivalent (FTE) – The ratio of a position in comparison to the amount of time a regular, full-time employee normally works in a year. A full-time employee (1.00 FTE) is paid for 2,080 hours a year. Positions budgeted to work less than full-time are expressed as a percent of full-time.
Fund – A fiscal and accounting entity for which the recording of financial transactions is made for the purpose of carrying on specific activities in accordance with the requirements placed upon the use of financial resources.
Fund Balance – The net effect of assets less liabilities at any given point in time.
General Fund – The fund used to account for the major operating revenues and expenditures of the City, except for those financial resources that are required to be accounted for in another fund category. General Fund revenues are derived primarily from property and other taxes.
Goal – Broad mission statements that define the purpose of a department.
Governmental Fund – Account for activities that are primarily tax-supported operations or other mandatory payments. Reported using the current financial resources measurement focus and the modified accrual basis of accounting.
Infrastructure – Long-lived capital assets that normally are stationary in nature and can be preserved for a significantly greater number of years than most capital assets. Examples include roadways, bridges, and drainage systems.
Internal Service Fund – A fund used to account for the services provided by one department to other departments on a cost-reimbursement basis.
Modified Accrual – Under the modified accrual basis of accounting, revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred pursuant to appropriation authority.
Operating Budget – A financial plan for the provision of direct service and support functions that provide basic governmental services. The operating budget contains appropriations for such expenditures as employee compensation, materials, contract services, capital outlay, and debt service. It does not include Capital Improvement Project expenditures.
Program – A unit or organization that reports to a division.
Reserve – An account used to designate a portion of the fund balance for specific future use and is, therefore, not available for general appropriation.
Revenue – Increases in fund resources. Revenues include income from user fees, taxes, permits, and other sources.
Self-Supporting Activity – An enterprise activity where all service costs (including principal and interest debt payments) are primarily covered solely from the earnings of the enterprise.
Subsidy – Supplemental resources provided to ensure adequate funding when anticipated expenditures exceed revenues.
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Transfer Out – Amounts transferred from one fund to another to assist in financing the services for the recipient fund.
User Fees – Fees charged to users of a particular service provided by the City.
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Commonly Used Acronyms
ABAG Association of Bay Area Governments
ACFR Annual Comprehensive Financial Report
ARPA American Rescue Plan Act
B/PAC Bicycle/Pedestrian Advisory Committee
BAAQMD Bay Area Air Quality Management District
BMR Below Market Rate
CAP Cost Allocation Plan
CARES Coronavirus Aid, Relief, and Economic Security Act CDTFA California Department of Tax and Fee Administration CMTA California Municipal Treasurers Association
CPI Consumer Price Index
CPUC California Public Utilities Commission
CSMFO California Society of Municipal Finance Officers
EAP Employee Assistance Program
EIR Environmental Impact Statement
EOC Emergency Operations Center
ERAF Education Revenue Augmentation Fund
FEMA Federal Emergency Management Agency
FLSA Fair Labor Standards Act
FPPC Fair Political Practices Commission
FSA Flexible Spending Account
FY Fiscal Year
GASB Governmental Accounting Standards Board
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GFOA Governmental Finance Officers Association
HVAC Heating Ventilation and Air Conditioning
IPM Integrated Pest Management
JPA Joint Powers Authority
LTD Long Term Disability
MOU Memorandum of Understanding
MTC Metropolitan Transportation Commission
OES Office of Emergency Services
OPEB Other-Post Employment Benefits
PC Planning Commission
PEMHCA Public Employees’ Medical and Hospital Care Act
PERS (aka CalPERS) Public Employees’ Retirement System
PTA Parent Teacher Association
RDA Redevelopment Agency
RFP Request for Proposals
RFQ Requests for Qualifications
RHNA Regional Housing Needs Allocation
RMS Records Management System
RWQCB Regional Water Quality Control Board
UAL Unfunded Actuarial Liability
UBC Uniform Building Code
VSP Vision Service Plan
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Revenues, Expenditures, and Fund Balance Table
Taxes – Money received from tax revenue
Licenses and Permits – Money received from license and permit fees Use of Money and Property – Interest earnings, facility. and concession rents Intergovernmental Revenue – Funds received from federal, state, or local governments such as grants Charges for Services – Fees collected for services provided by the department Fines and Forfeitures – Money received from fines and penalties Miscellaneous Revenue – Money received from various sources such as donations, salvage, and legal settlements
Interdepartmental Revenue – Interdepartmental service charges and transfers Total Revenues – Total of all revenue categories
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Employee Compensation – Full-time and part-time salaries Employee Benefits – Employee benefits including health insurance and retirement Materials – All material, conference, and training costs Contract Services – All contracted goods and services
Cost Allocation – Cost of services from other City departments and depreciation expenses Capital Outlay – Land, buildings, vehicles, infrastructure, and assets used in operation beyond one year Special Projects – One-time projects or costs
Contingencies – Funds for unexpected expenses and emergencies Total Expenditures – Total of all expenditure categories Change in Fund Balance – Total Revenues minus Total Expenditures plus General Fund Contribution. Fund balance is the difference between assets and liabilities.
General Fund Contribution – Use of General Fund fund balance, for programs in the General Fund, or use of transfers from the General Fund, for programs not in the General Fund.
The inclusion of current and historical "actual" and "budget" information is a necessary component of the Government Finance Officer's Association (GFOA) reporting requirements. Due to the extensive amount of financial data, it is important to understand the meaning of these tables. "Actual" data represents actual revenues or expenditures that have been recognized or incurred in the respective fiscal year. Although amounts were budgeted in those years, these actual amounts are irrespective of the budget which should be taken into account when comparing historical actuals with current budgeted figures. Historical budget versus actual information for the last 4 fiscal years at the account detail level is available in the Proposed Budget Appendix on the City's budget website (cupertino.org/budget).
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Community Profile
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History
“This place of San Joseph Cupertino has good water and much firewood, but nothing suitable for a seGlement because it is among the hills very near to the range of cedars which I mentioned yesterday, and lacks level lands.” When Spanish explorer San Juan Bautista De Anza traveled through California in 1776, he and his party documented these words about the land surrounding Stevens Creek, named back then Arroyo San Joseph Cupertino. However, first impressions can oNen be misleading. Underneath the spiny, overgrown bush was a completely different land waiting to be uncovered. During this time, the area was populated by Native Americans who hunted and gathered, prospering from the abundant resources the land had to offer.
It wasn’t until 1848 when the first American seWler, Elijah Stephens, a blacksmith from South Carolina, moved to the area—at this time, named simply ‘West Side’ and primarily owned by the government. ANer crossing over the Sierra Nevada in wagons, he discovered the true value of the land underneath the bush and proceeded to purchase over 300 acres of farmland to grow grapes and blackberries. Stephens pioneered the way for farmers, which established West Side as an agricultural hot spot. The land Stephens owned eventually became Blackberry Farm, and the road, creek, and reservoir were all named after him, although misspelled.
In the early West Side, many of the newest advances in agriculture were being developed. SeWlers were drawn to the land because of its rich earth, where they were able to grow products that competed on the world market. Once the bush had been cleared, they grew grapes, which covered the West Valley area with vineyards by the late 1800s. By the 1900s, a plant louse called Phylloxera spread throughout the vineyards, aWacking the roots of the grapevines, killing the grapes, and puWing a halt to wine production. As a solution, nearly everything was replanted with fruit orchards. When the fruit trees blossomed, visitors would come to the orchards for “The Valley of Heart’s Delight” festivals, which celebrated the prosperous agriculture of the West Valley area.
Apart from the farmland, West Side was primarily known as a crossroads, an intersection between SaratogaSunnyvale Road and Stevens Creek. This served as a way station for travelers to pass through while going from town to town. As more people came to West Side to take advantage of the rich farmland, more family holdings gathered around the crossroads. Starting off as just a post office and home union store, West Side’s humble crossroads brought many diverse communities, all aWracted by the preferable climate and profitable market for crops.
As more people were drawn to the area around the crossroads, the orchards were gradually replaced with modern houses for workers. The population steadily grew, and the face of West Side changed, progressing into a more modern town. The community wanted to rename the city, so as to not confuse it with other cities, as well as establish a unique identity. John T. Doyle, a lawyer from San Francisco, and writer of historical anthologies on the area chose the name “Cupertino” after the original name of the creek.
ANer the post-World War II population boom, the growing community petitioned for Cupertino to become an incorporated town. Members of the community were worried that the alternative to incorporation was to have parts of Cupertino annexed by surrounding cities, spliWing up the community and erasing the local culture. To preserve the rural atmosphere, lower taxes for farmers, start a local government, and prepare for growth, Cupertino voted for incorporation. In 1955, Cupertino officially became the 13th city in Santa Clara County.
By the 1970s, Cupertino once again began to undergo dramatic changes. The growing community aWracted several large technology corporations. Lockheed Martin, HP, Intel, and many other big names established themselves in Silicon Valley. Apple Inc. was founded in Cupertino in 1976 and quickly grew into the tech giant it’s known for today.
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Apple Park Visitor Center
In the late 20th century, Cupertino and the surrounding areas experienced another surge in population growth, this time due to the immigration of people from Asian countries. Immigration laws at the time were in the favor of families looking to move to Silicon Valley. People immigrated here for a variety of reasons—whether they were aspiring for career prospects with major tech companies, or striving for quality education for their children, everyone who immigrated here had a common goal: to find opportunities to work hard for a beWer life for themselves and their families.
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Community Economic Profile
Cupertino, with a population of 66,274 and City limits stretching across 13 square miles, is considered one of the most prestigious cities to live and work in the Bay Area.
Economic health is an essential component to maintaining a balanced city, which provides high-level opportunities and services that create and help sustain a sense of community and quality of life. Public and private interests must be mutual so that success as a partnership is a direct reflection of success as a community. The cornerstone of this partnership is a cooperative and responsive government that fosters residential and business prosperity and strengthens working relationships among all sectors of the community.
Because Cupertino is a mature, 93% built-out city, the City of Cupertino focuses on business retention and revitalization. Cupertino is world-renowned as the home to high-tech giant Apple, Inc., and as a community with stellar public schools. De Anza College, one of the largest single-campus community colleges in the country, is another major employer and a magnet for aWracting local and international students. The City’s proactive economic development efforts have resulted in an innovative environment for start-ups and growing companies to thrive, including Bromium, DURECT, SugarCRM, Panasonic Venture Group, Altia Systems, Mirapath, Aemetis Inc, Mist Systems, and Plus. The City strives to retain and aWract local companies through active outreach and a responsive and customer-oriented entitlement process.
Cupertino is excited to have a number of new mixed-use development projects offering more retail and dining options, as well as providing additional housing opportunities to meet the needs of the growing community.
Main Street
The Main Street and Nineteen800 mixed-use developments have created a vibrant downtown area for Cupertino, offering a large selection of restaurants and retailers, including Alexander’s Steakhouse, Eureka!, Oren’s Hummus, Lazy Dog, Ippudo, Pasta Armellino, HaiDiLao Hot Pot Restaurant, Pineapple Thai, Pressed Juicery, Orangetheory, 85 Degree Bakery, SomiSomi, Sul & Beans, Kura Sushi, Vitality Bowls, La Pizzeria, Tancha, Koja Kitchen, Bishops Cuts & Colors, Capezio, Howard’s Shoes, and Meet Fresh. Housing, office, and the Residence Inn by Marriott are available to support the thriving area.
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Serving as a long-time retail anchor for the community, The Marketplace has a variety of stores and restaurants popular with students, families, and working professionals. They include Galpao Gaucho, Daiso, Marukai Groceries, Harumi Sushi, La Patisserie Bakery, Beard Papa’s, Legend’s Pizza, Icicles, Kong’s Tofu & BBQ, Rori Rice, One Pot Shabu Shabu, Olarn Thai, and Erik’s DeliCafé to name a few.
Cupertino Village is undergoing renovations to upgrade existing buildings, construct new buildings, parking, and open-courtyard space. The shopping center is home to 99 Ranch Market, Duke of Edinburgh Pub & Restaurant, JSJ Street Kitchen, Kira Kira Beauty, MOD Pizza, Ten Ren Tea, Fantasia Coffee & Tea, Kee Wah Bakery, Happy Lemon, and many other Asian restaurants, bakeries, and shops. The property owners have received approval to construct a new full-service boutique hotel with 185 rooms to accommodate business and leisure travelers.
Cupertino features many other retail opportunities, including TJ Maxx and Home Goods, Whole Foods, Target, Party City, and over 180 restaurants to serve residents and the local workforce. There are now seven hotels providing over 1,000 rooms, to serve the area: The AloN Cupertino, Cupertino Hotel, Hilton Garden Inn, HyaW House, Juniper Hotel operated by Curio, Marriott Courtyard, and Residence Inn by Marriott.
Another longtime retail anchor in north Cupertino is Homestead Square Shopping Center, located at Homestead Road and De Anza Boulevard. This shopping center includes a 24-hour Safeway, Ulta Beauty, Ross Stores, Pet Club, Michael’s, Rite Aid, FedEx, and numerous restaurants, such as Fish’s Wild, Pho Hoa Noodle Soup, Yayoi Teishoku Japanese Restaurant, Starbucks, Chipotle, and financial institutions.
Recently approved is the redevelopment of The Oaks Shopping Center site, located off of State Route 85 freeway and across from De Anza College. The Westport Cupertino project will be a mixed-used development consisting of 259 housing units (Rowhouse/Townhomes, senior apartments) 35 memory care rooms, and 20,000 square feet of commercial space.
Apple Park Retail Store
Apple Park, Apple’s newest corporate campus, features approximately 2.8 million square feet of office and R&D space north of Highway 280 between Wolfe Road and Tantau Avenue. A state-of-the-art Visitors Center, Observation Deck, flagship retail store, and café are open to the public.
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City Profile
The City of Cupertino operates as a general law city with a City Council-City Manager form of government.
Five council members serve four-year, overlapping terms, with elections held every two years. The Council meets twice a month on the first and third Tuesday at 6:45 p.m. in Cupertino Community Hall. The meeting schedule is available on the City’s website, and currently public participation in the Council meetings is available through online remote access.
The City has over 200 authorized full-time benefited employee positions. Departments include:
Council and Commissions
Administration
Innovation and Technology
Administrative Services
Parks and Recreation
Community Development
Public Works
Public Safety services are provided by the Santa Clara County Sheriff’s Department and the Santa Clara County Fire District.
Assisting the City Council are several citizen advisory commissions and committees including:
Audit Committee
Bicycle Pedestrian Commission
Design Review Committee
Environmental Review Committee
Economic Development Committee
Fine Arts Commission
Housing Commission
Legislative Review Committee
Library Commission
Parks and Recreation Commission
Planning Commission
Public Safety Commission
Sustainability Commission
Teen Commission
Technology, Information and Communications Commission
The Commissioners are appointed by Council and vacancies are announced so that interested residents can apply for the positions. For more information, visit cupertino.org/commissions.
Housing
Based on data from CoreLogic, the median sales price for an existing single-family home was $2,280,000 in February 2022. For housing programs in Cupertino, please see “Programs & Applications.” Community Health Care Facilities
Cupertino is served by a number of private medical practitioners and El Camino Health Urgent Care. Nearby hospitals include Kaiser Permanente Medical Center in Santa Clara, Valley Health Center in Sunnyvale, El Camino Hospital in Mountain View, O’Connor Hospital in San Jose, Community Hospital of Los Gatos, Stanford Hospital in Palo Alto, and the Saratoga Walk-in Clinic in Saratoga.
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Utilities
Utility Company Phone Number
Gas & Electric Pacific Gas and Electric 800-743-5000
Phone AT&T residential service 800-894-2355
Phone AT&T business service 800-750-2355
Cable Comcast 800- 945-2288
Solid Waste & Recycling Recology 408-588-7200
Water San Jose Water Company 408-279-7900
Water California Water Service 650-917-0152
Sewer Service Cupertino Sanitary District 408-253-7071
Tax Rates and Government Services
Residential, commercial, and industrial property is appraised at full market value as it existed on March 1, 1975, with increases limited to a maximum of 2% annually. Property created or sold since March 1, 1975 bears full cash value as of the time created or sold, plus the 2% annual increase. The basic tax rate is $1.00 per $100 (full cash value) plus any tax levied to cover bonded indebtedness for the county, city, school, and other taxing agencies. Assessed valuations and tax rates are published annually after July 1.
Assessed Valuation (Secured and Unsecured) as reported in the Santa Clara County 2021-2022 Annual Report:
Cupertino: $26,198,594,820
County: $563,781,977,403
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Retail Sales Tax Distribution
Agency Sales Tax Distribution
State 6.000%
VTA 1.125%
City of Cupertino 1.000%
County General Purpose 0.750%
County Transportation 0.250%
Total 9.125%
Transportation
Rail: The CalTrain station is four miles north of Cupertino. The Amtrak station is 10 miles south.
Air: The San Francisco International Airport is located roughly 30 miles north, and the Mineta San Jose International Airport is located approximately 11 miles south.
Bus: Cupertino is served by the Santa Clara Valley Transportation Authority. The routes listed below pass through the City. For Cupertino-specific schedules and maps visit their online website:
Route 23 San Jose – Mountain View/Palo Alto
Route 25 San Jose – De Anza College
Route 26 Eastridge – Lockheed
Route 36 East San Jose – Vallco
Route 51 Vallco – Moffett/Ames
Route 53 Westgate – Sunnyvale
Route 55 De Anza – Great America
Route 81 East San Jose – Vallco
Express 101 Camden/Branham – Palo Alto
Express 501 Palo Alto – I.B.M Bailey
Car: The City of Cupertino is in the heart of the world-renowned Silicon Valley. The major highway transportation facilities are Interstate Route 280 and State Route 85 freeways. The City is linked internally by several principal arterials and Santa Clara County expressways. Principal arterials are De Anza Boulevard, Stevens Creek Boulevard, and Wolfe Road. Nearby expressways are Lawrence Expressway and Foothill Expressway.
Sister Cities
City of Cupertino recognizes the value of developing people-to-people contacts by strengthening the partnerships between the city and its four sister cities of Copertino, Italy; Hsinchu, Taiwan; Toyokawa, Japan, and Bhubaneswar, India. Cupertino’s Sister City partnerships have proven successful in fostering educational, technical, economic, and cultural exchanges. Over the years, there have been many delegations visiting both the cities as well as many local students participating in annual student exchange programs.
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Cupertino Sister Cities Sign
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Education
Winners of numerous state and national awards for excellence, Cupertino’s schools are widely acknowledged as models of quality instruction.
Cupertino Union School District serves over 18,000 students in a 26 square mile area that includes Cupertino and portions of five other cities. The district has 20 elementary schools and five middle schools, including several choice programs. Eighteen schools have received state and/or national awards for educational excellence.
Student achievement is exceptionally high. Historically, district test scores place Cupertino among the premier public school districts in California. The district is a leader in the development of standards-based system of education and is nationally recognized for leadership in the use of technology as an effective tool for learning.
Quality teaching and parent involvement are the keys to the district’s success.
The Fremont Union High School District serves 10,000 students in a 42 square mile area covering all of Cupertino, most of Sunnyvale, and portions of San Jose, Los Altos, Saratoga, and Santa Clara. The five high schools of the district have garnered many awards and recognition based on both the achievement of students and the programs designed to support student achievements. Many high schools in the district exceed their established achievement targets for the State Academic Performance Index. District students are encouraged to volunteer and provide service to organizations within the community. During their senior year, if students complete 80 hours of service to a non-profit community organization, they are recognized with a “Community Service Award” medal that may be worn at their graduation ceremonies.
Building on its tradition of excellence and innovation, De Anza College challenges students of every background to develop their intellect, character, and abilities; to achieve their educational goals; and to serve their community in a diverse and changing world.
De Anza College Campus
De Anza College offers a wide range of quality programs and services to meet the workforce development needs of our region. The college prepares current and future employees of Silicon Valley in traditional classroom seWings and customized training arranged by employers. Several De Anza programs encourage FY 2022-23 Proposed Budget Community Profile 65
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economic development through college credit courses, short-term programs, services for manufacturers, technical assistance, and/or recruitment and retention services. De Anza College is the top Silicon Valley college in numbers of students transferring to four-year schools, and is always at or near the top statewide, earning it the distinction of, “Tops in Transfer.”
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Programs and Applications
Community Outreach Programs
Leadership 95014
Leadership 95014 is a program designed by the City of Cupertino, Wilfred Jarvis Institute, and other local sponsors to offer an exciting adult program that is guaranteed to enhance the participants’ leadership skills.
The ten full-day sessions feature inside looks at local governments, the social sector, local non-profit organizations, and educational institutions. This 9-month program is offered annually, September to May, and applications can be found online.
Neighborhood Block Leader Program
Good neighborhoods are those where neighbors work together on common issues and look out for each other.
Block leaders take extra steps to connect neighbors and build community, making our neighborhoods safer and more resilient. The Block Leader Program teaches residents how to get to know their neighbors and how to organize activities so neighbors can more easily communicate with each other. Block leaders are vital links between City Hall and the neighborhoods.
Neighborhood Block Leader Program
Neighborhood Watch
Neighborhood Watch enlists the active participation of citizens in cooperation with law enforcement to reduce crime in our communities. The program involves: neighbors working together in a program of mutual assistance; citizens being trained to recognize and report suspicious activities in their neighborhoods; and implementation of crime prevention techniques such as home security. To organize a Neighborhood Watch program in your neighborhood, please contact the Neighborhood Watch Coordinator at 408-777-3177. eCAP
Email Community Alert Program (eCAP) was created by the Santa Clara County Sheriff’s Office to prevent and reduce crime by raising community awareness, minimizing opportunities for crime, and increasing the possibility of solving crimes with the public’s help. Cupertino residents may voluntarily register their email addresses with the Sheriff’s Office for community alert messages. Citizens can sign-up at a Neighborhood Watch meeting or log-on to the City of Cupertino’s eCAP online registration.
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Affordable Housing: BMR (Below Market Rate) Program
The City of Cupertino requires 15% of all new construction be affordable to households below 120% of the County median income. Rental units are affordable to very low and low-income households while ownership units are affordable to median and moderate-income households.
The City of Cupertino contracts with Hello Housing to screen and place qualified households in most of the city’s BMR units. Hello Housing maintains a waiting list of interested persons for these BMR units. For more information, visit the website at www.hellohousing.org/stewardship/cupertino/faq or call (415) 863-3036 (messages returned within 36-48 hours).
Smart Phone Applications
Cupertino Connect: One App for Everything
Are you looking for the latest Cupertino news, events, and important updates? Do you need to apply for a permit or submit a service request? Look no further than Cupertino Connect—a new app that gives you a onestop app where all the City’s services are at your fingertips. Phone screen space is limited, and this update consolidates all the City apps on your phone into one.
With the Cupertino Connect app, you can find exactly the information you’re looking for. From COVID-19 updates, to election information, and even data on the trees in your neighborhood, you can find it all in one place. Notice an issue that you want to bring to the City’s aWention? Whether it’s a roadway concern, landscape issue, or complaint, you can now submit Cupertino 311 requests through the Cupertino Connect app! It’s easier than ever to select the type of issue, select a location, attach any photos, and submit your request for service.
To download the app, search for “Cupertino Connect” in the app store. For more information, visit https://www.cupertino.org/our-city/advanced-components/cupertino-311 Eats 95014
Eats 95014 is the local restaurant app that showcases Cupertino’s dining options such as restaurants, grocery stores, farmers’ markets, and vineyards. The app provides information on the services offered at such eating places including store hours, parking information, noise level, directions, and website link.
Ready 95014
Ready 95014 is an app that puts safety information into the hands of Cupertino residents. Steps to prepare and respond to emergencies including earthquakes, floods, fires, and pandemics are outlined in an easy-tounderstand format. The app also streams Cupertino’s own AM radio station (1670 AM) and has a map of the City’s Area Resource Centers, satellite locations opened after disasters to provide public assistance.
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Website Applications
Cupertino.org/ShopAndDine
This interactive website app offers users mapping features of current Cupertino businesses and restaurants.
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Community Statistics
Facts and Figures
Population in City Limits 66,274
Average Household Income $259,061
Average Age 40.6
Registered Voters 32,737
Democrats 14,965
Republicans 4,408
American Independent 463
Other 369
No Political Party Designated 12,532
Claritas 2021 Estimates and County of Santa Clara Registrar of Voters as of March 11, 2022 Top 25 Sales Tax Producers 2021 (in Alphabetical Order) 99 Ranch Market
Alexander’s Steak House
Alliance
Apple
Argonaut Window & Door
Benihana
BJ's Restaurant & Brewhouse
California Dental Arts
Chevron
Galpao Gaucho
Haidilao Hot Pot
Insight Direct
Insight Public Sector
Kura Revolving Sushi Bar
Lazy Dog Cafe
Mirapath
Rotten Robbie
Safeway
Shane Company
Target
TJ Maxx
Toter
Trail Head Cyclery
Valero
Whole Foods Market
HdL Companies 3Q 2021 (July - September) Sales Tax Update 1 1
2 2
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Community and Recreation Services
Blackberry Farm
Blackberry Farm is centrally located within the Stevens Creek corridor and has natural habitat for native trees, animals, and fish. The park includes an on-site café, pools, bocce ball, horseshoe courts, volleyball courts, and picnic areas with multiple sites for groups up to 400 people. The park is located at 21979 San Fernando Avenue.
Telephone: 408-777-3140.
The Blackberry Farm Golf Course
The Blackberry Farm Golf Course is a nine-hole facility with a Par of 29 and is set along the bank of Stevens Creek with narrow tree lined fairways and small greens. The course is located at 22100 Stevens Creek Boulevard. Telephone: 408-253-9200.
The Quinlan Community Center
The Quinlan Community Center is a 27,000 square foot facility that provides a variety of recreational opportunities, rental spaces, hosts classes and programs for all ages, and houses the Cupertino Historical Museum. The center is located at 10185 North Stelling Road. Telephone: 408-777-3120.
Cupertino Sports Center
The Sports Center features 17 tennis courts, two racquetball courts, complete locker room facilities, teen center, and a fully-equipped fitness center featuring free weights, strength training equipment, and cardio equipment.
The center is located at 21111 Stevens Creek Boulevard. Telephone: 408-777-3160.
Cupertino Senior Center
The Senior Center provides opportunities for adults over the age of 50, including volunteering and various classes such as exercise, computer, English as a second language, and cultural and special interest. The center also coordinates trips and socials. The Senior Center is located at 21251 Stevens Creek Boulevard. Telephone:
408-777-3150.
Civic Center and Library
The Civic Center complex has a 6,000 square foot Community Hall, plaza with fountain, trees, and seating areas. City Council meetings, Planning Commission sessions, and Parks and Recreation Commission sessions are held in the Community Hall. The center is located at 10350 Torre Avenue. Telephone: 408-777-3120.
The Cupertino Library continues to be one of the busiest libraries in the Santa Clara County Library system.
The library is located at 10800 Torre Avenue. Telephone: 408-446-1677.
McClellan Ranch Preserve
McClellan Ranch is an 18-acre preserve that houses the original ranch house, milk barn, livestock barn, two historic buildings including the Baer's Blacksmith Shop and the old water tower from the Parish Ranch, Environmental Education Center, and Community Gardens. The preserve is located at 22221 McClellan Road.
Telephone: 408-777-3149.
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Things To Do and See
Euphrat Museum of Art
The highly regarded Euphrat Museum of Art, at its new location next to the new Visual Arts and Performance Center at De Anza College, presents one-of-a-kind exhibitions, publications, and events reflecting the rich diverse heritage of our area. The Museum prides itself on its changing exhibitions of national and international stature emphasizing Bay Area artists. Museum hours are 10 a.m. – 3 p.m. Monday through Thursday.
Telephone: 408-864-5464
Euphrat Museum of Art
Apple Park Visitor Center, Store & Café
A state-of-the-art Visitors Center, Observation Deck, flagship retail store, and café are open to the public seven days a week. The Visitor Center is located at 10600 N Tantau Avenue.
Free parking is available. For more information, visit the website at www.apple.com/retail/appleparkvisitorcenter or call 408-961-1560.
Fujitsu Planetarium
The Fujitsu Planetarium on the De Anza College campus is a must-visit Cupertino facility for stargazers. It hosts a variety of planetarium shows and events, including educational programs for school groups and family astronomy evenings. For more information, visit the website at hWp://planetarium.deanza.edu or call 408-864- 8814.
Cupertino Historical Society
The Cupertino Historical Society was founded in 1966 by a group of 177 longtime residents and is dedicated to the preservation and exhibition of the city’s history. Their museum, located at the Quinlan Community Center, develops and expands the learning opportunities that it offers to the ethnically diverse community of the City of Cupertino. Telephone: 408-973-1495.
Farmers’ Markets
There are two farmers’ markets located in the City of Cupertino. One is held on Fridays from 8:30 a.m. to 1:00 p.m. at Creekside Park located at 10455 Miller Avenue, and the other is held every Sunday from 9:00 a.m. to 1:00 p.m. at the Senior Center/Memorial Park parking lot, behind 21251 Stevens Creek Blvd.
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California History Center
The California History Center and Foundation is located on the De Anza College campus. The center has published 37 volumes on California history and has a changing exhibit program. The center’s Stocklmeir Library Archives boast a large collection of books, pamphlet files, oral history tapes, videotapes, and a couple of thousand student research papers. The library’s collection is for reference only. Heritage events focusing on California’s cultural and/or natural history are offered by the center each quarter. For more information, call 408-864-8987. The center is open September through June, Tuesday through Thursday, from 9:30 a.m. to noon and 1:00 p.m. to 4:00 p.m.
Local Wineries
The Santa Cruz Mountains have played a pivotal role in the history of winemaking in California, with roots going back over 100 years, and including legendary winemakers such as Paul Masson, Martin Ray, David Bennion (Ridge), and David Bruce. The Santa Clara Valley Wine Trail features wineries in the southern portion of Santa Clara County, including Cupertino.
Take some time to enjoy Cupertino-based wineries: Fellom Ranch Vineyards, Naumann Vineyards, PiccheWi Winery, R&W Vineyards, Ridge Vineyards, and Vidovich Vineyards, as well as the breathtaking scenery of the surrounding foothills.
Photo courtesy of Ridge Vineyards
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Financial Policies
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Annual Budget Process
The City Council annually adopts a budget by resolution for the upcoming fiscal year. The adopted budget – a policy document, financial plan, operations guide, and communications tool – authorizes expenditures for the activities and funds specified in the budget. It is the basis of the City’s financial planning and control.
The City’s annual budget follows a July 1 to June 30 fiscal year. However, the budget process continues throughout the year, including phases of:
Development
Proposal
Adoption
Monitoring
Amendment
Carryover
Budget development begins in December with the base budget, where ongoing operational costs are reviewed and adjusted. The base budget does not include any one-time initiatives. Departments must justify all new costs each year.
In March, departments develop budget proposals for new ongoing or one-time initiatives. Department budget proposals are reviewed by Finance staff using data on current and prior year trends. Budget decisions are guided by a long-term financial forecast. The financial forecast helps identify revenue and expenditure trends that may have an immediate or long-term effect on the City’s fiscal health.
The City Manager reviews the proposals with the Director of Administrative Services and department staff and approves proposals to be included in the Proposed Budget. The Proposed Budget is published by May 1.
In May, staff presents the Proposed Budget to City Council at a proposed budget study session. Boards, Commissions, community organizations, and the public can comment on the budget. During the study session, City Council provides comments, questions, and recommendations to staff regarding the Proposed Budget.
In June, City Council considers the Proposed Budget at a public hearing. Staff presents an updated Proposed Budget and responds to City Council’s questions and recommendations from the study session. Then, City Council deliberates and votes to adopt the budget. By adopting the budget, City Council authorizes expenditures for the activities and funds specified in the budget. The adopted budget takes effect on July 1.
The following chart illustrates the City’s budget reporting cycle. In addition to the annual proposed and adopted budget, staff reports to City Council quarterly. Quarterly reports update City Council on any changes from July 1 through the end of the quarter. Quarterly reports help:
Forecast year-end results;
Demonstrate the City is on track to end the year within budget; Update City Council on any changes to the budget; and
Amend the budget to account for any unforeseen changes.
If amendments to the budget are required outside of this cycle, staff can seek approval through the budget amendment process (see next section).
The following chart illustrates the City’s budget reporting cycle.
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Budget Reporting Cycle
Budget Amendment Process
ANer the budget is adopted, the City enters the budget monitoring phase. Throughout the year, departments monitor their budgets to ensure spending does not exceed the budget.
Adjustments to expenditures within or between departmental budgets are accomplished on an as-needed basis administratively throughout the year. The City Manager and Department Heads can transfer funds between their accounts and/or programs as needed.
City Council approval is required for additional appropriations from fund balances or from new revenue sources.
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Structure of City Finances
Cost Accounting
The City of Cupertino has five internal service funds: Innovation & Technology, Vehicle & Equipment Replacement, Workers’ Compensation, Compensated Absences & Long-Term Disability, and Retiree Medical, whose costs are allocated to City departments. Fund costs are allocated to user departments or operating funds based on salaries, equipment and soNware purchase price, actuarial studies, and actual and projected service level. Please view the Cost Allocation Plan and Changes to the Internal Service Fund section of this document for details.
Other employee fringe benefits such as medical, dental, life insurance, and pensions are directly added to department costs as a percentage of salaries. Staff salary and benefit costs are split among departments and related funds based on the anticipated percentage of time spent working in various departments.
Overhead Cost Allocation
All overhead costs are allocated to the appropriate program within the limits of local, State, and federal laws.
Beginning in FY 2013-14, overhead/indirect costs associated with service providers in the General Fund were allocated based on a Cost Allocation Plan (CAP).
The City utilizes a two-step method (double step down method). In the first step, the costs of service programs are allocated to other service programs and receiving programs. In the second step, the total costs of the service programs are allocated to the receiving programs. Costs are allocated to programs based on their use of services. Revenues are allocated directly to the program providing the service.
Basis of Budgeting
Basis of Budgeting refers to the method used to recognize revenues and expenditures in the budget. For the City of Cupertino, the basis of budgeting is the same basis used for accounting.
The Governmental Funds, including the General, Capital, Debt Service, and Special Revenue funds, use a modified accrual basis. The modified accrual basis uses a current financial resources measurement focus. As a result, only current assets and current liabilities and deferred outflows of resources, and deferred inflows of resources generally are included. Under the modified accrual basis, revenues are recognized when they become “susceptible to accrual”, which means they are both measurable and available. Measurable means the transaction can be determined. Available means collectible within the current period or soon enough thereaNer to be used to pay liabilities of the current period. For example, revenues from property taxes are determined to be available if collectible within 60 days.
The Proprietary Funds, including Enterprise and Internal Service Funds, use a full accrual basis. The full accrual basis uses an economic resources measurement focus. Under the accrual basis of accounting, revenues are recognized when they are earned and expenses are recognized when incurred, regardless of the timing of related cash flows. For example, property taxes are recognized as revenue in the year for which they are levied.
Grants are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
The budget is split into ten departments: Council and Commissions, Administration, Law Enforcement, Innovation and Technology, Administrative Services, Parks and Recreation, Community Development, Public Works, Non-Departmental (includes budgets that are not aWributable to any specific division), and Capital Improvement Program (presented separately but will be included in the Adopted Budget). These departments are further split into divisions and then programs. The programs within the divisions are balanced at the department level within a given fund.
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Annual Comprehensive Financial Report (ACFR)
The Annual Comprehensive Financial Report (ACFR) is prepared by Crowe, LLP, the City’s Auditors and according to “Generally Accepted Accounting Principles” (GAAP).
Citizen Participation
The budget study session and budget hearings are public meetings where citizens are given the opportunity to comment on the budget. The public can also provide feedback to two Council sub-commiWees, the Fiscal Strategic Planning and Audit CommiWees. Additionally, the City utilizes OpenGov, an interactive financial transparency portal, to provide the public with the opportunity to view the City's financial and budgetary information in real-time.
On April 21, 2022, the City hosted its third annual community budget workshop, "Budget & Bites." The Budget Team hosted the event in collaboration with the City's Youth Activity Board. The event taught residents how to use OpenGov, the City's interactive financial transparency portal, to explore the City's financial data.
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Fund Structure
For accounting purposes, a state or local government is not treated as a single, integrated entity. Rather, a government is viewed as a collection of smaller separate businesses known as ‘funds’. Fund accounting is an accounting system emphasizing accountability rather than profitability. In this system, a fund is a selfbalancing set of accounts, segregated for specific purposes in accordance with laws and regulations or special restrictions and limitations.
The City’s finances are structured in a variety of funds that are the basic accounting and reporting entities in governmental accounting. The funds that comprise the FY 2020-21 budget are grouped into two major categories: Governmental Funds and Proprietary Funds. The purpose of each of the various funds within these two categories is described below:
Governmental Funds
Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City’s expendable financial resources and the related liabilities (except those accounted for in the Proprietary Funds) are accounted for through governmental funds. Governmental funds include Tax Supported Funds, Special Revenue Funds, and Federal Grant Funds. They are accounted for under the modified accrual basis of accounting.
Tax Supported Funds
Tax Supported Funds include the General and Capital Projects Funds. The General Fund is the primary operating fund for governmental services. The Capital Projects Fund is utilized for the acquisition and/or construction of major capital facilities.
Tax Supported Funds Purpose
General Funds
General The General Fund is used to pay for core services such as public safety, parks and recreation, planning and community development, public works, and a host of other vital services. The revenue used to pay for these services comes primarily from local taxes such as property tax and sales tax, franchise fees, charges for services, and a variety of other discretionary sources.
Capital Projects Funds
Capital Improvement
Projects
This fund pays for the acquisition and/or construction of major capital facilities.
Stevens Creek Corridor Park
Capital Projects
This fund pays for the design and construction of the Stevens Creek Corridor Park projects.
Special Revenue Funds
Special Revenue Funds are a fund type used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds include the Park Dedication, FY 2022-23 Proposed Budget Financial Policies 81
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Transportation, Storm Drain, Environmental Management/Clean Creeks funds, and Housing and Community Development.
Special Revenue Funds Purpose
Storm Drain Improvement This fund pays for the construction and maintenance of storm drain facilities, including drainage and sanitary sewer facilities.
Park Dedication This fund pays for the activity granted by the business and professions code of the State of California in accordance with the open space and conservation element of the City’s General Plan.
Environmental
Management/Clean
Creek/Storm Drain
This fund pays for all activities related to operating the Non-Point Source pollution program.
Transportation This fund pays for expenditures related to the maintenance and construction of City streets.
Housing & Community
Development
This fund pays for the Federal Housing and Community Development Grant Program activities administered by the City. This fund also pays for activities related to the Below Market Rate Housing Program.
Federal Grant Funds
Federal Grant Funds include the Community Development Block Grant program. The Community Development Block Grant is a federally funded program for housing assistance and public improvements.
Federal Grant Funds Purpose
Community Development
Block Grant
This fund pay for activities related to the Community Development Block Grant (CDBG).
Proprietary Funds
Proprietary Funds are used to account for “business-type” activities. Proprietary Funds include Enterprise Funds and Internal Service funds. They are accounted for under the full accrual basis of accounting.
Enterprise Funds
Enterprise Funds are set up for specific services that are funded directly by fees charged for goods or services.
Enterprise Funds include the Resource Recovery, Sports Center, Blackberry Farm Golf Course, and Recreation funds.
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Enterprise Funds Purpose
Resource Recovery This fund pays for operating costs related to the collection, disposal, and recycling of solid waste performed under a franchise agreement with Recology.
Blackberry Farm Golf Course This fund pays for operating costs related to the Blackberry Farm Golf Course.
Sports Center This fund pays for operating costs related to the Sports Center.
Recreation Programs This fund pays for operating costs related to the City's community centers and park facilities.
Internal Service Funds
Internal Service Funds are used for areas where goods or services are provided to other departments or governments on a cost-reimbursement basis. Internal Service Funds include the Innovation & Technology, Vehicle and Equipment Replacement, Workers’ Compensation, Compensated Absences & Long-Term Disability, and Retiree Medical funds.
Internal Service Funds Purpose
Innovation & Technology This fund pays for all technology-related expenses for the citywide management of information services. This fund pays for the replacement of existing hardware and soNware and the funding of new hardware and soNware needs city-wide. Equipment is depreciated based on the acquisition or historical costs for the useful life of the asset using the straight-line method.
Workers' Compensation This fund pays for claims and insurance premiums related to workers' compensation.
Vehicle/Equipment
Replacement
This fund pays for the purchase and maintenance of fleet and general equipment having a value greater than $5,000 and an expected life of more than one year. Assets are depreciated based on the acquisition or historical costs for the useful life of the asset and using the straight-line method.
Compensated Absences &
Long-Term Disability
This fund pays for liabilities associated with employees retiring or leaving service and claims and premiums associated with long-term disability.
Retiree Medical This fund pays for Other Post-Employment Benefits (OPEB) costs.
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Revenue Policies
PURPOSE
To establish revenue policies that assist the City in striving for and maintaining a diversified and stable revenue system to prevent undue or unbalanced reliance on any one source of funds. This revenue diversity will shelter the City from short-run fluctuations in any one revenue source.
SCOPE
All revenue sources across all funds.
POLICY
To the extent possible, maximize investment yield while maintaining a high level of liquidity for the City’s anticipated capital costs;
Identify and recommend sources of revenue necessary to maintain the services desired by the community and to maintain the City's quality of life;
Perform ongoing evaluations of existing sources of revenue to maximize the City's revenue base; Recover costs of special services through user fees;
Pursue full cost recovery and reduce the General Fund fee subsidy to the degree feasible; Allocate all internal service and Cost Allocation Plan charges to appropriate user departments; and Monitor Enterprise activities remain self-supporting in the long term.
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Expenditure Policies
PURPOSE
To establish expenditure control policies through the appropriate internal controls and procedures.
Management must ensure expenditures comply with the legally adopted or amended budget.
SCOPE
All expenditure categories across all funds.
POLICY
Each Department or Division Manager will be responsible for the administration of their department/division budget. This includes accomplishing the goals and objectives incorporated into the budget and monitoring each department/division budget for compliance with spending limits; Accurately charge expenditures to the appropriate chart of accounts; Maintain operating activities at levels which are offset by revenues; The City will make every effort to control expenditures to ensure City services and programs provided to its citizens and tax payers are cost effective and efficient; Evaluate expenditures at the department and project levels to ensure control; Before the City purchases any major asset or undertakes any operating or capital arrangements that create fixed assets or ongoing operational expenses, the implications of such purchases or arrangements will be fully determined for current and future years;
All compensation planning and collective bargaining will include an analysis of the total cost of compensation which includes analysis of salary increases, health benefits, pension contributions, fringe benefits and other personnel costs. The City will only propose operating personnel costs which can be sustained by ongoing operating revenues;
Reduce costs and improve productivity through the use of efficiency and effective measures; and Structure debt financing to provide the necessary capital while minimizing future debt service costs.
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Capital Improvement Policy
PURPOSE
To establish a Capital Improvement Policy to assist in future planning.
SCOPE
All anticipated Capital Improvement Projects for the current fiscal year plus four additional fiscal years.
POLICY
The City will prepare and update a five year Capital Improvement Plan (CIP) encompassing all City facilities; Projects included in the CIP will have complete information on the need for the project (project justification), description and scope of work, total cost estimates, future cost estimates, future operating and maintenance costs and how the project will be funded;
An objective process for evaluating CIP projects with respect to the overall needs of the City will be established through a priority ranking of CIP projects. The ranking of projects will be used to allocate resources to ensure priority projects are completed effectively and efficiently; Changes to the CIP such as addition of new projects, changes in scope and costs of a project or reprioritization of projects will require City Manager and City Council approval; The City will maintain its physical assets at a level adequate to protect the City’s capital investment and to minimize future operating maintenance and replacement costs. The City recognizes that deferred maintenance increases future capital costs, thus placing a burden on future residents. Therefore, the budget will provide for adequate maintenance and the orderly replacement of capital plant and equipment from current revenues when possible;
The City will determine the least costly funding method for its capital projects and will obtain grants, contributions and low cost state or federal loans whenever possible; The City will utilize “pay-as-you-go” funding for capital improvement expenditures considered recurring, operating or maintenance in nature. The City may also utilize “pay-as-you-go” funding for capital improvements when current revenues and adequate fund balances are available or when issuing debt would adversely affect the City’s credit rating; and
The City will consider the use of debt financing for capital projects under the following circumstances:
When the project’s useful life will exceed the terms of the financing When resources are deemed sufficient and reliable to service the long-term debt When market conditions present favorable interest rates for City financing When the issuance of debt will not adversely affect the City’s credit rating and debt coverage ratios.
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Information Technology Replacement and
Capitalization Policy
PURPOSE
The purpose of this policy is to establish guidelines for replacing and capitalizing technology equipment and systems. Replacement is indicated when a product has run its useful life and updating/upgrading is no longer an option. Capitalization of equipment requires the set aside of funding for future replacement.
Generally, technology equipment with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized. SoNware with an expected life of at least 7 years or a cost of over $10,000 shall also be capitalized. Software-as-a-Service (SaaS) contracts are not capitalizable and are expensed as incurred.
Technology upgrades are determined by the Innovation Technology Department and user departments based on functionality, vendor support, and industry standards.
SCOPE
This policy covers the City of Cupertino:
network infrastructure (routers, switches, firewalls, security appliances); server infrastructure (files servers, database servers, mail servers, web servers, etc); user laptops and workstations; mission-critical systems, telephone system (telephone equipment not already listed previously);
desktop software;
enterprise software;
workgroup software; and
broadcast video and audiovisual equipment.
Cell phones, printers, and tablet devices are not covered by this policy as these items do not meet the minimum criteria for capitalization. Replacement of these items are at the discretion of the Innovation Technology Department in concert with the user Department.
POLICY
All technology shall be replaced according to the following:
Network infrastructure (routers, switches, firewalls) shall be replaced when no longer functional, as determined by the Innovation Technology Department Division (IT), or when parts or support are no longer available from the manufacturer. Replacement needs will be determined by IT annually as part of the operating budget process. Network infrastructure with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized.
Server infrastructure shall be replaced when it is no longer functional (defined as not being able to meet its intended purpose), or when parts or support are no longer available from the manufacturer. These needs are evaluated annually by IT and user departments as part of the operating budget process. Servers are evaluated as they approach 3 years in service, and placed on the schedule accordingly. Server lifetime may be extended by the purchase of additional memory or disk. Server infrastructure with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized.
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User workstations shall be replaced, on average, aNer 4 years as is industry standard. Zero Client work stations shall be replaced, on average, every 8 years. IT will determine the need for specific replacements. User workstations shall not be capitalized as they do not meet the minimum criteria for capitalization.
Interoperable systems are defined as a group of interdependent and/or interoperable components that together form a single functional unit. These components may be interconnected by their structural relationships, their common functional behavior, or by both. Generally, for a system to be eligible for capitalization, the cumulative value of its components should be at least $5,000 and have a life expectancy of five years or more. A common example of such system would be a telephone system or network. Individual component or replacement costs are not capitalizable unless they are greater than $5,000 and increase the value of the asset.
Enterprise SoDware replacement shall be determined individually by IT and the end users. Only those large enterprise systems (on-site or on premise) with an expected life of at least 7 years or a cost of over $10,000 shall be capitalized. SaaS contracts are not capitalizable and are to be expenses as incurred.
Desktop Software is replaced/updated according to MicrosoN’s releases of Windows and Office. SoNware shall not be more than one version out of date to ensure functionality and vendor support. IT will generally wait at least 90 days aNer a new release to roll out new versions. Only soNware with an expected life of at least 7 years or a cost of over $10,000 shall be capitalized. Desktop software generally does not meet this criterion.
Broadcast Video and Audiovisual Equipment/Systems shall be repaired or replaced when determined no longer functional. Replacement will occur on average aNer 10 years. Broadcast video and audiovisual equipment/systems with a life expectancy of at least 5 years and a total cost of over $5,000 shall be capitalized.
Equipment that does not meet these criteria may still be capitalized if the item is a component of interoperable systems.
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Pension and Retirement Funding Policy
PURPOSE
To establish a policy for the funding of Retirement and Retiree health.
SCOPE
Retirement and Retiree Health costs citywide, across all funds.
POLICY
Fund all current pension liabilities on an annual basis; and Monitor certain health and dental care benefits for retired employees. Funding the liability for future retiree benefits will be determined by City Council action.
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Long Term Financial Stability Policies
PURPOSE
To establish a policy for Long Term Financial Stability SCOPE
All programs across all funds
POLICY
Ensure ongoing productivity through employee training and retention programs; Pursue consolidation of resources and activities with other agencies and jurisdictions where beneficial; Ensure financial planning flexibility by maintaining adequate fund balances and reserves; Provide for major maintenance and repair of City buildings and facilities on a timely basis; Provide for infrastructure asset preservation that maximizes the performance of these assets at minimum lifecycle costs; and Continually evaluate and implement long-term financial planning including technology automation, multiple year capital improvement programs, revenue and expenditure forecasting, automating and streamlining service delivery, stabilizing and repositioning revenue sources, and decreasing expenditures and risk exposure.
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Committed, Unassigned Fund Balance, and Use of One
Time Funds Policy
PURPOSE
To establish assigned and unassigned fund balance and one-time use policies.
SCOPE
The General Fund and Capital Funds.
POLICY
To maintain sufficient commiWed and unassigned fund balance (General Fund only) in each fund for the ability to meet the following economic uncertainties:
Economic Uncertainty – $24,000,000 and represents two months of General Fund (GF) expenditures excluding transfers out plus a two year drop in total general fund revenue of 13% or approximately 1.5 months, excluding the use of reserves. Transfers out are primarily used to fund Capital Projects and do not represent on-going expenditures. This assignment will change from year to year based on budgeted general fund expenditures and revenues.
Mitigate short-term economic downturns and volatility in revenues (2 years or less) Sustain city services in the event of an emergency
Meet requirements for debt reserves
Meet operating cash flow requirements as a result of delay in the receipt of taxes, grant proceeds and other operating revenues
PERS – $20,491,004 and represents the initial investment into the City’s Pension Rate Stabilization Program (PRSP). As a result of the significant increase in retirement costs based on the most recent actuarial forecast, the City elects to establish and fund a secondary pension trust to assist in stabilizing the potential impact of pension cost volatility on the City’s operating budget. Annual contributions subsequent to the initial funding are determined by calculating the difference between CalPERS’ current discount rate and a more conservative rate determined by the City. This difference is to be transferred to the pension trust and to be used solely for the benefit of members in the plan.
Funds in this trust are technically “restricted” under Governmental Accounting Standards Board (GASB) Statement No. 54 in that the funds are legally restricted to be used for retirement costs; however, the timing for which these funds may be used is only at the discretion of City Council.
Capital Projects – $10,000,000 and represents the amount of General Fund resources readily available to fund future capital projects in the City’s Capital Improvement Program (CIP). The City’s Capital Projects Funds has a $5,000,000 reserve threshold; however, establishing a secondary reserve in the City’s General Fund will enable more efficient and accurate short- and long-term capital budgeting and planning.
Sustainability Reserve – Cupertino’s Sustainability Division oversees the City’s Climate Action Plan (CAP), which defines strategies to reduce greenhouse gas emissions, and provides residents, businesses and schools with programs and services focused on energy efficiency, renewable energy, water conservation, alternative transportation and other sustainable actions. The City receives rebates for projects that successfully meet the FY 2022-23 Proposed Budget Financial Policies 91
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eligibility requirements such as energy or water efficiency. If the rebates were not initially budgeted, they are categorized as commiWed fund balance in the General Fund. The purpose of this reserve is to help support future sustainability projects/programs.
Unassigned – $500,000 and represents 1% of the total general fund operating budget. This assignment may change from year to year based on budgeted general fund expenditures.
Absorb unanticipated operating needs that arise during the fiscal year that were not anticipated during the budget process
Absorb unexpected claims or litigation settlements
Capital Improvement – $5,000,000 and represents average dollars spent for capital projects in the last three fiscal years. This assignment may change from year to year based on actuals dollars spent on capital projects and anticipated future capital project needs.
Meet future capital project needs so as to minimize future debt obligations The City shall not use fund balances/reserves in lieu of revenues to pay for ongoing expenses except as specifically provided in the City’s reserve policy.
The chart below summarizes reserve policy levels as described above:
Funding Priority Reserve Reserve Level Escalator¹ Description
GENERAL FUND
1 Economic Uncertainty $24,000,000
GF Budgeted
Operating
Expenditures² GF
Budget Revenue³
For economic
downturns and major
revenue changes.
2 PERS $20,491,004
Budgeted
Citywide
Retirement Costs
For pension cost
increases.
3 Capital Projects $10,000,000 None For future capital
projects funding.
4 Sustainability Reserve $127,891 GF Budget
Revenue³
For future
sustainability
projects/programs.
5 Unassigned $500,000
Budgeted GF
Operating
Expenditures²
For mid-year budget
adjustments and
redeployment into the
five year budget.
CAPITAL PROJECTS FUNDS
6 Capital Improvement $5,000,000 None Reserves set aside for future capital projects.
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¹ Rounded to the nearest hundred thousand
² Excludes Transfers Out
³ Excludes the use of reserves
Changes to CommiHed Fund Balance – All reserves listed in this policy, with the exception of the PERS restricted reserve, are classified as CommiWed Fund Balance under GASB Statement No. 54. CommiWed fund balance is comprised of amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. Changes to commiWed fund balances must be approved by City Council. This policy will be reviewed annually as part of the budget process.
Replenishment process – Should the City need to utilize any of the commiWed fund balances listed in this policy, a recommendation will be brought to City Council for approval and a plan to replenish the commiWed balance will be developed in conjunction with its use.
Excess – Funding of these reserves will come generally from one-time revenues, annual net income, and transfers from other reserves that exceed policy levels. They will be funded in the following priority order with any remaining funds to be placed in the Capital Reserve:
1) Economic Uncertainty
2) PERS
3) Capital Projects
4) Sustainability Reserve
5) Unassigned
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Investment Policy
The City Council annually updates and adopts a City Investment Policy that is in compliance with State statutes on allowable investments. By policy, the Audit CommiWee reviews the policy and acts as an oversight commiWee on investments. The policy directs that an external auditor perform agreed-upon procedures to review City compliance with the policy. The full policy is expected to be presented to the City Council on May 17, 2022.
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Community Funding Policy
PURPOSE
The City of Cupertino currently provides funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. The policy provides a framework for the City's Community Funding Grant Program and guides the administration of the program and decision-making process. It also provides guidance on key aspects of the City's Community Funding Grant Program processes including: Eligibility, Evaluation Criteria, Restrictions/Guidelines, and Procedure.
SCOPE
All requests for funding must comply with this policy.
POLICY
The City has established the Community Funding Grant Program, subject to availability of funds, with a range of $70,000 to $90,000 in total funding available. Community Funding Grants shall not exceed $20,00 per applicant, per year. City Council will determine the organizations to be awarded funds through the Community Funding Grant Program. City Staff shall review applications for completeness and review the qualifications and accuracy based upon the eligibility criteria set forth below. In all cases, the City reserves the right to reject any and all applications in the event staff identifies a potential conflict of interest or the appearance of a conflict of interest. Submission of an application in no way obligates the City to award a grant and the City reserves the right to reject any or all applications, for any reason, at any time.
Eligibility
To receive consideration for a Community Funding Grant, grant requests must:
Be made or sponsored by a 501(c)(3) non-profit organization with experienced members capable of implementing and managing the program/project/event.
Identify how the funds will be used to benefit the Cupertino community.
Be awarded only once per project
For specific needs, not ongoing, operational costs.
Have more than 75% of the requested funds allocated for direct service costs versus administrative costs.
Be complete and submitted by the application deadline.
Evaluation Criteria
Impact on and benefit to the Cupertino community
Community need for the program/project/event
Alignment with City mission and values
Uniqueness of the program/project/event
Qualifications and experience of the organization and its members Reasonable cost
Demonstrated effort to secure funding from other sources and/or establishing partnerships with other community or city organizations Clarity, completeness, and accuracy of grant application Past performance and compliance with requirements if a recurring applicant Applications will be sorted into two categories:
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New applicants
Past recipients
Applications in each category will be evaluated using a tiered structure based on the dollar amount requested for award as follows:
< $999.99
$1,000.00 - $4,999.99
$5,000.00 – $9,999.99
$10,000.00 - $20,000.00
Restrictions/Guidelines
An organization that is applying for multiple grants shall only submit one application.
Proceeds generated from the funded activity may only be used for the conducted activity.
If requested, recipients must provide full financial statements for the organization.
Admission to or participation in the event must be "free of charge" for Cupertino residents unless stated in the application and approved by Parks & Recreation Commission.
If an applicant makes a grant request directly to a member of the City Council, whether individually or as a group, the Council shall refer the applicant to the Parks and Recreation Department for a Grant application to be reviewed in accordance with this policy.
Grant recipients shall acknowledge the City contribution in formal promotional materials and efforts related to the funded activity. Any use of the City logo must be approved by the City’s Communications Officer.
Procedure
1. Applicants submit timely and complete grant applications by February 1.
2. City Staff reviews application for completeness and compliance eligibility.
3. Applications will then be forwarded to the Parks and Recreation Commission to be evaluated and sorted into the tiered funding structure. All applicants will be notified and invited to aWend the Parks and Recreation Commission Meeting where their applications will be discussed. This meeting typically takes place in Spring.
4. City Council will make the final decision on grant amounts for each applicant as part of the budget adoption which typically happens in June. All applicants will be notified and invited to aWend the City Council Meeting where their applications will be discussed.
5. Grant recipients shall submit a wriWen report to the Parks and Recreation Department to show proof that the grant funds have been spent in the manner and for the purposes stated on the application, including information about the number of persons served and other results that benefit Cupertino.
Due by the 15th business day of July following the Fiscal Year in which grant funds are disbursed.
Failure to submit a wriWen report by the July deadline could result in the loss of grant funding eligibility in the future.
Applicants will be expected to reimburse the City any funding awarded and not used for their program/project/event.
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Appropriations and Legal Debt Limit Margin
Gann Appropriations Limit
In 1979, California voters approved Proposition 4, the Gann Initiative, and added Article XIIIB to the California State Constitution. Article XIIIB mandates a limit on the amount of proceeds of taxes that state and local governments can receive and appropriate (authorize to spend) each year. The purpose of this law is to limit government spending by puWing a cap on the total proceeds of taxes that may be appropriated each year.
Proposition 111 and SB 88, approved by California voters in June of 1990, offered cities more flexibility in choosing inflation and population factors to calculate the limit.
Appropriations Subject to Limit
The limit is different for each agency and changes annually. It is calculated by taking the amount of tax proceeds that were authorized to be spent in FY 1978-79 and adjusting for changes in inflation and population each subsequent year.
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Proposition 111 changed the way the limit is calculated and allowed a City to increase its limit annually in two ways:
By the percent change in per capita personal income in California or the percent change in the assessment roll the preceding year due to the addition of local non-residential new construction; or By the percent change in county or city population.
The City used the following factors from the California Department of Finance.
Price Factor
(A) Percent Change in California Per Capita Personal Income: 5.73% (Source: Dept of Finance, California)
Population Factor
(B) Percent Change in County Population: -0.56%
(Source: Dept of Finance, California)
(C) Percent Change in City Population: -0.99%
(Source: Dept of Finance, California)
The City multiplied the FY 2020-21 appropriations limit by Price Factor (A) of 5.73% and Population Factor (B) of -0.56% to calculate the FY 2021-22 appropriations limit, as shown below:
FY 2020-21 Appropriations Limit $109,062,934
Price Factor (A) 1.0573
Population Factor (B) 0.9944
FY 2021-22 Appropriations Limit $114,666,491
The City’s FY 2021-22 appropriations limit was $114,666,491, $5.6 million or 5.1% higher than the FY 2020-21 limit of $109,062,934. The California Department of Finance will publish the price and population data to calculate the City’s FY 2022-23 appropriations limit in May 2022. As a result, the FY 2022-23 appropriations limit will not be known until May 2022 and will be included in the Adopted Budget.
Legal Debt Margin
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when the assessed valuation was based upon 25% of market value. Effective FY 1981-82, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computation shown below reflects a conversion of assessed valuation data for FY 2020-21 from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the State.
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Description Amount Formula
Secured Property Assessed Value, Net of Exempt Real Property (1) $27,083,468,890 Adjusted Valuation - 25% of Assessed Valuation (2) $6,770,867,223 (1) x 25% Debt Limit - 15% of Adjusted Valuation $1,015,630,083 (2) x 15% Total City Bonded Debt (3) $19,900,000
Less: Certificates of Participation Not Subject to Debt Limit (4) $(19,900,000) Amount of Debt Subject to Limit - (3) - (4)
Legal Debt Margin $1,015,630,083
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Financial Schedules
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Financial Overview by Fund
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Flow of Funds Chart (Sankey)
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General Fund Contribution Schedule
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Fund Balance Report
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General Fund Summary
The General Fund is the City’s primary operating fund. It accounts for basic services such as public safety, public works, planning and development, park maintenance, code enforcement, and the administrative services required to support them. The fund generates revenue from the City’s discretionary funding sources (e.g., property tax, sales tax, transient occupancy tax, and utility tax). As a rule, general fund resources are used only to fund operations that do not have other dedicated (restricted) funding sources. Operations that rely heavily upon non-general fund resources, such as street maintenance, solid waste collection, and recreation are accounted for in other funds. Information on these funds may be found in the Other Funds section of this document.
For FY 2022-23, General Fund revenue estimates are $93.7 million, a $4.0 million, or 4.5%, increase from the FY 2021-22 Adopted Budget, mostly due to an increase in sales tax and property tax.
General Fund expenditure estimates are $93.0 million, a $3.2 million, or 3.6%, increase from the FY 2021-22 Adopted Budget. The General Fund’s ending fund balance is projected to increase by 1.1% from the FY 2021- 22 Adopted Budget ending fund balance. This is due to a projected increase in sales tax, property tax, and transient occupancy taxes offset by a projected decrease in utility user's tax.
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General Fund Revenues
Estimates for the FY 2022-23 beginning fund balance and General Fund revenue sources are based upon a careful examination of collection history and paWerns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. FY 2022-23 revenue estimates are based on the anticipated increase or decrease in activity and receipts over the current year. Each source of revenue can be influenced by external (outside of the City's control) and/or internal factors. The FY 2022-23 revenue estimates are built on the assumption of the City moving toward a recovery from the COVID-19 pandemic.
As shown in the chart below, FY 2022-23 revenues are estimated at $93.7 million, a 4.5% increase over the FY 2021-22 Adopted Budget.
Note: Revenues from Investment Fund (Fund 130) not included in table The majority of Cupertino's General Fund operating revenues are generated by sales taxes (34%) and property taxes (32%), followed by charges for services (12%) and Transient Occupancy Tax (5%). The chart on the next page illustrates the sources of General Fund revenue by category.
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The FY 2022-23 General Fund revenue estimates are discussed by category in the material that follows.
Sales and Use Tax, commonly referred to as just the "sales tax" has two components: (1) an excise tax imposed on retailers for the privilege of selling tangible personal property, and (2) an excise tax imposed on a person and applies to purchases from out-of-state vendors that are not required to collect tax on their sales. The proceeds of sales and use taxes imposed within the boundaries of Cupertino are distributed by the State to various agencies, with the City of Cupertino receiving one percent, as shown in the chart to the right. Staff will continue to monitor competing interests for the City's ¼ cent sales tax imposed on local governments as a FY 2022-23 Proposed Budget Financial Schedules 112
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potential new source of revenue for affordable housing and transportation. If the City decides to include a similar ballot measure at a future election, subject to voter approval, the City has an opportunity to retain local control over the additional sales tax proceeds.
The City's sales tax revenues are generated from five principal economic categories: business-to-business 53% (includes electronic equipment and soNware manufacturers and distributors), state and county pools 32%, restaurants and hotels 7%, general consumer goods 4%, and fuel and service stations and other 1.6%.
Our two largest sales taxpayers in the business-to-business category represent a large part of that sector and can significantly affect sales tax trends. Corporate and business technology spending drove growth in this sector in FY 2019-20 and FY 2020-21 as businesses transitioned to remote work during the pandemic. Businessto-business sales tax is expected to decrease as pandemic restrictions end and the State transitions to a new normal. Given these trends, the City's FY 2022-23 sales tax revenue is expected to be lower than the historic highs seen in FY 2020-21.
Sales tax receipts increased by 26.1% in FY 2016-17 due to a one-time $3.5 million payment related to the closeout of the triple flip and took a slight dip of 2.8% in FY 17-18. Additionally, the City's sales tax revenues spiked to historic highs in both FY 2019-20 and FY 2020-21; however, the City is considering it one-time. Sales tax revenues are estimated to generate $32 million in FY 2022-23, up 14.7% from the FY 2021-22 Adopted Budget.
The swiN reaction by consumers and businesses to the outbreak of COVID-19 in 2020 created significant fluctuations for the City's industry groups. While restaurants and hotels, general consumer goods, and automotive industry groups were severely impacted, the City's business-to-business and County pool allocation share increased substantially. This was brought on by shelter-in-place mandates throughout the State, which reduced sales tax revenues for restaurants and brick and mortar retail; thereby increasing online sales. Additionally, the conversion to remote work increased the demand for computer and electronic equipment, which also increased the City's sales tax revenues. As the State continues toward recovery and businesses continue their opening, it is anticipated that the City's restaurant and hotels, general consumer goods, and automotive industry groups will recover and increase. However, these increases will only slightly mitigate the anticipated declines in the City's business-to-business and County pool share allocation as online sales fall from recent historic highs. Although there is much uncertainty about the City's sales tax revenues, the City anticipates positive annual sales tax increases in the future. As information and data continue to become available, staff will bring forth updates and adjustments regularly as necessary.
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Under current law, property is assessed at actual full cash value with the maximum levy being 1% of the assessed valuation. The assessed value of real property that has not changed ownership can be adjusted by the change in the California Consumer Price Index (CCPI) up to a maximum of 2% per year. Property that changes ownership, property that is substantially altered, newly-constructed property, State-assessed property, and personal property are assessed at the full market value in the first year and subject to the two percent cap, thereafter.
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In 1978, voters approved the passage of Proposition 13, which froze property tax rates and limited the amount that rates could increase each year. Cupertino had one of the lowest property tax rates in Santa Clara County receiving only $0.02 for every $1.00 paid. Subsequent legislation required Counties to provide "no/low tax" cities with a Tax Equity Allocation (TEA) equal to 7% of the property tax share, however, the property tax distribution for the no/low tax cities in Santa Clara County was limited to 55% of what other TEA cities in the State received.
Property Tax
In FY 2006-07 West Valley cities won the passage of State legislation which restored a portion of TEA property tax revenue. This TEA change provided an additional $1.35 million in property tax annually and increased the City's share of property taxes to 5.6%. In conjunction with three other West Valley cities, Cupertino continued legislative efforts to gain parity with other no/low property tax cities in the State. In FY 2015-16, Governor Brown agreed to restore TEA revenues over a five-year period. In FY 2019-20 TEA was fully restored, and Cupertino kept approximately 7.0% of property tax revenues in FY 2019-20 compared to 6.72% in FY 2018-19.
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Additionally, Educational Revenue Augmentation Fund (ERAF), a mechanism enacted in July of 1992 by the State Legislature to shiN local tax revenues from cities, counties, and special districts to a State control ERAF, absorbs the shift-back of the TEA.
The City experienced a net taxable value increase of 3.5% for the 2021-22 tax roll. The bulk of the increase was due to increases in residential properties by $829 million, or 4.9%. This category makes up 61.1% of the net taxable value. Unsecured property tax decreased by $700 million, or 28.9%. This category makes up 6.0% of the net taxable value. Lastly, commercial property values increased by $573 million, or 7.6%. This category makes up 28.3% of the net taxable value. The effects of COVID-19 on housing prices in Cupertino and the Bay Area have yet to be seen. Although values continue to increase, staff will monitor the potential impact of long-term and even permanent remote work in the City and region.
Transient occupancy taxes (TOT) are levied on hotels and short-term room rentals located in the City at the rate of 12% of room revenues. In November 2011, 83% of voters approved increasing the rate from 10% to 12%. This rate increase contributed to the upward trend shown in the TOT Historical Trend graph. TOT is expected to end FY 2021-22 at $3 million, a 40% increase from FY 20-21 actuals. The anticipated increase is due to the recent relaxation of prior pandemic-based restrictions, allowing for increased travel and the return of employees to their places of work.
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TOT is projected to increase 66.7% in FY 2022-23. The City anticipates a "full-recovery" of TOT by FY 2023-24; however, the extent of the recovery is uncertain as the effect of teleworking on business travel remains to be determined. Currently, a recovery to a $7.5 million level is anticipated by FY 2023-24. With a Proposed Budget amount in FY 2022-23 of $5 million, it is clear the recovery in travel will gradual; however, staff are cautiously optimistic that this recovery could be accelerated through the continued roll out of the COVID-19 vaccination.
Staff will continue to monitor these activities and bring forward adjustments and recommendations as necessary.
The utility user tax (UUT), approved by voters in 1990, is assessed on gas, electricity, and telecommunication services provided within the City’s jurisdiction at a rate of 2.4% of billed charges. Revenues generated from this tax can be used for general City purposes.
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The City's tax rate is generally lower than that of other cities within Santa Clara County, as shown in the chart above. In March 2002, voters approved extending the utility tax's sunset date from 2015 to 2030. This extension corresponded with the extended debt maturity date resulting from the refinancing of debt for capital improvement projects. To maintain tax revenues currently received from telecom services, voters passed a measure in 2009 to update the ordinance to the changing technology in this area.
FY 2021-22, UUT revenues are estimated to increase 5.6% from FY 2020-21 actuals, with projected revenues of $3.2 million due to more revenue generated from utilities being used. Budgeted revenues are expected to decrease to $3 million in FY 2022-23. This revenue source will be monitored closely as the fiscal year progresses.
Franchise fees are received from cable, solid waste, water, gas, and electricity franchisees that operate in the City. The fees range from 1% to 12% of the franchisee's gross revenues depending on each agreement. As shown in the graph below, these revenues are relatively steady and not sensitive to economic fluctuations.
In FY 2021-22, franchise fee revenues are trending up 0.3% from FY 2020-21 actuals primarily due to an increase in electricity and water rates. Budgeted revenues are expected to remain at approximately $3 million for FY 2022-23. This revenue source will be monitored closely as the fiscal year progresses.
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Other taxes are comprised mainly of business license taxes, construction taxes, and property transfer taxes. As shown in the graph, business license and property transfer taxes are relatively steady while construction taxes are extremely volatile and sensitive to economic fluctuations.
With the influx of several major construction projects beginning in 2012, revenues began increasing. The largest of the projects included the Apple Park and Main Street developments. These projects coupled with a strong housing recovery created a record year for revenues in FY 2013-14. These revenues have since returned to historic levels. In FY 2022-23, these revenues are expected to increase by 43% from the prior year to $1.8 million.
This is primarily due to the projected increase from known 2021 property tax transfers. For years 2023-24 and later a growth rate is applied that is representative of the historical average rate of real property growth due to properties that have transferred ownership.
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This category accounts for charges to users of City services funded by the General Fund as well as internal City-wide overhead. The City aWempts to recover the cost of the services, including planning, zoning, and engineering permit processing for new property development as well as some recreation-related fees. As such, this revenue source is sensitive to economic fluctuations, as shown in the graph below. Apple Park and other large developments generated large one-time revenues in FY 2013-14 as well as FY 2015-16 and FY 2016-17.
In addition, beginning in FY 2013-14, enterprise funds, internal service funds, and special funds began charging for overhead services previously subsidized by the General Fund. Some internal strategic support services (Human Resources, Finance, City Clerk, etc.) also began charging internal departments for their services to capture the true cost of providing various programs and services within City operations. ANer a comprehensive cost allocation plan (CAP) was approved by Council in April 2016, internal strategic support services (City Council, Facilities, Maintenance, etc.) were included. In FY 2015-16, the City's administration changed its methodology for tracking developer deposits driven by increased developer activity and, as a result, both budgets for revenues and expenses were increased by anticipated deposit amounts leading to another large increase in revenue.
Current year actuals will come in higher compared to budgeted levels due to relaxation of prior pandemic restrictions, allowing for the continued reopening of City facilities. Increases in the City fees (expected to be effective July 2022) would represent additional revenues of approximately $92,662 in the General Fund and $158,000 in the Enterprise Funds. As the City moves toward recovery, growth in charges for services revenues is anticipated in FY 2022-23.
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Licenses and permits include fees for reviewing building plans, building inspections, construction, tenant improvements, and commercial/residential installations for compliance with state and municipal building codes.
The Apple Park project and large residential projects (Rosebowl, Biltmore expansion, Main Street) generated significant permiWing revenues in FY 2013-14. Since then, activity has slowed until FY 2018-19 when revenues came in 48.8% higher. Although this revenue source is relatively consistent from year to year, fluctuations may occur depending on the timing of projects being completed. The $33.5 million estimated amount in FY 2021-22 is due to Vallco Town Center (renamed The Rise) and its scheduled commencement in FY 2022-23. Vallco's commencement was originally scheduled in FY 2020-21 and FY 2021-22 but was postponed due to soil contamination. These revenues will be carried forward and recognized as the project progresses to completion.
This revenue source is expected to reach $3.5 million in FY 2022-23.
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The use of money and property category is comprised of General Fund interest earnings as well as facility and concession rental income of City-owned property. The City's portfolio is approximately $171.2 million.
Fluctuations in this revenue category are a result of investment earnings, as rental income is fairly steady.
Investment earnings were higher in FY 2019-20 and FY 2020-21 due to investment gains in the City’s Section 115 Pension Trust.
Investment earnings are a function of the amount of cash available for investment, current interest rates, and composition of investments. The City's investment objectives, in order of priority, are:
Safety to ensure the preservation of capital
Sufficient liquidity for cash needs
A market rate of return consistent with the investment program Geopolitical conflict has fueled volatility in financial markets. The conflict has exacerbated inflationary pressures, particularly in energy and commodities, and has caused tightening conditions in financial markets.
While consumer spending and economic growth remain strong, an extended conflict along with elevated energy prices increases the risk of an economic fslowdown later this year. While the Federal Reserve is expected to tighten monetary policy, the Federal Open Market CommiWee (FOMC) has very liWle margin for error as it aWempts to combat inflation without pushing the economy into a recession. Over the near-term, the City's investment manager, Chandler Asset Management, expects financial market volatility to remain elevated and conditions to remain tighter with heightened geopolitical risk, supply chain boWlenecks and persistent inflation, and the Federal Reserve's pivot to less accommodative monetary policy.
The FOMC raised the federal funds rate by 0.25% at their March 16th meeting to a target range of 0.25% to
0.50%. The Federal Reserve also ended their bond-buying program as expected in March, which included the purchase of treasury and agency mortgage-backed securities. Federal Reserve Chair Powell suggested that balance sheet runoff could begin as early as their next meeting in May, sooner than previously anticipated, and that the pace of the unwind will likely be faster than in the previous quantitative tightening cycle. The dot plot favors six additional rate hikes in 2022, which implies a 25 basis point rate hike at each remaining meeting this year, but the Federal Reserve hasn't ruled out incorporating one or more 50 basis point hikes to address inflation.
City staff will continue to monitor interest rates as well as economic factors in both the local as well as the national economy.
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Fines and forfeitures account for revenues generated from vehicle, parking, and miscellaneous code violations issued by the County Sheriff and the City's Code Enforcement officers. In FY 2021-22, the revenues for City Fines were inadvertently excluded, reflecting a projected estimate of only $225,000. However, aNer adding an estimated $102,000 in revenues for City Fines, this revenue source is expected to reach $327,000 in FY 2021-22.
Additionally, FY 2022-23 revenues are expected to increase to $427,000 due to an increase in fines as society rebounds from the pandemic.
Intergovernmental revenues are made up of federal, State, and regional grants, including miscellaneous intergovernmental revenue. FY 2021-22 actuals are estimated to come in significantly higher than budgeted levels due to the receipt of COVID-19 relief dollars as part of the American Rescue Plan Act of 2021. The City received $4,852,301 in FY 2020-21 and is expecting to receive $4,852,301 in FY 2021-22.
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Miscellaneous revenues account for unanticipated revenues such as donations and administrative fees. FY 2022-23 miscellaneous revenue remains relatively consistent with FY 2021-22 Adopted Budget. FY 2021-22 miscellaneous revenue is estimated to come in higher than budgeted due to a $500,000 increase in administrative fees for Community Development Department projects. These revenues will be carried forward and recognized as the project progresses to completion. The majority of the General Fund's miscellaneous revenues are due to Apple's annual donation for additional sheriff services at Apple Park.
Other Financing Sources generally account for refundable deposit revenues within the Community Development Department. With significant fluctuations year-over-year, staff conservatively estimate these revenues. In FY 2021-22, revenues are projected to be higher due to the carryover of refundable deposit revenues for development projects. This revenue source is expected to remain at $275,000 in FY 2022-23.
Transfers In represent the movement of funds from one City fund to another, the General Fund in this case. In the FY 2021-22, actual transfers were higher due to $4.8 million in transfers related to the American Rescue Plan Act. In FY 2022-23, the City plans to transfer $15,000 from the City's Tree Fund to the General Fund to support ongoing tree maintenance operations.
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General Fund Expenditures
Estimates for the FY 2022-23 General Fund expenditures are based upon anticipated personnel and nonpersonnel cost increases. This year, department budgets reflect a base budget with justified ongoing expenses, accounting for changes in personnel costs and any other anticipated/known increased costs in FY 2022-23. In addition, most budgets were given additional funds for any unexpected expenditures that are accounted for in the contingency account, which remained at 2.5% of base materials and contract services. Lastly, per the City’s Reserve policy, an unassigned General Fund balance above the $500,000 maximum balance will be recommended for transfer to the Capital Reserve Fund for future capital and infrastructure projects, aNer yearend close and as part of the mid-year financial report.
With a projected increase in unassigned fund balance for FY 2022-23 and an unexpected increase in revenues during FY 2020-21 and FY 2021-22, the City is recommending adding back a number of prior year materials and contract services requests that were deferred to mitigate the impacts of COVID-19. Additionally, financial updates will be provided on a quarterly basis to effectively communicate the City's progress toward a financial recovery from COVID-19.
As shown in the chart on the next page, FY 2022-23 expenditures are estimated at $93.0 million, which represents a 4% increase compared to the adopted budget from the prior year. This budget reflects an increase in Employee Compensation and Benefits due to negotiated salary and benefit changes as well as increased retirement costs. There is also an increase in Materials primarily aWributed to an increase in soNware expenses, electrical, and water service charges in FY 2022-23. Additionally, there is an increase in Contract Services primarily aWributed to the annual increase in the City’s Law Enforcement contract with Santa Clara County Sheriff.
The largest General Fund operating expenditure categories include Employee Compensation and Benefits (38%), Contract Services (27%), Transfers Out (13%), and Cost Allocation (11%) as illustrated in the FY 2022-23 General Fund Expenditures by Category chart.
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Personnel Costs
Personnel costs total $35.2 million in FY 2022-23, comprising 38% of General Fund expenditures. These costs are made up of salaries and compensation for benefiWed and part-time staff (68%), retirement benefits (20%), and other fringe benefits (11%), including health coverage.
Costs were calculated by taking an extract of payroll system information. This individual position-level information was then reviewed, corrected, and updated by each department to include current vacancies and filled positions, accurate salary step status, as well as any position reallocations. Also, all categories of benefit costs in the coming year were projected. The most recent retirement plan and health plan information for each position was also updated from the payroll system. Not included in personnel costs is the ongoing contribution for retiree healthcare which is included in the transfers category.
CalPERS retirement rates are projected to increase to $6.9 million, an increase of $0.7 million, or 11.5%, per the most recent actuarial valuation report from CalPERS. Under the Funding Risk Mitigation Policy, the 21.3% return in FY 2020-21 triggered a reduction in the discount rate from 7% to 6.8%. Pension contribution projections are reflected in the General Fund forecast section of the budget.
A total of 223 FTEs are proposed in FY 2022-23, an increase of 12 FTEs, or 5.7%, from the FY 2021-22 Amended Budget. The positions are summarized below:
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Non-Personnel
Non-personnel costs total $45.9 million in FY 2022-23, comprising 49% of General Fund budgeted appropriations. These costs are primarily made up of Contract Services (27%), Cost Allocation charges (11%), Materials (8%), and Capital Outlays and Special Projects (2%). Costs were developed from the base budget created in FY 2021-22 with justified ongoing expenses and adjustments for any other anticipated/known increased costs in FY 2022-23. One-time projects were moved to a separate category in FY 2013-14 to ensure that expenditure trends reflect ongoing expenditure needs. In FY 2017-18, a concerted effort was made to differentiate costs related to special projects and capital outlays that are required to be depreciated. A special projects series was created in the contracts section of accounts for any new special projects going forward.
With a projected increase in total unassigned fund balance for FY 2022-23, the City is able to add back a number of FY 2021-22 materials and contract services that were cut due to COVID-19 which is reflected in the 9% increase in materials and 5% increase in contract services compared to the prior year. Although program contingencies will remain reduced from 5% of budgeted General Fund materials and contract services to 2.5%.
Program contingencies have been allocated proportionately among operating programs based on each program’s share of General Fund budget for materials and contract services. The City Manager Contingency is the second level of contingency established for unexpected expenditures that may occur over the program contingency. In FY 2020-21, the City Manager Contingency was reduced from 2.5% of budgeted General Fund materials and contract services to $75,000. This brings total contingencies for the General Fund to approximately 2.5% of budgeted materials and contract services. This percentage is lower than the best practices adopted by the Governmental Accounting Standards Board (GASB) which recommended 5-15% contingency. Program contingency budgets may be used to cover unanticipated program expenses at the department’s discretion, while the use of the City Manager Contingency will require City Manager approval.
The Sheriff’s contract is excluded from the contingency calculation.
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General Fund Transfers
Transfers out represent transfers of monies out of the General Fund to various other funds. These transfers provide resources to the receiving fund to support operating and capital expenditures. For FY 2022-23, the following transfers are proposed.
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General Fund Fund Balance
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds are made up of the following:
Nonspendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, prepaid items, property held for resale, and long-term notes receivable.
Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.
CommiHed Fund Balance – includes amounts that can only be used for the specific purposes determined by formal action of the City’s highest level of decision-making authority, the City Council. Commitments may be changed or liNed only by the City taking the same formal action (resolution) that imposed the constraint originally.
Assigned Fund Balance – comprises amounts intended to be used by the City for specific purposes that are neither restricted nor commiWed. The intent is expressed by the City Council or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. Through the adopted budget, the City Council establishes assigned fund balance policy levels and also sets the means and priority for the City Manager to fund these levels.
Unassigned Fund Balance – is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose.
In circumstances when an expenditure may be made for which amounts are available in multiple fund balance classifications, the fund balance in General Fund will generally be used in the order of restricted, unassigned, and then assigned reserves. In other governmental funds, the order will generally be restricted and then assigned.
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General Fund Classification of Fund Balance
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All Funds Summary
This section provides information on the FY 2022-23 Special Revenue, Debt Service, Capital Project, Enterprise, and Internal Service Funds budgets including, expenditure and revenue highlights, transfers to other funds, reserve funds, and the financial forecast.
Revenue Estimates
Estimates for FY 2022-23 fund balance and individual revenue accounts are based upon a careful examination of the collection history and paWerns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. Each source of revenue can be influenced by external (outside of the City’s control) and/or internal factors. The FY 2022-23 revenue estimates are built on the assumption that the economy will experience conservative growth as society recovers from the pandemic.
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Special Revenue Funds
Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds include the Park Dedication, Transportation, Storm Drain, and Environmental Management/Clean Creeks funds.
Revenue
Revenue sources are projected to increase by $3.5 million. Increases in taxes are offset by decreases in transfers from the General Fund. Other Taxes is increasing due to housing mitigation revenue from the office project at 19191 Vallco Parkway. Transfers are decreasing because the Capital Improvement Program is not included in the Proposed Budget. The Capital Improvement Program will be considered in a separate study session and included in the Adopted Budget.
Expenditures
Expenditure uses are projected to decrease by $13.3 million primarily due to a decrease in Capital Outlays because the Capital Improvement Program is not included in the Proposed Budget.
Fund Balance
Fund balance represents fund savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance. It is projected to increase by $4.7 million due to an increase in housing mitigation revenue from the office project at 19191 Vallco Parkway.
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Debt Service Fund
The Debt Service Fund provides for the payment of principal, interest, and associated administrative costs incurred with the issuance of debt instruments for the City’s Public Facilities Corporation. The budget funds the Corporation’s annual payment of principal and interest on the City Hall/Community Hall/Library Certificates of Participation (COP) that will be paid off by July 1, 2030.
On September 29, 2020, the City’s 2020A Certificates of Participation (2020 COPs) were successfully sold in order to refund the City’s 2012 Certificates of Participation for debt service savings. The refunding generated net present value savings of approximately $3.14 million, 11.61% of refunded par, and a True Interest Cost of
0.72%. Savings to the City’s General Fund amounts to approximately $494,000 per year for the next 10 years or almost $5 million in total savings.
Revenue
Revenue sources are relatively unchanged from the last fiscal year. The $2.7 million transfer from the General Fund funds the annual payment of principal and interest for the City’s debt. Increased activity in FY 2020-21 is due to the refinancing.
Expenditures
Expenditure uses are relatively unchanged from last fiscal year. The $2.7 million in expenditures represents the annual payment of principal and interest for the City’s debt. Increased activity in FY 2020-21 is due to the refinancing.
Fund Balance
Fund balance represents fund savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance. Fund balance is relatively unchanged from last fiscal year.
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Capital Project Funds
This fund pays for the acquisition of major capital facilities and/or construction of major capital projects.
Revenue
Revenue sources are projected to decrease by $21.5 million because the Capital Improvement Program is not incorporated into the Proposed Budget. The Capital Improvement Program will be presented to City Council in a separate study session and included in the Adopted Budget. Transfers from the General Fund to the Capital Reserve are budgeted for this year. In the past, transfers to the Capital Reserve were not budgeted and instead adjusted at mid-year. Given the City's aging infrastructure and capital projects needs, the City is allocating $2.5 million in transfers annually to the Capital Reserve throughout the forecast to facilitate Capital Improvement Program budget forecasting.
Expenditures
Expenditure uses are projected to decrease by $20.3 million because the Capital Improvement Program is not incorporated into the Proposed Budget. The $175,000 is budgeted for annual capital project planning and support.
Fund Balance
Fund balance represents fund savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance. It is projected to decrease by $2.3 million because the Capital Improvement Program is not incorporated into the Proposed Budget.
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Enterprise Funds
Enterprise Funds are set up for the provision of specific services that are funded directly by fees charged for those goods or services. Enterprise Funds include the Resource Recovery, Sports Center, Blackberry Farm Golf Course, and Recreation funds.
Revenue
Revenue sources are projected to decrease by $0.9 million due to a decrease in fees and a decrease in transfers from the General Fund. Fee revenue estimates are conservative as the timing and extent of recovery to preCOVID level activity are difficult to measure.
Expenditures
Expenditure uses are projected to decrease by $2.0 million due to a decrease in cost allocation charges and a decrease in special projects.
Net Position
Enterprise funds carry net position instead of fund balance. Net position is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending net position.
However, some of these resources are not liquid and represent capital assets. These monies are generally accumulated to support capital replacement and/or expansion needs. It is projected to decrease by $2.8 million due to decreased revenues and transfers.
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Internal Service Funds
Internal Service Funds are used for areas where goods or services are provided to other departments or governments on a cost-reimbursement basis. Internal Service Funds include the Information & Technology, Vehicle & Equipment Replacement, Workers' Compensation, Compensated Absences & Long-Term Disability, and Retiree Medical funds.
Revenue
Revenue sources are projected to increase by $1.1 million due to increased transfers from the General Fund for IT costs.
Expenditures
Expenditure uses are projected to increase by $0.1 million.
Net Position
Internal Service Funds carry net position instead of fund balance. Net position is calculated in the same manner as fund balance, taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending net position. However, some of the resources are not liquid and represent capital assets. These monies are generally accumulated to support capital replacement and/or expansion needs.
It is projected to decrease by $1.6 million due to revenues being higher than expenditures. Expenditures are increasing due to a technology refresh.
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General Fund Forecast
Overview
City staff develops medium-term (5-year) and long-term (20-year) forecasts as part of the budget process. While long-term projections are inherently less reliable than short-term projections, they can help detect structural budget issues early. As shown in the following chart, revenues will start to fall short of expenditures in FY 2040-41 because revenues are growing slower than expenditures.
Revenue growth is primarily driven by sales, property, and transient occupancy taxes.
Sales tax revenues experienced tremendous growth in FY 2019-20 and FY 2020-21 as the pandemic lead to increases in business-to-business and online sales. Sales tax is expected to be lower in FY 2022-23 compared to FY 2020-21 as the State emerges from the pandemic. In addition, the California Department of Tax and Fee Administration (CDTFA) is currently auditing the City's sales tax revenues. The impact of this audit is unknown but has the potential to have a significant impact on the City’s sales tax revenues. Once more information is known, staff will bring updates to Council.
Property tax—while currently strong—may be affected if telecommuting impacts property values in the Bay Area.
Transient occupancy tax revenues have been slow to recover and are expected to gradually recover to 75% of pre-pandemic levels. Telecommuting may reduce business travel, reducing the demand for City hotels.
Expenditure growth is primarily driven by:
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Requests for additional staffing to meet the demand for City services.
Increases in the City’s Law Enforcement contract with the Santa Clara County Sheriff’s Office.
Revenues continue to grow at a slower pace than expenditures, with annual operating surpluses projecting to decrease, as shown below.
Although it is difficult to estimate the full impacts of COVID-19 long-term, the City’s fiscal foundation remains strong. With the General Fund’s Economic Uncertainty Reserve intact and a healthy unassigned fund balance, the City is poised to withstand the impacts of revenue volatility. As the City emerges from the pandemic, staff will continue to closely monitor the situation and adjust when necessary. Staff intends on keeping the City Council and community informed with regular updates. Having the latest information and up-to-date data will allow for informed decision-making.
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Forecast Methodology
A financial forecast is a planning tool that helps staff identify trends and anticipate the long-term consequences of budget decisions. The forecast is instrumental in modeling the effects of retirement costs, employee compensation, and revenues on the City’s budget.
The forecast is not a plan but a model based on cost and revenue assumptions updated regularly as new information becomes available. Of these components, cost projections, which are based on known costs, are relatively reliable. On the other hand, revenue forecasts are based on assumptions related to future economic conditions, which are fraught with uncertainty. Economic forecasts change frequently and demonstrate the difficulties of commiWing to a particular prediction of the future. For this reason, staff updates the forecast regularly.
While economic conditions are the primary drivers for economically sensitive revenues such as sales tax and property tax, other factors drive non-economically sensitive categories such as utility user taxes and franchise fees. These revenue categories are more heavily impacted by utility rate changes, energy prices, and consumption levels. Collections from local, state, and federal agencies are primarily driven by grant and reimbursement funding available from these agencies. As a result, these revenues experience no significant net gain or loss during economic expansions or slowdowns. All revenue projections are based upon a careful examination of the collection history and patterns related to seasonality and the economic environment the City is most likely to encounter in the future. Staff also considered potential COVID-19 impacts in determining the most reasonable estimated figures.
A discussion of both the national and local economic outlooks used to develop the revenue estimates for the FY 2022-23 forecast is included below. To create the revenue forecasts, the City reviewed national, state, and regional economic forecasts from multiple sources, including the Congressional Budget Office, California’s Legislative Analyst’s Office (LAO), and the Center for Continuing Study of the California Economy (CCSCE).
To develop the sales tax, property tax, and transient occupancy tax (TOT) revenue projections, the City worked with HdL Companies, a tax consultant.
The City's Consumer Price Index (CPI) forecasts are an average of State and County CPI from:
UCLA Anderson Forecast for the Nation and California
California Department of Transportation’s California County-Level Economic Forecast In 2019, the City worked with UFI (Urban Futures, Inc.), a financial advisory and consulting firm, to:
Review, update, and enhance the City’s baseline financial forecast.
Evaluate fiscal strategies including potential local revenue measures.
Develop capital financing options, structures, and estimates for identified projects.
Prepare an analysis of city charter costs/benefits related to fiscal activities.
This forecast includes the updates and enhancements that UFI has made to the City’s baseline financial forecast.
National Economic Outlook
Real gross domestic product (GDP) increased at an annual rate of 6.9 percent in the fourth quarter of 2021, following an increase of 2.3 percent in the third quarter. The increase was revised down 0.1 percentage points from the "second" estimate released in February. The acceleration in the fourth quarter was led by an acceleration in inventory investment, upturns in exports and residential fixed investment, and an acceleration in consumer spending. In the fourth quarter, COVID-19 cases resulted in continued restrictions and disruptions in the operations of establishments in some parts of the country. Government assistance payments in the form FY 2022-23 Proposed Budget Financial Schedules 139
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of forgivable loans to businesses, grants to state and local governments, and social benefits to households all decreased as provisions of several federal programs expired or tapered off.
Geopolitical conflict has fueled volatility in financial markets. The conflict has exacerbated inflationary pressures, particularly in energy and commodities, and has caused tightening conditions in financial markets.
While consumer spending and economic growth remain strong, an extended conflict along with elevated energy prices increases the risk of an economic slowdown later this year. While the Federal Reserve is expected to tighten monetary policy, the Federal Open Market CommiWee (FOMC) has very liWle margin for error as it aWempts to combat inflation without pushing the economy into a recession. Over the near term, the City’s investment manager, Chandler Asset Management, expects financial market volatility to remain elevated and conditions to remain tighter with heightened geopolitical risk, supply chain bottlenecks and persistent inflation, and the Federal Reserve’s pivot to a less accommodative monetary policy.
As the City moves forward through the pandemic and more information becomes available, staff will bring forward updates and adjustments to City Council regularly as necessary.
Cupertino Economic Outlook
Despite strong economic performance continuing in Silicon Valley and Cupertino pre-COVID, data from the State of California Employment Development Department indicates significant impacts resulting from the virus.
Due to the timing of property appraisals entering the assessor’s role, the City does not anticipate significant impacts to property tax revenues in FY 2022-23. Property tax, while stable currently, could be affected if remote work impacts property values in the Bay Area. Although strong in previous years, construction activity will continue to flaWen out as recent large development projects, notably Apple Park, are now complete. Given the level of volatility surrounding the pandemic, it is difficult to estimate the timing of significant projects that could positively impact the City’s revenues.
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Revenues
The City’s top three revenue sources continue to be property tax, sales tax, and transient occupancy tax (TOT).
While this will continue to be true, the City expects revenues to be below the highs in FY 2020-21.
As shown in the chart below, General Fund revenues are expected to be $93.7 million in FY 2022-23 and increase through the forecast. Sales tax is projected to decrease from the record highs of FY 2020-21. Transient occupancy tax is projected to recover to a new normal gradually. Property tax is anticipated to increase in FY 2022-23. Other revenue sources consider assumptions ranging from no growth to conservative growth.
The National Bureau of Economic Research (NBER), an American private nonprofit research organization, defines the beginning and ending dates of recessions. The NBER defines a recession as "a significant decline in economic activity spread across the economy, lasting more than two quarters which is 6 months, normally visible in real gross domestic product (GDP), real income, employment, industrial production, and wholesaleretail sales. Since World War II, recessions have lasted an average of 11.1 months and have occurred, on average, about every 58.4 months (4.8 years). As a result, the forecast assumes a recession every 4 years where revenues remain flat while expenditures continue to increase.
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Sales Tax
Sales tax is the City’s largest revenue source. Sales taxes are collected at the point of sale and remiWed to the California Department of Tax and Fee Administration (CDTFA), formerly the Board of Equalization. The CDTFA allocates tax revenue owed to the City in monthly payments.
Sales tax revenues increased significantly in FY 2020-21 due to increases in the City’s business-to-business industry and online sales. Business-to-business revenues reached record highs as businesses transitioned to remote work as a result of the pandemic. Additionally, due to Shelter-in-Place orders, brick and mortar retail sales decreased while online sales increased. However, the City believes this increase is one-time in nature due to the pandemic.
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As the economy recovered from the depths of the pandemic, sales tax revenues from the general consumer goods, restaurants and hotels, and fuel and service stations industries rose in FY 2021-22. However, the future growth rate for sales tax revenue is expected to slow markedly. Surging inflation, a dramatic jump in the global price of crude oil due to geopolitical conflict, and the Federal Reserve’s tightening monetary policy will be headwinds in 2022. This is expected to result in weakening consumer sentiment and continued, but decelerating, sales tax growth into 2023.
In FY 2022-23, sales tax revenues are projected to be $31.9 million, a decrease from the highs in FY 2020-21.
Sales tax revenues are projected to increase by an average annual growth rate of 1.9% in the forecast. Staff used conservative estimates for business and industry, general consumer goods, restaurants and hotels, and state and county pools.
The City’s sales tax revenues face concentration risk due to the dependence on a single industry. The largest industry group, business-to-business (B2B), is sensitive to economic forces. In particular, the City’s two largest sales tax sources—both technology companies—account for a large portion of the City’s total sales tax revenues. Sales tax revenue is reported two quarters in arrears, providing the City with about six months to react if this revenue starts to decline.
Another risk is the California Department of Tax and Fee Administration (CDTFA) sales tax audit. The CDTFA is currently auditing the City's sales tax revenues. The impact of this audit is unknown but has the potential to have a significant impact on the City’s sales tax revenues. Once more information is known, staff will bring updates to Council.
Given the volatility of B2B revenue, which accounts for the majority of the City’s sales tax revenue, a key goal of the City’s long-term fiscal strategic plan is to diversify its sales tax sources. Recently completed development projects such as Nineteen800 and Main Street have boosted retail sales and can help reduce the City’s reliance on B2B revenue.
Property Tax
Property taxes are anticipated to remain stable in the near term, but it is unknown how potential remote work might impact property taxes in the long term. With remote work, people are rethinking where they choose to live. As people no longer need to live close to the office, demand for residential real estate in urban areas may decrease. Companies can reduce office space if fewer employees are working at the office, decreasing demand for commercial office space.
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Property tax revenues are projected to be $30.0 million in FY 2022-23 and increase by an average annual growth rate of 2.5% in the forecast. This moderate forecast is based on various factors, including historical trends for the City and projections for the region. Historically, property tax has increased at an average annual growth rate of 11%. However, this moderate forecast projects a much lower growth rate because no major development projects are assumed. Major development projects, such as Main Street and Apple Park, were significant contributors to the historical growth in property tax revenues.
Transient Occupancy Tax
Transient occupancy tax (TOT) revenues fell dramatically as the pandemic reduced travel. TOT revenues were $8.9 million in FY 2018-19 and $7.3 million in FY 2019-20, falling to $2.1 million in FY 2020-21. Transient occupancy taxes rely heavily on business travel. As businesses become accustomed to remote work, business travel may be permanently affected. If business travel fails to rebound, TOT revenues will be significantly affected.
While leisure travel has recovered much sooner than expected, business travel has not recovered as quickly.
Staff is cautiously optimistic business travel will increase gradually over the next few years.
The City anticipates a recovery of TOT revenues by FY 2023-24; however, it is unknown whether business travel will return to pre-COVID levels. This forecast assumes that TOT revenues will recover to 75% of preCOVID levels, or $7.5 million, in FY 2023-24 and gradually increase from the new normal.
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TOT revenues are projected to be $5.0 million in FY 2022-23. In the forecast, TOT is projected to increase at an average annual growth rate of 2.6%. Beginning in FY 2023-24, the City used a moderate forecast based on historical tax collections. This moderate forecast assumes slower growth than historical trends, given that no additional hotels are expected to open. De Anza Hotel and Cupertino Village Hotel are not included in the forecast as they have not been permitted yet.
TOT revenues are impacted by the tax rate charged on hotels in the City, the occupancy rate of the hotels, and the average daily room rates (ADR) of the hotels. TOT revenues are highly correlated with B2B revenue, as TOT revenues in Cupertino are primarily driven by business travel. Before the pandemic, occupancy rates were currently at record levels given the City's strong local economy. However, given the dependence on business travel, shifts in travel habits or economic conditions could significantly impact this revenue source.
Licenses and Permits
Licenses and permits are forecasted to decrease in FY 2022-23 due to reduced development activity but increase slightly in the out-years. Licenses and permits revenue is projected to grow at a rate of 0.3% each year.
Revenues are based on forecasts of California residential building permits, non-residential building permits, and construction payrolls from the UCLA Anderson Forecasts for the Nation and California. Out of prudence, this forecast does not reflect any major development projects that are awaiting approval. If new development projects are approved, staff will update this forecast accordingly.
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Charges for Services
Revenues from charges for services have decreased from their FY 2016-17 levels, primarily due to a decrease in development activity.
In FY 2020-21, revenues from charges for services decreased due to Parks & Recreation Department’s programs being affected by the COVID-19 pandemic. During the COVID-19 pandemic, the City’s recreation facilities were shut down due to the Stay-at-Home order issued by the Santa Clara County Public Health Department in mid-March 2020. As COVID-19 restrictions have lifted, programs and events have resumed.
Charges for Services revenues are projected to increase at an average annual growth rate of 2.0%. Other Service Fees, Cost Allocation Plan Charges for Services, and General Service Fees are projected to increase by 2.8% based on full-time salary growth. Planning Fees and Engineering Fees are based on construction and development factors, including California residential building permits, non-residential building permits, and construction payrolls from the UCLA Anderson Forecasts for the Nation and California. This forecast does not FY 2022-23 Proposed Budget Financial Schedules 146
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assume any major development projects that are awaiting approval.
Other Revenue
Utility taxes are forecasted to increase by an annual average growth rate of 0.4% based on historical trends. In recent years, increases in rates have been offset by decreases in consumption.
Franchise fees are projected to increase by an average annual growth rate of 1.7% based on a trend of historical data.
Other taxes are made up of construction, property transfer, and business license tax revenue. Revenue is projected to increase by an average of State and County CPI.
Use of money and property is expected to grow at a rate of 0.5% each year based on the City’s current conservative investment strategy and low-interest rates. The Section 115 Pension Trust is expected to grow at the discount rate of 6.3%.
Intergovernmental revenues are projected to grow at a rate of 0.5% each year.
Fines and Forfeitures are forecasted to remain constant in the forecast.
Miscellaneous revenues are forecasted to increase by CPI each year.
Non-operational revenues (Transfers and Other Financing Sources) are not assumed in the forecast.
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Expenditures
In FY 2019-20, the City developed a zero-based budget. Staff analyzed every function of the City for its needs and costs. Staff built the budget starting from a zero base and justified all costs. This best practice resulted in base budget savings.
For FY 2022-23, the City updated the prior year's base budget. Materials were increased by CPI and contracts were updated based on contractual obligations. Ongoing costs that were approved during the prior fiscal year were also added to the base budget.
The forecast was developed based on actual expenditures in prior years and FY 2022-23 projections. The forecast also included the following factors: CPI, construction and development activity, and CalPERS Normal Cost and Unfunded Liability projections. The forecast is adjusted to account for one-time changes and budget adjustments throughout the year.
To manage expenditure growth, the City is considering budget-balancing strategies such as the use of the City’s Section 115 Trusts to fund pension and OPEB costs.
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As displayed in the chart above, General Fund expenditures are projected to be $93.0 million in FY 2022-23 and increase throughout the forecast. The main drivers of expenditure growth are employee compensation and contract services due to additional staffing, retirement rates, and increasing Law Enforcement costs. The following discussion focuses on the assumptions used for estimating each of the expenditure categories in the General Fund Forecast.
Personnel Expenditures
Salaries
The City is currently negotiating with its bargaining groups because labor agreements expire on June 30, 2022.
Due to the uncertainty, the forecast only accounts for step increases and changes in CalPERS retirement rates.
The forecast does not include any cost-of-living adjustments (COLA) or equity adjustments.
Employees who have yet to reach the top step in their classification’s salary range are eligible to receive a step increase on their anniversary date. Typically, classifications have five steps, with each increase equivalent to a 5% increase in salary. Currently, approximately 41% of employees are below Step 5.
Full-time salaries are projected to grow at a rate of 2.8% per year, based on the presumed rate of growth by CalPERS. Part-time salaries are forecasted to grow at a rate of 1.5% as they generally grow slower than full-time salaries.
Health Benefits
In FY 2022-23, health benefits account for about 7% of all personnel costs in the General Fund, primarily due to health insurance costs. The City pays employees a fixed amount for health and dental insurance costs instead of covering a percentage of premiums. In October 2016, City Council approved labor contracts that significantly increased the City’s health insurance contributions to align the City with the median offerings of our comparator cities. For the duration of the contract, cost increases in health and dental premiums above the negotiated amounts were fully absorbed by employees. The City is in negotiations with its bargaining groups, CEA and OE3.
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Retirement Benefits
Rising retirement costs are driving the increase in employee benefits. Cupertino provides retirement benefits for its employees through the California Public Employee’s Retirement System (CalPERS). Poor investment returns during the Great Recession significantly decreased the plan’s assets. In addition, enhanced benefits and actuarial assumption changes due to increased life expectancies increased the plan's liabilities. As a result, the City's pension costs have increased significantly and are one of the City's largest financial obligations.
The City’s CalPERS costs are projected to increase over the next few years, as shown in the table below.
In December 2016, the CalPERS Board of Administration lowered the discount rate from 7.5% to 7.0% with a three-year phase-in beginning in FY 2018-19 to improve the financial stability of the pension system. This resulted in significant increases in retirement costs. In FY 2021-22, the CalPERS Board lowered the discount rate from 7.0% to 6.8% because the FY 2020-21 investment gain of 21.3% triggered the Funding Risk Mitigation Policy.
The City’s retirement rates are based on a blend of all three tiers (2.7% @ 55, 2% @ 60, and 2% @ 62). Although employees pay a different rate depending on their tier, the City’s costs are the same for all three tiers. The table below shows the current breakdown of City employees amongst the three retirement tiers. The majority of employees in the City are currently covered under Tier 3. Savings from the lower-cost Tier 2 and Tier 3 plans are not expected to be substantial for several years.
A retiree's highest monthly pension benefits are calculated by multiplying:
Service credit: the number of years of CalPERS service.
Benefit Factor: percentage of pay based on age.
Compensation Basis: the highest monthly average salary for a defined period.
Other Benefits
The forecast assumes health insurance, dental insurance, and vision insurance increase by CPI. No increases were forecasted for the following benefits: internet allowance, standby pay, Employee Assistance Program, and Deferred Compensation. Rec Bucks are assumed to increase at a 0.5% growth rate.
Vacancy Savings
The forecast assumes vacancy savings of 5 FTE annually, based on historical vacancy rates due to attrition.
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Non-Personnel Expenditures
Non-Personnel budgets were developed based on actual expenditures in prior years and then adjusted for FY 2022-23 funding needs. In addition, one-time projects have been excluded to ensure that expenditure trends reflect ongoing expenditure needs.
For the out-years of the forecast, expenditures are projected to increase by CPI.
Materials costs are forecasted to increase by CPI.
Contract Services costs are projected to grow by CPI except for the Law Enforcement contract with the Santa Clara County Sheriff’s Office. Law Enforcement costs are projected to grow by CPI plus 2%. Per the terms of the contract, the annual increase is limited to the lesser of:
percentage increase in total compensation and annual CalPERS cost increase or annual CPI plus 2% and annual CalPERS cost increase.
Increases in the City’s Law Enforcement costs are a primary driver of the City’s expenditure growth.
Cost Allocation is projected to grow by 2.8%.
Capital Outlays and Special Projects are projected to increase by CPI. In the last five years, the City has spent about $2 million per year in capital outlay and special project costs, excluding development projects that include pass-through revenue.
Contingencies are projected to increase by CPI. Contingencies remain reduced in FY 2022-23. Program contingencies were cut in half to 2.5% in FY 2020-21 and the City Manager’s Contingency Fund was reduced to $75,000 in FY 2021-22. In prior years, program contingencies were 5% of Materials and Contract Services and the City Manager’s Contingency was 5% of General Fund Materials and Contract Services, excluding the law enforcement contract. The City has historically underspent in this category, and use of these funds would require pre-approval by the City Manager or his/her designee.
Transfers represent the General Fund’s contributions to other City funds to support debt payments, pay retiree health costs, finance capital projects, replenish capital project reserves, acquire new equipment, and subsidize enterprises and operations. With the implementation of the full cost allocation plan in FY 2015-16, General Fund expenses have been shiNed to other City funds, causing some of those funds’ revenues to fall short of expenses and necessitating the use of fund balances to cover expenses. The General Fund benefits in the near term from the cost shiN; however, aNer fund balances in those other funds are drawn down to minimum levels and absent aggressive revenue or cost actions in those other funds, General Fund subsidies are necessary to maintain those fund balance minimums.
Projected General Fund subsidies to each fund are based on the following assumptions:
Special Revenue Funds: $3 million annually.
Debt Service Funds: $2.7 million based on 2012 COPS debt service schedule.
Capital Reserve: $2.5 million annually.
Retiree Medical Fund: $0 million.
Compensated Absences Fund: $0.8 million and increases at a rate of 2.8% per year.
Innovation and Technology Fund: $2 million and increases at CPI per year.
Enterprise Funds: $1 million and increases at CPI per year.
In FY 2029-30, the City will finish paying off its debt for city facilities. Until FY 2029-30, the City is scheduled to pay approximately $2.7 million per year in principal and interest on the City Hall, Community Hall, and Library Certificates of Participation. The funds are transferred from the City’s General Fund to the City’s Debt FY 2022-23 Proposed Budget Financial Schedules 151
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Service Funds.
Historically, the City has transferred funds from the General Fund to the Capital Reserve at mid-year. While mid-year fund transfers are typically significant, $10 million annually on average, there has been a high degree of variability. To facilitate forecasting Capital Improvement Program funding, the forecast allocates $2.5 million annually for transfers to the Capital Reserve.
Starting in FY 2022-23, the City plans to fund Other Post-Employment Benefits (OPEB) costs with the City’s Section 115 OPEB Trust because the City’s OPEB plan is over 100% funded. The OPEB Trust had a balance of $36.1 million as of March 31, 2022. Funding OPEB costs with the OPEB Trust will eliminate the transfers from the General Fund to the Retiree Medical Fund.
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Pension
CalPERS
The City provides a defined benefit pension to its employees through the California Public Employees' Retirement System (CalPERS). Retirement benefits are calculated using a formula based on an employee’s age, earnings, and years of service. The retirement benefits are funded by:
Investment earnings (60%)
Employer contributions (29%)
Employee contributions (11%)
Each year, CalPERS determines an employer's contributions based on actual investment returns and actuarial assumptions including:
Expected investment returns (discount rates)
Inflation rates
Salaries
Retirement ages
Life expectancies
Contributions to fund the pension plan are comprised of two components:
The normal cost (the cost of the benefits earned in a respective year).
The amortization of the unfunded accrued liability (UAL).
CalPERS Discount Rate
Defined benefit plans are highly sensitive to the discount rate assumption. The discount rate is the expected rate of return of the plan's assets over the long term. The discount rate will depend on the plan's size, asset allocation, time horizon, and other considerations.
From the City's perspective, the discount rate is important as it is used to determine the City's annual contributions to the plan, the plan's unfunded liability, and the plan's funded status. In other words, the discount rate is used to determine whether a plan has enough assets to meet its future obligations. The discount rate must be realistic to allow the City to foresee funding issues that may impact future operating budgets and future generations of retirees and plan members. If the discount rate assumption is too high and investments earn less than expected, a funding shortfall may result, requiring the City or CalPERS members to make greater contributions than expected.
CalPERS Investment Earnings
Since investment earnings fund nearly 60% of retirement benefits, the City’s pension plan is sensitive to the investment returns of CalPERS. Investment returns affect how much of the retirement benefits can be funded by investment earnings rather than contributions. If investment returns are lower than the discount rate, contributions must increase to make up the difference. As a result, pension plans need accurate return assumptions to ensure fiscal sustainability.
Currently, CalPERS assumes it will earn investment returns of 6.8% each year. As illustrated in the following chart, over the last 20 years, CalPERS has earned investment returns below the discount rate assumption approximately half of the time. Individual fiscal year investment returns have ranged between -24.0% and +21.7%. In particular, CalPERS earned negative investment returns in 2001 and 2002 due to the dot-com crash and 2008 and 2009 due to the Great Recession.
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Note: Beginning in 2002, investment returns are reported as gross of fees.
For FY 2020-21, CalPERS reported an investment return of 21.3%, 14.3 percentage points higher than the 7% discount rate. The average investment return is 10.3% for a 5-year period, 8.5% for a 10-year period, 6.9% for a 20-year period, and 8.4% for a 30-year period. As returns in a given year are volatile, it can be more instructive to look at returns over longer time horizons.
CalPERS Update
Funding Risk Mitigation Policy
Under the Funding Risk Mitigation Policy, the 21.3% return in FY 2020-21 triggered a reduction in the discount rate from 7% to 6.8%. The Funding Risk Mitigation Policy, approved by the CalPERS Board in 2005, lowers the discount rate in years of good investment returns to reduce risk in the portfolio. The Risk Mitigation Policy will affect contributions starting in FY 2023-24.
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Asset Liability Management Process
In November 2021, CalPERS completed its quadrennial Asset Liability Management (ALM) process, which reviewed investment strategies and actuarial assumptions. At the November 15-17, 2021, meetings, the CalPERS Board approved a 6.8% discount rate, selected a new asset allocation for the fund's investment portfolio, and adopted new actuarial assumptions.
During the ALM process, the board examined different potential portfolios and their impact on the CalPERS fund. Ultimately, the board selected the portfolio with an assumed investment return of 6.8%.
The new portfolio includes a 5% allocation to leverage.
CalPERS Plan Status
As of the most recent actuarial valuation on June 30, 2020, the City’s pension plan had assets of $103.8 million and liabilities of $157.6 million, resulting in an unfunded liability of $53.8 million and a funded ratio of 65.9%.
The unfunded liability is the difference between assets and liabilities, while the funded ratio is the ratio of assets to liabilities.
The City has also established a fund, a Section 115 Trust, to reduce pension rate volatility. ANer factoring in the City’s Section 115 Trust, the funded status of the City’s pension fund is 78.0%.
A defined-benefit plan is considered adequately funded if its assets equal or exceed the value of its future liabilities. When the funded ratio is lower than 100%, the plan has insufficient assets to pay all future liabilities.
Poor investment returns during the Great Recession significantly decreased the plan’s assets. In addition, enhanced benefits and actuarial assumption changes due to increased life expectancies increased the plan's liabilities. These two factors significantly decreased the funded status of the system.
Over the past few years, CalPERS has taken steps to improve the long-term financial sustainability of the system. In December 2016, the CalPERS board voted to reduce the discount rate, also known as the assumed rate of return for investments, from 7.5% to 7.0% over three years from FY 2018-19 to FY 2020-21. In February 2018, the CalPERS board also voted to decrease the amortization period for new pension liabilities from 30 years to 20 years, effective July 1, 2019. While these changes will provide long-term benefits to the pension plan, they will also increase the City’s pension contributions.
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Impact of CalPERS Investment Returns
CalPERS assumes it will earn investment returns of 7% each year. If investment returns are higher than 7%, the City's contributions decrease. On the other hand, if investment returns are lower than 7%, the City's contributions increase.
In FY 2019-20, CalPERS earned 4.7%, 2.3 percentage points below the 7% discount rate. As a result, the City’s required pension contributions will increase to make up for the difference. The FY 2019-20 investment loss will affect the City’s pension costs starting in FY 2022-23. The contribution increase will be amortized over 20 years and phased in over five years. In FY 2026-27, when the investment loss is fully phased in, the CIty's annual costs are expected to be $0.30 million higher than previously projected.
For FY 2020-21, CalPERS reported an investment return of 21.3%, 14.3 percentage points above the 7% discount rate. The investment return triggered the Funding Risk Mitigation Policy, lowering the discount rate to 6.8%.
The investment gain and discount rate reduction will impact the City's pension costs starting in FY 2023-24. The discount rate reduction partially offsets the effect of the investment gain. In FY 2027-28, when the investment gain is fully phased in, the City's annual costs are expected to be $1.3 million lower than previously projected.
The FY 2020-21 investment gain will also increase the funded status of the City's plan. As of June 30, 2021, the funded status is projected to be 76% with a 6.8% discount rate.
In 2022, financial market volatility has increased due to heightened geopolitical risk, supply chain boWlenecks and persistent inflation, and the Federal Reserve’s pivot to a less accommodative monetary policy. Any investment losses will impact the City's future pension costs.
Impact of CalPERS Discount Rate Changes
Due to lower-than-historical interest rates and economic growth, market experts project lower returns for the next several decades. The Pew Research Center forecasts a long-term investment return of 6.5% for typical pension fund portfolios.
During its Asset Management Liability Process, CalPERS considered discount rates between 6.25% and 7%.
Ultimately, CalPERS approved a discount rate of 6.8%, a decrease from the previous discount rate of 7%.
The discount rate has a significant effect on the City's CalPERS contributions. If the discount rate is less than the discount rate assumption, the City's CalPERS contributions will increase. If CalPERS lowers the discount rate by one percentage point, the City's contributions will increase by up to $2.9 million per year.
This analysis shows the potential contribution impact if CalPERS were to lower the discount rate.
Section 115 Trust
A Section 115 Trust is a tax-exempt investment tool that allows local governments to pre-fund pension and retiree health costs. Once contributions are placed into the trust, the City can only use assets from the trust for retirement plan purposes. The City may make withdrawals to either reimburse the City for retirement system contributions or to pay CalPERS directly. The benefits of a Section 115 Trust include the following:
Local control over assets: The City controls the contributions, withdrawals, investment strategy, and risk level of assets in the Trust.
Pension rate stabilization: Assets can be transferred to CalPERS at the City’s discretion to pay for Normal Cost or UAL contributions and can be used to reduce or eliminate large fluctuations in the City’s pension costs.
Potential for higher investment returns than General Fund: Investment requirements applicable to the City’s General Fund assets under Government Code 53601 do not apply to Trust assets.
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Diversification: Trust assets will be diversified from CalPERS investments.
City Strategies
Given that pension obligations are one of the City’s largest financial obligations, the City has taken proactive steps to reduce the impact of pension cost volatility. In March 2018, the City provided options to Council to address rising pension costs. In April 2018, the City presented a long-term pension funding strategy to the Fiscal Strategic Plan CommiWee. In May 2018, the City implemented a Pension Rate Stabilization Program (PRSP), also known as a Section 115 Trust, to reduce pension rate volatility on the City’s budget. The Pension Trust helps the City to:
Grow assets for future pension contributions.
Invest assets over appropriate time horizons.
Earn higher investment returns than the General Fund.
Reduce pension contribution volatility.
Diversify funds from CalPERS investments.
As a fiscal sustainability measure, the City funds the Section 115 Trust using a more conservative discount rate of 6.25%. The City's pension funding goal is to accumulate sufficient funds in the Pension Trust to fund the difference between a 6.25% and a 7% discount rate and achieve a funded ratio of 80% over 20 years. The City's projections indicated that the City would need to accumulate over $42 million in the Pension Trust within 20 years to achieve its pension funding goal.
To achieve this goal, the funding strategy proposed $8.0 million in initial funding, along with additional funding of $10.0 million over the first five years. The City contributed:
$8 million in FY 2018-19
$4 million in FY 2019-20
$2 million in FY 2020-21
$2 million in FY 2021-22
Total contributions are $16.0 million. As of March 31, 2022, the Section 115 Trust had a balance of $19.5 million and had earned an annualized investment return of 9.35% gross of fees since inception.
Given the funding currently set aside for pension funding, the City is in a solid position to withstand the effects of pension cost increases. If CalPERS earns less than the discount rate assumption, the City will be beWer prepared for future pension cost increases. If CalPERS lowers the discount rate in the future, the City will be better prepared to absorb these costs.
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Fund Balance
The foresight of the City Council and staff in previous years to focus on ensuring healthy reserves is paying off in full. Increases in sales tax revenues and budget reductions in FY 2020-21 have contributed to this planning strategy and will provide additional resources for the City in the future.
The General Fund’s Unassigned fund balance remains healthy and will be able to assist in addressing funding gaps. In addition, the General Fund's Committed and Restricted fund balance includes:
Economic Uncertainty Reserve ($25 million): may be used to mitigate potential shortfalls in future fiscal years.
Capital Projects Reserve ($10 million): may be used to fund capital projects.
Section 115 Pension Trust ($19.5 million): may be used to mitigate potential increases to CalPERS’s annual required contribution rate or further reductions in the discount rate set by CalPERS.
The General Fund’s fund balance is projected to be $97.6 million in FY 2022-23 and increase throughout the forecast. The General Fund's Unassigned fund balance is forecasted to be $35.9 million in FY 2022-23.
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It is anticipated that the City will transfer any unassigned fund balance over the $500,000 threshold to the Capital Reserve, the Capital Projects Reserve, or the Section 115 Trust as described in the City's Fund Balance and Use of One Time Funds Policy.
In FY 2018-19, the City adopted a Section 115 as part of a long-term strategy to improve the financial sustainability of the City’s pension system and reduce the effect of pension rate volatility. The City can use funds from the Section 115 Trust to offset unexpected increases in retirement contributions. Funds in the Section 115 Trust are restricted and can only be used to pay CalPERS or reimburse the City for pension contributions.
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Budget-Balancing Strategies
Historically, the City’s budget has been structurally sound, with revenues exceeding expenditures in most years. When revenues have exceeded expenditures, the City has transferred the excess fund balance to the Capital Reserve per the City’s One Time Use and Reserve Policy. The current 5-year and 20-year forecasts anticipate operating deficits near the end of the forecast, beginning in FY 2040-41. The operating deficits are projected to increase as revenues grow at a slower pace than expenditures. As a result, the following strategies may be used to assist in balancing the budget over the next 20 years.
Strategy Description Potential Impact
Expenditures
Section 115 Trust
The City established a Section 115 Trust to reduce
pension rate volatility when CalPERS investment
returns are below the discount rate or when CalPERS
changes assumptions.
The City can also use it to offset pension costs in any given year.
The fund is
currently at $19.5
million.*
Capital Projects Reserve The City has $10 million in its Capital Projects Reserve (General Fund).
The fund is
currently at $10
million.
Economic Uncertainty
Reserve
The City has $25 million in its Economic Uncertainty
Reserve (General Fund).
The fund is
currently at $25
million.
*As of March 31, 2022
Additional Potential Strategies
Although not recommended at this time, the City may consider the following potential strategies in future years if sharp declines in revenues or increases in expenditures cause large structural deficits.
Potential Strategy Description Potential Impact
Revenues
Transaction and Use Tax (1/4
cent)
Voter approval is required
Could increase sales tax from 9.125% to 9.375%
$5.2 million
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Transient Occupancy Tax
Measure
Voter approval is required
Could increase transient occupancy tax from 12% to
14%
$1.7M @ $10M base
$1.25M at $7.5M
base
$833k at $5M base
Parcel Tax Voter approval is required
$3.5M flat rate per
parcel
$3.6M variable rate
per SF
Expenditures
Salary and benefit savings
through attrition
Keep non-essential positions unfilled as they become
vacant.
Approximately
$186,000 per position
on average
Employee cost-sharing of
increases to CalPERS
Negotiate to share costs of increases to CalPERS
employer rates with employees.
$250,000
approximate based
on a 5% rate increase
No new positions Cost containment strategy $0
Furloughs
Employees would take up to 20 hours or the equivalent
of a 1% decrease in pay in exchange for 2.5 unpaid
furlough days
$295,000
approximate based
on a 1% decrease
Deferring or eliminating
negotiated increases
The City's current labor agreements expire on June 30,
2022. Deferring or eliminating negotiated increases
would require agreement from the bargaining units.
$295,000
approximate based
on a 1% decrease
Reduction in force
The City would identify what positions could be
reduced (laid off) based on provisions in the MOUs
where appropriate and service level needs in the City.
Approximately
$186,000 per position
on average
Reduction in capital outlays
and special projects Cost containment strategy Up to $4 million Reduction in contingencies Cost containment strategy Up to $400,000 FY 2022-23 Proposed Budget Financial Schedules 161
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Council and Commissions
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Department Overview
Budget Units
Budget Unit Program 2023 Proposed Budget
City Council $ 586,403
100-10-100 City Council $ 499,627
100-10-101 Community Funding $ 22,770
100-10-110 Sister Cities $ 64,006
Commissions $ 650,512
100-11-131 Technology, Information & Communications Commission $ 39,481 100-11-140 Library Commission $ 51,371
100-11-142 Fine Arts Commission $ 73,624
100-11-150 Public Safety Commission $ 45,192
100-11-155 Bicycle and Pedestrian Commission $ 62,230
100-11-160 Parks and Recreation Commission $ 53,085
100-11-165 Teen Commission $ 46,076
100-11-170 Planning Commission $ 121,496
100-11-175 Housing Commission $ 61,468
100-11-180 Sustainability Commission $ 60,983
100-11-190 Audit Committee $ 35,506
Total $ 1,236,915
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Budget at a Glance
2023 Proposed Budget
Total Revenues $ 830,532
Total Expenditures $ 1,236,915
Fund Balance $ -
General Fund Costs $ 406,383
% Funded by General Fund 32.9%
Total Staffing 7.3 FTE
Organization
Darcy Paul, Mayor
Liang Chao, Vice Mayor
Kitty Moore, Council Member
Hung Wei, Council Member
Jon Willey, Council Member
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Proposed Budget
It is recommended that City Council approve a budget of $1,236,915 for the Council and Commissions department. This represents a decrease of $97,388 (-7.3%) from the FY 2021-22 Adopted Budget.
Contract Services have decreased because community funding requests have not been included in the Proposed Budget. Community funding requests will be included in the Adopted Budget.
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For Materials, actuals were lower in FY 2019-20 and FY 2020-21 because City Council technology budgets were not completely expended and conference and training expenses were reduced due to the pandemic.
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Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
52.6%
47.4% Commissions
City Council
$896k
$957k
$1.33M
$1.24M
2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget FY 2022-23 Proposed Budget Council and Commissions 169
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 586,473 $ 954,826 $ 1,054,877 $ 830,532 Miscellaneous Revenue $ - $ 10,986 $ - $ -
Total Revenues $ 586,473 $ 965,812 $ 1,054,877 $ 830,532 Expenditures
Employee Compensation $ 280,409 $ 327,344 $ 376,429 $ 352,312 Employee Benefits $ 158,895 $ 191,185 $ 259,737 $ 262,391 Materials $ 128,444 $ 101,704 $ 246,912 $ 256,738
Contract Services $ 147,776 $ 128,698 $ 182,053 $ 85,653 Cost Allocation $ 150,923 $ 206,675 $ 260,845 $ 271,261 Special Projects $ 29,202 $ 1,155 $ - $ -
Contingencies $ 40 $ - $ 8,327 $ 8,560
Total Expenditures $ 895,689 $ 956,761 $ 1,334,303 $ 1,236,915 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 309,217 $ (9,049) $ 279,426 $ 406,383 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.10 0.50 0.50 0.50
ASST DIR RECREATION COMM SVCS 0 0.05 0.05 0.15
CHIEF TECHNOLOGY OFFICER 0 0.02 0.02 0.02
COMMUNITY OUTREACH
SPECIALIST
0.10 0.10 0.10 0.10
COUNCIL MEMBER 5.00 5.00 5.00 5.00
DEPUTY BOARD CLERK 0.25 0 0 0
DIRECTOR OF COMM
DEVELOPMENT
0.06 0.06 0.06 0.06
DIRECTOR OF PARKS REC 0.05 0.05 0.05 0.05
EMERGENCY SERVICES
COORDINATOR
0 0.05 0.05 0.05
EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50
FINANCE MANAGER 0 0.05 0.05 0.05
MANAGEMENT ANALYST 0 0.10 0.10 0.10
PLANNING MANAGER 0.10 0.10 0.10 0.10
PUBLIC INFORMATION OFFICER 0.25 0.15 0.15 0.15
RECREATION COORDINATOR 0.30 0.45 0.45 0
RECREATION MANAGER 0 0 0 0.10
RECREATION SUPERVISOR 0 0.05 0.05 0
SENIOR PLANNER 0.10 0 0 0
SR OFFICE ASSISTANT 0.40 0.20 0.20 0.20
SUSTAINABILITY MANAGER 0.10 0.05 0.05 0.05
TRANSPORTATION MANAGER 0 0.10 0.10 0.10
Total 7.31 7.58 7.58 7.28
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City Council
Budget Unit 100-10-100
General Fund - City Council - City Council
Budget at a Glance
2023 Proposed Budget
Total Revenues $ 830,532
Total Expenditures $ 499,627
Fund Balance $ -
General Fund Costs $ (330,905)
% Funded by General Fund -66.2%
Total Staffing 5.9 FTE
Program Overview
The Mayor and councilmembers, acting as the elected representatives of the residents of Cupertino, establish public policies to meet the community needs of the City.
Service Objectives
The City Council objectives are carried out by City staff under the sole direction of the City Manager.
Proposed Budget
It is recommended that City Council approve a budget of $499,627 for the City Council program. This represents an increase of $19,877 (4.1%) from the FY 2021-22 Adopted Budget.
This is due to an increase in health insurance costs related to health plan options. Materials budgets are higher than historical actuals because the Mayor's Fund and City Council technology budgets have not been completely expended.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Council and Commissions 172
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 586,473 $ 954,826 $ 1,054,877 $ 830,532 Miscellaneous Revenue $ - $ 2,625 $ - $ -
Total Revenues $ 586,473 $ 957,451 $ 1,054,877 $ 830,532 Expenditures
Employee Compensation $ 123,015 $ 115,634 $ 137,839 $ 140,075 Employee Benefits $ 100,030 $ 99,883 $ 142,382 $ 158,879 Materials $ 91,900 $ 88,650 $ 175,529 $ 177,126
Contract Services $ 12,416 $ 8,626 $ 19,133 $ 18,653
Cost Allocation $ 39,560 $ - $ - $ -
Special Projects $ 29,202 $ 1,155 $ - $ -
Contingencies $ - $ - $ 4,867 $ 4,894
Total Expenditures $ 396,123 $ 313,948 $ 479,750 $ 499,627 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (190,350) $ (643,502) $ (575,127) $ (330,905) Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
COMMUNITY OUTREACH
SPECIALIST
0.10 0.10 0.10 0.10
COUNCIL MEMBER 5.00 5.00 5.00 5.00
EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50
PUBLIC INFORMATION OFFICER 0.15 0.10 0.10 0.10
SR OFFICE ASSISTANT 0.10 0.15 0.15 0.15
Total 5.85 5.85 5.85 5.85
There are no changes to the current level of staffing.
FY 2022-23 Proposed Budget Council and Commissions 173
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Community Funding
Budget Unit 100-10-101
General Fund - City Council - Community Funding
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 22,770
Fund Balance $ -
General Fund Costs $ 22,770
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
The Community Funding program provides funding for various community activities and community-based organizations throughout the fiscal year.
Service Objectives
Provide funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public.
Grant funding requests in a fair and equitable manner.
Grant funding requests per the updated Community Funding Policy adopted by City Council on December 1, 2020.
Proposed Budget
It is recommended that City Council approve a budget of $22,770 for the Community Funding program. This represents a decrease of $95,889 (-80.8%) from the FY 2021-22 Adopted Budget.
The decrease is because community funding requests have not been included in the Proposed Budget.
Community funding requests will be included in the Adopted Budget.
FY 2021-22 Community Funding Adopted Budget
FY 2022-23 Proposed Budget Council and Commissions 174
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Non-Profit Organization FY 21-22 Funding FY 21-22 Program/Project/Event West Valley Community Services
of Santa Clara County, Inc $10,000 Gift of Hope Holiday Program Cupertino Library Foundation $15,000 Empower and Connect Seniors Program Buddhist Tzu Chi Medical
Foundation $7,400 Community Health Fair
Santa Clara Valley Audubon
Society $8,500 Wildlife & Harvest Festival VideoProduction Friends of Deer Hollow Farm $7,000 Enclosed Garden Space Chinese American Coalition for
Compassionate Care $12,000 Starting the Conversation and Mindful SelfCare Valkyrie Robotics $3,000 Mini-Robot Competition
Tian Hong Foundation $3,000 Cross-cultural Art Contest
Rotary Club of Cupertino $12,000 Fall Festival
Euphrat Museum of Art $15,000 Exhibition, Events, Community Outreach Monta Vista High School Speech
Boosters Inc $3,000 Program Staffing and Materials Support Cupertino Historical Society $20,000 Museum and Archive Support Breathe California N/A N/A
Bhubaneswar Sister City N/A N/A
Elevate the Future N/A N/A
Silicon Valley Jewish Film Festival N/A N/A
Total 115,900
Organization did not apply for or receive a Community Funding Grant in FY 2021-22.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
1 1
1 1
1 1
1 1
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Miscellaneous Revenue $ - $ 8,361 $ - $ -
Total Revenues $ - $ 8,361 $ - $ -
Expenditures
Contract Services $ 114,800 $ 110,000 $ 115,900 $ 20,000 Cost Allocation $ 787 $ 1,240 $ 2,259 $ 2,270
Contingencies $ - $ - $ 500 $ 500
Total Expenditures $ 115,587 $ 111,240 $ 118,659 $ 22,770 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 115,587 $ 102,879 $ 118,659 $ 22,770 Staffing
There is no staffing associated with this program.
FY 2022-23 Proposed Budget Council and Commissions 176
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Sister Cities
Budget Unit 100-10-110
General Fund - City Council - Sister Cities
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 64,006
Fund Balance $ -
General Fund Costs $ 64,006
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
Cupertino has four active sister cities registered with Sister Cities International; Toyokawa, Japan; Hsinchu, Taiwan; Copertino, Italy; and Bhubaneswar, India.
Service Objectives
To further international communication and understanding through the Sister City Program To foster educational, technical, economic and cultural exchanges To encourage student exchange programs to promote communication and understanding among people of different cultures
Proposed Budget
It is recommended that City Council approve a budget of $64,006 for the Sister Cities program. This represents a decrease of $13,576 (-17.5%) from the FY 2021-22 Adopted Budget.
The increase is due to an increase in Cost Allocation expenses. Cost Allocation expenses decreased due to no recruitments in FY 2020-21.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Council and Commissions 177
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 17,141 $ 12,301 $ 13,229 $ 12,005 Employee Benefits $ 6,767 $ 5,727 $ 5,956 $ 6,066
Materials $ 5,016 $ 768 $ 5,830 $ 5,830
Contract Services $ 9,560 $ 4,235 $ 20,000 $ 20,000
Cost Allocation $ 11,398 $ 37,129 $ 31,921 $ 19,459
Contingencies $ - $ - $ 646 $ 646
Total Expenditures $ 49,882 $ 60,160 $ 77,582 $ 64,006
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 49,881 $ 60,160 $ 77,582 $ 64,006
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget PUBLIC INFORMATION OFFICER 0.10 0.05 0.05 0.05
SR OFFICE ASSISTANT 0.30 0.05 0.05 0.05
Total 0.40 0.10 0.10 0.10
There are no changes to the current level of staffing.
FY 2022-23 Proposed Budget Council and Commissions 178
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Technology, Information & Communications
Commission
Budget Unit 100-11-131
General Fund - Commissions - Technology, Information & Communications Commission Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 39,481
Fund Balance $ -
General Fund Costs $ 39,481
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Technology, Information & Communications Commission (TICC) advises the City Council and informs the community about issues relating to the rapidly changing fields of communication and technology.
Commissioners also serve as a resource for the Planning Commission in offering technical guidance for antenna sightings. The Chief Technology Officer serves as staff liaison. The commission also supports public and educational access to cable services.
Service Objectives
Continue to work with appropriate companies in bringing advanced services to interested residents.
Monitor AT&T and Comcast services and revenue.
Negotiate and manage public access provider KMVT to ensure maximum programming value for Cupertino residents.
Work with Community Development and Public Works regarding antenna placement and negotiate agreements for communication services that serve Cupertino.
Proposed Budget
It is recommended that City Council approve a budget of $39,481 for the Technology, Information & Communications Commission program. This represents an increase of $2,356 (6.3%) from the FY 2021-22 Adopted Budget.
The increase is due to increased Cost Allocation costs for Finance. The Technology, Information & Communications Commission pays for support from Finance through the Cost Allocation Plan (CAP).
Revenues and Expenditures
FY 2022-23 Proposed Budget Council and Commissions 179
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 4,171 $ 9,860 $ 10,116 $ 10,116 Employee Benefits $ 1,889 $ 3,476 $ 4,580 $ 4,675
Materials $ 107 $ - $ 1,218 $ 1,348
Contract Services $ - $ - $ 5,000 $ 5,000
Cost Allocation $ 1,207 $ 3,650 $ 16,056 $ 18,183
Contingencies $ - $ - $ 155 $ 159
Total Expenditures $ 7,374 $ 16,986 $ 37,125 $ 39,481
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 7,374 $ 16,986 $ 37,125 $ 39,481
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
CHIEF TECHNOLOGY OFFICER 0 0.02 0.02 0.02
Total 0.05 0.07 0.07 0.07
There are no changes to the current level of staffing.
FY 2022-23 Proposed Budget Council and Commissions 180
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Library Commission
Budget Unit 100-11-140
General Fund - Commissions - Library Commission
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 51,371
Fund Balance $ -
General Fund Costs $ 51,371
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Library Commission is a five-member commission appointed by the City Council to review and make recommendations related to the operations and services of the Cupertino Library. The Cupertino Library is operated by Santa Clara County Library Services. The building is provided by the City of Cupertino. County Library management serve as Commission staff and a Parks and Recreation Department Recreation Manager serves as the City staff liaison.
Service Objectives
Monitor the various service activities of the library and make recommendations for improvements to appropriate bodies.
Support library advocacy groups, including Friends of the Cupertino Library and Cupertino Library Foundation.
Consult with and act as liaison with private community groups supportive of Library programs.
Represent the Cupertino library in the local community.
Participate in state and local library workshops and conferences.
Participate in the long-range planning of quality library services for the City.
Investigate ways to expand access to non-traditional media.
Continue library advocacy in Cupertino activities and with other organizations.
Coordinate and implement the annual Cupertino Poet Laureate program and provide staff support and City resources to sustain the program.
Continue emphasis on integrating additional technology into library services.
Proposed Budget
It is recommended that City Council approve a budget of $51,371 for the Library Commission program. This represents an increase of $3,030 (6.3%) from the FY 2021-22 Adopted Budget.
This increase is mainly due to increases in Cost Allocation expenses. Cost Allocation expenses increased due to a recruitment in FY 2020-21.
FY 2022-23 Proposed Budget Council and Commissions 181
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 5,892 $ 6,612 $ 20,220 $ 10,563 Employee Benefits $ 840 $ 3,040 $ 10,136 $ 5,465
Materials $ 589 $ 137 $ 344 $ 389
Contract Services $ - $ 366 $ 2,020 $ 2,000
Cost Allocation $ 11,479 $ 14,126 $ 15,562 $ 32,894
Contingencies $ - $ - $ 59 $ 60
Total Expenditures $ 18,800 $ 24,281 $ 48,341 $ 51,371
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 18,801 $ 24,281 $ 48,341 $ 51,371
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0 0.05 0.05 0.05
ASST DIR RECREATION COMM
SVCS
0 0.05 0.05 0
RECREATION MANAGER 0 0 0 0.05
RECREATION SUPERVISOR 0 0.05 0.05 0
Total 0 0.15 0.15 0.10
Staff time is being reallocated based on the reorganization of the Department and duties assigned.
FY 2022-23 Proposed Budget Council and Commissions 182
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Fine Arts Commission
Budget Unit 100-11-142
General Fund - Commissions - Fine Arts Commission
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 73,624
Fund Balance $ -
General Fund Costs $ 73,624
% Funded by General Fund 100.0%
Total Staffing 0.2 FTE
Program Overview
The Fine Arts Commission is a five member commission appointed by the City Council to foster, encourage and assist the realization, preservation and advancement of fine arts for the benefit of the citizens of Cupertino.
The Assistant Director of Parks and Recreation serves as the staff liaison.
Service Objectives
Act as a catalyst for the promotion of fine arts activities and provide liaison and coordination between fine arts activities, groups, and facilities.
Enhance the interaction between arts and businesses through personal outreach.
Review and approve public art proposals.
Review and select deserving artists in recognition of local talent through the Distinguished, Emerging, and Young Artist Awards.
Encourage and facilitate "art in unexpected places" throughout the City.
Proposed Budget
It is recommended that City Council approve a budget of $73,624 for the Fine Arts Commission program. This represents an increase of $7,156 (10.8%) from the FY 2021-22 Adopted Budget.
The increase is mainly due to increases in Employee Compensation and Benefits, as a result of the reorganization of the Department.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Council and Commissions 183
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 17,260 $ 14,378 $ 14,920 $ 28,378 Employee Benefits $ 6,589 $ 8,531 $ 9,309 $ 11,769
Materials $ 3,258 $ 2,949 $ 6,673 $ 6,926
Contract Services $ - $ 3,671 $ 10,000 $ 10,000
Cost Allocation $ 12,688 $ 22,787 $ 25,149 $ 16,128
Contingencies $ 40 $ - $ 417 $ 423
Total Expenditures $ 39,835 $ 52,316 $ 66,468 $ 73,624
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 39,836 $ 52,316 $ 66,468 $ 73,624
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ASST DIR RECREATION COMM
SVCS
0 0 0 0.15
DEPUTY BOARD CLERK 0.05 0 0 0
RECREATION COORDINATOR 0 0.15 0.15 0
SENIOR PLANNER 0.10 0 0 0
Total 0.15 0.15 0.15 0.15
Staff time is being reallocated based on the reorganization of the Department and duties assigned.
FY 2022-23 Proposed Budget Council and Commissions 184
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Public Safety Commission
Budget Unit 100-11-150
General Fund - Commissions - Public Safety Commission
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 45,192
Fund Balance $ -
General Fund Costs $ 45,192
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Public Safety Commission (PSC), a five-member board appointed by the City Council, assists the Council by advising on maWers pertaining to safety, traffic, police, fire and other areas wherein the maWer of public safety may be of concern.
Service Objectives
Advise the City Council on safety issues and concerns.
Promote public education programs concerning safety issues.
Provide assistance in implementing public safety programs approved by the City Council.
Proposed Budget
It is recommended that City Council approve a budget of $45,192 for the Public Safety Commission program.
This represents an increase of $9,586 (26.9%) from the FY 2021-22 Adopted Budget.
In anticipation of potential COVID-19 surges, the proposed budget includes additional funds to host and logistically support the Public Safety Forum outdoors in Civic Center Plaza Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Council and Commissions 185
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 1,141 $ 5,148 $ 7,785 $ 7,785
Employee Benefits $ 591 $ 2,475 $ 4,030 $ 4,116
Materials $ 1,460 $ 100 $ 4,496 $ 10,288
Contract Services $ 10,000 $ - $ 10,000 $ 10,000
Cost Allocation $ 993 $ 8,514 $ 8,933 $ 12,496
Contingencies $ - $ - $ 362 $ 507
Total Expenditures $ 14,185 $ 16,237 $ 35,606 $ 45,192
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 14,185 $ 16,238 $ 35,606 $ 45,192
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
EMERGENCY SERVICES
COORDINATOR
0 0.05 0.05 0.05
Total 0 0.05 0.05 0.05
FY 2022-23 Proposed Budget Council and Commissions 186
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Bicycle and Pedestrian Commission
Budget Unit 100-11-155
General Fund - Commissions - Bicycle and Pedestrian Commission Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 62,230
Fund Balance $ -
General Fund Costs $ 62,230
% Funded by General Fund 100.0%
Total Staffing 0.2 FTE
Program Overview
The Bicycle and Pedestrian Commission (BPC) is a five-member board appointed by the City Council, which assists the Council by reviewing, monitoring, and making recommendations on City transportation maWers pertaining to bicycle and pedestrian traffic, parking, education, and recreation within Cupertino. The City’s Transportation Manager serves as staff liaison.
Service Objectives
Review and make recommendations on City transportation infrastructure, development standards, public and private development projects, and citizen outreach and education efforts as they affect bicycle and pedestrian traffic in the City of Cupertino.
Promote safe, efficient, and enjoyable travel for bicycle and pedestrian traffic within Cupertino.
Proposed Budget
It is recommended that City Council approve a budget of $62,230 for the Bicycle and Pedestrian Commission program. This represents an increase of $14,499 (30.4%) from the FY 2021-22 Adopted Budget.
The increase is due to an increase in Cost Allocation expenses. Cost Allocation expenses increased due to a recruitment in FY 2020-21.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Council and Commissions 187
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ - $ 21,519 $ 24,606 $ 24,704
Employee Benefits $ - $ 8,638 $ 12,212 $ 12,502
Materials $ - $ - $ 202 $ 210
Cost Allocation $ 807 $ 825 $ 10,706 $ 24,809
Contingencies $ - $ - $ 5 $ 5
Total Expenditures $ 807 $ 30,982 $ 47,731 $ 62,230
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 807 $ 30,982 $ 47,731 $ 62,230
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget ADMINISTRATIVE ASSISTANT 0 0.05 0.05 0.05
TRANSPORTATION MANAGER 0 0.10 0.10 0.10
Total 0 0.15 0.15 0.15
There are no changes to current level of staffing.
FY 2022-23 Proposed Budget Council and Commissions 188
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Parks and Recreation Commission
Budget Unit 100-11-160
General Fund - Commissions - Parks and Recreation Commission Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 53,085
Fund Balance $ -
General Fund Costs $ 53,085
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Parks and Recreation Commission is a five-member commission appointed by the City Council to make recommendations pertaining to parks, recreation, and community services. The Director of Parks and Recreation serves as staff liaison.
Service Objectives
Engage the public in dialog regarding the design of new facilities.
Make recommendations regarding these projects to the City Council.
Work with staff and the public to draft and/or revise policies for use of Parks and Recreation facilities.
Consider public input regarding the operation of Parks and Recreation facilities and make recommendations for their improvement.
Participate in special committees dealing with Parks and Recreation.
Serve as ambassadors for the Parks and Recreation Department.
Proposed Budget
It is recommended that City Council approve a budget of $53,085 for the Parks and Recreation Commission program. This represents a decrease of $4,378 (-7.6%) from the FY 2021-22 Adopted Budget.
The decrease is mainly due to a reduction in Cost Allocation expenses. Cost Allocation expenses decreased due to no recruitments in FY 2020-21.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Council and Commissions 189
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 17,828 $ 15,968 $ 17,280 $ 17,531 Employee Benefits $ 3,765 $ 6,403 $ 7,610 $ 7,455
Materials $ 1,207 $ - $ 7,442 $ 7,724
Cost Allocation $ 12,165 $ 19,376 $ 24,945 $ 20,182
Contingencies $ - $ - $ 186 $ 193
Total Expenditures $ 34,965 $ 41,747 $ 57,463 $ 53,085
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 34,965 $ 41,747 $ 57,463 $ 53,085
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
DIRECTOR OF PARKS REC 0.05 0.05 0.05 0.05
Total 0.10 0.10 0.10 0.10
There are no changes to the current level of staffing.
FY 2022-23 Proposed Budget Council and Commissions 190
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Teen Commission
Budget Unit 100-11-165
General Fund - Commissions - Teen Commission
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 46,076
Fund Balance $ -
General Fund Costs $ 46,076
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Teen Commission is comprised of nine teens representing grades 8-11. The Teen Commission advises the City Council and staff on teen issues. A Parks and Recreation Department Recreation Manager serves as the staff liaison.
Service Objectives
Engage the public in dialogue regarding the design of new teen programs and make recommendations regarding these projects to City staff.
Assist staff with the programming and promotion of the Teen Center.
Assist staff with the evaluation of teen programming.
Work with staff and the public to create new avenues to interact with teens.
Proposed Budget
It is recommended that City Council approve a budget of $46,076 for the Teen Commission program. This represents a decrease of $35,002 (-43.2%) from the FY 2021-22 Adopted Budget.
The decrease is mainly due to decreases in Employee Compensation and Benefits, as a result of the reorganization of the Department.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Council and Commissions 191
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 29,503 $ 32,154 $ 29,840 $ 6,300 Employee Benefits $ 12,360 $ 13,118 $ 14,640 $ 5,748
Materials $ 5,556 $ 49 $ 4,514 $ 4,685
Cost Allocation $ 16,728 $ 28,449 $ 31,971 $ 29,226
Contingencies $ - $ - $ 113 $ 117
Total Expenditures $ 64,147 $ 73,770 $ 81,078 $ 46,076
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 64,147 $ 73,771 $ 81,078 $ 46,076
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget RECREATION COORDINATOR 0.30 0.30 0.30 0
RECREATION MANAGER 0 0 0 0.05
Total 0.30 0.30 0.30 0.05
Staff time is being reallocated based on the reorganization of the Department and duties assigned.
FY 2022-23 Proposed Budget Council and Commissions 192
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Planning Commission
Budget Unit 100-11-170
General Fund - Commissions - Planning Commission
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 121,496
Fund Balance $ -
General Fund Costs $ 121,496
% Funded by General Fund 100.0%
Total Staffing 0.3 FTE
Program Overview
The Planning Commission is a five-member citizen board appointed by the City Council. The functions of the Planning Commission are as follows:
Advise the City Council on land use and development policy related to the General Plan; Implement the General Plan through review and administration of specific plans and related ordinances; Review land use applications for conformance with the General Plan and ordinances; and Promote the coordination of local plans and programs with regional and other agencies.
Service Objectives
Conduct periodic reviews of the General Plan. These reviews test the fundamental goals and measure the performance of short-term objectives.
Conduct public hearings for approximately 80 land development applications every year. Ensure that decisions are made fairly and expeditiously in accordance with adopted General Plan policies, zoning ordinances, development plans, and design guidelines.
Review specific plans, zoning ordinance amendments, and amendments to the General Plan and make recommendations to Council.
Serve on the Planning Commission Design Review CommiWee, the Environmental Review CommiWee, and in an advisory role to the Housing Commission and Economic Development Committee.
Proposed Budget
It is recommended that City Council approve a budget of $121,496 for the Planning Commission program. This represents a decrease of $9,749 (-7.4%) from the FY 2021-22 Adopted Budget.
The decrease is primarily due to a decrease in employee compensation due to a change in staff.
Revenues and Expenditures
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 32,741 $ 39,547 $ 40,557 $ 34,949 Employee Benefits $ 11,231 $ 14,806 $ 18,610 $ 15,248
Materials $ 18,766 $ 8,488 $ 33,715 $ 34,997
Cost Allocation $ 18,624 $ 30,715 $ 37,520 $ 35,427
Contingencies $ - $ - $ 843 $ 875
Total Expenditures $ 81,362 $ 93,556 $ 131,245 $ 121,496 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 81,362 $ 93,556 $ 131,245 $ 121,496 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0 0.20 0.20 0.20
DEPUTY BOARD CLERK 0.15 0 0 0
DIRECTOR OF COMM
DEVELOPMENT
0.06 0.06 0.06 0.06
Total 0.21 0.26 0.26 0.26
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Housing Commission
Budget Unit 100-11-175
General Fund - Commissions - Housing Commission
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 61,468
Fund Balance $ -
General Fund Costs $ 61,468
% Funded by General Fund 100.0%
Total Staffing 0.2 FTE
Program Overview
The Cupertino Housing Commission (CHC) is a five-member board appointed by the City Council to assist the Planning Commission and the City Council in developing housing policies and strategies for implementation of General Plan Housing Element goals. The Commission also oversees the Community Development Block Grant (CDBG) program.
Service Objectives
Assist the Planning Commission and the City Council in developing housing policies and strategies for implementation of general plan housing element goals;
Recommend policies for implementation and monitoring of affordable housing projects; Facilitate innovative approaches to affordable housing development and to generate ideas and interest in pursuing a variety of housing options;
When requested by the Director of Community Development or the City Council, to make recommendations to the Planning Commission and the City Council regarding affordable housing proposals in connection with applications for development.
Make recommendations regarding requests for money from the CDBG and Affordable Housing Funds; Provide information about affordable housing;
Meet with neighborhood, community, regional and business groups as necessary to receive input and assist in generating affordable housing;
Help identify sources of funds to develop and build affordable housing; and Perform any other advisory functions authorized by the City Council.
Proposed Budget
It is recommended that City Council approve a budget of $61,468 for the Housing Commission program. This represents a decrease of $1,293 (-2.1%) from the FY 2021-22 Adopted Budget.
This budget is relatively unchanged since last fiscal year.
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 19,925 $ 22,012 $ 24,668 $ 24,783 Employee Benefits $ 9,156 $ 10,366 $ 12,241 $ 12,135
Materials $ 244 $ 163 $ 989 $ 1,027
Cost Allocation $ 12,510 $ 21,610 $ 24,838 $ 23,497
Contingencies $ - $ - $ 25 $ 26
Total Expenditures $ 41,835 $ 54,151 $ 62,761 $ 61,468
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 41,835 $ 54,150 $ 62,761 $ 61,468
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget ADMINISTRATIVE ASSISTANT 0 0.05 0.05 0.05
DEPUTY BOARD CLERK 0.05 0 0 0
PLANNING MANAGER 0.10 0.10 0.10 0.10
Total 0.15 0.15 0.15 0.15
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Sustainability Commission
Budget Unit 100-11-180
General Fund - Commissions - Sustainability Commission
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 60,983
Fund Balance $ -
General Fund Costs $ 60,983
% Funded by General Fund 100.0%
Total Staffing 0.2 FTE
Program Overview
The Sustainability Commission is a five-member board appointed by the City Council to serve in an advisory capacity by providing expertise and guidance on major policy and programmatic areas related to the environmental, economic and societal goals noted within Cupertino’s Climate Action Plan and General Plan Environmental Resources/Sustainability Element.
Service Objectives
Monitor implementation of the Climate Action Plan based upon quantified metrics to measure and evaluate mitigated impacts and community benefits.
Suggest recommendations, review, and monitor the City’s General Plan Environmental Resources/Sustainability Element and its intersections with the CAP.
Advise the City Council how to strategically accelerate Cupertino’s progress towards sustainability and recommend priorities to promote continued regional leadership in sustainability.
Periodically review policies governing specific practices and programs, such as greenhouse gas emissions reduction, water conservation, renewable energy, energy efficiency, materials management, and urban forestry. Illustrative examples include the creation of infrastructure for low emissions vehicles, installation of renewable energy or energy efficiency technologies, draNing of water conservation or waste reduction policies, delivery of habitat restoration and conservation programs, design and roll-out of pollution prevention campaigns, etc.
Make recommendations regarding the allocation of funds for infrastructure and technology improvements to elevate the operational performance of City facilities, businesses, educational institutions, and homes by reducing costs, improving public health, and serving community needs.
Accept public input on the subject areas noted above and advise the City Council on ways to drive community awareness, behavior change, education and participation in City programs modeled upon the field’s best practices.
Review and make recommendations to the City Council on Federal, State and regional policies related to sustainability that have the potential to impact City Council’s goals and policies.
Pursue any other activity or scope that may be deemed appropriate and necessary by the City Council.
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Proposed Budget
It is recommended that City Council approve a budget of $60,983 for the Sustainability Commission program.
This represents a decrease of $2,055 (-3.3%) from the FY 2021-22 Adopted Budget.
This budget is relatively unchanged from last fiscal year.
Special Projects
The following table shows the special projects for the fiscal year.
There are no special projects proposed for the Sustainability Commission this fiscal year.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 11,792 $ 18,431 $ 20,618 $ 21,648 Employee Benefits $ 5,674 $ 9,704 $ 11,189 $ 11,776
Materials $ 341 $ 400 $ 5,960 $ 6,188
Contract Services $ 1,000 $ 1,800 $ - $ -
Cost Allocation $ 11,977 $ 18,254 $ 25,122 $ 21,216
Contingencies $ - $ - $ 149 $ 155
Total Expenditures $ 30,784 $ 48,589 $ 63,038 $ 60,983
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 30,784 $ 48,589 $ 63,038 $ 60,983
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget MANAGEMENT ANALYST 0 0.10 0.10 0.10
SUSTAINABILITY MANAGER 0.10 0.05 0.05 0.05
Total 0.10 0.15 0.15 0.15
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There are no changes to the current level of staffing.
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Audit Committee
Budget Unit 100-11-190
General Fund - Commissions - Audit Committee
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 35,506
Fund Balance $ -
General Fund Costs $ 35,506
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Audit CommiWee, consisting of two City Council members and a minimum of two and a maximum of three at large members, hold the following powers and functions:
To review the annual audit report and management letter.
To recommend appointment of internal/external auditors.
To review the monthly Treasurer's report.
To recommend a budget format.
To review City investment policies and internal controls of such policies.
To review internal audit reports.
The Audit Committee meets monthly. The Finance Manager serves as staff liaison.
Service Objectives
To review the annual audit report and management letter; To recommend appointment of internal/external auditors; To review the monthly Treasurer's report;
To recommend a budget format;
To review City investment policies and internal controls of such policies.
To review internal audit reports.
Proposed Budget
It is recommended that City Council approve a budget of $35,506 for the Audit CommiWee program. This represents an increase of $8,050 (29.3%) from the FY 2021-22 Adopted Budget.
The increase in Cost Allocation expenses is due to the allocation of staffing to this program in FY 2020-21.
Revenues and Expenditures
FY 2022-23 Proposed Budget Council and Commissions 200
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ - $ 13,780 $ 14,751 $ 13,475
Employee Benefits $ 3 $ 5,018 $ 6,842 $ 6,557
Cost Allocation $ - $ - $ 5,863 $ 15,474
Total Expenditures $ 3 $ 18,798 $ 27,456 $ 35,506
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 3 $ 18,798 $ 27,456 $ 35,506
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget ADMINISTRATIVE ASSISTANT 0 0.05 0.05 0.05
FINANCE MANAGER 0 0.05 0.05 0.05
Total 0 0.10 0.10 0.10
There are no changes to the current level of staffing.
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Administration
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Department Overview
Budget Units
Budget Unit Program 2023 Proposed Budget
City Manager $ 5,450,600
100-12-120 City Manager $ 1,637,369
100-12-122 Sustainability $ 763,464
100-12-126 Office of Communications $ 977,517
100-12-305 Multimedia $ 438,792
100-12-307 Public Access Support $ 79,249
100-12-632 Community Outreach and Neighborhood Watch $ 213,823 100-12-633 Office of Emergency Management $ 706,493
100-12-705 Economic Development $ 633,893
City Clerk $ 909,333
100-13-130 City Clerk $ 719,419
100-13-132 Duplicating and Mail Services $ 49,075
100-13-133 Elections $ 140,839
City Manager Discretionary $ 75,000
100-14-123 City Manager Contingency $ 75,000
City Attorney $ 1,574,133
100-15-141 City Attorney $ 1,574,133
Total $ 8,009,066
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Budget at a Glance
2023 Proposed Budget
Total Revenues $ 1,469,823
Total Expenditures $ 8,009,066
Fund Balance $ -
General Fund Costs $ 6,529,243
% Funded by General Fund 81.5%
Total Staffing 22.3 FTE
Organization
Jim Throop, City Manager
Dianne Thompson, Assistant City Manager
Christopher Jensen, City Attorney
Kirsten Squarcia, City Clerk
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City Manager's Office
City Attorney's Office
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Performance Measures
City Clerk Division
Goal: Streamline information processing for Council, staff, and community members for compliance with State requirements and facilitate independent and transparent access to public information.
Benefit: All can fully participate in local government to achieve the community & organizational goals.
Performance Measure
FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Ongoing
Target
City Council minutes for meetings
presented for Council approval by the
following regular meeting
100% 100% 100% 100%
Adopted City Council resolutions and
ordinances processed and scanned to
Laserfiche within a week of Clerk’s
office receipt of final, signed document
60% 80% 80% 100%
Public Record Act requests responded
to by the Statutory deadline date 100% 100% 100% 100%
Office of Communications
Goal: Promote and increase interest and participation in City services, programs, initiatives, and projects while building community pride and positive identification with the City among its residents.
Benefit: Residents have access to timely, engaging, and important information.
Performance Measure
FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Ongoing
Target
Social media engagement: total
number of followers including City
Hall Nextdoor, Facebook, Twitter, and
Instagram accounts
31,906 35,177 37,367 10% annual
increase
Social media engagement: average
number of engagements (reactions,
comments, shares, and clicks) per post
on City Hall Facebook account
72.3 66.5 85.1 10% annual
increase
Cupertino 311: Average response time
to customers organization-wide (in
days):
2.8 Days 3.5 Days 3.3 Days Average Close
Time 5 Days
Sustainability Division
Goal: Implement Cupertino's Climate Action Plan and General Plan Sustainability Element to achieve quantifiable emissions reductions, conserve finite resources, and achieve utility cost avoidance and savings FY 2022-23 Proposed Budget Administration 208
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across municipal operations and community partners.
Benefit: Cupertino is a healthy, resilient, environmentally-vibrant city for current and future residents to live, work, learn and play.
Performance Measure FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Ongoing
Target
% community-wide emissions reduced
from baseline of 307,288 MT CO2e/yr 2018 inventory: 24% decrease in emissions from baseline (258,659 MT CO2e/yr)
15% reduction by
2020 (261,195 MT
CO2e/yr)
Initiate and implement all Climate
Action Plan near-term measures:
% initiated
% complete or ongoing
100%
79%
100%
79%
100%
79%
100%
100%
% municipal operations emissions
reduced from baseline of 1,865 MT
CO2e/yr
2018 inventory: 66%reduction in emissions from
baseline: 642 MTCO2e
15% reduction by
2020
Cupertino's GHG inventories are conducted roughly every 3-5 years.
Economic Development Division
Goal: To actively pursue opportunities in the areas of business aWraction, retention, and expansion as a means of promoting economic vitality, and strengthening the City's sales tax base to support Cupertino's excellent quality of life for its residents, businesses, and daytime population.
Benefit: Cupertino's economy and sales tax revenue base are diversified to further enhance the City's financial stability and its ability to provide quality amenities to the community.
Performance Measure
FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Ongoing
Target
Maintain Economic Development
Business Connect Subscribers 2,000 2,500 2,500 2,800
Economic Development Business
Workshops & Events 11 3* 2 12 per year
*limited due to COVID
Multimedia Division
Multimedia Division has been moved under the Innovation & Technology Department. 1 1
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Workload Indicators
City Clerk Division
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
City Council minutes for regular meetings
presented for Council approval by the
following regular meeting
22/22 15/15 25/25
Adopted City Council resolutions and
ordinances processed and scanned to
Laserfiche within a week of Clerk’s office
receipt of final, signed document
182/272; 12/18 148/185; 10/12 45/56; 7/9
Public Record Act requests responded to by
the Statutory deadline date 104/104 94/94 139/139
Office of Communications
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Social Media Engagement: Post per year
(Facebook, Nextdoor, Twitter, Instagram) 1,182 1,634 595 Number of Projects Created on Engage
Cupertino N/A N/A 6
Number of Community Information and
Outreach Program products provided
(newsletters, press releases, website news
postings)
373 248 105
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Sustainability Division
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Number of local businesses visited/reached
out to as part of GreenBiz program outreach
(est)
36 6 7
Events related to increasing awareness of
reducing greenhouse gas emissions in the
community (staff organized or staff tabled)
(est)
10 7 15
Sustainability related metrics tracked and/or
analyzed (est) 90 90 90
Climate Action Plan action steps initiated or
implemented (est) 64 94 99
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Economic Development Division
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Meetings with large groups/organizations;
appointments with brokers, prospective
business owners, business owners and
operators, City staff, etc.
78* 68* 19
Special events, including small business
workshops and seminars, ICSC conferences
and events, ribbon cuttings and grand
openings, and Small Business Saturday
Celebration
N/A N/A 3
Presentations to local organizations and
visiting delegations. N/A N/A 0
Respond to call and email inquires N/A N/A 20
* This is an estimate based on the best information available Multimedia Division
Multimedia Division has been moved under the Innovation & Technology Department.
Proposed Budget
It is recommended that City Council approve a budget of $8,009,066 for the Administration department. This represents an increase of $379,437 (5.0%) from the FY 2021-22 Adopted Budget.
The increase in compensation and benefits is due to requests for a Limited-Term Communications Analyst and an Administrative Assistant, as well as insourcing of the City AWorney's Office. The transition from outsourced to in-house attorneys has increased compensation and benefits and decreased contract services.
The increase from FY 2019-20 actuals to FY 2022-23 is primarily due to compensation and benefits and special projects that vary from year to year. Compensation and benefits increased due to the addition of new positions, the transfer of programs from other City departments to the City Manager's Office, and the insourcing of the City AWorney's Office. Special Projects increased because new special projects were added in FY 2022-23. For Materials, actuals were lower in FY 2019-20 and FY 2020-21 because conference and training budgets were not completely expended due to the pandemic.
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Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
68.1%
19.7%
11.4%
City Manager
City Attorney
City Clerk
City Manager Discretionary
$6.06M
$6.70M
$7.63M
$8.01M
2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget FY 2022-23 Proposed Budget Administration 213
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Intergovernmental Revenue $ 33,209 $ 45,516 $ - $ -
Charges for Services $ 1,137,815 $ 1,399,287 $ 1,739,136 $ 1,469,823 Miscellaneous Revenue $ 14,494 $ 19,634 $ - $ -
Total Revenues $ 1,185,518 $ 1,464,437 $ 1,739,136 $ 1,469,823 Expenditures
Employee Compensation $ 1,860,354 $ 2,606,217 $ 2,944,170 $ 3,697,318 Employee Benefits $ 699,664 $ 1,061,161 $ 1,288,316 $ 1,601,824 Materials $ 297,319 $ 327,504 $ 425,135 $ 535,812
Contract Services $ 2,702,604 $ 1,973,653 $ 2,237,070 $ 1,362,790 Cost Allocation $ 469,747 $ 481,712 $ 513,713 $ 468,859 Special Projects $ 31,841 $ 247,344 $ 120,900 $ 220,000 Contingencies $ - $ - $ 100,325 $ 122,463
Total Expenditures $ 6,061,529 $ 6,697,591 $ 7,629,629 $ 8,009,066 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 4,876,011 $ 5,233,153 $ 5,890,493 $ 6,529,243 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0 0 0 1.00
ASSISTANT CITY MANAGER 1.00 1.00 1.00 1.00
ASSIST TO THE CITY MNGR 1.00 1.00 1.00 0
CITY ATTORNEY 0 0 0 1.00
CITY CLERK 1.00 1.00 1.00 1.00
CITY MANAGER 1.00 1.00 1.00 1.00
COMMUNICATIONS ANALYST 0 0 0 1.00
COMMUNITY OUTREACH SPECIALIST 1.20 1.20 1.20 0.90
COMMUNITY RELATIONS COORD 0.75 0.75 0.75 1.00
DEPUTY CITY CLERK 1.00 1.00 1.00 1.00
DEPUTY CITY MANAGER 0 0 0 1.00
ECONOMIC DEVELOPMENT
MANAGER
1.00 0 0 1.00
EMERGENCY SERVICES
COORDINATOR
1.00 0.95 0.95 0.95
ENVIRONMENTAL PROGRAMS
ASSISTANT
0 0.35 0.35 0.35
EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50
LEGAL SERVICES MANAGER 1.00 1.00 1.00 1.00
MANAGEMENT ANALYST 0.70 1.70 2.70 2.70
MULTIMEDIA COMMUNICATIONS
SPEC
0 3.00 3.00 1.50
PUBLIC INFORMATION OFFICER 0.75 0.85 0.85 0.85
SENIOR ASSISTANT CITY ATTORNEY 0 0 0 1.00
SR OFFICE ASSISTANT 1.60 1.80 1.80 1.80
SUSTAINABILITY MANAGER 0.70 0.75 0.75 0.75
Total 14.20 17.85 18.85 22.30
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City Manager
Budget Unit 100-12-120
General Fund - City Manager - City Manager
Budget at a Glance
2023 Proposed Budget
Total Revenues $ 631,098
Total Expenditures $ 1,637,369
Fund Balance $ -
General Fund Costs $ 1,006,271
% Funded by General Fund 61.5%
Total Staffing 4.9 FTE
Program Overview
The City Manager is responsible to the City Council for the effective and efficient operation of the City. Under the direction of the City Council as a whole, the City Manager carries out the City’s goals and objectives.
Service Objectives
Accomplish the Council-approved City Work Program.
Manage City operations.
Ensure all laws and ordinances of the City are duly enforced and that all franchises, permits, licenses, and privileges granted by the City are faithfully performed and observed.
Advise the City Council on policy, and the financial conditions and needs of the City.
Investigate all complaints concerning the operation of the City.
Prepare reports and initiate recommendations as may be desirable or as requested by the City Council.
Ensure that the City’s policies and procedures provide a foundation for a secure financial position.
Proposed Budget
It is recommended that City Council approve a budget of $1,637,369 for the City Manager program. This represents an increase of $115,548 (7.6%) from the FY 2021-22 Adopted Budget.
This increase is primarily due to the addition of a Legislative Strategy consultant.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Intergovernmental Revenue $ 33,209 $ 36,716 $ - $ -
Charges for Services $ 401,525 $ 452,422 $ 637,444 $ 631,098 Total Revenues $ 434,734 $ 489,138 $ 637,444 $ 631,098
Expenditures
Employee Compensation $ 760,394 $ 885,438 $ 964,238 $ 1,032,843 Employee Benefits $ 269,702 $ 310,212 $ 402,900 $ 414,431 Materials $ 37,468 $ 14,328 $ 49,338 $ 53,887
Contract Services $ 91,435 $ 137,342 $ 101,572 $ 131,572 Cost Allocation $ 40,423 $ - $ - $ -
Special Projects $ - $ 17,432 $ - $ -
Contingencies $ - $ - $ 3,773 $ 4,636
Total Expenditures $ 1,199,422 $ 1,364,752 $ 1,521,821 $ 1,637,369 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 764,687 $ 875,614 $ 884,377 $ 1,006,271 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ASSISTANT CITY MANAGER 1.00 1.00 1.00 1.00
ASSIST TO THE CITY MNGR 1.00 1.00 1.00 0
CITY MANAGER 1.00 1.00 1.00 1.00
DEPUTY CITY MANAGER 0 0 0 1.00
EXEC ASST TO THE CITY
COUNCIL
0 0.50 0.50 0.50
MANAGEMENT ANALYST 0 1.00 1.00 1.00
SR OFFICE ASSISTANT 0.40 0.40 0.40 0.40
Total 3.40 4.90 4.90 4.90
The Assistant to the City Manager position was reclassified to Deputy City Manager.
FY 2022-23 Proposed Budget Administration 217
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Sustainability
Budget Unit 100-12-122
General Fund - City Manager - Sustainability
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 763,464
Fund Balance $ -
General Fund Costs $ 763,464
% Funded by General Fund 100.0%
Total Staffing 1.8 FTE
Program Overview
The Sustainability Division works to implement the City's Climate Action Plan, provides subject maWer expertise and coordinates across departments in building public good through activities that reduce greenhouse gas emissions, conserves scarce resources, prioritize public health and prepare for the impacts of climate change. In this capacity, the program teams with regional partners and adjacent jurisdictions, and seeks grant funding to develop collective approaches to implement the City's ambitious Climate Action Plan.
Service Objectives
Collect and analyze relevant data to demonstrate municipal compliance with current and increasing state and federal regulations.
Serve as a technical resource on sustainability initiatives by preparing staff reports, developing local policies and ordinances, coordinating educational events, and making presentations to Council, City departments, and applicable outside organizations.
Coordinate municipal and community-wide greenhouse gas emissions inventories, develop emissions targets, execute a community-wide climate action plan, and track progress to achieve emissions reductions over time.
Expand existing compliance-focused environmental services to offer innovative energy, water, and resource conservation programs that effectively engage employees and community members.
Evaluate existing departmental programs and benchmark environmental achievements on an ongoing basis.
Research tools and best practices for efficient utility management and conservation and adapt these to the City’s organizational culture, operations, and budgets.
Manage or perform resource audits, identify energy conservation and renewable energy generation opportunities, calculate feasibility and develop projects that are cost-effective and conserve resources.
Develop effective partnerships that empower students and community members as environmental leaders.
Proposed Budget
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Proposed Budget
It is recommended that City Council approve a budget of $763,464 for the Sustainability program. This represents a decrease of $102,956 (-11.9%) from the FY 2021-22 Adopted Budget.
The decrease is due to a large special project, the update to the Climate Action Plan, completing in FY 2021-22.
The decrease in Cost Allocation is due to decreased City AWorney costs and fewer Human Resources recruitments for Sustainability in FY 2020-21.
Special Projects
The following table shows the special projects for the fiscal year.
Special Project Appropriations Revenue Funding Source Description Climate Action Plan
Vision Summary
Document
$10,000 $10,000 General Fund
Graphic design and
editing support for a
public-facing, "userfriendly" vision and
executive summary
document for the
newly adopted
Climate Action Plan
Update
Total $10,000 $10,000
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Miscellaneous Revenue $ 14,494 $ 1,450 $ - $ -
Total Revenues $ 14,494 $ 1,450 $ - $ -
Expenditures
Employee Compensation $ 161,002 $ 221,141 $ 273,730 $ 291,223 Employee Benefits $ 80,086 $ 112,596 $ 131,482 $ 137,241 Materials $ 10,204 $ 7,581 $ 29,955 $ 34,755
Contract Services $ 60,747 $ 48,853 $ 94,379 $ 104,379
Cost Allocation $ 116,846 $ 208,182 $ 249,106 $ 182,388 Special Projects $ 20,174 $ 63,299 $ 84,400 $ 10,000
Contingencies $ - $ - $ 3,368 $ 3,478
Total Expenditures $ 449,059 $ 661,652 $ 866,420 $ 763,464 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 434,564 $ 660,201 $ 866,420 $ 763,464 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ENVIRONMENTAL PROGRAMS
ASSISTANT
0 0.35 0.35 0.35
MANAGEMENT ANALYST 0.70 0.70 0.70 0.70
SUSTAINABILITY MANAGER 0.70 0.75 0.75 0.75
Total 1.40 1.80 1.80 1.80
There are no changes to the current level of staffing.
FY 2022-23 Proposed Budget Administration 220
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Office of Communications
Budget Unit 100-12-126
General Fund - City Manager - Office of Communications
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 977,517
Fund Balance $ -
General Fund Costs $ 977,517
% Funded by General Fund 100.0%
Total Staffing 3.7 FTE
Program Overview
The Office of Communications is responsible for community outreach to ensure that residents have access to timely, useful, and important information. The Office of Communications oversees and maintains many of the City’s lines of communication with residents, including the City’s website, social media accounts, monthly newsleWer, videos, event tabling, flyers, and press releases. The Office of Communications also acts as a liaison between various City departments and the community when it comes to communicating information about projects and events.
Service Objectives
Serve as the communications link between the City of Cupertino and residents Ensure that the community has easy access to important, useful, and timely information through various forms of media including print, online, and video Build community pride and positive identification with the City among residents Increase interest and participation in City services, projects, and activities Promote City Council and departmental goals, initiatives, programs, and services Assist in creating better internal and external communication Enhance the City’s relationship with the news media
Proposed Budget
It is recommended that City Council approve a budget of $977,517 for the Office of Communications program.
This represents an increase of $268,562 (37.9%) from the FY 2021-22 Adopted Budget.
The increase in budget is primarily due to the addition of the community survey that was typically done every other year and the addition of a three-year Limited-Term Communications Analyst to support strategic outreach throughout the City. There is also additional funding for increased marketing and outreach.
Revenues and Expenditures
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 260,873 $ - $ - $ -
Total Revenues $ 260,873 $ - $ - $ -
Expenditures
Employee Compensation $ 266,759 $ 318,479 $ 347,178 $ 449,061 Employee Benefits $ 103,636 $ 135,743 $ 160,426 $ 212,471 Materials $ 97,245 $ 137,495 $ 154,755 $ 187,478
Contract Services $ 34,762 $ 18,827 $ 39,856 $ 120,800
Cost Allocation $ 28,441 $ - $ - $ -
Contingencies $ - $ - $ 6,740 $ 7,707
Total Expenditures $ 530,843 $ 610,544 $ 708,955 $ 977,517 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 269,970 $ 610,544 $ 708,955 $ 977,517 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
COMMUNICATIONS ANALYST 0 0 0 1.00
COMMUNITY OUTREACH
SPECIALIST
1.20 1.20 1.20 0.90
PUBLIC INFORMATION OFFICER 0.75 0.85 0.85 0.85
SR OFFICE ASSISTANT 0.70 0.90 0.90 0.90
Total 2.65 2.95 2.95 3.65
Staffing includes the addition of one three-year Limited-Term Communications Analyst to support strategic communications throughout the City.
FY 2022-23 Proposed Budget Administration 222
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Multimedia
Budget Unit 100-12-305
General Fund - City Manager - Multimedia
Budget at a Glance
2023 Proposed Budget
Total Revenues $ 354,821
Total Expenditures $ 438,792
Fund Balance $ -
General Fund Costs $ 73,971
% Funded by General Fund 16.9%
Total Staffing 1.5 FTE
Program Overview
In FY 2020-21, this program transferred from Innovation Technology to the City Manager’s Office. Historical data can be found under Budget Unit 100-31-305. The primary goal of the Multimedia Division is to increase public awareness, interest, understanding, and participation in the issues, programs, and services presented by the City of Cupertino. The staff promotes City services and programs through its 24/7 government access channel, radio station, digital signage network, City website, and numerous online video platforms. In addition, the video staff provides multimedia production services and technical support for all City departments.
Multimedia staff also oversees the design, maintenance, and engineering of the City’s broadcast and audiovisual systems.
Service Objectives
Multimedia staff works together to manage and maintain the following city services:
City Channel, the government access television channel which provides 24/7 information to Cupertino residents, includes full coverage of city meetings, community events, town hall forums, press conferences, election coverage, and local speaker series, as well as educational programming and state government affairs programming
Webcasting and video on demand services for live streaming city meetings, events, and other programs of interest
Radio Cupertino for emergency and community information for public service announcements, traffic alerts, and weather forecasts
Digital signage to promote city programs and events via electronic displays in city facilities Multimedia production services and maintenance of city video equipment Proposed Budget
It is recommended that City Council approve a budget of $438,792 for the Multimedia program. This represents a decrease of $477,555 (-52.1%) from the FY 2021-22 Adopted Budget.
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The decrease is due to transferring 1.5 positions and a portion of materials and contracts to the Video program in Innovation Technology.
Special Projects
The following table shows the special projects for the fiscal year.
Special Project Appropriation Revenue Funding Source Description Field Lighting
Package $10,000 $10,000 General Fund Lighting EquipmentUpgrade Total $10,000 $10,000
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Intergovernmental Revenue $ - $ 8,800 $ - $ -
Charges for Services $ - $ 293,110 $ 414,196 $ 354,821
Total Revenues $ - $ 301,910 $ 414,196 $ 354,821
Expenditures
Employee Compensation $ - $ 465,372 $ 500,123 $ 303,932 Employee Benefits $ - $ 196,887 $ 215,203 $ 101,391
Materials $ - $ 60,650 $ 60,521 $ 1,406
Contract Services $ - $ 74,066 $ 110,597 $ 21,491
Special Projects $ - $ 104,963 $ 25,000 $ 10,000
Contingencies $ - $ - $ 4,903 $ 572
Total Expenditures $ - $ 901,938 $ 916,347 $ 438,792
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ 600,027 $ 502,151 $ 73,971
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Administration 224
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Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
MULTIMEDIA COMMUNICATIONS
SPEC
0 3.00 3.00 1.50
Total 0 3.00 3.00 1.50
There are changes to the current level of staffing, as a portion of Multimedia/Video is transferring to Innovation Technology.
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Public Access Support
Budget Unit 100-12-307
General Fund - City Manager - Public Access Support
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 79,249
Fund Balance $ -
General Fund Costs $ 79,249
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
The City assists in the funding of the KMVT Community Access Television Program.
Service Objectives
Encourage Cupertino-based individuals and groups to use the community television production facilities for the purpose of expressing their interests, concerns, and ideas in a socially responsible manner.
Provide professional training in hands-on video production by providing access to television equipment, computers, and software that would be otherwise out of reach of the average person.
Provide workshops on all aspects of television production--including how to run a video camera, photography, editing, visual effects, social media, podcasting, and video blogging.
Assist individuals and community groups to develop and produce programs for broadcast on the community access channel.
Proposed Budget
It is recommended that City Council approve a budget of $79,249 for the Public Access Support program. This represents a decrease of $282 (-0.4%) from the FY 2021-22 Adopted Budget.
This budget is relatively unchanged from last fiscal year.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ - $ 70,961 $ 75,120 $ 75,120
Cost Allocation $ - $ 3,022 $ 2,533 $ 2,251
Contingencies $ - $ - $ 1,878 $ 1,878
Total Expenditures $ - $ 73,983 $ 79,531 $ 79,249
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ 73,983 $ 79,531 $ 79,249
Staffing
There is no staffing associated with this program.
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Community Outreach and Neighborhood Watch
Budget Unit 100-12-632
General Fund - City Manager - Community Outreach and Neighborhood Watch Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 213,823
Fund Balance $ -
General Fund Costs $ 213,823
% Funded by General Fund 100.0%
Total Staffing 1.0 FTE
Program Overview
Community Outreach programs facilitate communication and enhance cultural understanding in Cupertino neighborhoods. Block Leaders are instrumental in building connected communities, delivering timely and pertinent information to neighbors, and providing input to the City. Neighborhood Watch enhances public safety by providing crime prevention information to local businesses and residents. The program promotes an active relationship between the community and the Sheriff’s Office.
Service Objectives
Aid in the development, implementation, and coordination of City programs and community-building activities designed to bring Cupertino neighborhoods together.
Coordinate and disseminate useful and important information to Cupertino residents through regular meetings and communications that build relationships and strengthen neighborhoods.
Facilitate collaboration with Emergency Preparedness and Neighborhood Watch programs.
Train residents to connect and organize neighbors and neighborhoods.
Get Block Leaders involved in the Parks and Recreation System Master Plan.
Create and implement Neighborhood Watch meetings and groups.
Disseminate important City news and safety information.
Organize and conduct annual National Night Out initiative.
Proposed Budget
It is recommended that City Council approve a budget of $213,823 for the Community Outreach and Neighborhood Watch program. This represents an increase of $41,931 (24.4%) from the FY 2021-22 Adopted Budget.
The increase in compensation and benefits is due to the addition of 0.25 FTE. The Community Relations Coordinator increased from 0.75 FTE to 1 FTE in FY 2021-22.
Revenues and Expenditures
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 104,593 $ 83,627 $ 55,908 $ 92,579 Employee Benefits $ 37,535 $ 38,468 $ 34,044 $ 47,518
Materials $ 3,346 $ 5,971 $ 11,386 $ 14,818
Cost Allocation $ 43,100 $ 56,874 $ 68,769 $ 58,538
Special Projects $ - $ - $ 1,500 $ -
Contingencies $ - $ - $ 285 $ 370
Total Expenditures $ 188,574 $ 184,940 $ 171,892 $ 213,823 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 188,574 $ 184,940 $ 171,892 $ 213,823 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
COMMUNITY RELATIONS
COORD
0.75 0.75 0.75 1.00
Total 0.75 0.75 0.75 1.00
The Community Relations Coordinator increased from 0.75 FTE to 1 FTE in FY 2021-22.
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Office of Emergency Management
Budget Unit 100-12-633
General Fund - City Manager - Office of Emergency Management Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 706,493
Fund Balance $ -
General Fund Costs $ 706,493
% Funded by General Fund 100.0%
Total Staffing 2.0 FTE
Program Overview
The mission of the Office of Emergency Management is to lead and direct the City in prevention, preparation, mitigation, response, and recovery from all emergencies, hazards, incidents, and events.
Service Objectives
Develop and implement the goals and objectives of Cupertino's Office of Emergency Management.
Maintain the City’s Emergency Operations Center (EOC) in a perpetual state of operational readiness.
Support Citizen Corps including the Block Leader Program, Neighborhood Watch, Community Emergency Response Team (CERT), Cupertino Amateur Radio Emergency Service (CARES), and Medical Reserve Corps (MRC).
Prepare, test, and revise emergency response and recovery policies, plans, and procedures in compliance with the California Emergency Services Act, the Standardized Emergency Management System (SEMS), and the National Incident Management System (NIMS).
Coordinate training of City staff in personal preparedness, SEMS/NIMS, and EOC functions.
Maintain effective liaison with local, state, and national emergency management organizations and/or allied disaster preparedness and response agencies.
Proposed Budget
It is recommended that City Council approve a budget of $706,493 for the Office of Emergency Management program. This represents an increase of $11,759 (1.7%) from the FY 2021-22 Adopted Budget.
This budget is relatively unchanged from the FY 2021-22 budget. The increase in Contract Services is due to additional EOC training and the continuation of the personal preparedness program, which was a special project in FY 2021-22.
Revenues and Expenditures
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 126,289 $ 171,115 $ 305,225 $ 302,775 Employee Benefits $ 37,900 $ 72,593 $ 139,281 $ 148,923 Materials $ 27,158 $ 11,595 $ 42,799 $ 61,108
Contract Services $ 320 $ - $ 7,139 $ 14,200
Cost Allocation $ 106,193 $ 128,820 $ 188,792 $ 177,604 Special Projects $ - $ 61,650 $ 10,000 $ -
Contingencies $ - $ - $ 1,498 $ 1,883
Total Expenditures $ 297,860 $ 445,773 $ 694,734 $ 706,493 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 297,860 $ 445,773 $ 694,734 $ 706,493 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
EMERGENCY SERVICES
COORDINATOR
1.00 0.95 0.95 0.95
MANAGEMENT ANALYST 0 0 1.00 1.00
Total 1.00 0.95 1.95 1.95
There are no changes to the current level of staffing.
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Economic Development
Budget Unit 100-12-705
General Fund - City Manager - Economic Development
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 633,893
Fund Balance $ -
General Fund Costs $ 633,893
% Funded by General Fund 100.0%
Total Staffing 1.0 FTE
Program Overview
In FY 2021-22, this program was transferred to the City Manager's Office. Historical data can be found in Budget Unit 100-71-705 in Community Development. The Economic Development program specifically targets business retention, expansion, and aWraction with a focus on small business development, in order to support the City's financial stability.
Service Objectives
Provide assistance and support to businesses to enable job creation, new business formation, private investment, and industry evolution.
Conduct outreach to existing small businesses to create strong working relationships.
Collaborate with internal city team members to keep the needs of businesses in the forefront when reviewing applications and projects.
Partner with local business associations, agencies, and organizations to create a strong and cohesive network offering business support and assistance.
Provide the public with current data and information easily accessible online or in printed format. Assist with policy formation to align with business and community goals.
Proposed Budget
It is recommended that City Council approve a budget of $633,893 for the Economic Development program.
The increase in compensation and benefits is due to the transfer of the Economic Development Manager from the Community Development to Administration. The Economic Development Manager, which was previously a part-time position, also became a full-time position in FY 2021-22. Special projects are requested for a Fuse Corps Fellow and Economic Development Strategy Outreach.
Special Projects
The following table shows the special projects for the fiscal year.
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Special Project Appropriation Revenue Funding Source Description Economic
Development Fuse
Fellow
$180,000 $180,000 General Fund
Hire Fuse Corps Fellow to assist with the
implementation of the updated economic
development strategy
Economic
Development
Strategy Outreach
$20,000 $20,000 General Fund
Support outreach and engagement with
stakeholders to share the draft strategy
and secure feedback to develop and
design key messages around
recommendations
Total $200,000 $200,000
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 40,726 $ - $ - $ 180,045
Employee Benefits $ 14,011 $ 1,221 $ - $ 76,832
Materials $ 42,055 $ 33,890 $ - $ 69,629
Contract Services $ 213,350 $ 149,994 $ - $ 62,308
Cost Allocation $ 32,159 $ 50,406 $ - $ 41,781
Special Projects $ 11,667 $ - $ - $ 200,000
Contingencies $ - $ - $ - $ 3,298
Total Expenditures $ 353,968 $ 235,511 $ - $ 633,893
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 353,968 $ 235,511 $ - $ 633,893
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ECONOMIC DEVELOPMENT
MANAGER
1.00 0 0 1.00
Total 1.00 0 0 1.00
In FY 2021-22, the Economic Development Manager position was transferred from the Community Development Department to the Administration Department.
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City Clerk
Budget Unit 100-13-130
General Fund - City Clerk - City Clerk
Budget at a Glance
2023 Proposed Budget
Total Revenues $ 121,651
Total Expenditures $ 719,419
Fund Balance $ -
General Fund Costs $ 597,768
% Funded by General Fund 83.1%
Total Staffing 3.5 FTE
Program Overview
The City Clerk’s office responsibilities include administrative duties associated with the City Council’s agenda and actions; publishing legal notices; posting notice of all commission vacancies; processing codification of City’s Municipal Code; records management; compliance with Public Records Act requests; manages official elections; and provides partial mail service for all City Departments.
Service Objectives
Ensure compliance with the Brown Act open meetings requirements, Maddy Act Commission vacancy requirements and the Public Records Act, to accurately process documents and maintain a records management system that facilitates timely access to information, including digital access to City records.
Provide complete, accurate and timely information to the public, staff and City Council.
Respond to internal routing requests within two working days; respond to internal requests requiring archival research within five working days.
Respond to Public Record Act requests within the time specified by State law.
Provide a digital City Council packet to members of the City Council and staff for use on mobile devices.
Process and sort routine incoming and outgoing mail and packages daily for each department.
Proposed Budget
It is recommended that City Council approve a budget of $719,419 for the City Clerk program. This represents an increase of $116,086 (19.2%) from the FY 2021-22 Adopted Budget.
The increase in compensation and benefits is due to a request to add an Administrative Assistant. The Administrative Assistant will provide a variety of support to the City Clerk’s Division, including preparing meeting agendas, processing Public Records Act requests, campaign finance forms, ethics certificates, lobbyist registration applications, and general records management. The staff time needed for these functions has increased over the past years.
Revenues and Expenditures
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 65,544 $ 91,584 $ 144,551 $ 121,651 Total Revenues $ 65,544 $ 91,584 $ 144,551 $ 121,651
Expenditures
Employee Compensation $ 294,834 $ 351,929 $ 384,695 $ 434,265 Employee Benefits $ 107,721 $ 139,725 $ 143,987 $ 198,878 Materials $ 37,326 $ 35,000 $ 35,382 $ 46,172
Contract Services $ 44,336 $ 27,822 $ 37,448 $ 38,000
Cost Allocation $ 34,341 $ - $ - $ -
Contingencies $ - $ - $ 1,821 $ 2,104
Total Expenditures $ 518,558 $ 554,476 $ 603,333 $ 719,419 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 453,015 $ 462,893 $ 458,782 $ 597,768 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0 0 0 1.00
CITY CLERK 1.00 1.00 1.00 1.00
DEPUTY CITY CLERK 1.00 1.00 1.00 1.00
EXEC ASST TO THE CITY
COUNCIL
0.50 0 0 0
SR OFFICE ASSISTANT 0.50 0.50 0.50 0.50
Total 3.00 2.50 2.50 3.50
Staffing is increasing due to the addition of an Administrative Assistant. The Administrative Assistant will provide a variety of support to the City Clerk’s Division, including preparing meeting agendas, processing Public Records Act requests, campaign finance forms, ethics certificates, lobbyist registration applications, and general records management. The staff time needed for these functions has increased over the past years.
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Duplicating and Mail Services
Budget Unit 100-13-132
General Fund - City Clerk - Duplicating and Mail Services Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 49,075
Fund Balance $ -
General Fund Costs $ 49,075
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
The Duplicating and Mail budget provides paper, envelope, and postage supplies Citywide, and is responsible for the maintenance costs of the postage and folder-inserter machines.
Service Objectives
Supply paper, envelopes, and postage Citywide and maintain postage and folder-inserter machines.
Proposed Budget
It is recommended that City Council approve a budget of $49,075 for the Duplicating and Mail Services program. This represents an increase of $1,281 (2.7%) from the FY 2021-22 Adopted Budget.
This budget is relatively unchanged from last fiscal year. The costs for paper, envelopes, and postage increased by CPI.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Benefits $ 216 $ - $ - $ -
Materials $ 30,750 $ 18,551 $ 36,410 $ 37,794
Contract Services $ 6,065 $ 5,271 $ 5,959 $ 6,500
Cost Allocation $ - $ 32,813 $ 4,366 $ 3,674
Contingencies $ - $ - $ 1,059 $ 1,107
Total Expenditures $ 37,031 $ 56,635 $ 47,794 $ 49,075
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 37,032 $ 56,635 $ 47,794 $ 49,075
Staffing
There is no staffing associated with this program.
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Elections
Budget Unit 100-13-133
General Fund - City Clerk - Elections
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 140,839
Fund Balance $ -
General Fund Costs $ 140,839
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
The City Clerk’s office administers the legislative process including management of local elections and filings of Fair Political Practices Commission documents.
Service Objectives
Administer elections and Fair Political Practices Commission filings in compliance with State law.
Conduct a local election in even-numbered years and ballot measure elections as necessary, in compliance with the California Elections Code.
Facilitate timely filing of required and voluntary documentation from candidates and election commiWees, including Nomination Papers, Candidate Statements of Qualification, Campaign Financial Disclosure Statements, and Statements of Economic Interest, as well as candidate biographies and photographs.
Make election-related information available to the public and news media in a timely manner.
Proposed Budget
It is recommended that City Council approve a budget of $140,839 for the Elections program. This represents an increase of $140,692 (95708.8%) from the FY 2021-22 Adopted Budget.
The increase is due to increased costs for the Santa Clara County Election in November 2022, which occurs every 2 years. Materials costs are for election services and materials, including legal notices. Contract services costs are for consolidation with the County Registrar of Voters. The increase in Cost Allocation is due to increased activities in FY 2020-21 as it was an election year.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Miscellaneous Revenue $ - $ 14,300 $ - $ -
Total Revenues $ - $ 14,300 $ - $ -
Expenditures
Materials $ 58 $ 600 $ - $ 4,845
Contract Services $ - $ 113,261 $ - $ 130,000
Cost Allocation $ - $ 1,595 $ 147 $ 2,623
Contingencies $ - $ - $ - $ 3,371
Total Expenditures $ 58 $ 115,456 $ 147 $ 140,839
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 58 $ 101,156 $ 147 $ 140,839
Staffing
There is no staffing associated with this program.
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City Manager Contingency
Budget Unit 100-14-123
General Fund - City Manager Discretionary - City Manager Contingency Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 75,000
Fund Balance $ -
General Fund Costs $ 75,000
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
The City Manager Contingency program was established to meet citywide unexpected expenses that may occur during the year. In FY 2013-14, a Contingencies expenditure category was added to each program to serve as a contingency for any unexpected expenditures that might occur during the year. In FY 2020-21, program contingencies were reduced from 5% of budgeted materials and contract services to 2.5%. The City Manager Contingency is a second level of contingency established for unexpected expenditures that may occur over the program contingency. In FY 2020-21, City Manager contingencies were also reduced from 5% of budgeted General Fund materials and contract services to 2.5%. In FY 2021-22, City Manager contingencies were further reduced to $75,000, bringing total contingencies for the General Fund to approximately 2.5% of budgeted materials and contract services. This percentage is below best practices adopted by the Governmental Accounting Standards Board (GASB) of 5-15% contingency. Program contingency budgets may be used to cover unanticipated program expenses at the department’s discretion, while the use of the City Manager Contingency will require City Manager approval. Staff reports any use of the City Manager Contingency to City Council as part of the quarterly financial report.
Proposed Budget
It is recommended that City Council approve a budget of $75,000 for the City Manager Contingency program.
This budget is unchanged from the prior year.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Materials $ 743 $ - $ - $ -
Contingencies $ - $ - $ 75,000 $ 75,000
Total Expenditures $ 743 $ - $ 75,000 $ 75,000
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 743 $ - $ 75,000 $ 75,000
Staffing
There is no staffing associated with this program.
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City Attorney
Budget Unit 100-15-141
General Fund - City Attorney - City Attorney
Budget at a Glance
2023 Proposed Budget
Total Revenues $ 362,253
Total Expenditures $ 1,574,133
Fund Balance $ -
General Fund Costs $ 1,211,880
% Funded by General Fund 77.0%
Total Staffing 3.0 FTE
Program Overview
The City AWorney is appointed by the City Council to manage the legal affairs of the City, including the operation of the City AWorney’s Office. The City AWorney’s Office provides all legal services that are needed to support the City Council, City Commissions and CommiWees, City Manager, department directors, and City staff.
Service Objectives
The mission of the City AWorney’s Office is to protect and defend the City by all legal and ethical means and to provide the municipal corporation with high-quality legal service and advice. These legal services include the following:
Prosecute and defend the City in any legal action such as civil maWers involving personal injury or property damage, code enforcement, or any administrative action arising out of City business.
Manage all liability claims filed against the City including investigation and disposition.
Attend City Council, Planning Commission, and other public meetings as requested.
Prepare and review proposed legislation including ordinances and resolutions.
Draft and/or review contracts, agreements, and other legal documents.
Conduct legal research and analysis, and prepare legal memoranda.
Provide legal support for special projects.
Proposed Budget
It is recommended that City Council approve a budget of $1,574,133 for the City AWorney program. This represents a decrease of $369,522 (-19.0%) from the FY 2021-22 Adopted Budget.
The decrease is due to the change from an outsourced City AWorney’s Office to two in-house aWorneys. The decrease in Cost Allocation Plan revenues is because of a decrease in City AWorney expenses in FY 2021-22. The Cost Allocation Plan provides revenue for the City AWorney’s Office from other programs that use City Attorney services.
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 409,873 $ 562,171 $ 542,945 $ 362,253 Miscellaneous Revenue $ - $ 3,884 $ - $ -
Total Revenues $ 409,873 $ 566,055 $ 542,945 $ 362,253
Expenditures
Employee Compensation $ 105,757 $ 109,116 $ 113,073 $ 610,595 Employee Benefits $ 48,857 $ 53,716 $ 60,993 $ 264,139
Materials $ 10,966 $ 1,843 $ 4,589 $ 23,920
Contract Services $ 2,251,589 $ 1,327,256 $ 1,765,000 $ 658,420 Cost Allocation $ 68,244 $ - $ - $ -
Contingencies $ - $ - $ - $ 17,059
Total Expenditures $ 2,485,413 $ 1,491,931 $ 1,943,655 $ 1,574,133 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 2,075,540 $ 925,876 $ 1,400,710 $ 1,211,880 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
CITY ATTORNEY 0 0 0 1.00
LEGAL SERVICES MANAGER 1.00 1.00 1.00 1.00
SENIOR ASSISTANT CITY
ATTORNEY
0 0 0 1.00
Total 1.00 1.00 1.00 3.00
In FY 2021-22, the City transitioned from an outsourced City Attorney's Office to an in-house City Attorney and Senior Assistant City Attorney.
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Law Enforcement
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Department Overview
Budget Units
Budget Unit Program 2023 Proposed Budget
Law Enforcement $ 16,814,519
100-20-200 Law Enforcement $ 16,765,096
100-20-201 Interoperability Project $ 49,423
Total $ 16,814,519
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Budget at a Glance
2023 Proposed Budget
Total Revenues $ 1,367,721
Total Expenditures $ 16,814,519
Fund Balance $ -
General Fund Costs $ 15,446,798
% Funded by General Fund 91.9%
Total Staffing FTE
Organization
Captain Rich Urena, Office of the Sheriff
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Performance Measures
Goal: Maintain a safe environment to live, work, learn and play.
Benefit: All members of the community are safe, informed, empowered and supported.
Performance Measure
FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Ongoing
Target
Response time for emergency calls
Priority 1 3.51 3.4 4.31 5 minutes
Priority 2 6.37 6.07 6.52 9 minutes
Priority 3 11.96 11.8 11.28 20 minutes
% programs maintaining minimum
attendance
Teen Academy 83% 92% 90% 80%
Citizen Academy 65% N/A N/A 80%
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Workload Indicators
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Total Priority 1 Calls 57 31 30
Total Priority 2 Calls 3,917 3,107 1,877
Total Priority 3 Calls 4,909 4,254 2,014
Total Teen/Community Academy Participants 76 23 18
Proposed Budget
It is recommended that City Council approve a budget of $16,814,519 for the Law Enforcement department.
This represents an increase of $1,058,169 (6.7%) from the FY 2021-22 Adopted Budget.
The increase is due to the annual increase in costs for the Santa Clara County Sheriff’s Office.
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Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
100.0%
Law Enforcement
$14.2M
$14.8M
$15.8M
$16.8M
2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget FY 2022-23 Proposed Budget Law Enforcement 251
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Intergovernmental Revenue $ 155,948 $ 156,727 $ - $ 156,000 Charges for Services $ 753,798 $ 410,824 $ - $ 61,000
Fines and Forfeitures $ 200,105 $ 102,396 $ - $ 202,000 Miscellaneous Revenue $ 796,826 $ 837,329 $ 887,259 $ 948,721 Total Revenues $ 1,906,677 $ 1,507,276 $ 887,259 $ 1,367,721 Expenditures
Materials $ 43,729 $ 158 $ 53,891 $ 53,891
Contract Services $ 14,049,296 $ 14,652,520 $ 15,534,026 $ 16,606,737 Cost Allocation $ 58,388 $ 123,731 $ 168,433 $ 153,891
Total Expenditures $ 14,151,413 $ 14,776,409 $ 15,756,350 $ 16,814,519 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 12,244,735 $ 13,269,134 $ 14,869,091 $ 15,446,798 Staffing
There is no staffing associated with this department.
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Law Enforcement
Budget Unit 100-20-200
General Fund - Law Enforcement - Law Enforcement
Budget at a Glance
2023 Proposed Budget
Total Revenues $ 1,367,721
Total Expenditures $ 16,765,096
Fund Balance $ -
General Fund Costs $ 15,397,375
% Funded by General Fund 91.8%
Total Staffing FTE
Program Overview
The Law Enforcement program provides law enforcement, emergency communications, School Resource Officers, and the Youth Probation Program. Law enforcement services are provided by the Santa Clara County Sheriff’s Office, while communications services are provided by the Santa Clara County General Services Administration. The County’s Youth Probation Program, also managed by the Sheriff’s Office, is funded through a partnership with the Cupertino Union School District and the City of Cupertino. Other services include general law enforcement (patrol), traffic enforcement and investigation, detective services, and additional resources from specialized units.
The State allocates the Citizens Option for Public Safety (COPS) grant to cities and counties for front-line law enforcement purposes. Funding is allocated proportionately based on population size with a minimum allocation of $100,000 per jurisdiction. This grant will be used to partially offset the cost of a second School Resource Officer that was added in the FY 2016-17 school year.
Service Objectives
Protect life and property through innovative and progressive policing methods.
Respond to Priority 1 emergency situations within an average of fewer than five minutes.
Enforce the vehicle code with the goal of increasing traffic safety.
Divert first time/minor youth offenders from the juvenile justice system.
Provide daily on-site interaction with our youth.
Proposed Budget
It is recommended that City Council approve a budget of $16,765,096 for the Law Enforcement program. This represents an increase of $1,058,124 (6.7%) from the FY 2021-22 Adopted Budget.
The increase is due to the annual increase in costs for the Santa Clara County Sheriff’s Office. The City's contract with the Santa Clara County Sheriff's Office is effective from July 1, 2014, to July 1, 2024. Per the contract, the annual allowable increase is the lesser of:
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Change in total compensation plus 2% plus the CalPERS increase CPI plus 2% plus the CalPERS increase
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Intergovernmental Revenue $ 155,948 $ 156,727 $ - $ 156,000 Charges for Services $ 753,798 $ 410,824 $ - $ 61,000
Fines and Forfeitures $ 200,105 $ 102,396 $ - $ 202,000 Miscellaneous Revenue $ 796,826 $ 837,329 $ 887,259 $ 948,721 Total Revenues $ 1,906,677 $ 1,507,276 $ 887,259 $ 1,367,721 Expenditures
Materials $ 43,729 $ 158 $ 53,891 $ 53,891
Contract Services $ 14,049,296 $ 14,652,520 $ 15,485,487 $ 16,558,198 Cost Allocation $ 57,618 $ 123,003 $ 167,594 $ 153,007
Total Expenditures $ 14,150,643 $ 14,775,681 $ 15,706,972 $ 16,765,096 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 12,243,965 $ 13,268,406 $ 14,819,713 $ 15,397,375 Staffing
There is no staffing associated with this program.
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Interoperability Project
Budget Unit 100-20-201
General Fund - Law Enforcement - Interoperability Project Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 49,423
Fund Balance $ -
General Fund Costs $ 49,423
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
The Silicon Valley Regional Interoperability Authority (SVRIA) was formed under the Joint Exercise of Powers Act (JPA) to provide interoperable communications solutions to its members. The SVRIA represents the interests of all public safety agencies in Santa Clara County through its members. It services the Santa Clara Operational Area which includes the County of Santa Clara, its fifteen cities and towns, and all special districts.
Service Objectives
SVRIA exists to identify, coordinate, and implement communications interoperability solutions to its member agencies. The purpose of these projects is to seamlessly integrate voice and data communications between law enforcement, the fire and rescue service, emergency medical services, and emergency management for routine operations, critical incidents, and disaster response and recovery.
Proposed Budget
It is recommended that City Council approve a budget of $49,423 for the Interoperability Project program. This represents an increase of $45 (0.1%) from the FY 2021-22 Adopted Budget.
This budget is relatively unchanged from last fiscal year.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ - $ - $ 48,539 $ 48,539
Cost Allocation $ 770 $ 728 $ 839 $ 884
Total Expenditures $ 770 $ 728 $ 49,378 $ 49,423
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 770 $ 728 $ 49,378 $ 49,423
Staffing
There is no staffing associated with this program.
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Innovation and Technology
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Department Overview
Budget Units
Budget Unit Program 2023 Proposed Budget
I&T Administration $ 259,434
610-30-300 Innovation & Technology Administration $ 259,434 Video $ 574,604
100-31-305 Video $ 574,604
100-31-307 Public Access Support $ -
Applications $ 2,815,258
100-32-308 Applications $ 2,815,258
Infrastructure $ 2,721,957
610-34-310 Infrastructure $ 2,721,957
GIS $ 1,546,226
610-35-986 GIS $ 1,546,226
Total $ 7,917,479
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Budget at a Glance
2023 Proposed Budget
Total Revenues $ 3,916,540
Total Expenditures $ 7,917,479
Fund Balance $ 412,601
General Fund Costs $ 4,423,540
% Funded by General Fund 55.9%
Total Staffing 13.4 FTE
Organization
Bill Mitchell, Chief Technology Officer
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Performance Measures
Goal: Provide superior delivery of information and technology services to city employees and constituents while continually enhancing levels of engagement.
Benefit: Integrated information services enable customer access to the tools and information they need, when and where they need it.
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Performance Measure
FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Ongoing
Target
GIS: % of time spent Developing Application 10% 25% 25% 35% GIS: % of time Maintaining applications 90% 75% 70% 65% GIS: Met Requests within SLA (map, data,
Web maps, Cityworks, schema, other)
completed
97% 98% 100% 100%
GIS: Increase Property Information
(Internal/External) site visits per month 665/2,671 691/533 838/575 900/600 GIS: Cityworks utilization - # of assets
Cupertino maintains vs # of assets
maintained in Cityworks. Also the % increase
of work units completed (WOs, INSP,SRs)
45/31
70%
45/31
20%
45/35
50%
45/45
20%
Infrastructure: Percentage based upon
number of scheduled projects/Number of
projects completed on time
80% 86% 71% 100%
Infrastructure: Percentage based upon
number of HelpDesk tickets/SLA
measurements
93% 94% 93% 90%
Infrastructure: % Customer satisfaction based
upon Satisfaction Rate from helpdesk tickets 99.10% 98.70% 100.00% 85% Infrastructure: % of network uptime (not
including planned maintenance) 99.90% 99.90% 100.00% 99% Applications: % of citywide-enterprise
application project management performed
on time and on budget
96% 95% 95% 95%
Applications: Number of website site
visits/Number of site hits 1,624,377 800,164 823,496 5% annualincrease Applications: Number of support request for
the applications support per month 45 65 55 20
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Multimedia Division
Performance Measure FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Ongoing
Target
Percentage of total video productions
performed vs scheduled productions (city
meetings excluded)₁
145%
32/22
522%
47/9
326%
29/8 100%
Percentage of total engineering projects vs
scheduled projects₂
233%
7/3
250%
15/6
300%
6/2 100%
Total video views on YouTube and Granicus
platforms combined*₃ 215,607 246,313 83,417 5% annualincrease * Percentage skewed due to pandemic - more overall views due to daily press conference postings ₁The Multimedia Division is responsible for producing videos for both city staff as well as the general Cupertino public. Typically, dozens of video productions are completed every year. Video productions range in scope from relatively simple 30-second public service announcements to major projects like CREST that require more than two months of on-going field production, post-production editing, and a live awards program telecast. This specific Workload Indicator clearly indicates that a large percentage of annual video projects are unscheduled or unanticipated. The main reason is that video productions are oNentimes evaluated and prioritized on the basis of their immediate organizational value, impact and/or newsworthiness.
Oftentimes, these unanticipated projects are identified and assigned with only a few days or weeks of advanced notice. As such, there is an on-going need within the division for workflow and work schedule adaptability when it comes to evaluating video productions and completing them on time and on budget. The measurements here are tracked in the "milestones" document located in our City Channel documentation folder. The milestones document is a comprehensive dataset of all the video division projects--both large and small--and is maintained by the entire Multimedia Division staff. City meeting telecasts are not included in this particular dataset.
₂Multimedia staff is responsible for designing, managing, and maintaining the many audiovisual and broadcast systems located within the organization. These include systems within the conference and multipurpose rooms, office and huddle spaces, as well as the complex broadcast systems within the video control room at Community Hall. Engineering projects differ from simple repairs, tasks, and modifications in that projects, as defined, require a phased-in approach with advanced planning, design, budgeting, resource acquisition, and implementation. Most engineering projects are scheduled well in advance; occasionally, however, Multimedia Division staff may need to implement unanticipated projects if staff or council priorities require as such. The Workload Indicator here measures the number of projects completed vs. the number of scheduled projects.
These measurements are tracked in the "engineering milestones" document located in our City Channel documentation folder. This document is maintained by Pete Coglianese, who is the broadcast engineer for the division.
₃Multimedia staff historically tracks viewership data within our primary online video platforms--YouTube and Granicus. We continue to see an upward trend in viewership of our videos which are used to promote city meetings, city programs, and city services. Our target is to increase viewership by 5% annually. Both YouTube and Granicus provide advanced reporting modules that allow us to accurately track the number of views over a given date range. The numbers here indicate total views rather than total unique views. Other online platforms were considered as part of this dataset; however, because we do not consistently post videos to our FY 2022-23 Proposed Budget Innovation and Technology 263 623
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other social media sites such as Facebook, TwiWer, Instagram, and Nextdoor, those statistics were not included as part of this specific performance measure. Similarly, we do have accurate viewership data for the City Channel, our government access television channel, so that platform was excluded as well.
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Workload Indicators
Applications Division
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Enterprise Programs Support & Maintenance₁ 2,500 hours 1,900 hours 2,000 hours Application Development₂ 1,500 hours 800 hours 750 hours Percentage of Project Management Performed
on Time and Budget for Citywide
Applications₃
95% 95% 95%
₁The Application division is responsible for supporting enterprise business platforms like ERP, Land Management System, Recreation System, City Digital Records, City Website and many programs like Admin Services digital transformation, citywide permiWing, licensing and enforcement solutions. All these programs and services require constant enhancements, support and maintenance. The related tasks may range from providing staff user access to these platforms to issues that may require intensive programming and configurations to resolve. Troubleshooting existing or building new application configuration rules and parameters based on the current business process or new requirements. Creating custom application workflows in back office enterprise platforms like Accela, and New World to configuring business processes and integrating these enterprise soNware systems. Some issues require working and coordinating with soNware vendors to identify and resolve business workflows and other operational related problems.
Application integrations is a big solution in providing end to end business solutions. Coordinating the scheduling of corrective patches and upgrades between vendors and staff. ₂Applications division creates custom soNware solutions like Bid Management solution and Permit Parking soNware solutions. Application development for these kind of soNware solution goes through all stages of SoNware Development Life Cycle (SDLC) of Requirement-gathering, Analysis, Designing, Coding, Testing and Deployment of these custom soNware solutions. The Application team works with various city department and other key stakeholders during phases of SDLC. Application staff gather business requirements, participate in a variety of system user and work groups to identify user needs and operational, programmatic, and or regulatory changes affecting application requirements and other related issues. Perform soNware application coding, building system integration and interfaces between applications. Perform end user application tests for functionality and usability. Writing test scripts based on business processes. Perform system tests, integration test and performance (volume) tests. ₃This measure involves the task of project research and communications, project charter creation, creating or reviewing statement of work, contractor research and selection process, activity and resource planning, creation of work breakdown structure, team building, time management, deliverable management, customer satisfaction, risk management, communication management, project closeout process and documentation.
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Infrastructure Division
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Percentage of helpdesk requests completed 48
hours or less₁ 92% 94% 93%
% of network uptime₂ 99.9% 99.9% 99.8%
Number of IT Projects Completed₃ 100%
3/3
100%
7/7
100%
3/3
₁Infrastructure is responsible for the acquisition, maintenance and support of all computer hardware necessary for the City's leading edge network (server, storage, switch, security, appliance) and end user (PC, tablet, VoIP Devices, Smartphones) services. Exemplary customer service coupled with highly skilled staff is the trademark of this team.
₂Ensuring the City's vast network environment meets Business Continuity and Disaster Recovery requirements is a major responsibility of Infrastructure. Two geographically diverse data centers connected with a high speed Ethernet connection that traverses over 1000 miles provides this much needed service. 24x7 monitoring is done via a plethora of tools and contract services managed by Infrastructure. ₃PC based applications such as MicrosoN Office, Team Collaboration, Adobe, SoNphone, Antivirus, Teleconferencing and many more are procured, configured, maintained and supported. Citywide education of these products as well as end user security is the responsibility of Infrastructure which ensures a skilled City staff that know how to utilize software efficiently and securely.
GIS Division
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Hours Spent Web Application Development₁
460/tracking is still
being refined. This
is not an accurate
account.
540/tracking is still
being refined. This
is not an accurate
account.
450/ tracking is still
being refined. This
is not an accurate
account
Map, Data, Analysis, Report, Application
Configuration Requests, Workflow
Enhancements Completed Requests₂
422/tracking is still
being refined. This
is not an accurate
account.
882/tracking is still
being refined. This
is not an accurate
account.
691/tracking is still
being refined. This
is not an accurate
account.
Number of I&T workplan projects completed₃ 100%
11/11
100%
8/8 After budget
reduction
20%
4/20
₁The GIS Division builds web applications for staff to use as a tool in their daily workflows. The web application Property Info is a great example of this. Staff use it to review properties for development - select a property see all the associated layers of data, and access any related laserfiche documents. Property info is the FY 2022-23 Proposed Budget Innovation and Technology 266 626
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main web mapping application staff use so we are constantly making improvements based on requests or new advancements in web development, or available widgets. We also create a number of web applications for the public hWps://www.cupertino.org/online-services/open-government-data/city-maps/web-maps-andapplications everything from the service finder that give residents a one stop shop of all City services to the CIP story map that give the public a visually appealing way to quickly interpret what capitol improvement projects are scheduled this year, where the project is located, what the project entails, and current status. ₂GIS receives requests from staff and sometimes Commissioners, Sheriffs office, City Council members…These requests range from hard copy maps (ex. Update a zoning designation and print all new zoning maps) to interactive web maps (ex. PW had a consultant evaluate a section of Regnart Rd and Chad asked us to create a web map with the data point locations and associate photos), data request (ex. how many Trees were trimmed this year), Data changes (ex. can I see this layer symbolized by status and added to property info application), crystal report requests (ex. fleet wants a report that shows how many times each vehicle has a repair work order based on a dynamic timeframe), to application modifications (ex. the Tree Division is tasked with mediating a tree virus issue and they would like a new work order type so they can track the problem over time or Planning had us create a layer for private trees and then add it to the Property info application.) Evaluating staff use of an application and implementing ways to streamline that workflow. Reduce the number of steps to performing a task by configuring/coding an application in a way that eliminates redundancies. We are also asked to configure GIS for enterprise applications such as Accela and ActiveNet. ₃Project research and communications, project charter creation, SOW creation, contractor research and selection process, activity & resource planning/work breakdown structure, team building and motivation, time management, deliverable management, ensuring customer satisfaction, risk management, communication management, project closeout process, documentation
Multimedia Division
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Percentage of total video productions
performed vs scheduled productions (city
meetings excluded)₁
145%
32/22
522%
47/9
362%
29/8
Percentage of total engineering projects vs
scheduled projects₂
233%
7/3
250%
15/6
300%
6/2
Total video views on YouTube and Granicus
platforms combined*₃ 215,607 246,313 83,417
* Percentage skewed due to pandemic - more overall views due to daily press conference postings ₁The Multimedia Division is responsible for producing videos for both city staff as well as the general Cupertino public. Typically, dozens of video productions are completed every year. Video productions range in scope from relatively simple 30-second public service announcements to major projects like CREST that require more than two months of on-going field production, post-production editing, and a live awards program telecast. This specific Workload Indicator clearly indicates that a large percentage of annual video projects are unscheduled or unanticipated. The main reason is that video productions are oNentimes evaluated and prioritized on the basis of their immediate organizational value, impact and/or newsworthiness.
Oftentimes, these unanticipated projects are identified and assigned with only a few days or weeks of advanced FY 2022-23 Proposed Budget Innovation and Technology 267 627
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notice. As such, there is an on-going need within the division for workflow and work schedule adaptability when it comes to evaluating video productions and completing them on time and on budget. The measurements here are tracked in the "milestones" document located in our City Channel documentation folder. The milestones document is a comprehensive dataset of all the video division projects--both large and small--and is maintained by the entire video staff. City meeting telecasts are not included in this particular dataset.
₂Multimedia staff is responsible for designing, managing, and maintaining the many audiovisual and broadcast systems located within the organization. These include systems within the conference and multipurpose rooms, office and huddle spaces, as well as the complex broadcast systems within the video control room at Community Hall. Engineering projects differ from simple repairs, tasks, and modifications in that projects, as defined, require a phased-in approach with advanced planning, design, budgeting, resource acquisition, and implementation. Most engineering projects are scheduled well in advance; occasionally, however, video staff may need to implement unanticipated projects if staff or council priorities require as such. The Workload Indicator here measures the number of projects completed vs. the number of scheduled projects. These measurements are tracked in the "engineering milestones" document located in our City Channel documentation folder. This document is maintained by Pete Coglianese, who is the broadcast engineer for the division.
₃Multimedia staff historically tracks viewership data within our primary online video platforms--YouTube and Granicus. We continue to see an upward trend in viewership of our videos which are used to promote city meetings, city programs, and city services. Our target is to increase viewership by 5% annually. Both YouTube and Granicus provide advanced reporting modules that allow us to accurately track the number of views over a given date range. The numbers here indicate total views rather than total unique views. Other online platforms were considered as part of this dataset; however, because we do not consistently post videos to our other social media sites such as Facebook, TwiWer, Instagram, and Nextdoor, those statistics were not included as part of this specific performance measure. Similarly, we do have accurate viewership data for the City Channel, our government access television channel, so that platform was excluded as well.
Proposed Budget
It is recommended that City Council approve a budget of $7,917,479 for the Innovation and Technology department. This represents an increase of $1,651,209 (26.4%) from the FY 2021-22 Adopted Budget.
Increase in Compensation and Benefits are due to a transfer of 1.5 positions from the City Manager's Office.
Increases in Materials, Contract Services and Special Projects are due to multi-year and new infrastructure and application enhancements.
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Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
35.6%
34.4%
19.5%
7.3%
Applications
Infrastructure
GIS
Video
I&T Administration
$7.43M
$5.16M
$6.27M
$7.92M
2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget FY 2022-23 Proposed Budget Innovation and Technology 269 629
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Intergovernmental Revenue $ - $ 15,000 $ - $ -
Charges for Services $ 2,739,704 $ 3,996,438 $ 4,572,658 $ 3,916,540 Miscellaneous Revenue $ - $ 67,130 $ - $ -
Total Revenues $ 2,739,704 $ 4,078,568 $ 4,572,658 $ 3,916,540 Expenditures
Employee Compensation $ 2,193,929 $ 2,028,109 $ 2,072,164 $ 2,434,120 Employee Benefits $ 1,039,353 $ 729,278 $ 857,214 $ 991,799 Materials $ 1,611,936 $ 1,385,735 $ 1,716,016 $ 2,416,519 Contract Services $ 839,759 $ 516,877 $ 523,600 $ 835,469 Cost Allocation $ 1,437,210 $ 299,745 $ 303,672 $ 299,745 Special Projects $ 310,676 $ 198,377 $ 721,660 $ 858,528 Contingencies $ - $ - $ 71,944 $ 81,299
Total Expenditures $ 7,432,863 $ 5,158,121 $ 6,266,270 $ 7,917,479 Fund Balance $ (1,072,796) $ (394,967) $ (745,302) $ 412,601 General Fund Costs $ 3,620,365 $ 684,587 $ 948,310 $ 4,423,540 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Innovation and Technology 270 630
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Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.95 0.95 0.95 0.95
APPLICATIONS MANAGER 1.00 1.00 1.00 1.00
ASSET MANAGEMENT TECHNCIAN 1.00 1.00 1.00 0
BUSINESS SYSTEMS ANALYST 3.00 3.00 3.00 3.00
CHIEF TECHNOLOGY OFFICER 1.00 0.98 0.98 0.98
GIS ANALYST 1.00 1.00 1.00 1.00
GIS MANAGER 1.00 1.00 1.00 1.00
INFRASTRUCTURE MANAGER 1.00 1.00 1.00 1.00
I.T. ASSISTANT 2.00 2.00 2.00 2.00
MANAGEMENT ANALYST 0 0 0 1.00
MULTIMEDIA COMMUNICATIONS
SPEC
3.00 0 0 1.50
Total 14.95 11.93 11.93 13.43
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Innovation & Technology Administration
Budget Unit 610-30-300
Information Technology - I&T Administration - Innovation & Technology Administration Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 259,434
Fund Balance $ (259,434)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.5 FTE
Program Overview
The Innovation & Technology Department Administration Division is responsible for the strategic planning, governance, policy seWing, and leadership in the use of digital services for the City. The services include a state of the art network which provides transport for best of class business applications, e.g., financial, land management, recreation, asset management, HR, e-commerce and work order management. Additionally, Administration ensures oversight of budget, tactical plans, succession planning, partnership development (internal/external) and staffing. Procurement and budget monitoring are also responsibilities of Administration.
Service Objectives
Develop a roadmap to effectively leverage existing technology and adopt emerging technology to meet business needs.
Create and sustain a workplace atmosphere that promotes a balance between employee innovation, accountability and business needs.
Ensure two-way communication between and among the City organization and stakeholders.
Improve user experience including ease of use, availability, and accessibility within the context of compliance with industry standards.
Ensure transparent and easy access to City information and services via multiple technologies, e.g. social media, TV, web, and radio.
Proposed Budget
It is recommended that City Council approve a budget of $259,434 for the Innovation & Technology Administration program. This represents a decrease of $10,190 (-3.8%) from the FY 2021-22 Adopted Budget.
The decrease is due to a special one-time project in FY 2021-22.
Special Projects
The following table shows the special projects for the fiscal year.
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Project Appropriation Revenue Funding Source Description Aclima and
Envirosuite Pilot
Extension
$66,000 $66,000 Internal Service
Fund
FY 2021-22 City
Work Program:
Monitor and report
on Lehigh and
Stevens Creek
Quarries. Includes
noise and pollution
monitoring for these
locations.
Total $66,000 $66,000
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 235,631 $ - $ - $ -
Total Revenues $ 235,631 $ - $ - $ -
Expenditures
Employee Compensation $ 93,426 $ 120,302 $ 115,790 $ 115,790 Employee Benefits $ 42,452 $ 33,205 $ 49,027 $ 50,019
Materials $ 11,456 $ 5,178 $ 9,878 $ 11,451
Contract Services $ 1,440 $ 21,613 $ 15,300 $ 15,500
Cost Allocation $ 89,236 $ - $ - $ -
Special Projects $ - $ 140,684 $ 77,500 $ 66,000
Contingencies $ - $ - $ 2,129 $ 674
Total Expenditures $ 238,010 $ 320,982 $ 269,624 $ 259,434 Fund Balance $ (2,379) $ (320,982) $ (269,624) $ (259,434) General Fund Costs $ - $ - $ - $ -
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget ADMINISTRATIVE ASSISTANT 0.30 0.15 0.15 0.15
CHIEF TECHNOLOGY OFFICER 0.25 0.38 0.38 0.38
Total 0.55 0.53 0.53 0.53
There are no changes to the current level of staffing.
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Video
Budget Unit 100-31-305
General Fund - Video - Video
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 574,604
Fund Balance $ -
General Fund Costs $ 584,604
% Funded by General Fund 101.7%
Total Staffing 1.5 FTE
Program Overview
The multimedia budget is being split between the Innovation and Technology Department and the City Manager's Office.
The primary goal of the Multimedia Division is to increase public awareness, interest, understanding, and participation in the issues, programs, and services presented by the City of Cupertino. The staff promotes City services and programs through its 24/7 government access channel, radio station, digital signage network, City website, and numerous online video platforms. In addition, the video staff provides multimedia production services and technical support for all City departments. Multimedia staff also oversees the design, maintenance, and engineering of the City’s broadcast and audiovisual systems.
Service Objectives
Multimedia staff works together to manage and maintain the following city services:
City Channel, the government access television channel which provides 24/7 information to Cupertino residents, includes full coverage of city meetings, community events, town hall forums, press conferences, election coverage, and local speaker series, as well as educational programming and state government affairs programming
Webcasting and video on demand services for live streaming city meetings, events and other programs of interest
Radio Cupertino for emergency and community information for public service announcements, traffic alerts, and weather forecasts
Digital signage to promote city programs and events via electronic displays in city facilities Multimedia production services and maintenance of city video equipment Proposed Budget
It is recommended that City Council approve a budget of $574,604 for the Video program.
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1.5 positions and a portion of materials and contracts were transferred from the Multimedia program in Administration to the Video program in Innovation Technology.
In FY 2021-22 the entirety of the budget was in the City Manager's Office and totaled $916,374 (page 252 of the FY 2021-22 Adopted Budget). The current total budget when combining both this budget and the budget in City Manager totals $1,013,396, an increase of $97,022. The increase is due to increases in salary for increased part-time costs and the addition of overtime costs that were missed in last year's adopted budget. In addition, special project costs have increased significantly as well. One-time projects will vary from year to year.
Special Projects
The following table shows the special projects for the fiscal year.
Special project Appropriation Revenue Funding Source Description Enhanced
Videoconferencing
System for
Cupertino Room
$35,000 $35,000 General Fund Videoconferencing
enhancements
Cupertino Room
Lectern Upgrade $7,500 $7,500 General Fund Audiovisual gradelectern replacement Social Room Audio
Upgrade $16,500 $16,500 General Fund Upgrade to theaudio system Sports Center Audio
System Upgrade $9,000 $9,000 General Fund Upgrade to theaudio system Total $68,000 $68,000
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 8,003 $ 7,204 $ - $ -
Total Revenues $ 8,003 $ 7,204 $ - $ -
Expenditures
Employee Compensation $ 505,578 $ - $ - $ 246,871
Employee Benefits $ 210,977 $ - $ - $ 99,404
Materials $ 43,830 $ 76 $ - $ 61,417
Contract Services $ 77,271 $ - $ - $ 95,002
Cost Allocation $ 280,610 $ - $ - $ -
Special Projects $ 340,362 $ - $ - $ 68,000
Contingencies $ - $ - $ - $ 3,910
Total Expenditures $ 1,458,628 $ 76 $ - $ 574,604
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 1,450,626 $ (7,128) $ - $ 584,604
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.10 0 0 0
CHIEF TECHNOLOGY OFFICER 0.15 0 0 0
MULTIMEDIA COMMUNICATIONS
SPEC
3.00 0 0 1.50
Total 3.25 0 0 1.50
There are no changes to the current level of staffing.
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Public Access Support
Budget Unit 100-31-307
General Fund - Video - Public Access Support
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
In FY 2020-21, this program was transferred to the City Manager’s Office. A complete discussion of this program can be found under Budget Unit 100-12-307. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed.
Proposed Budget
There is no budget requested for this program.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ 73,850 $ - $ - $ -
Cost Allocation $ 1,828 $ - $ - $ -
Total Expenditures $ 75,678 $ - $ - $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 75,678 $ - $ - $ -
Staffing
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Staffing
There is no staffing associated with this program.
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Applications
Budget Unit 100-32-308
General Fund - Applications - Applications
Budget at a Glance
2023 Proposed Budget
Total Revenues $ 1,431,322
Total Expenditures $ 2,815,258
Fund Balance $ -
General Fund Costs $ 1,383,936
% Funded by General Fund 49.2%
Total Staffing 3.5 FTE
Program Overview
The Applications Division manages business requirements gathering, design, development, procurement, project management, implementation and ongoing maintenance and support of all enterprise-wide business systems and programs. These systems include Financial Enterprise Resource Planning (ERP), Land-use Management System, Recreation Management System and their related customer facing portals. Additionally Applications division is responsible for electronic content management (records retention) system and city’s procurement management system.
The Applications Division manages the City's website, Intranet, and mobile apps development. The division staff supports e-service programs and services like permiWing, licensing and enforcement. Applications division is responsible for creating custom SaaS soNware platforms like bid management solution and residential parking permits solution. They are also responsible for application integrations so critical business data can flow between enterprise platforms. Applications division staff also generate critical business analytics and reports to aid city staff in geWing insight through data visualization and helps department supervisors and managers in decision making and measurements of key performance index and goals.
Service Objectives
Deliver business solutions that meet customer requirements and integrate within the City's application framework.
Assist departments in developing streamlined and effective business processes that are easy to understand and translate into existing and new enterprise applications.
Work closely with City staff and members of the community to ensure that the City's enterprise application platforms are relevant and provide value to all the stakeholders.
Collaborate with various City departments to determine that the City's enterprise soNware solutions meet the functional requirements and long-term application implementation strategy of the organization.
Create and maintain effective online and mobile user access to municipal information and services.
Enable and facilitate the use of communication and technical resources by nontechnical staff and customers.
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Generate business data dashboards to city staff and external stakeholders.
Proposed Budget
It is recommended that City Council approve a budget of $2,815,258 for the Applications program. This represents an increase of $445,971 (18.8%) from the FY 2021-22 Adopted Budget.
Increases in Compensation and Benefits are mainly due to increased part-time staff. Increases in Materials, Contract Services, and Special Projects are due to new applications and enhancements to current applications.
Special Projects
The following table shows the special projects for the fiscal year.
Special Project Appropriation Revenue Funding
Source Description
ERP Phase I $106,928 $160,928 General
Fund Needs Analysis
Accela Citizen
Access Guide and
Wrapper
$25,000 $25,000 General
Fund Update to User Interface
Code Enforcement
Consolidated
Application
$40,000 $40,000 General
Fund
Consolidation of Code
Enforcement system
operations
Climate Action Plan
Implementation
Software
$20,000 $20,000 General
Fund
Climate Action plan
platform
Accela Roadmap $25,000 $25,000 General
Fund
Develop Systematic
Roadmap
ActiveNet Roadmap $25,000 $25,000 General
Fund
Develop Systematic
Roadmap
ZenDesk for Parks &
Recreation $40,000 $40,000 GeneralFund
Implement Customer
Service Solution
Semi Annual ADA
Consultant $35,000 $35,000 GeneralFund
City website ADA
Compliance
Crisis Management
Software $15,000 $15,000 GeneralFund
Customization of County
dashboard
Total $331,928 $331,928
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Intergovernmental Revenue $ - $ 15,000 $ - $ -
Charges for Services $ - $ 1,307,803 $ 1,613,055 $ 1,431,322 Miscellaneous Revenue $ - $ 67,130 $ - $ -
Total Revenues $ - $ 1,389,933 $ 1,613,055 $ 1,431,322
Expenditures
Employee Compensation $ 471,362 $ 635,662 $ 671,629 $ 722,798 Employee Benefits $ 153,882 $ 206,339 $ 242,843 $ 254,426 Materials $ 981,919 $ 749,988 $ 928,372 $ 1,254,233
Contract Services $ 236,801 $ 186,966 $ 195,400 $ 215,139 Cost Allocation $ 178,096 $ - $ - $ -
Special Projects $ - $ 57,693 $ 295,560 $ 331,928
Contingencies $ - $ - $ 35,483 $ 36,734
Total Expenditures $ 2,022,060 $ 1,836,648 $ 2,369,287 $ 2,815,258 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 2,022,061 $ 446,715 $ 756,232 $ 1,383,936 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget ADMINISTRATIVE ASSISTANT 0.15 0.30 0.30 0.30
APPLICATIONS MANAGER 1.00 1.00 1.00 1.00
BUSINESS SYSTEMS ANALYST 2.00 2.00 2.00 2.00
CHIEF TECHNOLOGY OFFICER 0.30 0.20 0.20 0.20
Total 3.45 3.50 3.50 3.50
There are no changes to the current level of staffing.
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Infrastructure
Budget Unit 610-34-310
Information Technology - Infrastructure - Infrastructure Budget at a Glance
2023 Proposed Budget
Total Revenues $ 1,556,269
Total Expenditures $ 2,721,957
Fund Balance $ 1,289,312
General Fund Costs $ 2,455,000
% Funded by General Fund 90.2%
Total Staffing 4.5 FTE
Program Overview
The IT Infrastructure Division is responsible for technology-related expenses for the citywide management of information technology services. The Infrastructure Manager and staff are responsible for computer helpdesk, network availability, and performance, security and compliance, incident response, disaster recovery and business continuity, project management of implementations and upgrades, purchasing and inventory control, technical training, and maintenance of systems. Infrastructure is also tasked with ensuring that the City continues to follow best practices in technology adoption and security practices.
Service Objectives
Provide and continuously improve helpdesk support as this function is oNen the face of IT that staff interacts with on a daily basis.
Maintain standards and procedures for the replacement, support, and maintenance of all City-owned computing devices, printers, networks, peripherals and systems defined by City policy.
Continue innovation and outreach to ensure the City follows best IT practices relating to equipment, policy, and security practices.
Proposed Budget
It is recommended that City Council approve a budget of $2,721,957 for the Infrastructure program. This represents an increase of $519,504 (23.6%) from the FY 2021-22 Adopted Budget.
Increases in Materials, Contract Services, and Special Projects are due to multi-year and new infrastructure and security enhancements.
Special Projects
The following table shows the special projects for the fiscal year.
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Special Project Appropriation Revenue Funding Source Description City Facilities Camera Capture
Expansion $60,000 $60,000 Internal ServiceFund Camera Capture System City Hall Enterprise Server and
Storage Tech Refresh $150,000 $150,000 Internal ServiceFund Server Environment
replacement
Supplemental Wi-Fi Expansion
in Public Areas $20,500 $20,500 Internal ServiceFund
Internet service to three
parks
Office 365 E5 Licenses $7,000 $7,000 Internal Service
Fund
Adding 40 developer
Licenses
Proactive Managed Risk and
Security Monitoring $23,000 $23,000 Internal ServiceFund Proactive cyber threat
monitoring
Public Bicycle Smart Rack
Docks Technology
Enhancement/Review
$2,000 $2,000 Internal Service
Fund
Public Bicycle Smart Rack
Docks improvements
Sign Shop Printer Warranty $3,000 $3,000 Internal Service Fund
Sign Shop Printer
maintenance
CAD&RMS WAN Link $7,200 $7,200 Internal Service
Fund
secured link for computer
aided dispatch
Digital Signage $25,000 $25,000 Internal Service
Fund
Pilot digital signage solution
for 1 park
Total $297,700 $297,700
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 1,629,376 $ 1,767,098 $ 1,882,195 $ 1,556,269 Total Revenues $ 1,629,376 $ 1,767,098 $ 1,882,195 $ 1,556,269 Expenditures
Employee Compensation $ 605,073 $ 660,555 $ 657,676 $ 683,644 Employee Benefits $ 353,426 $ 270,305 $ 307,679 $ 314,130 Materials $ 445,355 $ 470,005 $ 559,969 $ 793,929
Contract Services $ 303,138 $ 212,752 $ 192,900 $ 305,328 Cost Allocation $ 701,888 $ 299,745 $ 303,672 $ 299,745 Special Projects $ (29,686) $ - $ 159,400 $ 297,700
Contingencies $ - $ - $ 21,157 $ 27,481
Total Expenditures $ 2,379,194 $ 1,913,362 $ 2,202,453 $ 2,721,957 Fund Balance $ (677,818) $ 98,735 $ (128,180) $ 1,289,312 General Fund Costs $ 72,000 $ 245,000 $ 192,078 $ 2,455,000 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget ADMINISTRATIVE ASSISTANT 0.30 0.30 0.30 0.30
BUSINESS SYSTEMS ANALYST 1.00 1.00 1.00 1.00
CHIEF TECHNOLOGY OFFICER 0.20 0.20 0.20 0.20
INFRASTRUCTURE MANAGER 1.00 1.00 1.00 1.00
I.T. ASSISTANT 2.00 2.00 2.00 2.00
Total 4.50 4.50 4.50 4.50
There are no changes to the current level of staffing.
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GIS
Budget Unit 610-35-986
Information Technology - GIS - GIS
Budget at a Glance
2023 Proposed Budget
Total Revenues $ 928,949
Total Expenditures $ 1,546,226
Fund Balance $ (617,277)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 3.4 FTE
Program Overview
The Geographic Information Systems (GIS) program captures, manages, analyzes, and displays all forms of geographically referenced information for the City of Cupertino. Through maps, reports, dashboards, and charts we provide ways to view, understand, question, interpret, and visualize, our City in ways that reveal relationships, paWerns, and trends. The GIS Program works to help our staff, citizens, business, and development communities answer questions and solve problems by looking at our data in a way that is quickly understood and easily shared – on a map!
Service Objectives
Cupertino GIS works to provide and support state-of-the-art GIS mapping services and applications in the rapidly evolving and expanding field of geospatial technology.
Create, collect, maintain, and distribute high quality, up-to-date, and complete geospatial data.
Ensure that the City’s GIS systems and data are available for day-to-day City and regional purposes.
Share the City’s GIS data and services as widely as possible.
Raise the awareness of GIS.
Integrate spatial technology into Cupertino’s business processes and applications.
Support emergency planning, response, and recovery.
Proposed Budget
It is recommended that City Council approve a budget of $1,546,226 for the GIS program. This represents an increase of $121,320 (8.5%) from the FY 2021-22 Adopted Budget.
Increases in Materials and Contract Services are due to new applications and enhancements to current applications, this is offset by a decrease in special projects.
Special Projects
The following table shows the special projects for the fiscal year.
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Special Project Appropriation Revenue Funding Source Description Drone Instructor $1,600 $1,600 Internal Service
Fund
Required training for Drone
pilots
Additional Telematics
Devices $5,300 $5,300 Internal ServiceFund Additional Licenses LaserFiche Scanning $30,000 $30,000 Internal Service
Fund City Document scanning
Additional Amazon ec2
instance (t3aXlarge) $5,000 $5,000 Internal ServiceFund Cloud subscription fee Business Process
Automation $42,000 $42,000 Internal ServiceFund
Paper form conversion to
digital
Google Query $5,000 $5,000 Internal Service
Fund
Pilot to retrieve traffic speed
and incident data
Geotab Keyless Solution $6,000 $6,000 Internal Service
Fund Keyless storage for fleet keys
Total $94,900 $94,900
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 866,694 $ 914,333 $ 1,077,408 $ 928,949 Total Revenues $ 866,694 $ 914,333 $ 1,077,408 $ 928,949 Expenditures
Employee Compensation $ 518,490 $ 611,590 $ 627,069 $ 665,017 Employee Benefits $ 278,616 $ 219,429 $ 257,665 $ 273,820 Materials $ 129,376 $ 160,488 $ 217,797 $ 295,489
Contract Services $ 147,259 $ 95,546 $ 120,000 $ 204,500 Cost Allocation $ 185,552 $ - $ - $ -
Special Projects $ - $ - $ 189,200 $ 94,900
Contingencies $ - $ - $ 13,175 $ 12,500
Total Expenditures $ 1,259,293 $ 1,087,053 $ 1,424,906 $ 1,546,226 Fund Balance $ (392,599) $ (172,720) $ (347,498) $ (617,277) General Fund Costs $ - $ - $ - $ -
FY 2022-23 Proposed Budget Innovation and Technology 287 647
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Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.10 0.20 0.20 0.20
ASSET MANAGEMENT
TECHNCIAN
1.00 1.00 1.00 0
CHIEF TECHNOLOGY OFFICER 0.10 0.20 0.20 0.20
GIS ANALYST 1.00 1.00 1.00 1.00
GIS MANAGER 1.00 1.00 1.00 1.00
MANAGEMENT ANALYST 0 0 0 1.00
Total 3.20 3.40 3.40 3.40
Changes reflect position reclassification of Asset Management Technician to Management Analyst.
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Administrative Services
FY 2022-23 Proposed Budget Administrative Services 289
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Department Overview
Budget Units
Budget Unit Program 2023 Proposed Budget
Administrative Services $ 901,880
100-40-400 Administrative Services Administration $ 901,880 Finance $ 2,879,237
100-41-405 Accounting $ 1,745,952
100-41-406 Business Licenses $ 473,445
100-41-425 Purchasing $ 369,240
100-41-426 Budget $ 290,600
Human Resources $ 6,190,347
100-44-412 Human Resources $ 1,505,541
642-44-414 Retiree Benefits $ 1,388,276
100-44-417 Insurance Administration $ 2,034,411
620-44-418 Workers Compensation Insurance $ 516,946
641-44-419 Short Term and Long Term Disability $ 98,523 641-44-420 Compensated Absences $ 646,650
Total $ 9,971,464
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Budget at a Glance
2023 Proposed Budget
Total Revenues $ 4,403,661
Total Expenditures $ 9,971,464
Fund Balance $ (1,332,250)
General Fund Costs $ 4,235,553
% Funded by General Fund 42.5%
Total Staffing 18.9 FTE
Organization
Kristina Alfaro, Director of Administrative Services
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Performance Measures
Finance Division
Goal: Financial Stability - Provide a sustainable level of core services that are funded from ongoing and stable revenue sources.
Benefit: Citizens can enjoy high quality of services that meet community priorities.
Performance Measure
FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Ongoing
Target
General Fund fund balance as a % of
budgeted appropriations 69% 103% 78% 35%
Credit Rating AA+ AA+ AA+ AA+
Actual revenue vs. budget (% below
budget) -7% -19% -35% 10%
Actual expenditures (% below budget) 17% 15% 23% 5%
Funding allocated to high priority
services (Public Works, Community
Development, Law Enforcement)
43% 53% 53% 63%
Human Resources Division
Goal: To create a thriving organization with meaningful careers in public service.
Benefit: The agency supports a professional and engaged workforce offering diverse and quality community services.
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Performance Measure
FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Ongoing
Target
# of Worker’s Compensation Cases 15 10 13 0
Total recordable Injury Rate YTD 5.7% 5.0% 6.4% 0%
% absenteeism (% of total annual
work hours) 3% 2% 2% 2%
% turnover rate* 3% 5% 3% 1%
% Employee satisfaction N/A N/A N/A 100%
% Employee participation in wellness
activities 47% 43% 47% 75%
Average # of applications received per
recruitment 41 70 48 50
Recruitment timeline - # days from
hiring request to offer letter 85 78 70 60
# of employees using the Telework
program
N/A N/A N/A 17
% Utilization of full-service employee
portal 100% N/A** N/A** 100%
*Data for resignations only
**Data not applicable
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Workload Indicators
Finance Division
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
# of vendor checks processed 5,668 4,457 2,471
# of payroll checks processed 9,953 7,816 4,014
# of business license applications 901 1,061 410
# of business license renewals 2,842 2,467 677
# of journal entries posted 4,637 3,915 2,108
# of purchase orders approved 495 534 326
# of receipts processed 14,204 10,367 6,016
Human Resources Division
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
# of regular recruitments 20 24 15
# of regular new hires 20 22 23
# of temporary new hires N/A 18 12
# of personnel payroll changes 1,104 834 441
# of full-time employee exits processed 14 30 9
# of mandated training classes offered* N/A 18 8
# of employees participating in the wellness
program
91 90 93
* some trainings mandated every other year, however not on the same annual schedule Proposed Budget
It is recommended that City Council approve a budget of $9,971,464 for the Administrative Services department. This represents an increase of $2,200,349 (28.3%) from the FY 2021-22 Adopted Budget.
The increase in compensation and benefits is due to the requests for a Purchasing Manager and a Budget Manager. The increase in contract services is primarily due to increases in general liability and property insurance premiums, which are increasing by over $760,000 compared to last year's budget. One-time special projects are requested for a fee study and federal grants program.
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Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
62.1%
28.9%
9.0%
Human Resources
Finance
Administrative Services
$6.55M
$7.36M
$7.77M
$9.97M
2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget FY 2022-23 Proposed Budget Administrative Services 296
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 3,898,699 $ 4,156,784 $ 4,837,735 $ 4,403,661 Miscellaneous Revenue $ 35,060 $ 8,775 $ - $ -
Total Revenues $ 3,933,759 $ 4,165,559 $ 4,837,735 $ 4,403,661 Expenditures
Employee Compensation $ 2,028,226 $ 2,229,343 $ 2,259,659 $ 2,688,101 Employee Benefits $ 2,096,913 $ 2,191,476 $ 2,321,303 $ 2,660,698 Materials $ 184,873 $ 83,977 $ 166,641 $ 191,213
Contract Services $ 1,972,395 $ 2,513,838 $ 2,612,344 $ 3,719,161 Cost Allocation $ 266,331 $ 341,705 $ 341,693 $ 349,530 Special Projects $ - $ - $ - $ 265,000
Contingencies $ - $ - $ 69,475 $ 97,761
Total Expenditures $ 6,548,738 $ 7,360,339 $ 7,771,115 $ 9,971,464 Fund Balance $ 1,807,757 $ (1,678,654) $ (941,848) $ (1,332,250) General Fund Costs $ 4,422,735 $ 1,516,125 $ 1,991,532 $ 4,235,553 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ACCOUNTANT II 2.00 1.00 2.00 2.00
ACCOUNT CLERK II 2.00 3.00 3.00 3.00
ACCOUNTING TECHNICIAN 1.00 1.00 1.00 1.00
ADMINISTRATIVE ASSISTANT 1.00 0.95 0.95 0.95
BUDGET MANAGER 0 0 0 1.00
DIRECTOR OF ADMIN SERVICES 1.00 1.00 1.00 1.00
FINANCE MANAGER 1.00 0.95 0.95 0.95
HUMAN RESOURCES ANALYST II 1.00 2.00 2.00 2.00
HUMAN RESOURCES MANAGER 1.00 1.00 1.00 1.00
HUMAN RESOURCES TECH 1.00 2.00 2.00 2.00
PURCHASING MANAGER 0 0 0 1.00
SENIOR ACCOUNTANT 1.00 1.00 1.00 1.00
SENIOR MANAGEMENT
ANALYST
2.00 2.00 2.00 2.00
Total 14.00 15.90 16.90 18.90
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Administrative Services Administration
Budget Unit 100-40-400
General Fund - Administrative Services - Administrative Services Administration Budget at a Glance
2023 Proposed Budget
Total Revenues $ 156,003
Total Expenditures $ 901,880
Fund Balance $ -
General Fund Costs $ 745,877
% Funded by General Fund 82.7%
Total Staffing 3.8 FTE
Program Overview
The Administrative Services Administration program oversees and coordinates Human Resources/Risk Management, Finance, Purchasing, Budget, and Treasury. Staff support is provided to the Fiscal Strategic and Audit Committees, as well as the Santa Clara County Leadership Academy.
Service Objectives
Manage the City's investment portfolio to obtain safety of funds, liquidity, and a reasonable rate of return.
Perform special projects for the City Manager.
Manage the City's Contract for Law Enforcement Services with the Santa Clara County Sheriff's Office.
Provide staff support to the Santa Clara County Leadership Academy Proposed Budget
It is recommended that City Council approve a budget of $901,880 for the Administrative Services Administration program. This represents a decrease of $24,423 (-2.6%) from the FY 2021-22 Adopted Budget.
This budget is relatively unchanged from last fiscal year. The decrease in Materials and Contract Services is due to the transfer of printing costs for the budget document to the Budget program.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 69,263 $ 185,799 $ 183,169 $ 156,003 Miscellaneous Revenue $ - $ (2,800) $ - $ -
Total Revenues $ 69,263 $ 182,999 $ 183,169 $ 156,003
Expenditures
Employee Compensation $ 541,196 $ 593,523 $ 594,796 $ 588,164 Employee Benefits $ 239,759 $ 249,510 $ 280,580 $ 282,451 Materials $ 76,682 $ 17,077 $ 46,067 $ 29,841
Contract Services $ - $ 8,323 $ 3,618 $ 661
Cost Allocation $ 35,067 $ - $ - $ -
Contingencies $ - $ - $ 1,242 $ 763
Total Expenditures $ 892,704 $ 868,433 $ 926,303 $ 901,880 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 823,441 $ 685,434 $ 743,134 $ 745,877 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ADMINISTRATIVE ASSISTANT 1.00 0.95 0.95 0.95
DIRECTOR OF ADMIN SERVICES 0.80 0.80 0.80 0.80
SENIOR MANAGEMENT
ANALYST
1.00 2.00 2.00 2.00
Total 2.80 3.75 3.75 3.75
There are no changes to the current level of staffing.
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Accounting
Budget Unit 100-41-405
General Fund - Finance - Accounting
Budget at a Glance
2023 Proposed Budget
Total Revenues $ 2,105,135
Total Expenditures $ 1,745,952
Fund Balance $ -
General Fund Costs $ (359,183)
% Funded by General Fund -20.6%
Total Staffing 6.9 FTE
Program Overview
The Finance Division oversees all financial accounting and treasury functions for the City. Accurate and timely maintenance of all City financial records, including financial reporting, revenue collection, banking and investments, disbursement of all funds, and payroll processing are handled by the Finance Division. All required Federal, State and other regulatory reporting with respect to the City's financial condition are prepared in the Accounting program of Finance. In addition, Finance monitors the City's two investment policies, manages budget-to-actual activities for both operational and capital budgets, performs all financial analyses, conducts research, and prepares reports on all fiscal maWers of the City for internal and external customers.
Service Objectives
Process all financial transactions of the City of Cupertino, including general ledger accounting, cash management and investment of City funds, payroll, accounts payable, revenue collections, banking, and miscellaneous billing.
Record all City financial transactions prudently and within all regulatory requirements.
Produce timely and accurate financial reports.
Maintain a high level of professionalism when fulfilling the City’s financial policies, processing its financial transactions, and representing the City to its residents.
Respond promptly to inquiries from the public and other City departments.
Proposed Budget
It is recommended that City Council approve a budget of $1,745,952 for the Accounting program. This represents an increase of $142,952 (8.9%) from the FY 2021-22 Adopted Budget.
The increase in Compensation is due to part-time staff that was not budgeted in FY 2021-22. The increase in Special Projects is due to a fee study of the City's costs of service and fees for service. The fee study will assess the City’s fees to ensure appropriate cost recovery and assess the costs of service to facilitate the allocation of overhead costs through the Cost Allocation Plan. The last fee study was performed in FY 2015-16.
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Special Projects
The following table shows the special projects for the fiscal year.
Project Appropriation Revenue Funding Source Description Fee Study $75,000 $75,000 General Fund Fee study of City services and costs.
Total $75,000 $75,000
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 1,673,028 $ 2,114,792 $ 2,175,347 $ 2,105,135 Miscellaneous Revenue $ 35,060 $ 11,553 $ - $ -
Total Revenues $ 1,708,088 $ 2,126,345 $ 2,175,347 $ 2,105,135 Expenditures
Employee Compensation $ 730,307 $ 858,215 $ 831,742 $ 875,847 Employee Benefits $ 320,800 $ 370,373 $ 401,927 $ 428,205 Materials $ 16,564 $ 8,487 $ 23,131 $ 24,009
Contract Services $ 188,162 $ 248,303 $ 337,192 $ 333,942 Cost Allocation $ 58,882 $ - $ - $ -
Special Projects $ - $ - $ - $ 75,000
Contingencies $ - $ - $ 9,008 $ 8,949
Total Expenditures $ 1,314,715 $ 1,485,378 $ 1,603,000 $ 1,745,952 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (393,373) $ (640,967) $ (572,347) $ (359,183) Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget ACCOUNTANT II 1.90 1.00 1.90 1.90
ACCOUNT CLERK II 1.50 2.00 2.00 2.00
ACCOUNTING TECHNICIAN 1.00 1.00 1.00 1.00
FINANCE MANAGER 1.00 0.95 0.95 0.95
SENIOR ACCOUNTANT 1.00 1.00 1.00 1.00
Total 6.40 5.95 6.85 6.85
There are no changes to the current level of staffing.
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Business Licenses
Budget Unit 100-41-406
General Fund - Finance - Business Licenses
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 473,445
Fund Balance $ -
General Fund Costs $ 473,445
% Funded by General Fund 100.0%
Total Staffing 1.1 FTE
Program Overview
The Business Licenses program monitors business licensing activity for compliance with the City Municipal Code and applicable state law.
Service Objectives
Issue business licenses to entities conducting business within the city limits of Cupertino.
Collect appropriate business license fees.
Monitor compliance with the Business License Tax Code and provide useful information related to business activity to City departments.
Identify non-compliant business activity.
Proposed Budget
It is recommended that City Council approve a budget of $473,445 for the Business Licenses program. This represents an increase of $69,068 (17.1%) from the FY 2021-22 Adopted Budget.
The increase is due to bank charges for business licenses transactions in Accela.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 86,146 $ 97,527 $ 101,611 $ 101,611 Employee Benefits $ 46,954 $ 52,727 $ 62,881 $ 64,279
Materials $ 179 $ 83 $ - $ -
Contract Services $ 9,003 $ 61,787 $ - $ 65,000
Cost Allocation $ 95,029 $ 252,034 $ 239,885 $ 240,930
Contingencies $ - $ - $ - $ 1,625
Total Expenditures $ 237,311 $ 464,158 $ 404,377 $ 473,445 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 237,311 $ 464,157 $ 404,377 $ 473,445 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget ACCOUNTANT II 0.10 0 0.10 0.10
ACCOUNT CLERK II 0.50 1.00 1.00 1.00
Total 0.60 1.00 1.10 1.10
There are no changes to the current level of staffing.
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Purchasing
Budget Unit 100-41-425
General Fund - Finance - Purchasing
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 369,240
Fund Balance $ -
General Fund Costs $ 369,240
% Funded by General Fund 100.0%
Total Staffing 1.0 FTE
Program Overview
The Purchasing program provides centralized oversight and management over the City's procurement of goods and services. Centralized procurement assures fair and open acquisition processes that seek to obtain maximum value for each dollar spent. Major activities include soliciting formal competitive bids and proposals, obtaining quotes, and participating in cooperative procurements with other governmental agencies. In addition, the Purchasing program assists City employees in complying with all legal and ethical requirements.
Service Objectives
Oversee and manage the procurement of goods and services by the City while ensuring compliance with applicable federal, state, and local laws, ordinances, rules, and regulations.
Develop and implement strategic procurement planning, procurement policies and procedures, quality control, procurement training, electronic procurement systems, and procurement card administration.
Provide professional support and contractual advice to all stakeholders involving contractual services, consultants, equipment, supplies, construction, capital improvements, and other applicable activities.
Keep informed of current developments in the field of purchasing, prices, market conditions, and new products.
Proposed Budget
It is recommended that City Council approve a budget of $369,240 for the Purchasing program.
Procurement is a new program in FY 2022-23. The City's internal auditor, Moss Adams, conducted a Procurement Operational Review and recommended the City take steps toward greater centralization of procurement activities and elevate procurement to a strategic function. The City is requesting a Purchasing Manager position to:
Manage the implementation plan for the Procurement Operational Review.
Oversee and manage procurement operations to ensure compliance with laws, ordinances, rules, and regulations.
FY 2022-23 Proposed Budget Administrative Services 306
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Design and implement procurement policies and procedures and procurement training for City staff.
Special Projects
The following table shows the special projects for the fiscal year.
Project Appropriation Revenue Funding Source Description Federal Grants
Consultant $100,000 $100,000 General Fund
Consultant to help
the City maximize
Federal grant
revenues
Total $100,000 $100,000
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ - $ - $ - $ 180,955
Employee Benefits $ - $ - $ - $ 84,996
Materials $ - $ - $ - $ 3,209
Special Projects $ - $ - $ - $ 100,000
Contingencies $ - $ - $ - $ 80
Total Expenditures $ - $ - $ - $ 369,240
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ - $ - $ 369,240
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget PURCHASING MANAGER 0 0 0 1.00
Total 0 0 0 1.00
The increase in staffing is due to a request for a Purchasing Manager.
FY 2022-23 Proposed Budget Administrative Services 307
667
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Budget
Budget Unit 100-41-426
General Fund - Finance - Budget
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 290,600
Fund Balance $ -
General Fund Costs $ 290,600
% Funded by General Fund 100.0%
Total Staffing 1.0 FTE
Program Overview
The Budget program develops, delivers, and manages the annual operating budget. The Budget program also develops the twenty-year long-term financial forecast and updates revenue and expenditure projections.
Additionally, the Budget program provides financial planning and fiscal analysis on City issues and complex business decisions.
Service Objectives
Develops the annual operating budget.
Coordinates the preparation and publication of the operating budget document.
Communicates the budget through the City's interactive financial transparency portal.
Engages residents in the budgeting process.
Develops the Twenty-Year General Fund Financial Forecast.
Prepares and updates revenue and expenditure forecasts.
Analyze budget performance during the year and prepare Quarterly Financial Reports.
Provides departments with timely and accurate financial reports to assist them in their daily decisionmaking.
Assists departments with any necessary budget amendments during the year.
Advises the City in the areas of short and long-term financial planning and fiscal analysis.
Advises the City in developing and implementing sound financial policies.
Proposed Budget
It is recommended that City Council approve a budget of $290,600 for the Budget program.
Budget is a new program for FY 2022-23. The City is requesting a Budget Manager to provide more resources to manage the City's budget process. Currently, the Finance Manager manages all financial operations, including accounting, business licensing, and budget.
Revenues and Expenditures
FY 2022-23 Proposed Budget Administrative Services 308
668
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ - $ - $ - $ 180,955
Employee Benefits $ - $ - $ - $ 84,996
Materials $ - $ - $ - $ 21,091
Contract Services $ - $ - $ - $ 2,957
Contingencies $ - $ - $ - $ 601
Total Expenditures $ - $ - $ - $ 290,600
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ - $ - $ 290,600
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget BUDGET MANAGER 0 0 0 1.00
Total 0 0 0 1.00
The increase in staffing is due to a request for a Budget Manager.
FY 2022-23 Proposed Budget Administrative Services 309
669
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Human Resources
Budget Unit 100-44-412
General Fund - Human Resources - Human Resources
Budget at a Glance
2023 Proposed Budget
Total Revenues $ 1,706,378
Total Expenditures $ 1,505,541
Fund Balance $ -
General Fund Costs $ (200,837)
% Funded by General Fund -13.3%
Total Staffing 4.9 FTE
Program Overview
The Human Resources Division is responsible for the administration of human resource, employee benefits, and labor relation programs including personnel selection, classification, compensation, equal employment opportunity, labor negotiations, employee relations, employee training and development, benefits, and retirement. In addition, Human Resources administers risk management, safety and wellness programs, and a self-insured workers’ compensation program. Funding for retiree medical insurance is also covered in the Human Resources budget.
Service Objectives
Provide a working environment where respect for the individual is encouraged and safeguarded.
Provide timely personnel services to departments and divisions in a fair, objective, and equitable manner.
Enter into agreements with employee groups concerning terms and conditions of employment.
Provide an employee development program addressing immediate and long-term training needs.
Provide departments a listing of qualified persons for employment consideration within sixty days of an authorized vacant position.
Ensure equal employment opportunities.
Administer classification plan.
Administer employee benefits.
Provide personnel services consistent with the operational needs of the user department.
Proposed Budget
It is recommended that City Council approve a budget of $1,505,541 for the Human Resources program. This represents an increase of $26,426 (1.8%) from the FY 2021-22 Adopted Budget.
This budget is relatively unchanged from last fiscal year. Contract Services are decreasing because a salary study and chief negotiator for labor negotiations were budgeted in FY 2021-22. Special projects are increasing due to the hybrid recruitment strategy and online marketing and branding.
FY 2022-23 Proposed Budget Administrative Services 310
670
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Special Projects
The following table shows the special projects for the fiscal year.
Project Appropriation Revenue Funding Source Description Hybrid Recruitment
Strategy $40,000 $40,000 General Fund
Consultant fees for
search portion of
recruitments for
Executive and
Senior Management
level positions, and
other key positions
as necessary
Online Marketing
and Branding $50,000 $50,000 General Fund
Consultant fees to
develop a
comprehensive
Talent Attraction
campaign for the
City
Total $90,000 $90,000
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Administrative Services 311
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 959,351 $ 1,609,812 $ 2,122,380 $ 1,706,378 Miscellaneous Revenue $ - $ 22 $ - $ -
Total Revenues $ 959,351 $ 1,609,834 $ 2,122,380 $ 1,706,378 Expenditures
Employee Compensation $ 623,303 $ 635,667 $ 683,904 $ 711,571 Employee Benefits $ 321,161 $ 281,792 $ 327,828 $ 320,794 Materials $ 84,975 $ 58,330 $ 97,443 $ 113,063
Contract Services $ 463,988 $ 568,564 $ 358,540 $ 260,767 Cost Allocation $ 42,307 $ - $ - $ -
Special Projects $ - $ - $ - $ 90,000
Contingencies $ - $ - $ 11,400 $ 9,346
Total Expenditures $ 1,535,734 $ 1,544,353 $ 1,479,115 $ 1,505,541 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 576,383 $ (65,481) $ (643,265) $ (200,837) Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
DIRECTOR OF ADMIN SERVICES 0.20 0.20 0.20 0.20
HUMAN RESOURCES ANALYST II 0.80 1.70 1.70 1.70
HUMAN RESOURCES MANAGER 1.00 1.00 1.00 1.00
HUMAN RESOURCES TECH 0.95 1.95 1.95 1.95
SENIOR MANAGEMENT
ANALYST
0.90 0 0 0
Total 3.85 4.85 4.85 4.85
There are no changes to the current level of staffing.
FY 2022-23 Proposed Budget Administrative Services 312
672
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Retiree Benefits
Budget Unit 642-44-414
Retiree Medical - Human Resources - Retiree Benefits
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 1,388,276
Fund Balance $ (1,388,276)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
The Retiree Benefits program administers the City’s Other Post-Employment Benefits (OPEB).
Service Objectives
Provide investment oversight and appropriate funding for the City’s retiree medical liability. The City established a trust account with Public Agency Retirement Services (PARS) that will fund the future liability.
Annual contributions from the City are deposited into the trust and invested in a portfolio of equity, bond, and money market funds.
Proposed Budget
It is recommended that City Council approve a budget of $1,388,276 for the Retiree Benefits program. This represents an increase of $146,350 (11.8%) from the FY 2021-22 Adopted Budget.
The increase is due to an increase in the actuarially determined contribution's normal cost for the City's Other Post-Employment Benefits (OPEB) plan. Starting in FY 2022-23, the City plans to fund OPEB costs with the City’s Section 115 OPEB Trust as the City’s OPEB plan is over 100% funded. Funding OPEB costs with the OPEB Trust will eliminate the transfers from the General Fund to the Retiree Medical Fund.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Administrative Services 313
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Benefits $ 1,142,793 $ 1,220,074 $ 1,227,045 $ 1,373,494 Cost Allocation $ 6,262 $ 10,982 $ 14,881 $ 14,782
Total Expenditures $ 1,149,055 $ 1,231,056 $ 1,241,926 $ 1,388,276 Fund Balance $ 1,242,945 $ (1,185,056) $ (169,215) $ (1,388,276) General Fund Costs $ 2,392,000 $ 46,000 $ 1,072,711 $ - Staffing
There is no staffing associated with this program.
FY 2022-23 Proposed Budget Administrative Services 314
674
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Insurance Administration
Budget Unit 100-44-417
General Fund - Human Resources - Insurance Administration Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 2,034,411
Fund Balance $ -
General Fund Costs $ 2,034,411
% Funded by General Fund 100.0%
Total Staffing 0.2 FTE
Program Overview
The Insurance Administration program manages Risk Management safety programs and self-insured Workers’ Compensation and General Liability programs.
Service Objectives
Satisfy statutory regulations regarding Workers’ Compensation and employee safety.
Promote work environment that emphasizes safe work practices.
Proposed Budget
It is recommended that City Council approve a budget of $2,034,411 for the Insurance Administration program. This represents an increase of $1,069,059 (110.7%) from the FY 2021-22 Adopted Budget.
The increase is primarily due to the annual premium increase for Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA). The premium is increasing by approximately $364,000, or 40%, compared to last year's actuals, and $761,000, or 147%, compared to last year's budget.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Administrative Services 315
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 959,351 $ - $ - $ -
Total Revenues $ 959,351 $ - $ - $ -
Expenditures
Employee Compensation $ 18,312 $ 16,053 $ 19,005 $ 19,953 Employee Benefits $ 8,734 $ 6,943 $ 8,730 $ 9,000
Materials $ 2 $ - $ - $ -
Contract Services $ 602,487 $ 764,636 $ 866,155 $ 1,903,469 Cost Allocation $ 7,789 $ 46,350 $ 49,808 $ 54,402
Contingencies $ - $ - $ 21,654 $ 47,587
Total Expenditures $ 637,324 $ 833,982 $ 965,352 $ 2,034,411 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (322,027) $ 833,982 $ 965,352 $ 2,034,411 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
HUMAN RESOURCES ANALYST II 0.05 0.10 0.10 0.10
HUMAN RESOURCES TECH 0.05 0.05 0.05 0.05
SENIOR MANAGEMENT
ANALYST
0.05 0 0 0
Total 0.15 0.15 0.15 0.15
There are no changes to the current level of staffing.
FY 2022-23 Proposed Budget Administrative Services 316
676
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Workers Compensation Insurance
Budget Unit 620-44-418
Workers' Compensation - Human Resources - Workers Compensation Insurance Budget at a Glance
2023 Proposed Budget
Total Revenues $ 436,145
Total Expenditures $ 516,946
Fund Balance $ (80,801)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.2 FTE
Program Overview
This program provides oversight of the Workers’ Compensation program, including claims, proactive Risk Management, return to work accommodations and excess workers compensation insurance.
Service Objectives
Manage employee personal injuries and illnesses and provide proactive risk management for disability avoidance.
Monitor costs associated with claims.
Analyze and implement proactive measures to curtail costs.
Implement a return to work policy.
Proposed Budget
It is recommended that City Council approve a budget of $516,946 for the Workers Compensation Insurance program. This represents an increase of $82,106 (18.9%) from the FY 2021-22 Adopted Budget.
The increase is due to an increase in the premium for Excess Workers' Compensation (PRISM). Worker's Compensation premiums have increased due to increases in the pool rates and the City's estimated FY 2022-23 payroll.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Administrative Services 317
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 237,706 $ 246,381 $ 356,839 $ 436,145 Total Revenues $ 237,706 $ 246,381 $ 356,839 $ 436,145
Expenditures
Employee Compensation $ 28,962 $ 28,358 $ 28,601 $ 29,045 Employee Benefits $ 16,712 $ 10,057 $ 12,312 $ 12,483
Materials $ 6,471 $ - $ - $ -
Contract Services $ 160,237 $ 35,105 $ 356,839 $ 436,145 Cost Allocation $ 16,672 $ 24,572 $ 28,167 $ 28,369
Contingencies $ - $ - $ 8,921 $ 10,904
Total Expenditures $ 229,054 $ 98,092 $ 434,840 $ 516,946 Fund Balance $ 8,653 $ 148,289 $ (78,001) $ (80,801)
General Fund Costs $ - $ - $ - $ -
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
HUMAN RESOURCES ANALYST II 0.15 0.20 0.20 0.20
SENIOR MANAGEMENT
ANALYST
0.05 0 0 0
Total 0.20 0.20 0.20 0.20
There are no changes to the current level of staffing.
FY 2022-23 Proposed Budget Administrative Services 318
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Short Term and Long Term Disability
Budget Unit 641-44-419
Compensated Absence/LTD - Human Resources - Short Term and Long Term Disability Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 98,523
Fund Balance $ (98,523)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
This program oversees claims and premiums associated with Short Term and Long Term Disability.
Service Objectives
Obtain and manage insurance policies
Negotiate rates
Coordination of claims
Proposed Budget
It is recommended that City Council approve a budget of $98,523 for the Short Term and Long Term Disability program. This represents an increase of $2,911 (3.0%) from the FY 2021-22 Adopted Budget.
This budget is relatively unchanged from last fiscal year.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Administrative Services 319
679
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ 167,319 $ 121,910 $ 90,000 $ 93,420 Cost Allocation $ 1,634 $ 2,712 $ 3,362 $ 2,767
Contingencies $ - $ - $ 2,250 $ 2,336
Total Expenditures $ 168,953 $ 124,622 $ 95,612 $ 98,523 Fund Balance $ (168,953) $ (124,622) $ (95,612) $ (98,523) General Fund Costs $ - $ - $ - $ -
Staffing
There is no staffing associated with this program.
FY 2022-23 Proposed Budget Administrative Services 320
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Compensated Absences
Budget Unit 641-44-420
Compensated Absence/LTD - Human Resources - Compensated Absences Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 646,650
Fund Balance $ 235,350
General Fund Costs $ 882,000
% Funded by General Fund 136.4%
Total Staffing FTE
Program Overview
This program provides for payment of liabilities associated with employees retiring or leaving service.
Service Objectives
Properly account and disburse benefits as set forth in the employee contracts.
Proposed Budget
It is recommended that City Council approve a budget of $646,650 for the Compensated Absences program.
This represents an increase of $26,060 (4.2%) from the FY 2021-22 Adopted Budget.
This budget is relatively unchanged from last fiscal year. The budget is estimated based on 50% of hours eligible to be cashed out.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Administrative Services 321
681
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Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ 381,199 $ 705,210 $ 600,000 $ 622,800 Cost Allocation $ 2,689 $ 5,055 $ 5,590 $ 8,280
Contingencies $ - $ - $ 15,000 $ 15,570
Total Expenditures $ 383,888 $ 710,265 $ 620,590 $ 646,650 Fund Balance $ 725,112 $ (517,265) $ (599,020) $ 235,350 General Fund Costs $ 1,109,000 $ 193,000 $ 21,570 $ 882,000 Staffing
There is no staffing associated with this program.
FY 2022-23 Proposed Budget Administrative Services 322
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Parks and Recreation
FY 2022-23 Proposed Budget Parks and Recreation 323
683
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FY 2022-23 Proposed Budget Parks and Recreation 324
684
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Department Overview
Budget Units
Budget Unit Program 2023 Proposed Budget
Parks and Recreation $ 2,305,011
100-60-601 Recreation Administration $ 1,704,745
100-60-636 Library Services $ 600,266
Business and Community Services $ 1,542,217
100-61-602 Administration $ 642,068
100-61-605 Cultural Events $ 493,143
100-61-630 Facilities $ 407,006
Recreation and Education $ 3,770,655
100-62-608 Administration $ 713,833
580-62-613 Youth Teen Recreation $ 1,504,209
100-62-623 Senior Center $ 1,076,295
100-62-639 Teen Programs $ 322,011
100-62-640 Neighborhood Events $ 154,307
Sports, Safety and Outdoor Recreation $ 5,692,057
100-63-612 Park Facilities $ 1,218,846
100-63-615 Administration $ 59,668
560-63-616 Blackberry Farm Golf Course $ 668,446
580-63-620 Outdoor Recreation $ 869,015
570-63-621 Sports Center Operations $ 2,876,082
Total $ 13,309,940
FY 2022-23 Proposed Budget Parks and Recreation 325
685
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Budget at a Glance
2023 Proposed Budget
Total Revenues $ 5,241,367
Total Expenditures $ 13,309,940
Fund Balance $ (971,602)
General Fund Costs $ 7,096,971
% Funded by General Fund 53.3%
Total Staffing 29.5 FTE
Organization
Joanne Magrini, Director of Parks and Recreation
FY 2022-23 Proposed Budget Parks and Recreation 326
686
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Performance Measures
Goal: Create a positive, healthy and connected community.
Benefit: Cupertino has an exceptional system of parks and services that align with community values.
Performance Measure
FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Ongoing
Target
% of Parks and Recreation Department
customers surveyed who rate services
as good or excellent
98% 94% 91% 85%
% of programs maintaining minimum
registration 62% 46% 79% 80%
% Department's total cost recovery for
all (direct and indirect) costs 37% 39% 50% 40%
% change in participants* -16% -39% 117% +1%
# of new programs or events offered 89 37 4 50
*Increase due to more programs offered and partial reopening of services.
FY 2022-23 Proposed Budget Parks and Recreation 327
687
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Workload Indicators
Business and Community Services Division
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Number of reservations at Quinlan Center 273 8 94
Number of festival applications received 11 12 0
Recreation and Education Division
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Number of registrations 7,142 1,194 1,503
Number of survey respondants 1,501 171 230
Number of Senior Center classes offered 129 100 91
Number of Senior Center trips offered 19 0 0
Sports, Safety, and Outdoor Recreation Division
Workload Indicator FY 2020
July-June
FY 2021
July-June
FY 2022
July-Dec
Number of programs offered 332 888 517
Number of picnic reservations at BBF 227 9 76
Rounds of golf at BBF Golf Course 14,476 43,650 20,626
Sports Center Memberships 1,802 1,655 1,608
Proposed Budget
It is recommended that City Council approve a budget of $13,309,940 for the Parks and Recreation department.
This represents a decrease of $607,728 (-4.4%) from the FY 2021-22 Adopted Budget.
The decrease is due to a reduction in cost allocation expenses as a result of lower IT costs and fewer financial transactions in FY 2020-21. This decrease is offset by an increase in compensation and benefits due to a request for an additional Community Outreach Specialist.
FY 2022-23 Proposed Budget Parks and Recreation 328
688
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Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
42.8%
28.3%
17.3%
11.6%
Sports, Safety and Outdoor Recreation
Recreation and Education
Parks and Recreation
Business and Community Services
$13.8M
$8.28M
$13.9M
$13.3M
2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget FY 2022-23 Proposed Budget Parks and Recreation 329
689
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Use of Money and Property $ 562,335 $ 432,447 $ 878,500 $ 950,157 Charges for Services $ 4,821,021 $ 2,708,714 $ 4,071,395 $ 4,260,210 Miscellaneous Revenue $ (7,245) $ 1,250 $ 31,000 $ 31,000 Total Revenues $ 5,376,111 $ 3,142,411 $ 4,980,895 $ 5,241,367 Expenditures
Employee Compensation $ 3,954,752 $ 2,856,246 $ 4,481,811 $ 4,654,234 Employee Benefits $ 1,445,922 $ 1,233,077 $ 1,547,823 $ 1,652,215 Materials $ 475,640 $ 232,871 $ 764,765 $ 711,125
Contract Services $ 3,362,305 $ 1,845,424 $ 4,627,455 $ 4,497,330 Cost Allocation $ 4,527,709 $ 2,102,688 $ 2,243,403 $ 1,675,311 Special Projects $ 71,628 $ 9,432 $ 125,000 $ -
Contingencies $ - $ - $ 127,411 $ 119,725
Total Expenditures $ 13,837,956 $ 8,279,738 $ 13,917,668 $ 13,309,940 Fund Balance $ 266,437 $ 1,791,839 $ (1,242,062) $ (971,602) General Fund Costs $ 8,728,282 $ 6,929,168 $ 7,694,711 $ 7,096,971 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Parks and Recreation 330
690
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Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ADMINISTRATIVE ASSISTANT 1.95 0.90 0.90 0.90
ASST DIR RECREATION COMM SVCS 1.00 0.95 0.95 0.85
CASE MANAGER 2.00 0 0 0
COMMUNITY OUTREACH
SPECIALIST
0.70 0.70 0.70 2.00
DIRECTOR OF PARKS REC 0.95 0.95 0.95 0.95
FACILITY ATTENDANT 3.00 3.00 3.00 3.00
MANAGEMENT ANALYST 1.00 1.00 1.00 2.00
OFFICE ASSISTANT 2.00 2.00 2.00 2.00
RECREATION COORDINATOR 12.55 11.43 11.43 9.88
RECREATION COORDINATOR LTD
TERM
1.00 0 0 0
RECREATION MANAGER 0 0 0 1.90
RECREATION SUPERVISOR 4.00 3.95 3.95 2.00
SR OFFICE ASSISTANT 3.00 3.00 3.00 4.00
Total 33.15 27.88 27.88 29.48
FY 2022-23 Proposed Budget Parks and Recreation 331
691
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691 of 1613
Recreation Administration
Budget Unit 100-60-601
General Fund - Parks and Recreation - Recreation Administration Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 1,704,745
Fund Balance $ -
General Fund Costs $ 1,704,745
% Funded by General Fund 100.0%
Total Staffing 6.7 FTE
Program Overview
The Recreation Administration program provides overall department administration, project management, community outreach, support to the Parks and Recreation and Library Commissions, and administration of recreation management software.
Service Objectives
Provide overall department administration, budget control, contract support, policy development, administration of recreation management software, and employee development and evaluation.
Support the Planning and Public Works Departments in the development, renovation, and improvements of parks and open spaces.
Implementation of recommendations from the Parks and Recreation System Master Plan.
Monitor and facilitate partnerships in regards to Library and other community organizations.
Outreach to the community in conjunction with programs and the Parks and Recreation System Master Plan.
Promote partnerships with Cupertino Union School District, Fremont Union High School District, and De Anza College.
Proposed Budget
It is recommended that City Council approve a budget of $1,704,745 for the Recreation Administration program. This represents an increase of $252,489 (17.4%) from the FY 2021-22 Adopted Budget.
The increase in Employee Compensation and Benefits are due to the reorganization of staff within the Department and establishment of a Management Analyst and Community Outreach Specialist. This is partially offset by the removal of the budget for Special Projects, which was a one-time expense in FY 2021-22.
Revenues and Expenditures
FY 2022-23 Proposed Budget Parks and Recreation 332
692
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Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 609,735 $ 559,798 $ 712,741 $ 972,240 Employee Benefits $ 211,543 $ 234,509 $ 316,133 $ 440,265 Materials $ 103,613 $ 38,274 $ 209,446 $ 209,269
Contract Services $ 62,355 $ 40,307 $ 80,805 $ 75,843
Cost Allocation $ 27,563 $ - $ - $ -
Special Projects $ - $ - $ 124,000 $ -
Contingencies $ - $ - $ 9,131 $ 7,128
Total Expenditures $ 1,014,809 $ 872,888 $ 1,452,256 $ 1,704,745 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 1,014,809 $ 872,887 $ 1,452,256 $ 1,704,745 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020
Actual
2021
Actual
2022 Adopted
Budget
2023 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.95 0.90 0.90 0.90
ASST DIR RECREATION COMM
SVCS
1.00 0.95 0.95 0.85
COMMUNITY OUTREACH
SPECIALIST
0.70 0.70 0.70 2.00
DIRECTOR OF PARKS REC 0.95 0.95 0.95 0.95
MANAGEMENT ANALYST 1.00 1.00 1.00 2.00
Total 4.60 4.50 4.50 6.70
Staff time has increased based on the reallocation and reclassification of a Recreation Coordinator position to a Management Analyst and addition of a Community Outreach Specialist.
FY 2022-23 Proposed Budget Parks and Recreation 333
693
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693 of 1613
Library Services
Budget Unit 100-60-636
General Fund - Parks and Recreation - Library Services
Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 600,266
Fund Balance $ -
General Fund Costs $ 600,266
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
This budget augments the existing library service currently provided to our community through the Santa Clara County (SCC) Library Joint Powers Authority.
Service Objectives
Provide increased library service for our constituents through support of 12 additional operational hours per week.
Explore partnerships with the SCC Library for recreation and community programs.
Proposed Budget
It is recommended that City Council approve a budget of $600,266 for the Library Services program. This represents a decrease of $5,262 (-0.9%) from the FY 2021-22 Adopted Budget.
This budget is relatively unchanged from last fiscal year.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Parks and Recreation 334
694
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694 of 1613
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ 117,000 $ - $ 371,738 $ 419,452
Cost Allocation $ 681,040 $ 198,415 $ 233,790 $ 180,814 Total Expenditures $ 798,040 $ 198,415 $ 605,528 $ 600,266 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 798,040 $ 198,415 $ 605,528 $ 600,266 Staffing
There is no staffing associated with this program.
FY 2022-23 Proposed Budget Parks and Recreation 335
695
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695 of 1613
Administration
Budget Unit 100-61-602
General Fund - Business and Community Services - Administration Budget at a Glance
2023 Proposed Budget
Total Revenues $ -
Total Expenditures $ 642,068
Fund Balance $ -
General Fund Costs $ 642,068
% Funded by General Fund 100.0%
Total Staffing 3.4 FTE
Program Overview
The Business Division supports department programs and services through the provision of customer service and analytical support, development, and administration of policies. The division is also responsible for the department's community outreach programs, including community festivals and City events at a variety of parks. This division also manages Quinlan Community Center (QCC) and Community Hall, as well as facility and park picnic rentals.
Service Objectives
Provide first-rate customer service through the implementation of consistent policies, procedures, and performance standards.
Administer recreation soNware system for customer registration, memberships, point-of-sale, and facility rentals.
Collect and analyze data from customer satisfaction surveys and program and revenue reports to improve programs and services.
Increase participation at City events including 4th of July, Big Bunny 5k and Kids Fun Run, Summer Concerts, Movies in the Park, Shakespeare in the Park, and the Tree Lighting Ceremony.
Issue parks and facilities permits for individual customers as well as community festivals and events that promote our diverse culture and connected community.
Maintain a positive relationship with neighborhoods adjacent to our facilities and parks.
Proposed Budget
It is recommended that City Council approve a budget of $642,068 for the Administration program. This represents a decrease of $80,069 (-11.1%) from the FY 2021-22 Adopted Budget.
The decrease is mainly due to reductions in Cost Allocations and Employee Compensation and Benefits.
Revenues and Expenditures
FY 2022-23 Proposed Budget Parks and Recreation 336
696
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696 of 1613
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 336,728 $ 308,484 $ 309,384 $ 280,090 Employee Benefits $ 176,722 $ 173,798 $ 183,164 $ 172,255 Materials $ 1,159 $ 476 $ 2,315 $ 2,440
Cost Allocation $ 147,895 $ 254,093 $ 227,216 $ 187,222 Contingencies $ - $ - $ 58 $ 61
Total Expenditures $ 662,504 $ 736,851 $ 722,137 $ 642,068 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 662,503 $ 736,851 $ 722,137 $ 642,068 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget ADMINISTRATIVE ASSISTANT 1.00 0 0 0
OFFICE ASSISTANT 1.00 1.00 1.00 1.00
RECREATION COORDINATOR 0.50 0.35 0.35 0.35
RECREATION SUPERVISOR 0.50 0.40 0.20 0
SR OFFICE ASSISTANT 2.00 2.00 2.00 2.00
Total 5.00 3.75 3.55 3.35
Staff time is being reallocated to better reflect actual time spent in this program.
FY 2022-23 Proposed Budget Parks and Recreation 337
697
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Cultural Events
Budget Unit 100-61-605
General Fund - Business and Community Services - Cultural Events Budget at a Glance
2023 Proposed Budget
Total Revenues $ 31,000
Total Expenditures $ 493,143
Fund Balance $ -
General Fund Costs $ 462,143
% Funded by General Fund 93.7%
Total Staffing 0.9 FTE
Program Overview
The Business and Community Service Division's events program produces the City's special events including 4th of July festivities and Big Bunny 5K, and those hosted at Memorial Park and Quinlan Community Center including the Summer Concert Series, Movies in the Park, Shakespeare in the Park, and Tree Lighting. This staff also serves as liaison and issues permits for community festivals at Memorial Park including the Cherry Blossom Festival, World Journal Festival, Kids 'N Fun Festival, Rotary Fall Festival, Veteran's Day Memorial Ceremony, Diwali Festival, Bhubaneswar Sister City's India Heritage Fair, Dilli Haat, Holi, Relay for Life, and more.
Service Objectives
Provide a summer concert series at Memorial Park.
Produce a summer movie series at Memorial Park.
Partner with the San Francisco Shakespeare Company to produce Free Shakespeare in the Park in Cupertino.
Organize and facilitate the 4th of July Independence Day celebration and fireworks show.
Organize and facilitate the Big Bunny 5K fun run.
Bring the community together with the annual Tree Lighting celebration.
Serve as liaison and issue special event permits to nonprofit organization event producers to ensure successful community and cultural festivals in Memorial Park.
Proposed Budget
It is recommended that City Council approve a budget of $493,143 for the Cultural Events program. This represents an increase of $60,006 (13.9%) from the FY 2021-22 Adopted Budget.
The increase in Employee Compensation and Benefits are due to the reorganization of the Department and reallocation of a Recreation Manager to match the responsibilities assigned to the position.
Revenues and Expenditures
FY 2022-23 Proposed Budget Parks and Recreation 338
698
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698 of 1613
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Miscellaneous Revenue $ (8,595) $ - $ 31,000 $ 31,000
Total Revenues $ (8,595) $ - $ 31,000 $ 31,000
Expenditures
Employee Compensation $ 77,563 $ 47,926 $ 88,433 $ 130,441 Employee Benefits $ 29,605 $ 28,554 $ 31,624 $ 47,977
Materials $ 18,199 $ 17,436 $ 34,737 $ 36,058
Contract Services $ 122,202 $ 8,265 $ 219,004 $ 217,784 Cost Allocation $ 43,037 $ 58,947 $ 52,995 $ 54,537
Contingencies $ - $ - $ 6,344 $ 6,346
Total Expenditures $ 290,606 $ 161,128 $ 433,137 $ 493,143 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 299,202 $ 161,129 $ 402,137 $ 462,143 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget RECREATION COORDINATOR 0.50 0.50 0.50 0.65
RECREATION MANAGER 0 0 0 0.25
Total 0.50 0.50 0.50 0.90
Staff time is being reallocated to better reflect actual time spent in this program.
FY 2022-23 Proposed Budget Parks and Recreation 339
699
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Facilities
Budget Unit 100-61-630
General Fund - Business and Community Services - Facilities Budget at a Glance
2023 Proposed Budget
Total Revenues $ 203,660
Total Expenditures $ 407,006
Fund Balance $ -
General Fund Costs $ 203,346
% Funded by General Fund 50.0%
Total Staffing 2.3 FTE
Program Overview
Community Hall provides space for City Council meetings and various Commission meetings, as well as facility rental space available for a variety of activities including business meetings, community events, and Cupertino Library programs. The Quinlan Community Center houses the administrative office of the Parks and Recreation Department and serves as facility space for rentals and a variety of recreational, social, and community activities.
Service Objectives
Provide a rental facility for community meetings, business functions, social events, and other similar activities.
Provide a facility for City Channel programming, and City Council, Planning Commission, Parks and Recreation Commission and other City meetings.
Offer in-person and online registration for recreation programs.
Schedule facility space for contractual and staff-run classes and camps.
House the Cupertino Historical Society.
Serve as an Emergency Operations Shelter in case of disasters.
Proposed Budget
It is recommended that City Council approve a budget of $407,006 for the Facilities program. This represents an increase of $40,113 (10.9%) from the FY 2021-22 Adopted Budget.
The increase in Employee Compensation and Benefits are due to the reorganization of the Department and reclassification of the Recreation Supervisor to Recreation Manager to match the increase in responsibilities and duties assigned to the position.
Revenues and Expenditures
FY 2022-23 Proposed Budget Parks and Recreation 340
700
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700 of 1613
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Use of Money and Property $ 118,874 $ 12,061 $ 115,000 $ 145,000 Charges for Services $ 404,343 $ 37,055 $ 53,395 $ 58,660 Total Revenues $ 523,217 $ 49,116 $ 168,395 $ 203,660
Expenditures
Employee Compensation $ 255,932 $ 185,667 $ 237,255 $ 263,790 Employee Benefits $ 89,831 $ 90,201 $ 93,053 $ 103,297
Materials $ 13,486 $ 9,722 $ 28,121 $ 29,105
Contract Services $ 19,164 $ 210 $ 7,572 $ 9,840
Cost Allocation $ 58,657 $ - $ - $ -
Contingencies $ - $ - $ 892 $ 974
Total Expenditures $ 437,070 $ 285,800 $ 366,893 $ 407,006 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (86,147) $ 236,685 $ 198,498 $ 203,346 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget FACILITY ATTENDANT 2.00 2.00 2.00 2.00
RECREATION MANAGER 0 0 0 0.25
RECREATION SUPERVISOR 0.50 0.50 0.20 0
Total 2.50 2.50 2.20 2.25
Staff time is being reallocated to better reflect actual time spent in this program.
FY 2022-23 Proposed Budget Parks and Recreation 341
701
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701 of 1613
Administration
Budget Unit 100-62-608
General Fund - Recreation and Education - Administration Budget at a Glance
2023 Proposed Budget
Total Revenues $ 12,500
Total Expenditures $ 713,833
Fund Balance $ -
General Fund Costs $ 701,333
% Funded by General Fund 98.2%
Total Staffing 3.1 FTE
Program Overview
This program includes administrative support of senior programs offered at the Senior Center. Administrative duties support the facility and senior programs that focus on enhancing a healthy lifestyle through quality education, recreation, travel, socials, community resources, volunteer opportunities, and facility rentals.
Service Objectives
Provide management and supervision of all programs, activities, personnel, and facilities within the senior services division.
Establish program goals and priorities.
Ensure operational hours accommodate community desires.
Provide first-rate customer service and manage customer registration, memberships, point-of-sale, and facility rentals at the Senior Center.
Proposed Budget
It is recommended that City Council approve a budget of $713,833 for the Administration program. This represents a decrease of $8,326 (-1.2%) from the FY 2021-22 Adopted Budget.
This budget is relatively unchanged from last fiscal year.
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
FY 2022-23 Proposed Budget Parks and Recreation 342
702
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702 of 1613
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Use of Money and Property $ 17,816 $ (320) $ 12,500 $ 12,500 Miscellaneous Revenue $ - $ 1,125 $ - $ -
Total Revenues $ 17,816 $ 805 $ 12,500 $ 12,500
Expenditures
Employee Compensation $ 329,984 $ 264,940 $ 360,823 $ 369,426 Employee Benefits $ 135,429 $ 122,697 $ 148,586 $ 155,590 Materials $ 7,627 $ 4,457 $ 16,039 $ 14,813
Contract Services $ 431 $ 1,074 $ 3,640 $ 3,640
Cost Allocation $ 311,932 $ 240,121 $ 192,579 $ 169,903 Contingencies $ - $ - $ 492 $ 461
Total Expenditures $ 785,403 $ 633,289 $ 722,159 $ 713,833 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 767,588 $ 632,484 $ 709,659 $ 701,333 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget CASE MANAGER 0.10 0 0 0
FACILITY ATTENDANT 1.00 1.00 1.00 1.00
RECREATION COORDINATOR 0.30 0.30 0.30 0.30
RECREATION SUPERVISOR 0.95 0.75 0.75 0.75
SR OFFICE ASSISTANT 1.00 1.00 1.00 1.00
Total 3.35 3.05 3.05 3.05
There are no changes to the current level of staffing.
FY 2022-23 Proposed Budget Parks and Recreation 343
703
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703 of 1613
Youth Teen Recreation
Budget Unit 580-62-613
Recreation Program - Recreation and Education - Youth Teen Recreation Budget at a Glance
2023 Proposed Budget
Total Revenues $ 674,550
Total Expenditures $ 1,504,209
Fund Balance $ (829,659)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 1.7 FTE
Program Overview
This program encompasses fee-based youth and teen programs such as academic and enrichment classes, STEAM programming, recreational camps, preschool, and special events, enrichment classes for adults, and special interest programming.
Service Objectives
Provide a preschool program, summer camps, and an extensive variety of contract classes for youth, teens, and adults, while collaborating with the Cupertino Union School District and Fremont Union High School District on select program offerings.
Promote programs through social media to increase community awareness and interest in programs.
Increase the number of youth and teen Science, Technology, Engineering, Art, and Math (STEAM) programs offered.
Expand all-day summer camp offerings to meet daycare needs of working families.
Provide family-oriented programs designed to increase community engagement.
Provide safe, fun, life-long learning activities that promote the foundations of self-confidence, skill development, and personal growth.
Provide programs that enhance cultural awareness to youth and teens.
Proposed Budget
It is recommended that City Council approve a budget of $1,504,209 for the Youth Teen Recreation program.
This represents a decrease of $324,636 (-17.8%) from the FY 2021-22 Adopted Budget.
The decrease is due to reductions in Employee Compensation and Benefits, as a result of the reorganization of the Department and reallocation of staff time from this program. The decrease is also includes a reduction in Contact Services expenses, due to the adjustment in programs offered, and reduction in Cost Allocation expenses.
Revenues and Expenditures
FY 2022-23 Proposed Budget Parks and Recreation 344
704
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704 of 1613
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Charges for Services $ 1,195,694 $ 351,184 $ 742,000 $ 674,550 Total Revenues $ 1,195,694 $ 351,184 $ 742,000 $ 674,550 Expenditures
Employee Compensation $ 332,247 $ 131,866 $ 470,409 $ 394,702 Employee Benefits $ 97,533 $ 59,981 $ 102,897 $ 101,525 Materials $ 15,732 $ 1,252 $ 31,437 $ 33,396
Contract Services $ 695,551 $ 172,604 $ 918,285 $ 790,249 Cost Allocation $ 1,068,022 $ 194,033 $ 282,074 $ 163,746 Contingencies $ - $ - $ 23,743 $ 20,591
Total Expenditures $ 2,209,085 $ 559,736 $ 1,828,845 $ 1,504,209 Fund Balance $ (1,013,391) $ (208,552) $ (1,086,845) $ (829,659) General Fund Costs $ - $ - $ - $ -
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget RECREATION COORDINATOR 1.35 1.35 1.35 1.50
RECREATION MANAGER 0 0 0 0.20
RECREATION SUPERVISOR 0.25 0.25 0.35 0
Total 1.60 1.60 1.70 1.70
Staff time is being reallocated to better reflect actual time spent in this program.
FY 2022-23 Proposed Budget Parks and Recreation 345
705
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705 of 1613
Senior Center
Budget Unit 100-62-623
General Fund - Recreation and Education - Senior Center Budget at a Glance
2023 Proposed Budget
Total Revenues $ 154,500
Total Expenditures $ 1,076,295
Fund Balance $ -
General Fund Costs $ 921,795
% Funded by General Fund 85.6%
Total Staffing 3.0 FTE
Program Overview
This program includes the coordination and delivery of program services for seniors at the Senior Center. Staff coordinates a well-maintained Senior Center for adults age 50+ including senior adult recreation programs such as enrichment classes, educational presentations, group trips and tours, and social events. In addition, the Senior Center team leverages members to support programs and services through volunteer opportunities.
Staff provides referrals for resources available to seniors.
Service Objectives
Enhance partnerships with the Santa Clara County Library District, De Anza College, and other local nonprofit agencies.
Provide appreciation events for senior volunteers who support the Parks and Recreation Department throughout the year.
Offer fitness and enrichment courses, educational presentations, group trips and tours, and socialization opportunities to adults age 50+.
Provide volunteer service opportunities for adults age 50+.
Provide a senior-focused annual health fair and senior resource referrals.
Proposed Budget
It is recommended that City Council approve a budget of $1,076,295 for the Senior Center program. This represents a decrease of $41,356 (-3.7%) from the FY 2021-22 Adopted Budget.
The overall decrease is due to an increase in contract costs, offset by Cost Allocation expenses. With the recent relaxation of prior pandemic-based restrictions, the Senior Center has reopened and is offering more programs and classes.
Revenues and Expenditures
FY 2022-23 Proposed Budget Parks and Recreation 346
706
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706 of 1613
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Proposed Budget Revenues
Use of Money and Property $ 252 $ - $ - $ -
Charges for Services $ 361,427 $ 38,081 $ 164,000 $ 154,500 Miscellaneous Revenue $ 1,350 $ 125 $ - $ -
Total Revenues $ 363,029 $ 38,206 $ 164,000 $ 154,500
Expenditures
Employee Compensation $ 470,472 $ 332,944 $ 418,283 $ 414,263 Employee Benefits $ 177,296 $ 160,139 $ 155,952 $ 158,309 Materials $ 85,075 $ 5,718 $ 116,815 $ 116,673
Contract Services $ 199,364 $ (86,272) $ 126,280 $ 151,492 Cost Allocation $ 357,244 $ 356,195 $ 294,244 $ 228,854 Contingencies $ - $ - $ 6,077 $ 6,704
Total Expenditures $ 1,289,451 $ 768,724 $ 1,117,651 $ 1,076,295 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 926,421 $ 730,517 $ 953,651 $ 921,795 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.