Agenda packet, first session — East Palo Alto City Council, June 17, 2025 (part 1 of 2)

EAST PALO ALTO CITY COUNCIL

REGULAR SESSION AGENDA
Tuesday, June 17, 2025, 6:30 PM
EPA Government Center
2415 University Avenue, First Floor
East Palo Alto, CA 94303
NOTICE
This meeting will be held virtually and in-person at the Council Chambers located on 2415 University Ave, First Floor East Palo Alto, CA 94303. The virtual portion of this City Council meeting will be conducted in accordance with City of East Palo Alto Resolution adopted pursuant to Assembly Bill 361.

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International numbers available: https://zoom.us/u/aMWYF4KT East Palo Alto City Council June 17, 2025 Agenda
1 1. CALL TO ORDER AND ROLL CALL

2. APPROVAL OF THE AGENDA

3. PUBLIC COMMENT

4. PUBLIC HEARINGS

4.1 Adoption of Fiscal Year 2025-26 Budget & Approval of Fiscal Years 2025- 2029 Strategic Plan

4.2 Establishing the Fiscal Year 2025-26 Appropriation Limit

4.3 Cost Allocation Plan and User Fee reports and amendment to City’s Master Fee Schedule
Recommendation:

Convene a public hearing, accept public comment, and take the following actions necessary to adopt the Fiscal Year 2025-26 budget.

1. Approve the City of East Palo Alto Strategic Plan: Four-Year Strategic Priorities (FY 2025-2029) and Two-Year Work Plan FY 2025-2027)

2. Adopt a resolution adopting the Fiscal Year 2025-26 Budget.

1. Establishing the FY 2025-26 Appropriation Limit of $43,188,407;

2. Finding that the Appropriation Limit of $43,188,407 exceeds the Appropriations Subject to Limitation calculated in the amount of $36,058,706 by $7,129,701; therefore, the City of East Palo Alto complies with the provisions of Article XIII B of the State Constitution; and

3. Finds that the action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.

Recommendation:

1. Approving the Cost Allocation Plan and User and Regulatory Fee Study as the basis for amending the Master Fee Schedule;

2. Amending the City’s Master Fee Schedule, based on Cost Allocation Plan and User and Regulatory Fee Study; and
East Palo Alto City Council June 17, 2025 Agenda
2 5. ADJOURN CITY COUNCIL REGULAR MEETING TO THE EAST PALO ALTO

SANITARY DISTRICT BOARD MEETING

6. APROVAL OF THE EPASD BOARD MEETING AGENDA

7. APPROVAL OF EPASD BOARD MEETING CONSENT CALENDAR

7.1 EPASD Cash Disbursement Report for April 2025

8. EPASD PUBLIC HEARING

8.1 Adoption of EPASD FY 2025-26 Proposed Budget

9. EPASD BOARD REPORTS

10. ADJOURN EAST PALO ALTO SANITARY DISTRICT BOARD MEETING AND

RECONVENE CITY COUNCIL REGULAR MEETING

11. ADJOURN CITY COUNCIL REGULAR MEETING TO THE JOINT SUCCESSOR

AGENCY BOARD SPECIAL MEETING

12. JOINT SUCCESSOR AGENCY BOARD PUBLIC HEARING

12.1 Adoption of FY 2025-26 Successor Agency Budget

13. ADJOURN JOINT SUCCESSOR AGENCY BOARD SPECIAL MEETING AND

RECONVENE CITY COUNCIL REGULAR MEETING

14. COUNCIL REPORTS

15. ADJOURNMENT

3. Finding the proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.

Recommendation: Accept the cash disbursement report required pursuant to California Health and Safety Code Section 6794.

Recommendation: Adopt a resolution adopting EPASD FY 2025-26 budget Recommendation: Adopt a Resolution adopting the Fiscal Year 2025-26 Successor Agency Budget
Upcoming meetings:

Special Meeting July 8, 2025 6:30 PM
Regular Meeting July 15, 2025 6:30 PM
Study Session July 29, 2025 6:00 PM
East Palo Alto City Council June 17, 2025 Agenda
3 This AGENDA is posted in accordance with Government Code Section 54954.2(a) This Notice of Availability of Public Records: All public records relating to an open session item which are not exempt from disclosure pursuant to the Public Records Act, that are distributed to the majority of the City Council will be available for public inspection at the City Clerk’s Office, 2415 University Avenue, East Palo Alto, CA at the same time that the public records are distributed or made available to the City Council. Such documents may also be available on the East Palo Alto website www.cityofepa.org subject to staff’s ability to post the documents prior to the meeting. Information may be obtained by calling (650) 853-3100.

The City Council meeting packet may be reviewed by the public in the Library or the City Clerk's Office. Any writings or documents pertaining to an open session item provided to a majority of the City Council less than 72 hours prior to the meeting, shall be made available for public inspection at the front counter at the City Clerk's Office, 2ND Floor, City Hall, 2415 University Avenue, East Palo Alto, California 94303 during normal business hours. Information distributed to the Council at the Council meeting becomes part of the public record. A copy of written material, pictures, etc. should be provided for this purpose.

East Palo Alto City Council Chambers is ADA compliant. Requests for disability related modifications or accommodations, aids or services may be made by a person with a disability to the City Clerk's office at (650) 853-3127 no less than 72 hours prior to the meeting as required by Section 202 of the Americans with Disabilities Act of 1990 and the federal rules and regulations adopted in implementation thereof.

DECLARATION OF POSTING
This Notice is posted in accordance with Government Code §54954.2(a) or §54956. Members of the public can view electronic agendas and staff reports by accessing the City website. Under penalty of perjury, this Agenda was posted to the public at least 72 hours prior to the meeting.

POSTED: July 6, 2025
ATTEST:

James Colin
City Clerk
East Palo Alto City Council June 17, 2025 Agenda
4 Public Hearing 4.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 17, 2025
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
SUBJECT: Adoption of Fiscal Year 2025-26 Budget & Approval of Fiscal Years 2025-2029 Strategic Plan
Recommendation
Convene a public hearing, accept public comment, and take the following actions necessary to adopt the Fiscal Year 2025-26 budget.

1. Approve the City of East Palo Alto Strategic Plan: Four-Year Strategic Priorities (FY 2025-2029) and Two-Year Work Plan FY 2025-2027)

2. Adopt a resolution adopting the Fiscal Year 2025-26 Budget.

3. Commits $20,000,000 of unassigned General Fund reserves for the future acquisition and development of a police department, library, and city hall project. These funds shall be classified as committed fund balance in the City’s financial records, designated exclusively for use on costs associated with the acquisition, construction, and/or tenant improvements of the facility
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
 Promote Housing, Economic and Workforce Development
 Implement the Comprehensive Transportation and Mobility Plan  Promote Health & Public Safety
 Ensure Our Financial and Organizational Health
 Improve the City's Water Infrastructure
 Develop and Implement a Comprehensive Facilities Master Plan 5 Public Hearing 4.1
 Enhance Community Services and Parks for Residents
Background
On May 13 and May 27, 2025, the City Council held two scheduled budget hearing sessions to review the proposed Fiscal Year 2025–2026 Operating and Capital Improvement Budget.

During these sessions, staff provided a comprehensive overview of the budget, including a summary of the City’s fiscal condition, key revenue and expenditure trends, and major policy priorities.

City departments and divisions presented their individual budgets, highlighting significant changes, operational needs, and proposed initiatives for the upcoming fiscal year. The Council also engaged in deliberations informed by detailed budget information, allowing for discussion of service levels, staffing proposals, and funding allocations.

These sessions provided the opportunity for Council to evaluate the budget in full and offer input in advance of formal adoption.

Following these sessions, on June 3, 2025, staff returned to the Council with the recommended FY2025–2029 Strategic Priorities Framework and FY2025–2027 Council Work Plan. Council received results from the second round of community engagement and reviewed a total of 59 proposed projects—consisting of 37 carryforward projects and 22 new initiatives— for potential inclusion in the Work Plan. Staff also presented an overview of the fiscal impact associated with these initiatives, including estimated one-time and ongoing costs across the General Fund and other funding sources. The Strategic Plan document and a detailed Work Plan with tentative timelines are included in attachments 5 and 6 respectively. The budget impacts of the Work Plan projects are discussed in more detail in the Analysis section below.

Analysis
Incorporation of Strategic Priority Projects into the FY2025–26 Budget The following projects were identified and recommended by the City Council for inclusion in the FY2025–26 budget during the Strategic Priorities and Work Plan discussion on June 3, 2025.

These include a combination of carryforward and new initiatives that align with Council priorities and community feedback.

Table 1:
6 Public Hearing 4.1
As summarized in the table above, the addition of these projects results in a net increase of $1,326,610 to the General Fund and $1,145,000 to various special revenue funds, primarily the Measure HH Fund and the Community Services Transient Occupancy Tax (TOT) Fund.

Incorporating these projects increases the projected General Fund deficit for FY2025–26 from $2.1 million to approximately $3.6 million. While many of the carryforward projects have been previously scoped or initiated, several—including the Residential Parking Permit Program—remain highly visible and impactful. The Permit Parking Program, in particular, received significant attention from both community members and Council, generating a wide range of feedback reflecting both support for neighborhood benefits and concerns about implementation and equity. Among the new additions, projects such as the development of a

PROJECT DIVISION/DEPARTMENT GENERAL FUND OTHER FUNDS NOTE

CARRYFORWARD PROJECT
Conclude Measure HH Pilot Evaluation and
Initiate Ongoing Workforce Development
Program
Housing
$ 850,000 Measure HH Fund
Design and Implement a "Pop-Up"/Sidewalk
Vending Policy and Program City Manager's Office
$ 18,000
Establish a Joint-Use Agreement with RCSD for
Shared Recreation Sites Community Services
$ 50,000
Launch a Residential Parking Permit Program Engineering $ 400,000 Update the Environmental Justice Element of
the General Plan Planning
$ 2,000
Update the Safety Element of the General
Plan Planning
$ 2,000
Develop an Asset Management Database Public Works Admin $ 100,000

NEW PROJECT
Implement Sister City and Cultural Exchange
Initiative
Clerk
$ 70,610
Conduct Council Term Limit Policy Research Clerk $ 7,000 Develop a 10-Year Fiscal Strategy and Address
the Structural Deficit Finance
$ 150,000
Implement a Centralized Grants Management
System
Finance
$ 150,000
Expand EPACENTER Services and Programs
Through City Funding Community Services
$ 70,000 Community Service TOT Fund
Expand Access to YMCA Programming and
Services for the Greater East Palo Alto
Community
Community Services
$ 175,000 Community Service TOT Fund
Expand Parking Enforcement Capacity Police $ 350,000
Implement a Shopping Cart Abatement
Program
City Manager's Office
$ 2,000
Maintain Senior/ Disabled Individuals’
Emergency Contact Database Community Services
$ 50,000 Community Service TOT Fund
Update the Inclusionary Housing Ordinance Housing $ 25,000 TOTAL $ 1,326,610 $ 1,145,000
7 Public Hearing 4.1
10-Year Fiscal Strategy and expanded parking enforcement reflect Council’s strategic intent to invest in long-term fiscal sustainability and improved service delivery.

These additions align with the adopted Strategic Priorities and staff believes they can be undertaken within the next two fiscal years considering existing departmental capacity.

Funding some of these projects increases the general fund deficit. Given the City’s structural deficit and the additional appropriations necessary to implement these projects, staff requests that the City Council review project appropriations in Table 1 above, and determine whether to remove or postpone any projects to reduce the deficit.

Additionally, to advance Council’s strategic direction regarding public facilities, staff recommends that the Council take formal action to commit $20 million from the General Fund reserve for the future acquisition of the police department, library and city hall facility.

This formal commitment will enable the City to classify the funds as committed fund balance in accordance with Governmental Accounting Standards, ensuring transparency and accountability in long-term capital planning. While the full cost and financing structure of the project is still under evaluation, this initial commitment reflects the City’s intent to secure a modern, consolidated civic facility that meets future service and space needs. Staff will return to Council with refined funding options and partnership terms as negotiations progress.

Staff will closely monitor expenditures and fiscal performance, and will return to Council with a mid-year budget update to assess implementation progress, evaluate fiscal impacts, and recommend corrective actions if needed to maintain long-term financial stability.

Overview FY2025-26 Budget Summary
The table below summarizes the City’s FY2025-26 proposed budget by fund type. FY 2025-26 total citywide revenues (excluding the Successor Agency) are projected at $77.4 million; $4.0 million less than the FY 2024-25 adopted budget. Total FY 2025-26 citywide expenditures are $63.0 million; approximately $6.0 million less than the FY 2024-25 adopted budget. This results in a proposed budget with a net surplus of $14.4 million. This surplus is driven by positive net positions across all fund types except the General Fund.

The projected fund balances by major fund type are:
 General Fund: -$3.6 million (deficit)
 Restricted Funds: $1.4 million surplus
 Capital Funds: $2.9 million surplus
 Enterprise Funds: $13.8 million surplus
The projected General Fund deficit of $3.6 million reflects a combination of revenue adjustments and increased costs, which are detailed in a subsequent section of this report.

Staff will continue to monitor General Fund performance closely and recommend adjustments as needed to maintain long-term fiscal stability.
8 Public Hearing 4.1
The surpluses in the Restricted and Capital Funds are primarily due to timing differences when revenues are received and when expenditures occur. In many special revenue funds, revenues are collected in before the associated program costs are incurred, resulting in temporary surpluses. In contrast, capital project spending often occurs before the corresponding revenue reimbursements from grant funds are received. However, in FY2025- 26, the $4.5 million in Capital Fund revenue is primarily from developer impact fees, which are collected upfront—creating a surplus for the current fiscal year.

The Enterprise Funds now include the sewer enterprise funds, which account for EPASD financial activities. The surplus in the Enterprise Funds is driven by sewer enterprise fund developer impact fees ($5.9 million), and Water Service Fund impact fees ($5.5 million). As previously noted, the EPASD budget will be reviewed and approved separately by the Board but is included in the City’s overall budget as an enterprise fund.

While the Restricted, Capital, and Enterprise Funds are projected to generate surpluses in the aggregate, several individual funds within these categories are projected to operate at a deficit and require supplemental funding to balance. Including the General Fund, staff recommends the use of available reserve balances totaling $9,251,160 to close projected shortfalls in FY2025–26. These reserves will be applied to support General Fund operations, as well as to backfill deficits in select Capital, Enterprise, and Restricted Funds. Staff affirms that sufficient reserves are available and that their use is consistent with the City’s adopted financial policies and responsible fiscal management practices.

More detailed information is available in Attachments 3 and 4.

General Fund Revenue
The City’s General Fund revenue for FY 2025-26 is projected to decrease by approximately $1.5 million, or 4.1%, compared to projected revenues for FY 2024-25. This decline reflects a 9 Public Hearing 4.1
mix of economic challenges, policy changes, and evolving market conditions affecting key revenue sources, summarized below:
 Property Tax: Revenue is projected to increase by $388,000 (2.2%). However, the growth in assessed property values has slowed significantly—estimated at 2.4% compared to the 10-year average of 7.9%. This estimate also includes a $2.5 million projected shortfall in Property Tax In-Lieu of Vehicle License Fee (VLF) revenues for FY 2025-26, following similar shortfalls of $2.4 million in FY 2023-24 and FY 2024-25. This estimate does not include potential backfill payments from the State for prior-year shortfalls.
 Sales Tax: Sales tax revenue is expected to decline by $200,000 (3.1%), largely due to reduced consumer spending influenced by persistent inflation and restrictive monetary policy.
 Business License Tax: A significant drop of $1.5 million (65.5%) is projected. This reduction stems from Measure JJ, approved by voters in November 2024, which restricts the landlord business license tax previously authorized under Measure L. The General Fund will lose approximately $1.6 million revenue, though it can retain up to 20% of the tax revenue—approximately $300,000—for administrative purposes resulting a net loss of $1.3 million in the General Fund.
 Interest Income: Projected to decline by $210,000 due to anticipated reductions in the federal policy interest rate, which would lower returns on allowable investments. This revenue is included under the “Use of money and property” category in the table below.  Transient Occupancy Tax (TOT): No growth is projected. Collections remain below 90% of pre-pandemic levels, and recent trends suggest ongoing stagnation. Staff will continue monitoring this revenue and adjust projections as new data becomes available.

The table below reflects a preliminary General Fund revenue detail:
10 Public Hearing 4.1
General Fund Expenditure
Total General Fund expenditures, including net transfers, are proposed at $39.2 million for FY 2025-26. This amount reflects departmental requests to support ongoing operational services and select strategic initiatives. The proposed budget includes all currently authorized staff positions, including limited-term positions recommended for continuation, but does not assume any new positions; despite new positions being necessary in various departments to provide the level of service the community desires. It also reflects current economic conditions, including elevated inflationary pressures and the results of prior union agreements.

Excluding net transfers, General Fund expenditures are projected to increase by $2.6 million (7.3%) compared to the FY 2024-25 adopted budget. This increase is primarily driven by rising personnel costs (wages and benefits), increased insurance premiums, and cost inflation across goods and services. Additional workload demands associated with Council’s strategic priorities also contribute to the increase.

The proposed expenditure budget reflects preliminary findings from the City’s updated Cost Allocation Plan, expected to be finalized on June 17, 2025. This updated plan, replacing the FY 2019-20 version, more accurately distributes internal service costs based on the City organization’s current structure and service levels. As a result, the General Fund is expected to benefit from approximately $1.7 million in new cost savings through increased cost recovery from other (non-General Fund) departments and programs.

A portion of this expenditure growth is offset by a $1.0 million pause in General Fund capital transfers. This budget does not transfer any projected General Fund revenue to capital expenditures. Traditionally, the City has appropriated $1 million or more annually to capital General Fund Revenue FY 2024-25
Mid-year
FY 2025-26
Projection Variance
Property taxes $ 17,384,764 $ 17,773,000 $ 388,236
Sales taxes 5,479,000 $ 5,279,000 (200,000)
Transient Occupancy Tax 2,200,000 $ 2,200,000 -
Business License Tax 2,310,000 $ 800,000 (1,510,000)
Utility Users Tax 1,788,874 $ 2,094,000 305,126
Other taxes 90,000 $ 90,000 -
Licenses, fees and permits 1,395,000 $ 1,552,000 157,000 Charges for services 2,944,170 $ 2,719,000 (225,170)
Fines and forfeitures 290,000 $ 495,000 205,000
Use of money and property 2,220,000 $ 2,010,000 (210,000) Grants and intergovernmental 495,000 $ 65,000 (430,000) Other Miscellaneous Revenues 600,000 $ 605,000 5,000
Total GF Revenues $ 37,196,808 $ 35,682,000 $ (1,514,808) 11 Public Hearing 4.1
expenditures.

A summary of General Fund expenditures by department is provided in the following table.

General Fund Expenditure by Department FY 2024-25
Adopted
FY 2025-26
Proposed Variance
City Council 190,693 272,105 81,412
City Attorney 1,344,052 1,461,060 117,008
City Clerk 592,026 581,228 (10,798)
City Manager 4,544,891 6,391,414 1,846,523
Finance 1,489,587 1,963,136 473,549
Community & Economic Development 6,094,344 4,282,954 (1,811,390) Public Works 5,036,564 6,626,667 1,590,103
Police 14,906,446 16,387,157 1,480,711
Non-Departmental -
Capital/Technology - - -
Insurance and Settlements 1,052,624 1,066,347 13,723
Other Non-Departmental 1,449,406 1,990,391 540,985
Overhead Allocation (929,182) (2,647,709) (1,718,527)
Sub-total 35,771,451 38,374,750 2,603,299
Transfers - Operational 795,412 874,812 79,400
Transfers - Capital 1,050,000 - (1,050,000)
Total General Fund Expenditures $ 37,616,864 $ 39,249,562 $ 1,632,699 12 Public Hearing 4.1
Personnel costs across all departments increased due to merit increases, the results of previous union agreements and other benefits increases. See the summary of the major variances by department below:
 City Manager’s Office: Plans to undertake various projects during FY 2025-26 including a community surveying and financing option study ($200K), citywide performance audit ($200K), economic development strategic plan ($125K), additional emergency planning and development efforts ($135K), compensation and classification studies ($200K), citywide ergonomic studies ($150K), park improvements ($350K) – totaling $1.3 million  Community and Economic Development: Projects a reduction largely due to the building inspection and staff augmentation ($1.7 million) contract in the prior fiscal year (FY 2024- 25), which is not included in the FY 2025-26 proposed budget  Public Works: Increase will result from engineering development review consulting ($200K), SB35 plan review consulting ($80K), on-call geotechnical and transportation consulting ($100K), tree inventory and assessment efforts ($100K), graffiti abatement ($75K), side-walk repairs ($75K), and a newly added project from Council Strategic Priorities, residential parking permit program ($400K) – totaling $1.0 million  Police: the variance (9.9%) is largely related to the personnel cost increase resulting from the previous union agreement and the rising health costs. In addition, Council added expansion of parking enforcement program as a new Council Strategic Priorities project ($350K)
Key Budget Highlights
The following section summarizes major components of the FY2025–26 Proposed Budget that have significant implications for the City’s fiscal outlook, operational capacity, and strategic direction. It provides an overview of the General Fund’s resource constraints and long-term structural deficit, outlines changes resulting from the new Citywide Cost Allocation Plan, and highlights updates to the capital improvement program and personnel budget. Together, these elements reflect the City’s efforts to align limited resources with community priorities and organizational needs. Key budget highlights include:
a. General Fund resources and a structural deficit
b. New Cost Allocation Plan
c. Personnel changes
d. Capital Budget Update
Each highlight is discussed in detail below to provide context for the City’s fiscal strategy. a. General Fund Resources and Structural Deficit
Since FY 2020–21, the City has faced a structural General Fund deficit, where baseline expenditures consistently exceed recurring revenue. While the City has managed to balance recent budgets or have surpluses in the actual financial results, these outcomes have relied heavily on one-time federal COVID-19 relief funding, vacancy savings, and conservative fiscal 13 Public Hearing 4.1
management. However, underlying revenue growth, particularly in tax revenues, has lagged behind inflation and rising costs—especially in wages and benefits. In other words, this is not sustainable.

Key factors contributing to the structural imbalance include:

1. Property Tax In-Lieu of VLF Shortfalls: A $2.5 million shortfall is projected for FY 2025– 26 due to State legislation affecting school funding formulas and vehicle license fee (VLF) allocations. Although the State has historically provided backfill payments within one to two years, no long-term legislative fix has been enacted.

2. Measure L/JJ Revenue Shift: Under Measure L, the landlord business license tax produced General Fund revenues. Following the November 2024 voters’ passage of Measure JJ, approximately $1.6 million in annual business license tax revenue will be reallocated from the General Fund to a Special Housing Fund. The General Fund may only retain up to 20% of this revenue (around $300,000) for administrative overhead, reducing flexible funding for general operations. Net loss to the General Fund of the revenue is estimated to $1.3 million annually.

3. Weak Transient Occupancy Tax (TOT): TOT revenues remain below pre-pandemic levels due to slow recovery in the travel and hospitality sectors.

4. Flat or Declining Sales Tax: Consumer spending has softened due to persistent inflation and shifts in consumer behavior, resulting in stagnant or declining sales tax revenues.

5. Limited Revenue Diversity: The City's revenue base is concentrated primarily in sales tax, TOT, and property tax, making it susceptible to sector-specific or cyclical downturns.

6. Delayed Taxable Development: Infrastructure constraints, sewer service disputes, commercial real estate market instability, and delays in adoption of the Ravenswood Business District Specific Plan have slowed new development, limiting opportunities for revenue growth.

The Proposed FY 2025–26 General Fund Budget reflects a projected $3.6 million deficit, balanced using one-time reserves. The largest driver is the $2.5 million property tax in-lieu of VLF shortfall. The net loss from Measure JJ is projected to be $1.3 million as 20% of Measure JJ revenues are transferred to the General Fund for administrative costs related to housing.

Additionally, newly added priority work plan projects increased the deficit by $1.3 million as noted above. The $1.7 million in new cost savings from the updated Cost Allocation Plan reduces these revenue losses; however, the underlying structural deficit remains.

If the State provides VLF backfill payments for FY2023–24 or FY2024–25 VLF revenue losses—as it has in prior years—the deficit may be significantly reduced. Nonetheless, the absence of a long-term fix highlights the need for sustainable fiscal strategies, including revenue diversification and continued cost control.
14 Public Hearing 4.1
b. New Cost Allocation Plan
As part of the FY2025–26 budget, the City completed a comprehensive update to its Cost Allocation Plan (CAP) in partnership with the Matrix Consulting Group. The updated CAP provides a structured, transparent methodology for distributing the cost of central support services—such as Finance, Human Resources, and the City Manager’s Office—across City departments and funds that benefit from them.

The CAP allocates approximately $2.3 million in overhead costs from ten central service departments to operating departments and funds, based on measurable cost drivers such as employee count, budget share, and service usage. It should be noted that insurance and information technology (IT) services are not included in the CAP but are instead allocated separately through the City’s internal service funds, which are structured as sub-funds of the General Fund. Each applicable fund pays its proportional share of these costs based on the models using the number of employees managed through those internal service mechanisms. The IT internal service fund’s and the insurance internal services fund’s charges are $184K and $156K, respectively resulting in a total overhead charge of $2.6 million from City’s General Fund to other funds.

To maintain ongoing accuracy and fairness, the plan recommends applying an annual inflationary adjustment using the regional Consumer Price Index (CPI), subject to Council approval. Full CAP updates will be performed every three to five years, or as needed to reflect major organizational changes.

A CAP summary table in Miscellaneous Section on Budget Booklet (Attachment 3) presents the FY2025–26 overhead cost allocations to each City fund, including the General Fund, Enterprise Funds, Special Revenue Funds, and EPASD.
d. Personnel Changes
Given the City’s ongoing General Fund structural deficit, the FY2025–26 Proposed Budget takes a cautious and measured approach to staffing, which has an ongoing cost. While operational demands and service backlogs clearly indicate a need for additional personnel, efforts have been made to limit new position requests and manage long-term financial obligations.

To support critical services and advance key Council priorities without incurring permanent costs, the City Manager recommends continuing three currently filled limited-term positions which are HR Technician I/II, HR Management Analyst I, and Police Management Analyst II in FY2025–26. These positions remain essential to program continuity and are funded on a temporary basis. The combined cost of these roles is approximately $478,000.

In addition, the budget includes two new positions approved by the City Council during the second budget hearing session on May 27, 2025:
 The Public Works Department has requested a new, ongoing Maintenance Worker I 15 Public Hearing 4.1
position. This marks the first staffing increase in the Maintenance Division in over a decade, despite a substantial rise in City maintenance responsibilities, particularly related to litter abatement and illegal dumping. The total estimated annual cost is $127,903, with 20% allocated to the General Fund ($25,280) and the remaining $102,622 charged to various utility funds, based on actual time tracking.
 The Housing Division has requested a limited-term Housing Specialist position to implement a rent registry program and support broader housing initiatives, including affordable housing preservation and anti-displacement strategies. The estimated annual cost is $140,000, with 20% charged to the General Fund ($28,000) and $112,000 allocated to housing-related special revenue funds.

The table below summarizes all staffing recommendations included in the FY2025–26 Proposed Budget:
e. Capital Budget Update
The Capital Improvement Plan (“CIP”) serves as the City's roadmap for maintaining, upgrading, and developing its public infrastructure and facilities. Generally, a CIP provides a five- to ten-year plan for all individual capital projects, equipment purchases, and major studies. This includes construction, scheduling, and financing for each project. A comprehensive CIP clearly delineates the objectives of capital programs and its relationships to a City’s long-range development plans.

The City’s current Ten-Year CIP was adopted on September 15, 2020. Since then, a number of new projects have been added to the CIP based on City Council priorities, grants, and staff recommendations. An updated Ten-year CIP was presented to and approved by the City Council on May 30, 2024.

The following table lists the CIP projects scheduled to commence in FY25-26, with their costs included in the proposed budget.

PROJECT
#

DESCRIPTION FUND SOURCE TOTAL
ST-04A/B Street Light Upgrade F221 Lighting fund $2,500,000 General Fund Other Funds
HR Technician I/II (Limited Term) $ 125,000 $ - $ 125,000 HR Management Analyst I (Limited Term) $ 146,000 $ - $ 146,000 Police Management Analyst II (Limited Term) $ 207,000 $ - $ 207,000 Housing Specialist (Limited Term) $ 28,000 $ 112,000 $ 140,000 Maintenance Worker I $ 25,600 $ 102,400 $ 128,000
Total $ 531,600 $ 214,400 $ 746,000
Funding Position Total
16 Public Hearing 4.1
Sub-total Lighting fund $2,500,000
N/A Corpyard Security Project (Fencing) F301 CIP Local Match Fund $100,000 SP-02B San Francisquito Creek Reach II F301 CIP Local Match Fund $1,000,000 N/A Fordham St. Improvement F301 CIP Local Match Fund $14,122 Sub-total CIP (Local match) $1,114,122
N/A Fordham St. Improvement F303 CIP Grant Fund $109,000 Sub-total CIP (Grant) $109,000
N/A Urban Water Management Plan 2025 F511 Water Capital Surcharge Fund $150,000 Sub-total Water Capital Surcharge fund $150,000
N/A Manhole Replacement F530 EPA Sanitary District $150,000 Sub-total Sewer Capital Surcharge fund $150,000
TOTAL FY 2025-26 PROPOSED CIP FUNDING $4,023,122
Staff will return to the City Council for consideration of contractual approvals for these projects.

It's worth noting that the costs associated to CIP local match fund are funded by the transfers from the General Fund previously authorized by the City Council. In addition to these projects presented on the table, ongoing and projects unfinished by the current fiscal year end will be carried forward through the mid-year budget process and added to the revised budget.

Fiscal Impact
Establish the City’s revenue budget at $77,422,889 and appropriation budget at $62,983,671 including Capital Improvement Program budget, and the permanent staffing at 125.95 full time equivalents (FTEs). The City has a total citywide budget surplus of $14,439,218. However, the City recognizes deficits in certain General Fund operation fund, CIP funds and other restricted funds (Exhibit B of Resolution), which requires the use of available reserve balances totaling $29,251,160 including $20 million commitment for the future acquisition and development of the Community Hub project.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto. In addition, a notice of public hearing was published on a local newspaper on June 10, 2025.

Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines section 15378 (b)(4) and (b)(5), in that it is a government administrative activity that will not result in direct or 17 Public Hearing 4.1
indirect changes in the environment.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not involve an entitlement.

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. Resolution

2. City Manager’s Budget Message

3. Budget Booklet

4. Detail Budget Information by Division

5. City of East Palo Alto Strategic Plan: Four-Year Strategic Priorities (FY 2025-2029) and Two-Year Work Plan FY 2025-2027)

6. City Council Strategic Priorities FY 2025-27 Work Plan 18 1 of 4
RESOLUTION NO. XX – 2025

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO ADOPTING THE FISCAL YEAR 2025-26 REVENUE AND EXPENDITURE BUDGET

FOR THE CITY OF EAST PALO ALTO
WHEREAS, the City Council desires a spending plan for the City of East Palo Alto General, Special Revenue, Capital, Fiduciary, and Enterprise Funds in order to account for Fiscal Year 2025-26 anticipated revenues and to appropriate projected expenditures; and WHEREAS, City of East Palo Alto Municipal Code section 3.08.110 requires the adoption of an annual budget no later than June 30th prior to the beginning of the fiscal year; and WHEREAS, the City Council held budget hearing sessions on May 13, 2025, and May 27, 2025, and a final Budget Hearing on this date to discuss the City’s anticipated revenues and expenditure programs and to obtain public comment regarding the Fiscal Year 2025-26 Budget; and WHEREAS, such public hearings were duly noticed not less than seven days nor more than 21 days prior to the first hearing held on May 13, 2025, in accordance with East Palo Alto Municipal Code section 3.08.070;

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY:

1. Finds the foregoing recitals are true and correct and are incorporated by reference into this action;

2. Adopts the FY 2025-26 Budget (Exhibit A);

3. Authorizes the use of available Reserve Balances totaling $29,251,160 and the Finance Director asserts such funds are available, in order to fund certain General Fund operations, capital project funds, enterprise funds and other restricted fund deficits (Exhibit B);

4. Commits $20,000,000 of unassigned General Fund reserves for the future acquisition and development of a police department, library, and city hall project. These funds shall be classified as committed fund balance in the City’s financial records, designated exclusively for use on costs associated with the acquisition, construction, and/or tenant improvements of the facility; and;

5. Finds that the proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.

PASSED AND ADOPTED this 17th day of June 2025 by the following vote:
19 2 of 4
AYES:

NOES:

ABSENT:

ABSTAIN:

Martha Barragan
Mayor
ATTEST:

James Colin
City Clerk
APPROVED AS TO FORM:

John D. Lê
City Attorney
20 3 of 4
Exhibit A
Revenues Expenditures In Out
110 General Fund $ 35,077,000 $ (34,946,346) $ - $ - $ (3,753,216) $ (3,622,562) 111 IT Replacement Fund $ - $ (1,707,214) $ - $ 1,707,214 $ - $ - 112 Equipment & Vehicles $ - $ (190,500) $ - $ 190,500 $ - $ - 113 Self Insurance $ - $ (980,690) $ - $ 980,690 $ - $ - 117 Com Dev Pass Thru $ 605,000 $ (550,000) $ - $ - $ - $ 55,000 $ - $ - $ - $ (2,878,404) $ 2,878,404 $ -
$ 35,682,000 $ (38,374,750) $ - $ - $ (874,812) $ (3,567,562) 213 Police Grants $ 249,839 $ (170,000) $ - $ - $ - $ 79,839 215 Misc Federal and State Grants $ 775,064 $ (921) $ - $ - $ - $ 774,143 230 Local Grants $ 302,314 $ (878,563) $ - $ - $ - $ (576,249) 231 CYSFF TOT $ 319,511 $ (614,011) $ - $ - $ - $ (294,500) Community Programs $ 1,646,728 $ (1,663,495) $ - $ - $ - $ (16,767) 201 State Gas Tax $ 1,850,803 $ (903,426) $ - $ 64,500 $ - $ 1,011,877 202 Measure A $ 1,016,088 $ (55,035) $ - $ - $ - $ 961,053 203 NPDES $ 150,242 $ (789,954) $ - $ 622,994 $ - $ (16,718) 206 Park In Lieu $ 13,193 $ (1,080) $ - $ - $ - $ 12,113 221 Lighting District $ 1,126,536 $ (1,992,161) $ (2,500,000) $ - $ - $ (3,365,625) 222 Drainage District $ 210,864 $ (401,616) $ - $ 187,318 $ - $ (3,434) 234 County Measure W $ 409,788 $ (20,596) $ - $ - $ - $ 389,192 Infrastructure Programs $ 4,777,513 $ (4,163,868) $ (2,500,000) $ 874,812 $ - $ (1,011,542) 204 Rent Stabilization $ 804,232 $ (815,055) $ - $ - $ - $ (10,823) 207 Housing In Lieu $ 872,733 $ (184,260) $ - $ - $ - $ 688,473 209 Housing Assistance Program $ 14,223 $ (11,236) $ - $ - $ - $ 2,987 216 Commercial IF $ - $ (37,500) $ - $ - $ - $ (37,500) 218 Affordable Housing TOT $ 355,058 $ (30,640) $ - $ - $ - $ 324,418 219 Measure HH $ 1,921,407 $ (1,105,123) $ - $ - $ - $ 816,284 220 Lo-Mod Housing Successor $ 37,774 $ (250,019) $ - $ - $ - $ (212,245) 233 Silicon Valley Community $ - $ - $ - $ - $ - $ -
235 Measure JJ $ 1,620,690 $ (805,732) $ - $ - $ - $ 814,958 Affordable Housing Programs $ 5,626,117 $ (3,239,565) $ - $ - $ - $ 2,386,552 Total Special Revenue Funds $ 12,050,358 $ (9,066,928) $ (2,500,000) $ 874,812 $ - $ 1,358,243 301 Capital Improvement Fund $ 633,115 $ (242,904) $ (1,114,122) $ - $ - $ (723,911) 303 Capital Grant $ 109,000 $ (169,267) $ (109,000) $ - $ - $ (169,267) 305 Parks & Trails $ 3,022,570 $ (2,125) $ - $ - $ - $ 3,020,445 306 Public Facilities $ 212,681 $ (2,125) $ - $ - $ - $ 210,556 307 Transportation $ 61,095 $ (2,233) $ - $ - $ - $ 58,862 308 RBD-I Storm D $ 13,060 $ (1,873) $ - $ - $ - $ 11,187 309 RBD-O Storm D $ 481,694 $ (1,621) $ - $ - $ - $ 480,073 Capital Funds $ 4,533,216 $ (422,148) $ (1,223,122) $ - $ - $ 2,887,945 510 Water Service Fund $ 506,368 $ (574,819) $ - $ - $ - $ (68,451) 511 Water Capital Fund $ 1,568,406 $ (34,022) $ (150,000) $ - $ - $ 1,384,384 512 Water Meter Fund $ 63,798 $ (7,405) $ - $ - $ - $ 56,393 513 Water Capacity Fee Fund $ 5,498,126 $ (2,665) $ - $ - $ - $ 5,495,461 Water Enterprise $ 7,636,698 $ (618,911) $ (150,000) $ - $ - $ 6,867,787 520 Garbage Service Fund $ 3,819,257 $ (4,025,132) $ - $ - $ - $ (205,875) Garbage Service Enterprise $ 3,819,257 $ (4,025,132) $ - $ - $ - $ (205,875) 530 Sewer Service Fund $ 7,791,360 $ (6,452,680) $ (150,000) $ - $ - $ 1,188,680 533 Sewer Connection Fee Fund $ 5,910,000 $ - $ - $ - $ - $ 5,910,000 Sewer Enterprise $ 13,701,360 $ (6,452,680) $ (150,000) $ - $ - $ 7,098,680 Total Enterprise $ 25,157,315 $ (11,096,723) $ (300,000) $ - $ - $ 13,760,592 City-wide Total $ 77,422,889 $ (58,960,549) $ (4,023,122) $ 874,812 $ (874,812) $ 14,439,218 FY 2025-26 Proposed Budget Summary
Fund Description
Operating Capital
Improvement
Plan
Operating Transfers
Net Change Fund
Balance

ELIMINATING ENTRY
General Fund
21 4 of 4
Exhibit B
110 General Fund Operation $ 23,567,562
230 Local Grants $ 576,249
231 CYSFF TOT 294,500
203 NPDES 16,718
221 Lighting District 3,365,625
222 Drainage District 3,434
204 Rent Stabilization 10,823
216 Commercial IF 37,500
220 Lo-Mod Housing Successor 212,245
301 Capital Local Match 723,911
303 Capital Grant 169,267
510 Water Service Fund 68,451
520 Garbage Service Fund 205,875
$ 29,252,160
FY 2024-25 Budgeted User of Reserve
Total User of Fund Reserves
22 CITY OF EAST PALO ALTO
Office of the City Manager
2415 University Avenue
East Palo Alto, CA 94303
Phone: (650) 853- 3118
Fax: (650) 853-3136
www.cityofepa.org
[email protected]
Honorable Mayor and Members of the City Council,
I am pleased to present the Proposed Fiscal Year 2025–26 Budget for your review and feedback.

This budget reflects the City’s continued commitment to transparency, fiscal responsibility, organizational efficiency, and accountability – all while staying aligned with the City Council’s Strategic Priorities. We are navigating an increasingly complex and uncertain economic environment, and this budget is designed to help us do so with care and foresight.

This budget is aligned with the Council’s emerging FY 2025–2029 Strategic Priorities, which focus on public safety, housing, infrastructure, economic development, community facilities, good governance, and civic engagement. These priorities were shaped through a collaborative, data-informed process grounded in extensive community input. While our capacity to launch new initiatives remains limited, I have prioritized the continuation of incomplete projects from the FY 2024-2025 Work Plan and the addition of impactful new projects consistent with the Council’s draft FY 2025–2027 Work Plan.

A Cautious and Disciplined Budget Strategy
Nationally, the economy grew modestly in 2024, with the U.S. Gross Domestic Product increasing by 2.8%, according to the Bureau of Economic Analysis. Interest rates remained near 5%, and the housing market showed little movement. At the federal level, a shift toward reduced spending has added to economic uncertainty.

Locally, East Palo Alto continues to face significant fiscal challenges. Rising resident demand for services strains City resources, while key revenue streams show signs of slowing. A combination of factors including modest property tax growth, uncertainty around Vehicle License Fee (VLF) backfills, the reallocation of Measure JJ revenues, and flat Transient Occupancy Tax collections, has contributed to a projected General Fund deficit.

This FY 2025–26 Budget includes $63 million in expenditures and $77.4 million in projected revenues, resulting in a net surplus of $14.4 million. However, this surplus is mostly tied to capital and enterprise funds, including the East Palo Alto Sanitary District (EPASD) budget, which is presented as a standalone enterprise fund to ensure transparency, maintain its operational identity, and align its financial practices with the City’s systems.

The General Fund, which supports the City’s core services, projects a $3.6 million deficit. While some of this deficit is due to one-time expenses, approximately $2 million is structural, meaning the City’s ongoing costs for daily operations exceed expected revenues. This persistent 23

Page 2 ends

imbalance between revenues and expenditures, exacerbated by inflation and limited revenue diversity, calls for a cautious and disciplined budget strategy. Though the City has reserves, using them for ongoing operational costs is not sustainable long term. Therefore, this budget focuses on preserving essential services and advancing high-impact projects already in progress.

Strategic Investments for the Future
Despite financial constraints, continued strategic investment is essential. East Palo Alto lacks sufficient water storage capacity, and the existing infrastructure, including the pipes that deliver drinking water to our homes and businesses, is deteriorating. We must repair and upgrade these systems to ensure that when you turn on a faucet in East Palo Alto, safe, clean, and reliable drinking water flows freely with consistent pressure. Improving the system before it fails allows the City to maintain service to residents and save money.

We also continue to invest in local street and road improvements in local neighborhoods across the City, and repaving streets before they deteriorate further and cost more to fix.

Currently, the City’s facilities are primarily leased spaces that are scattered throughout the City, undersized, and in poor condition. We continue to work toward the City’s long-term goal of developing public facilities that not only serve as welcoming resources for the community but also are environments that facilitate the delivery of efficient, high-quality services.

This budget maintains funding for vital infrastructure improvements including water, storm drains, parks, and roads; and continues work on important resident priorities like expanded park space, ensuring a safe library, an efficient city hall, and an updated public safety facility to improve police services. These efforts will help improve daily life for residents, support economic development, and enhance the City's ability to attract and retain top talent.

Balancing immediate needs with long-term investments is essential to building a more resilient, equitable, and financially sound East Palo Alto.

Thank You, Community, City Council and Staff
In closing, I want to thank City staff, especially the Finance team, for their professionalism, hard work, and dedication in preparing this budget and their dedication to providing the services our residents depend on. I also thank the community for its active engagement and the City Council for your continued leadership.

Our organization remains focused on fiscal discipline and delivering real progress on the priorities that matter most to our residents.

Respectfully submitted,
Melvin E. Gaines,
City Manager
24 BUDGET

PROPOSAL
FY 2025 - 2026
www.cityofepa.org
25 Adopted Budget Proposed Budget
FY2024-25 FY2025-26 %
Operating Revenue:

Sewer Service Charges $ 5,200,000 5,197,840 $ 2,160 $ 0.0% Total Operating Revenue 5,200,000 5,197,840 2,160 0.0%
Non-operating Revenues:

Property taxes 1,700,000 680,000 1,020,000 150.0%
Connection Fee 5,910,000 2,000,000 3,910,000 195.5%
Interest Income 805,000 345,675 459,325 132.9%
Rental Income 36,360 36,360 - 0.0%
Other fees 50,000 - 50,000 0.0%
Total Non-operating Revenues 8,501,360 3,062,035 5,439,325 177.6% Total Revenues $ 13,701,360 8,259,875 $ 5,441,485 $ 65.9% Operating Expenditures:

Salaries and Benefits $ 459,471 781,750 $ (322,279) $ -41.2% Treatment Contract 2,700,000 2,186,000 514,000 23.5%
Contractual Services for Operation 1,200,000 890,000 310,000 34.8% Engineering Services 576,520 180,000 396,520 220.3%
Legal Services 40,000 750,000 (710,000) -94.7%
Accounting and related Services 57,100 230,000 (172,900) -75.2% Insurance - 220,000 (220,000) -100.0%
Meeting, Travel, and Training 50,500 48,000 2,500 5.2%
Other Operating Expenditures 245,716 455,900 (210,184) -46.1% Overhead Charges 1,123,373 - 1,123,373 N/A
Total Operating Expenditures 6,452,680 5,741,650 711,030 12.4% Capital Expenditures 150,000 5,400,000 (5,250,000) -97.2% Total Expenditures $ 6,602,680 11,141,650 $ (4,538,970) $ -40.7% Change in Fund Balance $ 7,098,680 (2,881,775) $ 9,980,455 $ -346.3% Use of Reserve - 2,881,775 (2,881,775) -100.0%
Budget Surplus (Deficit) $ 7,098,680 - $ - 0.0%
Projected ending reserve $ 30,728,680 23,630,000 $ 7,098,680 $ 30.0% Variance
26 FY26
Expense Detail request (Excl. Payroll)
Department/Fund: East Palo Alto Sanitary District (Fund 530) Fund Division Adopted FY 25 Proposed FY 26
53101 Staff Augmentation
530 21212 Staff Augmentation - Temp Employee through AppleOne - 39,520 Subtotal - 39,520
53201 Other Professional and Technic
530 13131 Other Professional and Technic - 10,000
530 21212 Other Professional and Technic
530 21212 EPASD Data Service Tax Roll 2,300
530 21212 Office Expenses 5,000
530 21212 Palo Alto Treatment 2,700,000
530 21212 West Bay Contract 1,200,000
530 21212 Freyer & Lauretta Engineering Services- both cost recovery and staff aug 350,000 530 21212 Wildan Impact Fee Study for EPASD** 30,000
530 21212 Wildan Rate Study for EPASD** 150,000
530 21212 Wildan EDS Tax Roll 7,000
530 95952 Other Professional and Technic 20,000 -
Subtotal 3,261,000 4,454,300
53210 Legal and Accounting Services
530 12121 Legal and Accounting Services - Legal Advise-Colantuono 750,000 40,000 530 13131 Legal and Accounting Services 230,000 47,100
Subtotal 980,000 87,100
54240 Building Maintenance
530 21213 Building Maintenance 32,000 95,876
Subtotal 32,000 95,876
54280 Janitorial Services
530 21213 Building Maintenance 20,000 25,000
Subtotal 20,000 25,000
54290 Other Repair and Maintenance
530 21212 Other Repair and Maintenance 68,000 -
Subtotal 68,000 -
54410 Land and Building Lease and Rental
530 21212 Land and Building Lease and Rental 8,000 -
Subtotal 8,000 -
55210 Premiums
530 21212 Premium 220,000 -
Subtotal 220,000 -
55300 Communications
530 95952 Communications 15,000 15,040
Subtotal 15,000 15,040
55400 Advertising
530 21212 Advertising - Publication & Legal Notice 28,000 25,000 Subtotal 28,000 25,000
Detail
3,241,000
27 FY26
Expense Detail request (Excl. Payroll)
Department/Fund: East Palo Alto Sanitary District (Fund 530) Fund Division Detail Adopted FY 25 Proposed FY 26
55800 Transportation and Training
530 10101 Training for Board Members - 7,500
530 12121 Transportation and Training - Special District Conference - 2,000 530 21212 Transportation and Training 48,000 11,000
Subtotal 48,000 20,500
55910 Membership and Dues
530 21212 Membership and Dues 30,000 30,000
Subtotal 30,000 30,000
55920 Special Events
530 21212 Special Events 70,000
Subtotal 70,000 -
55990 Other Services
530 21212 Research and Monitoring 50,400
Subtotal 50,400 -
60202 Uniform & Safety Apparel
530 21213 Uniform & Safety Apparel 10,000
Subtotal 10,000 -
60207 Utilities
530 21212 Utilities - PG&E, Water, Recology 54,000 54,000 Subtotal 54,000 54,000
60208 Fuel
530 21212 Fuel 15,000
Subtotal 15,000 -
60209 Other Operating Supplies
530 21212 Other Operating Supplies 10,500 8,500
Subtotal 10,500 8,500
60301 General Office Supplies
530 21212 General Office Supplies 10,000 10,000
Subtotal 10,000 10,000
60302 Postage and Delivery
530 21212 Postage and Delivery 5,000 5,000
Subtotal 5,000 5,000
70410 Furniture & Equipment Under $5K
530 21212 Furniture & Equip Under$5k 25,000
Subtotal 25,000 -
90310 Overhead Allocation
530 95951 Cost allocation 939,297
530 95951 Insurance Internal Service allocation 84,318
530 95952 IT Internal Service allocation 99,758
Subtotal - 1,123,373
* One-time expense
** Periodic expense (ex: every 5 years) Division Total 4,959,900 5,993,209 28 PROPOSED
BUDGET
Fiscal Year
2025 - 2026
www.cityofepa.org

CITY OF EAST PALO ALTO
29 i
FY 2025-2026 Budget Mayor
Martha Barragan
Vice Mayor
Mark Dinan
Council Members
Carlos Romero Ruben Abrica Webster Lincoln

MISSION STATEMENT
The City of East Palo Alto provides responsive,
respectful, and efficient public services to enhance
the quality of life and safety for its multi-cultural
community.
30 ii
Executive Staff
Executive Staff
Melvin Gaines, City Manager
City Manager’s Office
John Le, City Attorney
City Attorney’s Office
James Colin, City Clerk/ Public Information Officer (PIO) City Clerk’s Office
Tomohito Oku, Finance Director
Finance Department
Amy Chen, Community Development Director
Community and Economic Development
Humza Javed, Public Works Director
Public Works
Jeff Liu, Police Chief
Police Department
31 Elected Officials…………………………………………………………i
Executive Staff………………………………..…………………………ii
Table of Contents………………………………….……………………iii
Introduction
City Manager’s Message………………………………..……………CM- 1
How to Use the Budget Document………………………………..…BD- 1
City Council Strategic Priorities and Goals
Strategic Goals and Priorities…………………………………………SP- 1
Organizational Summary
Master Organization Chart…………………………………..………OS- 1
Nine-Year Position Summary…….....................................................OS- 2 Detail Position Listing…………………………………...………….. OS- 3
East Palo Alto at a Glance…………………………………...……… OS- 4
Financial Summary
FY 2025-2026 Budget……………………………..……………….. FS- 1
General Fund Revenues by Major Category……………...…………FS- 18 General Fund Expenditures by Major Category……………...………FS- 19 Departmental Budgets
City Council…………………..…….….……………………..……… DB- 1
City Attorney's Office……….…….….......…...……………….………DB- 5 City Clerk's Office……..........…....…................................................. DB- 15 City Manager's Office……..........…....…........................................... DB- 21 City Manager's Office………………………..…………………… DB- 25
Human Resources…………….…………………………….………DB- 30
Community Services and Recreation…………….…………………DB- 36
Finance Department……………………..………..…………..………DB- 53
Community and Economic Development …………………..………DB- 59
Administration………...……………………………………………DB- 63
Building Services……...………………….…………………………DB- 65
Housing and Economic Development……………..…...……..……DB- 70 Planning…….…………………..……………………..………..… DB- 80
Public Works…………………………..…………………………....…DB- 89
Administration….……………………………....………………… DB- 93
Engineering……………………………….....…………………...…DB- 105
Maintenance……………………………….....……………………DB- 110
Police Department …………………………..……………………… DB- 115
Administration………………………………………………………DB- 119
Investigations………………………………………………………DB- 123
Operations………………………………………………………… DB- 127
Non Departmental…………………………………………………… DB- 131
Miscellaneous……………………………………………………...…… MISC- 1
Glossary………………...………...………………….…………………GLOS- 1
Table of Contents
iii
32 This Page Intentionally Left Blank
33 CITY OF EAST PALO ALTO
Office of the City Manager
2415 University Avenue
East Palo Alto, CA 94303
Phone: (650) 853- 3118
Fax: (650) 853-3136
www.cityofepa.org
[email protected]
Honorable Mayor and Members of the City Council,
I am pleased to present the Proposed Fiscal Year 2025–26 Budget for your review and feedback.

Page 2 ends

We also continue to invest in local street and road improvements in local neighborhoods across the City, and repaving streets before they deteriorate further and cost more to fix.

Balancing immediate needs with long-term investments is essential to building a more resilient, equitable, and financially sound East Palo Alto.

Our organization remains focused on fiscal discipline and delivering real progress on the priorities that matter most to our residents.

Respectfully submitted,
Melvin E. Gaines,
City Manager
CM-2
35 How to Use the
Budget Document
The East Palo Alto Budget Document is a spending plan for the financial, human, and capital resources available to the City. Through these resources, services are provided to meet the needs of the East Palo Alto residents. The City Council and City staff address the community’s needs and priorities through the planning process which, in turn, culminates in the budget document as a fiscal spending plan. The budget document balances not only revenues and expenditures, but also community priorities and interests. The Budget Document is divided into eight major sections:
• City Manager’s Message
• How to Use the Budget Document
• City Council Strategic Plan
• Organizational Summary Information
• Financial Summary Information
• Departmental Budgets
• Miscellaneous
• Glossary
The City Manager’s Message
The City Manager’s Message provides a “big picture” summary for the fiscal budget period. It sets the context for budget decisions by describing community and economic conditions affecting the budget. It addresses major initiatives underway and challenges facing the City.

How to Use the Budget Document
Below is a summary of the sections within the document, describing how each section may be used effectively to understand the make-up of the document.

The City Council’s Strategic Plan
The City Council’s Strategic Plan sets the goals and objectives for the organization. It provides Council direction on a variety of initiatives to be accomplished over a two-year period and informs the work plan and budget of the Departments tasked with achieving the initiatives pending resource availability.

Organizational Summary Information
This section of the document contains useful reference information about the City and the organization, including an organizational chart, nineyear summary of the City’s employee authorized strength, “East Palo Alto at a Glance”, and East Palo Alto demographic statistics.

BD-1
36 Financial Summary Information
This section contains the FY 2025-26 Budget, by fund
and fund group-type, including narrative on the purpose of each budgeted fund and projection of fund balance: • Summary of Citywide Budget by Fund and Fund Group
• Historical Chart General Fund: o Revenues by Major Category o Expenditures by Major Category Departmental Budgets
This section contains the operating budget for all
departments and divisions. The following Departments
are presented: City Council, City Attorney, City Clerk, City Manager, Finance, Community and Economic
Development, Public Works, Police, Non-Departmental
and Capital Improvement Funding. The Departmental
Budget section presents financial figures by major
revenue and expenditures categories. Definitions of the four major expenditure categories can be found in the
Glossary. Local government budgets are organized by
fund to segregate and account for restricted resources.

Each fund is a separate accounting entity. The General
Fund provides the majority of resources for the services that the City provides, including public safety,
maintenance, and general government functions needed
to support direct services to the community. This
section also provides a historical view of revenue and
expenditures, General Fund sources and uses. Finally,
this section includes the historical and current staffing for each department/ division along with a department
organizational chart.

Miscellaneous
This section contains the major capital project funding, detail Measure P funding, the Appropriation Limit
calculated for FY2025-26 and the budget adoption
resolutions.

Glossary
This section provides definitions generally used in local, county, and state governments.

BD-2
37 FY 2025-2029 Strategic
Priorities and
FY 2025-2027 Work Plan
City of East
Palo Alto
Strategic Plan
SP-1
38 2 City of East Palo Alto Strategic Plan
Contents
Introduction --------------------------------------------- 3 Background to Strategic Planning --------------------- 4 Summary of Strengths, Issues, and Needs ------------- 6 Previous City Priorities: Continuing Projects and
Accomplishments --------------------------------------- 7 Overview of FY2025-2029 Strategic Priorities --------- 8 Civic Engagement -------------------------------------- 9 Comprehensive Housing ------------------------------10
Governance, Organizational Strength,
and Fiscal Sustainability ------------------------------11 Land Use, Economic, and Workforce Development ---12
Parks, Recreation, and Community Facilities ---------13 Public Health, Safety, and Quality of Life -------------14 Public Infrastructure and Utilities ---------------------15 Appendix—Project Work Plan------------------------ A.1
SP-2
39 Four-Year Strategic Priorities (FY 2025-2029) and Two-Year Work Plan (FY 2025-2027) 3 Introduction
The City of East Palo Alto is a
vibrant and diverse
community in the heart of
Silicon Valley.

Since incorporating as a city in
1983, East Palo Alto has grown
into a proud and active
community of about 31,500
people. Our strong tradition of
civic involvement and
community leadership continues
to shape our vision for an
inclusive and just future.

East Palo Alto celebrates its cultural diversity and is committed to being a welcoming place for all. This
Strategic Plan reflects those values, offering a clear path forward based on community input and careful planning.

The Plan focuses on seven main goals—called
“Strategic Priorities”—that will guide the City’s
decisions over the next four years. These priorities help make sure the City’s policies, programs, and services
meet community needs and that both funding and staff
time are focused on the most urgent challenges.

SP-3
40 4 City of East Palo Alto Strategic Plan
Background to Strategic Planning
Strategic planning is a critical tool for shaping the City’s future. It helps identify shared goals, outlines strategies to achieve them, and provides a clear roadmap for
implementation. A strong Strategic Plan aligns City
departments, clarifies priorities, and creates a shared sense of purpose. It also allows the City to monitor
progress over time, make informed adjustments as
needed, and maintain transparency with the public.

To ensure that City resources and efforts are focused on the highest community needs, the East Palo Alto City
Council engages in a two-part priority-setting process:

1. Establishing four-year Strategic Priorities that
reflect the long-term goals of the City, and

2. Developing a two-year Work Plan that includes
specific projects designed to advance those priorities.

Together, these elements make up the City’s Strategic
Plan. Each project in the Work Plan is tracked over time to measure progress and ensure alignment with the
Strategic Priorities.

The Strategic Plan is designed to address the City’s
most urgent and meaningful community needs while
accounting for staffing capacity and budget
constraints. The City has local authority over areas
such as land use and zoning, public utilities,
beautification and greening efforts, code enforcement,
and City-maintained roads. However, many other
issues fall outside the City’s jurisdiction. As a result, the Work Plan focuses limited City resources on a defined
set of high-impact priorities that reflect the
community’s input and values.

SP-4
41 Four-Year Strategic Priorities (FY 2025-2029) and Two-Year Work Plan (FY 2025-2027) 5 The Strategic Plan Development Process
This Strategic Plan was developed through a collaborative, multi-step process that centered around community input and used data to guide decisions. The City conducted research, worked closely with project managers, and engaged residents and stakeholders to make sure the final priorities and projects reflect what the community said matters most.

Process Highlights
• Environmental Scan: Reviewed key City plans and
documents, especially those shaped by strong
public input.
• Staff Input: Gathered ideas and insights from City
staff to help assess what’s possible based on
staffing capacity.
• Initial Round of Community Engagement: Collected
feedback to shape the first draft of the Strategic
Priorities and project ideas:
• Twelve focus group meetings with community
groups and key stakeholders
• Two pop-up workshops at the EPA Senior Center
and Cardenas Supermarket
• Strategic Planning Workshop/Retreat: A joint
community workshop and City Council retreat held
on March 8, 2025 (10am-4pm), to discuss and
refine priorities.
• Draft Development: Staff analyzed the draft priorities and projects, taking into account staffing, funding,
and what’s realistically doable.
• Second Council Study Session: On April 22, 2025,
the City Council reviewed the updated draft with
public input and gave further direction.
• Revisions: Staff made updates based on feedback
from the Council and community.
• Second Round of Community Engagement: Shared
the draft priorities and Work Plan projects with the
public and gathered more input:
• Pop-up events at the Farmers Market and Cinco de
Mayo Festival
• Online survey with 183 responses in both English
and Spanish
• One in-person and one virtual workshop
• Additional outreach across the East Palo Alto
community for further input and recommendations
• Third City Council Meeting on June 3, 2025:

City Council reviewed public input and made final
refinements.
• Fourth City Council Meeting on June 17, 2025:

The Council adopted the final Strategic Plan and
approved the City budget.

Figure 1—Process Timeline
Data Review
and Community
Engagement
FEBRUARY–MARCH 2025 MARCH–APRIL 2025 MAY–JUNE 2025
City Council
Retreat and
Goal Setting
Session
Draft Strategic
Priorities and
Projects
Community
Engagement on
Draft Priorities
and Projects
Finalize and
Adopt Strategic
Priorities and
Projects
SP-5
42 6 City of East Palo Alto Strategic Plan
Summary of Strengths, Issues,
and Needs
The City’s Strategic Priorities and Work Plan are shaped by an understanding of East Palo Alto’s strengths, issues, and needs. Key themes from community members, City Council, and City staff include:

Strengths
• Active and diverse community with a proud history
• Central location on the edge of the Bay
• Abundant natural resources and open space
• Improvements in public safety
• Progressive housing and social policies
• Support for small businesses, entrepreneurs, and
economic development
• Strong City partnerships with community nonprofit
organizations
• Enhanced transparency and performance in City
government
• High levels of civic engagement and community input
• Dedicated and collaborative City staff
• Responsible financial management and strong
budget reserves
• Great weather
• Surrounded by communities of wealth with abundant
philanthropy
• A community that values self-determination and
directs its own future
Issues and Needs
• Housing for various income levels / preventing
displacement
• Limited development and need for business growth
• Need for local job opportunities and small business
support
• Lack of retail shops, services, and community
gathering spaces
• Infrastructure improvements (water, sewer, roads,
parks, sidewalks)
• Improved code enforcement and public safety
• Traffic and pedestrian safety
• Environmental (brownfields) clean ups and
beautification
• Climate resilience and emergency preparedness
• Strained working relationships among
elected officials
• City staff retention, capacity, and workload
• Insufficient City funding and revenue sources
SP-6
43 Four-Year Strategic Priorities (FY 2025-2029) and Two-Year Work Plan (FY 2025-2027) 7 Previous City Priorities: Continuing
Projects and Accomplishments
The FY 2025–2027 Work Plan builds on progress made
through the City’s previous Strategic Priorities. Between FY 2023–2025, the City focused on seven key priorities:

1. Promote Housing, Economic, and Workforce
Development

2. Implement the Comprehensive Transportation and
Mobility Plan

3. Promote Health and Public Safety

4. Ensure Financial and Organizational Health

5. Improve the City’s Water Infrastructure

6. Develop and Implement a Comprehensive Facilities
Master Plan

7. Enhance Community Services and Parks for
Residents.

The new two-year Work Plan continues this
momentum. It includes both carryforward projects
and new initiatives under each of the updated
Strategic Priorities. This approach helps maintain
continuity, respond to changing community needs,
and make the most of available resources.

Priority Total Complete Operational In-Progress On-hold Priority A: Promote Housing, Economic
and Workforce Development
18 6 3 9 0
Priority B: Implement the Comprehensive
Transportation and Mobility Plan
18 6 1 11 0
Priority C: Promote Health and Public Safety 15 2 1 12 0 Priority D: Ensure Our Financial
and Organizational Health
13 7 2 3 1
Priority E: Improve the City’s Water
Infrastructure
8 2 1 4 1
Priority F: Develop and Implement a
Comprehensive Facilities Master Plan
10 1 0 5 4
Priority G: Enhance Community Services and
Parks for Residents
11 1 4 4 2
Total 93 25 12 48 8
By June 30, 2025, the City expects to complete or
operationalize 37 of the 93 projects from the FY
2023–2025 Work Plan. 37 in-progress projects will
carry forward into the FY 2025–2027 Work Plan.

Table 1—EPA Strategic Priorities (FY 2023-2025)
SP-7
44 8 City of East Palo Alto Strategic Plan
Public Health, Safety, and Quality of Life
Implement and enforce strategies to ensure public safety, improve the livability of neighborhoods, and prepare the City for disasters and emergencies.

Public Infrastructure and Utilities
Maintain, modernize, and expand the City’s physical infrastructure (streets, sidewalks, utilities) to support existing homes and businesses, and new development.

Parks, Recreation, and Community Facilities
Invest in the modernization and expansion of the City’s parks, recreation, and community facilities and services to increase residents’ access to open spaces and recreational opportunities.

Land Use, Economic and Workforce Development
Support balanced development that attracts investment, strengthens local businesses, reduces economic leakage, and expands access to quality jobs and services that meet local needs.

Comprehensive Housing
Increase the City’s housing stock at all income levels (from affordable to market rate), facilitate pathways to homeownership, and guard against the displacement of existing residents.

Governance, Organizational Strength,
and Fiscal Sustainability
Strengthen the City’s internal capacity, transparency, and long-term financial health by improving core operations, investing in workforce and systems, and implementing data-informed strategies to ensure effective service delivery, accountability, and fiscal resilience.

Civic Engagement
Provide diverse and inclusive opportunities for all EPA community members to participate in City meetings, have a voice in City affairs, and develop leadership skills for EPA youth.

Overview of the FY 2025-2029
Strategic Priorities
SP-8
45 Four-Year Strategic Priorities (FY 2025-2029) and Two-Year Work Plan (FY 2025-2027) 9

STRATEGIC PRIORITY
Civic Engagement
CIV-1. Develop Recommendations for Establishing a Youth Commission or Alternative Youth Civic Engagement Program
CIV-2. Implement Sister City and Cultural Exchange Initiative Carryforward projects have a “ ”. New projects have a “ ” Provide diverse and inclusive opportunities for all EPA community members to participate in City meetings, have a voice in City affairs, and develop leadership skills for EPA youth.

NEW PROJECTS 1 | CARRYFORWARD PROJECTS 1
Photo Credit: Treasured Visions.

SP-9
46 10 City of East Palo Alto Strategic Plan

STRATEGIC PRIORITY
Comprehensive Housing
NEW PROJECTS 5 | CARRYFORWARD PROJECTS 3
CH-1. Complete Construction of 965
Weeks/Colibri Commons
CH-2. Develop and Launch Home Repair
Program
CH-3. Establish Rent Registry for Both
Rent-Stabilized and Market-Rate
Rental Units
CH-4. Research Feasibility of a Financial
Empowerment and Foreclosure
Prevention Program
CH-5. Research Feasibility of a First-Time
Homebuyer Assistance Program
CH-6. Research Feasibility of a Residential
Rental Inspection Program
CH-7. Update the Inclusionary Housing
Ordinance
CH-8. Update the Zoning Code
Increase the City’s housing stock at all income levels (from affordable to market rate), facilitate pathways to homeownership, and guard against the displacement of existing residents.

Carryforward projects have a “ ”. New projects have a “ ” SP-10
47 Four-Year Strategic Priorities (FY 2025-2029) and Two-Year Work Plan (FY 2025-2027) 11

STRATEGIC PRIORITY
Governance, Organizational Strength,
and Fiscal Sustainability
NEW PROJECTS 5 | CARRYFORWARD PROJECTS 3
GOV-1. Collaborate with the SMC Libraries
to Identify and Implement a
Comprehensive Funding Strategy for
Library Construction
GOV-2. Conduct Council Term Limit Policy
Research
GOV-3. Develop a 10-Year Fiscal Strategy
and Address the Structural Deficit
GOV-4. Develop a Citywide Information
Systems Master Plan
GOV-5. Implement a Centralized Grants
Management System
GOV-6. Prepare 2026 Ballot Measure to
Raise Revenue for Infrastructure
Improvements and Public Facilities
GOV-7. Update the City’s Personnel Policies
and Procedures
GOV-8. Upgrade and Launch New City
Website
Strengthen the City’s internal capacity, transparency, and long-term financial health by improving core operations, investing in workforce and systems, and implementing data-informed strategies to ensure effective service delivery, accountability, and fiscal resilience.

Carryforward projects have a “ ”. New projects have a “ ” SP-11
48 12 City of East Palo Alto Strategic Plan

STRATEGIC PRIORITY
Land Use, Economic and Workforce Development
CARRYFORWARD PROJECTS 5
LU-1. Conclude Measure HH Pilot
Evaluation and Initiate Ongoing
Workforce Development Program
LU-2. Create an Economic Development
Strategic Plan Focusing on Small and
Micro Businesses
LU-3. Design and Implement a “Pop-Up”/
Sidewalk Vending Policy and Program
LU-4. Implement Program to Distribute
Community Resource Funds Grants for
Small Business Assistance
LU-5. Renovate the Cummings Loft Property
into a Small Business Incubator
Support balanced development that attracts investment, strengthens local businesses, and expands access to quality jobs and services that meet local needs.

Carryforward projects have a “ ”. New projects have a “ ” SP-12
49 Four-Year Strategic Priorities (FY 2025-2029) and Two-Year Work Plan (FY 2025-2027) 13

STRATEGIC PRIORITY
Parks, Recreation, and Community Facilities
NEW PROJECTS 5 | CARRYFORWARD PROJECTS 6
PR-1. Complete Construction of Tenant
Improvements at City Facilities
PR-2. Conduct a Comprehensive Evaluation
of Senior Service Agreements in East
Palo Alto
PR-3. Construct Access Improvements at
Rutgers Street Entrance to the Bay Trail
PR-4. Create a Pilot Dog Park
PR-5. Establish a Joint Use Agreement with
RCSD for Shared Recreation Sites
PR-6. Expand EPACENTER Services and
Programs Through City Funding
PR-7. Finalize Architectural Design for the
New East Palo Alto Library
PR-8. Implement Priority Projects from the
Parks, Recreation and Open Space
Master Plan
PR-9. Negotiate with County to Finalize
Acquisition of Beech Street Property
PR-10. Plan for Development of New Civic
Center Facility
PR-11. Expand Access to YMCA
Programming and Services for the
Greater East Palo Alto Community.

Invest in the modernization and expansion of the City’s parks, recreation, and community facilities and services to increase residents’ access to open spaces and recreational opportunities.

Carryforward projects have a “ ”. New projects have a “ ” SP-13
50 14 City of East Palo Alto Strategic Plan

STRATEGIC PRIORITY
Public Health, Safety, and Quality of Life
NEW PROJECTS 4 | CARRYFORWARD PROJECTS 5
PH-1. Expand Parking Enforcement Capacity
PH-2. Implement a Crime Data Analytics
Platform for the Police Department
PH-3. Implement a Shopping Cart
Abatement Program
PH-4. Launch a Residential Parking Permit
Program
PH-5. Launch Emergency Preparedness
Program
PH-6. Maintain Senior/Disabled Individuals’
Emergency Contact Database
PH-7. Strengthen the Clean City Program
to Reduce Illegal Dumping
PH-8. Update the Environmental Justice
Element of the General Plan
PH-9. Update the Safety Element of the
General Plan
Implement and enforce strategies to ensure public safety, improve the livability of neighborhoods, and prepare the City for disasters and emergencies.

Carryforward projects have a “ ”. New projects have a “ ” SP-14
51 Four-Year Strategic Priorities (FY 2025-2029) and Two-Year Work Plan (FY 2025-2027) 15

STRATEGIC PRIORITY
Public Infrastructure and Utilities
NEW PROJECTS 2 | CARRYFORWARD PROJECTS 14
PI-1. Assess Utility Operations and Prepare
Transition Plan for Post-Lease Operations
PI-2. Build Sidewalk and Pedestrian Safety
Improvements on East Bayshore Road
PI-3. Collaborate with City of Palo Alto to
Replace the Newell Street Bridge
PI-4. Collaborate with SFCJPA to Construct San
Francisquito Creek Flood Protection
Upgrades
PI-5. Collaborate with SFCJPA to Implement the
SAFER Bay Project
PI-6. Conduct a Siting Study to Identify
Locations for Additional Water
Storage Tanks
PI-7. Construct a Bicycle and Pedestrian
Overcrossing on University Avenue at US 101
PI-8. Construct Full Trash Capture Devices to
Meet Stormwater Compliance Requirements
PI-9. Construct Mini Roundabouts to Replace
Temporary Traffic Circles on Pulgas Avenue
PI-10. Create a Financing Strategy for Water
Infrastructure Upgrades
PI-11. Design Roadway Improvements on
Woodland Avenue
PI-12. Develop an Asset Management
Database
PI-13. Develop Citywide Sewer Infrastructure
Master Plan
PI-14. Install Citywide Lighting Improvements
- Phase II
PI-15. Install New Traffic Signal and Complete
Safety Upgrades on University Avenue at
Runnymede
PI-16. Modernize Equipment and Complete
Rehabilitation of the O’Connor Pump Station
Maintain, modernize, and expand the City’s physical infrastructure (streets, sidewalks, utilities) to support existing homes and businesses, and new development.

Photo Credit: Climate Resilient Communities.

Carryforward projects have a “ ”. New projects have a “ ” SP-15
52 PREPARED BY
SP-16
53 Civic Engagement
Provide diverse and inclusive opportunities for all EPA community members to participate in City meetings,
have a voice in City affairs, and develop leadership skills for EPA youth.

Comprehensive Housing
Increase the City’s housing stock at all income levels
(from affordable to market rate), facilitate pathways to homeownership, and guard against the displacement
of existing residents.

Governance, Organizational Strength,
and Fiscal Sustainability
Strengthen the City’s internal capacity, transparency, and long-term financial health by improving core operations, investing in workforce and systems, and implementing
data-informed strategies to ensure effective service
delivery, accountability, and fiscal resilience.

Land Use, Economic and Workforce Development
Support balanced development that attracts
investment, strengthens local businesses, reduces
economic leakage, and expands access to quality jobs
and services that meet local needs.

Public Health, Safety, and Quality of Life
Implement and enforce strategies to ensure public
safety, improve the livability of neighborhoods, and
prepare the City for disasters and emergencies.

Public Infrastructure and Utilities
Maintain, modernize, and expand the City’s physical
infrastructure (streets, sidewalks, utilities) to support the existing homes and businesses as well as new development.

City Council Strategic Priorities
FY 2025-27 Work Plan
This work plan details the new and ongoing City projects for fiscal years 2025-2026 and 2026- 2027 and categorizes them into different priorities detailed below. See the example project key for how to read the work plan. See the division key for division abbreviations.

Project Name. New projects have a “ ”.

Carryforward projects have a “ ”.

City Division Lead
Project Description Project Start and Duration
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 25–26 FY 26–27
24 MO
Upgrade and Launch New City Website (City Clerk)
Upgrade the City’s website to be more user-friendly, mobile-accessible, and easier to navigate.

EXAMPLE PROJECT KEY—Fiscal years (FY) are July 1–June 30

CITY DEPARTMENT/ DIVISION KEY
CEDD-Building: Community and Economic Development
Department-Building Division
CEDD-Housing: Community and Economic Development
Department-Housing Division
CEDD-Planning: Community and Economic Development
Department-Planning Division
CEDD-RSP: Community and Economic Development
Department-Rent Stabilization Program
City Clerk
CMO-Admin: City Manager’s Office-Administration
CMO-CS: City Manager’s Office-Community Services
and Recreation
CMO-HR: City Manager’s Office-Human Resources
CMO-IT: City Manager’s Office-Information Technology
Finance
Police
PW-Eng: Public Works-Engineering
PW-Env: Public Works-Environment and Sustainability
PW-Main: Operations and Maintenance
FY 2025-29 STRATEGIC PRIORITIES
SP-17
54 Q1 Q2 Q3
FY 25–26 FY 26–27
Q4 Q1 Q2 Q3 Q4
CIV-1. Develop Recommendations for Establishing a Youth Commission or Alternative Youth Civic Engagement Program (CMO-CS)
Enhance the existing process to establish a Youth Commission, expanding it to include diverse youth civic engagement opportunities and pathways for youth from all backgrounds to participate in City government via internships, civic leadership training, and mentorship.

CIV-2. Implement Sister City and Cultural Exchange Initiative (City Clerk) Formalize a sister city relationship with a city in the Kingdom of Tonga, including cultural exchanges and shared events, to foster long-term relationships and cultural, educational, and civic exchanges. 9 MO
12 MO

CIVIC ENGAGEMENT
Q1 Q2 Q3
FY 25–26 FY 26–27
Q4 Q1 Q2 Q3 Q4
CH-1. Complete Construction of 965 Weeks/Colibri Commons (CEDDBuilding) Support the final construction activities and project closeout for Colibri Commons, creating 136 affordable housing units.

CH-2. Develop and Launch Home Repair Program (CEDD-Housing) Offer grants or loans for home repairs to qualifying low-income residents.

CH-3. Establish Rent Registry for Both Rent-Stabilized and Market-Rate Rental Units (CEDD-RSP)
Launch a new Rent Registry system to register and track all rental units in East Palo Alto, promoting transparency and rental stability.

CH-4. Research Feasibility of a Financial Empowerment and Foreclosure Prevention Program (CEDD-Housing)
Conduct research and internal analysis to assess the feasibility of creating a foreclosure prevention fund to support homeowners at risk of losing their homes.

CH-5. Research Feasibility of a First-Time Homebuyer Assistance Program (CEDD-Housing)
Research and assess down payment assistance models for eligible first-time homebuyers.

CH-6. Research Feasibility of a Residential Rental Inspection Program (CEDD-Building)
Assess the feasibility of establishing a systematic rental inspection program to ensure safety, habitability, and compliance with health and building codes across residential rental properties.

CH-7. Update the Inclusionary Housing Ordinance (CEDD-Housing) Amend the Inclusionary Housing Ordinance to reduce constraints.

CH-8. Update the Zoning Code (CEDD-Planning)
Complete updates to the City’s zoning code to comply with State housing requirements and streamline development review processes. 21 MO
12 MO
24 MO
12 MO
15 MO
9 MO
12 MO
3 MO

COMPREHENSIVE HOUSING
SP-18
55 Q1 Q2 Q3
FY 25–26 FY 26–27
Q4 Q1 Q2 Q3 Q4
GOV-1. Collaborate with the SMC Libraries to Identify and Implement a Comprehensive Funding Strategy for Library Construction (CMO-Admin) Pursue partnerships and fundraising strategies with San Mateo County Libraries, securing full funding for library construction.

GOV-2. Conduct Council Term Limit Policy Research (City Clerk) Analyze how other cities use term limits for elected officials and present options to City Council.

GOV-3. Develop a 10-Year Fiscal Strategy and Address the Structural Deficit (Finance)
Develop a strategy to reduce the City’s budget deficit and keep services funded long term.

GOV-4. Develop a Citywide Information Systems Master Plan (CMO-IT) Create a long-term strategic plan for City technology investments, heightened cybersecurity, and infrastructure upgrades.

GOV-5. Implement a Centralized Grants Management System (Finance) Bring in a new system to manage the grants the City applies for and awards to community partners.

GOV-6. Prepare 2026 Ballot Measure to Raise Revenue for Infrastructure Improvements and Public Facilities (CMO-Admin)
Begin the public process of exploring a future bond measure to fund unfunded infrastructure and buildings.

GOV-7. Update the City’s Personnel Policies and Procedures (CMO-HR) Update the City’s Personnel Policies to align with best practices, support labor relations, and improve Human Resources management.

GOV-8. Upgrade and Launch New City Website (City Clerk) Upgrade the City’s website to be more user-friendly, mobile-accessible, and easier to navigate.
12 MO
12 MO
9 MO
6 MO
18 MO
18 MO
24 MO
24 MO

GOVERNANCE, ORGANIZATIONAL STRENGTH,

AND FISCAL SUSTAINABILITY
Q1 Q2 Q3
FY 25–26 FY 26–27
Q4 Q1 Q2 Q3 Q4
LU-1. Conclude Measure HH Pilot Evaluation and Initiate Ongoing Workforce Development Program (CEDD-Housing)
Complete an evaluation of the Measure HH Pilot Workforce Development Program to assess impact and guide future workforce investments.

LU-2. Create an Economic Development Strategic Plan Focusing on Small and Micro Businesses (CMO-Admin)
Develop an Economic Development Strategy aimed at supporting small and micro businesses to grow local jobs and services.

LU-3. Design and Implement a “Pop-Up”/Sidewalk Vending Policy and Program (CMO-Admin)
Develop regulations and a program for immobile sidewalk vendors, supporting equitable entrepreneurship while protecting health and safety. 24 MO
6 MO
6 MO

LAND USE, ECONOMIC AND WORKFORCE DEVELOPMENT
Continues on following page;
SP-19
56 Continued from previous page. Q1 Q2 Q3
FY 25–26 FY 26–27
Q4 Q1 Q2 Q3 Q4
LU-4. Implement Program to Distribute Community Resource Funds Grants for Small Business Assistance (CMO-Admin)
Distribute grant funding to support assistance to small businesses.

LU-5. Renovate the Cummings Loft Property into a Small Business Incubator (PW-Eng)
Renovate the City-owned Cummings Loft property, creating an incubator space for local entrepreneurs and startups.
15 MO
18 MO

PARKS, RECREATION, AND COMMUNITY FACILITIES
Q1 Q2 Q3
FY 25–26 FY 26–27
Q4 Q1 Q2 Q3 Q4
12 MO
15 MO
12 MO
24 MO
18 MO
15 MO
6 MO
PR-1. Complete Construction of Tenant Improvements at City Facilities (PW-Eng) Perform facility improvements at the police station as well as the Tate Street office building.

PR-2. Conduct a Comprehensive Evaluation of Senior Service Agreements in East Palo Alto (CMO-CS)
Review the current service levels of operations for the older adult community and use the Age Friendly Action Plan to develop a roadmap for improvements.

PR-3. Construct Access Improvements at Rutgers Street Entrance to the Bay Trail (PW-Eng)
Complete improvements to open a pedestrian access point to the Bay Trail at Rutgers Street, expanding recreational access for residents.

PR-4. Create a Pilot Dog Park (CMO-CS)
Establish a pilot dog park at an existing park site.

PR-5. Establish a Joint Use Agreement with RCSD for Shared Recreation Sites (CMO-CS)
Pursue shared use agreements with local schools, increasing community access to recreational facilities.

PR-6. Expand EPACENTER Services and Programs Through City Funding (CMO-CS) Fund new or expanded programs at EPACENTER, increasing access to the arts for the East Palo Alto community.

PR-7. Finalize Architectural Design for the New East Palo Alto Library (PW-Eng) Finalize the design plans for the new East Palo Alto library, providing modern spaces for learning, technology access, and community programming.

PR-8. Implement Priority Projects from the Parks, Recreation and Open Space Master Plan (CMO-CS)
Construct small-scale, visible park improvements such as benches, landscaping, and signage.

PR-9. Negotiate with County to Finalize Acquisition of Beech Street Property (CMO-Admin)
Continue negotiations to acquire County-owned property on Beech Street for future park expansion or community use.

PR-10. Plan for Development of New Civic Center Facility (CMO-Admin) Determine funding and begin planning for a new civic center that brings together a new larger library, city hall, police department offices, and park including track and field.

PR-11. Expand Access to YMCA Programming and Services for the Greater East Palo Alto Community (CMO-CS)
Collaborate with the YMCA to increase accessibility to recreation services for East Palo Alto residents who may otherwise be unable to participate. 24 MO
24 MO
6 MO
18 MO
SP-20
57 Q1 Q2 Q3
FY 25–26 FY 26–27
Q4 Q1 Q2 Q3 Q4
PH-1. Expand Parking Enforcement Capacity (Police)
Increase resources to enforce parking rules across the City, addressing blocked driveways and long-term vehicle storage on public streets.

PH-2. Implement a Crime Data Analytics Platform for the Police Department (Police)
Expand the Police Department’s ability to analyze crime, traffic, and community safety trends to inform public safety initiatives.

PH-3. Implement a Shopping Cart Abatement Program (CMO-Admin) Create a program to remove and prevent abandoned shopping carts across town.

PH-4. Launch a Residential Parking Permit Program (PW-Eng) Implement a pilot parking permit program to manage parking availability and reduce congestion.

PH-5. Launch Emergency Preparedness Program (CMO-Admin) Update the City’s emergency operations plan, enhance communication systems, and provide training to staff and residents.

PH-6. Maintain Senior/Disabled Individuals’ Emergency Contact Database (CMO-CS)
Improve and expand the City’s emergency contact list for seniors and people with disabilities.

PH-7. Strengthen the Clean City Program to Reduce Illegal Dumping (PW-Env)
Expand the City’s Clean City Program with new enforcement and education strategies to reduce illegal dumping and improve community cleanliness.

PH-8. Update the Environmental Justice Element of the General Plan (CEDDPlanning) Complete the Environmental Justice Element update to strengthen policies addressing health disparities and environmental burdens.

PH-9. Update the Safety Element of the General Plan (CEDD-Planning) Complete the Safety Element update to align with modern risks and community priorities, enhancing the City’s resilience to natural hazards. 18 MO
15 MO
12 MO
12 MO
24 MO
12 MO
24 MO
18 MO
18 MO

PUBLIC HEALTH, SAFETY, AND QUALITY OF LIFE
SP-21
58 PUBLIC INFRASTRUCTURE AND UTILITIES
Q1 Q2 Q3
FY 25–26 FY 26–27
Q4 Q1 Q2 Q3 Q4
24 MO
24 MO
24 MO
24 MO
9 MO
9 MO
9 MO

ON HOLD
15 MO
12 MO
6 MO
15 MO
PI-1. Assess Utility Operations and Prepare Transition Plan for Post-Lease Operations (CMO-Admin)
Evaluate options for managing water, sewer, and solid waste utilities to ensure their long-term sustainability after their contracts expire.

PI-2. Build Sidewalk and Pedestrian Safety Improvements on East Bayshore Road (PW-Eng)
Build new sidewalks along East Bayshore Road, enhancing pedestrian safety, ADA accessibility, and multimodal connectivity.

PI-3. Collaborate with City of Palo Alto to Replace the Newell Street Bridge (PW-Eng)
Coordinate with Palo Alto to replace the Newell Street Bridge, improving flood protection and traffic safety between the cities.

PI-4. Collaborate with SFCJPA to Construct San Francisquito Creek Flood Protection Upgrades (PW-Eng)
Continue collaboration with the San Francisquito Creek Joint Powers Authority to enhance flood protection for residents and businesses.

PI-5. Collaborate with SFCJPA to Implement the SAFER Bay Project (PW-Eng)
Advance the SAFER Bay Project design to protect the community from tidal flooding and sea level rise impacts.

PI-6. Conduct a Siting Study to Identify Locations for Additional Water Storage Tanks (PW-Eng)
Assess and identify suitable sites for new water storage facilities, enhancing emergency and drought resilience.

PI-7. Construct a Bicycle and Pedestrian Overcrossing on University Avenue at US 101 (PW-Eng)
Complete construction of a new overcrossing, improving safe pedestrian and bicycle access across University Avenue.

PI-8. Construct Full Trash Capture Devices to Meet Stormwater Compliance Requirements (PW-Eng)
Install trash capture devices in the stormwater system to comply with State mandates and reduce pollution in local waterways.

PI-9. Construct Mini Roundabouts to Replace Temporary Traffic Circles on Pulgas Avenue (PW-Eng)
Replace temporary traffic circles with permanent mini roundabouts, improving intersection safety and traffic management.

PI-10. Create a Financing Strategy for Water Infrastructure Upgrades (Finance)
Create a financing strategy for major water infrastructure improvements, leveraging grants and ratepayer resources.

PI-11. Design Roadway Improvements on Woodland Avenue (PW-Eng) Design comprehensive roadway improvements on Woodland Avenue from University Avenue to Newell Road.

PI-12. Develop an Asset Management Database (PW-Main)
Continue development of a database encompassing all City-owned infrastructure to improve asset tracking and long-term maintenance planning.
3 MO
Continues on following page;
SP-22
59 Continued from previous page. Q1 Q2 Q3
FY 25–26 FY 26–27
Q4 Q1 Q2 Q3 Q4
PI-13. Develop Citywide Sewer Infrastructure Master Plan (PW-Eng) Assess the current condition of the sewer system and create a long-term plan for replacements and repairs.

PI-14. Install Citywide Lighting Improvements - Phase II (PW-Eng) Finish installing new streetlights and begin the next multi-year phase.

PI-15. Install New Traffic Signal and Complete Safety Upgrades on University Avenue at Runnymede (PW-Eng)
Upgrade the University Avenue/Runnymede Street intersection with traffic signal and pedestrian enhancements.

PI-16. Modernize Equipment and Complete Rehabilitation of the O’Connor Pump Station (PW-Eng)
Upgrade the O’Connor Pump Station’s engines and electrical systems, improving stormwater management capacity.
[email protected] cityofepa.org
2415 University Avenue, East Palo Alto, CA 94303

GET IN TOUCH
Contact us through one of the methods below.
650-853-3100
12 MO
24 MO
12 MO
21 MO
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60 This Page Intentionally Left Blank
61 CITY OF EAST PALO ALTO

CITY ORGANIZATIONAL CHART
FY 2025-2026 Budget
DB-67

RESIDENTS OF EAST PALO ALTO

CITY COUNCIL

BOARDS & COMMISSIONS
• Planning
• Public Works & Transportation
• Rent Stabilization Board
• Senior Advisory Board
CITY ATTORNEY’S OFFICE
CITY MANAGER’S OFFICE
Human Resources Administration
Community Services & Recreation
Information Technology (IT)

FINANCE
POLICE
Administration
Operations
Investigations

PUBLIC WORKS
Administration
Engineering
Maintenance

COMMUNITY & ECONOMIC

DEVELOPMENT
Administration
Building/Planning
Housing/ Econ Development

CITY CLERK OFFICE
OS-1
62 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Policy & Executive
City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 City Clerk's Office 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 City Attorney's Office 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 City Manager's Office 3.00 3.00 3.00 3.00 4.00 4.00 5.00 6.00 7.00 City Manager - Human Resources - - - 2.00 2.00 2.00 2.00 2.00 2.00 City Manager - Rent Stabilization - - - - - - - - -
City Manager - Community Programs - - - - - - - 5.70 5.70 Sub-Total 12.00 12.00 12.00 14.00 15.00 15.00 17.00 23.70 24.70 Administrative Support Services
Finance Department 6.00 6.00 7.00 7.00 6.00 7.00 7.00 7.00 8.00 Administrative Services Admin 3.00 3.00 3.00 3.00 3.00 2.00 - - - Community Services Division 4.15 4.15 4.15 3.65 5.15 5.15 5.15 - - Human Resources 2.00 2.00 2.00 - - - - - -
Sub-Total 15.15 15.15 16.15 13.65 14.15 14.15 12.15 7.00 8.00 Community and Economic Development
Administration Division 5.90 6.45 6.45 3.50 4.00 4.00 4.00 4.00 4.00 Building Services Division 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Planning Division 4.00 4.00 4.00 4.00 4.00 5.00 5.00 5.00 5.00 Housing/Economic Division 3.00 3.00 3.00 3.00 4.00 4.00 4.00 4.00 4.00 Senior Services Division - - - - - - - - -
Sub-Total 19.90 20.45 20.45 17.50 19.00 20.00 20.00 20.00 20.00 Public Safety
Administration Division 9.00 9.00 9.00 9.00 9.00 9.00 8.00 8.00 8.00 Investigations Division 8.25 8.25 11.15 11.15 11.15 12.25 11.25 6.45 6.00 Operations Division 29.00 29.00 27.00 28.00 28.00 29.35 30.35 34.80 34.80 Sub-Total 46.25 46.25 47.15 48.15 48.15 50.60 49.60 49.25 48.80 Public Works
Administration Division 2.00 2.00 2.00 4.50 4.45 4.45 4.45 4.45 4.45 Engineering Division 5.00 5.00 5.00 3.75 5.00 5.00 5.00 6.00 7.00 Maintenance Division 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 13.00 Sub-Total 19.00 19.00 19.00 20.25 21.45 21.45 21.45 22.45 24.45 TOTAL POSITIONS 112.30 112.85 114.75 113.55 117.75 121.20 120.20 122.40 125.95

CITY OF EAST PALO ALTO

NINE-YEAR POSITION SUMMARY
FY 2017-18 to FY 2025-26
OS-2
63 FTE's
FY 2025-26
FTE's
FY 2025-26
City Council Community and Economic Development (Cont'd) a. Council Member 5.00 Planning Division
a. Planning Manager 1.00
City Attorney's Office b. Senior Planner 1.00
a. City Attorney/District Counsel1 1.00 c. Assistant/Associate Planner 2.00 b. Deputy City Attorney I/II 1.00 d. Planning Technician 1.00 c. Paralegal2 1.00 5.00

3.00 City Manager's Office
Admininistration Adminstration Division
a. City Manager/General Manager1 1.00 a. Public Works Director/District Engineer1 1.00 b. Assistant City Manager/Assistant General Manager1 1.00 b. Administrative Assistant 1.00 c. Assistant to the City Manager 2.00 c. Management Analyst I/II 1.00 d. Information Technology (IT) Manager 1.00 d. Environmental Service Aide 1.45 e. Information Technology (IT) Specialist I/II2 1.00 4.45 f. Executive Assist. to City Mgr 1.00 Engineering Division

7.00 a. City Engineer 1.00
Human Resources Division b. Utility Manager 1.00
a. Human Resources Manager 1.00 c. Senior Engineer 1.00 b. Human Resources Technician I/II 1.00 d. Assistant/Associate Engineer 2.00

2.00 e. Public Works Supervisor 1.00
Community Services Division f Administrative Assistant2 1.00 a. Community Services Manager 1.00 7.00
b. Recreation Coordinator 1.00 Maintenance Division
c. Recreation Leader II (1 FTE, 1 PT) 1.45 a. Maintenance Manager 1.00 d. Van Driver (2 PT) 1.00 b. Maintenance Worker I 4.00
e. Nutrition Site Supervisor (1 PT) 0.75 c. Maintenance Worker II 5.00 f. Kitchen Aide (1 PT) 0.50 d. Maintenance Worker III 2.00

5.70 e. Secretary I 1.00
City Clerk's Office 13.00
a. City Clerk - Public Information Officer (PIO) 1.00 Police b. Office Assistant 1.00 Administration Division

2.00 a. Police Chief 1.00
Finance b. Support Services Manager 1.00
a. Finance Director/District Treasurer1 1.00 c. Police Records Supervisor 1.00 b. Financial Services Manager 1.00 d. Police Record's Clerk I/II 4.00 c. Accountant Senior2 2.00 e. Property & Evidence Technician 1.00 d. Accountant I 1.00 8.00
e. Accounting Technician I/II 1.00 Investigations Division f. Grant Coordinator 1.00 a. Captain 1.00
G Senior Accounting Technician 1.00 b. Police Officer 4.00

8.00 c. Police Sergeant 1.00
Community and Economic Development 6.00
Administration Division
a. Community & Economic Dev Director 1.00 Operations Division b. Management Analyst I/II 1.00 a. Captain 1.00
c. Secretary I/II 1.00 b. Police Sergeant 4.00
d. Office Assistant 1.00 c. Police Officer 24.00

4.00 d. Community Services Officer 4.00
Building Services Division c. Community Services Officer (4 PT) 1.80 a. Chief Building Official 1.00 34.80
b. Building Inspector I/II 1.00
c. Building Permit Technician 2.00
d. Bldg Inspector/Neighborhood Preserv Officer I/II 1.00 e. Neighborhood Preservation Officer I/II 2.00

7.00 Housing/Econ Division
a. Housing & Econ Dev Manager 1.00
b. Housing Project Manager 1.00
c. RSP Administrator 1.00
d. RSP Coordinator I/II 1.00

4.00 Total Authorized FTE's 125.95

CITY OF EAST PALO ALTO
Detail Position Listing
Public Works
1 The FY25 Midyear budget session, effective March 18, 2025, approved the updated titles and job description/classification specifications for the following: City Manager to City Manager/General Manager, from City Attorney to City Attorney/District Counsel, from Assistant City Manager to Assistant City Manager/Assistant General Manager, from Finance Director to Finance Director/District Treasurer, and from Public Works Director to Public Works Director/District Engineer. 2 The FY25 Midyear budget session, effective March 18, 2025, approved an amendment to the City's Classification Plan adding 1.0 FTE Administrative Assistast, adding 1.0 FTE Information Technology Specialist I/II, adding 1.0 FTE Accountant Senior, adding 1.0 FTE Paralegal, and eliminating 1.0 FTE Legal Assistant.

OS-3
64 East Palo Alto at
a Glance

ABOUT EAST PALO ALTO
The City of East Palo Alto is in the heart of the Silicon Valley and is uniquely positioned to maximize its potential as a significant city in the region. Founded by speculators and farmers in 1849, the town was originally named Ravenswood.

For most of its history, the area regarded as East Palo Alto was 13 square miles and part of unincorporated San Mateo County. As such, it did not have an official boundary until it incorporated in 1983. However, the area was much larger than the City’s current 2.5 square miles. Large tracts of land were annexed by surrounding cities from the late 1940’s to the early 1960’s. This trend ended in 1983 when the residents incorporated to gain local control over land use and municipal services.

The original inhabitants were Ohlone/Costanoan Native Americans. Spanish ranchers took over, followed by an influx of speculators and settlers of European origin. For a time, Asian and Italian flower growers preceded the flood of middle-class migrants drawn to post-war housing developments. East Palo Alto later became the largest African American community on the Peninsula. Today, due to significant demographic changes during the last decade, the City possesses a broad multi-ethnic profile that includes a majority Latino and growing Pacific Island population.

Trade has alternately focused on ranching, transportation and shipping, brick manufacturing, farming, servicing travelers of Bayshore Highway and Dumbarton Bridge, and flower growing. At present there is a mix of industrial, agricultural, and commercial businesses.

The signs of continuing and rapid transition are evident; and none more so than the rapid changes brought about by proximity to the most successful businesses in Silicon Valley. However, some things have remained constant, namely the characteristics that have always attracted people to the area: multi-cultural acceptance; a beautiful, rural-like setting; centralized location; proximity to transportation and the San Francisco Bay; as well as some of the most enviable weather in the nation.

Today, the City of East Palo Alto is closer than ever to realizing its potential.

As the City continues to make progress and become more self-sufficient, there is evidence that East Palo Alto will be able to strike a harmonious balance between a goal of establishing a sound commercial base and the dream of an idyllic and welcoming community.

OS-4
65 CITY GEOGRAPHY
The City of East Palo Alto is located approximately 29
miles south of San Francisco and 19 miles north of San
Jose. The City occupies 2.5 square miles. The latest
estimates place the City’s population at 28,216.

CITY AUTHORITY
The City of East Palo Alto is a general law city under
California State law and its rights, powers, privileges, authority, and functions are established through the
State constitution and the State Law. The powers
granted to California cities by state statute include the power to: sue and be sued; purchase, receive by gift or bequest and hold land, make contracts and purchases
and hold personal property necessary to the exercise of its powers, manage, sell, lease, or otherwise dispose of its property as the interest of its inhabitants require; levy and collect taxes authorized by law and exercise such
other and further powers as may be especially conferred by law or as may be necessarily implied from those
expressed.

East Palo Alto is a General Law Council/ Manager City
governed by a five-member City Council with a
Council elected Mayor. The City incorporated July 1,
1983.

The City provides a range of services to its residents
including public protection through the Police
Department, the construction and maintenance of
streets and infrastructure, community and economic
development affordable housing programs, financial
management, and administrative and community
services.

THE CITY COUNCIL
The members of the City Council are elected by the
voters to serve overlapping four-year terms. The Mayor
is elected by, and from, the City Council for a one-year term. The City Council sets policy and exercises the
legislative authority of the City. By City Ordinance, the City Council holds meetings on the first and third
Tuesdays of every month and at other times as, in the
opinion of the City Council, the public interest may
require.

The current City Council members and the dates upon
which their respective terms expire are as follows:

Mayor: Martha Barragan Nov. 2026
Vice Mayor: Mark Dinan Nov. 2028
Council Member: Ruben Abrica Nov. 2026
Council Member: Carlos Romero Nov. 2028
Council Member: Webster Lincoln Nov. 2028

ADMINISTRATION AND

MANAGEMENT
East Palo Alto is a Council-Manager form of government.

The City Council appoints the City Attorney and the City Manager. The City Manager appoints all other City
employees and is charged with overseeing the City’s daily operations. Many boards, commissions, and committees
assist the City Council and Administration in carrying out various aspects and functions of city government.

OS-5
66 Demographic Information
Land Area: 2.5 square miles
Populationi
1990 23,570
2000 29,506
2005 29,431
2010 28,155
2015 29,137
2020 30,034
2025 Projected 29,133
Population by Gender i
Female 51.6%
Male 48.4%
Population by Age Group i
Under 5 years 5.7%
5 to 9 years 5.7%
10 to 14 years 5.9%
15 to 19 years 8.3%
20 to 24 years 6.8%
25 to 29 years 10.2%
30 to 34 years 7.8%
35 to 39 years 6.2%
40 to 44 years 8.3%
45 to 49 years 6.4%
50 to 54 years 5.0%
55 to 59 years 6.6%
60 to 64 years 7.4%
65 to 69 years 3.3%
70 to 74 years 2.1%
75 to 79 years 2.4%
80 to 84 years 1.2%
85 years and over 0.5%
Racial Composition i
Hispanic or Latino 61.0%
Black or African Amer 13.0%
White 11.5%
Asian 5.7%
Pacific Islander 5.3%
Two or More 11.9%
Other 3.4%
i https://www.census.gov/
Level of Educational Attainment of Persons 25 years
and older i
No High School degree 23.9%
High School degree or equivalent 23.1%
Some college, no degree 21.2%
Associate’s degree, Bachelor’s degree 20.1%
Post-grad degree 11.7%
Per Capita Personal Income i
$40,141
Median Sales Price for Single Family Residencesii
($1,050,000 in 2024)
ii San Mateo County Associations of Realtors
OS-6
67 FINANCIAL SUMMARY
FY 2025-2026 Budget
The Financial Summary section contains the following adopted budget and financial summary information:

Budget Information:
• Citywide Budget Overview
o FY 2025-26 Budget by Fund Category
• General Fund Overview
o FY 2025-26 General Fund and Internal Reserve Funds Budget • Special Revenue Funds Overview
o FY 2025-26 Special Revenue Funds Budget
 FY 2025-26 Community Programs Budget
 FY 2025-26 Housing Programs Budget
 FY 2025-26 Transportation and Infrastructure Programs Budget • Capital Funds Overview
o FY 2025-26 Capital Funds Budget
• Enterprise Funds Overview
o FY 2025-26 Enterprise Fund Budget
Other Financial Information:
• General Fund Revenues by Major Category
• General Fund Expenditures by Major Category
FS-1
68 CITYWIDE BUDGET OVERVIEW
The Citywide budget overview provides a one-page view across all the various fund-types operating within the City. This view gives a full perspective of total revenues by character and total expenditures by department across all City funds. The City operates the following fund-group types:
• General and Internal Reserve Funds
• Special Revenue Funds
• Capital Projects Funds
• Enterprise Funds
• Successor Agency Trust Fund
FS-2
69 General Fund
and Internal
Reserves
Special
Revenue
Funds
Capital
Improvement
Funds
Enterprise Funds City Total Successor
Trust Fund GRAND TOTAL
Revenues
Property Tax 17,773,000 1,059,453 - 1,700,000 20,532,453 1,562,728 22,095,181 Sales Tax 5,279,000 - - - 5,279,000 - 5,279,000
Transient Occupancy Tax 2,200,000 550,000 - - 2,750,000 - 2,750,000 Business License Tax 800,000 1,620,690 - - 2,420,690 - 2,420,690 Utility User Tax 2,094,000 - - - 2,094,000 - 2,094,000
Other Taxes 90,000 3,321,917 - - 3,411,917 - 3,411,917
Licenses, Fees, and Permits 1,552,000 1,394,416 3,691,099 5,463,578 12,101,093 - 12,101,093 Charges for Services 2,719,000 131,325 - 9,850,370 12,700,695 - 12,700,695 Fines and Forfeitures 495,000 2,500 - - 497,500 - 497,500 Use of Money and Property 2,010,000 1,700,058 733,117 1,960,034 6,403,208 81,077 6,484,285 Grants and Intergovernmental 65,000 1,370,000 109,000 - 1,544,000 - 1,544,000 Other Miscellaneous 605,000 900,000 - 6,183,333 7,688,333 - 7,688,333 Total Revenues 35,682,000 12,050,358 4,533,216 25,157,315 77,422,889 1,643,805 79,066,694 Expenditures
City Council 272,105 - - 7,500 279,605 - 279,605
City Attorney 1,461,060 42,500 - 47,000 1,550,560 1,400 1,551,960 City Clerk 581,228 - - - 581,228 - 581,228
City Manager 6,391,414 2,950,000 - - 9,341,414 - 9,341,414 Finance 1,963,136 8,326 62,671 59,400 2,093,533 27,593 2,121,126 Community Development 4,282,954 2,866,133 - - 7,149,087 - 7,149,087 Public Works 6,626,667 1,916,966 169,267 5,856,227 14,569,127 - 14,569,127 Police 16,387,157 320,000 - - 16,707,157 - 16,707,157
Non-Departmental
Capital/Technology - 2,500,000 1,223,122 300,000 4,023,122 - 4,023,122 Insurance and Settlements 1,066,347 - - - 1,066,347 - 1,066,347 IT Operations 563,660 - 15,040 578,700 - 578,700
Other Non-Departmental 1,426,731 107,201 - 3,527,143 5,061,075 1,613,925 6,675,000 Overhead Allocation (2,647,709) 855,802 190,210 1,584,413 (17,284) 17,284 - Total Expenditures 38,374,750 11,566,928 1,645,270 11,396,723 62,983,671 1,660,202 64,643,873 Net Sources / (Uses) (2,692,750) 483,430 2,887,946 13,760,592 14,439,218 (16,397) 14,422,821 Other Financing Sources / (Uses)
Transfers In - 874,812 - - 874,812 - 874,812
Transfers Out (874,812) - - - (874,812) - (874,812)
Net Operating Transfers (874,812) 874,812 - - - - -
Change in Fund Balance (3,567,562) 1,358,242 2,887,946 13,760,592 14,439,218 (16,397) 14,422,821 Other Changes (20,000,000) - - - (20,000,000) - -
Projected Fund Balance
July 01, 2025 Balance* 32,831,000 35,066,000 15,464,000 37,293,000 120,654,000 (13,944,032) 106,709,968 June 30, 2026 Balance 9,263,438 36,424,242 18,351,946 51,053,592 115,093,218 (13,960,429) 101,132,789 *Excludes certain assets, reserves, and commitments.

CITY OF EAST PALO ALTO
FY 2025-2026 BUDGET BY FUND CATEGORY
FS-3
70 GENERAL FUND OVERVIEW
General Fund
The General Fund is the primary operating fund of the City. The fund accounts for all revenues, expenditures, transfers, and other activity not accounted for in other City funds.

General Fund revenues are derived from five major sources including, Property Tax, Sales and Use Tax, Transient Occupancy Tax (TOT), Utility Users Tax, and Business License Tax. These taxes account for approximately 80% of total General Fund revenues, excluding development pass-through activity.

General Fund uses primarily consist of personnel, contract, and purchase services, supplies and materials, and other expenditures.

General Fund Reserve Sub-Funds
Information Services
The Information Services Fund accounts for the accumulation of resources to acquire or improve information technology equipment and software, fund the Redwood City IT services contract, IT equipment replacement, and software licensing and maintenance costs.

Equipment and Vehicle Replacement
The Equipment and Vehicle Replacement Fund accounts for monies utilized to acquire and replace equipment and vehicles.

Insurance Reserve
The Insurance Reserve Fund accounts for the accumulation of resources to cover the costs of unanticipated loss and settlements due to property, casualty, or liability exposures and to cover the costs of PLAN JPA insurance coverage in excess of the City’s $100,000 self-insured limit per liability claim.

Development Pass-Through
The Development Pass-Through Fund accounts for pass-through development fee activity and temporary staffing needs anticipated for unusually high development activity.

Note: No budget activity for the Contingency Reserve and Community Benefits Funds.

FS-4
71 General Fund
F110
Info Services
Reserve
F111
Equipment
and Vehicle
Reserve
F112
Insurance
Reserve F113
Development
Pass Through
F117
Eliminating Total
Revenues
Property Tax 17,773,000 - - - - - 17,773,000
Sales Tax 5,279,000 - - - - - 5,279,000
Transient Occupancy Tax 2,200,000 - - - - - 2,200,000
Business License Tax 800,000 - - - - - 800,000
Utility User Tax 2,094,000 - - - - - 2,094,000
Other Taxes 90,000 - - - - - 90,000
Licenses, Fees, and Permits 1,552,000 - - - - - 1,552,000 Charges for Services 2,719,000 - - - - - 2,719,000
Fines and Forfeitures 495,000 - - - - - 495,000
Use of Money and Property 2,010,000 - - - - - 2,010,000 Grants and Intergovernmental 65,000 - - - - - 65,000
Other Miscellaneous - - - - 605,000 - 605,000
Total Revenues 35,077,000 - - - 605,000 - 35,682,000
Expenditures
City Council 264,605 7,500 - - - 272,105
City Attorney 1,340,060 1,000 - 70,000 50,000 1,461,060 City Clerk 462,550 118,678 - - - 581,228
City Manager 5,834,445 556,969 - - - 6,391,414
Finance 1,738,522 224,614 - - - 1,963,136
Community Development 3,722,148 60,806 - - 500,000 4,282,954 Public Works 6,468,764 87,903 70,000 - - 6,626,667
Police 15,996,413 270,244 120,500 - - 16,387,157
Non-Departmental
Major Capital - - - - - -
Insurance and Settlements - - - 1,066,347 - 1,066,347
IT Operations - 563,660 - - - 563,660
Other Non-Departmental 1,426,731 - - - - 1,426,731
Overhead Allocation (2,307,892) (184,160) - (155,657) - (2,647,709) Total Expenditures 34,946,346 1,707,214 190,500 980,690 550,000 - 38,374,750 Net Sources / (Uses) 130,654 (1,707,214) (190,500) (980,690) 55,000 - (2,692,750) Other Financing Sources / (Uses)
Transfers In - 1,657,214 190,500 980,690 - (2,828,404) - Transfers Out (3,703,216) - - - - 2,828,404 (874,812)
Net Operating Transfers (3,703,216) 1,657,214 190,500 980,690 - - (874,812) Change in Fund Balance (3,572,562) (50,000) - - 55,000 - (3,567,562) Other Changes (19,945,000) - - - (55,000) - (20,000,000) Projected Fund Balance
July 01, 2025 Balance* 32,831,000 3,703,000 992,000 2,095,000 - (6,790,000) 32,831,000 June 30, 2026 Balance 9,313,438 3,653,000 992,000 2,095,000 - (6,790,000) 9,263,438 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2025-2026 GENERAL FUND BUDGET
FS-5
72 SPECIAL REVENUE FUNDS OVERVIEW
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes, other than major capital projects or debt service. GASB 54 clarifies that the proceeds of a specific revenue source, whether legal or administrative, is the foundation for classification of a Special Revenue Fund.

Community Programs
Public Safety Grants
The Public Safety Grants Fund accounts for revenues and expenditures for the Citizen Options for Public Safety Program and Supplemental Law Enforcement Services Fund (COPS/SLESF).

Federal and State Grants
Federal and State Grants Fund accounts for the Congregate Meals/Senior Nutrition and Senior Transportation grant programs passed through the San Mateo County Office of Aging and Adult Services.

Local Grants
The Local Grants Fund accounts for all other local grant activity not accounted for in separate funds.

CYSFF
The CYSFF Fund accounts for 10% of the Transient Occupancy Tax (TOT) collected as approved by voters to fund various nonprofit organizations providing services to children, youth, and families.

Housing Programs
Rent Stabilization
The Rent Stabilization Fund accounts for revenues and expenditures to support rent stabilization programs and activities.

Housing in Lieu
The Housing in Lieu Fund accounts for developer-agreed payments and ordinance fees in lieu of providing affordable housing.

Housing Assistance
The Housing Assistance Fund accounts for first time home buyer assistance program activities.

Housing Commercial Impact
The Housing Commercial Impact Fee Fund accounts for fees charged to developers of nonresidential development projects to mitigate the project impact on the need for affordable housing as a result of the project development.

Housing TOT
FS-6
73 SPECIAL REVENUE FUNDS OVERVIEW
The Housing TOT Fund accounts for 10% of the Transient Occupancy Tax (TOT) collected as approved by voters to fund affordable housing development activity and programs.

Measure HH
The Measure HH Fund accounts for a voter-approved parcel tax on commercial office space of 25,000 square feet or more collected to fund affordable and supportive housing programs; programs that facilitate citizen access to job opportunities in science, technology, engineering and mathematics (S.T.E.M.) and building trades, and strengthen the First Source Hiring Program.

Measure JJ
The Measure JJ Fund accounts for a 2.5% business license tax on gross receipts from residential rental units. At least 30% of the funds must be used for tenant rental assistance and no more than 20% of the funds may be used for staff and overhead costs to administer the tax. The remaining revenue may be used, at the city's discretion, to support affordable homeownership, preserve affordable housing, provide tenant rental assistance, or protect residents from displacement or homelessness.

Housing Successor Agency
The Housing Successor Agency Funds account for activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The funds are restricted to housing-related activities for low- and moderate-income needs.

Silicon Valley Community Foundation
The Silicon Valley Community Foundation (SVCF) Fund accounts for gift monies from SVCF for the purpose of incentivizing the affordable housing development within the City. The monies are further restricted to pay a minimum amount of $500,000 for an affordable housing manager position over a period of five years.

Transportation and Infrastructure Programs
State Gas Tax
The State Gas Tax Fund is required by State law to account for California State gasoline taxes.

This tax is primarily distributed to cities based on population and proportion of registered vehicles. Gas tax funds must be spent on public street-related maintenance and capital expenditures.

Measure A
The Measure A Fund accounts for a countywide one-half percent sale and use tax to support countywide (San Mateo County) transportation projects and programs.

NPDES
FS-7
74 SPECIAL REVENUE FUNDS OVERVIEW
The NPDES Fund accounts for revenues and expenditures from assessments levied on property in the City in compliance with the provision of the National Pollutant Elimination System for prevention of storm water and flood related damage.

Lighting District
The City maintains one Lighting District, the Ravenswood Highway Lighting District, to cover the costs of lighting on and around public streets, highways, parks, and alleys. The Lighting District Fund accounts for all revenues (assessments) and expenditures associated with the District.

Drainage District
The City maintains one Drainage District, the East Palo Alto Maintenance Drainage District, to cover the costs of providing storm drainage and flood control management services for areas related to the district boundary. The Drainage District Fund accounts for all revenues (assessments) and expenditures associated with the District.

Measure W
The Measure W Fund accounts for the City’s allocation of a voter-approved one-half percent (0.5%) sales tax enacted for thirty years to road improvements, transit services, and implementation of the San Mateo County Congestion Relief Plan.

FS-8
75 Community
Programs
Housing
Programs
Transportation
and
Infrastructure
Programs
Total
Revenues
Property Tax - - 1,059,453 1,059,453
Sales Tax - - - -
Transient Occupancy Tax 275,000 275,000 - 550,000
Business License Tax - 1,620,690 - 1,620,690
Utility User Tax - - - -
Other Taxes - 1,677,000 1,644,917 3,321,917
Licenses, Fees, and Permits - 1,394,416 - 1,394,416
Charges for Services - - 131,325 131,325
Fines and Forfeitures - 2,500 - 2,500
Use of Money and Property 234,728 656,511 808,818 1,700,058 Grants and Intergovernmental 237,000 - 1,133,000 1,370,000 Other Miscellaneous 900,000 - - 900,000
Total Revenues 1,646,728 5,626,117 4,777,513 12,050,358 Expenditures
City Council - - - -
City Attorney 15,000 27,500 - 42,500
City Clerk - - - -
City Manager 1,195,000 - 1,755,000 2,950,000
Finance - 2,442 5,884 8,326
Community Development 921 2,865,212 - 2,866,133
Public Works 123,563 - 1,793,403 1,916,966
Police 320,000 - - 320,000
Non-Departmental - - - -
Capital/Technology - - 2,500,000 2,500,000
Insurance and Settlements - - - -
IT Operations - - - -
Other Non-Departmental - 13 107,188 107,201
Overhead Allocation 9,011 344,398 502,393 855,802
Total Expenditures 1,663,495 3,239,565 6,663,868 11,566,928 Net Sources / (Uses) (16,767) 2,386,552 (1,886,355) 483,430 Other Financing Sources / (Uses)
Transfers In - - 874,812 874,812
Transfers Out - - - -
Net Operating Transfers - - 874,812 874,812
Change in Fund Balance (16,767) 2,386,552 (1,011,543) 1,358,242 Other Changes - - - -
Projected Fund Balance
July 01, 2025 Balance* 2,364,000 16,109,000 16,593,000 35,066,000 June 30, 2026 Balance 2,347,233 18,495,552 15,581,457 36,424,242 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2025-2026 SPECIAL REVENUE FUNDS BUDGET
FS-9
76 Public Safety
Grants
F213
Federal and
State Grants
F215
Local
Grants
F230
CYSFF
TOT
F231
Measure
C
F232
Total
Community
Programs
Revenues
Property Tax - - - - - -
Sales Tax - - - - - -
Transient Occupancy Tax - - - 275,000 - 275,000
Business License Tax - - - - - -
Utility User Tax - - - - - -
Other Taxes - - - - - -
Licenses, Fees, and Permits - - - - - -
Charges for Services - - - - - -
Fines and Forfeitures - - - - - -
Use of Money and Property 19,839 18,064 152,314 44,511 - 234,728 Grants and Intergovernmental 230,000 7,000 - - - 237,000 Other Miscellaneous - 750,000 150,000 - - 900,000
Total Revenues 249,839 775,064 302,314 319,511 - 1,646,728 Expenditures
City Council - - - - - -
City Attorney - - 15,000 - - 15,000
City Clerk - - - - - -
City Manager - - 590,000 605,000 - 1,195,000
Finance - - - - - -
Community Development - 921 - - - 921
Public Works - - 123,563 - - 123,563
Police 170,000 - 150,000 - - 320,000
Non-Departmental - - - -
Capital/Technology - - - - - -
Insurance and Settlements - - - - - -
IT Operations - - - - - -
Other Non-Departmental - - - - - -
Overhead Allocation - - - 9,011 - 9,011
Total Expenditures 170,000 921 878,563 614,011 - 1,663,495 Net Sources / (Uses) 79,839 774,143 (576,249) (294,500) - (16,767) Other Financing Sources / (Uses)
Transfers In - - - - - -
Transfers Out - - - - - -
Net Operating Transfers - - - - - -
Change in Fund Balance 79,839 774,143 (576,249) (294,500) - (16,767) Other Changes - - - - - -
Projected Fund Balance
July 01, 2025 Balance* 429,000 378,000 663,000 894,000 - 2,364,000 June 30, 2026 Balance 508,839 1,152,143 86,751 599,500 - 2,347,233 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2025-2026 COMMUNITY PROGRAMS BUDGET
FS-10
77 Rent
Stabilization
F204
Housing In
Lieu
F207
Housing
Assistance
F209
Housing
Commercial
Impact F216
Housing TOT
F218
Measure HH
F219
Housing
Successor
F220
Silicon Valley
Community
F233
Measure JJ
F235
Total
Revenues
Property Tax - - - - - - - - - -
Sales Tax - - - - - - - - - -
Transient Occupancy Tax - - - - 275,000 - - - - 275,000 Business License Tax - - - - - - - - 1,620,690 1,620,690 Utility User Tax - - - - - - - - - -
Other Taxes - - - - - 1,677,000 - - - 1,677,000
Licenses, Fees, and Permits 782,000 612,416 - - - - - - - 1,394,416 Charges for Services - - - - - - - - - -
Fines and Forfeitures 2,500 - - - - - - - - 2,500
Use of Money and Property 19,732 260,317 14,223 - 80,058 244,407 37,774 - - 656,511 Grants and Intergovernmental - - - - - - - - - -
Other Miscellaneous - - - - - - - - - -
Total Revenues 804,232 872,733 14,223 - 355,058 1,921,407 37,774 - 1,620,690 5,626,117 Expenditures
City Council - - - - - - - - - -
City Attorney - - - - - - 27,500 - - 27,500
City Clerk - - - - - - - - - -
City Manager - - - - - - - - - -
Finance - - - - - 2,442 - - - 2,442
Community Development 497,620 173,794 2,255 37,500 23,124 1,102,668 222,519 - 805,732 2,865,212 Public Works - - - - - - - - - -
Police - - - - - - - - - -
Non-Departmental
Capital/Technology - - - - - - - - - -
Insurance and Settlements - - - - - - - - - -
IT Operations - - - - - - - - - -
Other Non-Departmental - - - - - 13 - - - 13
Overhead Allocation 317,435 10,466 8,981 - 7,516 - - - - 344,398 Total Expenditures 815,055 184,260 11,236 37,500 30,640 1,105,123 250,019 - 805,732 3,239,565 Net Sources / (Uses) (10,823) 688,473 2,987 (37,500) 324,418 816,284 (212,245) - 814,958 2,386,552 Other Financing Sources / (Uses)
Transfers In - - - - - - - - - -
Transfers Out - - - - - - - - - -
Net Operating Transfers - - - - - - - - - -
Change in Fund Balance (10,823) 688,473 2,987 (37,500) 324,418 816,284 (212,245) - 814,958 2,386,552 Other Changes - - - - - - - - - -
Projected Fund Balance
July 01, 2025 Balance* 214,000 5,383,000 396,000 - 2,364,000 7,218,000 534,000 - - 16,109,000 June 30, 2026 Balance 203,177 6,071,473 398,987 (37,500) 2,688,418 8,034,284 321,755 - 814,958 18,495,552 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2025-2026 HOUSING PROGRAMS BUDGET
FS-11
78 State Gas Tax
F201
Measure A
F202
NPDES
F203
Park in Lieu
F206
Lighting
District
F221
Drainage
District
F222
Measure W
F234
Total
Revenues
Property Tax - - - - 892,289 167,164 - 1,059,453
Sales Tax - - - - - - - -
Transient Occupancy Tax - - - - - - - -
Business License Tax - - - - - - - -
Utility User Tax - - - - - - - -
Other Taxes 1,644,917 - - - - - - 1,644,917
Licenses, Fees, and Permits - - - - - - - -
Charges for Services - - 131,325 - - - - 131,325
Fines and Forfeitures - - - - - - - -
Use of Money and Property 205,886 243,588 18,917 13,193 234,247 43,700 49,288 808,818 Grants and Intergovernmental - 772,500 - - - - 360,500 1,133,000 Other Miscellaneous - - - - - - - -
Total Revenues 1,850,803 1,016,088 150,242 13,193 1,126,536 210,864 409,788 4,777,513 Expenditures
City Council - - - - - - - -
City Attorney - - - - - - - -
City Clerk - - - - - - - -
City Manager - - - - 1,755,000 - - 1,755,000
Finance - 1,792 2,300 - - - 1,792 5,884
Community Development - - - - - - - -
Public Works 651,887 - 627,831 - 177,463 336,222 - 1,793,403 Police - - - - - - - -
Non-Departmental
Capital/Technology - - - - 2,500,000 - - 2,500,000
Insurance and Settlements - - - - - - - -
IT Operations - - - - - - - -
Other Non-Departmental 89,783 - 9,963 - 5,808 1,634 - 107,188 Overhead Allocation 161,756 53,243 149,860 1,080 53,890 63,760 18,804 502,393 Total Expenditures 903,426 55,035 789,954 1,080 4,492,161 401,616 20,596 6,663,868 Net Sources / (Uses) 947,377 961,053 (639,712) 12,113 (3,365,625) (190,752) 389,192 (1,886,355) Other Financing Sources / (Uses)
Transfers In 64,500 - 622,994 - - 187,318 - 874,812
Transfers Out - - - - - - - -
Net Operating Transfers 64,500 - 622,994 - - 187,318 - 874,812 Change in Fund Balance 1,011,877 961,053 (16,718) 12,113 (3,365,625) (3,434) 389,192 (1,011,543) Other Changes - - - - - - - -
Projected Fund Balance
July 01, 2025 Balance* 3,676,000 3,650,000 (20,000) 375,000 6,487,000 953,000 1,472,000 16,593,000 June 30, 2026 Balance 4,687,877 4,611,053 (36,718) 387,113 3,121,375 949,566 1,861,192 15,581,457 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2025-2026 INFRASTRUCTURE PROGRAMS BUDGET
FS-12
79 CAPITAL FUNDS OVERVIEW
Capital Funds account for major capital acquisitions, construction activities, and major renovation or replacement of general government assets. Capital Improvement projects accounts in these funds are primarily funded through General Fund transfers, federal and state grants, restricted settlements related to capital, and impact fees charged to developers to mitigate the impact of projects on the City’s infrastructure systems.

Capital Improvement
The Capital Improvement Fund accounts for the primary capital asset study, design, construction and management of the city’s major infrastructure system improvements such as streets, sidewalks, parks, facilities, and storm drains. Major asset construction related to the City’s water infrastructure are accounted in the Water Enterprise Fund.

Parks and Trails Impact
The Park and Trails Impact Fund accounts for fees charged to developers to mitigate the project impact on the City’s parks, trails, and open space infrastructure. Such fees will fund park projects and land acquisitions to provide adequate quality open space – through parks and trails – for the broader public health and quality of life of its citizens and workforce.

Public Facilities Impact
The Park and Trails Impact Fund accounts for fees charged to developers to mitigate the project impact for the provision of adequate public facilities including police department, educational amenities such as libraries, governance buildings, and community service centers.

Transportation Infrastructure Impact
The Park and Trails Impact Fund accounts for fees charged to developers to mitigate the project impact for the provision of public roads and multi-modal streetscape facilities. In addition, constructing sidewalks with street trees, street lighting, benches, and street furniture improves safety, sidewalk space, pedestrian aesthetics, and active transportation.

RBD -I Impact
The RBD-I Impact Fund accounts for fees charged to developers to mitigate the project impact for the provision of adequate storm drainage infrastructure to prevent flooding for development specifically inside the Ravenswood Business District.

RBD -O Impact
The RBD-O Impact Fund accounts for fees charged to developers to mitigate the project impact for the provision of adequate storm drainage infrastructure to prevent flooding for development specifically for all other city areas outside the Ravenswood Business District.

FS-13
80 This Page Intentionally Left Blank
FS-14
81 Capital
Improvement
F301/303
Parks and
Trails Impact
F305
Public
Facilities
Impact
F306
Transportatio
n Impact
F307
RBD-I
Storm Drain
Impact
F308
RBD-O
Storm Drain
Impact
F309
Total
Revenues
Property Tax - - - - - - -
Sales Tax - - - - - - -
Transient Occupancy Tax - - - - - - -
Business License Tax - - - - - - -
Utility User Tax - - - - - - -
Other Taxes - - - - - - -
Licenses, Fees, and Permits - 3,003,316 178,223 40,591 - 468,969 3,691,099 Charges for Services - - - - - - -
Fines and Forfeitures - - - - - - -
Use of Money and Property 633,115 19,254 34,458 20,504 13,060 12,725 733,117 Grants and Intergovernmental 109,000 - - - - - 109,000
Other Miscellaneous - - - - - - -
Total Revenues 742,115 3,022,570 212,681 61,095 13,060 481,694 4,533,216 Expenditures
City Council - - - - - - -
City Attorney - - - - - - -
City Clerk - - - - - - -
City Manager - - - - - - -
Finance 62,671 - - - - - 62,671
Community Development - - - - - - -
Public Works 169,267 - - - - - 169,267
Police - - - - - - -
Non-Departmental
Capital/Technology 1,223,122 - - - - - 1,223,122
Insurance and Settlements - - - - - - -
IT Operations - - - - - -
Other Non-Departmental - - - - - - -
Overhead Allocation 180,233 2,125 2,125 2,233 1,873 1,621 190,210 Total Expenditures 1,635,293 2,125 2,125 2,233 1,873 1,621 1,645,270 Net Sources / (Uses) (893,178) 3,020,445 210,556 58,862 11,187 480,073 2,887,946 Other Financing Sources / (Uses)
Transfers In - - - - - - -
Transfers Out - - - - - - -
Net Operating Transfers - - - - - - -
Change in Fund Balance (893,178) 3,020,445 210,556 58,862 11,187 480,073 2,887,946 Other Changes - - - - - - -
Projected Fund Balance
July 01, 2025 Balance* 12,846,000 510,000 919,000 497,000 357,000 335,000 15,464,000 June 30, 2026 Balance 11,952,822 3,530,445 1,129,556 555,862 368,187 815,073 18,351,946 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2025-2026 CAPITAL PROJECT FUNDS BUDGET
FS-15
82 ENTERPRISE FUNDS OVERVIEW
Enterprise Funds account for City operations financed and operated in a manner similar to a private business enterprise. Government-run enterprises often charge user-fees to support the service or product provided. These activities are not necessarily self-supporting and may rely on general government subsidies to fully fund operations, though it is the intent of the City to fund these services primarily through user charges.

Garbage Collection Fund
Garbage collection services and recycling in East Palo Alto is provided by Recology of San Mateo County. Revenues are primarily derived from solid waste service fees.

The Garbage Collection Fund accounts for activities associated with residential and commercial garbage collection, street sweeping, litter control, and related services. Fees for litter control are collected by the South Bay Waste Management Authority (SBWMA) from both residential and commercial customers.

The City collects residential solid waste collection fees directly from the property tax rolls and remits such fees to Recology of San Mateo County for services provided to those customers.

Sewer Service Funds
For external financial reporting, sewer services are reported as a self-supporting enterprise fund covering the operations, maintenance, and capital improvements of the East Palo Alto Sanitary District (EPASD), a subsidiary of the City. For internal management, the District maintains two enterprise funds: one for operating and capital activities, and another to track developer impact fee (connection fee) revenues and related expenditures.

Water Service Funds
Most of East Palo Alto’s water connections (about 80%) are served by the City’s water system that is operated and leased by Veolia Water North America Operating Services LLC (Veolia). The remaining connections are served by Palo Alto Park Mutual Water Company or O’Connor Tract Co-op Water Company. Veolia supplies the City’s water from the San Francisco Public Utilities Commission.

Water Service Fund accounts for lease operating revenue from Veolia. The fund group includes Capital and Meter surcharges and Water Capacity Fees. The surcharge funds are used for capital improvement costs related to the City's operating obligations under the agreement with Veolia.

The fund group also includes the Capital and Meter Surcharges, Water Capacity Fees.

FS-16
83 Water
Lease
F510
Water Capital
F511
Water Meter
F512
Water
Capacity
F513
Sub-total
Water
Enterprise
Garbage
Service
F520
Sewer
Services
F530
Sewer
Connection
F533
Total
Revenues
Property Tax - - - - - - 1,700,000 - 1,700,000
Sales Tax - - - - - - - - -
Transient Occupancy Tax - - - - - - - - -
Business License Tax - - - - - - - - -
Utility User Tax - - - - - - - - -
Other Taxes - - - - - - - - -
Licenses, Fees, and Permits - - - 5,463,578 5,463,578 - - - 5,463,578 Charges for Services 12,000 1,088,370 - - 1,100,370 3,500,000 5,250,000 - 9,850,370 Fines and Forfeitures - - - - - - - - -
Use of Money and Property 494,368 456,703 63,798 34,548 1,049,417 69,257 841,360 - 1,960,034 Grants and Intergovernmental - - - - - - - - -
Other Miscellaneous - 23,333 - - 23,333 250,000 - 5,910,000 6,183,333 Total Revenues 506,368 1,568,406 63,798 5,498,126 7,636,698 3,819,257 7,791,360 5,910,000 25,157,315 Expenditures
City Council - - - - - - 7,500 - 7,500
City Attorney 5,000 - - - 5,000 - 42,000 - 47,000
City Clerk - - - - - - - - -
City Manager - - - - - - - - -
Finance - - - - - 2,300 57,100 - 59,400
Community Development - - - - - - - - -
Public Works 349,533 5,000 - - 354,533 294,027 5,207,667 - 5,856,227 Police - - - - - - - - -
Non-Departmental -
Capital/Technology - 150,000 - - 150,000 - 150,000 - 300,000 Insurance and Settlements - - - - - - - - -
IT Operations - - - - - - 15,040 - 15,040
Other Non-Departmental 18,068 - - - 18,068 3,509,075 - - 3,527,143 Overhead Allocation 202,218 29,022 7,405 2,665 241,310 219,730 1,123,373 - 1,584,413 Total Expenditures 574,819 184,022 7,405 2,665 768,911 4,025,132 6,602,680 - 11,396,723 Net Sources / (Uses) (68,451) 1,384,384 56,393 5,495,461 6,867,787 (205,875) 1,188,680 5,910,000 13,760,592 Other Financing Sources / (Uses)
Transfers In - - - - - - - - -
Transfers Out - - - - - - - - -
Net Operating Transfers - - - - - - -
Change in Fund Balance (68,451) 1,384,384 56,393 5,495,461 6,867,787 (205,875) 1,188,680 5,910,000 13,760,592 Other Changes - - - - - - - - -
Projected Fund Balance
July 01, 2025 Balance* 3,231,000 8,742,000 1,489,000 (3,847,000) 12,248,000 1,415,000 22,203,000 1,427,000 37,293,000 June 30, 2026 Balance 3,162,549 10,126,384 1,545,393 1,648,461 19,115,787 1,209,125 23,391,680 7,337,000 51,053,592 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2025-2026 ENTERPRISE FUNDS BUDGET
FS-17
84 FY 2022-23
ACTUAL
FY 2023-24
ACTUAL
FY 2024-25

ADOPTED
FY 2025-26

PROPOSED
Property Tax $ 19,892,870 $ 18,796,350 $ 17,384,764 $ 17,773,000 Sales Tax $ 6,394,903 $ 6,019,894 $ 6,219,000 $ 5,279,000 Transient Occupancy Tax $ 1,778,986 $ 2,021,494 $ 2,200,000 $ 2,200,000 Utility User Tax $ 1,936,239 $ 2,052,280 $ 1,788,874 $ 2,094,000 Business License Tax $ 1,768,500 $ 2,290,256 $ 2,310,000 $ 800,000 Permit, Fees, & Charges for Services $ 2,379,954 $ 2,126,458 $ 4,629,170 $ 4,271,000 Other Revenues and Transfers In $ 4,533,534 $ 4,405,823 $ 2,955,000 $ 3,265,000 Total General Fund Revenues 38,684,986 37,712,555 37,486,808 35,682,000

GENERAL FUND REVENUES BY MAJOR CATEGORY
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
FY 2022-23 ACTUAL FY 2023-24 ACTUAL FY 2024-25

ADOPTED
FY 2025-26

PROPOSED
$19,892,870 $18,796,350 $17,384,764
$17,773,000
$6,394,903 $6,019,894
$6,219,000
$5,279,000
$4,533,534 $4,405,823 $2,955,000 $3,265,000
$2,379,954 $2,126,458 $4,629,170 $4,271,000
$1,768,500 $2,290,256
$2,310,000 $800,000
$1,936,239 $2,052,280 $1,788,874
$2,094,000
$1,778,986 $2,021,494 $2,200,000
$2,200,000
Revenue by Category
Property Tax
Sales Tax
Transient Occupancy Tax
Utility User Tax
Business License Tax
Permit, Fees, & Charges for
Services
Other Revenues and
Transfers In
FS-18
85 FY 2022-23
ACTUAL
FY 2023-24
ACTUAL
FY 2024-25

ADOPTED
FY 2025-26

PROPOSED
Personnel $ 15,782,960 $ 17,629,619 $ 21,769,063 $ 23,601,547Professional/Technical Services $ 6,742,831 $ 5,852,414 $ 8,945,340 $ 9,783,967Other Services/Supplies $ 5,562,024 $ 4,791,228 $ 5,722,265 $ 6,967,145Capital, Transfers, and Other Expenditures $ 8,744,521 $ 4,721,810 $ 2,109,378 $ 1,544,612Total General Fund Expenditures Before Allocations 36,832,336 $ $ 32,995,071 $ 38,546,046 $ 41,897,271Overhead Allocation to Other Funds $ (861,730) $ (913,434) $ (929,182) $ (2,647,709) Total Net General Fund Expenditures 35,970,606 $ $ 32,081,637 $ 37,616,864 $ 39,249,562

GENERAL FUND EXPENDITURES BY MAJOR CATEGORY
$-
$5,000,000
$10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 FY 2022-23
ACTUAL
FY 2023-24
ACTUAL
FY 2024-25

ADOPTED
FY 2025-26

PROPOSED
$15,782,960 $17,629,619
$21,769,063 $23,601,547
$6,742,831 $5,852,414
$8,945,340
$9,783,967
$5,562,024 $4,791,228
$5,722,265
$6,967,145
$8,744,521
$4,721,810
$2,109,378
$1,544,612
Expenditure by Category Other Expenditures Property Services/Supplies Professional/Technical Services Personnel
86 FS-19
This Page Intentionally Left Blank
FS-20
87 CITY COUNCIL
FY 2025-2026 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2025-26
Operating $279,605
Positions 5
DB-1
88 Department Summary
SOURCES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Actual Actual Adopted Proposed
General Fund
Charges/Fees for Services - - - -
Use of Resources 153,818 150,382 190,693 279,605
Special Revenue Funds - - - -
Capital Project Fund - - - -
Enterprise Funds - - - -
Succesor Agency Trust Fund - - - -
TOTAL 153,818 150,382 190,693 279,605
EXPENDITURES BY DEPARTMENT FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
City Council 153,818 150,382 190,693 279,605
TOTAL 153,818 150,382 190,693 279,605
CHARACTER OF EXPENDITURES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Personnel
Salaries and Benefits 84,614 97,496 126,193 152,743
Subtotal 84,614 97,496 126,193 152,743
Supplies and Services
Purchased Services 60,980 50,424 62,500 117,362
Supplies and Materials 8,224 2,462 2,000 2,000
Capital Expenditures - - - 7,500
Other Expenditures - - - -
Subtotal 69,204 52,886 64,500 126,862
TOTAL 153,818 150,382 190,693 279,605
AUTHORIZED STRENGTH FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Mayor 1.00 1.00 1.00 1.00
Vice Mayor 1.00 1.00 1.00 1.00
Council Member 3.00 3.00 3.00 3.00
TOTAL 5.00 5.00 5.00 5.00
FY 2025-2026 Budget

CITY COUNCIL
DB-2
89 CITY COUNCIL
FY 2025-2026 Budget
Department Summary
A five-member Council governs City services for a population of approximately 28,216 residents. Each Council Member is elected at large and serves a four-year term. The Mayor is appointed by the members of the Council and serves a one-year term. The Council convenes in regular session on the 1st and 3rd Tuesdays of each month (except for an annual recess during the month of August) and often holds special meetings and work study sessions throughout the year. All meetings are held in the East Palo Alto (EPA) Government Center, located in the City Council Chambers at 2415 University Avenue or available through designated media channels.

The Council adopts policies, resolutions and ordinances for City operations and ensures appropriate representation and response to citizen interests. The City Council appoints the City Manager and City Attorney, who report directly to them, and in turn, support the City Council in its policy development functions and carry out the City Council policies and programs.

SIGNIFICANT CHANGES
FY 2024-2025 to FY 2025-2026 Budget:

The increase of $88,912 (+46.6%) from the FY 2024-25 Adopted Budget to the FY 2025-26 Proposed Budget is primarily due to the increase of salaries and benefits by $26,550, professional, technical and other services by $54,862, and an additional $7,500 for furniture and fixtures under $5k.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2024-25 Adopted $190,693
2025-26 Proposed $279,605 $88,912 46.6%

PURPOSE
The City Council develops and adopts policies that ensure delivery of quality public services to the people of East Palo Alto in order to create a healthy, safe, and prosperous environment.

DB-3
90 CITY COUNCIL
FY 2025-2026 Budget
Total FTE’s: 5.0
MAYOR
Martha Barragan
Vice Mayor
Mark Dinan
Council Member
Carlos Romero
Council Member
Ruben Abrica
Council Member
Webster Lincoln
DB-4
91 CITY ATTORNEY’S OFFICE
FY 2025-2026 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2025-26
Operating $1,551,960
Positions 3
DB-5
92 SOURCES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Actual Actual Adopted Proposed
General Fund
Charges/Fees for Services - -
Use of Resources 655,371 957,282 1,031,428 1,461,060
Special Revenue Funds 21,681 6,987 35,000 42,500
Capital Project Fund - - - -
Enterprise Funds - 5,000 - 47,000
Succesor Agency Trust Fund - - 7,500 1,400
TOTAL 677,052 969,269 1,073,928 1,551,960
EXPENDITURES BY DEPARTMENT FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
City Attorney's Office 677,052 969,269 1,073,928 1,551,960 TOTAL 677,052 969,269 1,073,928 1,551,960
CHARACTER OF EXPENDITURES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Personnel
Salaries and Benefits 261,740 478,172 641,128 709,510
Subtotal 261,740 478,172 641,128 709,510
Supplies and Services
Purchased Services 408,678 488,089 387,950 798,600
Supplies and Materials 6,634 3,008 7,750 5,750
Capital Expenditures - - 37,100 38,100
Other Expenditures - - - -
Subtotal 415,312 491,097 432,800 842,450
TOTAL 677,052 969,269 1,073,928 1,551,960
AUTHORIZED STRENGTH FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
City Attorney 1.00 1.00 1.00 1.00
Deputy City Attorney I/II 1.00 1.00 1.00 1.00
Paralegal1 - - - 1.00
Legal Assistant 1.00 1.00 1.00 -
TOTAL 3.00 3.00 3.00 3.00
Department Summary

CITY ATTORNEY'S OFFICE
FY 2025-2026 Budget
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93 CITY ATTORNEY’S OFFICE
FY 2025-2026 Budget
Department Summary
The role of the City Attorney’s Office is to provide advisory and litigation services to the City, as represented by the City Council, City Council-appointed boards, commissions and committees, and City departments. The Office has a staffing level of three positions: City Attorney, Deputy City Attorney and Legal Assistant.

The emphasis in the Fiscal Year 2025-2026 budget is the continued delivery of quality professional legal services which promote reliable and useful advice and effective advocacy. The basic services include attendance and advice at public meetings, drafting resolutions and ordinances, providing legal opinions and advice on a wide range of municipal topics, reviewing and drafting legal documents and contracts, providing advice regarding elected and appointed public officials’ conflicts of interest, representing the City in litigation before courts and administrative agencies and settling claims and lawsuits based on an impartial evaluation of their merits.

Within each of the basic services provided, the City Attorney’s Office undertakes projects that specifically address the City Council’s Strategic Plan Goals and Objectives:
• Provide proactive legal advice to the City Council and City staff, including provide regular legal updates to the Council and staff on legal developments that impact the City (e.g., El Dorado County case involving impact fees, Coalition on Homelessness case impacting public camping enforcement, Sutter’s Place case affecting regulatory fees, Pimental case and Humboldt case relating to fines and penalties, 1001 Buddhas case relating to building appeals, etc.);
• Issue opinions and draft documents that help achieve the City Council’s Strategic Plan and the City Manager’s priority action items;
• Advise on significant changes in state and federal law and other regulations impacting City operations and programs, including instituting a working group within the City to observe legislative changes and take affirmative steps to ensure compliance; • Present Brown Act, Conflict of Interest (Levine Act), and Public Records Act training to the City staff, boards and commissions, and provide legal advice regarding the same; • Defend the City’s interest in court and administrative hearings and initiate legal action to protect the rights and enhance the quality of life of City residents; • Provide objective and reasonable interpretation of City Council-adopted policies, state and local laws and other matters, as appropriate;

MISSION STATEMENT
Provide legal advice and representation, consistent with the highest professional and ethical standards, to the City Council, City officers, City employees, and appointed boards, commissions, and committees in carrying out the City Council’s policies and strategic goals and objectives and advancing the City’s interest in serving the people of East Palo Alto while limiting risk to the entity and costs to the taxpayers.

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94 CITY ATTORNEY’S OFFICE
FY 2025-2026 Budget
Department Summary
(Continued)
• Draft ordinances on topics designated as high priority by the City Council (e.g., Procurement Ordinance or Rent Registry Ordinance);
• Update, revise and add provisions to the Municipal Code and local zoning law as required, including revisions to the Zoning Ordinance related to adoption of the Housing Element; • Work with the City Manager’s Office to reduce exposure to claims, litigation and industrial injuries/illnesses;
• Support the Rent Stabilization Program, including providing legal advice to staff and the Rent Stabilization Board; preparing reports and analyzing appeals; updating program regulations; attending board meetings; and
• Support the Community and Economic Development Department, including providing legal advice to staff and the Planning Commission, attending Commission meetings and analyzing land use issues related to adopted development projects.

SIGNIFICANT CHANGES
FY 2024-2025 to FY 2025-2026 Budget:

The increase of $478,032 (+44.5%) from the FY 2024-25 Adopted Budget to the FY 2025-26 Proposed Budget is primarily due to the personnel expenses increased by $68,382, legal and accounting services by $151,250, and several purchased services by $258,400.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2024-25 Adopted $1,073,928
2025-26 Proposed $1,551,960 $478,032 44.5%
DB-8
95 CITY ATTORNEY’S OFFICE
FY 2025-2026 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Attend and provide advice at City Council
meetings and provide the City Council an
update of any relevant changes in applicable
law, including regarding public meetings and
conflicts of interest.

Accomplished and ongoing.

2. Assist the City Council and the City
Manager’s Office to implement Council
priorities.

Accomplished and ongoing.

3. Attend and provide advice at Planning
Commission meetings.

Accomplished and ongoing.

4. Attend and provide advice at Rent
Stabilization Board meetings.

Accomplished and ongoing.

5. Provide training to City boards,
commissions, and committees regarding the
Brown Act, Public Records Act, conflict of
interest laws, and other relevant areas of the
law.

Accomplished.

Ongoing: How to Run a Meeting training for Senior
Advisory Committee.

6. Represent the City in lawsuits and
administrative hearings and pursue costeffective resolution of pending litigation matters and the processing and settlement of
claims filed against the City, including
affirmative litigation opportunities (e.g.,
PCBs, PFAS/PFOS, etc.).

Accomplished: represented City in small claims
action, represented City in defensive action
challenging the absorption of the District as a
subsidiary.

Ongoing: current litigation docket.

7. Provide legal advice to all City departments
regarding responses to PRA requests, record
retention and subpoenas, including
revamping the City’s review, response and
compliance with such requests by providing
trainings to staff, assisting in
procurement/implementation of related
tracking and review software and
establishing a procedure for responding to
requests for Council or Boards/Commissions.

Accomplished:
• Advised staff and consultant in the face of
potential litigation related to nexus study
updating development impact fees.
• Advised Planning and Housing Staff at
regular internal meetings on various issues
that arise.

Ongoing: Legal advice.

8. Draft, review, and process City contracts,
agreements, and other legal documents,
including conducting prophylactic legal
analysis of lease with Veolia for legal issues
and helping to analyze options for provision
of water services, including continuation of
service by Veolia through a negotiated lease
or other vendor, as appropriate.

Accomplished: Reviewed nearly 150 contracts,
including soil stock piling agreement, revamped
insurance requirements, and provided various
individual trainings on contracts and insurance
requirements.

Ongoing: reviewing contracts and actively seeking
opportunities to streamline review and approval of
contracts.

DB-9
96 CITY ATTORNEY’S OFFICE
FY 2025-2026 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

9. Support the City Council, Human Resources,
and other City departments on labor and
employment matters.

Ongoing: current labor and employment matters.

10. Provide legal advice to the City Council,
Planning Commission and City departments
on major project applications, including
Ravenswood Business District Specific Plan
Update, amendment to Sand Hill’s Four
Corner Project, resurrecting City Attorney
staffing of the Development Review
Committee (DRC) to ensure Planning staff
receive end-to-end legal support and provide
support on specific major projects, and assist
staff in developing a licensing/regulatory
regime for pop-up unlicensed businesses.

Accomplished. Legal support for the RBD Specific
Plan Update has been completed in December of
2024.

Ongoing: Sidewalk vending regulatory regime. Four
Corners Project.

11. Support the Public Works Department on
various matters, including water
infrastructure, sewer-related matters, storm
preparation, training on public works
procurement and contract review, legal risk
analysis for legacy contamination sites
(Romic, etc.).

Accomplished:
• Advise staff on updating of public works
procurement contracts.
• Advised staff on potential claims, if any,
against successor to Romic site.

Ongoing: general legal advice.

12. Provide training to staff on various issues,
including staff report writing, legal
compliance issues, including Levine Act and
procurement procedures.

Accomplished:
• Assisted in initial trainings on new
procurement ordinance.

13. Assist with the drafting and legal risk
analysis of various ordinances, including
Tobacco Retailer Ordinance, Animal Control
Ordinance, Sanitary District Ordinances
(e.g., District Code, FOG Ordinance, Board
Salary Ordinance), Amended Reach Code
Ordinance, City Council Salary Ordinance),
and Updated Procurement Ordinance.

Accomplished. The city adopted several ordinances
in 2024, including Tobacco Retailer Ordinance,
Animal Control Ordinance, Sanitary District
Ordinances (e.g., District Code, FOG Ordinance,
Board Salary Ordinance), Amended Reach Code
Ordinance, City Council Salary Ordinance, and
updated the Procurement Ordinance in 2025.

Ongoing: Illegal Fireworks Ordinance, Sidewalk
Vending Ordinance, Title 2 Amendments to codify
responsibilities for City Attorney/District Counsel
and City Manager/General Manager.

14. Provide legal support for various initiatives,
including absorption of the East Palo Alto
Sanitary District into the City as a
Subsidiary, updating enforcement of
requirements under the BMR program,
exercising eminent domain where legally
Accomplished.
• The EPA Sanitary District became a
subsidiary of the City on October 1, 2024.

DB-10
97 CITY ATTORNEY’S OFFICE
FY 2025-2026 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS
required (e.g., Pet Hospital for Gateway 101
traffic mitigations), and assist staff in
establishing a program to address illegal
dumping.
• The City Attorney's Office established an
BMR enforcement working group, whose
work is ongoing.
• Analyzed first Disparate Impact Analysis
(965 Weeks) and revised Local Preference
Guidelines.
• Reviewed and advised staff on the
development and implementation of Bagand-Tag Policy.

Ongoing:
• Updating enforcement requirements under
the BMR program.
• Exercising eminent domain: road widening
at both Bay Road and Donohoe Street.
• Establishing a program to address illegal
dumping.
• Analyzing options for ending the use of
Infinity Salvage wrecking yard in the RBD
Specific Plan Area.
• Analyzing options for stopping
encroachments along the Baylands.
• Analyzing options concerning public streets
near to Palo Alto Park Mutual Water
Company.
• Member of Internal Homelessness Task
Force formed to respond to homeless
encampments, including in San
Francisquito Creek, Weeks Street, etc.
• Initiating potential nuisance action
involving Curtaccio Property.

DB-11
98 CITY ATTORNEY’S OFFICE
FY 2025-2026 Budget

OBJECTIVES

1. Attend and provide advice at City Council meetings and EPASD Board meetings and provide the City Council an update of any relevant changes in applicable law, including, regarding public meetings and conflicts of interest.

2. Assist the City Council and the City Manager’s Office implement Council priorities.

3. Attend and provide advice at Planning Commission meetings.

4. Attend and provide advice at Rent Stabilization Board meetings.

5. Provide training to City boards, commissions, and committees regarding the Brown Act, Public Records Act, conflict of interest laws, and other relevant areas of the law.

6. Represent the City in lawsuits and administrative hearing and pursue cost-effective resolution of pending litigation matters and the processing and settlement of claims filed against the City, including affirmative litigation opportunities (e.g., PCBs, PFAS/PFOS, etc.)

7. Provide legal advice to all City departments regarding responses to PRA requests, record retention and subpoenas, including response and compliance with such requests by providing trainings to staff, assisting in procurement/implementation of related tracking and review software and establishing a procedure for responding to requests for Council or Boards/Commissions.

8. Draft, review, and process City contracts, agreements, and other legal documents.

9. Support the City Council, Human Resources, and other City departments on labor and employment matters.

10. Provide legal advice to the City Council, Planning Commission and City departments on major project applications, including Ravenswood Business District Specific Plan Update.

11. Support the Public Works Department on various matters, including water infrastructure, and sewerrelated matters.

12. Provide training to staff on various different issues, including staff report writing, contractual risk transfer and procurement procedures.

13. Assist with the drafting and legal risk analysis of various ordinances, including the Illegal Fireworks Ordinance, Sidewalk Vending Ordinance, TDM Ordinance, First Source Hiring, etc.

14. Provide legal support for various initiatives, including City Attorney Work Plan.

DB-12
99 Total FTE’s: 3.0
CITY ATTORNEY’S OFFICE
FY 2025-2026 Budget
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\lCITY ATTORNEY
John Le
Paralegal
Deputy City Attorney I/II
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DB-14
101
CITY CLERK’S OFFICE
FY 2025-2026 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2025-26
Operating $581,228
Positions 2
DB-15
102
Department Summary
SOURCES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Actual Actual Adopted Proposed
General Fund
Charges/Fees for Services - - - -
Use of Resources 261,418 265,775 592,026 581,228
Special Revenue Funds - - - -
Capital Project Fund - - - -
Enterprise Funds - - - -
Succesor Agency Trust Fund - - - -
TOTAL 261,418 265,775 592,026 581,228
EXPENDITURES BY DEPARTMENT FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
City Clerk's Office 261,418 265,775 592,026 581,228
TOTAL 261,418 265,775 592,026 581,228
CHARACTER OF EXPENDITURES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Personnel
Salaries and Benefits 136,596 179,853 291,576 289,840
Subtotal 136,596 179,853 291,576 289,840
Supplies and Services
Purchased Services 121,992 84,551 297,900 289,088
Supplies and Materials 2,830 1,371 2,550 2,300
Capital Expenditures - - - -
Other Expenditures - - - -
Subtotal 124,822 85,922 300,450 291,388
TOTAL 261,418 265,775 592,026 581,228
AUTHORIZED STRENGTH FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
City Clerk - Public Information Officer 1.00 1.00 1.00 1.00 Office Assistant 0.00 0.00 1.00 1.00
TOTAL 1.00 1.00 2.00 2.00

CITY CLERK'S OFFICE
FY 2025-2026 Budget
DB-16
103
CITY CLERK’S OFFICE
FY 2025-2026 Budget
The City Clerk’s Office functions as a sole position in Office with administrative support from the City Manager’s Office.

The Clerk is responsible for facilitating the conduct of business by the City Council and fulfilling legal requirements as set forth in the City Code, federal and State laws. The City Clerk’s Office administers City elections and campaign and financial disclosure laws. The City Clerk’s Office maintains a record of all proceedings of the City Council; meets all requirements regarding public postings, legal advertising, recordation, and mailing of public hearing notices. The Office also processes appeals and administers the selection process for Council appointment of members to City board, commissions, and committees.

The City Clerk’s Office provides administrative and travel assistance to Council, maintains the City Code, is the custodian of the City Seal, administers oaths or affirmations, and maintains the official record of City contracts and agreements. The Office also performs critical media outreach and information functions to improve communication of City information and engage the community through modern media platforms.

SIGNIFICANT CHANGES
FY 2024-2025 to FY 2025-2026 Budget:

The decrease of $10,798 (-1.8%) from the FY 2024-25 Adopted Budget to the FY 2025-26 Proposed Budget is primarily due to the removal of County Services and advertising notices by $125,000. These decreases are partially offset by the increase of Conduct Council Term Limit Policy Research by $7,000, Implementing Sister City and Cultural Exchange Initiative by $70,610, and an increase in the City Website Update for $45,000.

Fiscal Year (FY) Budget $ Change From
Previous
% Change From
Previous
2024-25 Adopted $592,026
2025-26 Proposed $581,228 ($10,798) -1.8%

MISSION STATEMENT
The City Clerk’s Office is committed to providing our residents of East Palo Alto with accurate and transparent official City records and documents, dedicated to supporting the City Council and other City Departments with outstanding support, and dedicated to working with the State of California and the Federal Government to ensure compliance with applicable laws and regulations.

DB-17
104
CITY CLERK’S OFFICE
FY 2025-2026 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Continue to update Citywide records going
back to 1983.

The City Clerk’s Office is continuing its multiyear effort to digitize and organize citywide records dating back to 1983. Continued work is
necessary to complete the archive and implement
long-term records management solutions.

2. Continue to improve social media outreach
and engagement.

The City’s social media presence has expanded
significantly, with increased post frequency,
improved visual branding, and higher community
engagement. The Clerk’s Office will build on this
momentum by refining content strategies,
incorporating analytics, and exploring new
platforms and outreach methods to further reach
underserved audiences.

3. Implement communications plan. The City Clerk’s Office will initiate the Request for Proposals (RFP) process to secure professional
support for the implementation of the City’s
Communications Plan. This consultant or firm
will assist in developing templates, outreach
strategies, and internal workflows to ensure
messaging is consistent, accessible, and aligned
with the City’s strategic goals.

4. Implement a Boards and Commissions
engagement plan.

The Clerk’s Office has strengthened support for
Boards and Commissions by streamlining
recruitment materials, improving orientation
processes, and increasing public visibility of
available positions. Moving forward, the Office
will continue implementing the engagement
strategy, which includes targeted outreach to
underrepresented groups, clearer appointment
timelines, and improved communication with
commissioners to ensure ongoing support and
retention.

DB-18
105
CITY CLERK’S OFFICE
FY 2025-2026 Budget

OBJECTIVES

1. Implement Sister City and Cultural Exchange initiative.

2. Upgrade and launch new City website.

3. Continue to improve social media outreach and engagement.

4. Implement communications plan.

5. Implement a Boards and Commissions engagement plan.

DB-19
106
CITY CLERK’S OFFICE
FY 2025-2026 Budget
Total FTE’s: 2.0

CITY MANAGER
City Clerk –
Public Information
Officer
Office Assistant
DB-20
107
CITY MANAGER’S OFFICE
FY 2025-2026 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2025-26
Operating $9,341,414
Positions 14.7
DB-21
108
SOURCES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Actual Actual Adopted Proposed
General Fund
Charges/Fees for Services - - 3,500 -
Use of Resources 1,405,816 2,293,256 4,541,391 6,391,414 Special Revenue Funds 33,871 - 1,095,000 2,950,000
Capital Project Funds 81,861 3,284 - -
Enterprise Funds 81,860 51,516 - -
Succesor Agency Trust Fund - - - -
TOTAL 1,603,408 2,348,056 5,639,891 9,341,414
EXPENDITURES BY DEPARTMENT FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
City Manager's Office1 1,037,966 1,418,306 2,345,936 3,282,587 Human Resources Division 565,442 929,750 1,057,825 1,351,914 Community Programs2 - - 1,689,241 3,941,000
Senior Programs2 - - 546,889 765,913
TOTAL 1,603,408 2,348,056 5,639,891 9,341,414
CHARACTER OF EXPENDITURES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Personnel
Salaries and Benefits 1,418,097 1,657,183 2,234,523 3,346,064 Subtotal 1,418,097 1,657,183 2,234,523 3,346,064
Supplies and Services
Purchased Services 511,183 639,405 1,141,488 4,599,050
Supplies and Materials 27,999 40,168 21,750 51,300
Capital Expenditures - 10,000 6,000 590,000
Other Expenditures - 11,300 - 605,000
Subtotal 539,182 700,873 1,169,238 5,845,350
TOTAL 1,957,279 2,358,056 3,403,761 9,191,414
AUTHORIZED STRENGTH FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
City Manager's Office1 4.00 4.00 6.00 7.00
Human Resources Division 2.00 2.00 2.00 2.00
Community Services Division2 0.00 0.00 5.70 5.70
TOTAL 6.00 6.00 13.70 14.70

CITY MANAGER'S OFFICE
FY 2025-2026 Budget
Department Summary
1 The FY25 Midyear budget session, effective March 18, 2025, approved an amendment to the City's Classification Plan adding 1.0 FTE Information Technology Specialist I/II. 2 Community Services Division transferred to City Manager's Office from Administrative Services effective FY 2024-25.

DB-22
109
CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Department Summary
The City Council appoints the City Manager to lead the municipal corporation. The City Manager's main role is to ensure effective and efficient management of all City programs, projects and services. The City Manager's Office (CMO) is comprised of the Administration, Community Services, Human Resources and Information Technology Divisions. The CMO fosters collaboration within the municipal organization as well externally with State, County, and local stakeholders.

The CMO oversees the City Council Strategic Priorities across all City departments. This team helps the City Council by suggesting and enforcing administrative, fiscal, and operational policies and by ensuring that the information provided for City Council decisions is thorough and reliable.

The Department is comprised of a total 14.7 FTE staff members.

Admin 5 FTEs
• 1 City Manager
• 1 Assistant City Manager
• 2 Assistants to the City Manager
• 1 Executive Assistant to City Manager
Community Services (5.7 FTEs)
• 1 Community Services Manager
• 1 Recreational Coordinator
• 1.45 Recreational Leader (1FTE and 1PT, subject to Council approval) • 1 Van Driver (2 PT)
• 0.75 Nutrition Site Supervisor
• 0.5 Kitchen Aide
Human Resources (2 FTEs)
• 1 HR Manager
• 1 HR Technician
Information Technology (2 FTEs)
• 1 IT Manager
• 1 Information Technology Specialist I-II

MISSION STATEMENT
The City Manager is responsible for ensuring the efficient delivery of municipal services and is accountable to the City Council for the performance of the City organization. The City Manager also develops recommendations and strategies to meet the current and future needs of the East Palo Alto community and to implement the Strategic Priorities of the City Council. Along with the City professional staff, the City Manager provides technical and administrative support and advice to the City Council in the performance of its duties.

DB-23
110
Total FTE’s: 14.7
CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Information
Technology (2)

CITY MANAGER
Melvin E. Gaines
Human
Resources (2)
Community
Services (5.7)
City Manager’s
Office (5)
DB-24
111
SOURCES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Actual Actual Adopted Proposed
General Fund
Charges/Fees for Services - - - -
Use of Resources 874,245 1,363,506 2,345,936 3,282,587
Special Revenue Funds - - - -
Capital Project Funds 81,861 3,284 - -
Enterprise Funds 81,860 51,516 - -
Succesor Agency Trust Fund - - - -
TOTAL 1,037,966 1,418,306 2,345,936 3,282,587
EXPENDITURES BY DIVISION FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
City Manager's Office 1,037,966 1,418,306 2,345,936 3,282,587 TOTAL 1,037,966 1,418,306 2,345,936 3,282,587
CHARACTER OF EXPENDITURES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Personnel
Salaries and Benefits 849,605 1,101,046 1,601,148 1,957,187 Subtotal 849,605 1,101,046 1,601,148 1,957,187
Supplies and Services
Purchased Services 165,966 300,066 733,788 1,317,400
Supplies and Materials 22,394 7,194 5,000 8,000
Capital Expenditures - 10,000 6,000 -
Other Expenditures - - - -
Subtotal 188,360 317,260 744,788 1,325,400
TOTAL 1,037,965 1,418,306 2,345,936 3,282,587
AUTHORIZED STRENGTH FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
City Manager/General Manager 1.00 1.00 1.00 1.00
Assistant City Manager/Assistant General Manager 1.00 1.00 1.00 1.00 Assistant to the City Manager - - 2.00 2.00
Senior Management Analyst 1.00 1.00 - -
Information Technology (IT) Manager - - 1.00 1.00
Information Technology (IT) Specialist I/II1 - - 0.00 1.00 Executive Assistant to City Manager 1.00 1.00 1.00 1.00 TOTAL 4.00 4.00 6.00 7.00

CITY MANAGER'S OFFICE
FY 2025-2026 Budget
Division Summary
1 The FY25 Midyear budget session, effective March 18, 2025, approved an amendment to the City's Classification Plan adding

1.0 FTE Information Technology Specialist I/II.

DB-25
112
CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Department Summary
The City Manager’s Office is organized into the following programmatic functions: Administration and Policy Oversight, Cross-departmental Project Coordination, Human Resources, Information Technology, and Community Services. The Office directly oversees Human Resources, Information Technology, and Community Services. Significant functional oversight includes:

1. City personnel, budget, and major cross-departmental programs, projects and initiatives.

2. Planning and implementation of Council Strategic priorities and goals.

3. Collaborating with stakeholders regarding City functions; and

4. Making recommendations to Council on a variety of issues and initiatives.

SIGNIFICANT CHANGES
FY 2024-2025 to FY 2025-2026 Budget:

The increase of $936,651 (+39.9%) from the FY 2024-25 Adopted Budget to the FY 2025-26 Proposed Budget is primarily due to increases in salaries and benefits by $356,039, implementation of the “PopUp” Sidewalk Vending Policy and Program with $572,952, and an increase in trainings for $7,660.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2024-25 Adopted $2,345,936
2025-26 Proposed $3,282,587 $936,651 39.9%

SERVICE DESCRIPTION
The City Manager’s Office serves as the Chief Executive Officer and manages programs and policies, ensuring effective execution to support the City’s mission. The Office collaborates with federal, State, and local stakeholders and directs and oversees implementation of Council strategic planning and priorities. The City Manager’s Office performs oversight of the organization to provide professional delivery of quality public services, efficient government, community health and safety, fiscal stability, organizational effectiveness and development, economic vitality, quality of life, and resident involvement.

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CITY MANAGER’S OFFICE
FY 2025-2026 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Develop an economic development strategy In October 2024, staff issued a request for proposals to hire a consultant for the City’s
Economic Development Strategic Plan. After a
thorough selection process, HR&A Advisors was
chosen to lead the project. Work began on
February 18, 2025, with a virtual kickoff, and
completion is expected by December 2025. Key
project components include data analysis, market
engagement, opportunity identification, strategy
development, and community engagement.

2. Conduct a process to develop a four-year
strategic plan
By the end of FY25, the City will have completed
the development of the FY2025-29 Strategic
Priorities along with the FY2025-27 Work Plan.

This process, which has included Council
direction, community input, and staff
coordination, will result in a formally adopted
plan in June 2025. Together, these deliverables
will help set clear direction on major policy areas
over the next four years and guide the City’s
budgeting and implementation efforts. This effort
represents both an actionable short-term roadmap
and an initial step toward longer-range strategic
planning in accordance with the City’s Vision
2035.

3. Finalize the update to the City's Emergency
Operation Plan (EOP)
Staff conducted information gathering to
understand City’s past and current efforts related
to emergency preparedness, learned best practices
from neighboring jurisdictions, and attended
multi-jurisdictional tabletop exercises to network
and engage with others doing similar work. At its
March 25, 2025, study session, the City Council
requested staff to complete an update to the City’s
EOP during Fiscal Year (FY) 2025-26. Other
initiatives requested included developing a Crisis
Communications plan, identifying emergency
shelters, and increasing community preparedness
and awareness.

4. Complete the Nexus Study and Feasibility
Analysis
On March 4, 2025, the City Council adopted the
Nexus Study Update and accepted the
Development Impact Fee Financial Feasibility
Analysis and Development Impact Fee
Comparison Survey.

5. Plan for water system operations in 2026 Staff continue to explore various options for water system operations in 2026 including extending the
agreement with Veolia.

6. Oversee transition of EPASD to City
governance
The City began governance of EPASD on October
1, 2024. The City Council appointed the City
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CITY MANAGER’S OFFICE
FY 2025-2026 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS
Manager as District Manager, City Attorney as
District Counsel, Public Works Director as
District Engineer, and City Clerk as Secretary.

The City assigned the Utility Manager to oversee
day-to-day operations of EPASD, which are
primarily performed by West Bay Sanitary
District, and are recruiting an Office Assistant,
Senior Accountant and IT Tech. Operations
continue to evolve.

7. Develop water infrastructure financing plan The City is working on a water infrastructure fundraising plan with expected completion in the
first quarter of FY 2025-26.

8. Fundraise for library construction The City continues to work with the San Mateo County Library Foundation to implement a
fundraising strategy.

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CITY MANAGER’S OFFICE
FY 2025-2026 Budget

OBJECTIVES

1. Prepare the City for disasters and emergencies by developing a comprehensive plan and detailed implementation strategies that includes preparing, educating, exercising, and recovery measures.

2. Adopt an economic development strategic plan with various implementable projects to achieve potential short-term goals and maintain economic sustainability.

3. Prepare an infrastructure bond for 2026.

4. Plan for the development of a Community Hub, which will include a new library, Police department, administrative offices, and park.

5. Initiate a five-year performance audit of all departments and divisions to identify ways to improve system and process efficiencies.

6. Implement Shopping Cart Abatement Program.

7. Implement a pop-up/sidewalk vending policy and program.

8. Distribute the Community Resource Grant funds for senior home repair assistance, small business assistance, senior programs and youth civic engagement activities.

9. Work with the San Mateo County Libraries to identify and implement a comprehensive funding strategy for library construction.

10. Finalize acquisition of County-owned Beech Street property.

11. Study the creation of Parks and Recreation department.

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Division Summary
SOURCES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Actual Actual Adopted Proposed
General Fund
Charges/Fees for Services - - - -
Use of Resources 531,571 929,750 1,057,825 1,351,914
Special Revenue Funds 33,871 - - -
Capital Project Funds - - - -
Enterprise Funds - - - -
Succesor Agency Trust Fund - - - -
TOTAL 565,442 929,750 1,057,825 1,351,914
EXPENDITURES BY DIVISION FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Human Resources Division 565,442 929,750 1,057,825 1,351,914 TOTAL 565,442 929,750 1,057,825 1,351,914
CHARACTER OF EXPENDITURES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Personnel
Salaries and Benefits 402,204 556,137 633,375 764,114
Subtotal 402,204 556,137 633,375 764,114
Supplies and Services
Purchased Services 157,946 339,339 407,700 423,000
Supplies and Materials 4,392 32,974 16,750 14,800
Capital Expenditures - - - -
Other Expenditures 900 1,300 - -
Subtotal 163,238 373,613 424,450 437,800
TOTAL 565,442 929,750 1,057,825 1,201,914
AUTHORIZED STRENGTH FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Human Resources Manager 1.00 1.00 1.00 1.00
Human Resources Assistant 1.00 1.00 1.00 1.00
TOTAL 2.00 2.00 2.00 2.00
FY 2025-2026 Budget
Human Resources Division

CITY MANAGER'S OFFICE
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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Human Resources Division Summary
The Human Resources (HR) Division currently is within the City Manager’s Office with two permanent positions: Human Resources Manager and Human Resources Technician II. This fiscal year two limited term duration positions were authorized: Human Resources Technician I and a Management Analyst I.

Core functions of the HR Division include:
• Recruiting, attracting new staff, and filling vacant positions with talented and well-qualified candidates;
• Providing labor negotiations to three bargaining units; meet and confer with labor representatives to cultivate and foster a positive working environment and build collaboration among all divisions; • Serving as a liaison between departments, employees and leadership, ensuring clear and consistent communication of policies and initiatives;
• Providing disability and leave management, employee advocacy and engagement by administering job-protected leaves (FMLA, CFRA, ADA, etc.), and support reasonable accommodations process; • Promoting a respectful and inclusive workplace by providing confidential support, to employees and facilitating issue resolution.
• Reviewing and interpreting policies and procedures to provide guidance for Directors/Managers/ Supervisors to resolve issues;
• Maintaining the respective functions of the Enterprise Resource Planning (ERP) software to ensure that the HR processes are setup correctly;
• Managing and maintaining the City’s Human Resources Information System (HRIS). • Maintaining and developing the employee wellness policies and programs; • Managing and providing support and guidance to management when dealing with personnel issues, employee performance evaluations, salary step increases, grievances, exit interviews for resignations, and retirement;
• Conducting new hire orientation on quarterly basis;
• Developing and ensuring professional staff development and training opportunities; • Managing and conducting benefit meetings to provide employees with information regarding medical, dental, life insurance, retirement, and other benefits; • Developing and implementing a workers’ compensation management program;

SERVICE DESCRIPTION
Human Resources provides guidance and support to City departments, employees, officials, candidates, and the public in the areas of benefit administration, classification and compensation, labor and employee relations, recruitment and selection, organizational development and training, workers’ compensation administration, risk management, and compliance.

Our objective is to attract the most diverse, competent, professional, and talented workforce as well as retain a talented and well-qualified workforce and help foster a positive working environment for employees.

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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Human Resources Division Summary
The HR Division is increasingly requiring additional staff assistance due to the shift of responsibility and high-volume work projects and compliance tasks. The Division has been impacted by numerous compliance issues, personnel responses, HR informational system management, new initiatives for local emergency response, and other tasks.

The Division’s budget includes additional temporary funding to backfill staff services and additional outside professional services to address work impacts related to new workload expectations; however, longterm the current staff level and current workload may not be sustainable.

HR’s emphasis for the Fiscal Year 2025-2026 is to continue working to achieve the City of East Palo Alto’s strategic mission while ensuring City employees are engaged and motivated to help East Palo Alto residents, businesses, organizations, and visitors. This will be accomplished by identifying issues and executing corrective measures effectively.

The Human Resources team has targeted its operation initiatives to align to the City Council’s Strategic Plan by initially identifying ways to continue to retain and develop training programs for our great staff. The HR Division’s goal is to be a proactive results-oriented business partner providing support to all levels of the City. We aim to hire the best people, while offering development and training to our existing staff.

The focus this year is to proactively support organizational resilience and employee engagement through strategic initiatives this year focused on workforce well-being, legal compliance, and market competitiveness through the following projects:
• Ergonomic Refresh: Will promote employee health, reduce workplace injuries, and support hybrid work adaptability through conducting ergonomic assessments and implement modern, adjustable workstation setups citywide. This effort supports ADA compliance, improves productivity, and reduces workers’ compensation claims and absenteeism.
• Classification Specification Update: Will ensure our job classifications reflect current duties, industry best practices, and compliance with evolving employment laws (e.g., SB 1100 and 1162).

This update will require collaboration with staff, departments, and labor groups to review and update outdated specifications, aligning them with functional roles and future City needs. The completion of this project ensures internal equity, succession planning, and defensibility in recruitment and promotional processes.
• Compensation Refresh: Supports maintaining a competitive compensation structure to attract and retain top-tier talent in a competitive labor market while balancing the fiscal health of the City.

Updating the existing compensation study using current benchmark data, incorporating equity adjustments and strategic pay positioning. This effort supports fiscal planning, reduces turnover, and strengthens employer branding.

Human Resources will continue to network with other local public agencies within the County of San Mateo and around California, attending webinars and conferences in efforts to stay informed of federal, State and local developments and changes in laws that may affect our City.

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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Human Resources Division Summary

SIGNIFICANT CHANGES
FY 2024-2025 to FY 2025-2026 Budget:

The increase of $294,089 (+27.8%) from the FY 2024-25 Adopted Budget to the FY 2025-26 Proposed Budget is primarily due to an increase in personnel services of $130,739 and increase in professional and technical services for EEOC potential claims, classification study, and recruitment marketing.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2024-25 Adopted $1,057,825
2025-26 Proposed $1,351,914 $294,089 27.8%
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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Human Resources Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Continue to recruit new staff and improve
recruitment marketing for vacant positions as
needed.

Staff interviewed approximately 139 applicants to
recruit and retain the most talented and qualified
staff for vacant positions. The City is almost at
full capacity for the first time in several years due
to these efforts.

2. Maintain and continue to improve the leave
administration program.

Successfully established the program and now
transitioning to maintain it.

3. Continue to provide leadership and
implementation of all types of training to all
levels of the workforce.

This is the second year of the annual training and
coaching program. This fiscal year was a success
due to staff establishing a regular cadence with a
training calendar.

4. Develop and implement a workers’
compensation management program.

Staff successfully launched a workers’
compensation management program, which
significantly improved how we support employees
during their return-to-work process. We now
coordinate medical referrals more efficiently,
ensure providers respond promptly, and help
employees understand and access their benefits.

Our structured approach allows us to
communicate clearly with staff and supervisors,
streamline accommodations, and provide timely
assistance. As a result, employees receive the
consistent support they need and deserve
throughout their recovery.

5. Review and update Personnel Policies and
Procedures manual and meet and confer with
employee bargaining units prior to City
Council final approval.

This objective was postponed, redirecting our
focus to updating key administrative policies. We
plan to begin the Personnel Policies and
Procedures review in the upcoming fiscal year.

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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Human Resources Division

OBJECTIVES

1. Continue to improve marketing strategy to recruit and retain qualified staff.

2. Update the classification specifications.

3. Update the compensation study.

4. Conduct an ergonomic citywide refresh.

5. Update the City’s personnel policies and procedures.

6. Increase labor management check-in meetings.

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SOURCES FY 2022-231 FY 2023-241 FY 2024-25 FY 2025-26
Actual Actual Adopted Proposed
General Fund
Charges/Fees for Services - - 3,500 -
Use of Resources - - 1,137,630 1,756,913
Special Revenue Funds - - 1,095,000 2,950,000
Capital Project Fund - - - -
Enterprise Funds - - - -
Succesor Agency Trust Fund - - - -
TOTAL - - 2,236,130 4,706,913
EXPENDITURES BY DIVISION FY 2022-231 FY 2023-241 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Community Programs - - 1,689,241 3,941,000
Senior Programs - - 546,889 765,913
TOTAL - - 2,236,130 4,706,913
CHARACTER OF EXPENDITURES FY 2022-231 FY 2023-241 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Personnel
Salaries and Benefits - - 536,330 624,763
Subtotal - - 536,330 624,763
Supplies and Services
Purchased Services - - 577,800 2,858,650
Supplies and Materials - - 27,000 28,500
Capital Expenditures - - 570,000 590,000
Other Expenditures - - 525,000 605,000
Subtotal - - 1,699,800 4,082,150
TOTAL - - 2,236,130 4,706,913
AUTHORIZED STRENGTH FY 2022-231 FY 2023-241 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Community Services Manager - - 1.00 1.00
Recreation Coordinator - - 1.00 1.00
Recreation Leader II (1 FTE, 1 PT)2 - - 1.45 1.45
Van Drivers (2-PT) - - 1.00 1.00
Nutrition Site Supervisor (PT) - - 0.75 0.75
Kitchen Aide (PT) - - 0.50 0.50
TOTAL - - 5.70 5.70
1 Division transferred to City Manager's Office from Administrative Services effective FY 2024-25.

CITY MANAGER'S OFFICE
FY 2025-2026 Budget
Community Services & Recreation Division
Division Summary
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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Community Services Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Cultural Arts, Events and Entertainment:
• Continue activation of parks through
Summer Park Activation series and
Family Day events
• Evaluate and update the process of
support for City-Sponsored events
(Cinco de Mayo, Juneteenth,
Children’s Day), cultural services,
special events, and educational
opportunities for the community.
• Partner with local artists and arts
organizations to amplify events and
creative opportunities for residents.
• Complete implementation of Utility
Box arts project in collaboration with
EPACenter for the Arts.

The sixth year of the Summer Parks Activation
program saw its participation rates grow to the
largest number ever.
2019-20: 382 participants
2020-21: 108 participants
2021-22: 320 participants
2022-23: 815 participants
2023-24: 920 participants
2024-25: 1821 participants (may include
duplicates)
Staff engaged with local partners along with
internal conversations to understand the full cost
of hosting large-scale City events and determined
that the delivery of services has risen since the
2017 decision to increase co-sponsorship to
$5,000 from $1,500. Staff requested an increase
during the FY2025-26 budget cycle. The
evaluation of the City-sponsored events showed
that the co-sponsorship funding is minimal
compared to the overall budgets for these events.

Staff are proposing an increase in this year’s
budget to account for inflation and more support.

We completed Phase One of the Utility Box Art
Project in partnership with EPACENTER and
look to do more in the future.

2. Lifelong Learning:
• Provide ongoing opportunities for the
community to learn new skills,
explore opportunities, and pursue
knowledge for personal and/or
professional development.
• Enhance Literacy and STEM access
and services through successful
collaborations and grants.

We utilized funding from the Community
Resource Funding to offer technology training
programs for seniors through multiple methods
and worked with Menlo Park Fire District to
extend Emergency Preparedness Training
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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Community Services Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

3. Community Outreach and Engagement:
• Promote programs, events, and
services through intentional and
strategic communications and
marketing, and provide opportunities
for residents to engage and volunteer
in City-offered programs.
• Increase Library/City community
engagement and collaboration to
exceed over 3000 residents with more
Digital Literacy classes, Farmers’
Markets, and school visits.
• Host community Resource Fair and/or
Flea Market at City Room at the Y or
Bell Street Park.
• Increase social media posts and events
to promote Community Services and
Recreation programs and special
events.

Finding new ways to collaborate with all City
events that are generally hosted on the same day
allowed us to reach more participants and
provided them with a greater experience rather
than going from one event to another. Combining
our Holiday Tree Lighting with the Police
Holiday Toy Drive. We offered over 1000 toys
and bikes to children ages 4-18 and gave away the
majority of these items
The City is seeking to partner with the Library
more on programming that works together.

Community Services Division partnered with the
City’s Communications Team to identify a social
media strategy and timeline with best practices to
expand the reach of viewers and potential
participants.

4. Recreation:
• Implement seventh year of summer
recreation programs and services.
• Complete the master plan for Martin
Luther King, Junior Park
• Increase the amount of youth
participating in recreation programs
that promote healthy habits, by 15%
and provide additional programming
for Senior programs.
• Increase emotional and social support
for seniors by implementing
intergenerational programs between
youth and senior populations.
• Increase recreation space through
partnerships and field rentals.

The master plan for Martin Luther King, Jr. Park
is near completion as we await components to
finalize CEQA and return to Council.

We drastically increased the number of
participants in Summer Parks Activation from 815
to almost 2000 participants
The partnership with EPACenter allowed us to
grow the type of programming we offer and
opened up a new space to the community that has
increased collaborations. Along with that, we also
hosted a Senior Prom that served residents from
30-90+.

Through partnerships with EPACENTER and the
YMCA, we hosted dance programs and youth
sports at various sites that have amenities that the
City does not currently have in its inventory.

5. Senior Services:
• Evaluate how to reach our seniors
more effectively in the community
through database and/or canvassing.
• Increase senior programs and services.
• Mobilize Senior Advisory Committee
to assist seniors with their needs and
The Senior Advisory Committee made this one of
their priorities for the FY25-26 and sought to
evaluate how they reach more seniors in a time of
need.

The City added programming and trainings
through grant funds that we received and also
completed the Age Friendly Action Plan to guide
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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Community Services Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS
any other assistance they might
require.
us in the future. Staff served more than 3,200
seniors to date through the Congregate Nutrition
Program.

6. Youth Leadership Development:
• Provide opportunities for youth ages
12 through 25 to develop leadership
life skills, job preparation, and college
readiness through interactive
programming.
• Launch Youth Commission with
initial objectives identified through
Youth Summit and Consultation.

The City issued a request for proposals and
contracted with three consultants to help identify
the best path forward for establishing a Youth
Commission. Staff will return to Council by the
end of 2025 with a plan for initiating this new
Commission as well as possible alternatives.

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Leverage additional funds for housing from
State and Federal sources for affordable
housing.

The current CalHome loan program is coming to
an end in June 2025. The Housing team partnered
with EPACANDO once more to apply for the
CalHome Loan program in 2025.

2. Pursue state and regional funds to support
affordable housing projects and programs and
to address homelessness in the City.

The City was not awarded for the ERF-2 grant in
2024, however, staff meets on a monthly basis
with County and social service partners to
coordinate the response to homelessness.

3. Implement Measure L and which is now called
Measure JJ - the City’s existing Gross
Receipts Tax on rental residential properties
for affordable housing and support programs.

This is an ongoing activity. The Housing and RSP
team brought an update to City Council on April
1, 2025 and later in Spring 2025, City Council
will consider further proposals to implement what
is now Measure JJ.

4. Collaborate with affordable housing
developers to ensure widespread marketing
and outreach when units are open to
applications.

This is an ongoing activity. In the beginning of
2025, staff collaborated with MidPen for the
marketing and outreach of Colibri Commons
lease-up.

5. Implement annual updates to the Inclusionary
Housing Ordinance, including the Inclusionary
Guidelines and in-lieu fees, in addition to any
necessary amendments to adapt the ordinance
to small projects and projects with Accessory
Dwelling Units (ADUs).

City Council adopted new in-lieu fees for FY
2024-25 on July 16, 2024, and staff updated the
Inclusionary Housing webpage and Chapters 2A
and 2B of the Inclusionary Guidelines for
calculation of ownership and rental in-lieu fees.

6. In coordination with the Planning Division,
complete the City’s Housing Element and
General Plan Annual Progress Report. At least
every two years, evaluate the progress on
meeting the City’s RHNA and adjust the Sites
Inventory as needed.

The Housing Element was adopted by City
Council on March 19, 2024. As of April 29, 2024,
the City of East Palo Alto’s Housing Element was
considered substantially compliant with State
Housing Element Law (Gov. Code, § 65580 et
seq).

7. Identify funding sources for all affordable
housing activities; identifying opportunities
for housing preservation; and capacitybuilding for affordable housing preservation in East Palo Alto.

The City identified local funding for affordable
housing activities in its 2024-2028 Affordable
Housing Strategy. The City applied for and was
awarded $100,000 from the County of San
Mateo’s Equity Innovation Fund (EIF) for the
development of affordable housing preservation
guidelines and NOFA. The City also applied for
and was awarded the Partnership for the Bay’s
Future (PBF) Policy Grant and is receiving
capacity-building for affordable housing
preservation through the allocation of PBF Fellow
Jaz Gonzalez. In addition, on May 6, 2025, the
City Council will be considering the reallocation
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS
of $2,050,000 in Housing In Lieu Funds from the
Palo Mobile Estates Loan Program to an
Affordable Housing Preservation Program.

8. Work with other City agencies to ensure that
tenants are provided with proper notices and
relocation benefits when granted under the
Municipal Code.

This is an ongoing activity of the Rent
Stabilization Program (RSP). The RSP works with
both internal departments to ensure
landlords/owners are compliant and community
partners to disseminate information and resources.

The RSP has provided oversight over the Euclid
Improvement Relocation Plan.

9. Implement anti-displacement services, fair
housing and anti-eviction program using
Measure O and other qualifying local revenue
sources. Administer funding and monitor
delivery of services and completion of
deliverables specified in agreements.

Measure O anti-displacement contracts will
complete as of 3/31/2025. The Housing and RSP
team brought an update to City Council on April
1, 2025. Measure O funding was utilized for antidisplacement services such as eviction defense, rental assistance, case management and know
your rights workshops. Later in Spring 2025, City
Council will consider further proposals to
implement what is now Measure JJ.

10. Work with the Rent Stabilization Board, in
collaboration with the Building Services
Division, to ensure that rental units meet the
building, housing and safety code standards,
so the rent stabilization ordinance’s
habitability goals can be accomplished.

This is an ongoing activity of the Rent
Stabilization Program. Staff has worked with
Building to notify the owner(s) when a unit's
habitability is in question. The city would only be
informed if the tenant complains or submits a
petition, or if a code enforcement complaint is
filed by the tenant or someone from the public.

11. Assist the City Attorney’s Office and contract
legal counsel to draft any needed regulations
and amendments to the Rent Stabilization
ordinances. Gain approval of amendments
from the Board. update forms, notices, and
informative materials to reflect any revisions
adopted.

This is an ongoing activity of the Rent
Stabilization Program. At this time there are no
needed regulations or amendments to the Rent
Stabilization ordinances. RSP staff will continue
to provide trainings and coordinate with the Rent
Stabilization Board to keep them informed.

12. Implement a Citywide Rent Registry and make
any necessary programming adjustments to the
Rent Stabilization Program’s registration
database and petition tracking system to be
incorporated in the same system.

This is still in process. Rent Stabilization staff are
working closely with Tolemi and necessary
internal staff to work towards completion and
implementation. Goal date is to fully launch the
Rent Registry by January 1, 2026.

13. Conduct community outreach to educate both
landlords and tenants of their rights and
responsibilities under the City’s ordinances,
including distributing an informative Guide to
Rent Control in East Palo Alto.

Rent Stabilization staff worked with Measure O
partners to disseminate know your rights
knowledge and resources. Staff also provided
tenants and landlords with resources, their rights
and responsibilities under the Rent Stabilization
Ordinance.

14. Provide information on the requirements for
eviction in the ordinances to landlords and
Staff provided referrals for rental assistance, and
reviewed notices for compliance with the Just
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS
tenants, including mailing information to
tenants within one business day of receipt of
notices of eviction.

Cause for Eviction Ordinance. Educated with
landlords when notices were noncompliant and
provided tenants with resources and their rights
under the Rent Stabilization Ordinance.

15. Under the 2010 Ordinance, issue Certificates
of Maximum Allowable Rent for new tenants
within five business days of the Board’s
receipt of a completed Vacancy Registration
Statement to comply with the Ordinance and
regulations.

This is an ongoing activity of the Rent
Stabilization Program. Staff have worked with
landlords to educate requirements under the
ordinance. Staff have worked to bring landlords
back into compliance when tenant registrations
have not been submitted.

16. Mail Annual Program Fee Statements forms to
landlords of regulated rental units under the
2010 Ordinance (regulated residential
dwelling units) in November, so landlords can
timely submit them and meet the deadlines
established by the ordinances.

Staff sent out the 2024-2025 Annual Program Fee
Statement forms in November 2024. Notices were
mailed to regulated residential dwelling units.

17. Process pending petitions submitted by
landlords and tenants within the timelines
established in the Rent Stabilization Ordinance
and regulations.

This is an ongoing activity of the Rent
Stabilization Program. 30 petitions were
submitted by residents living in Woodland Park
under Sandhill Properties. RSP staff are reviewing
those petitions and hearings have begun but are
not yet resolved.

18. Submit notices of noncompliance to landlords
when regulated rental units are not properly
registered as required by the ordinances and
regulations with information about how to
comply, the penalty fees that are accruing for
noncompliance, and the procedure for
submittal of a penalty waiver request for good
cause.

This is an ongoing activity of the Rent
Stabilization Program. Staff track regulated rental
units; noncompliance notices are sent out and
penalty fees are accrued for noncompliance and
penalty waivers are processed for good cause.

19. Develop underwriting guidelines for use in the
Inclusionary Housing Ordinance and
Commercial Linkage Fee Programs.

The City is working with a regional collaborative,
21 Elements, for the Grand Nexus Study to review
its inclusionary housing in-lieu fees and
commercial linkage fee programs. Upon
completion of the study, staff will be able to
provide recommendations to update the
underwriting guidelines.

20. Coordinate with the County and social service
partners to reduce homelessness in East Palo
Alto.

This is an ongoing activity. Staff continue to
coordinate monthly check-in meetings with the
County of San Mateo, Life Moves, and Project
WeHope.

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

21. Implement a comprehensive, crossdepartmental strategy for unhoused residents in East Palo Alto that addresses both RVs in
the public right of way and residents
experiencing homelessness, including but not
limited to implementation of Master
Temporary Use Permit Program, and
employment and services opportunities for
people experiencing homelessness
Staff implemented a cross-departmental strategy
that addresses RVs in the public right of way. Any
RV not working with a service provider in the
public right of way, that presents a health or safety
hazard, receives a red tag notice from Public
Works and gets towed if no action is taken after
the notice, with assistance from the Police
Department staff. Public Works staff coordinate
noticing and encampment clean-up, and work
with service providers to ensure people
experiencing homelessness are receiving the
services they need. Housing staff track reportbacks and work to identify funding opportunities to support programs for people experiencing
homelessness. City Council adopted a Master
Temporary Use Permit program to work with
private property owners in providing temporary
shelters, and staff continues to seek opportunities
for partnerships.

22. Continue to support the low barrier navigation
center and emergency shelter operated by
WeHope, and explore opportunities to
accommodation of at-risk youths, households
with children, and persons with disabilities.

This is an ongoing activity.

23. Encourage smaller-scale housing that is
relatively more affordable, including accessory
dwelling units (ADUs). Collaborate with 21
Elements and ADU Working Group, and with
Planning and Building to develop and
implement a “next phase” strategy for
promotion of ADUs, SB 9 units, and any
future small development. This includes
development code amendments and
consideration of free waivers or reductions,
financial incentives and previously approved
and modular ADU design plans.

Coordinated with the Building Division and
joined the San Mateo County ADU Resource
Center, which will provide access to additional
resources and guides to support ADU
development and compliance with state building
codes.

24. Provide update to City Council on progress
made on the City’s 2024-2028 Affordable
Housing Strategy.

The 2024 Housing Element Annual Progress
Report (APR)was provided and approved by City
Council on March 18, 2025. The Housing
Element APR is aligned with the 2024-2028
Affordable Housing Strategy. Staff will continue
to return to City Council with updates on specific
Affordable Housing Strategy projects.

25. Continue to engage in strategic housing
advocacy, including comment letters to the
This is an ongoing activity.

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS
relevant state and/or federal agencies
regarding key housing grant programs.

26. Create homeownership opportunities for East
Palo Alto residents and stability for existing
homeowners. Research and report to City
Council on barriers to homebuying for
households in East Palo Alto and effectiveness
of federal, state, and local programs, with
recommendation of either a City led program
or partnership with local organization.

Determine how such a program should be
funded, and whether a Request for Proposals
(RFP) is needed.

The City of East Palo Alto applied to and was
granted a housing fellow through the Partnership
for the Bay’s Future Policy Grant. This fellowship
in coordination with community partners,
EPACANDO, YUCA, and CLSEPA will focus on
preservation including affordability among
homeownership, among other things.

27. Promote stewardship and preservation of the
City’s existing affordable housing stock. By
first quarter 2023, report on progress made
under existing Below Market Rate (BMR)
contract and seek City Council direction on
future BMR administration for the issuance of
a new Request for Proposals (RFP).

On February 20, 2024, City Council received a
report on progress made under the BMR program.

The City issued an RFP for BMR Administration
on April 11, 2024. On May 7, 2024 City Council
received an update on the progress made under the
BMR program and approved the execution of a
BMR administration contract with EPACANDO
through May 9. 2027.

28. Implement an effective and fair housing
compliant Local Preference Policy and post to
website.

The City Council approved an updated Local
Preference Policy on January 21, 2025 and a
webpage has been created:
https://www.cityofepa.org/housing/page/localpreference.

29. Execute agreements and administer Measure
HH Pilot Workforce Development Program.

Monitor success of meeting performance goals
and quantified metrics.

This pilot is in its final stages and being evaluated
by Informing Change. Staff anticipate returning to
City Council near the end of the current fiscal
year into the new fiscal year with an update.

30. Improve and maintain the Housing and Rent
Stabilization webpages as a primary means of
communicating information, and expand
proactive measures to inform homeowners,
landlords and tenants about available local and
County housing resources and supportive
services.

This is an ongoing activity. The following new
Housing webpages were created: 1) Apply for
Affordable Rental Housing; 2) Affordable
Housing Preservation; and 3) Local Preference.

31. Create a budget at the start of each fiscal year
to increase accessibility including mailers/nondigital outreach on the Housing workplan items, translation of materials and
interpretation for public meetings in alignment
with City’s Language Access Plan.

A budget was created for added mailer/non-digital
outreach. In addition, the City included a budget
for language translation and interpretation in its
Equity Innovation Fund (EIF) grant application
with the County of San Mateo.

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

32. Join with other cities in San Mateo County to
share housing staff to support longer-term
housing initiatives and programs.

The City Council approved the execution of a
contract with Housing Endowment and Regional
Trust of San Mateo County (HEART) for shared
housing staff support.

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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Community Services Division Summary
The Division is staffed with 5.70 proposed full-time equivalent positions:
• 1 Community Services Manager
• 1 Recreation Coordinator
• 1 Part-Time (0.75) Nutrition Site Supervisor
• 1 Part-Time (0.5) Kitchen Aide
• 2 Part-Time Van Drivers (1.0)
• 1 Full-Time and 1 Part-Time (0.45) Recreation Leaders The Community Services Division activities rely heavily on interdepartmental, inter-jurisdictional, and community partnerships to deliver services that enhance the quality of life for East Palo Alto residents with a focused effort on increasing community engagement. The Community Services Division provides staffing support to the Senior Advisory Committee, including efforts to fill vacancies with committed residents that represent the myriad of skill/talent, community senior interests, and cultural diversity of the community.

SIGNIFICANT CHANGES
FY 2024-2025 to FY 2025-2026 Budget:

The increase of $2,630,709 (+126.7%) from the FY 2024-25 Adopted Budget to the FY 2025-26 Proposed Budget is primarily due to an increase of $88,433 in personnel services and an increase of $2.3M in professional services for park improvements such as cameras, audio/visual improvements, lighting, and a park project manager.d
1 Division transferred to City Manager's Office from Administrative Services effective FY 2024-25.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2024-251 Adopted $2,076,204
2025-26 Proposed $4,706,913 $2,630,709 126.7%

SERVICE DESCRIPTION
Community Services is responsible for an array of services and facilities for residents and visitors to our City. Responsibilities include senior services, facility and park reservations, family and children programming, citysponsored events, sports, leisure, and urban arts programing.

The Focus is on providing efficient, responsive, and innovative communitybased services that promotes a healthy and safe neighborhood that meets the communities’ diverse cultural, recreation, and information needs.

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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Community Services Division

OBJECTIVES

1. Complete the evaluation of the Youth Commission project and launch said initiative or pivot to alternative based on information received.

2. Launch pilot Dog Park to determine feasibility for permanent space at Martin Luther King Junior Park or other site.

3. Work with Ravenswood School District to rollout Memorandum of Understanding/JUA to expand available parkland space for residents.

4. Maintain and expand senior and disabled individuals’ vulnerability and emergency contact database.

5. Conduct comprehensive evaluation of the Senior Center (as required per contract).

6. Implement quick-win projects from the Parks Master Plan.

7. Fund Community Services for YMCA, such as subsidized memberships.

8. Fund Community Services for EPACENTER to expand services and programs.

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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Information Technology Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Transition IT Service Function to the City. As IT Services are no longer outsourced to Redwood City, staff now has a singular focus
towards the support of the organization as a
whole.

2. Provide critical technical support for Council
Priority Projects which ensured timely
progress, as well as assisting on various other
ad-hoc technical requests for smaller projects
from different departments.

The Rent Registry required the support of IT in
order to extract data from several different
databases and ensure that data was valid and thus
allowed vendor to continue the development of
their application with live data.

3. Continue to improve City’s IT Infrastructure. Upgrades to outdated IT infrastructure components (e.g., servers, storage) have improved
performance, scalability, and energy efficiency.

4. Continue to Improve Network Security. Implementation of cybersecurity tools has automated the monitoring process, allowing staff
to focus on other areas of concern.

5. Provide Consistent and Reliable IT End-User
Support
By resolving user-reported issues, staff has
contributed to uninterrupted workflow across City
departments.

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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Information Technology Division

OBJECTIVES

1. Develop a Citywide Information Systems Master Plan.

2. Create inter-departmental IT working group to foster communication, share best practices, and proactively address technological needs across the City.

3. Collaborate with other departments to assist with the implementation of new applications and processes as directed by City Council priorities while providing technical expertise and ensuring seamless integration with the existing City infrastructure.

4. Continue to strengthen cybersecurity and data protection by enhancing cybersecurity posture, improving patch management compliance, strengthening data backup and recovery, and ensuring regulatory compliance.

5. Continue to explore and implement emerging technologies.

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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Information Technology Division Summary
The Information Technology (IT) Division currently is within the City Manager’s Office with two permanent positions: Information Technology Manager, and Information Technology Specialist I-II.

Core functions of the IT Division include:

1. Network Infrastructure Management:
• Wired and Wireless Network Support: Design, implementation, maintenance, and troubleshooting of the City's local area network (LAN), wide area network (WAN) and wireless network (Wi-Fi) infrastructure across all City facilities. • Internet Connectivity Management: Ensuring reliable and secure internet access for all City operations.
• Network Security: Implementing and maintaining firewalls, intrusion detection/prevention systems, virtual private network (VPNs), and other security measures to protect the City’s network and data from cyber threats.
• Network Monitoring and Performance Management: Proactive monitoring of network health and performance to identify and resolve potential issues before they impact operations.

2. Systems and Server Administration:
• Server Infrastructure Management: Installation, configuration, maintenance, and monitoring of physical and virtual servers hosting critical City applications and data. • Operating System Support: Providing support for server and desktop operating systems. • Data Backup and Recovery: Implementing and managing robust data backup and recovery solutions to ensure business continuity in the event of data loss. • Cloud Services Management: Evaluating, implementing, and managing cloud-based services as appropriate for City needs (e.g., e-mail, storage, software-as-a-service).

3. End-User Support and Help Desk Services:
• Technical Support: Providing timely and effective technical assistance to all City employees for hardware, software, and network-related issues via phone, email, remote access and in-person support.
• Desktop and Laptop/Tablet Management: Configuration, deployment, maintenance, and troubleshooting of employee workstations (desktops and laptops) and tablets. • Software Installation and Support: Installing, configuring, and providing basic support for standard City software applications.

SERVICE DESCRIPTION
The Information Technology (IT) Division serves as the central technology resource for the City, providing and maintaining the essential technology infrastructure, systems, and support necessary for all departments.

Our objective is to ensure reliable, secure, efficient technological resources that enable the employees to deliver services to the benefit of the community.

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CITY MANAGER’S OFFICE
FY 2025-2026 Budget
Information Technology Division Summary
• User Account Management: Creating, managing, and disabling user accounts and access permissions.
• IT Training and Guidance: Providing basic IT training and guidance to employees on the use of City technology resources and best practices.

4. Application Support and Management:
• Business Application Support: Providing technical support for core City applications (e.g., financial management, permitting, public safety systems). This may involve vendor coordination. • Database Administration: Managing and maintaining City databases. • Application Integration (as needed): Assisting with the integration of different software applications to improve data flow and efficiency.

5. IT Security and Compliance:
• Security Policy Enforcement: Implementing and enforcing IT security policies and procedures. • Security Awareness Training: Conducting security awareness training for employees to promote safe computing practices.
• Vulnerability Management: Identifying and addressing security vulnerabilities in City systems and applications.
• Compliance with Regulations: Ensuring IT systems and practices comply with relevant federal, State, and local regulations.

6. IT Planning and Procurement:
• Technology Needs Assessment: Collaborating with City departments to understand their technology needs and research, recommend, and implement appropriate solutions. • IT Strategic Planning: Developing and maintaining the City’s IT strategic plan, aligning technology investments with organizational goals.
• Hardware and Software Procurement: Managing the procurement process for IT hardware, software, and services, ensuring cost-effectiveness and compliance with purchasing policies. • IT Budget Management: Assisting with the development and management of the IT budget.

7. Website and Digital Presence Support:
• Website Content Management System (CMS) Support: Providing technical support for the City’s website content management system.
• Basic Website Maintenance (if applicable): Performing basic website troubleshooting.

Service Levels and Response Times:

The IT Division strives to provide timely and effective support. Specific service levels and response times may vary depending on the severity and complexity of the issue. Prioritization is typically based on impact to critical City operations.

The IT Division is committed to providing reliable and innovative technology solutions that empower the City to effectively serve its community.

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FINANCE DEPARTMENT
FY 2025-2026 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2025-26
Operating $2,121,126
Positions 8
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SOURCES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Actual Actual Adopted Proposed
General Fund
Charges/Fees for Services - - - -
Use of Resources 1,013,694 1,097,014 1,489,587 1,963,136 Special Revenue Funds 7,280 1,996 7,520 8,326
Capital Project Fund - 25,032 69,436 62,671
Enterprise Funds 1,940 5,738 52,300 59,400
Succesor Agency Trust Fund 30,749 30,433 23,518 27,593
TOTAL 1,053,663 1,160,213 1,642,361 2,121,126
EXPENDITURES BY DEPARTMENT FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Finance Department 1,053,663 1,160,213 1,642,361 2,121,126 TOTAL 1,053,663 1,160,213 1,642,361 2,121,126
CHARACTER OF EXPENDITURES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Personnel
Salaries and Benefits 880,874 976,555 1,168,752 1,414,780 Subtotal 880,874 976,555 1,168,752 1,414,780
Supplies and Services
Purchased Services 163,360 174,867 467,109 701,546
Supplies and Materials 6,787 8,791 6,500 4,800
Capital Expenditures - - - -
Other Expenditures 2,642 - - -
Subtotal 172,789 183,658 473,609 706,346
TOTAL 1,053,663 1,160,213 1,642,361 2,121,126
AUTHORIZED STRENGTH FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Finance Director 1.00 1.00 1.00 1.00
Financial Services Manager 1.00 1.00 1.00 1.00
Senior Management Analyst 1.00 - - -
Accountant Senior2 - 1.00 1.00 2.00
Accountant I 1.00 1.00 1.00 1.00
Account Technician I/II1 2.00 2.00 1.00 1.00
Senior Accounting Technician1 - - 1.00 1.00
Grant Coordinator 1.00 1.00 1.00 1.00
TOTAL 7.00 7.00 7.00 8.00
1 2
FY 2025-2026 Budget

FINANCE DEPARTMENT
Department Summary
The FY25 Midyear budget session, effective March 18, 2025, approved an amendment to the City's Classification Plan adding 1.0 FTE Accountant Senior.

Reducing Accounting Technician I/II from FTE 2.0 to 1.0. Created Senior Accounting Technician Position of FTE 1.0.

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FINANCE DEPARTMENT
FY 2025-2026 Budget
Department Summary
Finance Department functions include administration, financial reporting, tax administration, budgeting, forecasting, cash management and treasury, capital financing and debt management, and risk management.

The department has an authorized staffing level of eight positions, including: Finance Director/District Treasurer, Financial Services Manager, Accountant Senior (2), Accountant I, Senior Accounting Technician, Accounting Technician I/II, and Grants Coordinator.

Goals related to the Council Strategic Priorities for Finance Department include:
• Research new and diverse revenue sources, including grants and/or fees • Maintain 10-year financial forecasts to enhance transparency and accountability • Assess community needs, strategies, and support for funding public infrastructure initiatives.
• Assist the Sanitary District in developing finance and accounting procedures, improving efficiency, and supporting integration within the City. • Research options for the early termination of the Successor Agency to expedite dissolution and maximize the allocation of local tax revenues.
• Maintain an ongoing focus on improving daily operations to enhance effectiveness and efficiency in serving both City staff and external clients.

SIGNIFICANT CHANGES
FY 2024-2025 to FY 2025-2026 Budget:

The increase of $478,765 (+29.2%) from the FY 2024-25 Adopted Budget to the FY 2025-26 Proposed Budget is primarily due to the increases of salaries and benefits by $246,028 for the new Finance position.

Additionally, there’s an increase in professional and technical services by $378,599 which encompasses Caselle, a 10-Year fiscal strategy and structural deficit plan, and the implementation of a centralized grants management system. These are partially offset with a decrease in legal and accounting services of $379,175.

Fiscal Year (FY) Budget $ Change from
Previous FY
% Change from
Previous FY
2024-25 Adopted $1,642,361
2025-26 Proposed $2,121,126 $478,765 29.2%

MISSION STATEMENT
Maintain the financial integrity of the City by providing fiscal management and oversight, including safeguarding assets. Oversee financial, compliance, and operational reviews and/or audits that provide independent and objective analysis of City departments; provide accurate, complete, and timely financial records, and enhance the City’s financial reporting systems, controls, and disbursements.

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FINANCE DEPARTMENT
FY 2025-2026 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Assess and Prepare for Utility Operational and
Finance Needs.

On going effort.

2. Analyze needs, strategies and community
support for funding public infrastructure
improvements.

On going effort.

3. Perform Impact Fee Nexus Study. Completed.

The New fee is effective as of May 2025.

4. Maintain and Update 10-year Financial
Projections.

On going effort.

The City reviews the Forecasting Model annually
and updates it based on economic indicators and
input from Departments.

5. Continue ERP Implementation – Budget
module has not been implemented yet for the
fiscal year 2024-25 budget development.

Completed.

In the preparation of FY25-26 Budget, the City
utilized the Budget module embedded in ERP
System.

6. Implementation of new credit card payment
system for various City services.

The Payment system test is completed both at
Tate building and PD office. Waiting for PCI
Compliance training to be provided.

7. Complete FY2023-24 Annual Comprehensive
Financial Report and submit application to
Government Finance Officers Association
(GFOA) by December 2024.

ACFR was issued and submitted to GFOA on
December 23, 2024.

8. Tasks related to Sanitary District incorporation
to the City as a subsidiary district including
but not limited to examination and
investigation of the District’s financial
records, and assumption of the budget
administration and management, the financial
operation and the financial reporting.

EPASD Financial data migration is completed
(Budget and GL).

Operational procedures are set up.

EPASD Audit was completed on March 6, 2025.

9. Issue an RFP for and perform Cost Allocation
and Master Fee studies reflecting the
incorporation of the Sanitary District as a
subsidiary district.

Completed.

The City entered into a contract with Matrix. Inc.

The Council Presentation is scheduled for June 3,
2025.

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FINANCE DEPARTMENT
FY 2025-2026 Budget

OBJECTIVES

1. Develop a Long-Term Fiscal Strategy and Structural Deficit Plan (Council Strategic Priority Work Plan).

2. Maintain and Update 10-year Financial Projections to Enhance Transparency and Accountability.

3. Research Options for the Early Termination of the Successor Agency to Expedite Dissolution and Maximize the Allocation of Local Tax Revenues.

4. Develop and Implement CalPERS Prefunding Strategy.

5. Assess and prepare for utility operational and finance needs (Council Strategic Priority Work Plan).

6. Implement a Grants Management System (Council Strategic Priority Work Plan).

7. Conduct a Comprehensive review of Financial Policies Including Credit Card Policy and Internal Control Policy.

8. Complete FY2024-25 Annual Comprehensive Financial Report and submit application to Government Finance Officers Association (GFOA) by December 2024 for both City and Sanitary District.

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FINANCE DEPARTMENT
FY 2025-2026 Budget
Total FTE’s: 8.0
Financial Services Manager
Accountant
Senior (2)
Accountant I Grant
Coordinator

FINANCE DIRECTOR/

DISTRICT TREASURER
Tomohito Oku
Accounting
Technician I/II
Senior Accounting
Technician
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2025-26
Operating $7,149,087
Positions 20
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146
Department Summary
SOURCES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Actual Actual Adopted Proposed
General Fund
Charges/Fees for Services 883,792 714,232 2,905,799 2,061,132 Use of Resources 2,423,033 2,554,967 3,188,544 2,637,516 Special Revenue Funds 2,519,077 1,800,742 1,585,130 2,450,439 Capital Project Funds - - - -
Enterprise Funds 87 - - -
Succesor Agency Trust Fund - - - -
TOTAL 5,825,989 5,069,941 7,679,474 7,149,087
EXPENDITURES BY DIVISION FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Administration Division 895,483 680,671 908,186 887,782 Building Services Division 786,374 1,165,948 2,931,620 1,735,132 Housing & Econ Development 2,094,709 1,698,191 1,654,595 2,798,131 Planning Division 2,049,423 1,525,131 2,185,073 1,728,042 TOTAL 5,825,989 5,069,941 7,679,474 7,149,087
CHARACTER OF EXPENDITURES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Personnel
Salaries and Benefits 2,327,847 2,699,721 3,406,945 3,549,229 Subtotal 2,327,847 2,699,721 3,406,945 3,549,229
Supplies and Services
Purchased Services 1,761,430 2,282,873 4,155,541 3,493,958 Supplies and Materials 36,709 26,514 47,188 31,600
Capital Expenditures - 833 9,800 14,300
Other Expenditures 1,700,005 60,000 60,000 60,000
Subtotal 3,498,143 2,370,220 4,272,529 3,599,858
TOTAL 5,825,990 5,069,941 7,679,474 7,149,087
AUTHORIZED STRENGTH FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Administration Division 4.00 4.00 4.00 4.00
Building Services Division 7.00 7.00 7.00 7.00
Housing & Econ Development 4.00 4.00 4.00 4.00
Planning Division 4.00 5.00 5.00 5.00
TOTAL 19.00 20.00 20.00 20.00

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Department Summary
The Community and Economic Development Department consists of four divisions: Administration, Building, Planning, and Housing/Economic Development. The Department is responsible for a wide range of functions including:
• Coordinating and managing the City’s development related functions (e.g. planning entitlement and permit processing; long range planning and development review; inspection services; assisting the production, preservation, and protections of affordable housing; and supporting compliance with the building code through enforcement);
• Coordinating business development and retention efforts through both capital projects and direct economic development efforts;
• Providing staff support to the Planning Commission and Rent Stabilization Board; • Collaborating with regional organizations (e.g. County Collaborative: 21 Elements, City/County Association of Governments (C/CAG), Metropolitan Transportation Committee (MTC), the South Bayside Waste Management Authority and the San Francisquito Creek Joint Powers Authority). .

MISSION STATEMENT
The Community & Economic Development Department seeks to make East Palo Alto a wonderful place to live, work, and play. The Department accomplishes this through effective current and long-range municipal planning, housing management, ensuring code compliance, and managing business attraction, small-business support, economic development, and retention opportunities in East Palo Alto.

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COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT
FY 2025-2026 Budget
Total FTE’s: 20.0
DB-67

Office Assistant
Administration
Building Inspector II
Planning Manager
Secretary I/II
Code Enforcement
/Bldg Inspector Hybrid
Assistant/Associate
Planner (2)
Management Analyst I/II
Building Services Housing & Econ Dev
Housing Project
Manager
Planning
Housing & Econ Dev
Manager

ASSISTANT CITY

MANAGER

COMMUNITY & ECONOMIC

DEVELOPMENT DIRECTOR
Amy Chen
Rent Stabilization
RSP Administrator
RSP Coordinator II
Senior Planner
Building Permit
Technician (2)
Chief Building Official
Planning Technician
Code Enforcement
Officer II (2)
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SOURCES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Actual Actual Adopted Proposed
General Fund
Charges/Fees for Services - - - -
Use of Resources 880,004 558,523 742,926 686,231
Special Revenue Funds 15,392 122,148 165,260 201,551
Capital Project Funds - - - -
Enterprise Funds 87 - - -
Succesor Agency Trust Fund - - - -
TOTAL 895,483 680,671 908,186 887,782
EXPENDITURES BY DIVISION FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Administration Division 895,483 680,671 908,186 887,782 TOTAL 895,483 680,671 908,186 887,782
CHARACTER OF EXPENDITURES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Personnel
Salaries and Benefits 518,720 509,069 688,584 675,672
Subtotal 518,720 509,069 688,584 675,672
Supplies and Services
Purchased Services 373,109 167,504 206,202 205,210
Supplies and Materials 3,654 4,098 12,600 6,100
Capital Expenditures - - 800 800
Other Expenditures - - - -
Subtotal 376,763 171,602 219,602 212,110
TOTAL 895,483 680,671 908,186 887,782
AUTHORIZED STRENGTH FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Community & Econ Development Director 1.00 1.00 1.00 1.00 Management Analyst II 1.00 1.00 1.00 1.00
Secretary II 1.00 1.00 1.00 1.00
Office Assistant 1.00 1.00 1.00 1.00
TOTAL 4.00 4.00 4.00 4.00
FY 2025-2026 Budget

COMMUNITY AND ECONOMIC DEVELOPMENT
Administration Division
Division Summary
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Administration Division Summary
The Administration of the Community and Economic Development Department is led by the Community and Economic Development Director with the assistance of one Management Analyst I/II and two (2) administrative support staff. The Administration Division manages the activities of and sets policy for the Department, manages budgets, and coordinates grant partnerships and contract administration, and oversees other administrative processes. Additionally, the Administration Division of Community and Economic Development works collaboratively with Public Works and is co-located with the Public Works Administration Division at the Tate Street offices which is referred to as the City Permit Center.

SIGNIFICANT CHANGES
FY 2024-2025 to FY 2025-2026 Budget:

The decrease of $20,404 (-2.2%) from the FY 2024-25 Adopted Budget to the FY 2025-26 Proposed Budget is primarily due to the decreases of personnel expenses by $12,912, the removal of postage and delivery services by $6,500, and decrease in membership dues by $10,120.

Fiscal Year (FY) Budget $ Change From
Previous
% Change From
Previous FY
2024-25 Adopted $908,186
2025-26 Proposed $887,782 ($20,404) -2.2%

SERVICE DESCRIPTION
The Community and Economic Development Department provides a wide array of services to the community. The Department provides planning and development related services to property owners and businesses. The Community and Economic Development Department serves as the focal point for business and economic development efforts as well as administration of local affordable housing funds, implementation of the General Plan and Building Codes, and other services including regional agency coordination.

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Division Summary
SOURCES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Actual Actual Adopted Proposed
General Fund
Charges/Fees for Services 639,125 359,071 2,558,880 1,735,132 Use of Resources 147,249 806,785 372,740 -
Special Revenue Funds - 92 - -
Capital Project Funds - - - -
Enterprise Funds - - - -
Succesor Agency Trust Fund - - - -
TOTAL 786,374 1,165,948 2,931,620 1,735,132
EXPENDITURES BY DIVISION FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Building Services Division 786,374 1,165,948 2,931,620 1,735,132 TOTAL 786,374 1,165,948 2,931,620 1,735,132
CHARACTER OF EXPENDITURES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Personnel
Salaries and Benefits 746,404 750,461 1,103,320 1,132,246 Subtotal 746,404 750,461 1,103,320 1,132,246
Supplies and Services
Purchased Services 34,630 407,309 1,805,000 579,736
Supplies and Materials 5,341 8,178 17,800 13,150
Capital Expenditures - - 5,500 10,000
Other Expenditures - - - -
Subtotal 39,970 415,487 1,828,300 602,886
TOTAL 786,374 1,165,948 2,931,620 1,735,132
AUTHORIZED STRENGTH FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Chief Building Official 1.00 1.00 1.00 1.00
Building Inspector II 1.00 1.00 1.00 1.00
Building Permit Technician 2.00 2.00 2.00 2.00
Code Enforcement/Bldg Inspector Hybrid 1 - - 1.00 1.00
Code Enforcement Officer II 3.00 3.00 2.00 2.00
TOTAL 7.00 7.00 7.00 7.00
1 Converted Code Enforcement Officer II to Code Enforcement/Bldg Inspector Hybrid.

FY 2025-2026 Budget
Building Services Division

COMMUNITY AND ECONOMIC DEVELOPMENT
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Building Services Division Summary

SIGNIFICANT CHANGES

Building Services Division responsibilities include project plan review, inspections, permit activities coordination, evaluation, implementation of codes and policies, and construction-related code enforcement for existing and new buildings and properties of all construction types and occupancies. The goal of the Division is to enforce minimum life safety standards for the built environment, which enhances the quality of life for residents and businesses.

Enhancement and constant improvement of building services and streamlining of the permitting and inspection processes are a major component of the City’s economic and business development effort. The Division is managed by the Chief Building Official and is staffed with one Building Inspector, two Neighborhood Preservation Officers, one Building Inspector/Neighborhood Preservation Officer, and two Permit Technicians.

Additionally, the Building Services Division continues to add to customer service and operational efficiencies by developing and distributing educational handouts, policies, procedures, and written interpretations that address enforcement. These resources are also made available online to aid our customers in their efforts related to new construction, additions, alterations, maintenance, and repair of properties and structures in the City of East Palo Alto.

SIGNIFICANT CHANGES
FY 2024-2025 to FY 2025-2026 Budget:

The decrease of $1,196,488 (-40.8%) from the FY 2024-25 Adopted Budget to the FY 2025-26 Proposed Budget is primarily due to a reduction in professional and technical services, specifically the Outside Plan Review and Inspections by $1,366,667.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2024-25 Adopted $2,931,620
2025-26 Proposed $1,735,132 ($1,196,488) -40.8%

SERVICE DESCRIPTION
The Building Division ensures that existing and new/proposed development complies with the California Building Standards Code, Title 24, including California Code of Regulations Titles 8 and 19 as mandated by the State of California. The Division provides customer assistance to residents, property owners, contractors, developers, design professionals and businesses via the City’s Permit Center. Services include plan review, permit issuance and assistance, building inspections, and enforcement of state and local regulatory laws.

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Building Services Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Ongoing improvements of service quality,
efficiency and customer service levels in all
areas of the Building Division’s Permit Center,
Building Inspections, Building Plan Review,
and Code Enforcement.

Implemented technology to improve efficiencies,
including Bluebeam for digital plan review, by Q1
2025. Developed a Standard Operating Procedure
(SOP) for Building Division operations to ensure
consistency and efficiency across all services.

Began beta testing SolarApp+, a platform that
streamlines solar permit applications by
automating approvals for code-compliant
residential solar systems, in Q1 2025, with plans
to fully roll out the tool by the next fiscal year (Q3
2025).

2. Develop and implement efficient processes
aimed at streamlining the approval of
Accessory Dwelling Units (ADUs) by
introducing pre-approved plans. Collaborate
with other agencies who are also developing
similar processes to reduce duplicate efforts
while harnessing their knowledge and
expertise in facilitating a smoother, more
predictable path for property owners.

Partnered with the San Mateo County ADU
Resource Center in 2024 to integrate their
expertise and ensure consistency with countywide best practices for ADU development. The Building Division website will be updated by
April 2025 to include a dedicated ADU section
featuring resources, guides, and pre-approved
ADU plans, providing clear, accessible
information on ADU construction, zoning
requirements, and permitting processes.

3. Continue to support staff to pursue all
applicable certification, training, and
education in order for staff to develop and
achieve their potential for exemplary customer
benefits.

Supported staff development through year-round
training opportunities, including in-person and
remote sessions with CACEO, CALBO, and
EduCode programs, ensuring all Building
Division staff participated as these sessions
occurred. Provided on-the-job training as
situational topics arise, enhancing staff’s technical
and customer service skills.

4. Conduct public outreach relevant to the new
state mandates and building codes.

Prepared content for the Building Division
website to include information on new state ADU
laws, with a planned rollout in Q2 2025, to ensure
residents are informed of the latest mandates and
requirements. Coordinated with the San Mateo
County ADU Resource Center to integrate a link
to their website, which will provide access to
additional resources and guides to support ADU
development and compliance with state building
codes upon completion of the website
enhancements.

5. Foster interdepartmental collaboration to
ensure compliance with all laws and
regulations relating to the built and natural
environment.

Provided interdepartmental training on Bluebeam
software for digital plan review, enabling
seamless collaboration between departments on
plan reviews and ensuring compliance with
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Building Services Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS
building regulations. Actively participated in
Development Review Committee meetings to
coordinate on projects impacting the built and
natural environment. Collaborated with Police,
Planning, and Public Works departments to
address interdepartmental cases.

6. Implement the current building codes, and
adopted amendments (as needed) to ensure a
safe and healthy community.

Continued ongoing implementation of current
building codes and adopted amendments through
regular inspections, ensuring compliance with
safety and health standards. Reviewed and
adopted code amendments as needed to address
community needs, enhancing structural safety and
accessibility in new constructions over the past
year.

7. Implement an electronic submittal, approval,
and inspection process where applicants are
not required to submit hardcopies of plans.

Plans are submitted electrically for review. Upon
approval, one set of plans are printed by the
applicant for construction use.

8. Deploy inspection application for 24/7
scheduling by homeowners or contractors,
ensuring precise inspection timings while
optimizing staff efficiency.

Issued an informal bid proposal to select a vendor
for an inspection application that will enable 24/7
scheduling by homeowners and contractors, with
vendor selection planned for Q2 2025. Testing
and rollout of the application to follow, aiming to
ensure precise inspection timings and optimize
staff efficiency.

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Building Services Division

OBJECTIVES

1. Ongoing improvements of service quality, efficiency and customer service levels in all areas of the Building Division’s Permit Center, Building Inspections, Building Plan Review, and Code Enforcement.

2. Implement the 2025 California Building Standards Code and adopted local amendments to maintain safety, sustainability, and code consistency.

3. Continue to support staff to pursue all applicable certification, training, and education in order for staff to develop and achieve their potential for exemplary customer benefits.

4. Conduct targeted public outreach to educate stakeholders on the 2025 code adoption, major changes, and their implications for building permit applicants.

5. Launch and support SolarAPP+ for the automated, same-day permitting of eligible residential solar energy systems, improving turnaround time and reducing staff review workload.

6. Conduct proactive code enforcement with dedicated staff time allocated to address Tier 3 code violations, ensuring compliance and community safety.

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Division Summary
SOURCES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Actual Actual Adopted Proposed
General Fund
Charges/Fees for Services - - -
Use of Resources 93,254 236,357 234,725 549,243
Special Revenue Funds 2,001,455 1,461,834 1,419,870 2,248,888 Capital Project Funds - - - -
Enterprise Funds - - - -
Succesor Agency Trust Fund - - - -
TOTAL 2,094,709 1,698,191 1,654,595 2,798,131
EXPENDITURES BY DIVISION FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Housing and Economic Development 1,803,387 1,230,713 1,196,626 2,382,437 Rent Stabilization Program 291,322 467,478 457,969 415,694 TOTAL 2,094,709 1,698,191 1,654,595 2,798,131
CHARACTER OF EXPENDITURES FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Personnel
Salaries and Benefits 490,162 662,893 741,298 835,625
Subtotal 490,162 662,893 741,298 835,625
Supplies and Services
Purchased Services 381,339 964,631 843,399 1,897,006
Supplies and Materials 23,203 10,667 9,898 5,500
Capital Expenditures - - - -
Other Expenditures (Loans) 1,200,005 60,000 60,000 60,000 Subtotal 1,604,547 1,035,298 913,297 1,962,506
TOTAL 2,094,709 1,698,191 1,654,595 2,798,131
AUTHORIZED STRENGTH FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Actual Actual Adopted Proposed
Housing & Economic Development Mgr 1.00 1.00 1.00 1.00
Housing Project Manager 1.00 1.00 1.00 1.00
RSP Administrator 1.00 1.00 1.00 1.00
RSP Coordinator II 1.00 1.00 1.00 1.00
TOTAL 4.00 4.00 4.00 4.00
FY 2025-2026 Budget
Housing and Economic Development Division

COMMUNITY AND ECONOMIC DEVELOPMENT
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Housing and Economic Development Division Summary
The Housing and Economic Development Division is a division incorporating programmatic tasks related to affordable housing development and programs, as well as the Rent Stabilization Program. Affordable Housing and economic development programs are funded through multiple sources, including donations, Measure HH, successor housing, and the General Fund. The Rent Stabilization program is fully funded through annual registration fees paid by landlords for regulated rental units. In addition to supporting the Rent Stabilization Board in adopting and implementing regulations for the Ordinances, the staff works directly with residents and landlords to gain compliance with the Ordinances and to improve living conditions for rental residents.

The Division has a staffing level of proposed (4) positions for these services and is supported by staff from the City Attorney’s Office, Planning Division, Building Division, Public Works and Engineering, and the Finance Department. The Division also contracts Information Technology providers, hearing examiners, consultants, and temporary staff as needed.

SIGNIFICANT CHANGES
FY 2024-2025 to FY 2025-2026 Budget:

The increase of $1,143,536 (+69.1%) from the FY 2024-25 Adopted Budget to the FY 2025-26 Proposed Budget is primarily due to increases in personnel expenses by $94,327, staff augmentation by $875,000. and several professional and technical services increased by $174,209.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2024-25 Adopted $1,654,595
2025-26 Proposed $2,798,131 $1,143,536 69.1%

SERVICE DESCRIPTION
Administer affordable housing and economic development programs, including the Rent Stabilization Program. The Program administers the Rent Stabilization and Eviction for Just Cause Ordinances. The primary purpose of these Ordinances is to 1) stabilize rents, 2) protect residential tenants from unreasonable rent increases and unjust or retaliatory evictions; and 3) facilitate improvements for an economically viable rental housing market. The Affordable Housing and economic development programs including various initiatives to increase housing affordability, business development, workforce development, and job creation in East Palo Alto.

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