Los Altos Hills City Council
June 26, 2025

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 1 Reserve Policy
Proposed for City Council Adoption on June 26, 2025
Resolution XX-XX
Purpose
This policy establishes reserve targets for the Town’s governmental funds to ensure financial stability, operational continuity, and long-term planning. Reserves provide:
> Working capital for operations and maintenance
> Funding for equipment, technology, and capital needs
> Resources to meet legal, regulatory, and contractual obligations > A buffer against revenue shortfalls and unforeseen emergencies Maintaining adequate reserves enhances transparency, supports credit ratings, and helps manage risk through economic or operational disruptions.

Policy
This policy ensures that the Town maintains sufficient cash flow to meet current and future obligations while providing transparency to the public. By establishing targeted reserve levels for each of the Town’s governmental funds, the policy supports financial stability, risk mitigation, and long-term planning.

Reserves are essential to address both planned and unplanned needs:
> Planned needs may include:
• Funding operating requirements
• Meeting debt service obligations (if any)
• Addressing pension and other post-employment benefit (OPEB) liabilities > Unplanned needs may include:
• Offsetting revenue shortfalls
• Covering unanticipated expenses
• Responding to emergencies or disasters
Establishing formal reserve targets helps the Town:
> Maintain adequate working capital
> Prepare for financial contingencies and emergencies
> Support strong credit ratings and reduce borrowing costs This policy defines specific reserve accounts by outlining their purpose, target thresholds, allowable uses, and replenishment procedures. It distinguishes between committed reserves, which are formally designated by City Council for specific purposes, and assigned reserves, which offer greater flexibility and may be used for a range of Town-identified needs. Both committed and assigned reserves may be established, modified, applied, or eliminated by City Council resolution. Committed reserves are restricted to the purposes explicitly stated at the time of designation. In contrast, assigned reserves may support multiple related activities, provided they align with the stated intent of the reserve.

ITEM 7B Attachment 4a

2 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Policy Review and Monitoring
This policy will be reviewed annually during the budget process to ensure alignment with the Town’s financial goals and compliance with applicable regulations. As part of the annual review, the Administrative Services Director/ Finance Director will:
> Recalculate reserve thresholds based on the most recent financial data > Evaluate reserve usage and replenishment
> Recommend any policy or funding adjustments for inclusion in the budget In addition to the annual review, reserve balances will be monitored mid-year and presented to the City Council as part of the mid-year financial update to promote transparency and timely decision-making.

Committed Reserves

1. Pension Contribution Reserve
Purpose of the Reserve:

The Pension Contribution Reserve is to set aside funds for the Town’s estimated unfunded liability. CalPERS prepares an annual Actuarial Report for each of the Town’s three pension plans. This reserve is for amounts not included in the Accrued Liability and represents the difference between the currently applied Discount Rate and the lowest Discount Rate measured by CalPERS in its most recent actuarial report. This difference is updated to the most recent past fiscal year end as reported in the related ACFR Pension Footnote.

Threshold of the Reserve:

The Pension Contribution Reserve shall maintain a maximum threshold based on the CalPERS annual actuarial report for each of the Town’s three pension plans. The reserve threshold amount is calculated by the following:
the difference between the accrued liability at the current discount rate and the accrued liability calculated using the discount rate that is one percentage point lower than the current rate, as shown in the most recent ACFR pension footnote.

The balance of the Town’s Section 115 Pension Trust shall be included in the calculation of the Pension Contribution Reserve. The sum of the Pension Contribution Reserve and the Pension Trust balance shall be used to evaluate compliance with the policy threshold.

Usage of the Reserve:

Adjustments to the reserve will result from the discount rate changes in succeeding years per the CalPERS annual report per the Analysis of Discount Rate Sensitivity as updated in the most recent ACFR Pension footnote.

Replenishment of the Reserve:

During the annual budget cycle, the Pension Contribution Reserve will be adjusted to reflect the new threshold amount as described in the preceding Threshold of the Reserve section. These adjustments will be approved by the City Council as part of the annual budget cycle.

2. Technology Reserve

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 3 Purpose of the Reserve:

The Technology Reserve is to set aside funds for the Town’s future Audio and Visual equipment and software replacement needs.

Threshold of the Reserve:

The threshold will be calculated based on $460K, the budgeted amount of the AV system, and will be $46K for the following 10 years for upgrades and replacement of the equipment.

Usage of the Reserve:

Eligible expenditures will be for AV System and software to be upgraded or replaced throughout the fiscal year. These expenditures will be determined on an annual basis.

Replenishment of the Reserve:

The Technology Reserve will be adjusted up or down, as necessary, to equal the threshold. These expenditures will be determined on an annual basis.

3. Vehicle and Equipment Replacement Reserves
Purpose of the Reserve:

The Vehicle and Equipment Replacement Reserve is to set aside funds for the Town’s current and future vehicle and equipment replacement needs. The Town maintains a vehicle and equipment replacement schedule for all Town vehicles and equipment. This schedule is updated as equipment is added or removed from service.

Threshold of the Reserve:

The threshold of the Vehicle and Equipment Replacement Reserve will be calculated each year during the annual budget cycle. This threshold will be the sum of the amount determined for each piece of equipment on the Vehicle and Equipment replacement schedule based on future replacement costs of the item divided by its useful life and multiplied by the number of years in service, but in no event greater than the future replacement cost.

Usage of the Reserve:

Eligible expenditures include vehicles and/or equipment replacements purchased throughout the fiscal year.

These expenditures will be determined on an annual basis.

Replenishment of the Reserve:

During the annual budget cycle, the Vehicle and Equipment Replacement Reserve will be adjusted up or down, as necessary, to equal the threshold. Any adjustments will be approved by the City Council as part of the annual budget cycle.

4. Facilities Replacement Reserves
Purpose of the Reserve:

The Facilities Replacement Reserve is to set aside funds for the Town’s current and future facility improvement and replacement needs. The Town maintains a facility schedule for all Town facilities. Additions to the facilities schedule occur when Town facilities are either improved or new Town facilities are added. Deletions occur as Town facilities are demolished and removed from service.

4 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Threshold of the Reserve:

The threshold of the Facilities Replacement Reserve will be calculated each year during the annual budget cycle.

This threshold will be comprised of two parts. For existing buildings, it will be the cumulative depreciation of the buildings listed in the fixed asset schedule as reported in the most recent ACFR Capital Asset Footnote.

Added to this amount is any remaining unspent funds appropriated to construct additions or improvements to facilities.

Usage of the Reserve:

Eligible expenditures include facilities improvements, renovations, or demolitions that occur throughout the fiscal year. These expenditures will be determined on an annual basis.

Replenishment of the Reserve:

During the annual budget cycle, the Facilities Replacement Reserve will be adjusted up or down, as necessary, to equal the threshold. Any adjustments will be approved by the City Council as part of the annual budget cycle.

5. Disaster Contingency Reserve:

The Disaster Contingency Reserve is to set aside funds for emergencies that may arise within the Town that have not been federally and or state declared disasters. To constitute a Town emergency, the disaster or emergency would be natural disasters (i.e. earthquakes, landslides, flooding) or temporary service outages of Town facilities and infrastructure (i.e. extensive debris cleanup from wind events that prohibits travel on Town roads). To be declared a Town Emergency, the Emergency Operations Center and team would be activated for any length of time. Town emergencies are smaller in nature than presidentially declared federal disasters and governor declared state disasters and are typically contained within the Town boundaries.

Threshold of the Reserve:

The Disaster Contingency Reserve shall maintain a balance not less than $1,250,000. This amount shall be adjusted up or down, as necessary, each year. Adjustments will be based on the risk assessment performed by the Town’s emergency services personnel.

Usage of the Reserve:

The City Manager is the Director of Emergency Services. In the event of a Town emergency, the City Manager would determine eligible expenditures allowable for use of the reserve on a case-by-case basis. If expenditures are incurred, use of the reserve will be considered on an annual basis.

Replenishment of the Reserve:

During the annual budget cycle, the Disaster Contingency Reserve will be adjusted as necessary to equal the threshold. Any adjustments will be approved by the City Council as part of the annual budget cycle.

6. Capital Projects Reserve
Purpose of the Reserve:

The Capital Projects Reserve is to set aside funds to start or complete projects for which the Council has previously appropriated funds, but the projects have not been started or completed.

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 5 Threshold of the Reserve:

The Capital Projects Reserve shall maintain a balance equal to the unused prior appropriated funds as shown in the list of capital projects prepared as part of the annual budget process. This amount shall be adjusted up or down, as necessary, each year.

Usage of the Reserve:

The Capital Projects Reserve will be used to fund the completion of the prior appropriated projects as shown in the list of capital projects in the budget.

Replenishment of the Reserve:

During the annual budget cycle, the Capital Projects Reserve will be adjusted as necessary to equal the threshold. Any adjustments will be approved by the City Council as part of the annual budget cycle.

Assigned Reserves

1. General Fund Stabilization Reserve
Purpose of the Reserve:

The General Fund Stabilization Reserve is to establish a minimum unassigned fund balance and to set aside funds for the Town’s current and future operational needs in the event of economic downtowns or unexpected expenditures.

Threshold of the Reserve:

The General Fund Stabilization Reserve shall maintain a maximum threshold that is equivalent to three months of average operating expenditures in the general fund. Operating expenditures are defined as those expenditures before transfers to other funds and exclude capital expenditures (less that portion of Community Development costs that are recovered through charges for services). The figures from the most recent ACFR shall be used for calculating the threshold amount.

Usage of the Reserve:

Allowable expenditures for use in this reserve shall be determined on a case-by-case basis. Examples of allowable expenditures include, but are not limited to, significant economic downturn that result in diminished property taxes revenues, thus resulting in a need for use of the reserve to balance the annual general fund budget. These expenditures will be recommended by the City Manager and approved by the City Council.

If expenditures are recommended and approved, use of this reserve will be considered on an annual basis.

Replenishment of the Reserve:

During the annual budget cycle, the General Fund Stabilization Reserve will be reviewed and updated based on the most recent audited and issued Annual Comprehensive Financial Report. Any adjustments will be approved by the City Council as part of the annual budget cycle.

ITEM 7B Attachment 5

TOWN OF LOS ALTOS HILLS

MEMORANDUM
DATE: June 18, 2025
TO: Honorable Mayor and City Council
FROM: Thomas Leung, Finance Director
APPROVED: Peter Pirnejad, City Manager
RE: Follow-Up on Budget Questions from May 22, 2025 Joint Study Session BACKGROUND:

The annual budget serves as the Town’s primary financial planning tool, aligning resources with priorities and establishing the operating and spending framework for the fiscal year.

As required by Municipal Code 2-3.219, the City Manager is responsible for presenting a proposed budget to the City Council that ensures adequate funding for ongoing services and operations.

The proposed FY 2025–26 budget has undergone multiple reviews leading up to adoption, including a preview to the FIC on May 5, a joint City Council/FIC study session on May 22, and a follow-up FIC discussion on June 2.

Answers to questions from the City Council and FIC (or individuals therein) are provided below.

DISCUSSION:

Budget Changes
Q1: What changes have been made to the budget?
A: See full list of adjustments made in May 19 and June 18 versions, including updates to fund balances, positions, revenue estimates, and contract services.

May 19, 2025 version:
• Town-wide Fund Summary (Page 46)
o Added Pension Trust (restricted)
o Updated beginning and ending fund balances
• Town-wide Financial Summary (Page 47)
o Updated beginning and ending fund balances
• Financial and Personnel Allocations Summaries (Page 43) o Updated Miscellaneous Pathways Budget (-$50k)

Memo to City Council
FY 2025-26 Proposed Budget Informational Update
June 18, 2025
• Capital Improvement Plan Summary and Funding Source (Page 140) o Updated Miscellaneous Pathways Budget (-$50k)
June 18, 2025 version:
• Update RMRA and Gas Tax revenue estimates (+$11.8K)
• Convert Assistant Community Development Director to 2 Planners (+$151.3K) • Remove Law Enforcement consultant (-$60K)
• Remove West Valley Substation budget (-$30K)
• Update private security budget (+$50K)
• Update Bank Fees estimate (-$20K)
• Update Emergency Services Manager budget (-$30K)
• Update Sewer Assessment Charges revenue (+$167K)
• Update Special Events revenue (+$17.5K)
• Update Parks revenue (+$51.7K)
• Update Rentals revenue (+$57.1K)
• Update Water Franchise Fees Revenue (+14K)
• Allocate investment income to all funds (allocate $232K to other funds in FY 2025-26)
• Add Fire Services consultant (+$35K)
• Update and Allocate Unrealized Gain/Loss to all funds • Incorporate updated Cost Allocation Plan – TBD
• Alternative Site Study – TBD
Q2: What are the major FY’25 Budget vs. Actual variances, and what are the implications for FY’26?
A: Staff will address these variances in the ACFR and mid-year update. Revenues are expected to come in higher and expenditures lower than projected in the FY 2024–25 budget.

Q3: Were there mid-year changes to the FY’25 Budget that should be documented or adjusted for before year-end?
A: Yes, the City Council approved the purchase of a utility truck using funds from the Vehicle and Equipment Reserve and increased the budget for the Housing Element.

Q4: Why do total expenditures not equal total revenues in some departments? Why is General Fund support no longer shown at the department level like prior years? A: In prior budgets, a “General Fund Support” line was added or allocations were adjusted to make departmental revenues match expenditures. For FY 2025–26, we are following best practices by showing actual revenues and expenditures. Any shortfall for General Fund departments is funded by General Fund resources and reflected at the fund level, rather than forcing revenues to match expenditures within each department.

Revenues
Q5: If a new pathway impact fee is implemented, will the budget be updated? A: Yes, revenue projections will be updated accordingly in future budget cycles or through mid-year amendments.

Memo to City Council
FY 2025-26 Proposed Budget Informational Update
June 18, 2025
Q6: Are General Fund revenue assumptions for FY’26 realistic (e.g., 5.7% Property Tax increase, Use of Money, Water Franchise Fees)?
A: Yes, the revenue assumptions are reasonable. The 5.7% Property Tax growth aligns with projections from the Santa Clara County Assessor’s Office and HdL, the Town’s property tax consultant.

Use of Money projections are realistic. Investment income continues to perform well due to elevated interest rates and the addition of a sweep account that captures earnings on idle cash balances. However, investment income remains sensitive to monetary policy shifts. While the Federal Reserve has held rates steady through mid-2025, market consensus now anticipates three quarter-point rate cuts beginning in September 2025, driven by moderating inflation and signs of softening in the labor market. The Town’s investment income projections incorporate these anticipated reductions, consistent with current futures market expectations.

For FY 2025–26, interest earnings are projected using varying assumptions to reflect each investment type’s sensitivity to rate changes. CAMP is budgeted at 3.75%, below its current 4.15% yield, with a weighted average maturity of 995 days that helps preserve higher returns as rates decline. LAIF is budgeted at 2.9%, below its current 4.3% yield, with a 233-day maturity that makes it more sensitive to rate cuts. The Wells Fargo Sweep account is budgeted at 2.6%, below its 4.2% yield and 43-day maturity, and is expected to reprice quickly with market changes. This approach balances strong current performance with a realistic outlook for declining yields. Total investment income is projected to be $961,000.

Water Franchise Fees have been increased to align with current year actuals.

Q7: What is the status of ERAF volatility risk, and how is it budgeted? A: The Town is monitoring Excess ERAF closely. A court date is set for September 30, 2025, and the State Controller has not yet begun an audit of Santa Clara County.

Although up to 18% of ERAF revenue may be at risk, no budget adjustment has been made at this time.

Q8: Should unrealized investment gains be included and are interest earnings allocated appropriately across funds?
A: Unrealized investment gains are excluded from the budget, in line with best practices, as they do not represent actual, spendable income. Interest earnings are proportionally allocated across all funds based on average balances. Unrealized gains and losses are reported in prior year actuals to reflect full investment performance, which is consistent with the Annual Comprehensive Financial Report (ACFR).

Q9: Is Planning and Building revenue reasonable based on FY’25 actuals? A: FY 2024-25 building revenue is currently lower than in prior years; however, not all revenue owed to the Town has been collected or recorded to date. Revenues are expected to increase in FY 2025-26 due to higher collection efficiency, continued development activity, and implementation of updated fees following the new fee study. The addition of a Management Analyst in the Community Development Department will further improve cost recovery through better tracking, billing, and timely revenue collection. Staff will

Memo to City Council
FY 2025-26 Proposed Budget Informational Update
June 18, 2025
continue to monitor trends and adjust projections as needed. FY 2024-25 planning revenue is expected to increase in FY 2025-26 due to implementation of updated fees following the new fee study. Currently, planning fees are below the cost recovery target.

Q10: Why is Playing Field and Special Events revenue so low in FY’25? A: Estimated FY 2024–25 revenues for Playing Field and Special Events have been updated.

Q11: Are Encroachment Fees collected and recorded appropriately? Where are they shown?
A: The Encroachment Fees are recorded under Fund 046 Charges for Services.

Q12: Are all appropriate revenues and transfers included in the Sewer Fund (e.g., assessment charges, Town connections, school district contributions)? A: Yes, all appropriate revenues and transfers are included in the Sewer Fund.

Q13: Why is “Use of Money and Property” revenue missing from the Sewer Fund? A: Use of Money and Property revenue has now been allocated to all funds.

Department Budgets
Q14: How much is budgeted for legal costs?
A: Legal costs are distributed across departments. Total legal spending will depend on activity in areas such as housing, code enforcement, and special projects.

Q15: How much have we spent on legal costs in FY 2024-25? A: The chart below illustrates legal expenditures over the past five years.

For FY 2024–25, total legal expenses as of May 31, 2025 are projected to be approximately $736,000. This estimate includes both general legal costs and departmentspecific legal expenses.

Department legal expenses have increased in FY 2024–25—primarily due to litigation related to the Housing Element and Builder’s Remedy applications.

Memo to City Council
FY 2025-26 Proposed Budget Informational Update
June 18, 2025
Q16: Are legal costs truly down, or just moved into department budgets (e.g., Housing Element legal fees)?
A: Pass-through and department-specific legal expenses are included in each department’s overall legal costs. Pass-through costs are billed directly to the applicant.

In FY 2025-26, general legal expenses have decreased to align with prior year actuals.

Housing Element legal costs are also expected to be lower in FY 2025-26.

Q17: What is the $300K–$900K range for pathway-related projects under Council Priorities?
A: These are placeholder estimates; final costs will depend on the scope and direction provided by the Pathways Committee.

Q18: What is the $600,000 for traffic enforcement?
A: This amount reflects a dedicated traffic enforcement deputy under contract. While it is allocated for traffic enforcement, the funds may also be used for other sheriff services as needed.

Q19: What is the budget for ‘Our Town’ spent on?
A: The amount includes writing, layout, printing, and mailing of the publication. Of this, $25,000 is for design and $24,000 for printing.
$181,096
$288,625
$452,813
$687,824
$410,073
$735,757
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Redwood Public Law/Meyers Nave Invoices

Memo to City Council
FY 2025-26 Proposed Budget Informational Update
June 18, 2025
Q20: Is the KMVT contract and Emergency Notification Study funding justified? A: The Town’s decision to contract with KMVT was driven by the need for professional, reliable, and high-quality video services. It was a 2023 City Council Work Plan item.

The emergency notification study, which was recommended by the Emergency Preparedness and Response Committee, will enhance public safety by improving the reach, reliability, and effectiveness of emergency alerts during events such as evacuations. It is a 2024 City Council Work Plan item.

Q21: Why does personnel expenses increase 48%? Why does Town Center professional services decline 68%?
A: Personnel costs increased due to additional staffing allocated to the Town Center, while professional services declined because software expenses previously recorded under 6208–Programming and Computer (Professional Services) were reclassified to 6313–Computer Software (Operations). This improves accuracy by categorizing software as an operational expense rather than a professional service.

Q22: How is the maintenance crew allocated across departments, and are allocations to Building and Sewer accurate?
A: The allocations for the Public Works maintenance staff are estimates for the year based on work performed in previous fiscal years and work anticipated for the upcoming year.

Q23: Is standby pay for Corporation Yard staff authorized and reasonable? A: Standby pay for Corporation Yard staff is authorized in accordance with the Town’s personnel policies and operational needs. During the wet season (October through April), standby pay is provided to one maintenance employee per week on a rotating basis to ensure emergency response coverage.

Q24: Revenues are also down because Planning Entitlement fees are artificially low and their percentage of Building fees are also low. What does this mean? Fees are too low?
A: Yes, current Planning fees fall significantly short of cost recovery targets established in the Town’s fee schedule, contributing to the overall shortfall in development-related revenues.

Q25: How is crew charged for maintaining playing fields. Is this through salaries? A: Yes, the crew is charged for maintenance through salaries.

Q26: How much was relocated from Town Center to recruitment in Finance? A: $10,000 for recruitment and $5,000 for training was moved from Town Center to Finance.

Q27: Why does Finance operations expense increase by 112%? A: A total of $15,000 was transferred from the Town Center budget for recruitment ($10,000) and training ($5,000). Additional appropriations were added for software:
$23,100 for Gravity budgeting software, $27,000 for ADP payroll software, and $8,000

Memo to City Council
FY 2025-26 Proposed Budget Informational Update
June 18, 2025
for Holly compensation and job description software. The travel and conferences budget was also increased to support attendance at six conferences.

Q28: When are Animal Control expenses paid?
A: Animal Control expenses were paid in April last year. We have not received the invoice for FY 2024-25 yet.

Q29: Why are some Recreation accounts (Events, Programs) not consolidated? A: It makes sense to consolidate the Recreation programs given the current structure of the department. We will consider consolidating these accounts as part of next year’s budget cycle.

Q30: What’s the justification for a 51% increase in Code Enforcement budget? Is there a backlog?
A: The increase is due to the increase in hours for the contracted Code Enforcement Officer. The increase in hours would allow the Town to be more responsive to resident requests.

Q31: Why does the Building budget show a 2X revenue increase but a 29% cut in contract services? Is cost recovery realistic?
A: The increase in revenues is driven by updated fees from the new fee study and improved fee collection resulting from the addition of a Management Analyst focused on revenue analysis. The decrease in contract services reflects the conversion of a Building Technician position from contract to full-time. The cost recovery target remains at 90%, consistent with the previous fee study.

Personnel
Q32: What does the salary study show for executive positions when larger or less comparable cities are excluded?
A: The attached salary study presents data for all positions using the full set of comparator agencies and includes a separate analysis of executive positions with the larger and least comparable cities—Cupertino, Los Gatos, Saratoga, and Campbell— excluded.

Q33: Should the Town prioritize paying down the CalPERS UAL or increasing contributions to the Section 115 trust?
A: The FIC recommended the Town contribute $1 million from the General Fund Pension Contribution Reserve to the Section 115 Trust, with $100,000 each month for 10 months.

Paying down the CalPERS UAL provides cost savings and reduces long-term liabilities, but the Town loses control of those funds once they are remitted to CalPERS. In contrast, contributions to the Section 115 trust offer investment flexibility and liquidity to manage future pension rate increases. A balanced approach—targeted UAL prepayments combined with ongoing trust contributions—can optimize both cost savings and financial flexibility.

Memo to City Council
FY 2025-26 Proposed Budget Informational Update
June 18, 2025
Q34: Does the Retirement City Share increase cover both UAL and Normal Cost? A: Yes
Q35: What is driving the 17% increase in total employment costs? Are health insurance and overtime growth sustainable?
A: The increase reflects additional positions, health premiums, pension rates, and overtime costs.

Q36: Do personnel allocations (e.g., to ISF, departments, and Sewer Fund) reflect actual work performed?
A: Yes, personnel allocations are updated annually by departments based on actual work performed and time spent across functions.

Q37: Are there new positions (e.g., Project Manager, Emergency Services Manager) that require justification?
A: The proposed staffing changes focus on strengthening core services and internal capacity. The Associate Engineer is proposed to be reclassified as a Project Manager, as this position will focus more on supervising and training the Assistant Engineers to build in-house knowledge.

The contract Building Technician would be converted to full-time to provide consistent permitting and customer service support. A new Management Analyst would improve oversight of planning and building fees and deposits, ensuring more accurate tracking, billing, and collection across departments, as well as assist with the budget. The vacant Assistant Director role is proposed to be replaced with two Assistant Planners to handle increased planning workloads and improve responsiveness to residents.

Lastly, a part-time Emergency Services Manager, funded at $120,000, is proposed to enhance the Town’s emergency response planning and coordination.

Q38: Why is health insurance increasing by nearly 30% (~$22K/employee)? Is this sustainable?
A: Health insurance is increasing due to the addition of three new full-time employees as well as increases in health insurance rates.

Capital Improvement Plan
Q39: Why is the Five-Year CIP effectively a one-year plan? What long-term capital planning progress has been made?
A: Staff acknowledge the need for a long-term capital plan, but this shift will take time.

The Town has historically focused on short-term needs due to limited staffing and changing priorities. As part of last year’s budget process, consultant Drew Corbett reconciled the CIP with actual expenditures and funding sources in December 2024. The CIP reflects only projects with known timelines and secured funding. Staff are working on developing a prioritized list of capital projects to serve as the foundation for a fiveyear capital improvement plan.

Memo to City Council
FY 2025-26 Proposed Budget Informational Update
June 18, 2025
Q40: El Monte Undergrounding – these are 20A funds, not Town money. Eliminate from table to avoid distorting totals. Expenses are reimbursed. Show in a separate table. How much 20A funding is left?
A: El Monte Undergrounding is funded through Rule 20A reimbursements and has its own project number for tracking. Although the Town previously purchased Rule 20A credits, the reimbursements represent a recovery of eligible costs and are appropriately shown as revenue. The related expenses flow through the Town’s budget and should remain in the table to ensure full transparency of project funding and spending. At project completion, the projected remaining Rule 20A balance is approximately $700,000. A separate summary of 20A-funded projects can be provided if helpful.

Q41: What is the justification for high-cost items like the Security Camera system, energy studies, or Magdalena Pathway costs?
A: For the Magdalena Pathway, the estimate is based on past roadside pathways at $150- $170 per linear feet of pathway. Magdalena has almost 2,000 linear feet.

Q42: Is the Town facility energy efficiency study cost-effective? A: The goal of this project is to have energy efficient facilities. Any recommendation and design from this project would have to offset current energy costs.

Q43: Is the proposed water well at Purissima viable?
A: Per the 2022 geological study, it is worth further investigation.

Q44: Why are some previously listed projects (e.g., Phase 2 Corporate Yard, HVAC electrification) missing from the current Capital Plan? A: Corp Yard Locker Room Phase 2 project will be further assessed after the completion of the Phase 1 project. Phase 2 work comes at high costs beyond the current approved CIP budget. Council Chambers HVAC electrification will be assessed as part of the Town Facilities Energy Efficiency CIP.

Q45: Are vehicle and corporate yard costs being fairly allocated? A: Yes, the costs are fairly allocated.

Q46: Why are there no Housing Element-related costs after FY’26, and do they include legal expenses?
A: The Town does not anticipate significant Housing Element-related expenses beyond FY 2025–26. If any unplanned legal costs arise, staff would return to Council to request a budget adjustment.

Cost Allocation
Q47: How does the updated NBS Cost Allocation Plan affect year-over-year comparability and allocation methodology?
A: NBS developed a new Cost Allocation Plan (CAP) model that streamlines the methodology used in the prior Matrix study. The updated model relies on standardized, objective metrics—such as budgeted expenditures and FTEs—rather than subjective estimates or equal distributions. This approach improves consistency and aligns with federal and industry standards.

Memo to City Council
FY 2025-26 Proposed Budget Informational Update
June 18, 2025
The original NBS draft reasonably used data readily available from the Town’s financial system. Since then, staff have provided manually compiled supplemental data—such as invoices, journal entries, and contracts by department— to better reflect actual service levels.

NBS will present the final CAP and fee schedule to the FIC and Council in August and September.

Q48: Are cost allocations—such as overhead—reasonable, transparent, and consistently applied across departments and funds?
A: Yes. The NBS Cost Allocation Plan (CAP) applies overhead charges using consistent, well-established methodologies grounded in federal and industry standards. The model relies on objective metrics such as full-time equivalent (FTE) counts, budgeted expenditures, and other measurable service drivers to ensure a transparent allocation structure across departments and funds.

FTE’s and Total Expenditures are the two most common industry standard practices for allocating local government overhead costs. These two methods are the most widely applied and consistently approved as reasonable allocation bases by State and Federal auditors when the purpose of the cost allocation requires compliance with Title 2 CFR Part 200 regulations. This set of federal regulations is the original guidelines for cost allocation plans that evolved into the application of current day less restrictive uses of cost allocation plans in local governments for budgeting and fee recovery purposes.

In NBS’ opinion, many of the allocation approaches and bases used in the Matrix report did not rely on actual data sets but rather estimated non-data based splits between departments. While there is a degree of estimation involved in the approach to both versions of the plans, NBS recommended that the Town simplify the cost plan’s structure and utilize available and industry standard data sets to inform these cost allocations.

Overall, as compared to the Matrix plan, we increased the frequency of use of agenda items and expenditures as allocation factors, yet we reduced the use of estimated non data-based splits and “equal” distributions of costs. We also held constant the use of committee count and transaction count as allocation factors, and we added use of salary cost distribution, and vehicle count.

The original NBS draft reasonably used data readily available from the Town’s financial system. Since then, staff have provided manually compiled supplemental data—such as invoices, journal entries, and contracts by department— to better reflect actual service levels.

While NBS typically limits review cycles during CAP engagements, the Town has worked collaboratively with their team through several iterations to ensure the final product is fair, defensible, and tailored to the Town’s operations. NBS will present the final CAP and fee schedule to the FIC and Council in August and September.

Q49: Why is the Public Safety overhead allocation $508K when there is no in-house staff?
A: The Public Safety overhead allocation reflects the internal support required to manage

Memo to City Council
FY 2025-26 Proposed Budget Informational Update
June 18, 2025
outsourced services. Although the Town contracts for law enforcement, staff still provide oversight, budgeting, and contract management. Overhead is allocated based on service usage, not just staffing, to capture the full cost of delivering public safety.

Q50: Why is there a $560K drop in allocation to Community Services? A: The drop in overhead allocation to Community Services is due to reduced staffing in that department, which lowered both its FTE count and budget. Since cost allocations are based in part on staffing levels and expenditures, the department’s share of overhead decreased accordingly.

Q51: Why is the FY’25 Estimated Actual insurance overhead $867,090? A: The FY 2024-25 estimated actual insurance overhead allocation has been updated to $105.8K.

Q52: Why are there no cost allocations to capital funds? A: While overhead costs can be charged to capital funds under specific conditions, the Town’s current Cost Allocation Plan (CAP) excludes capital funds based on accounting standards, best practices, and methodology improvements over prior studies. The prior Matrix study did allocate overhead to capital funds using methods that are no longer recommended:
• Equal share or estimated share methods were used to spread City Clerk or administrative costs evenly across departments, including Capital Funds. This method is not reasonable or industry standard, and NBS very rarely uses it. • The prior study also used budgeted expenditures as an allocation factor, which included capital outlay. This is problematic because capital budgets vary significantly year to year and are not ongoing operating expenses. Including them skews cost allocations. The current NBS study properly excludes capital and onetime expenditures per federal guidelines.

Fund Balances
Q53: Why are there missing or incorrect transfers (e.g., COPS Fund to General Fund, ARPA)?
A: The transfer from COPS to General Fund has been updated.

Q54: Are balances and revenues in the Sewer Fund up to date with the adopted roll?
A: Yes, Sewer Fund revenues were updated to match the Council-approved FY 2025-26 sewer roll.

Q55: Are beginning and ending fund balances consistent across summary pages and fund sheets?
A: Yes, staff has updated these figures to ensure consistency across the document.

Q56: Will all ARPA funds be fully expended before fiscal year-end? Why is ARPA showing $0 starting balance and no status update on fund usage?

Memo to City Council
FY 2025-26 Proposed Budget Informational Update
June 18, 2025
A: Yes, ARPA funds are expected to be fully expended before the end of FY 2024–25.

The $0 beginning balance shown for FY 2025–26 reflects this.

Q57: Why don’t FY’25 reserve figures tie to the original budget? Should interim changes be reconciled in FY’25 or FY’26?
A: FY 2024-25 reserve figures were tied to Tyler and the ACFR. Staff will reconcile interim changes in FY 2024-25 to align with the ACFR.

ATTACHMENTS:

1. FY 2025-26 Proposed Budget – June 18, 2025

2. Updated Salary Study – May 19, 2025

ITEM 7B Attachment 5a
1 TO: Los Altos Hills City Council
FROM: Brendan Hellweg & Cherie Chung, Founders, Holly
DATE: April 17, 2025, Revised May 19, 2025
SUBJECT: Los Altos Hills Salary Study and Recommendations Report Summary
Holly completed a compensation study for the Town of Los Altos Hills, benchmarking salaries for all positions against selected comparator agencies. The study identifies current market competitiveness, highlights critical gaps, and provides targeted recommendations for adjustments to ensure the Town remains an attractive employer in a highly competitive regional labor market.

Holly's compensation analysis for 38 Los Altos Hills positions against 183 benchmarks reveals the Town's salaries are approximately 6% below benchmark median townwide. Further analysis will cover upcoming salary changes among comparators and total compensation. ● While most positions remain competitive, over half (54%) fall 5% or more below market, of which eight are more than 10% below the market median and two are significantly below market (>15%). The average market gap is 6%.
● The largest gaps appear in key roles, with Maintenance Superintendent (13%), Building Official (-14%), Building Inspector (-14%), Senior Building Inspector (-11%), and Maintenance Worker I (-11%), and Finance Manager (-10%) showing double-digit disparities with the market.
● These gaps affect departments essential to core service delivery across all levels of seniority and create vulnerability to recruitment and retention challenges as neighboring jurisdictions offer more competitive compensation.

Note: At the request of the Council, we have revised this report to include an additional table for Senior Staff roles without larger jurisdiction comparators (Campbell, Cupertino, Saratoga, and Los Gatos). This request was due to the higher level of complexity (and therefore lower jurisdictional similarity scoring) of these comparators. We have also revised Exhibits 2 and 3 to reflect requests to add benchmark roles that were not included in the initial presentation.

With these revised comparators, City Clerk’s market disparity was eliminated, and several positions saw a modest reduction in the market gap. Exhibits 4 and 5 detail how Los Altos Hills compares under this reduced set of comparators.

Key Recommendations

1. Prioritized Adjustments: Implement a phased correction strategy beginning with the most below-market positions (>10% below median), followed by moderately undermarket positions, to address immediate retention risks.

2 2. Technical Position Focus: Allocate resources first to specialized roles in Building, Engineering, and Administrative leadership where skill gaps are hardest to fill and retention is most critical.

3. Structural Reform: Revise the salary structure to better align with market medians and establish biennial compensation reviews to maintain competitiveness.

Implementing these recommendations would strategically address Los Altos Hills' compensation gaps while balancing fiscal responsibility. These targeted adjustments will strengthen the Town's position in a competitive labor market, improve employee retention, and ensure continued highquality service delivery to residents.

About Holly
Holly is an AI-powered platform dedicated to modernizing government hiring and compensation practices. By leveraging data-driven analysis and technology, we support jurisdictions in achieving equitable, competitive, and efficient compensation structures. We are currently active in jurisdictions representing three million California residents.

The Town of Los Altos Hills contracted with Holly on April 1, 2025, and data was collected between April 4 through April 7, using salary data for the 2024-2025 Fiscal Year for all jurisdictions. Our compensation analysis followed a structured, transparent methodology:
● Comparator Selection: Comparator jurisdictions were selected based on geographic proximity, community demographics, organizational size, and service delivery models. ● Data Collection: Holly leveraged current-year comparator jurisdiction public disclosures to gather and process position descriptions and salary data. ● Benchmarking Analysis: Holly utilized AI-powered analytics to perform precise, dutiesbased comparisons, ensuring robust alignment of roles across jurisdictions. ● Human Confirmation: Holly team conducted independent review of position matches to ensure effective benchmarking against roles and weigh in on ambiguous cases. ● Market Positioning: Each Town position was evaluated against the midpoint salaries of equivalent roles in comparator agencies, highlighting competitive alignment and gaps. ● Recommendations: Adjustments were recommended based on identified market gaps, recruitment priorities, and retention risks.

1. Comparator Selection
Comparator jurisdictions were selected based on:
● Geographic proximity and relevance to Los Altos Hills. ● Similar population sizes, community profiles, and staffing structures. ● Comparable labor markets and organizational service delivery models.

Comparator Agencies Assessed:

Entity Type Population Operating Budget Similarity Mean Diff Los Altos Hills Town 8,189 $19M 100% 0%

3 Portola Valley Town 4,329 $10M 95% 1%
Woodside Town 5,037 $12M 92% 8%
Los Altos City 29,990 $55M 91% -7%
Atherton Town 6,823 $22M 87% -5%
Hillsborough Town 10,883 $33M 84% -2%
Saratoga City 29,607 $31M 82% -11%
Los Gatos Town 32,216 $53M 81% -5%
Cupertino City 57,285 $90M 78% -7%
Campbell City 41,700 $56M 76% -12%
These agencies reflect competitive labor pools that align closely with Los Altos Hills' organizational profile and employment market. Factors considered include size, operating budget, economic & labor market status, density, and agency service coverage (Police, utilities, etc.). Notably, the highest similarity score jurisdictions have smaller Mean Differences (calculated as the averages of all midpoint-to-midpoint median benchmarks for that jurisdiction against Los Altos Hills positions).

2. Data Collection, Benchmarking, & Validation
Holly assessed similarity for all Los Altos Hills against the most similar jobs within each comparator jurisdiction. We used a minimum similarity of 70% for inclusion based on the core duties, working structure, and position in the organizational structure of the roles.

1. Collection: Holly utilized scraping, optical character recognition, and manual confirmation to collect current-year salary information from each jurisdiction as well as class specifications or job descriptions to assist in position matching.

2. Position Tagging: The analysis uses five broad categories of matching criteria: Job Function Alignment (20%), Work Characteristics (45%), Environmental Factors (15%), Role Alignment (15%), and Semantic Similarity (5%). Within each category, the system evaluates 15-20 criteria, prioritizing job function match.

3. Position Matches: Our matches had a mean similarity of 84%, a high of 100% (for functionally identical roles such as Town Manager to Town Manager), and a low of 72%.

4. Match Validation: Following programmatic matching, we assessed each position to ensure accurate comparisons.

3. Competitive Positioning and Recommendations
Holly then processed the competitive relationships between Los Altos Hills and position benchmarks.

A detailed table, attached separately, outlines each Town position's current compensation relative to market median rates from selected comparator jurisdictions. Among these jurisdictions, Los Altos Hills seeks to track the market median, which we assess at the midpoint or middle grade for each position (and the single salary for roles without grades). For the purpose of this analysis, we solely consider salary and do not include other forms of compensation, which will be the subject of subsequent reports.

4 Positions are categorized as:
● At Market (within 5% of comparator median)
● Below Market (5%-15% below comparator median)
● Significantly Below Market (>15% below comparator median) Recommendations:

1. Prioritized Adjustment Approach
Implement a phased strategy addressing critical gaps first:
● Phase 1 (Immediate): Address positions >15% below market ● Phase 2 (Within 6 months): Adjust positions 10-15% below market ● Phase 3 (Within 12 months): Address positions 5-10% below market

2. Further Analysis
Assess additional factors in recruitment and retention:
● Compensation: Review total compensation factors as well as upcoming changes to competitors to remain competitive in the market.
● Job Design: Assess position features such as requirements, duties, and career pathways to make the Town a more appealing employer. Assessments of skills-based hiring and barriers to employment can widen the set of potential candidates. ● Satisfaction: As it becomes relevant, survey staff on the nature of their duties and satisfaction with roles.

3. Structural Adjustments
● Salary Structure Revision: Align salary structures with median market rates, particularly for technical positions.
● Advancement Pathways: Create clearer progression for entry-level positions to improve retention.

Analysis of Each Position Against Benchmarks
For each role, Holly conducted a thorough market comparison based on:
● Role responsibilities, qualifications, and experience requirements. ● Direct salary comparisons with equivalent positions in comparator jurisdictions. ● Evaluation of unique factors influencing recruitment and retention challenges.

5 Key findings for critical positions are highlighted, outlining specific gaps and suggested adjustments to ensure ongoing competitiveness and effective staff retention. Exhibit 1 details the current salary schedule for the Town, while Exhibit 2 provides an aggregated summary of salary competitiveness. Exhibit 3 provides a detailed table of competitiveness and is available in Excel form alongside this report.

We appreciate the opportunity to support Los Altos Hills in ensuring fair, competitive, and strategically-aligned compensation practices. The Holly team is available for any and all questions as the City Council digests these assessments.

Respectfully submitted,
Brendan Hellweg
Co-founder, Holly
[email protected]
(413) 552-9365

6 EXHIBIT 1: TOWN OF LOS ALTOS HILLS SUMMARY TABLE
Position Annual Low Annual High Midpoint
City Manager $24,833 $24,833 $24,833
Deputy City Manager $12,953 $17,486 $15,219
Assistant to the City Manager $11,159 $15,064 $13,112
Management Analyst II $9,388 $12,673 $11,030
Management Analyst $8,095 $10,928 $9,511
Senior City Clerk $12,017 $16,223 $14,120
City Clerk $10,362 $13,989 $12,176
Admin Clerk/Technician $6,482 $8,750 $7,616
Administrative Services Director $15,767 $21,286 $18,527 Finance Director $14,964 $20,221 $17,593
Finance Manager $11,916 $16,087 $14,002
Senior Accountant $10,362 $13,989 $12,176
Accountant $8,505 $11,481 $9,993
Accounting Technician $7,705 $10,402 $9,053
Accounting Office Assistant $6,644 $8,969 $7,807
Community Development Director $15,767 $21,286 $18,527
Assistant Community Development Director/Building $12,953 $17,486 $15,219 Principal Planner $11,438 $15,441 $13,439
Senior Planner $9,863 $13,315 $11,589
Associate Planner $8,505 $11,481 $9,993
Assistant Planner $7,334 $9,900 $8,617
Building Official $10,362 $13,989 $12,176
Deputy Building Official/Plan Examiner $9,844 $13,289 $11,566 Senior Building Inspector $8,505 $11,481 $9,993
Building Inspector $7,334 $9,900 $8,617
Building Technician $6,810 $9,193 $8,002
Public Works Director & City Engineer $15,767 $21,286 $18,527 Utility Engineering Manager $12,017 $16,223 $14,120
Senior Civil Engineer $10,887 $14,697 $12,792
Associate Engineer $9,388 $12,673 $11,030
Assistant Engineer $8,095 $10,928 $9,511
Senior Maintenance Superintendent $11,438 $15,441 $13,439 Maintenance Superintendent $9,863 $13,315 $11,589
Maintenance Worker III $6,644 $8,969 $7,807
Maintenance Worker II $5,729 $7,734 $6,732
Maintenance Worker I $4,940 $6,669 $5,805
Community Services Manager $9,714 $13,113 $11,414
Community Services Supervisor $8,095 $10,928 $9,511
Recreation Specialist $5,190 $7,007 $6,098

7 Senior Public Works Inspector $9,770 $13,190 $11,480
Public Works Inspector $7,919 $10,691 $9,305

8 EXHIBIT 2: COMPARATIVE ANALYSIS WITH BENCHMARK PEERS
Note: this list continues to show the full set of comparators for senior roles. To see the adjusted values for the reduced list of comparators for senior roles, please go to Exhibits 4 and 5.

Row Labels
LAH
Midpoint
Roles
Included Benchmark Median Diff
Accountant $9,993 6 $10,167 -2%
Accounting Office Assistant $7,807 2 $8,146 -4%
Accounting Technician $9,053 5 $8,515 6%
Administrative Clerk / Technician $7,616 6 $7,711 -1%
Administrative Services Director $18,527 4 $19,771 -6%
Assistant Community Development
Director / Building Official $15,219 7 $16,337 -7%
Assistant Engineer $9,511 6 $10,385 -8%
Assistant Planner $8,617 6 $9,184 -6%
Assistant to the City Manager $13,112 5 $13,709 -4%
Associate Engineer $11,030 6 $11,557 -5%
Associate Planner $9,993 9 $10,862 -8%
Building Inspector $8,617 6 $10,068 -14%
Building Official $12,176 8 $14,480 -16%
Building Technician $8,002 3 $8,090 -1%
City Clerk $12,176 9 $14,391 -15%
Community Development Director $18,527 9 $19,429 -5%
Community Services Manager $11,414 4 $12,250 -7%
Community Services Supervisor $9,511 4 $10,102 -6%
Deputy Building Official / Plan Examiner $11,566 4 $11,761 -2% Deputy City Manager $14,761 4 $16,424 -10%
Finance Director $17,593 6 $18,896 -7%
Finance Manager $14,002 7 $15,617 -10%
Maintenance Superintendent $11,589 4 $13,275 -13%
Maintenance Worker I $5,805 7 $6,489 -11%
Maintenance Worker II $6,732 7 $7,246 -7%
Maintenance Worker III $7,807 5 $8,193 -5%
Management Analyst $9,511 6 $10,029 -5%
Management Analyst II $11,030 6 $10,943 1%
Principal Planner $13,439 4 $13,935 -4%
Public Works Director $18,527 8 $19,645 -6%
Public Works Inspector $9,305 8 $9,290 0%

9 Recreation Specialist $6,098 3 $6,357 -4%
Senior Accountant $12,176 5 $11,318 8%
Senior Building Inspector $9,993 7 $11,252 -11%
Senior Civil Engineer $12,792 6 $13,586 -6%
Senior Planner $11,589 9 $12,503 -7%
Senior Public Works Inspector $11,480 4 $10,852 6%
Utility Engineering Manager $14,120 6 $13,928 1%
Grand Total $11,553 221 $12,313 -6%

10 EXHIBIT 3: DETAILED COMPARATOR TABLE BY POSITION
Note: this list continues to show the full set of comparators for senior roles. To see the adjusted values for the reduced list of comparators for senior roles, please go to Exhibits 4 and 5.

Comparator
Agency Benchmark Title Similarity Low Midpoint High Difference Median Median
Diff
Los Altos Hills Accountant 100% $8,505 $9,993 $11,481 0% $10,167 -2% Atherton Accountant 90% $9,462 $10,208 $10,953 -2% $10,167 -2% Campbell Accountant 90% $9,268 $10,264 $11,260 -3% $10,167 -2% Hillsborough Accountant 90% $9,142 $10,127 $11,112 -1% $10,167 -2% Los Altos Accountant 90% $9,267 $10,266 $11,264 -3% $10,167 -2% Cupertino Accountant I 76% $8,077 $8,948 $9,819 12% $10,167 -2% Los Altos Hills
Accounting Office
Assistant 100% $6,644 $7,807 $8,969 0% $8,146 -4%
Campbell Accounting Clerk II 83% $7,667 $8,485 $9,303 -8% $8,146 -4% Los Altos Hills
Accounting
Technician 100% $7,705 $9,054 $10,402 0% $8,515 6%
Cupertino
Accounting
Technician 90% $8,011 $8,875 $9,738 2% $8,515 6%
Hillsborough
Accounting
Technician 84% $7,232 $8,011 $8,790 13% $8,515 6%
Saratoga
Accounting
Technician 84% $7,277 $8,515 $9,753 6% $8,515 6%
Los Altos
Accounting
Technician II 83% $7,365 $8,159 $8,952 11% $8,515 6%
Los Altos Hills
Administrative
Clerk / Technician 100% $6,482 $7,616 $8,750 0% $7,711 -1% Saratoga
Administrative
Assistant 84% $6,937 $8,115 $9,294 -6% $7,711 -1%
Cupertino
Administrative
Assistant 83% $7,046 $7,805 $8,564 -2% $7,711 -1%
Hillsborough
Administrative
Assistant 81% $6,455 $7,151 $7,846 7% $7,711 -1%
Woodside
Administrative
Assistant 81% $4,722 $7,083 $9,444 8% $7,711 -1%
Saratoga
Administrative
Technician 77% $7,277 $8,283 $9,289 -8% $7,711 -1%
Los Altos Hills
Administrative
Services Director 100% $15,767 $18,527 $21,286 0% $19,771 -6% Saratoga
Administrative
Services Director 88% $17,961 $21,015 $24,069 -12% $19,771 -6%

11 Woodside
Administrative
Services Director 88% $11,830 $17,745 $23,660 4% $19,771 -6% Cupertino
Director of
Administrative
Services 72% $19,430 $21,524 $23,618 -14% $19,771 -6%
Los Altos Hills
Assistant
Community
Development
Director / Building
Official 100% $12,953 $15,220 $17,486 0% $16,337 -7%
Campbell Building Official 94% $13,924 $15,426 $16,928 -1% $16,337 -7% Hillsborough Building Official 94% $12,498 $13,845 $15,192 10% $16,337 -7% Cupertino Building Official 91% $14,792 $16,386 $17,979 -7% $16,337 -7% Saratoga Building Official 84% $14,014 $16,398 $18,781 -7% $16,337 -7% Cupertino
Assistant Director
of Community
Development 76% $15,738 $17,435 $19,131 -13% $16,337 -7% Hillsborough
Assistant Director
of Building &
Planning 72% $14,747 $16,337 $17,926 -7% $16,337 -7%
Los Altos Hills Assistant Engineer 100% $8,095 $9,512 $10,928 0% $10,385 -8% Hillsborough Assistant Engineer I 89% $8,384 $9,286 $10,189 2% $10,385 -8% Saratoga Assistant Engineer 88% $9,663 $11,306 $12,948 -16% $10,385 -8% Hillsborough
Assistant Engineer
II 87% $9,243 $10,239 $11,234 -7% $10,385 -8%
Campbell Assistant Engineer 84% $10,599 $11,745 $12,891 -19% $10,385 -8% Los Gatos Assistant Engineer 84% $9,209 $10,531 $11,853 -10% $10,385 -8% Los Altos Hills Assistant Planner 100% $7,334 $8,617 $9,900 0% $9,184 -6% Woodside Assistant Planner 88% $5,922 $8,883 $11,844 -3% $9,184 -6% Campbell Assistant Planner 87% $9,294 $10,294 $11,294 -16% $9,184 -6% Cupertino Assistant Planner 84% $8,817 $9,954 $11,092 -13% $9,184 -6% Los Gatos Assistant Planner 84% $8,163 $9,341 $10,519 -8% $9,184 -6% Portola Valley
Assistant/Associate
Planner 78% $7,684 $9,028 $10,371 -5% $9,184 -6%
Los Altos Hills
Assistant to the
City Manager 100% $11,159 $13,112 $15,064 0% $13,709 -4% Cupertino
Assistant to the
City Manager 92% $12,944 $14,339 $15,734 -9% $13,709 -4%

12 Los Altos
Assistant to the
City Manager 92% $12,375 $13,709 $15,042 -4% $13,709 -4% Campbell
Assistant To City
Manager 90% $12,405 $13,743 $15,080 -5% $13,709 -4%
Woodside
Assistant to the
Town Manager 79% $7,335 $11,002 $14,669 19% $13,709 -4% Los Altos Hills Associate Engineer 100% $9,388 $11,031 $12,673 0% $11,557 -5% Los Gatos
Associate Civil
Engineer 94% $10,478 $11,975 $13,473 -8% $11,557 -5%
Cupertino
Associate Civil
Engineer 93% $10,552 $11,913 $13,274 -7% $11,557 -5%
Woodside Associate Engineer 88% $6,387 $9,581 $12,774 15% $11,557 -5% Atherton
Associate Civil
Engineer 84% $10,383 $11,202 $12,020 -2% $11,557 -5%
Campbell
Associate Civil
Engineer 80% $11,962 $13,253 $14,544 -17% $11,557 -5%
Los Altos Hills Associate Planner 100% $8,505 $9,993 $11,481 0% $10,862 -8% Hillsborough Associate Planner 97% $9,884 $10,950 $12,016 -9% $10,862 -8% Saratoga Associate Planner 88% $10,001 $11,703 $13,404 -15% $10,862 -8% Woodside Associate Planner 88% $6,387 $9,581 $12,774 4% $10,862 -8% Cupertino Associate Planner 87% $9,502 $10,728 $11,953 -7% $10,862 -8% Portola Valley
Assistant/Associate
Planner 84% $7,684 $9,028 $10,371 11% $10,862 -8%
Campbell Associate Planner 84% $10,863 $12,031 $13,199 -17% $10,862 -8% Los Altos Associate Planner 84% $9,998 $11,076 $12,153 -10% $10,862 -8% Los Gatos Associate Planner 84% $9,499 $10,862 $12,224 -8% $10,862 -8% Los Altos Hills Building Inspector 100% $7,334 $8,617 $9,900 0% $10,068 -14% Campbell Building Inspector 94% $10,275 $11,385 $12,494 -24% $10,068 -14% Cupertino Building Inspector 94% $9,327 $10,531 $11,735 -18% $10,068 -14% Los Altos Building Inspector 94% $8,922 $9,884 $10,845 -13% $10,068 -14% Los Gatos Building Inspector 94% $8,963 $10,252 $11,540 -16% $10,068 -14% Hillsborough Building Inspector I 94% $8,232 $9,108 $9,985 -5% $10,068 -14% Los Altos Hills Building Official 100% $10,362 $12,176 $13,989 0% $14,528 -16% Campbell Building Official 94% $13,924 $15,426 $16,928 -21% $14,528 -16% Cupertino Building Official 94% $14,792 $16,386 $17,979 -26% $14,528 -16% Hillsborough Building Official 94% $12,498 $13,845 $15,192 -12% $14,528 -16%

13 Los Gatos
Chief Building
Official 94% $12,282 $14,431 $16,581 -16% $14,528 -16%
Los Altos Building Official 90% $13,115 $14,528 $15,941 -16% $14,528 -16% Saratoga Building Official 84% $14,014 $16,398 $18,781 -26% $14,528 -16% Los Altos Hills
Building
Technician 100% $6,810 $8,002 $9,193 0% $8,090 -1%
Campbell Permit Technician 73% $7,439 $8,241 $9,043 -3% $8,090 -1% Cupertino Permit Technician 73% $7,165 $8,090 $9,015 -1% $8,090 -1% Los Altos Hills City Clerk 100% $10,362 $12,176 $13,989 0% $14,391 -15% Los Altos City Clerk 92% $12,991 $14,391 $15,791 -15% $14,391 -15% Cupertino City Clerk 90% $13,126 $14,540 $15,955 -16% $14,391 -15% Saratoga City Clerk 88% $12,561 $14,696 $16,831 -17% $14,391 -15% Campbell City Clerk 84% $13,078 $14,486 $15,893 -16% $14,391 -15% Hillsborough City Clerk 81% $11,307 $12,524 $13,740 -3% $14,391 -15% Portola Valley Town Clerk 77% $9,718 $11,213 $12,707 9% $14,391 -15% Woodside Town Clerk 76% $7,335 $11,002 $14,669 11% $14,391 -15% Los Gatos Town Clerk 74% $12,282 $14,431 $16,581 -16% $14,391 -15% Los Altos Hills
Community
Development
Director 100% $15,767 $18,527 $21,286 0% $19,429 -5%
Portola Valley
Planning &
Building Director 94% $14,592 $16,824 $19,055 10% $19,429 -5% Hillsborough
Director of
Building and
Planning 91% $17,539 $19,429 $21,318 -5% $19,429 -5%
Campbell
Community
Development
Director 90% $18,521 $21,372 $24,223 -13% $19,429 -5%
Los Altos
Development
Services Director 86% $17,610 $19,507 $21,405 -5% $19,429 -5% Los Gatos
Community
Development
Director 84% $15,721 $18,473 $21,224 0% $19,429 -5%
Woodside Planning Director 84% $11,830 $17,745 $23,660 4% $19,429 -5% Cupertino
Director of
Community
Development 78% $19,430 $21,524 $23,618 -14% $19,429 -5% Saratoga
Community
Development
Director 75% $17,784 $20,807 $23,830 -11% $19,429 -5%

14 Los Altos Hills
Community
Services Manager 100% $9,714 $11,414 $13,113 0% $12,250 -7% Cupertino
Recreation
Manager 81% $10,402 $11,522 $12,643 -1% $12,250 -7%
Los Altos
Recreation
Manager 81% $11,716 $12,979 $14,241 -12% $12,250 -7%
Campbell
Recreation Services
Manager 81% $13,260 $14,692 $16,123 -22% $12,250 -7%
Los Altos Hills
Community
Services Supervisor 100% $8,095 $9,512 $10,928 0% $10,102 -6% Cupertino
Recreation
Supervisor 92% $9,434 $10,451 $11,468 -9% $10,102 -6%
Los Altos
Recreation
Supervisor 92% $8,805 $9,753 $10,702 -2% $10,102 -6%
Campbell
Recreation
Supervisor 87% $9,923 $10,996 $12,069 -14% $10,102 -6%
Los Altos Hills
Deputy Building
Official / Plan
Examiner** 100% $9,844 $11,566 $13,289 0% $11,761 -2%
Cupertino
Deputy Building
Official 90% $12,795 $14,174 $15,553 23% $11,761 -2%
Campbell
Plan Check
Examiner 75% $10,020 $11,163 $12,305 -4% $11,761 -2%
Cupertino
Plan Check
Engineer 70% $10,793 $11,955 $13,118 3% $11,761 -2%
Los Altos Hills
Deputy City
Manager 100% $12,036 $14,761 $17,486 0% $16,424 -10%
Campbell
Deputy City
Manager 95% $13,913 $15,413 $16,912 -4% $16,424 -10%
Cupertino
Deputy City
Manager 92% $15,738 $17,435 $19,131 -15% $16,424 -10%
Los Altos
Deputy City
Manager 91% $15,942 $17,660 $19,378 -16% $16,424 -10%
Los Altos Hills Finance Director 100% $14,964 $17,593 $20,221 0% $18,896 -7% Hillsborough Director of Finance 97% $17,539 $19,429 $21,318 -9% $18,896 -7% Atherton Finance Director 94% $17,022 $18,363 $19,704 -4% $18,896 -7% Campbell Finance Director 94% $18,424 $21,259 $24,093 -17% $18,896 -7% Los Gatos Finance Director 94% $15,338 $18,022 $20,707 -2% $18,896 -7% Los Altos Finance Director 82% $17,604 $19,501 $21,398 -10% $18,896 -7% Los Altos Hills Finance Manager 100% $11,916 $14,002 $16,087 0% $15,617 -10% Cupertino Finance Manager 91% $14,717 $16,303 $17,889 -14% $15,617 -10% Saratoga Finance Manager 88% $13,582 $15,890 $18,198 -12% $15,617 -10%

15 Campbell Finance Manager 84% $14,097 $15,617 $17,137 -10% $15,617 -10% Los Altos
Financial Services
Manager 84% $14,123 $15,645 $17,167 -11% $15,617 -10%
Los Gatos
Finance and Budget
Manager 79% $12,282 $14,431 $16,581 -3% $15,617 -10%
Los Gatos
Finance and
Accounting
Manager 78% $12,282 $14,431 $16,581 -3% $15,617 -10%
Los Altos Hills
Maintenance
Superintendent 100% $9,863 $11,589 $13,315 0% $13,275 -13% Los Altos
Maintenance
Superintendent 88% $12,991 $14,391 $15,791 -19% $13,275 -13% Atherton
Public Works
Maintenance
Manager 82% $11,271 $12,160 $13,048 -5% $13,275 -13%
Cupertino
Service Center
Superintendent 76% $13,026 $14,430 $15,834 -20% $13,275 -13% Los Altos Hills
Maintenance
Worker I 100% $4,940 $5,805 $6,669 0% $6,489 -11%
Campbell
Maintenance
Worker I 97% $5,973 $6,617 $7,261 -12% $6,489 -11%
Cupertino
Maintenance
Worker I 97% $5,398 $6,095 $6,791 -5% $6,489 -11%
Hillsborough
Maintenance
Worker I 94% $5,865 $6,489 $7,113 -11% $6,489 -11%
Saratoga
Maintenance
Worker I 93% $5,801 $6,787 $7,772 -14% $6,489 -11%
Portola Valley
Maintenance
Worker I* 92% $5,675 $6,271 $6,866 -7% $6,489 -11%
Los Altos
Maintenance
Worker I 84% $5,932 $6,572 $7,211 -12% $6,489 -11%
Los Altos Hills
Maintenance
Worker II 100% $5,729 $6,732 $7,734 0% $7,246 -7%
Campbell
Maintenance
Worker II 94% $6,602 $7,314 $8,025 -8% $7,246 -7%
Portola Valley
Maintenance
Worker II* 92% $6,866 $7,461 $8,056 -10% $7,246 -7%
Saratoga
Maintenance
Worker II 85% $6,408 $7,497 $8,585 -10% $7,246 -7%
Cupertino
Maintenance
Worker II 82% $6,250 $7,059 $7,867 -5% $7,246 -7%
Los Altos
Maintenance
Worker II 81% $6,541 $7,246 $7,950 -7% $7,246 -7%

16 Hillsborough
Maintenance
Worker II 80% $6,453 $7,147 $7,841 -6% $7,246 -7%
Los Altos Hills
Maintenance
Worker III 100% $6,644 $7,807 $8,969 0% $8,193 -5%
Los Gatos
Senior Parks &
Maintenance
Worker 91% $6,625 $7,540 $8,455 4% $8,193 -5%
Los Altos
Maintenance Lead
Worker 81% $7,396 $8,193 $8,990 -5% $8,193 -5%
Saratoga
Maintenance
Worker III 81% $7,047 $8,247 $9,447 -5% $8,193 -5%
Hillsborough
Lead Maintenance
Worker 79% $7,612 $8,432 $9,252 -7% $8,193 -5%
Los Altos Hills
Management
Analyst 100% $8,095 $9,512 $10,928 0% $10,029 -5%
Atherton
Management
Analyst 91% $10,158 $11,003 $11,848 -14% $10,029 -5%
Woodside
Management
Analyst 88% $5,500 $8,250 $11,000 15% $10,029 -5%
Los Altos
Management
Analyst I 85% $9,290 $10,291 $11,292 -8% $10,029 -5%
Hillsborough
Management
Analyst I 80% $8,816 $9,767 $10,718 -3% $10,029 -5%
Los Gatos
Administrative
Analyst 74% $9,004 $10,298 $11,592 -8% $10,029 -5%
Los Altos Hills
Management
Analyst II 100% $9,388 $11,031 $12,673 0% $10,943 1%
Los Altos
Management
Analyst II 92% $9,790 $10,845 $11,900 2% $10,943 1%
Atherton
Management
Analyst II 91% $11,173 $12,102 $13,032 -9% $10,943 1%
Hillsborough
Management
Analyst II 86% $9,700 $10,744 $11,789 3% $10,943 1%
Cupertino
Management
Analyst 82% $9,800 $10,856 $11,912 2% $10,943 1%
Campbell
Administrative
Analyst II 72% $10,157 $11,254 $12,350 -2% $10,943 1%
Los Altos Hills Principal Planner 100% $11,438 $13,440 $15,441 0% $13,935 -4% Woodside Principal Planner 88% $8,746 $13,119 $17,492 2% $13,935 -4% Los Altos
Planning Services
Manager 86% $13,115 $14,528 $15,941 -7% $13,935 -4%
Los Gatos Planning Manager 84% $12,282 $14,431 $16,581 -7% $13,935 -4%

17 Los Altos Hills
Public Works
Director 100% $15,767 $18,527 $21,286 0% $19,645 -6%
Hillsborough
Director of Public
Works - City
Engineer 94% $18,744 $20,763 $22,781 -11% $19,645 -6%
Cupertino
Director of Public
Works 93% $19,999 $22,154 $24,310 -16% $19,645 -6%
Campbell
Public Works
Director 93% $18,963 $21,937 $24,911 -16% $19,645 -6%
Atherton
Public Works
Director/City
Engineer 92% $16,962 $18,299 $19,635 1% $19,645 -6%
Saratoga
Public Works
Director 91% $18,406 $21,538 $24,669 -14% $19,645 -6%
Woodside
Town
Engineer/Director
of Public Works 84% $11,830 $17,745 $23,660 4% $19,645 -6% Los Gatos
Parks & Public
Works Director 74% $15,721 $18,473 $21,224 0% $19,645 -6% Los Altos Hills
Public Works
Inspector 100% $7,919 $9,305 $10,691 0% $9,290 0%
Los Gatos
Public Works
Inspector 95% $7,787 $8,863 $9,939 5% $9,290 0%
Cupertino
Public Works
Inspector 94% $9,327 $10,332 $11,338 -10% $9,290 0%
Campbell
Public Works
Inspector 93% $10,275 $11,385 $12,494 -18% $9,290 0%
Saratoga
Public Works
Inspector 93% $9,086 $10,630 $12,173 -12% $9,290 0%
Hillsborough
Public Works
Inspector I 92% $7,612 $8,432 $9,252 10% $9,290 0%
Hillsborough
Public Works
Inspector II 90% $8,372 $9,275 $10,177 0% $9,290 0%
Los Altos
Construction
Inspector 79% $8,100 $8,972 $9,845 4% $9,290 0%
Los Altos Hills
Recreation
Specialist 100% $5,190 $6,099 $7,007 0% $6,357 -4%
Campbell
Recreation
Specialist 84% $5,526 $6,357 $7,188 -4% $6,357 -4%
Campbell
Recreation
Specialist Facilities 81% $5,526 $6,357 $7,188 -4% $6,357 -4% Los Altos Hills
Senior Accountant /
Finance Manager 100% $10,362 $12,176 $13,989 0% $11,318 8% Hillsborough Senior Accountant 96% $10,056 $11,139 $12,223 9% $11,318 8%

18 Campbell Senior Accountant 94% $10,215 $11,318 $12,421 8% $11,318 8% Cupertino Senior Accountant 94% $10,310 $11,421 $12,531 7% $11,318 8% Los Altos Senior Accountant 84% $10,035 $11,116 $12,197 10% $11,318 8% Los Altos Hills
Senior Building
Inspector 100% $8,505 $9,993 $11,481 0% $11,252 -11%
Hillsborough
Building Inspector
II 94% $9,056 $10,032 $11,008 0% $11,252 -11%
Campbell
Senior Building
Inspector 94% $11,161 $12,371 $13,581 -19% $11,252 -11% Cupertino
Senior Building
Inspector 94% $9,966 $11,252 $12,539 -11% $11,252 -11%
Los Altos
Senior Building
Inspector 90% $9,862 $10,925 $11,987 -9% $11,252 -11%
Los Gatos
Senior Building
Inspector 90% $10,476 $11,973 $13,470 -17% $11,252 -11% Hillsborough
Senior Building
Inspector/Plan
Checker 86% $10,215 $11,315 $12,414 -12% $11,252 -11%
Los Altos Hills
Senior Civil
Engineer 100% $10,887 $12,792 $14,697 0% $13,586 -6%
Cupertino
Senior Civil
Engineer 97% $13,807 $15,295 $16,783 -16% $13,586 -6%
Los Gatos
Senior Civil
Engineer 88% $11,690 $13,736 $15,781 -7% $13,586 -6%
Woodside Senior Engineer 88% $7,811 $11,717 $15,622 9% $13,586 -6% Los Altos Senior Engineer 87% $12,129 $13,436 $14,743 -5% $13,586 -6% Campbell
Senior Civil
Engineer 84% $13,652 $15,125 $16,597 -15% $13,586 -6%
Los Altos Hills Senior Planner 100% $9,863 $11,589 $13,315 0% $12,503 -7% Saratoga Senior Planner 94% $11,152 $13,048 $14,943 -11% $12,503 -7% Los Altos Senior Planner 92% $11,849 $13,126 $14,402 -12% $12,503 -7% Hillsborough Senior Planner 91% $11,368 $12,593 $13,818 -8% $12,503 -7% Los Gatos Senior Planner 90% $10,941 $12,503 $14,064 -7% $12,503 -7% Woodside Senior Planner 88% $7,811 $11,717 $15,622 -1% $12,503 -7% Portola Valley Senior Planner 87% $9,926 $11,956 $13,986 -3% $12,503 -7% Campbell Senior Planner 84% $12,314 $13,646 $14,978 -15% $12,503 -7% Cupertino Senior Planner 84% $10,188 $11,503 $12,818 1% $12,503 -7% Los Altos Hills
Senior Public
Works Inspector 100% $9,770 $11,480 $13,190 0% $10,852 6%

19 Los Gatos
Senior Public
Works Inspector 93% $7,787 $8,863 $9,939 30% $10,852 6% Campbell
Senior Public
Works Inspector 89% $10,974 $12,160 $13,347 -6% $10,852 6% Hillsborough
Public Works
Inspector III 87% $9,230 $10,224 $11,218 12% $10,852 6% Los Altos Hills
Utility Engineering
Manager 100% $12,017 $14,120 $16,223 0% $13,928 1%
Cupertino
Senior Civil
Engineer 97% $13,807 $15,295 $16,783 -8% $13,928 1%
Los Gatos
Senior Civil
Engineer 88% $11,690 $13,736 $15,781 3% $13,928 1%
Woodside Senior Engineer 88% $7,811 $11,717 $15,622 21% $13,928 1% Los Altos Senior Engineer 87% $12,129 $13,436 $14,743 5% $13,928 1% Campbell
Senior Civil
Engineer 84% $13,652 $15,125 $16,597 -7% $13,928 1%
*Portola Valley Maintenance Worker split between I and II at midpoint **New addition added on 5.13.25

20 EXHIBIT 4: SUMMARY COMPARATOR TABLE FOR SENIOR ROLES Modified to remove the largest jurisdictions (Cupertino, Campbell, Los Gatos, and Saratoga) Roles
LAH
Midpoint
Roles
Included
Benchmark
Median Diff
Administrative Services Director $18,527 2 $18,136 2%
Assistant Community Development Director / Building
Official $15,219 3 $15,220 0%
Assistant to the City Manager $13,112 3 $13,112 0%
Building Official $12,176 4 $14,138 -14%
City Clerk $12,176 5 $12,176 0%
Community Development Director $18,527 5 $18,527 0%
Deputy Building Official / Plan Examiner $11,566 2 $12,463 -7% Deputy City Manager $14,761 2 $16,210 -9%
Finance Director $17,593 4 $18,896 -7%
Public Works Director $18,527 4 $18,413 1%
Grand Total $15,335 34 $15,821 -3%

21 EXHIBIT 5: DETAILED COMPARATOR TABLE FOR SENIOR ROLES Modified to remove the largest jurisdictions (Cupertino, Campbell, Los Gatos, and Saratoga) Comparator
Agency Benchmark Title Similarity Low Midpoint High
Differenc
e Median
Median_
Diff
Los Altos
Hills
Administrative
Services Director 100% $15,767 $18,527 $21,286 0% $18,136 2% Woodside
Administrative
Services Director 88% $11,830 $17,745 $23,660 4% $18,136 2% Los Altos
Hills
Assistant
Community
Development
Director / Building
Official 100% $12,953 $15,220 $17,486 0% $15,220 0%
Hillsborough Building Official 94% $12,498 $13,845 $15,192 10% $15,220 0% Hillsborough
Assistant Director
of Building &
Planning 72% $14,747 $16,337 $17,926 -7% $15,220 0%
Los Altos
Hills
Assistant to the
City Manager 100% $11,159 $13,112 $15,064 0% $13,112 0% Los Altos
Assistant to the
City Manager 92% $12,375 $13,709 $15,042 -4% $13,112 0% Woodside
Assistant to the
Town Manager 79% $7,335 $11,002 $14,669 19% $13,112 0%
Los Altos
Hills Building Official 100% $10,362 $12,176 $13,989 0% $13,845 -12% Hillsborough Building Official 94% $12,498 $13,845 $15,192 -12% $13,845 -12% Los Altos Building Official 90% $13,115 $14,528 $15,941 -16% $13,845 -12% Los Altos
Hills City Clerk 100% $10,362 $12,176 $13,989 0% $12,176 0% Los Altos City Clerk 92% $12,991 $14,391 $15,791 -15% $12,176 0% Hillsborough City Clerk 81% $11,307 $12,524 $13,740 -3% $12,176 0% Portola
Valley Town Clerk 77% $9,718 $11,213 $12,707 9% $12,176 0% Woodside Town Clerk 76% $7,335 $11,002 $14,669 11% $12,176 0% Los Altos
Hills
Community
Development
Director 100% $15,767 $18,527 $21,286 0% $18,527 0%
Portola
Valley
Planning &
Building Director 94% $14,592 $16,824 $19,055 10% $18,527 0% Hillsborough
Director of
Building and
Planning 91% $17,539 $19,429 $21,318 -5% $18,527 0%

22 Los Altos
Development
Services Director 86% $17,610 $19,507 $21,405 -5% $18,527 0% Woodside Planning Director 84% $11,830 $17,745 $23,660 4% $18,527 0% Los Altos
Hills
Deputy Building
Official / Plan
Examiner 100% $9,844 $11,566 $13,289 0% $12,463 -7%
San Carlos
Assistant Building
Official 85% $12,060 $13,360 $14,659 16% $12,463 -7%
Los Altos
Hills
Deputy City
Manager 100% $12,036 $14,761 $17,486 0% $16,210 -9%
Los Altos
Deputy City
Manager 91% $15,942 $17,660 $19,378 -16% $16,210 -9%
Los Altos
Hills Finance Director 100% $14,964 $17,593 $20,221 0% $18,896 -7% Hillsborough
Director of
Finance 97% $17,539 $19,429 $21,318 -9% $18,896 -7%
Atherton Finance Director 94% $17,022 $18,363 $19,704 -4% $18,896 -7% Los Altos Finance Director 82% $17,604 $19,501 $21,398 -10% $18,896 -7% Los Altos
Hills
Public Works
Director 100% $15,767 $18,527 $21,286 0% $18,413 1%
Hillsborough
Director of Public
Works - City
Engineer 94% $18,744 $20,763 $22,781 -11% $18,413 1%
Atherton
Public Works
Director/City
Engineer 92% $16,962 $18,299 $19,635 1% $18,413 1%
Woodside
Town
Engineer/Director
of Public Works 84% $11,830 $17,745 $23,660 4% $18,413 1% *Removed Cupertino and Campbell due to larger scope covered by senior staff

PROPOSED

OPERATING

AND CAPITAL
BUDGET

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

TOWN OF LOS ALTOS HILLS

CALIFORNIA

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TABLE OF CONTENTS
CITY MANAGER’S BUDGET MESSAGE � � � � � � � � � � � � � � � � � 5 BUDGET PROCESS� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 21 TOWN INFORMATION � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 29

FINANCIAL AND PERSONNEL ALLOCATION
SUMMARIES� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 41 2025-26 City Council Priorities 42
Funds Overview 44
Town Wide Financial Summary 47
General Fund 48
Sewer Fund 50
Department Spending 51
Personnel Allocations 52
DEPARTMENT BUDGETS � � � � � � � � � � � � � � � � � � � � � � � � � � � 55 Department Overview 56
Cost Allocation 61
2025-26 City Council Goals 63
General Administration 67
Finance & Administrative Svcs 84
Public Safety 95
Community Development 100
Community Services 112
Public Works 123
GUIDE TO FIVE‐YEAR CIP � � � � � � � � � � � � � � � � � � � � � � � � � �138

CAPITAL IMPROVEMENT PLAN SUMMARY AND
FUNDING SOURCES � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �142 TOWN POLICIES� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �180 APPENDIX� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �208

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City Manager’s
Budget Message

6 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan City Manager’s Budget Message
City Manager’s Budget Message
To the Residents of the Town of Los Altos Hills, Honorable Mayor, and Members of the City Council:

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

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

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

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

I am pleased to report that the FY 2025-26 Proposed Budget is structurally balanced—ongoing revenues are sufficient to fund ongoing operating expenditures without relying on one-time resources. Excluding transfers for capital improvement projects, General Fund revenues are $18.5 million and expenditures are $18.2 million. However, the budget includes the planned use of reserves, specifically from the Facilities Replacement Reserve, to support select capital improvement projects. Core priorities remain: enhancing service levels, retaining staff, improving efficiency, supporting technology, complying with state mandates (such as Housing Element and CEQA-related updates), and promoting safety and resilience.

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

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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 7 City Manager’s Budget Message
severity zone maps, and wildfire risk reduction through defensible space strategies and hazard mitigation work.
> Increasing Effective Service Delivery and Governance: Projects include permitting system upgrades (TRAKiT), cost-of-service and user fee studies, an impact fee analysis, policy and process improvements, and continued updates to financial and administrative systems. > Protecting and Maintaining Infrastructure: Major efforts include the remodel of the Heritage House, improvements to the Corporation Yard, roadway and pathway upgrades, stormwater system enhancements, and ongoing sewer processing and conveyance negotiations with partner agencies.

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

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

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

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

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

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

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

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

8 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan City Manager’s Budget Message
Revenues
The FY 2025-26 revenue outlook is strong, with General Fund revenues—including allocations—projected to increase to $18.5 million, a 4.9% increase from final FY 2024-25 estimates and 4.0% over the FY 2024-25 adopted budget. Excluding allocations, General Fund revenues are projected at $15.1 million.

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

This growth is supported by a 2.0% CPI adjustment, reassessments following property sales, and an anticipated FY 2025-26 General Fund Revenues ($18.5M)
Property T Property Taxes axes
$9,483,540, 51.3% $9,483,540, 51.3%
Property Taxes
TTaxes Other Than Property axes Other Than Property
$610,750, 3.3% $610,750, 3.3%
Taxes Other Than Property
Franchise Fees Franchise Fees
$705,500, 3.8% $705,500, 3.8%
Franchise Fees
Licenses and Permits Licenses and Permits
$2,012,774, 10.9% $2,012,774, 10.9%
Licenses and Permits
Use of Money and Property Use of Money and Property
$955,186, 5.2% $955,186, 5.2%
Use of Money and Property Intergovernmental Subventions Intergovernmental Subventions $46,001, 0.2% $46,001, 0.2%
Intergovernmental Subventions
Charges for Services Charges for Services
$1,241,925, 6.7% $1,241,925, 6.7%
Charges for Services
Miscellaneous Revenues Miscellaneous Revenues
$18,000, 0.1% $18,000, 0.1%
Miscellaneous Revenues
Allocations In Allocations In
$3,407,530, 18.4% $3,407,530, 18.4%
Allocations In
Economic Outlook and Fiscal Position
While the Town’s near-term financial position is sound, broader economic uncertainty persists. Inflation remains elevated in select sectors, tariff risks have reemerged, and the yield curve remains inverted. Treasury yields declined in Q1 2025, signaling slowing growth expectations. If interest rates fall further, investment returns will likely decline, reducing General Fund revenues. In this environment, preserving structural balance will require active budget management and continued discipline in both operating and capital spending.

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

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

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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 9 City Manager’s Budget Message
increase in Excess Educational Revenue Augmentation Fund (ERAF) revenue. The estimate is based on data from the County Assessor’s Office and analysis by the Town’s revenue consultant, HdL Companies.

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

Use of Money and Property revenues—which include both investment income and rental income—is projected at $1.0 million for FY 2025-26, an approximate 40.1% decrease from final FY 2024-25 estimates and 15.0% under the FY 2024-25 adopted budget.

Investment income continues to perform well due to elevated interest rates and the addition of a sweep account that captures earnings on idle cash balances. However, investment income remains sensitive to monetary policy shifts. While the Federal Reserve has held rates steady through mid-2025, market consensus now anticipates three quarter-point rate cuts beginning in September 2025, driven by moderating inflation and signs of softening in the labor market. As these reductions take effect, reinvestment returns are expected to decline, particularly for short-term instruments.

For FY 2025–26, interest earnings are projected using varying assumptions to reflect each investment type’s sensitivity to rate changes. CAMP/PFM is budgeted at 3.75%, below its current 4.15% yield, with a weighted average maturity of 995 days that helps preserve higher returns as rates decline. LAIF is budgeted at 2.9%, below its current 4.3% yield, with a 233-day maturity that makes it more sensitive to rate cuts. The Wells Fargo Sweep account is budgeted at 2.6%, below its 4.2% yield, with a 43-day maturity that is expected to reprice quickly with market changes. This approach balances strong current performance with a realistic outlook for declining yields.

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

10 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan City Manager’s Budget Message
General Fund Expenditures
General Fund expenditures–including allocations–are projected at $18.2 million in FY 2025-26, a 12.2% increase from final FY 2024-25 estimates and 0.0% under the FY 2024-25 adopted budget. Excluding allocations, General Fund expenditures are estimated at $13.7 million.

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

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

General Fund Revenues
$8,153,742 $8,153,742 $8,531,557 $8,531,557 $8,991,000 $8,991,000 $9,483,540 $9,483,540 $575,010 $575,010 $599,106 $599,106 $650,120 $650,120 $610,750 $610,750 $391,129 $391,129 $665,597 $665,597 $696,291 $696,291 $705,500 $705,500 $1,366,066 $1,366,066 $1,837,123 $1,837,123 $1,044,918 $1,044,918 $2,012,774 $2,012,774 $344,281 $344,281 $1,108,231 $1,108,231 $1,595,567 $1,595,567 $955,186 $955,186 $38,439 $38,439 $49,422 $49,422 $103,683 $103,683 $46,001 $46,001 $1,035,404 $1,035,404 $1,099,638 $1,099,638 $802,312 $802,312 $1,241,925 $1,241,925 $82,691 $82,691 $69,012 $69,012 $16,745 $16,745 $18,000 $18,000 Property Taxes
Taxes Other Than Property
Franchise Fees
Licenses and Permits
Use of Money and Property
Intergovernmental Subventions
Charges for Services
Miscellaneous Revenues
Allocations In
10k
100k
1M
10M
100M
2022-23
Actual
2023-24
Actual
2024-25
Est. Actual
2025-26
Budget
Proposal
$2,962,480 $2,999,794 $3,711,885 $3,407,530

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 11 City Manager’s Budget Message
Department Highlights
Public Safety
Public safety remains a major cost driver for the Town. The Public Safety budget is $4.1 million, a 10.2% increase from the FY 2024-25 adopted budget. The increase is driven largely by contract cost increases and the continued need for supplemental services.

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

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

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

Despite these reductions, key public safety investments will remain in place. The FY 2025-26 Budget includes $550,000 for private security services, $93,000 for ALPRs, $100,000 in overtime funding for deputies and FY 2025-26 General Fund Expenditures ($18.1M)
General Administration General Administration
$2,519,074, 14% $2,519,074, 14%
Finance & Administrative Services Finance & Administrative Services $1,616,028, 9% $1,616,028, 9%
Community Development Community Development
$4,919,808, 27% $4,919,808, 27%
Public W Public Works orks
$3,574,951, 20% $3,574,951, 20%
Public Safety Public Safety
$4,073,524, 22% $4,073,524, 22%
Non-Departmental Non-Departmental
$13,240, 0% $13,240, 0%
Community Services Community Services
$1,452,365, 8% $1,452,365, 8%

12 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan City Manager’s Budget Message
investigators to provide additional coverage during holidays or as needed throughout the year, and $60,000 for a law enforcement consultant—recommended by the Sheriff’s Contract Ad Hoc Committee—to help evaluate future service model options.

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

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

Community Development
The Community Development budget for FY 2025-26 is $4.9 million, a 6.2% decrease from the FY 2024-25 adopted budget. The decrease is due to the completion of several Housing Element tasks. However, ongoing long-range planning and the processing of complex, state-mandated applications will continue to place pressure on department resources through the coming year. Most Housing Element-related costs are budgeted in the Capital Improvement Program (CIP), with some expenses reflected in the Operating Budget.

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

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

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

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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 13 City Manager’s Budget Message
The Engineering budget decreased by $371,514, or 27%, primarily due to a reduction in billable professional and contract services now being handled by in-house staff. The Storm Drain Operations budget increased by $62,613, or 12% due to additional contract services to support the Storm Drainage Fee Study. The Street Operations budget increased by $71,685, or 9% due to higher personnel costs from bringing inspection services in-house. The Pathway Operations budget increased by $261,331, or 32% due to higher personnel costs.

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

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

The General Administration budget for FY 2025-26 is $2.5 million, a 9.2% increase from the FY 2024-25 adopted budget.

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

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

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

The General Fund Finance and Administrative Services budget for FY 2025-26 is $1.6 million, a 11.7% increase from the FY 2024-25 adopted budget. The increase is due to continued investment in financial and HR systems, the transfer of the recruitment budget from the Town Center, and higher insurance costs. It also includes a new 0.5 FTE Management Analyst, shared with Community Development, to support building deposit tracking, fee studies, budget development, and HR functions—reducing consultant reliance and improving interdepartmental support.

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

14 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan City Manager’s Budget Message
from the FY 2024-25 adopted budget. The decrease is due to a reduction in personnel costs as staffing is now a single Community Services Supervisor.

Staffing
The FY 2025-26 budget proposes a few staffing adjustments to meet operational needs. One Associate Engineer position is proposed to be reclassified to Project Manager to assist in managing engineers for land development reviews, encroachment permits, and CIPs. A contract Building Technician is proposed to be converted to a full-time role to provide consistent support for permitting and customer service. In addition, a new Management Analyst position is proposed, split between Finance and Community Development, to support building deposit tracking, analysis and collection of planning and building fees, budget development, and broader analytical needs across both departments. Finally, the vacant Assistant Director of Community Development position is proposed to be replaced with two Assistant Planners to better handle increased planning workload, improve responsiveness, and support long-range planning. The total number of budgeted positions would increase from 27 to 30 FTEs.

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

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

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

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

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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 15 City Manager’s Budget Message
FY 2025-26 Capital Projects by Category ($4.1M)
Infrastructure Infrastructure
$1,069,310, 33% $1,069,310, 33%
Pathways Pathways
$565,000, 17% $565,000, 17%
Road Rehabilitation Road Rehabilitation
$558,196, 17% $558,196, 17%
Sewer Sewer
$900,000, 28% $900,000, 28%
VVehicle and Equipment ehicle and Equipment
$100,000, 3% $100,000, 3%
WWestwind Community Barn estwind Community Barn
$50,000, 2% $50,000, 2%
Sewer Fund
The Sewer Fund is fully supported by sewer service charges to residential and non- residential customers and sewer connection fee assessments on new connections to the Town’s sewer system. The Town’s sewer service charge rates have annually increased since FY 2022-23 per the sewer rate study conducted in 2022, due to substantial increases to waste treatment costs from Palo Alto as the regional treatment facility requires significant capital improvements and upgrades to adhere to regulatory requirements. Additionally, the capital needs for the Town’s infrastructure have increased.

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

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

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

16 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan City Manager’s Budget Message
funded. While the unfunded pension liability is significant, the Town has set aside approximately $2.1 million in a Section 115 Pension Trust and another $0.5 million in a General Fund Pension Reserve. The budget incorporates the Finance and Investment Committee’s June 2, 2025 recommendation to transfer $1.0 million to the Section 115 Trust, to be invested in $100,000 increments over ten months. The Town expects to retain a consulting actuary to analyze the Town’s updated unfunded liability and provide options and considerations related to the existing funding that has been set aside for pensions. The Town’s Other Post Employment Benefits (OPEB) Trust is now underfunded by $59,461. The decrease is due to updated actuarial assumptions, unexpected plan experience (including higher retirements and new hires), and lower-than-expected investment returns.

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

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

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

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

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

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

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

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

The General Fund Stabilization Reserve will increase to $3.1 million, meeting the Town’s policy target of three months of operating costs and aligning with GFOA best practices. The Capital Projects Reserve remains at $3.4

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 17 City Manager’s Budget Message
million, preserving prior appropriations to fund approved but incomplete capital projects. The Facilities Replacement Reserve decreases to $3.0 million following the scaled-back Civic Center Improvements project, now focused on Parks and Recreation Building renovations. The Pension Contribution Reserve will drop to $0.5 million, reflecting the planned $1.0 million transfer to the Section 115 Trust based on the recommendation from the Finance and Investment Committee. The balance in the reserve was also updated to avoid counting the same funds twice. Other reserves include $1.25 million for disaster contingency and $509,000 for vehicle and equipment replacement.

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

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

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

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

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

Respectfully Submitted,
Peter Pirnejad, City Manager

18 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan City Manager’s Budget Message

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

GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 19 City Manager’s Budget Message
September 30, 2024
Thomas Leung
Finance Director
Town of Los Altos Hills, California
Dear Thomas:

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

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

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

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

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

Sincerely,
Michele Mark Levine
Director, Technical Services Center

20 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan City Manager’s Budget Message
Finance Department
Town of Los Altos Hills, California
9/30/2024
The Government Finance Officers Association
of the United States and Canada
The Certificate of Recognition for Budget Preparation is presented by the Government Finance Officers Association to those individuals who have been instrumental in their government unit achieving a Distinguished Budget Presentation Award. The Distinguished Budget Presentation Award, which is the highest award in governmental budgeting, is presented to those government units whose budgets are judged to adhere to program standards.
presents this
CERTIFICATE OF RECOGNITION FOR BUDGET PREPARATION to
Date:

Executive Director

Budget Process

22 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Budget Process
Budget Process
Budget Process Overview
Beginning in FY 2024–25, the Town of Los Altos Hills transitioned to a two-year budget cycle. Previously, the Town adopted an annual Operating Budget alongside a five-year Capital Improvement Plan. The new biennial budget includes detailed revenue and expenditure appropriations for each fiscal year, covering the period from July 1 through June 30. Budget documents are presented in a summary format and prepared on the same accounting basis as the Town’s financial statements, in accordance with Generally Accepted Accounting Principles (GAAP).

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

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

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

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

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

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

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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 23 Budget Process
Proprietary Fund Types include the Enterprise and Internal Service Funds, are used to account for the Town’s business-type activities. Proprietary Funds are reported using the economic resources measurement focus and full accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

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

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

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

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

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

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

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

24 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Budget Process
Budget Adoption
The development of the Town’s operating and capital budgets is a continuous, year-round process, with formal compilation and analysis occurring over approximately three months. It begins with a review of mid-year actual revenues and expenditures, presented to the City Council through the Mid-Year Financial Update. This mid-year information is carried forward into the new budget development cycle.

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

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

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

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

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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 25 Budget Process
Budgetary Control
The City Council is responsible for appropriating the funds necessary to support the Town’s operating and capital activities. Budgetary control is exercised at the department level to ensure adherence to approved spending plans.

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

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

26 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Budget Process
Budget Calendar
Beginning in FY 2024–25, the Town of Los Altos Hills transitioned to a two-year budget cycle. This is expected to provide a longer view of operational revenues and expenses, as well as a mid-cycle labor savings. This labor savings will allow for a more comprehensive review of the Town’s Capital Plan, and the budgets for the capital projects contained therein.

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

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

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

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

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

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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 27 Budget Process
> City Council adoption of the Town’s Appropriation Limit.

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

(This Page Intentionally Left Blank)

Town
Information

30 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Town Infor
mation
Town Profile
Town History
The Town of Los Altos Hills encompasses nine square miles, making it one of the smallest incorporated towns in Santa Clara County. There is an additional 5.2 square miles of unincorporated land adjacent to the Town’s boundaries designated within the Town’s “sphere of influence” and may be subject to the Town’s guidelines or annexation.

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

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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 31 Town Infor
mation
Personal Income and Unemployment
Per Capita Personal Income Unemployment Rate
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
0 25,000
50,000
75,000
100,000
125,000
150,000
175,000
200,000
225,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

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

0.0%

20.0%

40.0%

60.0%

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

32 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Town Information
Population
Year Los Altos Hills Santa Clara County California
2013 8,354 1,871,000 37,684,000
2014 8,330 1,867,000 38,054,000
2015 8,658 1,888,000 38,441,000
2016 8,634 1,902,000 39,071,000
2017 8,580 1,932,510 39,337,785
2018 8,559 1,932,340 39,437,463
2019 8,413 1,927,850 39,437,610
2020 8,390 1,936,259 35,538,223
2021 8,400 1,907,693 39,303,157
2022 8,414 1,894,783 39,185,605
2023 8,477 1,902,799 39,061,058
2024 8,476 1,903,198 39,128,162

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 33 Town Infor
mation
2025 City Council
Mayor Kavita Tankha
Term of Office: November 2026
Vice Mayor Rajiv Bhateja
Term of Office: November 2029
Councilmember Linda G. Swan
Term of Office: November 2029
Councilmember Stanley Q. Mok
Term of Office: November 2029
Councilmember George K. Tyson
Term of Office: November 2026

34 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Town Infor
mation
Residents of Los Altos Hills
Planning Commission
City Council Volunteer Advisory
Committees (13)
City Attorney
Contract
Mayor and
City Council
City Manager
Community
Development
Director
City Clerk
Administrative
Services /
Finance Director
Senior Planner
Admin. Clerk/
Technician
Building
Technician/
Inspector (2)
Administrative
Clerk/Technician
Accounting
Technician
Associate
Planner
Management
Analyst
Assistant
Planner (2)
Public Safety
Contract
SCC Office of
the Sheriff
Emergency
Services
Manager
Contract
Public Works
Director
& City
Engineer
Project
Manager
Assistant
Engineer (2)
Maintenance
Worker I
Maintenance
Superintendent
Maintenance
Worker II
Maintenance
Worker III (2)
Utility
Engineering
Manager
Public Works
Inspector
IT Services
Contract
Senior
Accountant
(2)
Community
Services
Supervisor
Deputy City
Manager
Management
Analyst (0.5)
Management
Analyst (0.5)

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 35 Town Infor
mation
Town Information
Standing Committees, Commission, and Volunteer Appointments The Town of Los Altos Hills offers residents many opportunities to contribute to its direction and vision and to making the Town a place that is the best it can be for all who call it home. Residents are invited to weigh in on major initiatives and suggest beneficial improvements for the Town. Residents can address the City Council at all meetings, and volunteers serve on a variety of committees. The meetings of the standing committees follow California’s Open Meeting Laws (also known as the Ralph M. Brown Act). Roster as of May 2025 appointments.

Emergency Preparedness and Response Committee
City Council Liaison: Rajiv Bhateja

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

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

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

ASSOCIATE MEMBERS
Kjell Karlsson Hajime Murakami

36 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Town Infor
mation
Environmental Initiatives
City Council Liaison: George Tyson

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

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

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

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

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

ASSOCIATE MEMBERS
Joe Heinrich Deanna Tryon Barry Smith

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 37 Town Infor
mation
LA-LAH Joint Community Volunteer Service Awards
City Council Liaison: Stan Mok/Neysa Fligor

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

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

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

ASSOCIATE MEMBERS
Ben Gikis

38 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Town Infor
mation
Open Space
City Council Liaison: Stan Mok

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

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

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

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

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 39 Town Infor
mation
Pathways
City Council Liaison: Linda Swan

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

ASSOCIATE MEMBERS
Val Metcalfe
Planning Commission
Staff Liaison: Jay Bradford

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

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

ASSOCIATE MEMBERS

40 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Town Infor
mation
Technology Commission
City Council Liaison: Rajiv Bhateja

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

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

Financial and
Personnel
Allocation
Summaries

42 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
City Council Priorities Budget Highlights
Priority Area General Fund - Operating
Estimated Amount
2025-26
Maintain Quality of Life and
Community Character Community Building through Town-wide Events and Activities $ 150,000 Housing Element Programs $ 500,000
Housing Element Amendment $ 100,000
Water Conservation (WELO)
Our Town Publication
Promote Public Safety Emergency Preparedness
Complete Safety Element $ 50,000
Fire Hazard Severity Zone Update $ 10,000
Emrgency Communication Items from EPRC (Sound Study,
ALERT SCC) $ 130,000
HIZ (Home Ignition Zone)
Increase Effective Service Delivery &
Governance TRAKiT & eTRAKiT Upgrades $ 130,000
Land Use Element Updates $ 25,000
Impact Fee Assessment $ 20,000
Heat Pump Rebates $ 10,000
Electrification Assessments $ 10,000
Reach Codes 2025
Leaf Blower Regulation Implementation
Deposit/Permit Tracking Report
Permit Fee Audit Study
Cost Service Study
New Building Permit Fee Schedule $ 20,000
Green House Gas Inventory $ 17,000
FY 2025-26 Annual Financial Report $ 50,000
Maximize functions of EPR system and change to online
payment $ 20,000
Explore an Agenda Management System $ 20,000
Continue Employee Enhancement & Retention
Program + Onboarding new employees
Internal Purchasing Policy
Town Survey $ 30,000
Expired Permit Management
Code Enforcement Program Evaluation
Upgrade the Town’s Website $ 20,000
Protect and Maintain Infrastructure Summerhill Avenue Pathway (Phase 2 & 3) $ 100,000 - $150,000 Pathway Fee Nexus Study
Middle Fork to Maple Court Path $ 50,000 - $300,000
Work with the Pathways Committee to reprioritize the
order of pathways to be worked on throughout the year $ 300,000 - $900,000 Subtotal of General Fund (Estimated) $ 1,902,000 - $2,802,000

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 43 Financial and Personnel Allocation Summaries
City Council Priorities Budget Highlights (Continued)
Priority Area Capital Projects
Estimated Amount
2025-26
Infrastructure BROADBAND INFRASTRUCTURE $ -
BYRNE PRESERVE RESTORATION $ 101,310
CABLE SERVICE COST SHARING PROGRAM $ 50,000
CORPORATION YARD IMPROVEMENTS $ -
CORPORATION YARD LOCKER ROOM $ -

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

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

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

44 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Funds Overview
Town of Los Altos Hills
Budgetary Funds
Operations
Funds
Enterprise
Funds
Special Revenue
Funds
Capital Project
Funds
011 General
Fund
048 Sewer
Fund CIP
016 Parks & Rec
In-lieu Fund
041 General
CIP Fund
051 Sewer
Fund
019 American Rescue
PLan Act Fund
042 Pathways
CIP
021 COPS
Fund
043 Westwind
Barn CIP
071 Special
Donations
045 Drainage
CIP
046 Street
CIP
061 General Service
Fund (Internal Service
Fund)

Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan 45 Financial and Personnel Allocation Summaries
Fund Description
Fund Fund Description
011 General Fund is the primary operating fund of the Town and is used to account for most day‐to‐day activities.

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

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

46 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Town-Wide Fund Summary
2025-26 Budget Summary
Fund No Fund Title
Estimated Fund Balance @
7/1/2025 Revenue Expenditure Transfers In/(Out)
Projected Fund Balance @
6/30/2026
% Change in
Fund Balance
General Fund
011 General Fund
Pension Trust (Restricted) $ 2,209,137 $ - $ - $ 2,209,137 General Fund Stabilization Reserve 3,113,623 - - 3,113,623 Capital Projects Reserve 3,407,739 - - - 3,407,739
Disaster Contingency Reserve 1,250,000 - - 1,250,000
Facilities Replacement Reserve 3,017,081 - - 3,017,081
Pension Contribution Reserve 535,439 - - 535,439
Technology Reserve - - - - -
Vehicle & Equip Reserve 409,000 - - 100,000 509,000
Unassigned Fund Balance 2,737,798 18,481,207 (18,162,369) (1,613,070) 1,443,565 Subtotal $ 16,679,817 $ 18,481,207 $ (18,162,369) $ (1,513,070) $ 15,485,584 -7.2% Internal Service Fund
061 General Service Fund $ 822,325 $ 1,426,106 $ (1,426,106) $ - $ 822,325 Subtotal $ 822,325 $ 1,426,106 $ (1,426,106) $ - $ 822,325 0.0% Special Revenue Funds
016 Parks & Recreation in-Lieu $ 463,136 $ 15,974 $ - $ 479,110 019 American Rescue Plan Act (ARPA) - - - -
021 COPS Fund 1,541 115,000 - (116,541) (0)
071 Special Donation 34,472 - - 34,472
Subtotal $ 499,149 $ 130,974 $ - $ (116,541) $ 513,582 2.9% Capital Funds
041 General Capital $ 1,180,551 $ - $ (1,169,310) $ 1,169,310 $ 1,180,551 042 Pathway Capital 910,568 150,376 (565,000) - 495,944 043 Westwind Barn Capital 374,004 50,000 (50,000) - 374,004 045 Drainage Capital 703,564 80,498 - (40,000) 744,062
046 Street Capital 316,631 975,675 (1,465,000) 489,325 316,631 Subtotal $ 3,485,318 $ 1,256,550 $ (3,249,310) $ 1,618,635 $ 3,111,193 -10.7% Sewer Funds
048 Sewer CIP $ - $ (906,620) $ 900,000 (6,620)
051 Sewer Operations-Exc Depreciator 4,699,667 4,401,444 (4,226,442) (889,024) 3,985,644 Subtotal $ 4,699,667 $ 4,401,444 $ (5,133,062) $ 10,976 $ 3,979,024 -15.3% All Funds $ 26,186,276 $ 25,696,280 $ (27,970,848) $ - $ 23,911,709 -8.7%

47 Town of Los Altos Hills | FY 2025-26 Operating Budget and FY 2026-2030 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Town-Wide Financial Summary
General Fund Special Revenue Funds Capital Project Funds Enterprise Funds (Sewer Funds) Internal Service Funds Total All Funds 2024-25
Est. Actual
2025-26
Budget
Proposal
2024-25
Est. Actual
2025-26
Budget
Proposal
2024-25
Est. Actual
2025-26
Budget
Proposal
2024-25
Est. Actual
2025-26
Budget
Proposal
2024-25
Est. Actual
2025-26
Budget
Proposal
2024-25
Est. Actual
2025-26
Budget
Proposal
Revenues
Property Taxes $ 8,991,000 $ 9,483,540 $ - $ - $ - $ - - $ - $ - - $ 8,991,000 $ 9,483,540 Taxes Other Than Property 650,120 610,750 - - - - - - - - 650,120 610,750 Franchise Fees 696,291 705,500 - - - - - - - - 696,291 705,500 Licenses and Permits 1,044,918 2,012,774 - - - - - - - - 1,044,918 2,012,774 Use of Money and Property 1,595,567 955,186 14,368 15,974 164,509 100,875 351,516 166,116 - - 2,125,960 1,238,150 Intergovernmental Subventions 103,683 46,001 194,664 115,000 1,040,562 868,575 - - - - 1,338,909 1,029,576 Charges for Services 802,312 1,241,925 - - 502,817 287,100 6,691 - - - 1,311,820 1,529,025 Miscellaneous Revenues 16,745 18,000 - - 4,091,696 - 2,293 - - - 4,110,734 18,000 Allocations In 3,711,885 3,407,530 - - - - - - 1,228,422 1,426,106 4,940,307 4,833,636 Sewer Connection Fees - - - - - - 211,884 129,430 - - 211,884 129,430 Sewer Assessment Charges - - - - - - 3,719,000 4,105,898 - - 3,719,000 4,105,898 Total Revenues $ 17,612,520 $ 18,481,207 $ 209,032 $ 130,974 $ 5,799,585 $ 1,256,550 $ 4,291,383 $ 4,401,444 $ 1,228,422 $ 1,426,106 $ 29,140,942 $ 25,696,280 Expenditures by Function
General Administration $ 1,986,746 $ 2,519,074 $ - $ - $ - $ - - $ - $ - - $ 1,986,746 $ 2,519,074 Finance & Administrative Services 1,518,605 1,616,028 - - - - - - 955,450 1,021,892 2,474,056 2,637,920 Public Safety 3,633,097 4,073,524 2,100 - - - - - - - 3,635,197 4,073,524 Community Development 4,368,989 4,919,808 - - - - - - - - 4,368,989 4,919,808 Community Services 1,474,574 1,452,365 - - - - - - - - 1,474,574 1,452,365 Public Works 3,199,794 3,574,951 - - - - 3,872,591 4,226,442 272,970 404,214 7,345,354 8,205,607 Capital Projects - - 2,091 - 7,511,970 3,249,310 508,520 906,620 - - 8,022,581 4,155,930 Non-Departmental 1,267 6,620 - - - - - - - - 1,267 6,620 Total Expenditures $ 16,183,073 $ 18,162,369 $ 4,191 $ - $ 7,511,970 $ 3,249,310 $ 4,381,111 $ 5,133,062 $ 1,228,420 $ 1,426,106 $ 29,308,765 $ 27,970,848 Operating Surplus/(Deficit) $ 1,429,447 $ 318,837 $ 204,841 $ 130,974 (1,712,386) $ (1,992,760) (89,727) $ (731,619) $ 2 $ - $ (167,822) $ (2,274,567) Transfers In/(Out)
Transfers In 903,299 - - - 2,538,168 1,658,635 910,452 910,976 - - 4,351,919 2,569,611 Transfers Out (2,598,814) (1,513,070) (813,105) (116,541) (40,000) (40,000) (900,000) (900,000) - - (4,351,919) (2,569,611) Total Transfers In/(Out) $ (1,695,515) $ (1,513,070) $ (813,105) $ (116,541) $ 2,498,168 $ 1,618,635 $ 10,452 $ 10,976 $ - $ - $ - $ - Change in Fund Balance (266,068) (1,194,233) (608,264) 14,433 785,782 (374,125) (79,275) (720,643) 2 - (167,822) (2,274,567) Beginning 16,945,885 16,679,817 1,107,413 499,149 2,699,536 3,485,318 10,842,131 10,762,856 822,323 822,325 32,417,288 32,249,465 Ending Fund Balance $ 16,679,817 $ 15,485,584 $ 499,149 $ 513,582 $ 3,485,318 $ 3,111,193 $ 10,762,856 $ 10,042,213 $ 822,325 $ 822,325 $ 32,249,466 $ 29,974,898

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. Organizations that have received grants in the last five years are listed below.
2020-21
Actual
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Actual
Friends of Deer Hollow Farms 5,000 5,000 6,000 5,000 5,000 Hidden Villa 10,000 100,000 10,000 10,000 10,000
Los Altos Chamber of Commerce 5,000 15,000 5,000 5,000 5,000 Community Services Agency 5,000 - 25,000 25,000 10,000
Counseling and Support Services for Youth (CASSY) 10,000 Community Health Awareness Council 16,550 120,200 34,000 34,040 - NCLA 11,339 6,308 - - -
Los Altos Mountain View Community Foundation
(LAMVCF) 5,000 - 5,000 5,000 -
Department Staffing:

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

Funds were provided to Friends of Deer Hollow Farm, Hidden Villa, Los Altos Chamber of Commerce, Community Services Agency, and Counseling and Support Services for Youth (CASSY) 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.