CC 06-06-2023
#11
Storm Drain Fees
Presentation
June 6, 2023
Renewal of Stormwater Parcel Fees
for FY23-24
CC 06-06-2023 Item No. 11
• 2019 Clean Water and Storm Protection Fee
• More varied rates for land area and land use
• $44.42 for typical SFD, com. = $40.38/0.1 acre
• 1992 Storm Drainage Charge
• $12/single family parcel;
• $144/acre for com./apts./industrial parcels;
• $36/acre for unimproved parcel
Two Stormwater Fees support compliance with
Municipal Regional Permit and maintenance of
City storm drainage infrastructure
2 • Both fees appear on property tax bills:
3 Funded Activities
4 4
5 Creek Cleanups
5 6
6 • Rain gardens, landscape conversion, etc.
• $12,500 budget
• Partner with Valley Water
• Permeable pavement (driveways)
• $12,500 budget
• Recommend discontinuing
(low participation)
Rebates - Update
7 • Cost-share of 20% available for low-income owners
• Reduce budget from GF to = annual need
• Adjust re-certification period to every 4 years
• Allow an attestation protocol
Cost-Share Program
8 • Nonpoint Source Program expenses and revenues
were subjected to external audit for FY21-22 during
City’s usual audit schedule.
• An Agreed-Upon Procedures (AUP) audit specific to
the Nonpoint Source stormwater program was
established and is conducted annually.
Audit and Review
9 10
Increase recommended for FY23-24
FY 2022-23 FY 2023-24 (proposed)
Fund Balance (previous FY) $917,878 $369,464
Revenue 1992 Fee $375,569 $375,569
Revenue 2019 Fee $1,101,239 $1,101,239
3% increase to 2019 Fee $0 $33,037
General Fund Contribution $0 $188,900
Total Program Funding $2,394,686 $2,068,209
Program Expenses* $2,025,222 $2,068,209
Remaining Fund Balance at end of FY $369,464 $0
• New Municipal Regional Permit requires more staff
time.
• Programs minimized during COVID are back.
• Staffing allocations adjusted.
• Deferred assessment and maintenance work now
scheduled and planned.
Program Expenses
12 Reductions
• $38,560 in operating expense reductions
• Reduce cost-share budget from $14,000 to $2,000 to
cover rebate checks for new participants (frees up
$12,000 in General Fund).
• Purchase a remote-controlled pipe rover camera.
One-time expense of ~$131,000 will avoid future
service expenses to evaluate and respond to issues in
FY 23-24 and beyond. Estimated savings of $160,000
per year.
14 • 2019 Clean Water and Storm Protection Fee: +3%
15 1. Adopt Resolution No. 23-XXX approving the
renewal and collection of the 1992 storm drain
fee with no increase in rates for fiscal year 2023-
2024; and
2. Adopt Resolution No. 23-XXX approving the
renewal and collection of the 2019 Clean
Water and Storm Protection Fee with a 3%
increase in rates for fiscal year 2023-2024.
Tonight’s Recommended Actions
161616
3. Approve reduction of the annual budget
allocation for the cost-share program from
$14,000 to $2,000 to better fit the realistic need
for new applicants receiving 20% refunds in a
single year
4. Adjust the re-certification period to be four
years for all approved participants with an
attestation protocol to affirm continued cost-
share eligibility
Tonight’s Recommended Actions (cont.)
171717
3. Discontinue the $12,500 per year pervious
pavement rebate program for lack of
participation and use the funds for support
of required activities
Tonight’s Recommended Actions (cont.)
181818
Questions?
19 19
CC 06-06-2023
#12
Fiscal Year 2023-24
Budget Adoption
Presentation
June 6, 2023
Fiscal Year 2023- 24
Final Budget Adoption
CC 06-06 -2023 Item No. 1 3
Community Budget Outreach and
Survey
Proposed Budget Changes
Next Steps
Agenda
2 Community Budget Survey and
Outreach
3 Throughout April and May, City staff hosted a variety of budget outreach events to educate the community on budget related topics at local farmer's markets, Cupertino festivals, and in front of the Cupertino Library.
Community Budget Outreach
4 • Opened April 20, 2023
• Closed May 31, 2023 11:59 PM
• 1090 responses
• cupertino.org/BudgetSurvey
Community Budget Survey
5 1. You have 10 dots to allocate to the list of services that the City should reduce funding for. Indicate how many dots you would assign to each service based on your priorities. Reducing funding for a service may have consequences, such as
decreased quality or availability of that service.
2. You have 10 dots to allocate to the list of services that you would like the City to NOT reduce funding for. Please review the list and indicate how many dots you would assign to each service based on your priorities.
3. You have a maximum of 10 dots to decide what revenue- generating avenues you would want the City to pursue.
Community Budget Survey Questions
6 7
768
949
2773
3051
828
1838
Street Maintenance
Park Maintenance
Recreation Classes
Citywide Events
Law Enforcement
Hours of Operations
1. Which services would you reduce funding for?
8 2622
2011
637
728
3721
704
Street Maintenance
Park Maintenance
Recreation Classes
Citywide Events
Law Enforcement
Hours of Operations
2. Which services would you NOT reduce funding
for?
9 2216
4061
2857
Increased Taxes
Increased Fees
Sale of City-owned Properties
3. Which revenue-generating avenues would you
want the City to pursue?
Proposed Budget Changes
10 Capital
Improvement
Program (CIP)
March 7, 2023
City Work Program
April 4, 2023
Proposed Operating
and CIP Budget
Study Session
May 17, 2023
Community Budget
Town Hall
May 18, 2023
Timeline
Final Operating and CIP
Budget Adoption
June 6, 2023
12 13
Proposed Budget Expenditure Changes
as of June 6, 2023
Fund
Proposed
Budget
as of May 5,
2023
Operating
Changes
Capital
Improvement
Program
Proposed
Budget
as of June 6,
2023
General Fund 86,311,553 (315,047) - 85,996,506
Special Revenue Funds 10,411,018 (9,846) - 10,401,172
Debt Service Funds 2,677,600 - - 2,677,600
Capital Projects Funds 175,000 - 4,054,0001 4,229,000
Enterprise Funds 9,454,105 217,470 - 9,671,575
Internal Service Funds 8,733,704 (10,192) - 8,723,512
Total All Funds $117,762,980 $(117,615) $4,054,000 $121,699,365 1 Includes transfers out of $2,027,000 from the Capital Reserve 14 Proposed Budget Financial Overview by Fund
as of June 6, 2023
Fund Revenues Expenditures
Change in Fund
Balance/
Net Position
General Fund 80,365,447 85,996,506 (5,631,059)
Special Revenue Funds 12,991,963 10,401,172 2,590,791
Debt Service Funds 2,677,600 2,677,600 -
Capital Projects Funds 2,027,000 4,229,000 (2,202,000)
Enterprise Funds 6,744,789 9,671,575 (2,926,786)
Internal Service Funds 5,478,924 8,723,512 (3,244,588)
Total All Funds $110,285,723 $121,699,365 $(11,413,642) 15 Description Revenue Expense Change in Fund
Balance
GENERAL FUND
Restoration of Community Grant Funding - 8,000 (8,000)
Restoration of Movies in the Park - 8,380 (8,380)
Reclassification of the Emergency Services Coordinator - 28,784 (28,784) County of Santa Clara Environmental Health Permit Fees 175 4,720 (4,545) Revenue from Elimination of Festival Fee Waivers 84,218 - 84,218 Savings from Prepaying CalPERS Pension Plan's Unfunded Accrued Liability - (126,581) 126,581 Elimination of Library Extra Hours Funding - (160,000) 160,000 Transfer and Increase Golf Course Turf Management - (78,350) 78,350 TOTAL GENERAL FUND 84,393 (315,047) 399,440
Items for Final Budget Hearing – Operating Changes (Part 1) 16 Description Revenue Expense Change in Fund
Balance
SPECIAL REVENUE FUNDS
Savings from Prepaying CalPERS Pension Plan's Unfunded Accrued Liability - (9,846) 9,846 Increase SB 1 (Gas Tax) Revenue Estimate 313,218 - 313,218 TOTAL SPECIAL REVENUE FUNDS 313,218 (9,846) 323,064
ENTERPRISE FUNDS
Savings from Prepaying CalPERS Pension Plan's Unfunded Accrued Liability - (7,530) 7,530 Transfer and Increase Golf Course Turf Management - 225,000 (225,000) TOTAL ENTERPRISE FUNDS - 217,470 (217,470)
INTERNAL SERVICE FUNDS
Savings from Prepaying CalPERS Pension Plan's Unfunded Accrued Liability - (10,192) 10,192
TOTAL INTERNAL SERVICE FUNDS - (10,192) 10,192
TOTAL ALL FUNDS $397,611 $(117,615) $515,226
Items for Final Budget Hearing – Operating Changes (Part 2) Project Revenue Expense Change in Fund
Balance
CAPITAL PROJECTS FUNDS
Stevens Creek Blvd./Calabazas Creek Storm Drain Repair (infrastructure) - 420,000 (420,000) Stevens Creek Bridge Repair (infrastructure) - 172,000 (172,000) Street Light Installation – Annual Infill (infrastructure) - 35,000 (35,000) Annual Playground Replacement (parks) - 300,000 (300,000) ADA Improvements (facilities) - 100,000 (100,000)
Citywide Building Condition Assessment Implementation (facilities) - 1,000,000 (1,000,000) Transfer from Capital Reserve to Capital Improvement Program Fund 2,027,000 2,027,000 - TOTAL CAPITAL PROJECTS FUNDS 2,027,000 4,054,000 (2,027,000) TOTAL ALL FUNDS $2,027,000 $4,054,000 $(2,027,000)
Items for Final Budget Hearing – Capital Improvement Program 17 Next Steps
18 19
Next Steps
May 16, 2023
3rd Quarter
Financial
Report
May 17, 2023
Proposed
Budget Study
Session
May 18, 2023
Community
Budget
Town Hall
June 6, 2023
Final Budget
Hearing and
Adoption
Nov 2023
1st Quarter
Financial
Report
Questions?