Cupertino City Council
May 15, 2025

Thursday, May 15, 2025
6 :00 PM

CITY OF CUPERTINO
Special Televised Meeting
10350 Torre Avenue, Council Chamber and via Teleconference; and T
eleconference Location Pursuant to Government Code section 54953(b)(2) Sheraton Stockholm, Tegelbacken 6, 101 23, 101 23 Stockholm, Sweden, Hotel Lobby
City Council

LIANG CHAO, MAYOR

KITTY MOORE, VICE MAYOR
J.R. FRUEN, COUNCILMEMBER

SHEILA MOHAN, COUNCILMEMBER
R "RAY" WANG, COUNCILMEMBER
AGENDA
1 CC 05-15-2025
1 of 655
City Council A genda May 15, 2025

IN-PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION Me
mbers 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 Thursday, May 15 to the Council at [email protected]. These e-mail comments will also be received by each City Councilmember, the City Manager, and the City Clerk’s Office. Comments on non-agenda items sent to any other email address will be included upon the sender's request.

Emailed comments received following the agenda publication, prior to or during the meeting, will be posted to the City’s website.

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

Members 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_OqN72_AnSIOfxnzlKXw6GA Phone

2 CC 05-15-2025
2 of 655
City Council A genda May 15, 2025
Dial: 669-900-6833 a nd enter Webinar ID: 884 3990 2201 (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)
206.247.11.121 (US East)
Meeting ID: 884 3990 2201
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.

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.

NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO CITY COUNCIL N
OTICE IS HEREBY GIVEN that a special meeting of the Cupertino City Council is hereby called for Thursday, May 15, 2025, commencing at 6:00 p.m. in Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, California 95014 and via teleconference, and

3 CC 05-15-2025
3 of 655
City Council A genda May 15, 2025
Teleconference Location Pursuant to Government Code section 54953( b)(2) Sheraton Stockholm, Tegelbacken 6, 101 23, 101 23 Stockholm, Sweden, Hotel Lobby. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting."

SPECIAL MEETING

CALL TO ORDER
P

LEDGE OF ALLEGIANCE

ROLL CALL

POSTPONEMENTS AND ORDERS OF THE DAY

CONSENT CALENDAR

1. Subject: Accept City Council Subcommittee recommendation regarding the 2025 July 4th fireworks
Recommended Action: Accept the City Council Subcommittee recommendation regarding the 2025 July 4th fireworks
Staff Report
A - Council Subcommittee Recommendation

PUBLIC HEARINGS
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.

2. Subject: Public Hearing Pursuant to Government Code Section 3502.3 to Receive a Report on City of Cupertino Vacancies, and Recruitment and Retention Efforts. (Continued from May 6, 2025)
Recommended Action: Receive the informational report on City of Cupertino Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3.

Staff Report
A - Assembly Bill 2561
CC 05-06-2025 Item No. 11. AB2561 Vacancy Rates Public Hearing_Staff Presentation (Added 5-5-25) CC 05-06-2025 Item No. 1 1. AB2561 Vacancy Rates Public Hearing_Supplemental Report (Added 5-6-2025)
CC 05-06-2025 Item No. 11. Attachment B - Vacancy Info (Added 5-6-2025)

4 CC 05-15-2025
4 of 655
City Council A genda May 15, 2025

ACTION CALENDAR

3. Subject: Per the Council's direction, review potential Capital Improvement Plan (CIP) projects to be defunded from the current approved list. (Continued from May 6, 2025) Recommended Action: C ity Council shall consider:

A) Which of the following projects to consider defunding and eliminating, or; B) Reaffirm the current Capital Improvement Programs project list.

Staff Report
A – FY 25-26 CIP Project Narratives-defunding review
B – FY 25-26 CIP Fiscal Summary Table
C – Photovoltaic Systems project cost analysis February 2025 CC 05-06-2025 Item No. 1 4 Review CIP Projects to be defunded_Written Communications (added 5-5-25)

STUDY SESSION

4. Subject: Initial Study Session on Fiscal Year (FY) 2025-26 Proposed Budget and FY 2025-26 Capital Improvement Programs
Recommended Action: Initial Study Session on Fiscal Year (FY) 2025-26 Proposed Budget and FY 2025-26 Capital Improvement Programs
A - FY 2025-26 Proposed Budget
B - FY 2025-26 CIP
C - FY 25-26 Community Funding Recommendation from Parks and Recreation Commission

ADJOURNMENT
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 Code §2.08.096. Contact the City Clerk’s office for more information or go to

5 CC 05-15-2025
5 of 655
City Council A genda May 15, 2025
http://www.cup ertino.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.

6 CC 05-15-2025
6 of 655

CITY OF CUPERTINO
Agenda Item
25-13991 Agenda Date: 5/15/2025
Agenda #: 1.

Subject: Accept City Council Subcommittee recommendation regarding the 2025 July 4th fireworks Accept the City Council Subcommittee recommendation regarding the 2025 July 4th fireworks CITY OF CUPERTINO Printed on 5/9/2025Page 1 of 1
powered by Legistar™
7 CC 05-15-2025
7 of 655

1 CITY COUNCIL STAFF REPORT
Meeting: May 15, 2025

Subject
Approve the City Council Subcommittee recommendatio n regarding the 2025 July 4th fireworks

Recommended Action
Approve the City Council Subcommittee recommendatio n regarding the 2025 July 4th fireworks

Reasons for Recommendation
On February 4, 2025, the City Council approved a budget allocation of $140,000 for the 2025 July 4th fireworks event and formed a City Council Subcommittee comprised of Councilmember R “Ray” Wang and Vice Mayor Kitty Moore to bring back specific event details for Council consideration. This allocation includes all expenses related to fireworks including staff time.

On March 18, 2025, the City Council received a verbal report from the Subcommittee regarding options and considerations for the 2025 July 4th fireworks event. The Council did not provide direction regarding the next steps.

The Subcommittee recommendation is outlined in Attachment A. Staff is seeking approval:

“Based on the response from Sand Hill and the availability at Hyde, it appears that the best venue will be Hyde Middle School.

At this moment, project status is the following:

1. Funding - secured

2. Venue - evaluated and recommended - Hyde

3. Vendor - City in discussions with Pyro Spectaculars and other providers

4. Permits - Parks and Rec

On behalf of Vice Mayor Moore and myself, our recommendation is to go with Hyde” 8 CC 05-15-2025
8 of 655
2 Nex
t Steps
If the Council approves the Subcommittee’s recommendation, staff will proceed with implementation including contracting with the vendor, securing permits, and coordinating logistics with the relevant departments and outside agencies.

Su
stainability Impact
There are no sustainability impact implications associated with this report.

Fi
scal Impact
The budget allocation of $140,000 for the fireworks event was approved on February 4, 2025, as part of the 2025 budget. The amount has been added as a recurring charge and is also included in the FY 2025–26 budget.

Ca
lifornia Environmental Quality Act
Not applicable.

Ci
ty Work Program (CWP) Item: No
CWP
Item Description: N/A
Co
uncil Goal: N/A
Prepared by: Kirsten Squarcia, City Clerk
Approved for Submission by: Tina Kapoor, Acting City Man ager Attachments:

A – Council Subcommittee Recommendation
9 CC 05-15-2025
9 of 655
From: R "Ray" Wang <[email protected]>
Sent: Saturday, April 26, 2025 9:53 AM
To: Pamela Wu <[email protected]>; Rachelle Sander <[email protected]>; Michael Woo <[email protected]>
Cc: Kitty Moore <[email protected]>; Floy Andrews <[email protected]> Subject: FOURTH OF JULY FIREWORKS

Dear CM Wu, CDA Woo, Director Saner,

Based on the response from Sand Hill and the availability at Hyde, it appears that the best venue will be Hyde Middle School.

At this moment, project status is the following:

1. Funding - secured

2. Venue - evaluated and recommended - Hyde

3. Vendor - City in discussions with Pyro Spectaculars and other providers

4. Permits - Parks and Rec

On behalf of Vice Mayor Moore and myself, our recommendation is to go with Hyde but we are open to hear any other input from Director Sander or CM Wu on venue.

Look forward to providing this update to the rest of the City Council and public at the appropriate time.

Thank you for all your hard work.

R

R "Ray" Wang
Councilmember
City Council
[email protected]

10 CC 05-15-2025
10 of 655

CITY OF CUPERTINO
Agenda Item
25-13961 Agenda Date: 5/15/2025
Agenda #: 2.

Subject: Public Hearing Pursuant to Government Code Section 3502.3 to Receive a Report on City of Cupertino Vacancies, and Recruitment and Retention Efforts. (Continued from May 6, 2025) Receive the informational report on City of Cupertino Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3.

CITY OF CUPERTINO Printed on 5/9/2025Page 1 of 1
powered by Legistar™
11 CC 05-15-2025
11 of 655

CITY COUNCIL STAFF REPORT
Meeting: May 15, 2025

Subject
Public Hearing Pursuant to Government Code Section 3502.3 to Receive a Report on City of Cupertino Vacancies, and Recruitment and Retention Efforts.

Recommended Action
Receive the informational report on City of Cupertino Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3.

Background
As part of the FY 2024-25 Mid-Year Financial Report on March 4, 2024. City staff informed City Council of vacancy reporting requirements ahead of budget adoption. Assembly Bill ("AB") 2561, codified in Government Code section 3502.3, passed in 2024, and r equires public agencies to hold a public hearing to address the status of job vacancies prior to the adoption of the upcoming final budget. During this public hearing, the City must present information on the status of vacancies and the City's recruitment and retention efforts. If necessary, the City will identify necessary changes to policies, procedures, or recruitment activities that may lead to obstacles in the hiring process. This public hearing will ensure compliance with the new law.

Reasons for Recommendation
Assembly Bill (“AB”) 2561 , passed in 2024, requires public agencies to hold a public hearing to address the status of job vacancies prior to the adoption of the upcoming final budget. Staff will present the following required information at the public hearing:

1. The status of vacancies at the City of Cupertino.

2. Information on the City of Cupertino’s recruitment and retention efforts.

3. Obstacles in the City of Cupertino's policies, procedures, and recruitment activities that may create challenges in the hiring process.

12 CC 05-15-2025
12 of 655

Based on the findings, staff recommends that Council receive the informational report on City of Cupertino Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3.

As of April 14, 2025, there are no bargaining units with a vacancy rate exceeding 20%. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the staff presentation will also include the following information:

1. The total number of job vacancies within the bargaining unit.

2. The total number of applicants for vacant positions within the bargaining unit.

3. The average number of days to complete the hiring process from when a position is posted.

4. Opportunities to improve compensation and other working conditions.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.

City Work Program (CWP) Item/Description
None

California Environmental Quality Act
No California Environmental Quality Act impact.

_____________________________________

Prepared by: Vanessa Guerra, Human Resources Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Bargaining Unit Total
Positions
Vacant
Positions
Vacancy
Rate As of
4/14/2025
Cupertino Employees’ Association (CEA)/IFPTE
Local 21
72 8 11.1%
Operating Engineers Local No. 3 Union, AFL-CIO
(OE3)
52 5 9.6%
Unrepresented Management/Appointed Employees 78 8 10.3% TOTAL (Does not include 5 Council positions) 202 21 10.4% 13 CC 05-15-2025
13 of 655

Floy Andrews, City Attorney
Approved for Submission by: Tina Kapoor, Acting City Manager Attachments:

A – Assembly Bill 2561
14 CC 05-15-2025
14 of 655
Assembly Bill No. 2561
CHAPTER 409
An act to add Section 3502.3 to the Government Code, relating to public employment. [ Approved by Governor September 22, 2024. Filed with Secretary of State September 22, 2024. ]

LEGISLATIVE COUNSEL'S DIGEST
AB 2561, McKinnor. Local public employees: vacant positions.

Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action.

This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings.

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.

Digest Key
V ote: majority
Appropriation: no Fiscal Committee: yes Local Program: yes Bill Text
4/30/25, 9:49 AM California-2023-AB2561-Chaptered
https://legiscan.com/CA/text/AB2561/id/3022144/California-2023-AB2561-Chaptered.html 1/315 CC 05-15-2025
15 of 655

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS
FOLLOWS:

SECTION 1. The Legislature finds and declares as follows:
(a) Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements. (b) High job vacancies impact public service delivery and the workers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges.
(c) There is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations.

SEC. 2. Section 3502.3 is added to the Government Code, to read:
3502.3. (a) (1) A public agency shall present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year. (2) If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget. (3) During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. (b) The recognized employee organization for a bargaining unit shall be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit.
(c) If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agency shall, upon request of the recognized employee organization, include all of the following information during the public hearing:
(1) The total number of job vacancies within the bargaining unit. (2) The total number of applicants for vacant positions within the bargaining unit. (3) The average number of days to complete the hiring process from when a position is posted. (4) Opportunities to improve compensation and other working conditions. (d) This section shall not prevent the governing board from holding additional public hearings about vacancies. (e) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(f) For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501.
4/30/25, 9:49 AM California-2023-AB2561-Chaptered
https://legiscan.com/CA/text/AB2561/id/3022144/California-2023-AB2561-Chaptered.html 2/316 CC 05-15-2025
16 of 655
SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:

It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public.

SEC. 4.

No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.
4/30/25, 9:49 AM California-2023-AB2561-Chaptered
https://legiscan.com/CA/text/AB2561/id/3022144/California-2023-AB2561-Chaptered.html 3/317 CC 05-15-2025
17 of 655
AB2561 Vacancy Rates Public
Hearing

CITY OF CUPERTINO
City Council Meeting May 6, 2025
18 CC 05-15-2025
18 of 655
AB 2561 requires that, on an annual basis, public agencies assess and address vacancy rates as well as:

1. Track job vacancies;

2. Present information on the status of the vacancies and recruitment and retention efforts at least once per fiscal year; and

3. Identify any policies, procedures, and recruitment activities that may present obstacles in hiring.

4. Additional Obligations May Apply if the Vacancy Rate in a Bargaining Unit Exceeds 20%.

Assembly Bill (AB) 2561
19 CC 05-15-2025
19 of 655
City of Cupertino Bargaining Units
Bargaining Unit Represented Classifications
Operating Engineers Local
No. 3 Union, AFL-CIO (OE3)
Maintenance positions
Cupertino Employees
Association/IFPTE Local 21
(CEA)
Professional, paraprofessional,
technical, clerical positions
Unrepresented
Employees/Appointed
Employees
Management, Confidential
positions/Appointed by City
Council
20 CC 05-15-2025
20 of 655
Budgeted Full-Time Equivalent (FE)
Full-Time (Excludes Part- Time staff)
21 CC 05-15-2025
21 of 655
New Hires and Promotions
39 29 27
20 22
16 38
19 14
20 11
7 6
14 13
6 8
15 9
6 0
10 20
30 40
50 60
FY
15/16
FY
16/17
FY
17/18
FY
18/19
FY
19/20
FY
20/21
FY
21/22
FY
22/23
FY
23/24
FY
24/25
New Hire Promotion
YTD
Through
4/14/2025
22 CC 05-15-2025
22 of 655
Vacancy Rates by Dept. (as of 4/14/25)
Department Total FTE Vacant FTE Vacancy Rate
City Manager’s Office 17 2 11.8%
City Attorney's Office 3 1 33.3%
Administrative Services 18 2 11.1%
Community Development 35 6 17.1%
Innovation & Technology 14 0 0%
Parks and Recreation 28 2 7.1%
Public Works 87 8 9.2%
Total 202 21 10.4%
23 CC 05-15-2025
23 of 655
Vacancy Rates by Bargaining Unit*
Bargaining Unit Budgeted FTE Filled FTE Vacancy Rate
Operating
Engineers Local
No. 3 Union, AFL-
CIO (OE3)
52 47 9.6%
Cupertino
Employees
Association/IFPTE
Local 21 (CEA)
72 64 11.1%
Unrepresented
Employees/App
ointed
Employees
78 70 10.3%
24 CC 05-15-2025
24 of 655
Recruitment Processes
25 CC 05-15-2025
25 of 655
Recommendation and Alternatives
Staff Recommendation
Accept Vacancy Report and Conduct Public Hearing
26 CC 05-15-2025
26 of 655
1 CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: May 6, 2025

Agenda Item #11

Subject
Public Hearing Pursuant to Government Code Section 3502.3 to Receive a Report on City of Cupertino Vacancies, and Recruitment and Retention Efforts.

Recommended Action
Receive the informational report on City of Cupertino Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3.

Background:

Staff’s responses to questions received from councilmembers are shown in italics.

Q1: I understand that the city often does not immediately start recruitment when a position becomes vacant. One example is the Assistant City Manager position, which has been vacant for one year and recruitment only started recently/ For example, the position of Emergency Manager (Tom Chin) has been vacant for 4 months, but the city manager decides to hire a consultant. Could we get a list of these vacant positions, the date they have become vacant, the status of recruitment (when recruitment was started if at all or expected date to start recruitment if at all, any reason on whether to delay recruitment)? ( Mayor Chao)
Staff Response: Please see attached spreadsheet

Q2: We have also some vacancy due to retirement. For example, I learned that one member of the 4-member video team required at the end of last year and the city did not plan to fill that position. Is that counted as one vacant position in this report? (When the position is there, but the city does not plan to fill it.) (Mayor Chao) Staff Response: This position was filled through recruitment.

27 CC 05-15-2025
27 of 655
2 Q3: I have learned that another member of the remaining video team will retire soon, likely in June. What is the recruitment plan so that the video team is not understaffed, especially when we know of upcoming retirement ahead of time? (Mayor Chao) Staff Response: It is tentative at this time, as there is no confirmation of a pending retirement in video.

Q4: Even though not required by AB 2561, I would still like to know what retention efforts were made in the past few years? (Mayor Chao)
Staff Response: The City’s retention efforts include a variety of programs such as employee engagement events, investing in our employees with robust professional training and development opportunities and a competitive salary and benefits program.

Attachments Provided with Original Staff Report:

A – Assembly Bill 2561
Attachments Provided with Supplemental:

B – Vacancy Info

28 CC 05-15-2025
28 of 655
Dept Position Class Title (working title) Status Bargaining Unit # of Vacancies Date Vacant AS Budget Manager Waiting for new Assistant Director Classification requested at Proposed Budget
Unrep 1 7/13/2024
AS Management Analyst - overfilling Account Clerk I/II recruitment posted CEA 1 1/11/2025 CAO City Attorney None Appointed 1 2/23/2025
CDD Associate Planner recruitment posted CEA 1 4/1/2023 CDD Code Enforcement Officer recruitment posted CEA 1 6/9/2022 CDD Planning Manager (Housing Manager) Underfill with Assistant Housing Coordinator Classification requested at Proposed Budget
Unrep 1 5/3/2023
CDD Associate Planner recruitment posted CEA 1 4/5/2025 CDD Senior Planner recruitment posted CEA 1 6/9/2022
CDD Senior Code Enforcement Officer pending acting assignment/posting July 2025 CEA 1 1/10/2025 CMO Assistant City Manager recruitment plan discussed Unrep 1 6/8/2024 CMO Senior Office Assistant posting mid May CEA 1 7/1/2023 PW Assistant Engineer None CEA 1 4/27/2024
PW Maintenance Worker I/II recruitment posted OE3 1 10/21/2024 PW Maintenance Worker I/II recruitment posted OE3 1 12/30/2024 PW Maintenance Worker I/II recruitment posted OE3 1 2/18/2025 PW Maintenance Lead posting mid May OE3 1 3/4/2025
PW Administrative Assistant recruitment posted Unrep 1 3/24/2025 PW Maintenance Lead posting mid May OE3 1 4/5/2025
REC Management Analyst (Emergency Analyst) None Unrep 1 5/11/2024 REC Assistant Director Parks and Recreation posting mid May Unrep 1 1/31/2025 Total 20
CC 05-06-2025 Item No. 11. Attachment B
29 CC 05-15-2025
29 of 655

CITY OF CUPERTINO
Agenda Item
25-13962 Agenda Date: 5/15/2025
Agenda #: 3.

Subject: Per the Council's direction, review potential Capital Improvement Plan (CIP) projects to be defunded from the current approved list. (Continued from May 6, 2025) City Council shall consider:

A) Which of the following projects to consider defunding and eliminating, or; B) Reaffirm the current Capital Improvement Programs project list.

CITY OF CUPERTINO Printed on 5/9/2025Page 1 of 1
powered by Legistar™
30 CC 05-15-2025
30 of 655

CITY COUNCIL STAFF REPORT
Meeting: May 15, 2025

Subject
Per the Council’s direction, review potential Capital Improvement Plan (CIP) projects to be defunded from the current approved list.

Recommended Action
City Council shall consider:

A) Which of the following projects to consider defunding and eliminating, or; B) Reaffirm the current Capital Improvement Programs project list.

Background
The proposed Fiscal Year (FY) 2025-2026 CIP and Five-year Plan was presented to the City Council on April 2. The Council instructed staff to identify potential CIP projects to be considered for removal or reduction in scope, and to be discussed in May. The motion from the April 2 meeting is as follows:

MOTION: Chao moved and Moore seconded to approve the $2 million funding for the three projects proposed by staff, including the following input:
• City Hall Annex to move forward with 100% design
• City Hall renovation to come back in October/November, including financing options, cost-benefit analysis
• Potential items to consider for removal or reduction in scope – based on Council input at the meeting or later – to come back in May • Capital budget format goes to Audit Committee for consideration

Following the Council’s direction, staff has engaged with individual council members to survey which existing CIP projects should be considered for removal or reduction in the current approved scope. The following list comprises individual councilmember’s suggestions:

1. Stevens Creek Boulevard CL IV Bikeway - Phase 2A Construction & Design of Phase 2: requested by Councilmember Wang for defunding consideration.

2. Stevens Creek Boulevard CL IV Bikeway - Phase 2B Construction: requested by Councilmember Wang for defunding consideration.

3. Stevens Creek Boulevard CL IV Bikeway - Bandley Dr. Signal: requested by Councilmember Wang for defunding consideration.
31 CC 05-15-2025
31 of 655

4. Photovoltaic Systems Design and Installation: requested by Councilmembers Chao and Wang for potential reduction in the scope.

5. Bollinger Road Corridor Study: requested by Councilmembers Moore and Wang for defunding consideration.

6. Silicon Valley Hopper EV Parking: requested by Councilmember Wang for defunding consideration.

Refer to Attachments A and B for information shared on these projects at the April 2 Council meeting. Attachment C is cost analysis information on the Photovoltaic Systems Design and Installation project from the presentation to the City Council on February 4 in the context of awarding the design-build contract.

Available Options
In the sections that follow, information is provided on the existing funding and the fiscal impacts of defunding or continuing with each project.

1. Stevens Creek Boulevard Class IV Bikeway - Phase 2A Construction & Design of Phase 2

Project Description: Phase 2A includes design and construction of the separated bikeway along Stevens Creek Boulevard (SCB) from Wolfe Road to De Anza Blvd.

Improvements include traffic signal modifications at Wolfe Road and De Anza Blvd. to provide separate bicycle phasing.

SCB Class IV Bikeways is the top priority from the 2016 Bicycle Transportation plan (BTP), and a Tier One priority of the 2018 Pedestrian Transportation Plan (PTP) – improving vehicular, bicyclist and pedestrian safety along one of Cupertino’s busiest arteries was considered a highly important project. This project is also a subsequent phase of a previous project (Phase 1). Phase 2 Design was approved as part of the FY2020-2021 CIP, and Phase 2 Construction was approved as a new project in the FY2021-2022 CIP.

Status of the project: The SCB Class IV Bikeway, Phase 2A will begin construction activities in summer 2025. The contractor is currently procuring materials with long lead times. Project completion is expected by the end of the calendar year.

Funding: The City anticipates receiving the grant funds upon completion of Phase 2A as noted in the tables below. The grant funds will not increase the project funding but will be used to reduce the expenditure of City funds allocated to the project.

//

//
32 CC 05-15-2025
32 of 655

TABLE 1A
Project name Project Description Year
Initiated
Approved
Funding
Project
Total
Unencumbered
Funds
Stevens
Creek Blvd.

Class IV
Bikeway
Phase 2A
Design (2A and 2B) and
Construction (2A) of the
separated bikeway along
Stevens Creek Blvd. from
Wolfe Road to DeAnza
Blvd. (Externally Funded,
in part)
FY20-21 $350,000 $2,350,000 $277,829

Expenses to
date: ~$310,000
Construction, City Funding FY21-22 $2,000,000
OBAG FY24-25 $807,000
SB1 FY24-25 $693,000

Fiscal Summary: The project (Phase 2A) has a total of $2,350,000 in City funding, not including grants. Approximately $310K has been spent to date, and the project is expected to have $2.2 million in expenses by the end of the project. The fiscal summary from the 2/04/25 mtg is copied below.

TABLE 1B - FISCAL SUMMARY (information from February 4 Staff report) Current Funding Status (Budget) Amount
City Approved Funds FY 21 – Phase 2A and 2B Design
Phase
$350,000
City Approved Funds FY 22 – Construction (Phase 2A) $2,000,000 Design and Construction Phase 2 – Subtotals:
(budget unit 420-99-036)
$2,350,000

Projected Funding Impact (Expenses) Amount
Design Phase Expenditures to date ($213,863)
Design Phase (for Phase 2B Design completion) ($96,620) *Construction Contract ($1,569,798 base contract and
$156,980 contingency)
($1,726,778)
*Construction Management ($185,000)
Subtotal: ($2,222,261)
*If Phase 2A project were defunded, a portion of these funds could be recovered.

Summary Amount
Current Project Budget (420-99-036) $2,500,090
Projected Funding Impact ($2,222,261)
Remaining Funds: $277,829

33 CC 05-15-2025
33 of 655

Construction Phase 2A
External Funding
Amount Local Match Total Amount
One Bay Area Grant (OBAG) **$807,000 $93,000 $900,000
Senate Bill 1 (SB1) **$693,000 $32,000 $725,000
Total **$1,500,000 $125,000 $1,625,000
**The grant funds will offset Phase 2A expenditures.

Option 1 – Defund the Project
Defunding the project would allow approximately $2.04 million ($2,350,000 - $310,000 = $2,040,000) of City funds to be reallocated, pending resolution of expenditures on the construction contract and construction management contracts which are not accounted for presently. The City has paid approximately $310,000 in design phase expenses for Phase 2A and 2B.

The SB1 funding ($693,000) can be reallocated to another qualifying project. The VTA OBAG-2 funding ($807,000) would be lost. While it is possible that VTA would allow relocation of these funds, it is highly unlikely. This action could also hinder the City’s ability to secure OBAG grant funding in the future.

The City would also be cancelling two fully executed contracts for construction and construction management/inspection. The City has a “termination for convenience” clause built into our contracts. The City will need to provide some compensation to the contractor for activities to date, but this would be a relatively small portion of the contract total. At this time, an estimate would be $25K to $50K. With regards to future project bids, there could be some impacts as some contractors may decide to focus bidding efforts on projects from other Cities or private entities that do not have a history of terminating contracts. Additionally, these contractors would most likely be reluctant to spend time and effort on future bids in Cupertino.

Option 2 – Continue with the Project
Phase 2A construction has $1,500,000 in external funding which offsets the actual cost to the city to approximately $725K. ($2,222,261 - $1,500,000 = $722,261).

TABLE 1C – FISCAL IMPACT OF DEFUNDING
Options Approved
City Funding
*Expenses/
Encumbrances
Grant
Funding
Applied
Funding
Return
Defund $2,350,000 ($310,000) $2,040,000
Proceed $2,350,000 ($2,222,261) $1,500,000 $1,627,739 Difference $412,261
*Expenses-to-date are noted in the context of Defunding. Encumbrances (contracts) are considered if proceeding with the project.

34 CC 05-15-2025
34 of 655

2. Stevens Creek Boulevard Class IV Bikeway - Phase 2B Construction

Project Description: Phase 2B includes construction of the separated bikeway along SCB from De Anza Blvd. to Highway 85.

The designs for SCB Phase 2A and 2B were jointly funded. SCB Bikeway Phase 2B and the Bandley Drive Signal Upgrade projects are intended to be combined during construction to increase efficiency, however funding is noted separately because the Bandley intersection project is partially funded with developer in-lieu fees.

This project is designated as a priority in the BTP and PTP and is a subsequent phase of a previous project (Phase 1 and 2A). Improving vehicular, pedestrian and bicyclist safety along SCB is a primary concern. The BTP named this the first priority, and the PTP assigned this Tier 1 priority.

Status of the project: The SCB Class IV Bikeway, Phase 2B is 95% complete with the design phase. Prior to commencing with bidding and construction, the City intends to search for external funding sources and will return to City Council for funding approval for the project.

TABLE 2
Project name Project Description Year
Initiated
Approved
Funding
Project
Total
Unencumbered
funds
Stevens
Creek Blvd CL
IV Bikeway
Phase 2B
Construction of the
separated bikeway along
Stevens Creek Blvd from
De Anza Blvd to US-85.

This includes signal
upgrades at Bandley Drive.
*The design funding was in
conjunction with Phase 2A.

FY20-21 $0 $0 $0

*Expenses to
date: $0

*Expenses to date for design are included in the Phase 2A design total.

Option 1 – Defund the Project
Defunding the project would result in $0 of City funds to be reallocated. The City has paid approximately $310,000 in design phase expenses for Phase 2A and 2B.

Option 2 – Continue with the Project
It is likely that external funding will be available for construction of Phase 2B to offset the use of City funds. However, no external funding has been acquired for Phase 2B to date. The estimated construction cost of this project is $1,800,000.

35 CC 05-15-2025
35 of 655

3. Stevens Creek Boulevard Class IV Bikeway - Bandley Dr. Signal

Project Description: Upgrades to the traffic signal at Bandley Dr. and SCB will include new conduit, wiring, traffic signal boxes, two new signal heads, and a split phase signal operation for vehicles entering onto SCB, to enhance safety and overall signal operation efficiency.

SCB Phase 2A and 2B were jointly funded in design. SCB Bikeway Phase 2B and Bandley Drive Signal Upgrade projects are combined in design and construction to increase efficiency, however funding is noted separately because the Bandley intersection project is partially funded with developer in-lieu fees.

Status of the project: For efficiency, the design and construction of this project is combined with the SCB Class IV Bikeway, Phase 2B project, which is 95% complete with the design phase.

TABLE 3A
Project name Project Description Year
Initiated
Approved
Funding
Project
Total
Unencumbered
Funds
Bandley
Intersection
Signal upgrades at
Bandley Drive. Scope of
work will be included in
SCB Phase 2B for
efficiency. (Externally
Funded, in part)
FY18-
19 $150,090 $142,208

Expenses to
date:
$7,882

In-Lieu funds FY18-
19 $25,658
City funding FY18-
19 $124,432

Option 1 – Defund the Project
Defunding the project would result in $116,550 of City funds to be reallocated. The developer in-lieu funds would be addressed by the City Attorney at a future date.

Option 2 – Continue with the Project
It is likely that external funding will be available for construction of Phase 2B to offset the use of City funds.

TABLE 3B – FISCAL IMPACT OF DEFUNDING
Options Approved
City Funding
*Expenses/
Encumbrances
Grant
Funding
Applied
Funding
Return
Defund $124,432 ($7,882) $116,550
Proceed $124,432 ($150,090) $25,658 $0
Difference $116,550
36 CC 05-15-2025
36 of 655

*Expenses-to-date are noted in the context of Defunding. Encumbrances (contracts) are considered if proceeding with the project.

4. Bollinger Road Corridor Study

Project Description: The City intends to undertake a multifaceted approach to further inform the Bollinger Road Corridor Safety Study (BRCSS) recommendations. Traffic modeling will perform microsimulation analyses of proposed alternatives. This will evaluate potential impacts, such as congestion or traffic diversion, and identify necessary mitigation measures. The City will engage a consultant to design and execute a robust stakeholder engagement process, including interviews, surveys, and workshops, culminating in a report to combines the findings and communicates outcomes. Lastly, a traffic enforcement initiative, guided by the Safe System Approach, will fund two traffic enforcement agents for a one-year pilot, enhancing safety as the project develops.

This project is a health and safety priority, has been requested by the Bicycle Pedestrian Commission in response to a fatality that occurred along this stretch of Bollinger Road, is a subsequent phase of a previous project following the 2020 initial study. Enhancing safety along the Bollinger Road Corridor is a priority in both the BTP and PTP. Secured grant funding for the analysis made it fiscally responsible to begin the study at this time.

Status of the project: The City is coordinating with the grant agency to finalize and execute the grant agreement. Once the grant agreement is finalized, the City intends to procure a consultant team to perform the analysis and outreach efforts. The pre- design/analysis work on the Bollinger Road Corridor will be a two+ year process that is anticipated to be completed in FY 2028-2029. Funding for the final design and construction would be pursued after the analysis is complete. It is anticipated that the design and construction would be initiated in FY 2030-2031.

The grant funding secured is from a federal grant program, which currently leaves some uncertainty as to whether the City will be able to finalize the grant agreement, and thus the City has not initiated any efforts that result in further expenditure. Federal Highway Administration (FHWA) has not yet signed the grant agreement and they are evaluating all pending agreements.

TABLE 4A
Project name Project Description Year
Initiated
Approved
Funding
Project
Total
Unencumbered
funds
Bollinger
Road Corridor
Study
Traffic analysis,
topographic and utilities
survey, and preliminary
engineering of Bollinger
FY24-
25 $106,400 $532,000 $532,000
37 CC 05-15-2025
37 of 655

Road. (Externally Funded,
in part)
Safe Streets 4 All (SS4A)
grant
FY24-
25 $425,600

Option 1 – Defund the Project
Defunding the project would result in $106,400 of City funds being reallocated, and the grant funding would be lost.

Option 2 – Continue with the Project
It is likely that external funding will be available for the design and construction of the project once the traffic analysis and community input from this study are compiled into a report.

TABLE 4B – FISCAL IMPACT OF DEFUNDING
Options Approved
City Funding
*Expenses/
Encumbrances
Grant
Funding
Applied
Funding
Return
Defund $106,400 $0 $106,400
Proceed $106,400 ($532,000) $425,600 $0
Difference $106,400
*Expenses-to-date are noted in the context of Defunding. Encumbrances (contracts) are considered if proceeding with the project.

5. Photovoltaic Systems Design and Installation

Project Description: In 2023 PG&E announced a solar buy-back rate decrease, designated as Net-Energy Metering 3 (NEM 3), for electricity generated by photovoltaic (PV) systems. However, a window was provided to allow grandfathering buy-back rates, at the more economically-attractive NEM 2.0 rates, if interconnection applications were successfully submitted and corresponding systems are operational by 2026. NEM

2.0 Interconnection Applications were successfully submitted to PG&E for five Cupertino facilities: Blackberry Farm, Civic Center, Library, Quinlan Community Center & Senior Center, and Sports Center. This project aims to design and build PV systems at three of these locations. Council reviewed and approved the conceptual designs for Community Hall, Quinlan Community Center, and Sports Center in December 2024, before awarding the Design Build contract in February 2025.

38 CC 05-15-2025
38 of 655

The City must connect the proposed photovoltaic systems to the grid by 4/15/2026 to take advantage of the NEM 2.0 applications, which provides 75 – 80% greater compensation than NEM 3 rates for electricity that is fed back into the electrical system.

The savings in utility costs are projected to be approximately $290K annually, and $13.4 million over a 30-year lifespan. Installation of the PV systems is projected to provide substantial fiscal savings on utility costs. The use of cleaner energy sources is also a CAP goal.

Status of the project: The PV project contracts for the design-build entity and construction management were approved in February and the design phase is underway.

TABLE 5A
Project name Project Description Year
Initiated
Approved
Funding
Project
Total
Remaining
Funds
Photovoltaics
Systems (PV)
Design &
Installation
This project will design-build
PV systems at three
locations: Quinlan
Community Center,
Cupertino Sports Center, and
Community Hall.

Estimated Completion: 2026
FY24-25 $6,300,000 $6,300,000 $6,296,600

Fiscal Summary (information from the February 4 staff report to award the DB contract):

The PV Project budget (420-99-274) has a total City-funded approved project budget of $6,300,000. The total expenditures after completion of the project are estimated to be $4,624,491, with remaining funds of $1,675,509.

TABLE 5B - Fiscal Summary Table
Current Funding Status (Budget) Amount
City Approved Funds - FY 25 $6,300,000

Projected Funding Impact (Expenses) Amount
Expenses to date (Conceptual Design) ($59,610)
Construction Contract ($3,939,881 base contract and
$400,000 contingency)
($4,339,881)
Construction Management ($225,000)
Subtotal: ($4,624,491)

Summary Amount
Current Project Budget (420-99-036) $6,300,000
Projected Funding Impact ($4,624,491)
Remaining Funds: $1,675,509

39 CC 05-15-2025
39 of 655

The City will apply for the Inflation Reduction Act (IRA) Direct Pay credit at the end of the project. If the application is successful, the rebate will cover 30% of the cost of the PV system installation. The project will also pursue the “Build America Buy America Act” (BABAA) domestic content bonus credit program for energy projects, which could return an additional 10% to the City. The BABAA bonus credit requires that the project use a specified percentage of domestically produced steel, iron, and manufactured products. The revenue from either of these rebate programs, as much as $1.4 million, is not guaranteed.

The IRA credits are potentially at risk. At this time, Presidential Administration has paused all funding disbursements for projects funded by the Inflation Reduction Act.

Any disbursements are currently required to receive specific approval from the federal government.

Option 1 – Defund the Project
Defunding the project would result in approximately $6.2 million of City funds to be reallocated. The design-build contract with Syserco ($3.9 million) has been executed and some funds would be reimbursed to Syserco for time spent. The City would not see the $13.4 million in savings over the next 30 years on utility costs – those savings would be lost if the project is defunded.

Option 2 – Continue with the Project
This project is anticipated to save $13.4 million in the next 30 years in utility costs. Refer to Attachment C for more detail. With the federal rebates projected, 9 years is the payback period for the project costs. Without the federal rebates, the payback period is 13 years.

TABLE 5C – FISCAL IMPACT OF DEFUNDING
Options Approved
City Funding
*Expenses/
Encumbrances Rebate Funding
Return
Defund $6,300,000 ($59,610) $6,240,390
Proceed $6,300,000 ($4,624,491) $1,679,068 $3,354,577 Difference $2,885,813
*Expenses-to-date are noted in the context of Defunding. Encumbrances (contracts) are considered if proceeding with the project.

6. Silicon Valley Hopper EV Parking

Project Description: Provide electric vehicle charging stations (EVCS) for Silicon Valley Hopper EV fleet [formerly Via shuttle]. The Silicon Valley Hopper fleet requires dedicated EVCS for operational efficiency.

40 CC 05-15-2025
40 of 655

Initiated as a pilot program by City Council in 2019 as Via-Cupertino, the micro-transit rideshare program rebranded in 2023 as Silicon Valley (SV) Hopper when it partnered with the City of Santa Clara.

The project budget includes design and construction. The budget is not adequate for additional electrical service upgrades, if required. A search for additional external funding is underway. Presently the EV fleet is being parked and charged at De Anza College. The city of Santa Clara is exploring the option of providing overnight charging at existing EVCS in Santa Clara. They have been working with their utility provider for over a year, but the outcome is still uncertain.

Status of the project: The City is currently seeking professional design services to prepare plans for construction.

TABLE 6A
Project name Project Description Year
Initiated
Approved
Funding
Project
Total
Unencumbered
funds
Silicon Valley
Hopper EV
parking
Provide electric vehicle
charging stations (EVCS)
for SV Hopper (formerly
VIA) fleet.

FY22-23

$350,000

$350,000 *$321,000
*$29,000 has been spent on preliminary engineering and design information.

Option 1 – Defund the Project
Defunding the project would result in $321,000 of City funds to be reallocated.

Defunding the project means that the City would be reliant on utilizing non-City owned facilities to support the fleet of electric shuttle vehicles.

Option 2 – Continue with the Project
It is likely that external funding will be available for the design and construction of this project.

TABLE 6B – FISCAL IMPACT OF DEFUNDING
Options Approved
City Funding
*Expenses/
Encumbrances
External
Funding
Funding
Return
Defund $350,000 ($29,000) $321,000
Proceed $350,000 ($350,000) $0 $0
Difference $321,000
*Expenses-to-date are noted in the context of Defunding. Encumbrances (contracts) are considered if proceeding with the project.

Summary
41 CC 05-15-2025
41 of 655

As part of the Capital Improvement Programs (CIP) review discussion on April 2, the City Council requested the opportunity to review certain CIP projects to consider defunding.

 Stevens Creek Boulevard Class IV Bikeway - Phase 2A, 2B and Bandley Intersection: approximately $2.15 million could be returned to the Capital Reserve. This project was the top priority of the 2016 Bicycle Transportation Plan to enhance safety on Stevens Creek Boulevard. Defunding this project could marginalize the City’s ability to acquire grant funding from VTA in the future.  Bollinger Road Corridor Study: the A conceptual study was published in 2021 and was informed by prior pedestrian/vehicular collisions that resulted in two deaths. The proposed traffic analysis and public outreach is partially (80%) funded through external grants, and the analysis will provide information essential to understanding the potential next steps. Defunding the study will return $100,000 to the Capital Reserve.
 Photovoltaic Systems Design and Installation: Approximately $6.2 million could be returned to the Capital Reserve. The completed project is anticipated to save $13.4 million over the next 30 years. With the federal rebates projected, 9 years is the payback period for the project costs. Without the federal rebates, the payback period is 13 years.
 Silicon Valley Hopper EV Parking: Approximately $321,000 could be returned to the Capital Reserve if this project is defunded. Defunding the project means that our City’s fleet of electric shuttle vehicles are housed at non-City properties when not in use.

Sustainability Impact
No sustainability impact.

Fiscal Impact
Defunding of a CIP project would result in the approximate “Funding Return” total (listed below) being returned to the Capital Reserve.
1) Stevens Creek Boulevard Class IV Bikeway - Phase 2A = $2,040,000 2) Stevens Creek Boulevard Class IV Bikeway - Phase 2B = $0 3) Bandley Dr. Signal Upgrade = $116,550
4) Bollinger Road Corridor Study = $106,400
5) Photovoltaic Systems Design and Installation = $6,240,390 6) Silicon Valley Hopper EV Parking = $321,000

Proceeding with the CIP project would result in the use of the previously appropriated funds, offset by the external funding listed in the tables above (approximately $1.9M to $3.6M).

City Work Program (CWP) Item/Description
None
42 CC 05-15-2025
42 of 655

California Environmental Quality Act
No California Environmental Quality Act impact
_____________________________________
Prepared by: Susan Michael, CIP Manager
Reviewed by: Chad Mosley, Director of Public Works
Approved for Submission by: Tina Kapoor, Acting City Manager

Attachments:

A – FY 25-26 CIP Project Narratives-defunding review
B – FY 25-26 CIP Fiscal Summary Table
C – Photovoltaic Systems project cost analysis February 2025 43 CC 05-15-2025
43 of 655
CIP FY 2024-2025 • 5-year plan ATTACHMENT A

CAPITAL IMPROVEMENT PROGRAMS
F
ISCAL YEAR 2024-2025
and 5-YEAR PLAN

NEW PROJECT NARRATIVES
LEGEND
Health and Safety Improvements
Co
uncil, Commissions and/or Community Priority
High Priorities established through City’s Master Plans or Condition Assessment Reports
Projects that are subsequent phases of existing projects; or projects in the queue that need to be activated
Projects that have secured external funding

CIP FY24-25  5-year plan ATTACHMENT A page 1 Projects that have secured external funding, or which
can result in positive fiscal impacts to the City
CIP FY25-26  5-YEAR PLAN

PROJECT NARRATIVES

ATTACHMENT B
FISCAL YEAR 2025 - 2026

PROJECT NARRATIVES
Attachment B
for Defunding Review

ATTACHMENT A
SIX
May 6, 2025
44 CC 05-15-2025
44 of 655
CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES
Stevens Creek Blvd Class IV Bikeway – Phase 2A
Separated Bikeway & Signal Upgrades
Total City Funding $ 2,350,000
City Funding $ 2,350,000
External Funding $ 807,000 (OBAG)
External Funding $ 693,000 (SB1)
Remaining Funds (Feb 2025) $ 277,829
Funding Source, Approved Plan GF/GF, BTP
Project Category Transportation
Project Type Design and Construction
Location SCB: Wolfe to De Anza
Origin of Request Public Works
Budget Unit 420-99-036, ST 053 and ST 059
Initiated FY20-21
Project Description
Project Justification
Prioritization
Projected Schedule/5-year Plan information
Funding Information
Operating Budget Impacts
Phase 2A includes design and construction of the separated bikeway along Stevens Creek Blvd (SCB) from Wolfe Road to De Anza Blvd. Improvements include traffic signal modifications at Wolfe Road and De Anza Blvd to provide separate bicycle phasing.

The 2016 Bicycle Transportation Plan identifies improvements needed and priorities to enhance and promote safer bicycle transportation in the City. The number one priority of the Plan was to provide a separated Class IV bicycle lane on Stevens Creek Blvd. This project is the second phase to address that priority.

Design and Documentation, and community outreach for Phase 2A (Wolfe Road to De Anza Blvd.) is complete. The construction contract for Phase 2A was awarded in February 2025. Construction will be complete before the end of the calendar year. See Phase 2B project narrative for more information on the subsequent work on this project.It is anticipated that separated bike lanes will require additional maintenance to sweep bike lanes clean of debris. This cost will be in addition to normal street sweeping operations and will be included in the Operating budget.

Improving vehicular, pedestrian and bicyclist safety is a primary concern. The Bike Transportation plan named this the first priority, and the Pedestrian Transportation assigned this Tier 1 priority.

External grant funding has been secured for this project (OBAG and SB1 funding) and this will be used to reduce the City’s costs on Phase 2A. The remainder of the funds allocated by the City for Phase 2 will be used on Phase 2B.

PAGE 2 OF 7
45 CC 05-15-2025
45 of 655
CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES
Stevens Creek Blvd Class IV Bikeway – Phase 2B
Separated Bikeway & Signal Upgrades
Total City Funding* $ TBD
City Funding* $ 0
External Funding $ 0
Remaining Funds (Feb 2025) N.A.

Funding Source, Approved Plan GF/GF, BTP
Project Category Transportation
Project Type Design and Construction
Location SCB: De Anza to Highway 85
Origin of Request Public Works
Budget Unit 420-99-036, ST 053 and ST 059
Initiated FY20-21
Project Description
Project Justification
Prioritization
Projected Schedule/5-year Plan information
Funding Information
Operating Budget Impacts
Phase 2B includes design and construction of the separated bikeway along Stevens Creek Blvd (SCB) from De Anza Blvd. to Highway 85. Upgrades to the traffic signal at Bandley Dr. and Stevens Creek Blvd. will include new conduit, wiring, traffic signal boxes, two new signal heads, and a split phase signal operation for vehicles entering onto Stevens Creek Blvd. *Note: SCB Phase 2A and 2B were jointly funded in design. SCB Bikeway Phase 2B and Bandley Drive Signal Upgrade projects are combined in design and construction to increase efficiency, however funding is noted separately because the Bandley intersection project is funded with DIL fees.

The 2016 Bicycle Transportation Plan identifies improvements needed and priorities to enhance and promote safer bicycle transportation in the City. The number one priority of the Plan was to provide a separated Class IV bicycle lane on Stevens Creek Blvd. This project is the second phase to address that priority.

It is anticipated that separated bike lanes will require additional maintenance to sweep bike lanes clean of debris. This cost will be in addition to normal street sweeping operations and will be included in the Operating budget.

Design and Documentation of Phase 2B and the Bandley project is 95% complete. The project will be permitted, bid, and constructed once Phase 2A is complete.

Improving vehicular, pedestrian and bicyclist safety is a primary concern. The Bike Transportation plan named this the first priority, and the Pedestrian Transportation assigned this Tier 1 priority. *External grant funding has been secured for Phase 2A of this project and this will be used to reduce the City’s costs on Phase 2A. The remainder of the funds allocated by the City for Phase 2 will then be used on Phase 2B. External funding may be available for Phase 2B.

PAGE 3 OF 7
46 CC 05-15-2025
46 of 655
CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES
Bandley Drive Signal Upgrades
Traffic & Signal Upgrades
Total Funding $ 150,090
City Funding $ 124,432
External Funding $ 25,658 (DIL)
Remaining Funds (Feb 2025) $ 142,210
Funding Source, Approved Plan GF & DIL/GF, BTP
Project Category Transportation
Project Type Design and Construction
Location SCB & Bandley Intersection
Origin of Request Public Works
Budget Unit 420-99-070, ST044
Initiated FY18-19
Project Description
Project Justification
Prioritization
Projected Schedule/5-year Plan information
Funding Information
Operating Budget Impacts
Upgrades to the traffic signal at Bandley Dr. and Stevens Creek Blvd. will include new conduit, wiring, traffic signal boxes, two new signal heads, and a split phase signal operation for vehicles entering onto Stevens Creek Blvd. Note:

SCB Bikeway Phase 2B and Bandley Drive Signal Upgrade projects are combined in design and construction to increase efficiency. Funding is noted separately because the Bandley intersection project is funded with DIL fees.

The Bandley Drive Signal Upgrades will significantly enhance pedestrian safety and pedestrian connectivity across Stevens Creek Blvd within the Crossroads district by reducing pedestrian-vehicle conflicts. Vehicle safety will also be increased for vehicles exiting the Crossroads driveway and Bandley Drive.

The signal upgrades will not increase operational costs.

Design and Documentation of Phase 2B and the Bandley project is 95% complete. The project will be permitted, bid, and constructed once Phase 2A is complete.

Improving vehicular, pedestrian and bicyclist safety is a primary concern. This project will significantly enhance pedestrian and vehicular safety.

External grant funding has been secured for Phase 2A. Additional external funding may be available for Phase 2B. The remainder of the City funds allocated for Phase 2 will be applied to Phase 2B once Phase 2A is complete. The scope of work for the Bandley intersection will be included in the Phase 2B scope of work for efficiency.

PAGE 4 OF 7
47 CC 05-15-2025
47 of 655
CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES
Bollinger Road Corridor Study
T
raffic Analysis, Feasibility and Preliminary Design
Total Funding $ 532,000
City Funding $ 106,400
External Funding $ 425,600
5-year Funding Total $ 4,000,000
Remaining Funds (Feb 2025) $ 532,000
Funding Source, Approved Plan GF, BTP & BCSS
Project Category Transportation
Project Type Design and Construction
Location Bollinger Road, De Anza Blvd to
Lawrence Exp.

Origin of Request Public Works, BPC
Budget Unit 270-99-270, ST 067
Initiated FY24-25
Project Description
Project Justification
Prioritization
Projected Schedule/5-year Plan information
Funding Information
Operating Budget Impacts
In December 2020, City staff initiated a safety and operational study of the Bollinger Road from De Anza Boulevard to Lawrence Expressway to identify improvements that will enhance pedestrian, bicycle, motor-vehicle, and transit operations as a safety corridor. This is a collaboration between the City of Cupertino and City of San JosØ.

Further design and analysis work is required. This includes a topographic and utilities survey of Bollinger Road, preliminary engineering, and traffic analysis. The traffic analysis will determine the potential for the road diet (Alternative A from 2020 Feasibility Study) to increase congestion or divert traffic onto residential streets, and any corresponding mitigation measures to limit that impact (Alternative B from 2020 Feasibility Study).

Year 1 work includes preliminary design, feasibility, public outreach, traffic analysis, and topographic surveying. Year 2 will see continuation of Year One activities and initial preliminary engineering. Year 3 will encompass final preliminary engineering and preparation of final plans, specifications, and estimates.

T.B.D.

External grant funding obtained; 20% matching funds required. Improves safety and sustainable means of transportation and builds upon master plan priorities. Initial Traffic Study and preliminary designs can be initiated in this FY by PW.

Funding for analyses, public outreach, and preliminary plans, and estimates. Construction of improvements will require additional funding.

PAGE 5 OF 7
48 CC 05-15-2025
48 of 655
CIP FY25-26 • 5-YEAR PLAN PROJECT NARRATIVES
Photovoltaic Systems Design & Installation
Total Funding $ 6,300,000
City Funding $ 6,300,000
External Funding $ 0
Remaining Funds (Feb 2025) $ 6,296,600
Funding Source, Approved Plan CR, CAP
Project Category Sustainability, Facilities
Project Type Design and Construction
Location Community Hall, Sports
Center, Quinlan
Community Center
Origin of Request Public Works
Initiated FY24-25
Project Description
Project Justification
Prioritization
Projected Schedule/5-year Plan Information
Funding Information
Operating Budget Impacts
In 2023 PG&E announced a rate decrease for electricity generated by photovoltaic (PV) systems (NEM 3) but provided a window to allow grandfathering the more economically-attractive NEM 2.0 rates if interconnection applications were successfully submitted and corresponding systems operational by 2026. NEM 2.0 Interconnection Applications were successfully submitted to PG&E for five Cupertino facilities: Blackberry Farm, Civic Center, Library, Quinlan Community Center & Senior Center, and Sports Center. This project aims to design and build PV systems at three locations. Council reviewed and approved the conceptual designs for Community Hall, Quinlan Community Center and Sports Center in December 2024 before awarding the Design Build contract in February 2025.

The City must connect the proposed photovoltaic systems to the grid by 4/15/2026 in order to take advantage of the NEM 2.0 applications, which provides 75 – 80% greater compensation than NEM 3 rates for electricity that is fed back into the electrical system. The savings in utility costs are projected to be $290K annually, and $13.4M over a 30yr lifespan.Conceptual Design development and cost analysis completed in 2024. Design-Build: March 2025 to April 2026 Installation of the PV systems is projected to save $290K annually in utility costs. While additional maintenance will be required for the PV systems, additional staffing will not be required for ongoing operations and maintenance.

Installation of the PV systems is projected to provide substantial savings on utility costs, going forward. The use of cleaner energy sources is a CAP goal.

The proposed budget will enable design and construction of the systems. Inflation Reduction Act credits projected for this project are approximately $1.4M. Staff will also pursue other grant funding opportunities.

PAGE 6 OF 7
49 CC 05-15-2025
49 of 655
PAGE 7 OF 7
50 CC 05-15-2025
50 of 655
FISCAL YEAR 2025 - 2026 CAPITAL IMPROVEMENT PROGRAMS • 5-YEAR PLAN Funding Types LEGEND Approved Plan(s)
RUC = Restricted Use Category Parks ADA - ADA Transition Plan AP - Apple Funded Donation Streets & Infrastructure BCSS - Bollinger Road Corridor Safety Study BBF - Blackberry Farm Enterprise Fund (560)(RUC) Transportation BCA - Building Condition Assessment DIL - Developer in Lieu Fund (RUC) Facilities CAP - Climate Action Plan DON - Donation New project for FY25-26 CCMP - Civic Center Master Plan GF - General Fund (420/429) (unrestricted) BTP - Bicycle Transportation Plan PD - Park Dedication Fund (280) (RUC) EP - Santa Clara County Expressway Plan RP - Recreation Program Enterprise Fund (580) (RUC) FMP - 2020 Fiber Master Plan SC - Sports Center Enterprise Fund (570) (RUC) GP - General Plan SCCP - Stevens Creek Corridor Park Capital Projects MPP - McClellan Ranch Preserve Master Plan Fund (427) (RUC) PMP - Pedestrian Master Plan
SD - Storm Drain Improvement Fund (210) (RUC) PRSMP - Parks & Recreation System Master Plan TF - Transportation Fund (270) (RUC) PTP - Pedestrian Transportation Plan RRGE - Regnart Road Geotechnical Evaluation
SCC - Stevens Creek Corr. Park Master Plan & Restor.

SDMP - Storm Drain Master Plan
EXISTING & NEW FY25-26 PROJECTS
Description City Funding External Project
Funding
Current Total
Project Budget
Remaining Funds
(3/14/25)
FY 25-26 City
Funding
Funding Type Approved Plan Budget Unit Project No. FY Initiated ADA Improvements (Annually funded)
970,000 0 970,000 191,990 110,000 GF GP/ADA 420-99-007 PVAR 002 FY16 Facilities Condition Assessment (FCA) Implementation 2,006,470 423,420 2,429,890 1,536,282 940,000 GF BCA 420-99-063 BAI 001 FY19 City Hall Annex 3,000,000 0 3,000,000 1,872,539 GF CCMP 420-99-248 CIV 010 FY22 City Hall Improvements 500,000 0 500,000 378,036 GF CCMP 420-99-250 CIV 011 FY22 Library Expansion Project: landscaping & courtyard 8,705,438 1,000,000 9,705,438 1,391,910 GF CCMP 420-99-077 CIV 007 FY20 All Inclusive Play Area & Adult-Assistive Bathroom Facility (Jollyman Park)
2,418,146 2,473,201 4,891,347 4,255,313 GF PRSMP 420-99-051 PVAR 007 FY19 Lawrence-Mitty Park and Trail Plan 6,850,909 0 6,850,909 4,422,565 DIL GP, PRSMP 280-99-009 P LM 001 FY19 Park Amenity Improvements 600,000 0 600,000 417,460 GF PRSMP 420-99-086 PVAR 011 FY21 MRP West Parking Lot Improvements (Habitat monitoring) 1,069,682 0 1,069,682 1,611 420-99-030 MRW 002 FY17 Annual Playground Replacement 1,500,000 0 1,500,000 913,755 GF PRSMP 420-99-085 PVAR 010 FY21 Stevens Creek Bridge Repair 172,000 688,000 860,000 172,000 TF GP 420-99-267 ST 063 FY24 McClellan Road Bridge Reconstruction 0 5,850,000 5,850,000 5,850,000 - Grants GP 420-99-273 ST 066 FY25 City Lighting LED improvements 1,350,000 1,350,000 501,074 GF GP 420-99-258 ST 052 FY22 City Bridge Maintenance Repairs (BPMP) 2,176,105 1,893,195 2,176,105 174,347 TF GP 270-90-960 ST 002 FY15 Street Light Installation - Annual Infill (Annually funded) 430,000 0 430,000 142,241 GF GP 420-99-056 ST 024 FY18 Vai Avenue Outfall 490,000 0 490,000 438,756 CR, SD GP 420-99-275 ST 065 FY25 Outfall Repairs 950,000 0 950,000 N.A. 950,000 CR, SD GP FY26 Subtotal, Page 1 (Existing & New Projects)
33,188,750 12,327,816 43,623,371 22,659,879 2,000,000
FY25-26 CIP Page 1 of 3
ATTACHMENT B 51
CC 05-15-2025
51 of 655
EXISTING & NEW FY25-26 PROJECTS (CON'T.)
Description City Funding External Project
Funding
Current Total
Project Budget
Remaining Funds
(3/14/25)
FY 24-25 City
Funding
Funding Type Approved Plan Budget Unit Project No. FY Initiated Stevens Creek Blvd CL IV Bikeway - Phase 2A & Design
2,350,000 1,500,000 2,350,000 277,829 GF, Grant BTP 420-99-036 ST 053 FY21 Stevens Creek Blvd CL IV Bikeway - Phase 2B (design
included in Phase 2A)
0 0 0 0 GF, DIL BTP 420-99-070 ST 044 FY19
Stevens Creek Blvd CL IV Bikeway - Bandley Dr. Signal 124,432 25,658 150,090 142,210 GF, DIL BTP 420-99-070 ST 044 FY19 Bollinger Road Corridor Study 106,400 425,600 532,000 532,000 CR, Grant BCSS 270-99-270 ST 067 FY25 Roadway Safety Improvements - High Friction Pavement &
Speed Feedback Signage (HSIP)
356,180 3,205,620 3,561,800 3,500,800 CR/ Grant GP 270-99-271 ST 068 FY25 Tamien Innu - East Segment 0 2,536,000 2,536,000 1,411,377 AP/Grant BTP, PTP 420-99-036 ST 050, ST 046 FY21 Tamien Innu - Central Segment
0 4,785,000 4,785,000 4,582,979 AP/Grant BTP, PTP 420-99-036 ST 050, ST 046 FY21 Tamien Innu - West Segment
0 600,000 600,000 600,000 AP/Grant BTP, PTP 420-99-036 ST 051 FY21 School Walk Audit Implementation 23,989 1,221,863 1,245,852 939,405 AP/GF GP, PTP 420-99-069 ST 034 FY19 Electric Vehicle Charging Station (EVCS) expansion - Service Center
560,000 560,000 560,000 CR CAP 420-99-272 ST 069 FY25
Photovoltaic Systems Design and Installation 6,300,000 0 6,300,000 6,296,600 CR CAP 420-99-274 FVAR 004 FY25 Silicon Valley Hopper EV Parking 350,000 0 350,000 321,000 GF, TIRCP CAP 100-88-265 ST 062 FY23 Subtotal, Page 2 (Existing & New Projects) 10,171,001 14,299,741 22,970,742 19,164,200 0 Total (Existing & New Projects) 43,359,751 26,627,557 66,594,113 41,824,079 2,000,000 FY25-26 CIP Page 2 of 3 52
CC 05-15-2025
52 of 655

COMPLETED PROJECTS
Description City Funding Revenue Funding
Sources
Total Project
Budget
Remaining Funds
(3/14/25)
Funding Type Approved Plan Budget Unit Project No. FY Initiated Blackberry Farm Pool Improvements 750,000 0 750,000 31,204 GF PRSMP 420-99-073 BBF 004 FY22 Vai Avenue Outfall - Repairs* 490,000 0 490,000 438,756 CR, SD GP 420-99-275 ST 065 FY25 De Anza Boulevard Buffered Bike Lanes
530,533 166,259 530,533 10,194 GF BTP 420-99-262 ST 061 FY23 McClellan Road Separated Bike Corridor, Phase 3 164,410 2,135,000 2,299,410 99,273 AP/GF/ Grant BTP 420-99-036 ST 047 FY20 Totals (Completed Projects) (Vai is not included) 1,444,943 2,301,259 3,579,943 140,671

FIVE-YEAR PLAN
Project
(Years 2-5 show 5% escalation costs in grey text)
FY25-26
Funding
Year 2
FY26-27
Projected Cost
Year 3
FY27-28
Projected Cost
Year 4
FY28-29
Projected Cost
Year 5
FY29-30
Projected Cost
Funding Type Approved Plan Budget Unit Project No. CIP project # ADA Improvements (Annually funded) 110,000 115,000 120,000 125,000 130,000 GF GP/ADA 420-99-007 PVAR 002 2016-03 Citywide Facilities Condition Assessment Implementation (FCA)
940,000 2,300,000 1,000,000 1,000,000 1,000,000 GF BCA 420-99-063 BAI 001 2019-02 Outfalls Repairs 950,000 600,000 600,000 600,000 600,000 CR, SD GP 420-99-273 ST 066 2025-03 BBF Golf Renovation: minimal repairs 1,433,250 1,504,880 1,580,150 1,659,158 BBF PRSMP, SCC totals
2,000,000 3,015,000 1,720,000 3,305,150 1,730,000
FY25-26 CIP Page 3 of 3 53
CC 05-15-2025
53 of 655
PHOTOVOLTAIC PROJECT COST/SAVINGS 17-Oct-24

A B C D E F G H I J K L M
Facility kWh kWh Cost cost per
kWh
(ave.)
PV systems
kWH
generation
PV systems
annual
savings*
PV systems
annual
electrical
bill**
PV systems
lifecycle
savings***
Constrn Cost:

PV only
Constrn
Cost: EVCS /
Misc. Non-
ITC items
only
Constrn. Cost
(PV + EV)
IRA funding
(40% of PV
only)
City Funding Payback
Period
(years)
****
Payback
Period (Years,
No ITC)
formula A/B B - E H + I H * 40% J - K
DBE contract pricing for 3 sites
Quinlan Community Center
(0116367009-116367840) 383,109 $121,336 $0.32 483,143 $163,067 -$41,731 $7,502,535 $1,691,865 $196,795 $1,888,660 $676,746 $1,211,914 6.72 9.77 S
ports Center (0116367009-
116971849) 329,369 $108,143 $0.33 335,228 $96,612 $11,531 $4,518,119 $1,375,175 $201,868 $1,577,043 $550,070 $1,026,973 9.11 12.81 C
ommunity Hall (0116367009-
116367449) 114,600 $39,810 $0.35 71,332 $31,196 $8,614 $1,398,696 $471,816 $2,362 $474,178 $188,726 $285,452 8.11 12.32 $269,289 $290,875 -$21,586 $13,419,350 $3,538,856 $401,025 $3,939,881 $1,415,542 $2,524,339 with 10% contingency $4,339,881
with 'wood' contingency $4,639,881
*Annual savings includes 5% utility escalation over a 1.5 year construction period , Y
ear 1
***Lifecycle Savings (30yrs) includes: 5% utility escalation, 0.5% module degradation, 30 years, N
EM3 Included
**The costs (B) are offset by the kWh savings (E), resulting in lowered electrical bill (F)
****Discounted cashflow methodology includes: 5% utility escalation, 0.5% module degradation, 3 0 years, NEM3 Included

ATTACHMENT C - PHOTOVOLTAIC SYSTEMS DESIGN AND INSTALLATION PROJECT COST ANALYSIS FEBRUARY 2025
PAGE 1 OF 2
Cost Revision for 2 sites: Comm Hall and QCC (15% increase) Quinlan Community Center
(0116367009-116367840) 383,109 $121,336 $0.32 483,143 $163,067 -$41,731 $7,502,535 $1,945,645 $226,314 $2,171,959 $778,258 $1,393,701 7.58 10.94 C
ommunity Hall (0116367009-
116367449) 114,600 $39,810 $0.35 71,332 $31,196 $8,614 $1,398,696 $542,588 $2,716 $545,305 $217,035 $328,269 9.13 13.74 $161,146 $194,263 -$33,117 $8,901,231 $2,488,233 $229,031 $2,717,264 $995,293 $1,721,970 with 10% contingency $2,988,990
Cost Revision for 1 site: Comm Hall (15% increase)
Community Hall (0116367009-
116367449) 114,600 $39,810 $0.35 71,332 $31,196 $8,614 $1,398,696 $542,588 $461,179 $1,003,767 $217,035 $786,732 9.13 13.74 $39,810 $31,196 $8,614 $1,398,696 $542,588 $461,179 $1,003,767 $217,035 $786,732 with 10% contingency $1,104,144
Cost Revision for 2 sites: Comm Hall and CSC (15% increase) Sports Center (0116367009-
116971849) 329,369 $108,143 $0.33 335,228 $96,612 $11,531 $4,518,119 $1,581,451 $232,148 $1,813,599 $632,581 $1,181,019 10.21 14.25 C
ommunity Hall (0116367009-
116367449) 114,600 $39,810 $0.35 71,332 $31,196 $8,614 $1,398,696 $542,588 $2,716 $545,305 $217,035 $328,269 9.13 13.74 $147,953 $127,808 $20,145 $5,916,815 $2,124,040 $234,865 $2,358,904 $849,616 $1,509,288 with 10% contingency $2,594,795
Cost Revision for 2 sites: Comm Hall and CSC (15% increase) Sports Center (0116367009-
116971849) 329,369 $108,143 $0.33 335,228 $96,612 $11,531 $4,518,119 $1,581,451 $232,148 $1,813,599 $632,581 $1,181,019 10.21 14.25 C
ommunity Hall (0116367009-
116367449) 114,600 $39,810 $0.35 71,332 $31,196 $8,614 $1,398,696 $542,588 $2,716 $545,305 $217,035 $328,269 9.13 13.74 $147,953 $127,808 $20,145 $5,916,815 $2,124,040 $234,865 $2,358,904 $849,616 $1,509,288 with 10% contingency $2,594,795
CURRENT PROJECT SCOPE:

REDUCED PROJECT SCOPE OPTIONS:
54 CC 05-15-2025
54 of 655
Costs & Savings: Implement 3 Sites
• Annual Cost Savings: $290,875 projected, with $13.4M 30-year lifecycle savings • Cost of Design and Construction ($4.4M) is less than project budget($6.3M) • Net cost to City after IRA reimbursement: $2.5M projected • Net cost to City without IRA reimbursement: $4.4M projected; $1.5M differential and longer payback period
• Project completion timeline for NEM2.0 compliance is April 2026 (time is of the essence). • Annual Cost Savings: $290,875 projected, with $13.4M 30-year lifecycle savings • Cost of Design and Construction ($4.4M) is less than project budget($6.3M) • Net cost to City after IRA reimbursement: $2.5M projected • Net cost to City without IRA reimbursement: $4.4M projected; $1.5M differential and longer payback period
• Project completion timeline for NEM2.0 compliance is April 2026 (time is of the essence).

Costs & Savings: Fiscal Summary

ATTACHMENT C - PHOTOVOLTAIC SYSTEMS DESIGN AND INSTALLATION PROJECT COST ANALYSIS FEBRUARY 2025
PAGE 2 OF 2
55 CC 05-15-2025
55 of 655
CC 05-06-2025
Item No. 14
Review potential CIP
projects to be
defunded
Written Communications
56 CC 05-15-2025
56 of 655
From: Francois Delepine
To: Chad Mosley; Rachelle Sander; City Council; Pamela Wu; City Clerk Cc: Francois Delepine
Subject: Cupertino Sports Center Parking Is Limited—Cancel EV and Solar Panel Project at CSC. No Hopper fleet parking at CSC.

Date: Thursday, May 1, 2025 1:22:07 AM
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Dear City Clerk,
Please include the below in written communications for the upcoming city council meeting.

Dear Mayor Chao and Council Members,
My family and I have been residents of Cupertino for 30 years.

I am writing to request the cancellation of the solar panel and EV parking project at Cupertino Sports Center (CSC).

The CSC parking lot is already heavily utilized, with members frequently struggling to find parking during peak hours. I have personally had to park beyond the exit gates a few times.

The introduction of a Hopper EV fleet and its drivers' personal vehicles would further strain an already limited resource, creating unnecessary congestion and inconvenience for existing users. It would mean that users would have to park on the WholeFood parking lot or the church parking and have to cross a four lane busy street,

likely jay-walking to save time, adding frustration and accident risks. Note that some tennis players are in their 70s...even in their 80s...

I am sure your role is not easy, but you have something good going with the Cupertino Sports Center, so in your shoes, I would not want to mess it up and look for another solution.

The Sports Center serves a large number of residents and Lifetime Fitness members, depending on the already constrained parking lot.

There is no available space to dedicate parking to a Hopper fleet, and we don't believe that CSC members and guests should have to compete with commercial vehicle storage for parking access and again have to struggle to find parking outside CSC and take risks.

Given these factors, I strongly urge the city to cancel this project at CSC at the earliest opportunity. Additionally, protecting parking access for legitimate users should remain the city’s priority. 57 CC 05-15-2025
57 of 655
Thank you for your attention to this matter. I appreciate the work you do for the city and I hope you welcome this input.

Sincerely,
Francois Delepine, retired CFO.
--
Francois Delepine
58 CC 05-15-2025
58 of 655

CITY OF CUPERTINO
Agenda Item
25-13714 Agenda Date: 5/15/2025
Agenda #: 4.

Subject: Initial Study Session on Fiscal Year (FY) 2025-26 Proposed Budget and FY 2025-26 Capital Improvement Programs
Initial Study Session on Fiscal Year (FY) 2025-26 Proposed Budget and FY 2025-26 Capital Improvement Programs
CITY OF CUPERTINO Printed on 5/9/2025Page 1 of 1
powered by Legistar™
59 CC 05-15-2025
59 of 655
1 7
8 10
11 14
15 16
18 19
21 23
25 39
41 43
45 47
49 52
54 56
57 58
60 66
67 68
69 70
72 78
79 Table of Contents
Table of Contents
Introduction
City Organizational Chart
Our Mission
City Strategic Vision and Council Goals
Directory of City Officials
Commissions and Committees
GFOA Distinguished Budget Presentation Award
CSMFO Operating Budget Excellence Award
Budget Message
Budget Message
Budget Overview
Budget Overview
Budget Guide
Elements of the Budget Document
Community Profile
History
Community Economic Profile
Community Statistics
Financial Policies
Financial Policies
All Funds Financial Schedules
Financial Overview by Fund
Flow of Funds Chart (Sankey)
All Funds Summary
All Funds Revenues
All Funds Expenditures
All Funds Expenditures by Department
All Funds Fund Balance
General Fund Financial Schedules
General Fund Contribution Schedule
General Fund Summary
General Fund Revenues
FY 2025-26 Proposed Budget Table of Contents 1
60 CC 05-15-2025
60 of 655
91 93
94 96
112
114
116
118
125
127
130
132
134
136
138
140
142
144
146
148
150
152
154
157
159
170
172
174
176
178
179
181
183
185
187
189
General Fund Expenditures
General Fund Transfers
General Fund Fund Balance
General Fund Forecast
Gann Appropriations Limit
Legal Debt Margin
Council and Commissions
Department Overview
City Council
Community Funding
Historical Society
Sister Cities
Technology, Information & Communications Commission
Library Commission
Arts and Culture Commission
Public Safety Commission
Bicycle and Pedestrian Commission
Parks and Recreation Commission
Teen Commission
Planning Commission
Housing Commission
Sustainability Commission
Audit Committee
Administration
Department Overview
City Manager
Sustainability
Office of Communications
Multimedia
Public Access Support
Community Outreach and Neighborhood Watch
Office of Emergency Management
Economic Development
City Clerk
Duplicating and Mail Services
Elections
FY 2025-26 Proposed Budget Table of Contents 2
61 CC 05-15-2025
61 of 655
191
193
195
197
203
205
207
209
221
223
225
228
231
235
237
245
247
249
251
253
255
257
259
261
263
265
268
270
280
282
283
285
287
289
291
293
City Manager Contingency
City Attorney
Law Enforcement
Department Overview
Law Enforcement
Interoperability Project
Innovation and Technology
Department Overview
Innovation & Technology Administration
Video
Applications
Infrastructure
GIS
Administrative Services
Department Overview
Administrative Services Administration
Accounting
Business Licenses
Purchasing
Budget
Human Resources
Retiree Benefits
Insurance Administration
Workers Compensation Insurance
Long Term Disability
Compensated Absences
Parks and Recreation
Department Overview
Recreation Administration
Library Services
Administration
Cultural Events
Facilities
Administration
Youth Teen Recreation
Senior Center
FY 2025-26 Proposed Budget Table of Contents 3
62 CC 05-15-2025
62 of 655
295
297
299
301
302
304
306
308
310
312
314
325
327
329
331
333
335
337
339
341
343
345
347
349
351
353
356
358
376
378
380
382
385
386
387
389
Teen Programs
Events
Park Facilities
Administration
Blackberry Farm Golf Course
Outdoor Recreation
Sports Center Operations
Community Outreach and Neighborhood Watch
Office of Emergency Management
Community Development
Department Overview
Community Development Administration
Current Planning
Mid and Long Term Planning
Economic Development
CDBG General Admin
CDBG Capital/Housing Projects
CDBG Public Service Grants
BMR Affordable Housing Fund
Human Service Grants
General Building
Building Plan Review
Building Code Enforcement
Muni Code Enforcement
Code Enforcement
Building Abatement
Public Works
Department Overview
Public Works Administration
Sustainability
Resource Recovery
Non-Point Source
Storm Drain Fee
General Fund Subsidy
Storm Drain Maintenance
Plan Review
FY 2025-26 Proposed Budget Table of Contents 4
63 CC 05-15-2025
63 of 655
391
393
395
397
399
401
403
405
407
409
411
413
415
417
419
421
423
425
427
429
431
433
435
437
439
441
443
445
447
449
451
453
455
457
459
461
CIP Administration
Service Center Administration
Golf Grounds Maintenance
McClellan Ranch Park
Memorial Park
BBF Ground Maintenance
School Site Maintenance
Neighborhood Parks
Sport Fields Jollyman, Creekside
Civic Center Maintenance
Sidewalk Curb and Gutter
Street Pavement Maintenance
Street Sign Marking
Street Lighting
Equipment Maintenance
Environmental Materials
Trail Maintenance
Overpasses and Medians
Street Tree Maintenance
Sheriff Work Program
BBF Golf Maintenance
City Hall Maintenance
Library Maintenance
Service Center Maintenance
Quinlan Community Center Maintenance
Senior Center Maintenance
McClellan Ranch Maintenance
Monta Vista Community Center Maintenance
Wilson Park Maintenance
Portal Park Maintenance
Sports Center Maintenance
Creekside Park Maintenance
Community Hall Maintenance
Teen Center Maintenance
Park Bathrooms Maintenance
Blackberry Farm Maintenance
FY 2025-26 Proposed Budget Table of Contents 5
64 CC 05-15-2025
64 of 655
463
465
467
469
471
473
475
477
479
483
485
486
487
488
490
492
494
496
498
499
Franco Traffic Operations Center
City Hall Annex
Community Shuttle
Traffic Engineering
Traffic Signal Maintenance
Safe Routes 2 School
Fixed Assets Acquisition
Non-Departmental
Department Overview
General Fund Non-Departmental
Tree Fund Non-Departmental
Debt Service Non-Departmental
Capital Reserve Non-Departmental
Facility Lease Debt Service
Appendix
Glossary of Budget Terminology
Commonly Used Acronyms
Revenues, Expenditures, and Fund Balance Table
CIP Schedule
Personnel Schedule
FY 2025-26 Proposed Budget Table of Contents 6
65 CC 05-15-2025
65 of 655
Introduction
FY 2025-26 Proposed Budget Introduction 7
66 CC 05-15-2025
66 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Introduction 8
67 CC 05-15-2025
67 of 655
City Organizational Chart
FY 2025-26 Proposed Budget Introduction 9
68 CC 05-15-2025
68 of 655
Our Mission
The mission of the City of Cupertino is to provide exceptional service, encourage all members of the community to take responsibility for one another, and support the values of education, innovation, and collaboration.

FY 2025-26 Proposed Budget Introduction 10
69 CC 05-15-2025
69 of 655
City Strategic Vision and Council Goals
On March 3, 2025, City Council participated in a Priority SeDing Workshop to set the priorities for the next two Fiscal Years, modified Council Goals, and unanimously adopted a Strategic Vision Framework to guide decision-making and long-term planning for Cupertino.

Council voted to split the existing “Sustainability and Fiscal Strategy” goal into two separate ones – Environmental Sustainability and Fiscal Strategy – resulting in a total of six Council Goals. While these are intended as multi-year goals, City Council reviews them every two years and may reaffirm or revise as needed.

The newly-adopted Strategic Vision Framework features focus areas – Fiscal Resilience, Small Business Revitalization, and Emergency Management – to help guide strategic initiatives and resource allocation to better serve the community.

The City Council goal-seDing and strategic planning process is paramount to provide a framework for the City's priorities, City budget, and the two-year City Work Program . This process ensures that the City's efforts are aligned with the goals set by the City Council and are important to the Cupertino community.

FY 2025-26 Proposed Budget Introduction 11
70 CC 05-15-2025
70 of 655
FY 2025-27 City Work Program
On March 18, 2025, the City Council approved a list of 19 priority items for the FY 2025-2027 City Work Program (CWP). This list includes 13 new items, which would require an additional $2.28 million to complete. The remaining six items are ongoing, which do not require new funding, as they were previously allocated a combined $1.07 million to complete. In total, the entire FY 2025- 2027 CWP would cost a total of $3.35 million to complete over a two year period.

FY 2025-26 Proposed Budget Introduction 12
71 CC 05-15-2025
71 of 655
FY 2025-26 Proposed Budget Introduction 13
72 CC 05-15-2025
72 of 655
Directory of City Officials
City Council

Liang Chao Kitty Moore
Mayor Vice Mayor

J.R. Fruen Sheila Mohan R "Ray" Wang
Council Member Council Member Council Member
Directory of City Officials
Pamela Wu – City Manager
Vacant – Assistant City Manager
Floy Andrews – Contract City Attorney
Kristina Alfaro – Director of Administrative Services
Ben Fu – Director of Community Development
Chad Mosley – Director of Public Works
Rachelle Sander – Director of Parks and Recreation
Teri Gerhardt – Chief Technology Officer
FY 2025-26 Proposed Budget Introduction 14
73 CC 05-15-2025
73 of 655
Commissions and Committees

ARTS AND CULTURE COMMISSION
Archana Panda
Susan Chen
David Wang
Kiran Varshneya Rohra
Gurmeet Lamba

AUDIT COMMITTEE
Kitty Moore
Eno Schmidt
Hanyan Wu
Sheila Mohan

BICYCLE PEDESTRIAN COMMISSION
Hervé Marcy
Gerhard Eschelbeck
Joel Wolf
Munisekaran Madhipatla
Ilango Ganga

ECONOMIC DEVELOPMENT

COMMITTEE
Vacant

HOUSING COMMISSION
Usha Narayan
Connie Cunningham
Elida" Lida" Xhindi
Ryan Golze
Yuyi He

LIBRARY COMMISSION
Chandra Sakthivel
Janki Chokshi
Liyan Zhao
Minna Xu
Qin Pan

PARKS AND RECREATION

COMMISSION
Carol Stanek
Claudio Bono
Gopal Kumarappan
Sheela Sreekanth
Seema Swamy

PLANNING COMMISSION
Santosh Rao
David Fung
Seema Lindskog
Steven Scharf
Tracy Kosolcharoen

PUBLIC SAFETY COMMISSION
Nirmalendu Das
Ravi Kiran Singh Sapaharam
Sashikala Begur
Sidarth Rajaram

SUSTAINABILITY COMMISSION
Alexander Fung
Conny Yang
Jack Carter
Susan Hansen
Sonali Padgaonkar

TEEN COMMISSION
Anika Mukherjee
Anushree Misra
Brianna Su
Chelsea Lau
Harly Liu
Peter Chen
Rohin Garg
Shivika Biswari

TECHNOLOGY, INFORMATION &

COMMUNICATIONS COMMISSION
Balaram Donthi
Emma Shearin
Mukesh Garg
Prabir Mohanty
Sudeep Kumar
FY 2025-26 Proposed Budget Introduction 15
74 CC 05-15-2025
74 of 655
GFOA Distinguished Budget Presentation Award
FY 2025-26 Proposed Budget Introduction 16
75 CC 05-15-2025
75 of 655
FY 2025-26 Proposed Budget Introduction 17
76 CC 05-15-2025
76 of 655
CSMFO Operating Budget Excellence Award
FY 2025-26 Proposed Budget Introduction 18
77 CC 05-15-2025
77 of 655
Budget Message
FY 2025-26 Proposed Budget Budget Message 19
78 CC 05-15-2025
78 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Budget Message 20
79 CC 05-15-2025
79 of 655
Budget Message
May 1, 2025

To our valued Cupertino community, Honorable Mayor Chao, City Council Members, and dedicated staff, As I commiDed to you during the time of our financial challenges "In the face of these challenges, I firmly believe that the best for Cupertino is yet to come, and that the commitment of the City’s residents, City Council, and employees will create a new and different Cupertino.“
Today, that vision is beginning to take shape. I am pleased to present a balanced budget for the current fiscal year, achieved through several years of thoughtful planning. In addition, I’m proud to share a 10-year financial forecast that reflects the City’s ongoing fiscal discipline, projecting only a modest deficit in the final two years.

This year marks the start of a new chapter for our City—one built on collaboration, perseverance, and a shared commitment to progress. Earlier this year Council adopted a Strategic Vision Framework to guide decision-making and long-term planning for the City. The Framework outlines six goals and key focus areas to ensure that the priorities and the budget are strategically aligned to best serve the community. Before we talk about the future I want to recognize some notable accomplishments from this past fiscal year:

Adopted a new Strategic Vision Framework
Enhanced public safety by adopting a policy and purchasing Automated License Plate Reader cameras (ALPR) Earned prestigious budget awards from both the GFOA and CSMFO, and completed the Annual Comprehensive Financial Report ahead of schedule with a clean audit opinion
Certified the Housing Element
Advanced equity through a draft Anti-Displacement Policy Launch of the redesigned City website with enhanced integration and user functionality.

Significantly increased educational outreach by doubling 3rd Grade Creek Tours and revamped the Preschool Program for added flexibility.

Teen engagement grew with new volunteer opportunities and the successful Teen Resource Fair Adoption of the Vision Zero Action Plan and reduction of speed limits to improve bike and pedestrian safety.

Major infrastructure projects like McClellan Road Separated Bikeways Phase 3 and De Anza Boulevard Buffered Bike Lanes were completed
A full list of accomplishments is included in each department section.

This outlook demonstrates our commitment to the Strategic Vision and the effectiveness of our long-term financial strategies. We emerge as a nimble and flexible organization, having reduced the budget by almost $24 million dollars over the last two years, including a reduction of 15 vacant full-time positions. We have strong reserves, retaining the dollars we set aside for a potential CDTFA payback, as a result of the audit of one of our top sales taxpayers. Additionally, the unassigned fund balance has grown over the last two years through prudent spending and strategic decision-making. We anticipate ending fiscal year 2024-25 with $157 million in fund balance in the General Fund, reflecting our commitment to maintaining an adaptable and responsive city.

With a strong operational foundation in place, we now turn our focus to the future—identifying opportunities to restore services, safeguard our current position, and invest strategically to ensure the City’s long-term financial resilience.

City staff have developed a Strategic Budgeting Framework: Restore, Protect, and Invest (RPI) Strategic Budgeting Framework: Restore, Protect, Invest Purpose: A fiscally responsible approach to rebuilding core services, enhancing safety, and making targeted investments with high return on public value.
1 Restore
Objective: Bring back services where need is greatest.

Actions: Use data (service usage, social indicators) to guide restoration.

ROI: Supports community resilience, and public trust.

Example: Restoring funding for Shakespeare in the Park, Community Funding and funding for internal audit contract.

FY 2025-26 Proposed Budget Budget Message 21
80 CC 05-15-2025
80 of 655

2. Protect - Fix It First
Objective: Maintain and enhance existing infrastructure before expanding.

Actions: Prioritize repairs, safety retrofits, and preventive maintenance.

ROI: Avoid costly breakdowns and extend asset life.

Example: Various needed maintenance repairs and equipment replacement throughout the City.

3. Invest - Strategic Adds
Objective: Invest in programs that offer a strong fiscal or social return.

Actions: Prioritize programs with demonstrated outcomes or indirect revenue impact.

ROI: Prevents future costs, ensures proper positions are in place to move the organization forward or drives revenue growth.

Example: Strategic Plan, position adds and reclassification to align with work needed to be performed, and investment in staff training.

With this budgeting framework in mind, the Fiscal Year 2025-26 Proposed Budget is recommended at $134,997,435 across all funds with estimated revenues of $134,154,373 and the use of one-time funds of $843,062. Focusing on the General Fund, the City’s largest tax-supported fund, a proposed budget of $98,120,775, with estimated revenues of $97,229,134 resulting in a use of fund balance $891,641.

Included in this Proposed Budget are a total of $8.26 million in budget requests, with $2.28 million in City Work Program request, $2 million in CIP and $3.98 million in department request for funding. The department requests are listed by RPI category.

In closing, I want to express my heartfelt gratitude to our community, City Council, and the dedicated staff of Cupertino.

Addressing a significant budget deficit in such a short time was no small task—and naturally, it brought uncertainty. But through collaboration, determination, and a shared commitment to our city's future, we’ve emerged focused and beDer prepared to meet future challenges
Thank you for your support and tireless efforts,
Pamela Wu
City Manager
FY 2025-26 Proposed Budget Budget Message 22
81 CC 05-15-2025
81 of 655
Budget Overview
FY 2025-26 Proposed Budget Budget Overview 23
82 CC 05-15-2025
82 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Budget Overview 24
83 CC 05-15-2025
83 of 655
Budget Overview
The Adopted Budget for the upcoming fiscal year highlights a decrease in both expenditures and revenues compared to the previous year's Adopted Budget. Total expenditures are expected to be $136.0 million, a $10.6 million, or 7.3%, decrease from the previous year Adopted Budget. Similarly, total revenues are anticipated to be $135.2 million, a $4.2 million or 3.0%, decrease from last year's Adopted Budget.

FY 2025-26 General Fund expenditures, which supports the majority of City operations, are expected to be $99.1 million, an increase of $9.1 million or 10.0%, from the previous year's Adopted Budget. General Fund revenues are anticipated to be $97.2 million, which is a $7.4 million or 8.3%, increase from the previous year's Adopted Budget, resulting in a use of fund balance of $1.9 million.

The
budget is short of balancing and staff recommends using unassigned fund balance to fill the funding gap this year. The General Fund's ending fund balance is projected to decrease to $156.7 million from the FY 2024-25 Amended Budget (Year End projected).

As shown in the chart below, the largest fund is the General Fund at 73%.

FY 2025-26 Proposed Budget Budget Overview 25
84 CC 05-15-2025
84 of 655
The graph below summarizes the changes in the City’s General Fund over the last five years:

The FY 2025-26 Proposed Budget funds a total of 210 positions, representing an increase of three positions from the FY 2024-25 Amended Budget.

FY 2025-26 Proposed Budget Budget Overview 26
85 CC 05-15-2025
85 of 655
Budget Roadmap
This is the second year the city has utilized the budget roadmap graphic to inform the Council and public of a various touch points and components of the budget that are completed prior to the Proposed Budget Study Session and Final Budget Adoption. This year, included many stops along our budget roadmap to budget adoption as illustrated in the graphic below:

Changes to the Budget and Policies
Budget Format and Performance Measures Report and Implementation Action Plan 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 was 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 draV Budget Format Implementation Action Plan (IAP) was presented to the City Council in March 2025. This plan included 32 recommendations that were prioritized 1-3, with 1 being the highest priority. One additional recommendation was added by City Council for a total of 33. For further details on this IAP , please see City Council staff report dated March 4, 2025.

The updated IAP will be before City Council for approval on May 6, 2025.

The FY 2025-26 budget document accomplished 15 of the 33 recommendations which also includes a request for funding to assist in completing the Strategic Plan. It is also expected the Capital Improvement Plan will print with the budget this year, this would bring total recommendations accomplished between the two documents to 17 recommendations implemented or 50% implementation rate for the first year of the IAP.

Special Projects Policy
As part of the Implementation Action Plan outlined above, the creation of a Special Projects Policy was identified as a top priority.

Accordingly, City Council adopted the Special Projects Policy in March 2025 and is included in the financial policies on the City's website. This accomplishment is included in the total above.

Revised Fees
Matrix Consulting Group recently conducted a comprehensive fee study that was presented to City Council in February 2024. City Council will consider the FY 2025-26 fee schedule in May 2025 with the newly adopted fees going into effect 60 days aVer adoption in mid-July 2025. Increased fee revenue has not been included in this budget.

Investment Policy
The City Council annually updates and adopts a City Investment Policy that is in compliance with State statutes on allowable investments. By policy, the Audit CommiDee reviews the policy and acts as an oversight commiDee on investments. The policy directs that an external auditor performs agreed-upon procedures to review City compliance with the policy. The Audit CommiDee reviewed and accepted the current Investment Policy on April 28, 2025. The City Council will consider the City's Investment Policy in May 2025.

GANN Appropriations Limit
FY 2025-26 Proposed Budget Budget Overview 27
86 CC 05-15-2025
86 of 655
In 1979, California voters approved Proposition 4, the Gann Initiative, and added Article XIIIB to the California State Constitution.

Article XIIIB mandates a limit on the amount of proceeds of taxes that state and local governments can receive and appropriate (authorize to spend) each year. The purpose of this law is to limit government spending by puDing a cap on the total proceeds of taxes that may be appropriated each year. Proposition 111 and Senate Bill 88, approved by California voters on June of 1990 offered cities more flexibility in choosing inflation and population factors to calculate the limit.

Data to complete the FY 2025-26 GANN is not yet available from the State of California, Department of Finance. This will be updated as part of the final budget.

Citywide Conference and Training Budget Add-backs
As part of a budget reduction strategy, citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference.

Contingencies
Contingency dollars have been calculated from department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets. The City Manager Contingency is the only remaining budget with contingencies as an expense category.

Reorganizations
The City Manager's Office underwent a reorganization in late FY 2024-25, transferring Economic Development to the Community Development Department and Office of Emergency Management to Parks and Recreation. Both program budgets had previously been housed in their current departments.

Budget by Fund
General Fund
The General Fund is the primary source of funding for critical services in the community, including law enforcement, public works, community development, park maintenance, code enforcement, and administrative support services. These services are financed mainly by local taxes such as sales tax, property tax, and transient occupancy tax, as well as other discretionary sources.

The General Fund is responsible for financing services that do not have dedicated funding sources, ensuring that essential public services are available to the community.

General Fund revenues for the upcoming fiscal year are projected to be $97.2 million, which is a $7.4 million or 8.3%, increase from the previous year's Adopted Budget. This is primarily due to a projected increase in property tax revenues, an increase in use of money and property related to the new water lease agreement, and grant revenues related to the City's community shuDle program.

General Fund expenditures for the next fiscal year are $99.1 million, an increase of $9.1 million or 10.0%, from the previous year's Adopted Budget. This is a result of budget requests totaling $2.4 million, including $1.4 million in one-time costs. The rise in Contract Services was mainly driven by higher costs associated with the City's general service agreement for law enforcement and the community shuttle program, as well as increased transfers to support enterprise fund operations.

Although General Fund expenditures are increasing in FY 2025-26, the City will continue to demonstrate proactive fiscal stewardship while Fiscal Accountability measures focus on aligning budgets with actual costs and streamlining expenses. These strategies blend cost reduction with service adjustment, reflecting an effort to manage financial constraints, optimize resource allocation, and consider potential impacts on community services.

The following chart shows four years of total revenue, expenditures, and changes to fund balance for the General Fund:

FY 2025-26 Proposed Budget Budget Overview 28
87 CC 05-15-2025
87 of 655
In FY 2025-26, the General Fund's unassigned fund balance is projected to be $39.2 million, an increase of $0.1 million, or 0.3%, from the FY 2024-25 Amended Budget (Year End Projected). Unassigned fund balance represents fund balance that is available for use and is not assigned, restricted, or commiDed. Total fund balance is estimated to be $156.7 million, a decrease of $0.6 million, or

0.4%, from the FY 2024-25 Amended Budget (Year End Projected) . The slight decrease in total fund balance is due to one-time projects included in this year's budget. With the budget just short of balancing, staff recommends using unassigned fund balance to fill the small gap in funding this year.

As shown in the graph below, the majority of General Fund resources are used to support Public Works (31%), Law Enforcement (20%), Community Development (13%), Non-Departmental (11%), Administrative Services (8%), Parks and Recreation (7%), and Administration (5%). Non-Departmental expenditures are transfers to other funds.

FY 2025-26 Proposed Budget Budget Overview 29
88 CC 05-15-2025
88 of 655
Special Revenue Funds
Special Revenue Funds are established to account for the proceeds of specific revenue sources that are legally restricted for expenditures for particular purposes. For example, gas tax revenues or development impact fees. The largest Special Revenue Fund is allocated to streets, roads, and transportation, while other funds are designated for storm drain management, affordable housing programs, and park development.

For the upcoming fiscal year, the Proposed Budget for Special Revenue Funds is $10.8 million, which represents a decrease of $3.1 million compared to the FY 2024-25 Adopted Budget. Capital Outlays are lower due to lower Capital Improvement Program (CIP) projects and lower Cost Allocation expenses. Matrix Consulting Group updated the Cost Allocation Plan (CAP) based on a CAP study performed in 2023.

The Special Revenue Funds receive funding from two sources: $12.3 million in restricted department revenue and $2.1 million in transfers, resulting in a total funding of $14.3 million. The Special Revenue Funds are expected to end the year with a fund balance of $40.8 million, reflecting an increase of $9.3 million from last year's Adopted Budget. This increase in fund balance is mainly due to increased Measure B and interest revenues.

Debt Service Funds
The Public Facilities Corporation Debt Service Fund provides for the payment of principal, interest, and associated administrative costs incurred with issuing debt instruments. On September 29, 2020, the City’s 2020A Certificates of Participation (2020 COPs) were successfully sold to refund the City’s 2012 Certificates of Participation for debt service savings. The refunding generated net present value savings of approximately $3.14 million, 11.61% of refunded par, and a True Interest Cost of 0.72%. Savings to the City’s General Fund amounts to approximately $494,000 per year for the next ten years or almost $5 million in total savings. The debt is expected to be fully paid by FY 2029-30.

The Proposed Budget for Debt Service Funds is $2.7 million, relatively unchanged from the FY 2024-25 Amended Budget. The Debt Service Funds are funded by $2.7 million in transfers from the General Fund.

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

FY 2025-26 Proposed Budget Budget Overview 30
89 CC 05-15-2025
89 of 655
The Proposed Budget for Capital Projects Funds is $4.2 million, a decrease of $17.8 million from last year's Adopted Budget. This decrease is due to decreased transfers from the Capital Reserve Fund to the Capital Improvement Projects Fund and a decrease in CIP projects for the year.

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

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

The Proposed Budget for Enterprise Funds is $9.2 million, similar to the prior year Adopted Budget amount. The Enterprise Funds are funded by $5.6 million in program revenue, $1.7 million in transfers in, and $1.9 million in reserves. The Enterprise Funds are projected to end the year with $4.8 million in reserves, a decrease of $2.2 million from last year's Adopted Budget. This decrease is due to the use of reserves, which were accumulated in previous years. During the pandemic, the Parks and Recreation funds accumulated reserves as revenues were higher than expenditures.

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

The Proposed Budget for Internal Service Funds is $10.0 million, which is a slight increase of $1.4 million, compared to last year's Adopted Budget. The Internal Service Funds are funded by $6.0 million in program revenue, $3.6 million in transfers from the General Fund, and $0.4 million in reserves. The Internal Service Funds are projected to end the fiscal year with $3.2 million in reserves, decreasing by $2.5 million from last year's Adopted Budget.

FY 2025-26 Proposed Budget Budget Overview 31
90 CC 05-15-2025
90 of 655
Special Projects
The FY 2025-26 Proposed Budget allocates funds for Special Projects, which are typically one-time operational projects. This includes City Council Work (CWP) Program items that are included in the Special Project expense category. We have split special projects below to be reflective of the CWP and all other special projects. The Special Projects are detailed in the respective program's Special Project section and summarized in the table below. Some Special Projects' budgets from previous fiscal years may also be carried forward into FY 2025-26. For a more detailed list of the CWPs, please see the Strategic Goals section in the Introduction.

City Council Work Program
All Other Special Projects
FY 2025-26 Proposed Budget Budget Overview 32
91 CC 05-15-2025
91 of 655
Current Economic Update
National and State Economic Conditions
In the first quarter of 2025, the U.S. economy grew at a modest annualized rate of 1.1%, signaling a slowdown from the 2.3% expansion in the final quarter of 2024. This deceleration was primarily due to a significant reduction in business inventories, which subtracted approximately 2.3 percentage points from overall growth. Companies typically cut inventories when anticipating a downturn, reflecting cautious economic sentiment.

The Federal Reserve's aggressive interest rate hikes—nine increases over the past year—have raised borrowing costs, particularly affecting the housing market and consumer spending. Banks have tightened lending standards, making it more challenging for consumers and businesses to obtain credit. Despite a slight easing of inflation from last year's four-decade high, it remains well above the Fed's 2% target, contributing to concerns about a potential recession.

Looking ahead, economists project continued economic challenges, with some forecasting a mild recession in the near future. The Federal Reserve aims to achieve a "soV landing" by cooling growth enough to curb inflation without triggering a severe downturn.

However, there is skepticism about the success of this strategy, with some models indicating a high probability of recession within the next year.

As of March 2025, the U.S. unemployment rate is 4.2%, showing a slight increase from 3.8% in March 2024. The Employment Development Department also noted that March 2025 marks the fiVh consecutive month that unemployment decreased in California (-7,000), with the total number of unemployed persons dropping by 24,300 persons over that timeframe. Although California lost 11,600 nonfarm jobs in March, it increased year-over by 46,500 jobs between March 2024 and March 2025. Since April 2020, California gained 3,057,800 jobs, averaging 51,827 jobs per month.

The California Association of Realtors (CAR) reported a 6.7 % increase in statewide median home prices in March. Additionally, the statewide single-family home sales for March 2024 are up 3.5% in March 2024. Similarly, Santa Clara County's growth rate is at

11.3% in prices of single-family homes and a 4.4% increase in sales compared to the same period last year.

Cupertino Economic Conditions
The unemployment rate in the San Jose-Sunnyvale-Santa Clara MSA was 4.2% in March 2024, up from the year-ago estimate of

3.2%. This was below the unemployment rate for California and the nation during the same period. The number of employed persons was 1.03 million in March 2024, down from 1.05 million in March 2023.

FY 2025-26 Proposed Budget Budget Overview 33
92 CC 05-15-2025
92 of 655
Housing prices remain relatively strong compared to the same period in 2022. Based on data from Redfin, the median sales price for all home types was $3,300,000 for March 2024 compared to $2,758,000 in March 2023 . The City experienced a net taxable value increase of 4.6% for the FY 2023-24 tax roll.

FY 2025-26 Proposed Budget Budget Overview 34
93 CC 05-15-2025
93 of 655
Key Budget Assumptions
Revenue Assumptions
The City's General Fund revenues heavily depend on property tax, sales tax, and transient occupancy tax (TOT). However, the CDTFA audit is expected to alter the way sales tax is allocated to the City, leading to a significant reduction in sales tax revenue.

As a result, the City anticipates General Fund revenues to decrease by $30 million, or 28%, from original projections.

Personnel Assumptions
FY 2024-25 salaries and benefits reflect the cost-of-living adjustments and health insurance contribution increases approved by the City Council in November 2023.

Employees who have yet to reach the top step in their classification’s salary range are eligible to receive a step increase on their anniversary date. Typically, classifications have five steps, with each increase equivalent to a 5% increase in salary. Currently, approximately 38% of employees are below Step 5.

Non-Personnel Assumptions
Non-Personnel budgets were developed based on previous year's actual expenditures and adjusted for the current year's needs.

One-time projects were excluded to reflect ongoing expenditure needs. In response to the anticipated revenue shortfall resulting from the CDTFA audit, departments were asked to find ways to reduce the base budget. To balance the budget, various categories including materials, contract services, capital outlays, special projects, transfers to other funds, and contingencies were reduced in the Adopted Budget.

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

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

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

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

Summary of Proposed Budget Requests by Department
FY 2025-26 Proposed Budget Budget Overview 35
94 CC 05-15-2025
94 of 655
FY 2025-26 Proposed Budget Budget Overview 36
95 CC 05-15-2025
95 of 655
Summary of CIP Projects
FY 2025-26 Proposed Budget Budget Overview 37
96 CC 05-15-2025
96 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Budget Overview 38
97 CC 05-15-2025
97 of 655
Budget Guide
FY 2025-26 Proposed Budget Budget Guide 39
98 CC 05-15-2025
98 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Budget Guide 40
99 CC 05-15-2025
99 of 655
Elements of the Budget Document
The budget is the City’s fundamental policy document. It describes the City’s goals and details how resources are allocated to achieve these goals. The budget serves as the annual financial plan, an operations guide, and a communications tool.

The budget guide provides an overview of the elements of the budget document. It includes a glossary of budget terminology. The budget document includes the following key elements:

Budget Message: This section includes the City Manager’s transmiDal leDer submiDing the budget to the City Council. The Budget Message also summarizes the City’s current and long-term financial position, highlights new programs and organizational changes addressed in the budget, and outlines both short and long-term goals of our city government.

Budget Guide: This section includes the City’s Mission and other tools to assist the reader in identifying key terminology in the budget document.

Community Profile: This section describes Cupertino’s history, the economic and city profiles, community statistics, recreation and community services, education, and additional areas of interest in the city.

Financial Policies: This section provides financial policies.

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

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

Departmental Operating Budgets: This section details historical and budgeted expenditures by operating department. The City is organized into eight key operating functions, including Council and Commissions, Administration, Law Enforcement, Innovation and Technology, Administrative Services, Parks and Recreation, Community Development, and Public Works. Each department budget includes a summary narrative, financial information for the department and each of its major divisions, and staffing information.

Expenditures for employee compensation and benefits are based on negotiated contracts. The materials categories of expenditures are based on a zero-base budget, with increases each year by the Consumer Price Index (CPI). Contract services are also based on a zero-based budget, with increases each year based on negotiated increases or CPI. Capital outlays are justified each year by the departments. Special Projects include one-time operational projects.

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

Capital Improvement Program (CIP): The Capital Improvement Program is in a separate document, called Capital Improvement Program, that details the proposed capital projects for the next five fiscal years. The five-year plan denotes funding sources and a description of each project. The City Council approves funding for capital projects yearly. The project may expend the funds over multiple years.

FY 2025-26 Proposed Budget Budget Guide 41
100
CC 05-15-2025
100 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Budget Guide 42
101
CC 05-15-2025
101 of 655
Community Profile
FY 2025-26 Proposed Budget Community Profile 43
102
CC 05-15-2025
102 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Community Profile 44
103
CC 05-15-2025
103 of 655
History
“This place of San Joseph Cupertino has good water and much firewood, but nothing suitable for a se$lement because it is among the hills very near to the range of cedars which I mentioned yesterday, and lacks level lands .” When Spanish explorer San Juan Bautista De Anza traveled through California in 1776, he and his party documented these words about the land surrounding Stevens Creek, named back then Arroyo San Joseph Cupertino. However, first impressions can oVen be misleading. Underneath the spiny, overgrown bush was a completely different land waiting to be uncovered. During this time, the area was populated by Native Americans who hunted and gathered, prospering from the abundant resources the land had to offer.

It wasn’t until 1848 when the first American seDler, Elijah Stephens, a blacksmith from South Carolina, moved to the area—at this time, named simply ‘West Side’ and primarily owned by the government. AVer crossing over the Sierra Nevada in wagons, he discovered the true value of the land underneath the bush and proceeded to purchase over 300 acres of farmland to grow grapes and blackberries. Stephens pioneered the way for farmers, which established West Side as an agricultural hot spot. The land Stephens owned eventually became Blackberry Farm, and the road, creek, and reservoir were all named aVer him, although misspelled.

In the early West Side, many of the newest advances in agriculture were being developed. SeDlers were drawn to the land because of its rich earth, where they were able to grow products that competed on the world market. Once the bush had been cleared, they grew grapes, which covered the West Valley area with vineyards by the late 1800s. By the 1900s, a plant louse called Phylloxera spread throughout the vineyards, aDacking the roots of the grapevines, killing the grapes, and puDing a halt to wine production.

As a solution, nearly everything was replanted with fruit orchards. When the fruit trees blossomed, visitors would come to the orchards for “The Valley of Heart’s Delight” festivals, which celebrated the prosperous agriculture of the West Valley area.

Apart from the farmland, West Side was primarily known as a crossroads, an intersection between Saratoga-Sunnyvale Road and Stevens Creek. This served as a way station for travelers to pass through while going from town to town. As more people came to West Side to take advantage of the rich farmland, more family holdings gathered around the crossroads. Starting off as just a post office and home union store, West Side’s humble crossroads brought many diverse communities, all aDracted by the preferable climate and profitable market for crops.

As more people were drawn to the area around the crossroads, the orchards were gradually replaced with modern houses for workers. The population steadily grew, and the face of West Side changed, progressing into a more modern town. The community wanted to rename the city, so as to not confuse it with other cities, as well as establish a unique identity. John T. Doyle, a lawyer from San Francisco, and writer of historical anthologies on the area chose the name “Cupertino” aVer the original name of the creek.

AVer the post-World War II population boom, the growing community petitioned for Cupertino to become an incorporated town.

Members of the community were worried that the alternative to incorporation was to have parts of Cupertino annexed by surrounding cities, spliDing up the community and erasing the local culture. To preserve the rural atmosphere, lower taxes for farmers, start a local government, and prepare for growth, Cupertino voted for incorporation. In 1955, Cupertino officially became the 13th city in Santa Clara County.

By the 1970s, Cupertino once again began to undergo dramatic changes. The growing community aDracted several large technology corporations. Lockheed Martin, HP , Intel, and many other big names established themselves in Silicon Valley. Apple Inc. was founded in Cupertino in 1976 and quickly grew into the tech giant it’s known for today.

FY 2025-26 Proposed Budget Community Profile 45
104
CC 05-15-2025
104 of 655
Apple Park Visitor Center
In the late 20th century, Cupertino and the surrounding areas experienced another surge in population growth, this time due to the immigration of people from Asian countries. Immigration laws at the time were in favor of families looking to move to Silicon Valley. People immigrated here for a variety of reasons—whether they were aspiring for career prospects with major tech companies, or striving for quality education for their children, everyone who immigrated here had a common goal: to find opportunities to work hard for a better life for themselves and their families.

FY 2025-26 Proposed Budget Community Profile 46
105
CC 05-15-2025
105 of 655
Community Economic Profile
Cupertino, with a population of 57,237 and City limits stretching across 13-square miles, is considered one of the most prestigious cities to live and work in the Bay Area.

Economic health is an essential component to maintaining a balanced city, which provides high-level opportunities and services that create and help sustain a sense of community and quality of life. Public and private interests must be mutual so that success as a partnership is a direct reflection of success as a community. The cornerstone of this partnership is a cooperative and responsive government that fosters residential and business prosperity and strengthens working relationships among all sectors of the community.

Because Cupertino is mostly built-out city, the City of Cupertino focuses on business retention and revitalization, while at the same time, being supportive of redevelopment projects to bring in new investment. Cupertino is world-renowned as the home to high- tech giants, such as Apple, Inc. and Amazon, and as a community with stellar public schools. De Anza College, one of the largest single-campus community colleges in the country, is another major employer and a magnet for aDracting local and international students. The City’s proactive economic development efforts and a high-touch approach has resulted in an innovative environment for start-ups and growing companies to thrive, including Moxo, DURECT Corporation, Claspp, Mirapath, Aemetis Inc, Mist Systems, and many more. The City strives to retain our companies and aDract new ones through active outreach and a responsive, streamlined, and customer-oriented entitlement process.

Cupertino is excited to have a number of mixed-use development projects offering diverse retail and dining options, as well as providing additional housing opportunities to meet the needs of the growing community. There are also quite a few development projects already entitled including: Westport Cupertino, Marina Plaza, Alan Row, and Canyon Crossing. Further, City Council recently approved the 283,000 square foot mixed Office/Commercial Apple development at 19191 Vallco Parkway.

Main Street
The Main Street and Nineteen800 mixed-use developments continue to offer a vibrant downtown area for Cupertino, offering a large selection of restaurants and retailers, including Alexander’s Steakhouse, Eureka!, Oren’s Hummus, Lazy Dog, Ippudo, HaiDiLao Hotpot Restaurant, Pineapple Thai, Pressed Juicery, Orangetheory Fitness, 85 Degree Bakery, Somi Somi, Sul & Beans, Kura Sushi, Vitality Bowls, Tan Cha, Koja Kitchen, Bishops Cuts/Colors, Capezio, Howard’s Shoes, Philz Coffee, Pacific Catch, Holder’s Country Inn, Koi Palace Contempo, and Meet Fresh. Housing, office, and the Residence Inn by MarrioD and Main Street Cupertino LoVs are available to support the thriving area. Benihana, Bowlmor, and Cupertino Ice Center also serve as long-time anchors.

Serving as a long-time retail anchor for the community, The Marketplace has a variety of stores and restaurants popular with students, families, and working professionals. They include Galpao Gaucho (Brazilian Steakhouse), Daiso, Marukai Groceries, Harumi Sushi, La Patisserie Bakery, Beard Papa’s, Legend’s Pizza, Icicles, Kong’s Tofu & BBQ, and One Pot Shabu Shabu to name a few.

FY 2025-26 Proposed Budget Community Profile 47
106
CC 05-15-2025
106 of 655
The shopping center improvements to Cupertino Village reflect building upgrades and renovations, newly constructed buildings, parking, and open space. The shopping center, located in the northeast portion of the city, is home to 99 Ranch Market, Duke of Edinburgh Pub & Restaurant, Ume Tea, Tofu Plus, Kira Kira Beauty, Ten Ren Tea, Fantasia Coffee & Tea, Happy Lemon, Shanghai Family Restaurant, and many other Asian restaurants, bakeries, and shops. The property owners have also received approval to construct a new full-service boutique hotel with 185 rooms to accommodate business and leisure travelers.

Cupertino features many other retail opportunities, including TJ Maxx and Home Goods, Whole Foods, Target, Party City, and over 180 food and beverage establishments to serve residents and the local workforce. There are seven hotels providing over 1,000 rooms, to serve the area: The AloV Cupertino, Cupertino Hotel, Hilton Garden Inn, HyaD House, Juniper Hotel operated by Curio, Marriott Courtyard, and the Residence Inn by Marriott.

Another longtime retail anchor in north Cupertino is Homestead Square Shopping Center, located at Homestead Road and De Anza Boulevard. This shopping center includes a Safeway, Starbucks, Ulta Beauty, Ross Stores, Pet Club, Michael’s, FedEx, and numerous restaurants, such as Fish’s Wild, Pho Hoa Noodle Soup, Yayoi Teishoku Japanese Restaurant, and Chipotle.

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

Apple Park Retail Store
Apple Park, Apple’s newest corporate campus, features approximately 2.8 million square feet of office and R&D space north of Highway 280 between Wolfe Road and Tantau Avenue. A state-of-the-art Visitors Center, Observation Deck, flagship retail store, and café offer the public a place to learn, explore, and shop.

FY 2025-26 Proposed Budget Community Profile 48
107
CC 05-15-2025
107 of 655
Community Statistics
Facts and Figures
Population in City Limits 57,237
Average Household Income $295,070
Average Age 54
Registered Voters 33,697
Democrats 15,400
Republicans 4,628
American Independent 571
Other 348
No Political Party Designated 12,750
Claritas 2025 Estimates and County of Santa Clara Registrar of Voters as of April 21, 2025 Top 25 Sales Tax Producers 2024 (in Alphabetical Order) 99 Ranch Market
Alexander's Steak House
Apple
Argonaut Window & Door
Benihana
BJ's Restaurant & Brewhouse
California Dental Arts
Chevron
Chipotle
Cupertino Car Wash
Dish N Dash
Galpao Gaucho
Great Gas Cupertino
Haidilao Hot Pot
Home Eat
Insight Direct
Insight Public Sector
Kura Revolving Sushi Bar
Lazy Dog Cafe
Rotten Robbie
Safeway
Shane Company
Target
TJ Maxx
Whole Foods Market
HdL Companies 3Q 2024 Sales Tax Update
1 1
2 2
FY 2025-26 Proposed Budget Community Profile 49
108
CC 05-15-2025
108 of 655
FY 2025-26 Proposed Budget Community Profile 50
109
CC 05-15-2025
109 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Community Profile 51
110
CC 05-15-2025
110 of 655
Financial Policies
FY 2025-26 Proposed Budget Financial Policies 52
111
CC 05-15-2025
111 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Financial Policies 53
112
CC 05-15-2025
112 of 655
Financial Policies
Financial policies can now be found at: hDps://www.cupertino.gov/budget in the Financial Policies accordion or scan the QR code below.

FY 2025-26 Proposed Budget Financial Policies 54
113
CC 05-15-2025
113 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Financial Policies 55
114
CC 05-15-2025
114 of 655
All Funds Financial Schedules
FY 2025-26 Proposed Budget All Funds Financial Schedules 56 115
CC 05-15-2025
115 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget All Funds Financial Schedules 57 116
CC 05-15-2025
116 of 655
Financial Overview by Fund
The chart above demonstrates how revenues (left to right) and expenditures (right to left) flow Where revenues meet expenditures at the center of the chart (fund line type), a gap to the left i FY 2025-26 Proposed Budget All Funds Financial Schedules 58 117
CC 05-15-2025
117 of 655
Flow of Funds Chart (Sankey)
ut of and into each type of City fund.
ndicative of expenditures exceeding
FY 2025-26 Proposed Budget All Funds Financial Schedules 59 118
CC 05-15-2025
118 of 655
All Funds Summary
This section provides information on the FY 2025-26 Special Revenue, Debt Service, Capital Project, Enterprise, and Internal Service Funds budgets including, expenditure and revenue highlights, transfers to other funds, reserve funds, and the financial forecast. For descriptions of funds, see Financial Policies: Fund Structure.

Revenue Estimates
Estimates for FY 2025-26 fund balance and individual revenue accounts are based upon a careful examination of the collection history and paDerns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. Each source of revenue can be influenced by external and/or internal factors outside of the City's control.

FY 2025-26 Proposed Budget All Funds Financial Schedules 60 119
CC 05-15-2025
119 of 655
Special Revenue Funds
Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds include the Park Dedication, Transportation, Storm Drain, and Environmental Management/Clean Creeks funds.

Revenue
Revenue sources have decreased by $4.5 million. Use of Money & Property is decreasing due to lower projected interest earnings.

Intergovernmental is decreasing due to federal and state grants.

Expenditures
Expenditure uses have decreased by $3.1 million. Capital Outlays are lower due to lower Capital Improvement Program (CIP) projects and lower Cost Allocation expenses.

Fund Balance
Fund balance represents fund savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance.

FY 2025-26 Proposed Budget All Funds Financial Schedules 61 120
CC 05-15-2025
120 of 655
Debt Service Fund
The Debt Service Fund provides for the payment of principal, interest, and associated administrative costs incurred with the issuance of debt instruments for the City’s Public Facilities Corporation. The budget funds the Corporation’s annual payment of principal and interest on the City Hall/Community Hall/Library Certificates of Participation (COP) that will be paid off by July 1, 2030.

On September 29, 2020, the City’s 2020A Certificates of Participation (2020 COPs) were successfully sold in order to refund the City’s 2012 Certificates of Participation for debt service savings. The refunding generated net present value savings of approximately $3.14 million, 11.61% of refunded par, and a True Interest Cost of 0.72%. Savings to the City’s General Fund amounts to approximately $494,000 per year for the next ten years or almost $5 million in total savings.

Revenue
Revenue sources are relatively unchanged from the last fiscal year. The $2.7 million transfer from the General Fund funds the annual payment of principal and interest for the City’s debt.

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

Fund Balance
Fund balance represents fund savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance.

FY 2025-26 Proposed Budget All Funds Financial Schedules 62 121
CC 05-15-2025
121 of 655
Capital Project Funds
This fund pays for the acquisition of major capital facilities and/or construction of major capital projects.

Revenue
Revenue sources have decreased by $9.6 million. As a result of the revenue shortfalls stemming from the CDTFA audit, the annual transfers from the General Fund to the Capital Reserve had been reduced until FY 2029-30. With resolution reached with CDTFA in October 2024, these transfers have since restarted in March 2025.

Expenditures
Expenditure uses have decreased by $17.8 million due to less CIP projects this year.

Fund Balance
Fund balance represents fund savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance.

FY 2025-26 Proposed Budget All Funds Financial Schedules 63 122
CC 05-15-2025
122 of 655
Enterprise Funds
Enterprise Funds are set up for the provision of specific services that are funded directly by fees charged for those goods or services. Enterprise Funds include the Resource Recovery, Sports Center, Blackberry Farm Golf Course, and Recreation funds.

Revenue
Revenue sources have increased by approximately $0.7 million. In FY 2023-24, as a result of anticipated revenue shortfalls due to the CDTFA audit, transfers from the General Fund to the Enterprise Funds had been reduced as part of an expenditure reduction strategy aimed at decreasing General Fund subsidies of Enterprise Funds. Transfers to the Enterprise Funds have resumed closer to historical levels in FY 2024-25.

Expenditures
Expenditure uses have remained relatively unchanged from the prior fiscal year.

Net Position
Enterprise funds carry net position instead of fund balance. Net position is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending net position. However, some of these resources are not liquid and represent capital assets. These monies are generally accumulated to support capital replacement and/or expansion needs. It is projected to decrease due to revenues being lower than expenditures.

FY 2025-26 Proposed Budget All Funds Financial Schedules 64 123
CC 05-15-2025
123 of 655
Internal Service Funds
Internal Service Funds are used for areas where goods or services are provided to other departments or governments on a cost- reimbursement basis. Internal Service Funds include Information & Technology, Vehicle & Equipment Replacement, Workers' Compensation, Compensated Absences & Long-Term Disability, and Retiree Medical funds.

Revenue
Revenue sources have increased by $1.8 million due to an increase in charges for services. In FY 2023-24, the City resumed transfers to the Retiree Medical Fund because the City's Other Post-Employment Benefits (OPEB) plan is below 100% funded.

Expenditures
Expenditure uses have increased by $1.4 million due to increase in cost allocation and special projects.

Net Position
Internal Service Funds carry net position instead of fund balance. Net position is calculated in the same manner as fund balance, taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending net position. However, some of the resources are not liquid and represent capital assets. These monies are generally accumulated to support capital replacement and/or expansion needs. Net positions is relatively unchanged from the prior fiscal year.

FY 2025-26 Proposed Budget All Funds Financial Schedules 65 124
CC 05-15-2025
124 of 655
All Funds Revenues
FY 2025-26 Proposed Budget All Funds Financial Schedules 66 125
CC 05-15-2025
125 of 655
All Funds Expenditures
FY 2025-26 Proposed Budget All Funds Financial Schedules 67 126
CC 05-15-2025
126 of 655
All Funds Expenditures by Department
FY 2025-26 Proposed Budget All Funds Financial Schedules 68 127
CC 05-15-2025
127 of 655
All Funds Fund Balance
For descriptions of funds, see Financial Policies: Fund Structure.

FY 2025-26 Proposed Budget All Funds Financial Schedules 69 128
CC 05-15-2025
128 of 655
General Fund Financial Schedules
FY 2025-26 Proposed Budget General Fund Financial Schedules 70 129
CC 05-15-2025
129 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget General Fund Financial Schedules 71 130
CC 05-15-2025
130 of 655
General Fund Contribution Schedule
FY 2025-26 Proposed Budget General Fund Financial Schedules 72 131
CC 05-15-2025
131 of 655
FY 2025-26 Proposed Budget General Fund Financial Schedules 73 132
CC 05-15-2025
132 of 655
FY 2025-26 Proposed Budget General Fund Financial Schedules 74 133
CC 05-15-2025
133 of 655
FY 2025-26 Proposed Budget General Fund Financial Schedules 75 134
CC 05-15-2025
134 of 655
FY 2025-26 Proposed Budget General Fund Financial Schedules 76 135
CC 05-15-2025
135 of 655
FY 2025-26 Proposed Budget General Fund Financial Schedules 77 136
CC 05-15-2025
136 of 655
General Fund Summary
The General Fund is the City's main operating fund, responsible for providing essential services such as law enforcement, public works, community development, park maintenance, code enforcement, and administrative support. It is funded by discretionary sources such as property tax, sales tax, transient occupancy tax, and utility tax. The General Fund is typically reserved for operations that lack other dedicated funding sources, while operations such as street maintenance, solid waste collection, and recreation are funded from other sources, detailed in the All Funds Summary section of this document.

For FY 2025-26, General Fund revenues are estimated at $97.2 million, a $31.5 million, or -24.5% decrease from the previous year's Projected Budget. General Fund expenditures are estimated to be $99.1 million, a $38.5 million or -28.0%, decrease from the previous year's Projected Budget. Since expenditures exceed revenues, the estimated use of fund balance is $1.9 million. The budget is short of balancing, and staff recommends using unassigned fund balance to fill the gap in funding this year . The General Fund's ending fund balance is projected to be $146.9 million.

FY 2025-26 Proposed Budget General Fund Financial Schedules 78 137
CC 05-15-2025
137 of 655
General Fund Revenues
FY 2025-26 General Fund revenue sources have been carefully evaluated by considering collection history, seasonal paDerns, and economic performance. These estimates are based on projected increases or decreases in activity and receipts in the upcoming year.

It is important to note that each revenue source can be affected by external or internal factors beyond the City's control.

As shown in the chart below, FY 2025-26 revenues are estimated at $97.2 million, a $5.6 million, or 8.3% increase from the FY 2024- 25 Adopted Budget. This increase is primarily due to an increase in Property Tax, Intergovernmental Revenues, and Franchise Fees. These revenue categories will be discussed in greater detail in the following sections.

The majority of Cupertino's General Fund operating revenues are generated by property taxes (36%), charges for services (16%), sales taxes (12%), and transient occupancy taxes (8%). The chart below illustrates the sources of General Fund revenue by category.

The FY 2025-26 General Fund revenue estimates are discussed by category below.

FY 2025-26 Proposed Budget General Fund Financial Schedules 79 138
CC 05-15-2025
138 of 655
Sales Tax
Sales and Use Tax, commonly known as the "sales tax," consists of two components: an excise tax levied on retailers for selling tangible personal property, and an excise tax applied to purchases from out-of-state vendors that are not required to collect tax on their sales. The revenue generated from sales and use taxes collected within Cupertino's boundaries is allocated by the State to various agencies, with the City receiving one percent, as depicted in the chart to the right. The City considered the ¼ cent sales tax revenue source imposed on local governments. However, the City decided not to proceed with this item for the 2024 election due to unknown conflicting proposals.

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

In December 2021, the CDTFA informed the City of an audit that would be conducted on one of its taxpayers. The City was verbally informed in March 2023 of the CDTFA's preliminary determination that tax dollars had been misallocated to the City, and potential impacts on City funds were provided. This resulted in both a one-time repayment of past sales tax revenues and an ongoing reduction of approximately $30 million in sales tax revenue.

In October 2024, the City resolved the dispute with CDTFA regarding the distribution of sales tax revenues to Cupertino. The seDlement reached with the CDTFA allows the City to keep the funds previously allocated and anticipated for receipt through June 2024 and avoid lengthy and costly litigation.

FY 2025-26 Proposed Budget General Fund Financial Schedules 80 139
CC 05-15-2025
139 of 655
Property Tax
Under current law, property is assessed at actual full cash value, with the maximum levy being 1% of the assessed valuation. The assessed value of real property that has not changed ownership can be adjusted by the change in the California Consumer Price Index (CCPI) up to a maximum of 2% per year. Property that changes ownership, property that is substantially altered, newly- constructed property, State-assessed property, and personal property are assessed at the full market value in the first year and subject to the two percent cap thereafter.

In 1978, voters approved the passage of Proposition 13, which froze property tax rates and limited the amount that rates could increase each year. Cupertino had one of the lowest property tax rates in Santa Clara County, receiving only $0.02 for every $1.00 paid. Subsequent legislation required Counties to provide "no/low tax" cities with a Tax Equity Allocation (TEA) equal to 7% of the property tax share. However, the property tax distribution for the no/low tax cities in Santa Clara County was limited to 55% of what other TEA cities in the State received.

In FY 2006-07, West Valley cities won the passage of State legislation which restored a portion of TEA property tax revenue. This TEA change provided an additional $1.35 million in property tax annually and increased the City's share of property taxes to 5.6%.

In conjunction with three other West Valley cities, Cupertino continued legislative efforts to gain parity with other no/low property tax cities in the State. In FY 2015-16, Governor Brown agreed to restore TEA revenues over a five-year period. In FY 2019-20 TEA was fully restored, and Cupertino kept approximately 7.0% of property tax revenues in FY 2019-20 compared to 6.72% in FY 2018-

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

FY 2025-26 Proposed Budget General Fund Financial Schedules 81 140
CC 05-15-2025
140 of 655
The citywide growth in value in the FY 2024-25 assessment roll was $1.4 billion, an increase of 4.4%. This is in comparison to the positive increase in 2023-24 tax year of $1.4 billion for an increase of 4.6%. The bulk of the increase was due to increases in residential properties by $1.1 billion, or 5.7%. This category makes up 63.2% of the net taxable value. Unsecured property tax decreased by $64.7 million, or 5.7%. This category makes up 3.2% of the net taxable value. Lastly, commercial property values increased by $225.1 million, or 2.5%. This category makes up 27.7% of the net taxable value.

The FY 2025-26 Property Tax revenue estimate is based on 2024-25 values and estimated changes according to HdL, the City's property tax consultant. HdL also provides insight into real estate trends for calendar year 2024, the year that influences the 2025- 26 property values enrolled. In the 2024 calendar year, counties are still experiencing declines in the number of recorded sales from 2023. Home sales pulled back in June as interest rates remained high. Home sales have continued to trend lower than those reported over the past several years and median sale value growth has not been as large as we have seen in many of the years since 2020.

Transient Occupancy Taxes
Transient occupancy taxes (TOT) are levied on hotels and short-term room rentals located in the City at 12% of room revenues. In November 2011, 83% of voters approved increasing the rate from 10% to 12%. This rate increase contributed to the upward trend shown in the TOT Historical Trend graph.

FY 2025-26 Proposed Budget General Fund Financial Schedules 82 141
CC 05-15-2025
141 of 655
$7.5 million is anticipated in TOT revenues during FY 2025-26, a 3% decrease from the FY 2024-25 Adopted Budget. According to HdL, business travel has not returned compared to pre-pandemic levels. 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. Historical growth in TOT revenues is due to new hotels. Since 2015, the following hotels have been added to the City: MarrioD at Main Street and HyaD House at Vallco. Staff will continue to monitor this revenue source and bring forward adjustments and recommendations as necessary.

Utility Tax
The utility user tax (UUT), approved by voters in 1990, is assessed on gas, electricity, and telecommunication services provided within the City's jurisdiction at a rate of 2.4% of billed charges. Revenues generated from this tax can be used for general City purposes.

The City's tax rate is generally lower than that of other cities within Santa Clara County, as shown in the chart above. In March 2002, voters approved extending the utility tax's sunset date from 2015 to 2030. This extension corresponded with the extended debt maturity date resulting from the refinancing of debt for capital improvement projects. To maintain tax revenues received from telecom services, voters passed a measure in 2009 to update the ordinance to the changing technology in this area.

In FY 2025-26, budgeted revenues are in line with FY 2024-25 Adopted Budget amounts. This revenue source will be monitored closely as the fiscal year progresses.

FY 2025-26 Proposed Budget General Fund Financial Schedules 83 142
CC 05-15-2025
142 of 655
Franchise Fees
Franchise fees are received from cable, solid waste, water, gas, and electricity franchisees that operate in the City. The fees range from 1% to 12% of the franchisee's gross revenues, depending on each agreement. As shown in the graph below, these revenues are relatively steady and not sensitive to economic fluctuations, aside from a spike in revenue in FY 2023-24. This revenue spike was related to a combination of the new franchise agreement with associated rate increases plus the demolition of the Oaks shopping center, which increased the usage of Recology debris boxes.

FY 2025-26 Proposed Budget General Fund Financial Schedules 84 143
CC 05-15-2025
143 of 655
In FY 2025-26, budgeted revenues are expected to increase approximately 25.22% from the prior year Adopted Budget due to a n alignment of actual dollars received. This revenue source will be monitored closely as the fiscal year progresses.

Other Taxes
Other taxes are comprised mainly of business license taxes, construction taxes, and property transfer taxes. As shown in the graph, business license and property transfer taxes are relatively steady, while construction taxes are extremely volatile and sensitive to economic fluctuations.

Revenues in this category have returned to historic levels aVer Apple Park and Main Street developments have completed. In FY 2025-26, these revenues are expected to increase slightly from the prior year adopted budget. The projected increase is based on estimated increases in business license taxes and property transfer taxes. According to HdL, for FY 2025-26, the projected increase from known 2024 transfers is used to estimate value growth. For this scenario, the estimated growth from transfers in 2026-27 adjusts the growth as a percentage of real value in 2025-26 by 5.0%. For years 2027-28 and later, growth is based on the historical average rate of real property growth due to properties that have transferred ownership.

Charges for Services
FY 2025-26 Proposed Budget General Fund Financial Schedules 85 144
CC 05-15-2025
144 of 655
Charges for Services account for charges to users of City services funded by the General Fund as well as internal City-wide overhead. The City aDempts to recover the cost of the services, including planning, zoning, and engineering permit processing for new property development, as well as some recreation-related fees. As such, this revenue source is sensitive to economic fluctuations, as shown in the graph below.

Beginning in FY 2013-14, enterprise funds, internal service funds, and special funds began charging for overhead services previously subsidized by the General Fund. Some internal strategic support services (Human Resources, Finance, City Clerk, etc.) also began charging internal departments to capture the true cost of providing various programs and services within City operations. AVer a comprehensive Cost Allocation Plan was received and filed by Council in February 2024, internal strategic support services (City Council, Facilities, Maintenance, etc.) were included. In FY 2023-24, the City's administration changed its methodology for tracking developer deposits driven by increased developer activity, and, as a result, both budgets for revenues and expenses were increased by anticipated deposit amounts leading to another large increase in revenue.

In FY 2024-25, estimated revenues are expected to come in roughly $2.3 million higher compared to budgeted levels due to the Vallco Town Center (renamed the Rise) and its scheduled commencement in FY 2023-24, in which the applicant received approval of value-engineered and modified plans. Revenues are carried forward until project completion.

FY 2025-26 revenues are projected to be 0.4% lower than the prior year adopted budget. This projected decrease is primarily due to a reduction in Other Service Fees, following the reclassification of an account to its appropriate budget category of Intergovernmental revenue. Other contributing factors are a decrease in Vallco Town Center (the Rise) engineering fees.

Licenses and Permits
Licenses and permits include fees for reviewing building plans, building inspections, construction, tenant improvements, and commercial/residential installations for compliance with state and municipal building codes.

FY 2025-26 Proposed Budget General Fund Financial Schedules 86 145
CC 05-15-2025
145 of 655
Apple Park and large residential projects (Rosebowl, Biltmore expansion, Main Street) generated significant permiDing revenues in FY 2013-14 (not shown in the trend chart above). Since then, activity has slowed until FY 2018-19, when revenues came in 48.8% higher. Although this revenue source is relatively consistent from year to year, fluctuations may occur depending on the timing of projects being completed. The $34 million estimated amount in FY 2024-25 is due to plan check fee revenues anticipated to be recognized for Vallco Town Center (renamed The Rise). In FY 2025-26, revenues are budgeted at $4.3 million, a 16.2% increase from the prior year adopted budget.

Use of Money and Property
The use of money and property category is comprised of General Fund interest earnings as well as facility and concession rental income of City-owned property. As of March 31, 2025, the City's portfolio included $67.3 million invested with the Local Agency Investment Fund (LAIF) and a total market value of $172.4 million with Chandler Asset Management. As of March 31, 2025, the City also had $22.5 million in its Section 115 Pension Trust, which is restricted for pension costs.

Fluctuations in this revenue category are a result of investment earnings, as rental income is fairly steady. Investment earnings were higher in FY 2020-21 and FY 2023-2024 due to investment gains in the City's Section 115 Pension Trust. Investment earnings fell in FY 2021-22 and FY 2024-2025 due to mark-to-market adjustments to account for unrealized losses in the City's portfolio.

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

FY 2025-26 Proposed Budget General Fund Financial Schedules 87 146
CC 05-15-2025
146 of 655
Investment earnings are a function of the amount of cash available for investment, current interest rates, and the composition of investments. The City's investment objectives, in order of priority, are:

Safety to ensure the preservation of capital
Sufficient liquidity for cash needs
A market rate of return consistent with the investment program In FY 2025-26, revenues in this category have increased 39.2% from the prior year adopted budget primarily 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.

Fines and Forfeitures
Fines and forfeitures account for revenues generated from vehicle, parking, and miscellaneous code violations issued by the County Sheriff and the City's Code Enforcement officers. Revenues in this category dropped significantly in FY 2020-21 due to pandemic related restrictions and have increased over the next few years as society continued to rebound from the pandemic. In FY 2024-25, this revenue source is expected to reach $395,000. Revenues in FY 2025-26 are expected to slightly increase 4.0% from the prior year adopted budget driven by an expected rise in citations issued as the Code Enforcement division reaches full staffing this fiscal year.

FY 2025-26 Proposed Budget General Fund Financial Schedules 88 147
CC 05-15-2025
147 of 655
Intergovernmental
Intergovernmental revenues are made up of federal, state, and regional grants, including miscellaneous intergovernmental revenue.

FY 2025-26 revenues in this category are anticipated to be 44.4% higher than the prior year adopted budget primarily aDributed to anticipated funds received from other cities for the Via community shuDle. This revenue has been reclassified from Charges for Services to its appropriate budget category of Intergovernmental revenues. The increase is also due to an increase in anticipated state grant revenues received, primarily due to a grant for the Via community shuttle.

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

FY 2025-26 Proposed Budget General Fund Financial Schedules 89 148
CC 05-15-2025
148 of 655
FY 2025-26 miscellaneous revenues are budgeted 37.8% higher than the prior year adopted budget. The majority of the General Fund's miscellaneous revenues are due to Sheriff services from Apple for Law Enforcement services at Apple Park.

Other Financing Sources
Other Financing Sources generally account for refundable deposit revenues within the Community Development Department.

With significant fluctuations, year-over-year, staff conservatively estimate these revenues. In FY 2025-26, revenues are projected to be relatively consistent with the prior year adopted budget.

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

In FY 2023-24, actual transfers were high due to a transfer in from the Capital Reserve for the I-280/Wolfe project. FY 2024-25 is anticipated to end the year within budgeted levels. In FY 2025-26, the City plans to transfer $15,000 from the City's Tree Fund to the General Fund to support ongoing tree maintenance operations.

FY 2025-26 Proposed Budget General Fund Financial Schedules 90 149
CC 05-15-2025
149 of 655
General Fund Expenditures
The estimates for FY 2025-26 General Fund expenditures are based on a thorough analysis of anticipated personnel and non- personnel costs. To create a more fiscally responsible budget, department budgets reflect a base budget with only justified ongoing expenses. This accounts for changes in personnel costs as well as any other anticipated or known increased costs in FY 2025-26.

As shown in the chart on the next page, FY 2025-26 expenditures are estimated at $99.1 million, which represents an $9.1 million, or

10.1%, increase compared to the adopted budget from the prior year. This budget reflects increases in Contract Services, Capital Outlay and Special Projects, and Cost Allocation.

The largest General Fund operating expenditure categories include Employee Compensation and Benefits (35.1%), Contract Services (31.8% ), Cost Allocation (12.1%), Materials (6.2%), and Transfers (10.7%) as illustrated in the FY 2025-26 General Fund Expenditures by Category chart.

FY 2025-26 Proposed Budget General Fund Financial Schedules 91 150
CC 05-15-2025
150 of 655
Personnel Costs
In FY 2025-26, personnel costs are expected to reach $34.7 million, accounting for 35% of the General Fund expenditures. These costs include salaries and compensation for benefited and part-time staff (68%), retirement benefits (15%), and other fringe benefits (17%), such as health coverage.

To obtain these figures, the City extracted data from the payroll system and made necessary updates to account for vacant positions, new hires, salary adjustments, and reallocated positions. Furthermore, the projected costs of benefits for the upcoming year, such as retirement and health plans, were taken into consideration. A transfer to the Retiree Medical Fund for retiree healthcare, which is an ongoing expense, is budgeted in FY 2025-26.

The FY 2025-26 Adopted Budget includes funding for a total of 210 positions, representing an increase of 3 positions from the FY 2024-25 Amended Budget.

Non-Personnel
In FY 2025-26, non-personnel costs make up 54% of the total at $99.1 million. Contract services are the largest component at 31.8%, followed by Cost Allocation at 12.1%, Transfers at 10.7%, and Materials at 6.2%.

One-time projects were separated into a different category in FY 2013-14 to ensure expenditure trends reflect ongoing needs. In FY 2017-18, special projects and capital outlays were categorized separately from other costs. Per the City Council Special Project Policy adopted in FY 2024-25, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories.

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

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

FY 2025-26 Proposed Budget General Fund Financial Schedules 92 151
CC 05-15-2025
151 of 655
General Fund Transfers
Transfers out represent transfers of monies out of the General Fund to various other funds. These transfers provide resources to the receiving fund to support operating and capital expenditures. Transfers from the General Fund are as follows:

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

FY 2025-26 Proposed Budget General Fund Financial Schedules 93 152
CC 05-15-2025
152 of 655
General Fund Fund Balance
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds are made up of the following:

Nonspendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, prepaid items, property held for resale, and long-term notes receivable.

Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or liVed only with the consent of resource providers.

Commi?ed Fund Balance – includes amounts that can only be used for the specific purposes determined by formal action of the City’s highest level of decision-making authority, the City Council. Commitments may be changed or liVed only by the City taking the same formal action (resolution) that imposed the constraint originally.

Assigned Fund Balance – comprises amounts intended to be used by the City for specific purposes that are neither restricted nor commiDed. The intent is expressed by the City Council or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. Through the adopted budget, the City Council establishes assigned fund balance policy levels and also sets the means and priority for the City Manager to fund these levels.

Unassigned Fund Balance – is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Only the General Fund reports a positive unassigned fund balance. A governmental fund other than the General Fund may report a negative unassigned fund balance if expenditures incurred for a specific purpose exceed the amounts that are restricted, committed, or assigned to those purposes.

In circumstances when an expenditure may be made for which amounts are available in multiple fund balance classifications, the fund balance in General Fund will generally be used in the order of restricted, unassigned, and then assigned reserves. In other governmental funds, the order will generally be restricted and then assigned.FY 2025-26 Proposed Budget General Fund Financial Schedules 94 153
CC 05-15-2025
153 of 655
General Fund Classification of Fund Balance
FY 2025-26 Proposed Budget General Fund Financial Schedules 95 154
CC 05-15-2025
154 of 655
General Fund Forecast
Overview
The City has reached resolution on the California Department of Tax and Fee Administration (CDTFA) Audit, this budget focuses on the 10-year forecast post this resolution. While long-term projections may be less precise than short-term projections, they can help identify potential structural budget issues in advance.

The following chart shows a structural deficit that begins in FY 2033-34 due to expenditures (3.76% average annual growth rate) growing at a faster rate than revenues (1.71% AAGR).

Although this forecast is an improvement from FY 2024-25 Adopted Budget, comparing this forecast to the update forecast provided to the City Council in March 2025 we now have the last two years of the forecast with modest deficits. This is driven primarily by increased expenditures from higher growth than expected in Materials and Contracts and Special Projects. Most notably law enforcement costs have materialized at 6% vs. the 4% in the forecast. Additionally, staff has ongoing requests for:

Salaries and Benefits for the addition of three new positions and two part-time positions that total $768,316.

Materials and contracts total $544,340.

This forecast does not assume increases fees scheduled to be presented to City Council on May 6, 2025.

The results of an audit by CDTFA have been finalized. The final impact of this audit have resulted in a decline of $30 million, or 73%, in sales tax revenues. This resulted in an overall decrease to total City revenues of $30 million, or 28%, from the original FY 2023-24 forecast. The ongoing impacts of the audit are included in this forecast.

The Council and staff have demonstrated proactive fiscal stewardship in response to the evolving financial landscape. The FY 2023-24 Adopted Budget, and FY2024-25 budget both included significant reductions totaling almost $24 million dollars as illustrated in the table1 below:

Additionally, on October 10, 2023, the Council established a commiDed Sales Tax Repayment Reserve with an initial allocation of $56.5 million. This reserve was designed to address a potential adverse CDTFA decision and the uncertain outcome of the anticipated legal challenge. Funding came from Unassigned fund balance, the Capital Projects Reserve, and the Economic Uncertainty Reserve. Staff will be going to Council on May 21, 2024, to increase the Sales Tax Repayment Reserve to $74.5 million.

FY 2025-26 Proposed Budget General Fund Financial Schedules 96 155
CC 05-15-2025
155 of 655
In October 2024, the City reached resolution with the CDTFA which allowed the City to keep previously disputed revenues but the ongoing reductions to sales tax will remain and are included in this forecast.

In November 2024 staff brought a plan to allocate the Sales Tax Repayment Reserve. Ultimately, City Council voted to allocate $10 million for an Additional Discretionary Payment (ADP) to CalPERS, the City’s retirement system, resulting in reduced retirement costs throughout the forecast. The remaining $64.5 million has been place in a new commiDed reserve, “Reserved for Future Use”.

Any use of these dollars must have approval from the City Council.

As we progress through the current fiscal year and other in the forecast, staff will continue to keep the Council, Community and Staff up to date on the City’s Financial Forecast.

The City has been successful in making reductions needed to help balance the General Fund budget for all but two of the years, with deficits now beginning in FY2034 of the forecast, again an improvement over last year but a decline from the Mid-Year Financial Report, as discussed in the overview section of the forecast.

In the out years, the deficit is primarily due to a recession scenario in FY 2027-28, and the sunset of the Utility Users Tax in FY 2030-

31. This forecast is still an improvement and continues to give the City the ability to balance the budget without the use of reserves.

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

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

While economic conditions are the primary drivers for economically sensitive revenues such as sales tax and property tax, other factors drive non-economically sensitive categories such as utility user taxes and franchise fees. These revenue categories are more heavily impacted by utility rate changes, energy prices, and consumption levels. Revenues from local, state, and federal agencies are primarily driven by grant and reimbursement funding. As a result, these revenues experience no significant net gain or loss FY 2025-26 Proposed Budget General Fund Financial Schedules 97 156
CC 05-15-2025
156 of 655
during economic expansions or slowdowns. All revenue projections are based upon trend analysis, including a careful examination of the collection history and paDerns related to seasonality and the economic environment the City is most likely to encounter in the future. Staff also considered the impacts of the CDTFA audit in determining the sales tax estimates.

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

To create the revenue forecasts, the City reviewed national, state, and regional economic forecasts from multiple sources, including the Congressional Budget Office, California’s Legislative Analyst’s Office (LAO), and the Center for Continuing Study of the California Economy (CCSCE). To develop the sales tax, property tax, and transient occupancy tax (TOT) revenue projections, the City worked with HdL Companies, a tax consultant.

The City's Consumer Price Index (CPI) forecasts are from:

UCLA Anderson Forecast for the Nation and California
California Department of Transportation’s California County-Level Economic Forecast In 2019, the City worked with UFI (Urban Futures, Inc.), a financial advisory and consulting firm, to:

Review, update, and enhance the City’s baseline financial forecast.

Evaluate fiscal strategies, including potential local revenue measures.

Develop capital financing options, structures, and estimates for identified projects.

Prepare an analysis of city charter costs/benefits related to fiscal activities.

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

Increased the sales tax growth rate.

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

Incorporated 2% salary savings to account for vacant positions.

Updated CPI data source to UCLA Anderson Forecast.

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

Implemented updates to the Economic Uncertainty Reserve level every year.

In 2025 staff further reviewed the forecast the City has made the following updates:

Aligned Property Tax, Transient Occupancy Tax, and Franchise Fee revenue estimates with historical actuals.

Included interest earnings related to the $74.5 million, now $64.5 in the forecast.

Update the vacancy rate from 2% to 4% to better align with historical vacancy rates.

Included the water lease payment into the forecast.

Resumed transfers out to the Capital Reserve in all years of the forecast.

National Economic Outlook
In the first quarter of 2025, the U.S. real gross domestic product (GDP) contracted at an annualized rate of 0.3%, marking the first decline since early 2022. This downturn was primarily driven by a significant surge in imports, as businesses and consumers accelerated purchases ahead of newly announced tariffs by the Trump administration. The resulting record trade deficit substantially offset gains from consumer spending and business investment.

Despite the contraction, the labor market remained relatively stable, with the unemployment rate holding at 4% and layoffs remaining minimal. However, early indicators suggest potential economic weakening, with signs of slower job growth and declining wage gains.

Inflationary pressures have shown signs of easing. The Consumer Price Index (CPI) rose 2.4% over the 12 months ending March 2025, down from 2.8% in the previous period. Core inflation, which excludes food and energy, increased by 2.8% over the same period, marking the smallest 12-month increase since March 2021.

FY 2025-26 Proposed Budget General Fund Financial Schedules 98 157
CC 05-15-2025
157 of 655
Cupertino Economic Outlook
The City does not anticipate significant impacts on property tax revenues in FY 2025-26. The City is optimistic about the future of transient occupancy tax (TOT) revenues, as the relaxation of pandemic-related restrictions has boosted business travel.However, the recovery of this crucial tax revenue has been slower than expected.

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

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

The City's General Fund revenues are projected to be $97.2 million in FY 2025-26 and are expected to increase over the forecast period. Property tax and transient occupancy tax are expected to continue to be consistent revenue sources, with projected increases. However, sales tax is projected to decrease significantly due to the CDTFA resolution.

The National Bureau of Economic Research (NBER), an American private nonprofit research organization, defines the beginning and ending dates of recessions. The NBER defines a recession as "a significant decline in economic activity spread across the economy, lasting more than two quarters which is six months, normally visible in real gross domestic product (GDP), real income, employment, industrial production, and wholesale-retail sales. Since World War II, recessions have lasted an average of 10 months and have occurred, on average, about every 6.5 years. As a result, the forecast assumes a recession every seven years where most revenues remain flat while expenditure continues to increase. The forecast incorporates a recession scenario in FY 2027-28. This is a change from the previous recessionary assumption of every four years. The update was made based on a recommendation from Baker Tilly.

Per City Council direction in April 2025 as part of the Budget Format Review item, 10 years of historical actual data is now shown along with 10 years of forecast data for each revenue category.

FY 2025-26 Proposed Budget General Fund Financial Schedules 99 158
CC 05-15-2025
158 of 655
Sales Tax
Prior to FY 2023-24, sales tax has been the City’s largest revenue source. Sales taxes are collected at the point of sale and remiDed to the California Department of Tax and Fee Administration (CDTFA), formerly the Board of Equalization.

Sales tax revenues are projected to increase by an average annual growth rate of 2.98% in the forecast. Staff used moderate estimates for business and industry, general consumer goods, restaurants and hotels, and state and county pools.

Historically major drivers that caused fluctuation in this revenue category stemmed from the following:

Sales Tax Localization Agreement with Apple (FY15, impact in FY17 and FY18) Negotiated a new sales tax-sharing agreement split (changed from 50/50 to 35/65 in the middle of FY14) Closeout of the triple flip (FY17)
Wayfair Decision/AB 147 (changed how out of state online purchases are taxed and distributed FY21) Online and Business to Business increased significantly from FY20 to FY23 County Pool increased from FY20 to FY23 due to the strong performance of online and B2B, as well as the decline of most other Santa Clara County agencies' sales tax during the same time.

California Department of Tax and Fee Administration (CDTFA) audit in FY24 FY 2025-26 Proposed Budget General Fund Financial Schedules 100 159
CC 05-15-2025
159 of 655
Property Tax
Property taxes are projected to remain stable in the near term. However, the impact of potential remote work on property taxes in the long term is uncertain. The trend towards remote work has caused people to reconsider where they choose to live, which could lead to a decrease in demand for residential real estate. The high-interest rate environment and a slow turnover rate of properties in the City may also impact this revenue category. Additionally, companies may need less office space if fewer employees are working at the office, which could decrease demand for commercial office space. This could result in a reduction of property tax revenue for the City.

In FY 2025-26, property tax revenues are expected to reach $35.4 million and increase at an average annual growth rate of 2.88% in the forecast. The moderate forecast is based on a range of factors, including historical trends for the City and projections for the region. While property tax has grown at an average annual rate of 11% historically, this projection assumes a lower growth rate.

Historical property tax growth has been due to significant development projects such as Main Street and Apple Park, as well as the restoration of Tax Equity Allocation (TEA) revenues from FY 2015-16 to FY 2019-20.

Historically, major drivers that caused fluctuation in this revenue category stemmed from the following:

5.6% to 7% City property tax share due to Tax Equity Allocation (TEA) restoration from FY15 to FY20 and Education Revenue Augmentation Fund (ERAF) shift
Apple Park and other developments
Increase in residential and other commercial property values.

The current projection does not assume any such developments in the near future, resulting in a more modest growth rate forecast.

The City will continue to monitor economic and market trends to ensure that property tax revenue projections remain accurate.

Transient Occupancy Tax
FY 2025-26 Proposed Budget General Fund Financial Schedules 101 160
CC 05-15-2025
160 of 655
The City's current forecast assumes that TOT revenues will be $7.5 million in FY 2025-26 and gradually increase. The forecast projects an average annual growth rate of 1.76% for TOT revenues. This moderate forecast is based on historical tax collections and assumes slower growth than historical trends. Historical growth in TOT revenues was primarily due to the addition of new hotels and a voter-approved increase in the TOT rate from 10% to 12% in 2012.

Historically major drivers that caused fluctuation in this revenue category stemmed from the following:

TOT rate increased from 10% to 12% in FY13.

New hotels
Short-Term Rentals
Shelter-in-place (fourth quarter of FY20)
Business travel affected by pandemic.

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

Licenses and Permits
The City's forecast projects an average annual growth rate of 0.44% for licenses and permits revenue, based on forecasts of California residential building permits, non-residential building permits, and construction payrolls from the UCLA Anderson Forecast for the Nation and California.

It is important to note that this forecast does not take into account any significant development projects that are awaiting approval. If new development projects are approved, staff will update this forecast accordingly. The large spike in FY 2024- 25 are due to Rise revenues that are currently budgeted.

FY 2025-26 Proposed Budget General Fund Financial Schedules 102 161
CC 05-15-2025
161 of 655
Charges for Services
Charges for services revenues are projected to increase at an average annual growth rate of 3.04%. Other Service Fees, Cost Allocation Plan Charges for Services, and General Service Fees are expected to increase by the full-time salary growth rate.

Planning Fees and Engineering Fees are forecasted based on construction and development factors, such as California residential and non-residential building permits, and construction payrolls from the UCLA Anderson Forecast for the Nation and California.

FY 2025-26 Proposed Budget General Fund Financial Schedules 103 162
CC 05-15-2025
162 of 655
This forecast does not consider any significant development projects awaiting approval. The City will update the forecast if new projects are approved.

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

Franchise fees are projected to increase by an average annual growth rate of 1.52% based on a trend of historical data.

Other taxesare made up of construction, property transfer, and business license tax revenue. Revenue is projected to increase by an average of State and County CPI.

Use of money and property are projected based on the City’s forecasted General Fund fund balance and the City's current investment strategy. The Section 115 Pension Trust is expected to grow at the discount rate of 6.25%.

Intergovernmental revenues are projected to grow at a rate of 0.44% each year.

Fines and Forfeitures are forecasted to remain constant in the forecast.

Miscellaneous revenues are forecasted to increase by CPI each year.

Non-operational revenues (Transfers and Other Financing Sources)  are not assumed in the forecast.

Expenditures
In FY 2019-20, the City developed a zero-based budget, which involved analyzing every function of the City for its needs and costs.

As a result, all costs were justified, and base budget savings were achieved.

In FY 2023-24, and FY 2024-25 the City implemented several budget-balancing that are discussed earlier in this section.

In FY2025-26, staff is requesting to add three new full-time benefited positions and 2 part-time positions totaling $768,316 and almost $700,000 in ongoing cost in all other expenditure categories.

To inform these decisions, the City developed a forecast based on actual expenditures in prior years and FY 2025-26 projections.

The forecast also considered factors such as CPI, construction and development activity, and CalPERS Normal Cost and Unfunded Liability projections, including the ADP payment made in December 2024. The forecast will be adjusted throughout the year to account for one-time changes and budget adjustments.

FY 2025-26 Proposed Budget General Fund Financial Schedules 104 163
CC 05-15-2025
163 of 655
Per City Council direction in April 2025 as part of the Budget Format Review item, 10 years of historical actual data is now shown along with 10 years of forecast data for each expenditure category.

The chart above illustrates the projected General Fund expenditures, which are estimated to be $97.2 million in FY 2025-26, with an expected increase over the forecast period. The forecasted expenditure growth is primarily driven by increasing Law Enforcement costs. To provide an in-depth understanding of the estimated expenditure categories in the General Fund Forecast, the following discussion focuses on the assumptions made for each category.

Personnel Expenditures
Salaries
FY 2025-26 salaries and benefits do not reflect the cost-of-living adjustments (COLA)s as the City’s labor contract are set to expire on June 30, 2025. The City is currently in the process of negotiating successor agreements. In the forecast, full-time salaries are expected to increase by estimated payroll increases from the CalPERS valuation report. On the other hand, part-time salaries are forecasted to grow at a rate of 1.5%, because historically, part-time salaries have tended to grow at a slower rate than full-time salaries. A 4% vacancy rate has been included in the out-years of the forecast. This vacancy rate was added at 2% in FY 2024-25 and is being increased this year to align with historical vacancy rates. The vacancy rate is not included in the budgeted salary and benefits as the City budget at the position level making is difficult to determine where vacancies may occur.

Employees who have yet to reach the top step in their classification’s salary range are eligible to receive a step increase on their anniversary date. 39% of employees are below the top step. Typically, classifications have five steps, with each increase equivalent to a 5% increase in salary.

Health Benefits
In FY 2025-26, health benefits account for about 11% of all personnel costs in the General Fund, primarily due to health insurance costs. The City pays employees a fixed amount for health and dental insurance costs instead of covering a percentage of premiums. As the City is currently in negotiations, health rates are forecasted to grow by 4.73% but will be updated once a successor agreement is negotiated.

Historically major drivers that caused fluctuation in this revenue category stemmed from the following:

FY 2025-26 Proposed Budget General Fund Financial Schedules 105 164
CC 05-15-2025
164 of 655
Retirement Benefits
The forecast reflects a notable decrease in retirement-related costs as a result of the $10 million one-time Additional Discretionary Payment (ADP) made to CalPERS in FY 2024-25 to reduce the City’s Unfunded Accrued Liability (UAL). This strategic payment lowered the City’s annual UAL contributions beginning in FY 2025-26, resulting in significant cost savings over the forecast period.

While the annual savings gradually decline as CalPERS amortization schedules normalize, the ADP provides meaningful near- term budget relief and long-term fiscal benefits. As a result, retirement costs are projected to be lower than previously forecasted, helping to stabilize Employee Compensation and Benefits expenditures across the 10-year horizon.

Other Benefits
The forecast assumes health insurance increase by 4.73% for the second half of FY 2025-26 and then, dental insurance, and vision insurance increase by CPI. No increases were forecasted for the following benefits: internet allowance, standby pay, Employee Assistance Program, and Deferred Compensation. Rec Bucks are assumed to increase at a 0.5% growth rate.

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

Materials costs are forecasted to increase by CPI.

Contract Services costs are projected to grow by CPI except for the Law Enforcement contract with the Santa Clara County Sheriff’s Office. Law Enforcement costs are projected to grow by 6%%. Per the terms of the contract, the annual increase is limited to the lesser of:

Percentage increase in total compensation and annual CalPERS cost increase Annual CPI plus 2% and annual CalPERS cost increase
The City's current agreement with the Santa Clara County Sheriff's Office is set to expire in June 2026. These costs have been a significant driver of the City's expenditure growth in recent years, and it is expected that they will continue to increase in the coming years.

Cost Allocation is projected to grow by 2.75%.

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

Contingencieshave been calculated based on FY 2025-26 base materials and contracts and have been moved to materials. The only remaining is the City Manager's Contingency Fund at $50,000 unchanged since FY 2023-24 with no escalator for these funds in the forecast.

Transfersrepresent the General Fund’s contributions to other City funds to support debt payments, pay retiree health costs, finance capital projects, replenish capital reserves, acquire new equipment, and subsidize enterprises and operations. AVer the implementation of a comprehensive Cost Allocation Plan in FY 2015-16, General Fund expenses have been shiVed to other City funds, causing some of those funds’ revenues to fall short of expenses and necessitating the use of fund balances to cover expenses.

The General Fund benefits in the near term from the cost shiV; however, aVer fund balances in those other funds are drawn down to minimum levels and absent aggressive revenue or cost actions in those other funds, General Fund subsidies are necessary to maintain fund balance minimums.

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

Special Revenue Funds: $1.5 million annually.

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

Capital Reserve: $2 million
Retiree Medical Fund: Funding from FY 2024-25 to FY 2026-27 to restore OPEB plan to 100% funded. Funding normal cost in the subsequent years.

Compensated Absences Fund: $0.6 million annually
FY 2025-26 Proposed Budget General Fund Financial Schedules 106 165
CC 05-15-2025
165 of 655
Enterprise Funds: $1.0 million annually.

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

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

Fund Balance
The foresight of the City Council and staff in previous years to focus on ensuring healthy reserves is paying off in full.

The General Fund’s Unassigned fund balance remains healthy and will be able to assist in addressing funding gaps. In addition, the General Fund's Committed and Restricted fund balance includes:

For Future Use Reserve: may be used for any purposed as determined by City Council Economic Uncertainty Reserve: may be used to mitigate potential shortfalls.

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

In FY 2025-26, the General Fund’s total fund balance is projected to be $156.7 million, and the General Fund's Unassigned fund balance is projected to be $39.2 million.

FY 2025-26 Proposed Budget General Fund Financial Schedules 107 166
CC 05-15-2025
166 of 655
Potential Budget-Balancing Strategies
Historically, the City has maintained a structurally sound budget, with revenues surpassing expenditures in most fiscal years.

During periods of excess revenue, the City has transferred the surplus fund balance to the Capital Reserve Fund in accordance with the City's Fund Balance and Use of One-Time Funds Policy.

However, the forecast shows a potential structural deficit resulting from the decrease in sales tax revenue due to the CDTFA audit and the sunset of the Utility Users Tax. A structural deficit occurs when recurring expenditure consistently surpasses recurring revenues, leading to an ongoing imbalance that cannot be remedied through short-term solutions.

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

FY 2025-26 Proposed Budget General Fund Financial Schedules 108 167
CC 05-15-2025
167 of 655
Potential Strategy Description Potential
Impact
Currently
Recommended
Section 115
Pension Trust
In FY 2017-18, the City established a Section 115 Pension Trust to mitigate pension rate volatility when CalPERS investment returns are below the discount rate or when CalPERS changes assumptions. The City can also use it to offset pension costs in any given year.

The City established a Section 115 Trust to reduce pension rate volatility when CalPERS investment returns are below the discount rate or when CalPERS changes assumptions. The City can also use it to offset pension costs.

The fund
has a
balance
of $21.6
million.1
Yes
Section 115 OPEB
Trust
In FY 2009-10, the City established a Section 115 OPEB Trust to help fund its retiree health obligations, also known as other post-employment benefits (OPEB).

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

The fund
has a
balance of
$39.2
million.1
Yes
Reserve for
Future Use
On November 19, 2024, the City Council created this reserve from unappropriated dollars from the Sales Tax Repayment Reserve This reserve
has a
balance of
$64.5
million

Economic
Uncertainty
Reserve
The General Fund Economic Uncertainty Reserve may be used to mitigate potential shortfalls.

The reserve
has a
balance
of $21.3
million.2
No
1 Balance as of March 31, 2024
2 Projected balance as of June 4, 2024

Expenditure Reduction Strategies
FY 2025-26 Proposed Budget General Fund Financial Schedules 109 168
CC 05-15-2025
168 of 655
Potential Strategy Description Potential Impact Currently Recommended
No new positions Cost containment strategy $0 Yes
Vacancy control Keep non-essential positions unfilled as they become vacant.

Approximately $184,000 per
position on average Yes
Employee cost-sharing
of increases to
CalPERS
Negotiate to share costs of increases to CalPERS
employer rates with employees. Would be subject to
bargaining unit agreement.
$250,000 approximate
based on a 5% rate increase No
Defer
or eliminate negotiated
increases
Would be subject to bargaining unit agreement.

Approximately $0.3 million
savings based on a 1%
decrease
No
Furloughs
Employees would take up to a 10% decrease in pay in
exchange for 1 unpaid furlough day per pay period.

Would be subject to bargaining unit agreement.

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

Approximately $184,000 per
position on average No
Reduction in capital
outlays and special
projects
Cost containment strategy Varies Yes
Reduction in
contingencies Cost containment strategy Up to $50,000 Yes Defer or cancel capital
projects Cost reduction strategy Varies Yes

Revenue Generation Strategies
FY 2025-26 Proposed Budget General Fund Financial Schedules 110 169
CC 05-15-2025
169 of 655
Potential
Strategy Description Potential
Impact
Currently
Recommended
¼ Cent
Transaction and
Use Tax (TUT)
Voter approval is required.

Could increase sales tax from 9.125% to 9.375%
$5.4 million1 No
Transient
Occupancy Tax
(2% increase)
Voter approval is required.

Could increase transient occupancy tax from 12% to 14%
$1.25M at
$7.5M base No
Parcel Tax Voter approval is required
$3.7M flat rate
per parcel
$3.8M
variable rate
per square
foot
No
Business
Operations Tax Employee count tax $4.2 million No
Increase fees
and cost-
recovery
Matrix Consulting Group conducted a fee study in 2023. The study assessed the potential for fee increases and cost recovery. The City Council adopted the new fee schedule in May 2024.

Varies Yes
Sale of City-
owned
Properties or
Assets
The sale of city-owned assets would generate one-time revenue. Varies No

1 HdL estimate as of July 2023
Development Revenue Estimates
The City's current forecast does not incorporate potential significant development projects that are pending approval and permitting. However, once new development projects receive approvals and permits, staff will update the forecast accordingly.

The table below shows our best estimates of potential development revenue. These figures serve as rough approximations and are intended to give you a general idea of what to expect. The timeline for each project represents the Community Development department's best estimate of when commencement is anticipated. It is crucial to note that these estimates are subject to adjustments as we gather additional information over time.

FY 2025-26 Proposed Budget General Fund Financial Schedules 111 170
CC 05-15-2025
170 of 655
Gann Appropriations Limit
In 1979, California voters approved Proposition 4, the Gann Initiative, and added Article XIIIB to the California State Constitution.

Article XIIIB mandates a limit on the amount of proceeds of taxes that state and local governments can receive and appropriate (authorize to spend) each year. The purpose of this law is to limit government spending by puDing a cap on the total proceeds of taxes that may be appropriated each year. Proposition 111 and Senate Bill 88, approved by California voters in June of 1990, offered cities more flexibility in choosing inflation and population factors to calculate the limit. 1 The following chart and table show the appropriations limit and actual expenditures subject to the appropriations limit.

The limit is different for each agency and changes annually. It is calculated by taking the amount of tax proceeds that were authorized to be spent in FY 1978-79 and adjusting for changes in inflation and population each subsequent year.

Proposition 111 changed the way the limit is calculated and allowed a City to increase its limit annually in two ways:

By the percent change in per capita personal income in California or the percent change in the assessment roll the preceding FY 2025-26 Proposed Budget General Fund Financial Schedules 112 171
CC 05-15-2025
171 of 655
year due to the addition of local non-residential new construction; or By the percent change in county or city population.

The City used the following factors from the California Department of Finance.

Price Factor
(A) Percent Change in California Per Capita Personal Income: 3.62% Population Factor
(B) Percent Change in County Population: 0.02%
(C) Percent Change in City Population: -0.31%
The City multiplied the FY 2023-24 appropriations limit by Price Factor (A) and Population Factor (B) to calculate the FY 2024-25 appropriations limit, as shown below:

FY 2023-24 Appropriations Limit $127,886,394
Price Factor (A) 1.0362
Population Factor (B) 1.0002
FY 2024-25 Appropriations
Limit
$132,542,385
The City's FY 2024-25 appropriations limit is $132.5 million, an increase of $4.7 million, or 3.6% from the prior year.

The Department of Finance has not yet released numbers for FY 2025-2026, this will be updated with the Adopted Budget.

FY 2025-26 Proposed Budget General Fund Financial Schedules 113 172
CC 05-15-2025
172 of 655
Legal Debt Margin
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when the assessed valuation was based upon 25% of market value. Effective FY 1981-82, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computation shown below reflects a conversion of assessed valuation data for FY 2024-25 from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the State.

Description Amount Formula
Debt Limit:

Secured Property Assessed Value, Net of Exempt
Real Property (1) $33,715,982,768
Adjusted Valuation - 25% of Assessed Valuation
(2) $8,428,995,692 (1) x 25%
Debt Limit - 15% of Adjusted Valuation $1,264,349,354 (2) x 15% Amount of Debt Subject to Limit:

Total Bonded Debt (3)
14,030,000
Less: Certificates of Participation Not Subject to
Debt Limit (4)

(14,030,000)
Amount of Debt Subject to Limit - (3) - (4) Legal Debt Margin $1,264,349,354
FY 2025-26 Proposed Budget General Fund Financial Schedules 114 173
CC 05-15-2025
173 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget General Fund Financial Schedules 115 174
CC 05-15-2025
174 of 655
Council and Commissions
FY 2025-26 Proposed Budget Council and Commissions 116
175
CC 05-15-2025
175 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Council and Commissions 117
176
CC 05-15-2025
176 of 655
Department Overview
Budget Units
Budget Unit Program 2026 Proposed Budget
City Council $ 720,339
100-10-100 City Council $ 593,801
100-10-101 Community Funding $ 33,086
100-10-104 Historical Society $ 40,000
100-10-110 Sister Cities $ 53,452
Commissions $ 400,894
100-11-131 Technology, Information & Communications Commission $ 22,260 100-11-140 Library Commission $ 27,327
100-11-142 Arts and Culture Commission $ 30,867
100-11-150 Public Safety Commission $ 19,917
100-11-155 Bicycle and Pedestrian Commission $ 16,815
100-11-160 Parks and Recreation Commission $ 25,230
100-11-165 Teen Commission $ 14,908
100-11-170 Planning Commission $ 124,073
100-11-175 Housing Commission $ 71,165
100-11-180 Sustainability Commission $ 17,210
100-11-190 Audit Committee $ 31,122
Total $ 1,121,233
FY 2025-26 Proposed Budget Council and Commissions 118
177
CC 05-15-2025
177 of 655
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 106,119
Total Expenditures $ 1,121,233
Fund Balance $ -
General Fund Costs $ 1,015,114
% Funded by General Fund 90.5%
Total Staffing 7.1 FTE
Organization
Liang Chao, Mayor
Kitty Moore, Vice Mayor
J.R. Fruen, Council Member
Sheila Mohan, Council Member
Ray Wang, Council Member
FY 2025-26 Proposed Budget Council and Commissions 119
178
CC 05-15-2025
178 of 655
Proposed Budget
It is recommended that City Council approve a budget of $1,121,233 for the Council and Commissions department. This represents an increase of $7,315 (0.7%) from the FY 2024-25 Adopted Budget.

Overall, this budget is consistent with the prior year Adopted Budget. However, there are several shiVs in this budget that result in an overall decrease. Reductions in benefits are due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Citywide memberships and dues that were previously in the City Council budget have been moved to Administration to beDer reflect the use of those dollars, and contract costs are increasing due to the transfer in of the internal audit contract from Administrative Services per City Council direction as part of the budget format review. Also, cost allocation charges are higher due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets.

FY 2025-26 Proposed Budget Council and Commissions 120
179
CC 05-15-2025
179 of 655
This is offset by budget requests that include increases in materials due to funds for and citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference. Also, in materials is a request for $3,000 for increased meal costs due to meeting frequencies, and in contracts a $30,000 increase in the internal audit contract to fund the FY26 Internal Audit Workplan. A City Work program item Financial, Investment and Cashflow Policy Review are included in this budget under the contract for internal audit for $25,000.

Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories.

FY 2025-26 Proposed Budget Council and Commissions 121
180
CC 05-15-2025
180 of 655
Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

64.2%

35.8%
City Council
Commissions
$1.10M
$954k
$1.11M $1.12M
2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Council and Commissions 122
181
CC 05-15-2025
181 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 830,532 $ 827,983 $ 104,305 $ 106,119 Total Revenues $ 830,532 $ 827,983 $ 104,305 $ 106,119
Expenditures
Employee Compensation $ 326,585 $ 291,431 $ 339,760 $ 320,191 Employee Benefits $ 195,869 $ 189,707 $ 257,659 $ 227,867 Materials $ 142,479 $ 103,431 $ 135,408 $ 85,321
Contract Services $ 164,201 $ 95,670 $ 129,826 $ 235,776 Cost Allocation $ 271,261 $ 273,620 $ 248,971 $ 252,078 Contingencies $ - $ - $ 2,294 $ -
Total Expenditures $ 1,100,395 $ 953,859 $ 1,113,918 $ 1,121,233 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 269,864 $ 125,875 $ 1,009,613 $ 1,015,114 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 123
182
CC 05-15-2025
182 of 655
Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.50 0.40 0.40 0.40
ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0 0.05
ASSISTANT ENGINEER 0 0 0.10 0
ASSISTANT HOUSING COORDINATOR 0 0 0 0.15
ASSIST TO THE CITY MNGR 0 0 0.05 0
ASST DIR RECREATION COMM SVCS 0.15 0 0 0
CHIEF TECHNOLOGY OFFICER 0.02 0.02 0.02 0.02
COMMS AND MARKETING COORDINATOR 0 0 0.15 0.15
COMMUNITY OUTREACH SPECIALIST 0.10 0.10 0.10 0.10
COUNCIL MEMBER 5.00 5.00 5.00 5.00
DIRECTOR OF COMM DEVELOPMENT 0.06 0.06 0.06 0.06
DIRECTOR OF PARKS REC 0.05 0 0 0
EMERGENCY SERVICES COORDINATOR 0.05 0.05 0 0
ENV. PROGRAMS SPECIALIST 0 0 0.05 0.05
EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50
FINANCE MANAGER 0.05 0.05 0.05 0.05
MANAGEMENT ANALYST 0.10 0.20 0.10 0.05
PLANNING MANAGER 0.10 0.10 0.00 0
PUBLIC INFORMATION OFFICER 0.15 0.15 0 0
RECREATION MANAGER 0.10 0.15 0.15 0.15
SENIOR HOUSING COORDINATOR 0 0 0.20 0.15
SENIOR MANAGEMENT ANALYST 0 0 0 0.05
SENIOR PLANNER 0 0.10 0.10 0.10
SR OFFICE ASSISTANT 0.20 0.20 0.20 0.10
SUSTAINABILITY MANAGER 0.05 0.05 0 0
TRANSPORTATION MANAGER 0.10 0.10 0 0
Total 7.28 7.23 7.23 7.13
FY 2025-26 Proposed Budget Council and Commissions 124
183
CC 05-15-2025
183 of 655
City Council
Budget Unit 100-10-100
General Fund - City Council - City Council
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 106,119
Total Expenditures $ 593,801
Fund Balance $ -
General Fund Costs $ 487,682
% Funded by General Fund 82.1%
Total Staffing 5.8 FTE
Program Overview
The Mayor and Councilmembers, acting as the elected representatives of the residents of Cupertino, establish public policies to meet the community needs of the City. This budget includes funding of $10,000 for the Mayor's Fund and $2,500 for fee waivers for the City Council members. Lastly, this budget includes the Moss Adams Internal Audit contract per Council direction.

Although the dollars are budgeted in this program, the contract administration remains with the Administrative Services Department.

Service Objectives
The City Council objectives are carried out by City staff under the sole direction of the City Manager.

Proposed Budget
It is recommended that City Council approve a budget of $593,801 for the City Council program. This represents an increase of $47,001 (8.6%) from the FY 2024-25 Adopted Budget.

This increase is primarily due to the addition of the Moss Adams Internal Audit contract, which was moved from the Administrative Services department per Council direction. This contract was originally $75,000 but staff is also requesting additional one-time funds of $20,000 to cover increased audit costs for FY26 as well as ongoing funds of $25,000. This budget unit is also requesting an additional $3,000 for meal costs for City Council meetings. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document under Budget Overview.

Special Projects
The following table shows the special projects for the fiscal year.

None
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 125
184
CC 05-15-2025
184 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 830,532 $ 827,983 $ 104,305 $ 106,119 Total Revenues $ 830,532 $ 827,983 $ 104,305 $ 106,119
Expenditures
Employee Compensation $ 148,303 $ 133,482 $ 148,580 $ 135,616 Employee Benefits $ 131,806 $ 116,879 $ 167,750 $ 147,777 Materials $ 112,595 $ 85,289 $ 108,890 $ 62,055
Contract Services $ 33,125 $ 13,848 $ 24,110 $ 140,640
Cost Allocation $ - $ - $ 95,807 $ 107,713
Contingencies $ - $ - $ 1,663 $ -
Total Expenditures $ 425,829 $ 349,498 $ 546,800 $ 593,801 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (404,703) $ (478,485) $ 442,495 $ 487,682 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget COMMS AND MARKETING COORDINATOR 0 0 0.10 0.10
COMMUNITY OUTREACH SPECIALIST 0.10 0.10 0.10 0.10
COUNCIL MEMBER 5.00 5.00 5.00 5.00
EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50
PUBLIC INFORMATION OFFICER 0.10 0.10 0 0
SR OFFICE ASSISTANT 0.15 0.15 0.20 0.10
Total 5.85 5.85 5.90 5.80
Staff time is being reallocated to better reflect actual time spent in this program FY 2025-26 Proposed Budget Council and Commissions 126
185
CC 05-15-2025
185 of 655
Community Funding
Budget Unit 100-10-101
General Fund - City Council - Community Funding
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 33,086
Fund Balance $ -
General Fund Costs $ 33,086
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
The Community Funding program provides funding for various community activities and community-based organizations throughout the fiscal year.

Service Objectives
Provide funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public.

Grant funding requests in a fair and equitable manner.

Grant funding requests per the updated Community Funding Policy revised and adopted by City Council on November 15, 2022.

Proposed Budget
It is recommended that City Council approve a budget of $33,086 for the Community Funding program. This represents a decrease of $22 (-0.1%) from the FY 2024-25 Adopted Budget.

The City provides funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. The Community Funding Grant application process opened on January 1, 2025, and closed on February 1, 2025.

FiVeen applications were received for the FY 2025-2026 Community Funding Grant Program cycle and were brought to the Parks and Recreation Commission for review on March 6, 2025. The Commission evaluated and scored the applications on April 3, 2025, and a recommendation was provided regarding funding to City Council for final approval.

FY 2025-26 Proposed Budget Council and Commissions 127
186
CC 05-15-2025
186 of 655
Non-Profit Organization FY 2024-25
Funding
FY 2024-25
Program/Project/Event
FY 2025-26
Funding
FY 2025-26
Program/Project/Event
Active Circle N/A N/A 2,000 All Inclusive Family Picnic AINAK 2,750 AINAK Eyeglasses 4,000 Eyecare and Eyeglasses Cupertino Little League 16,000 Scoreboard Replacement N/A N/A Cupertino Symphonic Band 3,000 Band Equipment & Materials 3,000 Band Equipment ElderAid N/A N/A 5,000
Background Verification
Integration and Support
Friends of Deer Hollow Farm N/A N/A 2,000 The Tule House Shelter iTalented N/A N/A 900 iSpark
No Time to Waste N/A N/A 5,000 5/1000: Feed the Need
Remember the ToothFairy N/A N/A 1,000 Dental Treatment Program Rotary Club of Cupertino 4,000 House Renovations 1,600
Thanksgiving Meal Sharing
Program
Special Olympics Northern
California N/A N/A 5,000
2025 Cupertino Bowling Team
Program
STEMBoost Corporation 3,000
Elementary Science Olympiad
Summer Workshops N/A N/A
Via Rehabilitation Services N/A N/A 1,000 STEAM & Outdoor Education West Valley Community Services 3,750 Gift of Hope 2024 2,000 Gift of Hope 2025 Total $ 32,500 $ 32,500
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 128
187
CC 05-15-2025
187 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ 109,460 $ 28,927 $ 32,500 $ 32,500
Cost Allocation $ 2,270 $ 2,267 $ 608 $ 586
Total Expenditures $ 111,730 $ 31,194 $ 33,108 $ 33,086 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 111,730 $ 31,194 $ 33,108 $ 33,086 Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Council and Commissions 129
188
CC 05-15-2025
188 of 655
Historical Society
Budget Unit 100-10-104
General Fund - City Council - Historical Society
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 40,000
Fund Balance $ -
General Fund Costs $ 40,000
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
The City has executed a Grant Funding and License Agreement with the Cupertino Historical Society, approved by City Council on October 4, 2022. The Agreement is set for three years, with an option to extend for another two. During this term the City is providing an annual grant amount of $40,000 and a license to utilize space at the Quinlan Community Center to the Cupertino Historical Society. In return, the Cupertino Historical Society will continue to manage and operate the Historical Museum, commit to the Service Objectives highlighted below, and other terms and conditions highlighted in the Agreement. The grant amount has been separated into this program for increased transparency.

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

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

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

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 130
189
CC 05-15-2025
189 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ - $ 40,000 $ 40,000 $ 40,000
Total Expenditures $ - $ 40,000 $ 40,000 $ 40,000
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ 40,000 $ 40,000 $ 40,000
Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Council and Commissions 131
190
CC 05-15-2025
190 of 655
Sister Cities
Budget Unit 100-10-110
General Fund - City Council - Sister Cities
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 53,452
Fund Balance $ -
General Fund Costs $ 53,452
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
Cupertino has four active Sister Cities registered with Sister Cities International: Toyokawa, Japan; Hsinchu, Taiwan; Copertino, Italy; and Bhubaneswar, India. The City of Cupertino also has four Friendship Cities: New Taipei City, Taiwan; Taichung, Taiwan; Tongxiang, People's Republic of China, and Xianning, People's Republic of China.

Service Objectives
To further international communication and understanding through the Sister City Program To foster educational, technical, economic and cultural exchanges To encourage student exchange programs to promote communication and understanding among people of different cultures
Proposed Budget
It is recommended that City Council approve a budget of $53,452 for the Sister Cities program. This represents a decrease of $5,559 (-9.4%) from the FY 2024-25 Adopted Budget.

The decrease is due to reductions in Cost Allocation expenses. This budget is aligned with the Sister City Policy.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 132
191
CC 05-15-2025
191 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 8,883 $ 7,086 $ 6,550 $ 6,551
Employee Benefits $ 3,003 $ 4,302 $ 3,967 $ 3,697
Materials $ 810 $ 8,180 $ 8,887 $ 9,507
Contract Services $ 11,347 $ 12,895 $ 20,000 $ 20,000
Cost Allocation $ 19,459 $ 18,520 $ 19,246 $ 13,697
Contingencies $ - $ - $ 361 $ -
Total Expenditures $ 43,502 $ 50,983 $ 59,011 $ 53,452
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 43,502 $ 50,983 $ 59,011 $ 53,452
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget COMMS AND MARKETING COORDINATOR 0 0 0.05 0.05
PUBLIC INFORMATION OFFICER 0.05 0.05 0 0
SR OFFICE ASSISTANT 0.05 0.05 0 0
Total 0.10 0.10 0.05 0.05
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Council and Commissions 133
192
CC 05-15-2025
192 of 655
Technology, Information & Communications Commission
Budget Unit 100-11-131
General Fund - Commissions - Technology, Information & Communications Commission Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 22,260
Fund Balance $ -
General Fund Costs $ 22,260
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Technology, Information, and Communications Commission advises the City Council and City Manager on all maDers related to technology, information, and communications within Cupertino. It serves as a liaison between the City, the public, and service providers to enhance education and engagement, including gathering resident input and sharing noncommercial educational materials. Additionally, the commiDee supports community access television, particularly public and educational access, and provides guidance on the development and implementation of access channels and programming. It also recommends strategies to optimize the City’s technology and communications infrastructure for the benefit of the community. Furthermore, the commiDee plays a key role in educating residents on the responsible and safe use of technology, including cybersecurity best practices (also see Municipal Code 2.74.060 Duties, Powers and Responsibilities).

Proposed Budget
It is recommended that City Council approve a budget of $22,260 for the Technology, Information & Communications Commission program. This represents a decrease of $1,091 (-4.7%) from the FY 2024-25 Adopted Budget.

This budget is consistent with the prior year Adopted Budget. There is a slight decrease due to staffing costs associated with the retirement of the previous Chief Technology Officer.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 134
193
CC 05-15-2025
193 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 11,291 $ 12,411 $ 11,757 $ 11,586 Employee Benefits $ 3,348 $ 4,564 $ 5,226 $ 4,717
Materials $ 187 $ 179 $ 400 $ 400
Cost Allocation $ 18,183 $ 18,487 $ 5,963 $ 5,557
Contingencies $ - $ - $ 5 $ -
Total Expenditures $ 33,009 $ 35,641 $ 23,351 $ 22,260
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 33,010 $ 35,641 $ 23,351 $ 22,260
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0 0 0
CHIEF TECHNOLOGY OFFICER 0.02 0.02 0.02 0.02
MANAGEMENT ANALYST 0 0.05 0.05 0.05
Total 0.07 0.07 0.07 0.07
There are no changes to current levels of staffing.

FY 2025-26 Proposed Budget Council and Commissions 135
194
CC 05-15-2025
194 of 655
Library Commission
Budget Unit 100-11-140
General Fund - Commissions - Library Commission
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 27,327
Fund Balance $ -
General Fund Costs $ 27,327
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Library Commission is a five-member commission appointed by City Council and holds the following powers and functions:

Consult with the City Council, the City staff and the Santa Clara County Library Joint Powers Authority and staff regarding the functioning of the physical facilities of the Cupertino Library and shall make recommendations from time to time for improvement or modification thereof.

Consult with the City Council, the City staff and the Santa Clara County Library Joint Powers Authority and staff regarding the Cupertino Library programs and services to the community and shall make recommendations from time to time for improvements or modifications thereof.

Consult with and act as liaison with private community groups supportive of the library program.

Consult with the architect and the City Council in the planning of any main or branch library building facilities, including locations, building layout, architecture, landscaping and furnishings.

Hold hearings, formulate policies and make rules and procedures with respect to the foregoing for approval by the City Council.

Perform such other tasks as may be expressly requested of it by the City Council.

The Library Commission meets every other month. A Parks and Recreation Department Recreation Manager serves as staff liaison.

Proposed Budget
It is recommended that City Council approve a budget of $27,327 for the Library Commission program. This represents a decrease of $521 (-1.9%) from the FY 2024-25 Adopted Budget.

This budget is consistent with the prior year Adopted Budget.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 136
195
CC 05-15-2025
195 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 19,956 $ 11,624 $ 12,402 $ 12,596 Employee Benefits $ 8,268 $ 5,675 $ 6,690 $ 6,176
Materials $ 53 $ - $ 11 $ 150
Contract Services $ 269 $ - $ 2,000 $ 2,000
Cost Allocation $ 32,894 $ 22,279 $ 6,720 $ 6,405
Contingencies $ - $ - $ 25 $ -
Total Expenditures $ 61,440 $ 39,578 $ 27,848 $ 27,327
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 61,440 $ 39,578 $ 27,848 $ 27,327
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
RECREATION MANAGER 0.05 0.05 0.05 0.05
Total 0.10 0.10 0.10 0.10
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Council and Commissions 137
196
CC 05-15-2025
196 of 655
Arts and Culture Commission
Budget Unit 100-11-142
General Fund - Commissions - Arts and Culture Commission Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 30,867
Fund Balance $ -
General Fund Costs $ 30,867
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Arts and Culture Commission, consisting of five members and a minimum of three City of Cupertino residents, holds the following powers and functions:

Foster, encourage and assist the realization, preservation and advancement of arts and culture for the benefit of the citizens of Cupertino.

Act as a catalyst for the promotion of art and cultural activities.

Keep current on potential arts and culture activities which would be available to the community.

Provide liaison between various arts and culture activities.

Provide a means for coordination for arts and culture groups or facilities which may exist within the community.

Maintain an inventory of facilities available for related arts and culture activities within the community.

Provide screening and/or review for arts and culture activities wishing to obtain city funds or utilize public facilities.

Provide information to the community relating to the arts.

Foster the development of public art within the community.

Be vigilant in exploring and advancing the range of arts and culture activities available to the community.

Enhance the interaction between arts and business.

Any other activity which may be deemed appropriate and necessary.

The Arts and Culture Commission meets every other month. The Senior Planner of Community Development serves as staff liaison.

Proposed Budget
It is recommended that City Council approve a budget of $30,867 for the Arts and Culture Commission program. This represents a decrease of $1,169 (-3.6%) from the FY 2024-25 Adopted Budget.

This budget is consistent with the prior year Adopted Budget.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 138
197
CC 05-15-2025
197 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ - $ 15,626 $ 15,382 $ 15,382
Employee Benefits $ (845) $ 5,212 $ 5,924 $ 5,049
Materials $ 3,453 $ 3,575 $ 4,089 $ 4,220
Cost Allocation $ 16,128 $ 15,845 $ 6,641 $ 6,216
Total Expenditures $ 18,736 $ 40,258 $ 32,036 $ 30,867
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 18,736 $ 40,257 $ 32,036 $ 30,867
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASST DIR RECREATION COMM SVCS 0.15 0 0 0
SENIOR PLANNER 0 0.10 0.10 0.10
Total 0.15 0.10 0.10 0.10
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Council and Commissions 139
198
CC 05-15-2025
198 of 655
Public Safety Commission
Budget Unit 100-11-150
General Fund - Commissions - Public Safety Commission
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 19,917
Fund Balance $ -
General Fund Costs $ 19,917
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Public Safety Commission is a five-member commission appointed by City Council and holds the following powers and functions:

Act in an advisory capacity to the City Council in all maDers pertaining to safety, traffic, police, fire and other areas wherein the matter of public safety may be of concern.

Hold hearings and formulate policies and procedures with respect to the foregoing for approval by the City Council.

Perform such other tasks as may be expressly requested of it by the City Council.

The Public Safety Commission meets every other month. The Assistant Director of the Parks and Recreation Department serves as staff liaison.

Proposed Budget
It is recommended that City Council approve a budget of $19,917 for the Public Safety Commission program. This represents a decrease of $16,652 (-45.5%) from the FY 2024-25 Adopted Budget.

This decrease is due to the reallocation of funds for the Public Safety Forum to the Office of Emergency Management budget and the SC County Sheriff's Community Academy to the Law Enforcement budget. These changes align the Public Safety Commission budget with the budgets of other City Commissions.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 140
199
CC 05-15-2025
199 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 8,136 $ 9,391 $ 9,440 $ 10,412
Employee Benefits $ 3,520 $ 4,309 $ 4,885 $ 4,303
Materials $ 4,846 $ - $ 6,143 $ 354
Contract Services $ 10,000 $ - $ 10,600 $ -
Cost Allocation $ 12,496 $ 16,299 $ 5,292 $ 4,848
Contingencies $ - $ - $ 209 $ -
Total Expenditures $ 38,998 $ 29,999 $ 36,569 $ 19,917
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 38,998 $ 29,999 $ 36,569 $ 19,917
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0 0.05
ASSIST TO THE CITY MNGR 0 0 0.05 0
EMERGENCY SERVICES COORDINATOR 0.05 0.05 0 0
Total 0.05 0.05 0.05 0.05
Due to the reorganization of duties and assignments within the City, staffing within this program was updated from the Assistant to the City Manager to the Assistant Director of the Parks and Recreation Department.

FY 2025-26 Proposed Budget Council and Commissions 141
200
CC 05-15-2025
200 of 655
Bicycle and Pedestrian Commission
Budget Unit 100-11-155
General Fund - Commissions - Bicycle and Pedestrian Commission Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 16,815
Fund Balance $ -
General Fund Costs $ 16,815
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The powers and functions of the Bicycle Pedestrian Commission shall be to review, monitor and suggest recommendations for City transportation maDers including, but not limited to, bicycle and pedestrian traffic, parking, education and recreation within Cupertino.

To fulfill their mission, the Commission may involve itself in the following activities:

1. To monitor and update the bicycle transportation plan and pedestrian transportation guidelines;

2. To suggest recommendations, review and monitor the City’s general plan transportation element;

3. To receive public input pertaining to bicycle and pedestrian transportation and infrastructure issues;

4. To make recommendations regarding the implementation of roadway and transportation improvements as it pertains to bicycle and pedestrian needs;

5. To make recommendations regarding the allocation of funds for capital expenditures relating to bicycle and pedestrian transportation;

6. Any other activity that may be deemed appropriate and necessary.

Proposed Budget
It is recommended that City Council approve a budget of $16,815 for the Bicycle and Pedestrian Commission program. This represents a decrease of $23,606 (-58.4%) from the FY 2024-25 Adopted Budget.

The decrease is due to reductions in staff allocated to this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 142
201
CC 05-15-2025
201 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 27,443 $ 26,893 $ 19,919 $ 5,139 Employee Benefits $ 9,640 $ 10,425 $ 9,654 $ 2,937
Materials $ - $ - $ 223 $ 230
Contract Services $ - $ - $ 616 $ 636
Cost Allocation $ 24,809 $ 23,773 $ 9,999 $ 7,873
Contingencies $ - $ - $ 10 $ -
Total Expenditures $ 61,892 $ 61,091 $ 40,421 $ 16,815
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 61,892 $ 61,092 $ 40,421 $ 16,815
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
ASSISTANT ENGINEER 0 0 0.10 0
TRANSPORTATION MANAGER 0.10 0.10 0 0
Total 0.15 0.15 0.15 0.05
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Council and Commissions 143
202
CC 05-15-2025
202 of 655
Parks and Recreation Commission
Budget Unit 100-11-160
General Fund - Commissions - Parks and Recreation Commission Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 25,230
Fund Balance $ -
General Fund Costs $ 25,230
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Parks and Recreation Commission is a five-member commission appointed by City Council and holds the following powers and functions:

To hold hearings on maDers pertaining to planning and development of parks, cultural activities, historical resources, recreation, community services (including, but not limited to schools and senior services), and capital expenditures related to community activities and facilities.

To conduct such other hearings as are necessary and in accordance with its own rules and regulations.

To report its decisions and recommendations in writing to the City Council.

To consider, formulate and propose programs, activities, resources, plans and development designed to provide for, regulate and direct the future growth and development of community activities, parks and a recreation system in order to secure to the City and its inhabitants better service.

To make investigations and reports for future acquisition of park sites.

To make, in its advisory capacity, any and all recommendations to the City Council relating to the above maDers, including the extension of the parks, recreation system and community activities to outlying areas of the City.

In cooperation with the Director of Recreation and Community Services, the Commission will consider, review, and evaluate parks, recreation programs, and community activities.

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

The Parks and Recreation Commission meets every month. A Parks and Recreation Department Recreation Manager serves as staff liaison.

Proposed Budget
It is recommended that City Council approve a budget of $25,230 for the Parks and Recreation Commission program. This represents a decrease of $1,251 (-4.7%) from the FY 2024-25 Adopted Budget.

This budget is consistent with the prior year Adopted Budget.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 144
203
CC 05-15-2025
203 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 14,225 $ 12,172 $ 13,129 $ 12,815 Employee Benefits $ 5,457 $ 5,440 $ 6,840 $ 6,198
Materials $ - $ - $ 11 $ 40
Cost Allocation $ 20,182 $ 21,167 $ 6,501 $ 6,177
Total Expenditures $ 39,864 $ 38,779 $ 26,481 $ 25,230
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 39,864 $ 38,779 $ 26,481 $ 25,230
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
DIRECTOR OF PARKS REC 0.05 0 0 0
RECREATION MANAGER 0 0.05 0.05 0.05
Total 0.10 0.10 0.10 0.10
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Council and Commissions 145
204
CC 05-15-2025
204 of 655
Teen Commission
Budget Unit 100-11-165
General Fund - Commissions - Teen Commission
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 14,908
Fund Balance $ -
General Fund Costs $ 14,908
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Teen Commission is a nine-member commission appointed by City Council and holds the following powers and functions:

Advise the City Council and staff on issues and projects important to youth.

Perform such other tasks as may be expressly requested of it by the City Council.

The Teen Commission meets every month. A Parks and Recreation Department Recreation Manager serves as staff liaison.

Proposed Budget
It is recommended that City Council approve a budget of $14,908 for the Teen Commission program. This represents a decrease of $663 (-4.3%) from the FY 2024-25 Adopted Budget.

This budget is consistent with the prior year Adopted Budget.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 6,882 $ 7,333 $ 7,590 $ 7,733
Employee Benefits $ 2,600 $ 2,441 $ 2,891 $ 2,499
Materials $ 828 $ 947 $ 285 $ 294
Cost Allocation $ 29,226 $ 30,189 $ 4,801 $ 4,382
Contingencies $ - $ - $ 4 $ -
Total Expenditures $ 39,536 $ 40,910 $ 15,571 $ 14,908
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 39,536 $ 40,910 $ 15,571 $ 14,908
Staffing
FY 2025-26 Proposed Budget Council and Commissions 146
205
CC 05-15-2025
205 of 655
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget RECREATION MANAGER 0.05 0.05 0.05 0.05
Total 0.05 0.05 0.05 0.05
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Council and Commissions 147
206
CC 05-15-2025
206 of 655
Planning Commission
Budget Unit 100-11-170
General Fund - Commissions - Planning Commission
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 124,073
Fund Balance $ -
General Fund Costs $ 124,073
% Funded by General Fund 100.0%
Total Staffing 0.3 FTE
Program Overview
The Planning Commission, a five-member citizen board appointed by the City Council, holds the following powers and functions:

Prepare, periodically review, and revise as necessary, the General Plan.

Implement the General Plan through actions including, but not limited to, the administration of specific plans and zoning, subdivisions, and sign ordinances.

Annually review the capital improvement program of the City and the local public works projects of other local agencies for their consistency with the General Plan (pursuant to Sections 65400 et seq. of the California Government Code).

Endeavor to promote public interest in, comment upon, and understanding of the General Plan, and regulation relating to it.

Consult and advise with public officials and agencies, public utility companies, civic, educational, professional, and other organizations and citizens generally concerning implementation of the General Plan.

Promote the coordination of local plans and programs with the plans and programs of other agencies.

Perform other functions as the City Council provides including conducting studies and preparing plans other than those required or authorized by state law.

Advise the City Council on land use and development policy related to the General Plan.

Implement the General Plan through review and administration of specific plans and related ordinances.

Review land use applications for conformance with the General Plan and ordinances; and Promote the coordination of local plans and programs with regional and other agencies.

The Planning Commission meets on the second and fourth Tuesdays of each month.

Proposed Budget
It is recommended that City Council approve a budget of $124,073 for the Planning Commission program. This represents an increase of $1,663 (1.4%) from the FY 2024-25 Adopted Budget.

This budget is consistent with the prior year Adopted Budget.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 148
207
CC 05-15-2025
207 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 33,992 $ 36,334 $ 36,723 $ 36,551 Employee Benefits $ 11,429 $ 14,893 $ 17,459 $ 15,607
Materials $ 17,600 $ 5,261 $ 4,900 $ 6,460
Cost Allocation $ 35,427 $ 40,713 $ 63,328 $ 65,455
Total Expenditures $ 98,448 $ 97,201 $ 122,410 $ 124,073 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 98,448 $ 97,201 $ 122,410 $ 124,073 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.20 0.20 0.20 0.20
DIRECTOR OF COMM DEVELOPMENT 0.06 0.06 0.06 0.06
Total 0.26 0.26 0.26 0.26
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Council and Commissions 149
208
CC 05-15-2025
208 of 655
Housing Commission
Budget Unit 100-11-175
General Fund - Commissions - Housing Commission
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 71,165
Fund Balance $ -
General Fund Costs $ 71,165
% Funded by General Fund 100.0%
Total Staffing 0.4 FTE
Program Overview
The Housing Commission, consisting of a representative from a Cupertino business and four community members, holds the following powers and functions:

Assist the Planning Commission and the City Council in developing housing policies and strategies for implementation of general plan housing element goals.

Recommend policies for implementation and monitoring of affordable housing projects.

Facilitate innovative approaches to affordable housing development and to generate ideas and interest in pursuing a variety of housing options.

When requested by the Director of Community Development or the City Council, to make recommendations to the Planning Commission and the City Council regarding affordable housing proposals in connection with applications for development.

Make recommendations regarding requests for money from the CDBG and Affordable Housing Funds.

Provide information about affordable housing.

Meet with neighborhood, community, regional and business groups as necessary to receive input and assist in generating affordable housing.

Help identify sources of funds to develop and build affordable housing; and Perform any other advisory functions authorized by the City Council.

The Housing Commission meets quarterly. The Senior Housing Coordinator serves as staff liaison.

Proposed Budget
It is recommended that City Council approve a budget of $71,165 for the Housing Commission program. This represents an increase of $10,168 (16.7%) from the FY 2024-25 Adopted Budget.

The increase is due to a reallocation of staff to better reflect actual time spent in this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 150
209
CC 05-15-2025
209 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 21,822 $ 4,314 $ 34,855 $ 41,556 Employee Benefits $ 8,037 $ 5,292 $ 15,597 $ 19,134
Materials $ - $ - $ 229 $ 229
Cost Allocation $ 23,497 $ 25,112 $ 10,316 $ 10,246
Total Expenditures $ 53,356 $ 34,718 $ 60,997 $ 71,165
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 53,356 $ 34,718 $ 60,997 $ 71,165
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
ASSISTANT HOUSING COORDINATOR 0 0 0 0.15
PLANNING MANAGER 0.10 0.10 0.00 0
SENIOR HOUSING COORDINATOR 0 0 0.20 0.15
Total 0.15 0.15 0.25 0.35
Staff time is being reallocated to better reflect the actual time spent in this program.

FY 2025-26 Proposed Budget Council and Commissions 151
210
CC 05-15-2025
210 of 655
Sustainability Commission
Budget Unit 100-11-180
General Fund - Commissions - Sustainability Commission
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 17,210
Fund Balance $ -
General Fund Costs $ 17,210
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The powers and functions of the Commission shall be to serve in an advisory capacity to the City Council to provide expertise and guidance on major policy and programmatic areas related to the environmental, economic and societal goals noted within Cupertino's CAP and General Plan Environmental Resources/Sustainability Element.

To fulfill their mission, the Commission may involve itself in the following activities:

1. Monitor and update the CAP based upon quantified metrics to measure and evaluate mitigated impacts and community benefits.

2. Suggest recommendations, review, and monitor the City's General Plan Environmental Resources/Sustainability Element and its intersections with the CAP.

3. Advise the City Council how to strategically accelerate Cupertino's progress towards sustainability and recommend priorities to promote continued regional leadership in sustainability.

4. Periodically review policies governing specific practices and programs, such as greenhouse gas emissions reduction, water conservation, renewable energy, energy efficiency, materials management, and urban forestry. Illustrative examples include creation of infrastructure for low emissions vehicles, installation of renewable energy or energy efficiency technologies, draVing of water conservation or waste reduction policies, delivery of habitat restoration and conservation programs, design and roll-out of pollution prevention campaigns, etc.

5. Make recommendations regarding the allocation of funds for infrastructure and technology improvements to elevate operational performance of City facilities, businesses, educational institutions and homes by reducing costs, improving public health, and serving community needs.

6. Accept public input on the subject areas noted above and advise the City Council on ways to drive community awareness, behavior change, education and participation in City programs modeled upon the field's best practices.

7. Review and make recommendations to the City Council on Federal, State and regional policies related to sustainability that have the potential to impact City Council's goals and policies.

8. Pursue any other activity or scope that may be deemed appropriate and necessary by the City Council.

Proposed Budget
It is recommended that City Council approve a budget of $17,210 for the Sustainability Commission program. This represents a decrease of $534 (-3.0%) from the FY 2024-25 Adopted Budget.

This budget is consistent with the prior year Adopted Budget.

Revenues and Expenditures
FY 2025-26 Proposed Budget Council and Commissions 152
211
CC 05-15-2025
211 of 655
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 18,882 $ (605) $ 6,588 $ 6,748
Employee Benefits $ 7,625 $ 3,872 $ 2,999 $ 2,708
Materials $ 2,107 $ - $ 1,340 $ 1,382
Cost Allocation $ 21,216 $ 21,687 $ 6,800 $ 6,372
Contingencies $ - $ - $ 17 $ -
Total Expenditures $ 49,830 $ 24,954 $ 17,744 $ 17,210
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 49,830 $ 24,954 $ 17,744 $ 17,210
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ENV. PROGRAMS SPECIALIST 0 0 0.05 0.05
MANAGEMENT ANALYST 0.10 0.10 0 0
SUSTAINABILITY MANAGER 0.05 0.05 0 0
Total 0.15 0.15 0.05 0.05
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Council and Commissions 153
212
CC 05-15-2025
212 of 655
Audit Committee
Budget Unit 100-11-190
General Fund - Commissions - Audit Committee
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 31,122
Fund Balance $ -
General Fund Costs $ 31,122
% Funded by General Fund 100.0%
Total Staffing 0.1 FTE
Program Overview
The Audit CommiDee, consisting of two City Council members and a minimum of two and a maximum of three at large members, holds the following powers and functions:

To review the annual audit report and management letter.

To recommend appointment of internal/external auditors.

To review the quarterly Treasurer's Investment report.

To recommend a budget format.

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

To review internal audit reports.

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

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

Proposed Budget
It is recommended that City Council approve a budget of $31,122 for the Audit CommiDee program. This represents a decrease of $449 (-1.4%) from the FY 2024-25 Adopted Budget.

This budget is consistent with the prior year Adopted Budget.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Council and Commissions 154
213
CC 05-15-2025
213 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 6,770 $ 15,370 $ 16,845 $ 17,506 Employee Benefits $ 1,981 $ 6,403 $ 7,777 $ 7,065
Cost Allocation $ 15,474 $ 17,282 $ 6,949 $ 6,551
Total Expenditures $ 24,225 $ 39,055 $ 31,571 $ 31,122
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 24,225 $ 39,054 $ 31,571 $ 31,122
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.05 0 0 0
FINANCE MANAGER 0.05 0.05 0.05 0.05
MANAGEMENT ANALYST 0 0.05 0.05 0
SENIOR MANAGEMENT ANALYST 0 0 0 0.05
Total 0.10 0.10 0.10 0.10
FY 2025-26 Proposed Budget Council and Commissions 155
214
CC 05-15-2025
214 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Council and Commissions 156
215
CC 05-15-2025
215 of 655
Administration
FY 2025-26 Proposed Budget Administration 157
216
CC 05-15-2025
216 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Administration 158
217
CC 05-15-2025
217 of 655
Department Overview
Budget Units
Budget Unit Program 2026 Proposed Budget
City Manager $ 2,614,772
100-12-120 City Manager $ 2,133,359
100-12-122 Sustainability $ -
100-12-126 Office of Communications $ 481,413
100-12-305 Multimedia $ -
100-12-307 Public Access Support $ -
100-12-632 Community Outreach and Neighborhood Watch $ - 100-12-633 Office of Emergency Management $ -
100-12-705 Economic Development $ -
City Clerk $ 952,277
100-13-130 City Clerk $ 910,716
100-13-132 Duplicating and Mail Services $ 41,561
100-13-133 Elections $ -
City Manager Discretionary $ 50,000
100-14-123 City Manager Contingency $ 50,000
City Attorney $ 1,524,970
100-15-141 City Attorney $ 1,524,970
Total $ 5,142,019
FY 2025-26 Proposed Budget Administration 159
218
CC 05-15-2025
218 of 655
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 2,432,652
Total Expenditures $ 5,142,019
Fund Balance $ -
General Fund Costs $ 2,709,367
% Funded by General Fund 52.7%
Total Staffing 16.2 FTE
Organization
Pamela Wu, City Manager
Floy Andrews, Contract City Attorney
FY 2025-26 Proposed Budget Administration 160
219
CC 05-15-2025
219 of 655
City Manager's Office
City Attorney's Office
Staffing levels in Administration are changing due to the transfer of an Economic Development Manager to the Community Development department and an Emergency Manager, Emergency Management Analyst, Community Relations Coordinator, and Citizen Corps Coordinator to the Parks & Recreation department. In addition, the City has currently contracted out the role of City Attorney. The City Attorney position listed in this organizational chart is the full-time benefitted position. This position is still funded as reflected in the City Attorney budget.

Notable Accomplishments
City Strategic Vision - In March 2025, the City Manager's Office facilitated a Priority SeDing Workshop, with Council to adopt a Strategic Vision for the City and to select top priorities for the upcoming two fiscal years. Council adopted staff's recommendation to establish new focus areas and modify the Council goals as part of the new Strategic Visions Framework.

This Framework will serve as a guide for all future City initiatives and resources allocations to better serve the community.

FY 25-27 City Work Program - In November 2024, staff conceptualized and presented an approach for Council to prioritize the City Work Program projects for the next two fiscal years. In March 2025, aVer several Council meetings, study sessions, and a Council workshop to evaluate potential projects, Council finalized 22 projects for the FY 2025-2027 City Work FY 2025-26 Proposed Budget Administration 161
220
CC 05-15-2025
220 of 655
Program.

ALPR - In partnership with SC County, the City adopted a policy and authorized an MOU to purchase and install ALPR cameras throughout the City.

Block Leaders - With grant support from CA Volunteers, staff expanded the Block Leader program to encourage recruitment and engage community members with ongoing preparedness classes, bi-monthly focus groups, and Block Party grants.

Commission Governance - As part of the City Work Program, and based on Council direction, staff streamlined the online Commission application to include questions and criteria that beDer identify applicants with Commission-specific subject maDer expertise. Application revisions were based on the research of advisory bodies in neighboring cities and towns within San Mateo and Santa Clara counties.

The Rise - The Silicon Valley Business Journal recognized The Rise project during the September 2024 Structures Awards. In October 2024, the City issued grading permits to the developer to prepare the <former Vallco> site for future work. The City is continuing to foster engagement with stakeholders and supporting this project on an ongoing basis.

Community Service Awards - The City Manager’s Office organized the first Cupertino Community Service Awards to recognize outstanding volunteer achievement in the Cupertino Community. The Community Service Awards functioned as a combination of prior years’ CREST and Commissioners’ Awards banquets. The new event format was well-received by the community and provided an opportunity to recognize outstanding community members, volunteers, and commissioners.

Streamlined Citywide Communications - City Manager’s Office offers comprehensive communications support and expertise to all departments within the City. In addition to continuing the citywide communication coordination groups, namely The Storytellers, In the spring of 2024, the team introduced the Communications Request Form on The Hub to streamline the process of submiDing requests and organize them efficiently and gather essential data, images, and other relevant information needed to fulfill them. The group meets monthly to discuss upcoming events, projects, and major initiatives.

This ensures uniformity in citywide communications. The communications team gathers information from all department representatives and offers feedback on outreach messaging and strategies.

Publications - Published three editions of The Scene and 17 editions of the Cupertino Connect newsletter.

Cupertino Business Outreach Program - Continued to engage with local businesses to facilitate dialogue between the private and public sectors, staff has gained a deeper understanding of Cupertino businesses' unique needs and connected them with relevant resources.

Project Coordination - City Manager’s Office formed this group to facilitate an inter-departmental dialogue to reduce red tape and coordinate on major policies, strategic initiatives, and significant projects in development, redevelopment, and business aDraction/retention/expansion that enhance the City’s revenue. This initiative has been an excellent method to promote collaboration and permit facilitation for projects such as Apple CC05, Jade Tea Garden, 76 Gas Station, and vacant office space at 10275 N. De Anza Blvd.

Retail The5 Prevention Outreach & Engagement - City Manager’s Office hosted a webinar in collaboration with the Santa Clara County Sheriff’s Office and Cupertino Chamber of Commerce to address retail theV, providing businesses with invaluable insights, actionable strategies, and best practices to strengthen store security.

Sale of City-owned property at 10301 Byrne Avenue - City Manager’s Office presented to Council and helped executed a sales agreement for the property at 10301 Byrne Avenue for $3,110,000.

Stevens Creek Trail Joint Use Agreement - Executed a new 25-year Joint Use Agreement with Santa Clara Valley Water District for ongoing access.

Women in Business Luncheon - In partnership with the Cupertino Chamber of Commerce, restarted and grew this quarterly luncheon to bolster retention, expansion, and attraction of businesses to Cupertino.

Business Resource Hub - Beta launched the Cupertino Business Resource Hub, a free, innovative platform designed to support local businesses by offering access to resources, technical training, expert guidance, and networking opportunities to help them thrive in a competitive market.

Small Business Workshop Series - Hosted in-person business workshops in collaboration with the Cupertino Chamber of Commerce and Access Small Business Development Center (SBDC). Training topics included business compliance, access to capital, strategies for attracting new customers, and artificial intelligence.

Green Business Workshop - Hosted an in-person workshop on green business rebates and incentives for local businesses and commercial property owners, in partnership with Silicon Valley Clean Energy, the County of Santa Clara, the Green Business Network Program, the Bay Area Regional Energy Network, and the Cupertino Chamber of Commerce.

Small Business Saturday - In 2024. developed a promotional video for Small Business Saturday (hDps://youtu.be/daAHISqWdPY?si=SR3p7BhND87JzlBB), highlighting local businesses in Cupertino to encourage community support and boost holiday shopping.

New Initiatives
th
FY 2025-26 Proposed Budget Administration 162
221
CC 05-15-2025
221 of 655
70 Anniversary - The Communications Division is the lead for the City’s upcoming Cupertino Community Service Awards which will combine the CREST Awards and Commissioner’s Dinner with a nod to the City’s 70 anniversary. In 2024, the Communications Division served as the lead for the inaugural Cupertino Community Service Awards.

Legislative Affairs - In 2025, Council has reestablished a legislative subcommiDee to further discuss state legislation. Staff will continue to work on monitoring and tracking state legislation in partnership with Council and the City Lobbyist.

Major Sports 2026 Regional Coordination - The City Manager’s Office will participate in a regional group to track updates, messaging efforts, and other relevant information related to the Superbowl and FIFA World Cup 2026.

Special Projects - Manage various Citywide special projects. th
th
FY 2025-26 Proposed Budget Administration 163
222
CC 05-15-2025
222 of 655
Performance Measures
City Clerk Division
Goal: Streamline information processing for Council, staff, and community members for compliance with State requirements and facilitate independent and transparent access to public information.

Benefit: All can fully participate in local government to achieve the community & organizational goals.

Performance Measure
FY 2023
July-June
FY 2024
July-June
FY 2025
July-Dec
Ongoing
Target
City Council minutes for meetings presented for Council approval by the following regular meeting 100% 100% 100% 100% Adopted City Council resolutions and ordinances
processed and scanned to Laserfiche within a week of
Clerk’s office receipt of final, signed document
85%/60% 100%/100% 100%/100% 100%
Public Record Act requests responded to by the Statutory deadline date 99% 99% 100% 100%
Office of Communications
Goal: Promote and increase interest and participation in City services, programs, initiatives, and projects while building community pride and positive identification with the City among its residents.

Benefit: Residents have access to timely, engaging, and important information.

Performance Measure
FY 2023
July-June
FY 2024
July-June
FY 2025
July-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 1,732 2,581 2,819 10% annual increase
Total Number of Gov Delivery Notices sent 586 556 302 10% annual increase
*Social media engagement metrics seen here are different due to Facebook's changes on its metrics, how they calculate it, and what they provide now. Previously, Facebook would count any action as engagement; now they only count likes/reactions, comments, link clicks, and shares.

FY 2025-26 Proposed Budget Administration 164
223
CC 05-15-2025
223 of 655
Workload Indicators
City Clerk Division
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-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 Office of Communications
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-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 FY 2025-26 Proposed Budget Administration 165
224
CC 05-15-2025
224 of 655
Proposed Budget
It is recommended that City Council approve a budget of $5,142,019 for the Administration department. This represents a decrease of $1,411,944 (-21.5%) from the FY 2024-25 Adopted Budget.

This decrease is primarily due to the reorganization of the City Manager's Office staffing. This decrease includes the transfer of 1 staff position in the Economic Development division, which has been moved under Community Development. This decrease also includes the transfer of 3.5 positions in the Emergency Management division, which have been moved under Parks and Recreation.

In addition, contingency dollars have been calculated off of department's FY 2025-2026 base budget materials and contracts and have been consolidated into materials.

For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets.

Citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference.

This budget includes a special project of $5,000 for Cupertino 70th Anniversary Celebration. Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories.

FY 2025-26 Proposed Budget Administration 166
225
CC 05-15-2025
225 of 655
Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

50.9%

29.7%

18.5%
City Manager
City Attorney
City Clerk
City Manager Discretionary
$6.51M $6.32M
$6.55M
$5.14M
2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Administration 167
226
CC 05-15-2025
226 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ 1,025,000 $ 56,953 $ - $ -
Charges for Services $ 1,485,073 $ 1,201,781 $ 2,825,126 $ 2,432,652 Miscellaneous Revenue $ 4,357 $ 202 $ - $ -
Total Revenues $ 2,514,430 $ 1,258,936 $ 2,825,126 $ 2,432,652 Expenditures
Employee Compensation $ 3,434,456 $ 3,173,960 $ 3,304,638 $ 2,818,752 Employee Benefits $ 1,179,676 $ 1,362,921 $ 1,540,703 $ 1,129,897 Materials $ 299,269 $ 182,617 $ 212,796 $ 250,929
Contract Services $ 980,642 $ 1,028,893 $ 786,970 $ 612,682 Cost Allocation $ 468,859 $ 339,655 $ 546,360 $ 274,759 Special Projects $ 148,484 $ 224,741 $ 100,000 $ 5,000
Contingencies $ - $ 5,732 $ 62,496 $ 50,000
Total Expenditures $ 6,511,386 $ 6,318,519 $ 6,553,963 $ 5,142,019 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 3,996,953 $ 5,059,586 $ 3,728,837 $ 2,709,367 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Administration 168
227
CC 05-15-2025
227 of 655
Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 1.00 1.00 2.00 2.00
ASSISTANT CITY MANAGER 2.00 1.00 1.00 1.00
ASSIST TO THE CITY MNGR 0 0 0.95 0
CITY ATTORNEY 1.00 1.00 1.00 1.00
CITY CLERK 1.00 1.00 1.00 1.00
CITY MANAGER 1.00 1.00 1.00 1.00
COMMS AND MARKETING COORDINATOR 1.00 0 0.85 0.85
COMMUNITY OUTREACH SPECIALIST 0.90 0.90 0.90 0.90
DEPUTY CITY CLERK 1.00 1.00 1.00 1.00
DEPUTY CITY MANAGER 1.00 1.00 1.00 1.00
ECONOMIC DEVELOPMENT MANAGER 1.00 1.00 1.00 0
EMERGENCY SERVICES COORDINATOR 1.95 1.95 1.00 0
ENVIRONMENTAL PROGRAMS ASSISTANT 0.35 0.35 0 0
EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50
LEGAL SERVICES MANAGER 1.00 1.00 1.00 0
MANAGEMENT ANALYST 3.70 2.70 1.00 1.00
MULTIMEDIA COMMUNICATIONS SPEC 1.50 0 0 0
PUBLIC INFORMATION OFFICER 0.85 0.85 0 0
RECEPTIONIST 0 0 0 1.00
SENIOR ASSISTANT CITY ATTORNEY 1.00 1.00 1.00 1.00
SENIOR MANAGEMENT ANALYST 0 1.00 1.00 1.00
SPECIAL PROJECT EXECUTIVE 0 1.00 0 0
SR OFFICE ASSISTANT 1.80 1.80 1.80 1.90
SUSTAINABILITY MANAGER 0.75 0.75 0 0
Total 24.30 21.80 19.00 16.15
FY 2025-26 Proposed Budget Administration 169
228
CC 05-15-2025
228 of 655
City Manager
Budget Unit 100-12-120
General Fund - City Manager - City Manager
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,461,511
Total Expenditures $ 2,133,359
Fund Balance $ -
General Fund Costs $ 671,848
% Funded by General Fund 31.5%
Total Staffing 7.2 FTE
Program Overview
The City Manager is responsible to the City Council for the effective and efficient operation of the City. Under the direction of the City Council as a whole, the City Manager carries out the City’s goals and objectives.

Service Objectives
Facilitate the adoption and accomplishment of the City Work Program.

Manage City operations.

Ensure all laws and ordinances of the City are duly enforced and that all franchises, permits, licenses, and privileges granted by the City are faithfully performed and observed.

Advise the City Council on policy, and the health and needs of the City.

Research and respond to concerns regarding City operations.

Prioritize engagement and transparency.

Prepare reports and initiate recommendations as may be desirable or as requested by the City Council.

Ensure that the City’s policies and procedures provide a foundation for a secure financial position.

Monitor all state and federal legislative activity and track and identify important legislation impacting Cupertino.

Proposed Budget
It is recommended that City Council approve a budget of $2,133,359 for the City Manager program. This represents a decrease of $44,262 (-2.0%) from the FY 2024-25 Adopted Budget.

There are several shiVs in this budget that result in an overall decrease. Primarily, this program budget does not have any new Special Projects for FY25-26.

This is offset by increases in salaries due to the request to add a new position, materials due to funds for citywide memberships and dues that were previously in the City Council budget being consolidated in this program budget to beDer reflect the use of those dollars. Cost Allocation charges have also increased.

This program is also requesting 1.0 FT Receptionist for FY25-26. This position will ensure the City Hall front desk is adequately staffed providing consistent support for residents.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Administration 170
229
CC 05-15-2025
229 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 646,348 $ 653,459 $ 1,552,614 $ 1,461,511 Total Revenues $ 646,348 $ 653,459 $ 1,552,614 $ 1,461,511 Expenditures
Employee Compensation $ 974,503 $ 1,304,537 $ 1,280,208 $ 1,303,448 Employee Benefits $ 285,760 $ 555,668 $ 569,757 $ 517,857 Materials $ 53,361 $ 38,198 $ 45,689 $ 109,641
Contract Services $ 113,975 $ 215,602 $ 78,008 $ 81,920 Cost Allocation $ - $ - $ 102,413 $ 120,493
Special Projects $ - $ 38,415 $ 100,000 $ -
Contingencies $ - $ - $ 1,546 $ -
Total Expenditures $ 1,427,599 $ 2,152,420 $ 2,177,621 $ 2,133,359 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 781,251 $ 1,498,960 $ 625,007 $ 671,848 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0 0 1.00 1.00
ASSISTANT CITY MANAGER 2.00 1.00 1.00 1.00
CITY MANAGER 1.00 1.00 1.00 1.00
DEPUTY CITY MANAGER 1.00 1.00 1.00 1.00
EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50
MANAGEMENT ANALYST 2.00 1.00 0 0
RECEPTIONIST 0 0 0 1.00
SENIOR MANAGEMENT ANALYST 0 1.00 1.00 1.00
SPECIAL PROJECT EXECUTIVE 0 1.00 0 0
SR OFFICE ASSISTANT 0.40 0.40 1.10 0.70
Total 6.90 6.90 6.60 7.20
Staff is requesting a new position of receptionist in this budget unit.

FY 2025-26 Proposed Budget Administration 171
230
CC 05-15-2025
230 of 655
Sustainability
Budget Unit 100-12-122
General Fund - City Manager - Sustainability
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.0 FTE
Program Overview
In FY 2023-2024, this program was moved to Public Works. A complete discussion of the program can be found under Budget Unit 100-81-122. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed.

Proposed Budget
There is no budget requested for this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Miscellaneous Revenue $ 14,822 $ - $ - $ -
Total Revenues $ 14,822 $ - $ - $ -
Expenditures
Employee Compensation $ 272,016 $ - $ - $ -
Employee Benefits $ 102,200 $ - $ - $ -
Materials $ 16,113 $ - $ - $ -
Contract Services $ 67,997 $ - $ - $ -
Cost Allocation $ 182,388 $ - $ - $ -
Special Projects $ 106,200 $ - $ - $ -
Total Expenditures $ 746,914 $ - $ - $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 732,091 $ - $ - $ -
Staffing
FY 2025-26 Proposed Budget Administration 172
231
CC 05-15-2025
231 of 655
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ENVIRONMENTAL PROGRAMS ASSISTANT 0.35 0.35 0 0
MANAGEMENT ANALYST 0.70 0.70 0 0
SUSTAINABILITY MANAGER 0.75 0.75 0 0
Total 1.80 1.80 0 0
FY 2025-26 Proposed Budget Administration 173
232
CC 05-15-2025
232 of 655
Office of Communications
Budget Unit 100-12-126
General Fund - City Manager - Office of Communications
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 335,733
Total Expenditures $ 481,413
Fund Balance $ -
General Fund Costs $ 145,680
% Funded by General Fund 30.3%
Total Staffing 2.0 FTE
Program Overview
The Communications Division is responsible for community outreach to ensure that residents have access to timely, useful, and important information. The Communications Division oversees and maintains many of the City’s lines of communication with residents, including the City’s website, social media accounts, bimonthly newsleDer, quarterly newsleDer, videos, reels, digital marketing, graphics, and press releases. The Division supports city-wide communications and acts as a liaison between various City departments and the community, and provides guidance on communicating information about projects and events.

Service Objectives
Serve as the communications link between the City of Cupertino and residents Ensure that the community has easy access to important, useful, and timely information through various forms of media including print, online, and video
Build community pride and positive identification with the City among residents Increase interest and participation in City services, projects, and activities Promote City Council and departmental goals, initiatives, programs, and services Assist in creating better internal and external communication Enhance the City’s relationship with the news media
Proposed Budget
It is recommended that City Council approve a budget of $481,413 for the Office of Communications program. This represents an increase of $64,634 (15.5%) from the FY 2024-25 Adopted Budget.

The increase is primarily due to a request to add an ongoing Part-Time Communications & Marketing Coordinator. This position will ensure that large City events are successful, and the community stays informed and engaged.

Additional budget request in this program includes a special project request to fund the celebration of the City's 70th anniversary.

Special Projects
The following table shows the special projects for the fiscal year.

FY 2025-26 Proposed Budget Administration 174
233
CC 05-15-2025
233 of 655
Special Project Appropriation Revenue Funding Source Description Cupertino 70th
Anniversary Celebration $5,000 $5,000 General Fund
Celebration to
Commemorate
Cupertino's 70th
Anniversary
Total $5,000 $5,000
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ - $ - $ 545,188 $ 335,733
Total Revenues $ - $ - $ 545,188 $ 335,733
Expenditures
Employee Compensation $ 247,454 $ 202,101 $ 228,455 $ 292,233 Employee Benefits $ 90,120 $ 115,303 $ 124,460 $ 115,623 Materials $ 138,360 $ 46,977 $ 17,152 $ 22,637
Contract Services $ 133,287 $ 53,737 $ 14,110 $ 10,320
Cost Allocation $ - $ - $ 32,211 $ 35,600
Special Projects $ - $ - $ - $ 5,000
Contingencies $ - $ - $ 391 $ -
Total Expenditures $ 609,221 $ 418,118 $ 416,779 $ 481,413 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 609,221 $ 418,119 $ (128,409) $ 145,680 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget COMMS AND MARKETING COORDINATOR 1.00 0 0.85 0.85
COMMUNITY OUTREACH SPECIALIST 0.90 0.90 0.90 0.90
PUBLIC INFORMATION OFFICER 0.85 0.85 0 0
SR OFFICE ASSISTANT 0.90 0.90 0.20 0.20
Total 3.65 2.65 1.95 1.95
FY 2025-26 Proposed Budget Administration 175
234
CC 05-15-2025
234 of 655
Multimedia
Budget Unit 100-12-305
General Fund - City Manager - Multimedia
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.0 FTE
Program Overview
In FY 2023-24, this program was moved to Innovation & Technology. A complete discussion of the program can be found under Budget Unit 100-31-305. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed.

Proposed Budget
There is no budget requested for this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 354,821 $ 167,188 $ - $ -
Total Revenues $ 354,821 $ 167,188 $ - $ -
Expenditures
Employee Compensation $ 312,438 $ - $ - $ -
Employee Benefits $ 139,867 $ - $ - $ -
Materials $ 22 $ - $ - $ -
Contract Services $ 17,236 $ - $ - $ -
Special Projects $ 9,549 $ - $ - $ -
Total Expenditures $ 479,112 $ - $ - $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 124,290 $ (167,188) $ - $ -
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Administration 176
235
CC 05-15-2025
235 of 655
Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget MULTIMEDIA COMMUNICATIONS SPEC 1.50 0 0 0
Total 1.50 0 0 0
FY 2025-26 Proposed Budget Administration 177
236
CC 05-15-2025
236 of 655
Public Access Support
Budget Unit 100-12-307
General Fund - City Manager - Public Access Support
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
In FY 2023-2024, this program was moved to Innovation & Technology. A complete discussion of the program can be found under Budget Unit 100-31-305. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed.

Proposed Budget
There is no budget requested for this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ 73,306 $ 9,450 $ - $ -
Cost Allocation $ 2,251 $ 2,169 $ - $ -
Total Expenditures $ 75,557 $ 11,619 $ - $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 75,557 $ 11,619 $ - $ -
Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Administration 178
237
CC 05-15-2025
237 of 655
Community Outreach and Neighborhood Watch
Budget Unit 100-12-632
General Fund - City Manager - Community Outreach and Neighborhood Watch Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.0 FTE
Program Overview
In FY 2024-2025, this program was transferred to Parks & Recreation. A complete discussion of the program can be found under Budget Unit 100-65-632. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed.

Proposed Budget
There is no budget requested for this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ - $ 56,953 $ - $ -
Total Revenues $ - $ 56,953 $ - $ -
Expenditures
Employee Compensation $ 100,034 $ 103,733 $ 109,783 $ - Employee Benefits $ 40,723 $ 44,700 $ 52,924 $ -
Materials $ 8,047 $ 5,001 $ 8,290 $ -
Cost Allocation $ 58,538 $ 78,117 $ 53,648 $ -
Special Projects $ - $ 7,623 $ - $ -
Contingencies $ - $ - $ 104 $ -
Total Expenditures $ 207,342 $ 239,174 $ 224,749 $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 207,342 $ 182,222 $ 224,749 $ -
Staffing
FY 2025-26 Proposed Budget Administration 179
238
CC 05-15-2025
238 of 655
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget EMERGENCY SERVICES COORDINATOR 1.00 1.00 1.00 0
Total 1.00 1.00 1.00 0
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Administration 180
239
CC 05-15-2025
239 of 655
Office of Emergency Management
Budget Unit 100-12-633
General Fund - City Manager - Office of Emergency Management Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.0 FTE
Program Overview
In FY 2024-2025, this program was transferred to Parks & Recreation. A complete discussion of the program can be found under Budget Unit 100-65-633. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed.

Proposed Budget
There is no budget requested for this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ 1,025,000 $ - $ - $ -
Charges for Services $ - $ 15,629 $ 152,678 $ -
Total Revenues $ 1,025,000 $ 15,629 $ 152,678 $ -
Expenditures
Employee Compensation $ 317,068 $ 324,386 $ 356,968 $ - Employee Benefits $ 130,230 $ 148,831 $ 176,079 $ -
Materials $ 13,394 $ 17,096 $ 23,997 $ -
Contract Services $ 156 $ - $ 2,120 $ -
Cost Allocation $ 177,604 $ 205,936 $ 86,139 $ -
Special Projects $ 18,677 $ 4,129 $ - $ -
Contingencies $ - $ - $ 326 $ -
Total Expenditures $ 657,129 $ 700,378 $ 645,629 $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ (367,872) $ 684,749 $ 492,951 $ -
FY 2025-26 Proposed Budget Administration 181
240
CC 05-15-2025
240 of 655
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSIST TO THE CITY MNGR 0 0 0.95 0
EMERGENCY SERVICES COORDINATOR 0.95 0.95 0 0
MANAGEMENT ANALYST 1.00 1.00 1.00 0
Total 1.95 1.95 1.95 0
A transfer of 3.5 positions in the Emergency Management division have been moved under Parks and Recreation.

FY 2025-26 Proposed Budget Administration 182
241
CC 05-15-2025
241 of 655
Economic Development
Budget Unit 100-12-705
General Fund - City Manager - Economic Development
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.0 FTE
Program Overview
In FY 2024-2025, this program was transferred to Community Development. A complete discussion of the program can be found under Budget Unit 100-71-705. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed.

Proposed Budget
There is no budget requested for this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 161,796 $ 143,794 $ 194,086 $ - Employee Benefits $ 52,073 $ 69,813 $ 99,396 $ -
Materials $ 19,101 $ 9,689 $ 17,648 $ -
Contract Services $ 15,449 $ 28,549 $ 56,200 $ -
Cost Allocation $ 41,781 $ 49,578 $ 172,822 $ -
Special Projects $ 14,058 $ 174,574 $ - $ -
Contingencies $ - $ - $ 923 $ -
Total Expenditures $ 304,258 $ 475,997 $ 541,075 $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 304,258 $ 475,997 $ 541,075 $ -
Staffing
FY 2025-26 Proposed Budget Administration 183
242
CC 05-15-2025
242 of 655
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ECONOMIC DEVELOPMENT MANAGER 1.00 1.00 1.00 0
Total 1.00 1.00 1.00 0
A transfer of 1 staff position in the Economic Development division has been moved under Community Development.

FY 2025-26 Proposed Budget Administration 184
243
CC 05-15-2025
243 of 655
City Clerk
Budget Unit 100-13-130
General Fund - City Clerk - City Clerk
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 222,387
Total Expenditures $ 910,716
Fund Balance $ -
General Fund Costs $ 688,329
% Funded by General Fund 75.6%
Total Staffing 4.0 FTE
Program Overview
The City Clerk’s office responsibilities include administrative duties associated with the City Council’s agenda and actions, publishing legal notices, posting notice of all commission vacancies, processing codification of City’s Municipal Code, records management, compliance with Public Records Act requests, managing official elections, and providing partial mail service for all City Departments.

Service Objectives
Ensure compliance with the Brown Act open meetings requirements, Maddy Act Commission vacancy requirements and the Public Records Act, to accurately process documents and maintain a records management system that facilitates timely access to information, including digital access to City records.

Provide complete, accurate and timely information to the public, staff and City Council.

Respond to internal routing requests within two working days; respond to internal requests requiring archival research within five working days.

Respond to Public Record Act requests within the time specified by State law.

Provide a digital City Council packet to members of the City Council and staff.

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

Proposed Budget
It is recommended that City Council approve a budget of $910,716 for the City Clerk program. This represents an increase of $81,982 (9.9%) from the FY 2024-25 Adopted Budget.

The increase is primarily due to the reallocation of staffing to this budget unit.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Administration 185
244
CC 05-15-2025
244 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 121,651 $ 87,435 $ 201,273 $ 222,387 Miscellaneous Revenue $ - $ 202 $ - $ -
Total Revenues $ 121,651 $ 87,637 $ 201,273 $ 222,387
Expenditures
Employee Compensation $ 388,186 $ 430,610 $ 475,265 $ 519,944 Employee Benefits $ 121,637 $ 173,521 $ 222,740 $ 225,433 Materials $ 25,946 $ 38,693 $ 40,578 $ 60,581
Contract Services $ 54,812 $ 43,387 $ 39,594 $ 40,861
Cost Allocation $ - $ - $ 49,555 $ 63,897
Contingencies $ - $ - $ 1,002 $ -
Total Expenditures $ 590,581 $ 686,211 $ 828,734 $ 910,716 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 468,930 $ 598,575 $ 627,461 $ 688,329 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 1.00 1.00 1.00 1.00
CITY CLERK 1.00 1.00 1.00 1.00
DEPUTY CITY CLERK 1.00 1.00 1.00 1.00
SR OFFICE ASSISTANT 0.50 0.50 0.50 1.00
Total 3.50 3.50 3.50 4.00
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Administration 186
245
CC 05-15-2025
245 of 655
Duplicating and Mail Services
Budget Unit 100-13-132
General Fund - City Clerk - Duplicating and Mail Services Budget at a Glance
2026 Proposed Budget
Total Revenues $ 30,805
Total Expenditures $ 41,561
Fund Balance $ -
General Fund Costs $ 10,756
% Funded by General Fund 25.9%
Total Staffing FTE
Program Overview
The Duplicating and Mail budget provides paper, envelope, and postage supplies Citywide, and is responsible for the maintenance costs of the postage and folder-inserter machines.

Reduction in benefits is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings.

Service Objectives
Supply paper, envelopes, and postage Citywide and maintain postage and folder-inserter machines.

Proposed Budget
It is recommended that City Council approve a budget of $41,561 for the Duplicating and Mail Services program. This represents a decrease of $1,470 (-3.4%) from the FY 2024-25 Adopted Budget.

This budget is relatively unchanged from the prior fiscal year.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Administration 187
246
CC 05-15-2025
246 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ - $ - $ 28,829 $ 30,805
Total Revenues $ - $ - $ 28,829 $ 30,805
Expenditures
Materials $ 20,557 $ 11,377 $ 31,500 $ 32,508
Contract Services $ 922 $ 10,237 $ 11,000 $ 9,053
Cost Allocation $ 3,674 $ 3,375 $ - $ -
Contingencies $ - $ - $ 531 $ -
Total Expenditures $ 25,153 $ 24,989 $ 43,031 $ 41,561
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 25,153 $ 24,989 $ 14,202 $ 10,756
Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Administration 188
247
CC 05-15-2025
247 of 655
Elections
Budget Unit 100-13-133
General Fund - City Clerk - Elections
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
The City Clerk’s office administers the legislative process including management of local elections and filings of Fair Political Practices Commission documents.

Service Objectives
Administer elections and Fair Political Practices Commission filings in compliance with State law.

Conduct a local election in even-numbered years and ballot measure elections as necessary, in compliance with the California Elections Code.

Facilitate timely filing of required and voluntary documentation from candidates and election commiDees, including Nomination Papers, Candidate Statements of Qualification, Campaign Financial Disclosure Statements, and Statements of Economic Interest.

Make election-related information available to the public and news media in a timely manner.

Proposed Budget
There is no budget requested for this program.

This decrease is due to the election cycle.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Administration 189
248
CC 05-15-2025
248 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Miscellaneous Revenue $ (10,465) $ - $ - $ -
Total Revenues $ (10,465) $ - $ - $ -
Expenditures
Materials $ (11,726) $ 577 $ 10,345 $ -
Contract Services $ 120,921 $ - $ 130,000 $ -
Cost Allocation $ 2,623 $ 480 $ 17 $ -
Contingencies $ - $ - $ 1,754 $ -
Total Expenditures $ 111,818 $ 1,057 $ 142,116 $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 122,283 $ 1,057 $ 142,116 $ -
Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Administration 190
249
CC 05-15-2025
249 of 655
City Manager Contingency
Budget Unit 100-14-123
General Fund - City Manager Discretionary - City Manager Contingency Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 50,000
Fund Balance $ -
General Fund Costs $ 50,000
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
The City Manager Contingency program is designed to address unforeseen citywide expenses that may arise during the year. To provide a cushion for any unexpected expenses, a contingencies expenditure category was added to each program in FY 2013-14.

This category was established to cover any unforeseen expenses that may arise during the year. However, in FY 2020-21, the program contingencies were reduced from 5% of budgeted materials and contract services to 2.5%.

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

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

There were no expenditures from the City Manager's contingency in Fiscal Year 2023. Fiscal Year 2024 saw an expenditure of $5,321.11, with the primary uses being employee appreciation events and quarterly town hall breakfasts. In Fiscal Year 2025 to date, the contingency fund was utilized for $13,616.85, with key expenses related to employee appreciation events and homeless encampment clean-up. The program contingency budget may be used by departments to cover unanticipated expenses at their discretion. On the other hand, the City Manager Contingency requires the approval of the City Manager before it can be used. Any usage of the City Manager Contingency is reported by staff to the City Council as part of the quarterly financial report. This reporting ensures transparency and accountability in the use of contingency funds.

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

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Administration 191
250
CC 05-15-2025
250 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ 2,633 $ - $ - $ -
Contingencies $ - $ 5,732 $ 50,000 $ 50,000
Total Expenditures $ 2,633 $ 5,732 $ 50,000 $ 50,000
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 2,633 $ 5,732 $ 50,000 $ 50,000
Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Administration 192
251
CC 05-15-2025
251 of 655
City Attorney
Budget Unit 100-15-141
General Fund - City Attorney - City Attorney
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 382,216
Total Expenditures $ 1,524,970
Fund Balance $ -
General Fund Costs $ 1,142,754
% Funded by General Fund 74.9%
Total Staffing 3.0 FTE
Program Overview
The City ADorney is appointed by the City Council to manage the legal affairs of the City, including the operation of the City ADorney’s Office. The City ADorney’s Office provides all legal services that are needed to support the City Council, City Commissions and Committees, City Manager, department directors, and City staff.

Service Objectives
The mission of the City ADorney’s Office is to protect and defend the City by all legal and ethical means and to provide the municipal corporation with high-quality legal service and advice. These legal services include the following:

Prosecute and defend the City in any legal action such as civil maDers involving personal injury or property damage, code enforcement, or any administrative action arising out of City business.

Manage all property, auto and liability claims filed against or on behalf of the City including investigation and disposition.

Attend City Council, Planning Commission, and other public meetings as requested.

Prepare and review proposed legislation including ordinances and resolutions.

Draft and/or review contracts, agreements, and other legal documents.

Conduct legal research and analysis, and prepare legal memoranda.

Provide legal support for special projects.

Proposed Budget
It is recommended that City Council approve a budget of $1,524,970 for the City ADorney program. This represents an increase of $40,741 (2.7%) from the FY 2024-25 Adopted Budget.

The increase is due to increases in salary costs, materials and contracts offset by a decrease in benefits costs. Staff costs have increased due to negotiated increases to salary and benefits for the City ADorney as well as reclassification of the Legal Services Manager that occurred last year to align the position with its current duties and responsibilities.

The City is currently contracting out City ADorney services but has not defunded the existing full time benefiDed City ADorney position, thus salary and benefits for that position remain in the budget to pay contract City Attorney services.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.FY 2025-26 Proposed Budget Administration 193 252
CC 05-15-2025
252 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 362,253 $ 278,070 $ 344,544 $ 382,216 Total Revenues $ 362,253 $ 278,070 $ 344,544 $ 382,216
Expenditures
Employee Compensation $ 660,961 $ 664,799 $ 659,873 $ 703,127 Employee Benefits $ 217,066 $ 255,085 $ 295,347 $ 270,984 Materials $ 16,094 $ 15,009 $ 17,597 $ 25,562
Contract Services $ 379,948 $ 667,931 $ 455,938 $ 470,528 Cost Allocation $ - $ - $ 49,555 $ 54,769
Contingencies $ - $ - $ 5,919 $ -
Total Expenditures $ 1,274,069 $ 1,602,824 $ 1,484,229 $ 1,524,970 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 911,816 $ 1,324,755 $ 1,139,685 $ 1,142,754 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget CITY ATTORNEY 1.00 1.00 1.00 1.00
LEGAL SERVICES MANAGER 1.00 1.00 1.00 0
MANAGEMENT ANALYST 0 0 0 1.00
SENIOR ASSISTANT CITY ATTORNEY 1.00 1.00 1.00 1.00
Total 3.00 3.00 3.00 3.00
There are no changes to the current levels of staffing. An interim City Attorney was outsourced in FY 2025.

FY 2025-26 Proposed Budget Administration 194
253
CC 05-15-2025
253 of 655
Law Enforcement
FY 2025-26 Proposed Budget Law Enforcement 195
254
CC 05-15-2025
254 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Law Enforcement 196
255
CC 05-15-2025
255 of 655
Department Overview
Budget Units
Budget Unit Program 2026 Proposed Budget
Law Enforcement $ 19,542,688
100-20-200 Law Enforcement $ 19,542,688
100-20-201 Interoperability Project $ -
Total $ 19,542,688
FY 2025-26 Proposed Budget Law Enforcement 197
256
CC 05-15-2025
256 of 655
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,939,512
Total Expenditures $ 19,542,688
Fund Balance $ -
General Fund Costs $ 17,603,176
% Funded by General Fund 90.1%
Total Staffing FTE
Organization
Captain Neil Valenzuela, Office of the Sheriff
FY 2025-26 Proposed Budget Law Enforcement 198
257
CC 05-15-2025
257 of 655
Performance Measures
Goal: Maintain a safe environment to live, work, learn and play.

Benefit: All members of the community are safe, informed, empowered and supported.

Performance Measure
FY 2023
July-June
FY 2024
July-June
FY 2025
July-Dec
Ongoing
Target
Response time for emergency calls
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%
FY 2025-26 Proposed Budget Law Enforcement 199
258
CC 05-15-2025
258 of 655
Workload Indicators
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-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
Proposed Budget
It is recommended that City Council approve a budget of $19,542,688 for the Law Enforcement department. This represents an increase of $893,882 (4.8%) from the FY 2024-25 Adopted Budget.

The increase is primarily due to the annual negotiated increase in the law enforcement contract and an ongoing request to fund maintenance costs associated with the license plate readers.

For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets.

FY 2025-26 Proposed Budget Law Enforcement 200
259
CC 05-15-2025
259 of 655
Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year. 100.0%
Law Enforcement
$15.3M
$16.2M
$18.6M
$19.5M
2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Law Enforcement 201
260
CC 05-15-2025
260 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ 165,271 $ 186,159 $ 161,094 $ 166,249 Charges for Services $ 277,277 $ 304,442 $ 402,500 $ 371,200 Fines and Forfeitures $ 168,859 $ 155,102 $ 180,000 $ 185,760 Miscellaneous Revenue $ 948,721 $ 1,006,552 $ 1,046,814 $ 1,216,303 Total Revenues $ 1,560,128 $ 1,652,255 $ 1,790,408 $ 1,939,512 Expenditures
Materials $ 404 $ 457 $ 424 $ 450
Contract Services $ 15,122,638 $ 16,059,209 $ 18,285,280 $ 19,353,570 Cost Allocation $ 153,891 $ 144,684 $ 363,102 $ 188,668 Total Expenditures $ 15,276,933 $ 16,204,350 $ 18,648,806 $ 19,542,688 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 13,716,805 $ 14,552,096 $ 16,858,398 $ 17,603,176 Staffing
There is no staffing associated with this department.

FY 2025-26 Proposed Budget Law Enforcement 202
261
CC 05-15-2025
261 of 655
Law Enforcement
Budget Unit 100-20-200
General Fund - Law Enforcement - Law Enforcement
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,939,512
Total Expenditures $ 19,542,688
Fund Balance $ -
General Fund Costs $ 17,603,176
% Funded by General Fund 90.1%
Total Staffing FTE
Program Overview
The Law Enforcement program provides law enforcement, emergency communications, and School Resource Officers. Law enforcement services are provided by the Santa Clara County Sheriff’s Office, while communications services are provided by the Santa Clara County General Services Administration. Other services include general law enforcement (patrol), traffic enforcement and investigation, detective services, and additional resources from specialized units.

The State allocates the Citizens Option for Public Safety (COPS) grant to cities and counties for front-line law enforcement purposes. Funding is allocated proportionately based on population size with a minimum allocation of $100,000 per jurisdiction.

This grant will be used to partially offset the cost of a second School Resource Officer that was added in the FY 2016-17 school year. Furthermore, the City receives an annual donation from Apple for enhanced law enforcement services (two additional deputies) available to the entire community. The donation is $1,109,623 for FY 2025-26.

Service Objectives
Protect life and property through innovative and progressive policing methods.

Respond to Priority 1 emergency situations within an average of fewer than five minutes.

Enforce the vehicle code with the goal of increasing traffic safety.

Divert first time/minor youth offenders from the juvenile justice system.

Provide daily on-site interaction with our youth.

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

Proposed Budget
It is recommended that City Council approve a budget of $19,542,688 for the Law Enforcement program. This represents an increase of $893,882 (4.8%) from the FY 2024-25 Adopted Budget.

The increase is due to the increased in the Sheriff's contract and increases supplemental law enforcement service that are fully offset by revenues. Additionally, a request to fund ongoing costs of the maintenance and operation of fiVeen (15) Automated License Plate Readers (ALPRs) throughout the City, is included, which was approved by Council in October 2024.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Law Enforcement 203
262
CC 05-15-2025
262 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ 165,271 $ 186,159 $ 161,094 $ 166,249 Charges for Services $ 277,277 $ 304,442 $ 402,500 $ 371,200 Fines and Forfeitures $ 168,859 $ 155,102 $ 180,000 $ 185,760 Miscellaneous Revenue $ 948,721 $ 1,006,552 $ 1,046,814 $ 1,216,303 Total Revenues $ 1,560,128 $ 1,652,255 $ 1,790,408 $ 1,939,512 Expenditures
Materials $ 404 $ 457 $ 424 $ 450
Contract Services $ 15,122,638 $ 16,059,209 $ 18,285,280 $ 19,353,570 Cost Allocation $ 153,007 $ 144,684 $ 363,102 $ 188,668 Total Expenditures $ 15,276,049 $ 16,204,350 $ 18,648,806 $ 19,542,688 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 13,715,921 $ 14,552,096 $ 16,858,398 $ 17,603,176 Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Law Enforcement 204
263
CC 05-15-2025
263 of 655
Interoperability Project
Budget Unit 100-20-201
General Fund - Law Enforcement - Interoperability Project Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
The Silicon Valley Regional Interoperability Authority (SVRIA) was formed under the Joint Exercise of Powers Act (JPA) to provide interoperable communications solutions to its members. The SVRIA represents the interests of all public safety agencies in Santa Clara County through its members. It services the Santa Clara Operational Area which includes the County of Santa Clara, its fiVeen cities and towns, and all special districts. This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed.

Service Objectives
SVRIA exists to identify, coordinate, and implement communications interoperability solutions to its member agencies. The purpose of these projects is to seamlessly integrate voice and data communications between law enforcement, the fire and rescue service, emergency medical services, and emergency management for routine operations, critical incidents, and disaster response and recovery.

Proposed Budget
There is no budget requested for this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Cost Allocation $ 884 $ - $ - $ -
Total Expenditures $ 884 $ - $ - $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 884 $ - $ - $ -
Staffing
FY 2025-26 Proposed Budget Law Enforcement 205
264
CC 05-15-2025
264 of 655
Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Law Enforcement 206
265
CC 05-15-2025
265 of 655
Innovation and Technology
FY 2025-26 Proposed Budget Innovation and Technology 207 266
CC 05-15-2025
266 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Innovation and Technology 208 267
CC 05-15-2025
267 of 655
Department Overview
Budget Units
Budget Unit Program 2026 Proposed Budget
I&T Administration $ 224,231
610-30-300 Innovation & Technology Administration $ 224,231 Video $ 1,132,993
100-31-305 Video $ 1,132,993
Applications $ 2,329,660
100-32-308 Applications $ 2,329,660
Infrastructure $ 2,856,513
610-34-310 Infrastructure $ 2,856,513
GIS $ 1,303,472
610-35-986 GIS $ 1,303,472
Total $ 7,846,869
FY 2025-26 Proposed Budget Innovation and Technology 209 268
CC 05-15-2025
268 of 655
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 6,640,514
Total Expenditures $ 7,846,869
Fund Balance $ 366,279
General Fund Costs $ 2,572,634
% Funded by General Fund 32.8%
Total Staffing 13.9 FTE
Organization
Teri Gerhardt, CGCIO, Chief Technology Officer
Notable Accomplishments
New City Website Launched – Collaborating with various departments, the newly designed City of Cupertino website (cupertino.gov) was launched. The new website has a more robust backend content management system and integrates with many other applications like Legistar, GovDelivery and Accela.

ProjectDox move to SaaS – IT Applications moved ProjectDox, City’s plan check review system to the SaaS (SoVware as Service) model. This move helps Cupertino to always stay on the latest ProjectDox version and shiVs the responsibility of the day-to-day maintenance, upgrades, and back-ups to the vendor.

Consolidation of Code Enforcement Services-- The Code Enforcement operations were consolidated under the Accela Land Management System (LMS) pulling all CDD operations under one enterprise system. This implementation streamlines code enforcement day-to-day operations as well as supports routing complaints and service requests directly to Code Enforcement officers.

Startup Sofware – Implemented Startup Space platform to welcome new businesses in Cupertino. The application provides access to government, public, and privately sponsored resources to medium and small businesses.

Business Process Automation – Continued to pursue business process automation, we’ve automated 50 forms, workflows, approval processes, and routine tasks. Our aim is to enhance process and technology integration, facilitating the adoption of FY 2025-26 Proposed Budget Innovation and Technology 210 269
CC 05-15-2025
269 of 655
streamlined, digital workflows that optimize efficiency while minimizing risk exposure.

Disaster Preparedness – In collaboration with OES, we've developed disaster response tools to support emergency operations.

These include a Quick Capture tool for rapid windshield surveys, a Building Damage Assessment Survey based on the state form, real-time EOC Dashboards, and a Reviewer Map for GIS staff. We've also created detailed evacuation maps for each zone. We continually test and refine these tools to ensure their effectiveness and reliability.

AR McClellan Ranch – Visitors to McClellan Ranch can download the app from iTunes or Google Play, choose a language (English, Hindi, or Mandarin), and follow Cooper through six AR stops. Each features immersive text and audio content highlighting native species and activities at the Ranch.

Cupertino Modern Data Warehouse – The City of Cupertino, in collaboration with OmniData, implemented a modern data warehouse using MicrosoV Fabric, unifying data into a scalable lakehouse architecture for enhanced reporting, analytics, and governance. Staff were trained to support and expand the platform, enabling advanced data-driven decision-making.

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

City Hall Enterprise Server & Storage Tech refresh – Replaced the server environment that houses the City’s Financial ERP , Land Management business applications, and other critical applications and services. This refresh was done at the City Hall and Phoenix data centers and provides more robust backup and recovery features in the case of a cyber incident. .gov E-mail Project – Acquired and implemented the cupertino.gov address to our E-mail system, improving security and branding, and satisfying major requirements of California State Assembly Bill 1637.

Cybersecurity Assessment – I&T partnered with FRSecure for a comprehensive cybersecurity review, which included a vulnerability scan, network penetration test, and security controls assessment through interviews with staff across departments. A roadmap was created to guide improvements in the City's cybersecurity operations.

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

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

New Initiatives
ERP Replacement - The City of Cupertino is replacing its outdated Tyler New World ERP to modernize its financial and payroll systems, improving automation, integration, and user experience while reducing inefficiencies and security risks.

With Council approval, the City will resume its phased implementation plan.

Broadcast & AV System Modernization - Cupertino is upgrading its broadcast and Community Hall AV systems with ASG, using PEG funds. The project includes HD video, LED lighting, centralized controls, and modern infrastructure to improve quality, efficiency, and future scalability.

Virtual Reality (VR) Decarb – With grant funds from Silicon Valley Clean Energy (SVCE), Cupertino will create a VR experience to educate residents about decarbonization by showcasing a zero-emissions home. The VR DECARB system will be available at local festivals, Block Parties, and upon community request to inspire the adoption of zero-emission options in homes.

Business Process Automation – Innovation & Technology is transforming Cupertino’s operations with secure, scalable digital workflows. With 50+ forms automated and more in progress, we're streamlining processes to boost efficiency and reduce risk.

Accela Roadmap – Developed strategic initiatives for achieving the maximum potential from the use of Accela platform pertaining to both its back-office systems and its public portal for Cupertino residents and external stakeholders.

ACA Guide and Wrapper – Enhance user interface and provide seamless navigation through a new guide and wrapper on the City’s Land Management System – Accela Citizen Access. The portals site has high traffic for users seeking the permit counter and business license services and user-friendly interface and navigation will help the City to provide its core services to our customers in an efficient way.

Phone System Replacement Project - The City is transitioning to a modern, cloud-based phone system that will enhance staff mobility, enable secure calling and texting from mobile devices and laptops, and eliminate the need for VPN access offsite.

The new system will improve communication efficiency and reduce reliance on City-issued cell phones.

FY 2025-26 Proposed Budget Innovation and Technology 211 270
CC 05-15-2025
270 of 655
Performance Measures
Goal: Provide superior delivery of information and technology services to city employees and constituents while continually enhancing levels of engagement.

Benefit: Integrated information services enable customer access to the tools and information they need, when and where they need it.

Performance Measure
FY 2023
July-June
FY 2024
July-Jun
FY2025
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% 99.99% 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 1,100,00 630,000 5% annual increase
Applications: Number of support request for the applications support per month 640 850 628 20
Video: Percentage of total video productions performed vs scheduled productions (city meetings excluded)
356%
57/16
220%
44/20
130%
26/20 100%
Video: Percentage of total engineering projects vs scheduled projects
200%
10/5
182%
11/6
0%
0/0 100%
Video: Total video views on YouTube* 141,571 135,641 86,808 5% annual increase FY 2025-26 Proposed Budget Innovation and Technology 212 271
CC 05-15-2025
271 of 655
* Unable to retrieve Granicus viewership data due to error in their reporting module FY 2025-26 Proposed Budget Innovation and Technology 213 272
CC 05-15-2025
272 of 655
Workload Indicators
Applications Division
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-Dec
Number of tasks for Enterprise Programs Support & Maintenance - includes enterprise business platforms like ERP, Land Management System, Recreation System, City Digital Records, City Website and many programs like Admin Services digital transformation, citywide permitting, licensing, and enforcement solutions.
2,250
Standardizing
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 Citywide Applications - This measure involves the task of project research and communications, project charter creation, creating or reviewing statement of work, contractor research and selection process, activity and resource planning, creation of work breakdown structure, team building, time management, deliverable management, customer satisfaction, risk management, communication management, project closeout process and documentation.
95% 96% 95%
FY 2025-26 Proposed Budget Innovation and Technology 214 273
CC 05-15-2025
273 of 655
Infrastructure Division
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-Dec
% of helpdesk requests completed 48 hours or less - Prompt customer service and attention is a critical customer service measurement to ensure staff is able to perform and excel with their daily duties. This core responsibilty is performed by two Network Specialists serving 200-250 staff depending on the time of year. Infrastructure's goal is to provide a service level where 90% of all helpdesk service requests are completed in 48 hours or less.

85.9% 90.4% 91.3%
% of network uptime - Maintain availability and accessibility of the City's network infrastructure during business hours of operation. The City's local and wide area networks require high reliability to ensure various applications (ERP, GIS, Land management, etc.) and services (Internet, e- mail, shared files, City web services, etc). are available for staff and members of the public.

99.9% 99.9% 99.9%
Number of IT Projects Completed - Project research and communications, project charter creation, SOW creation, contractor research and selection process, activity & resource planning/work breakdown structure, team building and motivation, time management, deliverable management, ensuring customer satisfaction, risk management, communication management, project closeout process, documentation
N/A 5 4
FY 2025-26 Proposed Budget Innovation and Technology 215 274
CC 05-15-2025
274 of 655
GIS Division
Workload Indicator FY 2023
July-June
FY 2023
July-June
FY 2025
July-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
Video Division
FY 2025-26 Proposed Budget Innovation and Technology 216 275
CC 05-15-2025
275 of 655
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 "milestones" 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
130%
26/20
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 "engineering milestones" 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
0%
0/0
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 86,808
* Percentage skewed due to pandemic - more overall views due to daily press conference postings Proposed Budget
It is recommended that City Council approve a budget of $7,846,869 for the Innovation and Technology department. This represents an increase of $1,123,442 (16.7%) from the FY 2024-25 Adopted Budget.

FY 2025-26 Proposed Budget Innovation and Technology 217 276
CC 05-15-2025
276 of 655
Compensation increased due to a request for a new classification of Principal Business Analyst. This position will play a key leadership role in driving a variety of technology initiatives and managing complex IT projects, as well as provide critical oversight for optimizing business processes, ensuring they align with the City's strategic goals. Compensation also increased due to the addition of three interns across the department. Increases in Materials, Contract Services and Special Projects are due to multi-year and new infrastructure and application enhancements.

For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets.

Citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference.

Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories.

Lastly, this department is also requesting, $449,696 in budget requests. These request are discussed in the program budget narratives.

FY 2025-26 Proposed Budget Innovation and Technology 218 277
CC 05-15-2025
277 of 655
Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

36.4%

29.7%

16.6%

14.4%
Infrastructure
Applications
GIS
Video
I&T Administration
$6.44M
$7.28M
$6.72M
$7.85M
2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Innovation and Technology 219 278
CC 05-15-2025
278 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ (30) $ 24,480 $ - $ -
Charges for Services $ 3,928,046 $ 4,096,692 $ 5,113,586 $ 5,340,514 Miscellaneous Revenue $ - $ 5,666 $ - $ 300,000
Transfers In $ 2,537,500 $ 1,037,684 $ 197,000 $ 1,000,000 Total Revenues $ 6,465,516 $ 5,164,522 $ 5,310,586 $ 6,640,514 Expenditures
Employee Compensation $ 2,455,241 $ 2,782,948 $ 2,746,194 $ 2,776,366 Employee Benefits $ 1,078,676 $ 1,332,388 $ 1,125,453 $ 981,164 Materials $ 1,717,933 $ 1,982,298 $ 1,655,136 $ 2,067,334 Contract Services $ 446,993 $ 480,812 $ 714,647 $ 811,305 Cost Allocation $ - $ - $ 230,915 $ 699,739
Special Projects $ 516,888 $ 507,029 $ - $ 225,000
Other Financing Uses $ 221,459 $ 115,426 $ 221,459 $ 285,961 Transfers Out $ - $ 76,000 $ - $ -
Contingencies $ - $ - $ 29,623 $ -
Total Expenditures $ 6,437,190 $ 7,276,901 $ 6,723,427 $ 7,846,869 Fund Balance $ 1,092,708 $ (787,165) $ (42,256) $ 366,279 General Fund Costs $ 3,601,883 $ 2,362,899 $ 1,567,585 $ 2,572,634 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.95 0 0 0
BUSINESS SYSTEMS ANALYST 3.00 3.00 3.00 3.00
CHIEF TECHNOLOGY OFFICER 0.98 0.98 0.98 0.98
GIS ANALYST 1.00 1.00 1.00 0
GIS PROGRAM MANAGER 1.00 1.00 1.00 0
INFO TECHNOLOGY MANAGER 1.00 1.00 1.00 1.00
INNOVATION & TECHNOLOGY MGR APPS 1.00 1.00 0 1.00
I.T. ASSISTANT 2.00 0 0 0
MANAGEMENT ANALYST 1.00 1.95 1.95 1.95
MULTIMEDIA COMMUNICATIONS SPEC 1.50 3.00 3.00 3.00
NETWORK SPECIALIST 0 2.00 2.00 2.00
SENIOR BUSINESS SYSTEMS ANALYST 0 0 0 1.00
Total 13.43 14.93 13.93 13.93
FY 2025-26 Proposed Budget Innovation and Technology 220 279
CC 05-15-2025
279 of 655
Innovation & Technology Administration
Budget Unit 610-30-300
Information Technology - I&T Administration - Innovation & Technology Administration Budget at a Glance
2026 Proposed Budget
Total Revenues $ 89,599
Total Expenditures $ 224,231
Fund Balance $ (134,632)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.2 FTE
Program Overview
The Innovation & Technology Department Administration Division is responsible for the strategic planning, governance, policy seDing, and leadership in the use of digital services for the City. The services include a state of the art network which provides transport for best of class business applications, e.g., financial, land management, recreation, asset management, HR, e-commerce and work order management. Additionally, Administration ensures oversight of budget, tactical plans, succession planning, partnership development (internal/external) and staffing. Procurement and budget monitoring are also responsibilities of Administration.

Service Objectives
Develop a roadmap to effectively leverage existing technology and adopt emerging technology to meet business needs.

Create and sustain a workplace atmosphere that promotes a balance between employee innovation, accountability and business needs.

Ensure two-way communication between and among the City organization and stakeholders.

Improve user experience including ease of use, availability, and accessibility within the context of compliance with industry standards.

Ensure transparent and easy access to City information and services via multiple technologies, e.g. social media, TV , web, and radio.

Proposed Budget
It is recommended that City Council approve a budget of $224,231 for the Innovation & Technology Administration program. This represents an increase of $146,425 (188.2%) from the FY 2024-25 Adopted Budget.

The increase is due to increases in Cost Allocation and conference and training expenses.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Innovation and Technology 221 280
CC 05-15-2025
280 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ - $ - $ 191,672 $ 89,599
Transfers In $ 82,500 $ - $ - $ -
Total Revenues $ 82,500 $ - $ 191,672 $ 89,599
Expenditures
Employee Compensation $ 129,616 $ 148,116 $ 45,698 $ 39,787 Employee Benefits $ 47,311 $ 72,678 $ 20,160 $ 16,263
Materials $ 8,809 $ 2,918 $ 5,721 $ 9,657
Contract Services $ 7,933 $ 757 $ 2,000 $ 6,914
Cost Allocation $ - $ - $ 4,130 $ 151,610
Special Projects $ 41,000 $ 67,380 $ - $ -
Transfers Out $ - $ 60,000 $ - $ -
Contingencies $ - $ - $ 97 $ -
Total Expenditures $ 234,669 $ 351,849 $ 77,806 $ 224,231 Fund Balance $ (152,169) $ (351,849) $ 113,866 $ (134,632) General Fund Costs $ 82,500 $ - $ - $ -
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.15 0 0 0
CHIEF TECHNOLOGY OFFICER 0.38 0.38 0.10 0.08
MANAGEMENT ANALYST 0 0.15 0.15 0.15
Total 0.53 0.53 0.25 0.23
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Innovation and Technology 222 281
CC 05-15-2025
281 of 655
Video
Budget Unit 100-31-305
General Fund - Video - Video
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 85,163
Total Expenditures $ 1,132,993
Fund Balance $ -
General Fund Costs $ 1,047,830
% Funded by General Fund 92.5%
Total Staffing 3.3 FTE
Program Overview
The Multimedia Division manages Cupertino’s public communication channels, including the City Channel, YouTube, and digital signage in City facilities. The team produces and streams hybrid Council and Planning Commission meetings, provides video production and editing services for City departments, and supports Commission meetings through webinar training, technical setup, and timely posting of recordings. These efforts ensure transparent communication and keep residents informed and engaged.

Service Objectives
Public Communication Channel: Through City Channel, YouTube, and Digital Signage Cupertino’s delivering information to residents and providing coverage of City meetings and community events.

Live Meeting Production and Webcasting: Production of hybrid Council and Planning Commission meetings, ensuring smooth integration of in-person and virtual participation. Meetings are streamed live on YouTube and Granicus, providing real-time public access. Recordings are archived for on-demand viewing, supporting transparency, civic engagement, and easy access to past meetings.

Multimedia Production and Editing: Providing professional video production and editing services to support the communication needs of all City departments including City Council. This includes producing promotional videos, educational content, and event coverage while ensuring that all video production equipment remains operational and up to date.

Commission Meeting Support: Providing comprehensive support for Commission meetings, including Zoom webinar training for staff, technical setup, post-meeting editing, and ensuring timely posting of recordings to public platforms.

Proposed Budget
It is recommended that City Council approve a budget of $1,132,993 for the Video program. This represents a decrease of $46,068 (-3.9%) from the FY 2024-25 Adopted Budget.

This decrease is a result of reallocating staff time to more accurately represent the actual time spent on the program. It is offset by an increase in contract costs for engineering support, following the retirement of a previous consultant.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Innovation and Technology 223 282
CC 05-15-2025
282 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 11,506 $ 10,829 $ 85,679 $ 85,163 Total Revenues $ 11,506 $ 10,829 $ 85,679 $ 85,163
Expenditures
Employee Compensation $ 230,675 $ 514,189 $ 619,967 $ 573,733 Employee Benefits $ 65,460 $ 203,771 $ 268,574 $ 224,471 Materials $ 69,243 $ 20,270 $ 37,319 $ 46,200
Contract Services $ 70,852 $ 43,071 $ 197,746 $ 230,660 Cost Allocation $ - $ - $ 52,517 $ 57,929
Special Projects $ 42,433 $ 40,242 $ - $ -
Contingencies $ - $ - $ 2,938 $ -
Total Expenditures $ 478,663 $ 821,543 $ 1,179,061 $ 1,132,993 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 467,157 $ 810,715 $ 1,093,382 $ 1,047,830 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget CHIEF TECHNOLOGY OFFICER 0 0 0.13 0.25
MULTIMEDIA COMMUNICATIONS SPEC 1.50 3.00 3.00 3.00
Total 1.50 3.00 3.13 3.25
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Innovation and Technology 224 283
CC 05-15-2025
283 of 655
Applications
Budget Unit 100-32-308
General Fund - Applications - Applications
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,804,856
Total Expenditures $ 2,329,660
Fund Balance $ -
General Fund Costs $ 524,804
% Funded by General Fund 22.5%
Total Staffing 3.5 FTE
Program Overview
The Applications Division manages citywide enterprise soVware systems supporting critical business functions. It oversees the procurement, development, implementation, and maintenance of key systems, including Financial ERP , Land-Use Management, Recreation Management, and customer-facing portals. The division also manages records retention, procurement, and customer relationship management systems.

Additionally, the team develops and maintains the City's website, Intranet, and mobile apps, supporting digital services such as permitting, licensing, inspections, and enforcement. It also builds custom applications like bid management and residential parking permits while ensuring seamless data integration across enterprise systems.

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

Aid departments in developing efficient business processes that are easy to operate and can be digitized and implemented in existing or new enterprise applications.

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

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

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

Supports the enterprise data in the data warehouse.

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

Produce business analytics dashboards for city staff and external stakeholders.

Proposed Budget
It is recommended that City Council approve a budget of $2,329,660 for the Applications program. This represents an increase of $385,728 (19.8%) from the FY 2024-25 Adopted Budget.

The increase in Materials is primarily due to the reallocation of applications such as Laserfiche, City Source, Start Up Space, and the ActiveNet Data Hub back into the Applications Division from other program areas.

The rise in Employee Compensation and Benefits reflects the addition of one part-time position and an intern to beDer align staffing with the level and scope of work required to support citywide software platforms and applications.

The increase in Contract Services is attributed to Phase II of the ERP replacement project.

The following budget request are included in this budget:

FY 2025-26 Proposed Budget Innovation and Technology 225 284
CC 05-15-2025
284 of 655
Applications - Social Media Ret Archiving App 7,500
Applications - Energy Management System 33,500
Applications - ZenDesk Licenses for PW 4,140
Applications - Logikcull 33,500
Applications-Additional Accela Licenses (2) for CDD
staff
5,500
Total all requests $84,140
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ (30) $ 24,480 $ - $ -
Charges for Services $ 1,431,322 $ 1,539,005 $ 1,666,729 $ 1,504,856 Miscellaneous Revenue $ - $ - $ - $ 300,000
Total Revenues $ 1,431,292 $ 1,563,485 $ 1,666,729 $ 1,804,856 Expenditures
Employee Compensation $ 718,099 $ 687,647 $ 666,439 $ 840,993 Employee Benefits $ 210,496 $ 232,209 $ 231,676 $ 246,704 Materials $ 909,110 $ 887,573 $ 880,026 $ 1,049,696
Contract Services $ 59,951 $ 111,731 $ 103,121 $ 118,329 Cost Allocation $ - $ - $ 50,381 $ 73,938
Special Projects $ 130,862 $ 158,825 $ - $ -
Contingencies $ - $ - $ 12,289 $ -
Total Expenditures $ 2,028,518 $ 2,077,985 $ 1,943,932 $ 2,329,660 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 597,226 $ 514,500 $ 277,203 $ 524,804 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Innovation and Technology 226 285
CC 05-15-2025
285 of 655
Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.30 0 0 0
BUSINESS SYSTEMS ANALYST 2.00 2.00 2.00 2.00
CHIEF TECHNOLOGY OFFICER 0.20 0.20 0.75 0.23
INNOVATION & TECHNOLOGY MGR APPS 1.00 1.00 0 1.00
MANAGEMENT ANALYST 0 0.30 0.30 0.30
Total 3.50 3.50 3.05 3.53
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Innovation and Technology 227 286
CC 05-15-2025
286 of 655
Infrastructure
Budget Unit 610-34-310
Information Technology - Infrastructure - Infrastructure Budget at a Glance
2026 Proposed Budget
Total Revenues $ 3,532,269
Total Expenditures $ 2,856,513
Fund Balance $ 675,756
General Fund Costs $ 1,000,000
% Funded by General Fund 35.0%
Total Staffing 4.5 FTE
Program Overview
The IT infrastructure division is responsible for planning, developing, implementing, and maintaining the core technological systems that support an organization's daily operations and long-term goals. This division manages both physical and virtual components, including servers, data centers, networks, cloud platforms, and end-user devices. It oversees the installation and configuration of hardware and software, ensuring seamless connectivity and optimal performance across systems.

Key responsibilities include server and network management, data storage, backup and recovery, cybersecurity, and technical support. The division plays a critical role in safeguarding the organization's data and systems through security protocols, threat detection, and disaster recovery planning. Additionally, the Infrastructure Manager and staff are also responsible for helpdesk, project management of implementations and upgrades, purchasing and inventory control, technical training, and maintenance of all systems.

By ensuring the reliability, performance, and security of IT systems, the IT infrastructure division enables business continuity, operational efficiency, and the delivery of high-quality services across the organization. Infrastructure is also tasked with ensuring that the City continues to follow best practices in technology adoption and security.

Service Objectives
Provide and continuously improve helpdesk support as this function is oVen the face of IT that staff interacts with on a daily basis.

Deliver efficient and reliable services to meet and exceed customer expectations.

Maintain standards and procedures for the replacement, support, and maintenance of all City-owned computing devices, printers, networks, peripherals and systems defined by City policy.

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

Proactively monitor and protect the City 24/7 from cyberthreats and conduct ongoing City-wide educational and security- related training programs.

Continue innovation and outreach to ensure the City follows best IT practices relating to equipment, policy, and security practices.

Proposed Budget
It is recommended that City Council approve a budget of $2,856,513 for the Infrastructure program. This represents an increase of $777,134 (37.4%) from the FY 2024-25 Adopted Budget.

This budget includes the follow budget request:

FY 2025-26 Proposed Budget Innovation and Technology 228 287
CC 05-15-2025
287 of 655
Infrastructure - Endpoint and Patch Management System 15,000 Infrastructure - Network Glue for Network Diagram and
Management
6,000
Infrastructure - Mitel Packet Fusion Replacement 6,000
Infrastructure - Poster Printer replacement 5,000
Infrastructure - Sr. Center Tech Lab Projection System 16,000 Infrastructure - Switches and Firewall Upgrade 21,000
Infrastructure - Adaptive Traffic Signal Expansion 225,000 Total all requests $294,000
For further details on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document.

Special Projects
The following table shows the special projects for the fiscal year.

Special Project Appropriation Revenue Funding Source Description Adaptive Traffic Signal
Expansion $225,000 $225,000 General Fund
Expand Traffic adaptive
signalization system
along five intersections
on De Anza
Total $225,000 $225,000
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Innovation and Technology 229 288
CC 05-15-2025
288 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 1,556,269 $ 1,591,722 $ 1,745,011 $ 2,532,269 Miscellaneous Revenue $ - $ 5,666 $ - $ -
Transfers In $ 2,455,000 $ 910,600 $ 197,000 $ 1,000,000 Total Revenues $ 4,011,269 $ 2,507,988 $ 1,942,011 $ 3,532,269 Expenditures
Employee Compensation $ 675,800 $ 709,991 $ 716,658 $ 832,853 Employee Benefits $ 383,045 $ 424,688 $ 318,911 $ 306,618 Materials $ 632,757 $ 902,821 $ 506,467 $ 703,404
Contract Services $ 184,272 $ 181,364 $ 235,580 $ 248,840 Cost Allocation $ - $ - $ 71,028 $ 253,837
Special Projects $ 98,353 $ 190,772 $ - $ 225,000
Other Financing Uses $ 221,459 $ 115,426 $ 221,459 $ 285,961 Transfers Out $ - $ 16,000 $ - $ -
Contingencies $ - $ - $ 9,276 $ -
Total Expenditures $ 2,195,686 $ 2,541,062 $ 2,079,379 $ 2,856,513 Fund Balance $ 1,815,583 $ (33,074) $ (137,368) $ 675,756 General Fund Costs $ 2,455,000 $ 910,600 $ 197,000 $ 1,000,000 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.30 0 0 0
BUSINESS SYSTEMS ANALYST 1.00 1.00 1.00 1.00
CHIEF TECHNOLOGY OFFICER 0.20 0.20 0.00 0.22
INFO TECHNOLOGY MANAGER 1.00 1.00 1.00 1.00
I.T. ASSISTANT 2.00 0 0 0
MANAGEMENT ANALYST 0 0.30 0.30 0.30
NETWORK SPECIALIST 0 2.00 2.00 2.00
Total 4.50 4.50 4.30 4.52
Staff time is being reallocated to better reflect actual time spent in this program. FY 2025-26 Proposed Budget Innovation and Technology 230 289
CC 05-15-2025
289 of 655
GIS
Budget Unit 610-35-986
Information Technology - GIS - GIS
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,128,627
Total Expenditures $ 1,303,472
Fund Balance $ (174,845)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 2.4 FTE
Program Overview
The Geographic Information Systems (GIS) program serves as Cupertino’s central resource for capturing, managing, analyzing, and visualizing the City's enterprise information. In addition to administering the City’s asset management system, public service request system, data warehouse, and SharePoint intranet Hub, the GIS program also manages key collaborative platforms such as MicrosoV Teams, Planner, and supports research and development related to artificial intelligence. Through the creation of maps, reports, dashboards, and charts, the program enables staff, residents, businesses, and the development community to explore, interpret, and understand critical city data. By providing clear and accessible visualizations, the GIS program supports informed decision-making and collaborative problem-solving across the organization and the community.

Service Objectives
Efficient Data Management
Coordination and management of the City’s data warehouse used to centralizes enterprise data, while ensuring consistency, enhancing performance, supporting historical analysis, and enabling data-driven decisions through seamless integration with analytics tools.

Data Analysis and Visualization
The GIS program analyzes city data to identify paDerns and trends, presenting findings through maps, reports, dashboards, and charts to support informed decision-making.

User Support and Training
Staff and residents receive guidance and training to effectively use data tools for analysis, problem-solving, and decision-making.

Platform Administration
The GIS program manages and maintains core platforms, including GIS, asset management, public service requests, data warehouse, intranet hub, collaboration tools, and digital workflows.

Collaboration and Integration
GIS supports collaboration by integrating data and tools across departments, agencies, and stakeholders to enhance coordination and information sharing.

Disaster Response and Recovery
The GIS platform supports emergency response and recovery with tools for damage assessment, incident mapping, resource tracking, and situational awareness, ensuring timely and informed decision-making.

Continuous Improvement
The program regularly enhances platforms and processes to meet evolving needs, leverage new technologies, and adopt best practices.

Proposed Budget
FY 2025-26 Proposed Budget Innovation and Technology 231 290
CC 05-15-2025
290 of 655
Proposed Budget
It is recommended that City Council approve a budget of $1,303,472 for the GIS program. This represents a decrease of $139,777 (-

9.7%) from the FY 2024-25 Adopted Budget.

The decrease is a result of the reduction of a manager from this division and the reassignment of a part-time applications specialist to the Applications Division.

These decreases are offset by an increase in salary due to a request for a new classification of Senior Business Analyst, Cost Allocation, and conference and training expenses. This new classification will play a key leadership role in driving a variety of technology initiatives and managing complex IT projects, as well as provide critical oversight for optimizing business processes, ensuring they align with the City's strategic goals.

This budget includes the following requests:

GIS - 811 Integration Software 15,000
GIS - ESRI Enterprise Licenses 3,800
GIS - AI Solution for CMO Staff Reports or State Bill
Tracking
10,000
GIS - Chatbox 5,000
GIS - OmniData 23,000
Total Requests $56,800
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 928,949 $ 955,136 $ 1,424,495 $ 1,128,627 Transfers In $ - $ 127,084 $ - $ -
Total Revenues $ 928,949 $ 1,082,220 $ 1,424,495 $ 1,128,627 Expenditures
Employee Compensation $ 701,051 $ 723,005 $ 697,432 $ 489,000 Employee Benefits $ 372,364 $ 399,042 $ 286,132 $ 187,108 Materials $ 98,014 $ 168,716 $ 225,603 $ 258,377
Contract Services $ 123,985 $ 143,889 $ 176,200 $ 206,562 Cost Allocation $ - $ - $ 52,859 $ 162,425
Special Projects $ 204,240 $ 49,810 $ - $ -
Contingencies $ - $ - $ 5,023 $ -
Total Expenditures $ 1,499,654 $ 1,484,462 $ 1,443,249 $ 1,303,472 Fund Balance $ (570,706) $ (402,242) $ (18,754) $ (174,845) General Fund Costs $ - $ 127,084 $ - $ -
Staffing
FY 2025-26 Proposed Budget Innovation and Technology 232 291
CC 05-15-2025
291 of 655
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.20 0 0 0
CHIEF TECHNOLOGY OFFICER 0.20 0.20 0.00 0.20
GIS ANALYST 1.00 1.00 1.00 0
GIS PROGRAM MANAGER 1.00 1.00 1.00 0
MANAGEMENT ANALYST 1.00 1.20 1.20 1.20
SENIOR BUSINESS SYSTEMS ANALYST 0 0 0 1.00
Total 3.40 3.40 3.20 2.40
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Innovation and Technology 233 292
CC 05-15-2025
292 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Innovation and Technology 234 293
CC 05-15-2025
293 of 655
Administrative Services
FY 2025-26 Proposed Budget Administrative Services 235
294
CC 05-15-2025
294 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Administrative Services 236
295
CC 05-15-2025
295 of 655
Department Overview
Budget Units
Budget Unit Program 2026 Proposed Budget
Administrative Services $ 665,251
100-40-400 Administrative Services Administration $ 665,251 Finance $ 3,557,842
100-41-405 Accounting $ 2,169,694
100-41-406 Business Licenses $ 290,993
100-41-425 Purchasing $ 719,444
100-41-426 Budget $ 377,711
Human Resources $ 7,024,904
100-44-412 Human Resources $ 1,527,704
642-44-414 Retiree Benefits $ 1,677,311
100-44-417 Insurance Administration $ 2,537,324
620-44-418 Workers Compensation Insurance $ 495,813
641-44-419 Long Term Disability $ 130,875
641-44-420 Compensated Absences $ 655,877
Total $ 11,247,997
FY 2025-26 Proposed Budget Administrative Services 237
296
CC 05-15-2025
296 of 655
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 8,905,591
Total Expenditures $ 11,247,997
Fund Balance $ 209,708
General Fund Costs $ 5,168,167
% Funded by General Fund 45.9%
Total Staffing 18.9 FTE
Organization
Kristina Alfaro, Director of Administrative Services
FY 2025-26 Proposed Budget Administrative Services 238
297
CC 05-15-2025
297 of 655
Performance Measures
Finance Division
Goal: Financial Stability - Provide a sustainable level of core services that are funded from ongoing and stable revenue sources.

Benefit: Citizens can enjoy high quality of services that meet community priorities.

Performance Measure
FY 2023
July-June
FY 2024
July-June
FY 2025
July-Dec
Ongoing
Target
General Fund committed, assigned, and unassigned fund balance as a % of budgeted appropriations 122% 45% 101% 35%
Credit Rating AA+ AA+ AA+ AA+
Actual revenue vs. budget (% below budget) 17% 20% 147% 10% Actual expenditures (% below budget) 14% 14% 189% 5%
Funding allocated to high priority services (Public Works, Community Development, Law Enforcement) 58% 66% 71% 63% Human Resources Division
Goal: To create a thriving organization with meaningful careers in public service.

Benefit: The agency supports a professional and engaged workforce offering diverse and quality community services.

Performance Measure
FY 2023
July-June
FY 2024
July-June
FY 2025
July-Dec
Ongoing
Target
# of Worker’s Compensation Cases 4 9 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 FY 2025-26 Proposed Budget Administrative Services 239
298
CC 05-15-2025
298 of 655
Workload Indicators
Finance Division
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-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 1,087 587
# 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 Division
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-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 Proposed Budget
It is recommended that City Council approve a budget of $11,247,997 for the Administrative Services department. This represents an increase of $692,367 (6.6%) from the FY 2024-25 Adopted Budget.

This increase is due to salary costs related to a proposed new classification of Assistant Director of Administrative Services to overfill a Budget Manager position, the reclassification of an Account Clerk II position to a Management Analyst which will beDer align with program needs, and a new Management Analyst to support grants management and purchasing.

The increase is also due to a request of $200,000 for a Citywide Strategic Plan along with additional budget requests of $55,000 that are discussed in program narratives in this department.

For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan FY 2025-26 Proposed Budget Administrative Services 240
299
CC 05-15-2025
299 of 655
(CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets.

Citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference.

Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories.

FY 2025-26 Proposed Budget Administrative Services 241
300
CC 05-15-2025
300 of 655
Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

62.5%

31.6%

5.9%
Human Resources
Finance
Administrative Services
$8.54M
$9.04M
$10.6M
$11.2M
2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Administrative Services 242
301
CC 05-15-2025
301 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 3,974,879 $ 4,167,314 $ 5,103,482 $ 5,736,007 Miscellaneous Revenue $ 1,429,591 $ 43,680 $ - $ -
Other Financing Sources $ 436,462 $ - $ 468,984 $ 553,531 Transfers In $ 891,898 $ 380,000 $ 2,183,398 $ 2,616,053 Total Revenues $ 6,732,830 $ 4,590,994 $ 7,755,864 $ 8,905,591 Expenditures
Employee Compensation $ 2,446,331 $ 2,779,374 $ 2,766,469 $ 2,958,943 Employee Benefits $ 2,377,228 $ 2,600,731 $ 2,889,460 $ 2,986,362 Materials $ 127,195 $ 79,521 $ 111,160 $ 180,828
Contract Services $ 3,236,527 $ 3,199,416 $ 4,232,614 $ 4,331,333 Cost Allocation $ 349,530 $ 308,962 $ 511,081 $ 550,531 Special Projects $ 4,200 $ 67,300 $ - $ 240,000
Contingencies $ - $ - $ 44,846 $ -
Total Expenditures $ 8,541,011 $ 9,035,304 $ 10,555,630 $ 11,247,997 Fund Balance $ 149,410 $ (1,829,607) $ (366,139) $ 209,708 General Fund Costs $ 2,849,487 $ 2,994,704 $ 4,617,025 $ 5,168,167 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Administrative Services 243
302
CC 05-15-2025
302 of 655
Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ACCOUNTANT I 0 0 0 2.00
ACCOUNTANT II 2.00 2.00 2.00 0
ACCOUNT CLERK II 3.00 3.00 3.00 2.00
ACCOUNTING TECHNICIAN 1.00 1.00 1.00 1.00
ADMINISTRATIVE ASSISTANT 0.95 0 0 0
ASSISTANT DIRECTOR OF ADMIN SERVICES 0 0 0 1.00
BUDGET MANAGER 1.00 1.00 1.00 0
DIRECTOR OF ADMIN SERVICES 1.00 1.00 1.00 1.00
FINANCE MANAGER 0.95 0.95 0.95 0.95
GRANTS MANAGEMENT ANALYST 0 0 0 1.00
HUMAN RESOURCES ANALYST II 2.00 2.00 2.00 2.00
HUMAN RESOURCES MANAGER 1.00 1.00 1.00 1.00
HUMAN RESOURCES TECH 2.00 2.00 2.00 2.00
MANAGEMENT ANALYST 0 0.95 0.95 1.00
PURCHASING MANAGER 1.00 1.00 1.00 1.00
SENIOR ACCOUNTANT 1.00 1.00 1.00 1.00
SENIOR MANAGEMENT ANALYST 2.00 1.00 1.00 1.95
Total 18.90 17.90 17.90 18.90
FY 2025-26 Proposed Budget Administrative Services 244
303
CC 05-15-2025
303 of 655
Administrative Services Administration
Budget Unit 100-40-400
General Fund - Administrative Services - Administrative Services Administration Budget at a Glance
2026 Proposed Budget
Total Revenues $ 36,070
Total Expenditures $ 665,251
Fund Balance $ -
General Fund Costs $ 629,181
% Funded by General Fund 94.6%
Total Staffing 1.7 FTE
Program Overview
The Administrative Services Administration program oversees and coordinates Human Resources/Risk Management, Finance, Purchasing, Budget, and Treasury. In Fall 2022, City Council adopted the City's Fraud, Waste, and Abuse (FWA) Program which is administered by the City's Internal Auditor. The Internal Auditor monitors the hotline, triages complaints received, recommends action to the appropriate City personnel, and conducts investigations, as appropriate. Per Council direction, the Internal Auditor contract has moved from this program to City Council budget (100-10-100). Although the dollars are budgeted in the City Council program, the contract remains administered by the Administrative Services Department. Lastly, staff support from this program is provided to the Audit Committee.

Service Objectives
Manage the City's investment portfolio to obtain safety of funds, liquidity, and a reasonable rate of return.

Perform special projects for the City Manager.

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

Provide staff support to Audit Committee.

Proposed Budget
It is recommended that City Council approve a budget of $665,251 for the Administrative Services Administration program. This represents an increase of $279,161 (72.3%) from the FY 2024-25 Adopted Budget.

The increase is primarily due to compensation and benefits due to a proposed new classification of Assistant Director of Administrative Services. If this new classification is approved, the Assistant Director of Administrative Services will only represent

0.25 of this program.

This budget includes requests for $200,000 to fund a citywide strategic plan as recommended in both internal audits and the budget format review.

Special Projects
The following table shows the special projects for the fiscal year.

Special Project Appropriation Revenue Funding Source Description Citywide Strategic Plan $200,000 $200,000 General Fund Citywide Strategic Plan Total $200,000 $200,000
FY 2025-26 Proposed Budget Administrative Services 245
304
CC 05-15-2025
304 of 655
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 156,003 $ 154,333 $ 35,714 $ 36,070 Miscellaneous Revenue $ 11 $ - $ - $ -
Total Revenues $ 156,014 $ 154,333 $ 35,714 $ 36,070
Expenditures
Employee Compensation $ 540,819 $ 237,394 $ 239,790 $ 294,614 Employee Benefits $ 220,816 $ 92,162 $ 105,249 $ 114,197 Materials $ 17,917 $ 8,807 $ 12,199 $ 25,200
Contract Services $ - $ 1,835 $ 5,505 $ 5,681
Cost Allocation $ - $ - $ 23,126 $ 25,559
Special Projects $ - $ - $ - $ 200,000
Contingencies $ - $ - $ 221 $ -
Total Expenditures $ 779,552 $ 340,198 $ 386,090 $ 665,251 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 623,538 $ 185,865 $ 350,376 $ 629,181 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.95 0 0 0
ASSISTANT DIRECTOR OF ADMIN SERVICES 0 0 0 0.25
DIRECTOR OF ADMIN SERVICES 0.80 0.20 0.20 0.20
MANAGEMENT ANALYST 0 0.20 0.20 0
SENIOR MANAGEMENT ANALYST 2.00 1.00 1.00 1.20
Total 3.75 1.40 1.40 1.65
The increase in staffing is due to a proposed new classification of Assistant Director of Administrative Services.

FY 2025-26 Proposed Budget Administrative Services 246
305
CC 05-15-2025
305 of 655
Accounting
Budget Unit 100-41-405
General Fund - Finance - Accounting
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,918,912
Total Expenditures $ 2,169,694
Fund Balance $ -
General Fund Costs $ 250,782
% Funded by General Fund 11.6%
Total Staffing 7.8 FTE
Program Overview
The Finance Division is responsible for managing all financial accounting and treasury functions for the City of Cupertino. This includes maintaining accurate and timely financial records, processing payroll, collecting revenue, managing banking and investments, and disbursing City funds. The Division also ensures compliance with all required federal, state, and other regulatory financial reporting through its Accounting program. Additionally, Finance oversees the City's three investment policies, conducts financial analyses and research, and prepares reports on fiscal matters for both internal and external stakeholders.

Service Objectives
Accurately process all financial transactions for the City, including general ledger accounting, cash management, payroll, accounts payable, revenue collection, banking, investments, and miscellaneous billing.

Ensure all financial transactions are recorded in compliance with applicable regulatory requirements and sound financial practices.

Prepare timely and accurate financial reports.

Uphold a high standard of professionalism in administering the City’s financial policies, managing transactions, and interacting with the public.

Provide prompt and courteous responses to inquiries from the public and other City departments.

Proposed Budget
It is recommended that City Council approve a budget of $2,169,694 for the Accounting program. This represents an increase of $253,914 (13.3%) from the FY 2024-25 Adopted Budget.

The increase is due to the reallocation of staff between budget units, the reclassification of an Account Clerk II position to a Management Analyst to beDer align with program needs, and the allocation of a portion (25%) of the proposed Assistant Director of Administrative Services position to support the Finance Division.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Administrative Services 247
306
CC 05-15-2025
306 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 2,112,498 $ 2,128,861 $ 1,626,339 $ 1,918,912 Miscellaneous Revenue $ 39,662 $ 43,680 $ - $ -
Total Revenues $ 2,152,160 $ 2,172,541 $ 1,626,339 $ 1,918,912 Expenditures
Employee Compensation $ 803,440 $ 1,002,160 $ 960,073 $ 1,103,037 Employee Benefits $ 308,804 $ 420,688 $ 471,799 $ 551,185 Materials $ 14,576 $ 7,014 $ 16,323 $ 27,736
Contract Services $ 348,778 $ 325,512 $ 346,595 $ 349,900 Cost Allocation $ - $ - $ 116,454 $ 137,836
Special Projects $ 4,200 $ 47,300 $ - $ -
Contingencies $ - $ - $ 4,536 $ -
Total Expenditures $ 1,479,798 $ 1,802,674 $ 1,915,780 $ 2,169,694 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (672,362) $ (369,866) $ 289,441 $ 250,782 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ACCOUNTANT I 0 0 0 1.90
ACCOUNTANT II 1.90 1.90 1.90 0
ACCOUNT CLERK II 2.00 2.00 2.00 1.50
ACCOUNTING TECHNICIAN 1.00 1.00 1.00 1.00
ASSISTANT DIRECTOR OF ADMIN SERVICES 0 0 0 0.25
DIRECTOR OF ADMIN SERVICES 0 0.20 0.20 0.20
FINANCE MANAGER 0.95 0.95 0.95 0.95
MANAGEMENT ANALYST 0 0 0 1.00
SENIOR ACCOUNTANT 1.00 1.00 1.00 1.00
Total 6.85 7.05 7.05 7.80
Changes in staffing include the conversion of the Budget Manager position to an Assistant Director of Administrative Services, the reclassification of an Account Clerk II position to a Management Analyst, and the reallocation of an Account Clerk II from the Business License Program to better support the Finance Division's operations and strategic initiatives.

FY 2025-26 Proposed Budget Administrative Services 248
307
CC 05-15-2025
307 of 655
Business Licenses
Budget Unit 100-41-406
General Fund - Finance - Business Licenses
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 290,993
Fund Balance $ -
General Fund Costs $ 290,993
% Funded by General Fund 100.0%
Total Staffing 0.6 FTE
Program Overview
The Business Licenses program monitors business licensing activity for compliance with the City Municipal Code and applicable state law.

Service Objectives
Issue business licenses to entities conducting business within the city limits of Cupertino.

Collect appropriate business license fees.

Monitor compliance with the Business License Tax Code and provide useful information related to business activity to City departments.

Identify non-compliant business activity.

Proposed Budget
It is recommended that City Council approve a budget of $290,993 for the Business Licenses program. This represents a decrease of $34,074 (-10.5%) from the FY 2024-25 Adopted Budget.

The net expenditure decrease is due to the decrease in changes of staff allocations from the program's engagement of a third-party service provider to assist with business license administration, including monitoring compliance, processing applications, and enhancing discovery efforts to identify unlicensed business activities. This change is expected to streamline operations, improve service delivery, and strengthen overall compliance.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.FY 2025-26 Proposed Budget Administrative Services 249 308
CC 05-15-2025
308 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 114,293 $ 109,355 $ 109,333 $ 58,587 Employee Benefits $ 57,200 $ 55,009 $ 58,740 $ 35,174
Materials $ 204 $ 231 $ - $ -
Contract Services $ 18,753 $ 17,753 $ - $ 39,000
Cost Allocation $ 240,930 $ 208,512 $ 156,994 $ 158,232 Total Expenditures $ 431,380 $ 390,860 $ 325,067 $ 290,993 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 431,379 $ 390,860 $ 325,067 $ 290,993 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ACCOUNTANT I 0 0 0 0.10
ACCOUNTANT II 0.10 0.10 0.10 0
ACCOUNT CLERK II 1.00 1.00 1.00 0.50
Total 1.10 1.10 1.10 0.60
The program decreased by 0.50 FTE Account Clerk II as a result of the assistance from the third-party provider. The partial FTE was reallocated to the Finance Division.

FY 2025-26 Proposed Budget Administrative Services 250
309
CC 05-15-2025
309 of 655
Purchasing
Budget Unit 100-41-425
General Fund - Finance - Purchasing
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 387,426
Total Expenditures $ 719,444
Fund Balance $ -
General Fund Costs $ 332,018
% Funded by General Fund 46.1%
Total Staffing 2.5 FTE
Program Overview
The Purchasing program provides a hybrid approach to oversight and management of the City's procurement of goods and services. A hybrid procurement program assures fair and open acquisition processes that seek to obtain maximum value for each dollar spent. Major activities include providing review, guidance, and standardization for soliciting formal and informal competitive bids and proposals, obtaining quotes, and participating in cooperative procurements lead by other governmental agencies. In addition, the Purchasing program assists City employees in complying with all legal and ethical requirements.

Service Objectives
Oversee and manage the procurement of goods and services by the City while ensuring compliance with applicable federal, state, and local laws, ordinances, rules, and regulations.

Develop and implement strategic procurement planning, procurement policies and procedures, quality control, procurement training, electronic procurement systems, and procurement card administration.

Provide professional support and contractual advice to all stakeholders involving contractual services, consultants, equipment, supplies, construction, capital improvements, and other applicable activities.

Keep informed of current developments in the field of purchasing, prices, market conditions, and new products.

Proposed Budget
It is recommended that City Council approve a budget of $719,444 for the Purchasing program. This represents an increase of $294,635 (69.4%) from the FY 2024-25 Adopted Budget.

The increase is primarily due to the request to add one (1) FTE management analyst that will support grant submiDals, tracking and reporting while also supporting purchasing activities throughout the city. Also requested in this budget is a special project request to fund citywide purchasing training.

Special Projects
The following table shows the special projects for the fiscal year.

Special Project Appropriation Revenue Funding Source Description Citywide Purchasing
Training $20,000 $20,000 General Fund
Further enhance and
standardize citywide
purchasing
Total $20,000 $20,000
FY 2025-26 Proposed Budget Administrative Services 251
310
CC 05-15-2025
310 of 655
Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ - $ - $ 321,408 $ 387,426
Total Revenues $ - $ - $ 321,408 $ 387,426
Expenditures
Employee Compensation $ 35,897 $ 272,096 $ 272,068 $ 466,449 Employee Benefits $ (3,149) $ 113,106 $ 131,492 $ 205,047 Materials $ 1,546 $ 891 $ 1,409 $ 6,040
Contract Services $ 200 $ - $ - $ -
Cost Allocation $ - $ - $ 19,822 $ 21,908
Special Projects $ - $ - $ - $ 20,000
Contingencies $ - $ - $ 18 $ -
Total Expenditures $ 34,494 $ 386,093 $ 424,809 $ 719,444 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 34,494 $ 386,093 $ 103,401 $ 332,018 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT DIRECTOR OF ADMIN SERVICES 0 0 0 0.25
DIRECTOR OF ADMIN SERVICES 0 0.20 0.20 0.20
GRANTS MANAGEMENT ANALYST 0 0 0 1.00
PURCHASING MANAGER 1.00 1.00 1.00 1.00
Total 1.00 1.20 1.20 2.45
The increase in staffing is due to the addition of a management analyst.

FY 2025-26 Proposed Budget Administrative Services 252
311
CC 05-15-2025
311 of 655
Budget
Budget Unit 100-41-426
General Fund - Finance - Budget
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 577,634
Total Expenditures $ 377,711
Fund Balance $ -
General Fund Costs $ (199,923)
% Funded by General Fund -52.9%
Total Staffing 1.2 FTE
Program Overview
The Budget program manages the budget-to-actual activities for both the operating budget and capital budgets. The program also develops, delivers, and updates the annual operating budget, twenty-year long-term financial forecast, and revenue and expenditure projections. Additionally, the Budget program provides financial planning and fiscal analysis on City issues and complex business decisions.

Service Objectives
Develops the annual operating budget.

Coordinates the preparation and publication of the operating budget document.

Communicates the budget through the City's interactive financial transparency portal.

Engages residents in the budgeting process.

Develops the Twenty-Year General Fund Financial Forecast.

Prepares and updates revenue and expenditure forecasts.

Analyze budget performance during the year and prepare Quarterly Financial Reports.

Provides departments with timely and accurate financial reports to assist them in their daily decision-making.

Assists departments with any necessary budget amendments during the year.

Advises the City in the areas of short and long-term financial planning and fiscal analysis.

Advises the City in developing and implementing sound financial policies.

Proposed Budget
It is recommended that City Council approve a budget of $377,711 for the Budget program. This represents a decrease of $195,171 (-34.1%) from the FY 2024-25 Adopted Budget.

The decrease is primarily due to compensation and benefits as the Budget Manager position which is previously fully funded in this program will be converted into a proposed new classification of Assistant Director of Administrative Services the Assistant Director to help manage the functions and activities of the Finance, Purchasing and Budget divisions. If this new classification is approved, the Assistant Director of Administrative Services will only represent 0.25 of this program.

The budget also include a special project request to fund a study of potential revenue tax measures.

Special Projects
The following table shows the special projects for the fiscal year.

FY 2025-26 Proposed Budget Administrative Services 253
312
CC 05-15-2025
312 of 655
Special Project Appropriation Revenue Funding Source Description Potential Tax Measure
Study $20,000 $20,000 General Fund Analyze Proposed Tax Measures
Total $20,000 $20,000
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ - $ - $ 507,316 $ 577,634
Total Revenues $ - $ - $ 507,316 $ 577,634
Expenditures
Employee Compensation $ 130,237 $ 348,497 $ 366,895 $ 216,178 Employee Benefits $ 26,849 $ 129,605 $ 155,599 $ 87,967 Materials $ 7,168 $ 7,970 $ 17,953 $ 17,966
Contract Services $ 4,280 $ - $ - $ -
Cost Allocation $ - $ - $ 32,211 $ 35,600
Special Projects $ - $ 20,000 $ - $ 20,000
Contingencies $ - $ - $ 224 $ -
Total Expenditures $ 168,534 $ 506,072 $ 572,882 $ 377,711 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 168,534 $ 506,073 $ 65,566 $ (199,923) Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT DIRECTOR OF ADMIN SERVICES 0 0 0 0.25
BUDGET MANAGER 1.00 1.00 1.00 0
DIRECTOR OF ADMIN SERVICES 0 0.20 0.20 0.20
MANAGEMENT ANALYST 0 0.75 0.75 0
SENIOR MANAGEMENT ANALYST 0 0 0 0.75
Total 1.00 1.95 1.95 1.20
The change in staffing is due to the Budget Manager position being converted into a proposed new classification of Assistant Director of Administrative Services.

FY 2025-26 Proposed Budget Administrative Services 254
313
CC 05-15-2025
313 of 655
Human Resources
Budget Unit 100-44-412
General Fund - Human Resources - Human Resources
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,139,591
Total Expenditures $ 1,527,704
Fund Balance $ -
General Fund Costs $ 388,113
% Funded by General Fund 25.4%
Total Staffing 4.9 FTE
Program Overview
The Human Resources Division is responsible for the administration of human resources programs, employee benefits, and labor relation programs including personnel selection, classification, compensation, equal employment opportunity, labor negotiations, employee relations, employee training and development, benefits, HRIS and retirement. The Human Resources Administration Division budget covers contracts and materials associated with supporting these internal services functions.

In addition, Human Resources administers risk management, safety and wellness programs, a self-insured workers’ compensation program, and retiree medical insurance. Funding for these internal services is reflected in subsequent Human Resources program budgets.

Service Objectives
Provide a working environment where respect for the individual is encouraged and safeguarded.

Provide timely personnel services to departments and divisions in a fair, objective, and equitable manner.

Enter into agreements with employee groups concerning terms and conditions of employment.

Provide an employee development program addressing immediate and long-term training needs.

Provide departments a listing of qualified persons for employment consideration within sixty days of an authorized vacant position.

Ensure equal employment opportunities.

Administer classification plan.

Administer employee benefits.

Provide personnel services consistent with the operational needs of the user department.

Proposed Budget
It is recommended that City Council approve a budget of $1,527,704 for the Human Resources program. This represents an increase of $60,177 (4.1%) from the FY 2024-25 Adopted Budget.

This program also includes proposed budget requests of $5,000 for recurring costs for Diversity, Equity, and Inclusion (DEI) events for internal staff-related events. This budget also includes requests for $10,000 for City-Wide Employee Events which includes the Annual Wellness Fair.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Administrative Services 255
314
CC 05-15-2025
314 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 1,706,378 $ 1,884,120 $ 1,000,511 $ 1,139,591 Miscellaneous Revenue $ 2,470 $ - $ - $ -
Total Revenues $ 1,708,848 $ 1,884,120 $ 1,000,511 $ 1,139,591 Expenditures
Employee Compensation $ 767,855 $ 755,422 $ 765,589 $ 767,356 Employee Benefits $ 367,391 $ 381,501 $ 351,256 $ 310,702 Materials $ 85,784 $ 54,608 $ 63,276 $ 103,886
Contract Services $ 300,638 $ 240,397 $ 204,445 $ 257,216 Cost Allocation $ - $ - $ 80,114 $ 88,544
Contingencies $ - $ - $ 2,847 $ -
Total Expenditures $ 1,521,668 $ 1,431,928 $ 1,467,527 $ 1,527,704 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (187,181) $ (452,191) $ 467,016 $ 388,113 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget DIRECTOR OF ADMIN SERVICES 0.20 0.20 0.20 0.20
HUMAN RESOURCES ANALYST II 1.70 1.70 1.70 1.70
HUMAN RESOURCES MANAGER 1.00 1.00 1.00 1.00
HUMAN RESOURCES TECH 1.95 1.95 1.95 1.95
Total 4.85 4.85 4.85 4.85
There are no changes to the current levels of staffing.

FY 2025-26 Proposed Budget Administrative Services 256
315
CC 05-15-2025
315 of 655
Retiree Benefits
Budget Unit 642-44-414
Retiree Medical - Human Resources - Retiree Benefits
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,946,053
Total Expenditures $ 1,677,311
Fund Balance $ 268,742
General Fund Costs $ 1,946,053
% Funded by General Fund 116.0%
Total Staffing FTE
Program Overview
The Retiree Benefits program administers the City’s Other Post-Employment Benefits (OPEB).

Service Objectives
Provide investment oversight and appropriate funding for the City’s retiree medical liability. The City established a trust account with Public Agency Retirement Services (PARS) that will fund the future liability. Annual contributions from the City are deposited into the trust and invested in a portfolio of equity, bond, and money market funds.

Proposed Budget
It is recommended that City Council approve a budget of $1,677,311 for the Retiree Benefits program. This represents an increase of $68,266 (4.2%) from the FY 2024-25 Adopted Budget.

The number is based on the City's most current OPEB actuarial report.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Miscellaneous Revenue $ 1,385,759 $ - $ - $ -
Transfers In $ 9,898 $ - $ 1,592,398 $ 1,946,053
Total Revenues $ 1,395,657 $ - $ 1,592,398 $ 1,946,053
Expenditures
Employee Benefits $ 1,380,875 $ 1,387,959 $ 1,592,398 $ 1,662,000 Cost Allocation $ 14,782 $ 13,988 $ 16,647 $ 15,311
Total Expenditures $ 1,395,657 $ 1,401,947 $ 1,609,045 $ 1,677,311 Fund Balance $ - $ (1,401,947) $ (16,647) $ 268,742
General Fund Costs $ 9,898 $ - $ 1,592,398 $ 1,946,053
Staffing
FY 2025-26 Proposed Budget Administrative Services 257
316
CC 05-15-2025
316 of 655
Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Administrative Services 258
317
CC 05-15-2025
317 of 655
Insurance Administration
Budget Unit 100-44-417
General Fund - Human Resources - Insurance Administration Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,676,374
Total Expenditures $ 2,537,324
Fund Balance $ -
General Fund Costs $ 860,950
% Funded by General Fund 33.9%
Total Staffing 0.2 FTE
Program Overview
The Insurance Administration General Liability and Property programs and Employment Practices Law insurance.

Service Objectives
Provide the City with General Liability and Property Insurance Provide the City with Employment Practices Law Insurances Proposed Budget
It is recommended that City Council approve a budget of $2,537,324 for the Insurance Administration program. This represents an increase of $92,370 (3.8%) from the FY 2024-25 Adopted Budget.

The Increase is due to an increase in annual premiums for General Liability and Property Insurance claim expenses.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Administrative Services 259
318
CC 05-15-2025
318 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ - $ - $ 1,612,194 $ 1,676,374
Miscellaneous Revenue $ 1,689 $ - $ - $ -
Total Revenues $ 1,689 $ - $ 1,612,194 $ 1,676,374
Expenditures
Employee Compensation $ 21,635 $ 20,924 $ 21,469 $ 21,470 Employee Benefits $ 7,960 $ 8,550 $ 9,761 $ 8,820
Contract Services $ 1,476,879 $ 1,887,701 $ 2,381,478 $ 2,504,296 Cost Allocation $ 54,402 $ 50,696 $ 2,478 $ 2,738
Contingencies $ - $ - $ 29,768 $ -
Total Expenditures $ 1,560,876 $ 1,967,871 $ 2,444,954 $ 2,537,324 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 1,559,187 $ 1,967,870 $ 832,760 $ 860,950 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget HUMAN RESOURCES ANALYST II 0.10 0.10 0.10 0.10
HUMAN RESOURCES TECH 0.05 0.05 0.05 0.05
Total 0.15 0.15 0.15 0.15
FY 2025-26 Proposed Budget Administrative Services 260
319
CC 05-15-2025
319 of 655
Workers Compensation Insurance
Budget Unit 620-44-418
Workers' Compensation - Human Resources - Workers Compensation Insurance Budget at a Glance
2026 Proposed Budget
Total Revenues $ 553,531
Total Expenditures $ 495,813
Fund Balance $ 57,718
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.2 FTE
Program Overview
This program provides oversight of the Workers’ Compensation program, including claims, proactive Risk Management, return to work accommodations and excess workers compensation insurance. Additionally, this program is responsible for the administration of the City's self-insured unemployment insurance benefit account.

Service Objectives
Manage employee industrial injury and/or illness and provide proactive risk management programs to ensure employee safety in the workplace.

Monitor costs associated with claims.

Analyze and implement proactive measures to curtail costs.

Implement a return to work policy.

Manage and administer the City's unemployment insurance benefit account with the State of CA.

Proposed Budget
It is recommended that City Council approve a budget of $495,813 for the Workers Compensation Insurance program. This represents a decrease of $75,597 (-13.2%) from the FY 2024-25 Adopted Budget.

The overall decrease is due to a decrease in estimated workers compensation claim expenses. If any adjustments are needed in this program they will be brought to council for their consideration.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Administrative Services 261
320
CC 05-15-2025
320 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Other Financing Sources $ 436,462 $ - $ 468,984 $ 553,531 Total Revenues $ 436,462 $ - $ 468,984 $ 553,531
Expenditures
Employee Compensation $ 32,155 $ 33,526 $ 31,252 $ 31,252 Employee Benefits $ 10,482 $ 12,151 $ 13,166 $ 11,270
Contract Services $ 470,630 $ (38,356) $ 470,591 $ 400,840 Cost Allocation $ 28,369 $ 29,295 $ 50,519 $ 52,451
Contingencies $ - $ - $ 5,882 $ -
Total Expenditures $ 541,636 $ 36,616 $ 571,410 $ 495,813 Fund Balance $ (105,174) $ (36,615) $ (102,426) $ 57,718 General Fund Costs $ - $ - $ - $ -
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget HUMAN RESOURCES ANALYST II 0.20 0.20 0.20 0.20
Total 0.20 0.20 0.20 0.20
There are no changes to the current levels of staffing.

FY 2025-26 Proposed Budget Administrative Services 262
321
CC 05-15-2025
321 of 655
Long Term Disability
Budget Unit 641-44-419
Compensated Absence/LTD - Human Resources - Long Term Disability Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 130,875
Fund Balance $ (130,875)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
This program oversees claims and premiums associated with Long Term Disability.

Service Objectives
Obtain and manage insurance policies
Negotiate rates
Coordinate claims
Proposed Budget
It is recommended that City Council approve a budget of $130,875 for the Long Term Disability program. This represents an increase of $20,546 (18.6%) from the FY 2024-25 Adopted Budget.

The increase is due to a monthly premium expense associated with providing a contracted benefit for full-time employees.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ 97,976 $ 98,820 $ 108,000 $ 130,000 Cost Allocation $ 2,767 $ 2,381 $ 979 $ 875
Contingencies $ - $ - $ 1,350 $ -
Total Expenditures $ 100,743 $ 101,201 $ 110,329 $ 130,875 Fund Balance $ (100,743) $ (101,201) $ (110,329) $ (130,875) General Fund Costs $ - $ - $ - $ -
Staffing
FY 2025-26 Proposed Budget Administrative Services 263
322
CC 05-15-2025
322 of 655
Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Administrative Services 264
323
CC 05-15-2025
323 of 655
Compensated Absences
Budget Unit 641-44-420
Compensated Absence/LTD - Human Resources - Compensated Absences Budget at a Glance
2026 Proposed Budget
Total Revenues $ 670,000
Total Expenditures $ 655,877
Fund Balance $ 14,123
General Fund Costs $ 670,000
% Funded by General Fund 102.2%
Total Staffing FTE
Program Overview
This program provides for payment of liabilities associated with employees retiring or leaving service.

Service Objectives
Properly account and disburse benefits as set forth in the employee contracts.

Proposed Budget
It is recommended that City Council approve a budget of $655,877 for the Compensated Absences program. This represents a decrease of $71,860 (-9.9%) from the FY 2024-25 Adopted Budget.

This decrease is reflective of the estimated number of employees eligible to cash out leave balances due to constructive receipts, retirements, resignations, and other types of separation from the City. Under Internal Revenue Service ("IRS") Regulations, the IRS considers income to be received for tax purposes if the individual actually receives it or has an option to receive it during the tax year. This is known as the constructive receipt doctrine.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Transfers In $ 882,000 $ 380,000 $ 591,000 $ 670,000
Total Revenues $ 882,000 $ 380,000 $ 591,000 $ 670,000
Expenditures
Contract Services $ 518,393 $ 665,754 $ 716,000 $ 644,400 Cost Allocation $ 8,280 $ 4,090 $ 11,737 $ 11,477
Total Expenditures $ 526,673 $ 669,844 $ 727,737 $ 655,877 Fund Balance $ 355,327 $ (289,844) $ (136,737) $ 14,123 General Fund Costs $ 882,000 $ 380,000 $ 591,000 $ 670,000 Staffing
FY 2025-26 Proposed Budget Administrative Services 265
324
CC 05-15-2025
324 of 655
Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Administrative Services 266
325
CC 05-15-2025
325 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Administrative Services 267
326
CC 05-15-2025
326 of 655
Parks and Recreation
FY 2025-26 Proposed Budget Parks and Recreation 268
327
CC 05-15-2025
327 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Parks and Recreation 269
328
CC 05-15-2025
328 of 655
Department Overview
Budget Units
Budget Unit Program 2026 Proposed Budget
Parks and Recreation $ 1,564,405
100-60-601 Recreation Administration $ 1,564,405
100-60-636 Library Services $ -
Business and Community Services $ 1,426,527
100-61-602 Administration $ 532,187
100-61-605 Cultural Events $ 439,791
100-61-630 Facilities $ 454,549
Recreation and Education $ 3,662,618
100-62-608 Administration $ 784,167
580-62-613 Youth Teen Recreation $ 1,797,833
100-62-623 Senior Center $ 729,356
100-62-639 Teen Programs $ 255,582
100-62-640 Events $ 95,680
Sports, Safety and Outdoor Recreation $ 4,534,680
100-63-612 Park Facilities $ 1,518,999
100-63-615 Administration $ -
560-63-616 Blackberry Farm Golf Course $ 547,098
580-63-620 Outdoor Recreation $ 873,146
570-63-621 Sports Center Operations $ 1,595,437
Office of Emergency Services $ 920,136
100-65-632 Community Outreach and Neighborhood Watch $ 225,076 100-65-633 Office of Emergency Management $ 695,060
Total $ 12,108,366
FY 2025-26 Proposed Budget Parks and Recreation 270
329
CC 05-15-2025
329 of 655
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 5,230,479
Total Expenditures $ 12,108,366
Fund Balance $ (458,514)
General Fund Costs $ 6,919,373
% Funded by General Fund 57.1%
Total Staffing 30.6 FTE
Organization
Rachelle Sander, Director of Parks and Recreation
Notable Accomplishments
rd rd
FY 2025-26 Proposed Budget Parks and Recreation 271
330
CC 05-15-2025
330 of 655
3 Grade Creek Tours – Expanded 3 Grade Creek Tours from 13 to 24 visits, accommodating 11 more classes and 178 additional students. This provides more hands-on environmental education opportunities for local students.

Added Teen Volunteer Opportunities – Expanded volunteer opportunities for teens by establishing the Recreation Event Volunteers (REV) program where teens could volunteer to provide support for city-run events throughout the year, such as Monster Mash, Breakfast with Santa, Sweetheart Social, Big Bunny 5K, Earth and Arbor Day, and more.

Classes/Camps Offered – Offered 3,180 classes and camps for all ages and covering various subjects.

Community Events – Coordinated 62 recreational events throughout the year to enhance the lives and experiences for community members.

Community Funding – City funding provided to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. The City received 15 applications for the FY 2025-2026 application cycle. The Parks and Recreation Commission evaluated applications in April and provided a recommendation regarding funding to City Council for final approval.

Hidden Treasures 2024 – Proceeds from the Hidden Treasures event support the Stay Active Fund, which helps pay for Senior Center memberships and programs for seniors in need of financial assistance. 44 volunteers donated over 1,300 hours for the event, and over $14,800 worth of donated items were sold.

Monster Mash 2024 – Hosted and enhanced the annual Monster Mash, a Halloween themed night filled with costumes, trick- or-treating, craVs, and ghostly games. The event had 210 kids registered with an estimated total of 600 in aDendance including family members.

Poet Laureate Playbook – The Poet Laureate program’s vision is to stimulate cultural and literary awareness in Cupertino, introduce youth and adults to the personal and community benefits of poetry, and promote our Library as a cultural center in Cupertino. The Cupertino Poet Laureate Playbook was updated on December 4, 2024, to streamline processes, outline clear expectations, and expand applicant qualifications for the selection of a Poet Laureate, a two-year honorary appointment as the literary ambassador for the City.

Pooch Plunge (Spring) – Due to the demand and waitlists, a second Pooch Plunge event was hosted in the Spring.

Registrations have reached full capacity, with a total of 160 pups enrolled.

Revamped Preschool Program – In response to the current mandate set by local school districts, the format of the Preschool program was revised to lower the current age group and to mix age groups together. This provided more flexibility for parents in choosing which days to enroll their preschoolers.

Senior Center Memberships – Added over 200 additional memberships since last year, for a total of 1,742 active memberships to date.

Senior Travel Program – Expanded the Travel Program to offer at least 24 day trips per year and negotiated a contract to reinstate long distance excursions. Over 1,000 total registrants expected by the end of the year for this program.

Sponsorships for Events – Negotiated and received over $35,000 in sponsorships with external organizations to support the events offered by the Department.

Sports Center Members and Usage – Increased the current active memberships at the Sports Center to 1,641, with an average of 2,200 check-ins per week. The Center currently offers 25 fitness classes per week and two additional personal trainers were recruited to meet the increasing demand from members.

Swim Lessons – Increased swim lesson offerings at Blackberry Farm from 409 to 578 lessons to meet the growing demand for swim instruction programs in the community.

Teen Resource Fair 2025 – Partnered with Fremont Union High School District Interdistrict Council and Main Street to host the second annual Teen Resource Fair, which showcased potential volunteering and job opportunities for teens. The event also offered multiple mental health and wellness booth resources, a passport activity, and goodie bag for aDendees. About 300 teens were in attendance.

New Initiatives
Enhance Senior Support Services – Explore opportunities to partner with external agencies to offer more services for the senior community, such as case management, tax-aid, and health screenings for blood pressure and hearing.

Expand Lap Swim – Expand lap swim sessions at Blackberry Farm to include weekday mornings and evenings, offering swimmers greater flexibility and access to the pools.

Further Develop Intergenerational Engagement – Offer new opportunities for youth, adults, and seniors to engage and interact through recreational activities. Currently planned programs include a Golf Scramble Tournament and a Hawaiian-themed event.

Increase So5ball League Offerings – Increase adult soVball league to four nights per week, and begin offering one additional season per year, for a total of three seasons.
rd rd
FY 2025-26 Proposed Budget Parks and Recreation 272
331
CC 05-15-2025
331 of 655
Expand Personal Training Offerings – Reconfiguration of underutilized space at the Sports Center to offer more room and resources for its increasingly popular Personal Training program.

FY 2025-26 Proposed Budget Parks and Recreation 273
332
CC 05-15-2025
332 of 655
Performance Measures
Goal: Create a positive, healthy and connected community.

Benefit: Cupertino has an exceptional system of parks and services that align with community values.

Performance Measure
FY 2023
July-June
FY 2024
July-June
FY 2025
July-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% % Department's total cost recovery for all (direct and indirect) costs 55% 56% 53% 40% % change in participants 16% 13% 14% 1%
FY 2025-26 Proposed Budget Parks and Recreation 274
333
CC 05-15-2025
333 of 655
Workload Indicators
Business and Community Services Division
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-Dec
Number of reservations at Quinlan Center 405 426 202
Number of festival applications received 10 9 9
Recreation and Education Division
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-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 Division
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-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
Proposed Budget
It is recommended that City Council approve a budget of $12,108,366 for the Parks and Recreation department. This represents an increase of $1,196,999 (11.0%) from the FY 2024-25 Adopted Budget.

The increase is primarily due to the transfer in of the Office of Emergency Management from the Administration department. In addition, the department is requesting $96,055 in additional budget requests for various purchases and other services as described in the program narratives. Also, this department has the following City Work Program items:

Enhance Senior Services - $65,000
Emergency Operations Readiness - $40,000
In addition, contingency dollars have been calculated off of department's FY 2025-2026 base budget materials and contracts and have been consolidated into materials.

For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY FY 2025-26 Proposed Budget Parks and Recreation 275
334
CC 05-15-2025
334 of 655
2025-26 base budget materials and contracts and have been consolidated into materials budgets.

Citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference.

Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories.

FY 2025-26 Proposed Budget Parks and Recreation 276
335
CC 05-15-2025
335 of 655
Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

37.5%

30.2%

12.9%

11.8%

7.6%
Sports, Safety and Outdoor Recreation
Recreation and Education
Parks and Recreation
Business and Community Services
Office of Emergency Services
$10.6M $10.9M $10.9M
$12.1M
2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Parks and Recreation 277
336
CC 05-15-2025
336 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Use of Money and Property $ 790,052 $ 868,070 $ 840,420 $ 711,529 Intergovernmental Revenue $ - $ 3,750 $ - $ 11,000
Charges for Services $ 5,261,531 $ 4,989,583 $ 3,972,770 $ 3,975,450 Miscellaneous Revenue $ 27,411 $ 46,001 $ 29,500 $ 32,500 Transfers In $ 376,000 $ - $ - $ 500,000
Total Revenues $ 6,454,994 $ 5,907,404 $ 4,842,690 $ 5,230,479 Expenditures
Employee Compensation $ 3,702,914 $ 3,920,700 $ 4,173,717 $ 4,950,998 Employee Benefits $ 857,890 $ 1,601,222 $ 1,642,726 $ 1,682,278 Materials $ 453,490 $ 359,064 $ 414,267 $ 615,287
Contract Services $ 3,921,765 $ 3,243,996 $ 2,260,314 $ 2,145,863 Cost Allocation $ 1,559,137 $ 1,681,979 $ 2,322,642 $ 2,484,838 Special Projects $ 30,092 $ 3,529 $ - $ 105,000
Other Financing Uses $ 64,377 $ 90,137 $ 64,377 $ 124,102 Contingencies $ - $ - $ 33,324 $ -
Total Expenditures $ 10,589,665 $ 10,900,627 $ 10,911,367 $ 12,108,366 Fund Balance $ 695,252 $ (318,331) $ (610,426) $ (458,514) General Fund Costs $ 5,205,925 $ 4,674,887 $ 5,458,251 $ 6,919,373 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 278
337
CC 05-15-2025
337 of 655
Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.90 0.90 0.90 0.90
ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0 0.95
ASST DIR RECREATION COMM SVCS 0.85 0 0 0
COMMS AND MARKETING COORDINATOR 0 0 0 1.00
COMMUNITY OUTREACH SPECIALIST 2.00 1.00 1.00 0
DIRECTOR OF PARKS REC 0.95 1.00 1.00 1.00
EMERGENCY SERVICES COORDINATOR 0 0 0 1.00
EMERGENCY SERVICES MANAGER 0 0 0 1.00
FACILITY ATTENDANT 3.00 3.00 3.00 3.00
MANAGEMENT ANALYST 2.00 1.00 1.00 1.00
OFFICE ASSISTANT 2.00 2.00 2.00 2.00
RECREATION COORDINATOR 9.88 9.88 9.88 9.88
RECREATION MANAGER 1.90 3.85 3.85 3.85
RECREATION SUPERVISOR 2.00 0 0 0
SENIOR MANAGEMENT ANALYST 0 1.00 1.00 1.00
SR OFFICE ASSISTANT 4.00 4.00 4.00 4.00
Total 29.48 27.63 27.63 30.58
FY 2025-26 Proposed Budget Parks and Recreation 279
338
CC 05-15-2025
338 of 655
Recreation Administration
Budget Unit 100-60-601
General Fund - Parks and Recreation - Recreation Administration Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 1,564,405
Fund Balance $ -
General Fund Costs $ 1,564,405
% Funded by General Fund 100.0%
Total Staffing 4.9 FTE
Program Overview
The Recreation Administration program provides overall department administration, project management, community outreach, support to the Parks and Recreation, Library, Teen, and Public Safety Commissions, and administration of recreation management software.

Service Objectives
Provide overall department administration, budget control, contract support, policy development, administration of recreation management software, and employee development and evaluation.

Support the Planning and Public Works Departments in the development, renovation, outreach for, and improvements of parks and open spaces in conjunction with the Parks and Recreation System Master Plan.

Monitor and facilitate partnerships with other community organizations.

Perform outreach to the community regarding Parks and Recreation programs, events, and services.

Pursue additional financial support in scholarships and grants from local organizations and Federal and State governments.

Proposed Budget
It is recommended that City Council approve a budget of $1,564,405 for the Recreation Administration program. This represents an increase of $140,812 (9.9%) from the FY 2024-25 Adopted Budget.

Reduction in benefits is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings.

The increase is primarily driven by City Work Program items included in this budget:

Enhance Senior Services $65,000and $40,000
Emergency Operations Readiness $40,000
CWP items are no longer considered Special Projects per the new City Council Special Project Policy but are discussed here for ease of tracking and transparency. CWP will remain in the Special Project expense category as a way to track these projects but will be reported separately from all other Special Projects that fall under the policy.

Revenues and Expenditures
FY 2025-26 Proposed Budget Parks and Recreation 280
339
CC 05-15-2025
339 of 655
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 700,257 $ 753,606 $ 814,896 $ 847,667 Employee Benefits $ 250,509 $ 278,978 $ 326,474 $ 288,660 Materials $ 132,181 $ 130,552 $ 134,335 $ 159,430
Contract Services $ 62,898 $ 62,731 $ 60,799 $ 69,857
Cost Allocation $ - $ - $ 84,659 $ 93,791
Special Projects $ 30,092 $ 3,529 $ - $ 105,000
Contingencies $ - $ - $ 2,430 $ -
Total Expenditures $ 1,175,937 $ 1,229,396 $ 1,423,593 $ 1,564,405 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 1,175,939 $ 1,229,395 $ 1,423,593 $ 1,564,405 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.90 0.90 0.90 0.90
ASST DIR RECREATION COMM SVCS 0.85 0 0 0
COMMS AND MARKETING COORDINATOR 0 0 0 1.00
COMMUNITY OUTREACH SPECIALIST 2.00 1.00 1.00 0
DIRECTOR OF PARKS REC 0.95 1.00 1.00 1.00
MANAGEMENT ANALYST 2.00 1.00 1.00 1.00
SENIOR MANAGEMENT ANALYST 0 1.00 1.00 1.00
Total 6.70 4.90 4.90 4.90
There are no changes to the current level of staffing. A Community Outreach Specialist position was reclassified as a Communications and Marketing Coordinator based on the duties and tasks assigned to that position.

FY 2025-26 Proposed Budget Parks and Recreation 281
340
CC 05-15-2025
340 of 655
Library Services
Budget Unit 100-60-636
General Fund - Parks and Recreation - Library Services
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
This budget augments the existing library service currently provided to our community through the Santa Clara County (SCC) Library Joint Powers Authority.

Service Objectives
Provide increased library service for our constituents through support of 12 additional operational hours per week.

Explore partnerships with the SCC Library for recreation and community programs.

Proposed Budget
There is no budget requested for this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Cost Allocation $ 180,814 $ 169,698 $ 160,427 $ -
Total Expenditures $ 180,814 $ 169,698 $ 160,427 $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 180,814 $ 169,698 $ 160,427 $ -
Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Parks and Recreation 282
341
CC 05-15-2025
341 of 655
Administration
Budget Unit 100-61-602
General Fund - Business and Community Services - Administration Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 532,187
Fund Balance $ -
General Fund Costs $ 532,187
% Funded by General Fund 100.0%
Total Staffing 3.0 FTE
Program Overview
The Youth, Teen, Events, and Facilities Division supports department programs and services through the provision of customer service and analytical support, development, and administration of policies. The division is also responsible for the department's front-line communication with the public for classes, programs, facility information, and general inquiries, manages the Quinlan Community Center (QCC) and rentals of facilities and park picnic areas, and processes registrations for classes, camps, and events.

Service Objectives
Provide first-rate customer service through the implementation of consistent policies, procedures, and performance standards.

Administer recreation software system for customer registration, memberships, point-of-sale, and facility rentals.

Collect and analyze data from customer satisfaction surveys and program and revenue reports to improve programs and services.

Ensure the delivery of clear and up to date communication on current programs and events to community members.

Issue parks and facilities permits for individual customers as well as community festivals and events that promote our diverse culture and connected community.

Maintain a positive relationship with neighborhoods adjacent to our facilities and parks.

Proposed Budget
It is recommended that City Council approve a budget of $532,187 for the Administration program. This represents a decrease of $6,524 (-1.2%) from the FY 2024-25 Adopted Budget.

This budget is relatively unchanged from the prior fiscal year.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 283
342
CC 05-15-2025
342 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 283,910 $ 252,998 $ 257,101 $ 260,829 Employee Benefits $ 138,473 $ 133,059 $ 154,941 $ 145,194 Materials $ 1,210 $ 754 $ 1,400 $ 1,578
Cost Allocation $ 187,222 $ 184,545 $ 125,251 $ 124,586 Contingencies $ - $ - $ 18 $ -
Total Expenditures $ 610,815 $ 571,356 $ 538,711 $ 532,187 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 610,815 $ 571,356 $ 538,711 $ 532,187 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget OFFICE ASSISTANT 1.00 1.00 1.00 1.00
RECREATION COORDINATOR 0.35 0 0 0
SR OFFICE ASSISTANT 2.00 2.00 2.00 2.00
Total 3.35 3.00 3.00 3.00
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Parks and Recreation 284
343
CC 05-15-2025
343 of 655
Cultural Events
Budget Unit 100-61-605
General Fund - Business and Community Services - Cultural Events Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 439,791
Fund Balance $ -
General Fund Costs $ 439,791
% Funded by General Fund 100.0%
Total Staffing 1.3 FTE
Program Overview
The Youth, Teen, Events, and Facilities Division's events program produces the City's special events including 4th of July festivities and those hosted at Memorial Park, other local parks, and Quinlan Community Center including the Summer Concert Series, Movies in the Park, Shakespeare in the Park, and Tree Lighting. Staff also serve as the liaison, issue permits, and work with event organizers to implement community festivals, based on the City's festival policies. Examples of festivals at Memorial Park include the Cherry Blossom Festival, Rotary Day N Night Festival, Kids N' Fun, Diwali Festival, Ikebana Flower Show Festival, Bhubaneswar Sister City's India Heritage Fair, Dilli Haat, Holi, and more.

Service Objectives
Provide a summer concert series at Memorial Park.

Provide outdoor summer movies in other local parks.

Partner with the San Francisco Shakespeare Company to produce Shakespeare in the Park in Cupertino.

Organize and facilitate the 4th of July Independence Day morning celebration.

Bring the community together with the annual Tree Lighting celebration.

Serve as liaison and issue special event permits to nonprofit organization event producers to ensure successful community and cultural festivals in Memorial Park and Civic Center Plaza.

Proposed Budget
It is recommended that City Council approve a budget of $439,791 for the Cultural Events program. This represents an increase of $111,969 (34.2%) from the FY 2024-25 Adopted Budget.

The increase is mainly due to re-budgeted funds and reallocated staffing to support the Shakespeare in the Park program, along with added support for the annual Tree Lighting event. The Big Bunny 5K and Earth and Arbor Day Festival budgets were transferred to 100-62-640, while the Summer Concert Series and Movies in the Park budget was moved from that account.

Recurring costs for this program include $30,000 for Shakespeare in the Park, $38,235 for festivals, $10,000 for Tree Lights Installation and Removal, and $12,000 for Santa Suits
FY 2025-26 Proposed Budget Parks and Recreation 285
344
CC 05-15-2025
344 of 655
For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ - $ 3,750 $ - $ -
Miscellaneous Revenue $ 26,047 $ 38,291 $ 29,500 $ -
Total Revenues $ 26,047 $ 42,041 $ 29,500 $ -
Expenditures
Employee Compensation $ 111,329 $ 124,268 $ 122,520 $ 169,081 Employee Benefits $ 39,218 $ 46,371 $ 52,631 $ 58,187
Materials $ 20,015 $ 20,409 $ 19,222 $ 8,784
Contract Services $ 199,163 $ 113,476 $ 74,121 $ 149,535 Cost Allocation $ 54,537 $ 81,970 $ 58,210 $ 54,204
Contingencies $ - $ - $ 1,118 $ -
Total Expenditures $ 424,262 $ 386,494 $ 327,822 $ 439,791 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 398,216 $ 344,453 $ 298,322 $ 439,791 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget RECREATION COORDINATOR 0.65 0.75 0.75 1.00
RECREATION MANAGER 0.25 0.25 0.25 0.25
Total 0.90 1.00 1.00 1.25
Staffing has been reallocated based on the current duties and assignments within the program.

FY 2025-26 Proposed Budget Parks and Recreation 286
345
CC 05-15-2025
345 of 655
Facilities
Budget Unit 100-61-630
General Fund - Business and Community Services - Facilities Budget at a Glance
2026 Proposed Budget
Total Revenues $ 182,988
Total Expenditures $ 454,549
Fund Balance $ -
General Fund Costs $ 271,561
% Funded by General Fund 59.7%
Total Staffing 1.3 FTE
Program Overview
The Quinlan Community Center houses the administrative office of the Parks and Recreation Department and serves as facility space for rentals and a variety of recreational, social, and community activities. The Creekside Park building provides community members with facility space which can be used for a variety of activities.

Service Objectives
Quinlan Community Center
Provide a rental facility for community meetings, business functions, social events, and other similar activities.

Offer in-person and online registration for recreation programs.

Schedule facility space for contractual and staff-run classes and camps.

House the Cupertino Historical Society.

Serve as an Emergency Operations Shelter in case of disasters.

Creekside Park Building:

Provide a park or picnic facility for nonprofit board meetings, parties, school group picnics, memorials, and other similar activities.

Schedule facility space for contractual and staff-run classes and camps.

Provide space for a year-round farmers' market.

Proposed Budget
It is recommended that City Council approve a budget of $454,549 for the Facilities program. This represents an increase of $175,947 (63.2%) from the FY 2024-25 Adopted Budget.

This increase is primarily due to increase in costs allocation charges.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 287
346
CC 05-15-2025
346 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Use of Money and Property $ 158,974 $ 221,710 $ 162,000 $ 181,988 Charges for Services $ 59,962 $ 40,820 $ - $ 1,000
Total Revenues $ 218,936 $ 262,530 $ 162,000 $ 182,988
Expenditures
Employee Compensation $ 241,769 $ 253,681 $ 175,013 $ 182,356 Employee Benefits $ 83,386 $ 87,539 $ 58,641 $ 57,012
Materials $ 16,524 $ 16,356 $ 17,133 $ 20,811
Contract Services $ 4,422 $ 4,649 $ 6,867 $ 6,867
Cost Allocation $ - $ - $ 20,648 $ 187,503
Contingencies $ - $ - $ 300 $ -
Total Expenditures $ 346,101 $ 362,225 $ 278,602 $ 454,549 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 127,164 $ 99,694 $ 116,602 $ 271,561 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FACILITY ATTENDANT 2.00 2.00 1.00 1.00
RECREATION MANAGER 0.25 0.25 0.25 0.25
Total 2.25 2.25 1.25 1.25
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Parks and Recreation 288
347
CC 05-15-2025
347 of 655
Administration
Budget Unit 100-62-608
General Fund - Recreation and Education - Administration Budget at a Glance
2026 Proposed Budget
Total Revenues $ 74,925
Total Expenditures $ 784,167
Fund Balance $ -
General Fund Costs $ 709,242
% Funded by General Fund 90.4%
Total Staffing 4.0 FTE
Program Overview
This program includes administrative support of senior programs offered at the Senior Center. Administrative duties support the facility and senior programs that focus on enhancing a healthy lifestyle through quality education, recreation, travel, socials, community resources, volunteer opportunities, and facility rentals. This program also manages Community Hall, which provides space for City Council meetings and various Commission meetings, as well as facility rental space available for a variety of activities including business meetings, community events, and Cupertino Library programs.

Service Objectives
Provide management and supervision of all programs, activities, personnel, and facilities within the Senior Wellness division.

Establish program goals and priorities.

Ensure operational hours accommodate community desires.

Provide first-rate customer service and manage customer registration, memberships, point-of-sale, and facility rentals at the Senior Center.

Community Hall
Provide a rental facility for community meetings, business functions, social events, and other similar activities.

Provide a facility for City Channel programming, and City Council, Planning Commission, and other City meetings.

Proposed Budget
It is recommended that City Council approve a budget of $784,167 for the Administration program. This represents a decrease of $14,684 (-1.8%) from the FY 2024-25 Adopted Budget.

The budget is relatively unchanged from the prior fiscal year.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 289
348
CC 05-15-2025
348 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Use of Money and Property $ 28,954 $ 41,515 $ 42,000 $ 74,825 Charges for Services $ - $ 500 $ - $ 100
Total Revenues $ 28,954 $ 42,015 $ 42,000 $ 74,925
Expenditures
Employee Compensation $ 320,436 $ 345,432 $ 449,389 $ 469,893 Employee Benefits $ 113,189 $ 126,475 $ 194,902 $ 172,088 Materials $ 8,961 $ 9,595 $ 7,337 $ 12,472
Contract Services $ 501 $ 2,435 $ 4,990 $ 5,112
Cost Allocation $ 169,903 $ 158,361 $ 142,079 $ 124,602 Contingencies $ - $ - $ 154 $ -
Total Expenditures $ 612,990 $ 642,298 $ 798,851 $ 784,167 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 584,036 $ 600,283 $ 756,851 $ 709,242 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FACILITY ATTENDANT 1.00 1.00 2.00 2.00
RECREATION COORDINATOR 0.30 0.20 0.20 0.20
RECREATION MANAGER 0 0.75 0.75 0.75
RECREATION SUPERVISOR 0.75 0 0 0
SR OFFICE ASSISTANT 1.00 1.00 1.00 1.00
Total 3.05 2.95 3.95 3.95
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Parks and Recreation 290
349
CC 05-15-2025
349 of 655
Youth Teen Recreation
Budget Unit 580-62-613
Recreation Program - Recreation and Education - Youth Teen Recreation Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,300,000
Total Expenditures $ 1,797,833
Fund Balance $ (497,833)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 1.7 FTE
Program Overview
This program encompasses fee-based youth and teen programs such as academic and enrichment classes, STEAM programming, recreational camps, preschool, fee-based events such as Monster Mash, Breakfast with Santa, and Santa Visits, enrichment classes for adults, and special interest programming.

Service Objectives
Provide a preschool program, summer camps, and an extensive variety of contract classes for youth, teens, and adults.

Promote programs through social media to increase community awareness and interest in programs.

Increase the number of youth and teen Science, Technology, Engineering, Art, and Math (STEAM) programs offered.

Expand all-day summer camp offerings to meet daycare needs of working families.

Provide family-oriented programs designed to increase community engagement.

Provide safe, fun, life-long learning activities that promote the foundations of self-confidence, skill development, and personal growth.

Proposed Budget
It is recommended that City Council approve a budget of $1,797,833 for the Youth Teen Recreation program. This represents an increase of $204,884 (12.9%) from the FY 2024-25 Adopted Budget.

The increase is due to rising costs for Contract Services, as registrations for classes and camps have been growing and there has been an increase in participation of contracted programs. This also leads to an increase in anticipated revenues for this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 291
350
CC 05-15-2025
350 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Use of Money and Property $ 252 $ 384 $ - $ -
Charges for Services $ 1,155,760 $ 1,365,285 $ 1,155,500 $ 1,300,000 Miscellaneous Revenue $ 79 $ - $ - $ -
Total Revenues $ 1,156,091 $ 1,365,669 $ 1,155,500 $ 1,300,000 Expenditures
Employee Compensation $ 324,485 $ 278,516 $ 346,808 $ 361,759 Employee Benefits $ (30,857) $ 157,523 $ 115,052 $ 107,288 Materials $ 22,818 $ 20,802 $ 20,818 $ 37,201
Contract Services $ 640,163 $ 798,109 $ 761,226 $ 909,518 Cost Allocation $ 111,417 $ 168,316 $ 315,740 $ 328,541 Other Financing Uses $ 23,529 $ 30,212 $ 23,529 $ 53,526 Contingencies $ - $ - $ 9,776 $ -
Total Expenditures $ 1,091,555 $ 1,453,478 $ 1,592,949 $ 1,797,833 Fund Balance $ 64,536 $ (87,810) $ (437,449) $ (497,833) General Fund Costs $ - $ - $ - $ -
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget RECREATION COORDINATOR 1.50 1.50 1.50 1.50
RECREATION MANAGER 0.20 0.20 0.20 0.20
Total 1.70 1.70 1.70 1.70
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Parks and Recreation 292
351
CC 05-15-2025
351 of 655
Senior Center
Budget Unit 100-62-623
General Fund - Recreation and Education - Senior Center Budget at a Glance
2026 Proposed Budget
Total Revenues $ 350,000
Total Expenditures $ 729,356
Fund Balance $ -
General Fund Costs $ 379,356
% Funded by General Fund 52.0%
Total Staffing 2.1 FTE
Program Overview
This program includes the coordination and delivery of program services for seniors at the Senior Center. Staff coordinates a well- maintained Senior Center for adults age 50+ including senior adult recreation programs such as enrichment classes, educational presentations, group trips and tours, and social events. In addition, the Senior Center team leverages members to support programs and services through volunteer opportunities. Staff provides referrals for resources available to seniors.

Service Objectives
Enhance partnerships with the Santa Clara County Library District and other local nonprofit agencies.

Provide appreciation events for senior volunteers who support the Parks and Recreation Department throughout the year.

Offer fitness and enrichment courses, educational presentations, group trips and tours, and socialization opportunities to adults age 50+.

Provide volunteer service opportunities for adults age 50+.

Provide a senior-focused annual health fair and senior resource referrals.

Proposed Budget
It is recommended that City Council approve a budget of $729,356 for the Senior Center program. This represents an increase of $42,855 (6.2%) from the FY 2024-25 Adopted Budget.

The increase is due a reallocation of staffing, based on the current assignment of duties within this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 293
352
CC 05-15-2025
352 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 186,720 $ 300,510 $ 220,000 $ 350,000 Miscellaneous Revenue $ 85 $ 7,700 $ - $ -
Total Revenues $ 186,805 $ 308,210 $ 220,000 $ 350,000
Expenditures
Employee Compensation $ 303,157 $ 250,259 $ 261,929 $ 300,449 Employee Benefits $ 111,075 $ 86,271 $ 92,343 $ 88,421
Materials $ 103,320 $ 74,000 $ 88,554 $ 101,163
Contract Services $ 61,048 $ 91,237 $ 118,104 $ 117,500 Cost Allocation $ 228,854 $ 183,730 $ 122,988 $ 121,823 Contingencies $ - $ - $ 2,583 $ -
Total Expenditures $ 807,454 $ 685,497 $ 686,501 $ 729,356 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 620,649 $ 377,287 $ 466,501 $ 379,356 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget RECREATION COORDINATOR 2.70 1.80 1.60 1.80
RECREATION MANAGER 0 0.25 0.25 0.25
RECREATION SUPERVISOR 0.25 0 0 0
Total 2.95 2.05 1.85 2.05
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Parks and Recreation 294
353
CC 05-15-2025
353 of 655
Teen Programs
Budget Unit 100-62-639
General Fund - Recreation and Education - Teen Programs Budget at a Glance
2026 Proposed Budget
Total Revenues $ 9,550
Total Expenditures $ 255,582
Fund Balance $ -
General Fund Costs $ 246,032
% Funded by General Fund 96.3%
Total Staffing 0.8 FTE
Program Overview
This program supports teen programs and services for the Youth, Teens, Events, and Facilities Division. It provides the supervision and support for the Youth Activity Board (YAB), which implements teen focused events, the Leaders in Training (LIT) summer volunteer program, and Recreation Event Volunteers (REV) who support city-wide special events. Examples of teen events include the Cupertino Café, <hack> Cupertino, Pizza and Politics, Teen Resource Fair, Teen Speaker Series, and the teen movie nights. This program also oversees the Monta Vista Recreation Center, which provides additional facility space for youth and teen programs and is home to a diverse array of recreation activities including gymnastics classes.

Service Objectives
Empower youth by creating enriching and stress-free programs that foster physical, mental, and social development.

Provide space for Cupertino Teens to de-stress, create, study, and to socially develop.

Create opportunities for youth and teens to build their leadership abilities by creating activities, events, and programs by teens for teens.

Create reciprocal engagement and outreach efforts between the City of Cupertino and Cupertino teens.

Provide the opportunity for teens to gain applied skills and develop leadership abilities by participating in teen volunteer programs.

Create programs that support mental health and wellness in youth and teens.

Monta Vista Recreation Center:

Provide space to host gymnastics, class, and camps.

Provide space for contractual and staff-run classes and camps.

Make space available for co-sponsored clubs and rentals.

Proposed Budget
It is recommended that City Council approve a budget of $255,582 for the Teen Programs program. This represents a decrease of $8,220 (-3.1%) from the FY 2024-25 Adopted Budget.

The budget is relatively unchanged from the prior fiscal year.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 295
354
CC 05-15-2025
354 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Use of Money and Property $ - $ 7,950 $ 8,000 $ 8,200
Charges for Services $ - $ 2,573 $ 670 $ 1,350
Total Revenues $ - $ 10,523 $ 8,670 $ 9,550
Expenditures
Employee Compensation $ 92,087 $ 109,392 $ 147,034 $ 149,250 Employee Benefits $ 29,995 $ 34,295 $ 44,710 $ 40,328
Materials $ 25,752 $ 13,620 $ 16,185 $ 17,176
Contract Services $ 3,687 $ - $ 2,800 $ -
Cost Allocation $ 46,734 $ 75,491 $ 52,836 $ 48,828
Contingencies $ - $ - $ 237 $ -
Total Expenditures $ 198,255 $ 232,798 $ 263,802 $ 255,582 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 198,255 $ 222,274 $ 255,132 $ 246,032 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget RECREATION COORDINATOR 0.50 0.50 0.50 0.50
RECREATION MANAGER 0.25 0.25 0.25 0.25
Total 0.75 0.75 0.75 0.75
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Parks and Recreation 296
355
CC 05-15-2025
355 of 655
Events
Budget Unit 100-62-640
General Fund - Recreation and Education - Events
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 40,000
Total Expenditures $ 95,680
Fund Balance $ -
General Fund Costs $ 55,680
% Funded by General Fund 58.2%
Total Staffing 0.2 FTE
Program Overview
This program provides the coordination and production of several City-wide events, such as the Big Bunny 5K and Earth and Arbor Day Festival, along with other unique events such as the Cupertino Campout, Pooch Plunge, and Signing Santa. These events are coordinated within the Parks and Recreation Department and hosted in various locations throughout the City.

Service Objectives
Organize and facilitate the Big Bunny 5K fun run.

Organize and facilitate the Earth and Arbor Day Festival.

Organize and facilitate other special events such as the Cupertino Campout, Pooch Plunge, and Signing Santa.

To provide activities for kids and families of all ages.

Proposed Budget
It is recommended that City Council approve a budget of $95,680 for the Events program. This represents a decrease of $10,606 (-

10.0%) from the FY 2024-25 Adopted Budget.

The decrease is due to the reallocation of staffing based on the current distribution of duties. The Big Bunny 5K and Earth and Arbor Day Festival program budgets were transferred from 100-61-605, while the Summer Concert Series and Movies in the Park were transferred to 100-61-605.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 297
356
CC 05-15-2025
356 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ - $ - $ 6,000 $ 7,500
Miscellaneous Revenue $ - $ - $ - $ 32,500
Total Revenues $ - $ - $ 6,000 $ 40,000
Expenditures
Employee Compensation $ 18,422 $ 39,513 $ 45,194 $ 19,227 Employee Benefits $ (517) $ 11,039 $ 13,206 $ 7,313
Materials $ 963 $ 1,966 $ 6,377 $ 26,024
Contract Services $ 2,577 $ 3,406 $ 12,000 $ 18,938
Cost Allocation $ 15,579 $ 15,441 $ 29,279 $ 24,178
Contingencies $ - $ - $ 230 $ -
Total Expenditures $ 37,024 $ 71,365 $ 106,286 $ 95,680 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 37,023 $ 71,364 $ 100,286 $ 55,680 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget RECREATION COORDINATOR 0 0.25 0.25 0.15
Total 0 0.25 0.25 0.15
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Parks and Recreation 298
357
CC 05-15-2025
357 of 655
Park Facilities
Budget Unit 100-63-612
General Fund - Sports, Safety and Outdoor Recreation - Park Facilities Budget at a Glance
2026 Proposed Budget
Total Revenues $ 207,016
Total Expenditures $ 1,518,999
Fund Balance $ -
General Fund Costs $ 1,311,983
% Funded by General Fund 86.4%
Total Staffing 3.0 FTE
Program Overview
Blackberry Farm provides the community with recreational space to swim, picnic, participate in ranger-led activities, and walk the Stevens Creek Trail. McClellan Ranch Preserve offers environmental education classes, nature programs, including camps, and creek tours for school groups. It is also the location of the Community Garden program and non-profit operations such as Grassroots Ecology, Santa Clara Valley Bird Alliance, UCCE Master Gardeners, and Rolling Hills 4-H Club.

Service Objectives
Blackberry Farm Picnic Grounds and Pools:

Provide the community with two pools for recreational use, swim lessons, and lap swim.

Increase resident usage of the facility.

Continue to offer Park Ranger-led activities such as interpretive walks, star-gazing events, and implement a Stevens Creek Corridor volunteer program.

McClellan Ranch Preserve:

Continue to offer drop-in visitor hours at the Environmental Education Center and Blacksmith Shop.

Partner with SCVAS, Grassroots Ecology, Watershed Stewardship Program Members, Santa Clara Valley Bird Alliance, Rolling Hills 4H and UCCE Master Gardeners in providing public education programs.

Expand programming opportunities for youth and families.

Increase volunteer/docent opportunities at McClellan Ranch.

Continue to develop the community garden programming.

Proposed Budget
It is recommended that City Council approve a budget of $1,518,999 for the Park Facilities program. This represents a decrease of $22,847 (-1.5%) from the FY 2024-25 Adopted Budget.

The budget is relatively unchanged from the prior fiscal year.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 299
358
CC 05-15-2025
358 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Use of Money and Property $ 44,273 $ 48,765 $ 56,420 $ 47,016 Charges for Services $ 97,244 $ 128,030 $ 143,600 $ 160,000 Total Revenues $ 141,517 $ 176,795 $ 200,020 $ 207,016
Expenditures
Employee Compensation $ 579,506 $ 668,431 $ 678,260 $ 723,335 Employee Benefits $ 134,397 $ 146,965 $ 222,809 $ 174,557 Materials $ 35,127 $ 22,186 $ 35,843 $ 38,395
Contract Services $ 98,827 $ 106,814 $ 111,137 $ 111,877 Cost Allocation $ 166,140 $ 221,484 $ 491,960 $ 470,835 Contingencies $ - $ - $ 1,837 $ -
Total Expenditures $ 1,013,997 $ 1,165,880 $ 1,541,846 $ 1,518,999 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 872,481 $ 989,083 $ 1,341,826 $ 1,311,983 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget OFFICE ASSISTANT 0 0 0 0.10
RECREATION COORDINATOR 1.98 1.98 2.13 2.33
RECREATION MANAGER 0.35 0.35 0.55 0.55
SR OFFICE ASSISTANT 0.85 0.85 0.85 0
Total 3.18 3.18 3.53 2.98
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Parks and Recreation 300
359
CC 05-15-2025
359 of 655
Administration
Budget Unit 100-63-615
General Fund - Sports, Safety and Outdoor Recreation - Administration Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ -
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
In FY 2022-2023, this program was divided and absorbed into the Sports, Safety, and Outdoor Recreation - Park Facilities and Outdoor Recreation programs. A complete discussion of the program can be found under Budget Unit 100-63-612 and 580-63-620.

This program will remain in order to maintain historical data, however once all prior year data as listed in the table below is $0, this program will be removed.

Proposed Budget
There is no budget requested for this program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Benefits $ 734 $ - $ - $ -
Materials $ 145 $ - $ - $ -
Cost Allocation $ 23,654 $ - $ - $ -
Total Expenditures $ 24,533 $ - $ - $ -
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 24,533 $ - $ - $ -
Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Parks and Recreation 301
360
CC 05-15-2025
360 of 655
Blackberry Farm Golf Course
Budget Unit 560-63-616
Blackberry Farm - Sports, Safety and Outdoor Recreation - Blackberry Farm Golf Course Budget at a Glance
2026 Proposed Budget
Total Revenues $ 693,000
Total Expenditures $ 547,098
Fund Balance $ 145,902
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 1.5 FTE
Program Overview
Blackberry Farm Golf Course provides a nine-hole golf facility to the community that serves all ages.

Service Objectives
Increase the golfer base through leagues, high school golf partnerships, and Youth on Course participation.

Continue to offer special events such as Glow Night Golf and intergenerational golf tournament.

Continue to provide exceptional customer service in the Golf Pro Shop where customers may rent golf clubs or purchase golfing accessories and concessions.

Proposed Budget
It is recommended that City Council approve a budget of $547,098 for the Blackberry Farm Golf Course program. This represents a decrease of $19,325 (-3.4%) from the FY 2024-25 Adopted Budget.

The budget is relatively unchanged from the prior fiscal year. The decrease in staffing costs is offset by the increase in Materials, needed to replace the aging equipment at the golf course, which includes the pull cart fleet and the hiDing range neDing and equipment.

This program also includes the following budget request, $5,000 in one-time costs for BBF Golf Course Pull Carts , and $5,820 recurring expenses for BBF Golf Course HiDing Range Equipment and NeDing. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 302
361
CC 05-15-2025
361 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Use of Money and Property $ 46,423 $ 51,933 $ 47,000 $ 52,000 Charges for Services $ 570,038 $ 611,331 $ 641,000 $ 641,000 Miscellaneous Revenue $ - $ 10 $ - $ -
Total Revenues $ 616,461 $ 663,274 $ 688,000 $ 693,000
Expenditures
Employee Compensation $ 183,783 $ 147,721 $ 255,334 $ 245,338 Employee Benefits $ 49,230 $ 11,845 $ 101,702 $ 78,170
Materials $ 21,470 $ 17,969 $ 17,634 $ 29,998
Contract Services $ 296,986 $ 252,078 $ 10,320 $ 10,395 Cost Allocation $ 87,601 $ 85,430 $ 178,258 $ 180,365
Other Financing Uses $ 2,832 $ 15,390 $ 2,832 $ 2,832
Contingencies $ - $ - $ 343 $ -
Total Expenditures $ 641,902 $ 530,433 $ 566,423 $ 547,098 Fund Balance $ (25,440) $ 132,841 $ 121,577 $ 145,902
General Fund Costs $ - $ - $ - $ -
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget OFFICE ASSISTANT 0 0 0.50 0.85
RECREATION COORDINATOR 0.65 0.65 0.65 0.30
RECREATION MANAGER 0.30 0.30 0.35 0.35
SR OFFICE ASSISTANT 0.15 0.15 0.15 0
Total 1.10 1.10 1.65 1.50
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Parks and Recreation 303
362
CC 05-15-2025
362 of 655
Outdoor Recreation
Budget Unit 580-63-620
Recreation Program - Sports, Safety and Outdoor Recreation - Outdoor Recreation Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,275,500
Total Expenditures $ 873,146
Fund Balance $ 402,354
General Fund Costs $ 500,000
% Funded by General Fund 57.3%
Total Staffing 1.6 FTE
Program Overview
This program encompasses the coordination and delivery of a wide range of sports, fitness, and outdoor activities for youth and adults.

Service Objectives
Coordinate adult softball leagues.

Increase adult sports league programming.

Provide sports, dance, fitness, and wellness classes for youth, teens, and adults.

Provide sports, fitness, and outdoor camps for youth and teens.

Provide a summer nature and science program.

Manage user group field rentals under the Cupertino Union School District/City Joint Use Agreement.

Increase nature, blacksmithing, and environmental classes for parent/child, teens, and adults.

Offer fee-based gardening programs for youth and adults.

Proposed Budget
It is recommended that City Council approve a budget of $873,146 for the Outdoor Recreation program. This represents a decrease of $92,520 (-9.6%) from the FY 2024-25 Adopted Budget.

The decrease is mainly due to a reduction in Contract Services, based on programs, classes, and camps that have been successful and the budget was refined to match current actuals.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 304
363
CC 05-15-2025
363 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Use of Money and Property $ 151,060 $ 131,941 $ 150,000 $ 130,000 Charges for Services $ 435,543 $ 541,728 $ 736,000 $ 645,500 Transfers In $ 376,000 $ - $ - $ 500,000
Total Revenues $ 962,603 $ 673,669 $ 886,000 $ 1,275,500 Expenditures
Employee Compensation $ 230,829 $ 276,084 $ 269,917 $ 255,790 Employee Benefits $ (41,805) $ 216,338 $ 128,420 $ 113,168 Materials $ 10,072 $ 3,735 $ 12,459 $ 16,732
Contract Services $ 230,331 $ 268,530 $ 420,800 $ 331,317 Cost Allocation $ 115,554 $ 144,967 $ 105,143 $ 102,613 Other Financing Uses $ 23,529 $ 30,212 $ 23,529 $ 53,526 Contingencies $ - $ - $ 5,398 $ -
Total Expenditures $ 568,510 $ 939,866 $ 965,666 $ 873,146 Fund Balance $ 394,092 $ (266,197) $ (79,666) $ 402,354 General Fund Costs $ 376,000 $ - $ - $ 500,000
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget OFFICE ASSISTANT 0 0 0 0.05
RECREATION COORDINATOR 0.45 1.40 1.30 1.10
RECREATION MANAGER 0.30 0.70 0.45 0.45
RECREATION SUPERVISOR 0.30 0 0 0
Total 1.05 2.10 1.75 1.60
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Parks and Recreation 305
364
CC 05-15-2025
364 of 655
Sports Center Operations
Budget Unit 570-63-621
Sports Center - Sports, Safety and Outdoor Recreation - Sports Center Operations Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,086,500
Total Expenditures $ 1,595,437
Fund Balance $ (508,937)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 2.6 FTE
Program Overview
The Cupertino Sports Center offers a variety of health and wellness activities including a full fitness center, assortment of fitness classes, personal training, youth sports classes, and variety of racquet sports, including tennis, table tennis, pickle ball, and badminton classes, camps, and programs.

Service Objectives
Increase memberships, participation in fitness classes, personal training, and enrollment in contract camps and classes.

Market programs through social media, the recreation schedule, electronic sign on Stevens Creek Blvd., and the City website.

Collaborate with Public Works to ensure successful implementation of Capital Improvement Projects.

Explore new program offerings.

Proposed Budget
It is recommended that City Council approve a budget of $1,595,437 for the Sports Center Operations program. This represents a decrease of $64,451 (-3.9%) from the FY 2024-25 Adopted Budget.

The decrease is mainly due to the updated contract services for racquet sports, basketball, and chess instruction, where the registration procedures have been streamlined. This lowers the direct costs for the City and enhances the efficiency of revenue collection and recording for these programs.

This program also includes budget requests of $28,968 one-time costs for Interior Gate Access, and $12,000 recurring for Small Tools and Equipment. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 306
365
CC 05-15-2025
365 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Use of Money and Property $ 360,116 $ 363,872 $ 375,000 $ 217,500 Charges for Services $ 2,756,264 $ 1,998,806 $ 1,070,000 $ 869,000 Miscellaneous Revenue $ 1,200 $ - $ - $ -
Total Revenues $ 3,117,580 $ 2,362,678 $ 1,445,000 $ 1,086,500 Expenditures
Employee Compensation $ 312,944 $ 420,799 $ 350,322 $ 474,105 Employee Benefits $ (19,137) $ 264,524 $ 136,895 $ 152,418 Materials $ 54,932 $ 27,120 $ 36,970 $ 100,705
Contract Services $ 2,321,162 $ 1,540,531 $ 677,150 $ 381,460 Cost Allocation $ 171,128 $ 192,546 $ 435,164 $ 472,531 Other Financing Uses $ 14,487 $ 14,323 $ 14,487 $ 14,218 Contingencies $ - $ - $ 8,900 $ -
Total Expenditures $ 2,855,516 $ 2,459,843 $ 1,659,888 $ 1,595,437 Fund Balance $ 262,064 $ (97,165) $ (214,888) $ (508,937) General Fund Costs $ - $ - $ - $ -
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget OFFICE ASSISTANT 1.00 1.00 0.50 0
RECREATION COORDINATOR 0.80 0.85 1.00 1.00
RECREATION MANAGER 0 0.55 0.55 0.55
RECREATION SUPERVISOR 0.70 0 0 0
SR OFFICE ASSISTANT 0 0 0 1.00
Total 2.50 2.40 2.05 2.55
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Parks and Recreation 307
366
CC 05-15-2025
366 of 655
Community Outreach and Neighborhood Watch
Budget Unit 100-65-632
General Fund - Office of Emergency Services - Community Outreach and Neighborhood Watch Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 225,076
Fund Balance $ -
General Fund Costs $ 225,076
% Funded by General Fund 100.0%
Total Staffing 1.0 FTE
Program Overview
Community Outreach programs facilitate communication and enhance cultural understanding in Cupertino neighborhoods. Block Leaders are instrumental in building connected communities, delivering timely and pertinent information to neighbors, and providing input to the City. Neighborhood Watch enhances public safety by providing crime prevention information to local businesses and residents. The program promotes an active relationship between the community and the Sheriff's Office.

Service Objectives
Aid in the development, implementation, and coordination of City programs and community-building activities designed to bring Cupertino neighborhoods together.

Coordinate and disseminate useful and important information to Cupertino residents through regular meetings and communications that build relationships and strengthen neighborhoods.

Facilitate collaboration with Emergency Preparedness and Neighborhood Watch programs.

Train residents to connect and organize neighbors and neighborhoods.

Get Block Leaders involved in the Parks and Recreation System Master Plan.

Create and implement Neighborhood Watch meetings and groups Disseminate important City news and safety information.

Organize and conduct annual National Night Out initiative.

Proposed Budget
It is recommended that City Council approve a budget of $225,076 for the Community Outreach and Neighborhood Watch program.

In FY 2024-2025, this program was moved from the City Manager's Office. The prior year data can be found under Budget Unit 100-12-632.

The budget is relatively unchanged from the prior fiscal year.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 308
367
CC 05-15-2025
367 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ - $ - $ - $ 115,273
Employee Benefits $ - $ - $ - $ 48,962
Materials $ - $ - $ - $ 8,856
Cost Allocation $ - $ - $ - $ 51,985
Total Expenditures $ - $ - $ - $ 225,076
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ - $ - $ 225,076
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget EMERGENCY SERVICES COORDINATOR 0 0 0 1.00
Total 0 0 0 1.00
Due to the reorganization of this program from the City Manager's Office, positions within the program have been transferred accordingly.

FY 2025-26 Proposed Budget Parks and Recreation 309
368
CC 05-15-2025
368 of 655
Office of Emergency Management
Budget Unit 100-65-633
General Fund - Office of Emergency Services - Office of Emergency Management Budget at a Glance
2026 Proposed Budget
Total Revenues $ 11,000
Total Expenditures $ 695,060
Fund Balance $ -
General Fund Costs $ 684,060
% Funded by General Fund 98.4%
Total Staffing 2.0 FTE
Program Overview
The mission of the Office of Emergency Management is to lead and direct the City in prevention, preparation, mitigation, response, and recovery from all emergencies, hazards, incidents, and events.

Service Objectives
Develop and implement the goals and objectives of Cupertino's Office of Emergency Management.

Maintain the City's Emergency Operations Center (EOC) in a perpetual state of operational readiness.

Support Citizen's Corps including the Block Leader Program, Neighborhood Watch, Community Emergency Response Team (CERT), Cupertino Amateur Radio Emergency Service (CARES), and Medical Reserve Corps (MRC).

Prepare, test, and revise emergency response and recovery policies, plans, and procedures in compliance with the California Emergency Services Act, the Standardized Emergency Management System (SEMS), and the National Incident Management System (NIMS).

Coordinate training of City staff in personal preparedness, SEMS/NIMS, and EOC functions.

Maintain effective liaison with local, state, and national emergency management organizations and/or allied disaster preparedness and response agencies.

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

Service as liaison to the Santa Clara County Fire Department.

Proposed Budget
It is recommended that City Council approve a budget of $695,060 for the Office of Emergency Management program.

In FY 2024-2025, this program was moved from the City Manager's Office. The prior year data can be found under Budget Unit 100-12-633.

The increase is mainly due to increases in Contract Services, for annual California Specialized Training Institute (CSTI) and Bay Area Urban Areas Security Initiative (UASI) Trainings for the EOC and Emergency Operations Plan (EOP) and Cost Allocation Expenses.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Parks and Recreation 310
369
CC 05-15-2025
369 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ - $ - $ - $ 11,000
Total Revenues $ - $ - $ - $ 11,000
Expenditures
Employee Compensation $ - $ - $ - $ 376,646
Employee Benefits $ - $ - $ - $ 150,512
Materials $ - $ - $ - $ 35,962
Contract Services $ - $ - $ - $ 33,487
Cost Allocation $ - $ - $ - $ 98,453
Total Expenditures $ - $ - $ - $ 695,060
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ - $ - $ 684,060
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0 0.95
EMERGENCY SERVICES MANAGER 0 0 0 1.00
Total 0 0 0 1.95
Due to the reorganization of this program from the City Manager's Office, positions within the program have been transferred accordingly.

FY 2025-26 Proposed Budget Parks and Recreation 311
370
CC 05-15-2025
370 of 655
Community Development
FY 2025-26 Proposed Budget Community Development 312
371
CC 05-15-2025
371 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Community Development 313
372
CC 05-15-2025
372 of 655
Department Overview
Budget Units
Budget Unit Program 2026 Proposed Budget
Community Development $ 423,697
100-70-700 Community Development Administration $ 423,697 Planning $ 5,511,911
100-71-701 Current Planning $ 3,626,108
100-71-702 Mid and Long Term Planning $ 886,746
100-71-705 Economic Development $ 999,057
Housing Services $ 1,292,584
260-72-707 CDBG General Admin $ 72,695
260-72-709 CDBG Capital/Housing Projects $ 359,467
260-72-710 CDBG Public Service Grants $ 58,000
265-72-711 BMR Affordable Housing Fund $ 746,807
100-72-712 Human Service Grants $ 55,615
Building $ 4,910,338
100-73-713 General Building $ 1,083,311
100-73-714 Building Plan Review $ 2,341,590
100-73-715 Building Code Enforcement $ 1,415,320
100-73-718 Muni Code Enforcement $ 70,117
Code Enforcement $ 1,673,825
100-74-202 Code Enforcement $ 1,653,825
100-74-716 Building Abatement $ 20,000
Total $ 13,812,355
FY 2025-26 Proposed Budget Community Development 314
373
CC 05-15-2025
373 of 655
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 11,454,443
Total Expenditures $ 13,812,355
Fund Balance $ 3,713,424
General Fund Costs $ 6,071,336
% Funded by General Fund 44.0%
Total Staffing 34.2 FTE
Organization
Benjamin Fu, Director of Community Development
Staffing changes include the addition of the Economic Development Manager.

Notable Accomplishments
The City's adopted Housing Element was certified in September 2024. The City also completed all related zoning ordinance amendments in July 2024, paving the way for future housing development to meet the state requirement Regional Housing Needs Allocation (RHNA) of at least 4,588 new housing units.

Process Improvements – 1) Website update and implementation of Major Projects page. 2) Updated General Commercial (CG) ordinance to modernize the uses allowed in this zoning district. 3) Updated the Fence Ordinance to clarify existing policies and requirements, this included allowing certain electric gates by right and fence gateway features within setback areas. 4) Adopted fees to ensure cost recovery for applications.

FY 2025-26 Proposed Budget Community Development 315
374
CC 05-15-2025
374 of 655
Launched a newly designed Building Division website with updated content and an enhanced user-friendly interface.

Partnered with the Sustainability team to establish Ordinance No. 24-2265, amending the original Electric-Ready for All New Buildings requirement.

Issued 1,419 permits between July 1, 2024, and December 31, 2024.

Completed a study and draVed resolution to enact a Below Market Rate (BMR) Anti-Displacement Policy to assist tenants of expiring affordable rental units in market rate developments.

Reviewed applications for affordable housing projects and low-income services eligible for the Community Development Block Grant (CDBG), Below Market Rate Affordable Housing Fund (BMR AHF), General Fund Human Services Grant (HSG), Permanent Local Housing Allocation (PLHA), and County funding through the release of the FY25-26 Notice of Funding Available.

Held the West Valley Affordable Housing Developer’s Forum to engage affordable housing developers and discuss new affordable housing opportunities under the 2023-2031 Housing Element while identifying the persisting obstacles to creating new affordable housing projects.

Code Enforcement experienced a 6.5% increase in number of complaints received and responded to 100% of complaints received throughout the year. This was done while experiencing a reduced staffing level due to the departure of a Senior Code Enforcement officer.

Code Enforcement worked closely with IT to implement the Code Enforcement module in Accela to get all divisions in CDD on the same system. Additionally, staff increased efficiency and streamlined operations by incorporating the new case management database program into their day-to-day tasks, reporting activities, and tracking functions.

New Initiatives
Process Improvement – 1) Ongoing effort to create and update handouts to facilitate a more transparent and efficient review process, such as Accessory Dwelling Unit (ADU), planning inspections, etc. 2) Project review software updates for improved integration and access. 3) Review and establish new and updated policies and procedures for the permiDing, plan review, and inspection functions. 4) Follow through with researching and implementing new parking citation devices for code enforcement to update the old units that are no longer supported. 5) Continue to work with IT on relocating our electronic plan review system (ProjectDox) from on premises to SAAS. 6) Continue to work with IT on updating the online permiDing portal associated with Accela. 7) Continue the research and work with IT to get the parking citation equipment updated to ensure a more efficient process for staff. 8) Continue to work on the automation of data migration from Accela/ProjectDox into Laserfiche to eliminate the staff time needed to manually perform this function. 9) Expanding the online permiDing process to include all Building permit types.

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

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

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

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

Current Planning Projects – Review and processing ongoing of 11 housing development projects received between January 2024 and March 2025. The list of projects being processed is available at www.cupertino.org/majorprojects. In addition to these projects, staff has discussed various sites around the City, which have generated interest from developers about development, including but not limited to Priority Housing Element sites.

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

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

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

FY 2025-26 Proposed Budget Community Development 316
375
CC 05-15-2025
375 of 655
Support for the Unhoused – Collaborate and fund jointly with West Valley cities efforts to address regional needs and find workable support for the Unhoused. Follow the established protocols to assist the unhoused while studying new opportunities to expand service. Work on Housing Element implementation items to support the production of affordable housing, including housing for the unhoused.

Apply to County funding sources to expand outreach services to the unhoused with funding for flexible assistance in accordance with Function Zero principles.

Temporary Housing - Execute the Memorandum of Understanding to join the West Valley Cities Joint Shelter feasibility study to explore the possibility of developing temporary housing and emergency shelter with other cities in the West Valley.

Low Income Housing - Explore the possibility of implementing a low-income home sharing program in accordance with Housing Element commitments with non-profit partners such as HIP Housing or Front Porch.

FY 2025-26 Proposed Budget Community Development 317
376
CC 05-15-2025
376 of 655
Performance Measures
Goal: Review and guide development activity to ensure compliance with relevant codes and policies, and alignment with community values to promote and enhance Cupertino's community-wide quality of life.

Benefit: Cupertino is a thriving city to live, work, learn and play.

Performance Measure
FY 2023
July-June
FY 2024
July-June
FY 2025
July-Dec
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 filled 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 28 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
HUD's
annual
timeliness
test
Economic Development Division
Goal: To actively pursue opportunities in the areas of business aDraction, retention, and expansion as a means of promoting economic vitality, and strengthening the City's sales tax base to support Cupertino's excellent quality of life for its residents, businesses, and daytime population.

Benefit: Cupertino's economy and sales tax revenue base are diversified to further enhance the City's financial stability and its ability to provide quality amenities to the community.

FY 2025-26 Proposed Budget Community Development 318
377
CC 05-15-2025
377 of 655
Performance Measure
FY 2023
July-June
FY 2024
July-June
FY 2025
July-Dec
Ongoing
Target
Maintain Economic Development Business Connect Subscribers 6,000 8,758 9,752 9,000 Economic Development Business Visits, Workshops & Events 7 64 33 20 per year FY 2025-26 Proposed Budget Community Development 319
378
CC 05-15-2025
378 of 655
Workload Indicators
Planning Division
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-Dec
Number of preliminary reviews 127 21 29
Number of planning applications received 232 95 170
Number of planning counter inquiries 1223 644 644
Housing Services Division
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-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 2 1 1
Housing and Human Services Grant Funds inquiries 10
N/A
(applications are
due 2/6/24) 10
*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.

Building Division
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-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 2,310 1,755 1,940
* In-person appointments started July 15, 2021, the counters were temporarily closed in January 10, 2022, due to the surge of the Omicron variant of Covid-19.

Economic Development Division
FY 2025-26 Proposed Budget Community Development 320
379
CC 05-15-2025
379 of 655
Workload Indicator FY 2023
July-June
FY 2024
July-June
FY 2025
July-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 7 13 13
Number of Delivery Posts to Business Connect Subscribers 3 12 19 Proposed Budget
It is recommended that City Council approve a budget of $13,812,355 for the Community Development department. This represents an increase of $863,354 (6.7%) from the FY 2024-25 Adopted Budget.

The increase is due to an increase in Employee Compensation and Benefits due to the transfer in of Economic Development the Administration Department and the request to add part-time staffing in that program. Additionally, the department is requesting two new classifications - a Code Enforcement Supervisor and Assistant Housing Coordinator to better align with program needs.

For any programs with reductions in benefits, this is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings. Any changes in cost allocation charges are due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. In addition, contingency dollars have been calculated off of department's FY 2025-26 base budget materials and contracts and have been consolidated into materials budgets.

Citywide training was significantly reduced across all budget units as part of budget reductions in the last two fiscal years. Staff is requesting the restoration of 50% of the previously reduced training funds. This amount was calculated by comparing the training budgets in materials and contracts from FY 2022–23 to those in FY 2024–25, determining the difference, and then adding back 50% of that difference.

This budget also includes funding request for on-call contracts in building and the following City Work Program items:

Economic Development for Retail and Small Businesses - $200,000 Permit Streamlining and Simplification for Small Home Upgrades - $250,000 Add notification for SB 330 and other projects during the application approval process - $10,000 Unhoused Policies - $100,000
Impact Fee Study - $400,000
Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category. Prior special projects have been moved to the contract or material expense categories.

FY 2025-26 Proposed Budget Community Development 321
380
CC 05-15-2025
380 of 655
Proposed Expenditures by Division
Department Expenditure History
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

39.9%

35.6%

12.1%

9.4%
Planning
Building
Code Enforcement
Housing Services
Community Development
$11.7M $11.5M
$12.9M
$13.8M
2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget FY 2025-26 Proposed Budget Community Development 322
381
CC 05-15-2025
381 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Other Taxes $ 170,824 $ - $ 4,532,926 $ 4,532,926
Licenses and Permits $ 4,064,397 $ 4,381,712 $ 3,635,000 $ 4,235,000 Use of Money and Property $ 28,909 $ 29,535 $ 7,944 $ 7,944 Intergovernmental Revenue $ 249,229 $ 543,777 $ 268,437 $ 459,523 Charges for Services $ 1,003,806 $ 968,342 $ 949,631 $ 1,572,000 Fines and Forfeitures $ 134,714 $ 261,300 $ 215,000 $ 225,000 Miscellaneous Revenue $ 88,652 $ 69,331 $ 55,050 $ 55,050 Other Financing Sources $ 272,396 $ 127,037 $ 367,000 $ 367,000 Transfers In $ 25,000 $ - $ - $ -
Total Revenues $ 6,037,927 $ 6,381,034 $ 10,030,988 $ 11,454,443 Expenditures
Employee Compensation $ 4,251,856 $ 3,807,128 $ 5,065,540 $ 5,180,017 Employee Benefits $ 1,608,597 $ 1,818,064 $ 2,523,678 $ 2,242,500 Materials $ 651,455 $ 650,748 $ 1,032,960 $ 950,053
Contract Services $ 558,901 $ 666,612 $ 364,150 $ 469,230 Cost Allocation $ 3,196,843 $ 3,111,654 $ 2,833,625 $ 3,045,555 Special Projects $ 805,938 $ 962,442 $ 200,000 $ 860,000 Other Financing Uses $ 619,687 $ 482,077 $ 925,000 $ 1,065,000 Contingencies $ 277 $ - $ 4,048 $ -
Total Expenditures $ 11,693,554 $ 11,498,725 $ 12,949,001 $ 13,812,355 Fund Balance $ (575,649) $ (516,260) $ 3,335,610 $ 3,713,424 General Fund Costs $ 5,104,982 $ 4,601,434 $ 6,253,623 $ 6,071,336 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 323
382
CC 05-15-2025
382 of 655
Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 1.75 1.75 1.75 1.75
ASSISTANT HOUSING COORDINATOR 0 0 0 0.85
ASSISTANT PLANNER 2.00 3.00 2.00 2.00
ASSIST DIR OF COMMITY DEV 1.00 1.00 1.00 1.00
ASSOCIATE PLANNER 5.00 5.00 5.00 3.00
BUILDING INSPECTOR 3.92 3.92 3.92 3.92
BUILDING OFFICIAL 0 1.00 1.00 1.00
CODE ENFORCEMENT OFFICER 2.00 2.00 2.00 2.00
CODE ENFORCEMENT SUPERVISOR 0 0 0 1.00
DEPUTY BUILDING OFFICIAL 1.00 1.00 1.00 1.00
DIRECTOR OF COMM DEVELOPMENT 0.94 0.94 0.94 0.94
ECONOMIC DEVELOPMENT MANAGER 0 0 0 1.00
MANAGEMENT ANALYST 1.00 1.00 1.00 1.00
OFFICE ASSISTANT 2.00 1.00 1.00 1.00
PERMIT CENTER MANAGER 1.00 0 0 0
PERMIT TECHNICIAN 4.00 4.00 4.00 4.00
PLAN CHECK ENGINEER 2.00 2.00 2.00 2.00
PLANNING MANAGER 1.90 1.90 2.00 1.00
SENIOR HOUSING COORDINATOR 0 0 0.80 0.85
SENIOR PLANNER 5.00 1.90 1.90 2.90
SR BUILDING INSPECTOR 0.98 0.98 0.98 0.98
SR CODE ENFORCEMENT OFFICER 2.00 2.00 2.00 1.00
Total 37.49 34.39 34.29 34.19
FY 2025-26 Proposed Budget Community Development 324
383
CC 05-15-2025
383 of 655
Community Development Administration
Budget Unit 100-70-700
General Fund - Community Development - Community Development Administration Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 423,697
Fund Balance $ -
General Fund Costs $ 423,697
% Funded by General Fund 100.0%
Total Staffing 0.5 FTE
Program Overview
The Community Development Administration program manages general office and oversight functions for the Community Development Department.

Service Objectives
Coordinate and direct general office affairs related to community development functions.

Manage professional and administrative staff.

Prepare and implement the department budget.

Coordinate as necessary with other departments in the City.

Review and evaluate City and department goals and objectives.

Proposed Budget
It is recommended that City Council approve a budget of $423,697 for the Community Development Administration program. This represents an increase of $10,120 (2.4%) from the FY 2024-25 Adopted Budget.

This budget is relatively unchanged from the prior fiscal year.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 325
384
CC 05-15-2025
384 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 96,867 $ 103,687 $ 110,446 $ 111,663 Employee Benefits $ 35,699 $ 43,250 $ 49,688 $ 44,400
Materials $ 3,694 $ 2,157 $ 8,154 $ 14,597
Contract Services $ 144,679 $ 157,556 $ - $ -
Cost Allocation $ 572,700 $ 334,114 $ 245,187 $ 253,037 Special Projects $ 126,047 $ 136,895 $ - $ -
Contingencies $ 277 $ - $ 102 $ -
Total Expenditures $ 979,963 $ 777,659 $ 413,577 $ 423,697 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 979,963 $ 777,659 $ 413,577 $ 423,697 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget DIRECTOR OF COMM DEVELOPMENT 0.30 0.30 0.30 0.30
MANAGEMENT ANALYST 0.20 0.20 0.20 0.20
Total 0.50 0.50 0.50 0.50
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Community Development 326
385
CC 05-15-2025
385 of 655
Current Planning
Budget Unit 100-71-701
General Fund - Planning - Current Planning
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,895,300
Total Expenditures $ 3,626,108
Fund Balance $ -
General Fund Costs $ 1,730,808
% Funded by General Fund 47.7%
Total Staffing 9.6 FTE
Program Overview
The Current Planning program serves to review projects and implement City ordinances, land use plans and the General Plan goals and objectives through the planning review and building plan check processes.

Service Objectives
Maintain a high level of customer service.

Provide assistance at the public counter, over the telephone, or via email.

Implement the City's General Plan, land use plans and Zoning Ordinance.

Evaluate Planning applications for consistency with City ordinance, General Plan goals, and applicable State and Federal regulations.

Coordinate internal review of Planning applications with other City departments.

Conduct environmental review of projects in compliance with California Environmental Quality Act (CEQA) and applicable regional, State and Federal regulations.

Provide technical analysis and recommendations to the Council, Planning Commission and Design Review Committee.

Review building permits to ensure implementation of zoning requirements, environmental mitigation measures and planning entitlement conditions of approval.

Proposed Budget
It is recommended that City Council approve a budget of $3,626,108 for the Current Planning program. This represents an increase of $291,580 (8.7%) from the FY 2024-25 Adopted Budget.

The increase is due to a reallocation of staff and the inclusion of the following City Work Program item:

Permit Streaming and Simplification for Small Home Upgrades $250,000 and Add notifications for SB 330 and other projects during application and approval process $10,000 Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 327
386
CC 05-15-2025
386 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 934,481 $ 895,566 $ 829,373 $ 1,502,000 Miscellaneous Revenue $ 40,570 $ 19,331 $ 51,300 $ 51,300 Other Financing Sources $ 272,396 $ 127,037 $ 342,000 $ 342,000 Total Revenues $ 1,247,447 $ 1,041,934 $ 1,222,673 $ 1,895,300 Expenditures
Employee Compensation $ 902,953 $ 696,297 $ 1,295,740 $ 1,364,294 Employee Benefits $ 296,845 $ 360,086 $ 625,489 $ 545,956 Materials $ 15,401 $ 2,792 $ 4,351 $ 16,055
Contract Services $ 60,583 $ 170,877 $ 220 $ 220
Cost Allocation $ 858,254 $ 879,776 $ 858,671 $ 889,583 Special Projects $ 60,958 $ 79,473 $ - $ 260,000
Other Financing Uses $ 243,267 $ 149,969 $ 550,000 $ 550,000 Contingencies $ - $ - $ 57 $ -
Total Expenditures $ 2,438,261 $ 2,339,270 $ 3,334,528 $ 3,626,108 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 1,190,816 $ 1,297,336 $ 2,111,855 $ 1,730,808 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.60 0.60 0.60 0.60
ASSISTANT HOUSING COORDINATOR 0 0 0 0.40
ASSISTANT PLANNER 2.00 2.10 2.00 2.00
ASSOCIATE PLANNER 3.65 3.25 3.25 2.20
DIRECTOR OF COMM DEVELOPMENT 0.28 0.28 0.28 0.28
MANAGEMENT ANALYST 0.40 0.40 0.40 0.40
OFFICE ASSISTANT 0.50 0 0 0
PERMIT TECHNICIAN 1.00 1.00 1.00 1.00
PLANNING MANAGER 0.50 0.50 0.40 0.40
SENIOR HOUSING COORDINATOR 0 0 0.10 0.40
SENIOR PLANNER 1.65 1.35 1.35 1.95
Total 10.58 9.48 9.38 9.63
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Community Development 328
387
CC 05-15-2025
387 of 655
Mid and Long Term Planning
Budget Unit 100-71-702
General Fund - Planning - Mid and Long Term Planning
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 78,750
Total Expenditures $ 886,746
Fund Balance $ -
General Fund Costs $ 807,996
% Funded by General Fund 91.1%
Total Staffing 2.9 FTE
Program Overview
The Mid-and Long-Term Planning program assists the community in preparing, reviewing and amending documents including the General Plan, Specific Plans, Conceptual Plans, and the Municipal Code, including the Zoning Ordinance. Additionally, the program anticipates and evaluates trends, and develops strategies and plans to help the City address change.

Service Objectives
Review and amend the City's General Plan, Housing Element, and Municipal Code, including the Zoning Ordinance, Specific, Conceptual and Master Plans.

Ensure City processes and regulations are in compliance with State and Federal regulations, including the California Environmental Quality Act (CEQA).

Review and implement policies in the General Plan, Housing Element, Zoning Ordinance, Specific, Conceptual and Master Plans.

Coordinate with various local, regional, State and Federal agencies on projects.

Facilitate the planning and implementation of the City Council's annual community development goals and objectives.

Proposed Budget
It is recommended that City Council approve a budget of $886,746 for the Mid and Long Term Planning program. This represents a decrease of $340,481 (-27.7%) from the FY 2024-25 Adopted Budget.

The decrease is due to staffing reallocations and having no special projects this fiscal year.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 329
388
CC 05-15-2025
388 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ 52,613 $ 300,000 $ - $ -
Charges for Services $ 58,913 $ 56,958 $ 110,000 $ 50,000 Miscellaneous Revenue $ - $ - $ 3,750 $ 3,750
Other Financing Sources $ - $ - $ 25,000 $ 25,000
Total Revenues $ 111,526 $ 356,958 $ 138,750 $ 78,750
Expenditures
Employee Compensation $ 530,985 $ 355,990 $ 560,593 $ 493,024 Employee Benefits $ 179,264 $ 163,101 $ 255,942 $ 186,792 Materials $ 4,270 $ 1,379 $ 3,214 $ 8,933
Contract Services $ (4,345) $ - $ 7,500 $ 7,500
Cost Allocation $ 316,560 $ 350,186 $ 199,844 $ 190,497 Special Projects $ 466,756 $ 686,015 $ 200,000 $ -
Contingencies $ - $ - $ 134 $ -
Total Expenditures $ 1,493,490 $ 1,556,671 $ 1,227,227 $ 886,746 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 1,381,965 $ 1,199,714 $ 1,088,477 $ 807,996 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.15 0.15 0.15 0.15
ASSOCIATE PLANNER 1.35 1.75 1.75 0.80
DIRECTOR OF COMM DEVELOPMENT 0.24 0.24 0.24 0.24
MANAGEMENT ANALYST 0.20 0.20 0.20 0.20
PLANNING MANAGER 0.60 0.60 0.60 0.60
SENIOR PLANNER 1.55 0.55 0.55 0.95
Total 4.09 3.49 3.49 2.94
Staff time is being reallocated to better reflect actual time spent in this program.

FY 2025-26 Proposed Budget Community Development 330
389
CC 05-15-2025
389 of 655
Economic Development
Budget Unit 100-71-705
General Fund - Planning - Economic Development
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 999,057
Fund Balance $ -
General Fund Costs $ 999,057
% Funded by General Fund 100.0%
Total Staffing 1.0 FTE
Program Overview
The Economic Development Division oversees the development and implementation of policies and programs to promote business resiliency while undertaking a wide variety of business attraction, retention, and expansion efforts.

Service Objectives
Provide assistance and support to businesses to enable job creation, new business formation, private investment, and industry evolution.

Conduct outreach to existing small businesses to create strong working relationships.

Collaborate with internal city team members to keep the needs of businesses in the forefront when reviewing applications and projects.

Partner with local business associations, agencies, and organizations to create a strong and cohesive network offering business support and assistance.

Provide the public with current data and information easily accessible online or in printed format. Assist with policy formation to align with business and community goals
Proposed Budget
It is recommended that City Council approve a budget of $999,057 for the Economic Development program.

Reduction in benefits is due to the one-time additional discretionary payment to the City's retirement system that has resulted in benefit savings.

This budget is a new a ddition to the Community Development Department for this fiscal year, it was transferred in from the Administration Department. A request to fund a part-time management analyst to assist with City Work Program items and to carry out duties of the Economic Development division to support businesses to enable job creation, new business formation, and outreach to existing small businesses to create strong working relationships. This budget includes the following City Work Program items:

Economic Development for Retail and Small Businesses and Defensible Impact Fee Nexus Study for Traffic Impact Fee, Retail Impact Fee, BMR Impact Fee, and Parkland Impact Fee $350,000 CWP items are no longer considered Special Projects per the new City Council Special Project Policy but are discussed here for ease of tracking and transparency. CWP will remain in the Special Project expense category as a way to track these projects but will be reported separately from all other Special Projects that fall under the policy.

Revenues and Expenditures
FY 2025-26 Proposed Budget Community Development 331
390
CC 05-15-2025
390 of 655
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ - $ - $ - $ 265,819
Employee Benefits $ - $ - $ - $ 94,337
Materials $ - $ - $ - $ 34,410
Contract Services $ - $ - $ - $ 71,250
Cost Allocation $ - $ - $ - $ 183,241
Special Projects $ - $ - $ - $ 350,000
Total Expenditures $ - $ - $ - $ 999,057
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ - $ - $ 999,057
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ECONOMIC DEVELOPMENT MANAGER 0 0 0 1.00
Total 0 0 0 1.00
Due to the reorganization of this program from the City Manager's Office, positions within the program have been transferred accordingly.

FY 2025-26 Proposed Budget Community Development 332
391
CC 05-15-2025
391 of 655
CDBG General Admin
Budget Unit 260-72-707
CDBG - Housing Services - CDBG General Admin
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 77,400
Total Expenditures $ 72,695
Fund Balance $ 4,705
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.4 FTE
Program Overview
The General Administration of the Community Development Block Grant (CDBG) federal entitlement program is reserved for program administration costs to cover salary and benefits of staff who operate the CDBG program. The CDBG program is a federal entitlement program which serves low- and moderate- income Cupertino residents. CDBG program administration costs represent 20% of the City's annual federal CDBG allocation plus prior year program income.

Service Objectives
Prepare and submit an Annual Plan to the US Department of Housing and Urban Development (HUD).

Prepare and submit annual Consolidated Annual Performance and Evaluation Report (CAPER) to HUD.

Prepare and submit a five-year Consolidated Plan to HUD.

Meet quarterly with Santa Clara County CDBG Coordinators.

Conduct four-eight public hearings per year to allocate CDBG funding, review Annual Plan, CAPER, and Consolidated Plan.

Provide technical assistance to grantees and applicants.

Monitor grantees for compliance with federal regulations.

Proposed Budget
It is recommended that City Council approve a budget of $72,695 for the CDBG General Admin program. This represents a decrease of $112,948 (-60.8%) from the FY 2024-25 Adopted Budget.

The decrease is due to salary and benefits decrease from a reallocation of staff that includes a proposed new classification of Assistant Housing Coordinator . The Assistant Housing Coordinator will help with the coordination of housing and grant programs, the BMR Affordable Housing program, housing strategies, assist with homelessness prevention efforts, and the CDBG and Human Service Grants programs.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 333
392
CC 05-15-2025
392 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ 71,338 $ 46,213 $ 38,131 $ 77,400 Total Revenues $ 71,338 $ 46,213 $ 38,131 $ 77,400
Expenditures
Employee Compensation $ 80,482 $ 12,955 $ 127,825 $ 48,965 Employee Benefits $ 29,409 $ 18,249 $ 57,818 $ 23,730
Materials $ 37,593 $ 22,952 $ - $ -
Total Expenditures $ 147,484 $ 54,156 $ 185,643 $ 72,695 Fund Balance $ (76,146) $ (7,942) $ (147,512) $ 4,705
General Fund Costs $ - $ - $ - $ -
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT HOUSING COORDINATOR 0 0 0 0.20
ASSISTANT PLANNER 0 0.10 0 0
PLANNING MANAGER 0.39 0.39 0.50 0
SENIOR HOUSING COORDINATOR 0 0 0.20 0.20
SENIOR PLANNER 0.20 0 0 0
Total 0.59 0.49 0.70 0.40
Staff time is being reallocated to beDer reflect actual time spent in this program, including a proposed new classification of Assistant Housing Coordinator.

FY 2025-26 Proposed Budget Community Development 334
393
CC 05-15-2025
393 of 655
CDBG Capital/Housing Projects
Budget Unit 260-72-709
CDBG - Housing Services - CDBG Capital/Housing Projects Budget at a Glance
2026 Proposed Budget
Total Revenues $ 282,067
Total Expenditures $ 359,467
Fund Balance $ (77,400)
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
This portion of the Community Development Block Grant (CDBG) federal entitlement program is reserved for grants and loans to non-profit developers and agencies for eligible activities such as public improvements, property acquisition for affordable housing, rehabilitation of affordable units, and development of affordable housing. CDBG Capital/Housing costs represent 65% of the City's annual federal CDBG allocation plus prior year program income.

Service Objectives
Issue Requests for Proposals (RFPs) on an annual basis for Capital/Housing Projects.

Review applications and make funding recommendations to Housing Commission and City Council.

On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each grantee.

Review quarterly reports and reimbursements requests from agencies and enter data into HUD IDIS program.

Coordinate entitlement process with the Planning Division for affordable development projects.

Monitor project progress of grantees through the construction phase.

Coordinate CEQA/NEPA environmental review processes for all affordable developments.

Coordinate preparation of all grant and loan agreements, Deeds of Trust, Promissory Notes, and Regulatory Agreements.

On an annual basis, prepare grant agreements or amendments for each grantee.

Provide technical assistance to grantees and applicants.

Monitor grantees for compliance with federal regulations.

Proposed Budget
It is recommended that City Council approve a budget of $359,467 for the CDBG Capital/Housing Projects program. This represents a decrease of $101,020 (-21.9%) from the FY 2024-25 Adopted Budget.

The decrease is due to a decrease in Materials.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 335
394
CC 05-15-2025
394 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Use of Money and Property $ 28,909 $ 29,535 $ 7,944 $ 7,944 Intergovernmental Revenue $ 65,818 $ 92,536 $ 151,706 $ 274,123 Total Revenues $ 94,727 $ 122,071 $ 159,650 $ 282,067
Expenditures
Materials $ 65,818 $ 92,536 $ 460,487 $ 359,467
Total Expenditures $ 65,818 $ 92,536 $ 460,487 $ 359,467 Fund Balance $ 28,909 $ 29,535 $ (300,837) $ (77,400)
General Fund Costs $ - $ - $ - $ -
Staffing
There is no staffing associated with this program.

There is no staffing associated with this program.

FY 2025-26 Proposed Budget Community Development 336
395
CC 05-15-2025
395 of 655
CDBG Public Service Grants
Budget Unit 260-72-710
CDBG - Housing Services - CDBG Public Service Grants
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 58,000
Total Expenditures $ 58,000
Fund Balance $ -
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing FTE
Program Overview
This portion of the Community Development Block Grant (CDBG) federal entitlement program is reserved for grants to nonprofit agencies serving low- and moderate-income Cupertino residents. The agencies provide services such as food assistance, job training, emergency housing, legal assistance, etc. CDBG Public Services costs represent 15% of the City's annual federal CDBG allocation plus prior year program income.

Service Objectives
Issue Requests for Proposals (RFPs) on a bi- or tri-annual basis for public services programs.

Review applications and make funding recommendations to Housing Commission and City Council.

On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each grantee.

Review quarterly reports and reimbursements requests from agencies and enter data into HUD IDIS program.

On an annual basis, prepare grant agreements or amendments for each grantee.

Provide technical assistance to grantees and applicants.

Monitor grantees for compliance with federal regulations.

Proposed Budget
It is recommended that City Council approve a budget of $58,000 for the CDBG Public Service Grants program. This represents an increase of $2,972 (5.4%) from the FY 2024-25 Adopted Budget.

The increase is due to an increase in Materials.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 337
396
CC 05-15-2025
396 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ 59,460 $ 55,028 $ 28,600 $ 58,000 Total Revenues $ 59,460 $ 55,028 $ 28,600 $ 58,000
Expenditures
Materials $ 59,460 $ 55,028 $ 55,028 $ 58,000
Total Expenditures $ 59,460 $ 55,028 $ 55,028 $ 58,000
Fund Balance $ - $ - $ (26,428) $ -
General Fund Costs $ - $ - $ - $ -
Staffing
There is no staffing associated with this program.

There is no staffing associated with this program.

FY 2025-26 Proposed Budget Community Development 338
397
CC 05-15-2025
397 of 655
BMR Affordable Housing Fund
Budget Unit 265-72-711
BMR Housing - Housing Services - BMR Affordable Housing Fund Budget at a Glance
2026 Proposed Budget
Total Revenues $ 4,532,926
Total Expenditures $ 746,807
Fund Balance $ 3,786,119
General Fund Costs $ -
% Funded by General Fund 0.0%
Total Staffing 0.5 FTE
Program Overview
This program covers administration of the Below Market Rate (BMR) Housing program.

Service Objectives
Contract with BMR Program Administrator annually for services relating to rental and ownership units.

Prepare and monitor agreement, process monthly reimbursement requests, and provide technical assistance to BMR Program Administrator.

Review and maintain the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Manual).

Review and maintain the BMR Housing Mitigation Program Procedural Manual (Housing Mitigation Manual) Manage agreement for the provision of Fair Housing investigation and enforcement.

Commit funding for the development of new proposed affordable housing projects with awards contingent upon acquiring planning entitlements.

Proposed Budget
It is recommended that City Council approve a budget of $746,807 for the BMR Affordable Housing Fund program. This represents an increase of $24,268 (3.4%) from the FY 2024-25 Adopted Budget.

The overall increase is a result of a reallocation of staff and the City Work Program (CWP) item included in this budget:

Develop ELI Housing $250,000
Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 339
398
CC 05-15-2025
398 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Other Taxes $ 170,824 $ - $ 4,532,926 $ 4,532,926
Intergovernmental Revenue $ - $ 50,000 $ - $ -
Charges for Services $ 1,640 $ - $ - $ -
Miscellaneous Revenue $ 28,082 $ 50,000 $ - $ -
Transfers In $ 25,000 $ - $ - $ -
Total Revenues $ 225,546 $ 100,000 $ 4,532,926 $ 4,532,926 Expenditures
Employee Compensation $ 156,825 $ 103,636 $ 172,795 $ 61,207 Employee Benefits $ 58,574 $ 55,719 $ 79,149 $ 29,997
Materials $ 319,360 $ 324,927 $ 347,713 $ 366,047
Contract Services $ 57,477 $ 7,577 $ 20,700 $ 21,300
Cost Allocation $ 144,366 $ 95,908 $ 102,182 $ 18,256
Special Projects $ 17,357 $ 50,085 $ - $ 250,000
Total Expenditures $ 753,959 $ 637,852 $ 722,539 $ 746,807 Fund Balance $ (528,412) $ (537,853) $ 3,810,387 $ 3,786,119 General Fund Costs $ 25,000 $ - $ - $ -
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ASSISTANT HOUSING COORDINATOR 0 0 0 0.25
ASSISTANT PLANNER 0 0.80 0 0
OFFICE ASSISTANT 0.50 0 0 0
PLANNING MANAGER 0.41 0.41 0.50 0
SENIOR HOUSING COORDINATOR 0 0 0.50 0.25
SENIOR PLANNER 1.60 0 0 0
Total 2.51 1.21 1.00 0.50
Staff time is being reallocated to better reflect the actual time spent in this program.

FY 2025-26 Proposed Budget Community Development 340
399
CC 05-15-2025
399 of 655
Human Service Grants
Budget Unit 100-72-712
General Fund - Housing Services - Human Service Grants
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 50,000
Total Expenditures $ 55,615
Fund Balance $ -
General Fund Costs $ 5,615
% Funded by General Fund 10.1%
Total Staffing FTE
Program Overview
The City of Cupertino sets aside $129,000 from its General Fund for non-profit agencies providing services to low- and moderate- income Cupertino residents. Eligible programs include senior services, homeless services, and others that serve low- and moderate-income residents.

Service Objectives
Issue Requests for Proposals (RFPs) on a bi- or tri-annual basis for public services programs.

Review applications and make funding recommendations to Housing Commission and City Council.

On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each grantee.

Review quarterly reports and reimbursements requests from agencies.

On an annual basis, prepare grant agreements or amendments for each grantee.

Provide technical assistance to grantees and applicants.

Monitor grantees for compliance.

Proposed Budget
It is recommended that City Council approve a budget of $55,615 for the Human Service Grants program. This represents a decrease of $74,881 (-57.4%) from the FY 2024-25 Adopted Budget.

The decrease is due to a reduction in Materials.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 341
400
CC 05-15-2025
400 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Intergovernmental Revenue $ - $ - $ 50,000 $ 50,000
Total Revenues $ - $ - $ 50,000 $ 50,000
Expenditures
Materials $ 112,671 $ 122,135 $ 125,000 $ 50,000
Cost Allocation $ 5,290 $ 5,140 $ 5,496 $ 5,615
Total Expenditures $ 117,961 $ 127,275 $ 130,496 $ 55,615 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 117,961 $ 127,275 $ 80,496 $ 5,615 Staffing
There is no staffing associated with this program.

There is no staffing associated with this program.

FY 2025-26 Proposed Budget Community Development 342
401
CC 05-15-2025
401 of 655
General Building
Budget Unit 100-73-713
General Fund - Building - General Building
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 315,000
Total Expenditures $ 1,083,311
Fund Balance $ -
General Fund Costs $ 768,311
% Funded by General Fund 70.9%
Total Staffing 3.1 FTE
Program Overview
The General Building program establishes the minimum requirements to safeguard the public health, safety and general welfare through structural strength, means of egress facilities, stability, accessibility, sanitation, adequate lighting and ventilation and energy conservation; safety to life and property from fire and other hazards aDributed to the built environment; and to provide safety to fire fighters and emergency responders during emergency operations.

Service Objectives
Provide efficient and friendly service that will assist customers with their building permit goals and objectives.

Continue to streamline the workflow process to provide efficient and friendly customer service.

Work proactively to enhance the public interface and information systems.

Continue efforts to create a more effective records management system and land use data system using Geographic Information System (GIS).

Increase staff knowledge through in-house training, meetings, and seminars Proposed Budget
It is recommended that City Council approve a budget of $1,083,311 for the General Building program. This represents an increase of $1,595 (0.1%) from the FY 2024-25 Adopted Budget.

This budget is relatively unchanged from the prior fiscal year.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 343
402
CC 05-15-2025
402 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Licenses and Permits $ 269,509 $ 345,319 $ 315,000 $ 315,000 Total Revenues $ 269,509 $ 345,319 $ 315,000 $ 315,000
Expenditures
Employee Compensation $ 440,485 $ 449,645 $ 462,726 $ 458,984 Employee Benefits $ 153,510 $ 189,829 $ 235,381 $ 206,505 Materials $ 7,355 $ 6,005 $ 7,865 $ 10,498
Contract Services $ 420 $ 420 $ - $ -
Cost Allocation $ 274,264 $ 269,096 $ 375,646 $ 407,324 Special Projects $ - $ 856 $ - $ -
Contingencies $ - $ - $ 98 $ -
Total Expenditures $ 876,034 $ 915,851 $ 1,081,716 $ 1,083,311 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 606,525 $ 570,532 $ 766,716 $ 768,311 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.50 0.50 0.50 0.50
ASSIST DIR OF COMMITY DEV 0.60 0.60 0.60 0.60
BUILDING OFFICIAL 0 0.20 0.20 0.20
DEPUTY BUILDING OFFICIAL 0.20 0.20 0.20 0.20
DIRECTOR OF COMM DEVELOPMENT 0.12 0.12 0.12 0.12
MANAGEMENT ANALYST 0.20 0.20 0.20 0.20
OFFICE ASSISTANT 0.50 0.50 0.50 0.50
PERMIT CENTER MANAGER 0.20 0 0 0
PERMIT TECHNICIAN 0.60 0.60 0.60 0.60
SR BUILDING INSPECTOR 0.20 0.20 0.20 0.20
Total 3.12 3.12 3.12 3.12
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Community Development 344
403
CC 05-15-2025
403 of 655
Building Plan Review
Budget Unit 100-73-714
General Fund - Building - Building Plan Review
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 1,800,000
Total Expenditures $ 2,341,590
Fund Balance $ -
General Fund Costs $ 541,590
% Funded by General Fund 23.1%
Total Staffing 6.7 FTE
Program Overview
The Building Plan Review program is responsible for the timely and accurate review and approval of construction drawings for all residential, commercial and industrial permit applications for buildings and structures to ensure the proposed design meets or exceeds the minimum life safety, plumbing, mechanical, electrical, accessibility, energy and structural safety standards of the California Building Code and all governing local amendments.

Service Objectives
Provide a streamlined building plan review system that will ensure plans comply with all applicable state and local codes and ordinances.

Continue to streamline the internal application processing system and permit review process.

Confer with design professionals on project application and pre-application meetings.

Provide general code information for property owners, design professionals, developers, contractors and the general public.

Assist building inspectors in difficult or unusual code interpretation as it applies to various buildings and structures.

Assist in training of building inspectors and permit technicians in conducting residential and minor commercial plan review.

Proposed Budget
It is recommended that City Council approve a budget of $2,341,590 for the Building Plan Review program. This represents an increase of $44,999 (2.0%) from the FY 2024-25 Adopted Budget.

This budget is relatively unchanged from the prior fiscal year but does include a budget request of $90,000 in recurring costs for Building On call contracts. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 345
404
CC 05-15-2025
404 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Licenses and Permits $ 1,575,817 $ 1,634,094 $ 1,200,000 $ 1,800,000 Miscellaneous Revenue $ 20,000 $ - $ - $ -
Total Revenues $ 1,595,817 $ 1,634,094 $ 1,200,000 $ 1,800,000 Expenditures
Employee Compensation $ 930,184 $ 1,005,700 $ 1,042,991 $ 1,038,717 Employee Benefits $ 388,761 $ 449,037 $ 527,699 $ 471,115 Materials $ 6,404 $ 4,620 $ 4,522 $ 11,492
Cost Allocation $ 384,759 $ 422,138 $ 371,322 $ 380,266 Special Projects $ 134,820 $ 9,118 $ - $ -
Other Financing Uses $ 376,420 $ 309,238 $ 350,000 $ 440,000 Contingencies $ - $ - $ 57 $ -
Total Expenditures $ 2,221,348 $ 2,199,851 $ 2,296,591 $ 2,341,590 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 625,532 $ 565,757 $ 1,096,591 $ 541,590 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.25 0.25 0.25 0.25
ASSIST DIR OF COMMITY DEV 0.20 0.20 0.20 0.20
BUILDING OFFICIAL 0 0.80 0.80 0.80
DEPUTY BUILDING OFFICIAL 0.80 0.80 0.80 0.80
OFFICE ASSISTANT 0.25 0.25 0.25 0.25
PERMIT CENTER MANAGER 0.80 0 0 0
PERMIT TECHNICIAN 2.40 2.40 2.40 2.40
PLAN CHECK ENGINEER 2.00 2.00 2.00 2.00
Total 6.70 6.70 6.70 6.70
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Community Development 346
405
CC 05-15-2025
405 of 655
Building Code Enforcement
Budget Unit 100-73-715
General Fund - Building - Building Code Enforcement
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 2,120,000
Total Expenditures $ 1,415,320
Fund Balance $ -
General Fund Costs $ (704,680)
% Funded by General Fund -49.8%
Total Staffing 5.2 FTE
Program Overview
The Building Inspection program is established to enforce certain minimum standards pursuant to the California Building Code and all local amendments for all new and existing buildings and structures within the City of Cupertino jurisdiction. These minimum standards include public safety, health and general welfare through structural strength, stability, sanitation, adequate light and ventilation, and safety to life and property from fire, hurricane, and other hazards aDributed to the built environment.

These include alteration, repair, removal, demolition, use, and occupancy of buildings, structures or premises. The Building Inspections Division also regulates the installation and maintenance of all electrical, gas, mechanical and plumbing systems, which may be referred to as service systems. The program also responds to stormwater pollution protection, emergency situations and complaints of unsafe structures, work without permits, and prepares Notices of Violation as necessary. Unabated cases are referred to the Code Enforcement Division for further action.

Service Objectives
Build and maintain a positive working relationship with co-workers, other city employees and the general public using principles of quality customer service.

Build and maintain a partnership with property owners, developers, and contractors to help our customers meet their building occupancy goals.

Perform building inspections within 48 hours of receiving the request.

Consistently and accurately document non-complying code issues to ensure proper and safe installation of routine and complex building systems.

Ensure that minimum building code safety requirements are met in all phases of construction for structural, electrical, plumbing, mechanical and accessibility installations.

Educate community members about life and safety inspection issues as they occur before and during the construction process.

Work with owners, developers, and contractors to implement principles of green building as required in the CALGreen Building Code and Cupertino green building requirements.

Proposed Budget
It is recommended that City Council approve a budget of $1,415,320 for the Building Code Enforcement program. This represents an increase of $17,859 (1.3%) from the FY 2024-25 Adopted Budget.

This budget is relatively unchanged from the prior fiscal year but does include a budget request of $50,000 for recurring costs for Building On call contracts. For further detail on these requests, please reference the Summary of Proposed Budget Requests found at the beginning of the budget document
Special Projects
FY 2025-26 Proposed Budget Community Development 347
406
CC 05-15-2025
406 of 655
Special Projects
The following table shows the special projects for the fiscal year.

Per the City Council Special Project Policy, minor repairs and equipment purchases are no longer included in the special project category.  Prior special projects have been moved to the contract or material expense categories.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Licenses and Permits $ 2,219,071 $ 2,402,299 $ 2,120,000 $ 2,120,000 Total Revenues $ 2,219,071 $ 2,402,299 $ 2,120,000 $ 2,120,000 Expenditures
Employee Compensation $ 707,048 $ 637,763 $ 718,711 $ 715,135 Employee Benefits $ 290,199 $ 306,558 $ 384,182 $ 348,336 Materials $ 13,069 $ 9,717 $ 9,550 $ 10,756
Cost Allocation $ 368,088 $ 401,589 $ 259,899 $ 266,093 Other Financing Uses $ - $ 22,870 $ 25,000 $ 75,000
Contingencies $ - $ - $ 119 $ -
Total Expenditures $ 1,378,404 $ 1,378,497 $ 1,397,461 $ 1,415,320 Fund Balance $ - $ - $ - $ -
General Fund Costs $ (840,667) $ (1,023,801) $ (722,539) $ (704,680) Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget ADMINISTRATIVE ASSISTANT 0.25 0.25 0.25 0.25
ASSIST DIR OF COMMITY DEV 0.20 0.20 0.20 0.20
BUILDING INSPECTOR 3.72 3.72 3.72 3.72
OFFICE ASSISTANT 0.25 0.25 0.25 0.25
SR BUILDING INSPECTOR 0.73 0.73 0.73 0.73
Total 5.15 5.15 5.15 5.15
There are no changes to the current level of staffing.FY 2025-26 Proposed Budget Community Development 348 407
CC 05-15-2025
407 of 655
Muni Code Enforcement
Budget Unit 100-73-718
General Fund - Building - Muni Code Enforcement
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 70,117
Fund Balance $ -
General Fund Costs $ 70,117
% Funded by General Fund 100.0%
Total Staffing 0.3 FTE
Program Overview
The Community Development Code Enforcement program provides enforcement of various provisions of the municipal code relating to nonconforming land use and building code compliance. These activities include building without permits, unpermiDed removal of protected trees, nonconforming accessory structures, various use permit violations, private residential fence height/setback violations, and nonconforming signs. Assistance is provided to Planning and Building Division staff in the resolution of different code violations and land use concerns, which are contrary to the municipal code.

Service Objectives
Respond to citizen, City department, or outside agency referrals within 48 hours.

Provide services with an emphasis on community education and customer service.

Enforce the codes in a fair, equitable, and objective manner.

Proposed Budget
It is recommended that City Council approve a budget of $70,117 for the Muni Code Enforcement program. This represents a decrease of $2,180 (-3.0%) from the FY 2024-25 Adopted Budget.

This budget is relatively unchanged from the prior fiscal year.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 349
408
CC 05-15-2025
408 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Employee Compensation $ 35,581 $ 30,396 $ 34,870 $ 35,033 Employee Benefits $ 14,608 $ 14,864 $ 18,797 $ 17,237
Materials $ (199) $ - $ - $ -
Cost Allocation $ 34,805 $ 35,421 $ 18,630 $ 17,847
Total Expenditures $ 84,795 $ 80,681 $ 72,297 $ 70,117
Fund Balance $ - $ - $ - $ -
General Fund Costs $ 84,795 $ 80,682 $ 72,297 $ 70,117
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget BUILDING INSPECTOR 0.20 0.20 0.20 0.20
SR BUILDING INSPECTOR 0.05 0.05 0.05 0.05
Total 0.25 0.25 0.25 0.25
There are no changes to the current level of staffing.

FY 2025-26 Proposed Budget Community Development 350
409
CC 05-15-2025
409 of 655
Code Enforcement
Budget Unit 100-74-202
General Fund - Code Enforcement - Code Enforcement
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 245,000
Total Expenditures $ 1,653,825
Fund Balance $ -
General Fund Costs $ 1,408,825
% Funded by General Fund 85.2%
Total Staffing 4.0 FTE
Program Overview
The Code Enforcement program provides enforcement of various provisions of the municipal code relating to parking citations, noise, animal control, zoning and building, and other compliance areas. Assistance is provided to the Sheriff Department in the areas of traffic control and other complaint responses.

Service Objectives
Respond to resident, City department, or outside agency referrals within 48 hours.

Provide services with an emphasis on community education and customer service.

Enforce the codes in a fair, equitable, and objective manner.

Manage the animal control services contract with the City of San José.

Proposed Budget
It is recommended that City Council approve a budget of $1,653,825 for the Code Enforcement program. This represents an increase of $82,414 (5.2%) from the FY 2024-25 Adopted Budget.

The increase is aDributed to the proposed new Code Enforcement Supervisor classification, which consolidates an existing vacant Code Enforcement Officer role with a Senior Code Enforcement Officer position to beDer align with the program’s operational needs. The increase is also due to increase in Contract Services and Cost Allocation expenses.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

FY 2025-26 Proposed Budget Community Development 351
410
CC 05-15-2025
410 of 655
Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Charges for Services $ 8,772 $ 15,818 $ 10,258 $ 20,000 Fines and Forfeitures $ 134,714 $ 261,300 $ 215,000 $ 225,000 Total Revenues $ 143,486 $ 277,118 $ 225,258 $ 245,000
Expenditures
Employee Compensation $ 370,446 $ 411,059 $ 538,843 $ 587,176 Employee Benefits $ 161,728 $ 217,371 $ 289,533 $ 274,095 Materials $ 6,559 $ 6,500 $ 7,076 $ 9,798
Contract Services $ 300,087 $ 330,182 $ 335,730 $ 348,960 Cost Allocation $ 237,757 $ 318,286 $ 396,748 $ 433,796 Contingencies $ - $ - $ 3,481 $ -
Total Expenditures $ 1,076,577 $ 1,283,398 $ 1,571,411 $ 1,653,825 Fund Balance $ - $ - $ - $ -
General Fund Costs $ 933,092 $ 1,006,280 $ 1,346,153 $ 1,408,825 Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Position Title 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget CODE ENFORCEMENT OFFICER 2.00 2.00 2.00 2.00
CODE ENFORCEMENT SUPERVISOR 0 0 0 1.00
SR CODE ENFORCEMENT OFFICER 2.00 2.00 2.00 1.00
Total 4.00 4.00 4.00 4.00
Staff time is being reallocated to beDer reflect actual time spent in this program. A reclassification/promotion is using an existing vacant code enforcement officer position and combining it with a senior code enforcement officer position. This will result in one less full-time employee (FTE), keeping the total at 3.5 FTE officers.

FY 2025-26 Proposed Budget Community Development 352
411
CC 05-15-2025
411 of 655
Building Abatement
Budget Unit 100-74-716
General Fund - Code Enforcement - Building Abatement
Budget at a Glance
2026 Proposed Budget
Total Revenues $ -
Total Expenditures $ 20,000
Fund Balance $ -
General Fund Costs $ 20,000
% Funded by General Fund 100.0%
Total Staffing FTE
Program Overview
Code enforcement programs aim to ensure compliance with municipal codes, including building, zoning, and safety regulations, to maintain a safe, healthy, and aDractive community. A key objective is to prevent or remove conditions that constitute a public nuisance, which can negatively impact residents and property values.

This is an “as-needed only” abatement account which funds remedial actions related to Code Enforcement nuisance cases.

Service Objectives
Address conditions like illegal dumping, overgrown vegetation, or unsafe structures that pose a threat to public health and safety.

Issue notices of violations and providing opportunities for residents to address issues before enforcement actions are necessary.

Take appropriate enforcement actions, including administrative citations, fines, or legal action when violations persist.

Proposed Budget
It is recommended that City Council approve a budget of $20,000 for the Building Abatement program.

Revenues and Expenditures
The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.

Category 2023 Actual 2024 Actual 2025 Adopted Budget 2026 Proposed Budget Revenues
Total Revenues $ - $ - $ - $ -
Expenditures
Contract Services $ - $ - $ - $ 20,000
Total Expenditures $ - $ - $ - $ 20,000
Fund Balance $ - $ - $ - $ -
General Fund Costs $ - $ - $ - $ 20,000
Staffing
FY 2025-26 Proposed Budget Community Development 353
412
CC 05-15-2025
412 of 655
Staffing
There is no staffing associated with this program.

FY 2025-26 Proposed Budget Community Development 354
413
CC 05-15-2025
413 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Community Development 355
414
CC 05-15-2025
414 of 655
Public Works
FY 2025-26 Proposed Budget Public Works 356
415
CC 05-15-2025
415 of 655
This page intentionally left blank.

FY 2025-26 Proposed Budget Public Works 357
416
CC 05-15-2025
416 of 655
Department Overview
Budget Units
Budget Unit Program 2026 Proposed Budget
Public Works Administration $ 1,594,162
100-80-800 Public Works Administration $ 1,594,162
Environmental Programs $ 5,439,315
100-81-122 Sustainability $ 418,126
520-81-801 Resource Recovery $ 2,966,958
230-81-802 Non-Point Source $ 1,457,191
230-81-853 Storm Drain Fee $ -
230-81-854 General Fund Subsidy $ 11,990
230-81-855 Storm Drain Maintenance $ 585,050
Developmental Services $ 2,543,221
100-82-804 Plan Review $ 1,395,413
100-82-806 CIP Administration $ 1,147,808
Service Center $ 1,108,056
100-83-807 Service Center Administration $ 1,108,056
Grounds $ 6,792,673
560-84-268 Golf Grounds Maintenance $ 339,558
100-84-808 McClellan Ranch Park $ 195,091
100-84-809 Memorial Park $ 829,549
100-84-811 BBF Ground Maintenance $ 320,775
100-84-812 School Site Maintenance $ 1,498,026
100-84-813 Neighborhood Parks $ 2,571,070
100-84-814 Sport Fields Jollyman, Creekside $ 816,611
100-84-815 Civic Center Maintenance $ 221,993
Streets $ 10,676,100
270-85-820 Sidewalk Curb and Gutter $ 1,419,712
270-85-821 Street Pavement Maintenance $ 5,310,436
270-85-822 Street Sign Marking $ 773,774
100-85-848 Street Lighting $ 1,097,276
630-85-849 Equipment Maintenance $ 1,867,792
100-85-850 Environmental Materials $ 207,110
Trees and Right of Way $ 4,920,156
100-86-261 Trail Maintenance $ 222,833
100-86-824 Overpasses and Medians $ 1,789,535
100-86-825 Street Tree Maintenance $ 2,266,017
Total $ 47,545,655
FY 2025-26 Proposed Budget Public Works 358
417
CC 05-15-2025
417 of 655
100-86-826 Sheriff Work Program $ 641,771
Facilities and Fleet $ 6,412,391
560-87-260 BBF Golf Maintenance $ 112,649
100-87-827 City Hall Maintenance $ 506,171
100-87-828 Library Maintenance $ 1,347,650
100-87-829 Service Center Maintenance $ 555,292
100-87-830 Quinlan Community Center Maintenance $ 637,103 100-87-831 Senior Center Maintenance $ 375,834
100-87-832 McClellan Ranch Maintenance $ 300,636
100-87-833 Monta Vista Community Center Maintenance $ 237,282 100-87-834 Wilson Park Maintenance $ 181,494
100-87-835 Portal Park Maintenance $ 31,870
570-87-836 Sports Center Maintenance $ 920,491
100-87-837 Creekside Park Maintenance $ 133,489
100-87-838 Community Hall Maintenance $ 283,406
100-87-839 Teen Center Maintenance $ 2,167
100-87-840 Park Bathrooms Maintenance $ 168,840
100-87-841 Blackberry Farm Maintenance $ 549,423
100-87-852 Franco Traffic Operations Center $ 64,548
100-87-857 City Hall Annex $ 4,046
Transportation $ 7,259,697
100-88-265 Community Shuttle $ 4,070,272
100-88-844 Traffic Engineering $ 1,422,418
100-88-845 Traffic Signal Maintenance $ 737,456
100-88-846 Safe Routes 2 School $ 1,029,551
Non-Departmental $ 799,884
630-90-985 Fixed Assets Acquisition $ 799,884
Total $ 47,545,655
Budget Unit Program 2026 Proposed Budget
FY 2025-26 Proposed Budget Public Works 359
418
CC 05-15-2025
418 of 655
Budget at a Glance
2026 Proposed Budget
Total Revenues $ 16,383,811
Total Expenditures $ 47,545,655
Fund Balance $ (8,627,515)
General Fund Costs $ 24,375,996
% Funded by General Fund 51.3%
Total Staffing 89.1 FTE
Organization
Chad Mosley, Director of Public Works
The increase in staffing is due to the addition of one FTE in the Fleet & Facilities Division, enabling staff to respond more quickly and efficiently to maintenance requests and improving the overall functionality and safety of City facilities. Additionally, as part of an operational efficiencies strategy, three Part Time Maintenance Worker positions were combined into one FTE for the Trees and Right of Way Division.