Los Altos Hills City Council
May 15, 2026

1 City Council and FIC Special Meeting Agenda
May 15, 2026
LAH Agenda
September 28.docx j

NOTICE IS HEREBY GIVEN THAT A SPECIAL MEETING OF THE

LOS ALTOS HILLS CITY COUNCIL AND FINANCE AND INVESTMENT

COMMITTEE WILL BE HELD ON
FRIDAY, MAY 15, 2026, AT 10:00 A.M.

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

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

To attend the meeting in person:

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

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

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

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

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

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

Before speaking, please identify yourself by name and where you reside. The City Council meeting will be live-streamed on the Town’s website and via zoom at the following location:
https://bit.ly/SpecialJointMay15
ID: 843 7053 9587
Password: 94022

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

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

STUDY SESSION
Friday, May 15 2026 at 10:00 A.M.

Council Chambers, 26379 Fremont Road

2 City Council and FIC Special Meeting Agenda
May 15, 2026
Public testimony will be taken at the direction of the Mayor and members of the public may only comment during times allotted for public comments.

CALL TO ORDER (10:00 AM)

1. ROLL CALL

2. PLEDGE OF ALLEGIANCE

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

4. STUDY SESSION
A. Study Session Regarding Proposed FY 2026-27 & 2027-28 Operating Budget and the FY 2026-27 to FY 2030-31 Five-Year Capital Improvement Plan (Staff: T. Leung)

5. ADJOURN

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

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

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

Proposed

OPERATING

AND CAPITAL
BUDGET

F O R F I S C A L Y E A R
2026-2027 & 2027-2028

TOWN OF LOS ALTOS HILLS

CALIFORNIA

(This Page Intentionally Left Blank)

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

FINANCIAL AND PERSONNEL ALLOCATION
SUMMARIES� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 40 Funds Overview 41
General Fund Revenue 46
Department Spending (Exclusive of Capital Outlay)
- Five-Year 49
Personnel Allocations 50
DEPARTMENT BUDGETS � � � � � � � � � � � � � � � � � � � � � � � � � � � 53 Department Overview 54
Cost Allocation 59
2026-27 City Council Goals 61
General Administration 64
Finance & Administrative Svcs 81
Public Safety 92
Community Development 97
Community Services 110
Public Works 120
GUIDE TO FIVE‐YEAR CIP � � � � � � � � � � � � � � � � � � � � � � � � � �135

CAPITAL IMPROVEMENT PLAN SUMMARY AND
FUNDING SOURCES � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �139 TOWN POLICIES� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �173 APPENDIX� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �201

(This Page Intentionally Left Blank)

City Manager’s
Budget Message

6 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 2026-27 and FY 2027-28 Operating Budget and the FY 2027–31 Five-Year Capital Improvement Plan for the Town of Los Altos Hills. This marks the first year of the Town’s two-year operating budget. While the first year of the two-year budget focuses on operations, the second year will shift more attention to capital planning and long-term initiatives. The two-year budget structure provides a long-range planning framework while allowing for mid-cycle updates.

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 guide investments in infrastructure, service delivery, staffing, and community resilience.

I am pleased to report that the FY 2026-27 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 $20.3 million and expenditures are $19.5 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.

While the Town has historically maintained operating surpluses, expenditures are increasing at a rate that outpaces projected revenue growth, reinforcing the need for continued fiscal discipline and proactive long-term planning. A primary driver is the Santa Clara County Sheriff’s contract, which is increasing by approximately $700,000 this fiscal year as the County transitions toward full cost recovery. To help offset rising service delivery costs and maintain longterm structural balance, the Town is also proposing updates to Planning, Building, and Engineering fees, informed by a cost-of-service analysis prepared by NBS, to better align revenues with the actual cost of providing services.

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.
2026 and 2027 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 2026-27. This year the Work Plan has been organized by departments:
> Administrative Services/Finance
> City Clerk’s
> City Manager’s
> Community Development
> Community Services
> Public Works
This approach more accurately reflects departmental capacity and better captures the amount of staff bandwidth available to take on and complete projects.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 7 City Manager’s Budget Message
Although the FY 2026-27 Budget is categorized by departments, the goals still align with the priority goals framework and consists of 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, 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, upgrading the security camera and alarm systems at all Town Facilities.
> 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 included the emergency HVAC Upgrade at Town Hall and Council Chambers, 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, 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 2026-27. The Work 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/544/2026-27-City-Council-Work-Plan.

Two years ago, the Town adopted a two-year Work Plan (January 2024 – December 2025). In January 2025, the City Council conducted a mid-cycle review and update of the adopted two-year Work Plan to account for emerging priorities and changing conditions.

The process of assembling a new two-year Work Plan begins with a review of the previously adopted priorities.

In early 2024, staff presented a proposed set of projects informed by the goals of the City Council, the Planning Commission, the Town’s standing committees, and Town staff. The full Work Plan and supporting materials were presented to the City Council on January 23, 2024, with formal adoption following on February 15, 2024. Prior to Council consideration, staff reviewed and prioritized proposed goals, and the final Work Plan incorporated public input and Council direction, resulting in a document that reflected a shared vision for Town operations over the two-year period.

Between July 2024 and July 2025, a total of 86 projects were included in the Work Plan, reflecting both the original scope and evolving priorities. The Council initially adopted 63 projects as part of the 2024-2025 Work Plan, with additional items incorporated throughout the year as new challenges emerged. 23 projects were added following the January 2025 mid-cycle review to address emerging needs, while staff continued to make significant progress on key initiatives including Housing Element amendments, wildfire mitigation programs, revised user and impact fees, and infrastructure improvements.

In July 2025, staff calculated that approximately 21% of projects have been completed from the 2024-2025 Work Plan and many other projects were reaching critical milestones. However, the growing number and complexity of initiatives, combined with finite staff capacity and budget constraints, mean that several projects from the 2024- 2025 Work Plan were expected to extend into the 2026-2027 Work Plan.

8 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan City Manager’s Budget Message
Economic Outlook and Fiscal Position
While the Town’s near-term financial position remains stable, broader economic uncertainty continues to pose risks.

Inflation has reaccelerated in 2026, with CPI reaching 3.3% annually in March — the highest since May 2024 and well above the Federal Reserve’s 2% target — driven by energy price increases tied to the Iran conflict, alongside persistent service-sector and tariff-related pressures.

Interest rates remain a significant budget uncertainty. The Federal Reserve has held its benchmark rate at 3.5%–

3.75% through three consecutive meetings in 2026, delaying but not abandoning a rate-cutting cycle that began in late 2025. The Fed’s March projections still signal one cut this year, though timing depends heavily on how the conflict and its inflationary effects unfold. Some economists have warned that persistent energy-driven inflation could lead the Fed to forgo cuts entirely. While higher rates could support the Town’s investment earnings, they also introduce headwinds for housing activity, development, and broader economic growth.

The Town’s financial outlook also remains partially dependent on continued growth in property tax revenues.

California assessed property values reached a record $9.1 trillion for the January 1, 2025 lien date, but future growth is not guaranteed. Elevated rates and geopolitical uncertainty have added headwinds for real estate activity, and a sustained housing slowdown could dampen assessed value growth and ownership turnover. Planning and Building revenue faces similar sensitivity to development activity, permit volume, and market conditions.

In this environment, preserving structural balance will require active budget management and continued discipline in operating and capital spending. Despite these risks, the Town’s strong reserves and prudent financial practices provide a solid foundation to absorb volatility and maintain service levels in the year ahead.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 9 City Manager’s Budget Message
Revenues
The FY 2026-27 revenue outlook is strong, with General Fund revenues—including allocations—projected to increase to $20.3 million, a 12.6% increase from final FY 2025-26 estimates and 10.0% over the FY 2025-26 adopted budget.

The Town’s largest and most stable revenue source—property tax—continues to show steady growth. Property tax revenues are estimated at $10.1 million for FY 2026-27, a 4.2% increase from final FY 2025-26 estimates and

6.0% over the FY 2025-26 adopted budget. This growth is supported by a 2.0% CPI adjustment, reassessments following property sales, and an anticipated 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. ERAF-related revenues remain subject to ongoing statewide litigation and other factors affecting school funding allocations.

License and Permits revenues are projected at $2.0 million for FY 2026-27. This represents an increase of 54.6% from final FY 2025-26 estimates and 1.0% over the FY 2025-26 adopted budget, largely driven by expected adjustments from the fee study.

Charges for Services revenues—which include Planning and Engineering Building Permit reviews and Parks & Recreation Programs—are projected at $2.6 million for FY 2026-27, an approximate 135.0% increase from final FY 2025-26 estimates and 111.0% over the FY 2025-26 adopted budget, primarily driven by expected adjustments from the fee study.

The Town engaged NBS to conduct a comprehensive cost-of-service study for the Planning, Building, and Engineering Divisions, alongside an updated Cost Allocation Plan that establishes the indirect cost basis for fully burdened hourly rates. The study was presented to the Finance and Investment Committee on April 6, May 4, and May 11, 2026, and is scheduled for Council consideration on May 14, 2026. New fees would take effect 30 days after Council adoption, consistent with State law. If Council modifies the proposed schedule at adoption — including through FY 2026-27 General Fund Revenues ($20.3M)
Property T Property Taxes axes
$10,084,964, 49.8% $10,084,964, 49.8%
Property Taxes
TTaxes Other Than Property axes Other Than Property
$688,289, 3.4% $688,289, 3.4%
Taxes Other Than Property
Franchise Fees Franchise Fees
$724,679, 3.6% $724,679, 3.6%
Franchise Fees
Licenses and Permits Licenses and Permits
$2,032,006, 10.0% $2,032,006, 10.0%
Licenses and Permits
Use of Money and Property Use of Money and Property
$805,714, 4.0% $805,714, 4.0%
Use of Money and Property
Intergovernmental Subventions Intergovernmental Subventions $37,080, 0.2% $37,080, 0.2%
Intergovernmental Subventions Charges for Services Charges for Services $2,621,790, 12.9% $2,621,790, 12.9%
Charges for Services
Miscellaneous Revenues Miscellaneous Revenues
$18,540, 0.1% $18,540, 0.1%
Miscellaneous Revenues
Allocations In Allocations In
$3,244,867, 16.0% $3,244,867, 16.0%
Allocations In

10 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan City Manager’s Budget Message
FY 2026-27 General Fund Revenues
$8,531,557 $8,531,557 $8,945,716 $8,945,716 $9,677,635 $9,677,635 $10,084,964 $10,084,964 $599,106 $599,106 $705,338 $705,338 $758,597 $758,597 $688,289 $688,289 $665,597 $665,597 $695,019 $695,019 $745,623 $745,623 $724,679 $724,679 $1,837,123 $1,837,123 $1,179,792 $1,179,792 $1,314,470 $1,314,470 $2,032,006 $2,032,006 $1,108,231 $1,108,231 $1,543,251 $1,543,251 $860,457 $860,457 $805,714 $805,714 $49,422 $49,422 $147,375 $147,375 $36,872 $36,872 $37,080 $37,080 $1,099,638 $1,099,638 $1,247,996 $1,247,996 $1,1 $1,115,608 15,608 $2,621,790 $2,621,790 $69,012 $69,012 $1$115,607 15,607 $68,478 $68,478 $18,540 $18,540 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
2023-24
Actual
2024-25
Actual
2025-26
Est. Actual
2026-27
Budget
Proposal
$2,999,794 $3,391,544 $3,407,530 $3,244,867
phased implementation, project-type incentives, or adoption below full cost recovery — Licenses and Permits and Charges for Services revenues would be correspondingly reduced.

Use of Money and Property revenues—which include both investment income and rental income—is projected at $0.8 million for FY 2026-27, an approximate 6.4% decrease from final FY 2025-26 estimates and 16.0% under the FY 2025-26 adopted budget.

Investment income continues to perform well due to elevated interest rates and the addition of a sweep account in FY 2024-25 that captures earnings on idle cash balances. However, investment income remains sensitive to monetary policy shifts. The Federal Reserve cut its benchmark rate three times in 2025, lowering the federal funds target range to 3.5%–3.75% by December. The Fed has since held that target range unchanged through its April 2026 meeting, reflecting a cautious posture amid persistent inflation and competing risks to employment.

Market consensus now largely expects the Fed to remain on hold for the remainder of 2026, though the outlook is subject to change depending on how inflation and labor market conditions evolve. Should additional rate reductions materialize, reinvestment returns are expected to decline further, particularly for short-term instruments.

The FY 2026-27 investment income projection reflects a conservative budgeting approach that accounts for gradually moderating interest rates while continuing to benefit from the Town’s diversified investment structure. Based on projected balances and a blended average yield assumption of approximately 2.9%, total investment income is projected at approximately $808,000. The budget assumes that higher-yielding investments will gradually mature and be reinvested at lower market rates over time.

Other revenue categories—including franchise fees, intergovernmental subventions, and miscellaneous sources— are expected to remain stable. However, Planning and Building revenues continue to fluctuate, reflecting the timing of major development projects. Cost recovery in Planning remains low due to non-reimbursable, unfunded statemandated activities such as the Housing Element implementation and updates to the Safety Element.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 $4.6 million, a 11.9% increase from the FY 2025-26 adopted budget. The increase is driven largely by higher contract costs with the Santa Clara County Sheriff’s Office.

The Santa Clara County Sheriff’s Office contract is increasing from $2.7 million to $3.4 million, a $0.7 million, or 25%, increase, as the County moves to recover the full cost of providing law enforcement services to West Valley cities using a new cost-recovery model that fully charges cities for overhead. The increase reflects rising deputy FY 2026-27 General Fund Expenditures ($19.5M)
General Administration General Administration
$2,538,580, 13% $2,538,580, 13%
Finance & Administrative Services Finance & Administrative Services $1,707,366, 9% $1,707,366, 9%
Community Development Community Development
$5,275,471, 27% $5,275,471, 27%
Public W Public Works orks
$3,885,383, 20% $3,885,383, 20%
Public Safety Public Safety
$4,559,981, 23% $4,559,981, 23%
Non-Departmental Non-Departmental
$0, 0% $0, 0%
Community Services Community Services
$1,568,882, 8% $1,568,882, 8%
General Fund Expenditures
General Fund expenditures–including allocations–are projected at $19.5 million in FY 2026-27, a 10.8% increase from final FY 2025-26 estimates and 8.0% over the FY 2025-26 adopted budget.

Personnel costs are increasing due to two staffing changes, as well as rising health and pension obligations. The budget includes a new full-time Principal Planner (Planning Manager) and converts a contract Code Enforcement Officer to a full-time role. A merit-based contingency is provided to fund any salary increases. The Code Enforcement Officer conversion reduces reliance on contract staff, which results in an overall decrease in Contractual Services costs.

Public safety remains the City’s largest contractual service cost and is the primary driver of expenditure growth this fiscal year. The Santa Clara County Sheriff’s Office contract is increasing from $2.7 million to $3.4 million, a $0.7 million, or 25%, increase, as the County moves to recover the full cost of providing law enforcement services to West Valley cities using a new cost-recovery model that fully charges cities for overhead.

Professional services and operations budgets remain consistent with prior years.

12 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan City Manager’s Budget Message
salaries and benefits, expanded state-mandated training requirements, and new technology obligations, including body-worn cameras. The Town is actively negotiating with the County and exploring options to phase in the increase to maintain budget stability.

The FY 2026-27 Budget includes $550,000 for supplemental private security patrol services to support burglary deterrence and public safety efforts in coordination with the Sheriff’s Office.

One cost area not yet reflected in the FY 2026-27 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 after the end of the fiscal year 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 2026-27 is $5.3 million, a 7.2% increase from the FY 2025-26 adopted budget. The increase is driven primarily by higher personnel and operational costs associated with ongoing longrange planning efforts, implementation of state-mandated housing requirements, and processing of complex applications, all of which continue to place pressure on department resources through the coming year.

The FY 2026-27 Planning Division budget reflects continued demands related to Housing Element implementation and long-range planning, which have significantly impacted staff workload and resource needs. Revenues are projected at $1,629,449, and expenditures are expected to increase by 22% compared to FY 2025-26, 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. One structural change in this year’s budget is that Housing Element implementation activities, which were previously tracked through CIP projects, have been moved into the operating budget to better align with the Town’s fiscal organization and accounting structure.

The FY 2026-27 Building Division budget reflects ongoing investment to support strong development activity and improved service delivery. While actual revenues in FY 2025-26 came in below projections due to delays in large project starts, overall permit volumes remain robust, and revenues are expected to rebound in FY 2026-27 as deferred activity proceeds. The Building divisions projected expenses are anticipated to decrease 8% in FY 2026-27 compared to FY 2025-26. Continued investments in permitting technology and implementation of updated user fees from the recent User Fee Study will enhance efficiency, customer service, and long-term financial sustainability.

The department proposes converting a contract Code Enforcement Officer to a full-time role in response to rising contract costs, with the in-house position expected to provide ongoing cost savings.

Public Works
The General Fund Public Works budget for FY 2026-27 is $3.9 million, a 8.7% increase from the FY 2025-26 adopted budget.

The Engineering budget increased by $581,344, or 57%, largely due to reallocation of staff from other programs.

As part of the updated fee study and cost allocation methodology, engineering staff previously allocated across Planning and Building for development-related work are now budgeted directly within Engineering.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 13 City Manager’s Budget Message
The Storm Drain Operations budget increased by $18,590, or 3% due to additional contract services to support the Storm Drainage Fee Study. The Street Operations budget decreased by $123,651, or 14% due to reallocation of staff to other programs. The Pathway Operations budget decreased by $165,849, or 15% due to reallocation of staff to other programs.

In the Internal Service Fund, the Corporation Yard budget increased by $29,047, or 13% largely due to increased personnel costs and the Vehicle Operations budget decreased by $10,750, or 6%, primarily due to cost reductions in operations. In the Sewer Fund, the Sewer Operating budget decreased by $557,284, or 9%, 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 2026-27 is $2.5 million, a 0.8% increase from the FY 2025-26 adopted budget.

The FY 2026-27 City Manager’s budget reflects a decrease in personnel costs from underfilling the Deputy City Manager position with an Assistant to the City Manager position, along with a reduced allocation of the position’s costs to the CMO budget. Additionally, the City Manager’s Contingency has been increased by an additional $10,000.

The FY 2026-27 City Attorney’s budget increased due to higher contract costs with Redwood Public Law. 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.

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 2025-26, 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 2026-27 is $1.7 million, a 6.2% increase from the FY 2025-26 adopted budget. The increase is due to increased costs of financial and HR systems and higher insurance costs.

Community Services
The Community Services budget includes: Recreation Administration, Recreation Programs, Special Events, Parks, and Westwind Community Barn. The Community Services budget for FY 2026-27 is $1.6 million, a 8.0% increase from the FY 2025-26 adopted budget. The increase is primarily due to increased costs in Parks.

Staffing
The FY 2026-27 budget proposes a few staffing adjustments to meet operational needs. The budget includes a new full-time Principal Planner to support long-range planning efforts and converts a contract Code Enforcement Officer to a full-time role in response to rising contract costs, with the in-house position expected to provide

14 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan City Manager’s Budget Message
ongoing cost savings. The Deputy City Manager is also being underfilled as an Assistant to the City Manager. The total number of budgeted positions would increase from 30 to 32 FTEs.

Salary Schedule
In April 2025, the Town completed a comprehensive compensation study that aligned salaries with the median of the market for comparable agencies in the local labor market. Building on that foundation, the FY 2026–27 Salary Schedule applies a 3% CPI-based adjustment to all positions.

Beginning July 1, 2026, cost-of-living adjustments will be applied uniformly on July 1 rather than on each employee’s individual anniversary date. This change, which emerged as a recommendation from the Town’s stay interview process, promotes fairness across staff, simplifies administration, and aligns salary adjustments with the annual budget cycle. The one-time transition cost of approximately $37,000 — reflecting mid-cycle adjustments for employees whose anniversary dates fall after July 1 — will be absorbed within the existing merit contingency budget. All individual salary changes beyond the CPI adjustment remain merit-based.

Capital Improvement Plan
Over the past year, the Town has made steady progress on priority infrastructure projects. In FY 2025-26, 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.

In FY 2025-26, the Town completed the El Monte Fire Station Undergrounding Project (Rule 20A) and the Heritage House project.

In addition to continuing core programs, the FY 2026-27 CIP includes new projects such as the Heritage House Native Garden, as well as re-scoped projects including the Parks and Recreation Building Replacement and the Town Hall and Council Chambers HVAC Improvements.

The Annual Road Rehabilitation Project remains the cornerstone of the CIP and is funded at $1.4 million in FY 2026-27. 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 2026-27 for capital improvements to maintain the Town’s collection and distribution system.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 15 City Manager’s Budget Message
FY 2026-27 Capital Projects by Category ($5.1M)
Infrastructure Infrastructure
$2,340,349, 46% $2,340,349, 46%
Pathways Pathways
$188,697, 4% $188,697, 4%
Road Rehabilitation Road Rehabilitation
$1,410,000, 28% $1,410,000, 28%
Sewer Sewer
$900,000, 18% $900,000, 18%
Storm Drain Storm Drain
$80,000, 2% $80,000, 2%
VVehicle and Equipment ehicle and Equipment
$100,000, 2% $100,000, 2%
WWestwind Community Barn estwind Community Barn
$50,000, 1% $50,000, 1%
Sewer Fund
The Sewer Fund is fully supported by sewer service charges to residential and non- residential customers and sewer connection fee assessments on new connections to the Town’s sewer system. The Town’s sewer service charge rates have annually increased since FY 2022-23 per the sewer rate study conducted in 2022, due to substantial increases to waste treatment costs from Palo Alto as the regional treatment facility requires significant capital improvements and upgrades to adhere to regulatory requirements. Additionally, the capital needs for the Town’s infrastructure have increased.

FY 2026-27 is the last year for the sewer service charge rate increase from the sewer rate study. it may be necessary to conduct another sewer rate study in FY 2026-27 in preparation for FY 2027-28.

The Town also started discussions with the Cities of Palo Alto and Los Altos to amend the sewer treatment and conveyance agreements, which would alter how the Town would be billed on sewer charges, to a more fair and industry acceptable approach. The timeline of these negotiations will have an impact on when the new sewer rate study would need to be conducted.

Long Term Debt
The Town has no long-term debt as of the year ending June 30, 2026. 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, 2024, the Town’s Unfunded Actuarial Liability (UAL) is approximately $3.7 million, with a funded ratio of 83.5%. The required UAL contribution

16 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan City Manager’s Budget Message
is approximately $0.4 million for FY 2026-27, which has been incorporated in the operating budget. The Town maintains three pension plans: Classic Miscellaneous, Second Tier, and PEPRA. 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. In FY 2025-26, the Town transferred $1.0 million from the General Fund Pension Reserve to the Section 115 Trust. 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 2026-27.

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 2026-27 budget process, the Town reviewed and updated its reserves to ensure alignment with adopted policy targets, actual funding needs, and best practices. A detailed summary of reserve levels, including projected year-end balances, is provided in the Financial Summary section.

Financial Summary
As of July 1, 2026, the Town’s General Fund reserves are projected at $17.0 million, decreasing to $15.4 million by June 30, 2027. The Unassigned Fund Balance is expected to decrease from $3.9 million to $2.2 million, due to transfers to fund capital projects.

The General Fund Stabilization Reserve is projected at $3.1 million, meeting the Town’s policy target of three months of operating costs and consistent with GFOA best practices. The Capital Projects Reserve remains at $2.4 million, preserving prior appropriations for approved but incomplete projects. The Facilities Replacement Reserve totals $3.0 million. The Pension Contribution Reserve decreases to $0.5 million following a $1.0 million transfer

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 17 City Manager’s Budget Message
to the Section 115 Trust in FY 2025–26. Additional 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 and FY 2025-26 Biennial 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 2026-27 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 2026-27 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,
Cody Einfalt, Acting City Manager

18 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 12 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 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 31 Town Infor
mation
Personal Income and Unemployment
Per Capita Personal Income Unemployment Rate
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

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
2014 8,658 1,015,063 117,239 2.7% 50.3 98.1% 82.8%
2015 8,634 1,028,190 119,086 2.4% 51.1 98.0% 83.7%
2016 8,580 1,214,396 141,538 2.2% 51.4 97.1% 83.5%
2017 8,559 1,211,424 141,538 2.6% 51.4 97.1% 83.5%
2018 8,413 1,234,482 146,735 14.9% 52.3 97.3% 84.3%
2019 8,390 1,302,757 155,274 4.2% 51.1 97.3% 85.3%
2020 8,400 1,299,447 154,696 3.4% 52.2 98.5% 87.6%
2021 8,414 1,437,120 170,801 2.8% 53.5 99.1% 86.3%
2022 8,477 1,473,616 173,837 3.5% 53.5 99.2% 85.6%
2023 8,477 1,473,616 173,837 3.5% 53.5 99.2% 85.6%
2024 8,548 1,485,959 173,837 2.8% 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 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Town Infor
mation
Population
Year Los Altos Hills Santa Clara County California
2014 8,658 1,888,000 38,441,000
2015 8,634 1,902,000 39,071,000
2016 8,580 1,932,510 39,337,785
2017 8,559 1,932,340 39,437,463
2018 8,413 1,927,850 39,437,610
2019 8,390 1,936,259 39,538,223
2020 8,400 1,907,693 39,303,157
2021 8,414 1,894,783 39,185,605
2022 8,477 1,902,799 39,061,058
2023 8,476 1,903,198 39,128,162
2024 8,476 1,903,198 39,128,162
2025 8,476 1,903,198 39,128,162

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 33 Town Infor
mation
2026 City Council
Councilmember Kavita Tankha
Term of Office: November 2026
Mayor Rajiv Bhateja
Term of Office: November 2029
Vice Mayor 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 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Town Infor
mation
Residents of Los Altos Hills
Planning Commission
City Council Volunteer Advisory
Committees (12)
City Attorney
Contract
Mayor and
City Council
City Manager
Community
Development
Director
City Clerk
Administrative
Services /
Finance Director
Principal
Planner*
Admin. Clerk/
Technician
Building
Technician/
Inspector (2)
Permit
Technician
Accounting
Technician
Senior
Planner
Assistant to
the City
Manager
Assistant
Planner (2)
Public Safety
Contract
SCC Office of
the Sheriff
Emergency
Services
Manager
Contract
Public Works
Director
& City
Engineer
Project
Manager
Associate
Engineer (2)
Maintenance
Worker I
Maintenance
Superintendent
Maintenance
Worker II
Maintenance
Worker III (2)
Utility
Engineering
Manager
Engineering
Technician
IT Services
Contract
Senior
Accountant
(2)
Community
Services
Supervisor
Management
Analyst
Management
Analyst (1.5)
Management
Analyst (0.5)
Code
Enforcement
Officer*
* New position proposed

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 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 2026 appointments.

Emergency Preparedness and Response Committee
City Council Liaison: Rajiv Bhateja

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

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

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

ASSOCIATE MEMBERS
Kjell Karlsson Hajime Murakami Peter Brown
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
Johann George 1st May 2027
George Lee 1st February 2027

36 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Town Infor
mation
Vrinda Bhandarkar 2nd October 2028
April Anair 3rd October 2028
Aileen Lee 2nd November 2029
Vacant
Vacant
Vacant

ASSOCIATE MEMBERS
Kunjan Shah Kit Gordon Raj Reddy
Jay Shideler Serena Giori
Finance and Investment
City Council Liaisons: Rajiv Bhateja/George Tyson

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
Amy Young 1st September 2029
Vatsal Sonecha 1st December 2029
Vacant

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

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

ASSOCIATE MEMBERS
Nancy Traficanti Deanna Tryon Joe Heinrich
Barry Smith
LA-LAH Joint Community Volunteer Service Awards
City Council Liaison: Stan Mok/Jonathan Weinberg

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

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 37 Town Infor
mation
Sandy Mingia 2nd March 2027
Kelly Davis 1st January 2027
Ben Gikis 1st July 2028
Donald Mattson 2nd March 2027
Laura Schmidt 1st January 2029
LA-LAH Library Commission
City Council Liaison: Linda Swan/Larry Lang

MEMBERS TERM TERM EXPIRATION
Michelle Morris (Chair) 1st September 2027
Christine Fawcett, LAH (Vice Chair) 1st January 2027
Pierre Bedard 2nd September 2029
Ambica Bhardwaj 1st September 2029
Jeanine Valadez 1st September 2029
Vacant Los Altos
Vacant LAH
LA-LAH Senior Commission
City Council Liaison: Stan Mok/Sally Meadows

MEMBERS TERM TERM EXPIRATION
Kris Olson (Chair) 1st September 2027
Nomi Trapnell (Vice Chair) 1st September 2026
Dolores Gallagher Thompson 1st September 2026
Jamshid “Jim” Basiji 3rd August 2027
Sharvari Dixit 1st September 2027
Vacancy Los Altos
Vacancy Los Altos

ASSOCIATE MEMBERS
Ben Gikis
Open Space
City Council Liaison: Stan Mok

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

ASSOCIATE MEMBERS
Sharen Schoendorf George Clifford Hayley Louth Ditzler
Kit Gordon Karen Lemes Jean Struthers

38 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Town Infor
mation
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
Pathways
City Council Liaison: Linda Swan

MEMBERS TERM TERM EXPIRATION
NIck Erndt (Chair) 1st November 2028
Mike Orlando (Vice Chair) 1st July 2028
Marc Gurwith 1st October 2028
Michael Henshaw 1st October 2028
John Lewis 1st February 2030
Richard Partridge 2nd February 2027
Vacant
Vacant
Vacant

ASSOCIATE MEMBERS
Val Metcalfe
Planning Commission
Staff Liaison: Jay Bradford

MEMBERS TERM TERM EXPIRATION
Birgitta Indaco (Chair) 2nd June 2028
Jim Waschura (Vice Chair) 2nd June 2028
Alisa Bredo 1st June 2026
Rajiv Patel 3rd June 2026
Malika Junaid 1st June 2028
Technology Commission
City Council Liaison: Rajiv Bhateja

MEMBERS TERM TERM EXPIRATION
Ameesh Divatia (Chair) 2nd March 2030

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 39 Town Infor
mation
Annie Ju (Vice Chair) 2nd March 2030
John Swan (Secretary) 1st January 2027
George Lee 2nd March 2030
Sam Wood 1st January 2029
Andreas Bibl 1st September 2029
Rajesh Shakkarwar 1st September 2029
Augustin Farrugia 1st October 2029
Lew Jamison 2nd October 2029

ASSOCIATE MEMBERS
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

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 41 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)

42 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 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.

43 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Town-Wide Fund Summary
2026-27 Budget Summary 2027-28 Budget Summary
Fund No Fund Title
Estimated Fund
Balance @
7/1/2026 Revenue Expenditure
Transfers In/
(Out)
Projected Fund
Balance @
6/30/2027
% Change
in Fund
Balance
Estimated Fund
Balance @
7/1/2027 Revenue Expenditure
Transfers In/
(Out)
Projected Fund
Balance @
6/30/2028
% Change
in Fund
Balance
General Fund
011 General Fund
Pension Trust (Restricted) $ 2,341,873 $ - $ - $ 2,341,873 $ 2,341,873 $ - $ - $ - $ 2,341,873 General Fund Stabilization
Reserve 3,113,623 - - 3,113,623 3,113,623 - - - 3,113,623 Capital Projects Reserve 2,444,798 - - 2,444,798 2,444,798 - - - 2,444,798 Disaster Contingency Reserve 1,250,000 - - 1,250,000 1,250,000 - - - 1,250,000 Facilities Replacement Reserve 3,017,081 - - 3,017,081 3,017,081 - - - 3,017,081 Pension Contribution Reserve 535,439 - - 535,439 535,439 - - - 535,439 Technology Reserve - - - - - - - - - -
Vehicle & Equip Reserve 409,000 - - 100,000 509,000 509,000 - - 100,000 609,000 Unassigned Fund Balance 3,861,145 20,257,929 (19,535,663) (2,401,459) 2,181,952 2,181,952 20,762,932 (19,839,389) (1,405,596) 1,699,899 Subtotal $ 16,972,959 $ 20,257,929 $ (19,535,663) $ (2,301,459) $ 15,393,766 -9.3% $ 15,393,766 $ 20,762,932 $ (19,839,389) $ (1,305,596) $ 15,011,713 -2.5% Internal Service Fund
061 General Service Fund $ 1,015,635 $ 1,588,769 $ (1,494,682) $ - $ 1,109,722 $ 1,109,722 $ 1,588,769 $ (1,528,891) $ - $ 1,169,601 Subtotal $ 1,015,635 $ 1,588,769 $ (1,494,682) $ - $ 1,109,722 9.3% $ 1,109,722 $ 1,588,769 $ (1,528,891) $ - $ 1,169,601 5.4% Special Revenue Funds
016 Parks & Recreation in-Lieu $ 476,051 $ 13,598 $ - $ 489,649 $ 489,649 $ 12,420 $ - $ - $ 502,069 019 American Rescue Plan Act (ARPA) - - - - - - - - -
021 COPS Fund - 150,000 - (150,000) - - 150,000 - (150,000) - 071 Special Donation 34,488 - - 34,488 34,488 - - - 34,488 Subtotal $ 510,539 $ 163,598 $ - $ (150,000) $ 524,137 2.7% $ 524,137 $ 162,420 $ - $ (150,000) $ 536,557 2.4% Capital Funds
041 General Capital $ 564,765 $ - $ (2,004,749) $ 2,004,749 $ 564,765 $ 564,765 $ - $ (1,057,000) $ 1,057,000 $ 564,765 042 Pathway Capital 1,005,558 147,087 (193,349) - 959,296 959,296 124,740 (104,652) - 979,384 043 Westwind Barn Capital 139,614 62,279 (51,278) - 150,615 150,615 62,279 (51,278) - 161,616 045 Drainage Capital 87,051 63,454 (85,227) - 65,278 65,278 53,155 (55,227) - 63,206 046 Street Capital - 978,844 (1,414,146) 435,302 - - 1,027,300 (1,414,146) 386,846 - Subtotal $ 1,796,989 $ 1,251,664
$
- $ (3,748,749) $ 2,440,051 $ 1,739,954 -3.2% $ 1,739,954 $ 1,267,474 $ (2,682,303) $ 1,443,846 $ 1,768,971 1.7% Sewer Funds
048 Sewer CIP $ - $ (911,885) $ 911,885 - $ - $ - $ (911,885) $ 911,885 $ - 051
Sewer Operations-Exc
Depreciator 4,843,147 4,598,823 (4,552,007) (900,477) 3,989,486 3,989,486 4,585,397 (4,582,371) (900,134) 3,092,378 Subtotal $ 4,843,147 $ 4,598,823 $ (5,463,892) $ 11,408 $ 3,989,486 -17.6% $ 3,989,486 $ 4,585,397 $ (5,494,256) $ 11,751 $ 3,092,378 -22.5% All Funds $ 25,139,268 $ 27,860,783 $ (30,242,985) $ - $ 22,757,065 -9.5% $ 22,757,065 $ 28,366,992 $ (29,544,839) $ - $ 21,579,220 -5.2%

44 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Town-Wide Financial Summary
General Fund Special Revenue Funds Capital Project Funds Sewer Fund Internal Service Funds 2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
Revenues
Property Taxes $9,677,635 $10,084,964 $10,501,369 $- $- $- - $- $- - $- $- $- $- $- Taxes Other Than
Property 758,597 688,289 701,655 - - - - - - - - - - - - Franchise Fees 745,623 724,679 744,187 - - - - - - - - - - - - Licenses and Permits 1,314,470 2,032,006 2,088,263 - - - - - - - - - - - - Use of Money and
Property 860,457 805,714 752,964 12,561 13,598 12,420 86,559 92,820 90,174 200,114 154,979 141,553 - - - Intergovernmental
Subventions 36,872 37,080 38,193 251,537 150,000 150,000 776,867 778,844 817,300 - - - - - - Charges for Services 1,115,608 2,621,790 2,672,337 - - - 340,284 380,000 360,000 1,973 - - - - - Miscellaneous
Revenues 68,478 18,540 19,097 15 - - 773,286 - - - - - - - - Allocations In 3,407,530 3,244,867 3,244,867 - - - - - - - - - 1,426,106 1,588,769 1,588,769 Sewer Connection
Fees - - - - - - - - - 126,631 158,000 158,000 - - -
Sewer Assessment
Charges - - - - - - - - - 4,086,401 4,285,844 4,285,844 - - - Total Revenues $17,985,268 $20,257,929 $20,762,932 $264,112 $163,598 $162,420 $1,976,995 $1,251,664 $1,267,474 $4,415,120 $4,598,823 $4,585,397 $1,426,106 $1,588,769 $1,588,769 Expenditures by
Function
General
Administration $ 2,440,523 $ 2,538,580 $ 2,558,675 $ - $ - $ - - $ - $ - - $ - $ - $ - $ - $ - Finance &
Administrative
Services 1,596,142 1,707,366 1,734,016 - - - - - - - - - 1,082,159 1,072,171 1,093,101 Public Safety 3,986,913 4,559,981 4,733,968 - - - - - - - - - - - - Community
Development 5,098,613 5,275,471 5,327,134 - - - - - - - - - - - - Community Services 1,274,253 1,568,882 1,576,363 - - - - - - - - - - - - Public Works 3,224,897 3,885,383 3,909,236 - - - - - - 4,049,006 4,552,007 4,582,371 270,176 422,511 435,789 Capital Projects - - - - - - 4,305,925 3,748,749 2,682,303 611,223 911,885 911,885 - - - Non-Departmental 6,620 - - - - - - - - - - - - - -
Total Expenditures $17,627,960 $19,535,663 $19,839,392 $ - $ - $ - $ 4,305,925 $ 3,748,749 $ 2,682,303 $ 4,660,229 $ 5,463,892 $ 5,494,256 $ 1,352,335 $ 1,494,682 $ 1,528,891

45 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Town-Wide Financial Summary
General Fund Special Revenue Funds Capital Project Funds Sewer Funds Internal Service Funds 2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
Operating Surplus/
(Deficit) $ 357,308 $ 722,266 $ 923,540 $ 264,112 $ 163,598 $ 162,420 (2,328,930) $(2,497,085) $(1,414,829) (245,109) $ (865,069) $ (908,859) $ 73,771 $ 94,087 $ 59,878 Transfers In/(Out)
Transfers In 251,537 150,000 150,000 - - - 2,139,290 2,440,051 1,443,846 622,299 923,293 923,636 - - - Transfers Out (2,110,366) (2,451,459) (1,455,597) (251,537) (150,000) (150,000) (40,000) - - (611,223) (911,885) (911,885) - - - Total Transfers In/
(Out) $ (1,858,829) $ (2,301,459) $ (1,305,597) $ (251,537) $ (150,000) $ (150,000) $ 2,099,290 $ 2,440,051 $ 1,443,846 $ 11,076 $ 11,408 $ 11,751 $ - $ - $ - Change in Fund
Balance (1,501,521) (1,579,193) (382,057) 12,575 13,598 12,420 (229,640) (57,034) 29,017 (234,033) (853,661) (897,108) 73,771 94,087 59,878 Beginning 18,474,500 16,972,979 15,393,786 497,963 510,538 524,136 2,026,629 1,796,989 1,739,955 6,806,948 4,843,147 3,989,486 - 73,771 167,858 Ending Fund Balance $16,972,979 $15,393,786 $15,011,729 $ 510,538 $ 524,136 $ 536,556 $ 1,796,989 $ 1,739,955 $ 1,768,972 $ 4,843,147 $ 3,989,486 $ 3,092,378 $ 73,771 $ 167,858 $ 227,736

46 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
General Fund Revenue and Expenditures by Category
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
2027-28
Budget
Plan
$ Difference
2026-27 to
2027-28
% Difference
2026-27 to
2027-28
Revenues
Property Taxes $ 8,153,742 $ 8,531,557 $ 8,945,716 $ 9,483,540 $ 9,677,635 $ 10,084,964 $ 601,424 6% $ 10,501,369 $ 416,405 4% Taxes Other Than Property 575,010 599,106 705,338 610,750 758,597 688,289 77,539 13% 701,655 13,366 2% Franchise Fees 391,129 665,597 695,019 705,500 745,623 724,679 19,179 3% 744,187 19,508 3% Licenses and Permits 1,366,066 1,837,123 1,179,792 2,012,774 1,314,470 2,032,006 19,232 1% 2,088,263 56,257 3% Use of Money and Property 344,281 1,108,231 1,543,251 955,186 860,457 805,714 (149,472) -16% 752,964 (52,750) -7% Intergovernmental Subventions 38,439 49,422 147,375 46,000 36,872 37,080 (8,920) -19% 38,193 1,113 3% Charges for Services 1,035,404 1,099,638 1,247,996 1,241,926 1,115,608 2,621,790 1,379,864 111% 2,672,337 50,547 2% Miscellaneous Revenues 82,691 69,012 115,607 18,000 68,478 18,540 540 3% 19,097 557 3% Allocations In 2,962,480 2,999,794 3,391,544 3,407,530 3,407,530 3,244,867 (162,663) -5% 3,244,867 - 0% Total Revenues $ 14,949,242 $ 16,959,479 $ 17,971,639 $ 18,481,206 $ 17,985,268 $ 20,257,929 $ 1,776,723 10% $ 20,762,932 $ 505,003 2% Expenditures
Personnel $ 3,948,097 $ 4,269,910 $ 4,808,842 $ 5,518,512 $ 5,137,915 $ 6,177,608 $ 659,099 12% $ 6,350,522 $ 172,915 3% Contractual Services 4,747,417 5,871,804 5,436,859 6,018,859 6,223,892 6,591,719 572,860 10% 6,752,663 160,944 2% Professional Services 292,658 388,138 332,716 347,204 292,069 362,971 15,767 5% 365,129 2,158 1% Operations 1,106,878 1,160,146 1,255,707 1,662,735 1,462,703 1,818,925 156,190 9% 1,773,933 (44,992) -2% Capital Outlay Spending 23,429 - 330 - 776 5,000 5,000 0% 5,000 - 0% Miscellaneous Expenditures - - - 242,000 146,548 254,100 12,100 5% 266,805 12,705 5% Allocations Out 3,570,115 3,533,074 4,106,736 4,364,056 4,364,057 4,325,340 (38,717) -1% 4,325,340 - 0% Total Expenditures $ 13,688,594 $ 15,223,073 $ 15,941,191 $ 18,153,366 $ 17,627,960 $ 19,535,663 $ 1,382,299 8% $ 19,839,392 $ 303,730 2% Operating Surplus/(Deficit) $ 1,260,648 $ 1,736,406 $ 2,030,448 $ 327,840 $ 357,308 $ 722,266 $ 394,426 120% $ 923,540 $ 201,273 28% Transfers In/(Out)
Transfers In - (177,488) (813,742) - 251,537 150,000 150,000 0% 150,000 - 0% Transfers Out 2,585,871 1,725,369 1,330,599 1,513,070 (2,110,366) (2,451,459) 938,389 62% (1,455,597) (995,862) -41% Total Transfers In/(Out) $ (2,585,871) $ (1,547,881) $ (516,857) $ (1,513,070) $ (1,858,829) $ (2,301,459) $ (788,389) 52% $ (1,305,597) $ (517,208) 22% Change in Fund Balance $ (1,325,223) $ 188,525 $ 1,513,591 $ (1,185,230) $ (1,501,521) $ (1,579,193) $ (393,963) 33% $ (382,057) $ (315,935) 20% Fund Balance
Beginning 18,083,648 16,758,425 16,946,950 16,679,817 18,474,476 16,972,959 293,142 2% 15,393,764 (1,579,195) -9% Ending Fund Balance $16,758,425 $16,946,950 $18,474,476 $15,494,587 $16,972,959 $15,393,764 $ (100,823) -1% $15,011,711 $ (382,053) -2%

47 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Internal Service Fund Revenues and Expenditures by Category 2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
2027-28
Budget
Plan
$ Difference
2026-27 to
2027-28
% Difference
2026-27 to
2027-28
Revenues
Miscellaneous Revenues $ 11,601 $ 10,942 $ 11,544 $ - $ - $ - $ - 0% $ - $ - 0% Allocations In 1,003,314 911,652 1,169,709 1,426,106 1,426,106 1,588,769 162,663 11% 1,588,769 - 0% Total Revenues $ 1,014,915 $ 922,594 $ 1,181,253 $ 1,426,106 $ 1,426,106 $ 1,588,769 $ 162,663 11% $ 1,588,769 $ - 0% Expenditures
Personnel $ 36,154 $ 98,635 $ 141,810 $ 793,122 $ 462,668 $ 477,730 $ (315,391) -40% $ 489,800 $ 12,070 3% Contractual Services 267,525 258,395 297,917 351,000 499,897 419,531 68,531 20% 432,500 12,969 3% Professional Services 100,981 147,448 212,648 68,000 63,941 82,770 14,770 22% 84,842 2,072 3% Operations 419,728 294,366 407,648 495,364 324,783 502,150 6,786 1% 509,248 7,098 1% Capital Outlay Spending 5,772 2,606 (100,408) 133,138 1,045 12,500 (120,638) -91% 12,500 - 0% Miscellaneous Expenditures 175,351 172,133 194,259 - - - - 0% - - 0% Total Expenditures $ 1,005,512 $ 973,582 $ 1,153,874 $ 1,840,624 $ 1,352,335 $ 1,494,682 $ (345,942) -19% $ 1,528,891 $ 34,209 2% Operating Surplus/(Deficit) $ 9,403 $ (50,988) $ 27,379 $ (414,518) $ 73,771 $ 94,087 $ 508,605 -123.00% $ 59,878 $ (34,209) -36.00% Transfers In/(Out)
Transfers In
Transfers Out
Total Transfers In/(Out) $ - $ - $ - $ - $ - $ - $ - 0% $ - $ - 0%

48 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Sewer Fund
Financial Summary
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
2027-28
Budget
Plan
$ Difference
2026-27 to
2027-28
% Difference
2026-27 to
2027-28
Revenues
Use of Money and
Property $ 24,407 $ 171,190 $ 338,832 $ 166,116 $ 200,114 $ 154,979 $ (11,137) -7% $ 141,553 $ (13,426) -9% Charges for Services - 6,145 6,691 - 1,973 - $ - 0% - $ - 0% Miscellaneous
Revenues 1,946 7,049 2,293 - - - $ - 0% - $ - 0%
Sewer Connection Fees 97,754 154,081 182,857 129,430 126,631 158,000 $ 28,570 22% 158,000 $ - 0% Sewer Assessment
Charges 3,263,652 3,534,615 3,760,895 4,105,898 4,086,401 4,285,844 $ 179,946 4% 4,285,844 $ - 0% Total Revenues $ 3,387,759 $ 3,873,080 $ 4,291,568 $ 4,401,444 $ 4,415,120 $ 4,598,823 $ 197,379 4% $ 4,585,397 $ (13,426) -0% Expenditures
Personnel $ 353,709 $ 280,727 $ 297,862 $ 283,189 $ 281,763 $ 236,538 $ (46,651) -16% $ 243,402 $ 6,864 3% Contractual Services 2,088,210 2,461,461 2,665,525 3,436,000 3,287,941 3,746,000 $ 310,000 9% 3,856,000 $ 110,000 3% Professional Services 14,919 13,100 50,382 25,500 104,720 112,000 $ 86,500 339% 25,500 $ (86,500) -77% Operations 14,823 14,787 18,964 18,794 17,021 19,972 $ 1,178 6% 19,972 $ - 0% Capital Outlay Spending (95,244) (47,931) (89,773) 900,000 499,206 900,000 $ - 0% 900,000 $ - 0% Miscellaneous
Expenditures 260,918 260,918 276,183 - - - $ - 0% - $ - 0% Allocations Out 289,555 280,939 325,087 469,578 469,578 449,382 $ (20,196) -4% 449,382 $ - 0% Total Expenditures $ 2,926,890 $ 3,264,000 $ 3,544,229 $ 5,133,061 $ 4,660,229 $ 5,463,892 $ 330,831 6% $ 5,494,256 $ 30,364 1% Operating Surplus/
(Deficit) 460,869 609,080 747,339 (731,617) (245,109) (865,069) (133,452) 18% (908,859) (43,790) 5% Transfers In/(Out)
Transfers In 1,179,650 9,858 532,635 910,976 622,299 923,293 12,317 1% 923,636 343 0% Transfers Out (1,170,350) - (522,183) (900,000) (611,223) (911,885) (11,885) 1% (911,885) - 0% Total Transfers In/(Out) $ 9,300 $ 9,858 $ 10,452 $ 10,976 $ 11,076 $ 11,408 $ 432 $ 0 $ 11,751 $ 343 3%

49 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Department Spending (Exclusive of Capital Outlay and Sewer Operations) - Five-Year Comparison Expenditures
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
2027-28
Budget
Plan
$ Difference
2026-27 to
2027-28
% Difference
2026-27 to
2027-28
General Fund
General Administration $ 2,082,638 $ 1,734,065 $ 2,018,058 $ 2,519,073 $ 2,440,523 $ 2,538,580 $ 19,508 1% $ 2,558,675 $ 20,096 1% Finance & Administrative
Services 1,201,792 1,399,051 1,454,109 1,607,029 1,596,142 1,707,366 100,338 6% 1,734,016 26,650 2% Public Safety 2,342,287 3,630,942 3,288,791 4,073,524 3,986,913 4,559,981 486,457 12% 4,733,968 173,987 4% Community Development 3,613,076 4,193,926 4,432,193 4,919,806 5,098,613 5,275,471 355,666 7% 5,327,134 51,663 1% Community Services 1,494,969 1,481,576 1,643,097 1,452,365 1,274,253 1,568,882 116,518 8% 1,576,363 7,481 0% Public Works 2,835,134 2,783,512 3,104,944 3,574,949 3,224,897 3,885,383 310,432 9% 3,909,236 23,853 1% Non-Departmental 2,704,569 1,725,370 1,330,599 1,519,690 2,116,986 2,451,459 931,769 61% 1,455,597 (995,862) -41% Total Expenditures $ 16,274,465 $ 16,948,442 $ 17,271,790 $ 19,666,436 $ 19,738,327 $ 21,987,122 $ 2,320,688 12% $ 21,294,989 $ (692,132) -3% Internal Service Funds
Town Benefit $ (195,531) $ (122,702) $ (141,366) $ 143,006 $ 426,496 $ 100,000 $ (326,496) -77% $ 100,000 $ - 0% Town Center 904,050 817,965 1,028,784 939,152 1,009,914 972,171 (37,744) -4% 993,101 20,931 2% Corporation Yard Operations 146,584 142,482 154,287 163,599 225,288 254,335 29,048 13% 261,502 7,166 3% Vehicle Operations 146,230 131,657 112,169 106,577 178,926 168,176 (10,750) -6% 174,288 6,112 4% Office Equipment 4,179 4,179 - - - - - 0% - - 0%
Total Internal Service Funds $ 1,005,512 $ 973,582 $ 1,153,874 $ 1,352,335 $ 1,840,624 $ 1,494,682 $ (345,942) -19% $ 1,528,891 $ 34,209 2% Special Revenue Funds
General Administration $ 25,000 $ - $ - $ - $ - $ - $ - 0% $ - $ - 0% Public Safety 362,687 8,671 3,004 - - - - 0% - - 0%
Capital Projects 633,062 266,551 1,923 - - - - 0% - - 0% Total Special Revenue Funds $ 1,020,749 $ 275,222 $ 4,926 $ - $ - $ - $ - 0% $ - $ - 0% Enterprise Funds
Public Works $ 2,926,890 $ 3,263,894 $ 3,543,817 $ 4,226,441 $ 4,049,006 $ 4,552,007 $ 325,566 8% $ 4,582,371 $ 30,364 1% Capital Projects - - - 906,620 611,223 11,885 (894,735) -99% 11,885 - 0% Non-Departmental - 107 412 - - - - 0% - - 0%
Total Enterprise Funds $ 2,926,890 $ 3,264,000 $ 3,544,229 $ 5,133,061 $ 4,660,229 $ 4,563,892 $ (569,169) -11% $ 4,594,256 $ 30,364 1%

50 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
Personnel Allocations
FY2022/23 FY2023/24 FY2024/25 FY2025/26 FY2026/27 FY2027/28 General Administration
Administrative Clerk / Technician 1.0 1.0 1.0 1.0 1.0 1.0 Assistant to the City Manager - 0.8 1.0 - 1.0 1.0
City Clerk 1.0 1.0 1.0 1.0 1.0 1.0
City Manager 1.0 1.0 1.0 1.0 1.0 1.0
Deputy City Manager - - - 1.0 - -
Management Analyst - - 1.0 1.0 1.0 1.0
Management Analyst II 1.0 0.2 - - - -
Total General Administration 4.0 4.0 5.0 5.0 5.0 5.0
Finance & Administrative Services
Accountant 1.0 1.0 1.0 - - -
Accounting Technician 1.0 1.0 1.0 1.0 1.0 1.0
Administrative Services Director 1.0 1.0 - - - -
Finance Director - - 1.0 1.0 1.0 1.0
Senior Accountant 1.0 1.0 1.0 2.0 2.0 2.0
Total Finance & Administrative
Services 4.0 4.0 4.0 4.0 4.0 4.0
Community Development
Administrative Clerk / Technician 1.0 1.0 1.0 1.0 - -
Assistant Community Development
Director/Building Offical 1.0 1.0 1.0 - - -
Assistant Planner 1.0 1.0 - 2.0 1.0 1.0
Associate Planner - - 1.0 1.0 1.0 1.0
Building Inspector 1.0 1.0 - - - -
Building / Planning Technician 1.0 1.0 1.0 2.0 2.0 2.0
Code Enforcement Officer - - - - 1.0 1.0
Community Dev. Director - 1.0 1.0 1.0 1.0 1.0
Management Analyst - - - 1.0 2.0 2.0
Planning Director 1.0 - - - - -
Planning Permit Technician - - - - 1.0 1.0
Principal Planner 1.0 - - - 1.0 1.0
Senior Planner 1.0 2.0 1.0 1.0 1.0 1.0
Total Community Development 8.0 8.0 6.0 9.0 11.0 11.0
Community Services
Community Services Manager - 1.0 - - - -
Community Services Supervisor - - 1.0 1.0 1.0 1.0
Recreation Specialist 1.0 1.0 - - - -
Senior Community Services
Supervisor 1.0 - - - - -
Total Community Services 2.0 2.0 1.0 1.0 1.0 1.0

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 51 Financial and Personnel Allocation Summaries
Personnel Allocations (continued)
FY2022/23 FY2023/24 FY2024/25 FY2025/26 FY2026/27 FY2027/28 Public Works
Assistant Engineer 2.0 2.0 2.0 2.0 - -
Associate Engineer 1.0 1.0 1.0 - 2.0 2.0
Engineering Technician - - - - 1.0 1.0
Maintenance Superintendent 1.0 1.0 1.0 1.0 1.0 1.0
Maintenance Worker I 1.0 1.0 1.0 1.0 1.0 1.0
Maintenance Worker II 1.0 1.0 1.0 1.0 1.0 1.0
Maintenance Worker III 2.0 2.0 2.0 2.0 2.0 2.0
Project Manager - - - 1.0 1.0 1.0
Public Works Director / City
Engineer 1.0 1.0 1.0 1.0 1.0 1.0
Public Works Inspector - - 1.0 1.0 - -
Utilities Manager 1.0 1.0 1.0 1.0 1.0 1.0
Total Public Works 10.0 10.0 11.0 11.0 11.0 11.0
Summary
General Administration 4.0 4.0 5.0 5.0 5.0 5.0
Finance & Administrative Services 4.0 4.0 4.0 4.0 4.0 4.0 Community Development 8.0 8.0 6.0 9.0 11.0 11.0
Community Services 2.0 2.0 1.0 1.0 1.0 1.0
Public Works 10.0 10.0 11.0 11.0 11.0 11.0
Total 28.0 28.0 27.0 30.0 32.0 32.0
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.

52 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Financial and Personnel Allocation Summaries
FY 2027 Salary Schedule
Annual Range Hourly Range
Minimum Maximum Minimum Maximum
City Manager-Set by Contract TBD TBD salary
Deputy City Manager $ 171,302 $ 231,258 salary
Assistant to the City Manager $ 143,439 $ 193,644 salary Management Analyst II $ 118,350 $ 159,774 salary
Management Analyst $ 105,055 $ 141,825 $ 48.10 $ 64.94
City Clerk $ 147,288 $ 198,837 salary
Deputy City Clerk $ 93,145 $ 125,745 salary
Admin Clerk/Technician $ 81,718 $ 110,318 $ 38.51 $ 51.99 Administrative Services Director $ 208,525 $ 281,508 salary Finance Director $ 197,899 $ 267,432 salary
Finance Manager $ 162,016 $ 218,721 salary
Senior Accountant $ 130,638 $ 176,360 salary
Accountant $ 107,221 $ 144,746 $ 50.54 $ 68.23
Accounting Technician $ 97,135 $ 131,134 $ 45.78 $ 61.81 Accounting Office Assistant $ 85,402 $ 115,293 $ 39.48 $ 53.29 Community Development Director $ 208,525 $ 281,508 salary Assistant Community Development Director/Building $ 171,302 $ 231,258 salary Principal Planner $ 147,026 $ 198,486 salary
Senior Planner $ 130,438 $ 176,091 salary
Associate Planner $ 113,528 $ 153,261 $ 50.54 $ 68.23
Assistant Planner $ 96,082 $ 129,709 $ 43.58 $ 58.83
Building Official $ 148,569 $ 200,566 salary
Deputy Building Official/Plan Examiner $ 124,101 $ 167,531 salary Senior Building Inspector $ 116,682 $ 157,518 $ 50.54 $ 68.23 Building Inspector $ 103,333 $ 139,498 $ 43.58 $ 58.83
Building Technician $ 85,854 $ 115,903 $ 40.47 $ 54.63
Public Works Director & City Engineer $ 208,525 $ 281,508 salary Utility Engineering Manager $ 151,499 $ 204,525 salary
Project Manager $ 142,634 $ 192,554 salary
Senior Civil Engineer $ 142,634 $ 192,554 salary
Associate Engineer $ 121,831 $ 164,473 $ 55.78 $ 75.30
Assistant Engineer $ 108,056 $ 145,877 $ 48.10 $ 64.94
Engineering Technician $ 90,648 $ 122,375 $ 43.58 $ 58.83 Public Works Inspector $ 99,839 $ 134,780 $ 47.06 $ 63.53 Maintenance Superintendent $ 137,752 $ 185,966 salary
Maintenance Worker III $ 87,866 $ 118,619 $ 39.48 $ 53.29 Maintenance Worker II $ 75,766 $ 102,286 $ 34.04 $ 45.96 Maintenance Worker I $ 67,776 $ 91,497 $ 29.36 $ 39.63
Community Services Manager $ 128,467 $ 173,426 salary
Community Services Supervisor $ 106,055 $ 143,175 $ 48.10 $ 64.94 Recreation Specialist $ 66,716 $ 90,066 $ 30.84 $ 41.63

Department
Budgets

54 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Department Budgets
Department Overview
Includes Allocations, Excludes Transfers
Department/Division
2026-27
Budget
Proposal
General Administration
City Council, City Manager, City Attorney, City Clerk, Committees & Commissions $ 2,538,580 Finance & Administrative Services
Finance & Administrative Services, Community Services Grant, Insurance, Fringe Benefits, Town Center 2,779,537 Public Safety
Public Safety, Animal Control, Citizens Public Safety Program 4,559,981 Community Development
Planning Administration, Planning Commission, Code Enforcement Operations, Building Operations 5,275,471 Community Services
Community Services Administration, Recreation Programs, Special Events, Parks, Westwind Community Barn 1,568,882 Public Works
Engineering Administration, Sewer Operations, Storm Drain Operations, Street Operations, Pathway Operations, Corporation Yard Operations, Vehicle Operations 8,859,901 Total $ 25,582,352

55 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Department Budgets
Department Summary by Program
Expenditures
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
$ Difference
2025-26 Budget
to 2026-27
% Difference
2025-26 Budget
to 2026-27
General Administration
City Council (1100) $ 210,988 $ 321,796 $ 322,392 $ 472,993 $ 382,603 $ 410,454 $ (62,539) -13% City Manager (1200) 641,497 605,720 833,172 1,275,081 1,061,364 1,165,742 (109,339) -9% City Attorney (1500) 661,111 277,044 380,377 259,656 513,397 264,926 5,270 2% City Clerk (1300) 230,163 271,101 280,158 289,085 285,544 429,166 140,082 48% Committee & Commissions (1700) 338,879 258,403 201,958 222,258 197,614 268,292 46,034 21% American Rescue Plan (ARP) (1101) - - - - - - - 0%
Office Equipment (1490) 4,179 4,179 - - - - - 0%
Special Donations (0510) 25,000 - - - - - - 0%
Total General Administration $ 2,111,817 $ 1,738,244 $ 2,018,058 $ 2,519,073 $ 2,440,523 $ 2,538,580 $ 19,508 1% Finance & Administrative Services
Finance & Administrative Services
(1400) $ 847,596 $ 970,033 $ 1,028,924 $ 1,128,600 $ 1,134,006 $ 1,211,936 $ 83,337 7% Town Benefit (1470) (195,531) (122,702) (141,366) 426,496 143,006 100,000 (326,496) -77% Town Center (1480) 904,050 817,965 1,028,784 1,009,914 939,152 972,171 (37,744) -4% Insurance (1510) 253,286 344,334 383,545 433,924 417,668 450,585 16,661 4% Community Services Grant (1600) 100,910 84,684 41,640 44,505 44,468 44,845 340 1% Total Finance & Administrative
Services $ 1,910,310 $ 2,094,314 $ 2,341,527 $ 3,043,439 $ 2,678,300 $ 2,779,537 $ (263,902) -9% Public Safety
Public Safety (2100) $ 2,282,559 $ 3,567,900 $ 3,177,340 $ 3,890,069 $ 3,856,527 $ 4,379,317 $ 489,248 13% Animal Control (2150) 59,728 63,043 111,450 183,455 130,386 180,664 (2,791) -2% Citizens Public Safety Program (Cops)
(6100) 362,687 8,671 3,004 - - - - 0%
Total Public Safety $ 2,704,974 $ 3,639,613 $ 3,291,794 $ 4,073,524 $ 3,986,913 $ 4,559,981 $ 486,457 12% Community Development
Planning Administration (3100) $ 1,846,112 $ 1,989,910 $ 2,318,200 $ 2,282,684 $ 2,045,899 $ 2,803,213 $ 520,529 23% Planning Commission (3110) 92,440 142,861 89,149 145,587 133,129 136,992 (8,594) -6% Code Enforcement Operations (3120) 173,771 152,386 167,325 294,582 383,243 322,955 28,372 10% Building Operations (3200) 1,500,754 1,908,769 1,857,519 2,196,953 2,536,342 2,012,311 (184,641) -8% Total Community Development $ 3,613,076 $ 4,193,926 $ 4,432,193 $ 4,919,806 $ 5,098,613 $ 5,275,471 $ 355,666 7% Community Services
Community Services Administration
(1000) $ 815,623 $ 667,949 $ 785,906 $ 350,183 $ 330,211 $ 318,475 $ (31,708) -9%

56 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Department Budgets
Expenditures
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26 Est. Actual
2026-27
Budget
Proposal
$ Difference
2025-26 Budget
to 2026-27
% Difference
2025-26 Budget
to 2026-27
Recreation Programs (4110) 33,095 31,580 33,524 18,163 15,611 17,767 (396) -2% Special Events (4120) 166,817 279,533 249,357 288,006 220,529 348,108 60,101 21% Parks (5100) 198,541 193,129 233,844 333,007 308,119 393,954 60,948 18% Westwind Community Barn (5300) 280,894 309,386 340,467 463,006 399,783 490,578 27,573 6% Total Community Services$ 1,494,969$ 1,481,576$ 1,643,097$ 1,452,365$ 1,274,253$ 1,568,882$ 116,518 8% Public Works Engineering (3300)
$ 976,545$ 1,106,189$ 1,242,572$ 1,023,012$ 965,307$ 1,604,356$ 581,344 57% Sewer Operations (4800) 2,926,890 3,263,894 3,543,817 4,226,441 4,049,006 4,552,007 325,566 8% Storm Drain Operations (4500) 554,327 390,021 405,213 567,121 509,071 585,711 18,590 3% Street Operations (4600) 664,043 633,394 663,789 909,336 758,977 785,685 (123,652) -14% Pathway Operations (4740) 640,220 653,909 793,371 1,075,480 991,542 909,631 (165,850) -15% Corporation Yard Operations (4300) 146,584 142,482 154,287 225,288 163,599 254,335 29,048 13% Vehicle Operations (4400) 146,230 131,657 112,169 178,926 106,577 168,176 (10,750) -6% Total Public Works$ 6,054,838$ 6,321,546$ 6,915,217$ 8,205,604$ 7,544,078$ 8,859,901$ 654,296 8% Total Expenditures$ 17,889,984$ 19,469,220$ 20,641,886$ 24,213,811$ 23,022,681$ 25,582,351$ 1,368,543 6%

57 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Department Budgets
Department Summary by Category
Expenditures
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
$ Difference
2025-26 Budget
to 2026-27
% Difference
2025-26 Budget
to 2026-27
General Administration
Personnel $ 937,515 $ 1,020,141 $ 1,194,743 $ 1,280,559 $ 1,282,908 $ 1,268,376 $ (12,182) -1% Contractual Services 722,789 305,211 329,718 446,500 586,552 392,556 (53,944) -12% Professional Services 209,501 203,407 249,438 241,856 205,194 247,126 5,270 2% Operations 237,833 205,306 244,159 308,158 219,321 376,422 68,264 22% Capital Outlay Spending - - - - - - - 0%
Miscellaneous Expenditures 4,179 4,179 - 242,000 146,548 254,100 12,100 5% Total General Administration $ 2,111,817 $ 1,738,244 $ 2,018,058 $ 2,519,073 $ 2,440,523 $ 2,538,580 $ 19,508 1% Finance & Administrative Services
Personnel $ 605,762 $ 418,499 $ 685,257 $ 1,499,981 $ 1,207,029 $ 1,216,056 $ (283,925) -19% Contractual Services 325,277 588,760 504,525 366,400 542,954 455,081 88,681 24% Professional Services 159,157 296,383 277,681 124,448 113,981 142,065 17,617 14% Operations 688,074 657,345 741,787 908,504 799,824 942,490 33,986 4% Capital Outlay Spending 29 1,239 - 130,638 1,045 10,000 (120,638) -92% Miscellaneous Expenditures 130,638 130,638 130,638 - - - - 0% Allocations Out 1,374 1,450 1,640 13,468 13,468 13,845 377 3% Total Finance & Administrative
Services $ 1,910,310 $ 2,094,314 $ 2,341,527 $ 3,043,439 $ 2,678,300 $ 2,779,537 $ (263,902) -9% Public Safety
Personnel $ 1,082 $ 1,405 $ 775 $ - $ - $ - $ - 0%
Contractual Services 2,514,498 3,457,694 3,070,401 3,524,766 3,447,329 4,108,740 583,974 17% Operations 15,053 11,351 19,315 13,324 4,150 13,324 - 0% Allocations Out 174,340 169,162 201,303 535,434 535,434 437,917 (97,517) -18% Total Public Safety $ 2,704,974 $ 3,639,613 $ 3,291,794 $ 4,073,524 $ 3,986,913 $ 4,559,981 $ 486,457 12% Community Development
Personnel $ 999,238 $ 1,257,747 $ 1,245,717 $ 1,591,163 $ 1,370,730 $ 1,934,363 $ 343,201 22% Contractual Services 1,074,197 1,275,085 1,268,582 1,271,373 1,615,165 1,245,623 (25,750) -2% Professional Services 9,075 30,059 14,853 13,700 18,572 19,550 5,850 43% Operations 119,301 139,342 180,262 299,001 349,577 367,293 68,292 23% Allocations Out 1,411,266 1,491,693 1,722,779 1,744,569 1,744,569 1,708,642 (35,927) -2% Total Community Development $ 3,613,076 $ 4,193,926 $ 4,432,193 $ 4,919,806 $ 5,098,613 $ 5,275,471 $ 355,666 7% Community Services
Personnel $ 357,185 $ 348,427 $ 331,580 $ 301,881 $ 283,475 $ 350,639 $ 48,760 16% Contractual Services 214,463 227,593 258,757 337,520 280,402 345,700 8,180 2%

58 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Department Budgets
Expenditures
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26 Est. Actual
2026-27
Budget
Proposal
$ Difference
2025-26 Budget
to 2026-27
% Difference
2025-26 Budget
to 2026-27
Professional Services9 244 200 2,700 900 2,500 (200) -7% Operations 269,194 229,814 247,594 294,000 193,211 290,553 (3,447) -1% Allocations Out 654,118 675,497 804,966 516,264 516,265 579,489 63,225 12% Total Community Services$ 1,494,969$ 1,481,576$ 1,643,097$ 1,452,365$ 1,274,253$ 1,568,882$ 116,518 8% Public Works
Personnel$ 1,500,909$ 1,602,504$ 1,791,218$ 1,921,239$ 1,737,527$ 2,122,442$ 201,203 10% Contractual Services 2,544,776 2,744,988 2,967,031 3,859,300 3,539,328 4,209,550 350,250 9% Professional Services 22,233 6,256 7,146 58,000 17,364 146,500 88,500 153% Operations 239,933 226,035 248,791 353,906 238,425 350,965 (2,941) -1% Capital Outlay Spending 5,744 1,367 (100,077) 2,500 776 7,500 5,000 200% Miscellaneous Expenditures 301,451 298,233 339,804---- 0% Allocations Out 1,439,791 1,442,164 1,661,306 2,010,659 2,010,659 2,022,943 12,284 1% Total Public Works$ 6,054,838$ 6,321,546$ 6,915,217$ 8,205,604$ 7,544,078$ 8,859,901$ 654,296 8% Total Expenditures$ 17,889,984$ 19,469,220$ 20,641,886$ 24,213,811$ 23,022,681$ 25,582,351$ 1,368,543 6%

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 59 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

60 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Depart
ment Budgets
Allocations In
Departments
2026-27
Budget
Proposal
2027-28
Budget
Plan
City Attorney 297,035 297,035
City Clerk 251,853 251,853
City Council 230,279 230,279
City Manager 802,607 802,607
Committee & Commissions 267,826 267,826
Corporation Yard Operations 279,541 279,541
Finance & Administrative Services 1,058,926 1,058,926
Insurance 336,341 336,341
Town Benefit 18,036 18,036
Town Center 1,100,018 1,100,018
Vehicle Operations 191,174 191,174
Total 4,833,636 4,833,636
Allocations Out
Departments
2026-27
Budget
Proposal
2027-28
Budget
Plan
Public Safety 419,253 419,253
Animal Control 18,664 18,664
Planning Administration 1,027,130 1,027,130
Planning Commission 60,433 60,433
Code Enforcement Operations 37,777 37,777
Building Operations 583,302 583,302
Community Services Administration 230,563 230,563
Recreation Programs 7,167 7,167
Special Events 111,811 111,811
Parks 104,126 104,126
Westwind Community Barn 125,822 125,822
Engineering 625,424 625,424
Sewer CIP 11,885 11,885
Sewer Operations 437,497 437,497
Storm Drain Operations 191,387 191,387
Street Operations 325,841 325,841
Pathway Operations 442,794 442,794
Community Services Grant 13,845 13,845
NULL 43,610 43,610
Capital Projects 15,303 15,303
Total 4,833,635 4,833,635

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 61 Depart
ment Budgets
FY 2027 City Council Goals
Maintain Quality of Life and
Community Character Promote Public Safety
Increase Effective Service
Delivery & Governance Protect & Maintain Infrastructure General Administration
Continued Housing Element
implementation actions (site
monitoring, compliance updates)
Emergency communication/
notification system
implementation 2028 General Municipal Election Storm Drain Improvements Objective Design Standards
(ODS) adoption and refinements
Home Ignition Zone (HIZ)
program rollout 2026 Election
Matadero Creek Erosion Control
Project
Ongoing community events and
outreach programs
Continued traffic safety
programs (speed feedback
sign program, enforcement
coordination) Updated PRA Software
Summerhill Avenue Pathway –
Phase II
Continued implementation
of items and improvements
outlined during the CDD
Listening Sessions
Continued efforts to increase
emergency preparedness
throughout the Town
Complete Permit Fee
Assessment and Issue
Reimbursements
Magdalena Avenue Pathway
Project
ADU ordinance updates for state
compliance
Town Hall Facility Security
Camera
Upgrade
Improve Deposit Management
for all current projects
Middle Fork to Maple Leaf Court
Pathway
Renewal of major contracts:

Victoria Dye Equestrian and
Los Altos/ Los Altos Hills Little
League TRAKit and eTRAKiT upgrades
Westwind Community Barn
Improvements
Expansion of AI tools (chatbot /
service request platform)
Parks & Recreation Center
Renovation
Los Altos Hills Community Fiber
Installation
Fleet & Equipment Procurement
Public Safety
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
Planning & Building

62 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Depart
ment Budgets
FY 2027 City Council Goals
Maintain Quality of Life and
Community Character Promote Public Safety
Increase Effective Service
Delivery & Governance Protect & Maintain Infrastructure 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
Instituted an inspection
scheduling and notification
software for applicants
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 fulltime consultant (40 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
Complete the Housing Element
Safety Element
Complete Department of
Forestry Community Wildfire
Risk Reduction List TRAKiT & eTRAKiT upgrades
Prepare the HCD Annual
Progress Report and LCI General
Plan Annual Progress Report
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
Ensuring all contractors have the
Town added as additional insured
and contracts updated
Improve Contract Management:

Victoria Dye Equestrian
Agreement and Little League
Agreement
Continue Emergency Prep:
update training
Improve Facility Use Policy
Streamline Facility Rentals

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 63 Depart
ment Budgets
FY 2027 City Council Goals
Maintain Quality of Life and
Community Character Promote Public Safety
Increase Effective Service
Delivery & Governance Protect & Maintain Infrastructure Public Works
Continue mitigation of stinkwort
growth in public right-of-way
(ROW) and pathwa easements.

Complete construction of the
2026 Sanitary Sewer Repair and
Replacement project.

Continue to improve/update
the Public Works Manual for
standardization of process and
procedures and to preserve
institutional knowledge of Town
staff.

Complete 2026 Sanitary Sewer
Rehabilitation CIP.

Continue Sudden Oak Death
mitigation at Byrne Preserve.

Continue Town-wide tree
inspection on highly used
roadways and pathways, park,
and Byrne Preserve
Continue Promoting biking,
walking, and other active means
of transportation through the
Measure B Bike/Pedestrian
Education & Encouragement
Program
Complete the annual State Water
Board’s Storm Water Annual
Reports in time.

Continue Byrne Preserve
restoration and stewardship
program focusing on abatement
of non-native/invasive species
and fire hazard vegetation
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.

Recommend strategies for
utilizing the remaining Rule 20A
credits.

Continue to address work
order requests through Citizen
Engagement portal and iWorQ
work order system.

Continue sewer operation and
maintenance contract with West
Bay Sanitary District.

Continue to replace and update
Town vehicles and equipment
to meet State regulations, Town
policies, and goals for Climate
Action Plan.

Continue maintenance and
monitoring of the offsite
mitigation work at Byrne
Preserve for the Matadero
Creek Restoration and Bank
Stabilization project
Prepare the Townwide Traffic
Safety Plan using SS4A Grant
funds.

Finalize design and start
replacement of the Parks &
Recreation Building with a
prefabricated building.

Continue implementing road
safety and traffic calming
measures.

Develop a long-term plan for
pathway construction.

Construct and rehabilitate
pathways as prioritized and
approved by the Pathways
Committee and City Council
Provide routine pathway
maintenance and work order
service requests throughout the
Town pathways
Construct Magdalena Avenue
Pathway.

64 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan City Council (011-1100)
General Administration
City Council (011-1100)
Mission:

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

Organization & Description:

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

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

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

The Town has five City Council members.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 65 Depart
ment Budgets
City Council (011-1100)
Department Goals and Accomplishments:
2025-26 Accomplishments 2026-27 Goals
Maintain Quality of Life and Community Character
• Continued to promote community building through Town‐wide Events and Activities
• Continued progress and implementation of Housing Element Programs
• Worked with the Housing Element Ad Hoc Committee to amend the certified Housing Element
• Increased public outreach surrounding ongoing Housing Element implementation plans
• Water Efficient Landscape Ordinance Update
• Continued Housing Element implementation actions (site monitoring, compliance updates)
• Objective Design Standards (ODS) adoption and refinements • Ongoing community events and outreach programs
• Continued implementation of items and improvements outlined during the CDD Listening Sessions
• ADU ordinance updates for state compliance
• Renewal of major contracts: Victoria Dye Equestrian and Los Altos/ Los Altos Hills Little League
Town Goal: Promote Public Safety
• Decreased the number of burglaries in Town. Burglary rates are now below our 10-year average
• Updated the maps to reflect new Fire Hazard Severity Zones • Kept the Town safe and prepared for emergencies through an updated EOP and evacuation annex
• Completed the Safety Element of the General Plan
• Engaged with a consultant to prepare an Emergency
Communication Notification Study in consultation with EPRC and City Council
• Emergency communication/notification system implementation • Home Ignition Zone (HIZ) program rollout
• Continued traffic safety programs (speed feedback sign program, enforcement coordination)
• Continued efforts to increase emergency preparedness
throughout the Town
Town Goal: Increase Effective Service Delivery and Governance • Prepared draft policies and processes for Historic Preservation; CDD reviewed and suggested edits needed to integrate into the General Plan and Municipal Code
• Promoted ongoing adoption and incentives for Reach Code implementation
• Conducted a new service fee study and reviewed the fee structure audit
• Implemented electronic voting for public meetings
• Upgraded the Town’s website
• Conducted a Code Enforcement Program evaluation
• Conducted an assessment of expired Town permits
• Conducted a Town survey
• Hold a successful 2026 Election
• Updated PRA Software
• Complete Permit Fee Assessment and Issue Reimbursements • Improve Deposit Management for all current projects
• TRAKit and eTRAKiT upgrades
• Expansion of AI tools (chatbot / service request platform) Town Goal: Promote and Maintain Infrastructure
• Continued planning and development of the Master Pathway Plan (MPP)
• Completed design and began improvements of the Corporation Yard
• Completed installation of the fiber broadband network in priority areas
• Completed the Matadero Creek erosion control project
• Completed general surfacing and signage infrastructure improvements for roadways in Town
• Increased workspace for Town staff to better address
community needs
• Investigated Los Altos Hills’ share in sewer processing and conveyance charges with Los Altos and Palo Alto
• Procured fleet and equipment
•Storm Drain Improvements
•Matadero Creek Erosion Control Project
•Summerhill Avenue Pathway – Phase II
•Magdalena Avenue Pathway Project
•Middle Fork to Maple Leaf Court Pathway
•Corporation Yard Improvements
•Westwind Community Barn Improvements
•Parks & Recreation Center Renovation
•Los Altos Hills Community Fiber Installation
•Undergrounding Utilities – Rule 20A (Phase 2)
•Fleet & Equipment Procurement

66 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan City Council (011-1100)
Budget Summary:

The City Council budget for the FY 2026–27 cycle reflects a more streamlined and fiscally conservative approach, aligning with townwide efforts to manage rising costs—particularly the anticipated increase in the Sheriff’s services agreement. Several project-related expenditures have been reduced or scaled back, including a notable decrease in the KMVT contract for broadcast services, contributing to overall savings. Funding has also been allocated for the ongoing maintenance and support of the City Council Work Plan Tracker, ensuring continued transparency and accessibility for residents.

Key budget components remain focused on core functions, including councilmember travel and training, the annual goal-setting process, and membership dues for regional organizations such as the Santa Clara County Cities Association and the California League of Cities. Expenses for the annual Volunteer Dinner also remain included, covering food, catering, and recognition items.

Overall, the City Council budget decreased by $62,539, or 13% from the FY 2025-26 adopted budget. This decrease reflects both the completion or scaling back of certain one-time initiatives and a broader effort to prioritize essential services while exercising fiscal discipline in response to increasing public safety costs.

Placeholder funding for unforeseen contracts was removed due to budget constraints, primarily driven by increases in the Sheriff’s contract costs. Any significant new contracts that arise during the fiscal year will require separate Council appropriation and approval.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Allocations In $ 209,874 $ 321,796 $ 322,392 $ 226,720 $ 226,720 $ 230,279 $ 230,279 $ 3,559 2% Total Revenues $ 209,874 $ 321,796 $ 322,392 $ 226,720 $ 226,720 $ 230,279 $ 230,279 $ 3,559 2% Expenditures
City Council Expenditures
210,988
321,796 322,392
382,603
472,993
410,454 418,118
Actual Budget
0 250,000
500,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 67 Depart
ment Budgets
City Council (011-1100)
Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Personnel $ 86,201 $ 103,676 $ 103,405 $ 105,293 $ 92,632 $ 134,454 $ 142,118 $ 29,161 28% Contractual Services 37,829 114,671 59,286 150,000 125,337 120,000 120,000 (30,000) -20% Professional Services 24,277 11,617 47,418 25,000 6,200 19,000 19,000 (6,000) -24% Operations 62,681 91,832 112,283 192,700 158,434 137,000 137,000 (55,700) -29% Total Expenditures $ 210,988 $ 321,796 $ 322,392 $ 472,993 $ 382,603 $ 410,454 $ 418,118 $ (62,539) -13%

68 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 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

CORP YARD

OPERATIONS
(for Internal
Service Fund)

PATHWAY

OPERATIONS PLANNING
SEWER
FUND

OPERATIONS
TOTAL 2027
- PROPOSED
Assistant to the City Manager 0.1 0.7 - 0.1 - 0.1 - 1.0 City Manager - 1.0 - - - - - 1.0
Management Analyst - 0.7 - - - - - 1.0
Total Full Time 0.2 2.4 - 0.2 - 0.2 - 3.0

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 69 Depart
ment Budgets
City Manager (011-1200)
Department Goals and Accomplishments:
2025-26 Accomplishments 2026-27 Goals
Town Goal: Maintain Quality of Life and Community Character • Worked on securing an editor and increasing Our Town
Newsletter Publication
• Provided support in outreach for Community Events by posting and promoting Community events on the City Managers Weekly Newseltters
• Continue to provide community outreach through the CIty Manager’s Weekly Newsletter and through social media posts 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
• Successfully installed new security cameras at town facilities • Fire Hazard Severity Zones Update
• Upgrade Town access control panels and security alarms at all Town facilities
• Continue to work with the Sheriff’s department to maintain traffic safety throughout Town
• Upgrade Town access control panels and security alarms at all Town facilities
• Conduct a Sound Study in coordination with the EPRC
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
• Completed a redesign of the Town website
• Launched a new AI Chatbot that can assist with resident and community questions
• Continued Employee Enhancement & Retention Program +
Onboarding new employees.
• Prepare staff to use AI in work through continued training • Continue to find new ways and methods to help
• Continue Employee Enhancement & Retention Program +
Onboarding new employees.

Town Goal: Promote and Maintain Infrastructure
• Completed installation of brand new security cameras at town facilities
• Bring all Town facility security systems under one platform through implementation of upgraded security camera system Budget Summary:

The City Manager’s Office (CMO) budget is primarily driven by personnel costs, including salaries, health, dental, vision, and retirement benefits for Town staff. Merit-based performance increases are initially budgeted under Miscellaneous Expenditures and later reallocated to departmental personnel accounts once awarded.

The CMO budget decreased by $109,339, or 9% from the FY 2025-26 adopted budget. The decrease is primarily due to lower personnel costs resulting from underfilling the Deputy City Manager position with an Assistant to the City Manager position and a decrease in the allocation of the position to the CMO budget.

The budget reflects a continued focus on fiscal prudence, aligning with Townwide efforts to manage rising cost pressures—most notably the anticipated increase in the Sheriff’s contract.

The budget also maintains a placeholder for consultant services to support specialized projects and implementation of City Council Work Plan priorities, as well as funding for facilitation of the Annual City Council Priority Goal Setting process.
.

70 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan City Manager (011-1200)
Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$
Difference
2025-26
Budget
to 2026-
27 %
Difference
2025-26
Budget
to 2026-
27 Revenues
Allocations In $ 450,298 $ 606,920 $ 817,920 $ 798,050 $ 798,050 $ 802,607 $ 802,607 $ 4,557 1% Total Revenues $ 450,298 $ 606,920 $ 817,920 $ 798,050 $ 798,050 $ 802,607 $ 802,607 $ 4,557 1% Expenditures
Personnel $ 436,114 $ 469,759 $ 688,932 $ 746,581 $ 750,576 $ 636,586 $ 660,797 $ (109,995) -15% Contractual Services 179,760 75,253 68,143 206,500 122,250 192,556 192,556 (13,944) -7% Professional Services 512 905 574 1,200 400 1,200 1,200 - 0% Operations 25,110 59,802 75,523 78,800 41,590 81,300 81,300 2,500 3% Miscellaneous
Expenditures - - - 242,000 146,548 254,100 266,805 12,100 5% Total Expenditures $ 641,497 $ 605,720 $ 833,172 $ 1,275,081 $ 1,061,364 $ 1,165,742 $ 1,202,657 $ (109,339) -9% City Manager Expenditures
641,497 605,720
833,172
1,061,364
1,275,081 1,165,742 1,202,657
Actual Budget
0 500,000
1,000,000
1,500,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 71 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:
2025-26 Accomplishments 2026-27 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 reflects a structural shift rather than a true reduction in overall legal spending. While the core City Attorney program shows a decrease from prior levels, this change is primarily due to the reallocation of legal costs to the departments where the work occurs.

Beginning in FY 2025–26 and continuing into FY 2026–27, legal expenses associated with Community Development, Public Works, and Housing Element implementation have been moved out of the centralized City Attorney budget and into those respective departmental budgets. As a result, the remaining City Attorney budget is more narrowly focused on general legal services, litigation, settlements, and non-department-specific matters.

72 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan City Attorney (011-1500)
The City Attorney budget increased by $5,270, or 2% from the FY 2025-26 adopted budget. This modest increase is primarily attributable to higher anticipated costs for general legal services and ongoing contractual obligations.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$
Difference
2025-26
Budget
to 2026-
27 %
Difference
2025-26
Budget
to 2026-
27 Revenues
Allocations In $ 638,914 $ 277,044 $ 357,465 $ 289,060 $ 289,060 $ 297,035 $ 297,035 $ 7,975 3% Total Revenues $ 638,914 $ 277,044 $ 357,465 $ 289,060 $ 289,060 $ 297,035 $ 297,035 $ 7,975 3% Expenditures
Contractual Services $ 505,200 $ 115,286 $ 195,620 $ 90,000 $ 338,965 $ 80,000 $ 80,000 $ (10,000) -11% Professional Services 155,911 161,758 184,757 169,656 174,432 184,926 184,926 15,270 9% Total Expenditures $ 661,111 $ 277,044 $ 380,377 $ 259,656 $ 513,397 $ 264,926 $ 264,926 $ 5,270 2% City Attorney Expenditures
661,111
277,044
380,377
513,397
259,656 264,926 264,926
Actual Budget
0 250,000
500,000
750,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 73 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

74 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan City Clerk (011-1300)
Program Summary:

Activity
Measurement
Method 2023/24 2024/25 2025/26
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

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 75 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 2027 -

PROPOSED
Administrative Clerk / Technician 0.5 - 0.4 - 1.0
City Clerk 0.8 0.2 - - 1.0
Total Full Time 1.2 0.2 0.4 - 2.0

76 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan City Clerk (011-1300)
Family Game Night
Department Goals and Accomplishments:
2025-26 Accomplishments 2026-27 Goals
Town Goal: Maintain Quality of Life & Community Character • Successful FY2025-26 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 2025 Volunteer Dinner
• Assisted with the assembly of the City Manager’s Weekly Report • Met with Committee Chairs to standardize meeting and
committee norms
• Prepared and Posted Recaps after regular City Council meetings • Assisted with the quarterly newsletter
• Improved website
• Host the volunteer dinner
• Hold an annual roundtable with committees and Mayor
• Organize the Council Reorganization Meeting
Town Goal: Promote and Maintain Infrastructure
• Provided 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

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 77 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 $140,081, or 48% from the FY 2025-26 adopted budget due to increases in Operations. The increase in Operations is primarily due to the FY 2026-27 election, costs associated with the design and printing of the Our Town newsletter, and the addition of Common Sense PRA software. The budget also supports expanded efforts in committee management, public outreach, and records digitization to improve transparency and operational efficiency.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Allocations In $ 230,163 $ 271,101 $ 280,158 $ 315,170 $ 315,170 $ 251,853 $ 251,853 $ (63,317) -20% Total Revenues $ 230,163 $ 271,101 $ 280,158 $ 315,170 $ 315,170 $ 251,853 $ 251,853 $ (63,317) -20% Expenditures
Personnel $ 195,316 $ 227,465 $ 212,283 $ 236,981 $ 253,162 $ 259,598 $ 267,418 $ 22,618 10% Contractual Services - - 6,669 - - - - - 0%
Professional Services 17,126 21,229 12,281 25,000 18,692 21,000 21,000 (4,000) -16% Operations 17,721 22,408 48,926 27,104 13,690 148,568 109,068 121,464 448% Total Expenditures $ 230,163 $ 271,101 $ 280,158 $ 289,085 $ 285,544 $ 429,166 $ 397,486 $ 140,082 48% City Clerk Expenditures
230,163 271,101 280,158 289,085 285,544
429,166 397,486
Actual Budget
0 250,000
500,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

78 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 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 12 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 1.17. Additionally, each committee has Council liaison who provide Council oversight and staff support to complete research and analysis as directed by Council.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 79 Depart
ment Budgets
Committees and Commissions (011-1700)
Barn Lighting Event
Department Goals and Accomplishments:
2025-26 Accomplishments 2026-27 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

80 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Committees and Commissions (011-1700)
Budget Summary:

Committee & Commissions is a General Administrative department. The Committee & Commissions budget increased by $46,034, or 21% from the FY 2025-26 budget due to increases in personnel costs including COLA and merit increases.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Charges for Services $ 2,358 $ 3,832 $ 7,338 $ - $ - $ - $ - $ - 0% Allocations In 336,521 258,403 201,818 260,852 260,852 267,826 267,826 6,974 3% Total Revenues $ 338,879 $ 262,235 $ 209,156 $ 260,852 $ 260,852 $ 267,826 $ 267,826 $ 6,974 3% Expenditures
Personnel $ 219,884 $ 219,241 $ 190,123 $ 191,704 $ 186,538 $ 237,738 $ 244,934 $ 46,034 24% Professional Services 11,674 7,898 4,408 21,000 5,469 21,000 21,000 - 0% Operations 107,321 31,265 7,427 9,554 5,607 9,554 9,554 - 0% Total Expenditures $ 338,879 $ 258,403 $ 201,958 $ 222,258 $ 197,614 $ 268,292 $ 275,488 $ 46,034 21% Committees and Commissions Expenditures
338,879
258,403
201,958 197,614 222,258 268,292 275,488
Actual Budget
0 200,000
400,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 81 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 5 full-time equivalent positions, including the Administrative Services Director/Finance Director, two Senior Accountants, the Accounting Technician, and a 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

82 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 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 2023/24 2024/25 2025/26

1. Maintain/Improve Operating Efficiency
a. Timely month-end close
Average number of
days 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 4.0/4.0 5.0/5.0
b. Number of invoices processed 1,712 2,773
c. Number of payroll check issued 962 1001 1,112
d. Number of journal entries 330 360

4. Recruitment Hire / Vacancy 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.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 83 Depart
ment Budgets
Finance & Administrative Services (011-1400)
Department Staffing

FINANCE &

ADMINISTRATIVE

SERVICES
TOTAL 2027 -

PROPOSED
Accounting Technician 1.0 1.0
Finance Director 1.0 1.0
Senior Accountant 2.0 2.0
Total Full Time 4.0 4.0
Department Goals and Accomplishments:
2025-26 Accomplishments 2026-27 Goals
Town Goal: Maintain Quality of Life & Community Character • Kept the department operational through significant staff turnover and hired 1 FTE Management Analyst
• 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 • Implemented travel and purchasing policies for goods, services, and public works projects
• Completed a cost of service study as basis for evaluation of new fees and updates to existing fee schedule
• Provided mid-year update to the Finance and Investment Committee
• Implemented Edwin software to automate bank reconciliations • Prepared long-term fiscal projection for budget planning • Update policies and procedures and provide cross training for succession planning
• Adopt second 2-year budget and update 5-year CIP
• Complete impact fee assessment to assess whether new or revised fees are warranted
• Create financial policy for uncollectable accounts receivables, stale dated checks or escheatment process
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

84 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 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. In FY 2025-26, the Department implemented Edwin to automate bank/cash reconciliations and financial reporting.

The Finance and Administrative Service budget increased by $83,336, or 7% from the FY 2025-26 adopted budget.

The change reflects targeted investments to strengthen internal operations, financial reporting, and service delivery, including the addition of ADP payroll software and implementation of an automated bank and cash reconciliation system ($11,000). These investments are partially offset by a reduction in HR consulting costs, as HR functions shift in-house.

The automated reconciliation system will improve the accuracy and timeliness of the Town’s financial reporting.

In FY 2025-26, the department added 1 FTE Management Analyst. This role supports 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 in-house, 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
847,596 970,033 1,028,924 1,128,600 1,134,006 1,211,936 1,216,057 Actual Budget
0 500,000
1,000,000
1,500,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 85 Depart
ment Budgets
Finance & Administrative Services (011-1400)
Touch a Truck Event Fun
Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Allocations In $ 847,596 $ 936,339 $ 1,028,247 $ 1,166,519 $ 1,166,519 $ 1,058,926 $ 1,058,926 $ (107,593) -9% Total Revenues $ 847,596 $ 936,339 $ 1,028,247 $ 1,166,519 $ 1,166,519 $ 1,058,926 $ 1,058,926 $ (107,593) -9% Expenditures
Personnel $ 673,921 $ 421,781 $ 680,942 $ 888,156 $ 910,643 $ 945,989 $ 951,814 $ 57,834 7% Contractual Services 75,119 359,732 232,330 58,400 75,458 82,800 100,357 24,400 42% Professional Services 58,176 149,919 65,033 57,448 50,040 59,295 61,191 1,847 3% Operations 40,380 38,601 50,620 124,596 97,865 123,852 102,695 (744) -1% Total Expenditures $ 847,596 $ 970,033 $ 1,028,924 $ 1,128,600 $ 1,134,006 $ 1,211,936 $ 1,216,057 $ 83,337 7%

86 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 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 2023/24 2024/25 2025/26

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

2. Risk Management & Mitigation
a. Wellness Grant (W/C)
• Grant Program $12,000 $15,000 $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
Playground
Safety
Heavy
Machine Ops
Heavy
Machine Ops
d. Mandatory Training
• OSHA Training Yes Yes Yes
• Harassment Training (every 2 n/a Yes Yes
e. Ethics Training (All Employees, Council, Planning Commission) Yes Yes Yes

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 87 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:
2025-26 Accomplishments 2026-27 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 $16,661, or 4%, from the FY 2025-26 adopted budget. 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.

88 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Insurance (011-1510)
Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Miscellaneous
Revenues $ 4,172 $ 21,667 $ - $ - $ - $ - $ - $ - 0%
Allocations In 249,114 328,190 383,545 351,159 351,159 336,341 336,341 (14,818) -4% Total Revenues $ 253,286 $ 349,858 $ 383,545 $ 351,159 $ 351,159 $ 336,341 $ 336,341 $ (14,818) -4% Expenditures
Operations $ 253,286 $ 344,334 $ 383,545 $ 433,924 $ 417,668 $ 450,585 $ 473,114 $ 16,661 4% Total Expenditures $ 253,286 $ 344,334 $ 383,545 $ 433,924 $ 417,668 $ 450,585 $ 473,114 $ 16,661 4% General Liability Insurance Expenditures
253,286
344,334 383,545 433,924 417,668 450,585 473,114
Actual Budget
0 250,000
500,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 89 Depart
ment Budgets
Community Services Grant (011-1600)
Mission:

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

Description:

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

Program Summary & Major Services:

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

Department Staffing:

There is minimum in-house support, primarily from Finance and City Council. 2025-26 Accomplishments:

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

FY 2026-28 Objectives:

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

Budget Summary:

The Community Services Grant program’s budget is almost entirely dedicated to funding community grants, with a very small amount attributable to covering Town-wide overhead charges. The budget for grants in fiscal years 2026-27 and 2027-28 is $31,000 each year.
2020-21
Actual
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
Friends of Deer Hollow Farms 5,000 5,000 6,000 5,000 5,000 5,000 Hidden Villa 10,000 100,000 10,000 10,000 10,000 10,000 Los Altos Chamber of Commerce 5,000 15,000 5,000 5,000 5,000 5,000 Community Services Agency (CSA) 5,000 - 25,000 25,000 10,000 10,000 Rotary Club of Los Altos (Art in the Park) - - - - - 1,000 Counseling and Support Services for Youth
(CASSY) - - - - 10,000 -
Community Health Awareness Council
(CHAC) 16,550 120,200 34,000 34,040 - -
North County Library Authority (NCLA) 11,339 6,308 - - - - Los Altos Mountain View Community
Foundation (LAMVCF) 5,000 - 5,000 5,000 - -
Total 57,889 246,508 85,000 84,040 40,000 31,000

90 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Community Services Grant (011-1600)
Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Expenditures
Personnel $ - $ - $ - $ 37 $ - $ - $ - $ (37) 0%
Operations 99,535 83,234 40,000 31,000 31,000 31,000 31,000 - 0% Allocations Out 1,374 1,450 1,640 13,468 13,468 13,845 13,845 377 3% Total Expenditures $ 100,910 $ 84,684 $ 41,640 $ 44,505 $ 44,468 $ 44,845 $ 44,845 $ 340 1% Community Services Grant Expenditures
100,910 84,684
41,640 44,505 44,468 44,845 44,845
Actual Budget
0 50,000
100,000
150,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 91 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 decreased by $37,743, or 4%, compared to the FY 2025-26 adopted budget. This increase is a combination of increased Personnel costs attributable to this program.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Miscellaneous
Revenues $ (13,239) $ 10,942 $ 11,544 $ - $ - $ - $ - $ - 0% Allocations In 750,820 674,828 875,909 1,009,914 1,009,914 1,100,018 1,100,018 90,104 9% Total Revenues $ 737,581 $ 685,770 $ 887,453 $ 1,009,914 $ 1,009,914 $ 1,100,018 $ 1,100,018 $ 90,104 9% Expenditures
Personnel $ 127,372 $ 119,420 $ 145,681 $ 185,292 $ 153,380 $ 170,067 $ 175,708 $ (15,226) -8% Contractual Services 250,158 229,028 272,196 308,000 467,496 372,281 384,000 64,281 21% Professional Services 100,981 146,463 212,648 67,000 63,941 82,770 84,842 15,770 24% Operations 294,872 191,177 267,622 318,984 253,291 337,053 338,551 18,069 6% Capital Outlay
Spending 29 1,239 - 130,638 1,045 10,000 10,000 (120,638) -92% Miscellaneous
Expenditures 130,638 130,638 130,638 - - - - - 0%
Total Expenditures $ 904,050 $ 817,965 $ 1,028,784 $ 1,009,914 $ 939,152 $ 972,171 $ 993,101 $ (37,744) -4% Town Center Expenditures
904,050 817,965
1,028,784 1,009,914 939,152 972,171 993,101
Actual Budget
0 500,000
1,000,000
1,500,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

92 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 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 2023/24 2024/25 2025/26

1. Santa Clara County Sheriff
a. Average response time
Priority 1 calls Actual / Target 10.47/9 12.16/9 7.92/9 Priority 2 calls Actual / Target 8.49/14 7.65/14 9.01/14 Priority 3 calls Actual / Target 8.49/25 5.63/25 8.21/25 b. Crime related activities
Number of crime reports
(Public Safety Report, Selected Crimes) 94 137 75
Category with most calls
Residential
Burglary
Residential
Burglary
Residential
Burglary
c. Traffic related activities
Number of events 241 158 121
Category with most calls Other Citation Other Citation Other Citation d. Community Outreach/Education Yes Yes Yes

2. Palo Alto Animal Services 348 250

3. Emergency Preparedness meeting – To update emergency policy, case studies, etc. 24 22
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.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 93 Depart
ment Budgets
Public Safety (011-2100)
Department Goals and Accomplishments:
2025-26 Accomplishments 2026-27 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 $489,248, or 13% from the FY 2025-26 adopted budget. This increase is primarily driven by rising contract costs with the Santa Clara County Sheriff’s Office due to a new agreement contributing to a 25% increase in the rate for base law enforcement services, raising the cost to $3,379,740. To help offset these increases, the budget for additional Sheriff overtime hours has been eliminated.

Costs include:
> Private security (PalAmerican): $550,000
> Neighborhood Watch program: $10,000
> Speed camera cloud services (placeholder): $1,000
The Town has also terminated its agreement for the Automated License Plate Reader (ALPR) system, removing the previously budgeted $93,000 expense from the Public Safety program.

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.

94 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Public Safety (011-2100)
Hoppin’ Hounds Event at the Westwind Community Barn
Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Expenditures
Personnel $ - $ 1,954 $ - $ - $ - $ - $ - $ - 0%
Contractual Services 2,118,864 3,394,770 2,969,377 3,367,766 3,343,398 3,946,740 4,115,727 578,974 17% Operations - 11,351 19,315 13,324 4,150 13,324 13,324 - 0% Allocations Out 163,694 159,825 188,649 508,979 508,979 419,253 419,253 (89,726) -18% Total Expenditures $ 2,282,559 $ 3,567,900 $ 3,177,340 $ 3,890,069 $ 3,856,527 $ 4,379,317 $ 4,548,304 $ 489,248 13% Public Safety Expenditures
2,282,559
3,567,900 3,177,340
3,890,069 3,856,527 4,379,317 4,548,304
Actual Budget
0 2,500,000
5,000,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 95 Depart
ment Budgets
Animal Control (011-2150)
Budget Summary:

Animal Control is a division of Public Safety. The Animal Control budget decreased by $2,791, or 2% from the FY 2025-26 adopted budget. The decrease is due to a decrease in allocations. Contractual Services increased due to increases in the contract with Pets in Need, which provides animal control services through the City of Palo Alto, including field response, shelter services, and administrative support.

Under the current agreement, which has been extended through 2029, the Town continues to receive comprehensive animal control services, including access to a Hearing Officer for more complex animal control cases. The increase in cost is consistent with rising service delivery expenses and the continued demand for animal control services.

Other expenses in this program are primarily related to overhead allocations.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Expenditures
Contractual Services $ 50,889 $ 53,715 $ 100,905 $ 157,000 $ 103,931 $ 162,000 $ 167,000 $ 5,000 3% Allocations Out 8,839 9,328 10,546 26,455 26,455 18,664 18,664 (7,791) -29% Total Expenditures $ 59,728 $ 63,043 $ 111,450 $ 183,455 $ 130,386 $ 180,664 $ 185,664 $ (2,791) -2% Animal Control Expenditures
59,728 59,728 63,043 63,043
11111,450 1,450 130,386 130,386
183,455 183,455 180,664 180,664 185,664 185,664
Actual Budget
0 100,000
200,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

96 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 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 2025-26 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 2026-27 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
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Expenditures
Personnel $ 1,082 $ (548) $ 775 $ - $ - $ - $ - $ - 0%
Contractual Services 344,745 9,209 120 - - - - - 0%
Operations 15,053 - - - - - - - 0%
Allocations Out 1,807 10 2,108 - - - - - 0%
Total Expenditures $ 362,687 $ 8,671 $ 3,004 $ - $ - $ - $ - $ - 0% Citizens Public Safety Program Expenditures
362,687 362,687
8,671 8,671 3,004 3,004
Actual Budget
0 200,000
400,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 97 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 Administration, Building Operations, Code Enforcement, and Planning Commission 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 (0.5 FTE) Community Development Director (0.5 FTE) Principal Planner (1 FTE) Building Technician/Inspector (2 FTE) Senior Planner (1 FTE) Management Analyst (0.5 FTE)
Associate Planner (1 FTE) Building Inspector (onsite contractor) Assistant Planner (1 FTE) Plans Examiners (off-site contractor)

98 Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Planning Administration (011-3100)
Program Summary & Major Services:

The Community Development Department is composed of four divisions that work collaboratively to guide thoughtful growth, uphold community standards, and preserve the unique character that makes Los Altos Hills one of the most desirable communities in the region. Together, these divisions ensure compliance with State mandates while maintaining the Town’s semi-rural charm, environmental stewardship, and high quality of life.

The Planning Division focuses on both long-range planning and current development review. Long-range planning includes preparation, maintenance, and implementation of the Town’s General Plan and Municipal Code to guide future growth and community priorities. The Division also administers the Town’s Zoning and Site Development Codes by reviewing and processing development applications, use permits, and environmental reviews in compliance with CEQA.

The Building Division oversees the Town’s built environment, ensuring that construction and development activities align with approved land use policies and meet all applicable building codes and life-safety standards. This work is carried out through plan review, permitting, and inspection services that support safe and high-quality development.

The Sustainability program integrates planning and building efforts to advance environmental stewardship, energy efficiency, and climate-conscious practices. These initiatives help ensure that growth and operations align with sustainability goals while preserving the qualities that define Los Altos Hills.

Finally, Code Enforcement supports compliance with Municipal Code requirements, working collaboratively with residents, property owners, and developers to maintain community standards and ensure a safe, orderly, and attractive environment.

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 and permit counter services • Records retention and file management
• Planning Commission and City Council support on development, land use, and Municipal Code amendments
• Intergovernmental coordination (MTC/ABAG, LAFCO, SCVWD, BAAQMD, SCCAPO, BAHFA) • Grant applications and administration
• Emergency planning (EOC planning function)
• Committee liaison support (Environmental Design and Protection, Environmental Initiatives, History, Open Space and Pathways)
• State housing and land use legislation monitoring
• User Fee Study development and implementation

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 99 Depart
ment Budgets
Planning Administration (011-3100)
Program Summary:

Activity
Measurement
Method 2023/24 2024/25 2025-26

1. Planning Applications April thru March
a. Applications Submitted 341 315 391
b. Applications Approved 155 148 177

2. Building Permits April thru March
a. Permits Issued 698 551 588
b. Permits Finaled 552 450 379
c. Total Valuation $71,296,864.56 $69,253,648.24 $58,205,530.62 d. Inspections Completed 2,601 2,807 2,682

3. Code Enforcement April thru March
a. Cases Opened 109 117 99
b. Cases Resolved 100 103 65
View from off-road Pathway to La Paloma Road

100
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Planning Administration (011-3100)
Car show at the Picnic
Department Staffing
Community Development Department staffing is distributed to various divisions and programs as follows.

BUILDING

OPERATIONS CODE COMMITTEES FINANCE & PLANNING

PLANNING

COMMISSION
TOTAL 2027 -

PROPOSED
Assistant Planner - - - - 1.0 - 1.0
Associate Planner - - 0.1 - 0.8 0.1 1.0
Building / Planning Technician 2.0 - - - - - 2.0
Code Enforcement Officer - 1.0 - - - - 1.0
Community Dev. Director 0.2 0.1 - - 0.6 - 1.0
Management Analyst 0.8 - - 0.5 0.8 - 2.0
Planning Permit Technician - - - - 1.0 - 1.0
Principal Planner - - - - 1.0 - 1.0
Senior Planner 0.1 0.1 0.1 - 0.7 0.1 1.0
Total Full Time 3.0 1.2 0.2 0.5 5.8 0.3 11.0

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 101 Depart
ment Budgets
Planning Administration (011-3100)
Department Goals and Accomplishments:
2025-26 Accomplishments 2026-27 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
• Codified Reasonable Accommodations Policy
• Engaged with Planning Collaborative and consultant to adopt an inclusionary housing policy guidance and in-lieu fees for new construction
• Simplified city permitting processes and provided rebate for electrification conversions
• Reach Code Update for remodel projects
• 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 full-time consultant (40 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 full-time consultant (40 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
• Complete Department of Forestry Community Wildfire Risk Reduction List
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 • Conducted a CDD Listening Informational Session to garner feedback and process improvements
• Completed duplicative permit fee assessment and issued $1M in refunds for residents and contractors
• Improved deposit management for current projects
• Completed User Fee Study and Cost Allocation Plan to evaluate permit fees starting FY26-27
• Update Town’s GIS Base Map to include recorded maps and other easements
• Instituted an inspection scheduling and notification software for applicants
• 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
• Complete the Housing Element Safety Element
• TRAKiT & eTRAKiT upgrades
• Prepare the HCD Annual Progress Report and LCI General Plan Annual Progress Report
Budget Summary:

The Planning Division continued to experience a shift in workload during FY 2025-26, with a substantial focus on Housing Element implementation, long-range planning efforts as required by state law, and legal challenges to the Town’s policies and development processes. As planning applications have increased due to state legislation, significant staff time and consultant resources have also been dedicated to housing element amendments, zoning code updates, rezoning efforts, and general plan updates.

102
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Planning Administration (011-3100)
Revenue projections as of March 31, 2026, were at 69% of budget, while expenditures were at 55%, resulting in a widening funding gap for long-range planning efforts, which are subsidized by the General Fund. Current planning services — such as site development and zoning permits — remain the primary focus of cost recovery efforts, with a cost recovery target set at 90-100%. However, overall cost recovery in FY 2025-26 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 that was just completed and presented to Council, which aim to adjust user fees to better reflect the true cost of service delivery and improve cost recovery performance.

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 2025-26 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 FY 2026-27 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 — was increased to as close to 100%, based on the most recent fee study. However, 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 User Fee Study highlighted that the Planning Administration is currently only recovering 27% of its costs, leading to a million-dollar shortfall in the budget.

The FY 2026-27 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 that were recently approved. 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. Once the Fee schedule has had some time to filter through, the department will review the position over the next couple of years to review whether the new fee structure has helped address the cost recovery issues. Additionally, Housing Element expenses previously captured within the CIP budget have been transitioned into the operating budget to better align with the Town’s fiscal organization and accounting structure. To help manage current and anticipated work activities, staff is proposing the addition of a Planning Manager position and is moving forward with filling the currently vacant Assistant Planner position.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 103 Depart
ment Budgets
Planning Administration (011-3100)
Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Charges for Services $ 653,932 $ 627,950 $ 676,801 $ 633,674 $ 608,303 $ 1,629,449 $ 1,661,185 $ 995,775 157% Total Revenues $ 653,932 $ 627,950 $ 676,801 $ 633,674 $ 608,303 $ 1,629,449 $ 1,661,185 $ 995,775 157% Expenditures
Personnel $ 592,784 $ 626,482 $ 642,587 $ 940,479 $ 718,702 $ 1,104,455 $ 1,138,021 $ 163,976 17% Contractual Services 307,895 363,253 528,057 281,000 260,436 554,500 552,750 273,500 97% Professional Services 6,143 5,128 4,443 12,500 17,672 19,050 19,812 6,550 52% Operations 41,089 53,400 55,267 48,274 48,658 98,078 89,603 49,804 103% Allocations Out 898,201 941,648 1,087,847 1,000,431 1,000,431 1,027,130 1,027,130 26,699 3% Total Expenditures $ 1,846,112 $ 1,989,910 $ 2,318,200 $ 2,282,684 $ 2,045,899 $ 2,803,213 $ 2,827,317 $ 520,529 23% Planning Administration Expenditures
1,846,112 1,989,910 2,318,200 2,045,899 2,282,684
2,803,213 2,827,317
Actual Budget
0 2,000,000
4,000,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

104
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 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 a minor decrease year to year which is possible due to converting the consultant code enforcement officer position to a staff position. However, Planning Commission expenditures increased during FY 2025-26 due to rising personnel costs and insurance as well as public hearings related to the Housing Element implementation.

In FY 2026-27, Planning Commission activity is projected to stabilize slightly, although significant meetings will continue for the Housing Element program. 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 decreased by $8,595, or 6% from the FY 2025-26 adopted budget due to decreases in personnel, operations, and allocations.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$
Difference
2025-26
Budget
to 2026-
27 %
Difference
2025-26
Budget
to 2026-
27 Expenditures
Personnel $ 69,366 $ 119,919 $ 67,293 $ 69,135 $ 63,408 $ 64,441 $ 64,969 $ (4,693) -7% Professional Services 1,531 690 510 1,200 300 500 - (700) -58% Operations 12,965 13,200 11,112 13,193 7,361 11,618 12,093 (1,575) -12% Allocations Out 8,577 9,052 10,234 62,059 62,059 60,433 60,433 (1,626) -3% Total Expenditures $ 92,440 $ 142,861 $ 89,149 $ 145,587 $ 133,129 $ 136,992 $ 137,495 $ (8,594) -6% Planning Commission Expenditures
92,440
142,861
89,149
133,129 145,587 136,992 137,495
Actual Budget
0 100,000
200,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 105 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 full-time code enforcement officer, whose hours were expanded during FY 2025-26 from four days per week to five days per week (40 hours weekly) to meet increased community needs. As well as the increased coverage, the contractual costs were increased from $115 to $170 per hour from the consultant. This has led the Department to request an in-house code enforcement officer to mitigate the huge increases. 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.

The Code Enforcement Operations budget increased by $28,373, or 10% from the FY 2025-26 adopted budget due to contractual rate increases and dedicated Town attorney services. Code enforcement activity is anticipated to increase as more hours are available for case management. Therefore, the projected FY 2026-27 budget is based on the employment of an in-house code enforcement office and part-time attorney services retained at an average rate of 10 hours per week.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Expenditures
Personnel $ 21,649 $ 34,809 $ 33,071 $ 39,360 $ 134,327 $ 223,142 $ 228,875 $ 183,781 467% Contractual Services 126,940 91,915 105,401 208,000 201,696 62,000 63,860 (146,000) -70% Operations - 164 25 36 34 36 36 - 0%
Allocations Out 25,181 25,498 28,828 47,186 47,186 37,777 37,777 (9,409) -20% Total Expenditures $ 173,771 $ 152,386 $ 167,325 $ 294,582 $ 383,243 $ 322,955 $ 330,548 $ 28,372 10% Code Enforcement Expenditures
173,771 152,386 167,325
383,243
294,582 322,955 330,548
Actual Budget
0 200,000
400,000
600,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

106
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Building Operations (011-3200)
Budget Summary:

The Building Division budget for FY 2026-27 was developed using Cost-of-Service Study and Fee study finalized in FY 2025-26. Each of these studies will ensure the collection of 90-100% of existing and new expenses and will also help other divisions meet their goals as these same costs will be included in the studies. Cost recovery goals are outlined in detail in the following section.

Regarding the FY 2025-26 operations and their impact on the FY 2026-27 budget, the Town has again prioritized customer service by increasing accountability and transparency within various aspects of its operation, with a majority of the efforts focusing on staffing and modifications to the Town’s permitting system. While the continued use of consultants does come with a higher hourly cost burden than if the Town were to fill those positions with FTEs, the Building Division would lose its flexibility to adjust to economic trends that could ultimately have a greater negative impact on ongoing expenses if the Town were to hire FTEs to fill those positions when revenues have been reduced. This is something we are already seeing in the Community Development Department, affecting the Planning Division as new state laws are shifting the focus of planning work. The use of consultants allows the Town to adjust consultant support levels to circumvent those negative economic trends outside of the Town’s control. Currently, the Town relies on consultant support for plan review and inspection services. Permit system modifications have been underway since the beginning of 2024, and many of the one-time costs seen in the FY 2026-27 budget are related to costs associated with expanding the permitting system’s capabilities. One such system is a new permit inspection scheduling software and notification relay system. Permit system modifications to date have helped define additional modifications to the permitting system that, in turn, increase service levels.

As the permitting system’s capabilities are expanded and more services are offered online, we may be able to reduce the Building Division’s dependence on consultant support.

Budget Summary:

The Building Division experienced stable permit activity throughout FY 2025-26, with annual permit volumes increasing 6.7% from the previous FY. However, as of March 31, 2026, actual revenues were lower than projected due to lower project valuations and construction costs exceeding ICC valuation averages. Despite this, overall revenues are projected to increase in FY 2026-27 compared to the prior year’s budget, as the new User Fee Study and introduction of more accurate fees will bring us closer to our cost recovery efforts.

During FY 2025-26, 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 introduction of more tools in the upcoming FY will help address inspection scheduling, notification relaying and AI tools will dramatically improve applicants with detailed notes and guidance in their permit applications.

The FY 2026-27 budget maintains this approach, with additional investments in permitting technology and administrative capacity to further improve service levels. The building budget decreased by $184,641, or 8% from the FY 2025-26 adopted budget due to decreases in Contractual Services and Personnel costs. Operational costs are projected to rise with the increased rates of licenses and conferencing for staff and computer software that are up for renewal.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 107 Depart
ment Budgets
Building Operations (011-3200)
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 that was recently completed. These updates are intended to stabilize future revenue collections and help the division maintain its long-term financial sustainability.

Budget Item Comparison
Budget Items
FY2025-26
Budget
FY2025-26
Est. Actual
FY2026-27
Budget
FY2027-28
Budget
Administrative, Plan Review, and Inspection Services $ 415,000 $ 850,000 $ 975,000 $ 1,000,000 One-Time Costs for Studies and Software N/A N/A $ 195,000 $ 5,000 Miscellaneous Projects (e.g., File Scanning, Climate Action Plan Support) $ 100,000 N/A $ 297,000 $ 252,000
New Annual Costs for Town Center N/A N/A $ 97,000 $ 97,000 New Software Subscriptions N/A N/A $ 106,000 $ 106,000
Salary Savings from Elimination of One FTE N/A N/A $ (125,000) $ (125,000) Total $ 515,000 * $ 850,000 $ 1,545,000 * $ 1,335,000

108
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Building Operations (011-3200)
Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Licenses and
Permits $ 1,364,594 $ 1,835,241 $ 1,177,097 $ 2,012,774 $ 1,314,470 $ 1,635,490 $ 1,684,555 $ (377,284) -19% Charges for Services 5,265 10,330 5,410 149,752 21,375 288,673 297,332 138,921 93% Miscellaneous
Revenues 18,588 37,720 109,048 - 10,106 - - - 0%
Total Revenues $ 1,388,447 $ 1,883,291 $ 1,291,555 $ 2,162,526 $ 1,345,951 $ 1,924,163 $ 1,981,887 $ (238,363) -11% Expenditures
Personnel $ 315,439 $ 476,537 $ 502,766 $ 542,189 $ 454,292 $ 542,325 $ 559,296 $ 137 0% Contractual Services 639,362 819,917 635,124 782,373 1,153,034 629,123 621,313 (153,250) -20% Professional
Services 1,400 24,241 9,900 - 600 - - - 0%
Operations 65,247 72,579 113,858 237,498 293,524 257,561 267,863 20,063 8% Allocations Out 479,307 515,496 595,870 634,893 634,893 583,302 583,302 (51,591) -8% Total Expenditures $ 1,500,754 $ 1,908,769 $ 1,857,519 $ 2,196,953 $ 2,536,342 $ 2,012,311 $ 2,031,774 $ (184,641) -8% Cost Recovery:

The Building Division’s cost recovery target remains between 90% and 100%, consistent with prior financial policies and state law requirements for fee-supported services. As reflected in the financial tables and chart, revenues collected in FY 2025-26 covered a substantial portion of operating costs but fell short of cost recovery, primarily due to fees being less than necessary to achieve targeted revenues Given that the purpose of cost recovery is to collect sufficient fees to offset the staff and consultant costs associated with the full lifecycle of a project, it is important to recognize the timing differences between fee collection and service delivery. The town’s building permit workflow is outlined below.

Plan check fees are collected at the time of initial permit application submission, while administrative, inspection, impact, and in-lieu fees are collected at permit issuance or permit closeout. However, the services funded by these Building Inspection Expenditures
1,500,754
1,908,769 1,857,519
2,536,342 2,196,953 2,012,311 2,031,774
Actual Budget
0 1,000,000
2,000,000
3,000,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 109 Depart
ment Budgets
Building Operations (011-3200)
fees — particularly inspections and construction monitoring — often extend across multiple fiscal years, as many projects in Los Altos Hills, including new home construction and major remodels, typically take two to three years or more to complete. Recent trends, particularly following the COVID-19 pandemic, have led to some projects exceeding even the three-year construction timeline.

Looking forward, the Building Division expects cost recovery performance to improve following the adoption of updated fees based on the Cost-of-Service Study and User Fee Study that were just completed and adopted.

Routine reassessment of fees will ensure continued alignment between fees collected and the actual costs of service delivery while maintaining the Town’s commitment to customer service and operational transparency.

With the delay between the collection of permit fees and the associated expenditure of staff and consultant time, it is important to understand that Building Division revenues and expenses do not necessarily align with the cost recovery model for each fee type. Thus, as long as inspection revenues are pushed forward and the Town’s expenses remain balanced, the Town will be able to maintain cost recovery of 90-100% moving forward. Reassessment every five years is recommended to help ensure effective cost recovery is achieved. This same approach will also be applied to fees within the planning division and engineering departments to ensure they are meeting their cost recovery goals.

STEP 1
STEP 1
STEP 1
STEP 2
STEP 1
STEP 3
STEP 1
STEP 4
STEP 1
STEP 5
STEP 1
STEP 6
STEP 1
STEP 7
STEP 1
STEP 8
Plan Review & Fees
Plans are reviewed.

Additional fees, such as
impact and inspection
deposits, might be
collected.

Permit Issuance
The building permit is
issued, and
construction can begin.

Construction
Inspections
Inspections are
conducted at various
construction stages.

Additional Reviews
Further inspections or
plan reviews may be
needed, possibly
involving additional fees
or deposits.

Finalization
After all inspections are
passed, the permit is
finalized, and refunds for
deposits can be
requested.

Closeout
Property records are
updated and any
outstanding deposits
are refunded.

Application Review
The Town reviews the
application, collects
plan review fees, and
begins technical
reviews.

Submit Application
A building permit
application is submitted
to the Town.

110
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Community Services Administration (011-1000)
Community Services (Formerly Parks and Recreation)
Community Services Administration (011-1000)
Mission:

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

Description:

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

Program Summary & Major Services:

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

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

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 111 Depart
ment Budgets
Community Services Administration (011-1000)
Program Summary:

Activity
Measurement
Method 2023/24 2024/25 2025/26

1. Recreation program
a. Fee Based Classes/Camps April - March 84 55 68
b. Fee-Based Participants April - March 409 375 250
d. Total Programs April - March 84 55 68

2. Events
a. Shred Event # Households 86/132=218 230 225
b. Guess the Pumpkins Weights #Entries 223 Entries 210 180 e. Pathways Run/Walk #Registrations 500 424 400

3. Notarial Acts FY 305 110 203
a. Appointment 89 93 120

4. Field Rental (excludes Little League) FY
# of Bookings 60 64 80
Total Hours Rented 274.5 285 278
Revenue $5,300 $10,545 $9,230

4. Westwind Barn Operations FY
a. Summer Camp Registrations 145 147 144
b. Town’s Summer Camp Revenue $21,381 $23,358 $20,477
(scheduled but not held due to COVID-19)
*Limited by Health Restrictions
**Limited due to Phase 1 Council Chambers construction
Department Staffing
The Community Services Department staffing is distributed to various divisions and programs as follows.

Department Staffing

COMMITTEES

COMMUNITY

SERVICES

ADMINISTRATION

PARKS & REC

SPECIAL EVENTS WWB FACILITY
TOTAL 2027 -

PROPOSED
Community Services Supervisor 0.2 0.2 0.5 0.2 1.0
Total Full Time 0.2 0.2 0.5 0.2 1.0

112
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Community Services Administration (011-1000)
Department Goals and Accomplishments:
2025-26 Accomplishments 2026-27 Goals
Town Goal: Maintain Quality of Life & Community Character • Provided community events and activities throughout the year for all ages
• Provided the following in-person community events: Drive Thru Shred Events, Pathways Run/Walk, Car Show, Adult Softball Game, Hoedown, Touch a Truck, Halloween Trick-or-Treating at Town Hall, Barn Lighting,
• Increase usage of Open Spaces, Pathways and Parks, and Field Rentals
• Deliver monthly community events/activities to enrich the lives of residents
• Promote positive customer service
• Increase program registration
Town Goal: Promote Public Safety
• Continue to use Nixle and social media to disseminate information
• Strengthened number of Community outreach through posting more frequently, updating website
• Ensured all contractors have the Town added as additional insured and contracts updated
• Fire Safety Plan/Emergency Preparedness: Provided consistent messaging and public education for residents regarding safety mitigation measures
• Committees/Volunteers to strengthen effectiveness and leveraged the use of volunteers
• Parks needs assessment: addressed through the budget process • Continue working with PIO team to disseminate information to the community
• Attend trainings for Logistics
• Promote CERT and PEP trainings for the community
• Ensuring all contractors have the Town added as additional insured and contracts updated
Town Goal: Increase Effective Service Delivery & Governance • Made updates to the website, social media, print material, and email marketing materials
• Answered community questions and concerns
• Utilized Recreation software: CivicRec
• Work with community to answer questions and/or concerns • Encouraged community engagement through Committees/
Commissions, programs, activities, and events
• Assist and promote with updating the City Manager Weekly Report
• Work with community to answer questions and/or concerns • Encouraged community engagement through Committees/
Commissions, programs, activities, and events
• Improve Contract Management: Victoria Dye Equestrian
Agreement and Little League Agreement
• Continue Emergency Prep: update training
• Improve Facility Use Policy
• Streamline Facility Rentals
Town Goal: Promote and Maintain Infrastructure
• Assist Public Works with delivery of CIP • Assist Public Works with delivery of CIP

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 113 Depart
ment Budgets
Community Services Administration (011-1000)
Budget Summary:

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

The Community Services budget decreased by $31,708, or 9% from the FY 2025-26 adopted budget due to reductions in personnel costs and allocations. The decrease in Personnel is due to the removal of an intern from the budget.

The decrease in Contractual Services is primarily due to lower activity guide-related costs—including content development, design, and printing.

114
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Community Services Administration (011-1000)
Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Expenditures
Personnel $ 195,679 $ 69,550 $ 72,681 $ 53,165 $ 53,506 $ 32,942 $ 33,995 $ (20,223) -38% Contractual Services - 850 20 32,000 18,380 22,000 22,000 (10,000) -31% Professional Services 9 244 200 2,700 900 2,500 2,500 (200) -7% Operations 36,990 27,336 27,556 29,260 24,367 30,470 31,300 1,210 4% Allocations Out 582,944 569,969 685,448 233,058 233,058 230,563 230,563 (2,495) -1% Total Expenditures $ 815,623 $ 667,949 $ 785,906 $ 350,183 $ 330,211 $ 318,475 $ 320,359 $ (31,708) -9% Recreation Administration Expenditures
815,623
667,949 785,906
350,183 330,211 318,475 320,359
Actual Budget
0 500,000
1,000,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 115 Depart
ment Budgets
Recreation Programs (011-4110)
Budget Summary:

The Recreation Program budget decreased by $396, or 2% from the FY 2025-26 adopted budget, reflecting minor operational adjustments. Costs are primarily driven by Contract Personnel ($10,000) and Overhead Allocations ($7,513).

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Charges for Services $ 9,481 $ 9,584 $ 12,233 $ 9,500 $ 11,611 $ 9,785 $ 10,079 $ 285 3% Total Revenues $ 9,481 $ 9,584 $ 12,233 $ 9,500 $ 11,611 $ 9,785 $ 10,079 $ 285 3% Expenditures
Contractual Services $ 6,763 $ 6,425 $ 6,060 $ 10,000 $ 7,275 $ 10,000 $ 10,000 $ - 0% Operations 3,664 1,234 419 650 824 600 650 (50) -8%
Allocations Out 22,667 23,921 27,045 7,513 7,513 7,167 7,167 (346) -5% Total Expenditures $ 33,095 $ 31,580 $ 33,524 $ 18,163 $ 15,611 $ 17,767 $ 17,817 $ (396) -2% Recreation Programs Expenditures
33,095 31,580 33,524
15,611 18,163 17,767 17,817
Actual Budget
0 20,000
40,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

116
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Special Events (011-4120)
Budget Summary:

The Special Events budget increased by $60,102, or 21% from the FY 2025-26 adopted budget, primarily due to higher personnel costs associated with staffing support for Town events and community programs. The budget continues to fund recurring community events, event coordination, facility support, public outreach, and operational services necessary to safely host community gatherings. Funding is also included for event logistics, vendor support, insurance, and related operational costs to maintain current service levels and continue providing high-quality community events for residents.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Charges for Services $ 26,052 $ 24,976 $ 18,720 $ 24,000 $ 21,107 $ 24,720 $ 25,462 $ 720 3% Total Revenues $ 26,052 $ 24,976 $ 18,720 $ 24,000 $ 21,107 $ 24,720 $ 25,462 $ 720 3% Expenditures
Personnel $ 13,398 $ 115,647 $ 95,279 $ 77,311 $ 84,312 $ 98,196 $ 101,359 $ 20,885 27% Operations 138,286 117,120 101,204 136,600 62,122 138,100 138,300 1,500 1% Allocations Out 15,132 46,766 52,874 74,095 74,095 111,811 111,811 37,716 51% Total Expenditures $ 166,817 $ 279,533 $ 249,357 $ 288,006 $ 220,529 $ 348,108 $ 351,470 $ 60,101 21% Special Events Expenditures
166,817 166,817
279,533 279,533 249,357 249,357 220,529 220,529
288,006 288,006
348,108 348,108 351,470 351,470
Actual Budget
0 200,000
400,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 117 Depart
ment Budgets
Parks (Renamed From Field Rentals) (011-5100)
Budget Summary:

The Parks Program budget increased by $60,947, or 18% from the FY 2025-26 adopted budget primarily due to higher allocations and personnel costs associated with maintaining Town parks, pathways, preserves, and open space facilities. The budget continues funding for landscape maintenance, invasive vegetation management, tree safety inspections, irrigation repairs, and stewardship activities at Byrne Preserve. Certain contractual services were reduced or restructured from prior years, partially offsetting the overall increase.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Charges for Services $ 50,212 $ 52,585 $ 68,070 $ 57,500 $ 14,660 $ 59,225 $ 61,002 $ 1,725 3% Total Revenues $ 50,212 $ 52,585 $ 68,070 $ 57,500 $ 14,660 $ 59,225 $ 61,002 $ 1,725 3% Expenditures
Personnel $ 93,504 $ 79,600 $ 84,759 $ 91,261 $ 76,204 $ 122,774 $ 126,468 $ 31,514 35% Contractual Services 25,632 46,816 57,761 70,740 69,012 79,000 82,300 8,260 12% Operations 67,611 54,267 77,252 83,564 75,461 88,054 89,054 4,490 5% Allocations Out 11,794 12,447 14,072 87,442 87,442 104,126 104,126 16,684 19% Total Expenditures $ 198,541 $ 193,129 $ 233,844 $ 333,007 $ 308,119 $ 393,954 $ 401,948 $ 60,948 18% Parks Expenditures
198,541 193,129 233,844
333,007 308,119
393,954 401,948
Actual Budget
0 200,000
400,000
600,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

118
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Westwind Community Barn (011-5300)
Budget Summary:

The Westwind Community Barn budget for FY 2025–26 reflects a fiscally conservative approach focused on maintaining essential operations and supporting the Town’s concessionaire model. Westwind Community Barn is a 15-acre Town-owned facility operated by Victoria Dye Equestrian (VDE), which provides boarding and instructional services. The program is primarily funded through Charges for Services, with the Town receiving 20% of lesson gross revenue (stepping down to 18% after $300,000), as well as revenues from VDE Riding Camps.

Expenditures are largely driven by Contractual Services and Allocations. Contractual Services primarily reflect the Town’s pass-through of 80%–82% of camp gross revenues back to VDE, consistent with the concessionaire agreement approved by the City Council in March 2023. In FY 2025–26, overall costs increased in Allocations due to the implementation of a new Cost Allocation Plan, along with modest increases in Operations related to supplies and facility upkeep.

This fiscal year reflects the Town’s broader effort to remain fiscally disciplined, particularly in light of rising costs such as the Sheriff’s contract. As a result, the program continues to emphasize cost containment while ensuring the facility remains operational and well-maintained. The agreement also outlines that the Town is responsible for costs associated with major damage from natural disasters, while larger capital or maintenance projects require City Council or City Manager approval.

Looking ahead to FY 2026–27, staff will continue to monitor revenue performance, facility needs, and enter into a new VDE contract. Opportunities to refine the concessionaire structure and ensure long-term financial sustainability will be evaluated.

The Westwind Community Barn budget increased by $27,572, or 6% from the FY 2025-26 adopted budget primarily due to higher personnel, operational, and overhead allocation costs. Staff will continue to monitor revenue performance, facility needs, and opportunities to refine the concessionaire structure as the Town evaluates a future agreement with VDE and the long-term financial sustainability of the program.

Parks Expenditures
280,894 309,386 340,467 399,783 463,006 490,578 484,769 Actual Budget
0 250,000
500,000
750,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 119 Depart
ment Budgets
Westwind Community Barn (011-5300)
Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Intergovernmental
Subventions $ - $ - $ - $ 5,000 $ - $ - $ - $ (5,000) 0% Charges for Services 248,595 233,545 242,925 215,000 256,252 221,450 228,094 6,450 3% Total Revenues $ 248,595 $ 233,545 $ 242,925 $ 220,000 $ 256,252 $ 221,450 $ 228,094 $ 1,450 1% Expenditures
Personnel $ 54,603 $ 83,630 $ 78,862 $ 80,144 $ 69,453 $ 96,728 $ 99,618 $ 16,584 21% Contractual Services 182,068 173,503 194,916 224,780 185,735 234,700 238,500 9,920 4% Operations 22,643 29,857 41,162 43,926 30,438 33,329 20,829 (10,597) -24% Allocations Out 21,580 22,395 25,527 114,156 114,157 125,822 125,822 11,666 10% Total Expenditures $ 280,894 $ 309,386 $ 340,467 $ 463,006 $ 399,783 $ 490,578 $ 484,769 $ 27,573 6%

120
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Public Works Administration
Public Works
Public Works Administration
Mission:

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

Organization:

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

Description:

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

Program Summary & Major Services:

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

Program Summary:

Activity
Measurement
Method 2023/24 2024/25 2025/26

1. Capital project management
a. In progress
•Design phase 14 8 11
• Construction phase 5 6 15
b. Completed 8 7 10

2. Public right-of-way maintenance
a. Pathways Linear miles (LM) 85 85 86
b. Annual tree survey # of trees inspected 111 147 310
•Sudden Oak Death spraying in Byrne Preserve # of trees - 238 - c. Streets Maintained ( % of 65 total miles ) Linear miles (LM) 4.1 (6.6%) 4.5 (7.2%) 2.2 (3.5%) d. Sewer Linear miles (LM) 25 25 25

3. Permit Review Total # 152 116 162
a. Sewer # of Sewer Permits 40 43 49

4. Los Altos Hills Connect APP / iWorQ Work Order System & Citizen Engagement
# of service requests (
April 1 to March 31 ) 768 700 475

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 121 Depart
ment Budgets
Public Works Administration
Department Staffing
Public Works Department staffing is distributed to various divisions and programs as follows.

122 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Department Budgets
Public Works Administration
Committees
Corp Yard
Operations
(for Internal
Service Fund)
Engineering
Administration Parks
Pathway
Operations
Sewer Fund
Operations
Storm Drain
Operations
Street
Operations
Town Center
Operations
(for Internal
Service Fund)
Vehicle /
Equipment
Operations
(for Internal
Service Fund) Wwb Facility
TOTAL 2027 -

PROPOSED
Associate Engineer 0.2 - 1.2 - 0.2 0.2 0.1 0.1 - - - 2.0 Engineering Technician - - 0.5 - - 0.1 0.1 - 0.1 - - 1.0 Maintenance Superintendent - - 0.1 - 0.2 - 0.1 0.2 0.1 0.1 - 1.0 Maintenance Worker I - - - - 0.3 - 0.2 0.2 - - - 1.0
Maintenance Worker II - - - 0.1 0.2 - 0.1 0.2 - 0.1 - 1.0 Maintenance Worker III - 0.1 - 0.1 0.6 0.1 0.3 0.5 0.1 0.2 - 2.0 Project Manager - - 0.6 - - - 0.1 - - - - 1.0
Public Works Director / City
Engineer 0.1 - 0.3 - 0.1 0.2 - - - - - 1.0
Utilities Manager - - 0.2 - - 0.4 0.2 - - - - 1.0
Total Full Time 0.4 0.4 2.9 0.6 1.8 1.0 1.2 1.4 0.6 0.5 0.3 11.0

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 123 Depart
ment Budgets
Public Works Administration
Department Goals and Accomplishments:
2025-26 Accomplishments 2026-27 Goals
Town Goal: Maintain Quality of Life & Community Character • Manual removal of stinkwort growth along roadside and in pathway easements.
• Addressed approximately 500 work order requests through Citizen Engagement portal and iWorQ work order system.
• Stewardship and habitat restoration programs including removal of invasive plants at Byrne Preserve through Grassroot Ecology. • Continue mitigation of stinkwort growth in public right-of-way (ROW) and pathway easements.
• Continue Sudden Oak Death mitigation at Byrne Preserve. • Continue Byrne Preserve restoration and stewardship program focusing on abatement of non-native/invasive species and fire hazard vegetation.
• Continue to address work order requests through Citizen Engagement portal and iWorQ work order system.

Town Goal: Promote Public Safety
• Completed construction for the 2025 Sanitary Sewer Repair Replacement Project.
• Completed Town-wide tree inspections on highly used roadways and pathways, park, and Byrne Preserve. Notified and guided residents on street trees identified as potential hazards. • Sewer operation and maintenance through West Bay Sanitary District.
• Installed road safety and traffic calming signage and pavement marks on seven (7) at-risk curved street segments.
• Awarded $180,000 in Safe Streets for All (SS4A) grant from Federal Highway Administration for Local Roadway Safety Plan (or Traffic Safety Plan).
• Complete construction of the 2026 Sanitary Sewer Repair and Replacement project.
• Continue Town-wide tree inspection on highly used roadways and pathways, park, and Byrne Preserve.
• Continue to notify and guide residents of street trees identified with potential hazards.
• Continue sewer operation and maintenance contract with West Bay Sanitary District.
• Prepare the Townwide Traffic Safety Plan using SS4A Grant funds.
• Continue implementing road safety and traffic calming measures.

Town Goal: Increase Effective Service Delivery & Governance • Implemented the updated 2025 Pathway Impact Fee.
• Updated the Engineering service fees to better recover costs. • Promoted biking, walking, and other active means of
transportation through the Measure B Bike/Pedestrian Education & Encouragement Program.
• Initiated negotiations with Palo Alto and Los Altos regarding sewer charges and sewer agreements.
• Continue to improve/update the Public Works Manual for standardization of process and procedures and to preserve institutional knowledge of Town staff.
• Continue Promoting biking, walking, and other active means of transportation through the Measure B Bike/Pedestrian Education & Encouragement Program.
• Continue to replace and update Town vehicles and equipment to meet State regulations, Town policies, and goals for Climate Action Plan.

Westwind Community Barn

124
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Public Works Administration
Town Goal: Protect and Maintain Infrastructure
• Completed 2025 Sanitary Sewer Rehabilitation CIP.
• Completed FY2025/26 Pavement Rehabilitation and Storm Drainage Improvements.
• Purchased a replacement chipper and one electric vehicle (EV) to replace existing gas truck maintenance services.
• Completed the State Water Board’s annual Storm Water Annual Report.
• Continued to work with Pathway Committee to identify and develop new pathway projects and procedures.
• Completed the El Monte Fire Station Utility Undergrounding (Rule 20A) project.
• Completed the Heritage House Upgrade project.
• Completed the Corporation Yard Locker Room Phase 1 project. • Completed the Matadero Creek Restoration and Bank
Stabilization project.
• Replaced all street name and regulatory signs for the Street Sign Replacement Project.
• Assisted in the facilitation of the Los Altos Hills Community Fiber (LAHCF) underground broadband project at three priority sites as approved by Council.
• Complete 2026 Sanitary Sewer Rehabilitation CIP.
• Complete the annual State Water Board’s Storm Water Annual Reports in time.
• Complete FY2026/27 Pavement Rehabilitation and Storm
Drainage Improvements.
• Recommend strategies for utilizing the remaining Rule 20A credits.
• Continue maintenance and monitoring of the offsite mitigation work at Byrne Preserve for the Matadero Creek Restoration and Bank Stabilization project.
• Finalize design and start replacement of the Parks & Recreation Building with a prefabricated building.
• Develop a long-term plan for pathway construction.
• Construct and rehabilitate pathways as prioritized and approved by the Pathways Committee and City Council.
• Provide routine pathway maintenance and work order service requests throughout the Town pathways.
• Construct Magdalena Avenue Pathway.
• Continue with Vehicle and Equipment Replacement.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 125 Depart
ment Budgets
Engineering (011-3300)
Budget Summary:

Engineering Administration’s work includes capital improvement management, development reviews, site inspections, contract management, public inquiry research, and support of other Town departments and citizen committees. Starting FY 2026-27, Engineering would take the lead in processing parcel management applications (final maps, lot line adjustments, easements, etc.).

The budget increased by $581,344, or 57% compared to the FY 2025-26 adopted budget largely due to reallocation of staff from other programs. As part of the updated fee study and cost allocation methodology, engineering staff previously allocated across Planning and Building for development-related work are now budgeted directly within Engineering. Engineering will recover these costs through its own engineering fee structure rather than through Planning and Building fees. Revenues also increased due to the new engineering fees, which improves cost recovery.

0.05 FTE Management Analyst was also allocated to this program.

Engineering Expenditures
976,545 1,106,189 1,242,572 1,023,012 965,307
1,604,356 1,628,010
Actual Budget
0 1,000,000
2,000,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

126
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Engineering (011-3300)
Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Licenses and Permits $ - $ - $ - $ - $ - $ 396,516 $ 403,708 $ 396,516 0% Charges for Services 23,663 105,116 178,073 130,000 166,064 365,313 365,313 235,313 181% Total Revenues $ 23,663 $ 105,116 $ 178,073 $ 130,000 $ 166,064 $ 761,829 $ 769,021 $ 631,829 486% Expenditures
Personnel $ 299,216 $ 336,634 $ 330,138 $ 271,173 $ 240,872 $ 739,724 $ 762,178 $ 468,551 173% Contractual Services 21,785 89,269 142,907 107,000 101,404 138,000 138,000 31,000 29% Professional Services 15,098 1,753 - 16,500 12,200 19,500 19,500 3,000 18% Operations 46,790 41,897 34,759 83,793 65,509 76,708 77,908 (7,085) -8% Capital Outlay
Spending - - 330 - 776 5,000 5,000 5,000 0%
Allocations Out 593,655 636,636 734,437 544,546 544,546 625,424 625,424 80,878 15% Total Expenditures $ 976,545 $ 1,106,189 $ 1,242,572 $ 1,023,012 $ 965,307 $ 1,604,356 $ 1,628,010 $ 581,344 57%

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 127 Depart
ment Budgets
Engineering (011-3300)
Los Altos Hills Sewer Manhole Replacement Project

128
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Sewer (048: Capital, 051: Operation)
Budget Summary:

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

As a result, the FY 2026-27 sewer service charge rates will increase respectively to $2,035 per main unit of service.

FY 2026-27 is the last sewer rate increase approved through the 2022 sewer rate study. Each Accessory Dwelling Unit (ADU) sewer service charge is 50% of the main unit service charge.

Due to increasing costs of the Palo Alto Regional Waste Quality Control Plant (RWQCP) operations and capital projects, it may be necessary to conduct another sewer rate study in FY 2026-27 in preparation for FY 2027-28.

The Town also started discussions with the Cities of Palo Alto and Los Altos to amend the sewer treatment and conveyance agreements, which would alter how the Town would be billed on sewer charges, to a more fair and industry acceptable approach. The timeline of these negotiations will have an impact on when the new sewer rate study would need to be conducted.

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

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

The budget decreased by $557,284, or 9% from the FY 2025-26 adopted budget. The increase in Contractual Services is primarily due to a rise in costs associated with the RWQTP.

0.05 FTE Management Analyst was also allocated to this program.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 129 Depart
ment Budgets
Sewer (048: Capital, 051: Operation)
Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$
Difference
2025-26
Budget
to 2026-
27 %
Difference
2025-26
Budget
to 2026-
27 Revenues
Use of Money and
Property $ 24,407 $ 171,190 $ 338,832 $ 166,116 $ 200,114 $ 154,979 $ 141,553 $ (11,137) -7% Charges for Services - 6,145 6,691 - 1,973 - - - 0%
Miscellaneous Revenues 1,946 7,049 2,293 - - - - - 0%
Transfers In 1,179,650 9,858 532,635 910,976 622,299 923,293 923,636 12,317 1% Sewer Connection Fees 97,754 154,081 182,857 129,430 126,631 158,000 158,000 28,570 22% Sewer Assessment
Charges 3,263,652 3,534,615 3,760,895 4,105,898 4,086,401 4,285,844 4,285,844 179,946 4% Total Revenues $4,567,409 $3,882,938 $4,824,203 $ 5,312,420 $5,037,419 $5,522,116 $5,509,033 $ 209,696 4% Expenditures
Personnel $ 353,709 $ 280,727 $ 297,862 $ 283,189 $ 281,763 $ 236,538 $ 243,402 $ (46,651) -16% Contractual Services 2,088,210 2,461,461 2,665,525 3,436,000 3,287,941 3,746,000 3,856,000 310,000 9% Professional Services 14,919 13,100 50,382 25,500 104,720 112,000 25,500 86,500 339% Operations 14,823 14,787 18,964 18,794 17,021 19,972 19,972 1,178 6% Capital Outlay Spending (95,244) (47,931) (89,773) 900,000 499,206 - - (900,000) 0% Miscellaneous
Expenditures 260,918 260,918 276,183 - - - - - 0%
Transfers Out 1,170,350 - 522,183 900,000 (611,223) (911,885) (911,885) 11,885 1% Allocations Out 289,555 280,939 325,087 469,578 469,578 449,382 449,382 (20,196) -4% Total Expenditures $4,097,240 $3,264,000 $4,066,412 $ 6,033,061 $5,271,453 $5,475,777 $5,506,141 $ (557,284) -9% Sewer Expenditures
499,206
4,192,484 3,311,931 4,156,185 4,772,247
900,000
5,133,061 5,475,777 5,506,141
Actual CIP Actual Ops Budget CIP Budget Ops
-4,800,000
-2,400,000
0 2,400,000
4,800,000
7,200,000
9,600,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

130
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Storm Drain Operations (011-4500)
Budget Summary:

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

The budget increased by $18,590, or 3% from the FY 2025-26 adopted budget due to increases in contract services to fund the Storm Drainage fee study.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Expenditures
Personnel $ 152,423 $ 219,284 $ 227,290 $ 265,483 $ 236,293 $ 262,270 $ 270,447 $ (3,213) -1% Contractual Services 245,420 18,763 (2,811) 40,000 12,727 75,000 45,000 35,000 88% Professional Services 800 - 2,811 15,000 5,000 15,000 15,000 - 0% Operations 22,825 31,205 39,558 40,054 48,467 42,054 42,108 2,000 5% Allocations Out 132,859 120,769 138,365 206,584 206,584 191,387 191,387 (15,197) -7% Total Expenditures $ 554,327 $ 390,021 $ 405,213 $ 567,121 $ 509,071 $ 585,711 $ 563,942 $ 18,590 3% Drainage Operation Expenditures
554,327
390,021 405,213
509,071 567,121 585,711 563,942
Actual Budget
0 250,000
500,000
750,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 131 Depart
ment Budgets
Street Operations (011-4600)
Budget Summary:

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

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

The budget decreased by $123,651, or 14% from the FY 2025-26 adopted budget. The decrease is due to reallocation of staff to other programs.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Licenses and Permits $ 652 $ 652 $ 2,080 $ - $ - $ - $ - $ - 0% Miscellaneous
Revenues - 263 - - 974 - - - 0%
Total Revenues $ 652 $ 915 $ 2,080 $ - $ 974 $ - $ - $ - 0% Expenditures
Personnel $ 242,952 $ 266,353 $ 307,849 $ 396,411 $ 341,198 $ 303,736 $ 313,676 $ (92,676) -23% Contractual Services 142,459 87,840 60,874 148,300 48,625 123,300 123,300 (25,000) -17% Professional Services - 2,756 119 - 164 - - - 0%
Operations 25,487 32,423 12,784 24,723 29,088 32,808 32,808 8,085 33% Allocations Out 253,144 244,022 282,163 339,902 339,902 325,841 325,841 (14,061) -4% Total Expenditures $ 664,043 $ 633,394 $ 663,789 $ 909,336 $ 758,977 $ 785,685 $ 795,625 $ (123,652) -14% Street Operation Expenditures
664,043 633,394 663,789 758,977
909,336
785,685 795,625
Actual Budget
0 500,000
1,000,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

132
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Pathway Operations (011-4740)
Budget Summary:

The Pathway Operations budget decreased by $165,849, or 15% from the FY 2025-26 adopted budget, primarily due to reallocation of staff to other programs.

0.05 FTE Management Analyst was also allocated to this program.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Expenditures
Personnel $ 348,295 $ 397,589 $ 490,583 $ 523,649 $ 471,797 $ 372,511 $ 384,539 $ (151,139) -29% Contractual Services 81,431 59,826 76,221 85,000 56,230 80,000 80,000 (5,000) -6% Professional Services - - 263 - - - - - 0%
Operations 5,246 2,638 3,112 10,162 6,847 14,326 14,326 4,164 41% Allocations Out 205,248 193,855 223,192 456,669 456,669 442,794 442,794 (13,875) -3% Total Expenditures $ 640,220 $ 653,909 $ 793,371 $ 1,075,480 $ 991,542 $ 909,631 $ 921,659 $ (165,850) -15% Pathway Operation Expenditures
640,220 653,909 793,371
991,542 1,075,480 909,631 921,659
Actual Budget
0 500,000
1,000,000
1,500,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 133 Depart
ment Budgets
Corporation Yard Operations (061-4300)
Budget Summary:

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

The Corporation Yard Operations budget increased by $29,047, or 13% from the FY 2025-26 adopted budget, primarily due to higher personnel costs. 0.05 FTE Management Analyst was also allocated to this program.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Allocations In $ 146,797 $ 142,482 $ 142,075 $ 225,288 $ 225,288 $ 279,541 $ 279,541 $ 54,253 24% Total Revenues $ 146,797 $ 142,482 $ 142,075 $ 225,288 $ 225,288 $ 279,541 $ 279,541 $ 54,253 24% Expenditures
Personnel $ 59,514 $ 53,210 $ 69,296 $ 84,169 $ 78,329 $ 104,199 $ 107,366 $ 20,031 24% Contractual Services 12,035 28,259 24,133 38,000 31,555 42,000 43,000 4,000 11% Professional Services - 985 - 1,000 - - - (1,000) 0%
Operations 69,291 58,662 58,088 99,619 53,715 105,636 108,636 6,017 6% Capital Outlay
Spending 5,744 1,367 2,769 2,500 - 2,500 2,500 - 0%
Total Expenditures $ 146,584 $ 142,482 $ 154,287 $ 225,288 $ 163,599 $ 254,335 $ 261,502 $ 29,048 13% Corporation Yard Operation Expenditures
146,584 142,482 154,287 163,599
225,288 254,335 261,502
Actual Budget
0 100,000
200,000
300,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

134
Depart
ment Budgets
Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Vehicle Operations (061-4400)
Budget Summary:

Vehicle Operations is an internal service fund division. Internal Service Fund expenditures are allocated to various departments and accounted for within “Allocations Out.” The Vehicle Operations budget decreased by $10,750, or 6% from the FY 2025-26 adopted budget, largely due to cost reductions in operations.

Six-Year Comparison
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
Revenues
Allocations In $ 105,696 $ 94,342 $ 151,725 $ 178,926 $ 178,926 $ 191,174 $ 191,174 $ 12,248 7% Total Revenues $ 105,696 $ 94,342 $ 151,725 $ 178,926 $ 178,926 $ 191,174 $ 191,174 $ 12,248 7% Expenditures
Personnel $ 44,799 $ 48,707 $ 68,199 $ 97,165 $ 87,952 $ 103,465 $ 106,727 $ 6,300 6% Contractual Services 5,332 1,107 1,588 5,000 847 5,250 5,500 250 5% Operations 55,565 44,527 81,938 76,761 17,778 59,461 62,061 (17,300) -23% Capital Outlay
Spending - - (103,177) - - - - - 0%
Miscellaneous
Expenditures 40,533 37,315 63,621 - - - - - 0%
Total Expenditures $ 146,230 $ 131,657 $ 112,169 $ 178,926 $ 106,577 $ 168,176 $ 174,288 $ (10,750) -6% Vehicle Operation Expenditures
146,230 131,657 112,169 106,577
178,926 168,176 174,288
Actual Budget
0 100,000
200,000
2022-23
Actual
2023-24
Actual
2024-25
Actual
2025-26
Budget
2025-26
Est. Actual
2026-27
Budget
Proposal
2027-28
Budget
Plan

Guide to Five‐
Year CIP

136 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Guide to Five‐Year CIP
Guide to 5-Year CIP
Introduction
The Capital Improvement Program (CIP) identifies the Towns capital investments over a five year term. Itis both a fiscal and strategic device that allows for the planning, scoping, prioritization and monitoring of all capital projects. The document quantifies and defines costs, funding sources, departmental responsibilities, project phases and timing. Each year the CIP is reviewed and updated as part of the Citywide financial planning and goalsetting process. At the same time, it sets a vision for longterm planning. Itis also valuable as a community outreach and communications tool as it speaks to major tax dollar investments that are placed in direct and very visible Citywide infrastructure improvements. Such projects involve larger dollar expenditures that normally have a long useful life cycle.

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

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

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

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

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

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

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

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

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

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

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

The program is fully supported by sewer fees and charges.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 137 Guide to Five‐Year CIP
Each of the project descriptions within the various service areas display projected costs for each of the next five years including the proposed allocation for FY 2025-26, planned costs for the following four years, a brief description of each project, the identified area of priority/benefit and a brief commentary of the status of ongoing and current expenditures. For projects where the operational cost impact is known, this information is also included in the description. Inflationary factors are also included where appropriate.

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

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

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

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

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

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

(This Page Intentionally Left Blank)

Capital
Improvement
Plan Summary
and Funding
Sources

140 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Capital Improvement Plan Summary and Funding Sources

CAPITAL IMPROVEMENT PROGRAM SUMMARY
FY 2026-2027 through FY 2030-2031
Division Project # Project Name Funding Sources Prior Appropriations 2026/27 Budget 2027/28 Budget 2028/29 Budget 2029/30 Budget 2030/31 Budget Total Infrastructure
419300 BROADBAND
INFRASTRUCTURE CIP/ General Fund $ 107,014 $ 0 $ 0 $ 0 $ 0 $ 0 $ 107,014 TR4169-27 BYRNE PRESERVE
RESTORATION Valley Water $ 0 $ 0 $ 51,000 $ 51,000 $ 51,000 $ 51,000 $ 204,000 CIP/ General Fund $ 58,754 $ 104,349 $ 58,000 $ 60,500 $ 63,050 $ 65,651 $ 410,304 410209-27 CABLE SERVICE COST
SHARING PROGRAM CIP/ General Fund $ 0 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 0 $ 200,000 410234 CORPORATION YARD
IMPROVEMENTS CIP/ General Fund $ 53,513 $ 0 $ 0 $ 0 $ 0 $ 0 $ 53,513 410216

EL MONTE FIRE STATION

UNDERGROUNDING PROJECT
(RULE 20A) PG&E Rule 20A $ 685,137 $ 0 $ 0 $ 0 $ 0 $ 0 $ 685,137 CIP/ General Fund $ 276,873 $ 0 $ 0 $ 0 $ 0 $ 0 $ 276,873

TBD HERITAGE HOUSE NATIVE
GARDEN (NEW) Valley Water $ 0 $ 387,600 $ 0 $ 0 $ 0 $ 0 $ 387,600 CIP/ General Fund $ 0 $ 68,400 $ 0 $ 0 $ 0 $ 0 $ 68,400 410224 HERITAGE HOUSE UPGRADE CIP/ General Fund $ 137,229 $ 0 $ 0 $ 0 $ 0 $ 0 $ 137,229 CDBG $ 40,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 40,000
410227-27 MISCELLANEOUS
TECHNOLOGY CIP/ General Fund $ 18,610 $ 60,000 $ 60,000 $ 0 $ 0 $ 0 $ 138,610 410237 PARKS AND RECREATION
BUILDING REPLACEMENT CIP/ General Fund $ 184,016 $ 1,300,000 $ 0 $ 0 $ 0 $ 0 $ 1,484,016 410225

PURISSIMA PARK

IMPROVEMENT PROGRAM
(FIELD & FACILITY
IMPROVEMENTS) CIP/ General Fund $ 82,301 $ 30,000 $ 30,000 $ 30,000 $ 0 $ 0 $ 172,301 467230 ROAD SAFETY AND TRAFFIC
CALMING CIP/ General Fund $ 60,000 $ 60,000 $ 0 $ 60,000 $ 0 $ 60,000 $ 240,000 410235 Security System and Access
Control Panel Upgrades CIP/ General Fund $ 190,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 190,000 410236

TOWN HALL AND COUNCIL

CHAMBERS HVAC

IMPROVEMENTS (RENAMED

FROM TOWN FACILITIES
ENERGY EFFICIENCY) CIP/ General Fund $ 220,000 $ 280,000 $ 0 $ 0 $ 0 $ 0 $ 500,000 410233 TRAFFIC SIGNAL
IMPROVEMENTS CIP/ General Fund $ 45,961 $ 0 $ 0 $ 0 $ 0 $ 0 $ 45,961 Infrastructure Total $ 2,159,407 $ 2,340,349 $ 249,000 $ 251,500 $ 164,050 $ 176,651 $ 5,340,957 Pathways
427914 MAGDALENA ROAD PATHWAY TDA Article 3 $ 45,136 $ 38,697 $ 0 $ 0 $ 0 $ 0 $ 83,833 Pathway Fund $ 340,639 $ 0 $ 0 $ 0 $ 0 $ 0 $ 340,639
427915

MAPLE LEAF - MIDDLE FORK
LANE PATHWAY Pathway Fund $ 89,723 $ 150,000 $ 0 $ 0 $ 0 $ 0 $ 239,723

141 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Capital Improvement Plan Summary and Funding Sources

CAPITAL IMPROVEMENT PROGRAM SUMMARY
FY 2026-2027 through FY 2030-2031
Division Project # Project Name Funding Sources Prior Appropriations 2026/27 Budget 2027/28 Budget 2028/29 Budget 2029/30 Budget 2030/31 Budget Total 427913-27 MISCELLANEOUS PATHWAYS Pathway Fund $ 45,655 $ 0 $ 100,000 $ 100,000 $ 100,000 $ 0 $ 345,655 427902 SUMMERHILL PATHWAY Pathway Fund $ 450,896 $ 0 $ 0 $ 0 $ 0 $ 0 $ 450,896 Pathways Total $ 972,049 $ 188,697 $ 100,000 $ 100,000 $ 100,000 $ 0 $ 1,460,746 Road Rehabilitation
467226-27

ANNUAL ROAD

REHABILITATION PROGRAM
Vehicle Registration
Fees SB 83 $ 66,500 $ 60,486 $ 63,500 $ 66,700 $ 70,000 $ 73,500 $ 400,686 Street Encroachment
Fees $ 107,100 $ 200,000 $ 210,000 $ 220,500 $ 231,500 $ 243,100 $ 1,212,200 SB1 Funds $ 229,559 $ 239,844 $ 251,800 $ 264,400 $ 277,600 $ 291,500 $ 1,554,703 Measure B $ 254,596 $ 214,158 $ 224,900 $ 236,100 $ 247,900 $ 260,300 $ 1,437,954 Gas Tax $ 247,920 $ 254,356 $ 267,100 $ 280,500 $ 294,500 $ 309,200 $ 1,653,576 Drainage in-lieu $ 40,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 40,000
CIP/ General Fund $ 500,222 $ 431,156 $ 382,700 $ 331,800 $ 278,500 $ 222,400 $ 2,146,778 467229 LOCAL ROAD SAFETY PLAN SS4A $ 180,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 180,000 CIP/ General Fund $ 45,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 45,000 467228

MEASURE B BIKE/

PEDESTRIAN EDUCATION &
ENCOURAGEMENT PROGRAM Measure B $ 42,777 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 92,777 Road Rehabilitation Total $ 1,713,674 $ 1,410,000 $ 1,410,000 $ 1,410,000 $ 1,410,000 $ 1,410,000 $ 8,763,674 Sewer
487918-27

ANNUAL SANITARY SEWER
REPLACEMENT AND REHAB Sewer User Charges $ 342,527 $ 900,000 $ 900,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 5,142,527 Sewer Total $ 342,527 $ 900,000 $ 900,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 5,142,527 Storm Drain
467209 MATADERO CREEK EROSION Drainage in-lieu $ 34,353 $ 50,000 $ 50,000 $ 30,000 $ 50,000 $ 30,000 $ 244,353 457202

STORM DRAIN
IMPROVEMENTS Drainage in-lieu $ 77,757 $ 30,000 $ 0 $ 0 $ 0 $ 0 $ 107,757 Storm Drain Total $ 112,110 $ 80,000 $ 50,000 $ 30,000 $ 50,000 $ 30,000 $ 352,110 Vehicle and Equipment
410106-27

VEHICLE AND EQUIPMENT

REPLACEMENT (NEW)
Silicon Valley Clean
Energy - SVCE $ 155,736 $ 0 $ 0 $ 0 $ 0 $ 0 $ 155,736
CIP/ General Fund $ 100,000 $ 100,000 $ 120,000 $ 120,000 $ 120,000 $ 0 $ 560,000 Vehicle and Equipment Total $ 255,736 $ 100,000 $ 120,000 $ 120,000 $ 120,000 $ 0 $ 715,736 Westwind Community Barn
437307-27

WESTWIND COMMUNITY
BARN IMPROVEMENTS Westwind Barn Capital $ 103,871 $ 0 $ 0 $ 0 $ 0 $ 0 $ 103,871 CIP/ General Fund $ 50,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 50,000 Cell Tower Rental $ 0 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Westwind Community Barn Total $ 153,871 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 403,871 Grand Total $ 5,709,374 $ 5,069,046 $ 2,879,000 $ 2,961,500 $ 2,894,050 $ 2,666,651 $ 22,179,621

142 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Capital Improvement Plan Summary and Funding Sources

CAPITAL IMPROVEMENT PROGRAM FUNDING SOURCE
FY 2026-2027 through FY 2030-2031
Funding Source Remaining Balance as of 3/31/2026 Fiscal Year 2026/27 Budget Fiscal Year 2027/28 Budget Fiscal Year 2028/29 Budget Fiscal Year 2029/30 Budget Fiscal Year 2030/31 Budget Total Project
Funding
CDBG $ 40,000 $ - $ - $ - $ - $ - $ 40,000
Cell Tower Rental $ - $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 CIP/ General Fund $ 2,129,492 $ 2,483,905 $ 700,700 $ 652,300 $ 511,550 $ 348,051 $ 6,825,998 Drainage in-lieu $ 152,110 $ 80,000 $ 50,000 $ 30,000 $ 50,000 $ 30,000 $ 392,110 Gas Tax $ 247,920 $ 254,356 $ 267,100 $ 280,500 $ 294,500 $ 309,200 $ 1,653,576 Measure B $ 297,373 $ 224,158 $ 234,900 $ 246,100 $ 257,900 $ 270,300 $ 1,530,731 Pathway Fund $ 926,913 $ 150,000 $ 100,000 $ 100,000 $ 100,000 $ - $ 1,376,913 PG&E Rule 20A $ 685,137 $ - $ - $ - $ - $ - $ 685,137
SB1 Funds $ 229,559 $ 239,844 $ 251,800 $ 264,400 $ 277,600 $ 291,500 $ 1,554,703 Sewer User Charges $ 342,527 $ 900,000 $ 900,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 5,142,527 Silicon Valley Clean Energy -
SVCE $ 155,736 $ - $ - $ - $ - $ - $ 155,736
SS4A $ 180,000 $ - $ - $ - $ - $ - $ 180,000
Street Encroachment Fees $ 107,100 $ 200,000 $ 210,000 $ 220,500 $ 231,500 $ 243,100 $ 1,212,200 TDA Article 3 $ 45,136 $ 38,697 $ - $ - $ - $ - $ 83,833 Valley Water $ - $ 387,600 $ 51,000 $ 51,000 $ 51,000 $ 51,000 $ 591,600 Vehicle Registration Fees SB 83 $ 66,500 $ 60,486 $ 63,500 $ 66,700 $ 70,000 $ 73,500 $ 400,686 Westwind Barn Capital $ 103,871 $ - $ - $ - $ - $ - $ 103,871 Grand Total $ 5,709,374 $ 5,069,046 $ 2,879,000 $ 2,961,500 $ 2,894,050 $ 2,666,651 $ 22,179,621

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 143 Capital Improve
ment Plan Summary and Funding Sources

BROADBAND INFRASTRUCTURE
Department: Public Works
Program: Infrastructure
Project Number: 419300
Initial funding year: FY23
Planned start date: July 2022
Estimated completion date: Q4 FY26
Project Description
The Town applied for the American Rescue Plan Act funds (ARPA) in March 2021 and received $1,007,480 on July 13, 2021, with an equal amount received in 2022. At the February 17, 2022 City Council meeting, a resolution was adopted to allocate a portion of these funds toward the development of a broadband master plan and the expansion of broadband infrastructure in areas of need.

Project Status
The Council approved a $725,000 Fiber Broadband Funding Agreement with LAHCF in October 2024 to install underground fiber at three priority locations. In November 2025, the Council approved an extension of the agreement term from December 31, 2025, to June 30, 2026. All work in the Funding Agreement is anticipated to be completed by June 2026.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Broadband Infrastructure $ 813,105 $ 692,986 $ 120,119 $ 13,105 $ 107,014 Total: $ 813,105 $ 692,986 $ 120,119 $ 13,105 $ 107,014 Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
CIP/ General Fund $ 107,014 $ 107,014
Total Funding: $ 107,014 $ - $ - $ - $ - $ - $ 107,014
Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Broadband Infrastructure $ 107,014 $ 107,014
Total Spending: $ 107,014 $ - $ - $ - $ - $ - $ 107,014 Recurring annual maintenance and operating costs, if applicable Not applicable. LAHCF to operate and maintain its underground fiber.

144 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Capital Improve
ment Plan Summary and Funding Sources

BYRNE PRESERVE RESTORATION
Department: Public Works
Program: Infrastructure
Project Number: TR4169-27
Initial funding year: FY23
Planned start date: July 2022
Estimated completion date: Ongoing
Project Description
Since 2013, the Town facilitated a stewardship program and public outreach activities for Byrne Preserve, with the goal of preserving Town assets and building community value that protects and enhances our environment. Grassroots Ecology has been the primary vendor at Byrne Preserve, providing habitat restoration activities along Moody Creek, removal of invasive plants, replanting native vegetation, monitoring plant establishment, and replanting as necessary. Grassroots Ecology has also organized volunteer and educational events related to the preservation of open space.

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

Project Status
Project ongoing. Grassroots Ecology contract extended to June 30, 2027. A new agreement needed starting FY28.

Town applied for Valley Water grant in April 2026. The Town will be notified of the award in July 2026.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Byrne Preserve Restoration $ 101,310 $ 42,556 $ 58,754 $ 58,754 Total: $ 101,310 $ 42,556 $ 58,754 $ - $ 58,754
Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
CIP/ General Fund $ 58,754 $ 104,349 $ 58,000 $ 60,500 $ 63,050 $ 65,651 $ 410,304 Valley Water 51,000 51,000 51,000 51,000 204,000
Total Funding: $ 58,754 $ 104,349 $ 109,000 $ 111,500 $ 114,050 $ 116,651 $ 614,304 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Byrne Preserve Restoration $ 58,754 $ 104,349 $ 109,000 $ 111,500 $ 114,050 $ 116,651 $ 614,304 Total Spending: $ 58,754 $ 104,349 $ 109,000 $ 111,500 $ 114,050 $ 116,651 $ 614,304 Recurring annual maintenance and operating costs, if applicable The purpose of this program is to remove invasive non-native plants and allow native plants to grow naturally. There is no ongoing maintenance necessary once the native plants have matured.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 145 Capital Improve
ment Plan Summary and Funding Sources

CABLE SERVICE COST SHARING PROGRAM
Department: City Manager’s Office
Program: Infrastructure
Project Number: 410209-27
Initial funding year: FY23
Planned start date: July 2024
Estimated completion date: Ongoing program
Project Description
The City Council believes that it is in the public’s interest to have adequate cable and broadband services available to all residents to improve access to public safety information, enhance civic engagement, and support education and digital literacy. In August 2016, the City Council adopted a Cost Sharing Policy for the Construction of Cable System Infrastructure Within Public Ways, under which the Town contributes 25% of eligible expansion costs, with a cap of $25,000. In March 2025, the City Council updated this policy to expand eligibility beyond Comcast to any internet service provider operating within the Town’s right-of-way, allowing more residents to access financial assistance when partnering with providers to extend broadband infrastructure.

Project Status
No residents have submitted cost-sharing applications this year.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Cable Service Expansion $ 50,000 $ 50,000 $ 50,000 $ -
Total: $ 50,000 $ - $ 50,000 $ 50,000 $ -
Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
CIP/ General Fund $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 200,000 Total Funding: $ - $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ - $ 200,000 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Cable Service Expansion $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 200,000 Total Spending: $ - $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ - $ 200,000 Recurring annual maintenance and operating costs, if applicable Maintenance and operational needs would be determined during the design phase.