CC 05-21-2024
#10
FY 2023-24 Third Quarter
Presentation
May 21, 2024
Fiscal Year 2023 -24
Third Quarter Financial Report
CC 05-21-2024 Item No. 10
FY 2023-24 Third Quarter Update
Proposed Budget Adjustments
Recommendations and Next Steps
Agenda
FY 2023-24 Third Quarter Update
FY 2023-24
Adopted
Budget
FY 2023-24
Q1 Year-End
Projection
FY 2023-24
Q2 Year-End
Projection
FY 2023-24
Q3 Year-End
Projection
Revenues $80.3 $112.8 $113.3 $133.8
Expenditures $86.1 $121.8 $122.3 $121.7
Changes to
Fund
Balance
$(5.8) $(9.0) $(9.0) $12.1
FY 2023-24 Amended Budget – General Fund
($ in Millions)
Classification
FY 2022-23
Year End
Projection
FY 2023-24
Q1 Year-End
Projection
FY 2023-24
Q2 Year-End
Projection
FY 2023-24
Q3 Year-End
Projection
Restricted 20.7 18.8 20.7 20.7
Committed
Capital Projects Reserve 10.0 10.0 - -
Economic Uncertainty
Reserve 24.0 24.0 18.0 18.0
Sales Tax Repayment Reserve - - 56.5 74.5
Sustainability Reserve 0.1 0.1 0.1 0.1
Unassigned 80.3 66.3* 26.0* 26.6*
Other Classifications 5.4 5.4 5.4 5.4
Total Fund Balance $140.6 $124.6* $126.8* $150.0*
Fund Balance – General Fund ($ in millions)
*Excludes unrealized revenues from The Rise
• Initial allocation of $56.5 million (disputed
sales tax revenue received between April
1, 2021 and June 30, 2023)
• Disputed sales tax revenue is expected to
be $74.5 million by June 30, 2024
• Propose increasing the reserve to $74.5
million as part of the Third Quarter
Financial Report
Sales Tax Repayment Reserve
Proposed Budget Adjustments
Fund Revenue Expenditure Change in Fund Balance
General Fund 19,710,094 (624,106) 20,334,200
Special Revenue
Funds - 250,000 (250,000)
Capital Projects Funds 300,000 - 300,000
Enterprise Funds - (691) 691
Internal Service Funds - (90,183) 90,183
Total $20,010,094 $(464,980) $20,475,074
Proposed Budget Adjustments by Fund
Proposal Revenue Expenditures Change in Fund Balance
GENERAL FUND
Adjust Sales Tax Revenue 19,382,332 - 19,382,332
Supplemental Law Enforcement Services 327,762 250,000 77,762 Increased Legal Costs - 200,000 (200,000)
Defund - CWP Analyze Potential Revenue Measures - (22,450) 22,450 Defund - FY 2022-23 Software Budget Carryover - (500,000) 500,000 Defund - FY 2022-23 Training Budget Carryover - (16,896) 16,896 Defund - Performance Management App Special Project - (32,000) 32,000 Defund - Project Dox Special Project - (30,274) 30,274 Defund - ERP Phase III - (375,000) 375,000
Defund - Overpasses and Medians Trench Work - (40,000) 40,000 Defund - City Hall Electrical Preventative Maintenance - (9,500) 9,500 Defund - Shuttle Pilot Program - (10,574) 10,574
Defund - Traffic Engineering Adaptive Traffic Signaling - (5,970) 5,970 Defund - Traffic Signal Maintenance Adaptive Traffic Signaling - (16,042) 16,042 Defund - Sustainable Infrastructure Audit - (10,000) 10,000 Defund - 4H Fence - (5,400) 5,400
Proposed Budget Adjustments
Proposal Revenue Expenditures Change in Fund Balance
SPECIAL REVENUE FUNDS
Transfer from Storm Drain Improvement to Capital Reserve - 300,000 (300,000) Defund - Support for the Unhoused - (50,000) 50,000
CAPITAL PROJECT FUNDS
Transfer from Storm Drain Improvement to Capital Reserve 300,000 - 300,000
ENTERPRISE FUNDS
Defund - Windscreens
- (691) 691
INTERNAL SERVICE FUNDS
Defund - CWP Cyber Security Public Education
- (6,183) 6,183
Defund - Security Framework and Audit - (30,000) 30,000 Defund - Council Voting System and Timer - (32,000) 32,000 Defund - Public Bike Smart Rack DockTech - (2,000) 2,000 Defund - Facility Battery - (20,000) 20,000
Total $20,010,094 $ (464,980) $ 20,475,074
Proposed Budget Adjustments (Cont.)
• No changes recommended
Staffing
• As of March 31, 2024, no funds have been spent.
• Staff will continue to report on the use of this fund. 4th Quarter Preview
• Some funds have been used for Public Employees
Appreciation Week
• Funds are anticipated to be used for additional
Internal Audit costs to complete the CWP Citywide
policies
City Manager Discretionary Fund
Recommendations and Next Steps
1. Receive the City Manager’s Third Quarter Financial
Report for Fiscal Year 2023-24;
2. Adopt Resolution No. 24-XXX and Budget
Modification 2324-340 decreasing appropriations
by $464,980 and increasing revenues by
$20,010,094
Recommendations
Roadmap to FY 2024-25 Budget Adoption and Balancing
Council Goal Setting/
Work Program
Budget Update
1st Quarter Report
Budget Update
Mid-Year Report
Fee Study and
Revenue Tax
Measures
Budget Update
SLR Review #2
FY 2024-25 Proposed
Budget
-Community Funding
-Festivals & Fee Waivers
FY 2024-25 Adopted
Budget
Budget Update
Service Level Reduction
(SLR) Preview
October 2023 November 2023 January 2024
April 2024 June 2024
February 2024
Community Budget
Meeting #1
Commission/
Committee Feedback
Labor Contracts
March 2024
Budget Update
3rd Quarter Report
May 2024
City Hall &
Blackberry Farm
Update
Community
Budget Meeting #2
Budget Update
-Audit Update
-Committed Reserve
Revenue Tax
Measures
December 2023
Budget Update
Capital Improvement
Plan (CIP)
Last Updated 5.01.2024
• Proposed Budget Study Session May 21
• Final Budget Adoption and Hearing June 4
Next Steps
Questions?
CC 05-21-2024
#11
FY 2024-25 Proposed
Budget
Presentation
May 21, 2024
Fiscal Year 2024- 25
Proposed Budget
CC 0 5-21-202 4 Item No. 11
2 Study Session Objectives
Present City Manager’s Proposed
Budget
Receive comments and questions
from Council and Public
Gather feedback and return with
updates for Final Budget Hearing on
June 4
th
3 FY 2024-25 Themes
Resilience and
adaptation
Building on a
strong fiscal
foundation
Implementing
the plan
Community
engagement and
collaboration
Roadmap to FY 2024-25 Budget Adoption and Balancing
Council Goal Setting/
Work Program
Budget Update
1st Quarter Report
Budget Update
Mid-Year Report
Fee Study and
Revenue Tax
Measures
Budget Update
SLR Review #2
FY 2024-25 Proposed
Budget
-Community Funding
-Festivals & Fee Waivers
FY 2024-25 Adopted
Budget
Budget Update
Service Level Reduction
(SLR) Preview
October 2023 November 2023 January 2024
April 2024 June 2024
February 2024
Community Budget
Meeting #1
Commission/
Committee Feedback
Labor Contracts
March 2024
Budget Update
3rd Quarter Report
May 2024
City Hall &
Blackberry Farm
Update
Community
Budget Meeting #2
Budget Update
-Audit Update
-Committed Reserve
Revenue Tax
Measures
December 2023
Budget Update
Capital Improvement
Plan (CIP)
Last Updated 5.01.2024
Community Outreach by the Numbers
• City Website
cupertino.org/budget
• Interactive Financial
Transparency Portal
cupertino.org/opengov
• Budget Learning Library
cupertino.org/budgetlearning
library
Accessing the Budget
6 Financial Forecast Review by Baker Tilly
General Fund Forecast
General Fund Overview
All Funds Overview
Service-Level Reductions
Proposed Budget Requests
Issues and Challenges
Agenda
7 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2024 Baker Tilly US, LLP.
City of Cupertino
Financial
Forecast Review
Steve Toler, Director
May 21, 2024
Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2024 Baker Tilly US, LLP.
Steve Toler
DIRECTOR
M: +1 (650) 740-7007
E: [email protected]
10 Project Overview
CUPERTINO FINANCIAL FORECAST REVIEW
Phase I
Independent
Analysis
of
Long-Range Forecast
Phase II
Prepare
Fiscal
Sustainability Plan
11 Financial Forecasting in Local Government
CUPERTINO FINANCIAL FORECAST REVIEW
• Fiscal management tool to inform and
assist in decision-making
• Identifies future revenue and
expenditure trends
• Integral to annual budget process
• Promotes sound fiscal discipline in
service delivery
• Credible
• Understandable
• Linked to sound fiscal practices
How They Are Used
What Makes Them Useful
12 City’s Forecast – Our Initial Reactions
CUPERTINO FINANCIAL FORECAST REVIEW
Excel-based model
Trend analysis of
historical actual
results
Future trends at
detailed categories
for revenues and
expenditures
Tracks overall
impacts to reserves
Provides good
storytelling
graphics to inform
decisions
Has ability to grow
based on the
agency’s needs
13 Updates to Key Assumptions
CUPERTINO FINANCIAL FORECAST REVIEW
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:
• Revised the sales tax growth rate assumption.
• Adjusted the recession scenario to every 7 years to align with post-World War II patterns.
• Incorporated 2% salary savings to account for vacant positions. • Revised CPI assumption.
• Adjusted interest earnings to fluctuate with current reserve balances and yields.
• Adjusted the Economic Uncertainty Reserve level to fluctuate every year based on annual revenues and expenditures.
These improvements have led to a more refined forecast. 14 Executive Summary of Our Independent Review
CUPERTINO FINANCIAL FORECAST REVIEW
FY 2025 financial forecast provides a reasonable basis upon which to inform Council’s decisions for the proposed FY 2025 budget
Staff has improved the forecast based on our interactions and discussions during the project
Improvement recommendations will not significantly change the story of the City’s fiscal health, but should be considered to better refine future forecasts General Fund Forecast
Forecast Revenue Assumptions1
16 Account Assumption Description
Sales Tax Moderate
(2.9% AAGR)
HdL’s forecast in FY 2024-25
Moderate trend after
Property Tax Moderate
(3.0% AAGR)
HdL’s forecast in FY 2024-25
Moderate trend after
Transient
Occupancy
Tax
Moderate
(2.1% AAGR)
Recovery to $7.5M in FY 2023-24
Moderate trend after
1Forecasts assume recession (no growth) in FY 2027-28 for all revenue categories except Property Tax
Forecast Expenditure Assumptions
Account Assumption Description
Compensation 3.2% AAGR Elimination of 5 FTEs in FY 2024-25 Benefits 1.2% AAGR Based on CalPERS projections
Increases to health insurance contributions
Materials 2.4% AAGR CPI
Contracts 3.7% AAGR CPI
Law enforcement contract = CPI + 2%
Contingencies 0.4% AAGR 1.25% of Materials and Contracts Transfers -0.4% AAGR
Resumption of $2 million annual transfers to the
Capital Reserve in FY 2029-30
Facility debt paid off in FY 2029-30
17 -$0.1M
$0.9M
$1.2M
$0.4M
-$0.2M
-$2.7M -$2.9M
-$4.9M
-$5.9M
-$7.0M
Annual Operating Surplus/(Deficit) – General Fund
18 Recession scenario
Sunset of Utility User Tax
in November 2030,
resulting in a loss of
revenue of over $4M
annually
Resumption of $2M
transfers
to Capital Reserve
19 -$20.0M
$0.0M
$20.0M
$40.0M
$60.0M
$80.0M
$100.0M
$120.0M
$140.0M
$160.0M
$180.0M
10-Year Fund Balance and Reserves – General Fund
Sales Tax Repayment Reserve Economic Uncertainty Pension Trust Unassigned Assigned Sustainability Reserve
Public Access Television CASp Certification and Training Annual Operating Surplus/(Deficit) Fund Balance – General Fund
Classification
Year End
Projection
2023-24
Proposed
2024-25
Projected
2033-34
Restricted 20.7 20.7 1.6
Committed
Economic Uncertainty Reserve 18.0 21.3 26.0
Sales Tax Repayment Reserve 74.5 77.6 97.8
Sustainability Reserve 0.1 0.1 0.1
Unassigned 26.6 22.8 -
Other Classifications 10.2 7.4 3.4
Total Fund Balance $150.1 $149.9 $128.8
General Fund Overview
Balancing the General Fund Budget
23 Sales Tax
$11.4M
Sales Tax
$11.6M
Property Tax
$31.7M
Property Tax
$33.2M
Transient
Occupancy
$7.5M
Transient
Occupancy
$7.7M
Charges for Services
$11.9M
Charges for Services
$15.1M
Other Revenues,
$17.7M
Other Revenues,
$22.1M
Total
$80.3M
Total
$89.8M
FY 2023-24 Adopted FY 2024-25 Proposed
General Fund Revenues
Note: Numbers may not add to total due to rounding.
General Fund Revenues
Category FY 2023-24 Adopted FY 2024-25 Proposed $ Change % Change Sales Tax 11,428,930 11,648,962 220,032 1.9%
Property Tax 31,736,834 33,174,977 1,438,143 4.5%
Transient Occupancy 7,500,000 7,731,947 231,947 3.1%
Utility Tax 3,304,742 4,130,140 825,398 25.0%
Franchise Fees 3,443,574 3,509,346 65,772 1.9%
Other Taxes 1,641,486 1,684,329 42,843 2.6%
Licenses & Permits 4,265,081 3,665,866 (599,215) -14.0% Use of Money & Property 2,328,336 4,697,122 2,368,786 101.7% Intergovernmental 807,624 2,471,990 1,664,366 206.1%
Charges for Services 11,894,786 15,123,336 3,228,550 27.1% Fines & Forfeitures 405,000 395,000 (10,000) -2.5%
Miscellaneous 1,142,836 1,210,653 67,817 5.9%
Transfers in 15,000 15,000 - 0.0%
Other financing sources 367,000 367,000 - 0.0%
Total Revenues $80,281,229 $89,825,668 $9,544,439 11.9% 24 Note: Numbers may not add to total due to rounding.
Compensation and
Benefits
$35.8M
Compensation and
Benefits
$34.7M
Materials
$6.4M
Materials
$5.8M
Contract
Services
$24.8M
Contract
Services
$29.1M
Transfers
$6.5M
Transfers
$7.3M
Other Expenditures,
$12.6M
Other Expenditures,
$13.0M
Total
$86.1M
Total
$89.9M
FY 2023-24 Adopted FY 2024-25 Proposed
General Fund Expenditures
General Fund Expenditures
Category FY 2023-24 Adopted FY 2024-25 Proposed $ Change % Change Employee Compensation 24,781,492 23,388,317 (1,393,175) -6% Employee Benefits 11,004,730 11,329,376 324,646 3%
Total Personnel Costs 35,786,222 34,717,693 (1,068,529) -3% Materials 6,395,466 5,773,144 (622,322) -10%
Contract Services 24,813,166 29,115,394 4,302,228 17%
Cost Allocation 10,257,656 10,638,580 380,924 4%
Capital Outlays &
Special Projects 1,211,157 1,165,000 (46,157) -4%
Contingencies 216,731 254,580 37,849 17%
Transfers Out 6,457,600 7,349,598 891,998 -14%
Other Financing Uses 925,000 925,000 - 0%
Total Expenditures $86,062,998 $89,938,989 $3,875,991 5% 26 Service-Level Reductions
Grouping Reductions
Operations and Maintenance
Reduce sidewalk, curb, and gutter. Move some Public Works contract services in-house, extending maintenance timelines. Reduce Public Works PT staffing. Shift credit card fees to customers. Remove library extra hours from the base due to available State funding to cover these costs. Various other reductions. (2,903,446)
Infrastructure
Reduce funding to CIP of $2M annually for the first 5 years of the forecast. Will utilize the existing fund balance to cover these costs. Lengthen tree trimming cycle, reduce frequency of median maintenance, shift focus of sidewalk maintenance
(2,947,764)
Fiscal Accountability
Align law enforcement costs with prior year actual hours. Reduce applications used in the City, extend tech refresh cycles, and remove the new Enterprise Resource Planning (ERP) software from the budget. (2,750,544)
Community Benefit
Per Council direction, community benefit items have been retained in the budget. Staff is working with non- profit organizations to secure funding for them, but nothing has been finalized. (123,344)
Total $(8,725,098)
Service-Level Reductions1
1Full list of service-level reductions can be found on pages 43-45 of the FY 2024-25 Proposed Budget.
Position Department FTE
Special Project Executive Limited-Term1 Administration -1.00 Public Works Project Manager1 Public Works -1.00
Public Works Project Manager1 Public Works -1.00
Maintenance Worker I/II1 Public Works -1.00
Innovation & Technology Manager1 Innovation & Technology -1.00 Total -5.00
Staffing Reductions
29 FY 2023-24 Adopted Budget
212 FTE
FY 2024-25 Adopted Budget
207 FTE
1Vacant position
All Funds Overview
31 Financial Overview by Fund
Fund Revenues Expenditures
Change in Fund
Balance/
Net Position1
General Fund 89,825,668 89,938,989 (113,321)
Special Revenue Funds 18,616,881 13,956,348 4,660,533
Debt Service Funds 2,676,200 2,676,200 -
Capital Projects Funds 13,635,000 22,057,580 (8,422,580) Enterprise Funds 6,608,500 9,271,222 (2,662,722)
Internal Service Funds 7,784,696 8,643,349 (858,653)
Total All Funds $139,146,945 $146,543,688 $(7,396,743)
1A negative change in fund balance/net position is due to the use of fund balance 32 Sales Tax
$11.4M
Sales Tax
$11.6M
Property Tax
$31.7M
Property Tax
$33.2M
Transient
Occupancy
$7.5M
Transient
Occupancy
$7.7M
Charges for Services
$23.5M
Charges for Services
$27.0M
Intergovernmental
$4.6M
Intergovernmental
$17.1M
Other Revenues
$31.5M
Other Revenues
$42.5M
Total
$110.2M
Total
$139.1M
FY 2023-24 Adopted FY 2024-25 Proposed
All Funds Revenues
Note: Numbers may not add to total due to rounding.
All Funds Revenues
Category FY 2023-24 Adopted FY 2024-25 Proposed $ Change % Change Sales Tax 11,428,930 11,648,962 220,032 2%
Property Tax 31,736,834 33,174,977 1,438,143 5%
Transient Occupancy 7,500,000 7,731,947 231,947 3%
Utility Tax 3,304,742 4,130,140 825,398 25%
Franchise Fees 3,443,574 3,509,346 65,772 2%
Other Taxes 6,305,547 6,312,859 7,312 0%
Licenses & Permits 4,265,081 3,665,866 (599,215) -14%
Use of Money & Property 3,762,886 6,811,066 3,048,180 81% Intergovernmental 4,576,274 17,119,817 12,543,543 274%
Charges for Services 23,459,638 26,968,150 3,508,512 15% Fines & Forfeitures 408,563 415,000 6,437 2%
Miscellaneous 1,142,836 1,210,653 67,817 6%
Transfers in 8,499,600 15,612,178 7,112,578 84%
Other financing sources 367,000 835,984 468,984 128%
Total $110,201,505 $139,146,945 $28,945,440 26% 33
Note: Numbers may not add to total due to rounding.
Compensation and
Benefits
$45.6M
Compensation and
Benefits
$44.4M
Materials
$8.9M
Materials
$8.6M
Contract
Services
$33.0M
Contract
Services
$35.3M
Transfers
$8.5M
Transfers
$15.6M
Other Expenditures
$25.8M
Other Expenditures
$42.6M
Total
$121.8M
Total
$146.5M
FY 2023-24 Adopted FY 2024-25 Proposed
All Funds Expenditures
All Funds Expenditures
Category FY 2023-24 Adopted FY 2024-25 Proposed $ Change % Change Employee Compensation 30,671,196 28,914,628 (1,756,568) -6% Employee Benefits 14,884,120 15,531,628 647,508 4%
Total Personnel Costs 45,555,316 44,446,256 (1,109,060) -2% Materials 8,940,498 8,559,117 (381,381) -4%
Contract Services 32,992,544 35,306,004 2,313,460 7%
Cost Allocation 12,475,250 14,550,523 2,075,273 17%
Capital Outlays 2,907,224 18,759,024 15,851,800 545%
Special Projects 5,322,739 4,404,420 (918,319) -17%
Contingencies 321,066 344,526 23,460 7%
Debt Services 2,677,600 2,676,200 (1,400) 0%
Transfers Out 8,499,600 15,612,178 7,112,578 84%
Other Financing Uses 2,074,020 1,885,440 (188,580) -9%
Total Expenditures $121,765,857 $146,543,688 $24,777,831 20% 35 Proposed Budget Requests
Fund
One-Time
Special
Projects
Ongoing
Special
Projects
Total
Proposals
General Fund 915,000 250,000 1,165,000
Special Revenue Funds - 3,466,911 3,466,911
Enterprise Funds 152,000 210,733 362,733
Internal Service Funds 440,000 440,000
Total All Funds $1,067,000 $4,367,644 $5,434,644
Budget Requests by Fund
37 38
Budget Requests by Department
Department
One-Time
Special
Projects
Ongoing
Special
Projects
Total
Proposals
Council & Commissions - - -
Administration 100,000 - 100,000
Innovation & Technology - - -
Administrative Services - - -
Parks & Recreation - - -
Community Development 200,000 - 200,000
Public Works 767,000 4,367,644 5,134,644
Non-Departmental - - -
Total All Departments $1,067,000 $4,367,644 $5,434,644
Program Project Expenditure Funding Source Strategic Goal
CITY WORK PROGRAM
ADMINISTRATION
120 City Manager CWP - Rise Const Stakeholder Engmt 100,000 General Fund Quality of Life TOTAL ADMINISTRATION 100,000
COMMUNITY DEVELOPMENT
702 Mid Long Term Planning CWP Sign Ordinance Update 200,000 General Fund Quality of Life TOTAL COMMUNITY DEVELOPMENT 200,000
PUBLIC WORKS
800 Public Works Admin CWP Recycled Water Feasibility 200,000 General Fund Sustainability and Fiscal Strategy
122 Sustainability Division CWP Electrification Study 50,000 General Fund Sustainability and Fiscal Strategy
844 Traffic Engineering CWP Active Transportation Plan 330,000 General Fund Transportation TOTAL PUBLIC WORKS 580,000
TOTAL CITY WORK PROGRAM 880,000$
Special Project Requests
39 41
Festival Costs
Waived Fees City Paid expenses Total Costs
Festival Date Festival Producer Recreation Facility/Park/ Road Permits
Public
Works Sheriff Materials Total Notes
Kids N Fun Festival Saturday, August 24, 2024 $1,850 $4,283 $3,395 $4,495 $14,023 Day N Night Fun Fest
Saturday, September 14,
2024 Cupertino Rotary $2,788 $7,259 $5,179 $4,495 $19,721 Bhubaneswar Sister City
City Initiative (CBSCI)
Saturday, September 21,
2024
Cupertino Bhubaneswar Sister
City $2,522 $6,140 $3,961 $3,720 $16,343
Diwali Festival Saturday, October 12, 2024
Cupertino Chamber of
Commerce $2,405 $4,490 $3,404 $5,580 $15,880
Veterans Day November 11, 2024 Veteran's Memorial $1,308 $0 $0 $0 $1,500 $2,808 Egg Hunt Saturday, April 12, 2025
The Home of Christ Church in
Cupertino $500.11 $2,125.00 $67.60 $620.00 $3,312.71
Holi April 2025
Cupertino Chamber of
Commerce $1,471 $2,000 $2,605 $2,790 $8,866
Cherry Blossom Sat.-Sun., April 26-27, 2025 Toyokawa Sister City $6,622 $21,649 $11,633 $11,780 $51,685 Dilli Haat Saturday, June 14, 2025 EnActe $2,849 $7,270 $2,913 $5,425 $18,457 Relay for Life NOT RETURNING IN 2025 American Cancer Society $0 $0 $0 $0 $0 Costs for FY 24/25 Events $22,316 $55,216 $33,159 $38,905 $1,500 $151,096 TOTAL
Waived Fees
$110,690.
79 TOTAL
City Paid $40,405
TOTAL
Festival Costs $151,096
Community Funding
42 Non-Profit Organization FY 2023-24
Funding
FY 2023-24 Program/Project/Event FY 2024-25
Funding
FY 2024-25 Program/Project/Event
AINAK 2,500 Eye Exams & Eyeglasses 2,750 AINAK Eyeglasses Asian American Parents
Association
3,000 2024 Cupertino Multicultural Fair N/A2 N/A2
Cupertino Little League N/A1 N/A1 16,000 Scoreboard Replacement Cupertino Symphonic Band 4,000 Band Equipment 3,000 Band Equipment & Materials No Time to Waste 5,000 7/250 Feed the Need N/A2 N/A2
Omniware Networks 4,000 Mental Health Program N/A2 N/A2 Rotary Club of Cupertino N/A1 N/A1 4,000 House Renovations STEMBoost Corporation 4,000 Elementary Science Olympiad Fund Day/Night
3,000 Elementary Science Olympiad
Summer Workshops
West Valley Community Services 10,000 Gift of Hope 2023 3,750 Gift of Hope 2024 Total $32,500 $32,500
1Organization did not apply for or receive a Community Funding Grant in FY 2023-24. 2Organization did not apply for or receive a Community Funding Grant in FY 2024-25. • General Fund
• Add $32,500 for community funding
• Add $3,905 for festival costs
• Add $2,050 for Artist Awards program
• Increase animal services contract (June 4th
Agenda)
• Reduce fee revenue by $21,200 due to Council’s
direction on permit parking and crane lift fees
• Special Revenue Funds
• Increase SB1 revenue by $212,614
Potential Changes Since Proposed Budget
Printing
43 FY 2024-25
Proposed Budget
May 1, 2024
FY 2024-25
Proposed Budget
May 21, 2024
Revenues 89,825,668 89,804,468
Expenditures 89,938,989 90,041,794
Surplus/(Deficit) (113,221) (237,326)
Potential Changes Since Proposed Budget
Printing – General Fund
44 City Work Program
FY 2024-25 City Work Program
46 Adopted FY 24-25 City Work Program
# Project Description Budget Goal
Ongoing Projects
1 Tree List (CDD) Review and revise development tree list (per Ch. 14.18: Protected Trees) with an emphasis on appropriate trees and native species. $50k allocated Sustainability and Fiscal Strategy
2 Tree List (PW) Project Phases:
1) Review, revise, and communicate street tree list with an emphasis on appropriate trees and native species.
2) Develop an Urban Forest program scope and cost for future consideration.
$60k allocated Sustainability and Fiscal Strategy
3 Public Safety (License Plate
Readers)
Deploy city-owned license plate readers and implement policies to allow neighborhood-owned ones.
$60k allocated Quality of Life
4 Public Safety (Block Leader) Strengthen Block Leader/Neighborhood Watch programs to ensure the leaders are active and expand the coverage of active neighborhoods. $10k allocated Quality of Life
5 Preserve existing and develop new
BMR/ELI Housing
Explore opportunities to preserve existing expiring BMR housing.
Develop ELI (Extremely Low Income) and BMR housing units for Developmentally Disabled individuals (IDD) on City-owned property as well as the County-owned sites.
$250k allocated Housing
6 Whole City Policy Review Repeat the 2013 process of compiling and reviewing all City Policies including 1) Administrative and 2) Council policies and provide recommendations/updates, e.g. Green Purchasing, Property Acquisition $10k allocated Public Engagement and
Transparency
7 Fiscal Procedures and Policies
Handbook
Develop the handbook to ensure standardization of accounting, budget, investment, procurement policies, procedures, rules and regulations.
$45k allocated Sustainability and Fiscal Strategy
8 Support for the unhoused Collaborate and fund jointly with West Valley efforts to address regional needs and find workable support for the Unhoused.
$50k allocated Housing
47 Adopted FY 24-25 City Work Program
# Project Description Budget Goal
Ongoing Projects
9 Municipal Water System To analyze and recommend options for the continued operation of the system currently and at the end of lease with San Jose Water Company in September 2024.
$181k allocated Sustainability and Fiscal
Strategy
10 5G Ordinance Update 5G Ordinance $0 allocated Quality of Life 11 Residential and Mixed Use
Residential Design Standards
Create objective design standards for residential projects, including ensuring adequate buffers from neighborhood
low-density residential development
$240k allocated Quality of Life
12 Art in Public and Private
Areas
(Proposed by Arts & Culture
Commission)
Revisit Municipal Code standards for art in public and
private development, including the standards in the
Municipal Code and developing an Art-in-lieu fee policy. $0 Estimated Quality of Life
13 Speed Limit Lowering (AB 43)
(Proposed by Bike Ped
Commission)
Lower speed limits where feasible pursuant to state
adopted Assembly Bill 43
$0 Estimated Transportation
14 Homestead Bike Lane Study &
Safe Routes to School
(Proposed by Bike Ped
Commission)
Support collaboration efforts on multi-jurisdicitonal projects along Homestead Road that include upgrading pedestrian
and bicycle infrastructure. (The current project phase is focused on preliminary design and is funded to 35%. Future phases, when funded, will focus on 100% plan design
construction)
$0 Estimated Transportation
48 Adopted FY 24-25 City Work Program
# Project Description Budget Goal
Ongoing Projects
15 Poet Laureate Playbook
Update
(Proposed by Library
Commission)
Update the Cupertino Poet Laureate Playbook to streamline processes, outline clear expectations, and expand
applicant qualifications. The playbook has not been
updated since 2016.
$0 Estimated Quality of Life
16 Electrification Study
(Proposed by Sustainability
Commission)
Conduct public outreach, policy research, and coordinate with regional efforts to develop policy options for
electrification of Cupertino's buildings in light of recent legal rulings inhibiting certain electrification efforts.
$50k allocated Sustainability and Fiscal
Strategy
20 Active Transportation Plan This item is a consolidation of existing and new transportation efforts aiming to further goals outlined in the City's Vision Zero Initiative, including:
1) Review and update the bike plan
2) Review and update the pedestrian plan
3) Review current Complete Streets Policy and propose
adjustments to create a better interface between all modes of transportation
$330k Transportation
New Projects
17 Recycled Water Feasibility
Study
(Proposed by Library and
Sustainability Commissions)
Develop Recycled Water Feasibility Study. Include
Blackberry Farm focus and extension of recycled water
from SCVWD.
$200k Estimated Sustainability and Fiscal
Strategy
18 Sign Ordinance Update Sign Ordinance $200k Estimated Quality of Life 19 The Rise: Construction
stakeholder engagement
Improve engagement with stakeholders to ensure progress with construction and reduce barriers.
$100k Estimated Quality of Life
New Projects Total$500,000
Capital Improvement Program (CIP)
Projects External
Funding City Funding
Total
Proposed
Budget
Bollinger Road Corridor Design 425,600 106,400 532,000
Electric Vehicle Charging Station (EVCS) expansion - Service Center 560,000 560,000 McClellan Road Bridge Replacement 5,850,000 5,850,000
Photovoltaic Systems Design & Installation 6,300,000 6,300,000 Roadway Safety Improvements - High Friction Pavement & Speed Feedback Signage 3,205,620 356,180 3,561,800 Vai Avenue Outfall 490,000 490,000
ADA Improvements (Annually funded) 100,000 100,000
Annual Playground Replacement (Year 5 of 5) 300,000 300,000 Street Light Installation - Annual Infill (Annually funded) 35,000 35,000 CIP Preliminary Planning & Design1 125,000 125,000
Capital Project Support1 50,000 50,000
Total $9,481,220 $8,422,580 $17,903,800
FY 2024-25 Proposed CIP Projects
50 1Budgeted appropriations are part of the CIP base budget. As these are not projects, they were not presented to the Council at the CIP study session, but are being included here to show the total CIP budget.
Issues and Challenges
• Potential Sales Tax Reallocation
• Capital Project Funding
• Reduced Staffing
Issues and Challenges
52 Next Steps
54 Next Steps1
May 21, 2024
Proposed
Budget Study
Session
June 4, 2024
Final Budget
Hearing
and
Adoption
Nov 2024
1st Quarter
Financial
Report
1Additional meetings to be added if needed
Questions?