Los Altos Hills City Council
May 22, 2025

1 City Council and FIC Special Meeting Agenda
May 22, 2025
LAH Agenda
September 28.docx j

NOTICE TO PUBLIC
Any writings or documents provided to a majority of the City Council regarding any item on the open session portion of this agenda will be made available for public inspection in the City Clerk’s office located at 26379 Fremont Road, Los Altos Hills, California during normal business hours. These materials will also be made available on the City website at www.losaltoshills.ca.gov subject to Staff’s ability to post the documents before the meeting.

NOTICE IS HEREBY GIVEN THAT A SPECIAL MEETING OF THE

LOS ALTOS HILLS CITY COUNCIL AND FINANCE AND INVESTMENT

COMMITTEE WILL BE HELD ON
THURSDAY, MAY 22, 2025, AT 4:00 P.M.

Meetings of the City Council and Finance and Investment Committee are held in-person. As a courtesy, and in compliance with applicable state law, staff and members of the public may participate in the meeting in person at Town Hall or virtually via Zoom Video Conference.

Members of the City Council may participate remotely from time to time in accordance with the provisions of Government Code section 54953.

To attend the meeting in person:

City Council Chambers, 26379 Fremont Road, Los Altos Hills, CA 94022 To provide Public Comment in person:

Members of the public wishing to speak are requested to complete a speaker card and submit it to the City Clerk at the meeting.

To participate in the meeting via Zoom Video Conference, please follow the instructions below:

Public comment will also be accepted via email at [email protected] prior to the start of the meeting. Written comments will be posted on the website and distributed to the Council.

If you choose to email your comments, please indicate in the subject line “FOR PUBLIC COMMENT” and indicate the item number.

If you wish to submit a public comment during the meeting, please use the following information.

Before speaking, please identify yourself by name and where you reside. The City Council meeting will be live-streamed on the Town’s website and via zoom at the following location:

Town of Los Altos Hills
City Council & Finance and Investment Committee
Special Meeting Agenda

STUDY SESSION
Thursday, May 22, 2025 at 4:00 P.M.

Council Chambers, 26379 Fremont Road

2 City Council and FIC Special Meeting Agenda
May 22, 2025
https://bit.ly/May22CCFICJointMeetingLAH
Webinar ID: 816 6894 1078
Passcode: 94022
Public testimony will be taken at the direction of the Mayor and members of the public may only comment during times allotted for public comments.

CALL TO ORDER (4:00 PM)

1. ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. PUBLIC COMMENT (Public Comment is Limited to Items which are the Subject of the Special Meeting)

4. STUDY SESSION
A. Study Session Regarding Proposed FY25-FY26 Operating Budget and the FY2025- 26 to FY2029-30 Five-Year Capital Improvement Plan (Staff: T. Leung)

5. ADJOURN

ASSISTANCE FOR PERSONS WITH DISABILITIES
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in the meeting, please contact the City Clerk at 650-941-7222. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Copies of all agenda reports and supporting data are available for inspection at Town Hall, 26379 Fremont Road 24 hours in advance of the meeting.

A complete agenda can be found on the Town’s webpage: http://www.losaltoshills.ca.gov. A complete packet of information is available for inspection during the meeting at the table to the back of the Council Chambers and online. Council may take action on any agendized matter in any manner deemed appropriate by Council.

PROPOSED

OPERATING

AND CAPITAL
BUDGET

F O R F I S C A L Y E A R
2025-2026

TOWN OF LOS ALTOS HILLS

CALIFORNIA

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TABLE OF CONTENTS
CITY MANAGER’S BUDGET MESSAGE � � � � � � � � � � � � � � � � � 5 BUDGET PROCESS� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 22 TOWN INFORMATION � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 29

FINANCIAL AND PERSONNEL ALLOCATION
SUMMARIES� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 41 2025-26 City Council Priorities 42
Funds Overview 44
Town Wide Financial Summary 47
General Fund 48
Department Spending 50
Sewer Fund 51
Personnel Allocations 52
DEPARTMENT BUDGETS � � � � � � � � � � � � � � � � � � � � � � � � � � � 56 Department Overview 57
Cost Allocation 58
2025-26 City Council Goals 60
General Administration 64
Finance & Administrative Svcs 82
Public Safety 93
Community Development 98
Community Services 111
Public Works 121
GUIDE TO FIVE‐YEAR CIP � � � � � � � � � � � � � � � � � � � � � � � � � �135

CAPITAL IMPROVEMENT PLAN SUMMARY AND
FUNDING SOURCES � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �139 TOWN POLICIES� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �177 APPENDIX� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �205

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City Manager’s
Budget Message

6 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan City Manager’s Budget Message
City Manager’s Budget Message
To the Residents of the Town of Los Altos Hills, Honorable Mayor, and Members of the City Council:

It is my pleasure to present the FY 2025-26 Operating Budget and the FY 2026–30 Five-Year Capital Improvement Plan for the Town of Los Altos Hills. This marks the second year of the Town’s two-year operating budget, originally adopted for FY 2024–26.

The two-year budget structure provides a long-range planning framework while allowing for mid-cycle updates.

This year’s revisions reflect updated revenue projections, operational needs, and Council direction. The FY 2025-26 Budget is scheduled for formal adoption on June 26, 2025.

The budget serves not only as a financial and operational plan but also as a tool for advancing the City Council’s two-year strategic goals. These goals—first outlined in the 2024 Work Plan and updated during the 2025 goalsetting session—guide investments in infrastructure, service delivery, staffing, and community resilience. While the first year of the two-year budget focused on operations, the second year shifts more attention to capital planning and long-term initiatives.

I am pleased to report that the FY 2025-26 Proposed Budget is structurally balanced—ongoing revenues are sufficient to fund ongoing operating expenditures without relying on one-time resources. Excluding transfers for capital improvement projects, General Fund revenues are $18.5 million and expenditures are $18.1 million. However, the budget includes the planned use of reserves, specifically from the Facilities Replacement Reserve, to support select capital improvement projects. Core priorities remain: enhancing service levels, retaining staff, improving efficiency, supporting technology, complying with state mandates (such as Housing Element and CEQA-related updates), and promoting safety and resilience.

Despite continued economic uncertainty, the Town maintains a strong financial position, bolstered by healthy reserves and sound fiscal management. This budget meets today’s needs while continuing to fund the Town’s long-term priorities with fiscal responsibility.
2025 and 2026 City Council Work Plan
The City Council’s two-year Work Plan outlines the Town’s strategic priorities and is intended to guide decisionmaking and resource allocation through FY 2025-26. The Work Plan is organized into four broad categories:
> Maintaining Quality of Life and Community Character
> Promoting Public Safety
> Increasing Effective Service Delivery and Governance
> Protecting and Maintaining Infrastructure
These categories represent the Council’s focus areas and reflect where time, staff effort, and funding will be directed over the coming year.

The FY 2025-26 Budget aligns with this framework and advances a wide range of initiatives:
> Maintaining Quality of Life and Community Character: The Town is continuing the Housing Element amendment process while investing in community engagement, water conservation efforts, and public outreach through events and publications.
> Promoting Public Safety: Initiatives include emergency preparedness, upgrades to emergency communication systems such as a Town-wide sound study and ALERT SCC, updates to the fire hazard

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 7 City Manager’s Budget Message
severity zone maps, and wildfire risk reduction through defensible space strategies and hazard mitigation work.
> Increasing Effective Service Delivery and Governance: Projects include permitting system upgrades (TRAKiT), cost-of-service and user fee studies, an impact fee analysis, policy and process improvements, and continued updates to financial and administrative systems. > Protecting and Maintaining Infrastructure: Major efforts include the remodel of the Heritage House, improvements to the Corporation Yard, roadway and pathway upgrades, stormwater system enhancements, and ongoing sewer processing and conveyance negotiations with partner agencies.

Additional projects focus on utility undergrounding, broadband expansion, energy efficiency upgrades at Town facilities, and replacement of aging fleet and equipment.

Some projects are long-term and ongoing, while others are new to this Work Plan cycle, with many expected to reach key milestones by FY 2025-26. The Plan is reviewed regularly to ensure progress remains on track and aligned with available resources. Mid-year updates and a year-end summary help the Council adjust priorities as community needs evolve.

A copy of the most current Council Work Plan, including project-level detail, is available at https://www.losaltoshills.ca.gov/544/2024-25-City-Council-Work-Plan.

In 2024, staff observed from several prior workplans that many projects identified each year required more than a single year to complete. This resulted in multiple carryover items from one workplan to the next. To address this, staff proposed a two-year workplan instead of setting priorities annually, aiming to save time and streamline the process. The goal of this shift in the Town’s goal-setting process was to reduce planning workload for staff and better align with the Council’s priorities established at the start of each year.

The two-year workplan adopted by the Council in 2024 included 63 key projects comprising 138 individual milestones.

These projects included adopting the Housing Element, reducing residential burglaries, improving the Town’s permitting system, expanding broadband access for residents, and more.

Throughout the 2024 calendar year, the committees, Council, and staff encountered new challenges and emerging priorities, many of which were incorporated into the workplan. Ultimately, several additional projects were added during the year. A key lesson learned was that projects often took longer than anticipated due to factors such as staff turnover, competing and evolving priorities, state mandates, natural disasters, and other unforeseen events.

By the end of 2024 the Town had completed 20 Projects and 27 are in progress. The chart below shows the current status of the Council work plan.

8 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan City Manager’s Budget Message
Revenues
The FY 2025-26 revenue outlook is strong, with General Fund revenues—including allocations—projected to increase to $18.5 million, a 6.3% increase from final FY 2024-25 estimates and 5.0% over the FY 2024-25 adopted budget. Excluding allocations, General Fund revenues are projected at $15.1 million.

The Town’s largest and most stable revenue source—property tax—continues to show steady growth. Property tax revenues are estimated at $9.5 million for FY 2025-26, a 5.5% increase from final FY 2024-25 estimates.

This growth is supported by a 2.0% CPI adjustment, reassessments following property sales, and an anticipated FY 2025-26 General Fund Revenues ($18.5M)
Property T Property Taxes axes
$9,483,540, 51.1% $9,483,540, 51.1%
Property Taxes
TTaxes Other Than Property axes Other Than Property
$610,750, 3.3% $610,750, 3.3%
Taxes Other Than Property
Franchise Fees Franchise Fees
$691,500, 3.7% $691,500, 3.7%
Franchise Fees
Licenses and Permits Licenses and Permits
$2,012,774, 10.9% $2,012,774, 10.9%
Licenses and Permits
Use of Money and Property Use of Money and Property
$1,030,000, 5.6% $1,030,000, 5.6%
Use of Money and Property Intergovernmental Subventions Intergovernmental Subventions $46,001, 0.2% $46,001, 0.2%
Intergovernmental Subventions
Charges for Services Charges for Services
$1,241,925, 6.7% $1,241,925, 6.7%
Charges for Services
Miscellaneous Revenues Miscellaneous Revenues
$18,000, 0.1% $18,000, 0.1%
Miscellaneous Revenues
Allocations In Allocations In
$3,407,530, 18.4% $3,407,530, 18.4%
Allocations In
Economic Outlook and Fiscal Position
While the Town’s near-term financial position is sound, broader economic uncertainty persists. Inflation remains elevated in select sectors, tariff risks have reemerged, and the yield curve remains inverted. Treasury yields declined in Q1 2025, signaling slowing growth expectations. If interest rates fall further, investment returns will likely decline, reducing General Fund revenues. In this environment, preserving structural balance will require active budget management and continued discipline in both operating and capital spending.

In addition, the Town’s financial outlook remains partially dependent on continued growth in property tax revenues, which are inherently tied to broader economic trends and housing market conditions. Although recent property tax trends have been positive, they do not guarantee future performance, particularly in a volatile economic climate.

Interest earnings have also served as an important revenue source in recent years. While return on investments is anticipated, projecting future yields based on past performance carries greater uncertainty due to ongoing global market disruptions, evolving tariff policies, and other macroeconomic risks. Planning and Building revenue is similarly sensitive to economic conditions, as it is closely linked to local development activity, building permit volume, and real estate market health.

Despite these risks, the Town’s strong reserves and sound financial practices provide a solid foundation to manage risk and maintain service levels in the year ahead.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 9 City Manager’s Budget Message
increase in Excess Educational Revenue Augmentation Fund (ERAF) revenue. The estimate is based on data from the County Assessor’s Office and analysis by the Town’s revenue consultant, HdL Companies.

License and Permits revenues, which is the second largest revenue category, are projected at $2.0 million for FY 2025-26. This represents an increase of 92.6% from final FY 2024-25 estimates and 22.0% over the FY 2024-25 adopted budget, largely driven by expected adjustments from the fee study and continued high service demand.

Use of Money and Property revenues—which include both investment income and rental income—is projected at $1.0 million for FY 2025-26, an approximate 33.7% decrease from final FY 2024-25 estimates and 9.0% under the FY 2024-25 adopted budget.

Investment income also continues to perform well due to elevated interest rates and the addition of a sweep account that captures earnings on idle cash balances. However, investment income is sensitive to monetary policy shifts. With the Federal Reserve signaling the possibility of up to 50 basis points in interest rate cuts later in 2025, the Town is closely monitoring its exposure, as lower rates could reduce investment returns. Broader economic indicators—such as renewed trade tensions, stock market volatility, and recessionary concerns—further underscore the need for caution. For FY 2025-26, the investment portfolio, with an average duration of approximately 2.45 years and a current yield exceeding 4.1%, is budgeted at a 3.0% interest rate. Short-term accounts, including LAIF and the Wells Fargo Stagecoach Sweep account, are both budgeted at 2.0%, acknowledging their overnight liquidity and heightened sensitivity to anticipated Federal Reserve rate cuts. This approach offers a realistic and cautious projection—recognizing the Town’s strong current earnings while accounting for the possibility of declining yields as rates adjust over time.

Other revenue categories—including franchise fees, intergovernmental subventions, and miscellaneous sources— are expected to remain stable. However, Planning and Building revenues continue to fluctuate, reflecting the timing of major development projects. Cost recovery in Planning remains low—currently around 30%—due to non-reimbursable, state-mandated activities such as Housing Element implementation and Builder’s Remedy applications. To better align revenue with service costs, the Town is proceeding with a comprehensive user fee update and cost allocation study, with a new Planning and Building Fee Schedule expected to be implemented in FY 2025-26.

10 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan City Manager’s Budget Message
General Fund Expenditures
General Fund expenditures–including allocations–are projected at $18.1 million in FY 2025-26, a 13.5% increase from final FY 2024-25 estimates and 0.0% under the FY 2024-25 adopted budget. Excluding allocations, General Fund expenditures are estimated at $13.7 million.

Personnel costs are increasing due to two staffing changes, as well as rising health and pension obligations. The budget includes a new full-time Management Analyst (shared between Finance and Community Development) and converts a contract Building Technician to a full-time role. No cost-of-living adjustments (COLAs) are budgeted; instead, a merit-based contingency is provided to fund any salary increases. The Building Technician conversion reduces reliance on contract staff, which results in an overall decrease in Contractual Services costs.

Public safety remains the largest contractual service cost, with increased costs driven by adjustments to the Santa Clara County Sheriff’s Office contract and continued funding for private security and Automated License Plate Readers (ALPRs). Professional services and operations budgets remain consistent with prior years.

General Fund Revenues
$8,153,742 $8,153,742 $8,531,557 $8,531,557 $8,991,000 $8,991,000 $9,483,540 $9,483,540 $575,010 $575,010 $599,106 $599,106 $650,120 $650,120 $610,750 $610,750 $391,129 $391,129 $665,597 $665,597 $652,848 $652,848 $691,500 $691,500 $1,366,066 $1,366,066 $1,837,123 $1,837,123 $1,044,918 $1,044,918 $2,012,774 $2,012,774 $344,281 $344,281 $1,108,231 $1,108,231 $1,552,750 $1,552,750 $1,030,000 $1,030,000 $38,439 $38,439 $49,422 $49,422 $103,683 $103,683 $46,001 $46,001 $1,035,404 $1,035,404 $1,099,638 $1,099,638 $733,152 $733,152 $1,241,925 $1,241,925 $82,691 $82,691 $69,012 $69,012 $16,745 $16,745 $18,000 $18,000 Property Taxes
Taxes Other Than Property
Franchise Fees
Licenses and Permits
Use of Money and Property
Intergovernmental Subventions
Charges for Services
Miscellaneous Revenues
Allocations In
10k
100k
1M
10M
100M
2022-23
Actual
2023-24
Actual
2024-25
Est. Actual
2025-26
Budget
Proposal
$2,962,480 $2,999,794 $3,693,945 $3,407,530

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 11 City Manager’s Budget Message
Department Highlights
Public Safety
Public safety remains a major cost driver for the Town. The Public Safety budget is $4.1 million, a 11.3% increase from the FY 2024-25 adopted budget. The increase is driven largely by contract cost increases and the continued need for supplemental services.

The Town is now in the second year of its public safety contract with the Santa Clara County Sheriff’s Office, which increased by 8%, from $2.5 million to $2.7 million, due to Consumer Price Index (CPI) adjustments and rising pension obligations.

Much of the increase in public safety spending began in FY 2021-22, when the Town expanded its law enforcement tools in response to a surge in residential burglaries. In April 2021, the Town added Automated License Plate Readers (ALPRs), to monitor the license plates of vehicles entering and exiting the Town. In April 2023, private security patrols were added as a deterrent and investigative aid. Additional measures included funding for overtime deputies and consultants to explore further crime prevention strategies. As a result, public safety expenditures have increased by over $1 million since FY 2021–22.

To manage rising expenses, the Town implemented several cost-saving measures:
> Overtime funding was reduced from $200,000 to $100,000 in FY 2025-26 based on actual usage trends. > In February 2025, the Council approved a reduction in private security patrols from four shifts to three, reducing costs by $50,000.
> In February 2025, the number of Automated License Plate Readers (ALPRs) was reduced from 40 to 31, reducing costs by $17,000.

Despite these reductions, key public safety investments will remain in place. The FY 2025-26 Budget includes $550,000 for private security services, $93,000 for ALPRs, $100,000 in overtime funding for deputies and FY 2025-26 General Fund Expenditures ($18.1M)
General Administration General Administration
$2,510,087, 14% $2,510,087, 14%
Finance & Administrative Services Finance & Administrative Services $1,636,028, 9% $1,636,028, 9%
Community Development Community Development
$4,817,269, 27% $4,817,269, 27%
Public W Public Works orks
$3,574,951, 20% $3,574,951, 20%
Public Safety Public Safety
$4,1 $4,113,524, 23% 13,524, 23%
Non-Departmental Non-Departmental
$13,240, 0% $13,240, 0%
Community Services Community Services
$1,452,365, 8% $1,452,365, 8%

12 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan City Manager’s Budget Message
investigators to provide additional coverage during holidays or as needed throughout the year, and $60,000 for a law enforcement consultant—recommended by the Sheriff’s Contract Ad Hoc Committee—to help evaluate future service model options.

In addition, the animal control services contract with Pets in Need is budgeted to increase from $150,000 to $157,000, reflecting cost escalations from the provider.

One cost area not yet reflected in the FY 2025-26 budget is the annual contract reconciliation performed by the Sheriff’s Office. This reconciliation covers overages and underages for detective work, call volumes, and services above or below the base contract and authorized overtime. The amount is not known until Q3 2025 and can range significantly—from a credit to several hundred thousand dollars in additional charges—depending on service levels provided.

Community Development
The Community Development budget for FY 2025-26 is $4.8 million, a 8.1% decrease from the FY 2024-25 adopted budget. The decrease is due to the completion of several Housing Element tasks. However, ongoing long-range planning and the processing of complex, state-mandated applications will continue to place pressure on department resources through the coming year. Most Housing Element-related costs are budgeted in the Capital Improvement Program (CIP), with some expenses reflected in the Operating Budget.

The FY 2025-26 Planning Division budget reflects continued demands related to Housing Element implementation and long-range planning, which have significantly impacted staff workload and resource needs. Although application volumes have declined due to new state-mandated streamlining laws, substantial staff and consultant time remains committed to housing element amendments, rezoning, and legal compliance efforts. Revenues are projected at $633,673, while expenditures are expected to decline by 7% compared to FY 2024-25, reflecting the completion of key Housing Element adoption milestones. Despite efforts to achieve a 90% cost recovery rate for current planning services, overall cost recovery remains low (approximately 30%) due to the predominance of non-fee-recoverable activities. The Town is implementing updated fee schedules from the ongoing Cost Allocation Plan and User Fee Study to improve alignment between revenues and service costs. However, General Fund support will continue to be necessary as the Town advances its long-range planning obligations and manages complex housing-related applications. Additionally, significant Housing Element-related costs—while budgeted under the Capital Improvement Program (CIP)—have affected the General Fund.

Code Enforcement expenditures remained steady in FY 2024-25 following an increase in contracted hours from 24 to 32 hours per week to address higher case volume. The FY 2025-26 budget continues funding at the expanded service level, based on the current hourly rate.

The FY 2025-26 Building Division budget reflects ongoing investment to support strong development activity and improved service delivery. While actual revenues in FY 2024-25 came in below projections due to delays in large project starts, overall permit volumes remain robust, and revenues are expected to rebound in FY 2025-26 as deferred activity proceeds. The budget includes targeted staffing changes, such as converting a contract Building Technician to a full-time role and adding a shared Management Analyst, reducing reliance on consultants. Continued investments in permitting technology and implementation of updated user fees from the ongoing User Fee Study will enhance efficiency, customer service, and long-term financial sustainability.

Public Works
The General Fund Public Works budget for FY 2025-26 is $3.6 million, a 0.7% increase from the FY 2024-25 adopted budget.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 13 City Manager’s Budget Message
The Engineering budget decreased by $371,514, or 27%, primarily due to a reduction in billable professional and contract services now being handled by in-house staff. The Storm Drain Operations budget increased by $62,613, or 12% due to additional contract services to support the Storm Drainage Fee Study. The Street Operations budget increased by $71,685, or 9% due to higher personnel costs from bringing inspection services in-house. The Pathway Operations budget increased by $261,331, or 32% due to higher personnel costs.

In the Internal Service Fund, the Corporation Yard budget increased by $43,606, or 24% largely due to increased personnel costs and the Vehicle Operations budget increased by $46,840, or 35%, also driven by higher personnel costs. In the Sewer Fund, the Sewer Operating budget increased by $417,959, or 7%, primarily due to increased treatment charges from the Palo Alto Treatment Plant and higher conveyance fees in Los Altos.

General Administration
The General Administration budget is made up of all the support departments which include City Council, City Manager, City Attorney, City Clerk, and Committees and Commissions.

The General Administration budget for FY 2025-26 is $2.5 million, a 8.8% increase from the FY 2024-25 adopted budget.

The FY 2025-26 City Manager’s budget reflects increased personnel costs due to a reallocation of the Deputy City Manager’s time from other departments to the City Manager program. The budget also includes a contract Emergency Services Manager to support emergency planning, training, and committee initiatives. To maintain flexibility for advancing Council priorities and addressing specialized needs, funding is included for consultant services on an as-needed basis.

The FY 2025-26 City Attorney’s budget remains largely consistent with the prior year. Legal costs related to Community Development and Public Works—such as Housing Element implementation, SB 9 compliance, and pathway projects—continue to be reflected in those departmental budgets. Many legal costs related to development applications are billable to applicants and cost-recoverable. The remaining budget covers anticipated litigation, settlements, and general legal services. A modest reduction was made to better align with projected actual expenditures.

Finance and Administrative Services
The Finance and Administrative Services budget includes: Finance and Administrative Services, Community Services Grants (Donations to Non- Profits), Insurance, and Town Center (overhead charges). In FY 2024-25, Finance and Administrative Services reached full staffing for the first time in several years, following a period of significant turnover. With key positions now filled, the department is well-positioned to deliver stable, efficient, and highquality Finance and Human Resources services.

The General Fund Finance and Administrative Services budget for FY 2025-26 is $1.6 million, a 13.1% increase from the FY 2024-25 adopted budget. The increase is due to continued investment in financial and HR systems, the transfer of the recruitment budget from the Town Center, and higher insurance costs. It also includes a new 0.5 FTE Management Analyst, shared with Community Development, to support building deposit tracking, fee studies, budget development, and HR functions—reducing consultant reliance and improving interdepartmental support.

Community Services
The Community Services budget includes: Recreation Administration, Recreation Programs, Special Events, Parks, and Westwind Community Barn. The Community Services budget for FY 2025-26 is $1.5 million, a 20.8% decrease

14 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan City Manager’s Budget Message
from the FY 2024-25 adopted budget. The decrease is due to a reduction in personnel costs as staffing is now a single Community Services Supervisor.

Staffing
The FY 2025-26 budget proposes a few staffing adjustments to meet operational needs. One Associate Engineer position is proposed to be reclassified to Project Manager to assist in managing engineers for land development reviews, encroachment permits, and CIPs. A contract Building Technician is proposed to be converted to a full-time role to provide consistent support for permitting and customer service. In addition, a new Management Analyst position is proposed, split between Finance and Community Development, to support building deposit tracking, budget development, and broader analytical needs across both departments.

Capital Improvement Plan
FY 2025–26 marks the second year of the Town’s two-year Capital Improvement Plan (CIP). Over the past year, the Town has made steady progress on priority infrastructure projects. In FY 2024–25, the Town funded and implemented a range of capital improvements, including roadway rehabilitation, storm drain upgrades, sewer system maintenance, and equipment replacement. Several long-range projects also advanced through key planning and design phases.

One of the most significant changes in this year’s CIP is the scaling back of the Civic Center Improvements project, which has been refocused on the renovation of the Parks and Recreation Building. This narrower scope reflects both fiscal constraints and evolving community needs, while still investing in long-term facility upgrades.

In addition to continuing core programs, the FY 2025–26 CIP introduces several new projects, including Road Safety and Traffic Calming, the Magdalena Avenue Pathway, and development of a Local Road Safety Plan—each of which supports community safety and mobility goals.

The Annual Road Rehabilitation Project remains the cornerstone of the CIP and is funded at $1.4 million in FY 2025–26. Supported by SB1, Gas Tax, and Measure B revenues, this project prioritizes pavement preservation based on the Metropolitan Transportation Commission’s Pavement Management Program (PMP), supplemented by staff field inspections and local conditions.

The Sewer Fund also remains adequately funded, with $0.9 million allocated in FY 2025–26 for capital improvements to maintain the Town’s collection and distribution system.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 15 City Manager’s Budget Message
FY 2025-26 Capital Projects by Category ($4.2M)
Infrastructure Infrastructure
$1,069,310, 26% $1,069,310, 26%
Pathways Pathways
$565,000, 14% $565,000, 14%
Road Rehabilitation Road Rehabilitation
$1,465,000, 35% $1,465,000, 35%
Sewer Sewer
$900,000, 22% $900,000, 22%
VVehicle and Equipment ehicle and Equipment
$100,000, 2% $100,000, 2%
WWestwind Community Barn estwind Community Barn
$50,000, 1% $50,000, 1%
Sewer Fund
The Sewer Fund is fully supported by sewer service charges to residential and non- residential customers and sewer connection fee assessments on new connections to the Town’s sewer system. The Town’s sewer service charge rates have annually increased since FY 2022-23 per the sewer rate study conducted in 2022, due to substantial increases to waste treatment costs from Palo Alto as the regional treatment facility requires significant capital improvements and upgrades to adhere to regulatory requirements. Additionally, the capital needs for the Town’s infrastructure have increased.

The Town has also recently been notified by Los Altos and Palo Alto that service charges for FY 2023-24 will be higher than originally budgeted due to ongoing capital improvements to the system. These additional charges will be captured in the year-end close process, with the ACFR containing the most up-to-date unrestricted net position for the Sewer Fund. These additional charges underscore the need to consider a new rate study in the near future to ensure rates are able to meet the cost of providing these services.

Long Term Debt
The Town has no long-term debt as of the year ending June 30, 2025. The Town does have a special assessment without Town commitment. Special assessments for West Loyola Sanitary Assessment Sewer district are established in various parts of the Town to provide improvements to properties located in those districts. Properties are assessed for the cost of the improvements. These assessments are payable solely by the property owners over the term of the debt issued to finance the improvements. The Town acts solely as the collecting and paying agent for the district’s debt, which is not included in the general debt of the Town. The bonds are not a general obligation of the Town. The Town is not legally obligated to pay these debts or be the purchaser of last resort of foreclosed properties in the special assessment district.

Pension and Other Post Employment Benefits (OPEB)
As of the most recent actuarial report from CalPERS, with a valuation date as of June 30, 2023, the Town’s Unfunded Actuarial Liability (UAL) is approximately $3.8 million. The required UAL contribution is approximately $0.3 million for FY 2025-26, which has been incorporated in the operating budget. The Town maintains three pension plans:
the Classic Miscellaneous group is 81.1% funded, the Second Tier plan is 88.2% funded, and the PEPRA tier is 88.9%

16 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan City Manager’s Budget Message
funded. While the unfunded pension liability is significant, the Town has set aside approximately $1.1 million in a Section 115 Pension Trust and another $2.1 million in a General Fund Pension Reserve. The Town expects to retain a consulting actuary to analyze the Town’s updated unfunded liability and provide options and considerations related to the existing funding that has been set aside for pensions. The Town’s Other Post Employment Benefits (OPEB) Trust is now underfunded by $59,461. The decrease is due to updated actuarial assumptions, unexpected plan experience (including higher retirements and new hires), and lower-than-expected investment returns.

Overhead and Internal Service Fund Allocation
The Town’s overhead cost allocation methodology was updated in FY 2025–26 by NBS to more accurately reflect the cost of administrative services. Overhead includes core functions such as the City Council, City Manager, City Attorney, City Clerk, Finance, Human Resources, and Town Center operations. Due to the Town’s small size, fixed administrative costs represent a larger share of the budget than in larger jurisdictions, yet they reflect the baseline staffing needed for effective governance.

The updated cost allocation plan ensures that overhead is fairly distributed across departments, improving transparency and supporting fee-based cost recovery in Planning, Building, Public Works, and Parks & Recreation.

Since FY 2018–19, administrative costs have ranged from 20% to 29% of the General Fund operating budget, and that range remains consistent in FY 2025–26.

Historically, the Town’s budget combined General Fund and Internal Service Fund operations, while the financial statements and ACFR reported them separately. This made year-over-year comparisons appear larger than they actually were, particularly in administrative budgets.

Beginning with the FY 2025–26 budget, this issue has been corrected: the General Fund and Internal Service Fund are now presented separately, aligning the budget with the ACFR and ensuring consistent, accurate comparisons.

A clarifying footnote has been added to the budget document to explain the change.

Reserves
As part of the FY 2025–26 budget process, the Town reviewed and updated its reserves to ensure alignment with adopted policy targets, actual funding needs, and best practices. The Operating Contingency Reserve was renamed the General Fund Stabilization Reserve to more accurately reflect its purpose and to align with Government Finance Officers Association (GFOA) terminology and recommendations. Adjustments were also made to reflect actual program needs and avoid duplicate pension reserves. These changes ensure consistency with the Town’s reserve policy and support long-term financial sustainability. A detailed summary of reserve levels, including projected year-end balances, is provided in the Financial Summary section.

Financial Summary
As of July 1, 2025, the Town’s General Fund reserves are projected at $15.0 million, increasing slightly to $15.2 million by June 30, 2026. The Unassigned Fund Balance is expected to grow from $2.1 million to $2.6 million, reflecting strong revenue performance and disciplined expenditure management.

The General Fund Stabilization Reserve will increase to $3.1 million, meeting the Town’s policy target of three months of operating costs and aligning with GFOA best practices. The Capital Projects Reserve remains at $3.4 million, preserving prior appropriations to fund approved but incomplete capital projects. The Facilities Replacement Reserve decreases to $3.0 million following the scaled-back Civic Center Improvements project, now focused on Parks and

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 17 City Manager’s Budget Message
Recreation Building renovations. The Pension Contribution Reserve will drop to $1.5 million, as the balance now reflects the assets already set aside in the Section 115 Trust. This avoids counting the same funds twice. Other reserves include $1.25 million for disaster contingency and $509,000 for vehicle and equipment replacement.

Looking ahead, the Town’s long-term fiscal outlook remains stable but will require close monitoring. Cost pressures from public safety, pension obligations, and capital needs may require future adjustments. Maintaining structural balance will likely involve reassessing baseline expenditures and exploring new revenue options in the years ahead.

The Town continues to maintain no long-term debt and has no plans to issue any at this time, reinforcing its strong financial position.

Town-Wide Budget at a Glance
This budget document is purposefully organized to flow from summary to detailed levels of information. It is organized by several key sections, Town-Wide fund balance projections, Town-wide revenue and expenditures summaries, and the Sewer Fund. In the following budget sections, you can locate the budget details that describe where the Town gets its money from and how it is utilized by the Town departments. The budget process involves all the departments in its creation with their level of control and responsibility.

Special Acknowledgements
I am proud to announce that the Town of Los Altos Hills has received the GFOA Award for Excellence in the preparation of our FY 2024-25 Budget. This prestigious recognition reflects our ongoing commitment to fiscal responsibility, transparency, and effective financial management. I extend my heartfelt gratitude to our dedicated staff, FIC and Council whose hard work and collaboration made this achievement possible. As we move forward with the FY 2025-26 budget, we remain steadfast in our dedication to maintaining the highest standards of financial stewardship for the benefit of our Town.

A special thanks to the Finance and Administrative Services department and the Management Team for the success of the FY 2025-26 budget. Without the support of the entire Management Team, providing good stewardship of the budget isn’t possible. Finally, a special acknowledgement to the City Council for providing clear policy direction and look forward to the Council’s guidance and leadership as we work to adopt a budget that funds services and projects for our community while also balancing fiscal sustainability.

Respectfully Submitted,
Peter Pirnejad, City Manager

18 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan City Manager’s Budget Message

PRESENTED TO
Town of Los Altos Hills
California
For the Biennium Beginning
July 01, 2024
Executive Director

GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 19 City Manager’s Budget Message
September 30, 2024
Thomas Leung
Finance Director
Town of Los Altos Hills, California
Dear Thomas:

A panel of independent reviewers have completed their examination of your Biennial budget document for the period beginning July 2024. We are pleased to inform you that your budget document has been awarded the Distinguished Budget Presentation Award from Government Finance Officers Association (GFOA). This award is the highest form of recognition in governmental budgeting. Its attainment represents a significant achievement by your organization.

Your Distinguished Budget Presentation Award is valid for two years. To continue your participation in the program, it will be necessary to submit your next budget document to GFOA within 90 days of the proposed budget's submission to the legislature or within 90 days of the budget's final adoption.

Your electronic award package contains the following:
 Scores and Comments. Each entity submitting a budget to the program is provided with reviewers’ scores for each of the categories on which the budget document was judged along with reviewers’ confidential comments and suggestions for possible improvements to the budget document. We urge you to carefully consider these suggestions as you prepare your next budget.  Budget Award. A camera-ready reproduction of the Award is included for inclusion in your next budget. If you reproduce the camera-ready image in your next budget, it should be accompanied by a statement indicating continued compliance with program criteria. Please refer to the instructions for reproducing your Award in your next budget (also included in your award package).  Certificate of Recognition. When a Distinguished Budget Presentation Award is granted to an entity, a Certificate of Recognition for Budget Presentation is also presented to the individual(s) or department designated as being primarily responsible for its having achieved the award.  Sample press release. Attaining this Award is a significant accomplishment. The sample press release may be used to give appropriate publicity to this notable achievement.

In addition, award recipients will receive via mail either a plaque (if the government is a first-time recipient or has received the Award fifteen times since it received its last plaque) or a brass medallion to affix to the plaque.

We appreciate your participation in this program, and we sincerely hope that your example will encourage others in their efforts to achieve and maintain excellence in governmental budgeting. The most current list of award recipients can be found on GFOA's website at www.gfoa.org. If we can be of further assistance, please contact the Awards Programs staff at (312) 977-9700.

Sincerely,
Michele Mark Levine
Director, Technical Services Center

20 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan City Manager’s Budget Message
Finance Department
Town of Los Altos Hills, California
9/30/2024
The Government Finance Officers Association
of the United States and Canada
The Certificate of Recognition for Budget Preparation is presented by the Government Finance Officers Association to those individuals who have been instrumental in their government unit achieving a Distinguished Budget Presentation Award. The Distinguished Budget Presentation Award, which is the highest award in governmental budgeting, is presented to those government units whose budgets are judged to adhere to program standards.
presents this
CERTIFICATE OF RECOGNITION FOR BUDGET PREPARATION to
Date:

Executive Director

(This Page Intentionally Left Blank)

Budget Process

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 23 Budget Process
Budget Process
Budget Process Overview
Beginning in FY 2024–25, the Town of Los Altos Hills transitioned to a two-year budget cycle. Previously, the Town adopted an annual Operating Budget alongside a five-year Capital Improvement Plan. The new biennial budget includes detailed revenue and expenditure appropriations for each fiscal year, covering the period from July 1 through June 30. Budget documents are presented in a summary format and prepared on the same accounting basis as the Town’s financial statements, in accordance with Generally Accepted Accounting Principles (GAAP).

Budget Purpose
The Operating Budget and Capital Improvement Plan (CIP) serve not only as the Town’s financial blueprint but also as key policy instruments, communication tools, and operational guides. These documents are developed with a strong emphasis on long-term financial stewardship, sustainability, effective service delivery, and sound program management. A core objective is to clearly connect the services and projects the Town plans to undertake with the resources allocated to achieve them. The budget format reinforces this connection by explicitly identifying each program’s purpose, key initiatives, and work plan goals in relation to corresponding revenue and expenditure appropriations.

Basis of Budgeting and Accounting
The Budget is prepared in accordance with Generally Accepted Accounting Principles. The budget for governmental funds has been prepared on a modified accrual basis. The modified accrual method recognizes expenditures when the related Fund liability is incurred. Revenues are recognized when they become both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current accounting period or soon enough thereafter to be used to pay liabilities of the current period. The annual budget contains the revenues, expenditure appropriations and other financial information pertaining to all Town operating and capital budgets. This is consistent with the Town’s basis of accounting as reported in its Annual Comprehensive Financial Report (ACFR).

Government budgets and governmental accounting use a mix of accounting methods. A hybrid cash and accrual accounting system known as a Modified Accrual Basis of Accounting recognizes revenues when measurable and available.

The Town considers all revenues reported in the governmental funds to be available if the revenues are collected within 45 days after the fiscal year.

Revenues are recognized in the period earned/collected. Expenditures are recorded when the liability is incurred.

General long-term debt is recognized as expenditures to the extent they have matured.

Governmental Funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property and sales tax, interest certain state and federal grants, and charges for services are accrued when their receipt occurs with sixty (60) days after the end of the accounting period to be both measurable and available. However, debt service expenditures, as well as expenditures related to claims and judgments are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of longterm debt and capital leases are reported as other financing sources.

24 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Budget Process
Proprietary Fund Types include the Enterprise and Internal Service Funds, are used to account for the Town’s business-type activities. Proprietary Funds are reported using the economic resources measurement focus and full accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Fiduciary Funds are custodial in nature, assets equal liabilities, and they do not involve the measurement of the results of operations.

Key Difference Between Basis of Budgeting and Basis of Accounting There are two main differences between the basis of budgeting and the basis of accounting:

1. Often budgets reflect the Town’s goals and intentions, while accounting reflects actual events. For example, the Town may intend to fill a vacant position in a future fiscal year and contract with a consultant in the current fiscal year. Under such circumstances, the Town would budget for the vacant position as if it will be filled in the current fiscal year, but it will record the consulting costs as contractual or professional services when the bill comes.

2. Within the same accounting Fund, allocations in and allocations out must be offset in accounting method. In the Town’s Operating Budgets, they are presented as whole. Budgeting rules allow this flexibility - to offset or to present separately. Budgeting “best practices” allows the agency to show both if the methodology is consistent, and the budget document indicates area of duplication.

Summary of Budget Development
The Town’s budget is developed through a collaborative, team-based process involving departments and their leadership. While the City Manager and the Administrative Services Director/Finance Director provide overall guidance throughout budget development, individual program budgets and work plans are shaped with the direct involvement and subject-matter expertise of department directors and program managers. This hands-on approach fosters strategic planning, ensures alignment with organizational goals, and promotes a shared understanding among management and staff of each program’s objectives and intended outcomes for the upcoming fiscal year.

Development Process
The development of the Operating Budget and Capital Improvement Plan (CIP) begins each January, as the City Manager collaborates with the City Council to establish and refine strategic goals and policy directives for the upcoming budget cycle. Concurrently, the CIP is reviewed to assess available funding, evaluate project priorities, and update work plans accordingly. While the CIP is a distinct planning effort, its projects often have operational impacts and are therefore integrated into the Operating and Capital Summary Budget through their associated appropriations and service level implications.

Through multiple rounds of internal review and refinement, departmental work plans for both operations and capital projects are evaluated, revised, and consolidated. Staff then prepares the proposed program and capital budgets, along with finalized financial summaries. These materials are compiled into a proposed budget document for City Manager and City Council review. To support public transparency, a summary-level presentation is also prepared for the public hearing to highlight key budgetary impacts and priorities for the upcoming fiscal period.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 25 Budget Process
Budget Adoption
The development of the Town’s operating and capital budgets is a continuous, year-round process, with formal compilation and analysis occurring over approximately three months. It begins with a review of mid-year actual revenues and expenditures, presented to the City Council through the Mid-Year Financial Update. This mid-year information is carried forward into the new budget development cycle.

In February, the City Manager and Finance and Administrative Services Department issue budget development guidelines to departments, outlining the economic outlook and setting parameters for departmental budget preparation. The budget cycle officially begins with the preparation of budget instructions, including policy directives and a detailed budget calendar.

Department heads submit their budget projections to the Finance and Administrative Services Department, which then compiles a draft proposed budget for the City Manager’s review. Following this review, the City Manager presents the proposed operating and capital budgets to the City Council and the Finance and Investment Committee.

Public joint study sessions with the City Council and Finance and Investment Committee are held in May and/or June to review the proposed budget. The final Town operating and capital budgets must be adopted no later than June 30.

Two-Year Budget Cycle
The Town operates on a two-year budget cycle following the same sequence annually. In the second year of the two-year cycle, the review process is streamlined for budget elements that are more predictable and stable. The two-year budgeting process is designed to:
> Provide a longer planning horizon for operational needs > Free up staff capacity during the second year to focus on deeper analysis of the Capital Improvement Program (CIP) and development of the capital budget
Budget Monitoring and Public Input
Throughout the fiscal year, the Finance and Administrative Services Department:
> Monitors economic conditions that may impact revenues > Coordinates with departments to identify emerging needs and changing demands > Proposes budget adjustments to the City Council as needed during the mid-year review Public input is incorporated through the Town’s 16 standing committees and their staff liaisons. These contributions are considered during budget development and throughout the year as separate Council action items.

Final Budget Adoption
After incorporating City Council-directed revisions, the final budget documents are resubmitted for adoption at a publicly noticed hearing, typically in late June before the start of the new fiscal year. Adoption resolutions for the Capital Improvement Program (CIP), operating budget, and Appropriation Limit (also known as the Gann Limit) follow thereafter.

26 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Budget Process
Budgetary Control
The City Council is responsible for appropriating the funds necessary to support the Town’s operating and capital activities. Budgetary control is exercised at the department level to ensure adherence to approved spending plans.

The City Manager is authorized to approve transfers of appropriations between programs, activities, or line items— whether within a department or across departments—provided that the total appropriation within a given Fund is not increased. Any increase in a Fund’s total appropriation requires formal approval by the City Council.

Departments actively monitor their budgets using the Town’s financial system, supported by monthly revenue and expenditure reports. If additional appropriations are needed after budget adoption, departments may submit requests for Council approval. Such adjustments are formally adopted by resolution and are summarized in the Mid-Year Financial Update.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 27 Budget Process
Budget Calendar
Beginning in FY 2024–25, the Town of Los Altos Hills transitioned to a two-year budget cycle. This is expected to provide a longer view of operational revenues and expenses, as well as a mid-cycle labor savings. This labor savings will allow for a more comprehensive review of the Town’s Capital Plan, and the budgets for the capital projects contained therein.

JANUARY
> The Finance and Administrative Services Department prepares Mid-Year Budget Report and CIP update for Council review.
> The Finance and Administrative Services Department builds preliminary budget information and budget assumptions.
> The Finance and Administrative Services Department prepares operating budget worksheets for updates, including departmental/program narratives, staffing and financial worksheets.

FEBRUARY
> The Finance and Administrative Services Department prepares budget worksheets for departments. > Departments prepare personnel allocations.
> Project Managers attend Committee meetings to receive feedback on the proposed CIP. > Project Managers prepare funding, scope of work, and cost estimates for new CIP proposed projects.

MARCH
> Departments turn in proposed budget worksheets.
> The Finance and Administrative Services Department prepares estimates for revenues and expenditures. > Departments turn in new CIP proposed projects.
> The City Manager begins to review new proposed CIP projects.

APRIL
> Departments finalize program narratives.
> The Finance and Administrative Services Department compiles final program narratives, financial and supplemental schedules, and financial budget summaries for the City Manager’s review and discussion. > Project Managers finalize new proposed CIP projects and existing projects.

MAY
> Final budget briefing with the City Manager.
> Review Proposed Budget with the Finance and Investment Committee. > Joint meeting with the City Council and the Finance and Investment Committee. > The Finance and Administrative Services Department incorporates Council-directed changes into proposed budgets and prepares final documents for Public Hearing presentation.

JUNE
> City Council revisions are incorporated into budget documents. > City Council adoption of Operating Budget and Capital Budget.

28 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Budget Process
> City Council adoption of the Town’s Appropriation Limit.

JULY – SEPTEMBER
> The Finance and Administrative Services Department finalizes recognition of and recordation of the prior fiscal year revenues and expenditures in preparation for the production of the Town’s Annual Financial Statements as of the twelve months ending June 30.
> Determine operating budget carryforwards (encumbrances). > Finalize capital project expenditures and roll-over amounts. > Finalize detailed budgets and distribute them to Town departments. > Prepare final financial and supplemental schedules, charts, and reference materials for budget documents. > Finalize the Adopted Operating & Capital Summary Budget documents. > Post Adopted Operating and Capital Budget document on website. > Submit for Budget Award.

Town
Information

30 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Town Infor
mation
Town Profile
Town History
The Town of Los Altos Hills encompasses nine square miles, making it one of the smallest incorporated towns in Santa Clara County. There is an additional 5.2 square miles of unincorporated land adjacent to the Town’s boundaries designated within the Town’s “sphere of influence” and may be subject to the Town’s guidelines or annexation.

Incorporated on January 27, 1956, Los Altos Hills had an original population of 2,500 and has grown to approximately 8,500 residents. Many are drawn to this Town because of the area’s beauty—rolling hills, picturesque valleys, and mild climate, much of the same reasons which drew the first inhabitants. Another significant feature of the Town is the absence of commercial activity, which the founding fathers foresaw, and present residents have long upheld as necessary to preserve the kind of lifestyle they desire by choosing to live within the Town limits. However, permitted uses such as schools, religious, and recreational clubs. Combined with the natural beauty, physical assets, and the residents’ determination to maintain their rural lifestyles, the Town remains one of the most beautiful, unspoiled, and desirable residential communities in Northern California.

One of the unique features of the Town of Los Altos Hills, which the Town is justifiably proud of, is its Pathway System. This system of pathways comprises about 86 miles of beautiful trails and off‐road paths that meander around and connects most of the community and the Town’s sidewalk located in areas around the Town. With the cooperation of the residents, through easements and donations, this unique system is designed to allow users to appreciate the Town’s natural beauty at their leisure, whether by walking, running, or even on horseback, and get acquainted with it, other residents.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 31 Town Infor
mation
Personal Income and Unemployment
Per Capita Personal Income Unemployment Rate
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
0 25,000
50,000
75,000
100,000
125,000
150,000
175,000
200,000
225,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%
Education Level Attained for Population 25 and Over
% of Pop 25+ with High School Degree % of Pop 25+ with Bachelor’s degree 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

0.0%

20.0%

40.0%

60.0%

80.0%
100.0%
120.0%
Town Demographics and Economic Statistics
Year
Town
Population
Personal
Income (in
thousands)
Per Capita
Personal
Income
Unemployment
Rate Median Age
% of Pop 25+
with High
School
Degree
% of Pop 25+
with Bachelor’s
degree
2013 8,354 843,253 100,940 2.6% 48.9 98.1% 84.2%
2014 8,330 930,261 111,676 3.4% 49.3 97.9% 84.7%
2015 8,658 1,015,063 117,239 2.7% 50.3 98.1% 82.8%
2016 8,634 1,028,190 119,086 2.4% 51.1 98.0% 83.7%
2017 8,580 1,214,396 141,538 2.2% 51.4 97.1% 83.5%
2018 8,559 1,211,424 141,538 2.6% 51.4 97.1% 83.5%
2019 8,413 1,234,482 146,735 14.9% 52.3 97.3% 84.3%
2020 8,390 1,302,757 155,274 4.2% 51.1 97.3% 85.3%
2021 8,400 1,299,447 154,696 3.4% 52.2 98.5% 87.6%
2022 8,414 1,437,120 170,801 2.8% 53.5 99.1% 86.3%
2023 8,477 1,473,616 173,837 3.5% 53.5 99.2% 85.6%
Sources: Population - California State Department of Finance; Unemployment Data - California Employment Development Department; Income, Age, and Education
Data – U.S. Census Bureau

32 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Town Information
Population
Year Los Altos Hills Santa Clara County California
2013 8,354 1,871,000 37,684,000
2014 8,330 1,867,000 38,054,000
2015 8,658 1,888,000 38,441,000
2016 8,634 1,902,000 39,071,000
2017 8,580 1,932,510 39,337,785
2018 8,559 1,932,340 39,437,463
2019 8,413 1,927,850 39,437,610
2020 8,390 1,936,259 35,538,223
2021 8,400 1,907,693 39,303,157
2022 8,414 1,894,783 39,185,605
2023 8,477 1,902,799 39,061,058
2024 8,476 1,903,198 39,128,162

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 33 Town Infor
mation
2025 City Council
Mayor Kavita Tankha
Term of Office: November 2026
Vice Mayor Rajiv Bhateja
Term of Office: November 2029
Councilmember Linda G. Swan
Term of Office: November 2029
Councilmember Stanley Q. Mok
Term of Office: November 2029
Councilmember George K. Tyson
Term of Office: November 2026

34 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Town Infor
mation
Residents of Los Altos Hills
Planning Commission
City Council Volunteer Advisory
Committees (13)
City Attorney
Contract
Mayor and
City Council
City Manager
Community
Development
Director
City Clerk
Administrative
Services /
Finance Director
Assistant
Community
Development
Director
Admin. Clerk/
Technician
Building
Technician/
Inspector (2)
Administrative
Clerk/Technician
Accounting
Technician Senior Planner
Management
Analyst
Assistant
Planner
Public Safety
Contract
SCC Office of
the Sheriff
Emergency
Services
Manager
Contract
Public Works
Director
& City
Engineer
Project
Manager
Assistant
Engineer (2)
Maintenance
Worker I
Maintenance
Superintendent
Maintenance
Worker II
Maintenance
Worker III (2)
Utility
Engineering
Manager
Public Works
Inspector
IT Services
Contract
Senior
Accountant
(2)
Community
Services
Supervisor
Deputy City
Manager
Management
Analyst (0.5)
Management
Analyst (0.5)

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 35 Town Infor
mation
Town Information
Standing Committees, Commission, and Volunteer Appointments The Town of Los Altos Hills offers residents many opportunities to contribute to its direction and vision and to making the Town a place that is the best it can be for all who call it home. Residents are invited to weigh in on major initiatives and suggest beneficial improvements for the Town. Residents can address the City Council at all meetings, and volunteers serve on a variety of committees. The meetings of the standing committees follow California’s Open Meeting Laws (also known as the Ralph M. Brown Act). Roster as of May 2025 appointments.

Emergency Preparedness and Response Committee
City Council Liaison: Rajiv Bhateja

MEMBERS TERM TERM EXPIRATION
Amita Sachdeva (Chair) 1st June 2026
Phillip M. Harter (Vice Chair) 1st March 2027
Dave Stewart 1st June 2026
Sam Wood 1st June 2026
Jamshid “Jim” Basiji 1st June 2026
Terry Kearney 1st August 2027
Rabindra “Rob” Singh 1st February 2027
BenGikis 1st June 2026
Vacant

ASSOCIATE MEMBERS
Neil Katin Bill Lattin Victoria Bebee
Andrew Kirk David Gilmour
Environmental Design and Protection
City Council Liaison: Kavita Tankha

MEMBERS TERM TERM EXPIRATION
Grace P. Tsang (Chair) 1st June 2026
Peter Brown (Vice-Chair) 2nd July 2025
Anne Hsiao (Secretary) 1st May 2028
Carol Gottlieb 4th September 2028
Elizabeth Loinaz 1st August 2025
Vijay Chawla 2nd August 2026
Ivy Mei 1st January 2029
Vacant

ASSOCIATE MEMBERS
Kjell Karlsson Hajime Murakami

36 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Town Infor
mation
Environmental Initiatives
City Council Liaison: George Tyson

MEMBERS TERM TERM EXPIRATION
Anand Ranganathan (Chair) 1st October 2028
Mike Salameh (Vice Chair) 1st June 2026
Steve Schmdit (Secretary) 2nd May 2028
Vrinda Bhandarkar 2nd October 2028
Aileen Lee 2nd May 2025
George Lee 1st February 2027
Johann George 1st May 2027
April Anair 3rd October 2028
Vacant
Vacant
Vacant

ASSOCIATE MEMBERS
Kunjan Shah Kit Gordon Raj Reddy
Jay Shideler Serena Giori
Finance and Investment
City Council Liaison: Kavita Tankha & Rajiv Bhateja

MEMBERS TERM TERM EXPIRATION
Allan Epstein (Chair) 4th October 2028
Kjell Karlsson (Vice Chair) 4th February 2029
Sean McGraw 1st November 2027
Michele Raffin 1st May 2027
Jeanne Seeley 1st May 2028
Dominique Grau 1st April 2029
Vacant
Vacant
Vacant

ASSOCIATE MEMBERS
Jim Lai Frank Lloyd Roddy Sloss (Secretay)
History
City Council Liaison: Linda Swan

MEMBERS TERM TERM EXPIRATION
Duffy Price 1st January 2027
Sylvia Jensen (Vice-Chair) 2nd March 2026
Carol Gottlieb (Chair) 4th May 2028
Sally Wood (Secretary) 2nd July 2025
Jitze Couperus 3rd March 2028
Patty Woolsey 1st September 2027
Bernardo Ferrari 1st August 2026
Vacant
Vacant

ASSOCIATE MEMBERS
Joe Heinrich Deanna Tryon Barry Smith

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 37 Town Infor
mation
LA-LAH Joint Community Volunteer Service Awards
City Council Liaison: Stan Mok/Neysa Fligor

MEMBERS TERM TERM EXPIRATION
Ginny Lear (Chair) 1st September 2027
Lindsay Carpenter (Secretary) 1st September 2027
Sumita Chandra 1st September 2027
Archanna Appanna 1st September 2029
Charles (Chuck) Lindauer 1st September 2029
Sandy Mingia 2nd March 2027
Kelly Davis 1st January 2027
Ben Gikis 1st July 2028
Donald Mattson 2nd March 2027
Vacant LAH
LA-LAH Library Commission
City Council Liaison: Linda Swan/Larry Lang

MEMBERS TERM TERM EXPIRATION
Pierre Bedard (Chair) 1st September 2025
Michelle Morris (Vice Chair) 1st September 2027
Carolle Carter 1st September 2025
Vacant Los Altos
Vacant Los Altos
Christine Fawcett 1st January 2027
Vacant LAH
LA-LAH Senior Commission
City Council Liaison: George Tyson/Sally Meadows

MEMBERS TERM TERM EXPIRATION
Jayne Cohen (Chair) 2nd September 2028
Kris Olson (Vice Chair) 1st September 2027
Dolores Gallagher Thompson 1st September 2028
Nomi Trapnell 1st September 2028
William Buchholz 2nd September 2025
Jamshid “Jim” Basiji 3rd August 2027
Sharvari Dixit 2nd September 2027

ASSOCIATE MEMBERS
Ben Gikis

38 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Town Infor
mation
Open Space
City Council Liaison: Stan Mok

MEMBERS TERM TERM EXPIRATION
Anita Baldwin (Chair) 1st February 2026
Peter Brown 2nd March 2026
Viggy Mokkarala 1st February 2026
Richard Contreras 3rd March 2029
Sarah He (Vice Chair) 1st March 2028
Eric Bredo 1st March 2029
Vacant
Vacant
Vacant

ASSOCIATE MEMBERS
Sharen Schoendorf George Clifford Hayley Louth Ditzler
Karen Lemes Nancy Couperus Jean Struthers
Kit Gordon
Parks, Recreation and Community Events
City Council Liaison: Stan Mok

MEMBERS TERM TERM EXPIRATION
Jasmeen Pombra (Chair) 1st January 2029
Boxia Schmidt (Vice Chair) 2nd January 2029
Jennifer Lauren Kan Bardsley 1st January 2029
Yibin Tang 2nd January 2029
Weiwen Li 1st January 2029
Mukta Sharangpani 1st January 2029
April Anair 2nd January 2029
Lewis “Lew” Jamison 1st January 2029
Lana Einschlag 2nd January 2029
Vacant

ASSOCIATE MEMBERS
Rebecca Hickman Valerie Metcalfe Kjell Karlsson
Helene Karlsson Jim Basiji Mehda Rishi
Nena Price Barbara Cannon Neal Rayborn
Craig Murray

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 39 Town Infor
mation
Pathways
City Council Liaison: Linda Swan

MEMBERS TERM TERM EXPIRATION
Richard Partridge (Chair) 2nd February 2027
Mike Orlando 1st July 2028
Marc Gurwith 1st October 2028
Michael Henshaw 1st October 2028
Nick Erndt 1st November 2028
Rajesh Shakkarwar 1st June 2026
Vacant
Vacant
Vacant

ASSOCIATE MEMBERS
Val Metcalfe
Planning Commission
Staff Liaison: Jay Bradford

MEMBERS TERM TERM EXPIRATION
Alisa Bredo 1st June 2026
Rajiv Patel (Chair) 3rd June 2026
Birgitta Indaco (Vice Chair) 2nd June 2028
Jim Waschura 2nd June 2028
Jitze Couperus 4th June 2028
Public Art
City Council Liaison: Stan Mok, COMMITTEE ON HIATUS

MEMBERS TERM TERM EXPIRATION
Diane Brauch (Secretary) 2nd November 2025
David Milgram 2nd August 2025
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant

ASSOCIATE MEMBERS

40 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Town Infor
mation
Technology Commission
City Council Liaison: Rajiv Bhateja

MEMBERS TERM TERM EXPIRATION
Lew Jamison (Chair) 1st October 2027
Ameesh Divatia (Vice Chair) 1st February 2026
Annie Ju (Secretary) 1st February 2026
George Lee 1st February 2026
John Swan 1st January 2027
Sam Wood 1st January 2029
Vacant

ASSOCIATE MEMBERS
Andrea Bibl
Youth Commission
Staff Liaison: Emina Mahic
Commission members are minors; therefore, their names are not publicly listed to protect their privacy.

Financial and
Personnel
Allocation
Summaries

42 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
City Council Priorities Budget Highlights
Priority Area General Fund - Operating
Estimated Amount
2025-26
Maintain Quality of Life and
Community Character Community Building through Town-wide Events and Activities $ 150,000 Housing Element Programs $ 500,000
Housing Element Amendment $ 100,000
Water Conservation (WELO)
Our Town Publication
Promote Public Safety Emergency Preparedness
Complete Safety Element $ 50,000
Fire Hazard Severity Zone Update $ 10,000
Emrgency Communication Items from EPRC (Sound Study,
ALERT SCC) $ 130,000
HIZ (Home Ignition Zone)
Increase Effective Service Delivery &
Governance TRAKiT & eTRAKiT Upgrades $ 130,000
Land Use Element Updates $ 25,000
Impact Fee Assessment $ 20,000
Heat Pump Rebates $ 10,000
Electrification Assessments $ 10,000
Reach Codes 2025
Leaf Blower Regulation Implementation
Deposit/Permit Tracking Report
Permit Fee Audit Study
Cost Service Study
New Building Permit Fee Schedule $ 20,000
Green House Gas Inventory $ 17,000
FY 2025-26 Annual Financial Report $ 50,000
Maximize functions of EPR system and change to online
payment $ 20,000
Explore an Agenda Management System $ 20,000
Continue Employee Enhancement & Retention
Program + Onboarding new employees
Internal Purchasing Policy
Town Survey $ 30,000
Expired Permit Management
Code Enforcement Program Evaluation
Upgrade the Town’s Website $ 20,000
Protect and Maintain Infrastructure Summerhill Avenue Pathway (Phase 2 & 3) $ 100,000 - $150,000 Pathway Fee Nexus Study
Middle Fork to Maple Court Path $ 50,000 - $300,000
Work with the Pathways Committee to reprioritize the
order of pathways to be worked on throughout the year $ 300,000 - $900,000 Subtotal of General Fund (Estimated) $ 1,902,000 - $2,802,000

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 43 Financial and Personnel Allocation Summaries
City Council Priorities Budget Highlights (Continued)
Priority Area Capital Projects
Estimated Amount
2025-26
Infrastructure BROADBAND INFRASTRUCTURE $ -
BYRNE PRESERVE RESTORATION $ 101,310
CABLE SERVICE COST SHARING PROGRAM $ 50,000
CORPORATION YARD IMPROVEMENTS $ -
CORPORATION YARD LOCKER ROOM $ -

EL MONTE FIRE STATION UNDERGROUNDING PROJECT (RULE
20A) $ -
HERITAGE HOUSE UPGRADE $ -
HOUSING ELEMENT $ 53,000
MISCELLANEOUS TECHNOLOGY $ 80,000
PARKS AND RECREATION CENTER RENOVATION (NEW) $ 200,000

PURISSIMA PARK IMPROVEMENT PROGRAM (FIELD & FACILITY
IMPROVEMENTS) $ 30,000
ROAD SAFETY AND TRAFFIC CALMING $ 60,000
SECURITY CAMERA UPGRADE $ 100,000
STREET SIGN REPLACEMENT $ 25,000
TOWN FACILITIES ENERGY EFFICIENCY (NEW) $ 150,000
TRAFFIC SIGNAL IMPROVEMENTS $ 20,000
WATER WELL AT PURISSIMA PARK $ 200,000
Pathways MAGDALENA AVENUE PATHWAY (NEW) $ 315,000
MAPLE LEAF - MIDDLE FORK LANE PATHWAY (NEW) $ 100,000
MISCELLANEOUS PATHWAYS $ 50,000
SUMMERHILL PATHWAY $ 100,000
Road Rehabilitation ANNUAL ROAD REHABILITATION PROGRAM $ 1,375,000 LOCAL ROAD SAFETY PLAN (NEW) $ 80,000

MEASURE B BIKE/PEDESTRIAN EDUCATION &
ENCOURAGEMENT PROGRAM $ 10,000
Sewer ANNUAL SANITARY SEWER REPLACEMENT AND REHAB $ 900,000 Storm Drain MATADERO CREEK EROSION $ -
STORM DRAIN IMPROVEMENTS $ -
Vehicle and Equipment VEHICLE AND EQUIPMENT REPLACEMENT (NEW) $ 100,000 Westwind Community Barn WESTWIND COMMUNITY BARN IMPROVEMENTS $ 50,000 Subtotal of Capital Projects (Estimated) $ 4,149,310

44 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Funds Overview
Town of Los Altos Hills
Budgetary Funds
Operations
Funds
Enterprise
Funds
Special Revenue
Funds
Capital
Funds
011 General
Fund
048 Sewer
Fund CIP
016 Parks & Rec
In-lieu Fund
041 General
CIP Fund
051 Sewer
Fund
019 American Rescue
PLan Act Fund
042 Pathways
CIP
021 COPS
Fund
043 Westwind
Barn CIP
071 Special
Donations
045 Drainage
CIP
046 Street
CIP
061 General Service
Fund (Internal Service
Fund)

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 45 Financial and Personnel Allocation Summaries
Fund Description
Fund Fund Description
011 General Fund is the primary operating fund of the Town and is used to account for most day‐to‐day activities.

Revenue sources include (but are not limited to) property tax, current fees for services, and business registration. 061 General Service Fund provides centralized support to all Town departments by accounting for the shared costs of Town Center operations, Corporation Yard operations, and vehicle and equipment operations. 016 Parks & Recreation in‐lieu Fund is used to account for development revenues from parks and recreation in‐lieu fees which are designated for park maintenance, improvement, construction, and acquisition. 019 American Rescue Plan Act (ARPA) Funds are Federal funds that are used specifically for COVID‐19 eligible uses. All funds must be obligated by 2024 and expensed by 2026.
021 Police Grants are used to account for grant activities and services paid for and reimbursed by grant funding. This fund includes grants from the following funding source; Supplemental Law Enforcement Services Account (SLESA) – Under the SLESA program (commonly referred to as the Citizens Option for Public Safety, or COPS grant), cities and counties receive state funds to augment public safety expenditures.

The General Fund supports the Emergency Preparedness contract and the Automatic License Plate Readers. 041 General CIP Fund is used to account for general capital projects including building construction, technology purchases and other infrastructure needs. The main source of revenue comes from the General Fund. 042 Pathway Fund is used to account for all funds received in the Pathway Fund shall be used exclusively for the construction of the Town’s pathway system.
043 Westwind Community Barn Fund is used to account for capital projects at Westwind Community Barn financed by Verizon Cell.
045 Storm Drain Fund are used to account for revenues from drainage fees, which are designated for storm drain maintenance, improvement, and construction.
048
051
Sewer (Wastewater) Funds are used to account for Town operations that are financed and operated like a private business enterprise. The Sewer Fund is used to account for sewer treatment, transmission, major replacements and improvements to the Town’s sewer system.

Financial and Personnel Allocation Summaries
46 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Town-Wide Fund Summary
2025-26 Budget Summary
Fund No Fund Title
Estimated Fund Balance @
7/1/2025 Revenue Expenditure Transfers In/(Out)
Projected Fund Balance @
6/30/2026
% Change in
Fund Balance
General Fund
011 General Fund
Pension Trust (Restricted) $ 1,209,137 $ - $ - $ - $ 1,209,137 General Fund Stabilization Reserve $ 2,328,858 $ - $ - $ 784,765 $ 3,113,623 Capital Projects Reserve $ 3,407,739 $ - $ - $ - $ 3,407,739 Disaster Contingency Reserve $ 1,050,000 $ - $ - $ 200,000 $ 1,250,000 Facilities Replacement Reserve $ 4,619,613 $ - $ - $ (1,602,532) $ 3,017,081 Pension Contribution Reserve $ 2,099,951 $ - $ - $ (564,512) $ 1,535,439 Technology Reserve $ - $ - $ - $ - $ -
Vehicle & Equip Reserve $ 409,000 $ - $ - $ 100,000 $ 509,000 Unassigned Fund Balance $ 1,382,681 $ 18,542,021 $ (18,110,844) $ (616,739) $ 1,197,119 Subtotal $ 16,506,979 $ 18,542,021 $ (18,110,844) $ (1,699,018) $ 15,239,138 -7.7% Internal Service Fund
061 General Service Fund $ 822,055 $ 1,426,106 $ (1,426,106) $ - $ 822,055 Subtotal $ 822,055 $ 1,426,106 $ (1,426,106) $ - $ 822,055 0.0% Special Revenue Funds
016 Parks & Recreation in-Lieu $ 446,577 $ - $ - $ 446,577 019 American Rescue Plan Act (ARPA) $ - $ - $ - $ -
021 COPS Fund $ 1,541 $ 115,000 $ - $ 116,541
071 Special Donation $ 34,473 $ - $ - $ 34,473
Subtotal $ 482,591 $ 115,000 $ - $ - $ 597,591 23.8%
Capital Funds
041 General Capital $ 1,667,071 $ - $ (1,169,310) $ 1,169,310 $ 1,667,071 042 Pathway Capital $ 870,904 $ 120,000 $ (565,000) $ - $ 425,904 043 Westwind Barn Capital $ 352,264 $ 50,000 $ (50,000) $ - $ 352,264 045 Drainage Capital $ 677,116 $ 60,000 $ - $ (40,000) $ 697,116 046 Street Capital $ 316,631 $ 925,292 $ (1,495,000) $ 569,708 $ 316,631 Subtotal $ 3,883,986 $ 1,155,292 $ (3,279,310) $ 1,699,018 $ 3,458,986 -10.9% Sewer Funds
048 Sewer CIP $ - $ (906,620) $ 900,000
051 Sewer Operations-Exc Depreciator $ 4,572,863 $ 4,068,264 $ (4,226,442) $ (900,000) $ 3,508,065 Subtotal $ 4,572,863 $ 4,068,264 $ (5,133,062) $ - $ 3,508,065 -23.3% All Funds $ 26,268,474 $ 25,306,683 $ (27,949,323) $ - $ 23,625,834 -10.1%

Financial and Personnel Allocation Summaries
47 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Town-Wide Financial Summary
General Fund Special Revenue Funds General Capital Funds Sewer Fund Internal Service Funds 2024-25
Est. Actual
2025-26
Budget
Proposal
2024-25
Est. Actual
2025-26
Budget
Proposal
2024-25
Est. Actual
2025-26
Budget
Proposal
2024-25
Est. Actual
2025-26
Budget
Proposal
2024-25
Est. Actual
2025-26
Budget
Proposal
Revenues
Property Taxes $ 8,991,000 $ 9,483,540 $ - $ - $ - $ - - $ - $ - - Taxes Other Than Property 650,120 610,750 - - - - - - - - Franchise Fees 652,848 691,500 - - - - - - - -
Licenses and Permits 1,044,918 2,012,774 - - - - - - - - Use of Money and Property 1,552,750 1,030,000 (2,190) - 76,654 50,000 133,344 - - - Intergovernmental Subventions 103,683 46,001 194,664 115,000 1,040,562 818,192 - - - - Charges for Services 733,152 1,241,925 - - 502,817 287,100 6,691 - - - Miscellaneous Revenues 16,745 18,000 - - 2,551,179 - 2,293 - - - Allocations In 3,693,945 3,407,530 - - - - - - 1,228,152 1,426,106 Sewer Connection Fees - - - - - - 211,884 129,430 - -
Sewer Assessment Charges - - - - - - 3,676,728 3,938,834 - - Total Revenues $ 17,439,160 $ 18,542,021 $ 192,473 $ 115,000 $ 4,171,213 $ 1,155,292 $ 4,030,939 $ 4,068,264 $ 1,228,152 $ 1,426,106 Expenditures by Function
General Administration $ 1,986,746 $ 2,510,087 $ - $ - $ - $ - - $ - $ - - Finance & Administrative
Services 1,518,708 1,636,028 - - - - - - 955,450 1,021,892 Public Safety 3,598,964 4,113,524 2,100 - - - - - - -
Community Development 4,355,903 4,817,269 - - - - - - - - Community Services 1,331,226 1,452,365 - - - - - - - -
Public Works 3,085,032 3,574,951 - - - - 3,818,223 4,226,442 272,970 404,214 Capital Projects - - 2,091 - 6,432,216 3,279,310 508,520 906,620 - - Non-Departmental 83,222 6,620 - - - - - - - -
Total Expenditures $ 15,959,800 $ 18,110,844 $ 4,191 $ - $ 6,432,216 $ 3,279,310 $ 4,326,743 $ 5,133,062 $ 1,228,420 $ 1,426,106 Operating Surplus/(Deficit) $ 1,479,360 $ 431,177 $ 188,283 $ 115,000 (2,261,003) $ (2,124,018) (295,804) $ (1,064,798) $ (268) $ - Transfers In/(Out)
Transfers In - - - - (3,504,386) (1,739,018) (910,452) (900,000) - - Transfers Out 1,918,266 1,699,018 813,105 - 40,000 40,000 900,000 900,000 - - Total Transfers In/(Out) $ 1,918,266 $ 1,699,018 $ 813,105 $ - $ (3,464,386) $ (1,699,018) $ (10,452) $ - $ - $ - Change in Fund Balance (438,906) (1,267,841) (624,822) 115,000 1,203,383 (425,000) (285,352) (1,064,798) (268) - Beginning 16,945,885 16,506,979 1,107,413 482,591 2,680,603 3,883,986 10,842,131 10,556,779 822,323 822,055 Ending Fund Balance $ 16,506,979 $ 15,239,138 $ 482,591 $ 597,591 $ 3,883,986 $ 3,458,986 $ 10,556,779 $ 9,491,981 $ 822,055 $ 822,055

Financial and Personnel Allocation Summaries
48 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan General Fund Revenues and Expenditures by Category
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25 Budget
to 2025-26
% Difference
2024-25 Budget
to 2025-26
Revenues
Property Taxes $ 7,592,740 $ 8,153,742 $ 8,531,557 $ 8,914,040 $ 8,991,000 $ 9,483,540 569,500 $ 6% Taxes Other Than Property 813,073 575,010 599,106 610,750 650,120 610,750 - 0% Franchise Fees 414,154 391,129 665,597 589,000 652,848 691,500 102,500 17% Licenses and Permits 2,529,635 1,366,066 1,837,123 1,647,892 1,044,918 2,012,774 364,882 22% Use of Money and Property (605,265) 344,281 1,108,231 1,127,000 1,552,750 1,030,000 (97,000) -9% Intergovernmental Subventions 100,484 38,439 49,422 36,000 103,683 46,001 10,000 28% Charges for Services 1,179,569 1,035,404 1,099,638 1,036,800 733,152 1,241,925 205,126 20% Miscellaneous Revenues 118,586 82,691 69,012 18,000 16,745 18,000 - 0% Allocations In 2,883,486 2,962,480 2,999,794 3,711,885 3,693,945 3,407,530 (304,355) -8% Total Revenues $ 15,026,463 $ 14,949,242 $ 16,959,479 $ 17,691,367 $ 17,439,160 $ 18,542,021 850,653 $ 5% Expenditures
Personnel $ 3,753,452 $ 3,948,097 $ 4,269,910 $ 4,900,238 $ 4,495,871 $ 5,411,988 511,752 $ 10% Contractual Services 4,209,624 4,747,417 5,871,804 6,509,654 5,623,450 6,053,859 (455,795) -7% Professional Services 360,148 292,658 388,138 449,555 375,254 347,204 (102,351) -23% Operations 1,131,830 1,106,878 1,160,146 1,683,498 1,451,087 1,691,737 8,237 0% Capital Outlay Spending 232 23,429 - 2,000 511 - (2,000) 0% Miscellaneous Expenditures 21,865 - - 232,000 182,000 242,000 10,000 4% Allocations Out 3,308,587 3,570,115 3,533,074 4,299,969 3,831,627 4,364,056 64,085 1% Total Expenditures $ 12,785,738 $ 13,688,594 $ 15,223,073 $ 18,076,915 $ 15,959,800 $ 18,110,844 33,928 $ 0% Operating Surplus/(Deficit) $ 2,240,725 $ 1,260,648 $ 1,736,406 $ (385,548) $ 1,479,360 431,177 $ 816,724 -212% Transfers In/(Out)
Transfers In (638,923) - (177,488) (38,976) - - (38,976) 0% Transfers Out 1,756,479 2,585,871 1,725,369 1,897,362 1,918,266 1,699,018 (198,344) -10% Total Transfers In/(Out) $ 1,117,556 $ 2,585,871 $ 1,547,881 $ 1,858,386 $ 1,918,266 $ 1,699,018 $ (159,368) -9% Change in Fund Balance $ 1,123,169 $ (1,325,223) $ 188,525 $ (2,243,934) $ (438,906) $ (1,267,841) $ 976,093 -43% Fund Balance
Beginning 16,960,479 18,083,648 16,758,425 16,048,510 16,945,885 16,506,979 458,469 3% Ending Fund Balance $ 18,083,648 $ 16,758,425 $ 16,945,885 $ 13,804,576 $ 16,506,979 $ 15,239,138 $ 1,434,562 10%

Financial and Personnel Allocation Summaries
49 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Internal Service Fund Revenues and Expenditures by Category 2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25 Budget
to 2025-26
% Difference
2024-25 Budget
to 2025-26
Revenues
Miscellaneous Revenues $ - $ 11,601 $ 10,942 $ - $ - $ - - $ 0% Allocations In 794,605 1,003,314 911,652 1,371,729 1,228,152 1,426,106 54,377 4% Total Revenues $ 794,605 $ 1,014,915 $ 922,594 $ 1,371,729 $ 1,228,152 $ 1,426,106 54,377 $ 4% Expenditures
Personnel $ 151,928 $ 36,154 $ 98,635 $ 231,941 $ 480,279 $ 378,604 146,662 $ 63% Contractual Services 143,983 267,525 258,395 304,000 284,245 351,000 47,000 15% Professional Services 148,061 100,981 147,448 213,000 186,896 68,000 (145,000) -68% Operations 326,046 419,728 294,366 383,850 274,149 495,364 111,514 29% Capital Outlay Spending - 5,772 2,606 133,138 2,851 133,138 - 0% Miscellaneous Expenditures 172,892 175,351 172,133 - - - - 0% Total Expenditures $ 942,910 $ 1,005,512 $ 973,582 $ 1,265,929 $ 1,228,420 $ 1,426,106 160,176 $ 13% Operating Surplus/(Deficit) $ (148,305) $ 9,403 $ (50,988) $ 105,800 $ (268) - $ (105,800) -100% Transfers In/(Out)
Transfers In
Transfers Out
Total Transfers In/(Out) $ - $ - $ - $ - $ - $ - $ - 0%

Financial and Personnel Allocation Summaries
50 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Department Spending (Exclusive of Capital Outlay and Sewer Operations) Expenditures
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25 Budget
to 2025-26
% Difference
2024-25 Budget
to 2025-26
General Fund
General Administration $ 1,613,307 $ 2,082,638 $ 1,734,065 $ 2,307,341 $ 1,986,746 $ 2,510,087 $ 202,747 9% Finance & Administrative Services 1,336,110 1,201,792 1,399,051 1,446,307 1,518,708 1,636,028 189,720 13% Public Safety 2,131,840 2,342,287 3,630,942 3,695,061 3,598,964 4,113,524 418,461 11% Community Development 3,746,154 3,613,076 4,193,926 5,243,641 4,355,903 4,817,269 (426,373) -8% Community Services 1,261,794 1,494,969 1,481,576 1,833,728 1,331,226 1,452,365 (381,366) -21% Public Works 2,416,467 2,835,134 2,783,512 3,550,836 3,085,032 3,574,951 24,119 1% Non-Departmental 280,066 118,698 - - 83,222 6,620 6,620 0% Total Expenditures $ 12,785,738 $ 13,688,594 $ 15,223,073 $ 18,076,915 $ 15,959,800 $ 18,110,844 $ 33,928 0% Internal Service Funds
Town Center $ 710,439 $ 904,050 $ 817,965 $ 823,082 $ 952,161 $ 1,009,914 $ 57,752 6% Corporation Yard Operations 119,337 146,584 142,482 150,295 181,682 225,288 43,605 24% Vehicle Operations 108,955 146,230 131,657 122,674 132,086 178,926 46,841 35% Town Benefit - (195,531) (122,702) 132,368 - 11,978 11,978 0% Office Equipment 4,179 4,179 4,179 - - - - 0%
Total Internal Service Funds $ 942,910 $ 1,005,512 $ 973,582 $ 1,228,420 $ 1,265,929 $ 1,426,106 $ 160,176 13%

Financial and Personnel Allocation Summaries
51 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Sewer Fund
Financial Summary
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25 Budget
to 2025-26
% Difference
2024-25 Budget
to 2025-26
Revenues
Use of Money and Property $ (189,081) $ 24,407 $ 171,190 $ - $ 133,344 $ - - $ 0% Charges for Services 7,349 - 6,145 - 6,691 - - 0%
Miscellaneous Revenues 120 1,946 7,049 - 2,293 - - 0%
Sewer Connection Fees 236,512 97,754 154,081 125,660 211,884 129,430 3,770 3% Sewer Assessment Charges 3,070,792 3,263,652 3,534,615 3,715,880 3,676,728 3,938,834 222,954 6% Total Revenues $ 3,125,692 $ 3,387,759 $ 3,873,080 $ 3,841,540 $ 4,030,939 $ 4,068,264 226,724 $ 6% Expenditures
Personnel $ 67,090 $ 353,709 $ 280,727 $ 309,808 $ 464,713 $ 283,190 (26,618) $ -9% Contractual Services 1,981,724 2,088,210 2,461,461 3,141,121 3,068,771 3,436,000 294,879 9% Professional Services 143,013 14,919 13,100 25,500 51,680 25,500 - 0% Operations 29,305 14,823 14,787 18,600 18,498 18,794 194 1% Capital Outlay Spending (82,409) (95,244) (47,931) 900,000 432,409 900,000 - 0% Miscellaneous Expenditures 236,129 260,918 260,918 - - - - 0% Allocations Out 270,358 289,555 280,939 320,073 290,672 469,578 149,505 47% Total Expenditures $ 2,645,210 $ 2,926,890 $ 3,264,000 $ 4,715,103 $ 4,326,743 $ 5,133,062 417,960 $ 9% Operating Surplus/(Deficit) $ 480,482 $ 460,869 $ 609,080 $ (873,563) $ (295,804) $ (1,064,798) (191,235) $ 22% Transfers In/(Out)
Transfers In (9,300) (1,179,650) (9,858) (900,000) (910,452) (900,000) - 0% Transfers Out - 1,170,350 - 900,000 900,000 900,000 - 0% Total Transfers In/(Out) $ 480,482 $ 460,869 $ 609,080 $ (873,563) $ (295,804) $ (1,064,798) $ (191,235) 22%

52 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Personnel Allocations
FY2021/22 FY2022/23 FY2023/24 FY2024/25 FY2025/26
Community Development
Administrative Clerk / Technician 1.0 1.0 1.0 1.0 1.00
Assistant Community Development Director/
Building Offical - 1.0 1.0 1.0 1.00
Assistant Planner 1.0 1.0 1.0 - 1.00
Associate Planner - - - 1.0 -
Building Inspector 1.0 1.0 1.0 - -
Building / Planning Technician 1.0 1.0 1.0 1.0 1.00
Building Technician - - - - 1.00
Community Dev. Director - - 1.0 1.0 1.00
Management Analyst - - - - 1.00
Planning Director 1.0 1.0 - - -
Principal Planner 1.0 1.0 - - -
Senior Planner 1.0 1.0 2.0 1.0 1.00
Total Community Development 7.0 8.0 8.0 6.0 8.00
Community Services
Community Services Manager - - 1.0 - -
Community Services Supervisor - - - 1.0 1.00
Recreation Specialist 1.0 1.0 1.0 - -
Senior Community Services Supervisor 1.0 1.0 - - -
Total Community Services 2.0 2.0 2.0 1.0 1.00
Engineering
Assistant Engineer 2.0 2.0 2.0 2.0 2.00
Project Manager 1.0 1.0 1.0 1.0 1.00
Public Works Director / City Engineer 1.0 1.0 1.0 1.0 1.00 Public Works Inspector - - - 1.0 1.00
Utilities Manager 1.0 1.0 1.0 1.0 1.00
Total Engineering 5.0 5.0 5.0 6.0 6.00
Executive
Administrative Clerk / Technician 1.0 1.0 1.0 1.0 1.00
City Clerk 1.0 1.0 1.0 1.0 1.00
City Manager 1.0 1.0 1.0 1.0 1.00
Deputy City Manager - - 0.8 1.0 1.00
Management Analyst - - - 1.0 1.00
Management Analyst II 1.0 1.0 0.2 - -
Total Executive 4.0 4.0 4.0 5.0 5.00
Finance & Administrative Services
Accounting Technician 1.0 1.0 1.0 1.0 1.00
Administrative Services Director 1.0 1.0 1.0 - -
Finance Director - - - 1.0 1.00
Senior Accountant 2.0 2.0 2.0 2.0 2.00
Total Finance & Administrative Services 4.0 4.0 4.0 4.0 4.00 Maintenance
Maintenance Superintendent 1.0 1.0 1.0 1.0 1.00
Maintenance Worker I 1.0 1.0 1.0 1.0 1.00
Maintenance Worker II 1.0 1.0 1.0 1.0 1.00
Maintenance Worker III 2.0 2.0 2.0 2.0 2.00

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 53 Financial and Personnel Allocation Summaries
Personnel Allocations (continued)
FY2021/22 FY2022/23 FY2023/24 FY2024/25 FY2025/26
Total Maintenance 5.0 5.0 5.0 5.0 5.00
FY2021/22 FY2022/23 FY2023/24 FY2024/25 FY2025/26
Summary
Community Development 7.0 8.0 8.0 6.0 8.00
Community Services 2.0 2.0 2.0 1.0 1.00
Engineering 5.0 5.0 5.0 6.0 6.00
Executive 4.0 4.0 4.0 5.0 5.00
Finance & Administrative Services 4.0 4.0 4.0 4.0 4.00
Maintenance 5.0 5.0 5.0 5.0 5.00
Total 27.0 28.0 28.0 27.0 29.00
The Management Analyst in Community Development is shared between Community Development and Finance & Administrative Services.

Positions with a slash (e.g., Clerk/Technician) reflect a budgeted role with potential for internal promotion.

54 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
FY 2025-26 Salary Schedule
Annual Range Hourly Range
Minimum Maximum Minimum Maximum
City Manager-Set by Contract $ 303,960 $ 303,960 salary Deputy City Manager $ 166,312 $ 224,522 salary
Assistant to the City Manager $ 139,261 $ 188,004 salary Management Analyst II $ 114,903 $ 155,121 salary
Management Analyst $ 101,995 $ 137,694 $ 49.04 $ 66.20
City Clerk $ 142,998 $ 193,046 salary
Admin Clerk/Technician $ 79,338 $ 107,105 $ 38.14 $ 51.49 Administrative Services Director $ 202,451 $ 273,309 salary Finance Director $ 192,135 $ 259,643 salary
Finance Manager $ 157,297 $ 212,351 salary
Senior Accountant $ 126,833 $ 171,223 salary
Accountant $ 104,098 $ 140,531 $ 50.05 $ 67.56
Accounting Technician $ 94,306 $ 127,314 $ 45.34 $ 61.21 Accounting Office Assistant $ 82,915 $ 111,935 $ 39.86 $ 53.81 Community Development Director $ 202,451 $ 273,309 salary Assistant Community Development Director/Building $ 166,312 $ 224,522 salary Principal Planner $ 142,744 $ 192,705 salary
Senior Planner $ 126,639 $ 170,962 salary
Associate Planner $ 110,222 $ 148,797 $ 53.00 $ 71.54
Assistant Planner $ 93,283 $ 125,931 $ 44.85 $ 60.55
Building Official $ 144,241 $ 194,725 salary
Deputy Building Official/Plan Examiner $ 120,486 $ 162,651 salary Senior Building Inspector $ 113,283 $ 152,930 $ 54.47 $ 73.53 Building Inspector $ 100,323 $ 135,435 $ 48.23 $ 65.12
Building Technician $ 83,353 $ 112,527 $ 40.08 $ 54.10
Public Works Director & City Engineer $ 202,451 $ 273,309 salary Utility Engineering Manager $ 147,086 $ 198,567 salary
Project Manager $ 138,479 $ 186,946 salary
Senior Civil Engineer $ 138,479 $ 186,946 salary
Associate Engineer $ 118,283 $ 159,683 $ 56.87 $ 76.77
Assistant Engineer $ 104,909 $ 141,628 $ 50.44 $ 68.09
Public Works Inspector $ 96,931 $ 130,855 $ 46.60 $ 62.91 Maintenance Superintendent $ 133,740 $ 180,549 salary
Maintenance Worker III $ 85,307 $ 115,164 $ 41.01 $ 55.36 Maintenance Worker II $ 73,559 $ 99,307 $ 35.36 $ 47.74 Maintenance Worker I $ 65,802 $ 88,832 $ 31.64 $ 42.71
Community Services Manager $ 124,726 $ 168,375 salary
Community Services Supervisor $ 102,966 $ 139,005 $ 49.50 $ 66.83 Recreation Specialist $ 64,773 $ 87,443 $ 31.14 $ 42.04

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Department
Budgets

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 57 Depart
ment Budgets
Department Overview
Department/Division
2025-26
Budget
Proposal
General Administration
City Council, City Manager, City Attorney, City Clerk, Committees & Commissions $ 2,510,087 Finance & Administrative Services
Finance & Administrative Services, Community Services Grant, Insurance, Fringe Benefits, Town Center 2,657,920 Public Safety
Public Safety, Animal Control, Citizens Public Safety Program 4,113,524 Community Development
Planning Administration, Planning Commission, Code Enforcement Operations, Building Operations 4,817,269 Community Services
Community Services Administration, Recreation Programs, Special Events, Parks, Westwind Community Barn 1,452,365 Public Works
Engineering Administration, Sewer Operations, Storm Drain Operations, Street Operations, Pathway Operations, Corporation Yard Operations, Vehicle Operations 8,205,607 Capital Projects
General CIP, Pathways CIP, Drainage CIP, Street CIP, Sewer CIP, Westwind Barn CIP 4,185,930 Non-Departmental
Non-Departmental (including Transfers) 2,645,638
Total $ 30,588,340

58 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Cost Allocation
The Cost Allocation Plan (CAP) summarizes a comprehensive analysis completed for the Town to determine the appropriate allocation of costs from central service departments to the departments that provide services directly to the community. The primary objective is to allocate costs from departments that provide services internally to departments that conduct day-to-day operations necessary to serve the community. These internal services costs are those incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted without effort disproportionate to the results achieved.

The methodology used for this CAP is the double-step-down method, which is considered the most accurate and equitable method for allocating costs from central services to operating departments. The double-step-down method utilizes two steps to allocate indirect costs. In the first step, the allocable costs of central service departments are identified and distributed to all departments including the central service departments themselves. The second step is to allocate indirect costs incurred by the central service departments to the operating departments.

The CAP was updated by NBS in 2025, and the revised methodology is reflected in the FY 2025–26 Budget.

Central Services Operations
Benefit Overhead Internal Service Fund
Town Benefit City Council Town Center
City Manager Corporation Yard Operations
City Clerk Vehicle Maintenance Operations
Administrative Services
City Attorney
Insurance
Committee & Commissions
Receiving Departments/Divisions
General Fund Non-General Fund
Community Services Administration Parks and Recreation In Lieu Community Services Grant West Loyola
Police Administration General Capital
Animal Control Pathway Capital
Planning Administration Westwind Barn Capital
Planning Commission Street Capital
Code Enforcement Sewer Capital
Building Operations Storm Drain Capital
Engineering Administration Sewer Operation
Recreation Programs
Special Events
Storm Drain Operations
Pathways Operations
Street Operations
Parks
Westwind Barn
Non-Departmental

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 59 Department Budgets
Allocations In
City Attorney 289,060
City Clerk 315,170
City Council 226,720
City Manager 798,050
Committee & Commissions 260,852
Corporation Yard Operations 225,288
Finance & Administrative Services 1,166,519
Insurance 351,159
Town Benefit 11,978
Town Center 1,009,914
Vehicle Operations 178,926
Total 4,833,636
Allocations Out
Community Services Grant 13,468
Public Safety 508,979
Animal Control 26,455
Planning Administration 1,000,431
Planning Commission 62,059
Code Enforcement Operations 47,186
Recreation Programs 7,513
Community Services Administration 233,058
Building Operations 634,893
Special Events 74,095
Parks 87,442
Westwind Community Barn 114,156
Engineering 544,546
Sewer CIP 6,620
Sewer Operations 462,958
Storm Drain Operations 206,584
Street Operations 339,902
Pathway Operations 456,669
Non-Departmental 6,620
Total 4,833,634

60 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
2025-26 City Council Goals
Maintain Quality of Life and
Community Character Promote Public Safety
Increase Effective Service
Delivery & Governance Protect & Maintain Infrastructure General Administration
Housing Element Programs
Update the maps to reflect new
updated Fire Hazard Severity
Zones FY 2025-2027 Two‐Year Budget
Continue planning and
development of the Master
Pathway Plan
Continue to promote community
building through Town-Wide
Events and Activities
Keep the Town Safe and
prepared for emergencies
through updated EOP, and
updated evacuation annex
FY 2025-26 Annual Financial
Report
Complete design and beign
improvements of corpyad
Work with the Housing Element
Ad Hoc Committee to amend the
certified Housing Element
Complete Safety Element of the
General Plan
FY 2026-27 Annual Financial
Report
Complete installation of fiber
broadband network at priority
areas
Increase public outreach
surrounding ongoing Housing
Element implementation plans
Engage with a consultant
to prepare an Emergency
Communication Study in
consultation with EPRC and City
Council 2025 General Municipal Election
Complete Matadero Cree erosion
control project
Water Efficient Landscape
Ordinance Update
Annual records review 2X per
year
Complete general surfacing
and signage infrastructure
improvements for roadways in
Town
Prepare draft policy/processes
for Historic Preservation; CDD to
review and suggest edits needed
to integrate into General Plan
and Muni Code
Increased workspace for Town
Staff to address community
needs
Promote ongoing adoption
and incentives for Reach Code
Implementation
Investigate Los Altos Hills shre
in the Sewer Processing and
Conveyance Charges with Los
Altos and Palo Alto
Conduct a new service fee study
and review fee structure audit
Fleet and Equipment
procurement
Implement electronic voting for
public meetings
Upgrade the Town website
Conduct a code enforcement
program evaluation
Conduct assessment of expired
Town Permits
Conduct a Town Survey
Public Safety
Continue to promote
Neighborhood Watch groups in
Town and provide a new platform
for communication between
groups Emergency Preparedness
Continue to run public safety
programs such as supplemental
private security service in Town
to reduce residential burglaries Complete Safety Element Fill vacancies in available
overtime deputies patrolling the
Town
Emergency Communication
Notification Study

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 61 Depart
ment Budgets
2025-26 City Council Goals
Maintain Quality of Life and
Community Character Promote Public Safety
Increase Effective Service
Delivery & Governance Protect & Maintain Infrastructure Analyze contract options for law
enforcement services in Town Fire Hazard Safety Zone Updates Home Ignition Zone
Planning & Building
Housing Element program
implementation
Continue to work with the
County on Hazard Mitigation
Plan (HMP) and Community
Fire Protection Plan (CFPP) in
preparation for the Town’s Safety
Element update
Complete Online Application
Intake platform
Amend the zoning code
Continue to update Reach Code
for all projects
Continue to engage residents and
neighbors on site development
projects
Complete General Plan and
Housing Element Annual
Progress Reports and transmit
them to OPR and HCD
respectively
Participated in emergency
preparedness planning and
training opportunities
Continue to improve
checklists and other forms
of communications to inform
new residents and interested
developers of Town planning and
building codes
Rezoning Municipal Code
Amendment, Objective Design
Standards, and Program EIR for
multi-family zoning districts
Continued to engage a parttime consultant (24 hrs./
week) to oversee and manage
code compliance issues and
complaints
Continue to maintain daily
public counter hours and staff
prioritization of customer service
Continue to implement Climate
Action Plan
Continued to focus on prompt
response times to code
compliance matters
Implement additional public
access portals and continue
to make improvements to
the Community Development
websites
Continued to implement
processes and protocol to share
information with the community,
manage construction activities,
and maintain permitting services
during COVID-19 pandemic
Work with advisory committees
to improve effectiveness and
transparency
Develop additional handouts
with Planning and Building fee
information
Update Town’s GIS Base Map to
include recorded maps and other
easements
Parks and Recreation
Deliver monthly community
events/activities to enrich the
lives of residents
Continue working with PIO team
to disseminate information to
the community
Assist and promote with
updating the City Manager
Weekly Report
Assist Public Works with delivery
of CIP
Promote positive customer
service Attend trainings for Logistics
Work with community to answer
questions and/or concerns
Increase program registration
Promote CERT and PEP trainings
for the community
Encouraged community
engagement through
Committees/Commissions,
programs, activities, and events

62 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
2025-26 City Council Goals
Maintain Quality of Life and
Community Character Promote Public Safety
Increase Effective Service
Delivery & Governance Protect & Maintain Infrastructure Continue Playground and
Outdoor Fitness Equipment
annual inspections
Improve Contract Management:

Victoria Dye Equestrian
Agreement and Little League
Agreement
Ensuring all contractors have the
Town added as additional insured
and contracts updated
Continue Emergency Prep:
update training
Improve Facility Use Policy
Streamline Facility Rentals
Public Works
Continue mitigation for roadside
pathways and native paths to
fight stinkwort growth
Complete construction for the
2024 and 2025 Sanitary Sewer
Repair and Replacement project
Promote biking, walking,
and other active means of
transportation through the
Measure B Bike/Pedestrian
Education & Encouragement
Program
Complete the Pathway Impact
Fee Nexus Study
Increase areas for herbicide
spraying to limit stinkwort
growth
Continue to notify and guide
residents of street trees
identified with potential hazards
Continue to provide Public Works
updates for the City Manager’s
Weekly Report
Complete 2024 and 2025
Sanitary Sewer Rehabilitation CIP
Continue Sudden Oak Death
mitigation in Byrne Preserve
Continue sewer operation and
maintenance contract with West
Bay Sanitary District
Continue updating the
Public Works Manual for
standardization of process and
procedures
Complete Storm Water Annual
Report (SCVURPPP)
Electrification of Council
Chambers and Town Hall
Continue Town-wide tree
inspection on highly used
roadways and pathways, park,
and Byrne Preserve
Complete 2024 and 2025
Pavement Rehabilitation and
Storm Drainage Improvement
Continue to address work
order requests through Citizen
Engagement portal and iWorQ
work order system
Complete the El Monte Fire
Station Utility Undergrounding
(Rule 20A) project
Established a new threeyear contract for Open Space
Stewardship and Education
Complete construction of the
Matadero Creek Restoration and
Bank Stabilization, including the
offsite mitigation work at Byrne
Preserve
Construct and rehabilitate
pathways as prioritized and
approved by the Pathways
Committee and City Council
Provide routine pathway
maintenance and work order
service requests throughout the
Town pathways
Work with Technology
Committee and Los Altos Hills
Community Fiber to construct
fiber infrastructure at priority
sites utilizing ARPA funds
Complete Phase 2 of the
Summerhill Pathway project
Complete the Corp Yard Locker
Room project

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 63 Depart
ment Budgets
Pathways Run/Walk
2025-26 City Council Goals
Maintain Quality of Life and
Community Character Promote Public Safety
Increase Effective Service
Delivery & Governance Protect & Maintain Infrastructure Finalize design for Civic Center
Improvements/Town Hall
Addition Phase II

64 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
City Council (011-1100)
General Administration
City Council (011-1100)
Mission:

The mission of the Town of Los Altos Hills is to provide high quality public services and facilities in a fiscally sustainable, responsive, and friendly manner and to foster a safe and healthy community in a semi-rural residential setting.

Organization & Description:

The Council is composed of five members who are elected at-large on a non-partisan basis for 4-year staggered terms. The Mayor is appointed annually from among the elected Council members. The City Council is the governing board of the Town. It provides community leadership, enacts laws, adopts resolutions, ordinances and establishes policies for the Town government. The City Council also adopts the annual budget.

The Council meets the third Thursday of each month in formal, public session and occasionally in additional special meetings and study sessions. All City Council meetings are open to the public and are streamed live on the Town’s website at http://www.losaltoshills.ca.gov. City Council agendas, reports, packets, minutes and video archives of the meetings are posted on the Town’s website. The Mayor and City Council represent the Town on various local, regional, and State policy committees and commissions. The Council also reviews adopted State of California legislation and provides formal input into the legislative process.

Program Summary & Major Services:
> Legislation
> Policy
> Budget
Department Staffing:

The Town has five City Council members.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 65 Depart
ment Budgets
City Council (011-1100)
Department Goals and Accomplishments:
2024-25 Accomplishments 2025-26 Goals
Maintain Quality of Life and Community Character
• Continued to respond to HCD regarding the Housing Element implementation
• The Housing Element Ad Hoc Committee was formed with the goals of revising the Housing Element, revising the Land Use Element, and to strategize on renegotiating the Development Agreement
• Continued to progress Reach Codes in Town as it relates to electrification and remodels
• Promote community building through Town‐wide Events and Activities: this included the Newcomers Event, and the annual Town Picnic which over 2000 residents attended.
• Fully staffed planning and building department, software upgrades in the permitting process (included mobile inspection app, electronic plan submittal) lead to faster project approvals, transparency, and overall efficiency in approving and processing builing permits
• Continue to promote community building through Town‐wide Events and Activities
• Continue progress and implementation of Housing Element Programs
• Work with the Housing Element Ad Hoc Committee to amend the certified Housing Element
• Increase public outreach surrounding ongoing Housing Element implementation plans
• Water Efficient Landscape Ordinance Update
Town Goal: Promote Public Safety
• Decreased the number of burglaries in Town. Burglary rates are now below our 10-year average
• Conducted a third-party review of the Town’s ALPR system • Continued to train staff on all required FEMA courses for disaster service workers and facilitate a Townwide emergency drill.
• Updated the Town’s Safety Element and Emergency Operation Plan
• Completed installation of redundant ISP to Town Hall
• Updating the maps to reflect new updated Fire Hazard Severity Zones
• Keep the Town Safe and prepared for emergencies through updated EOP, and updated evacuation annex
• Complete Safety Element of the General Plan
• Engage with a consultant to prepare an Emergency
Communication Notification Study in consultation with EPRC and City Council
Town Goal: Increase Effective Service Delivery and Governance • Increased effective use of Committees by reviewing the Standing Committee resolution
• Improved employee attraction and retention by discussing compensation philosophy
• Conducted an organizational assessment
• Adopted Town multiple policies including Travel Policy, and Financial Policy
• Hosted the Volunteer dinner
•Adopted mid-year budget updates
•Received the GFOA Certificate of Achievement For Excellence in Financial Reporting
•Working with the Housing Element Ad Hoc Committee to update the Land Use Element in accordance with HCD requirements •Held a successful 2024 General Municipal Election
• Prepare draft policy/processes for Historic Preservation; CDD to review and suggest edits needed to integrate into GP and Muni Code
• Promote ongoing adoption and incentives for Reach Code Implementation
• Conduct new service fee study and review fee structure audit • Implement electronic voting for public meetings
• Upgrade the Town’s Website
• Conduct a Code Enforcement Program Evaluation
• Conduct Assessment of expired Town Permits
•Conduct a Town Survey
Town Goal: Promote and Maintain Infrastructure

66 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
City Council (011-1100)
• Completed the Council Chambers Audio/Video upgrades
• Completed a Corp Yard Master Plan in preparation for the Corporation Yard improvements
•Completed the Town Hall Electrical Panel Upgrade and installed a battery backup system
• Undergrounding Utilities, El Monte Rule 20A Project, is underway and will be completed in the end of 2025
• Heritage House renovations are officially underway and is set to be complete by end of Summer 2025/Early Fall 2025
• Continue planning and development of the Master Pathway Plan (MPP)
• Complete design and begin improvements of corp yard
• Complete installation of fiber broadband network at priority areas
• Complete Matadero Creek erosion control project
• Complete general surfacing and signage infrastructure improvements for roadways in Town
• Increased workspace for Town Staff to address community needs
• Investigate Los Altos Hills Share in the Sewer Processing and Conveyance Charges with Los Altos and Palo Alto
• Fleet and Equipment Procurment
Budget Summary:

The City Council budget for this update to the two-year budget cycle largely followed the previous year’s budget, while adjusting for raising costs of service across the board. Several of the projects identified on the City Council workplan are budgeted here. An example of one of these projects includes the KMVT contract ($40,000), which is related to the video services operation for City Council Meetings, Planning Commission Meetings, and LAHCFD Meetings. There is also a placeholder for the Council to onboard a consultant throughout the year should additional special projects come up (in the amount of $25,000). This is also where staff has placed funds related to items designed on the City Council Workplan, including the emergency notification study, currently estimated at $60,000.

Several major budget items in the City Council’s budget include travel expenses for councilmembers to attend trainings and conferences, costs associated with the goal-setting process, and annual membership dues for organizations in which the Town participates, such as the Santa Clara County Cities Association and the Valley Transportation Authority.

The budget increased by $32,521, or 5% from the FY 2024-25 adopted budget. The budget increase is primarily due to higher personnel costs and increased communications contract expenses to reach residents. This is partially offset by a reduction in publications, which were previously budgeted under the City Manager’s Office.

Expenses related to the annual Volunteer Dinner are within the City Council budget. This includes costs for food, gifts, and catering services. The dinner is budgeted this year at $50,000.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 67 Department Budgets
City Council (011-1100)
City Council Expenditures
308,204 357,572
464,279 547,501 630,759 663,280
Actual Budget
0 250,000
500,000
750,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

68 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
City Council (011-1100)
Hoppin’ Hounds Event at the Westwind Community Barn
Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Allocations In $ 308,204 $ 356,671 $ 464,279 $ 630,759 $ 582,170 $ 452,008 $ (178,751) -28% Total Revenues $ 308,204 $ 356,671 $ 464,279 $ 630,759 $ 582,170 $ 452,008 $ (178,751) -28% Expenditures
Personnel $ 128,562 $ 145,715 $ 156,886 $ 151,809 $ 170,663 $ 189,461 $ 37,651 25% Contractual Services 47,579 49,863 142,930 205,500 129,247 153,000 (52,500) -26% Professional Services 23,453 24,277 12,602 49,000 59,748 26,000 (23,000) -47% Operations 108,610 131,973 150,494 221,950 184,993 292,319 70,369 32% Capital Outlay Spending - 5,744 1,367 2,500 2,851 2,500 - 0% Total Expenditures $ 308,204 $ 357,572 $ 464,279 $ 630,759 $ 547,501 $ 663,280 $ 32,520 5%

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 69 Depart
ment Budgets
City Manager (011-1200)
Mission:

Provide overall management of the Town pursuant to Title 2, Chapter 3, Article 2 of the Municipal Code, execute Council policy, and ensure that residents of Los Altos Hills receive excellent customer service and fair value for their tax dollars.

Organization & Description:

The City Manager Office consists of one budget unit. The City Manager’s Office (CMO) provides oversight of all Town Departments and manages contracts for Law Enforcement services with the County of Santa Clara Sheriff’s Office and Animal Services with the City of Palo Alto. The CMO is responsible for carrying out the policies and directives of the City Council and for the overall management of the Town operations. The CMO is responsible for preparing and submitting the adopted annual Budget and salary plan to the Council. The CMO hires and supervises the Executive Leadership Team that includes the Department Heads of each Town department.

Program Summary & Major Services:
> Direct and organize Town services and departments
> Supervise all public property and assets under jurisdiction of the Council > Recommend the adoption of policies and ordinances as necessary that advance Council Goals > Purchase materials and supplies necessary for the conduct of the public’s business > Enforce contracts, agreements and permits authorized by the Council > Oversee public information, customer service and community engagement > Oversee Emergency Services and serve as Director of the Emergency Operations Center (EOC) > Provide oversight of Law Enforcement and Public Safety operations Department Staffing
FY2025/26
City Manager
CITY MANAGER 1.00
Total City Manager 1.00
Deputy City Manager
BUILDING OPERATIONS 0.05
CITY MANAGER 0.85
ENGINEERING ADMINISTRATION 0.05
PLANNING ADMINISTRATION 0.05
Total Deputy City Manager 1.00
Management Analyst
CITY MANAGER 1.00
Total Management Analyst 1.00
Total Full Time 3.00

70 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
City Manager (011-1200)
Department Goals and Accomplishments:
2024-25 Accomplishments 2025-26 Goals
Town Goal: Maintain Quality of Life and Community Character • Direct and Support Community Development Department in implementation of Housing Element initiatives and ordinances • Provided support in outreach for Community Events by posting and promoting Community events on the City Managers Weekly Newseltters
• Continue to Direct and Support Community Development
Department in implementation of Housing Element initiatives and ordinances
• Increase Our Town publication
Town Goal: Promote Public Safety
• Revised the Town’s ALPR Policy
• Continued to train existing and new staff on all required emergency management courses and host an emergency drill with outside agencies
• Represented the Town in the County’s disaster planning documents such as the Hazard Mitigation plan, and the
Community Wildfire Prevention Plan
• Entered into a new contract with Pal American Private Security • Updated the EOP and ran a successfuly EOP Drill at Town Hall • Installed a redundant ISP to Town Hall
• Update the Evacuation Annex
• Conduct Emergency Communications Study
• Adopt a Plan that explores options for enhanced emergency notification
• Fire Hazard Severity Zones Update
Town Goal: Increase Effective Service Delivery & Governance • Executed a contract with a public access programming
organization
• Completed an organization assessment and bring
recommendations to Council on how to attract and retain good talent for the Town
• Created an RFP and rewarded a contract for IT managed services • Improved staff efficiency through the research and
implementation of an upgraded phone system
• Continue Employee Enhancement & Retention Program +
Onboarding new employees. Within the last year, 5 new full-time employees were added
• Prepare staff to use AI in work through continued training • Complete redesign of Town website
Town Goal: Promote and Maintain Infrastructure
• Assisted the Public Works Department in completing the Town Hall Electrical Panel upgrade which included completion of a Battery Backup system (BESS)
• Brought a plan forward to finish the Town’s pathway system design
• Completed the Broadband Feasibility Study and received Council direction on the next steps
• Bring all Town facility security systems under one platform through implementation of upgraded security camera system • Complete the Town Facilities Energy Efficiency Assessment Budget Summary:

The City Manager’s budget is heavily influenced by the personnel costs of the Town’s staff and employees. Salaries, health care premiums, dental premiums, vision premiums, and retirement planning fall into this category.

The City Manager’s budget also includes meritorious performance raises which are initially budgeted as a placeholder in the City Manager’s Office; however, once the merit increases have been distributed, the personnel expenses are allocated to the respective department’s budget.

The budget increased by $328,217, or 34% from the FY 2024-25 adopted budget due to increases in Personnel and Contractual Services. Personnel costs increased in the FY 2025–26 budget due to a restructuring of personnel allocations within the City Manager’s Office. Specifically, a greater portion of the Deputy City Manager’s time has been allocated to the department, resulting in higher personnel expenses. Contractual Services increased due to

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 71 Depart
ment Budgets
City Manager (011-1200)
the addition of a part-time contract Emergency Services Manager. This position was included in the budget to assist the Town with revising emergency plans, training staff, and supporting the goals of the Emergency Preparedness and Response Committee.

The department budget includes a placeholder for several consultants to support special projects that may arise throughout the year. Given the ongoing staff turnover and the specialized expertise required to advance the City Council’s work plan, maintaining this allocation for external support remains essential. The CMO also conducts the Annual Council Priority Goal Setting which requires consultants to help prepare the plan and administer the Council goal-setting process.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Allocations In $ 519,076 $ 450,298 $ 606,920 $ 976,864 $ 741,197 $ 798,050 $ (178,814) -18% Total Revenues $ 519,076 $ 450,298 $ 606,920 $ 976,864 $ 741,197 $ 798,050 $ (178,814) -18% Expenditures
Personnel $ 414,176 $ 436,114 $ 469,759 $ 473,664 $ 620,864 $ 746,581 $ 272,917 58% Contractual Services 58,066 179,760 75,253 165,000 13,204 236,500 71,500 43% Professional Services 210 512 905 1,200 461 1,200 - 0%
Operations 24,758 25,110 59,802 105,000 83,170 78,800 (26,200) -25% Miscellaneous Expenditures 21,865 - - 232,000 182,000 242,000 10,000 4% Total Expenditures $ 519,076 $ 641,497 $ 605,720 $ 976,864 $ 899,699 $ 1,305,081 $ 328,217 34% City Manager Expenditures
519,076 641,497 605,720
899,699 976,864
1,305,081
Actual Budget
0 500,000
1,000,000
1,500,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

72 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
City Attorney (011-1500)
Mission:

The mission of the City Attorney is to provide the residents of the Town, City Council and staff with high quality, legal advice, and counsel.

Organization & Description:

The Department is comprised of the City Attorney under contract of the law firm of Redwood Public Law and includes all office costs including paralegal, secretarial, clerical, etc. The City Attorney reports directly to the City Council and is charged with the task of serving as the legal counsel to the City Council, Planning Commission, City Manager, and staff on all legal aspects of municipal operations.

Program Summary & Major Services:

Legal services include legal advice and analysis, preparation of legislation including ordinances and resolutions, drafting or review of contracts and agreements, conducting research and supporting the Town in litigation, civil and criminal actions, and code enforcement. The City Attorney attends all regular and special City Council meetings.

Other services include meetings with the City Manager and other city officials on an on-call basis and keeping the City Council, City Manager and staff advised of current laws affecting decisions and programs of the Town.

Department Staffing:

Since the Town contracts for City Attorney services with Redwood Public Law, there is no in-house staffing for City Attorney’s budget.

Department Goals and Accomplishments:
2024-25 Accomplishments 2025-26 Goals
Town Goal: Risk Mitigation
• Attended City Council meetings and Planning Commission meetings to ensure Brown Act Compliance and address other legal matters
• Provided legal advice to the City Council, City Manager, and Town Staff
• Defended the Town in several specific legal matters
• Continue to provide competent legal advice
• Continue to monitor legal developments that affect the Town and report to staff and City Council
• Continue to provide legal defense to the Town
Budget Summary:

The City Attorney’s budget decreased by $80,344, or 24% from the FY 2024-25 adopted budget as staff worked to align the allocation more closely with anticipated actual expenditures for the fiscal year.

As in the prior budget cycle, all projected legal expenses associated with the Community Development and Public Works departments, as well as the Housing Element Capital Improvement Project (CIP), have been reallocated directly to their respective departmental budgets. This includes work on Housing Element implementation, the Safety Element, SB 9 compliance, and Town land rezoning for Community Development, as well as projects such as the Shoup Connector Trail and Maple Leaf/Middle Fork pathways for Public Works.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 73 Depart
ment Budgets
City Attorney (011-1500)
The remaining funds in the City Attorney’s budget are reserved for anticipated expenses related to litigation, settlements, and non–Community Development legal matters.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Allocations In $ 435,749 $ 638,914 $ 277,044 $ 340,000 $ 198,221 $ 289,060 $ (50,940) -15% Total Revenues $ 435,749 $ 638,914 $ 277,044 $ 340,000 $ 198,221 $ 289,060 $ (50,940) -15% Expenditures
Contractual Services $ 285,349 $ 505,200 $ 115,286 $ 160,000 $ 67,383 $ 90,000 $ (70,000) -44% Professional Services 150,400 155,911 161,758 180,000 161,904 169,656 (10,344) -6% Total Expenditures $ 435,749 $ 661,111 $ 277,044 $ 340,000 $ 229,288 $ 259,656 $ (80,344) -24% City Attorney Expenditures
435,749
661,111
277,044 229,288
340,000 259,656
Actual Budget
0 250,000
500,000
750,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

74 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
City Clerk (011-1300)
Mission:

The mission of the City Clerk program is to provide the residents of the Town, City Council and Staff with access to public records and to ensure all facets of agenda preparation, public meetings and municipal elections are conducted according to state law. The City Clerk is the liaison and public information officer between the public and the City Council. The Clerk also provides logistical support to Town committees. The City Clerk’s most important function is to promote openness in government by serving the people’s needs promptly and efficiently.

Organization & Description:

The Town of Los Altos Hills City Clerk program consists of one budget unit, staffed by a City Clerk and a shared Administrative Technician. The basic function of the City Clerk office is to provide administrative support for City Council meetings by preparing agendas, minutes, resolutions and ordinances, coordinate municipal elections, oversee and manage the vital records program, receive Fair Political Practices Commission filings, oversee updating and codification of the Municipal Code and assist the public, maintaining the permanent, non- permanent and historical records and respond to requests for public information in accordance with the Town’s records retention schedule and State Law. Additional duties include completing assignments designated by the City Manager and maintenance Committee minutes and memberships.

Program Summary & Major Services:
> Council and City Manager Support – Facilitate the Council agenda process for the City Manager and Council in compliance with legal requirements
> Town Committee Support – Post agenda, send reminders, maintain attendance records, attend several meetings throughout the year, and assist in coordinating events by various committees > Elections Management – Oversee election contract with County in accordance with State law > Permanent Records Management – Coordinate and monitor Town permanent and non-permanent records and respond to requests for public information in accordance with state law > Public Information Officer – In coordination with the City Manager, issue press releases and utilize Rapid Notify to disseminate information to residents, along with responding to public records requests

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 75 Depart
ment Budgets
City Clerk (011-1300)
Program Summary:

Activity
Measurement
Method 2022/23 2023/24 2024/25
1) Council and Committee Support
a) Council meetings 100% 28 20 30
b) Timely publishing of Council agenda (Friday
before meeting) 100% 100% 100% 100%
c) Volunteer dinner N/A
N/A
Yes
Yes
Yes
Yes
Yes
Event coordination & under budget
Mayor presentation assistance
2) Town Committee Support No of Committee 15/100% 14/100% 25/100% 3) Election/Appointment of City Council No of positions filled 0 3 0
4) Permanent Records Management
a) Public records request, including subpoenas 95 90 98 b) Records (boxes) archived per retention policy Indexed / Purged In progress 35 30 c) Form 700 oversight of all relevant stakeholders 100% 100% 100% d) Monitored and updated the Town’s website
as appropriate, including making Resolutions,
Ordinances and City Council Minutes available 100% 100% 100% 5) Public Information Officer
a) Communication medium used: Website Website Website
Facebook Facebook Facebook
Twitter Twitter Twitter
Nextdoor Nextdoor NextRequest
Nixle Nixle Traditional mail
Traditional mail Traditional mail Constant Contact
b) Participated in Emergency Preparedness
drills and initiated Rapid Notify alerts to CERT
members and Town residents as needed Yes Yes Yes

76 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
City Clerk (011-1300)
Pop-Up Photo Frame at Edith Park
Department Staffing:

The City Clerk manages an Administrative Clerk/Technician, and the labor distribution is as follows:

FY2025/26
Administrative Clerk / Technician
CITY CLERK 0.50
CITY MANAGER 0.05
COMMITTEES 0.40
ENGINEERING ADMINISTRATION 0.05
Total Administrative Clerk / Technician 1.00
City Clerk
CITY CLERK 0.75
CITY MANAGER 0.20
COMMITTEES 0.05
Total City Clerk 1.00
Total Full Time 2.00

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 77 Depart
ment Budgets
City Clerk (011-1300)
Family Game Night
Department Goals and Accomplishments:
2024-25 Accomplishments 2025-26 Goals
Town Goal: Maintain Quality of Life & Community Character • Successful 2024 Election Cycle • Enhance community engagement by promoting volunteer opportunities and increasing resident participation on Town committees
Town Goal: Promote Public Safety
• Actively attended County EOC briefings
• Actively attended County PIO Meetings
• Assisted in other Town events, as applicable
• Actively attended County EOC briefings
Town Goal: Increase Effective Service Delivery & Governance • Coordinated the 2024 Volunteer Dinner
• Assisted with the assembly of the City Manager’s Weekly Report • Meet with Committee Chairs to standardize meeting and committee norms
• Prepare and Post Recaps after regular City Council meetings • Assisted with the quarterly newsletter
• Improve website
• Implemented NextRequest PRA software
• Host the volunteer dinner
• Hold an annual roundtable with committees and Mayor
• Organize the Council Reorganization Meeting
Town Goal: Promote and Maintain Infrastructure
• Continue to provide excellent customer service to Town residents, Town vendors, Town third party partners, and all interested parties
• Continue to provide excellent customer service to Town residents, Town vendors, Town third party partners, and all interested parties

78 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
City Clerk (011-1300)
Budget Summary:

The City Clerk’s Office is a vital component of the Town’s General Administration and is responsible for ensuring transparency, accessibility, and legislative compliance in Town government. Key functions include managing the Town’s public records, preparing and posting agendas and minutes for Town Council and committee meetings, coordinating municipal elections, maintaining compliance with the Brown Act and FPPC regulations, and serving as the custodian of official Town documents.

The City Clerk’s budget increased by $9,680, or 3% from the FY 2024-25 adopted budget due to increases in Personnel costs. The budget supports expanded efforts in committee management, public outreach, and digitization of records for improved transparency and operational efficiency.

Some historical costs, such as the design and printing of the Our Town newsletter, have been reallocated to the City Council’s budget to better align expenses with program oversight. This shift enables the Clerk’s Office to focus on core responsibilities and invest in long-term records management improvements.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Allocations In $ 189,211 $ 230,163 $ 271,101 $ 279,406 $ 261,075 $ 315,170 $ 35,764 13% Total Revenues $ 189,211 $ 230,163 $ 271,101 $ 279,406 $ 261,075 $ 315,170 $ 35,764 13% Expenditures
Personnel $ 165,127 $ 195,316 $ 227,465 $ 174,956 $ 201,594 $ 236,982 $ 62,025 35% Contractual Services 1,555 - - - - - - 0%
Professional Services 17,188 17,126 21,229 21,000 11,943 25,000 4,000 19% Operations 5,340 17,721 22,408 83,450 38,040 27,104 (56,346) -68% Total Expenditures $ 189,211 $ 230,163 $ 271,101 $ 279,406 $ 251,577 $ 289,086 $ 9,679 3% City Clerk Expenditures
189,211 230,163 271,101 251,577 279,406 289,086
Actual Budget
0 200,000
400,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 79 Depart
ment Budgets
Committees and Commissions (011-1700)
Mission:

To build community consensus for proposals or projects; to review written materials; to facilitate a study of issues; to advise on new programs; to provide perspective on established programs; to assess the alternatives regarding issues of community concern and to ultimately forward these recommendations to the City Council for consideration.

Organization & Description:

The City Council has established 14 committees/commissions to review Town programs, projects, and community issues. The Town of Los Altos Hills standing committees have been established by resolution with the exception of the Planning Commission and Senior Commission, which were established by ordinance. All standing committees consist of Town residents who are willing to share their expertise and enthusiasm to contribute to the Town’s direction and vision to make it a better place to live in.

Program Summary & Major Services:

The Town has the following standing committees/commissions:
> Planning Commission
> Emergency Preparedness & Response
> Environmental Design and Protection
> Environmental Initiatives
> Finance and Investment
> History
> Technology
> Senior Commission
> Open Space
> Parks, Recreation, and Community Events
> Pathways
> Public Art (Hiatus)
> Joint Community Volunteer Service Awards
> Youth Commission
Department Staffing:

The Committees and Commissions do not have dedicated in-house staff. The City Clerk’s Office and Parks & Recreation Department offers most of the support, total FTE is 1.04. Additionally, each committee has Council liaison who provide Council oversight and staff support to complete research and analysis as directed by Council.

80 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Committees and Commissions (011-1700)
Barn Lighting Event
Department Goals and Accomplishments:
2024-25 Accomplishments 2025-26 Goals
Town Goal: Maintain Quality of Life & Community Character • Permanent SB 9 Ordinance
• Master fee schedule updates ; ADU fee waiver, fully burdened rates, geo tech
• Continue to implement Climate Action Plan
• Reach Codes
• Implementation of Leaf Blower Ordinance
• Manage New Community Events
• Contract Renewals
• Master fee schedule updates
• Housing Element Implementation
• Contract Renewals
Town Goal: Promote Public Safety
• Enhance preparation and coordination in drills through established schedule of drills
• Coordinate cross-agency volunteer training and further • Disaster Preparedness by the Technology Committee build infrastructure to support town volunteer needs
• Continue Emergency Preparation
• Host Public Safety Forum
• Facilitate Stay Safe Online Event
Town Goal: Increase Effective Service Delivery & Governance • Reviewing and reporting on opportunities to integrate investment and benefit plan funding goals by putting more longterm investments into unfunded Pension Liabilities where rates of return are significantly higher
• Maintain and update Reserves so management has a more easily accessible picture of balances available to discretionary expenditures
• Reviewing and reporting on opportunities to integrate investment and benefit plan funding goals by putting more longterm investments into unfunded Pension Liabilities where rates of return are significantly higher
• Maintain and update Reserves so management has a more easily accessible picture of balances available to discretionary expenditures
Town Goal: Promote and Maintain Infrastructure
• Effective usage of pathway audit layer by the Pathways Committee and Staff
• Support Public Works as they strive to install pathways the City Council has funded (7 CIP projects)
• Systematically strive to keep the Master Pathways Plan and GIS audit layer up to date
• Fence setback policy
• Update SB 9 Ordinance and Revised ADU ordinance for
consistency with SB 9
• Support Public Works as they strive to install pathways the City Council has funded
• Systematically strive to keep the Master Pathways Plan and GIS audit layer up to date
• Fence setback policy
• Update SB 9 Ordinance and Revised ADU ordinance for
consistency with SB 9

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 81 Depart
ment Budgets
Committees and Commissions (011-1700)
Budget Summary:

Committee & Commissions is a General Administrative department. The Committee & Commissions budget decreased by $43,722, or 17% from the FY 2024-25 budget due to the reallocation of staff to other programs.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Charges for Services $ - $ 2,358 $ 3,832 $ - $ - $ - $ - 0% Allocations In 280,404 336,521 258,403 261,994 227,374 260,852 (1,142) 0% Total Revenues $ 280,404 $ 338,879 $ 262,235 $ 261,994 $ 227,374 $ 260,852 $ (1,142) 0% Expenditures
Personnel $ 175,301 $ 219,884 $ 219,241 $ 230,494 $ 193,440 $ 187,718 $ (42,774) -19% Professional Services 47,227 11,674 7,898 21,000 5,660 21,000 - 0% Operations 57,875 107,321 31,265 10,500 9,876 9,554 (946) -9% Total Expenditures $ 280,404 $ 338,879 $ 258,403 $ 261,994 $ 208,976 $ 218,272 $ (43,720) -17% Committees and Commissions Expenditures
280,404
338,879
258,403
208,976
261,994 218,272
Actual Budget
0 200,000
400,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

82 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Finance & Administrative Services (011-1400)
Finance & Administrative Services
Finance & Administrative Services (011-1400)
Mission:

Provide overall management of the Town’s administrative services, execution of the Town’s administrative policies, and ensure the Town organization, including officials, management, and staff, receive high quality effective and efficient administrative support services.

Organization:

The department is comprised of Finance & Administrative Services, Debt Service, Human Resources, Community Services Grants Administration, and Insurance and Risk Management (Worker’s Compensation and General Liability) functions.

Description:

The Finance & Administrative Services Department consists of 4.5 full-time equivalent positions, including the Administrative Services Director/Finance Director, two Senior Accountants, the Accounting Technician, and a 0.5 FTE Management Analyst.

The goals of the Finance & Administrative Services Department are to provide effective oversight and support across the Town’s operations. This includes: ensuring timely and accurate financial transaction processing and reporting; delivering services that safeguard and optimize the use of Town resources for the benefit of the community; promoting workforce practices and policies aligned with federal, state, and local regulations; and implementing safety and risk management procedures that mitigate the Town’s exposure to liability.

Major Services:

The Town has the following functions under Finance & Administrative Services:

Finance
> Financial Planning and Budgeting
> Financial Reporting and Annual Comprehensive Financial Report (ACFR) > Accounts Payable and Disbursements
> Debt Service Administration
> Banking and Cashiering
> Revenue Management
> Investment Management
> External Audit Coordination
> Internal Controls and Compliance
> Financial Systems Administration

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 83 Depart
ment Budgets
Finance & Administrative Services (011-1400)
> Purchasing and Procurement
> Contract Management
> Project Management
> Business License Registration
> On-line Services
Human Resources
> Recruitment and Hiring
> Payroll Administration
> Benefits Administration
> Employee Relations
> Insurance and Risk Management
Program Summary:

Activity
Measurement
Method 2022/23 2023/24 2024/25

1. Maintain/Improve Operating Efficiency
a. Timely month-end close
Average number of
days 32 32
b. Timely year-end close Prior fiscal year September September September c. Clean audit opinion Prior fiscal year Yes Yes Yes
d. GFOA Financial Reporting Award Yes Yes Yes

2. Transparency
a. Budget adoption by June 30 Following fiscal
year Yes Yes Yes
b. GFOA Budget Award Yes Yes Yes
c. Annual Cash & Investment Report Yes Yes Yes
d. Mid-Year Financial Update Yes Yes Yes

3. Workload
a. Number of full-time equivalent employees and
contractors Actual / Budget 3.0/4.0 3.0/4.0 4.0/4.0
b. Number of invoices processed 1,538 1,712 2,773
c. Number of payroll check issued 988 962 1,001
d. Number of journal entries 308 330 360

4. Recruitment Hire / Vacancy 1/3 9/6 6/2

5. Risk Management (See General Liability) -- -- --
Department Staffing
Finance & Administrative Services has a total of 4.0 staff positions. The department also has a 0.5 FTE Management Analyst that is shared with Community Development.

84 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Finance & Administrative Services (011-1400)
FY2025/26
Accounting Technician
FINANCE & ADMINISTRATIVE SERVICES 1.00
Total Accounting Technician 1.00
Finance Director
FINANCE & ADMINISTRATIVE SERVICES 1.00
Total Finance Director 1.00
Senior Accountant
FINANCE & ADMINISTRATIVE SERVICES 2.00
Total Senior Accountant 2.00
Total Full Time 4.00
Department Goals and Accomplishments:
2024-25 Accomplishments 2025-2027 Goals
Town Goal: Maintain Quality of Life & Community Character • Kept the department operational through significant staff turnover
• Received an unmodified opinion on the Annual Comprehensive Financial Report
• Updated employee handbook
• Develop plan for long-term department staffing
• Set up a succession plan
• Update desk procedures on a regular basis
• Cross training
Town Goal: Promote Public Safety
• Staff continues to take all required Emergency Operation courses pertaining to their area in the EOC
• Implement training programs and seek opportunities to host multi-agency training
Town Goal: Increase Effective Service Delivery & Governance • Developed the 2024-26 operating budget, the Town’s first twoyear operating budget • Developed the 5-year capital budget
• Provided mid-year update to the Finance and Investment Committee
• Implemented Tyler AP Automation to streamline Accounts Payable and disbursement processes
• Deployed Gravity budget software to improve budget
development and budget book production
• Deployed Holly job classification and compensation
benchmarking software to enhance position analysis and support data-driven salary decisions
• Upgraded ADP payroll software to improve functionality and efficiency
• Established a sweep account to maximize interest earnings on the Town’s checking balances
• Update policies and procedures and provide cross training for succession planning
• Adopt 2-year budget and 5-year CIP
• Transition from 1-year to 2-year operating budget and 5-year capital improvement plan
• Conduct mid-year adjustments as needed
• Provide mid-year update to the Finance and Investment Committee and City Council
Town Goal: Promote and Maintain Infrastructure
• Promoted Wellness Program
• Attended PLAN JPA and SHARP Board meetings
• Attend PLAN JPA and SHARP board meetings
• Tighten internal control through partnership with Town’s banking service provider

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 85 Depart
ment Budgets
Finance & Administrative Services (011-1400)
Budget Summary:

In FY 2024–25, the Finance and Administrative Services Department implemented Tyler Accounts Payable Automation, deployed the Gravity and Holly software platforms to improve budget development and compensation analysis, implemented upgrades to the Town’s ADP payroll system, established a sweep account to maximize interest earnings, and became fully staffed for the first time in several years—reducing reliance on consultants and improving internal capacity.

The Finance and Administrative Service budget increased by $144,055, or 14% from the FY 2024-25 adopted budget. The increase in Operations costs is due to efforts to enhance internal operations, financial reporting, and service delivery. Key changes include reallocating the recruitment budget from the Town Center and introducing new software systems for budgeting, payroll, and job classification. These updates will improve the accuracy and timeliness of the Town’s budget and Annual Comprehensive Financial Report (ACFR), while also supporting longterm financial transparency.

The increase in Personnel costs is due to the addition of a 0.5 FTE Management Analyst, shared with Community Development. This role will support building deposit tracking, fee studies, budget development, and human resources tasks. It will also allow more HR work—such as recruitments and job classification reviews—to be handled inhouse, reducing consultant use and improving coordination. The position expands Finance’s capacity to support Community Development, particularly in managing building-related financial activity.

Finance & Administrative Services Expenditures
805,243 847,596 970,033 1,004,544 952,199
1,148,599
Actual Budget
0 500,000
1,000,000
1,500,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

86 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Finance & Administrative Services (011-1400)
Touch a Truck Event Fun
Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Allocations In $ 805,243 $ 847,596 $ 936,339 $ 1,004,544 $ 996,067 $ 1,166,519 $ 161,975 16% Total Revenues $ 805,243 $ 847,596 $ 936,339 $ 1,004,544 $ 996,067 $ 1,166,519 $ 161,975 16% Expenditures
Personnel $ 562,511 $ 673,921 $ 421,781 $ 825,774 $ 580,012 $ 888,155 $ 62,380 8% Contractual Services 81,782 75,119 359,732 52,000 230,113 58,400 6,400 12% Professional Services 67,458 58,176 149,919 58,700 61,177 57,448 (1,252) -2% Operations 93,493 40,380 38,601 68,070 80,897 144,596 76,526 112% Total Expenditures $ 805,243 $ 847,596 $ 970,033 $ 1,004,544 $ 952,199 $ 1,148,599 $ 144,054 14%

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 87 Depart
ment Budgets
Insurance (011-1510)
Mission:

To develop Town risk management and safety programs, policies, and procedures and insure the Town’s assets in order to minimize risk and costs.

Organization & Description:

The Administrative Services Director/Finance Director and Deputy City Manager are the Town’s official Risk Managers and members of the PLAN JPA’s Board of Directors. The Town of Los Altos Hills is a member of PLAN JPA (Pooled Liability Annuity Network), a public agency insurance pool sponsored by PLAN that is comprised of 28 greater Bay Area municipalities, including the Town’s benchmark agencies of Woodside, Portola Valley, Atherton, and Hillsborough. As a member, the Town purchases general liability coverage of $5 million with an excess coverage of $10 million, and a Self-Insured Retention or a deductible of $25,000 on liability claims per occurrence. Claims, and incidents that might develop into claims, are referred to PLAN for review and disposition. The Town also participates in PLAN’s property insurance program to provide property insurance of $1 million with a $5,000 deductible per occurrence for all Town owned facilities and capital equipment (vehicles, etc.). The Town also has cyber insurance with PLAN that provides $25 million in coverage. In addition, the Town carries a Public Officials Bond through the PLAN for key Town officials who are entrusted with Town funds.

Program Summary & Major Services:

The program includes managing liability, property and auto claims, insurance programs, as well as developing risk reduction policies and procedures. The budget provides for the premiums as well as any settlements resulting from claims against the Town.

Program Summary:

Activity
Measurement
Method 2022/23 2023/24 2024/25

1. Claims filed
a. General liability (G/L) Open Cases 0 5 1
b. Workers Comp (W/C) Open Cases 0 0 0
c. OSHA’s Form 300A Filing # of injuries 3 1 1
d. Loss Recovery $10,000 $10,000 $10,000

2. Risk Management & Mitigation
a. Wellness Grant (W/C)
• Grant Program $12,000 $12,000 $15,000
• Participants 100% 100% 100%
b. Risk mitigation (G/L) $3,000 $3,000 $3,000
c. Risk Management Framework and Operational Best Practices program Vehicle Policy
Playground
Safety
Heavy
Machine Ops
d. Mandatory Training
• OSHA Training Yes Yes Yes
• Harassment Training (every 2 Yes n/a Yes
e. Ethics Training (All Employees, Council, Planning Commission) Yes Yes Yes

88 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Insurance (011-1510)
Byrne Preserve Heritage Trees
Department Staffing:

General Liability operations are managed by the Finance and Administrative Services Department. The Administrative Services Director/Finance Director provides oversight of all new and ongoing claims as well as manages the financial aspect of the claims as well as participates in Board meetings for PLAN JPA and SHARP groups.

Department Goals and Accomplishments:
2024-25 Accomplishments 2025-2027 Goals
Town Goal: Risk Mitigation
• Identify and reduce risks to the Town
• Process and handle liability claims in a timely manner, so claim expenses and legal costs can be minimized
• Continue to identify and reduce risks to the Town
• Process and handle liability claims in a timely manner, so claim expenses and legal costs can be minimized
• Continue to seek recovery of costs from third parties • Implement new risk management and safety policies and procedures
• Work closely with PLAN JPA on updating the Risk Management Framework and Operational Best Practices
Budget Summary:

The Insurance program is a Finance & Administrative Services function. The Insurance budget increased by $33,924, or 8%, from $400,000 for FY 2024-25 to $434,000 for FY 2025-26. This increase is primarily due to rising insurance premiums, which are driving up PLAN JPA dues. Insurance operating costs—net of any insurance proceeds and recoveries—are fully allocated to the respective service departments.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 89 Depart
ment Budgets
Insurance (011-1510)
Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Miscellaneous Revenues $ 48,285 $ 4,172 $ 21,667 $ - $ - $ - $ - 0% Allocations In 464,936 249,114 328,190 400,000 867,090 351,159 (48,841) -12% Total Revenues $ 513,221 $ 253,286 $ 349,858 $ 400,000 $ 867,090 $ 351,159 $ (48,841) -12% Expenditures
Operations $ 513,221 $ 253,286 $ 344,334 $ 400,000 $ 511,393 $ 433,924 $ 33,924 8% Total Expenditures $ 513,221 $ 253,286 $ 344,334 $ 400,000 $ 511,393 $ 433,924 $ 33,924 8% Insurance Expenditures
513,221
253,286 344,334
511,393
400,000 433,924
Actual Budget
0 250,000
500,000
750,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

90 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Community Services Grant (011-1600)
Mission:

To provide financial incentive to certain community service non-profit organizations.

Description:

Annual budgetary appropriation of grant funding to be awarded to qualified community non-profit organizations.

Program Summary & Major Services:

Every year, the City Council receives requests from community service agencies for grant monies to support programs that directly benefit residents. Historically, the City Council has identified non-profit organizations that provide services and programs to all residents. These organizations have included Community Health Awareness Council (CHAC), Friends of Deer Hollow Farm, Hidden Villa, and Los Altos Chamber of Commerce.

Department Staffing:

There is minimum in-house support, primarily from Finance and City Council. 2024-25 Accomplishments:

Funds were provided to CHAC, Hidden Villa, Community Services Agency, Friends of Deer Hollow Farm, the County Food Program, and NCLA to serve residents of Los Altos Hills.

Objectives:

Continue financial support to selected community service non-profit organizations.

Budget Summary:

The Community Services Grant budget is almost entirely dedicated to funding community grants, with a very small amount attributable to covering Town-wide overhead charges. The Community Services Grant budget increased by $11,743, or 28% from the FY 2024-25 adopted budget due to an increase in Allocations from a new Cost Allocation Plan. The budget for grants in FY 2025-26 is $40,000.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 91 Depart
ment Budgets
Community Services Grant (011-1600)
Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Expenditures
Personnel $ - $ - $ - $ 37 $ - $ 37 $ - 0%
Operations 16,308 99,535 83,234 40,000 53,333 40,000 - 0% Allocations Out 1,338 1,374 1,450 1,726 1,783 13,468 11,742 680% Total Expenditures $ 17,645 $ 100,910 $ 84,684 $ 41,762 $ 55,116 $ 53,505 $ 11,742 28% Community Services Grant Expenditures
17,645
100,910 84,684
55,116 41,762 53,505
Actual Budget
0 50,000
100,000
150,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

92 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Town Center (061-1480)
Budget Summary:

The Town Center is an internal services division. Internal Service Fund expenditures are allocated to various departments and accounted for within “Allocations Out”. The Town Center budget increased by $57,753, or 6%, compared to the FY 2024-25 adopted budget. This increase is a combination of increased Personnel costs attributable to this program.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Miscellaneous Revenues $ - $ (13,239) $ 10,942 $ - $ - $ - $ - 0% Allocations In 579,801 750,820 674,828 952,161 917,145 1,009,914 57,753 6% Total Revenues $ 579,801 $ 737,581 $ 685,770 $ 952,161 $ 917,145 $ 1,009,914 $ 57,753 6% Expenditures
Personnel $ 76,093 $ 127,372 $ 119,420 $ 125,123 $ 187,684 $ 185,292 $ 60,168 48% Contractual Services 112,907 250,158 229,028 273,500 261,612 308,000 34,500 13% Professional Services 148,061 100,981 146,463 212,000 186,896 67,000 (145,000) -68% Operations 242,740 294,872 191,177 210,900 186,891 318,984 108,084 51% Capital Outlay Spending - 29 1,239 130,638 - 130,638 - 0% Miscellaneous Expenditures 130,638 130,638 130,638 - - - - 0% Total Expenditures $ 710,439 $ 904,050 $ 817,965 $ 952,161 $ 823,082 $ 1,009,914 $ 57,752 6% Town Center Expenditures
710,439
904,050 817,965 823,082 952,161 1,009,914
Actual Budget
0 500,000
1,000,000
1,500,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 93 Depart
ment Budgets
Public Safety (011-2100)
Public Safety
Public Safety (011-2100)
Mission:

To work in partnership with Town departments and the community to protect life and property and improve the quality of life of all residents.

Organization:

The Town contracts with the County of Santa Clara Sheriff’s Office for law enforcement services including regular patrols, responses to emergency and 911 calls, investigative services, and specialized law enforcement services as needed. Animal control services are contracted through the City of Palo Alto.

Program Summary & Major Services:

The Santa Clara County Sheriff’s Office and Palo Alto Animal Services are dedicated to the preservation of public safety by providing innovative and progressive service in partnership with the Los Altos Hills community, and to protect animals and promote their humane treatment.

Program Summary:

Activity
Measurement
Method 2021/22 2022/23 2023/24

1. Santa Clara County Sheriff
a. Average response time
Priority 1 calls Actual / Target 4.36/9 7.19/9 10.47/9
Priority 2 calls Actual / Target 11.04/14 9.82/14 8.49/14 Priority 3 calls Actual / Target 14.37/25 12.12/25 8.49/25 b. Crime related activities
Number of crime reports
(Public Safety Report, Selected Crimes) 87 109 94
Category with most calls
Residential
Burglary
Residential
Burglary
Residential
Burglary
c. Traffic related activities
Number of events 350 333 241
Category with most calls Other Citations Other Citations Other Citation d. Community Outreach/Education Yes Yes Yes

2. Palo Alto Animal Services 329 375 348

3. Emergency Preparedness meeting – To update emergency policy, case studies, etc. 19 25 24
Department Staffing:

The Town contracts with Santa Clara Sheriff’s Office for law enforcement services. There is no in-house staff allocated to this department. The traffic safety services from Santa Clara County Sheriff’s Office and utilizing Citizen’s Option for Public Safety grant for these services.

94 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Public Safety (011-2100)
Department Goals and Accomplishments:
2024-25 Accomplishments 2025-26 Goals
Town Goal: Maintain Quality of Life & Community Character • Created 19 active Neighborhood Watch Zones
• Furthered public education on public safety by hosting community events
• Hosted Monthly Coffee with the Sheriff virtual events for residents to talk with their law enforcement providers
• Provided funding for overtime deputies to patrol the Town in peak crime hours
• Continue to promote Neighborhood Watch groups in Town and provide a new platform for communication between groups • Continue to run public safety programs such as supplemental private security service in Town to reduce residential burglaries • Fill vacancies in available overtime deputies patrolling the Town • Analyze contract options for law enforcement services in Town Emergency Preparedness
• Patrolled the streets of Los Altos Hills
• Continued to assist in fingerprinting services for all disaster workers - Town Staff and volunteers
• Participate in the Town evacuation drill
• Stay current on emergency trainings from FEMA and CalOES Transparency
• Provided weekly and monthly reports on sheriff services sent out to the community as part of the City Manager’s Weekly Report • Attended City Council meetings and presented public safety reports for the Town
• Continue to provide detailed weekly and monthly reports of sheriff services through the City Manager’s Weekly
Budget Summary:

The Public Safety budget increased by $396,343, or 11% from the FY 2024-25 adopted budget.

The increase in the FY 2025–26 Public Safety budget is primarily driven by higher contract costs with the Santa Clara County Sheriff’s Office and the consolidation of all law enforcement-related expenses into a single program.

Key changes include:
> An 8% increase in the rate for base law enforcement services, raising the cost to $2,705,266. > A reduction in budgeted overtime for deputy patrols from $200,000 to $100,000. > Centralization of law enforcement costs under the Public Safety account (011-2100) for greater transparency and accountability.
> Costs include:
• Automated License Plate Reader (ALPR) system: $93,000 • Private security (PalAmerican): $500,000
• Neighborhood Watch program: $10,000
• Speed camera cloud services (placeholder): $1,000
In addition, $60,000 has been allocated for a law enforcement consultant, as recommended by the Sheriff’s Contract Ad Hoc Committee, to help evaluate options for future service models.

As in prior years, a year-end reconciliation or “true-up” with the Sheriff’s Office is expected. For example, the Town was invoiced $32,000 and $432,000 over budget in FY 2021–22 and FY 2022–23, respectively, while receiving a $121,964 refund in FY 2023–24 for unused hours. Town staff continues to work closely with the Sheriff’s Office to align services with budgeted levels while maintaining flexibility to respond to community safety needs as they arise.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 95 Depart
ment Budgets
Public Safety (011-2100)
Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Expenditures
Personnel $ - $ - $ 1,954 $ 4,369 $ - $ - $ (4,369) 0%
Contractual Services 1,976,978 2,118,864 3,394,770 3,313,796 3,272,361 3,407,766 93,970 3% Operations - - 11,351 10,000 9,856 13,324 3,324 33%
Allocations Out 146,259 163,694 159,825 205,561 155,279 508,979 303,417 148% Total Expenditures $ 2,123,237 $ 2,282,559 $ 3,567,900 $ 3,533,726 $ 3,437,496 $ 3,930,069 $ 396,342 11% Public Safety Expenditures
2,123,237 2,282,559
3,567,900 3,533,726 3,437,496 3,930,069
Actual Budget
0 2,000,000
4,000,000
6,000,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

96 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Animal Control (011-2150)
Budget Summary:

Animal Control is a division of Public Safety. The Animal Control budget increased by $22,120, or 14% from the FY 2024-25 adopted budget due to a renewal of the contract with Pets in Need, an extension of the animal control services provided through the City of Palo Alto. Under the new contract, rates have increased for services and additional services are being provided to the Town through the contract such as a Hearing Officer for animal control cases that rise to that level of concern. The agreement between the Town and Pets in Need (Palo Alto) has been extended through 2029, a five-year contract. In the past five-year term (2014-2019) there were 732 calls for service in Los Altos Hills and in the concluding contract term of 2019-2024, there were 2,486 calls for service in Los Altos Hills. For FY 2025-26 the agreement calls for LAH to budget $157K for services. Other expenses are for overhead allocations.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Expenditures
Personnel $ - $ - $ - $ 236 $ - $ - $ (236) 0%
Contractual Services - 50,889 53,715 150,000 150,000 157,000 7,000 5% Allocations Out 8,603 8,839 9,328 11,100 11,468 26,455 15,355 138% Total Expenditures $ 8,603 $ 59,728 $ 63,043 $ 161,335 $ 161,468 $ 183,455 $ 22,119 14% Animal Control Expenditures
8,603 8,603
59,728 59,728 63,043 63,043
161,335 161,335 161,468 161,468 183,455 183,455
Actual Budget
0 100,000
200,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 97 Depart
ment Budgets
Citizens Public Safety Program (COPS) (021-6100)
Budget Summary:

Citizens’ Option for Public Safety (COPS) is a California state-funded program that provides supplemental law enforcement funding to counties and cities.

Restructuring occurred within the Citizens Public Safety Program budget for the FY 2024-25 cycle. All expenses that would have been budgeted within the COPS budget have been transferred to the Public Safety budget. Examples of this include Emergency Management services, a law enforcement consultant, the Town’s ALPR system, private security expenses, and more. This restructuring was continued for the FY 2025-26 update.

The COPS fund will be used as a passthrough account for funds received from the state for public safety items.

These funds will then be reclassified to the public safety accounts.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Expenditures
Personnel $ 1,042 $ 1,082 $ (548) $ - $ 1,034 $ - $ - 0% Contractual Services 47,523 344,745 9,209 - 160 - - 0%
Operations 119,254 15,053 - - - - - 0%
Allocations Out 436 1,807 10 - 906 - - 0%
Total Expenditures $ 168,255 $ 362,687 $ 8,671 $ - $ 2,100 $ - $ - 0% Citizens Public Safety Program Expenditures
168,255 168,255
362,687 362,687
8,671 8,671 2,100 2,100
Actual Budget
0 200,000
400,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

98 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Planning Administration (011-3100)
New Art Sculpture at Town Hall
Community Development
Planning Administration (011-3100)
Mission:

The mission of the Community Development Department is to provide professional, courteous, and efficient service to the public, ensure that new development complies with local, state, and federal land use and environmental regulations, and guide the physical development of the Town in a manner that is consistent with the goals and values of the community.

Organization & Description:

The Department comprises Planning, Building, Code Enforcement, and Sustainability Operations. Under the Direction of the Community Development Director, the Department consists of 7.5 full-time employees and 2 intern positions seasonally.

Planning & Code Enforcement Division Building Division
Community Development Director (1 FTE) Assistant Community Development Director/Building Official (1 FTE) Senior Planner (1 FTE) Building Technician/Inspector (2 FTE) Associate/Assistant Planner (1 FTE) Permit Tech (onsite contractor) Administrative Clerk/Technician (1 FTE) Building Inspector (onsite contractor) Management Analyst (0.5 FTE) Plans Examiners (off site contractor)

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 99 Depart
ment Budgets
Planning Administration (011-3100)
Program Summary & Major Services:

The four Divisions within the Department have distinct yet related taskings and areas of focus, allowing the Department to ensure that directives from the State regarding development and growth are complied with while striving to maintain the integrity of the fabric of the Town that makes Los Altos Hills the desirable community that it is. The Planning Division has two primary areas of focus. First, it is responsible for long range planning regarding growth and development of the Town. Long range planning involves the preparation, maintenance and implementation of the Town’s General Plan and Municipal Code. Second, Planning is also responsible for the administration of the Town’s Zoning and Site Development Codes which involves the review and processing of all site development and zoning applications, use permits, environmental reviews (CEQA compliance). The Building Division is responsible for the built environment of the Town, ensuring that development and construction activities are consistent with the land use management and development entitlement efforts performed by Planning, as well as compliant with construction standards and Life/Health/Safety regulations established by the State and other entities. This is achieved through plan checking, permitting, and inspection of building activity within the Town.

Sustainability incorporates elements and activities of both Building and Planning to ensure that the development and operations of the Town promote compliance with environmental and energy efficiency standards while again protecting the elements that make Los Altos Hills one of the most desirable communities anywhere. Finally, Code Enforcement works with both Building and Planning to ensure that visitors, residents, and developers all abide by the rules and regulations within the Municipal Code.

Major Services:
> Site development and Zoning permit review
> Building permit review and inspections
> Municipal Code maintenance
> General Plan administration
> Code enforcement
> Town Hall public information/permit counter
> Records retention and file management
> Planning Commission and City Council support on development and land use matters and Municipal Code amendment
> Intergovernmental relations: MTC/ABAG, LAFCO, SCVWD, BAAQMD, SCCAPO, BAHFA > Grant applications
> Emergency planning-EOC planning function
> Committee liaison: Environmental Design and Protection, Environmental Initiatives, History, Open Space and Pathways
> State housing and land use legislation monitoring

100 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Planning Administration (011-3100)
View from off-road Pathway to La Paloma Road
Program Summary:

Activity
Measurement
Method 2022/23 2023/24 2024/25

1. Planning Applications April thru March
a. Applications Submitted 333 321 281
b. Applications Approved 268 169 85

2. Building Permits April thru March
a. Permits Issued 605 536 708
b. Permits Finaled 412 384 512
c. Total Valuation $88,441,457 $77,692,627.72 $62,651,030.50 d. Inspections Completed 2,401 2601 2807
e. Phone Calls Fielded
4,960 4,880
Unable to identify
data source for
this

3. Code Enforcement April thru March
a. Cases Opened 94 73 107
b. Cases Resolved 159 95 93

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 101 Depart
ment Budgets
Planning Administration (011-3100)
Department Staffing
Community Development has a total of 8 staff positions that are distributed to various divisions and programs as follows. The Management Analyst is shared with Finance & Administrative Services.

FY2025/26
Administrative Clerk / Technician
BUILDING OPERATIONS 0.10
COMMITTEES 0.05
PLANNING ADMINISTRATION 0.30
PLANNING COMMISSION 0.10
TOWN CENTER OPERATIONS (for Internal Service Fund) 0.45 Total Administrative Clerk / Technician 1.00
Assistant Community Development Director/Building Offical BUILDING OPERATIONS 0.92
CODE ENFORCEMENT 0.03
COMMITTEES 0.03
PLANNING ADMINISTRATION 0.02
Total Assistant Community Development Director/Building Offical 1.00 Assistant Planner
PLANNING ADMINISTRATION 1.00
Total Assistant Planner 1.00
Building / Planning Technician
BUILDING OPERATIONS 0.95
CODE ENFORCEMENT 0.05
Total Building / Planning Technician 1.00
Building Technician
BUILDING OPERATIONS 1.00
Total Building Technician 1.00
Community Dev. Director
BUILDING OPERATIONS 0.25
CODE ENFORCEMENT 0.10
COMMITTEES 0.05
PLANNING ADMINISTRATION 0.55
PLANNING COMMISSION 0.05
Total Community Dev. Director 1.00
Management Analyst
BUILDING OPERATIONS 0.25
FINANCE & ADMINISTRATIVE SERVICES 0.50
PLANNING ADMINISTRATION 0.25
Total Management Analyst 1.00
Senior Planner
BUILDING OPERATIONS 0.02
CODE ENFORCEMENT 0.01
COMMITTEES 0.06
PLANNING ADMINISTRATION 0.80

102 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Planning Administration (011-3100)
FY2025/26
PLANNING COMMISSION 0.11
Total Senior Planner 1.00
Total Full Time 8.00
Department Goals and Accomplishments:
2024-25 Accomplishments 2025-2027 Goals
Town Goal: Maintain Quality of Life & Community Character • Housing Element – Certification by the Department of Housing and Community Development (HCD)
• Adopted permanent SB9 Ordinance
• Create SB330 Application form
• Simplified city permitting processes and provided rebate for electrification conversions
• Reach Code Update for remodel projects
• Implemented ADU survey form before building permit issuance • Continue to implement Climate Action Plan
• Housing Element program implementation
• Amend the zoning code
• Complete General Plan and Housing Element Annual Progress Reports and transmit them to OPR and HCD respectively
• Rezoning Municipal Code Amendment, Objective Design
Standards, and Program EIR for multi-family zoning districts • Continue to implement Climate Action Plan
Town Goal: Promote Public Safety
• Continued to implement processes and protocol to share information with the community, manage construction activities, and maintain permitting services
• Participated in emergency preparedness planning and training opportunities
• Continued to focus on prompt response times to code
compliance matters
• Continued to engage a part-time consultant (24 hrs./week) to oversee and manage code compliance issues and complaints • Updated Fire Code and Reach Code for remodel construction • Continue to work with the County on Hazard Mitigation Plan (HMP) and Community Fire Protection Plan (CFPP) in preparation for the Town’s Safety Element update
• Continue to update Reach Code for all projects
• Participated in emergency preparedness planning and training opportunities
• Continued to engage a part-time consultant (32 hrs./week) to oversee and manage code compliance issues and complaints • Continued to focus on prompt response times to code
compliance matters
• Continued to implement processes and protocol to share information with the community, manage construction activities, and maintain permitting services
Town Goal: Increase Effective Service Delivery & Governance • Continued to engage residents and neighbors on site
development projects
• Continued to maintain daily public counter hours and staff prioritization of customer service
• Implemented additional public access portals and continue to make improvements to the Community Development websites • Worked with advisory committees to improve effectiveness and transparency
• Update Town’s GIS Base Map to include recorded maps and other easements
• Completed Ordinance and Checklists for streamlining permitting for EV charging stations
• Updated Master Fee Schedule for Planning and Building applications
• Complete Online Application Intake platform
• Continue to engage residents and neighbors on site
development projects
• Continue to improve checklists and other forms of
communications to inform new residents and interested
developers of Town planning and building codes
• Continue to maintain daily public counter hours and staff prioritization of customer service
• Implement additional public access portals and continue to make improvements to the Community Development websites
• Work with advisory committees to improve effectiveness and transparency
• Develop additional handouts with Planning and Building fee information
• Update Town’s GIS Base Map to include recorded maps and other easements
Budget Summary:

The Planning Division continued to experience a shift in workload during FY 2024-25, with a substantial focus on Housing Element implementation, long-range planning efforts required by state law, and legal challenges to the Town’s policies and development processes. Although planning application volumes have softened due to

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 103 Depart
ment Budgets
Planning Administration (011-3100)
new streamlining laws, significant staff time and consultant resources have been dedicated to housing element amendments, zoning code updates, rezoning efforts, and general plan updates.

Revenue projections as of March 31, 2025, were at 70% of budget, while expenditures were at 82%, resulting in a widening funding gap for long-range planning efforts, which are subsidized by the General Fund. Current planning services — such as site development and zoning permits — remain the primary focus of cost recovery efforts, with a cost recovery target set at 90%. However, overall cost recovery in FY 2024-25 is estimated at approximately 30%, reflecting the ongoing imbalance between long-range planning activities and fee-based services.

The transition from a deposit-based system to flat fees in April 2020 made planning revenue collections more predictable but has not fully addressed the shortfall between revenues and expenditures. To improve future alignment, the Planning Division will implement recommendations from the Cost Allocation Plan and User Fee Study currently underway, which aim to adjust user fees to better reflect the true cost of service delivery and improve cost recovery performance.

In FY 2025-26, Planning Division revenues increased by $117,873, or 23% from the FY 2024-25 adopted budget to $633,673. Expenditures decreased by $268,927, or 12% from the FY 2024-25 adopted budget. This modest expenditure reduction reflects the completion of certain Housing Element adoption activities; however, long-range planning activities will remain at a high level as the Town continues implementing the 6th Cycle Housing Element and prepares for future cycles.

To meet the complexity of ongoing work, the Town will continue augmenting staff capacity in key areas. As a result, costs for services may continue to fluctuate, particularly with the continued reliance on consultant services to meet variable workload demands. FY 2024-25 also included several unique projects, such as the preparation and adoption of the 6th Cycle Housing Element and the processing of several complex Builder’s Remedy applications, which required significant resources and drove up departmental expenses. The Town anticipates these elevated costs will continue through 2026 as Housing Element implementation and long-range policy planning proceed.

Cost Recovery:

The Department’s cost recovery target for current planning services — primarily zoning and site development permits — remains at 90%, based on the previous fee study. However, as reflected in the financial table and chart on page 97, overall revenues have consistently fallen short of covering total expenditures. This shortfall is primarily due to significant long-range planning activities and legal challenges, including Housing Element implementation, builder’s remedy applications, and SB 330 processing, which are not fee-recoverable and require ongoing General Fund subsidy. Revenues are also down because Planning Entitlement fees are artificially low and their percentage of Buildings fees are also low.

The FY 2025-26 budget anticipates improved cost recovery for fee-based current planning activities, following the adoption of updated fee structures resulting from the Cost Allocation Plan and User Fee Study currently underway.

Nonetheless, even with improved fee alignment, long-range planning demands — including implementation and ongoing management of the 60 Housing Element programs — will continue to ensure that a portion of Planning Administration operations will remain dependent on General Fund support.

104 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Planning Administration (011-3100)
Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Charges for Services $ 649,761 $ 653,932 $ 627,950 $ 515,800 $ 359,921 $ 633,673 $ 117,874 23% Total Revenues $ 649,761 $ 653,932 $ 627,950 $ 515,800 $ 359,921 $ 633,673 $ 117,874 23% Expenditures
Personnel $ 622,196 $ 592,784 $ 626,482 $ 631,690 $ 568,327 $ 651,469 $ 19,781 3% Contractual Services 166,290 307,895 363,253 443,000 338,010 281,000 (162,000) -37% Professional Services 15,359 6,143 5,128 17,500 2,778 12,500 (5,000) -29% Operations 25,495 41,089 53,400 40,487 53,419 48,275 7,787 19% Capital Outlay Spending 232 - - 2,000 - - (2,000) 0%
Allocations Out 843,921 898,201 941,648 1,127,924 1,055,375 1,000,431 (127,492) -11% Total Expenditures $ 1,673,492 $ 1,846,112 $ 1,989,910 $ 2,262,601 $ 2,017,909 $ 1,993,674 $ (268,924) -12% Planning Administration Expenditures
1,673,492 1,846,112 1,989,910 2,017,909 2,262,601 1,993,674 Actual Budget
0 1,000,000
2,000,000
3,000,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 105 Depart
ment Budgets
Planning Administration (011-3100)
Car show at the Picnic

106 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Planning Commission (011-3110)
Budget Summary:

The Planning Commission is a five-member body that acts in an advisory capacity to the City Council and reviews and acts on land use, planning, and development applications. The annual compensation for a Planning Commissioner is $1,200, and the Commission typically meets once a month. Costs to operate and support the Planning Commission are generally stable, with minor increases year to year. However, Planning Commission expenditures increased during FY 2024-25 due to extensive work sessions and public hearings related to the Housing Element implementation.

In FY 2025-26, Planning Commission activity is projected to stabilize slightly, although significant meetings will continue for Housing Element program implementation, multifamily rezoning, and adoption of Objective Design Standards. Ongoing legislative changes at the state level, and the continued need for long-range planning updates, will require the Planning Commission’s continued involvement in major policy discussions which in turn will continue to impact the budget.

The Planning Commission budget increased by $47,661, or 61% from the FY 2024-25 adopted budget due to an increase in Allocations from a new Cost Allocation Plan.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Expenditures
Personnel $ 26,590 $ 69,366 $ 119,919 $ 49,361 $ 108,279 $ 49,591 $ 228 0% Professional Services 1,186 1,531 690 1,200 680 1,200 - 0% Operations 4,196 12,965 13,200 17,050 11,840 13,193 (3,857) -23% Allocations Out 8,349 8,577 9,052 10,771 11,128 62,059 51,288 476% Total Expenditures $ 40,319 $ 92,440 $ 142,861 $ 78,382 $ 131,927 $ 126,043 $ 47,659 61% Planning Commission Expenditures
40,319
92,440
142,861 131,927
78,382
126,043
Actual Budget
0 100,000
200,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 107 Depart
ment Budgets
Code Enforcement Operations (011-3120)
Budget Summary:

Code Enforcement Operations are administered by the Community Development Department and overseen by the Community Development Director. The primary expenditure is related to the contract for a part-time code enforcement officer, whose hours were expanded during FY 2024-25 from two to three days per week to four days per week (32 hours weekly) to meet increased community needs. In addition to the contracted officer, Community Development, Building, and Public Works staff support case evaluations and enforcement actions. While limited revenue is generated through fines and penalties, the primary goal of Code Enforcement remains the preservation of community quality of life through adherence to the Municipal Code and timely response to complaints.

Code Enforcement expenditures are expected to hold in FY 2024-25 until program recommendations are evaluated in fall of 2025. However, code enforcement activity is anticipated to increase as more hours are available for case management. Therefore, the projected FY 2025-26 budget is based on the hourly rate of the contract code enforcement officer’s time at 32 hours per week.

The Code Enforcement Operations budget increased by $87,369, or 41% from the FY 2024-25 adopted budget due to the increased hours.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Expenditures
Personnel $ 38,202 $ 21,649 $ 34,809 $ 42,489 $ 26,909 $ 44,258 $ 1,768 4% Contractual Services 131,395 126,940 91,915 138,000 116,252 208,000 70,000 51% Operations 83 - 164 - 16 36 36 0%
Allocations Out 25,399 25,181 25,498 31,621 31,348 47,186 15,564 49% Total Expenditures $ 195,079 $ 173,771 $ 152,386 $ 212,111 $ 174,525 $ 299,480 $ 87,368 41% Code Enforcement Expenditures
195,079 173,771 152,386 174,525 212,111
299,480
Actual Budget
0 200,000
400,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

108 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Building Operations (011-3200)
Budget Summary:

The Building Division experienced strong permit activity throughout FY 2024-25, with annual permit volumes increasing approximately 14% on average over the past several years. However, as of March 31, 2025, actual revenues were lower than projected due to timing delays in the start of several large development projects. Despite this, overall revenues are projected to increase in FY 2025-26 compared to the prior year’s budget, as deferred development activity moves forward.

During FY 2024-25, expenditures rose significantly due to expanded use of consultant services for plan review, inspections, and administrative support, as well as continued enhancements to the Town’s permitting system.

These investments prioritized customer service improvements and operational flexibility to respond to fluctuating construction demand.

The FY 2025-26 budget maintains this approach, with additional investments in permitting technology and administrative capacity to further improve service levels. The Building budget decreased by $292,475, or 11% from the FY 2024-25 adopted budget due to decreases in Contractual Services, Professional Services, and Operations.

Personnel costs are projected to rise with the proposed conversion of a contract Building Technician to a fulltime position and the addition of a shared Management Analyst (in coordination with Finance & Administrative Services). These staffing changes reduce the need for outsourced support, leading to the corresponding decline in contractual expenditures.

To ensure fees more accurately reflect the cost of providing services, the Building Division will implement updates from the Cost-of-Service Study and User Fee Study currently underway. These updates are intended to stabilize future revenue collections and help the division maintain its long-term financial sustainability.

Budget Item Comparison FY24-25 vs FY25-26
Budget Items
FY2024-25
Budget
FY2024-25
Est. Actual
FY2025-26
Budget
Administrative, Plan Review, and Inspection Services $ 415,000 $ 850,000 $ 975,000 One-Time Costs for Studies and Software N/A N/A $ 195,000 Miscellaneous Projects (e.g., File Scanning, Climate Action Plan Support) $ 100,000 N/A $ 297,000 New Annual Costs for Town Center N/A N/A $ 97,000
New Software Subscriptions N/A N/A $ 106,000
Salary Savings from Elimination of One FTE N/A N/A $ (125,000) Total $ 515,000 * $ 850,000 $ 1,545,000 *
* Roughly one million in new expenses for FY25-26.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 109 Depart
ment Budgets
Building Operations (011-3200)
Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Licenses and Permits $ 2,529,635 $ 1,364,594 $ 1,835,241 $ 1,647,892 $ 1,043,121 $ 2,012,774 $ 364,882 22% Charges for Services 7,830 5,265 10,330 105,000 - 149,752 44,752 43% Miscellaneous Revenues 32,400 18,588 37,720 - 12,064 - - 0% Total Revenues $ 2,569,865 $ 1,388,447 $ 1,883,291 $ 1,752,892 $ 1,055,185 $ 2,162,527 $ 409,634 23% Expenditures
Personnel $ 372,573 $ 315,439 $ 476,537 $ 587,500 $ 513,272 $ 743,308 $ 155,807 27% Contractual Services 994,245 639,362 819,917 1,106,558 740,629 782,373 (324,185) -29% Professional Services 185 1,400 24,241 31,955 24,487 - (31,955) 0% Operations 20,436 65,247 72,579 362,641 164,615 237,498 (125,143) -35% Allocations Out 449,825 479,307 515,496 601,894 572,267 634,893 33,000 5% Total Expenditures $ 1,837,263 $ 1,500,754 $ 1,908,769 $ 2,690,548 $ 2,015,270 $ 2,398,073 $ (292,476) -11% Cost Recovery:

The Building Division’s cost recovery target remains between 90% and 95%, consistent with prior financial policies and state law requirements for fee-supported services. As reflected in the financial tables and chart, revenues collected in FY 2024-25 covered a substantial portion of operating costs but fell short of cost recovery, primarily due to fees being less than necessary to achieve targeted revenues Given that the purpose of cost recovery is to collect sufficient fees to offset the staff and consultant costs associated with the full lifecycle of a project, it is important to recognize the timing differences between fee collection and service delivery. The town’s building permit workflow is outlined below.

Plan check fees are collected at the time of initial permit application submittal, while administrative, inspection, impact, and in-lieu fees are collected at permit issuance. However, the services funded by these fees — particularly inspections and construction monitoring — often extend across multiple fiscal years, as many projects in Los Altos Hills, including new home construction and major remodels, typically take two to three years or more to complete.

Building Inspection Expenditures
1,837,263 1,500,754
1,908,769 2,015,270
2,690,548 2,398,073
Actual Budget
0 1,000,000
2,000,000
3,000,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

110 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Building Operations (011-3200)
Recent trends, particularly following the COVID-19 pandemic, have led to some projects exceeding even the threeyear construction timeline.

To better align revenues with the timing of expenditures, the Town is implementing a refined strategy to defer the use of inspection-related revenues across multiple fiscal years. This approach will ensure that the revenues collected at permit issuance are matched to the duration of construction activities, smoothing year-over-year revenue and expenditure patterns and protecting the Town against future shortfalls tied to economic cycles or project delays.

Looking forward, the Building Division expects cost recovery performance to improve following the adoption of updated fees based on the Cost-of-Service Study and User Fee Study currently underway. Routine reassessment of fees will ensure continued alignment between fees collected and the actual costs of service delivery while maintaining the Town’s commitment to customer service and operational transparency.

With the delay between the collection of permit fees and the associated expenditure of staff and consultant time, it is important to understand that Building Division revenues and expenses do not necessarily align with the cost recovery model for each fee type. Thus, as long as inspection revenues are pushed forward and the Town’s expenses remain balanced, the Town will be able to maintain cost recovery of 90-95% moving forward. Reassessment every five years is recommended to help ensure effective cost recovery is achieved. This same approach will also be applied to fees within the planning division and engineering departments to ensure they are meeting their cost recovery goals.

STEP 1
STEP 1
STEP 1
STEP 2
STEP 1
STEP 3
STEP 1
STEP 4
STEP 1
STEP 5
STEP 1
STEP 6
STEP 1
STEP 7
STEP 1
STEP 8
Plan reviews are
completed, and
inspection, impact, and
in-lieu fees are
collected, along with any
applicable deposits.

The building permit is
issued, and
construction may
begin.

Inspections are
conducted at specific
construction
milestones.

Inspections may result
in penalty fees,
additional deposits, or
additional plan reviews,
all of which may come
with additional permit
costs. Plan reviews are
collected once the
review is complete.

Once construction is
finished and all
inspections have been
completed, the permit is
finalized, and deposit
refunds can be
requested.

The property records are
reviewed for any
outstanding issues. If
none exist, deposits are
returned.

Documentation is
reviewed for
completeness. Plan
review fees are
collected, and the
technical reviews are
started.

A building permit
application is submitted
to the Town.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 111 Depart
ment Budgets
Community Services Administration (011-1000)
Community Services (Formerly Parks and Recreation)
Community Services Administration (011-1000)
Mission:

The department develops, implements, and evaluates recreational programs, activities and events for youth, adults, and seniors. Coordinates and supervises recreational uses of Town Hall, Purissima Park, Town Riding Arena and Westwind Community Barn.

Description:

Under the City Manager’s direction, the department comprises one full-time employee, a Community Services Supervisor. Department staff oversees part-time seasonal staff throughout the year, community events, recreation programs, community outreach, independent contractors, Purissima Park, janitorial services for Town facilities, and works closely with Westwind Community Barn Concessionaire.

Program Summary & Major Services:

The Community Services Department performs a variety of assignments including the development, promotion, and management of Town community events, facilities, and recreation programs.

Major services include:
> Community events
> Manages Public Information, and Community Outreach/Engagement on social media, website, and email marketing.
> Produces Bi-Annual Activity Guides
> Manages vendor contracts for community services and recreation services. > Works with Public Works on maintenance/CIP for Purissima Park and Westwind Community Barn > Manages contract with Los Altos/Los Altos Hills Little League and Westwind Community Barn Concessionaire
> Schedules Field and Facility use for Town Hall and Purissima Park > Staff support for Parks, Recreation, and Community Events Committee, Youth and Senior Commissions

112 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Community Services Administration (011-1000)
Program Summary:

Activity
Measurement
Method 2020/21 2021/22 2022/23 2023/24

1. Recreation program
a. Fee Based Classes/Camps April - March 110 (64)25 53 84 b. Fee-Based Participants April - March 430 197 346 409 c. Free Programs April - March 81 (65)8 56 79
d. Total Programs April - March 191 (129)33 109 163

2. Events FY (20)12 11.00 17.00 18.00
a. Shred Event # Households 54/11=165 110/154=264 85/128=213 86/132=218 b. Guess the Pumpkins Weights #Entries 104 entries 98 Entries 223 Entries c. TEDx #Registrations 107
d. Chamber Music #Registrations 56
e. Pathways Run/Walk #Registrations 512 500

3. Notarial Acts FY 115 173 207 305
a. Appointment 48 82 100 89

4. Field Rental (excludes Little League) FY
# of Bookings 20 208 98 60
Total Hours Rented 112 784 395.5 274.5
Revenue $5,600 $25,135 $15,680 5300

4. Westwind Barn Operations FY
a. Summer Camp Registrations 136 96* 139 145
b. Town’s Summer Camp Revenue $16,717 $11,400 $17,600 $21,381 (scheduled but not held due to COVID-19)
*Limited by Health Restrictions
**Limited due to Phase 1 Council Chambers construction
Department Staffing
The Community Services Department has a total of 1.0 staff position which is distributed to various divisions as follows:

FY2025/26
Community Services Supervisor
COMMITTEES 0.15
COMMUNITY SERVICES ADMINISTRATION 0.15
PARKS & REC SPECIAL EVENTS 0.50
WWB FACILITY 0.20
Total Community Services Supervisor 1.00
Total Full Time 1.00

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 113 Depart
ment Budgets
Community Services Administration (011-1000)
Department Goals and Accomplishments:
2024-25 Accomplishments 2025-26 Goals
Town Goal: Maintain Quality of Life & Community Character • Provided community events and activities throughout the year for all ages
• Continue to pivot from virtual/in-person for the changing community needs with COVID-19
• Provided the following in-person community events: Drive Thru Shred Events, Pathways Run/Walk, Car Show, Adult Softball Game, Hoedown, Touch a Truck, Halloween Trick-or-Treating at Town Hall, Barn Lighting, TEDx
• Increase usage of Open Spaces, Pathways and Parks, and Field Rentals
• Conduct Town Surveys for a Facilities Needs Assessment • Deliver monthly community events/activities to enrich the lives of residents
• Promote positive customer service
• Increase program registration
Town Goal: Promote Public Safety
• Continue to use Nixle and social media to disseminate information
• Strengthened number of Community outreach through posting more frequently, updating website
• Completed Annual Inspections on Playground and Outdoor Fitness Equipment
• Ensured all contractors have the Town added as additional insured and contracts updated
• Fire Safety Plan/Emergency Preparedness: Provided consistent messaging and public education for residents regarding safety mitigation measures
• Committees/Volunteers to strengthen effectiveness and leveraged the use of volunteers
• Parks needs assessment: addressed through the budget process • Continue working with PIO team to disseminate information to the community
• Attend trainings for Logistics
• Promote CERT and PEP trainings for the community
• Continue Playground and Outdoor Fitness Equipment annual inspections
• Ensuring all contractors have the Town added as additional insured and contracts updated
Town Goal: Increase Effective Service Delivery & Governance • Made updates to the website, social media, print material, and email marketing materials
• Answered community questions and concerns
• Utilized Recreation software: CivicRec
• Work with community to answer questions and/or concerns • Encouraged community engagement through Committees/
Commissions, programs, activities, and events
• Assist and promote with updating the City Manager Weekly Report
• Work with community to answer questions and/or concerns • Encouraged community engagement through Committees/
Commissions, programs, activities, and events
• Improve Contract Management: Victoria Dye Equestrian
Agreement and Little League Agreement
• Continue Emergency Prep: update training
• Improve Facility Use Policy
• Streamline Facility Rentals
Town Goal: Promote and Maintain Infrastructure
• Assist Public Works with delivery of CIP • Assist Public Works with delivery of CIP

114 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Community Services Administration (011-1000)
Budget Summary:

The Community Services Administration expenditures include costs associated with implementing City Council priorities, including community events, Town community surveys, improved communication with staff and Council, increased transparency, and continued emergency preparedness efforts.

The Community Services budget decreased by $559,796, or 62% from the FY 2024-25 adopted budget due to reductions in personnel costs and allocations. This reflects a staffing change from a Community Services Manager and Recreation Specialist in the prior year to a single Community Services Supervisor in FY 2025–26. The increase in Contractual Services and Operations is primarily due to the transfer of activity guide-related costs—including content development, design, and printing—from the City Manager’s budget to the Community Services budget.

With The Quarterly publication no longer in production, the design and implementation of the biannual activity guide has been reinstated within the department. As a result, it is more appropriate for Community Services to manage the project directly. The guide will continue to be supported by consulting services for both design and production.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Expenditures
Personnel $ 151,803 $ 195,679 $ 69,550 $ 156,143 $ 64,956 $ 53,165 $ (102,976) -66% Contractual Services - - 850 3,000 27 32,000 29,000 967% Professional Services 1,633 9 244 2,500 405 2,700 200 8% Operations 29,415 36,990 27,336 16,300 31,436 29,261 12,960 80% Allocations Out 504,798 582,944 569,969 732,037 497,663 233,058 (498,980) -68% Total Expenditures $ 687,648 $ 815,623 $ 667,949 $ 909,980 $ 594,488 $ 350,184 $ (559,796) -62% Community Services Administration Expenditures
687,648
815,623
667,949 594,488
909,980
350,184
Actual Budget
0 500,000
1,000,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 115 Depart
ment Budgets
Recreation Programs (011-4110)
Budget Summary:

The Recreation Program’s FY 2024-25 actual expenditures were under budget, reflecting a transitional year marked by strategic realignment and operational efficiencies. While actual revenues were lower than projected, the reduced expenditures demonstrate the department’s ability to adapt and operate leanly during a period of reorganization.

This fiscal year underscored the value of partnerships like LAHCFD and SCCFD and the strength of our volunteer and consultant support network. The lower costs in Contractual Services and Operations are a result of intentional planning, as staff focused on evaluating program delivery models and identifying new opportunities for sustainable growth.

Looking ahead to FY 2025-26, the department is optimistic about re-energizing the Recreation Program through a blend of innovative course offerings and renewed community engagement. With foundational work laid this past year, staff will look to build on these efforts by exploring ways to increase participation, generate additional revenue, and enhance programming, all while continuing to prioritize cost-effective operations.

The Recreation Program’s budget decreased by $27,657, or 60% from the FY 2024-25 adopted budget due to reductions in contract personnel and overhead allocations.

Recreation Programs Expenditures
30,189 33,095 31,580 36,577
45,820
18,163
Actual Budget
0 25,000
50,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

116 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Recreation Programs (011-4110)
Tot Lot at Purissima Park
Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Charges for Services $ 10,124 $ 9,481 $ 9,584 $ 9,500 $ 6,827 $ 9,500 $ - 0% Total Revenues $ 10,124 $ 9,481 $ 9,584 $ 9,500 $ 6,827 $ 9,500 $ - 0% Expenditures
Personnel $ - $ - $ - $ 605 $ - $ - $ (605) 0%
Contractual Services 7,692 6,763 6,425 16,000 6,800 10,000 (6,000) -37% Operations 434 3,664 1,234 750 369 650 (100) -13%
Allocations Out 22,063 22,667 23,921 28,465 29,408 7,513 (20,952) -74% Total Expenditures $ 30,189 $ 33,095 $ 31,580 $ 45,820 $ 36,577 $ 18,163 $ (27,657) -60%

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 117 Depart
ment Budgets
Special Events (011-4120)
Budget Summary:

Special Events expenditures in FY 2024–25 came in significantly under budget due to a strategic scaling back of operations and a focus on cost containment. Despite reduced costs, the Town successfully delivered a robust calendar of events with the support of volunteers and careful resource management.

With community events remaining a City Council priority, the FY 2025–26 budget reflects a return to more typical funding levels and renewed investment in operations. Staff will continue to explore cost recovery strategies and utilize community feedback to guide programming decisions, ensuring events are engaging, inclusive, and fiscally responsible.

The Special Events budget increased by $25,285, or 10% from the FY 2024-25 adopted budget. The increase is due to an increase in Allocations from a new Cost Allocation Plan. The decrease in Personnel is due to a staffing change: last year’s budget included a Community Services Manager and a Recreation Specialist, whereas the FY 2025–26 budget includes only a Community Services Supervisor.

This year, the Town experienced record-setting attendance at community events, reflecting strong resident engagement and enthusiasm. The event calendar also features a broader array of offerings than in prior years, including new events that appeal to a wide range of age groups and interests.

Special Events Expenditures
125,184 125,184 166,817 166,817
279,533 279,533
163,758 163,758
262,721 262,721 288,006 288,006
Actual Budget
0 200,000
400,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

118 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Special Events (011-4120)
Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Charges for Services $ 23,063 $ 26,052 $ 24,976 $ 14,000 $ 1,533 $ 24,000 $ 10,000 71% Total Revenues $ 23,063 $ 26,052 $ 24,976 $ 14,000 $ 1,533 $ 24,000 $ 10,000 71% Expenditures
Personnel $ 7,536 $ 13,398 $ 115,647 $ 115,669 $ 89,581 $ 77,311 $ (38,357) -33% Operations 102,919 138,286 117,120 128,050 27,609 136,600 8,550 7% Allocations Out 14,729 15,132 46,766 19,002 46,567 74,095 55,092 290% Total Expenditures $ 125,184 $ 166,817 $ 279,533 $ 262,721 $ 163,758 $ 288,006 $ 25,285 10%

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 119 Depart
ment Budgets
Parks (Renamed From Field Rentals) (011-5100)
Budget Summary:

The Parks budget reflects expenses related to field maintenance and rentals at Purissima Park and Edith Park.

The Parks budget increased by $82,003, or 33% from the FY 2024-25 adopted budget. The increase in Operations is primarily driven by higher water and electricity costs. The decrease in Contractual Services reflects reduced lawncare and landscaping expenses, partially offset by increased clearing costs.

With rentals expected to rebound, staff will monitor field use trends and maintenance needs closely to ensure high-quality play spaces and sustainable operations moving forward.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Charges for Services $ 51,493 $ 50,212 $ 52,585 $ 55,000 $ 3,307 $ 57,500 $ 2,500 5% Total Revenues $ 51,493 $ 50,212 $ 52,585 $ 55,000 $ 3,307 $ 57,500 $ 2,500 5% Expenditures
Personnel $ 70,647 $ 93,504 $ 79,600 $ 64,193 $ 84,955 $ 91,260 $ 27,067 42% Contractual Services 26,075 25,632 46,816 92,000 62,370 70,740 (21,260) -23% Operations 56,631 67,611 54,267 80,000 63,752 83,564 3,564 4% Allocations Out 11,480 11,794 12,447 14,811 15,302 87,442 72,631 490% Total Expenditures $ 164,833 $ 198,541 $ 193,129 $ 251,003 $ 226,379 $ 333,006 $ 82,002 33% Parks Expenditures
164,833 198,541 193,129 226,379 251,003
333,006
Actual Budget
0 200,000
400,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

120 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Westwind Community Barn (011-5300)
Budget Summary:

Westwind Community Barn is a 15-acre property owned by the Town of Los Altos Hills and managed by Concessionaire Victoria Dye Equestrian (VDE). VDE operates the boarding facility and provides instruction. The funding source is Charges for Services; VDE has a new contract and pays the Town 20% of the lesson’s gross revenue and has a step down after $300,000 of gross revenue to 18%. Additionally, the Town collects payment for VDE Riding Camps. Contractual Services is the VDE 80% and 82% split of Camp gross revenue the Town collects and includes VDE concessionaire services approved by the City Council in March 2023. The contract is set to expire on July 31, 2026. In the event of damage caused by weather storms, wildfires, earthquakes or other natural disasters, the Town will cover the costs. For larger projects, VDE must obtain approval of the City Council or City Manager, depending on the scope of the work.

The Westwind Community Barn budget increased by $98,800, or 27% from the FY 2024-25 adopted budget. The increase is due to an increase in Allocations from a new Cost Allocation Plan, as well as Operations costs for supplies.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Intergovernmental
Subventions $ 5,000 $ - $ - $ 5,000 $ - $ 5,000 $ - 0%
Charges for Services 256,065 248,595 233,545 215,000 198,145 215,000 - 0% Miscellaneous Revenues 500 - - - - - - 0%
Total Revenues $ 261,565 $ 248,595 $ 233,545 $ 220,000 $ 198,145 $ 220,000 $ - 0% Expenditures
Personnel $ 47,853 $ 54,603 $ 83,630 $ 76,356 $ 65,421 $ 80,143 $ 3,788 5% Contractual Services 148,584 182,068 173,503 222,000 175,951 224,780 2,780 1% Professional Services 1,750 - - - - - - 0%
Operations 35,026 22,643 29,857 38,750 41,950 43,926 5,176 13% Allocations Out 20,727 21,580 22,395 27,099 26,701 114,156 87,056 321% Total Expenditures $ 253,941 $ 280,894 $ 309,386 $ 364,205 $ 310,024 $ 463,005 $ 98,800 27% Westwind Community Barn Expenditures
253,941 280,894 309,386 310,024 364,205
463,005
Actual Budget
0 250,000
500,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 121 Depart
ment Budgets
Public Works Administration
Public Works
Public Works Administration
Mission:

To effectively manage the Town’s public infrastructure for the benefit of all users and to provide support to other Town departments.

Organization:

The Public Works Department is composed of engineering and maintenance staff providing support to Town communities and departments and overseeing the Town’s public roadways, pathways, stormwater drainage infrastructure, sanitary sewer system, and facilities.

Description:

The Public Works Department is responsible for major capital projects as well as maintaining the Town’s municipal infrastructure and assets. The department also reviews and inspects any work in the Town’s public right-of-way and works closely with Planning and Building staff on private development projects. The department is headed by the Public Works Director/City Engineer.

Program Summary & Major Services:

The department provides support for private development projects, code enforcement issues, Town events, review and response of resident requests, management of the Town’s capital improvement projects, and oversight and maintenance of the Town’s infrastructure and assets.

Program Summary:

Activity
Measurement
Method 2022/23 2023/24 2024/25

1. Capital project management
a. In progress
• Design phase 13 14 8
• Construction phase 5 5 6
b. Completed 7 8 7

2. Public right-of-way maintenance
a. Pathways Linear miles (LM) 83 83 83
b. Annual tree survey # of trees inspected 220 111 147
• Sudden Oak Death spraying in Byrne Preserve # of trees 238 - 238 c. Streets Maintained ( % of 65 total miles ) Linear miles (LM) 7.4 (12%) 4.1 (6.6%) 4.5 (7.2%) d. Sewer Linear miles (LM) 24.7 25 25

3. Permit Review Total # 120 152 116
a. Sewer # of Sewer Permits 46 40 43

4. Los Altos Hills Connect APP / iWorQ Work Order System & Citizen Engagement
# of service requests (
April 1 to March 31 ) 1183 768 700

122 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Public Works Administration
Department Staffing
The Public Works Department has a total of 11 full-time staff positions and are distributed to various divisions as follows:

FY2025/26
Assistant Engineer
BUILDING OPERATIONS 0.10
COMMITTEES 0.10
CORP YARD OPERATIONS (for Internal Service Fund) 0.05
ENGINEERING ADMINISTRATION 0.45
PARKS 0.05
PATHWAY OPERATIONS 0.40
SEWER FUND OPERATIONS 0.40
STORM DRAIN OPERATIONS 0.10
STREET OPERATIONS 0.10
TOWN CENTER OPERATIONS (for Internal Service Fund) 0.25 Total Assistant Engineer 2.00
Maintenance Superintendent
CORP YARD OPERATIONS (for Internal Service Fund) 0.05
PARKS 0.05
PATHWAY OPERATIONS 0.30
SEWER FUND OPERATIONS 0.05
STORM DRAIN OPERATIONS 0.10
STREET OPERATIONS 0.20
TOWN CENTER OPERATIONS (for Internal Service Fund) 0.10 VEHICLE / EQUIPMENT OPERATIONS (for Internal Service Fund) 0.10 WWB FACILITY 0.05
Total Maintenance Superintendent 1.00
Maintenance Worker I
CORP YARD OPERATIONS (for Internal Service Fund) 0.05
PARKS 0.05
PATHWAY OPERATIONS 0.30
SEWER FUND OPERATIONS 0.05
STORM DRAIN OPERATIONS 0.20
STREET OPERATIONS 0.25
TOWN CENTER OPERATIONS (for Internal Service Fund) 0.05 VEHICLE / EQUIPMENT OPERATIONS (for Internal Service Fund) 0.05 Total Maintenance Worker I 1.00
Maintenance Worker II
CORP YARD OPERATIONS (for Internal Service Fund) 0.05
PARKS 0.10
PATHWAY OPERATIONS 0.25
SEWER FUND OPERATIONS 0.05
STORM DRAIN OPERATIONS 0.10
STREET OPERATIONS 0.25
TOWN CENTER OPERATIONS (for Internal Service Fund) 0.05 VEHICLE / EQUIPMENT OPERATIONS (for Internal Service Fund) 0.12

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 123 Depart
ment Budgets
Public Works Administration
FY2025/26
WWB FACILITY 0.03
Total Maintenance Worker II 1.00
Maintenance Worker III
CORP YARD OPERATIONS (for Internal Service Fund) 0.10
PARKS 0.10
PATHWAY OPERATIONS 0.60
SEWER FUND OPERATIONS 0.10
STORM DRAIN OPERATIONS 0.30
STREET OPERATIONS 0.50
TOWN CENTER OPERATIONS (for Internal Service Fund) 0.10 VEHICLE / EQUIPMENT OPERATIONS (for Internal Service Fund) 0.17 WWB FACILITY 0.03
Total Maintenance Worker III 2.00
Project Manager
BUILDING OPERATIONS 0.10
ENGINEERING ADMINISTRATION 0.20
PATHWAY OPERATIONS 0.20
PLANNING ADMINISTRATION 0.20
STORM DRAIN OPERATIONS 0.10
STREET OPERATIONS 0.20
Total Project Manager 1.00
Public Works Director / City Engineer
BUILDING OPERATIONS 0.05
COMMITTEES 0.10
CORP YARD OPERATIONS (for Internal Service Fund) 0.05
ENGINEERING ADMINISTRATION 0.10
PARKS 0.05
PATHWAY OPERATIONS 0.20
PLANNING ADMINISTRATION 0.05
SEWER FUND OPERATIONS 0.15
STORM DRAIN OPERATIONS 0.05
STREET OPERATIONS 0.10
VEHICLE / EQUIPMENT OPERATIONS (for Internal Service Fund) 0.05 WWB FACILITY 0.05
Total Public Works Director / City Engineer 1.00
Public Works Inspector
BUILDING OPERATIONS 0.10
ENGINEERING ADMINISTRATION 0.10
PARKS 0.05
PATHWAY OPERATIONS 0.20
SEWER FUND OPERATIONS 0.20
STORM DRAIN OPERATIONS 0.10
STREET OPERATIONS 0.20
WWB FACILITY 0.05
Total Public Works Inspector 1.00
Utilities Manager
BUILDING OPERATIONS 0.05

124 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Public Works Administration
Westwind Community Barn
Department Goals and Accomplishments:
2024-25 Accomplishments 2025-27 Goals
Town Goal: Maintain Quality of Life & Community Character • Herbicide spraying for selected roadside and off-road pathways to fight stinkwort growth.
• Sudden Oak Death mitigation at Byrne Preserve.
• Addressed approximately 700 work order requests (by end of FY2024/25) through Citizen Engagement portal and iWorQ work order system.
• Stewardship and habitat restoration programs including removal of invasive plants at Byrne Preserve through Grassroot Ecology. • Secured two-year contract extension with Grassroots Ecology for Open Space Stewardship and Education.
• Continue mitigation for roadside pathways and native paths to fight stinkwort growth.
• Increase areas for herbicide spraying to limit stinkwort growth. • Continue Sudden Oak Death mitigation at Byrne Preserve. • Continue to address work order requests through Citizen Engagement portal and iWorQ work order system.

Town Goal: Promote Public Safety
• Started construction for the 2025 Sanitary Sewer Repair Replacement Project.
• Completed Town-wide tree inspections on highly used roadways and pathways, park, and Byrne Preserve. Notified and guided residents on street trees identified as potential hazards. • Sewer operation and maintenance through West Bay Sanitary District.
• Complete construction for the 2025 and 2026 Sanitary Sewer Repair and Replacement project.
• Continue Town-wide tree inspection on highly used roadways and pathways, park, and Byrne Preserve.
• Continue to notify and guide residents of street trees identified with potential hazards.
• Continue sewer operation and maintenance contract with West Bay Sanitary District.
• Apply for grants to complete Local Roadway Safety Plan. • Implement road safety and traffic calming measures on at risk streets.
• Update the Tree Ordinance.

Town Goal: Increase Effective Service Delivery & Governance FY2025/26
COMMITTEES 0.05
ENGINEERING ADMINISTRATION 0.15
PATHWAY OPERATIONS 0.05
PLANNING ADMINISTRATION 0.05
SEWER FUND OPERATIONS 0.40
STORM DRAIN OPERATIONS 0.20
STREET OPERATIONS 0.05
Total Utilities Manager 1.00
Total Full Time 11.00

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 125 Depart
ment Budgets
Public Works Administration
• Preservation of institutional knowledge of Town staff by establishing a standardized filing and archive system.
• Developed a draft of the Public Works Manual for
standardization of process and procedures.
• Provided Public Works updates for the City Manager’s Weekly Report.
• Completed the 2024 Pathway Fee Nexus Study and updated the Pathway In-lieu Fee.
• Promoted biking, walking, and other active means of
transportation through the Measure B Bike/Pedestrian Education & Encouragement Program.
• Purchased two electric vehicles (EVs) for fleet to replace two leased EVs for field visits, inspections, and other Town operations at Town Hall.
• Continue Promoting biking, walking, and other active means of transportation through the Measure B Bike/Pedestrian Education & Encouragement Program.
• Continue to provide Public Works updates for the City Manager’s Weekly Report.
• Continue updating the Public Works Manual for standardization of process and procedures.
• Continue to replace and update Town vehicles and equipment to meet State regulations, Town policies, and goals for Climate Action Plan.

Town Goal: Protect and Maintain Infrastructure
• Bucket/boom truck procurement.
• Ford F250 truck replacement.
• Completed the State Water Board’s annual Storm Water Annual Report.
• Continued to work with Pathway Committee to identify and develop new pathway projects and procedures.
• Completed FY2024/25 Pavement Rehabilitation and Drainage Improvement Project.
• For the El Monte Fire Station Utility Undergrounding (Rule 20A) project, advertised for bid, awarded the construction contract, and completed the joint trench construction for utility companies to undergraound overhead facilities.
• For the Heritage House Upgrade project, completed the Plans and Specificaitons, advertised for bid, awarded the construction project, and submitted all reimbursement invoices to the County for the CDBG program meeting grant requirements.
• For the Corporation Yard Locker Room Phase 1 project, completed the the Plans and Specificaitons, advertised for bid, and awarded the construction project.
• For the Matadero Creek Restoration and Bank Stabilization, completed the value engineering and the Plans and Specifications, advertised for bid, and awarded the construction project. • Replaced over 1/3 of all street name and regulatory signs for the Street Sign Replacement Project.
• Completed offsite mitigation work at Byrne Preserve for the Matadero Creek Restoration and Bank Stabilization project. • Negotiate a fiber infrastructure grant agreement with Los Altos Hills Community Fiber (LAHCF) at priority sites, which Council approved.
• Complete 2025 and 2026 Sanitary Sewer Rehabilitation CIP. • Complete the annual State Water Board’s Storm Water Annual Reports in time.
• Complete FY2025/26 and FY2026/27 Pavement Rehabilitation and Storm Drainage Improvements.
• Work with utility companies to fully underground all overhead facilities at Underground Utility District (UUD).
• Complete the Heritage House Upgrade project.
• Complete the Corp Yard Locker Room Phase 1 project.
• Continue monitoring and maintenance of the offsite mitigation work at Byrne Preserve for the Matadero Creek Restoration and Bank Stabilization project.
• Finalize design and start construction on the Parks & Recreation Building Renovation.
• Finalize updating the pathways fee and develop a long-term plan for pathway construction.
• Construct and rehabilitate pathways as prioritized and approved by the Pathways Committee and City Council.
• Provide routine pathway maintenance and work order service requests throughout the Town pathways.
• Complete design and contruction of Phase 2 of the Summerhill Pathway project
• Complete design and construction of Magdalena Avenue
Pathway.
* Complete design and construction of Page Mill Road -
Christopher’s Lane Pathway Project.
• Initital the design for the Parks and Recreationg Building Renovation.
• Work with LAHCF to complete the installation of fiber infrastructure at priority sites approved by the Technology Committee and the City Council.

126 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Engineering (011-3300)
Budget Summary:

Engineering Administration’s work includes capital improvement management, development reviews, site inspections, contract management, public inquiry research, and support of other Town departments and citizen committees.

The budget decreased by $371,514, or 27% compared to the FY 2024-25 adopted budget largely due to a decrease in billable professional and contract services to be handled by in-house Engineering staff. Engineering review and inspection of private development and sewer projects are reimbursed by applicants. The cost for the Hazardous Waste Program also increased by $15,000 to $35,000.

For FY 2025-26, a Project Manager classification has been created as a mid-level manager position to assist in the management of the Engineering section. This is a promotional opportunity, so there is no change to the total number of full-time employees. The Utility Engineering Manager will focus on managing the sewer and storm infrastructure, while the Project Manager assists in managing engineers for land development reviews, encroachment permits, and CIPs.

Engineering Expenditures
978,883 976,545 1,106,189
1,394,527 1,306,516
1,023,013
Actual Budget
0 1,000,000
2,000,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 127 Depart
ment Budgets
Engineering (011-3300)
Los Altos Hills Sewer Manhole Replacement Project
Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Charges for Services $ 155,081 $ 23,663 $ 105,116 $ 100,000 $ 149,806 $ 130,000 $ 30,000 30% Total Revenues $ 155,081 $ 23,663 $ 105,116 $ 100,000 $ 149,806 $ 130,000 $ 30,000 30% Expenditures
Personnel $ 218,871 $ 299,216 $ 336,634 $ 339,487 $ 332,427 $ 271,174 $ (68,312) -20% Contractual Services 114,764 21,785 89,269 175,000 155,891 107,000 (68,000) -39% Professional Services 30,142 15,098 1,753 51,500 40,500 16,500 (35,000) -68% Operations 52,004 46,790 41,897 83,050 52,699 83,793 743 1% Capital Outlay Spending - - - - 511 - - 0%
Allocations Out 563,103 593,655 636,636 745,490 724,489 544,546 (200,944) -27% Total Expenditures $ 978,883 $ 976,545 $ 1,106,189 $ 1,394,527 $ 1,306,516 $ 1,023,013 $ (371,513) -27%

128 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Sewer (048: Capital, 051: Operation)
Budget Summary:

The Sewer Fund is the Town’s only enterprise fund and is fully supported by sewer service charges to residential and non-residential customers and sewer connection fees for new connections to the sewer system. In 2022, both the sewer connection fees and sewer rate fees were updated to meet the Town’s long-term sewer enterprise funding needs. These funding needs include supporting operations and capital improvements to the Town’s infrastructure.

As a result, the FY 2025-26 and FY 2026-27 sewer service charge rates will increase respectively to $1,957 and $2,035 per main unit of service. FY2026-27 is the last sewer rate increase approved through the 2022 sewer rate study. Each Accessory Dwelling Unit (ADU) sewer service charge is 50% of the main unit service charge.

Due to increasing costs of the Palo Alto Regional Waste Quality Treatment Plant (RWQTP) operations and capital projects, it will be necessary to conduct another sewer rate study in FY 2025-26 in preparation for FY 2026-27.

The Town’s capital budget for sewer main rehabilitation is around $900,000 per year to address the backlog of repairs. In 2024, V.W. Housen & Associates assisted in the development of an asset management approach to the annual sewer capital program. With an overall review of the Town’s sewer system and understanding of the Town’s goals, V.W. Housen & Associates helped develop a five-year capital plan for Town staff to reference when prioritizing project segments for the annual sewer rehabilitation program. The goal still is to limit the number of sanitary sewer overflows (SSOs) and maintain the current service levels. The sewer program expenditures vary from year to year depending on the timing and scope of the capital improvement projects.

While staff manages the overall operations of the sanitary sewer system, the Town contracts with West Bay Sanitary District for the routine maintenance services. Staff manages the sewer contracts, develops and delivers sewer capital projects, prepares studies and long-range planning documents, assists residents with sewer connections and sewer main extensions, and responds to sewer related service requests and emergencies.

The budget increased by $417,959, or 7% from the FY 2024-25 adopted budget. The increase in Contractual Services is primarily due to a $160,000 rise in costs associated with the RWQTP. An additional $125,000 is allocated for consultant services related to Council-directed negotiations with Palo Alto and Los Altos, as well as for a sewer rate study.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 129 Depart
ment Budgets
Sewer (048: Capital, 051: Operation)
Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Use of Money and Property $ (189,081) $ 24,407 $ 171,190 $ - $ 133,344 $ - $ - 0% Charges for Services 7,349 - 6,145 - 6,691 - - 0%
Miscellaneous Revenues 120 1,946 7,049 - 2,293 - - 0%
Transfers In 9,300 1,179,650 9,858 900,000 910,452 900,000 - 0% Sewer Connection Fees 236,512 97,754 154,081 125,660 211,884 129,430 3,770 3% Sewer Assessment Charges 3,070,792 3,263,652 3,534,615 3,715,880 3,676,728 3,938,834 222,954 6% Total Revenues $ 3,134,992 $ 4,567,409 $ 3,882,938 $ 4,741,540 $ 4,941,391 $ 4,968,264 $ 226,724 5% Expenditures
Personnel $ 67,090 $ 353,709 $ 280,727 $ 309,808 $ 464,713 $ 283,190 $ (26,618) -9% Contractual Services 1,981,724 2,088,210 2,461,461 3,141,121 3,068,771 3,436,000 294,879 9% Professional Services 143,013 14,919 13,100 25,500 51,680 25,500 - 0% Operations 29,305 14,823 14,787 18,600 18,498 18,794 194 1% Capital Outlay Spending (82,409) (95,244) (47,931) 900,000 432,409 900,000 - 0% Miscellaneous Expenditures 236,129 260,918 260,918 - - - - 0% Transfers Out - 1,170,350 - 900,000 900,000 900,000 - 0% Allocations Out 270,358 289,555 280,939 320,073 290,672 469,578 149,505 47% Total Expenditures $ 2,645,210 $ 4,097,240 $ 3,264,000 $ 5,615,103 $ 5,226,743 $ 6,033,062 $ 417,960 7% Sewer Expenditures
432,409
2,727,619 4,192,484 3,311,931 4,794,334
900,000 900,000
4,715,103 5,133,062
Actual CIP Actual Ops Budget CIP Budget Ops
-4,800,000
-2,400,000
0 2,400,000
4,800,000
7,200,000
9,600,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

130 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Storm Drain Operations (011-4500)
Budget Summary:

The Storm Drain Operations Program involves ongoing management of the Town’s storm infrastructure, including drainage repairs and maintenance, project administration, monitoring, and annual storm water reporting. The major capital storm drainage improvements are funded by the Drainage Fund collected from developments creating more impermeable areas and are addressed by the annual Storm Drain Improvements on an as-needed basis. Staff continues to review updates needed to the 2004 Storm Drainage Infrastructure Master Plan.

The budget increased by $62,613, or 12% from the FY 2025-26 adopted budget. The increase is due to increases in contract services to fund the Storm Drainage fee study.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Expenditures
Personnel $ 160,683 $ 152,423 $ 219,284 $ 257,570 $ 219,368 $ 265,484 $ 7,916 3% Contractual Services 706 245,420 18,763 25,000 8,333 40,000 15,000 60% Professional Services - 800 - 15,000 5,000 15,000 - 0%
Operations 20,091 22,825 31,205 40,100 52,717 40,054 (46) 0% Allocations Out 120,596 132,859 120,769 166,839 114,270 206,584 39,746 24% Total Expenditures $ 302,076 $ 554,327 $ 390,021 $ 504,509 $ 399,689 $ 567,122 $ 62,616 12% Storm Drain Operations Expenditures
302,076
554,327
390,021 399,689
504,509 567,122
Actual Budget
0 250,000
500,000
750,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 131 Depart
ment Budgets
Street Operations (011-4600)
Budget Summary:

The Street Operations Program supports the ongoing roadway maintenance and operations by the maintenance staff, which includes pavement repairs, crack sealing, and roadside tree maintenance in the public street right-of-way.

The Street Operations budget also covers efforts by the Engineer staff to manage the annual Road Rehabilitation capital program.

The budget increased by $71,685, or 9% from the FY 2024-25 adopted budget. The increase in Personnel is attributed to bringing inspection services in-house, while the decrease in Contractual Services reflects a reduced budget for tree maintenance.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Licenses and Permits $ - $ 652 $ 652 $ - $ 1,387 $ - $ - 0% Miscellaneous Revenues - - 263 - - - - 0%
Total Revenues $ - $ 652 $ 915 $ - $ 1,387 $ - $ - 0%
Expenditures
Personnel $ 208,315 $ 242,952 $ 266,353 $ 314,363 $ 281,167 $ 396,411 $ 82,048 26% Contractual Services 113,487 142,459 87,840 178,300 99,073 148,300 (30,000) -17% Professional Services 3,958 - 2,756 - 159 - - 0%
Operations 12,659 25,487 32,423 27,100 25,101 24,723 (2,377) -9% Allocations Out 236,504 253,144 244,022 317,889 259,501 339,902 22,014 7% Total Expenditures $ 574,923 $ 664,043 $ 633,394 $ 837,652 $ 665,000 $ 909,337 $ 71,685 9% Street Operations Expenditures
574,923 664,043 633,394 665,000
837,652 909,337
Actual Budget
0 500,000
1,000,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

132 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Pathway Operations (011-4740)
Budget Summary:

The Pathway Operations budget increased by $261,331, or 32% from the FY 2024-25 adopted budget, primarily due to higher Personnel costs.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Expenditures
Personnel $ 284,552 $ 348,295 $ 397,589 $ 453,907 $ 449,017 $ 523,648 $ 69,741 15% Contractual Services 84,912 81,431 59,826 90,000 63,881 85,000 (5,000) -6% Professional Services - - - - 350 - - 0%
Operations 2,253 5,246 2,638 12,500 3,455 10,162 (2,338) -19% Allocations Out 188,869 205,248 193,855 257,742 197,124 456,669 198,928 77% Total Expenditures $ 560,586 $ 640,220 $ 653,909 $ 814,148 $ 713,827 $ 1,075,479 $ 261,331 32% Pathway Operations Expenditures
560,586 640,220 653,909 713,827 814,148
1,075,479
Actual Budget
0 500,000
1,000,000
1,500,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 133 Depart
ment Budgets
Corporation Yard Operations (061-4300)
Budget Summary:

Corporation Yard Operations is an internal service fund division, meaning expenditures are allocated to various departments and accounted for within “Allocations Out”.

The Corporation Yard Operations budget increased by $43,606, or 24% from the FY 2024-25 adopted budget, primarily due to higher Personnel costs, including the addition of standby pay. Additionally, Contractual Services costs rose as a result of transferring Corporation Yard cleaning expenses from the Town Center to the appropriate program.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Allocations In $ 119,337 $ 146,797 $ 142,482 $ 181,682 $ 179,249 $ 225,288 $ 43,606 24% Total Revenues $ 119,337 $ 146,797 $ 142,482 $ 181,682 $ 179,249 $ 225,288 $ 43,606 24% Expenditures
Personnel $ 39,772 $ 59,514 $ 53,210 $ 50,432 $ 75,648 $ 84,169 $ 33,736 67% Contractual Services 29,835 12,035 28,259 25,500 22,347 38,000 12,500 49% Professional Services - - 985 1,000 - 1,000 - 0%
Operations 49,729 69,291 58,662 102,250 49,449 99,619 (2,631) -3% Capital Outlay Spending - 5,744 1,367 2,500 2,851 2,500 - 0% Total Expenditures $ 119,337 $ 146,584 $ 142,482 $ 181,682 $ 150,295 $ 225,288 $ 43,605 24% Corporation Yard Operations Expenditures
119,337 146,584 142,482 150,295 181,682
225,288
Actual Budget
0 100,000
200,000
300,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

134 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Depart
ment Budgets
Vehicle Operations (061-4400)
Budget Summary:

Vehicle Operations is an internal service fund division. Internal Service Fund expenditures are allocated to various departments and accounted for within “Allocations Out.” The Vehicle Operations budget increased by $46,840, or 35% from the FY 2024-25 adopted budget, largely due to increases in personnel costs.

Six-Year Comparison
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal
$ Difference
2024-25
Budget
to 2025-26
% Difference
2024-25
Budget
to 2025-26
Revenues
Allocations In $ 95,468 $ 105,696 $ 94,342 $ 132,086 $ 131,758 $ 178,926 $ 46,840 35% Total Revenues $ 95,468 $ 105,696 $ 94,342 $ 132,086 $ 131,758 $ 178,926 $ 46,840 35% Expenditures
Personnel $ 36,063 $ 44,799 $ 48,707 $ 56,386 $ 84,579 $ 97,165 $ 40,780 72% Contractual Services 1,241 5,332 1,107 5,000 286 5,000 - 0% Operations 33,576 55,565 44,527 70,700 37,809 76,761 6,061 9% Miscellaneous Expenditures 38,075 40,533 37,315 - - - - 0% Total Expenditures $ 108,955 $ 146,230 $ 131,657 $ 132,086 $ 122,674 $ 178,926 $ 46,841 35% Vehicle Operations Expenditures
108,955
146,230 131,657 132,086 122,674
178,926
Actual Budget
0 100,000
200,000
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budget
2024-25
Est. Actual
2025-26
Budget
Proposal

Guide to Five‐
Year CIP

136 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Guide to Five‐Year CIP
Guide to 5-Year CIP
Introduction
The Capital Improvement Program (CIP) identifies the Towns capital investments over a five year term. Itis both a fiscal and strategic device that allows for the planning, scoping, prioritization and monitoring of all capital projects. The document quantifies and defines costs, funding sources, departmental responsibilities, project phases and timing. Each year the CIP is reviewed and updated as part of the Citywide financial planning and goalsetting process. At the same time, it sets a vision for longterm planning. Itis also valuable as a community outreach and communications tool as it speaks to major tax dollar investments that are placed in direct and very visible Citywide infrastructure improvements. Such projects involve larger dollar expenditures that normally have a long useful life cycle.

The CIP includes five years of projected capital needs, the first year of which will be appropriated within the annual budget process. Dollars in the first year of the fiveyear CIP will be authorized for spending in the project planning, bidding and award process. The remaining four years of the CIP serve as a proposed financial plan subject to annual review.

How this Document is Organized
The CIP is broken down into three major sections. The first section is a highlevel overview that describes projects from a variety of informational perspectives. In this section, projects are presented by year, by category and by funding source.

Guide to The Five-Year CIP
The second section provides a detailed description for each capital project within an improvement area or category.

These categories are designed to emphasize the particular infrastructure needs of the Town of Los Altos Hills.

General Capital (041): Accounts for general capital projects including parks and open space improvements, technology purchases, and other infrastructure needs. The main source of revenue comes from the General Fund and special grants, if available.

Pathways (042): Includes updating the pathway system investments. The main sources of revenues are pathway construction fees assessed on site developments and grants. With City Council authorization, General Fund may subsidize any funding gaps. The Pathways Committee, in coordination with Staff, identify and address gaps in the existing pathway system.

Westwind Barn Capital (043): Accounts for facility improvements at Westwind Community Barn. The main source of revenue is Verizon Cell Tower site rental fees. As part of the Westwind Barn Concessionaire agreement, the contracted Barn Management, VDE, prepared a preliminary fiveyear improvement plan.

Drainage Capital (045): Accounts for drainage improvements on Towns right-of-ways and easements. The main sources of revenues are pathway construction fees assessed on site developments and grants. Annual maintenance program is completed in conjunction with the Annual Pavement Rehabilitation program.

Street Capital (046): Accounts for street paving and rehabilitation related capital expenditures. The main sources of revenues are State of California gas tax revenues, encroachment fees, grants and General Fund.

The goal of the program is to maintain the Towns pavement condition index at 80 and above.

Sewer Capital (048): Is part of the Sewer Fund and accounts for sewer system replacements and improvements.

The program is fully supported by sewer fees and charges.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 137 Guide to Five‐Year CIP
Each of the project descriptions within the various service areas display projected costs for each of the next five years including the proposed allocation for FY 202324, planned costs for the following four years, a brief description of each project, the identified area of priority/benefit and a brief commentary of the status of ongoing and current expenditures. For projects where the operational cost impact is known, this information is also included in the description. Inflationary factors are also included where appropriate.

CIP Revenue Sources
How CIP Projects Are Financed
When it comes to CIP projects, many cities like the Town of Los Altos Hills, have had to develop a series of internal and external funding mechanisms. This is because local government resources are limited in nature. Many funding sources are restricted in use and subject to discretionary State subventions. Furthermore, local government revenues are highly sensitive to economic movement and prospects for increases are few and far between.

Wherever possible, the Town seeks out external funding sources. These sources, which are restricted to specific application areas, are defined below:

Restricted Revenue Funds
Roadways & Traffic
> Gas Tax Financing is provided by the City’s share of the State tax on gasoline, which can only be used for the research, planning, construction, improvement, maintenance, and operation of public streets and highways or public mass transit corridors.
> Transportation Grants Grant funding from State and Federal sources that can only be used for transportation improvement projects in the Towns right-of-ways. Grants of this type in the Silicon Valley have originated from such agencies as the Valley Transit Authority, Federal Stimulus Funds, and the Metropolitan Transit Commission, among others.
> State Traffic Development Act Funds The Transportation Development Act (TDA) provides two major sources of funding for public transportation: the Local Transportation Fund (LTF) and the State Transit Assistance fund (STA). These funds are for the development and support of public transportation needs that exist in California and are allocated to areas of each County based on population, taxable sales and transit performance. The allocation of these funds is discretionary at the State level.

Community Facilities
> ParkInLieu Fees Funding for open space and parks and recreation facilities can be derived from State and Federal grants and/or mostly developer fees. Developer fees in this area, referred to as Parkinlieu Fees (PIL), are generated based on the growth in the number of livable housing units and can be applied to the acquisition, design, construction or repair of parks and recreation properties and facilities.

Enterprise Funds
> Wastewater Funding from the services rendered on a user surcharge basis to residents located in Los Altos Hills. These revenues also support operation and maintenance of the utility systems. The capital portion is used for underground pipelines, diversion systems, pump stations and distribution channels.

CIP project costs in this area are supported by a multiyear Master Plan for this substantial utility system.

(This Page Intentionally Left Blank)

Capital
Improvement
Plan Summary
and Funding
Sources

Capital Improvement Plan Summary and Funding Sources
140 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan

PROPOSED CAPITAL IMPROVEMENT PROGRAM SUMMARY
FY 2025-2026 through FY 2029-2030
Division Project # Project Name Funding Sources Remaining Budget 2025/26 Budget 2026/27 Budget 2027/28 Budget 2028/29 Budget 2029/30 Budget Total Infrastructure
419300 BROADBAND
INFRASTRUCTURE CIP/ General Fund $ 759,624 $ 0 $ 0 $ 0 $ 0 $ 0 $ 759,624 TR4169-26 BYRNE PRESERVE
RESTORATION CIP/ General Fund $ 57,754 $ 101,310 $ 104,349 $ 0 $ 0 $ 0 $ 263,413 410209-26 CABLE SERVICE COST
SHARING PROGRAM CIP/ General Fund $ 0 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 410234 CORPORATION YARD
IMPROVEMENTS CIP/ General Fund $ 96,548 $ 0 $ 0 $ 0 $ 0 $ 0 $ 96,548 410230 CORPORATION YARD LOCKER
ROOM CIP/ General Fund $ 313,152 $ 0 $ 0 $ 0 $ 0 $ 0 $ 313,152 410216

EL MONTE FIRE STATION

UNDERGROUNDING PROJECT
(RULE 20A) Rule 20A $ 974,192 $ 0 $ 0 $ 0 $ 0 $ 0 $ 974,192 410224 HERITAGE HOUSE UPGRADE CIP/ General Fund $ 553,855 $ 0 $ 0 $ 0 $ 0 $ 0 $ 553,855 410220 HOUSING ELEMENT CIP/ General Fund $ 614,776 $ 53,000 $ 0 $ 0 $ 0 $ 0 $ 667,776 410227-26 MISCELLANEOUS
TECHNOLOGY CIP/ General Fund $ 13,730 $ 80,000 $ 50,000 $ 50,000 $ 0 $ 0 $ 193,730

NEW PARKS AND RECREATION
CENTER RENOVATION (NEW) CIP/ General Fund $ 0 $ 200,000 $ 1,300,000 $ 0 $ 0 $ 0 $ 1,500,000 410225

PURISSIMA PARK

IMPROVEMENT PROGRAM
(FIELD & FACILITY
IMPROVEMENTS) CIP/ General Fund $ 81,379 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 0 $ 201,379

NEW ROAD SAFETY AND TRAFFIC
CALMING CIP/ General Fund $ 0 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 300,000 410235 SECURITY CAMERA UPGRADE CIP/ General Fund $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 0 $ 0 $ 400,000 410226 STREET SIGN REPLACEMENT CIP/ General Fund $ 15,375 $ 25,000 $ 25,000 $ 25,000 $ 0 $ 0 $ 90,375 410236 TOWN FACILITIES ENERGY
EFFICIENCY (NEW) CIP/ General Fund $ 60,000 $ 150,000 $ 0 $ 0 $ 0 $ 0 $ 210,000 410233 TRAFFIC SIGNAL
IMPROVEMENTS CIP/ General Fund $ 30,821 $ 20,000 $ 0 $ 0 $ 0 $ 0 $ 50,821 410228 WATER WELL AT PURISSIMA
PARK CIP/ General Fund $ 35,013 $ 200,000 $ 0 $ 0 $ 0 $ 0 $ 235,013 Infrastructure
Total $ 3,706,219 $ 1,069,310 $ 1,719,349 $ 315,000 $ 140,000 $ 110,000 $ 7,059,878 Pathways
NEW

MAGDALENA AVENUE
PATHWAY (NEW) Pathway Fund $ 315,000 $ 315,000
NEW

MAPLE LEAF - MIDDLE FORK
LANE PATHWAY (NEW) Pathway Fund $ 100,000 $ 150,000 $ 250,000 427913-26 MISCELLANEOUS PATHWAYS TDA $ 45,136 $ 0 $ 0 $ 0 $ 0 $ 0 $ 45,136 Pathway Fund $ 0 $ 50,000 $ 0 $ 100,000 $ 100,000 $ 100,000 $ 350,000

Capital Improvement Plan Summary and Funding Sources
141
Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan

PROPOSED CAPITAL IMPROVEMENT PROGRAM SUMMARY
FY 2025-2026 through FY 2029-2030
Division Project # Project Name Funding Sources Remaining Budget 2025/26 Budget 2026/27 Budget 2027/28 Budget 2028/29 Budget 2029/30 Budget Total 427902 SUMMERHILL PATHWAY Pathway Fund $ 379,018 $ 100,000 $ 0 $ 0 $ 0 $ 0 $ 479,018 Pathways Total $ 424,154 $ 565,000 $ 150,000 $ 100,000 $ 100,000 $ 100,000 $ 1,439,154 Road Rehabilitation
467226-26

ANNUAL ROAD

REHABILITATION PROGRAM
Vehicle Registration
Fees SB 83 $ 0 $ 66,500 $ 69,800 $ 73,300 $ 77,000 $ 80,900 $ 367,500 Street Encroachment
Fees $ 107,100 $ 112,500 $ 118,100 $ 124,000 $ 130,200 $ 591,900 SB1 Funds $ 0 $ 222,383 $ 233,500 $ 245,200 $ 257,500 $ 270,400 $ 1,228,983 Measure B $ 0 $ 254,596 $ 214,158 $ 224,900 $ 236,100 $ 247,900 $ 1,177,654 Gas Tax $ 0 $ 243,309 $ 255,500 $ 268,300 $ 281,700 $ 295,800 $ 1,344,609 Drainage in-lieu $ 0 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 200,000 CIP/ General Fund $ 111,212 $ 441,112 $ 449,542 $ 405,200 $ 358,700 $ 334,800 $ 2,100,566 NEW

LOCAL ROAD SAFETY PLAN
(NEW) Other -TBD $ 0 $ 60,000 $ 0 $ 0 $ 0 $ 0 $ 60,000
CIP/ General Fund $ 0 $ 20,000 $ 0 $ 0 $ 0 $ 0 $ 20,000 467228

MEASURE B BIKE/

PEDESTRIAN EDUCATION &
ENCOURAGEMENT PROGRAM Measure B $ 73,206 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 123,206 Road Rehabilitation Total $ 184,417 $ 1,465,000 $ 1,385,000 $ 1,385,000 $ 1,385,000 $ 1,410,000 $ 7,214,417 Sewer
487918-26

ANNUAL SANITARY SEWER
REPLACEMENT AND REHAB Sewer User Charges $ 465,579 $ 900,000 $ 1,150,000 $ 1,050,000 $ 1,050,000 $ 0 $ 4,615,579 Sewer Total $ 465,579 $ 900,000 $ 1,150,000 $ 1,050,000 $ 1,050,000 $ 4,615,579 Storm Drain
467209 MATADERO CREEK EROSION Drainage in-lieu $ 458,124 $ 0 $ 0 $ 0 $ 0 $ 0 $ 458,124 CIP/ General Fund $ 514,500 $ 514,500
457202

STORM DRAIN
IMPROVEMENTS Drainage in-lieu $ 77,842 $ 0 $ 0 $ 0 $ 0 $ 0 $ 77,842 Storm Drain Total $ 1,050,465 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,050,465 Vehicle and Equipment
NEW

VEHICLE AND EQUIPMENT
REPLACEMENT (NEW) CIP/ General Fund $ 0 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Vehicle and Equipment Total $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Westwind Community Barn
437307-26

WESTWIND COMMUNITY
BARN IMPROVEMENTS Westwind Barn Capital $ 240,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 240,000 CIP/ General Fund $ 50,000 $ 50,000
Cell Tower Rental $ 54,354 $ 50,000 $ 50,000 $ 50,000 $ 0 $ 0 $ 204,354 Westwind Community Barn Total $ 344,354 $ 50,000 $ 50,000 $ 50,000 $ 0 $ 0 $ 494,354 Grand Total $ 6,175,188 $ 4,149,310 $ 4,554,349 $ 3,000,000 $ 2,775,000 $ 1,720,000 $ 22,373,847

Capital Improvement Plan Summary and Funding Sources
142 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan

CAPITAL IMPROVEMENT PROGRAM FUNDING SOURCE
FY 2025-2026 through FY 2029-2030
Funding Source Remaining Balance as of 3/31/2025 Fiscal Year 2025/26 Budget Fiscal Year 2026/27 Budget Fiscal Year 2027/28 Budget Fiscal Year 2028/29 Budget Fiscal Year 2029/30 Budget Total Project
Funding
CDBG $ - $ - $ - $ - $ - $ - $ -
Cell Tower Rental $ 54,354 $ 50,000 $ 50,000 $ 50,000 $ - $ - $ 204,354 CIP/ General Fund $ 3,407,738 $ 1,630,422 $ 2,268,891 $ 820,200 $ 598,700 $ 544,800 $ 9,270,752 Drainage in-lieu $ 535,965 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 735,965 Gas Tax $ - $ 243,309 $ 255,500 $ 268,300 $ 281,700 $ 295,800 $ 1,344,609 Measure B $ 73,206 $ 264,596 $ 224,158 $ 234,900 $ 246,100 $ 257,900 $ 1,300,859 Other -TBD $ - $ 60,000 $ - $ - $ - $ - $ 60,000
Pathway Fund $ 379,018 $ 565,000 $ 150,000 $ 100,000 $ 100,000 $ 100,000 $ 1,394,018 Rule 20A $ 974,192 $ - $ - $ - $ - $ - $ 974,192
SB1 Funds $ - $ 222,383 $ 233,500 $ 245,200 $ 257,500 $ 270,400 $ 1,228,983 Sewer User Charges $ 465,579 $ 900,000 $ 1,150,000 $ 1,050,000 $ 1,050,000 $ - $ 4,615,579 Street Encroachment Fees $ - $ 107,100 $ 112,500 $ 118,100 $ 124,000 $ 130,200 $ 591,900 TDA $ 45,136 $ - $ - $ - $ - $ - $ 45,136
Vehicle Registration Fees SB 83 $ - $ 66,500 $ 69,800 $ 73,300 $ 77,000 $ 80,900 $ 367,500 Westwind Barn Capital $ 240,000 $ - $ - $ - $ - $ - $ 240,000 Grand Total $ 6,175,188 $ 4,149,310 $ 4,554,349 $ 3,000,000 $ 2,775,000 $ 1,720,000 $ 22,373,847

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 143 Capital Improve
ment Plan Summary and Funding Sources

BROADBAND INFRASTRUCTURE
Department: Public Works
Program: Infrastructure
Project Number: 419300
Initial funding year: FY 2022-23
Planned start date: July 2022
Estimated completion date: Q2 FY2025/26
Project Description
The Town applied for the American Rescue Plan Act funds (ARPA) in March 2021 and received $1,007,480 on July 13, 2021. The same amount was received in 2022. At the February 17, 2022 City Council meeting, a resolution was passed to designate a portion of the ARPA funds to create a broadband master plan and to install broadband in areas of Los Altos Hills.

Project Status
The Broadband Feasibility Study was completed in 2023.

In April 2024, the City Council directed staff to work with the Technology Committee to find an eligible broadband infrastructure expenditure using ARPA funds. On May 21, 2024, the City Council authorized staff to negotiate an agreement with Los Altos Hills Community Fiber (LAHCF) to install underground fiber at priority Town sites. Working with the Technology Committee and LAHCF, a funding agreement was negotiated for underground fiber installation at priority sites that include along Fremont Road (near Town Hall) and at La Loma Drive/Prospect Avenue/Stonebrook Drive to the CERT emergency services facility (ARK) located at Foothill college. The funding agreement was approved by Council on October 22, 2024, and the term expires end of 2025.

LAHCF is working separately with Foothill College to install a broadband infrastructure connection between Foothill College and O’Keefe Road through El Monte Road under Highway 280. This work is proposed to be funded by Foothill College.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Broadband Infrastructure $ 813,105 $ 40,376 $ 772,729 $ 13,105 $ 759,624 Total: $ 813,105 $ 40,376 $ 772,729 $ 13,105 $ 759,624
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
CIP/ General Fund $ 759,624 $ 759,624
Total Funding: $ 759,624 $ - $ - $ - $ - $ - $ 759,624
Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Broadband Infrastructure $ -
Total Spending: $ - $ - $ - $ - $ - $ - $ -
Recurring annual maintenance and operating costs, if applicable Maintenance and operational needs would be determined through the feasibility study.

144 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources

BYRNE PRESERVE RESTORATION
Department: Public Works
Program: Infrastructure
Project Number: TR4169-26
Initial funding year: FY 2022-23
Planned start date: July 2022
Estimated completion date: June 2027
Project Description
Since 2013, the Town facilitated a stewardship program and public outreach activities for Byrne Preserve, with the goal of preserving Town assets and building community value that protects and enhances our environment. Grassroots Ecology has been the primary vendor at Byrne Preserve, providing habitat restoration activities along Moody Creek, removal of invasive plants, replanting native vegetation, monitoring plant establishment, and replanting as necessary. Grassroots Ecology has also organized volunteer and educational events related to the preservation of open space.

Grassroots Ecology was selected to continue providing services at Byrne Preserves for three years starting in July 2022.

Project Status
With the three-year contract expiring end of FY2024/25, the Town has negotiated a two-year extension for Grassroots Ecology to continue their services until June 30, 2027.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Byrne Preserve Restoration $ 289,575 $ 231,821 $ 57,754 $ 57,754 Total: $ 289,575 $ 231,821 $ 57,754 $ - $ 57,754
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
CIP/ General Fund $ 57,754 $ 101,310 $ 104,349 $ 263,413 Total Funding: $ 57,754 $ 101,310 $ 104,349 $ - $ - $ - $ 263,413 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Byrne Preserve Restoration $ 74,381 $ 101,310 $ 104,349 $ 280,040 Total Spending: $ 74,381 $ 101,310 $ 104,349 $ - $ - $ - $ 280,040 Recurring annual maintenance and operating costs, if applicable The purpose of this program is to remove invasive non-native plants and allow native plants to grow naturally. There is no ongoing maintenance necessary once the native plants have matured.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 145 Capital Improve
ment Plan Summary and Funding Sources

CABLE SERVICE COST SHARING PROGRAM
Department: City Manager’s Office
Program: Infrastructure
Project Number: 410209-26
Initial funding year: FY 2022-23
Planned start date: July 2024
Estimated completion date: Ongoing program
Project Description
The City Council believes that it is in the public’s interest to have adequate cable services available to all residents for better access to public safety information, more opportunity for civic engagement, and enhancing education and digital literacy. The purpose of this cost sharing program is to establish a means by which the Town can provide limited financial support for the construction of broadband/cable system equipment within public ways. In August 2016, the City Council approved and adopted Cost Sharing Policy for the Construction of Comcast Cable System Infrastructure Within Public Ways, where the Town will contribute 25% of the cable expansion cost, with a cap of $25,000.

Project Status
In March of 2025 the City Council increased eligibility of this program to cover costs of any internet service provider installing any broadband/cable system equipment in the public right of way (no longer just Comcast). There are no current applications for cost sharing.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Cable Service Expansion $ 50,000 $ 50,000 $ 50,000 $ -
Total: $ 50,000 $ - $ 50,000 $ 50,000 $ -
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
CIP/ General Fund $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Total Funding: $ - $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Cable Service Expansion $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Total Spending: $ - $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Recurring annual maintenance and operating costs, if applicable Maintenance and operational needs would be determined during the design phase.

146 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources

CORPORATION YARD IMPROVEMENTS
Department: Public Works
Program: Infrastructure
Project Number: 410234
Initial funding year: FY 2024-25
Planned start date: Summer 2024
Estimated completion date: Q2 FY2026/27
Project Description
In the summer of 2024, the Corporation Yard Master Plan Study was completed. This project would fund priority improvements recommended in the study, including the purchase and installation of Conex containers for additional on-site storage, garage door repairs/upgrades, seal coating of the yard pavement, installation of electric vehicle charging stations, and implementation of a backup power system.

Project Status
One Conex container has been purchased and installed in March 2025. The garage door repairs/upgrades anticipated by fall 2025 with a cost estimate of around $25,000. Staff started investigating options for the electric vehicle charging stations.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Improvements $ 100,000 $ 3,452 $ 96,548 $ - $ 96,548
Total: $ 100,000 $ 3,452 $ 96,548 $ - $ 96,548
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
CIP/ General Fund $ 96,548 $ - $ - $ - $ - $ - $ 96,548 Total Funding: $ 96,548 $ - $ - $ - $ - $ - $ 96,548
Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Improvements $ 96,548 $ - $ - $ - $ - $ - $ 96,548
Total Spending: $ 96,548 $ - $ - $ - $ - $ - $ 96,548
Recurring annual maintenance and operating costs, if applicable Maintenance and operational needs would be determined during design and construction phases.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 147 Capital Improve
ment Plan Summary and Funding Sources

CORPORATION YARD LOCKER ROOM
Department: Public Works
Program: Infrastructure
Project Number: 410230
Initial funding year: FY 2023-24
Planned start date: Summer 2023
Estimated completion date: Q2 FY2025/26
Project Description
In 2022, staff recommended improvements to the Corporation Yard Building to add a locker room with shower and restroom facilities.

The Town’s maintenance members currently use an office space as a locker room to store their safety gear and personal items, and a single unisex restroom is shared. The project is to ensure that maintenance staff have adequate locker room facilities. The Corporation Yard Master Plan Study, completed in July 2024, identified the locker room as a priority project for the facility.

Due to the fire protection/sprinkler requirements for the full locker room on the second floor, the project has been phased. In December 2024, Council approved the conceptual plans for the Corporation Yard Locker Room Project - Phase I involving a new accessible unisex restroom with a shower and lockers on the first floor and a new HVAC system for the building. The future phase would include converting an office space on the second floor into a locker room adequate for the maintenance staff, as well as installing a new fire sprinkler system for the building. which would require a separate fire water line from Purissima Hills Water District.

Project Status
Phase I construction is anticipated to start in summer 2025.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Locker Corp Yard $ 340,000 $ 26,848 $ 313,152 $ - $ 313,152 Total: $ 340,000 $ 26,848 $ 313,152 $ - $ 313,152
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
CIP/ General Fund $ 313,152 $ - $ - $ - $ - $ - $ 313,152 Total Funding: $ 313,152 $ - $ - $ - $ - $ - $ 313,152
Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Locker Corp Yard $ 313,152 $ - $ - $ - $ - $ - $ 313,152 Total Spending: $ 313,152 $ - $ - $ - $ - $ - $ 313,152 Recurring annual maintenance and operating costs, if applicable A minor increase to the janitorial services contract.

148 Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources
EL MONTE FIRE STATION UNDERGROUNDING PROJECT (RULE 20A) Department: Public Works
Program: Infrastructure
Project Number: 410216
Initial funding year: FY 2019-20
Planned start date: October 2020
Estimated completion date: Q2 FY2025/26
Project Description
The California Public Utilities Commission (CPUC) Rule 20A underground program allows cities and counties to utilize Rule 20A credits (funded by PG&E ratepayers) to finance utility undergrounding projects at locally designated underground districts. The Town has currently $4,656,261 in Rule 20A credit allocation.

The Town has identified the emergency routes near El Monte Fire Station (El Monte Road, Elena Road, and Moody Road) as the underground district area. In October 2020, the Town hired Bellecci & Associates to prepare the undergrounding composite plans and assist with coordination with PG&E and other utility companies. In March 2023, PG&E assigned an estimating team to the Town’s project. The plans, specifications, and estimates (Form B) for the project were completed in April 2024 and approved by the participating utility companies (PG&E, AT&T, and Comcast).

The Town would initially cover the project costs, to be reimbursed through its Rule 20A credit balance and other utility undergrounding programs.

Project Status
The project was advertised for bid in April 2024 and bids were received in May 2024. Joint trench construction started August 2024 and was completed by February 2025. Overhead to underground conversion work by utility companies is anticipated to be completed by fall 2025.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
CIP/General Fund $ 300,000 $ 300,000 $ - $ -
Rule 20A credits 4,656,261 3,682,069 974,192 974,192
Total: $ 4,956,261 $ 3,982,069 $ 974,192 $ - $ 974,192
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Rule 20A $ 974,192 $ - $ - $ - $ - $ - $ 974,192
Total Funding: $ 974,192 $ - $ - $ - $ - $ - $ 974,192
Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Rule 20A expenditures $ 974,192 $ - $ - $ - $ - $ - $ 974,192 Total Spending: $ 974,192 $ - $ - $ - $ - $ - $ 974,192 Recurring annual maintenance and operating costs, if applicable No maintenance and operating cost applicable.

Town of Los Altos Hills | FY 2024-26 Operating Budget and FY 2025-2029 Five Year Capital Improvement Plan 149 Capital Improve
ment Plan Summary and Funding Sources

HERITAGE HOUSE UPGRADE
Department: Public Works
Program: Infrastructure
Project Number: 410224
Initial funding year: FY 2021-22
Planned start date: February 2023
Estimated completion date: Q1 FY2025/26
Project Description
The renovation of the Heritage House interior aims to better accommodate various users, including the community, volunteers, and staff who utilize the space. The renovations will ensure protection of historically significant elements of the house while complying with ADA and Building Code provisions. Having already extended a data line from Town Hall to the Heritage House, this CIP will further extend that line throughout the house and provide Wi-Fi service with a direct Ethernet cable connection from the IT room.

Project Status
The Town received $400,000 in Community Development Block Grant (CDBG) funding from the U.S. Department of Housing and Urban Development (HUD) through the County Office of Supportive Housing in May of 2024. CDBG funds were approved soley for ADA access improvements to the Heritage House.

The Heritage House Upgrade project begun construction in December 2024 and is expected to be completed by fall 2025. The Town has invoiced the full $400,000 grant amount for CDBG by April 2025, meeting the grant program deadline. The County will retain ten percent of the amount until the completion of the project and when the first annual program report is received by HUD.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Heritage House Upgrade $ 1,270,000 $ 716,145 $ 553,855 $ 553,855 Total: $ 1,270,000 $ 716,145 $ 553,855 $ - $ 553,855
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
CIP/ General Fund $ 553,855 $ - $ - $ - $ - $ - $ 553,855

CDBG - -
Total Funding: $ 553,855 $ - $ - $ - $ - $ - $ 553,855
Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Heritage House Upgrade $ 553,855 $ - $ - $ - $ - $ - $ 553,855 Total Spending: $ 553,855 $ - $ - $ - $ - $ - $ 553,855 Recurring annual maintenance and operating costs, if applicable Additional costs for custodian service, routine maintenance, and utilities anticipated with more active use of the facility.