Presentations — Cupertino City Council, February 21, 2024

CC 02-21-2024
Item No. 8
Potential November
2024 Revenue Tax
Measure Opinion
Research
Presentation
February 21, 2024
Potential November 2024 Revenue
Tax Measure Opinion Research
Business Community Survey and Outreach
Business Engagement Results
November Ballot Landscape
Recommendations and Next Steps
Agenda
2 • Staff conducted 3 forms of outreach
• Online survey
• Small focus group meeting
• Individual meetings
Business Community Survey and Outreach
• 112 responses
• 43.5% of the surveyed businesses supported a
revenue tax measure
• 35.7% supported a 0.25% TUT
• 54.0% supported a 2-3% increase in the TOT
• 35.7% supported a parcel tax
• 19.1% supported a business operations tax
Business Engagement Results
• Assembly Constitutional Amendment 13
(ACA 13)
• Assembly Constitutional Amendment 1
(ACA 1)
• Taxpayer Protection and Government
Accountability Act (TPA)
November Ballot Landscape
Forego opinion polling and additional efforts at a
November 2024 revenue-generating ballot initiative.

Recommendations
Roadmap to FY 2024 -25 Budget Adoption and Balancing
Council Goal Setting/
Work Program
Budget Update
1st Quarter Report
Budget Update
-Mid-Year Report
Fee Study and
Revenue Tax
Measures
Budget Update
-SLR Review #2
-Community Meeting
Updates
-Festivals & Fee Waivers
FY 2024-25 Proposed
Budget
Community Funding
FY 2024-25 Adopted
Budget
Budget Update
Service Level Reduction
(SLR) Preview
October 2023 November 2023 January 2024
April 2024 June 2024
February 2024
Community Budget
Meeting #1
Commission/
Committee Feedback
Labor Contracts
March 2024
Budget Update
3rd Quarter Report
May 2024
City Hall &
Blackberry Farm
Update
Community Budget
Meeting #2
Budget Update
-Audit Update
-Committed Reserve
Revenue Tax
Measures
December 2023
Budget Update
-Capital Improvement
Plan (CIP)
Last Updated 2.13.2024
Questions?
CC 2-21-2024
Item No. 9
Accept the City
Manager's Mid-Year
Financial Report for FY
2023-24
Presentation
February 21, 2024
Fiscal Year 2023-24
Mid-Year Financial Report
FY 2023-24 Mid-Year Update
Proposed Budget Adjustments
Recommendations and Next Steps
Agenda
FY 2023-24 Mid-Year Update
FY 2023-24
Adopted
Budget
FY 2023-24
Amended
Budget
as of Sept. 30,
2023
FY 2023-24
Amended
Budget as of
Dec. 31, 2023
Revenues $80.3 $112.8 $113.3
Expenditures $86.1 $121.8 $122.3
FY 2023-24 Amended Budget – General Fund
($ in Millions)
Classification
Year End
Projection
2022-23
Q1 Year-End
Projection
2023-24
Q2 Year-End
Projection
2023-24
Restricted 20.7 18.8 20.7
Committed
Capital Projects Reserve 10.0 10.0 -
Economic Uncertainty Reserve 24.0 24.0 18.0
Sales Tax Repayment Reserve - - 56.5
Sustainability Reserve 0.1 0.1 0.1
Unassigned 80.3 66.3* 26.0*
Other Classifications 5.4 5.4 5.4
Total Fund Balance $140.6 $124.6* $126.8*
General Fund Fund Balance ($ in millions)
*Excludes unrealized revenues from The Rise
• Initial allocation of $56.5 million (disputed
sales tax revenue received between April
1, 2021 and June 30, 2023)
• As of September 30, 2023, disputed sales
tax revenue received is $60.3 million, an
increase of $3.8 million
• Move additional sales tax revenue to
reserve in Q3
Sales Tax Repayment Reserve
Proposed Budget Adjustments
Proposal Revenue Expenditures Change in Fund
Balance
Utility User Tax Revenue Adjustment 795,258 - 795,258
Hidden Treasures Proceeds 12,414 10,057 2,357
Total All Proposals $807,672 $10,057 $797,615
Proposed Budget Adjustments
• No changes recommended
Staffing
• As of December 31, 2023, no funds have been
spent.
• Staff will continue to report on the use of this fund.

City Manager Discretionary Fund
Recommendations and Next Steps

1. Accept the City Manager’s Mid-Year Financial
Report for Fiscal Year 2023-24

2. Adopt Resolution No. 24-XXX approving Budget
Modification No. 2324-326, increasing
appropriations by $10,057 and revenues by
$807,672.

Next Steps
Questions?
CC 2-21-2024
Item No. 10
Amendments to the
Cupertino Municipal Code
Chapter 3.22 (Purchase of
Supplies, Materials,
Equipment, and Services)
Presentation
February 21, 2024
Proposed Amendments to
CMC 3.22 and 3.23
• Enterprise Risk Assessment – December
2020
• Procurement Operational Review – March
2022
• Fiscal Policy Gap Analysis – May 2022
Background
• Council received internal audits
• Council approved Purchasing Manager
position
• Procedural improvements implemented in
Finance Division
• Purchasing Policies developed and updated
Decisions
• Purchasing Manager is principal purchasing
official
• Implement purchasing policies for
consistency, transparency and open
opportunity
• Continue to implement recommendations
City Approach
• Amendments to CMC Chapter 3.22 and 3.23
support this effort
• Provide definitions and additional details
• Implement best practices
• Retain current structure of Ordinance
Purpose of Proposed Amendments
• Chapter 3.22 guides purchases for goods
& services
• Chapter 3.23 guides contracting for Public
Works projects
CMC Chapter 3.22 and 3.23 Overview
• Purchasing Manager introduced
• Procurement method included
• Procedures migrated
• Exemptions to competitive procurement
defined
CMC 3.22 Proposed Amendment Highlights
• Aligned definitions
• Bid advertisement and bid submittal
CMC 3.23 Proposed Amendments Highlights
Conduct the first reading of Ordinance No.
24-____: “An Ordinance of the City Council
of the City of Cupertino Amending Chapters

3.22 and 3.23 of the Municipal Code
regarding the purchase of goods and
services, and contract and bidding
procedures for public work contracts”
Recommended Actions

Cupertino City CouncilFebruary 21, 2024

Cupertino City Council
February 21, 2024