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Background
On June 3, 2025, the City Council adopted the FY 2025-26 Adopted Budget, a $136.1 million spending plan funded by $133.7 million in revenue and $2.4 million in fundbalance. The adopted budget reflected a $68,966 increase from the proposed budget. As described in the City Manager’s First Quarter Financial Report, the budget was revised to account for encumbrances and carryover appropriations. As part of the FY2024-25 year-end close, additional funds were carried forward to FY 2025-26, amounting to $18.2 million in encumbrances and $68.3 million in budget carryovers. Thelargest encumbrances were for Capital Projects ($8.2 million), and the largest carryovers were for General Fund ($28.1 million). Furthermore, the FY 2025-26 Amended Budget includes Council-approved budget adjustments from July 1 to December 31, 2025, totaling $228,948,923 across all fundsprimarily due to negotiated increases for all bargaining groups The amended budget at the end of mid-year is $228.9 million, funded with $186.2 million in revenue and $42.7 million in fund balance. The amended budget is the adoptedbudget, plus encumbrances, carryovers, and Council-approved budget adjustments. The reflection of carryovers and encumbrances in the amended budget is a standardpractice in municipal budgeting and aligns with the amounts in previous years, which have been approximately $80 million. Carryovers and encumbrances areappropriations approved in prior years but have not yet been spent and are still required for ongoing projects or obligations.
CITY OF CUPERTINO
FY 2025-26 Mid-Year Financial ReportThe Administrative Services Department is pleased to present the Mid-Year Financial Report for FiscalYear 2024-25, covering the period from July 1, 2025 to December 31, 2025. This report serves as anupdate on the City's financial standing, providing the City Council, City leadership, and the public withimportant insights on the City's fiscal status. The City is committed to providing accurate and timely financial information, and this report reflects itsongoing efforts to maintain transparency and accountability.
Amended Budget
2023-24Adopted Budget 2023-24AmendedBudget Q2
2023-24AmendedBudget Q4
2024-25AmendedBudget Q1
2024-25AmendedBudget Q3
2025-26AmendedBudget Q2
Fiscal Year
0.0 50.0M
100.0M
150.0M
200.0M
Dollars
Public Works
Capital Projects
Community Development
Law Enforcement
Non Departmental
Parks and Recreation
Administrative Services
Innovation & Technology
Administration
Council and Commissions
Community Development
Flow of Funds Chart (in Millions)
General Fund Revenues, Expenditures, and Fund Balance
To date the City’s financial statement audit has yet to be issued and revenue, expenditure, and fund balance totals listed in this report are preliminary and subject to changeafter a full review by the City’s auditors. City staff does not anticipate many if any changes from the auditors.
December2020-21Actual
2021-22AmendedBudget Q2
June2021-22Actual
December2022-23Actual
2023-24Adopted BudgetDecember2023-24Actual
2024-25Adopted Budget2025-26AmendedBudget Q2
December2025-26Actual
Fiscal Year
0.0 100.0M
25.0M
50.0M
75.0M
125.0M
Dollars
Revenues
Expenses
-$9,709,408.28Revenues Less Expenses in Dec 2025
-$15M
-$10M
-$5M
$0
$5M
$10M
Dec 2021Dec 2023Dec 2025
$15,741,940.31Revenues Less Expenses in Jun 2025
$0
$5M
$10M
$15M
$20M
$25M
$30M
Jun 2021 Jun 2023 Jun 2025
General Fund Revenue and Expenditure Trends
As of December 31, 2025, General Fund revenues have totaled $134.6 million, representing 31.74% of the budgeted revenue. This is below the mid-year revenue range ofthe past three years, which was between 33% and 405%. General Fund expenditures have totaled $137.6 million, which is 38.08% of the budgeted appropriations*. This isbelow the mid-year expenditure range of the previous three years, which was between 43% and 53% of year-end actual expenditures. To ensure fiscal stability, staff willcontinue to closely monitor leading revenue sources throughout the year.
General Fund Revenues - Expenses at Mid-Year General Fund Revenues - Expenses at Year End General Fund Revenues - Mid-Year Actuals vs Budget
Data Updated Feb 20, 2026, 11:35 AM
12/202012/202112/202212/202312/202412/2025
31.74%In Revenues of $134,564,941.00 Budgeted through Dec 2025 General Fund Expenses - Mid-Year Actuals vs Budget
Data Updated Feb 20, 2026, 11:35 AM
12/202012/202112/202212/202312/202412/2025
38.08%In Expenses of $137,641,838.00 Budgeted through Dec 2025 $42,709,391.70Revenues in Dec 2025
$0
$20M
$40M
$60M
$80M
$100M
$120M
Dec 2020Dec 2021Dec 2022Dec 2023Dec 2025
$52,418,799.98Expenses in Dec 2025
$0
$20M
$40M
$60M
$80M
$100M
Dec 2020Dec 2021Dec 2022Dec 2023Dec 2025
$42,709,391.70Revenues in Dec 2025
Property Tax
Sales Tax
Charges for ...
Other
Use of Money
Intergovernm...
$52,418,799.98Expenses in Dec 2025
Contract Ser...
Employee Com...
Other
Employee Ben...
Cost Allocat...
Transfers Ou...
General Fund Revenues - Mid-Year vs Year End Actuals General Fund Expenses - Mid-Year vs Year End Actuals General Fund Revenues by Type General Fund Expenses by Type General Fund Classification of Fund Balance
As of mid-year, staff anticipate the General Fund will end FY 2025-26 with $185 million in fund balance, an increase of $29.0 million from the FY 2025-26 Adopted Budgetfund balance projection. The increase from the Adopted Budget is a result of both year-end revenues exceeding expenditures and budget savings achieved in the prior fiscalyear. It’s important to note that the only portion available for use, according to City policy, is unassigned funds. Committed funds are set aside for specific purposesdetermined by City Council resolution. Restricted funds, such as the Section 115 Pension Trust, are allocated for specific purposes stipulated by external resource providers.Assigned funds are reserved for encumbrances. Of the total fund balance, $89.7 million is unassigned and available to be used. Approximately $10.7 million of unassigned fund balance is attributed to Vallco Town Center plan check and building inspection revenues that were carried over. Theserevenues will continue to be carried over each year until the services are rendered, and the revenues are recognized.
Recommended Adjustments
The City's departments regularly evaluate their budget expenditures throughout the fiscal year to ensure they stay within their budget appropriations. In case of any variance,they can request budget adjustments as necessary as part of the quarterly reports. The budget adjustment requests are summarized in the table below.
Summary
The Mid-Year Financial Report shows the City is positioned as anticipated. City staff recommends adjustments of $663,616 in new appropriations, funded by $149,578 inrevenues and $514,038 in one-time fund balance. The City will continue to monitor its revenue and expenditure trends closely to ensure it remains on track toward achievingits budgetary goals and objectives.
City of Cupertino, California
Cupertino City Hall10300 Torre AvenueCupertino, CA 95014-3202 View the City Council Meeting AgendaView the City's BudgetsView the City's Financial Transparency Portal Powered by OpenGov