FISCAL YEAR 2026 – 2027
City of Cupertino
10300 Torre Ave.
Cupertino, CA 95014
cupertino.gov
Table of Contents
1) Introduction
Budget Message 1
Non-Profits Support Opportunities 3
City Organizational Chart and Our Mission 5
City Strategic Vision and Council Goals 6
Directory of City Officials 9
Commissions and Committees 10
2) Structure & Community
Budget Guide 12
Budget Overview 14
Community Economic Profile 26
Community Statistics 28
History 30
3) Financial Summaries
Financial Policies 32
All Funds Summary 33
Financial Overview by Fund 41
Flow of Funds Chart (Sankey) 43
All Funds Revenues 44
All Funds Expenditures 47
All Funds Expenditures by Department 49
All Funds Fund Balance 50
General Fund Forecast Pt1* (Overview-Expenditure) 51
General Fund Forecast Pt2*(Personnel Exp-Revenue Estimate) 65 General Fund Revenue (Fines/Forfeitures-Transfers In) pt.2 79 General Fund Revenue Comparison with Other Jurisdictions 83 General Fund Contribution Schedule 85
General Fund Summary 92
General Fund Revenues (Summary-Use of Money/Property) pt.1 93 General Fund Expenditures 106
General Fund Transfers 109
General Fund Fund Balance 110
Gann Appropriations Limit 112
Legal Debt Margin 114
4) Departments
Department Overview 115
City Council 119
100-10-100: City Council 122
100-10-101: Community Funding 124
100-10-104: Historical Society 127
100-10-110: Sister Cities 129
Economic Development Committee 131
Commissions 132
100-11-131: Tech, Info & Comms Commission 135
100-11-140: Library Commission 137
100-11-142: Arts and Culture Commission 139
100-11-150: Public Safety Commission 141
100-11-155: Bicycle and Pedestrian Commission 143
100-11-160: Parks and Recreation Commission 145
100-11-165: Teen Commission 147
100-11-170: Planning Commission 149
100-11-175: Housing Commission 151
100-11-180: Sustainability Commission 153
100-11-190: Audit Committee 155
Administration Department Overview 157
100-15-141: City Attorney 167
100-15-417: Insurance Administration 169
City Clerk Division Summary 171
100-13-130: City Clerk 173
100-13-132: Duplicating and Mail Services 175
100-13-133: Elections 177
City Manager Division Summary 179
100-12-120: City Manager 182
100-12-122: Sustainability 184
100-12-126: Office of Communications 186
100-12-305: Multimedia 188
100-12-307: Public Access Support 190
100-12-632: Community Outreach and Neighborhood Watch 191 100-12-633: Office of Emergency Management 193
100-12-705: Economic Development 196
100-14-123: City Manager Contingency 198
100-16-412: Human Resources 200
620-16-418: Workers Compensation Insurance 202
641-16-419: Long Term Disability 204
641-16-420: Compensated Absences 206
642-16-414: Retiree Benefits 208
Human Resources Division 210
Law Enforcement Department Overview 212
100-20-200: Law Enforcement 215
100-20-201: Interoperability Project 217
I&T department page 219
100-31-305: Video 220
100-32-308: Applications 223
610-30-300: Innovation & Technology Administration 226
610-34-310: Infrastructure 228
610-35-986: GIS 231
Administrative Services Department Overview 234
100-40-400: Administrative Services Administration 239
Finance Division Summary 241
100-41-405: Accounting 244
100-41-406: Business Licenses 246
100-41-425: Purchasing 248
100-41-426: Budget 250
Human Resources Division 252
100-44-412: Human Resources 254
100-44-417: Insurance Administration 256
620-44-418: Workers Compensation Insurance 258
641-44-419: Long Term Disability 260
641-44-420: Compensated Absences 262
642-44-414: Retiree Benefits 264
Parks and Recreation Department Overview 266
Cultural Events and Facilities Summary 272
100-61-602: Administration 274
100-61-605: Cultural Events 276
100-61-630: Facilities 278
Office of Emergency Services Division 280
100-65-632: Community Outreach and Neighborhood Watch 282 100-65-633: Office of Emergency Management 284
Parks and Recreation Administration Summary 286
100-60-601: Recreation Administration 288
100-60-636: Library Services 290
Youth, Teen, Senior and Events Summary 292
100-62-608: Administration 295
100-62-623: Senior Center 297
100-62-639: Teen Programs 299
100-62-640: Events 301
580-62-613: Youth Teen Recreation 303
Sports and Outdoor Summary 305
100-63-612: Park Facilities 308
560-63-616: Blackberry Farm Golf Course 310
570-63-621: Sports Center Operations 312
580-63-620: Outdoor Recreation 314
100-70-700: Community Development Administration 316
Community Development Department Overview 318
100-73-715 Building Code Enforcement 324
Building Division 327
100-73-713: General Building 330
100-73-714: Building Plan Review 332
100-73-718: Muni Code Enforcement 334
Code Enforcement Division 336
100-74-202: Code Enforcement 338
100-74-716: Building Abatement 340
100-72-720 Support for the Unhoused 342
Housing Services Division 344
100-72-712: Human Service Grants 347
260-72-707: CDBG General Admin 349
260-72-709: CDBG Capital/Housing Projects 351
260-72-710: CDBG Public Service Grants 353
265-72-711: BMR Affordable Housing Fund 355
Planning: Division Summary 357
100-71-701: Current Planning 360
100-71-702: Mid and Long Term Planning 362
100-71-705: Economic Development 364
Department Overview 366
100-80-800: Administration 381
Environmental Programs Division 383
100-81-122: Sustainability 385
520-81-801: Resource Recovery 387
230-81-802: Non-Point Source 390
230-81-853: Storm Drain Fee 393
230-81-854: General Fund Subsidy 395
230-81-855: Storm Drain Maintenance 397
Development Services Division 399
100-82-804: Plan Review 401
100-82-806: CIP Administration 404
100-83-807: Service Center Administration 406
Grounds Division Summary 408
100-84-813: Neighborhood Parks 410
100-84-814: Sports Fields Jollyman, Creekside 412
100-84-815: Civic Center Maintenance 414
100-84-808: McClellan Ranch Park 416
100-84-809: Memorial Park 418
100-84-811: BBF Ground Maintenance 421
100-84-812: School Site Maintenance 423
560-84-268: Golf Grounds Maintenance 426
Streets Division Summary 428
100-85-848: Street Lighting 430
100-85-850: Environmental Materials 432
270-85-820: Sidewalk Curb and Gutter 434
270-85-821: Street Pavement Maintenance 436
270-85-822: Street Sign Marking 438
630-85-849: Equipment Maintenance 440
Trees and Right of Way Division 442
100-86-261: Trail Maintenance 444
100-86-824: Overpasses and Medians 446
100-86-825: Street Tree Maintenance 448
100-86-826: Sheriff Work Program 450
Facilities and Fleet Division 452
100-87-827: City Hall Maintenance 454
100-87-828: Library Maintenance 456
100-87-829: Service Center Maintenance 458
100-87-830: Quinlan Community Center Maintenance 460
100-87-831: Senior Center Maintenance 462
100-87-832: McClellan Ranch Maintenance 464
100-87-833: Monta Vista Community Center Maintenance 466 100-87-834: Wilson Park Maintenance 468
100-87-835: Portal Park Maintenance 470
100-87-837: Creekside Park Maintenance 472
100-87-838: Community Hall Maintenance 474
100-87-839: Teen Center Maintenance 476
100-87-841: Blackberry Farm Maintenance 478
100-87-840: Park Bathrooms Maintenance 480
100-87-852: Franco Traffic Operations Center 482
100-87-857: City Hall Annex 484
560-87-260: BBF Golf Maintenance 486
570-87-836: Sports Center Maintenance 488
Transportation Division 490
100-88-265: Community Shuttle 492
100-88-844: Traffic Engineering 494
100-88-845: Traffic Signal Maintenance 497
100-88-846: Safe Routes 2 School 499
630-90-985: Fixed Asset Acquisition 501
Non-Departmental Department Overview 503
100-90-001: General Fund Non-Departmental 505
281-90-001: Tree Fund Non-Departmental 507
365-90-001: Debt Service Non-Departmental 509
365-90-500: Facility Lease Debt Service 510
429-90-001: Capital Reserve Non-Departmental 512
6) Appendix
Glossary of Budget Terminology 514
Commonly Used Acronyms 516
Revenues, Expenditures, and Fund Balance Table 518
CIP Schedule 520
Personnel Schedule 521
May 4, 2026
To our Cupertino community members, Honorable Mayor Moore, Vice Mayor, City Council Members, and staff, I am pleased to present the City’s Proposed Fiscal Year 2026-2027 budget. This proposed budget is the result of thoughtful planning and the dedicated efforts of the City Council and staff. This year, the organization has navigated a number of challenges and transitions while continuing to deliver essential services and advance Council priorities. Through disciplined financial management and the dedication of staff, we are proud to present a balanced budget that reflects both our current realities and our long-term commitments.
Since my appointment as the permanent City Manager, we have made several organizational changes to better align staffing and resources with service delivery needs. These adjustments have resulted in operational efficiencies, salary savings, and a structure that more accurately reflects the evolving needs of our community. While change can be complex, these efforts have strengthened our ability to remain responsive, adaptable, and focused on high-priority services.
I want to take a moment to recognize some other notable accomplishments from this past fiscal year. Below is a list of just a few of the projects we completed this past year:
Developed Strategic Plan and Vision Strategy process to better align the Strategic Plan, City Work Program, Capital Improvement Program, and the budget.
Celebrated the City’s 70 anniversary, which included an Art Showcase featuring more than thirty pieces of original artwork submitted by residents.
Continued citywide outreach to local businesses, including top sales tax–generating businesses, hotels, restaurants, and office tenants, to strengthen relationships with the City.
Launched multiple seasonal and event-based campaigns to promote local businesses and encourage community spending, including activations for Holiday Shop Local, Restaurant Week, The Big Game 2026, Dine Out July Fourth, collectively supporting local restaurants and retailers throughout the year.
Adopted an Oversized Vehicle ordinance and achieved 100% parking compliance to improve neighborhood safety and keep streets clear for residents and emergency access.
Reestablished the Legislative Review and Economic Development Committees and reconvened the City’s Disaster Council to improve coordination, informed decision-making, and long-term planning.
Restored the 4th of July Evening Fireworks to bring back a valued community tradition that brings residents together.
Selected a new Enterprise Resource Planning solution that will improve how the City manages finances and human resources, while making information more accessible and increasing transparency for residents.
Implemented a Business License Amnesty Program supported by a citywide awareness campaign, increasing compliance among unlicensed businesses. A full list of accomplishments is included in each department section within this book.
While we have achieved a great deal this past year, we continue to face challenges shared by cities across California, including the need to build more housing. To help address this, we approved 15 housing projects to expand Cupertino’s housing supply and meet growing demand. th
Budget Message
Proposed Budget Book FY 2026-2027 1
Our most significant challenge arose during the holiday closure on New Year’s Eve when we received a proposed 39% increase in our contract with the Santa Clara County Sheriff’s Office, an unexpected and substantial cost impact. Public safety remains the City’s top priority, and we are committed to ensuring we maintain strong, effective policing for our community.
In response, together with the cities of Saratoga and Los Altos Hills, we have submitted a joint counterproposal to Santa Clara County outlining a phased alternative to the County’s plan. The County’s proposal, presented on December 31, 2025, would have raised Cupertino’s annual contract cost from $19.0 million to $26.5 million beginning July 1, 2026, an increase of $7.5 million. These are staggering numbers.
In April, we hosted a virtual town hall, where residents across the three cities made it clear that we should be funding officers, not undefined overhead costs imposed by the County. The City’s negotiations efforts, which are ongoing, have resulted in a reduction of approximately $1.0 million annually bringing the proposed contract cost to $25.5 million as of April 13 . Stay up to date on this matter at https://sheriffcontractfacts.com/ Looking ahead, we remain focused on implementing the City Council’s Strategic Vision and City Work Program, ensuring that resources are aligned with community priorities. Departments will continue to refine service delivery, pursue efficiencies, and identify opportunities for innovation and collaboration.
While we have worked to remain a nimble and flexible organization, including the elimination of four vacant full-time positions, growth in the City’s adopted budget has remained below the rate of inflation over the past four years. Despite these efforts, we are now facing a significant financial challenge. Proposed increases in the Sheriff’s contract are expected to create a substantial budget shortfall in the years ahead.
We have maintained strong reserves and grown the unassigned fund balance through careful spending and strategic decision-making. We are projecting to end Fiscal Year 2025–26 with $178.0 million in General Fund fund balance. Despite these efforts, the scale of the anticipated contract increases will place increasing pressure on the budget moving forward.
The Fiscal Year 2026-27 Proposed Budget totals $155,528,145 across all funds with anticipated revenues of $150,588,099 and $4,940,046 use of fund balance, largely in CIP and Special Revenue funds for construction project. Within the General Fund, expenditures are $109,969,957, with anticipated revenues of $109,727,857 resulting in a modest surplus of $30,900.
Included in this Proposed Budget are a total of $2.46 million in budget requests, with $2.37 million and $88,609 in one-time and on-going expenditures, respectively. There are no additional funds being requested as part of the City Work Program.
This proposed budget reflects a collective effort, one shaped by the guidance of the City Council, the engagement of our community, and the commitment of City staff. Together, we will continue to build a resilient organization capable of meeting today’s challenges while preparing for tomorrow’s opportunities.
Thank you for your partnership and dedication to Cupertino’s future.
Tina Kapoor
City Manager
th
Proposed Budget Book FY 2026-2027 2
Community Festival Fee Waivers
The City is committed to partnering with local civic organizations to produce outstanding community and cultural festivals at Memorial Park, based on the City's festival policies. Event Organizers interested in holding a festival shall submit an application to determine eligibility and may request City sponsorship, through waiving a portion of or all the associated fees (with the exception of deposits). Waiving of festival fees is a separate process from event approval and requires City Council approval.
It is recommended that City Council approve a budget of $141,154.03 in festival fee waivers.
Community Funding Grant Program
Through the Community Funding Grant Program, the City provides funding to local non-profit organizations in the areas of social services, fine arts, and other programs for the Cupertino community. Non-profit organizations interested in requesting funding shall submit an application for City staff review. City Staff will review applications for completeness and review the qualifications and accuracy based upon the eligibility criteria set forth in the grant policy. The Parks and Recreation Commission will consider applications for a funding recommendation to Council.
It is recommended that City Council approve a budget $32,500 in Community Funding grants.
Non-Profit Organization FY 2026-27
Funding FY 2026-27 Program/Project/Event
Active Circle $2,000 Neuro-Inclusive Picnic with Purpose AINAK $1,550 Eyecare and Eyeglasses
Colorful Minds $1,500 Colorful Minds
Cupertino Symphonic Band $2,000 Music, Band Equipment, Rental Venue Fremont Union High Schools
Foundation $8,500 Environmental Education Classroom for theFremont Union High Schools District Non-Profits Support Opportunities
The City provides a range of funding opportunities for non-profit organizations.
Proposed Budget Book FY 2026-2027 3
Mind4Youth $2,500 HeartCare
No Time to Waste $4,000 GRoW: Grocery Rescue Weekly
Remember the ToothFairy $2,000 Dental Education Outreach Program Rotary Club of Cupertino $3,000 Pollinator Garden and McClellan Ranch Park Teens Talk $450 Cuper-Teens Got Laughs!
West Valley Community
Services $5,000 Gift of Hope 2026
Total $ 32,500
Sister City Funding
The City recognizes the value of developing people-to-people contacts as a way to further international communication and understanding. Sister City partnerships have proved very successful in fostering educational, technical, economic and cultural exchanges. The City has four active Sister Cities registered with Sister Cities International: Toyokawa, Japan; Hsinchu, Taiwan; Copertino, Italy; and Bhubaneswar, India.
Per City policy the following support is provided to the Sister Cities:
Sister Cities that host student delegations of four to nine students receive $2,500 a year in reimbursable funding
Sister Cities that host student delegations of more than 10 students receive $5,000 a year in reimbursable funding
Once every five years the City gives an extra $5,000 for an adult delegation The City provides access to large facilities for up to three community events per Sister City per year Sister City groups are provided up to 18 meeting room spaces per year Out of Cycle City Council Fee Waivers
Council approved an on-going permanent annual fee waiver of $5,880 towards three weekend book sales for Friends of the Cupertino Library at the July 8, 2019 City Council Meeting.
In Budget City Council Fee Waivers
Council approved a Cupertino Historical Society Agreement at the October 4, 2022 City Council Meeting. The City provides an annual amount of $40,000 to the Historical Society and allows the Historical Society to make use of the portion of the Quinlan Community Center. The term of the Agreement and the license granted expires June 30, 2026.
Prior Fiscal Years
To view non-profit support funding in prior fiscal years, please visit https://www.cupertino.gov/YourCity/Divisions/Finance/Non-Profits-Support-Opportunities Proposed Budget Book FY 2026-2027 4
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.
City Organizational Chart
City Organizational Chart & Our Mission
Proposed Budget Book FY 2026-2027 5
View dashboards:
City Improvement Program (CIP) Dashboard
City Work Program Dashboard
On February 28, 2026, the City Council participated in a workshop to reaffirm the City's Strategic Vision Framework adopted in 2025 and to discuss roles, responsibilities, and coordination of City programs, including the Budget, Capital Improvement Program (CIP), and the City Work Program.
Council had the opportunity to review and discuss the strategic planning framework that was adopted in 2025 and reaffirmed the goals, which guided the two-year Fiscal Year 2025-2027 City Work Program. Council provided feedback on ways to improve the next two-year process, which is scheduled to start in fall 2026.
Before looking at the next two-year cycle, staff will bring refinements to the strategic planning framework and the adoption of the City’s Strategic Plan in July.
This work will guide the City's ongoing implementation of the strategic vision illustrated below and help ensure City programs and services are coordinated, well-planned, and aligned with community needs. The City Council goal-setting 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 2025-27 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 was modified on December 1, 2025 to include ten new projects for a total of 29 priority items. These additional projects will require no additional funds to complete. In total, the entire FY 2025-2027 CWP has a total allocated budget of $3.32 million. The FY 2025-27 CWP will be reevaluated in early 2027 and updates will be reflected on the City Work Program webpage and dashboard.
City Strategic Vision and Council Goals
Proposed Budget Book FY 2026-2027 6
Proposed Budget Book FY 2026-2027 7
Proposed Budget Book FY 2026-2027 8
City Council
Kitty Moore Liang Chao J.R. Fruen Sheila Mohan R "Ray" Wang Mayor Vice Mayor Council Member Council Member Council Member Directory of City Officials
Tina Kapoor – City Manager
Kirsten Squarcia – Deputy City Manager
Floy Andrews – Contract City Attorney
Jonathan Orozco – Acting 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
Directory of City Officials
Proposed Budget Book FY 2026-2027 9
Click here to go to Council and Commission department page
ARTS AND CULTURE
COMMISSION
Archana Panda
Susan Chen
David Wang
Kiran Varshneya Rohra
Gurmeet Lamba
AUDIT COMMITTEE
Eno Schmidt
R "Ray" Wang
Hanyan Wu
Kitty Moore
William Wong
BICYCLE PEDESTRIAN
COMMISSION
Hervé Marcy
Gerhard Eschelbeck
Joel Wolf
Munisekaran Madhdhipatla
Ilango Ganga
ECONOMIC
DEVELOPMENT
COMMITTEE
Vacant
Claudio Bono
Jack Carter
Balaram Donthi
Jane Lin
Selina Kaing
Tracy Kosolcharoen
HOUSING COMMISSION
Connie Cunningham
Usha Narayan
Elida "Lida" Xhindi
Ram Sripathi
Jasmine Jose
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
Ravi Kiran Singh
Sapaharam
Sashikala Begur
Sidarth Rajaram
Gregory Klein
SUSTAINABILITY
COMMISSION
Alexander Fung
Conny Yang
Jack Carter
Susan Hansen
Sonali Padgaonkar
TEEN COMMISSION
Anushree Misra
Harly Liu
Chelsea Lau
Brianna Su
Sumedha Kumar
Rusheel Deshmukh
Jonathan Gao
Vinay Prakash
Saanvi Halambi
TECHNOLOGY,
INFORMATION &
COMMUNICATIONS
COMMISSION
Balaram Donthi
Emma Shearin
Commissions and Committees
Proposed Budget Book FY 2026-2027 10
Manjari Asawa
R "Ray" Wang
Jennifer Yip
Mukesh Garg
Prabir Mohanty
Sudeep Kumar
Proposed Budget Book FY 2026-2027 11
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 transmittal letter submitting the budget to the City Council. The Budget Message also summarizes the City’s current and long-term financial position, highlights new programs and organizational changes addressed in the budget, and outlines both short and long-term goals of our city government.
Budget Guide: This section includes the City’s Mission and other tools to assist the reader in identifying key terminology in the budget document.
Community Profile: This section describes Cupertino’s history, the economic and city profiles, community statistics, recreation and community services, education, and additional areas of interest in the city.
Financial Policies: This section provides financial policies.
All Funds Financial Schedules: This section provides financial information on projected revenues, expenditures, fund balances, and reserves for all funds.
General Fund Financial Schedules: This section provides financial information on projected revenues, expenditures, fund balances, and reserves for the General Fund. It also includes a long-term forecast of revenues, expenditures, and fund balance for the General Fund. Revenue and expenditure assumptions are discussed.
Departmental Operating Budgets: This section details historical and budgeted expenditures by operating department. The City is organized into eight key operating functions, including Council and Commissions, Administration, Law Enforcement, Innovation and Technology, Administrative Services, Parks and Recreation, Community Development, and Public Works. Each department budget includes a summary narrative, financial information for the department and each of its major divisions, and staffing information.
Expenditures for employee compensation and benefits are based on negotiated contracts. The materials categories of expenditures are based on a zero-base budget, with increases each year by the Consumer Price Index (CPI). Contract services are also based on a zero-based budget, with increases each year based on negotiated increases or CPI. Capital outlays are justified each year by the departments. Special Projects include one-time operational projects.
Non-Departmental Operating Budgets: This section details historical and budgeted expenditures for interfund transfers and debt service payments.
Capital Improvement Program (CIP): The Capital Improvement Program is in a separate document, called Capital Improvement Program, that details the proposed capital projects for the next five fiscal years. The fiveyear plan denotes funding sources and a description of each project. The City Council approves funding for capital projects yearly. The project may expend the funds over multiple years.
Budget Guide
Elements of the Budget Document
Proposed Budget Book FY 2026-2027 12
Proposed Budget Book FY 2026-2027 13
The Proposed Budget for the upcoming fiscal year highlights an increase in both expenditures and revenues compared to the previous year's Adopted Budget. Total expenditures are expected to be $155.5 million, a $19.5 million, or 14.3%, increase from the prior year Adopted Budget. Similarly, total revenues are anticipated to be $150.6 million, a $16.9 million or 12.7%, increase from last year's Adopted Budget.
FY 2026-27 General Fund expenditures, which supports the majority of City operations, are expected to be $109.7 million, an increase of $10.5 million or 10.6%, from the previous year's Adopted Budget. General Fund revenues are anticipated to be $109.7 million, which is a $12.5 million or 12.9%, increase from the previous year's Adopted Budget, resulting in an increase in fund balance of $.03 million. The FY 2026-27 General Fund's ending fund balance is projected to be $178.0 million.
Fund Type Proposed Revenues Proposed Expenditures Change in Fund Balance/Net Position General $ 109,727,857 $ 109,696,957 $ 30,900
Special Revenue $ 12,399,553 $ 9,766,776 $ 2,632,777
Debt Service $ 2,675,100 $ 2,675,100 -
Capital Projects $ 9,330,000 $ 14,235,000 $ (4,905,000) Enterprise $ 6,679,600 $ 8,514,580 $ (1,834,980)
Internal Service $ 9,775,989 $ 10,639,732 $ (863,743)
TOTAL $ 150,588,099 $ 155,528,145 ($ 4,940,046)
As shown in the chart below, the largest fund is the General Fund at 71%.
Total Amount (FY2027)
155,528,145
FY 2026-27 Proposed
GGeenneerraall FFuunndd::
110099,,669966,,995577 ((7700..5533%%))
General Fund:
109,696,957 (70.53%)
CCaappiittaall PPrroojjeecctt FFuunnddss::
1144,,223355,,000000 ((99..1155%%))
Capital Project Funds:
14,235,000 (9.15%)
IInntteerrnnaall SSeerrvviiccee FFuunnddss::
1100,,663399,,773322 ((66..8844%%))
Internal Service Funds:
10,639,732 (6.84%)
SSppeecciiaall RReevveennuuee FFuunnddss::
99,,776666,,777766 ((66..2288%%))
Special Revenue Funds:
9,766,776 (6.28%)
EEnntteerrpprriissee FFuunnddss::
88,,551144,,558800 ((55..4477%%))
Enterprise Funds:
8,514,580 (5.47%)
DDeebbtt SSeerrvviiccee FFuunnddss::
22,,667755,,110000 ((11..7722%%))
Debt Service Funds:
2,675,100 (1.72%)
General Fund
Capital Project Funds
Internal Service Funds
Special Revenue Funds
Enterprise Funds
Debt Service Funds
Budget Overview
Proposed Budget Book FY 2026-2027 14
Data Updated: May 05, 2026, 12:06 AM View Report
The graph below summarizes the changes in the City’s General Fund over the last five years:
The FY 2026-27 Proposed Budget funds a total of 211 positions, no change from the FY 2025-26 Adopted Budget.
Budget Roadmap
The budget roadmap graphic informs the Council and public of various touch points and components of the budget that are completed prior to the Proposed Budget Study Session and Final Budget Adoption. This year's budget roadmap is illustrated in the graphic below:
Proposed Budget Book FY 2026-2027 15
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 Budget Format Implementation Action Plan (IAP) was approved by Council on May 6, 2025.
The prior year adopted budget document (FY 2025-26) accomplished about half of the items listed in the IAP.
Staff continued to address items listed in the IAP during FY 2025-26. In July 2025, the Audit Committee formed a Budget Format Sub-Committee to review budget format changes and finalize recommendations. In fall 2025, staff and the Sub-Committee distributed a community survey and held a focus group, which emphasized keeping the PDF version alongside a new interactive format, with searchable content, enhanced AI features, and mobile-friendly visuals. In response, several enhancements were made to the online budget, including an interactive table of contents, inclusion of the CIP book, embedded financial policy documents, improved navigation for departments and divisions, added links to CIP dashboard and CWP dashboard, and added division summaries. The FY 2026-27 proposed budget document marks the first year that the City's proposed budget is built and presented utilizing OpenGov Publications.
Revised Fees
Matrix Consulting Group recently conducted a comprehensive fee study that was presented to City Council in February 2024. City Council approved the FY 2026-27 fee schedule in April 2026 with the newly adopted fees going into effect 60 days after adoption in July 1, 2026. Increased fee revenue has not been included in this budget due to the timing of new fee schedule adoption and preparation of the proposed budget document.
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 Committee reviews the policy and acts as an oversight committee on investments. The policy directs that an external auditor performs agreed-upon procedures to review City compliance with the policy. The Audit Committee reviewed and accepted the current Investment Policy on April 27, 2026. The City Council will consider the City's Investment Policy in May 2026.
Proposed Budget Book FY 2026-2027 16
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 putting 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 2026-27 GANN is not yet available from the State of California, Department of Finance. This will be updated as part of the final budget.
Reorganizations
The Administrative Services Department underwent a reorganization in mid FY 2025-26, transferring the Human Resources - Insurance Program to the City Attorney's Office and the Human Resources Division to the City Manager's Office.
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 $109.7 million, which is a $12.5 million or 12.9%, increase from the previous year's Adopted Budget. This is primarily due to the realignment of sales taxes and projected increases to interest earning and permits and licenses.
General Fund expenditures for the upcoming fiscal year are $109.7 million, an increase of $10.5 million or
10.6%, from the previous year's Adopted Budget. This is a result of budget requests totaling $2.5 million, including $2.4 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 negotiated personnel costs.
Although General Fund expenditures are increasing in FY 2026-27, 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:
Proposed Budget Book FY 2026-2027 17
In FY 2026-27, the General Fund's unassigned fund balance is projected to be $60.7 million, a decrease of $5.1 million, or 7.8%, from the FY 2025-26 Amended Budget (Year End Projected). Unassigned fund balance represents fund balance that is available for use and is not assigned, restricted, or committed. Total fund balance is estimated to be $178.0 million, an increase of $.03 million.
GENERAL FUND FUND BALANCE
Classification 2023-24 Actual 2024-25 Actual 2025-26 Adopted Budget 2025-26 Year End Projected 2026-27 Proposed Budget Percent Change Unassigned 25,965,405 56,081,637 43,275,717 65,879,182 60,734,992 -7.8% All Other Classifications 140,129,914 125,755,623 112,728,324 112,100,633 117,275,723 4.6% TOTAL FUND BALANCE 166,095,319 181,837,260 156,004,041 177,979,815 178,010,715 0.0% As shown in the graph below, the majority of General Fund resources are used to support Public Works (29.6%), Law Enforcement (23.9%), Community Development (11.9%), Non-Departmental (8.2%), Administrative Services (3.9%), Parks and Recreation (6.8%), Innovation Technology (3.7%) and Administration (10.9%). Non-Departmental expenditures are transfers to other funds.
Proposed Budget Book FY 2026-2027 18
Data Updated: Apr 29, 2026, 12:40 AM View Report
Total Amount (FY2027)
109,696,957
FY 2026-27 Proposed GF Exp By Dept
PPuubblliicc WWoorrkkss::
3322,,442299,,777799 ((2299..5566%%))
Public Works:
32,429,779 (29.56%)
LLaaww EEnnffoorrcceemmeenntt::
2266,,118888,,449988 ((2233..8877%%))
Law Enforcement:
26,188,498 (23.87%)
CCoommmmuunniittyy DDeevveellooppmmeenntt::
1133,,004444,,559977 ((1111..8899%%))
Community Development:
13,044,597 (11.89%)
AAddmmiinniissttrraattiioonn::
1111,,995544,,117700 ((1100..9900%%))
Administration:
11,954,170 (10.90%)
NNoonn DDeeppaarrttmmeennttaall::
99,,002244,,110000 ((88..2233%%))
Non Departmental:
9,024,100 (8.23%)
PPaarrkkss aanndd RReeccrreeaattiioonn::
77,,444499,,551166 ((66..7799%%))
Parks and Recreation:
7,449,516 (6.79%)
AAddmmiinniissttrraattiivvee SSeerrvviicceess::
44,,226655,,221155 ((33..8899%%))
Administrative Services:
4,265,215 (3.89%)
IInnnnoovvaattiioonn && TTeecchhnnoollooggyy::
44,,005588,,660066 ((33..7700%%))
Innovation & Technology:
4,058,606 (3.70%)
Public Works
Law Enforcement
Community Development
Administration
Non Departmental
Parks and Recreation
Administrative Services
Innovation & Technology
Council and Commissions
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 $9.8 million, which represents a decrease of $1.0 million compared to the FY 2025-26 Adopted Budget, primarily due to a decrease in special projects.
The Special Revenue Funds receive funding from two sources: $11.8 million in restricted department revenue and $0.6 million in transfers, resulting in a total funding of $12.4 million. The Special Revenue Funds are expected to end the year with a fund balance of $41.2 million, reflecting a decrease of $1.2 million from last year's Adopted Budget.
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 2025-26 Adopted Budget. The Debt Service Funds are funded by $2.7 million in transfers from the General Fund.
Capital Projects Funds
Capital Projects Funds are used for the acquisition or construction of major capital facilities and infrastructure.
Capital Projects Funds include the Capital Improvement Projects Fund, Stevens Creek Corridor Park Fund, and Capital Reserve Fund. These funds are used to finance the implementation of projects identified in the City's five-year Capital Improvement Program (CIP).
The Proposed Budget for Capital Projects Funds is $14.2 million, an increase of $10.0 million from last year's Adopted Budget. This increase is due to increased transfers from the Capital Reserve Fund to the Capital Improvement Projects Fund and an increase in CIP projects for the year.
The Capital Projects Funds are primarily funded through a combination of transfers from the General Fund, grants, donations, development impact fees, and other dedicated revenue sources. As projects are completed, any remaining funds are typically rolled over into the Capital Reserve Fund to be used for future projects.
Enterprise Funds
Proposed Budget Book FY 2026-2027 19
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 $8.5 million, a net decrease of $0.6 million, compared to last year's Adopted Budget amount. The Enterprise Funds are funded by $6.0 million in program revenue, $0.7 million in transfers in, and $1.8 million in reserves. The Enterprise Funds are projected to end the year with $4.2 million in reserves, a decrease of $0.7 million from last year's Adopted Budget. This decrease is due to the use of reserves, which were accumulated in previous years.
Internal Service Funds
Internal Service Funds are for goods or services provided to other City departments or governments on a costreimbursement basis. These funds include programs for innovation and technology, workers’ compensation, equipment, compensated absences, long-term disability, and retiree medical insurance.
The Proposed Budget for Internal Service Funds is $10.6 million, which is a net increase of $0.6 million, compared to last year's Adopted Budget. The Internal Service Funds are funded by $6.7 million in program revenue, $3.0 million in transfers from the General Fund, and $0.9 million in reserves. The Internal Service Funds are projected to end the fiscal year with $4.6 million in reserves, increasing by $1.8 million from last year's Adopted Budget.
City Council Work Program
Proposed Budget Book FY 2026-2027 20
Current Economic Update
National and State Economic Conditions
Proposed Budget Book FY 2026-2027 21
In early 2026, the U.S. economy is growing slowly, with mixed signals. Consumer spending has stayed fairly strong, but overall growth remains modest, around 1% to 2%, as some sectors weaken and businesses stay cautious.
The Federal Reserve has paused interest rate changes after earlier increases, keeping borrowing costs relatively high. Officials are being careful because inflation is still above their 2% goal, and recent global events, especially rising oil prices linked to conflict in the Middle East, have pushed inflation higher again.
Inflation has improved compared to its peak, but it remains a concern. Recent data shows it hovering around 3% or higher, partly due to increased energy costs. At the same time, the job market is still stable, with steady hiring and unemployment around the low-to-mid 4% range.
Looking ahead, economists are more uncertain than before. Some expect slow but continued growth, while others warn that higher inflation and global instability could weaken the economy further. Interest rate cuts that many expected in 2026 may now be delayed, as the Federal Reserve focuses on controlling inflation. Overall, the economy is holding up, but growth is slow, inflation remains a challenge, and uncertainty, especially from global events, is making the outlook less predictable.
As of March 2026, the U.S. unemployment rate stands at 4.3%, reflecting a slight increase from 4.2% in March 2025. According to the Employment Development Department, total employment in the San Jose–Sunnyvale– Santa Clara MSA, including San Benito County, increased by 3,600 jobs in February, reaching 1,166,200 jobs.
The largest gains were seen in professional and business services, which added 2,300 jobs, followed by private education and health services, which grew by 1,600 jobs. In contrast, the trade, transportation, and utilities sector experienced a decline of 1,700 jobs.
From a year-over-year perspective, total employment across the South Bay counties of San Benito and Santa Clara declined by 17,700 jobs, or 1.5%, from February 2025 to February 2026. Despite this overall decrease, several industries saw growth. Private education and health services reported the largest increase, adding Proposed Budget Book FY 2026-2027 22
11,700 jobs, while construction grew by 2,900 jobs and manufacturing added 1,500 jobs. Additionally, other services expanded by 1,300 jobs.
The California Association of Realtors reported that the median home price increased by 7.1% to $889,190 in March 2026, up from $885,900 in March 2025. This rise followed a typical seasonal pattern from February to March, although the year-over-year gain remained modest at 0.4%. C.A.R. noted that geopolitical tensions, higher mortgage rates, and financial market volatility kept sales subdued, even as prices continued to climb from February levels. Year-to-date statewide home sales in 2026 were down 1.3% compared to the same period in 2025.
Cupertino Economic Conditions
The Bureau of Labor and Statistics has yet to release the unemployment information specific to San Jose/Santa Clara area. This section will be updated as part of the Adopted Budget.
Based on data from Redfin, in March 2026, Cupertino home prices were up 16.2% compared to last year, selling for a median price of $3.4M.
Key Budget Assumptions
Revenue Assumptions
The City’s General Fund revenues rely heavily on property tax, sales tax, and transient occupancy tax (TOT).
The impacts of the California Department of Tax and Fee Administration (CDTFA) audit have now been realized, resulting in an ongoing reduction of approximately $30 million, or 28%, from prior projections. With the audit resolved, the City now has a more stable, albeit reduced, sales tax baseline.
Personnel Assumptions
FY 2026-27 salaries and benefits reflect the cost-of-living adjustments and health insurance contribution increases approved by the City Council in Fall 2025.
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 39% of employees are below Step 5.
Non-Personnel Assumptions
Proposed Budget Book FY 2026-2027 23
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. 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.
Projected CalPERS Contributions
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Projected Payroll $ 25,140,470 $ 25,844,403 $ 26,568,046 $ 27,311,952 $ 28,076,686 $ 28,862,833 Normal Cost (%) 10.1% 9.9% 9.7% 9.6% 9.4% 9.3%
Normal Cost $ 2,534,159 $ 2,558,596 $ 2,577,100 $ 2,621,947 $ 2,639,208 $ 2,684,243 UAL Payment (%) 16.4% 16.6% 17.9% 17.5% 17.0% 16.9%
UAL Payment $ 4,116,947 $ 4,284,000 $ 4,753,000 $ 4,775,000 $ 4,778,000 $ 4,866,000 Total Contribution (%) 26.5% 26.5% 27.6% 27.1% 26.4% 26.2% Total Contribution $ 6,651,106 $ 6,842,596 $ 7,330,100 $ 7,396,947 $ 7,417,208 $ 7,550,243 Proposed Budget Book FY 2026-2027 24
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 $45.5 million as of March 31, 2026, which can be utilized to fund pension costs.
Summary of Proposed Budget Requests by Department
Summary of CIP Projects
Project Program External Funding City Funding Total Proposed Budget Citywide Building Conditions FCA Implementation (annually funded) 420-99-063 1,250,000 1,250,000 City Hall Annex 420-99-248 - 5,000,000 5,000,000
BBG Golf Course Pro Shop Renovation 420-99-277 - 120,000 120,000 Sports Center Courts Resurfacing 420-99-278 - 210,000 210,000 SCB/SR 85 NB Ramp Intersection Improvements 420-99-279 600,000 - 600,000 Memorial Park Pickleball Sound Attenuation 420-99-280 150,000 150,000 Blesch Property Improvements 420-99-281 TBD TBD TBD
CIP Preliminary Planning & Design 420-99-047 125,000 125,000 Capital Project Support 420-99-048 50,000 50,000
TOTAL $ 600,000 $ 6,905,000 $ 7,505,000
Proposed Budget Book FY 2026-2027 25
Cupertino, with a population of 58,711 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 a mostly built-out city, the City focuses on business retention and revitalization, while at the same time, being supportive of redevelopment projects to bring in new investment. Cupertino is worldrenowned as the home to high-tech giants such as Apple Inc. and as a community with stellar public schools.
Companies like Amazon also maintain a presence in the area, contributing to the region’s strong tech ecosystem. De Anza College, one of the largest single-campus community colleges in the country, is another major employer and a magnet for attracting 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 attract 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, Stevens Creek Office Center and Mary Ave Villas. In 2026, the City approved a third modification to The Rise development.
With the 2025 Third Modification, the project continues to be a mixed use development with 2,669 units of housing, a reduced office area of approximately 1.475 million square feet and approximately 226,600 square feet of retail uses.
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, Somisomi, Sul & Beans, Kura Sushi, Vitality Bowls, Bishops Cuts/Colors, Keating Capezio, Philz Coffee, Pacific Catch, Holder’s Country Inn, and Koi Palace Contempo.
Housing, office, and the Residence Inn by Marriott and Main Street Cupertino Lofts 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, Tokyo Central, 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.
Community Profile
Community Economic Profile
Proposed Budget Book FY 2026-2027 26
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, 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, 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 Aloft Cupertino, Cupertino Hotel, Hilton Garden Inn, Hyatt 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 (Japanese Teishoku Restaurant), and Chipotle.
Apple Park
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 Visitor Center, Observation Deck, and café offer the public a place to learn, explore, and shop.
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Facts and Figures
Population in City Limits 58,711
Average Household Income $307,843
Average Age 54
Registered Voters 33,724
Democrats 15,317
Republicans 4,552
American Independent 597
Other 403
No Political Party Designated 12,855
Claritas Pop-Facts® Demographic Executive Report 2026 - City of Cupertino 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
A R Beck & Associates
Apple
Argonaut Window & Door
Benihana
BJ's Restaurant & Brewhouse
California Dental Arts
Chevron
Cupertino Car Wash 76
Cupertino Car Wash
Galpao Gaucho
Great Gas Cupertino
Haidilao Hot Pot
Insight Direct USA
Insight Public Sector
Lazy Dog café
Mirapath
Mojo Vision
PGA Tour Superstore
Ross
Rotten Robbie
Safeway
1 1
2 Community Profile
Community Statistics
Proposed Budget Book FY 2026-2027 28
Shane Co.
Target
TJ Maxx
Whole Foods Market
HdL Companies 4Q 2025 Sales Tax Update 2
Proposed Budget Book FY 2026-2027 29
“This place of San Joseph Cupertino has good water and much firewood, but nothing suitable for a settlement 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 often 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 settler, Elijah Stephens, a blacksmith from South Carolina, moved to the area—at this time, named simply ‘West Side’ and primarily owned by the government. After crossing over the Sierra Nevada in wagons, he discovered the true value of the land underneath the bush and proceeded to purchase over 300 acres of farmland to grow grapes and blackberries. Stephens pioneered the way for farmers, which established West Side as an agricultural hot spot. The land Stephens owned eventually became Blackberry Farm, and the road, creek, and reservoir were all named after him, although misspelled.
In the early West Side, many of the newest advances in agriculture were being developed. Settlers 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, attacking the roots of the grapevines, killing the grapes, and putting a halt to wine production. As a solution, nearly everything was replanted with fruit orchards. When the fruit trees blossomed, visitors would come to the orchards for “The Valley of Heart’s Delight” festivals, which celebrated the prosperous agriculture of the West Valley area.
Apart from the farmland, West Side was primarily known as a crossroads, an intersection between SaratogaSunnyvale Road and Stevens Creek. This served as a way station for travelers to pass through while going from town to town. As more people came to West Side to take advantage of the rich farmland, more family holdings gathered around the crossroads. Starting off as just a post office and home union store, West Side’s humble crossroads brought many diverse communities, all attracted by the preferable climate and profitable market for crops.
As more people were drawn to the area around the crossroads, the orchards were gradually replaced with modern houses for workers. The population steadily grew, and the face of West Side changed, progressing into a more modern town. The community wanted to rename the city, so as to not confuse it with other cities, as well as establish a unique identity. John T. Doyle, a lawyer from San Francisco, and writer of historical anthologies on the area chose the name “Cupertino” after the original name of the creek.
After 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, splitting 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.
Community Profile
History
Proposed Budget Book FY 2026-2027 30
By the 1970s, Cupertino once again began to undergo dramatic changes. The growing community attracted 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.
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.
Proposed Budget Book FY 2026-2027 31
Financial Policies
Financial policies can now be found at: https://www.cupertino.gov/budget in the Financial Policies accordion or scan the QR code below
Financial Policies
Proposed Budget Book FY 2026-2027 32
This section provides information on the FY 2026-27 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 2026-27 fund balance and individual revenue accounts are based upon a careful examination of the collection history and patterns 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.
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 $1.9 million. Intergovernmental revenue has decreased due to less revenue received for vehicle registration fees and gas tax. Similarly. transfers in from the General Fund have decreased.
REVENUE SOURCES 2023-24 2024-25 2025-26 2026-27
Actual Actual Adopted Budget Proposed Budget
Other Taxes $ 349,283 $ 1,555,568 $ 4,637,703 $ 4,532,926 Use of Money & Property $ 1,909,734 $ 2,318,032 $ 749,830 $ 775,606 Intergovernmental $ 5,084,582 $ 5,891,760 $ 5,351,721 $ 4,937,781 Charges for Services $ 1,524,539 $ 1,589,982 $ 1,504,373 $ 1,534,607 Miscellaneous Revenue $ 57,584 $ 5,933 $ 1,519 $ 1,633
Fines and Forfeitures $ 2,746 $ 2,970 $ 10,000 $ 3,000
Transfers In $ 3,449,019 $ 3,174,860 $ 2,067,000 $ 614,000 Total Revenue Sources $ 12,377,486 $ 14,539,104 $ 14,322,146 $ 12,399,553 All Funds Financial Schedules
All Funds Summary
Proposed Budget Book FY 2026-2027 33
Expenditures
Expenditure uses have decreased by $1.0 million. Special Projects are lower due to less special projects for the fiscal year.
EXPENDITURE USES 2023-24 2024-25 2025-26 2026-27
Actual Actual Adopted Budget Proposed Budget
Employee Compensation $ 1,664,054 $ 1,516,571 $ 1,602,256 $ 1,743,494 Employee Benefits $ 812,815 $ 1,464,495 $ 797,878 $ 804,100 Materials $ 655,235 $ 632,693 $ 1,013,894 $ 583,495
Contract Services $ 614,337 $ 444,272 $ 692,575 $ 724,800 Cost Allocation $ 1,220,614 $ 2,030,054 $ 2,197,032 $ 2,142,947 Capital Outlays $ 4,223,820 $ 1,652,950 $ 1,583,075 $ 1,747,075 Special Projects $ 994,423 $ 3,969,778 $ 2,908,412 $ 2,005,865 Contingencies - - - -
Transfers Out $ 1,182,951 $ 708,000 $ 15,000 $ 15,000
Total Expenditure Uses $ 11,368,250 $ 12,418,813 $ 10,810,122 $ 9,766,776 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.
CHANGES TO FUND BALANCE 2023-24 2024-25 2025-26 2026-27 Actual Actual Adopted Budget Proposed Budget
Beginning Balance $ 46,826,925 $ 47,836,161 $ 38,966,563 $ 38,611,729 Change in Fund Balance $ 1,009,236 $ 2,120,291 $ 3,512,024 $ 2,632,777 Ending Balance $ 47,836,161 $ 49,956,453 $ 42,478,587 $ 41,244,506 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 Proposed Budget Book FY 2026-2027 34
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.
REVENUE SOURCES 2023-24 2024-25 2025-26 2026-27
Actual
Actual Adopted Budget Proposed Budget
Use of Money & Property - - - -
Other Financing Sources - - - -
Transfers In $ 2,677,600 $ 2,677,450 $ 2,676,600 $ 2,675,100 Total Revenue Sources $ 2,677,600 $ 2,677,450 $ 2,676,600 $ 2,675,100 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.
EXPENDITURE USES 2023-24 2024-25 2025-26 2026-27
Actual
Actual Adopted Budget Proposed Budget
Debt Service $ 2,677,600 $ 2,676,200 $ 2,676,600 $ 2,673,600 Contract Services $ 1,500 $ 1,500 - $ 1,500
Transfers Out - - - -
Total Expenditure Uses $ 2,679,100 $ 2,677,700 $ 2,676,600 $ 2,675,100 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.
CHANGES TO FUND BALANCE 2023-24 2024-25 2025-26 2026-27 Proposed Budget Book FY 2026-2027 35
Actual
Actual Adopted Budget Proposed Budget
Beginning Balance $ 1,750 $ 250 $ 250 $ 0
Change in Fund Balance $ (1,500) $ (250) - -
Ending Balance $ 250 $ 0 $ 250 $ 0
Capital Project Funds
This fund pays for the acquisition of major capital facilities and/or construction of major capital projects.
Revenue
Revenue sources have increased by $5.3 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. Transfers in have increased due to an increase in Capital Improvement Projects (CIP).
REVENUE SOURCES 2023-24 2024-25 2025-26 2026-27
Actual Actual Adopted Budget Proposed Budget
Use of Money and Property $ 794,137 $ 824,607 - -
Intergovernmental $ 352,570 $ 2,656,151 - -
Charges for Services - - - $ 600,000
Miscellaneous $ 161,337 - - -
Transfers In $ 4,552,250 $ 12,838,354 $ 4,000,000 $ 8,730,000 Total Revenue Sources $ 5,860,294 $ 16,319,112 $ 4,000,000 $ 9,330,000 Expenditures
Expenditure uses have increased by $10.0 million due to more CIP projects this year.
EXPENDITURE USES 2023-24 2024-25 2025-26 2026-27
Actual Actual Adopted Budget Proposed Budget
Employee Compensation - - - -
Employee Benefits - - - -
Contract Services $ 249,182 $ 75,416 $ 225,000 $ 175,000 Proposed Budget Book FY 2026-2027 36
Capital Outlays $ 4,076,680 $ 5,981,619 $ 2,000,000 $ 7,330,000 Cost Allocation - - - -
Transfers Out $ 4,333,318 $ 9,171,267 $ 2,000,000 $ 6,730,000 Total Expenditure Uses $ 8,659,180 $ 15,228,303 $ 4,225,000 $ 14,235,000 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.
CHANGES TO FUND BALANCE 2023-24 2024-25 2025-26 2026-27 Actual Actual Adopted Budget Proposed Budget
Beginning Balance $ 34,924,537 $ 32,125,651 $ 16,602,346 $ 10,626,146 Change in Fund Balance $ (2,798,886) $ 1,090,809 $ (225,000) $ (4,905,000) Ending Balance $ 32,125,651 $ 33,216,460 $ 16,377,346 $ 5,721,146 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 are relatively unchanged from the last fiscal year.
REVENUE SOURCES 2023-24 2024-25 2025-26 2026-27
Actual Actual Adopted Budget Proposed Budget
Use of Money & Property $ 982,420 $ 958,845 $ 531,450 $ 501,550 Intergovernmental - - $ 14,812 $ 15,078
Charges for Services $ 6,080,846 $ 5,265,170 $ 5,044,822 $ 5,472,972 Fines and forfeitures - $ 200 - -
Miscellaneous Revenue $ 799,810 - - -
Transfers In - $ 1,059,253 $ 1,235,000 $ 690,000
Proposed Budget Book FY 2026-2027 37
Other Financing Sources - $ 1,950 - -
Total Revenue Sources $ 7,863,075 $ 7,285,419 $ 6,826,084 $ 6,679,600 Expenditures
Expenditure uses decreased by $0.6 million. The decrease is due to less special projects.
EXPENDITURE USES 2023-24 2024-25 2025-26 2026-27
Actual Actual Adopted Budget Proposed Budget
Employee Compensation $ 1,742,135 $ 1,874,554 $ 2,010,726 $ 2,128,091 Employee Benefits $ 1,020,726 $ 1,058,187 $ 746,937 $ 786,815 Materials $ 363,986 $ 433,841 $ 758,663 $ 585,750
Contract Services $ 3,870,517 $ 2,587,940 $ 3,578,026 $ 3,088,381 Contingencies - - - -
Cost Allocation $ 939,358 $ 1,577,430 $ 1,676,251 $ 1,742,496 Special Projects $ 286,326 $ 258,294 $ 160,000 -
Transfers Out $ 20,000 - - -
Other Financing Uses $ 185,989 $ 174,379 $ 222,567 $ 183,047 Total Expenditure Uses $ 8,429,036 $ 7,964,625 $ 9,153,170 $ 8,514,580 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.
CHANGES TO NET POSITION 2023-24 2024-25 2025-26 2026-27 Actual Actual Adopted Budget Proposed Budget
Beginning Balance $ 10,424,536 $ 9,858,576 $ 7,238,404 $ 6,077,470 Change in Net Position $ (565,960) $ (679,206) $ (2,327,086) $ (1,834,980) Ending Balance $ 9,858,576 $ 9,179,370 $ 4,911,318 $ 4,242,490 Proposed Budget Book FY 2026-2027 38
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 $1.2 million due to an increase in charges for services and transfers in. In FY 2023-24, the City resumed transfers to the Retiree Medical Fund because the City's Other PostEmployment Benefits (OPEB) plan is below 100% funded.
REVENUE SOURCES 2023-24 2024-25 2025-26 2026-27
Actual Actual Adopted Budget Proposed Budget
Use of Money & Property $ 341,084 $ 403,404 $ 99,701 $ 102,188 Intergovernmental Revenue - $ 110,496 - -
Charges for Services $ 4,171,856 $ 4,815,841 $ 5,331,124 $ 6,173,534 Miscellaneous $ 1,393,887 $ 2,575 - $ 4,000
Transfers In $ 1,417,684 $ 2,980,147 $ 2,616,053 $ 3,026,000 Other Financing Uses $ 30,750 $ 525,915 $ 553,531 $ 470,267 Total Revenue Sources $ 7,355,261 $ 8,838,378 $ 8,600,409 $ 9,775,989 Expenditures
Expenditure uses have increased by $0.6 million due to increase in materials, contract services and special projects.
EXPENDITURE USES 2023-24 2024-25 2025-26 2026-27
Actual Actual Adopted Budget Proposed Budget
Employee Compensation $ 1,942,297 $ 1,531,235 $ 1,720,661 $ 1,885,332 Employee Benefits $ 2,457,676 $ 2,115,629 $ 2,347,371 $ 2,360,208 Materials $ 1,460,904 $ 1,052,338 $ 1,297,849 $ 1,527,059 Contract Services $ 1,156,349 $ 2,048,626 $ 1,730,697 $ 1,932,318 Proposed Budget Book FY 2026-2027 39
Cost Allocation $ 57,622 $ 304,459 $ 949,737 $ 950,974
Special Projects $ 295,779 $ 123,698 $ 1,039,000 $ 1,250,000 Contingencies - - - -
Transfers Out $ 76,000 - - -
Other Financing Uses $ 546,696 $ 428,666 $ 926,453 $ 733,841 Total Expenditure Uses $ 7,993,323 $ 7,604,650 $ 10,011,768 $ 10,639,732 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.
CHANGES TO NET POSITION 2023-24 2024-25 2025-26 2026-27 Actual Actual Adopted Budget Proposed Budget
Beginning Balance $ 7,166,944 $ 6,528,882 $ 4,128,639 $ 5,445,794 Change in Net Position $ (638,062) $ 1,233,728 $ (1,411,359) $ (863,743) Ending Balance $ 6,528,882 $ 7,762,610 $ 2,717,280 $ 4,582,051 Proposed Budget Book FY 2026-2027 40
All Funds
Revenues
Revenues
Revenues 1,841,667
Sales Tax 16,903,174
Property Tax 35,939,222
Transient Occupancy Tax 7,676,155
Utility Tax 4,102,431
Franchise Fees 4,475,281
Other Taxes 6,296,327
Licenses and Permits 6,528,411
Fines and Forfeitures 416,760
Use of Money 8,014,156
Transfers In 15,750,100
Intergovernmental 10,184,080
Charges for Services 29,397,537
Miscellaneous Revenue 2,225,531
Other Financing Sources 837,267
REVENUES TOTAL 150,588,099
REVENUES TOTAL 150,588,099
Expenses
Expenses
Employee Compensation 31,855,227
Employee Benefits 15,157,616
Materials and Supplies 9,498,066
Contract Services 47,694,222
Contingencies 50,000
Special Projects 3,664,865
Cost Allocation 17,004,486
Debt Services 2,673,600
Transfers Out 15,750,100
Other Financing Uses 2,758,888
Capital Outlays 9,421,075
EXPENSES TOTAL 155,528,145
EXPENSES TOTAL 155,528,145
All Funds Financial Schedules
Financial Overview by Fund
PROPOSED BUDGET
FY2027
Proposed Budget Book FY 2026-2027 41
Proposed Budget Book FY 2026-2027 42
The three most important things to learn from this chart:
1. The chart above demonstrates how revenues (left to right) and expenditures (right to left) flow out of and into each type of City fund.
2. Where revenues meet expenditures at the center of the chart (fund line type), a gap to the left is indicative of expenditures exceeding revenue and a decrease in fund balance/savings for that type of fund.
3. A gap to the right is indicative of an increase in fund balance/savings for that type of fund.
All Funds Financial Schedules
Flow of Funds Chart (Sankey)
Proposed Budget Book FY 2026-2027 43
REVENUES
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Percent
Fund
Actual Actual Adopted Budget Proposed Budget Change
GENERAL FUND
100 General Fund $ 110,306,310 $ 115,352,915 $ 97,229,134 $ 109,727,857 $ 0 130 Investment Fund - - - - N/A
TOTAL GENERAL FUNDS $ 110,306,310 $ 115,352,915 $ 97,229,134 $ 109,727,857 12.9%
SPECIAL REVENUE FUNDS
210 Storm Drain Improvement $ 85,387 $ 7,453 $ 1,987 3,040 53.0% 215 Storm Drain AB1600
$ 180,071 $ 207,343 $ 148,661 48,132 -67.6%
230 Env Mgmt Cln Crk Strm Drain
$ 1,547,966 $ 2,033,491 $ 1,841,776 2,155,165 17.0%
260 CDBG
$ 381,373 $ 322,906 $ 688,342 453,147 -34.2%
261 HCD Loan Rehab
$ 4,270 $ 5,004 - - N/A
265 BMR Housing
$ 432,528 $ 817,269 $ 4,794,296 4,801,955 0.2%
270 Transportation Fund
$ 8,735,022 $ 9,013,807 $ 6,557,476 4,610,379 -29.7%
271 Traffic Impact
$ 42,780 $ 103,322 $ 16,658 18,657 12.0%
280 Park Dedication
$ 954,526 $ 2,007,420 $ 271,673 307,694 13.3%
281 Tree Fund $ 13,562 $ 21,089 $ 1,277 1,384 8.4%
TOTAL SPECIAL REVENUE FUNDS $ 12,377,486 $ 14,539,104 $ 14,322,146 $ 12,399,553 -13.4%
DEBT SERVICE FUNDS
All Funds Financial Schedules
All Funds Revenues
Proposed Budget Book FY 2026-2027 44
365 Public Facilities Corp $ 2,677,600 $ 2,677,450 $ 2,676,600 2,675,100 -0.1% TOTAL DEBT SERVICE FUNDS $ 2,677,600 $ 2,677,450 $ 2,676,600 $ 2,675,100 -0.1%
CAPITAL PROJECTS FUNDS
420 Capital Improvement Fund $ 5,231,023 $ 11,729,088 $ 2,000,000 7,330,000 266.5% 427 Stevens Creek Corridor Park $ 3,154 $ 3,418 - - N/A 429 Capital Reserve $ 626,117 $ 4,586,606 $ 2,000,000 2,000,000 0.0% TOTAL CAPITAL PROJECTS FUNDS $ 5,860,294 $ 16,319,112 $ 4,000,000 $ 9,330,000 133.2%
ENTERPRISE FUNDS
520 Resource Recovery $ 2,566,516 $ 2,290,568 $ 1,668,508 1,835,085 10.0% 560 Blackberry Farm $ 696,543 $ 955,356 $ 703,608 959,178 36.3% 570 Sports Center $ 2,428,478 $ 1,715,871 $ 2,332,718 1,590,701 -31.8% 580 Recreation Program $ 2,171,538 $ 2,323,623 $ 2,121,250 2,294,636 8.2% TOTAL ENTERPRISE FUNDS $ 7,863,075 $ 7,285,419 $ 6,826,084 $ 6,679,600 -2.1%
INTERNAL SERVICE FUNDS
610 Innovation & Technology $ 3,725,066 $ 4,296,655 $ 3,770,612 4,785,830 26.9% 620 Workers' Compensation $ 147,235 $ 665,895 $ 598,299 521,980 -12.8% 630 Vehicle/Equip Replacement $ 1,580,854 $ 1,574,268 $ 1,610,838 1,799,179 11.7% 641 Compensated Absence/LTD $ 514,147 $ 709,157 $ 674,607 1,052,000 55.9% 642 Retiree Medical $ 1,387,959 $ 1,592,404 $ 1,946,053 1,617,000 -16.9% TOTAL INTERNAL SERVICE FUNDS $ 7,355,261 $ 8,838,378 $ 8,600,409 $ 9,775,989 13.7% TOTALALL FUNDS $ 146,440,026 $ 165,012,378 $ 133,654,373 $ 150,588,099 12.7% Proposed Budget Book FY 2026-2027 45
Proposed Budget Book FY 2026-2027 46
EXPENDITURES
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Percent
Fund Actual Actual Adopted Budget Proposed Budget Change
GENERAL FUND
100 General Fund
82,767,330 99,610,975 99,189,741 109,696,957 0
130 Investment Fund
- - - - N/A
TOTAL GENERAL FUNDS $ 82,767,330 $ 99,610,975 $ 99,189,741 $ 109,696,957 10.6%
SPECIAL REVENUE FUNDS
210 Storm Drain Improvement
$ 2,065,949
-
- - N/A
215 Storm Drain AB1600
-
-
- - N/A
230 Env Mgmt Cln Crk Strm Drain
$ 1,799,544
$ 2,046,347
$ 2,054,231 2,029,087 -1.2%
260 CDBG
$ 569,670
$ 264,024
$ 490,162 453,801 -7.4%
261 HCD Loan Rehab
-
-
- - N/A
265 BMR Housing
$ 637,853
$ 583,274
$ 746,807 353,974 -52.6%
270 Transportation Fund
$ 5,686,337
$ 9,384,127
$ 7,503,922 6,914,914 -7.8%
271 Traffic Impact
-
-
- - N/A
280 Park Dedication
$ 593,897
$ 126,040
- - N/A
281 Tree Fund
$ 15,000
$ 15,000
$ 15,000 15,000 0.0%
TOTAL SPECIAL REVENUE FUNDS $ 11,368,250 $ 12,418,813 $ 10,810,122 $ 9,766,776 -9.7%
DEBT SERVICE FUNDS
All Funds Financial Schedules
All Funds Expenditures
Proposed Budget Book FY 2026-2027 47
365 Public Facilities Corp
$ 2,679,100
$ 2,677,700
$ 2,676,600 2,675,100 -0.1%
TOTAL DEBT SERVICE FUNDS $ 2,679,100 $ 2,677,700 $ 2,676,600 $ 2,675,100 -0.1%
CAPITAL PROJECTS FUNDS
420 Capital Improvement Fund
$ 5,268,932
$ 6,680,723
$ 2,225,000 7,505,000 237.3%
427 Stevens Creek Corridor Park
$ 5,950
-
- - N/A
429 Capital Reserve
$ 3,384,299
$ 8,547,580
$ 2,000,000 6,730,000 236.5%
TOTAL CAPITAL PROJECTS FUNDS $ 8,659,180 $ 15,228,303 $ 4,225,000 $ 14,235,000 236.9%
ENTERPRISE FUNDS
520 Resource Recovery
$ 2,247,781
$ 2,825,411
$ 2,966,958 2,415,228 -18.6%
560 Blackberry Farm
$ 673,789
$ 1,005,371
$ 999,305 1,081,122 8.2%
570 Sports Center
$ 3,113,580
$ 1,826,303
$ 2,515,928 2,186,760 -13.1%
580 Recreation Program
$ 2,393,886
$ 2,307,540
$ 2,670,979 2,831,470 6.0%
TOTAL ENTERPRISE FUNDS $ 8,429,036 $ 7,964,625 $ 9,153,170 $ 8,514,580 -7.0%
INTERNAL SERVICE FUNDS
610 Innovation & Technology
$ 4,462,499
$ 3,165,814
$ 4,384,216 4,958,529 13.1%
620 Workers' Compensation
$ 36,615
$ 434,100
$ 495,813 527,858 6.5%
630 Vehicle/Equip Replacement
$ 1,321,216
$ 1,310,326
$ 2,667,676 2,653,348 -0.5%
641 Compensated Absence/LTD
$ 771,045
$ 1,113,534
$ 786,752 861,945 9.6%
642 Retiree Medical
$ 1,401,947
$ 1,580,877
$ 1,677,311 1,638,052 -2.3%
TOTAL INTERNAL SERVICE FUNDS $ 7,993,323 $ 7,604,650 $ 10,011,768 $ 10,639,732 6.3% TOTALALL FUNDS $ 121,896,218 $ 145,505,065 $ 136,066,401 $ 155,528,145 14.3% Proposed Budget Book FY 2026-2027 48
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Percent
Department Actual Actual Adopted Budget Proposed Budget Change Administration
$ 6,318,520 $ 5,904,165 $ 6,424,053 $ 14,982,025 133.2% Administrative services $ 9,035,304 $ 11,430,034 $ 11,030,986 $ 4,265,215 -61.3% Capital projects $ 9,420,816 $ 9,026,673 $ 2,225,000 $ 7,505,000 237.3% Community development $ 11,866,677 $ 13,348,231 $ 12,913,298 $ 13,852,372 7.3% Council and commissions $ 953,857 $ 1,084,943 $ 1,124,233 $ 1,282,476 14.1% Information Services $ 7,276,900 $ 7,076,726 $ 7,846,869 $ 9,017,135 14.9% Law enforcement $ 16,204,350 $ 17,386,970 $ 19,542,688 $ 26,188,498 34.0% Non departmental $ 12,786,954 $ 25,083,871 $ 15,305,253 $ 18,444,200 20.5% Recreation services $ 10,902,176 $ 11,844,766 $ 12,108,366 $ 12,686,290 4.8% Public works $ 37,130,663 $ 43,318,685 $ 47,545,655 $ 47,304,934 -0.5% TOTAL $ 121,896,218 $ 145,505,065 $ 136,066,401 $ 155,528,145 14.3% All Funds Financial Schedules
All Funds Expenditures by Department
Proposed Budget Book FY 2026-2027 49
For descriptions of funds, see Financial Policies: Fund Structure.
All Funds Financial Schedules
All Funds Fund Balance
Proposed Budget Book FY 2026-2027 50
Overview
The City has reached resolution on the California Department of Tax and Fee Administration (CDTFA) Audit, and this budget focuses on the 10-year forecast following this resolution. While long-term projections may be less precise than short-term projections, they help identify potential structural budget issues in advance.
The Sheriff’s contract is the most significant cost driver impacting the City’s financial outlook and is the primary reason for the shift in the forecast from prior years. The projections reflect the latest proposal as of April 13, with an annual contract cost of approximately $25.5 million—an increase of $6.5 million from the current $19.0 million contract. This increase materially changes the City’s long-term financial trajectory and accelerates the onset of structural deficits.
With the CDTFA audit now in the City’s rearview window and a more certain—albeit reduced—sales tax revenue base, the forecast has shifted significantly. The following chart shows a structural deficit beginning in FY 2029-30 of approximately $134.8 thousand, growing to $3.9 million in FY 2030-31. This increase is largely attributed to the anticipated sunset of the Utility Users Tax (UUT) in FY 2030-31. The City is currently exploring an option to extend the UUT through a ballot measure in the November 2026 election to help secure a more financially stable future. Additional details will be provided as part of the FY 2026-27 Mid-Year Report, which will include an updated forecast.
The forecast assumes expenditures grow at an average annual rate of 2.58%, while revenues are projected to grow at an average annual growth rate (AAGR) of 1.60%. This imbalance contributes to the structural deficit in the later years of the forecast.
Although this forecast reflects improved certainty in revenue assumptions compared to prior projections, it represents a notable change from the FY 2025-26 Adopted Budget and prior forecast updates.
The results of the CDTFA audit have been finalized, resulting in an ongoing reduction of approximately $30 million, or 73%, in sales tax revenues, and an overall decrease of approximately $30 million, or 28%, in total General Fund Forecast
Proposed Budget Book FY 2026-2027 51
City revenues from the original FY 2023-24 forecast. While these impacts are significant, they are now fully incorporated into the City’s baseline and provide a more stable foundation for long-term financial planning.
Given the proposed and expected structural balance in the early years of the forecast, it is important that the City avoid reactive or premature service reductions. The primary driver of long-term fiscal pressure remains the Sheriff’s contract, for which negotiations are ongoing and not yet finalized. As such, maintaining current service levels while continuing to monitor developments and refine the forecast will be critical to ensuring thoughtful and strategic financial decision-making.
The City has worked to hold the line on expenditures in the near term, particularly in areas within its control, while continuing to face significant cost pressures from the Sheriff’s contract and personnel costs. Based on the updated forecast, deficits are now projected to begin earlier, in FY 2029-30, with a modest shortfall of approximately $134.8 thousand, growing to $3.9 million in FY 2030-31. This shift from prior forecasts is primarily driven by the proposed increase in the Sheriff’s contract.
In the out years, the deficit is further impacted by the anticipated sunset of the Utility Users Tax (UUT) in FY 2030-31. While prior forecasts included recessionary assumptions, the current forecast more clearly reflects ongoing structural cost pressures, particularly in law enforcement services.
Looking ahead, the City should continue evaluating long-term solutions to address the structural imbalance, including potential revenue measures such as extending the UUT, which will be further analyzed as part of the FY 2026-27 Mid-Year Financial Report.
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.
Proposed Budget Book FY 2026-2027 52
It is important to note that the forecast is not a plan but rather a model that relies on revenue and cost assumptions, which are updated regularly as new information becomes available. While cost projections, which are based on known costs, are relatively reliable, revenue forecasts are subject to uncertainties related to future economic conditions. Economic forecasts can change frequently, making it difficult to commit to a particular prediction of the future. As such, staff must update the forecast regularly to ensure it reflects the latest information and trends.
While economic conditions are the primary drivers for economically sensitive revenues such as sales tax and property tax, other factors drive non-economically sensitive categories such as utility user taxes and franchise fees. These revenue categories are more heavily impacted by utility rate changes, energy prices, and consumption levels. Revenues from local, state, and federal agencies are primarily driven by grant and reimbursement funding. As a result, these revenues experience no significant net gain or loss during economic expansions or slowdowns. All revenue projections are based upon trend analysis, including a careful examination of the collection history and patterns related to seasonality and the economic environment the City is most likely to encounter in the future. Staff also considered the 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.
National Economic Outlook
In early 2026, U.S. economic growth has shown modest recovery following the contraction experienced in the first quarter of 2025. Real gross domestic product (GDP) growth has stabilized, supported by continued consumer spending and business investment, though overall growth remains moderate. Trade activity has normalized compared to prior volatility, and while imports remain elevated, they have had a less pronounced drag on GDP than in the prior year.
Proposed Budget Book FY 2026-2027 53
The labor market has remained relatively resilient, with the unemployment rate continuing to hover around 4%.
Job growth has moderated compared to the rapid gains seen in prior years, and wage growth has begun to level off, suggesting a gradual cooling in labor market conditions rather than a sharp downturn.
Inflationary pressures have continued to ease. The Consumer Price Index (CPI) has trended downward toward the Federal Reserve’s long-term target of approximately 2%, with core inflation also moderating. While inflation remains above pre-pandemic norms in certain sectors, overall price stability has improved compared to the elevated levels experienced in recent years.
Cupertino Economic Outlook
The City does not anticipate significant impacts on property tax revenues in FY 2026-27. Transient occupancy tax (TOT) revenues have remained relatively flat, reflecting a slower and more measured recovery in business travel and related activity.
As the City’s business license amnesty program comes to an end and HdL, the City's recently contracted business license administrator, begins its discovery efforts, the City anticipates an increase in business license revenue. However, this potential growth is not reflected in the proposed budget, as staff would like to see these revenues materialize before incorporating them into ongoing projections.
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 primary revenue sources—property tax, sales tax, and transient occupancy tax (TOT)—which together comprise the majority of General Fund revenues.
General Fund revenues are projected at $109.7 million in FY 2026-27 and are expected to grow modestly over the forecast period. Property tax and TOT are anticipated to remain stable and consistent revenue sources, with incremental growth. Sales tax revenues are also expected to grow at a more predictable rate following recent adjustments related to the CDTFA audit.
The forecast incorporates periodic economic downturns based on guidance from the National Bureau of Economic Research (NBER), which defines a recession as a significant and broad-based decline in economic activity lasting more than two quarters. Historically, recessions have occurred approximately every 6 to 7 years. Consistent with this pattern, the forecast includes a recession scenario in FY 2027-28, during which most revenues are assumed to remain flat while expenditures continue to increase. This represents a change from prior assumptions of more frequent recession cycles and aligns with updated guidance from Baker Tilly.
Per City Council direction in April 2025, as part of the Budget Format Review, the forecast now includes 10 years of historical actual data alongside 10 years of projected data for each revenue category.
Proposed Budget Book FY 2026-2027 54
Proposed Budget Book FY 2026-2027 55
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 remitted 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 2.58% in the forecast. Staff used moderate estimates for business and industry, general consumer goods, restaurants and hotels, and state and county pools.
Proposed Budget Book FY 2026-2027 56
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 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 2026-27, property tax revenues are expected to reach $35.9 million and increase at an average annual growth rate of 2.58% 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 Proposed Budget Book FY 2026-2027 57
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
The City's current forecast assumes that TOT revenues will be $7.7 million in FY 2026-27 and gradually increase. The forecast projects an average annual growth rate of 1.89% 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.
Proposed Budget Book FY 2026-2027 58
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 shift 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 2025-26 is due to Rise revenues that are currently budgeted.
Proposed Budget Book FY 2026-2027 59
Charges For Services
Charges for services revenues are projected to increase at an average annual growth rate of 2.91%. 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.
Proposed Budget Book FY 2026-2027 60
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 1.59% based on a trend of historical data.
Other taxes are made up of construction, property transfer, and business license tax revenue. Revenue is projected to increase by an average of State and County CPI.
Use of money and 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
Proposed Budget Book FY 2026-2027 61
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 approximately $24 million in budget-balancing measures across the two years. These efforts were primarily driven by reductions in materials and contracts (notably in street maintenance and training and development), staffing adjustments, and reduced transfers to other funds.
In FY2025-26, staff is requested 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.
In FY 2026-27, the most significant change to the City’s expenditure forecast is the proposed increase in the Sheriff’s contract, which reflects an increase of approximately $6.5 million over the current year. This increase represents the primary cost driver impacting the City’s overall expenditure growth.
To inform these projections, the City developed a forecast based on actual expenditures in prior years and current year estimates. The forecast also considers key factors such as CPI, construction and development activity, and CalPERS Normal Cost and Unfunded Liability projections, including the Additional Discretionary Payment (ADP) made in December 2024. The forecast will continue to be refined throughout the year to account for one-time changes and budget adjustments.
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.
Proposed Budget Book FY 2026-2027 62
The chart above illustrates the projected General Fund expenditures, which are estimated to be $108.3 million in FY 2026-27, 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 Proposed Budget Book FY 2026-2027 63
expenditure categories in the General Fund Forecast, the following discussion focuses on the assumptions made for each category.
Proposed Budget Book FY 2026-2027 64
Personnel Expenditures
Salaries
FY 2026-27 salaries and benefits reflect the cost-of-living adjustments (COLA)s approved by the City Council in the Fall of 2025. Additionally, 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, in alignment 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. Historically, approximately 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 2026-27, health benefits account for approximately 10.2% of total personnel costs in the General Fund, primarily driven by health insurance expenses. The City provides employees with a fixed contribution toward health and dental insurance costs, rather than covering a percentage of premiums.
During Fall 2025, the City Council approved updated health benefit provisions. Beginning in plan years subsequent to 2025, the City’s maximum contributions for medical premiums are tied to increases in the CalPERS Kaiser Permanente plan. These increases are capped at no more than 20% of the total aggregate premium increase between 2025 and 2028. Any premium costs above the City’s contribution are the responsibility of the employee.
This structure provides greater cost predictability for the City while maintaining competitive health benefit offerings for employees.
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
Similar to the health insurance, all other benefits follow an increase of 3.17% in subsequent years of the forecast.
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 General Fund Forecast (Cont.)
Proposed Budget Book FY 2026-2027 65
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 currently assumed to grow at CPI plus 2% (approximately 4.5% to 5%) in the forecast. However, recent proposals from the County indicate a shift away from a capped annual increase, instead reflecting annual adjustments based on actual costs.
The City’s current agreement with the Santa Clara County Sheriff’s Office is set to expire in June 2026, and negotiations remain ongoing. The most recent proposal reflects a significant increase in the base contract cost, as discussed earlier in this report, and introduces additional uncertainty in projecting long-term growth rates. As such, the assumed growth rate in the forecast will be reassessed once negotiations are finalized.
Law enforcement costs have been, and are expected to remain, a primary driver of the City’s expenditure growth in the coming years.
Cost Allocationis projected to grow by 2.75%.
Capital Outlays andSpecial Projects are projected to increase by CPI. Capital Outlays and Special Projects are being reduced as an expenditure-reduction strategy.
Contingencies are only found in the City Manager's Contingency Fund at $50,000, unchanged since FY 2023- 24 with no escalator for these funds in the forecast.
Transfers represent 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. After the implementation of a comprehensive Cost Allocation Plan in FY 2015-16, General Fund expenses have been shifted 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 shift; however, after 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. Suspended for FY 2026-27, as sufficient discretionary funds are held in the Transportation Fund to support operations for the fiscal year.
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: Funded at expected normal costs. ~$1.6 million annually.
Compensated Absences Fund: $0.6 million annually
Enterprise Funds: Dependent on the need to maintain operations. ~$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 prior years to maintain strong reserves continues to position the City well to navigate financial uncertainty.
The General Fund’s Unassigned fund balance remains healthy and provides flexibility to address potential funding gaps. In addition, the General Fund’s Committed and Restricted fund balances include:
Proposed Budget Book FY 2026-2027 66
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 2026-27, the General Fund’s total fund balance is projected to be $178.0 million, of which $65.9 million is Unassigned. While these reserves provide a strong financial foundation, ongoing uncertainty surrounding the Sheriff’s contract, particularly the magnitude and structure of future cost increases, continues to be a significant factor influencing the City’s long-term financial outlook. Maintaining these reserves will be critical as negotiations progress and future cost obligations become more defined.
Proposed Budget Book FY 2026-2027 67
Proposed Budget Book FY 2026-2027 68
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.
PotentialStrategy 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 fund has
a balance of
$25.9
million.
Yes
1 Proposed Budget Book FY 2026-2027 69
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.
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
$45.5
million.
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
$62.0
million.
Yes
Economic
Uncertainty
Reserve
The General Fund Economic Uncertainty
Reserve may be used to mitigate
potential shortfalls.
The reserve
has a
balance
of $21.3
million.
No
Balance as of March 31, 2026
Projected balance as of May 4, 2026
Expenditure Reduction Strategies
PotentialStrategy 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
$250,000 approximate based
on a 5% rate increase
No
1 1
2 1
2 Proposed Budget Book FY 2026-2027 70
rates with
employees. Would
be subject to
bargaining unit
agreement.
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
Potential
Strategy
Description
Potential
Impact
Currently
Recommended
¼ Cent
Transaction and
Use Tax (TUT)
Voter approval is required.
Could increase sales tax from 9.750% to
10.0%
$5.4 million No
Transient
Occupancy Tax
Voter approval is required. $1.25M at
$7.5M base
No
1 Proposed Budget Book FY 2026-2027 71
(2% increase) Could increase transient occupancy tax
from 12% to 14%
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
User Utility Tax
(UUT)
Voter approval is required
Continuation of existing tax
$4.0 M to
$5.0 M
Neutral
Increase fees
and costrecovery
Matrix Consulting Group conducted a fee
study in 2023. The study assessed the
potential for fee increases and cost
recovery. The City Council adopted the
new fee schedule in May 2024.
Varies Yes
Sale of Cityowned
Properties or
Assets
The sale of city-owned assets would
generate one-time revenue. Varies No
HdL estimate as of July 2023
Development Revenue Estimates
The City's current forecast does not incorporate potential significant development projects that are pending approval and 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.
1 Proposed Budget Book FY 2026-2027 72
Proposed Budget Book FY 2026-2027 73
Proposed Budget Book FY 2026-2027 74
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These estimates are intended to provide a general idea and should be considered rough approximations. The timing of projects represents the Community Development department's best estimate of when a project is anticipated to commence. It's important to note that these estimates are subject to change as additional information becomes available.
The estimate assumes an increased value of the improvements but not an increased value of the land. The increased value of the improvements is based on the number of bedrooms for residential properties and 1 2
Proposed Budget Book FY 2026-2027 77
square footage for hotels, retail, or office properties. The average market values of residential properties are from Zillow.
The estimate is calculated by multiplying the proposed retail square footage by the average sales tax revenue per square foot of retail from HdL 2023 Q1 Sales Tax Reports.
The estimate is calculated by multiplying the number of proposed rooms in the hotel by the RevPAR (Revenue Per Occupied Room) and Transient Occupancy Tax rate (12%). RevPAR is the Average Daily Rate (ADR) multiplied by the Occupancy Rate. The average ADR and Occupancy Rate over the last year for hotels in Cupertino are from HdL.
3 4
Proposed Budget Book FY 2026-2027 78
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 2025-26, this revenue source is expected to reach $410,760. Revenues in FY 2026-27 are expected to slightly increase 0.7% from the prior year adopted budget driven by an expected rise in citations issued as the Code Enforcement division reached full staffing in the prior fiscal year.
FINES AND FORFEITURES
FY 24-25 Actual 394,405
FY 25-26 Adopted 410,760
FY 25-26 Estimate 410,760
FY 26-27 Proposed 413,760
% of General Fund 0.38%
% Change from FY 25-26 Adopted 0.73%
General Fund Revenues
Proposed Budget Book FY 2026-2027 79
Intergovernmental
Intergovernmental revenues are made up of federal, state, and regional grants, including miscellaneous intergovernmental revenue.
FY 2026-27 revenues in this category are anticipated to be 46.6% higher than the prior year adopted budget primarily attributed to an increase in anticipated state grant revenues for the community shuttle as well as anticipated funds received from other cities for the community shuttle.
INTERGOVERNMENTAL
FY 24-25 Actual 2,962,429
FY 25-26 Adopted 3,569,332
FY 25-26 Estimate 8,091,726
FY 26-27 Proposed 5,231,221
% of General Fund 4.77%
% Change from FY 25-26 Adopted 46.56%
Miscellaneous Revenue
Miscellaneous revenues account for unanticipated revenues such as donations and administrative fees.
FY 2026-27 miscellaneous revenues are budgeted 33% 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
MISCELLANEOUS REVENUE
FY 24-25 Actual 2,056,694
FY 25-26 Adopted 1,668,815
FY 25-26 Estimate 1,669,115
FY 26-27 Proposed 2,219,898
% of General Fund 2.02%
% Change from FY 25-26 Adopted 33.02%
Proposed Budget Book FY 2026-2027 80
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 2026-27, revenues are projected to be relatively consistent with the prior year Adopted Budget.
OTHER FINANCING SOURCES
FY 24-25 Actual 3,619,142
FY 25-26 Adopted 367,000
FY 25-26 Estimate 636,231
FY 26-27 Proposed 367,000
% of General Fund 0.33%
% Change from FY 25-26 Adopted 0.00%
Transfers In
Transfers In represent the movement of funds from one City fund to another, the General Fund in this case.
In FY 2024-25, actual transfers were high due to a transfer in from the Capital Reserve for the I-280/Wolfe project. In FY 2026-27, the City plans to transfer $15,000 from the City's Tree Fund to the General Fund to support ongoing tree maintenance operations.
TRANSFERS IN
FY 24-25 Actual 348,333
FY 25-26 Adopted 15,000
FY 25-26 Estimate 15,000
FY 26-27 Proposed 15,000
% of General Fund 0.01%
% Change from FY 25-26 Adopted 0.00%
Proposed Budget Book FY 2026-2027 81
Proposed Budget Book FY 2026-2027 82
The table below shows General Fund Revenue Comparisons with neighboring jurisdictions for FY 2022-23 through FY 2025-26. It shows general fund revenue totals and population. Population data is from the California Department of Finance. This information will be updated as part of the final budget.
City 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Adopted
Milpitas
General FundRev
Population
126,290,558
80,923
134,109,832
81,980
138,475,700
82,401
143,852,752
81,915
Campbell
General FundRev
Population
63,029,077
43,201
64,774,966
43,320
68,719,281
43,377
69,023,160
43,281
Cupertino
General FundRev
Population
112,637,639
59,644
110,306,310
59,861
89,804,468
59,887
97,229,134
59,831
Fremont
General FundRev
Population
291,057,000
228,918
264,767,000
232,533
254,859,000
232,241
271,511,000
232,619
Hayward
General FundRev
Population
210,724,360
159,986
216,601,000
162,049
216,360,000
161,977
219,714,000
162,359
Mountain
View
General FundRev
Population
181,989,739
84,199
182,380,725
84,731
184,143,980
86,674
195,663,650
86,513
Palo Alto
General FundRev
Population
232,854,000
67,905
254,419,000
68,468
258,406,000
68,570
269,239,000
68,794
San Jose
General FundRev
Population
1,703,746,677
969,249
1,450,459,396
978,546
1,469,172,136
980,1743
1,515,974,724
979,415
San Leandro
General FundRev
Population
140,251,186
87,998
114,723,140
88,594
143,417,936
88,124
149,937,984
87,813
General Fund Revenue Comparison with
Other Jurisdictions
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Santa Clara
General FundRev
Population
1,480,655,964
130,460
296,883,329
133,469
297,570,993
133,829
337,445,775
134,587
Sunnyvale
General FundRev
Population
246,561,835
156,200
264,701,779
158,006
260,170,872
158,948
275,474,846
159,673
Proposed Budget Book FY 2026-2027 84
Fund Type/Budget Unit Description Proposed Budget Revenues Proposed Budget
Expenditures
Proposed Budget
Change in Fund
Balance/Net Position
Proposed Budget General Fund Contribution
GENERAL FUND
10 City Council
100-10-100 City Council $ 107,149 $ 594,106- $ 486,957
100-10-101 Community Funding - $ 33,087 - $ 33,087
100-10-104 Historical Society - $ 40,000
- $ 40,000
100-10-110 Sister Cities - $ 69,482 - $ 69,482
11 Commissions
100-11-131 Telecommunication Commission - $ 26,947 - $ 26,947 100-11-140 Library Commission - $ 29,831
- $ 29,831
100-11-142 Arts and Culture Commission - $ 33,272 - $ 33,272 100-11-150 Public Safety Commission - $ 18,760 - $ 18,760 100-11-155 Bike/Ped Safety Commission - $ 16,554- $ 16,554 100-11-160 Recreation Commission - $ 31,632 - $ 31,632
100-11-165 Teen Commission - $ 16,112
- $ 16,112
100-11-170 Planning Commission - $ 270,818- $ 270,818
100-11-175 Housing Commission - $ 47,965 - $ 47,965
100-11-180 Sustainability Commission - $ 19,002
- $ 19,002
100-11-190 Audit Committee - $ 34,908 - $ 34,908
12 City Manager
100-12-120 City Manager $ 1,370,726 $ 1,990,545 - $ 619,819 100-12-122 Sustainability - - - -
100-12-126 Office of Communications $ 402,005 $ 518,066 - $ 116,061 100-12-305 Video - - - -
100-12-307 Public Access Support - - - -
100-12-632 Comm Outreach & Neigh Watch - - - -
100-12-633 Disaster Preparedness $ 160,240 $ 929,395 - $ 769,155 100-12-705 Economic Development - $ 601,291 - $ 601,291 13 City Clerk
100-13-130 City Clerk $ 248,811 $ 1,131,022
- $ 882,211
100-13-132 Duplicating/Mail Services $ 33,583 $ 45,366 - $ 11,783 100-13-133 Elections $ 12,500 $ 161,351 - $ 148,851
14 City Manager Discretionary
100-14-123 City Manager Contingency - $ 50,000- $ 50,000 15 City Attorney
100-15-141 City Attorney $ 262,501 $ 1,965,847 - $ 1,703,346 100-15-417 Insurance Administration $ 1,957,317 $ 2,945,536 - $ 988,219
General Fund Contribution Schedule
Proposed Budget Book FY 2026-2027 85
16 Human Resources
100-16-412 Human Resources $ 1,183,437 $ 1,615,751
- $ 432,314
20 Law Enforcement
100-20-200 Law Enforcement SC Sheriff $ 2,277,820 $ 26,188,498 - $ 23,910,678 100-20-201 Interoperability Project - - - -
31 I&T Video
100-31-305 Video $ 108,337 $ 1,417,554
- $ 1,309,217
32 I&T Applications
100-32-308 Applications $ 1,807,503 $ 2,641,052- $ 833,549 40 Administrative Services
100-40-400 Admin Services Administration $ 40,747 $ 460,043 - $ 419,296 41 Finance
100-41-405 Accounting $ 1,915,064 $ 2,175,462
- $ 260,398
100-41-406 Business Licenses - $ 311,179 - $ 311,179
100-41-425 Purchasing $ 540,465 $ 692,391 - $ 151,926
100-41-426 Budgeting $ 609,460 $ 626,140
- $ 16,680
44 Human Resources
100-44-412 Human Resources - - - -
100-44-417 Insurance Administration - - - -
60 Recreation & Community Service
100-60-601 Recreation Administration - $ 1,936,769 - $ 1,936,769 100-60-634 Park Planning and Restoration - - - -
100-60-636 Library Services - - - -
Fund Type/Program Description Proposed Budget
Revenues
Proposed Budget
Expenditures
Proposed Budget
Change in Fund
Balance/Net Position
Proposed Budget General Fund Contribution
61 Business and Community Services
100-61-602 Administration - $ 584,742 - $ 584,742
100-61-605 Cultural Events $ 31,000 $ 606,254
- $ 575,254
100-61-630 Facilities $ 188,000 $ 518,090 - $ 330,090
62 Recreation and Education
100-62-608 Administration $ 90,000 $ 868,970 - $ 778,970 100-62-623 Youth, Teen and Senior Adult Rec $ 456,500 $ 871,032- $ 414,532 100-62-639 Youth and Teen Programs $ 9,590 $ 270,615 - $ 261,025 100-62-640 Neighborhood Events $ 18,500 $ 80,796
- $ 62,296
63 Sports, Safety & Outdoor Rec
100-63-612 Park Facilities $ 246,400 $ 1,712,248- $ 1,465,848 100-63-615 Administration - - - -
Proposed Budget Book FY 2026-2027 86
70 Planning & Community Development
100-70-700 Community Development Admin $ 200,000 $ 595,584 - $ 395,584
71 Planning
100-71-701 Current Planning $ 1,896,300 $ 3,771,785 - $ 1,875,485 100-71-702 Mid Long Term Planning $ 78,750 $ 995,521 - $ 916,771 100-71-704 Annexations - - - -
100-71-705 Economic Development - - - -
72 Housing Services
100-72-711 BMR Affordable Housing Fund - $ 33,521 - $ 33,521 100-72-712 Human Services Grants $ 125,000 $ 131,671 - $ 6,671 100-72-720 Support for the Unhoused - $ 25,000- $ 25,000 73 Building
100-73-713 General Building $ 600,000 $ 1,001,873 - $ 401,873 100-73-714 Construction Plan Check $ 2,500,000 $ 2,883,126 - $ 383,126
100-73-715 Building Inspection $ 3,400,000 $ 1,560,215 - $ (1,839,785) 100-73-718 Muni-Bldg Code Enforcement - $ 74,908 - $ 74,908 74 Code Enforcement
100-74-202 Code Enforcement $ 228,000 $ 1,971,393
- $ 1,743,393
80 PW Admin
100-80-800 Public Works Admin $ 101,333 $ 1,190,552 - $ 1,089,219 81 Environmental Programs
100-81-122 Sustainability Division - $ 437,575 - $ 437,575 100-81-803 Environment Management - - - -
82 Developmental Services
100-82-804 Plan Review $ 3,163,275 $ 1,444,878 - $ (1,718,397) 100-82-806 CIP Administration - $ 1,363,062- $ 1,363,062 83 Service Center
100-83-807 Service Center Administration $ 73,108 $ 1,070,258 - $ 997,150
84 Grounds
100-84-808 McClellan Ranch Park - $ 197,705 - $ 197,705 100-84-809 Memorial Park - $ 855,361 - $ 855,361
100-84-811 BBF Ground Maintenance - $ 280,518- $ 280,518 100-84-812 School Site Maintenance $ 218,720 $ 1,497,372 - $ 1,278,652 100-84-813 Neighborhood Parks - $ 2,359,468
- $ 2,359,468
100-84-814 Sport Fields Jollyman, Creekside - $ 720,193 - $ 720,193 100-84-815 Civic Center Ground Maint $ 38,831 $ 244,649 - $ 205,818 85 Streets
100-85-818 Storm Drain Maintenance - - - -
100-85-848 Street Lighting $ 9,700 $ 1,080,111 - $ 1,070,411 Proposed Budget Book FY 2026-2027 87
100-85-850 Environmental Materials - $ 207,386
- $ 207,386
86 Trees and Right of Way
100-86-261 Trail Maintenance - $ 213,505 - $ 213,505
100-86-824 Overpasses and Medians - $ 1,807,534 - $ 1,807,534 100-86-825 Street Tree Maintenance $ 46,633 $ 2,273,164 - $ 2,226,531
100-86-826 Sheriff Work Program - $ 648,098 - $ 648,098 87 Facilities and Fleet
100-87-827 Bldg Maint City Hall $ 354,029 $ 498,799 - $ 144,770 100-87-828 Bldg Maint Library $ 1,032,351 $ 1,378,311- $ 345,960 100-87-829 Bldg Maint Service Center - $ 412,964 - $ 412,964 Fund Type/Budget Unit Description Proposed Budget Revenues Proposed Budget
Expenditures
Proposed Budget
Change in Fund
Balance/Net Position
Proposed Budget General Fund Contribution
100-87-830 Bldg Maint Quinlan Center - $ 652,516
- $ 652,516
100-87-831 Bldg Maint Senior Center - $ 369,607 - $ 369,607 100-87-832 Bldg Maint McClellan Ranch $ 1,219 $ 275,679 - $ 274,460 100-87-833 Bldg Maint Monta Vista Ct - $ 255,407
- $ 255,407
100-87-834 Bldg Maint Wilson - $ 194,773 - $ 194,773
100-87-835 Bldg Maint Portal - $ 24,586 - $ 24,586
100-87-837 Bldg Maint Creekside - $ 143,841- $ 143,841
100-87-838 Comm Hall Bldg Maint - $ 274,877 - $ 274,877 100-87-839 Teen Center Bldg Maint - - - -
100-87-840 Park Bathrooms - $ 170,644- $ 170,644
100-87-841 BBF Facilities Maintenance - $ 587,332 - $ 587,332 100-87-852 Franco Traffic Operations Center - $ 81,814
- $ 81,814
100-87-857 City Hall Annex - $ 6,010- $ 6,010
88 Transportation
100-88-265 Community Shuttle $ 4,547,892 $ 5,810,610 - $ 1,262,718 100-88-844 Traffic Engineering - $ 1,564,337
- $ 1,564,337
100-88-845 Traffic Signal Maintenance $ 10,224 $ 741,671 - $ 731,447 100-88-846 Safe Routes 2 School $ 85,000 $ 1,094,612 - $ 1,009,612 TOTAL DEPARTMENTAL $ 32,788,020 $ 100,672,857 $ - $ 67,884,837 100-90-001 No Department $ 76,939,837 $ 9,024,100 - $ (67,915,737) TOTAL NON-DEPARTMENTAL $ 76,939,837 $ 9,024,100 $ -($ 67,915,737) CHANGE IN FUND BALANCE $ - $ - $ 30,900 $ 30,900
TOTAL GENERAL FUND $ 109,727,857 $ 109,696,957 $ 30,900 $ -
SPECIAL REVENUE FUNDS
Proposed Budget Book FY 2026-2027 88
210-90-001 No Department $ 3,040
- $ 3,040-
215-90-001 No Department $ 48,132 - $ 48,132 -
230-81-802 Non Point Source $ 1,537,607 $ 1,497,486 $ 40,121 - 230-81-853 Storm Drain Fee - - - -
230-81-854 General Fund Subsidy - $ 10,183 $ (10,183)-
230-81-855 Storm Drain Maintenance - $ 521,418 $ (521,418)- 230-90-001 No Department $ 3,558
- $ 617,558 $ 614,000
260-72-707 CDBG General Admin $ 77,400 $ 114,301 $ (36,901)- 260-72-709 CDBG Capital/Housing Projects $ 283,000 $ 281,500 $ 1,500 - 260-72-710 CDBG Public Service Grants $ 58,000 $ 58,000- - 260-90-001 No Department $ 34,747 - $ 34,747 -
265-72-711 BMR Affordable Housing Fund $ 4,533,826 $ 353,974 $ 4,179,852 -
265-90-001 No Department $ 268,129 - $ 268,129 -
270-85-820 Sidewalk Curb and Gutter - $ 730,818 $ (730,818)- 270-85-821 Street Pavement Maintenance $ 3,126,820 $ 5,281,432 $ (2,154,612) -
270-85-822 Street Sign Marking - $ 902,664 $ (902,664)- 270-90-001 No Department $ 1,483,559- $ 1,483,559-
270-99-270 Bollinger Rd Corridor Design - - - -
270-99-271 Rdway Safety Improvements - HSIP - - - -
271-90-001 No Department $ 18,657 - $ 18,657 -
280-90-001 No Department $ 307,694
- $ 307,694-
281-90-001 No Department $ 1,384 $ 15,000 $ (13,616)-
TOTAL SPECIAL REVENUE FUNDS $ 11,785,553 $ 9,766,776 $ 2,632,777 $ 614,000
DEBT SERVICE FUNDS
365-90-001 No Department - - - -
365-90-500 Facility Lease - $ 2,675,100 - $ 2,675,100
TOTAL DEBT SERVICE FUNDS $ - $ 2,675,100 $ - $ 2,675,100
CAPITAL PROJECTS FUNDS
420-99-007 ADA Improvements - - - -
420-99-047 CIP Prelim Planning & Design - $ 125,000 $ (125,000)- 420-99-048 Capital Project Support - $ 50,000 $ (50,000) -
420-99-056 St Light Install - Annual Infill - - - -
420-99-063 CW Bldg Condition Assessment - $ 1,250,000 - $ 1,250,000 420-99-085 Playground EQ (Creekside&Varian) - - - -
420-99-248 10455 Torre Ave Improvements - $ 5,000,000 - $ 5,000,000 420-99-272 EVCS Expansion - Service Center - - - -
420-99-273 McClellan Rd Bridge Replacement - - - -
Proposed Budget Book FY 2026-2027 89
420-99-274 PV Systems Design & Installation - - - -
420-99-275 Vai Avenue Outfall - - - -
420-99-277 BBF Golf Pro Shop Renovation - $ 120,000 - $ 120,000 420-99-278 Sport Courts Resurfacing - $ 210,000 - $ 210,000 420-99-279 SCB/SR 85 NB Ramp Intersection $ 600,000 $ 600,000- - 420-99-280 Memorial Park Pickleball Sound - $ 150,000- $ 150,000 429-90-001 No Department - $ 6,730,000 $ (4,730,000) $ 2,000,000 TOTAL CAPITAL PROJECTS FUNDS $ 600,000 $ 14,235,000 $ (4,905,000) $ 8,730,000 Fund Type/Budget Unit Description Proposed Budget
Revenues
Proposed Budget
Expenditures
Proposed Budget
Change in Fund
Balance/Net Position
Proposed Budget General Fund
Contribution
ENTERPRISE FUNDS
520-81-801 Resources Recovery $ 1,835,085 $ 2,415,228 $ (580,143)- 520-90-001 No Department - - - -
560-63-616 BBF Golf Course $ 723,500 $ 838,454 $ (114,954)- 560-87-260 BBF Golf Maintenance - $ 64,012 $ (64,012)-
560-84-268 Golf Grounds Maintenance - $ 178,656 $ (178,656) -
560-90-001 No Department $ 5,678 - $ 235,678 $ 230,000
570-63-621 Sports Center Operation $ 1,112,500 $ 1,566,850 $ (454,350)- 570-87-836 Bldg Maint Sports Center - $ 619,910 $ (619,910) -
570-90-001 No Department $ 18,201- $ 478,201 $ 460,000
580-62-613 Youth Teen Recreation $ 1,509,140 $ 2,003,055 $ (493,915)- 580-63-620 Outdoor Recreation $ 741,000 $ 828,415 $ (87,415)- 580-90-001 No Department $ 44,496- $ 44,496-
TOTAL ENTERPRISE FUNDS $ 5,989,600 $ 8,514,580 $ (1,834,980) $ 690,000
INTERNAL SERVICE FUNDS
610-30-300 Administration $ 70,259 $ 214,251 $ (143,992)- 610-34-310 Infrastructure $ 3,316,916 $ 3,309,381 $ 7,535 -
610-35-986 GIS $ 1,373,222 $ 1,434,897 $ (61,675)-
610-90-001 No Department $ 25,433 - $ 25,433 -
620-16-418 Workers Compensation Insurance $ 470,267 $ 527,858 $ (57,591) -
620-44-418 Workers Compensation Insurance - - - -
620-90-001 No Department $ 51,713 - $ 51,713 -
630-85-849 Equipment Maintenance $ 1,417,137 $ 1,738,610 $ (321,473) -
630-90-001 No Department $ 25,042 - $ 382,042 $ 357,000 630-90-985 Fixed Assets Acquisition - $ 914,738 $ (914,738)- 641-16-419 Long Term Disability - $ 134,733 $ (134,733)- Proposed Budget Book FY 2026-2027 90
641-16-420 Compensated Absence - $ 727,212 $ 324,788 $ 1,052,000 641-44-419 Long Term Disability - - - -
641-44-420 Compensated Absence - - - -
641-90-001 No Department - - - -
642-16-414 HR Retiree Benefits - $ 1,638,052 $ (21,052) $ 1,617,000 642-44-414 HR Retiree Benefits - - - -
TOTAL INTERNAL SERVICE FUNDS $ 6,749,989 $ 10,639,732 $ (863,743) $ 3,026,000 TOTALALL FUNDS $ 134,852,999 $ 155,528,145 $ (4,940,046) $ 15,735,100 Proposed Budget Book FY 2026-2027 91
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 2026-27, General Fund revenues are estimated at $109.7 million, a $12.5 million, or 12.9% increase from the previous year's Adopted Budget. General Fund expenditures are estimated to be $109.7 million, a $10.5 million or 10.6%, increase from the previous year's Adopted Budget.
General Fund Summary
Proposed Budget Book FY 2026-2027 92
FY 2026-27 General Fund revenue sources have been carefully evaluated by considering collection history, seasonal patterns, 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 2026-27 revenues are estimated at $109.7 million, a $12.5 million, or 12.9% increase from the FY 2025-26 Adopted Budget. This increase is primarily due to realigning Sales Taxes revenues to the new normal and increase to Licenses and Permits, Use of Money and Property, and Intergovernmental. These revenue categories will be discussed in greater detail in the following sections.
GENERAL FUND REVENUE SUMMARY
2023-24 2024-25 2025-26 2026-27 Percent
REVENUES Actuals Actuals Adopted Proposed Change
Sales Tax
30,961,166 17,394,996 11,983,958 16,903,174
41.0%
Property Tax
33,036,853 34,425,468 35,413,310 35,939,222
1.5%
Transient Occupancy
6,486,798 8,305,933 7,500,000 7,676,155
2.3%
Utility Tax
3,935,917 4,214,212 4,206,907 4,102,431
-2.5%
Franchise Fees
4,313,669 4,383,827 4,394,563 4,475,281
1.8%
Other Taxes
1,621,328 2,113,162 1,736,718 1,763,401
1.5%
Licenses & Permits
4,412,057 5,755,842 4,261,859 6,528,411
53.2%
Use of Money & Property
9,098,441 14,804,318 6,538,880 8,476,479
29.6%
Intergovernmental
1,404,322 14,574,153 3,569,332 5,231,221
46.6%
Charges for Services
12,181,459 394,405 15,162,032 15,616,424
3.0%
Fines & Forfeitures
416,402 2,962,429 410,760 413,760
0.7%
Miscellaneous
2,199,861 2,056,694 1,668,815 2,219,898
33.0%
Transfers in
111,000 348,333 15,000 15,000
0.0%
Other financing sources 127,037 3,619,142 367,000 367,000 0.0% General Fund Revenues
Proposed Budget Book FY 2026-2027 93
TOTAL REVENUES $ 110,306,310 $ 115,352,915 $ 97,229,134 $ 109,727,857 12.9% The majority of Cupertino's General Fund operating revenues are generated by property taxes (33%), charges for services (16%), sales taxes (15%), and transient occupancy taxes (7%). The chart below illustrates the sources of General Fund revenue by category.
The FY 2026-27 General Fund revenue estimates are discussed by category below.
Sales Tax
Sales and Use Tax, commonly known as the "sales tax," consists of two components: an excise tax levied on retailers for selling tangible personal property, and an excise tax applied to purchases from out-of-state vendors that are not required to collect tax on their sales. The revenue generated from sales and use taxes collected within Cupertino's boundaries is allocated by the State to various agencies, with the City receiving one percent, as depicted in the chart below.
Agency Sales Tax
Distribution
State 6.000%
VTA 1.625%
City of
Cupertino 1.000%
County
General
Purpose
0.750%
County
Transportation 0.250%
CalTrain 0.125%
Total: 9.750%
The City's sales tax revenue comes from five primary economic categories: business-to-business (including electronic equipment and software manufacturers and distributors), state and county pools, restaurants and Proposed Budget Book FY 2026-2027 94
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 remitted 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 onetime 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 settlement 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. Since the completion of the audit and subsequent settlement, the City is beginning to see the dust settle in terms of its ongoing sales tax revenue base. The proposed budget reflects an increase to $16.9 million in sales tax revenues, largely driven by current year actuals and projected revenue generation as provided by the City’s contracted industry experts. At this time, most of these projections are expected to remain relatively stable moving forward.
SALES & USE TAX
FY 24-25 Actual 17,394,996
FY 25-26 Adopted 11,983,958
FY 25-26 Estimate 11,983,958
FY 26-27 Proposed 16,903,174
% of General Fund 15.40%
% Change from FY 25-26 Adopted 41.05%
Proposed Budget Book FY 2026-2027 95
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 shift local tax revenues from cities, counties, and special districts to a State control ERAF, absorbs the shift-back of the TEA .
Proposed Budget Book FY 2026-2027 96
PROPERTY TAX
FY 24-25 Actual 34,425,468
FY 25-26 Adopted 35,413,310
FY 25-26 Estimate 35,413,310
FY 26-27 Proposed 35,939,222
% of General Fund 32.75%
% Change from FY 25-26 Adopted 1.49%
The citywide growth in value in the FY 2025-26 assessment roll was $1.2 billion, an increase of 3.6%. This is in comparison to the positive increase in 2024-25 tax year of $1.4 billion for an increase of 4.4%. The bulk of the increase was due to increases in residential properties by $1.4 billion, or 6.4%. This category makes up 64.8% of the net taxable value. Unsecured property tax decreased by $229.3 million, or 21.2%. This category makes up
2.4% of the net taxable value. Lastly, commercial property values increased by $49.8 million, or 0.5%. This category makes up 26.9% of the net taxable value.
The FY 2026-27 Property Tax revenue estimate is based on 2025-26 values and estimated changes according to HdL, the City's property tax consultant. HdL also provides insight into real estate trends for calendar year 2025, the year that influences the 2026-27 property values enrolled. According to HdL, while it is not universal, there are cities in each county where the sale prices have grown more than the countywide average, but in general, the growth in median sale prices in 2025 has under-performed the growth experienced in 2024. Homes are still selling for more than their currently taxed value but the differential between the assessor’s enrolled value for taxation in the prior year and the sale price paid in the 2025 calendar year is not as high as seen in some years in the previous 4-year period.
Transient Occupancy Taxes
Transient occupancy taxes (TOT) are levied on hotels and short-term room rentals located in the City at 12% of room revenues. In November 2011, 83% of voters approved increasing the rate from 10% to 12%. This rate increase contributed to the upward trend shown in the TOT Historical Trend graph.
Proposed Budget Book FY 2026-2027 97
$7.7 million is anticipated in TOT revenues during FY 2026-27, a 2.4% increase from the FY 2025-26 Adopted Budget. According to HdL, business travel has not returned compared to pre-pandemic levels. While Average Daily Rates are increasing, Occupancy Rates remain unpredictable. Staff will continue to monitor this revenue source and bring forward adjustments and recommendations as necessary.
TRANSIENT OCCUPANCY TAX
FY 24-25 Actual 8,305,933
FY 25-26 Adopted 7,500,000
FY 25-26 Estimate 7,500,000
FY 26-27 Proposed 7,676,155
% of General Fund 7.00%
% Change from FY 25-26 Adopted 2.35%
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.
Utility User Tax Comparison
Gas /
Electric Cable Water Telecom
Sunnyvale 2.0% - - 2.0%
Cupertino 2.4% - - 2.4%
Mountain
View 3.0% - - 3.0%
Proposed Budget Book FY 2026-2027 98
Los Altos 3.5% 3.2% 3.5% 3.2%
Palo Alto 5.0% - 5.0% 4.8%
Gilroy 5.0% 5.0% - 5.0%
San Jose 5.0% - 5.0% 4.5%
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 2026-27, budgeted revenues are in line with FY 2025-26 Adopted Budget amounts. This revenue source will be monitored closely as the fiscal year progresses.
UTILITY TAX
FY 24-25 Actual 4,214,212
FY 25-26 Adopted 4,206,907
FY 25-26 Estimate 4,206,907
FY 26-27 Proposed 4,102,431
% of General Fund 3.74%
% Change from FY 25-26 Adopted -2.48%
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 Proposed Budget Book FY 2026-2027 99
the graph below, these revenues are relatively steady and not sensitive to economic fluctuations, aside from a spike in revenue in FY 2024-25. This revenue spike was related to a combination of a franchise fee collection interval correction plus the demolition of the Oaks shopping center, which increased the usage of Recology debris boxes.
In FY 2026-27, budgeted revenues are in line with FY 2025-26 Adopted Budget amounts. This revenue source will be monitored closely as the fiscal year progresses.
FRANCHISE FEES
FY 24-25 Actual 4,383,827
FY 25-26 Adopted 4,394,563
FY 25-26 Estimate 4,394,563
FY 26-27 Proposed 4,475,281
% of General Fund 4.08%
% Change from FY 25-26 Adopted 1.84%
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.
Proposed Budget Book FY 2026-2027 100
Revenues in this category have returned to historic levels after Apple Park and Main Street developments have completed. In FY 2026-27, these revenues are expected to increase slightly from the prior year adopted budget. The projected increase is based on estimated increases in property transfer taxes and other taxes.
According to HdL, for FY 2026-27, the projected increase from known 2025 transfers is used to estimate value growth.
OTHER TAXES
FY 24-25 Actual 2,113,162
FY 25-26 Adopted 1,736,718
FY 25-26 Estimate 1,736,718
FY 26-27 Proposed 1,763,401
% of General Fund 1.61%
% Change from FY 25-26 Adopted 1.54%
Charges for Services
Charges for Services account for charges to users of City services funded by the General Fund as well as internal City-wide overhead. The City attempts 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.
Proposed Budget Book FY 2026-2027 101
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. After 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.
CHARGES FOR SERVICES
FY 24-25 Actual 14,574,153
FY 25-26 Adopted 15,162,032
FY 25-26 Estimate 17,977,112
FY 26-27 Proposed 15,616,424
% of General Fund 14.23%
% Change from FY 25-26 Adopted 3.00%
FY 2026-27 revenues are projected to be 3% higher than the prior year adopted budget. This projected increase is primarily due to the Rise and its scheduled commencement in FY 2026-27. Revenues are carried forward until project completion.
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.
Proposed Budget Book FY 2026-2027 102
Apple Park and large residential projects (Rosebowl, Biltmore expansion, Main Street) generated significant permitting revenues in FY 2013-14 (not shown in the trend chart above). Since then, activity has slowed until FY 2018-19, when revenues came in 48.8% higher. Although this revenue source is relatively consistent from year to year, fluctuations may occur depending on the timing of projects being completed. The $34 million estimated amount in FY 2025-26 is due to plan check fee revenues anticipated to be recognized for The Rise. In FY 2026- 27, revenues are budgeted at $6.5 million, a 53.2% increase from the prior year adopted budget due to projected revenue based on FY 2024-25 actuals and increased fees in FY 2026-27.
LICENSES AND PERMITS
FY 24-25 Actual 5,755,842
FY 25-26 Adopted 4,261,859
FY 25-26 Estimate 34,009,139
FY 26-27 Proposed 6,528,411
% of General Fund 5.95%
% Change from FY 25-26 Adopted 53.18%
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, 2026, the City's portfolio included $74 million invested with the Local Agency Investment Fund (LAIF) and a total market value of $207.8 million with Chandler Asset Management. As of March 31, 2026, the City also had $25.9 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 after an investment is purchased, the market value of the investment increases. In contrast, when interest rates increase Proposed Budget Book FY 2026-2027 103
after an investment is purchased, the market value of the investment decreases. At the time of purchase, the City intends to hold all investments until maturity, meaning that changes in market value will not impact the City's investment principal. If the market value decreases, the City will incur an unrealized loss. However, the loss will only be realized if the City sells its investments before their maturity.
Investment earnings are a function of the amount of cash available for investment, current interest rates, and the composition of investments. The City's investment objectives, in order of priority, are:
Safety to ensure the preservation of capital
Sufficient liquidity for cash needs
A market rate of return consistent with the investment program In FY 2026-27, revenues in this category have increased 29.6% 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.
USE OF MONEY AND PROPERTY
FY 24-25 Actual 14,804,318
FY 25-26 Adopted 6,538,880
FY 25-26 Estimate 6,538,880
FY 26-27 Proposed 8,476,479
% of General Fund 7.73%
% Change from FY 25-26 Adopted 29.63%
Proposed Budget Book FY 2026-2027 104
Proposed Budget Book FY 2026-2027 105
The estimates for FY 2026-27 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 2026-27.
As shown in the chart on the next page, FY 2026-27 expenditures are estimated at 109.7 million, which represents a $10.5 million, or 10.6%, 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.
GENERAL FUND EXPENDITURE SUMMARY
2023-24 2024-25 2025-26 2026-27 Percent
EXPENDITURES Actual Actual Adopted Proposed Change
Employee Compensation 21,367,731 21,017,542 24,200,418 26,098,310 7.8% Employee Benefits 9,503,988 18,880,247 10,643,927 11,206,493 5.3% Total Personnel Costs 30,871,719 39,897,790 34,844,345 37,304,803 7.1% Non-Personnel Costs
Materials 5,215,228 5,847,731 6,174,481 6,801,762 10.2% Contract Services 25,655,721 27,373,356 31,499,502 41,772,223 32.6% Cost Allocation 10,257,656 10,638,580 11,993,327 12,168,069 1.5% Capital Outlay & Special Projects 3,683,913 1,864,434 2,968,433 753,000 -74.6% Contingencies 5,732 20,544 50,000 50,000 0.0%
Other Uses 482,077 769,409 1,065,000 1,842,000 73.0%
Total Non-Personnel 45,300,327 46,514,054 53,750,743 63,387,054 17.9% Transfers 6,595,284 13,199,130 10,594,653 9,005,100 -15.0%
TOTAL EXPENDITURES
$ 82,767,330 $ 99,610,975 $ 99,189,741 $ 109,696,957 10.6% The largest General Fund operating expenditure categories include Employee Compensation and Benefits (34.0%), Contract Services (38.1% ), Cost Allocation (11.2%), Materials (6.2%), and Transfers (8.2%) as illustrated in the FY 2026-27 General Fund Expenditures by Category chart.
General Fund Expenditures
Proposed Budget Book FY 2026-2027 106
Personnel Costs
In FY 2026-27, personnel costs are expected to reach $37.3 million, accounting for 34.0% of the General Fund expenditures. These costs include salaries and compensation for benefited and part-time staff (69%), retirement benefits (15%), and other fringe benefits (14%), 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 2026-27.
The FY 2026-27 Adopted Budget includes funding for a total of 211 positions, representing no increases of positions from the FY 2025-26 Adopted Budget.
Non-Personnel
In FY 2026-27, non-personnel costs make up 66% of the total at $72.4 million. Contract services represent the largest component of expenditures at 38.1%, primarily driven by the significant proposed $7.5 million increase to the City’s law enforcement services contract with the Santa Clara County Sheriff's Office, ongoing negotiations have since reduced the proposed increase by approximately $1.0 million annually, bringing the proposed contract cost to $25.5 million as of April 13, 2026. Other increases include Cost Allocation at 11.2% or approximately $175, 000, and Materials at 6.2% or $627, 281.
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.
Proposed Budget Book FY 2026-2027 107
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 consistently underspent in this category. For FY 2025-26, program contingencies have been consolidated into materials budgets, leaving only the City Manager Contingency as a separate expense category. Departments may use program contingency funds at their discretion, while City Manager Contingency use requires approval and quarterly reporting to the City Council for transparency.
Proposed Budget Book FY 2026-2027 108
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.
Receiving Fund Description
FY 2025-26 Adopted Budget FY 2026-27 Proposed Budget
Environmental Management Fund Environmental Management $ 317,000 $ 614,000 Community Development Block Grant (CDBG) Community Development Block Grant $ 250,000 Capital Reserve Capital Improvement Projects $ 2,000,000 $ 2,000,000 Transportation Fund Sidewalk, Curb, and Gutter Maintenance $ 1,500,000 Debt Service Fund Annual Debt Payment $ 2,676,600 $ 2,675,100 Blackberry Farm Fund Blackberry Farm Golf - $ 230,000
Sports Center Fund Sports Center $ 1,235,000 $ 460,000
Innovation & Technology Fund IT Infrastructure - -
Vehicle/Equip Replacement Vehicle/Equip Replacement $ 357,000 Compensated Absences/LTD Fund Compensated Absences $ 670,000 $ 1,052,000 Retiree Medical Fund Retiree Medical $ 1,946,053 $ 1,617,000 TOTAL
$ 10,594,653.00 $ 9,005,100.00
General Fund Transfers
Proposed Budget Book FY 2026-2027 109
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds are made up of the following:
Nonspendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, prepaid items, property held for resale, and long-term notes receivable.
Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.
Committed 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 lifted 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 committed. 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.
General Fund Classification of Fund Balance
General Fund Fund Balance
Proposed Budget Book FY 2026-2027 110
Classification 2021-22 Actual 2023-24 Actual 2024-25 Actual 2025-26 Adopted Budget 2025-26 Year End Projected 2026-27 Proposed Budget Nonspendable
Loans Receivable 439,199 428,431 1,012,168 435,000 1,012,168 1,012,168 Advance to Other Funds 3,616,757 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Inventories/Prepaid Items - 21,383 25,267 21,383 25,267 25,267 Total Nonspendable 4,055,956 3,449,814 4,037,435 3,456,383 4,037,435 4,037,435 Restricted
CASp Certification and Training 23,621 7,628 9,753 7,628 9,753 9,753 Section 115 Pension Trust 17,240,051 21,663,664 24,320,860 21,663,664 21,663,664 24,320,860 Public Access Television 1,492,810 1,639,443 1,471,890 429,443 261,890 261,890 Public Art In-Lieu - - - - - -
Total Restricted 18,756,482 23,310,735 25,802,503 22,100,735 21,935,307 24,592,503 Committed
Sales Tax Repayment Reserve - 74,500,000 - - - -
For Future Use Reserve - - 64,500,000 64,500,000 62,000,000 62,000,000 Economic Uncertainty Reserve 24,000,000 24,000,000 24,000,000 22,543,315 24,000,000 26,517,894 Capital Projects Reserve 10,000,000 10,000,000 - - - -
Sustainability Reserve 127,891 127,891 127,891 127,891 127,891 127,891 Total Committed 34,127,891 108,627,891 88,627,891 87,171,206 86,127,891 88,645,785 Assigned
Reserve for Encumbrances* 5,041,681 4,741,474 7,287,794 - - - Total Assigned 5,041,681 4,741,474 7,287,794 - - -
Total Unassigned 48,696,821 25,965,405 56,081,637 43,275,717 65,879,182 60,734,992 TOTAL FUND BALANCE $ 110,678,831 $ 166,095,319 $ 181,837,260 $ 156,004,041 $ 177,979,815 $ 178,010,715 *Beginning with the FY 2025–26 Budget, the City will no longer present projected or proposed fund balance amounts. Instead, prior year actuals will be updated to reflect recorded activity. This adjustment is being made to align with the City's practice of budgeting under the assumption that all appropriations will be fully expended within the fiscal year.
Proposed Budget Book FY 2026-2027 111
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 putting a cap on the total proceeds of taxes that may be appropriated each year.
Proposition 111 and Senate Bill 88, approved by California voters in June of 1990, offered cities more flexibility in choosing inflation and population factors to calculate the limit. The following chart and table show the appropriations limit and actual expenditures subject to the appropriations limit. This will be updated as part of the final budget.
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.
Fiscal
Year
Appropriations
Limit
Change in
Appropriations
Limit
Percentage
Change in
Appropriations
Limit
2015-16 $86,100,308 $4,094,677 5.0%
2016-17 $91,867,014 $5,766,706 6.7%
2017-18 $96,028,488 $4,161,474 4.5%
2018-19 $100,538,305 $4,509,818 4.7%
2019-20 $104,753,580 $4,215,275 4.2%
2020-21 $109,062,934 $4,309,354 4.1%
Gann Appropriations Limit
Proposed Budget Book FY 2026-2027 112
2021-22 $114,666,491 $5,603,558 5.1%
2022-23 $122,756,522 $8,090,031 7.1%
2023-24 $127,886,354 $5,129,872 4.2%
2024-25 $132,542,385 $4,655,991 3.6%
2025-26 $141,134,546 $8,592,161 6.5%
Proposition 111 changed the way the limit is calculated and allowed a City to increase its limit annually in two ways:
By the percent change in per capita personal income in California or the percent change in the assessment roll the preceding year due to the addition of local non-residential new construction; or By the percent change in county or city population.
The City used the following factors from the California Department of Finance.
Price Factor
(A) Percent Change in California Per Capita Personal Income: 6.44% Population Factor
(B) Percent Change in County Population: 0.04%
(C) Percent Change in City Population: -0.09%
The City multiplied the FY 2024-25 appropriations limit by Price Factor (A) and Population Factor (B) to calculate the FY 2025-26 appropriations limit, as shown below:
FY 2024-25 Appropriations Limit $132,542,385
Price Factor (A) 1.0644
Population Factor (B) 1.0004
FY 2025-26 Appropriations Limit $141,134,546
The City's FY 2025-26 appropriations limit is $141.1 million, an increase of $8.6 million, or 6.5% from the prior year.
Proposed Budget Book FY 2026-2027 113
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. This will be updated as part of the final budget.
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
Legal Debt Margin
Proposed Budget Book FY 2026-2027 114
Budget Units
Council and Commissions Budget Units
Expenses
City Council 736,675
Commissions 545,801
EXPENSES TOTAL 1,282,476
Budget at a Glance
Total Revenues 107,149.00
Total Expenditures 1,282,476.00
Total FTE 7.24
Organization
Kitty Moore, Mayor
Liang Chao, Vice Mayor
J.R. Fruen, Council Member
Sheila Mohan, Council Member
Ray Wang, Council Member
Council and Commissions
Department Overview
PROPOSED
FY2027
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 115
Proposed Budget
It is recommended that City Council approve a budget of $1,282,476 for the Council and Commissions department. This amount represents an increase of $158,243 (14.0%) from the FY 2025-26 Adopted Budget.
This increase is due primarily to compensation and benefits which have increased due to a reallocation of staffing to better reflect actual staff time spent in this program. Similar to last year, 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.
Proposed Expenditures by Division
Data Updated: May 05, 2026, 12:06 AM View Report
Total Proposed Budget (FY2027)
$1,282,476
CCiittyy CCoouunncciill::
$$773366,,667755 ((5577%%))
City Council:
$736,675 (57%)
CCoommmmiissssiioonnss::
$$554455,,880011 ((4433%%))
Commissions:
$545,801 (43%)
City Council
Commissions
Department Expenditure History
Proposed Budget Book FY 2026-2027 116
Data Updated: May 05, 2026, 12:06 AM View Report
Expenses
Actual - FY2024 Actual - FY2025 Adopted - FY2026 Proposed - FY2027 $0
$250K
$500K
$750K
$1,000K
$1,250K
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.
Council and Commissions: Department Overview
Expenses
Expenses
Employee Compensation $291,430 $284,123 $320,191 414,525 Employee Benefits $189,706 $347,174 $227,867 261,364
Materials and Supplies $103,431 $109,618 $85,321 94,994 Contract Services $95,670 $95,057 $238,776 233,140
Cost Allocation $273,620 $248,971 $252,078 278,453
EXPENSES TOTAL $953,857 $1,084,943 $1,124,233 1,282,476 EXPENSES TOTAL $953,857 $1,084,943 $1,124,233 1,282,476 Revenues
Charges for Services $827,983 $104,305 $106,119 107,149 REVENUES TOTAL $827,983 $104,305 $106,119 107,149
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 FY2024 FY2025 FY2026 FY2027
allocation
EXEC ASST TO THE CITY COUNCIL 0.5 0.5 0.5 0.5
SENIOR PLANNER 0.1 0.1 0.1 0.1
ENV. PROGRAMS SPECIALIST 0 0.05 0.05 0.05
DIRECTOR OF PARKS REC 0 0 0 0
ASSIST TO THE CITY MNGR 0 0.05 0 0
MANAGEMENT ANALYST 0.2 0.1 0.05 0.05
FINANCE MANAGER 0.05 0.05 0.05 0.05
PLANNING MANAGER 0.1 0 0 0.3
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 117
position_title FY2024 FY2025 FY2026 FY2027
PUBLIC INFORMATION OFFICER 0.15 0 0 0
ASSISTANT HOUSING COORDINATOR 0 0 0.15 0.05
ADMINISTRATIVE ASSISTANT 0.4 0.4 0.4 0.4
ENVIRONMENTAL PROGRAMS ASSISTANT 0 0 0 0
ASSISTANT ENGINEER 0 0.1 0 0
SUSTAINABILITY MANAGER 0.05 0 0 0
COMMS AND MARKETING COORDINATOR 0 0.15 0.15 0.1
SENIOR MANAGEMENT ANALYST 0 0 0.05 0.05
COMMUNITY OUTREACH SPECIALIST 0.1 0.1 0.1 0.05
ASSIST DIR OF COMMITY DEV 0 0 0 0.2
TRANSPORTATION MANAGER 0.1 0 0 0
COUNCIL MEMBER 5 5 5 5
ASST DIR RECREATION COMM SVCS 0 0 0 0
ASST DIRECTOR PARKS AND RECREATION 0 0 0 0.05
ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0.05 0
SR OFFICE ASSISTANT 0.2 0.2 0.1 0
DIRECTOR OF COMM DEVELOPMENT 0.06 0.06 0.06 0.02
SENIOR HOUSING COORDINATOR 0 0.2 0.15 0.1
EMERGENCY SERVICES COORDINATOR 0.05 0 0 0.05
CHIEF TECHNOLOGY OFFICER 0.02 0.02 0.02 0.02
RECREATION MANAGER 0.15 0.15 0.15 0.1
ALLOCATION 7.23 7.23 7.13 7.24
Proposed Budget Book FY 2026-2027 118
Programs
City Council
Community Funding
Historical Society
Sister Cities
Division 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.
The Community Funding program provides funding for various community activities and community-based organizations throughout the fiscal year.
The City has executed a Grant Funding and License Agreement with the Cupertino Historical Society to utilize space at the Quinlan Community Center. The Cupertino Historical Society manages and operates the Historical Museum.
The Sister Cities budget includes funding for the Sister Cities program. Cupertino currently has four active sister cities registered with Sister Cities International; Toyokawa, Japan; Hsinchu, Taiwan; Copertino, Italy; and Bhubaneswar, India.
Budget at a Glance
Total Revenues 107,149.00
Total Expenditures 736,675.00
Total FTE 5.65
Service Objectives
City Council
The City Council objectives are carried out by City staff under the sole direction of the City Manager.
Community Funding
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.
Historical Society
Council and Commissions
City Council: Division Summary
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 119
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 Crafts; Special Exhibits at various locations around Cupertino (Cupertino Library, Baer Blacksmith Shop, Other Local Organizations); Traveling Trunk; Quarterly Speaker Series; Community Action Committee; Oral History Events; History Happy Hours; Volunteer and Internship opportunities for anyone ages 16+; Reading Groups
Sister Cities
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
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $140,568 $134,624 $142,167 131,536 Employee Benefits $121,181 $204,273 $151,474 153,726
Materials and Supplies $93,469 $94,930 $71,562 74,546
Contract Services $95,670 $85,057 $236,140 233,140
Cost Allocation $20,787 $115,661 $121,996 143,727
EXPENSES TOTAL $471,675 $634,545 $723,339 736,675
EXPENSES TOTAL $471,675 $634,545 $723,339 736,675
Revenues
Charges for Services $827,983 $104,305 $106,119 107,149 REVENUES TOTAL $827,983 $104,305 $106,119 107,149
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 FY2024 FY2025 FY2026 FY2027
allocation
EXEC ASST TO THE CITY COUNCIL 0.5 0.5 0.5 0.5
PUBLIC INFORMATION OFFICER 0.15 0 0 0
COMMS AND MARKETING COORDINATOR 0 0.15 0.15 0.1
COMMUNITY OUTREACH SPECIALIST 0.1 0.1 0.1 0.05
COUNCIL MEMBER 5 5 5 5
SR OFFICE ASSISTANT 0.2 0.2 0.1 0
ALLOCATION 5.95 5.95 5.85 5.65
Staffing has been reallocated to better reflect actual time spent in division.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 120
Proposed Budget Book FY 2026-2027 121
Budget Unit 100-10-100 General Fund - City Council - City Council Budget at a Glance
Total Revenues 107,149.00
Total Expenditures 594,106.00
Total FTE 5.50
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. Similar to last year, 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 $594,106 for the City Council program. This amount represents an increase of $305 (0.00%) from the FY 2025-26 Adopted Budget. This budget is relatively unchanged from the previous fiscal year.
Revenue 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.
Expenses
Expenses
Employee Compensation $133,482 $127,944 $135,616 115,916 Employee Benefits $116,879 $197,873 $147,777 145,475
Materials and Supplies $85,289 $87,728 $62,055 65,907
Contract Services $13,848 $1,050 $140,640 140,640
Cost Allocation – $95,807 $107,713 126,168
EXPENSES TOTAL $349,498 $510,402 $593,801 594,106
EXPENSES TOTAL $349,498 $510,402 $593,801 594,106
Council and Commissions
City Council
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 122
Revenues
Charges for Services $827,983 $104,305 $106,119 107,149 REVENUES TOTAL $827,983 $104,305 $106,119 107,149
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 FY2024 FY2025 FY2026 FY2027
allocation
EXEC ASST TO THE CITY COUNCIL 0.5 0.5 0.5 0.5
PUBLIC INFORMATION OFFICER 0.1 0 0 0
COMMS AND MARKETING COORDINATOR 0 0.1 0.1 0
COMMUNITY OUTREACH SPECIALIST 0.1 0.1 0.1 0
COUNCIL MEMBER 5 5 5 5
SR OFFICE ASSISTANT 0.15 0.2 0.1 0
ALLOCATION 5.85 5.9 5.8 5.5
Staff time is being reallocated to better reflect actual time spent in this program.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 123
Budget Unit 100-10-101 General Fund - City Council - Community Funding Budget at a Glance
Total Revenues –
Total Expenditures 33,087.00
Total 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
Is is recommended that City Council approve a budget of $33,087 for the Community Funding program. This represents a decrease of $2,999 (-8.3%) from the FY 2025-26 Adopted Budget. This budget is relatively unchanged from the prior fiscal year Adopted Budget.
The Community Funding Grant application process opened on January 1, 2026, and closed on February 1, 2026. Twenty two applications were received for the FY 2026-2027 Community Funding Grant Program cycle and were brought to the Parks and Recreation Commission for review on March 5, 2026. The Commission evaluated and scored the applications on April 2, 2026, and a recommendation was provided regarding funding to City Council for final approval.
Non-Profit
Organization
FY 2025-26
Funding
FY 2025-26
Program/Project/Event
FY 2026-
27 Funding
FY 2026-27
Program/Project/Event
Active Circle $2,000 All Inclusive Family
Picnic
$2,000 Neuro-Inclusive Picnic
with Purpose
AINAK $4,000 Eyecare and
Eyeglasses
$1,550 Eyecare and
Eyeglasses
Asian American
Parents
Association
$3,000 AAPI Multicultural
Festival
Did Not Apply
Council and Commissions
Community Funding
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 124
Colorful Minds Did Not Apply $1,500 Colorful Minds
Cupertino
Symphonic
Band
$3,000 Band Equipment $2,000 Music, Band
Equipment, Rental
Venue
ElderAid $5,000 Background
Verification Integration
and Support
Did Not Apply
Fremont Union
High Schools
Did Not Apply $8,500 Environmental
Education Classroom
for the Fremont Union
High Schools District
iTalented $900 iSpark Did Not Apply
Mind4Youth Did Not Apply $2,500 HeartCare
No Time to
Waste
$5,000 5/1000: Feed the Need $4,000 GRoW: Grocery
Rescue Weekly
Remember the
ToothFairy
$1,000 Dental Treatment
program
$2,000 Dental Education
Outreach Program
Rotary Club of
Cupertino
$1,600 Thanksgiving Meal
Sharing Program
$3,000 Pollinator Garden and
McClellan Ranch Park
Special
Olympics
Northern
California
$5,000 2025 Cupertino
Bowling Team
Program
Did Not Apply
Teens Talk Did Not Apply $450 Cuper-Teens Got
Laughs!
Via
Rehabilitation
Services
$1,000 STEAM & Outdoor
Education
Did Not Apply
West Valley
Community
Services
$2,000 Gift of Hope 2025 $5,000 Gift of Hope 2026
$ 33,500 $ 32,500
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Contract Services $28,927 $32,500 $35,500 32,500
Cost Allocation $2,267 $608 $586 587
EXPENSES TOTAL $31,194 $33,108 $36,086 33,087
EXPENSES TOTAL $31,194 $33,108 $36,086 33,087
Revenues
– – – – –
REVENUES TOTAL – – – –
Staffing
There is no staffing associated with this program.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 125
Proposed Budget Book FY 2026-2027 126
Budget Unit 100-10-104 General Fund - City Council - Historical Society Budget at a Glance
Total Revenues –
Total Expenditures 40,000.00
Total 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 Crafts; Special Exhibits at various locations around Cupertino (Cupertino Library, Baer Blacksmith Shop, Other Local Organizations); Traveling Trunk; Quarterly Speaker Series; Community Action Committee; 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.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Council and Commissions
Historical Society
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 127
Expenses $40,000 $40,000 $40,000 40,000
EXPENSES TOTAL $40,000 $40,000 $40,000 40,000
Revenues
– – – – –
REVENUES TOTAL – – – –
Staffing
There is no staffing associated with this program.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 128
Budget Unit 100-10-110 General Fund - City Council - Sister Cities Budget at a Glance
Total Revenues –
Total Expenditures 69,482.00
Total FTE 0.15
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 six Friendship Cities: New Taipei City, Taiwan; Taichung, Taiwan; Tongxiang, People's Republic of China; Xianning, People's Republic of China; Xuhui District, Shanghai, People's Republic of China; and Danzhou, Hainan Province, 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
Adopted Budget
It is recommended that City Council approve a budget of $69,482 for the Sister Cities program. This amount represents an increase of $16,030 (30%) from the FY 2025-26 Adopted Budget. This increase is due primarily to a reallocation of staff time to better reflect actual time spent in this program. This budget is aligned with the Sister City Policy.
Revenue 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.
Expenses
Expenses $50,983 $51,035 $53,452 69,482
EXPENSES TOTAL $50,983 $51,035 $53,452 69,482
Revenues
– – – – –
REVENUES TOTAL – – – –
Council and Commissions
Sister Cities
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 129
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 FY2024 FY2025 FY2026 FY2027
allocation
COMMUNITY OUTREACH SPECIALIST 0 0 0 0.05
SR OFFICE ASSISTANT 0.05 0 0 0
PUBLIC INFORMATION OFFICER 0.05 0 0 0
COMMS AND MARKETING COORDINATOR 0 0.05 0.05 0.1
ALLOCATION 0.1 0.05 0.05 0.15
Staffing was reallocated to better reflect actual time spent in this program.
Proposed Budget Book FY 2026-2027 130
Budget Unit - Economic Development Committee
Program Overview
The Economic Development Committee consists of nine (9) members appointed by the City Council to overlapping four-year terms, comprised of five industry sector representatives, one City Council member, one Sustainability Commission representative, one Technology, Information, and Communications Commission representative, and one Planning Commission representative. The Committee works to market the City in a positive light to attract and retain businesses, foster public and private partnerships through new and existing business and community relationships, collaborate with local businesses to identify and eliminate any barriers to retention or growth, and advise City Council on economic development goals that maintain the quality of life in Cupertino.
Proposed Budget
There is no budget associated with this program.
There is no staffing associated with this program.
Council and Commissions
Economic Development Committee
Proposed Budget Book FY 2026-2027 131
Programs
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
Economic Development Committee
Division Overview
The City of Cupertino has 12 Commissions and Committees composed of community volunteers appointed by the City Council. These volunteers serve in an advisory capacity, to advise the City Council on topics related to the designated scope of each commission/committee. The primary purpose of these bodies is to consider public input and to assist the City Council in the formation of policy, having been created for the purpose of advising.
Budget at a Glance
Total Revenues –
Total Expenditures 545,801.00
Total FTE 1.59
Service Objectives
Arts & Culture Commission — Fosters, encourages and assists in the realization, preservation and advancement of arts and culture for the benefit of the citizens of Cupertino.
Audit Committee — Assists the City Council in oversight of the City’s financial reporting, auditing, and internal controls.
Bicycle & Pedestrian Commission — Reviews, monitors and makes recommendations regarding City transportation matters including but not limited to bicycle and pedestrian traffic, parking, education and recreation within Cupertino
Economic Development Committee — Advises on strategies and policies to promote economic vitality and business development.
Housing Commission — Advises on housing policy, housing programs, and issues related to affordability, availability, and compliance with housing laws.
Council and Commissions
Commissions: Division Summary
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 132
Library Commission — Advises the Council on the adequacy of library service within the community and such other matters relating to library service as specified by the City Council; and serves as liaison between the City and the Santa Clara County library system Parks & Recreation Commission — Advises the City Council on municipal activities in relation to parks and recreation, including park site acquisition and development, recreation program policy, and expansion of the park program as development occurs.
Planning Commission — Advises Council on land use matters such as specific and general plans, zonings and subdivisions. The commission reviews other matters as specified by City ordinances or Title VII of the Government Code of California.
Public Safety Commission — Advises Council on all areas relating to public safety, traffic, and police, fire and other matters relating to the foregoing.
Sustainability Commission — Advises Council and provides expertise and guidance on major policy and programmatic areas related to the environmental, economic and societal goals noted within Cupertino’s Climate Action Plan (CAP) 2.0 and General Plan (GP) Environmental Resources/Sustainability Element.
Technology, Information & Communications Commission (TICC) — Advises Council on all matters relating to telecommunications within the City of Cupertino, including evaluating compliance with any franchise or other agreement between the City and a telecommunications provider and conducting periodic reviews of providers, facilities, and products.
Teen Commission — Advises the City Council on issues affecting youth and teen engagement in the community.
Revenue 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.
Expenses
Expenses
Employee Compensation $150,862 $149,499 $178,024 282,989 Employee Benefits $68,525 $142,902 $76,393 107,638
Materials and Supplies $9,962 $14,688 $13,759 20,448
Contract Services – $10,000 $2,636 –
Cost Allocation $252,833 $133,310 $130,082 134,726
EXPENSES TOTAL $482,182 $450,399 $400,894 545,801
EXPENSES TOTAL $482,182 $450,399 $400,894 545,801
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
SENIOR PLANNER 0.1 0.1 0.1 0.1
ENV. PROGRAMS SPECIALIST 0 0.05 0.05 0.05
ASSIST TO THE CITY MNGR 0 0.05 0 0
MANAGEMENT ANALYST 0.2 0.1 0.05 0.05
FINANCE MANAGER 0.05 0.05 0.05 0.05
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 133
position_title FY2024 FY2025 FY2026 FY2027
PLANNING MANAGER 0.1 0 0 0.3
ASSISTANT HOUSING COORDINATOR 0 0 0.15 0.05
ADMINISTRATIVE ASSISTANT 0.4 0.4 0.4 0.4
ENVIRONMENTAL PROGRAMS ASSISTANT 0 0 0 0
ASSISTANT ENGINEER 0 0.1 0 0
SUSTAINABILITY MANAGER 0.05 0 0 0
SENIOR MANAGEMENT ANALYST 0 0 0.05 0.05
ASSIST DIR OF COMMITY DEV 0 0 0 0.2
TRANSPORTATION MANAGER 0.1 0 0 0
ASST DIRECTOR PARKS AND RECREATION 0 0 0 0.05
ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0.05 0
DIRECTOR OF COMM DEVELOPMENT 0.06 0.06 0.06 0.02
SENIOR HOUSING COORDINATOR 0 0.2 0.15 0.1
EMERGENCY SERVICES COORDINATOR 0.05 0 0 0.05
CHIEF TECHNOLOGY OFFICER 0.02 0.02 0.02 0.02
RECREATION MANAGER 0.15 0.15 0.15 0.1
ALLOCATION 1.28 1.28 1.28 1.59
Staffing allocations in this Division are increasing by 0.31 FTEs. This increase is due primarily to reallocations of the Planning Manager and Assistant Director of Community Development. Other staffing reallocations reflect actual time spent in this Division.
Proposed Budget Book FY 2026-2027 134
Budget Unit 100-11-131 General Fund - Commissions - Technology, Information & Communications Commission
Budget at a Glance
Total Revenues –
Total Expenditures 26,947.00
Total FTE 0.07
Program Overview
The Technology, Information, and Communications Commission advises the City Council and City Manager on all matters 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 committee 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 committee 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 $26,947 for the Technology, Information & Communications Commission program. This represents an increase of $4,687 (21%) from the FY 2025-26 Adopted Budget.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $12,411 $10,345 $11,586 13,215
Employee Benefits $4,564 $9,678 $4,717 5,859
Materials and Supplies $179 – $400 1,600
Council and Commissions
Technology, Information & Communications Commission
The increase is primarily due to the Commission hosting annual Cybersecurity Public Awareness event.
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 135
Cost Allocation $18,487 $5,963 $5,557 6,273
EXPENSES TOTAL $35,641 $25,986 $22,260 26,947
EXPENSES TOTAL $35,641 $25,986 $22,260 26,947
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
MANAGEMENT ANALYST 0.05 0.05 0.05 0.05
CHIEF TECHNOLOGY OFFICER 0.02 0.02 0.02 0.02
ALLOCATION 0.07 0.07 0.07 0.07
There are no changes to current levels of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 136
Budget Unit 100-11-140 General Fund - Commissions - Library Commission Budget at a Glance
Total Revenues –
Total Expenditures 29,831.00
Total FTE 0.10
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 $29,831 for the Library Commission program. This represents an increase of $2,504 (9.2%) from the FY 2025-26 Adopted Budget.
This increase is primarily due to increases in cost allocation, and increases in Employee Compensation and Benefits from contract negotiations.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Council and Commissions
Library Commission
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 137
Expenses
Employee Compensation $11,624 $12,227 $12,596 13,896
Employee Benefits $5,675 $11,271 $6,176 6,632
Materials and Supplies – – $150 2,150
Contract Services – – $2,000 –
Cost Allocation $22,279 $6,720 $6,405 7,153
EXPENSES TOTAL $39,578 $30,219 $27,327 29,831
EXPENSES TOTAL $39,578 $30,219 $27,327 29,831
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
RECREATION MANAGER 0.05 0.05 0.05 0.05
ALLOCATION 0.1 0.1 0.1 0.1
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 138
Budget Unit 100-11-142 General Fund - Commissions - Arts and Culture Commission Budget at a Glance
Total Revenues –
Total Expenditures 33,272.00
Total FTE 0.10
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 $33,272 for the Arts and Culture Commission program. This represents an increase of $2,405 (7.8%) from the FY 2025-26 Adopted Budget. The increase is primarily due to an increase in the cost of supplies.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Council and Commissions
Arts and Culture Commission
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 139
Expenses
Expenses
Employee Compensation $15,626 $15,781 $15,382 16,635
Employee Benefits $5,212 $11,533 $5,049 5,219
Materials and Supplies $3,575 $3,544 $4,220 4,300
Cost Allocation $15,845 $6,641 $6,216 7,118
EXPENSES TOTAL $40,257 $37,499 $30,867 33,272
EXPENSES TOTAL $40,257 $37,499 $30,867 33,272
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
SENIOR PLANNER 0.1 0.1 0.1 0.1
ALLOCATION 0.1 0.1 0.1 0.1
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 140
Budget Unit 100-11-150 General Fund - Commissions - Public Safety Commission Budget at a Glance
Total Revenues –
Total Expenditures 18,760.00
Total FTE 0.05
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 matters 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 Emergency Services Coordinator serves as staff liaison.
Proposed Budget
It is recommended that City Council adopt a budget of $18,760 for the Public Safety Commission program.
This amount represents a decrease of $1,157 (5.8%) from the FY 2025-26 Adopted Budget.
This decrease is due to the reallocation of staffing to better reflect actual time spent in this program.
Revenue 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.
Expenses
Expenses
Employee Compensation $9,391 $5,338 $10,412 9,261
Employee Benefits $4,309 $7,555 $4,303 4,059
Materials and Supplies – $2,001 $354 –
Contract Services – $10,000 – –
Cost Allocation $16,299 $5,292 $4,848 5,440
Council and Commissions
Public Safety Commission
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 141
EXPENSES TOTAL $29,999 $30,186 $19,917 18,760
EXPENSES TOTAL $29,999 $30,186 $19,917 18,760
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
EMERGENCY SERVICES COORDINATOR 0.05 0 0 0.05
ASSIST TO THE CITY MNGR 0 0.05 0 0
ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0.05 0
ALLOCATION 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 Director of the Parks and Recreation Department to the Emergency Services Coordinator.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 142
Budget Unit 100-11-155 General Fund - Commissions - Bicycle and Pedestrian Commission Budget at a Glance
Total Revenues –
Total Expenditures 16,554.00
Total FTE 0.05
Program Overview
The powers and functions of the Bicycle Pedestrian Commission shall be to review, monitor and suggest recommendations for City transportation matters 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:
To monitor and update the bicycle transportation plan and pedestrian transportation guidelines; To suggest recommendations, review and monitor the City’s general plan transportation element; To receive public input pertaining to bicycle and pedestrian transportation and infrastructure issues; To make recommendations regarding the implementation of roadway and transportation improvements as it pertains to bicycle and pedestrian needs;
To make recommendations regarding the allocation of funds for capital expenditures relating to bicycle and pedestrian transportation;
Any other activity that may be deemed appropriate and necessary.
Proposed Budget
It is recommended that City Council approve a budget of $16,554 for the Bicycle and Pedestrian Commission program. This represents a decrease of $261 (-0.02%) from the FY 2025-2026 Adopted Budget.
This budget is relatively unchanged from the prior fiscal year adopted budget.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $26,893 $3,778 $5,139 5,020
Employee Benefits $10,425 $7,718 $2,937 2,268
Materials and Supplies – – $230 636
Contract Services – – $636 –
Council and Commissions
Bicycle and Pedestrian Commission
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 143
Cost Allocation $23,773 $9,999 $7,873 8,630
EXPENSES TOTAL $61,092 $21,494 $16,815 16,554
EXPENSES TOTAL $61,092 $21,494 $16,815 16,554
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
TRANSPORTATION MANAGER 0.1 0 0 0
ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
ASSISTANT ENGINEER 0 0.1 0 0
ALLOCATION 0.15 0.15 0.05 0.05
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 144
Budget Unit 100-11-160 General Fund - Commissions - Parks and Recreation Commission Budget at a Glance
Total Revenues –
Total Expenditures 31,632.00
Total FTE 0.10
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 matters 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 matters, 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. The Assistant Director of Parks and Recreation serves as staff liaison.
Proposed Budget
It is recommended that City Council approve a budget of $31,632 for the Parks and Recreation Commission program. This represents an increase of $6,402 (25.4%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to increases in Employee Compensation and Benefits from contract negotiations and reallocation of staffing for this program.
Revenue and Expenditures
Council and Commissions
Parks and Recreation Commission
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 145
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $12,172 $10,878 $12,815 17,238
Employee Benefits $5,440 $11,319 $6,198 7,469
Materials and Supplies – – $40 –
Cost Allocation $21,167 $6,501 $6,177 6,925
EXPENSES TOTAL $38,779 $28,698 $25,230 31,632
EXPENSES TOTAL $38,779 $28,698 $25,230 31,632
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
RECREATION MANAGER 0.05 0.05 0.05 0
ASST DIRECTOR PARKS AND RECREATION 0 0 0 0.05
ALLOCATION 0.1 0.1 0.1 0.1
Staff time is being reallocated to better reflect actual time spent in this program.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 146
Budget Unit 100-11-165 General Fund - Commissions - Teen Commission Budget at a Glance
Total Revenues –
Total Expenditures 16,112.00
Total FTE 0.05
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 $16,112 for the Teen Commission program. This represents an increase of $1,204 (8.1%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to increases in cost allocation, and Employee Compensation and Benefits from contract negotiations.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $7,333 $7,618 $7,733 8,339
Employee Benefits $2,441 $5,681 $2,499 2,580
Materials and Supplies $947 – $294 294
Cost Allocation $30,189 $4,801 $4,382 4,899
EXPENSES TOTAL $40,910 $18,100 $14,908 16,112
EXPENSES TOTAL $40,910 $18,100 $14,908 16,112
Revenues
Council and Commissions
Teen Commission
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 147
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
RECREATION MANAGER 0.05 0.05 0.05 0.05
ALLOCATION 0.05 0.05 0.05 0.05
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 148
Budget Unit 100-11-170 General Fund - Commissions - Planning Commission Budget at a Glance
Total Revenues –
Total Expenditures 270,818.00
Total FTE 0.72
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 $270,818 for the Planning Commission program. This represents an increase of $146,745 (118%) from the FY 2025-26 Adopted Budget. The increase is primarily due to a reallocation of staff to better reflect actual time spent in this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Council and Commissions
Planning Commission
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 149
Expenses
Expenses
Employee Compensation $36,334 $32,843 $36,551 145,845
Employee Benefits $14,893 $29,078 $15,607 51,575
Materials and Supplies $5,261 $9,951 $6,460 10,000
Cost Allocation $40,713 $63,328 $65,455 63,398
EXPENSES TOTAL $97,201 $135,201 $124,073 270,818
EXPENSES TOTAL $97,201 $135,201 $124,073 270,818
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
ADMINISTRATIVE ASSISTANT 0.2 0.2 0.2 0.2
DIRECTOR OF COMM DEVELOPMENT 0.06 0.06 0.06 0.02
ASSIST DIR OF COMMITY DEV 0 0 0 0.2
PLANNING MANAGER 0 0 0 0.3
ALLOCATION 0.26 0.26 0.26 0.72
Staff time is being reallocated to better reflect actual time spent in this program.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 150
Budget Unit 100-11-175 General Fund - Commissions - Housing Commission Budget at a Glance
Total Revenues –
Total Expenditures 47,965.00
Total FTE 0.20
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 $47,965 for the Housing Commission program. This represents a decrease of $23,200 (-32.6%) from the FY 2025-26 Adopted Budget.
The decrease is primarily due to a reallocation of staff to better reflect actual time spent in this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Council and Commissions
Housing Commission
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 151
Expenses
Employee Compensation $4,314 $27,224 $41,556 26,495
Employee Benefits $5,292 $29,376 $19,134 10,704
Materials and Supplies – – $229 230
Cost Allocation $25,112 $10,316 $10,246 10,536
EXPENSES TOTAL $34,718 $66,915 $71,165 47,965
EXPENSES TOTAL $34,718 $66,915 $71,165 47,965
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05
PLANNING MANAGER 0.1 0 0 0
SENIOR HOUSING COORDINATOR 0 0.2 0.15 0.1
ASSISTANT HOUSING COORDINATOR 0 0 0.15 0.05
ALLOCATION 0.15 0.25 0.35 0.2
Staff time is being reallocated to better reflect the actual time spent in this program.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 152
Budget Unit 100-11-180 General Fund - Commissions - Sustainability Commission Budget at a Glance
Total Revenues –
Total Expenditures 19,002.00
Total FTE 0.05
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:
Monitor and update the CAP based upon quantified metrics to measure and evaluate mitigated impacts and community benefits.
Suggest recommendations, review, and monitor the City's General Plan Environmental Resources/Sustainability Element and its intersections with the CAP.
Advise the City Council how to strategically accelerate Cupertino's progress towards sustainability and recommend priorities to promote continued regional leadership in sustainability.
Periodically review policies governing specific practices and programs, such as greenhouse gas emissions reduction, water conservation, renewable energy, energy efficiency, materials management, and urban forestry. Illustrative examples include creation of infrastructure for low emissions vehicles, installation of renewable energy or energy efficiency technologies, drafting of water conservation or waste reduction policies, delivery of habitat restoration and conservation programs, design and roll-out of pollution prevention campaigns, etc.
Make recommendations regarding the allocation of funds for infrastructure and technology improvements to elevate operational performance of City facilities, businesses, educational institutions and homes by reducing costs, improving public health, and serving community needs.
Accept public input on the subject areas noted above and advise the City Council on ways to drive community awareness, behavior change, education and participation in City programs modeled upon the field's best practices.
Review and make recommendations to the City Council on Federal, State and regional policies related to sustainability that have the potential to impact City Council's goals and policies.
Pursue any other activity or scope that may be deemed appropriate and necessary by the City Council.
Proposed Budget
It is recommended that City Council approve a budget of $19,002 for the Sustainability Commission program.
This represents a increase of $1,792 (0.1%) from the FY 2025-26 Adopted Budget.
This budget is relatively unchanged from the prior fiscal year adopted budget.
Council and Commissions
Sustainability Commission
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 153
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation -$605 $6,740 $6,748 7,297
Employee Benefits $3,872 $5,636 $2,708 3,565
Materials and Supplies – -$809 $1,382 1,238
Cost Allocation $21,687 $6,800 $6,372 6,902
EXPENSES TOTAL $24,954 $18,366 $17,210 19,002
EXPENSES TOTAL $24,954 $18,366 $17,210 19,002
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
MANAGEMENT ANALYST 0.1 0 0 0
ENV. PROGRAMS SPECIALIST 0 0.05 0.05 0.05
SUSTAINABILITY MANAGER 0.05 0 0 0
ENVIRONMENTAL PROGRAMS ASSISTANT 0 0 0 0
ALLOCATION 0.15 0.05 0.05 0.05
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 154
Budget Unit 100-11-190 General Fund - Commissions - Audit Committee Budget at a Glance
Total Revenues –
Total Expenditures 34,908.00
Total FTE 0.10
Program Overview
The Audit Committee, 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 $34,908 for the Audit Committee program. This represents an increase of $3,786 (12.0%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to increases in salaries and benefits and cost allocation.
Revenue 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.
Expenses
Expenses
Employee Compensation $15,370 $16,728 $17,506 19,748
Employee Benefits $6,403 $14,057 $7,065 7,708
Cost Allocation $17,282 $6,949 $6,551 7,452
EXPENSES TOTAL $39,054 $37,733 $31,122 34,908
EXPENSES TOTAL $39,054 $37,733 $31,122 34,908
Council and Commissions
Audit Committee
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 155
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
FINANCE MANAGER 0.05 0.05 0.05 0.05
MANAGEMENT ANALYST 0.05 0.05 0 0
SENIOR MANAGEMENT ANALYST 0 0 0.05 0.05
ALLOCATION 0.1 0.1 0.1 0.1
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 156
Budget Units
Expenses
City Manager 4,039,297
City Clerk 1,337,739
City Manager Discretionary 50,000
City Attorney 4,911,383
Human Resources 4,643,606
EXPENSES TOTAL 14,982,025
Budget at a glance
Total Revenues 8,770,387.00
Total Expenditures 14,982,025.00
Total FTE 25.30
Organization
Tina Kapoor, City Manager
Floy Andrews, Contract City Attorney
Administration
Department Overview
PROPOSED
FY2027
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 157
City Attorney's Office
The organizational structure for the City Attorney's Office is as follows:
City Attorney – leads the office and directly supervises:
Senior Management Analyst
Senior Assistant City Attorney
NOTABLE ACCOMPLISHMENTS
Sheriff’s Office Negotiations – Leading the City’s efforts to negotiate a complex, multijurisdictional agreement with the Santa Clara County Sheriff’s Office and evaluate other public safety models while finding ways to protect the City’s long-term fiscal sustainability. Good Governance – Staff organized a City Council orientation in December and a Council retreat in February to touch on important values on good governance and roles and responsibilities.
Strategic Planning – The City Manager led development of a revised Strategic Plan and Vision Strategy process that aligns the Strategic Plan, City Work Program, Capital Improvement Program, budget, and election cycle to be adopted this coming fiscal year.
Film Permit and Ordinance – Developed a new Filming Permit and application process, which provided a standardized framework for regulating film production within Cupertino. The City Council adopted the ordinance in Spring, enabling an online application process, fee schedule, public noticing requirements, and enforcement criteria.
Ceremonial Calendar – Improved the ceremonial matters process for proclamations and certificates of recognition at Council meetings and external events, and added department recognition at Council Proposed Budget Book FY 2026-2027 158
meetings.
Legislative Affairs – Staff updated the City’s Legislative Policy in February and reestablished the Legislative Review Committee (LRC) and adopted the 2026 Legislative Platform. Staff will continue to work with the City’s lobbyist and the LRC throughout the 2026 Legislative Session.
The triannual production of SCENE was brought in-house resulting in savings to the City.
City Organizational Updates – Improved organizational efficiency through staffing changes resulting in significant savings to the City and ensuring executive oversight of key functions. This included operational structure changes such as moving the Economic Development, Emergency Services, and Human Resources into the City Manager’s Office (CMO), as well as recommending the conversion of the Administrative Services Department into Finance Department.
FY 25-27 City Work Program – Staff continues to work on the two-year FY 25-27 CWP and facilitates regular quarterly updates on the public dashboard. In December, Council added 6 new projects to the ongoing CWP, which were smoothly integrated into the ongoing list of projects.
Policy Updates – Staff developed and cleaned up various administrative and Council policies throughout the year including; Sister and Friendship City Policy, Flag Policy, Lost and Found Policy, Business Card Policy, Commissioners Handbook, Naming City Facilities policy, and the Meeting Room Use Policy.
Finch Property – Engaged in ongoing negotiations with the school district regarding 10480 Finch Avenue.
Disaster Council Activities - Disaster Council meetings were resumed in October 2025, following the last meeting in November 2022, reaffirming the City’s commitment to emergency preparedness and coordination. The next meeting is planned for Summer 2026.
Cupertino 70 Anniversary – Staff led the recognition of the City’s 70th anniversary with an event on November 26, 2025, at the Quinlan Community Center. The celebration included an Art Showcase in the lobby featuring more than thirty pieces of original artwork submitted by residents.
SCENE Newsletter Updates – Staff brought the SCENE newsletter in-house, saving the City thousands of dollars in annual design costs.
Press Release Updates – The City resumed the practice of publishing frequent press releases to keep the community informed about important projects, initiatives, and accomplishments, issuing twenty press releases between April 11, 2025, and February 27, 2026.
Promotion and Outreach – Staff supported the City’s first Dine Out for the 4th, Restaurant Week, and Big Game campaigns through a coordinated communications effort, including lawn signs, pop-up banners, social media, and print postcards. These efforts promoted Cupertino as a dining and entertainment destination for residents and visitors.
Mayor’s Initiative – Led the City’s promotional efforts for the first Mayor’s Initiative in several years, overseeing social media campaigns and e-notification strategies to engage the community and increase awareness.
Increased Commission Support – Established a new Administrative Assistant position classification in response to Council direction to support Commission and Committee meeting functions, including hybrid meetings, improving consistency and meeting support.
Commissioners Handbook Update – Staff worked with commission liaisons and made updates to the Commissioners Handbook that align with updates to the Council Procedures Manual. These updates provide clarity for staff and commissioners on legal and administrative procedures.
Block Leader Program – Expanded the Block Leader program and increased resident participation through emergency preparedness events, including Build-a-Kit workshops that guided residents in assembling emergency supplies and tailoring preparedness plans to their needs. The Block Party Grant program continued supporting community-led neighborhood events.
Neighborhood Watch – Partnered with the Santa Clara County Sheriff's Office to deliver Neighborhood Watch trainings, strengthening resident capacity for neighborhood-level crime prevention.
Emergency Preparedness – Delivered multiple Personal Preparedness trainings and supported growth of the CERT program, increasing preparedness at both the individual and City-wide levels and encouraging residents to coordinate preparedness efforts with neighbors. Currently recruiting for a full-time Emergency Coordinator.
The Great Shake Out – Coordinated a City Hall earthquake evacuation drill as part of the statewide Great ShakeOut, involving City staff and Community Emergency Response Team (CERT) volunteers, and evaluating emergency communications, the emergency contact system, and staff evacuation procedures. th
Proposed Budget Book FY 2026-2027 159
Explore Cupertino Hub – Launched a new online hub to help residents and visitors explore the city, highlighting key attractions, businesses, and community resources.
Business License Amnesty Program – Led citywide awareness campaign, including business outreach, social media engagement, coordination with stakeholders such as the Economic Development Committee and Cupertino Chamber of Commerce, and postcard noticing to increase awareness and participation among out of compliance businesses.
Shop Local Initiatives – Launched multiple seasonal and event-based campaigns to promote local businesses and encourage community spending, including activations for Holiday Shop Local, Restaurant Week, The Big Game 2026, Dine Out July Fourth, and Bike to Work Day, collectively supporting local restaurants and retailers throughout the year.
Cupertino Business Resource Hub – Launched a free online centralized platform to better connect local businesses with relevant resources and improve outreach to the City’s diverse business community.
Cupertino Chamber of Commerce – Renegotiated the City–Chamber agreement, updating the scope of services and reducing the budget, resulting in $47,000 in General Fund savings while maintaining program continuity into the third year of the agreement.
Economic Development Committee – Served as staff liaison to the nine-member City Council–appointed committee, reactivated in 2025 to advance citywide economic development efforts.
Destination Maps – Developed a series of maps to highlight key destinations and improve access to local amenities, including the Retail Shopping Map (shopping centers and retail businesses), Public Art & Recreation Map (40+ points of interest), and Wine Country Map (nearby wineries), supporting community engagement and visitor awareness across Cupertino.
Business License Directory – Developed a public-facing directory of active business license holders, including both in-city and out-of-city businesses operating in Cupertino.
Business Resources Database – Developed a centralized collection of support services to assist businesses at various stages, including starting, managing, and growing operations.
Project Coordination – Facilitated an inter-departmental coordination to support permit facilitation for new and existing revenue-generating businesses, including Local Kitchens, Kunjip Express, Masakali Indian Cuisine, and Safar by Karimi.
Professional Women’s Business Luncheon – Continued to host this luncheon to support business retention, expansion, and attraction in Cupertino, with food for the event sponsored by a local business.
Small Business Workshop Initiative – Continued the technical assistance workshop initiative for small businesses, with SCORE (Service Corps of Retired Executives) joining a technical partner.
Cupertino Business Outreach Program – Continued citywide outreach to local businesses, including top sales tax–generating businesses, hotels, restaurants, and office tenants, to strengthen relationships with the City. Expanded the program to include Economic Development Committee participation and introduced an online business intake questionnaire to broaden engagement.
Project UnlockED – Coached and mentored Cupertino High School Future Business Leaders of America students on an economic development project, contributing to their third-place finish at the 2025 National Leadership Conference.
Small Business Saturday – Led the City’s Small Business Saturday initiative, resulting in a promotional video encouraging the community to shop small and a City Council proclamation recognizing the day.
Business Connect e-Newsletter – Sustained outreach to local businesses through the City’s email subscription system, distributing over 30 e-notifications.
Staying in Cupertino – Developed the Staying in Cupertino webpage to support Transient Occupancy Tax (TOT) revenue by promoting local lodging options in Cupertino.
Targeted Business Outreach – Conducted targeted outreach related to Monthly Chats with Mayor Chao, Oversized Vehicle Parking Ordinance, and housing redevelopment projects involving potential business displacement.
Business Attraction & Retention – Advanced the City’s business attraction and retention efforts by supporting the activation of vacant commercial spaces, facilitating storefront reopenings, and assisting businesses displaced by housing development projects with relocation support. Businesses supported include Whole Foods, Taste Buds Kitchen, Voyager Craft Coffee, and Panera Bread.
Educational and Cultural trainings, webinars, and activities – Offered staff training through webinars, onsite and virtual presentations, and activities to increase cultural awareness, knowledge, and communication as Proposed Budget Book FY 2026-2027 160
well as promote a more inclusive and diverse work environment. Key events in FY25/26 included Hispanic Heritage Month, Diwali and Lunar New Year.
Recruitment and Retention – In FY 2024-25, there were 28 Full Time (FT) recruitments. As of April 30, FY 2025-26, there have been 23 FT recruitments.
Benefits Administration – Continued to process a considerable number of employee onboarding and onboarding functions. In FY 2024-25, there were 22 new FT hires, 21 separations. As of April 30, FY 2025- 26, there have been 25 new FT hires and 8 FT separations.
Employee Engagement Initiatives – Initiated additional efforts to improve citywide employee engagement and morale. Human Resources staff successfully managed the Annual Service Awards Employee luncheon, Annual Health and Benefits Fair and Lunch, as well as administering the City Manager’s new employee meet and greet sessions. Additionally, Human Resources organized and planned events for Public Service Employee appreciation weeks which included daily events including an employee picnic at Creekside Park.
Risk Management – Administer the City’s Worker’s Compensation program and coordinate with the City’s third-party administrator. Managed and administered the City’s unemployment insurance program as well as the City’s DOT commercial driver program. Coordinated City’s OSHA safety and training programs and Risk Management Committee.
Organizational Development and Training – In FY 2025-26, Human Resources offered employees with 41 with a variety of training programs to assist employees with not only required training, but also for their professional growth, health, and wellness as well as retirement and financial planning. Human Resources also coordinated the City’s participation in the Santa Clara and San Mateo County NextGen program and the Santa Clara County Leadership Academy to promote professional growth and succession planning within our agency. Additionally, Human Resources worked with four neighboring municipal agencies to pilot a newly created West Valley Regional supervisor academy which began in the Spring of 2026. HR is also partnered with Santa Clara University’s Leavey School of Business to offer management staff a Leadership Excellence Series
NEW INITIATIVES
Public Engagement Strategy – Initiated work on this City Work Program item following Council addition in December 2025, including research on best practices in other cities and development of a comprehensive approach to improve consistency in Citywide public engagement.
Emergency Operations Plan – Engaged a consulting group to update the City’s Emergency Operations Plan to ensure the implementation of best practices in the field of emergency management.
The Public Safety Commission – Continued focus on alert and warning systems, including increasing resident registration for AlertSCC. The Commission will also address scam and fraud prevention.
Council Goals Update – Advanced planning for the next Council Goals, Vision Strategy, and two-year City Work Program, including preparation for a Council workshop to identify priorities and a structured process to develop the FY 27–29 City Work Program.
Legislative RFP – Planned issuance a legislative RFP in late Summer 2026 to solicit proposals for the next City Lobbyist. This process will include the Council approved criteria and input for final selection as the lobbyist will be working directly with the City Council and the Legislative Review Committee.
Cupertino Summer of Celebrations – Launched a new shop local campaign as part of the City’s celebration of the FIFA World Cup and Independence Day.
Economic Development City Work Program Initiatives – Advancing three City Work Program projects focused on retail preservation, permit streamlining, and small business revitalization.
Microsoft Copilot Staff Upskilling – This initiative focuses on practical, role‑based training that helps staff use Copilot for everyday tasks such as drafting documents, summarizing information, data analysis, and meeting preparation. Training is paired with clear governance, security, and ethical use guidelines to ensure Copilot is used safely and effectively. By building internal capability and confidence with Copilot, the City is empowering staff to work smarter while maximizing the value of our Microsoft 365 investment.
Proposed Budget Book FY 2026-2027 161
Performance Measures
Administration Division
Goal: Strengthen trust and effectiveness in City operations through prompt and transparent communication.
Benefit: Council and residents experience responsive government and improved confidence in City operations.
Performance Measures FY24
Jul-Jun
FY25
Jul-Jun
FY26
Jul-Dec
Percent of council requests acknowledged within 24
hours N/A N/A 85%
Percentage of unique and reasonable citizen requests
to the City Manager’s Office acknowledged in 3
business days
N/A N/A 90%
Percent of Council requests/inquiries on published
agenda items that are provided to Council at or before
the Council meeting
N/A N/A 100%
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 2024
July-June
FY 2025
July-June
FY 2026
July-Dec
Percent of City Council preliminary agenda posted on
time, in accordance with Open Government
Ordinance, 6 business days prior to meeting
N/A N/A 100%
Percent of City Council Agendas packets prepared,
posted and delivered 4 days prior to meeting N/A N/A 100% Percent of timely filings of Fair Political Practices
Commission Form 700 Statements of Economic
Interest
N/A N/A 79%
Percent of timely filings of Fair Political Practices
Commission Forms 460/Campaign Committee reports N/A N/A 42% Percent of City Council minutes for regular meetings
presented for Council approval by the following regular meeting
100% 100% 100%
Percent of adopted City Council resolutions and
ordinances processed and scanned to Laserfiche
within 1 week of Clerk’s office receipt of final, signed document
85% / 60% 100% /
100% 100%
Percent of Public Record Act requests responded to
by the Statutory deadline date 99% 99% 100%
Office of Communications
Goal: Promote and increase interest and participation in City services, programs, initiatives, and projects while building community pride and positive identification with the City among its residents.
Proposed Budget Book FY 2026-2027 162
Benefit: Residents have access to timely, engaging, and important information.
Performance Measures FY24
Jul-Jun
FY25
Jul-Jun
FY26
Jul-Dec
Growth of number of total followers on City social
media channels (Facebook, LinkedIn, X, Instagram,
Nextdoor)
N/A N/A 3,655
(+7.6%)
Percent of residents that rate the overall quality of
information on the City’s communications channels as
good or excellent
N/A N/A N/A
Social media engagement: total number of followers
including City Hall Nextdoor, Facebook, Twitter, and
Instagram accounts
N/A N/A 51,810
Social media engagement: average number of
engagements (reactions, comments, shares, and
clicks) per post on City Hall Facebook account
N/A N/A 31
Community engagement: total number of City
Manager Newsletter recipients N/A N/A 4803
Total number of Gov Delivery Notices sent N/A N/A 362
*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.
Office of Economic Development
Goal: To actively pursue opportunities in the areas of business attraction, retention, and expansion as a means of promoting economic vitality, and strengthening the City’s sales tax base to support Cupertino’s excellent quality of life for its residents, businesses, and daytime population.
Benefit: Cupertino's economy and sales tax revenue base are diversified to further enhance the City's financial stability and its ability to provide quality amenities to the community.
Performance Measures FY24
Jul-Jun
FY25
Jul-Jun
FY26
Jul-Dec
Number of meetings conducted with developers and
prospective businesses N/A N/A 70
Growth in the number of people subscribing to
Business Connect Newsletter N/A N/A 628
Percentage growth of number of corporate visits N/A N/A +7% Proposed Budget
It is recommended that City Council approve a budget of $14,982,025 for the Administration department. This amount represents an increase of $8,557,972 (133.2%) from the FY 2025-26 Adopted Budget.
This increase is primarily due to the reorganization of the Human Resources Division into the City Manager’s Office. This transfer added 5 FTE and over $3 million in contract services. The department also saw a return of
2.95 positions in the Emergency Management division which was moved to the Parks and Recreation department in Fiscal Year 2026. There was an additional increase in contract services for legal services in the City Attorney's Office division and funds were added to the City Clerk's Office due to the 2026 election cycle.
Proposed Budget Book FY 2026-2027 163
Proposed Expenditures by Division
Data Updated: May 05, 2026, 12:06 AM View Report
Total Proposed Budget (FY2027)
$14,982,025
CCiittyy MMaannaaggeerr::
$$44,,003399,,229977 ((2277%%))
City Manager:
$4,039,297 (27%)
CCiittyy CClleerrkk::
$$11,,333377,,773399 ((99%%))
City Clerk:
$1,337,739 (9%)
CCiittyy MMaannaaggeerr DDiissccrreettiioonnaarryy::
$$5500,,000000 ((00%%))
City Manager Discretionary:
$50,000 (0%)
CCiittyy AAttttoorrnneeyy::
$$44,,991111,,338833 ((3333%%))
City Attorney:
$4,911,383 (33%)
HHuummaann RReessoouurrcceess::
$$44,,664433,,660066 ((3311%%))
Human Resources:
$4,643,606 (31%)
City Manager
City Clerk
City Manager Discretionary
City Attorney
Human Resources
Department Expenditure History
Data Updated: May 05, 2026, 12:06 AM View Report
Expenses
Actual - FY2024 Actual - FY2025 Adopted - FY2026 Proposed - FY2027 $0
$2.5M
$5M
$7.5M
$10M
$12.5M
Revenues and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $3,173,960 $2,419,097 $3,115,770 4,414,516 Employee Benefits $1,362,922 $2,119,932 $1,276,012 3,421,294 Materials and Supplies $182,617 $117,861 $285,339 411,056 Contract Services $1,028,893 $992,980 $683,932 5,770,557 Contingencies $5,732 $20,544 $50,000 50,000
Special Projects $224,741 $0 $555,000 –
Cost Allocation $339,655 $233,751 $458,000 914,602
EXPENSES TOTAL $6,318,520 $5,904,165 $6,424,053 14,982,025 EXPENSES TOTAL $6,318,520 $5,904,165 $6,424,053 14,982,025
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 164
Revenues
Transfers In – – – 2,669,000
Intergovernmental $56,953 $0 – 6,250
Charges for Services $1,201,781 $2,672,448 $2,432,652 5,612,370 Miscellaneous Revenue $202 $556 – 12,500
Other Financing Sources – – – 470,267
REVENUES TOTAL $1,258,935 $2,673,004 $2,432,652 8,770,387 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 FY2024 FY2025 FY2026 FY2027
allocation
CITY CLERK 1 1 1 1
SENIOR ASSISTANT CITY ATTORNEY 1 1 1 1
EXEC ASST TO THE CITY COUNCIL 0.5 0.5 0.5 0.5
ASSIST TO THE CITY MNGR 0 0.95 0 1
HUMAN RESOURCES TECH 0 0 0 2
MANAGEMENT ANALYST 2.7 1 1 0
MULTIMEDIA COMMUNICATIONS SPEC 0 0 0 0
PUBLIC INFORMATION OFFICER 0.85 0 0 0
ADMINISTRATIVE ASSISTANT 1 2 3 3
HUMAN RESOURCES ANALYST II 0 0 0 2
DEPUTY CITY MANAGER 1 1 1 1
ENVIRONMENTAL PROGRAMS ASSISTANT 0.35 0 0 0
LEGAL SERVICES MANAGER 1 1 0 0
CITY ATTORNEY 1 1 1 1
SUSTAINABILITY MANAGER 0.75 0 0 0
COMMS AND MARKETING COORDINATOR 0 0.85 0.85 0.9
COMMUNITY RELATIONS COORD 0 0 0 1
DEPUTY CITY CLERK 1 1 1 1
SENIOR MANAGEMENT ANALYST 1 1 1 2
COMMUNITY OUTREACH SPECIALIST 0.9 0.9 0.9 0.95
CITY MANAGER 1 1 1 1
EMERGENCY SERVICES COORDINATOR (COMMUNITY RELATIONS
COORD) 1 1 0 0
SPECIAL PROJECT EXECUTIVE 1 0 0 0
ASSISTANT CITY MANAGER 1 1 1 0
SR OFFICE ASSISTANT 1.8 1.8 1.9 2
RECEPTIONIST 0 0 1 1
ECONOMIC DEVELOPMENT MANAGER 1 1 1 1
EMERGENCY SERVICES COORDINATOR 0.95 0 0 0.95
EMERGENCY SERVICES COORDINATOR (COMMUNITY RELATIONS
COORDINATOR) 0 0 0 0
HUMAN RESOURCES MANAGER 0 0 0 1
ALLOCATION 21.8 19 18.15 25.3
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 165
Staffing levels in Administration are changing due to the transfer of an Emergency Manager (Assistant to the City Manager), Emergency Services Coordinator (Management Analyst), and Community Relations Coordinator from the Parks & Recreation department. Also, the transfer of the Human Resources division from Administrative Services includes a Human Resources Manager, two Human Resources Analyst II, and two Human Resources Techs. Additionally, the Assistant City Manager position was eliminated, and the Management Analyst within the City Attorney's Office was reclassified to Senior Management Analyst.
Proposed Budget Book FY 2026-2027 166
Budget Unit 100-15-141 General Fund - City Attorney - City Attorney Budget at a Glance
Total Revenues 262,501.00
Total Expenditures 1,965,847.00
Total FTE 2.60
Program Overview
The City Attorney is appointed by the City Council to manage the legal affairs of the City, including the operation of the City Attorney’s Office. The City Attorney’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 Attorney’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 matters 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 $1,965,847 for the Office of the City Attorney program. This represents an increase of $440,877 (28.91%) from the FY 2025-26 Adopted Budget. The increase is primarily due to an increasing number of litigated matters, legal issues related to complex development projects and increasing number of public records act requests.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Administration
City Attorney
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 167
Expenses
Expenses
Employee Compensation $664,799 $587,438 $703,127 700,463 Employee Benefits $255,085 $526,399 $270,984 266,151
Materials and Supplies $15,009 $15,398 $25,562 19,705
Contract Services $667,931 $577,411 $470,528 920,422
Cost Allocation – $49,555 $54,769 59,106
EXPENSES TOTAL $1,602,825 $1,756,201 $1,524,970 1,965,847 EXPENSES TOTAL $1,602,825 $1,756,201 $1,524,970 1,965,847 Revenues
Charges for Services $278,070 $344,544 $382,216 262,501 REVENUES TOTAL $278,070 $344,544 $382,216 262,501
Staffing
The following table lists full-time equivalents (FTE) by position. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year. position_title FY2024 FY2025 FY2026 FY2027
allocation
MANAGEMENT ANALYST 0 0 1 0
SENIOR ASSISTANT CITY ATTORNEY 1 1 1 1
LEGAL SERVICES MANAGER 1 1 0 0
CITY ATTORNEY 1 1 1 1
SENIOR MANAGEMENT ANALYST 0 0 0 0.6
ALLOCATION 3 3 3 2.6
There are no changes to the current levels of staffing. An interim City Attorney was outsourced beginning of FY 2025.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 168
Budget Unit 100-15-417 General Fund - City Attorney's Office - Insurance Administration Budget at a Glance
AD: Insurance Administration
Total Revenues 1,957,317.00
Total Expenditures 2,945,536.00
Total FTE 0.40
Program Overview
Insurance Administration: General and Excess Liability, Property, Cyber Liability and Excess, Auto Liability, and Auto Physical Damage programs.
Service Objectives
To ensure the City is protected from liability and losses.
Proposed Budget
It is recommended that City Council approve a budget of $2,945,536 for Insurance Administration. This is an increase of $2,945,536 (100.0%) from the FY25-26 Adopted Budget.
In FY 2025-2026, this program was moved from Human Resources to the Office of the City Attorney. The prior year information can be found under Budget Unit 100-44-417. The variance is due to insurance premium increases.
Revenue and Expenditures
The following table details revenues and expenditures 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.
AD: Insurance Administration
Expenses
Expenses
Employee Compensation – – – 67,598
Employee Benefits – – – 25,094
Contract Services – – – 2,843,751
Cost Allocation – – – 9,093
EXPENSES TOTAL – – – 2,945,536
EXPENSES TOTAL – – – 2,945,536
Office of City Attorney
Insurance Administration
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 169
Revenues
Charges for Services – – – 1,957,317
REVENUES TOTAL – – – 1,957,317
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.
AD: Insurance Administration
position_title FY2024 FY2025 FY2026 FY2027
allocation
SENIOR MANAGEMENT ANALYST 0 0 0 0.4
ALLOCATION 0 0 0 0.4
Staff time is being reallocated to reflect actual time spent in this program, including but not limited to liability claims management.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 170
Programs
City Clerk
Duplicating and Mail Services
Elections
Division Overview
The City Clerk’s office responsibilities include administrative and clerical duties associated with the City Council’s agenda and actions, publishing legal notices, posting notice of commission vacancies, processing codification of City’s Municipal Code, records management, compliance with Public Records Act requests, administering local elections, and providing mail service for City Departments.
The Duplicating and Mail Services program manages citywide mail and printing supplies and oversees maintenance of related equipment.
The Elections program administers general municipal elections, including processing candidate filings and Fair Political Practices Commission (FPPC) documents.
Budget at a Glance
Total Revenues 294,894.00
Total Expenditures 1,337,739.00
Total FTE 5.00
Service Objectives
Ensure compliance with the Brown Act open meeting law, Maddy Act Commission vacancy requirements, and the Public Records Act, and maintain a records management system that complies with state law and provides timely access to City records.
Provide accurate and timely information to the public, City Council, and staff.
Respond to Public Record Act requests within the timeframes specified by state law.
Provide City Council packets to the Council, staff, and the public in accordance with the Brown Act.
Process and sort incoming and outgoing mail for all departments and oversee citywide supply of paper, envelopes, postage, and maintenance of mailing equipment.
Administer local elections, ballot measures, and FPPC filings in compliance with state law, including timely processing of election filings.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Administration
City Clerk: Division Summary
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 171
Expenses
Employee Compensation $430,610 $439,060 $613,171 654,474 Employee Benefits $173,521 $428,260 $278,916 272,210
Materials and Supplies $50,647 $40,951 $93,089 95,781
Contract Services $53,624 $170,356 $49,914 201,610
Cost Allocation $3,855 $49,572 $63,897 113,664
EXPENSES TOTAL $712,257 $1,128,198 $1,098,987 1,337,739 EXPENSES TOTAL $712,257 $1,128,198 $1,098,987 1,337,739 Revenues
Charges for Services $87,435 $230,102 $253,192 282,394
Miscellaneous Revenue $202 – – 12,500
REVENUES TOTAL $87,637 $230,102 $253,192 294,894
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 FY2024 FY2025 FY2026 FY2027
allocation
DEPUTY CITY CLERK 1 1 1 1
ADMINISTRATIVE ASSISTANT 1 1 2 2
SR OFFICE ASSISTANT 0.5 0.5 1 1
CITY CLERK 1 1 1 1
ALLOCATION 3.5 3.5 5 5
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 172
Budget Unit 100-13-130 General Fund - City Clerk - City Clerk Budget at a Glance
Total Revenues 248,811.00
Total Expenditures 1,131,022.00
Total FTE 5.00
Program Overview
The City Clerk’s office responsibilities include administrative and clerical 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 local elections, and providing mail service for City Departments.
Service Objectives
Ensure compliance with the Brown Act open meeting law, Maddy Act Commission vacancy requirements, and the Public Records Act, and maintain a records management system that complies with state law and provides timely access to City records.
Provide accurate and timely information to the public, City Council, and staff.
Respond to Public Record Act requests within the timeframes specified by state law.
Provide City Council packets to the Council, staff, and the public in accordance with the Brown Act.
Proposed Budget
It is recommended that City Council approve a budget of $1,131,022 for the City Clerk division. This amount represents an increase of $73,596 (6.9%) from the FY 2025-26 Adopted Budget.
The increase is due to staff compensation increases and cost allocation changes due to the updated Cost Allocation Plan (CAP) based on a CAP study performed in 2023. Increases were slightly offset by reductions in benefits and materials and supplies.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $430,610 $439,060 $613,171 654,474 Administration
City Clerk
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 173
Employee Benefits $173,521 $428,260 $278,916 272,210
Materials and Supplies $38,693 $25,595 $60,581 49,941
Contract Services $43,387 $41,164 $40,861 40,733
Cost Allocation – $49,555 $63,897 113,664
EXPENSES TOTAL $686,211 $983,634 $1,057,426 1,131,022
EXPENSES TOTAL $686,211 $983,634 $1,057,426 1,131,022
Revenues
Charges for Services $87,435 $201,273 $222,387 248,811
Miscellaneous Revenue $202 – – –
REVENUES TOTAL $87,637 $201,273 $222,387 248,811
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 FY2024 FY2025 FY2026 FY2027
allocation
DEPUTY CITY CLERK 1 1 1 1
ADMINISTRATIVE ASSISTANT 1 1 2 2
SR OFFICE ASSISTANT 0.5 0.5 1 1
CITY CLERK 1 1 1 1
ALLOCATION 3.5 3.5 5 5
Staffing is unchanged from the previous fiscal year.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 174
Budget Unit 100-13-132 General Fund - City Clerk - Duplicating and Mail Services Budget at a Glance
Total Revenues 33,583.00
Total Expenditures 45,366.00
Total FTE –
Program Overview
The Duplicating and Mail Services program manages citywide mail and printing supplies and oversees maintenance of related equipment.
Service Objectives
Process and sort incoming and outgoing mail for all departments and oversee citywide supply of paper, envelopes, postage, and maintenance of mailing equipment.
Proposed Budget
It is recommended that City Council approve a budget of $45,366 for the Duplicating and Mail Services program. This amount represents an increase of $3,805 (9.1%) from the FY 2025-26 Adopted Budget.
This increase is primarily due to materials costs for Citywide mailings for mandatory public noticing as a result of postal fee increases.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Materials and Supplies $11,377 $9,421 $32,508 35,366
Contract Services $10,237 $4,482 $9,053 10,000
Cost Allocation $3,375 – – –
EXPENSES TOTAL $24,989 $13,903 $41,561 45,366
EXPENSES TOTAL $24,989 $13,903 $41,561 45,366
Revenues
Charges for Services – $28,829 $30,805 33,583
REVENUES TOTAL – $28,829 $30,805 33,583
Administration
Duplicating and Mail Services
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 175
Staffing
There is no staffing associated with this program.
Proposed Budget Book FY 2026-2027 176
Budget Unit 100-13-133 General Fund - City Clerk - Elections Budget at a Glance
Total Revenues 12,500.00
Total Expenditures 161,351.00
Total FTE –
Program Overview
The Elections program administers general municipal elections, including processing candidate filings and Fair Political Practices Commission (FPPC) documents.
Service Objectives
Administer local elections, ballot measures, and FPPC filings in compliance with state law, including timely processing of election filings.
Proposed Budget
It is recommended that City Council approve a budget of $161,351 for the Elections program. This amount represents an increase of $161,351 (100%) from the FY2025-26 Adopted Budget.
The increase is due to the election cycle.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Materials and Supplies $577 $5,934 – 10,474
Contract Services – $124,710 – 150,877
Cost Allocation $480 $17 – –
EXPENSES TOTAL $1,057 $130,661 – 161,351
EXPENSES TOTAL $1,057 $130,661 – 161,351
Revenues
Miscellaneous Revenue – – – 12,500
REVENUES TOTAL – – – 12,500
Staffing
Administration
Elections
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 177
There is no staffing associated with this program.
Proposed Budget Book FY 2026-2027 178
Programs
City Manager
Office of Communications
Office of Emergency Management
Including Community Outreach and Neighborhood Watch
Economic Development
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 Citys goals and objectives.
Budget at a Glance
AD: City Manager Division
Total Revenues 1,932,971.00
Total Expenditures 4,039,297.00
Total FTE 12.30
Service Objectives
Accomplish the Council-approved City Work Program.
Manage City operations.
Ensure all laws and ordinances of the City are duly enforced and that all franchises, permits, licenses, and privileges granted by the City are faithfully performed and observed.
Advise the City Council on policy, and the financial conditions and needs of the City.
Research and respond to concerns regarding City operations of the City.
Ensure that engagement and transparency are a City priority.
Prepare reports and initiate recommendations as may be desirable or as requested by the City Council.
Ensure that the Citys policies and procedures provide a foundation for a secure financial position.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $2,078,551 $1,392,599 $1,799,472 2,167,021 Administration
City Manager: Division Summary
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 179
Employee Benefits $934,315 $1,165,274 $726,112 867,237
Materials and Supplies $116,960 $61,512 $166,688 192,470 Contract Services $307,338 $245,213 $163,490 270,265
Special Projects $224,741 $0 $555,000 –
Cost Allocation $335,800 $134,624 $339,334 542,304
EXPENSES TOTAL $3,997,706 $2,999,222 $3,750,096 4,039,297 EXPENSES TOTAL $3,997,706 $2,999,222 $3,750,096 4,039,297 Revenues
Intergovernmental $56,953 $0 – 6,250
Charges for Services $836,276 $2,097,802 $1,797,244 1,926,721 Miscellaneous Revenue $0 $556 – –
REVENUES TOTAL $893,229 $2,098,358 $1,797,244 1,932,971 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 FY2024 FY2025 FY2026 FY2027
allocation
EXEC ASST TO THE CITY COUNCIL 0.5 0.5 0.5 0.5
ASSIST TO THE CITY MNGR 0 0.95 0 1
MANAGEMENT ANALYST 2.7 1 0 0
MULTIMEDIA COMMUNICATIONS SPEC 0 0 0 0
PUBLIC INFORMATION OFFICER 0.85 0 0 0
ADMINISTRATIVE ASSISTANT 0 1 1 1
DEPUTY CITY MANAGER 1 1 1 1
ENVIRONMENTAL PROGRAMS ASSISTANT 0.35 0 0 0
SUSTAINABILITY MANAGER 0.75 0 0 0
COMMS AND MARKETING COORDINATOR 0 0.85 0.85 0.9
SENIOR MANAGEMENT ANALYST 1 1 1 1
COMMUNITY OUTREACH SPECIALIST 0.9 0.9 0.9 0.95
CITY MANAGER 1 1 1 1
SPECIAL PROJECT EXECUTIVE 1 0 0 0
ASSISTANT CITY MANAGER 1 1 1 0
SR OFFICE ASSISTANT 1.3 1.3 0.9 1
RECEPTIONIST 0 0 1 1
ECONOMIC DEVELOPMENT MANAGER 1 1 1 1
EMERGENCY SERVICES COORDINATOR 0.95 0 0 0.95
EMERGENCY SERVICES COORDINATOR (COMMUNITY RELATIONS
COORDINATOR) 1 1 0 1
ALLOCATION 15.3 12.5 10.15 12.3
Assistant City Manager position was eliminated and the duties were absorbed by the City Manager and Deputy City Manager. Senior Office Assistant, Communications and Marketing Coordinator, and Community Outreach Specialist were reallocated to more accurately reflect distribution of staff time. Emergency Manager (Assistant to the City Manager), Emergency Services Coordinator (Management Analyst), and Community Relations Coordinator were moved from Parks & Recreation as part of departmental reorganizations.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 180
Proposed Budget Book FY 2026-2027 181
Budget Unit 100-12-120 General Fund - City Manager - City Manager Budget at a Glance
Total Revenues 1,370,726.00
Total Expenditures 1,990,545.00
Total FTE 6.50
Program Overview
Under the direction of the City Council as a whole, the City Manager carries out the City’s goals and objectives and ensures the effective and efficient operation of the City. City departments report to the City Manager, who oversees all operations of the city. The City Manager’s Office advises the City Council on policy matters and assess the overall needs of the City, promotes public relations and strong partnerships with stakeholders in the community such as public safety providers, the school and college districts, businesses and nonprofits organizations. The City Manager’s Office Budget is made up of five Divisions.
The Administration Division supports the City Manager’s Office by establishing departmental policies and procedures, managing the City’s legislative affairs and the City Work Program, and facilitating the goal-setting and prioritization process. This division also oversees the budget and purchasing process for the entire department as well as oversees the front lobby.
Service Objectives
Support effective City operations that meet performance and budget goals.
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.
Facilitate the adoption and successful accomplishment of the City Work Program.
Research and respond promptly to concerns regarding City operations.
Prioritize public engagement and transparency through regular outreach and accessible information.
Prepare timely 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 and analyze all state legislative activity and track and identify important legislation impacting Cupertino.
Ensure effective oversight of the City Clerk's Office, Legislative Affairs, Economic Development, Emergency Management, Human Resources, and Communications Divisions.
Foster strong partnerships with Cupertino's public safety providers (Santa Clara County Sheriff's Office and Santa Clara County Fire Department), as well as with the elementary, high school and college districts.
Proposed Budget
It is recommended that City Council approve a budget of $1,990,545 for the City Manager's Office program.
This amount represents a decrease of $142,814 (6.7%) from the FY 2025-26 Adopted Budget.
Administration
City Manager
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 182
This decrease is due primarily to the removal of the Assistant City Manager position. Additionally, there are no new Special Projects for this program for FY 2026-27. These decreases are slightly offset by increases in contract services due to the bi-annual community survey and the state lobbyist contract.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $1,304,537 $1,122,256 $1,303,448 1,129,109 Employee Benefits $555,668 $957,376 $517,857 441,112
Materials and Supplies $38,198 $30,797 $109,641 107,032 Contract Services $215,602 $176,439 $81,920 165,528
Special Projects $38,415 – $200,000 –
Cost Allocation – $102,413 $120,493 147,764
EXPENSES TOTAL $2,152,419 $2,389,281 $2,333,359 1,990,545 EXPENSES TOTAL $2,152,419 $2,389,281 $2,333,359 1,990,545 Revenues
Charges for Services $653,459 $1,552,614 $1,461,511 1,370,726 Miscellaneous Revenue $0 $556 – –
REVENUES TOTAL $653,459 $1,553,170 $1,461,511 1,370,726 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 FY2024 FY2025 FY2026 FY2027
allocation
EXEC ASST TO THE CITY COUNCIL 0.5 0.5 0.5 0.5
MANAGEMENT ANALYST 1 0 0 0
ADMINISTRATIVE ASSISTANT 0 1 1 1
DEPUTY CITY MANAGER 1 1 1 1
SENIOR MANAGEMENT ANALYST 1 1 1 1
CITY MANAGER 1 1 1 1
SPECIAL PROJECT EXECUTIVE 1 0 0 0
ASSISTANT CITY MANAGER 1 1 1 0
SR OFFICE ASSISTANT 0.4 1.1 0.7 1
RECEPTIONIST 0 0 1 1
ALLOCATION 6.9 6.6 7.2 6.5
Assistant City Manager position was eliminated and the duties were absorbed by the City Manager and Deputy City Manager. Senior Office Assistant was reallocated due to a reorganization of duties.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 183
Budget Unit 100-12-122 General Fund - City Manager - Sustainability Budget at a Glance
Total Revenues –
Total Expenditures –
Total 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.
Adopted Budget
There is no budget requested for this program.
Revenues and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $0 $0 – –
Employee Benefits $0 $0 – –
Materials and Supplies $0 – – –
Special Projects $0 – – –
Cost Allocation $0 – – –
EXPENSES TOTAL $0 $0 – –
EXPENSES TOTAL $0 $0 – –
Revenues
– – – – –
REVENUES TOTAL – – – –
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.
Administration
Sustainability
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 184
PositionTitle FY2024 FY2025 FY2026 FY2027
Allocation
MANAGEMENT ANALYST 0.7 0 0 0
ENVIRONMENTAL PROGRAMS ASSISTANT 0.35 0 0 0
SUSTAINABILITY MANAGER 0.75 0 0 0
ALLOCATION 1.8 0 0 0
Proposed Budget Book FY 2026-2027 185
Budget Unit 100-12-126 General Fund - City Manager - Office of Communications Budget at a Glance
Total Revenues 402,005.00
Total Expenditures 518,066.00
Total FTE 1.85
Program Overview
The Communications Division ensures residents receive timely and important information through the City’s website, social media, newsletters, videos, digital marketing, graphics, and press releases. The Division supports citywide communications, serves as a liaison between departments and the community, and provides guidance on sharing information about City projects, programs, and events.
Service Objectives
Serve as the primary communications link between the City of Cupertino and residents Deliver timely and accurate information to the community through various forms of media including print, online, and video
Build community pride and positive brand recognition with the City among residents Increase civic interest and participation in City services, initiatives, and activities Support the goals and initiatives of the City Council and all departments by disseminating clear messaging that aligns with organizational priorities
Assist in creating better internal and external communication Build and maintain relationships with local and regional media to help ensure accurate and proactive coverage of the City
Proposed Budget
It is recommended that City Council adopt a budget of $518,066 for the Office of Communications program.
This amount represents an increase of $36,653 (7.6%) from the FY2025-26 Adopted Budget.
This increase is due primarily to compensation and benefits and an increase in materials to provide necessary training and development. These increases were slightly offset by the reduction in contract services and the absence of new Special Projects for FY 2026-27.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Administration
Office of Communications
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 186
Expenses
Expenses
Employee Compensation $202,101 $270,342 $292,233 322,915 Employee Benefits $115,303 $207,898 $115,623 124,132
Materials and Supplies $46,977 $30,715 $22,637 28,963
Contract Services $53,737 $68,775 $10,320 –
Special Projects – – $5,000 –
Cost Allocation – $32,211 $35,600 42,056
EXPENSES TOTAL $418,119 $609,941 $481,413 518,066
EXPENSES TOTAL $418,119 $609,941 $481,413 518,066
Revenues
Charges for Services – $545,188 $335,733 402,005
REVENUES TOTAL – $545,188 $335,733 402,005
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 FY2024 FY2025 FY2026 FY2027
allocation
COMMUNITY OUTREACH SPECIALIST 0.9 0.9 0.9 0.95
SR OFFICE ASSISTANT 0.9 0.2 0.2 0
PUBLIC INFORMATION OFFICER 0.85 0 0 0
COMMS AND MARKETING COORDINATOR 0 0.85 0.85 0.9
ALLOCATION 2.65 1.95 1.95 1.85
Staff was reallocated to better reflect actual time spent in this program and due to a reorganization of duties.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 187
Budget Unit 100-12-305 General Fund - City Manager - Multimedia Budget at a Glance
Total Revenues –
Total Expenditures –
Total 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.
Adopted Budget
There is no budget requested for this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $0 – – –
Employee Benefits $0 – – –
EXPENSES TOTAL $0 – – –
EXPENSES TOTAL $0 – – –
Revenues
Charges for Services $167,188 – – –
REVENUES TOTAL $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.
AD: Multimedia
position_title FY2024 FY2025 FY2026 FY2027
Administration
Multimedia
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 188
position_title FY2024 FY2025 FY2026 FY2027
allocation
MULTIMEDIA COMMUNICATIONS SPEC 0 0 0 0
ALLOCATION 0 0 0 0
Proposed Budget Book FY 2026-2027 189
Budget Unit 100-12-307 General Fund - City Manager - Public Access Support Budget at a Glance
Total Revenues –
Total Expenditures –
Total 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.
Adopted Budget
There is no budget requested for this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Contract Services $9,450 – – –
Cost Allocation $2,169 – – –
EXPENSES TOTAL $11,619 – – –
EXPENSES TOTAL $11,619 – – –
Revenues
– – – – –
REVENUES TOTAL – – – –
Staffing
There is no staffing associated with this program.
Administration
Public Access Support
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 190
Budget Unit 100-12-632 General Fund - City Manager - Community Outreach and Neighborhood Watch Budget at a Glance
Total Revenues –
Total Expenditures –
Total FTE –
Program Overview
Staffing and budget expenditures were consolidated under Budget Unit 100-12-633, since the Office of Emergency Management oversees this program. 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
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
There is no budget requested for this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $103,733 $0 – –
Employee Benefits $44,700 $0 – –
Materials and Supplies $5,001 $0 – –
Administration
Community Outreach and Neighborhood Watch
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 191
Special Projects $7,623 $0 – –
Cost Allocation $78,117 $0 – –
EXPENSES TOTAL $239,174 $0 – –
EXPENSES TOTAL $239,174 $0 – –
Revenues
Intergovernmental $56,953 $0 – –
REVENUES TOTAL $56,953 $0 – –
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.
AD: Community Outreach....
position_title FY2024 FY2025 FY2026 FY2027
allocation
EMERGENCY SERVICES COORDINATOR (COMMUNITY RELATIONS
COORDINATOR) 1 1 0 0
ALLOCATION 1 1 0 0
A transfer of 1.0 position in the Community Outreach and Neighborhood Watch division has been moved from Parks and Recreation Department (100-65-632) to this program in the City Manager's Office.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 192
Budget Unit 100-12-633 General Fund - City Manager - Office of Emergency Management Budget at a Glance
Total Revenues 160,240.00
Total Expenditures 929,395.00
Total FTE 2.95
Program Overview
The Emergency Management Division’s mission is to coordinate effective disaster response and recovery efforts. Through planning, training, and exercises, the division prepares and equips response personnel and community members to minimize the risks to life safety, property, and the environment. This Division also includes Community Outreach and Neighborhood Watch, which fosters communication and cultural understanding by recruiting and supporting neighborhood volunteers and promoting active community engagement.
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.
Prepare, test, and update 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), and state law.
Support and engage Citizen Corps including Block Leaders, Neighborhood Watch, Community Emergency Response Team (CERT), Cupertino Amateur Radio Emergency Service (CARES), and Medical Reserve Corps (MRC).
Coordinate and deliver training of City staff in personal preparedness, SEMS/NIMS, and EOC functions.
Operate emergency alert and notification systems including AlertSCC, Radio Cupertino, and digital platforms.
Conduct emergency exercises and after-action reviews to evaluate and improve readiness.
Lead community outreach and public education on emergency preparedness.
Maintain effective partnerships with local, state, and national emergency management organizations and/or allied disaster preparedness and response agencies.
Administer the contract for Law Enforcement Services with the Santa Clara County Sheriff's Office.
Serve as liaison to the Santa Clara County Fire Department.
Aid in the development, implementation, and coordination of City programs and community-building activities designed to bring Cupertino neighborhoods together, with an emphasis on emergency preparedness.
Coordinate and disseminate relevant and important information to Cupertino residents through regular meetings and communications that build relationships and strengthen neighborhoods, and gather feedback and concerns.
Administration
Office of Emergency Management
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 193
Facilitate collaboration with Emergency Preparedness and Neighborhood Watch programs.
Train residents to connect and organize neighbors and neighborhoods.
Coordinate Neighborhood Watch orientations 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 adopt a budget of $929,395 for the Office of Emergency Management program. This amount represents an increase of $929,395 (100%) from the FY 2025-26 Adopted Budget.
This increase is due primarily to the transfer of the Office of Emergency Management from the Parks and Recreation department. Additionally, Community Outreach and Neighborhood Watch was absorbed into this program, which includes the transfer of one Community Relations Coordinator.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $324,386 $0 – 492,107
Employee Benefits $148,831 $0 – 202,701
Materials and Supplies $17,096 $0 – 40,474
Contract Services – $0 – 33,487
Special Projects $4,129 $0 – –
Cost Allocation $205,936 $0 – 160,626
EXPENSES TOTAL $700,378 $0 – 929,395
EXPENSES TOTAL $700,378 $0 – 929,395
Revenues
Intergovernmental – $0 – 6,250
Charges for Services $15,629 $0 – 153,990
REVENUES TOTAL $15,629 $0 – 160,240
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.
AD: Office of Emergency Management
position_title FY2024 FY2025 FY2026 FY2027
allocation
MANAGEMENT ANALYST 1 1 0 0
EMERGENCY SERVICES COORDINATOR (COMMUNITY RELATIONS
COORDINATOR) 0 0 0 1
EMERGENCY SERVICES COORDINATOR 0.95 0 0 0.95
ASSIST TO THE CITY MNGR 0 0.95 0 1
ALLOCATION 1.95 1.95 0 2.95
A transfer of 1.95 positions in the Office of Emergency Management program have been moved from Parks & Recreation to the City Manager's Office as part of departmental reorganization. Additionally, one Community
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 194
Relations Coordinator has been moved from the Community Outreach and Neighborhood Watch program as part of a consolidation within the Office of Emergency Management.
Proposed Budget Book FY 2026-2027 195
Budget Unit 100-12-705 General Fund - City Manager - Economic Development Budget at a Glance
Total Revenues –
Total Expenditures 601,291.00
Total FTE 1.00
Program Overview
The Economic Development Division oversees the development and implementation of policies and programs that support Cupertino’s tax base and economy by delivering effective services to local businesses and fostering a business-friendly environment.
Service Objectives
Provide assistance and support to businesses that contribute to Cupertino’s tax base and economy.
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.
Support Cupertino’s economic development efforts by engaging with regional organizations such as the Silicon Valley Economic Development Alliance (SVEDA), Small Business Development Center (SBDC), NOVAworks, Service Corps of Retired Executives (SCORE), and the International Council of Shopping Centers (ICSC).
Track trends, data, studies to promote economic development within the city. Maintain relationships with commercial property owners, real estate brokers, tenant representatives, and other industry professionals to support leasing of retail and office spaces.
Proposed Budget
It is recommended that City Council adopt a budget of $601,291 for the Economic Development program. This amount represents an decrease of $334,033 (-35.7%) from the FY 2025-26 Adopted Budget.
This decrease is due primarily to the absence of new Special Projects for FY 2026-27.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Administration
Economic Development
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 196
Expenses
Expenses
Employee Compensation $143,794 $0 $203,791 222,890
Employee Benefits $69,813 $0 $92,632 99,292
Materials and Supplies $9,689 $0 $34,410 16,001
Contract Services $28,549 $0 $71,250 71,250
Special Projects $174,574 – $350,000 –
Cost Allocation $49,578 $0 $183,241 191,858
EXPENSES TOTAL $475,997 $0 $935,324 601,291
EXPENSES TOTAL $475,997 $0 $935,324 601,291
Revenues
– – – – –
REVENUES TOTAL – – – –
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.
PositionTitle FY2024 FY2025 FY2026 FY2027
Allocation
ECONOMIC DEVELOPMENT MANAGER 1 1 1 1
ALLOCATION 1 1 1 1
Staffing is unchanged from the previous fiscal year.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 197
Budget Unit 100-14-123 General Fund - City Manager Discretionary - City Manager Contingency Budget at a Glance
Total Revenues –
Total Expenditures 50,000.00
Total 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 were reduced to 1.25%, and the City Manager Contingency was educed to $50,000. These measures were 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, the contingency fund was utilized for $20,543.96, with key expenses related to employee appreciation events and homeless encampment clean-up. In Fiscal Year 2026 to date, the contingency fund was utilized for $9,850, with key expenses related to environmental site assessments and title/appraisal documents required for the sale of property at 10480 Finch Ave.
Program contingency budgets may be used by departments to cover unanticipated expenses at their discretion. However, 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 adopt a budget of $50,000 for the City Manager Contingency program.
This budget is unchanged from the prior year.
Administration
City Manager Contingency
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 198
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Contingencies $5,732 $20,544 $50,000 50,000
EXPENSES TOTAL $5,732 $20,544 $50,000 50,000
EXPENSES TOTAL $5,732 $20,544 $50,000 50,000
Revenues
– – – – –
REVENUES TOTAL – – – –
Staffing
There is no staffing associated with this program.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 199
Budget Unit 100-16-412 General Fund - Human Resources - Human Resources Budget at a Glance
AD: Human Resources
Total Revenues 1,183,437.00
Total Expenditures 1,615,751.00
Total FTE 4.80
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 adopt a budget of $1,615,751 for the Human Resources program. This amount represents an increase of $1,615,751 (100.0%) from the FY 2025-26 Adopted Budget.
This is due to the reorganization of Human Resources to the Administration Department.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Administration
Human Resources
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 200
AD: Human Resources
Expenses
Expenses
Employee Compensation – – – 791,161
Employee Benefits – – – 353,559
Materials and Supplies – – – 103,100
Contract Services – – – 258,814
Cost Allocation – – – 109,117
EXPENSES TOTAL – – – 1,615,751
EXPENSES TOTAL – – – 1,615,751
Revenues
Charges for Services – – – 1,183,437
REVENUES TOTAL – – – 1,183,437
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.
AD: Human Resources
position_title FY2024 FY2025 FY2026 FY2027
allocation
HUMAN RESOURCES ANALYST II 0 0 0 1.8
HUMAN RESOURCES MANAGER 0 0 0 1
HUMAN RESOURCES TECH 0 0 0 2
ALLOCATION 0 0 0 4.8
A transfer of 4.8 staff positions in the Human Resources program have been moved under the City Manager's Office.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 201
Budget Unit 620-16-418 Workers' Compensation - Human Resources - Workers Compensation Insurance Budget at a Glance
AD: Workers Compensation Insurance
Total Revenues 470,267.00
Total Expenditures 527,858.00
Total FTE 0.20
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 adopt a budget of $527,858 for the Workers Compensation Insurance program. This amount represents an increase of $527,858 (100.0%) from the FY 2025-26 Adopted Budget.
This is due to the reorganization of Human Resources to the Administration Department.
Revenue and Expenditures
The following table details revenues and expenditures 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.
AD: Workers Compensation Insurance
Expenses
Expenses
Employee Compensation – – – 33,799
Employee Benefits – – – 13,698
Administration
Workers Compensation Insurance
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 202
Contract Services – – – 425,795
Cost Allocation – – – 54,566
EXPENSES TOTAL – – – 527,858
EXPENSES TOTAL – – – 527,858
Revenues
Other Financing Sources – – – 470,267
REVENUES TOTAL – – – 470,267
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.
AD: Workers Compensation Insurance
position_title FY2024 FY2025 FY2026 FY2027
allocation
HUMAN RESOURCES ANALYST II 0 0 0 0.2
ALLOCATION 0 0 0 0.2
A transfer of 0.2 staff positions in the Workers Compensation Insurance program have been moved under the City Manager's Office.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 203
Budget Unit 641-16-419 Compensated Absence/LTD - Human Resources - Long Term Disability Budget at a Glance
AD: Long Term Disability
Total Revenues –
Total Expenditures 134,733.00
Total 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 adopt a budget of $134,733 for the Long Term Disability program. This amount represents an increase of $134,733 (100.0%) from the FY 2025-26 Adopted Budget.
This is due to the reorganization of Human Resources to the Administration Department.
Revenue and Expenditures
The following table details revenues and expenditures 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.
AD: Long Term Disability
Expenses
Expenses
Contract Services – – – 133,900
Cost Allocation – – – 833
EXPENSES TOTAL – – – 134,733
EXPENSES TOTAL – – – 134,733
Revenues
– – – – –
REVENUES TOTAL – – – –
Administration
Long Term Disability
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 204
There is no staffing associated with this program.
Proposed Budget Book FY 2026-2027 205
Budget Unit 641-16-420 Compensated Absence/LTD - Human Resources - Compensated Absences Budget at a Glance
AD: Compensated Absences
Total Revenues 1,052,000.00
Total Expenditures 727,212.00
Total 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 adopt a budget of $727,212 for the Compensated Absences program.
This amount represents an increase of $727,212 (100.0%) from the FY 2025-26 Adopted Budget.
This is due to the reorganization of Human Resources to the Administration Department.
Revenue and Expenditures
The following table details revenues and expenditures 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.
AD: Compensated Absences
Expenses
Expenses
Contract Services – – – 716,000
Cost Allocation – – – 11,212
EXPENSES TOTAL – – – 727,212
EXPENSES TOTAL – – – 727,212
Revenues
Transfers In – – – 1,052,000
REVENUES TOTAL – – – 1,052,000
There is no staffing associated with this program.
Administration
Compensated Absences
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 206
Proposed Budget Book FY 2026-2027 207
Budget Unit 642-16-414 Retiree Medical - Human Resources - Retiree Benefits Budget at a Glance
AD: Retiree Benefits
Total Revenues 1,617,000.00
Total Expenditures 1,638,052.00
Total 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 adopt a budget of $1,638,052 for the Retiree Benefits program. This amount represents an increase of $1,638,052 (100.0%) from the FY 2025-26 Adopted Budget.
This is due to the reorganization of Human Resources Division to the Administration Department.
Revenue and Expenditures
The following table details revenues and expenditures 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.
AD: Retiree Benefits
Expenses
Expenses
Employee Benefits – – – 1,623,345
Cost Allocation – – – 14,707
EXPENSES TOTAL – – – 1,638,052
EXPENSES TOTAL – – – 1,638,052
Revenues
Transfers In – – – 1,617,000
Administration
Retiree Benefits
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 208
REVENUES TOTAL – – – 1,617,000
Staffing
There is no staffing associated with this program
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 209
Programs
Human Resources
Retiree Benefits
Insurance Administration
Workers Compensation Insurance
Long Term Disability
Compensated Absences
Division 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 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.
Budget at a Glance
AD: Human Resources Division
Total Revenues 4,322,704.00
Total Expenditures 4,643,606.00
Total FTE 5.00
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.
Revenue and Expenditures
Administration
Human Resources: Division Summary
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 210
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation – – – 824,960
Employee Benefits – – – 1,990,602
Materials and Supplies – – – 103,100
Contract Services – – – 1,534,509
Cost Allocation – – – 190,435
EXPENSES TOTAL – – – 4,643,606
EXPENSES TOTAL – – – 4,643,606
Revenues
Transfers In – – – 2,669,000
Charges for Services – – – 1,183,437
Other Financing Sources – – – 470,267
REVENUES TOTAL – – – 4,322,704
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.
AD: Human Resources Division
position_title FY2024 FY2025 FY2026 FY2027
allocation
HUMAN RESOURCES ANALYST II 0 0 0 2
HUMAN RESOURCES MANAGER 0 0 0 1
HUMAN RESOURCES TECH 0 0 0 2
ALLOCATION 0 0 0 5
In FY2025-2026, the Human Resources Division was moved to Administration from the Administrative Services Department.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 211
Budget Units
Expenses
Law Enforcement 26,188,498
EXPENSES TOTAL 26,188,498
Budget at a glance
Total Revenues 2,277,820.00
Total Expenditures 26,188,498.00
Total FTE –
Organization
Captain Neil Valenzuela, Office of the Sheriff
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 Measures FY24
Jul-Jun
FY25
Jul-Jun
FY26
Jul-Dec
Law Enforcement
Department Overview
PROPOSED
FY2027
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 212
Percent of calls that met
response time standards for:
Priority 1 Calls N/A N/A 25%
Priority 2 Calls N/A N/A 69%
Priority 3 Calls N/A N/A 80%
Percent of graduates from the
Teen Academy
Teen & Citizen
Academy N/A N/A 100%
Proposed Budget
It is recommended that City Council approve a budget of $26,188,498 for the Law Enforcement program. This amount represents an increase of $6,645,810 (34%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to the annual negotiated increase in the law enforcement contract.
Proposed Expenditures by Division
Data Updated: May 05, 2026, 12:06 AM View Report
Total Proposed Budget (FY2027)
$26,188,498
LLaaww EEnnffoorrcceemmeenntt::
$$2266,,118888,,449988 ((110000%%))
Law Enforcement:
$26,188,498 (100%)
Law Enforcement
Department Expenditure History
Data Updated: May 05, 2026, 12:06 AM View Report
Expenses
Actual - FY2024 Actual - FY2025 Adopted - FY2026 Proposed - FY2027 $0
$5M
$10M
$15M
$20M
$25M
Revenues and Expenditures
Proposed Budget Book FY 2026-2027 213
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.
Expenses
Expenses
Materials and Supplies $457 $479 $450 480
Contract Services $16,059,209 $16,961,140 $19,353,570 25,844,796 Special Projects – $62,250 – –
Cost Allocation $144,684 $363,102 $188,668 343,222
EXPENSES TOTAL $16,204,350 $17,386,971 $19,542,688 26,188,498 EXPENSES TOTAL $16,204,350 $17,386,971 $19,542,688 26,188,498 Revenues
Fines and Forfeitures $155,102 $135,968 $185,760 185,760 Intergovernmental $186,159 $194,664 $166,249 166,249
Charges for Services $304,442 $64,391 $371,200 371,200
Miscellaneous Revenue $1,006,552 $1,094,927 $1,216,303 1,554,611 REVENUES TOTAL $1,652,255 $1,489,949 $1,939,512 2,277,820 Staffing
There is no staffing associated with this department.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 214
Budget Unit 100-20-200 General Fund - Law Enforcement - Law Enforcement Budget at a Glance
Total Revenues 2,277,820.00
Total Expenditures 26,188,498.00
Total 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 $1,160,732 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 $26,188,498 for the Law Enforcement program. This amount represents an increase of $6,645,810 (34%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to the annual negotiated increase in the law enforcement contract.
Revenue 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.
Law Enforcement
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 215
Expenses
Expenses
Materials and Supplies $457 $479 $450 480
Contract Services $16,059,209 $16,961,140 $19,353,570 25,844,796 Special Projects – $62,250 – –
Cost Allocation $144,684 $363,102 $188,668 343,222
EXPENSES TOTAL $16,204,350 $17,386,971 $19,542,688 26,188,498 EXPENSES TOTAL $16,204,350 $17,386,971 $19,542,688 26,188,498 Revenues
Fines and Forfeitures $155,102 $135,968 $185,760 185,760 Intergovernmental $186,159 $194,664 $166,249 166,249
Charges for Services $304,442 $64,391 $371,200 371,200
Miscellaneous Revenue $1,006,552 $1,094,927 $1,216,303 1,554,611 REVENUES TOTAL $1,652,255 $1,489,949 $1,939,512 2,277,820 Staffing
There is no staffing associated with this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 216
Budget Unit 100-20-201 General Fund - Law Enforcement - Interoperability Project Budget at a Glance
Total Revenues –
Total Expenditures –
Total 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 fifteen 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.
Revenue 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.
Expenses
– – – – –
EXPENSES TOTAL – – – –
Revenues
– – – – –
REVENUES TOTAL – – – –
Staffing
Law Enforcement
Interoperability Project
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 217
There is no staffing associated with this program
City of Cupertino FY 2026-27 Proposed Budget
Proposed Budget Book FY 2026-2027 218
Department Overview
Divisions/Programs
Innovation & Technology Administration
Video
Applications
Infrastructure
GIS
City of Cupertino FY 2026-27 Proposed Budget
Innovation & Technology
Department Home page
Proposed Budget Book FY 2026-2027 219
Budget Unit 100-31-305 General Fund - Video - Video
Budget at a Glance
Total Revenues 108,337.00
Total Expenditures 1,417,554.00
Total FTE 3.35
Program Overview
The Video 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 $1,417,554 for the Video program. This represents an increase of $284,561 (25%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to the Special Project budget requests for new PEG funded video production equipment, increase in compensation and benefits to account staff time being reallocated to better reflect actual time spent in this program, as well as the Materials budget requests below.
Innovation & Technology
Video
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 220
Proposal Appropriation
Ki Pro Ultra $6,500
Lobby Monitor Replacements $7,500
Total $14,000
The increase is also due to the Contract Services budget request outlined below.
Proposal Appropriation
Tally System $12,000
Total $12,000
This division is requesting a total of $26,000 for Materials and Contract Services budget requests.
Special Projects
Special Projects reflect new PEG funded video production equipment purchases. The chart below outlines the proposed Special Projects budget requests.
Proposal Appropriation
Tiger Serve Metadata Controller $17,000
Panasonic PTZ Cameras and Controller $115,000
Total $127,000
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $514,189 $543,384 $573,733 633,441 Employee Benefits $203,771 $426,953 $224,471 246,046
Materials and Supplies $20,270 $36,090 $46,200 69,384
Contract Services $43,071 $144,601 $230,660 260,528
Special Projects $40,242 $197,727 – 132,000
Cost Allocation – $52,517 $57,929 76,155
EXPENSES TOTAL $821,543 $1,401,273 $1,132,993 1,417,554 EXPENSES TOTAL $821,543 $1,401,273 $1,132,993 1,417,554 Revenues
Charges for Services $10,829 $85,565 $85,163 108,337
REVENUES TOTAL $10,829 $85,565 $85,163 108,337
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.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 221
position_title FY2024 FY2025 FY2026 FY2027
allocation
CHIEF TECHNOLOGY OFFICER 0 0.13 0.25 0.25
MULTIMEDIA COMMUNICATIONS SPEC 3 3 3 3
MANAGEMENT ANALYST 0 0 0 0.1
ALLOCATION 3 3.13 3.25 3.35
Staff time is being reallocated to better reflect actual time spent in this program.
City of Cupertino FY 2026-27 Proposed Budget
Proposed Budget Book FY 2026-2027 222
Budget Unit 100-32-308 General Fund - Applications - Applications Budget at a Glance
Total Revenues 1,807,503.00
Total Expenditures 2,641,052.00
Total FTE 3.53
Program Overview
The Applications Division manages and supports the City’s enterprise software systems that power critical business operations across departments. The Division oversees the full lifecycle of key platforms — including Financial ERP, Land-Use Management, Recreation Management, procurement, records retention, CRM, and customer-facing portals — ensuring they are effectively implemented, maintained, and aligned with organizational needs.
The team also manages the City’s website and Intranet, and supports digital services such as permitting, licensing, inspections, and enforcement. In addition, the Division develops custom applications, such as bid management and residential parking permits, while ensuring strong data governance and seamless 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 and departments to ensure enterprise application platforms are regularly updated, meet functional requirements, deliver value to stakeholders, and align with the City’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.
Ensure all public-facing applications comply with ADA and WCAG standards through accessible design, testing, vendor coordination, and ongoing monitoring.
Proposed Budget
It is recommended that City Council approve a budget of $2,641,052 for the Applications division. This represents an increase of $311,392 (13.3%) from the FY 2025-26 Adopted Budget.
The increase is due to the rise in Employee Compensation and Benefits.
Innovation & Technology
Applications
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 223
The increase is also primarily due to Materials reflecting the replacement ERP maintenance cost, new ongoing budgets for Council approved FY26 requests.
The chart below outlines the proposed budget requests:
Proposal Appropriation
DocAccess $15,000
OpenCounter $37,000
Total $52,000
The division is requesting a total of $52,000 in proposed funding.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $687,647 $887,909 $840,993 944,859 Employee Benefits $232,209 $526,742 $246,704 266,255
Materials and Supplies $887,573 $1,027,935 $1,049,696 1,219,080 Contract Services $111,731 $91,921 $118,329 130,611
Special Projects $158,825 $20,800 – –
Cost Allocation – $50,381 $73,938 80,247
EXPENSES TOTAL $2,077,985 $2,605,689 $2,329,660 2,641,052 EXPENSES TOTAL $2,077,985 $2,605,689 $2,329,660 2,641,052 Revenues
Intergovernmental $24,480 $35,520 – –
Charges for Services $1,539,005 $1,288,403 $1,504,856 1,504,503 Miscellaneous Revenue – $390,950 $300,000 303,000
REVENUES TOTAL $1,563,485 $1,714,873 $1,804,856 1,807,503 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 FY2024 FY2025 FY2026 FY2027
allocation
MANAGEMENT ANALYST 0.3 0.3 0.3 0.3
CHIEF TECHNOLOGY OFFICER 0.2 0.75 0.23 0.23
INNOVATION & TECHNOLOGY MGR APPS 1 0 1 1
BUSINESS SYSTEMS ANALYST 2 2 2 2
INTERN III 0 0 0 0
ALLOCATION 3.5 3.05 3.53 3.53
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 224
City of Cupertino FY 2026-27 Proposed Budget
Proposed Budget Book FY 2026-2027 225
Budget Unit 610-30-300 Information Technology - I&T Administration - Innovation & Technology Administration Budget at a Glance
Total Revenues 70,259.00
Total Expenditures 214,251.00
Total FTE 0.13
Program Overview
The Innovation & Technology Department Administration Division is responsible for the strategic planning, governance, policy setting, 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 $214,251 for the Innovation & Technology Administration program. This represents a decrease of $9,980 (-4.5%) from the FY 2025-26 Adopted Budget.
This budget is relatively unchanged from the prior fiscal year.
Revenue and Expenditures
The following table details revenues and expenditures. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Proposed Budget for the current fiscal year.
Expenses
Innovation & Technology
Innovation & Technology Administration
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 226
Expenses
Employee Compensation $148,116 $51,526 $39,787 30,115
Employee Benefits $72,678 $12,051 $16,263 12,644
Materials and Supplies $2,918 $4,491 $9,657 13,664
Contract Services $757 $348 $6,914 7,564
Special Projects $67,380 – – –
Cost Allocation – $4,130 $151,610 150,264
Transfers Out $60,000 – – –
EXPENSES TOTAL $351,849 $72,546 $224,231 214,251
EXPENSES TOTAL $351,849 $72,546 $224,231 214,251
Revenues
Transfers In – $22,479 – –
Charges for Services – $191,672 $89,599 70,259
REVENUES TOTAL – $214,151 $89,599 70,259
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 FY2024 FY2025 FY2026 FY2027
allocation
MANAGEMENT ANALYST 0.15 0.15 0.15 0.05
CHIEF TECHNOLOGY OFFICER 0.38 0.1 0.08 0.08
ALLOCATION 0.53 0.25 0.23 0.13
Staff time is being reallocated to better reflect actual time spent in this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 227
Budget Unit 610-34-310 Information Technology - Infrastructure - Infrastructure Budget at a Glance
Total Revenues 3,316,916.00
Total Expenditures 3,309,381.00
Total FTE 4.52
Program Overview
The I&T Infrastructure division is responsible for planning, developing, implementing, and maintaining the core technological systems that support the organization's daily operations and long-term goals. This division manages both physical and virtual components, including servers, data centers, networks, cloud platforms, multi-function printers, 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, conference room audio-visual systems, 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, standards, and compliance in technology adoption, security frameworks (NIST), payment processing (PCI), and State and Local Government code.
Service Objectives
Provide and continuously improve helpdesk support as this function is often the face of IT that staff interacts with on a daily basis.
Deliver efficient, timely, 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, conference room audio-visual equipment, 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
Innovation & Technology
Infrastructure
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 228
It is recommended that City Council approve a Budget of $3,309,381 for the Infrastructure program. This represents an increase of $452,868 (15.8%) from the FY 2025-26 Adopted Budget.
Increases in Materials reflect higher costs associated with ongoing technology hardware refresh cycles, including the replacement of aging equipment, rising market prices for components, and the need to maintain reliable and up-to-date systems to support operations.
Contract Services reflect an enhanced initiative for automated network penetration testing, increased consultant support to cover scheduled staff extended leaves, and ongoing funding for Council-approved FY26 requests, as well as the proposed Contract Services budget requests outlined below.
Proposal Appropriation
Regional VCISO $45,000
Multi-Function Printers* $150,000
Network Access Control and WiFi refresh* $150,000
Total $345,000
This division is requesting a total of $45,000 in proposed funding for Contract Services. *Staff is working to resolve this issue with the system as it is included in the special project category when it should not be.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $709,991 $662,558 $832,853 922,304 Employee Benefits $424,688 $216,936 $306,618 346,070
Materials and Supplies $902,821 $565,821 $703,404 891,951 Contract Services $181,364 $259,582 $248,840 351,751
Special Projects $190,772 – $225,000 300,000
Cost Allocation – $71,028 $253,837 295,800
Transfers Out $16,000 – – –
Other Financing Uses $115,426 $84,934 $285,961 201,505
EXPENSES TOTAL $2,541,061 $1,860,859 $2,856,513 3,309,381 EXPENSES TOTAL $2,541,061 $1,860,859 $2,856,513 3,309,381 Revenues
Transfers In $910,600 $206,085 – –
Charges for Services $1,591,722 $1,745,011 $2,532,269 3,312,916 Miscellaneous Revenue $5,666 $2,575 – 4,000
REVENUES TOTAL $2,507,988 $1,953,671 $2,532,269 3,316,916 Staffing
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 229
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 FY2024 FY2025 FY2026 FY2027
allocation
MANAGEMENT ANALYST 0.3 0.3 0.3 0.3
NETWORK SPECIALIST 2 2 2 2
CHIEF TECHNOLOGY OFFICER 0.2 0 0.22 0.22
INFO TECHNOLOGY MANAGER 1 1 1 1
BUSINESS SYSTEMS ANALYST 1 1 1 1
ALLOCATION 4.5 4.3 4.52 4.52
There are no changes to the current level of staffing.
City of Cupertino FY 2026-27 Proposed Budget
Proposed Budget Book FY 2026-2027 230
Budget Unit 610-35-986 Information Technology - GIS - GIS Budget at a Glance
Total Revenues 1,373,222.00
Total Expenditures 1,434,897.00
Total FTE 2.40
Program Overview
The Geographic Information Systems (GIS) Program serves as Cupertino’s centralized hub for capturing, managing, analyzing, and visualizing enterprise data across the organization. The program oversees and administers critical systems including the City’s asset management platform, public service request system, and enterprise data warehouse. In addition, GIS manages key collaboration tools such as Microsoft Teams and Planner, and supports research and development initiatives related to artificial intelligence and advanced analytics.
Through the development of interactive maps, dashboards, reports, and data visualizations, the GIS Program empowers staff, residents, businesses, and the development community to access, interpret, and understand essential City information. By transforming complex data into clear, actionable insights, the program strengthens data-driven decision-making, operational efficiency, transparency, and collaborative problemsolving throughout the organization and the broader community.
Service Objectives
Coordinate and manage the City’s data warehouse to centralize enterprise data, ensure consistency, enhance performance, support historical analysis, and enable data-driven decision-making through integration with analytics tools.
Analyze City data to identify patterns and trends, presenting findings through maps, reports, dashboards, and charts to support informed decision-making.
Provide guidance and training to staff and residents to effectively use data tools for analysis, problemsolving, and decision-making.
Manage and maintain core platforms including GIS, asset management, public service requests, the data warehouse, intranet hub, collaboration tools, and digital workflows.
Support collaboration by integrating data and tools across departments, agencies, and stakeholders to enhance coordination and information sharing.
Support emergency response and recovery efforts with tools for damage assessment, incident mapping, resource tracking, and situational awareness to ensure timely, informed decision-making.
Research, evaluate, and implement artificial intelligence solutions and emerging technologies to enhance service delivery, operational efficiency, and data insights.
Proposed Budget
Innovation & Technology
GIS
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 231
It is recommended that the City Council approve a budget of $1,434,897 for the GIS program. This represents an increase of $131,425 (10%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to the rise in Employee Compensation resulting from a new classification of Senior Business Analyst. The new classification plays 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.
The increase is also due to Materials reflecting new ongoing budgets for Council approved FY26 requests.
The chart below outlines the proposed budget requests.
Proposal Appropriation
IchiPlan $10,000
Total $10,000
The division is requesting a total of $10,000 in proposed funding.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $723,005 $453,405 $489,000 544,792 Employee Benefits $399,042 $112,230 $187,108 190,607
Materials and Supplies $168,716 $124,615 $258,377 308,119 Contract Services $143,889 $269,560 $206,562 206,808
Special Projects $49,810 $123,690 – –
Cost Allocation – $52,859 $162,425 184,571
EXPENSES TOTAL $1,484,462 $1,136,359 $1,303,472 1,434,897 EXPENSES TOTAL $1,484,462 $1,136,359 $1,303,472 1,434,897 Revenues
Transfers In $127,084 – – –
Intergovernmental – $110,496 – –
Charges for Services $955,136 $1,424,495 $1,128,627 1,373,222 REVENUES TOTAL $1,082,220 $1,534,991 $1,128,627 1,373,222 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 FY2024 FY2025 FY2026 FY2027
allocation
MANAGEMENT ANALYST 1.2 1.2 1.2 1.2
GIS ANALYST 1 1 0 0
CHIEF TECHNOLOGY OFFICER 0.2 0 0.2 0.2
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 232
position_title FY2024 FY2025 FY2026 FY2027
GIS PROGRAM MANAGER 1 1 0 0
SENIOR BUSINESS SYSTEMS ANALYST 0 0 1 1
ALLOCATION 3.4 3.2 2.4 2.4
There are no changes to the current level of staffing.
City of Cupertino FY 2026-27 Proposed Budget
Proposed Budget Book FY 2026-2027 233
Budget Units
Expenses
Administrative Services 460,043
Finance 3,805,172
EXPENSES TOTAL 4,265,215
Budget at a glance
Total Revenues 3,105,736.00
Total Expenditures 4,265,215.00
Total FTE 13.40
Organization
Jonathan Orozco, Acting Director of Administrative Services Administrative Services
Department Overview
PROPOSED
FY2027
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 234
Organizational chart showing Director of Administrative Services/Treasurer at the top. Reporting to this role are Budget Manager, Finance Manager/Deputy Treasurer, Purchasing Manager, Senior Management Analyst (2), and Management Analyst (2) Under Finance Manager/Deputy Treasurer are Senior Accountant, then Senior Management Analyst P/T and Accountant II (2), with Accounting Technician and Account Clerk II (2) beneath them.
Notable Accomplishments
Government Finance Officers Association (GFOA) – GFOA awarded the City of Cupertino the GFOA Distinguished Budget Presentation Award for FY 2025-26.
California Municipal Finance Officers Association (CSMFO) – CSMFO awarded the City of Cupertino the CSMFO Operating Budget Excellence Award for FY 2025-26.
Purchasing support: Partnered with Innovation & Technology to develop application use manual for the City’s Business Opportunities website. Continue to meet monthly with department liaisons and contract administrators to communicate updates and information related to purchasing, contracting and finance related activities.
Purchasing policy-related: Revised Capital Asset policy to increase asset threshold and improve internal procedures. Developed new Inventory Policy to outline tracking of assets stored for use by staff. Created additional solicitation templates for informal purchases and qualifying on-call consultants.
Purchasing-related training: Developed and delivered training on (i) new procedures to address AB339, (ii) new Inventory Policy, and (iii) contract development best practices.
Annual Comprehensive Financial Report (ACFR) - Successfully completed the ACFR for the fiscal year ended June 30, 2025, in November 2025, significantly ahead of prior reporting timelines for two consecutive years and presented it to City Council in December 2025, demonstrating the City’s commitment to transparency, accountability, and sound financial management. The City received an unmodified (clean) audit opinion, the highest level of assurance, indicating that the financial statements are fairly presented in accordance with generally accepted accounting principles (GAAP).
Successfully and smoothly transitioned business license services to HDL in September 2025. This transition improved operational efficiency in renewals and applications, boosting revenue, and alleviating staffing shortages that had persisted since early 2025.
Revised the City Council Grant Policy to clarify responsibility and promote efficiency in pursuit of grant opportunities.
Proposed Budget Book FY 2026-2027 235
Successfully collaborated interdepartmentally to submit funding proposals for regional, state and federal resources that further council goals and city projects.
Popular Annual Financial Report (PAFR) – successfully completed the City’s first-ever PAFR for the year ended June 30, 2025, that translates complex financial data in the ACFR into a short and accessible visualized report for the public. This report is presented in accordance with generally accepted accounting principles (GAAP) and supports the City’s transparency initiatives.
Selected a new Enterprise Resource Planning solution that will drive efficiencies in our finance management and human resource processes, reporting and information access while adding new tools that expand functionality.
Developing the Adopted Budget Book for Fiscal Year 2025-2026 using OpenGov, collaborating with an OpenGov budget ambassador to learn more about the platform, troubleshooting issues, and will deliver the City’s digital Adopted budget book.
Successfully drafted and revised the Cash Flow Policy in connection with a cash flow model built in October 2025, which forecasts the City’s monthly cash allocation and management. Additionally, refined the Investment policy to ensure the safety of public funds and the optimization of returns for the City.
New Initiatives
Grant related support: Provide department collaboration and support during pre- and post-award grant processes including: developing administrative procedures that guide consistent processes, reporting and transparency; revising quarterly grant tracking to streamline data entry and enhance data visualization for staff and Council; identifying, researching and supporting departments in applying for new funding opportunities.
Begin implementation of a new Enterprise Resource Planning system that will require financial and human resource data conversion, development of new approval and work processes, integration with existing systems and management training for Administrative Services staff and application training for citywide staff.
The Fiscal Year 2026-2027 Proposed Budget document marks the first year that the City's budget is built and presented utilizing OpenGov stories. Several enhancements will be made to the online budget, including an interactive table of contents, inclusion of the CIP book, embedded financial policy documents, improved navigation for departments and divisions, added links to CIP dashboard and CWP dashboard, and added division summaries.
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
General Fund committed, assigned, and
unassigned fund balance as a % of budgeted
appropriations
122% 45% 101%
Credit Rating AA+ AA+ AA+
Actual revenue vs. budget (% below budget) 17% 20% 147% Actual expenditures (% below budget) 14% 14% 189%
Funding allocated to high priority services (Public
Works, Community Development, Law
Enforcement)
58% 66% 71%
Proposed Budget Book FY 2026-2027 236
Proposed Budget
It is recommended that City Council approve a budget of $4,265,215 for the Administrative Services department. This represents a decrease of $6.8 million (61.3%) from the FY 2025-26 Adopted Budget. The decrease is primarily due to the Human Resources Division being moved to Administration in FY 2025-2026.
In FY 2025-2026, the Human Resources Division was moved to Administration.
Proposed Expenditures by Division
Data Updated: May 05, 2026, 12:06 AM View Report
Total Proposed Budget (FY2027)
$4,265,215
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$$446600,,004433 ((1111%%))
Administrative Services:
$460,043 (11%)
FFiinnaannccee::
$$33,,880055,,117722 ((8899%%))
Finance:
$3,805,172 (89%)
Administrative Services
Finance
Department Expenditure History
Data Updated: May 05, 2026, 12:06 AM View Report
Expenses
Actual - FY2024 Actual - FY2025 Adopted - FY2026 Proposed - FY2027 $0
$2.5M
$5M
$7.5M
$10M
Revenues and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 237
Employee Compensation $2,779,374 $2,532,078 $2,945,421 2,322,310 Employee Benefits $2,600,731 $3,905,748 $2,982,873 1,007,292 Materials and Supplies $79,520 $87,953 $180,828 75,485
Contract Services $3,199,417 $4,393,174 $4,331,333 398,948 Special Projects $67,300 – $40,000 –
Cost Allocation $308,962 $511,081 $550,531 461,180
EXPENSES TOTAL $9,035,304 $11,430,034 $11,030,986 4,265,215 EXPENSES TOTAL $9,035,304 $11,430,034 $11,030,986 4,265,215 Revenues
Transfers In $380,000 $2,183,398 $2,616,053 –
Charges for Services $4,167,314 $5,100,130 $5,736,007 3,105,736 Miscellaneous Revenue $1,431,638 $9,314 – –
Other Financing Sources – $468,984 $553,531 –
REVENUES TOTAL $5,978,952 $7,761,826 $8,905,591 3,105,736 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 FY2024 FY2025 FY2026 FY2027
allocation
ACCOUNTANT I 0 0 2 2
DIRECTOR OF ADMIN SERVICES 1 1 1 1
HUMAN RESOURCES TECH 2 2 2 0
MANAGEMENT ANALYST 0.95 0.95 1 0.5
ACCOUNTANT II 2 2 0 0
FINANCE MANAGER 0.95 0.95 0.95 0.95
SENIOR ACCOUNTANT 1 1 1 1
PURCHASING MANAGER 1 1 1 1
HUMAN RESOURCES ANALYST II 2 2 2 0
INTERN II 0 0 0 0
GRANTS MANAGEMENT ANALYST 0 0 1 1
ACCOUNTING TECHNICIAN 1 1 1 1
BUDGET MANAGER 1 1 1 1
SENIOR MANAGEMENT ANALYST 1 1 1.95 1.95
ACCOUNT CLERK II 3 3 2 2
HUMAN RESOURCES MANAGER 1 1 1 0
ALLOCATION 17.9 17.9 18.9 13.4
In FY 2025-2026, the Human Resources Division was moved to Administration. Staffing for Human Resources moved to Administration.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 238
Budget Unit 100-40-400 General Fund - Administrative Services - Administrative Services Administration Budget at a Glance
Total Revenues 40,747.00
Total Expenditures 460,043.00
Total FTE 1.45
Program Overview
The Administrative Services Administration program oversees and coordinates 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 in FY2025-26, 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 and Council reporting 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.
Adopted Budget
It is recommended that City Council approve a budget of $460,043 for the Administration Services Administration Program. This represents an increase of $68,344 (17.4%) from the FY 2025-26 Adopted Budget. The increase is primarily due to the position reallocations from the Human Resources reorganization to better reflect actual time spent in this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $237,394 $252,215 $242,557 271,545 Employee Benefits $92,162 $195,513 $92,702 124,000
Administrative Services
Administrative Services Administration
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 239
Materials and Supplies $8,807 $7,813 $25,200 26,031
Contract Services $1,835 $1,835 $5,681 5,505
Cost Allocation – $23,126 $25,559 32,962
EXPENSES TOTAL $340,198 $480,501 $391,699 460,043
EXPENSES TOTAL $340,198 $480,501 $391,699 460,043
Revenues
Charges for Services $154,333 $35,714 $36,070 40,747
REVENUES TOTAL $154,333 $35,714 $36,070 40,747
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 FY2024 FY2025 FY2026 FY2027
allocation
MANAGEMENT ANALYST 0.2 0.2 0 0
SENIOR MANAGEMENT ANALYST 1 1 1.2 1.2
DIRECTOR OF ADMIN SERVICES 0.2 0.2 0.2 0.25
ALLOCATION 1.4 1.4 1.4 1.45
Staff time is being reallocated to better reflect actual time spent in this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 240
Programs
Accounting
Business Licenses
Purchasing
Budget
Division Overview
The Finance Division of the City of Cupertino is responsible for overseeing all financial operations, including accounting, budgeting, purchasing, business licensing, and treasury management. Within the Accounting program, the Division ensures accurate and timely financial records, manages payroll, collects revenue, handles banking and investments, and disburses City funds. It also ensures compliance with federal, state, and other regulatory financial reporting standards, manages investment policies, and prepares financial reports and analyses for stakeholders.
The Business Licenses program enforces the City’s Municipal Code and relevant state laws by monitoring business activities to ensure proper licensing and regulatory compliance.
The Purchasing program operates under a hybrid model to manage the procurement of goods and services. It emphasizes fair, transparent, legal and ethical acquisition practices aimed at maximizing value for public funds. Key responsibilities include guiding competitive bid processes, developing policy, procedures and templates, and strengthening cooperative purchasing with other government agencies. The program also supports staff in grant management by identifying new funding opportunities for citywide work programs and projects, assisting with application submittal, and ensuring pre- and post-award requirements are met.
The Budget program oversees both operating and capital budget performance and is responsible for developing the City’s annual budget. It produces a twenty-year financial forecast, projects revenues and expenditures, and provides fiscal analysis and planning. The program supports informed decision-making by offering insights on complex financial matters and long-term fiscal strategies.
Budget at a Glance
Total Revenues 3,064,989.00
Total Expenditures 3,805,172.00
Total FTE 11.95
Service Objectives
Manages all financial transactions, including general ledger accounting, payroll, accounts payable, cash management, revenue collection, banking, investments, and billing.
Prepare financial reports and ensure all transactions reflect sound financial management and regulatory compliance.
Administrative Services
Finance: Division Summary
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 241
Respond to inquiries from the public and internal departments regarding financial matters.
Issue business licenses, collect fees, monitor compliance with the Business License Tax Code, identify non-compliant businesses, and share relevant data with City departments.
Oversee the City's procurement of goods and services in compliance with all applicable laws, ensuring fair, transparent, and cost-effective purchasing processes.
Develop strategic procurement plans, policies, quality control measures, training programs, and electronic systems; provide contractual guidance to City departments.
Stay informed about purchasing trends, pricing, market conditions, and emerging products to support efficient procurement decisions.
Develop the City’s annual operating budget, long-term financial forecast, and revenue/expenditure projections; publish and communicate budget data transparently.
Analyze budget performance, prepare quarterly reports, assist departments with budget amendments, and advise City leadership on financial policies and long-term planning.
Develop grant management procedures, systems and policy that guide consistent processes, reporting and transparency.
Collaborate citywide to identify, research and support application submittal for new grant funding opportunities while directly assisting with pre- and post-award grant processes.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $1,732,108 $1,469,582 $1,882,786 2,050,765 Employee Benefits $718,408 $1,445,083 $897,379 883,292
Materials and Supplies $16,106 $22,679 $51,742 49,454
Contract Services $343,266 $426,154 $388,900 393,443
Special Projects $67,300 – $40,000 –
Cost Allocation $208,512 $325,481 $353,576 428,218
EXPENSES TOTAL $3,085,700 $3,688,979 $3,614,383 3,805,172 EXPENSES TOTAL $3,085,700 $3,688,979 $3,614,383 3,805,172 Revenues
Charges for Services $2,128,861 $2,451,711 $2,883,972 3,064,989 Miscellaneous Revenue $43,680 $8,014 – –
REVENUES TOTAL $2,172,540 $2,459,725 $2,883,972 3,064,989 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 FY2024 FY2025 FY2026 FY2027
allocation
ACCOUNTANT I 0 0 2 2
DIRECTOR OF ADMIN SERVICES 0.6 0.6 0.6 0.75
MANAGEMENT ANALYST 0.75 0.75 1 0.5
ACCOUNTANT II 2 2 0 0
FINANCE MANAGER 0.95 0.95 0.95 0.95
SENIOR ACCOUNTANT 1 1 1 1
PURCHASING MANAGER 1 1 1 1
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 242
position_title FY2024 FY2025 FY2026 FY2027
GRANTS MANAGEMENT ANALYST 0 0 1 1
ACCOUNTING TECHNICIAN 1 1 1 1
BUDGET MANAGER 1 1 1 1
SENIOR MANAGEMENT ANALYST 0 0 0.75 0.75
ACCOUNT CLERK II 3 3 2 2
ALLOCATION 11.3 11.3 12.3 11.95
Staff time is being reallocated to better reflect actual time spent in this program.
Proposed Budget Book FY 2026-2027 243
Budget Unit 100-41-405 General Fund - Finance - Accounting Budget at a Glance
Total Revenues 1,915,064.00
Total Expenditures 2,175,462.00
Total FTE 7.10
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.
Adopted Budget
It is recommended that City Council approve a budget of $2,175,462 for the Accounting program. This represents an increase of $79,319 (3.8%) from the FY 2025-26 Adopted Budget. This budget is relatively unchanged from the prior fiscal year Adopted Budget.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Administrative Services
Accounting
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 244
Employee Compensation $1,002,160 $944,136 $1,050,980 1,126,988 Employee Benefits $420,688 $837,047 $529,691 509,458
Materials and Supplies $7,014 $14,657 $27,736 23,170
Contract Services $325,512 $315,706 $349,900 354,443
Special Projects $47,300 – – –
Cost Allocation – $116,454 $137,836 161,403
EXPENSES TOTAL $1,802,675 $2,228,000 $2,096,143 2,175,462 EXPENSES TOTAL $1,802,675 $2,228,000 $2,096,143 2,175,462 Revenues
Charges for Services $2,128,861 $1,622,987 $1,918,912 1,915,064 Miscellaneous Revenue $43,680 $8,014 – –
REVENUES TOTAL $2,172,540 $1,631,001 $1,918,912 1,915,064 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 FY2024 FY2025 FY2026 FY2027
allocation
ACCOUNTANT I 0 0 1.9 1.9
DIRECTOR OF ADMIN SERVICES 0.2 0.2 0.2 0.25
MANAGEMENT ANALYST 0 0 1 0.5
ACCOUNTANT II 1.9 1.9 0 0
FINANCE MANAGER 0.95 0.95 0.95 0.95
SENIOR ACCOUNTANT 1 1 1 1
ACCOUNTING TECHNICIAN 1 1 1 1
ACCOUNT CLERK II 2 2 1.5 1.5
ALLOCATION 7.05 7.05 7.55 7.1
Staff time is being reallocated to better reflect actual time spent in this program.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 245
Budget Unit 100-41-406 General Fund - Finance - Business Licenses Budget at a Glance
Total Revenues –
Total Expenditures 311,179.00
Total FTE 0.60
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.
Adopted Budget
It is recommended that City Council approve a budget of $311,179 for the Business License program. This represents an increase of $20,186 (6.9%) from the FY 2025-26 Adopted Budget. The increase is primarily due to slight increases to salaries, benefits and cost allocation.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $109,355 $85,095 $58,587 64,327
Employee Benefits $55,009 $75,258 $35,174 37,651
Materials and Supplies $231 $241 – –
Contract Services $17,753 $20,548 $39,000 39,000
Cost Allocation $208,512 $156,994 $158,232 170,201
EXPENSES TOTAL $390,860 $338,136 $290,993 311,179
EXPENSES TOTAL $390,860 $338,136 $290,993 311,179
Administrative Services
Business Licenses
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 246
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
ACCOUNT CLERK II 1 1 0.5 0.5
ACCOUNTANT II 0.1 0.1 0 0
ACCOUNTANT I 0 0 0.1 0.1
ALLOCATION 1.1 1.1 0.6 0.6
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 247
Budget Unit 100-41-425 General Fund - Finance - Purchasing Budget at a Glance
Total Revenues 540,465.00
Total Expenditures 692,391.00
Total FTE 2.25
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, open, legal and ethical 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. The Purchasing program also provides citywide grant management support that guides and assists department efforts to identify, achieve and manage new funding opportunities. Major activities include development of administrative procedures, identification of applicable funding opportunities, support with grant application submittals and ensuring reporting meets city and grant 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.
Develop grant management procedures, systems and related policy that guide staff through consistent review and approval processes, standardize reporting and create transparency citywide.
Identify and research federal, state and local funding opportunities for specific projects and citywide programs
Collaborate with staff in grant application submittal and provide support with pre- and post-award grant processes.
Adopted Budget
It is recommended that City Council approve a budget of $692,391 for the Purchasing program. This represents an increase of $46,499 (7.2%) from the FY 2025-26 Adopted Budget. The increase is primarily due to an increase in cost allocation.
Revenue and Expenditures
Administrative Services
Purchasing
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 248
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $272,096 $273,495 $414,392 457,934 Employee Benefits $113,106 $284,448 $183,552 176,992
Materials and Supplies $891 $2,591 $6,040 6,316
Special Projects – – $20,000 –
Cost Allocation – $19,822 $21,908 51,149
EXPENSES TOTAL $386,093 $580,356 $645,892 692,391
EXPENSES TOTAL $386,093 $580,356 $645,892 692,391
Revenues
Charges for Services – $321,408 $387,426 540,465
REVENUES TOTAL – $321,408 $387,426 540,465
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 FY2024 FY2025 FY2026 FY2027
allocation
DIRECTOR OF ADMIN SERVICES 0.2 0.2 0.2 0.25
PURCHASING MANAGER 1 1 1 1
GRANTS MANAGEMENT ANALYST 0 0 1 1
ALLOCATION 1.2 1.2 2.2 2.25
The increase in staffing is due to the reallocation of the Director of Administrative Services due to Human Resources moving to Administration in FY2025-2026.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 249
Budget Unit 100-41-426 General Fund - Finance - Budget
Budget at a Glance
Total Revenues 609,460.00
Total Expenditures 626,140.00
Total FTE 2.00
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 longterm financial forecast, and revenue and expenditure projections. Additionally, the Budget program provides financial planning and fiscal analysis on City issues and complex business decisions.
Service Objectives
Develops the annual operating budget.
Coordinates the preparation and publication of the operating budget document.
Communicates the budget through the City's interactive financial transparency portal.
Engages residents in the budgeting process.
Develops the Twenty-Year General Fund Financial Forecast.
Prepares and updates revenue and expenditure forecasts.
Analyze budget performance during the year and prepare Quarterly Financial Reports.
Provides departments with timely and accurate financial reports to assist them in their daily decisionmaking.
Assists departments with any necessary budget amendments during the year.
Advises the City in the areas of short and long-term financial planning and fiscal analysis.
Advises the City in developing and implementing sound financial policies.
Adopted Budget
It is recommended that City Council approve a budget of $626,140 for the Budget program. This represents an increase of $44,785 (7.7%) from the FY 2025-26 Adopted Budget. The increase is primarily due to position reallocations and an increase in cost allocation.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Administrative Services
Budget
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 250
Expenses
Employee Compensation $348,497 $166,856 $358,827 401,516 Employee Benefits $129,605 $248,330 $148,962 159,191
Materials and Supplies $7,970 $5,190 $17,966 19,968
Contract Services – $89,900 – –
Special Projects $20,000 – $20,000 –
Cost Allocation – $32,211 $35,600 45,465
EXPENSES TOTAL $506,073 $542,487 $581,355 626,140
EXPENSES TOTAL $506,073 $542,487 $581,355 626,140
Revenues
Charges for Services – $507,316 $577,634 609,460
REVENUES TOTAL – $507,316 $577,634 609,460
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 FY2024 FY2025 FY2026 FY2027
allocation
MANAGEMENT ANALYST 0.75 0.75 0 0
SENIOR MANAGEMENT ANALYST 0 0 0.75 0.75
DIRECTOR OF ADMIN SERVICES 0.2 0.2 0.2 0.25
BUDGET MANAGER 1 1 1 1
ALLOCATION 1.95 1.95 1.95 2
The staffing increase reflects a reallocation of the Administrative Services Director’s time to this program, following the transition of Human Resources to the Administration Department.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 251
Programs
Human Resources
Retiree Benefits
Insurance Administration
Workers Compensation Insurance
Long Term Disability
Compensated Absences
Division 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, 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.
In FY2025-2026, the Human Resources Division was moved to Administration.
Budget at a Glance
AS: Human Resources Division
Total Revenues –
Total Expenditures –
Total FTE –
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.
Administrative Services
Human Resources: Division Summary
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 252
Revenue and Expenditures
The following table details revenues and expenditures 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.
AS: Human Resources
Expenses
Expenses
Employee Compensation $755,422 $758,079 $767,356 –
Employee Benefits $381,501 $667,178 $310,702 –
Materials and Supplies $54,608 $57,462 $103,886 –
Contract Services $240,397 $199,843 $257,216 –
Cost Allocation – $80,114 $88,544 –
EXPENSES TOTAL $1,431,929 $1,762,676 $1,527,704 –
EXPENSES TOTAL $1,431,929 $1,762,676 $1,527,704 –
Revenues
Charges for Services $1,884,120 $1,000,511 $1,139,591 – REVENUES TOTAL $1,884,120 $1,000,511 $1,139,591 –
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 FY2024 FY2025 FY2026 FY2027
allocation
DIRECTOR OF ADMIN SERVICES 0.2 0.2 0.2 0
HUMAN RESOURCES ANALYST II 2 2 2 0
HUMAN RESOURCES MANAGER 1 1 1 0
HUMAN RESOURCES TECH 2 2 2 0
INTERN II 0 0 0 0
ALLOCATION 5.2 5.2 5.2 0
In FY2025-2026, staffing for the Human Resources Division was moved to Administration.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 253
Budget Unit 100-44-412 General Fund - Human Resources - Human Resources Budget at a Glance
Total Revenues –
Total Expenditures –
Total FTE 0.00
Program Overview
In FY 2025-2026, this program was moved to Administration. A complete discussion of the program can be found under Budget Unit 100-16-412. 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
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
There is no budget requested for this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $755,422 $758,079 $767,356 –
Employee Benefits $381,501 $667,178 $310,702 –
Materials and Supplies $54,608 $57,462 $103,886 –
Contract Services $240,397 $199,843 $257,216 –
Administrative Services
Human Resources
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 254
Cost Allocation – $80,114 $88,544 –
EXPENSES TOTAL $1,431,929 $1,762,676 $1,527,704 –
EXPENSES TOTAL $1,431,929 $1,762,676 $1,527,704 –
Revenues
Charges for Services $1,884,120 $1,000,511 $1,139,591 – REVENUES TOTAL $1,884,120 $1,000,511 $1,139,591 –
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 FY2024 FY2025 FY2026 FY2027
allocation
DIRECTOR OF ADMIN SERVICES 0.2 0.2 0.2 0
HUMAN RESOURCES ANALYST II 1.7 1.7 1.7 0
HUMAN RESOURCES MANAGER 1 1 1 0
HUMAN RESOURCES TECH 1.95 1.95 1.95 0
INTERN II 0 0 0 0
ALLOCATION 4.85 4.85 4.85 0
In FY2025-2026, staffing for the Human Resources was moved to Administration.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 255
Budget Unit 100-44-417 General Fund - Human Resources - Insurance Administration Budget at a Glance
Total Revenues –
Total Expenditures –
Total FTE –
Program Overview
In FY 2025-2026, this program was moved to Administration. A complete discussion of the program can be found under Budget Unit 100-15-417. 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
Provide the City with General Liability and Property Insurance Provide the City with Employment Practices Law Insurances Proposed Budget
There is no budget requested for this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $20,924 $20,712 $21,470 –
Employee Benefits $8,550 $17,949 $8,820 –
Contract Services $1,887,701 $2,328,228 $2,504,296 –
Cost Allocation $50,696 $2,478 $2,738 –
EXPENSES TOTAL $1,967,870 $2,369,367 $2,537,324 –
EXPENSES TOTAL $1,967,870 $2,369,367 $2,537,324 –
Revenues
Charges for Services – $1,612,194 $1,676,374 –
Miscellaneous Revenue – $1,300 – –
REVENUES TOTAL – $1,613,494 $1,676,374 –
Administrative Services
Insurance Administration
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 256
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 FY2024 FY2025 FY2026 FY2027
allocation
HUMAN RESOURCES ANALYST II 0.1 0.1 0.1 0
HUMAN RESOURCES TECH 0.05 0.05 0.05 0
ALLOCATION 0.15 0.15 0.15 0
In FY2025-2026, staffing for the Insurance Administration was moved to Administration under City Attorney.
Proposed Budget Book FY 2026-2027 257
Budget Unit 620-44-418 Workers' Compensation - Human Resources - Workers Compensation Insurance Budget at a Glance
Total Revenues –
Total Expenditures –
Total FTE –
Program Overview
In FY 2025-2026, this program was moved to Administration. A complete discussion of the program can be found under Budget Unit 620-16-418. 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
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
There is no budget requested for this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $33,526 $31,491 $31,252 –
Employee Benefits $12,151 $15,794 $11,270 –
Contract Services -$38,356 $336,296 $400,840 –
Cost Allocation $29,295 $50,519 $52,451 –
EXPENSES TOTAL $36,615 $434,100 $495,813 –
EXPENSES TOTAL $36,615 $434,100 $495,813 –
Revenues
Administrative Services
Workers Compensation Insurance
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 258
Other Financing Sources – $468,984 $553,531 –
REVENUES TOTAL – $468,984 $553,531 –
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 FY2024 FY2025 FY2026 FY2027
allocation
HUMAN RESOURCES ANALYST II 0.2 0.2 0.2 0
ALLOCATION 0.2 0.2 0.2 0
In FY2025-2026, staffing for Worker's Compensation Insurance was moved to Administration.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 259
Budget Unit 641-44-419 Compensated Absence/LTD - Human Resources - Long Term Disability Budget at a Glance
Total Revenues –
Total Expenditures –
Total FTE –
Program Overview
In FY 2025-2026, this program was moved to Administration. A complete discussion of the program can be found under Budget Unit 641-16-419. 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
Obtain and manage insurance policies
Negotiate rates
Coordinate claims
Proposed Budget
There is no budget requested for this program.
Revenue 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.
Expenses
Expenses
Contract Services $98,820 $95,312 $130,000 –
Cost Allocation $2,381 $979 $875 –
EXPENSES TOTAL $101,201 $96,291 $130,875 –
EXPENSES TOTAL $101,201 $96,291 $130,875 –
Revenues
– – – – –
REVENUES TOTAL – – – –
In FY2025-2026, staffing for Long Term Disability was moved to Administration.
Administrative Services
Long Term Disability
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 260
Proposed Budget Book FY 2026-2027 261
Budget Unit 641-44-420 Compensated Absence/LTD - Human Resources - Compensated Absences Budget at a Glance
Total Revenues –
Total Expenditures –
Total FTE –
Program Overview
In FY 2025-2026, this program was moved to Administration. A complete discussion of the program can be found under Budget Unit 641-16-420. 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
Properly account and disburse benefits as set forth in the employee contracts.
Proposed Budget
There is no budget requested for this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $33,526 $31,491 $31,252 –
Employee Benefits $12,151 $15,794 $11,270 –
Contract Services -$38,356 $336,296 $400,840 –
Cost Allocation $29,295 $50,519 $52,451 –
EXPENSES TOTAL $36,615 $434,100 $495,813 –
EXPENSES TOTAL $36,615 $434,100 $495,813 –
Revenues
Other Financing Sources – $468,984 $553,531 –
REVENUES TOTAL – $468,984 $553,531 –
There is no staffing associated with this program.
Administrative Services
Compensated Absences
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 262
Proposed Budget Book FY 2026-2027 263
Budget Unit 642-44-414 Retiree Medical - Human Resources - Retiree Benefits Budget at a Glance
Total Revenues –
Total Expenditures –
Total FTE –
Program Overview
In FY 2025-2026, this program was moved to Administration. A complete discussion of the program can be found under Budget Unit 642-16-414. 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
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
There is no budget requested for this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Benefits $1,387,959 $1,564,230 $1,662,000 –
Cost Allocation $13,988 $16,647 $15,311 –
EXPENSES TOTAL $1,401,947 $1,580,877 $1,677,311 –
EXPENSES TOTAL $1,401,947 $1,580,877 $1,677,311 –
Revenues
Transfers In – $1,592,398 $1,946,053 –
Miscellaneous Revenue $1,387,959 – – –
REVENUES TOTAL $1,387,959 $1,592,398 $1,946,053 –
Administrative Services
Retiree Benefits
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 264
There is no staffing associated with this program.
Proposed Budget Book FY 2026-2027 265
Budget Units
Expenses
Administration 1,936,769
Business and Community Services 1,709,086
Recreation and Education 4,094,468
Sports, Safety and Outdoor Rec 4,945,967
EXPENSES TOTAL 12,686,290
Budget at a Glance
Total Revenues 5,126,130.00
Total Expenditures 12,686,290.00
Total FTE 28.63
Organization
Rachelle Sander, Director of Parks and Recreation
Parks and Recreation
Department Overview
PROPOSED
FY2027
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 266
The organizational chart for the Parks and Recreation Department is as follows (described in text for accessibility):
Director, Parks and Recreation Department – overall head of the department; has direct reporting relationships from:
Assistant Director
Senior Management Analyst
Administrative Assistant
Communications and Marketing Coordinator
Recreation Manager (Community Events, Facilities, Youth and Teen Recreation Division) Recreation Manager (Outdoor Recreation Division)
Recreation Manager (Senior Wellness and Recreation Division) Recreation Manager (Sports and Fitness Division)
Senior Management Analyst – reports to the Director, Parks and Recreation Department and supervises:
Management Analyst
Recreation Manager – reports to the Director, Parks and Recreation Department and supervises:
Recreation Coordinator (3)
Senior Office Assistant (2)
Office Assistant
Facility Attendant
Recreation Manager – reports to the Director, Parks and Recreation Department and supervises:
Recreation Coordinator (3)
Office Assistant
Recreation Manager – reports to the Director, Parks and Recreation Department and supervises:
Recreation Coordinator (2)
Senior Office Assistant
Facility Attendant (2)
Recreation Manager – reports to the Director, Parks and Recreation Department and supervises:
Recreation Coordinator (2)
Senior Office Assistant
Proposed Budget Book FY 2026-2027 267
Notable Accomplishments and New Initiatives
Notable Accomplishments
3rd Grade Creek Tours – Over the course of 20 trips, 897 third graders from 11 CUSD classrooms participated in hands-on learning experiences focused on stormwater pollution prevention, the riparian habitat of Stevens Creek, and local flora and fauna. The program provides students with an engaging opportunity to connect classroom lessons to the natural environment in their own community.
Return of 4th of July Evening Fireworks – After a one-year hiatus and under an accelerated planning timeline, the Department successfully delivered a full-scale evening fireworks event through close coordination with the pyrotechnics contractor, County Fire, County Sheriff’s Office, and Public Works. The 20-minute display was launched from Hyde Middle School, with three designated viewing areas established at Miller Avenue, Creekside Park, and Sedgewick Elementary School, each accommodating approximately 3,000 attendees. CERT/CARES teams were on site to address first aid needs, while staff ensured a safe and accessible environment through the provision of amplified sound, light towers, portable restrooms, additional waste receptacles, and clear event signage.
The success of this large-scale event was made possible by the essential role of Parks and Recreation staff, whose leadership and on-the-ground coordination were critical at every stage—from planning and interagency collaboration to site preparation, logistics, and real-time event management. Their efforts ensured not only the seamless execution of operations but also a safe, welcoming, and well-organized experience for the community.
Classes/Camps Offered – Offered 3,482 classes and camps for all ages and covering various subjects.
Community Events – Coordinated 68 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 22 applications for the FY 2026-2027 application cycle. The Parks and Recreation Commission evaluated applications in April and provided a recommendation regarding funding to City Council for final approval.
Enhance Senior Support Services – Partnered with Avenidas to provide monthly case management services for seniors since November 2025 and hosted several presentations including transportation, aging, and mental health to highlight other available resources to seniors.
Further Develop Intergenerational Engagement – Hosted an intergenerational event called Na Leo Mokupuni in Cupertino, Island Sounds in Cupertino, with about 150 attendees, including seniors, families, and friends, enjoying and experiencing island music and dance from local performers of all ages.
Hidden Treasures 2025 – 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. 53 volunteers donated over 830 hours for the event, and over $18,000 worth of donated items were sold.
Personal Training Offerings – Reconfiguration of underutilized space at the Sports Center to offer more room and resources for its increasingly popular Personal Training program, as well as the introduction of specialty, small group fitness classes.
Senior Center Memberships – Added over 100 additional memberships since last year, for a total of 1,863 active memberships to date.
Senior Travel Program – Expanded the Travel Program to offer at least 26 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.
Softball League Offerings – Increased adult softball league to five nights per week, and begin offering one additional season per year, for a total of three seasons.
Sponsorships for Events – Negotiated and received over $10,750 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 1,890, with an average of 2,350 check-ins per week. The Center currently offers 25 fitness classes per week and four personal trainers to meet the increasing demand from members.
Proposed Budget Book FY 2026-2027 268
Swim Lessons – Increased swim lesson offerings at Blackberry Farm from 578 to 655 lessons to meet the growing demand for swim instruction programs in the community.
Teen Resource Fair 2026 – Partnered with Fremont Union High School District Interdistrict Council and Main Street to host the third annual Teen Resource Fair, which showcased potential volunteering and job opportunities for teens with the City. The event also offered multiple mental health and wellness booth resources.
Teen Speaker Series – In November 2025, the Cupertino Youth Activity Board hosted its first full Teen Speaker Series for Cupertino teens. This free, three-part series featured topics recommended by the Cupertino Teen Commission. Across three Saturdays, speakers shared valuable insights on College Planning, Financial Literacy, and Tech Career Paths, reaching an average of 20–30 teens at each event.
New Initiatives
Continue Enhancing Senior Support Services – Implementation of recommendations from the Successful Aging Solutions & Community Consulting (SASCC) gap and feasibility analysis.
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 2024
JulyJune
FY 2025
JulyJune
FY 2026
JulyDec
% of Parks and Recreation Department customers
surveyed who rate services as good or excellent 98% 98% 99% % of programs maintaining minimum registration 79% 79% 72% % Department's total cost recovery for all (direct and
indirect) costs 56% 50% 50%
% growth in reservations 8% 8% 2%
% growth in total enrollment of classes/camps/programs 7% 13% 0% % growth in memberships 24% 11% 12%
Proposed Expenditures by Division
Data Updated: May 05, 2026, 12:06 AM View Report
Total Proposed Budget (FY2027)
$12,686,290
AAddmmiinniissttrraattiioonn::
$$11,,993366,,776699 ((1155%%))
Administration:
$1,936,769 (15%)
BBuussiinneessss aanndd CCoommmmuunniittyy SSeerrvviicceess::
$$11,,770099,,008866 ((1133%%))
Business and Community Services:
$1,709,086 (13%)
RReeccrreeaattiioonn aanndd EEdduuccaattiioonn::
$$44,,009944,,446688 ((3322%%))
Recreation and Education:
$4,094,468 (32%)
SSppoorrttss,, SSaaffeettyy aanndd OOuuttddoooorr RReecc::
$$44,,994455,,996677 ((3399%%))
Sports, Safety and Outdoor Rec:
$4,945,967 (39%)
Administration
Business and Community Services
Recreation and Education
Sports, Safety and Outdoor Rec
Proposed Budget Book FY 2026-2027 269
Department Expenditure History
Data Updated: May 05, 2026, 12:06 AM View Report
Expenses
Actual - FY2024 Actual - FY2025 Adopted - FY2026 Proposed - FY2027 $0
$2.5M
$5M
$7.5M
$10M
$12.5M
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 $753,637 (6.2%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to rising costs within Contract Services, including the reallocation of Blackberry Farm Golf Course maintenance contract, re-budgeting of services and rentals for the 4th of July Evening Fireworks, and higher payments to instructors from growing registrations for contracted classes and programs.
The increase is also due to higher cost allocation charges.
This department is also requesting a one-time budget proposal to replace deteriorating round tables frequently utilized at the Quinlan Community Center.
The chart below outlines the proposed budget request.
Proposal Appropriation
QCC Round Table Replacement $15,500
Total $15,500
Revenues and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $3,920,697 $4,381,630 $4,950,998 5,066,278 Employee Benefits $1,601,223 $2,819,274 $1,682,278 1,671,093 Materials and Supplies $359,063 $381,732 $615,287 551,034 Contract Services $3,243,996 $1,688,880 $2,145,863 2,710,791 Special Projects $3,529 $25,017 $105,000 –
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 270
Cost Allocation $1,681,979 $2,462,429 $2,484,838 2,590,976 Other Financing Uses $90,137 $85,805 $124,102 96,118
EXPENSES TOTAL $10,900,624 $11,844,766 $12,108,366 12,686,290 EXPENSES TOTAL $10,900,624 $11,844,766 $12,108,366 12,686,290 Revenues
Use of Money $868,070 $811,847 $711,529 713,400
Intergovernmental $3,750 $106,465 $11,000 –
Charges for Services $4,989,583 $4,177,348 $3,975,450 4,375,230 Miscellaneous Revenue $46,001 $140,097 $32,500 37,500
REVENUES TOTAL $5,907,404 $5,235,758 $4,730,479 5,126,130 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 FY2024 FY2025 FY2026 FY2027
allocation
RECREATION COORDINATOR 9.88 9.88 9.88 9.88
DIRECTOR OF PARKS REC 1 1 1 1
MANAGEMENT ANALYST 1 1 1 1
EMERGENCY SERVICES MANAGER (RECREATION MANAGER) 0 0 1 0 ADMINISTRATIVE ASSISTANT 0.9 0.9 0.9 0.9
COMMUNITY RELATIONS COORDINATOR 0 0 1 0
FACILITY ATTENDANT 3 3 3 3
COMMS AND MARKETING COORDINATOR 0 0 1 1
SENIOR MANAGEMENT ANALYST 1 1 1 1
COMMUNITY OUTREACH SPECIALIST 1 1 0 0
ASST DIRECTOR PARKS AND RECREATION 0 0 0 0.95
ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0.95 0
OFFICE ASSISTANT 2 2 2 2
SR OFFICE ASSISTANT 4 4 4 4
MAINTENANCE WORKER I/II 0 0.1 0.1 0
RECREATION MANAGER 3.85 3.85 3.85 3.9
ALLOCATION 27.63 27.73 30.68 28.63
An Assistant Director of Parks and Recreation was added and positions within the Office of Emergency Management and Community Outreach and Neighborhood Watch programs have been transferred accordingly due to the reorganization to the City Manager's Office.
An Assistant Director of Parks and Recreation was added to improve efficiency and strengthen service delivery to the community.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 271
Administration
Cultural Events
Facilities
Overview
Cultural Events and Facilities, overseen by the Youth, Teen, Events, and Facilities Division, includes management of the Quinlan Community Center (QCC), several park buildings, reservable picnic sites, and most City special events and community festivals. The Administration program oversees the main front office for the Department, providing front-line communication with the public, answering general inquiries, and processes registrations for classes, camps, events, and facility and park picnic reservations.
The Cultural Events program mainly produces events located at the Quinlan Community Center and Memorial Park, such as the 4th of July morning festivities, Summer Concert Series, Shakespeare in the Park, and Tree Lighting Events. Other events organized in this program are the 4th of July Evening Fireworks show, Movies in the Park, and Big Bunny 5K and Kids Fun Run. The program also partners with location organizations to produce community and cultural festivals at Memorial Park and the Civic Center Plaza. From reviewing applications to issuing permits, discussing guidelines and logistics, and providing facility support, this program guides festival organizers based on the City’s festival policies. Current festivals include Cherry Blossom, Holi, Dilli Haat, Diwali, Silicon Valley Day n’ Night, Kids N Fun, India Heritage, and Ikebana Show.
The Facilities program is responsible for the operations and rentals at the Quinlan Community Center (QCC), Creekside Park Building, Park Picnic Areas at Memorial, Linda Vista, Portal, and Creekside Park, and Monta Vista Recreation Center.
Budget at a Glance
Total Revenues 219,000.00
Total Expenditures 1,709,086.00
Total FTE 5.50
Service Objectives
Provide first-rate customer service through the implementation of consistent policies, procedures, and performance standards and deliver up-to-date communication on current programs and events to community members.
Administer recreation software system for customer registration, memberships, point-of-sale, and facility rentals in-person or online.
Provide various special events to benefit the community members, including the Summer Concert Series, Movies in the Park, Shakespeare in the Park, 4th of July Morning Celebration and Evening Fireworks Show, 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.
Cultural Events and Facilities
Summary
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 272
Provide a rental facility or picnic area for meetings, social events, or other group gatherings.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $630,946 $558,288 $612,266 723,006 Employee Benefits $266,969 $461,249 $260,393 276,420
Materials and Supplies $37,519 $37,425 $31,173 67,721
Contract Services $118,125 $110,988 $156,402 242,667
Cost Allocation $266,515 $204,109 $366,293 399,272
EXPENSES TOTAL $1,320,075 $1,372,059 $1,426,527 1,709,086 EXPENSES TOTAL $1,320,075 $1,372,059 $1,426,527 1,709,086 Revenues
Use of Money $221,710 $211,741 $181,988 188,000
Intergovernmental $3,750 – – –
Charges for Services $40,820 $2,360 $1,000 –
Miscellaneous Revenue $38,291 $49,962 – 31,000
REVENUES TOTAL $304,571 $264,062 $182,988 219,000
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 FY2024 FY2025 FY2026 FY2027
allocation
OFFICE ASSISTANT 1 1 1 1
RECREATION COORDINATOR 0.75 0.75 1 1
RECREATION MANAGER 0.5 0.5 0.5 0.5
SR OFFICE ASSISTANT 2 2 2 2
FACILITY ATTENDANT 2 1 1 1
ALLOCATION 6.25 5.25 5.5 5.5
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 273
Budget Unit 100-61-602 General Fund - Business and Community Services - Administration Budget at a Glance
Total Revenues –
Total Expenditures 584,742.00
Total FTE 3.00
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 $584,742 for the Administration program. This represents an increase of $52,555 (9.9%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to increases in Employee Compensation and Benefits from contract negotiations and increases in cost allocation.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Parks and Recreation
Administration
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 274
Expenses
Expenses
Employee Compensation $252,998 $256,691 $260,829 287,973 Employee Benefits $133,059 $251,369 $145,194 155,267
Materials and Supplies $754 $930 $1,578 1,399
Cost Allocation $184,545 $125,251 $124,586 140,103
EXPENSES TOTAL $571,356 $634,241 $532,187 584,742
EXPENSES TOTAL $571,356 $634,241 $532,187 584,742
Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
OFFICE ASSISTANT 1 1 1 1
SR OFFICE ASSISTANT 2 2 2 2
ALLOCATION 3 3 3 3
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 275
Budget Unit 100-61-605 General Fund - Business and Community Services - Cultural Events Budget at a Glance
Total Revenues 31,000.00
Total Expenditures 606,254.00
Total FTE 1.25
Program Overview
The Youth, Teen, Events, and Facilities Division's events program produces the City's special events including 4th of July festivities, Big Bunny 5K fun run, 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.
Organize and facilitate the Big Bunny 5K fun run.
Bring the community together with the annual Tree Lighting celebration.
Serve as liaison and issue special event permits to nonprofit organization event producers to ensure successful community and cultural festivals in Memorial Park and Civic Center Plaza.
Proposed Budget
It is recommended that City Council approve a budget of $606,254 for the Cultural Events program. This represents an increase of $166,463 (37.9%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to re-budgeted funds and staffing to support the 4th of July Evening Fireworks program, reallocation of funds for the Big Bunny 5K program, and increases in cost allocation.
The table below details the festival fee waivers for FY 2026-2027.
Parks and Recreation
Cultural Events
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 276
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $124,268 $121,099 $169,081 210,587 Employee Benefits $46,371 $106,050 $58,187 63,367
Materials and Supplies $20,409 $19,079 $8,784 29,843
Contract Services $113,476 $104,023 $149,535 235,800
Cost Allocation $81,970 $58,210 $54,204 66,657
EXPENSES TOTAL $386,494 $408,462 $439,791 606,254
EXPENSES TOTAL $386,494 $408,462 $439,791 606,254
Revenues
Intergovernmental $3,750 – – –
Miscellaneous Revenue $38,291 $49,962 – 31,000
REVENUES TOTAL $42,041 $49,962 – 31,000
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 FY2024 FY2025 FY2026 FY2027
allocation
RECREATION COORDINATOR 0.75 0.75 1 1
RECREATION MANAGER 0.25 0.25 0.25 0.25
ALLOCATION 1 1 1.25 1.25
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 277
Budget Unit 100-61-630 General Fund - Business and Community Services - Facilities Budget at a Glance
Total Revenues 188,000.00
Total Expenditures 518,090.00
Total FTE 1.25
Program Overview
The Youth, Teen, Events, and Facilities Division oversees the Quinlan Community Center that 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 $518,090 for the Facilities program. This represents an increase of $63,541 (14%) from the FY 2025-26 Adopted Budget.
This increase is primarily due to increases in Employee Compensation from greater part-time support needed for Commission meetings and weekend events and rentals, and a one-time budget proposal to replace deteriorating round tables utilized at the center.
The chart below outlines the proposed budget requests.
Proposal Appropriation
Parks and Recreation
Facilities
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 278
QCC Round Table Replacement $15,500
Total $15,500
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $253,681 $180,499 $182,356 224,446 Employee Benefits $87,539 $103,830 $57,012 57,786
Materials and Supplies $16,356 $17,416 $20,811 36,479
Contract Services $4,649 $6,964 $6,867 6,867
Cost Allocation – $20,648 $187,503 192,512
EXPENSES TOTAL $362,224 $329,357 $454,549 518,090
EXPENSES TOTAL $362,224 $329,357 $454,549 518,090
Revenues
Use of Money $221,710 $211,741 $181,988 188,000
Charges for Services $40,820 $2,360 $1,000 –
REVENUES TOTAL $262,530 $214,100 $182,988 188,000
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 FY2024 FY2025 FY2026 FY2027
allocation
RECREATION MANAGER 0.25 0.25 0.25 0.25
FACILITY ATTENDANT 2 1 1 1
ALLOCATION 2.25 1.25 1.25 1.25
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 279
Community Outreach and Neighborhood Watch
Office of Emergency Management
Division Overview
The Emergency Management Division’s mission is to coordinate effective disaster response and recovery efforts. Through planning, training, and exercises, the division prepares and equips response personnel and community members to minimize the risks to life safety, property, and the environment. This Division also includes Community Outreach and Neighborhood Watch, which fosters communication and cultural understanding by recruiting and supporting neighborhood volunteers and promoting active community engagement.
In FY 2025-2026, this program was transferred to the City Manager's Office. This program has moved to the Administration Department. 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.
Budget at a Glance
Total Revenues –
Total Expenditures –
Total FTE –
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.
Prepare, test, and update 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), and state law.
Support and engage Citizen Corps including Block Leaders, Neighborhood Watch, Community Emergency Response Team (CERT), Cupertino Amateur Radio Emergency Service (CARES), and Medical Reserve Corps (MRC).
Coordinate and deliver training of City staff in personal preparedness, SEMS/NIMS, and EOC functions.
Operate emergency alert and notification systems including AlertSCC, Radio Cupertino, and digital platforms.
Conduct emergency exercises and after-action reviews to evaluate and improve readiness.
Lead community outreach and public education on emergency preparedness.
Maintain effective partnerships with local, state, and national emergency management organizations and/or allied disaster preparedness and response agencies.
Administer the contract for Law Enforcement Services with the Santa Clara County Sheriff's Office.
Serve as liaison to the Santa Clara County Fire Department.
Aid in the development, implementation, and coordination of City programs and community-building activities designed to bring Cupertino neighborhoods together, with an emphasis on emergency Parks and Recreation
Office of Emergency Services: Division Summary
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 280
preparedness.
Coordinate and disseminate relevant and important information to Cupertino residents through regular meetings and communications that build relationships and strengthen neighborhoods, and gather feedback and concerns.
Facilitate collaboration with Emergency Preparedness and Neighborhood Watch programs.
Train residents to connect and organize neighbors and neighborhoods.
Coordinate Neighborhood Watch orientations and groups.
Disseminate important City news and safety information.
Organize and conduct annual National Night Out initiative.
Adopted Budget
There is no budget associated with this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation – $238,886 $491,919 –
Employee Benefits – $320,059 $199,474 –
Materials and Supplies – $9,314 $44,818 –
Contract Services – $7,332 $33,487 –
Special Projects – $25,039 – –
Cost Allocation – $139,787 $150,438 –
EXPENSES TOTAL – $740,416 $920,136 –
EXPENSES TOTAL – $740,416 $920,136 –
Revenues
Intergovernmental – $106,465 $11,000 –
Charges for Services – $152,678 – –
REVENUES TOTAL – $259,143 $11,000 –
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 FY2024 FY2025 FY2026 FY2027
allocation
EMERGENCY SERVICES COORDINATOR (COMMUNITY RELATIONS
COORDINATOR) 0 0 1 0
ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0.95 0
EMERGENCY SERVICES MANAGER (RECREATION MANAGER) 0 0 1 0 ALLOCATION 0 0 2.95 0
Due to the reorganization of this program to the City Manager's Office, positions within the program have been transferred accordingly.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 281
Budget Unit 100-65-632 General Fund - Office of Emergency Services - Community Outreach and Neighborhood Watch
Budget at a Glance
Total Revenues –
Total Expenditures –
Total FTE –
Program Overview
In FY 2025-2026, this program was transferred to the City Manager's Office. A complete discussion of the program can be found under Budget Unit 100-12-633. 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.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation – $110,212 $115,273 –
Employee Benefits – $95,103 $48,962 –
Materials and Supplies – $1,745 $8,856 –
Special Projects – $23,862 – –
Cost Allocation – $53,648 $51,985 –
EXPENSES TOTAL – $284,570 $225,076 –
EXPENSES TOTAL – $284,570 $225,076 –
Revenues
Intergovernmental – $99,669 – –
REVENUES TOTAL – $99,669 – –
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.
Parks and Recreation
Community Outreach and Neighborhood Watch
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 282
position_title FY2024 FY2025 FY2026 FY2027
allocation
EMERGENCY SERVICES COORDINATOR (COMMUNITY RELATIONS
COORDINATOR) 0 0 1 0
ALLOCATION 0 0 1 0
Due to the reorganization of this program to the City Manager's Office, positions within the program have been transferred accordingly.
Proposed Budget Book FY 2026-2027 283
Budget Unit 100-65-633 General Fund - Office of Emergency Services - Office of Emergency Management Budget at a Glance
Total Revenues –
Total Expenditures –
Total FTE –
Program Overview
In FY 2025-2026, this program was transferred to the City Manager's Office. A complete discussion of the program can be found under Budget Unit 100-12-633. 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.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation – $128,674 $376,646 –
Employee Benefits – $224,956 $150,512 –
Materials and Supplies – $7,569 $35,962 –
Contract Services – $7,332 $33,487 –
Special Projects – $1,176 – –
Cost Allocation – $86,139 $98,453 –
EXPENSES TOTAL – $455,845 $695,060 –
EXPENSES TOTAL – $455,845 $695,060 –
Revenues
Intergovernmental – $6,796 $11,000 –
Charges for Services – $152,678 – –
REVENUES TOTAL – $159,474 $11,000 –
Staffing
Parks and Recreation
Office of Emergency Management
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 284
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 FY2024 FY2025 FY2026 FY2027
allocation
ASSISTANT DIRECTOR OF PARKS AND REC 0 0 0.95 0
EMERGENCY SERVICES MANAGER (RECREATION MANAGER) 0 0 1 0 ALLOCATION 0 0 1.95 0
Due to the reorganization of this program to the City Manager's Office, positions within the program have been transferred accordingly.
Proposed Budget Book FY 2026-2027 285
Recreation Administration
Library Services
Division Overview
The Administration Division of the Parks and Recreation department is responsible for the oversight and management of the department and its four program divisions, including project management (from day-to-day services to special projects, City Work Program Items, and Capital Improvement Projects), marketing and community outreach of all programs and events, software management, and budget, contracts, and grants.
This division also provides personnel training and development, addresses Council related work, supports Commission meetings, drafts and enforces policies and procedures, and facilitates collaborations with other departments.
Library Services augments the existing library service hours currently provided to the community through the Santa Clara County (SCC) Library Joint Powers Authority, with an additional 12 operational hours agreed to per week.
Budget at a Glance
Total Revenues –
Total Expenditures 1,936,769.00
Total FTE 5.85
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.
Provide increased library service for our constituents through support of 12 additional operational hours per week.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Parks and Recreation Administration
Division Summary
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 286
Expenses
Expenses
Employee Compensation $753,606 $814,021 $847,667 1,144,462 Employee Benefits $278,978 $621,507 $288,660 407,656
Materials and Supplies $130,552 $111,164 $159,430 166,909 Contract Services $62,731 $66,403 $69,857 80,836
Special Projects $3,529 -$22 $105,000 –
Cost Allocation $169,698 $245,086 $93,791 136,906
EXPENSES TOTAL $1,399,093 $1,858,159 $1,564,405 1,936,769 EXPENSES TOTAL $1,399,093 $1,858,159 $1,564,405 1,936,769 Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
DIRECTOR OF PARKS REC 1 1 1 1
MANAGEMENT ANALYST 1 1 1 1
ADMINISTRATIVE ASSISTANT 0.9 0.9 0.9 0.9
COMMS AND MARKETING COORDINATOR 0 0 1 1
SENIOR MANAGEMENT ANALYST 1 1 1 1
COMMUNITY OUTREACH SPECIALIST 1 1 0 0
ASST DIRECTOR PARKS AND RECREATION 0 0 0 0.95
ALLOCATION 4.9 4.9 4.9 5.85
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 287
Budget Unit 100-60-601 General Fund - Parks and Recreation - Recreation Administration Budget at a Glance
Total Revenues –
Total Expenditures 1,936,769.00
Total FTE 5.85
Program Overview
The Recreation Administration program provides overall department administration, project management, community outreach, support to the Parks and Recreation, Library, and Teen 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 $1,936,769 for the Recreation Administration program. This represents an increase of $372,364 (23.8%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to the addition of an Assistant Director of Parks and Recreation position, increases in Employee Compensation and Benefits from contract negotiations, and increases in cost allocation.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Parks and Recreation
Recreation Administration
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 288
Employee Compensation $753,606 $814,021 $847,667 1,144,462 Employee Benefits $278,978 $621,507 $288,660 407,656
Materials and Supplies $130,552 $111,164 $159,430 166,909 Contract Services $62,731 $66,403 $69,857 80,836
Special Projects $3,529 -$22 $105,000 –
Cost Allocation – $84,659 $93,791 136,906
EXPENSES TOTAL $1,229,395 $1,697,732 $1,564,405 1,936,769 EXPENSES TOTAL $1,229,395 $1,697,732 $1,564,405 1,936,769 Revenues
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
DIRECTOR OF PARKS REC 1 1 1 1
MANAGEMENT ANALYST 1 1 1 1
ADMINISTRATIVE ASSISTANT 0.9 0.9 0.9 0.9
COMMS AND MARKETING COORDINATOR 0 0 1 1
SENIOR MANAGEMENT ANALYST 1 1 1 1
COMMUNITY OUTREACH SPECIALIST 1 1 0 0
ASST DIRECTOR PARKS AND RECREATION 0 0 0 0.95
ALLOCATION 4.9 4.9 4.9 5.85
An Assistant Director of Parks and Recreation was added to improve efficiency and strengthen service delivery to the community.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 289
Budget Unit 100-60-636 General Fund - Parks and Recreation - Library Services Budget at a Glance
Total Revenues –
Total Expenditures 0.00
Total 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.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Cost Allocation $169,698 $160,427 – 0
EXPENSES TOTAL $169,698 $160,427 – 0
EXPENSES TOTAL $169,698 $160,427 – 0
Revenues
– – – – –
REVENUES TOTAL – – – –
Staffing
There is no staffing associated with this program.
Parks and Recreation
Library Services
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 290
Proposed Budget Book FY 2026-2027 291
Administration
Youth Teen Recreation
Senior Center
Teen Programs
Events
Overview
Youth, Teen, Senior, and Events includes management of the Cupertino Senior Center, programming and events for seniors, youth, and teens, and other community focused events. The Administration program is responsible for rentals at Community Hall and the operations, rentals, and memberships at the Cupertino Senior Center. The center promotes a healthy lifestyle for the 50+ community, through quality education, recreation, travel, social opportunities, community resources, and volunteer opportunities.
Youth Teen Recreation includes both contracted and staff-led classes and camps for those under the age of 18, with some enrichment opportunities for adults. Subjects include academic and enrichment classes, STEAM programming, recreation camps, preschool, and some special interest courses. These programs offer a variety of options for community members and is one of the main revenue generating avenues for the Department. This program also produces family focused events, including the Youth Spelling Bee, Monster Mash, Breakfast with Santa, Santa Visits, and Sweetheart Social, and the 3 to 4-year-old preschool program is supplemented with events such as ice cream socials, trick or treating, Mother’s Day Tea, and Social Saturdays program for both parents and kids.
The Senior Center offers a wide variety of classes and programs, socials and events, travel and volunteer opportunities, and resources for its members and the 50+ community. Classes include a range of ongoing, instructor-led enrichment and fitness programs tailored to the diverse interests and needs of older adults.
Socials and events promote interactive social activities to foster new friendships or bring together those with similar interests. Travel works towards enriching lives and expanding horizons for seniors, offering an easy and seamless way of group travel to various destinations. Volunteering provides an opportunity for older adults to help create a warm and welcoming environment for the senior community, from teaching and interacting with members to providing behind-the-scenes support for programs and events. Senior resources play a critical role in supporting the health and independence of older adults. In partnership with various county agencies and non-profits, the Senior Center provides in-person appointments focusing on legal aid, health insurance counseling, and caregiver support.
Teen Programs supports Teen volunteering and leadership opportunities, through the Leaders in Training (LIT) summer volunteer program, Recreation Events Volunteers (REV), and the Youth Activity Board (YAB). Other events are organized by and tailored towards teens, such as the Cupertino Café, <hack> Cupertino, Pizza and Politics, Teen Resource Fair, Teen Speaker Series, and Teen Movie Nights.
The Events program organizes a variety of community events that highlight nature, recreation, and family engagement. Examples include the Earth and Arbor Day Festival, Cupertino Campout, Pooch Plunge, Signing Santa, Glow Night Golf, and intergenerational golf tournaments. These events provide unique, locally focused experiences for the community to enjoy throughout the year.
Youth, Teen, Senior and Events
Summary
Proposed Budget Book FY 2026-2027 292
Budget at a Glance
Total Revenues 2,083,730.00
Total Expenditures 4,094,468.00
Total FTE 8.60
Service Objectives
Provide management and supervision of all programs, activities, personnel, and facilities within the Senior Wellness division.
Increase memberships and provide first-rate customer service and manage customer registration, memberships, point-of-sale, and facility rentals at the Senior Center and Community Hall.
Provide a rental facility for City meetings, community meetings, business functions, social events, and other similar activities.
Provide volunteer service opportunities for adults age 50+ and appreciation events for senior volunteers who support the Department throughout the year. Offer fitness and enrichment courses, educational presentations, group trips and tours, and socialization opportunities to adults age 50+.
Provide a senior-focused annual health fair and senior resource referrals.
Provide a preschool program, summer camps, and an extensive variety of contract classes for youth, teens, and adults. Provide family-oriented programs designed to increase community engagement.
Create opportunities for youth and teens to build their leadership abilities by creating activities, events, and programs by teens for 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 and provide space for teens to de-stress, create, study, develop and grow in all areas.
Organize and facilitate community events such as the Earth and Arbor Day Festival, Cupertino Campout, Pooch Plunge, Signing Santa, Glow Night Golf, and the Intergenerational Golf Tournament.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $1,023,111 $1,155,894 $1,300,578 1,391,263 Employee Benefits $415,602 $690,472 $415,438 438,009
Materials and Supplies $119,983 $129,225 $194,036 190,343 Contract Services $895,187 $892,398 $1,051,068 1,312,179 Cost Allocation $601,339 $662,922 $647,972 725,151
Other Financing Uses $30,212 $28,019 $53,526 37,523
EXPENSES TOTAL $3,085,435 $3,558,930 $3,662,618 4,094,468 EXPENSES TOTAL $3,085,435 $3,558,930 $3,662,618 4,094,468 Revenues
Use of Money $49,849 $97,911 $83,025 96,000
Charges for Services $1,668,867 $1,747,940 $1,658,950 1,981,230 Miscellaneous Revenue $7,700 $90,135 $32,500 6,500
REVENUES TOTAL $1,726,417 $1,935,986 $1,774,475 2,083,730
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 293
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 FY2024 FY2025 FY2026 FY2027
allocation
RECREATION SUPERVISOR 0 0 0 0
RECREATION COORDINATOR 4.25 4.05 4.15 4.15
RECREATION MANAGER 1.45 1.45 1.45 1.45
SR OFFICE ASSISTANT 1 1 1 1
FACILITY ATTENDANT 1 2 2 2
ALLOCATION 7.7 8.5 8.6 8.6
Proposed Budget Book FY 2026-2027 294
Budget Unit 100-62-608 General Fund - Recreation and Education - Administration Budget at a Glance
Total Revenues 90,000.00
Total Expenditures 868,970.00
Total FTE 3.95
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 $868,970 for the Administration program. This represents an increase of $84,803 (10.8%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to increases in Employee Compensation and Benefits from contract negotiations and cost allocation charges.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Parks and Recreation
Administration
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 295
Expenses
Expenses
Employee Compensation $345,432 $427,616 $469,893 505,510 Employee Benefits $126,475 $325,203 $172,088 185,176
Materials and Supplies $9,595 $7,154 $12,472 11,834
Contract Services $2,435 $2,279 $5,112 3,612
Cost Allocation $158,361 $142,079 $124,602 162,838
EXPENSES TOTAL $642,298 $904,330 $784,167 868,970
EXPENSES TOTAL $642,298 $904,330 $784,167 868,970
Revenues
Use of Money $41,515 $92,030 $74,825 90,000
Charges for Services $500 $900 $100 –
REVENUES TOTAL $42,015 $92,930 $74,925 90,000
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 FY2024 FY2025 FY2026 FY2027
allocation
RECREATION SUPERVISOR 0 0 0 0
RECREATION COORDINATOR 0.2 0.2 0.2 0.2
RECREATION MANAGER 0.75 0.75 0.75 0.75
SR OFFICE ASSISTANT 1 1 1 1
FACILITY ATTENDANT 1 2 2 2
ALLOCATION 2.95 3.95 3.95 3.95
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 296
Budget Unit 100-62-623 General Fund - Recreation and Education - Senior Center Budget at a Glance
Total Revenues 456,500.00
Total Expenditures 871,032.00
Total FTE 2.05
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 $871,032 for the Senior Center program. This represents an increase of $141,676 (19.4%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to rising costs for Contract Services and an increase in associated travel program costs, as registrations for Senior programs have been growing and results in an increase in anticipated revenues for this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Parks and Recreation
Senior Center
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 297
Employee Compensation $250,259 $260,211 $300,449 323,376 Employee Benefits $86,271 $176,745 $88,421 93,449
Materials and Supplies $74,000 $84,573 $101,163 125,773 Contract Services $91,237 $118,293 $117,500 190,580
Cost Allocation $183,730 $122,988 $121,823 137,854
EXPENSES TOTAL $685,496 $762,810 $729,356 871,032
EXPENSES TOTAL $685,496 $762,810 $729,356 871,032
Revenues
Charges for Services $300,510 $365,947 $350,000 456,500 Miscellaneous Revenue $7,700 $78,175 – –
REVENUES TOTAL $308,210 $444,122 $350,000 456,500
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 FY2024 FY2025 FY2026 FY2027
allocation
RECREATION COORDINATOR 1.8 1.6 1.8 1.8
RECREATION MANAGER 0.25 0.25 0.25 0.25
ALLOCATION 2.05 1.85 2.05 2.05
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 298
Budget Unit 100-62-639 General Fund - Recreation and Education - Teen Programs Budget at a Glance
Total Revenues 9,590.00
Total Expenditures 270,615.00
Total FTE 0.75
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 $270,615 for the Teen Programs program. This represents an increase of $15,033 (5.9%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to cost allocation charges and increases in Employee Compensation and Benefits from contract negotiations.
Parks and Recreation
Teen Programs
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 299
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $109,392 $131,564 $149,250 159,132 Employee Benefits $34,295 $75,232 $40,328 39,324
Materials and Supplies $13,620 $13,489 $17,176 17,492
Cost Allocation $75,491 $52,836 $48,828 54,667
EXPENSES TOTAL $232,797 $273,121 $255,582 270,615
EXPENSES TOTAL $232,797 $273,121 $255,582 270,615
Revenues
Use of Money $7,950 $5,401 $8,200 6,000
Charges for Services $2,573 $3,139 $1,350 3,590
REVENUES TOTAL $10,523 $8,540 $9,550 9,590
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 FY2024 FY2025 FY2026 FY2027
allocation
RECREATION COORDINATOR 0.5 0.5 0.5 0.5
RECREATION MANAGER 0.25 0.25 0.25 0.25
ALLOCATION 0.75 0.75 0.75 0.75
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 300
Budget Unit 100-62-640 General Fund - Recreation and Education - Events Budget at a Glance
Total Revenues 18,500.00
Total Expenditures 80,796.00
Total FTE 0.15
Program Overview
This program provides the coordination and production of several City-wide events, such as the 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 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 $80,796 for the Events program. This represents a decrease of $14,884 (-15.6%) from the FY 2025-26 Adopted Budget.
The decrease is due to reallocation of funds for the Big Bunny 5K program to 100-61-605.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $39,513 $32,277 $19,227 23,328
Employee Benefits $11,039 $18,670 $7,313 7,627
Materials and Supplies $1,966 $4,750 $26,024 8,975
Contract Services $3,406 $5,050 $18,938 16,088
Cost Allocation $15,441 $29,279 $24,178 24,778
EXPENSES TOTAL $71,364 $90,025 $95,680 80,796
Parks and Recreation
Events
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 301
EXPENSES TOTAL $71,364 $90,025 $95,680 80,796
Revenues
Charges for Services $0 $7,204 $7,500 12,000
Miscellaneous Revenue $0 $11,960 $32,500 6,500
REVENUES TOTAL $0 $19,164 $40,000 18,500
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.
PositionTitle FY2024 FY2025 FY2026 FY2027
Allocation
RECREATION COORDINATOR 0.25 0.25 0.15 0.15
ALLOCATION 0.25 0.25 0.15 0.15
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 302
Budget Unit 580-62-613 Recreation Program - Recreation and Education - Youth Teen Recreation Budget at a Glance
Total Revenues 1,509,140.00
Total Expenditures 2,003,055.00
Total FTE 1.70
Program Overview
The Youth, Teen, Events, and Facilities Division oversees 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. This program also produces the 3 to 4-year-old preschool program which is supplemented with events such as ice cream socials, trick or treating, Mother’s Day Tea, and Social Saturdays program for both parents and kids.
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 $2,003,055 for the Youth Teen Recreation program.
This represents an increase of $205,222 (11.4%) from the FY 2025-26 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 specialized contracted programs. This also leads to an increase in anticipated revenues for this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Parks and Recreation
Youth Teen Recreation
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 303
Expenses
Expenses
Employee Compensation $278,516 $304,227 $361,759 379,917 Employee Benefits $157,523 $94,623 $107,288 112,433
Materials and Supplies $20,802 $19,260 $37,201 26,269
Contract Services $798,109 $766,776 $909,518 1,101,899
Cost Allocation $168,316 $315,740 $328,541 345,014
Other Financing Uses $30,212 $28,019 $53,526 37,523
EXPENSES TOTAL $1,453,479 $1,528,644 $1,797,833 2,003,055 EXPENSES TOTAL $1,453,479 $1,528,644 $1,797,833 2,003,055 Revenues
Use of Money $384 $480 – –
Charges for Services $1,365,285 $1,370,750 $1,300,000 1,509,140 REVENUES TOTAL $1,365,669 $1,371,230 $1,300,000 1,509,140 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 FY2024 FY2025 FY2026 FY2027
allocation
RECREATION COORDINATOR 1.5 1.5 1.5 1.5
RECREATION MANAGER 0.2 0.2 0.2 0.2
ALLOCATION 1.7 1.7 1.7 1.7
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 304
Park Facilities
Blackberry Farm Golf Course
Outdoor Recreation
Sports Center Operations
Overview
Sports and Outdoor includes management of the Stevens Creek Corridor, including Blackberry Farm, McClellan Ranch Preserve, and Blackberry Farm Golf Course, the Cupertino Sports Center, and sports and fitness and environmental education classes, camps, and programs. The Park Facilities program oversees the operations and rentals of Blackberry Farm’s pool and picnic sites, the Community Gardens at McClellan Ranch Preserve and Wilson Park, and all programming and special events within the corridor. This program utilizes the two pools at Blackberry Farm during the summer months to provide recreation and lap swimming, along with private and semi-private swim lessons, and runs a Park Ranger program to staff rangers who patrol and maintain the Steven Creek Trail, enforce park rules and regulations to ensure public safety and environmental stewardship, and lead nature education programs.
The Blackberry Farm Golf Course is a nine-hole course open year-round to the community that serves all ages and offers golf, footgolf, and a pro-shop offering equipment rentals and merchandise sales.
The Outdoor Recreation Program includes both staff-led and contracted classes, camps, and programs, from youth focused programs, including soccer, gymnastics, dance, and ballet, to adult fitness programs, such as line dancing, archery, aerobics and yoga. This program also includes classes and camps focused on environmental education and outdoor exploration. Signature programs include the Third-Grade Creek Tour, for local elementary students to learn about creek ecosystem, blacksmithing demonstrations and classes at the historic Baer Blacksmith Shop, sports field management of the nine school fields as agreed to under the City’s Joint Use Agreement with the Cupertino Union School District, and an adult softball league at the Memorial Park softball field.
The Cupertino Sports Center features a fitness center with strength training and cardio equipment, 17 tennis courts, eight pickleball courts, two racquetball courts, and an indoor and outdoor sports court. Offerings include a variety of classes and programs such as Yoga, Zumba, Strength Training, and Pilates. These are scheduled at various days and times throughout the week to meet the needs of members. This program also produces contracted classes, camps, and programs to expand on racquet sports instruction, including tennis, table tennis, pickleball, and badminton. Personal Training is also available, offering one-on-one instruction to help members achieve their health and fitness goals.
Budget at a Glance
Total Revenues 2,823,400.00
Total Expenditures 4,945,967.00
Total FTE 8.68
Sports and Outdoor
Summary
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 305
Service Objectives
Provide engaging programs and camps for youth and families, with a focus on nature, science, environmental education, and blacksmithing, while expanding access to outdoor learning opportunities.
Operate and maintain two seasonal pools at Blackberry Farm to offer recreational swimming, lap swim, and private/semi-private swim lessons for the community. Offer seasonal rentals of outdoor picnic areas for small to large groups, supporting community gatherings and special events.
Deliver Park Ranger-led activities such as interpretive walks and star-gazing events; launch and manage a Stevens Creek Corridor volunteer program including docent opportunities at McClellan Ranch Preserve.
Provide drop-in visitor hours at the Environmental Education Center and Baer Blacksmith Shop, and collaborate with partner organizations—including SCVAS, Grassroots Ecology, Watershed Stewardship Program Members, Santa Clara Valley Bird Alliance, Rolling Hills 4-H, and UCCE Master Gardeners—to offer public education programs.
Manage community garden programs at McClellan Ranch Preserve and Wilson Park, and offer fee-based gardening classes and programs for both youth and adults.
Grow the golfer base through leagues, high school partnerships, and Youth on Course participation; ensure high-quality customer service in the Golf Pro Shop through efficient tee time bookings, equipment rentals, and the sale of accessories and concessions.
Increase memberships, participation in fitness classes, personal training, and enrollment in contract camps and classes and explore new program offerings.
Offer and increase adult sports league programming, such as the softball league at Memorial Park.
Provide sports, dance, fitness, and wellness classes and camps for youth, teens, and adults.
Manage user group field rentals under the Cupertino Union School District/City Joint Use Agreement.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $1,513,034 $1,614,541 $1,698,568 1,807,547 Employee Benefits $639,673 $725,988 $518,313 549,008
Materials and Supplies $71,010 $94,603 $185,830 126,061 Contract Services $2,167,953 $611,759 $835,049 1,075,109 Special Projects $0 – – –
Cost Allocation $644,427 $1,210,525 $1,226,344 1,329,647 Other Financing Uses $59,925 $57,786 $70,576 58,595
EXPENSES TOTAL $5,096,021 $4,315,202 $4,534,680 4,945,967 EXPENSES TOTAL $5,096,021 $4,315,202 $4,534,680 4,945,967 Revenues
Use of Money $596,511 $502,196 $446,516 429,400
Charges for Services $3,279,895 $2,274,371 $2,315,500 2,394,000 Miscellaneous Revenue $10 – – –
REVENUES TOTAL $3,876,416 $2,776,566 $2,762,016 2,823,400 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.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 306
position_title FY2024 FY2025 FY2026 FY2027
allocation
OFFICE ASSISTANT 1 1 1 1
RECREATION COORDINATOR 4.88 5.08 4.73 4.73
RECREATION MANAGER 1.9 1.9 1.9 1.95
SR OFFICE ASSISTANT 1 1 1 1
ALLOCATION 8.78 8.98 8.63 8.68
Proposed Budget Book FY 2026-2027 307
Budget Unit 100-63-612 General Fund - Sports, Safety and Outdoor Recreation - Park Facilities Budget at a Glance
Total Revenues 246,400.00
Total Expenditures 1,712,248.00
Total FTE 2.98
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, University of California Cooperative Extension 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 $1,712,248 for the Park Facilities program. This represents an increase of $193,249 (12.7%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to increases in Employee Compensation and Benefits from contract negotiations and cost allocation charges.
Revenue and Expenditures
Parks and Recreation
Park Facilities
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 308
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $668,431 $674,121 $723,335 808,888 Employee Benefits $146,965 $314,163 $174,557 210,376
Materials and Supplies $22,186 $22,155 $38,395 42,412
Contract Services $106,814 $109,612 $111,877 113,877
Cost Allocation $221,484 $491,960 $470,835 536,695
EXPENSES TOTAL $1,165,879 $1,612,012 $1,518,999 1,712,248 EXPENSES TOTAL $1,165,879 $1,612,012 $1,518,999 1,712,248 Revenues
Use of Money $48,765 $74,029 $47,016 49,400
Charges for Services $128,030 $179,400 $160,000 197,000 REVENUES TOTAL $176,796 $253,428 $207,016 246,400
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 FY2024 FY2025 FY2026 FY2027
allocation
OFFICE ASSISTANT 0 0 0.1 0.1
RECREATION COORDINATOR 1.98 2.13 2.33 2.33
RECREATION MANAGER 0.35 0.55 0.55 0.55
SR OFFICE ASSISTANT 0.85 0.85 0 0
ALLOCATION 3.18 3.53 2.98 2.98
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 309
Budget Unit 560-63-616 Blackberry Farm - Sports, Safety and Outdoor Recreation - Blackberry Farm Golf Course
Budget at a Glance
Total Revenues 723,500.00
Total Expenditures 838,454.00
Total FTE 1.50
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 City Council approve a budget of $838,454 for the Blackberry Farm Golf Course program.
This represents an increase of $291,356 (53.3%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to the reallocation of the Blackberry Farm Golf Course maintenance contract from 560-84-268.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $147,721 $241,945 $245,338 268,971 Employee Benefits $11,845 $182,969 $78,170 83,146
Materials and Supplies $17,969 $21,513 $29,998 27,001
Contract Services $252,078 $22,818 $10,395 260,853
Special Projects $0 – – –
Cost Allocation $85,430 $178,258 $180,365 190,400
Parks and Recreation
Blackberry Farm Golf Course
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 310
Other Financing Uses $15,390 $16,532 $2,832 8,083
EXPENSES TOTAL $530,433 $664,036 $547,098 838,454
EXPENSES TOTAL $530,433 $664,036 $547,098 838,454
Revenues
Use of Money $51,933 $57,126 $52,000 68,500
Charges for Services $611,331 $674,474 $641,000 655,000 Miscellaneous Revenue $10 – – –
REVENUES TOTAL $663,274 $731,600 $693,000 723,500
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 FY2024 FY2025 FY2026 FY2027
allocation
OFFICE ASSISTANT 0 0.5 0.85 0.85
RECREATION COORDINATOR 0.65 0.65 0.3 0.3
RECREATION MANAGER 0.3 0.35 0.35 0.35
SR OFFICE ASSISTANT 0.15 0.15 0 0
ALLOCATION 1.1 1.65 1.5 1.5
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 311
Budget Unit 570-63-621 Sports Center - Sports, Safety and Outdoor Recreation - Sports Center Operations Budget at a Glance
Total Revenues 1,112,500.00
Total Expenditures 1,566,850.00
Total FTE 2.60
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 $1,566,850 for the Sports Center Operations program. This represents a decrease of $28,537 (-1.8%) from the FY 2025-26 Adopted Budget.
This budget is relatively unchanged from the prior fiscal year Adopted Budget.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $420,799 $434,334 $474,105 477,971 Employee Benefits $264,524 $126,273 $152,418 160,621
Materials and Supplies $27,120 $46,052 $100,705 53,106
Contract Services $1,540,531 $205,200 $381,460 373,779
Special Projects $0 – – –
Parks and Recreation
Sports Center Operations
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 312
Cost Allocation $192,546 $435,164 $472,531 488,384
Other Financing Uses $14,323 $13,235 $14,218 12,989
EXPENSES TOTAL $2,459,843 $1,260,259 $1,595,437 1,566,850 EXPENSES TOTAL $2,459,843 $1,260,259 $1,595,437 1,566,850 Revenues
Use of Money $363,872 $281,279 $217,500 226,500
Charges for Services $1,998,806 $863,579 $869,000 886,000 REVENUES TOTAL $2,362,678 $1,144,858 $1,086,500 1,112,500 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 FY2024 FY2025 FY2026 FY2027
allocation
OFFICE ASSISTANT 1 0.5 0 0
RECREATION COORDINATOR 0.85 1 1 1
RECREATION MANAGER 0.55 0.55 0.55 0.6
SR OFFICE ASSISTANT 0 0 1 1
ALLOCATION 2.4 2.05 2.55 2.6
Staff time is being reallocated to better reflect actual time spent in this program.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 313
Budget Unit 580-63-620 Recreation Program - Sports, Safety and Outdoor Recreation - Outdoor Recreation Budget at a Glance
Total Revenues 741,000.00
Total Expenditures 828,415.00
Total FTE 1.60
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 $828,415 for the Outdoor Recreation program. This represents a decrease of $44,731 (-5.1%) from the FY 2025-26 Adopted Budget.
The decrease is mainly due to reductions in Employee Benefits costs and savings in Materials and Supplies from contracting softball league management services.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $276,084 $264,140 $255,790 251,717 Employee Benefits $216,338 $102,581 $113,168 94,865
Materials and Supplies $3,735 $4,883 $16,732 3,542
Parks and Recreation
Outdoor Recreation
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 314
Contract Services $268,530 $274,129 $331,317 326,600
Cost Allocation $144,967 $105,143 $102,613 114,168
Other Financing Uses $30,212 $28,019 $53,526 37,523
EXPENSES TOTAL $939,866 $778,896 $873,146 828,415
EXPENSES TOTAL $939,866 $778,896 $873,146 828,415
Revenues
Use of Money $131,941 $89,762 $130,000 85,000
Charges for Services $541,728 $556,918 $645,500 656,000 REVENUES TOTAL $673,669 $646,680 $775,500 741,000
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 FY2024 FY2025 FY2026 FY2027
allocation
OFFICE ASSISTANT 0 0 0.05 0.05
RECREATION COORDINATOR 1.4 1.3 1.1 1.1
RECREATION MANAGER 0.7 0.45 0.45 0.45
ALLOCATION 2.1 1.75 1.6 1.6
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 315
Budget Unit 100-70-700 General Fund - Community Development - Community Development Administration Budget at a Glance
Total Revenues 200,000.00
Total Expenditures 595,584.00
Total FTE 0.50
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 $595,584 for the Community Development Administration program. This represents an increase of $171,887 (40.5%) from the FY 2025-26 Adopted Budget. The increase is primarily due to the inclusion of bank fees to this year's budget.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $103,687 $109,856 $111,663 122,057 Employee Benefits $43,250 $90,447 $44,400 47,442
Materials and Supplies $2,157 $3,188 $14,597 14,382
Contract Services $157,556 $135,372 – 150,000
Special Projects $136,895 – – –
Cost Allocation $334,114 $245,187 $253,037 261,703
EXPENSES TOTAL $777,659 $584,050 $423,697 595,584
Community Development
Community Development Administration
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 316
EXPENSES TOTAL $777,659 $584,050 $423,697 595,584
Revenues
Miscellaneous Revenue – $188,911 – 200,000
REVENUES TOTAL – $188,911 – 200,000
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 FY2024 FY2025 FY2026 FY2027
allocation
MANAGEMENT ANALYST 0.2 0.2 0.2 0.2
DIRECTOR OF COMM DEVELOPMENT 0.3 0.3 0.3 0.3
ALLOCATION 0.5 0.5 0.5 0.5
There are no changes to the current level of staffing.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 317
Budget Units
Expenses
Community Development 595,584
Planning 4,767,306
Housing Services 997,967
Building 5,520,122
Code Enforcement 1,971,393
EXPENSES TOTAL 13,852,372
Budget at a glance
Total Revenues 13,980,276.00
Total Expenditures 13,852,372.00
Total FTE 32.98
Organization
Benjamin Fu, Director of Community Development
Community Development
Department Overview
PROPOSED
FY2027
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 318
Notable Accomplishments
The City approved over 15 residential projects (visit cupertino.gov/major projects). Most notable:
a) Summerhill I residential project with 55 townhomes at the former Staples/Fontana’s/Pizza Hut site; b) Toll Brothers 59-unit townhome project at the former United Furniture site; c) Two Dividend Homes townhome projects totaling 89 units on Stevens Creek Blvd to replace existing office buildings;
d) Rise (Vallco Town Center) SB35 application modification to allow 2,669 total housing units (including 356 below market rate units), up to 1.6Msf of office and 226,000sf of retail space. e) Mary Ave Villas – 40-unit affordable housing development including housing for individuals with developmental disabilities (IDD)
f) Summerhill II residential project with 51 townhomes around Evulich Ct. (on Linda Vista Dr.) on the west side of the City
g) Harvest Properties 122-unit townhome/single-family residential development immediately east of Whole Foods.
Commencing on a potential year-long process of updating the Housing Element to identify additional, and/or upzone existing, Priority Housing Sites to address requirements of state housing law.
Submitted to the Department of Housing and Urban Development (HUD) the 2025-2030 Community Development Block Grant (CDBG) Consolidated Plan.
Produced the 2026 Homelessness Status Update Council Informational Memorandum.
Approved funding commitments for the Mary Ave and Wolfe Rd affordable housing projects through the Community Development Block Grant (CDBG), Below Market Rate Affordable Housing Fund (BMR AHF), and Permanent Local Housing Allocation (PLHA) funding programs.
Approved via resolution a new policy to give highest priority in the Below Market Rate (BMR) Housing program waitlist to tenants of expiring BMR units to prevent displacement.
Partnered with Santa Clara County Fire Department (SCCFD) to propose local amendments and adopt the 2025 California Codes and regulations (Title 24) under Ordinance No. 25-2278.
Inspection Team established an enforcement process to ensure compliance to SB721 for balcony repairs.
Partnered with Innovation & Technology (I&T) to automate the expiration of permits within Accela.
Building Division’s permit center staff processed 1809 permit applications between July 1, 2025, to December 31, 2025.
The Building Division’s inspection staff performed and resulted 6692 inspections between July 1, 2025, to December 31, 2025.
Proposed Budget Book FY 2026-2027 319
Code Enforcement, in collaboration with I&T, deployed a new tool for parking enforcement. The previous hardware was outdated and not effective or efficient. The new system allows better equipment compatibility and accessibility and provides more efficient responses to public needs.
Oversized Vehicle Online Parking Permit module went online for residents in October 2025. Public Works, I&T and Code Enforcement staff collaborated to produce this easy-to-use website for residents to obtain their free parking permits.
Code Enforcement achieved Oversized Vehicle parking compliance throughout the city. Staff worked with the Santa Clara County Sheriff’s Office on enforcement measures and conducted regular enforcement to ensure rules were being followed during the prohibition periods. Random inspections have also been conducted to ensure compliance.
Unhoused encampment monitoring and clean-ups. Code Enforcement staff has continued to patrol the city to monitor for any new encampments, with prevention in mind. When encampments are identified, Housing and Code Enforcement staff work toward individualized resolutions based on the needs of each site.
New Initiatives
Collaborate with Innovation and Technology Department to implement OpenCounter to improve the online permitting portal and processes.
Process Improvement – 1) modified the Municipal Code for changes to state law related to urban lot splits (SB9/SB450); 2) amended fees for urban lot splits (SB9) subdivisions; and 3) continue to collaborate with the Innovation and Technology Applications team to streamline processes and project intake/review, and data collection to address requirements of state law.
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 2024
JulyJune
FY 2025
JulyJune
FY 2026
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 peryear
Public Outreach Events 15 9 5
12 per
year
Proposed Budget Book FY 2026-2027 320
Funds received from Community Block Grant
(CDBG) federal entitlement program
$388,459 $358,910 $173,313
Comply
with
HUD's
annual
timeliness
test
Proposed Budget
It is recommended that City Council approve a budget of $14,009,372 for the Community Development department. This represents an increase of $1,096,074 (8.5%) from the FY 2025-26 Adopted Budget. The increase is primarily due to Employee Compensation and Contract Services.
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.
This budget also includes funding request for on-call contracts in the Planning Division:
Additional appropriations for on-call contract for Design Review - $35,000 Additional appropriations for on-call contract for Environmental Review - $82,000 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.
Proposed Expenditures by Division
Data Updated: May 05, 2026, 12:06 AM View Report
Total Proposed Budget (FY2027)
$13,852,372
CCoommmmuunniittyy DDeevveellooppmmeenntt::
$$559955,,558844 ((44%%))
Community Development:
$595,584 (4%)
PPllaannnniinngg::
$$44,,776677,,330066 ((3344%%))
Planning:
$4,767,306 (34%)
HHoouussiinngg SSeerrvviicceess::
$$999977,,996677 ((77%%))
Housing Services:
$997,967 (7%)
BBuuiillddiinngg::
$$55,,552200,,112222 ((4400%%))
Building:
$5,520,122 (40%)
CCooddee EEnnffoorrcceemmeenntt::
$$11,,997711,,339933 ((1144%%))
Code Enforcement:
$1,971,393 (14%)
Community Development
Planning
Housing Services
Building
Code Enforcement
Department Expenditure History
Proposed Budget Book FY 2026-2027 321
Data Updated: May 05, 2026, 12:06 AM View Report
Expenses
Actual - FY2024 Actual - FY2025 Adopted - FY2026 Proposed - FY2027 $0
$2.5M
$5M
$7.5M
$10M
$12.5M
Revenues and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $3,807,128 $4,133,313 $4,914,198 5,195,657 Employee Benefits $1,818,064 $4,038,148 $2,148,163 2,171,962 Materials and Supplies $650,749 $660,468 $915,643 621,664 Contract Services $666,612 $605,198 $397,980 972,458
Special Projects $962,442 $135,248 $610,000 –
Cost Allocation $3,111,654 $3,006,447 $2,862,314 3,048,631 Other Financing Uses $482,077 $769,409 $1,065,000 1,842,000 EXPENSES TOTAL $11,498,726 $13,348,231 $12,913,298 13,852,372 EXPENSES TOTAL $11,498,726 $13,348,231 $12,913,298 13,852,372 Revenues
Revenues – $13,900 $5,000 –
Other Taxes – $457,847 $4,532,926 4,532,926
Licenses and Permits $4,381,712 $5,724,077 $4,235,000 6,500,000 Fines and Forfeitures $261,300 $258,437 $225,000 228,000 Use of Money $29,535 $30,180 $7,944 8,000
Transfers In – $53,570 – –
Intergovernmental $543,777 $241,797 $459,523 535,400
Charges for Services $968,342 $1,400,906 $1,567,000 1,553,000 Miscellaneous Revenue $69,331 $216,404 $55,050 255,950
Other Financing Sources $127,037 $183,288 $367,000 367,000 REVENUES TOTAL $6,381,033 $8,580,407 $11,454,443 13,980,276 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 FY2024 FY2025 FY2026 FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 322
position_title FY2024 FY2025 FY2026 FY2027
allocation
DEPUTY BUILDING OFFICIAL 1 1 1 1
SENIOR PLANNER 1.9 1.9 2.9 2.9
CODE ENFORCEMENT OFFICER 2 2 2 2
SR CODE ENFORCEMENT OFFICER 2 2 1 1
MANAGEMENT ANALYST 1 1 1 1
PERMIT CENTER MANAGER 0 0 0 0
PERMIT TECHNICIAN 4 4 4 4
PLANNING MANAGER 1.9 2 1 0.7
BUILDING INSPECTOR 3.92 3.92 3.92 4
ASSISTANT HOUSING COORDINATOR 0 0 0.85 0.95
ADMINISTRATIVE ASSISTANT 1.75 1.75 1.75 1.75
SR BUILDING INSPECTOR 0.98 0.98 0.98 1
ASSISTANT PLANNER 3 2 2 3
ASSOCIATE PLANNER 5 5 3 2
BUILDING OFFICIAL 1 1 1 1
ASSIST DIR OF COMMITY DEV 1 1 1 0.8
OFFICE ASSISTANT 1 1 1 1
CODE ENFORCEMENT SUPERVISOR 0 0 1 1
DIRECTOR OF COMM DEVELOPMENT 0.94 0.94 0.94 0.98
SENIOR HOUSING COORDINATOR 0 0.8 0.85 0.9
PLAN CHECK ENGINEER 2 2 2 2
ALLOCATION 34.39 34.29 33.19 32.98
Staff time is being reallocated to better reflect actual time spent in this department.
Proposed Budget Book FY 2026-2027 323
Budget at a Glance
Total Revenues 3,400,000.00
Total Expenditures 1,560,215.00
Total FTE 5.35
Program Overview
The Building Code Enforcement 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 attributed 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 Community Development
Building Code Enforcement
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 324
Proposed Budget
It is recommended that City Council approve a budget of $1,560,215 for the Building Code Enforcement Inspection program. This represents an increase of $144,895 (10.2%) from the FY 2025-26 Adopted Budget.
The increase is primarily due to Employee Compensation and Cost Allocation costs.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $637,763 $603,156 $715,135 797,925 Employee Benefits $306,558 $603,620 $348,336 371,257
Materials and Supplies $9,717 $8,990 $10,756 16,128
Cost Allocation $401,589 $259,899 $266,093 299,905
Other Financing Uses $22,870 $78,764 $75,000 75,000
EXPENSES TOTAL $1,378,498 $1,554,429 $1,415,320 1,560,215 EXPENSES TOTAL $1,378,498 $1,554,429 $1,415,320 1,560,215 Revenues
Licenses and Permits $2,402,299 $2,911,933 $2,120,000 3,400,000 REVENUES TOTAL $2,402,299 $2,911,933 $2,120,000 3,400,000 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 FY2024 FY2025 FY2026 FY2027
allocation
BUILDING INSPECTOR 3.72 3.72 3.72 3.8
ADMINISTRATIVE ASSISTANT 0.25 0.25 0.25 0.25
SR BUILDING INSPECTOR 0.73 0.73 0.73 0.75
BUILDING OFFICIAL 0 0 0 0.3
ASSIST DIR OF COMMITY DEV 0.2 0.2 0.2 0
OFFICE ASSISTANT 0.25 0.25 0.25 0.25
ALLOCATION 5.15 5.15 5.15 5.35
Staff time is being reallocated to better reflect actual time spent in this program.
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 325
City of Cupertino FY 2026-27 Adopted Budget
Proposed Budget Book FY 2026-2027 326
Programs
General Building
Building Plan Review
Building Code Enforcement
Muni Code Enforcement
Division Overview
The Building Division protects the health, safety, and welfare of Cupertino’s residents, workers, and visitors by effectively administering and enforcing the city’s building codes and ordinances. The Building Division provides plan reviews, issues permits, conducts field inspections, and offers public information services for new construction projects.
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 an property from fire and other hazards attributed to the built environment; and to provide safety to fire fighters and emergency responders during emergency operations.
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 building 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.
The Building Code Enforcement (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, hurricanes, and other hazards attributed to the built environment. These standards include alteration, repair, removal, and 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 complaint 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.
The Muni 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, unpermitted 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.
Community Development
Building: Division Summary
Proposed Budget Book FY 2026-2027 327
Budget at a Glance
Total Revenues 6,500,000.00
Total Expenditures 5,520,122.00
Total FTE 14.30
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.
Provide a streamlined building plan review system that will ensure plans comply with all applicable state and local codes and ordinances.
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.
Build and maintain a positive working relationship with co-workers, other city employees and the general public using principles of quality customer services.
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 the 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.
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.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 328
Employee Compensation $2,123,504 $2,100,578 $2,247,869 2,163,120 Employee Benefits $960,289 $1,900,411 $1,043,193 994,845 Materials and Supplies $20,342 $18,847 $32,746 44,332
Contract Services $420 $420 – 500
Special Projects $9,974 $3,263 – –
Cost Allocation $1,128,244 $1,025,497 $1,071,530 1,142,325 Other Financing Uses $332,108 $486,328 $515,000 1,175,000 EXPENSES TOTAL $4,574,882 $5,535,343 $4,910,338 5,520,122 EXPENSES TOTAL $4,574,882 $5,535,343 $4,910,338 5,520,122 Revenues
Licenses and Permits $4,381,712 $5,724,077 $4,235,000 6,500,000 REVENUES TOTAL $4,381,712 $5,724,077 $4,235,000 6,500,000 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 FY2024 FY2025 FY2026 FY2027
allocation
DEPUTY BUILDING OFFICIAL 1 1 1 1
MANAGEMENT ANALYST 0.2 0.2 0.2 0.2
PERMIT CENTER MANAGER 0 0 0 0
PERMIT TECHNICIAN 3 3 3 3
BUILDING INSPECTOR 3.92 3.92 3.92 4
ADMINISTRATIVE ASSISTANT 1 1 1 1
SR BUILDING INSPECTOR 0.98 0.98 0.98 1
BUILDING OFFICIAL 1 1 1 1
ASSIST DIR OF COMMITY DEV 1 1 1 0
OFFICE ASSISTANT 1 1 1 1
DIRECTOR OF COMM DEVELOPMENT 0.12 0.12 0.12 0.1
PLAN CHECK ENGINEER 2 2 2 2
ALLOCATION 15.22 15.22 15.22 14.3
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 329
Budget Unit 100-73-713 General Fund - Building - General Building Budget at a Glance
Total Revenues 600,000.00
Total Expenditures 1,001,873.00
Total FTE 2.70
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 attributed 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 $1,001,873 for the General Building program. This represents a decrease of $81,438 (-8.0%) from the FY 2025-26 Adopted Budget. The decrease is primarily due to Employee Compensation and Benefits.
This budget is relatively unchanged from the prior fiscal year.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $449,645 $435,393 $458,984 385,521 Community Development
General Building
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 330
Employee Benefits $189,829 $385,220 $206,505 180,260
Materials and Supplies $6,005 $6,289 $10,498 19,707
Contract Services $420 $420 – 500
Special Projects $856 – – –
Cost Allocation $269,096 $375,646 $407,324 415,885
EXPENSES TOTAL $915,851 $1,202,968 $1,083,311 1,001,873 EXPENSES TOTAL $915,851 $1,202,968 $1,083,311 1,001,873 Revenues
Licenses and Permits $345,319 $511,183 $315,000 600,000 REVENUES TOTAL $345,319 $511,183 $315,000 600,000
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 FY2024 FY2025 FY2026 FY2027
allocation
DEPUTY BUILDING OFFICIAL 0.2 0.2 0.2 0.2
MANAGEMENT ANALYST 0.2 0.2 0.2 0.2
PERMIT CENTER MANAGER 0 0 0 0
PERMIT TECHNICIAN 0.6 0.6 0.6 0.6
ADMINISTRATIVE ASSISTANT 0.5 0.5 0.5 0.5
SR BUILDING INSPECTOR 0.2 0.2 0.2 0.2
BUILDING OFFICIAL 0.2 0.2 0.2 0.4
ASSIST DIR OF COMMITY DEV 0.6 0.6 0.6 0
OFFICE ASSISTANT 0.5 0.5 0.5 0.5
DIRECTOR OF COMM DEVELOPMENT 0.12 0.12 0.12 0.1
ALLOCATION 3.12 3.12 3.12 2.7
Staff time is being reallocated to better reflect actual time spent in this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 331
Budget Unit 100-73-714 General Fund - Building - Building Plan Review Budget at a Glance
Total Revenues 2,500,000.00
Total Expenditures 2,883,126.00
Total FTE 6.00
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 approved a budget of $2,883,126 for the Building Plan Review program.
This represents an increase of $541,536 (23.0%) from the FY 2025-26 Adopted Budget.
The increase is due to the execution of new Master Service Agreements and an additional new consultant for Plan Review Services.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Community Development
Building Plan Review
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 332
Expenses
Employee Compensation $1,005,700 $1,032,125 $1,038,717 942,047 Employee Benefits $449,037 $881,651 $471,115 425,789
Materials and Supplies $4,620 $3,568 $11,492 8,497
Special Projects $9,118 $3,263 – –
Cost Allocation $422,138 $371,322 $380,266 406,793
Other Financing Uses $309,238 $407,564 $440,000 1,100,000 EXPENSES TOTAL $2,199,851 $2,699,493 $2,341,590 2,883,126 EXPENSES TOTAL $2,199,851 $2,699,493 $2,341,590 2,883,126 Revenues
Licenses and Permits $1,634,094 $2,300,961 $1,800,000 2,500,000 REVENUES TOTAL $1,634,094 $2,300,961 $1,800,000 2,500,000 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 FY2024 FY2025 FY2026 FY2027
allocation
DEPUTY BUILDING OFFICIAL 0.8 0.8 0.8 0.8
PERMIT CENTER MANAGER 0 0 0 0
PERMIT TECHNICIAN 2.4 2.4 2.4 2.4
ADMINISTRATIVE ASSISTANT 0.25 0.25 0.25 0.25
BUILDING OFFICIAL 0.8 0.8 0.8 0.3
ASSIST DIR OF COMMITY DEV 0.2 0.2 0.2 0
OFFICE ASSISTANT 0.25 0.25 0.25 0.25
PLAN CHECK ENGINEER 2 2 2 2
ALLOCATION 6.7 6.7 6.7 6
Staff time is being reallocated to better reflect actual time spent in this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 333
Budget Unit 100-73-718 General Fund - Building - Muni Code Enforcement Budget at a Glance
Total Revenues –
Total Expenditures 74,908.00
Total FTE 0.25
Program Overview
The Community Development Muni Code Enforcement program provides enforcement of various provisions of the municipal code relating to non-conforming land use and building code compliance. These activities include building without permits, unpermitted 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 $74,908 for the Muni Code Enforcement program.
This represents an increase of $4,791 (6.8%) from the FY 2025-26 Adopted Budget. The increase is primarily due to Employee Compensation and Cost Allocation expenses.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $30,396 $29,904 $35,033 37,627
Employee Benefits $14,864 $29,920 $17,237 17,539
Cost Allocation $35,421 $18,630 $17,847 19,742
EXPENSES TOTAL $80,682 $78,454 $70,117 74,908
EXPENSES TOTAL $80,682 $78,454 $70,117 74,908
Revenues
Community Development
Muni Code Enforcement
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 334
– – – – –
REVENUES TOTAL – – – –
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 FY2024 FY2025 FY2026 FY2027
allocation
BUILDING INSPECTOR 0.2 0.2 0.2 0.2
SR BUILDING INSPECTOR 0.05 0.05 0.05 0.05
ALLOCATION 0.25 0.25 0.25 0.25
There are no changes to the current level of staffing.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 335
Programs
Code Enforcement
Building Abatement
Division Overview
Code enforcement programs aim to ensure compliance with municipal codes, including building, zoning, and safety regulations, to maintain a safe, healthy, and attractive community. 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 County of Santa Clara Sheriff Department in the areas of traffic control and other complaint responses.
The Building Abatement program is an "as-needed only" abatement account which funds remedial actions related to Code Enforcement nuisance cases.
Budget at a Glance
CD: Code Enforcement Division
Total Revenues 228,000.00
Total Expenditures 1,971,393.00
Total FTE 4.18
Service Objectives
Prevent or remove conditions that constitute a public nuisance that can negatively impact residents.
Respond to resident, City department, or outside agency referrals within 48 hours.
Provides 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 Jose.
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.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Community Development
Code Enforcement: Division Summary
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 336
Expenses
Expenses
Employee Compensation $411,059 $372,441 $587,176 680,572 Employee Benefits $217,371 $428,542 $274,095 296,388
Materials and Supplies $6,500 $5,426 $9,798 15,846
Contract Services $330,182 $377,554 $368,960 517,718
Cost Allocation $318,286 $396,748 $433,796 460,869
EXPENSES TOTAL $1,283,398 $1,580,711 $1,673,825 1,971,393 EXPENSES TOTAL $1,283,398 $1,580,711 $1,673,825 1,971,393 Revenues
Fines and Forfeitures $261,300 $258,437 $225,000 228,000 Charges for Services $15,818 $23,748 $20,000 –
REVENUES TOTAL $277,118 $282,185 $245,000 228,000
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 FY2024 FY2025 FY2026 FY2027
allocation
CODE ENFORCEMENT OFFICER 2 2 2 2
SR CODE ENFORCEMENT OFFICER 2 2 1 1
CODE ENFORCEMENT SUPERVISOR 0 0 1 1
DIRECTOR OF COMM DEVELOPMENT 0 0 0 0.18
ALLOCATION 4 4 4 4.18
Staff time is being reallocated to better reflect actual time spent in this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 337
Budget Unit 100-74-202 General Fund - Code Enforcement - Code Enforcement Budget at a Glance
Total Revenues 228,000.00
Total Expenditures 1,971,393.00
Total FTE 4.18
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 $1,971,393 for the Code Enforcement program. This represents an increase of $317,568 (19%) from the FY2025-26 Adopted Budget. The increase is primarily due to Contract Services and Employee Compensation.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $411,059 $372,441 $587,176 680,572 Employee Benefits $217,371 $428,542 $274,095 296,388
Materials and Supplies $6,500 $5,426 $9,798 15,846
Contract Services $330,182 $376,210 $348,960 517,718
Cost Allocation $318,286 $396,748 $433,796 460,869
EXPENSES TOTAL $1,283,398 $1,579,367 $1,653,825 1,971,393 EXPENSES TOTAL $1,283,398 $1,579,367 $1,653,825 1,971,393 Community Development
Code Enforcement
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 338
Revenues
Fines and Forfeitures $261,300 $258,437 $225,000 228,000 Charges for Services $15,818 $23,748 $20,000 –
REVENUES TOTAL $277,118 $282,185 $245,000 228,000
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 FY2024 FY2025 FY2026 FY2027
allocation
CODE ENFORCEMENT OFFICER 2 2 2 2
SR CODE ENFORCEMENT OFFICER 2 2 1 1
CODE ENFORCEMENT SUPERVISOR 0 0 1 1
DIRECTOR OF COMM DEVELOPMENT 0 0 0 0.18
ALLOCATION 4 4 4 4.18
Staff time is being reallocated to better reflect actual time spent in this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 339
Budget Unit 100-74-716 General Fund - Code Enforcement - Building Abatement Budget at a Glance
Total Revenues –
Total Expenditures –
Total 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 attractive 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
There is no budget requested for this program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Contract Services – $1,344 $20,000 –
EXPENSES TOTAL – $1,344 $20,000 –
EXPENSES TOTAL – $1,344 $20,000 –
Revenues
– – – – –
Community Development
Building Abatement
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 340
REVENUES TOTAL – – – –
Staffing
There is no staffing associated with this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 341
Budget Unit 100-72-720 General Fund - Housing Services - Support for the Unhoused Budget at a Glance
CD: Support for the Unhoused
Total Revenues –
Total Expenditures 25,000.00
Total FTE –
Program Overview
Provide intensive case management and social services for the unhoused population with the ultimate goal of helping them secure permanent housing and to mitigate the struggles faced by those struggling to find or maintain shelter.
Service Objectives
Address people who are critically endangered of experiencing homelessness, such as unstably housed, or already sheltering in their cars.
Enact direct interventions to build a safety net.
Connect them with coordinating agencies.
Find housing.
Proposed Budget
It is recommended that City Council approve a budget of $25,000 for the Support for the Unhoused program.
This represents a decrease of $75,000 (-75%) from the FY 2025-26 Adopted Budget. The decrease is primarily due to the introduction of city work program in the prior fiscal year.
Revenue and Expenditures
The following table details revenues and expenditures by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year.
Community Development
Support for the Unhoused
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 342
Expenses
Expenses
Contract Services – – – 25,000
Special Projects – – $100,000 –
EXPENSES TOTAL – – $100,000 25,000
EXPENSES TOTAL – – $100,000 25,000
Revenues
– – – – –
REVENUES TOTAL – – – –
Staffing
There is no staffing associated with this program.
City of Cupertino FY 2026-27 Adopted Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 343
Programs
CDBG General Admin
CDBG Captial/Housing Projects
CDBG Public Service Grants
BMR Affordable Housing Fund
Human Service Grants
Support for the Unhoused
Division Overview
The Community Development Block Grant program is a federal entitlement program which serves low- and moderate-income Cupertino Residents. The Community Development Block Grant General Administration program is reserved for program administration costs to cover salary and benefits of staff who operate the CDBG program. CDBG program administration costs represent 20% of the City’s annual federal CDBG allocation plus prior year program income.
The Community Development Block Grant Capital/Housing Projects 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.
The Community Development Block Grant Public Service Grant program is reserved for grants to non-profit 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.
The Below Market Rate (BMR) Affordable Housing Fund is designed to assist very-low and low-income households. BMR rental units are made available to very-low and low-income households. BMR purchase units are made available to median- and moderate-income households.
The Human Service Grants program supports non-profit agencies providing service to low- and moderateincome Cupertino residents. Eligible programs include senior services, homeless services, and others that serve low- and moderate-income residents.
The Support for the Unhoused program provides intensive case management and social services for the unhoused population, with the ultimate goal of helping them secure permanent housing and to mitigate struggles faced by those struggling to find or maintain shelter. Other aspects of the program include reviewing transitional housing outcomes and analyzing RV practices in surrounding cities for impacts and potential adoption
Budget at a Glance
Community Development
Housing Services: Division Summary
Proposed Budget Book FY 2026-2027 344
Total Revenues 5,077,226.00
Total Expenditures 997,967.00
Total FTE 1.15
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 Manua (Housing Mitigation Manual) 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 reimbursement 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.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $116,591 $83,811 $110,172 157,878 Employee Benefits $73,968 $122,082 $53,727 60,397
Materials and Supplies $617,578 $612,473 $833,514 525,021 Contract Services $7,577 $53,960 $21,300 248,000
Special Projects $50,085 $510 $350,000 –
Cost Allocation $101,048 $107,678 $23,871 6,671
EXPENSES TOTAL $966,847 $980,514 $1,392,584 997,967
EXPENSES TOTAL $966,847 $980,514 $1,392,584 997,967
Revenues
Other Taxes – $457,847 $4,532,926 4,532,926
Use of Money $29,535 $30,180 $7,944 8,000
Transfers In – $53,570 – –
Intergovernmental $243,777 $241,797 $459,523 535,400
Miscellaneous Revenue $50,000 – – 900
REVENUES TOTAL $323,312 $783,394 $5,000,393 5,077,226
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 FY2024 FY2025 FY2026 FY2027
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 345
position_title FY2024 FY2025 FY2026 FY2027
allocation
ASSISTANT PLANNER 0.9 0 0 0
PLANNING MANAGER 0.8 1 0 0
SENIOR HOUSING COORDINATOR 0 0.7 0.45 0.45
ASSISTANT HOUSING COORDINATOR 0 0 0.45 0.7
ALLOCATION 1.7 1.7 0.9 1.15
Staff time is being reallocated to better reflect actual time spent in this program City of Cupertino FY 2026-27 Proposed Budget
Proposed Budget Book FY 2026-2027 346
Budget Unit 100-72-712 General Fund - Housing Services - Human Service Grants Budget at a Glance
Total Revenues 125,000.00
Total Expenditures 131,671.00
Total FTE –
Program Overview
The City of Cupertino sets aside $125,000 annually 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 $138,671 for the Human Services Grants program.
This represents an increase of $83,056 (149%) from the FY 2025-26 Adopted Budget. The increase is primarily due to the previous year being under budgeted.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Materials and Supplies $122,135 $127,719 $50,000 125,000 Cost Allocation $5,140 $5,496 $5,615 6,671
EXPENSES TOTAL $127,275 $133,215 $55,615 131,671
EXPENSES TOTAL $127,275 $133,215 $55,615 131,671
Community Development
Human Service Grants
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 347
Revenues
Intergovernmental – – $50,000 125,000
REVENUES TOTAL – – $50,000 125,000
Staffing
There is no staffing associated with this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 348
Budget Unit 260-72-707 CDBG - Housing Services - CDBG General Admin Budget at a Glance
Total Revenues 77,400.00
Total Expenditures 114,301.00
Total FTE 0.60
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 $114,301 for the CDBG General Administration program. This represents an increase of $41,606 (57%) from the FY 2025-26 Adopted Budget. The increase is primarily due to Employee Compensation and Benefits.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $12,955 $23,946 $48,965 82,705
Employee Benefits $18,249 $48,941 $23,730 31,596
Community Development
CDBG General Admin
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 349
Materials and Supplies $22,952 $27,503 – –
Contract Services – $40,338 – –
EXPENSES TOTAL $54,155 $140,727 $72,695 114,301
EXPENSES TOTAL $54,155 $140,727 $72,695 114,301
Revenues
Transfers In – $53,570 – –
Intergovernmental $46,213 $28,309 $77,400 77,400
REVENUES TOTAL $46,213 $81,879 $77,400 77,400
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 FY2024 FY2025 FY2026 FY2027
allocation
ASSISTANT PLANNER 0.1 0 0 0
PLANNING MANAGER 0.39 0.5 0 0
SENIOR HOUSING COORDINATOR 0 0.2 0.2 0.25
ASSISTANT HOUSING COORDINATOR 0 0 0.2 0.35
ALLOCATION 0.49 0.7 0.4 0.6
Staff time is being reallocated to better reflect actual time spent in this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 350
Budget Unit 260-72-709 CDBG - Housing Services - CDBG Capital/Housing Projects Budget at a Glance
Total Revenues 283,000.00
Total Expenditures 281,500.00
Total 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 $281,500 for the CDBG Capital/Housing Projects program. This represents a decrease of $77,967 (-22%) from the FY 2025-26 Adopted Budget. The decrease is primarily due to the completion of the CDBG Senior Center Fire Alarm project.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Community Development
CDBG Capital/Housing Projects
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 351
Expenses
Expenses
Materials and Supplies $92,536 $96,238 $359,467 281,500 EXPENSES TOTAL $92,536 $96,238 $359,467 281,500
EXPENSES TOTAL $92,536 $96,238 $359,467 281,500
Revenues
Use of Money $29,535 $30,180 $7,944 8,000
Intergovernmental $92,536 $103,813 $274,123 275,000
REVENUES TOTAL $122,071 $133,993 $282,067 283,000
Staffing
There is no staffing associated with this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 352
Budget Unit 260-72-710 CDBG - Housing Services - CDBG Public Service Grants Budget at a Glance
Total Revenues 58,000.00
Total Expenditures 58,000.00
Total 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 budget is relatively unchanged from the prior fiscal year Adopted Budget.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Materials and Supplies $55,028 $27,060 $58,000 58,000
EXPENSES TOTAL $55,028 $27,060 $58,000 58,000
EXPENSES TOTAL $55,028 $27,060 $58,000 58,000
Community Development
CDBG Public Service Grants
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 353
Revenues
Intergovernmental $55,028 $59,676 $58,000 58,000
REVENUES TOTAL $55,028 $59,676 $58,000 58,000
Staffing
There is no staffing associated with this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 354
Budget Unit 265-72-711 BMR Housing - Housing Services - BMR Affordable Housing Fund Budget at a Glance
Total Revenues 4,533,826.00
Total Expenditures 387,495.00
Total FTE 0.55
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 $387,495 for the BMR Affordable Housing Fund program. This represents a decrease of $359,312 (-48%) from the FY 2025-26 Adopted Budget. The decrease is primarily due to realignment of Conference and Meeting expenses and Membership Dues to the correct program. Offset by an increase in contract services due to a new multi-year contract for the BMR AHF Affordable Placement Program.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $103,636 $59,865 $61,207 75,173
Employee Benefits $55,719 $73,142 $29,997 28,801
Community Development
BMR Affordable Housing Fund
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 355
Materials and Supplies $324,927 $333,954 $366,047 60,521 Contract Services $7,577 $13,622 $21,300 223,000
Special Projects $50,085 $510 $250,000 –
Cost Allocation $95,908 $102,182 $18,256 –
EXPENSES TOTAL $637,853 $583,274 $746,807 387,495
EXPENSES TOTAL $637,853 $583,274 $746,807 387,495
Revenues
Other Taxes – $457,847 $4,532,926 4,532,926
Intergovernmental $50,000 $50,000 – –
Miscellaneous Revenue $50,000 – – 900
REVENUES TOTAL $100,000 $507,847 $4,532,926 4,533,826
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 FY2024 FY2025 FY2026 FY2027
allocation
ASSISTANT PLANNER 0.8 0 0 0
PLANNING MANAGER 0.41 0.5 0 0
SENIOR HOUSING COORDINATOR 0 0.5 0.25 0.2
ASSISTANT HOUSING COORDINATOR 0 0 0.25 0.35
ALLOCATION 1.21 1 0.5 0.55
Staff time is being reallocated to better reflect the actual time spent in this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 356
Planning
Current Planning
Mid and Long Term Planning
Economic Development
Division Overview
The Planning Division is responsible for overseeing all planning activities and operations. It provides efficient and responsive professional planning services to the community and implements City development policies, programs, and regulations. The primary responsibilities of the Planning Division are to assist the community to plan and foresee future land uses and policies and to review current development proposals for conformance with the City’s adopted policies and ordinances. The Planning Division administers land use regulations while striving to enhance the livability of Cupertino by fostering a healthy, prosperous and sustainable community environment.
The Current Planning program reviews projects, implements City ordinances, land use plans and General Plan goals and objectives through the planning review and building plan check processes.
The Mid and Long Term Planning program division 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.
Budget at a Glance
Total Revenues 1,975,050.00
Total Expenditures 4,767,306.00
Total FTE 12.85
Service Objectives
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.
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.
Review and amend the City’s General Plan, Housing Element, and Municipal Code, including the Zoning Ordinance, Specific, Conceptual and Master Plans.
Community Development
Planning: Division Summary
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 357
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.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $1,052,287 $1,466,626 $1,857,318 2,072,030 Employee Benefits $523,187 $1,496,667 $732,748 772,890
Materials and Supplies $4,172 $20,533 $24,988 22,083
Contract Services $170,877 $37,892 $7,720 56,240
Special Projects $765,488 $131,476 $260,000 –
Cost Allocation $1,229,962 $1,231,337 $1,080,080 1,177,063 Other Financing Uses $149,969 $283,082 $550,000 667,000 EXPENSES TOTAL $3,895,941 $4,667,612 $4,512,854 4,767,306 EXPENSES TOTAL $3,895,941 $4,667,612 $4,512,854 4,767,306 Revenues
Revenues – $13,900 $5,000 –
Intergovernmental $300,000 – – –
Charges for Services $952,524 $1,377,158 $1,547,000 1,553,000 Miscellaneous Revenue $19,331 $27,493 $55,050 55,050
Other Financing Sources $127,037 $183,288 $367,000 367,000 REVENUES TOTAL $1,398,891 $1,601,840 $1,974,050 1,975,050 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 FY2024 FY2025 FY2026 FY2027
allocation
SENIOR PLANNER 1.9 1.9 2.9 2.9
MANAGEMENT ANALYST 0.6 0.6 0.6 0.6
PERMIT TECHNICIAN 1 1 1 1
PLANNING MANAGER 1.1 1 1 0.7
ASSISTANT HOUSING COORDINATOR 0 0 0.4 0.25
ADMINISTRATIVE ASSISTANT 0.75 0.75 0.75 0.75
ASSISTANT PLANNER 2.1 2 2 3
ASSOCIATE PLANNER 5 5 3 2
ASSIST DIR OF COMMITY DEV 0 0 0 0.8
DIRECTOR OF COMM DEVELOPMENT 0.52 0.52 0.52 0.4
ECONOMIC DEVELOPMENT MANAGER 0 0 0 0
SENIOR HOUSING COORDINATOR 0 0.1 0.4 0.45
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 358
position_title FY2024 FY2025 FY2026 FY2027
ALLOCATION 12.97 12.87 12.57 12.85
Staff time is being reallocated to better reflect actual time spent in this division.
City of Cupertino FY 2026-27 Proposed Budget
Proposed Budget Book FY 2026-2027 359
Budget Unit 100-71-701 General Fund - Planning - Current Planning Budget at a Glance
Total Revenues 1,896,300.00
Total Expenditures 3,771,785.00
Total FTE 9.85
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 $3,771,785 for the Current Planning program. This represents an increase of $145,677 (4.0%) from the FY 2025-26 Adopted Budget. This budget is relatively unchanged from the prior fiscal year Adopted Budget.
The budget includes requests for the following program items:
Additional appropriations for On-call Design Review - $35,000 Additional appropriations for On-call Environmental Review - $82,000 Revenue and Expenditures
The following table details revenues and expenditures 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.
Community Development
Current Planning
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 360
Expenses
Expenses
Employee Compensation $696,297 $897,935 $1,364,294 1,518,013 Employee Benefits $360,086 $948,071 $545,956 569,127
Materials and Supplies $2,792 $3,333 $16,055 18,003
Contract Services $170,877 $9,943 $220 37,740
Special Projects $79,473 $6,181 $260,000 –
Cost Allocation $879,776 $858,671 $889,583 961,902
Other Financing Uses $149,969 $283,082 $550,000 667,000 EXPENSES TOTAL $2,339,269 $3,007,215 $3,626,108 3,771,785 EXPENSES TOTAL $2,339,269 $3,007,215 $3,626,108 3,771,785 Revenues
Charges for Services $895,566 $1,295,598 $1,502,000 1,503,000 Miscellaneous Revenue $19,331 $27,493 $51,300 51,300
Other Financing Sources $127,037 $183,288 $342,000 342,000 REVENUES TOTAL $1,041,933 $1,506,379 $1,895,300 1,896,300 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 FY2024 FY2025 FY2026 FY2027
allocation
SENIOR PLANNER 1.35 1.35 1.95 1.8
MANAGEMENT ANALYST 0.4 0.4 0.4 0.4
PERMIT TECHNICIAN 1 1 1 1
PLANNING MANAGER 0.5 0.4 0.4 0.35
ASSISTANT HOUSING COORDINATOR 0 0 0.4 0.25
ADMINISTRATIVE ASSISTANT 0.6 0.6 0.6 0.6
ASSISTANT PLANNER 2.1 2 2 3
ASSOCIATE PLANNER 3.25 3.25 2.2 1.4
ASSIST DIR OF COMMITY DEV 0 0 0 0.4
DIRECTOR OF COMM DEVELOPMENT 0.28 0.28 0.28 0.2
SENIOR HOUSING COORDINATOR 0 0.1 0.4 0.45
ALLOCATION 9.48 9.38 9.63 9.85
Staff time is being reallocated to better reflect actual time spent in this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 361
Budget Unit 100-71-702 General Fund - Planning - Mid and Long Term Planning Budget at a Glance
Total Revenues 78,750.00
Total Expenditures 995,521.00
Total FTE 3.00
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 $995,521 for the Mid and Long Term Planning program. This represents an increase of $108,775 (12.3%) from the FY 2025-26 Adopted Budget. The increase is primarily due to cost allocation and salaries and benefits.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation $355,990 $373,800 $493,024 554,017 Employee Benefits $163,101 $374,444 $186,792 203,763
Community Development
Mid and Long Term Planning
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 362
Materials and Supplies $1,379 $683 $8,933 4,080
Contract Services – – $7,500 18,500
Special Projects $686,015 $125,295 – –
Cost Allocation $350,186 $199,844 $190,497 215,161
EXPENSES TOTAL $1,556,672 $1,074,066 $886,746 995,521
EXPENSES TOTAL $1,556,672 $1,074,066 $886,746 995,521
Revenues
Revenues – $13,900 $5,000 –
Intergovernmental $300,000 – – –
Charges for Services $56,958 $81,560 $45,000 50,000
Miscellaneous Revenue – – $3,750 3,750
Other Financing Sources – – $25,000 25,000
REVENUES TOTAL $356,958 $95,460 $78,750 78,750
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 FY2024 FY2025 FY2026 FY2027
allocation
SENIOR PLANNER 0.55 0.55 0.95 1.1
MANAGEMENT ANALYST 0.2 0.2 0.2 0.2
PLANNING MANAGER 0.6 0.6 0.6 0.35
ADMINISTRATIVE ASSISTANT 0.15 0.15 0.15 0.15
ASSISTANT PLANNER 0 0 0 0
ASSOCIATE PLANNER 1.75 1.75 0.8 0.6
ASSIST DIR OF COMMITY DEV 0 0 0 0.4
DIRECTOR OF COMM DEVELOPMENT 0.24 0.24 0.24 0.2
ALLOCATION 3.49 3.49 2.94 3
Staff time is being reallocated to better reflect actual time spent in this program.
City of Cupertino FY 2026-27 Proposed Budget
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 363
Budget Unit 100-71-705 General Fund - Planning - Economic Development Budget at a Glance
Total Revenues –
Total Expenditures –
Total FTE –
Program Overview
As part of FY 2025-26 Budget Adoption, this program was moved back to the Administration Department. A complete discussion of the program can be found under Budget Unit 100-12-705.
Revenue and Expenditures
The following table details revenues and expenditures 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.
Expenses
Expenses
Employee Compensation – $194,891 – –
Employee Benefits – $174,152 – –
Materials and Supplies – $16,517 – –
Contract Services – $27,949 – –
Cost Allocation – $172,822 – –
EXPENSES TOTAL – $586,331 – –
EXPENSES TOTAL – $586,331 – –
Revenues
– – – – –
REVENUES TOTAL – – – –
Proposed Budget
There is no budget requested for this program
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 FY2024 FY2025 FY2026 FY2027
Community Development
Economic Development
PROPOSED
FY2027
ACTUAL ADOPTED PROPOSED
FY2024 FY2025 FY2026 FY2027
Proposed Budget Book FY 2026-2027 364
position_title FY2024 FY2025 FY2026 FY2027
allocation
ECONOMIC DEVELOPMENT MANAGER 0 0 0 0
ALLOCATION 0 0 0 0
Due to the reorganization of this program to the Administration Department, positions within the program have been transferred accordingly.
City of Cupertino FY 2026-27 Proposed Budget
Proposed Budget Book FY 2026-2027 365
Budget Units
Public Works Budget Units
Expenses
PW Administration 1,190,552
Environmental Programs 4,881,890
Developmental Services 2,807,940
Service Center 1,070,258
Grounds 6,333,922
Streets 9,941,021
Trees and Right of Way 4,942,301
Facilities and Fleet 6,011,082
Transportation 9,211,230
Citywide - Non Departmental 914,738
EXPENSES TOTAL 47,304,934
Budget at a glance
PW budget at a glance
Total Revenues 17,598,964.00
Total Expenditures 47,304,934.00
Total FTE 89.52
Organization
Chad Mosley, Director of Public Works
Public Works
Department Overview
PROPOSED BUDGET
FY2027
PROPOSED
FY2027
Proposed Budget Book FY 2026-2027 366
Increase in staffing is due to reallocation of 0.5 FTE Management Analyst to support Capital Improvement Projects. Additionally, 1.0 FTE of Building Inspectors was removed from Public Works as these services are now performed internally by the Public Works Department.
Notable accomplishments
Transportation
The new Lawson Middle School Bikeway Project was completed in the summer of FY 2025. This new, twoway separated bike path along the school’s frontage provides a safe and convenient way for students to get to the campus bike cages without crossing lanes of car traffic. The project, which resulted from a successful partnership between the City, Lawson Middle School, the Cupertino Union School District, and the local community, is the City’s first two-way, on-street separated bike path. Funding for the project was provided entirely by Apple through their donation to the City’s Walk Audit project list.
Transportation Division staff have created an on-line Collision Dashboard that provides comprehensive access to reported traffic collision data from 2018 through 2024, as well as a Traffic Flow Map that offers valuable insights into travel patterns by displaying Average Daily Traffic (ADT) volumes along with 16-hour bicycle and pedestrian counts across city streets. Together, these tools provide transparency and empower residents, stakeholders, and policymakers with accessible, reliable information to understand roadway safety and travel patterns, and will be updated regularly as new data becomes available. 12th annual Cupertino Fall Bike Fest- On Saturday, September 27, Safe Routes to School hosted the 12th annual Cupertino Fall Bike Fest at City Hall Plaza. The plaza was abuzz with more than 30 bike-related activities organized by local bike and environmental organizations, including 2 community bike rides and a Proposed Budget Book FY 2026-2027 367
new Little Loop for the youngest riders. The 750+ community members who attended collectively biked over 1300 miles during the festival!
Bicycle and Pedestrian Safety Grant Funding – The Transportation Division received a $184,000 grant from the California Office of Transportation Safety (OTS) to enhance its Safe Routes to School (SR2S) Bicycle and Pedestrian Safety Program. The initiative, running through September 2026, aims to promote safe walking and biking practices and raise awareness among drivers to be mindful of pedestrians and cyclists.
The grant will fund several activities, including pedestrian and bicycle safety training, helmet distribution and fitting, and community and school presentations on safety. Oversized Vehicle Online Parking Permit module went online for residents in October 2025. Public Works, Information and Technology and Code Enforcement staff collaborated to produce this easy-to-use website for residents to obtain their free parking permits.
The Stevens Creek Corridor Vision Study was presented to City Council in September 2025, and the City Council conditionally accepted the study. Council clarified the conditions that need to be met before any future Cupertino support for the project.
The Wolfe Rd/I-280 project is a VTA lead initiative to improve the interchange at this intersection. The project required additional funding in order for construction to be initiated. Public Works staff worked directly with Apple to secure the outstanding funds needed to initiate the project. Apple donated and $2.6M dollars, and worked with the City to reallocate an additional $1.4M dollars of funding towards the interchange project to address the funding gap.
Sustainability and Environmental
Compliance activities – Division staff worked with GIS to digitize two stormwater inspection forms for the IND and IDDE programs. Staff will begin using the new digital forms along with the paper forms this fiscal year to make sure everything that is required in the annual stormwater report to the Water Board is being captured. In FY 26-27, only the digital forms will be used, which will lead to staff time efficiency SB 1383 update - Staff continued working with Recology staff to conduct routine visits to nearly 700 businesses as well as help many residents with general sorting questions and education on best practices for separating food scraps. Over 100 kitchen pails were given to residents to assist with their organic waste diversion efforts. City staff and Recology also partnered with De Anza College and CUSD schools to help move them into compliance with SB 1383 requirements.
Garage Sale - Hosted the Citywide Garage Sale on September 28 & 29 with over 165 homes participating, over 4,000 views on the online map, and many buyers from all over the Bay Area.
Environmental Recycling and Paper Shredding Events - Staff collaborates with Recology to host four opportunities per year for residents to drop off difficult-to-recycle materials such as e-waste, appliances, yard waste, and confidential documents at no extra cost.
Coat Collection - Collaborated with Recology and the Cupertino Library to collect over 5 barrels of new and gently used coats and jackets, which were donated to Sacred Heart Community Services to provide warmth to those in need.
Community Composting Classes - Staff coordinated with the UC Cooperative Extension to host two backyard compost classes for residents to learn how to build compost piles, vermicompost, and apply the compost in their own garden or landscape. Residents who attend a workshop are eligible to receive a free compost or worm bin upon request. 12 bins were delivered.
Compliance activities - To comply with stormwater pollution prevention regulations, the City will conduct 110 preventative Industrial and Commercial Site Controls (IND) stormwater inspections. In FY 25-26 staff responded to and resolved 35 reports of discharges and threats of discharge to the storm drain system for the Illicit Discharge Detection and Elimination (IDDE) program.
Compliance activities - The City of Cupertino reached its stormwater permit requirement of 100 percent trash load reduction. This was the result of over 15 years of concentrated effort across multiple divisions and departments. To meet this requirement the city conducted commercial and industrial stormwater inspections, created and implemented a Private Lands Drainage Area (PLDA) program, conducted antilitter education and outreach, and installed over 200 full trash capture devices in the city’s stormwater inlets along roads and at city facilities.
Creek Cleanups - Hosted a site at Wilson Park for Coastal Cleanup Day on September 20, 20255 with over thirty-two volunteers and a total of 80 pounds of trash and debris removed. The next event will be National Proposed Budget Book FY 2026-2027 368
River Clean Up Day in May 2026.
City Work Program Electrification Study – Sustainability staff prepared a memo to Council that was released on January 30, 2026, which detailed the policy options for decarbonizing existing buildings.
During the research phase of the electrification study, at their June 16, 2025 meeting, Sustainability Commissioners provided their recommendation to create a program to enact energy benchmarking and building performance standards.
Utility use and cost tracking - Contracted with a new utility management software called Nimble Energy to track over 400 monthly water and energy bills and streamline the payment process with the Finance Division.
Completed an analysis of City’s permitting process, educational efforts, and best practices to promote electric vehicles in comparison to other jurisdictions nationwide. Awarded Goal Level from “Charge Smart Cohort”
Reviewed 24 planning applications to track green development efforts citywide.
Updated the data and completed a report to track progress towards the City’s greenhouse gas reduction.
LED Streetlight conversion – Supported CIP project to transition streetlights to LED by providing data and managing the PG&E accounts. Applied for grant funding to offset the City’s cost.
Photovoltaics installation – Supported the CIP project to install new PV by providing data about current energy usage and calculated potential savings.
Electrical vehicle chargers at the service center – Supported the facilities project to install EV Charging infrastructure by providing data and applying for and receiving grant funding.
Access to CRV Redemption - Continued partnership with Recycletek, which operates an AI- assisted California Redemption Value (CRV) recycling EcoTrailer designed to make getting the five, ten, or twentyfive cents back per container easier. The trailer operates two days a week in Cupertino, at Creekside Park and Mary Avenue. From July 2025- March 2026, Recycletek has recycled over 1,335,463 containers.
Plan reviews - To comply with debris management, sustainability, and stormwater regulations, the division has conducted 537 reviews of building and demolition permits. If trends continue, staff expect to review about 800 plan reviews during the year.
Development Services
Between January 1, 2025 and December 31, 2025, 116 development applications and 501 encroachment permit applications were received and processed. Additionally, 686 customer visits were registered at the Public Works counter.
Notably, Staff assisted in the plan review and approval of the following planning permit applications:
20840 Stevens Creek Blvd (Staples Redevelopment Project) – 59 residential units 10065 E Estates Dr (Idlewild Project) – 55 residential units 20045 & 20065 Stevens Creek Blvd (Dividend Homes Project) – 32 residential units An ordinance regulating Small Wireless Facilities in the Public Right of Way was adopted by City Council in October 2025. The adoption of the ordinance was the culmination of multi-year City Work Program project to better define siting requirements for wireless providers.
CIP
The following CIP projects were completed this year:
All-Inclusive Play Area & Adult-Assistive Bathroom Facility at Jollyman Park City Lighting LED improvements
Bridge Preventative Maintenance Program (BPMP)
FCA: Senior Center Fire Alarm System Upgrade
FCA: Quinlan Community Center Chiller replacement
The construction of the following CIP projects is scheduled to be completed by fiscal year’s end:
FCA: Quinlan Community Center HVAC controls upgrade
FCA: Quinlan Community Center and Sports Center flat roofs replacements Stevens Creek Blvd. Class IV Bikeway, Phase 2A
Streets
Proposed Budget Book FY 2026-2027 369
Replaced 52 Streets light poles that where 30 years or older throughout the city. The replacement focused on steel pole which have known failures from corrosion and rusting.
Cupertino is enhancing street safety and sustainability through citywide upgrades to streetlight poles and fixtures. The city completed the replacement of 2000 + L.E.D. streetlight fixtures.
Restripe the parking lots at City Hall and the Quinlin Community Center to improve safety and enhance parking space visibility.
9 major intersections were refreshed with new paint to enhance safety and improve visibility Assisted with the implementation of bike lanes at Lawson Middle School to improve safety and accessibility for students commuting to and from school.
Assisted the Parks and Recreation Department with traffic control operations for festivals throughout the year, ensuring safe and efficient movement for attendees, staff, and vehicles Cleaned and maintained over 1,200 storm drains throughout the year to ensure proper drainage Grounds
Backflow Device Replacement: Replaced 6-inch fire service reduced pressure (RP) assembly at Creekside Park, a 3-inch irrigation RP replacement at Lincoln Elementary School, and two 4-inch irrigation RP assemblies at Kennedy Middle School. The replacements are part of the City’s ongoing program to upgrade and replace devices that do not meet the State’s current regulatory standards.
Installation of BBQ: A new large adjustable barbecue grill and serving table were added to the picnic site at Portal Park. The added amenities provide enhanced functionality and convenience for park visitors, making the space more accommodating for gatherings of all sizes. These improvements support a wider range of recreational activities, encourage community use, and improve the overall visitor experience. The upgraded site promotes social interaction, family-friendly outings, and greater utilization of public park facilities, contributing to a more vibrant and accessible community space.
Trees/ROW
RFP for Urban Forest Master Plan developed and advertised CWP Item (PW-26-009) Installed wooden retaining wall on Stevens Creek Blvd from Foothill Blvd. to Janice Ave South side of road Converted irrigation at Rainbow Dr. and DeAnza Blvd to drip from overhead watering.
The Annual Tree Planting event will take place with Girl Scout Troop 60432 on May 23rd at Stevens Creek Elementary. 6 Silver Linden Trees will be planted.
Removed trail improvements north of Stevens Creek Blvd
Removed 93 dead dying or hazardous trees
Planted 119 Street trees
Trimmed 2709 street trees
Provided 762 Tree Care services (tree care treatments or advanced tree health care services) Responded to 131 tree limb failures and 13 whole tree failures Junnie Hemann earned his commercial Driver’s License
James Silva earned his Pesticide Applicators License
Service Center
Service Center EV Infrastructure Project – Completed design and bid that included the installation of EV charging infrastructure at the City Service Center for exclusive use by City-owned fleet vehicles. The project will install nine (9) Level 2 and one (1) DC Fast EV charging stations along with transformers, panelboards, main switchboard, and electrical conduits.
Sports Center and Quinlan Community Center Roofing System Replacement Project – Completed design and bid to replace the existing roofing system that has surpassed its useful life at both facilities to protect and building’s structure and ensure uninterrupted delivery of community services.
Facilities & Fleet
Fleet - Replaced compressor; purchased two EVs with three additional vehicles on order; received five EV wall chargers from Ford through a rebate program.
Replaced the fleet compressor to improve the reliability and efficiency of maintenance operations at the Proposed Budget Book FY 2026-2027 370
Service Center. Purchased and pending delivery of electric vehicles to support the City’s transition toward a lower-emission fleet and reduces long-term fuel and maintenance costs. Secured five EV wall chargers through a Ford rebate program to expand charging infrastructure while minimizing capital costs to the city.
Senior Center
Gutter Replacement at Senior Center - Replaced aging gutters to protect the building from water intrusion, dry rot and potential structural damage. This will extend the lifespan of the facility and lowers long-term maintenance costs.
New Projector and Screen at Senior Center - Installed a new projector and screen at the Senior Center to enhance the facility’s ability to host presentations, classes, and community programs. The new equipment improved audiovisual capabilities to create a better experience for both presenters and participants.
Monta Vista
Paint All Buildings - Painted all buildings which refreshed the appearance of the facility and improved protection of exterior surfaces from weathering and deterioration. The new paint enhances the overall appearance of the park and surrounding community space.
Sports Center
EMS/HVAC Controls Upgrade - Upgraded the Energy Management System and HVAC controls to improve system monitoring, efficiency, scheduling, and temperature regulation throughout the facility and reduce operation costs. The new controls enhance occupant comfort while allowing staff to better manage energy use.
Lighting Controls Upgrade - The lighting controls upgrade provides improved automation and scheduling for the building lighting systems. This ensures that the lights operate only when needed, reducing unnecessary energy consumption. The system also provides staff with greater operational control and contributes to long-term energy savings.
Upgrade Racquetball Lighting Fixtures - Replaced outdated racquetball lighting fixtures which significantly improved visibility and lighting consistency within the courts. The upgraded fixtures enhance safety and overall playing conditions for users. The new lighting is also more energy efficient and requires less maintenance.
City Hall
Lower-Level Cubicle Remodel - The lower-level remodel refreshed the workspace and optimized the office layout to better support staff operations. Updated workstation configurations improve productivity and provide a more comfortable work environment.
Planning Department Cubicle Remodel (Lower Level) - The Planning Department cubicle remodel created a more functional and organized workspace for staff. The updated layout supports improved workflow, collaboration, and efficiency within the department. The upgrades also ensure the workspace better meets current operational needs.
Heating Loop Pump Replacement - Replaced the heating loop pump to restore reliable circulation within the building’s heating system. The new pump improved heating performance and ensure consistent temperature control throughout the facility. This upgrade also reduced the likelihood of system failures and helps extend the life of the HVAC system.
New EV Charger on Rodrigues - Installed a new EV charger on Rodrigues to expand electric vehicle charging availability for City staff and visitors. This supports the City’s sustainability initiatives.
Quinlan Community Center (QCC)
Replace 2 EV Chargers - Replaced two EV chargers which restored reliable charging access for facility users and visitors. The upgraded units reduce downtime associated with older equipment.
Two New Chillers - Installed two new chillers to improve the reliability and efficiency of the building’s cooling system. The new equipment provides better temperature control during peak demand periods. The upgrade also reduces energy consumption and long-term maintenance costs.
Heating Loop Pump Replacement - The replacement of the heating loop pump improved the reliability of the building’s heating circulation system. The new pump ensures consistent heating performance and Proposed Budget Book FY 2026-2027 371
reduces the risk of system outages. The replacement helped extend the life of the mechanical system.
Blackberry Farm (BBF)
Pool Pump Replacement - The replacement of the pool pump restored reliable water circulation and filtration for the facility’s aquatic operations. The new pump will improve efficiency and help maintain proper water quality standards. This upgrade also reduces maintenance requirements and supports safe pool operations.
Environmental Education Center (EEC)
Repair Radiant Flooring - Repairing the radiant flooring system restored consistent heating performance within the facility. The repair improved occupant comfort while maintaining the energy efficiency benefits of radiant heating. Addressing the issue early helps prevent more costly structural or system repairs.
Creekside
Fire Hydrant Replacement Project - The replacement of the fire hydrant improved emergency response capability and ensured reliable water access for firefighting operations. The new hydrant meets current safety and operational standards. This project strengthens public safety infrastructure and improves reliability within the water distribution system.
Portal
Closet Reconfiguration - Reconfiguring the closet space improved storage organization and increased the usable space within the facility. The updated layout allows staff to better manage supplies and equipment.
This small improvement enhances functionality and day-to-day operations.
Service Center
Security Keypad Upgrade - Upgrading the security keypad improved access control to the facility and enhances overall building security. The new system provides more reliable operation and improved user management. This upgrade helps protect City assets and ensures only authorized personnel can access restricted areas.
Community Hall
Security Keypad Upgrade - The security keypad upgrade improved access control and enhances safety within the facility. Updated technology provides more reliable operation and easier management of authorized users. The upgrade supports better building security and operational oversight.
New Initiatives
Transportation
E-Bike Education: Safe Routes to School continues to educate the Cupertino community about e-bike safety with a resource page on the website and a community presentation on what to know before buying an e-bike hosted in May 2026. The popular Middle School Bike Skills (MSBS) classes offered over the summer teach students (and their parents) biking street safety skills through a classroom presentation, a black top skills drills session, and a road ride. This summer SR2S will offer a new course, MSBS 102, which is a sequel specifically for e-bikes. The focus will be on how riding habits need to change to accommodate the faster, heavier, harder-to-maneuver e-bikes.
Sustainability
Update the Environmentally Preferable Purchasing Policy Resource Recovery
Roll out a community education annual cohort program to engage residents on waste management Non-Point Source/Stormwater
Proposed Budget Book FY 2026-2027 372
Coordinate with Service Center staff on documenting asset management of public green stormwater infrastructure features to comply with the regional permit Performance Measures
Capital Project Delivery
Goal: Develop and deliver projects on time and within budget that serve the resident's needs and support and growth
Benefit: Residents and businesses are assured their community is being improved by insightful, targeted taxes and fees towards maintaining and improving the City's facilities and assets.
Performance Measure
FY 2024
July-June
FY 2025
July-Jun
Percentage of projects completed on budget 100% 100%
Percentage of construction projects completed on time 100% 33% *FY24: 6 projects completed, 6 projects on budget, 6 projects on time; *FY25: 6 projects completed, 6 projects on budget, 2 projects on time *FY26 Q1 & Q2: 3 projects completed, 3 projects on budget, 2 projects on time Environment
Goal: Protect our natural environment for current and future generations.
Benefit: Current and future residents enjoy a healthy, sustainable environment Performance Measure
FY 2024
July-June
FY 20
July-J
Percent of businesses in compliance during annual proactive stormwater pollution prevention inspections 93% 92%
Percent of non-exempt businesses and multi-family accounts separating organics 97% 100%
Percent trash/litter reduction achieved to meet Stormwater Permit requirements
n100% 100%
Diversion rate from all single-family, multi-family, and commercial accounts as reported by Recology tonnage reports 48% 49% Proposed Budget Book FY 2026-2027 373
Respond to reports of actual or potential discharge the same business day
72% 95%
% of plan reviews completed in required number of days 92% 95% Cubic yards of compost distributed via compost site
Quarry: 180
CY SMaRT
Station: 580
CY Compost
45.45 CY
Mulch
Quarry:
CY SMa
Statio
778.18
Compos
CY Mu
% of vegetation obstructions resolved within 15 days from time of report*
Vegetation obstructions being handled by Code beginning August 2023.
68% N/A
*Inspections occur in the spring only
Development Services
Goal: Provide timely review and permitting of privately completed improvements within the public right of Benefit: Customers can expect quality reviews and permitting on a defined schedule, and the community public facilities.
Performance Measure
FY 2024
July-June
FY 2025
July-June
Percent of complete plan submittals or
applications responded to within 2 weeks 88% 59%
Percent of complete encroachment permit
applications responded to within 2 weeks 92% 100%
Proposed Budget Book FY 2026-2027 374
Percent of public inquiries at the Public Works
counter in City Hall responded to within 15
minutes
95% 92%
Cupertino 311: Average response time to
customers organization-wide (in days) N/A 5
Grounds Division
Goal: Provide well maintained, clean, and safe areas for the community’s recreational use and enjoyment costs.