CC 03-07-2023
Special Meeting #2
FY 2022-23 Mid-Year
Financial Report
Presentation
March 7, 2023
Fiscal Year 2022-23
Mid-Year Financial Report
CC 03-07-2023 Special Meeting Item No. 2
Budget Reporting Cycle
FY 2022-23 Mid -Year Amended Budget
FY 2022-23 Mid -Year General Fund Update
Recommended Adjustments
Transparency and Engagement
Recommendations and Next Steps
Agenda
2 Budget Reporting Cycle
3 Proposed
Budget (May)
Final Budget
(June)
First Quarter
(November)
Mid-Year
(March)
Third Quarter
(May)
FY 2022-23 Mid-Year Amended
Budget
Fund
FY 2022-23
Adopted
Budget
Carryovers Encumbrances
Adjustments
Approved in 1st
and 2nd
Quarters
FY 2022-23
Amended
Budget as of
Dec. 31, 2022
General 95,167,779 23,785,988 5,041,683 3,223,350 127,218,800 Special Revenue 11,244,109 18,140,319 3,965,049 180,458 33,529,935 Debt Service 2,675,800 - - - 2,675,800
Capital Projects 3,633,600 22,285,752 3,688,943 650,000 30,258,295 Enterprise 9,003,331 1,154,594 118,032 140,426 10,416,383 Internal Service 8,862,706 550,315 466,368 922,454 10,801,843 Total All Funds $130,587,325 $65,916,968 $13,280,075 $5,116,688 $214,901,056 FY 2022-23 Appropriation Changes by Fund
Fund
FY 2022-23
Adopted
Budget
Carryovers
Adjustments
Approved in 1st
and 2nd
Quarters
FY 2022-23
Amended
Revenues as of
Dec. 31, 2022
General 94,661,388 38,699,046 802,962 134,163,396
Special Revenue 16,315,081 - - 16,315,081
Debt Service 2,675,800 - - 2,675,800
Capital Projects 2,500,000 4,931,904 500,000 7,931,904
Enterprise 6,181,392 - - 6,182,392
Internal Service 7,909,496 - 118,766 8,028,262
Total All Funds $130,244,157 $43,630,950 $1,421,728 $175,296,835 FY 2022-23 Revenue Changes by Fund
FY 2022-23 Mid-Year General Fund
Update
34%
44%
52%
33%
44%
49%
52%
39%
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
General Fund Revenues & Expenditures –
% Received/Spent as of Mid-Year
Revenues Expenditures
Revenue Category Mid-Year 2022 Mid-Year 2023 Variance ($) Variance (%) 05 - Sales tax 25,058,489 18,112,541 (6,945,948) -28%
10 - Property tax 8,331,800 8,810,200 478,400 6%
15 - Transient occupancy 1,336,855 2,818,190 1,481,335 111% 20 - Utility tax 1,276,177 1,633,462 357,286 28%
25 - Franchise fees 684,498 758,501 74,002 11%
30 - Other taxes 1,056,602 604,802 (451,800) -43%
35 - Licenses and permits 2,188,177 2,151,138 (37,039) -2% 40 - Use of money and property 925,576 1,147,839 222,263 24% 45 - Intergovernmental revenue 3,433,481 1,183,361 (2,250,120) -66% 50 - Charges for services 6,905,845 5,317,399 (1,588,446) -23% 55 - Fines and forfeitures 105,865 116,311 10,446 10%
60 – Miscellaneous 986,591 1,112,371 125,779 13%
65 - Transfers in 4,862,387 61,140 (4,801,247) -99%
70 - Other financing sources 52,224 - (52,224) -100%
Total General Fund Revenues $57,204,568 $43,827,254 $(13,377,314) -23% General Fund Revenues – Mid-Year FY22 vs. FY23
Expenditure Category Mid-Year 2022 Mid-Year 2023 Variance ($) Variance (%) 05 - Employee compensation 10,018,381 11,688,616 1,670,234 17% 10 - Employee benefits 4,701,573 5,368,895 667,321 14%
15 - Materials 1,822,909 2,487,430 664,521 36%
20 - Contract services 10,593,497 11,896,017 1,302,520 12% 25 - Cost allocation 5,974,031 5,192,981 (781,051) -13% 30 - Capital outlays 32,700 7,750 (24,950) -76%
31 - Special projects 953,489 1,289,725 336,236 35%
35 - Contingencies 2,440 277 (2,163) -89%
45 - Transfer out 16,099,371 11,996,300 (4,103,071) -25% 50 - Other financing uses 336,005 178,047 (157,958) -47% Total General Fund Expenditures $50,534,396 $50,106,038 $(428,359) -1% General Fund Expenditures – Mid-Year FY22 vs. FY23
$0.4 $0.4 $0.4 $0.4 $0.4
$19.9 $18.8
$24.2
$18.8 $18.8$19.1
$34.1 $34.1 $34.1 $34.1
$4.9 $5.0
$3.0
$5.0 $5.0
$52.4 $51.6
$48.3
$63.2 $63.1
Actual
2020-21
Year End Projection
2021-22
Adopted Budget
2022-23
1st Quarter Year End
Projection
2022-23
Mid-Year Year End
Projection
2022-23
General Fund Fund Balance ($ in millions)
Non Spendable Restricted Committed Assigned Unassigned
Total
$110.0
Total
$110.1
Total
$121.6
Total
$121.5
Total
$96.9
• Staff is not recommending any adjustments to
appropriations or revenues at mid-year
• The City will continue to monitor its revenue and
expenditure trends
Budget Adjustments
• Addition of Limited-Term Special Project Executive
• Revision of the Assistant Director of Community
Development/Building Official classification to
separate the classifications
• Revision of standby pay eligibility from IT Assistant to Network Specialist
Staffing
• In the first quarter, $2,632.50 was used for
environmental consulting services related to a
Phase I environmental site assessment at 21801
Stevens Creek Boulevard
• Staff will continue to report on the use of this fund City Manager Discretionary Fund
• Special Projects
• Grants
• Capital Improvement Program (CIP)
• CDTFA Audit Update
Additional Information
Transparency and Engagement
cupertino.org/budget
FY 2022-23
• Third Quarter Report to Council May 2023
FY 2023-24
• Proposed Budget Study Session May 17, 2023
• Budget Adoption June 2023
Next Steps
1. Receive the City Manager’s Mid-Year Financial
Report for Fiscal Year 2022-23;
2. Adopt Resolution No. 23-XXX amending the
Unrepresented Employees’ Compensation
Program and Classification Plan; and
3. Approve a new Special Project Executive job
classification and separate the Assistant Director
of Community Development and Building Official
job classifications.
Recommendations
Questions?
CC 03-07-2023
#12
FY 2023-24 CIP Five-year
Plan
Presentation
March 7, 2023
City Council
FY 2023-24 CIP five-year plan
CC 03-07-2023 Item No. 12
Subject: Consider the Fiscal Year (FY) 2023-24 five-year plan for Capital Improvement Program (CIP).
Recommended Action: Receive presentation and provide
input on the proposed FY 2023-24 five-year plan for the CIP.
Tonight’s Action
• 27 active CIP projects, 10 waiting in the queue
• Only a few new projects – a modest proposal, due to:
• Limited staffing resources
• The need to complete existing projects
• Fiscal conservativism due to tax audit.
• Additional project managers are needed to address
existing and proposed projects (especially City Hall).
Synopsis
FY 23-24 CIP
Agenda
1. What is CIP?
2. Existing CIP Projects
3. CIP Goals, Priorities and Rankings
4. Proposed FY 23 – 24 CIP and 5-Year Plan
5. Next Steps
For more detail on the status of current CIP projects, refer to the City’s CIP dashboard:
https://gis.cupertino.org/webmap/cip/
CIP Dashboard
Navigation: Cupertino.org > Public Works > City Construction Projects (CIP) (on the left sidebar) > Interactive Dashboard
A Capital Improvement is a project that:
• Enhances the unit of property; or
• Restores or Prolongs the useful life of the unit of property; or • Adapts the unit of property to a new or different use.
Capital Improvements are added as a City’s asset.
Capital Improvement projects differ from Maintenance projects by:
(1) Design Professionals are needed; and/or
(2) The budget exceeds +/- $60,000.
What is a Capital Improvement Programs (CIP) Project?
Existing CIP Projects
CIP Accomplishments
FY22-23 COMPLETED PROJECTS:
1. Annual Playground Replacement (Multi-
year) – Creekside Tot Lot completed
2. Memorial Park – Pond Repurposing
3. Sports Center Community Needs Analysis
4. Tree Inventory - Stevens Creek Corridor
5. Bicycle Blvd Interim Improvements, Ph. 2
6. Homestead/De Anza – Design &
Construction
7. Regnart Creek Trail Fencing
8. Stelling and Alves Crosswalk Installation
9. Retaining Wall Repair - Cordova Road
10. Sidewalk Improvements - Orange & Byrne
10 Completed projects!
*Green = Parks *Blue = Transportation *Red = Streets & Infrastructure *Orange = Facilities FY22-23 OTHER ACCOMPLISHMENTS:
1. Regnart Creek Trail Ribbon Cutting
2. Update of the Building Condition
Assessment Report – in process
3. Working on CIP Tools (internal
standardization platform)
4. Designs for SCB PH 2 and McClellan Ph 3
bikeways are completed.
5. Installation of new Fire Control Panel at the
Sports Center
CIP Updates: Facilities projects
Citywide Building Condition Assessment Implementation ADA Improvements (Annually funded)
City Hall Annex
City Hall Improvements
City-Owned Properties Analysis (Stocklmeir, Byrne, Blesch) Electric Vehicle Parking Expansion
Interim City Hall
Library Expansion Project (landscaping)
Multi-Site Sustainable Infrastructure Upgrade
$14.4M City Funding
$425K External Funding
$14.8M total
CIP Updates: Parks projects
Park Amenity Improvements (Year 4 of 5)
Community Garden - Wilson Park
Full-sized Outdoor Basketball Court -Wilson Park
All Inclusive Play Area & Adult-Assistive Bathroom Facility at Jollyman Park Annual Playground Replacement (Year 4 of 5)
Blackberry Farm Golf Renovation / Alternative Use Study Blackberry Farm Pool Improvements
Lawrence-Mitty Park and Trail Plan
Memorial Park - Specific Plan Design
Memorial Park - Amphitheater Improvements
Stevens Creek Corridor Park Chain Master Plan
• McClellan Ranch Preserve Parking Lot West $12.3M City Funding $2.7M External Funding
$15M total
CIP Updates: Streets & Infrastructure projects
City Bridge Maintenance Repairs
Pumpkin and Fiesta Storm Drain Project (all phases)
Regnart Road Improvements (all phases)
Street Light Installation - Annual Infill (Annually funded) City Lighting LED Transition Assessment
City Lighting LED improvements
$4.9M City Funding
$1.3M External Funding
$6.2M total
Bicycle Boulevard Interim Improvements, Phase 3
Civic Center Parking Improvements
De Anza Boulevard Buffered Bike Lanes
School Walk Audit Implementation
Stevens Creek Blvd CL IV Bikeway - Bandley Dr. Signal Stevens Creek Blvd CL IV Bikeway - Phase 2 (design & construction) Traffic Calming
I-280 Trail - Central & East Segment
I-280 Trail - West Segment
McClellan Road Separated Bike Corridor, Phase 3
McClellan Road Separated Bike Corridor, Phase 4 (Byrne Ave to Imperial Ave)
$5.6M City Funding
$8.4M External Funding
$14M total
CIP Updates: Transportation projects
Active CIP Projects
27 active projects: 9 Parks & Rec, 9 Bike/Ped, 5 Streets & Infrastructure, and 4 Facilities
1. All-Inclusive Play Area & Adult Assistive Bathroom
Facility (External Funding)
2. Annual Playground Replacement (Multi-year)
3. Blackberry Farm Golf Renovation / Alternative Use
Study
4. Blackberry Farm Pool Improvements
5. Citywide [Satellite] Community Garden (Wilson Park)
6. Full-sized Outdoor Basketball Court (Wilson Park)
(External Funding)
7. Lawrence-Mitty Park and Trail Plan
8. Memorial Park – Specific Plan Design
9. Park Amenity Improvements (Multi-year)
10. Bicycle Blvd Interim Improvements, Ph. 3
11. Civic Center Parking Analysis
12. De Anza Boulevard Buffered Bike Lanes
13. I-280 Trail – East & Central Segments (External
Funding)
14. McClellan Rd Sep. Bike Corridor, Ph. 3 (External Funding)
15. School Walk Audit Implementation (External Funding)
16. Stevens Creek Blvd Class IV Bikeway Ph. 2 – Design & Construction
17. Stevens Creek Blvd Class IV Bikeway Ph. 2 : Bandley Dr.
Signal Upgrades (External Funding)
18. Traffic Calming
19. City Bridge Maintenance Repairs
20. City Lighting LED Transition Assessment
21. Pumpkin and Fiesta Storm Drain project, Phase 1 and 2
22. Regnart Road Improvements, Phase 1
23. Street Light Installation - Annual Infill (Multi-year)
24. ADA Improvements (Multi-year)
25. City Hall Improvements (Programming and Feasibility)
26. City Hall Annex (10455 Torre Avenue Improvements)
27. Citywide Building Condition Assessment & Implementation *Green = Parks *Blue = Transportation *Red = Streets & Infrastructure *Orange = Facilities Existing CIP Projects’ Funding – Totals
$50M total - funded CIP projects
27 active and 10 in the Queue
# PROJECT TYPE – EXISTING PROJECTS City Funding External Funding Total Funding 9 FACILITIES $14,387,519 $425,551 $14,813,070
11 PARKS $12,262,830 $2,687,549 $14,950,379
6 STREETS & INFRASTRUCTURE $4,895,448 $1,287,448 $6,182,896 10 TRANSPORTATION $5,584,831 $8,410,521 $13,995,352
36 TOTALS $37,130,628 $12,811,069 $49,941,697
CIP Goals, Priorities, and Rankings
What is the process?
• PROPOSAL DEVELOPED/STAFF & CMO REVIEWS
FY23-28 CIP program proposal developed in January 2023, following input from Staff and Commissions. Staff reviews proposal with Senior Leadership and the City Manager. • COMMISSIONS (February)
FY23-28 CIP proposal presented at Bike/Ped, Parks & Rec, and Planning Commission meetings in February and March 2023
• COUNCIL (March & April)
FY23-28 CIP proposal presented at City Council meetings in March and April 2023 • FINAL/BUDGET PROCESS (May & June)
FY23-28 CIP proposal included in City’s Budget approval in May and June 2023.
How do we prioritize/rank the CIP projects?
Repair or upgrading necessary to protect public Health and Safety take highest priority.
Council Priorities, Commission suggestions and Community input.
Subsequent phases of existing projects.
Master Plans and General Plan have many stated goals and policies that affect the generation of CIP projects.
Fiscally responsible use of City resources, including staff time and funding. If projects have secured (or could secure) outside funding, that is also considered.
Proposed FY23–24 CIP and 5-Year Plan
Proposed FY 23-24: Stevens Creek Blvd./Calabazas
Creek Storm Drain Repair
Investigate, Design, and Replace existing
dilapidated 48” CMP storm drain line
with new RCP pipe at Stevens Creek Blvd
and Finch Avenue.
The storm drain pipes at this location
have corroded, and need to be
replaced before storm water scours the
surrounding soils and creates further
problems such undermining of the
Calabazas Creek Culvert or creating a
sinkhole in Stevens Creek Blvd.
$420,000 City Funding
$0 External Funding
$420,000 Total
Proposed FY 23-24: Fiber Expansion – City Hall Annex
Expand fiber network to include City Hall
Annex, 10455 Torre Avenue, increasing
the efficiency and resilience of the EOC
facility.
The aim is to conduct this work
concurrent with the City Hall Annex
project, and prior to opening of this
facility.
$320,000 City Funding
$0 External Funding
$320,000 Total
Proposed FY 23-24: Bollinger Road Bike Improvements
The 2020 Bollinger Road Corridor Study was
a safety and operational study of Bollinger
Road from De Anza Blvd. to Lawrence
Expressway. It is a collaboration between
the City of Cupertino and City of San José.
The study identifies improvements that will
enhance pedestrian, bicycle, motor-
vehicle, and transit operations and safety.
The proposed project will conduct
community outreach and initiate the
required topographic surveys and traffic
analysis as a basis of evaluating the two
options resulting from the 2020 study. The
project will also complete preliminary
engineering and final design documents.
$200,000 City Funding FY23-24
$500,000 City Funding FY24-25
$3,300,000 City Funding FY26-27*
$4,000,000 Total
*Future years indicated without escalation
Proposed FY 23-24: Civic Center Microgrid
The proposed project will install canopies
with solar mounts in the Civic Center
parking lots and install
• an extensive system of solar
photovoltaic panels,
• step down transformer, and
• solar charged batteries with
connections to all three Civic Center
buildings.
The project will install and launch
microgrid software that allows City staff
to operate the microgrid as it switches
between grid power, solar generation
use, and battery backup power.
$150,000 City Funding FY23-24
$252,460 External Funding Ph. 1
$72,100 City Funding FY24-25
$577,640 External Funding Ph. 2
$908,000 Total
Proposed FY 23-24: San Tomas Aquino/Saratoga Creek
Trail Extension, Feasibility Study
Feasibility Study to determine the feasibility of,
and evaluate potential alignments and costs
for, bicycle and pedestrian connection
access to the north end of Lawrence-Mitty
Park.
Extending the existing Saratoga Creek Trail
beyond the new City park requires the
engagement of the City of Santa Clara, City
of San Jose, County of Santa Clara, Caltrans,
& Santa Clara Valley Water district.
Such a trail extension would be “Reach 5” of
the 1999 San Tomas Aquino/Saratoga Creek
Trail Master Plan (Santa Clara County).
$150,000 City Funding
$0 External Funding
$150,000 Total
Proposed FY 23-24: Stevens Creek Bridge Repair
Repairs to the bridge supports to include
countermeasures to scouring (undermining)
of the support bases.
This project will perform modifications to
create a firm structural footing for the
bridge’s support foundations. The condition
of these support foundations has been noted
in recent biennial bridge inspection reports
and the repairs are recommended by
Caltrans. The repair work is funded by the
FHWA Highway Bridge Program for 88.53% of
the design and construction costs. $98,642 City Funding $761,358 External Funding
$860,000 Total
Additional Funding FY 23-24: City Hall Improvements
Program, plan and build facility
improvements at the existing City Hall
building site. The scope of work will include
programming, planning, design, and
construction. The Emergency Operations
Center (EOC) moves to another facility, but
this facility is planned as a “Risk Category IV”
Essential Services facility as part of the
structural system upgrades.
$500,000 Current City Funding
$1,000,000 City Funding FY23-24
$3,000,000 City Funding FY24-25
$67,500,000 City Funding FY26-27*
$72,000,000 Total
*Future years indicated without escalation
Additional Funding FY 23-24: Building Condition
Assessment Improvements
Establish multi-year funding (for the next five
years) to implement recommendations from
the 2017/18 “Comprehensive Facility
Condition and Use Assessment Report” that
were identified as priorities. Current efforts are
underway to update the 2017/18 report, to
maximizing it as an effective reference.
Priority projects for FY23-24 include:
• Alarm system upgrades at 5 buildings
• Locker room repairs at Sports Center
$1,000,000 Current City Funding
$2,000,000 City Funding FY23-24
$5,000,000 City Funding FY24-28
$8,000,000 Total**
**Staff proposes to convert this to a Multi-Year project
Proposed FY 23-24 CIP Projects’ Funding – Totals
$5.9M total – Proposed FY23-24 CIP projects
PROJECT TYPE – EXISTING PROJECTS New City Funding Added City Funding External Funding Total Funding
FACILITIES $150,000 $3,100,000 $102,460 $3,352,460
PARKS $0 $500,000 $0 $500,000
STREETS & INFRASTRUCTURE $838,642 $75,000 $761,358 $1,675,000 TRANSPORTATION $350,000 $0 $0 $350,000
TOTALS $1,338,642 $3,675,000 $863,818 $5,877,460
Total, City Funding only: $5,013,642
FY23-24 5-year CIP
Proposed New Project Funding
FY23-24 5-year CIP
Proposed Additional Project Funding
*Green = Parks *Blue = Transportation *Red = Streets & Infrastructure *Orange = Facilities Summary/Highlights
• The FY23-24 proposal adds six new projects, requesting $1,338,642 of City Funding • The FY23-24 proposal requests additional funding for two projects (City Hall and Bldg.
Condition Assessment Implementation), and four Multi-Year projects totaling $3,675,000 of City Funding
• The 5-year plan includes significant projects at Memorial Park, City Hall, Carmen Road Bridge, and others.
• CIP requests the additional staffing to address currently unstaffed projects as well as new significant projects such as City Hall.
• Lawrence Mitty Park and Trail
• Memorial Park Revitalization
• Jollyman AIPG
• I-280 Trail
• City Hall Annex
• Stevens Creek Blvd Class IV
bikeways (Phase 2)
• McClellan Road Separated
Bikeway (Phase 3)
• The City presently has $50M of CIP projects. Significant projects underway include Next Steps
• PROPOSAL DEVELOPED/STAFF & CMO REVIEWS
FY23-28 CIP program proposal developed in January 2023, following input from Staff and Commissions. Staff reviews proposal with Senior Leadership and the City Manager. • COMMISSIONS (February)
FY23-28 CIP proposal presented at Bike/Ped, Parks & Rec, and Planning Commission meetings in February and March 2023.
• COUNCIL (March & April)
FY23-28 CIP proposal presented at City Council meetings in March and April 2023 • FINAL/BUDGET PROCESS (May & June)
FY23-28 CIP proposal included in City’s Budget approval in May and June 2023.
Thank You!