Agenda packet — East Palo Alto City Council, June 23, 2026 (part 1 of 2)

EAST PALO ALTO CITY COUNCIL

SPECIAL MEETING AGENDA
Tuesday, June 23, 2026, 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.

The public may participate in the City Council Meeting via Zoom Meeting or by attending inperson in the Council Chambers at 2415 University Ave, First Floor East Palo Alto, CA 94303.

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International numbers available: https://zoom.us/u/aMWYF4KT East Palo Alto City Council June 23, 2026 Agenda
1 1. CALL TO ORDER AND ROLL CALL

2. APPROVAL OF THE AGENDA

3. PUBLIC COMMENT

4. ADJOURN CITY COUNCIL SPECIAL MEETING AND RECONVENE TO THE JOINT

SUCCESSOR AGENCY SPECIAL BOARD MEETING

5. JOINT SUCCESSOR AGENCY BOARD PUBLIC HEARING

5.1 Adoption of FY 2026-27 Successor Agency Budget

6. ADJOURN JOINT SUCCESSOR AGENCY BOARD SPECIAL MEETING TO THE

EAST PALO ALTO SPECIAL MEETING

7. PUBLIC HEARINGS

7.1 Adoption of the Fiscal Year 2026-27 Budget, Fiscal Years 2026-27 and 2027-28 Capital Improvement Program (CIP), and Fiscal Year 2026-27 Capital Budget

7.2 Establishing the Fiscal Year 2026-27 Appropriation Limit

7.3 Disruption Policy (SB 707)
Recommendation:

Adopt a Resolution approving the Fiscal Year 2026-27 Successor Agency Budget.

Recommendation:

Convene a public hearing, accept public comment, and take the following actions necessary to adopt the Fiscal Year 2026-27 budget.

1. Adopt a resolution adopting the Fiscal Year 2026-27 Budget.

2. Adopt a resolution adopting the Fiscal Years 2026-27 and 2027-28 Capital Improvement Program (CIP) and approving the related Fiscal Years 2026-27 Capital Budget.

Recommendation:

Adopt a Resolution establishing the FY 2026-27 Appropriation Limit of $45,312,635.

Recommendation:

East Palo Alto City Council June 23, 2026 Agenda
2 8. COUNCIL REPORTS

9. ADJOURNMENT
Adopt a resolution amending the City of East Palo Alto “Code of Ethics and Conduct for Elected and Appointed Officials” to:

1. Comply with SB 707 by adopting formal policies addressing disruptions of telephonic or internet services during meetings;

2. Clarify the procedures for the orderly receipt of public comment during City Council meetings; and

3. Clarify the procedure for responding to meeting disruptions by members of the public participating in-person or by remote access, consistent with Government Code §§ 54957.95 and 54957.96.

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: June 17, 2026
ATTEST:

James Colin
City Clerk
East Palo Alto City Council June 23, 2026 Agenda
3 JOINT SUCCESSOR AGENCY ITEM 5.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 23, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
SUBJECT: Adoption of FY 2026-27 Successor Agency Budget Recommendation
Adopt a Resolution approving the Fiscal Year 2026-27 Successor Agency Budget, acting as the governing board Successor Agency.

Executive Summary
The proposed Fiscal Year (FY) 2026-27 Successor Agency Budget provides the appropriations necessary to administer the affairs of the former Redevelopment Agency of the City of East Palo Alto and satisfy all approved enforceable obligations during the fiscal year.

The budget reflects the obligations approved through the Recognized Obligation Payment Schedule (ROPS) process and includes appropriations associated with the planned defeasance of the Series 2015A Tax Allocation Refunding Bonds, the final remaining bond obligation of the Successor Agency. Retirement of the bonds is anticipated to facilitate the eventual dissolution of the Successor Agency and the return of redevelopment property tax revenues to the normal property tax allocation process
Background
California dissolved redevelopment agencies effective February 1, 2012, through Assembly Bill x1 26 (ABx1 26), codified in Health and Safety Code Section 34172(a). The dissolution 4 JOINT SUCCESSOR AGENCY ITEM 5.1
framework was subsequently amended by AB 1484 (2012), AB 471 (2014), SB 107 (2015), and related legislation (collectively, the "Dissolution Law").

On January 10, 2012, the City Council elected to serve as the Successor Agency to the Former Redevelopment Agency of the City of East Palo Alto (the "Successor Agency"). The Successor Agency is responsible for winding down the affairs of the former Redevelopment Agency, including administering enforceable obligations, preparing Recognized Obligation Payment Schedules (ROPS), and managing Redevelopment Property Tax Trust Fund (RPTTF) revenues.

As of July 1, 2018, successor agencies within San Mateo County have been overseen by the Countywide Oversight Board staffed by the San Mateo County Auditor-Controller. The Oversight Board reviews and approves successor agency actions and enforceable obligations prior to review by the California Department of Finance.

On March 9, 2026, the Countywide Oversight Board approved the Amended Recognized Obligation Payment Schedule (ROPS) for FY 2026-27, which included appropriations associated with the planned defeasance of the Series 2015A Tax Allocation Refunding Bonds.

Subsequently, on April 15, 2026, the California Department of Finance approved the Amended ROPS. The proposed FY 2026-27 Successor Agency Budget is based on the obligations and funding levels approved through this process and provides the appropriations necessary to satisfy all approved enforceable obligations during the fiscal year The City maintains all financial transactions of the Successor Agency through the Successor Agency Trust Fund. Staff now seek approval of the FY 2026-27 Successor Agency Budget.

Analysis
The FY 2026-27 Successor Agency Budget includes total revenues of $3,586,764 and total expenditures of $5,068,801, resulting in a planned use of available fund balance of $1,482,037.

The budget is based on the obligations approved through the ROPS process and provides the appropriations necessary to satisfy all enforceable obligations during the fiscal year.

The following table summarizes the proposed budget:

Description Amount
Total Revenues $3,586,764
Total Expenditures $5,068,801
Net Change in Fund Balance $(1,482,037)
5 JOINT SUCCESSOR AGENCY ITEM 5.1
The $3.59 million in revenues primarily reflects Redevelopment Property Tax Trust Fund (RPTTF) funding approved by the Countywide Oversight Board and the California Department of Finance for the second half of the FY 2026-27 ROPS period.

The $5.07 million in expenditures includes:
 $5,012,485 for Series 2015A Tax Allocation Refunding Bonds debt service and cash defeasance;
 $56,316 for administrative overhead, financial advisory services, and other costs associated with the implementation of the cash defeasance strategy.

During FY 2026-27, the Successor Agency anticipates implementing the planned cash defeasance of the Series 2015A Tax Allocation Refunding Bonds. The Series 2015A Bonds represent the final remaining bond obligation of the Successor Agency. The defeasance strategy is intended to retire the remaining obligation using available RPTTF revenues and Successor Agency resources and eliminate future debt service, trustee fees, and administrative costs associated with the bonds.

The budgeted use of fund balance is primarily attributable to the one-time cash defeasance of the Series 2015A Bonds. The planned defeasance accelerates the retirement of the remaining bond obligation and is expected to reduce future debt service costs while facilitating the eventual dissolution of the Successor Agency.

Upon retirement of all enforceable obligations and completion of applicable statutory requirements, the Successor Agency may pursue dissolution pursuant to Health and Safety Code Section 34187. Dissolution would conclude the winding-down activities of the former Redevelopment Agency and allow redevelopment property tax revenues to flow through the normal property tax allocation process for distribution to taxing entities.

Fiscal Impact
Adopting the FY 2026-27 Successor Agency Budget provides the necessary local authority to appropriate funds for obligation payments including the planned cash defeasance payment from the Successor Trust.

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 9, 2026.

Environmental
6 JOINT SUCCESSOR AGENCY ITEM 5.1
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines sections 15378(b)(4) and (5), in that it is a fiscal, organizational, or administrative activity that will not result in direct or 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
7 1 of 3
RESOLUTION NO. XX – 2026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO

ACTING AS THE GOVERNING BOARD OF THE SUCCESSOR AGENCY TO THE FORMER

REDEVELOPMENT AGENCY OF THE CITY OF EAST PALO ALTO
APPROVING THE FISCAL YEAR 2026-27 REVENUE AND EXPENDITURE BUDGET

FOR THE SUCCESSOR AGENCY
WHEREAS, pursuant to California Health and Safety Code Section 34173, the City Council of the City of East Palo Alto elected that the City of East Palo Alto would serve as the Successor Agency to the Former Redevelopment Agency of the City of East Palo Alto ("Successor Agency"), effective February 1, 2012; and
WHEREAS, the Successor Agency is responsible for winding down the affairs of the former Redevelopment Agency of the City of East Palo Alto and administering enforceable obligations in accordance with California Health and Safety Code Sections 34170 et seq.; and WHEREAS, the Successor Agency administers Redevelopment Property Tax Trust Fund ("RPTTF") revenues and makes payments for approved enforceable obligations pursuant to Recognized Obligation Payment Schedules ("ROPS") approved by the Countywide Oversight Board and the California Department of Finance; and
WHEREAS, the proposed Fiscal Year 2026-27 Successor Agency Budget includes appropriations necessary to satisfy approved enforceable obligations and administer the affairs of the Successor Agency during the fiscal year; and
WHEREAS, on March 9, 2026, the Countywide Oversight Board approved the Amended Fiscal Year 2026-27 Recognized Obligation Payment Schedule ("Amended ROPS"), including appropriations associated with the planned defeasance of the Series 2015A Tax Allocation Refunding Bonds; and WHEREAS, on April 15, 2026, the California Department of Finance approved the Amended ROPS, thereby authorizing the funding levels reflected in the proposed Fiscal Year 2026-27 Successor Agency Budget; and
WHEREAS, the Successor Agency Board, acting in coordination with the Countywide Oversight Board and consistent with applicable approvals of the California Department of Finance, has reviewed the proposed Fiscal Year 2026-27 Successor Agency Budget and finds it appropriate to provide for the continued administration of Successor Agency activities and payment of approved enforceable obligations.

NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF EAST PALO ALTO HEREBY:

1. Finds the foregoing recitals to be true and correct and are incorporated herein by this reference; and
8 2 of 3

2. Adopts the Fiscal Year 2026-27 Successor Agency Budget, as follows:

FY 2026-27 Successor Agency Proposed Budget Summary
Fund Description
Operating Capital
Improvement
Plan
Operating Transfers Net Change
Revenues Expenditures In Out Fund Balance
705 Successor Operating $ 36,033 $(46,316)
$
-
$
-
$
- $(10,283)
706 Successor Debt Service $ 3,550,731 $(5,022,485)
$
-
$
-
$
- $(1,471,754)
Successor Agency $ 3,586,764 $(5,068,801) $
-
$
-
$
-
$(1,482,037)

3. 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 16th day of June 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
9 3 of 3
Webster Lincoln
Mayor
ATTEST:

James Colin
City Clerk
APPROVED AS TO FORM:

John D. Lê
City Attorney
10 PUBLIC HEARING ITEM 7.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 23, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
SUBJECT: Adoption of the Fiscal Year 2026-27 Budget, Fiscal Years 2026-27 and 2027-28 Capital Improvement Program (CIP), and Fiscal Year 2026-27 Capital Budget Recommendation
Convene a public hearing, accept public comment, and take the following actions necessary to adopt the Fiscal Year 2026-27 budget.

1. Adopt a resolution adopting the Fiscal Year 2026-27 Budget.

2. Adopt a resolution adopting the Fiscal Years 2026-27 and 2027-28 Capital Improvement Program (CIP) and approving the related Fiscal Years 2026-27 Capital Budget.

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  Enhance Community Services and Parks for Residents
Background
On May 12 and May 19, 2026, the City Council held two scheduled budget hearing sessions to 11 PUBLIC HEARING ITEM 7.1
review the proposed Fiscal Year 2026–2027 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.

City Council Strategic Priorities Alignment:

The City’s budget is guided by the City Council’s Strategic Priorities and the FY 2027-28 Work Plan. This helps ensure that limited resources are focused on the community’s most critical needs.

Strategic Priorities were developed through a comprehensive community engagement process involving residents, stakeholders, and community leaders, and focus on:
 Emergency and Disaster Preparedness
 Public Infrastructure, Facilities, and Utilities
 Livability / Community Quality of Life
 Land Use, Economic, and Workforce Development
 Housing
 Governance, Organizational Strength, and Fiscal Sustainability  Civic Engagement
FY 2026-27 represents the second year of the two-year work plan cycle. Staff is focused on implementing these priorities while balancing limited financial and staffing resources. The FY 2026–27 Proposed Budget reflects these priorities through targeted investments.

Community Engagement and Alignment with Resident Priorities:

The FY 2026–27 Proposed Budget reflects the City’s continued commitment to aligning resources with the needs and priorities identified by East Palo Alto residents, including input from the “EPA Talks” initiative and a citywide survey conducted in late 2025.

Residents identified the following as top priorities:
 Providing safe and clean drinking water
 Replacing deteriorating water pipes
 Providing safe places for children and teens
12 PUBLIC HEARING ITEM 7.1
 Improving storm drains to prevent flooding on City streets  Providing an Emergency Operations Center
Survey results indicate strong support for increased investment in infrastructure, community facilities, and public safety.

The FY 2026–27 Proposed Budget incorporates these community-identified priorities through targeted investments in infrastructure, service delivery, and capital planning. These investments are intended to address critical system needs, improve quality of life, and ensure the City continues to respond to the issues that matter most to its residents.

The City will continue to gather community input and use it to guide future budgets and longterm financial planning efforts.

EPASD Budget Integration:

The East Palo Alto Sanitary District (EPASD) has operated as a subsidiary of the City since October 1, 2024. Its finances are included in the City’s budget; however, the District’s budget is presented as a standalone enterprise fund within the City’s financial plan to maintain transparency and accountability. A separate EPASD budget document was reviewed by the EPASD Board on June 2, 2026.

This approach allows for clear oversight and public accountability specific to the District, while aligning with the City’s financial reporting and appropriation processes. The District will continue to maintain a distinct operational and capital budget and issue separate audited financial statements
Analysis
FY 2026-27 Proposed Budget Overview
The City budget is organized into four primary fund types:
 General Fund, which supports core services such as public safety and administration  Restricted Funds, which must be used for specific purposes  Capital Funds, which support infrastructure and major projects  Enterprise Funds, which support fee-based services such as sewer and water operations
Citywide revenues for FY 2026–27 are projected to total approximately $68.5 million, while expenditures are projected to total approximately $82.9 million. This results in an overall deficit of approximately $14.3 million. This deficit is largely driven by negative net positions in the Restricted and General Funds, which are proposed to be covered through use of reserves.

The projected fund balances by major fund type are:
13 PUBLIC HEARING ITEM 7.1
 Restricted Funds: -$14.3 million (deficit)
 Capital Funds: $2.1 million surplus
 Enterprise Funds: $2.6 million surplus
 General Fund: -$4.7 million (deficit)
The table below summarizes the City’s FY 2026-27 proposed budget by fund type.

Fund Analysis by Fund Type:

The General Fund is the City’s primary operating fund and supports core municipal services, including public safety, public works, community development, administrative services, and other general governmental functions. General Fund revenues are largely derived from property taxes, sales taxes, transient occupancy taxes, utility users taxes, and other unrestricted revenues.

For FY 2026–27, the General Fund is projected to have a deficit of approximately $4.7 million.

Additional discussion of the General Fund’s fiscal condition, budget challenges, and long-term outlook is provided in subsequent sections of this report.

Restricted Funds consist of special revenue funds and account for revenues that are legally restricted for specific purposes and cannot be used for general governmental operations.

These funds include housing programs, transportation and infrastructure programs, and community programs funded through dedicated taxes, grants, fees, and intergovernmental revenues.

The FY 2026–27 budget reflects a net deficit of approximately $14.3 million within Restricted Funds. This result is primarily attributable to timing differences between when revenues are Description
General
Fund
Restricted
Funds
Capital
Funds
Enterprise
Funds
TOTAL
CITY
FUNDS
Total Revenues 35,349 10,974 4,793 17,360 68,475
Total Expenditures (39,095) (26,263) (2,727) (14,786) (82,872) Net Sources / (Uses) (3,747) (15,289) 2,066 2,574 (14,397) Net Transfers (989) 989 - - -
Change in Fund (4,736) (14,300) 2,066 2,574 (14,397)
Use of Reserve 4,736 16,409 764 2,664 24,573
FY 2026-27 Proposed - Citywide Funds ($ In 000's)
14 PUBLIC HEARING ITEM 7.1
received and when expenditures occur. Many restricted revenues are collected and accumulated over multiple years before being expended on eligible programs or projects. As a result, annual surpluses or deficits within these funds do not necessarily indicate a structural imbalance but rather reflect the timing of project implementation and program expenditures.

Within the Restricted Funds category, Housing Programs reflect a deficit of approximately $13.3 million, primarily due to planned expenditures for the Affordable Housing Production Notice of Funding Availability (NOFA) program and the Affordable Housing Preservation program. These expenditures are supported by previously accumulated housing resources dedicated to advancing the City’s affordable housing goals. This deficit is not operational, it reflects a spending down of accumulated housing funds on specific housing efforts identified by the City Council.

Community Programs reflect a deficit of approximately $1.2 million, largely attributable to expenditures for the park lighting project and Transient Occupancy Tax (TOT)-funded community programs. These investments support community programs and events and quality-of-life initiatives throughout the City. The lighting project is a capital project, however, the City funds community programs every year. For program sustainability, as the City spends down reserves, it should ensure projected expenditures match projected expenditures.

Transportation and Infrastructure Programs reflect a surplus of approximately $192,000. The surplus is primarily the result of current-year revenues and available resources supporting various capital improvement projects and infrastructure investments that have been appropriated through the CIP.

The projected Restricted Funds deficit will be funded through previously accumulated restricted fund balances that are reserved for their intended purposes.

Capital Funds account for resources dedicated to the acquisition, construction, rehabilitation, and replacement of public infrastructure and facilities. These funds support major capital investments such as street improvements, storm drainage systems, public facilities, and other long-term assets.

For FY 2026–27, Capital Funds are projected to generate a surplus of approximately $2.1 million. While capital projects frequently experience timing differences between expenditures and grant reimbursements, the projected surplus in FY 2026–27 is primarily attributable to developer impact fee revenues that are collected in advance of project expenditures. These revenues are restricted for future capital improvements and will be utilized as projects advance through design and construction phases in future fiscal years.

Enterprise Funds account for business-type activities that are primarily supported through user fees and service charges. The City’s Enterprise Funds include garbage collection services, water utility operations, sewer utility activities associated with the East Palo Alto Sanitary District (EPASD).
15 PUBLIC HEARING ITEM 7.1
The FY 2026–27 Enterprise Funds budget reflects a surplus of approximately $2.6 million. The surplus is primarily driven by developer impact fee revenues within the sewer and water utility operations, including approximately $2.5 million in sewer connection and impact fee revenues and approximately $1.2 million in water impact fee revenues. These revenues are intended to support future capital infrastructure investments required to accommodate growth and maintain utility systems. Excluding these one-time development-related revenues, operating results within the utility funds are substantially more balanced and reflective of ongoing service delivery costs.

Key Budget Issues and Approach
The FY 2026–27 Proposed Budget reflects several financial challenges, including rising personnel costs, inflation, increased service demands, and the need for continued investment in infrastructure and technology.

Departments made significant efforts to reduce costs; however, many reductions are not sustainable without affecting service levels. In some cases, departments are deferring needs or absorbing additional workload to maintain services.

The proposed budget takes a constrained approach. It prioritizes maintaining essential services and advancing key City Council priorities, while limiting new spending to critical or one-time needs. Despite these efforts, the City is not able to fully address all infrastructure and facility needs.

Key considerations that shape the proposed budget include:
a. General Fund Condition
b. Available Reserves and Use of Reserves
c. City Council Strategic Priorities and Community Input d. Personnel Changes
e. Two-year Capital Improvement Program (CIP) Update
The remainder of this report is organized by sections that discuss considerations a). through e)., above, and provide context for the City’s fiscal strategy. a. General Fund Condition
City Council priorities and community input are the forefront of this budget; however, the General Fund condition establishes the scope of possibilities. That is, the City can only meet priorities that it can fund. The FY 2026–27 Proposed General Fund Budget is structurally imbalanced. General Fund revenues are projected to total approximately $35.3 million, while expenditures are projected at approximately $39.1 million. This results in an operating deficit of approximately $3.7 million and a total deficit of $4.7 million after transfers.

This condition reflects a structural imbalance in which ongoing expenditures exceed ongoing revenues. The projected $4.7 million General Fund deficit reflects a combination 16 PUBLIC HEARING ITEM 7.1
of revenue adjustments and increased costs. Staff will continue to monitor General Fund performance closely and recommend adjustments as needed to maintain long-term fiscal stability.

Structural General Fund Deficit
Revenue growth has not kept pace with rising costs. Key revenue sources, particularly tax revenues, have grown modestly or remained flat, while expenditures—especially personnel costs, insurance, and inflationary impacts on goods and services—continue to increase at a faster rate.

As a result, the City has experienced a structural General Fund deficit since FY 2020–21.

While recent budgets have been balanced—and in some cases have resulted in year-end surpluses—these outcomes have relied heavily on one-time factors, including federal relief funding, vacancy savings, delayed implementation of professional service contracts, and conservative expenditure management. These measures are not sustainable.

Key factors contributing to the structural imbalance include:

1. Property Tax In-Lieu of VLF Shortfalls: A projected $2.5 million shortfall in FY 2026–27 due to ongoing impacts of State legislation affecting school funding formulas and vehicle license fee (VLF) allocations. While the State has historically provided backfill payments, recent actions have reduced the backfill to approximately 60% of the shortfall, and no permanent solution has been enacted.

2. Slowing Property Tax Growth: Property tax revenue growth is projected at approximately 3.0% in FY 2026–27, significantly below the historical 10-year average of 7.5%. This slowdown reflects broader housing market conditions and limited new taxable development due to infrastructure constraints, sewer service challenges, commercial real estate market conditions, and delays in key planning efforts such as the Ravenswood Business District Specific Plan.

3. Measure L/JJ Revenue Shift: East Palo Alto voters approved Measure O, the East Palo Alto Residential Rental Business License Tax Measure in 2016. The tax was amended by voters in 2022 with Measure L. For eight years, from 2016 to 2024, revenues generated from the tax were unrestricted in the General Fund and appropriated by the City Council to meet various needs.

Voters amended the tax again in November 2024 with Measure JJ, restricting use of the tax revenues to housing efforts. Since FY 2025–26, the approximate $1.7 million in annual landlord business license tax revenues have been redirected from the General Fund to a Special Housing Fund. The General Fund retains only up to 20% of this revenue (approximately $340,000) for administrative purposes, resulting in an ongoing net reduction of approximately $1.3 million in flexible General Fund revenues. The City continues to adjust to this change, as planned operations around and relied on these tax revenues as general funds for eight years.

4. Weak Transient Occupancy Tax (TOT): The City only has one source of TOT revenues. TOT revenues remain below pre-pandemic levels due to slow recovery in 17 PUBLIC HEARING ITEM 7.1
the travel and hospitality sectors.

5. Flat or Declining Sales Tax: Sales tax growth has remained modest due to persistent inflation, reduced discretionary spending, and ongoing shifts in consumer behavior toward online and service-based spending.

6. Limited Revenue Diversity: The City’s General Fund relies heavily on a small number of economically sensitive revenue sources, including property tax, sales tax, and TOT, increasing exposure to economic volatility.

7. Temporary Reduction in RPTTF Revenues (Cash Defeasance): Redevelopment Property Tax Trust Fund (RPTTF) revenues are a component of property tax revenues and represent tax increment generated from former Redevelopment Agency (RDA) areas, net of pass-through payments to other taxing entities and enforceable obligations. The planned cash defeasance of the Successor Agency’s Tax Allocation Refunding Bonds will result in a temporary reduction of approximately $1.3 million in RPTTF revenues to the General Fund in FY 2026–27. While this action is expected to generate long-term fiscal benefits, including an estimated increase of approximately $1.6 million in ongoing annual revenues in average beginning in FY 2027–28, it contributes to near-term revenue pressure.

General Fund Revenue
General Fund revenue is projected to decrease by approximately $0.7 million, or 2.0 percent, compared to the prior year. This decline reflects a mix of economic challenges, policy changes, and evolving market conditions affecting key revenue sources, summarized below:
 Property Tax: Revenue is projected to decrease by $767,000 (4.3%). This decline is primarily driven by a reduction in Redevelopment Property Tax Trust Fund (RPTTF) revenues (former RDA incremental property tax) of approximately $1.3 million, resulting from the planned defeasance of the Successor Agency’s Tax Allocation Refunding Bonds, which the City Council authorized on February 24, 2026. This impact is expected to be temporary through FY 2026–27, with property tax revenues projected to increase by approximately $1.6 million annually in average beginning in FY 2027–28 following completion of the defeasance and dissolution of the Successor Agency.

In addition, growth in assessed property values has slowed significantly—estimated at 3.0% compared to the 10-year average of 7.5%. The projection also excludes any backfill for the loss of property tax in-lieu of VLF revenues experienced in FY 2025–

26. The State omitted property tax in-lieu of VLF backfill payments from its proposed budgets in consecutive years, but added those payments in revised budgets after significant lobbying efforts by East Palo Alto, County of San Mateo, and other cities within the County who rely on these payments to provide government services.

In FY 2024-25; however, the State only provided roughly 60 percent of the backfill owed. East Palo Alto and other San Mateo County governments are appealing to the State to provide the full FY 2025-26 backfill; however, given State budget challenges, 18 PUBLIC HEARING ITEM 7.1
a payment is not certain.
 Sales Tax: Revenue is projected to increase by $148,000 (2.6%) compared to the prior year. The FY 2026–27 projection of approximately $5.8 million remains below the $6.0 million achieved in FY 2023–24, reflecting ongoing softness in consumer spending. This trend appears to be driven by persistent inflation and restrictive monetary policy, as well as broader shifts in consumer behavior—from brick-andmortar retail to online purchases and from goods to service-oriented spending.  Business License Tax: Revenue is projected to increase modestly by approximately $30,000 compared to FY 2025–26. This increase is based on recent trends observed in FY 2024–25 and year-to-date collections. The projection reflects only revenues from regular business activity and excludes Measure JJ-related revenues. As noted above, since FY 2025–26, approximately $1.7 million in Measure JJ revenues were shifted from the General Fund to a special revenue housing fund and are no longer reflected in this category.
 Interest Income: Revenue is projected to decline by approximately $68,000 due to anticipated reductions in federal interest rates, which are expected to lower returns on the City’s permitted investments. This revenue is reported 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.

Revenue growth remains limited and uncertain. The table below shows FY 2025-26 revenue at mid-year and FY 2026-27 projected General Fund revenue:
19 PUBLIC HEARING ITEM 7.1
General Fund Expenditure
Total General Fund expenditures, including net transfers, are proposed at approximately $40.1 million for FY 2026-27. 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. To better provide the level of service the community desires, staff requested new positions for various departments, but the City cannot afford to add head count. Projected expenditures also reflect 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 $0.7 million (1.9%) compared to the FY 2025-26 Adopted Budget. Expenditures are increasing primarily due to higher personnel costs, including wages and benefits, as well as increased costs for insurance and other services. Inflation continues to impact the cost of goods and services across departments.

It is also important to note that, in recent years, the City has discontinued its practice of making General Fund contributions to the capital reserve funds in order to maintain operational balance for future capital improvement projects (CIP). While this approach has helped balance the budget in the short term, it limits the City’s ability to fund long-term infrastructure needs.

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

General Fund Revenue FY 2025-26
Mid-year
FY 2026-27
Proposed Variance %
Property taxes $ 17,773,000 $ 17,006,190 $ (766,810) -4.3% Sales taxes 5,679,000 $ 5,827,100 148,100 2.6%
Transient Occupancy Tax 2,200,000 $ 2,200,000 - 0.0%
Business License Tax 800,000 $ 830,000 30,000 3.8%
Utility Users Tax 2,094,000 $ 2,160,558 66,558 3.2%
Other taxes 90,000 $ 140,000 50,000 55.6%
Licenses, fees and permits 1,552,000 $ 1,725,334 173,334 11.2% Charges for services 2,719,000 $ 2,206,280 (512,720) -18.9% Fines and forfeitures 495,000 $ 632,500 137,500 27.8%
Use of money and property 2,010,000 $ 1,941,764 (68,236) -3.4% Grants and intergovernmental 65,000 $ 65,000 - 0.0%
Other Miscellaneous Revenues 605,000 $ 613,800 8,800 1.5% Total GF Revenues $ 36,082,000 $ 35,348,525 $ (733,475) -2.0% 20 PUBLIC HEARING ITEM 7.1
Personnel costs across all departments increased due to merit increases, the Cost of Living Adjustments (COLAs) negotiated in labor agreements and other increased benefits costs.

See the summary of the major variances by department below:
 City Manager’s Office (incl. Administration, HR, IT, and Community Services): The FY 2026–27 proposed budget reflects a reduction of approximately $1.0 million compared to the prior year. The FY 2025–26 budget included several one-time and strategic priority initiatives, including a community survey and financing options study ($200,000), economic development strategic plan ($125,000), emergency planning and preparedness efforts ($100,000), compensation and classification studies ($100,000), citywide ergonomic assessments ($150,000), and park improvements ($350,000), totaling approximately $1.0 million. Most of these projects have been initiated, and any remaining balances are expected to be encumbered and carried forward through the FY 2026–27 mid-year budget process.
 Community and Economic Development (Incl. Administration, Building, Planning, Housing and RSP): The FY 2026–27 proposed budget reflects a reduction of approximately $739,000 compared to the prior year. The FY 2025-26 budget included a few one-time initiatives and contracts including proactive code enforcement efforts ($150,000), Outside Plan Review and Inspection contracts ($333,000), and Rent Registry ($150,000) totaling approximately $633,000. Most of these projects have been initiated, and any remaining balances are expected to be encumbered and carried forward through the FY 2026–27 mid-year budget process.  Police: the variance ($1.2 million) is largely related to an increase in the dispatch service contract ($0.5 million) and the personnel cost increase resulting from COLAs negotiated in the Police Officer’s Association (POA) labor agreement, regular promotions, and the rising health costs and other benefits.
 Capital and Technology:

The FY 2026–27 Proposed Budget includes $1.2 million in one-time funding for General Fund Expenditure by
Department
FY 2025-26
Adopted
FY 2026-27
Proposed Variance %
City Council 272,105 261,352 (10,753) -4.0%
City Attorney 1,461,060 1,617,805 156,745 10.7%
City Clerk 581,228 667,379 86,151 14.8%
City Manager 6,391,444 5,350,822 (1,040,622) -16.3%
Finance 1,963,136 1,928,635 (34,501) -1.8%
Community & Economic Development 4,282,954 3,544,234 (738,720) -17.2% Public Works 6,626,667 6,760,504 133,837 2.0%
Police 16,387,257 17,583,877 1,196,620 7.3%
Non-Departmental
Capital/Technology - 1,158,000 1,158,000 N/A
Insurance and Settlements 1,066,347 1,123,373 57,026 5.3% Other Non-Departmental 1,990,391 1,959,796 (30,595) -1.5% Overhead Allocation (2,647,709) (2,860,620) (212,911) 8.0% Sub-total 38,374,880 39,095,159 720,279 1.9%
Transfers - Operational 874,812 989,268 114,456 13.1%
Transfers - Capital - - - N/A
Total General Fund Expenditures $ 39,249,692 $ 40,084,427 $ 834,735 2.1% 21 PUBLIC HEARING ITEM 7.1
technology improvements. These investments include cybersecurity upgrades, system modernization, and improvements to internal systems and public-facing platforms. This reflects initial implementation of the IT Strategic Plan adopted by the Council on April 7, 2026. These prioritized projects from the IT Strategic Plan are intended to be funded on a one-time basis through the IT Projects Fund (IT Reserve). The total includes approximately $402,000 for Network and Security Projects, which are grouped as a single category to provide flexibility in addressing evolving cybersecurity and infrastructure risks.

The remaining approximately $756,000 supports a range of foundational technology initiatives, including:
 Disaster recovery and continuity program enhancements  ERP project support and consulting assistance
 Financial and operational business process review
 Website and intranet modernization, including consulting support  GIS assessment and technical expertise
 IT governance enhancements
 Document management system improvements
 Implementation of an electronic procurement (eBid) platform These investments are critical to addressing long-standing technology gaps and advancing the City’s operational capabilities. While these costs are proposed as onetime investments, certain components—such as GIS support and ongoing governance enhancements—may require future ongoing funding as systems are implemented and matured.

More detailed information will be provided by respective department presentations. b. Available Reserves and Use of Reserve
As of June 30, 2026, the General Fund reserve is projected to be approximately $17.9 million, excluding the $12.0 million contingency reserve, which is maintained at approximately 30% of General Fund expenditures in accordance with City policy. The remaining unassigned reserve is available at the City Council’s discretion to address fiscal imbalances and one-time needs.

To balance the FY 2026–27 Proposed General Fund Budget, staff recommend a one-time use of reserves totaling $4.7 million, consisting of $1.2 million from the IT reserve fund and $3.6 million from the General Fund unassigned reserve. This action is projected to reduce the unassigned reserve balance to approximately $14.3 million. The proposed General Fund expenditure includes approximately $1.9 million in Strategic Priority projects, which are primarily driven by professional services and consulting engagements. This amount reflects direct project costs only and excludes related indirect costs such as internal staff time for project management and oversight, and departmental administrative support.

The proposed use of unassigned reserves ($3.6 million) reflects both near-term fiscal 22 PUBLIC HEARING ITEM 7.1
pressures and timing-related revenue factors. The General Fund revenue projection does not assume potential backfill of the property tax in-lieu of VLF shortfall from FY 2025–26, which could range from approximately $1.5 million to $2.5 million based on recent State actions. In addition, the City will experience a temporary reduction of approximately $1.3 million in RPTTF revenues in FY 2026–27 due to the planned cash defeasance of Successor Agency bonds, with revenues expected to increase by approximately $1.6 million annually in average beginning in FY 2027–28.

While the use of reserves is necessary to maintain service levels in the near term, it is not a sustainable long-term solution. Continued reliance on one-time reserves to fund ongoing operations will require structural budget adjustments in future years.

The table below outlines the June 30, 2026 projected reserves by program type, across all governmental fund types.
c. City Council Strategic Priorities
The FY 2026–27 Proposed Budget continues to be developed in alignment with the City Council’s adopted FY 2025–2029 Strategic Priorities and the FY 2025–2027 Council Work Plan. As the City enters the second year of the two-year Work Plan cycle, the focus has shifted from planning and prioritization to implementation of Council-directed initiatives.

Given the City’s ongoing fiscal constraints and limited staffing capacity, the proposed budget prioritizes maintaining essential services while advancing a targeted set of Strategic Priority projects that are already underway or are critical to achieving Council goals. Core services— including public safety, maintenance, housing and anti-displacement programs, and administrative operations—remain fully funded to ensure continuity of service delivery.

The FY 2026–27 Proposed Budget includes funding for select Strategic Priority initiatives, estimated at approximately $4.0 million Citywide, reflecting projects that are feasible within current financial and organizational capacity. However, several additional priorities identified by the Council remain unfunded or partially funded due to resource limitations. As noted earlier, departments are managing these priorities alongside existing service demands, often General
Fund
CIP Funds Restricted
Funds
Infrastracture Programs $ - $ - $ 17,113,000
Housing Programs $ - $ - $ 17,852,000
Community Programs $ - $ - $ 2,867,000
Information Technology Reserve $ 3,853,000 $ - $ -
Vehicles Equipment Reserve $ 687,000 $ - $ -
Self Insurance Reserve $ 2,273,000 $ - $ -
Capital Projects - 15,789,000 -
Contigency reserve $ 12,025,328 $ -
Unassigned $ 17,881,000 $ - $ -

FUND TYPE
PROJECTED RESERVE AS OF JUNE 30, 2026
23 PUBLIC HEARING ITEM 7.1
by deferring other needs or absorbing additional workload.

Staff will continue to monitor progress on Strategic Priority initiatives and provide updates to the City Council through regular reporting and future budget discussions. As implementation progresses, additional resources—both one-time and ongoing—may be required to fully achieve the Council’s long-term priorities.
d. Personnel Changes
Given the ongoing structural deficit in the General Fund, the City is taking a cautious approach to staffing in FY 2026–27. While workload demands and service backlogs demonstrate a true need for additional staff, management has limited new position requests to confine ongoing personnel costs.

Staff recommends continuing four currently filled limited-term positions in FY 2026-27. These roles support critical services and help advance key Council priorities, without committing to long-term financial obligations. The combined cost of these four positions is $539,000, which is included in the proposed budget.

In addition, Community Services Division has requested to convert Recreation Coordinator’s position to Community Services Supervisor. The proposed reclassification reflects the expanded scope and complexity of community services, including increased programming, facility oversight, and coordination demands of providing services for youth, families, and seniors. The position has evolved beyond a coordinator-level role and now requires supervisory responsibility, program management, and strategic oversight to effectively support growing community needs and service delivery.

All personnel change requests will be discussed during the relevant department budget presentations. This will provide the City Council and the public an opportunity to ask questions and deliberate.

The table below outlines the City Manager’s staffing recommendations:
24 PUBLIC HEARING ITEM 7.1
e. Two-Year Capital Improvement Plan Update and Proposed Capital Budget As part of this action, the City Council is being asked to adopt the Fiscal Years 2026-27 and 2027-28 Capital Improvement Program (CIP) update, included as an attachment to this staff report, and approve the related FY 2026-27 Capital Budget. The two-year CIP provides a comprehensive summary of the City's planned capital projects, including both funded and unfunded projects, anticipated schedules, estimated costs, and potential funding sources.

While the CIP identifies projects planned for implementation over the next two fiscal years, not all projects included in the CIP are currently funded or appropriated. Some projects remain in the planning stage and will require future identification of funding sources, grant awards, or additional City Council action before they can proceed.

The FY 2026-27 Capital Budget represents the subset of CIP projects for which funding has been identified and appropriation authority is requested through this proposed budget. Approval of the Capital Budget authorizes expenditures for these projects during FY 2026-27 and going forward. Projects included in the adopted CIP that are not appropriated through this action remain part of the City's long-term capital planning program and may be considered for future funding as resources become available.

In addition, the City has numerous ongoing capital projects that were previously approved and appropriated by the City Council. These projects are not included in the table below because their remaining budgets will be carried forward through the FY 2026-27 mid-year budget process. Accordingly, the table below identifies only those projects for which new FY 2026-27 appropriations are requested as part of the proposed Capital Budget.

Title Division Note
Net
FTE
Funding
Source
Estimated
Annual Cost
Limited terms:

Management Analyst II Police Admin Continuation from the current deployment.

Staff seek for one more year extension

1.0 General $ 226,000
Management Analyst I Human
Resources
Continuation from the current deployment.

Staff seek for one more year extension

1.0 General 174,000
Human Resource Technician
I/II
Human
Resources
Continuation from the current deployment.

Staff Seek for one more year extension

1.0 General 139,000
Housing Specialist Housing/RSP Continuation from the current deployment.

Staff Seek for one more year extension 1.0
General (5%),
Housing (45%),
RSP (50%)
121,000
Sub-total limited term 4.0 $ 539,000
Promotion:

Recreation Coordinator to
Community Services Supervisor
Community
Services
Reflects expanded program scope,
increased operational demands, and need
for supervisory oversight to support growing
recreation services
N/A General 20,000
25 PUBLIC HEARING ITEM 7.1
.

Staff will return to the City Council for consideration of contractual approvals for these projects. It's worth noting that the costs associated to Local CIP fund are funded by the transfers from the General Fund previously authorized by the City Council.

Fiscal Impact
Establish the City’s revenue budget at $68,474,967 and appropriation budget at $82,871,517 including Capital Improvement Program budget, and the permanent staffing at 125.95 full time equivalents (FTEs). The City has a total citywide budget deficit of $14,396,554. As such, the PROJECT # DESCRIPTION TOTAL
Streets and Transportation Projects:

ST-07 Annual Street Resurfacing Project $2,300,000
ST-09 Bicycle & Pedestrian Improvements $500,000
ST-15 Signage and Striping Improvements $50,000
ST-33 Woodland Ave Street Improvements $700,000
ST-39 Fordham Street Roundabout $75,000
Sub-total Streets & Transportation $3,625,000
Storm Drain Project:

SD-04 Street Sweeping Signage $80,000
Sub-total Storm Drain $80,000
Community Facilities Projects:

FA-03 City Wide - EV Charging Station $580,000
Sub-total Storm Drain $580,000
Water Supply Project:

WS-01B Emergency Water Connects – Palo Alto Park Mutual $150,000 Sub-total Water Supply $150,000
Water Distribution Project:

WD-06 Fire Hydrant Replacement $230,000
Sub-total Water Distribution $230,000
Special Project:

N/A San Francisquito Creek Sediment Removal $800,000
Sub-total Special $800,000
Sewer Projects:

N/A EPASD 1.1 $1,000,000
N/A EPASD 1.2 $1,695,000
Sub-total Sewer $2,695,000
IT Projects:

N/A IT Strategic Plan Projects $1,158,000
Sub-total IT fund $1,158,000
TOTAL FY 2026-27 PROPOSED CIP FUNDING $9,318,000
Local CIP
General Fund IT Reserve

FUNDING SOURCE
Gas tax, Measure A, Measure W, Measure M
TDA grant
Gas tax
Measure A
TDA grant with local match
Local CIP
State grant
Sewer
Sewer
Water capital
Water capital 26
PUBLIC HEARING ITEM 7.1
City recognizes deficits in certain funds (Exhibit B of Resolution), which requires the use of available reserve balances totaling $26,183,040.

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 fiscal, governmental, or administrative activity that will not result in direct or indirect changes in the environment.

Adoption of the Fiscal Years 2026-27 and 2027-28 Capital Improvement Program (CIP) and approval of the related Fiscal Year 2026-27 Capital Budget likewise do not constitute a project under CEQA Guidelines section 15378(b)(4), because they are fiscal and planning activities that do not commit the City to any specific project that may cause a significant physical effect on the environment. On May 11, 2026, the Planning Commission separately found the CIP exempt from CEQA. The CIP and Capital Budget do not approve, authorize commencement of, or otherwise commit the City to construction of any individual capital project; appropriation of funds is for planning and budgeting purposes only. Each individual capital project will undergo project-specific environmental review under CEQA, and any required determination, exemption, or document will be completed, before the City Council or staff takes any discretionary action approving or committing the City to that project.

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. Fiscal Year 2026-27 Proposed Budget Booklet

4. Detail Budget Information by Division

5. Fiscal Years 2026-27 and 2027-28 Capital Improvement Program (CIP) Update 27 1 of 4
RESOLUTION NO. XX – 2026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO ADOPTING THE FISCAL YEAR 2026-27 BUDGET, FISCAL YEARS 2026-27 AND 2027-28 CAPITAL IMPROVEMENT PROGRAM (CIP), AND FISCAL YEAR 2026-27

CAPITAL 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 2026-27 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, on May 11, 2026, the Planning Commission considered the Fiscal Years 2026- 27 and 2027-28 Capital Improvement Program (CIP), including twenty-seven (27) new projects, found the CIP to be in conformance with the City of East Palo Alto 2035 General Plan, found that the action was exempt from review under the California Environmental Quality Act (CEQA), and directed staff to forward its report and recommendation regarding General Plan consistency to the City Council; and
WHEREAS, the City Council held budget hearing sessions on May 12, 2026, and May 19, 2026, at which the Fiscal Year 2026-27 Budget and the Fiscal Years 2026-27 and 2027-28 Capital Improvement Program (CIP) were presented and discussed, 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 2026-27 Budget and the Fiscal Years 2026-27 and 2027-28 Capital Improvement Program (CIP); 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 12, 2026, 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 Fiscal Year 2026-27 Budget (Exhibit A);

3. Authorizes the use of available Reserve Balances totaling $26,183,040 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. Adopts the Fiscal Years 2026-27 and 2027-28 Capital Improvement Program (CIP), and Fiscal Year 2026-27 Capital Budget; and;

5. Finds that the proposed action does not constitute a “project” with the meaning of the California 28 2 of 4
Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment. Furthermore, adoption of the Fiscal Years 2026-27 and 2027-28 Capital Improvement Program (CIP) and approval of the related Fiscal Year 2026-27 Capital Budget likewise do not constitute a project under CEQA Guidelines section 15378(b)(4), because they are fiscal and planning activities that do not commit the City to any specific project that may cause a significant physical effect on the environment. On May 11, 2026, the Planning Commission separately found the CIP exempt from CEQA. The CIP and Capital Budget do not approve, authorize commencement of, or otherwise commit the City to construction of any individual capital project; appropriation of funds is for planning and budgeting purposes only. Each individual capital project will undergo project-specific environmental review under CEQA, and any required determination, exemption, or document will be completed, before the City Council or staff takes any discretionary action approving or committing the City to that project.

PASSED AND ADOPTED this 16th day of June 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Webster Lincoln
Mayor
ATTEST:

James Colin
City Clerk
APPROVED AS TO FORM:

John D. Lê
City Attorney
29 3 of 4
Exhibit A
30 4 of 4
Exhibit B
31 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 2026–27 Budget for your review and consideration. This budget reflects the City's commitment to maintaining essential public services, investing in critical infrastructure, and advancing community priorities while navigating a challenging and uncertain fiscal environment.

Fiscal Environment
East Palo Alto has made significant progress in strengthening its financial position over the past several years. Through prudent fiscal management, strategic investments, and careful stewardship of public resources, the City has improved its financial stability while continuing to expand services and address long-standing community needs.

At the same time, significant fiscal challenges remain. Rising personnel, maintenance, insurance, and contractual service costs continue to outpace growth in traditional revenue sources. Demand for public safety, infrastructure improvements, housing initiatives, recreation programs, and other community services remains strong, placing continued pressure on limited discretionary resources.

One of the most significant challenges facing East Palo Alto and other jurisdictions throughout San Mateo County is the ongoing Property Tax in Lieu of Vehicle License Fee (VLF) funding shortfall. For decades, the State has provided replacement revenues to local governments in lieu of Vehicle License Fee revenues. However, San Mateo County jurisdictions have not received the full amount to which they are entitled under the State's funding formula. In Fiscal Year 2024–25 alone, the countywide shortfall totaled approximately $119 million, and the State continues to withhold more than $100 million annually from San Mateo County cities and the County itself.

For East Palo Alto, the impact is particularly significant. The City faces an estimated $2.6 million reduction in the VLF-related revenues in Fiscal Year 2026–27. This amount represents roughly seven percent of General Fund revenues and significantly affects the City's ability to fund essential services, community programs, and neighborhood investments.

The Proposed Budget reflects these realities. Citywide revenues are projected at approximately $68.5 million, while expenditures are projected at approximately $82.9 million. The difference is CM-1
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largely attributable to planned capital investments, expenditures funded through restricted revenue sources, and implementation of previously authorized Council priorities. While the City maintains reserves and fund balances that allow us to continue advancing important projects and maintaining service levels, reliance on one-time resources is not a sustainable long-term strategy.

As we look ahead, fiscal discipline, thoughtful prioritization, and strategic decision-making will remain essential. The City must continue balancing current service demands with long-term financial sustainability while positioning itself to take advantage of future opportunities.

Investing in Community Priorities
Despite these challenges, the Proposed Budget continues to invest in the City Council’s Strategic Priorities as well as priorities identified by residents through EPA Talks and other community engagement efforts. The budget includes funding for projects and services that improve quality of life, strengthen community resilience, and address critical infrastructure needs.

These investments include replacing aging infrastructure to ensure safe, clean, and reliable drinking water; improving storm drainage systems; expanding recreation opportunities for youth and families; enhancing emergency preparedness capabilities; and maintaining essential public facilities.

The budget also funds major projects that residents have consistently identified as priorities, including the development of an Emergency Operations Center to coordinate disaster response and community facilities that can serve as places of refuge during periods of extreme heat, cold, poor air quality, or other emergencies.

Community feedback has further emphasized the importance of investing in streets, parks, utilities, public safety facilities, and the development of modern civic and library facilities.

Residents have repeatedly expressed the need for safe gathering spaces and recreational opportunities for children, teens, families, and seniors. These investments are intended to expand access to community amenities and support programs that serve residents of all ages.

The Proposed Budget also continues advancing the City's long-term vision for a Civic Center.

Since incorporation, East Palo Alto has never owned its City Hall, police station, or library.

Municipal operations have historically been dispersed across multiple leased facilities, limiting operational efficiency and increasing long-term costs.

By funding key components of the future Civic Center, this budget advances East Palo Alto's pursuit of greater self-determination and supports the City's broader economic development strategy. The proposed Civic Center would consolidate essential public services in a central location, including City Hall, a modern library, community gathering spaces, parkland, and emergency operations functions. As the City's downtown emerges, these investments have the CM-2
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potential to strengthen civic identity, improve service delivery, and create a lasting public asset for future generations.

Together, these investments address aging infrastructure, support effective service delivery, expand community amenities, and maintain facilities that serve residents both today and in the future. The budget seeks to balance ongoing operational needs with long-term capital investments that advance the City's strategic goals and community priorities.

East Palo Alto Sanitary District
The East Palo Alto Sanitary District (EPASD) continues to operate as a subsidiary district of the City and is presented within the budget as a separate enterprise fund. This structure promotes transparency, accountability, and sound financial management while ensuring the continued delivery of essential wastewater services.

The proposed EPASD budget includes investments necessary to maintain critical infrastructure, comply with regulatory requirements, and provide reliable, high-quality wastewater service to customers. These investments help preserve public health, protect the environment, and support the long-term sustainability of the District's operations.

Looking Ahead
The Fiscal Year 2026–27 Proposed Budget reflects a balanced approach that acknowledges current fiscal realities while continuing to move East Palo Alto forward. It recognizes both the challenges we face and the opportunities before us. While financial pressures remain significant, the City is well-positioned to continue delivering essential services, advancing strategic priorities, and investing in the future of the community.

Staff will continue to closely monitor revenues, expenditures, economic conditions, and developments related to VLF funding and other state and federal funding sources. As conditions evolve, recommendations will be brought forward to protect the City's long-term fiscal sustainability and ensure responsible stewardship of public resources.

I would like to thank the Finance Department, department directors, and City staff for their dedication and hard work in preparing this budget. I also extend my appreciation to the residents of East Palo Alto for their continued engagement and participation, and to the City Council for your leadership, partnership, and commitment to serving our community.

Respectfully submitted,
Melvin E. Gaines,
City Manager
City of East Palo Alto
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37 i
FY 2026-2027 Budget Mayor
Webster Lincoln
Vice Mayor
Ruben Abrica
Council Members
Carlos Romero Mark Dinan Martha Barragan

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.
38 This Page Intentionally Left Blank
ii
39 iii
Executive Staff
Executive Staff
Melvin Gaines, City Manager
City Manager’s Office
Shiri Klima, Assistant 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
Community Development Director — Vacant
Community and Economic Development
Humza Javed, Public Works Director
Public Works
Jeff Liu, Police Chief
Police Department
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iv
41 Elected Officials…………………………………………………………i
Executive Staff………………………………..…………………………iii
Table of Contents………………………………….……………………v
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- 3 Detail Position Listing…………………………………...…………..OS- 5
East Palo Alto at a Glance…………………………………...………OS- 7
Financial Summary
FY 2026-2027 Budget……………………………..……………….. FS- 1
General Fund Revenues by Major Category……………...…………FS- 21 General Fund Expenditures by Major Category……………...………FS- 23 Departmental Budgets
City Council…………………..…….….……………………..……… DB- 1
City Attorney's Office……….…….….......…...……………….………DB- 5 City Clerk's Office……..........…....…................................................. DB- 13 City Manager's Office……..........…....…........................................... DB- 19 City Manager's Office………………………..…………………… DB- 23
Human Resources…………….…………………………….………DB- 29
Community Services and Recreation…………….…………………DB- 35
Information Technology…………….……………………………. DB- 39
Finance Department……………………..………..…………..………DB- 43
Community and Economic Development …………………..………DB- 49
Administration………...……………………………………………DB- 53
Building Services……...………………….…………………………DB- 55
Housing and Economic Development……………..…...……..……DB- 59 Planning…….…………………..……………………..………..… DB- 71
Public Works…………………………..…………………………....…DB- 79
Administration….……………………………....………………… DB- 83
Engineering……………………………….....…………………...…DB- 93
Maintenance……………………………….....……………………DB- 99
Utilities……………………………….....……………………...… DB- 107
Police Department …………………………..……………………… DB- 111
Administration………………………………………………………DB- 117
Investigations………………………………………………………DB- 121
Operations………………………………………………………… DB- 125
Non Departmental…………………………………………………… DB- 129
Miscellaneous……………………………………………………...……MISC- 1
Glossary………………...………...………………….…………………GLOS- 1
Table of Contents
v
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43 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 2026–27 Budget for your review and consideration. This budget reflects the City's commitment to maintaining essential public services, investing in critical infrastructure, and advancing community priorities while navigating a challenging and uncertain fiscal environment.

Page 2 ends

Community feedback has further emphasized the importance of investing in streets, parks, utilities, public safety facilities, and the development of modern civic and library facilities.

The Proposed Budget also continues advancing the City's long-term vision for a Civic Center.

Since incorporation, East Palo Alto has never owned its City Hall, police station, or library.

Municipal operations have historically been dispersed across multiple leased facilities, limiting operational efficiency and increasing long-term costs.

Page 3 ends

potential to strengthen civic identity, improve service delivery, and create a lasting public asset for future generations.

Respectfully submitted,
Melvin E. Gaines,
City Manager
City of East Palo Alto
CM-3
46 This Page Intentionally Left Blank
CM-4
47 How to Use the
Budget Document
The East Palo Alto Budget Document serves as the City’s financial plan for allocating available fiscal, human, and capital resources. These resources support the delivery of services designed to meet the needs of East Palo Alto residents.

Through the planning and budgeting process, the City Council and City staff identify and address community priorities and service needs. The result is a comprehensive budget document that reflects both the City’s financial resources and the priorities of the community. The budget balances projected revenues and expenditures while supporting the programs, services, and initiatives most important to residents.

The Budget Document is organized 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 broad overview of the fiscal budget period and establishes the context for budget decisions by highlighting the community and economic conditions affecting the City.

It also outlines major initiatives currently underway and identifies key challenges facing the organization.

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 establishes the organization’s goals and priorities. It provides policy direction for initiatives to be pursued over a two-year period and guides the work plans and budgets of departments responsible for implementing those initiatives, subject to available resources.

Organizational Summary Information
This section of the document provides reference information about the City and its organization, including the organizational chart, a nine-year summary of authorized staffing levels, “East Palo Alto at a Glance,” and demographic statistics for the City of East Palo Alto.

BD-1
48 Financial Summary Information
This section presents the FY 2026–27 Budget by fund
and fund group type, including descriptions of the
purpose and function of each budgeted fund, as well as
projected fund balance information. • 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 presents the operating budget for all City departments and divisions, including 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 provides financial
information by major revenue and expenditure
categories. Definitions of the four primary expenditure categories are included in the Glossary.

Local government budgets are organized by fund to
ensure restricted resources are properly segregated and accounted for, with each fund functioning as a separate accounting entity. The General Fund serves as the City’s primary operating fund and supports essential services
provided to the community, including public safety,
maintenance, and general government operations.

This section also includes historical trends in revenues and expenditures, as well as General Fund sources and
uses. In addition, historical and current staffing
information for each department and division is
provided, along with departmental organizational charts.

Miscellaneous
This section includes information on major capital
project funding, detailed Measure P funding allocations, the FY 2026–27 Appropriations Limit calculation, and
the budget adoption resolutions.

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

BD-2
49 FY 2025-2029 Strategic
Priorities and
FY 2025-2027 Work Plan
City of East
Palo Alto
Strategic Plan

ADOPTED
June 17, 2025
SP-1
50 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
51 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.

This document outlines the City Council’s Strategic
Priorities for Fiscal Years (FY) 2025–2029 and includes a detailed Work Plan for FY 2025–2026 and 2026–
2027. A second two-year work plan will be created
later to cover the final years. The priorities and
projects in this Plan are grounded in community
feedback, budget considerations, and direction from
the City Council.

SP-3
52 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.

Terms and Definitions:
• Strategic Plan: A guiding document that sets
the City’s long-term goals and the strategies to
achieve them. Typically covers a 2–5 year
timeframe.
• Strategic Priorities: Long-term focus areas
established by the City Council to guide
decision-making over the next four years.
• Work Plan: A two-year list of projects and
initiatives—beyond routine operations—
intended to advance the Strategic Priorities.
• Projects: Specific efforts or actions the City
takes to carry out the Strategic Priorities.
• Metrics: Measurements used to track the status
and impact of projects and priorities, including
timelines and key performance indicators.

SP-4
53 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
54 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
55 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. The remaining 37 projects will carry
forward into the FY 2025–2027 Work Plan.

Table 1—EPA Strategic Priorities (FY 2023-2025)
SP-7
56 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 prevent 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
57 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
58 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
59 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
60 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
61 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
62 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
63 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
64 ADOPTED
June 17, 2025

PREPARED BY
SP-16
65 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 prevent 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
66 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
67 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.
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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
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LAND USE, ECONOMIC AND WORKFORCE DEVELOPMENT
Continues on following page;
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68 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.
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PARKS, RECREATION, AND COMMUNITY FACILITIES
Q1 Q2 Q3
FY 25–26 FY 26–27
Q4 Q1 Q2 Q3 Q4
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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
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6 MO
18 MO
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69 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
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PUBLIC HEALTH, SAFETY, AND QUALITY OF LIFE
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70 PUBLIC INFRASTRUCTURE AND UTILITIES
Q1 Q2 Q3
FY 25–26 FY 26–27
Q4 Q1 Q2 Q3 Q4
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ON HOLD
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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.

Continues on following page;
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71 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
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73 CITY OF EAST PALO ALTO

CITY ORGANIZATIONAL CHART
FY 2026-2027 Budget
DB-67

RESIDENTS OF EAST PALO ALTO

CITY COUNCIL

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

FINANCE
POLICE
Administration
Operations
Investigations

PUBLIC WORKS
Administration
Engineering/Sanitary District
Maintenance

COMMUNITY & ECONOMIC

DEVELOPMENT
Administration
Building
Planning
Housing & Rent Stabilization/
Econ Development

CITY CLERK OFFICE
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75 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24* FY 24-25* FY 25-26* FY 26-27* 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 2.00 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 4.00 4.00 5.00 6.00 7.00 7.00 City Manager - Human Resources - - 2.00 2.00 2.00 2.00 2.00 4.00 4.00 City Manager - Rent Stabilization - - - - - - - - -
City Manager - Community Programs - - - - - - 5.70 5.70 5.70 Sub-Total 12.00 12.00 14.00 15.00 15.00 17.00 23.70 26.70 26.70 Administrative Support Services
Finance Department 6.00 7.00 7.00 6.00 7.00 7.00 7.00 8.00 8.00 Administrative Services Admin 3.00 3.00 3.00 3.00 2.00 - - - - Community Services Division 4.15 4.15 3.65 5.15 5.15 5.15 - - - Human Resources 2.00 2.00 - - - - - - -
Sub-Total 15.15 16.15 13.65 14.15 14.15 12.15 7.00 8.00 8.00 Community and Economic Development
Administration Division 6.45 6.45 3.50 4.00 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 5.00 5.00 5.00 5.00 5.00 Housing/Economic Division 3.00 3.00 3.00 4.00 4.00 4.00 4.00 5.00 5.00 Senior Services Division - - - - - - - - -
Sub-Total 20.45 20.45 17.50 19.00 20.00 20.00 20.00 21.00 21.00 Public Safety
Administration Division 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 Investigations Division 8.25 11.15 11.15 11.15 12.25 11.25 6.45 6.00 6.00 Operations Division 29.00 27.00 28.00 28.00 29.35 30.35 34.80 34.80 34.80 Sub-Total 46.25 47.15 48.15 48.15 50.60 50.60 50.25 49.80 49.80 Public Works
Administration Division 2.00 2.00 4.50 4.45 4.45 4.45 4.45 4.45 4.45 Engineering Division 5.00 5.00 3.75 5.00 5.00 5.25 6.00 7.00 7.46 Maintenance Division 12.00 12.00 12.00 12.00 12.00 12.00 12.00 13.00 13.00 Sub-Total 19.00 19.00 20.25 21.45 21.45 21.70 22.45 24.45 24.91 TOTAL POSITIONS 112.85 114.75 113.55 117.75 121.20 121.45 123.40 129.95 130.41 *Beginning with FY 2023–24, Position Summary includes limited-term positions.

CITY OF EAST PALO ALTO

NINE-YEAR POSITION SUMMARY
FY 2018-19 to FY 2026-27
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77 FY 2026-27 FY 2026-27
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 Counsel 1.00 c. Assistant/Associate Planner 2.00 b. Deputy City Attorney I/II 1.00 d. Planning Technician 1.00 c. Paralegal 1.00 5.00

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

7.00 b. Utility Manager 1.00
Human Resources Division c. Senior Engineer 1.00
a. Human Resources Manager 1.00 d. Assistant/Associate Engineer 2.00 b. Human Resources Technician I/II 1.00 e. Public Works Supervisor 1.00 c. Management Analyst I/II Ltd2 1.00 f Administrative Assistant 1.00 d. Human Resources Technician I/II Ltd2 1.00 g. Special Project Manager Ltd2 0.46

4.00 7.46
Community Services Division Maintenance Division
a. Community Services Manager 1.00 a. Maintenance Manager 1.00 b. Community Services Supervisor1 1.00 b. Maintenance Worker I 4.00 c. Recreation Leader II (1 FTE, 1 PT) 1.45 c. Maintenance Worker II 5.00 d. Van Driver (2 PT) 1.00 d. Maintenance Worker III 2.00 e. Nutrition Site Supervisor (1 PT) 0.75 e. Secretary I 1.00 f. Kitchen Aide (1 PT) 0.50 13.00

5.70 Police
City Clerk's Office Administration Division
a. City Clerk - Public Information Officer (PIO) 1.00 a. Police Chief 1.00 b. Assistant City Clerk1 1.00 b. Support Services Manager 1.00

2.00 c. Police Records Supervisor 1.00
d. Police Record's Clerk I/II 4.00
Finance e. Property & Evidence Technician 1.00
a. Finance Director/District Treasurer 1.00 f. Management Analyst II Ltd2 1.00 b. Financial Services Manager 1.00 9.00
c. Accountant Senior 2.00 Investigations Division
d. Accountant I 1.00 a. Captain 1.00
e. Accounting Technician I/II 1.00 b. Police Officer 4.00 f. Grant Coordinator 1.00 c. Police Sergeant 1.00
g. Senior Accounting Technician 1.00 6.00

8.00 Operations Division
Community and Economic Development a. Captain 1.00
Administration Division b. Police Sergeant 4.00
a. Community & Economic Dev Director 1.00 c. Police Officer 24.00 b. Management Analyst I/II 1.00 d. Community Services Officer 4.00 c. Secretary I/II 1.00 e. Community Services Officer (4 PT) 1.80 d. Office Assistant 1.00 34.80

4.00 Building Services Division
a. Chief Building Official 1.00
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 Total Authorized FTE's 130.41 c. Housing Specialist I Ltd2 1.00
d. RSP Administrator 1.00
e. RSP Coordinator I/II 1.00

5.00 2
Limited term employees.

CITY OF EAST PALO ALTO
Detail Position Listing
Public Works
1 Position title change.

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79 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-7
80 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 29,133.

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: Webster Lincoln Nov. 2028
Vice Mayor: Ruben Abrica Nov. 2026
Council Member: Martha Barragan Nov. 2026
Council Member: Mark Dinan Nov. 2028
Council Member: Carlos Romero 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-8
81 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 29,296
Population by Gender i
Female 52.1%
Male 47.9%
Population by Age Group i
Under 5 years 5.8%
5 to 9 years 4.6%
10 to 14 years 5.5%
15 to 19 years 7.6%
20 to 24 years 7.7%
25 to 29 years 9.3%
30 to 34 years 8.2%
35 to 39 years 6.4%
40 to 44 years 9.0%
45 to 49 years 5.7%
50 to 54 years 5.6%
55 to 59 years 7.1%
60 to 64 years 7.1%
65 to 69 years 3.6%
70 to 74 years 2.4%
75 to 79 years 2.2%
80 to 84 years 1.8%
85 years and over 0.4%
Racial Composition i
Hispanic or Latino 58.8%
Black or African Amer 9.5%
White 12.6%
Asian 7.1%
Pacific Islander 7.8%
Two or More 18.1%
Other 2.8%
i https://www.census.gov/
Level of Educational Attainment of Persons 25 years
and older i
No High School degree 24.2%
High School degree or equivalent 23.1%
Some college, no degree 19.9%
Associate’s degree, Bachelor’s degree 21.9%
Post-grad degree 10.9%
Per Capita Personal Income i
$42,301
Median Sales Price for Single Family Residencesii
($1,980,000 in 2025)
ii San Mateo County Associations of Realtors
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85 FINANCIAL SUMMARY
FY 2026-2027 Budget
The Financial Summary section contains the following adopted budget and financial summary information:

Budget Information:
• Citywide Budget Overview
o Budget by Fund Category
• General Fund Overview
o General Fund and Internal Reserve Funds Budget
• Special Revenue Funds Overview
o Special Revenue Funds Budget
o Community Programs Budget
o Housing Programs Budget
o Transportation and Infrastructure Programs Budget
• Capital Funds Overview
o Capital Funds Budget
• Enterprise Funds Overview
o Enterprise Funds Budget
Other Financial Information:
• General Fund Revenues by Major Category
• General Fund Expenditures by Major Category
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87 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
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88 General Fund and
Internal Reserves
Special
Revenue
Funds
Capital
Improvement
Funds
Enterprise Funds City Total Successor
Trust Fund GRAND TOTAL
Revenues
Property Tax 17,006,190 1,091,236 - 1,609,934 19,707,361 3,528,516 23,235,877 Sales Tax 5,827,100 - - - 5,827,100 - 5,827,100
Transient Occupancy Tax 2,200,000 550,000 - - 2,750,000 - 2,750,000 Business License Tax 830,000 1,620,690 - - 2,450,690 - 2,450,690 Utility User Tax 2,160,558 - - - 2,160,558 - 2,160,558
Other Taxes 140,000 3,402,554 - - 3,542,554 - 3,542,554 Licenses, Fees, and Permits 1,725,334 1,502,715 2,771,335 3,745,266 9,744,650 - 9,744,650 Charges for Services 2,206,280 142,600 - 10,021,571 12,370,451 - 12,370,451 Fines and Forfeitures 632,500 - - - 632,500 - 632,500
Use of Money and Property 1,941,764 1,415,764 791,556 1,679,787 5,828,871 58,248 5,887,119 Grants and Intergovernmental 65,000 1,248,100 1,230,000 - 2,543,100 - 2,543,100 Other Miscellaneous 613,800 - - 303,333 917,133 - 917,133 Total Revenues 35,348,525 10,973,659 4,792,892 17,359,891 68,474,967 3,586,764 72,061,731 Expenditures
City Council 261,352 - - 7,500 268,852 - 268,852
City Attorney 1,617,805 10,700 - 50,600 1,679,105 1,400 1,680,505 City Clerk 667,379 - - - 667,379 - 667,379
City Manager 5,350,822 1,290,000 - - 6,640,822 - 6,640,822 Finance 1,928,635 8,488 72,832 73,500 2,083,455 30,374 2,113,830 Community Development 3,544,234 18,724,499 - - 22,268,732 - 22,268,732 Public Works 6,760,504 2,191,071 170,459 6,209,892 15,331,926 - 15,331,926 Police 17,583,877 200,000 - - 17,783,877 - 17,783,877
Non-Departmental
Capital/Technology 1,158,000 2,800,000 2,285,000 3,075,000 9,318,000 - 9,318,000 Debt Service - - - - - - -
Insurance and Settlements 1,123,373 - - - 1,123,373 - 1,123,373 IT Operations 495,864 - 15,040 510,904 - 510,904
Other Non-Departmental 1,463,932 112,561 - 3,627,640 5,204,133 5,027,985 10,232,118 Overhead Allocation (2,860,620) 925,618 198,832 1,727,128 (9,042) 9,041 - Total Expenditures 39,095,159 26,262,936 2,727,123 14,786,300 82,871,517 5,068,801 87,940,319 Net Sources / (Uses) (3,746,633) (15,289,277) 2,065,769 2,573,591 (14,396,550) (1,482,037) (15,878,587) Other Financing Sources / (Uses)
Transfers In - 989,268 - - 989,268 - 989,268
Transfers Out (989,268) - - - (989,268) - (989,268)
Net Operating Transfers (989,268) 989,268 - - - - -
Change in Fund Balance (4,735,901) (14,300,009) 2,065,769 2,573,591 (14,396,550) (1,482,037) (15,878,587) Other Changes - - - - - - -
Projected Fund Balance
July 01, 2026 Balance* 17,881,000 37,832,000 17,639,000 37,225,000 110,577,000 (13,944,032) 96,632,968 June 30, 2027 Balance 14,303,099 23,531,991 19,704,769 39,798,591 96,180,450 (15,426,069) 80,754,381 *Excludes certain assets, reserves, and commitments.

CITY OF EAST PALO ALTO
FY 2026-2027 BUDGET BY FUND CATEGORY
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89 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, 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-5
90 General Fund
F110
Info Services
Reserve
F111
Equipment and
Vehicle Reserve
F112
Insurance
Reserve
F113
Development
Pass Through
F117
Eliminating Total
Revenues
Property Tax 17,006,190 - - - - - 17,006,190
Sales Tax 5,827,100 - - - - - 5,827,100
Transient Occupancy Tax 2,200,000 - - - - - 2,200,000
Business License Tax 830,000 - - - - - 830,000
Utility User Tax 2,160,558 - - - - - 2,160,558
Other Taxes 140,000 - - - - - 140,000
Licenses, Fees, and Permits 1,725,334 - - - - - 1,725,334 Charges for Services 2,206,280 - - - - - 2,206,280
Fines and Forfeitures 632,500 - - - - - 632,500
Use of Money and Property 1,941,764 - - - - - 1,941,764 Grants and Intergovernmental 65,000 - - - - - 65,000
Other Miscellaneous - - - - 613,800 - 613,800
Total Revenues 34,734,725 - - - 613,800 - 35,348,525
Expenditures
City Council 253,852 7,500 - - - - 261,352
City Attorney 1,412,805 - - 125,000 80,000 - 1,617,805
City Clerk 552,701 114,678 - - - - 667,379
City Manager 4,915,078 435,744 - - - - 5,350,822
Finance 1,854,021 74,614 - - - - 1,928,635
Community Development 3,019,318 54,916 - - 470,000 - 3,544,234 Public Works 6,342,101 68,403 350,000 - - - 6,760,504
Police 17,081,633 302,244 200,000 - - - 17,583,877
Non-Departmental
Major Capital/Technology - 1,158,000 - - - - 1,158,000
Insurance and Settlements - - - 1,123,373 - - 1,123,373 IT Operations - 495,864 - - - - 495,864
Other Non-Departmental 1,463,932 - - - - - 1,463,932
Overhead Allocation (2,356,166) (327,897) - (176,557) - - (2,860,620) Total Expenditures 34,539,277 2,384,066 550,000 1,071,816 550,000 - 39,095,159 Net Sources / (Uses) 195,449 (2,384,066) (550,000) (1,071,816) 63,800 - (3,746,633) Other Financing Sources / (Uses)
Transfers In - 1,226,066 550,000 1,071,816 - (2,847,882) - Transfers Out (3,837,150) - - - - 2,847,882 (989,268)
Net Operating Transfers (3,837,150) 1,226,066 550,000 1,071,816 - - (989,268) Change in Fund Balance (3,641,701) (1,158,000) - - 63,800 - (4,735,901) Other Changes 63,800 - - - (63,800) - -
Projected Fund Balance
July 01, 2026 Balance* 17,881,000 3,853,000 687,000 2,273,000 - (6,813,000) 17,881,000 June 30, 2027 Balance 14,303,099 2,695,000 687,000 2,273,000 - (6,813,000) 14,303,099 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 GENERAL FUND BUDGET
FS-6
91 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.

FS-7
92 SPECIAL REVENUE FUNDS OVERVIEW
Housing TOT
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.

FS-8
93 SPECIAL REVENUE FUNDS OVERVIEW
NPDES
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-9
94 Community
Programs
Housing
Programs
Transportation and
Infrastructure
Programs
Total
Revenues
Property Tax - - 1,091,236 1,091,236
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 1,725,554 3,402,554
Licenses, Fees, and Permits - 1,502,715 - 1,502,715
Charges for Services - 2,600 140,000 142,600
Fines and Forfeitures - - - -
Use of Money and Property 89,424 669,960 656,379 1,415,764 Grants and Intergovernmental 138,100 - 1,110,000 1,248,100 Other Miscellaneous - - - -
Total Revenues 502,524 5,747,965 4,723,170 10,973,659
Expenditures
City Council - - - -
City Attorney - 10,700 - 10,700
City Clerk - - - -
City Manager 1,290,000 - - 1,290,000
Finance - 2,496 5,992 8,488
Community Development 49,044 18,675,455 - 18,724,499
Public Works 123,563 - 2,067,508 2,191,071
Police 200,000 - - 200,000
Non-Departmental - - - -
Capital/Technology - - 2,800,000 2,800,000
Insurance and Settlements - - - -
IT Operations - - - -
Other Non-Departmental - 14 112,547 112,561
Overhead Allocation 9,236 381,785 534,597 925,618
Total Expenditures 1,671,843 19,070,449 5,520,643 26,262,936 Net Sources / (Uses) (1,169,319) (13,322,484) (797,474) (15,289,277) Other Financing Sources / (Uses)
Transfers In - - 989,268 989,268
Transfers Out - - - -
Net Operating Transfers - - 989,268 989,268
Change in Fund Balance (1,169,319) (13,322,484) 191,794 (14,300,009) Other Changes - - - -
Projected Fund Balance
July 01, 2026 Balance* 2,867,000 17,852,000 17,113,000 37,832,000 June 30, 2027 Balance 1,697,681 4,529,516 17,304,794 23,531,991 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 SPECIAL REVENUE FUNDS BUDGET
FS-10
95 Public Safety
Grants
F213
Federal and
State Grants
F215
Local
Grants
F230
CYSFF
TOT
F231
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 14,526 8,949 23,779 42,170 89,424 Grants and Intergovernmental 100,000 38,100 - - 138,100 Other Miscellaneous - - - - -
Total Revenues 114,526 47,049 23,779 317,170 502,524
Expenditures
City Council - - - - -
City Attorney - - - - -
City Clerk - - - - -
City Manager - - 590,000 700,000 1,290,000
Finance - - - - -
Community Development - - 49,044 - 49,044
Public Works - - 123,563 - 123,563
Police 200,000 - - - 200,000
Non-Departmental - - -
Capital/Technology - - - - -
Insurance and Settlements - - - - -
IT Operations - - - - -
Other Non-Departmental - - - - -
Overhead Allocation - - - 9,236 9,236
Total Expenditures 200,000 - 762,607 709,236 1,671,843
Net Sources / (Uses) (85,474) 47,049 (738,828) (392,066) (1,169,319) Other Financing Sources / (Uses)
Transfers In - - - - -
Transfers Out - - - - -
Net Operating Transfers - - - - -
Change in Fund Balance (85,474) 47,049 (738,828) (392,066) (1,169,319) Other Changes - - - - -
Projected Fund Balance
July 01, 2026 Balance* 674,000 1,423,000 47,000 723,000 2,867,000 June 30, 2027 Balance 588,526 1,470,049 (691,828) 330,934 1,697,681 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 COMMUNITY PROGRAMS BUDGET
FS-11
96 This Page Intentionally Left Blank
FS-12
97 Rent
Stabilization
F204
Inclusionary
Housing
F205
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 852,390 650,325 - - - - - - - - 1,502,715 Charges for Services 2,600 - - - - - - - - - 2,600
Fines and Forfeitures - - - - - - - - - - -
Use of Money and Property 17,352 - 311,233 12,870 - 68,208 209,093 48,235 2,970 - 669,960 Grants and Intergovernmental - - - - - - - - - - -
Other Miscellaneous - - - - - - - - - - -
Total Revenues 872,342 650,325 311,233 12,870 - 343,208 1,886,093 48,235 2,970 1,620,690 5,747,965 Expenditures
City Council - - - - - - - - - - -
City Attorney - - - - - - - 10,700 - - 10,700
City Clerk - - - - - - - - - - -
City Manager - - - - - - - - - - -
Finance - - - - - - 2,496 - - - 2,496
Community Development 649,097 12,200 6,130,275 6,480 - 1,868,775 8,369,847 129,742 - 1,509,039 18,675,455 Public Works - - - - - - - - - - -
Police - - - - - - - - - - -
Non-Departmental
Capital/Technology - - - - - - - - - - -
Insurance and Settlements - - - - - - - - - - -
IT Operations - - - - - - - - - - -
Other Non-Departmental - - - - - - 14 - - - 14
Overhead Allocation 354,148 - 10,728 9,206 - 7,704 - - - - 381,785 Total Expenditures 1,003,245 12,200 6,141,002 15,686 - 1,876,479 8,372,357 140,442 - 1,509,039 19,070,449 Net Sources / (Uses) (130,903) 638,125 (5,829,770) (2,816) - (1,533,271) (6,486,264) (92,207) 2,970 111,651 (13,322,484) Other Financing Sources / (Uses)
Transfers In - - - - - - - - - - -
Transfers Out - - - - - - - - - - -
Net Operating Transfers - - - - - - - - - -
Change in Fund Balance (130,903) 638,125 (5,829,770) (2,816) - (1,533,271) (6,486,264) (92,207) 2,970 111,651 (13,322,484) Other Changes - - - - - - - - - - -
Projected Fund Balance
July 01, 2026 Balance* 306,000 - 5,409,000 401,000 (42,000) 2,642,000 8,273,000 514,000 135,000 214,000 17,852,000 June 30, 2027 Balance 175,097 638,125 (420,770) 398,184 (42,000) 1,108,729 1,786,736 421,793 137,970 325,651 4,529,516 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 HOUSING PROGRAMS BUDGET
FS-13
98 This Page Intentionally Left Blank
FS-14
99 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 - - - - 919,058 172,179 - 1,091,236
Sales Tax - - - - - - - -
Transient Occupancy Tax - - - - - - - -
Business License Tax - - - - - - - -
Utility User Tax - - - - - - - -
Other Taxes 1,725,554 - - - - - - 1,725,554
Licenses, Fees, and Permits - - - - - - - -
Charges for Services - - 140,000 - - - - 140,000
Fines and Forfeitures - - - - - - - -
Use of Money and Property 147,084 207,015 13,854 12,104 199,851 38,197 38,273 656,379 Grants and Intergovernmental - 770,000 - - - - 340,000 1,110,000 Other Miscellaneous - - - - - - - -
Total Revenues 1,872,638 977,015 153,854 12,104 1,118,909 210,376 378,273 4,723,170 Expenditures
City Council - - - - - - - -
City Attorney - - - - - - - -
City Clerk - - - - - - - -
City Manager - - - - - - - -
Finance - 1,846 2,300 - - - 1,846 5,992
Community Development - - - - - - - -
Public Works 789,176 - 816,509 - 236,154 225,668 - 2,067,508 Police - - - - - - - -
Non-Departmental
Capital/Technology 2,000,000 550,000 - - - - 250,000 2,800,000 Insurance and Settlements - - - - - - - -
IT Operations - - - - - - - -
Other Non-Departmental 94,272 - 10,461 - 6,098 1,716 - 112,547 Overhead Allocation 171,356 54,574 164,981 1,107 55,942 67,363 19,274 534,597 Total Expenditures 3,054,804 606,420 994,251 1,107 298,194 294,747 271,120 5,520,643 Net Sources / (Uses) (1,182,166) 370,594 (840,397) 10,997 820,715 (84,371) 107,153 (797,474) Other Financing Sources / (Uses)
Transfers In 64,500 - 840,397 - - 84,371 - 989,268
Transfers Out - - - - - - - -
Net Operating Transfers 64,500 - 840,397 - - 84,371 - 989,268 Change in Fund Balance (1,117,666) 370,594 - 10,997 820,715 - 107,153 191,794 Other Changes - - - - - - - -
Projected Fund Balance
July 01, 2026 Balance* 4,253,000 5,533,000 95,000 395,000 3,707,000 1,235,000 1,895,000 17,113,000 June 30, 2027 Balance 3,135,334 5,903,594 95,000 405,997 4,527,715 1,235,000 2,002,153 17,304,794 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 INFRASTRUCTURE PROGRAMS BUDGET
FS-15
100
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FS-16
101

CAPITAL FUNDS OVERVIEW
Capital Funds account for major capital acquisitions, construction activities, and significant renovation or replacement of general government assets. Capital improvement projects within these funds are primarily financed through General Fund transfers, federal and state grants, restricted capital-related settlements, and developer impact fees collected to offset the effects of new development on the City’s infrastructure systems.

Capital Improvement
The Capital Improvement Fund supports the planning, design, construction, and management of the City’s major infrastructure improvements, including streets, sidewalks, parks, facilities, and storm drainage systems. Capital projects related to the City’s water infrastructure are accounted for separately within the Water Enterprise Fund.

Parks and Trails Impact
The Park and Trails Impact Fund accounts for developer fees collected to mitigate the impacts of new development on the City’s parks, trails, and open space infrastructure. These funds are used to support park improvements and land acquisitions that help maintain adequate and high-quality open space amenities, enhancing public health and quality of life for residents and the workforce.

Public Facilities Impact
The Park and Trails Impact Fund accounts for developer fees collected to mitigate the impacts of new development on the provision of essential public facilities. These facilities include police services, educational amenities such as libraries, governance buildings, and community service centers needed to support the City’s growing population and workforce.

Transportation Infrastructure Impact
The Park and Trails Impact Fund accounts for developer fees collected to mitigate the impacts of new development on the City’s transportation infrastructure, including public roads and multi-modal streetscape facilities. These funds support the construction of sidewalks and related improvements such as street trees, lighting, benches, and street furniture, which enhance pedestrian safety, accessibility, aesthetics, and opportunities for active transportation.

RBD-I Impact
The RBD-I Impact Fund accounts for developer fees collected to mitigate the impacts of new development on storm drainage infrastructure within the Ravenswood Business District. These funds support improvements necessary to provide adequate drainage capacity and reduce the risk of flooding in the area.

RBD-O Impact
The RBD-O Impact Fund accounts for developer fees collected to mitigate the impacts of new development on storm drainage infrastructure in areas of the City outside the Ravenswood Business District. These funds support improvements needed to provide adequate drainage capacity and reduce the risk of flooding throughout the remainder of the City.

FS-17
102
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 - 641,916 1,125,741 737,123 - 266,555 2,771,335 Charges for Services - - - - - - -
Fines and Forfeitures - - - - - - -
Use of Money and Property 723,117 12,381 22,200 14,407 8,257 11,193 791,556 Grants and Intergovernmental 1,230,000 - - - - - 1,230,000 Other Miscellaneous - - - - - - -
Total Revenues 1,953,117 654,297 1,147,941 751,531 8,257 277,748 4,792,892 Expenditures
City Council - - - - - - -
City Attorney - - - - - - -
City Clerk - - - - - - -
City Manager - - - - - - -
Finance 72,832 - - - - - 72,832
Community Development - - - - - - -
Public Works 170,459 - - - - - 170,459
Police - - - - - - -
Non-Departmental
Capital/Technology 2,285,000 - - - - - 2,285,000
Insurance and Settlements - - - - - - -
IT Operations - - - - - -
Other Non-Departmental - - - - - - -
Overhead Allocation 188,608 2,178 2,178 2,289 1,919 1,661 198,832 Total Expenditures 2,716,898 2,178 2,178 2,289 1,919 1,661 2,727,123 Net Sources / (Uses) (763,780) 652,119 1,145,763 749,242 6,338 276,087 2,065,769 Other Financing Sources / (Uses)
Transfers In - - - - - - -
Transfers Out - - - - - - -
Net Operating Transfers - - - - - - -
Change in Fund Balance (763,780) 652,119 1,145,763 749,242 6,338 276,087 2,065,769 Other Changes - - - - - - -
Projected Fund Balance
July 01, 2026 Balance* 15,789,000 272,000 187,000 613,000 385,000 393,000 17,639,000 June 30, 2027 Balance 15,025,220 924,119 1,332,763 1,362,242 391,338 669,087 19,704,769 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 CAPITAL PROJECT FUNDS BUDGET
FS-18
103

ENTERPRISE FUNDS OVERVIEW
Enterprise Funds account for City operations that are financed and operated in a manner similar to private business enterprises. These activities typically generate revenue through user fees charged for services or products provided. While they are intended to be primarily self-supporting through these charges, some may require general government subsidies to fully cover operating costs.

Garbage Collection Fund
Garbage collection and recycling services in East Palo Alto are provided by Recology of San Mateo County, with revenues primarily generated through solid waste service fees. The Garbage Collection Fund accounts for residential and commercial garbage collection, street sweeping, litter control, and related services. Litter control fees are collected by the South Bay Waste Management Authority (SBWMA) from both residential and commercial customers. Residential solid waste collection fees are collected by the City through the property tax roll and remitted to Recology of San Mateo County for services provided.

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

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

The Water Service Fund accounts for lease operating revenue received from Veolia. It also includes capital and meter surcharges, as well as water capacity fees. These surcharge revenues are used to fund capital improvement costs associated with the City’s operating obligations under the agreement with Veolia.

FS-19
104
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 - - - - - - 1,609,934 - 1,609,934
Sales Tax - - - - - - - - -
Transient Occupancy Tax - - - - - - - - -
Business License Tax - - - - - - - - -
Utility User Tax - - - - - - - - -
Other Taxes - - - - - - - - -
Licenses, Fees, and Permits - - - 1,205,036 1,205,036 - 40,230 2,500,000 3,745,266 Charges for Services 10,000 1,250,000 - - 1,260,000 3,461,565 5,300,006 - 10,021,571 Fines and Forfeitures - - - - - - - - -
Use of Money and Property 536,795 396,577 56,358 20,504 1,010,233 78,513 517,638 73,403 1,679,787 Grants and Intergovernmental - - - - - - - - -
Other Miscellaneous - 23,333 - - 23,333 280,000 - - 303,333 Total Revenues 546,795 1,669,910 56,358 1,225,540 3,498,602 3,820,078 7,467,808 2,573,403 17,359,891 Expenditures
City Council - - - - - - 7,500 - 7,500
City Attorney 7,000 - - - 7,000 - 43,600 - 50,600
City Clerk - - - - - - - - -
City Manager - - - - - - - - -
Finance - - - - - 2,300 71,200 - 73,500
Community Development - - - - - - - - -
Public Works 168,766 5,000 - - 173,766 344,230 5,691,896 - 6,209,892 Police - - - - - - - - -
Non-Departmental -
Capital/Technology - 380,000 - - 380,000 - 2,695,000 - 3,075,000 Insurance and Settlements - - - - - - - - -
IT Operations - - - - - - 15,040 - 15,040
Other Non-Departmental 18,111 - - - 18,111 3,609,529 - - 3,627,640 Overhead Allocation 188,406 56,353 7,590 2,732 255,081 243,210 1,228,837 - 1,727,128 Total Expenditures 382,283 441,353 7,590 2,732 833,958 4,199,269 9,753,073 - 14,786,300 Net Sources / (Uses) 164,512 1,228,556 48,767 1,222,809 2,664,644 (379,191) (2,285,265) 2,573,403 2,573,591 Other Financing Sources / (Uses)
Transfers In - - - - - - - - -
Transfers Out - - - - - - - - -
Net Operating Transfers - - - - - - -
Change in Fund Balance 164,512 1,228,556 48,767 1,222,809 2,664,644 (379,191) (2,285,265) 2,573,403 2,573,591 Other Changes - - - - - - - - -
Projected Fund Balance
July 01, 2026 Balance* 2,961,000 11,075,000 1,638,000 (4,026,000) 11,648,000 1,570,000 23,843,000 164,000 37,225,000 June 30, 2027 Balance 3,125,512 12,303,556 1,686,767 (2,803,191) 14,312,644 1,190,809 21,557,735 2,737,403 39,798,591 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 ENTERPRISE FUNDS BUDGET
FS-20
105
FY 2023-24
ACTUAL
FY 2024-25
ACTUAL
FY 2025-26

ADOPTED
FY 2026-27

PROPOSED
FY 2026-27

ADOPTED
Property Tax $ 18,796,350 $ 18,988,779 $ 17,773,000 $ 17,006,190 $ 17,006,190 Sales Tax $ 6,019,894 $ 5,537,997 $ 5,279,000 $ 5,827,100 $ 5,827,100 Transient Occupancy Tax $ 2,021,494 $ 2,233,764 $ 2,200,000 $ 2,200,000 $ 2,200,000 Utility User Tax $ 2,052,280 $ 2,138,926 $ 2,094,000 $ 2,160,558 $ 2,160,558 Business License Tax $ 2,290,256 $ 2,528,951 $ 800,000 $ 830,000 $ 830,000 Permit, Fees, & Charges for Services $ 2,126,458 $ 3,532,005 $ 4,271,000 $ 3,931,613 $ 3,931,613 Other Revenues and Transfers In $ 4,405,823 $ 4,565,370 $ 3,265,000 $ 3,393,064 $ 3,393,064 Total General Fund Revenues 37,712,555 39,525,792 35,682,000 35,348,525 35,348,525

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 2023-24
ACTUAL
FY 2024-25
ACTUAL
FY 2025-26

ADOPTED
FY 2026-27

PROPOSED
FY 2026-27

ADOPTED
$18,796,350 $18,988,779 $17,773,000 $17,006,190 $17,006,190 $6,019,894 $5,537,997
$5,279,000 $5,827,100 $5,827,100
$2,021,494 $2,233,764
$2,200,000 $2,200,000 $2,200,000
$2,052,280 $2,138,926
$2,094,000 $2,160,558 $2,160,558
$2,290,256 $2,528,951
$800,000 $830,000 $830,000
$2,126,458
$3,532,005
$4,271,000 $3,931,613 $3,931,613
$4,405,823
$4,565,370
$3,265,000 $3,393,064 $3,393,064
Revenue by Category
Other Revenues and Transfers In
Permit, Fees, & Charges for Services
Business License Tax
Utility User Tax
Transient Occupancy Tax
Sales Tax
Property Tax
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107
FY 2023-24
ACTUAL
FY 2024-25
ACTUAL
FY 2025-26

ADOPTED
FY 2026-27

PROPOSED
FY 2026-27

ADOPTED
Personnel $ 17,629,619 $ 19,710,889 $ 23,601,547 $ 24,106,920 $ 24,106,920 Professional/Technical Services $ 5,852,414 $ 6,470,074 $ 9,783,967 $ 8,845,057 $ 8,845,057 Other Services/Supplies $ 4,791,228 $ 5,460,208 $ 6,967,145 $ 7,098,037 $ 7,098,037 Capital, Transfers, and Other Expenditures $ 4,721,810 $ 2,497,534 $ 1,544,612 $ 2,895,032 $ 2,895,032 Total General Fund Expenditures Before Allocations 32,995,071 $ $ 34,138,705 $ 41,897,271 $ 42,945,046 $ 42,945,046 Overhead Allocation to Other Funds $ (913,434) $ (929,182) $ (2,647,709) $ (2,860,620) $ (2,860,620) Total Net General Fund Expenditures 32,081,637 $ $ 33,209,523 $ 39,249,562 $ 40,084,427 $ 40,084,427

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 2023-24
ACTUAL
FY 2024-25
ACTUAL
FY 2025-26

ADOPTED
FY 2026-27

PROPOSED
FY 2026-27

ADOPTED
$17,629,619
$19,710,889
$23,601,547 $24,106,920 $24,106,920
$5,852,414
$6,470,074
$9,783,967 $8,845,057 $8,845,057
$4,791,228
$5,460,208
$6,967,145 $7,098,037 $7,098,037
$4,721,810
$2,497,534
$1,544,612 $2,895,032 $2,895,032
Expenditure by Category
Other Expenditures
Property Services/Supplies
Professional/Technical Services
Personnel
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FS-24
109

CITY COUNCIL
FY 2026-2027 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED FTE
* Beginning with FY 2023-24, Authorized FTE may include limited-term positions.

FY 2026-27
Operating $268,852
Positions 5
DB-1
110
Department Summary
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources 150,382 173,285 272,105 261,352 261,352 Special Revenue Funds - - - - -
Capital Project Fund - - - - -
Enterprise Funds - (346) 7,500 7,500 7,500
Succesor Agency Trust Fund - - - - -
TOTAL 150,382 172,939 279,605 268,852 268,852
EXPENDITURES BY DEPARTMENT FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
City Council 150,382 172,939 279,605 268,852 268,852
TOTAL 150,382 172,939 279,605 268,852 268,852
CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 97,496 131,770 152,743 155,490 155,490 Subtotal 97,496 131,770 152,743 155,490 155,490
Supplies and Services
Purchased Services 50,424 39,804 117,362 104,862 104,862 Supplies and Materials 2,462 1,365 2,000 1,000 1,000
Capital Expenditures - - 7,500 7,500 7,500
Other Expenditures - - - - -
Subtotal 52,886 41,169 126,862 113,362 113,362
TOTAL 150,382 172,939 279,605 268,852 268,852
AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted Proposed* Adopted*
Mayor 1.00 1.00 1.00 1.00 1.00
Vice Mayor 1.00 1.00 1.00 1.00 1.00
Council Member 3.00 3.00 3.00 3.00 3.00
TOTAL 5.00 5.00 5.00 5.00 5.00
Beginning with FY 2023-24, Authorized FTE may include limited-term positions.

CITY COUNCIL
FY 2026-2027 Budget
DB-2
111

CITY COUNCIL
FY 2026-2027 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 2025-2026 to FY 2026-2027 Budget:

The FY 2026-27 Proposed Budget reflects a decrease of $10,753 (-3.8%) compared to the FY 2025-26 Adopted Budget. The reduction is mainly driven by lower expenditures for purchased services (-$12,500) and supplies and materials (-$1,000). These savings are partially offset by an increase of $2,747 in salaries and benefits.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2025-26 Adopted $279,605
2026-27 Proposed $268,852 ($10,753) -3.8%
2026-27 Adopted $268,852 $0 0.0%

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
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CITY COUNCIL
FY 2026-2027 Budget
Total FTE’s: 5.0
MAYOR
Webster Lincoln
Vice Mayor
Ruben Abrica
Council Member
Carlos Romero
Council Member
Martha Barragan
Council Member
Mark Dinan
DB-4
113
CITY ATTORNEY’S OFFICE
FY 2026-2027 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED FTE
* Beginning with FY 2023-24, Authorized FTE may include limited-term positions.

FY 2026-27
Operating $1,680,505
Positions 3
DB-5
114
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources 957,282 1,072,305 1,461,060 1,617,805 1,617,805 Special Revenue Funds 6,987 (3,995) 42,500 10,700 10,700 Capital Project Fund - - - - -
Enterprise Funds 5,000 219,233 47,000 50,600 50,600
Succesor Agency Trust Fund - - 1,400 1,400 1,400
TOTAL 969,269 1,287,543 1,551,960 1,680,505 1,680,505
EXPENDITURES BY DEPARTMENT FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
City Attorney's Office 969,269 1,287,543 1,551,960 1,680,505 1,680,505 TOTAL 969,269 1,287,543 1,551,960 1,680,505 1,680,505
CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 478,172 663,964 709,510 734,215 734,215 Subtotal 478,172 663,964 709,510 734,215 734,215
Supplies and Services
Purchased Services 488,089 620,309 798,600 943,040 943,040 Supplies and Materials 3,008 3,270 5,750 3,250 3,250
Capital Expenditures - - 38,100 - -
Other Expenditures - - - - -
Subtotal 491,097 623,579 842,450 946,290 946,290
TOTAL 969,269 1,287,543 1,551,960 1,680,505 1,680,505
AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted Adopted Adopted Proposed* Adopted*
City Attorney 1.00 1.00 1.00 1.00 1.00
Deputy City Attorney I/II 1.00 1.00 1.00 1.00 1.00
Paralegal1 - - 1.00 1.00 1.00
Legal Assistant 1.00 1.00 - - -
TOTAL 3.00 3.00 3.00 3.00 3.00
* Beginning with FY 2023-24, Authorized FTE may include limited-term positions.

Department Summary
FY 2026-2027 Budget

CITY ATTORNEY'S OFFICE
DB-6
115
CITY ATTORNEY’S OFFICE
FY 2026-2027 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 2026-2027 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;
• Draft ordinances on topics designated as high priority by the City Council (e.g., Procurement Ordinance or Rent Registry Ordinance);

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.

DB-7
116
CITY ATTORNEY’S OFFICE
FY 2026-2027 Budget
Department Summary
(Continued)
• 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 2025-2026 to FY 2026-2027 Budget:

The FY 2026-27 Proposed Budget reflects an overall increase of $128,545 (8.3%) compared to the FY 2025-26 Adopted Budget. This increase is primarily attributable to higher purchased services costs of $144,440 and increased personnel expenses of $24,705. These increases are partially offset by reductions of $38,100 in capital expenditures and $2,500 in supplies and materials.

The FY 2026-27 Proposed Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2025-26 Adopted $1,551,960
2026-27 Proposed $1,680,505 $128,545 8.3%
2026-27 Adopted $1,680,505 $0 0.0%
DB-8
117
CITY ATTORNEY’S OFFICE
FY 2026-2027 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

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.

Accomplished.

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

Accomplished.

3. Attend and provide advice at Planning
Commission meetings.

Accomplished.

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

Accomplished.

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.

6. Represent the City in lawsuits and
administrative hearing 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, Johals case, etc.)
Accomplished.

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.

Accomplished.

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

Accomplished.

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

Accomplished.

10. Provide legal advice to the City Council,
Planning Commission and City departments
on major project applications, including AB
130/projects, proposed amendments to DAs,
IHO ordinance, and IHO interpretations
(alternative compliance), consistent with
Council direction.

Ongoing.

DB-9
118
CITY ATTORNEY’S OFFICE
FY 2026-2027 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

11. Support the Public Works Department on
various matters, including water
infrastructure, and sewer-related matters
(Sewer Ordinance amendment).

Ongoing.

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

Ongoing.

13. Assist with the drafting and legal risk
analysis of various ordinances, including
First Source Hiring, TDM Ordinance,
proposed Carpenter’s Union Ordinance.

Accomplished/Ongoing.

14. Sidewalk Vending Ordinance Accomplished. Ordinance has been adopted.

Ongoing as to implementation and outreach
efforts.

15. Permit Parking Ordinance Accomplished. Ordinance has been adopted.

Ongoing as to implementation and outreach
efforts.

16. TDM Ordinance Ongoing (near completion).

17. First Source Hiring Accomplished (Analysis). Implementation (amendment) ongoing.

18. Municode Review and Enforcement
(Parking/Street Vending and Blight)
Ongoing (recently added).

19. Ballot Measure to Amend UUT to include
streaming platforms.

Ongoing (recently added; monitoring case law).

20. Provide legal support for various initiatives,
including City Attorney Work Plan (existing
and amendments as part of recent review
cycle).

Ongoing.

21. Reach Code adoption (AB 130); Legal
Memo.

Ongoing (near-completion).

22. Negotiation of MOU for Civic Center, Police
Station and Track & Field Facility
Accomplished.

23. Negotiation of Real Estate and Land Deals,
including Corp Yard, Civic Center Parcel
Ongoing.

24. Advise on Municipal Bond Offering (General
Obligation Bond for Civic Center), including
advising on Political Reform Act issues
Ongoing.

25. Term Limits Ballot Measure Ongoing.

26. Inclusionary Housing Ordinance
Amendments
Ongoing.

27. Amendments to Sewer Ordinance (Palo
Alto).

Ongoing.

DB-10
119
CITY ATTORNEY’S OFFICE
FY 2026-2027 Budget

OBJECTIVES

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.

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, Yu case, Johals case, 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 AB130/projects, proposed amendments to DAs, IHO ordinance, and IHO interpretation.

11. Support the Public Works Department on various matters, including water infrastructure, and sewerrelated matters (Sewer Ordinance amendment).

12. Assist with the drafting and legal risk analysis of various ordinances, including First Source Hiring, TDM Ordinance, proposed Carpenter’s Union Ordinance.

13. Provide legal support for various initiatives including City Attorney Work Plan (existing and amendments as part of recent review cycle).

14. Municode Review and Enforcement (Parking Street Vending and Blight).

15. Continue to Work on Prior Council Priorities for the City Attorney’s Office.

16. Ballot Measure to Amend UUT to include streaming platforms.

DB-11
120
Total FTE’s: 3.0
CITY ATTORNEY’S OFFICE
FY 2026-2027 Budget
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\lCITY ATTORNEY
John Le
Paralegal
Deputy City Attorney I/II
DB-12
121
CITY CLERK’S OFFICE
FY 2026-2027 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED FTE
* Beginning with FY 2023-24, Authorized FTE may include limited-term positions.

FY 2026-27
Operating $667,379
Positions 2
DB-13
122
Department Summary
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources 265,775 436,094 581,228 667,379 667,379 Special Revenue Funds - - - - -
Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 265,775 436,094 581,228 667,379 667,379
EXPENDITURES BY DEPARTMENT FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
City Clerk's Office 265,775 436,094 581,228 667,379 667,379 TOTAL 265,775 436,094 581,228 667,379 667,379
CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 179,853 252,931 289,840 321,091 321,091 Subtotal 179,853 252,931 289,840 321,091 321,091
Supplies and Services
Purchased Services 84,551 171,462 289,088 341,288 341,288 Supplies and Materials 1,371 11,701 2,300 5,000 5,000
Capital Expenditures - - - - -
Other Expenditures - - - - -
Subtotal 85,922 183,163 291,388 346,288 346,288
TOTAL 265,775 436,094 581,228 667,379 667,379
AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted Adopted Adopted Proposed* Adopted*
City Clerk - Public Information Officer 1.00 1.00 1.00 1.00 1.00 Assistant City Clerk1 0.00 1.00 1.00 1.00 1.00
TOTAL 1.00 1.00 2.00 2.00 2.00
*Beginning in FY 2023-24, Authorized FTE may include limited-term positions. 1 FY 2026-27: Position title changed from Office Assistant to Assistant City Clerk.

CITY CLERK'S OFFICE
FY 2026-2027 Budget
DB-14
123
CITY CLERK’S OFFICE
FY 2026-2027 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 2025-2026 to FY 2026-2027 Budget:

The FY 2026-27 Proposed Budget reflects an overall increase of $86,151 (14.8%) compared to the FY 2025-26 Adopted Budget. The increase is primarily driven by higher salaries and benefits costs of $31,251, increased purchased services expenditures of $52,200, and an increase of $2,700 in supplies and materials.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous
% Change From
Previous
2025-26 Adopted $581,228
2026-27 Proposed $667,379 $86,151 14.8%
2026-27 Adopted $667,379 $0 0.0%

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-15
124
CITY CLERK’S OFFICE
FY 2026-2027 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Implement Sister City and Cultural Exchange
initiative.

The City formalized a Sister City partnership with
Kolofoʻou, Tonga, including an official signing
ceremony and commemorative event. Ongoing
efforts include planning a follow-up visit with
Tongan dignitaries to strengthen cultural ties.

2. Upgrade and launch new City website. The City Clerk’s office has established a dedicated committee to guide the organization and
structure of the new website and will soon be
issuing a Request for Proposals (RFP) to move
forward with its development and implementation.

3. Continue to improve social media outreach
and engagement.

The City Clerk’s office enhanced its social media
presence by increasing consistent, relevant content
and using analytics to improve engagement and
community awareness.

4. Implement communications plan. The City Clerk’s office has initiated the development of a comprehensive communications
plan and will be issuing a Request for Proposals
(RFP) to support its creation and implementation,
ensuring consistent and strategic messaging across
all departments.

5. Implement a Boards and Commissions
engagement plan.

The City Clerk’s office is currently working with
a group of staff members to address Boards and
Commissions engagement, including
brainstorming strategies to improve processes,
communication, and participation. A formal plan
is expected in the coming months, in time to
support upcoming recruitment efforts for Boards
and Commissions.

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CITY CLERK’S OFFICE
FY 2026-2027 Budget

OBJECTIVES

1. Enhance Agenda and Meeting Management Efficiency.

2. Continue to improve social media outreach and engagement.

3. Modernize Records Management Systems.

4. Strengthen Crisis and Emergency Communications.

5. Develop and Implement a Comprehensive Communications Plan.

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CITY CLERK’S OFFICE
FY 2026-2027 Budget
Total FTE’s: 2.0

CITY MANAGER
City Clerk –
Public Information
Officer
Assistant City Clerk
DB-18
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CITY MANAGER’S OFFICE
FY 2026-2027 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED FTE
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

FY 2026-27
Operating $6,640,822
Positions 16.7
DB-19 128
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources 2,293,258 4,592,872 6,391,414 5,350,822 5,350,822 Special Revenue Funds - 574,590 2,950,000 1,290,000 1,290,000 Capital Project Funds 3,284 - - - -
Enterprise Funds 51,516 19,410 - - -
Succesor Agency Trust Fund - - - - -
TOTAL 2,348,058 5,186,872 9,341,414 6,640,822 6,640,822 EXPENDITURES BY DEPARTMENT FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
City Manager's Office 1,418,308 2,178,605 3,282,587 2,661,543 2,661,543 Human Resources Division 929,750 1,323,768 1,351,914 1,188,176 1,188,176 Community Programs1 - 1,243,659 3,941,000 2,186,091 2,186,091 Senior Programs1 - 440,840 765,913 605,012 605,012
TOTAL 2,348,058 5,186,872 9,341,414 6,640,822 6,640,822 CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 1,657,183 2,737,321 3,346,064 3,373,372 3,373,372 Subtotal 1,657,183 2,737,321 3,346,064 3,373,372 3,373,372 Supplies and Services
Purchased Services 639,405 1,773,661 4,599,050 1,912,450 1,912,450 Supplies and Materials 40,168 80,674 51,300 50,000 50,000 Capital Expenditures 10,000 22,950 740,000 605,000 605,000 Other Expenditures 1,300 572,266 605,000 700,000 700,000 Subtotal 690,873 2,449,551 5,995,350 3,267,450 3,267,450 TOTAL 2,348,056 5,186,872 9,341,414 6,640,822 6,640,822 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
City Manager's Office 5.00 4.00 7.00 7.00 7.00
Human Resources Division 2.00 2.00 2.00 4.00 4.00
Community Services Division1 0.00 5.70 5.70 5.70 5.70
TOTAL 7.00 11.70 14.70 16.70 16.70
1 Division transferred to City Manager's Office from Administrative Services effective FY 2024-25. *Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

CITY MANAGER'S OFFICE
FY 2026-27 Budget
Department Summary
DB-20 129
CITY MANAGER’S OFFICE
FY 2026-2027 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 comprises a total 16.7 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 (4 FTEs)
• 1 HR Manager
• 1 HR Technician
• Management Analyst I/II Ltd
• Human Resources Technician I/II Ltd
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.

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*Total FTE’s: 16.7 * Beginning with FY 2023-24, Authorized FTE may include limited-term positions.

CITY MANAGER’S OFFICE
FY 2026-2027 Budget
Information
Technology (2)

CITY MANAGER
Melvin E. Gaines
Human
Resources (4)
Community
Services (5.7)
City Manager’s
Office (5)

ASSISTANT CITY MANAGER
Shiri Klima
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SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - -
Use of Resources 1,363,508 2,159,487 3,282,587 2,661,543 2,661,543 Special Revenue Funds - - - - -
Capital Project Funds 3,284 - - - -
Enterprise Funds 51,516 19,118 - - -
Succesor Agency Trust Fund - - - - -
TOTAL 1,418,308 2,178,605 3,282,587 2,661,543 2,661,543 EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
City Manager's Office 1,418,308 2,178,605 3,282,587 2,661,543 2,661,543 TOTAL 1,418,308 2,178,605 3,282,587 2,661,543 2,661,543 CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 1,101,046 1,468,092 1,957,187 1,885,643 1,885,643 Subtotal 1,101,046 1,468,092 1,957,187 1,885,643 1,885,643 Supplies and Services
Purchased Services 300,066 702,813 1,317,400 770,400 770,400 Supplies and Materials 7,194 5,160 8,000 5,500 5,500
Capital Expenditures 10,000 2,540 - - -
Other Expenditures - - - - -
Subtotal 317,260 710,513 1,325,400 775,900 775,900
TOTAL 1,418,306 2,178,605 3,282,587 2,661,543 2,661,543 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
City Manager/General Manager 1.00 1.00 1.00 1.00 1.00
Assistant City Manager/Assistant General Manager 1.00 1.00 1.00 1.00 1.00 Assistant to the City Manager Ltd* 1.00 - - - -
Assistant to the City Manager - - 2.00 2.00 2.00
Senior Management Analyst 1.00 1.00 - - -
Information Technology (IT) Manager - - 1.00 1.00 1.00
Information Technology (IT) Specialist I/II - - 1.00 1.00 1.00 Executive Assistant to City Manager 1.00 1.00 1.00 1.00 1.00 TOTAL 5.00 4.00 7.00 7.00 7.00
*Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

CITY MANAGER'S OFFICE
FY 2026-2027 Budget
Division Summary
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CITY MANAGER’S OFFICE
FY 2026-2027 Budget
Administration Division 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 2025-2026 to FY 2026-2027 Budget:

The FY 2026–27 Proposed Budget reflects a decrease of $621,044, or 18.9%, compared to the FY 2025– 26 Adopted Budget. This reduction is primarily attributable to lower expenditures in salaries and benefits ($71,544), purchased services ($547,000), and supplies and materials ($2,500).

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2025-26 Adopted $3,282,587
2026-27 Proposed $2,661,543 ($621,044) -18.9%
2026-27 Adopted $2,661,543 $0 0.0%

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 2026-2027 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

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.

Advanced the City’s disaster preparedness by
updating the Emergency Operations Plan,
conducting staff training and emergency
exercises, coordinating with partner agencies,
expanding community outreach, installing smoke
alarms, and developing systems to track
emergency agreements and distribute
preparedness resources

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

Developed and adopted the Economic
Development Strategic Plan and 5-year
Implementation Plan, incorporating stakeholder
input and initiating execution of priority projects
to support economic sustainability.

3. Prepare an infrastructure bond for 2026. Advanced preparation of a November 2026 infrastructure ballot measure by conducting
community feasibility surveys, refining funding
strategy for a proposed $90 million measure, and
initiating outreach and informational efforts to the
community to support public understanding.

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

Advanced planning for a new Civic Center by
pursuing funding and partnership opportunities,
refining financing strategies, and awarding the
architectural design contract to initiate design, site
planning, and entitlement activities.

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

Initiated a five-year performance audit by issuing
a Request for Proposals for consulting services
and planning to engage a consultant in FY 2026–
27 to begin the audit process.

6. Implement Shopping Cart Abatement
Program.

Initiated development of a Shopping Cart
Abatement Program by conducting preliminary
research on program models and best practices
from other jurisdictions.

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

Developed and secured City Council adoption of a
sidewalk vending ordinance by conducting
research, community outreach, and policy
analysis. Staff is currently advancing
implementation planning, including program
materials, outreach, and administrative processes.

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

Advanced Community Resource Grant initiatives
by securing City Council approval of the Youth
Commission implementation plan, City Council
approval of a one-year agreement with the County
to implement the Senior Home Repair Program,
progressing procurement for a senior services
evaluation, and conducting research to inform the
structure of a small business assistance program
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CITY MANAGER’S OFFICE
FY 2026-2027 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS
aligned with the Economic Development Strategic
Plan.

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

Advanced development of a comprehensive
funding strategy for library construction by
integrating library funding into the broader Civic
Center financing approach, including a capital
campaign and potential ballot measure, and
initiating fundraising efforts in coordination with
project partners.

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

Advanced acquisition of the County-owned Beech
Street property by reaching conceptual agreement
terms with the County, securing City Council
direction on the transaction framework, and
initiating development of agreements to support
property transfer and finalize the transaction.

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CITY MANAGER’S OFFICE
FY 2026-2027 Budget

OBJECTIVES

1. Develop and implement a comprehensive funding strategy for library construction in collaboration with San Mateo County Libraries.

2. Prepare and advance a 2026 ballot measure to fund infrastructure improvements and public facilities.

3. Plan for the development of a new Civic Center facility, including key components, design, and implementation strategy.

4. Design and implement a “pop-up”/sidewalk vending policy and program that supports equitable entrepreneurship while ensuring health and safety.

5. Implement the Economic Development Strategic Plan with a focus on supporting small and micro businesses.

6. Launch and implement a comprehensive emergency preparedness program focused on readiness, response, and community education.

7. Develop and implement a program to distribute Community Resource Funds grants for small business assistance.

8. Assess utility operations and develop a transition plan for post-lease operations.

9. Finalize acquisition of the County-owned Beech Street property.

10. Develop and implement a Shopping Cart Abatement Program.

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Division Summary
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources 929,750 1,323,476 1,351,914 1,188,176 1,188,176 Special Revenue Funds - - - - -
Capital Project Funds - - - - -
Enterprise Funds - 292 - - -
Succesor Agency Trust Fund - - - - -
TOTAL 929,750 1,323,768 1,351,914 1,188,176 1,188,176
EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Human Resources Division 929,750 1,323,768 1,351,914 1,188,176 1,188,176 TOTAL 929,750 1,323,768 1,351,914 1,188,176 1,188,176
CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 556,137 701,184 764,114 829,176 829,176 Subtotal 556,137 701,184 764,114 829,176 829,176
Supplies and Services
Purchased Services 339,339 561,266 423,000 325,500 325,500 Supplies and Materials 32,974 40,908 14,800 18,500 18,500 Capital Expenditures - 20,410 150,000 15,000 15,000
Other Expenditures 1,300 - - - -
Subtotal 373,613 622,584 587,800 359,000 359,000
TOTAL 929,750 1,323,768 1,351,914 1,188,176 1,188,176
AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Human Resources Manager 1.00 1.00 1.00 1.00 1.00
Human Resources Assistant 1.00 1.00 1.00 1.00 1.00
Management Analyst I/II Ltd* - - 1.00 1.00 1.00
Human Resources Technician I/II Ltd* - - 1.00 1.00 1.00 TOTAL 2.00 2.00 4.00 4.00 4.00
*Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

CITY MANAGER'S OFFICE
FY 2026-2027 Budget
Human Resources Division
DB-29 138
CITY MANAGER’S OFFICE
FY 2026-2027 Budget
Human Resources Division Summary
The Human Resources (HR) Division currently is within the City Manager’s Office with four positions:

Human Resources Manager, Management Analyst I and two (2) Human Resources Technician I/II.

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 2026-2027 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 2026-2027 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:
• Classification and Compensation Update: Lead citywide updates to job classifications and compensation structures to align with current duties, best practices, and employment laws. The initiatives promote internal equity, succession planning, workforce stability, and fiscal responsibility, while enhancing the City’s ability to attract and retain top talent. Following these updates, conduct strategic labor negotiations with SEIU, MEA, and EPA POA to secure agreements that support retention, market competitiveness, and long-term fiscal sustainability. Completion targets: Job classifications – November 2026; Compensation study – January 2027. • Organizational Growth: Drive organizational growth by ensuring the Administrative Pool Pilot Program achieves measurable success through comprehensive support, clear guidance, and effective tools for management and participants. Simultaneously, develop a robust succession planning program that cultivates future leaders via targeted training, strategic projects, and mentorship, aligning individual growth with organizational objectives and strengthening leadership pipelines.

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 2026-2027 Budget
Human Resources Division Summary

SIGNIFICANT CHANGES
FY 2025-2026 to FY 2026-2027 Budget:

The FY 2026–27 Proposed Budget reflects a decrease of $135,592, or 10.2%, compared to the FY 2025– 26 Adopted Budget. The reduction is primarily attributable to lower expenditures for capital expenditures ($135,000) and purchased services ($97,500). These savings are partially offset by an increase of $65,062 in salaries and benefits.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2025-26 Adopted $1,351,914
2026-27 Proposed $1,188,176 ($135,592) -10.2%
2026-27 Adopted $1,188,176 $0 0.0%
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CITY MANAGER’S OFFICE
FY 2026-2027 Budget
Human Resources Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

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

Marketing strategy is working; vacancy rate
is 8%.

2. Update the classification specifications. Estimated completion November 2026.

3. Update the compensation study. Estimated completion January 2027.

4. Conduct an ergonomic citywide refresh. Completed – January 2026. Zero reportable incidents for FY 2025-26.

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

In process – Estimated completion by June 2026.

6. Increase labor management check-in
meetings.

HR meets with Local 21 and SEIU quarterly,
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CITY MANAGER’S OFFICE
FY 2026-2027 Budget
Human Resources Division

OBJECTIVES

1. Lead a citywide update of job classifications to align with current duties, best practices, and employment laws (SB 1100, 1162). The project involves collaboration with staff, departments, and labor groups to modernize specifications, promote internal equity, support succession planning, and ensure legally defensible recruitment and promotion processes. Estimated completion: November 2026.

2. Conduct a comprehensive analysis of the City’s compensation structure to attract and retain top-tier talent in a competitive labor market while maintaining fiscal responsibility. This includes updating the existing compensation study with current benchmark data, implementing equity adjustments, and strategically positioning pay to align with organizational goals. The initiative enhances workforce stability, supports long-term fiscal planning, reduces employee turnover, and strengthens the City’s reputation as an employer of choice. Estimated completion: January 2027.

3. Following the completion of the comprehensive compensation and classification studies, conduct strategic negotiations with SEIU, MEA, and EPA POA to secure agreements that advance organizational objectives. This process will ensure alignment of compensation structures with market benchmarks, reinforce internal equity, support employee retention, and uphold the City’s long-term fiscal sustainability.

4. Ensure the successful implementation and outcomes of the Administrative Pool Pilot Program by providing comprehensive support to management and participating employees. This includes offering clear guidance, effective tools, and resources that enable all stakeholders to fully engage with the program, optimize performance, and contribute to its overall success. The approach emphasizes collaboration, accountability, and continuous improvement to achieve measurable results and inform future program expansion.

5. Create a succession plan program that develops future leaders by combining targeted training, strategic thinking, and intentional career pathing. Employees engage in skill-building opportunities, participate in cross-functional projects to enhance strategic decision-making, and receive mentorship to define clear advancement paths. The program strengthens leadership pipelines, supports continuous learning, and aligns individual growth with organizational goals.

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SOURCES FY 2023-241 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources - 1,109,909 1,756,913 1,501,103 1,501,103 Special Revenue Funds - 574,590 2,950,000 1,290,000 1,290,000 Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL - 1,684,499 4,706,913 2,791,103 2,791,103
EXPENDITURES BY DIVISION FY 2023-241 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Community Programs - 1,243,659 3,941,000 2,186,091 2,186,091 Senior Programs - 440,840 765,913 605,012 605,012
TOTAL - 1,684,499 4,706,913 2,791,103 2,791,103
CHARACTER OF EXPENDITURES FY 2023-241 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits - 568,045 624,763 658,553 658,553 Subtotal - 568,045 624,763 658,553 658,553
Supplies and Services
Purchased Services - 509,582 2,858,650 816,550 816,550
Supplies and Materials - 34,606 28,500 26,000 26,000
Capital Expenditures - - 590,000 590,000 590,000
Other Expenditures - 572,266 605,000 700,000 700,000
Subtotal - 1,116,454 4,082,150 2,132,550 2,132,550
TOTAL - 1,684,499 4,706,913 2,791,103 2,791,103
AUTHORIZED FTE FY 2023-241 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted Adopted Adopted Proposed* Adopted*
Community Services Manager - 1.00 1.00 1.00 1.00
Community Services Supervisor2 - 1.00 1.00 1.00 1.00
Recreation Leader II (1 FTE, 1 PT) - 1.45 1.45 1.45 1.45 Van Drivers (2-PT) - 1.00 1.00 1.00 1.00
Nutrition Site Supervisor (PT) - 0.75 0.75 0.75 0.75
Kitchen Aide (PT) - 0.50 0.50 0.50 0.50
TOTAL - 5.70 5.70 5.70 5.70
1 Division transferred to City Manager's Office from Administrative Services effective FY 2024-25. 2 FY 2026-27: Position title changed from Recreation Coordinator to Community Services Supervisor. * Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

Division Summary

CITY MANAGER'S OFFICE
FY 2026-2027 Budget
Community Services & Recreation Division
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CITY MANAGER’S OFFICE
FY 2026-2027 Budget
Community Services Division Summary
The Division is staffed with 5.70 full-time equivalent positions:
• 1 Community Services Manager
• 1 Community Services Supervisor
• 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 2025-2026 to FY 2026-2027 Budget:

The FY 2026–27 Proposed Budget is $1,915,810, or 40.7%, lower than the FY 2025–26 Adopted Budget.

This decrease is primarily attributable to reductions in purchased services and supplies and materials totaling $2,044,600, partially offset by increases in salaries and benefits and other expenditures totaling $128,790.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2025-26 Adopted $4,706,913
2026-27 Proposed $2,791,103 ($1,915,810) -40.7%
2026-27 Adopted $2,791,103 $0 0.0%

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 2026-2027 Budget
Community Services Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

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

Completed robust Community Engagement
strategy and received approval to move forward
with three-year implementation plan for Youth
Commission and Youth Task Force.

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

In process of completing Pilot Dog Park by
adoption of budget.

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

Looking to create a more significant approach to
the joint use agreement that will serve the
community more appropriately.

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

Working on strategy to incorporate this into other
funding mechanisms like Transient Occupancy
Tax and/or Emergency Preparedness.

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

Evaluation of the Senior Center will be completed
by budget adoption in June 2026 and full
assessment will be completed by October 2026.

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

Completion of scoreboard installation was in
March. Cooley Landing AV Upgrades and Pilot
Dog Park tentative for June 2026, Stadium
Lighting and Park lighting improvements
scheduled completion is October 2026.

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

Completed and is currently in the evaluation
phase and project goals have been met each
quarter.

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

Completed and following changes to the schedule,
we are in evaluation phase to be done by
July 2026.

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CITY MANAGER’S OFFICE
FY 2026-2027 Budget
Community Services Division

OBJECTIVES

1. Continue making long deferred improvements to parks in the community that were outlined and requested in the Parks Master Plan.

2. Make use of Park/Open Space to improve citywide communication and identify new ways to streamline outreach.

3. Improve Senior Services community wide by making use of the Senior Services Assessment & Draft Plan.

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CITY MANAGER’S OFFICE
FY 2026-2027 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 functions as the City’s primary technological cornerstone, assuming full responsibility for the design, implementation, and continuous stewardship of the municipality’s digital landscape. By providing a robust and reliable infrastructure, the division ensures that every municipal department possesses the critical tools and technical support required to perform their daily operations with maximum efficiency and security.

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CITY MANAGER’S OFFICE
FY 2026-2027 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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CITY MANAGER’S OFFICE
FY 2026-2027 Budget
Information Technology Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Develop a Citywide Information Systems
Master Plan.

The 5-Year Information Technology Strategic
Plan was submitted to and subsequently approved
by the City Council.

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

To streamline digital operations and foster
organizational synergy, the City established the
Tech Governance Committee. This interdepartmental body is dedicated to breaking down silos by creating a unified forum for
communication, the scaling of shared best
practices, and the proactive identification of
technological requirements across all City
departments.

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.

The 5-Year Information Technology Strategic
Plan was developed through a comprehensive
analysis of recommended strategic priorities,
emphasizing a high degree of inter-departmental
collaboration. This collaborative process ensured
that the final Information Technology Plan—
which has been formally presented to and
accepted by the City Council—directly supports
the implementation of new applications and
processes aligned with Council priorities. By
leveraging specialized technical expertise, the
plan provides a roadmap for delivering modern
solutions that maintain seamless integration with
the City’s existing 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.

The 5-Year Information Technology Strategic
Plan incorporates a comprehensive cybersecurity
component designed to proactively defend the
City’s digital assets. Central to this pillar is a
commitment to continuous improvement of our
cybersecurity posture. By embedding these
safeguards into our long-term strategy, the City
ensures the resilience of its infrastructure against
evolving threats while maintaining operational
continuity for all departments.

5. Continue to explore and implement emerging
technologies.

Initiated a strategic research phase into emerging
AI and automation technologies as part of the 5-
Year Information Technology Strategic Plan. This
effort focused on identifying scalable AI use cases
to enhance municipal service delivery and
operational efficiency.

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CITY MANAGER’S OFFICE
FY 2026-2027 Budget
Information Technology Division

OBJECTIVES

1. Driven by the five-year IT strategic roadmap, our primary focus is the successful execution and completion of all Year 1 priorities. By adhering to this established timeline, we aim to transform these initial goals into tangible deliverables, ensuring the project maintains its momentum and remains aligned with our long-term organizational vision.

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FINANCE DEPARTMENT
FY 2026-2027 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
* Beginning with FY 2023-24, Authorized FTE may include limited-term positions.

FY 2026-27
Operating $2,113,830
Positions 8
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SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources 1,097,014 - 1,963,136 1,928,635 1,928,635 Special Revenue Funds 1,996 2,060 8,326 8,488 8,488
Capital Project Fund 25,032 51,047 62,671 72,832 72,832 Enterprise Funds 5,738 106,536 59,400 73,500 73,500
Succesor Agency Trust Fund 30,433 27,189 27,593 30,374 30,374 TOTAL 1,160,213 186,831 2,121,126 2,113,830 2,113,830
EXPENDITURES BY DEPARTMENT FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Finance Department 1,160,213 1,524,635 2,121,126 2,113,830 2,113,830 TOTAL 1,160,213 186,831 2,121,126 2,113,830 2,113,830
CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 976,555 1,130,313 1,414,780 1,455,309 1,455,309 Subtotal 976,555 1,130,313 1,414,780 1,455,309 1,455,309 Supplies and Services
Purchased Services 174,867 389,048 701,546 654,221 654,221 Supplies and Materials 8,791 3,564 4,800 4,300 4,300
Capital Expenditures - - - - -
Other Expenditures - 1,710 - - -
Subtotal 183,658 394,322 706,346 658,521 658,521
TOTAL 1,160,213 1,524,635 2,121,126 2,113,830 2,113,830 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Finance Director 1.00 1.00 1.00 1.00 1.00
Financial Services Manager 1.00 1.00 1.00 1.00 1.00
Accountant Senior 1.00 1.00 2.00 2.00 2.00
Accountant I 1.00 1.00 1.00 1.00 1.00
Account Technician I/II 2.00 1.00 1.00 1.00 1.00
Senior Accounting Technician - 1.00 1.00 1.00 1.00
Grant Coordinator 1.00 1.00 1.00 1.00 1.00
TOTAL 7.00 7.00 8.00 8.00 8.00
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

FINANCE DEPARTMENT
FY 2026-2027 Budget
Department Summary
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FINANCE DEPARTMENT
FY 2026-2027 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. • Implement a Centralized Grants Management System.
• 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 2025-2026 to FY 2026-2027 Budget:

The FY 2026–27 Proposed Budget reflects a decrease of $7,296, or 0.3%, compared to the FY 2025–26 Adopted Budget. The decrease is primarily attributable to lower expenditures for purchased services (-$47,325) and supplies and materials (-$500), partially offset by an increase in salaries and benefits (+$40,529).

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change from
Previous FY
% Change from
Previous FY
2025-26 Adopted $2,121,126
2026-27 Proposed $2,113,830 ($7,296) -0.3%
2026-27 Adopted $2,113,830 $0 0.0%

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 2026-2027 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

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

Ongoing.

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

Ongoing: The City annually reviews and updates
the Forecasting Model using economic indicators
and departmental input.

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

In Progress: In February 2026, the Council
approved the early cash defeasance of the Series
2015A Tax Allocation Refunding Bonds, planned
for June 2026 and January 2027.

4. Develop and Implement CalPERS Prefunding
Strategy.

In Progress: In February 2026, the Council
approved a $3,000,000 appropriation from the
City’s committed fund balance for Additional
Discretionary Payments (ADP) to CalPERS. Staff
is coordinating with CalPERS to process and
remit the payments per their requirements.

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

Ongoing.

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

Ongoing: Progress is underway, with City staff in
the Pause for Change Learning Cohort working
toward developing a solution.

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

Ongoing.

8. Complete FY2024-25 Annual Comprehensive
Financial Report and submit application to
Government Finance Officers Association
(GFOA) by December 2025 for both City and
Sanitary District.

Completed. ACFR was issued and submitted to
GFOA.

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FINANCE DEPARTMENT
FY 2026-2027 Budget

OBJECTIVES

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

2. Implement the early cash defeasance of the Series 2015A Tax Allocation Refunding Bonds, as approved by the Council in February 2026, with a scheduled defeasance date in January 2027.

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

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

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

6. Complete FY2025-26 Annual Comprehensive Financial Report and submit application to Government Finance Officers Association (GFOA) by December 2026 for both City and Sanitary District.

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FINANCE DEPARTMENT
FY 2026-2027 Budget
Total FTE’s: 8.0
Financial Services Manager
Accountant
Senior (2)
Accountant I Grants
Coordinator

FINANCE DIRECTOR/

DISTRICT TREASURER
Tomohito Oku
Accounting
Technician I/II
Senior Accounting
Technician
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED FTE
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

FY 2026-27
Operating $22,268,732
Positions 21
DB-49 158
Department Summary
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services 714,232 1,564,006 2,061,132 1,648,481 1,648,481 Use of Resources 2,554,967 2,140,368 2,637,516 1,895,752 1,895,752 Special Revenue Funds 1,800,742 1,253,212 2,450,439 18,724,499 18,724,499 Capital Project Funds - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 5,069,941 4,957,586 7,149,087 22,268,732 22,268,732 EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Administration Division 680,671 903,385 887,782 789,523 789,523 Building Services Division 1,165,948 1,169,013 1,735,132 1,262,481 1,262,481 Housing & Econ Development 1,698,191 1,587,325 2,798,131 18,542,361 18,542,361 Planning Division 1,525,131 1,297,863 1,728,042 1,674,367 1,674,367 TOTAL 5,069,941 4,957,586 7,149,087 22,268,732 22,268,732 CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 2,699,721 2,602,481 3,549,229 3,749,305 3,749,305 Subtotal 2,699,721 2,602,481 3,549,229 3,749,305 3,749,305 Supplies and Services
Purchased Services 2,282,873 2,306,532 3,493,958 4,393,283 4,393,283 Supplies and Materials 26,515 33,701 31,601 25,101 25,101 Capital Expenditures 833 74,873 14,300 2,000 2,000
Other Expenditures 60,000 (60,000) 60,000 14,099,044 14,099,044 Subtotal 2,370,221 2,355,106 3,599,859 18,519,428 18,519,428 TOTAL 5,069,942 4,957,587 7,149,088 22,268,732 22,268,732 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Administration Division 4.00 4.00 4.00 4.00 4.00
Building Services Division 7.00 7.00 7.00 7.00 7.00
Housing & Econ Development 4.00 4.00 5.00 5.00 5.00
Planning Division 5.00 5.00 5.00 5.00 5.00
TOTAL 20.00 20.00 21.00 21.00 21.00
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 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, such as the 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 2026-2027 Budget
Total FTE’s: 21.0
* Beginning with FY 2023-24, Authorized FTE may include limited-term positions.

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

COMMUNITY & ECONOMIC

DEVELOPMENT DIRECTOR
Vacant
Rent Stabilization
RSP Administrator
RSP Coordinator II
Senior Planner
Building Permit
Technician (2)
Chief Building Official
Planning Technician
Neighborhood
Preservation Officer
I/III (2)
Housing
Specialist I Ltd*
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SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources 558,523 797,141 686,231 498,576 498,576 Special Revenue Funds 122,148 106,244 201,551 290,947 290,947 Capital Project Funds - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 680,671 903,385 887,782 789,523 789,523
EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Administration Division 680,671 903,385 887,782 789,523 789,523 TOTAL 680,671 903,385 887,782 789,523 789,523
CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 509,069 753,484 675,672 727,543 727,543 Subtotal 509,069 753,484 675,672 727,543 727,543
Supplies and Services
Purchased Services 167,504 146,668 205,210 53,230 53,230 Supplies and Materials 4,098 2,807 6,100 7,750 7,750
Capital Expenditures - 426 800 1,000 1,000
Other Expenditures - - - - -
Subtotal 171,602 149,901 212,110 61,980 61,980
TOTAL 680,671 903,385 887,782 789,523 789,523
AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Community & Econ Development Director 1.00 1.00 1.00 1.00 1.00 Management Analyst II 1.00 1.00 1.00 1.00 1.00
Secretary II 1.00 1.00 1.00 1.00 1.00
Office Assistant 1.00 1.00 1.00 1.00 1.00
TOTAL 4.00 4.00 4.00 4.00 4.00
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

Division Summary

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Administration Division
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 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 2025-2026 to FY 2026-2027 Budget:

The FY 2026–27 Proposed Budget reflects a net decrease of $98,259, or 11.1%, compared to the FY 2025– 26 Adopted Budget. The decrease is primarily driven by a $151,980 reduction in purchased services expenditures. Partially offsetting these savings are increases of $51,871 in salaries and benefits, $1,650 in supplies and materials, and $200 in capital expenditures.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous
% Change From
Previous FY
2025-26 Adopted $887,782
2026-27 Proposed $789,523 ($98,259) -11.1%
2026-27 Adopted $789,523 $0 0.0%

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 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services 359,071 1,169,013 1,735,132 1,262,481 1,262,481 Use of Resources 806,785 - - - -
Special Revenue Funds 92 - - - -
Capital Project Funds - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 1,165,948 1,169,013 1,735,132 1,262,481 1,262,481 EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Building Services Division 1,165,948 1,169,013 1,735,132 1,262,481 1,262,481 TOTAL 1,165,948 1,169,013 1,735,132 1,262,481 1,262,481 CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 750,461 484,423 1,132,246 1,156,148 1,156,148 Subtotal 750,461 484,423 1,132,246 1,156,148 1,156,148
Supplies and Services
Purchased Services 407,309 601,106 579,736 94,683 94,683 Supplies and Materials 8,178 9,725 13,150 10,650 10,650 Capital Expenditures - 73,758 10,000 1,000 1,000
Other Expenditures - - - - -
Subtotal 415,487 684,590 602,886 106,333 106,333
TOTAL 1,165,948 1,169,013 1,735,132 1,262,481 1,262,481 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Chief Building Official 1.00 1.00 1.00 1.00 1.00
Building Inspector II 1.00 1.00 1.00 1.00 1.00
Building Permit Technician 2.00 2.00 2.00 2.00 2.00
Code Enforcement/Bldg Inspector Hybrid - - 1.00 1.00 1.00 Code Enforcement Officer II 3.00 3.00 2.00 2.00 2.00
TOTAL 7.00 7.00 7.00 7.00 7.00
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Building Services Division
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 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 2025-2026 to FY 2026-2027 Budget:

The FY 2026–27 Proposed Budget is $472,651 (27.2%) lower than the FY 2025–26 Adopted Budget. The decrease is primarily attributable to reductions in purchased services ($485,053), capital expenditures ($9,000), and supplies and materials ($2,500), partially offset by a $23,902 increase in salaries and benefits.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2025-26 Adopted $1,735,132
2026-27 Proposed $1,262,481 ($472,651) -27.2%
2026-27 Adopted $1,262,481 $0 0.0%

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 2026-2027 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.

Continued to improve service quality and
operational efficiency across the Permit Center,
Building Inspections, Building Plan Review, and
Code Enforcement. Implemented electronic plan
stamping to streamline permit issuance and reduce
manual processing. Actively piloting workflow
technologies to further automate routine tasks,
improve turnaround times, and enhance the
customer experience across all service areas

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

Adopted and implemented the 2025 California
Building Standards Code in accordance with AB
130, establishing the state baseline as the effective
standard for all permit applications. Concurrently
adopted local amendments incorporating an
updated reach code to advance sustainability and
energy efficiency goals.

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, SAP
(Safety Assessment Program) Evaluator, and
FEMA emergency preparedness 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 targeted public outreach to educate
stakeholders on the 2025 code adoption, major
changes, and their implications for building
permit applicants.

Conducted targeted public outreach to inform
stakeholders of the 2025 California Building
Standards Code adoption and its implications for
permit applicants. Building Division
informational handouts and the division website
are currently being updated to reflect new code
requirements, ensuring applicants have access to
current, accurate information prior to submittal.

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.

Continued piloting SolarAPP+ for automated,
same-day permitting of eligible residential solar
energy systems. The platform is actively being
evaluated to streamline solar permit approvals,
reduce staff review workload, and improve
turnaround times for applicants.

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

Conducted proactive code enforcement with
dedicated staff time focused on Tier 3 violations.

New case intake and case closures are both
tracking above annual targets, reflecting sustained
enforcement activity and staff commitment to
maintaining compliance and community safety
citywide.

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Building Services Division

OBJECTIVES

1. Continue to improve operational efficiency across the Permit Center, Building Inspections, Plan Review, and Code Enforcement through technology modernization, electronic workflows, and process improvements that support effective and fiscally responsible service delivery.

2. Pilot the use of AI-assisted tools to support building code compliance review, with the goal of improving plan check consistency, reducing turnaround times, and supporting the City's development objectives.

3. Explore and implement AI-assisted workflow tools to automate repetitive administrative tasks, improve staff capacity, and enhance responsiveness to permit applicants.

4. Provide staff training and community education on the 2025 California Building Standards Code and applicable state housing laws, to ensure consistent code application and informed permit applicants in support of the City's housing objectives.

5. Transition SolarAPP+ from pilot to full production for automated same-day permitting of eligible residential solar energy systems, reducing staff workload and improving turnaround times in support of the City's sustainability and infrastructure goals.

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Division Summary
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources 236,357 440,357 549,243 108,809 108,809 Special Revenue Funds 1,461,834 1,146,968 2,248,888 18,433,552 18,433,552 Capital Project Funds - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 1,698,191 1,587,325 2,798,131 18,542,361 18,542,361 EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Housing and Economic Development 1,230,713 1,105,549 2,382,437 17,953,737 17,953,737 Rent Stabilization Program 467,478 481,776 415,694 588,624 588,624 TOTAL 1,698,191 1,587,325 2,798,131 18,542,361 18,542,361 CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 662,893 505,877 835,625 927,095 927,095 Subtotal 662,893 505,877 835,625 927,095 927,095
Supplies and Services
Purchased Services 964,631 1,124,796 1,897,006 3,510,872 3,510,872 Supplies and Materials 10,667 16,541 5,500 5,350 5,350
Capital Expenditures - 111 - - -
Other Expenditures (Loans) 60,000 (60,000) 60,000 14,099,044 14,099,044 Subtotal 1,035,298 1,081,448 1,962,506 17,615,266 17,615,266 TOTAL 1,698,191 1,587,325 2,798,131 18,542,361 18,542,361 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Housing & Economic Development Mgr 1.00 1.00 1.00 1.00 1.00 Housing Project Manager 1.00 1.00 1.00 1.00 1.00
Housing Specialist I Ltd* - - 1.00 1.00 1.00
RSP Administrator 1.00 1.00 1.00 1.00 1.00
RSP Coordinator II 1.00 1.00 1.00 1.00 1.00
TOTAL 4.00 4.00 5.00 5.00 5.00
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Housing and Economic Development Division
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 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 grants, Measure HH, Measure JJ, Transient Occupancy Tax, Inclusionary Housing In-Lieu Fees, 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 (4) positions and (1) limited-term position for these services and is supported by staff from the City Attorney’s Office, City Manager’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 2025-2026 to FY 2026-2027 Budget:

The FY 2026–27 Proposed Budget reflects an increase of $15,744,230, or 562.7%, compared to the FY 2025–26 Adopted Budget. The increase is primarily driven by a $14,039,044 increase in the Other Expenditures category, consisting primarily of loan advances for the Affordable Housing Preservation Fund, Affordable Housing Production NOFA projects, and County Equity Innovation Fund preservation funding. Purchased services also increase by $1,613,866, primarily for professional and technical services related to Measure HH, major home repairs, direct rental assistance, and anti-displacement services. In addition, salaries and benefits increase by $91,470. These increases are partially offset by a $150 reduction in supplies and materials.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2025-26 Adopted $2,798,131
2026-27 Proposed $18,542,361 $15,744,230 562.7%
2026-27 Adopted $18,542,361 $0 0.0%

SERVICE DESCRIPTION
Administer affordable housing and workforce development programs, including the Rent Stabilization Program. The Rent Stabilization Program administers the Rent Stabilization and Eviction for Just Cause Ordinance, which 1) stabilizes rents, 2) protects residential tenants from unreasonable rent increases and unjust or retaliatory evictions; and 3) facilitates improvements for an economically viable rental housing market. The affordable housing and economic development programs include various initiatives to protect residents from displacement and increase housing affordability and economic mobility.

Initiatives include rental assistance, eviction defense, homelessness prevention, foreclosure prevention, home repairs, housing rehabilitation and preservation, affordable housing production, first-time homebuyer support, workforce development, and connection to job opportunities in the STEM and Building trades fields.

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Identify, apply for, and leverage regional,
state and federal funding sources for
affordable housing activities.

In 2025, the City did not submit applications for
additional funding due to a reduction in available
state funding. The City continues to monitor
funding opportunities and assess alternative
sources to sustain and advance housing programs,
ensuring ongoing support for affordable housing
development and related community initiatives.

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

The housing team already takes an active and
collaborative role in supporting outreach efforts.

For any developer submitting an inclusionary
housing application, the housing team requires a
comprehensive marketing plan to ensure that
available units are properly and widely marketed
to the community. This includes clear guidance on
outreach strategies, recommended advertising
platforms, and best practices for reaching incomequalified households.

In addition, the housing team works closely with
developers throughout the process to encourage
inclusive, accessible, and transparent marketing
efforts. The goal is to maximize community
awareness, promote equitable access to housing
opportunities, and help ensure that all available
units reach eligible residents effectively.

3. Implement the City’s Below Market Rate
Program through monitoring and
enforcement.

Housing staff continue to work closely with the
BMR Administrator to monitor existing Below
Market Rate (BMR) units and meet on a biweekly basis to review and address program compliance cases. In addition, the team is
evaluating the Local Preference guidelines, as
needed, to support the ongoing stewardship of 53
existing BMR units and the anticipated addition of
8 new rental or for-sale inclusionary housing
units.

4. Participate in the Grand Nexus Study of
inclusionary housing in-lieu fees and
commercial linkage fees.

The City of East Palo Alto is participating in the
Grand Nexus and Feasibility Study to explore
potential updates to inclusionary housing
requirements, including an evaluation of
commercial linkage fee programs. San Mateo
County is leading the effort, with grant and
financial support provided by participating cities.

Strategic Economics was selected through a
competitive procurement process in 2025 to
conduct the study. The City Council approved
entering into a Memorandum of Understanding
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS
(MOU) with the County and Strategic Economics
on October 21, 2024, and the project officially
kicked off in January 2026.

5. Implement and provide 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.

The City of East Palo Alto continues to implement
the Inclusionary Housing Ordinance (IHO) and
provide periodic updates to the Inclusionary
Guidelines and in-lieu fee structure, as needed.

The City has also adopted provisions to address
small-scale development allowing SB 9 lot split
projects to be exempt from IHO requirements in
order to reduce barriers to housing production.

In addition, as mentioned previously, the City is
participating in the Grand Nexus and Feasibility
Study in partnership with the County, which will
inform future updates to the IHO. In the
meantime, City Council conducted an IHO Study
Session on March 24, 2026, and directed staff to
return with a Temporary Housing Development
Incentive Program (THDIP) to promote housing
development while the Grand Nexus and
Feasibility Study is conducted.

6. Track progress toward meeting RHNA
goals through the production of
inclusionary housing units, ADUs, SB 9
units, SB 35 units, Density Bonus units,
and housing for special needs and lowresourced populations.

The City annually reviews its progress in meeting
Regional Housing Needs Allocation (RHNA)
targets and evaluates the effectiveness of Housing
Element policies and programs, with findings
reported in the Annual Progress Report to HCD.

The City also tracks production of inclusionary
housing units, ADUs, SB 9 units, and housing for
special needs populations.

If the City is not making sufficient progress
toward its Housing Element goals—specifically,
achieving at least 130 lower-income units under
construction or completed by 2027—it will,
within six months, consider alternative land use
strategies. These may include amending existing
policies and programs, introducing new actions,
identifying additional housing sites (including
rezoning if necessary), and implementing
strategies to support a broader range of housing
types, such as missing middle housing, adaptive
reuse, and increased development of ADUs and
JADUs.

7. Implement a preservation strategy that
addresses funding sources, identification of
properties, and partnerships that can lead to
preservation of existing affordable and
The City of East Palo Alto is implementing a
comprehensive preservation strategy to protect
existing affordable and rent-stabilized housing.

On March 21, 2023, the City Council reviewed
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS
rent-stabilized housing units in East Palo
Alto. Prioritize assistance to lower resource
neighborhoods identified in the Housing
Element’s Affirmatively Furthering Fair
Housing (AFFH) analysis.
potential funding sources and directed staff to
pursue opportunities such as FIHPP, REAP 2.0,
and other programs, as well as to develop
preservation guidelines and establish a
preservation fund. In 2025, the City Council
allocated funding toward this effort, and staff
prepared a Preservation NOFA, anticipated for
release in early 2026.

The strategy focuses on identifying at-risk and
substandard properties, maintaining an updated
inventory of such units, and forming partnerships
to support long-term affordability. The City
prioritizes assistance to lower-resource
neighborhoods identified in the AFFH analysis
and works to ensure compliance with the State
Preservation Notice Law. Staff also actively
engage property owners to preserve at-risk units
and improve property conditions, with a goal of
rehabilitating 13 substandard or at-risk units
between 2024 and 2028.

8. Issue a Notice of Funding Availability
(NOFA) for affordable housing
preservation and production to expense
affordable housing funds.

Ongoing. In 2025, the City utilized a $100,000
award from the County of San Mateo’s Equity
Innovation Fund to develop its Affordable
Housing Preservation NOFA and program
guidelines. On May 6, 2025, the City Council
appropriated $2,050,000 toward the Affordable
Housing Preservation Program, which is
anticipated to launch in early 2026 to support the
acquisition, rehabilitation, and conversion of
housing into long-term affordable units.

Staff have started developing the Production
NOFA guidelines and are seeking Council
allocation of funding in the FY 26-27 budget, for
anticipated release of the Production NOFA in
late 2026 or in 2027.

9. Encourage smaller-scale housing that is
relatively more affordable, including
accessory dwelling units (ADUs).

Collaborate with 21 Elements, the ADU
Resource Center, and the ADU Technical
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
The Housing Division continues to meet with the
ADU Technical Working Group and collaborate
with 21 Elements/CPC and the ADU Resource
Center to expand access to smaller-scale, more
affordable housing.

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS
waivers or reductions, financial incentives
and previously approved and modular
ADU design plans.

10. Monitor and continue administration of the
CalHome ADU/JADU Loan Program.

The CalHome program ended in 2024. The City
submitted one final application to the program in
the beginning of 2025 but was not selected for
funding.

11. Implement an effective and fair housingcompliant Local Preference Policy and post to website.

On January 21, 2025, City Council adopted a
resolution adopting an updated Local Preference
Policy. The Local Preference Policy was
implemented for the Colibri Commons, a 136-unit
100% affordable housing development built on
formerly vacant city-owned land. Colibri
Commons houses individuals and families earning
30% to 60% AMI, and individuals with
disabilities or those who were formerly
experiencing homelessness. The City was able to
negotiate a 60% live/work/formerly displaced
local preference requirement with the County of
San Mateo, based on a disparate impact study
MidPen funded and the County’s AHF 12 NOFA
underwriting policies, which allow city-imposed
local preferences proportionally based on the
relative City and County financial contributions.

Of the total 136 units, 16 were set aside for
Special Needs (with State/Federal funding), and
60% of the remaining 120 (72) were local
preference, with the remaining 40% (48 units)
open pool. Colibri Commons started its marketing
in April 2025, and its tenant file intake process in
June 2026. By January 2026, it was able to
achieve full occupancy, with 89 East Palo Alto
households moved into the 136 units (65 from
local preference units, 20 from general pool, and 3
from Project Based Voucher units).

Local Preference Policy:
https://www.cityofepa.org/housing/page/localpreference

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

The City continues to meet monthly with the
County of San Mateo and core service providers
to address homelessness and manage
encampments. These meetings focus on
coordinating services, identifying resources, and
implementing strategies to connect individuals
experiencing homelessness with housing,
supportive services, and long-term solutions.

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

13. Improve transparency and communication
between the City and the public on housing
issues, making the City website, social
media, and newsletter a reliable source of
housing information and making parallel
efforts to reach residents through mailers
and in-person meetings.

The Housing Division actively works to improve
transparency and communication on housing
issues. The division regularly updates the City
website, social media channels, and newsletters to
provide reliable and accessible housing
information. In addition, the Housing Division
conducts outreach through mailers, community
meetings, and in-person events to ensure residents
have multiple ways to stay informed and provide
input.

14. Monitor and update City Council on
progress made on the City’s Housing
Element and Affordable Housing Strategy
Regularly assess the level of staffing or
contract assistance to ensure that sufficient
staffing is committed to implementing the
policies and programs in a timely manner.

The City annually reviews staffing and contract
needs during the budget process, based on the
Housing Element work program for the upcoming
fiscal year, and allocates sufficient funds within
the Community Economic Development
Department budget to support these priorities.

To augment capacity, the City entered into a
contract in 2024 with HEART of San Mateo
County for staff support as needed, with the
contract continuing through January 2027. The
City also hired a Temporary Housing Specialist to
provide additional Housing Division support in
FY 2025-26. Additionally, HEART’s Housing
Consulting Services assisted with the City’s
2024–2028 Affordable Housing Strategy Update
under a three-year shared housing staff agreement
covering 2023–2026. These efforts ensure
adequate resources are in place to implement the
City’s housing programs effectively.

15. Join with other cities in San Mateo County
to share housing staff to support longerterm housing initiatives and programs.

The City continues to participate with other San
Mateo County communities to share housing staff
and support longer-term housing initiatives and
programs. As part of this collaboration, the City
accesses HEART of San Mateo County’s Housing
Consulting Services program, leveraging
additional expertise and staffing resources.

16. With added staffing capacity, establish and
implement a rent registry for both
stabilized and market-rate rental units.

The City hired a Temporary Housing Specialist to
add Housing support on both Housing division
and Rent Stabilization Program in FY 25-26,
including support with rent registry. The City also
has a Partnership for the Bay’s Future Fellow will
is supporting with this policy goal until the end of
2026. Initiated in 2023, staff have conducted
research on implementing a citywide rent registry
for both stabilized and market-rate rental units,
including interviewing other cities such as
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS
Berkeley and Alameda and learning about their
program implementation. Progress continues, with
Tolemi selected as the vendor for the registry
database. The Rent Stabilization Program has
migrated its data and launched a portal in early
2026 to transition properties under the RSO, and
approximately 2,500 rent-stabilized units will be
registered in the new system. This expanded
staffing and infrastructure support the City’s goal
of a comprehensive and accessible rent registry.

17. With added staffing capacity, create
homeownership opportunities for East Palo
Alto residents and housing stability for
existing homeowners, prioritizing seniors
aging in place and lower-resourced
neighborhoods. Programs can include
home repair program, first-time homebuyer
program, and foreclosure prevention.

Staff has worked in collaboration with HEART of
San Mateo to support existing and future
homeowners through the creation of major and
minor home repair programs and research into a
future First Time Homebuyer Program. The City
of East Palo Alto has signed onto the County of
San Mateo Minor Home Repair program which
will begin to administer home repairs to senior
low-income households in July 2026. Staff is in
the process of finalizing guidelines and issuing a
NOFA for a Major Home Repair program once
funding is allocated by Council in FY 26-27.

Lastly, staff interviewed several banks and credit
unions with experience administering First Time
Homebuyer programs in the Bay Area. Staff will
present on the lessons learned, potential programs,
and recommendations for such a program to City
Council in mid-2026.

18. Evaluate and monitor program outcomes
for the Measure HH Pilot Workforce
Development Program.

The Pilot Workforce Development Program,
approved in October 2022 with Measure HH
funds, initially served 80 East Palo Alto residents
through three partner organizations. In 2024,
additional funding extended the program to May
2025, adding 40 more students, with the program
ultimately running through December 2025. A
consultant evaluation completed by June 2025
confirmed the program’s success and provided
recommendations for improvement.

19. Establish an RFP and execute contracts to
continue the City’s Measure HH
Workforce Development Program.

Building on the Measure HH Pilot Workforce
Development Program’s outcomes, staff have
started drafting an RFP to expand workforce
development services and plan to issue it in 2026.

20. Submit notices of noncompliance to
landlords when regulated rental units are
not properly registered as required by the
ordinances and regulations with
This is an ongoing activity of the Rent
Stabilization Program. Staff track regulated rental
units; noncompliance notices are sent out, and
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS
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.
penalty fees are accrued for noncompliance and
penalty waivers are processed for good cause.

21. 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. 26 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.

22. 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 2025-2026 Annual Program Fee
Statements and instructions for new online
registration in November 2025. Notices were
mailed to property owners of regulated units.

23. 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.

24. Provide information on the requirements
for eviction in the ordinances to landlords
and tenant, including mailing information
to tenants within one business day of
receipt of notices of eviction.

Staff provided referrals for rental assistance and
reviewed notices for compliance with the Just
Cause for Eviction Ordinance. Educated with
landlords when notices were noncompliant and
provided tenants with resources and their rights
under the Rent Stabilization Ordinance.

25. 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. During FY 25-26 staff
have brought before the Rent Board an emergency
regulation addressing notifications during the sale
of a property. Staff are also in the process of
bringing a regulation amendment before the Rent
Board.

26. Work with the Rent Stabilization Board, in
collaboration with the Building Services
This is an ongoing activity of the Rent
Stabilization Program. Staff has worked with
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS
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.

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.

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Housing and Economic Development Division

OBJECTIVES

1. Identify, apply for, and leverage regional, state and federal funding sources for affordable housing activities.

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

3. Implement the City’s Below Market Rate Program through monitoring and enforcement.

4. Participate in the Grand Nexus and Feasibility Study to update the Inclusionary Housing Ordinance and the inclusionary housing in-lieu fees and commercial linkage fees, to incentivize affordable housing development and reduce constraints.

5. Track progress toward meeting RHNA goals through the production of inclusionary housing units, ADUs, SB 9 units, SB 35 units, SB 330 units, Density Bonus units, and housing for special needs and low-resourced populations.

6. With added staffing capacity, implement a preservation strategy that addresses funding sources, identification of properties, and partnerships that can lead to preservation of existing affordable and rent-stabilized housing units in East Palo Alto. Prioritize assistance to lower resource neighborhoods identified in the Housing Element’s Affirmatively Furthering Fair Housing (AFFH) analysis.

7. With added staffing capacity, issue a Notice of Funding Availability (NOFA) for affordable housing preservation and production to expense affordable housing funds.

8. Encourage smaller-scale housing that is relatively more affordable, including accessory dwelling units (ADUs). Collaborate with 21 Elements, the ADU Resource Center, and the ADU Technical 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.

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

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

11. Improve transparency and communication between the City and the public on housing issues, making the City website, social media, and newsletter a reliable source of housing information and making parallel efforts to reach residents through mailers and in-person meetings.

12. Monitor and update City Council on progress made on the City’s Housing Element and Affordable Housing Strategy Regularly assess the level of staffing or contract assistance to ensure that sufficient staffing is committed to implementing the policies and programs in a timely manner.

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

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Housing and Economic Development Division

OBJECTIVES

14. With added staffing capacity, establish and implement a rent registry for both stabilized and market-rate rental units.

15. With added staffing capacity, create homeownership opportunities for East Palo Alto residents and housing stability for existing homeowners, prioritizing seniors aging in place and lower-resourced neighborhoods. Programs can include home repair program, first-time homebuyer program, and foreclosure prevention.

16. Continue to administer the City’s Measure HH Workforce Development Program and evaluate program impacts and improvements.

17. Provide excellent customer service support to residents, tenants, landlords, homeowners, developers and other stakeholders that interface with Housing and Rent Stabilization Program staff.

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.

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

20. 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.

21. 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.

22. Provide information on the requirements for eviction in the ordinances to landlords and tenant, including mailing information to tenants within one business day of receipt of notices of eviction.

23. 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.

24. 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.

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SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services 355,161 394,993 326,000 386,000 386,000 Use of Resources 953,302 902,870 1,402,042 1,288,367 1,288,367 Special Revenue Funds 216,668 - - - -
Capital Project Funds - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 1,525,131 1,297,863 1,728,042 1,674,367 1,674,367 EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Planning Division 1,525,131 1,297,863 1,728,042 1,674,367 1,674,367 TOTAL 1,525,131 1,297,863 1,728,042 1,674,367 1,674,367 CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 777,298 858,697 905,686 938,519 938,519 Subtotal 777,298 858,697 905,686 938,519 938,519
Supplies and Services
Purchased Services 743,429 433,962 812,006 734,498 734,498 Supplies and Materials 3,571 4,627 6,850 1,350 1,350
Capital Expenditures 833 578 3,500 - -
Other Expenditures - - - -
Subtotal 747,833 439,166 822,356 735,848 735,848
TOTAL 1,525,131 1,297,863 1,728,042 1,674,367 1,674,367 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Planning Manager 1.00 1.00 1.00 1.00 1.00
Senior Planner 1.00 1.00 1.00 1.00 1.00
Assistant/Associate Planner 2.00 2.00 2.00 2.00 2.00
Planning Technician 1.00 1.00 1.00 1.00 1.00
TOTAL 5.00 5.00 5.00 5.00 5.00
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

Division Summary

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Planning Division
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Planning Division Summary
The Planning Division is responsible for both current planning (development review) and advanced or long-range planning activities that guide the City’s growth and development. In addition to its core staff, the Division engages professional consultants, as needed, to support specialized projects and environmental review processes. Core functions include, but are not limited to, processing ministerial and discretionary development applications for entitlement; responding to daily inquiries from residents, applicants, and stakeholders; administering environmental review and permitting for private development projects; updating development ordinances and policies to maintain compliance with state law; and ensuring that all operations are conducted in an efficient, professional, and customer-oriented manner.

The General Plan and Development Code serve as the primary policy and regulatory frameworks guiding planning efforts to promote a safe, healthy, and well-balanced community consistent with the City’s vision.

Despite significant competition with other jurisdictions and private-sector employers in recent years, the Division has achieved full staffing, with only one staff turnover in the past year. The Division is currently composed of a Planning Manager, a Senior Planner, two Assistant/Associate Planners, and a Planning Technician. This stable and well-trained team has strengthened the Division’s capacity to manage a diverse workload effectively. As a result, most current planning projects are processed in-house, with only limited reliance on contract planners for supplemental support.

Consultants continue to play an important role in large or complex development proposals, such as the Four Corners and Woodland Park Apartment projects. In these cases, planners are assigned to coordinate closely with consultants ensuring continuity, institutional knowledge, and, where appropriate, assuming project management responsibilities over time. Although application volumes, particularly for smallerscale projects, remain steady, the Division’s full staffing level has enabled it to accommodate increased workload demands without routinely outsourcing small- and mid-sized projects, as was previously necessary.

The Division has also made meaningful progress on several long-range planning initiatives. Notably, it completed a comprehensive Development Code update to ensure consistency with evolving state legislation. Ongoing efforts include updates to the General Plan’s Safety Element and Health and Equity (Environmental Justice) components, as well as plans to collaborate with consultants to update the City’s Open Space Element. Planning staff also support the Housing Division in assisting with the preparation of annual progress reports. Additionally, the Division is finalizing Objective Design Standards (ODS) for

SERVICE DESCRIPTION
The Planning Division implements the City’s planning policies, which are intended to maintain and enhance the quality of life for City residents and visitors through provision of an attractive and functionally built environment, protection of desirable environmental and scenic amenities, efficient development review. The Division provides quality development review and permitting services through efficient, professional, and customerfriendly public processes under the policy direction of the Planning Commission and ultimately the City Council.

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COMMUNITY DEVELOPMENT
FY 2026-2027 Budget
Planning Division Summary
(Continued)
Planning Commission review and recommendation to City Council by the first half of this calendar year.

The ODS would facilitate consistent and compliant project review in accordance with applicable state housing laws, including the Housing Accountability Act.

Finally, the Planning Division provides professional and administrative support to the Planning Commission, whose members are appointed by the City Council. The Commission is mandated by state law to review and act on planning and development matters, and the Division ensures that all items are presented with thorough analysis and clear recommendations. Moving forward, the Planning Division remains committed to continuous process improvements, enhanced service delivery, and the implementation of systems that promote transparency, efficiency, and accountability in all aspects of its work.

SIGNIFICANT CHANGES
FY 2025-2026 to FY 2026-2027 Budget:

The FY 2026–27 Proposed Budget reflects a decrease of $53,675, or 3.1%, compared to the FY 2025–26 Adopted Budget. The decrease is primarily driven by reductions of $77,508 in purchased services, $5,500 in supplies and materials, and $3,500 in capital expenditures. These reductions are partially offset by an increase of $32,833 in salaries and benefits.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous
% Change From
Previous
2025-26 Adopted $1,728,042
2026-27 Proposed $1,674,367 ($53,675) -3.1%
2026-27 Adopted $1,674,367 $0 0.0%
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Planning Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Ensure Planning Division staff capacity to
handle current and future projects, including
ability to augment capacity with consultants,
and a balanced range of current and long-range
projects to implement Vista 2035 and the
City’s priorities.

Stable staffing levels have enabled the Planning
Division to expand its capacity while maintaining
flexibility through consultant support for complex
and long-range efforts. The City continues to
partner with firms such as PlaceWorks and CPC
to advance key initiatives, including the ongoing
updates to the General Plan’s Safety and
Environmental Justice Elements. Staff have
successfully managed a balanced workload,
processing current planning applications and
Development Code updates for state compliance,
and process improvements in a timely manner.

Staff is currently working on additional
development code updates to incorporate
objective design standards per the Housing
Accountability Act and additional process
improvements consistent with the General Plan.

Additionally, Planning continues to provide
assistance to the Housing team in the preparation
of the annual Housing Annual Progress Report for
the City’s Housing Element.

2. Staff the public counter efficiently and
effectively.

Planning has implemented a coordinated counter
schedule aligned with planners’ and technicians’
workloads to ensure timely responses to public
inquiries and consistent, high-quality customer
service Monday through Friday. Regular
communication with front desk staff, combined
with adequate staffing levels, has provided
reliable and efficient counter coverage. Each staff
member is equipped with a city cell phone to
support direct and responsive communication.

Counter schedules are shared with administrative
staff to ensure quick access to planners when
needed. Additionally, an online appointment
system allows the public to schedule meetings,
facilitating more detailed discussions prior to
formal application submittal.

3. Enhance communication between staff and the
public through outreach efforts and social
media, as well as technology enhancements.

Improve record keeping and enhance access to
records.

Staff have enhanced communication and public
access to information by maintaining a userfriendly Division website and providing regular updates, including project information, CEQA
notices, and resources such as links to the San
Mateo County ADU Resource Center.

Applications and informational handouts have
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Planning Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS
been refined to improve clarity and usability for
the public. In alignment with the City’s
community outreach policy, staff have
implemented consistent, early, and expanded
outreach efforts for projects of varying scale. This
includes increasing mailing radii for high-interest
developments, such as the Four Corners
applications. Additionally, staff continue to
support transparency and record accessibility by
posting quarterly updates on pending and
approved administrative-level projects, ensuring
the public has timely and reliable access to key
information.

4. Respond to state mandates in a timely manner
regarding housing based on local needs,
including SB 9 and SB 35. Prepare long range
and advanced planning policies consistent with
state law.

Staff continue to build capacity to respond to
evolving state housing mandates, including SB 9
and SB 35, as well as AB 130, through ongoing
training and process improvements. Staff has
successfully processed the City’s first AB 130
application, which requires an expedited review
process. Efforts include preparing and refining
implementation procedures, updating the
Development Code, and ensuring the Division’s
webpage, training materials, and public handouts
reflect current legislative requirements. These
updates are completed on a regular basis to keep
pace with annual and biannual changes in state
law.

5. Work with the City Manager’s Office and
Code Enforcement staff to develop a pop-up
and unlicensed businesses policy and program.

Planning staff has worked with the City
Manager’s Office and Code Enforcement for the
adoption for mobile vendor ordinance, Planning
will continue to coordinate with both the City
Manager and Code Enforcement of the new
ordinance
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2025-2026 Budget
Planning Division

OBJECTIVES

1. Ensure Planning Division staff capacity to handle current and future projects, including ability to augment capacity with consultants, and a balanced range of current and long-range projects to implement Vista 2035 and the City’s priorities.

2. Staff the public counter efficiently and effectively.

3. Enhance communication between staff and the public through outreach efforts and social media, as well as technology enhancements. Improve record keeping and enhance access to records.

4. Respond to state mandates in a timely manner in regards to housing based on local needs, including SB 9 and SB 35. Prepare long range and advanced planning policies consistent with state law.

5. Work with the City Manager’s Office and Code Enforcement staff to develop a pop-up and unlicensed businesses policy and program.

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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2026-2027 Budget
Planning Division

OBJECTIVES

1. Continue to ensure that Planning Division staff have the capacity to manage a balanced range of development and long-range planning projects, both now and in the future, and maintain the ability to augment that capacity with consultants to support the implementation of Vista 2035 and other City’s priorities including updating the Open Space Element.

2. Continue to adequately staff the public information counter so that both walk-in visitors and callers, including members of the public and development customers, receive efficient and effective service.

3. Enhance communication between staff, members of the public, and development customers through targeted website and social media postings, periodic developer roundtable meetings, and other outreach efforts.

4. Improve recordkeeping and access to records by creating an action plan to catalog and digitize the large volume of hard-copy legacy and post-incorporation project files and procure the services of a Planning Intern to assist with this effort.

5. Maintain consistency with state legislation by timely processing Development Code updates in response to the State’s ongoing enactment of land use and development streamlining bills, including AB 130, SB 131, SB 9, SB 35, and SB 330. Additionally, continue to prepare advanced planning policies consistent with state law.

6. Work with the City Manager’s Office (IT division), as part of the IT Strategic Plan, to implement a citywide GIS platform and a robust Permit/Data Tracking System with a seamless web interface to aid land property and permit search by the public and development community.

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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED FTE
* Beginning with FY 2023-24, Authorized FTE may include limited-term positions.

FY 2026-27
Operating $15,331,926
Positions 24.91
DB-79 188
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services 183,770 311,723 123,000 150,000 150,000 Use of Resources 3,946,717 4,549,842 6,503,667 6,610,505 6,610,505 Special Revenue Funds 1,096,026 1,432,054 1,916,966 2,191,070 2,191,070 Capital Project Fund 25,218 31,170 169,267 170,459 170,459 Enterprise Funds 287,764 5,376,397 5,856,227 6,209,892 6,209,892 Succesor Agency Trust Fund - - - - -
TOTAL 5,539,495 11,701,186 14,569,127 15,331,926 15,331,926 EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Administration Division 977,147 1,312,586 1,650,840 1,740,199 1,740,199 Engineering Division 1,143,209 6,342,174 7,561,070 8,101,753 8,101,753 Maintenance Division 3,419,139 4,046,425 5,357,217 5,489,974 5,489,974 TOTAL 5,539,495 11,701,186 14,569,127 15,331,926 15,331,926 CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 2,812,611 3,792,595 4,585,783 4,499,656 4,499,656 Subtotal 2,812,611 3,792,595 4,585,783 4,499,656 4,499,656 Supplies and Services
Purchased Services 1,968,834 6,453,732 9,078,462 9,441,138 9,441,138 Supplies and Materials 632,710 727,332 754,882 814,132 814,132 Capital Expenditures 89,933 706,903 150,000 577,000 577,000 Other Expenditures 35,407 20,623 - - -
Subtotal 2,726,884 7,908,589 9,983,344 10,832,270 10,832,270 TOTAL 5,539,495 11,701,185 14,569,127 15,331,926 15,331,926 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Administration Division 4.45 4.45 4.45 4.45 4.45
Engineering Division 5.25 6.00 7.00 7.46 7.46
Maintenance Division 12.00 12.00 13.00 13.00 13.00
TOTAL 21.70 22.45 24.45 24.91 24.91
* Beginning with FY 2023-24, Authorized FTE may include limited-term positions.

Department Summary

PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Department Summary
The Public Works Department includes the Administrative, Environmental, Engineering, and Maintenance Divisions.

Divisions Overview:

Administration Division
Administration performs oversight of Engineering, Environmental and Maintenance; and also performs direct budget preparation, scheduling, and operational contract and invoice payment processing.

Administration performs a variety of direct collaboration with stakeholders including the San Francisquito Creek Joint Powers Authority flood control projects, Cal TRANS transportation issues, BAWSCA water related issues, and general county-statewide collaboration with CCAG and MTC and local environmental programs
Environmental Division
The Environmental division overseas several environmental contracts including solid waste/recycling trash services, street sweeping, tree services (Canopy) as well as planting and public education (Grassroots Ecology). The Environmental Division is responsible for coordination with the County on environmental sustainability programs as well as implementation of the City’s Climate Action Plan. The Division also ensures compliance with the NPDES permit which includes the business/industrial/restaurant inspection program. This Division is also responsible for implementing the City’s Clean City program.

Engineering Division
The Engineering Division oversees the design, development and construction of public works capital projects and facilities, including streets and roadways, water supply, and storm drainage systems.

The Division is responsible for issuing permits for any work to be performed on City right-of- way and performs various reviews related to private development projects, and prepares grant applications Maintenance Division
The Maintenance Division is responsible for the day-to-day maintenance of all City-owned facilities, parks and infrastructure. It coordinates and assists other departments with the use of City facilities during special events, holidays, as well as the general use of City facilities and parks.

MISSION STATEMENT
The Public Works Department provides administrative, engineering and maintenance services that ensure the design, construction, maintenance, and operation of public infrastructure, parks, and facilities, are high-quality and sufficient to the meet the needs of East Palo Alto residents, businesses, and visitors.

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Total FTE’s: 24.91

PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget

PUBLIC WORKS DIRECTOR
Humza Javed
Administrative
Assistant
Administration
Engineering Maintenance
City Engineer
Public Works
Supervisor
Maintenance
Manager
Maintenance
Worker I (4.0)
Maintenance
Worker II (5.0)
Maintenance
Worker III (2.0)
Management
Analyst II
Environmental
Services Aide
(1.45)
Senior Engineer
Assistant/Associate
Engineer (2.0)
Special Project
Manager Ltd* (0.46)
Utility Manager
Administrative
Assistant
Secretary
DB-82 191
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services 1,718 - 10,000 - -
Use of Resources 637,279 768,535 1,059,839 953,716 953,716 Special Revenue Funds 272,999 492,167 534,932 734,998 734,998 Capital Project Funds - - - - -
Enterprise Funds 65,151 51,884 46,069 51,485 51,485
Succesor Agency Trust Fund - - - - -
TOTAL 977,147 1,312,586 1,650,840 1,740,199 1,740,199
EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Administration Division 446,447 485,328 862,649 742,993 742,993 Environmental Programs 530,700 827,259 788,191 997,206 997,206 TOTAL 977,147 1,312,586 1,650,840 1,740,199 1,740,199
CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 561,101 681,133 843,427 857,026 857,026 Subtotal 561,101 681,133 843,427 857,026 857,026
Supplies and Services
Purchased Services 379,972 598,275 798,663 877,923 877,923 Supplies and Materials 15,380 16,529 8,750 5,250 5,250
Capital Expenditures - - - - -
Other Expenditures 20,694 16,649 - - -
Subtotal 416,046 631,453 807,413 883,173 883,173
TOTAL 977,147 1,312,586 1,650,840 1,740,199 1,740,199
AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Public Works Director 1.00 1.00 1.00 1.00 1.00
Management Analyst II 1.00 1.00 1.00 1.00 1.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Environmental Service Aide 1.45 1.45 1.45 1.45 1.45
TOTAL 4.45 4.45 4.45 4.45 4.45
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

Division Summary

PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Administration Division
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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Administration Division Summary
The Division is responsible for the oversight of a wide range of functions including:
• Maintaining existing streets, utilities and facilities. • Developing and managing the City’s Ten-Year Capital Improvement Program. • As the environmental coordinator for the City, ensuring compliance with the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA). • Serving as the Disabled Access Coordinator to ensure safe and reasonable access for all citizens under the Americans with Disabilities Act (ADA) and California Title 24. • Managing storm water efforts to ensure compliance with the Clean Water Act and other mandates of the San Francisco Bay Regional Water Quality Control Board. • Providing staff support to the City Council and Public Works and Transportation Commission • Monitoring and collaborating with regional organizations (e.g., City/County Association of Governments (C/CAG), Metropolitan Transportation Committee (MTC), the Association of Bay Area Governments (ABAG), the South Bayside Waste Management Authority and the San Francisquito Creek Joint Powers Authority).

Through these core functions, the Department supports Council Strategic Priorities by undertaking the following initiatives:

1. Enhance Public Safety and Emergency Preparedness
• Conduct inspections for new construction, remodels and public improvements throughout the City.
• Coordinate with Menlo Park Fire Protection District, West Bay Sanitary District, East Palo Alto Sanitation District, Palo Alto Park Mutual Water Company and other entities on new development and infrastructure projects. • Coordinate and collaborate with East Palo Police Department, MPFPD and others on emergency preparedness efforts.
• Maintain the storm drain system including the O’Connor Pump Station, streets and other infrastructure.
• Continue to abate graffiti and illegal dumping on public facilities, within parks and adjacent to City streets.

2. Enhance Economic Vitality
• Continue to implement capital projects with particular focus on water supply and transportation projects.

SERVICE DESCRIPTION
The Public Works Administration Division provides oversight of the engineering and maintenance and environmental services that ensure the design, construction, maintenance, and operation of public infrastructure, parks, and facilities, are high-quality and sufficient to the meet the needs of East Palo Alto residents, businesses, and visitors.

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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Administration Division Summary
(Continued)

3. Increase Organizational Effectiveness
• Develop software to provide reports and other information to the City Manager and Finance Department.
• Attend and monitor activities of special districts and regional agencies/authorities that affect the City of East Palo Alto. • More fully implement the IWORQ software within Maintenance. • Evaluate opportunities to utilize interns.

4. Improve Public Facilities and Infrastructure
• Continue to support the Engineering Division in managing the capital improvement program.
• Coordinate with SFCJPA on implementation of flood control projects, including Reach 2, Upstream Project and SAFER Bay Project.

5. Improve Communication and Enhance Community Engagement • Provide articles for City Newsletter and City Manager Notes and Quotes.

6. Create a Healthy and Safe Community
• Evaluate opportunities to enhance/expand parks and open space opportunities.

SIGNIFICANT CHANGES
FY 2025-2026 to FY 2026-2027 Budget:

The $89,359 (+5.4%) increase from the FY 2025–26 Adopted Budget to the FY 2026–27 Proposed Budget is primarily driven by an increase in purchased services of $79,260 for street maintenance services and professional and technical services, followed by an increase in salaries and benefits of $13,599. These increases are partially offset by a reduction in supplies and materials of $3,500.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2025-26 Adopted $1,650,840
2026-27 Proposed $1,740,199 $89,359 5.4%
2026-27 Adopted $1,740,199 $0 0.0%
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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Administration Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Incorporate tools to strengthen, innovate
and increase efficiency in all PW divisions
leveraging technology.

Ongoing

2. Develop and implement standardized and
streamlined procedures for contract,
purchase order, invoice tracking
management for all PW divisions.

Ongoing

3. Develop and implement standardized and
streamlined procedures for Council
approved items tracking and management
for all PW divisions.

Complete

4. Develop and implement standardized and
streamlined project management and grant
tracking system for all PW divisions.

Ongoing

5. Assist in the monitoring and adjustment of
the Gloria Way well water treatment
system to provide redundancy in the water
supply in case of water interruption or
emergencies at the SFPUC Hetch Hetchy
Water Supply Aqueduct System. While
also evaluate and assess improvement
upgrades and create efficiencies for the
well operations.

Ongoing

6. Assist in the oversight and management of
the City’s water operator and work towards
a lease extension with Veolia.

Ongoing

7. Continue to oversee groundwater
management and monitoring.

Ongoing

8. Continue to coordinate with neighboring
cities, regional agencies, and water
providers regarding various city activities
and operations.

Ongoing

9. Provide administration support to the
Public Works and Transportation
Commission (PWTC).

Ongoing

10. Manage and oversee the Environmental
Services Division.

Ongoing. In the process of creating efficiencies
between the Divisions

11. Provide general administration support to
Maintenance and Engineering Divisions.

Ongoing

12. Assist with the development,
implementation, and management of
EPASD operations and capital projects.

Ongoing

13. Provide administration support to the
EPASD Advisory Committee.

Ongoing
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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Administration Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

14. Begin planning for the establishment of a
utility division.

Ongoing

15. Continue to set up and enhance the City’s
Asset Management Plan
Ongoing

16. Continue to work with the SFCJPA on the
Reach II and Safer Bay project
advancement
Ongoing
DB-87
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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Environmental Programs

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Renew the Compost Procurement Program
through County of San Mateo Resource
Conservation District.

The third MOU with the County for the
continuation of this program was executed in
January 2026 and will guarantee service through
the end of the year. Funded by SB 1383 grant.

Future participation in the program will require
general fund (or other) allocation.

2. Review street sweeping program and create
consistency in signage and sweeping
locations
Street Sweeping Signage Audit Phase 1 completed
in Fall 2025. Signs that have damage or graffiti
have been replaced. Subsequent phases include
the installation of new signage and aligning
signage with the current sweeping contract.

3. Develop comprehensive and improved Clean
City program. Establish and expand
partnerships with County resources to
increase resources and incorporate humane
practices.

Developed updated Standard Operating
Procedures for encampment and illegal dumping
response. Increased regular coordination with
LifeMoves to conduct field visits.

4. Audit the street sweeping program to
increase services, efficiencies, and study the
possibility of bringing the program inhouse.

Ongoing

5. Continue efforts towards meeting compost
procurement targets and reduce SB 1383
non-compliance to single digits.

Public waste audit conducted with Rethink Waste
at the following locations: Bell Street Park, Jack
Farrell Park, Cooley Landing Park. Updated bin
and signage forthcoming. (Non-compliance was at
12 accounts during last update from Rethink
Waste, requested an update for 2026)

6. Execute Metropolitan Transportation
Commission Climate Program
Implementation Grant for the installation of
24 publicly accessible chargers in East Palo
Alto, prioritizing curbside and multi-family
housing locations.

Funds were appropriated through regional TIP in
October 2025. Caltrans authorization has been
initiated and project has moved into RFP phase.

7. Complete the 1960 Tate Street EV Charging
Installation Project.

Complete. In-house signage and striping for the
1960 Tate Lot is forthcoming.

8. Expand the City’s electrification plan. Ongoing. Conducted a natural gas cataloguing of all City facilities.

9. Improve and update Environmental Services
pages on the City’s website to improve
organization and clarity.

Ongoing. Sustainability Coordinator Fellow
auditing and drafting updated information.

10. Audit, update, and revamp the flood
information and resource pages on the City’s
website.

Complete. All duplicate flood information on the
Public Works webpage has been archived and
information has been condensed into a single page
reviewed by our CRS consultant.

DB-88
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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Environmental Programs

ACCOMPLISHMENTS

OBJECTIVES RESULTS

11. Improve the Community Rating System
annual recertification score for the City.

Floodplain mailers distributed to 1,900 addresses
within NFIP, sandbag graphics and outreach

12. Coordinate, expand, and lead education
events such as Bike to Work Day, recycling
programs, Earth Day/watershed cleanup
events, as well as Hazardous Waste and
annual E-Waste events.

Ongoing. Total Household Hazardous Waste
event appointments increased from 89 to 156 and
EPA household participation increased from 30 to

56. 13. Continue the development of the City’s
Sustainability E-Newsletter and increased
self-registration to 100+ subscribers.

Ongoing. Current subscriber count: 137

14. Expand tree planting efforts to 50 new trees
and provide care for 60 young trees while
enhancing educational programs, including
bilingual workshops and specialized training
for EPA Public Works staff.

Planted 92 new public trees between May 1, 2025
and May 1, 2026.

DB-89
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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Administration Division

OBJECTIVES

1. Incorporate tools to strengthen, innovate, and increase efficiency in all PW divisions leveraging technology.

2. Continue to develop and implement standardized and streamlined procedures for contract, purchase order, and invoice tracking management for all PW divisions.

3. Continue to develop and implement standardized and streamlined procedures for Council approved items tracking and management for all PW divisions.

4. Continue to develop and implement a standardized project management and grant tracking system for all PW divisions.

5. Provide administration support to the Public Works and Transportation Commission (PWTC).

6. Complete the 2-year CIP update.

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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Environmental Programs

OBJECTIVES

1. Begin construction of the MTC Regional EV Charging Project - 24 Level 2 chargers to be installed curbside and at various City facilities.

2. Continuing implementation of the Clean City Program.

3. NPDES: Complete reporting year 26-27 inspections, implement new requirements of MRP 3 and 4 permits, create more robust illicit discharge response program, and support through all elements of Annual Report completion.

4. Fellowship: Work with Bay Area Community Resources to implement the Sustainability Service Corps Fellowship program.

5. Begin Phase 2 of street sweeping signage program.

6. Increase public participation in events [E-Waste/Shred Event and Household Hazardous Waste].

7. Procure community tree planting services upon Canopy contract expiration and expand scope to include development review for “no missed opportunity” plantings.

8. Building Electrification: Implement follow-up projects to gas infrastructure audit, including the replacement of remaining gas water heaters in City facilities, if feasible, through grant funds.

9. Coordinate and execute annual events: Arbor Day Planting, Household Hazardous Waste Event, Fix-It Clinic in partnership with County, Earth Day Festival, Bike to Work Day, E-Waste & Shred Event, San Mateo County Leadership Council presentation, Wetlands & Watts, and seek out new partnerships for events that provide free/beneficial services to the community.

10. Complete PCE Member Agency Grant project and close out grant.

11. In coordination with Recology and Rethink Waste, continue outreach to expand compliance with SB 1383.

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SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services 182,052 311,723 113,000 150,000 150,000 Use of Resources 825,446 868,819 1,757,054 1,907,654 1,907,654 Special Revenue Funds 67,409 63,090 130,000 200,000 200,000 Capital Project Fund 25,218 31,170 169,267 170,459 170,459 Enterprise Funds 43,084 5,067,373 5,391,749 5,673,640 5,673,640 Succesor Agency Trust Fund - -
TOTAL 1,143,209 6,342,174 7,561,070 8,101,753 8,101,753 EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Engineering Division 1,143,209 6,342,174 7,561,070 8,101,753 8,101,753 TOTAL 1,143,209 6,342,174 7,561,070 8,101,753 8,101,753 CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 759,339 1,644,450 1,694,247 1,719,504 1,719,504 Subtotal 759,339 1,644,450 1,694,247 1,719,504 1,719,504 Supplies and Services
Purchased Services 364,448 4,147,725 5,779,323 6,309,999 6,309,999 Supplies and Materials 3,195 64,280 87,500 60,250 60,250 Capital Expenditures 3,751 482,966 - 12,000 12,000
Other Expenditures 12,476 2,753 - - -
Subtotal 383,870 4,697,724 5,866,823 6,382,249 6,382,249 TOTAL 1,143,209 6,342,174 7,561,070 8,101,753 8,101,753 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Administrative Assistant1 - - 1.00 1.00 1.00
Assistant/Associate Engineer 2.00 2.00 2.00 2.00 2.00
City Engineer 1.00 1.00 1.00 1.00 1.00
Public Works Supervisor 1.00 1.00 1.00 1.00 1.00
Senior Engineer 1.00 1.00 1.00 1.00 1.00
UUT Manager - 1.00 1.00 1.00 1.00
Special Project Manager Ltd* 0.25 - - 0.46 0.46
TOTAL 5.25 6.00 7.00 7.46 7.46
* Beginning with FY 2023-24, Authorized FTE may include limited-term positions.

Division Summary

PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Engineering Division
DB-93
202

PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Engineering Division Summary
The Engineering Division is responsible for the maintenance and enhancement of existing infrastructure and public facilities as well as the design and construction of new public projects and infrastructure.

Additionally, the Division is responsible for review and inspection of improvements required as part of new private developments. The Division provides primary support to the City’s Public Works and Transportation Commission, in accordance with the Municipal Code.

The Division strategically addresses the following on an ongoing basis:
• Capital Improvement Program and projects.
• Storm drain and flood protection.
• Roads/traffic and transportation (new facilities, major rehabilitation and regular maintenance); • Water utilities.
• NPDES and related Clean Water Act requirements.
• Encroachment & Grading Permits and land development/plan review. • Coordination with Caltrans and other agencies; and
• Disaster/emergency preparedness, mitigation, and recovery.

SIGNIFICANT CHANGES
FY 2025-2026 to FY 2026-2027 Budget:

The FY 2026–27 Proposed Budget reflects an increase of $540,683 (+7.2%) compared to the FY 2025–26 Adopted Budget. This net increase is primarily driven by higher expenditures for purchased services ($530,676), including professional and technical services, followed by increases in salaries and benefits ($25,257) and capital expenditures ($12,000). These increases are partially offset by a decrease of $27,250 in supplies and materials.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2025-26 Adopted $7,561,070
2026-27 Proposed $8,101,753 $540,683 7.2%
2026-27 Adopted $8,101,753 $0 0.0%

SERVICE DESCRIPTION
The Engineering Division develops and manages master infrastructure plans and capital projects to enhance community, economic and business development, and retention. It manages the transportation network, coordinates maintenance of streets, facilities and infrastructure and provides development review services, ensuring adequate public improvements and services to existing and new development.

DB-94
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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Engineering Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Complete construction of the 2024-2025
Annual Street Resurfacing Project.

Completed

2. Complete sidewalk improvements as part
of the Sidewalk Improvement Program.

Completed

3. Install bike lanes per the City’s adopted
Bicycle Transportation Plan.

Ongoing

4. Coordinate/Collaborate with SFC JPA on
Design, Entitlements, & Permitting of
Reach II Upstream Flood Control Project
as well as begin the design of the Safer Bay
Project.

Ongoing

5. Coordinate with the City of Palo Alto on
the construction of the Newell Bridge
Replacement Project.

Ongoing

6. Complete construction of the 12” Water
Transmission main along University
Avenue and Weeks Street.

Completed

7. Coordinate Bay trail access with MidPen
Open Space and San Francisco Public
Utilities Commission (SFPUC) at Rutgers
Street.

Completed

8. Work with SFPUC towards a fourth water
turnout in the City.

Ongoing

9. Complete construction of the 101
pedestrian overcrossing project and close
out the grants.

Completed

10. Begin construction of the University
Avenue safety improvements project for
traffic signal and intersection safety
improvements at Runnymede Street.

Complete

11. Complete the Phase I O’Connor Pump
station improvements design and
construction.

Ongoing

12. Perform review and approval of
development projects throughout the City.

Ongoing

13. Begin construction of the East Bayshore
Cyclist and Pedestrian Improvements
Project.

Underway

14. Adopt a permit parking ordinance. Complete

15. Identify options for additional water
storage.

Ongoing

16. Begin Construction of the Pulgas Avenue
Mini-Roundabout Project.

Completed
DB-95
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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Engineering Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

17. Complete the design of the Cummings Loft
improvements Project and begin
construction.

Ongoing

18. Continue the design of the East Palo Alto
Library Project.

Paused

19. Complete construction of the tenant
improvements at City Hall, the Tate Office,
and the Police Station.

Complete

20. Complete the outreach plan and begin the
design of the University Avenue Grand
Corridor Project.

Complete

21. Complete a citywide streetlight assessment
and identify areas of improvement and
begin work.

Underway

22. Complete the large trash capture project
installation.

Completed

23. Woodland Avenue Waterline and Palo Alto
Interconnect Project
Completed

24. Removal of Single-Walled UST at
O’Connor Pump Station
Completed

25. East Palo Alto Community Rating System
(CRS)
Ongoing

26. Cooley Landing O&M and periodic
inspections
Ongoing
DB-96
205

PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Engineering Division

OBJECTIVES

1. Complete the Pavement Management Plan (PMP) update.

2. Complete sidewalk improvements as part of the Sidewalk Improvement Program.

3. Install bike lanes per the City’s adopted Bicycle Transportation Plan.

4. Coordinate/Collaborate with SFC JPA on Design, Entitlements, & Permitting of Reach II Upstream Flood Control Project as well as begin the design of the Safer Bay Project.

5. Coordinate with the City of Palo Alto on the construction of the Newell Bridge Replacement Project.

6. Work with SFPUC towards a fourth water turnout in the City.

7. Complete construction of the University Avenue safety improvements project for traffic signal and intersection safety improvements at Runnymede Street.

8. Complete the Phase I O’Connor Pump station improvements design and construction.

9. Perform review and approval of development projects throughout the City.

10. Complete construction of the East Bayshore Cyclist and Pedestrian Improvements Project.

11. Finalize the permit parking program details.

12. Complete the water tank siting study.

13. Complete the construction of the Cummings Loft improvements Project and begin construction.

14. Make progress on the Civic Center Project.

15. Complete the design of the University Avenue Grand Corridor Project.

16. Complete a citywide streetlight assessment and identify areas of improvement and begin work.

17. Begin design on the Woodland Avenue Improvements Project.

18. Begin the design of the Railspur Trail Improvements.

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SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources 2,483,992 2,912,488 3,686,774 3,749,135 3,749,135 Special Revenue Funds 755,618 876,798 1,252,034 1,256,072 1,256,072 Capital Project Fund - - - - -
Enterprise Funds 179,529 257,140 418,409 484,767 484,767 Succesor Agency Trust Fund - - - - -
TOTAL 3,419,139 4,046,425 5,357,217 5,489,974 5,489,974 EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Maintenance Division 3,419,139 4,046,425 5,357,217 5,489,974 5,489,974 TOTAL 3,419,139 4,046,425 5,357,217 5,489,974 5,489,974 CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 1,492,171 1,467,013 2,048,109 1,923,126 1,923,126 Subtotal 1,492,171 1,467,013 2,048,109 1,923,126 1,923,126 Supplies and Services
Purchased Services 1,224,414 1,707,732 2,500,476 2,253,216 2,253,216 Supplies and Materials 614,135 646,523 658,632 748,632 748,632 Capital Expenditures 86,182 223,936 150,000 565,000 565,000 Other Expenditures 2,237 1,221 - - -
Subtotal 1,926,968 2,579,413 3,309,108 3,566,848 3,566,848 TOTAL 3,419,139 4,046,425 5,357,217 5,489,974 5,489,974 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Maintenance Manager 1.00 1.00 1.00 1.00 1.00
Maintenance Worker I 4.00 3.00 4.00 4.00 4.00
Maintenance Worker II 4.00 5.00 5.00 5.00 5.00
Maintenance Worker III 2.00 2.00 2.00 2.00 2.00
Secretary I 1.00 1.00 1.00 1.00 1.00
TOTAL 12.00 12.00 13.00 13.00 13.00
* Beginning with FY 2023-24, Authorized FTE may include limited-term positions.

Division Summary

PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Maintenance Division
DB-99 208

PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Maintenance Division
Maintenance Division Overview
The Maintenance Division is committed to excellence, integrity, and responsible stewardship of public resources. The Division supports the City’s core operations by maintaining parks, streets, facilities, and critical infrastructure systems that protect public health, safety, and welfare. Services are provided citywide to ensure public assets remain safe, functional, and well-maintained.

Core Services and Responsibilities
Drainage District:

Maintains and operates the citywide storm drainage system, including the O’Connor Pump Station, to support flood control and stormwater management. Ensures compliance with National Pollutant Discharge Elimination System (NPDES) requirements as mandated by the San Francisco Bay Regional Water Quality Control Board.

Facilities Maintenance:

Provides ongoing maintenance and repair of City-owned and operated facilities, including the Senior Center, sanitary sewer facilities, Police Department and substation, Corporation Yard, Community Development offices, Cooley Landing building, Reentry Program facilities, YMCA space, and park concession buildings. Emphasis is placed on preventative maintenance and operational reliability.

Parks Maintenance:

Maintains City parks and recreational spaces, including Martin Luther King Jr. Park, Jack Farrell Park, Bell Street Park, Joel Davis Park, Cooley Landing, Newbridge Pocket Park, and Bay Road Pocket Parks.

Responsibilities include landscape maintenance, irrigation, and upkeep of park amenities.

Open Space Landscaping:

Maintains landscaped areas such as street medians, alleyways, sound walls, Bay Trail corridors, and rail spur areas to support safety, environmental quality, and community aesthetics.

Urban Forestry (Trees):

Manages approximately 7,000 City trees located within public rights-of-way, parks, and facilities.

Activities include pruning, hazard mitigation, and long-term tree health management.

Graffiti Abatement Program:

Provides timely removal of graffiti from public infrastructure, including rights-of-way, facilities, parks, signage, Bay Trail areas, traffic signal cabinets, pedestrian overcrossings, and pump station sites.

SERVICE DESCRIPTION
The Maintenance Division is responsible for the ongoing maintenance and upkeep of the City’s parks, open spaces, landscaped medians, street landscaping, sidewalks, and municipal facilities. The Division also operates and manages the City’s storm drain system, including the O’Connor Pump Station, to ensure effective flood control and infrastructure reliability. In addition, the Division performs underground utility marking; provides graffiti abatement in public areas; delivers fleet maintenance and support services; and oversees the administration and management of multiple municipal service contracts to ensure efficient, consistent, and cost-effective service delivery.

DB-102
209

PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Maintenance Division
Sidewalk Maintenance:

Repairs and replaces damaged sidewalks to reduce liability, improve pedestrian safety, and maintain accessibility compliance.

Street Maintenance:

Performs roadway maintenance, including pothole repair, shoulder maintenance, and pavement crack sealing to preserve roadway conditions and extend asset life.

Regulatory Signage:

Installs and maintains traffic control and regulatory signage, including stop signs, to ensure roadway safety and compliance with standards.

Red Curb Maintenance:

Maintains over four miles of red curbs (no-parking zones) to support traffic flow, safety, and emergency access.

Illegal Dumping Response:

Supports the Clean City Program through removal of illegally dumped materials, including hazardous waste, to protect environmental quality and public health.

Street Sweeping Program Support:

Supports Street sweeping operations by installing and maintaining signage to ensure program effectiveness and compliance.

Fleet Services:

Provides maintenance and repair services for vehicles and equipment used by Community Development and Public Works Departments to ensure operational readiness.

Underground Utility Marking:

Locates and marks underground utilities in compliance with regulatory requirements to support safe excavation activities.

Emergency Response:

Provides 24/7 emergency response for after-hours and weekend incidents, including storm events, infrastructure failures, and public safety hazards.

DB-103
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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Maintenance Division

SIGNIFICANT CHANGES
FY 2025-2026 to FY 2026-2027 Budget:

The $132,757 (2.5%) increase from the FY 2025–26 Adopted Budget to the FY 2026–27 Proposed Budget is primarily driven by increased capital expenditures of $415,000 for rolling stock and a $90,000 increase in supplies and materials. These increases are partially offset by a decrease of $247,260 in purchased services and a reduction of $124,983 in salaries and benefits.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2025-26 Adopted $5,357,217
2026-27 Proposed $5,489,974 $132,757 2.5%
2026-27 Adopted $5,489,974 $0 0.0%
DB-104
211

PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Maintenance Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Upgrades to O’Connor Pump Station. In progress.

2. Repair defective sidewalks citywide to prevent
trip and fall.

Sidewalk inventory and assessment will be
conducted by Precision Concrete starting in
March 2026.

3. Conduct public tree assessment and inventory. Public tree inventory and assessment will be conducted by ArborPro starting in March 2026.

4. Maintain EPASD Facility at 901 Weeks Street. On going- reviewing facility contracts.

5. Improve maintenance of bus shelters, POC’s
and trails.

Implemented a weekly inspection and cleaning.

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212

PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Maintenance Division

OBJECTIVES

1. Enhance workforce safety and productivity.

2. Enhance inspection and cleaning of storm drainage system.

3. Reduce pothole response time to improve pavement condition.

4. Improve Parks’ asset conditions including future dog park.

5. Improve work order performance.

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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Utilities Division Summary
The Utilities Division is responsible for the City of East Palo Alto’s water service area, and East Palo Alto Sanitary District. The City of EPA’s water system is operated and maintained by Veolia Water. East Palo Alto Sanitation District is currently operated and maintained by West Bay Sanitary District.

The Division strategically addresses the following on an ongoing basis:
• Water distribution and operation, including strategic planning of a new water storage tank • Water quality sampling- ensuring drinking water meets all federal and local standards. • System maintenance of valves, hydrants, and meters.
• Water quality flushing program- ensure water in the system is circulated to ensure secondary aesthetic qualities are met.
• Sewer distribution and operation, including strategic planning of capital improvements on sewer mainline.
• Water and Sewer Capital Improvement Program: Facilitate the design and installation of new infrastructure in order to continue to meet the needs of an ever-growing City of East Palo Alto.

SERVICE DESCRIPTION
The Utilities Division is comprised of East Palo Alto Water and East Palo Alto Sanitary District, a subsidiary of the City of East Palo Alto. East Palo Alto Water serves approximately 80% of the City of EPA through 3,000 service connections. East Palo Alto Water purchase most of the City’s water from the SFPUC and receives the supply through three interconnections. East Palo Alto Sanitary District provides sewer and wastewater services, approximately 4,300 parcels in the City of East Palo Alto. EPASD system is a completely gravity fed system that runs to the Palo Alto Regional Water Quality Control Plant.

DB-107
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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Utilities Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Complete ranger pipeline project. Pipeline installed and completed.

2. Begin design of East Palo Alto Sanitary
District (EPASD) Capital Improvement
Program (CIP) 1.1 and 1.2.

Design began in April 2026.

3. Close Circuit Television (CCTV) inspection
of all EPASD mainline system.

Completed 33.6 miles of CCTV footage,
documenting all of the EPASD system.

4. Address EPASD “Hot Spots” issue and
prevent further Sanitary Sewer Overflows.

EPASD has not recorded a sanitary sewer
overflow since 2024, and “hot spots” have been
cleaned and lowered significantly in total number
in the system.

5. Earn the trust of the community back, and
make EPASD a more reliable sewer system.

City staff have focused on maintaining reliable
sewer service while integrating District operations
into City administrative, financial, and operational
processes.

6. Sewer System Master Plan Sewer System Master Plan has been completed.

7. Sewer System Management Plan Sewer System Management Plan has been completed.

8. Sewer Emergency Response Plan (SERP) The SERP has been completed in partnership with WBSD and Fischer Compliance.

9. EPASD Building Improvements Re-painted the first floor of EPASD. Made HVAC repairs, lighting repairs, flooring repairs, garage
and gate repairs, and re-started the recycling
program.
10 .

Fats, Oils, Grease Program Completion of quarterly FOG inspections for all qualifying businesses. The District and WBSD
emphasize an educational approach during
inspections and work collaboratively with
businesses to ensure compliance with Boardadopted regulations.

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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Utilities Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

11. EPASD System Repairs Performance of eleven minor mainline repairs by WBSD to maintain reliable system operations.

12. Ensure EPASD State and Federal
Requirements are brought up to date.

Ongoing reporting of sanitary sewer overflows
(SSOs) through the California Integrated Water
Quality System (CIWQS) in compliance with
regulatory requirements.

13. Regain Financial Administration and
Organization. • Establishment of financial
procedures integrating EPASD
operations into the City’s financial
systems while maintaining
appropriate separation of District
funds.
• Development of the EPASD
Master Fee Schedule to
consolidate, update, and formalize
fees associated with District
services, permits, and regulatory
programs. The schedule establishes
a comprehensive list of charges
related to sewer services,
engineering review, inspections,
permits, and administrative
functions, coordinated with the
City’s Master Fee Schedule.
• Plan Review and permitting
process has been created.

14. Hire Management and Admin Staff A full-time Utility Manager and Administrative Assistant have been hired to manage EPASD and
EPA Water.

15. EPASD Advisory Committee The Advisory Committee worked closely with staff and consultants during development of the
EPASD Master Plan and will continue
collaborating with staff as the nexus study
progresses. The AC has also discussed sewer
service fees, which staff will bring forward for
review and consideration.

DB-109
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PUBLIC WORKS DEPARTMENT
FY 2026-2027 Budget
Utilities Division

OBJECTIVES

1. Begin preliminary construction on East Palo Alto Sanitary District (EPASD) 1.1 & 1.2 Capital Improvement Program (CIP) in 2027.

2. Perform audit on all 4,300 parcels on EPASD sewer service charge list.

3. Work closely with Engineering Department on Water Tank Siting Study and other Water CIP.

4. Research and locate funding for water and EPASD CIP.

5. Continue Community outreach for Water and EPASD programs.

6. Continue research of retaining operations and maintenance of Water and EPASD internally.

DB-110
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POLICE DEPARTMENT
FY 2026-2027 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED FTE
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

FY 2026-27
Operating $17,783,877
Positions 49.80
DB-111 218
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services 414,605 485,577 545,000 580,000 580,000 Use of Resources 12,424,567 13,536,454 15,842,157 17,003,877 17,003,877 Special Revenue Funds 224,106 119,531 320,000 200,000 200,000 Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 13,063,278 14,141,562 16,707,157 17,783,877 17,783,877 EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Administration Division 5,081,256 5,487,297 6,060,147 6,588,716 6,588,716 Investigations Division 940,444 1,442,737 2,582,994 1,750,565 1,750,565 Operations Division 7,041,578 7,211,529 8,064,016 9,444,596 9,444,596 TOTAL 13,063,278 14,141,562 16,707,157 17,783,877 17,783,877 CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 9,452,796 10,119,034 11,934,674 12,466,858 12,466,858 Subtotal 9,452,796 10,119,034 11,934,674 12,466,858 12,466,858 Supplies and Services
Purchased Services 2,988,140 3,206,285 4,094,833 4,693,519 4,693,519 Supplies and Materials 384,823 393,458 387,150 423,500 423,500 Capital Expenditures 237,519 422,785 290,500 200,000 200,000 Other Expenditures - - - - -
Subtotal 3,610,482 4,022,528 4,772,483 5,317,019 5,317,019 TOTAL 13,063,278 14,141,562 16,707,157 17,783,877 17,783,877 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Administration Division 9.00 9.00 9.00 9.00 9.00
Investigations Division 11.25 6.45 6.00 6.00 6.00
Operations Division 30.35 34.80 34.80 34.80 34.80
TOTAL 50.60 50.25 49.80 49.80 49.80
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

Department Summary

POLICE DEPARTMENT
FY 2026-2027 Budget
DB-112
219

POLICE DEPARTMENT
FY 2026-2027 Budget
Department Summary
The Divisions of the Police Department consist of Administration, Investigations and Operations.

The emphasis of this fiscal year’s budget is to improve current service levels to the public. Attention will be focused on the priority of employee and organizational development, as well as community policing, crime reduction, traffic enforcement, and parking enforcement. Additionally, the department will focus on ongoing maintenance of mandated services for general law enforcement, vehicle abatement and emergency response (as a single agency or in concert with other federal, state, and/or local agencies). The Police Department will strive for successful completion of the following strategic priorities:

Administration:

1. Work with the City Manager’s Office on site selection, funding strategy, and space needs for a new police facility, ensuring the design supports modern policing, community engagement, and long-term operational growth by the end of the fiscal year.

2. Implement a targeted recruitment and hiring strategy to fill all vacant sworn and professional staff positions.

1. Collaborate with the administrative division and Human Resources to recruit, hire, and deploy enough sworn Officers and CSO’s to fully staff all positions

2. Collaborate with department leadership to creatively restructure existing resources and assignments to pilot a dedicated traffic enforcement unit focused on neighborhood traffic complaints

3. Partner with the City Manager’s Office to implement a comprehensive parking management strategy, including the acquisition or contracting of dedicated parking enforcement personnel and technology, to improve traffic flow, enhance neighborhood livability, and support equitable enforcement across the city by the end of the fiscal year.

MISSION STATEMENT
The Mission of the East Palo Alto Police Department is to provide quality police service and work in partnership with the community to preserve the peace, establish a safe environment and do so with emphasis on mutual trust and respect.

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POLICE DEPARTMENT
FY 2026-2027 Budget
Department Summary
Investigations:

1. Work with the operations and administrations divisions to recruit, assign, and train qualified investigators to fill all vacant positions within the division.

2. Expand victim support services by formalizing partnerships with advocacy organizations, increasing referrals to mental health and trauma recovery resources.

3. Partner with the City Manager’s Office to develop and implement a robust emergency preparedness plan that engages the community and enhances public awareness.

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Total FTE’s: 49.80

POLICE DEPARTMENT
FY 2026-2027 Budget
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

David Team
1 Sgt., 6 Officers
Police Sergeant (1)
Property & Evidence
Technician
Police Officer (4)
Adam Team
1 Sgt., 6 Officers
Charles Team
1 Sgt., 6 Officers
Operations
Commander Investigations
Commander
Administrative
Services
Boy Team
1 Sgt., 6 Officers

POLICE CHIEF
Jeff Liu
Support Services
Manager
Police Records Supervisor
Community Services
Officer (4)
PT Community
Service Officer (1.8)
Records Clerks I/II (4)
Management
Analyst II Ltd*
Captain
Captain
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SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services 414,605 485,577 545,000 580,000 580,000 Use of Resources 4,442,545 4,882,189 5,195,147 6,008,716 6,008,716 Special Revenue Funds 224,106 119,531 320,000 - -
Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 5,081,256 5,487,297 6,060,147 6,588,716 6,588,716 EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Administration Division 5,081,256 5,487,297 6,060,147 6,588,716 6,588,716 TOTAL 5,081,256 5,487,297 6,060,147 6,588,716 6,588,716 CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 1,578,168 1,618,109 1,763,822 1,795,855 1,795,855 Subtotal 1,578,168 1,618,109 1,763,822 1,795,855 1,795,855 Supplies and Services
Purchased Services 2,986,521 3,205,307 3,778,675 4,379,361 4,379,361 Supplies and Materials 279,048 241,096 227,150 213,500 213,500 Capital Expenditures 237,519 422,785 290,500 200,000 200,000 Other Expenditures - - - - -
Subtotal 3,503,088 3,869,188 4,296,325 4,792,861 4,792,861 TOTAL 5,081,256 5,487,297 6,060,147 6,588,716 6,588,716 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Police Chief 1.00 1.00 1.00 1.00 1.00
Support Services Manager 1.00 1.00 1.00 1.00 1.00
Property & Evidence Technician 1.00 1.00 1.00 1.00 1.00 Police Record's Clerk I/II 4.00 4.00 4.00 4.00 4.00
Police Record's Supervisor 1.00 1.00 1.00 1.00 1.00
Management Analyst II Ltd* 1.00 1.00 1.00 1.00 1.00
TOTAL 9.00 9.00 9.00 9.00 9.00
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

Division Summary

POLICE DEPARTMENT
FY 2026-2027 Budget
Administration Division
DB-117 224

POLICE DEPARTMENT
FY 2026-2027 Budget
Administration Division Summary
Under the supervision of the Chief of Police and the Support Services Manager, the Division is comprised of the Records Division, including the Property and Evidence Officer. The Administration Division has a direct staffing level of 9.0 positions.

SIGNIFICANT CHANGES
FY 2025-2026 to FY 2026-2027 Budget:

The FY 2026–27 Proposed Budget reflects an increase of $528,569 (+8.7%) compared to the FY 2025–26 Adopted Budget. This increase is primarily driven by higher expenditures for purchased services ($600,686), mainly attributable to increased county service costs, and salaries and benefits ($32,033). These increases are partially offset by decreases in capital expenditures ($90,500) and supplies and materials ($13,650).

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2025-26 Adopted $6,060,147
2026-27 Proposed $6,588,716 $528,569 8.7%
2026-27 Adopted $6,588,716 $0 0.0%

SERVICE DESCRIPTION
The Administration Division provides direction, coordination and oversight to police employees and operations involving grants, contracts, policy matters, training, discipline and purchasing.

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POLICE DEPARTMENT
FY 2026-2027 Budget
Administration Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Work with the City Manager’s Office on site
selection, funding strategy, and space needs
for a new police facility, ensuring the design
supports modern policing, community
engagement, and long-term operational
growth by the end of the fiscal year.

Working with the City Manager’s Office, we have
a promising project in process.

2. Implement a targeted recruitment and hiring
strategy to fill all vacant sworn and
professional staff positions.

The vacant Support Services Manager position
has been filled, three new Police Recruits will
onboard this year, and a panel is being held to fill
the vacant Police Officer position.

3. Implement a new Computer Aided Dispatch
(CAD) system designed to improve
efficiency for patrol personnel by
streamlining workflows, reducing response
delays, and delivering enhanced data
accuracy to support informed decision
making and resource deployment
We completed the Request for Proposals process
and evaluated multiple service providers based on
cost and deliverables. Based on this evaluation,
the department will continue working with our
existing service provider to enhance service
delivery and increase capacity.

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POLICE DEPARTMENT
FY 2026-2027 Budget
Administration Division

OBJECTIVES

1. The Civic Commons Project is progressing, and we plan to work closely with the City Manager’s Office to move forward with breaking ground on a new Police Department facility.

2. Complete the ongoing project to install an onsite Livescan system, enhancing departmental capabilities and providing an accessible resource for the community.

3. We aim to deploy new technology that provides the community with an enhanced online reporting platform, designed to overcome language barriers, ADA accessibility challenges, and literacy limitations.

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Division Summary
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources 940,444 1,442,737 2,582,994 1,750,565 1,750,565 Special Revenue Funds - - - - -
Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 940,444 1,442,737 2,582,994 1,750,565 1,750,565
EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Investigations Division 940,444 1,442,737 2,582,994 1,750,565 1,750,565 TOTAL 940,444 1,442,737 2,582,994 1,750,565 1,750,565
CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 940,444 1,440,637 2,456,836 1,626,407 1,626,407 Subtotal 940,444 1,440,637 2,456,836 1,626,407 1,626,407 Supplies and Services
Purchased Services - - 116,158 114,158 114,158
Supplies and Materials - 2,100 10,000 10,000 10,000
Capital Expenditures - - - - -
Other Expenditures - - - - -
Subtotal - 2,100 126,158 124,158 124,158
TOTAL 940,444 1,442,737 2,582,994 1,750,565 1,750,565
AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted Adopted Adopted Proposed* Adopted*
Captain 1.00 1.00 1.00 1.00 1.00
Police Officer 4.00 4.00 4.00 4.00 4.00
Police Sergeant 1.00 1.00 1.00 1.00 1.00
Community Services Officer 3.00 - - - -
Cold Case Investigator (PT) 0.45 0.45 - - -
Community Services Officer (4 PT) 1.80 - - - -
TOTAL 11.25 6.45 6.00 6.00 6.00
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

POLICE DEPARTMENT
FY 2026-2027 Budget
Investigations Division
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POLICE DEPARTMENT
FY 2026-2027 Budget
Investigations Division Summary
Under the direct supervision of the Criminal Investigations Captain, the Investigations Division is comprised of (1) Captain, (1) Detective Sergeant, (4) Police Officers (Detectives) and (2) Part-time Special Projects Managers Investigating “Cold Case” Homicides, investigative support, and special projects management.

SIGNIFICANT CHANGES
FY 2025-2026 to FY 2026-2027 Budget:

The $832,429 (32.2%) decrease from the FY 2025–26 Adopted Budget to the FY 2026–27 Proposed Budget is primarily attributable to reductions in salaries and purchased services.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous
% Change From
Previous
2025-26 Adopted $2,582,994
2026-27 Proposed $1,750,565 ($832,429) -32.2%
2026-27 Adopted $1,750,565 $0 0.0%

SERVICE DESCRIPTION
The Investigations Division conducts all major criminal investigations, including homicides and aggravated assaults.

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POLICE DEPARTMENT
FY 2026-2027 Budget
Investigations Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Work with the operations and
administrations divisions to recruit, assign,
and train qualified investigators to fill all
vacant positions within the division.

Over the past year, in coordination with the
Operations and Administration Divisions, one
full-time investigator and one limited-term
investigator were assigned to the Investigations
Division, both of whom are currently receiving
extensive formal and on-the-job training to ensure
their effectiveness in these roles.

2. Expand victim support services by
formalizing partnerships with advocacy
organizations, increasing referrals to mental
health and trauma recovery resources.

The Department has added a grant-funded mental
health crisis clinician to support both our
community and our personnel; since onboarding,
the clinician has built strong relationships with
community members and local organizations
while providing critical services to individuals
who might otherwise struggle to access needed
resources.

3. Partner with the City Manager’s Office to
develop and implement a robust emergency
preparedness plan that engages the
community and enhances public awareness.

In furtherance of this objective, the Police
Department, in partnership with the City
Manager’s Office, has been actively working to
strengthen the City’s emergency preparedness
plan while also enhancing the emergency
preparedness capabilities of City staff through
coordinated planning and training efforts.

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POLICE DEPARTMENT
FY 2026-2027 Budget
Investigations Division

OBJECTIVES

1. Enhance investigative efficiency by leveraging technology to streamline case management, improve investigative efficiency, and support timely, data-driven investigative outcomes.

2. Fully staff the Investigations Division by filling the current vacancy and ensuring the newly assigned investigator receives comprehensive training to effectively perform in the role.

3. Strengthen security and enhance the effectiveness of 290 registrations through the strategic use of technology and robust identity confirmation,
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Division Summary
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources 7,041,578 7,211,529 8,064,016 9,244,596 9,244,596 Special Revenue Funds - - - 200,000 200,000
Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
7,041,578 7,211,529 8,064,016 9,444,596 9,444,596
EXPENDITURES BY DIVISION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Operations Division 7,041,578 7,211,529 8,064,016 9,444,596 9,444,596 TOTAL 7,041,578 7,211,529 8,064,016 9,444,596 9,444,596 CHARACTER OF EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Personnel
Salaries and Benefits 6,934,184 7,060,289 7,714,016 9,044,596 9,044,596 Subtotal 6,934,184 7,060,289 7,714,016 9,044,596 9,044,596 Supplies and Services
Purchased Services 1,619 978 200,000 200,000 200,000
Supplies and Materials 105,775 150,262 150,000 200,000 200,000 Capital Expenditures - - - - -
Other Expenditures - - - - -
Subtotal 107,394 151,240 350,000 400,000 400,000
TOTAL 7,041,578 7,211,529 8,064,016 9,444,596 9,444,596 AUTHORIZED FTE FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Adopted* Adopted* Adopted* Proposed* Adopted*
Captain 1.00 1.00 1.00 1.00 1.00
Police Sergeant 4.00 4.00 4.00 4.00 4.00
Police Officer 24.00 24.00 24.00 24.00 24.00
Police Officer (3PT) 1.35 - - - -
Community Services Officer - 4.00 4.00 4.00 4.00
Community Services Officer (4 PT) - 1.80 1.80 1.80 1.80 TOTAL 30.35 34.80 34.80 34.80 34.80
* Beginning with FY 2023–24, Authorized FTE may include limited-term positions.

POLICE DEPARTMENT
FY 2026-2027 Budget
Operations Division
DB-125 232

POLICE DEPARTMENT
FY 2026-2027 Budget
Operations Division Summary
Under the direction of the Chief of Police, the Operations Division is led by (1) Captain. The Operations Division performs police patrols, calls for service response, traffic enforcement, and special enforcement activities. The Operations Division has an authorized direct staffing level of 34.80 positions.

SIGNIFICANT CHANGES
FY 2025-2026 to FY 2026-2027 Budget:

The FY 2026–27 Proposed Budget reflects an increase of $1,380,580 (17.1%) compared to the FY 2025– 26 Adopted Budget. This increase is primarily attributable to higher salaries and benefits costs of $1,330,580 and an increase of $50,000 in supplies and materials for fuel.

The FY 2026-27 Adopted Budget was adopted without any changes.

Fiscal Year (FY) Budget $ Change From
Previous
% Change From
Previous
2025-26 Adopted $8,064,016
2026-27 Proposed $9,444,596 $1,380,580 17.1%
2026-27 Adopted $9,444,596 $0 0.0%

SERVICE DESCRIPTION
The Operations Division provides effective police services throughout the City, handle service calls, engages in problem-solving with the community, and keeps the peace.

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POLICE DEPARTMENT
FY 2026-2027 Budget
Operations Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Collaborate with the administrative division
and Human Resources to recruit, hire, and
deploy enough sworn Officers and CSO’s to
fully staff all positions.

We are presently fully staffed with Police
Officers, and the recruitment process for the
anticipated upcoming open police officer position
is underway. Pending a successful conclusion of
the interview and hiring process, we anticipate
achieving full staffing by the end of the year.

2. Collaborate with department leadership to
creatively restructure existing resources and
assignments to pilot a dedicated traffic
enforcement unit focused on neighborhood
traffic complaints.

We have successfully staffed one motor officer
position and are optimistic that we will be able to
fill an additional position within the next year.

3. Partner with the City Manager’s Office to
implement a comprehensive parking
management strategy, including the
acquisition or contracting of dedicated
parking enforcement personnel and
technology, to improve traffic flow, enhance
neighborhood livability, and support
equitable enforcement across the city by the
end of the fiscal year.

In collaboration with the City Manager’s Office,
we have successfully contracted with LAZ
Parking to provide 24‑hour, seven‑day‑a‑week
parking enforcement services. Enforcement will
begin with a soft‑education phase starting April 1,
followed by full enforcement with citation
issuance beginning in mid‑April. With the
addition of this dedicated enforcement and the
support of our motor officer, we are optimistic
that traffic flow and overall neighborhood
livability will improve.

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POLICE DEPARTMENT
FY 2026-2027 Budget
Operations Division

OBJECTIVES

1. Expand the Traffic Enforcement Unit by adding a second motorcycle Officer focused on enhancing traffic safety.

2. Enhance public safety by developing informative and engaging social media content that educates our community on critical public safety topics, including crime prevention, traffic safety, emergency preparedness, and community resources. By leveraging these platforms, we hope to empower residents with knowledge, foster stronger community partnerships, and promote proactive safety practices across East Palo Alto.

3. We will collaborate with LAZ Parking to strengthen parking enforcement and remove abandoned vehicles, addressing blight and improving access to already limited street parking for the community.

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NON-DEPARTMENTAL
FY 2026-2027 Budget

CHARACTER OF EXPENDITURES
FY 2026-27
Operating $7,987,369
DB-129
236
SOURCES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
General Fund
Charges/Fees for Services - - - - -
Use of Resources 798,642 1,163,781 589,262 1,569,157 1,569,157 Special Revenue Funds 3,177,414 866,351 972,980 1,048,404 1,048,404 Capital Project Fund 9,238,459 - 180,233 188,608 188,608 Enterprise Funds 3,716,186 3,379,944 5,126,596 5,369,808 5,369,808 7,692,242 5,410,076 6,688,838 7,987,369 7,987,369
EXPENDITURES BY DEPARTMENT* FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2026-27 Actual Actual Adopted Proposed Adopted
Information Technology Replacement 526,879 288,444 379,500 1,325,968 1,325,968 Insurance and Settlements 814,687 902,832 910,690 946,816 946,816 Professional Services (excl. IT & Ins) 4,001,734 4,178,207 5,076,115 5,219,173 5,219,173 Others 2,348,942 40,594 322,533 495,412 495,412
Subtotal 7,692,242 5,410,076 6,688,838 7,987,369 7,987,369 *Excludes Successor Agency activities
**Excludes capital equipment purchases budgeted directly in department or division.

NON-DEPARTMENTAL
FY 2026-2027 Budget
Department Summary
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Miscellaneous
Introduction
This section contains the following items of interest:

MISC- 3: FY 2026-27 Capital Improvement Funding
MISC- 5: FY 2026-27 Cost Allocation Plan Overhead
Charges
MISC-1
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MISC-2
239
PROJECT # DESCRIPTION FUND SOURCE TOTAL
N/A IT Strategic Plan F111 IT Fund $1,158,000
Sub-total IT fund $1,158,000
ST-07 Annual Street Resurfacing Project F201 State Gas Tax - SB1 Funds $1,500,000 ST-09 Bicycle & Pedestrian Improvements F201 State Gas Tax - SB1 Funds $500,000 Sub-total State Gas Tax $2,000,000
ST-07 Annual Street Resurfacing Project F202 Measure A $500,000 ST-15 Signage and Striping Improvements F202 Measure A $50,000 Sub-total Measure A $550,000
ST-07 Annual Street Resurfacing Project F234 Measure W $250,000 Sub-total Measure W $250,000
N/A San Francisquito Creek Sediment Removal F301 CIP Local Match Fund $800,000 SD-04 Street Sweeping Signage F301 CIP Local Match Fund $80,000 ST-33 Woodland Ave Street Improvements F301 CIP Local Match Fund $175,000 Sub-total CIP (Local match) $1,055,000
FA-03 City Wide - EV Charging Station F303 CIP Grant Fund $580,000 ST-07 Annual Street Resurfacing Project F303 CIP Grant Fund $50,000 ST-33 Woodland Avenue Street Improvements F303 CIP Grant Fund $525,000 ST-39 Fordham Street Improvement F303 CIP Grant Fund $75,000 Sub-total CIP (Grant) $1,230,000
WS-01B Emergency Water Connects – Palo Alto Park Mutual F511 Water Capital Surcharge Fund $150,000 WD-06 Fire Hydrant Replacement (NEW) F511 Water Capital Surcharge Fund $230,000 Sub-total Water Capital Surcharge fund $380,000
EPASD 1.1 Sewer System Master Plan - Pipeline Replacement F530 EPA Sanitary District $1,000,000 EPASD 1.2 2025 Sewer System Master Plan - Pipeline Replacement F530 EPA Sanitary District $1,695,000 Sub-total Sewer Capital Surcharge fund $2,695,000
TOTAL FY 2026-27 CIP FUNDING $9,318,000
Note:

Major CIP does not include technology asset replacement.

FY 2026-2027 Capital Improvement Funding
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MISC-4
241
Allocation Building Use
City
Council
City
Manager's
Office
Clerk
Services
Human
Resource
City
Attorney Finance
PW -
Admin
PW -
Maintenance
NonDepartmental Information Technology ISF Insurance ISF TOTAL General
$ (50,225) (130,688) $ (410,164) $ (73,939) $ (114,759) $ (300,748) $ (797,448) $ (464,115) $ - $ (14,080) $ (167,685) $ (176,557) $ $ (2,700,408) State Gas Tax
$ 3,044 - $ 26,988 $ 2,663 $ 8,112 $ - $ 60,630 $ 50,812 $ - $ - $ $ 6,352 $ 6,688 $ 165,288 Measure A
$ - - $ 57 $ $ - $ - $ 7,242 - $ $ 47,274 $ - $ - $ - $ - $ 54,574 Mesure W
$ - - $ 28 $ $ - $ - $ 6,687 - $ $ 12,559 $ - $ - $ - $ - $ 19,274 NPDES
$ - 26,906 $ 19,597 $ - $ 16,603 $ - $ 44,400 $ 18,365 $ - $ - $ $ 13,001 $ 13,688 $ 152,560 Lighting District $ - - $ 5,817 $ - $ 1,028 $ - $ 30,905 $ 15,771 $ - $ - $ $ 805 $ 847 $ 55,173 Drainage District $ - - $ 6,436 $ - $ 2,934 $ - $ 38,231 $ 12,852 $ - $ - $ $ 2,297 $ 2,418 $ 65,169 CIP (Local
Matching) $ - - $ 3,752 $ - $ 5,648 $ - $ 29,573 $ 136,332$ $ - $ - $ 4,422 $ 4,656 $ 184,383 Impact Fee $ - - $ - $ $ - $ - $ 10,226 - $ $ - $ - $ - $ - $ - $ 10,226 Rent
Stabilization $ 3,044 - $ 29,282 $ 14,662 $ 22,589 $ 143,331 $ 60,646 $ - $ - $ 14,080 $ 22,110 $ 23,280 $ $ 333,024 Housing in Lieu $ - - $ 1,695 $ - $ - $ - $ 9,032 $ - $ - $ - $ $ - $ - $ 10,728 Housing TOT $ - - $ 476 $ $ - $ - $ 7,228 - $ $ - $ - $ - $ - $ - $ 7,704 Housing
Assistance $ - - $ 51 $ $ - $ - $ 9,154 - $ $ - $ - $ - $ - $ - $ 9,206 Park in Lieu
$ - - $ - $ $ - $ - $ 1,107 - $ $ - $ - $ - $ - $ - $ 1,107

CYSFF TOT
$ - - $ 790 $ $ - $ - $ 8,446 - $ $ - $ - $ - $ - $ - $ 9,236 Water
$ 9,132$ 38,438 $ 37,252 $ 7,990 $ 11,294 $ 32,358 68,663$ $ 23,350 $ - $ - $ 8,844 $ 9,312 $ 246,631 Garbage Service $ 4,565$ 65,344 $ 24,980 $ 3,994 $ 26,253 $ 46,874 - $ $ 9,356 $ - $ - $ 20,557 $ 21,644 $ 223,569 Successor Agency $ - - $ 511 $ $ - $ 1,098 $ 4,847 - $ $ - $ - $ - $ 860 $ 905 $ 8,220 EPASD
$ 30,439 - $ 252,452 $ 44,630 $ 19,200 $ 125,059 $ 353,555 $ 137,443 $ - $ - $ $ 88,439 $ 93,118 $ 1,144,337 FY 2026-27 Cost Allocation Plan Overhead Charges
MISC-5
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MISC-6
243
GLOS- 1
Glossary
AB x1 26 - legislation adopted and signed by
Governor Jerry Brown in June 2011 and upheld by
the California Supreme Court in California
Redevelopment Association, et al. v. Ana
Matosantos,et al., which eliminated redevelopment
agencies. As a result, the Redevelopment Agency
of the City of East Palo Alto (RDA) was dissolved
effective February 1, 2012. AB x1 26 provides that
the City may become the Successor Agency to the
Redevelopment Agency (affirmed by the City
Council on January 10, 2012), and continue to
satisfy “enforceable obligations” of the former
RDA and administer the dissolution and wind down
of the former RDA
AB 1484 - legislation adopted and signed by
Governor Jerry Brown in June 2012 that amended
various provisions of AB x1 26.

ADOPTED BUDGET - The City budget for a
fiscal year, adopted by the City Council by
resolution following the close of budget hearings.

APPROPRIATION - Legal authorization granted
by City Council or other policy body to make
expenditures and incur obligations for a specific
purpose within a specific time frame.

ASSESSED VALUATION - A dollar value placed
on real estate or other property by the County as a
basis for levying property taxes.

AUDIT - A review of the City's accounts by an
independent auditing firm to substantiate fiscal
year-end balances and assure compliance with
generally accepted standards for financial
accounting and reporting.

AVAILABLE FUND BALANCE - The amount
of fund balance available to finance appropriation
requirements after deducting reserves.

BOND PROCEEDS - The money paid to the
issuer by the purchaser or underwriter of a new
issue of municipal securities. These moneys are
used to finance the project or purpose for which the
securities were issued and to pay certain costs of
issuance as may be provided in the bond contract.

BONDS - A certificate of debt issued by an entity,
guaranteeing payment of the original investment,
plus interest, by a specified future date.

BUDGET - A plan of financial operation,
embodying an estimate of expenditures/ expenses
for a given period (typically a fiscal year) and the
means of financing them (revenue estimates).

Upon approval by the City Council, the budget
appropriation resolution is the legal basis for
expenditures in the fiscal year.

BUDGET AUTHORITY - Under certain
circumstances, the City Council may adjust the
budgeted appropriations for reasons unforeseen at
the time of the adoption of the original budget.

Such amendments are made by Council resolution.

The City Manager may make transfers of
appropriations within a fund.

BUDGETARY CONTROL – The control or
management of a government or enterprise in
accordance with an approved budget to keep
expenditures within the limitations of available
appropriations and available revenues.

BUSINESS LICENSE TAX - This is a general tax
on businesses for the privilege of conducting
business within the city. Rates are set at each city’s
discretion but may not be discriminatory or
confiscatory.

CAPITAL IMPROVEMENT BUDGET -
Annual appropriations for capital improvement
projects such as street improvements, building
construction and various kinds of major facility
maintenance. Capital projects are outlined in a
five-year expenditure plan which details funding
sources and expenditure amounts. They often are
multi-year projects which require funding beyond
the one-year period of the annual budget.

CAPITAL OUTLAY - Expenditures which result
in the acquisition of, or addition to, fixed assets.

CAPITAL PROJECT - Any project having assets
of significant value and a useful life of five years or more. Capital projects include the purchase of land,
design, engineering, and construction of buildings,
infrastructure such as streets, bridges, drainage,
street lighting, water/sewer systems, etc. Capital
projects may include the acquisition of heavy
equipment management control technique of
244
GLOS- 2
formal budgetary and machinery or rolling stock
using capital funding sources.

CAPITAL PROJECTS FUND - A fund created to
account for financial resources to be used for the
acquisition or construction of major capital
facilities (other than those financed by proprietary
funds and trust funds).

CAPITALIZATION POLICY - The criteria used
by a government to determine which outlays should
be reported as fixed assets.

CASH WITH FISCAL AGENT - An asset
account reflecting deposits with fiscal agents, such
as commercial banks, for the payment of bond
principal and interest.

CAPITAL INVESTMENT PROGRAM (CIP) -
A section in the five-year capital plan listing
projects for which some level of funding is
available.

COMMUNITY ORIENTED POLICING
SERVICES (COPS) - A grant program supporting
community involvement offered by the U.S.

Department of Justice.

CONSUMER PRICE INDEX (CPI) - A
statistical description of price levels provided by
the U.S. Department of Labor. The change in this
index from year to year is used to measure the cost
of living and economic inflation.

CONTINGENCY - An amount of money
appropriated for unforeseen expenditures. It is
limited to not more than 15% of the appropriations
in any fund.

CURRENT SERVICE CHARGES - These are
charges imposed to support services provided to
individuals. These charges may not exceed the cost
of providing the service plus overhead. The
rationale behind service charges is that certain
services are primarily for the benefit of individuals
rather than the general public.

DEBT SERVICE - Payment of the principal and
interest on an obligation resulting from the issuance
of bonds, notes or leasing arrangements.

DEBT SERVICE FUND - A fund established to
account for the accumulation of resources for, and
the payment of, general long term debt principal
and interest.

DEFICIT - An excess of expenditures or expenses
over revenues (resources).

DEPARTMENT - An organizational unit
comprised of divisions or programs. It is the basic
unit of service responsibility encompassing a broad
mandate of related activities.

DEPRECIATION - (1) Expiration in the service
life of fixed assets, other than wasting assets,
attributable to wear and tear, deterioration, action of the physical elements, inadequacy and
obsolescence. (2) The portion of the cost of a fixed
asset, other than wasting assets, charged as an
expense during a particular period. In accounting
for depreciation, the cost of a fixed asset, less any
salvage value, is prorated over the estimated service
life of such an asset, and each period is charged with
a portion of such cost. Through this process, the
entire cost of the asset is ultimately charged off as
an expense.

DESIGNATED FUND BALANCE- A portion of
an unreserved fund balance that has been
“earmarked” by the City Manager or the City
Council for specified purposes.

DESIGNATION - An account containing money
set aside by the City Council for a specific future
use. Money in a designation is earmarked for
specific use, but may not be legally restricted to that use.

DEVELOPMENT IMPACT FEES - Fees placed
on the development of land or conditions required
for the approval of a development project such as
the donation (“dedication” or “exaction”) of certain
lands (or money) to specific public uses. The fees
are typically justified as an offset to the future
impact that development will have on existing
infrastructure.

DIVISION - A sub-section (or activity) within a
department which furthers the objectives of the City
by providing specific services or programs.

ENCUMBERANCE - An anticipated expenditure
committed for the payment of goods and services
not yet received or paid for. Used in budgeting,
encumbrances are not GAAP expenditures or
liabilities, but represent the estimated amount of
245
GLOS- 3
expenditures ultimately to result if unperformed
contracts in process are completed.

ENTERPRISE FUND - A fund established to
account for operations financed and operated in a
manner similar to private business enterprises (e.g.,
water, gas and electric utilities, airports, parking
garages, or transit systems). In this case the
governing body intends that costs (i.e., expenses,
including depreciation) of providing goods or
services to the general public on a continuing basis
be financed or recovered primarily through user
charges. A fund established because the governing
body has decided that periodic determination of
revenues earned, expenses incurred and/or net
income is appropriate for capital maintenance,
public policy, management controls, accountability
or other purposes.

ERAF - Educational Revenue Augmentation Fund.

The state enacted legislation in 1992 whereby
partial responsibility of funding education was
shifted to local governments, directing specified
amounts of local agency property taxes to be
deposited into such funds to support schools.

EXCESS ERAF REFUND - Accounts for the
remaining funds in ERAF account after the County
of San Mateo has met the State’s revenue limits for
schools and community colleges. The revenue limit
is based on several factors such as average daily
attendance and cost of living increases. The excess
is then refunded proportionally to each agency’s
contribution based on state statue.

EXPENDITURES - Monies spent, including
current operating expenses, debt service and capital
outlays.

EXPENSE - The actual spending of funds by an
enterprise fund set aside by an appropriation.

FINES FORFEITURES AND PENALTIES -
Revenues received and/or bail monies forfeited
upon conviction of a misdemeanor or municipal
infraction.

FISCAL YEAR - In accounting terms, it is the net
of a twelve-month period used for budgeting and
accounting purposes. For the City of East Palo
Alto, the fiscal year is from July 1 to June 30.

FIXED ASSETS - Long-lived tangible assets
obtained or controlled as a result of past
transactions, events or circumstances. Fixed assets
include buildings, equipment, and improvements
other than buildings and land. In the private sector,
these assets are referred to most often as property,
plant and equipment.

FORFEITURE- See Fines, forfeitures, and
penalties.

FRANCHISES FEES- Fees paid to a municipality
from a franchisee for “rental” or as a “toll” for the
use of city streets and rights-of-way. The businesses
required to pay franchise fees in East Palo Alto
include utilities such as water, gas, electricity, cable television and solid waste collection and disposal.

Telephone utilities are specifically exempted from
franchise fees by State law.

FULL-TIME EQUIVALENT (FTE) - The
amount of time a regular full or part-time position
has been budgeted for in terms of the amount of
time an employee works in a year. Except as noted,
part-time services provided by casual/seasonal
employees, such as those for summer recreation
programs, are not included.

FUND - An independent fiscal and accounting
entity with a self-balancing set of accounts.

Examples are the General Fund, Special Revenue
Funds, Capital Projects, Enterprise, and Internal
Service Funds.

FUND BALANCE - The amount of financial
resources available for use. Generally, this
represents a summary of all the annual operating
surpluses and deficits since the fund's inception.

FY - Fiscal year.

GASOLINE TAX (HIGHWAY USERS TAX) -
The Gasoline Tax is a 26-cent per gallon tax on fuel
used to propel a motor vehicle or aircraft. The use
of these revenues is restricted to “research,
planning, construction, improvement, maintenance, and operation of public streets and highways or public mass transit guideways”. The basic means
of distribution to cities is population. The allocation formula is very complicated.

GENERAL FUND - The primary fund used to
account for all revenues and expenditures of the
City not legally restricted as to use. This fund is
used to offset the cost of the City's general
246
GLOS- 4
operations. Examples of departments financed by
the General Fund include the Police and
Administrative Support Services Departments,
such as the City Manager’s Office.

GOVERNMENT ACCOUNTING
STANDARDS BOARD (GASB) - A standardsetting body, associated with the Financial Accounting Foundation, which prescribes standard
accounting practices for governmental units.

GRANT - Contributions, gifts of cash or other
assets from another governmental entity to be used
or expended for a specific purpose, activity or
facility.

HOMEOWNER’S PROPERTY TAX RELIEF -
Revenue from the state to offset city loss of
property tax for state-imposed $7,000 per dwelling
homeowner exemption.

INFRASTRUCTURE - Facilities on which the
continuance and growth of a community depend,
such as streets and roads, sewers, public buildings,
parks, etc.

INTRAFUND TRANSFERS - A transfer of
moneys between departments in the same fund.

INVESTMENT EARNINGS - Revenue earned
from the investment of idle public funds.

JOING POWERS AUTHORITY - The Joint
Exercise of Powers Act authorizes local public
agencies to exercise common powers and to form
joint powers authorities (JPAs) for the purpose of
jointly receiving or providing specific services.

LEGAL LEVEL OF BUDGETARY
CONTROL - The level at which spending in
excess of budgeted amounts would be a violation of
law.

LEVEL OF BUDGETARY CONTROL - One of
the three possible levels of budgetary control and
authority to which organizations, programs,
activities and functions may be subject. These
levels of budgetary control are: (a) appropriated
budget, (b) legally authorized non-appropriated
budget review and approval process, which is
outside the appropriated budget process or (c) nonbudgeted financial activities, which are not subject to the appropriated budget and the appropriation
process or to any legally authorized nonappropriated budget review and approval process, but still are relevant for sound financial
management and oversight.

LEVY - (Verb) to impose taxes, special
assessments or service charges for the support of
governmental activities; (noun) the total amounts of
taxes, and/or special assessments and/or service
charges imposed by a governmental agency.

LICENESES AND PERMITS - Charge designed
to reimburse City for costs of regulating activities
being licensed, such as licensing of animals and
bicycles, etc.

LIEN - A claim on assets, especially property, for
the payment of taxes or utility service charges.

LIQUIDITY - Refers to the ability to rapidly
convert an investment into cash.

LOCAL AGENCY INVESTMENT FUND
(LAIF) - Was established by the state to enable
treasurers to place idle funds in a pool for
investment. Each agency is currently limited to
LAIF to an investment of $20 million plus any bond
proceeds.

MISSION STATEMENT- A succinct description
of the scope and purpose of a City department.

MEASURE C PARCEL TAX – A measure pass
by the voters on the November 2006 ballot that calls
for a 10 year special tax on all City parcels.

Revenue generated from such tax will be used for
public safety and crime prevention programs.

MOTOR VEHICLE IN-LIEU FEES - State
residents pay a fee to the State each year that is
computed as a percent of the depreciated value of
their motor vehicles. Each city and county in
California receive a portion, based on population,
of the total motor vehicle license fees collected by
the State. In 2004, the State reduced local
government allocation from 2.0% to 0.67%. The
difference of 1.33% was a swap for local property
tax, now known as Property Tax in Lieu of VLF.

OBJECTIVES - The expected results or
achievements of a budget activity which can be
measured and achieved within a given time frame.

Achievement of the objective advances the
organization towards a corresponding goal.

OPERATING BUDGET - Annual appropriation
of funds for on-going program costs, including
247
GLOS- 5
salaries and benefits, services and supplies, debt
service and capital outlay.

ORDINANCE - A formal legislative enactment by
the City Council. It has the full force and effect of
law within City boundaries unless preempted by a
higher form of law. An ordinance has a higher legal
OTHER EXPENDITURES- This category
reflects transfer outs of the General Fund and excise
tax settlement payments. Transfers are used to
move funds to other operating funds in order to
finance the operations of another fund or to
reimburse the other fund for certain services
provided to the General Fund.

OTHER FINANCING SOURCES -
Governmental fund general long-term debt
proceeds, amounts equal to the present value of
minimum lease payments arising from capital
leases, proceeds from the sale of general fixed
assets, and operating transfers in.

OTHER FINANCING USES - Governmental
fund operating transfers out and the amount of
refunding bond proceeds deposited with the escrow
agent. Such amounts are classified separately from
expenditures on the governmental operating
statement.

OTHER REVENUES - This category includes
reimbursements from other government agencies,
interest earned on investments and contributions.

This category also includes some loan repayments
made to the General Fund, i.e., from the
Redevelopment Agency for budget purposes only.

OVERHEAD ALLOCATION - A methodology
for identifying and allocating overhead, (indirect)
costs incurred by central services departments to
the direct cost programs.

OVERSIGHT BOARD – this board provides
some oversight to the Successor Agency (see
definition) and has the fiduciary responsibility to
holders of enforceable obligations and the taxing
entities that benefit from the distribution of the
revenues, especially property tax revenue.

PERFORMANCE MEASURE- An annual
indicator of achievement or measures of prediction
for a program of work unit as defined in the
organization of the budget. Measures may be
expressed as a number count, fraction, or a percent
of achievement related to the size of the problem or
service being provided.

PERMITS, FEES AND CHARGES FOR
SERVICES- This category includes the City’s
charges and fees for licenses and permits issued by
the City; as well as, the community development
services of staff, provided to customers. The
license and permit revenues are designed to
reimburse the City for costs of regulating the
activities being licensed. Fees and charges for
services are imposed to support services provided
to individuals and businesses.

PERS - Public Employees’ Retirement System.

P.O.S.T - Peace Officer Standards and Training - a
State reimbursement program for Police Officer
Training.

PROPERTY TAX - Homes, businesses, and other
taxable real and personal property are subject to a
property tax rate of 1% of assessed value. Since
Proposition 13 was enacted in 1978, the assessed
valuation of real property in the “base year” of
1975-1976 may increase each year by the change in
the Consumer Price Index (CPI), not to exceed 2%
as long as it is held by the same owner. When there
is a transfer of property ownership, or when
property is newly constructed, it is reappraised at its current full market value. The property tax is
imposed on real property (land and permanently
attached improvements such as buildings) and
tangible personal property (movable property)
located within the state. By definition, this ad
valorem tax is based on the property value, as
defined in law, rather than on a fixed amount or
benefit.

ADOPTED BUDGET - The financial and
operating document submitted by the City Manager
to the City Council for consideration.

PROPOSITION 13 - Article XIIIA of the
California Constitution, commonly known as
Proposition 13, which limits the maximum annual
increase of any ad valorem tax on real property to
1% of the full cash value of such property.

PURCHASED SERVICES - This category covers
a wide-range of services such as consulting
services, outside professional, legal, and auditing
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GLOS- 6
services, county services, i.e., supplemental police
patrol, and animal control services; City facilities
maintenance services, etc.

RDA - Redevelopment Agency.

RECEIVABLES-REDEVELOPMENT
AGENCY- This receivable sets out amounts due
the City from the Redevelopment Agency making
those funds unavailable for appropriations until
received.

REGULAR POSTISION - Any permanent
position in the classified service that is required to
be filled through certification, or by provisional
appointment.

REIMBURSEMENT FOR STATE
MANDATED COSTS - Article XIIIB, Section 6
of the California Constitution which requires the
State to reimburse local agencies for the cost of
state-imposed programs. Process is commonly
called “SB 90” after its original 1972 legislation.

RESERVE - An account used to record a portion
of the fund balance as legally segregated for a
specific use, usually at a future time.

RESOLUTION - A special order of the City
Council which has a lower legal standing than an
ordinance.

REVENUES - Monies received or anticipated by a
local government from both tax and non-tax
sources during the fiscal year.

SALARIES AND BENEFITS - This major
category accounts for full-time and part-time
employees, overtime expenses and all employee
benefits, such as medical, dental, retirement, life
insurance, long term disability, and workers
compensation. Where applicable, uniform
allowance is also included in this category.

SALES TAX - This tax is levied on goods and
services at the point-of-sale. Sales tax in San Mateo
County is 8.25% of which approximately 1% is
returned to East Palo Alto for those sales which take
place in East Palo Alto.

SB 90 - Reimbursement process for state mandated
costs, named after its original 1972 legislation.

SERVICE CHARGES - Charges imposed to
support services to individuals or to cover the cost
of providing such services. The fees charged are
limited to the cost of providing the service or
regulation required (plus overhead).

SERVICES - Expenditures/expenses for services.

SINGLE AUDIT - An audit performed in
accordance with the Single Audit Act of 1984 and
the Office of Management & Budget (OMB)
Circular A-128, Audits of State and Local
Governments. The Single Audit Act allows or
requires governments (depending on the amount of
federal assistance received) to have one audit
performed to meet the needs of the federal agencies.

SPECIAL REVENEUE FUND - A fund used to
account for the proceeds of specific revenue
sources (other than expendable trusts or major
capital projects) that are legally restricted to
expenditure for specific purposes. GAAP only
require the use of special revenue funds when
legally mandated.

SUCCESSOR AGENCY – designated as the
entity to the former redevelopment agency. The
agency is given the authority, rights, powers,
duties, and obligations previously provided to the
former redevelopment agency under the
Community Redevelopment Law, except for those
that were repealed, restricted or amended in
Assembly Bill 1X26. The purpose of the agency
are 1)make payments on the redevelopment
agency’s enforceable obligations; and 2)wind
down the activities of the redevelopment agency.

SUPPLEMENTAL PROPERTY TAX - In the
event a property changes ownership, the county
collects a supplemental property tax assessment in
the current tax year by determining a supplemental
value. In future tax periods, the property carries the
full cash value.

SUPPLIES AND MATERIALS - This category
of expenses relates to supplies needed and required
to operate as a cost of doing business. Some of the
major supplies consist of general office supplies,
safety supplies, utilities and fuel for City vehicles,
etc.
249
GLOS- 7
TAX - Compulsory charge levied by a government
for the purpose of financing services performed for
the common benefit.

TAX ALLOCATED BONDS - Bonds issued by
redevelopment agencies to revitalize blighted and
economically depressed areas of the community
and to promote economic growth.

TAX BASE - The objects or transactions to which
a tax is applied (e.g., parcels of property, retail
sales, etc.). State law or local ordinances define the
tax base and the objects or transactions exempted
from taxation.

TAX INCREMENT FINANCING - A tax
incentive designed to attract business investment by
dedicating to the project area the new property tax
revenues generate by redevelopment. The increase
in revenues (increment) is used to finance
development-related costs in that district.

TAX RATE - The amount of tax applied to the tax
base. The rate may be flat, incremental or a
percentage of the tax base, or any other reasonable
method.

TEMPORARY POSITION - A non-regular,
temporary position created to meet a peak workload
or other unusual work situation; can include
seasonal or recurrent intermittent employment.

TRANSIENT OCCUPANCY TAX (TOT) - This
is a general tax imposed on occupants for the
privilege of occupying rooms in hotels, motels,
inns, or other lodging facilities for 30 days or less.

The current tax rate in East Palo Alto is 12%. Of
the total tax anticipated to be received by the City,
there is a 10% set-aside for children, youth, senior
and families services and another 10% for housing
services for the residents of East Palo Alto.

TRUST FUNDS - Funds used to account for assets
held by a government in a trustee capacity for
individuals, private organizations, other
governments and/or other funds.

UNDESIGNATED FUND BALANCE - The City
will maintain an Undesignated General Fund
Balance to help mitigate the effects of such
unanticipated situations as the following:
a) Economic downturns
b) Loss of revenues to or imposition of
additional costs by other
governmental agencies
c) Errors in financial forecasting
d) Natural disasters
UNRESERVED FUND BALANCE - That
portion of a fund balance available for spending or
appropriation in the future.

UTILITY USER’S TAX - This tax is imposed on
the consumer (residential or commercial) of utilities
– electric, gas, cable television, and telephone
services. The current tax rate is 5%. The tax is
collected by the companies providing the service as
part of their billing process and is issued to the City.

VLF - See Motor Vehicle In-Lieu Fee.
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251

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253
General Fund and
Internal Reserves
Special
Revenue
Funds
Capital
Improvement
Funds
Enterprise Funds City Total Successor
Trust Fund GRAND TOTAL
Revenues
Property Tax 17,006,190 1,091,236 - 1,609,934 19,707,361 3,528,516 23,235,877 Sales Tax 5,827,100 - - - 5,827,100 - 5,827,100
Transient Occupancy Tax 2,200,000 550,000 - - 2,750,000 - 2,750,000 Business License Tax 830,000 1,620,690 - - 2,450,690 - 2,450,690 Utility User Tax 2,160,558 - - - 2,160,558 - 2,160,558
Other Taxes 140,000 3,402,554 - - 3,542,554 - 3,542,554 Licenses, Fees, and Permits 1,725,334 1,502,715 2,771,335 3,745,266 9,744,650 - 9,744,650 Charges for Services 2,206,280 142,600 - 10,021,571 12,370,451 - 12,370,451 Fines and Forfeitures 632,500 - - - 632,500 - 632,500
Use of Money and Property 1,941,764 1,415,764 791,556 1,679,787 5,828,871 58,248 5,887,119 Grants and Intergovernmental 65,000 1,248,100 1,230,000 - 2,543,100 - 2,543,100 Other Miscellaneous 613,800 - - 303,333 917,133 - 917,133 Total Revenues 35,348,525 10,973,659 4,792,892 17,359,891 68,474,967 3,586,764 72,061,731 Expenditures
City Council 261,352 - - 7,500 268,852 - 268,852
City Attorney 1,617,805 10,700 - 50,600 1,679,105 1,400 1,680,505 City Clerk 667,379 - - - 667,379 - 667,379
City Manager 5,350,822 1,290,000 - - 6,640,822 - 6,640,822 Finance 1,928,635 8,488 72,832 73,500 2,083,455 30,374 2,113,830 Community Development 3,544,234 18,724,499 - - 22,268,732 - 22,268,732 Public Works 6,760,504 2,191,071 170,459 6,209,892 15,331,926 - 15,331,926 Police 17,583,877 200,000 - - 17,783,877 - 17,783,877
Non-Departmental
Capital/Technology 1,158,000 2,800,000 2,285,000 3,075,000 9,318,000 - 9,318,000 Debt Service - - - - - - -
Insurance and Settlements 1,123,373 - - - 1,123,373 - 1,123,373 IT Operations 495,864 - 15,040 510,904 - 510,904
Other Non-Departmental 1,463,932 112,561 - 3,627,640 5,204,133 5,027,985 10,232,118 Overhead Allocation (2,860,620) 925,618 198,832 1,727,128 (9,042) 9,041 - Total Expenditures 39,095,159 26,262,936 2,727,123 14,786,300 82,871,517 5,068,801 87,940,319 Net Sources / (Uses) (3,746,633) (15,289,277) 2,065,769 2,573,591 (14,396,550) (1,482,037) (15,878,587) Other Financing Sources / (Uses)
Transfers In - 989,268 - - 989,268 - 989,268
Transfers Out (989,268) - - - (989,268) - (989,268)
Net Operating Transfers (989,268) 989,268 - - - - -
Change in Fund Balance (4,735,901) (14,300,009) 2,065,769 2,573,591 (14,396,550) (1,482,037) (15,878,587) Other Changes - - - - - - -
Projected Fund Balance
July 01, 2026 Balance* 17,881,000 37,832,000 17,639,000 37,225,000 110,577,000 (13,944,032) 96,632,968 June 30, 2027 Balance 14,303,099 23,531,991 19,704,769 39,798,591 96,180,450 (15,426,069) 80,754,381 *Excludes certain assets, reserves, and commitments.

CITY OF EAST PALO ALTO
FY 2026-2027 BUDGET BY FUND CATEGORY
254
General Fund
F110
Info Services
Reserve
F111
Equipment and
Vehicle Reserve
F112
Insurance
Reserve
F113
Development
Pass Through
F117
Eliminating Total
Revenues
Property Tax 17,006,190 - - - - - 17,006,190
Sales Tax 5,827,100 - - - - - 5,827,100
Transient Occupancy Tax 2,200,000 - - - - - 2,200,000
Business License Tax 830,000 - - - - - 830,000
Utility User Tax 2,160,558 - - - - - 2,160,558
Other Taxes 140,000 - - - - - 140,000
Licenses, Fees, and Permits 1,725,334 - - - - - 1,725,334 Charges for Services 2,206,280 - - - - - 2,206,280
Fines and Forfeitures 632,500 - - - - - 632,500
Use of Money and Property 1,941,764 - - - - - 1,941,764 Grants and Intergovernmental 65,000 - - - - - 65,000
Other Miscellaneous - - - - 613,800 - 613,800
Total Revenues 34,734,725 - - - 613,800 - 35,348,525
Expenditures
City Council 253,852 7,500 - - - - 261,352
City Attorney 1,412,805 - - 125,000 80,000 - 1,617,805
City Clerk 552,701 114,678 - - - - 667,379
City Manager 4,915,078 435,744 - - - - 5,350,822
Finance 1,854,021 74,614 - - - - 1,928,635
Community Development 3,019,318 54,916 - - 470,000 - 3,544,234 Public Works 6,342,101 68,403 350,000 - - - 6,760,504
Police 17,081,633 302,244 200,000 - - - 17,583,877
Non-Departmental
Major Capital/Technology - 1,158,000 - - - - 1,158,000
Insurance and Settlements - - - 1,123,373 - - 1,123,373 IT Operations - 495,864 - - - - 495,864
Other Non-Departmental 1,463,932 - - - - - 1,463,932
Overhead Allocation (2,356,166) (327,897) - (176,557) - - (2,860,620) Total Expenditures 34,539,277 2,384,066 550,000 1,071,816 550,000 - 39,095,159 Net Sources / (Uses) 195,449 (2,384,066) (550,000) (1,071,816) 63,800 - (3,746,633) Other Financing Sources / (Uses)
Transfers In - 1,226,066 550,000 1,071,816 - (2,847,882) - Transfers Out (3,837,150) - - - - 2,847,882 (989,268)
Net Operating Transfers (3,837,150) 1,226,066 550,000 1,071,816 - - (989,268) Change in Fund Balance (3,641,701) (1,158,000) - - 63,800 - (4,735,901) Other Changes 63,800 - - - (63,800) - -
Projected Fund Balance
July 01, 2026 Balance* 17,881,000 3,853,000 687,000 2,273,000 - (6,813,000) 17,881,000 June 30, 2027 Balance 14,303,099 2,695,000 687,000 2,273,000 - (6,813,000) 14,303,099 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 GENERAL FUND BUDGET
255
Community
Programs
Housing
Programs
Transportation and
Infrastructure
Programs
Total
Revenues
Property Tax - - 1,091,236 1,091,236
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 1,725,554 3,402,554
Licenses, Fees, and Permits - 1,502,715 - 1,502,715
Charges for Services - 2,600 140,000 142,600
Fines and Forfeitures - - - -
Use of Money and Property 89,424 669,960 656,379 1,415,764 Grants and Intergovernmental 138,100 - 1,110,000 1,248,100 Other Miscellaneous - - - -
Total Revenues 502,524 5,747,965 4,723,170 10,973,659
Expenditures
City Council - - - -
City Attorney - 10,700 - 10,700
City Clerk - - - -
City Manager 1,290,000 - - 1,290,000
Finance - 2,496 5,992 8,488
Community Development 49,044 18,675,455 - 18,724,499
Public Works 123,563 - 2,067,508 2,191,071
Police 200,000 - - 200,000
Non-Departmental - - - -
Capital/Technology - - 2,800,000 2,800,000
Insurance and Settlements - - - -
IT Operations - - - -
Other Non-Departmental - 14 112,547 112,561
Overhead Allocation 9,236 381,785 534,597 925,618
Total Expenditures 1,671,843 19,070,449 5,520,643 26,262,936 Net Sources / (Uses) (1,169,319) (13,322,484) (797,474) (15,289,277) Other Financing Sources / (Uses)
Transfers In - - 989,268 989,268
Transfers Out - - - -
Net Operating Transfers - - 989,268 989,268
Change in Fund Balance (1,169,319) (13,322,484) 191,794 (14,300,009) Other Changes - - - -
Projected Fund Balance
July 01, 2026 Balance* 2,867,000 17,852,000 17,113,000 37,832,000 June 30, 2027 Balance 1,697,681 4,529,516 17,304,794 23,531,991 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 SPECIAL REVENUE FUNDS BUDGET
256
Public Safety
Grants
F213
Federal and
State Grants
F215
Local
Grants
F230
CYSFF
TOT
F231
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 14,526 8,949 23,779 42,170 89,424 Grants and Intergovernmental 100,000 38,100 - - 138,100 Other Miscellaneous - - - - -
Total Revenues 114,526 47,049 23,779 317,170 502,524
Expenditures
City Council - - - - -
City Attorney - - - - -
City Clerk - - - - -
City Manager - - 590,000 700,000 1,290,000
Finance - - - - -
Community Development - - 49,044 - 49,044
Public Works - - 123,563 - 123,563
Police 200,000 - - - 200,000
Non-Departmental - - -
Capital/Technology - - - - -
Insurance and Settlements - - - - -
IT Operations - - - - -
Other Non-Departmental - - - - -
Overhead Allocation - - - 9,236 9,236
Total Expenditures 200,000 - 762,607 709,236 1,671,843
Net Sources / (Uses) (85,474) 47,049 (738,828) (392,066) (1,169,319) Other Financing Sources / (Uses)
Transfers In - - - - -
Transfers Out - - - - -
Net Operating Transfers - - - - -
Change in Fund Balance (85,474) 47,049 (738,828) (392,066) (1,169,319) Other Changes - - - - -
Projected Fund Balance
July 01, 2026 Balance* 674,000 1,423,000 47,000 723,000 2,867,000 June 30, 2027 Balance 588,526 1,470,049 (691,828) 330,934 1,697,681 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 COMMUNITY PROGRAMS BUDGET
257
Rent
Stabilization
F204
Inclusionary
Housing
F205
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 852,390 650,325 - - - - - - - - 1,502,715 Charges for Services 2,600 - - - - - - - - - 2,600
Fines and Forfeitures - - - - - - - - - - -
Use of Money and Property 17,352 - 311,233 12,870 - 68,208 209,093 48,235 2,970 - 669,960 Grants and Intergovernmental - - - - - - - - - - -
Other Miscellaneous - - - - - - - - - - -
Total Revenues 872,342 650,325 311,233 12,870 - 343,208 1,886,093 48,235 2,970 1,620,690 5,747,965 Expenditures
City Council - - - - - - - - - - -
City Attorney - - - - - - - 10,700 - - 10,700
City Clerk - - - - - - - - - - -
City Manager - - - - - - - - - - -
Finance - - - - - - 2,496 - - - 2,496
Community Development 649,097 12,200 6,130,275 6,480 - 1,868,775 8,369,847 129,742 - 1,509,039 18,675,455 Public Works - - - - - - - - - - -
Police - - - - - - - - - - -
Non-Departmental
Capital/Technology - - - - - - - - - - -
Insurance and Settlements - - - - - - - - - - -
IT Operations - - - - - - - - - - -
Other Non-Departmental - - - - - - 14 - - - 14
Overhead Allocation 354,148 - 10,728 9,206 - 7,704 - - - - 381,785 Total Expenditures 1,003,245 12,200 6,141,002 15,686 - 1,876,479 8,372,357 140,442 - 1,509,039 19,070,449 Net Sources / (Uses) (130,903) 638,125 (5,829,770) (2,816) - (1,533,271) (6,486,264) (92,207) 2,970 111,651 (13,322,484) Other Financing Sources / (Uses)
Transfers In - - - - - - - - - - -
Transfers Out - - - - - - - - - - -
Net Operating Transfers - - - - - - - - - -
Change in Fund Balance (130,903) 638,125 (5,829,770) (2,816) - (1,533,271) (6,486,264) (92,207) 2,970 111,651 (13,322,484) Other Changes - - - - - - - - - - -
Projected Fund Balance
July 01, 2026 Balance* 306,000 - 5,409,000 401,000 (42,000) 2,642,000 8,273,000 514,000 135,000 214,000 17,852,000 June 30, 2027 Balance 175,097 638,125 (420,770) 398,184 (42,000) 1,108,729 1,786,736 421,793 137,970 325,651 4,529,516 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 HOUSING PROGRAMS BUDGET
258
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 - - - - 919,058 172,179 - 1,091,236
Sales Tax - - - - - - - -
Transient Occupancy Tax - - - - - - - -
Business License Tax - - - - - - - -
Utility User Tax - - - - - - - -
Other Taxes 1,725,554 - - - - - - 1,725,554
Licenses, Fees, and Permits - - - - - - - -
Charges for Services - - 140,000 - - - - 140,000
Fines and Forfeitures - - - - - - - -
Use of Money and Property 147,084 207,015 13,854 12,104 199,851 38,197 38,273 656,379 Grants and Intergovernmental - 770,000 - - - - 340,000 1,110,000 Other Miscellaneous - - - - - - - -
Total Revenues 1,872,638 977,015 153,854 12,104 1,118,909 210,376 378,273 4,723,170 Expenditures
City Council - - - - - - - -
City Attorney - - - - - - - -
City Clerk - - - - - - - -
City Manager - - - - - - - -
Finance - 1,846 2,300 - - - 1,846 5,992
Community Development - - - - - - - -
Public Works 789,176 - 816,509 - 236,154 225,668 - 2,067,508 Police - - - - - - - -
Non-Departmental
Capital/Technology 2,000,000 550,000 - - - - 250,000 2,800,000 Insurance and Settlements - - - - - - - -
IT Operations - - - - - - - -
Other Non-Departmental 94,272 - 10,461 - 6,098 1,716 - 112,547 Overhead Allocation 171,356 54,574 164,981 1,107 55,942 67,363 19,274 534,597 Total Expenditures 3,054,804 606,420 994,251 1,107 298,194 294,747 271,120 5,520,643 Net Sources / (Uses) (1,182,166) 370,594 (840,397) 10,997 820,715 (84,371) 107,153 (797,474) Other Financing Sources / (Uses)
Transfers In 64,500 - 840,397 - - 84,371 - 989,268
Transfers Out - - - - - - - -
Net Operating Transfers 64,500 - 840,397 - - 84,371 - 989,268 Change in Fund Balance (1,117,666) 370,594 - 10,997 820,715 - 107,153 191,794 Other Changes - - - - - - - -
Projected Fund Balance
July 01, 2026 Balance* 4,253,000 5,533,000 95,000 395,000 3,707,000 1,235,000 1,895,000 17,113,000 June 30, 2027 Balance 3,135,334 5,903,594 95,000 405,997 4,527,715 1,235,000 2,002,153 17,304,794 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 INFRASTRUCTURE PROGRAMS BUDGET
259
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 - 641,916 1,125,741 737,123 - 266,555 2,771,335 Charges for Services - - - - - - -
Fines and Forfeitures - - - - - - -
Use of Money and Property 723,117 12,381 22,200 14,407 8,257 11,193 791,556 Grants and Intergovernmental 1,230,000 - - - - - 1,230,000 Other Miscellaneous - - - - - - -
Total Revenues 1,953,117 654,297 1,147,941 751,531 8,257 277,748 4,792,892 Expenditures
City Council - - - - - - -
City Attorney - - - - - - -
City Clerk - - - - - - -
City Manager - - - - - - -
Finance 72,832 - - - - - 72,832
Community Development - - - - - - -
Public Works 170,459 - - - - - 170,459
Police - - - - - - -
Non-Departmental
Capital/Technology 2,285,000 - - - - - 2,285,000
Insurance and Settlements - - - - - - -
IT Operations - - - - - -
Other Non-Departmental - - - - - - -
Overhead Allocation 188,608 2,178 2,178 2,289 1,919 1,661 198,832 Total Expenditures 2,716,898 2,178 2,178 2,289 1,919 1,661 2,727,123 Net Sources / (Uses) (763,780) 652,119 1,145,763 749,242 6,338 276,087 2,065,769 Other Financing Sources / (Uses)
Transfers In - - - - - - -
Transfers Out - - - - - - -
Net Operating Transfers - - - - - - -
Change in Fund Balance (763,780) 652,119 1,145,763 749,242 6,338 276,087 2,065,769 Other Changes - - - - - - -
Projected Fund Balance
July 01, 2026 Balance* 15,789,000 272,000 187,000 613,000 385,000 393,000 17,639,000 June 30, 2027 Balance 15,025,220 924,119 1,332,763 1,362,242 391,338 669,087 19,704,769 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 CAPITAL PROJECT FUNDS BUDGET
260
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 - - - - - - 1,609,934 - 1,609,934
Sales Tax - - - - - - - - -
Transient Occupancy Tax - - - - - - - - -
Business License Tax - - - - - - - - -
Utility User Tax - - - - - - - - -
Other Taxes - - - - - - - - -
Licenses, Fees, and Permits - - - 1,205,036 1,205,036 - 40,230 2,500,000 3,745,266 Charges for Services 10,000 1,250,000 - - 1,260,000 3,461,565 5,300,006 - 10,021,571 Fines and Forfeitures - - - - - - - - -
Use of Money and Property 536,795 396,577 56,358 20,504 1,010,233 78,513 517,638 73,403 1,679,787 Grants and Intergovernmental - - - - - - - - -
Other Miscellaneous - 23,333 - - 23,333 280,000 - - 303,333 Total Revenues 546,795 1,669,910 56,358 1,225,540 3,498,602 3,820,078 7,467,808 2,573,403 17,359,891 Expenditures
City Council - - - - - - 7,500 - 7,500
City Attorney 7,000 - - - 7,000 - 43,600 - 50,600
City Clerk - - - - - - - - -
City Manager - - - - - - - - -
Finance - - - - - 2,300 71,200 - 73,500
Community Development - - - - - - - - -
Public Works 168,766 5,000 - - 173,766 344,230 5,691,896 - 6,209,892 Police - - - - - - - - -
Non-Departmental -
Capital/Technology - 380,000 - - 380,000 - 2,695,000 - 3,075,000 Insurance and Settlements - - - - - - - - -
IT Operations - - - - - - 15,040 - 15,040
Other Non-Departmental 18,111 - - - 18,111 3,609,529 - - 3,627,640 Overhead Allocation 188,406 56,353 7,590 2,732 255,081 243,210 1,228,837 - 1,727,128 Total Expenditures 382,283 441,353 7,590 2,732 833,958 4,199,269 9,753,073 - 14,786,300 Net Sources / (Uses) 164,512 1,228,556 48,767 1,222,809 2,664,644 (379,191) (2,285,265) 2,573,403 2,573,591 Other Financing Sources / (Uses)
Transfers In - - - - - - - - -
Transfers Out - - - - - - - - -
Net Operating Transfers - - - - - - -
Change in Fund Balance 164,512 1,228,556 48,767 1,222,809 2,664,644 (379,191) (2,285,265) 2,573,403 2,573,591 Other Changes - - - - - - - - -
Projected Fund Balance
July 01, 2026 Balance* 2,961,000 11,075,000 1,638,000 (4,026,000) 11,648,000 1,570,000 23,843,000 164,000 37,225,000 June 30, 2027 Balance 3,125,512 12,303,556 1,686,767 (2,803,191) 14,312,644 1,190,809 21,557,735 2,737,403 39,798,591 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2026-2027 ENTERPRISE FUNDS BUDGET
261
This Page Intentionally Left Blank
262
Table of Contents………………………..……………………………. i
Detailed Budget Information by Division
City Manager's Office
City Manager's Office………………………..……………………DB- 5
Human Resources…………….…………………………….………DB- 7
Community Services and Recreation…………….…………………DB- 9
Senior Services…………….…………………………….…………DB- 11
Information Technology Operations…………….…………………DB- 13
Community and Economic Development
Administration………...……………………………………………DB- 15
Building Services……...………………….…………………………DB- 17
Planning…….…………………..……………………..………..… DB- 19
Housing and Economic Development……………..…...……..……DB- 21 Rent Stabilization……………..…...……..…………………………DB- 23
Finance Department……………………..………..…………..………DB- 25
Non Departmental…………………………………………………… DB- 27
Police Department
Administration………………………………………………………DB- 31
Operations………………………………………………………… DB- 35
Investigations………………………………………………………DB- 37
City Attorney's Office……….…….….......…...……………….………DB- 39 City Clerk's Office……..........…....…................................................ DB- 41 City Council…………………..…….….……………………..……… DB- 43
Public Works
Administration….……………………………....………………… DB- 45
Environmental……………………………….....………………….DB- 47
Engineering……………………………….....…………………...…DB- 49
Maintenance……………………………….....……………………DB- 51
East Palo Alto Sanitary District……………………………….....…DB- 57 Table of Contents
i
263
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Manager's Office / Administration (11111) Fund Adopted FY 26 Adopted FY 27
53101 Staff Augmentation
110 ▲ Additional Staffing for Special Projects 130,000 65,000 110 Staff Augmentation - -
Subtotal 130,000 65,000
53201 Professional and Technical Services
110 Citywide Lobbying Efforts 165,000 166,500
110 CM Discretionary Fund 20,000 22,500
110 ▲ ★ Community Surveying/Financial Growth Efforts 125,000 45,000 110 ▲ ★ Design and Implement a "Pop-Up"/Sidewalk Vending Policy and Program 18,000 10,000 110 Economic Development Strategic Plan 120,000 -
110 Emergency Planning and Development 60,000 -
110 ▲ ★ Emergency Planning and Development 100,000 60,000 110 Financial growth efforts - NEW 75,000 -
110 Management Consultant for Leadership Development - NEW 40,000 - 110 Performance Auditors 200,000 200,000
110 Policy Development 25,000 25,000
110 Property Due Diligence 50,000 -
110 ▲ ★ Economic Development Support 27,000 100,000
111 ▲ ★ IT Master Plan 100,000 10,000
111 Other Professional & Technical - -
Subtotal 1,125,000 639,000
54990 Other Property Services
110 Wilbur Properties (Gateway) 16,000 15,000
Subtotal 16,000 15,000
55400 Advertising/Notices
110 Advertising/Notices 2,500 2,500
Subtotal 2,500 2,500
55410 Printing and Binding
110 Printing and Binding 5,000 2,000
Subtotal 5,000 2,000
55600 Meeting and Catering
110 City Manager's Office and Department Head retreats 3,000 3,000 110 City Wide Events - 7,500
Subtotal 3,000 10,500
55800 Transportation and Training
110 ACM Professional Development 3,000 3,000
110 Assistant to the City Manager Professional Development 4,000 4,000 110 City Manager Professional Development 3,000 3,000
110 Executive Assistant to the City Manager Training 2,000 2,000 110 League of CA Cities Annual Conference 3,600 3,600
110 Washington DC Trip 5,000 5,000
Subtotal 20,600 20,600
55910 Memberships/ Dues
110 ICMA 2,400 2,400
110 Leadership Council San Mateo County 2,800 2,800
110 Miscellaneous 900 900
110 MMANC 500 1,000
110 Sillicon Valley Business Journal 200 200
110 SVEDA 2,500 2,500
Subtotal 9,300 9,800
55920 Community Meetings
110 Community Meetings 4,000 4,000
Subtotal 4,000 4,000
55990 Other Services
110 ▲ ★ Implement a Shopping Cart Abatement Program 2,000 2,000 Subtotal 2,000 2,000
Detail
DB-5
264
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Manager's Office / Administration (11111) Fund Detail Adopted FY 26 Adopted FY 27
60301 General Office Supplies
110 General Office Supplies 5,000 2,000
Subtotal 5,000 2,000
60208 Fuel
110 Fuel - 500
Subtotal - 500
60302 Postage and Delivery
110 Postage and Delivery 3,000 3,000
Subtotal 3,000 3,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 1,325,400 775,900 DB-6
265
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Manager's Office / Human Resources (11113) Fund Adopted FY 26 Adopted FY 27
53120 County Services
110 Livescan and other professional services - 500
Subtotal - 500
53201 Professional and Technical Services
110 Compensation and Salary Study 100,000 -
110 Recruitment marketing 5,000 5,000
110 EEOC Potential Claims (Consultant Support) 100,000 100,000 110 Classification (FEHA/ADA) Study 80,000 100,000
Subtotal 285,000 205,000
53202 Medical Services
110 Pre-employmemt Physical & Drug Testing 30,000 30,000 110 Livescan (DOJ) 20,000 20,000
Subtotal 50,000 50,000
55400 Advertising/Notices
110 Advertising/Notices 5,000 -
Subtotal 5,000 -
55410 Printing and Binding
110 Printing and Binding 3,000 -
Subtotal 3,000 -
55600 Meeting and Catering
110 December Holiday Party 3,000 3,000
110 Halloween/Benefit Fair 1,200 1,200
110 HR Orientation 2,000 2,000
110 Miscellaneous 12,800 -
110 Recruitments/Full Day Panels 1,000 3,800
Subtotal 20,000 10,000
55800 Transportation and Training
110 CALPELRA Conference Californa Public Employer Labor Relations Assoc. 10,000 10,000 110 Caselle 3,500 3,500
110 LCW - City wide 6,500 6,500
110 PARMA - City wide 5,000 5,000
110 SHRM 5,000 5,000
Subtotal 30,000 30,000
55910 Memberships/ Dues
110 Cal-ICMA 800 800
110 CALOPPS - Application Tracking System 4,200 4,200
110 CALPELRA - Annual Membership 2,410 2,410
110 HR Association of San Mateo County (HRA) 625 625
110 PARMA 1,800 1,800
110
Regional Training & Development Consortium For Public Agencies CALOPPS - Application Tracking System 965 965
110
San Mateo County Employment Relations Consortium - (LCW) Liebert Cassidy Whitmore 3,000 3,000
110 Society of Human Resources Management (SHRM) 1,200 1,200 Subtotal 15,000 15,000
55920 Special Events
110 December Holiday Party 2,000 2,000
110 Employee Picnic 2,500 2,500
110 Halloween/Benefit Fair 500 500
110 Health & Wellness Efforts 2,000 2,000
110 Other Employee appreciation efforts/events 8,000 8,000 Subtotal 15,000 15,000
60201 Reference/Text Sets/Subscripti
110 Reference/Text Sets/Subscripti 1,500 -
Subtotal 1,500 -
Detail
DB-7
266
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Manager's Office / Human Resources (11113) Fund Detail Adopted FY 26 Adopted FY 27
60203 Safety Supplies
110 Refresh Safety Backpacks 3,000 3,000
Subtotal 3,000 3,000
60301 General Office Supplies
110 General Office Supplies 10,000 15,000
Subtotal 10,000 15,000
60302 Postage and Delivery
110 Postage and Delivery 300 500
Subtotal 300 500
70410 Furniture & Equipment
110 ▲ Citywide Ergonomics Refresh 150,000 15,000
Subtotal 150,000 15,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 587,800 359,000 DB-8
267
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Manager's Office / Community Services (14142) Fund Adopted FY 26 Adopted FY 27
53201 Professional and Technical Services
110 Establish a Joint-Use Agreement with RCSD for Shared Recreation Sites 50,000 - 110 Park - AV Improvements 60,000 -
110 Park - Pilot Dog Park 75,000 -
110 Park - Scoreboards 30,000 -
110 Park - Shading 95,000 -
110 Project Management Park (15%) 45,000 -
221 Park - Cameras 300,000 -
221 Park - Lighting for Safety 250,000 -
221 Park - Sports lighting 950,000 -
221 Park Project manager (85%) 255,000 -
Subtotal 2,110,000 -
54240 Building Maintenance
110 Maintenance - 100
Subtotal - 100
54250 Landscape/Park Maintenance
110 Landscaping for Publicly owned space - NEW - 125,000 Subtotal - 125,000
54260 Vehicle Maintenance Service
110 Maintenance Services- for 3 vehicles 4,000 3,000
Subtotal 4,000 3,000
55300 Communications
110 Communications - 5,000
Subtotal - 5,000
55400 Advertising/Notices
110 Advertising/Notices 3,500 5,000
Subtotal 3,500 5,000
55410 Printing and Binding
110 Printing and Binding 1,500 2,000
Subtotal 1,500 2,000
55600 Meeting and Catering
110 ⟳ Consultant Meetings 1,000 1,000
110 ▲★ Development of Youth Commission 4,000 4,000
Subtotal 5,000 5,000
55800 Transportation and Training
110 California Parks and Recreation Society (CPRS)or Trainings 4,500 4,500 110 National Recreation and Parks Association - 1,500
Subtotal 4,500 6,000
55910 Memberships/ Dues
110 California Parks and Recreation Society (CPRS) 500 500 110 National Parks & Recreation Association 2,000 300
Subtotal 2,500 800
55920 Special Events
110 Children's Day 8,000 8,000
110 Cinco de Mayo 8,000 8,000
110 Juneteenth 8,000 8,000
110 Multicultural Event 8,000 8,000
110 Summer Programs Park Activation, City Events & Celebrations 350,000 350,000 Subtotal 382,000 382,000
55990 Other Services
110 Other Services 5,000 -
Subtotal 5,000 -
60103 Equipment Maintenance Supplies
110 Equipment Maintenance Supplies 5,000 5,000
Subtotal 5,000 5,000
Detail
DB-9
268
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Manager's Office / Community Services (14142) Fund Detail Adopted FY 26 Adopted FY 27
60201 Reference/Text Sets/Subscriptions
111 Reference/Text Sets/Subscriptions 500 500
Subtotal 500 500
60202 Uniform & Safety Apparel
110 Uniform & Safety Apparel 1,000 3,000
Subtotal 1,000 3,000
60203 Safety Supplies
110 Safety Supplies - 2,000
Subtotal - 2,000
60205 Recreation Supplies
110 Recreation Supplies - 2,000
Subtotal - 2,000
60208 Fuel
110 Fuel 2,000 3,000
Subtotal 2,000 3,000
60209 Other Operating Supplies
110 Other Operating Supplies 2,500 -
Subtotal 2,500 -
60301 General Office Supplies
110 General Office Supplies 2,000 -
Subtotal 2,000 -
60302 Postage and Delivery
110 Postage - 3,000
Subtotal - 3,000
70420 Furniture & Equipment (Over $5000)
230 ▲ Stanford Grant for Lighting Equipment - Pending Grant 530,000 530,000 Subtotal 530,000 530,000
70510 Rolling Stock: Vehicles, Mower, etc.
230 ▲ Truck to move Lighting Equipment for Parks 60,000 60,000 Subtotal 60,000 60,000
80905 Grants
231 Child/Fam Grants 150,000 550,000
231 ⟳★ Youth Commission - 50,000
231 Adjustment for Council Recommendation 10,000 -
231 Expand EPACENTER Services and Programs Through City Funding 70,000 - 231 Expand Access to YMCA Programming and Services for the Greater East Palo Alto Community 175,000 - Subtotal 405,000 600,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 3,526,000 1,742,400 DB-10
269
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Manager's Office / Senior Services (14143) Fund Adopted FY 26 Adopted FY 27
53201 Professional and Technical Services
110 ▲ Meal Services - PVIC and Senior Center, Inc. 200,000 200,000 110 Consultant for Evaluation of Senior Center 80,000 - Subtotal 280,000 200,000
54260 Vehicle Maintenance Service
110 Vehicle Maintenance Service for Senior Bus 3,000 3,000 Subtotal 3,000 3,000
55400 Advertising Notices
110 Advertising Notices 1,500 -
Subtotal 1,500 -
55410 Printing and Binding
110 Printing and Binding 1,000 -
Subtotal 1,000 -
55600 Meeting and Catering
110 Senior Advisory Committee Meetings 3,000 3,000
Subtotal 3,000 3,000
55800 Transportation and Training
110 Driver Trainings/Requirements (DMV, Licensing) 800 500 110 Provider Meetings 400 200
110 ServSafe Certification 200 200
Subtotal 1,400 900
55910 Memberships/ Dues
110 California Association for Coordinated Transportation (CalACT) 750 750 Subtotal 750 750
55920 Special Events
110 Senior Tech Trainings - 50,000
110 Senior Events and Activities 50,000 25,000
Subtotal 50,000 75,000
60102 Vehicle Maintenance Supplies
110 Vehicle Maintenance Supplies for Senior Bus 2,500 1,500 Subtotal 2,500 1,500
60203 Safety Supplies
110 Safety Supplies 1,000 1,500
Subtotal 1,000 1,500
60208 Fuel
110 Fuel 5,500 -
Subtotal 5,500 -
60209 Other Operating Supplies
110 Senior Center Operating Costs - Bldg. Maint & Repair 4,500 4,500 Subtotal 4,500 4,500
60301 General Office Supplies
110 General Office Supplies 2,000 -
Subtotal 2,000 -
80905 Grants
231 Child/Fam Grants - Senior Inc. Grant 200,000 100,000 Subtotal 200,000 100,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 556,150 390,150 Detail
DB-11
270
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DB-12
271
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Manager's Office / IT Operations (95952) Fund Adopted FY 26 Adopted FY 27
53201 Professional and Technical Services
111 Shamrock Copier Solutions partner 12,000 20,000
Subtotal 12,000 20,000
54430 Equipment Lease and Rentals
111 Equipment Lease and Rentals 15,000 20,000
Subtotal 15,000 20,000
54440 Computer Software Lease
111 Adobe Acrobat Professional DC 8,000 9,000
111 ⟳ Barracuda 690 for on-premise backups (every 3yrs) 15,000 17,000 111 Barracuda Office 365 protection/backup 14,000 17,000 111 DocuSign 24,150 24,150
111 Endpoint Protection 3,000 5,000
111 MDM Solution 1,080 5,000
111 Microsoft (Office 365, AZURE p2, Server) 75,000 75,000 111 Multi-factor authentication 14,580 10,000
111 VMware 12,000 -
111 Zoom (Citywide) 10,000 10,000
Subtotal 176,810 172,150
55300 Communications
111 Phone - 11111 5,000 5,000
111 Phone - 12121 3,000 3,000
111 Phone - 13131 3,500 3,500
111 Phone - 14142 2,000 2,000
111 Phone - 21211 1,500 1,500
111 Phone - 21212 5,000 5,000
111 Phone - 21214 1,000 1,000
111 Phone - 31313 1,500 1,500
111 Phone - 31314 3,500 3,500
111 Phone - 31315 3,000 3,000
111 Phone - 31777 3,000 3,000
111 Phone -10101 2,300 2,300
111 Phone -11113 1,500 1,500
111 Services - Internet, VOIP 114,650 114,650
530 Communications 15,040 15,040
Subtotal 165,490 165,490
55800 Transportation and Training
111 Transportation and Training 5,000 10,000
Subtotal 5,000 10,000
70420 Furniture & Equipment (Over$5K)
111 Albert IDS (ongoing cost) 18,000 18,000
111 iPads - 31777 - 264
111 iPads - 31315 - 5,000
111 Cisco Switches* 86,400 -
111 Desktops/Laptops/Other Equipment 100,000 -
111 Desktop/Laptop refresh (25) - 50,000
111 Replacement Servers - 10,000
111 Firewalls (Tate, PD, Corp Yard) - 30,000
111 iPhone Replacement - 5,000
111 Others - Miscellaneous - 5,000
Subtotal 204,400 123,264
Detail
DB-13
272
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Manager's Office / IT Operations (95952) Fund Detail Adopted FY 26 Adopted FY 27
90310 Overhead Allocation
111 IT Overhead Allocation (184,160) (327,898)
201 IT Overhead Allocation 7,165 12,420
203 IT Overhead Allocation 14,664 25,422
204 IT Overhead Allocation 19,952 43,234
221 IT Overhead Allocation 908 1,574
222 IT Overhead Allocation 2,591 4,491
301 IT Overhead Allocation 4,988 8,647
510 IT Overhead Allocation 9,976 -
511 IT Overhead Allocation - 17,294
520 IT Overhead Allocation 23,188 40,198
530 IT Overhead Allocation 99,758 172,937
705 IT Overhead Allocation 970 1,681
Subtotal - -
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 578,700 510,904 DB-14
273
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : CED / Administration (31311)
Fund Adopted FY 26 Adopted FY 27
54440 Computer Software Lease
111 CRW TRAKiT (80%* $25,000) 20,000 20,000
Subtotal 20,000 20,000
54990 Other Property Services
110 HOA Cummings Loft 12,000 12,000
Subtotal 12,000 12,000
55400 Advertising/Notices
110 Advertising/ Notices 3,000 1,000
Subtotal 3,000 1,000
55410 Printing and Binding
110 Printing and Binding 1,500 500
Subtotal 1,500 500
55600 Meeting and Catering
110 Meeting and Catering, team buildings 500 1,500
Subtotal 500 1,500
55800 Transportation and Training
110 Housing California - Director 2,000 2,000
110 ICMA Annual Conference - Director/MA 6,000 6,000
110 Microsoft Suite basic skills training 500 500
110 MMANC Annual Conference 1,500 1,500
110 MMANC Women's Leadership Summit - MA 130 130
110 Management/Supervisory Academy - 3,500
110 Various workshops and conferences 500 500
Subtotal 10,630 14,130
55910 Memberships/ Dues
110 C/CAG 400 400
110 MMANC Membership 180 200
Subtotal 580 600
55920 Special Events
110 Staff Retreats/21 Elements/County Meetings 1,000 1,000 110 Team Building Efforts - 2,500
Subtotal 1,000 3,500
60201 Reference/Text Sets/Subscriptions
110 Reference/Text Sets/Subscriptions 500 500
Subtotal 500 500
60203 Safety Supplies
110 Safety Supplies 1,000 500
Subtotal 1,000 500
60301 General Office Supplies
110 General Office Supplies 4,500 6,500
110 ▲ Water Dispenser - 250
Subtotal 4,500 6,750
70410 Furniture & Equipment (Under $5000)
110 ▲ Cubicle Resources - 1,000
Subtotal 800 1,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 212,110 61,980 Detail
DB-15
274
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DB-16
275
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : CEDD / Building (31315)
Fund Adopted FY 26 Adopted FY 27
53101 Staff Augmentation
110 Proactive Code Enforcement efforts 150,000 -
Subtotal 150,000 -
53201 Professional and Technical Services
110 ADU Resource Center 34,000 34,000
110 Outside Plan Review, Inspections 333,333 -
Subtotal 367,333 34,000
54260 Vehicle Maintenance Service
110 Electric Vehicle Maintenance - 780
Subtotal - 780
54440 Computer Software Lease
111 Bluebeam (33%) 2,403 2,403
Subtotal 2,403 2,403
55400 Advertising/Notices
110 Advertising/Notices 5,000 3,000
Subtotal 5,000 3,000
55410 Printing and Binding
110 Printing and Binding 1,500 1,500
Subtotal 1,500 1,500
55600 Meeting and Catering
110 Building Safety Event 1,000 1,000
Subtotal 1,000 1,000
55800 Transportation and Training
110 ADA Coordinator Conference - Building Official 1,250 1,250 110 CALBO ABM - Building Official 5,000 5,000
110 CALBO Education Week - 2nd Permit Technician 1,550 1,550 110 CALBO Education Week - Building Inspector 1,300 1,300 110 CALBO Education Week - Chief Building Official 1,600 1,600 110 CALBO Education Week - Permit Technician 1,300 1,300 110 Certified Access Specialist (CASp) SB1608 & SB1186 - Building Official 1,500 1,500 110 ICC Conference - Building Official & Staff 5,000 5,000 110 PBIG/CALBIG/CACEO/ASCE/ACI/NFPA 2,500 2,500
Subtotal 21,000 21,000
55820 Tuition Reimbursement
110 Tuition Reimbursement 2,000 2,000
Subtotal 2,000 2,000
55910 Memberships/ Dues
110 Americans with Disabilities Act (ADA) Coordinator - Building Official/Building Inspector 300 300 110 California Access Specialist Institute - Building Official/Building Inspector 350 350 110 California Association of Code Enforcement Officers - All 400 400 110 California Building Inspectors Group - All 250 250
110 California Building Officials (CALBO) - Building Official/Staff 300 300 110 IAPMO - International Assoc. of Plumbing, Mechanical Officials - Building Official/Staff 400 400 110 International Code Council - Building Official/Staff 1,500 1,000 110 Tri-Chapter of ICC - Building Official 500 500
Subtotal 4,000 3,500
55920 Special Events
110 Meeting with Fire & Police 1,500 1,500
Subtotal 1,500 1,500
55990 Other Services
111 ▲ Inspection Software 24,000 24,000
Subtotal 24,000 24,000
60201 Reference/Text Sets/Subscriptions
110 Reference/Text Sets/Subscriptions 4,000 2,000
Subtotal 4,000 2,000
60202 Uniform & Safety Apparel
110 Uniform & Safety Apparel 3,500 3,500
Subtotal 3,500 3,500
Detail
DB-17
276
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : CEDD / Building (31315)
Fund Detail Adopted FY 26 Adopted FY 27
60203 Safety Supplies
110 Safety Supplies 3,000 3,000
Subtotal 3,000 3,000
60208 Fuel
110 Fuel 2,000 1,500
Subtotal 2,000 1,500
60302 Postage and Delivery
110 Postage and Delivery 650 650
Subtotal 650 650
70410 Furniture & Equipment (Under $5000)
110 ▲ Repairs - 1,000
111 iPad 5,500 -
Subtotal 10,000 1,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 602,886 106,333 DB-18
277
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : CEDD / Planning (31314)
Fund Adopted FY 26 Adopted FY 27
53101 Staff Augmentation
110 ▲★ Intern for GIS mapping 10,500 10,500
Subtotal 10,500 10,500
53130 Stipends
110 Planning Commission Stipends 7,900 6,000
Subtotal 7,900 6,000
53201 Professional and Technical Services
110 ▲★ General Plan Update, GIS Consultants, Outside On-Call Consultants, Specialist Code Advice 242,750 200,000 117 MCA CEQA Services 297,500 200,000
117 MCA Engineering - 210,000
117 Other MCA Planning Services 67,500 60,000
Subtotal 744,750 670,000
54260 Vehicle Maintenance
110 Vehicle Maintenance - 500
Subtotal - 500
54440 Computer Software Lease
111 Bluebeam subscription for marking up plan sets virtually (33%*$7,280) 2,403 2,763 111 Environmental Systems Research Institute (ESRI Inc) - GIS 5,000 5,750 Subtotal 7,403 8,513
55400 Advertising/Notices
110 Advertising/Notices 10,000 10,000
110 ▲ Update Safety Element and Environmental Justice Element (communication)* 4,000 2,000 Subtotal 14,000 12,000
55410 Printing and Binding
110 Printing and Binding 1,500 1,500
Subtotal 1,500 1,500
55600 Meeting and Catering
110 Meals for Commission Meetings 5,600 5,600
Subtotal 5,600 5,600
55800 Transportation and Training
110 Bay Area Planning Director Meetings 200 200
110 California Planning Association Conference 6,000 6,000 110 CEQA-Intro and Advanced Class 1,000 1,000
110 CLE CEQA Update 1,790 1,790
110 Clerk Training 500 500
110 Planetizen Training 1,125 1,300
110 Planning Commissioner Academy 6,000 6,000
Subtotal 17,353 16,790
55910 Memberships/ Dues
110 American Planning Association (AICP/APA certification) 3,000 3,000 110 MMANC - 95
Subtotal 3,000 3,095
60201 Reference/Text Sets/Subscriptions
110 Reference/Text Sets/Subscriptions 350 300
Subtotal 350 300
60203 Safety Supplies
110 Safety Supplies 2,500 600
Subtotal 2,500 600
60302 Postage and Delivery
110 Postage and Delivery 500 450
Subtotal 500 450
70410 Furniture & Equipment (Under $5000)
110 New filing cabinets and book shelves for office 2,000 - 111 iPad 1,500 -
Subtotal 3,500 -
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 822,356 735,848 Detail
DB-19
278
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DB-20
279
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : CEDD / Housing (31777)
Fund Adopted FY 26 Adopted FY 27
53101 Staff Augmentation
110 ▲ Staff Augmentation - 23,000
218 ▲ Staff Augmentation - 45,000
Subtotal - 68,000
53201 Professional and Technical Services
110 21 Elements Shared Housing Staff Program - 40,667
110 Update the Inclusionary Housing Ordinance* 25,000 - 207 BMR Administration - -
207 ⟳ EPACANDO BMR Monitoring 71,380 15,224
207 Grand Nexus Study (F207 50%/F216 50%)* 37,500
209 ⟳ AmeriNat BMR Loan Servicing (72%) 2,255 6,480
209 AmeriNat/San Mateo County invoices - -
215 AmeriNat CalHome Loan Servicing 921 -
216 Grand Nexus Study (F207 50%/F216 50%)* 37,500 -
218 ▲★ MHR Grants Admin Costs (15% - 45,000
218 ▲★ Major Home Repairs Grants - 255,000
218 ▲★ Major Home Repairs Admin Cost (20%) - 200,000
218 ▲★ Major Home Repairs Loans - 300,000
219 ⟳★ Measure HH - 1,100,000
219 Conclude Measure HH Pilot Evaluation and Initiate Ongoing Workforce Development Program * 850,000 - 220 ⟳ AmeriNat BMR Loan Servicing (28%) 877 2,520
220 BMR Administration -
220 ⟳ EPACANDO BMR Monitoring ( ($80%) 69,519 60,896
230 Affordable Housing Preservation via Equity Innovation Fund - - 235 ⟳ Anti-Displacement Services - CLSEPA (15% Admin)** - 25,500 235 ⟳ Anti-Displacement Services - Samaritan House ($2K Other Program Costs + 15% Admin)** - 35,000 235 ⟳ Anti-Displacement Services - WeHOPE ($2K Other Program Costs + 15% Admin)** - 35,000 235 ⟳ Anti-Displacement Legal Services - CLSEPA & Legal Aid (Other Program Costs + 15% Admin)** - 292,500 235 Rental Assistance - NEW ($1.7M*30%) 510,000 -
235 ⟳ Direct Rental Assistance - CLSEPA & Legal Aid SMC** - 115,000 235 ⟳ Direct Rental Assistance - CLSEPA** - 170,000
235 ⟳ Direct Rental Assistance - WeHOPE** - 218,000
235 ⟳ Direct Rental Assistance - Samaritan House** - 218,000 235 21 Element Shared Housing Staff Program 40,000 -
235 HDL Non-discovery 12,000 -
235 ⟳ HDL Discovery 70,000 70,000
Subtotal 1,726,952 3,204,787
55400 Advertising/Notices
110 Advertising/Notices - -
205 Advertising/Notices - 6,200
205 ▲★ Mailers - Inclusionary Housing - 6,000
207 Advertising/Notices 1,000 -
219 Advertising/Notices 200 200
235 ▲★ Advertising/Notices 6,000 6,000
Subtotal 7,200 18,400
55600 Meeting and Catering
235 ▲★ 1 policy-related community meeting 500 1,000
235 21 Elements Housing Meeting 500 -
Subtotal 1,000 1,000
55800 Transportation and Training
110 Housing California Conference 4,000 5,000
110 Miscellaneous Training (i.e. NPH, ULI, etc.) 2,500 7,500 110 USC Lusk Training Real Estate Program 5,400 -
Subtotal 11,900 12,500
55910 Memberships/ Dues
110 21 Elements Dues - 3,200
110 HIP Housing Dues - 2,500
110 Individual Dues (e.g. HLC, NPH) - 200
220 HEART Dues 9,267 9,267
235 21 Elements Dues 3,200 -
235 HIP Housing Dues 2,500 -
235 HLC Dues 200 -
235 Housing Caifornia Conference 150 -
235 Non-Profit Housing Association & Urban Land Institute 464 - Subtotal 15,781 15,167
Detail
DB-21
280
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : CEDD / Housing (31777)
Fund Detail Adopted FY 26 Adopted FY 27
60301 General Office Supplies
235 General Office Supplies 1,500 -
Subtotal 1,500 -
92120 Loan Advances
207 ▲ Affordable Housing Preservation Fund - 2,050,000
207 ▲ Affordable Housing Production NOFA ($12M total) - 4,000,000 218 ▲ Affordable Housing Production NOFA ($12M total) - 1,000,000 219 ▲ Affordable Housing Production NOFA ($12M total) - 7,000,000 220 Bay Road Loan Advance Annual Payment from SA Trust 60,000 - 230 ▲ County Equity Innovation Fund - Preservation Funding - 49,044 Subtotal 60,000 14,099,044
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 1,824,333 17,418,898 DB-22
281
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : CEDD / Rent Stabilization (31313) Fund Adopted FY 26 Adopted FY 27
53101 Staff Augmentation
204 ⟳ Staff Augmentation - 54,000
Subtotal - 54,000
53130 Stipends
204 Rent Stabilization Board Stipends 2,500 2,500
Subtotal 2,500 2,500
53201 Professional and Technical Services
204 Implementation Ordinance Amendments 2,500 2,500
204 Hearing Examiners - Eichner, RFP, Roush 82,500 81,000 204 Mediators 2,000 2,000
Subtotal 87,000 85,500
54410 Land and Building Lease and Rentals
204 CH Lease 5% 11,686 11,686
204 CH Security 1,437 1,437
Subtotal 13,123 13,123
55400 Advertising/Notices
204 Advertising/Notices - 1,000
Subtotal - 1,000
55410 Printing and Binding
204 Printing and Binding 20,000 20,000
Subtotal 20,000 20,000
55600 Meeting and Catering
204 Meeting and Catering 1,500 2,500
Subtotal 1,500 2,500
55800 Staff Training and Transportation
204 California Rent Stabilization Convening - SoCal 1,400 204 Housing California Conference 6,000 7,200
204 MMANC - Annual Conference - 2,000
204 Rent Stabilization Statewide Conference 1,600 -
204 Rent Stabilization Statewide Conference 600 -
Subtotal 8,200 10,600
55910 Memberships/ Dues
204 California Rent Stabilization News 1,500 1,500
204 Housing California 150 -
204 MMANC 95
204 Memberships/ Dues - -
204 Non-Profit Housing Association 200 200
Subtotal 1,850 1,795
Detail
DB-23
282
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : CEDD / Rent Stabilization (31313) Fund Detail Adopted FY 26 Adopted FY 27
60209 Other Operating Supplies
204 Other Operating Supplies - 350
Subtotal - 350
60301 General Office Supplies
110 General Office Supplies - -
204 General Office Supplies - 1,000
Subtotal - 1,000
60302 Postage and Delivery
204 Postage and Delivery 4,000 4,000
Subtotal 4,000 4,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 138,173 196,368 DB-24
283
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : Finance / Finance (13131)
Fund Adopted FY 26 Adopted FY 27
53201 Professional and Technical Services
110 Annual 10 year forecasting update 5,500 -
110 ▲★ Develop a 10-Year Fiscal Strategy and Address the Structural Deficit 150,000 75,000 110 Financial advisory for defeasance for SA fund 40,000 - 110 ▲★ Municipal Advisory Services for Financing options 40,000 250,000 110 SB90 Reporting 6,765 10,000
111 Caselle 70,000 70,000
111 Credit Card monthly fee 1,548 1,548
111 Implement a Centralized Grants Management System 150,000 - 203 NPDES Data services Tax roll 2,300 2,300
219 Professional and Technical Services 650 650
520 Garbage Data services Tax roll 2,300 2,300
530 Caselle Data migration from Quickbooks 10,000 -
705 SA Debt covenants, RDA Analysis, Willdan 3,732 3,732 Subtotal 482,795 415,530
53210 Audit Services
110 ACFR Statistics support 3,234 5,000
110 Bartel (GASB 68) = Foster Foster 2,100 2,100
110 CAP and User fee Annual update 5,000 -
110 GF Audit 70,929 75,000
110 GFOA ACFR application fee 548 1,000
110 New GASB Implementation 10,000 -
110 Pension refunding strategy 6,000 -
110 STARS support 2,310 2,500
110 SUTA support 2,026 2,500
202 Measure A Audit 1,792 1,846
219 Measure HH Audit 1,792 1,846
234 Measure W Audit 1,792 1,846
530 Audit 25,000 20,600
530 Bartel (GASB68) Report 2,100 3,300
530 County PPT Fees 10,000 10,000
530 New GASB Implementation 2,000 -
530 OPEB Actuarial Study (2 Reports) 8,000 5,000
530 ▲★ EDS Tax Roll Consultant - 30,000
530 Data Service Tax Roll - 2,300
705 Audit 3,102 3,102
Subtotal 157,725 167,940
54440 Information Technology
111 Gov.invest - Pension Forecasting 3,066 3,066
Subtotal 3,066 3,066
55400 Advertising/ Notices
110 Advertising/ Notices - Budget Hearing Notices 500 500 Subtotal 500 500
55410 Printing and Binding
110 Printing and Binding - Budget Booklet 5,000 8,000
Subtotal 5,000 8,000
55600 Meeting and Catering
110 Budget Kick-off meeting - 500
110 Meeting and Catering - Department Retreat 2,000 2,000 Subtotal 2,000 2,500
55800 Transportation and Training
110 Annual Payroll Update 1,000 1,000
110 California Municipal Treasurers' Conference 1,000 1,000 110 CSFMO Chapter Meetings, Webinars 1,000 1,000
110 CSMFO, Annual Conference - Calif. Society of Municipal Finance Officers 7,500 7,500 110 Notary Commission Renewal (backup to City Clerk) - NEW 375 - 110 Webinars, Single Audit, CPE, Other 6,000 6,000
Subtotal 16,875 16,500
Detail
DB-25
284
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : Finance / Finance (13131)
Fund Detail Adopted FY 26 Adopted FY 27
55910 Memberships/ Dues
110 American Payroll Association (APA) 600 600
110 CA Board of Accountancy (CPA License) 500 500
110 CA Municipal Treasures Association 200 300
110 CA Society of Finance Officer (CSMFO) 750 750
110 California CPA Society 785 785
110 Goc't Finance officers association (GFOA) 250 750
110 HBR, other 500 500
Subtotal 3,585 4,185
55990 Other Services
110 Other Services - Loomis, Paper Shredding 30,000 36,000 Subtotal 30,000 36,000
60301 General Office Supplies
110 General Office Supplies 4,000 3,500
Subtotal 4,000 3,500
60302 Postage and Delivery
110 Postage and Delivery - FedEx 800 800
Subtotal 800 800
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 706,346 658,521 DB-26
285
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : Non-Departmental / Non-Departmental (95951) Fund Adopted FY 26 Adopted FY 27
53120 County Services
110 SMC Property Tax Admin Fee 75,462 79,235
203 SMC Property Tax Admin Fee 9,529 10,005
219 SMC Property Tax Admin Fee 13 14
221 SMC Property Tax Admin Fee 5,808 6,098
222 SMC Property Tax Admin Fee 1,634 1,716
520 SMC Property Tax Admin Fee 9,075 9,529
Subtotal 101,521 106,597
53201 Professional and Technical Services
110 Business License Tax Admin - General 24,000 30,000
110 Business License Tax Discovery 25,000 -
Subtotal 49,000 30,000
54410 Land and Building Lease and Rentals
110 Card key 9,000 9,000
110 Lease (CH) 222,029 222,029
110 Security (CH) 27,293 27,293
Subtotal 258,322 258,322
54430 Equipment Lease and Rentals
110 Equipment Lease and Rentals 9,000 9,000
Subtotal 9,000 9,000
54910 Garbage Services-BFI
520 Garbage Services-BFI 3,500,000 3,600,000
Subtotal 3,500,000 3,600,000
54990 Other Property Services
110 Property tax - Corp Yar insurance and GF tax 24,615 25,846 110 Property tax - Sewer & CDA at 1765 East Bayshore Road 114-450-030 2,837 2,979 110 Property tax - Sewer at 1798 Bay Road 063-231-250 726 762 110 Property tax - Sewer at 1960 Tate 063-665-020/ 063-676-02088 4,065 4,268 110 Property tax - Sewer at 2277 University Ave 063-302-460 726 762 110 Property tax - Sewer at East Palo Alto 063-514-010 660 660 110 Property tax - Sewer at East Palo Alto 063-514-030 660 660 110 Property tax - Sewer at East Palo Alto 063-680-090 660 660 110 Property tax - Sewer & CDA 1950 Bay road 063-240-490 34,944 36,691 203 Other Property Services 434 456
510 Property tax - Corp Yard F510 tax - Reimb to Property Owner 868 911 510 Quarterly pass thru to Veolia 17,200 17,200
Subtotal 88,395 91,855
55210 Premiums
113 Liability 871,287 990,554
113 Property 145,060 132,819
Subtotal 1,016,347 1,123,373
55230 Settlements/ Judgements
113 Settlements/ Judgements 50,000 -
Subtotal 50,000 -
55910 Memberships/ Dues
110 Citywide CCAG Dues - GF 13,089 13,743
110 League of CA Cities (Transferred from 11111 in FY26) 13,000 14,431 201 CCAG Transportation, Congestion Relief - Gas tax portion 89,783 94,272 Subtotal 115,872 122,446
55940 Joint Powers Authority Dues
110 Joint Powers Authority Dues 938,965 985,913
Subtotal 938,965 985,913
Detail
DB-27
286
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : Non-Departmental / Non-Departmental (95951) Fund Detail Adopted FY 26 Adopted FY 27
80110 Principal
706 Principal 4,542,166 5,022,485
Subtotal 4,542,166 5,022,485
80120 Interest-Other
706 Interest- Other 353,425 -
Subtotal 353,425 -
80210 Bank Charges
705 Bank Charges 5,500 5,500
Subtotal 5,500 5,500
90010 Transfers Out
110 Transfers Out 3,602,115 3,837,150
110 To adjust NPDES 1,101 -
110 To adjust Drainage (50,000) -
110 To adjust IT Transfers 200,000 -
Subtotal 3,753,216 3,837,150
90310 Overhead Allocation
110 General Overhead Allocation (2,307,892) (2,356,166) 113 Insurance Allocation (155,657) (176,557)
201 General Overhead Allocation 147,107 -
201 Insurance Allocation 7,484 6,688
201 Overhead Allocation - 152,248
202 Overhead Allocation 53,243 54,574
203 Overhead Allocation 122,097 125,872
203 Insurance Allocation 13,099 13,688
204 Overhead Allocation 280,197 287,634
204 Insurance Allocation 17,286 23,280
206 Overhead Allocation 1,080 1,107
207 Overhead Allocation 10,466 10,728
209 Overhead Allocation 8,981 9,206
218 Overhead Allocation 7,516 7,704
221 Overhead Allocation 51,748 53,521
221 Insurance Allocation 1,234 847
222 Overhead Allocation 58,582 60,454
222 Insurance Allocation 2,587 2,418
231 Overhead Allocation 9,011 9,236
234 Overhead Allocation 18,804 19,274
301 Overhead Allocation 168,906 175,305
301 Insurance Allocation 6,339 4,656
305 Overhead Allocation 2,125 2,178
306 Overhead Allocation 2,125 2,178
307 Overhead Allocation 2,233 2,289
308 Overhead Allocation 1,873 1,919
309 Overhead Allocation 1,621 1,661
510 Overhead Allocation 183,367 188,406
510 Insurance Allocation 8,875 -
511 Overhead Allocation 29,022 29,747
511 Insurance Allocation - 9,312
512 Overhead Allocation 7,405 7,590
513 Overhead Allocation 2,665 2,732
520 Overhead Allocation 176,650 181,368
520 Insurance Allocation 19,892 21,644
530 Overhead Allocation 934,703 962,782
530 Insurance Allocation 88,912 93,118
705 Overhead Allocation 15,490
705 Overhead Allocation 824 6,456
705 Insurance Allocation - 905
Subtotal - -
DB-28
287
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : Non-Departmental / Non-Departmental (95951) Fund Detail Adopted FY 26 Adopted FY 27
92110 Loan Advances
705 Loan Advances 60,000 -
Subtotal 60,000 -
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 14,841,729 15,192,641 DB-29
288
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DB-30
289
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : Police / Administration (41411)
Fund Adopted FY 26 Adopted FY 27
53120 County Services
110 SMC Dispatch Services 1,002,519 1,498,054
110 SMC Citation Pass-Through 100,000 125,000
110 SMC Animal Control Services 581,780 650,000
110 SMC Animal Control Bond Payment 26,000 70,000
110 SMC Crime Lab 137,000 150,000
110 SMC- District Attorney- RIMS Interface 3,000 3,000
110 SMC Message Switch 15,000 15,000
Subtotal 1,865,299 2,511,054
53201 Professional and Technical Services
110 Briefing Room- Patrol 1,963 1,963
110 CORA 9,500 9,500
110 Critical Incident Videos Productions 30,000 30,000
110 ★ Expand Parking Enforcement Capacity 350,000 410,000 110 Genesys - 2,400
110 Lexipol- Duty & training manual policy 12,547 12,547 110 Mutual Aide Radio Services 6,500 6,500
110 PD Web Page 4,000 10,000
110 Polygraph 1,200 -
110 PowerDMS- FTO software 3,355 3,355
110 Pre-employment Background Investigations 30,000 31,200 110 Pre-employment psychological testing 15,000 15,000
110 Promotional Testing Services 10,000 10,000
110 Resilience Crime Tip Line 5,500 5,500
110 Shot-Spotter License 62,000 62,000
110 SMC - Dispatch - ShotSpotter Agreement 5,000 5,000
110 SMC- Sheriffs - Range Fee 7,500 7,500
110 Star Vista 21,500 21,500
110 Turbo Data Citation Processing 118,480 118,480
110 Vector Solutions-Scheduling 7,200 7,200
111 Flock 75,000 92,000
Subtotal 776,245 861,645
53202 Medical Services
110 Medical Services/Victims 5,500 5,500
Subtotal 5,500 5,500
54240 Building Maintenance
110 Building Maintenance 4,000 4,000
Subtotal 4,000 4,000
54260 Vehicle Maintenance Service
110 Image Auto 150,000 150,000
110 PD Cars equipment, warranties - MDT's - 17,000
110 Police Towing for 2-companies 10,000 37,000
110 Vehicle system, parts, services 5,500 5,500
111 PD Cars equipment, warranties - MDT's 17,000 17,000 Subtotal 182,500 226,500
54410 Land and Building Lease and Rentals
110 141 Demeter 196,927 200,866
110 219 Demeter 77,600 79,152
Subtotal 274,527 280,018
54430 Equipment Lease and Rentals
111 Axon Contract Renewal - Camera Lease, Subscription, Interview Room 162,744 162,744 Subtotal 162,744 162,744
54440 Computer Software Lease
111 SunRidge - Rims 15,500 15,500
Subtotal 15,500 15,500
55300 Communications
110 Decrease of $10,000 for Communication Services 65,000 - 111 Communication Services - 15,000
Subtotal 65,000 15,000
Detail
DB-31
290
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : Police / Administration (41411)
Fund Detail Adopted FY 26 Adopted FY 27
55410 Printing and Binding
110 Printing and Binding 7,500 7,500
Subtotal 7,500 7,500
55600 Meeting and Catering
110 Meeting and Catering - -
110 Community Policing Meetings 8,000 10,000
110 PD Special Operations Catering 7,500 9,375
Subtotal 15,500 19,375
55800 Transportation and Training
110 International Assoc. of Chiefs of Police - GF 12,000 12,000 110 Leadership/Management Training - GF 9,000 9,000
110 Property & Evidence Training - GF 6,000 6,000
110 Records Training - GF 6,000 6,000
110 Training for New Police Personnel 40,000 40,000
110 Wellness Training & Services - 10,000
110 Women Leaders - 10,000
Subtotal 73,000 93,000
55810 Advanced Training
110 Advanced Officer Training (POST) 12,000 -
110 CORE POST (Adv/Cultural) - 15,500
110 Cultural Competency/Diversity (POST) 3,500 -
110 Instructor (POST) - 5,000
110 Investigations and Gang Training (POST) 10,000 10,000 110 Other POST Trainings 15,000 -
110 RangeMaster Training (POST) 5,000 -
110 Tactical Training (POST) 9,000 24,000
Subtotal 54,500 54,500
55910 Memberships/ Dues
110 California Police Chiefs Association (CPCA) 1,200 1,500 110 CCJWSA 300 300
110 CCUG 300 300
110 CLEARS 300 300
110 Fastrak - moved to 55990 - -
110 International Association of Chiefs of Police (IACP) 660 825 110 International Conference of Police Chaplains (ICPC) 2,500 2,500 110 San Mateo County Police Chiefs and Sheriffs Association 1,800 2,250 110 The One Hundred Club of San Mateo County 1,000 1,250 Subtotal 8,060 9,225
55920 Special Events
110 Clean Zone Project 10,000 -
110 Community Policing and Special Events 10,000 10,000 110 Special Events - Holidays, Back-to-School, etc. 10,000 10,000 230 H&H 150,000 -
Subtotal 180,000 20,000
55940 Joint Powers Authority Dues
110 Joint Powers Authority Dues - -
110 San Mateo county Public safety communication 50,000 50,000 110 San Mateo county Sheriff 25,000 30,000
Subtotal 75,000 80,000
55990 Other Services
110 Car Wash 6,000 6,000
110 Fast Track 7,800 7,800
Subtotal 13,800 13,800
60201 Reference/Text Sets/Subscriptions
110 Reference/Text Sets/Subscriptions 1,000 1,000
Subtotal 1,000 1,000
60202 Uniform & Safety Apparel
110 Uniform & Safety Apparel 40,000 40,000
Subtotal 40,000 40,000
DB-32
291
FY 2027
Expense Detail request (Excl. Payroll)
Department/ Division : Police / Administration (41411)
Fund Detail Adopted FY 26 Adopted FY 27
60203 Safety Supplies
110 Safety Supplies 12,500 12,500
Subtotal 12,500 12,500
60204 AMMO & Firearms
110 AMMO & Firearms 23,500 23,500
Subtotal 23,500 23,500
60207 Utilities
110 Utilities 85,000 85,000
Subtotal 85,000 85,000
60209 Other Operating Supplies
110 Other Operating Supplies 10,000 10,000
Subtotal 10,000 10,000
60301 General Office Supplies
110 General Office Supplies 53,650 40,000
Subtotal 53,650 40,000
60302 Postage and Delivery
110 Postage and Delivery 1,500 1,500
Subtotal 1,500 1,500
70420 Furniture and Equipment
213 Furniture and Equipment 170,000 -
Subtotal 170,000 -
70510 Rolling Stock: Vehicles, Mower, etc.
112 (2) Police Patrol Vehicles with Equipment 120,500 200,000 Subtotal 120,500 200,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 4,296,325 4,792,861 DB-33
292
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DB-34
293
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : Police / Operations (41412)
Fund Adopted FY 26 Adopted FY 27
53201 Professional and Technical Services
213 ▲ Police Crisis Clinician (On-Site) 200,000
Subtotal - 200,000
55990 Parking Program
110 Parking Program 200,000 -
Subtotal 200,000 -
60208 Fuel
110 Fuel 150,000 200,000
Subtotal 150,000 200,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 350,000 400,000 Detail
DB-35
294
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DB-36
295
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : Police / Investigation (41413)
Fund Adopted FY 26 Adopted FY 27
53201 Professional and Technical Services
110 Bosch Systems 3,500 3,500
110 CDR Software - Documentation System 1,200 1,200
110 CID Callyo - Wire Services 8,000 6,000
110 CID Car Rental for Investigations 2,000 2,000
110 CID Cellbrite UFED Touch 10,000 10,000
110 CID Integrity Tracking System 5,000 5,000
110 CID Net Transcript 2,000 2,000
110 CID Nighthawk - LEO Vision 5,000 -
110 CID Richmond Crime Labs 20,000 20,000
110 Crash Data Group Inc. 1,200 1,200
110 FirstTwo Inc-CID 5,400 5,400
110 Forensic Logic - Soundthinking (Crime Tracer) 5,058 5,058 110 Keller Center/Medical Costs 35,000 40,000
110 Lexis Nexis - Report System Annual 8,800 8,800
110 Sketch Artist 2,000 2,000
110 T-Mobile Pen Locate 2,000 2,000
Subtotal 116,158 114,158
60210 Undercover Fund
110 Undercover Fund 10,000 10,000
Subtotal 10,000 10,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 126,158 124,158 Detail
DB-37
296
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DB-38
297
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Attorney / CAO (12121)
Fund Adopted FY 26 Adopted FY 27
53201 Professional and Technical Services
110 Legal Research Service (Westlaw) 33,000 33,000
Subtotal 33,000 33,000
53210 Legal and Accounting Services
110 Outside legal expertise - Code Enforcement Cases (from Bldg) 15,000 15,000 110 Outside legal expertise - General 95,000 95,000
110 Outside legal expertise - Investigation (From HR) 78,750 82,940 110 Outside legal expertise - Investigation 65,000 65,000 110 Outside legal expertise - Labor Employment (From HR) 90,000 93,600 110 Outside legal expertise - Union Negotiations (From HR) - 75,000 110 Outside legal expertise - PD Investigation 50,000 52,000 110 Outside legal expertise - PW Litigation 150,000 150,000 113 Outside legal expertise - Litigation 70,000 50,000
117 Outside legal expertise - Developer Reimbursement Agreements 50,000 80,000 220 Outside legal expertise - SA Housing 27,500 7,000
220 Outside legal expertise -BMR Monitoring (Curry) - 3,700 230 Legal and Accounting Services 15,000 -
510 Outside legal expertise - Water Matters 5,000 7,000 530 Legal and Accounting Services - Legal Advise-Colantuono 40,000 41,600 705 Outside legal expertise - SA Capital 1,400 1,400
Subtotal 752,650 819,240
55230 Settlements/Judgements
113 Settlements - 75,000
Subtotal - 75,000
55410 Printing and Binding
110 Printing and Binding 300 300
Subtotal 300 300
55600 Meeting and Catering
110 Meeting and Catering 250 250
Subtotal 250 250
55800 Transportation and Training
110 BACA & Municipal Law Meetings (Monthly) 500 500
110 Land Use/Pitchess Seminars - registration, mileage travel 850 850 110 League of California Cities Annual Conference 4,000 4,000 110 League of California Cities Seminars (as needed) 900 900 110 League of California Cities, City Attorneys Conference 1,500 1,500 110 Legal Secretary Courses (2) 400 500
110 Legal Secretary Courses (2) 500 -
110 Other seminars and workshops 200 3,200
530 Special District Conference 2,000 2,000
Subtotal 10,850 13,450
55910 Memberships/ Dues
110 State Bar of California 1,550 1,800
Subtotal 1,550 1,800
60201 Reference/Text Sets/Subscriptions
110 Reference/Text Sets/Subscriptions 4,500 2,000
Subtotal 4,500 2,000
60301 General Office Supplies
110 General Office Supplies 1,000 1,000
Subtotal 1,000 1,000
60302 Postage and Delivery
110 Postage and Delivery 250 250
Subtotal 250 250
Detail
DB-39
298
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Attorney / CAO (12121)
Fund Detail Adopted FY 26 Adopted FY 27
70310 Other
110 Office Wall Project 32,100 -
Subtotal 32,100 -
70410 Furniture & Equipment (Under $5000)
110 Furniture & Equip Under$5k 5,000 -
111 Furniture & Equip Under$5k 1,000 -
Subtotal 6,000 -
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 842,450 946,290 DB-40
299
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Clerk's Office / Clerk Services (11112) Fund Adopted FY 26 Adopted FY 27
53120 County Services
110 County Services - -
110 ▲★ Potential Ballot Measure - NEW - 140,000
Subtotal - 140,000
53201 Professional and Technical Services
110 Communications Plan (General) - NEW 25,000 -
110 Conduct Council Term Limit Policy Research 7,000 -
110 Cultural Bridges for Translation Services (Citywide) 20,000 20,000 110 Document Shredding 5,000 5,000
110 ▲★ Implement Sister City and Cultural Exchange Initiative 70,610 20,610 110 Mass Mailers 30,000 30,000
110 Mid-Peninsula Media Center for Hybrid Meetings 4,000 4,000 111 AI Minutes Software 1,500 1,500
111 ZenCity Communications Management 10,000 -
Subtotal 173,110 81,110
54440 Computer Software Lease
111 AMS Annual - Granicus (Cloud-based) 21,690 21,690
111 ★ City Website Update 45,000 45,000
111 MCCi (Laserfiche) 7,000 7,000
111 Mass Email Software 1,000 1,000
111 Municipal Code Host and Update 6,300 6,300
111 NextRequest/ PRA software 11,000 11,000
111 Social Media Accounts/ Hootsuite 1,188 1,188
111 Website Hosting - CivicPlus 14,000 20,000
111 Zoom for Council Meetings Only - To 95952 - -
Subtotal 107,178 113,178
55300 Communications
110 Communications - 2,000
Subtotal - 2,000
55400 Advertising/Notices
110 Social & Print Media Advertising (Facebook Ads) 3,000 - 110 Advertising/ Notices - 2,000
Subtotal 3,000 2,000
55410 Printing and Binding
110 Printing and Binding 800 -
Subtotal 800 -
55800 Transportation and Training
110 CA Association of Public Information Officers 1,250 1,250 110 CA City Clerks Association Div - Quarterly Meetings 250 250 110 City Clerks Annual Conference 1,000 1,000
110 City Clerks New Law and Elections Conference 1,000 1,000 110 Professional Development Training/Seminars 500 500
Subtotal 4,000 4,000
55910 Memberships/ Dues
110 CAPIO 275 275
110 City Clerks Association of California 130 130
110 International Institute of Municipal Clerks 210 210 110 National Notary Association 110 110
110 PRSA 275 275
Subtotal 1,000 1,000
Detail
DB-41
300
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : City Clerk's Office / Clerk Services (11112) Fund Detail Adopted FY 26 Adopted FY 27
60201 Reference/Text Sets/Subscriptions
110 Netfile - 3,000
Subtotal - 3,000
60301 General Office Supplies
110 General Office Supplies 2,300 -
Subtotal 2,300 -
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 291,388 346,288 DB-42
301
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : Council / (10101)
Fund Adopted FY 26 Adopted FY27
53201 Professional and Technical Services
110 ⟳ City Attorney/City Manager Evaluations (every 3 years) 38,000 30,000 110 Council Priorities or Team Building (MRG) 15,000 15,000 110 ⟳ Headshots (Bi-annual) 1,000
Subtotal 53,000 46,000
55410 Printing and Binding
110 Printing & Binding - 500
Subtotal - 500
55600 Meeting and Catering
110 Meeting and Catering 5,000 7,000
Subtotal 5,000 7,000
55800 Transportation and Training
110 Annual Washington DC Trip 7,000 7,000
110 CA League of California Cities - Peninsula Quarterly Meetings 1,000 1,000 110 CA League of Cities - Mayors & Council Members Advanced Leadership Workshops 1,200 1,200 110 CA League of Cities - Mayors & Council Members Exec Forum 1,000 1,000 110 CA League of Cities - New Mayor and Council Members Academy 2,000 - 110 Council of Cities Dinner Meetings 2,000 -
110 Joint Venture Silicon Valley - State of the Valley 750 750 110 League of California Cities Annual Conference & Expo 2,000 - 110 Miscellaneous training and meetings 1,850 -
110 National League of Cities - Summit 3,000 2,850
110 San Mateo County Regional Issues Seminar (Organized by Redwood City Chamber of Commerce) 1,200 1,200 110 U.S. Conference of Mayors 5,000 5,000
530 Training for board members 7,500 7,500
Subtotal 35,500 27,500
55910 Memberships/ Dues
110 ABAG Membership 10,362 10,362
110 National League of Cities 2,000 2,000
110 SFO Round Table Membership Dues 1,500 1,500
Subtotal 13,862 13,862
55920 Special Events
110 Special Events - State of the City, Community Sponsorship, Special Meetings 10,000 10,000 Subtotal 10,000 10,000
60301 General Office Supplies
110 General Office Supplies 2,000 1,000
Subtotal 2,000 1,000
70410 Furniture & Equipment under ($5K)
111 Laptops for Council (20%) 7,500 7,500
Subtotal 7,500 7,500
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 126,862 113,362 Detail
DB-43
302
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DB-44
303
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : PW / Administration (21211)
Fund Adopted FY 26 Adopted FY 27
54440 Computer Software Lease
111 TRAKiT (20%* $25,000) 5,000 5,000
Subtotal 5,000 5,000
55600 Meeting and Catering
110 PWTC Meetings 2,000 2,750
110 Staff Retreat and Quarterly Division Meetings 1,000 1,500 Subtotal 3,000 4,250
55800 Transportation and Training
110 Administrative Professional 300 1,500
110 APWA annual conference 1,500 1,500
110 ASCE trainings 1,500 1,500
110 Budget/Project Management 3,000 3,000
110 League of CA Conference 2,100 2,100
110 Manager/Supervisor Academy 2,500 2,500
110 MMANC Conference - 2,000
Subtotal 12,700 14,100
55910 Memberships/ Dues
110 APWA 200 -
110 ASCE Membership 500 500
110 CCAC Membership 500 500
110 CSFMO Membership 250 250
110 ELGL 50 50
110 ICMA 200 200
110 MMANC 100 360
110 QSD Licensing 150 150
110 State of California DCA 150 150
221 Annual Membership Dues for Street Light CAL-SLA 300 300 Subtotal 2,400 2,460
55920 Special Events
110 Outreach and Education 3,000 3,000
Subtotal 3,000 3,000
60201 Reference/Text Sets/Subscriptions
110 Reference/Text Sets/Subscriptions 500 250
Subtotal 500 250
60301 General Office Supplies
110 ▲ Water Dispenser - NEW - 500
110 General Office Supplies 3,500 3,500
Subtotal 3,500 4,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Division Total 150,850 33,060
Detail
DB-45
304
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DB-46
305
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : PW / Environmental Services (21214) Fund Adopted FY 26
53201 Professional and Technical Services
110 Bay Area Community Resource Fellow 31,500
110 Canopy Contract - UFMP/Community Tree Services 80,000 110 Other Professional and Technic -
203 Grassroots Ecology
203 Stormwater Consultant
230 ▲ PCE Grant (243K-CIP 120K) -50% upfront fee 123,563 Subtotal 235,063
54210 Street Maintenance Services
203 Street Sweeping Services Contract 365,000
Subtotal 365,000
55300 Communications
110 Communications 1,000
Subtotal 1,000
55400 Advertising/ Notices
110 Advertising/ Notices -
Subtotal -
55410 Printing and Binding
110 Floodplain Mailers, CRS Communications, Event Flyers 3,000 Subtotal 3,000
55600 Meeting and Catering
110 Environmental Catering and Quarterly Division Offsite meetings 2,500 Subtotal 2,500
55800 Transportation and Training
110 CASQA Conference 1,500
110 NPDES Inspection Training 750
110 Various Workshops and Conferences (MMANC WLS, Winter Forum, Summer Symposium) 750 Subtotal 3,000
55910 Memberships/ Dues
110 Association of Environmental Professionals 500
110 CASQA Agency Membership (Annual) 250
110 Conference materials/handbooks 50
110 MMANC 200
110 ⟳ OneShoreline Annual Funding Contributions FSLRRA 40,000 Subtotal 41,000
55920 Special Events
110 Clean-up Events (quarterly) 500
110 Earth Day 3,000
110 Harzardous eWaste Event 250
110 Shred Event 250
110 Arbor Day/Mayor Tree Planting -
110 Bike to Work Day -
Subtotal 4,000
Detail
DB-47
306
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : PW / Environmental Services (21214) Fund Detail Adopted FY 26
60201 Reference/Text Sets/Subscriptions
110 Reference/Text Sets/Subscriptions 250
Subtotal 250
60202 Uniform & Safety Apparel
110 Uniform & Safety Apparel 750
Subtotal 750
60301 General Office Supplies
110 General Office Supplies 500
Subtotal 500
60302 Postage and Delivery
110 Postage and Delivery 500
Subtotal 500
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Division Total 656,563
DB-48
307
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : PW / Engineering (21212)
Adopted FY 26 Adopted FY 27
53101 Staff Augmentation
110 Development review support 200,000 50,000
110 SB 35 Staff Aug Plan Review - Increased technical counter activity 125,000 - 110 Survey for Development Review - Post-Entitlement - 50,000 530 Sheryll Temp employee through AppleOne 39,520 80,000 Subtotal 364,520 180,000
53201 Professional and Technical Services
110 ▲★ Launch a Residential Parking Permit Program 400,000 400,000 110 ★ Development Support - Third party review assessment - 150,000 110 Engineering Inspection Services - NEW - 150,000
110 On-Call Geo-Technical 50,000 -
110 ★ On-Call Transportation Services 50,000 50,000
110 ▲ TDM Administrator - 200,000
510 Assessment Management 50,000 50,000
510 Groundwater Monitoring 50,000 -
510 Water Rate study 150,000 -
530 EPASD Data Service Tax Roll 2,300 -
530 ⟳ Freyer & Lauretta Engineering services - both cost recovery and staff aug 350,000 100,000 530 ⟳ EKI Technical Services - On-Call Technical - 100,000 530 Office Expenses 5,000 -
530 Palo Alto Treatment 2,700,000 2,875,884
530 West Bay Contract 1,200,000 1,800,000
530 Wildan Impact Fee Study for EPASD, rate study and EDS tax roll 187,000 - Subtotal 5,194,300 5,875,884
54220 Street Lights Maintenance
221 Cal West - Traffic Signal Maintenance & Repair 55,000 100,000 Subtotal 55,000 100,000
54230 Signs/Signals Maintenance
201 Cal West - Traffic Signal Maintenance & Repair 75,000 100,000 Subtotal 75,000 100,000
54440 Computer Software Lease
111 AutoCAD - Transferred from 111-95951 3,000 3,000
111 Bluebeam (33%) 2,403 2,403
111 Radar Sign Subscription - 4,000
Subtotal 5,403 9,403
55300 Communications
530 EPASD Landlines and Internet - 9,000
Subtotal - 9,000
55400 Advertising/Notices
110 Advertising/Notices 2,000 -
511 Advertising/Notices 5,000 5,000
530 Advertising/Notices 25,000 5,000
Subtotal 32,000 10,000
55410 Printing and Binding
110 Printing and Binding 1,000 -
Subtotal 1,000 -
55600 Meeting and Catering
110 Community Rating Service for FEMA activities 300 300 110 Engineering Retreats 500 500
110 Outreach meetings for construction 500 -
110 Ribbon cutting ceremonies 500 1,000
530 6 Advisory Commission Meetings, plus any meetings at EPASD - 1,500 530 Meeting and Catering - 1,000
Subtotal 1,800 4,300
Fund Detail
DB-49
308
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : PW / Engineering (21212)
Fund Detail Adopted FY 26 Adopted FY 27
55800 Transportation and Training
110 American Public Works Association Conference 1,500 1,500 110 Annual League of California Cities PW Meeting 2,500 2,500 110 ASCE/APWA monthly training 700 900
110 CalTrans Federal Aid/ RE Training 500 650
110 CASQA - 1,500
110 FEMA Training 500 500
110 Inspection Training (various) 300 300
110 PE Certification Training 1,000 1,000
110 Professional Training (various) 300 -
110 Transportation and Training - -
530 CWEA Annual Conference & Expo (AC26) - 3,400
530 MMANC Women’s Leadership Summit Conference - 550
530 Municipal Management Association Northern CA Conference - 2,800 530 For meetings 6,000 -
530 EPASD Staff Trainings 5,000 -
Subtotal 18,300 15,600
55910 Memberships/ Dues
110 APWA 500 750
110 ASCE Membership 500 600
110 QSD Certification 300 300
110 State of California DCA 700 540
530 CWEA Membership (PW Director, Utility Manager, Admin Asst) - 753 530 APWA Membership (PW Director, Utility Manager, Admin Asst) - 869 530 California Special Districts Association (CSDA) - 2,000 530 Memberships/ Dues 30,000 -
Subtotal 32,000 5,812
60201 Reference/ Text Sets/ Subscriptions
111 Reference/ Text Sets/ Subscriptions 4,000 4,000
Subtotal 4,000 4,000
60202 Uniform & Safety Apparel
110 Uniform & Safety Apparel 1,000 -
Subtotal 1,000 -
60207 Utilities
530 Utilities 54,000 50,000
Subtotal 54,000 50,000
60208 Fuel
110 Fuel 2,500 -
530 Fuel - 250
Subtotal 2,500 250
60209 Other Operating Supplies
530 Other Operating Supplies 8,500 5,000
Subtotal 8,500 5,000
60301 General Office Supplies
110 General Office Supplies 2,000 -
530 General Office Supplies 10,000 1,000
Subtotal 12,000 1,000
60302 Postage and Delivery
110 Postage and Delivery 500 -
530 Postage and Delivery 5,000 -
Subtotal 5,500 -
70410 Furniture & Equipment (Under $5000)
110 Furniture & Equip Under$5k - -
530 ▲ Furniture & Equip Under$5k - 12,000
Subtotal - 12,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 5,866,823 6,382,249 DB-50
309
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : PW / Maintenance (21213)
Fund Adopted FY 26 Adopted FY 27
53120 County Services
110 SMC County Inspections - Cooley Landing Soil Gas Mitigation System 10,000 10,000 110 SMC Health & Hazmat inspection 1,500 1,500
Subtotal 11,500 11,500
53201 Professional and Technical Services
110 Badger Daylighting Contract (flood protection) ) & Newbridge trash capture device maintenance 100,000 75,000 110 Brightview Landscape Services Contract (soundwall weed removal) 41,000 41,000 110 Brightview Landscape Services Contract - 1266 Beech - NEW - 12,000 110 C2R Engineering Contract (flood protection) - 75,000 110 ▲ Cooley Landing Maintenance Project - NEW - 100,000 110 Graffiti Abatement Program - NEW Contract 75,000 -
110 Miscellaneous 25,000 -
110 Ninyo & Moore-Cooley Landing (Sea level Rise, Soil Gas Mitigation, Engineering Cap inspection) - 50,000 110 Precision Concrete Cutting - NEW 75,000 -
110 Republic Services Contract (Hazardous Materials Disposal) 100,000 50,000 110 Tree Inventory & Assessment 100,000 150,000
110 West Coast Arborist Contract (Trees in Public Right-of-Way) 130,000 - 111 IWORQ System (Annual Work Order License) 6,000 -
201 Chrisp Company Contract-original contract $50K, add $50K annually per PW Director 100,000 50,000 201 Public Tree Assessment & inventory 20,000 50,000
201 West Coast Arborist Contract 20,000 -
203 SD-09 Trash Capture Project - Newbridge & Saratoga 20,000 25,000 221 IWORQ System (Annual Work Order License) - 10,000
222 ▲ Pump station pond maintenance 200,000 100,000
222 McNabb Contract (Annual Runnymede Drainage Channel Maintenance) 9,800 - 510 Annual backflow testing & repairs 12,000 15,000
Subtotal 1,033,800 803,000
54210 Street Maintenance Services
201 Street Maintenance Services 100,000 100,000
Subtotal 100,000 100,000
Detail
DB-51
310
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : PW / Maintenance (21213)
Fund Detail Adopted FY 26 Adopted FY 27
54240 Building Maintenance
110 A-1 Septic Tank Service @ Cooley Landing 3,000 -
110 AA Locks & Alarm 20,000 20,000
110 Ace Fire -fire extinguisher 5,000 5,000
110 Acme Pacific-Senior Center kitchen equipment 5,000 5,000 110 Andys Roofing 40,000 -
110 Arias F. electric contract 50,000 50,000
110 Bay Area Fencing 10,000 -
110 Environmental Systems HVAC contract 60,000 25,000
110 Everon Contract (Building Alarm) 17,500 17,500
110 Fast Sign 7,500 7,500
110 Global Industrial-trashcans 4,000 -
110 Grainger 15,000 20,000
110 Home Depot 20,000 15,000
110 James Plumbing & Drain Services 5,000 5,000
110 Johnson Control Contract (Building Alarm) 23,000 25,000 110 LC Networks - 6,000
110 Lock Works Unlimited-Tate Card Access 250 3,000
110 Miscellaneous Items 15,000 -
110 National Fence-Cooley Landing - 1,000
110 Ninyo & Moore-Cooley Landing Inspections 25,000 -
110 Omega Industrial Supply-Graffiti Abatement Supplies 10,000 10,000 110 Pro-Techs Security cameras 10,000 10,000
110 Quality Plumbing 5,000 6,000
110 Real Time Locksmith - 2,500
110 R & S Erection of San Mateo (PD & Corp Yard gate repair) - 10,000 110 Simonds Machinery-Cooley Landing Sewer Pumps 5,000 - 110 Tap Plastic - 1,000
110 Terminix-Rodent Control 2,500 4,000
110 Vortex door 20,000 20,000
110 Building Maintenance - -
222 AAA Smart Alarm company 2,000 2,000
222 Miscellaneous 1,000 1,000
222 Building Maintenance - -
520 Global Industrial-trashcans - 6,000
530 A-1 Septic Tank Service @ Cooley Landing - 5,000
530 Building Maintenance - Alarm and others 32,000 32,000 530 Degree HVAC 1,000 1,000
530 Everon 12,876 12,876
530 Elevator - 1,000
530 Misc. 50,000 50,000
530 Rodent Control - 2,500
530 Simonds Machinery-Cooley Landing Sewer Pumps - 10,000 Subtotal 476,626 391,876
54250 Landscape/Parks Maintenance
110 Ciardella's Garden 20,000 20,000
110 Home Depot 10,000 5,000
110 Horizon 15,000 15,000
110 Miscellaneous 5,000 -
110 Playground Unlimited 10,000 -
110 Ross Recreation Equipment- Playgrounds parts 20,000 10,000 Subtotal 80,000 50,000
DB-52
311
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : PW / Maintenance (21213)
Fund Detail Adopted FY 26 Adopted FY 27
54260 Vehicle Maintenance Service
110 A1 Auto Service & Towing - 2,500
110 Cardenas Tire - 6,500
110 Image Auto Contract 44,000 44,000
110 Vehicle Maintenance Service - -
201 A1 Auto Service & Towing - 2,000
201 Cardenas Tire - 5,000
201 Image Auto Contract 4,500 4,500
201 Vehicle Maintenance Service - -
203 Miscellaneous 5,000 5,000
203 MME Hayward 7,500 7,500
203 San Jose Mission Ford 8,000 8,000
203 Vehicle Maintenance Service - -
221 Image Auto Contract 5,000 5,000
221 Riche's Tires - Bucket Truck 2,000 2,000
Subtotal 76,000 92,000
54270 Equipment Maintenance
110 AAA Forklift General Maintenance - Lawn mowers, tractor, forklift, compressor 20,000 20,000 201 AAA Forklift (equipment PM Program) 17,000 17,000
201 Pulgas two mini round about maintenance and upkeep - 10,000 201 Riche's tire 5,000 5,000
203 MME 3,000 3,000
203 RoadSafe Traffic Systems 4,000 4,000
222 Calcon System-SCADA System 9,500 9,500
222 Peterson Power Contract 30,000 30,000
222 Technology-fuel system 5,000 12,000
Subtotal 93,500 110,500
54280 Janitorial Services
110 Frank & Grossman 150,000 150,000
110 Karla's Janitorial - 66,500
530 Janitorial services 25,000 30,000
Subtotal 175,000 246,500
54410 Land and Building Lease and Rentals
110 Corp Yard lease (85%) 280,000 285,600
203 Land and Building Lease and Re 17,000 17,340
510 Land and Building Lease and Re 33,000 33,000
Subtotal 330,000 335,940
54430 Equipment Lease and Rentals
110 Equipment Lease and Rentals 5,000 -
222 Equipment Lease and Rentals 5,000 -
Subtotal 10,000 -
54440 Information Technology
111 Information Technology 2,500 -
Subtotal 2,500 -
54990 Other Property Services
110 Corp Yard Paving & Striping 10,000 10,000
110 Level 2 charging station 15,000 -
203 Runneymede Drainage Channel - 3,500
Subtotal 25,000 13,500
55300 Communications
110 Two-Way Radios Annual Subscription (for emergency use) 15,000 10,000 Subtotal 15,000 10,000
55400 Advertising/Notices
110 San Mateo Daily Journal and the Bay Area Trade Journal - 5,000 Subtotal - 5,000
DB-53
312
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : PW / Maintenance (21213)
Fund Detail Adopted FY 26 Adopted FY 27
55410 Printing and Binding
110 Printing and Binding 200 1,000
Subtotal 200 1,000
55600 Meeting and Catering
110 Safety Training Meetings 2,500
110 Team Building (quarterly) 2,500 1,500
110 Meeting and Catering -
Subtotal 5,000 1,500
55800 Transportation and Training
110 Admin Training (Secretary) 2,000 -
110 Du-All Safety-safety trainings 20,000 20,000
110 ▲ Playground Certifications for Maintenance Staff 5,000 2,500 110 Transportation and Training - -
110 ▲ USA North-Underground Utility Marking-Recertification - 13,650 Subtotal 27,000 36,150
55910 Memberships/ Dues
110 Menlo Park Fire District - Annual Corp Yard inspection 4,000 4,000 110 SMC Environmental Health - 900
110 SMC Environmental Health - Corp Yard Annual Haz-Mat Inspection Fee 1,500 2,500 110 SMC Environmental Health-Cooley Landing 2,000 2,500 110 USA North-Annual Fees - 2,500
203 California Rural Water Association 3,500 3,500
203 Regional Water Board Annual Permit Fee 20,000 20,000 203 State Water Board Annual Waste Discharge Fee 1,500 1,500 222 Menlo Park Fire District - Annual Inspection of Pump Station 1,000 1,000 222 San Mateo County Environmental Health - Pump Station Annual Haz-Mat Inspection Fee 2,000 2,000 222 State of California Board of Equalization - Pump Station Underground Storage Tank 850 850 222 State of California Department of Toxic Substance Control - Annual Fee for Pump Station 2,000 2,000 510 Bay Area Air Quality Management District - Annual Permit Renewal - Gloria Way Well 1,000 1,500 Subtotal 39,350 44,750
60101 Hardware Supplies
110 Hardware Supplies, Kimball Midwest 5,000 5,000
203 Ennis Flint-storm drain (flow to bay stencils) 5,000 - 203 Kimball Midwest 2,500 2,500
203 Sand & bags 10,000 10,000
222 Hardware Supplies 2,500 1,000
Subtotal 25,000 18,500
60102 Vehicle Maintenance Supplies
110 Vehicle Maintenance Supplies- Amazon, Auto Zone 2,000 2,750 203 Vehicle Maintenance Supplies 2,000 2,000
Subtotal 4,000 4,750
60103 Equipment Maintenance Supplies
201 Equipment Maintenance Supplies 500 -
201 Home Depot 500 -
201 Western States Tools 1,500 3,000
203 Equipment Maintenance Supplies - 1,000
222 Equipment Maintenance Supplies 3,000 2,000
Subtotal 5,500 6,000
60104 Asphalt and Other Street Supplies
201 Advance Construction Supplies 12,000 12,000
201 Bormann's Steel 2,500 2,500
201 Grainger 10,000 10,000
201 Graniterock 5,000 -
201 Lyngso Garden 10,000 -
201 Zumar 5,000 20,000
Subtotal 44,500 44,500
DB-54
313
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : PW / Maintenance (21213)
Fund Detail Adopted FY 26 Adopted FY 27
60105 Electrical Supplies
110 Amazon 2,000 2,000
110 CED Bay Area 2,500 8,000
110 Home Depot 1,000 1,000
221 CED Bay Area 15,000 15,000
Subtotal 20,500 26,000
60107 Sidewalk Maintenance
110 Material for sidewalk repair - NEW - 15,000
Subtotal - 15,000
60108 Janitorial Supplies
110 Amazon 5,000 5,000
110 Home Depot 3,000 3,000
110 Resource Solutions of SF Group 18,000 18,000
Subtotal 26,000 26,000
60109 Landscape & Park Maintenance Supplies
110 Cariradellas Garden 5,000 5,000
110 Home Depot 5,000 5,000
110 Horizon 20,000 20,000
110 Site One-buildings irrigation Rain Master controllers 6,500 6,500 110 Trees and Shrubs (Boething Treeland Farms) 4,000 4,000 Subtotal 40,500 40,500
60202 Uniform & Safety Apparel
110 Cintas uniform 20,000 28,000
110 Miscellaneous 1,000 1,000
110 Safety Boots 2,500 2,750
Subtotal 23,500 31,750
60203 Safety Supplies
110 Safety Supplies - -
110 Kimball Mid West 5,000 5,000
110 Bay Area First Aid & Supplies 5,000 5,000
Subtotal 10,000 10,000
60207 Utilities
110 Utilities 250,000 250,000
201 Utilities 70,000 70,000
221 Caltrans 8,132 8,132
221 IWORQ 5,500 5,500
221 Utilities 65,000 65,000
Subtotal 398,632 398,632
60208 Fuel
110 Chevron Texaco 5,000 12,000
110 Kamps Propane - 5,000
110 RCSD-fuel 10,000 -
201 Chevron Texaco 10,000 10,000
201 RCSD Fuel 1,000 -
222 Valley Oil-Diesel Fuel 7,000 10,000
Subtotal 33,000 37,000
60209 Other Operating Supplies
110 Other Operating Supplies 10,000 -
221 Holiday lights 5,000 5,000
221 Other Operating Supplies - -
221 USA Marking Paints - 5,000
510 USA Marking Paints - 10,000
520 Grapplers - trash pickers 2,500 2,500
520 ▲ New sweeping signs, posts, brackets - 50,000
520 Street Trashcans Replacement 10,000 15,000
Subtotal 27,500 87,500
DB-55
314
FY 2027
Expense Detail request (Excl. Payroll)
Department / Division : PW / Maintenance (21213)
Fund Detail Adopted FY 26 Adopted FY 27
60301 General Office Supplies
110 General Office Supplies - 2,500
Subtotal - 2,500
70310 Other
111 Corp Yard Security Project (Camera) moved from 110-99991-70310 50,000 50,000 Subtotal 50,000 50,000
70410 Furniture & Equipment (Under $5000)
110 Parks & Facilities Trashcan Replacement 15,000 -
110 Furniture & Equip Under$5k - -
Subtotal 15,000 -
70420 Furniture & Equipment (Over $5000)
222 Pump Station SCADA System 15,000 15,000
Subtotal 15,000 15,000
70510 Rolling Stock: Vehicles, Mower, etc.
112 Electric forklift 30,000 -
112 ▲ Electric Mini Sweeper - NEW - 350,000
112 Light tower 20,000 -
112 Mower 20,000 -
201 ▲ Backhoe - NEW - 150,000
Subtotal 70,000 500,000
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Division Total 3,309,108 3,566,848 DB-56
315
FY 2027
Expense Detail request (Excl. Payroll)
Department / Fund: East Palo Alto Sanitary District (Fund 530) Fund Division Adopted FY 26 Adopted FY 27
53101 Staff Augmentation
530 21212 Staff Augmentation - Temp Employee through AppleOne 39,520 80,000 Subtotal 39,520 80,000
53201 Other Professional and Technic
530 13131 Other Professional and Technic 10,000 -
530 21212 EPASD Data Service Tax Roll 2,300 -
530 21212 Office Expenses 5,000 -
530 21212 Palo Alto Treatment 2,700,000 2,875,884
530 21212 West Bay Contract 1,200,000 1,800,000
530 ⟳ 21212 Freyer & Lauretta Engineering Services- both cost recovery and staff aug 350,000 100,000 530 ⟳ 21212 EKI Technical Services - On Call - 100,000
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 -
Subtotal 4,454,300 4,875,884
53210 Legal and Accounting Services
530 12121 Legal and Accounting Services - Legal Advise-Colantuono 40,000 41,600 530 ▲★ 13131 EDS Tax Roll Consultant - 30,000
530 13131 EPASD Data Service Tax Roll - 2,300
530 13131 Audit 25,000 20,600
530 13131 Bartel (GASB68) Report 2,100 3,300
530 13131 County PPT Fees 10,000 10,000
530 13131 New GASB Implementation 2,000 -
530 13131 OPEB Actuarial Study (2 Reports) 8,000 5,000
Subtotal 87,100 112,800
54240 Building Maintenance
530 21213 Building Maintenance
530 21213 Building Maintenance - Alarm and others 32,000 32,000 530 21213 Degree HVAC 1,000 1,000
530 21213 Rodent Control - 2,500
530 21213 Elevator - 1,000
530 21213 Everon 12,876 12,876
530 21213 A-1 Septic Tank Service @ Cooley Landing - 5,000 530 21213 Simonds Machinery-Cooley Landing Sewer Pumps - 10,000 530 21213 Misc. 50,000 50,000
Subtotal 95,876 114,376
54280 Janitorial Services
530 21213 Janitorial Services 25,000 30,000
Subtotal 25,000 30,000
55300 Communications
530 21212 EPASD Landlines and internet - 9,000
530 95952 Communications 15,040 15,040
Subtotal 15,040 24,040
55400 Advertising
530 21212 Advertising - Publication & Legal Notice 25,000 5,000 Subtotal 25,000 5,000
55410 Printing and Binding
530 21212 Printing and Binding - 500
Subtotal - 500
55600 Meeting and Catering
530 21212 6 Advisory Commission Meetings, any meetings at EPASD - 1,500 Subtotal - 1,500
Detail
DB-57
316
FY 2027
Expense Detail request (Excl. Payroll)
Department / Fund: East Palo Alto Sanitary District (Fund 530) Fund Division Detail Adopted FY 26 Adopted FY 27
55800 Transportation and Training
530 10101 Training for board members 7,500 7,500
530 12121 Special District Conference 2,000 2,000
530 21212 MMANC Women’s Leadership Summit Conference - Sacramento, CA - 550 530 21212 Municipal Management Association Northern CA Conference - Yosemite - 2,800 530 21212 CWEA Annual Conference & Expo (AC26) - 3,400
530 21212 Transportation and Training 11,000 -
Subtotal 20,500 16,250
55910 Membership and Dues
530 21212 CWEA Membership (PW Director, Utility Manager, Admin Asst) - 753 530 21212 APWA Membership (PW Director, Utility Manager, Admin Asst) - 869 530 21212 California Special Districts Association (CSDA) - 2,000 530 21212 Membership and Dues 30,000 -
Subtotal 30,000 3,622
55920 Special Events
530 21212 Special Events 500
Subtotal - 500
60207 Utilities
530 21212 Utilities - PG&E, Water, Recology 54,000 50,000 Subtotal 54,000 50,000
60208 Fuel
530 21212 Fuel - 250
Subtotal - 250
60209 Other Operating Supplies
530 21212 Other Operating Supplies 8,500 5,000
Subtotal 8,500 5,000
60301 General Office Supplies
530 21212 General Office Supplies 10,000 1,000
Subtotal 10,000 1,000
60302 Postage and Delivery
530 21212 Postage and Delivery 5,000 -
Subtotal 5,000 -
70410 Furniture & Equipment Under $5K
530 ▲ 21212 Furniture & Equip Under$5k - 12,000
Subtotal - 12,000
90310 Overhead Allocation
530 95951 Cost allocation 939,297 1,055,900
530 95951 Insurance Internal Service allocation 84,318 - 530 95952 IT Overhead Allocation 99,758 172,937
Subtotal 1,123,373 1,228,837
▲ One-time expense
⟳ Periodic expense (ex: every 5 years)
★ Strategic Priorities Workplan Fund 530 Total 5,993,209 6,561,059 DB-58
317
318
CITY OF EAST PALO ALTO · PUBLIC WORKS DEPARTMENT FY 2026–2027 & FY 2027–2028 FY 2026–2027 17 Projects This Fiscal Year
Community Facilities $620K (1.56%)
# Project Name Amount Status
FA-03 EV Charging Stations (Citywide) $580,000 Appropriated N/A Civic Center EV Charging Station $40,000 Planned
Parks & Open Space $30M (75.27%)
# Project Name Amount Status
PK-26 Field at Civic Center $30,000,000 Planned
Sewer Projects $2.695M (6.76%)
# Project Name Amount Status
EPASD 1.1 EPASD Sewer Project 1.1 $1,000,000 Appropriated EPASD 1.2 EPASD Sewer Project 1.2 $1,695,000 Appropriated Information Technology $1.158M (2.91%)
# Project Name Amount Status
N/A IT Strategic Plan $1,158,000 Appropriated
Storm Related Projects $880K (2.21%)
# Project Name Amount Status
SD-04 Street Sweeping Signage $80,000 Appropriated
SP-16 San Francisquito Creek Sediment Removal $800,000 Appropriated Streets & Transportation $4.125M (10.35%)
# Project Name Amount Status
ST-07 Annual Street Resurfacing Project (ongoing) $2,300,000 Appropriated ST-09 Bicycle & Pedestrian Improvements $500,000 Appropriated ST-11 Sidewalk Repair Program $250,000 Planned
ST-15 Signage & Striping Improvements $50,000 Appropriated ST-33 Woodland Ave Street Improvements $700,000 Appropriated ST-39 Fordham Street Roundabout Project $75,000 Appropriated ST-45 University Ave Grand Corridor Pilot Program $250,000 Planned Water Supply $380K (0.95%)
# Project Name Amount Status
WS-01B Emergency Water Connects – PA Park Mutual $150,000 Appropriated WD-06 Fire Hydrant Replacement (ongoing) $230,000 Appropriated Appropriated $9.318M
Partially Funded $0
Planned $30.54M
TOTAL EXPENDITURE — 17 PROJECTS $39,858,000
Legend: Appropriated Partially Funded Planned
City of East Palo Alto · Public Works Department · (650) 853-3130 Page 2 of 5319 CITY OF EAST PALO ALTO · PUBLIC WORKS DEPARTMENT FY 2026–2027 & FY 2027–2028 FY 2027–2028 20 Projects This Fiscal Year
Community Facilities $140.45M (78.64%)
# Project Name Amount Status
FA-26 Civic Center $120,000,000 Planned
FA-06 Corporation Yard $200,000 Planned
FA-05 New Police Department Building $20,000,000 Planned N/A Senior Rehabilitation Facility $250,000 Planned
Parks & Open Space $1.115M (0.62%)
# Project Name Amount Status
PK-15 Bell Street Park Restroom $500,000 Planned
PK-12 Hetch Hetchy Aqueduct Linear Park $465,000 Planned PK-13 Hazelwood Way Park Access $150,000 Planned
Sewer Projects $13.142M (7.36%)
# Project Name Amount Status
EPASD 1.1 EPASD Sewer Project 1.1 $5,042,000 Planned
EPASD 1.2 EPASD Sewer Project 1.2 $8,100,000 Planned
Streets & Transportation $7.9M (4.42%)
# Project Name Amount Status
ST-07 Annual Street Resurfacing Project (ongoing) $2,300,000 Planned ST-09 Bicycle & Pedestrian Improvements $500,000 Planned ST-10 New Sidewalk, Curb & Gutter Program $2,000,000 Planned ST-11 Sidewalk Repair Program $250,000 Planned
ST-03 Safe Routes to School $100,000 Planned
ST-33 Woodland Ave Street Improvements $2,300,000 Planned ST-39 Fordham Street Roundabout Project $450,000 Planned Water Supply $15.99M (8.95%)
# Project Name Amount Status
WD-06 Fire Hydrant Replacement (ongoing) $230,000 Planned WD-26 Water Storage Tank Project $8,000,000 Planned
WS-03A New Storage Tank East of Hwy 101 $6,000,000 Planned WD-08 East Bayshore Water Infrastructure Impr $1,760,000 Planned Planned $178.597M
TOTAL EXPENDITURE — 20 PROJECTS $178,597,000
Legend: Appropriated Partially Funded Planned
City of East Palo Alto · Public Works Department · (650) 853-3130 Page 4 of 5320 PUBLIC HEARING ITEM 7.2

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 23, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
Esther Aguirre, Senior Accountant
SUBJECT: Establishing the Fiscal Year 2026-27 Appropriation Limit Recommendation
Adopt a Resolution establishing the FY 2026-27 Appropriation Limit of $45,312,635.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority: Ensure Our Financial and Organizational Health Background
In November 1979, the voters of the State of California approved Proposition 4, commonly known as the Gann Initiative. The proposition created Article XIIIB of the State Constitution designed to limit the growth in appropriations of all entities of government to changes in cost of living and population. Further, in 1980, the State Legislature amended the Government Code to implement Article XIIIB.

In 1990, California voters passed Proposition 111 providing adjustment formulas more responsive to local growth issues, as well as requirement for an annual review of the Gann Limit calculations to be performed by city auditors each fiscal year. Section. 1.5. of Article XIIIB (Proposition 111) changed the annual adjustment factors beginning with the FY 1990-91 Appropriation Limit. After that point, on an annual basis, local entities may choose between whichever is greater: the change in per capita income or assessed valuation due to nonresidential construction within the City. To determine the population factor, the entity can select the greater of population growth either within the City or the County. Staff determines the 321
PUBLIC HEARING ITEM 7.2
appropriation limit associated with each fiscal year budget. The City Council is required to adopt a limit on appropriations subject to a formula outlined in the State Constitution Article XIIIB.

Analysis
The attached calculation of the appropriation limit follows the formula established in the California Constitution. Not all revenues are restricted by the limit; only those that are referred to as “proceeds of taxes.” Thus, attention must be given to what revenues fall into that category.

Total revenues are classified either as “proceeds” or “non-proceeds” of taxes. In FY 2026-27, budgeted revenue sources total $72,061,731 (See Attachment 2: Schedule 1 and Schedule 2).

Total revenue sources are reduced by non-proceeds of taxes and other qualifying exclusions in the amount of $36,217,514; leaving $35,844,217 net revenue sources subject to limitation (See Attachment 2: Schedule 1).

GANN Limit Law provides some choice in the factors applied to determine the limit each fiscal year. The basic determinant factors are (1) the change in the cost of living, and (2) the change in population. See Government Code Section 7901. To determine the change in the cost of living, the City may choose from either: a) the change in California per capita income as determined by the California Department of Finance, or b) the percentage change in local assessment tax roll from the prior year attributable to the addition of non-residential new construction as calculated by the San Mateo County Assessor’s Office. To determine the change in population, the City may choose either: a) the percentage change within the City, the or b) the percentage change within San Mateo County as determined by the California Department of Finance. For each factor, staff recommends the choice resulting in the maximum increase allowable.

The FY 2026-27 appropriation limit is determined by taking the prior year adjustment ending limit of $43,188,407 and multiplying by the per capita income factor and the County population rate factor. The appropriation limit is adjusted by the factored decrease in population in the County of San Mateo (-0.03%), and by the factored increase in per capita personal income (4.95%). The FY 2026-27 calculated appropriation limit applying such factors is $45,312,635 (See Attachment 2: Schedule 3).

The City’s calculated net revenue “subject to limitation” is $35,844,217 (noted above) is subtracted from the appropriation limit of $45,312,635 leaving a remaining appropriations capacity of $9,468,418 or 20.90%. (See Attachment 2)
In conclusion, the City’s 2026-27 budget appropriations that are subject to limitation are under the calculated appropriation limit and thus in compliance with Article XIIIB of the State Constitution.

It is important for the Council and the public to note that the City’s Appropriations Subject to Limit are $9,468,418 or 20.90%, below the FY 2026-27 Appropriation Limit allowed by Statute. If the City ends a fiscal year having more Appropriations Subject to Limit than its Appropriation Limit allows, the City must return the excess either by reducing taxes or fees. Alternatively, the voters of the City may, by majority approval, increase the Appropriations Limit of the City 322
PUBLIC HEARING ITEM 7.2
Fiscal Impact
There is no fiscal impact for this item.

Public Notice
Notice of this agenda item by publishing a notice of the hearing date in “San Mateo County Times” and, also, posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s.

The public was provided notice by making the agenda and report available on the City’s website and on bulletin boards located at (1) City Hall: 2415 University Avenue, East Palo Alto, (2) Library:
2415 University Avenue, East Palo Alto, and (3) 1960 Tate Street, East Palo Alto.

Attachments

1. Resolution.

2. Appropriation Limit Calculation.
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Resolution No. XX-2026 1 of 2
RESOLUTION NO. XX– 2026

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
ESTABLISHING AN APPROPRIATION LIMIT OF $45,312,635 FOR FISCAL YEAR 2026-27 WHEREAS, the City is required to adopt a limit on appropriations subject to a formula outlined in Article XIIIB of the California Constitution; and
WHEREAS, the California Constitution also requires a method of inflation be chosen; and WHEREAS, the City of East Palo Alto elects to use the following factors relevant to the calculation of the Appropriation Limit for FY 2026-27:
 Per Capita Personal Income Change: +4.95% (Plus Four Point Ninety-Five Percent)
 County of San Mateo Population Adjustment: -0.03% (Minus Three Hundredths Percent)
WHEREAS, a resolution establishing the annual appropriation limit must be adopted at a regularly scheduled meeting or noticed special meeting of the City Council; and WHEREAS, the City Council held public hearings and adopted the Fiscal Year 2026-27 budget on June 16, 2026, and appropriations therein were determined within the calculated appropriation limit; and
WHEREAS, a determination of the FY 2026-27 Appropriations Limit has been made available to the public fifteen days prior to the meeting held.

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 this reference into this action;

2. Sets the Appropriation Limit for Fiscal Year 2026-27 at $45,312,635 pursuant to the calculation prepared in accordance with local law, contained within Exhibit A, which is attached hereto and incorporated by this reference;

3. Finds and determines that the Appropriation Limit of $45,312,635 exceeds the Appropriations Subject to Limitation calculated in the amount of $35,844,217 by $9,468,418; therefore, the City of East Palo Alto complies with the provisions of Article XIII B of the State Constitution; and

4. 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.
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Resolution No. XX-2026 2 of 2
PASSED AND ADOPTED this 16
th day of June 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Webster Lincoln, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
325

CITY OF EAST PALO ALTO
Appropriation Limitation Calculation
2026-27

EXHIBIT A
Executive Summary
An annual calculation of the City's appropriation limitation is required by Article XIIIB of the California Constitution. City expenditures may increase only in relation to changes in per capita income or growth in non-residential assessment valuation, whichever is greater, and the population change for the City or County, whichever is greater.

I. Determination of Appropriation Limit:
2026-27 Appropriation Limit (Schedule 3) 45,312,635 $
II. Determination of Appropriations Subject to Limitation:
2026-27 Revenue Sources for Appropriations (Schedule 2) 72,061,731 $ Deductions of Exempt Revenues and Qualified Capital (Schedule 1) (36,217,514) 2026-27 Appropriations Subject to Limitation (Schedule 1) 35,844,217 $ III. Amount Under/(Over) Appropriation Limit (I-II) 9,468,418 $ IV. Remaining Capacity as a Percent of FY 2026-27 Limit 20.90% The City's 2026-27 proposed budget appropriations that are subject to limitation are $9,468,418 million under the limitation as shown below:
326

CITY OF EAST PALO ALTO

CALCULATION OF APPROPRIATIONS SUBJECT TO LIMITATION
2026-27
SCHEDULE 1
Total Revenue Sources For Appropriations (Schedule 2) 72,061,731 $ Exclusions:

Non-Proceeds of Taxes (Schedule 2) (36,217,514)
Net Revenue Sources Subject to Limitation 35,844,217 $
327

CITY OF EAST PALO ALTO

SUMMARY OD REVENUES BY CATEGORY
2026-27
SCHEDULE 2
Budgeted Budgeted
Proceeds Non-Proceeds Total
of Tax of Tax Revenues
Taxes
Property Taxes 18,054,710 PT 23,193,161 5,138,450 $
Sales and Use Tax 5,827,100 SU 6,937,100 1,110,000
Utility Users Tax 2,160,558 UU 2,160,558 -
Transient Occupancy Tax 2,750,000 TO 2,750,000 -
Other Taxes 4,332,690 OT 6,058,244 1,725,554
$ 7,974,004 33,125,058 $ 41,099,063 $
Franchise Fees
Franchise Fees - $ FF $ 1,371,051 1,371,051 $
Licenses, Fees, and Permits
Building and Other Permits - $ BO $ 1,289,509 1,289,509 Rent Stabilization Fees - RS 852,390 852,390
NPDES - NP 140,000 140,000
Water Capacity system/ supply fee - WC 1,205,036 1,205,036 Development Impact Fees - DIF 5,311,565 5,311,565
$ 8,798,501 - $ 8,798,501 $
Fines and Forfeitures
Vehicle Code and Parking Fines - $ VP $ 525,000 525,000 $ Other Fees and Fines - OF 685,325 685,325
$ 1,210,325 - $ 1,210,325 $
Grants and Intergovernmental
California SLESF - $ SLE $ 100,000 100,000 $
California SB2 - SB2 30,600 30,600 $
Subventions and Reimbursements 42,716 SA 42,716 -
Annual Street, Woodland Ave, Fordham & other CIP - AH 1,230,000 1,230,000 Miscellaneous Grants - MG 7,500 7,500
$ 1,368,100 42,716 $ 1,410,816 $
Charges for Current Services
Sewer Service Fee SS $ 5,200,000 5,200,000 $
Solid Waste and Recycling Charges - $ SW $ 3,461,565 3,461,565 $ Water Capital Replacement Fees - WC 1,260,000 1,260,000 Building Charges - BC 697,066 697,066
Planning Charges - PC 182,600 182,600
Police Services - PS 20,000 20,000
Miscellaneous Charges - MC 38,502 38,502
$ 10,859,733 - $ 10,859,733 $
Use of Money and Property (ex. Interest)
Facility Use and Leases - FU 506,360 506,360
Penalties - PE 70,000 70,000
$ 576,360 - $ 576,360 $
328

CITY OF EAST PALO ALTO

SUMMARY OD REVENUES BY CATEGORY
2026-27
SCHEDULE 2
Budgeted Budgeted
Proceeds Non-Proceeds Total
of Tax of Tax Revenues
Other Miscellaneous
Solid Waste Reimbursements - $ SW $ 280,000 280,000 $
Other - OT 1,075,124 1,075,124
$ 1,355,124 - $ 1,355,124 $
Operating Budget Subtotal 33,167,774 $ 33,513,198 $ 66,680,972 $ Percent of Total 49.74% 50.26% 100.00%
Interest Allocation 2,676,443 $ INT $ 5,380,759 2,704,316 $ TOTAL 35,844,217 $ 36,217,514 $ 72,061,731 $
329

CITY OF EAST PALO ALTO

APPROPRIATIONS LIMIT COMPUTATION

CUMULATIVE GROWTH RATE
2026-27
Exhibit A

ASSESSED

PER CAPITA VALUATION

FISCAL BEGINNING POPULATION INCOME CHANGE ENDING

YEAR LIMIT FACTOR FACTOR FACTOR LIMIT
2007-08 15,463,621 1.0139 1.0442 N/A 16,371,5582008-09 16,371,558 1.0126 N/A 1.0920 18,103,0002009-10 18,103,000 1.0121 N/A 1.1120 20,374,1162010-11 20,374,116 1.0117 N/A 1.0080 20,777,3932011-12 20,777,393 1.0080 N/A 0.9810 20,545,6842012-13 20,545,684 1.0098 1.0377 N/A 21,529,1952013-14 21,529,194 1.0109 1.0512 N/A 22,878,1722014-15 22,878,172 1.0117 N/A 1.1160 25,830,7652015-16 25,830,765 1.0100 1.0382 N/A 27,085,6752016-17 27,085,675 1.0091 1.0537 N/A 28,799,8912017-18 28,799,891 1.0056 1.0369 N/A 30,029,838 2018-19 30,029,838 1.0065 N/A 1.0379 31,369,805
2019-20 31,369,805 1.0028 1.0385 N/A 32,668,7602020-21 32,668,760 0.9987 1.0373 N/A 33,843,2512021-22 33,843,251 0.9925 1.0573 N/A 35,514,1012022-23 35,514,101 0.9908 1.0755 N/A 37,844,0182023-24 37,844,018 0.9957 1.0444 N/A 39,354,3382024-25 39,354,338 0.9950 1.0362 N/A 40,575,0702025-26 40,575,070 1.0000 1.0644 N/A 43,188,407 Population fac 2026-27 43,188,407 0.9997 1.0495 N/A 45,312,635Sources:State Dept.of Finance, Budget Resolutions & Prior Year Appropriation Limits, San Mateo County Assessor's OfficeN/A = Not applicable; calculation formula uses the higher of per capita or assessed valuation factors multiplied by population factor.

Notes:Population factor: San Mateo County, ((-0.03+100)/100 =0.9997)Per Capita Income Factor, ((4.95+100)/100 = 1.0495)Total Change Factor (0.9997 x 1.0495) = 1.04918515 330
COUNCIL REPORTS 7.3

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 23, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: John D. Lê, City Attorney
SUBJECT: Resolution Updating City Council Procedures for Meetings Recommendation
Adopt a resolution amending the City of East Palo Alto “Code of Ethics and Conduct for Elected and Appointed Officials” to:

1. Comply with SB 707 by adopting formal policies addressing disruptions of telephonic or internet services during meetings;

2. Clarify the procedures for the orderly receipt of public comment during City Council meetings; and

3. Clarify the procedure for responding to meeting disruptions by members of the public participating in-person or by remote access, consistent with Government Code §§ 54957.95 and 54957.96.

Executive Summary
The proposed amendments regarding compliance with SB 707 for technical disruptions with remote access will require the City Council to take a recess, attempt to restore service, and not resume the meeting for one hour, unless service is restored earlier.

The amendments will also set reasonable time limits for public comments, give in-person speakers priority over remote speakers, and prohibit the use of large signs in the meeting room that cause actual disruptions.
331
COUNCIL REPORTS 7.3
The amendments will also clarify that members of the public (in-person and remote) may be removed from City Council meetings for causing an actual disruption that precludes conducting the business of the City, provided that the person is first notified and warned before removal occurs.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
• Priority: Civic Engagement
• Priority: Governance, Organizational Strength, and Fiscal Sustainability Background
On June 1, 2021, the City of East Palo Alto City Council adopted Resolution No. 75-2021 adopting the City of East Palo Alto “Code of Ethics and Conduct for Elected and Appointed Officials,” and repealed the prior version titled “Council Rules of Procedure.” The Code of Ethics and Conduct for Elected and Appointed Officials is designed to describe the manner in which Councilmembers and members of City boards, commissions, and committees should treat one another, City staff, constituents, and others they come into contact with while representing the City of East Palo Alto. The Code of Ethics and Conduct for Elected and Appointed Officials outlines ethical standards, conduct rules, the City Council agenda setting process, and policy enforcement provisions.

On July 16, 2024, the City of East Palo Alto City Council adopted Resolution No. 67-2024 amending the City of East Palo Alto “Code of Ethics and Conduct for Elected and Appointed Officials.”
On October 3, 2025, the California Legislature enacted Senate Bill 707 (SB 707), amending the Ralph M. Brown Act to require, among other actions, the adoption of formal policies addressing disruptions of telephonic or internet services during meetings, and to clarify the procedure for responding to disruptions to meetings by members of the public participating in-person or by remote access. The deadline to comply with the requirement regarding disruptions of telephonic or internet services during meetings is July 1, 2026.

The City Council desires to update the Code of Ethics and Conduct for Elected and Appointed Officials in light of the requirements of SB 707, to clarify the procedures for receiving public comments at City Council meetings, and to clarify the procedures for responding to an actual disruption of a Council meeting consistent with Government Code §§ 54957.95 and 54957.96.

Analysis
The proposed amendments to the Code of Ethics and Conduct for Elected and Appointed Officials will enable the City to comply with the requirement of SB 707 regarding disruptions of telephonic or internet services during meetings, as well as established case law requiring that a member of the public may not be removed from a public meeting unless they cause an “actual 332
COUNCIL REPORTS 7.3
disruption” that impedes the orderly conduct of the meeting. (Norse v. City of Santa Cruz, 629 F.3d 966 (9th Cir. 2010) [holding that expulsion of member of the public from city council meeting required “actual disruption,” not merely any violation of the “decorum rules” adopted by the city council]; Acosta v. City of Costa Mesa, 718 F.3d 800 (9th Cir. 2013) [finding ordinance barring “disorderly, insolent, or disruptive behavior” at city council meetings to be facially overbroad].) Specifically, the proposed amendments are intended to:
• Clarify procedures for the chair, Council Members, and staff to follow in the event of telephonic or internet service disruption during meetings. • Ensure staff make a good faith effort to restore service in the event of disruption. • Define how and when the City Council may reconvene in connection with service disruption.

The proposed amendments will also provide the Council Members and members of the public with clarity regarding the procedures for the orderly receipt of public comment during City Council meetings. Specifically, the proposed amendments are intended to:
• Clarify procedures for receiving comments from the public via in-person attendance and virtual attendance at City Council meetings, including giving in-person speakers priority over remote speakers. Adopt reasonable time limits for public comments, including when there are more than 20 speakers for an item on an agenda. Adopt reasonable restrictions barring the use of signs by members of the public in the City Council meeting room that present actual disruptions to the meetings, including signs that obstruct views of the Council Members, obstruct access to exits etc. Clarify the procedure for responding to disruptions to meetings by members of the public participating in-person or by remote access, including the requirements codified at Government Code sections 54957.95 and 54957.96 that the conduct must cause an actual disruption, and for notifying and warning the person causing the disruption that they may be removed from the meeting if the disruption does not promptly cease.

Fiscal Impact
There is no fiscal impact for this item.

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.

Environmental
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.
333
COUNCIL REPORTS 7.3
Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not entail an entitlement.

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. Resolution

1. Draft Amended “Code of Ethics and Conduct for Elected and Appointed Officials, Including Provisions for Conduct at City Council Meetings”
334
Resolution No. XX-2024 1 of 2
RESOLUTION NO. XX– 2026

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AMENDING THE CITY OF EAST PALO ALTO CODE OF ETHICS AND CONDUCT FOR

ELECTED AND APPOINTED OFFICIALS, INCLUDING PROVISIONS FOR CONDUCT AT CITY COUNCIL MEETINGS.

WHEREAS, on June 1, 2021, the City of East Palo Alto City Council adopted Resolution No. 75- 2021 adopting the City of East Palo Alto “Code of Ethics and Conduct for Elected and Appointed Officials,” and repealed the prior version titled “Council Rules of Procedure;” and WHEREAS, the Code of Ethics and Conduct for Elected and Appointed Officials is designed to describe the manner in which Councilmembers and members of City boards, commissions, and committees should treat one another, City staff, constituents, and others they come into contact with while representing the City of East Palo Alto; and
WHEREAS, the Code of Ethics and Conduct for Elected and Appointed Officials outlines ethical standards, conduct rules, the City Council agenda setting process, public meeting procedures, and policy enforcement provisions; and
WHEREAS, on July 16, 2024, the City of East Palo Alto City Council adopted Resolution No. 67-2024 amending the City of East Palo Alto “Code of Ethics and Conduct for Elected and Appointed Officials;” and
WHEREAS, on October 3, 2025, the California Legislature enacted Senate Bill 707, amending the Ralph M. Brown Act to require, among other actions, the adoption of formal policies addressing disruptions of telephonic or internet services during meetings, and to clarify the procedure for responding to disruptions to meetings by members of the public participating in person or by remote access; and
WHEREAS, the deadline to comply with SB 707’s requirement regarding disruptions of telephonic or internet services during meetings is July 1, 2026; and WHEREAS, the City Council desires to update the Code of Ethics and Conduct for Elected and Appointed Officials in light of the requirements of SB 707, to clarify the procedures for receiving public comments at City Council meetings consistent with SB 707 and current custom and practice, and to clarify the procedures for responding to an actual disruption of a Council meeting consistent with Government Code §§ 54957.95 and 54957.96.

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 this reference into this action;

2. Adopts the amended Code of Ethics and Conduct for Elected and Appointed Officials, Including Provisions for Conduct at City Council Meetings, attached hereto as Exhibit A; and 335
Resolution No. XX-2024 2 of 2

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

PASSED AND ADOPTED this 16th day of June 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Webster Lincoln, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
336
Administrative Policy
Code of Ethics and Conduct

Page 1 of 12 ends

East Palo Alto City CouncilJune 23, 2026

East Palo Alto City Council
June 23, 2026