CC 03-04-2025 Searchable Packet.pdf — Cupertino City Council, March 4, 2025 (part 1 of 2)

CITY OF CUPERTINO
CI

TY COUNCIL
AGENDA
10350 Torre Avenue, Council Chamber and via Teleconference Tuesday, March 4, 2025
6:45 PM
Televised Regular Meeting (6:45)

IN-PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION Mem
bers of the public wishing to observe the meeting may do so in one of the following ways:
1) Attend in person at Cupertino Community Hall, 10350 Torre Avenue. 2) Tune to Comcast Channel 26 and AT&T U-Verse Channel 99 on your TV. 3) The meeting will also be streamed live on and online at www.Cupertino.org/youtube and www.Cupertino.org/webcast
Members of the public wishing to comment on an item on the agenda may do so in the following ways:
1) Appear in person at Cupertino Community Hall
2) E-mail comments by 4:00 p.m. on Tuesday, March 4 to the Council at [email protected]. These e-mail comments will also be forwarded to Councilmembers by the City Clerk’s office before the meeting and posted to the City’s website after the meeting. Members of the public that wish to share a document must email [email protected] prior to the meeting.

Emailed comments that are related to an agenda item and received following the agenda publication, prior to or during the meeting, will be posted to the City’s website.

Members of the public may provide oral public comments during the Meeting as follows:

Oral public comments will be accepted during the meeting. Comments may be made during “oral communications” for matters not on the agenda, and during the public comment period for each agenda item.

Oral public comments may be made during the public comment period for each agenda

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item.

Me
mbers of the audience who address the City Council must come to the lectern/microphone, and are requested to complete a Speaker Card and identify themselves.

Completion of Speaker Cards and identifying yourself is voluntary and not required to attend the meeting or provide comments.
3) Teleconferencing Instructions
To address the City Council, click on the link below to register in advance and access the meeting:

Online
Register in advance for this webinar:
https://cityofcupertino.zoom.us/webinar/register/WN_0Io3Fcs1QraQi0hS-Kc5Tg Phone
Dial: 669-900-6833 and enter Webinar ID: 912 7483 4890 (Type *9 to raise hand to speak, *6 to unmute yourself). Unregistered participants will be called on by the last four digits of their phone number.

Join from an H.323/SIP room system:

H.323:
144.195.19.161 (US West)
Meeting ID: 912 7483 4890
SIP: [email protected]
After registering, you will receive a confirmation email containing information about joining the webinar.

Please read the following instructions carefully:

1. You can directly download the teleconference software or connect to the meeting in your internet browser. If you are using your browser, make sure you are using a current and up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers, including Internet Explorer.

2. You will be asked to enter an email address and a name, followed by an email with instructions on how to connect to the meeting. Your email address will not be disclosed to the public. If you wish to make an oral public comment but do not wish to provide your name, you may enter “Cupertino Resident” or similar designation.

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3. When the Mayor calls for the item on which you wish to speak, click on “raise hand,” or, if you are calling in, press *9. Speakers will be notified shortly before they are called to speak.

4. When called, please limit your remarks to the time allotted and the specific agenda topic.

5. Members of the public that wish to share a document must email [email protected] prior to the meeting. These documents will be posted to the City’s website after the meeting.

CALL TO ORDER
P

LEDGE OF ALLEGIANCE

ROLL CALL

CLOSED SESSION REPORT

CEREMONIAL ITEMS

1. Subject: Recognition of March as Youth Art Month
Recommended Action: P resent proclamation recognizing March as Youth Art Month A - Proclamation

2. S ubject: Recognition of March as American Red Cross Month Recommended Action: Present proclamation recognizing March as American Red Cross Month
A - Proclamation

POSTPONEMENTS AND ORDERS OF THE DAY
O

RAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the Council on any matter within t
he jurisdiction of the Council and not on the agenda for discussion. The total time for Oral Communications will ordinarily be limited to one hour. Individual speakers are limited to three (3) minutes. As necessary, the Chair may further limit the time allowed to individual speakers, or reschedule remaining comments to the end of the meeting on a first come first heard basis, with priority given to students. In most cases, State law will prohibit the Council from discussing or making any decisions with respect to a matter not listed on the agenda. A councilmember may, however, briefly respond to statements made or questions posed by speakers. A councilmember may also ask a question for clarification, provide a reference for factual information, request staff to report back concerning a matter, or request that an item be added to a future City Council agenda in response to public comment.

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CONSENT CALENDAR (Items 3-6)
Items appearing on the Consent Calendar are considered routine City business and may be approved by o
ne motion. Typical items may include meeting minutes, awards of contracts, the ratification of accounts payable, and second readings of ordinances. Any member of the Council may request to have an item removed from the Consent Calendar based on the rules set forth in the City Council Procedures Manual. Members of the public may provide input on one or more consent calendar items when the Mayor asks for public comments on the Consent Calendar.

3. S ubject: Approval of February 12, 2025 City Council minutes Recommended Action: App rove the February 12, 2025 City Council minutes A - Draft Minutes

4. S ubject: Approval of February 19, 2025 City Council minutes Recommended Action: App rove the February 19, 2025 City Council minutes A - Draft Minutes

5. Subject: Setting a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and for objections to proposed removal through the Cupertino Brush Abatement Program (Wildland-Urban Interface Fire Area); and adopting a resolution declaring properties as having potential fire hazards from brush and authorizing removal
Recommended Action: Adopt Resolution No 25-017 declaring properties as having potential fire hazards from brush; and set a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and to hear objections to proposed removal
Staff Report
A - Draft Resolution
B – Property owner 30’ WUI Letter
C - Property owner 100’ WUI Letter
D – Notice of Violation

6. Subject: Second reading for Zoning Map Amendment to correct zoning for Priority Housing Site No. 24 in the 6th Cycle Housing Element (Application No.(s): Z-2024-001, EA-2024-001; Applicant: City of Cupertino; APN: 359 13 019; Location: 20865 McClellan Road)
Recommended Action: Conduct the second reading and enact Ordinance No. 25-2268:
“AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO

CORRECTING THE ZONING OF A PRIORITY HOUSING ELEMENT SITE LOCATED AT 20865 MCCLELLAN ROAD FROM R-3 TO R-3/TH TO ENSURE CONSISTENCY WITH THE GENERAL PLAN AND HOUSING ELEMENT”
Staff Report
A - Draft Ordinance

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PUBLIC HEARINGS - None
Effective January 1, 2023, Government Code Section 65103.5 (SB 1214) limits the distribution of copyrighted material associated with the review of development projects. Members of the public wishing to view plans that cannot otherwise be distributed under SB 1214 may make an appointment with the Planning Division to view them at City Hall by sending an email to [email protected]. Plans will also be made available digitally during the hearing to consider the proposal.

ACTION CALENDAR

7. S
ubject: Baker Tilly Budget Format Review and Performance Measures Updates Recommended Action: Approve recommendations outlined in the recent the Budget Format Review and Performance Measures Updates report as prepared by Baker Tilly Staff Report
A - Budget Document Improvements and Performance Measures Final Report B - Draft Implementation Action Plan

8. Subject: Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25; Budget Modification No. 2425-383, increasing appropriations by $4,161,892 and revenues by $4,115,183.

Recommended Action: 1. A ccept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25

2. Adopt Resolution No. 25-018 approving Budget Modification No. 2425-383, increasing appropriations by $4,161,892 and revenues by $4,115,183.

Staff Report
A - FY 2024-25 Mid-Year Financial Report
B - Draft Resolution
C - Description of Budget Transfers as of December 31, 2024 D - FY 2024-25 Mid-Year Recommended Adjustments
E – Mid-Year Performance Measures & Workload Indicators F – FY 2024-25 Mid-Year Special Projects Update as of December 31, 2024 G - Competitive and Non-Competitive Citywide Grants Tracking H - Capital Improvement Program Project Status

9. Subject: Amendments to the Cupertino City Council Procedures Manual (Continued from February 19, 2025 City Council Meeting)
Recommended Action: Adopt Resolution No. 25-016 amending the Cupertino City Council Procedures Manual
Supplemental Staff Report
Staff Report from February 19, 2025
A – Redline of Cupertino City Council Procedures Manual B – Proposed Resolution

STUDY SESSION
P
age 5
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10. Subject: Study Session on updates to the Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations pertaining to international travel Recommended Action: Study Session to consider, discuss and provide direction on revisions to the Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations pertaining to 1) international travel, including the addition of appropriate prior approvals for travel expenses and staff time away from usual duties at the City, and other related matters, and 2) staff time focused on supporting delegation visits to the City from Sister Cities and Friendship Cities Staff Report
A – 2023 Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations

ITEMS REMOVED FROM THE CONSENT CALENDAR
C

ITY MANAGER REPORT

ORAL COMMUNICATIONS - CONTINUED

COUNCILMEMBER REPORTS

11. Subject: Councilmember Reports
A - Councilmember Report, Fruen
B - Councilmember Report, Mohan
C - Councilmember Report, Moore

FUTURE AGENDA ITEMS
A

DJOURNMENT
Lobbyist Registration and Reporting Requirements: Individuals who influence or attempt to influence l
egislative or administrative action may be required by the City of Cupertino’s lobbying ordinance (Cupertino Municipal Code Chapter 2.100) to register and report lobbying activity. Persons whose communications regarding any legislative or administrative are solely limited to appearing at or submitting testimony for any public meeting held by the City are not required to register as lobbyists.

For more information about the lobbying ordinance, please contact the City Clerk’s Office at 10300 Torre Avenue, Cupertino, CA 95014; telephone (408) 777-3223; email [email protected]; and website: www.cupertino.org/lobbyist.

The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation challenging a final decision of the City Council must be brought within 90 days after a decision is announced unless a shorter time is required by State or Federal law.

Prior to seeking judicial review of any adjudicatory (quasi-judicial) decision, interested persons must file a petition for reconsideration within ten calendar days of the date the City Clerk mails notice of the City’s decision. Reconsideration petitions must comply with the requirements of Cupertino Municipal

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Code §2.08.096. Contact the City Clerk’s office for more information or go to http://www.cupertino.org/cityclerk for a reconsideration petition form.

In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for assistance. In addition, upon request in advance by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format.

Any writings or documents provided to a majority of the Cupertino City Council after publication of the packet will be made available for public inspection in the City Clerk’s Office located at City Hall, 10300 Torre Avenue, Cupertino, California 95014, during normal business hours; and in Council packet archives linked from the agenda/minutes page on the City web site.

IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section

2.08.100 written communications sent to the City Council, Commissioners or staff concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City website and kept in packet archives. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made publicly available on the City website.

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CITY OF CUPERTINO
Agenda Item
25-13628 Agenda Date: 3/4/2025
Agenda #: 1.

Subject: Recognition of March as Youth Art Month
Present proclamation recognizing March as Youth Art Month CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1
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Proclamation
WHEREAS, The City of Cupertino is committed to supporting the arts to inspire and prepare students for success in the 21st century, and to help our youth develop as productive, contributing members of a strong community; and
WHEREAS, Along with the Santa Clara County Office of Education, we share the vision of ensuring that students have access to a high-quality arts education that is culturally relevant and inclusive in all forms as part of a comprehensive education that sparks curiosity, imagination, creativity, and joy; and
WHEREAS, The month of March is recognized as Youth Arts Month in the State of California, and is an annual celebration to emphasize the value of art education for all children while encouraging support for art programs in schools; and
WHEREAS, Arts-learning strategies and arts integration help teachers to recognize and build upon critical thinking skills, curiosity, flexibility, communication, innovation, collaboration, and are traits required for post-secondary and workplace success; and
WHEREAS, Each March, art education is celebrated in local schools, school districts, community arts organizations, and larger communities to increase support, understanding, and interest in art education.

THEREFORE, I, Mayor Liang Chao, and the Cupertino City Council do hereby proclaim the month of March in the City of Cupertino as Youth Arts Month
to support, encourage, and advocate for art education in our local classrooms and to celebrate students’ creativity, inspiration, and joy through artistic expression.

IN WITNESS THEREOF, I have hereunto set my hand and caused the seal of the City of Cupertino to be affixed this Tuesday, March Fourth, Two Thousand and Twenty-Five.

____________________________
The Honorable Liang Chao
Mayor, City of Cupertino

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CITY OF CUPERTINO
Agenda Item
25-13629 Agenda Date: 3/4/2025
Agenda #: 2.

Subject: Recognition of March as American Red Cross Month Present proclamation recognizing March as American Red Cross Month CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1
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Proclamation
WHEREAS, In the City of Cupertino, the American Red Cross has a long history of helping our neighbors in need, as the organization’s dedication has touched millions of lives each year; and WHEREAS, March is American Red Cross Month, a special time to honor the kindness and dedication of Red Cross volunteers and donors who give their time and resources to help families and members of the community; and
WHEREAS, The American Red Cross shelters, feeds, and provides support to victims of disasters; supplies about 40 percent of the nation’s blood; teaches skills that save lives; provides international humanitarian aid; and supports military members and their families; and
WHEREAS, We applaud our heroes here in the City of Cupertino who aid the American Red Cross as they give themselves to assist their neighbors when they need a helping hand; and
WHEREAS, The City of Cupertino dedicates the month of March to all those who give to and support the American Red Cross in its mission to care for people in need and alleviate human suffering in the face of emergencies.

THEREFORE, I, Mayor Liang Chao, and the Cupertino City Council do hereby proclaim the month of March in the City of Cupertino as American Red Cross Month
and encourage citizens of the City of Cupertino and all Americans to support this organization and its noble humanitarian mission.

IN WITNESS THEREOF, I have hereunto set my hand and caused the seal of the City of Cupertino to be affixed this Tuesday, March Fourth, Two Thousand and Twenty-Five.

____________________________
The Honorable Liang Chao
Mayor, City of Cupertino
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CITY OF CUPERTINO
Agenda Item
25-13722 Agenda Date: 3/4/2025
Agenda #: 3.

Subject: Approval of February 12, 2025 City Council minutes Approve the February 12, 2025 City Council minutes
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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Wednesday, February 12, 2025

SPECIAL MEETING

At 6:03 p.m., Mayor Liang Chao called the Special City Council Meeting to order in City Hall Conference Room C, 10300 Torre Avenue , Cupertino, CA 95014 and via teleconference location pursuant to Government Code section 54953(b)(2); Newark Airport, Terminal C, Departures, 3 Brewster Road, Newark Airport, NJ, 07114.

ROLL CALL

Present: Mayor Liang Chao, Vice Mayor Kitty Moore, and Councilmembers J.R. Fruen, Sheila Mohan, and Ray Wang (participated remotely). Absent: None.

In open session prior to closed session, Mayor Chao opened the public comment period regarding the items on the agenda. No members of the public requested to speak and Mayor Chao closed the public comment period.

CLOSED SESSION

1. Subject: Public Employee Employment (Gov’t Code 54957(b)(1)); Title: City Attorney Recruitment

Council conducted the closed session regarding the City Attorney Recruitment.

OPEN SESSION REPORT REGARDING CLOSED SESSION - None

ADJOURNMENT

At 9:55 p.m., Mayor Chao adjourned the Special City Council Meeting.

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City Council Minutes February 12, 2025

Minutes prepared by:

_________________________
Kirsten Squarcia, City Clerk

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CITY OF CUPERTINO
Agenda Item
24-13585 Agenda Date: 3/4/2025
Agenda #: 4.

Subject: Approval of February 19, 2025 City Council minutes Approve the February 19, 2025 City Council minutes
CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1
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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Wednesday, February 19, 2025

SPECIAL MEETING

At 6:45 p.m., Vice Mayor Kitty Moore called the Special City Council Meeting to order and led the Pledge of Allegiance in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue and via teleconference ; and teleconference location pursuant to Government Code section 54953(b)(2); Leeela Gurgagon National Highway 8, Ambience Island, DLF Phase 3, Sector 24, Gurugram, Haryana 122002, India.

ROLL CALL

Present: Mayor Liang Chao (participated remotely), Vice Mayor Kitty Moore, and Councilmembers J.R. Fruen, Sheila Mohan, and Ray Wang (participated remotely). Absent:

None.

CLOSED SESSION REPORT

City Attorney Chris Jensen reported on the closed session held on February 12, 2025. City Attorney Jensen reported that the Council met to consider the appointment of an interim city attorney. Some results from that closed session will be presented in the agenda under Item 12.

There was one reportable action: the Council appointed a subcommittee consisting of Vice Mayor Moore and Councilmember Fruen to negotiate a contract for the Interim City Attorney. The motion was approved by a 3-2 vote, with Fruen and Mohan voting no.

CEREMONIAL ITEMS

1. Subject: Recognition of The Independent Order of Odd Fellows Cupertino Lodge No. 70 (Cupertino Odd Fellows)
Recommended Action: Present proclamation to The Independent Order of Odd Fellows Cupertino Lodge No. 70 (Cupertino Odd Fellows) for its contributions to the community

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Tom Blackburn, Cupertino Odd Fellows Lodge No. 70 Secretary, made comments and received the proclamation.

Vice Mayor Moore presented the proclamation to The Independent Order of Odd Fellows Cupertino Lodge No. 70 (Cupertino Odd Fellows) for its contributions to the community.

PRESENTATIONS

2. Subject: Presentation on Mayor's Initiative(s) regarding Resolution No. 07-103, to be announced at the February 26, 2025 State of the City Address Recommended Action: Receive presentation on Mayor's Initiative(s) regarding Resolution No. 07-103, to be announced at the February 26, 2025 State of the City Address

Mayor Chao gave a presentation on Mayor's Initiative(s) regarding Resolution No. 07-103, to be announced at the February 26, 2025 State of the City Address.

POSTPONEMENTS AND ORDERS OF THE DAY – None

ORAL COMMUNICATIONS

Written communications for this item included emails forwarded by Councilmembers.

The following members of the public spoke:

Jennifer Griffin discussed a Santa Clara County affordable teacher housing project.

Avani Bheemaiah, Avni, Akshita, Raghav, Pragne, and Kelly, representing Project Unlocked for Future Business Leaders of America (FBLA), discussed their survey findings of Cupertino business owners regarding the City’s regulatory environment.

Planning Commissioner Muni Madh dhipatla (representing self) discussed a homeless encampment at De Anza Boulevard and McClellan Road.

Planning Commissioner San R (representing self) discussed Council approvals for fiscal planning, roadway projects, and resident consideration.

Venkat Ranganathan discussed a proposed housing project on Wolfe Road.

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Rhoda Fry discussed the Emergency Manager position vacancy, City spending and revenues, and a project for consideration by the Administrative Hearing Committee.

CONSENT CALENDAR (Items 3-8)

Vice Mayor Moore opened the public comment period and , seeing no one, closed the public comment period.

MOTION: Fruen moved and Mohan seconded to adopt the Consent Calendar as presented. The motion passed with the following vote: Ayes: Chao, Moore, Fruen, Mohan , and Wang. Noes:

None. Abstain: None. Absent: None.

3. Subject: Approval of January 27, 2025 City Council minutes Recommended Action: Approve the January 27, 2025 City Council minutes

4. Subject: Approval of January 28, 2025 City Council minutes Recommended Action: Approve the January 28, 2025 City Council minutes

5. Subject: Approval of February 3, 2025 City Council minutes Recommended Action: Approve the February 3, 2025 City Council minutes

6. Subject: Approval of February 4, 2025 City Council minutes Recommended Action: Approve the February 4, 2025 City Council minutes

7. Subject: Ratifying Accounts Payable for the periods ending January 3, 2025; January 17, 2025; and January 31, 2025
Recommended Action: A. Adopt Resolution No. 25-011 ratifying Accounts Payable for the Period ending January 3, 2025;
B. Adopt Resolution No. 25-012 ratifying Accounts Payable for the Period ending January 17, 2025; and
C. Adopt Resolution No. 25-013 ratifying Accounts Payable for the Period ending January 31, 2025

Written communications for this item included a supplemental report with staff responses to councilmember questions and emails to the Council.

8. Subject: Acceptance of Federal Highway Administration grant, and award of design professional services agreement to Biggs Cardosa Associates, Inc. for a total not-to-exceed contract amount of $625,000 for the Stevens Creek Bridge Repair Project.

Recommended Action: 1. Adopt Resolution No. 25-014 accepting $688,000 in Federal grants from the Federal Highway Administration's Highway Bridge Program for the 18 CC 03-04-2025
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Stevens Creek Bridge Repair Project.

2. Adopt Resolution No. 25-015 approving budget modification #2425-381, approving an increase of Federal grant revenue estimates of $688,000 and an appropriation of $688,000 in the Capital Improvement Program Fund (420-99-267).

3. Authorize the City Manager to award a design professional services agreement with Biggs Cardosa Associates, Inc. in the total not-to-exceed contract amount of $625,000 for the Stevens Creek Bridge Repair Project.

Written communications for this item included a supplemental report with staff responses to councilmember questions and emails to the Council.

PUBLIC HEARINGS

9. Subject: Zoning Map Amendment to correct zoning for Priority Housing Site No. 24 in the 6th Cycle Housing Element (Application No.(s): Z-2024-001, EA-2024-001; Applicant:

City of Cupertino; APN: 359 13 019; Location: 20865 McClellan Road) Recommended Action: That the City Council introduce and conduct the first reading of Ordinance No. 25-2268 titled “An Ordinance of the City Council of the City of Cupertino Correcting the Zoning of a Priority Housing Element Site Located at 20865 McClellan Road From R -3 to R-3/TH to Ensure Consistency with the General Plan And Housing Element” by title only.

Written communications for this item included a supplemental report with staff responses to councilmember questions, staff presentation, and emails to the Council.

Assistant Director of Community Development Luke Connolly gave a presentation.

Councilmembers asked questions and made comments.

Vice Mayor Moore opened the public hearing and the following people spoke.

Ken Bell
Daniel Ying
Yvonne Thorstenson
Jennifer Griffin
Rhoda Fry

Vice Mayor Moore closed the public hearing.

MOTION: Wang moved and Mohan seconded to introduce and conduct the first reading of Ordinance No. 25 -2268 titled, “An Ordinance of the City Council of the City of 19 CC 03-04-2025
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Cupertino Correcting the Zoning of a Priority Housing Element Site Located at 20865 McClellan Road From R -3 to R-3/TH to Ensure Consistency with the General Plan And Housing Element” by title only. The motion passed with the following vote: Ayes: Chao, Moore, Fruen, and Mohan. Noes: Wang. Abstain: None. Absent: None.

At 8:32 p.m., Vice Mayor Moore recessed the meeting. The meeting reconvened at 8:37 p.m. with Councilmember Wang absent.

ACTION CALENDAR

10. Subject: Tyler New World Enterprise Resource Planning (ERP) replacement (Continued from February 4, 2025 City Council meeting)
Recommended Action : Adopt Resolution No. 25 -007 approving Budget Modification No. 2425-380 increasing appropriations in the amount of $3,744,526 in the General Fund Applications Budget unit (100 -32-308 750-237) for the Tyler New World Enterprise Resource Planning (ERP) replacement

Written communications for this item included a supplemental report with staff responses to councilmember questions and emails to the Council.

Chief Technology Officer Teri Gerhardt reviewed the staff report.

Councilmembers asked questions and made comments.

At 8:53 p.m., Vice Mayor Moore recessed the meeting. The meeting reconvened at 9:03 p.m. with all Councilmembers present.

Vice Mayor Moore opened the public comment period and the following people spoke.

San R
Tracy K

Vice Mayor Moore closed the public comment period.

MOTION: Wang moved and Chao seconded to adopt Resolution No. 25 -007 approving Budget Modification No. 2425-380 increasing appropriations in the amount of $3,744,526 in the General Fund Applications Budget unit (100 -32-308 750 -237) for the Tyler New World Enterprise Resource Planning (ERP) replacement.

FRIENDLY AMENDMENT: Wang made a friendly amendment to move forward with the Request for Proposal ( RFP), but not appropriate the budget and use the Technology, Information, and Communications Commission ( TICC) as needed for additional input. 20 CC 03-04-2025
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(Chao accepted the friendly amendment).

The Council did not vote on this motion.

SUBSTITUTE MOTION: Fruen moved and Mohan seconded the staff recommendation to adopt Resolution No. 25 -007 approving Budget Modification No. 2425 -380 increasing appropriations in the amount of $3,744,526 in the General Fund Applications Budget unit (100-32-308 750 -237) for the Tyler New World Enterprise Resource Planning (ERP) replacement. The Council did not vote on this motion.

SECOND S UBSTITUTE MOTION: Chao moved and Wang seconded the staff recommendation as amended to adopt Resolution No. 25 -007 approving Budget Modification No. 2425 -380 increasing appropria tions in the amount of $3,744,526 in the General Fund Applications Budget unit (100 -32-308 750 -237) for the Tyler New World Enterprise Resource Planning (ERP) replacement with an amendment for an amount of $2.5 million dollars for the budget modification.

FRIENDLY AMENDMENT: Fruen made a friendly amendment to include check -ins for Council approval of the final contract and any additional funding (Chao and Wang accepted the friendly amendment).

MODIFICATION: Chao modified the second substitute motion with a potential to increase to $3,744,526 with justification from the RFP that it's clear that there is willingness to need a higher amount (Wang accepted the friendly amendment).

The amended and modified second substitute motion passed with the following vote:

Ayes: Chao, Moore, Fruen, and Wang. Noes: Mohan. Abstain: None. Absent: None.

MOTION: Moore moved and Fruen seconded to extend the meeting to hear agenda Item 12. The motion passed with the following vote: Ayes: Chao, Moore, Mohan, Fruen, and Wang. Noes:

None. Abstain: None. Absent: None.

12. Subject: Appointment of Floy Andrews as City Attorney and approval of contract for City Attorney legal services with Aleshire & Wynder, LLP Recommended Action: Appointment of Floy Andrews as City Attorney and approval of contract for City Attorney legal services with Aleshire & Wynder, LLP

Written communications for this item included a presentation submitted by Aleshire & Wynder.

Vice Mayor Moore introduced the item.

Councilmembers asked questions and made comments.

Vice Mayor Moore opened the public comment period and , seein g no one, closed the 21 CC 03-04-2025
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public comment period.

MOTION: Fruen moved and Moore seconded to appoint Floy Andrews as City Attorney and approve the contract for City Attorney legal services with Aleshire & Wynder, LLP.

The motion passed with the following vote: Ayes: Chao, Moore, Fruen, and Mohan Wang.

Noes: None. Abstain: None. Absent: None.

MOTION: Chao moved and Wang seconded to extend the meeting to hear Item 11 in its entirety.

The motion failed with the following vote: Ayes: Chao and Wang. Noes: Fruen, Mohan , and Moore. Abstain: None. Absent: None.

ADJOURNMENT

At 10:45 p.m. Vice Mayor Moore adjourned the Special City Council meeting. There was no Council discussion on the remaining agenda items.

11. Subject: Amendments to the Cupertino City Council Procedures Manual Recommended Action: Adopt Resolution No. 25-016 amending the Cupertino City Council Procedures Manual

Written communications for this item included a staff presentation , Councilmember Mohan’s comments on Council Procedures Manual revisions, and emails to the Council.

This item was continued to the March 4, 2025 City Council Meeting per rule.

ITEMS REMOVED FROM THE CONSENT CALENDAR – None

CITY MANAGER REPORT

The Council did not hear this item.

ORAL COMMUNICATIONS – CONTINUED – None

COUNCILMEMBER REPORTS

13. Subject: Councilmember Reports

Councilmembers reported on their various committees and events as provided in the published agenda.

FUTURE AGENDA ITEMS
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City Council Minutes February 19, 2025

Page 8 ends

The Council did not hear this item.

Minutes prepared by:

_________________________
Kirsten Squarcia, City Clerk

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CITY OF CUPERTINO
Agenda Item
25-13692 Agenda Date: 3/4/2025
Agenda #: 5.

Subject: Setting a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and for objections to proposed removal through the Cupertino Brush Abatement Program (Wildland-Urban Interface Fire Area); and adopting a resolution declaring properties as having potential fire hazards from brush and authorizing removal
Adopt Resolution No 25-017 declaring properties as having potential fire hazards from brush; and set a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and to hear objections to proposed removal
CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1
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1 CITY COUNCIL STAFF REPORT
Meeting: March 4, 2025

Subject
Consider setting a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and for objections to proposed removal through the Cupertino Brush Abatement Program ( Wildland-Urban Interface Fire Area ); and consider adopting a resolution declaring properties a s having potential f ire hazard s from brush and authorizing removal.

Recommended Action
Adopt Resolution No 2 5-___ declaring properties as having potential fire hazards from brush; and set a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and to hear objections to proposed removal.

Reasons for Recommendation
The Cupertino Brush Abatement Program is a separate program from the County Weed Abatement Program that works to protect the City from wildfire risk by reducing potential fuel, such as brush , for hillside areas . This program is managed by the Santa Clara County Fire Department. Cupertino Municipal Code Section 16.40.200 requires property owners in the locally adopted Wildland -Urban Interface Fire Area (WUI) to maintain effective defensible space by removing brush, flammable vegetation and combustible growth when required by the fire code official due to steepness of terrain or other conditions. All properties in the WUI area are subject to the requirements of the Brush Abatement Program. The Program authorizes the County to remove the brush if the property owner does not and to recover the cost of abatement.

Each year, homeowners are reminded that they must remove brush and vegetation from around their home to comply with the minimum fire safe regulations . On February 14, 2025, County Fire mailed a letter notifying property owners in designated fire hazard severity zones (Attachments B-C).

Fire crews begin conducting property inspections in early April of each year. Properties that are found to be out of compliance with the enforced safety regulations are issued a notice of violation requesting corrections (Attachment D). All properties must comply 25 CC 03-04-2025
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2 before June 1. After June 1, non -compliant properties are referred for mandatory abatement by an assigned County contractor. The costs associated with the abatement work for that parcel are placed on the homeowner’s property tax bill.

To proceed with the annual brush abatement process, staff recommends adopting the draft resolution declaring properties as having potential fire hazards from brush ; and setting a hearing date of June 17, 2025 to declare brush with potential fire hazard a public nuisance and to hear objections to proposed removal (Attachment A). If the resolution is not adopted, the County Fire will be unable to authorize abatement work performed by a contractor on properties that are not in compliance with the vegetation clearance requirements.

Sustainability Impact
There are no sustainability impacts.

Fiscal Impact
There are no fiscal impacts at this step in the process. Any costs associated with the program are charged to property owners, as determined at the lien assessment hearing on June 17 . The City Council holds the hearing, considers any disputes, and adopt s a resolution placing a lien assessment on the properties to allow the County to recover the cost of weed and/or brush abatement.

California Environmental Quality Act
Weed abatement activities are exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15304 (minor alteration to land). _____________________________________
Prepared by: Kirsten Squarcia, City Clerk
Reviewed by: Pamela Wu, City Manager
Attachments:

A - Draft Resolution
B – Property owner 30’ WUI Letter
C - Property owner 100’ WUI Letter
D – Notice of Violation
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RESOLUTION NO. 25-___

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

DECLARING PROPERTIES AS HAVING POTENTIAL FIRE HAZARDS

FROM BRUSH AND SETTING A PUBLIC HEARING TO DECLARE A

PUBLIC NUISANCE AND FOR OBJECTIONS TO PROPOSED REMOVAL

WHEREAS, brush is growing in the City of Cupertino upon certain streets, sidewalks, highways, roads and private property; and

WHEREAS, said brush may attain such growth as to become a fire menace or which are otherwise noxious or dangerous; and

WHEREAS, said brush appears to be a public nuisance;

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino does hereby declare:

1. That said brush does now appear to be a public nuisance and potential fire hazard;

2. That said condition and potential fire hazard exi sts upon all of the streets, sidewalks, highways, roads , and private property more particularly described by common names or by reference to the tract, block, lot, code area, and parcel number on the report to be provided by the Santa Clara County Fire Department;

3. That the 17th day of J une, 202 5, at the hour of 6:45 p.m., or as soon thereafter as the matter can be heard , in the Council Chamber in the Community Hall, City of Cupertino and via teleconference, with details on how to attend the meeting appearing on the City Council agenda for that date, are hereby set as the time and place to determine whether the condition is a public nuisance and where all property owners having any objections to the proposed removal of such brush may be heard;

4. That the San ta Clara County Fire Marshal is hereby designated and ordered as the person to give notice of the adoption of this resolution in the manner and form provided in Section 16.40.200 of the Cupertino Municipal Code.

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Resolution No. 25-

Page 2 ends

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 4th day of March, 2025, by the following vote:

Members of the City Council

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

________
Liang Chao, Mayor
City of Cupertino

________________________
Date
ATTEST:

________
Kirsten Squarcia, City Clerk

________________________
Date

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A. Create 30 feet of defensible space around your home. To accomplish this, you must clear flammable vegetation a minimum of 30 feet around structures.

B. Remove pine needles, leaves, and other dead vegetation from roofs, eaves and rain gutters.

C. Trim tree limbs 10 feet from chimneys and stove pipes; remove dead limbs that hang over rooftops.

D. Remove all non-fire-resistive vegetation a minimum of 10 feet on each side of a fire apparatus access road or driveway.

E. Cover chimney outlets or flues with a 1/2” mesh spark arrester.

F. Post a clearly visible house address, using at least 4” high numbers, for easy identification. For homes located more than 50 feet from the street, post address numbers at the driveway entrance.

Additional Safety Recommendations
• Create and maintain a 5-foot noncombustible zone around all structures, including decks. • Clear 10 feet around and 15 feet above fuels (e.g., woodpiles, lumber, and scrap). Move woodpiles as far away as possible from all structures.
• Clear vegetation and other combustible material from underneath decks. Enclose elevated decks with fire-resistive materials.
• Trees 18 feet or taller should be limbed up 6 feet from the ground. Provide additional vertical clearance when trees have vegetation beneath them.

February 14, 2025
RE: <<Property Address>> / APN: <<APN>>
Dear Property Owner,
National Wildfire Community Preparedness Day will take place on Saturday, May 3rd. Take action to protect your home and community against the threat of wildfire by attending one of several upcoming community wildfire preparedness workshops, see QR code below under the Resources and Information section.

As a property owner in a designated Fire Hazard Severity Zone of the Wildland Urban Interface, you must comply with the minimum fire-safe regulations. Self-inspections are a key component in achieving fire resilience for residents and the community. Included in this letter is a property self-inspection card. Please complete this card and return by mail or online using the provided QR code below under Option 1.

Your property is in a High/Moderate Fire Hazard Severity Zone of the Wildland Urban Interface Area and requires 30 feet of defensible space from all structures. Defensible space is the necessary buffer created around a structure when combustible vegetation is removed or reduced.

The enforced safety regulations for your property include:

Enforced Safety Regulations (Items A - F)

SANTA CLARA COUNTY FIRE DEPARTMENT
ATTN: FIRE PREVENTION DIVISION
1315 DELL AVENUE
CAMPBELL, CA 95008-6609
<<Owner Name>>
<<Owner Address>>
<<Owner City>>, <<Owner State>> <<Owner ZIP Code>>
<<Endorsement Line>>
<<Owner Name>>
<<Owner Address>>
<<Owner City>>, <<Owner State>> <<Owner ZIP Code>>

FFFFFFFFFFFFFFFFFFFF
PLACE
STAMP
HERE
CUPERTINO 30'
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Owner Responsibilities:

1. Please ensure that your property satisfies the listed requirements. You have the option to complete the required work yourself or hire a contractor. For information about vegetation abatement services, visit WeedAbatement.SCCgov.org or call 408.282.3145.

2. Please either complete and return the attached property self-inspection card OR scan the QR Code below (under Option 1) to report the current status of your property before April 1, 2025.

Inspection Schedule:

On April 1, 2025, SCCFD will begin conducting property inspections. Property owners not in compliance will be notified of what work needs to be completed to comply with the Enforced Safety Regulations.

Fourteen (14) days
after the initial and subsequent inspections, we will conduct a re-inspection of the properties that were out of compliance. If your property fails to comply with Items A, B, C, or D of the
Enforced Safety
Regulations specified above, before June 1, 2025
, the compliance work
will be completed
by
the City of
Cupertino's authorized
contractor, and the charges for this service will appear on your
next property tax bill.

If you
would like to
request a courtesy inspection, appointments
will be
available April 1st through
April
15th. To
schedule a courtesy property inspection provided by SCCFD or for more information, please
contact the Fire Prevention Division at [email protected] rg or call 408.341.4420.

Sincerely,
Hector R. Estrada, Deputy Chief
Fire Prevention Division
Choose ONE:

1. Scan the QR code below with a smartphone camera to submit your response online OR

2. Complete and mail the attached information card below.

Evacuation Zone ID:

Private Access Key: Or Online: qrs.ly/syej73x
<<ZoneID>>
<<AccessKey>>
Option 1 - Respond Online
I have received the annual Wildland Urban Interface (WUI) Enforced Safety Regulations letter related to flammable vegetation abatement. The current status of my property is as follows (choose one):
□ I have inspected my property for flammable vegetation clearance and believe it complies with the Enforced Safety Regulations. I understand that an inspection of my property may be conducted to verify compliance. □ I will remove flammable vegetation around all structures on my property in accordance with the Enforced Safety Regulations by the required time-frame. I understand that if the required work is not completed, the authorized contractor will complete the work and the charges will appear on my next property tax bill. □ I am no longer the owner of this property.
□ There are no structures on this property.

Name (print clearly): ____________________________________________________ Date: _________________ Phone: (______)____________________ Email: __________________________________________________ Property Address: <<Property Address>>
Option 2 - Respond by Mail
Resources and Information
California Department of Insurance: www.insurance.ca.gov • 800.927.4357 Provides information about all types of insurance, including insurance coverage and limits for high fire risk areas Santa Clara County FireSafe Council: www.SCCFireSafe.org • 408.975.9591 Protects and educates communities at risk from wildfire through fuel reduction programs, outreach and community planning efforts Santa Clara County Weed Abatement Program: WeedAbatement.SCCgov.org • 408.282.3145 Provides community education and hazard abatement services to protect communities from fire hazards AlertSCC.org
Genasys Protect: Know Your Zone
Visit: protect.genasys.com to view/verify your Evacuation ZONE# Wildfire Preparedness
Workshops & Chipping
Program Information
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A. Create 100 feet of defensible space around your home. To accomplish this, you must clear flammable vegetation a minimum of 30 feet around structures. Additionally, create a reduced fuel zone for the remaining 70 feet (or to the property line).

B. Remove pine needles, leaves, and other dead vegetation from roofs, eaves and rain gutters.

C. Trim tree limbs 10 feet from chimneys and stove pipes; remove dead limbs that hang over rooftops.

D. Remove all non-fire-resistive vegetation a minimum of 10 feet on each side of a fire apparatus access road or driveway.

E. Cover chimney outlets or flues with a 1/2” mesh spark arrester.

F. Post a clearly visible house address, using at least 4” high numbers, for easy identification. For homes located more than 50 feet from the street, post address numbers at the driveway entrance.

February 14, 2025
RE: <<Property
Address>> / APN: <<APN>>
Dear Property Owner,
National Wildfire Community Preparedness Day will take place on Saturday, May 3rd. Take action to protect your home and community against the threat of wildfire by attending one of several upcoming community wildfire preparedness workshops, see QR code below under the Resources and Information section.

As a property owner in a designated Fire Hazard Severity Zone of the Wildland Urban Interface, you must comply
with the minimum fire-safe regulations. Self-inspections are a key component in achieving fire resilience for residents and the community. Included in this letter is a property self-inspection card.

Please complete this card and return by mail or online using the provided QR code below under Option 1.

Your
property is in a Very High Fire Hazard Severity Zone of the Wildland Urban Interface Area and requires 100 feet of defensible space from all structures. Defensible space is the necessary buffer created around a structure when combustible vegetation is removed or reduced. The enforced safety regulations for your property include:

Enforced Safety Regulations (Items A - F)

FFFFFFFFFFFFFFFFFFFF
PLACE
STAMP
HERE
CUPERTINO 100'
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Owner Responsibilities:

2. Please either complete and return the attached property self-inspection card OR scan the QR Code below (under Option 1) to report the current status of your property before April 1, 2025.

Inspection Schedule:

On April 1, 2025, SCCFD will begin conducting property i nspections. Property owners not in compliance will be notified of what work needs to be completed to comply with the Enforced Safety Regulations.

Fourteen (14)
days after the initial and subsequent inspection s, we will conduct a re-inspection of the properties
that were out of compliance. If your property fails to comply with Items A, B, C, or D of the Enforced Safety Regulations specified above, before June 1, 2025, the compliance work will be completed by the City of Cupertino’s authorized contractor, and the charges for this service will appear on your next property tax bill.

If you would
like to request a courtesy inspection, appointments will be available April 1st through April 15th. To schedule a courtesy property inspection provided by SCCFD or for more information, please contact the Fire Prevention Division at [email protected] or call 408.341.4420.

Sincerely
,
Hector R. Estrada, Deputy Chief
Fire Prevention Division
Choose ONE:

1. Scan the QR code below with a smartphone camera to submit your response online OR

2. Complete and mail the attached information card below.

Evacuation Zone ID:

Name (print clearly): ____________________________________________________ Date: _________________ Phone: (______)____________________ Email: __________________________________________________ Property Address: <<Property Address>>
Option 2 - Respond by Mail
Resources and Information
California Department of Insurance: www.insurance.ca.gov • 800.927.4357 Provides information about all types of insurance, including insurance coverage and limits for high fire risk areas Santa Clara County FireSafe Council: www.SCCFireSafe.org • 408.975.9591 Protects and educates communities at risk from wildfire through fuel reduction programs, outreach and community planning efforts Santa Clara County Weed Abatement Program: WeedAbatement.SCCgov.org • 408.282.3145 Provides community education and hazard abatement services to protect communities from fire hazards Genasys Protect: Know Your Zone
Visit protect.genasys.com to view/verify your Evacuation ZONE# Wildfire Preparedness
Workshops & Chipping
Program Information
AlertSCC.org
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<<Date>>

<<Owner Name>>
<<Owner Address>>
<<Owner City>>, <<Owner State>> <<Owner ZIP
Code>> Re: <<APN>> / <<Property Address>>

Dear Property Owner,
Collaborative efforts are key to building fire resilient communities. As a property owner in a designated Fire Hazard Severity Zone of the Wildland Urban Interface (WUI), you play a vital role in keeping both your property and neighborhood safe by complying with the minimum fire safe regulations.

Your property was recently inspected by the Santa Clara County Fire Department on <<Inspection date>>. At that time, the following items were identified to bring your property into compliance with the enforced Wildland Fire Safety Regulations. The noted corrections are listed below:
<<Violations>> <<Inspector comments>>
Please ensure that your property satisfies the requirements above, then call or email the Fire Prevention Division of the Santa Clara County Fire Department at 408.341.4420 or [email protected] to schedule a re-inspection. If your property re-inspection is not scheduled within fourteen (14) days after your initial failed inspection, the Santa Clara County Fire Department will conduct an independent re-inspection of your property to determine compliance status.

You have the option to complete the required work yourself or hire your own contractor. For information about brush and weed abatement services, call 408.282.3145 or visit WeedAbatement.SCCgov.org.

All property’s compliance must be verified through reinspection no later than June 1st, 2025. Properties identified by the Fire Department as being non-compliant with the Wildland Fire Safety Regulations will be referred to your city/town for mandatory abatement. The local authority will make a declaration identifying properties with hazardous conditions and may hold a public hearing. At that time, if your property has been identified as non-compliant, you will be notified. 33 CC 03-04-2025
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CITY OF CUPERTINO
Agenda Item
25-13779 Agenda Date: 3/4/2025
Agenda #: 6.

Subject: Second reading for Zoning Map Amendment to correct zoning for Priority Housing Site No. 24 in the 6th Cycle Housing Element (Application No.(s): Z-2024-001, EA-2024-001; Applicant: City of Cupertino; APN: 359 13 019; Location: 20865 McClellan Road) Conduct the second reading and enact Ordinance No. 25-2268: “AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF CUPERTINO CORRECTING THE ZONING OF A PRIORITY HOUSING ELEMENT SITE LOCATED AT 20865 MCCLELLAN ROAD FROM R-3 TO R-3/TH TO ENSURE CONSISTENCY WITH THE GENERAL PLAN AND HOUSING ELEMENT” CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1
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CITY COUNCIL STAFF REPORT
Meeting: March 4, 2025

Subject
Second reading for Zoning Map Amendment to correct zoning for Priority Housing Site No. 24 in the 6th Cycle Housing Element (Application No.(s): Z-2024-001, EA-2024- 001; Applicant: City of Cupertino; APN: 359 13 019; Location: 20865 McClellan Road) Recommended Action
Conduct the second reading and enact Ordinance No. 25-XXXX: “AN ORDINANCE

OF THE CITY COUNCIL OF THE CITY OF CUPERTINO CORRECTING THE ZONING OF A PRIORITY HOUSING ELEMENT SITE LOCATED AT 20865 MCCLELLAN ROAD FROM R -3 TO R -3/TH TO ENSURE CONSISTENCY WITH THE GENERAL PLAN ANDHOUSING ELEMENT”

Reasons for Recommendation
During a special City Council Meeting held on February 19, 2025, Staff presented text from the City’s General Plan, Housing Element and Municipal Code to support correction of the zoning designation of Priority Housing Element Site no. 24. City Council conducted the first reading for Ordinance No. 25-XXXX on a 4-1 vote (No:

Wang).

If Council approves these changes today, the proposed ordinance will take effect after thirty (30) days on April 3, 2025.

Sustainability Impact
None.

Fiscal Impact
None.

City Work Program (CWP) Item
Housing Element Update.
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CWP Item Description
Update Housing Element and complete rezoning. General Plan updates and EIR by December 2023.

Council Goal
Housing
California Environmental Quality Act (CEQA)
Due to a settlement agreement the City entered into to settle a lawsuit related to the Housing Element, any actions that the City takes to adopt a compliant housing element, including rezoning actions to implement the Housing Element, are exempt from the California Environmental Quality Act (CEQA) pursuant to Government Code Section 65759 et seq. Additionally, since there is no increase to the permitted density on the site with this rezoning action, there are no environmental impacts anticipated pursuant to Government Code section 15061(b)(3).

Prepared by: Piu Ghosh, Planning Manager
Luke Connolly, Assistant Director of Community Development Reviewed by: Benjamin Fu, Community Development Director Approved for Submission by: Pamela Wu, City Manager

Attachments:

A – Draft Ordinance No. 24-2254
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ORDINANCE NO. 25 –

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF CUPERTINO CORRECTING THE ZONING OF A
PRIORITY HOUSING ELEMENT SITE LOCATED AT 20865 MCCLELLAN ROAD FROM R-3 TO R-3/TH TO ENSURE CONSISTENCY WITH THE

GENERAL PLAN ANDHOUSING ELEMENT

SECTION I: PROJECT DESCRIPTION
Application No: Z-2024-001
Applicant: City of Cupertino
Location: 359 13 019 (20865 McClellan Rd)
SECTION II: RECITALS
WHEREAS, state law requires the City to prepare and adopt an updated Housing Element every eight years to accommodate its fair share of housing and identify housing needs, resources and opportunities;
WHEREAS, pursuant to State Housing Law, the City prepared and presented a draft 6 th Cycle Housing Element to the California Department of Housing and Community Development (HCD) on March 28, 2024,
WHEREAS, HCD informed the City in a letter dated April 10, 2024 that the proposed Draft Housing Element is conditionally certified, pending rezoning of the Priority Housing Sites, and any associated rezoning required, to accommodate the City’s Regional Housing Needs Allocation (RHNA); and
WHEREAS, pursuant to State Housing Law, the City Council adopted the City’s 6th Cycle Housing Element on May 14, 2024 with Resolution 24-039; and WHEREAS, the Zoning map and Municipal C ode were both amended on July 2, 2024, with a second reading on July 16, 2024 to rezone the Priority Housing Element sites to be consistent with the City's General Plan land use map; and WHEREAS, the City has received a letter dated September 4, 2024 that the adopted Housing Element is certified by the Department of Housing and Community Development;
WHEREAS, the site located at 20865 McClellan Road was part of the rezoning completed to achieve Housing Element compliance and while contemplated to be developed with 37 CC 03-04-2025
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townhomes in the text of the Housing Element, the rezoning indicated in the Housing Element inadvertently limited development on the site to multi-family housing (R-3); WHEREAS, the City wants to correct this error to ensure internal inconsistency between the General Plan and zoning and allow the development of townhomes as contemplated in the Housing Element and desired by the property owner; WHEREAS, all necessary public notices have been given as required by the Municipal Code of the City of Cupertino and the Government Code for meetings with the Planning Commission and the City Council; and
WHEREAS, the Planning Commission at its duly noticed regular meeting on De cember 10, 2024 recommended approval of the proposed correction to the Zoning Map with a 3- 2 vote (Madhdhipatla and Scharf: No); and
WHEREAS, the City Council of the City of Cupertino held a duly noticed public hearing on February 4, 2025, and after considering all testimony and written materials provided in connection with that hearing introduced this ordinance and waived the reading thereof; and
WHEREAS, the City Council of the City of Cupertino is the decision -making body for this Ordinance;
WHEREAS, the City entered into a Stipulated Judgement dated January 8, 2024 pursuant to a lawsuit related to adoption of the Housing Element which included requirements for coming into compliance with state housing element law and exempted the City from the California Environmental Quality Act (“CEQA”) pursuant to Government Code section 65759; and
WHEREAS, pursuant to Government Code 65759, the General Plan Amendment to adopt the Housing Element and associated amendments to the General Plan and zoning is fully described and analyzed in the Environmental Assessment, which is incorporated into the General Plan as Appendix G;
WHEREAS, the City Council finds the following:

1. That the proposed zoning is in accord with the Municipal Code and the City's Comprehensive General Plan.

The proposed zoning is in conformance with the General Plan since the City Council adopted amendments to the General Plan, including changes to land use designations, in May 2024 with adoption of the Housing Element. The text in the Housing Element clearly indicates that townhome development is anticipated and desired by the interested developer for this site since 2021. This change is a mere conforming change to the zoning designation to make the City’s zoning map conform to the text in the Housing Element of the General Plan. 38 CC 03-04-2025
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2. The proposed zoning is in compliance with the provisions of the California Environmental Quality Act (CEQA).

Pursuant to Govt. Code Section 65759, the zoning actions related to bringing the City’s Housing Element, including any associated rezoning, into compliance with state law are exempt from CEQA. An Environmental Assessment was prepared, also in compliance with state law. This Environmental Assessment identified all feasible mitigation measures and was adopted as Appendix G – General Plan 2040 and Zoning Code Amendments Environmental Assessment of the General Plan as required by state law.

3. The site is physically suitable (including, but not limited to, access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the proposed zoning designation and anticipated land use development.

The site being rezoned has access to utilities and is compatible with adjoining land uses as previously anticipated with adoption of the Housing Element of the General Plan.

4. The proposed zoning will promote orderly development of the City.

The proposed zoning aligns zoning with the City’s Housing Element and General Plan land use goals and policies related to locating higher density development close to transit corridors and employment centers (De Anza College, Apple etc.). The sites being rezoned will promote orderly development in the City by allowing similar land uses to be located compatibly as contemplated in the Housing Element text. The proposed changes also allow the City to comply with the requirements of state law related to housing.

5. That the proposed zoning is not detrimental to the health, safety, peace, morals and general welfare of persons residing or working in the neighborhood of subject parcels.

The proposed zoning is not detrimental to the health, safety, peace, morals and general welfare since these are conforming changes. Additionally, where health or safety impacts have been identified mitigation measures have been identified which would be applicable to any development on these sites, including those implemented through the City’s existing Municipal Code requirements.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES ORDAIN AS FOLLOWS:

Section 1. Rezoning.

That the property described herein has a zoning designation as shown in the following table and in Exhibit Z -1, and is incorporated into the Master Zoning Map of the City of Cupertino:

APN Acres Existing Zoning Designation New Zoning
359 13 019 0.99 R3 R3/TH
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Section 2. Severability and Continuity.

The City Council declares that each section, sub -section, paragraph, sub -paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub -section, paragraph, sub -paragraph, sentence, clause and phrase of this ordinance. If any section, sub -section, paragraph, sub -paragraph, sentence, clause or phrase of this ordinance is held invalid, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, the City Council declares that it would have adopted the remaining provisions of this ordinance irrespective of such portion, and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. To the extent the provisions of this Ordinance are substantially the same as previous provisions of the Cupertino M unicipal Code, these provisions shall be construed as continuations of those provisions and not as an amendment to or readoption of the earlier provisions.

Section 3. California Environmental Quality Act.

Adoption of these zoning amendments to allow implementation of the Housing Element is exempted from the California Environmental Quality Act (“CEQA”) pursuant to Government Code section 65759.

Section 4: Effective Date.

This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937.

SECTION 5: Publication.

The City Clerk shall give notice of adoption of this Ordinance as required by law.

Pursuant to Government Code Section 36933, a summary of this Ordinance may be prepared by the City Clerk and publishe d in lieu of publication of the entire text. The City Clerk shall post in the office of the City Clerk a certified copy of the full text of the Ordinance listing the names of the City Council members voting for and against the ordinance.

INTRODUCED at a special meeting of the Cupertino City Council on February 19, 2025 and ENACTED at a regular meeting of the Cupertino City Council on March 4, 2025 by the following vote:

Members of the City Council
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AYES: CHAO, MOORE, MOHAN, FRUEN
NOES: WANG
ABSENT:

ABSTAIN:

SIGNED:

Liang Chao, Mayor
City of Cupertino

Date
ATTEST:

Kirsten Squarcia, City Clerk

Date
APPROVED AS TO FORM:

City Attorney

Date

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EXHIBIT Z-1

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CITY OF CUPERTINO
Agenda Item
25-13761 Agenda Date: 3/4/2025
Agenda #: 7.

Subject: Baker Tilly Budget Format Review and Performance Measures Updates Approve recommendations outlined in the recent the Budget Format Review and Performance Measures Updates report as prepared by Baker Tilly
CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1
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CITY COUNCIL STAFF REPORT
Meeting: March 4, 2025

Subject
Baker Tilly Budget Format Review and Performance Measures Updates

Recommended Action
Approve recommendations outlined in the Budget Format Review and Performance Measures Updates report as prepared by Baker Tilly

Reasons for Recommendation
Background
Historically and as good practice, major changes to its current budget document and budget format have been presented to the City Council for their review and feedback.

Most recently, the City Council approved major changes to the FY14 and FY15 budget documents and its format such as organizational changes, budgeting philosophy, cost allocation and internal service fund changes, added new financial policies, and updated program narratives/format changes. For further details on these changes, please see the FY 2013-14 Adopted Budget pages 9-17 and FY 2014-15 Adopted Budget pages 8-10.

During the last round of budget preparation for FY 2024-25 review, feedback received on the budget document from City Council, residents and City staff from budget sessions, community outreach and internal budget meetings , and the City’s internal auditors suggested the need to improve and streaml ine the annual budget. That feedback also indicated a need to reassess the City's Performance Measures to focus on outcomes that reflect the City’s priorities rather than workload indicators.

In Fall 2024, the City engaged Baker Tilly US, LLP to conduct a comprehensive review of its Budget Document and Performance Measures. The primary objective of this engagement is to enhance clarity, accessibility, and to strategically align the City's annual budget document and to improve the effectiveness of performance measures in tracking progress toward key citywide goals.

The project was divided into two phases:

 Budget Document Review
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 Performance Measures Assessment

The final report is included as Attachment A of this report.

Audit Committee Review
Subsequent to the publication of the final report, the Audit Committee reviewed and provided feedback on the proposed recommendations at its February 18th meeting. The Audit Committee also voted unanimously to accept the report. They also requested the following be included in the staff report to City Council:

 Pilot the recommended budget format for FY26-27 for feedback from City Council or through an Audit Committee Budget format s ubcommittee regarding the proposed format
 Connect the CIP with the budget book (include graphs)  Maintaining detail availability as an appendix
 Ensuring original budget (point-in-time) is easily accessible  Reviewing performance measures to reflect focus areas like economic development
 Graphical presentation of numbers to support a narrative description  Hyperlink to policies within the budget book
o Summarized policy – key point of what the policy does o Attachment to an agenda item for all policies includ ing redline, new, or amended policies within the budget book that are provided to City Council with a staff report
 Internal Audit functions and responsibilities to be considered for budget presentation to the City Council

Next Steps
Following Council’s approval , staff will review the draft implementation action plan (Attachment B) and include a final implementation action plan as part of the proposed budget. Any budget format changes would first be presented to the Audit Committee as budget format falls under the Committee’s responsibilities.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact to the General Fund. Funding for this work was $89,900 through salary savings from the current Budget Manager vacancy in budget unit 100-41-426.

City Work Program (CWP) Item:

No.

CWP Item Description:
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Not applicable.

Council Goal:

Public Engagement and Transparency
Sustainability and Fiscal Strategy

California Environmental Quality Act
Not applicable.
_____________________________________

Prepared by: Toni Oasay-Anderson, Senior Management Analyst Reviewed by: Kristina Alfaro, Director of Administrative Services Tina Kapoor, Deputy City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:

A – Budget Document and Performance Measures Improvements Final Report B – Draft Implementation Action Plan

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February 2025

City of Cupertino
Budget Document and Performance Measures Improvements
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Baker Tilly US, LLP
2055 Gateway Place
Suite 140
San Jose, CA 95110
United States of America

T: +1 (408) 625 5100
F: +1 (408) 625 5125

bakertilly.com

February 12, 2025

Ms. Pamela Wu, City Manager
Ms. Kristina Alfaro, Director of Administrative Services City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014

Dear Ms. Wu and Ms. Alfaro:

Baker Tilly is pleased to present our report resulting from our analysis of the City of Cupertino’s current budget document and the performance measures upon which City services are evaluated. The budget document is one of the most critical policy documents that reflect the priorities of the City in the provision of services to the community. The ability to tell the story regarding those priorities and the allocation of resources that the community has entrusted to City leaders to spend wisely is critical to informing the City Council’s policy priorities and provision of resources to achieve those goals.

We have identified 32 recommendations for change and improvement in the City’s budget document, related processes, and a set of performance measures that better reflect the success in providing services to the community and its stakeholders.

We look forward to presenting this report to the City’s Audit Committee and, ultimately, the City Council.

Sincerely,

Carol Jacobs, Managing Director
+1 (949) 809 5588 | [email protected]

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i
Table of Contents
Executive Summary .................................................................................................................................. 2 Key Observations ............................................................................................................................. 2 Key Recommendations .................................................................................................................... 3 Project Introduction .................................................................................................................................. 4 Project Approach .............................................................................................................................. 4 Methodology ..................................................................................................................................... 4 Guiding Principles ........................................................................................................................... 5 Report Content ................................................................................................................................. 7 Budget Document ..................................................................................................................................... 8 Budget Document Interview Themes ............................................................................................ 8 Interview Themes - City Councilmembers ................................................................................. 8 Interview Themes- City Staff ...................................................................................................... 9 Key Takeaways from Interviews ............................................................................................... 10 Current Budget Document Review and Analysis ..................................................................... 10 Comparative Research ................................................................................................................... 12 Budget Document Observations and Recommendations ........................................................ 14 Budget Formatting .................................................................................................................... 14 Budget Message ........................................................................................................................ 14 Budget Guide ............................................................................................................................ 16 Community Profile ................................................................................................................... 16 Financial Policies ...................................................................................................................... 16 All Funds Financial Schedules ................................................................................................. 17 General Fund Financial Schedules ........................................................................................... 17 Department Sections ................................................................................................................. 18 Capital Budget/Capital Improvement Plan .............................................................................. 19 Other Budget-Related Matters ................................................................................................. 21 Recommended Document Framework (Table of Contents) .................................................... 23 Performance Measures ........................................................................................................................... 30 Performance Measures Interview Themes ................................................................................. 30 Interview Themes – Council ..................................................................................................... 30 Interview Themes – Staff .......................................................................................................... 30 Key Takeaways .......................................................................................................................... 31 Current Performance Measures Review and Analysis ............................................................. 31 Performance Measures Observations and Recommendations ................................................ 32 Performance Measures vs. Workload Indicators ...................................................................... 32 49 CC 03-04-2025
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ii
Strategic Planning .................................................................................................................... 34 Recommended Performance Measures ....................................................................................... 37 Conclusion ................................................................................................................................................ 45 Attachment A – List of Recommendations ......................................................................................... 46

Table of Contents - Tables
Table 1. Defining Guiding Principles in Local Government Budgeting and Performance Measurement ............................................................................................................ 6 Table 2. Shared Themes on Budget Document from City Councilmembers and Staff ........ 10 Table 3. Components of the Budget Document ............................................................................ 12 Table 4. Performance Measures Versus Workload Indicators ................................................... 33 Table 5. Suggested Performance Measures ................................................................................... 37

Table of Contents - Figures
Figure 1. Guiding Principles in Local Government Budgeting and Performance Measurement ............................................................................................................ 6 Figure 2. Strategic Planning Framework ..................................................................................... 36

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2 Executive Summary
The City of Cupertino engaged Baker Tilly US, LLP to conduct a comprehensive review of its budget document and performance measures. The primary objective of this engagement was to enhance the clarity, accessibility, and strategic alignment of the City's annual budget document and to improve the effectiveness of performance measures in tracking progress toward key citywide goals.

The project was divided into two distinct phases:

1. Budget Document Review: This phase focused on assessing the structure and content of Cupertino’s existing budget document. While Cupertino has a history of producing award-winning budgets, opportunities exist to refine the document to improve readability, transparency, and accessibility for a wider range of stakeholders, including elected officials, community members, and non-financial professionals.

2. Performance Measures Assessment: The second phase involved evaluating Cupertino’s current performance measures and workload indicators. Many existing measures were developed several years ago and no longer align with the City’s evolving priorities and strategic objectives. The project sought to establish a robust framework for performance measurement that reflects current service delivery priorities, fosters accountability, and supports continuous improvement.

Our approach included reviewing key city documents including the budget document, performance measure data, and strategic goals of the City. We conducted interviews with City Councilmembers and staff across multiple departments, and conducted comparative research with peer cities to identify best practices and potential improvements.

Key Observations
Our analysis identified several key themes related to both the budget document and performance measures:
• Budget Document Challenges: Stakeholders noted that the budget document is highly detailed but difficult to navigate, leading to underutilization. Complex financial terminology and inconsistent formatting further hinder accessibility. • Performance Measurement Gaps: Existing performance measures lack alignment with strategic goals, are inconsistently applied across departments, and often focus on workload indicators rather than true performance outcomes. • Capital Improvement Plan (CIP) Integration: The absence of a dedicated and consistently published CIP document limits transparency in capital project planning and funding.
• Public Engagement: The City’s budget process includes limited direct engagement with community members outside of Council meetings and publication of various budget reports and materials, reducing opportunities for public input and education. 51 CC 03-04-2025
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3 • Strategic Planning Alignment: The City's budgeting process and performance measures lack a comprehensive citywide strategic plan upon which they should be based, creating a disconnect between resource allocation and long-term priorities.

Key Recommendations
Based on our findings, we recommend the following actions to improve Cupertino’s budget document and performance measurement framework:
• Refine the Budget Document Structure: Implement a more intuitive layout, including a clearer table of contents, a standalone budget message, and an elevated Budget Overview section.
• Improve Budget Transparency and Accessibility: Condense complex financial terminology, move non-essential sections to an appendix, and leverage OpenGov for detailed budget data.
• Streamline Departmental Budget Presentations: Standardize departmental sections to include key priorities, performance measures, and financial summaries. • Enhance Capital Improvement Plan (CIP) Reporting: Develop a five-year CIP document integrated into the annual budget and assign clear roles for its preparation and publication.
• Increase Public Engagement: Expand community outreach efforts, review efficacy of educational materials explaining budget priorities, and explore additional interactive budget tools for greater accessibility.
• Integrate Strategic Planning into Budgeting: Establish a structured strategic planning framework to ensure that budget allocations align with citywide priorities and performance tracking is consistent across departments.
• Revamp Performance Measures: Align performance measures with the City’s strategic goals, differentiate between workload indicators and true performance metrics, and standardize the reporting process.

By implementing these recommendations, Cupertino can create a budget document that is not only more user-friendly and transparent but also a more effective tool for decision-making and accountability. Additionally, refining performance measures will provide meaningful insights into service delivery and help track the City’s progress in achieving its strategic vision. 52 CC 03-04-2025
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4 Project Introduction

Project Approach
The City of Cupertino ("Cupertino" or "the City") has engaged Baker Tilly US, LLP (“Baker Tilly”) to review the City’s current budget document and performance measures. The goal of this project is to help the City enhance its annual budget document and performance measures to ensure they are meaningful, accessible, and insightful for all stakeholders.

The project is divided into two phases. Phase 1 focuses on reviewing the structure and content of the budget document. Cupertino has a strong history of producing award-winning budgets.

Yet there is a need for more relevant, clear, and easily understandable budget document that can be accessed by a broader audience. Specifically, the challenge is to provide elected officials, community stakeholders, and non-financial professionals with a budget document that helps them understand how the City allocates and invests resources to achieve its highest priorities.

Phase 1 aims to revamp the structure and content of the City’s budget document to help increase transparency and accessibility.

Phase 2 shifts focus on Cupertino's current performance measures and workload indicators. The existing performance measures, developed several years ago, no longer align with the City’s evolving priorities and strategic objectives. With recent shifts in development activity, service delivery, and the City's strategic goals, there is a need to revisit and update these measures.

Phase 2 aims to bridge the gap between outdated metrics and the City’s evolving priorities, ensuring that the new performance measures reflect current goals and foster continuous improvement and accountability. The ultimate objective is to develop a set of robust, dynamic performance measures that accurately track the City's progress in achieving its strategic vision.

Methodology
To achieve the goals of this project, Baker Tilly requested and reviewed data provided by City staff. The following serves as a summary of the data we reviewed the following resources:
• Current and prior year budgets,
• Performance measure information,
• Budget process and timeline,
• Budget award documentation,
• OpenGov portal,
• Cupertino budget website, and
• City Council strategic goals.

The data received was used to facilitate interviews with City Councilmembers and staff. Baker Tilly consultants interviewed the following participants:
• Mayor, Vice-Mayor and three Councilmembers,
• Nine staff members from the following departments:
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5 o City Manager’s Office,
o Administrative Services,
o Public Works,
o Parks and Recreation,
o Innovation and Technology, and
o Community Development.

Each provided unique insights into both the budget document and current performance measures as shown below. These activities offered a detailed understanding of how current budget practices intersect with the city’s broader objectives.

Guiding Principles
Local governments use the budget process to distribute limited resources among various programs and services, making it one of their most critical functions. As the centerpiece of resource allocation decisions, the budget process culminates in the adopted budget document, which serves as a powerful decision-making tool. The effectiveness and acceptance of these decisions depend heavily on the structure and characteristics of the budgeting process itself.

When the budget process and its outcomes are closely aligned with other government functions, such as strategic planning and operational management, they lead to more informed financial and programmatic decisions, ultimately enhancing government performance. An inclusive budgeting approach that actively engages stakeholders—including elected officials, administrators, employees and their representatives, community organizations, and business leaders—ensures that diverse needs and priorities are reflected. This approach fosters positive public relations and strengthens trust and confidence in government among citizens and other stakeholders.

Best practices in local government budgeting and measuring performance suggest a series of guiding principles to provide meaningful information that informs the allocation of fiscal resources to accomplish the agency’s objectives. The overarching principles guiding this assessment focus on five essential areas that are foundational to improving the current budget document and performance measures, displayed in Figure 1. 54 CC 03-04-2025
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6 Figure 1. Guiding Principles in Local Government Budgeting and Performance Measurement

Each is summarized in Table 1 below.

Table 1. D efining Guiding Principles in Local Government Budgeting and Performance Measurement Guiding Principle Definition
Strategic
Alignment
• Clearly reflect how the city’s resources, initiatives, and policies are aligned with long- term vision and goals.
• Strategic objectives integrated into the budget
• Demonstrate a purposeful allocation of resources supporting future growth and sustainability
• Performance measures track progress toward strategic goals, allowing for more informed adjustments in future planning cycles
Fiscal
Stewardship
• Demonstrate responsible management of public funds
• Highlight efforts to maximize value of taxpayer dollars while maintaining financial stability
• Performance measures track key fiscal metrics to ensure effectively use of City funds , identify potential inefficiencies, and make necessary improvements to support essential programs and services
Community
Engagement
• Collaboration with community stakeholders fosters transparency, builds trust, and empowers residents to take an active role in shaping the city’s future • Leads to better alignment with community-driven goals Transparency • Provide clear, accessible information about the city’s financial resources • Clarify and communicate decision-making processes
• Demonstrate how funds are allocated across departments and initiatives Budget and
Performance
Measures
Strategic
alignment
Fiscal
stewardship
Community
engagement
Transparency
Accessibility
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7 • Performance measures track and report progress toward specific goals, providing transparency in how the city is meeting its objectives
Accessibility • Ensures that the budget and performance measures are understandable and accessible to all stakeholders.
• Presents financial information in a clear, user-friendly format • Uses plain language and visual aids to make complex data more digestible • Performance measures include clear metrics that allow residents, community groups, and decision-makers to easily track the city’s progress toward its goals Together, these principles form a comprehensive framework for updating the budget document to align with these goals, ensuring that the city’s financial planning and resource allocation support its long-term vision and foster transparency.

Report Content
This report includes the following sections that discuss the results of our data gathering and interviews, common themes, our independent analysis and recommendations, • Budget Document – This section is focused on our observations, analysis and recommendations to improve the budget document reflective of the guiding principles discussed earlier. This section includes:
o Interview Themes – an overview of what we heard from our interviews with City Councilmembers and staff
o Review and Analysis – a summary of our analysis of the data and documents reviewed
o Comparative Research – the results of our review of various budget documents of comparable agencies in Santa Clara County and the region o Observations and Recommendations – a summary of our analysis and recommendations to improve the budget document
o Recommended Budget Document Framework – a summary of our recommendations in the form of a proposed table of contents with descriptions for the proposed new format of the budget document.
• Performance Measures – This section is focused on our observations and recommendations to develop performance measures that are reflective of the City’s top priorities as they are known today. This section includes:
o Interview Themes – an overview of what we heard from our interviews with City Councilmembers and staff
o Review and Analysis – a summary of our analysis of the data and documents reviewed
o Observations and Recommendations – a summary of our analysis and recommendations of performance measures to be considered for inclusion in a revised budget document and to track and report on during the fiscal year. o Recommended Performance Measures – a list of proposed new performance measures.
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8 Budget Document
Budget Document Interview Themes
As mentioned earlier, we conducted individual interviews with all City Councilmembers and nine staff members. The following represents the themes we heard as part of our interview of each group, respectively.

Interview Themes - City Councilmembers
The common themes regarding the budget document from council interviews is summarized in the following five themes:

1. Transparency and Accessibility
a. The "Budget at a Glance" document and departmental summaries provide an accessible overview of the City's financial plan, highlighting key allocations and priorities.
b. The budget document frequently uses complex financial terms that are difficult for the reader to understand.
c. City staff always make themselves available to answer questions and provide clarification and was consistently noted as a positive aspect.

2. Clarity and Presentation
a. The introduction section is perceived as too lengthy. b. Layout issues, such as the use of portrait versus landscape orientation and the absence of a title page, have been noted as affecting readability. c. The table of contents appears to need refinement to enhance navigability. A more clearly structured and detailed table would help readers easily locate relevant sections within the document.

3. Capital Improvement Projects (CIP)
a. The CIP projects cause confusion, especially regarding how they are prioritized and how their funding overlaps with other programs.
b. There is a lack of cohesiveness between the operating and capital budgets c. There is limited visibility into fund transfers, consulting services, and community grant funding, making it harder to fully understand resource allocation.

4. Data and Accountability
a. Insufficient tracking of special project carryovers and enterprise fund allocations raises concerns about accountability.
b. Some budgetary elements, such as contingencies and extended library hours, are viewed as unnecessary "bloat."
c. Revenue projections are perceived as overstated, and cash management practices seem to be underutilized.

5. Engagement and Strategy
a. The budget’s role as a planning document is not clear. 57 CC 03-04-2025
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9 b. The budget does not adequately reflect Council priorities or provide a clear strategic plan.
c. Simplifications, such as the "Budget in Brief," are seen as overly reductive.

Interview Themes- City Staff
The common themes regarding the budget document and its preparation from staff interviews is summarized into the following six themes:

1. Detail, Transparency and Usability
a. The budget document is extremely detailed, reflecting the City Council priority for transparency.
b. The "Budget at a Glance" section, City Manager’s budget message and departmental summaries are helpful for informing the public. c. Although OpenGov is a valuable resource for accessing budget information, finance staff are readily available to clarify and provide additional detail on budget to council members and staff as needed.
d. While some departments find the detailed program-level information necessary, others feel overwhelmed by the volume of content.
e. The document’s size and complexity lead to confusion and underutilization by many staff and stakeholders.
f. Definitions and explanations can be simplified to help explain complex financial topics in layman’s terms.

2. Communication and Process Challenges
a. The budget process is effectively communicated internally, but time constraints hinder thorough review and input from departments.
b. Additional requests from Administrative Services, councilmembers, or administration add pressure and exacerbate time limitations.

3. Document Accessibility and Navigation
a. Finance staff can navigate the document but recognize that others may struggle to utilize it effectively.
b. The budget message is seen as overly lengthy and redundant, contributing to user frustration.

4. Technology and Tools
a. Departments find OpenGov challenging to use but believe training and layout improvements could make it a more effective tool for presenting the budget.

5. Connection to Capital Improvement Projects (CIP)
a. There is city-wide confusion about why the CIP budget is not integrated into the departmental sections of the budget document.
b. The CIP projects cause confusion, particularly regarding prioritization and funding overlaps with other programs.

6. Relevance and Usage
a. The document is infrequently used by staff and becomes outdated as soon as the fiscal year begins.
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10 Key Takeaways from Interviews
Our interviews of Council and staff members identified several commonalities that should be highlighted. They are presented in Table 2 below.

Table 2. S hared Themes on Budget Document from City Councilmembers and Staff Common Theme Description
Transparency
and Accessibility
• Council and staff acknowledge the importance of transparency, with positive mentions of tools like the "Budget at a Glance" and the availability of City staff to clarify questions
• Most also find the budget document overwhelming or too complex, suggesting a need for a focused simplification of explanations of financial terms and processes Strategic
Alignment
• Both groups note a lack of strategic alignment with City priorities, in part due to the lack of a citywide strategic plan
Clarity and
Presentation
• Both groups raise concerns about the document’s readability and navigability • There is also agreement that certain sections, such as the introduction and budget message, are overly lengthy, negatively impacting their utility • Both groups observe that the budget is not user-friendly for all stakeholders Capital
Improvement
Projects
• Council and staff identify significant confusion regarding Capital Improvement Plan (CIP) prioritization, funding overlaps, and its lack of integration with the operating budget
• They also both highlight a lack of visibility into specific resource allocations within the CIP, such as funding sources and fund transfers
Data and
Accountability
• Understanding that the budget is a planning document for allocation of resources, both groups mention challenges with deciphering or tracking financial details, such as enterprise fund allocations and the status and origination of City work programs completed or underway in the prior budget cycle that may influence budgetary carryover needs in the current budget year
• Councilmembers and staff also agree on the need for clarity in terms of revenue projections and how any dedicated revenue sources were allocated

By addressing these shared concerns, the City can improve the budget document's utility and alignment with stakeholder needs.

Current Budget Document Review and Analysis
We reviewed the current and past two years of budget documents, focusing on the latest FY 2025 adopted budget document. We also reviewed all of the other information provided to us as indicated earlier, including the OpenGov portal used by staff, Council and the community.

Based on our understanding of Cupertino’s needs, using the guiding principles as a reference point, and our years of experience in developing and working with local government budgets in California and across the country, our initial observations about the budget document and its preparation are summarized into the following four themes:
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11 1. Budget Document Structure:
a. The document is redundant and includes repeated information in the five-year forecast, budget message, and notable accomplishments section. b. The document lacks a clear definition of its purpose, leading to the inclusion of financial data not typically found in a budget.
c. The Budget’s role as a planning document is not clear. d. Additions to the document, driven by City Council requests over the years, have been made without evaluating the overall structure.

2. Components of the Budget Document:
a. The CIP is not part of the budget document and is handled separately by Public Works.
b. The "Budget in Brief" for FY 2024-25 has been completed, but not yet published as of the date of this report.

3. Program and Department Information:
a. Although the City Work Program is tied to Council priorities, the projects are not aligned with the specific departments responsible for carrying out the projects. b. The City Work Program and Special Projects sections are confusing, with no clear distinction between them.
c. Insufficient tracking of special project carryovers and enterprise fund allocations raises questions about accountability.
d. Department write-ups go into excessive program-level detail. e. Personnel by department is repeated multiple times throughout the document. f. The General Fund and other restricted funds are presented as totals, with no breakdown by individual fund.

4. Tools Readily Available to Improve Accessibility:
a. OpenGov could serve as an alternative for users who need additional detail, reducing the need for excessive information in the document itself.

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12 Comparative Research
Comparative research provides a perspective to help understand how functions are budgeted, staffed and organized in similar settings. This type of research informs discussions by organizational leaders about service level alignment and can often surface opportunities for improvement.

We conducted a review of budget documents from cities within the region. We researched various components of their budget document. The components we researched included the following:
• Frequency – annual or biennial budgets
• Pages – total number of pages in the document
• Budget presentation level – whether by department, program, or other • CIP – whether the CIP plan is included in the overall budget document • Budget in brief – whether a budget in brief document is also produced • Online – the extent to which the budget is online and interactive • Hard copy – whether the agency produces a hard copy version of their budget that is available online • GFOA award – whether the agency submitted and received a GFOA award of achievement • CSMFO award – whether the agency submitted and received a CSMFO award of achievement

Working with staff, and referencing input received from the City Council during their interviews, we identified nine cities to which to compare. These cities are similar in terms of population, size and geographic location. Table 3 summarizes the various aspects of their budget documents.

Table 3. C
omponents of the Budget Document

City Frequency Pages
Budget Level
(Dept, Division or
Program) CIP Included
Budget in
Brief
Y/N
Online
Interactive
Budget
Hard
Copy
Budget GFOA Award CSMFO Award
Cupertino Annual 650 Program Separate Yes Yes Yes Yes Yes Campbell Annual 762 Department - Fund Included No No Yes Yes Yes Los Altos Annual 181 Department Included capital
budget
Separate 5-year plan
No No Yes Yes Yes
Excellence in Operating
Budget
Menlo Park Annual 136 Department Included No Yes Yes No, won award for ACFR No 61 CC 03-04-2025
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13 City Frequency Pages
Budget Level
(Dept, Division or
Program) CIP Included
Budget in
Brief
Y/N
Online
Interactive
Budget
Hard
Copy
Budget GFOA Award CSMFO Award
Milpitas Annual 385 Budget summarized by
Division
With no narrative by
Division
Included capital
budget
Separate 5-year plan
Yes Yes Yes Yes, won a special
distinction
for performance
measures
Yes
Innovation Awards
Morgan Hill Annual 332 Department Separate Capital
Budget
No No Yes No Yes
Excellence in Operating
Budget
Palo Alto Annual 585 &
697
Department - Fund Separate Capital
Budget
No Yes Yes Yes, won a special
distinction
for performance
measures
Yes
Capital and Operating
San Bruno Annual 302 Department Included capital
budget
Separate 5-year plan
Yes No Yes No Yes (2020)
Excellence in Operating
Budget
Sunnyvale Annual 726 &
676
Fund - Department Separate Projects
Budget
Yes No Yes Yes, won a special
distinction
for performance
measures
No

Review of the components of the comparable cities shows that the budget is broken down by Department and Fund level compared to Cupertino which goes into programmatic detail. Additionally, for all cities compared, the capital budget document is posted together with the operating budget online or as a separate volume or incorporated in the main budget document. The size of the budget varies for most cities, but the majority are under 400 pages. 62 CC 03-04-2025
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14 Budget Document Observations and Recommendations
The City of Cupertino has an extensive budget document that contains detailed budget information at the program level. There is also duplication of information throughout the document. We developed recommendations to reduce the information contained in the document but still capturing the pertinent information for the user of the document.

Budget Formatting
The budget document needs to include consistent formatting and typical items in any document such as a title page and a table of contents that is easily understood and navigable. We also noted some pages are not formatted in proper orientation (portrait vs. landscape). Consistency is important in the appearance of what can be considered a complex document.

Recommendation 1. Ensure the document includes a title page, improved table of contents, consistent layout and orientation.

Budget Message
The Budget Message section currently contains five subsections:
• Budget Message,
• Strategic Goals,
• Notable Accomplishments,
• New Initiatives and
• Budget Overview.

We believe this section needs to be reorganized to better emphasize its various components and streamline the budget presentation. The section name is confusing as it includes other separate sections besides the Budget Message. The Budget Message itself is well written and offers the reader good information on the state of the City. Because of its importance, a best practice of other agencies is to have the Budget Message stand on its own as its own section. We believe this should be adopted in the City’s budget document as well.

Recommendation 2. Isolate the Budget Message as a standalone section.

The Strategic Goals section is well written and offers the reader good information on the City Council’s priorities. In the absence of a full strategic plan, this section best captures the highest priorities upon which the budget should be based. (See “Strategic Planning” subsection of this report within the Performance Measures section for recommendations regarding strategic planning.) Because the City’s mission and its priorities provide an overarching theme upon which the budget should be developed, this section belongs at the front of the document in the Introduction section.

Recommendation 3. Incorporate the City’s Mission in the Budget Guide section with the Strategic Goals subsection and move them to the Introduction section after the City’s organization chart. 63 CC 03-04-2025
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15 Other areas of the current Budget Message section can be condensed for consistency and moved to other sections of the document.

Recommendation 4. Eliminate the Notable Accomplishments and New Initiatives sections by condensing its content into a bulleted one or two sentence description for each accomplishment and relocate each relevant accomplishment to the respective department section.

Recommendation 5. Summarize high-level notable accomplishments and new initiatives within the City Manager’s Budget Message The Budget Overview subsection contains a summary of all funds that reads like a Budget-in Brief document and is very useful for the reader. Given our other recommendations above, this is the sole remaining subsection of the current Budget Message section of the budget. The Budget Overview should be a standalone section within the budget document.

Recommendation 6. Elevate the Budget Overview subsection as its own section in the budget document.

The Budget Overview section will now contain the following subsections as currently included in the City’s existing budget:
• Budget Roadmap,
• Changes to the Budget and Policies,
• Budget by Fund,
• Service-Level Reductions,
• Special Projects,
• Current Economic Update,
• Key Budget Assumptions, and
• Ongoing Challenges
Each of these sections add value to the document, however there are ways to streamline their presentation to focus on the important elements in the City’s Budget Overview. The Service Level reductions sub section by department details each proposed reduction at the program level and it is difficult to consume the impact of the reductions. This should be condensed to a summary level with details spelled out in each relevant department section. When the time comes that the City no longer needs to reduce services, this element can be eliminated or changed into “key budget changes” that are discussed in the City Manager’s Budget Message.

Recommendation 7. Report department reductions at the summary level and refer to the department section for further detail.

The resulting Budget Overview section can become the basis of the City’s “Budget at a Glance” document for the future. It would need to be summarized and condensed into no more than four letter-size pages written in easy-to-understand non-financial language so that stakeholders within the community with no training in municipal finance can understand the key elements of the City’s adopted budget. This should be published upon adoption of the final budget for each budget cycle.

Recommendation 8. Complete and publish the FY 2024-25 Budget at a Glance document to summarize the budget for the casual user.
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16 Budget Guide
This section is unnecessary for the budget document and pertinent sub sections should be moved to other sections of the document. As long as they are included within the appendix or other pertinent sections, the City can still qualify its budget document for the GFOA award.

Recommendation 9. Move the Mission Statement to the strategic goals section.

Recommendation 10. Move the Elements of the Budget Document, Glossary of Budget Terminology, Commonly Used Acronyms, and
Revenues/Expenditures/Fund Balance Table to the Appendix.

Community Profile
The Community Profile section currently includes eight subsections. • History,
• Community Economic Profile,
• City Profile,
• Education,
• Programs and Applications,
• Community Statistics,
• Community and Recreation
Services, and
• Things to Do and See
The History, Community Economic Profile, and Community Statistics sections are the only sections needed for the GFOA award. The other sections have good information but is not normally provided in a budget document. This information is better served on the City’s website or in a program guide and only extends the size of the budget document.

Recommendation 11. Eliminate the City Profile, Education, Programs and Applications, Community and Recreation Services and Things to Do and See subsections of the Community Profile section from the budget document.

Financial Policies
Including key financial (budget) policies upon which the budget is based is a best practice to inform the reader of the policies that inform the preparation of the Budget. The GFOA only requires a summary of financial policies. This section in the budget document contains the entire policy. Each policy should contain a summary and a link to the website for the entire policy, similar to how the Investment Policy is currently shown in the document.

Recommendation 12. Update all policies to provide a summary of the policy and include a link to the official policy on the City’s website. 65 CC 03-04-2025
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17 All Funds Financial Schedules
This section is a good summary of the budget that includes all funds. This is a best practice and required for the GFOA award. The Flow of Funds Chart (Sankey) is somewhat confusing, even with the explanation provided at the bottom of the chart. It is not a typical chart used in local government budgets. Instead, a narrative discussion of how taxes are used to fund City services is rightfully an area that public stakeholders are interested in, which could be supplemented by graphic depictions of, for example, a $100 bill that shows how taxes are allocated to various programs/services. This can be provided in the Budget Overview section instead of this section.

Recommendation 13. Eliminate the Flow of Funds Chart and replace it with a narrative description of how taxes are used to fund City services within the Budget Overview section of the budget.

General Fund Financial Schedules
This section provides important information on one of the most focused-upon funds in local government – the General Fund. It includes the following subsections:
• Contribution Schedule,
• Summary,
• Revenues,
• Expenditures,
• Transfers,
• Fund Balance, and
• Long-Range Forecast
The section starts out with a General Fund Contribution Schedule which is meant to depict how General Fund resources are subsidizing or supporting operations in various General Fund departments and other funds (e.g., Special Revenue funds, Enterprise funds, etc.). The table can be confusing to the casual reader. General Fund departments already identify what revenues they specifically bring in within their department sections. Contributions to other funds are already demonstrated in the Transfers subsection. This table can instead be summarized to show where the General Fund is contributing resources to other funds in a narrative overview.

Readers can refer to the City’s OpenGov site to find more details.

Recommendation 14. Revise the General Fund Contribution Schedule subsection to include a brief narrative of General Funds resources that are being contributed to other funds, refer to the General Fund Transfers subsection, and eliminate the existing table.

Recommendation 15. Refer the reader to the department section or OpenGov for further detail.

The Revenues section contains an in-depth review of each type of revenue which is contained in the long-range financial forecast schedule. The definition of each of the revenue components is useful but is, in many ways, duplicative in nature to the information that is included in the long-range financial forecast section. Information about each revenue source would best be 66 CC 03-04-2025
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18 presented as condensed information within this subsection, and the more exhaustive descriptions and relevant charts and graphics included in the long-term financial forecast.

Recommendation 16. Condense the General Fund Revenues to provide an overview of the key revenue sources, and include the more detailed descriptions and analysis in the General Fund Forecast subsection.

The Expenditure section includes good summary information and a reference to OpenGov for further detail could be added in case the reader wants to see additional detail. Otherwise, we recommend no changes in this section.

The General Fund Transfer section and the General Fund Fund Balance section also provide summary information, and no changes are recommended.

The General Fund Forecast section goes into great detail on the revenue components as the revenue forecast and the key assumptions upon which the long-range financial forecast is based are core ingredients in this section. The City might wish to review this level of detail and condense some of the information presented, but otherwise we believe the composition of these sections is good and proper.

Department Sections
The department section of any local government budget is important in demonstrating how fiscal resources have been appropriated to provide services to the community that the agency serves. The key question that a department section should answer is “How are City resources being used to accomplish its mission in serving the community?” Best practices suggest that the following key elements should be included in any department section of a local government agency, influenced by the nature of the agency (e.g., city, county, special district):
• Description of the department and its services;
• Organizational structure (personnel and/or divisions/programs); • Personnel summary (FTEs and FTE-equivalents for seasonal positions) • Key priorities, with emphasis on how they achieve the citywide strategic plan/priorities; and
• Revenues and Expenditure appropriations by division and/or program.

Smaller agencies might include line-item details within the department sections. Larger agencies, however, will summarize those details within the department section and may refer to a separate document or resource (e.g., OpenGov) for the detailed line-items upon which the budget is developed.

The City’s budget includes department sections with summary information by division level but also includes all of the details of each program including FTE allocation and all funds budget appropriation. This is primarily the reason for the voluminous size of the operating budget document, and the confusion which many departments find in understanding their 67 CC 03-04-2025
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19 appropriations each year. Most comparable cities show this information at the division or department level and while programs are shown as part of divisions, the overall budget information is rolled up to the division level.

The summary revenue and expenditure charts for each department provides the high-level analysis necessary to understand what revenue sources the department specifically brings in and how its resources are used to serve the community in the form of personnel, materials, contract services and allocation of costs from support departments (“cost allocation”).

The reader can drill down for more detail through OpenGov. The City posts its budget to OpenGov and there is a robust amount of information that the user can drill down and see. To condense the budget document, information should be shown at the division level with links to the OpenGov portal so budget document users can drill down to the specific program detail within the division.

We have two recommendations to streamline the presentation of department information that will provide transparency in services provided and the allocation of resources and streamline budget presentation.

Recommendation 17. Review each department section to include the following components: 1) Department description; 2) Organizational chart (by division/program including number of assigned personnel FTE equivalents); 3) Personnel summary (subtotals by position); 4) Key priorities, with emphasis on how they achieve the citywide strategic plan/priorities; 5) Performance measures with a reference to key departmental priorities and citywide strategic plan/priorities; and 6) Revenue and Expenditure summary by division/program and by expenditure type (personnel costs, materials and services, capital outlay, etc.).

Recommendation 18. Eliminate the program budget information in the department sections and refer the user to OpenGov to obtain further detail.

Capital Budget/Capital Improvement Plan
The City has not issued an official capital budget/capital improvement plan (CIP) document in three years. This is a critical step in the process of providing additional information and transparency to the capital budget. This is also a mandatory criterion for the GFOA award and the City risks losing the award if this is not completed.

Best practices for creation of the capital improvement plan to be incorporated within the budget include the following elements:
• Capital Improvement Plan Overview, including the following elements:
o Overview of what is included in the CIP (e.g., infrastructure improvements/maintenance, types such as parks and streets, whether capital outlay for equipment is included)
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20 o Summary of projects completed and closed out in the previous budget cycle/year o Key Projects for Current Budget Year with abbreviated summary descriptions of each
o Summary Five-Year Funding Analysis, including a summary of all projects by priority level and whether any projects are underfunded or unfunded. • CIP Budgeting Process, including:
o Definition of what a CIP project is
o Planning process (e.g., identifying CIP projects, project prioritization criteria, cost estimates, cost components, funding sources and development of the five-year plan
• CIP Project Descriptions, including each of the following elements:
o Project total by year by funding source
o Project total by year by expenditure category (estimated project cost, inflation/escalation, contingency)
o Project Priority Category Assignment, with any description of reasons therefore o Project Description (high-level summary, may include graphics where necessary) o Funding Sources, including any matching requirements for grant funding o Estimated Project Milestones (e.g., project design, project bid, construction, implementation/completion)
• Financial Summary by year, grouped by project type (e.g., utilities, transportation/roads, storm drains, parks, facilities, etc.)
• Funding Availability, grouped by priority level, displaying fund source and projected available revenue sources in total for the five-year outlook.

The City should incorporate these concepts in its CIP Plan section to be included in each budget and should be updated by the Public Works Department and integrated within the preparation of each budget for Council consideration and adoption.

Recommendation 19. Develop a minimum five-year Capital Improvement Plan and incorporate the CIP plan into the budget document.

Public Works is currently assigned as the department primarily responsible for development the City’s long-range CIP plan. Most agencies will assign development of the CIP plan to Public Works or Engineering, although there are some that assign that responsibility to the budget office or the department that acts in that capacity. Yet development of the CIP plan relies heavily on Public Works/Engineering expertise as stewards of the public infrastructure. We believe this assignment to Public Works for Cupertino is appropriate. However, the CIP plan cannot be developed in a vacuum. While Public Works takes the lead in developing most of the City’s long-range CIP plan, collaboration with other departments providing input into the various projects (e.g., Parks and Recreation for parks projects) and funding sources is necessary.

A spirit of shared responsibility is necessary, with Public Works in the lead role. The Administrative Services Department, as the City’s budget office, is then ultimately responsible for compiling and publishing the document as part of the overall budget document. 69 CC 03-04-2025
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21 Recommendation 20. Affirm primary responsibility and lead role of the development of the CIP Plan to Public Works as a shared responsibility and collaboration with other departments.

Recommendation 21. Assign compilation and publication of the CIP Plan section of the budget document to the Administrative Services Department’s Budget division.

Recommendation 22. Complete the FY 2024-25 Capital Budget and issue as Volume 2 of the current adopted budget.

Recommendation 23. Provide clear quarterly tracking of CIP priorities, progress, and alignment with Council work programs.

Recommendation 24. Create a detailed appendix for fund transfers, enterprise funds, and grant funding usage.

Recommendation 25. Ensure all appropriated funds and consulting services are tracked and reported against original purposes.

Other Budget-Related Matters
During the course of our work, other budget-related matters came to our attention that have an impact on the usefulness of the budget document and meeting the core principles discussed earlier. Those are discussed here.

Special Projects
The City uses the concept of Special Projects to indicate various priority projects that have been identified outside of the ordinary course of serving the community. The City has tracked these special projects within the context of the annual budget, providing a report on projects that were developed and their status heading into the subsequent budget year. The City also provides updates on special projects as a part of its quarterly financial report.

Concerns were raised as part of our interview process about the timeliness of the reporting, understanding the costs associated with each project, and the authority upon which the special project was developed and approved (e.g., staff-level authority vs. Council authority). There also seems to be confusion regarding how projects that either are not completed or span multiple fiscal years are budgeted and carried over. Staff indicates that quarterly reports are provided to the City Council as part of its quarterly financial reporting.

The issue that needs to be addressed is how Special Projects should be defined, the form of reporting, how often the reports should be prepared and discussed during Council meetings, and how best to follow-up on items that result from policy direction on those Special Projects as the year progresses. There needs to be a common understanding of these parameters among Council and staff.
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22 We believe that a policy that addresses these issues should be created. The policy should be developed considering the context of the City’s highest priorities evidenced in the citywide strategic plan or strategic priorities (in the absence of a strategic plan). We believe that the reporting should be conducted quarterly, understanding that check-ins on specific projects may be necessary throughout the year.

Recommendation 26. Develop and implement a Special Projects policy to address such issues as definitions, approval authorities, timelines, projects spanning multiple fiscal years, budget carryovers for projects extending into a subsequent fiscal year, and periodic reporting timelines and form.

Contracted/Consulting Services
Concerns were also expressed relative to the use of contracted and/or consulting services throughout the budget year. Currently, the use of consulting services to support the delivery of services is within the context of the City Manager’s budget authority through the annual budget resolution as well as the Expenditure Policies of the City that are currently spelled out in the annual budget document. Most local government agencies in the region and in California include a provision within the annual budget adoption resolution that provides their City Manager or chief executive with the authority to expend funds appropriated at the fund/department level. The typical budget resolution also expresses that the City Council is the authority relative to position control, meaning that new positions cannot be created without Council approval. It is not uncommon for the city manager to be granted authority to use appropriated funds, within the fund/department limitation, to use contracted and/or consulting services to support operational needs in achieving the objectives within the budget. In many cases, city managers will use contracted/consulting services to support operational needs where temporary staffing vacancies exist and where services must be delivered timely to meet the operational objectives.

To the extent that the City Council wishes to address this issue in the coming fiscal year, we recommend that this be clarified through the Expenditure Policy and/or the annual budget resolution.

Recommendation 27. Review the City’s annual budget resolution and/or expenditure and budget policies to ensure they align with City Council authorities provided to the City Manager or designee in managing the annual budget, including use of contracted and/or consulting services to achieve the City’s annual service delivery goals expressed in the adopted budget.

Budget Public Engagement

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23 resources it has been entrusted to oversee. Such public engagement can take on the form of various strategies including public information, education materials, and in-person community engagement activities to solicit input and inform the community on fiscal-related matters.

Moreover, it is important to stress that a budget document represents a “financial planning tool” that provides the allocation of resources to accomplish the agency’s objectives in service delivery to the community. These elements are important in conveying budget information to the community.

Increasing engagement with the budget is essential for fostering transparency and understanding within the community. By actively involving the public in the budgeting process, governments can build trust and ensure that residents feel informed and empowered.

The City’s existing Budget Roadmap indicates various points in the budget process for public engagement. Typically, those are included as part of City Council meetings rather than separate engagement opportunities with community stakeholders. Yet the City publishes several well- designed and informational documents, notices, and engagement opportunities via the City website and social media accounts to inform and engage the community in budget deliberations.

Recommendation 28. Review the City’s current budget community engagement strategy with the City Council to ensure it is successfully meeting the needs for identifying community priorities and to inform the community about how City services are funded.

Recommendation 29. Review educational content on the budget’s role as a financial planning tool and document in light of any changes to the engagement strategy using easy-to-understand content and graphics.

Recommendation 30. Leverage tools like OpenGov to create interactive, department-focused summaries for each user type including the community, council and staff.

Recommended Document Framework (Table of Contents)
Based on our recommendations indicated above, we recommend the following changes to the budget document framework that will streamline its presentation and make it easier to navigate. These changes balance the need for detailed information with creating a document that is understandable by finance professionals, City/department leaders, stakeholders and community members alike. These changes will still allow the City to pursue GFOA awards for excellence in budgeting. Changes are indicated in red font.

Introduction
City Organizational Chart
City Mission and S trategic Goals (moved from Budget Summary and Budget Guide and combined)
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24 Directory of City Officials
Commissions and Committees
GFOA Distinguished Budget Presentation Award
CSMFO Operating Budget Excellence Award
Resolutions
Budget Message (m oved out of Budget Summary into its own section) Budget Overview (moved out of Budget Summary into its own section) Budget Summary
Budget Message
City Mission and Strategic Goals -(move to Introduction section) Notable Accomplishments-(move to department section)
New Initiatives (move to department section)
Budget Overview
Budget Guide
Our Mission (move to Introduction section)
Elements of the Budget Document- (move to appendix)
Glossary of Budget Terminology- (move to appendix)
Commonly Used Acronyms- (move to appendix)
Revenues, Expenditures, and Fund Balance Table (move to appendix) Community Profile
History
Community Economic Profile
City Profile ( leverage City website to host such information) Education (leverage City website to host such information) Programs and Applications (leverage City website to host such information) Community Statistics
Community and Recreation Services ( leverage City website to host such information) Things To Do and See (leverage City website to host such information) Financial Policies (summarize key policies rather than detailed policy descriptions) Annual Budget Process
Structure of City Finances
Fund Structure
Department/Fund Relationship
Balanced Budget Policy
Revenue Policies
Expenditure Policies
Capital Improvement Programs Policy
Information Technology Replacement and Capitalization Policy Pension and Retirement Funding Policy
Long Term Financial Stability Policies
Committed, Unassigned Fund Balance, and Use of One Time Funds Policy Investment Policy
Community Funding Policy
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25 Appropriations Limit
Legal Debt Margin
All Funds Financial Schedules
Financial Overview by Fund
Flow of Funds Chart (Sankey) (eliminate and summarize use of tax resources) 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
Departments (
see Recommendation #17 regarding streamlined content to include for each section listed below)
Council and Commissions
Department Overview
City Council
Commissions
Community Funding (summarized in overview)
Historical Society (summarized in overview)
Sister Cities (summarized in overview)
Technology, Information & Communications Commission (summarized in overview)
Library Commission (su mmarized in overview)
Arts and Culture Commission (summarized in overview)
Public Safety Commission (summarized in overview)
Bicycle and Pedestrian Commission (summarized in overview) Parks and Recreation Commission (summarized in overview) Teen Commission (summarized in overview)
Planning Commission (summarized in overview)
Housing Commission (summarized in overview)
Sustainability Commission (summarized in overview)
Audit Committee (summarized in overview)
Administration
Department Overview
City Manager
Sustainability (summarized in overview)
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26 Office of Communications (summarized in overview)
Multimedia (summarized in overview)
Public Access Support (summarized in overview)
Community Outreach and Neighborhood Watch (summarized in overview) Office of Emergency Management (summarized in overview) Economic Development (summarized in overview)
City Clerk
Duplicating and Mail Services ( summarized in overview) Elections (summarized in overview)
City Manager Contingency
City Attorney
Law Enforcement
Department Overview
Law Enforcement
Interoperability Project (summarized in overview)
Innovation and Technology
Department Overview
Innovation & Technology Administration
Video
Applications
Infrastructure
GIS
Administrative Services
Department Overview
Administrative Services Administration (
summarized in overview)
Accounting (summarized in overview)
Business Licenses (summarized in overview)
Purchasing (summarized in overview)
Budget (summarized in overview)
Finance
Human Resources
Retiree Benefits ( summarized in overview)
Insurance Administration (summarized in overview)
Workers Compensation Insurance (summarized in overview) Long Term Disability (summarized in overview)
Compensated Absences (summarized in overview)
Parks and Recreation
Department Overview
Parks and Recreation
Business and Community Services
Recreation and Education
Sports, Safety and Outdoor Recreation
Recreation Administration (summarized in overview)
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27 Library Services (summarized in overview)
Administration (summarized in overview)
Cultural Events (summarized in overview)
Facilities (summarized in overview)
Administration (summarized in overview)
Youth Teen Recreation (summarized in overview)
Senior Center (summarized in overview)
Teen Programs (summarized in overview)
Neighborhood Events (summarized in overview)
Park Facilities (summarized in overview)
Administration (summarized in overview)
Blackberry Farm Golf Course (summarized in overview)
Outdoor Recreation (summarized in overview)
Sports Center Operations (summarized in overview)
Community Development
Department Overview
Community Development A dministration
Current Planning
Mid and Long Term Planning (summarized in overview)
Housing Services
CDBG General Admin (summarized in overview)
CDBG Capital/Housing Projects (summarized in overview)
CDBG Public Service Grants (summarized in overview)
BMR Affordable Housing Fund (summarized in overview)
Human Service Grants (summarized in overview)
General Building
Building Plan Review (summarized in overview)
Building Code Enforcement (summarized in overview)
Muni Code Enforcement (summarized in overview)
Code Enforcement
Public Works
Department Overview
Public Works Administration
Environmental Programs
Developmental Services
Service Center
Grounds
Streets
Trees and Right of Way
Facilities and Fleet
Transportation
Sustainability (summarized in overview)
Resource Recovery (summarized in overview)
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28 Non-Point Source (summarized in overview)
Storm Drain Fee (summarized in overview)
General Fund Subsidy (summarized in overview)
Storm Drain Maintenance (summarized in overview)
Plan Review (summarized in overview)
CIP Administration (summarized in overview)
Service Center Administration (summarized in overview)
Golf Grounds Maintenance (summarized in overview)
McClellan Ranch Park (summarized in overview)
Memorial Park (summarized in overview)
BBF Ground Maintenance (summarized in overview)
School Site Maintenance (summarized in overview)
Neighborhood Parks (summarized in overview)
Sport Fields Jollyman, Creekside (summarized in overview) Civic Center Maintenance (summarized in overview)
Sidewalk Curb and Gutter (summarized in overview)
Street Pavement Maintenance (summarized in overview)
Street Sign Marking (summarized in overview)
Street Lighting (summarized in overview)
Equipment Maintenance (summarized in overview)
Environmental Materials (summarized in overview)
Trail Maintenance (summarized in overview)
Overpasses and Medians (summarized in overview)
Street Tree Maintenance (summarized in overview)
Sheriff Work Program (summarized in overview)
BBF Golf Maintenance (summarized in overview)
City Hall Maintenance (summarized in overview)
Library Maintenance (summarized in overview)
Service Center Maintenance (summarized in overview)
Quinlan Community Center Maintenance (summarized in overview) Senior Center Maintenance (summarized in overview)
McClellan Ranch Maintenance (summarized in overview)
Monta Vista Community Center Maintenance (summarized in overview) Wilson Park Maintenance (summarized in overview)
Portal Park Maintenance (summarized in overview)
Sports Center Maintenance (summarized in overview)
Creekside Park Maintenance (summarized in overview)
Community Hall Maintenance (summarized in overview)
Teen Center Maintenance (summarized in overview)
Park Bathrooms Maintenance (summarized in overview)
Blackberry Farm Maintenance (summarized in overview)
Franco Traffic Operations Center (summarized in overview) City Hall Annex (summarized in overview)
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29 Community Shuttle (summarized in overview)
Traffic Engineering (summarized in overview)
Traffic Signal Maintenance (summarized in overview)
Safe Routes 2 School (summarized in overview)
Non-Departmental (Fixed Assets Acquisition)
Non-Departmental
Department Overview
General Fund Non-Departmental (summarized in overview)
Tree Fund Non-Departmental (summarized in overview)
Debt Service Non-Departmental (summarized in overview)
Capital Reserve Non-Departmental (summarized in overview) Facility Lease Debt Service
Appendix
Unfunded Needs
CIP Schedule
All Funds Forecast Schedule
Personnel Schedule
Elements of the Budget Document
Glossary of Budget Terminology
Commonly Used Acronyms
Revenues, Expenditures, and Fund Balance Table

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30 Performance Measures
Performance Measures Interview Themes
As mentioned earlier, we conducted individual interviews with all City Councilmembers and nine staff members. The following represents the themes we heard as part of our interview of each group, respectively.

Interview Themes – Council
The common themes regarding the performance measures from council interviews are summarized into the following themes:

1. Governance and Oversight
a. There is a lack of oversight in public works and other areas. b. There is a need for improved transparency, particularly regarding project statuses and permitting.

2. Performance Measures Needed
a. Council addressed the following areas that need improved performance measures:
i. Public safety community perception
ii. Community amenities and service utilization
iii. Code enforcement responsiveness
iv. Permitting process efficiency and equity
v. Financial and economic performance
vi. Employee and resource management
Interview Themes – Staff
The common themes regarding the performance measures from staff interviews are summarized in the following five themes:

1. Lack of Alignment with Goals
a. Performance measures often do not align with departmental goals, which themselves are closer to mission statements rather than actionable objectives. b. The disconnect between measures and goals reflects limited initial input from department directors during the creation of performance measures.

2. Limited Engagement and Emphasis
a. There is no clear mandate or directive emphasizing the importance of performance measures, leading to a lack of priority across departments. b. Most departments primarily update existing metrics with little effort to develop or refine new measures.

3. Process Challenges and Misunderstandings
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31 a. Staff are unclear about the timeline, process, and format for updating performance measures during the budget cycle.
b. Confusion exists between workload indicators (operational data) and performance measures (outcome-focused metrics).

4. Lack of Standardization and Collaboration
a. There is no standardized timeline or regular meetings for department heads to collaborate on and review performance measures.
b. Departments have ideas for improvement but lack a coordinated process to update measures effectively.

5. Data Dependencies and Interdepartmental Impact
a. Changes to performance measures may require verification of data availability by I&T, creating additional hurdles.
b. Shared data sets between departments mean that updates to one department’s measures can have cascading effects on others.

Key Takeaways
The interviews with both Council and staff reveal consistent themes related to the need for improved performance measures but highlight different areas of concern. Both groups emphasize the importance of aligning performance measures with the City’s overarching goals.

Council members focused on the need for clear governance and oversight, particularly in public works and project transparency, while staff point to the lack of alignment between departmental goals and performance metrics. Both also identify a lack of prioritization and emphasis on performance measures, with Council seeking clearer accountability and staff noting limited engagement and unclear directives. Additionally, both groups agree that there is a need for a more structured process, with Council advocating for more strategic direction and staff noting confusion in how performance measures are developed and updated.

Ultimately, both Council and staff recognize the importance of performance measures but agree that the current system requires better alignment, clearer guidelines, and improved collaboration to be effective.

Current Performance Measures Review and Analysis
Our initial observations about the department performance measures and the process are summarized into the following two themes:

1. Alignment with Overall City Goals
a. Department goals do not directly align with the City Council’s five priority goals; they are too broad to be linked to any one specific goal. b. Internal auditors have suggested the need for a strategic plan. c. Departments list a single, mission-like goal in the budget, with all performance measures tied to it, but no other specific departmental goals d. Staff invest little time in performance measures due to their disconnect from overall city goals.
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32 2. Performance Measures Utilization
a. There are no clear instructions for creating new or updating performance measures.
b. Departments are reluctant to develop performance goals, believing no one reviews them.
c. Staff feel the existing goals are sufficient and don't need revision. d. Departments would like to update their performance measures but with no importance placed on the measures, they fill in the current performance measures.

Performance Measures Observations and Recommendations
The City’s budget document includes performance measures, something that several other cities in the region do not. For that, the City is to be complimented. However, the performance measures need to be relevant to those key metrics that evaluate the City’s performance in meeting the priority needs of the community. We developed recommendations to identify meaningful performance measures for the City’s consideration in evaluating performance in the years to come.

Performance Measures vs. Workload Indicators
Currently in the budget document, there is no clear distinction between a performance measure and workload indicator. Additionally, there is no standardized approach in the budget document to determine which departments, divisions or programs should have either a performance measure, a workload indicator, or a combination of both. This inconsistency can make it difficult to assess and compare the effectiveness or efficiency of different departments or services. For example, the Recreation and Community Services Department has overarching departmental performance and workload indicators on a divisional level while the Public Works Department has both performance measures and workload indicators at a division and program level.

Guidelines for which types of metrics should be applied departmentally, divisionally and programmatically can help ensure consistency. A standardized approach would help ensure that the performance metrics and workload indicators are tailored to its goals, operations, and desired outcomes.

Additionally, the current budget document lacks a clear and consistent differentiation between performance measures and workload indicators, which are two distinct and important types of metrics.
• Performance measures are indicators that assess the effectiveness, efficiency, and outcomes of a program or service. These metrics focus on the results achieved relative to the goals set, offering a gauge of whether objectives are being met and how well resources are being utilized to achieve these outcomes. Performance measures often involve qualitative or quantitative data that demonstrate the success or impact of a 81 CC 03-04-2025
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33 program. For example, a performance measure could include metrics such as customer satisfaction rates, reduction in response time for a service, or improvements in a specific outcome. These measures help stakeholders understand the value delivered by a program and can guide decisions on areas for improvement, funding allocation, or program expansion.
• Workload indicators measure the volume or level of activity within a program or service, tracking the inputs or resources required to carry out specific tasks. Workload indicators typically quantify aspects such as the number of transactions processed, the number of people served, the amount of time spent on activities, or the frequency of certain events or processes. These indicators help to assess the scope of operations, and the demand placed on staff and resources. For instance, a workload indicator might include metrics like the number of calls answered, the volume of permits issued, or the number of inspections conducted. While workload indicators provide insight into the operational aspects of a program, they do not necessarily reflect the effectiveness or quality of the services being delivered.

Table 4 presents our analysis of the current “performance measures” included in the current budget document as to whether those items are performance measures or workload indicators.

Table 4. P
erformance Measures Versus Workload Indicators

Departments Division Program Current PM Current WI
City Attorney
City Manager
City Clerk x x
Public Affairs x x
Sustainability Program x
Economic Development x x
Law Enforcement x x
City Treasurer
Administrative Services
Finance x x
Human Resources x x
Community Development x
Building x
Planning x
Economic Dev
Code Enforcement
Housing x
Recreation and Community Services x
Rec and Ed x
Sports, Safety, Outdoor Rec x
Business and Comm Services x
Public Works
Capital Improvement Program x x
Development Services x x
Transportation x x
Environmental Programs x x
Service Center
Grounds x x
Streets x x
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34 While workload indicators can identify how busy a department might be, the focus should instead be on performance measures to determine whether departments are being successful in delivering services to the community and identify areas that require additional focus or resources as part of the budget process.

Strategic Planning
Since the creation of the original performance measures and workload indicators, there has been a lack of clear, consistent guidance on how departments should update and refine these metrics over time. Without a structured approach for periodic review and adjustment, these metrics may become outdated, misaligned with evolving departmental goals, or insufficient to reflect changes in service delivery, operations, or external factors. As a result, the data collected through these metrics may no longer provide an accurate or comprehensive picture of a department's performance or workload.

Integrating the update of these metrics into a formal, ongoing strategic planning process can help address this issue. For Cupertino, implementing a structured strategic planning process is crucial to ensuring that its programs and services remain effective, relevant, and aligned with the city's evolving needs. In 2020, the City Council adopted five overarching goals to guide the city’s priorities, which are reviewed every two years. These goals feed directly into the City’s Two-Year Work Plan, but they currently do not tie into the budget, leaving a gap in how the city’s objectives are measured and funded. By creating an overarching City Strategic Plan, Cupertino can establish a high-level roadmap for all departments, aligning their performance measures and workload indicators with the city’s long-term goals.

A City Strategic Plan would provide a clear framework for ensuring that each department's metrics are directly tied to the city's priorities and resources, promoting consistency across departments and ensuring that all efforts are aligned with the broader vision for Cupertino’s future. This process would help the city maintain a unified vision, guide resource allocation, and evaluate performance based on clear, well-defined objectives. Additionally, by incorporating the update of performance measures and workload indicators into the strategic planning cycle, the city can ensure these metrics remain relevant and effective as the city grows and its needs evolve.

Moreover, this process would foster a culture of continuous improvement by encouraging regular reflection on past performance, identifying areas for adjustment, and implementing data-driven decisions. By embedding performance measures and workload indicators within a Departments Division Program Current PM Current WI
Trees & ROW x x
Facilities and Fleets x x
Innovation and Technology
GIS x x
Multimedia x
Infrastructure x x
Apps x x
Video
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35 citywide strategic planning framework, Cupertino can ensure a cohesive and efficient approach to meeting its goals and improving service delivery.

The pyramid structure in Figure 2 that follows provides a framework for how to begin thinking about strategic planning for the City.
• Core Values – Core values form the foundation of an organization, guiding decisions and actions in fulfilling its mission and vision. They define what the organization stands for, providing boundaries around leadership, service philosophy, priorities, and strategies.
• Mission – The mission statement focuses on the present, defining the organization’s purpose and answering, "What do we do?"
• Vision – The vision, on the other hand, looks to the future, answering "Where are we going?" and offering inspiration for the community, staff, and policymakers. • Organizational Goals – Organizational goals outline the direction and desired future, offering the "why" behind specific actions.
• Organizational Strategies – Strategies are the means to achieve these goals, providing a method to ensure success. Performance measures are developed to assess whether the goals are being met, and these can be organization-wide or department-specific. • Strategic Priorities – Strategic priorities form an implementation action plan (IAP) that assigns responsibility across departments, ensuring goals and strategies are achieved. • Personal Priorities – Personal priorities create action plans for staff and volunteers, aligning their efforts with the organization’s broader mission and vision to serve the community effectively.

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36 Figure 2. Strategic Planning Framework

Based on the foregoing, we believe that the City should develop a strategic plan along the lines of what we have presented above.

Recommendation 31. Develop a citywide strategic plan that includes a review of the core values, mission and vision by the City Council to form the appropriate strategic goals and priorities for the organization and its operating departments.

Personal
Priorities
Strategic
Priorities
Organizational Strategies
Organizational Goals
Vision
Mission
Core Values
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37 Recommended Performance Measures
As stated earlier, this project seeks to bridge the gap between outdated performance metrics and the City’s evolving needs, ensuring that the measures not only reflect current service delivery priorities but also support continuous improvement and accountability across departments. We have also taken care to eliminate workload indicators from this list since, as indicated earlier, workload indicators merely represent how busy a department might be whereas performance measures are the key indicators of whether the City is achieving the outcomes it desires based on its strategic initiatives and priorities.

Table 5 details current performance measures by department and proposed new performance measures, with the performance measures in red being new proposed performance measures.

Priority 1 performance measures should be implemented in the next budget. Priority 2 performance measures should be reviewed and implemented as soon as possible. Standards for performance will need to be established, with City Council approval, to have a basis upon which to evaluate performance and an indicator of areas that require greater focus or attention.

This set of recommended performance measures will need to be updated when the City conducts a strategic planning process as discussed above.

Table 5. S
uggested Performance Measures

Department/Division Current Performance Measures Recommended Performance Measures City Manager’s Office
City Attorney N/A Priority 1:
• Percent of City Council resolutions reviewed within 7 business days • Percent of public information requests for legal review submitted to City Attorney’s office reviewed within 7 business days
• Percent of legal opinion requests from external department responded to within 5 business days
• Percentage of contract reviews completed within 10 business days City Manager N/A Priority 1:
• Percent of council requests responded to within 24 hours • Percentage of citizen requests to the City Manager’s Office acknowledged in 3 business days
• Percent of Council requests/inquiries on published agenda items that are provided to Council at or before the Council meeting
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38 Department/Division Current Performance Measures Recommended Performance Measures City Clerk • City Council minutes for meetings presented for Council approval by the following regular meeting • Adopted City Council resolutions and ordinances
processed and city scanned to Laserfiche within a week of Clerk’s office receipt of final, signed
document
• Public Record Act requests responded to by the Statutory deadline date
Priority 1:
• Percent of City Council preliminary agenda posted on time, in accordance with Open Government Ordinance, 6 business days prior to meeting • Percent of City Council Agendas packets prepared, posted and delivered 4 days prior to meeting
• Percent of timely filings of Fair Political Practices Commission Form 700 Statements of Economic Interest
• Percent of timely filings of Fair Political Practices Commission Forms 460/Campaign Committee reports
Priority 2:
• Percent of City Council minutes for regular meetings presented for Council approval by the following regular meeting"
• Percent of adopted City Council resolutions and ordinances processed and scanned to Laserfiche within 1 week of Clerk’s office receipt of final, signed document
• Percent of Public Record Act requests responded to by the Statutory deadline date
Public Affairs/
Communication
• Social media engagement: total number of followers
including City Hall Nextdoor, Facebook, Twitter, and
Instagram accounts
• Community engagement: total number of IOI
recipients
• Total number of Gov Delivery Notices sent
• Cupertino 311: Average response time to customers
organization‐wide (in days)
Priority 1:
• Growth of number of total followers on City social media channels (Facebook, LinkedIn, X, Instagram, Nextdoor)
Priority 2:
• Percent of residents that rate the overall quality of information on the City’s communications channels as good or excellent
• Social media engagement: total number of followers including City Hall Nextdoor, Facebook, Twitter, and Instagram accounts
• Social media engagement: average number of engagements (reactions, comments, shares, and clicks) per post on City Hall Facebook account • Community engagement: total number of IOI recipients
• Total number of Gov Delivery Notices sent
Economic
Development
• Maintain Economic Development Business Connect
Subscribers
• Economic Development Business Visits, Workshops
& Events
Priority 1:
• Number of meetings conducted with developers and prospective businesses • Growth in the number of people subscribing to Business Connect Newsletter • Percentage growth of number of corporate visits
Law Enforcement • Response Time for
o Priority 1 Calls
o Priority 2 Calls
o Priority 3 Calls
• Total Teen/Community maintaining minimum
attendance
Priority 1:
• Percent of calls that met response time standards for • Priority 1 Calls
• Priority 2 Calls
• Priority 3 Calls
• Percent of graduates from the Teen Academy
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39 Department/Division Current Performance Measures Recommended Performance Measures Administrative Services
Finance • General Fund committed, assigned, and unassigned fund balance as a % of budgeted appropriations"
• Credit Rating
• Actual revenue vs. budget (% below budget)"
• Actual expenditure (% below budget)
• Funding allocated to high priority services (Public
Works, Community Development, Law Enforcement)"
Priority 1:
• General Fund committed, assigned, and unassigned fund balance as a % of budgeted appropriations
• Total actual revenue vs. budget within 10% of original projections • Consecutive years of maintaining a credit rating of A+ or better • Consecutive years of timely completion of debt compliance reporting • Number of high-risk internal audit issues identified
• Number of consecutive years that the City's annual financial statements receive an unmodified opinion from the External Auditors with no significant deficiencies or material weaknesses
Priority 2:
• Actual expenditure (% below budget)
• Average number of days from approved invoice received to check issuance • Percent of funding allocated to high priority services (Public Works, Community Development, Law Enforcement)
• Number of consecutive years the City's Annual Comprehensive Financial Report (ACFR) receives the Government Finance Officers Association Award
Human Resources • # of Worker’s Compensation Cases
• Total recordable Injury Rate YTD
• % absenteeism (% of total annual work hours)
• % turnover rate
• % Employee participation in wellness activities
• Average # of applications received per recruitment
• Recruitment timeline ‐ # days from hiring request to
offer letter"
Priority 1:
• Decline in workers compensation costs
• Citywide turnover rate percentage
• Percentage of recruitments completed within established timelines Priority 2:
• Number of workers compensation claims processed
• The total recordable Injury Rate
• Percent absenteeism (% of total annual work hours)
• Percent of Employee participation in wellness activities • Percentage of employees participating in Citywide training program • Average number of applications received per recruitment Community Development
Building • Building permit applications shall be plan reviewed within 15 business days.
• Customer/Applicants visiting the Building Permit
Counter shall be assisted within 15 minutes

Priority 1:
• Percent of building permit applications reviewed within 15 business days • Percent of customers/applicants visiting the building/permit counter that are assisted within 15 min
• Percent of customers/applicants visiting the building/permit counter rating the service received as good or better
• Percent c ompliance with regulations such as Permit Streamlining Act and AB1633
• Percent of building inspections performed versus the building inspections received
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40 Department/Division Current Performance Measures Recommended Performance Measures Planning • Applicants visiting the Planning Counter shall be assisted within 15 minutes
• Building permit applications reviewed/issued over‐the‐ counter (OTC)
Priority 1:
• Number of staff decision planning permit applications (excluding Design Review) submitted and percent receiving 1st set of staff comments in 30 or fewer calendar days
• Average number of days to review a revision
• Percentage of development applications scheduled for Planning Commission review within 90 business days of the project deemed complete • Percent of Applicants visiting the Planning Counter assisted within 15 minutes
• Percent of building permit applications reviewed/issued over the counter (OTC)
Priority 2:
• Number of required public meetings for applications deemed complete and heard by a hearing body within 90 days.

Code Enforcement • Average number of days to initiate investigation of code complaints
• Code enforcement cases resolved without issuance of
citations
Priority 1:
• Average number of days to initiate investigation of code complaints • Percent of code complaints through the 311 system that received an update on the status within 48 hours of initial contact
• Percent of code complaints through the 311 system that were resolved Housing • Below market rate rental and purchase vacancies filled
• Landlord‐tenant counseling and dispute resolution
cases provided
• Public Outreach Events
• Funds received from Community Block Grant (CDBG)
federal entitlement program
Priority 1:
• Percent of below market rate rental and purchase vacancies filled • Number of landlord‐tenant counseling and dispute resolution cases provided • Number of housing program applications (including BMR, first-time homebuyer and rehabilitation) and percent processed within 21 calendar days.
• Percentage decline in number of censused unhoused individuals within the community (Note: County is responsible for providing unhoused remediation programs; measure indicates whether greater coordination with County is needed)
Priority 2:
• Growth in outreach to target groups identified in Housing Element for housing redevelopment opportunities
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41 Department/Division Current Performance Measures Recommended Performance Measures Recreation and Community Services
All divisions • % Department’s total cost recovery for all (direct and indirect) costs
• # of new programs or events offered
• % of Parks and Recreation Department customers
surveyed who rate services as good or excellent
• % of programs maintaining minimum registration
Priority 1:
• % of Parks and Recreation Department customers surveyed who rate services as good or excellent
• % Department’s total cost recovery for all (direct and indirect) costs • % growth in total Enrollment in classes/camps/programs. • Average enrollment-to-capacity percentage in all recreation offerings • % of programs maintaining minimum registration
• Growth in reservations (e.g., facility rentals, picnic/court reservations) • Percent growth in memberships (e.g., senior center and sports center)

Public Works
Capital Improvement
Program
• Percentage of projects completed on budget
• Percentage of construction projects completed on
time
Priority 1:
• Timely completion of Capital Improvement Plan and incorporation into the budget document
• Consecutive years of publishing an updated Capital Improvement Plan • Percentage of projects completed within the originally adopted budget (unless formally amended)
• Percentage of projects completed on time
• Percentage of projects that have been started or completed from latest Capital Improvement Plan
Development Services • Respond to complete plan submittals or applications within two (2) weeks
• Respond to complete encroachment permit
applications within two (2) weeks
• Respond to public inquiries at the Public Works
counter in City Hall within 15 minutes
Priority 1:
• Percent of complete plan submittals or applications responded to within 2 weeks
• Percent of complete encroachment permit applications responded to within 2 weeks
• Percent of public inquiries at the Public Works counter in City Hall responded to within 15 minutes
• Cupertino 311: Average response time to customers organization‐wide (in days)
Transportation • Percentage of non‐emergency traffic signal requests addressed within 72 hours
• Percentage of emergency traffic signal requests
addressed within 2 hours.
• Percentage of traffic engineering requests responded
to within 72 hours
• Annual mileage increases of separated bicycle lanes
and pedestrian paths.

Priority 1:
• Percentage of non‐emergency traffic signal requests addressed within 72 hours
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42 Department/Division Current Performance Measures Recommended Performance Measures Environmental
Program
• Percent of businesses in compliance during annual
proactive stormwater pollution prevention inspections"
• Percent of non‐exempt businesses and multi‐family
accounts separating organics
• Percent trash/litter reduction achieved to meet
Stormwater Permit requirements"
• Diversion rate from all single‐family, multi‐family, and commercial accounts as reported by Recology
tonnage reports
• Respond to reports of actual or potential discharge
the same business day
• % of plan reviews completed in required number of
days
• Cubic yards of compost distributed via compost site
• % of vegetation obstructions resolved within 15 days
from time of report
Priority 1:
• Percent of businesses in compliance during annual proactive stormwater pollution prevention inspections"
• Percent of non‐exempt businesses and multi‐family accounts separating organics
• Percent trash/litter reduction achieved to meet Stormwater Permit requirements"
• Diversion rate from all single‐family, multi‐family, and commercial accounts as reported by Recology tonnage reports
• Respond to reports of actual or potential discharge the same business day • % of plan reviews completed in required number of days • Cubic yards of compost distributed via compost site
• % of vegetation obstructions resolved within 15 business days from time of report
Sustainability • % community‐wide emissions reduced from baseline of 307,288 MT CO2e/yr
• Initiate, develop, and complete actions from the
Climate Action Plan 2.0
• % initiated
• % complete or ongoing
• % municipal operations emissions reduced from
baseline of 1,865 MT CO2e/yr
Priority 1:
• Percentage of applicable capital improvement projects that integrate sustainability and resilience
• % community‐wide emissions reduced from baseline of 307,288 MT CO2e/yr
• % municipal operations emissions reduced from baseline of 1,865 MT CO2e/yr
Priority 2:
• Initiate, develop, and complete actions from the Climate Action Plan 2.0 • % CAP actions initiated
• % CAP actions complete or ongoing
Grounds • Percentage of 311 requests that are responded to and closed within 3 business days
• Percentage of the 1,872 park inspections, including
playgrounds, performed weekly
• Percentage of Backflow Prevention
• Devices inspected, tested and repaired annually
Priority 1:
• Percentage of 311 requests that are responded to and closed within 3 business days
• Percentage of the 1,872 park inspections, including playgrounds, performed weekly
• Percentage of Backflow Prevention
• Percent of parks and playgrounds rated as being maintained in good condition by visitors
• Percentage of parks and facilities that pass routine inspections Priority 2:
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43 Department/Division Current Performance Measures Recommended Performance Measures Streets • Pavement condition index (PCI) > or equal to 82 • Percent of the 2087 storm drain inlets inspected and
cleaned in fiscal year
• Percent of Inlets with Trash Capture Screens
inspected and cleaned twice yearly
• Percentage of roadway regulatory & street name
signs repaired or replaced
• Percentage of trip and fall complaints investigated
and mitigated within 2 business days"
• Percentage of reported streetlight outages
investigated and repaired in 3 business days
Priority 1:
• Pavement condition index (PCI) > or equal to 82 (or City standard as so established)
• Percent of the 2,087 storm drain inlets inspected and cleaned in fiscal year • Percent of Inlets with Trash Capture Screens inspected and cleaned twice yearly
• Percentage of roadway regulatory & street name signs repaired or replaced • Percentage of trip and fall complaints investigated and mitigated within 2 business days"
• Percentage of reported streetlight outages investigated and repaired in 3 business days
Trees & ROW • Percentage of 311 requests that are responded to and closed within 3 business days
• Percentage of trees inspected and maintained in the
yearly maintenance zone (8-year maintenance cycle)
• Percentage of trees planted versus trees removed
• # planted
• # removed
Priority 1:
• Percentage of 311 requests that are responded to and closed within 3 business days
• Percentage of trees inspected and maintained in the yearly maintenance zone (8-year maintenance cycle)
• Percentage of trees planted versus trees removed
o # planted
o # removed
Facilities and Fleets • Percentage of preventative maintenance work orders completed for Fleet assets within 14 days of the due
date.
• Percentage of facilities maintenance requests closed
within 30 days.

Priority 1:
• Percentage of preventative maintenance work orders completed for Fleet assets within 14 business days of the due date.
• Percentage of facilities maintenance requests closed within 30 business days.

Innovation Technology
GIS • GIS: % of time spent Developing Application
• GIS: % of time Maintaining applications
• GIS: Increase Property Information (Internal/External) site visits per month
• GIS: Cityworks utilization ‐ # of assets Cupertino
maintains vs # of assets maintained in Cityworks.

Also, the % increase of work units completed (WOs,
INSP,SRs)
Priority 1:
• Cityworks utilization ‐ # of assets Cupertino maintains vs # of assets maintained in Cityworks. Also, the % increase of work units completed (WOs, INSP,SRs)
Priority 2:
• GIS: % of time spent Developing Application
• GIS: % of time Maintaining applications
• GIS: Increase Property Information (Internal/External) site visits per month Multimedia/ Video • Percentage of total video productions performed vs scheduled productions (city meetings excluded)
• Percentage of total engineering projects vs scheduled projects
• Total video views on YouTube
Priority 1:
• Percentage of surveyed non-English speaking residents who are aware of and have accessed the City’s video productions in any media form Priority 2:
• Percentage of total video productions performed vs scheduled productions (city meetings excluded)
• Percentage of total engineering projects vs scheduled projects • Total video views on YouTube
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44 Department/Division Current Performance Measures Recommended Performance Measures Infrastructure • Infrastructure: Percentage based upon number of scheduled projects/Number of projects completed on
time"
• Infrastructure: Percentage based upon number of
Helpdesk tickets/SLA measurements
• Infrastructure: % Customer satisfaction based upon
Satisfaction Rate from helpdesk tickets
• Infrastructure: % of network uptime (not including
planned maintenance)
Priority 1:
• % of network uptime (not including planned maintenance) • Percentage based upon number of Helpdesk tickets/SLA measurements • % Customer satisfaction based upon Satisfaction Rate from helpdesk tickets • Percentage based upon number of scheduled projects/Number of projects completed on time"
• Percentage of helpdesk requests closed within 8 hours Apps • Applications: % of citywide‐enterprise application project management performed on time and on
budget"
• Applications: Number of website site visits/Number of site hits
• Applications: Number of support requests for the
applications support per month
Priority 1:
• % of citywide‐enterprise application project management performed on time and on budget"
• Number of website site visits/Number of site hits
• Number of support requests for the applications support per month • Number of legacy systems replaced, eliminated or consolidated. • Percent project implementations performed on time and budget

The performance measures identified herein will need to be reviewed in light of standards of performance expected for each Department. Performance measures for Parks and Recreation are consolidated for the overall department rather than division based on their operations and to provide an overall comprehensive view into parks and recreation services rather than by division. The final list will require review by City staff and City Council approval of those performance standards and should be updated at least biennially.

Recommendation 32. Establish performance standards for each performance measure and reevaluate at least biennially.

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45 Conclusion

A city’s budget document is one of the most important financial planning tools that the City Council and staff must review and complete each year. It should be reflective of the highest priorities that the City is facing in the budget year. The budget document should address the needs of the City Council to inform their decision-making, the staff to support their delivery of services to the community, and the community itself in understand how the City is spending its tax dollars and exercising its role as fiscal stewards of the tax dollars to which it has been entrusted. Performance measures relevant to achieving its strategic priorities are an important element that leads to trust in the services that the City provides.

The recommendations made herein will help the City streamline its budget document, which provides more meaningful information and is laid out in a way that is understandable. The performance measures we have identified will help the City evaluate its performance in achieving its goals.
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46 Attachment A – List of Recommendations
Recommendation 1. Ensure the document includes a title page, improved table of contents, consistent layout and orientation.

Recommendation 2. Isolate the Budget Message as a standalone section.

Recommendation 3. Incorporate the City’s Mission in the Budget Guide section with the Strategic Goals subsection and move them to the Introduction section after the City’s organization chart.

Recommendation 5. Summarize high-level notable accomplishments and new initiatives within the City Manager’s Budget Message
Recommendation 6. Elevate the Budget Overview subsection as its own section in the budget document.

Recommendation 7. Report department reductions at the summary level and refer to the department section for further detail.

Recommendation 8. Complete and publish the FY 2024-25 Budget at a Glance document to summarize the budget for the casual user.

Recommendation 9. Move the Mission Statement to the strategic goals section.

Recommendation 10. Move the Elements of the Budget Document, Glossary of Budget Terminology, Commonly Used Acronyms, and Revenues/Expenditures/Fund Balance Table to the Appendix.

Recommendation 12. Update all policies to provide a summary of the policy and include a link to the official policy on the City’s website.

Recommendation 13. Eliminate the Flow of Funds Chart and replace it with a narrative description of how taxes are used to fund City services within the Budget Overview section of the budget.

Recommendation 15. Refer the reader to the department section or OpenGov for further detail.

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47 Recommendation 17. Review each department section to include the following components: 1) Department description; 2) Organizational chart (by division/program including number of assigned personnel FTE equivalents); 3) Personnel summary (subtotals by position); 4) Key priorities, with emphasis on how they achieve the citywide strategic plan/priorities; 5) Performance measures with a reference to key departmental priorities and citywide strategic plan/priorities; and 6) Revenue and Expenditure summary by division/program and by expenditure type (personnel costs, materials and services, capital outlay, etc.).

Recommendation 18. Eliminate the program budget information in the department sections and refer the user to OpenGov to obtain further detail.

Recommendation 19. Develop a minimum five-year Capital Improvement Plan and incorporate the CIP plan into the budget document.

Recommendation 20. Affirm primary responsibility and lead role of the development of the CIP Plan to Public Works as a shared responsibility and collaboration with other departments.

Recommendation 21. Assign compilation and publication of the CIP Plan section of the budget document to the Administrative Services Department’s Budget division.

Recommendation 22. Complete the FY 2024-25 Capital Budget and issue as Volume 2 of the current adopted budget.

Recommendation 23. Provide clear quarterly tracking of CIP priorities, progress, and alignment with Council work programs.

Recommendation 24. Create a detailed appendix for fund transfers, enterprise funds, and grant funding usage.

Recommendation 25. Ensure all appropriated funds and consulting services are tracked and reported against original purposes.

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48 Recommendation 30. Leverage tools like OpenGov to create interactive, department- focused summaries for each user type including the community, council and staff.

Recommendation 32. Establish performance standards for each performance measure and reevaluate at least biennially.

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City of Cupertino – Budget Document Improvements and Performance Measures Draft Implementation Action Plan

March 2025
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Making the Most of the Draft Implementation Action Plan

Baker Tilly has developed this draft Implementation Action Plan to assist the City of Cupertino with the phasing and scheduling of 33 recommendations in the project report. That report sets forth the analysis leading to each recommendation. The work involved in implementing the recommendations will need to be integrated into the other work of the departments tasked with their completion, along with appropriate assignments of responsibility and with identification of specific planned completion dates. The draft Action Plan begins that process with guidance about a recommended priority assignment. Priority 1 recommendations are those that we believe are the most important to accomplish without delay or are easy to accomplish. Priority 2 recommendations have less importance in the near term or have an added element of complication to complete or require a significant amount of resources (perhaps internal and external) to assist with completion. Priority 3 recommendations are the least urgent to complete, either due to span of control or complexity Department .

We suggest that you use this document to prepare a final Action Plan for the City of Cupertino. In doing so, the management team will need to identify specific target dates for completing implementation activities associated with each recommendation. Additionally, you may want to modify the described activities for implementing an individual recommendation based on internal knowledge of what will be required for completion or adjust the assignment of responsibility based on pending or future workload or other considerations. Where a draft task calls for an event to occur “regularly” or with a preset frequency (e.g., quarterly, monthly) you’ll want to ensure that your implementing procedure or policy is written to accomplish that objective. Prudent implementation of most recommendations will require “circling back” after the work of implementation has begun to fine-tune the work or the milestones based on experience. This step is not explicitly called out for each recommendation; however, assessing the progress of implementation (via “circling back”) should be a part of your normal management system. We would be happy to set up a consultation with you to support the conversion of this draft into the final Action Plan you can use to manage implementation.

To turn this draft into the Action Plan that is used to manage implementation, replace the column titled “Priority” with actual completion dates. Target dates can be specific (e.g., September 1) or by month or quarter (e.g., 3Q 2025), as appropriate to the individual action.

All of the work to implement the strategies is in addition to the normal work of involved City staff. Baker Tilly has staff associates who are experienced in implementing many of the actions identified in this draft Action Plan. We welcome the opportunity to assist you in doing so, and in any case, we remain available to consult with you in whatever way we can be helpful. Please do not hesitate to contact Carol Jacobs at 949-809-5588 or Steve Toler at 408-385-3414 if we can be of assistance. Steve Toler can be reached by email at [email protected].

The discipline of project planning is basic to the successful execution of the work ahead. We hope that you find the draft Implementation Action Plan useful in that regard. 99 CC 03-04-2025
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City of Cupertino – Budget Document Improvements and Performance Measures
Draft Implementation Action Plan Baker Tilly

1 Rec
No. Recommendation Implementation Steps Priority1
Department
Responsible2 Comments
1 Ensure the document includes a title page, improved table of contents, consistent layout and orientation.
• Review the budget document for consistent formatting including font, font size, page orientation
• Ensure title page and table of contents are properly formatted 1 Admin Services
2 Isolate the Budget Message as a standalone section. • Move the Strategic Goals Budget Message section to the front of the document in the Introduction Section
2 Admin Services
3 Incorporate the City’s Mission in the Budget Guide section with the Strategic Goals subsection and move them to the Introduction section after the City’s organization chart.
• Condense the City’s Mission in the Budget Guide section areas of the Budget Message
• Move to the introduction section
2 Admin Services
4 Eliminate the Notable Accomplishments and New Initiatives sections by condensing its content into a bulleted one or two sentence description for each accomplishment and relocate each relevant accomplishment to the respective Department section.
• Condense Notable Accomplishments and New Initiatives sections into small bulleted or narrative list by Department
• Move each bulleted description into relevant Department section
• Remove Notable Accomplishments and New Initiatives sections 2 Admin Services
5 Summarize high-level notable accomplishments and new initiatives within the City Manager’s Budget Message
• Summarize high-level notable accomplishments and new
initiatives into a small paragraph
• Put this paragraph in the City Manager’s Budget Message 2 Admin Services/
City Manager’s
Office

6 Elevate the Budget Overview subsection as its own section in the budget document.
• Add the existing Budget Overview subsection as it’s own new section
• Include the following subsections:
o Budget Roadmap,
o Changes to the Budget and Policies,
o Budget by Fund,
o Service-Level Reductions,
o Special Projects,
o Current Economic Update,
o Key Budget Assumptions, and
o Ongoing Challenges
2 Admin Services

1Priority 1: Important to accomplish without delay and/or easy to accomplish.

Priority 2: Second tier of importance to accomplish and/or may involve some complexity or time to complete.

Priority 3: Least urgent to complete and/or may take longer to set-up or to execute. 2To establish clear accountability there should be a single manager assigned responsibility for completing implementation of each recommendation. Where more than one manager is identified in this column, responsibility should be clarified when the Final Action Plan is prepared.
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City of Cupertino – Budget Document Improvements and Performance Measures
Draft Implementation Action Plan Baker Tilly

2 Rec
No. Recommendation Implementation Steps Priority1
Department
Responsible2 Comments
7 Report Department reductions at the summary level and refer to the Department section for further detail.
• Use the newly created Budget Overview section in
Recommendation #6 to create a four page narrative
• Refer to the individual Department sections for further detail 2 Admin Services
8 Complete and publish the FY 2024-25 Budget at a Glance document to summarize the budget for the casual user.
• Publish the above four page narrative from Recommendation #7 as a separate City’s Budget at a Glance document
2 Admin Services
9 Move the Mission Statement to the strategic goals section. • Move the Mission Statement from the Budget Guide section to the Strategic Soals section.
2 Admin Services
10 Move the Elements of the Budget Document, Glossary of Budget Terminology, Commonly Used Acronyms, and
Revenues/Expenditures/Fund Balance Table to the Appendix. • Move the following Elements of the Budget Document to the appendix
o Glossary of Budget Terminology
o Commonly Used Acronyms
o Revenues/Expenditures/Fund Balance Table
2 Admin Services
11 Eliminate the City Profile, Education, Programs and Applications, Community and Recreation Services and Things to Do and See subsections of the Community Profile section from the budget document.
• Remove the following subsections of the Community Profile section
o City Profile
o Education
o Programs and Applications
o Community and Recreation Services
o Things to Do and See
2 Admin Services
12 Update all policies to provide a summary of the policy and include a link to the official policy on the City’s website.
• Remove the full financial policies from the budget document • Include a summary of the relevant financial policies and a link to the full policy on the City’s website
3 Admin Services
13 Eliminate the Flow of Funds Chart and replace it with a narrative description of how taxes are used to fund City services within the Budget Overview section of the budget.
• Eliminate the Flow of Funds Chart in the All Funds Financial Schedule section
• Include a narrative of how taxes are used to fund City services within the Budget Overview section
3 Admin Services
14 Revise the General Fund Contribution Schedule subsection to include a brief narrative of General Funds resources that are being contributed to other funds, refer to the General Fund Transfers subsection, and eliminate the existing table.
• Develop a draft narrative summary for City Manager’s Office review and feedback
• Eliminate the existing table of the General Fund Contribution Schedule in the General Fund Financial Schedules sections • Refer to the General Fund Transfers subsection in the narrative 2 Admin Services
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City of Cupertino – Budget Document Improvements and Performance Measures
Draft Implementation Action Plan Baker Tilly

3 Rec
No. Recommendation Implementation Steps Priority1
Department
Responsible2 Comments
• Publish the updated section for incorporation into the annual budget document
15 Refer the reader to the Department section or OpenGov for further detail.
• Review architecture and links in OpenGov to ensure accuracy and usability of financial schedules that provide the same or similar information as in the current budget document
• Make revisions to OpenGov as required
• Modify text references in the General Fund Financial Schedules section in each department to direct readers to the department sections, appendix and/or OpenGov
• Condense Revenues section detail
• Add reference to Open Gov to show further detail
2 Admin Services
16 Condense the General Fund Revenues to provide an overview of the key revenue sources, and include the more detailed descriptions and analysis in the General Fund Forecast subsection.
• Develop a revised draft of a condensed General Funds revenue section (e.g., start with an outline, then complete a draft based on prior budget)
• Move the more detailed descriptions and analysis in the General Fund Forecast subsection
• Ensure consistency in formatting and align structure across both sections for clarity
• Publish the updated section as part of the draft budget 2 Admin Services
17 Review each Department section to include the following components:
1) Department description; 2) Organizational chart (by division/program including number of assigned personnel FTE equivalents); 3) Personnel summary (subtotals by position); 4) Key priorities, with emphasis on how they achieve the citywide strategic plan/priorities; 5) Performance measures with a reference to key departmental priorities and citywide strategic plan/priorities; and 6) Revenue and Expenditure summary by division/program and by expenditure type (personnel costs, materials and services, capital outlay, etc.).
• Review each Department section to ensure there is consistency in including the following components:
o Department description
o Organizational chart
o Personnel summary
o Key priorities
o Performance measures
o Revenue and Expenditure summary
3 Admin Services
18 Eliminate the program budget information in the Department sections and refer the user to OpenGov to obtain further detail. • Eliminate the program budget information in the departmental sections
• Add reference to Open Gov for the reader to obtain further detail at the program budget level
2 Admin Services
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City of Cupertino – Budget Document Improvements and Performance Measures
Draft Implementation Action Plan Baker Tilly

4 Rec
No. Recommendation Implementation Steps Priority1
Department
Responsible2 Comments
19 Develop a minimum five-year Capital Improvement Plan (CIP) and incorporate the CIP plan into the budget document.
• Develop the Capital Improvement Plan should be created and include the following elements:
o CIP Overview
o CIP Process that explains the definition of a
project and the planning process
o Project descriptions
o Financial Summary by Year
o Funding Availability
• The CIP should be included as part of the annual budget with similar timelines so that the recommended operating and capital budgets are published within the budget schedule.
2 Public Works/
Admin Services

20 Affirm primary responsibility and lead role of the development of the CIP Plan to Public Works as a shared responsibility and collaboration with other departments.
• Assign the lead role of development of the CIP to the Public Works Department
• Conduct cross-departmental CIP meetings to ensure input is received
• Develop a department coordination framework that defines roles, responsibility for input and collaboration
• Discuss and disseminate the framework with departments. • Conduct periodic check-ins on CIP plan development to include the City Manager, and representatives from Public Works and Administrative Services
1 City Manager’s
Office, delegated
to Public Works

21 Assign compilation and publication of the CIP Plan section of the budget document to the Administrative Services Department’s Budget division. • Assign the lead role of compilation and publication of the CIP to the Admin Services Department
• Standardize CIP formatting and structure to ensure consistency in CIP descriptions, budget projections and reporting
• Establish a review and submission timelines for the draft and final CIP version in the context of the broader budget process • Collaborate with Public Works to inform final development of the finalized CIP plan
• Incorporate the capital budget in the recommended budget document.
1 City Manager’s
Office, delegated
to Admin Services

22 Complete the FY 2024-25 Capital Budget and issue as Volume 2 of the current adopted budget.
• Complete the FY 2024-25 Capital Budget already in progress (performed by Public Works)
1 Public Works/
Admin Services

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City of Cupertino – Budget Document Improvements and Performance Measures
Draft Implementation Action Plan Baker Tilly

5 Rec
No. Recommendation Implementation Steps Priority1
Department
Responsible2 Comments
• Issue the Capital Budget as Volume 2 of the current adopted budget.
23 Provide clear quarterly tracking of CIP priorities, progress, and alignment with Council work programs.
• Develop a quarterly reporting framework to define reporting element such as progress tracking, estimated time of
construction and completion, and tracking against budget • Establish a reporting calendar to set quarterly review deadlines on City Council agendas
• Implement the CIP progress reporting
• Check-in with City Council and department leaders to evaluate CIP progress reporting and opportunities to improve it
3 City Manager’s
Office, delegated
to Public Works

24 Create a detailed appendix for fund transfers, enterprise funds, and grant funding usage.
• Create a framework to report the following:
o Fund transfers
o Enterprise funds
o Grant funding
• Compile the fund transfer and grant data to document all sources and uses of funds
• Publish the developed report(s)
2 Admin Services
25 Ensure all appropriated funds and consulting services are tracked and reported against original purposes.
• Review current trancking mechanisms and implement any necessary changes based on feedback received from City
Councilmembers regarding past reports
• Review the current expense report that shows budget and actual expenditures for all appropriated funds
• Create a report in OpenGov that highlights the consulting services expenses compared to the original budget.
• Keep clear documentation of all consulting services budgets. 3 Admin Services
26 Develop and implement a Special Projects policy to address such issues as definitions, approval authorities, timelines, projects spanning multiple fiscal years, budget carryovers for projects extending into a subsequent fiscal year, and periodic reporting timelines and form. • Develop a special projects policy that addresses:
o Definition of special projects
o Form of reporting
o Frequency of reporting
o Follow-up on items and direction from City
Council
3 City Manager’s
Office

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City of Cupertino – Budget Document Improvements and Performance Measures
Draft Implementation Action Plan Baker Tilly

6 Rec
No. Recommendation Implementation Steps Priority1
Department
Responsible2 Comments
27 Review the City’s annual budget resolution and/or expenditure and budget policies to ensure they align with City Council authorities provided to the City Manager or designee in managing the annual budget, including use of contracted and/or consulting servi ces to achieve the City’s annual service delivery goals expressed in the adopted budget.
• Review the City’s annual budget resolution and/or expenditure and budget policies to ensure the following:
o Authorities provided to the City Manager
o Use of contracted or consulting services
• Make any changes or updates as needed
1 City Manager’s
Office

28 Review the City’s current budget community engagement strategy with the City Council to ensure it is successfully meeting the needs for identifying community priorities and to inform the community about how City services are funded.
• Present the City’s current budget community engagement strategy to the City Council
• Solicit feedback on additional community engagement strategies • Make any changes or updates as needed
1 City Manager’s
Office

29 Review educational content on the budget’s role as a financial planning tool and document in light of any changes to the engagement strategy using easy-to-understand content and graphics.
• Review the proposed changes to the community engagement strategies
• Update educational content and engagement strategy with easy- to-understand content and graphics based on proposed changes 1 Admin Services/
City Manager’s
Office

30 Leverage tools like OpenGov to create interactive, department-focused summaries for each user type including the community, council and staff.
• Review the current OpenGov design and layout for departments and solicit feedback for improvements
• Move the current year so the newest information is listed first on the main page
• Develop content based on the needs of the community and council
• Include links in the budget document to OpenGov to create more tailored content
1 Admin Services
31 Develop a citywide strategic plan that includes a review of the core values, mission and vision by the City Council to form the appropriate strategic goals and priorities for the organization and its operating departments.
• Determine if the strategic plan will be done with assistance from consultants or in house
• Work with City Council to create a city-wide strategic plan according to the following framework
o Core Values
o Mission
o Vision
o Organizational Goals
o Organizational Strategies
o Strategic Priorities
o Personal Priorities
1 City Manager’s
Office

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City of Cupertino – Budget Document Improvements and Performance Measures
Draft Implementation Action Plan Baker Tilly

7 Rec
No. Recommendation Implementation Steps Priority1
Department
Responsible2 Comments
• Incorporate strategic plan into planning for the budget document and performance measures
32 Establish performance standards for each performance measure and reevaluate at least biennially.
• Review Baker Tilly’s suggested performance measures by Department
• Obtain City Council approval on the set of performance measures to be implemented, informed by the Baker Tilly report and any subsequent creation of a citywide strategic plan • Identify roles and responsibilities within each department to identify the metrics to be tracked, gather the data, and develop the reports
• Implement a tracking mechanism by developing a reporting structure to monitor compliance and effectiveness (e.g., quarterly, semi-annually)
• Create a process for reviewing performance and updating performance measures with the City Council periodically (semi- annually) and as part of the annual budget process
1 City Manger’s
Office, delegated
to each
department

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CITY OF CUPERTINO
Agenda Item
24-13302 Agenda Date: 3/4/2025
Agenda #: 8.

Subject: Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25; Budget Modification No. 2425-383, increasing appropriations by $4,161,892 and revenues by $4,115,183.

1. Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25

2. Adopt Resolution No. 25-018 approving Budget Modification No. 2425-383, increasing appropriations by $4,161,892 and revenues by $4,115,183.

CITY OF CUPERTINO Printed on 2/26/2025Page 1 of 1
powered by Legistar™
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CITY COUNCIL STAFF REPORT
Meeting: March 4, 2025

Subject
Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25

Recommended Action

1. Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2024-25

2. Adopt Resolution No. 25-XXX approving Budget Modification No. 2 425-383, increasing appropriations by $4,161,892 and revenues by $4,115,183.

Executive Summary
The Mid-Year Financial Report for Fiscal Year (FY) 2024-25 outlines the City’s financial status as of December 31 , 2024. The City has updated its 10- Year financial forecast and , due to significant changes in revenues and expenditures assumptions, is forecasting to be structurally sound with no deficits through FY 2033-34. The details are discussed later in the report.

The FY 2024-25 Amended Budget is $217.4 million, increasing from an adopted budget of $146.6 million due to carryovers and encumbrances from the last fiscal year, in addition to Council-approved budget adjustments.

As of Mid-Year FY 2024-25, revenue was $5.3 million, or 11%, lower than Mid-Year 2023- 24, primarily attributed to a significant decrease in reported sales tax due to a shift to cash basis accounting for interim reports as recommended by the City’s financial auditors, The Pun Group. While this change enhances cash flow accuracy, it may limit comparability with FY 2023 -24. This decrease is offset by an increase in use of money and property primarily due to the reversal of the $2.8 million mark-to-market adjustment recorded as a year-end entry in FY 2023-24, resulting in a temporary positive revenue impact in FY 2024-

25. Mid-Year expenditures were $10.3 million, or 22% higher than last year, primarily due to a City Council approved one -time Additional Discretionary Payment to CalPERS to address the City’s Unfunded Accrued Liability retirement costs.

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2 Key recommendations from the report include the following proposed budget adjustments:

• Increase Capital Reserve to meet the minimum reserve levels per policy and restart annual Capital Reserve funding transfers;
• Funding for additional executive recruitment; and
• Funding for the purchase of a new lawn mower.

Reasons for Recommendation
Background
On June 4, 2024, the City Council adopted the FY 202 4-25 Adopted Budget, a $ 146.6 million spending plan funded by $1 39.3 million in revenue and $ 7.3 million in fund balance. The adopted budget reflected a $102,805 increase from the proposed budget.

As described in the City Manager’s First Quarter Financial Report, the budget was revised to account for encumbrances and carryover appropriations .1 As part of the FY 2023-24 year-end close, additional funds were carried forward to FY 2024-25, amounting to $ 9.0 million in encumbrances and $6 1.1 million in budget carryovers. The largest encumbrances were for General Fund ($4.8 million), and the largest carryovers were for General Fund ($24.3 million) and are largely related to The Rise Project.

Furthermore, the FY 2024-25 Amended Budget as of December 31, 2024, includes Council- approved budget adjustments from July 1 to December 31, 2024, for a total of $227,801,053 across all funds.

The amended budget at the end of mid-year is $227.8 million, funded with $175.0 million in revenue and $52.8 million in fund balance. The amended budget is the adopted budget, plus encumbrances, carryovers, and Council -approved budget adjustments . The reflection of carryovers and encumbrances in the amended budget is a standard practice in municipal budgeting and aligns with the amounts in previous years, which have been approximately $80 million. Carryovers and encumbrances are appropriations approved in prior years but have not yet been spent and are still required for ongoing projects or obligations.

1 Encumbrances are outstanding commitments ti ed to unfilled purchase orders or contracts, which are rolled over to the following fiscal year until those obligations are fulfilled or terminated. Carryover appropriations are unencumbered funds for unfinished projects carried over to the following fiscal year to be spent for the same purpose for which they were approved. Carryovers can be found in the Q1 financial report presented to City Council on December 3, 2024.

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3 Mid-Year Summary of Budget Adjustments by Fund

Fund
FY 2024-25
Adopted
Budget Carryovers Encumbrances
Adjustments
Approved in 1st
and 2nd Quarters
FY 2024-25 Amended
Budget as of
December 31, 2024
General 90,041,794 24,271,306 4,753,530 10,729,524 129,796,154 Special Revenue 13,956,348 15,445,956 885,056 374,115 30,661,475 Debt Service 2,676,200 - - - 2,676,200 Capital Projects 22,057,580 20,678,417 2,449,854 300,000 45,485,851 Enterprise 9,271,222 522,360 55,396 20,545 9,869,523 Internal Service 8,643,349 151,167 837,023 (299,998) 9,331,541 Total All Funds 146,646,493$ 61,069,206$ 8,980,859$ 11,124,186$ 227,820,744$ 110
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4 Discussion
The Mid-Year Financial Report, reported as of December 31, 2024, is a critical tool for the City to evaluate its current revenue outlook and make necessary adjustments to the budget in response to changing spending priorities. It provides an overview of the City's budget status, including its revenue outlook, expenditure patterns, and other key financial metrics. Additionally, the report helps the City ensure that it stays on track toward achieving its goals and objectives by providing valuable insights into the City's financial performance. By using this information to make informed decisions and take appropriate actions, the City can maintain its fiscal sustainability.

The largest request at mid-year is related to fully funding the Capital Reserve to policy levels and a few other minor requests for funding. Transferring unassigned fund balance dollars from the General Fund to the Capital Reserve does not allocate those funds for spending, which is done as part of the Capital Improve ment Plan process or via a staff report.

The City will continue to closely monitor revenue and expenditure trends in the coming months. This ongoing analysis is critical to ensuring that the City's budget remains responsive to the needs of its constituents and is aligned with the City's goals and objectives. By proactively managing its budget, the City can remain fiscally responsible and provide essential services and programs to its community.

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5 General Fund
Forecast
The City had previously forecasted a structural deficit in the last six years of its ten- year financial forecast. As shown in the graphic below, the City’s deficit began in FY 2029, primarily due to the reinstatement of a $2 million transfer to the Capital Reserve to fund future capital improvement projects. In FY 2030, the deficit grows as the Utility User Tax sunsets, resulting in a loss of approximately $4 million annually. However, this impact is partially offset by the full repayment of debt in FY 2031. From then, ongoing increases in expenditures outpace revenues resulting in a growing deficit.

Due to the settlement agreement with California Department of Tax and Fee Administration (CDTFA) and other adjustments to forecast assumptions, the City is now forecasting to be structurally sound for the next 10 years. The table below describes how the funding gap closed.

In FY 2023- 24, $15.1 million in reductions was achieved by reducing materials and contracts and eliminating 13 vacant positions. In FY 2024- 25, the reduction focus shifted from category to service-level reductions, resulting in $8.7 million in savings. The majority of the savings came from aligning the budgets to actual expenditures and reducing annual Capital Improvement funding. These efforts resulted in $23.8 million in total reductions.

In addition, refinements to the City’s budget forecast had a net positive impact further improving the City’s long- term financial outlook. Budget reductions are detailed in the table below:

-$0.2M
$0.7M
$1.1M
$0.3M
-$0.4M
-$2.8M -$3.1M
-$5.2M
-$6.2M
-$7.2M
General Fund Annual Operating Surplus/(Deficit)
6 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
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6 Budget Reductions FY 2023-24 and FY 2024-25
Category FY24

Summary
Materials & Contracts $5.5M

Reductions across departments, most notably
reductions to street pavement maintenance and
training and development
Staffing $2.4M

13 FTE positions
Transfers2 $5.8M

Reduced Transfers out to other funds
Capital Outlays, Special
Project, Contingencies and
Cost Allocations2
$1.4M

Reduced all categories listed
FY24 Reductions $15.1M

Category

FY25

Community Benefits

$0.1M 4th of July Fireworks
Fiscal Accountability

$2.8M Align Law Enforcement costs with actuals, ERP,
and legal costs
Infrastructure

$2.9M No CIP reserve transfer and tree maintenance
moved inhouse
Operations and
Maintenance

$2.9M Elimination of two Project Managers and
reduction of part-time staff. Includes additional
materials and contract reductions.

Total FY25 Reductions

$8.7M
TOTAL REDUCTIONS ALL YEARS $23.8M

2 Transfers and Capital outlay, special projects etc. were not previously included in reduction discussions after the proposed budget as they did not result in a service level reduction. These are included to show the full budget reductions made, with exception of use of fund balance.

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7 Changes since FY 2024-25 Final Budget

Since the forecast was last presented to City Council as part of the FY 2024- 25 Final Budget, we have gained clarity on a number of budget -related items, including the CDTFA Audit resolution and water system lease revenues. Additionally , City Council approved a one-time additional discretionary payment (ADP) to CalPERS for the City’s retirement system of $10 million dollars, which has had a significant impact on the forecast.

Furthermore, staff have made additional refinements to the forecast to better align with historical actuals in property tax and Franchise fees, and made changes to the employee vacancy rate to better align it with historical employee vacancy savings. The table below summarizes these changes and their impact, comparing the FY 2024- 25 Final Budget Forecast with the FY 2024-25 Mid-Year Forecast.

FY26 and FY34 Projection Changes by Category: Final Budget vs Mid-Year Forecasts ($ in millions)

FY25 Final
Budget 10 Year
Forecast
FY25 Mid-Year 10 Year Forecast Changes
FY25 Mid-Year
Budget
Outcome
$7.20 Million
Deficit
Expenditure
decreases
of ($1.77)
million
$0.52 million
Surplus
Revenue
increases of
$5.95 million
- =
Expenditure Categories Changes in FY26 of the Forecast Changes in FY34 of the Forecast Employee compensation & benefits (2.39)$ (1.77)$ 45 - Transfer out 2.00$ -$ Total Expenditure Changes (0.39)$ (1.77)$ Revenue Categories
05 - Sales Tax (0.04)$ (0.05)$ 10 - Property Tax 1.11$ 1.40$ 15 - Transient Occupancy (0.46)$ (0.54)$ 25 - Franchise Fees 0.82$ 0.92$ 40 - Use of Money and Property 0.17$ 2.32$ 60 - Miscellaneous 1.85$ 1.84$ Total Revenue Changes 3.49$ 5.95$ Net Impact 3.88$ 7.72$ 114
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8 The table above compares the original forecast presented as part of the FY 2024-25 Final Budget to the updated FY 2024-25 Mid-Year forecast. These numbers were calculated by comparing both forecasts at the category level. Both FY 2025-26 and FY 2033-34 forecast are compared to show how impacts either increase or decrease in the forecast.

Revenues
Sales and Transient Occupancy Tax are decreasing just over $500,000 in FY 2025-26 and just under $600,000 in FY 2033- 34. This decline is primarily driven by updated forecast projections based on prior year actuals.

Property Tax and Franchise Fees are increasing by about $1.9 million dollars in FY 2025-26 and $2.3 million in FY 2033- 34, reflecting refinements in the forecast to better align with the prior year actuals. The growth trend is expected to continue throughout the forecast.

Use of Money and Property is increasing due to the City’s improved financial position. With more years in the positive than in a deficit this results in more funds or fund balance available for the City to invest. The additional fund balance contributes to higher interest earnings, as more funds are available for investment. The increase is reflected throughout the forecast, with estimated increases in FY 2025-26 of $170,000, growing by $2.32 million in FY 2033-34, as fund balances continue to rise.

Miscellaneous Revenue is increasing due to the City’s new water system lease agreement, which provides approximately $1.8 million in annual revenues for the life of the 12 -year contract with San Jose Water Company. These revenues began in the current fiscal year, FY 2024-25, and will conclude in FY 2036-37, which is beyond the current forecast.

Expenditures
Employee Compensation and Benefits is decreasing by $2.39 million in FY 2025-26 and $1.77 million in FY 2033-34. This reduction is primarily due to aligning FY 2024- 25 projections with the adopted budget, the one -time Additional Discretionary Payment (ADP) to CalPERS to reduce the City's Unfunded Accrued Liability (UAL), and an increase in the assumed vacancy rate to 4%. The gradual decline in annual savings over the forecast period is attributed to CalPERS UAL payments stabilizing and aligning more closely with the initial forecast.

Transfers out is increasing in the FY 2025-26 to account for the recommendation in this staff report to begin funding the Capital Reserve sooner than previously anticipated. Since this funding was already included in the later years of the original forecast, there is no impact in FY 2033-34.

Although this is great news, the City must remain cautious, as expenditure growth outpaces our revenues, leading to a decreasing surplus figure in the later years of the 115
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9 current forecast. To maintain long-term financial stability, the City will likely need to seek further reductions and/or revenue enhancements in the near future.

Updated 10-Year Forecast as of FY 2024-25 Mid-Year Financial Report After applying the changes noted in the section above, the City’s financial forecast has significantly improved. What was previously a deficit in over half the forecast is now positive throughout the entire forecast period. Additionally, the forecast allows for resumption funding of the Capital Improvement at $2 million annually beginning in FY 2024-25 versus FY 2028- 29. Th ese positive changes in our forecast reflects the work the City Council, Community, and staff have put into solving the unprecedented loss of $30 million in revenue and subsequent structural deficit

However, we recommend proceeding with caution as our forecast show s that our expenditure growth outpaces revenue growth, as shown with declining budget surpluses throughout the forecast. As we move forward in this year’s budget process along with next year’s proposed and final budget, the focus should be on limiting ongoing expenses and focusing on one -time costs. The C ity should continue to pursue revenue enhancements such as fee increases and tax measures and look to reduce costs w here feasible, with a goal of having growing surpluses in out-years versus declining, a sign that the city is fiscally sound into the future.
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10 General Fund at Mid-Year

4-Year Comparison of Revenues, Expenditures, and Changes to Fund Balance ($ in millions)

The General Fund's year -end actuals show that the City’s revenues have historically exceeded expenditures, leading to the increase in fund balance. In addition, the City's encumbrance and budget carryover process typically led to increases in year-end fund balance. Historically, when this was not the case, it was not due to a structural deficit but the transfer of excess fund balance from the General Fund to the Capital Reserve per the City's Fund Balance policy. The updated long-term forecast discussed later in this report will show that the City expect to have positive fund balance for the next 10 years.

By continuing to monitor and manage its financial resources effectively, the City can ensure that it maintains a healthy fund balance in the General Fund.

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11 Revenue
General Fund revenue is $5.3 million, or 11%, lower than the same time last year due to changes in the City’s revenue sources as shown in the following table.

Comparison of FY 2023-24 and FY 2024-25 Mid-Year Revenues General Fund

Sales Tax revenue as of mid-year is $6.2 million, which is a 72% decrease from the previous year. This decline is primarily due to two factors. First, as noted in the First Quarter Financial Report, the City reached a settlement agreement with the CDTFA, which resulted in the cessation of previously misallocated sales tax revenue. Th e City adjusted the sales tax received to reflect the new reporting amount of $6.2 million. The CDTFA has yet to adjust any sales tax reporting as a result of the settlement. Second, sales tax revenues are received on a two-month lag, meaning the current figures account for collections from July through October 2024 (FY 2024- 25), whereas mid -year figures from the prior fiscal year (FY 2023- 24) included six months of collections, spanning July through December 2023.

For FY 2024-25, the City budgeted $11.6 million in sales tax revenue. Staff recommend s maintaining this projection to remain both conservative and realistic, as it accounts for current trends while ensuring fiscal prudence. Given that only four months of sales tax collections have been received, it is still too early in the fiscal year to make significant adjustments based on partial-year data.

Property Tax revenue is higher than last year by approximately $422,000, or 5%. According to HdL, the City’s property tax consultant, residential use values increased 5.7% for a total Revenue Category
Mid-Year
2024
Mid-Year
2025 Variance ($) Variance (%)
05 - Sales tax 22,486,303 6,253,234 (16,233,070) -72% 10 - Property tax 9,111,207 9,533,057 421,850 5% 15 - Transient occupancy 2,256,103 2,517,307 261,204 12% 20 - Utility tax 1,519,268 1,747,222 227,953 15% 25 - Franchise fees 910,438 828,043 (82,396) -9% 30 - Other taxes 656,756 903,132 246,376 38% 35 - Licenses and permits 1,859,890 2,703,734 843,845 45% 40 - Use of money and property 1,662,349 5,620,126 3,957,777 238% 45 - Intergovernmental revenue 221,695 1,593,094 1,371,399 619% 50 - Charges for services 5,705,245 7,219,090 1,513,845 27% 55 - Fines and forfeitures 118,777 157,093 38,316 32% 60 - Miscellaneous 564,192 1,445,733 881,540 156% 65 - Transfers in 111,000 15,000 (96,000) -86% 70 - Other financing sources - 1,331,275 1,331,275 N/A Total 47,183,225$ 41,867,139$ (5,316,086)$ -11% 118
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12 of $1.147 billion and represented 81% of all growth experienced in the City. The citywide growth in value in the 2024-25 assessment roll is $1.412 billion, an increase of 4.4%. Staff will continue to monitor this top revenue source and may recommend adjustments as part of the Third Quarter Financial Report.

The City’s property tax base remains strong , and HdL is currently projecting growth in property taxes over the next five years, as shown in the table below.

Transient Occupancy Tax (TOT) revenue increased by $261,000, or 12%, compared to the previous year due to the remittance of taxes from a hotel in Cupertino during the current mid-year period that were not received in the pr evious year. Although an increase is reflected here, business travel has not returned compared to pre -pandemic levels.

According to HdL, occupancy is improving a couple of percentage points each year, however, the Average Daily Rate may still be too low, compared to prior years. So, while the Average Daily Rate is increasing, it doesn't appear that it is driven by demand.

FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28
31,223,141 32,324,317 33,606,651 35,024,886 36,531,087 119
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13 Average Daily Rates and Occupancy Rates by Month
Hotels in Cupertino

Although TOT revenues have mostly recovered from the pandemic, the City's TOT revenues may continue to be affected in the long term due to telework and decreased business travel. Headwinds in t he tech industry have resulted in layoffs and reduced spending in areas such as travel. Staff will continue to monitor economic regulations and other factors and report back on their impact on TOT revenues as part of the quarterly financial reports.

Utility Tax (UUT) increased by approximately $228,000, or 15%, primarily due to an increase in the amount of UUT collected based on higher gross receipts compared to the same period in the prior year.

Franchise Fees decreased by approximately $82,000, or 9%, due to a one-time overpayment reflected in the prior mid -year period for October 2023 that was corrected with an underpayment in January 2024.

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14 Other Taxes increased by approximately $246,000, or 38%, due to increases received for the collection of business license taxes and property transfer taxes.

Licenses and Permits increased by approximately $844,000, or 45%, due to construction plan check revenues for multiple large office tenant improvement submittals, an increase in residential submittals for new homes and remodels, as well as an increase in permits to clear code enforcement cases.

Use of Money and Property increased by approximately $4.0 million, or 238%, largely due to the reversal of the $2.8 million mark-to-market adjustment recorded as a year-end entry in FY 2023-24, resulting in a temporary positive revenue impact in FY 2024-25.

Intergovernmental Revenue increased by $1.4 million, or 619%, over the same period last year primarily due to the receipt of grant funds for the community shuttle.

Charges for Services increased by $1.5 million, or 27%, driven mainly by increases in cost allocation plan methodology and general service fees related to library maintenance.

Fines and Forfeitures increased by $38,000, or 32%, due to an increase in revenues related to parking fines compared to the same period last year.

Miscellaneous Revenue increased by approximately $882,000, or 156%, primarily due to the timing of the Apple donation for sheriff services.

Transfers In decreased by $96,000, or 86%, due to transfers in from other funds that occurred during the previous mid-year period.

Other Financing Sources increased by $1.3 million due to revenues received from the Byrne property transaction.

Expenditures
Expenditures in the General Fund have increased by $10.3 million, or 22%, when compared to the same time last year. The following table shows the differences between General Fund expenditures as of the mid-year in the current fiscal year and the prior fiscal year:
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15 Comparison of FY 2023-24 and FY 2024-25 Mid-Year Expenditures General Fund

Salary decreased by approximately $0.5 million, or 5%, from the previous mid-year period due to vacancy savings.

Benefits increased by approximately $10.6 million, or 227%, from last year primarily due to a City Council approved one -time Additional Discretionary Payment to CalPERS to address the City’s Unfunded Accrued Liability retirement costs. In addition, increases in retirement, healthcare , and workers’ compensation cost s account for the remaining increase.

Materials increased by approximately $ 326,000, or 13%, primarily due to increases in electrical costs and general supplies.

Contract S ervices increased by approximately $424,000, or 3%, primarily driven by insurance premium increases , paid claims, settlements, and law enforcement contract costs.

Cost Allocation increased by approximately $190,000, or 4%, primarily due to increased Cost Allocation Plan (CAP) charges.
3 3 The cost allocation plan (CAP) allocates indirect and overhead costs to the departments that benefit from them. Costs incurred by central service providers (e.g., City Manager's Office, City Attorney's Office, Finance, Human Resources, Facilities, etc.) are charged to the departments that benefit from the services (e.g., Parks & Recreation). The purpose of the CAP is to help the City to determine the true cost of providing services.

Expenditure Category
Mid-Year
2024
Mid-Year
2025 Variance ($) Variance (%)
05 - Employee compensation 11,096,489 10,566,467 (530,022) -5% 10 - Employee benefits 4,664,982 15,264,471 10,599,488 227% 15 - Materials 2,487,504 2,813,766 326,262 13% 20 - Contract services 13,833,030 14,256,813 423,784 3% 25 - Cost allocation 5,128,828 5,319,290 190,462 4% 30 - Capital outlays 421,523 32,349 (389,174) -92% 31 - Special projects 1,909,536 623,226 (1,286,311) -67% 35 - Contingencies - 3,035 - N/A 45 - Transfer out 6,595,284 7,403,168 807,884 12% 50 - Other financing uses 102,412 247,521 145,109 142% Total 46,239,589$ 56,530,107$ 10,287,483$ 22% 122
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16 Capital Outlay decreased by approximately $389,000, o r 92%, due to the security gate project at the Service Center in the prior year.

Special Projects decreased by approximatel y $1.3 million, or 67%, primarily due to I- 280/Wolfe Road Interchange Improvement.

Contingencies remain relatively unchanged from last year.

Transfers Out increased by approximately $808,000, or 12%, due to the increase of transfers for retiree medical due to the use of the Other Post Employment Benefits Trust paying for the last two year s. Interfund transfers are the movement of cash between one or more funds. As part of the Adopted Budget process, transfers from the General Fund to other City funds serve as operating subsidies to ensure each fund has a positive fund balance at the end of the fiscal year.

Other Financing Uses increased by approximately $145,000, or 142%, due to a higher volume of on-call contracts in the Community Development Department for plan reviews and inspections.

Special Revenue Funds
Revenue
Special Revenue Funds revenue is $0.2 million, or 4%, higher than the same time last year primarily due to an increase in use of money and property and intergovernmental revenue.

Comparison of FY 2023-24 and FY 2024-25 Mid-Year Revenues Special Revenue Funds

Other Taxes decreased by approximately $119,000, or 58%, primarily due to decreased park dedication fees received in the prior mid-year period for Alan Row.

Revenue Category
Mid-Year
2024
Mid
-Year
2025 Variance ($) Variance (%)
30 - Other taxes 205,602 86,517 (119, 085) -58% 40 - Use of money and property 348,511 1,116,291 767,779 220% 45 - Intergovernmental revenue 3,031,052 3,527,541 496,489 16% 50 - Charges for services 76,061 54,491 (21,570) -28% 55 - Fines and forfeitures 156 - (156) N/A 60 - Miscellaneous 4,304 200 (4,104) -95% 65 - Transfers in 3,449,019 2,595,150 (853,869) -25% Total 7,114,705$ 7,380,189$ 265,485$ 4% 123
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17 Use of Money and Property increased by approximately $768,000, or 220%, primarily due to the mark-to-market adjustment, mirroring the impact seen in the General Fund.

Intergovernmental Revenue increased by approximately $0.5 million, or 16%, due primarily to transportation related federal grants.

Charges for services decreased by approximately $22,000, or 28%, primarily due to general fee revenues received for environmental storm drain clean-up reimbursement received.

Fines and forfeitures were relatively unchanged from last year.

Miscellaneous revenues were relatively unchanged from last year.

Transfers In decreased by approximately $854,000, or 25%, due to decreased transfers in from general fund for street and sidewalk maintenance as part of service level reductions.

Interfund transfers are the movement of cash between one or more funds. As part of the Adopted Budget process, transfers from the General Fund to other City funds serve as operating subsidies to ensure that each fund has a positive fund balance at the end of the fiscal year. Additionally, when Capital Improvement Program (CIP) projects are authorized by City Council, a transfer from the Capital Reserve to the appropriate fund is necessary to record the costs and activities of the project. For more informati on on the City’s operating and capital transfers, refer to pages 625-627 and 631-632 of the FY 2024- 25 Adopted Budget.

Expenditures
Special Revenue Funds expenditures are $1.8 million, or 30%, lower than the same time last year due primarily to decreases in capital outlays and special projects.

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18 Comparison of FY 2023-24 and FY 2024-25 Mid-Year Expenditures Special Revenue Funds

Salary decreased by approximately $37,000, or 4%, due to vacancy savings.

Benefits increased by approximately $56,000 o r 15%, from last year due to increases in health care premiums and retirement costs.

Materials decreased by approximately $33,000, or 12%, due to decrease s in BMR and CDBG expenditures compared to the same period last year.

Contract Services decreased by approximately $256,000, or 53%, primarily due to annual sidewalk curb and gutter maintenance.

Cost Allocation increased by approximately $405,000, or 66%, primarily due to increased City Manager and Human Resources CAP Charges.

Capital Outlays decreased by approximately $794,000, or 39%, due to decreases in Facility Improvements and SB1 Road.

Special Projects decreased by approximately $ 758,000, or 86%, due to decreases in the annual asphalt project.

Transfers Out decreased by $368,000, or 96%, due to reduced transfers for CIP projects.

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19 Debt Service Funds
Revenue
Debt Service Funds revenue is similar to last year.

Comparison of FY 2023-24 and FY 2024-25 Mid-Year Revenues Debt Service Funds

Expenditures
Debt Service Funds expenditures are similar to last year.

Comparison of FY 2023-24 and FY 2024-25 Mid-Year Expenditures Debt Service Funds

Capital Projects Funds
Revenue
Capital Projects Funds revenue is higher than last year primarily due to transfers in.

Comparison of FY 2023-24 and FY 2024-25 Mid-Year Revenues Capital Projects Funds

Capital Projects funds differ from year to year based on projects that have been approved or worked on in a given fiscal year.

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20 Expenditures
Capital Projects Funds expenditures are $4.8 million, or 83%, higher than last year due to an increase in transfers to fund capital projects.

Comparison of FY 2023-24 and FY 2024-25 Mid-Year Expenditures Capital Projects Funds

Capital Projects funds differ from year to year based on projects that have been approved or worked on in a given fiscal year.

Enterprise Funds
Revenue
Enterprise Funds revenue is $ 66,000, or 2%, lower than the same time last year due primarily to a reduction in service fee charges.

Comparison of FY 2023-24 and FY 2024-25 Mid-Year Revenues Enterprise Funds

Use of Money and Property increased by approximately $99,000, or 30%, due to increased field rental permit revenue.

Charges for services d ecreased by approximately $668,000, or 21%, primarily due to a reduction in enterprise service fees.

Miscellaneous decreased by $11,300, or 100%, primarily due to stormwater pollution remediation recovery received during the prior mid-year period.

Transfers In increased by approximately $0.5 million due to transfers from the General Fund.

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21 Expenditures
Enterprise Funds expenditures are $0.7 million, or 16%, lower than the same time last year due primarily to a decrease in contract services.

Comparison of FY 2023-24 and FY 2024-25 Mid-Year Expenditures Enterprise Funds

Salary and Benefits increased by approximately $224,000, or 19%, primarily due to health insurance premiums and retirement costs.

Materials increased by approximately $49,000, or 32%, primarily due to software and Cal Recycle payment program administration expenses.

Contract Services decreased by approximately $1.0 million, or 46%, primarily due to the restructuring of the Lifetime Tennis contract at the Sports Center.

Cost Allocation increased by approximately $319,000, or 68%, primarily due to increased City Manager CAP allocation and Finance cost allocation.

Special Projects d ecreased by approximately $0.25 million, or 69%, due to projects that differ in scope and timing from year to year.

Internal Service Funds
Revenue
Internal Service Funds revenue is $1.6 million, or 46%, higher than the same time last year due to increased transfers in.

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22 Comparison of FY 2023-24 and FY 2024-25 Mid-Year Revenues Internal Service Funds

Use of Money and Property increased by approximately $108,000, or 141%, due to increased interest earnings from the City’s investment portfolio and mark-to-market adjustments.

Charges for Services increased by approximately $321,000, or 15%, primarily due to Innovation Technology related Cost Allocation charges.

Transfers In increased by approximately $1.0 million, or 68%, due to increased transfers from the General Fund to the Innovation & Technology and Compensated Absences Fund.

Other Financing Sources increased by about $252,000 due to workers compensation charges being billed to departments and received as revenue in this fund. In FY 2023-24, the fund had enough savings to cover the workers compensation fund , and therefore no revenue was collected.

Expenditures
Internal Service Funds expenditures are $290,000, or 8%, lower than the same time last year due primarily to a decrease i n materials and salaries , offset by increases in cost allocation and contract services.

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23 Comparison of FY 2023-24 and FY 2024-25 Mid-Year Expenditures Internal Service Funds

Salary decreased by approximately $157,000, or 16%, due to vacancy savings. This is offset by a $55,000 increase in benefit costs.

Materials decreased by $ 259,000, or 41%, main ly due to a decrease in small tools and equipment costs.

Contract Services are up approximately $ 115,000, or 15%, largely due to an increase in general service agreements.

Cost Allocation increased by approximately $123,000, or 428%, primarily due to Innovation Technology and Finance related CAP charges.

Special Projects decreased by approximately $91,000, or 27%, due to projects that differ in scope and timing from year to year.

Transfers Out decreased by $76,000, or 100% , due to Innovation Technology related transfers that occurred in the prior mid-year period.

Budget Adjustment Requests
The City's departments regularly evaluate their budget expenditures throughout the fiscal year to ensure they stay within their budget appropriations. In case of any variance, they can request budget adjustments as necessary as part of the quarterly reports.

The budget adjustment requests are summarized in the table below and are also provided in this report as Attachment D.

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24 I&T - Video & Admin - PT salary transfers
Staff is requesting salary transfers to cover administrative support for the department during the Management Analyst’s upcoming leave of absence.

Executive Recruitment – Assistant City Manager and City Attorney Staff requests additional funds to be used for the executive recruitment of an Assistant City Manager and City Attorney. The cost of engaging an Executive Search Firm for executive-level recruitment can vary, but based on past experience, the average expense is approximately $25,000 per recruitment. The Human Resources budget includes only one executive level recruitment in their base budget.

Hidden Treasures Proceeds
The Hidden Treasures event at the Senior Center accepts donations from the community and, in turn, sells the donations on the last Thursday in October. The proceeds are then calculated into the costs to run the event, with the remaining amount incorporated into the Stay Active Fund. The Stay Active Fund helps members ages 50 and over remain active and engaged at the Cupertino Senior Center. This fund provides financial assistance Fund Department Reven ue Expenditure
Change in Fund
Balance Proposal

GENERAL FUND
100 General Fund Innovation & Technology - (31,564) 31,564 I&T - Admin - PT Admin Assistant 100 General Fund Administrative Services - 25,000 (25,000) Exec recruitment - Assistant City Manager & City Attorney
100 General Fund Parks & Recreation 13,619 11,188 2,431 Hidden Treasures Proceeds 100 General Fund Non-Departmental - 4,101, 564 (4,101,564) Transfer out to meet minimum capital reserve levels per policy,
re
sume annual $2 million transfer to
capital reserve and IT salary savings
to Internal Service Funds
100 General Fund Innovation & Technology - (3,481) 3,481 Partial Defund of Redesign of City Website
TOTAL GENERAL FUND 13,619 4,102, 707 (4,092,569)

CAPITAL FUNDS
429 Capital Reserve Non-Departmental 4,070, 000 - 4,070,000 Transfer in to meet minimum reserve levels per policy & resume
ann
ual $2 million transfer
TOTAL CAPITAL FUND 4,070,000 - 4,070, 000

INTERNAL SERVICE
FUNDS
610 Innovation & Technology Innovation & Technology 31,564 31,564 - I&T - Admin - PT Admin Assistant fund by GF Transfer
610 Innovation & Technology Innovation & Technology - (6,079) 6,079 Partial Defund of City Facilities Video Capture
630 Vehicle/Equip
Replacement
Pu
blic Works - 33,700 (33,700) Mower Replacement

TOTAL INTERNAL
SERVICE FUND 31,564 59,185 (27,621) TOTAL ALL FUNDS $ 4,115,183 $ 4,161, 892 $ (50,190) 131
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25 through scholarships for members to offset the cost of a Senior Center membership and registration for classes and events. This fund is also utilized to bring in specialized speakers, secure educational films, and purchase resource materials, etc., for events and programs that promote prevention and preparedness of aging issues, such as the Health Fair. Staff requests the use of the $13,619 revenue brought in during the Hidden Treasures event to reimburse the costs to run the program and continue to support the Stay Active Fund.

I&T – Partial Defund of Redesign of City Website & City Facilities Video Capture Staff is requesting the partial defund of Redesign of City Website & City Facilities Video Capture as these projects were successfully completed under budget.

Capital Funds Reserve Transfer
Staff is requesting $2.07 million in transfers to meet the minimum reserve levels per the Committed, Unassigned Fund Balance, and Use of One Time Funds Policy and resuming Capital Fund Transfer in the current Fiscal Year. In addition, staff is requesting to resume the annual Capital Reserve transfer of $2 million dollars this fiscal year due to the updated forecast versus waiting for FY29 to resume the transfer, for a total request of $4.07 million.

Mower Replacement
The proposal seeks to address the issue of an aging and inefficient EQP15 Mower, a 2015 model that has accumulated 2,114 engine hours and reached the end of its useful life. The current equipment is no longer reliable, with frequent repairs and ongoing mai ntenance becoming economically unfeasible. This situation has created operational inefficiencies and increased downtime, which hinders productivity and escalates costs. Staff requests funds for the purchase of a new mower. This investment will ensure impro ved performance, reduce maintenance expenses, and enhance operational efficiency. By replacing the outdated mower, the organization can maintain its commitment to reliable and cost-effective operations while ensuring uninterrupted service delivery.

Fund Balance
As of mid-year, staff anticipates the General Fund will end FY 2024-25 with $152.8 million in fund balance, a decrease of $17 million from the first quarter projection of $169.8. The decrease is due to the uncommitting of $10 million dollars for a one -time discretionary payment towards the City’s retirement system, CalPERS, in addition to changes in the amended budget, including adjustments being requested in this report. It is important to note that the only portion available for use, according to City policy, is unassigned funds.

Committed funds, such as the Committed for Future Use reserve are set aside for specific purposes determined by City Council resolution. Restricted funds, such as the Section 115 Pension Trust, are allocated for specific purposes stipulated by external resource providers. Assigned funds are reserved for encumbrances. Of the total fund balance, $25.3 million is unassigned and available to be used.
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26 Approximately $10.7 million of unassigned fund balance is attributed to Vallco Town Center plan check and building inspection revenues that were carried over. These revenues will continue to be carried over each year until the services are rendered, and the revenues are recognized.

General Fund Classification of Fund Balance

Per the City’s Fund Balance Policy, unassigned fund balance over $500,000 is to be used in the following order to replenish committed/restricted fund balances with any remaining balances to be placed in the Capital Reserve:

1. Economic Uncertainty Reserve

2. For Future Use

3. CalPERS Reserve (Section 115 Pension Trust)

4. Sustainability Reserve

5. Unassigned

As of mid -year, all priority areas in the General fund are fully funded. As mentioned earlier in this report minimum funding for the Capital Reserve in the Capital Reserve Fund is under funding minimums and an adjustment is being requested to bring it back in line with policy.

Staffing
As of December 31, 2024, the FY 2024-25 Amended Budget includes a total of 207 full-time equivalent (FTE) positions. No changes are recommended at mid-year.

Performance Measures & Workload Indicators
The Mid-Year Financial Report includes updated performance measures and workload indicators that are in line with the best practices of both government and private industry.

These measures have been designed to provide a comprehensive understanding of the City's performance and progress toward achieving its goals and objectives. Attachment E provides an overview of the status of the performance measures as of mid-year. This Classification
Actual
2022-23
Actual
2023-24
Adopted Budget
2024-25
1st Quarter
P rojection
2024-25
Mid-Year Year
End Projection
2024-25
Non Spendable 0.9$ 3.4$ 0.4$ 4.7$ 3.4$ R
estricted 20.7 23.3 20.7 20.7 20.7 Committed 34.1 108.6 99.0 31.1 98.6 Assigned 9.7 4.7 7.0 7.0 4.7 Unassigned 73.1 26.0 23.6 106.2 25.3 TOTAL FUND BALANCE 138.6$ 166.1$ 150.8$ 169.8$ 152.8$ 133
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27 information is critical to effective decision -making and ensures that resources are being used in the most efficient and effective way possible.

City Manager Discretionary Fund
In the FY 2024-25 Adopted Budget, City Council approved $50,000 in funding for the City Manager Discretionary Fund. The quarterly financial reports will detail the City Manager’s use of the discretionary fund and may include recommendations to replenish depending on the extent and nature of use. As of December 31, 2024, the City Manager’s Discretionary Fund has not been used.

Special Projects
The quarterly financial reports provide a status update on special projects, including the budget, amount spent, and estimated completion date. See Attachment F for FY 2024-25 special projects as of December 31, 2024.

Grants
Staff provides updates on the status of grants as part of the quarterly financial reports. As mentioned in the First Quarter financial staff report, staff will begin to provide updates only on active grants and any completed projects for which funding is yet to be received.

Active grants have not yet been fully closed out with the granting agency. Previously, staff reported on grants that have also been closed out. Also, as of Mid-Year, staff will now begin to provide information on the granting agency, grant amount spent, and grant amount remaining.

Below is a high-level summary of the grant tracking document. Please refer to Attachment G for complete grant tracking updates.

Competitive Grants Non-Competitive Grants
Active Grants 18 10
Pending Results 2 1
Total Grant Dollars Awarded $30,128,192 $1,444,913

Staff will continue to provide additional updates on the status of grants as part of the quarterly financial reports.

Capital Improvement Program
The quarterly financial reports provide a revised estimate and update on Capital Improvement Program (CIP) projects. As of mid -year, the Public Works Department is not requesting any revisions to the capital budget. See Attachment H for the status of projects.

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28 Proposed Budget Changes
Vacancy Reporting
On September 22, 2024, Assembly Bill 2561 (“AB 2561”) was signed into law to amend the Meyers-Milias-Brown Act (“MMBA”) and create a new obligation for public agencies to publicly address the status of their vacancies. AB 2561 requires public agencies to present the status of their vacancies in a public hearing before their governing body at least once per fiscal year. This section is in compliance with AB 2561. Staff will bring this information as part of the Proposed Budget study session in May 2024.

Budget Format Changes
Based on recommendations from Baker Tilly on the Budget Document and Performance Measures Improvements review, staff will determine what changes may be feasible as part of the FY 2025-26 Proposed Budget.

Capital Improvement Plan
Public Works staff will bring forward potential Capital Improvement Projects to City Council in April and May 2025, to be reviewed at the FY 2025-26 Proposed Budget Study Session in May 2025, for inclusion in the FY 2025-26 Final Budget Hearing and Adoption in June 2025.

Council Work Program
City Manager’s Office staff will be bringing City Council Work Programs in March and April 2025, for inclusion the FY 2025-26 Proposed Budget Study Session in May 2025.

Other Budget Items
Administrative Services staff in conjunction with Parks and Recreation anticipates including both the Festival and Fee Waiver and Community Funding items as part of the proposed budget. This is a change from prior years when these documents were discussed as part of the proposed budget study session but not included in the document due to timing issues.

Additionally, proposed budget requests are still in process but staff wanted to highlight that it anticipates providing potential revenue tax measures in FY 2025-26 for Council consideration to inform Council of options should it choose to proceed with placing a tax measure on the November 2026 ballot. This aligns with the need to have a structurally balanced budget in the out year s of our forecast where we currently have declining surpluses.

Sustainability Impact
No sustainability impact.

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29 Fiscal Impact
The Mid-Year Financial Report shows the City is positioned as anticipated. City staff recommends adjustments of $ 4,161,892 in new appropriations, funded by $4,115,183 in revenues and $50,190 in one-time fund balance. The City will continue to monitor its revenue and expenditure trends closely to ensure it remains on track toward achieving its budgetary goals and objectives.

City Work Program (CWP) Item:

No.

CWP Item Description:

Not applicable.

Council Goal:

Public Engagement and Transparency
Sustainability and Fiscal Strategy

California Environmental Quality Act
Not applicable.

_____________________________________

Prepared by: Toni Oasay-Anderson, Senior Management Analyst Reviewed by: Kristina Alfaro, Director of Administrative Services Tina Kapoor , Deputy City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:

A – FY 2024-25 Mid-Year Financial Report
B – Draft Resolution
C – Description of Budget Transfers as of December 31, 2024 D – FY 2024-25 Mid-Year Recommended Adjustments
E – Mid-Year Performance Measures & Workload Indicators F – FY 2024-25 Mid-Year Special Projects Update as of December 31, 2024 G – Competitive and Non-Competitive Citywide Grants Tracking H – Capital Improvement Program Project Status
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This Financial Report is interactive. Click on a chart to learn more.

Background
On June 4, 2024, the City Council adopted the FY 2024-25 Adopted Budget, a $146.6 million spending plan funded by $139.3 million in revenue and $7.3 million in fund balance. The adopted budget reflected a $102,805 increase from the proposed budget.

As described in the City Manager’s First Quarter Financial Report, the budget was revised to account for encumbrances and carryover appropriations . As part of the FY 2024-25 year-end close, additional funds were carried forward to FY 2024-25, amounting to $9.0 million in encumbrances and $61.1 million in budget carryovers. The largest encumbrances were for General Fund ($4.8 million), and the largest carryovers were for General Fund ($24.3 million) and are largely related to The Rise Project.

Furthermore, the FY 2024-25 Amended Budget as of December 31, 2024 includes Council-approved budget adjustments from July 1 to December 31, 2024, for a total of $227,801,053 across all fund.

The amended budget at the end of mid-year is $227.8 million, funded with $175.0 million in revenue and $52.8 million in fund balance. The amended budget is the adopted budget, plus encumbrances, carryovers, and Council-approved budget adjustments. The reflection of carryovers and encumbrances in the amended budget is a standard practice in municipal budgeting and aligns with the amounts in previous years, which have been approximately $80 million. Carryovers and encumbrances are appropriations approved in prior years but have not yet been spent and are still required for ongoing projects or obligations.

CITY OF CUPERTINO
FY 2024-25 Mid-Year Financial Report
The Administrative Services Department is pleased to present the Mid-Year Financial Report for Fiscal Year 2024- 25, covering the period from July 1, 2024 to December 31, 2024. This report serves as an update on the City's financial standing, providing the City Council, City leadership, and the public with important insights on the City's fiscal status.

The City is committed to providing accurate and timely financial information, and this report reflects its ongoing efforts to maintain transparency and accountability.
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Amended Budget
2023-24
Amended Budget
Q1
2023-24
Amended Budget
Q3
2024-25
Adopted Budget
2024-25
Amended Budget
Q2
Fiscal Y ear

0.0 50.0M
100.0M
150.0M
200.0M
Dollars
Public Works
Capital Projects
Community Development
Law Enforcement
Non Departmental
Parks and Recreation
Administrative Services
Innovation & Technology
Administration
Council and Commissions
Community Development
Flow of Funds Chart (in Millions)
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General Fund Revenues, Expenditures, and Fund Balance
To date the City’s financial statement audit has yet to be issued and revenue, expenditure, and fund balance totals listed in this report are preliminary and subject to change after a full review by the City’s auditors. City staff does not anticipate many if any changes from the auditors. 139
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2020-21
Amended Budget
Q2
June
2020-21
Actual
December
2021-22
Actual
2022-23
Amended Budget
Q2
June
2022-23
Actual
2023-24
Amended Budget
Q2
December
2024-25
Actual
Fiscal Y ear

0.0 100.0M

25.0M

50.0M

75.0M
125.0M
Dollars
Revenues
Expenses
-$14,662,967.41
Revenues Less Expenses in Dec 2024
-$15M
-$10M
-$5M
$0
$5M
$10M
Dec 2020 Dec 2022 Dec 2024
$27,877,519.81
Revenues Less Expenses in Jun 2023
$0
$5M
$10M
$15M
$20M
$25M
$30M
Jun 2021 Jun 2022 Jun 2023
General Fund Revenue and Expenditure Trends
As of December 31, 2024, General Fund revenues have totaled $41.9 million, representing 34.3% of the budgeted revenue. This is below the mid-year revenue range of the past three years, which was between 35% and 40%. General Fund expenditures have totaled $56.5 million, which is 43.2% of the budgeted appropriations*. This is below the mid-year expenditure range of the previous three years, which was between General Fund Revenues - Expenses at Mid-Year General Fund Revenues - Expenses at Year End 140
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48% and 50% of year-end actual expenditures. To ensure fiscal stability, staff will continue to closely monitor leading revenue sources throughout the year.
*Staff is working with Opengov to resolve the discrepancy in the amended budget amount of $131,006,154.

General Fund Revenues - Mid- Y ear Actuals vs Budget
Data Updated Feb 26, 2025, 11:37 AM
12/2020 12/2021 12/2022 12/2023 12/2024

34.30%
In Revenues of $122,062,969.00 Budgeted through Dec 2024 General Fund Expenses - Mid- Y ear Actuals vs Budget
Data Updated Feb 26, 2025, 11:37 AM
12/2020 12/2021 12/2022 12/2023 12/2024

43.15%
In Expenses of $131,006, 154.00 Budgeted through Dec 2024 $41,867,139.46
Revenues in Dec 2024
$0
$20M
$40M
$60M
$80M
$100M
$120M
Jun 2021 Jun 2022 Jun 2023 Dec 2024
$56,530,106.84
Expenses in Dec 2024
$0
$20M
$40M
$60M
$80M
$100M
Jun 2021 Jun 2022 Jun 2023 Dec 2024
General Fund Revenues - Mid-Year vs Year End Actuals General Fund Expenses - Mid-Year vs Year End Actuals 141
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$41,867,139.43
Revenues in Dec 2024
Property Tax
Charges for ...

Sales Tax
Other
Licenses and...

Use of Money
$56,530,106.84
Expenses in Dec 2024
Contract Ser...

Employee Com...

Other
Cost Allocat...

Transfers Ou...

Expenses
General Fund Classification of Fund Balance
As of mid-year, staff anticipate the General Fund will end FY 2024-25 with $152.8 million in fund balance. A decrease of $13.2 million from the first quarter projection of $169.8. The decrease is due to the uncommitting of $10 million dollars for a one-time discretionary payment towards the City’s retirement system CalPERS, in addition to changes in the amended budget including adjustments being requested in this report. It’s important to note that the only portion available for use, according to City policy, is unassigned funds. Committed funds, such as the Committed for Future Use reserve are set aside for specific purposes determined by City Council resolution. Restricted funds, such as the Section 115 Pension Trust, are allocated for specific purposes stipulated by external resource providers. Assigned funds are reserved for encumbrances. Of the total fund balance, $29.1 million is unassigned and available to be used.

Approximately $10.7 million of unassigned fund balance is attributed to Vallco Town Center plan check and building inspection revenues that were carried over. These revenues will continue to be carried over each year until the services are rendered, and the revenues are recognized.

General Fund Revenues by Type General Fund Expenses by Type 142
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Recommended Adjustments
The City's departments regularly evaluate their budget expenditures throughout the fiscal year to ensure they stay within their budget appropriations. In case of any variance, they can request budget adjustments as necessary as part of the quarterly reports.

The budget adjustment requests are summarized in the table below.

Summary
The Mid-Year Financial Report shows the City is positioned as anticipated. City staff recommends adjustments of $4,161,892 in new appropriations, funded by $4,115,183 in revenues and $50,190 in one-time fund balance.

The City will continue to monitor its revenue and expenditure trends closely to ensure it remains on track toward achieving its budgetary goals and objectives.
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City of Cupertino, California
Cupertino City Hall
10300 Torre Avenue
Cupertino, CA 95014-3202
View the City Council Meeting Agenda
View the City's Budgets
View the City's Financial Transparency Portal
Powered by OpenGov
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RESOLUTION NO. 25-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2024-25 BY

APPROPRIATING, TRANSFERRING, AND UNAPPROPRIATING MONIES

FOR SPECIFIED FUNDS

WHEREAS, the orderly administration of municipal government depends on a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies; and

WHEREAS, accomplishing City Council directives, projects and programs, and performing staff duties and responsibilities likewise depends on the monies available for that purpose; and

WHEREAS, the City Manager has determined that the balances from the funds specified in this resolution are adequate to cover the proposed amen ded appropriations, and therefore recommends the fund reallocations described herein.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve the recommended fund reallocations and ratifies the attached amended appropriations as set forth in Exhibit A.

PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 4th day of March 2025, by the following vote:

Members of the City Council

AYES:

NOES:

ABSENT:

ABSTAIN:

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Resolution No. __________________

Page 2 ends

SIGNED:

________
Liang Chao, Mayor
City of Cupertino

________________________
Date
ATTEST:

________
Kirsten Squarcia, City Clerk

________________________
Date

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Attachment B
Exhibit A

General Fund 4,102,707 13,619 (4,092,569) Special Revenue Funds - - - Capital Project Funds - 4,070,000 4,070,000 Enterprise Funds - - - Internal Service Funds 59,185 31,564 (27,621) Total Appropriation
Amendment All Funds $ 4,161,892 $ 4,115,183 $ (50,190) Fund Balance
(Use of)
Appropriation
Amendment by Fund
Revenue
Amendment
Appropriation
Amendment
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Budget Transfers as of December 31, 2024 Attachment C
GL Account Description Amount
100‐74‐202 500‐501 ‐ Employee Compensation Salaries Full Time Code enforcement abatement (20,000) 100‐74‐202 700‐702 ‐ Contract Services General Service Agreement Code enforcement abatement 20,000 ‐
100‐74 ‐202 700‐702 ‐
Contract Services General Service Agreement Transfer $20k from Contract Services to new Abatement account (20,000) 100‐74‐716 700‐702 ‐ Contract Services Gen eral Service Agreement Transfer $20k from Contract Services to new Abatement account 20,000 ‐
100‐31 ‐305 700‐702 ‐
Contract Services General Service Agreement Funds for Applications Intern III (25,303) 100‐32‐308 500‐502 ‐ Employee Compensation Salaries Part Time Funds for Applications Intern III 24,626 100‐32‐308 501‐501 ‐ Employee Benefits PT Medicare Funds for Applications In tern III 357 100‐32‐308 501‐520 ‐ Employee Benefits PT PERS Funds for Applications Intern III 320 ‐
100‐31 ‐305 700‐702 ‐
Contract Services General Service Agreement Funds for Citywide Interns (95,315) 100‐44‐412 500‐502 ‐ Employee Compensation Salaries Part Time Funds for Citywide Interns 95,315 ‐
100‐12 ‐126 500‐501 ‐
Employee Compensation Salari es Full Time Jo Nguyen ‐ Medicare ‐ PT Communications & Marketing Coordinator (892) 100‐12‐126 500‐501 ‐ Employee Compensation Salaries Full Time Jo Nguyen ‐ PARS ‐ PT Communications & Marketing Coordinator (800) 100‐12‐126 500‐501 ‐ Employee Compensation Salaries Full Time Jo Nguyen ‐ Salary ‐ PT Communications & Marketing Coordinator (63,308) 100‐12‐126 500‐502 ‐ Employee Compensation Salaries Part Time Jo Nguyen ‐ Salary ‐ PT Communications & Marketing Coordinator 63,308 100‐12‐126 501‐501 ‐ Employee Benefits PT Medicare Jo Nguyen ‐ Medicare ‐ PT Communications & Marketing Coordinator 892 100‐12‐126 501‐519 ‐ Employee Benefits PT PARS Jo Nguyen ‐ PARS ‐ PT Communications & Marketing Coordinator 800 ‐
100‐12 ‐120 500‐501 ‐
Employee Compensation Salaries Full Time Shawn Spano ‐ Exec Coaching, Team Training, Strategic Planning (12,000) 100‐12‐120 700‐702 ‐ Contract Services General Service Agreement Shawn Spano ‐ Exec Coaching, Team Training, Strategic Planning 12,000 ‐
100‐12 ‐120 500‐501 ‐
Employee Compensation Salaries Ful l Time CBRE Real Estate Appraisal Services (3,100) 100‐12‐120 700‐702 ‐ Contract Services General Service Agreement CBRE Real Estate Appraisal Services 3,100 ‐
100‐12 ‐120 500‐501 ‐
Employee Compensation Salaries Full Time City ‐Owned Properties (16,900) 100‐12‐120 700‐702 ‐ Contract Services General Service Agreement City ‐Owned Properties 16,900 ‐
100‐12 ‐120 750‐239 ‐ Special Pr ojects PR & Strategic Comm Strategy Branding Guidelines & City Logo Refresh Consultant 50,000 100‐12‐126 500‐501 ‐ Employee Compensation Salaries Full Time Branding Guidelines & City Logo Refresh Consultant (50,000) ‐
100‐13 ‐130 700‐702 ‐
Contract Services General Service Agreement Assist in funding Logikcull Amendment for increased PRA storage (3,000) 100‐32‐308 600‐606 ‐ Materials Software Assist in funding Logikcull Amendment for increased PRA storage 3,000 ‐
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Budget Transfers as of December 31, 2024 Attachment D
GL Account Description Amount
100‐12‐120 700‐702 ‐ Contract Services General Service Agreement Assist in funding Logikcull Amendment for increased PRA storage (1,000) 100‐32‐308 600‐606 ‐ Materials Software Assist in funding Logikcull Amendment for increased PRA storage 1,000 ‐
100‐41‐405 600‐629 ‐ Materials Conference and Training Conference and Training for Greg (600) 100‐41‐425 600‐629 ‐ Materials Conference and Training Conference and Training for Greg 600 ‐
100‐12‐120 700‐702 ‐ Contract Services General Service Agreement Vallco Project Management 2025 (20,593) 100‐71‐701 700‐702 ‐ Contract Services General Service Agreement Vallco Project Management 2025 20,593 ‐
100‐32‐308 600‐606 ‐ Materials Software BMN for Plante & Moran ERP Consulting Agreement (69,166) 100‐32‐308 750‐181 ‐
Special Projects ERP (Phase II) BMN for Plante & Moran ERP Consulting Agreement 69,166 TOTAL ‐
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FY 2024‐25 Mid‐Year
Recommended Budget Adjustments
Attachment D
2/19/2025 10062623450404                      13,619 Hidden Treasures Proceeds 2/19/2025 10062623600639                      11,188 Hidden Treasures Proceeds 2/19/2025 63090985900945                      33,700 Mower Replacement 2/19/2025 10031305500502                     (31,564) I&T ‐ Admin ‐ PT Admin Assistant 2/19/2025 10090001800902                      31,564 I&T ‐ Admin ‐ PT Admin Assistant 2/19/2025 61030300500502                      22,479 I&T ‐ Admin ‐ PT Admin Assistant 2/19/2025 61034310500502                        9,085 I&T ‐ Admin ‐ PT Admin Assistant 2/19/2025 61030300421401                      22,479 I&T ‐ Transfers 2/19/2025 61034310421401                        9,085 I&T ‐ Transfers 2/19/2025 10044412700702                      10,000 Exec recruitment ‐ ACM 2/19/2025 10044412700702
15,000                      Exec recruitment ‐ CA
2/19/2025 10090001800902                 4,070,000
Transfer out unassigned fund balance to Capital Reserve to meet minimum reserve levels per policy
2/19/2025 42999001421401                 4,070,000
Transfer in to Capital Reserve from unassigned fund balance to meet minimum reserve levels per policy
2/19/2025 61034310750199                       (6,079) Partial Defund of City Facilities Video Capture 2/19/2025 10032308750123                       (3,481) Partial Defund of Redesign of City Website 150
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City of Cupertino
FY 24‐25 Budget Performance Measures
Department: Administrative Services
Finance
Goal: Financial Stability ‐ Provide a sustainable level of core services that are funded from ongoing and stable revenue sources.

So that… Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Ongoing
Target
General Fund committed, assigned,
and unassigned fund balance as a %
of bud geted appropriations
122% 45% 101% 35%
Credit Rating AA+ AA+ AA+ AA+
Actual expenditures (% below budget) 14% 14% 189% 5%
So that…
Citizens can enjoy high quality services that meet community priorities.

Human Resources
Goal: To create a thriving organization with meaningful careers in public service.

So that…
Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Ongoing
Target
# of Worker’s Compensation Cases 49 5 0
Total recordable Injury Rate YTD 1.4% 3.3% 1.9% 0%
% absenteeism
(% of total annual work hours) 3% 3% 3% 2%
% turnover rate 9% 7% 3% 1%
% Employee participation in wellness
activities 38% 44% 41% 75%
Average # of applications received per
recruitment 45 50 83 50
Recruitment timeline ‐ # days from
hiring request to offer letter 105 79 63 60
So that…
Citizens can enjoy high quality services that meet community priorities.

Actual revenue vs. budget (% below
budget) 17% 20% 147% 10%
Funding allocated to high priority
services (Public Works, Community
Development, Law Enforcement)
58% 66% 71% 63%
The City is
financially
responsible.

The City can
invest in
Community
priorities.

The City can
ensure a safe
working
environment for
all employees
The City attracts
and retains a
talented
workforce
The agency
builds a flexible
and productive
work
arrangement.
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City of Cupertino
FY 24‐25 Budget Workload Indicators
Department: Administrative Services
Finance
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
# of vendor checks processed 5,130          4,541               2,407 # of payroll checks processed 9,176          9,038               4,505 # of business license applications 969             1,087               582 # of business license renewals 2,176         2,206               1,089 # of journal entries posted 3,695          4,560               3,273 # of purchase orders approved 543             445                  332 # of receipts processed 11,275        10,191             5,114 Human Resources
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
# of regular recruitments 29               21                    12 # of regular new hires 31
24                    17
# of temporary new hires 70               68                    15 # of personnel payroll changes 773             768                  160 # of full‐time employee exits
processed 22               25                    11
# of mandated training classes
offered* 19               15                    11
# of employees participating in the
wellness program 80               94                    79 *some trainings mandated every other year, however not on the same annual schedule 152
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City of Cupertino
FY 24‐25 Budget Performance Measures
Department: Community Development Department
Community Development
Goal: Review and guide development activity to ensure compliance with relevant codes and policies, and alignment with community values to promote and enhance Cupertinoʹs community‐wide quality of life.

Enabled by… Measure
FY23
Jul‐Jun
FY24
Jul‐Dec
FY25
Jul‐De c Ongoing Target
Building permit applications shall be
plan reviewed within 15 business days.
80% 82% 95% 80%
Customer/Applicants visiting the
Building Permit Counter shall be assisted
within 15 minutes
90% 92% 89% 80%
Applicants visiting the Planning Counter
shall be assisted within 15 minutes 98% 96% 93% 50%

Building permit applications
reviewed/issued over‐the‐counter (OTC)
62% 61% 60% 75%
Below market rate rental and purchase
vacancies f illed 20 8 4 15 per year
Average number of days to initiate
investigation of code complaints 0.54 0.46 0.45 < 7
Code enforcement cases resolved
without issuance of citations 93% 92% 88% 80%
Landlord‐tenant counseling and dispute
resolution cases provided 25 38 12 100 per year
Public Outreach Events 15 9 5 12 per year
Funds received from Community Block
Grant (CDBG) federal entitlement
program
$388,459 $358,910 $173,313
Comply with
HUDʹs annu al
timeliness test
Efficient
planning and
building
services and
enhanced
customer
service.

Effective code
enforcement
services.

Affordable and
Below Market
Rate Housing
programs and
public service
grants.

Cupertino is a thriving City to live, work, learn and play. 153
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City of Cupertino
FY 24‐25 Budget Workload Indicators
Department: Community Development
Planning and Community Development
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Dec
FY25
Jul‐Dec
Number of preliminary reviews 127 21 29
Number of planning applications
received 232 95 170
Number of planning counter inquiries 1,223 644 891
Housing Services
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Dec
FY25
Jul‐Dec
Number of BMR rental and ownership
vacancies filled 20 8 4
Number of landlord tenant counseling
and dispute cases received 25 38 12
Number of annual HUD documents
(CAPER, Action Plan, Consolidated
Plan) completed 21
1 Housing and Human Services Grant
Funds inquiries 10
N/A
(applications
are due
2/6/24)
N/A
(applications are
due 2/4/25)
Building
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Dec
FY25
Jul‐Dec
Number of permits received 2,618 1,324 1,596
Number of inspections requested 15,181 8,406 7,605
Number of building counter inquiries 2310 1755 1940
Data provided from April 2022‐ June 2022
* In person appointment started July 15, 2021, the counters were temporary closed in January 10, 2022 due to the surge of the Omicron variant of Covid‐ 19 *For FY 2024, the City only accepted applications for Capital Housing projects. Public service funds operate on a multi‐year cycle and will be made available during the FY 2025 funding cycle. 154
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City of Cupertino
FY 24‐25 Budget Performance Measures
Department: City Managerʹs Office, 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.

Enabled by… Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Ongoing
Target
City Council min utes 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
85%/60% 100%/
100%
100%/
100% 100%
Public Record Act requests responded
to by the Statutory deadline date 99% 99% 100% 100%
So that…
All can fully participate in local government to achieve the community & organizational goals.

Online
information and
updated records
that can be
easily accessed
in a timely
manner.

Response to
records requests
to comply with
State law of 10
days.
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City of Cupertino
FY 24‐25 Budget Workload Indicators
Department: Administration, City Clerk Division
City Clerk
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
City Council minutes for regular
meetings presented for Council
approval by the following regular
meeting
20/20 44/44 16/16
Adopted City Council resolutions and
ordinances processed and scanned to
Laserfiche within a week of Clerk’s
office receipt of final, signed
document
136/160;
6/10
131/131;
13/13 55/55; 8/8
Public Record Act requests responded
to by the Statutory deadline date
271/274
258/259 183/183
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City of Cupertino
FY 24‐25 Budget Performance Measures
Department: City Managerʹs Office, Economic Development Division Enabled by…
Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Ongoing
Target
Maintain Economic Development
Business Connect Subscribers 6,000 8,758 9,752 9,000
Economic Development Business
Visits, Workshops & Events 76 4 3 3 2 0 per year
So that…
GOAL: To actively pursue opportunities in the areas of business attraction, 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.

Effective
partnerships
and proactive
Economic
Development
programs to
support local
businesses.

Cupertinoʹs economy and sales tax revenue base are diversified to further enhance the Cityʹs financial stability and its ability to provide quality amenities to the community. 157
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City of Cupertino
FY 24‐25 Budget Workload Indicators
Department: Administration, Economic Development Division Economic Development
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Meetings with large groups/organizations; appointments
with brokers, prospective business owners, business owners and operators, City staff, etc. 50 281 257
Special events, including small business workshops and
seminars, ICSC conferences and events, ribbon cuttings and grand openings, and Small Business Saturday Celebration 71 3 1 3
Number of Delivery Posts to Business Connect Subscribers 31 2 1 9 158
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City of Cupertino
FY 24‐25 Budget Performance Measures
Department: Administration, City Managerʹs Office, Office of Communications Division 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.

Enabled by… Measure
FY23
Jul‐Jun
FY24
Jul‐Dec
FY25
Ju
l‐Dec
Ongoing
Target
Social media engagement: total number
of followers including City Hall
Nextdoor, Facebook, Twitter, and
Instagram , YouTube, accounts
41,000 48,622 49,426
10%
annual
increase
Community engagement: total number
of IOI recipients 1732 2,581 2,819
10%
annual
increase
Total Number of Gov Delivery Notices
sent 586 556 302
10%
annual
increase
So that…
*Social media engagement metrics seen here are different due to Facebookʹs 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.

Residents have access to timely, engaging, and important information Leveraging the
communication
skills,
knowledge, and
experience of
employees while
utilizing existing
and emerging
technologies to
enhance,
improve, and
streamline the
communication
process.
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City of Cupertino
FY 24‐25 Budget Workload Indicators
Department: Administration, Office of Communications
Public Affairs
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25 Jul‐
Dec
Social Media Engagement: Post per
year (Facebook, Nextdoor, Twitter,
Instagram) 500 747 483
Number of YouTube videos created 17 31 26
Number of Community Information
and Outreach Program products
provided (newsletters, press releases,
website news postings) 150
50 48
Number of Communications Requests
Received and Completed from
Departments via Communications
Request Form N/A N/A 416
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City of Cupertino
FY 24‐25 Budget Performance Measures
Department: Innovation & Technology
Innovation & Technology
Goal: Provide superior delivery of information and technology services to city employees and constituents while continually enhancing levels of engagement.

Enabled by… Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Ongoing
Target
GIS: % of time spent Developing
Application 50% 28% 34% 65%
GIS
: % of time Maintaining
applications 50% 72% 66% 35%
GIS: Increase Property Information
(Internal/External) site visits per
month
279/84 338/97 325/96 500/100
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 45/32 45/32 45/45
Infrastructure: Percentage based upon
number of scheduled projects/Number
of projects completed on time
N/A 63% 67% 100%
Infrastructure: Percentage based upon
number of HelpDesk tickets/SLA
measurements

85.9% 90.4% 91.3% 90%
Infrastructure: % Customer
satisfaction based upon Satisfaction
Rate from helpdesk tickets

99.6% 94.8% 100% 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
98% 96% 95% 95%
Applications: Number of website site
visits/Number of site hits 857,387 1,100,000 630,000
5%
annual
increase
Applications: Number of support
request for the applications support
per month
640 850 628 20
Tools and
services leverage
existing,
emerging and
innovative
technologies to
enhance,
improve, and
streamline
business and
communications
processes
Integrated
information
services enable
customers’
access to the
tools and
information they
need, when and
where they need
it
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City of Cupertino
FY 24‐25 Budget Workload Indicators
Department: Innovation Technology
Applications
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Number of tasks for Enterprise Programs Support & Maintenanace ‐ 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 permiting, licensing and enforcement solutions. 2,250
Standardizin
g tracking
process
2,550 1,530
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 Requirement‐gathering, Analysis, Designing, Coding, Testing and Deployment of these custom software solutions. 1,300
1,500 1,240
% of Project Implementation Performed on Time and Budget for Ciytwide 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.
95%
96% 95%
Infrastructure
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐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. Infrastructureʹs goal is to provide a service level where 90% of all helpdesk service requests are completed in 48 hours or less.

85.9%

90.4% 91.3%
% of network uptime ‐ Maintain availability and accessibility of the Cityʹs network infrastructure during business hours of operation. The Cityʹs 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 N/A
5     4
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GIS
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Hours Spent on Development ‐ The GIS Division builds internal and external web applications, business intelligence tools, digital workflows,  and configures enterprise applications.
507/new
tracking
system was
in
development
during this
time frame
673/new
tracking
system was in
development
during this
time frame
433
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.
316/new
tracking
system was
in
development
during this
time frame
349/new
tracking
system was in
development
during this
time frame
279
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%*
7/8       3/3
3/5
*One project was removed due to budget cuts
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City of Cupertino
FY 24‐25 Budget Performance Measures
Department: Information & Technology, Video Division
Enabled by…
Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐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
So that…
* Unable to retrieve Granicus viewership data due to error in their reporting module GOAL: Video Division oversees numerous outreach projects, public meetings, internal equipment upgrades, and public events. These activities coincide with the City Council and City’s expectation for a positive presence in the community and communications and transparency to residents. 24/7 government access
channel, radio station,
digital signage network,
City website, and
numerous online video
platforms.

Public awareness, interest, understanding, and participation in the issues, programs, and services presented by the City of Cupertino can be enhanced.
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City of Cupertino
FY 24‐25 Budget Workload Indicators
Department: Information & Technology, Video Division
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Video Productions Completed vs. Those Scheduled ‐ Video productions range in scope from relatively simple 30‐second public service announcements to major projects like CREST that require more than two months of on‐going field production, post‐production editing, and a live awards program telecast.

This specific Workload Indicator clearly indicates that a large percentage of annual video projects are unscheduled or unanticipated. The measurements here are tracked in the ʺmilestonesʺ document located in our City Channel documentation folder. The milestones document is a comprehensive dataset of all the video division projects‐‐both large and small‐‐and is maintained by the entire video staff. City meeting telecasts are not included in this particular dataset.
245%
27/11
356%
57/16
245%
27/11
Engineering Projects Completed vs. Those Scheduled ‐ Video staff is responsible for designing, managing, and maintaining the many audiovisual and broadcast systems located within the organization. These include systems within the conference and multipurpose rooms, office and huddle spaces, as well as the complex broadcast systems within the video control room at Community Hall. The Workload Indicator here measures the number of projects completed vs. the number of scheduled projects. These measurements are tracked in the ʺengineering milestonesʺ document located in our City Channel documentation folder. This document is maintained by Pete Coglianese, who is the broadcast engineer for the division. 100%
2/2
275%
11/4
100%
2/2
Total Viewership on the YouTube and Granicus Platforms ‐ Video staff historically tracks viewership data within our primary online video platforms‐ ‐
YouTube and Granicus. Both YouTube and Granicus provide advanced reporting modules that allow us to accurately track the number of views over a given date range. The numbers here indicate total views rather than total unique views. Other online platforms were considered as part of this dataset; however, because we do not consistently post videos to our other social media sites such as Facebook, Twitter, Instagram, and Nextdoor, those statistics were not included as part of this specific performance measure. Similarly, we do have accurate viewership data for the City Channel, our government access television channel, so that platform was excluded as well. 60,249
158,300 60,249
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City of Cupertino
FY 24‐25 Budget Performance Measures
Department: Law Enforcement
Law Enforcement
Goal: Maintain a safe environment to live, work, learn and play.

Enabled by… Measure
FY23 Jul‐
Jun
FY24
Jul‐Jun
FY25 Jul‐
Dec
Ongoing
Target
Priority 1 6.57 5.81 7.28 5 minutes
Priority 2 7.46 6.32 6.41 9 minutes
Priority 3 12.72 7.86 6.30 20 minutes
% programs maintaining minimum
attendance
Teen & Citizen
Academy
90% 100% 0% 80%
Response time for emergency callsAll members of
the community are
safe, informed,
empowered and
supported.
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City of Cupertino
FY 24‐25 Budget Workload Indicators
Department: Law Enforcement
Law Enforcement
Workload Indicator FY23 Jul‐
Jun
FY24 Jul‐
Jun
FY25 Jul‐
Dec
Total Priority 1 Calls 85 52 14
Total Priority 2 Calls 4,263 5,315 2,910
Total Priority 3 Calls 3,161 3,818 1,836
Total Teen/Community Academy
Participants 18 31 0
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City of Cupertino
FY 24‐25 Budget Performance Measures
Department: Parks and Recreation
Parks and Recreation
Goal: Create a positive, healthy and connected community.

Enabled by…
Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Ongoing
Target
% of Parks and Recreation Department
customers surveyed who rate services
as good or excellent
98% 98% 98% 85%
% of programs maintaining minimum
registration 78%
78% 82% 80%
% change in participants 16% 13% 14% 1%
So that…
Cupertino has an exceptional system of parks and services that align with community values. 40%% Departmentʹs total cost recovery for
all (direct and indirect) costs 55% 56% 53%
City investment in
quality recreation
and community
programs
Improved business
processes to
improve customer
experience
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City of Cupertino
FY 24‐25 Budget Workload Indicators
Department: Parks and Recreation
Business and Community Services
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Number of reservations at Quinlan
Center 405 426 202
Number of festival applications
received 10 9 9
Recreation and Education
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Number of registrations 3,756 3,960 2,178
Number of survey respondents 95 62 54
Number of Senior Center classes
offered 235 381 216
Number of Senior Center trips offered 14 22 11
Sports, Safety and Outdoor Recreation
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Number of programs offered 1,256 1,202 730
Number of picnic reservations @ BBF 152 159 100
Rounds of golf at BBF Golf Course 37,961 41,974 20,009
Sports Center Memberships 1,394 1,493 1,689
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City of Cupertino
FY 24‐25 Budget Performance Measures
Department: Public Works
Capital Project Delivery
So that…
Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Percentage of projects completed on
budget
100% 100% 100%
Percentage of construction projects
completed on time 100% 100% 33%
Goal: Develop and deliver projects on time and within budget that serve the residentʹs needs and s upports the City stability and growth
*FY23: 10 projects completed, 10 projects on budget, 10 projects on time; *FY24: 6 projects completed, 6 projects on budget, 6 projects on time; *FY25 Q1 & Q2: 6 projects completed, 6 projects on budget, 2 projects on time

City funds
capital
improvement
projects.

Projects are
utilized by the
community.

Benefit: Residents and businesses are assured their community is being improved insightful, targeted and efficient use of taxes and fees towards maintaining and impr the Cityʹs facilities and assets.
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Environment
Goal: Protect our natural environment for current and future generations.

So that...

Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Percent of businesses in compliance
during annual proactive stormwater
pollution prevention inspections
95% 93% 67%
Percent of non‐exempt businesses and
multi‐family accounts separating
organics
87% 98% 99%
Percent trash/litter reduction achieved to
meet Stormwater Permit requirements
94% 97% N/A
Diversion rate from all single‐family,
multi‐family, and commercial accounts
as reported by Recology tonnage reports
53% 48% 50%
Respond to reports of actual or potential
discharge the same business day 86% 72% 71%
% of plan reviews completed in required
number of days 93% 92% 92%
Cubic yards of co mpost distributed via
compost site Quarry: 600CY
SMaRT Station:
789CY
Compost;
239CY Mulch
Quarry: 180
CY SMaRT
Station: 580
CY Compost

45.45 CY
Mulch
Quarry: 0 CY
SMaRT
Station:
278.18 CY
Compost

21.82 CY
Mulch
% of vegetation obstructions resolved
within 15 days from time of report* 37% 68% N/A
*Inspections occur in the spring only
City is
responsible for
a
comprehensive
storm water
pollution
prevention
program.

Potential
pollutants are
stopped before
entering the
storm drain
system.

City implements
solid waste
collection
services that
encourage
diversion of
waste from
landfills.

Benefit: Current and future residents enjoy a healthy, sustainable environmen Diversion of
solid waste
from landfill is
maximized,
compost is
produced for
community use,
recyclable
material is sold
to help offset
collection costs
and methane
gas emissions at
landfills are
reduced.
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Development Services
Goal: Provide timely review and permitting of privately completed improvements within the public right of way.

So that…
Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Percentage of completeed plan
submittals or applications responded to
within two (2) weeks
94% 88% 77%
Percentage of completed encroachment
permit applications responded to within
two (2) weeks
94%
92% 90%
Percentage of public inquiries at the
Public Works counter in City Hall
attended to within 15 minutes
95% 95% 95%
Grounds Division
So that... Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Percentage of 311 requests that are
responded to and closed within 3
business days
62% 59% 47%
Percentage of the 1,872 park inspections,
including play grounds, per formed
weekly
31% 37% 59%
Percentage of Backflow Prevention
Devices inspected, tested and repaired
annually
100% 100% 100%
Goal: Provide well maintained, clean, and safe areas for the community’s recreational use and enjoyment at optim cycle costs.

Improvements
within the
public right of
way have
engineering
oversight and
are constructed
to City
standards.

Public
improvements
are consistent
and meet the
needs of the
community.

Benefit: Customers can expect quality reviews and permitting on a defined schedule the community can expect quality public facilities.

The City
consistently
funds park
maintenance
and safety
improvement
programs.

Benefit: Cupertino has a well maintained public park system that meets the needs of community and is beneficial to personal wellness.

Parks are
maintained in
good, usable
condition;
safety
programs are
effective.
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Streets Division
So that… Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Pavement condition index (PCI) > or
equal to 82 81 82 82
Percent of the 2087 storm drain inlets
inspected and cleaned in fiscal year 53% 21% 12%
Percent of Inlets with Trash Capture
Screens inspected and cleaned twice
yearly
100% 100% 50%
Percentage of roadway regulatory &
street name signs repaired or replaced 2.0% 5.0% 5.0%
Percentage of trip and fall complaints
investigated and mitigated within 2
business days
73% 60% 84%
Percentage of reported streetlight
outages investigated and repaired in 3
business days
90% 90% 90%
Trees and Right of Way Division
So that... Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Percentage of 311 requests that are
responded to and closed within 3
business days
90% 90% 90%
Percentage of trees inspected and
maintained in the yearly maintenance
zone (8 year maintenance cycle)
22% 87% 48%
Percentage of trees planted versus trees
removed
# pla
nted/# removed
146% 153/105 68% 77/114 88% 44/50
Goal: Timely maintenance of public sidewalks, streets, streetlights and storm drain system in good condition to en environmentally compliant, and accessible infrastructure that minimizes liability and has an optimal life cycle cost Goal: Maintain and enhance the Cityʹs street trees and medians to ensure a safe, healthy and environmentally cons Urban Forest.

The City
consistently
funds street
and storm
drain
maintenance
and safety
improvement
programs.

Street and
storm drain
systems are
maintained in a
good condition;
safety
programs are
effective.

Benefit: Cupertino has well maintained street and storm drain systems that meet the n of the community.

Benefit: Cupertino has a healthy and safe urban forest and medians provide good aesthetic and environmental value.

The City
consistently
funds street
tree and
median
maintenance
and safety
programs
Street trees and
medians
remain in good
health and
condition
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Facilities and Fleet Division
So that… Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Percentage of preventative maintenance
work orders completed for Fleet assets
within 14 days of the due date.
54% 69% 72%
Percentage of facilities maintenance
requests closed within 14 days. 35% 66% 63%
Transportation Division
So that... Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Percentage of no n‐emergency traffic
signal requests addressed within 72
hours.
95% 100% 100%
Percentage of emergency traffic signal
requests addressed within 2 hours. 100% 100% 100%
Percentage of traffic engineering
requests responded to within 72 hours 85% 90% 90%
Annual mileage increase of separated
bicycle lanes and pedestrian paths.

0.82 0.00 0.2
Goal: Timely maintain City Facilities and City Fleet to meet staff, community and envi ronmental requirements at a optimal life cycle cost.

Goal: Ensure the efficiency and safety of the transportation system for all modes of travel.

The City
consistently
funds facility
and fleet
maintenance,
fleet
procurement,
and safety
improvement
programs.

Benefit: Cupertino has well maintained, usable, and safe facilities and fleet in orde meet the needs of staff and the community.

Benefit: Having a safe and efficient transportation system that is inviting for all mod travel.

Infrastructure
indicates good
condition;
safety
programs are
effective.

Facilities and
Fleet remain in
good and
operable
condition.
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Ongoing
Target
95%
95%
yʹs
d by
roving
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Ongoing
Target
75%
100%
(SB1383)
100% by
7/1/2025
55%
95%
100%
1,000 CY
100%
nt.
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Ongoing
Target
90%
90%
95%
Ongoing
Target
80%
100%
100%
al life
e, and
f the
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Ongoing
Target
82 100%
100%
7%
98%
90%
Ongoing
Target
95%
100%
101%
sure safe,
t.
cious
needs
d
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Ongoing
Target
85%
90%
Ongoing
Target
100%
100%
95%
1 mile
n
er to
des of
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City of Cupertino
FY 24‐25 Budget Workload Indicators
Department: Public Works
Capital Improvement Program
Workload Indicator FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Number of projects started in the first
year funded
4/5 2/2 6/6
Number of active projects versus total
number of projects
24/26 23/28 17/25
Environmental Programs
Workload Indicator FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Number of actual versus potential
discharges
93 actual
27 potential
104 actual
17 potential
25 actual
13 potential
Number of stormwater pollution
prevention industrial commercial
inspections
136 160 2 so far
Number of building and demolition
permits reviewed
754 662 327 so far
Number of non‐exempt businesses
and multi‐family accounts required to
separate organics
272 475 471
Tons of waste entering landfill from
single‐family, multi‐family, and
commercial accounts as reported by
Recology
July 1,2022‐ June
30,2023:
11,879.39
13,008 6,324
Number of visitors to compost site (FY22‐23)
Quarry: 910;
SMaRT Station:

Compost (397)
Mulch (103)
Quarry: 913
SMaRT Station:

Compost (506)
Mulch (148)
Quarry: 411
SMaRT Station:

Compost (220)
Mulch (54)
Number of vegetation obstructions
re
ported
95 25 N/A
*Vegetation obstructions being handled by Code beginning August 2023 182
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Developmental Services
Workload Indicator FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Number of development applications
received
127 111 70
Number of encroachment permit
a
pplications received
449 478 218
Number of customer service visits 358 471 297
Grounds
Workload Indicator FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Maintain city grounds (#) with total
acreage (SF)
29 sites/149AC 29 sites/149AC 29 sites/149AC
Maintain school sites (#)with total
acreage (SF)
9 sites/46AC 9 sites/46AC 9 sites/46AC
Total Number of 311 Requests 45 69 32
Total number of play grounds
maintained
37 37 37
Total number of irrigation controllers
maintained
74 74 74
Total number of park trees maintained 5,223 5,361 5,361 Total number of park furniture
maintained
(tables and benches)
431 431 431
Total number of city trash receptacles
maintained
420 420 420
Total number of backflow preventers
maintained
174 174 174
Streets
Workload Indicator FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Total roadway miles 138 138 138
Total concrete sidewalk miles 196 196 196
Total number of unique sidewalk
re
pair sites addressed
730 258 211
Total square footage of sidewalk, curb
and gutter repaired/replaced
46,466 30,996 5,425
Total number of storm drain inlets 2,094 2,103 2,103
Total number of drain inlets with trash
capture devices
179 182 200
Total number of streetlights 3,413 3,421 3,421
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Total number of roadway signs 10,394 10,444 10,494
Total miles of storm drain pipe
maintained
104.7 104.7 104.7
Total number of crosswalks
maintained
723 723 723
Total miles of pavement striping
maintained
162 162 162
Total number of street miles swept
monthl
y
696 696 696
Trees and Right of Way
Workload Indicator FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Total number of street trees 1,922 Trees
Maintained
2828 Trees
Maintained
1696 Trees
Maintained
Total acreage of medians maintained 40 AC 40 AC 40 AC
Total number of median islands
maintained
185 185 185
Total square feet of median landscape
converted or installed to water efficent
landsca
ping
16,873 0 Defunded 0 Defunded
Total number of irrigation controllers
maintained
45 45 45
Total number of 311 Requests for tree
maintenance
386 473 332
Miles of pedestrian and bicycle trails
maintained

0.85 3.0+ 3.0+
Facilities and Fleet
Workload Indicator FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Total number of city facilities
maintained
51/221,500 SF 51/221,500 SF 51/221,500 SF
Total number of Fleet vehicles
maintained
105 107 107
Total number of special equipment
maintained (tractors, trailers, chippers,
riding mowers, club car, forklift,
generator)
329 329 329
Total number of small equipment
maintained
278 278 278
Total number of work orders
com
pleted
1,836 Facilities
553 Fleet
1772 Facilities
693 Fleet
1105 Facilities
395 Fleet
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Fleet vehicles replaced with hybrid
and/or electric models
13 2
Annual number of sitevisits to ensure
janitorial compliance
1,628 1,628 1,628
Transportation
Workload Indicator FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Number of signalized intersections 60 60 60
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City of Cupertino
FY 24‐25 Budget Performance Measures
Department: Public Works, Sustainability
GOAL: Implement Cupertino’s Climate Action Plan and General Plan Sustainability Element to achieve quantifiable emissions reductions, conserve finite resources, and achieve utility cost avoidance and savings across municipal operations and community partners.

Enabled by… Measure
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐De c
Ongoing
Target
% community‐wide emissions reduced
from baseline of 307,288 MT CO2e/yr
15%
reduction
by 2020
(261,195
MT
CO2e/yr)
Initiate, develop, and complete actions
from the Climate Action Plan 2.0
% initiated
% complete or ongoing
(CAP

1.0)100%
79%
6%
4%
28%
10%
100%
100%
% municipal operations emissions
reduced from baseline of 1,865 MT
CO2e
/yr
15%
reduction
by 2020
1 Cupertinoʹs GHG inventories are conducted roughly every 3‐5 years.

So that…
2018 inventory: 24% decrease
in emissions from baseline
(258,659 MT CO2e/yr)
2018 inventory: 66%
reduction in emissions from
baseline: 642 MTCO2e
An agency
implementing
Council and
community
sustainability
goals to
effectively
safeguard
shared
resources.

Engaged
community
partners and
volunteers
supporting CAP
implementation
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City of Cupertino
FY 24‐25 Budget Workload Indicators
Department: Public Works, Sustainability
Workload Indicator
FY23
Jul‐Jun
FY24
Jul‐Jun
FY25
Jul‐Dec
Climate Action Plan 2.0 Actions
initiated or in Progress 82 2 3 0
Climate Action Plan 2.0 Actions
Completed 57 1 4
Community Education and Outreach
Activities Held 55 1 4
Cross‐Departmental Projects
Supporting 959
Number of municipal and community
programs leading or supporting 883
187
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FY 2024-25 First Quarter Special Projects Attachment G
FY Added Department Program Base And Detail Account
With Detail Description
Full Org Set Code And
Description
Amended
Budget
Actual Amount
(Expenses)
Encumbrances Status Estimated
Completion
Notes (e.g., carried over
to next fiscal year)
FY24
Administration 120   City Manager 750.239 ‐ PR & Strategic Comm Strategy
100‐12‐120 ‐  General Fund‐City Manager‐City
Manager
127,400.00 0.00 0.00 In Progress 6/30/2026
FY24
Administration 120   City Manager 750.245 ‐ CWP Rise Const Stakeholder Engmt
100‐12‐120 ‐  General Fund‐City Manager‐City
Manager
100,000.00 0.00 0.00 In Progress 6/30/2025 The City will continue engagement with The Rise on an ongoing basis.

Expenses may occur after Q2.

FY
20 Administration 632 Comm Outreach &
Neigh Watch
750.056 ‐ Neighborhood
Engagement
100‐12‐632 ‐ General Fund‐City Manager‐
Comm Outreach & Neigh Watch
56,781.00 23,562.29 0.00 Co mpleted 9/30/2024 The Neighbor to Neighbor grant ended on 9/30/24. Final
encumbrance of $19,481 processed
in Q2.

FY24
Administration 632  Comm Outreach &
Neigh Watch
750.227 ‐ CWP Public Safety res/com
areas
100‐12‐632 ‐  General Fund‐City Ma nager‐
Comm Outreach & Neigh Watch
10,000.00 0.00 0.00 In Progress 6/30/2025 The Block Leader outreach program has started and staff  will continue to
promote the programs until the end
of this fiscal year.

FY24
Administration 633 Disaster
Preparedness
750.230 ‐ Business Continuity
Resilience
100‐12‐633 ‐ General Fund‐City Manager‐
Disaster Preparedness
500,000.00 0.00 0.00 Not Started 6/30/2024 Staff is considering making improvements to the EO
C later this
fiscal year.

FY23
Administration 633 Disaster
Preparedness
750.240 ‐ MRC Rise 100‐12‐633 ‐ General Fund‐City Manager‐ Disaster Preparedness
2,194.00 1,176.24 0.00 Completed 9/30/2024 Additional supplies purchased for MRC Rise in July 2024. Project is now
complete.

FY24
Administration 705  Economic
Development
750.230 ‐ Business Continuity
Resilience
100‐12‐705 ‐  General Fund‐City Manager‐
Economic D evelopment
310,487.00 0.00 0.00 In Progress 6/30/2025 Funds were carried over for the ongoing support for Small to
Medium Business Resiliency. This
was a Budget allocation from the
State of California
FY23
Administration 705  Economic
Development
750.179 ‐ Econ Dev Strategy
Outreach
100‐12‐705 ‐  General Fund‐City Manager‐
Economic Development
20,000.00 0.00 0.00 Not Started Defund at Q3
FY17
Community development 701  Current Planning 750.007 ‐ The Ha mptons 100‐71‐701 ‐  General Fund‐Planning‐Current Planning
108,640.00 0.00 0.00 Not Started Waiting for building submittal.

Project approval expries in 2026
FY21
Community development 701 Current Planning 750.009 ‐ Marina Plaza 100‐71‐701 ‐ General Fund‐Planning‐Current Planning
23,317.00 0.00 0.00 Not Started Waiting for building submittal.

Project approval expries in
December 2026.

FY22
Community development 701 Current Planning 750.029 ‐ Vallco SB35/Rise 100‐ 71‐701 ‐ General Fund‐Planning‐Current Planning
109,207.00 0.00 0.00 In Progress Ongoing Waiting for building permit. Some permits for grading and site
preparation work issued.

FY20
Community development 702  Mid Long Term
Planning
750.032 ‐ General Plan 100‐71‐702 ‐  General Fund‐Planning‐Mid Long Term Planning
239,805.00 0.00 0.00 In Progress Ongoing Operational item, no completion date
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FY 2024-25 First Quarter Special Projects Attachment G
FY17
Community development 702  Mid Long Term
Planning
750.090 ‐ Residential/Mixed Use
Design
100‐71‐702 ‐  General Fund‐Planning‐Mid
Long Term Planning
194,922.00 0.00 0.00 In Progress Summer 2025 Delays in prjoect due to previous contractor/consultant and Housing
Element. First community meeting to
be held on Feb 10, in hybrid format.

FY22
Community development 702 Mid Long Term
Planning
750.101 ‐ CWP RHNA and Gen Pla n
Update
100‐71‐702 ‐ General Fund‐Planning‐Mid
Long Term Planning
422,564.00 46,095.75 378,394.22 Completed Sep 2024 Completed in September, when the City received notice from HCD that
the Housing Element complies with
State law. Housing Element
implementation policies will be
presented for Commission and
Council input as project progesses.

Community development 702 Mid Long Term
Planning
750.102 ‐ CWP Sign Ordinance
Update
100‐71‐702 ‐ General Fund‐Planning‐Mid
Long Term Planning
200,000.00 0.00 0.00 Not Started Spring 2025 RFP was released Winter 2024 to obtain consultant. Pending adoption
of CWP by Council to determine
budget and which projects can move
forward.

FY22
Community development 702  Mid Long Term
Planning
750.135 ‐ Laserfiche planning map
scanning
100‐71‐702 ‐  General Fund‐Planning‐Mid
Long Term Planning
726.00 0.00 0.00 In Progress Winter 2024 Ongoing Operational Item FY24
Community development 702  Mid Long Term
Planning
750.235 ‐ CWP Tree List 100‐71‐702 ‐  General Fund‐Planning‐Mid Long Term Planning
50,000.00 0.00 0.00 In Progress June 2025 Joing project with Public Works, RFP released to obtain consultant.

FY20
Community development 711 BMR Affordable
Housing Fund
750.052 ‐ Dev
elop ELI Housing 265‐ 72‐711 ‐ BMR Housing‐Housing Services‐ BMR Affordable Housing Fund
238,301.00 0.00 3,005.00 In Progress Winter 2025 Pending development of Mary Ave, then operational. Project is under
review in compliance with Exclusive
Negotiation Agreement (ENA).

Following the Negotiation period,
staff will present the Council with a
Disposition and Development
Agreement (DDA) and Lease
a
greement for the project and the
project will also concurrently go
through entitlement hearings.

FY22
Community development 714 Construction Plan
Check
750.031 ‐ Westport 100‐73‐714 ‐ General Fund‐Building‐ Construction Plan Check
89,621.00 1,087.50 33,194.23 In Progress 2026 Pending building permit status. The timeline is uncertain, however, staff
estimates the townhome portion
should be fully occupied within the
first quarter of 2025. The Se nior
BMR apartment building is complete
and fully occupied. The assisted
living parcel is currently under
redesign and will be submitted for
review in Fall 2025.

FY20
Community development 714  Construction Plan
Check
750.067 ‐ VTC 100‐73‐714 ‐  General Fund‐Building‐
Construction Plan Check
14,595,179.00 580.00 2,594,599.46 In Progress Ongoing This pertains to building permits and sta
ff estimates that the developer
will submit additional building
permits in 2025
FY20
Community development 715  Building Inspection 750.067 ‐ VTC 100‐73‐715 ‐  General Fund‐Building‐Building Inspection
5,406,634.00 0.00 0.00 Not Started This pertains to building inspections required for this project. It is
estimated that permits will be
submitted this year for permitting
and possible inspections starting in
2026.

FY
22 Information Services 308   Applications 750.123 ‐ Redesign of City Website 100 ‐32‐308 ‐  General Fund‐I&T Applications‐ Applications
3,481.00 0.00 3,481.31 Comp leted 12/30/2024 Proposed to defund at midyear FY23
Information Services 308   Applications 750.183 ‐ ACA Guide & Wrapper 100 ‐32‐308 ‐  General Fund‐I&T Applications‐ Applications
25,000.00 0.00 25,000.00 In Progress 6/30/2025
FY23
Information Services 308   Applications 750.184 ‐ Accela Roadmap 100 ‐32‐308 ‐  General Fund‐I&T Applications‐ Applications
23,000.00 0.00 23,000.00 In Progress 6/30/2025
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FY 2024-25 First Quarter Special Projects Attachment G
FY21
Information Services 308   Applications 750.236 ‐ Project Dox 100‐32‐308 ‐  General Fund‐I&T Applications‐ Applications
394.00 393.75 0.00 Completed 8/1/2024
FY23
Information Services 310   Infrastructure 750.199 ‐ City Facilities Video Capture
610‐34‐310 ‐  Innovation & Technology‐I&T
Infrastructure‐Infrastructure
6,079.00 0.00 0.00 Completed 6/30/2024
Proposed to defund at midyear
FY22
Information Services 986   GIS 750.166 ‐ AR McClellan Ranch 610‐ 35‐986 ‐  Innovation & Technology‐I&T GIS‐GIS
11,333.00 11,333.32 0.00 Completed 12/30/2024
FY23
Information Services 986   GIS 750.212 ‐ Laserfiche Scanning 610‐35‐986 ‐  Innovation & Technology‐I&T GIS‐GIS
4,099.00 0.00 4,098.54 Completed 9/30/2024
FY24
Information Services 986   GIS 750.238 ‐ VR Decarb 610‐35‐986 ‐  Innovation & Technology‐I&T GIS‐GIS
112,002.00 38,249.70 73,750.25 In Progress 6/30/2025
FY23
Law enforcement 200   Law Enforcement SC
Sherif
750.227 ‐ CWP Public Safety res/com
areas
100‐20‐200 ‐  General Fund‐Law Enforcement‐
Law Enforcement SC Sherif
60,000.00 62,250.00 62,250.00 In Progress 3/30/2025
FY24
Public works 122  Sustainability
Di
vision
750.025 ‐ Special Maintenance 100‐ 81‐122 ‐  General Fund‐Environmental Programs‐Sustainability Division
10,000.00 0.00 0.00 In Progress 6/30/25
FY22
Public works 122  Sustainability
Division
750.106 ‐ Electric Cooking Workshop
Series
100‐81‐122 ‐  General Fund‐Environmental
Programs‐Sustainability Division
6,400.00 0.00 0.00 In Progress 6/30/2025
FY24
Public works 122  Sustainability
Division
750.176 ‐ Climate AP Vision
Summary Doc
100‐81‐122 ‐  General Fund‐Environmental
Programs‐Sustainability Division
10,000.00 0.00 0.00 In Progress 6/30/2025 Carried over from last FY; Will confirm if IT has in base budget. They
may have paid for it. If so, this can be
removed
FY24
Public works 122  Sustainability
Division
750.223 ‐ CWP Electrification Study 100‐ 81‐122 ‐  General Fund‐Environmental Programs‐Sustainability Division
96,057.00 21,002.79 15,104.88 In Progress 6/30/2025
FY21
Public works 800  Public Works Admin 750.071 ‐ Municipal Water System 100‐ 80‐800 ‐  General Fund‐PW Administration‐Public Wo
rks Admin
5,811.00 8,796.00 0.00 In Progress 6/30/2025 Ongoing Legal Fees. Will be moved to base budget in FY26
FY25
Public works 800  Public Works Admin 750.244 ‐ CWP Recycled Water Feasibility
100‐80‐800 ‐  General Fund‐PW
Administration‐Public Works Admin
200,000.00 0.00 0.00 In Progress 6/30/2025
FY25
Public works 801  Resources Recovery 750.025 ‐ Special Maintenance 520‐ 81‐801 ‐  Resource Recovery‐ Environmental Progra
ms‐Resources Recovery
20,000.00 0.00 0.00 In Progress 6/30/2025 CAP dashboard pilot FY24
Public works 801  Resources Recovery 750.041 ‐ HHW and PaintCare 520 ‐81‐801 ‐  Resource Recovery‐ Environmental Programs‐Resources Recovery
161,010.00 66,540.50 0.00 In Progress Ongoing annual
project
SCC Household Hazardous Waste
program. Annual on‐going program
to cover residential drop off of items
that cannot be accepted by
Recology.

FY21
Public works 801 Resources R ecovery 750.084 ‐ Single Use Plastics Ordinance
520‐81‐801 ‐ Resource Recovery‐
Environmental Programs‐Resources Recovery
94,544.00 (1,205.00) 0.00 In Progress 1/31/2026 Ordinance implementation still in progress and on schedule. Contract
term extended.

FY22
Public works 801  Resources Recovery 750.137 ‐ SB1383 Procurement Requirements
520‐81‐801 ‐  Resource Recovery‐
Environmental Programs‐Resources Recovery
205,653.00 0.00 0.00 In Progress Ongoing annual
project
No completion date
FY22
Public works 801  Resources Recovery 750.174 ‐ New Lndfill Agrmnt/Solid Ws
t con
520‐81‐801 ‐  Resource Recovery‐
Environmental Programs‐Resources Recovery
103,542.00 24,660.00 47,266.25 In Progress 8/31/2025
FY20
Public works 802  Non Point Source 750.064 ‐ Low Income Cost Share 230 ‐81‐802 ‐  Env Mgmt Cln Crk Strm Drain‐ Environmental Programs‐Non Point Source
2,000.00 0.00 0.00 In Progress Ongoing Ongoing item will be moved to base budget in FY26
FY20
Public works 802  Non Point S ource 750.065 ‐ CUSD Joint Use Cost Share 230 ‐81‐802 ‐  Env Mgmt Cln Crk Strm Drain‐ Environmental Programs‐Non Point Source
8,707.00 0.00 0.00 In Progress Ongoing Ongoing item will be moved to base budget in FY26
FY19
Public works 804  Plan Review 750.039 ‐ PW Scanning Project 100 ‐82‐804 ‐  General Fund‐Developmental Services‐Plan Review
9,310.00 0.00 9,310.29 Completed Ongoing Funds are encumbered in Q1 for PW .

Remaining project will be funded by
IT.

FY20
Public works 804   Plan Review 750.067 ‐ VTC 100‐ 82‐804 ‐  General Fund‐Developmental Services‐Plan Review
1,961,366.00 14,065.00 1,182,523.68 In Progress Anticipated 2030 FY22
Public works 804  Plan Review 750.105 ‐ CWP Revisit 5G 100‐82‐804 ‐  General Fund‐Developmental Services‐Plan Review
250,000.00 0.00 0.00 In Progress 6/30/2025 Most of the work to date has been completed in‐house. Ongoing
cha
nges to related laws, limited
staffing resources, and other
priorities have resulted in delays to
finalization.
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FY 2024-25 First Quarter Special Projects Attachment G
FY20
Public works 807   Service Center Admin 750.043 ‐ Office Reconfiguration 100 ‐83‐807 ‐  General Fund‐Service Center‐ Service Center Administration
111,416.00 9,109.11 0.00 In Progress Ongoing Partial Defund at Q3, included in base budget
FY25
Public works 812  School Site
Maintenance
750.025 ‐ Special Maintenance 100‐ 84‐812 ‐  General Fund‐Grounds‐School Site Maintenance
10,500.00 0.00 0.00 In Progress 06/30/2025 Dugout roof replacement ‐ Hyde FY25
Public works 814  Sport Fields Jollyman
CRK
750.025 ‐ Spe cial Maintenance 100‐ 84‐814 ‐  General Fund‐Grounds‐Sport Fields Jollyman CRK
10,500.00 0.00 8,500.00 In Progress 06/30/2025 Dugout roof replacement ‐ Jollyman FY19
Public works 820  Sidewalk Curb and
Gutter
750.020 ‐ Annual Sidewalk Curb &
Gutter
270‐85‐820 ‐  Transportation Fund‐Streets‐
Sidewalk Curb and Gutter
2,776,484.00 0.00 1,588,567.91 In Progress 6/30/2025 Annual project FY24
Public works 825  Street Tree
Maintenance
750.235 ‐ CWP Tree List 100‐86‐825 ‐  General Fund‐Trees and Right of Way‐S
treet Tree Maintenance
60,000.00 0.00 0.00 In Progress 6/30/2025 Collaborating with CDD. Project currently awaiting CDD's completion
of RFP. RFP just went out
10/21/2024. CWP update from
Council may turn this into a Urban
Forest Master Plan.

FY25
Public works 827  Bldg Maint City Hall 750.025 ‐ Special Maintenance 100‐ 87‐827 ‐  General Fund‐Facilities and F
leet‐Bldg Maint City Hall
2,000.00 0.00 0.00 Not Started 6/30/2025 Burglar Alarm Upgrades FY25
Public works 828  Bldg Maint Library 750.025 ‐ Special Maintenance 100‐ 87‐828 ‐  General Fund‐Facilities and Fleet‐Bldg Maint Library
45,000.00 0.00 0.00 In Progress 6/30/2025 Library HVAC FY25
Public works 829  Bldg Maint Service
Center
750.025 ‐ Special Maintenance 100‐ 87‐829 ‐  General Fund‐Facilities and Fleet‐Bldg Maint Service Center
2,000.00 297.09 0.00 Not Started 6/30/2025 Burglar Alarm Upgrades FY
24 Public works 830  Bldg Maint Quinlan
Center
750.025 ‐ Special Maintenance 100‐ 87‐830 ‐  General Fund‐Facilities and Fleet‐Bldg Maint Quinlan Center
79,174.00 8,955.65 0.00 Not Started 6/30/2025 Security project FY24
Public works 831  Bldg Maint Senior
Center
750.025 ‐ Special Maintenance 100‐ 87‐831 ‐  General Fund‐Facilities and Fleet‐Bldg Maint Senior Center
123,675.00 0.00 0.00 Not Started 12/31/2025 Funds are allocated to replace kitchen HVAC unit.

FY
25 Public works 832  Bldg Maint McClellan 750.025 ‐ Special Maintenance 100‐87‐832 ‐  General Fund‐Facilities and
Fleet‐Bldg Maint McClellan Ranch 2,000.00 0.00 0.00
Not Started 12/31/2024 Burglar Alarm Upgrades
FY25
Public works 833  Bldg Maint Monta
Vista Ct
750.025 ‐ Special Maintenance 100‐ 87‐833 ‐  General Fund‐Facilities and Fleet‐Bldg Maint Monta Vista Ct
2,000.00 0.00 0.00 Not Started 6/30/2025 Burglar Alarm Upgrades FY
23 Public works 836  Bldg Maint Sports
Center
750.025 ‐ Special Maintenance 570‐ 87‐836 ‐  Sports Center‐Facilities and Fleet‐Bldg Maint Sports Center
45,705.00 20,169.00 0.00 In Progress 12/31/2025 HVAC repair (in progress), raquetball court (November 2024)
FY25
Public works 838  Comm Hall Bldg
Maint
750.025 ‐ Special Maintenance 100‐ 87‐838 ‐  General Fund‐Facilities and Fleet‐Comm Hall Bldg Maint
2,000.00 0.00 0.00 Not Started 6/30/2025 Burglar Alarm Upgrades FY
23 Public works 844  Traffic Engineering 750.040 ‐ Planned Transportation Project
100‐88‐844 ‐  General Fund‐Transportation‐
Traffic Engineering
2,788.00 2,565.00 222.50 Completed 6/30/2025
FY22
Public works 844  Traffic Engineering 750.163 ‐ VMT to LOS Standards 100 ‐88‐844 ‐  General Fund‐Transportation‐ Traffic Engineering
30,637.00 10,800.26 19,776.97 In Progress 6/30/2025
FY23
Public works 844  Traffic Engineering 750.219 ‐ CWP Bicycle Facilities 100 ‐88‐844 ‐  General Fund‐Transportation‐ Traffic Engineering
50,000.00 0.00 0.00 In Progress 6/30/2025 No progress since last quarterly report.

FY
23 Public works 844 Traffic Engineering 750.231 ‐ SC Corridor Vision Study 100‐ 88‐844 ‐ General Fund‐Transportation‐ Traffic Engineering
154,079.00 151,968.63 0.00 In Progress 6/30/2025
FY23
Public works 844 Traffic Engineering 750.242 ‐ AC2 Traffic Monitoring 100 ‐88‐844 ‐ General Fund‐Transportation‐ Traffic Engineering
42,975.00 0.00 42,975.00 Completed 6/30/2026 Funds encumbered. Waiting for invoices. Completed for this FY.

FY25 Public works 844  Traffic Engineering 750.243 ‐ CWP Active Transportation 100‐88‐844 ‐  General Fund‐Tra nsportation‐
Traffic Engineering 330,000.00 0.00 0.00
In Progress 6/30/2025
FY23
Public works 853  Storm Drain Fee 750.063 ‐ Rainwater Capture 230 ‐81‐853 ‐  Env Mgmt Cln Crk Strm Drain‐ Environmental Programs‐Storm Drain Fee
28,207.00 6,634.62 9,072.44 In Progress Ongoing annual project
FY20 Public works 854  General Fund Subsidy 750.065 ‐ CUSD Joint Use Cost Share 230‐81‐854 ‐  Env Mgmt Cln Crk Strm Drain‐
Environmental Programs‐General Fund
Subsidy 0.00 17,672.77 0.00
In Progress Ongoing annual purchase
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Department
Granting
Agency Name of Grant Description/Purpose of Grant
Requested
Grant Amount
Date
Applied
Date
Due
Grant Application
Status (Grant
Awarded,
Pending Results,
Grant Denied)
Grant Amount
Awarded
City Matching
Funds Required?
Yes/No; If yes,
please include
amount Date Awarded
Grant
Amount
Spent
Grant
Amount
Remaining
Is Grant Active
or Closed or
N/A?
Innovation and
Technology
CA Energy
Commission
California Automated Permit
Processing (CalAPP) Program
CalAPP is proving a one time grant
for the enhancement of Solar permit
applications
$60,000 2/15/2023 5/31/2027 Grant Awarded $60,000 $45,020 4/4/2023 $0 $35,520 Active Public Works CalSTA TIRCP (Transit and Intercity Rail
Program)
5‐year expansion of Via shuttle,
including partnership with City of
Santa Clara
$8,465,000 3/3/2022 3/8/2022 Grant Awarded $8,465,000 No ʺrequiredʺ match, but City
must fund the non
grant‐funded
balance of the
program, or
$8,465,000.  This is
shared with City of
7/11/2022
Public Works Caltrans HSIP (Highway Safety
Improvement Program)
Improving safety on roadway
segments
$3,561,800 9/12/2022 9/12/2022 Grant Awarded $3,205,620 $356,180 3/15/2023 $3,444 $3,202,176 Active Public Works FHWA Safe Streets 4 All (SS4A) Bollinger Road road diet traffic analysis, outreach and engineering
design
$532,000 7/10/2023 7/10/2023 Grant Awarded $425,600 $106,400 12/13/2023 Public Works HUD Federal Community Project
Funding Grant FY22
Funding for Cupertino Library
Expansion project
$1,000,000 3/25/2021 6/10/2022 Grant Awarded $1,000,000 No 2/15/2024 $0 $1,000,000 Active Public Works CA Parks and
Recreation Dept. State Specified Grant
Funding for Jollyman All Inclusive
Play Area
$1,000,000 3/17/2022 7/1/2022 Grant Awarded $1,000,000 No N/A $0 $1,000,000 Active Public Works CA DOT McClellan Road Bridge
Reconstruction
State Funding Grant (Evan Lo) $7,500,000 3/17/2022 7/1/2022 Grant Awarded $5,000,000 No N/A $0 $7,500,000 Active Public Works Santa Clara
County
Santa Clara County AIPG Funding for Jollyman All Inclusive Play Area
$1,440,000 10/10/2018 10/12/2018 Grant Awarded $1,440,000 $1,591,799 5/13/2019 $0 $1,440,000 Active Public Works VTA 2016 Measure B Capital Projects Funding for Tamien Innu (I‐280 Trail)‐East
$1,936,000 12/1/2021 12/1/2021 Grant Awarded $1,936,000 $830,000 (30% of total project cost ‐
includes both
Me
asure B Grants)
11/12/2021 $0 $1,936,000 Active
Public Works VTA 2016 Measure B Capital Projects Funding for Tamien Innu (I‐280 Trail)‐Central
$460,000 7/1/2020 7/1/2020 Grant Awarded $460,000 $1,795,000 (30% of project cost ‐
includes both
Measure B Grants)
7/14/2020 $110,802 $349,198 Active
Public Works VTA 2016 Measure B Capital Projects Funding for Tamien Innu (I‐280 Trail)‐Central
$3,725,000 7/1/2020 7/1/2020 Grant Awarded $3,725,000 $1,795,000 (30% of project cost ‐
includes both
Measure B Grants)
7/14/2020 $0 $3,725,000 Active
Public Works California Office
of Traffic Safety
(OTS)
Pedestrian and Bicycle Safety
Program
Bicycle and Pedestrian Traffic
Safety Education
$152,000 1/31/2024 1/31/2024 Grant Awarded $160,000 No 10/22/2024 $0 $160,000 Active Public Works FHWA BPMP (Bridge Preventative
Maintenance Program)
Funding for recommended
preventative maintenance on local
roadway bridges
$1,144,472 9/30/2020 N/A Grant Awarded $1,144,472 $148,278 4/12/2023 $965,930 $178,155 Active Public Works FHWA HBP (Highway Bridge Program) Repairs to bridge 37C0011, SCB over Stevens Creek
$688,000 10/5/2018 N/A Grant Awarded $688,000 $172,000 10/12/2018 $0 $688,000 Active Public Works BAAQMD BAAQMD ‐ TFCA 40% Fund
(Transportation Fund for Clean
Air)
Funding for year three (FY25) of
Silicon Valley (SV) Hopper.
$500,000 3/14/2024 3/15/2024 Grant Awarded $500,000 No ʺrequiredʺ match, but City
must fund the no n
grant‐funded
balance of the
program.  Cityʹs
contribution is
$882,704.

N/A $0 $500,000 Active
Competitive Citywide Grants Tracking - FY25 Mid-Year Update 192
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Department
Granting
Agency Name of Grant Description/Purpose of Grant
Requested
Grant Amount
Date
Applied
Date
Due
Grant Application
Status (Grant
Awarded,
Pending Results,
Grant Denied)
Grant Amount
Awarded
City Matching
Funds Required?
Yes/No; If yes,
please include
amount Date Awarded
Grant
Amount
Spent
Grant
Amount
Remaining
Is Grant Active
or Closed or
N/A?
Competitive Citywide Grants Tracking - FY25 Mid-Year Update Public Works SVCE Community Decarbonization
Engagement Grant
Competitive grant for community
engagement around
decarbonization topics from SVCE.

Grant Funds shall be disbursed to
Recipient on a reimbursement basis.
$100,000 4/1/2022 4/4/2022 Grant Awarded $111,500 No 2/2/2023 $0 $111,500 Active Parks and Recreation NRPA NRPA: Supporting Healthy
Aging Through Parks and
Recreation 3.0
With the support of the Centers for
Disease Control and P revention
(CDC), NRPA is offering instructor
training grants for five arthritis‐
appropriate, evidence‐based
interventions (AAEBIs). Essentially,
these are physical activity classes
that are proven to help people with
hii b ll
$0 10/20/2023 10/23/2023 Grant Awarded $0 ‐ Grant
provides
instructor
training and
material/equip
ment for the
class
No 11/28/2023 $0 $0 Active
Public Works MTC One Bay Area Grant (OBAG)
Cycle 2
Stevens Creek Blvd Protected Bike
Lanes Phase 2
$807,000 7/28/2016 N/A Grant Awarded $807,000 Yes, $93,000 (11.47% of project cost)
1/24/2022 $3,230 $803,770 Active
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Department Granting Agency Name of Grant Description/Purpose of Grant Requested
Grant Amount
Date
Applied Date Due
Status (Grant
Awarded,
Pending Results,
Grant Denied) Grant Amount Awarded Date Awarded Grant Amount Spent Grant Amount
Remaining
Is Grant Active
or Closed or
N/A?
Administration Santa Clara County
(CalOES)
Emergency Management
Performance Grant
(EMPG)
Performance Grant (EMPG) program is one of the grant programs that constitute DHS /FEMA’s focus on all‐hazards emergency preparedness.

These grant programs are part of a comprehensive set of measures authorized by Congress and implemented by DHS. Among the goals noted in the DHS Strategic Plan, the EMPG program supports the goal to Strengthen Preparedness and Resilience.
$11,000 N/A N/A Grant Awarded $11,000 N/A $2,471 $               8,529 Active Public Wo rks DOE Energy Efficiency
Community Block Grant
EECBG funds for use in developing energy efficiency services or strategies, code enforcement, other uses
$125,790 N/A 4/28/2023 Grant Awarded $125,790 7/2/2024 $0 $125,790 Active Administration/
Community
Development
Department
County of Santa
Clara (Simitian)
Homeless Services and
Supports
A matching grant of $50,000 for the City of Cupertino, which currently funds several assistance programs for unho
used residents. These
programs include Haven to Home, a program run by West Valley Community Services that offers bus passes, laundry quarters, hygiene kits, foods assistance, and other forms of assistance, as well as a Rotating Safe Car Park program that serves Saratoga and Cupertino and is operated by Amigos de Gu adalupe and West Valley Community Services. Use of the additional $50k will be determined. $50,000 4/29/2024 4/29/2024 Grant Awarded $50,000 TBD $0 $50,000 Active Community
Development
De
partment
HUD Community Development
Block Grant (CDBG)
U.S. Dept of Housing & Urban Development (HUD) Federal Entitlement Allocation ‐ FY 2023‐24
$358,910 7/31/2023 Annually: 6/30 Grant Awarded $358,910 7/21/2023 $193,777 $           165,113 Active Community
Development
De
partment
HUD Community Development
Block Grant (CDBG)
U.S. Dept of Housing & Urban Development (HUD) Federal Entitlement Allocation ‐ FY 2024‐25
$173,313 11/18/2024 Annually: 6/30 Grant Awarded $173,313 11/6/2024 $9,553 $           163,760 Active Public Works VTA Bicycle/Pedestrian
Education &
Encouragement
2016 Measure B $33,090 9/8/2022 N/A Grant Awarded $38,082 7/1/2024 $18,000 $        20,082.00 Active Public Works Calrecycle CalRecycle Beverage
Container Recycling
City/County Payment
Program
Provide opportunities for beverage container recycling. Allowable uses in
clude 2 staff attending annual CA Resource Recovery Association conference, water refill stations, and recycling receptacles. $15,158 Funds must be
expensed
between
4/13/2023‐
3/1/2025
Annually: dates
vary
Grant Awarded $15,158 4/13/2023 $3,578 $        11,580.00 Active Public Works Calrecycle CalRecycle Beverage
Container Recycling
City/County Payment
Program
Provide opportunities for beverage container recycling. Allowable uses include 2 staff attending annual CA Resource Recovery Association conference, water refill stations, and recycling receptacles. $15,137 12/15/2023 Annually: dates
vary
Pending Results $15,137 Money not received yet
as of 2/2025; typically
receive in April‐ May

N/A N/A N/A
Public Works Calrecycle CalRecycle SB 1383 Local
Assistance Grant Program ‐
2023 cycle
Grant program meant to provide aid in the implementation of regulation requirements associated with SB 1383.
$161,264 11/14/2023 11/15/2023 Grant Awarded $161,264 5/22/2024 $0 161264 Active Public Works MTC TDA3 Funding for De Anza Blvd Buffered Bike Lanes $166,259 5/24/2023 5/26/2023 Grant Awarded $166,259 10/5/2023 $131,751 $34,508 Active Public Works MTC TDA3 Active Transportation Plan $330,000 5/16/2024 5/16/2024 Grant Awarded $330,000 10/3/2024 $0 $330,000 Active Non-Competitive Citywide Grants Tracking - FY25 Mid-Year Update 194
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CIP PROJECT AND STAFFING UPDATE January 1, 2025
Q2 - FY2024 – 2025 (October - December 2024):

Status of Current CIP Projects
The Capital Improvement Programs division continues to accomplish a great deal with limited resources. Two positions are currently vacant (for 1.5FTEs) and we are in the process of restarting recruitment, partnering with Human Resources division.

Facilities CIP Projects (orange) – 5 active projects, 4 queued Parks and Recreation CIP Projects (green) - 3 active projects, 1 queued Streets and Infrastructure CIP Projects (mauve) – 5 active projects, 1 completed Transportation (Traffic, Bike and Pedestrian) CIP Projects (blue) – 5 active projects, 2 queued, 1 completed
Total: 18 active projects, 7 queued, 2 completed.

Note: The color-coded project categories used here correlate to the terminology adopted in the five-year CIP annual proposal. These ‘types’ are descriptive rather than prescriptive, as many projects could fall into multiple categories.

COMPLETED PROJECTS
Project Title Description Notes
Vai Avenue Outfall Repair of an outfall at Vai Avenue. Completed in October 2024.

De Anza Boulevard
Buffered Bike Lanes
Restripe De Anza Blvd to include a
painted buffered zone between the
existing bike lane and the vehicle
lanes.

Completed in January 2025.

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Cupertino City CouncilMarch 4, 2025

Cupertino City Council
March 4, 2025