Cupertino City Council
May 21, 2024

ACTIVE PROJECTS (continued)
Project Title Description Current
Phase
Scheduled
Completion
Status/Notes
McClellan Road
Separated Bike
Corridor, Phase
3 Improve pedestrian and
bicycle safety by
reconfiguring the intersection
and vehicle movements.
(Externally Funded, in part)
Construction July 2024 Construction began in
January 2024.

School Walk
Audit
Implementation
Construct infrastructure
related improvements around
schools that were identified as
part of the comprehensive
School Walk Audit study.
(Externally Funded, in part)
Ongoing/
Construction
Ongoing
Stevens Creek
Boulevard CL
IV Bikeway -
Phase 2 –
Design &
Construction
Design and Construction of
the separated bikeway along
Stevens Creek Blvd from
Wolfe Road to DeAnza Blvd
(2A) and De Anza Blvd to US85 (2B). This includes signal upgrades at Bandley Drive.
(Externally Funded, in part)
Bid 2024/2025 Phase 2A Construction
will be posted for public
bid process once
additional grant funding
is secured. Phase 2B
Design is underway.

Tamien Innu
(Trail) – East &
Central
Segments
Design and construct an offstreet bicycle and pedestrian facility parallel to the I-280
HWY, from De Anza Blvd.

Wolfe Road (Central), from
Wolfe Rd. to Vallco Parkway
(East) (Externally Funded)
Design Late 2024 for
East
segment;
2025 for
Central
Segment
East segment will
continue into Final
Documentation once
Valley Water approves
the design. Design phase
for Central segment is
paused while the east
segment design is
finalized. The CEQA
process is complete.

ADA
Improvements
This is an ongoing program
funded annually to improve
accessibility at all public
facilities throughout the City.
(Multi-year funding)
Design Ongoing Undertaking
improvements at
Jollyman Park.

City Hall and
Community
Hall
Improvements
(Programming
and Feasibility)
Programming, Feasibility and
Community Outreach to form
the basis of a renovation
strategy for the buildings.

Feasibility/
Report
TBD Understanding of the
overall City financial
issues must advance
before this project can
progress.
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ACTIVE PROJECTS (continued)
Project Title Description Current
Phase
Scheduled
Completion
Status/Notes
Citywide
Building
Condition
Assessment
Implementation
Implement recommendations
identified as a priority in the
Comprehensive Facility
Condition and Use
Assessment.

Construction/
Ongoing,
Ongoing • Sports Center Fire
Panel Replacement:
work is awaiting final
inspection.
• Senior Center Fire
Alarm System: RFP
will be issued for
Engineering services.
• CIP is developing
scope documents for
repairs needed in
Locker/ Shower
rooms.

Library
Expansion
Project
Develop a design and
construct a 5600 SF addition
to the existing Library
building.

Building:
complete.

Landscaping:

Ready for
Bid
TBD Grant funding ($1M) is
received for Courtyard
and Landscaping scope.

Donor Wall is complete,
but minor repairs are
required.

SV Hopper
EVCS
Provide electric vehicle
charging stations (EVCS) for
SV Hopper (formerly VIA)
fleet.

Engineering analysis
underway.

All Inclusive
Play Area &
Adult Assistive
Bathroom
Facility
(Jollyman Park)
At Jollyman Park, Design
and construct an allinclusive playground and an
adult-assistive bathroom
facility adjacent to the new
AIPG. (Externally Funded, in
part)
Bid Summer 2025 Permit application and
Bid processes are
underway.

Annual
Playground
Replacement
Replacement of older
playground equipment that
is dated and worn. (Multiyear funding)
Procurement
– Various
locations
Ongoing RFPs for Little Rancho
and Canyon Oaks
playgrounds scheduled
for Fall 2024..

Blackberry
Farm Pool
Improvements
Make improvements to the
pools and facility related to
safety, accessibility, and
maintenance.

Construction May 2024 Construction
underway, scheduled
for completion in May
2024.
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ACTIVE PROJECTS (continued)
Project Title Description Current
Phase
Scheduled
Completion
Status/Notes
LawrenceMitty Park and
Trail
Design and construct a new
neighborhood park.

Located on 7.8 acres
adjacent to Saratoga Creek,
near intersection of
Lawrence Expressway and
Mitty Way.

Design IS/MND
Adoption/
Conceptual
Design
Draft IS/MND and
Final Conceptual
Design going to
Commissions and
Council for
Adoption/Approval.

Park Amenity
Improvements
Funding for various park
amenities such as benches,
hydration stations, outdoor
table tennis, cornhole,
shade structures, pickleball
striping, etc. (Multi-year
funding)
Procurement Ongoing Linda Vista DOLA
hedge barrier design is
underway.

City Bridge
Maintenance
Repairs
Repair 5 bridges as
recommended in the
Caltrans Bridge Report
along with additional
improvements to prolong
the useful life of the bridges.

The work is partially
funded (80%) through the
Bridge Preventative
Maintenance Program, a
federally funded program.

Bid 2024 Bids due in June 2024.

Construction to follow.

City Lighting
LED
Improvements
Implement the transition of
City's streetlight
infrastructure from
induction and other fixtures
to LED fixtures to meet the
"Dark Sky" Ordinance
requirements and reduce
light pollution and energy
cost.

Bid TBD. 12 – 18
months
installation
Working on
construction/bid
documents for public
bid process in June
2024.

Regnart Road
Improvements,
Phase 1
Phase 1 will construct a
retaining wall to stabilize
the road slope to the creek
from Sta 28+40 to 29+80 (+/-
140 LF).

Construction Fall 2024 Construction is
underway.

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ACTIVE PROJECTS (continued)
Project Title Description Current
Phase
Scheduled
Completion
Status/Notes
Stevens Creek
Bridge Repair
Stevens Creek Blvd Bridge
over Stevens Creek. Prepare
feasibility study to determine
appropriate scour
countermeasures, prepare
PS&E and install scour
countermeasure.

Design 2025 Preliminary
Engineering (E-76)
approval from Caltrans
received. RFP for the
design will be issued in
June 2024.

QUEUED PROJECTS
Project Title Description Status/Notes
I-280 Trail - West Segment Design and construct an off-street bicycle and pedestrian facility
parallel to the I-280 HWY, from
the Don Burnett Bicycle –
Pedestrian Bridge to De Anza Blvd
This segment is on hold until the
other segments are designed.

City Hall Annex (10455 Torre
Avenue Improvements)
Program, plan and build facility
improvements required for
interim facility to accommodate
staff while City Hall is remodeled,
as well as the long-term use of this
facility
Design documentation is 60%
complete. Awaiting direction on
City Hall project before further
action on this project.

COMPLETED PROJECTS
Project Title Description Status/Notes
Electric Vehicle Parking
Expansion
Expansion of the existing level 2
charging ports at municipal
properties.

BEAM units arrived and installed
at Library parking area.

Memorial Park - Specific Plan
Design
Following the findings of the
Master Plan process, develop a
conceptual design for Phase One
features and amenities.
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CITY OF CUPERTINO
Agenda Item
23-12759 Agenda Date: 5/21/2024
Agenda #: 11.

Subject: Initial Study Session on Fiscal Year (FY) 2024-25 Proposed Operating and Capital Improvement Program Budgets
Initial Study Session on Fiscal Year (FY) 2024-25 Proposed Operating and Capital Improvement Program Budgets
Presenters: Kristina Alfaro, Director of Administrative Services and Thomas Leung, Budget Manager
CITY OF CUPERTINO Page 1 of 1 Printed on 5/15/2024
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96 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
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
Department/Fund Relationship
FY 2024-25 Proposed Budget Table of Contents 1
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189
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206
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Balanced Budget Policy
Revenue Policies
Expenditure Policies
Capital Improvement Programs Policy
Information Technology Replacement and Capitalization Policy Pension and Retirement Funding Policy
Committed, Unassigned Fund Balance, and Use of One Time Funds Policy Long Term Financial Stability Policies
Community Funding Policy
Investment Policy
Appropriations and Legal Debt Limit Margin
All Funds Financial Schedules
Financial Overview by Fund
Flow of Funds Chart (Sankey)
All Funds Summary
All Funds Revenues
All Funds Expenditures
All Funds Expenditures by Department
All Funds Fund Balance
General Fund Financial Schedules
General Fund Contribution Schedule
General Fund Summary
General Fund Revenues
General Fund Expenditures
General Fund Transfers
General Fund Fund Balance
General Fund Forecast
Council and Commissions
Department Overview
City Council
Community Funding
Historical Society
Sister Cities
Technology, Information & Communications Commission
Library Commission
Arts and Culture Commission
FY 2024-25 Proposed Budget Table of Contents 2
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310
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317
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Public Safety Commission
Bicycle and Pedestrian Commission
Parks and Recreation Commission
Teen Commission
Planning Commission
Housing Commission
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
Applications
Infrastructure
GIS
Administrative Services
Department Overview
FY 2024-25 Proposed Budget Table of Contents 3
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401
405
407
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419
422
425
427
429
Administrative Services Administration
Accounting
Business Licenses
Purchasing
Budget
Human Resources
Retiree Benefits
Insurance Administration
Workers Compensation Insurance
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
CDBG General Admin
CDBG Capital/Housing Projects
CDBG Public Service Grants
FY 2024-25 Proposed Budget Table of Contents 4
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503
506
508
511
514
517
520
523
526
528
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534
536
539
542
544
546
549
BMR Affordable Housing Fund
Human Service Grants
General Building
Building Plan Review
Building Code Enforcement
Muni Code Enforcement
Code Enforcement
Public Works
Department Overview
Public Works Administration
Sustainability
Resource Recovery
Non-Point Source
Storm Drain Fee
General Fund Subsidy
Storm Drain Maintenance
Plan Review
CIP Administration
Service Center Administration
Golf Grounds Maintenance
McClellan Ranch Park
Memorial Park
BBF Ground Maintenance
School Site Maintenance
Neighborhood Parks
Sport Fields Jollyman, Creekside
Civic Center 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
FY 2024-25 Proposed Budget Table of Contents 5
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Sheriff Work Program
BBF Golf Maintenance
City Hall Maintenance
Library Maintenance
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
Community Shuttle
Traffic Engineering
Traffic Signal Maintenance
Safe Routes 2 School
Fixed Assets Acquisition
Non-Departmental
Department Overview
General Fund Non-Departmental
Tree Fund Non-Departmental
Debt Service Non-Departmental
Capital Reserve Non-Departmental
Facility Lease Debt Service
Appendix
Unfunded Needs
CIP Schedule
All Funds Forecast Schedule
Personnel Schedule
FY 2024-25 Proposed Budget Table of Contents 6
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Introduction
FY 2024-25 Proposed Budget Introduction 7
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City Organizational Chart
*The City Treasurer is the Director of Administrative Services FY 2024-25 Proposed Budget Introduction 9
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Directory of City Officials
City Council
Sheila Mohan J.R. Fruen
Mayor Vice Mayor
Liang Chao Kitty Moore Hung Wei
Council Member Council Member Council Member
Directory of City Officials
Pamela Wu – City Manager
Matt Morley – Assistant City Manager
Christopher Jensen – City Attorney
Tina Kapoor – Deputy City Manager
Kristina Alfaro – Director of Administrative Services
Ben Fu – Director of Community Development
Chad Mosley – Director of Public Works
Rachelle Sander – Director of Parks and Recreation
Bill Mitchell – Chief Technology Officer
FY 2024-25 Proposed Budget Introduction 10
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Commissions and Committees

ARTS AND CULTURE

COMMISSION
Carol Maa
Dana Ford
David Wang
Kiran Varsshneya Rohra
Rani Agrawal

AUDIT COMMITTEE
Angela Chen
Eno Schmidt
Hanyan Wu
Hung Wei
Sheila Mohan

BICYCLE PEDESTRIAN

COMMISSION
Herve Marcy
Grace John
Joel Wolf
John Zhao
Ilango Ganga

HOUSING COMMISSION
Angan Das
Connie Cunningham
Govind Tatachari
Ryan Golze
Yuyi He

LIBRARY COMMISSION
Archana Panda
Janki Chokshi
Liyan Zhao
Sheela Sreekanth
Qin Pan

PARKS AND RECREATION

COMMISSION
Carol Stanek
Claudio Bono
Hemant Buch
Jennifer Shearin
Seema Swamy

PLANNING COMMISSION
David Fung
Muni Madhdhipatla
Seema Lindskog
Steven Scharf
Tejesh Mistry

PUBLIC SAFETY COMMISSION
Bobby Toda
Neal Evans
Nirmalendu Das
Rohan Pandit
Sidarth Rajaram

SUSTAINABILITY

COMMISSION
Alexander Fung
Conny Yang
Steve Poon
Susan Hansen
Sonali Padgaonkar

TEEN COMMISSION
Anika Mukherjee
Joyce Cheung
Peter Chen
Pranav Gupta
Rayna Shah
Rohin Garg
Rory Hu
Shivika Biswari
Sudisha Kumar

TECHNOLOGY, INFORMATION
& COMMUNICATIONS

COMMISSION
Balaram Donthi
Emma Shearin
Mukesh Garg
Prabir Mohanty
Sudeep Kumar
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GFOA Distinguished Budget Presentation Award
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CSMFO Operating Budget Excellence Award
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Budget Message
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Budget Message
May 1, 2024
To the residents of Cupertino, Honorable Mayor, and City Council, I am appreciative of the opportunity to present the proposed Fiscal Year 2024-25 Budget. Our journey to this point has been a winding path of reductions, adjustments, and revenue enhancements. The challenges we have faced over the past year have been significant, but our efforts have been laudable and our approach diligent.

Today, we present a budget that brings us mostly into balance, largely through significant reductions in expenses for the second year in a row. Last year’s General Fund budget saw $15 million in reductions across all expense categories, but still leK a projected $15 million ongoing structural deficit, and a need to address a $10.1 million deficit in the coming year alone.

As anticipated for several years, the City has expected a significant reduction in sales tax revenue due to an administrative decision by the California Department of Tax and Fee Administration (CDTFA). This decision identified a repayment for past sales tax received as well as an ongoing reduction of approximately $30 million. A determination leLer from the CDTFA arrived in October 2023, providing the City with a potential repayment amount through April 2023. With this information, staff was able to estimate potential payments through June 2023, and the City Council subsequently approved staff’s recommendation to create a sales tax repayment commiLed reserve of $56.5 million to account for this obligation. These dollars have been set aside should the City be required to repay sales tax already received.

The combined ongoing reduction as well as this significant one-time payment are unfathomable impacts for most cities. The advanced financial planning, resilient organization, and responsive action to meet reduction needs are a testament to the commendable work the City Council and staff have accomplished.

In November, the City received some positive news, as the unaudited year-end figures for Fiscal Year 2023-24 showed approximately $20 million more in unassigned fund balance (savings) than originally estimated. This is aLributable to the diligent work of staff and City Council to reduce expenditures in the last quarter of the fiscal year when made aware of the severe impacts the CDTFA decision might have on the city. This included extending recruitment timelines and being diligent with spending for essentials to serve the community. Fund balance was helped by increased revenues in property, utility users, and transient occupancy taxes. Although these positive variances from budgeted tax revenues will help bridge the gap in years where there are shortfalls, they do not cure the ongoing structural deficit.

Navigating this path required intense communication and outreach. City staff intensified communication efforts with the City Council and the community, resulting in several Council meetings to discuss various components included in the budget that were captured in our budget adoption road map.

Partnerships have been the focus as we chart a path through this unprecedented situation. We have engaged with the community at every step of the way through several robust community outreach efforts, including two community budget meetings, three community focus group sessions, and various other in person opportunities for the community to discuss the budget with staff.

The result of this collaboration between staff, Council, and the community is the Fiscal Year 2024-25 Proposed Budget of $146.5 million in expenses, funded with $139.1 million in revenue across all funds and the use of $7.4 million in fund balance. The use of fund balance is mostly due to the use of the Capital Reserve to fund this year’s proposed Capital Improvement Projects. This budget incorporates all direction received by City Council FY 2024-25 Proposed Budget Budget Message 17
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to date. The General Fund, the City’s largest tax-supported fund, is proposed at $89.9 million funded with $89.8 million in revenue, resulting in an estimated use of fund balance of $0.1 million. The budget is just short of balancing and staff recommends using unassigned fund balance to fill the small gap in funding this year.

This minimal use of fund balance demonstrates the significant success of the Service-Level Reduction process, where savings through reduced expenditures have almost completely closed the deficit, with additional help from increased revenue.

The graphic below illustrates major components in the General Fund that have led to the current year’s budget:

There have been many stops along the budget path this year, with more still in front of us. These include the FY 2024-25 Fee Schedule and FY 2023-24 Third Quarter Report that may include adjustments that will impact the final budget along with items that will be presented at the Proposed Budget Hearing like Community Funding and Festival and Fee Waivers. Any additional direction received by City Council will be incorporated into the final budget for proposed adoption by City Council on June 18, 2024.

Our road map illustrated the path to completing the budget, prioritized increased outreach, included direction from City Council and opportunities for resident input, and incorporated carefully thought-out stops along the way that bring us to the document you see before you today.

City staff and I remain commiLed to our efforts at fostering communication and feedback with all stakeholders, including the City Council, residents, and our own staff. We expect continued change and adaptation in the future, and with the help of our many wonderful partners, we will journey along new paths as we work together to reinvent the City and meet these changing realities.

Respectfully submitted,
Pamela Wu
City Manager
FY 2024-25 Proposed Budget Budget Message 18
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Strategic Goals
On March 1, 2023, the City Council held a Goal SeLing Workshop to discuss City goals and priorities for the next two years. The City Council re-affirmed their commitment to the following five goals, which were formally adopted in February 2020:

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 every two years 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-seLing are paramount as they drive the City's Two-Year 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/). Special Projects with budgetary impacts associated with the City Work Program are listed in the respective program budgets.

FY 2024-25 Proposed Budget Budget Message 19
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FY 2024-25 City Work Program
On April 3, 2024, the City Council approved the FY 2024-2025 City Work Program, which comprised a total of 20 projects requiring an estimated $500,000 in additional funding, in addition to the $1,336,000 of previously allocated funds, totaling $1,836,00. The estimated $500k Funding for the new projects, will be considered in May 2024.

FY 2024-25 Proposed Budget Budget Message 20
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FY 2024-25 Proposed Budget Budget Message 21
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Notable Accomplishments
Administration Department
Wildfire Protection and Local Hazard Mitigation Planning – Coordinated with Santa Clara County Fire and Santa Clara County Sheriff’s office to develop evacuation planning maps for residents. This initiative addresses the requirements of AB 747 and AB 1409. The Office is currently updating both the Local Hazard Mitigation Plan and the Community Wildfire Protection Plan, with a focus on incorporating projects identified in other City plans. Integrating these plans provides the opportunity to meet additional legislative requirements related to hazards and land use planning.

Council/Commission Governance Reform Package – As part of the new FY 2023-25 City Work Program, the City Manager’s Office and the City ALorney’s Office worked to revise the Ethics Policy and address the Civil Grand Jury Report. Staff updated the Commissioner’s Handbook to align it with the new Council Procedures Manual and realign terms of office and qualifications.

Public Safety Initiatives – As part of the new FY 2023-25 City Work Program, the City Manager’s Office is working on enhancing Block Leader/ Neighborhood Watch programs to ensure greater participation as well as explore best practices to deter crime in commercial areas.

Emergency Operation Training – Initiated a new training program for City Emergency Operations Center Staff and set completion dates for Disaster Service Worker training for all City staff. In April 2024, OEM worked with the Department of Parks and Recreation to train 25 City staff who have a role in staffing emergency shelters in a disaster. Finally, the Office developed a program to initiate and track emergency public messaging using volunteer units to share information with the community.

Cupertino Business Outreach Program – A program designed to facilitate a dialogue between the private and public sectors, the Cupertino Business Outreach Program (CBOP) provides an opportunity to understand the unique needs of our local businesses and connect them with resources. CBOP incorporates an in-person (or virtual) visit to companies located within Cupertino for a conversation with the leadership team and an optional tour of the operations. With insights gained during these visits, the City hopes to double down on supporting programs that work or create new ones to fill gaps in addressing common business needs.

Cupertino Development Forum – In partnership with SJ Spotlight, the City Manager’s Office designed and cohosted the first-ever forum focused on development activity and opportunities for investment in Cupertino.

The panelist was comprised of City staff and industry practitioners representing real estate development and retail brokerage. Through a collaborative discussion, the audience was able to gain a deeper understanding of what is happening in Cupertino as it relates to commercial and residential development, retail leasing, and the overall Cupertino economy.

Cupertino Development Cabinet – Established the Cupertino Development Cabinet as an inter-departmental coordination group, providing a vital forum for discussing major policies, strategic initiatives, and significant projects in areas such as development, redevelopment, and business aLraction/expansion. Comprising representatives from key departments such as the City Manager’s Office, Community Development, Economic Development, Planning, Building, and Public Works, this collaborative effort aims to boost the City's revenue by fostering cohesive planning and execution of impactful initiatives.

SVEDA Broker Breakfast – The Silicon Valley Economic Development Alliance (SVEDA) hosted a Silicon Valley commercial broker breakfast featuring the cities of Cupertino, Mountain View, and Sunnyvale. Economic Development speakers discussed the latest commercial real estate opportunities in their respective cities.

Attendees included brokers and property owners.

FY 2024-25 Proposed Budget Budget Message 22
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Retail The- Prevention Outreach & Engagement – Partnered with the Santa Clara County Sheriff’s Office to strengthen retail theK prevention measures, enhance business intelligence, and safeguard business continuity for Cupertino businesses.

Storytellers – In 2024 the Storytellers group was established to establish an interdepartmental group to enhance the City’s communications and outreach. The group meets monthly and discusses upcoming events, projects and major initiatives. The communications team solicits information from key department leaders and provides feedback on outreach messaging and approach.

Community Outreach and Events – Planned, executed, or supported promotion and outreach efforts for community events, including: Fourth of July Celebration, 77th India Independence Day Flag Raising Ceremony, Cupertino Cybersecurity Science Fair, Silicon Valley Fall Fest, Citywide Annual Garage Sale, 10th Anniversary Fall Bike Fest, Public Safety Commission, Toyokawa-Cupertino Sister Cities 45th Anniversary Commemorative Virtual Ceremony, Veterans Day Ceremony, Community Tree Lighting Ceremony, Cupertino Development Forum, Oath of Office Ceremony, Cupertino Spelling Bee Competition, monthly Chai and Chat with Cupertino Mayor meetings, 2024 State of the City, Lehigh Town Hall with Supervisor Simitian, Big Bunny 5K and Kids Fun Run, Earth and Arbor Day Festival, Cherry Blossom Festival, Pride Flag Raising Ceremony [before end of FY ‘24], and several ribbon cuttings and grand openings for new businesses in Cupertino.

State of the City – In partnership with the Cupertino Rotary and Cupertino Chamber of Commerce, the State of the City was held at Quinlan Community Center with dozens of citizens city leaders and dignitaries in aLendance. The theme of the evening “Stronger Together” was thoughtfully delivered in an address by Mayor Mohan. Staff prepared remarks along with a presentation covering the city’s current economic and infrastructure developments, housing development plans, and budget challenges.

Media Outreach – Staff have maintained a focused approach in media outreach, aligning the City’s message, audience and goals with targeted news outlets. This approach has allowed for more impactful communication and maximized engagement and outreach. Some examples of recent positive media coverage include:

San Jose Spotlight: Cupertino plans safety upgrades for road and pedestrian bridge San Jose Spotlight: Cupertino greenlights housing development at former Vallco mall In Partnership with San Jose Spotlight, the City also hosted a policy discussion at Cupertino Community Hall centered on development in Cupertino.

Publications and Videos – Published three quarterly editions of The Scene (3 by end of the Fiscal Year (FY), and 17 editions of the Cupertino Connect newsleLer (24 by end of the FY). The Video Division has shot and edited multiple video projects including: SV Hopper, Earth and Arbor Day Festival, Workplace Waste Sorting Program, How to Sort Waste at Home and have several ongoing projects.

Administrative Services Department
Government Finance Officers Association (GFOA) – GFOA awarded the City of Cupertino the GFOA Distinguished Budget Presentation Award for FY 2023-24.

California Municipal Finance Officers Association (CSMFO) – CSMFO awarded the City of Cupertino the CSMFO Operating Budget Excellence Award for FY 2023-24.

GFOA Annual Comprehensive Financial Report – GFOA awarded the City of Cupertino the Certificate of Achievement for Excellence in Financial Reporting for FY 2021-22.

Budget Outreach Initiative – City staff launched an extensive budget outreach initiative, to engage with the community on City’s budget. Engagement efforts included interactive in-person and hybrid sessions at various locations and times, as well as booths at community events, focus groups, and community budget meetings.

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The variety of outreach styles and times provided options for residents. These events were centered around the discussions outlined in the City’s budget adoption roadmap, which is a key tool to inform residents and City Council of where we are in the budget process and the many touch points we have had this year. The budget and communication team worked diligently to organize and promote these gatherings through city and partner channels to ensure community awareness. The schedule of events was also featured in the Mercury News.

Despite best efforts, this series of outreach efforts designed to involve residents saw lower than hoped for aLendance, however, staff remains commiLed to fostering community connections and showcasing the budget tools available to better understand and research city finances.

HR Hub – 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.) and the City’s training management application.

BEST Training Program – Offered 122 training courses in 2022-23 and 48 courses in 2023-24 via 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. Coordinated the City’s participation in the Santa Clara and San Mateo County NextGen program and the Santa Clara County Leadership Academy to promote professional growth and succession planning within our agency.

Diversity, Equity, and Inclusion (DEI) – Offered staff DEI training through webinars, onsite and virtual presentations, and activities as part of the City’s BEST program to increase cultural awareness, knowledge, and communication as well as promote a more inclusive and diverse work environment.

Recruitment and Retention – In FY 2022-23, there were 20 Full Time (FT) separations, a 9% turnover rate. As of Mid-Year, FY 2023-24, there have been 6 FT separations, an 3% turnover rate. Hosted a recruitment booth at the City’s Earth Day Event to promote City job opportunities within the community.

Benefits Administration – Continued to process a considerable number of employee onboarding and oWoarding functions. In FY 2022-23, there were 24 FT new hires and 20 separations. As of Mid-Year, FY 2023-24, there have been 19 FT new hires and 6 separations. Sourced and executed a contract with a new Employee Assistance Program (EAP) provider with an improved benefit design and a lower premium at 67% less than the previous provider.

Employee Engagement Initiatives – The Director of Administrative Services initiated additional efforts to improve citywide employee engagement and morale. Quarterly mid-level manager meetings are being held with a focus on three areas: improving employee engagement and morale, improving communication, and how we can beLer support them in their role as supervisors and managers in the organization. The initial meeting was well received, and feedback was provided on what is working in the organization, what needs improvement and what ideas they have for solutions. HR will be working with Department Heads and their management teams to develop action plans and continue to meet with mid-level managers on a quarterly basis.

Additionally, ASD staff successfully managed the Annual Service Awards/End of Year Employee luncheon as well as administered the City Manager’s new employee meet and greet sessions.

Labor and Employee Relations – Successfully completed labor negotiations pursuant to salary and benefit reopener language with Labor Unions and updated the City’s Unrepresented and Elected Employee Compensation Programs and salary plans. Continued to work collaboratively with the City’s labor unions through monthly labor management meetings.

Risk Management and Worker’s Compensation– Continued to administer the City’s general liability and property insurance programs with the City ALorney’s Office. Administer the City’s Worker’s Compensation program and coordinate with the City’s third-party administrator. Managed and administered the City’s unemployment FY 2024-25 Proposed Budget Budget Message 24
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insurance program as well as the City’s DOT commercial driver program. Coordinated City’s OSHA safety and training programs and Risk Management Committee.

Administrative Policy and Procedures – Developed revised Purchasing Policy and new Public Works Policy that guide staff in vendor selection and contract award for the purchase of goods, services or Public Work projects.

Additional revised policies include the P-Card Policy which clarifies requirements and guidelines for using a City-issued purchasing (credit) card and the Travel and Reimbursement policy to provide guidance on approved travel and reimbursable expenses. The Cupertino Municipal Code was modernized to reflect industry best practices for purchasing and various procedural updates for Finance actions were provided.

Purchasing-related support – The new Purchasing Division hosted monthly meetings with department liaisons and contract administrators to communicate changes to purchasing, contracting and finance related actions.

Purchasing staff provided review and support for citywide purchases, collaborated with the City ALorney’s Office to develop updated guidance for contract development, and provided training on the use of cooperative agreements and Purchase Order submittal that align with administrative policy.

Community Development Department
Update the Housing Element of the General Plan and Concurrent Rezoning – The City received notice on April 10, 2024 from the State that the draK Housing Element has been deemed substantially in compliance. This achievement marks a significant milestone in the City's ongoing commitment to providing affordable housing opportunities, fostering inclusive communities, and addressing the diverse housing needs of its residents. The City is now moving swiKly toward the adoption of the housing element and related zoning ordinance amendments by the Planning Commission and the City Council, paving the way for future housing. The City expects to complete all the necessary steps to adopt the housing element and rezone the priority housing sites identified in it by July 2024. The State of California requires cities to review their Housing Element every eight years to ensure that each city can effectively achieve its Regional Housing Needs Allocation (RHNA). To meet this requirement, the City of Cupertino must plan for the development of at least 4,588 new housing units. The three-year planning process included analysis by the City’s Community Development Department, City Manager’s Office, and City ALorney’s Office, as well as extensive engagement with residents through townhalls, public meetings, and other outreach efforts. Concurrent rezoning of the Priority Housing sites to ensure that sites are appropriately rezoned to allow for planned growth/capacity and other associated zoning text amendments required by state law.

Permit Activities – First quarter of 2024 has seen 522 permits approved for a variety of project types and at a completion rate of 95%. 368 of the approved permits were for a variety of residential uses. Additionally, 894 planning and building inquiries were registered at the Permit Center, a higher rate than the same period in 2023.

Process Improvement – 1) Created checklists and website for compliance with AB2234 (new state re: streamlined building permit review for post-entitlement permits) 2) Updated ADU ordinance to allow more number of ADUs per lot than allowed under state law under streamlined review. 3) Eliminated Two story Planning permit process for certain two-story additions and homes, to streamline process and allow property owners the ability to apply for building permits directly 4) Implemented the use of SolarApp+ to create the required instant online permiLing for residential roof mounted solar systems. 5) Created and implemented a re-inspection fee policy to generate revenue and projects moving forward.

Housing Outreach and Coordination – 1) Allocated Community Development Block Grant (CDBG) funding to replace the existing, outdated fire alarm system at the City’s Senior Center with a complete, sitewide, fully addressable fire alarm system 2) Partnered with West Valley Community Services to provide them with grant FY 2024-25 Proposed Budget Budget Message 25
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funding for unhoused support. 3) Continued to participate in multi-jurisdictional meetings to address regional needs and pool resources, such as the CDBG Coordinators meeting, and the West Valley Collaboration – Homeless and Housing Programs meeting
Innovation & Technology Department
ProjectDox move to SaaS – The City currently utilizes ProjectDox for Plan Check reviews and approval of all permit applications since 2017. The system works to ensure that proposed construction plans meet life safety, accessibility, sustainability, and structural safety requirements of the code. Currently, the ProjectDox servers are an on-premises environment, and the maintenance and upgrades of the servers is the responsibility of the City IT Staff. Moving to the SaaS (SoKware as Service) model will shiK the responsibility of the day-to-day maintenance, upgrades, and back-ups will shift to the vendor.

Consolidation of Code Enforcement Services – Consolidated Code Enforcement operations under Accela Land Management System (LMS) and Cupertino 311 service request. The project consisted of automating Code Enforcement business processes under LMS. Working with one system creates a more efficient, trusted outcome. Additionally, custom reports become an easier task due to one application – one database. Finally, code enforcement complaints and service requests are routed from Cupertino 311 system to Code Enforcement officers.

Resource Mapping Sofware – Implemented Startup Space platform to provide ecosystem mapping between resource providers and small and medium-sized businesses. Provide access to government, public, and privately sponsored resources for underrepresented and minority-owned small business owners.

ClimateNav – Cupertino procured a user friendly and highly visual Climate Action Plan 2.0 (CAP 2.0) dashboard to explain ongoing progress toward CAP goals to both City Council and the community. This visualization tool will be updatable by staff and may avoid the cost of hiring a consultant to perform separate greenhouse gas emissions inventories. It will also assist with compiling and exporting needed data for annual greenhouse gas emissions reporting. This soKware is expected to save significant staff time, which is especially crucial given the reduced Sustainability staffing and ongoing financial crisis.

FMLive Cloud based solution – Cupertino has successfully transitioned from the existing FuelMaster SQL deployment to the updated FMLive cloud-based fuel management system. This transition offers several benefits, including cloud hosting with Amazon, real-time data availability, a user-friendly interface, seamless upgrades for existing FMUs, compatibility with fleet management systems, and transparent changes for fuel island users.

Business Process Automation – Continued to pursue business process automation, having achieved the successful automation of 40 forms, workflows, approval processes, and routine tasks. Our aim is to enhance process and technology integration, facilitating the adoption of streamlined, digital workflows that optimize efficiency while minimizing risk exposure. Our dependable platform offers users a secure and easily configurable solution that can be scaled to meet evolving needs.

Disaster Preparedness – Through a collaborative effort with OES, we have successfully developed a suite of tools designed to aid in the aKermath of a disaster. The Quick Capture tool, specifically tailored for Cupertino staff and OES Volunteers, facilitates prompt and efficient reporting of issues to the EOC in the immediate aKermath of a disaster via a windshield survey. Additionally, we have designed a Building Damage Assessment Survey on the standard state form to gauge the extent of building damage. EOC Dashboards have been implemented to enable real-time monitoring of data being collected from the field, and a Reviewer Map has been configured for the GIS staff to review and edit reports as necessary as they come in. Furthermore, we have produced detailed evacuation maps for each evacuation zone to aid in emergency evacuations.

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Code Hub – Cupertino transitioned to the Gridics platform, which replaced American Legal as the official codifier for the Cupertino Municipal Code. Gridics integrates 3D zoning technology and mapping, simplifying zoning comprehension for residents and enabling visual assessment of proposed changes. AKer a successful trial, Cupertino’s municipal code links will exclusively direct users to Gridics/CodeHUB, promising enhanced services and operational efficiencies.

Capital Improvement Plan (CIP) Management System – Implemented 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.

Proactive Managed Risk and Security Monitoring – Procured Cybersecurity Professional Services to respond to active threats through proactive monitoring and management tools that scan, manage and resolve security vulnerabilities.

City Hall Enterprise Server & Storage Tech refresh – Replaced the server environment that houses the City’s Financial ERP, Land Management business applications, and other critical applications and services. This refresh was done at the City Hall and Phoenix data centers and provides more robust backup and recovery features in the case of a cyber incident.

Cybersecurity Public Education – In September 2023, TICC, in collaboration with Department staff, hosted a successful two-part Cybersecurity Public Education community event. The first part consisted of Cybersecurity experts leading a Panel discussion. The second part consisted of five high school students from Cupertino showcasing their innovative ideas on educating the public about cybersecurity scam awareness. Cybersecurity Public Education was a work program proposal submiLed by TICC, with Council adopting proposal as part of FY2022-23 City Work Program. Anyone can fall victim to cybercrimes, and the City hopes the panel presentation and cyber fair informed and educated community members, so they can avoid becoming a victim. .gov E-mail Project – Acquired and implemented the cupertino.gov address to our E-mail system, improving security and branding, and satisfying major requirements of California State Assembly Bill 1637.

Cybersecurity Assessment – I&T engaged the services with FRSecure, a security assessment firm. A comprehensive cybersecurity review was done, including a vulnerability scan, network penetration test, and a security controls assessment that involved interviews with staff in multiple departments. A roadmap was produced to assist with improving City cybersecurity operations.

Windows 11 Upgrade Project – With support for Windows 10 ending on October 14, 2025, the City’s fleet of Windows 10 laptops will need to be replaced or upgraded before then. This is to ensure the City’s laptops continue to receive critical security updates from Microsoft.

Cupertino Room Lectern Upgrade Project – Upgraded the Cupertino Room lectern with an audiovisual-ready system so that it beLer integrates with the recent technology improvements in that space. The upgraded podium includes custom connections for laptops and other mobile display devices, support for a wireless gooseneck microphone, and a sloped panel for built-in monitor display.

Cupertino Social Room Upgrade Project – Upgraded the Social Room audiovisual system with an expanded wireless microphone and speaker system and expanded Bluetooth audio capabilities.

Sports Center Audio Upgrade Project – Upgraded the sound system in the Sports Center multipurpose room to support programs and classes such as Zumba, Pilates, cardio workout, etc. where mixed amplification of music and instructor microphone audio is an important feature. Upgraded components include a new amplifier, a combination of ceiling and subwoofer speakers, a new audio mixer, and a new Bluetooth receiver.

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Zoom Room Conference Room Upgrades – Upgraded videoconferencing technology citywide with next generation Poly Studio X30, X52, and X70 systems. These upgraded systems include conference rooms A and B at City Hall, the Quinlan Conference Room, Service Center Break Room, Service Center Conference Room, Senior Center Conference Room, and Blackberry Farm Retreat Center. Expected completion is May 2024.

Parks & Recreation Department
Community Funding – The City provides funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. The Community Funding Grant application process opened on January 1, 2024 and closed on February 1, 2024. Received 11 applications for the FY 2024-2025 Community Funding Grant Program application cycle, which were brought to the Parks and Recreation Commission for review on March 7, 2024. The Commission evaluated applications in April and provided a recommendation regarding funding to City Council for final approval.

NRPA Awarded Grant – The Parks and Recreation Department was selected as a recipient of the National Recreation and Park Association’s (NRPA) Supporting Healthy Aging Through Parks and Recreation 3.0 (SHAPR 3.0) grant. This grant supports park and recreation professionals to increase access, availability, participation, and sustainable support for programs that improve physical activity, engagement, and the quality of life for older adults. The project goal is to increase access to arthritis-appropriate, evidence-based (AAEBI) interventions in park and recreation. The City received two instructor trainings for the program along with all program start up materials. City staff from the Senior Center implemented a Walk with Ease (WWE) program targeted to seniors with arthritis or other chronic diseases and all others interested in a walking program. The program teaches participants how to incorporate physical activity safely and comfortably into their everyday lifestyle.

Teen Resource Fair – City staff hosted the Teen Resource Fair on March 16 at Main Street Cupertino. The event was run in partnership with Fremont Union High School District’s Intradistrict Council (IDC) which includes representatives from all five schools and Main Street Cupertino. The event included a teen volunteer and parttime job fair which highlighted jobs with the City of Cupertino as well as health and wellness booths coordinated by the IDC. About 350 teens were in attendance.

Teen Volunteer Opportunities – To increase volunteering opportunities for teens, as well reduce general costs, City staff have relied more on high school volunteers through partnerships with youth organizations to support City events including the Big Bunny 5K, Cupertino Campout, Monster Mash, and Tree Lighting. The summer-only Leader in Training Program (LIT) continues to support summer camps and the Youth Activity Board plans, organizes and implements youth and teen events such as Spelling Bee, HACK, and Cupertino Café. Teen Commissioners have also been invited to participate in teen and community events through assigned roles such as the master of ceremonies or moderators for events. Staff continues to look for creative ways to harness the power of teen volunteers to support events and programs.

Sweetheart Social – The Department held the first annual Sweetheart Social, a fee-based community event for families. This event was created with the idea of combining two programs into one, saving on staff time while offering a new and fun event to the community. This community event was scheduled on back-to-back evenings aKer the Preschool Program’s social, saving time in decorating and consolidating supply purchases for both programs. The Sweetheart Social offered a night of Valentines Day themed craKs, activities, and games for families.

Hidden Treasures 2023 – The Cupertino Senior Center hosted another successful Hidden Treasures event. More than $12,000 worth of donated items were sold. Proceeds from this event go to support the Stay Active Fund, which helps pay for Senior Center memberships and programs for seniors in need of financial assistance. In FY 2024-25 Proposed Budget Budget Message 28
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addition to the monetary benefit of Hidden Treasures, the months of sorting, pricing, and preparation for the day of the sale provided members an opportunity to give back. More than 45 volunteers donated over 1,150 hours for the event.

Senior Services and Youth Engagement – City staff have developed intergenerational programs and events to facilitate connecting seniors with youth and their families. Techie Teens is a summer volunteer program that provides teens an opportunity to help seniors with their technical questions. Teens are 14 to 18 years old and commit to volunteering a few hours each week of the program. One event was an Intergenerational Celebration Event in October, where the Cupertino Senior Center partnered with Cupertino Change Agents, a youth-based, Cupertino non-profit. Adults 50+ enjoyed musical performances by members of the organization and participated in a variety of activities including cookie decorating and craK projects. Another program was the Thanksgiving Youth Art Celebration. During the month of November, “What Thanksgiving Looks like for You,” a seasonal art exhibit comprised of paintings from teen artists of the Youth of Suha Suha Art Studio, was displayed at the Cupertino Senior Center lobby for all visitors to view. The City hosts various opportunities throughout the year for intergenerational engagement.

Glow Night Golf – Blackberry Farm Golf Course introduced two Glow Night Golf events to the community this year. The events, held on November 9 and December 8, had a total of 56 participants, all willing to brave the cold for this unique experience. Using glow in the dark balls, golfers played a shot gun style game, on the LED lit up course.
3 Grade Creek Tours – During FY23-24 McClellan Ranch Preserve hosted 27 CUSD 3rd grade classrooms for the beloved creek tour program. More than 625 students and their teachers participated in the exploration of our local watershed and unique riparian and oak woodlands habitat, highlighting pollution prevention. Staff revamped the program to ensure that the creek tours are aligned with the California Third Grade Curriculum Standards. This year staff also incorporated the Stevens Creek Third Grade Creek Survey as an ongoing student-based research study. It compiles the data from each field trip along with that of all trips from this school year, so that so students can produce meaningful data that monitors the health of the creek and protected watershed environment.

Wilson Park Community Gardens – Garden plots at the Wilson Park Community Gardens were rented out. With a total of 15 plots available, most have been filled, and there is currently a growing waitlist of prospective gardeners.

Lap Swim at Blackberry Farm Pool – With new lane lines installed and replastering of the pools, Blackberry Farm will begin offering lap swim to visitors. A total of 6 lanes will be available from 9 a.m. to 10 a.m. on Saturdays and Sundays for dedicated lap swim in 30-minute blocks.

Public Works Department
12 consecutive Tree City USA Recognition application submiLed – 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 commiLed to the mission of environmental change. Arbor Day Foundation recognition is expected in the coming weeks.

Received and reviewed applications for approximately 100 development projects and 500 encroachment permits.

Reviewed and facilitated the planning approvals of a 7-unit condominium subdivision at 10046 Bianchi Way and the revised entitlements for The Rise (formerly Vallco Town Center).

Completed the City’s annual recertification for FEMA’s Community Rating System (CRS) in order to maintain the City’s Class 7 rating
rd
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Completed the Memorial Park Ponds removal project and provided more usable open space area for Cupertino residents and visitors.

Completed the Service Center Security Gate Project.

Acquired two transportable solar EV vehicle charging units through a grant funded by Silicon Valley Clean Energy.

Initiated the Storm Drain Outfall Inspection Project.

Acquired two EV trucks added to our fleet
Facilities completed 2,255 work orders
Fleet completed 626 work orders
Completed and opened the Regnart Creek Trail and Fencing project.

Completed installation of the Creekside Tot Lot playground.

Completed installation of the full-sized basketball court at Wilson Park.

Completed construction of the community gardens at Wilson Park.

Renamed the I-280 trail to “Tamien Innu” through a successful community engagement process.

Continued to ensure full SB 1383 compliance with nearly 600 businesses.

Provided SB 1383 outreach to over 200 businesses which included regulatory compliance conversations with Owners/Managers/Staff and other relative stakeholders.

Arranged installation of 20 full trash capture devices to keep trash out of our creeks.

Conducted 756 reviews of building and demolition permits for debris management and stormwater compliance.

Conducted 136 preventative stormwater inspections
Responded to 120 reports of discharges and threats of discharge to the storm drain system.

Assisted 4 low-income residents apply for or renew their cost-sharing reduced stormwater fee.

Worked with GIS to digitize two inspection forms.

Coordinated 10th Anniversary Fall Bike Fest, the largest and most aLended Bike Fest to date with over 500 attendees.

Successful expansion of SV Hopper community shuLle into the City of Santa Clara and achievement of 100,000 ride milestone.

Adoption of Cupertino Vision Zero Policy and Action Plan Installed new Barbeque and serving table at Portal Park rental picnic area.

Installed benches at the DOLA’s at Linda vista and Jollyman Parks.

Effective maintenance response and clean-up during the intensive 2024 winter storm season.

Replaced 51 fluted street light poles to provide enhanced lighting, power, and safety to residents as well as sustainable infrastructure for the City.

Completed 364 bi-annual inspections/cleanings of storm drain inlets that have trash capture devices Successfully applied for numerous grants, including $425,600 for Bollinger Road Safety Improvements analysis, outreach and design, approximately $3,200,000 for various road safety improvements, as well as an additional $850,000 for McClellan Road Bridge.

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New Initiatives
Administration Department
Professional Women’s Luncheon – This inaugural luncheon is poised to bolster the Office of Economic Development's mission in fostering business retention, expansion, and aLraction by fostering meaningful engagement and networking opportunities among women business owners and leaders within Cupertino.

Distinguished speakers will have the platform to share their inspiring narratives, highlighting their leadership journeys and the impactful ways they've contributed their voices to the business landscape of Cupertino. This event promises to be a celebration of empowerment, collaboration, and the invaluable contributions of women in business.

Cupertino Business Connect – Unveiled a cuLing-edge platform revolutionizing the local business landscape in Cupertino. This dynamic virtual community, offered at no cost, is a powerhouse of resources and support tailored to fuel the growth and success of businesses in Cupertino. Within this vibrant hub, business owners gain access to a plethora of local resources, can register for enriching workshops and trainings, tap into an extensive knowledge base, and forge meaningful connections with seasoned business advisors and industry experts spanning various domains. This initiative aims to empower and equip Cupertino businesses with the tools and knowledge needed to thrive in today's competitive market.

Administrative Services Department
Purchasing related training – Staff will develop and present training outlining the tenants of public purchasing, use of various solicitation methods and documents and review the overall procure-to-pay process. Additional training will include a review of contract development process and best practices, and the fundamentals of contract management/administration, as budget allows.

Culture Statement Project – Develop a department cultural statement that identifies our values within the department while participating with other departments to craft a cultural statement for the City. This statement will be developed with input from staff throughout the department and organization to highlight characteristics we currently, and aspire to, reflect.

Financial ERP (Enterprise Resource Planning) System Review – The current ERP, New World System, will be reviewed in consultation with Tyler Munis (owner) to determine areas of improvement and workflow or business process efficiency. These improvements may be identified through new features that are now available in the existing system, activation and use of previously underutilized system features or creation of customized solutions and reports. Key staff in the Administrative Services and Information and Technology department will be leading the review, performing testing, conducting user outreach and implementing identified improvements.

Community Development Department
Process Improvement – 1) Ongoing effort to create and update handouts to facilitate a more transparent and efficient review process, such as Accessory Dwelling Unit (ADU), planning inspections, etc. 2) Project review soKware updates for improved integration and access. 3) Review and establish new and updated policies and procedures for the permiLing, plan review, and inspection functions. 4) Follow through with researching and implementing new parking citation devices for code enforcement to update the old units that are no longer supported. 5) Continue to work with IT on relocating our electronic plan review system (ProjectDox) from on premises to SAAS. 6) Continue to work with IT on updating the online permiLing portal associated with Accela. 7) Code Enforcement will continue to work with IT on implementing the Code Enforcement module in FY 2024-25 Proposed Budget Budget Message 31
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Accela to get all Divisions on the same system. 8) Continue the research and work with IT to get the parking citation equipment updated to ensure a more efficient process for staff. 9) Continue to work on the automation of data migration from Accela/ProjectDox into Laserfiche to eliminate the staff time needed to manually perform this function.

Outreach – Continue participation in public events to boost outreach efforts for every division within the Community Development Department. Efforts to ensure fostering interaction and disseminating information regarding the department's services and requirements.

Ordinance updates – Updates are being prepared to amend Chapter 19.48, Fences, Chapter 19.60, General Commercial, Chapter 19.124, Parking and Chapter 14.18, Protected Trees, to add clarifications, anticipated to be completed by late Fall 2024.

Revise & Update Heart of the City Special Area – Prioritize following completion of Housing Element: 1) Address effect of AB 2011 and build on Housing Element goals to facilitate housing production in transit-oriented locations, 2) Tailor permissible uses to revitalize local public-facing commercial uses (retail/restaurant/entertainment/professional office, etc.).

Housing Element Implementation – Collaborate regionally and with stakeholders, such as affordable housing developers etc., to implement Housing Element policies and action items per the schedule identified in the Housing Element.

Parking standards – Evaluate the existing parking requirements in the Cupertino Muni Code and find opportunities to update and modernize to be consistent with industry and regional standards.

Outdoor Seating – Evaluate and update the existing outdoor seating requirements and the conditional use permit process to be consistent with industry and regional standards and as efforts to support evolving community needs.

Objective Design Standards – In response to newly adopted State housing legislation, the Council identified the adoption of design standards as a Work Program item. The goal was to create objective design standards for residential and mixed-use residential projects. The effort would also including ensuring adequate buffers between future higher-density residential and mixed-use development from established residential neighborhoods.

Support for the Unhoused – Collaborate and fund jointly with West Valley efforts to address regional needs and find workable support for the Unhoused. Continue to aLend meetings with the Cupertino Unhoused task force to help establish a standardized process to provide assistance. Work on Housing Element implementation items to support the production of affordable housing, including housing for the unhoused.

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Innovation & Technology Department
Virtual Reality (VR) Decarb – Using the Silicon Valley Clean Energy (SVCE) awarded grant funds, Cupertino will develop a VR experience providing an engaging way to learn about decarbonization. The virtual environment will be a way to create familiarity with a zero-emissions home and ideally inspire residents to adopt these zeroemission options in their own homes. The VR DECARB system will be available at Cupertino festivals, Block Parties, and available as requested by the community.

AR McClellan Ranch – Visitors to McClellan Ranch download the application from the iTunes Store or Google Play Store. Upon opening the application, they are encouraged to visit six locations at McClellan Ranch to activate additional content using the “magical looking glass” on their mobile devices. Upon opening the app, the visitor is instructed to select a language: English, Hindu or Mandarin to begin the experience. Throughout the augmented reality experience, Cooper will act as a tour guide to instruct visitors on interactivity and content at each location. All experiences contain text and audio description in the language selected.

Business Process Automation – Innovation and Technology are revolutionizing traditional business operations to maximize efficiency in Cupertino. Our objective is to improve the fusion of processes and technology, enabling the embrace of intelligent, digital workflows that boost efficiency and reduce risks. Our reliable platform provides a secure and adaptable solution that can grow alongside changing requirements. With over 50 forms completed and ongoing, we're committed to continual progress.

Accela Roadmap – Developed 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.

City Website Redesign – In collaboration with various departments and divisions to redesign the Cityof Cupertino website (cupertino.gov). This project will involve building new wireframes, content audit, usability analysis, and tracking current traffic patterns.

ACA Guide and Wrapper – Enhance user interface and provide seamless navigation through a new guide and wrapper on the City’s Land Management System – 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.

Parks & Recreation Department
Defining and Developing Partnerships – Reviewing and updating procedures in place for establishing partnerships with other organizations.

Sponsorship Opportunities – Develop and increase opportunities for other organizations to sponsor City programs and events.

Fall 2024 Preschool Classes – In response to public schools now offering free Pre-K classes for four-year-olds, staff revamped the Preschool Program to expand the three-year-old program offerings, including a combination class for four-year-olds still interested in remaining in the City’s play-based program. The revised program is scheduled to start in the Fall later this year.

Group Tours at McClellan Ranch Preserve – Beginning Fall 2024, McClellan Ranch Preserve will offer a fee-based tour program that allows groups the opportunity to schedule time with staff to explore the Nature Trail and/or spend time with the Environmental Education Center’s Animal Ambassadors. Tours will be scheduled based on staff availability and limited to two-hour blocks.

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Sports Center Party Rentals - The Cupertino Sports Center will begin offering sports themed parties. Rental packages include the use of an indoor party room for meals and celebrations.

Public Works Department
The following Infrastructure CIP projects were completed this year: Stevens Creek Boulevard/Calabazas Creek Storm Drain Repair, Pumpkin and Fiesta Storm Drain Project (Phase 1), and Regnart Road Improvements (Phase 1).

The following Parks CIP projects were completed this year: Blackberry Farm Golf Renovation/Alternative Use Study, Community Gardens - Wilson Park, Full-sized Outdoor Basketball Court - Wilson Park, and Memorial Park - Specific Plan.

The following Facilities CIP projects were completed this year: Electric Vehicle (EV) Parking Expansion - BEAM units purchase and installation.

The following Bike/Ped/Transportation CIP projects were completed this year: McClellan Road Separated Bike Corridor, Phase 3, De Anza Boulevard Buffered Bike Lanes.

Successful application for CPG funding from Ro Khanna’s office ($850K) for McClellan Road Bridge project. Evan Low’s office procured a grant last year ($5M) for the project as well.

The Lawrence-MiLy Park and Trail CIP project completed the conceptual design phase, including the CEQA reporting, and is advancing into the Schematic Design phase, leading to construction documentation and eventually construction.

The Memorial Park Ponds Repurposing CIP project was awarded “2023 Project of the Year” in the “Environment/Parks; Less than $2 Million” category, from the APWA Silicon Valley chapter.

Initiate design for the Fire Alarm System Replacement Project for the Senior Center Negotiated a 2-year extension to the current landfill agreement (to November 2023) and have begun work toward negotiation of a new one. The current agreement, established in 1989, expires in November 2023.

Successfully awarded a $8.465 million grant to initiate a significant four-year expansion of the ViaCupertino on-demand shuLle into City of Santa Clara, including electrification of fleet. Program rollout efforts underway, expanded service begins July 1.

Lawson Middle School Bikeway Study in progress, to evaluate alternatives to enhance safety for students riding bicycles to and from Lawson Middle School. Three community meetings and draK study completed to date, City Council meeting anticipated summer 2023.

Implementation and ongoing evaluation of pedestrian scramble traffic signal phasing at Bubb Rd/McClellan Rd intersection.

Implementation of traffic adaptive traffic signal operations along North De Anza Blvd. Acquisition of hardware for citywide traffic signal and communication upgrade. Installation and improvements in progress.

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Budget Overview
The Proposed Budget for the upcoming fiscal year highlights an increase in both expenditures and revenues compared to the previous year's Adopted Budget. Total expenditures are expected to be $136.9 million, a $15.1 million or 12.4%, increase from the previous year. Similarly, total revenues are anticipated to be $129.7 million, a $19.5 million or 17.7%, increase from last year's Adopted Budget.

FY 2024-25 General Fund expenditures, which supports the majority of City operations, are expected to be $89.9 million, an increase of $3.9 million or 4.5%, from the previous year's Proposed Budget. General Fund revenues are anticipated to be $89.8 million, which is a $9.5 million or 11.9%, increase from the previous year's Adopted Budget, resulting in an estimated use of fund balance of $0.1 million. The budget is just short of balancing and staff recommends using unassigned fund balance to fill the small gap in funding this year. The General Fund's ending fund balance is projected to decrease to $149.9 million.

As shown in the chart below, the largest fund is the General fund at 61%.

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The graph below summarizes the changes in the City’s General Fund over the last five years:

The FY 2024-25 Proposed Budget proposes funding for a total of 207 positions, representing a reduction of five positions from the FY 2023-24 Amended Budget. This reduction is due to revenue shortfalls resulting from the California Department of Taxes and Fee Administration (CDTFA) audit. It is important to note that the positions being eliminated are vacant positions that have not been filled for various reasons such as resignation, retirement, or the positions being left unfilled.

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Budget Roadmap
This year, included many stops along our budget roadmap to budget adoption as illustrated in the graphic below:

Each stop provided staff with feedback that has been incorporated into this budget.

October - Created Sales Tax Repayment Reserve and approved 3.5% cost of living increase for most employees.

November - Reduced 4th of July funding as part of the first quarter financial report.

December - Presented revenue tax measures. Staff was asked to return with business community feedback.

January - Presented Service-Level Reductions (SLRs). Council gave direction to proceed with most items. Council added back crossing guard services and directed staff to add back all Community Benefit items but secure outside funding for those items.

February - Council provided direction on fee study, recommended not moving forward with revenue tax measure survey, and increased Utility User Tax revenue estimates as part of the mid-year financial report.

March - Council gave direction to proceed with the present Capital Improvement Plan of $17.9 million offset by $9.5 million in outside funding as presented and increased the City Council Work Program budget by $500,000.

April - Council gave direction to include updated SLRs as presented.

Items remaining in our roadmap include the FY 2024-25 Fee Schedule and FY 2023-24 Third Quarter Report that may include adjustments that will impact the final budget along with items that will be presented at the Proposed Budget Hearing like Community Funding and Festival and Fee Waivers. Any additional direction received by City Council will be incorporated into the final budget for proposed adoption by City Council on June 18, 2024.

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Changes to the Budget and Policies
Revised Fees
Matrix Consulting Group recently conducted a comprehensive fee study, that was presented to City Council in February 2024. The Fiscal Year 2024-25 fee schedule is expected to be considered for City Council adoption in early June 2024, with the new adopted fees going into effect 60 days after adoption in mid to late July 2024.

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 CommiLee reviews the policy and acts as an oversight commiLee on investments. The policy directs that an external auditor performs agreed-upon procedures to review City compliance with the policy. The Audit CommiLee reviewed and accepted the current Investment Policy on April 22, 2024. The City Council will consider the City's Investment Policy in May 2024.

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 an appropriate (authorize to spend) each year. The purpose of this law is to limit government spending by puLing a cap on teh total proceeds of taxes that may be appropriated each year.

Proposition 111 and Senate Bill 88, approved by California votes on June of 1990 offered cities more flexibility in choosing inflation and population factor to calculate the limit.

The City’s FY 2023-24 appropriations limit is $127.9 million, an increase of $5.1 million, or 4.2%, from the FY 2022-23 limit. If a city exceeds the legal limit, excess tax revenue must be returned to the State or citizens through refunds, rebates, or other means that may be determined at that time. For FY 2023-24, 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 2024-25 appropriations limit in May 2024. As a result, the FY 2024-25 appropriations limit will not be known until May 2024 and will be included in the Adopted Budget.

Budget by Fund
General Fund
The General Fund is the primary source of funding for critical services in the community, including law enforcement, public works, community development, park maintenance, code enforcement, and administrative support services. These services are financed mainly by local taxes such as sales tax, property tax, and transient occupancy tax, as well as other discretionary sources. The General Fund is responsible for financing services that do not have dedicated funding sources, ensuring that essential public services are available to the community.

General Fund revenues for the upcoming fiscal year are projected to be $89.8 million, representing an increase of $9.5 million or 11.9% from the FY 2023-24 Adopted Budget. This is due to an increase in Charges for Services related to Cost Allocation expenses, an increase in Other Service Fees related to the City's community shuLle program revenue, and an increase in the City's investment earnings.

General Fund expenditures for the next fiscal year are $89.9 million, indicating a $3.9 million, or 4.5% increase from the FY 2023-24 Adopted Budget. This is due to an increase in Contract Services primarily aLributed to an increase in a general service agreement in the City's community shuttle program.

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Although General Fund expenditures are increasing in FY 2024-25, the City will continue to demonstrate proactive fiscal stewardship in response to the California Department of Tax and Fee Administration (CDTFA) audit and its substantial reduction in sales tax revenue. Through Service-Level Reductions (SLR), the City aims to lower expenses or modify how services are provided, while Fiscal Accountability measures focus on aligning budgets with actual costs and streamlining expenses. These strategies blend cost reduction with service adjustment, reflecting an effort to manage financial constraints, optimize resource allocation, and consider potential impacts on community services. All recommended SLRs were reviewed and approved by City Council in April 2024. The SLRs can be found in the Service-level Reduction table and are categorized into the following four groupings:

Operations and Maintenance
Infrastructure
Fiscal Accountability
Community Benefit
The following chart shows four years of total revenue, expenditures, and changes to fund balance for the General Fund:

In FY 2024-25, the General Fund's unassigned fund balance is projected to be $22.8 million, a decrease of $3.8 million, or 14.2%, from the FY 2023-24 Amended Budget (Year End Projected). Unassigned fund balance account for the remaining fund balance aKer all other categories have been calculated. The decrease in unassigned is to funds that are anticipated to be moved to all other classification category. Total fund balance is estimated to be $149.9 million, a decrease of $.11 million, or 0.1%, from the FY 2023-24 Amended Budget. The slight decrease in total fund balance is due to the deficit with revenues slightly lower than expenditures. With the budget just short of balancing, staff recommends using unassigned fund balance to fill the small gap in funding this year.

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As shown in the graph below, the majority of General Fund resources are used to support Public Works (31%), Law Enforcement (21%), Community Development (13%), Non-Departmental (8%), Administrative Services (8%), Administration (7%), and Parks and Recreation (7%). Non-Departmental expenditures are transfers to other funds.

Special Revenue Funds
Special Revenue Funds are established to account for the proceeds of specific revenue sources that are legally restricted for expenditures for particular purposes. For example, gas tax revenues or development impact fees.

The largest Special Revenue Fund is allocated to streets, roads, and transportation, while other funds are designated for storm drain management, affordable housing programs, and park development.

For the upcoming fiscal year, the Proposed Budget for Special Revenue Funds is $14.0 million, which represents an increase of $3.6 million or 34% compared to the FY 2023-24 Adopted Budget. Capital Outlays are higher due to more Capital Improvement Program (CIP) projects and increased Cost Allocation expenses.

Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

As part of service level reductions, departments decreased their contract services and special projects.

The Special Revenue Funds receive funding from two sources: $16.4 million in restricted department revenue and $2.2 million in transfers, resulting in a total funding of $18.6 million. The Special Revenue Funds are expected to end the year with a fund balance of $30.7 million, reflecting an increase of $4.7 million from last FY 2024-25 Proposed Budget Budget Message 40
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year's Amended Budget. This increase in fund balance is mainly due to increased Measure B and interest revenues.

Debt Service Funds
The Public Facilities Corporation Debt Service Fund provides for the payment of principal, interest, and associated administrative costs incurred with issuing debt instruments. On September 29, 2020, the City’s 2020A Certificates of Participation (2020 COPs) were successfully sold 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 ten 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 2023-24 Adopted Budget. The Debt Service Funds are funded by $2.7 million in transfers from the General Fund.

Capital Projects Funds
Capital Projects Funds are used for the acquisition or construction of major capital facilities and infrastructure.

Capital Projects Funds include the Capital Improvement Projects Fund, Stevens Creek Corridor Park Fund, and Capital Reserve Fund. These funds are used to finance the implementation of projects identified in the City's five-year Capital Improvement Program (CIP).

The Proposed Budget for Capital Projects Funds is $22.1 million, an increase of $17.8 million from last year's Adopted Budget. This increase is due to transfers from the Capital Reserve Fund to the Capital Improvement Projects Fund and an increase in CIP projects for the year.

The Capital Projects Funds are primarily funded through a combination of transfers from the General Fund, grants, donations, development impact fees, and other dedicated revenue sources. As projects are completed, any remaining funds are typically rolled over into the Capital Reserve Fund to be used for future projects.

Enterprise Funds
Enterprise Funds are designed to support services that are funded directly by fees charged for goods or services. The City's Enterprise Funds include Resource Recovery for the solid waste collection franchise, Blackberry Farm for the City-owned golf course, Sports Center for the Cupertino Sports Center, and Recreation Programs for cultural, youth, teen, sports, and physical recreation programs.

The Proposed Budget for Enterprise Funds is $9.3 million, which represents a decrease of $0.4 million or 4.1%, from the FY 2023-24 Adopted Budget. The Enterprise Funds are funded by $6.1 million in program revenue, $0.5 million in transfers in, and $2.7 million in reserves. The Enterprise Funds are projected to end the year with $3.8 million in reserves, a decrease of $2.7 million from last year's Amended Budget. This decrease is due to the use of reserves, which were accumulated in previous years. During the pandemic, the Parks and Recreation funds accumulated reserves as revenues were higher than expenditures.

Internal Service Funds
Internal Service Funds are for goods or services provided to other City departments or governments on a costreimbursement basis. These funds include programs for innovation and technology, workers’ compensation, equipment, compensated absences, long-term disability, and retiree medical insurance.

The Proposed Budget for Internal Service Funds is $8.6 million, which is a slight decrease of $0.08 million or

0.9%, compared to last year's Adopted Budget. The Internal Service Funds are funded by $5.4 million in program revenue, $2.4 million in transfers from the General Fund, and $0.8 million in reserves. The Internal FY 2024-25 Proposed Budget Budget Message 41
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Service Funds are projected to end the fiscal year with $2.6 million in reserves, increasing by $0.9 million from last year's Amended Budget.

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Service-Level Reductions
The table below illustrates service-level reductions made to the FY 2024-25 Budget. This budget was developed by taking the previous year's base budget and incorporating additional ongoing costs, while also adjusting material and contract expenses based on the Consumer Price Index (CPI), where applicable. The table below is reflective of feedback received from City Council in January and April of 2024. Community benefit service level reductions were originally proposed at $463,690. Based on Council direction, only $123,343 remain for reduction in the 4th of July event, as staff was directed to secure alternate funding for the other items. Staff is working with non-profit and for-profit organizations, but nothing has been finalized to date.

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Special Projects
The FY 2024-25 Proposed Budget allocates funds for Special Projects, which are typically one-time operational projects. This includes City Council Work (CWP) Program items that are included in the Special Project expense category. We have split special projects below to be reflective of the CWP and all other special projects.

The Special Projects are detailed in the respective program's Special Project section and summarized in the table below. Some Special Projects' budgets from previous fiscal years may also be carried forward into FY 2024-25.

City Council Work Program
All Other Special Projects
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Current Economic Update
National and State Economic Conditions
In the first quarter of 2024, real gross domestic product (GDP) in the U.S. increased by 1.6%, following a 3.4% increase in the previous quarter. This growth was driven by increased consumer spending, residential and nonresidential fixed investment, and state and local government spending, partially offset by decreased private inventory investment. Compared to the previous quarter, the slower GDP growth was mainly due to reduced consumer spending, exports, and government spending, along with tighter financial conditions and restrictive monetary policy. Despite this, recent data indicates positive, albeit below-trend, growth for the year. Job growth is slowing, but the labor market remains robust, and consumer resilience persists.

Recent economic data has shown above trend growth fueled by a rise in consumer spending and a continuing healthy US job market. Inflationary trends are subsiding, but core levels remain above the Fed’s target. Given the cumulative effects of restrictive monetary policy and tighter financial conditions, it is believed that the economy will gradually soften and the Fed will loosen monetary policy in 2024.

In March, the US Treasury yield curve stabilized as the Federal Open Market CommiLee leK the Federal Funds rate unchanged. The 2-year Treasury yield was unchanged at 4.62%, the 5-year Treasury fell 4 basis points to

4.21%, and the 10-year Treasury yield dropped 5 basis points to 4.20%. The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -42 basis points at March month-end versus -37 basis points at February month end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -56 basis points. The inversion between 3-month and 10-year Treasuries widened to -117 basis points in March from -113 basis points in February.

As of March 2024, the U.S. unemployment rate is 3.8%, showing a slight increase from 3.5% in March 2023. The participation rate rose up to 62.7% but remained below the February 2020 level of 63.3%. The U-6, a broader measure of unemployment that includes those marginally aLached to the labor force and employed part-time for economic reasons, was unchanged at 7.3%. Average hourly earnings rose 4.1% year-over-year in March, down from 4.3% last month. Employment remains strong by historical standards.

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Despite worries about inflation, bank troubles, and a looming recession, American consumer confidence in March showed a slight uptick despite two prior months of decline. The Consumer Confidence Index dipped slightly to 104.7 in March from a revised 104.8 in February. Expectations for inflation over the next year remain high at 6.3%. However, confidence in current conditions decreased, mainly due to concerns about the job market, future business prospects, and the divisive political climate. Despite consumers' resilience, factors like dwindling savings, increasing credit card debt, and the resumption of student loan payments could pose challenges to future economic growth.

According to the California Employment Development Department (EDD), the state's unemployment rate is steady in March 2024 is preliminary at 5.3% compared to the revised to 4.8% in March 2023. The EDD also reported that employers added 28,300 nonfarm payroll jobs to the economy in March 2024. Total employment reached 18,313,500, up by 1.9% (345,700 jobs) compared to the same period last year.

The California Association of Realtors (CAR) reported a 7.7% increase in statewide median home prices and California's median home price was 6.0% higher than February 2024. Additionally, the statewide single-family home sales for March 2024 are down 4.4% from March 2023. Similarly, Santa Clara County's growth rate is at

12.4% in prices of single-family homes and a 0.5% increase in sales compared to the same period last year.

Cupertino Economic Conditions
The unemployment rate in the San Jose-Sunnyvale-Santa Clara MSA was 4.2% in March 2024, up from the yearago estimate of 3.2%. This was below the unemployment rate for California and the nation during the same period. The number of employed persons was 1.03 million in March 2024, down from 1.05 million in March 2023.

Housing prices remain relatively strong compared to the same period in 2022. Based on data from Redfin, the median sales price for all home types was $3,300,000 for March 2024 compared to $2,758,000 in March 2023 .

The City experienced a net taxable value increase of 4.6% for the FY 2023-24 tax roll.

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Key Budget Assumptions
Revenue Assumptions
The City's General Fund revenues heavily depend on property tax, sales tax, and transient occupancy tax (TOT). However, the ongoing CDTFA audit is expected to alter the way sales tax is allocated to the City, leading to a significant reduction in sales tax revenue. As a result, the City anticipates General Fund revenues to decrease by $30 million, or 28%, from original projections.

Personnel Assumptions
FY 2023-24 salaries and benefits reflect the cost-of-living adjustments approved by the City Council in August 2022. The City is currently negotiating with its bargaining groups because the agreements, which expire on June 30, 2025, include a salary and benefits reopener. In the forecast, full-time salaries are expected to increase by the CalPERS payroll growth rate. On the other hand, part-time salaries are forecasted to grow at a rate of

1.5%, which is a slower rate than full-time salaries.

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 38% of employees are below Step 5.

Non-Personnel Assumptions
Non-Personnel budgets were developed based on previous year's actual expenditures and adjusted for the current year's needs. One-time projects were excluded to reflect ongoing expenditure needs. In response to the anticipated revenue shortfall resulting from the CDTFA audit, departments were asked to find ways to reduce the base budget. To balance the budget, various categories including materials, contract services, capital outlays, special projects, transfers to other funds, and contingencies were reduced in the Adopted Budget.

Ongoing Challenges
Retirement Benefits
Rising retirement costs are driving the increase in employee benefits. Cupertino offers retirement benefits to its employees through the California Public Employee’s Retirement System (CalPERS), which experienced a significant decline in its assets due to poor investment returns during the Great Recession. Moreover, changes in actuarial assumptions and enhanced benefits due to higher life expectancies have further increased the plan's liabilities. Consequently, the City's pension costs have escalated considerably and currently constitute one of the City's largest financial obligations.

The table below illustrates the City's CalPERS costs over the next few years.

In December 2016, the CalPERS Board of Administration implemented a three-year phase-in beginning in FY 2018-19 to lower the discount rate from 7.5% to 7.0%, resulting in significant increases in retirement costs. In FY 2021-22, the discount rate was further reduced to 6.8% due to the FY 2020-21 investment gain of 21.3%, which FY 2024-25 Proposed Budget Budget Message 49
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triggered the Funding Risk Mitigation Policy.

To mitigate the impact of pension rate volatility on the City's budget, the City established a Section 115 Trust in May 2018. The Section 115 Pension Trust had a balance of $19.1 million as of June 30, 2023, which can be utilized to fund pension costs.

Revenue Volatility
The City of Cupertino heavily relies on business-to-business (B2B) sales taxes for its sales tax revenue, making it highly sensitive to economic fluctuations. The City experienced the impact of this volatility during the dotcom crash from 2000 to 2004. The heavy reliance on the high-tech industry makes the City vulnerable, and the loss of one of the top three sales tax producers in FY 2013-14 made the City more dependent on a single tax producer, further increasing its vulnerability to business volatility.

The COVID-19 outbreak in 2020 significantly impacted the City's revenues from sales and transient occupancy taxes. Although certain sectors, such as restaurants and hotels, brick-and-mortar retail and restaurants, were severely affected, the City experienced an increase in business-to-business sales tax revenues and County pool allocation share. The increase in sales tax revenue was aLributed to the rise in online sales due to statewide shelter-in-place mandates and the higher demand for computer and electronics equipment due to the shiK to remote work. While the City's sales tax revenues reached historic highs in FY 2020-21 and FY 2021-22, the City considers it a one-time event, and the recovery of the restaurant and hotel, general consumer goods, and automotive industry groups did not offset the declines in business-to-business sales tax and County pool allocation as online sales decreased from their recent historic highs. Transient occupancy tax revenue decreased due to reduced business travel during the pandemic but has begun to recover in FY 2022-23.

In December 2021, the CDTFA informed the City that an audit would be conducted on one of its taxpayers.

The CDTFA verbally notified the City in March 2023 of its preliminary determination that tax dollars had been misallocated to the City, discussing the potential impacts on the City. Following discussions with the affected taxpayer and the CDTFA, an updated forecast was presented to the Council in April 2023. The impact was estimated to be a 73% decline in sales tax revenue, equating to an ongoing $30 million decrease. This shiKed the City’s financial outlook from a surplus to a structural deficit, where ongoing expenses exceed revenue. In October 2023, the CDTFA issued a formal leLer to the City providing the final audit results and the actual amount of money lost.

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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 transmiLal leLer submiLing 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.

All Funds Financial Schedules: This section provides financial information on projected revenues, expenditures, fund balances, and reserves for all funds.

General Fund Financial Schedules: This section provides financial information on projected revenues, expenditures, fund balances, and reserves for the General Fund. It also includes a long-term forecast of revenues, expenditures, and fund balance for the General Fund. Revenue and expenditure assumptions are discussed.

Departmental Operating Budgets: This section details historical and budgeted 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 one-time operational projects.

Non-Departmental Operating Budgets: This section details historical and budgeted expenditures for interfund transfers and debt service payments.

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. The fiveyear plan denotes funding sources and a description of each project. The City Council approves funding for capital projects yearly. 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.

California Department of Tax and Fee Administration - A state agency responsible for administering various taxes, fees, and surcharges in California. This includes the collection and administration of sales and use taxes, which is a major revenue source for the state and local governments.

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.

Deficit - Occurs when expenditures exceed revenues.

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.

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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 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.

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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.

Structural Deficit –The amount by which a government's expense is higher than its revenue received, regardless of the economic climate.

Subsidy – Supplemental resources provided to ensure adequate funding when anticipated expenditures exceed revenues.

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
CWP City Work Program
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
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GASB Governmental Accounting Standards Board
GFOA Governmental Finance Officers Association
HVAC Heating Ventilation and Air Conditioning
JPA Joint Powers Authority
LAIF Local Agency Investment Fund
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
Sample Revenues, Expenditures, and Fund Balance Table
Taxes – Money received from taxes such as sales, property, transient occupancy, and utility tax Licenses and Permits – Money received from license and permit fees Use of Money and Property – Interest earnings, and facility and concession rents Intergovernmental Revenue – Money received from federal, state, or local governments such as grants Charges for Services – Fees collected for services provided by City departments Fines and Forfeitures – Money received from fines and penalties FY 2024-25 Proposed Budget Budget Guide 60
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Miscellaneous Revenue – Money received from various sources such as donations, salvage, and legal settlements
Other Financing Sources – Money received from bond proceeds, fixed asset proceeds, and refundable deposits Interdepartmental Revenue – Interdepartmental service charges and transfers Total Revenues – Total of all revenue categories
Employee Compensation – Cost of full-time and part-time salaries and overtime Employee Benefits – Cost of employee benefits including CalPERS retirement, health insurance, and other benefits
Materials – All materials purchased for repair and maintenance, operational activities such as books, uniforms and recreation supplies, office supplies, and conference and training costs Contract Services – All legal, consulting, and other professional goods and services, contract repair and maintenance, utility charges, training and memberships, equipment rentals, insurance, and employment services
Cost Allocation – Cost of services from other City departments Capital Outlay – Expenditures for tangible fixed assets including land, buildings, vehicles, infrastructure, furniture, equipment, and City vehicles used in operation beyond one year Special Projects – One-time projects or costs
Other Financing Uses – Depreciation and refundable deposit expenses Debt Service – Principal and interest payments for outstanding debt Transfers Out – Transfers out to other City funds
Contingencies – Funds for unexpected expenses and emergencies (1.25% of budgeted materials and contract costs)
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 Costs – 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 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 seDlement 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 oKen 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 seLler, Elijah Stephens, a blacksmith from South Carolina, moved to the area—at this time, named simply ‘West Side’ and primarily owned by the government. AKer 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. SeLlers 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, aLacking the roots of the grapevines, killing the grapes, and puLing 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 aLracted 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.

AKer 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, spliLing 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 aLracted 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 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 beLer life for themselves and their families.

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Community Economic Profile
Cupertino, with a population of 57,368 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 a is mostly built-out city, the City of Cupertino focuses on business retention and revitalization, while at the same time, being supportive of redevelopment projects to bring in new investment.

Cupertino is world-renowned as the home to high-tech giants, such as Apple, Inc. and Amazon, 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 aLracting local and international students. The City’s proactive economic development efforts and a high-touch approach has resulted in an innovative environment for start-ups and growing companies to thrive, including Moxo, DURECT Corporation, Claspp, Mirapath, Aemetis Inc, Mist Systems, and many more. The City strives to retain our companies and aLract new ones through active outreach and a responsive, streamlined, and customer-oriented entitlement process.

Cupertino is excited to have a number of mixed-use development projects offering diverse retail and dining options, as well as providing additional housing opportunities to meet the needs of the growing community.

There are also quite a few development projects already entitled including: Westport Cupertino, Marina Plaza, Alan Row, and Canyon Crossing. Further, City Council recently approved the 283,000 square foot mixed Office/Commercial Apple development at 19191 Vallco Parkway.

Main Street
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The Main Street and Nineteen800 mixed-use developments continue to offer 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, HaiDiLao Hotpot Restaurant, Pineapple Thai, Pressed Juicery, Orangetheory Fitness, 85 Degree Bakery, Somi Somi, Sul & Beans, Kura Sushi, Vitality Bowls, Tan Cha, Koja Kitchen, Bishops Cuts/Colors, Capezio, Howard’s Shoes, Philz Coffee, Pacific Catch, Holder’s Country Inn, Koi Palace Contempo, and Meet Fresh. Housing, office, and the Residence Inn by MarrioL and Main Street Cupertino LoKs are available to support the thriving area. Benihana, Bowlmor, and Cupertino Ice Center also serve as long-time anchors.

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 (Brazilian Steakhouse), Daiso, Marukai Groceries, Harumi Sushi, La Patisserie Bakery, Beard Papa’s, Legend’s Pizza, Icicles, Kong’s Tofu & BBQ, and One Pot Shabu Shabu to name a few.

The shopping center improvements to Cupertino Village reflect building upgrades and renovations, newly constructed buildings, parking, and open space. The shopping center, located in the northeast portion of the city, is home to 99 Ranch Market, Duke of Edinburgh Pub & Restaurant, Ume Tea, Tofu Plus, Kira Kira Beauty, Ten Ren Tea, Fantasia Coffee & Tea, Happy Lemon, Shanghai Family Restaurant, and many other Asian restaurants, bakeries, and shops. The property owners have also received approval to construct a new fullservice 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 food and beverage establishments to serve residents and the local workforce. There are seven hotels providing over 1,000 rooms, to serve the area: The AloK Cupertino, Cupertino Hotel, Hilton Garden Inn, HyaL House, Juniper Hotel operated by Curio, MarrioL Courtyard, and the 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 Safeway, Starbucks, Ulta Beauty, Ross Stores, Pet Club, Michael’s, FedEx, and numerous restaurants, such as Fish’s Wild, Pho Hoa Noodle Soup, Yayoi Teishoku Japanese Restaurant, and Chipotle.

The City recently approved second modifications to the Rise Development. Formerly the Vallco Town Center Development, the Rise is a mixed-use housing development with 2,669 units, of which 890 units are affordable to lower income households. The project also includes 47 townhomes, approximately 1.95 million square feet of office space, 226,000 square feet of retail space, and at grade open space areas.

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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 offer the public a place to learn, explore, and shop.

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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 public participation for the Council meetings is in-person and online.

The City has over 200 authorized full-time benefited employee positions. Departments include:

Administration
Administrative Services
Community Development
Council and Commissions
Innovation and Technology
Parks and Recreation
Public Works
Public Safety (Provided by Santa Clara County Sheriff’s Department and Santa Clara County Fire District)
Assisting the City Council are several citizen advisory commissions and committees, including:

Arts and Culture Commission
Audit Committee
Bicycle Pedestrian Commission
Housing Commission
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 interested residents can apply for the positions. For more information, visit cupertino.org/commissions.

Housing
Based on data from Redfin, the median sales price for all home types was $3,300,000 for March 2024. 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
Electric Silicon Valley Clean Energy 844-474-7823
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 2023-2024 Annual Report:

Cupertino: $32,303,325,534
County: $661,164,212,366
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.

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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 https://www.vta.org/go/routes:

Route 23 San Jose (De Anza College – Alum Rock via Stevens Creek Blvd) Route 25 San Jose (De Anza College – Alum Rock via Valley Medical Center) Route 51 (Moffett Field - West Valley College)
Route 53 (Sunnyvale Transit Center – Santa Clara Transit Center) Route 55 De Anza – Great America
Route 56 (Lockheed Martin - Monterey & Old Tully)
Express 101 (Camden Ave & Hwy 85 - Stanford Research Park) Rapid 523 (San Jose State – Lockheed Martin via De Anza) 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.

Ridesharing: SV Hopper is a convenient app-based, on-demand rideshare program that provides transportation anywhere in Cupertino and to select destinations outside of the City such as southern Santa Clara and major Caltrain Stations in Mountain View, Sunnyvale, and Santa Clara. For more information, visit https://city.ridewithvia.com/hopper.

Sister Cities
The 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.

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 approximately 13,500 students in a 26 square mile area that includes Cupertino and portions of five other cities. The district has 17 elementary schools, one K-8 school, and five middle schools. 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 over 9,000 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 seLings and customized training arranged by employers. Several De Anza programs encourage FY 2024-25 Proposed Budget Community Profile 73
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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
Neighborhood Block Leader Program
Block Leaders are engaged Cupertino residents who go the extra mile to build a more connected and resilient community. The program shares City news, hazards, and events with Block Leaders, provides support for community building, and organizes quarterly meetings. Quarterly meetings invite City staff from across departments so that volunteers and residents are kept up to date on new policies, programs, and projects.

Volunteers facilitate information sharing between the City and residents, host community gatherings such as emergency kit building workshops, and build a sense of trust and safety in their neighborhoods. To become a Cupertino Block Leader, please contact the Block Leader Coordinator at [email protected].

Neighborhood Block Leader Program
Neighborhood Watch
Stay safe, get connected, and learn how to prevent crime with Cupertino Neighborhood Watch. Neighborhood Watch is a partnership between residents, the City, and the Sheriff’s Office to reduce crime in our communities through education. 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 [email protected].

Affordable Housing: BMR (Below Market Rate) Program
The City of Cupertino requires that 15% of all new rental construction and 20% of ownership construction be affordable to households below 120% of the County median income. Rental units are made available to very low and low-income households, while ownership units are made available to median and moderate-income households. There are currently 141 units in the City’s BMR rental portfolio, and 119 homes in the City’s BMR ownership portfolio.

The City of Cupertino contracts with Rise Housing Solutions to screen and place qualified households in BMR units. Rise Housing maintains a waitlist of interested persons for these BMR units, and the waitlist application opens annually during the month of October. For more information visit Rise Housing at www.risehousing.com, email [email protected], or call (415) 301-5448 (messages returned within 36- 48 hours).

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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 aLention? 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.

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Community Statistics
Facts and Figures
Population in City Limits 57,368
Average Household Income $288,690
Average Age 53
Registered Voters 33,272
Democrats 15,577
Republicans 4,521
American Independent 536
Other 401
No Political Party Designated 12,237
Claritas 2024 Estimates and County of Santa Clara Registrar of Voters as of April 23, 2024 Top 25 Sales Tax Producers 2023 (in Alphabetical Order) 99 Ranch Market
Alexander’s Steak House
Apple
Argonaut Window & Door
Benihana
BJ's Restaurant & Brewhouse
California Dental Arts
Chevron
Cupertino Car Wash
De Anza Car & Gas
Galpao Gaucho
Great Gas Cupertino
Haidilao Hot Pot
Insight Direct
Keysight Technologies
Kura Revolving Sushi Bar
Lazy Dog Cafe
Mirapath
Ross
Rotten Robbie
Safeway
Shane Company
Target
TJ Maxx
Valero
Whole Foods Market
HdL Companies 4Q 2023 (October - December) 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.

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.

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, 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 50 and over, including volunteering and various classes such as exercise, computer, English as a second language, and cultural and special interest. The center also coordinates trips, socials, and monthly luncheons. 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, trees, and seating areas. City Council meetings and Planning 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, and 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 11 a.m. – 3 p.m. Tuesday 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 hLp://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 Cupertino. One is held on Fridays from 8:00 a.m. to 12:00 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 over 35 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 Tuesday through Thursday, from 10:00 a.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, PiccheLi 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
Adopted Budget
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.

Budget Process
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
Development
Budget development begins in December with the base budget, where departments review and adjust ongoing operational costs. The base budget does not include any one-time initiatives. Departments must justify all new costs each year.

Proposal
Every year in March, departments prepare budget proposals for new ongoing or one-time initiatives. These proposals are reviewed by Finance staff, who use data from current and past years to evaluate their feasibility.

The city's long-term financial forecast is also taken into account to ensure that budget decisions align with the city's financial goals.

The City Manager, with the assistance of the Director of Administrative Services and Budget Team, reviews the proposals and selects the proposals to be included in the Proposed Budget. The Proposed Budget is published by May 1st.

In May, staff presents the Proposed Budget to the City Council during a proposed budget study session.

Commissions, commiLees, community organizations, and the public are all welcome to review and provide feedback on the Proposed Budget. During the session, City Council members have the opportunity to ask questions, offer suggestions, and provide recommendations to staff on the Proposed Budget.

Adoption
In June, the City Council holds a public hearing to consider the Proposed Budget presented by staff. At this hearing, an updated version of the Proposed Budget is presented, and staff addresses any questions or concerns that were raised during the study session.

AKer the presentation, City Council members deliberate and vote to adopt the budget. The adopted budget authorizes expenditures for the specific activities and funds outlined in the budget. This ensures that the city has a clear plan for how to allocate its resources in the upcoming fiscal year.

The adopted budget goes into effect on July 1st, marking the beginning of the new fiscal year.

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Monitoring
AKer 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.

In addition to the annual proposed and adopted budgets, staff reports to the City Council quarterly. Quarterly reports update the City Council on any changes from July 1 through the end of the quarter. Quarterly reports help:

Compare budget versus actuals.

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.

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).

Amendment
AKer the budget is adopted, a department may request a change through a budget amendment. A budget amendment is required to:

Allocate additional appropriations during the fiscal year Reallocate appropriations between line items during the fiscal year 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. Transfers between fund types need approval by City Council.

City Council approval is also required for additional appropriations from fund balances or from new revenue sources.

Carryover
Unexpended and unencumbered appropriations expire at the end of the fiscal year. A budget carryover allows an unspent appropriation to be carried over into the next fiscal year. A department may request a budget carryover for a project or purchase that is not expected to be completed in the current fiscal year. The department may only use the budget carryover for its original purpose.

Budget Reporting Cycle
The following chart illustrates the City’s budget reporting cycle.

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Citizen Participation
The budget study session and budget hearings are public meetings where citizens are allowed to comment on the budget. The public can also provide feedback on budget format to the Audit Committee.

This year, City Staff conducted in-person budget related outreach (Community Engagement Booths and Community Budget Focus Groups) at various locations throughout the City during the month of April 2024.

These outreach events educated the community on budget-related topics in front of the Cupertino Library and at Cupertino's Earth and Arbor Day Festival. Additionally, the City hosted two Community Budget Meetings which tackled crucial discussions about the City’s budget deficit (February 2024) and discussed the City’s financial forecast and potential service-level reductions (April 2024).

OpenGov Financial Transparency Portal
In order to facilitate understanding and transparency of the budget document, the City presents budget information through OpenGov, an online tool that provides users with different views of the City’s budget data by fund, department, revenues, and expenditures. The tool can be accessed by visiting cupertino.org/opengov.

The City invites you to use the online tool to:

Search the current year’s budget and financial data.

View trends in revenues and expenditures over time.

Drill down into expenses by department or account type.

Display the data as graphs or charts.

Download into Excel.

Share with friends using email or social media.

Send comments directly to the City online.

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Structure of City Finances
Cost Accounting
Fund costs are allocated to user departments or operating funds based on salaries, equipment and soKware purchase price, actuarial studies, and actual and projected service level. 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. Please view the Cost Allocation Plan and 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.

Cost Allocation Plan
All overhead costs are allocated to the appropriate program within the limits of local, state, and federal laws.

Beginning in FY 2013-14, the City allocated indirect and overhead costs based on a Cost Allocation Plan (CAP).

In FY 2015-16, Matrix Consulting Group developed a full CAP for the City. Matrix Consulting Group developed the plan based on "Generally Accepted Accounting Principles" (GAAP) and indirect cost allocation methods defined by the federal Office of Management and Budget's (OMB) Circular A-87. Generally, the CAP is updated every five to seven years. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023, which is included in the FY 2024-25 budget.

In addition to the direct cost of providing services, the City has indirect costs. Indirect costs include shared expenses where a department provides support to other departments (e.g., legal, finance, human resources, IT, facilities, and maintenance). The CAP allows the City to understand the full cost of providing specific services to the community more accurately. For example, the full cost of the Quinlan Community Center includes its direct costs (e.g., salaries, benefits, materials, and contracts) plus its indirect costs (e.g., finance, human resources, and IT). The CAP helps the City analyze the full cost of the Quinlan Community Center as if it were a stand-alone business that had costs for services such as finance, human resources, and IT.

The CAP distributes the allowable costs of central service programs to receiving programs. Central service programs (e.g., City Manager's Office, City ALorney's Office, Finance, Human Resources, Innovation and Technology, and City Hall building maintenance) provide support to other programs. Receiving programs, also known as grantees, receive support from central service programs.

Method
The CAP follows the double step-down method, which uses two steps to allocate costs fully. In the first step, the costs of central service programs are allocated to other central service programs and receiving programs. In the second step, the total costs (including costs allocated in the first step) of central service programs are allocated to the receiving programs only. Revenues are allocated directly to the central service program providing the service.

The CAP allocates costs to receiving programs based on an allocation base, which quantifies the use of each service. For example,
Human Resources benefits costs are allocated based on each program's number of FTE.

Accounting costs are allocated based on each program's number of financial transactions.

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IT costs are allocated based on the number of computer and mobile devices assigned to each program.

The CAP is updated annually. The FY 2024-25 CAP was prepared using data from FY 2022-23.

Internal Service Funds
In addition to support services, all eligible funds are charged a prorated share of the costs for Innovation & Technology, Vehicle & Equipment Replacement, and Compensated Absences.

Transfers
In addition to the allocation of costs between funds, the City also makes transfers from the General Fund to various funds, which provide subsidies and resources to the receiving fund to support operating, debt service, and capital project costs. General Fund subsidies are evaluated annually to ensure that funds outside of the General Fund end the year with sufficient fund balance. Typically, transfers are made to Special Revenue and Enterprise Funds that require subsidies due to their revenues falling short of full program costs. Furthermore, the City has recurring transfers to the Debt Service Fund to fund the costs associated with the annual debt payment.

Basis of Budgeting
The 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 as the basis of accounting.

Governmental Funds
The Governmental Funds, which include the General, Special Revenue, Debt Service, and Capital Projects 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 thereaKer 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.

Proprietary Funds
The Proprietary Funds, which include 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 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 they are levied. Grants are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Departments, Divisions, and Programs
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 aLributable to any specific division), and Capital Improvement Program. 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 the City's auditors according to generally accepted accounting principles (GAAP) set by the Governmental Accounting Standards Board (GASB). The City's auditor was Crowe, LLP from FY 2016-17 to FY 2021-22. Beginning FY 2022-23, the City's auditor is The Pun Group, LLP.

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Fund Structure
In governmental accounting, a state or local government is not considered a single entity but is instead viewed as a collection of individual business units known as 'funds.' This approach is known as fund accounting, which emphasizes accountability rather than profitability.

Under fund accounting, each fund is a self-contained set of accounts that are segregated for specific purposes in accordance with laws, regulations, or other limitations. This system ensures that funds are used for their intended purpose and that there is transparency in the use of public funds.

The City's finances are structured into a range of funds that serve as the primary accounting and reporting entities in governmental accounting. These funds are broadly categorized into two groups: Governmental Funds and Proprietary Funds.

Governmental Funds
Governmental Funds are used to account for the City's general operations and other activities financed by taxes, grants, and other governmental resources. These funds include the General Fund, Special Revenue Funds, Capital Projects Funds, and Debt Service Funds. They are accounted for under the modified accrual basis of accounting.

General Fund
The General Fund is the primary operating fund for governmental services. The General Fund is a taxsupported fund.

General Fund Purpose
100 General The General Fund is used to pay for core services such as public safety, parks and recreation, 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 sales tax, property tax, franchise fees, charges for services, and a variety of other discretionary sources.
130 Investment Accounts for activities related to the City's investment portfolio.

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 Storm Drain, Environmental Management/Clean Creek, Community Development Block Grant, BMR Housing, Transportation, and Park Dedication funds.

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Special Revenue Funds Purpose
210 Storm Drain
Improvement
Accounts for the construction and maintenance of storm drain facilities, including drainage and sanitary sewer facilities. Projects are funded by the Capital Reserve.
215 Storm Drain Accounts for revenues from developers as a result of connections to the storm drainage sewer system.
230 Environmental
Management/Clean
Creek/Storm Drain
Accounts for activities related to operating the Non-Point Source Pollution Program. Revenues are from parcel taxes.
260 Community
Development Block Grant
Accounts for the Federal Housing and Community Development Block Grant (CDBG) Program activities. CDBG is a federally funded program for housing assistance and public improvements.
261 HCD Loan Rehab Accounts for activities related to Community Development Block Grant (CDBG) rehabilitation loans.
265 BMR Housing Accounts for activities related to the Below Market Rate (BMR) Housing Program. Revenues include BMR Housing Mitigation Fees collected from developers to mitigate the impact of housing needs. Monies in this fund are governed by the program's rules.
270 Transportation Accounts for the City's gas tax, vehicle registration fees, and grant revenues and expenditures related to the maintenance and construction of City streets.

All revenue in this fund is restricted exclusively for street and road purposes, including related engineering and administrative expenditures. 271 Traffic Impact Accounts for development impact fees to ensure that new development and redevelopment projects pay their "fair share" to mitigate traffic impacts. 280 Park Dedication Accounts 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. Revenues are restricted for the acquisition, improvement, expansion, and implementation of the City's parks and recreation facilities.
281 Tree Accounts for revenues from in-lieu tree replacement fees and tree damage and removal fees. The revenues are transferred to the Street Tree Maintenance program to pay for new and replacement trees.

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Debt Service Funds
Debt Service Funds account for financial resources that are restricted, commiLed, or assigned to expenditures for and payment of principal and interest.

Debt Service Funds Purpose
365 Public Facilities
Corporation
Accounts for the payments of principal and interest on certificates of participation issued to provide for the financing of the Civic Center, Library, Wilson Park, Memorial Park, and other City facilities.

Capital Projects Funds
Capital Projects Funds account for the acquisition and/or construction of major capital facilities.

Capital Projects Funds Purpose
420 Capital Improvement
Projects
Accounts for activities related to the acquisition or construction of major capital facilities.
427 Stevens Creek Corridor
Park
Accounts for the design and construction of the Stevens Creek Corridor Park projects.
429 Capital Reserve Reserves to fund future capital improvement projects.

Proprietary Funds
Proprietary Funds are used to account for the City's ongoing business activities that are similar to those of a private enterprise. These funds include the Enterprise Funds and Internal Service Funds. They are accounted for under the full accrual basis of accounting.

Enterprise Funds
Enterprise Funds are for specific services funded directly by fees charged for goods or services. Enterprise Funds include the Resource Recovery, Blackberry Farm, Sports Center, and Recreation Program funds.

Enterprise Funds Purpose
520 Resource Recovery Accounts for activity related to the collection, disposal, and recycling of solid waste. A private company has been issued an exclusive franchise to perform the services.
560 Blackberry Farm Accounts for activities related to operating the City-owned golf course. 570 Sports Center Accounts for the operation and maintenance of the Cupertino Sports Center. 580 Recreation Program Accounts for activities of the City's community center and park facilities.

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Internal Service Funds
Internal Service Funds are 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, Workers’ Compensation, Vehicle and Equipment Replacement, Compensated Absences & Long-Term Disability, and Retiree Medical funds.

Internal Service Funds Purpose
610 Innovation &
Technology
Accounts for the activities related to the maintenance and replacement of the City's technology infrastructure. Equipment is depreciated based on the acquisition or historical costs for the useful life of the asset using the straightline method. 620 Workers' Compensation Accounts for claims and insurance premiums related to workers' compensation.
630 Vehicle/Equipment
Replacement
Accounts 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.
641 Compensated Absences
& Long-Term Disability
Accounts for accrued leave payouts and the long-term disability insurance program.
642 Retiree Medical Accounts for funds set aside for Other Post-Employment Benefits (OPEB).

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Department/Fund Relationship
The following table illustrates the relationship between the City’s departments and funds. It also shows which funds are major funds.

Major funds as identified in the City’s recent Annual Comprehensive Financial Reports Funds are consolidated and presented as one fund, Housing Development Special Revenue Fund, in the City’s Annual Comprehensive Financial Reports
1 2
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Major funds as identified in the City’s recent Annual Comprehensive Financial Reports Funds are consolidated and presented as one fund, Housing Development Special Revenue Fund, in the City’s Annual Comprehensive Financial Reports
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Balanced Budget Policy

PURPOSE
The purpose of this policy is to ensure that the City has a balanced budget that is sustainable in the long term.

It aims to establish a clear definition of a balanced budget, promote a commitment to achieving this balance, and ensure transparency and disclosure when there is deviation from the balanced operating budget.

SCOPE
This policy applies to all operating funds of the City. This policy excludes Capital Projects Funds and Debt Service Funds.

POLICY
Statutory Balanced Budget
At a minimum, the City shall adopt a statutory balanced budget, where the City’s use of resources for operating purposes does not exceed available resources for the fiscal year.

Structurally Balanced Budget
The City shall adopt a balanced budget where operating expenditures do not exceed operating revenues in the ten-year forecast. The budget must be balanced not only during the current operating period but also in the future, which is referred to as a structurally balanced budget.

Recurring revenues are the portion of a government's revenues that can reasonably be expected to continue year to year, with some degree of predictability. Property taxes are an example of recurring revenue. Proceeds from the sale of property are an example of non-recurring revenue. Recurring expenditures appear in the budget each year. Salaries, benefits, materials and services, and maintenance costs are examples of recurring expenditures. Capital asset acquisitions are typically non-recurring.

Balanced Budget Calculation
To calculate a balanced budget, the following factors shall be included: operating revenues, operating expenditures, and interfund transfers. However, capital costs shall be excluded from the calculation. The use of reserves and fund balance may be considered.

The accrual basis will be used to define revenues and expenditures.

Use of Fund Balance
If a structurally balanced budget is not possible for the City at a given time, reserves and fund balance may be used to balance the budget. However, this should only be done in the context of a plan to return to structural balance, replenish fund balance, and remediate the negative impacts of any short-term balancing actions that may be taken. The plan should clearly specify the time period over which these actions will occur.

Noncompliance with Balanced Budget Policy
The policy permits noncompliance during the early stages of an economic downturn so that services can be reduced in an orderly fashion.

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Responsibility for a Balanced Budget
The City Manager is responsible for making any necessary decisions on whether or not a budget is in balance.

They shall take appropriate action to bring the budget into balance if adjustments are needed during the fiscal period.

Revised April 2023
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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 Programs Policy

PURPOSE
To establish a Capital Improvement Programs (CIP) Policy to assist in future budget projections.

SCOPE
All anticipated CIP projects for the current fiscal year plus four additional fiscal years.

POLICY
The City will prepare an annual CIP for the current fiscal year that includes a projection of anticipated programming and funding for a total of five fiscal years.

Projects included in the CIP will have information on the need for the project (project justification), description and scope of work, total cost estimates, future operating and maintenance impacts, and funding sources.

The project justification will incorporate information on the factors that affect the prioritization of the project.

The factors to be considered include (but are not limited to) the Health & Safety of the community, continuation of ongoing work, Community requests, General Plan and Master Plans' directives, staffing and operational demands, sustainability and resiliency, and internal and external funding viability.

Changes to the CIP such as addition of new projects, significant 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 facilities 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.

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.

Revised April 2023
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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. SoKware 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); enterprise software;
workgroup software; and
broadcast video and audiovisual equipment.

Laptops and associated peripherals, desktop soKware not being utilized across a workgroup or enterprise, 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.

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 FY 2024-25 Proposed Budget Financial Policies 103
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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 (based on license count) 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.

Broadcast Video and Audiovisual Equipment/Systems shall be repaired or replaced when determined no longer functional. Replacement will occur on average aKer 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.

Revised April 2023
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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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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 commiLed and unassigned fund balance (General Fund only) in each fund for the ability to meet the following economic uncertainties:

Economic Uncertainty – $21,329,593 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
Sales Tax Repayment Reserve – $77,554,500 and represents the funds commiLed for potential sales tax repayments. The result of the California Department of Tax and Fee Administration (CDTFA) audit of a City taxpayer is expected to have significant financial implications for the City’s operations. To prepare for a potential adverse CDTFA decision and the uncertain outcome of the anticipated legal challenge, the City established a General Fund Sales Tax Repayment Reserve. The purpose of this reserve is to set aside funds for potential sales tax repayments to the CDTFA. An initial allocation of $56.5 million corresponds to sales tax revenue received between April 2021 and June 2023 that the City may need to repay to the CDTFA. All or part of the funds will be transferred to General Fund Unassigned if the City’s efforts to contest CDTFA’s decision are ultimately successful, in whole or in part.

This reserve can be augmented when additional disputed sales tax revenue is received.

PERS – $19,088,859 and represents the funds restricted for the City's pension obligations. In response to the increasing retirement costs based on actuarial forecasts, the City created a secondary pension trust to help stabilize the impact of pension cost volatility on the City's operating budget. To fund this secondary trust, the City made an initial contribution. AKer that, the annual contributions are determined based on the difference between CalPERS' current discount rate and a more conservative rate determined by the City. This difference will then be transferred to the pension trust and used exclusively for the benefit of members in the plan.

The primary goal of establishing this secondary trust is to ensure that the City can continue to provide its employees with the retirement benefits they have earned while maintaining fiscal responsibility. By using a more conservative rate for calculating contributions, the City can beLer anticipate and manage pension costs and mitigate potential negative impacts on the City's budget.

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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.

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 eligibility requirements such as energy or water efficiency. If the rebates were not initially budgeted, they are categorized as commiLed 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:

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Funding Priority Reserve Reserve Level Escalator Description

GENERAL FUND
1 Economic Uncertainty
Reserve $21,329,593
GF Budgeted
Operating
Expenditures GF
Budgeted Revenue
For economic
downturns and major
revenue changes.
2 Sales Tax Repayment
Reserve $77,554,500
Receipt of additional
sales tax revenue in
dispute
For potential sales tax
repayments to the
CDTFA.
3 PERS $19,088,859 Budgeted Citywide
Retirement Costs For pension costs.
4 Sustainability Reserve $127,891 GF Budget Revenue
For future
sustainability
projects/programs.
5 Unassigned $500,000
Budgeted GF
Operating
Expenditures
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.

As of June 30, 2023
Rounded to the nearest hundred thousand
Excludes Transfers Out
Excludes the use of reserves
Changes to CommiGed Fund Balance – All reserves listed in this policy, with the exception of the PERS restricted reserve, are classified as CommiLed Fund Balance under GASB Statement No. 54. CommiLed 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 commiLed 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 commiLed fund balances listed in this policy, a recommendation will be brought to City Council for approval and a plan to replenish the commiLed balance will be developed in conjunction with its use.
1 2
3 4
4 3
1 2
3 4
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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 Reserve
2) Sales Tax Repayment Reserve
3) PERS
4) Sustainability Reserve
5) Unassigned
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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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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 $20,000 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, or endowment funds.

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
Number of Cupertino residents served vs. number of non-Cupertino residents served Availability of the program/project/event to the entire Cupertino community Community need for the program/project/event
Alignment with Cupertino General Plan Principles
Uniqueness of the program/project/event
Lack of duplication in service in Cupertino
Level of collaboration if a duplicated service
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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:

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.

If requested, recipients must provide full financial statements for the organization.

Festivals currently receiving funding through Festival Fee waivers may not apply for funding through the Community Funding Grant Process for the same festival Admission to or participation in the event must be "free of charge" 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 aLend 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 aLend the City Council Meeting where their applications will be discussed.

5. Grant recipients shall submit a wriLen 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.

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Due by the 15th business day of July following the Fiscal Year in which grant funds are disbursed.

Failure to submit a wriLen 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.

Revised November 15, 2022
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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 CommiLee reviews the policy and acts as an oversight commiLee on investments. The policy directs that an external auditor perform agreed-upon procedures to review City compliance with the policy.

The Audit Committee reviewed and accepted the current Investment Policy on April 22, 2024. The City Council will consider the City's Investment Policy in May 2024.

The City Investment Policy is available here.

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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 puLing a cap on the total proceeds of taxes that may be appropriated each year.

Proposition 111 and Senate Bill 88, approved by California voters in June of 1990, offered cities more flexibility in choosing inflation and population factors to calculate the limit.

The following chart and table show the appropriations limit and actual expenditures subject to the appropriations limit.

Actual Expenditures from the Annual Comprehensive Financial Report (ACFR) 1 1
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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.

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: 4.44% Population Factor
(B) Percent Change in County Population: -0.25%
(C) Percent Change in City Population: -0.87%
The City multiplied the FY 2022-23 appropriations limit by Price Factor (A) and Population Factor (B) to calculate the FY 2023-24 appropriations limit, as shown below:

FY 2022-23 Appropriations Limit $122,756,522
Price Factor (A) 1.0444
Population Factor (B) 0.9975
FY 2023-24 Appropriations Limit $127,886,394
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The City’s FY 2023-24 appropriations limit is $127.9 million, an increase of $5.1 million, or 4.2%, from the FY 2022-23 limit of $122.8 million. The California Department of Finance will publish the price and population data to calculate the City’s FY 2024-25 appropriations limit in May 2024. As a result, the FY 2024-25 appropriations limit will not be known until May 2024 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 2022-23 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.

Description Amount Formula
Secured Property Assessed Value, Net of Exempt Real Property (1) $31,157,956,858 Adjusted Valuation - 25% of Assessed Valuation (2) $7,789,489,215 (1) x 25% Debt Limit - 15% of Adjusted Valuation $1,168,423,382 (2) x 15% Total City Bonded Debt (3) $18,020,000
Less: Certificates of Participation Not Subject to Debt Limit (4) $(18,020,000) Amount of Debt Subject to Limit - (3) - (4)
Legal Debt Margin $1,168,423,382
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All Funds Financial Schedules
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Financial Overview by Fund
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Flow of Funds Chart (Sankey)
The three most important things to learn from this chart:

1. The chart above demonstrates how revenues (left to right) and expenditures (right to left) flow out of and into each type of City fund.

2. Where revenues meet expenditures at the center of the chart (fund line type), a gap to the left is indicative of expenditures exceeding revenue and a decrease in fund balance/savings for that type of fund.

3. A gap to the right is indicative of an increase in fund balance/savings for that type of fund.

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All Funds Summary
This section provides information on the FY 2024-25 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. For descriptions of funds, see Financial Policies: Fund Structure.

Revenue Estimates
Estimates for FY 2024-25 fund balance and individual revenue accounts are based upon a careful examination of the collection history and paLerns 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 and/or internal factors outside of the City's control.

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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 have increased by $5.6 million. Use of Money & Property is increasing due to higher projected interest earnings. Intergovernmental is increasing due to increased Measure B revenue and federal and state grants.

Expenditures
Expenditure uses have increased by $3.6 million. Capital Outlays are higher due to more Capital Improvement Program (CIP) projects and increased Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023. As part of service level reductions, departments decreased their contract services and special projects.

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 increased Measure B and interest revenues.

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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 ten 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.

Expenditures
Expenditure uses are relatively unchanged from the last fiscal year. The $2.7 million in expenditures represents the annual payment of principal and interest for the City’s debt.

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 unchanged from the 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 have increased by $11.6 million due to the transfers in for Capital Improvement Program (CIP) projects. As a result of the revenue shortfalls stemming from the CDTFA audit, the annual transfers from the General Fund to the Capital Reserve have been eliminated until FY 2029-30.

Expenditures
Expenditure uses have increased by $17.8 million due to more CIP projects this year.

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.

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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
Projected revenue sources remain relatively unchanged from the prior fiscal year. In FY 2023-24, as a result of anticipated revenue shortfalls due to the CDTFA audit, transfers from the General Fund to the Enterprise Funds have been reduced as part of an expenditure reduction strategy aimed at decreasing General Fund subsidies of Enterprise Funds. Transfers to the Enterprise Funds have resumed in FY 2024-25.

Expenditures
Expenditure uses have decreased by $0.4 million due to decreases in contract services.

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 due to revenues being lower than expenditures.

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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 Information & Technology, Vehicle & Equipment Replacement, Workers' Compensation, Compensated Absences & Long-Term Disability, and Retiree Medical funds.

Revenue
Revenue sources have increase by $2.3 million as a result of an increase in transfers in from the General Fund.

In FY 2023-24, the City resumed transfers to the Retiree Medical Fund because the City's Other PostEmployment Benefits (OPEB) plan is below 100% funded.

Expenditures
Expenditure uses is relatively unchanged from the prior fiscal year.

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.

Net positions is relatively unchanged from the prior fiscal year.

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All Funds Revenues
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All Funds Expenditures
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All Funds Expenditures by Department
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All Funds Fund Balance
For descriptions of funds, see Financial Policies: Fund Structure.

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General Fund Financial Schedules
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General Fund Contribution Schedule
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General Fund Summary
The General Fund is the City's main operating fund, responsible for providing essential services such as law enforcement, public works, community development, park maintenance, code enforcement, and administrative support. It is funded by discretionary sources such as property tax, sales tax, transient occupancy tax, and utility tax. The General Fund is typically reserved for operations that lack other dedicated funding sources, while operations such as street maintenance, solid waste collection, and recreation are funded from other sources, detailed in the All Funds Summary section of this document.

For FY 2024-25, General Fund revenues are estimated to be $89.8 million, reflecting a $9.5 million or 11.9% increase from the previous year's Adopted Budget. General Fund expenditures are estimated to be $89.9 million, a $3.9 million or 4.5% increase from the previous year's Adopted Budget. Since revenues are slightly short of expenditures, the estimated use of fund balance is $0.1 million. The budget is just short of balancing and staff recommends using unassigned fund balance to fill the small gap in funding this year. The General Fund's ending fund balance is projected to be $149.9 million.

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General Fund Revenues
FY 2024-25 General Fund revenue sources have been carefully evaluated by considering collection history, seasonal paLerns, and economic performance. These estimates are based on projected increases or decreases in activity and receipts in the upcoming year. It is important to note that each revenue source can be affected by external or internal factors beyond the City's control.

As shown in the chart below, FY 2024-25 revenues are estimated at $89.8 million, a $9.5 million or 11.9% increase from the FY 2023-24 Adopted Budget. This increase is primarily due to an increase in Charges for Services related to Cost Allocation expenses, an increase in Other Service Fees related to the City's community shuLle program revenue, and an increase in the City's investment earnings. These revenue categories will be discussed in greater detail in the following sections.

The majority of Cupertino's General Fund operating revenues are generated by property taxes (37%), charges for services (17%), sales taxes (13%), and transient occupancy taxes (9%). The chart below illustrates the sources of General Fund revenue by category.

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The FY 2024-25 General Fund revenue estimates are discussed by category below.

Sales Tax
Sales and Use Tax, commonly known as the "sales tax," consists of two components: an excise tax levied on retailers for selling tangible personal property, and an excise tax applied to purchases from out-of-state vendors that are not required to collect tax on their sales. The revenue generated from sales and use taxes collected within Cupertino's boundaries is allocated by the State to various agencies, with the City receiving one percent, as depicted in the chart to the right. The City considered the ¼ cent sales tax revenue source imposed on local governments. However, the City decided not to proceed with this item for the 2024 election due to unknown conflicting proposals.

The City's sales tax revenue comes from five primary economic categories: business-to-business (including electronic equipment and soKware manufacturers and distributors), state and county pools, restaurants and hotels, general consumer goods, and fuel and service stations and other. The California Department of Tax and Fee Administration (CDTFA) manages the collection and administration of sales and use taxes, which is a significant source of revenue for the state and local governments. Businesses are required to register for a sales tax permit and collect taxes from their customers, and the collected taxes are then remiLed to the CDTFA for distribution to the relevant local governments. In addition, the CDTFA conducts audits to ensure tax compliance by businesses. The City receives a portion of the sales tax revenue generated within its boundaries, which funds a wide range of City services and programs.

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In December 2021, the CDTFA informed the City of an audit that would be conducted on one of its taxpayers.

The City was verbally informed in March 2023 of the CDTFA's preliminary determination that tax dollars had been misallocated to the City, and potential impacts on City funds were provided. The CDTFA is expected to provide the City with a formal leLer in the next four to six months, including the final results of the audit and the actual amount of money lost.

Following discussions with the affected taxpayer and the CDTFA, an updated forecast was presented to the Council on April 13, 2023. The impact was estimated to be a 73% decline in sales tax revenue, equating to an ongoing $30 million decrease. This shiKed the City’s financial outlook from a surplus to a structural deficit, where ongoing expenses exceed revenue. In particular, sales tax revenues are anticipated to amount to $11.4 million in FY 2023-24, marking a decline of 67% from FY 2022-23 actuals.

Property Tax
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.

In 1978, voters approved the passage of Proposition 13, which froze property tax rates and limited the amount FY 2024-25 Proposed Budget General Fund Financial Schedules 142 696
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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.

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.

Additionally, the Educational Revenue Augmentation Fund (ERAF), enacted in July of 1992 by the State Legislature to shiK local tax revenues from cities, counties, and special districts to a State control ERAF, absorbs the shift-back of the TEA.

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The City experienced a net taxable value increase of 4.6% for the FY 2023-24 tax roll. The bulk of the increase was due to increases in residential properties by $1.3 billion, or 6.8%. This category makes up 62.4% of the net taxable value. Unsecured property tax increased by $76 million, or 7.1%. This category makes up 3.5% of the net taxable value. Lastly, commercial property values decreased by $91.5 million, or 1%. This category makes up 28.3% of the net taxable value.

The FY 2024-25 Property Tax revenue estimate is based on 2023-24 values and estimated changes according to HdL, the City's property tax consultant. HdL also provides insight into real estate trends for calendar year 2023, the year that influences the 2024-25 property values enrolled. In this calendar year, there were continued interest rate increases and a continuation of the downturn in the real estate cycle when interest rate increases were implemented to slow the rate of inflation. Throughout the 2023 calendar year, the number of properties offered for sale in comparison to those offered in 2022 trend down by 25%-30%. Homes are sold for more than the currently taxed value but the differential between the assessor’s enrolled value for taxation the prior year and the sale price paid in the 2023 calendar year is not as high as it has historically been for the past 3-year period.

Transient Occupancy Taxes
Transient occupancy taxes (TOT) are levied on hotels and short-term room rentals located in the City at 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 budgeted to end FY 2023-24 at $7.5 million, a 6.2% increase from FY 2022-23 actuals. The anticipated FY 2024-25 Proposed Budget General Fund Financial Schedules 144 698
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increase is due to increased travel and the return of employees to their places of work. An increase to $7.7 million is anticipated in FY 2024-25, a 3.1% increase from the FY 2023-24 Adopted Budget. Historical growth in TOT revenues is due to new hotels. Since 2015, the following hotels have been added to the City: MarrioL at Main Street and HyaL House at Vallco. Staff will continue to monitor this revenue source and bring forward adjustments and recommendations as necessary.

Utility Tax
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.

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 received from telecom services, voters passed a measure in 2009 to update the ordinance to the changing technology in this area.

In FY 2024-25, budgeted revenues are expected to increase 25.0% to $4.1 million compared to the FY 2023-24 Adopted Budget. This is primarily driven by a rate increase for Silicon Valley Clean Energy. This revenue source will be monitored closely as the fiscal year progresses.

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Franchise Fees
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, aside from a spike in revenue in FY 2022-23.This revenue s pike is related to a combination of the new franchise agreement with associated rate increases plus the demolition of the Oaks shopping center, which increased the usage of Recology debris boxes.

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The FY 2023-24 estimated franchise fee revenues are trending down 13.8% from FY 2022-23 actuals primarily due to a decrease in rates and/or usage for solid waste, electricity, and water, offset by an increase in cable and telecommunication rates and/or usage. In FY 2024-25, budgeted revenues are expected to increase approximately 1.9% from the prior year adopted budget. This revenue source will be monitored closely as the fiscal year progresses.

Other Taxes
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.

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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 2024-25, these revenues are expected to increase 2.6% from the prior year adopted budget.

The projected increase is based on a 3-year historical trend of actuals for property tax transfers. According to HdL, for FY 2024-25, the projected increase from known 2023 transfers within the non-Successor Agency areas of City is used to estimate value growth, with possible adjustments for Prop 8 appeals activity on transferred parcels. For this scenario, the estimated growth from transfers in FY 2025-26 matches the percentage of real value in FY 2024-25. For FY 2026-27 and later, growth is based on the historical average rate of real property growth due to properties that have transferred ownership.

Charges for Services
Charges for Services account for charges to users of City services funded by the General Fund as well as internal City-wide overhead. The City aLempts 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.

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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 to capture the true cost of providing various programs and services within City operations. AKer a comprehensive Cost Allocation Plan 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.

In FY 2023-24, estimated revenues are expected to come in roughly $2.3 million higher compared to budgeted levels due to the Vallco Town Center (renamed the Rise) and its scheduled commencement in FY 2023-24, in which the applicant received approval of value-engineered and modified plans. Revenues are carried forward until project completion.

FY 2024-25 revenues are projected to be 27% higher than the prior year adopted budget due. This projected increase is also due to an increase in Cost Allocation expenses, in which Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023. Other contributing factors are an increase in Other Service Fees related to the City's community shuLle program revenue and a new technology fee.

Licenses and Permits
Licenses and permits include fees for reviewing building plans, building inspections, construction, tenant FY 2024-25 Proposed Budget General Fund Financial Schedules 149 703
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improvements, and commercial/residential installations for compliance with state and municipal building codes.

Apple Park and large residential projects (Rosebowl, Biltmore expansion, Main Street) generated significant permitting revenues in FY 2013-14 (not shown in the trend chart above). 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 $34 million estimated amount in FY 2023-24 is due to plan check fee revenues anticipated to be recognized for Vallco Town Center (renamed The Rise). In FY 2024-25, revenues are budgeted at $3.7 million, a slight decrease from the prior year adopted budget.

Use of Money and Property
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. As of March 31, 2024, the City's portfolio included $67.0 million invested with the Local Agency Investment Fund (LAIF) and $149.6 million invested with Chandler Asset Management. As of March 31, 2023, the City also had $19.1 million in its Section 115 Pension Trust, which is restricted for pension costs.

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 fell in FY 2021-22 due to mark-to-market adjustments to account for unrealized losses in the City's portfolio.

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The portfolio's market value fluctuates depending on interest rates. When interest rates decrease aKer an investment is purchased, the market value of the investment increases. In contrast, when interest rates increase aKer an investment is purchased, the market value of the investment decreases. At the time of purchase, the City intends to hold all investments until maturity, meaning that changes in market value will not impact the City's investment principal. If the market value decreases, the City will incur an unrealized loss. However, the loss will only be realized if the City sells its investments before their maturity.

Investment earnings are a function of the amount of cash available for investment, current interest rates, and the 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 City staff will continue to monitor interest rates as well as economic factors in both the local as well as national economies. The $4.7 million budget is based on estimated interest earnings for FY 2024-25, which marks a departure from the City's previous more conservative approach to budgeting interest earnings. City staff collaborated with the City's investment advisor, Chandler Asset Management, to estimate interest earnings for FY 2024-25.

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Fines and Forfeitures
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. Revenues in this category dropped significantly in FY 2020-21 due to pandemic related restrictions and have increased over the next few years as society continued to rebound from the pandemic. In FY 2023-24, this revenue source is expected to reach $405,000. Revenues in FY 2024-25 are expected to slightly decrease 2.4% from the prior year adopted budget.

Intergovernmental
Intergovernmental revenues are made up of federal, state, and regional grants, including miscellaneous intergovernmental revenue.

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FY 2023-24 actuals are estimated to come in higher than budgeted levels due to the anticipated receipt of state grant revenues and other local revenues. FY 2024-25 revenues in this category are anticipated to be 206% higher than the prior year Adopted Budget due to an anticipated increase in grant revenues received, primarily due to a grant for the community shuttle.

Miscellaneous Revenue
Miscellaneous revenues account for unanticipated revenues such as donations and administrative fees.

FY 2024-25 miscellaneous revenues are budgeted 5.9% higher than the prior year adopted budget. The majority of the General Fund's miscellaneous revenues are due to Sheriff services from Apple for Law Enforcement services at Apple Park.

Other Financing Sources
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 2024-25, revenues are projected to be relatively consistent with the prior year adopted budget.

Transfers In
Transfers In represent the movement of funds from one City fund to another, the General Fund in this case.

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In FY 2022-23, actual transfers were high due to a transfer in from the Capital Reserve for the I-280/Wolfe project. FY 2023-24 is anticipated to come in higher than budgeted levels due to transfers in during the fiscal year for various projects. In FY 2024-25, 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
The estimates for FY 2024-25 General Fund expenditures are based on a thorough analysis of anticipated personnel and non-personnel costs. To create a more fiscally responsible budget, department budgets reflect a base budget with only justified ongoing expenses. This accounts for changes in personnel costs as well as any other anticipated or known increased costs in FY 2024-25.

As shown in the chart on the next page, FY 2024-25 expenditures are estimated at $89.9 million, which represents a 4.5% increase compared to the adopted budget from the prior year. This budget reflects an increase in Contract Services primarily aLributed to an increase in a general service agreement for the City's community shuttle program.

The largest General Fund operating expenditure categories include Employee Compensation and Benefits (39%), Contract Services (32%), Cost Allocation (12%), and Transfers (8%) as illustrated in the FY 2024-25 General Fund Expenditures by Category chart.

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Service Level Reductions
The table below illustrates service-level reductions made to the FY 2024-25 Budget. This budget was developed by taking the previous year's base budget and incorporating additional ongoing costs, while also adjusting material and contract expenses based on the Consumer Price Index (CPI), where applicable. Community benefit service level reductions were originally proposed at $463,690. Based on Council direction, only $123,343 in reductions remain for the 4th of July event, as staff was directed to secure alternate funding for the other items. Staff is working with non-profit and for-profit organizations, but nothing has been finalized to date. A detailed list can be found in the Budget Overview.

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Personnel Costs
In FY 2024-25, personnel costs are expected to reach $34.7 million, accounting for 39% of the General Fund expenditures. These costs include salaries and compensation for benefitted and part-time staff (67%), retirement benefits (19%), and other fringe benefits (13%), such as health coverage.

To obtain these figures, the City extracted data from the payroll system and made necessary updates to account for vacant positions, new hires, salary adjustments, and reallocated positions. Furthermore, the projected costs of benefits for the upcoming year, such as retirement and health plans, were taken into consideration. A transfer to the Retiree Medical Fund for retiree healthcare, which is an ongoing expense, is budgeted in FY 2024-25.

The FY 2024-25 Proposed Budget proposes funding for a total of 207 positions, representing a reduction of five positions from the FY 2023-24 Amended Budget. This reduction is due to revenue shortfalls resulting from the California Department of Taxes and Fee Administration (CDTFA) audit. It is important to note that the positions being eliminated are vacant positions that have not been filled for various reasons such as resignation, retirement, or the positions being left unfilled.

Non-Personnel
In FY 2024-25, non-personnel costs make up 53% of the total at $47.9 million. Contract services are the largest component at 32%, followed by cost allocation charges at 12%, materials at 6%, and capital outlays and special projects at 1%.

One-time projects were separated into a different category in FY 2013-14 to ensure expenditure trends reflect ongoing needs. In FY 2017-18, special projects and capital outlays were categorized separately from other costs.

Non-Personnel budgets were developed based on previous year's base budget and adjusted for the current year's needs. One-time projects were excluded to reflect ongoing expenditure needs. Materials and contract services were adjusted by CPI, where applicable.

Contingencies
In FY 2013-14, a contingencies expenditure category was added to each program to provide a cushion for any unforeseen expenses. In FY 2020-21, the program contingencies and City Manager Contingency were reduced from 5% to 2.5%. To further reduce expenditures, in FY 2021-22, the City Manager Contingency was reduced to $75,000. In FY 2022-23, program contingencies was reduced to 1.25%, and the City Manager Contingency was reduced to $50,000. The City has a track record of underspending in this category. The program contingency budget may be used by departments to cover unanticipated expenses at their discretion, while the City Manager Contingency requires the approval of the City Manager and is reported to the City Council quarterly for transparency and accountability.

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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. Transfers from the General Fund are as follows:

For descriptions of funds, see Financial Policies: Fund Structure.

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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.

CommiGed 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 liKed 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 commiLed. 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. Only the General Fund reports a positive unassigned fund balance. A governmental fund other than the General Fund may report a negative unassigned fund balance if expenditures incurred for a specific purpose exceed the amounts that are restricted, committed, or assigned to those purposes.

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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General Fund Forecast
Overview
Given the unknown final impact of the CDTFA audit appeal process, this budget focuses on the 10-year forecast. While long-term projections may be less precise than short-term projections, they can help identify potential structural budget issues in advance.

The following chart shows a structural deficit that begins in FY 2028-29 due to expenditures (2.6% average annual growth rate) growing at a faster rate than revenues (1.9% AAGR).

The California Department of Tax and Fee Administration (CDTFA) recently conducted an audit on one of the City's taxpayers. This will have a substantial impact on the City's finances, with a projected decline of $30 million, or 73%, in sales tax revenues from the initial FY 2023-24 forecast provided by HdL, the City's sales tax consultant. As a result, the City's total revenues are also anticipated to decrease by $30 million, or 28%, from the original FY 2023-24 forecast. In addition, the notice from the CDTFA indicated that the City may be required to pay back any disputed sales tax received since April 2021. While the ongoing impact of the audit is included in the forecast, the one-time impact is not.

The Council and staff have demonstrated proactive fiscal stewardship in response to the evolving financial landscape. The FY 2023-24 Adopted Budget, which Council adopted on June 6, 2023, incorporated significant expenditure reductions of more than $15 million dollars, including:

Eliminating 14 vacant positions ($2.6 million)
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($5.9 million)
Decreasing transfers from the General Fund to other funds ($5.5 million) Using the City's Section 115 Trust to fund OPEB (Other Post-Employment Benefits) costs ($1.4 million) Additionally, on October 10, 2023, the Council established a commiLed Sales Tax Repayment Reserve with an initial allocation of $56.5 million. This reserve was designed to address a potential adverse CDTFA decision and the uncertain outcome of the anticipated legal challenge. Funding came from Unassigned fund balance, the Capital Projects Reserve, and the Economic Uncertainty Reserve. Staff will be going to Council on May 21, 2024 to increase the Sales Tax Repayment Reserve to $74.5 million.

On January 17, 2024, staff sought Council direction on potential service-level reductions to help resolve the City’s structural deficit. Council provided feedback and directed staff to provide additional information. On April 16, 2024, staff provided additional information to Council and received confirmation on the updated service-level reductions.

The City recognizes the importance of fiscal prudence and responsible financial management in light of this significant revenue loss. To address the potential shortfall resulting from the CDTFA audit, City staff has updated the financial forecast and is actively exploring various strategies to balance the budget.

To address the structural deficit caused by recurring expenditures consistently surpassing recurring revenues, the City has been implementing cost-cuLing measures while ensuring that essential services continue to be provided to the community.

The City is taking a proactive approach to minimize the impact on its staff and residents, and City staff will continue to keep the Council informed of any new developments related to the audit and its impact on the City's finances. It is crucial to note that the CDTFA audit has resulted in an estimated structural deficit beginning in FY 2028-29 of the forecast, and the City will need to continue implementing long-term solutions to address this ongoing challenge. The surpluses in FY 2025-26 to FY 2027-28 are due to the elimination of $2 million in Capital Improvement Program (CIP) funding in the first five years of the forecast.

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Despite the challenging times, the City’s financial position remains strong with reserves that can be utilized to offset deficits until the City can align its ongoing expenditures with its revenues. It is important to note that these reserves are one-time funding, which cannot be relied upon to sustain the City’s finances in the long run.

In addition, reductions in FY 2023-24 and FY 2024-25, along with increases in charges for services and interest earnings, have positively impacted the forecast resulting in a modest surplus from FY 2025-26 to FY 2027-28.

In the out years, the deficit is primarily due to a recession scenario in FY 2027-28, as demonstrated in the chart above. The resumption of a $2 million transfer to the Capital Reserve in FY 2029-30, and the sunset of the Utility Users Tax in FY 2030-31.

These resources give the City a buffer and more options to manage its finances effectively. With a solid financial footing and prudent planning, the City is well-positioned to navigate these uncertain times and maintain its commitment to its staff and community.

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Forecast Methodology
A financial forecast is a crucial tool for planning and budgeting, allowing staff to analyze trends and anticipate the long-term impacts of budget decisions. It plays a vital role in modeling the effects of various factors, such as retirement costs, employee compensation, and revenues, on the City's budget.

It is important to note that the forecast is not a plan but rather a model that relies on revenue and cost assumptions, which are updated regularly as new information becomes available. While cost projections, which are based on known costs, are relatively reliable, revenue forecasts are subject to uncertainties related to future economic conditions. Economic forecasts can change frequently, making it difficult to commit to a particular prediction of the future. As such, staff must update the forecast regularly to ensure it reflects the latest information and trends.

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. Revenues from local, state, and federal agencies are primarily driven by grant and reimbursement funding. As a result, these revenues experience no significant net gain or loss during economic expansions or slowdowns. All revenue projections are based upon trend analysis, including 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 the potential impacts of the CDTFA audit in determining the sales tax estimates.

A discussion of the national and local economic outlooks used to develop the revenue estimates for the 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 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.

In 2024, the City worked with Baker Tilly to validate the City's financial forecast. In collaboration with Baker Tilly, the City has made the following updates to the forecast:

Increased the sales tax growth rate.

Adjusted the recession scenario from every 4 years to every 7 years to align with post-World War II patterns.

Incorporated 2% salary savings to account for vacant positions.

Updated CPI data source to UCLA Anderson Forecast.

Adjusted interest earnings to align with current reserves and investment strategy.

Implemented updates to the Economic Uncertainty Reserve level every year.

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National Economic Outlook
In the first quarter of 2024, the U.S. real gross domestic product (GDP) increased by 1.6% following a 3.4% rise in the previous quarter, propelled by heightened consumer spending, residential and nonresidential fixed investment, and state and local government expenditure, although dampened by a decrease in private inventory investment. This slower growth was primarily aLributed to reduced consumer spending, exports, and government expenditure, alongside tightened financial conditions and restrictive monetary policies.

Despite these factors, recent data suggests positive growth for the year, albeit below trend, with a slowing job market yet robust labor conditions and resilient consumer behavior.

With inflationary pressures easing but remaining above the Federal Reserve's target, expectations lean towards an anticipated soKening of the economy and potential loosening of monetary policy in late 2024. Additionally, in March, the stabilization of the U.S. Treasury yield curve coincided with the Federal Open Market CommiLee (FOMC) maintaining the Federal Funds rate. The spread between the 2-year and 10-year Treasury yields widened slightly, indicating ongoing economic monitoring and potential adjustments.

Cupertino Economic Outlook
The City does not anticipate significant impacts on property tax revenues in FY 2024-25. The City is optimistic about the future of transient occupancy tax (TOT) revenues, as the relaxation of pandemic-related restrictions has boosted business travel.

As more information becomes available, staff will bring forward updates and adjustments to City Council regularly as necessary.

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Revenues
The City relies heavily on three revenue sources: property tax, sales tax, and transient occupancy tax (TOT), which together make up the majority of its General Fund revenues.

The City's General Fund revenues are projected to be $89.8 million in FY 2024-25, and are expected to increase over the forecast period. Property tax and transient occupancy tax are expected to continue to be strong revenue sources, with projected increases. However, sales tax is projected to decrease significantly due to the CDTFA audit.

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 six 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 10 months and have occurred, on average, about every 6.5 years. As a result, the forecast assumes a recession every seven years where most revenues remain flat while expenditures continue to increase. The forecast incorporates a recession scenario in FY 2027-

28. This is a change from the previous recessionary assumption of every four years. The update was made based on a recommendation from Baker Tilly.

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Sales Tax
Prior to FY 2023-24, sales tax has been the City’s largest revenue source. Sales taxes are collected at the point of sale and remiLed to the California Department of Tax and Fee Administration (CDTFA), formerly the Board of Equalization.

Sales tax revenues are projected to increase by an average annual growth rate of 2.9% in the forecast. Staff used moderate estimates for business and industry, general consumer goods, restaurants and hotels, and state and county pools.

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Property Tax
Property taxes are projected to remain stable in the near term. However, the impact of potential remote work on property taxes in the long term is uncertain. The trend towards remote work has caused people to reconsider where they choose to live, which could lead to a decrease in demand for residential real estate. The high interest rate environment and a slow turnover rate of properties in the City may also impact this revenue category. Additionally, companies may need less office space if fewer employees are working at the office, which could decrease demand for commercial office space. This could result in a reduction of property tax revenue for the City.

In FY 2024-25, property tax revenues are expected to reach $33.2 million and increase at an average annual growth rate of 3.0% in the forecast. The moderate forecast is based on a range of factors, including historical trends for the City and projections for the region. While property tax has grown at an average annual rate of 11% historically, this projection assumes a lower growth rate. Historical property tax growth has been due to significant development projects such as Main Street and Apple Park, as well as the restoration of Tax Equity Allocation (TEA) revenues from FY 2015-16 to FY 2019-20.

The current projection does not assume any such developments in the near future, resulting in a more modest growth rate forecast. The City will continue to monitor economic and market trends to ensure that property tax revenue projections remain accurate.

Transient Occupancy Tax
The City's current forecast assumes that TOT revenues will be $7.7 million in FY 2024-25, and gradually increase. The forecast projects an average annual growth rate of 2.1% for TOT revenues. This moderate forecast is based on historical tax collections and assumes slower growth than historical trends. Historical growth in TOT revenues was primarily due to the addition of new hotels and a voter-approved increase in the TOT rate from 10% to 12% in 2012.

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The TOT revenues are affected by the tax rate charged on hotels, occupancy rates, and average daily room rates (ADR). Given that TOT revenues in Cupertino are mainly driven by business travel, any shiK in travel habits or economic conditions could significantly impact this revenue source.

Licenses and Permits
The City's forecast projects an average annual growth rate of 0.5% for licenses and permits revenue, based on forecasts of California residential building permits, non-residential building permits, and construction payrolls from the UCLA Anderson Forecast for the Nation and California.

It is important to note that this forecast does not take into account any significant 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
Charges for services revenues are projected to increase at an average annual growth rate of 3.1%. Other Service Fees, Cost Allocation Plan Charges for Services, and General Service Fees are expected to increase by the fulltime salary growth rate. Planning Fees and Engineering Fees are forecasted based on construction and development factors, such as California residential and non-residential building permits, and construction payrolls from the UCLA Anderson Forecast for the Nation and California.

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This forecast does not consider any significant development projects awaiting approval. The City will update the forecast if new projects are approved.

Other Revenue
Utility taxes are forecasted to be $0 beginning in FY 2030-31, as the utility user tax expires in November 2030.

Franchise fees are projected to increase by an average annual growth rate of 1.6% 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 propertyare projected based on the City’s forecasted General Fund fund balance and the City's current investment strategy. The Section 115 Pension Trust is expected to grow at the discount rate of

6.25%.

Intergovernmental revenues are projected to grow at a rate of 0.4% 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, which involved analyzing every function of the City for its needs and costs. As a result, all costs were justified, and base budget savings were achieved.

In FY 2023-24, the City implemented several budget-balancing strategies, including:

Eliminating 14 vacant positions
Decreasing expenditure on materials and contract services Reducing spending on special projects and capital outlays Reducing the City Manager's Discretionary Fund by $25,000 and contingencies by 50% Decreasing the amount of transfers to other funds
Utilizing the City's Section 115 Trusts to fund pension and OPEB (Other Post-Employment Benefits) costs
In FY 2024-25, the City is proposing further service-level reductions of $8.7 million. Council reviewed these reductions in a January 17, 2024 study session, and confirmed the reductions for inclusion in the proposed budget on April 16, 2024.

To inform these decisions, the City developed a forecast based on actual expenditures in prior years and FY 2024-25 projections. The forecast also considered factors such as CPI, construction and development activity, and CalPERS Normal Cost and Unfunded Liability projections. The forecast will be adjusted throughout the year to account for one-time changes and budget adjustments.

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The chart above illustrates the projected General Fund expenditures, which are estimated to be $89.9 million in FY 2024-25, with an expected increase over the forecast period. The forecasted expenditure growth is primarily driven by increasing Law Enforcement costs. To provide an in-depth understanding of the estimated expenditure categories in the General Fund Forecast, the following discussion focuses on the assumptions made for each category.

Personnel Expenditures
Salaries
FY 2024-25 salaries and benefits reflect the cost-of-living adjustments (COLA)s approved by the City Council in October 2023. In the forecast, full-time salaries are expected to increase by estimated payroll increases from the CalPERS valuation report. On the other hand, part-time salaries are forecasted to grow at a rate of 1.5%, because historically, part-time salaries have tended to grow at a slower rate than full-time salaries. A 2% vacancy rate has been included in the out-years of the forecast. This vacancy rate is new to the forecast, based on collaboration with Baker Tilly on the City’s long-term forecast.

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. 39% of employees are below the top step. Typically, classifications have five steps, with each increase equivalent to a 5% increase in salary.

Health Benefits
In FY 2024-25, health benefits account for about 10% 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. In November 2023, City Council approved additional increases to the City's health insurance contributions and a flat 6% increase to its contribution beginning in January 2025.

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Retirement Benefits
Rising retirement costs are driving the increase in employee benefits. The City provides a defined benefit pension to its employees through the California Public Employees' Retirement System (CalPERS). The table below illustrates the City's CalPERS costs over the next few years.

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.

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.

The retirement benefits are funded by:

Investment earnings (56%)
Employer contributions (33%)
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:

Normal cost (the cost of the benefits earned in a respective year) Amortization of the unfunded accrued liability (UAL)
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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. 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.

CalPERS Investment Earnings
The City's pension plan heavily relies on investment earnings, which fund nearly 60% of retirement benefits.

Thus, the plan is sensitive to the investment returns of CalPERS. When investment returns fall below the discount rate, contributions must increase to cover the shortfall.

Currently, CalPERS assumes an annual investment return of 6.8%. However, the investment returns earned by CalPERS have fallen short of the discount rate assumption approximately half the time over the past 20 years, as shown in the chart below. Investment returns for individual fiscal years have ranged between -24.0% and +21.7%. For instance, CalPERS suffered negative investment returns in 2001 and 2002 due to the dot-com crash and in 2008 and 2009 due to the Great Recession.

Note: Beginning in 2002, investment returns are reported as gross of fees.

For FY 2022-23, CalPERS reported an investment return of 5.8%. The average investment return is 6.1% for a 5- year period, 7.1% for a 10-year period, 7.0% for a 20-year period, and 7.5% 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.

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CalPERS Update
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. Leverage involves using borrowed funds or debt to amplify the potential returns of an investment. This increases the total amount of money available to invest to 105%.

CalPERS Plan Status
As of the most recent actuarial valuation on June 30, 2022, the City’s pension plan had assets of $117.0 million and liabilities of $177.3 million, resulting in an unfunded liability of $60.3 million and a funded ratio of 66.0%.

The unfunded liability is the difference between assets and liabilities, while the funded ratio is the ratio of assets to liabilities.

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.

The funded status of the system decreased because:

Poor investment returns during the Great Recession significantly decreased the plan’s assets.

Enhanced benefits and actuarial assumption changes due to increased life expectancies increased the plan's liabilities.

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 FY 2024-25 Proposed Budget General Fund Financial Schedules 176 730
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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.

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.

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 CommiLee. In May 2018, the City established a Section 115 Pension Trust to reduce the effect of pension rate volatility on the City’s budget. The Section 115 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 Pension 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.

As a result, 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 has contributed $16.0 million, including:
$8 million in FY 2018-19
$4 million in FY 2019-20
$2 million in FY 2020-21
$2 million in FY 2021-22
As of June 30, 2023, the Section 115 Pension Trust had a balance of $19.1 million and had earned an annualized investment return of 5.51% gross of fees since inception.

Other Benefits
The forecast assumes health insurance increase by 6% for the second half of FY 2024-25 and then, dental FY 2024-25 Proposed Budget General Fund Financial Schedules 177 731
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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.

Non-Personnel Expenditures
Non-Personnel budgets were developed based on the previous year's base budget and adjusted for the current year's needs. One-time projects were excluded to reflect ongoing expenditure needs. Materials and contract services were adjusted by CPI, where applicable. In response to the anticipated revenue shortfall resulting from the CDTFA audit, departments were asked to find ways to reduce the base budget. To balance the budget, various categories including materials, contract services, capital outlays, special projects, transfers to other funds, and contingencies were reduced.

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 Annual CPI plus 2% and annual CalPERS cost increase
The City's current agreement with the Santa Clara County Sheriff's Office is set to expire in June 2024, and negotiations are ongoing for a new agreement. In anticipation of potential increases in Law Enforcement costs, a placeholder increase has been included in the forecast. These costs have been a significant driver of the City's expenditure growth in recent years, and it is expected that they will continue to increase in the coming years.

Cost Allocation is projected to grow by 2.8%.

Capital Outlays and Special Projects are projected to increase by CPI. Capital Outlays and Special Projects are being reduced as an expenditure-reduction strategy.

Contingencies are projected to increase by CPI. Program contingencies were reduced to 1.25% and the City Manager's Contingency Fund was reduced to $50,000 in FY 2023-24. 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. It's worth noting that the City has historically underutilized contingencies, and the use of these funds would require preapproval by the City Manager or their 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. AKer the implementation of a comprehensive Cost Allocation Plan in FY 2015-16, General Fund expenses have been shiKed 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 shiK; however, aKer 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 fund balance minimums.

Projected General Fund subsidies to each fund are based on the following assumptions:

Special Revenue Funds: $1.5 million annually.

Debt Service Funds: $2.7 million based on the 2012 COPS debt service schedule until FY 2030-31.

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Capital Reserve: $0 million until FY 2028-29, then $2 million annually.

Retiree Medical Fund: Funding from FY 2024-25 to FY 2026-27 to restore OPEB plan to 100% funded.

Funding normal cost in the subsequent years.

Compensated Absences Fund: $0.8 million annually.

Innovation and Technology Fund: $0.2 million annually.

Enterprise Funds: $1.8 million annually.

Transfers from the General Fund to other funds have been reduced as part of an expenditure reduction strategy aimed at decreasing General Fund subsidies of other funds.

The City is expected to complete its debt payments for city facilities by FY 2029-30. Until then, the City will pay approximately $2.7 million annually in principal and interest on its Certificates of Participation for City Hall, Community Hall, and Library. These funds will be transferred from the General Fund to the Debt Service Funds.

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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.

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:

Sales Tax Repayment Reserve: may be used for potential sales tax repayments to the CDTFA.

Economic Uncertainty Reserve: may be used to mitigate potential shortfalls.

Section 115 Pension Trust: may be used to fund pension costs. Funds in the Section 115 Pension Trust are restricted and can only be used to pay CalPERS or reimburse the City for pension contributions.

In FY 2024-25, the General Fund’s total fund balance is projected to be $149.9 million, and the General Fund's Unassigned fund balance is projected to be $22.8 million. Fund balance is decreasing due to a persistent structural deficit that begins in FY 2028-29, resulting from ongoing expenses exceeding ongoing revenues. To address this, the City intends to utilize the fund balance to cover the shortfall until revenue and expenditure can be brought into alignment.

The Economic Uncertainty Reserve is increasing due to growth in the City’s revenues and expenditures. The Sales Tax Repayment Reserve is increasing due to interest earnings. Due to the structural deficit that begins in FY 2028-29, Unassigned and the Pension Trust are drawn down, with Unassigned being completely drawn down by FY 2030-31, and the Pension Trust being completely drawn down by FY 2033-34.

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Potential Budget-Balancing Strategies
Historically, the City has maintained a structurally sound budget, with revenues surpassing expenditures in most fiscal years. During periods of excess revenue, the City has transferred the surplus fund balance to the Capital Reserve Fund in accordance with the City's Fund Balance and Use of One-Time Funds Policy.

However, the forecast shows a potential structural deficit resulting from the anticipated decrease in sales tax revenue due to the CDTFA audit. A structural deficit occurs when recurring expenditures consistently surpass recurring revenues, leading to an ongoing imbalance that cannot be remedied through short-term solutions.

The City began including these strategies in FY 2018-19 and updates them at least annually or as needed.

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Potential Strategy Description Potential Impact Currently Recommended
Section 115 Pension
Trust
In FY 2017-18, the City established a
Section 115 Pension Trust to
mitigate 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 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.

The fund has a balance of $21.6
million. Yes
Section 115 OPEB
Trust
In FY 2009-10, the City established a
Section 115 OPEB Trust to help fund
its retiree health obligations, also
known as other post-employment
benefits (OPEB).

The OPEB plan is fully funded.

Starting in FY 2022-23, retiree health
costs will be funded by the OPEB
Trust rather than the General Fund.

The fund has a balance of $39.2
million. Yes
Sales Tax Repayment
Reserve
On October 10, 2023, the Council
established a committed Sales Tax
Repayment Reserve with an initial
allocation of $56.5 million. This
reserve was designed to address a
potential adverse CDTFA decision
and the uncertain outcome of the
anticipated legal challenge.

The reserve has a balance of
$77.6 million. Yes
Economic
Uncertainty Reserve
The General Fund Economic
Uncertainty Reserve may be used to
mitigate potential shortfalls.

The reserve has a balance of
$21.3 million. No
Balance as of March 31, 2024
Proposed balance as of May 1, 2024
1 1
2 2
1 2
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Expenditure Reduction Strategies
Potential Strategy Description Potential Impact Currently Recommended
No new positions Cost containment strategy $0 Yes
Vacancy control Keep non-essential positions unfilled as they become vacant.

Approximately
$196,000 per
position on
average
Yes
Employee cost-sharing of
increases to CalPERS
Negotiate to share costs of increases to
CalPERS employer rates with employees.

Would be subject to bargaining unit
agreement.
$250,000
approximate
based on a 5% rate
increase
No
Defer or eliminate
negotiated increases
Would be subject to bargaining unit
agreement.

Approximately
$0.4 million
savings based on a
1% decrease
No
Furloughs
Employees would take up to a 10% decrease
in pay in exchange for 1 unpaid furlough
day per pay period. Would be subject to
bargaining unit agreement.

Approximately $4
million savings
based on a 10%
decrease
No
Reduction in force
Identify positions to be reduced (laid off)
based on MOU provisions and service level
needs.

Approximately
$196,000 per
position on
average
No
Reduction in capital
outlays and special
projects
Cost containment strategy Up to $13 million Yes
Reduction in
contingencies Cost containment strategy Up to $340,000 Yes Defer or cancel capital
projects Cost reduction strategy Varies Yes
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Revenue Generation Strategies
Potential Strategy Description Potential Impact Currently Recommended
¼ Cent Transaction and
Use Tax (TUT)
Voter approval is required
Could increase sales tax from 9.125% to

9.375%
$5.4 million No
Transient Occupancy
Tax (2% increase)
Voter approval is required
Could increase transient occupancy tax from
12% to 14%
$1.25M at $7.5M
base No
Parcel Tax Voter approval is required
$3.7M flat rate per
parcel
$3.8M variable
rate per square
foot
No
Business Operations Tax Employee count tax $4.2 million No Increase fees and costrecovery
Matrix Consulting Group conducted a fee
study in 2023. The study assessed the
potential for fee increases and cost recovery.

The new fee schedule will go to Council in
May 2024.

Varies Yes
Sale of City-owned
Properties or Assets
The sale of city-owned assets would generate
one-time revenue. Varies No
HdL estimate as of July 2023
Development Revenue Estimates
The City's current forecast does not incorporate potential significant development projects that are pending approval and permiLing. However, once new development projects receive approvals and permits, staff will update the forecast accordingly.

The table below shows our best estimates of potential development revenue. These figures serve as rough approximations and are intended to give you a general idea of what to expect. The timeline for each project represents the Community Development department's best estimate of when commencement is anticipated. It is crucial to note that these estimates are subject to adjustments as we gather additional information over time. 1 1
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Council and Commissions
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Department Overview
Budget Units
Budget Unit Program 2025 Proposed Budget
City Council $ 646,419
100-10-100 City Council $ 546,800
100-10-101 Community Funding $ 608
100-10-104 Historical Society $ 40,000
100-10-110 Sister Cities $ 59,011
Commissions $ 432,949
100-11-131 Technology, Information & Communications Commission $ 23,351 100-11-140 Library Commission $ 27,848
100-11-142 Arts and Culture Commission $ 29,986
100-11-150 Public Safety Commission $ 36,569
100-11-155 Bicycle and Pedestrian Commission $ 40,421
100-11-160 Parks and Recreation Commission $ 26,481
100-11-165 Teen Commission $ 15,571
100-11-170 Planning Commission $ 122,410
100-11-175 Housing Commission $ 60,997
100-11-180 Sustainability Commission $ 17,744
100-11-190 Audit Committee $ 31,571
Total $ 1,079,368
FY 2024-25 Proposed Budget Council and Commissions 191
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Budget at a Glance
2025 Proposed Budget
Total Revenues $ 104,305
Total Expenditures $ 1,079,368
Fund Balance $ -
General Fund Costs $ 975,063
% Funded by General Fund 90.3%
Total Staffing 7.2 FTE
Organization
Sheila Mohan, Mayor
J.R. Fruen, Vice Mayor
Liang Chao, Council Member
Kitty Moore, Council Member
Hung Wei, Council Member
FY 2024-25 Proposed Budget Council and Commissions 192
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FY 2024-25 Proposed Budget Council and Commissions 193
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Proposed Budget
It is recommended that City Council approve a budget of $1,079,368 for the Council and Commissions department. This represents a decrease of $89,933 (-7.7%) from the FY 2023-24 Adopted Budget.

The decrease is primarily due to the reallocation of positions in various programs, the exclusion of Community Funding as the City Council will not consider these requests until their May 21, 2024 meeting, and updates to the Cost Allocation Plan (CAP) charges that occurred this year. These reductions are offset by increased health costs due to negotiated increases.

The following table illustrates the Service-Level Reductions for the department.

Grouping Service-Level Reduction Fiscal Impact Service-Level Impact Narrative Operations and
Maintenance
Reduce Commission
Expenses $(468) Reduction aligns with budgetactuals
Operations and
Maintenance
Reduce Commission
Expenses $(1,855) Reduced budget for TeenCommission
Total $(2,323)
FY 2024-25 Proposed Budget Council and Commissions 194
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Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures

59.9%

40.1%
City Council
Commissions
$1.06M
$1.10M
$1.17M
$1.08M
2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget FY 2024-25 Proposed Budget Council and Commissions 195
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ 1,054,877 $ 830,532 $ 827,983 $ 104,305 Miscellaneous Revenue $ 1,251 $ - $ - $ -
Transfers In $ 82,396 $ - $ - $ -
Total Revenues $ 1,138,524 $ 830,532 $ 827,983 $ 104,305 Expenditures
Employee Compensation $ 328,386 $ 326,585 $ 359,253 $ 339,760 Employee Benefits $ 214,198 $ 195,869 $ 238,316 $ 257,659 Materials $ 121,075 $ 142,479 $ 161,259 $ 133,358
Contract Services $ 137,954 $ 164,201 $ 133,320 $ 97,326 Cost Allocation $ 260,845 $ 271,261 $ 273,620 $ 248,971 Contingencies $ 7 $ - $ 3,533 $ 2,294
Total Expenditures $ 1,062,465 $ 1,100,395 $ 1,169,301 $ 1,079,368 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (76,059) $ 269,864 $ 341,318 $ 975,063 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 2024-25 Proposed Budget Council and Commissions 196
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Position Title 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.50 0.50 0.40 0.40
ASSISTANT ENGINEER 0 0 0 0.10
ASST DIR RECREATION COMM SVCS 0.05 0.15 0 0
CHIEF TECHNOLOGY OFFICER 0.02 0.02 0.02 0.02

COMMS AND MARKETING

COORDINATOR
0 0 0 0.15
COMMUNITY OUTREACH SPECIALIST 0.10 0.10 0.10 0.10
COUNCIL MEMBER 5.00 5.00 5.00 5.00
DIRECTOR OF COMM DEVELOPMENT 0.06 0.06 0.06 0.06
DIRECTOR OF PARKS REC 0.05 0.05 0 0
EMERGENCY MANAGER 0 0 0.05 0.05

EMERGENCY SERVICES

COORDINATOR

0.05 0.05 0 0
ENV. PROGRAMS SPECIALIST 0 0 0 0.05
EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50
FINANCE MANAGER 0.05 0.05 0.05 0.05
MANAGEMENT ANALYST 0.10 0.10 0.20 0.10
PLANNING MANAGER 0.10 0.10 0.10 0
PUBLIC INFORMATION OFFICER 0.15 0.15 0.15 0
RECREATION COORDINATOR 0.45 0 0 0
RECREATION MANAGER 0 0.10 0.15 0.15
RECREATION SUPERVISOR 0.05 0 0 0
SENIOR HOUSING COORDINATOR 0 0 0 0.20
SENIOR PLANNER 0 0 0.10 0.10
SR OFFICE ASSISTANT 0.20 0.20 0.20 0.20
SUSTAINABILITY MANAGER 0.05 0.05 0.05 0
TRANSPORTATION MANAGER 0.10 0.10 0.10 0
Total 7.58 7.28 7.23 7.23
FY 2024-25 Proposed Budget Council and Commissions 197
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City Council
Budget Unit 100-10-100
General Fund - City Council - City Council
Budget at a Glance
2025 Proposed Budget
Total Revenues $ 104,305
Total Expenditures $ 546,800
Fund Balance $ -
General Fund Costs $ 442,495
% Funded by General Fund 80.9%
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. This budget includes funding of $10,000 for the Mayor's Fund and $2,500 for fee waivers for the City Council members.

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 $546,800 for the City Council program. This represents an increase of $115,407 (26.8%) from the FY 2023-24 Adopted Budget.

The increase is due to increases in Cost Allocation expenses and increased health care costs due to negotiated increases. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

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 2024-25 Proposed Budget Council and Commissions 198
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ 1,054,877 $ 830,532 $ 827,983 $ 104,305 Miscellaneous Revenue $ 1,251 $ - $ - $ -
Total Revenues $ 1,056,128 $ 830,532 $ 827,983 $ 104,305 Expenditures
Employee Compensation $ 118,793 $ 148,303 $ 149,862 $ 148,580 Employee Benefits $ 121,999 $ 131,806 $ 143,301 $ 167,750 Materials $ 92,438 $ 112,595 $ 108,303 $ 108,890
Contract Services $ 7,086 $ 33,125 $ 28,220 $ 24,110
Cost Allocation $ - $ - $ - $ 95,807
Contingencies $ - $ - $ 1,707 $ 1,663
Total Expenditures $ 340,316 $ 425,829 $ 431,393 $ 546,800 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (715,812) $ (404,703) $ (396,590) $ 442,495 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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget

COMMS AND MARKETING

COORDINATOR
0 0 0 0.10
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 0.10 0.10 0.10 0
SR OFFICE ASSISTANT 0.15 0.15 0.15 0.20
Total 5.85 5.85 5.85 5.90
Staff is being reallocated to better reflect actual time spent in this program.

FY 2024-25 Proposed Budget Council and Commissions 199
753
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Community Funding
Budget Unit 100-10-101
General Fund - City Council - Community Funding
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 608
Fund Balance $ -
General Fund Costs $ 608
% 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 revised and adopted by City Council on November 15, 2022.

Proposed Budget
It is recommended that City Council approve a budget of $608 for the Community Funding program. This represents a decrease of $34,965 (-98.3%) from the FY 2023-24 Adopted Budget.

The decrease is primarily due to the exclusion of community funding dollars due to the timing of the request not being presented to City Council until May 21, 2024. Any funding approved will be included in the adopted 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 2024-25 Proposed Budget Council and Commissions 200
754
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Transfers In $ 82,396 $ - $ - $ -
Total Revenues $ 82,396 $ - $ - $ -
Expenditures
Contract Services $ 115,900 $ 109,460 $ 32,500 $ -
Cost Allocation $ 2,259 $ 2,270 $ 2,267 $ 608
Contingencies $ - $ - $ 806 $ -
Total Expenditures $ 118,159 $ 111,730 $ 35,573 $ 608
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 35,763 $ 111,730 $ 35,573 $ 608
Staffing
There is no staffing associated with this program.

FY 2024-25 Proposed Budget Council and Commissions 201
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Historical Society
Budget Unit 100-10-104
General Fund - City Council - Historical Society
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 40,000
Fund Balance $ -
General Fund Costs $ 40,000
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
The City has executed a Grant Funding and License Agreement with the Cupertino Historical Society, approved by City Council on October 4, 2022. The Agreement is set for three years, with an option to extend for another two. During this term the City is providing an annual grant amount of $40,000 and a license to utilize space at the Quinlan Community Center to the Cupertino Historical Society. In return, the Cupertino Historical Society will continue to manage and operate the Historical Museum, commit to the Service Objectives highlighted below, and other terms and conditions highlighted in the Agreement. The grant amount has been separated into this program for increased transparency.

Service Objectives
Collections Management - Professionally manage archive of over 5,000 objects. Sample activities include cataloging, rehousing objects, collections research, object paperwork and assessment, collections inventory, collections digitizing, condition reports, pest remediation, etc.

Curatorial/Exhibitions - Provide 3-5 professionally curated exhibits/pop-up exhibits annually that relate to the mission of the museum and interests of the community.

Community Outreach - Museum open houses during City festivals and fairs; QCC Preschool Events with CraKs; Special Exhibits at various locations around Cupertino (Cupertino Library, Baer Blacksmith Shop, Other Local Organizations); Traveling Trunk; Quarterly Speaker Series; Community Action CommiLee; Oral History Events; History Happy Hours; Volunteer and Internship opportunities for anyone ages 16+; Reading Groups
Proposed Budget
It is recommended that City Council approve a budget of $40,000 for the Historical Society program. This budget is unchanged from the prior year.

Revenues and Expenditures
FY 2024-25 Proposed Budget Council and Commissions 202
756
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ - $ - $ 40,000 $ 40,000
Total Expenditures $ - $ - $ 40,000 $ 40,000
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ - $ 40,000 $ 40,000
Staffing
There is no staffing associated with this program.

FY 2024-25 Proposed Budget Council and Commissions 203
757
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Sister Cities
Budget Unit 100-10-110
General Fund - City Council - Sister Cities
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 59,011
Fund Balance $ -
General Fund Costs $ 59,011
% 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 $59,011 for the Sister Cities program. This represents a decrease of $14,075 (-19.3%) from the FY 2023-24 Adopted Budget.

The decrease is primarily due to reduction in staff and level of staff to support 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.

FY 2024-25 Proposed Budget Council and Commissions 204
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 11,095 $ 8,883 $ 12,533 $ 6,550 Employee Benefits $ 4,320 $ 3,003 $ 5,957 $ 3,967
Materials $ 1,210 $ 810 $ 15,680 $ 8,887
Contract Services $ 2,825 $ 11,347 $ 20,000 $ 20,000
Cost Allocation $ 31,921 $ 19,459 $ 18,520 $ 19,246
Contingencies $ - $ - $ 396 $ 361
Total Expenditures $ 51,371 $ 43,502 $ 73,086 $ 59,011
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 51,371 $ 43,502 $ 73,086 $ 59,011
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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget

COMMS AND MARKETING

COORDINATOR
0 0 0 0.05
PUBLIC INFORMATION OFFICER 0.05 0.05 0.05 0
SR OFFICE ASSISTANT 0.05 0.05 0.05 0
Total 0.10 0.10 0.10 0.05
Staff is being reallocated to better reflect actual time spent in this program.

FY 2024-25 Proposed Budget Council and Commissions 205
759
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Technology, Information & Communications
Commission
Budget Unit 100-11-131
General Fund - Commissions - Technology, Information & Communications Commission Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 23,351
Fund Balance $ -
General Fund Costs $ 23,351
% 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 $23,351 for the Technology, Information & Communications Commission program. This represents a decrease of $12,279 (-34.5%) from the FY 2023-24 Adopted Budget.

The decrease is due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

Revenues and Expenditures
FY 2024-25 Proposed Budget Council and Commissions 206
760
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 10,365 $ 11,291 $ 11,795 $ 11,757 Employee Benefits $ 3,748 $ 3,348 $ 5,026 $ 5,226
Materials $ 740 $ 187 $ 318 $ 400
Cost Allocation $ 16,056 $ 18,183 $ 18,487 $ 5,963
Contingencies $ - $ - $ 4 $ 5
Total Expenditures $ 30,909 $ 33,009 $ 35,630 $ 23,351
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 30,909 $ 33,010 $ 35,630 $ 23,351
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0 0
CHIEF TECHNOLOGY OFFICER 0.02 0.02 0.02 0.02
MANAGEMENT ANALYST 0 0 0.05 0.05
Total 0.07 0.07 0.07 0.07
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Council and Commissions 207
761
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Library Commission
Budget Unit 100-11-140
General Fund - Commissions - Library Commission
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 27,848
Fund Balance $ -
General Fund Costs $ 27,848
% 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.

Continue library advocacy in Cupertino activities and with other organizations.

Coordinate and implement the biennial 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 $27,848 for the Library Commission program. This represents a decrease of $15,111 (-35.2%) from the FY 2023-24 Adopted Budget.

The decrease is due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

FY 2024-25 Proposed Budget Council and Commissions 208
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The table below shows the service-level reductions for this program.

Grouping Service-Level Reduction Fiscal
Impact Service-Level Impact Narrative
Operations and
Maintenance
Reduce Commission
Expenses $(468) Reduction aligns with budgetactuals.

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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 15,404 $ 19,956 $ 12,526 $ 12,402 Employee Benefits $ 6,887 $ 8,268 $ 6,060 $ 6,690
Materials $ 307 $ 53 $ 68 $ 11
Contract Services $ 2,143 $ 269 $ 2,000 $ 2,000
Cost Allocation $ 15,562 $ 32,894 $ 22,279 $ 6,720
Contingencies $ - $ - $ 26 $ 25
Total Expenditures $ 40,303 $ 61,440 $ 42,959 $ 27,848
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 40,303 $ 61,440 $ 42,959 $ 27,848
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 2024-25 Proposed Budget Council and Commissions 209
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Position Title 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05

ASST DIR RECREATION COMM
SVCS

0.05 0 0 0
RECREATION MANAGER 0 0.05 0.05 0.05
RECREATION SUPERVISOR 0.05 0 0 0
Total 0.15 0.10 0.10 0.10
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Council and Commissions 210
764
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Arts and Culture Commission
Budget Unit 100-11-142
General Fund - Commissions - Arts and Culture Commission Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 29,986
Fund Balance $ -
General Fund Costs $ 29,986
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Arts and Culture 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. At the end of Fiscal Year 2023-2024, the Senior Planner of Community Development 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 and Art in Lieu fees.

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 $29,986 for the Arts and Culture Commission program. This represents a decrease of $11,526 (-27.8%) from the FY 2023-24 Adopted Budget.

The decrease is due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

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 2024-25 Proposed Budget Council and Commissions 211
765
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 8,751 $ - $ 15,613 $ 15,382
Employee Benefits $ 5,784 $ (845) $ 5,914 $ 5,924
Materials $ 3,249 $ 3,453 $ 4,089 $ 2,039
Cost Allocation $ 25,149 $ 16,128 $ 15,845 $ 6,641
Contingencies $ 7 $ - $ 51 $ -
Total Expenditures $ 42,940 $ 18,736 $ 41,512 $ 29,986
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 42,939 $ 18,736 $ 41,512 $ 29,986
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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget

ASST DIR RECREATION COMM
SVCS
0 0.15 0 0
RECREATION COORDINATOR 0.15 0 0 0
SENIOR PLANNER 0 0 0.10 0.10
Total 0.15 0.15 0.10 0.10
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Council and Commissions 212
766
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Public Safety Commission
Budget Unit 100-11-150
General Fund - Commissions - Public Safety Commission
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 36,569
Fund Balance $ -
General Fund Costs $ 36,569
% 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 maLers pertaining to safety, traffic, police, fire and other areas wherein the maLer 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 $36,569 for the Public Safety Commission program.

This represents a decrease of $10,824 (-22.8%) from the FY 2023-24 Adopted Budget.

The decrease is due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

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 2024-25 Proposed Budget Council and Commissions 213
767
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 7,227 $ 8,136 $ 9,583 $ 9,440
Employee Benefits $ 3,801 $ 3,520 $ 4,559 $ 4,885
Materials $ 1,454 $ 4,846 $ 6,143 $ 6,143
Contract Services $ 10,000 $ 10,000 $ 10,600 $ 10,600
Cost Allocation $ 8,933 $ 12,496 $ 16,299 $ 5,292
Contingencies $ - $ - $ 209 $ 209
Total Expenditures $ 31,415 $ 38,998 $ 47,393 $ 36,569
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 31,415 $ 38,998 $ 47,393 $ 36,569
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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
EMERGENCY MANAGER 0 0 0.05 0.05

EMERGENCY SERVICES

COORDINATOR

0.05 0.05 0 0
Total 0.05 0.05 0.05 0.05
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Council and Commissions 214
768
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Bicycle and Pedestrian Commission
Budget Unit 100-11-155
General Fund - Commissions - Bicycle and Pedestrian Commission Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 40,421
Fund Balance $ -
General Fund Costs $ 40,421
% 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 maLers 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 $40,421 for the Bicycle and Pedestrian Commission program. This represents a decrease of $22,294 (-35.5%) from the FY 2023-24 Adopted Budget.

The decrease is due to reductions in Cost Allocation expenses and the reallocation of staff supporting this program. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

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 2024-25 Proposed Budget Council and Commissions 215
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 24,762 $ 27,443 $ 27,282 $ 19,919 Employee Benefits $ 12,022 $ 9,640 $ 11,434 $ 9,654
Materials $ 131 $ - $ 223 $ 223
Contract Services $ - $ - $ - $ 616
Cost Allocation $ 10,706 $ 24,809 $ 23,773 $ 9,999
Contingencies $ - $ - $ 3 $ 10
Total Expenditures $ 47,621 $ 61,892 $ 62,715 $ 40,421
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 47,621 $ 61,892 $ 62,715 $ 40,421
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
ASSISTANT ENGINEER 0 0 0 0.10
TRANSPORTATION MANAGER 0.10 0.10 0.10 0
Total 0.15 0.15 0.15 0.15
Staff is being reallocated to better reflect actual time spent in this program.

FY 2024-25 Proposed Budget Council and Commissions 216
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Parks and Recreation Commission
Budget Unit 100-11-160
General Fund - Commissions - Parks and Recreation Commission Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 26,481
Fund Balance $ -
General Fund Costs $ 26,481
% 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. A Parks and Recreation Department Recreation Manager serves as staff liaison.

Service Objectives
Engage with the public by attending Parks and Recreation Events.

Consider public input regarding parks projects.

To make, in its advisory capacity, any and all recommendations to the City Council regarding parks projects.

Provide feedback to the department on related programs and events.

To consider, formulate, and propose cultural activities and historical preservation for the City and its residents.

Serve as ambassadors for the Parks and Recreation Department.

Proposed Budget
It is recommended that City Council approve a budget of $26,481 for the Parks and Recreation Commission program. This represents a decrease of $12,369 (-31.8%) from the FY 2023-24 Adopted Budget.

The decrease is due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

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 2024-25 Proposed Budget Council and Commissions 217
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 14,314 $ 14,225 $ 12,603 $ 13,129 Employee Benefits $ 4,407 $ 5,457 $ 5,069 $ 6,840
Materials $ 90 $ - $ 11 $ 11
Cost Allocation $ 24,945 $ 20,182 $ 21,167 $ 6,501
Total Expenditures $ 43,756 $ 39,864 $ 38,850 $ 26,481
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 43,756 $ 39,864 $ 38,850 $ 26,481
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
DIRECTOR OF PARKS REC 0.05 0.05 0 0
RECREATION MANAGER 0 0 0.05 0.05
Total 0.10 0.10 0.10 0.10
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Council and Commissions 218
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Teen Commission
Budget Unit 100-11-165
General Fund - Commissions - Teen Commission
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 15,571
Fund Balance $ -
General Fund Costs $ 15,571
% 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 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 $15,571 for the Teen Commission program. This represents a decrease of $26,895 (-63.3%) from the FY 2023-24 Adopted Budget.

The decrease is mainly due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The table below shows the service-level reductions for this program.

Grouping Service-Level Reduction Fiscal
Impact Service-Level Impact Narrative
Operations and
Maintenance
Reduce Commission
Expenses $(1,855) Reduced budget for TeenCommission.

Revenues and Expenditures
FY 2024-25 Proposed Budget Council and Commissions 219
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 31,766 $ 6,882 $ 7,343 $ 7,590
Employee Benefits $ 14,694 $ 2,600 $ 2,767 $ 2,891
Materials $ 220 $ 828 $ 2,140 $ 285
Cost Allocation $ 31,971 $ 29,226 $ 30,189 $ 4,801
Contingencies $ - $ - $ 27 $ 4
Total Expenditures $ 78,651 $ 39,536 $ 42,466 $ 15,571
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 78,652 $ 39,536 $ 42,466 $ 15,571
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget RECREATION COORDINATOR 0.30 0 0 0
RECREATION MANAGER 0 0.05 0.05 0.05
Total 0.30 0.05 0.05 0.05
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Council and Commissions 220
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Planning Commission
Budget Unit 100-11-170
General Fund - Commissions - Planning Commission
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 122,410
Fund Balance $ -
General Fund Costs $ 122,410
% 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 CommiLee, the Environmental Review CommiLee, 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 $122,410 for the Planning Commission program. This represents an increase of $4,755 (4.0%) from the FY 2023-24 Adopted Budget.

This is due to an increase in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023. The increase is offset by a reduction in material costs for this budget.

Revenues and Expenditures
FY 2024-25 Proposed Budget Council and Commissions 221
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 33,901 $ 33,992 $ 36,403 $ 36,723 Employee Benefits $ 12,208 $ 11,429 $ 18,046 $ 17,459
Materials $ 20,172 $ 17,600 $ 22,215 $ 4,900
Cost Allocation $ 37,520 $ 35,427 $ 40,713 $ 63,328
Contingencies $ - $ - $ 278 $ -
Total Expenditures $ 103,801 $ 98,448 $ 117,655 $ 122,410 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 103,801 $ 98,448 $ 117,655 $ 122,410 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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.20 0.20 0.20 0.20

DIRECTOR OF COMM

DEVELOPMENT

0.06 0.06 0.06 0.06
Total 0.26 0.26 0.26 0.26
There are no changes to the current level of staffing.

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Housing Commission
Budget Unit 100-11-175
General Fund - Commissions - Housing Commission
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 60,997
Fund Balance $ -
General Fund Costs $ 60,997
% Funded by General Fund 100.0%
Total Staffing 0.3 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 $60,997 for the Housing Commission program. This represents a decrease of $380 (-0.6%) from the FY 2023-24 Adopted Budget.

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The decrease is mainly due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023 and is offset by increases in salary and benefits due to the reallocation of staff to better reflect actual time spent in 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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 22,098 $ 21,822 $ 24,595 $ 34,855 Employee Benefits $ 10,469 $ 8,037 $ 11,438 $ 15,597
Materials $ - $ - $ 229 $ 229
Cost Allocation $ 24,838 $ 23,497 $ 25,112 $ 10,316
Contingencies $ - $ - $ 3 $ -
Total Expenditures $ 57,405 $ 53,356 $ 61,377 $ 60,997
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 57,405 $ 53,356 $ 61,377 $ 60,997
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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
PLANNING MANAGER 0.10 0.10 0.10 0

SENIOR HOUSING

COORDINATOR
0 0 0 0.20
Total 0.15 0.15 0.15 0.25
Staff is being reallocated to better reflect actual time spent in this program.

FY 2024-25 Proposed Budget Council and Commissions 224
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Sustainability Commission
Budget Unit 100-11-180
General Fund - Commissions - Sustainability Commission
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 17,744
Fund Balance $ -
General Fund Costs $ 17,744
% Funded by General Fund 100.0%
Total Staffing 0.1 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, draKing 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.

FY 2024-25 Proposed Budget Council and Commissions 225
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Proposed Budget
It is recommended that City Council approve a budget of $17,744 for the Sustainability Commission program.

This represents a decrease of $40,365 (-69.5%) from the FY 2023-24 Adopted Budget.

This decrease is due to the reallocation and transfer of the Sustainability Manger and Management Analyst positions in Sustainability to Environmental Programs. Additionally, the decrease is due to a reduction in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 20,574 $ 18,882 $ 23,264 $ 6,588 Employee Benefits $ 10,723 $ 7,625 $ 11,295 $ 2,999
Materials $ 1,064 $ 2,107 $ 1,840 $ 1,340
Cost Allocation $ 25,122 $ 21,216 $ 21,687 $ 6,800
Contingencies $ - $ - $ 23 $ 17
Total Expenditures $ 57,483 $ 49,830 $ 58,109 $ 17,744
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 57,483 $ 49,830 $ 58,109 $ 17,744
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget ENV. PROGRAMS SPECIALIST 0 0 0 0.05
MANAGEMENT ANALYST 0.10 0.10 0.10 0
SUSTAINABILITY MANAGER 0.05 0.05 0.05 0
Total 0.15 0.15 0.15 0.05
As part of an expenditure reduction strategy, the Sustainability department was absorbed by Public Works, and the vacant Management Analyst and Sustainability Manager were transferred to Public Works:

FY 2024-25 Proposed Budget Council and Commissions 226
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Audit Committee
Budget Unit 100-11-190
General Fund - Commissions - Audit Committee
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 31,571
Fund Balance $ -
General Fund Costs $ 31,571
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Audit CommiLee, consisting of two City Council members and a minimum of two and a maximum of three at large members, holds the following powers and functions:

To review the annual audit report and management letter.

To recommend appointment of internal/external auditors.

To review the quarterly Treasurer's Investment report.

To recommend a budget format.

To review City investment policies and internal controls of such policies.

To review internal audit reports.

To review quarterly Fraud, Waste, and Abuse Program reports.

The Audit Committee meets quarterly. The Finance Manager serves as staff liaison.

Proposed Budget
It is recommended that City Council approve a budget of $31,571 for the Audit CommiLee program. This represents a decrease of $9,012 (-22.2%) from the FY 2023-24 Adopted Budget.

The decrease is due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 9,336 $ 6,770 $ 15,851 $ 16,845 Employee Benefits $ 3,136 $ 1,981 $ 7,450 $ 7,777
Cost Allocation $ 5,863 $ 15,474 $ 17,282 $ 6,949
Total Expenditures $ 18,335 $ 24,225 $ 40,583 $ 31,571
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 18,335 $ 24,225 $ 40,583 $ 31,571
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0 0
FINANCE MANAGER 0.05 0.05 0.05 0.05
MANAGEMENT ANALYST 0 0 0.05 0.05
Total 0.10 0.10 0.10 0.10
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Council and Commissions 228
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Administration
FY 2024-25 Proposed Budget Administration 229
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Department Overview
Budget Units
Budget Unit Program 2025 Proposed Budget
City Manager $ 4,005,853
100-12-120 City Manager $ 2,177,621
100-12-122 Sustainability $ -
100-12-126 Office of Communications $ 416,779
100-12-305 Multimedia $ -
100-12-307 Public Access Support $ -
100-12-632 Community Outreach and Neighborhood Watch $ 224,749 100-12-633 Office of Emergency Management $ 645,629
100-12-705 Economic Development $ 541,075
City Clerk $ 1,013,881
100-13-130 City Clerk $ 828,734
100-13-132 Duplicating and Mail Services $ 43,031
100-13-133 Elections $ 142,116
City Manager Discretionary $ 50,000
100-14-123 City Manager Contingency $ 50,000
City Attorney $ 1,484,229
100-15-141 City Attorney $ 1,484,229
Total $ 6,553,963
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Budget at a Glance
2025 Proposed Budget
Total Revenues $ 2,825,126
Total Expenditures $ 6,553,963
Fund Balance $ -
General Fund Costs $ 3,728,837
% Funded by General Fund 56.9%
Total Staffing 19.0 FTE
Organization
Pamela Wu, City Manager
Matt Morley, Assistant City Manager
Christopher Jensen, City Attorney
Tina Kapoor, Deputy City Manager
Kirsten Squarcia, City Clerk
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City Manager's Office
City Attorney's Office
Staffing levels in Administration are changing due to the transfer of a Sustainability Manager and a Sustainability Analyst to Public Works. In addition, there is an elimination of one vacant limited term Special Projects Executive.

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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 2022
July-June
FY 2023
July-June
FY 2024
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
96%/100% 100%/100% 100%/100% 100%
Public Record Act requests responded to by the
Statutory deadline date 100% 99% 99% 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 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Ongoing
Target
Social media engagement: total number of followers
including City Hall Nextdoor, Facebook, Twitter, and
Instagram , YouTube, accounts
40,294 41,000 43,011
10%
annual
increase
Community engagement: total number of IOI recipients 1508 1732 2096 10%
annual
increase
Total Number of Gov Delivery Notices sent
631 586 255
Average
Close
Time 5
Days
*Social media engagement metrics seen here are different due to Facebook's changes on its metrics, how they calculate it, and what they provide now. Previously, Facebook would count any action as engagement; now they only count likes/reactions, comments, link clicks, and shares.

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Economic Development Division
Goal: To actively pursue opportunities in the areas of business aLraction, 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 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Ongoing
Target
Maintain Economic Development Business Connect
Subscribers 3,000 6,000 8,525 8,000
Economic Development Business Visits, Workshops &
Events 3 7 15 20 peryear
Multimedia Division
Multimedia Division has been moved under the Innovation & Technology Department.

Sustainability Division
Sustainability Division has been moved under the Public Works Department.

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Workload Indicators
City Clerk Division
Workload Indicator FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
City Council minutes for regular meetings presented for Council approval by the following regular meeting
21/21 20/20 9/9
Adopted City Council resolutions and ordinances processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed document
134/140; 16/16 160/160; 10/10 18/70; 4/4
Public Record Act requests responded to by the Statutory deadline date
240/240 271/274 109/110
Office of Communications
Workload Indicator FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Social Media Engagement: Post per year (Facebook, Nextdoor, Twitter, Instagram)
1,161 500 432
Number of YouTube videos created 17 31 26
Number of Community Information and Outreach Program
products provided (newsletters, press releases, website news postings)
185 150 257
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Economic Development Division
Workload Indicator FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Meetings with large groups/organizations; appointments with brokers, prospective business owners, business owners and operators, City staff, etc. 50 50 20
Special events, including small business workshops and
seminars, ICSC conferences and events, ribbon cuttings and grand openings, and Small Business Saturday Celebration 7 7 4 Number of Business Connect Newsletter editions 4 3 1
Multimedia Division
Multimedia Division has been moved under the Innovation & Technology Department.

Sustainability Division
Sustainability Division has been moved under the Public Works Department.

Proposed Budget
It is recommended that City Council approve a budget of $6,553,963 for the Administration department. This represents a decrease of $1,205,367 (-15.5%) from the FY 2023-24 Adopted Budget.

The decrease is due to a change of three positions, two of which are sustainability positions that were transferred to Public Works and the elimination of a vacant limited term Special Projects Executive. Additional reductions were achieved in contracts and materials due to service level reductions.

The following table illustrates the Service-Level Reductions for the department.

Grouping Service-Level
Reduction Fiscal Impact Service-Level Impact Narrative
Fiscal Accountability Contract Services and
Materials $(226,561)
Potential need for additional
appropriations if unanticipated legal
costs arise
Fiscal Accountability
Material operations
that are no longer
needed
$(8,892) Reduction aligns budget with actuals
Fiscal Accountability Econ Dev Strategy
Outreach $(20,000)
Reduction will result in minimal
impact as existing staff is already
implementing these duties.

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Operations and
Maintenance
- Management Analyst
reclassification to
Administrative
Assistant
- Removal of vacant
shared Senior Office
Assistant between
CMO and City Clerk
- Removal of PT
Intern
$(61,755)
Staffing for the department has been
reorganized for efficiency and to
streamline workload.

Operations and
Maintenance
Reduced a limited term
Project Executive
position
$(404,221) Use of cost recoverable contract
services will be used instead
Operations and
Maintenance
This reduction will
remove funding for a
PT Intern and
Overtime
Compensation. This
reduction also includes
the reclassification of a
Public Information
Officer to a
Communications
Coordinator.
$(78,249)
Staffing for the department has been
reorganized for efficiency and to
streamline workload.

Operations and
Maintenance
Reduce cost of the
quarterly Scene
Newsletter by moving
to a digital-only
publication.
$(53,600)
Residents will no longer receive the
Scene in the mail and will have to
find the Scene on a City webpage
instead.

Operations and
Maintenance
Minimum Wage
Enforcement and
Mailers
$(23,202)
Reduction will result in minimal
impact on staff time to administer
enforcement of min wage annual
increases. Removing printed mailers
will require businesses to print it out
and post in their place of business.

Operations and
Maintenance
Regulate Diversified
Retail $(5,000)
Reduction will result in minimal
impact as existing staff is already
implementing these duties.

Total $(881,480)
FY 2024-25 Proposed Budget Administration 238
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The following table shows the special project for the department.

Special Project Appropriations Revenue Funding
Source Description StrategicGoal
The Rise:

Construction
Stakeholder
Engagement
$100,000 $100,000 General
Fund
City Work Program Project. Improve
engagement with stakeholders to
ensure progress with construction
and reduce barriers.

Quality
of Life
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Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures

61.1%

22.6%

15.5%
City Manager
City Attorney
City Clerk
City Manager Discretionary
$6.39M $6.51M
$7.76M
$6.55M
2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget FY 2024-25 Proposed Budget Administration 240
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Intergovernmental Revenue $ 6,074 $ 1,025,000 $ 111,500 $ - Charges for Services $ 1,739,136 $ 1,485,073 $ 1,149,857 $ 2,825,126 Miscellaneous Revenue $ 11,326 $ 4,357 $ - $ -
Transfers In $ 477,507 $ - $ - $ -
Total Revenues $ 2,234,043 $ 2,514,430 $ 1,261,357 $ 2,825,126 Expenditures
Employee Compensation $ 3,301,226 $ 3,434,456 $ 4,069,298 $ 3,304,638 Employee Benefits $ 1,297,532 $ 1,179,676 $ 1,753,607 $ 1,540,703 Materials $ 311,781 $ 299,269 $ 400,223 $ 212,796
Contract Services $ 649,787 $ 980,642 $ 941,380 $ 786,970 Cost Allocation $ 526,940 $ 468,859 $ 518,051 $ 546,360 Special Projects $ 299,938 $ 148,484 $ 10,000 $ 100,000 Contingencies $ 135 $ - $ 66,771 $ 62,496
Total Expenditures $ 6,387,339 $ 6,511,386 $ 7,759,330 $ 6,553,963 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 4,153,294 $ 3,996,953 $ 6,497,973 $ 3,728,837 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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0 1.00 1.00 2.00
ASSISTANT CITY MANAGER 1.00 2.00 1.00 1.00
ASSIST TO THE CITY MNGR 1.00 0 0 0
CITY ATTORNEY 0 1.00 1.00 1.00
CITY CLERK 1.00 1.00 1.00 1.00
CITY MANAGER 1.00 1.00 1.00 1.00
FY 2024-25 Proposed Budget Administration 241
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COMMS AND MARKETING

COORDINATOR
0 0 0 0.85
COMMUNICATIONS ANALYST 0 1.00 0 0
COMMUNITY OUTREACH SPECIALIST 1.20 0.90 0.90 0.90
COMMUNITY RELATIONS COORD 0.75 1.00 1.00 1.00
DEPUTY CITY CLERK 1.00 1.00 1.00 1.00
DEPUTY CITY MANAGER 0 1.00 1.00 1.00

ECONOMIC DEVELOPMENT

MANAGER

1.00 1.00 1.00 1.00
EMERGENCY MANAGER 0 0 0.95 0.95

EMERGENCY SERVICES

COORDINATOR

0.95 0.95 0 0

ENVIRONMENTAL PROGRAMS

ASSISTANT

0.35 0.35 0.35 0
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
LEGISLATIVE AIDE 0 1.00 0 0
MANAGEMENT ANALYST 2.70 2.70 2.70 1.00

MULTIMEDIA COMMUNICATIONS
SPEC

3.00 1.50 0 0
PUBLIC INFORMATION OFFICER 0.85 0.85 0.85 0
SENIOR ASSISTANT CITY ATTORNEY 0 1.00 1.00 1.00
SENIOR MANAGEMENT ANALYST 0 0 1.00 1.00
SPECIAL PROJECT EXECUTIVE 0 0 1.00 0
SR OFFICE ASSISTANT 1.80 1.80 1.80 1.80
SUSTAINABILITY MANAGER 0.75 0.75 0.75 0
Total 19.85 24.30 21.80 19.00
Position Title 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
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City Manager
Budget Unit 100-12-120
General Fund - City Manager - City Manager
Budget at a Glance
2025 Proposed Budget
Total Revenues $ 1,552,614
Total Expenditures $ 2,177,621
Fund Balance $ -
General Fund Costs $ 625,007
% Funded by General Fund 28.7%
Total Staffing 6.6 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.

Research and respond to concerns regarding City operations of the City.

Ensure that engagement and transparency are a City priority.

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 $2,177,621 for the City Manager program. This represents a decrease of $204,784 (-8.6%) from the FY 2023-24 Adopted Budget.

The decrease is due to the elimination of one vacant, limited term Special Projects Executive and is offset by increases in Cost Allocation and a new Council Work Program item in special projects. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The table below shows Service-Level Reductions for this program.

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Grouping Service-Level Reduction Fiscal Impact Service-Level Impact Narrative
Positions
- Management Analyst reclassification to
Administrative Assistant
- Removal of vacant shared Senior Office Assistant
between CMO and City Clerk
- Removal of PT Intern
$(101,415)
Staffing for the
department has been
reorganized for efficiency
and to streamline
workload.

Materials Reduction in Materials allocated for removed
positions $(8,200) Reduction aligns budgetwith actuals.

Total $(109,615)
Special Projects
The following table shows the special projects for the fiscal year.

Special Project Appropriations Revenue Funding
Source Description StrategicGoal
The Rise: Construction
Stakeholder
Engagement
$100,000 $100,000 General
Fund
City Work Program Project.

Improve engagement with
stakeholders to ensure
progress with construction
and reduce barriers.

Quality of
Life
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ 637,444 $ 646,348 $ 617,164 $ 1,552,614 Total Revenues $ 637,444 $ 646,348 $ 617,164 $ 1,552,614 Expenditures
Employee Compensation $ 968,245 $ 974,503 $ 1,579,939 $ 1,280,208 Employee Benefits $ 304,009 $ 285,760 $ 674,247 $ 569,757 Materials $ 16,993 $ 53,361 $ 54,628 $ 45,689
Contract Services $ 70,416 $ 113,975 $ 72,008 $ 78,008
Cost Allocation $ - $ - $ - $ 102,413
Special Projects $ - $ - $ - $ 100,000
Contingencies $ - $ - $ 1,583 $ 1,546
Total Expenditures $ 1,359,663 $ 1,427,599 $ 2,382,405 $ 2,177,621 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 722,219 $ 781,251 $ 1,765,241 $ 625,007 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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0 0 0 1.00
ASSISTANT CITY MANAGER 1.00 2.00 1.00 1.00
ASSIST TO THE CITY MNGR 1.00 0 0 0
CITY MANAGER 1.00 1.00 1.00 1.00
DEPUTY CITY MANAGER 0 1.00 1.00 1.00

EXEC ASST TO THE CITY

COUNCIL

0.50 0.50 0.50 0.50
LEGISLATIVE AIDE 0 1.00 0 0
MANAGEMENT ANALYST 1.00 1.00 1.00 0

SENIOR MANAGEMENT

ANALYST
0 0 1.00 1.00
SPECIAL PROJECT EXECUTIVE 0 0 1.00 0
SR OFFICE ASSISTANT 0.40 0.40 0.40 1.10
Total 4.90 6.90 6.90 6.60
Staff is being reallocated to beLer reflect actual time spent in this program. In addition, a Management Analyst position has been underfilled with an Administrative Assistant position, resulting in budget savings.

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Sustainability
Budget Unit 100-12-122
General Fund - City Manager - Sustainability
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.0 FTE
Program Overview
In FY 2023-2024, this program was moved to Public Works. A complete discussion of the program can be found under Budget Unit 100-81-122. 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.

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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Intergovernmental Revenue $ - $ - $ 111,500 $ -
Miscellaneous Revenue $ 11,326 $ 14,822 $ - $ -
Transfers In $ 327,106 $ - $ - $ -
Total Revenues $ 338,432 $ 14,822 $ 111,500 $ -
Expenditures
Employee Compensation $ 257,523 $ 272,016 $ 315,081 $ - Employee Benefits $ 126,271 $ 102,200 $ 136,429 $ -
Materials $ 12,899 $ 16,113 $ 20,366 $ -
Contract Services $ 64,815 $ 67,997 $ 52,850 $ -
Cost Allocation $ 249,106 $ 182,388 $ 178,396 $ -
Special Projects $ 265,652 $ 106,200 $ - $ -
Contingencies $ - $ - $ 915 $ -
Total Expenditures $ 976,266 $ 746,914 $ 704,037 $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 637,833 $ 732,091 $ 592,537 $ -
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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget

ENVIRONMENTAL PROGRAMS

ASSISTANT

0.35 0.35 0.35 0
MANAGEMENT ANALYST 0.70 0.70 0.70 0
SUSTAINABILITY MANAGER 0.75 0.75 0.75 0
Total 1.80 1.80 1.80 0
FY 2024-25 Proposed Budget Administration 248
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Office of Communications
Budget Unit 100-12-126
General Fund - City Manager - Office of Communications
Budget at a Glance
2025 Proposed Budget
Total Revenues $ 545,188
Total Expenditures $ 416,779
Fund Balance $ -
General Fund Costs $ (128,409)
% Funded by General Fund -30.8%
Total Staffing 2.0 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, bimonthly newsletter, quarterly newsletter, 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 $416,779 for the Office of Communications program.

This represents a decrease of $263,488 (-38.7%) from the FY 2023-24 Adopted Budget.

The decrease is due to reduction in positions and materials and contracts in service level reductions and is offset by increase in cost allocation plan charges. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The table below shows Service-Level Reductions for this program.

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Grouping Service-Level Reduction Fiscal
Impact Service-Level Impact Narrative
Positions
This reduction will remove funding for a Parttime Intern and Overtime Compensation. This reduction
also includes the reclassification of a Public
Information Officer to a Communications
Coordinator.
$(78,249)
Staffing for the department has
been reorganized for efficiency
and to streamline workload.

Cupertino
Scene
Reduce cost of the quarterly Scene Newsletter
by moving to a digital-only publication. $(53,600)
Residents will no longer receive
the Scene in the mail and will
have to find the Scene on a City
webpage instead.

Total $(131,849)
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ - $ - $ - $ 545,188
Total Revenues $ - $ - $ - $ 545,188
Expenditures
Employee Compensation $ 300,055 $ 247,454 $ 350,688 $ 228,455 Employee Benefits $ 127,829 $ 90,120 $ 150,231 $ 124,460 Materials $ 141,280 $ 138,360 $ 152,134 $ 17,152
Contract Services $ 23,731 $ 133,287 $ 25,000 $ 14,110
Cost Allocation $ - $ - $ - $ 32,211
Contingencies $ - $ - $ 2,214 $ 391
Total Expenditures $ 592,895 $ 609,221 $ 680,267 $ 416,779 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 592,894 $ 609,221 $ 680,267 $ (128,409) 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 2024-25 Proposed Budget Administration 250
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Position Title 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget

COMMS AND MARKETING

COORDINATOR
0 0 0 0.85
COMMUNICATIONS ANALYST 0 1.00 0 0
COMMUNITY OUTREACH SPECIALIST 1.20 0.90 0.90 0.90
PUBLIC INFORMATION OFFICER 0.85 0.85 0.85 0
SR OFFICE ASSISTANT 0.90 0.90 0.90 0.20
Total 2.95 3.65 2.65 1.95
Staff time is being reallocated to better reflect actual time spent in this program.

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Multimedia
Budget Unit 100-12-305
General Fund - City Manager - Multimedia
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.0 FTE
Program Overview
In FY 2023-24, this program was moved to Innovation & Technology. A complete discussion of the program can be found under Budget Unit 100-31-305. 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.

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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Intergovernmental Revenue $ 6,074 $ - $ - $ -
Charges for Services $ 414,196 $ 354,821 $ 167,188 $ -
Total Revenues $ 420,270 $ 354,821 $ 167,188 $ -
Expenditures
Employee Compensation $ 495,765 $ 312,438 $ - $ -
Employee Benefits $ 217,343 $ 139,867 $ - $ -
Materials $ 46,049 $ 22 $ 2,745 $ -
Contract Services $ 73,083 $ 17,236 $ 13,800 $ -
Special Projects $ 19,541 $ 9,549 $ - $ -
Contingencies $ - $ - $ 207 $ -
Total Expenditures $ 851,781 $ 479,112 $ 16,752 $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 431,510 $ 124,290 $ (150,436) $ -
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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget

MULTIMEDIA COMMUNICATIONS
SPEC

3.00 1.50 0 0
Total 3.00 1.50 0 0
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Public Access Support
Budget Unit 100-12-307
General Fund - City Manager - Public Access Support
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
In FY 2023-2024, this program was moved to Innovation & Technology. A complete discussion of the program can be found under Budget Unit 100-31-305. 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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ 69,815 $ 73,306 $ 45,000 $ -
Cost Allocation $ 2,533 $ 2,251 $ 2,169 $ -
Contingencies $ - $ - $ 563 $ -
Total Expenditures $ 72,348 $ 75,557 $ 47,732 $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 72,348 $ 75,557 $ 47,732 $ -
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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
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 224,749
Fund Balance $ -
General Fund Costs $ 224,749
% 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 $224,749 for the Community Outreach and Neighborhood Watch program. This represents a decrease of $27,354 (-10.9%) from the FY 2023-24 Adopted Budget.

The decrease is due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition to a reduction in special projects and service level reductions.

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The table below shows Service-Level Reductions for this program.

Grouping Service-Level Impact Fiscal
Impact Service-Level Impact Narrative
Operations and
Maintenance
This reduction will remove
funding for a PT Intern and
Overtime Compensation. This
reduction also includes the
reclassification of a Public
Information Officer to a
Communications Coordinator.
$(78,249)
Staffing for the department has been
reorganized for efficiency and to
streamline workload.

Operations and
Maintenance
Reduce cost of the quarterly
Scene Newsletter by moving to a
digital-only publication.
$(53,600)
Residents will no longer receive the
Scene in the mail and will have to
find the Scene on a City webpage
instead.

Total $(131,849)
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Transfers In $ 1,500 $ - $ - $ -
Total Revenues $ 1,500 $ - $ - $ -
Expenditures
Employee Compensation $ 40,018 $ 100,034 $ 106,151 $ 109,783 Employee Benefits $ 20,309 $ 40,723 $ 49,441 $ 52,924
Materials $ 1,964 $ 8,047 $ 8,290 $ 8,290
Cost Allocation $ 68,769 $ 58,538 $ 78,117 $ 53,648
Special Projects $ - $ - $ 10,000 $ -
Contingencies $ - $ - $ 104 $ 104
Total Expenditures $ 131,060 $ 207,342 $ 252,103 $ 224,749 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 129,560 $ 207,342 $ 252,103 $ 224,749 Staffing
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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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget

COMMUNITY RELATIONS
COORD

0.75 1.00 1.00 1.00
Total 0.75 1.00 1.00 1.00
There are no changes to the current level of staffing.

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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
2025 Proposed Budget
Total Revenues $ 152,678
Total Expenditures $ 645,629
Fund Balance $ -
General Fund Costs $ 492,951
% Funded by General Fund 76.4%
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.

Manage the City's Contract for Law Enforcement Services with the Santa Clara County Sheriff's Office.

Serve as liaison to the Santa Clara County Fire Department.

Proposed Budget
It is recommended that City Council approve a budget of $645,629 for the Office of Emergency Management program. This represents a decrease of $108,139 (-14.3%) from the FY 2023-24 Adopted Budget.

The decrease is mainly due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, streamlining materials and contracts to align budget with actuals also resulted in decreased costs.

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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Intergovernmental Revenue $ - $ 1,025,000 $ - $ -
Charges for Services $ - $ - $ - $ 152,678
Transfers In $ 144,039 $ - $ - $ -
Total Revenues $ 144,039 $ 1,025,000 $ - $ 152,678
Expenditures
Employee Compensation $ 239,898 $ 317,068 $ 355,040 $ 356,968 Employee Benefits $ 106,987 $ 130,230 $ 160,346 $ 176,079 Materials $ 8,384 $ 13,394 $ 29,925 $ 23,997
Contract Services $ 4,544 $ 156 $ 2,120 $ 2,120
Cost Allocation $ 188,792 $ 177,604 $ 205,936 $ 86,139
Special Projects $ 4,745 $ 18,677 $ - $ -
Contingencies $ - $ - $ 401 $ 326
Total Expenditures $ 553,350 $ 657,129 $ 753,768 $ 645,629 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 409,312 $ (367,872) $ 753,768 $ 492,951 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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
EMERGENCY MANAGER 0 0 0.95 0.95

EMERGENCY SERVICES

COORDINATOR

0.95 0.95 0 0
MANAGEMENT ANALYST 1.00 1.00 1.00 1.00
Total 1.95 1.95 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
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 541,075
Fund Balance $ -
General Fund Costs $ 541,075
% Funded by General Fund 100.0%
Total Staffing 1.0 FTE
Program Overview
The Economic Development Division oversees the development and implementation of policies and programs to promote business resiliency while undertaking a wide variety of business aLraction, retention, and expansion efforts.

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 $541,075 for the Economic Development program.

This represents an increase of $74,264 (15.9%) from the FY 2023-24 Adopted Budget.

The increase is due to increases in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023. The division budget related to materials and contracts has been reduced by $53,034 from the FY 2023-24 Adopted Budget.

The table below shows Service-Level Reductions for this program.

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Grouping Service-Level Reduction Fiscal
Impact Service-Level Impact Narrative
Operations and
Maintenance
Minimum Wage
Enforcement and Mailers $(23,202)
Reduction will result in minimal impact on staff
time to administer enforcement of min wage
annual increases. Removing printed mailers will
require businesses to print it out and post in
their place of business.

Fiscal
Accountability
Material operations that are
no longer needed $(8,892) Reduction aligns budget with actuals.

Fiscal
Accountability
Econ Dev Strategy
Outreach $(20,000)
Reduction will result in minimal impact as
existing staff is already implementing these
duties.

Operations and
Maintenance Regulate Diversified Retail $(5,000)
Reduction will result in minimal impact as
existing staff is already implementing these
duties.

Total $(57,094)
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Transfers In $ 4,862 $ - $ - $ -
Total Revenues $ 4,862 $ - $ - $ -
Expenditures
Employee Compensation $ 125,701 $ 161,796 $ 206,441 $ 194,086 Employee Benefits $ 46,931 $ 52,073 $ 82,324 $ 99,396
Materials $ 21,189 $ 19,101 $ 39,236 $ 17,648
Contract Services $ 69,780 $ 15,449 $ 87,646 $ 56,200
Cost Allocation $ 13,227 $ 41,781 $ 49,578 $ 172,822
Special Projects $ 10,000 $ 14,058 $ - $ -
Contingencies $ 135 $ - $ 1,586 $ 923
Total Expenditures $ 286,963 $ 304,258 $ 466,811 $ 541,075 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 282,100 $ 304,258 $ 466,811 $ 541,075 FY 2024-25 Proposed Budget Administration 262
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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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget

ECONOMIC DEVELOPMENT

MANAGER

1.00 1.00 1.00 1.00
Total 1.00 1.00 1.00 1.00
There are no changes to the current level of staffing.

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City Clerk
Budget Unit 100-13-130
General Fund - City Clerk - City Clerk
Budget at a Glance
2025 Proposed Budget
Total Revenues $ 201,273
Total Expenditures $ 828,734
Fund Balance $ -
General Fund Costs $ 627,461
% Funded by General Fund 75.7%
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, managing official elections, and providing 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.

Process and sort routine incoming and outgoing mail for each department.

Proposed Budget
It is recommended that City Council approve a budget of $828,734 for the City Clerk program. This represents an increase of $54,332 (7.0%) from the FY 2023-24 Adopted Budget.

The increase is due to increases in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ 144,551 $ 121,651 $ 87,435 $ 201,273 Total Revenues $ 144,551 $ 121,651 $ 87,435 $ 201,273
Expenditures
Employee Compensation $ 352,315 $ 388,186 $ 476,192 $ 475,265 Employee Benefits $ 139,124 $ 121,637 $ 207,511 $ 222,740 Materials $ 23,445 $ 25,946 $ 42,301 $ 40,578
Contract Services $ 45,355 $ 54,812 $ 47,278 $ 39,594
Cost Allocation $ - $ - $ - $ 49,555
Contingencies $ - $ - $ 1,120 $ 1,002
Total Expenditures $ 560,239 $ 590,581 $ 774,402 $ 828,734 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 415,688 $ 468,930 $ 686,967 $ 627,461 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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget ADMINISTRATIVE ASSISTANT 0 1.00 1.00 1.00
CITY CLERK 1.00 1.00 1.00 1.00
DEPUTY CITY CLERK 1.00 1.00 1.00 1.00
SR OFFICE ASSISTANT 0.50 0.50 0.50 0.50
Total 2.50 3.50 3.50 3.50
There are no changes to the current level of staffing.

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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
2025 Proposed Budget
Total Revenues $ 28,829
Total Expenditures $ 43,031
Fund Balance $ -
General Fund Costs $ 14,202
% Funded by General Fund 33.0%
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 $43,031 for the Duplicating and Mail Services program. This represents an increase of $2,223 (5.4%) from the FY 2023-24 Adopted Budget.

This increase is due to the rising cost of postage and mail service equipment.

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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ - $ - $ - $ 28,829
Total Revenues $ - $ - $ - $ 28,829
Expenditures
Materials $ 23,733 $ 20,557 $ 30,471 $ 31,500
Contract Services $ 3,738 $ 922 $ 6,500 $ 11,000
Cost Allocation $ 4,366 $ 3,674 $ 3,375 $ -
Contingencies $ - $ - $ 462 $ 531
Total Expenditures $ 31,837 $ 25,153 $ 40,808 $ 43,031
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 31,838 $ 25,153 $ 40,808 $ 14,202
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
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 142,116
Fund Balance $ -
General Fund Costs $ 142,116
% 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 commiLees, including Nomination Papers, Candidate Statements of Qualification, Campaign Financial Disclosure Statements, and Statements of Economic Interest.

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 $142,116 for the Elections program. This represents an increase of $141,139 (14446.2%) from the FY 2023-24 Adopted Budget.

This increase is due to the election cycle.

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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Miscellaneous Revenue $ - $ (10,465) $ - $ -
Total Revenues $ - $ (10,465) $ - $ -
Expenditures
Materials $ 847 $ (11,726) $ 491 $ 10,345
Contract Services $ - $ 120,921 $ - $ 130,000
Cost Allocation $ 147 $ 2,623 $ 480 $ 17
Contingencies $ - $ - $ 6 $ 1,754
Total Expenditures $ 994 $ 111,818 $ 977 $ 142,116
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 994 $ 122,283 $ 977 $ 142,116
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
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 50,000
Fund Balance $ -
General Fund Costs $ 50,000
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
The City Manager Contingency program is designed to address unforeseen citywide expenses that may arise during the year. To provide a cushion for any unexpected expenses, a contingencies expenditure category was added to each program in FY 2013-14. This category was established to cover any unforeseen expenses that may arise during the year. However, in FY 2020-21, the program contingencies were reduced from 5% of budgeted materials and contract services to 2.5%.

To provide a second layer of contingency for any unexpected expenditures, the City Manager Contingency was established. This contingency is in addition to the program contingency and is used for unexpected expenditures that exceed the program contingency. In FY 2020-21, the City Manager Contingency was also reduced from 5% of budgeted General Fund materials and contract services to 2.5%.

To further reduce expenditures, in FY 2021-22, the City Manager Contingency was reduced to $75,000. In FY 2022-23, as part of an expenditure-reduction strategy, program contingencies are being reduced to 1.25%, and the City Manager Contingency is being reduced to $50,000. These measures are aimed at maintaining fiscal responsibility while ensuring that unexpected expenses can still be addressed.

The City has a track record of underspending in this category. The program contingency budget may be used by departments to cover unanticipated expenses at their discretion. On the other hand, the City Manager Contingency requires the approval of the City Manager before it can be used. Any usage of the City Manager Contingency is reported by staff to the City Council as part of the quarterly financial report. This reporting ensures transparency and accountability in the use of contingency funds.

Proposed Budget
It is recommended that City Council approve a budget of $50,000 for the City Manager Contingency program.

This budget is unchanged from the prior year.

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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ - $ 2,633 $ - $ -
Contingencies $ - $ - $ 50,000 $ 50,000
Total Expenditures $ - $ 2,633 $ 50,000 $ 50,000
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ 2,633 $ 50,000 $ 50,000
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
2025 Proposed Budget
Total Revenues $ 344,544
Total Expenditures $ 1,484,229
Fund Balance $ -
General Fund Costs $ 1,139,685
% Funded by General Fund 76.8%
Total Staffing 3.0 FTE
Program Overview
The City ALorney is appointed by the City Council to manage the legal affairs of the City, including the operation of the City ALorney’s Office. The City ALorney’s Office provides all legal services that are needed to support the City Council, City Commissions and CommiLees, City Manager, department directors, and City staff.

Service Objectives
The mission of the City ALorney’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 maLers 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 $1,484,229 for the City ALorney program. This represents a decrease of $105,039 (-6.6%) from the FY 2023-24 Adopted Budget.

The decrease is due to a reduction in Contract Services, Materials, and Employee Compensation due to estimated compensation increases in the prior fiscal year which did not come to fruition. This decrease is offset by an increase in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

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The table below shows Service-Level Reductions for this program.

Grouping Service-Level
Reduction
Fiscal
Impact
Service-Level Impact Narrative
Fiscal
Accountability
Contract Services and
Materials
$(226,561) Potential need for additional appropriations if unanticipated legal costs arise
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ 542,945 $ 362,253 $ 278,070 $ 344,544 Total Revenues $ 542,945 $ 362,253 $ 278,070 $ 344,544
Expenditures
Employee Compensation $ 521,706 $ 660,961 $ 679,766 $ 659,873 Employee Benefits $ 208,729 $ 217,066 $ 293,078 $ 295,347 Materials $ 14,998 $ 16,094 $ 19,636 $ 17,597
Contract Services $ 224,510 $ 379,948 $ 589,178 $ 455,938 Cost Allocation $ - $ - $ - $ 49,555
Contingencies $ - $ - $ 7,610 $ 5,919
Total Expenditures $ 969,943 $ 1,274,069 $ 1,589,268 $ 1,484,229 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 426,998 $ 911,816 $ 1,311,198 $ 1,139,685 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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
CITY ATTORNEY 0 1.00 1.00 1.00
LEGAL SERVICES MANAGER 1.00 1.00 1.00 1.00

SENIOR ASSISTANT CITY

ATTORNEY
0 1.00 1.00 1.00
Total 1.00 3.00 3.00 3.00
There are no changes to the current level of staffing.

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Law Enforcement
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Department Overview
Budget Units
Budget Unit Program 2025 Proposed Budget
Law Enforcement $ 18,648,806
100-20-200 Law Enforcement $ 18,648,806
100-20-201 Interoperability Project $ -
Total $ 18,648,806
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Budget at a Glance
2025 Proposed Budget
Total Revenues $ 1,790,408
Total Expenditures $ 18,648,806
Fund Balance $ -
General Fund Costs $ 16,858,398
% Funded by General Fund 90.4%
Total Staffing FTE
Organization
Captain Neil Valenzuela, 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 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Ongoing
Target
Response time for emergency calls
Priority 1 3.27 6.57 5.78 5 minutes
Priority 2 6.66 7.46 6.69 9 minutes
Priority 3 11.73 12.72 8.18 20 minutes
% programs maintaining minimum attendance
Teen & Citizen Academy 98% 90% 90% 80%
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Workload Indicators
Workload Indicator FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Total Priority 1 Calls 76 85 30
Total Priority 2 Calls 4,027 4,263 2,548
Total Priority 3 Calls 3,624 3,161 1,965
Total Teen/Community Academy Participants 39 18 18
Proposed Budget
It is recommended that City Council approve a budget of $18,648,806 for the Law Enforcement department.

This represents an increase of $836,198 (4.7%) from the FY 2023-24 Adopted Budget.

The increase is due to an increase in Law Enforcement Services contract in addition to supplemental law enforcement services. Supplemental law enforcement services also have offseLing revenue and an administrative fee paid to the City.

The following table illustrates the Service-Level Reductions for the department.

Grouping Service-Level
Reduction Fiscal Impact Service-Level Impact Narrative
Fiscal Accountability Align law enforcement
budget with actuals $(1,000,000) Reduction aligns budget with actuals.

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Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
100.0%
Law Enforcement
$15.7M $15.3M
$17.8M
$18.6M
2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget FY 2024-25 Proposed Budget Law Enforcement 281
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Intergovernmental Revenue $ 161,285 $ 165,271 $ 161,094 $ 161,094 Charges for Services $ 558,777 $ 277,277 $ 115,000 $ 402,500 Fines and Forfeitures $ 188,053 $ 168,859 $ 180,000 $ 180,000 Miscellaneous Revenue $ 887,259 $ 948,721 $ 1,006,552 $ 1,046,814 Transfers In $ 972,987 $ - $ - $ -
Total Revenues $ 2,768,361 $ 1,560,128 $ 1,462,646 $ 1,790,408 Expenditures
Materials $ 222 $ 404 $ 408 $ 424
Contract Services $ 15,547,160 $ 15,122,638 $ 17,667,516 $ 18,285,280 Cost Allocation $ 168,433 $ 153,891 $ 144,684 $ 363,102 Total Expenditures $ 15,715,815 $ 15,276,933 $ 17,812,608 $ 18,648,806 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 12,947,454 $ 13,716,805 $ 16,349,962 $ 16,858,398 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
2025 Proposed Budget
Total Revenues $ 1,790,408
Total Expenditures $ 18,648,806
Fund Balance $ -
General Fund Costs $ 16,858,398
% Funded by General Fund 90.4%
Total Staffing FTE
Program Overview
The Law Enforcement program provides law enforcement, emergency communications, and School Resource Officers. 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. 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. Furthermore, the City receives an annual donation from Apple for enhanced law enforcement services (two additional deputies) available to the entire community. The donation is $1,046,814 for FY 2024-25.

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.

Provide annual Teen Academy during summer months providing community engagement and an introduction to law enforcement for youth (budgeted in the Public Safety Commission).

Proposed Budget
It is recommended that City Council approve a budget of $18,648,806 for the Law Enforcement program. This represents an increase of $836,198 (4.7%) from the FY 2023-24 Adopted Budget.

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This increase is due to an increased need for supplemental law enforcement services, which are offset by revenues from the requesting private entities. The increase is also due to increases in Cost Allocation expenses.

Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The table below shows Service-Level Reductions for this program.

Grouping Service Level Reduction Fiscal Impact Service Level Reduction Impact Narrative
Fiscal Accountability Align law enforcement budget
with actuals $(1,000,000) Reduction aligns budgetwith actuals.

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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Intergovernmental Revenue $ 161,285 $ 165,271 $ 161,094 $ 161,094 Charges for Services $ 558,777 $ 277,277 $ 115,000 $ 402,500 Fines and Forfeitures $ 188,053 $ 168,859 $ 180,000 $ 180,000 Miscellaneous Revenue $ 887,259 $ 948,721 $ 1,006,552 $ 1,046,814 Transfers In $ 972,987 $ - $ - $ -
Total Revenues $ 2,768,361 $ 1,560,128 $ 1,462,646 $ 1,790,408 Expenditures
Materials $ 222 $ 404 $ 408 $ 424
Contract Services $ 15,547,160 $ 15,122,638 $ 17,667,516 $ 18,285,280 Cost Allocation $ 167,594 $ 153,007 $ 144,684 $ 363,102 Total Expenditures $ 15,714,976 $ 15,276,049 $ 17,812,608 $ 18,648,806 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 12,946,615 $ 13,715,921 $ 16,349,962 $ 16,858,398 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
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
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 fiKeen cities and towns, and all special districts.

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.

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
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.

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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Cost Allocation $ 839 $ 884 $ - $ -
Total Expenditures $ 839 $ 884 $ - $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 839 $ 884 $ - $ -
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 2025 Proposed Budget
I&T Administration $ 77,806
610-30-300 Innovation & Technology Administration $ 77,806 Video $ 1,179,061
100-31-305 Video $ 1,179,061
Applications $ 1,943,932
100-32-308 Applications $ 1,943,932
Infrastructure $ 2,079,379
610-34-310 Infrastructure $ 2,079,379
GIS $ 1,443,249
610-35-986 GIS $ 1,443,249
Total $ 6,723,427
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Budget at a Glance
2025 Proposed Budget
Total Revenues $ 5,113,586
Total Expenditures $ 6,723,427
Fund Balance $ (42,256)
General Fund Costs $ 1,567,585
% Funded by General Fund 23.3%
Total Staffing 13.9 FTE
Organization
Bill Mitchell, Chief Technology Officer
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As part of an expenditure Reduction Strategy, one IT Manager position will be reduced resulting from an internal Chief Technology Officer recruitment.

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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.

Performance Measure
FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Ongoing
Target
GIS: % of time spent Developing Application 40% 50% 55% 65% GIS: % of time Maintaining applications 60% 50% 45% 35% GIS: Increase Property Information (Internal/External) site visits per month 3,344/616 2807/1593 3546/1606 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 68% 45/31 45/31 45/45
100%
Infrastructure: Percentage based upon number of
scheduled projects/Number of projects completed on time 89% N/A 50% 100% Infrastructure: Percentage based upon number of
HelpDesk tickets/SLA measurements 93% 85.9% 91.5% 90%
Infrastructure: % Customer satisfaction based upon
Satisfaction Rate from helpdesk tickets 98.0% 99.6% 95.7%% 85% Infrastructure: % of network uptime (not including
planned maintenance) 99.9% 99.9% 99.9% 99%
Applications: % of citywide-enterprise application project management performed on time and on budget 96% 98.1%% 96% 95% Applications: Number of website site visits/Number of
site hits 886,899 857,387 438,732
5%
annual
increase
Applications: Number of support request for the
applications support per month 870 640 330 20
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Multimedia Division
Performance Measure
FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Ongoing
Target
Percentage of total video productions performed vs
scheduled productions (city meetings excluded) 356% 57/16 220% 44/20 155%
28/18 100%
Percentage of total engineering projects vs scheduled
projects
200%
10/5
182%
11/6
133%
4/3 100%
Total video views on YouTube* 141,571 135,641 80,351
5%
annual
increase
* Unable to retrieve Granicus viewership data due to error in their reporting module FY 2024-25 Proposed Budget Innovation and Technology 293 847
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Workload Indicators
Applications Division
Workload Indicator FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Number of tasks for Enterprise Programs Support &
Maintenance - includes enterprise business platforms like ERP, Land Management System, Recreation System, City
Digital Records, City Website and many programs like Admin Services digital transformation, citywide permitting, licensing, and enforcement solutions.
1,950
2,250
Standardizing
tracking
process
2,450
Number of Hours for Application Development - includes
custom software solutions like Bid Management solution and Permit Parking software solutions. Application development for these kind of software solution goes through all stages of Software Development Life Cycle (SDLC) of Requirementgathering, Analysis, Designing, Coding, Testing and Deployment of these custom software solutions.
850 1,300 1,450
% of Project Implementation Performed on Time and Budget for Citywide Applications - This 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.
94% 95% 95%
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Infrastructure Division
Workload Indicator FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
% of helpdesk requests completed 48 hours or less - Prompt customer service and attention is a critical customer service measurement to ensure staff is able to perform and excel with their daily duties. This core responsibilty is performed by two Network Specialists serving 200-250 staff depending on the time of year. Infrastructure's goal is to provide a service level where 90% of all helpdesk service requests are completed in 48 hours or less.
93% 85.9% 91.5%
% of network uptime - Maintain availability and accessibility of the City's network infrastructure during business hours of operation. The City's local and wide area networks require high reliability to ensure various applications (ERP, GIS, Land management, etc.) and services (Internet, e-mail, shared files, City web services, etc). are available for staff and members of the public.

99.9% 99.9% 99.9%
Number of IT Projects Completed - Project 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

88.89% 9/8 N/A 50% 1/2
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GIS Division
Workload Indicator FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Hours Spent on Development - The GIS Division builds
internal and external web applications, business intelligence tools, digital workflows, and configures enterprise
applications.
876/tracking
is still being
refined. This
is not an
accurate
account.
507/new
tracking
system was in
development
during this
time frame
824
Number of Map, Data, Analysis, Report Completed Requests - Requests range from hard copy maps to interactive web maps, data request, data changes, crystal report requests.
1272/tracking
is still being
refined. This
is not an
accurate
account.
316/new
tracking
system was in
development
during this
time frame
328
Number of I&T workplan projects completed - Project 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
90%
9/10
90%*
7/8
2%
1/6
Multimedia Division
* Percentage skewed due to pandemic - more overall views due to daily press conference postings Proposed Budget
It is recommended that City Council approve a budget of $6,723,427 for the Innovation and Technology department. This represents a decrease of $833,718 (-11.0%) from the FY 2023-24 Adopted Budget.

The decrease is primarily due to no Special Projects being requested as well as the reduction of one IT Manager position resulting from an internal Chief Technology Officer recruitment.

The following table illustrates the Service-Level Reductions for the Department.

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Grouping
ServiceLevel
Reduction
Fiscal impact Service Level Impact Narrative
Fiscal
Accountability
Reduce
Budget for
I&T
$(779,187)
Reduced applications utilized by City staff; Cancelled ERP Implementation; Prolonged tech refresh cycles; Significantly reduced replacement parts and supplies, Reduced outside expert technical support. This reduction would reduce
efficiencies from some technology uses where the city has historically been comparatively advanced.

The table below shows unfunded needs for the Department.

Service Description Estimated
Costs Funding Status
Data Warehouse Central Repository for all enterprise
application data. $200,000 Unfunded
Learning Management
System (LMS) Expansion
Add training certification module to
HUB learning Management System $30,000 Unfunded
New World
Enhancements
Address the deficiencies identified
in the Needs Analysis of New
World ERP
$75,000 Unfunded
Enhanced Email threat
Detection/Response
Five year contract for enhanced
email threat detection and response $50,000 Unfunded
Senior Center Projection
System
Procurement and Installation of a
ceiling mount laser projector and a
projection screen
$45,000 Unfunded
Expansion of Foothill-De
Anza (HDA)
Expand FHDA Internship Program
to all students , irrespective of
income level
$160,000 Unfunded
Total $560,000
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Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures

30.9%

28.9%

21.5%

17.5%
Infrastructure
Applications
GIS
Video
I&T Administration
$5.41M
$6.38M
$7.56M
$6.72M
2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget FY 2024-25 Proposed Budget Innovation and Technology 298 852
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Intergovernmental Revenue $ 242,900 $ (30) $ 60,000 $ - Charges for Services $ 4,572,658 $ 3,928,046 $ 4,085,863 $ 5,113,586 Transfers In $ 146,308 $ - $ - $ -
Total Revenues $ 4,961,866 $ 3,928,016 $ 4,145,863 $ 5,113,586 Expenditures
Employee Compensation $ 2,030,751 $ 2,415,101 $ 2,953,284 $ 2,746,194 Employee Benefits $ 611,750 $ 1,061,734 $ 1,163,394 $ 1,125,453 Materials $ 1,705,614 $ 1,717,933 $ 1,812,505 $ 1,655,136 Contract Services $ 456,178 $ 446,993 $ 620,119 $ 714,647 Cost Allocation $ - $ - $ - $ 230,915
Special Projects $ 322,675 $ 516,888 $ 691,475 $ -
Other Financing Uses $ 285,961 $ 221,459 $ 285,961 $ 221,459 Contingencies $ - $ - $ 30,407 $ 29,623
Total Expenditures $ 5,412,929 $ 6,380,108 $ 7,557,145 $ 6,723,427 Fund Balance $ (198,074) $ 1,149,792 $ (477,502) $ (42,256) General Fund Costs $ 252,990 $ 3,601,883 $ 2,933,780 $ 1,567,585 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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.95 0.95 0 0
APPLICATIONS MANAGER 1.00 1.00 1.00 0
ASSET MANAGEMENT TECHNCIAN 1.00 0 0 0
BUSINESS SYSTEMS ANALYST 3.00 3.00 3.00 3.00
CHIEF TECHNOLOGY OFFICER 0.98 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 0 0
MANAGEMENT ANALYST 0 1.00 1.95 1.95

MULTIMEDIA COMMUNICATIONS
SPEC
0 1.50 3.00 3.00
NETWORK SPECIALIST 0 0 2.00 2.00
Total 11.93 13.43 14.93 13.93
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Innovation & Technology Administration
Budget Unit 610-30-300
Information Technology - I&T Administration - Innovation & Technology Administration Budget at a Glance
2025 Proposed Budget
Total Revenues $ 191,672
Total Expenditures $ 77,806
Fund Balance $ 113,866
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.3 FTE
Program Overview
The Innovation & Technology Department Administration Division is responsible for the strategic planning, governance, policy seLing, 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 $77,806 for the Innovation & Technology Administration program. This represents a decrease of $111,909 (-59.0%) from the FY 2023-24 Adopted Budget.

The decrease is primarily due to the reallocation of the Chief Technology Officer from this budget to beLer reflect actual time spent in this program.

The table below shows Service-Level Reductions for this program.

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Grouping Service-Level
Reduction
Fiscal
Impact Service-Level Impact Narrative
Fiscal
Accountability
Reduced Budget for
I&T $(2,850)
Reduced outside expert technical support. This
reduction would reduce efficiencies from some
technology uses where the city has historically been
comparatively advanced.

The table below shows unfunded needs for this program.

Service Description Estimated
Costs Funding status
Expansion of FoothillDe Anza (FHDA)
Internship Agreement
Expand FHDA Internship program to all
students, irrespective of income level $160,000 Unfunded 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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ - $ - $ - $ 191,672
Total Revenues $ - $ - $ - $ 191,672
Expenditures
Employee Compensation $ 114,941 $ 127,562 $ 128,598 $ 45,698 Employee Benefits $ 23,024 $ 46,310 $ 52,439 $ 20,160
Materials $ 3,787 $ 8,809 $ 6,071 $ 5,721
Contract Services $ 14,107 $ 7,933 $ 2,500 $ 2,000
Cost Allocation $ - $ - $ - $ 4,130
Special Projects $ 29,100 $ 41,000 $ - $ -
Contingencies $ - $ - $ 107 $ 97
Total Expenditures $ 184,959 $ 231,614 $ 189,715 $ 77,806 Fund Balance $ (184,959) $ (149,113) $ (189,715) $ 113,866 General Fund Costs $ - $ 82,500 $ - $ -
Staffing
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget ADMINISTRATIVE ASSISTANT 0.15 0.15 0 0
CHIEF TECHNOLOGY OFFICER 0.38 0.38 0.38 0.10
MANAGEMENT ANALYST 0 0 0.15 0.15
Total 0.53 0.53 0.53 0.25
As part of an expenditure reduction strategy, one IT Manager position will be promoted to Chief Technology Officer from an Internal recruitment. Staff time is being reallocated to beLer reflect actual time spent in this program.

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Video
Budget Unit 100-31-305
General Fund - Video - Video
Budget at a Glance
2025 Proposed Budget
Total Revenues $ 85,679
Total Expenditures $ 1,179,061
Fund Balance $ -
General Fund Costs $ 1,093,382
% Funded by General Fund 92.7%
Total Staffing 3.1 FTE
Program Overview
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 $1,179,061 for the Video program. This represents an increase of $253,091 (27.3%) from the FY 2023-24 Adopted Budget.

The increase in Contract Services is due to a transfer in from City Manager's Office for Multimedia split Budget.

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The table below shows Service-Level Reductions for this program.

Grouping Service-Level
Reduction
Fiscal
Impact Service-Level Impact Narrative
Fiscal
Accountability
Reduced
Budget for I&T $(33,522)
Prolonged tech refresh cycles; Significantly reduced
replacement parts and supplies, Reduced outside expert
technical support.

The table below shows unfunded needs for this program.

Service Description Estimated
Costs Funding Status
Senior Center
Projection System
Procurement and Installation of a ceiling mount laser
projector and a projection screen $45,000 Unfunded
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ - $ 11,506 $ - $ 85,679
Total Revenues $ - $ 11,506 $ - $ 85,679
Expenditures
Employee Compensation $ - $ 230,675 $ 591,230 $ 619,967 Employee Benefits $ - $ 65,460 $ 231,422 $ 268,574
Materials $ - $ 69,243 $ 38,579 $ 37,319
Contract Services $ - $ 70,852 $ 63,463 $ 197,746
Cost Allocation $ - $ - $ - $ 52,517
Special Projects $ - $ 42,433 $ - $ -
Contingencies $ - $ - $ 1,276 $ 2,938
Total Expenditures $ - $ 478,663 $ 925,970 $ 1,179,061
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ 467,157 $ 925,970 $ 1,093,382
Staffing
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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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
CHIEF TECHNOLOGY OFFICER 0 0 0 0.13

MULTIMEDIA COMMUNICATIONS
SPEC
0 1.50 3.00 3.00
Total 0 1.50 3.00 3.13
Staff time is being reallocated to better reflect actual time spent in this Program.

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Applications
Budget Unit 100-32-308
General Fund - Applications - Applications
Budget at a Glance
2025 Proposed Budget
Total Revenues $ 1,666,729
Total Expenditures $ 1,943,932
Fund Balance $ -
General Fund Costs $ 277,203
% Funded by General Fund 14.3%
Total Staffing 3.1 FTE
Program Overview
The Applications Division oversees citywide business critical enterprise soKware systems. The responsibilities include requirements gathering, design, development, procurement, project management, implementation, ongoing maintenance and support for all enterprise-wide business systems and programs. These soKware systems encompass Financial Enterprise Resource Planning (ERP), Land-use Management System, Recreation Management System, and their respective customer-facing portals. Additionally, the division manages the electronic content management (records retention) system and the city’s procurement management system.

Furthermore, the Applications Division oversees the development of the City's website, Intranet, and mobile apps. Its staff supports digital services of permiLing, licensing, registrations, inspections, and enforcement. The division is tasked with developing custom soKware applications, including bid management and residential parking permit solutions. Staff also manages application integrations to facilitate the flow of critical business data between enterprise platforms. Additionally, the division's staff generates crucial business analytics and reports, aiding city staff in gaining insights through data visualization. This assistance extends to department supervisors and managers, aiding them in decision-making and measuring key performance indices and goals.

Service Objectives
Implement business solutions that align with customer requirements and seamlessly integrate into the City's application framework.

Aid departments in developing streamlined and efficient business processes that are easily comprehensible and can be implemented in existing and new enterprise applications.

Collaborate closely with City staff to ensure that the City's enterprise application platforms are regularly updated and deliver value to all stakeholders.

Work in conjunction with various City departments to ensure that the City's enterprise soKware solutions meet functional requirements and align with the organization's long-term technology strategy.

Develop and maintain user-friendly online and mobile access to municipal information and services.

Facilitate the use of communication and technical resources by non-technical staff and customers.

Produce business data dashboards for city staff and external stakeholders.

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Proposed Budget
It is recommended that City Council approve a budget of $1,943,932 for the Applications program. This represents a decrease of $762,883 (-28.2%) from the FY 2023-24 Adopted Budget.

The decrease is primarily due to no special projects and reduced materials. Staff time is being reallocated to better reflect actual time spent in this Program.

The table below shows Service-Level Reductions for this program.

Grouping Service-Level
Reduction Fiscal Impact Service-Level Impact Narrative
Fiscal
Accountability
Reduced
Budget for I&T $(532,354)
Reduced applications utilized by City staff; Cancelled ERP Implementation; Reduced outside expert technical support.

This reduction would reduce efficiencies from some
technology uses where the city has historically been
comparatively advanced.

The table below shows unfunded needs for this program.

Service Description Estimated Costs Funding Status
New World
Enhancements
Address deficiencies identified in the
Needs Analysis $75,000 Unfunded
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Intergovernmental Revenue $ 242,900 $ (30) $ 60,000 $ - Charges for Services $ 1,613,055 $ 1,431,322 $ 1,539,005 $ 1,666,729 Transfers In $ 146,308 $ - $ - $ -
Total Revenues $ 2,002,263 $ 1,431,292 $ 1,599,005 $ 1,666,729 Expenditures
Employee Compensation $ 670,756 $ 718,099 $ 754,882 $ 666,439 Employee Benefits $ 232,154 $ 210,496 $ 265,644 $ 231,676 Materials $ 895,294 $ 909,110 $ 966,999 $ 880,026
Contract Services $ 129,333 $ 59,951 $ 126,151 $ 103,121 Cost Allocation $ - $ - $ - $ 50,381
Special Projects $ 135,638 $ 130,862 $ 579,475 $ -
Contingencies $ - $ - $ 13,664 $ 12,289
Total Expenditures $ 2,063,175 $ 2,028,518 $ 2,706,815 $ 1,943,932 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 60,912 $ 597,226 $ 1,107,810 $ 277,203 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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget ADMINISTRATIVE ASSISTANT 0.30 0.30 0 0
APPLICATIONS MANAGER 1.00 1.00 1.00 0
BUSINESS SYSTEMS ANALYST 2.00 2.00 2.00 2.00
CHIEF TECHNOLOGY OFFICER 0.20 0.20 0.20 0.75
MANAGEMENT ANALYST 0 0 0.30 0.30
Total 3.50 3.50 3.50 3.05
As part of an expenditure reduction strategy, one IT Manager position will be promoted to Chief Technology Officer from an Internal recruitment.

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Infrastructure
Budget Unit 610-34-310
Information Technology - Infrastructure - Infrastructure Budget at a Glance
2025 Proposed Budget
Total Revenues $ 1,745,011
Total Expenditures $ 2,079,379
Fund Balance $ (137,368)
General Fund Costs $ 197,000
% Funded by General Fund 9.5%
Total Staffing 4.3 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, cybersecurity 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 oKen 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.

Manage and support the City's server and network infrastructure and data centers, ensuring 99.9% availability of network resources.

Proactively protect the City from cyberthreats and conduct ongoing City-wide educational and securityrelated training programs.

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 $2,079,379 for the Infrastructure program. This represents a decrease of $165,738 (-7.4%) from the FY 2023-24 Adopted Budget.

The decrease in compensation is due to Chief Technology Officer time being reallocated to beLer reflect actual time spent in this program.

The table below shows Service-Level Reductions for this program.

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Grouping
ServiceLevel
Reduction
Fiscal
Impact Service-Level Impact Narratives
Fiscal
Accountability
Reduced
Budget for
I&T
$(143,841)
Reduced applications utilized by City staff; Prolonged tech refresh cycles; Significantly reduced replacement parts and supplies, Reduced outside expert technical support. This reduction would reduce efficiencies from some technology uses where the city has historically been comparatively advanced.

The table below shows unfunded needs for this program.

Service Description Estimated Cost Funding Status
Enhanced Email thread
Detection/Response
Five-Year contract for enhanced email
threat detection and response. $50,000 Unfunded
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ 1,882,195 $ 1,556,269 $ 1,591,722 $ 1,745,011 Total Revenues $ 1,882,195 $ 1,556,269 $ 1,591,722 $ 1,745,011 Expenditures
Employee Compensation $ 629,802 $ 657,342 $ 789,572 $ 716,658 Employee Benefits $ 192,068 $ 375,545 $ 326,584 $ 318,911 Materials $ 611,350 $ 632,757 $ 566,688 $ 506,467
Contract Services $ 195,656 $ 184,272 $ 265,905 $ 235,580 Cost Allocation $ - $ - $ - $ 71,028
Special Projects $ 78,960 $ 98,353 $ - $ -
Other Financing Uses $ 285,961 $ 221,459 $ 285,961 $ 221,459 Contingencies $ - $ - $ 10,407 $ 9,276
Total Expenditures $ 1,993,797 $ 2,169,728 $ 2,245,117 $ 2,079,379 Fund Balance $ 80,476 $ 1,841,542 $ 246,605 $ (137,368) General Fund Costs $ 192,078 $ 2,455,000 $ 900,000 $ 197,000 Staffing
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget ADMINISTRATIVE ASSISTANT 0.30 0.30 0 0
BUSINESS SYSTEMS ANALYST 1.00 1.00 1.00 1.00
CHIEF TECHNOLOGY OFFICER 0.20 0.20 0.20 0
INFRASTRUCTURE MANAGER 1.00 1.00 1.00 1.00
I.T. ASSISTANT 2.00 2.00 0 0
MANAGEMENT ANALYST 0 0 0.30 0.30
NETWORK SPECIALIST 0 0 2.00 2.00
Total 4.50 4.50 4.50 4.30
Staff is being reallocated to better reflect actual time spent in this program.

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GIS
Budget Unit 610-35-986
Information Technology - GIS - GIS
Budget at a Glance
2025 Proposed Budget
Total Revenues $ 1,424,495
Total Expenditures $ 1,443,249
Fund Balance $ (18,754)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 3.2 FTE
Program Overview
The Geographic Information Systems (GIS) program serves as the central hub for capturing, managing, analyzing, and displaying all geographically referenced information pertinent to the City of Cupertino.

Alongside the administration of Cupertino's asset management system, public service request system, document management system, and the city SharePoint intranet Hub, the GIS Program oversees essential platforms such as Teams, Planner, and enterprise digital workflows. Through maps, reports, dashboards, and charts, we facilitate the exploration, understanding, and interpretation of our city's data. Our aim is to empower staff, citizens, businesses, and development communities by providing easily comprehensible visualizations that facilitate problem-solving and decision-making processes, all readily shareable and accessible.

Service Objectives
Efficient Data Management: Ensuring the accurate capture, storage, and organization of geographically referenced information related to Cupertino's assets, public service requests, documents, and other relevant data sets.

Data Analysis and Visualization: Utilizing GIS tools and technologies to analyze spatial data, identify paLerns, trends, and relationships, and present findings through maps, reports, dashboards, and charts to aid decision-making processes.

User Support and Training: Providing assistance, guidance, and training to staff and citizens in utilizing GIS tools and platforms effectively for data analysis, problem-solving, and decision-making purposes.

Platform Administration: Managing and maintaining GIS platforms, as well as other associated systems such as asset management, public service requests, document management, intranet hub, collaboration tools, and digital workflows to ensure optimal functionality and accessibility.

Collaboration and Integration: Facilitating collaboration and integration of GIS data and tools with other city departments, agencies, and stakeholders to enhance coordination, information sharing, and efficiency in addressing various challenges and initiatives.

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Continuous Improvement: Continuously evaluating and enhancing GIS services, platforms, and processes to adapt to evolving needs, technological advancements, and best practices, thereby optimizing the overall effectiveness and value delivered to stakeholders.

Proposed Budget
It is recommended that City Council approve a budget of $1,443,249 for the GIS program. This represents a decrease of $46,279 (-3.1%) from the FY 2023-24 Adopted Budget.

The decrease is due to a slight reduction in materials, offset by increases in contract services and Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The table below shows Service-Level Reductions for this program.

Grouping Service-Level
Reduction
Fiscal
impact Service-Level Impact Narrative
Fiscal
Accountability
Reduce Budget
for I&T $(66,980)
Reduced applications utilized by City staff; Reduced outside expert technical support. This reduction would reduce
efficiencies from some technology uses where the city has historically been comparatively advanced.

The table below shows unfunded needs for this program.

Service Description Estimated
Cost Funding Status
Data
Warehouse Central Repository for all enterprise application data. $200,000 Unfunded Learning
Management
System
(LMS)
Training
Certification
Add training certification module to HUB Learning
Management System $30,000 Unfunded
Total $230,000
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ 1,077,408 $ 928,949 $ 955,136 $ 1,424,495 Total Revenues $ 1,077,408 $ 928,949 $ 955,136 $ 1,424,495 Expenditures
Employee Compensation $ 615,252 $ 681,423 $ 689,002 $ 697,432 Employee Benefits $ 164,504 $ 363,923 $ 287,305 $ 286,132 Materials $ 195,183 $ 98,014 $ 234,168 $ 225,603
Contract Services $ 117,082 $ 123,985 $ 162,100 $ 176,200 Cost Allocation $ - $ - $ - $ 52,859
Special Projects $ 78,977 $ 204,240 $ 112,000 $ -
Contingencies $ - $ - $ 4,953 $ 5,023
Total Expenditures $ 1,170,998 $ 1,471,585 $ 1,489,528 $ 1,443,249 Fund Balance $ (93,591) $ (542,637) $ (534,392) $ (18,754) 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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.20 0.20 0 0

ASSET MANAGEMENT

TECHNCIAN

1.00 0 0 0
CHIEF TECHNOLOGY OFFICER 0.20 0.20 0.20 0
GIS ANALYST 1.00 1.00 1.00 1.00
GIS MANAGER 1.00 1.00 1.00 1.00
MANAGEMENT ANALYST 0 1.00 1.20 1.20
Total 3.40 3.40 3.40 3.20
Staff time is being reallocated to better reflect actual time spent in this program.

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Administrative Services
FY 2024-25 Proposed Budget Administrative Services 317
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Department Overview
Budget Units
Budget Unit Program 2025 Proposed Budget
Administrative Services $ 386,090
100-40-400 Administrative Services Administration $ 386,090 Finance $ 3,238,538
100-41-405 Accounting $ 1,915,780
100-41-406 Business Licenses $ 325,067
100-41-425 Purchasing $ 424,809
100-41-426 Budget $ 572,882
Human Resources $ 6,931,002
100-44-412 Human Resources $ 1,467,527
642-44-414 Retiree Benefits $ 1,609,045
100-44-417 Insurance Administration $ 2,444,954
620-44-418 Workers Compensation Insurance $ 571,410
641-44-419 Long Term Disability $ 110,329
641-44-420 Compensated Absences $ 727,737
Total $ 10,555,630
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Budget at a Glance
2025 Proposed Budget
Total Revenues $ 5,572,466
Total Expenditures $ 10,555,630
Fund Balance $ (366,139)
General Fund Costs $ 4,617,025
% Funded by General Fund 43.7%
Total Staffing 17.9 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 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Ongoing
Target
General Fund committed, assigned, and unassigned
fund balance as a % of budgeted appropriations 86% 122% 97% 35% Credit Rating AA+ AA+ AA+ AA+
Actual revenue vs. budget (% below budget) 24% 17% 28% 10% Actual expenditures (% below budget) 9% 14% 24% 5%
Funding allocated to high priority services (Public
Works, Community Development, Law Enforcement) 52% 58% 72% 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.

Performance Measure
FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Ongoing
Target
# of Worker’s Compensation Cases 11 4 1 0
Total recordable Injury Rate YTD 4.3% 1.4% 0.3% 0%
% absenteeism (% of total annual work hours) 2% 3% 3% 2% % turnover rate 9% 9% 3% 1%
% Employee participation in wellness activities 48% 38% 39% 75% Average # of applications received per recruitment 49 45 49 50 Recruitment timeline - # days from hiring request to offer letter 88 105 53 60
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Workload Indicators
Finance Division
Workload Indicator FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
# of vendor checks processed 4,993 5,130 2,199
# of payroll checks processed 8,119 9,176 4,758
# of business license applications 884 969 515
# of business license renewals 1,521 2,176 1,005
# of journal entries posted 3,635 3,695 1,743
# of purchase orders approved 563 543 307
# of receipts processed 9,353 11,275 4,885
Human Resources Division
Workload Indicator FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
# of regular recruitments 33 29 11
# of regular new hires 38 31 9
# of temporary new hires 77 70 14
# of personnel payroll changes 787 773 331
# of full-time employee exits processed 24 22 12
# of mandated training classes offered* 20 19 21
# of employees participating in the wellness program 104 161 99 * 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 $10,555,630 for the Administrative Services department. This represents an increase of $531,401 (5.3%) from the FY 2023-24 Adopted Budget.

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The increase is mainly due to increases in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The following table illustrates the Service-Level Reductions for the department.

Grouping Service-Level
Reduction Fiscal Impact Service-Level Impact Narrative
Fiscal Accountability
Reduce
Unemployment
Insurance
$(64,148) New costs are reflective of postCOVID estimates Operations and
Maintenance
Reduce Budget for
Internal Audit $(40,000)
Reduction in the number of internal
audit projects. Audits would occur on
a less frequent basis.

Operations and
Maintenance
Shift credit card fees to
customers
$(39,000)
Customers would pay a credit card
transaction fee for any payments
made using a credit card. Currently,
the City does not charge credit card
fees to customers. Many jurisdictions
charge customers a credit card
transaction fee for any payments
made using a credit card.

Total $(139,148)
The table below shows unfunded needs for the department.

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Project Description Estimated
Cost
One-time
or
Ongoing
Funding
Status
Training Investment
California Association of Public
Procurement Officials (CAPPO) 2025
Conference - in Person
$1,500 One-time Unfunded
Training Investment
Successful Scope of Work
Development (5 @ $195/ea) National
Institute of Governmental Purchasing,
Inc (NIGP)
$1,000 One-time Unfunded
Analytic Support
Student Intern for support with
Presentation Development, Handout
Materials, Policy comparison
$5,000 One-time Unfunded
Professional Purchasing Support
Professional Consultant to Research
and develop bid and quote
documents
$15,000 One-time Unfunded
Professional Purchasing Support
Consultant to draft training
presentations for citywide staff
including contract development,
contract negotiations, Request For
Proposal use
$20,000 Ongoing Unfunded
Professional Purchasing Support
Consultant to develop template for
documenting and achieving the
Achievement of Excellence in
Procurement (AEP) Award
$15,000 One-time Unfunded
Citywide Analyst Classification
Study
Consultant study of citywide analyst
classifications $10,000 One-time Unfunded
Succession Planning
Hire consultant to assist with
developing a succession plan for the
city
$20,000 One-time Unfunded
Human Resources Support
Part-time staff support for
recommended centralized citywide
training model
$52,360 Ongoing Unfunded
Total $139,860
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Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures

65.7%

30.7%
Human Resources
Finance
Administrative Services
$7.86M
$8.54M
$10.0M
$10.6M
2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget FY 2024-25 Proposed Budget Administrative Services 325
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ 4,484,822 $ 3,974,879 $ 4,159,392 $ 5,103,482 Miscellaneous Revenue $ 44,002 $ 43,832 $ - $ -
Other Financing Sources $ 356,830 $ 436,462 $ - $ 468,984 Transfers In $ 332,112 $ - $ - $ -
Total Revenues $ 5,217,766 $ 4,455,173 $ 4,159,392 $ 5,572,466 Expenditures
Employee Compensation $ 2,240,233 $ 2,445,716 $ 2,808,263 $ 2,766,469 Employee Benefits $ 2,401,776 $ 2,376,202 $ 2,735,256 $ 2,889,460 Materials $ 136,581 $ 127,195 $ 108,808 $ 111,160
Contract Services $ 2,740,443 $ 3,236,527 $ 4,020,746 $ 4,232,614 Cost Allocation $ 341,693 $ 349,530 $ 308,962 $ 511,081 Special Projects $ - $ 4,200 $ - $ -
Contingencies $ - $ - $ 42,194 $ 44,846
Total Expenditures $ 7,860,726 $ 8,539,370 $ 10,024,229 $ 10,555,630 Fund Balance $ (735,233) $ (1,244,606) $ (2,450,237) $ (366,139) General Fund Costs $ 1,907,727 $ 2,839,589 $ 3,414,600 $ 4,617,025 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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
ACCOUNTANT II 2.00 2.00 2.00 2.00
ACCOUNT CLERK II 3.00 3.00 3.00 3.00
ACCOUNTING TECHNICIAN 1.00 1.00 1.00 1.00
ADMINISTRATIVE ASSISTANT 0.95 0.95 0 0
BUDGET MANAGER 0 1.00 1.00 1.00
DIRECTOR OF ADMIN SERVICES 1.00 1.00 1.00 1.00
FINANCE MANAGER 0.95 0.95 0.95 0.95
HUMAN RESOURCES ANALYST II 2.00 2.00 2.00 2.00
HUMAN RESOURCES MANAGER 1.00 1.00 1.00 1.00
HUMAN RESOURCES TECH 2.00 2.00 2.00 2.00
MANAGEMENT ANALYST 0 0 0.95 0.95
PURCHASING MANAGER 0 1.00 1.00 1.00
SENIOR ACCOUNTANT 1.00 1.00 1.00 1.00

SENIOR MANAGEMENT

ANALYST

2.00 2.00 1.00 1.00
Total 16.90 18.90 17.90 17.90
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Administrative Services Administration
Budget Unit 100-40-400
General Fund - Administrative Services - Administrative Services Administration Budget at a Glance
2025 Proposed Budget
Total Revenues $ 35,714
Total Expenditures $ 386,090
Fund Balance $ -
General Fund Costs $ 350,376
% Funded by General Fund 90.7%
Total Staffing 1.4 FTE
Program Overview
The Administrative Services Administration program oversees and coordinates Human Resources/Risk Management, Finance, Purchasing, Budget, and Treasury. In Fall 2022, City Council adopted the City's Fraud, Waste, and Abuse (FWA) Program which is administered by the City's Internal Auditor. The Internal Auditor monitors the hotline, triages complaints received, recommends action to the appropriate City personnel, and conducts investigations, as appropriate. Costs associated with supporting the FWA hotline are expensed in this program. Additionally, staff support from this program is provided to the Audit Committee.

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 contract for the City's Fraud, Waste, Abuse Program.

Provide staff support to Audit Committee.

Proposed Budget
It is recommended that City Council approve a budget of $386,090 for the Administrative Services Administration program. This represents an increase of $18,397 (5.0%) from the FY 2023-24 Adopted Budget.

The increase is primarily due to increases in Cost Allocation Plan (CAP) expenses. Matrix Consulting Group updated the CAP based on a study performed in 2023. This is offset by a reduction in overall material expenses.

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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ 183,169 $ 156,003 $ 154,333 $ 35,714 Miscellaneous Revenue $ 36,300 $ 11 $ - $ -
Total Revenues $ 219,469 $ 156,014 $ 154,333 $ 35,714
Expenditures
Employee Compensation $ 562,571 $ 540,819 $ 240,749 $ 239,790 Employee Benefits $ 242,833 $ 220,816 $ 103,522 $ 105,249 Materials $ 47,865 $ 17,917 $ 17,628 $ 12,199
Contract Services $ - $ - $ 5,505 $ 5,505
Cost Allocation $ - $ - $ - $ 23,126
Contingencies $ - $ - $ 289 $ 221
Total Expenditures $ 853,269 $ 779,552 $ 367,693 $ 386,090 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 633,800 $ 623,538 $ 213,360 $ 350,376 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 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.95 0.95 0 0
DIRECTOR OF ADMIN SERVICES 0.80 0.80 0.20 0.20
MANAGEMENT ANALYST 0 0 0.20 0.20

SENIOR MANAGEMENT

ANALYST

2.00 2.00 1.00 1.00
Total 3.75 3.75 1.40 1.40
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
2025 Proposed Budget
Total Revenues $ 1,626,339
Total Expenditures $ 1,915,780
Fund Balance $ -
General Fund Costs $ 289,441
% Funded by General Fund 15.1%
Total Staffing 7.1 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 three investment policies, performs all financial analyses, conducts research, and prepares reports on all fiscal maLers 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 $1,915,780 for the Accounting program. This represents an increase of $97,531 (5.4%) from the FY 2023-24 Adopted Budget.

The increase is due to increases in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The table below shows the service-level reductions for this program.

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Grouping Service-Level Reduction Fiscal
Impact
Service-Level Impact Narrative
Operations and
Maintenance
Reduce Budget for
Internal Audit
$(40,000) Reduction in the number of internal audit
projects. Audits would occur on a less frequent
basis.

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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ 2,179,273 $ 2,112,498 $ 2,120,939 $ 1,626,339 Miscellaneous Revenue $ 7,702 $ 39,662 $ - $ -
Transfers In $ 150,000 $ - $ - $ -
Total Revenues $ 2,336,975 $ 2,152,160 $ 2,120,939 $ 1,626,339 Expenditures
Employee Compensation $ 813,499 $ 803,440 $ 1,017,729 $ 960,073 Employee Benefits $ 371,524 $ 308,804 $ 470,843 $ 471,799 Materials $ 13,248 $ 14,576 $ 14,987 $ 16,323
Contract Services $ 337,405 $ 348,778 $ 310,620 $ 346,595 Cost Allocation $ - $ - $ - $ 116,454
Special Projects $ - $ 4,200 $ - $ -
Contingencies $ - $ - $ 4,070 $ 4,536
Total Expenditures $ 1,535,676 $ 1,479,798 $ 1,818,249 $ 1,915,780 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (801,299) $ (672,362) $ (302,690) $ 289,441 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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget ACCOUNTANT II 1.90 1.90 1.90 1.90
ACCOUNT CLERK II 2.00 2.00 2.00 2.00
ACCOUNTING TECHNICIAN 1.00 1.00 1.00 1.00
DIRECTOR OF ADMIN SERVICES 0 0 0.20 0.20
FINANCE MANAGER 0.95 0.95 0.95 0.95
SENIOR ACCOUNTANT 1.00 1.00 1.00 1.00
Total 6.85 6.85 7.05 7.05
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Administrative Services 332
886
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Business Licenses
Budget Unit 100-41-406
General Fund - Finance - Business Licenses
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 325,067
Fund Balance $ -
General Fund Costs $ 325,067
% 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 $325,067 for the Business Licenses program. This represents a decrease of $98,463 (-23.2%) from the FY 2023-24 Adopted Budget.

The decrease is due to a shiK of credit card fees to customers. The decrease is due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The table below shows Service-Level Reductions for this program.

FY 2024-25 Proposed Budget Administrative Services 333
887
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Grouping Service-Level
Reduction Fiscal Impact Service-Level Impact Narrative
Operations and
Maintenance
Shift credit card fees to
customers
$(39,000)
Customers would pay a credit card
transaction fee for any payments
made using a credit card. Currently,
the City does not charge credit card
fees to customers. Many jurisdictions
charge customers a credit card
transaction fee for any payments
made using a credit card.

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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 103,915 $ 114,293 $ 110,981 $ 109,333 Employee Benefits $ 57,777 $ 57,200 $ 64,549 $ 58,740
Materials $ 173 $ 204 $ - $ -
Contract Services $ 38,832 $ 18,753 $ 39,000 $ -
Cost Allocation $ 239,885 $ 240,930 $ 208,512 $ 156,994 Contingencies $ - $ - $ 488 $ -
Total Expenditures $ 440,582 $ 431,380 $ 423,530 $ 325,067 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 440,581 $ 431,379 $ 423,530 $ 325,067 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 2024-25 Proposed Budget Administrative Services 334
888
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Position Title 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget ACCOUNTANT II 0.10 0.10 0.10 0.10
ACCOUNT CLERK II 1.00 1.00 1.00 1.00
Total 1.10 1.10 1.10 1.10
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Administrative Services 335
889
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Purchasing
Budget Unit 100-41-425
General Fund - Finance - Purchasing
Budget at a Glance
2025 Proposed Budget
Total Revenues $ 321,408
Total Expenditures $ 424,809
Fund Balance $ -
General Fund Costs $ 103,401
% Funded by General Fund 24.3%
Total Staffing 1.2 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 providing review, guidance, and standardization for soliciting formal and informal competitive bids and proposals, obtaining quotes, and participating in cooperative procurements lead by 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 $424,809 for the Purchasing program. This represents an increase of $55,332 (15.0%) from the FY 2023-24 Adopted Budget.

The increase is due to increases in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The following table shows unfunded needs for the program.

FY 2024-25 Proposed Budget Administrative Services 336
890
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Service Description Estimated
Cost
Funding
Status
Training
Investment
California Association of Public Procurement Officials
(CAPPO) 2025 Conference - in Person
$1,500 Unfunded
Training
Investment
Successful Scope of Work Development (5 @ $195/ea)
National Institute of Governmental Purchasing, Inc
(NIGP)
$1,000 Unfunded
Analytic Support Student Intern for support with Presentation Development, Handout Materials, Policy comparison
$5,000 Unfunded
Professional
Purchasing
Support
Professional Consultant to Research and develop bid
and quote documents
$15,000 Unfunded
Professional
Purchasing
Support
Consultant to draft training presentations for citywide staff including contract development, contract
negotiations, RFP use
$20,000 Unfunded
Professional
Purchasing
Support
Consultant to develop template for documenting and
achieving the Achievement of Excellence in
Procurement (AEP) Award
$15,000 Unfunded
Total $57,500
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 2024-25 Proposed Budget Administrative Services 337
891
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ - $ - $ - $ 321,408
Total Revenues $ - $ - $ - $ 321,408
Expenditures
Employee Compensation $ - $ 35,897 $ 255,899 $ 272,068
Employee Benefits $ - $ (3,149) $ 111,804 $ 131,492
Materials $ - $ 1,546 $ 1,752 $ 1,409
Contract Services $ - $ 200 $ - $ -
Cost Allocation $ - $ - $ - $ 19,822
Contingencies $ - $ - $ 22 $ 18
Total Expenditures $ - $ 34,494 $ 369,477 $ 424,809
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ 34,494 $ 369,477 $ 103,401
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget DIRECTOR OF ADMIN SERVICES 0 0 0.20 0.20
PURCHASING MANAGER 0 1.00 1.00 1.00
Total 0 1.00 1.20 1.20
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Administrative Services 338
892
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Budget
Budget Unit 100-41-426
General Fund - Finance - Budget
Budget at a Glance
2025 Proposed Budget
Total Revenues $ 507,316
Total Expenditures $ 572,882
Fund Balance $ -
General Fund Costs $ 65,566
% Funded by General Fund 11.4%
Total Staffing 2.0 FTE
Program Overview
The Budget program manages the budget-to-actual activities for both the operating budget and capital budgets. The program also develops, delivers, and updates the annual operating budget, twenty-year long-term financial forecast, and 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 $572,882 for the Budget program. This represents an increase of $50,742 (9.7%) from the FY 2023-24 Adopted Budget.

The increase is due to increases in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

Revenues and Expenditures
FY 2024-25 Proposed Budget Administrative Services 339
893
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ - $ - $ - $ 507,316
Total Revenues $ - $ - $ - $ 507,316
Expenditures
Employee Compensation $ - $ 130,237 $ 352,271 $ 366,895 Employee Benefits $ - $ 26,849 $ 152,448 $ 155,599
Materials $ - $ 7,168 $ 14,249 $ 17,953
Contract Services $ - $ 4,280 $ 2,957 $ -
Cost Allocation $ - $ - $ - $ 32,211
Contingencies $ - $ - $ 215 $ 224
Total Expenditures $ - $ 168,534 $ 522,140 $ 572,882
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ 168,534 $ 522,140 $ 65,566
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget BUDGET MANAGER 0 1.00 1.00 1.00
DIRECTOR OF ADMIN SERVICES 0 0 0.20 0.20
MANAGEMENT ANALYST 0 0 0.75 0.75
Total 0 1.00 1.95 1.95
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Administrative Services 340
894
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Human Resources
Budget Unit 100-44-412
General Fund - Human Resources - Human Resources
Budget at a Glance
2025 Proposed Budget
Total Revenues $ 1,000,511
Total Expenditures $ 1,467,527
Fund Balance $ -
General Fund Costs $ 467,016
% Funded by General Fund 31.8%
Total Staffing 4.9 FTE
Program Overview
The Human Resources Division is responsible for the administration of human resources programs, employee benefits, and labor relation programs including personnel selection, classification, compensation, equal employment opportunity, labor negotiations, employee relations, employee training and development, benefits, HRIS and retirement. The Human Resources Administration Division budget covers contracts and materials associated with supporting these internal services functions.

In addition, Human Resources administers risk management, safety and wellness programs, a self-insured workers’ compensation program, and retiree medical insurance. Funding for these internal services is reflected in subsequent Human Resources program budgets.

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 $1,467,527 for the Human Resources program. This represents an increase of $72,061 (5.2%) from the FY 2023-24 Adopted Budget.

FY 2024-25 Proposed Budget Administrative Services 341
895
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The overall increase is due to increases in Cost Allocation Plan (CAP) expenses. Matrix Consulting Group updated the CAP based on a study performed in 2023. This increase is offset by decreases in executive recruitment, tuition reimbursement and employee assistance program premium expenses.

The table below shows unfunded needs for this program.

Service Description Estimated Cost Funding Status
Succession Planning Hire consultant to assist with
developing a succession plan for the city $20,000 Unfunded Citywide Analyst
Classification Study
Consultant study of citywide analyst
classifications $15,000 Unfunded
Total $35,000
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ 2,122,380 $ 1,706,378 $ 1,884,120 $ 1,000,511 Miscellaneous Revenue $ - $ 2,470 $ - $ -
Transfers In $ 182,112 $ - $ - $ -
Total Revenues $ 2,304,492 $ 1,708,848 $ 1,884,120 $ 1,000,511 Expenditures
Employee Compensation $ 709,499 $ 767,855 $ 777,118 $ 765,589 Employee Benefits $ 370,729 $ 367,391 $ 336,685 $ 351,256 Materials $ 75,295 $ 85,784 $ 60,192 $ 63,276
Contract Services $ 360,707 $ 300,638 $ 217,994 $ 204,445 Cost Allocation $ - $ - $ - $ 80,114
Contingencies $ - $ - $ 3,477 $ 2,847
Total Expenditures $ 1,516,230 $ 1,521,668 $ 1,395,466 $ 1,467,527 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (788,262) $ (187,181) $ (488,654) $ 467,016 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 2024-25 Proposed Budget Administrative Services 342
896
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Position Title 2022
Actual
2023 Actual 2024 Adopted Budget 2025 Proposed Budget
DIRECTOR OF ADMIN SERVICES 0.20 0.20 0.20 0.20

HUMAN RESOURCES ANALYST
II

1.70 1.70 1.70 1.70
HUMAN RESOURCES MANAGER 1.00 1.00 1.00 1.00
HUMAN RESOURCES TECH 1.95 1.95 1.95 1.95
Total 4.85 4.85 4.85 4.85
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Administrative Services 343
897
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Retiree Benefits
Budget Unit 642-44-414
Retiree Medical - Human Resources - Retiree Benefits
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 1,609,045
Fund Balance $ (16,647)
General Fund Costs $ 1,592,398
% Funded by General Fund 99.0%
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 $1,609,045 for the Retiree Benefits program. This represents an increase of $122,057 (8.2%) from the FY 2023-24 Adopted Budget.

This increase is based on the City's most current OPEB actuarial report.

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 2024-25 Proposed Budget Administrative Services 344
898
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Benefits $ 1,342,158 $ 1,380,875 $ 1,473,000 $ 1,592,398 Cost Allocation $ 14,881 $ 14,782 $ 13,988 $ 16,647
Total Expenditures $ 1,357,039 $ 1,395,657 $ 1,486,988 $ 1,609,045 Fund Balance $ (135,835) $ (1,395,657) $ (1,486,988) $ (16,647) General Fund Costs $ 1,221,204 $ - $ - $ 1,592,398
Staffing
There is no staffing associated with this program.

FY 2024-25 Proposed Budget Administrative Services 345
899
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Insurance Administration
Budget Unit 100-44-417
General Fund - Human Resources - Insurance Administration Budget at a Glance
2025 Proposed Budget
Total Revenues $ 1,612,194
Total Expenditures $ 2,444,954
Fund Balance $ -
General Fund Costs $ 832,760
% Funded by General Fund 34.1%
Total Staffing 0.2 FTE
Program Overview
The Insurance Administration General Liability and Property programs and Employment Practices Law insurance.

Service Objectives
Provide the City with General Liability and Property Insurance Provide the City with Employment Practices Law Insurance Proposed Budget
It is recommended that City Council approve a budget of $2,444,954 for the Insurance Administration program. This represents an increase of $147,517 (6.4%) from the FY 2023-24 Adopted Budget.

This increase is due to an increase in annual premiums for General Liability and Property insurance offset by a decrease in estimated litigated claims expenses.

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 2024-25 Proposed Budget Administrative Services 346
900
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ - $ - $ - $ 1,612,194
Miscellaneous Revenue $ - $ 1,689 $ - $ -
Total Revenues $ - $ 1,689 $ - $ 1,612,194
Expenditures
Employee Compensation $ 19,680 $ 21,635 $ 21,793 $ 21,469 Employee Benefits $ 8,689 $ 7,960 $ 9,403 $ 9,761
Contract Services $ 1,101,955 $ 1,476,879 $ 2,188,193 $ 2,381,478 Cost Allocation $ 49,808 $ 54,402 $ 50,696 $ 2,478
Contingencies $ - $ - $ 27,352 $ 29,768
Total Expenditures $ 1,180,132 $ 1,560,876 $ 2,297,437 $ 2,444,954 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 1,180,133 $ 1,559,187 $ 2,297,437 $ 832,760 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 2022
Actual
2023 Actual 2024 Adopted Budget 2025 Proposed Budget

HUMAN RESOURCES ANALYST
II

0.10 0.10 0.10 0.10
HUMAN RESOURCES TECH 0.05 0.05 0.05 0.05
Total 0.15 0.15 0.15 0.15
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Administrative Services 347
901
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Workers Compensation Insurance
Budget Unit 620-44-418
Workers' Compensation - Human Resources - Workers Compensation Insurance Budget at a Glance
2025 Proposed Budget
Total Revenues $ 468,984
Total Expenditures $ 571,410
Fund Balance $ (102,426)
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. Additionally, this program is responsible for the administration of the City's self-insured unemployment insurance benefit account.

Service Objectives
Manage employee industrial injury and/or illness and provide proactive risk management programs to ensure employee safety in the workplace.

Monitor costs associated with claims.

Analyze and implement proactive measures to curtail costs.

Implement a return to work policy.

Manage and administer the City's unemployment insurance benefit account with the State of CA.

Proposed Budget
It is recommended that City Council approve a budget of $571,410 for the Workers Compensation Insurance program. This represents a decrease of $11,368 (-2.0%) from the FY 2023-24 Adopted Budget.

This budget is relatively unchanged from the prior fiscal year.

The table below shows the service-level reductions for this program.

Grouping Service-Level Reduction Fiscal
Impact Service-Level Impact Narrative
Fiscal Accountability Reduce Unemployment
Insurance $(64,148) New costs are reflective of postCOVID estimates Revenues and Expenditures
FY 2024-25 Proposed Budget Administrative Services 348
902
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Other Financing Sources $ 356,830 $ 436,462 $ - $ 468,984 Total Revenues $ 356,830 $ 436,462 $ - $ 468,984
Expenditures
Employee Compensation $ 31,069 $ 31,540 $ 31,723 $ 31,252 Employee Benefits $ 8,066 $ 9,456 $ 13,002 $ 13,166
Contract Services $ 476,344 $ 470,630 $ 502,477 $ 470,591 Cost Allocation $ 28,167 $ 28,369 $ 29,295 $ 50,519
Contingencies $ - $ - $ 6,281 $ 5,882
Total Expenditures $ 543,646 $ 539,995 $ 582,778 $ 571,410 Fund Balance $ (186,816) $ (103,533) $ (582,778) $ (102,426) 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 2022
Actual
2023 Actual 2024 Adopted Budget 2025 Proposed Budget

HUMAN RESOURCES ANALYST
II

0.20 0.20 0.20 0.20
Total 0.20 0.20 0.20 0.20
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Administrative Services 349
903
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Long Term Disability
Budget Unit 641-44-419
Compensated Absence/LTD - Human Resources - Long Term Disability Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 110,329
Fund Balance $ (110,329)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
This program oversees claims and premiums associated with Long Term Disability.

Service Objectives
Obtain and manage insurance policies
Negotiate rates
Coordinate claims
Proposed Budget
It is recommended that City Council approve a budget of $110,329 for the Long Term Disability program. This represents an increase of $7,948 (7.8%) from the FY 2023-24 Adopted Budget.

This increase is due to a monthly premium expense associated with providing a contracted benefit for full time employees.

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 2024-25 Proposed Budget Administrative Services 350
904
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ 92,612 $ 97,976 $ 100,000 $ 108,000 Cost Allocation $ 3,362 $ 2,767 $ 2,381 $ 979
Contingencies $ - $ - $ - $ 1,350
Total Expenditures $ 95,974 $ 100,743 $ 102,381 $ 110,329 Fund Balance $ (95,974) $ (100,743) $ (102,381) $ (110,329) General Fund Costs $ - $ - $ - $ -
Staffing
There is no staffing associated with this program.

FY 2024-25 Proposed Budget Administrative Services 351
905
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Compensated Absences
Budget Unit 641-44-420
Compensated Absence/LTD - Human Resources - Compensated Absences Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 727,737
Fund Balance $ (136,737)
General Fund Costs $ 591,000
% Funded by General Fund 81.2%
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 $727,737 for the Compensated Absences program.

This represents an increase of $69,647 (10.6%) from the FY 2023-24 Adopted Budget.

This increase is reflective of the estimated number of employees eligible to cash out leave balances due to constructive receipts, retirements, resignations, and other types of separation from the City. Under Internal Revenue Service ("IRS") Regulations, the IRS considers income to be received for tax purposes if the individual actually receives it or has an option to receive it during the tax year. This is known as the constructive receipt doctrine.

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 2024-25 Proposed Budget Administrative Services 352
906
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ 332,588 $ 518,393 $ 654,000 $ 716,000 Cost Allocation $ 5,590 $ 8,280 $ 4,090 $ 11,737
Total Expenditures $ 338,178 $ 526,673 $ 658,090 $ 727,737 Fund Balance $ (316,608) $ 355,327 $ (278,090) $ (136,737) General Fund Costs $ 21,570 $ 882,000 $ 380,000 $ 591,000 Staffing
There is no staffing associated with this program.

FY 2024-25 Proposed Budget Administrative Services 353
907
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FY 2024-25 Proposed Budget Administrative Services 354
908
CC 05-21-2024
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Parks and Recreation
FY 2024-25 Proposed Budget Parks and Recreation 355
909
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FY 2024-25 Proposed Budget Parks and Recreation 356
910
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Department Overview
Budget Units
Budget Unit Program 2025 Proposed Budget
Parks and Recreation $ 1,584,020
100-60-601 Recreation Administration $ 1,423,593
100-60-636 Library Services $ 160,427
Business and Community Services $ 1,141,230
100-61-602 Administration $ 538,711
100-61-605 Cultural Events $ 323,917
100-61-630 Facilities $ 278,602
Recreation and Education $ 3,448,389
100-62-608 Administration $ 798,851
580-62-613 Youth Teen Recreation $ 1,592,949
100-62-623 Senior Center $ 686,501
100-62-639 Teen Programs $ 263,802
100-62-640 Neighborhood Events $ 106,286
Sports, Safety and Outdoor Recreation $ 4,733,823
100-63-612 Park Facilities $ 1,541,846
100-63-615 Administration $ -
560-63-616 Blackberry Farm Golf Course $ 566,423
580-63-620 Outdoor Recreation $ 965,666
570-63-621 Sports Center Operations $ 1,659,888
Total $ 10,907,462
FY 2024-25 Proposed Budget Parks and Recreation 357
911
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Budget at a Glance
2025 Proposed Budget
Total Revenues $ 4,842,690
Total Expenditures $ 10,907,462
Fund Balance $ (610,426)
General Fund Costs $ 5,454,346
% Funded by General Fund 50.0%
Total Staffing 27.6 FTE
Organization
Rachelle Sander, Director of Parks and Recreation
FY 2024-25 Proposed Budget Parks and Recreation 358
912
CC 05-21-2024
912 of 1220
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 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Ongoing
Target
% of Parks and Recreation Department customers
surveyed who rate services as good or excellent 95% 98% 98% 85% % of programs maintaining minimum registration 73% 78% 79% 80% % Department's total cost recovery for all (direct and
indirect) costs 53% 55% 59% 40%
% change in participants 119% 16% 14% 1%
FY 2024-25 Proposed Budget Parks and Recreation 359
913
CC 05-21-2024
913 of 1220
Workload Indicators
Business and Community Services Division
Workload Indicator FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Number of reservations at Quinlan Center 260 405 210
Number of festival applications received 9 10 0
Recreation and Education Division
Workload Indicator FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Number of registrations 2,736 3,756 2,636
Number of survey respondents 85 95 41
Number of Senior Center classes offered 183 235 178
Number of Senior Center trips offered 3 14 9
Sports, Safety, and Outdoor Recreation Division
Workload Indicator FY 2022
July-June
FY 2023
July-June
FY 2024
July-Dec
Number of programs offered 1445 1256 705
Number of picnic reservations @ BBF 123 152 107
Rounds of golf at BBF Golf Course 45,367 37,961 21,950
Sports Center Memberships 1,186 1,394 1,474
Proposed Budget
It is recommended that City Council approve a budget of $10,907,462 for the Parks and Recreation department.

This represents a decrease of $1,448,264 (-11.7%) from the FY 2023-24 Adopted Budget.

The decrease is due to decreases in part-time staff, contracts and Cost Allocation. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The following table illustrates the Service-Level Reductions for the department.

FY 2024-25 Proposed Budget Parks and Recreation 360
914
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914 of 1220
Grouping Service-Level Reduction Fiscal
Impact Service-Level Impact Narrative
Operations and
Maintenance
Shift Credit Card Fees to
Customers $(176,669) Customers would pay credit card transactionfees Operations and
Maintenance
Reduce Funding for Library
Extra Hours $(160,000)
No immediate impact on current operational
hours. Santa Clara County Library District has
historically received funds from the state to
cover these costs
Operations and
Maintenance
Reduce Parks and
Recreation Expenses $(28,196)
Elimination of Helping Hands program,
consolidated Preschool Program with a focus on
the 3-year-old program, removed budgets for
overtime, and realign with budget actuals
Operations and
Maintenance
Reduce Park Ranger
Services $(31,155)
Reduced ranger presence at the Stevens Creek
Corridor, Environmental Education Center, and
some nature-based programs and events
Operations and
Maintenance
Reduce Senior Center PartTime Staffing and Supplies $(21,748) Estimated longer wait times for the front desk,
reduced rental support and amenities offered
for Senior programs and events
Fiscal
Accountability
Consolidate Swim Lessons
Program $(87,118)
Consolidate Swim Lessons into BBF Operations,
reduced overall part-time costs and program
supplies
Community
Benefit Reduce 4th of July Funding $(123,344) Elimination of 4th of July evening fireworks Total $(627,917)
FY 2024-25 Proposed Budget Parks and Recreation 361
915
CC 05-21-2024
915 of 1220
Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures

43.4%

31.6%

14.5%

10.5%
Sports, Safety and Outdoor Recreation
Recreation and Education
Parks and Recreation
Business and Community Services
$9.76M
$10.6M
$12.4M
$10.9M
2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget FY 2024-25 Proposed Budget Parks and Recreation 362
916
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916 of 1220
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Use of Money and Property $ 758,156 $ 790,052 $ 821,007 $ 840,420 Charges for Services $ 4,405,909 $ 5,261,531 $ 4,867,067 $ 3,972,770 Miscellaneous Revenue $ 2,521 $ 27,411 $ 30,500 $ 29,500 Transfers In $ 452,304 $ - $ - $ -
Total Revenues $ 5,618,890 $ 6,078,994 $ 5,718,574 $ 4,842,690 Expenditures
Employee Compensation $ 2,818,650 $ 3,704,795 $ 4,452,134 $ 4,173,717 Employee Benefits $ 1,043,311 $ 859,238 $ 1,466,688 $ 1,642,726 Materials $ 343,553 $ 453,490 $ 465,268 $ 414,267
Contract Services $ 3,409,853 $ 3,921,765 $ 4,087,409 $ 2,256,409 Cost Allocation $ 2,018,870 $ 1,559,137 $ 1,681,979 $ 2,322,642 Special Projects $ 2,947 $ 30,092 $ 25,000 $ -
Other Financing Uses $ 124,102 $ 64,377 $ 124,102 $ 64,377 Contingencies $ - $ - $ 53,146 $ 33,324
Total Expenditures $ 9,761,286 $ 10,592,894 $ 12,355,726 $ 10,907,462 Fund Balance $ 548,188 $ 692,023 $ (1,229,040) $ (610,426) General Fund Costs $ 4,690,584 $ 5,205,925 $ 5,408,112 $ 5,454,346 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.

FY 2024-25 Proposed Budget Parks and Recreation 363
917
CC 05-21-2024
917 of 1220
Position Title 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.90 0.90 0.90 0.90

ASST DIR RECREATION COMM
SVCS

0.95 0.85 0 0

COMMUNITY OUTREACH

SPECIALIST

0.70 2.00 1.00 1.00
DIRECTOR OF PARKS REC 0.95 0.95 1.00 1.00
FACILITY ATTENDANT 3.00 3.00 3.00 3.00
MANAGEMENT ANALYST 1.00 2.00 1.00 1.00
OFFICE ASSISTANT 2.00 2.00 2.00 2.00
RECREATION COORDINATOR 11.43 9.88 9.88 9.88
RECREATION MANAGER 0 1.90 3.85 3.85
RECREATION SUPERVISOR 3.95 2.00 0 0
SENIOR MANAGEMENT ANALYST 0 0 1.00 1.00
SR OFFICE ASSISTANT 3.00 4.00 4.00 4.00
Total 27.88 29.48 27.63 27.63
FY 2024-25 Proposed Budget Parks and Recreation 364
918
CC 05-21-2024
918 of 1220
Recreation Administration
Budget Unit 100-60-601
General Fund - Parks and Recreation - Recreation Administration Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 1,423,593
Fund Balance $ -
General Fund Costs $ 1,423,593
% Funded by General Fund 100.0%
Total Staffing 4.9 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, outreach for, and improvements of parks and open spaces in conjunction with the Parks and Recreation System Master Plan.

Monitor and facilitate partnerships with other community organizations.

Perform outreach to the community regarding Parks and Recreation programs, events, and services.

Pursue additional financial support in scholarships and grants from local organizations and Federal and State governments.

Proposed Budget
It is recommended that City Council approve a budget of $1,423,593 for the Recreation Administration program. This represents an increase of $65,449 (4.8%) from the FY 2023-24 Adopted Budget.

The increase is due to increases in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The table below shows the service-level reductions for this program.

FY 2024-25 Proposed Budget Parks and Recreation 365
919
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919 of 1220
Grouping Service-Level Reduction Fiscal
Impact Service-Level Impact Narrative
Operations and
Maintenance
Shift credit card fees to
customers
$(17,049) Customers would pay credit card
transaction fees
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Transfers In $ 49,000 $ - $ - $ -
Total Revenues $ 49,000 $ - $ - $ -
Expenditures
Employee Compensation $ 648,472 $ 700,257 $ 793,876 $ 814,896 Employee Benefits $ 237,781 $ 250,509 $ 314,330 $ 326,474 Materials $ 85,470 $ 132,181 $ 149,173 $ 134,335
Contract Services $ 46,505 $ 62,898 $ 72,988 $ 60,799
Cost Allocation $ - $ - $ - $ 84,659
Special Projects $ 2,947 $ 30,092 $ 25,000 $ -
Contingencies $ - $ - $ 2,777 $ 2,430
Total Expenditures $ 1,021,175 $ 1,175,937 $ 1,358,144 $ 1,423,593 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 972,176 $ 1,175,939 $ 1,358,144 $ 1,423,593 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 2024-25 Proposed Budget Parks and Recreation 366
920
CC 05-21-2024
920 of 1220
Position Title 2022
Actual
2023
Actual
2024 Adopted
Budget
2025 Proposed
Budget
ADMINISTRATIVE ASSISTANT 0.90 0.90 0.90 0.90

ASST DIR RECREATION COMM
SVCS

0.95 0.85 0 0

COMMUNITY OUTREACH

SPECIALIST

0.70 2.00 1.00 1.00
DIRECTOR OF PARKS REC 0.95 0.95 1.00 1.00
MANAGEMENT ANALYST 1.00 2.00 1.00 1.00
SENIOR MANAGEMENT ANALYST 0 0 1.00 1.00
Total 4.50 6.70 4.90 4.90
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Parks and Recreation 367
921
CC 05-21-2024
921 of 1220
Library Services
Budget Unit 100-60-636
General Fund - Parks and Recreation - Library Services
Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 160,427
Fund Balance $ -
General Fund Costs $ 160,427
% 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 $160,427 for the Library Services program. This represents a decrease of $9,271 (-5.5%) from the FY 2023-24 Adopted Budget.

The decrease is due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023. The table below shows the service-level reductions for this program.

The table below shows the service-level reductions for this program.

Grouping Service-Level
Reduction
Fiscal
Impact Service-Level Impact Narrative
Operations and
Maintenance
Reduce Funding for
Library Extra Hours $(160,000)
No immediate impact on current operational
hours. Santa Clara County Library District has
historically received funds from the state to cover
these costs.

Revenues and Expenditures
FY 2024-25 Proposed Budget Parks and Recreation 368
922
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922 of 1220
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Transfers In $ 403,304 $ - $ - $ -
Total Revenues $ 403,304 $ - $ - $ -
Expenditures
Cost Allocation $ 233,790 $ 180,814 $ 169,698 $ 160,427 Total Expenditures $ 233,790 $ 180,814 $ 169,698 $ 160,427 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (169,514) $ 180,814 $ 169,698 $ 160,427 Staffing
There is no staffing associated with this program.

FY 2024-25 Proposed Budget Parks and Recreation 369
923
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923 of 1220
Administration
Budget Unit 100-61-602
General Fund - Business and Community Services - Administration Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ 538,711
Fund Balance $ -
General Fund Costs $ 538,711
% Funded by General Fund 100.0%
Total Staffing 3.0 FTE
Program Overview
The Youth, Teen, Events, and Facilities 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 front line communication with the public for classes, programs, and facility information, and manages the Quinlan Community Center (QCC) and rentals of facilities and park picnic areas.

Service Objectives
Provide first-rate customer service through the implementation of consistent policies, procedures, and performance standards.

Administer recreation soKware 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.

Ensure the delivery of clear and up to date communication on current programs and events to community members.

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 $538,711 for the Administration program. This represents a decrease of $47,646 (-8.1%) from the FY 2023-24 Adopted Budget.

The decrease is mainly due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

Revenues and Expenditures
FY 2024-25 Proposed Budget Parks and Recreation 370
924
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924 of 1220
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 239,347 $ 283,910 $ 259,139 $ 257,101 Employee Benefits $ 150,189 $ 138,473 $ 141,508 $ 154,941 Materials $ 839 $ 1,210 $ 1,151 $ 1,400
Cost Allocation $ 227,216 $ 187,222 $ 184,545 $ 125,251 Contingencies $ - $ - $ 14 $ 18
Total Expenditures $ 617,591 $ 610,815 $ 586,357 $ 538,711 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 617,592 $ 610,815 $ 586,357 $ 538,711 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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget OFFICE ASSISTANT 1.00 1.00 1.00 1.00
RECREATION COORDINATOR 0.35 0.35 0 0
RECREATION SUPERVISOR 0.20 0 0 0
SR OFFICE ASSISTANT 2.00 2.00 2.00 2.00
Total 3.55 3.35 3.00 3.00
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Parks and Recreation 371
925
CC 05-21-2024
925 of 1220
Cultural Events
Budget Unit 100-61-605
General Fund - Business and Community Services - Cultural Events Budget at a Glance
2025 Proposed Budget
Total Revenues $ 29,500
Total Expenditures $ 323,917
Fund Balance $ -
General Fund Costs $ 294,417
% Funded by General Fund 90.9%
Total Staffing 1.0 FTE
Program Overview
The Youth, Teen, and Cultural Events 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, 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, Rotary Fall Festival, Kids N' Fun, Diwali Festival, Bhubaneswar Sister City's India Heritage Fair, Dilli Haat, Holi, Relay for Life, Egg Hunt, and more.

Service Objectives
Provide a summer concert 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 morning celebration.

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 and Civic Center Plaza.

Proposed Budget
It is recommended that City Council approve a budget of $323,917 for the Cultural Events program. This represents a decrease of $113,877 (-26.0%) from the FY 2023-24 Adopted Budget.

The decrease is due to service level reductions in contracts and part-time staffing.

The table below shows the service-level reductions for this program.

Grouping Service-Level Reduction Fiscal Impact Service-Level Impact Narrative Community Benefit Reduce 4th of July Funding $(123,344) Elimination of 4th of July evening fireworks FY 2024-25 Proposed Budget Parks and Recreation 372
926
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926 of 1220
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Miscellaneous Revenue $ 1,221 $ 26,047 $ 30,500 $ 29,500 Total Revenues $ 1,221 $ 26,047 $ 30,500 $ 29,500
Expenditures
Employee Compensation $ 60,544 $ 111,329 $ 135,799 $ 122,520 Employee Benefits $ 31,004 $ 39,218 $ 48,499 $ 52,631
Materials $ 11,501 $ 20,015 $ 17,763 $ 19,222
Contract Services $ 147,282 $ 199,163 $ 152,448 $ 70,216 Cost Allocation $ 52,995 $ 54,537 $ 81,970 $ 58,210
Contingencies $ - $ - $ 1,315 $ 1,118
Total Expenditures $ 303,326 $ 424,262 $ 437,794 $ 323,917 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 302,105 $ 398,216 $ 407,294 $ 294,417 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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget RECREATION COORDINATOR 0.50 0.65 0.75 0.75
RECREATION MANAGER 0 0.25 0.25 0.25
Total 0.50 0.90 1.00 1.00
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Parks and Recreation 373
927
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927 of 1220
Facilities
Budget Unit 100-61-630
General Fund - Business and Community Services - Facilities Budget at a Glance
2025 Proposed Budget
Total Revenues $ 162,000
Total Expenditures $ 278,602
Fund Balance $ -
General Fund Costs $ 116,602
% Funded by General Fund 41.9%
Total Staffing 1.3 FTE
Program Overview
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. The Creekside Park building provides community members with facility space which can be used for a variety of activities.

Service Objectives
Quinlan Community Center
Provide a rental facility for community meetings, business functions, social events, and other similar activities.

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.

Creekside Park Building:

Provide a park or picnic facility for nonprofit board meetings, birthday parties, school group picnics, and other similar activities.

Schedule facility space for contractual and staff-run classes and camps.

Provide space for a year-round farmers' market.

Proposed Budget
It is recommended that City Council approve a budget of $278,602 for the Facilities program. This represents a decrease of $111,609 (-28.6%) from the FY 2023-24 Adopted Budget.

The decrease is due to the reallocation of staffing to the Administration Program for the Senior Wellness Division.

The table below shows the service-level reductions for this program.

FY 2024-25 Proposed Budget Parks and Recreation 374
928
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928 of 1220
Grouping Service-Level Reduction Fiscal
Impact
Service-Level Impact
Narrative
Operations and
Maintenance
Reduce Parks and Recreation
Expenses $(543) Removed budget forovertime
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Use of Money and Property $ 149,113 $ 158,974 $ 151,500 $ 162,000 Charges for Services $ 54,060 $ 59,962 $ 39,492 $ -
Total Revenues $ 203,173 $ 218,936 $ 190,992 $ 162,000
Expenditures
Employee Compensation $ 179,174 $ 241,769 $ 263,714 $ 175,013 Employee Benefits $ 78,350 $ 83,386 $ 96,447 $ 58,641
Materials $ 6,303 $ 16,524 $ 20,374 $ 17,133
Contract Services $ 3,437 $ 4,422 $ 9,315 $ 6,867
Cost Allocation $ - $ - $ - $ 20,648
Contingencies $ - $ - $ 361 $ 300
Total Expenditures $ 267,264 $ 346,101 $ 390,211 $ 278,602 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 64,089 $ 127,164 $ 199,219 $ 116,602 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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget FACILITY ATTENDANT 2.00 2.00 2.00 1.00
RECREATION MANAGER 0 0.25 0.25 0.25
RECREATION SUPERVISOR 0.20 0 0 0
Total 2.20 2.25 2.25 1.25
FY 2024-25 Proposed Budget Parks and Recreation 375
929
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929 of 1220
Staffing has decreased due to the reallocation of a Facility ALendant position to the Senior Wellness Division's Administration program. This was done based on the redistribution of duties and transfer of oversight responsibilities for the Community Hall to that program.

FY 2024-25 Proposed Budget Parks and Recreation 376
930
CC 05-21-2024
930 of 1220
Administration
Budget Unit 100-62-608
General Fund - Recreation and Education - Administration Budget at a Glance
2025 Proposed Budget
Total Revenues $ 42,000
Total Expenditures $ 798,851
Fund Balance $ -
General Fund Costs $ 756,851
% Funded by General Fund 94.7%
Total Staffing 4.0 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. This program also manages Community Hall, which 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.

Service Objectives
Provide management and supervision of all programs, activities, personnel, and facilities within the Senior Wellness 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.

Community Hall
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, and other City meetings.

Proposed Budget
It is recommended that City Council approve a budget of $798,851 for the Administration program. This represents an increase of $112,589 (16.4%) from the FY 2023-24 Adopted Budget.

The increase is due to the reallocation of staffing from the Facilities program.

FY 2024-25 Proposed Budget Parks and Recreation 377
931
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931 of 1220
The table below shows the service-level reductions for this program.

Grouping Service-Level Reduction Fiscal
Impact Service-Level Impact Narrative
Operations and
Maintenance
Reduce Senior Center Part-Time
Staffing and Supplies $(16,124)
Estimated longer wait times for the front desk,
reduce rental support and amenities offered
for Senior programs and events
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Use of Money and Property $ 3,620 $ 28,954 $ 28,000 $ 42,000 Total Revenues $ 3,620 $ 28,954 $ 28,000 $ 42,000
Expenditures
Employee Compensation $ 214,498 $ 320,436 $ 368,351 $ 449,389 Employee Benefits $ 98,575 $ 113,189 $ 140,653 $ 194,902 Materials $ 3,238 $ 8,961 $ 12,707 $ 7,337
Contract Services $ 154 $ 501 $ 5,990 $ 4,990
Cost Allocation $ 192,579 $ 169,903 $ 158,361 $ 142,079 Contingencies $ - $ - $ 200 $ 154
Total Expenditures $ 509,044 $ 612,990 $ 686,262 $ 798,851 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 505,425 $ 584,036 $ 658,262 $ 756,851 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 2024-25 Proposed Budget Parks and Recreation 378
932
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932 of 1220
Position Title 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget FACILITY ATTENDANT 1.00 1.00 1.00 2.00
RECREATION COORDINATOR 0.30 0.30 0.20 0.20
RECREATION MANAGER 0 0 0.75 0.75
RECREATION SUPERVISOR 0.75 0.75 0 0
SR OFFICE ASSISTANT 1.00 1.00 1.00 1.00
Total 3.05 3.05 2.95 3.95
Staff is being reallocated to better reflect actual time spent in this program.

FY 2024-25 Proposed Budget Parks and Recreation 379
933
CC 05-21-2024
933 of 1220
Youth Teen Recreation
Budget Unit 580-62-613
Recreation Program - Recreation and Education - Youth Teen Recreation Budget at a Glance
2025 Proposed Budget
Total Revenues $ 1,155,500
Total Expenditures $ 1,592,949
Fund Balance $ (437,449)
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, special events such as Monster Mash, Breakfast with Santa, and Santa Visits, 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.

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 $1,592,949 for the Youth Teen Recreation program.

This represents a decrease of $110,302 (-6.5%) from the FY 2023-24 Adopted Budget.

The decrease is due to reductions in Part-Time Staffing and Contract Services budgets, based on current year actuals.

The table below shows the service-level reductions for this program.

FY 2024-25 Proposed Budget Parks and Recreation 380
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Grouping Service-Level
Reduction
Fiscal
Impact Service-Level Impact Narrative
Operations and
Maintenance
Shift Credit Card
Fees to Customers $(52,316) Customers would pay credit card transaction fees Operations and
Maintenance
Reduce Parks and
Recreation Expenses $(12,391) Consolidated Preschool Program with a focus on the 3-year-old program and removed budgets for overtime Total $(64,707)
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Use of Money and Property $ - $ 252 $ - $ -
Charges for Services $ 854,411 $ 1,155,760 $ 1,258,800 $ 1,155,500 Miscellaneous Revenue $ - $ 79 $ - $ -
Total Revenues $ 854,411 $ 1,156,091 $ 1,258,800 $ 1,155,500 Expenditures
Employee Compensation $ 228,842 $ 323,612 $ 400,718 $ 346,808 Employee Benefits $ 46,063 $ (22,126) $ 99,475 $ 115,052 Materials $ 8,431 $ 22,818 $ 25,547 $ 20,818
Contract Services $ 504,134 $ 640,163 $ 943,555 $ 761,226 Cost Allocation $ 176,360 $ 111,417 $ 168,316 $ 315,740 Other Financing Uses $ 53,526 $ 23,529 $ 53,526 $ 23,529 Contingencies $ - $ - $ 12,114 $ 9,776
Total Expenditures $ 1,017,356 $ 1,099,413 $ 1,703,251 $ 1,592,949 Fund Balance $ (162,944) $ 56,678 $ (444,451) $ (437,449) 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.

FY 2024-25 Proposed Budget Parks and Recreation 381
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Position Title 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget RECREATION COORDINATOR 1.35 1.50 1.50 1.50
RECREATION MANAGER 0 0.20 0.20 0.20
RECREATION SUPERVISOR 0.35 0 0 0
Total 1.70 1.70 1.70 1.70
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Parks and Recreation 382
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Senior Center
Budget Unit 100-62-623
General Fund - Recreation and Education - Senior Center Budget at a Glance
2025 Proposed Budget
Total Revenues $ 220,000
Total Expenditures $ 686,501
Fund Balance $ -
General Fund Costs $ 466,501
% Funded by General Fund 68.0%
Total Staffing 1.9 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 and other local nonprofit agencies.

Provide appreciation event 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 $686,501 for the Senior Center program. This represents a decrease of $125,763 (-15.5%) from the FY 2023-24 Adopted Budget.

The decrease is due to reductions in Cost Allocation expenses and the reallocation of some staff time based on current duties. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The table below shows the service-level reductions for this program.

FY 2024-25 Proposed Budget Parks and Recreation 383
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Grouping Service-Level Reduction Fiscal
Impact Service-Level Impact Narrative
Operations
and
Maintenance
Reduce Senior Center
Part-Time Staffing and
Supplies
$(5,311)
Estimated longer wait times for the front desk, reduced rental support and amenities offered for Senior
programs and events
Operations
and
Maintenance
Reduce Parks and
Recreation Expenses $(5,250) Removed budget for overtime Total $(10,651)
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ 68,829 $ 186,720 $ 240,000 $ 220,000 Miscellaneous Revenue $ 1,300 $ 85 $ - $ -
Total Revenues $ 70,129 $ 186,805 $ 240,000 $ 220,000
Expenditures
Employee Compensation $ 127,258 $ 303,157 $ 302,172 $ 261,929 Employee Benefits $ 125,249 $ 111,075 $ 98,029 $ 92,343 Materials $ 32,840 $ 103,320 $ 97,324 $ 88,554
Contract Services $ 27,134 $ 61,048 $ 128,190 $ 118,104 Cost Allocation $ 294,244 $ 228,854 $ 183,730 $ 122,988 Contingencies $ - $ - $ 2,819 $ 2,583
Total Expenditures $ 606,725 $ 807,454 $ 812,264 $ 686,501 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 536,596 $ 620,649 $ 572,264 $ 466,501 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 2024-25 Proposed Budget Parks and Recreation 384
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Position Title 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget RECREATION COORDINATOR 2.70 2.70 1.80 1.60
RECREATION MANAGER 0 0 0.25 0.25
RECREATION SUPERVISOR 0.25 0.25 0 0
Total 2.95 2.95 2.05 1.85
Staffing has been reallocated to better reflect actual time spent in this program.

FY 2024-25 Proposed Budget Parks and Recreation 385
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Teen Programs
Budget Unit 100-62-639
General Fund - Recreation and Education - Teen Programs Budget at a Glance
2025 Proposed Budget
Total Revenues $ 8,670
Total Expenditures $ 263,802
Fund Balance $ -
General Fund Costs $ 255,132
% Funded by General Fund 96.7%
Total Staffing 0.8 FTE
Program Overview
This program supports teen programs and services for the Youth, Teens, Events, and Facilities Division. It provides for the supervision and support for the Youth Activity Board and the teen summer volunteer program and also produces teen events, such as the Cupertino Café, <hack> Cupertino, and the teen movie nights. This program also oversees the Monta Vista Recreation Center, which provides additional facility space for youth and teen programs and is home to a diverse array of recreation activities including gymnastics classes.

Service Objectives
Empower youth by creating enriching and stress-free programs that foster physical, mental, and social development.

Provide space for Cupertino Teens to de-stress, create, study, and to socially develop.

Create opportunities for youth and teens to build their leadership abilities by creating activities, events, and programs by teens for teens.

Create reciprocal engagement and outreach efforts between the City of Cupertino and Cupertino teens.

Provide the opportunity for teens to gain applied skills and develop leadership abilities by participating in the teen summer volunteer program.

Create programs that support mental health and wellness in youth and teens.

Monta Vista Recreation Center:

Provide space to host gymnastics, class, and camps.

Provide space to host additional youth and teen programs, classes, and camps.

Make space available for co-sponsored clubs and rentals.

Proposed Budget
It is recommended that City Council approve a budget of $263,802 for the Teen Programs program. This represents a decrease of $15,093 (-5.4%) from the FY 2023-24 Adopted Budget.

FY 2024-25 Proposed Budget Parks and Recreation 386
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The decrease is due to reductions in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The table below shows the service-level reductions for this program.

Grouping Service-Level Reduction Fiscal Impact Service-Level Impact Narrative Operations and Maintenance Reduce Commission
Expenses $(373) Removed budget for overtime
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Use of Money and Property $ - $ - $ 14,000 $ 8,000
Charges for Services $ - $ - $ - $ 670
Total Revenues $ - $ - $ 14,000 $ 8,670
Expenditures
Employee Compensation $ 61,336 $ 92,087 $ 145,290 $ 147,034 Employee Benefits $ 24,010 $ 29,995 $ 38,355 $ 44,710
Materials $ 11,978 $ 25,752 $ 16,715 $ 16,185
Contract Services $ - $ 3,687 $ 2,800 $ 2,800
Cost Allocation $ 67,715 $ 46,734 $ 75,491 $ 52,836
Contingencies $ - $ - $ 244 $ 237
Total Expenditures $ 165,039 $ 198,255 $ 278,895 $ 263,802 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 165,039 $ 198,255 $ 264,895 $ 255,132 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 2024-25 Proposed Budget Parks and Recreation 387
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Position Title 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget RECREATION COORDINATOR 0.35 0.50 0.50 0.50
RECREATION MANAGER 0 0.25 0.25 0.25
RECREATION SUPERVISOR 0.40 0 0 0
Total 0.75 0.75 0.75 0.75
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Parks and Recreation 388
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Neighborhood Events
Budget Unit 100-62-640
General Fund - Recreation and Education - Neighborhood Events Budget at a Glance
2025 Proposed Budget
Total Revenues $ 6,000
Total Expenditures $ 106,286
Fund Balance $ -
General Fund Costs $ 100,286
% Funded by General Fund 94.4%
Total Staffing 0.3 FTE
Program Overview
The Neighborhood Programs provide a varied schedule of summer events in neighborhood parks. Events include outdoor concerts, outdoor movies, the Cupertino Campout, and performances in the parks. These programs are designed to engage new customers and to promote current programs.

Service Objectives
To provide outdoor summer concerts in neighborhood parks.

To provide outdoor summer movies in neighborhood parks.

To provide an array of outdoor cultural special events in neighborhood parks.

To provide activities for kids and families of all ages.

Proposed Budget
It is recommended that City Council approve a budget of $106,286 for the Neighborhood Events program. This represents an increase of $13,414 (14.4%) from the FY 2023-24 Adopted Budget.

The increase is due to increases in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The table below shows the service-level reductions for this program.

Grouping Service-Level Reduction Fiscal Impact Service-Level Impact Narrative
Operations and
Maintenance
Reduce Parks and
Recreation Expenses $(161) Removed budget forovertime
Revenues and Expenditures
FY 2024-25 Proposed Budget Parks and Recreation 389
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Charges for Services $ - $ - $ 4,000 $ 6,000
Total Revenues $ - $ - $ 4,000 $ 6,000
Expenditures
Employee Compensation $ - $ 18,422 $ 46,606 $ 45,194
Employee Benefits $ 176 $ (517) $ 12,041 $ 13,206
Materials $ 422 $ 963 $ 6,377 $ 6,377
Contract Services $ - $ 2,577 $ 12,237 $ 12,000
Cost Allocation $ 27,411 $ 15,579 $ 15,441 $ 29,279
Contingencies $ - $ - $ 170 $ 230
Total Expenditures $ 28,009 $ 37,024 $ 92,872 $ 106,286 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 28,009 $ 37,023 $ 88,872 $ 100,286 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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget RECREATION COORDINATOR 0 0 0.25 0.25
RECREATION SUPERVISOR 0.10 0 0 0
Total 0.10 0 0.25 0.25
There are no changes to the current level of staffing.

FY 2024-25 Proposed Budget Parks and Recreation 390
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Park Facilities
Budget Unit 100-63-612
General Fund - Sports, Safety and Outdoor Recreation - Park Facilities Budget at a Glance
2025 Proposed Budget
Total Revenues $ 200,020
Total Expenditures $ 1,541,846
Fund Balance $ -
General Fund Costs $ 1,341,826
% Funded by General Fund 87.0%
Total Staffing 3.5 FTE
Program Overview
Blackberry Farm provides the community with recreational space to swim, picnic, participate in ranger-led activities, and walk the Stevens Creek Trail. McClellan Ranch Preserve offers environmental education classes, nature programs, including camps, and creek tours for school groups. It is also the location of the Community Garden program and non-profit operations such as Grassroots Ecology, Santa Clara Valley Audubon Society, UCCE Master Gardeners, and Rolling Hills 4-H Club.

Service Objectives
Blackberry Farm Picnic Grounds and Pools:

Provide the community with two pools for recreational use, swim lessons, and lap swim.

Engage and provide the community with annual Pooch Plunge event.

Increase residential usage of the facility.

Continue to offer Park Ranger-led activities such as interpretive walks, star-gazing events, and implement a Stevens Creek Corridor volunteer program.

McClellan Ranch Preserve:

Continue to offer drop-in visitor hours at the Environmental Education Center and Blacksmith Shop.

Partner with SCVAS, Grassroots Ecology, Watershed Stewardship Program Members, Santa Clara Valley Audubon Society, Rolling Hills 4H and UCCE Master Gardeners in providing public education programs.

Expand programming opportunities for youth and families.

Increase volunteer/docent opportunities at McClellan Ranch.

Continue to develop the community garden programming.

Proposed Budget
It is recommended that City Council approve a budget of $1,541,846 for the Park Facilities program. This represents an increase of $271,482 (21.4%) from the FY 2023-24 Adopted Budget.

FY 2024-25 Proposed Budget Parks and Recreation 391
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The increase is due to increases in Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The table below shows the service-level reductions for this program.

Grouping Service-Level
Reduction
Fiscal
Impact Service-Level Impact Narrative
Operations and
Maintenance
Reduce Park
Ranger Services $(31,155)
Reduced ranger presence at the Stevens Creek
Corridor, Environmental Education Center, and some
nature-based programs and events
Operations and
Maintenance
Reduce Parks and
Recreation
Expenses
$(5,473) Elimination of Helping Hands program, removed
budget for overtime, and realign with budget actuals
Fiscal Accountability Consolidate Swim
Lessons Program $(14,147)
Consolidate Swim Lessons into BBF Operations,
reducing overall part-time costs and program
supplies
Total $(51,045)
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Use of Money and Property $ 66,690 $ 44,273 $ 51,257 $ 56,420 Charges for Services $ 128,517 $ 97,244 $ 116,000 $ 143,600 Total Revenues $ 195,207 $ 141,517 $ 167,257 $ 200,020
Expenditures
Employee Compensation $ 432,890 $ 579,506 $ 726,452 $ 678,260 Employee Benefits $ 100,094 $ 134,397 $ 176,101 $ 222,809 Materials $ 36,806 $ 35,127 $ 46,883 $ 35,843
Contract Services $ 81,244 $ 98,827 $ 97,669 $ 111,137
Cost Allocation $ 261,016 $ 166,140 $ 221,484 $ 491,960 Contingencies $ - $ - $ 1,775 $ 1,837
Total Expenditures $ 912,050 $ 1,013,997 $ 1,270,364 $ 1,541,846 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 716,843 $ 872,481 $ 1,103,107 $ 1,341,826 Staffing
FY 2024-25 Proposed Budget Parks and Recreation 392
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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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget RECREATION COORDINATOR 2.18 1.98 1.98 2.13
RECREATION MANAGER 0 0.35 0.35 0.55
RECREATION SUPERVISOR 0.50 0 0 0
SR OFFICE ASSISTANT 0 0.85 0.85 0.85
Total 2.68 3.18 3.18 3.53
Staffing has been reallocated to better reflect actual time spent in this program.

FY 2024-25 Proposed Budget Parks and Recreation 393
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Administration
Budget Unit 100-63-615
General Fund - Sports, Safety and Outdoor Recreation - Administration Budget at a Glance
2025 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.0 FTE
Program Overview
In FY 2022-2023, this program was divided and absorbed into the Sports, Safety, and Outdoor Recreation - Park Facilities and Outdoor Recreation programs. A complete discussion of the program can be found under Budget Unit 100-63-612 and 580-63-620. 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.

FY 2024-25 Proposed Budget Parks and Recreation 394
948
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Category 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 19,660 $ - $ - $ -
Employee Benefits $ 8,547 $ 734 $ - $ -
Materials $ 145 $ 145 $ - $ -
Cost Allocation $ 37,070 $ 23,654 $ - $ -
Total Expenditures $ 65,422 $ 24,533 $ - $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 65,423 $ 24,533 $ - $ -
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 2022 Actual 2023 Actual 2024 Adopted Budget 2025 Proposed Budget RECREATION SUPERVISOR 0.45 0 0 0
Total 0.45 0 0 0
There is no staffing associated with this program.

FY 2024-25 Proposed Budget Parks and Recreation 395
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Blackberry Farm Golf Course
Budget Unit 560-63-616
Blackberry Farm - Sports, Safety and Outdoor Recreation - Blackberry Farm Golf Course Budget at a Glance
2025 Proposed Budget
Total Revenues $ 688,000
Total Expenditures $ 566,423
Fund Balance $ 121,577
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 1.7 FTE
Program Overview
Blackberry Farm Golf Course provides a nine-hole golf facility to the community that serves all ages.

Service Objectives
Increase the golfer base through leagues, high school golf partnerships, and Youth on Course participation.

Continue to offer special events such as Glow Night Golf and the Spring Swing Scramble.

Continue to provide exceptional customer service in the Golf Pro Shop where customers may rent golf clubs or purchase golfing accessories and concessions.

Proposed Budget
It is recommended that City Council approve a budget of $566,423 for the Blackberry Farm Golf Course program. This represents a decrease of $75,919 (-11.8%) from the FY 2023-24 Adopted Budget.

The decrease is due to the reallocation of the maintenance budget for the Blackberry Farm Golf Course to Public Works, under 560-84-268.

The table below shows the service-level reductions for this program.

Grouping Service-Level Reduction Fiscal
Impact Service-Level Impact Narrative
Operations and
Maintenance
Shift Credit Card Fees to
Customers $(11,791) Customers would pay credit cardtransaction fees Operations and
Maintenance
Reduce Parks and Recreation
Expenses $(401) Removed budget for overtime
Total $(12,192)
FY 2024-25 Proposed Budget Parks and Recreation 396
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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.