Los Altos Hills City Council
June 18, 2025

48 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
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 414,154 391,129 665,597 589,000 696,291 705,500 116,500 20% 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 1,595,567 955,186 (171,814) -15% 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 1,036,800 802,312 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 3,711,885 3,407,530 (304,355) -8% Total Revenues $ 15,026,463 $ 14,949,242 $ 16,959,479 $ 17,691,367 $ 17,612,520 $ 18,481,207 789,839 $ 4% Expenditures
Personnel $ 3,753,452 $ 3,948,097 $ 4,269,910 $ 4,900,238 $ 4,404,724 $ 5,518,513 618,278 $ 13% Contractual Services 4,209,624 4,747,417 5,871,804 6,509,654 5,623,450 6,018,859 (490,795) -8% 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 1,671,737 (11,763) -1% 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 4,146,047 4,364,056 64,085 1% Total Expenditures $ 12,785,738 $ 13,688,594 $ 15,223,073 $ 18,076,915 $ 16,183,073 $ 18,162,369 85,454 $ 0% Operating Surplus/(Deficit) $ 2,240,725 $ 1,260,648 $ 1,736,406 $ (385,548) $ 1,429,447 318,837 $ 704,385 -183% Transfers In/(Out)
Transfers In (638,923) - (177,488) (38,976) 903,299 - (38,976) 0% Transfers Out 1,756,479 2,585,871 1,725,369 1,897,362 (2,598,814) (1,513,070) (384,292) -20% Total Transfers In/(Out) $ (1,117,556) $ (2,585,871) $ (1,547,881) $ (1,858,386) $ (1,695,515) $ (1,513,070) $ 345,316 -19% Change in Fund Balance $ 1,123,169 $ (1,325,223) $ 188,525 $ (2,243,934) $ (266,068) $ (1,194,233) $ 1,049,701 -47% Fund Balance
Beginning 16,960,479 18,083,648 16,758,425 16,945,885 16,945,885 16,679,817 (266,068) -2% Ending Fund Balance $ 18,083,648 $ 16,758,425 $ 16,945,885 $ 14,701,951 $ 16,679,817 $ 15,485,584 $ 783,633 5%

49 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
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 1,228,422 1,426,106 54,377 4% Total Revenues $ 794,605 $ 1,014,915 $ 922,594 $ 1,371,729 $ 1,228,422 $ 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 $ 2 - $ (105,800) -100% Transfers In/(Out)
Transfers In
Transfers Out
Total Transfers In/(Out) $ - $ - $ - $ - $ - $ - $ - 0%

50 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
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 $ - $ 351,516 $ 166,116 166,116 $ 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 3,719,000 4,105,898 390,018 10% Total Revenues $ 3,125,692 $ 3,387,759 $ 3,873,080 $ 3,841,540 $ 4,291,383 $ 4,401,444 559,904 $ 15% Expenditures
Personnel $ 67,090 $ 353,709 $ 280,727 $ 309,808 $ 461,311 $ 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 270,358 289,555 280,939 320,073 348,441 469,578 149,505 47% Total Expenditures $ 2,645,210 $ 2,926,890 $ 3,264,000 $ 4,715,103 $ 4,381,111 $ 5,133,062 417,960 $ 9% Operating Surplus/(Deficit) $ 480,482 $ 460,869 $ 609,080 $ (873,563) $ (89,727) $ (731,619) 141,944 $ -16% Transfers In/(Out)
Transfers In (9,300) (1,179,650) (9,858) (900,000) 910,452 910,976 10,976 1% Transfers Out - 1,170,350 - 900,000 (900,000) (900,000) - 0% Total Transfers In/(Out) $ (9,300) $ (9,300) $ (9,858) $ - $ 10,452 $ 10,976 $ 10,976 $ 0

51 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Department Spending
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 $ 2,519,074 $ 211,732 9% Finance & Administrative Services 1,336,110 1,201,792 1,399,051 1,446,307 1,518,605 1,616,028 169,720 12% Public Safety 2,131,840 2,342,287 3,630,942 3,695,061 3,633,097 4,073,524 378,461 10% Community Development 3,746,154 3,613,076 4,193,926 5,243,641 4,368,989 4,919,808 (323,832) -6% Community Services 1,261,794 1,494,969 1,481,576 1,833,728 1,474,574 1,452,365 (381,366) -21% Public Works 2,416,467 2,835,134 2,783,512 3,550,836 3,199,794 3,574,951 24,119 1% Non-Departmental 280,066 118,698 - - 1,267 6,620 6,620 0% Total General Fund $ 12,785,738 $ 13,688,594 $ 15,223,073 $ 18,076,915 $ 16,183,073 $ 18,162,369 $ 85,454 0% Special Revenue Funds
General Administration $ 301,999 $ 25,000 $ - $ - $ - $ - $ - 0% Public Safety 168,255 362,687 8,671 - 2,100 - - 0%
Capital Projects 55,123 633,062 266,551 - 2,091 - - 0%
Total Special Revenue Funds $ 525,377 $ 1,020,749 $ 275,222 $ - $ 4,191 $ - $ - 0% Capital Project Funds
Capital Projects $ 3,008,402 $ 3,415,032 $ 3,331,348 $ 4,384,226 $ 7,511,970 $ 3,249,310 $ (1,134,916) -26% Total Capital Project Funds $ 3,008,402 $ 3,415,032 $ 3,331,348 $ 4,384,226 $ 7,511,970 $ 3,249,310 $ (1,134,916) -26% Enterprise Funds
Public Works $ 2,641,881 $ 2,926,890 $ 3,263,894 $ 3,815,103 $ 3,872,591 $ 4,226,442 $ 411,340 11% Capital Projects - - - 900,000 508,520 906,620 6,620 1% Non-Departmental 3,329 - 107 - - - - 0%
Total Enterprise Funds $ 2,645,210 $ 2,926,890 $ 3,264,000 $ 4,715,103 $ 4,381,111 $ 5,133,062 $ 417,960 9% Internal Service Funds
Finance & Administrative Services $ 710,439 $ 708,519 $ 695,264 $ 952,161 $ 955,450 $ 1,021,892 $ 69,730 7% General Administration 4,179 4,179 4,179 - - - - 0%
Public Works 228,292 292,814 274,140 313,768 272,970 404,214 90,446 29% Total Internal Service Funds $ 942,910 $ 1,005,512 $ 973,582 $ 1,265,929 $ 1,228,420 $ 1,426,106 $ 160,176 13% Total All Funds $ 19,907,637 $ 22,056,776 $ 23,067,225 $ 28,442,172 $ 29,308,765 $ 27,970,848 $ (471,326) -2%

52 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Personnel Allocations
FY2021/22 FY2022/23 FY2023/24 FY2024/25 FY2025/26
General Administration
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 General Administration 4.0 4.0 4.0 5.0 5.00
Finance & Administrative Services
Accountant 1.0 1.0 1.0 1.0 -
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 1.0 1.0 1.0 1.0 2.00
Total Finance & Administrative Services 4.0 4.0 4.0 4.0 4.00 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 -
Assistant Planner 1.0 1.0 1.0 - 2.00
Associate Planner - - - 1.0 1.00
Building Inspector 1.0 1.0 1.0 - -
Building / Planning Technician 1.0 1.0 1.0 1.0 2.00
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 9.00
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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 53 Financial and Personnel Allocation Summaries
Personnel Allocations (continued)
FY2021/22 FY2022/23 FY2023/24 FY2024/25 FY2025/26
Public Works
Assistant Engineer 2.0 2.0 2.0 2.0 2.00
Associate Engineer 1.0 1.0 1.0 1.0 -
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
Project Manager - - - - 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 Public Works 10.0 10.0 10.0 11.0 11.00
Summary
General Administration 4.0 4.0 4.0 5.0 5.00
Finance & Administrative Services 4.0 4.0 4.0 4.0 4.00
Community Development 7.0 8.0 8.0 6.0 9.00
Community Services 2.0 2.0 2.0 1.0 1.00
Public Works 10.0 10.0 10.0 11.0 11.00
Total 27.0 28.0 28.0 27.0 30.00
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 2025-26 Operating Budget and FY 2026-2030 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

Department
Budgets

56 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Depart
ment Budgets
Department Overview
Includes Allocations, Excludes Transfers
Department/Division
2025-26
Budget
Proposal
General Administration
City Council, City Manager, City Attorney, City Clerk, Committees & Commissions $ 2,519,074 Finance & Administrative Services
Finance & Administrative Services, Community Services Grant, Insurance, Fringe Benefits, Town Center 2,637,920 Public Safety
Public Safety, Animal Control, Citizens Public Safety Program 4,073,524 Community Development
Planning Administration, Planning Commission, Code Enforcement Operations, Building Operations 4,919,808 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 4,155,930 Non-Departmental
Non-Departmental 6,620
Total $ 27,970,848

57 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Department Budgets
Department Summary by Program
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 Administration
City Council (1100) $ 188,868 $ 210,988 $ 321,796 $ 449,077 $ 397,206 $ 472,992 $ 23,915 5% City Manager (1200) 519,076 641,497 605,720 976,864 899,699 1,275,081 298,217 31% City Attorney (1500) 435,749 661,111 277,044 340,000 229,288 259,656 (80,344) -24% City Clerk (1300) 189,211 230,163 271,101 279,406 251,577 289,086 9,679 3% Committee & Commissions (1700) 280,404 338,879 258,403 261,994 208,976 222,259 (39,735) -15% Special Donations (0510) 50,000 25,000 - - - - - 0%
Office Equipment (1490) 4,179 4,179 4,179 - - - - 0%
American Rescue Plan (ARP) (1101) 251,999 - - - - - - 0% Total General Administration $ 1,919,484 $ 2,111,817 $ 1,738,244 $ 2,307,341 $ 1,986,746 $ 2,519,074 $ 211,732 9% Finance & Administrative Services
Finance & Administrative Services
(1400) $ 805,243 $ 847,596 $ 970,033 $ 1,004,544 $ 952,199 $ 1,128,599 $ 124,054 12% Town Benefit (1470) - (195,531) (122,702) - 132,368 11,978 11,978 0% Town Center (1480) 710,439 904,050 817,965 952,161 823,082 1,009,914 57,752 6% Insurance (1510) 513,221 253,286 344,334 400,000 511,393 433,924 33,924 8% Community Services Grant (1600) 17,645 100,910 84,684 41,762 55,013 53,505 11,742 28% Total Finance & Administrative
Services $ 2,046,549 $ 1,910,310 $ 2,094,314 $ 2,398,467 $ 2,474,056 $ 2,637,920 $ 239,450 10% Public Safety
Public Safety (2100) $ 2,123,237 $ 2,282,559 $ 3,567,900 $ 3,533,726 $ 3,474,820 $ 3,890,069 $ 356,342 10% Animal Control (2150) 8,603 59,728 63,043 161,335 158,277 183,455 22,119 14% Citizens Public Safety Program (Cops)
(6100) 168,255 362,687 8,671 - 2,100 - - 0%
Total Public Safety $ 2,300,095 $ 2,704,974 $ 3,639,613 $ 3,695,061 $ 3,635,197 $ 4,073,524 $ 378,461 10% Community Development
Planning Administration (3100) $ 1,673,492 $ 1,846,112 $ 1,989,910 $ 2,262,601 $ 2,073,264 $ 2,282,685 $ 20,087 1% Planning Commission (3110) 40,319 92,440 142,861 78,382 78,498 145,587 67,204 86% Code Enforcement Operations (3120) 195,079 173,771 152,386 212,111 166,757 294,583 82,472 39% Building Operations (3200) 1,837,263 1,500,754 1,908,769 2,690,548 2,034,198 2,196,953 (493,595) -18% Permit Review and Inspection (3210) - - - - 16,272 - - 0% Total Community Development $ 3,746,154 $ 3,613,076 $ 4,193,926 $ 5,243,641 $ 4,368,989 $ 4,919,808 $ (323,832) -6% Community Services

58 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Department Budgets
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
Community Services Administration
(1000) $ 687,648 $ 815,623 $ 667,949 $ 909,980 $ 806,098 $ 350,184 $ (559,796) -62% Recreation Programs (4110) 30,189 33,095 31,580 45,820 28,394 18,163 (27,657) -60% Special Events (4120) 125,184 166,817 279,533 262,721 131,360 288,006 25,285 10% Parks (5100) 164,833 198,541 193,129 251,003 200,007 333,006 82,002 33% Westwind Community Barn (5300) 253,941 280,894 309,386 364,205 308,714 463,005 98,800 27% Total Community Services $ 1,261,794 $ 1,494,969 $ 1,481,576 $ 1,833,728 $ 1,474,574 $ 1,452,365 $ (381,366) -21% Public Works
Engineering (3300) $ 978,883 $ 976,545 $ 1,106,189 $ 1,394,527 $ 1,278,934 $ 1,023,013 $ (371,513) -27% Sewer Operations (4800) 2,641,881 2,926,890 3,263,894 3,815,103 3,872,591 4,226,442 411,340 11% Storm Drain Operations (4500) 302,076 554,327 390,021 504,509 440,087 567,122 62,616 12% Street Operations (4600) 574,923 664,043 633,394 837,652 716,567 909,337 71,685 9% Pathway Operations (4740) 560,586 640,220 653,909 814,148 764,206 1,075,479 261,331 32% Corporation Yard Operations (4300) 119,337 146,584 142,482 181,682 150,295 225,288 43,605 24% Vehicle Operations (4400) 108,955 146,230 131,657 132,086 122,674 178,926 46,841 35% Total Public Works $ 5,286,640 $ 6,054,838 $ 6,321,546 $ 7,679,707 $ 7,345,354 $ 8,205,607 $ 525,905 7% Capital Projects
Sewer CIP (6900) $ - $ - $ - $ 900,000 $ 508,520 $ 906,620 $ 6,620 1% Equipment Replacement (6910) 27,068 13,217 36,414 - 174,539 100,000 100,000 0% Capital Projects (6900) 3,036,458 4,034,878 3,561,485 4,384,226 7,339,522 3,149,310 (1,234,916) -28% Total Capital Projects $ 3,063,525 $ 4,048,095 $ 3,597,899 $ 5,284,226 $ 8,022,581 $ 4,155,930 $ (1,128,296) -21% Non-Departmental
Non-Departmental (0000) $ 283,395 $ 118,698 $ 107 $ - $ 1,267 $ 6,620 $ 6,620 0% Total Non-Departmental $ 283,395 $ 118,698 $ 107 $ - $ 1,267 $ 6,620 $ 6,620 0% Total Expenditures $ 19,907,637 $ 22,056,776 $ 23,067,225 $ 28,442,172 $ 29,308,765 $ 27,970,848 $ (471,326) -2%

59 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Department Budgets
Department Summary by Category
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 Administration
Personnel $ 865,193 $ 937,515 $ 1,020,141 $ 980,491 $ 1,110,913 $ 1,280,560 $ 300,068 31% Contractual Services 362,714 722,789 305,211 505,000 187,487 446,500 (58,500) -12% Professional Services 238,479 209,501 203,407 271,200 239,717 241,856 (29,344) -11% Operations 427,054 237,833 205,306 318,650 266,629 308,158 (10,492) -3% Capital Outlay Spending - - - - - - - 0%
Miscellaneous Expenditures 26,044 4,179 4,179 232,000 182,000 242,000 10,000 4% Total General Administration $ 1,919,484 $ 2,111,817 $ 1,738,244 $ 2,307,341 $ 1,986,746 $ 2,519,074 $ 211,732 9% Finance & Administrative Services
Personnel $ 638,604 $ 605,762 $ 418,499 $ 950,934 $ 900,063 $ 1,085,462 $ 134,526 14% Contractual Services 194,689 325,277 588,760 325,500 491,725 366,400 40,900 13% Professional Services 215,519 159,157 296,383 270,700 248,073 124,448 (146,252) -54% Operations 865,762 688,074 657,345 718,970 832,514 917,504 198,534 28% Capital Outlay Spending - 29 1,239 130,638 - 130,638 - 0% Miscellaneous Expenditures 130,638 130,638 130,638 - - - - 0% Allocations Out 1,338 1,374 1,450 1,726 1,680 13,468 11,742 680% Total Finance & Administrative
Services $ 2,046,549 $ 1,910,310 $ 2,094,314 $ 2,398,467 $ 2,474,056 $ 2,637,920 $ 239,450 10% Public Safety
Personnel $ 1,042 $ 1,082 $ 1,405 $ 4,605 $ 1,034 $ - $ (4,605) 0% Contractual Services 2,024,501 2,514,498 3,457,694 3,463,796 3,422,521 3,524,766 60,970 2% Operations 119,254 15,053 11,351 10,000 9,856 13,324 3,324 33% Allocations Out 155,298 174,340 169,162 216,660 201,787 535,434 318,772 147% Total Public Safety $ 2,300,095 $ 2,704,974 $ 3,639,613 $ 3,695,061 $ 3,635,197 $ 4,073,524 $ 378,461 10% Community Development
Personnel $ 1,059,560 $ 999,238 $ 1,257,747 $ 1,311,040 $ 1,201,697 $ 1,591,163 $ 280,125 21% Contractual Services 1,291,930 1,074,197 1,275,085 1,687,558 1,211,163 1,271,373 (416,185) -25% Professional Services 16,729 9,075 30,059 50,655 27,945 13,700 (36,955) -73% Operations 50,209 119,301 139,342 420,178 229,890 299,002 (121,177) -29% Capital Outlay Spending 232 - - 2,000 - - (2,000) 0%
Allocations Out 1,327,493 1,411,266 1,491,693 1,772,210 1,698,294 1,744,569 (27,640) -2% Total Community Development $ 3,746,154 $ 3,613,076 $ 4,193,926 $ 5,243,641 $ 4,368,989 $ 4,919,808 $ (323,832) -6% Community Services
Personnel $ 277,839 $ 357,185 $ 348,427 $ 412,965 $ 279,461 $ 301,880 $ (111,083) -27%

60 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Department Budgets
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
Contractual Services 182,351 214,463 227,593 333,000 245,148 337,520 4,520 1% Professional Services 3,383 9 244 2,500 405 2,700 200 8% Operations 224,425 269,194 229,814 263,850 165,117 294,001 30,150 11% Allocations Out 573,796 654,118 675,497 821,414 784,443 516,264 (305,153) -37% Total Community Services $ 1,261,794 $ 1,494,969 $ 1,481,576 $ 1,833,728 $ 1,474,574 $ 1,452,365 $ (381,366) -21% Public Works
Personnel $ 1,015,345 $ 1,500,909 $ 1,602,504 $ 1,781,953 $ 1,852,912 $ 1,921,242 $ 139,291 8% Contractual Services 2,326,669 2,544,776 2,744,988 3,639,921 3,417,176 3,859,300 219,379 6% Professional Services 141,604 22,233 6,256 93,000 51,352 58,000 (35,000) -38% Operations 182,570 239,933 226,035 354,300 239,729 353,906 (394) 0% Capital Outlay Spending - 5,744 1,367 2,500 3,362 2,500 - 0% Miscellaneous Expenditures 274,204 301,451 298,233 - - - - 0% Allocations Out 1,346,249 1,439,791 1,442,164 1,808,033 1,780,824 2,010,659 202,629 11% Total Public Works $ 5,286,640 $ 6,054,838 $ 6,321,546 $ 7,679,707 $ 7,345,354 $ 8,205,607 $ 525,905 7% Capital Projects
Personnel $ - $ - $ - $ - $ 3,290 $ - $ - 0%
Contractual Services 1,349,644 2,130,744 2,026,626 1,385,000 1,625,085 1,455,000 70,000 5% Professional Services 569,510 228,221 653,113 - 626,619 - - 0% Operations 52,794 23,967 77,516 - 280,822 - - 0%
Capital Outlay Spending 962,204 1,528,763 711,896 3,899,226 5,385,728 2,694,310 (1,204,916) -31% Allocations Out 129,373 136,400 128,749 - 101,038 6,620 6,620 0% Total Capital Projects $ 3,063,525 $ 4,048,095 $ 3,597,899 $ 5,284,226 $ 8,022,581 $ 4,155,930 $ (1,128,296) -21% Non-Departmental
Personnel $ 137,728 $ (62,649) $ - $ - $ 1,267 $ - $ - 0% Operations 3,641 12,000 107 - - - - 0%
Capital Outlay Spending - 23,429 - - - - - 0%
Allocations Out 142,026 145,917 - - - 6,620 6,620 0%
Total Non-Departmental $ 283,395 $ 118,698 $ 107 $ - $ 1,267 $ 6,620 $ 6,620 0% Total Expenditures $ 19,907,637 $ 22,056,776 $ 23,067,225 $ 28,442,172 $ 29,308,765 $ 27,970,848 $ (471,326) -2%

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 61 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

62 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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
Public Safety 508,979
Animal Control 26,455
Planning Administration 1,000,431
Planning Commission 62,059
Code Enforcement Operations 47,186
Building Operations 634,893
Community Services Administration 233,058
Recreation Programs 7,513
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
Community Services Grant 13,468
Non-Departmental 6,620
Total 4,833,634

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 63 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

64 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 65 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

66 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 67 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.

68 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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 of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 69 Depart
ment Budgets
City Council (011-1100)
Town Goal: Promote and Maintain Infrastructure
• 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 $67,521, or 11% 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.

70 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Depart
ment Budgets
City Council (011-1100)
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 $ 630,759 $ 452,008 $ (178,751) -28% Total Revenues $ 308,204 $ 356,671 $ 464,279 $ 630,759 $ 630,759 $ 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 49,863 142,930 205,500 129,247 188,000 (17,500) -9% 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 $ 698,280 $ 67,520 11% City Council Expenditures
308,204 357,572 464,279 547,501 630,759 698,280
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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 71 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

BUILDING

OPERATIONS CITY MANAGER

ENGINEERING

ADMINISTRATION

PLANNING

ADMINISTRATION
TOTAL 2026 -

PROPOSED
City Manager - 1.00 - - 1.00
Deputy City Manager 0.05 0.85 0.05 0.05 1.00
Management Analyst - 1.00 - - 1.00
Total Full Time 0.05 2.85 0.05 0.05 3.00

72 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 includes meritorious performance raises, which are initially budgeted as a placeholder under Miscellaneous Expenditures in the City Manager’s Office. Once the merit increases are awarded, the associated personnel expenses are reallocated to the appropriate departmental budgets under Personnel.

The budget increased by $298,217, or 31% 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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 73 Depart
ment Budgets
City Manager (011-1200)
to the addition of a part-time contract Emergency Services Manager ($120K). 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 $ 976,864 $ 798,050 $ (178,814) -18% Total Revenues $ 519,076 $ 450,298 $ 606,920 $ 976,864 $ 976,864 $ 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 13,204 206,500 41,500 25% 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 $ 1,275,081 $ 298,217 31% City Manager Expenditures
519,076 641,497 605,720
899,699 976,864
1,275,081
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

74 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 75 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 $ 340,000 $ 289,060 $ (50,940) -15% Total Revenues $ 435,749 $ 638,914 $ 277,044 $ 340,000 $ 340,000 $ 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

76 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 77 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

78 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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:

CITY CLERK CITY MANAGER COMMITTEES

ENGINEERING

ADMINISTRATION
TOTAL 2026 -

PROPOSED
Administrative Clerk / Technician 0.50 0.05 0.40 0.05 1.00 City Clerk 0.75 0.20 0.05 - 1.00
Total Full Time 1.25 0.25 0.45 0.05 2.00

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 79 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

80 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 $ 279,406 $ 315,170 $ 35,764 13% Total Revenues $ 189,211 $ 230,163 $ 271,101 $ 279,406 $ 279,406 $ 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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 81 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 1.07. Additionally, each committee has Council liaison who provide Council oversight and staff support to complete research and analysis as directed by Council.

82 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 83 Depart
ment Budgets
Committees and Commissions (011-1700)
Budget Summary:

Committee & Commissions is a General Administrative department. The Committee & Commissions budget decreased by $39,735, or 15% 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 280,404 336,521 258,403 261,994 261,994 260,852 (1,142) 0% Total Revenues $ 280,404 $ 338,879 $ 262,235 $ 261,994 $ 261,994 $ 260,852 $ (1,142) 0% Expenditures
Personnel $ 175,301 $ 219,884 $ 219,241 $ 230,494 $ 193,440 $ 191,705 $ (38,789) -17% 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 $ 222,259 $ (39,735) -15% Committees and Commissions Expenditures
280,404
338,879
258,403
208,976
261,994 222,259
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

84 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 85 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 Department staffing is distributed to various divisions and programs as follows.

The department also has a 0.5 FTE Management Analyst that is shared with Community Development.

86 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Depart
ment Budgets
Finance & Administrative Services (011-1400)
Department Staffing

FINANCE &

ADMINISTRATIVE

SERVICES
TOTAL 2026 -

PROPOSED
Accounting Technician 1.00 1.00
Finance Director 1.00 1.00
Senior Accountant 2.00 2.00
Total Full Time 4.00 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
• 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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 87 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 $124,055, or 12% 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 ($10,000) from the Town Center and introducing new software systems for budgeting ($23,000), payroll ($27,000), and job classification updates and analysis ($8,000). These updates will improve the accuracy and timeliness of the Town’s budget and Annual Comprehensive Financial Report (ACFR), while also supporting long-term 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
1,128,599
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

88 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 $ 1,004,544 $ 1,166,519 $ 161,975 16% Total Revenues $ 805,243 $ 847,596 $ 936,339 $ 1,004,544 $ 1,004,544 $ 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 80,897 124,596 56,526 83% Total Expenditures $ 805,243 $ 847,596 $ 970,033 $ 1,004,544 $ 952,199 $ 1,128,599 $ 124,054 12%

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 89 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

90 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 91 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 464,936 249,114 328,190 400,000 400,000 351,159 (48,841) -12% Total Revenues $ 513,221 $ 253,286 $ 349,858 $ 400,000 $ 400,000 $ 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

92 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 93 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 1,680 13,468 11,742 680% Total Expenditures $ 17,645 $ 100,910 $ 84,684 $ 41,762 $ 55,013 $ 53,505 $ 11,742 28% Community Services Grant Expenditures
17,645
100,910 84,684
55,013 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

94 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 579,801 750,820 674,828 952,161 808,854 1,009,914 57,753 6% Total Revenues $ 579,801 $ 737,581 $ 685,770 $ 952,161 $ 808,854 $ 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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 95 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.

96 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 $356,343, or 10% 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): $550,000
• Neighborhood Watch program: $10,000
• Speed camera cloud services (placeholder): $1,000
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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 97 Depart
ment Budgets
Public Safety (011-2100)
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
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 3,367,766 53,970 2% Operations - - 11,351 10,000 9,856 13,324 3,324 33%
Allocations Out 146,259 163,694 159,825 205,561 192,604 508,979 303,417 148% Total Expenditures $ 2,123,237 $ 2,282,559 $ 3,567,900 $ 3,533,726 $ 3,474,820 $ 3,890,069 $ 356,342 10% Public Safety Expenditures
2,123,237 2,282,559
3,567,900 3,533,726 3,474,820 3,890,069
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

98 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 8,277 26,455 15,355 138% Total Expenditures $ 8,603 $ 59,728 $ 63,043 $ 161,335 $ 158,277 $ 183,455 $ 22,119 14% Animal Control Expenditures
8,603 8,603
59,728 59,728 63,043 63,043
161,335 161,335 158,277 158,277
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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 99 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

100 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 the following employees:

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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 101 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

102 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Depart
ment Budgets
Planning Administration (011-3100)
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
View from off-road Pathway to La Paloma Road

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 103 Depart
ment Budgets
Planning Administration (011-3100)
Car show at the Picnic
Department Staffing
Community Development Department staffing is distributed to various divisions and programs as follows. The Management Analyst is shared with Finance & Administrative Services.

BUILDING

OPERATIONS CODE COMMITTEES FINANCE & PLANNING

PLANNING

COMMISSION
TOWN
CENTER

OPERATIONS
(for Internal
Service Fund)
TOTAL 2026
- PROPOSED
Administrative Clerk /
Technician 0.10 - 0.05 - 0.30 0.10 0.45 1.00
Assistant Planner - - - - 2.00 - - 2.00
Associate Planner 0.02 0.01 0.06 - 0.80 0.11 - 1.00
Building / Planning Technician 1.95 0.05 - - - - - 2.00 Community Dev. Director 0.25 0.10 0.05 - 0.55 0.05 - 1.00 Management Analyst 0.25 - - 0.50 0.25 - - 1.00
Senior Planner 0.02 0.01 0.06 - 0.80 0.11 - 1.00
Total Full Time 2.59 0.17 0.22 0.50 4.70 0.37 0.45 9.00

104 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Depart
ment Budgets
Planning Administration (011-3100)
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 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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 105 Depart
ment Budgets
Planning Administration (011-3100)
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 increased by $20,084, or 1% 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.

106 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 $ 592,300 $ 940,479 $ 308,792 49% 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 1,086,757 1,000,431 (127,492) -11% Total Expenditures $ 1,673,492 $ 1,846,112 $ 1,989,910 $ 2,262,601 $ 2,073,264 $ 2,282,685 $ 20,087 1% Planning Administration Expenditures
1,673,492 1,846,112 1,989,910 2,073,264 2,262,601 2,282,685 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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 107 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 $67,205, or 86% 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 $ 57,946 $ 69,135 $ 19,773 40% 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 8,032 62,059 51,288 476% Total Expenditures $ 40,319 $ 92,440 $ 142,861 $ 78,382 $ 78,498 $ 145,587 $ 67,204 86% Planning Commission Expenditures
40,319
92,440
142,861
78,382 78,498
145,587
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

108 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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 $82,472, or 39% 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 $ 39,361 $ (3,128) -7% 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 23,580 47,186 15,564 49% Total Expenditures $ 195,079 $ 173,771 $ 152,386 $ 212,111 $ 166,757 $ 294,583 $ 82,472 39% Code Enforcement Expenditures
195,079 173,771 152,386 166,757 212,111
294,583
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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 109 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 $493,595, or 18% 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.

110 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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 $ 524,542 $ 542,188 $ (45,312) -8% 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 449,825 479,307 515,496 601,894 579,925 634,893 33,000 5% Total Expenditures $ 1,837,263 $ 1,500,754 $ 1,908,769 $ 2,690,548 $ 2,034,198 $ 2,196,953 $ (493,595) -18% 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 2,034,198
2,690,548
2,196,953
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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 111 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.

112 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 113 Depart
ment Budgets
Community Services Administration (011-1000)
Program Summary:

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

1. Recreation program
a. Fee Based Classes/Camps April - March 53 84 55
b. Fee-Based Participants April - March 346 409 375
c. Free Programs April - March 56 79 58
d. Total Programs April - March 109 163 113

2. Events FY 17 18 21
a. Shred Event # Households 85/128=213 86/132=218 230
b. Guess the Pumpkins Weights #Entries 98 Entries 223 Entries 210 c. TEDx #Registrations 107
d. Chamber Music #Registrations 56
e. Pathways Run/Walk #Registrations 512 500 424

3. Notarial Acts FY 207 305 110
a. Appointment 100 89 93

4. Field Rental (excludes Little League) FY
# of Bookings 98 60 64
Total Hours Rented 395.5 274.5 285
Revenue $15,680 $5,300 $10,545

4. Westwind Barn Operations FY
a. Summer Camp Registrations 139 145 147
b. Town’s Summer Camp Revenue $17,600 $21,381 $23,358
(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 staffing is distributed to various divisions and programs as follows.

Department Staffing

COMMITTEES

COMMUNITY

SERVICES

ADMINISTRATION

PARKS & REC

SPECIAL EVENTS WWB FACILITY
TOTAL 2026 -

PROPOSED
Community Services Supervisor 0.15 0.15 0.50 0.20 1.00
Total Full Time 0.15 0.15 0.50 0.20 1.00

114 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 115 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 $ 61,618 $ 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 504,798 582,944 569,969 732,037 712,612 233,058 (498,980) -68% Total Expenditures $ 687,648 $ 815,623 $ 667,949 $ 909,980 $ 806,098 $ 350,184 $ (559,796) -62% Community Services Administration Expenditures
687,648
815,623
667,949
806,098 909,980
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

116 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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 28,394
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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 117 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 21,226 7,513 (20,952) -74% Total Expenditures $ 30,189 $ 33,095 $ 31,580 $ 45,820 $ 28,394 $ 18,163 $ (27,657) -60%

118 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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
131,360 131,360
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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 119 Depart
ment Budgets
Special Events (011-4120)
Pathways Run
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 $ 19,000 $ 24,000 $ 10,000 71% Total Revenues $ 23,063 $ 26,052 $ 24,976 $ 14,000 $ 19,000 $ 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 14,170 74,095 55,092 290% Total Expenditures $ 125,184 $ 166,817 $ 279,533 $ 262,721 $ 131,360 $ 288,006 $ 25,285 10%

120 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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 $ 55,000 $ 57,500 $ 2,500 5% Total Revenues $ 51,493 $ 50,212 $ 52,585 $ 55,000 $ 55,000 $ 57,500 $ 2,500 5% Expenditures
Personnel $ 70,647 $ 93,504 $ 79,600 $ 64,193 $ 62,841 $ 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 11,044 87,442 72,631 490% Total Expenditures $ 164,833 $ 198,541 $ 193,129 $ 251,003 $ 200,007 $ 333,006 $ 82,002 33% Parks Expenditures
164,833 198,541 193,129 200,007
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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 121 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.

Westwind Community Barn Expenditures
253,941 280,894 309,386 308,714 364,205
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

122 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Depart
ment Budgets
Westwind Community Barn (011-5300)
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 25,391 114,156 87,056 321% Total Expenditures $ 253,941 $ 280,894 $ 309,386 $ 364,205 $ 308,714 $ 463,005 $ 98,800 27%

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 123 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

124 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Depart
ment Budgets
Public Works Administration
Department Staffing
Public Works Department staffing is distributed to various divisions and programs as follows.

125 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Department Budgets
Public Works Administration
Building
Operations Committees
Corp Yard
Operations
(for Internal
Service Fund) Engineering Parks
Pathway
Operations Planning
Sewer Fund
Operations
Storm Drain
Operations
Street
Operations
Town Center
Operations
(for Internal
Service Fund)
Vehicle /
Equipment
Operations
(for Internal
Service Fund) Wwb Facility
TOTAL
2026 -

PROPOSED
Assistant Engineer 0.10 0.10 0.05 0.45 0.05 0.40 - 0.40 0.10 0.10 0.25 - - 2.00 Maintenance
Superintendent - - 0.05 - 0.05 0.30 - 0.05 0.10 0.20 0.10 0.10 0.05 1.00 Maintenance Worker I - - 0.05 - 0.05 0.30 - 0.05 0.20 0.25 0.05 0.05 - 1.00 Maintenance Worker II - - 0.05 - 0.10 0.25 - 0.05 0.10 0.25 0.05 0.12 0.03 1.00 Maintenance Worker III - - 0.10 - 0.10 0.60 - 0.10 0.30 0.50 0.10 0.17 0.03 2.00 Project Manager 0.10 - - 0.20 - 0.20 0.20 - 0.10 0.20 - - - 1.00 Public Works Director /
City Engineer 0.05 0.10 0.05 0.10 0.05 0.20 0.05 0.15 0.05 0.10 - 0.05 0.05 1.00 Public Works Inspector 0.10 - - 0.10 0.05 0.20 - 0.20 0.10 0.20 - - 0.05 1.00 Utilities Manager 0.05 0.05 - 0.15 - 0.05 0.05 0.40 0.20 0.05 - - - 1.00 Total Full Time 0.40 0.25 0.35 1.00 0.45 2.50 0.30 1.40 1.25 1.85 0.55 0.49 0.21 11.00

126 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Depart
ment Budgets
Public Works Administration
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.

Westwind Community Barn

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 127 Depart
ment Budgets
Public Works Administration
Town Goal: Increase Effective Service Delivery & Governance • 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.

128 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 1,278,934 1,394,527
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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 129 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 $ 311,053 $ 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 563,103 593,655 636,636 745,490 718,280 544,546 (200,944) -27% Total Expenditures $ 978,883 $ 976,545 $ 1,106,189 $ 1,394,527 $ 1,278,934 $ 1,023,013 $ (371,513) -27%

130 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 131 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 $ - $ 351,516 $ 166,116 $ 166,116 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 9,858 900,000 910,452 910,976 10,976 1% 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 3,719,000 4,105,898 390,018 10% Total Revenues $ 3,134,992 $ 4,567,409 $ 3,882,938 $ 4,741,540 $ 5,201,835 $ 5,312,420 $ 570,880 12% Expenditures
Personnel $ 67,090 $ 353,709 $ 280,727 $ 309,808 $ 461,311 $ 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 270,358 289,555 280,939 320,073 348,441 469,578 149,505 47% Total Expenditures $ 2,645,210 $ 4,097,240 $ 3,264,000 $ 5,615,103 $ 5,281,111 $ 6,033,062 $ 417,960 7% Sewer Expenditures
432,409
2,727,619 4,192,484 3,311,931
4,848,702
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

132 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 $ 207,198 $ 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 120,596 132,859 120,769 166,839 166,839 206,584 39,746 24% Total Expenditures $ 302,076 $ 554,327 $ 390,021 $ 504,509 $ 440,087 $ 567,122 $ 62,616 12% Storm Drain Operations Expenditures
302,076
554,327
390,021 440,087 504,509 567,122
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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 133 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 $ 274,345 $ 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 236,504 253,144 244,022 317,889 317,889 339,902 22,014 7% Total Expenditures $ 574,923 $ 664,043 $ 633,394 $ 837,652 $ 716,567 $ 909,337 $ 71,685 9% Street Operations Expenditures
574,923 664,043 633,394 716,567 837,652 909,337
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

134 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 $ 438,778 $ 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 188,869 205,248 193,855 257,742 257,742 456,669 198,928 77% Total Expenditures $ 560,586 $ 640,220 $ 653,909 $ 814,148 $ 764,206 $ 1,075,479 $ 261,331 32% Pathway Operations Expenditures
560,586 640,220 653,909 814,148 764,206
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 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 135 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 $ 181,682 $ 225,288 $ 43,606 24% Total Revenues $ 119,337 $ 146,797 $ 142,482 $ 181,682 $ 181,682 $ 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

136 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 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 $ 132,086 $ 178,926 $ 46,840 35% Total Revenues $ 95,468 $ 105,696 $ 94,342 $ 132,086 $ 132,086 $ 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

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Guide to Five‐
Year CIP

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 139 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.

140 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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 2025-26, 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

143 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improvement Plan Summary and Funding Sources

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

144 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improvement Plan Summary and Funding Sources

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 $ 229,559 $ 241,000 $ 253,100 $ 265,800 $ 279,100 $ 1,268,559 Measure B $ 0 $ 254,596 $ 214,158 $ 224,900 $ 236,100 $ 247,900 $ 1,177,654 Gas Tax $ 0 $ 247,920 $ 260,300 $ 273,300 $ 287,000 $ 301,400 $ 1,369,920 Drainage in-lieu $ 0 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 200,000 CIP/ General Fund $ 111,212 $ 429,325 $ 437,242 $ 392,300 $ 345,100 $ 320,500 $ 2,035,679 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

145 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improvement Plan Summary and Funding Sources

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 $ 1,618,635 $ 2,256,591 $ 807,300 $ 585,100 $ 530,500 $ 9,205,865 Drainage in-lieu $ 535,965 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 735,965 Gas Tax $ - $ 247,920 $ 260,300 $ 273,300 $ 287,000 $ 301,400 $ 1,369,920 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 $ - $ 229,559 $ 241,000 $ 253,100 $ 265,800 $ 279,100 $ 1,268,559 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

146 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 147 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.

148 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 149 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.

150 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 151 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.

152 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 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.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 153 Capital Improve
ment Plan Summary and Funding Sources

HOUSING ELEMENT
Department: Planning
Program: Infrastructure
Project Number: 410220
Initial funding year: FY 2021-22
Planned start date: July 2021
Estimated completion date: May 2026
Project Description
Since 1969, California has required that all local governments (cities and counties) adequately plan to meet the housing needs of everyone in the community. To date, California is now in its sixth Housing Element cycle (2023-2031) for jurisdictions in the Bay Area).

Before each cycle, the State provides a target for how many homes to plan for in every jurisdiction, known as Regional Housing Needs Allocation (RHNA). On January 30, 2023, the City Council adopted the 6th cycle Housing Element in substantial compliance with the State law, which was timely submitted to California Housing and Community Development Department (HCD) for post-adoption certification. The adopted 6th cycle Housing Element is introducing multi-family zones to accommodate density at twenty (20) to thirty (30) dwellings per acre. The proposed change will require an amendment to the Land Use Element of the General Plan and Municipal Code to establish the multi-family zones with objective development and design standards. In addition, the proposed rezoning requires a Program Environmental Impact Report (EIR) pursuant to the California Environmental Quality Act (CEQA).

The state law requires Safety Element be to be updated with an Housing Element update. Safety Element identifies the need for local jurisdictions to understand their vulnerablities to hazards such as seismic hazards, wildfires, geologic issues, flooding climate change, and other natural hazards. The Safety Element shall also comply with Senate Bill (SB) 379 requirements.

Project Status
The statutory deadline for jurisdictions in the Bay Area to adopt a Housing Element is January 31, 2023, and Los Altos Hills successfully achieved this. Jurisdictions that have their Housing Element certified as compliant by HCD by May 31, 2023 are allowed three (3) years to complete the EIR and Rezoning. The Town awarded a $350,000 contract to Michael Baker International (MBI) for the Housing Element and Safety Element updates. After coordinating with HCD on several technical revisions to the Housing Element, the Town was advised by HCD on May 12, 2023 that the revised Housing Element had been certified as compliant by HCD. The Town also awarded another $601,620 contract to the same consultant for preparation of Zoning standards, objective design standards, and Program EIR to meet the three (3) year timeframe to complete the EIR and Rezoning. Now in 2025 The town has choosen to reduce the denisity to twenty (20) to twenty four (24) dwellings per acre as well as adjusting the zoning approach to target less acrage being rezoned on the twin oaks opertunity site. This Amendment to the certified housing element will rerequire a contract amendment with MBI which if approved through budgeting process will add another $300,000 to the existing contract.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Housing Element $ 1,456,000 $ 841,224 $ 614,776 $ 614,776 Total: $ 1,456,000 $ 841,224 $ 614,776 $ - $ 614,776

154 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources
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 $ 614,776 $ 53,000 $ 667,776
Total Funding: $ 614,776 $ 53,000 $ - $ - $ - $ - $ 667,776 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Housing Element $ 614,776 $ 53,000 $ 667,776
Total Spending: $ 614,776 $ 53,000 $ - $ - $ - $ - $ 667,776 Recurring annual maintenance and operating costs, if applicable N/A

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 155 Capital Improve
ment Plan Summary and Funding Sources

PURISSIMA PARK IMPROVEMENT PROGRAM (FIELD & FACILITY IMPROVEMENTS) Department: Public Works
Program: Infrastructure
Project Number: 410225
Initial funding year: FY 2021-22
Planned start date: Ongoing
Estimated completion date: Ongoing
Project Description
List of improvements at Purissima Park to be completed in phases:

1. Continued repair of fencing to provide better safety to those outside of playing fields.

2. Upgrade water fountains (4), adding a fillable station in the back by the basketball court.

3. Parking lot maintenance (re-stripe and seal coat)

4. Playground repair/maintenance, including installing new engineered fibar mulch.

Project Status
Field 3 (P3) fence repair and parking lot pavement digout repairs completed in summer 2023. Field 2 (P2) fence repair completed in spring 2025. Fields 1 (P1) & 4 (P4) fences are planned to be repaired in 2026.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Purissima Park Improvement $ 140,000 $ 58,621 $ 81,379 $ 81,379 Total: $ 140,000 $ 58,621 $ 81,379 $ - $ 81,379
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 $ 81,379 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ - $ 201,379 Total Funding: $ 81,379 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ - $ 201,379 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Purissima Park Improvement $ 81,379 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ - $ 201,379 Total Spending: $ 81,379 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ - $ 201,379 Recurring annual maintenance and operating costs, if applicable No maintenance and operating cost applicable.

156 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources

SECURITY CAMERA UPGRADE
Department: City Manager’s Office
Program: Infrastructure
Project Number: 410235
Initial funding year: FY 2024-25
Planned start date: July 2024
Estimated completion date: Ongoing program
Project Description
The security camera system at Town Hall, the Corporation Yard, and Westwind Community Barn need to be replaced. This replacement project was identified on the 2024-25 two-year City Council Work Plan, and reaffirmed in the update to the plan in January 2025. Staff is working with the Technology Committee to research options for each site. It is estimated that each location will cost roughly $100,000 to install. The new system will comply with all state and federal requirements of security camera recording on public land.Given the large cost to the project, staff is recommending to upgrade one location per year at a time (Town Hall 2025, Corp Yard 2026, Westwind Barn, 2027)
Project Status
Staff began working on this project in late 2024, and should have a recommendation to being to the City Council for contract in 2025 for the Town Hall location. No costs were incurred in FY 2024-25. Any budget augmentation can take place at that time.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Security Camera System $ 100,000 $ - $ 100,000 $ - $ 100,000 Total: $ 100,000 $ - $ 100,000 $ - $ 100,000
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 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ - $ - $ 400,000 Total Funding: $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ - $ - $ 400,000 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Security Camera System $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ - $ - $ 400,000 Total Spending: $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ - $ - $ 400,000 Recurring annual maintenance and operating costs, if applicable The camera system staff proposes include a service and licensing fee within the proposed budget.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 157 Capital Improve
ment Plan Summary and Funding Sources

STREET SIGN REPLACEMENT
Department: Public Works
Program: Infrastructure
Project Number: 410226
Initial funding year: FY 2021-22
Planned start date: March 2022
Estimated completion date: Ongoing
Project Description
Town street signs require upgrades to meet current sign standards such as for retro-reflectivity. This street sign project began in 2022 with an annual budget of $15,000, which was increased to $25,000 in FY2024/25. The majority of the costs is to purchase street signs, posts, hardware, concrete, and other materials for installation by the Town’s maintenance staff.

Project Status
Regulatory and warning signs such as STOP and YIELD are also being replaced in accordance with CA MUTCD’s new standards. Town maintenance staff have replaced approximately 1/3 of all street signs as of spring 2025.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Street Sign Replacement $ 54,000 $ 38,625 $ 15,375 $ 15,375 Total: $ 54,000 $ 38,625 $ 15,375 $ - $ 15,375
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 $ 15,375 $ 25,000 $ 25,000 $ 25,000 $ 90,375 Total Funding: $ 15,375 $ 25,000 $ 25,000 $ 25,000 $ - $ - $ 90,375 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Street Sign Replacement $ 15,375 $ 25,000 $ 25,000 $ 25,000 $ 90,375 Total Spending: $ 15,375 $ 25,000 $ 25,000 $ 25,000 $ - $ - $ 90,375 Recurring annual maintenance and operating costs, if applicable No maintenance and operating cost applicable.

158 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources

MISCELLANEOUS TECHNOLOGY
Department: Administrative Services
Program: Infrastructure
Project Number: 410227-26
Initial funding year: FY 2022-23
Planned start date: July 2022
Estimated completion date: On Going
Project Description
The Miscellaneous Technology CIP for FY 25-26 is designed to improve the Town’s Technology for larger projects that are identified under the Town’s IT Master Plan and are not already included in the operating budget. Projects covered under this CIP will be managed by the City Manager’s Office. This CIP is designed to allow for projects to be completed on shorter timelines as our IT Services vendor can complete.

Project Status
The Town just completed it’s next 3-year IT strategic plan which covered the years of 2026-2028. The proposed IT projects scheduled for FY 25-26 include (but are not limited to): Develop Intranet using SharePoint, Upgrade website, Implementation of an A.I. chatbot for the website, Deploy IT disaster recovery + business continuity plan, and launching a password manager for employees.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Technology $ 100,000 $ 86,270 $ 13,730 $ 13,730
Total: $ 100,000 $ 86,270 $ 13,730 $ - $ 13,730
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 $ 13,730 $ 80,000 $ 50,000 $ 50,000 $ 193,730 Total Funding: $ 13,730 $ 80,000 $ 50,000 $ 50,000 $ - $ - $ 193,730 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Technology $ 13,730 $ 80,000 $ 50,000 $ 50,000 $ 193,730 Total Spending: $ 13,730 $ 80,000 $ 50,000 $ 50,000 $ - $ - $ 193,730 Recurring annual maintenance and operating costs, if applicable N/A

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 159 Capital Improve
ment Plan Summary and Funding Sources

TOWN FACILITIES ENERGY EFFICIENCY (NEW)
Department: Public Works
Program: Infrastructure
Project Number: 410236
Initial funding year: FY 2024-25
Planned start date: Summer 2024
Estimated completion date: End of 2026
Project Description
Town is looking to work with an Energy Services Company (ESCO) to conduct energy audits of Town facilities including Town Hall, Heritage House, Parks & Recreation building, Westwind Community Barn, and Corporation Yard. ESCO will also provide recommendations and design for improvements for energy efficiency for implementation, if approved by the City Council. Government Code Section 4217 authorizes local governments to enter into Energy Saving Performance Contracts on terms that are found to be “in the best interests” of the agency, “notwithstanding any other provision of law.” In essence, this law allows a public entity to sole-source or directly engage into an energy contract as long as the anticipated cost(s) for the energy project or efficiency services is less than the anticipated energy cost savings to be derived from those services over the term of the contract.

Project Status
Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Energy Audit & Design $ 60,000 $ - $ 60,000 $ 60,000
Construction - -
Total: $ 60,000 $ - $ 60,000 $ - $ 60,000
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 $ 60,000 $ 150,000 $ 210,000
Total Funding: $ 60,000 $ 150,000 $ - $ - $ - $ - $ 210,000 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Energy Audit & Design $ 60,000 $ 60,000
Construction $ - $ 150,000 $ 150,000
Total Spending: $ 60,000 $ 150,000 $ - $ - $ - $ - $ 210,000 Recurring annual maintenance and operating costs, if applicable Maintenance and operational needs would be determined during design and construction phases

160 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources

TRAFFIC SIGNAL IMPROVEMENTS
Department: Public Works
Program: Infrastructure
Project Number: 410233
Initial funding year: FY 2023-24
Planned start date: Fall 2023
Estimated completion date: Q4 FY2025/26
Project Description
Aging traffic signal equipment at the three signalized intersections along El Monte Road at Voorhees Drive, Stonebrook Drive, and Foothill College require upgrades and modernization. Controller units at Voorhees Drive and Stonebrook Drive intersections require replacements. This project scope will include replacement of traffic signal controller units, installation of battery backup systems and detection cameras, and other updates needed to the Town’s three signalized intersections.

Project Status
Controllers replaced and backup battery system installed for all three intersections. Install detection cameras by end of FY2025/26.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Equipment Replacements $ 70,000 $ 39,179 $ 30,821 $ 30,821 Total: $ 70,000 $ 39,179 $ 30,821 $ - $ 30,821
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 $ 30,821 $ 20,000 $ 50,821
Total Funding: $ 30,821 $ 20,000 $ - $ - $ - $ - $ 50,821 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Equipment Replacements $ 30,821 $ 20,000 $ 50,821
Total Spending: $ 30,821 $ 20,000 $ - $ - $ - $ - $ 50,821 Recurring annual maintenance and operating costs, if applicable New equipment will be maintained by traffic signal maintenance contractor as part of the current scope.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 161 Capital Improve
ment Plan Summary and Funding Sources

WATER WELL AT PURISSIMA PARK
Department: Public Works
Program: Infrastructure
Project Number: 410228
Initial funding year: FY 2021-22
Planned start date: 2022
Estimated completion date: TBD
Project Description
Investigate the viability of a new well and, if viable, drill a new water well; install a water pump and electrical wiring; upgrade the electrical panel; and modify irrigation conduits irrigation at the Little League Fields. A geological desktop study was conducted in September 2022. The geologist recommended additional field investigation, including a site-specific hydrogeologic analysis and drilling a pilot boring to a maximum depth of 400 feet to determine the water table.

Project Status
A geological desktop study has been completed. Additional field investigations and hydrogeologic analyses are expected to begin in 2026.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Water Well at Purissima Park $ 40,000 $ 4,987 $ 35,013 $ 35,013 Total: $ 40,000 $ 4,987 $ 35,013 $ - $ 35,013
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 $ 35,013 $ 200,000 $ - $ - $ - $ - $ 235,013 Total Funding: $ 35,013 $ 200,000 $ - $ - $ - $ - $ 235,013 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Water Well at Purissima Park $ 35,013 $ 200,000 $ - $ - $ - $ - $ 235,013 Total Spending: $ 35,013 $ 200,000 $ - $ - $ - $ - $ 235,013 Recurring annual maintenance and operating costs, if applicable Maintenance and operational needs would be determined during design and construction phases.

162 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources

ROAD SAFETY AND TRAFFIC CALMING (NEW)
Department: Public Works
Program: Infrastructure
Project Number: NEW
Initial funding year: FY 2025/26
Planned start date: Q1 FY2025/26
Estimated completion date: Ongoing
Project Description
Road safety and traffic calming measures shall implement strategies to improve road and pathway safety and reduce vehicle speeds, especially in pedestrian-heavy areas. The goal is to create safer environments for everyone, including drivers, pedestrians, and cyclists.

Road safety and traffic calming measures can consist of signages and markings, intersection modifications, crosswalk enhancements, roadway narrowing, speed humps/tables/cushils, and others to be based on best traffic engineering practices and judgements to produce desired effects.

Project Status
Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Design & Construction $ - $ - $ - $ - $ -
Total: $ - $ - $ - $ - $ -
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 $ - $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 300,000 Total Funding: $ - $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 300,000 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Design & Construction $ - $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 300,000 Total Spending: $ - $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 300,000 Recurring annual maintenance and operating costs, if applicable May depend on the roadway safety and traffic calming measures.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 163 Capital Improve
ment Plan Summary and Funding Sources

PARKS AND RECREATION CENTER RENOVATION (NEW)
Department: Public Works
Program: Infrastructure
Project Number: NEW
Initial funding year: FY 2025/26
Planned start date: Early 2026
Estimated completion date: TBD
Project Description
As one of the design options for the Civic Center Improvements, the City Council approved the concept design for the renovation of the Parks & Recreation building. The goal of the project is to improve the Parks & Recreation Center to create a more functional workspace for Town employees and to make necessary improvements at Town Hall to accommodate any relocation of staffing and programs.

The renovation scope for the Parks and Recreation Center will include making ADA upgrades, modifying the building configuration, creating additional workspaces, improvements to the HVAC system, optimize storage, and potentially expanding the building footprint.

Additional funds may be need if fire sprinklers are required for the Parks and Recreation building and for electrification of the building.

Project Status
The final design phase is anticipated to begin early 2026.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Design $ - $ - $ - $ -
Construction - -
Total: $ - $ - $ - $ - $ -
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 $ - $ 200,000 $ 1,300,000 $ 1,500,000 Total Funding: $ - $ 200,000 $ 1,300,000 $ - $ - $ - $ 1,500,000 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Design $ - $ 200,000 $ - $ - $ - $ - $ 200,000
Construction $ - $ - $ 1,300,000 $ - $ - $ - $ 1,300,000 Total Spending: $ - $ 200,000 $ 1,300,000 $ - $ - $ - $ 1,500,000 Recurring annual maintenance and operating costs, if applicable Staff to continue maintenance of Parks & Recreation building.

164 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources

MISCELLANEOUS PATHWAYS
Department: Public Works
Program: Pathways
Project Number: 427913-26
Initial funding year: FY 2021-22
Planned start date: Summer 2021
Estimated completion date: Ongoing
Project Description
The Miscellaneous Pathways Capital Improvement Project is designed to improve the Town’s pathways system by filling in gaps and repairing existing segments. The projects included in this CIP will be selected from a list that is maintained and regularly updated by the Pathways Committee. Once the list of eligible projects has been established, work would be initiated and completed by staff and/ or contractor. This CIP is intended to facilitate the completion of smaller pathway projects with shorter timelines as opportunities arise.

Any projects requiring extensive planning, design, and construction would be converted to an individual CIP projects.

Pathway CIPs are funded by the Pathway Fund from pathway development impact fees. Due to escalating costs of pathways design and construction, the Town is in the process of updating the pathway impact fee to be implemented in FY2025/26.

Project Status
In 2024, Town Staff focused on the feasibility and analysis of off-road pathways. The Saddle Mountain–Stirrup Way off-road path was installed in December 2024. For 2025, staff is focusing on the feasibility of roadside pathways and the design of the roadside pathway on Magdalena Avenue. A separate CIP for Magdalena Avenue roadside pathway is proposed for FY2025/26.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
Pathway Fund
Remaining
Budget
Design/Construction $ 1,020,136 $ 520,647 $ 499,489 $ 454,353 $ 45,136 Total: $ 1,020,136 $ 520,647 $ 499,489 $ 454,353 $ 45,136 Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Pathway Fund $ - $ 50,000 $ - $ 100,000 $ 100,000 $ 100,000 $ 350,000 TDA 45,136 45,136
Total Funding: $ 45,136 $ 50,000 $ - $ 100,000 $ 100,000 $ 100,000 $ 395,136 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Design/Construction $ 45,136 $ 50,000 $ - $ 100,000 $ 100,000 $ 100,000 $ 395,136 Total Spending: $ 45,136 $ 50,000 $ - $ 100,000 $ 100,000 $ 100,000 $ 395,136 Recurring annual maintenance and operating costs, if applicable The projects in the CIP would be funded by a reoccurring annual contribution from the Pathway Fund, as determined by the City Council.

The general maintenance of the Town’s pathway system would not be funded by this CIP.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 165 Capital Improve
ment Plan Summary and Funding Sources

SUMMERHILL PATHWAY
Department: Public Works
Program: Pathways
Project Number: 427902
Initial funding year: FY 2015-16
Planned start date: June 2016
Estimated completion date: Q2 FY2026/27
Project Description
The existing pedestrian route along Summerhill Avenue on the Town side (west side) iconsists of pathway segments and paved roadway shoulders within the County of Santa Clara public right-of-way. Easements are normally secured as part of property development process; therefore, some parcels along Summerhill Avenue lack necessary easements. Additionally, existing pathways along Summerhill Avenue alternate between sides of the roadway, forcing pedestrians to cross the busy County street.

Phase 1 of the project installed pathways on Summerhill Avenue between El Monte Road and Nicole Lane in 2019. Phase 2 will be from Nicole Lane to Magdalena Avenue, which falls under County jurisdiction.

Project Status
Staff is still working with the County of Santa Clara Roads & Airports Department to obtain an encroachment permit for the project, pending approval of a tree removal permit, a maintenance and indemnification agreement, and improvement plans. Construction is anticipated to begin in summer 2026.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Design/Construction $ 526,103 $ 147,085 $ 379,018 $ 379,018 Total: $ 526,103 $ 147,085 $ 379,018 $ - $ 379,018
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Pathway Fund $ 379,018 $ 100,000 $ 479,018
Total Funding: $ 379,018 $ 100,000 $ - $ - $ - $ - $ 479,018 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Design/Construction $ 379,018 $ 100,000 $ 479,018
Total Spending: $ 379,018 $ 100,000 $ - $ - $ - $ - $ 479,018 Recurring annual maintenance and operating costs, if applicable Pathways require annual maintenance. Maintenance costs for the new pathway shall be determined.

166 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources

MAGDALENA AVENUE PATHWAY (NEW)
Department: Public Works
Program: Pathways
Project Number: NEW
Initial funding year: FY 2025-26
Planned start date: July 2025
Estimated completion date: Q2 FY2026/27
Project Description
Magdalena Avenue was identified as a priority location for new roadside pathway for FY2025-26 by the Pathways Committee.

Approximately 2,000 linear feet of new pathway segments are proposed along Magdalena Avenue, adjacent to Camino Hermoso Drive on the northern side of the street. Currently, there are segments of unimproved shoulder, which are proposed to be improved with a Type 2B Roadside Path in accordance with the Town’s standards.

Project Status
Topographic survey and staking started in April 2025 and is funded through the Miscellaneous Pathways CIP.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Design & Construction $ - $ - $ - $ - $ -
Total: $ - $ - $ - $ - $ -
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Pathway Fund $ - $ 315,000 $ - $ - $ - $ - $ 315,000
Total Funding: $ - $ 315,000 $ - $ - $ - $ - $ 315,000
Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Design/Construction $ - $ 315,000 $ - $ - $ - $ - $ 315,000 Total Spending: $ - $ 315,000 $ - $ - $ - $ - $ 315,000 Recurring annual maintenance and operating costs, if applicable Pathways require annual maintenance. Maintenance costs for the new pathway shall be determined.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 167 Capital Improve
ment Plan Summary and Funding Sources

MAPLE LEAF - MIDDLE FORK LANE PATHWAY (NEW)
Department: Public Works
Program: Pathways
Project Number: NEW
Initial funding year: FY 2025-26
Planned start date: July 2025
Estimated completion date: Q2 FY2027/28
Project Description
The City Council, following a recommendation from the Pathways Committee, directed staff to add the Maple Leaf Court to Middle Fork Lane pathway segment to the Town’s Master Path Plan (MPP). This off-road segment is approximately 1,230 feet long and would traverse through rolling hills, existing vegetation, and a seasonal stream. An Initial Study would be required for a CEQA determination before this segment can be considered for inclusion in the MPP. The Initial Study and CEQA determination may take up to a year to finalize. Changes to the MPP are considered General Plan amendments, as it is an integral component of the Pathway Element.

Project Status
Staff will issue an RFP in spring 2025 to hire a planning and environmental consultant for the Initial Study.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Initial Study $ - $ - $ - $ - $ -
Design/Construction - - - - -
Total: $ - $ - $ - $ - $ -
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Pathway Fund $ - $ 100,000 $ 150,000 $ - $ - $ - $ 250,000 Total Funding: $ - $ 100,000 $ 150,000 $ - $ - $ - $ 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
Initial Study $ - $ 100,000 $ - $ - $ - $ - $ 100,000
Design/Construction $ - $ - $ 150,000 $ - $ - $ - $ 150,000 Total Spending: $ - $ 100,000 $ 150,000 $ - $ - $ - $ 250,000 Recurring annual maintenance and operating costs, if applicable Pathways require annual maintenance. Maintenance costs for the new pathway shall be determined.

168 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources

ANNUAL ROAD REHABILITATION PROGRAM
Department: Public Works
Program: Road Rehabilitation
Project Number: 467226-26
Initial funding year: FY 2025-26
Planned start date: Fall 2025
Estimated completion date: Q4 FY2025/26
Project Description
The annual street resurfacing program is designed to maintain safe and functional Town streets. The project includes 6” AC deep lift patching, 2” asphalt concrete overlay, micro-surfacing, and all associated work. Street resurfacing includes corresponding drainage improvements. The street selections are based on recommendations from the Metropolitan Transportation Commission’s (MTC’s) Pavement Management Program (StreetSaver), utility coordination, and field inspections. Upon completion of the design phase, a list of streets and the type of work required are presented to the City Council for an authorization to advertise for bid. The roadway segments currently prioritized for the FY2025/26 resurfacing project are shown in the table below. The FY2025/26 project street list is from an updated five-year StreetSaver plan developed by the Town’s MTC consultant. After more indepth site evaluations, project coordination, design, and cost analysis, the FY2025/26 project street list may be further updated.

Project Status
Plans and specifications for the FY2025/26 street resurfacing project to be completed by early 2026 for construction start early summer 2026.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Annual Pavement Rehab $ 1,425,978 $ 1,314,766 $ 111,212 $ 111,212 Total: $ 1,425,978 $ 1,314,766 $ 111,212 $ - $ 111,212
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Gas Tax $ - $ 247,920 $ 260,300 $ 273,300 $ 287,000 $ 301,400 $ 1,369,920 SB1 Funds - 229,559 241,000 253,100 265,800 279,100 1,268,559 Vehicle Registration Fees SB 83 - 66,500 69,800 73,300 77,000 80,900 367,500 Drainage in-lieu - 40,000 40,000 40,000 40,000 40,000 200,000 Street Encroachment Fees - 107,100 112,500 118,100 124,000 130,200 591,900 Measure B - 254,596 214,158 224,900 236,100 247,900 1,177,654 CIP/ General Fund 111,212 429,325 437,242 392,300 345,100 320,500 2,035,679 Total Funding: $ 111,212 $ 1,375,000 $ 1,375,000 $ 1,375,000 $ 1,375,000 $ 1,400,000 $ 7,011,212 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Annual Pavement Rehab $ 111,212 $ 1,375,000 $ 1,375,000 $ 1,375,000 $ 1,375,000 $ 1,400,000 $ 7,011,212 Total Spending: $ 111,212 $ 1,375,000 $ 1,375,000 $ 1,375,000 $ 1,375,000 $ 1,400,000 $ 7,011,212 Recurring annual maintenance and operating costs, if applicable No additional maintenance and operating cost. This program focuses on addressing system deficiencies to maintain operating cost at the current level.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 169 Capital Improve
ment Plan Summary and Funding Sources

MEASURE B BIKE/PEDESTRIAN EDUCATION & ENCOURAGEMENT PROGRAM Department: Public Works
Program: Road Rehabilitation
Project Number: 467228
Initial funding year: FY 2024-25
Planned start date: Summer 2024
Estimated completion date: Ongoing
Project Description
Santa Clara County voters have approved 2016 Measure B, a 30-year, half-cent countywide sales tax to enhance transit, highways, expressways and active transportation (bicycles, pedestrians and complete streets). The measure passed by nearly 72%, the highest level of support for any Santa Clara County transportation tax. Collection of the tax began on April 1, 2017. As one of the approved Measure B programs, Bicycle and Pedestrian Education & Encouragement (E&E) Program provides annual funding to jurisdictions in the county for non-capital improvement projects to promote and educate communities to safely walk, bike, and resort to other multimodal and active transportation options. The E&E program funds are allocated by city population formula with a $10,000 annual minimum allocation per city, and the funds are distributed on a reimbursable basis. The Town is responsible for submitting an annual education & encouragement work program and annual progress report. The Town’s annual allocation of Measure B E&E funds since FY2017-18 has been between $10,000 to $20,000.

Project Status
As of FY2023-24, the total E&E allocation remaining for the Town is $73,286.70.Since FY2023-24, staff has been working on various E&E eligible projects including participating in Bike Month events with the City of Los Altos, working on and implementing Safe Routes to School related programs, and distributing merchandise promoting pathway usage.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
E&E Program $ 80,853 $ 7,647 $ 73,206 $ 73,206
Total: $ 80,853 $ 7,647 $ 73,206 $ - $ 73,206
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Measure B $ 73,206 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 123,206 Total Funding: $ 73,206 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 123,206 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
E&E Program $ 73,206 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 123,206 Total Spending: $ 73,206 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 123,206 Recurring annual maintenance and operating costs, if applicable Staff operating costs may be eligible for Measure B E&E fund reimbursement.

170 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources

LOCAL ROAD SAFETY PLAN (NEW)
Department: Public Works
Program: Road Rehabilitation
Project Number: NEW
Initial funding year: FY 2025/26
Planned start date: Early 2026
Estimated completion date: Late 2026
Project Description
A Local Road Safety Plan (LRSP) is an initiative in the State’s Highway Safety Improvement Program (HSIP). Preparing a LRSP provides jurisdictions with an opportunity to address unique local roadway safety needs while contributing to the success of the Strategic Highway Safety Plan. The process of preparing an LRSP establishes a framework for systematically identifying and analyzing safety problems and recommending safety improvements. Additionally, preparing an LRSP facilitates the formation of local agency partnerships and collaboration, resulting in a prioritized list of improvements and actions that demonstrate a clear need and alignment with the Statewide plan. The LRSP offers a proactive approach to addressing safety concerns and showcases an agency’s commitment to improving roadway safety. An LRSP (or its equivalent) will be preferred or required for an agency to be eligible for future federal HSIP funds and other transporation projects.

Project Status
Staff to seek grant funds to implement LRSP, such as the Safe Street and Roads for All (SS4A) grant. SS4A grants have a 20% local match requirement.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
LSRP $ - $ - $ - $ -
Total: $ - $ - $ - $ - $ -
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 $ - $ 20,000 $ - $ - $ - $ - $ 20,000 Other -TBD - 60,000 - - - - 60,000
Total Funding: $ - $ 80,000 $ - $ - $ - $ - $ 80,000
Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
LRSP $ - $ 80,000 $ - $ - $ - $ - $ 80,000
Total Spending: $ - $ 80,000 $ - $ - $ - $ - $ 80,000
Recurring annual maintenance and operating costs, if applicable N/A

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 171 Capital Improve
ment Plan Summary and Funding Sources

ANNUAL SANITARY SEWER REPLACEMENT AND REHAB
Department: Public Works
Program: Sewer
Project Number: 487918-26
Initial funding year: Ongoing
Planned start date: Ongoing
Estimated completion date: Ongoing
Project Description
The main objective of the annual sanitary sewer replacement and rehabilitation program is to repair and improve defective sewer pipes in the Town’s sanitary sewer system, ensuring the uninterrupted conveyance of wastewater to the Palo Alto Regional Water Quality Control Treatment Plant (RWQCTP) through the collection systems of the Cities of Palo Alto and Los Altos. The selection of the sewer segments is based on the review and analysis of the first cycle of CCTV inspections of the Town’s sewer pipes, along with follow-ups from the Town’s sewer maintenance and operation contractor, West Bay Sanitary District.

The Regional Water Quality Control Board has placed an increased emphasis on reviewing sewer system capital improvement programs and operation/maintenance activities, requiring a higher annual sewer replacement rate for agencies with aging sewer collection systems. In alignment with this approach, Town staff recommends an annual average of $900,000 in capital expenditures to address the most problematic areas and to reduce the need for high-frequency cleaning required to keep the system operational and prevent sanitary sewer overflows (SSOs). The annual allocation will be validated, reviewed, and updated as needed during each budget cycle.

In March 2024, V.W. Housen & Associate was hired to develop an asset management protocol to more effectively and holistically determine capital improvement needs and projects. The study was completed in fall 2024.

Project Status
Construction of 2025 Sewer Rehabilitation Project to be completed by fall 2025.

Due to rising capital costs from Palo Alto and Los Altos and in order to maintain an annual budget of $900,000 for sewer capital projects, a new sewer rate study may be required in FY2025/26.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Sewer Rehab CIP $ 900,000 $ 434,421 $ 465,579 $ 465,579 Total: $ 900,000 $ 434,421 $ 465,579 $ - $ 465,579
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Sewer User Charges $ 465,579 $ 900,000 $ 1,150,000 $ 1,050,000 $ 1,050,000 $ - $ 4,615,579 Total Funding: $ 465,579 $ 900,000 $ 1,150,000 $ 1,050,000 $ 1,050,000 $ - $ 4,615,579 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Sewer Rehab CIP $ 465,579 $ 900,000 $ 1,150,000 $ 1,050,000 $ 1,050,000 $ - $ 4,615,579 Total Spending: $ 465,579 $ 900,000 $ 1,150,000 $ 1,050,000 $ 1,050,000 $ - $ 4,615,579 Recurring annual maintenance and operating costs, if applicable The maintenance and operating costs for the Town’s sanitary sewer system is included in the annual operating budget for the sewer program.

172 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improvement Plan Summary and Funding Sources
FY2024-26 Anticipated Sewer Capital Projects:

FY2024-26 Sewer Rehabilitation Projects$ 1,350,000.00
Manhole Cover Replacement Project$ 300,000.00
O’Keefe Pump Station - Control Panel Upgrade$ 100,000.00 Root foaming for sewer mains$ 50,000.00
Total$ 1,800,000.00

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 173 Capital Improve
ment Plan Summary and Funding Sources

WESTWIND COMMUNITY BARN IMPROVEMENTS
Department: Public Works
Program: Westwind Community Barn
Project Number: 437307-26
Initial funding year: Ongoing Program
Planned start date: Ongoing
Estimated completion date: Ongoing
Project Description
The annual Westwind Community Barn facility improvements program is designed to improve facility deficiencies and meet the the needs of Barn users. Each year, the Town and Concessionaire, Victoria Dye Equestrian (VDE), identify and prioritize potential improvements. The following projects were identified and prioritized:

1. Lower Arena: Replace and upgrade the existing perimeter fence and sprinkler system, improve site drainage, and regrade and improve the footing.

2. Upper Arena: Regrade and reconstruct the footing with a new textile and sand blend.

3. Installation of Footing Grid Systems in Remaining Five Paddocks: Rain causes water pooling and mud, making paddock grounds unusable. Installing footing grid systems or paddock slabs will help stabilize the grounds. Footing grids for 13 paddocks have been installed. Regrading and the installation of footing grid systems for the remaining five paddocks are estimated cost $60k for each paddock.

4. Paddock Retaining Wall/Fencing repairs: When installing or upgrading paddock footing grids, certain paddocks will also require repairs to their retaining wall/fencing.This involves reinforcing or replacing the posts and lagging boards.

5. Repair Footing Grids in Previously Upgraded Paddocks: Repair footing grids in paddocks that have previously been upgraded with grid systems.

6. Rehabilitation of Barn Exteriors: As funding allows, rehabilitate thelower half of 17 barn exterior doors, sliding doors, and the fence in the courtyard.

7. Addional Toilet: The Barn currently has one existing toilet and a room with a shower. As funding becomes available, adding an additional toilet to the shower room would be beneficial for camp participants, boarders, and event attendees.

8. Electrical Upgrade: Upgrades to the Barn’s electrical systems.

Project Status
The repair of the retaining wall/fencing, regrading, and installation of footing grid systems for one paddock were completed in FY2023-

24. For the Upper Arena, the current plan is to replace and upgrade the footing materials during the summer of 2025. Regarding the improvements needed at the Lower Arena, construction is also anticipated to begin in the summer of 2025, once authorized by the Council.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Paddock Footing $ 172,623 $ 40,280 $ 132,343 $ 132,343
Wall/Fencing 129,994 7,389 122,605 122,605
Lower Arena - -
Upper Arena - -
Drinking Fountain 15,000 - 15,000 15,000
Electrical Upgrade 40,000 - 40,000 40,000
Restroom Renovation $ 3,043 $ 3,043 $ - $ -

174 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Cell Tower Rental $ 54,354 $ 50,000 $ 50,000 $ 50,000 $ - $ 204,354 Westwind Barn Capital 240,000 240,000
CIP/ General Fund 50,000 50,000
Total Funding: $ 344,354 $ 50,000 $ 50,000 $ 50,000 $ - $ - $ 494,354 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Paddock Footing $ 132,343 $ 30,000 $ 30,000 $ 30,000 $ - $ - $ 222,343 Lower Arena $ - $ - $ -
Upper Arena - - -
Wall/Fencing 122,605 20,000 20,000 20,000 182,605
Electrical Upgrade 40,000 40,000
Drinking Fountain 15,000 15,000
Restroom Renovation - -
Feeding Pasture Fencing - -
Water line repairs - -
Site Drainage 34,406 34,406
Total Spending: $ 344,354 $ 50,000 $ 50,000 $ 50,000 $ - $ - $ 494,354 Recurring annual maintenance and operating costs, if applicable These projects are part of an ongoing maintenance program. Minor maintenance is the responsibility of VDE. Repairs above $500 are the Town’s responsibility.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 175 Capital Improve
ment Plan Summary and Funding Sources

MATADERO CREEK EROSION
Department: Public Works
Program: Storm Drain
Project Number: 467209
Initial funding year: FY 2011-12
Planned start date: Ongoing
Estimated completion date:

Q1 FY2025/26; Mitigation monitoring for
10 years
Project Description
The project aims to repair erosion along the edge of Page Mill Road between Baleri Ranch Road and Berry Hill Court at Matadero Creek.

This section of Page Mill Road is within Caltrans right-of-way. Due to the significant overall expense of the erosion repair project, the lengthy permitting process, and the risk of the travel lane being washed out, the project was divided into two phases.

Phase 1 stabilized the roadway and included a geotechnical investigation, topographic survey, design, construction, and inspection work.

Phase 2 will address the creek erosion repair, including environmental study, hydraulic study, permitting process with state and federal agencies, design, construction, inspections, and mitigation/monitoring work as required by the State Water Resources Control Board (Water Board).

Project Status
The cattails and sediments in Matadero Creek at Page Mill Road were removed in January 2023 due to flooding concerns from the atmospheric river storm events.

The Matadero Creek Bank Stabilization onsite project was first advertised in June 2024, and bids opened in July 2024. Four bids were received, and bid prices were at least 21% higher than the Engineer’s estimate. In July 2024, the City Council approved a resolution to reject all bids. Subsequently, the design was value engineered and improved without a new soldier pile retaining wall. In March 2025, the City Council approved the plans and specifications for the project to be advertised. The bids will be opened in May, and construction is anticipated to begin in July and be completed by November.

Water Board has certified the project and conditioned a mitigation and monitoring plan (MMP). The tributary area to Moody Creek at Byrne Preserve is the location for the offsite mitigation, which involves planting vegetation across 1.96 acres of the riparian corridor.

The offsite mitigation work at Byrne Preserve was completed in January 2025. Maintenance and monitoring of this offsite mitigation work will continue for ten (10) years as required by the Water Board.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Phase I $ 338,490 $ 338,490 $ - $ -
Phase 2 Design 429,800 404,169 25,631 25,631
Phase 2 Construction 716,000 716,000 716,000
Mitigation 300,000 69,008 230,992 230,992
Total: $ 1,784,290 $ 811,666 $ 972,624 $ - $ 972,624

176 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources
Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Drainage in-lieu $ 458,124 $ 458,124
CIP/ General Fund 514,500 514,500
Total Funding: $ 972,624 $ - $ - $ - $ - $ - $ 972,624
Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Phase 2 Design $ 25,631 $ 25,631
Phase 2 Construction $ 716,000 $ 716,000
Mitigation 230,992 230,992
Total Spending: $ 972,624 $ - $ - $ - $ - $ - $ 972,624 Recurring annual maintenance and operating costs, if applicable Upon completion, maintenance of the creek will be included as part of the ongoing drainage maintenance budget. There is no additional cost.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 177 Capital Improve
ment Plan Summary and Funding Sources

STORM DRAIN IMPROVEMENTS
Department: Public Works
Program: Storm Drain
Project Number: 457202
Initial funding year: FY 2023-24
Planned start date: Summer 2023
Estimated completion date: Ongoing
Project Description
Address deficiencies and replace aging storm drain pipes to minimize future failures, flooding, ground erosion, and damage to roadways caused by storm events. Use video inspections to assess the condition of aging corrugated metal storm drain pipes that are prone to failure throughout the Town and schedule replacements as part of the project. As part of this effort,the, Town’s storm drain system will be entered into the Geographic Information System (GIS) application to support better asset management. Staff will continue to access and identify annual needs for storm drainage improvements.

Project Status
Staff compiled an inventory of the Town’s existing storm drain system based on the 2004 Storm Drainage Master Plan, record drawings, and field visits. The Town also hired a contractor to record CCTV videos at two culverts to assess the pipe conditions: one is a 12-inch corrugated metal pipe (CMP) at Paseo Del Roble Drive, and the other is a 15-inch reinforced concrete pipe (RCP) on Fremont Road near Arastradero Road. This inventory of storm drain assets will help identify critical locations and prioritize improvements.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2025
Available
Budget
Return to
Storm Drain
Fund
Remaining
Budget
Design/Construction $ 450,000 $ 262,158 $ 187,842 $ 110,000 $ 77,842 Total: $ 450,000 $ 262,158 $ 187,842 $ 110,000 $ 77,842 Project Funding Estimate
Funding Source
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Drainage in-lieu $ 77,842 $ - $ - $ - $ - $ 77,842
Total Funding: $ 77,842 $ - $ - $ - $ - $ - $ 77,842
Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Design/Construction $ 77,842 $ - $ - $ - $ - $ 77,842
Total Spending: $ 77,842 $ - $ - $ - $ - $ - $ 77,842
Recurring annual maintenance and operating costs, if applicable Staff continues to maintain Town storm drain facilities throughout the year.

178 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources

VEHICLE AND EQUIPMENT REPLACEMENT (NEW)
Department: Public Works
Program: Vehicle and Equipment
Project Number: NEW
Initial funding year: FY2025/26
Planned start date: Summer 2025
Estimated completion date: Ongoing
Project Description
One of the recommended strategies in the Town’s Climate Action Plan (last updated in October 2021) is the Green Fleet Program to consider and prioritize EVs for the Town fleet when possible to reduce greenhouse gas (GHG) emissions. The other recommended strategy is to transition Town fleet to renewable diesel to further cut emissions. Many of the Town’s maintenance vehicles and equipment may soon require major services and should be considered for replacement, such as the 2003 Dodge Dakota, 2008 Ford Ranger, 2010 John Deere tractor, 2010 John Deere backhoe, and 2009 Cariton Chipper. The Vehicle and Equipment Replacement Policy recommends replacements at 13 to 15 years of service, and many of Town’s vehicles and equipment have been in operations longer.

The Town would also need to comply with the Advanced Clean Fleet Regulation of the California Air Resources Board (CARB), which requires all purchase of vehicles to be zero-emissions vehicles (ZEV’s) starting 2027 and all internal combustion engine vehicles to be retired after 13 year of service.

This projet would be funded by the Vehicle and Equipment Replacement Reserve.

Project Status
In FY2024/25, the City Council approved the replacement of the Town’s F250 truck not to exceed $120,000 and purchase of two small EVs not to exceed $80,000. For FY2025/26, staff recommends the replacement of the 2003 Dodge Dakota with a ZEV. Staff anticipates replacement of at least one truck or equipment each fiscal year for the next five years.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
February 2025
Available
Budget
Return to
General Fund
Remaining
Budget
Vehicle and Equipment $ - $ - $ - $ -
Total: $ - $ - $ - $ - $ -
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 $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Total Funding: $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Project Spending Estimate
Project Spending
Remaining
Budget
2025-26
Planned
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
Project
Total
Vehicle and Equipment $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Total Spending: $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Recurring annual maintenance and operating costs, if applicable There will be routine vehicle and equipment maintenance anticpated. The maintenance costs will be lower with new vehicles/equipment and ZEV’s.

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Town Policies

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 181 Town Policies
Financial Policy
Proposed for City Council Adoption on June 26, 2025
Resolution XX-XX
This document establishes policies and practices for the Town of Los Altos Hills that provides financial information and manages its financial resources. As well as establishing and maintaining prudent fund balance levels, financial reporting, and investment policies that are in accordance with State Law. Formally adopted financial policies assist elected officials and staff in saving time and energy in making financial decisions, promoting public confidence, and the development of sound fiscal management practices.

In contrast to larger public agencies, the Town of Los Altos Hills is a small town as measured by geography, population, staff, the absence of commercial businesses, and employees who perform fire, policing, water, and sewer services (which are provided by independent third parties.) It has a volunteer, resident elected, five-member Council who are subject to term limits and operates under a Council – City Manager form of government. Town has many volunteer resident committees appointed by Town Council to limited terms, who advise the Council on financial matters, recreation and hospitality events, land development, technology and environmental issues.

Town staff perform planning and building functions, financial functions, maintenance of pathways, and contract for policing, trash removal, street maintenance, legal services, electronic recordkeeping, and recurring specialty services such as review of resident submitted building plans, town news media, treasury, insurance, and other occasional specialty needs.

While these policies will be updated intermittently, they provide the basic framework for many of the financial decisions that will be addressed by the Town. Support long-term planning and enhance the Town’s effectiveness.

This policy will be reviewed annually during the ACFR process to ensure conformance with the Town’s goals and objectives and compliance with any changes in regulations or standards. In conjunction with the annual policy review, the Administrative Services Director will include updated calculated thresholds, review of use and replenishment of the reserves, and any anticipated changes to be included in the annual ACFR preparations.

Financial Controls
Collection of revenues and disbursement of costs and expenses is performed by Town finance staff. An independent audit is performed annually along with the publication of an annual financial report. in accordance with GASB (Governmental Accounting Standard Board) , that includes a description of the Town’s accounting policies (in footnote 1.) An annual or biennial budget is prepared following a format recommended by the Government Financial Officers Association (GFOA) and prepared by Town Staff for presentation to Town Council after review by the Town’s Finance and Investment Committee. With exception of personnel records, Town records are public and are public information available upon request.

Investments
Most of the Town’s funds are maintained, invested, and managed by independent third parties who report monthly and quarterly to the Town Council who, in turn, delegate some of the review responsibility to Staff and the Town’s Finance and Investment Committee. Investments are made in compliance with the Town’s Investment policy which is reviewed annually by the Town’s Finance and Investment Committee.

182 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Town Policies
Financial records
The collection of receipts is recorded and reviewed by Town staff before being deposited in the Town’s bank accounts. Disbursements are prepared by the responsible Town staff, reviewed by Town finance staff, and signed by two independent check signers who are either senior employees or Council members. Bank reconciliations are prepared monthly. Other records are maintained and independently backed up offsite.

Specialty third party financial service providers
Payroll is independently prepared and processed by a third-party specialty service. Employee benefits are managed by responsible third-party health care providers, pension benefit managers, and related periodic reports are reviewed by Staff, the Town’s Finance and Investment Committee and Town Council. Liability insurance services are provided by a Joint Powers Authority who report annually, and town staff attend periodic meetings in an oversight role. Electronic records are maintained offsite by an independent service. Physical asset inventories are conducted annually by Town staff and reviewed as part of the Town’s annual financial audit. The Town maintains employee fidelity insurance purchased from its Joint Powers Authority provider.

Overall controls
The foregoing briefly describes a web of interrelated services performed periodically on annual, quarterly, and monthly cycles. In addition, reserves are provided for several financial risks subject to review by the Town’s Finance and Investment Committee and Town Council. The Town’s employees develop and maintain job descriptions and procedures the objective of which is to enable smooth transition when employee turnover occurs. Compensation surveys are used to assist management and Council in maintaining competitive compensation. Despite its small size, the Town maintains records, produces financial reports, and utilizes financial controls that are comparable to those performed and maintained by larger governmental agencies.

This policy is reviewed and assessed by the Town’s staff, the Finance & Investment Committee, and elected officials and will also be updated annually, if necessary, to reflect any changes within the requirements.

This document discusses the important elements of financial management at the Town of Los Altos Hills, in an all-in-one format and organized into the following areas of discussion:

General Financial Principles Cash Management
Operating Budget Debt Management
Revenues Capitalization Assets
Expenditures Financial Reporting
Capital Improvement Program
General Financial Principles
It is the overall policy of the Town of Los Altos Hills to:
> Provide financial information in a relevant, thorough, timely fashion, and in a format that effectively communicates financial status to City Council, citizens, and Town employees. > Manage its financial resources in a responsible and planned manner. > Establish and maintain prudent fund balance levels.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 183 Town Policies
> Maintain financial reporting in compliance with current governmental accounting standards. > Promote and implement a relevant and strong system of internal financial controls to manage significant risks and monitor the reliability and integrity of financial and operating reporting. > Promote constructive and proactive financial decision making. > Integrate long-term operating and capital resources planning. > Allow for uncertainties and maintain a posture of financial flexibility. > Develop programs in a manner that supports the City’s long-term ability to cover costs and provide the level and quality of service required by its citizens.
> Managing debt responsibility.
> Establish and maintain investment policies in accordance with State law.

Operating Budget
Budget Adoption
The City Council shall adopt the Town’s annual or biennial budget no later than June 30 of each year. The City Manager is responsible for developing and presenting either an annual or biennial budget, as appropriate.

A balanced provisional operating budget will be submitted to the City Council for review and adoption. Total projected expenditures must not exceed estimated revenues, excluding internal overhead allocations. If necessary, the City Council may approve the planned use of accumulated fund balances from prior years to support specific appropriations within the budget.

No funds may be expended for a new fiscal year until the City Council has formally adopted the budget for that year.

One-time revenue sources shall not be relied upon to fund ongoing operations, ensuring structural financial sustainability.

Budgetary Control and Adjustments
Budgetary control is maintained at the fund level. The City Manager has the authority to approve budget transfers between departments or programs within the same fund, provided that such changes do not increase the fund’s total appropriation. However, the following actions require City Council approval:
> Transfers between funds
> Overall increases in fund appropriations
> Increases in capital project budgets
Transfers between departments should be reported to the City Council as part of periodic budget updates, such as during the mid-year review or at the start of a new budget term.

Department heads are accountable for developing and managing their departmental budgets. Budgetary authority is maintained at the department level. For departments operating across multiple funds, expenditures must remain within the appropriate allocation for each fund.

Encumbrances, Lapsed Appropriations, and Carryforwards
Operating expenditure appropriations that are not spent within the fiscal year shall lapse at year-end, with the following exceptions:

184 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Town Policies
> Encumbrances or legally binding commitments (e.g., purchase orders) issued during the fiscal year but not completed by year-end
> Capital improvement projects or multi-year grant programs with approved life cycles extending beyond one fiscal year
For contracts that remain incomplete at fiscal year-end, the remaining balance must be reappropriated in the subsequent budget cycle.

Basis of Budgeting and Financial Reporting
Governmental funds are budgeted on a modified accrual basis, while proprietary and fiduciary funds follow the full accrual basis of accounting. The Town’s Annual Comprehensive Financial Report (ACFR) is prepared in accordance with Generally Accepted Accounting Principles (GAAP), and the budget is developed in conformity with these standards.

Appropriations Limit Compliance
The Town’s budget must comply with the annually calculated Appropriations Limit as required under Article XIIIB of the California Constitution. A resolution establishing the Town’s appropriations limit shall be adopted annually by the City Council in accordance with State law.

Revenues
The Town will seek out, apply for, and effectively administer federal, state, and other grants that address the Town’s current operating and capital priorities.

Operating departments are to review existing fees periodically and recommend adjustments to fees, as necessary, to reflect changing direct and indirect costs of providing such services. Independent user-fee studies should be performed and updated periodically (three to five years) to ensure the proper balance of costs and service charges.

The Town should strive to cover the full cost of providing non-tax and discretionary fee-based service operations except to the extent that the City Council approves defined subsidy levels by program area.

Operating departments are to periodically review public services to identify and determine those appropriate for fee collection.

Enterprise operations will be self-supporting and shall reimburse the General Fund for any and all material and services provided on their behalf.

Expenditures
Expenditures are to be budgeted and controlled to not exceed estimated revenues plus the approved and planned use of fund balances accumulated in prior years.

The Town will conduct a mid-year financial status review to determine if projected revenues and expenditures meet budgeted levels. If an operating deficit is projected at year-end, the Town should evaluate the need for immediate corrective and/or mitigating actions, including operating or capital expenditures reduction and /or activate the use of established contingency balances. The deferral of essential and scheduled operational expenditures into the following fiscal year or the use of short-term loans and transfers to balance the budget should be avoided.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 185 Town Policies
Capital Improvement Plan
The Town will develop and maintain a five-year Capital Improvement Plan (CIP) to be updated annually in conjunction with the operating budget. The CIP should reflect the current and changing needs of the community as well as enhance the community’s quality of life.

Cash Management
The Financial and Investment Committee will review the Town’s Investment Policy annually and make recommendations to the City Council when appropriate.

The City Manager may delegate to the Administrative Services Director/Finance Director the responsibility of investing Town funds in accordance with the Town’s Investment Policy. Additionally, the City Manager may authorize the Administrative Services Director/Finance Director to present quarterly investment reports to the City Council, providing a summary of the portfolio’s status and its compliance with the Investment Policy’s requirements.

Debt Management
The Town should plan the use of debt in a manner that sustains financing payments at manageable levels. The Town will seek to maintain a high credit rating through sound financial practices as a basis for minimizing borrowing costs.

The Town will make every effort to use pay-as-you-go financing for capital improvement projects. Debt financing for a project can be used if the overall project’s cost exceeds anticipated available resources and/or if financing terms are favorable. The Town will monitor all forms of debt annually in conjunction with the budget preparation process and report concerns and remedies, if necessary, to the City Council. The Town will diligently monitor its compliance with bond covenants.

The Town will not issue long-term debt to finance current operations. Debt financing should only be used for longterm capital improvement projects with a useful life exceeding the term of the financing and for which the project revenues or specific identified revenue sources are sufficient to service the long-term debt.

The Town may use a lease-purchase method of financing for equipment if the lease rates are more favorable than the Town’s expected overall investment rate of return.

The Town will not incur general obligation indebtedness for public improvements which exceed in aggregate 15% of the assessed value of all real and personal property of the Town as specified in the California Government Code Section 43605.

Capitalization Assets and Leases
The Town’s operations require the purchase and construction of certain assets that are used over a long-term period to provide services to the community. To facilitate the proper recording of these assets, the department has established the following procedure.

Acquisition
The acquisition of capital assets is planned in the Town’s budget on an annual basis. Public projects are budgeted in lump sums based on recommendation from the City Manager. The City Manager oversees the various components of the public project to ensure overall budget compliance. Under direction from the City Manager, the Public Works Director has the authority to make necessary changes from the authorized plans, provided the project will not

186 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Town Policies
exceed the approved budget. With the exception of public works projects, the acquisition of all other capital assets may be managed by the Administrative Services Director under the direction of the City Manager.

Accounting & Tracking
It is the Finance and Administrative Services Department’s policy to record staff time, supplies, services, and applicable overhead to public projects. Public projects are budgeted in distinct capital project funds and tracked by unique account numbers. All costs required to acquire a public project are recorded to the respective account number.

The Administrative Services Director/Finance Director maintains a register of capital assets that is in conformance with generally accepted accounting principles. The register records the asset’s identification (e.g., name, vehicle identification, etc.), year of acquisition, acquisition cost, useful life.

Depreciation Schedule
Capital assets are categorized into one of several categories, each with estimated useful lives. The Administrative Services Director/Finance Director determines the useful life of each item based on historical practice and input from the appropriate department head where necessary. Assets are classified as “capital assets” on the Town’s financial statements and include any tangible goods with an acquisition cost of $25,000 or more and a useful life greater than three years. Depreciation/amortization will be recorded on a straight-line basis (effective rate of interest method for leases) over the following estimated useful lives:

Infrastructure 20 to 50 years
Structures and improvements 10 to 30 years
Vehicles 5 to 10 years
Equipment 3 to 10 years
Leases term of the leases
Disposal of Capital Assets
At the discretion of the City Manager, obsolete or unused capital assets may be recommended for disposal at any time. The Administrative Services Director/Finance Director is responsible for ensuring that all asset disposals comply with the provisions of the Municipal Code.

Leases
The Town is to record the depreciation of equipment, buildings and facilities, infrastructure, and leases as follows and in line with internally established capitalization guidelines:
> Capitalization Thresholds
• Land purchases at any value
• Equipment - $25,000
• Buildings and facility improvements - $100,000
• Leases - $100,000
The interest rate used for GASB 87 leases is the commercial real estate secured loan rate as of July 1st of the commencement year of the lease if there is not an explicit interest rate in the lease agreement.