Los Altos Hills City Council
June 18, 2026

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
General Fund Special Revenue Funds Capital Project Funds Enterprise 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
Expenditures by Function
General Administration $ 2,535,975 $ 2,538,580 $ 2,564,405 $ - $ - $ - - $ - $ - - $ - $ - $ - $ - $ - Finance & Administrative
Services 1,596,142 1,713,596 1,740,406 - - - - - - - - - 1,082,159 1,126,862 1,156,857 Public Safety 3,986,913 4,700,618 4,885,858 - - - - - - - - - - - - Community Development 5,098,613 5,788,593 5,875,000 - - - - - - - - - - - - Community Services 1,339,253 1,712,809 1,737,806 - - - - - - - - - - - - Public Works 3,224,897 3,902,288 3,963,763 - - - - - - 4,049,006 4,597,761 4,638,985 270,176 422,511 439,036 Capital Projects - - - - - - 4,305,925 4,236,821 2,071,923 611,223 917,248 917,252 - - - Non-Departmental 6,620 - - - - - - - - - - - - - -
Total Expenditures
$
17,788,412
$
20,356,485
$
20,767,239 $ - $ - $ - $ 4,305,925 $ 4,236,821 $ 2,071,923 $ 4,660,229 $ 5,515,009 $ 5,556,237 $ 1,352,335 $ 1,549,373 $ 1,595,892

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
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) $ 236,860 $ 508,593 $ 642,003 $ 264,112 $ 163,598 $ 162,420 (2,328,930) $(2,985,157) $ (804,449) (245,109) $ (916,186) $ (970,840) $ 73,771 $ - $ (4,576) Transfers In/(Out)
Transfers In 251,537 150,000 150,000 - - - 2,139,290 2,877,487 757,703 11,076 11,408 11,751 Transfers Out (2,110,366) (2,888,895) (769,453) (251,537) (150,000) (150,000) (40,000) - - - - - - - - Total Transfers In/
(Out) $ (1,858,829) $ (2,738,895) $ (619,453) $ (251,537) $ (150,000) $ (150,000) $ 2,099,290 $ 2,877,487 $ 757,703 $ 11,076 $ 11,408 $ 11,751 $ - $ - $ - Change in Fund
Balance (1,621,969) (2,230,302) 22,550 12,575 13,598 12,420 (229,640) (107,670) (46,746) (234,033) (904,778) (959,089) 73,771 - (4,576) Beginning 18,474,476 16,852,507 14,622,205 497,963 510,538 524,136 2,026,629 1,796,989 1,689,319 5,077,181 4,843,147 3,938,369 941,863 1,015,634 1,015,634 Ending Fund Balance $16,852,507 $14,622,205 $14,644,755 $ 510,538 $ 524,136 $ 536,556 $ 1,796,989 $ 1,689,319 $ 1,642,573 $ 4,843,147 $ 3,938,369 $ 2,979,280 $ 1,015,634 $ 1,015,634 $ 1,011,058

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
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 6.34% $ 10,501,369 $ 416,405 4.13% Taxes Other Than Property 575,010 599,106 705,338 610,750 758,597 688,289 77,539 12.70% 701,655 13,366 1.94% Franchise Fees 391,129 665,597 695,019 705,500 745,623 724,679 19,179 2.72% 744,187 19,508 2.69% Licenses and Permits 1,366,066 1,837,123 1,179,792 2,012,774 1,314,470 1,824,651 (188,122) (9.35%) 1,875,877 51,226 2.81% Use of Money and Property 344,281 1,108,231 1,543,251 955,186 860,457 805,714 (149,472) (15.65%) 752,964 (52,750) (6.55%) Intergovernmental
Subventions 38,439 49,422 147,375 46,000 36,872 37,080 (8,920) (19.39%) 38,193 1,113 3.00% Charges for Services 1,035,404 1,099,638 1,247,996 1,241,926 1,155,608 2,480,059 1,238,134 99.69% 2,522,501 42,443 1.71% Miscellaneous Revenues 82,691 69,012 115,607 18,000 68,478 18,540 540 3.00% 19,097 557 3.00% Allocations In 2,962,480 2,999,794 3,391,544 3,407,530 3,407,530 4,201,103 793,573 23.29% 4,253,394 52,291 1.24% Total Revenues $ 14,949,242 $ 16,959,479 $ 17,971,639 $ 18,481,206 $ 18,025,268 $ 20,865,079 $ 2,383,875 12.90% $ 21,409,237 $ 544,159 2.61% Expenditures
Personnel $ 3,948,097 $ 4,269,910 $ 4,808,842 $ 5,518,512 $ 5,137,915 $ 6,177,608 $ 659,099 11.94% $ 6,367,752 $ 190,144 3.08% Contractual Services 4,747,417 5,871,804 5,436,859 6,018,859 6,223,892 6,591,719 572,860 9.52% 6,752,663 160,944 2.44% Professional Services 292,658 388,138 332,716 347,204 292,069 362,971 15,767 4.54% 370,677 7,706 2.12% Operations 1,106,878 1,160,146 1,255,707 1,662,735 1,527,703 1,818,925 156,190 9.39% 1,773,933 (44,992) (2.47%) Capital Outlay Spending 23,429 - 330 - 776 5,000 5,000 - 5,000 - - Miscellaneous Expenditures - - - 242,000 242,000 254,100 12,100 5.00% 266,805 12,705 5.00% Allocations Out 3,570,115 3,533,074 4,106,736 4,364,056 4,364,057 5,146,162 782,106 17.92% 5,230,409 84,247 1.64% Total Expenditures $ 13,688,594 $ 15,223,073 $ 15,941,191 $ 18,153,366 $ 17,788,412 $ 20,356,485 $ 2,203,122 12.14% $ 20,767,239 $ 410,754 2.02% Operating Surplus/(Deficit) $ 1,260,648 $ 1,736,406 $ 2,030,448 $ 327,840 $ 236,856 $ 508,594 $ 180,754 0.55% $ 641,998 $ 133,404 0.26% Transfers In/(Out)
Transfers In - 177,488 813,742 - 251,537 150,000 150,000 -% 150,000 - -% Transfers Out (2,585,871) (1,725,369) (1,330,599) (1,513,070) (2,110,366) (2,888,895) (1,375,825) 90.93% (769,453) 2,119,442 (73.37%) Total Transfers In/(Out) $ (2,585,871) $ (1,547,881) $ (516,857) $ (1,513,070) $ (1,858,829) $ (2,738,895) $ (1,225,825) 81.02% $ (619,453) $ 2,119,442 (77.38%) Change in Fund Balance $ (1,325,223) $ 188,525 $ 1,513,591 $ (1,185,230) $ (1,621,973) $ (2,230,301) $ (1,045,071) 88.17% $ 22,545 $ 2,252,846 (101.01%) Fund Balance
Beginning 18,083,648 16,758,425 16,946,950 16,679,817 18,474,476 $16,852,507 172,690 1.04% 14,622,206 (2,230,301) (13.23%) Ending Fund Balance $16,758,425 $16,946,950 $18,474,476 $15,494,587 $16,852,507 $14,622,206 $ (872,381) (5.63%) $14,644,755 $ 22,549 0.15%

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
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 $ - $ - $ - $ - - $ - $ - - Allocations In 1,003,314 911,652 1,169,709 1,426,106 1,426,106 1,549,373 123,267 8.64% 1,591,315 41,942 2.71% Total Revenues $ 1,014,915 $ 922,594 $ 1,181,253 $ 1,426,106 $ 1,426,106 $ 1,549,373 $ 123,267 8.64% $ 1,591,315 $ 41,942 2.71% Expenditures
Personnel $ 36,154 $ 98,635 $ 141,810 $ 793,122 $ 462,668 $ 532,421 $ (260,700) (32.87%) $ 556,802 $ 24,381 4.58% Contractual Services 267,525 258,395 297,917 351,000 499,897 419,531 68,531 19.52% 432,500 12,969 3.09% Professional Services 100,981 147,448 212,648 68,000 63,941 82,770 14,770 21.72% 84,842 2,072 2.50% Operations 419,728 294,366 407,648 495,364 324,783 502,150 6,786 1.37% 509,248 7,098 1.41% Capital Outlay Spending 5,772 2,606 (100,408) 133,138 1,045 12,500 (120,638) (90.61%) 12,500 - - Miscellaneous Expenditures 175,351 172,133 194,259 - - - - - - - - Total Expenditures $ 1,005,512 $ 973,582 $ 1,153,874 $ 1,840,624 $ 1,352,335 $ 1,549,373 $ (291,251) (15.82%) $ 1,595,892 $ 46,520 3.00% Operating Surplus/(Deficit) $ 9,403 $ (50,988) $ 27,379 $ (414,518) $ 73,771 $ - $ 414,518 -1.00% $ (4,577) $ (4,578) -1.10% Transfers In/(Out)
Transfers In
Transfers Out
Total Transfers In/(Out) $ - $ - $ - $ - $ - $ - $ - 0% $ - $ - 0%

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
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) (6.70%) $ 141,553 $ (13,426) (8.66%) Charges for Services - 6,145 6,691 - 1,973 - - - - - -
Miscellaneous
Revenues 1,946 7,049 2,293 - - - - - - - -
Sewer Assessment
Charges 3,263,652 3,534,615 3,760,895 4,105,898 4,086,401 4,285,844 179,946 4.38% 4,285,844 - - Sewer Connection Fees 97,754 154,081 182,857 129,430 126,631 158,000 28,570 22.07% 158,000 - - Total Revenues $ 3,387,759 $ 3,873,080 $ 4,291,568 $ 4,401,444 $ 4,415,120 $ 4,598,823 $ 197,379 4.48% $ 4,585,397 $ (13,426) (0.29%) Expenditures
Personnel $ 353,709 $ 280,727 $ 297,862 $ 283,189 $ 281,763 $ 236,538 $ (46,651) (16.47%) $ 244,550 $ 8,012 3.39% Contractual Services 2,088,210 2,461,461 2,665,525 3,436,000 3,287,941 3,746,000 310,000 9.02% 3,856,000 110,000 2.94% Professional Services 14,919 13,100 50,382 25,500 104,720 112,000 86,500 339.22% 25,500 (86,500) (77.23%) Operations 14,823 14,787 18,964 18,794 17,021 19,972 1,178 6.27% 19,972 - - Capital Outlay Spending (95,244) (47,931) (89,773) 900,000 499,206 900,000 - - 900,000 - - Miscellaneous
Expenditures 260,918 260,918 276,183 - - - - - - - -
Allocations Out 289,555 280,939 325,087 469,578 469,578 500,499 30,921 6.58% 510,215 9,716 1.94% Total Expenditures $ 2,926,890 $ 3,264,000 $ 3,544,229 $ 5,133,061 $ 4,660,229 $ 5,515,009 $ 381,948 7.44% $ 5,556,237 $ 41,228 0.75% Operating Surplus/
(Deficit) 460,869 609,080 747,339 (731,617) (245,109) (916,186) (184,569) 25.23% (970,840) (54,654) 5.97% Transfers In/(Out)
Transfers In 9,300 9,858 10,452 10,976 11,076 11,408 432 4% 11,751 343 3% Transfers Out - - - 0% - 0%
Total Transfers In/(Out) $ 9,300 $ 9,858 $ 10,452 $ 10,976 $ 11,076 $ 11,408 $ 432 4% $ 11,751 $ 343 3%

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
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 $ 2,535,975 $ 2,538,580 $ 19,508 0.77% $ 2,564,405 $ 25,826 1.02% Finance & Administrative
Services 1,201,792 1,399,051 1,454,109 1,607,029 1,596,142 1,713,596 106,568 6.63% 1,740,406 26,810 1.56% Public Safety 2,342,287 3,630,942 3,288,791 4,073,524 3,986,913 4,700,618 627,094 15.39% 4,885,858 185,240 3.94% Community Development 3,613,076 4,193,926 4,432,193 4,919,806 5,098,613 5,788,593 868,788 17.66% 5,875,000 86,407 1.49% Community Services 1,494,969 1,481,576 1,643,097 1,452,365 1,339,253 1,712,809 260,446 17.93% 1,737,806 24,997 1.46% Public Works 2,835,134 2,783,512 3,104,944 3,574,949 3,224,897 3,902,288 327,338 9.16% 3,963,763 61,475 1.58% Non-Departmental 2,704,569 1,725,370 1,330,599 1,519,690 2,116,986 2,888,895 1,369,205 90.10% 769,454 (2,119,441) (73.37%) Total Expenditures $ 16,274,465 $ 16,948,442 $ 17,271,790 $ 19,666,436 $ 19,898,779 $ 23,245,380 $ 3,578,947 18.20% $ 21,536,693 $ (1,708,687) (7.35%) Internal Service Funds
Town Benefit $ (195,531) $ (122,702) $ (141,366) $ 143,006 $ 426,496 $ 154,691 $ (271,805) (63.73%) $ 162,426 $ 7,735 5.00% Town Center 904,050 817,965 1,028,784 939,152 1,009,914 972,171 (37,744) (3.74%) 994,431 22,260 2.29% Corporation Yard Operations 146,584 142,482 154,287 163,599 225,288 254,335 29,048 12.89% 262,649 8,314 3.27% Vehicle Operations 146,230 131,657 112,169 106,577 178,926 168,176 (10,750) (6.01%) 176,386 8,211 4.88% Office Equipment 4,179 4,179 - - - - - - - - -
Total Internal Service Funds $ 1,005,512 $ 973,582 $ 1,153,874 $ 1,352,335 $ 1,840,624 $ 1,549,373 $ (291,251) (15.82%) $ 1,595,892 $ 46,520 3.00% Special Revenue Funds
General Administration $ 25,000 $ - $ - $ - $ - $ - $ - - $ - $ - - Public Safety 362,687 8,671 3,004 - - - - - - - -
Capital Projects 633,062 266,551 1,923 - - - - - - - -
Total Special Revenue Funds $ 1,020,749 $ 275,222 $ 4,926 $ - $ - $ - $ - - $ - $ - - Enterprise Funds
Public Works $ 2,926,890 $ 3,263,894 $ 3,543,817 $ 4,226,441 $ 4,049,006 $ 4,597,761 $ 371,320 8.79% $ 4,638,985 $ 41,224 0.90% Capital Projects - - - 906,620 611,223 917,248 10,628 1.17% 917,252 4 - Non-Departmental - 107 412 - - - - - - - -
Total Enterprise Funds $ 2,926,890 $ 3,264,000 $ 3,544,229 $ 5,133,061 $ 4,660,229 $ 5,515,009 $ 381,948 7.44% $ 5,556,237 $ 41,228 0.75%

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 (Actual vs Budget)
FY2022/23 FY2023/24 FY2024/25 FY2025/26 FY2026/27 FY2027/28 General Administration
Administrative Clerk / Technician 1.00 1.00 1.00 1.00 1.00 1.00 Assistant to the City Manager - 0.75 1.00 - 1.00 1.00
City Clerk 1.00 1.00 1.00 1.00 1.00 1.00
City Manager 1.00 1.00 1.00 1.00 1.00 1.00
Deputy City Manager - - - 1.00 - -
Management Analyst - - 1.00 1.00 1.00 1.00
Management Analyst II 1.00 0.25 - - - -
Total General Administration 4.00 4.00 5.00 5.00 5.00 5.00 Finance & Administrative Services
Accountant 1.00 1.00 1.00 - - -
Accounting Technician 1.00 1.00 1.00 1.00 1.00 1.00
Administrative Services Director 1.00 1.00 - - - -
Finance Director - - 1.00 1.00 1.00 1.00
Senior Accountant 1.00 1.00 1.00 2.00 2.00 2.00
Total Finance & Administrative
Services 4.00 4.00 4.00 4.00 4.00 4.00
Community Development
Administrative Clerk / Technician 1.00 1.00 1.00 1.00 - - Assistant Community Development
Director/Building Offical 1.00 1.00 1.00 - - -
Assistant Planner 1.00 1.00 - 2.00 1.00 1.00
Associate Planner - - 1.00 1.00 1.00 1.00
Building Inspector 1.00 1.00 - - - -
Building / Planning Technician 1.00 1.00 1.00 2.00 2.00 2.00 Code Enforcement Officer - - - - 1.00 1.00
Community Dev. Director - 1.00 1.00 1.00 1.00 1.00
Management Analyst - - - 1.00 2.00 2.00
Planning Director 1.00 - - - - -
Planning Permit Technician - - - - 1.00 1.00
Principal Planner 1.00 - - - 1.00 1.00
Senior Planner 1.00 2.00 1.00 1.00 1.00 1.00
Total Community Development 8.00 8.00 6.00 9.00 11.00 11.00 Community Services
Community Services Manager - 1.00 - - - -
Community Services Supervisor - - 1.00 1.00 1.00 1.00
Recreation Specialist 1.00 1.00 - - - -
Senior Community Services
Supervisor 1.00 - - - - -
Total Community Services 2.00 2.00 1.00 1.00 1.00 1.00

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
Personnel Allocations (Actual vs Budget) (continued)
FY2022/23 FY2023/24 FY2024/25 FY2025/26 FY2026/27 FY2027/28 Public Works
Assistant Engineer 2.00 2.00 2.00 2.00 - -
Associate Engineer 1.00 1.00 1.00 - 2.00 2.00
Engineering Technician - - - - 1.00 1.00
Maintenance Superintendent 1.00 1.00 1.00 1.00 1.00 1.00 Maintenance Worker I 1.00 1.00 1.00 1.00 1.00 1.00
Maintenance Worker II 1.00 1.00 1.00 1.00 1.00 1.00
Maintenance Worker III 2.00 2.00 2.00 2.00 2.00 2.00
Project Manager - - - 1.00 1.00 1.00
Public Works Director / City
Engineer 1.00 1.00 1.00 1.00 1.00 1.00
Public Works Inspector - - 1.00 1.00 - -
Utilities Manager 1.00 1.00 1.00 1.00 1.00 1.00
Total Public Works 10.00 10.00 11.00 11.00 11.00 11.00
Summary
General Administration 4.00 4.00 5.00 5.00 5.00 5.00
Finance & Administrative Services 4.00 4.00 4.00 4.00 4.00 4.00 Community Development 8.00 8.00 6.00 9.00 11.00 11.00
Community Services 2.00 2.00 1.00 1.00 1.00 1.00
Public Works 10.00 10.00 11.00 11.00 11.00 11.00
Total 28.00 28.00 27.00 30.00 32.00 32.00
The Management Analyst in Community Development is shared between Community Development and Finance & Administrative Services.

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

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 53 Financial and Personnel Allocation Summaries
FY 2027 Salary Schedule (reflects 3% COLA)
Annual Range Hourly Range
Minimum Maximum Minimum Maximum
City Manager-Set by Contract $ 282,000 $ 282,000 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

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 55 Depart
ment Budgets
Department Overview
Includes Allocations, Excludes Transfers
Department/Division
2025-26
Budget
2026-27
Budget
Proposal
$ Difference
2025-26
Budget
to 2026-27
% Difference
2025-26
Budget
to 2026-27
General Administration
City Council, City Manager, City Attorney, City Clerk, Committees & Commissions $ 2,519,073 $ 2,538,580 $ 19,508 0.01%
Finance & Administrative Services
Finance & Administrative Services, Community Services Grant, Insurance, Fringe Benefits, Town Center $ 3,043,439 $ 2,840,458 -$202,981 -0.07% Public Safety
Public Safety, Animal Control, Citizens Public Safety Program $ 4,073,524 $ 4,700,618 $ 627,094 0.15% Community Development
Planning Administration, Planning Commission, Code Enforcement Operations, Building Operations $ 4,919,806 $ 5,788,593 $ 868,788 0.18% Community Services
Community Services Administration, Recreation Programs, Special Events, Parks, Westwind Community Barn $ 1,452,365 $ 1,712,809 $ 260,446 0.18% Public Works
Engineering Administration, Sewer Operations, Storm Drain Operations, Street Operations, Pathway Operations, Corporation Yard Operations, Vehicle Operations $ 8,205,604 $ 8,922,561 $ 716,956 0.09% Capital Projects
General CIP, Pathways CIP, Drainage CIP, Street CIP, Sewer CIP, Westwind Barn CIP $ 4,155,930 $ 5,154,069 $ 998,139 0.24% Non-Departmental
Non-Departmental $ 6,620 $ 36,040 $ 29,420 4.44%
Total $28,376,361 $ 31,693,728 $ 3,317,370 5.22%

56 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) (13.22%) City Manager (1200) 641,497 605,720 833,172 1,275,081 1,156,816 1,165,742 (109,339) (8.58%) City Attorney (1500) 661,111 277,044 380,377 259,656 513,397 264,926 5,270 2.03% City Clerk (1300) 230,163 271,101 280,158 289,085 285,544 429,166 140,082 48.46% Committee & Commissions (1700) 338,879 258,403 201,958 222,258 197,614 268,292 46,034 20.71% American Rescue Plan (ARP) (1101) - - - - - - - -
Office Equipment (1490) 4,179 4,179 - - - - - -
Special Donations (0510) 25,000 - - - - - - -
Total General Administration $ 2,111,817 $ 1,738,244 $ 2,018,058 $ 2,519,073 $ 2,535,975 $ 2,538,580 $ 19,508 0.77% 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 7.38% Town Center (1480) 904,050 817,965 1,028,784 1,009,914 939,152 972,171 (37,744) (3.74%) Insurance (1510) 253,286 344,334 383,545 433,924 417,668 450,585 16,661 3.84% Community Services Grant (1600) 100,910 84,684 41,640 44,505 44,468 51,075 6,570 14.76% Total Finance & Administrative
Services $ 2,105,842 $ 2,217,016 $ 2,482,893 $ 2,616,943 $ 2,535,294 $ 2,685,767 $ 68,824 2.63% Public Safety
Public Safety (2100) $ 2,282,559 $ 3,567,900 $ 3,177,340 $ 3,890,069 $ 3,856,527 $ 4,515,001 $ 624,932 16.06% Animal Control (2150) 59,728 63,043 111,450 183,455 130,386 185,617 2,162 1.18% Citizens Public Safety Program (Cops)
(6100) 362,687 8,671 3,004 - - - - -
Total Public Safety $ 2,704,974 $ 3,639,613 $ 3,291,794 $ 4,073,524 $ 3,986,913 $ 4,700,618 $ 627,094 15.39% Community Development
Planning Administration (3100) $ 1,846,112 $ 1,989,910 $ 2,318,200 $ 2,282,684 $ 2,045,899 $ 3,159,375 $ 876,691 38.41% Planning Commission (3110) 92,440 142,861 89,149 145,587 133,129 137,097 (8,489) (5.83%) Code Enforcement Operations (3120) 173,771 152,386 167,325 294,582 383,243 324,742 30,159 10.24% Building Operations (3200) 1,500,754 1,908,769 1,857,519 2,196,953 2,536,342 2,167,379 (29,573) (1.35%) Total Community Development $ 3,613,076 $ 4,193,926 $ 4,432,193 $ 4,919,806 $ 5,098,613 $ 5,788,593 $ 868,788 17.66% Community Services
Community Services Administration
(1000) $ 815,623 $ 667,949 $ 785,906 $ 350,183 $ 330,211 $ 339,810 $ (10,373) (2.96%) Recreation Programs (4110) 33,095 31,580 33,524 18,163 15,611 19,443 1,280 7.05%

57 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
Special Events (4120) 166,817 279,533 249,357 288,006 285,529 447,962 159,956 55.54% Parks (5100) 198,541 193,129 233,844 333,007 308,119 391,111 58,105 17.45% Westwind Community Barn (5300) 280,894 309,386 340,467 463,006 399,783 514,483 51,478 11.12% Total Community Services$ 1,494,969$ 1,481,576$ 1,643,097$ 1,452,365$ 1,339,253$ 1,712,809$ 260,446 17.93% Public Works Engineering (3300)
$ 976,545$ 1,106,189$ 1,242,572$ 1,023,012$ 965,307$ 1,804,612$ 781,600 76.40% Sewer Operations (4800) 2,926,890 3,263,894 3,543,817 4,226,441 4,049,006 4,597,761 371,320 8.79% Storm Drain Operations (4500) 554,327 390,021 405,213 567,121 509,071 469,385 (97,736) (17.23%) Street Operations (4600) 664,043 633,394 663,789 909,336 758,977 771,159 (138,178) (15.20%) Pathway Operations (4740) 640,220 653,909 793,371 1,075,480 991,542 857,133 (218,348) (20.30%) Corporation Yard Operations (4300) 146,584 142,482 154,287 225,288 163,599 254,335 29,048 12.89% Vehicle Operations (4400) 146,230 131,657 112,169 178,926 106,577 168,176 (10,750) (6.01%) Total Public Works$ 6,054,838$ 6,321,546$ 6,915,217$ 8,205,604$ 7,544,078$ 8,922,561$ 716,9568.74% Capital Projects Sewer CIP (6900)
$-$-$-$ 906,620$ 611,223$ 917,248$ 10,628 1.17%
Capital Projects (6900) 4,034,878 3,561,485 7,993,278 3,149,310 4,198,041 4,136,821 987,511 31.36% Equipment Replacement (6910) 13,217 36,414 103,177 100,000 107,884 100,000 - - Total Capital Projects$ 4,048,095$ 3,597,899$ 8,096,455$ 4,155,930$ 4,917,148$ 5,154,069$ 998,139 24.02% Non-Departmental
NonDepartmental (0000)$ 118,698$ 107$ 412$ 6,620$ 6,620$-$ (6,620)- Total Non-Departmental$ 118,698$ 107$ 412$ 6,620$ 6,620$-$ (6,620)- Total Expenditures$ 22,252,308$ 23,189,927$ 28,880,119$ 27,949,865$ 27,963,895$ 31,502,996$ 3,553,135 12.71%

58 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) (0.95%) Contractual Services 722,789 305,211 329,718 446,500 586,552 392,556 (53,944) (12.08%) Professional Services 209,501 203,407 249,438 241,856 205,194 247,126 5,270 2.18% Operations 237,833 205,306 244,159 308,158 219,321 376,422 68,264 22.15% Capital Outlay Spending - - - - - - - -
Miscellaneous Expenditures 4,179 4,179 - 242,000 242,000 254,100 12,100 5.00% Total General Administration $ 2,111,817 $ 1,738,244 $ 2,018,058 $ 2,519,073 $ 2,535,975 $ 2,538,580 $ 19,508 0.77% Finance & Administrative Services
Personnel $ 605,762 $ 418,499 $ 685,257 $ 1,499,981 $ 1,207,029 $ 1,270,747 $ (229,234) (15.28%) Contractual Services 325,277 588,760 504,525 366,400 542,954 455,081 88,681 24.20% Professional Services 159,157 296,383 277,681 124,448 113,981 142,065 17,617 14.16% Operations 688,074 657,345 741,787 908,504 799,824 942,490 33,986 3.74% Capital Outlay Spending 29 1,239 - 130,638 1,045 10,000 (120,638) (92.35%) Miscellaneous Expenditures 130,638 130,638 130,638 - - - - - Allocations Out 1,374 1,450 1,640 13,468 13,468 20,075 6,607 49.06% Total Finance & Administrative
Services $ 1,910,310 $ 2,094,314 $ 2,341,527 $ 3,043,439 $ 2,678,300 $ 2,840,458 $ (202,981) (6.67%) Public Safety
Personnel $ 1,082 $ 1,405 $ 775 $ - $ - $ - $ - -
Contractual Services 2,514,498 3,457,694 3,070,401 3,524,766 3,447,329 4,108,740 583,974 16.57% Operations 15,053 11,351 19,315 13,324 4,150 13,324 - - Allocations Out 174,340 169,162 201,303 535,434 535,434 578,554 43,120 8.05% Total Public Safety $ 2,704,974 $ 3,639,613 $ 3,291,794 $ 4,073,524 $ 3,986,913 $ 4,700,618 $ 627,094 15.39% Community Development
Personnel $ 999,238 $ 1,257,747 $ 1,245,717 $ 1,591,163 $ 1,370,730 $ 1,934,363 $ 343,201 21.57% Contractual Services 1,074,197 1,275,085 1,268,582 1,271,373 1,615,165 1,245,623 (25,750) (2.03%) Professional Services 9,075 30,059 14,853 13,700 18,572 19,550 5,850 42.70% Operations 119,301 139,342 180,262 299,001 349,577 367,293 68,292 22.84% Allocations Out 1,411,266 1,491,693 1,722,779 1,744,569 1,744,569 2,221,764 477,195 27.35% Total Community Development $ 3,613,076 $ 4,193,926 $ 4,432,193 $ 4,919,806 $ 5,098,613 $ 5,788,593 $ 868,788 17.66% Community Services
Personnel $ 357,185 $ 348,427 $ 331,580 $ 301,881 $ 283,475 $ 350,639 $ 48,760 16.15% Contractual Services 214,463 227,593 258,757 337,520 280,402 345,700 8,180 2.42%

59 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) (7.41%) Operations 269,194 229,814 247,594 294,000 258,211 290,553 (3,447) (1.17%) Allocations Out 654,118 675,497 804,966 516,264 516,265 723,417 207,153 40.13% Total Community Services$ 1,494,969$ 1,481,576$ 1,643,097$ 1,452,365$ 1,339,253$ 1,712,809$ 260,446 17.93% Public Works
Personnel$ 1,500,909$ 1,602,504$ 1,791,218$ 1,921,239$ 1,737,527$ 2,122,442$ 201,203 10.47% Contractual Services 2,544,776 2,744,988 2,967,031 3,859,300 3,539,328 4,209,550 350,250 9.08% Professional Services 22,233 6,256 7,146 58,000 17,364 146,500 88,500 152.59% Operations 239,933 226,035 248,791 353,906 238,425 350,965 (2,941) (0.83%) Capital Outlay Spending 5,744 1,367 (100,077) 2,500 776 7,500 5,000 200.00% Miscellaneous Expenditures 301,451 298,233 339,804----- Allocations Out 1,439,791 1,442,164 1,661,306 2,010,659 2,010,659 2,085,603 74,944 3.73% Total Public Works$ 6,054,838$ 6,321,546$ 6,915,217$ 8,205,604$ 7,544,078$ 8,922,561$ 716,9568.74% Capital Projects
Personnel$-$-$ 4,780$-$ 1,218$-$--
Contractual Services 2,130,744 2,026,626 2,179,562 1,455,000 2,101,775- (1,455,000)- Professional Services 228,221 653,113 1,010,450- 1,176,755--- Operations 23,967 77,516 164,050- 75,826---
Capital Outlay Spending 1,528,763 711,896 4,571,440 2,694,310 1,554,954 5,069,046 2,374,736 88.14% Allocations Out 136,400 128,749 166,173 6,620 6,620 85,023 78,403 1,184.34% Total Capital Projects$ 4,048,095$ 3,597,899$ 8,096,455$ 4,155,930$ 4,917,148$ 5,154,069$ 998,139 24.02% Non-Departmental
Personnel$ (62,649)$-$-$-$-$-$--
Operations 12,000 107 412-----
Capital Outlay Spending 23,429-------
Allocations Out 145,917-- 6,620 6,620- (6,620)-
Total Non-Departmental$ 118,698$ 107$ 412$ 6,620$ 6,620$-$ (6,620)- Total Expenditures$ 22,056,776$ 23,067,225$ 28,738,753$ 28,376,361$ 28,106,901$ 31,657,687$ 3,281,330 11.56%

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
Cost Allocation
The Cost Allocation Plan (CAP) summarizes a comprehensive analysis completed for the Town to determine the appropriate allocation of costs from central service departments to the departments that provide services directly to the community. The primary objective is to allocate costs from departments that provide services internally to departments that conduct day-to-day operations necessary to serve the community. These internal services costs are those incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted without effort disproportionate to the results achieved.

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

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

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

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 61 Depart
ment Budgets
Allocations In
Departments
2026-27
Budget
Proposal
2027-28
Budget
Plan
City Attorney 264,926 270,474
City Clerk 429,167 397,486
City Council 410,454 418,118
City Manager 1,165,742 1,202,658
Committee & Commissions 268,292 275,487
Corporation Yard Operations 254,336 261,501
Finance & Administrative Services 1,211,937 1,216,057
Insurance 450,585 473,114
Town Benefit 154,691 162,426
Town Center 972,170 993,100
Vehicle Operations 168,176 174,288
Total 5,750,476 5,844,709
Allocations Out
Departments
2026-27
Budget
Proposal
2027-28
Budget
Plan
Public Safety 554,937 565,544
Animal Control 23,617 24,263
Planning Administration 1,383,292 1,399,440
Planning Commission 60,538 61,222
Code Enforcement Operations 39,564 40,614
Building Operations 738,370 755,232
Community Services Administration 251,898 257,478
Recreation Programs 8,843 9,034
Special Events 211,666 216,209
Parks 101,283 103,324
Westwind Community Barn 149,727 153,068
Engineering 825,680 829,442
Sewer CIP 17,248 17,252
Sewer Operations 483,251 492,963
Storm Drain Operations 75,061 76,669
Street Operations 311,315 318,420
Pathway Operations 390,296 400,214
Community Services Grant 20,075 20,235
NULL 36,040 36,163
Capital Projects 67,775 67,923
Total 5,750,476 5,844,710

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 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

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 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

64 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 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.

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)
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.

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)
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

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)
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 $ 410,454 $ 418,118 $ 183,734 81.04% Total Revenues $ 209,874 $ 321,796 $ 322,392 $ 226,720 $ 226,720 $ 410,454 $ 418,118 $ 183,734 81.04% 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

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 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 27.70% Contractual Services 37,829 114,671 59,286 150,000 125,337 120,000 120,000 (30,000) (20.00%) Professional Services 24,277 11,617 47,418 25,000 6,200 19,000 19,000 (6,000) (24.00%) Operations 62,681 91,832 112,283 192,700 158,434 137,000 137,000 (55,700) (28.91%) Total Expenditures $ 210,988 $ 321,796 $ 322,392 $ 472,993 $ 382,603 $ 410,454 $ 418,118 $ (62,539) (13.22%)

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)
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 0.10 0.70 - 0.10 - 0.10 - 1.00 City Manager - 1.00 - - - - - 1.00
Management Analyst 0.05 0.70 0.05 0.05 0.05 0.05 0.05 1.00 Total Full Time 0.15 2.40 0.05 0.15 0.05 0.15 0.05 3.00

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)
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.
.

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 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 $ 1,165,742 $ 1,202,658 $ 367,692 46.07% Total Revenues $ 450,298 $ 606,920 $ 817,920 $ 798,050 $ 798,050 $ 1,165,742 $ 1,202,658 $ 367,692 46.07% Expenditures
Personnel $ 436,114 $ 469,759 $ 688,932 $ 746,581 $ 750,576 $ 636,586 $ 660,797 $ (109,995) (14.73%) Contractual Services 179,760 75,253 68,143 206,500 122,250 192,556 192,556 (13,944) (6.75%) Professional Services 512 905 574 1,200 400 1,200 1,200 - - Operations 25,110 59,802 75,523 78,800 41,590 81,300 81,300 2,500 3.17% Miscellaneous
Expenditures - - - 242,000 242,000 254,100 266,805 12,100 5.00% Total Expenditures $ 641,497 $ 605,720 $ 833,172 $ 1,275,081 $ 1,156,816 $ 1,165,742 $ 1,202,657 $ (109,339) (8.58%) City Manager Expenditures
641,497 605,720
833,172
1,156,816 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

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)
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.

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 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 $ 264,926 $ 270,474 $ (24,134) (8.35%) Total Revenues $ 638,914 $ 277,044 $ 357,465 $ 289,060 $ 289,060 $ 264,926 $ 270,474 $ (24,134) (8.35%) Expenditures
Contractual Services $ 505,200 $ 115,286 $ 195,620 $ 90,000 $ 338,965 $ 80,000 $ 80,000 $ (10,000) (11.11%) Professional Services 155,911 161,758 184,757 169,656 174,432 184,926 190,474 15,270 9.00% Total Expenditures $ 661,111 $ 277,044 $ 380,377 $ 259,656 $ 513,397 $ 264,926 $ 270,474 $ 5,270 2.03% City Attorney Expenditures
661,111
277,044
380,377
513,397
259,656 264,926 270,474
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

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)
Mission:

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

Organization & Description:

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

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

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

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)
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 0.50 0.05 0.40 0.05 1.00 City Clerk 0.75 0.20 0.05 - 1.00
Total Full Time 1.25 0.25 0.45 0.05 2.00

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 77 Depart
ment Budgets
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

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 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 $ 429,167 $ 397,486 $ 113,997 36.17% Total Revenues $ 230,163 $ 271,101 $ 280,158 $ 315,170 $ 315,170 $ 429,167 $ 397,486 $ 113,997 36.17% Expenditures
Personnel $ 195,316 $ 227,465 $ 212,283 $ 236,981 $ 253,162 $ 259,598 $ 267,418 $ 22,618 9.54% Contractual Services - - 6,669 - - - - - -
Professional Services 17,126 21,229 12,281 25,000 18,692 21,000 21,000 (4,000) (16.00%) Operations 17,721 22,408 48,926 27,104 13,690 148,568 109,068 121,464 448.14% Total Expenditures $ 230,163 $ 271,101 $ 280,158 $ 289,085 $ 285,544 $ 429,166 $ 397,486 $ 140,082 48.46% 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

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)
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.

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)
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

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
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 $ - $ - $ - $ - $ - - Allocations In 336,521 258,403 201,818 260,852 260,852 268,292 275,487 7,440 2.85% Total Revenues $ 338,879 $ 262,235 $ 209,156 $ 260,852 $ 260,852 $ 268,292 $ 275,487 $ 7,440 2.85% Expenditures
Personnel $ 219,884 $ 219,241 $ 190,123 $ 191,704 $ 186,538 $ 237,738 $ 245,116 $ 46,034 24.01% Professional Services 11,674 7,898 4,408 21,000 5,469 21,000 21,000 - - Operations 107,321 31,265 7,427 9,554 5,607 9,554 9,554 - - Total Expenditures $ 338,879 $ 258,403 $ 201,958 $ 222,258 $ 197,614 $ 268,292 $ 275,670 $ 46,034 20.71% Committees and Commissions Expenditures
338,879
258,403
201,958 197,614 222,258 268,292 275,670
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

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)
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

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)
> 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 32 32
b. Timely year-end close Prior fiscal year September September September c. Clean audit opinion Prior fiscal year Yes Yes Yes
d. GFOA Financial Reporting Award Yes Yes

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 3,948
c. Number of payroll check issued 962 1001 1,112
d. Number of journal entries 330 360 371

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

5. Risk Management (See General Liability) -- -- --
Department Staffing
Finance & Administrative Services Department staffing is distributed to various divisions and programs as follows.

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)
Department Staffing

FINANCE &

ADMINISTRATIVE

SERVICES
TOTAL 2027 -

PROPOSED
Accounting Technician 1.00 1.00
Finance Director 1.00 1.00
Senior Accountant 2.00 2.00
Total Full Time 4.00 4.00
Department Goals and Accomplishments:
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

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)
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

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 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 $ 1,211,937 $ 1,216,057 $ 45,418 3.89% Total Revenues $ 847,596 $ 936,339 $ 1,028,247 $ 1,166,519 $ 1,166,519 $ 1,211,937 $ 1,216,057 $ 45,418 3.89% Expenditures
Personnel $ 673,921 $ 421,781 $ 680,942 $ 888,156 $ 910,643 $ 945,989 $ 951,814 $ 57,834 6.51% Contractual Services 75,119 359,732 232,330 58,400 75,458 82,800 100,357 24,400 41.78% Professional Services 58,176 149,919 65,033 57,448 50,040 59,295 61,191 1,847 3.22% Operations 40,380 38,601 50,620 124,596 97,865 123,852 102,695 (744) (0.60%) Total Expenditures $ 847,596 $ 970,033 $ 1,028,924 $ 1,128,600 $ 1,134,006 $ 1,211,936 $ 1,216,057 $ 83,337 7.38%

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)
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

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)
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.

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
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 $ - $ - $ - $ - $ - $ - -
Allocations In 249,114 328,190 383,545 351,159 351,159 450,585 473,114 99,426 28.31% Total Revenues $ 253,286 $ 349,858 $ 383,545 $ 351,159 $ 351,159 $ 450,585 $ 473,114 $ 99,426 28.31% Expenditures
Operations $ 253,286 $ 344,334 $ 383,545 $ 433,924 $ 417,668 $ 450,585 $ 473,114 $ 16,661 3.84% Total Expenditures $ 253,286 $ 344,334 $ 383,545 $ 433,924 $ 417,668 $ 450,585 $ 473,114 $ 16,661 3.84% 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

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)
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

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
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) -
Operations 99,535 83,234 40,000 31,000 31,000 31,000 31,000 - - Allocations Out 1,374 1,450 1,640 13,468 13,468 20,075 20,235 6,607 49.06% Total Expenditures $ 100,910 $ 84,684 $ 41,640 $ 44,505 $ 44,468 $ 51,075 $ 51,235 $ 6,570 14.76% Community Services Grant Expenditures
100,910 84,684
41,640 44,505 44,468 51,075 51,235
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

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 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 $ - $ - $ - $ - $ - - Allocations In 750,820 674,828 875,909 1,009,914 1,009,914 972,170 993,100 (37,744) (3.74%) Total Revenues $ 737,581 $ 685,770 $ 887,453 $ 1,009,914 $ 1,009,914 $ 972,170 $ 993,100 $ (37,744) (3.74%) Expenditures
Personnel $ 127,372 $ 119,420 $ 145,681 $ 185,292 $ 153,380 $ 170,067 $ 177,038 $ (15,226) (8.22%) Contractual Services 250,158 229,028 272,196 308,000 467,496 372,281 384,000 64,281 20.87% Professional Services 100,981 146,463 212,648 67,000 63,941 82,770 84,842 15,770 23.54% Operations 294,872 191,177 267,622 318,984 253,291 337,053 338,551 18,069 5.66% Capital Outlay
Spending 29 1,239 - 130,638 1,045 10,000 10,000 (120,638) (92.35%) Miscellaneous
Expenditures 130,638 130,638 130,638 - - - - - -
Total Expenditures $ 904,050 $ 817,965 $ 1,028,784 $ 1,009,914 $ 939,152 $ 972,171 $ 994,431 $ (37,744) (3.74%) Town Center Expenditures
904,050 817,965
1,028,784 1,009,914 939,152 972,171 994,431
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 93 Depart
ment Budgets
Public Safety (011-2100)
Public Safety
Public Safety (011-2100)
Mission:

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

Organization:

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

Program Summary & Major Services:

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

Program Summary:

Activity
Measurement
Method 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.

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)
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 $624,932, or 16% 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.

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
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 $ - $ - $ - $ - $ - $ - -
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 17.19% Operations - 11,351 19,315 13,324 4,150 13,324 13,324 - - Allocations Out 163,694 159,825 188,649 508,979 508,979 554,937 565,544 45,958 9.03% Total Expenditures $ 2,282,559 $ 3,567,900 $ 3,177,340 $ 3,890,069 $ 3,856,527 $ 4,515,001 $ 4,694,595 $ 624,932 16.06% Public Safety Expenditures
2,282,559
3,567,900 3,177,340
3,890,069 3,856,527
4,515,001 4,694,595
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

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 Animal Control (011-2150)
Budget Summary:

Animal Control is a division of Public Safety. The Animal Control budget increased by $2,162, or 1% 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 3.18% Allocations Out 8,839 9,328 10,546 26,455 26,455 23,617 24,263 (2,838) (10.73%) Total Expenditures $ 59,728 $ 63,043 $ 111,450 $ 183,455 $ 130,386 $ 185,617 $ 191,263 $ 2,162 1.18% Animal Control Expenditures
59,728 59,728 63,043 63,043
11111,450 1,450 130,386 130,386
183,455 183,455 185,617 185,617 191,263 191,263
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

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
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 $ - $ - $ - $ - $ - -
Contractual Services 344,745 9,209 120 - - - - - -
Operations 15,053 - - - - - - - -
Allocations Out 1,807 10 2,108 - - - - - -
Total Expenditures $ 362,687 $ 8,671 $ 3,004 $ - $ - $ - $ - $ - - 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

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)
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)

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 & 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

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)
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

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)
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 - - - - 1.00 - 1.00
Associate Planner 0.02 0.01 0.06 - 0.80 0.11 1.00
Building / Planning Technician 1.95 0.05 - - - - 2.00
Code Enforcement Officer - 1.00 - - - - 1.00
Community Dev. Director 0.25 0.10 0.05 - 0.55 0.05 1.00 Management Analyst 0.75 - - 0.50 0.75 - 2.00
Planning Permit Technician - - - - 1.00 - 1.00
Principal Planner - - - - 1.00 - 1.00
Senior Planner 0.07 0.06 0.06 - 0.70 0.11 1.00
Total Full Time 3.04 1.22 0.17 0.50 5.80 0.27 11.00

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)
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.

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)
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.

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 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 $ 1,485,754 $ 1,513,092 $ 852,081 134.47% Total Revenues $ 653,932 $ 627,950 $ 676,801 $ 633,674 $ 608,303 $ 1,485,754 $ 1,513,092 $ 852,081 134.47% Expenditures
Personnel $ 592,784 $ 626,482 $ 642,587 $ 940,479 $ 718,702 $ 1,104,455 $ 1,138,021 $ 163,976 17.44% Contractual Services 307,895 363,253 528,057 281,000 260,436 554,500 552,750 273,500 97.33% Professional Services 6,143 5,128 4,443 12,500 17,672 19,050 19,812 6,550 52.40% Operations 41,089 53,400 55,267 48,274 48,658 98,078 89,603 49,804 103.17% Allocations Out 898,201 941,648 1,087,847 1,000,431 1,000,431 1,383,292 1,399,440 382,861 38.27% Total Expenditures $ 1,846,112 $ 1,989,910 $ 2,318,200 $ 2,282,684 $ 2,045,899 $ 3,159,375 $ 3,199,627 $ 876,691 38.41% Planning Administration Expenditures
1,846,112 1,989,910 2,318,200 2,045,899 2,282,684
3,159,375 3,199,627
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

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
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 $8,490, 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) (6.79%) Professional Services 1,531 690 510 1,200 300 500 - (700) (58.33%) Operations 12,965 13,200 11,112 13,193 7,361 11,618 12,093 (1,575) (11.94%) Allocations Out 8,577 9,052 10,234 62,059 62,059 60,538 61,222 (1,521) (2.45%) Total Expenditures $ 92,440 $ 142,861 $ 89,149 $ 145,587 $ 133,129 $ 137,097 $ 138,284 $ (8,489) (5.83%) Planning Commission Expenditures
92,440
142,861
89,149
133,129 145,587 137,097 138,284
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

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 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 $30,160, 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 $ 183,781 466.93% Contractual Services 126,940 91,915 105,401 208,000 201,696 62,000 63,860 (146,000) (70.19%) Operations - 164 25 36 34 36 36 - 0.03%
Allocations Out 25,181 25,498 28,828 47,186 47,186 39,564 40,614 (7,622) (16.15%) Total Expenditures $ 173,771 $ 152,386 $ 167,325 $ 294,582 $ 383,243 $ 324,742 $ 333,385 $ 30,159 10.24% Code Enforcement Expenditures
173,771 152,386 167,325
383,243
294,582 324,742 333,385
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

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)
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.

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)
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

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)
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 $ 1,467,787 $ 1,511,821 $ (544,987) (27.08%) Charges for Services 5,265 10,330 5,410 149,752 21,375 286,618 295,215 136,866 91.39% Miscellaneous
Revenues 18,588 37,720 109,048 - 10,106 - - - -
Total Revenues $ 1,388,447 $ 1,883,291 $ 1,291,555 $ 2,162,526 $ 1,345,951 $ 1,754,404 $ 1,807,036 $ (408,121) (18.87%) Expenditures
Personnel $ 315,439 $ 476,537 $ 502,766 $ 542,189 $ 454,292 $ 542,325 $ 559,296 $ 137 0.03% Contractual Services 639,362 819,917 635,124 782,373 1,153,034 629,123 621,313 (153,250) (19.59%) Professional
Services 1,400 24,241 9,900 - 600 - - - -
Operations 65,247 72,579 113,858 237,498 293,524 257,561 267,863 20,063 8.45% Allocations Out 479,307 515,496 595,870 634,893 634,893 738,370 755,232 103,477 16.30% Total Expenditures $ 1,500,754 $ 1,908,769 $ 1,857,519 $ 2,196,953 $ 2,536,342 $ 2,167,379 $ 2,203,704 $ (29,573) (1.35%) 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 2,167,379 2,203,704
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

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 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.

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)
Community Services (Formerly Parks and Recreation)
Community Services Administration (011-1000)
Mission:

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

Description:

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

Program Summary & Major Services:

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

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

112
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)
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 0.15 0.15 0.50 0.20 1.00
Total Full Time 0.15 0.15 0.50 0.20 1.00

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)
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

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)
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 $10,373, or 3% 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.

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
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) (38.04%) Contractual Services - 850 20 32,000 18,380 22,000 22,000 (10,000) (31.25%) Professional Services 9 244 200 2,700 900 2,500 2,500 (200) (7.41%) Operations 36,990 27,336 27,556 29,260 24,367 30,470 31,300 1,210 4.14% Allocations Out 582,944 569,969 685,448 233,058 233,058 251,898 257,478 18,840 8.08% Total Expenditures $ 815,623 $ 667,949 $ 785,906 $ 350,183 $ 330,211 $ 339,810 $ 347,274 $ (10,373) (2.96%) Recreation Administration Expenditures
815,623
667,949 785,906
350,183 330,211 339,810 347,274
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

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 Recreation Programs (011-4110)
Budget Summary:

The Recreation Program budget increased by $1,280, or 7% 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 3.00% Total Revenues $ 9,481 $ 9,584 $ 12,233 $ 9,500 $ 11,611 $ 9,785 $ 10,079 $ 285 3.00% Expenditures
Contractual Services $ 6,763 $ 6,425 $ 6,060 $ 10,000 $ 7,275 $ 10,000 $ 10,000 $ - - Operations 3,664 1,234 419 650 824 600 650 (50) (7.69%) Allocations Out 22,667 23,921 27,045 7,513 7,513 8,843 9,034 1,330 17.70% Total Expenditures $ 33,095 $ 31,580 $ 33,524 $ 18,163 $ 15,611 $ 19,443 $ 19,684 $ 1,280 7.05% Recreation Programs Expenditures
33,095 31,580 33,524
15,611 18,163 19,443 19,684
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

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
Special Events (011-4120)
Budget Summary:

The Special Events budget increased by $159,956, or 56% 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 3.00% Total Revenues $ 26,052 $ 24,976 $ 18,720 $ 24,000 $ 21,107 $ 24,720 $ 25,462 $ 720 3.00% Expenditures
Personnel $ 13,398 $ 115,647 $ 95,279 $ 77,311 $ 84,312 $ 98,196 $ 101,359 $ 20,885 27.01% Operations 138,286 117,120 101,204 136,600 127,122 138,100 138,300 1,500 1.10% Allocations Out 15,132 46,766 52,874 74,095 74,095 211,666 216,209 137,571 185.67% Total Expenditures $ 166,817 $ 279,533 $ 249,357 $ 288,006 $ 285,529 $ 447,962 $ 455,868 $ 159,956 55.54% Special Events Expenditures
166,817 166,817
279,533 279,533 249,357 249,357 288,006 288,006 285,529 285,529 447,962 447,962 455,868 455,868
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

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 Parks (Renamed From Field Rentals) (011-5100)
Budget Summary:

The Parks Program budget increased by $58,104, or 17% 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 $ 54,660 $ 59,225 $ 61,002 $ 1,725 3.00% Total Revenues $ 50,212 $ 52,585 $ 68,070 $ 57,500 $ 54,660 $ 59,225 $ 61,002 $ 1,725 3.00% Expenditures
Personnel $ 93,504 $ 79,600 $ 84,759 $ 91,261 $ 76,204 $ 122,774 $ 127,776 $ 31,514 34.53% Contractual Services 25,632 46,816 57,761 70,740 69,012 79,000 82,300 8,260 11.68% Operations 67,611 54,267 77,252 83,564 75,461 88,054 89,054 4,490 5.37% Allocations Out 11,794 12,447 14,072 87,442 87,442 101,283 103,324 13,841 15.83% Total Expenditures $ 198,541 $ 193,129 $ 233,844 $ 333,007 $ 308,119 $ 391,111 $ 402,454 $ 58,105 17.45% Parks Expenditures
198,541 193,129 233,844
333,007 308,119
391,111 402,454
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

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)
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 $51,477, or 11% 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
280,894 309,386 340,467 399,783 463,006 514,483 512,527 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

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 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) - Charges for Services 248,595 233,545 242,925 215,000 256,252 262,000 265,000 47,000 21.86% Total Revenues $ 248,595 $ 233,545 $ 242,925 $ 220,000 $ 256,252 $ 262,000 $ 265,000 $ 42,000 19.09% Expenditures
Personnel $ 54,603 $ 83,630 $ 78,862 $ 80,144 $ 69,453 $ 96,728 $ 100,130 $ 16,584 20.69% Contractual Services 182,068 173,503 194,916 224,780 185,735 234,700 238,500 9,920 4.41% Operations 22,643 29,857 41,162 43,926 30,438 33,329 20,829 (10,597) (24.13%) Allocations Out 21,580 22,395 25,527 114,156 114,157 149,727 153,068 35,571 31.16% Total Expenditures $ 280,894 $ 309,386 $ 340,467 $ 463,006 $ 399,783 $ 514,483 $ 512,527 $ 51,478 11.12%

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
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

122
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
Department Staffing
Public Works Department staffing is distributed to various divisions and programs as follows.

123 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 0.20 - 1.15 0.05 0.15 0.20 0.10 0.10 - - 0.05 2.00 Engineering Technician - 0.05 0.50 0.05 0.05 0.10 0.10 0.05 0.10 - - 1.00 Maintenance Superintendent 0.05 0.05 0.10 0.05 0.20 0.05 0.10 0.15 0.10 0.10 0.05 1.00 Maintenance Worker I - 0.05 - 0.05 0.30 0.05 0.20 0.25 0.05 0.05 - 1.00 Maintenance Worker II - 0.05 - 0.10 0.25 0.05 0.10 0.25 0.05 0.12 0.03 1.00 Maintenance Worker III - 0.10 - 0.10 0.60 0.10 0.30 0.50 0.10 0.17 0.03 2.00 Project Manager 0.05 - 0.65 0.05 0.05 - 0.10 0.05 0.05 - - 1.00 Public Works Director / City
Engineer 0.10 0.05 0.30 0.05 0.10 0.15 0.05 0.05 0.05 0.05 0.05 1.00 Utilities Manager - 0.05 0.20 0.05 0.05 0.35 0.15 0.05 0.05 - 0.05 1.00 Total Full Time 0.40 0.40 2.90 0.55 1.75 1.05 1.20 1.45 0.55 0.49 0.26 11.00

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
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

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
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.

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)
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 $781,600, or 76% 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
1,804,612 1,832,392
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

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)
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 $ - $ - $ - $ - $ - $ 356,864 $ 364,056 $ 356,865 - Charges for Services 23,663 105,116 178,073 130,000 166,064 328,782 328,782 198,782 152.91% Total Revenues $ 23,663 $ 105,116 $ 178,073 $ 130,000 $ 166,064 $ 685,646 $ 692,838 $ 555,647 427.42% Expenditures
Personnel $ 299,216 $ 336,634 $ 330,138 $ 271,173 $ 240,872 $ 739,724 $ 762,541 $ 468,551 172.79% Contractual Services 21,785 89,269 142,907 107,000 101,404 138,000 138,000 31,000 28.97% Professional Services 15,098 1,753 - 16,500 12,200 19,500 19,500 3,000 18.18% Operations 46,790 41,897 34,759 83,793 65,509 76,708 77,908 (7,085) (8.46%) Capital Outlay
Spending - - 330 - 776 5,000 5,000 5,000 -
Allocations Out 593,655 636,636 734,437 544,546 544,546 825,680 829,442 281,134 51.63% Total Expenditures $ 976,545 $ 1,106,189 $ 1,242,572 $ 1,023,012 $ 965,307 $ 1,804,612 $ 1,832,392 $ 781,600 76.40%

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 Engineering (011-3300)
Los Altos Hills Sewer Manhole Replacement Project

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)
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 increased by $381,948, or 7% from the FY 2025-26 adopted budget. The increase in Contractual Services is primarily due to a rise in costs associated with the RWQTP. The increase in Professional Services is due to a Sewer Ordinance Update, Sewer Standard Detail update, and Multifamily sewer connection fee study.

0.05 FTE Management Analyst was also allocated to this program.

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 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) (6.70%) Charges for Services - (6,145) (6,691) - (1,973) - - - - Miscellaneous Revenues (1,946) (7,049) (2,293) - - - - - - 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 4.38% Sewer Connection Fees (97,754) (154,081) (182,857) (129,430) (126,631) (158,000) (158,000) 28,570 22.07% Total Revenues
$
(3,387,759)
$
(3,873,080)
$
(4,291,568)
$
(4,401,444)
$
(4,415,120)
$
(4,598,823)
$
(4,585,397) $ 197,379 4.48%
Expenditures
Personnel $ 353,709 $ 280,727 $ 297,862 $ 283,189 $ 281,763 $ 236,538 $ 244,550 $ (46,651) (16.47%) 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 9.02% Professional Services 14,919 13,100 50,382 25,500 104,720 112,000 25,500 86,500 339.22% Operations 14,823 14,787 18,964 18,794 17,021 19,972 19,972 1,178 6.27% Capital Outlay Spending (95,244) (47,931) (89,773) 900,000 499,206 900,000 900,000 - - Miscellaneous
Expenditures 260,918 260,918 276,183 - - - - - -
Allocations Out 289,555 280,939 325,087 469,578 469,578 500,499 510,215 30,921 6.58% Total Expenditures
$
2,926,890
$
3,264,000
$
3,544,229
$
5,133,061
$
4,660,229
$
5,515,009
$
5,556,237 $ 381,948 7.44%
Transfers In/(Out)
Transfers In
$
(1,179,650) $ (9,858) $ (532,635) $ (910,976) $ 622,299 $ 928,656 $ 929,003 $ 17,680 1.94% Transfers Out 1,170,350 - 522,183 900,000 611,223 917,248 917,252 17,248 1.92% Total Transfers In/(Out) $ (9,300) $ (9,858) $ (10,452) $ (10,976) $ (11,076) $ (11,408) $ (11,751) $ 34,928 3.94% Sewer Expenditures
499,206
3,022,134 3,311,931 3,634,002 4,161,023
900,000
900,000 900,000
4,233,061 4,615,009 4,656,237
Actual CIP Actual Ops Budget CIP Budget Ops
-1,200,000
0 1,200,000
2,400,000
3,600,000
4,800,000
6,000,000
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 131 Depart
ment Budgets
Storm Drain Operations (011-4500)
Budget Summary:

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

The budget decreased by $97,736, or 17% 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 $ 273,575 $ (3,213) (1.21%) Contractual Services 245,420 18,763 (2,811) 40,000 12,727 75,000 45,000 35,000 87.50% Professional Services 800 - 2,811 15,000 5,000 15,000 15,000 - - Operations 22,825 31,205 39,558 40,054 48,467 42,054 42,108 2,000 4.99% Allocations Out 132,859 120,769 138,365 206,584 206,584 75,061 76,669 (131,523) (63.67%) Total Expenditures $ 554,327 $ 390,021 $ 405,213 $ 567,121 $ 509,071 $ 469,385 $ 452,352 $ (97,736) (17.23%) Drainage Operation Expenditures
554,327
390,021 405,213
509,071 567,121
469,385 452,352
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

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 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 $138,177, or 15% 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 $ - $ - $ - $ - $ - - Miscellaneous
Revenues - 263 - - 974 - - - -
Total Revenues $ 652 $ 915 $ 2,080 $ - $ 974 $ - $ - $ - - Expenditures
Personnel $ 242,952 $ 266,353 $ 307,849 $ 396,411 $ 341,198 $ 303,736 $ 319,050 $ (92,676) (23.38%) Contractual Services 142,459 87,840 60,874 148,300 48,625 123,300 123,300 (25,000) (16.86%) Professional Services - 2,756 119 - 164 - - - -
Operations 25,487 32,423 12,784 24,723 29,088 32,808 32,808 8,085 32.70% Allocations Out 253,144 244,022 282,163 339,902 339,902 311,315 318,420 (28,587) (8.41%) Total Expenditures $ 664,043 $ 633,394 $ 663,789 $ 909,336 $ 758,977 $ 771,159 $ 793,578 $ (138,178) (15.20%) Street Operation Expenditures
664,043 633,394 663,789 758,977
909,336
771,159 793,578
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 133 Depart
ment Budgets
Pathway Operations (011-4740)
Budget Summary:

The Pathway Operations budget decreased by $218,347, or 20% 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 $ 390,901 $ (151,139) (28.86%) Contractual Services 81,431 59,826 76,221 85,000 56,230 80,000 80,000 (5,000) (5.88%) Professional Services - - 263 - - - - - -
Operations 5,246 2,638 3,112 10,162 6,847 14,326 14,326 4,164 40.98% Allocations Out 205,248 193,855 223,192 456,669 456,669 390,296 400,214 (66,373) (14.53%) Total Expenditures $ 640,220 $ 653,909 $ 793,371 $ 1,075,480 $ 991,542 $ 857,133 $ 885,441 $ (218,348) (20.30%) Pathway Operation Expenditures
640,220 653,909 793,371
991,542 1,075,480
857,133 885,441
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

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 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 $ 254,336 $ 261,501 $ 29,048 12.89% Total Revenues $ 146,797 $ 142,482 $ 142,075 $ 225,288 $ 225,288 $ 254,336 $ 261,501 $ 29,048 12.89% Expenditures
Personnel $ 59,514 $ 53,210 $ 69,296 $ 84,169 $ 78,329 $ 104,199 $ 108,513 $ 20,031 23.80% Contractual Services 12,035 28,259 24,133 38,000 31,555 42,000 43,000 4,000 10.53% Professional Services - 985 - 1,000 - - - (1,000) -
Operations 69,291 58,662 58,088 99,619 53,715 105,636 108,636 6,017 6.04% Capital Outlay
Spending 5,744 1,367 2,769 2,500 - 2,500 2,500 - -
Total Expenditures $ 146,584 $ 142,482 $ 154,287 $ 225,288 $ 163,599 $ 254,335 $ 262,649 $ 29,048 12.89% Corporation Yard Operation Expenditures
146,584 142,482 154,287 163,599
225,288 254,335 262,649
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

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 135 Depart
ment Budgets
Vehicle Operations (061-4400)
Budget Summary:

Vehicle Operations is an internal service fund division. Internal Service Fund expenditures are allocated to various departments and accounted for within “Allocations Out.” The Vehicle Operations budget 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 $ 168,176 $ 174,288 $ (10,750) (6.01%) Total Revenues $ 105,696 $ 94,342 $ 151,725 $ 178,926 $ 178,926 $ 168,176 $ 174,288 $ (10,750) (6.01%) Expenditures
Personnel $ 44,799 $ 48,707 $ 68,199 $ 97,165 $ 87,952 $ 103,465 $ 108,825 $ 6,300 6.48% Contractual Services 5,332 1,107 1,588 5,000 847 5,250 5,500 250 5.00% Operations 55,565 44,527 81,938 76,761 17,778 59,461 62,061 (17,300) (22.54%) Capital Outlay
Spending - - (103,177) - - - - - -
Miscellaneous
Expenditures 40,533 37,315 63,621 - - - - - -
Total Expenditures $ 146,230 $ 131,657 $ 112,169 $ 178,926 $ 106,577 $ 168,176 $ 176,386 $ (10,750) (6.01%) Vehicle Operation Expenditures
146,230 131,657 112,169 106,577
178,926 168,176 176,386
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

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
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.

138 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
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

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 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 $ 28,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 28,000 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 $ 1,997,407 $ 2,340,349 $ 249,000 $ 251,500 $ 164,050 $ 176,651 $ 5,178,957 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

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 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 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 150,000 Cell Tower Rental $ 0 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Westwind Community Barn Total $ 153,871 $ 50,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 503,871 Grand Total $ 5,547,374 $ 5,069,046 $ 2,904,000 $ 2,986,500 $ 2,919,050 $ 2,691,651 $ 22,117,621

143 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 $ 1,967,492 $ 2,483,905 $ 725,700 $ 677,300 $ 536,550 $ 373,051 $ 6,763,998 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 $ 5,547,374 $ 5,069,046 $ 2,904,000 $ 2,986,500 $ 2,919,050 $ 2,691,651 $ 22,117,621

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

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.

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

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.

146 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

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.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 147 Capital Improve
ment Plan Summary and Funding Sources

CORPORATION YARD IMPROVEMENTS
Department: Public Works
Program: Infrastructure
Project Number: 410234
Initial funding year: FY25
Planned start date: Summer 2024
Estimated completion date: Q2 FY2027/28
Project Description
In the summer of 2024, the Corporation Yard Master Plan Study was completed. This project would fund priority improvements identified in the study and other needs at the maintenance facility.

Project Status
One conex box installed for storage and replaced five (5) garage doors with motorized openers. Remaining work items for the project include removing the existing propane tank, purchasing one more conex box for storage, motorizing the second vehicular gate, sealing the yard asphalt, and adding EV charges.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Improvements $ 100,000 $ 46,487 $ 53,513 $ - $ 53,513
Total: $ 100,000 $ 46,487 $ 53,513 $ - $ 53,513
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 $ 53,513 $ - $ - $ - $ - $ 53,513
Total Funding: $ 53,513 $ - $ - $ - $ - $ - $ 53,513
Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Improvements $ 53,513 $ - $ - $ - $ - $ 53,513
Total Spending: $ 53,513 $ - $ - $ - $ - $ - $ 53,513
Recurring annual maintenance and operating costs, if applicable Maintenance and operational needs would be determined during design and construction phases.

148 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
EL MONTE FIRE STATION UNDERGROUNDING PROJECT (RULE 20A) Department: Public Works
Program: Infrastructure
Project Number: 410216
Initial funding year: FY20
Planned start date: October 2020
Estimated completion date: Q2 FY26
Project Description
The California Public Utilities Commission (CPUC) Rule 20A underground program allows cities and counties to utilize Rule 20A credits (funded by PG&E ratepayers) to finance utility undergrounding projects at locally designated underground districts. The Town has currently $4,656,261 in Rule 20A credit allocation.

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

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

Project Status
Council accepted the Rule 20A joint trench work by Phoenix Electric on December 9, 2025. All overhead utilities in the project area were undergrounded by January 2026. PG&E has notified the Town that $685,137 of Rule 20A credits are remaining for the Town. Staff will investigate potential options for the remaining Rule 20A credits.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
CIP/General Fund $ 300,000 $ 23,127 $ 276,873 $ 276,873 PG&E Rule 20A credits 4,656,261 3,971,124 685,137 685,137 AT&T Rule 32 1,586,923 1,586,923 - -
Comcast 1,361,982 1,361,982 - -
Total: $ 7,905,166 $ 6,943,156 $ 962,010 $ - $ 962,010
Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
PG&E Rule 20A $ 685,137 $ - $ - $ - $ - $ 685,137
CIP/ General Fund 276,873 276,873
Total Funding: $ 962,010 $ - $ - $ - $ - $ - $ 962,010
Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
PG&E Rule 20A expenditures $ 685,137 $ - $ - $ - $ - $ 685,137 CIP/ General Fund $ 276,873 $ 276,873
Total Spending: $ 962,010 $ - $ - $ - $ - $ - $ 962,010 Recurring annual maintenance and operating costs, if applicable No maintenance and operating cost applicable.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 149 Capital Improve
ment Plan Summary and Funding Sources

HERITAGE HOUSE UPGRADE
Department: Public Works
Program: Infrastructure
Project Number: 410224
Initial funding year: FY22
Planned start date: February 2023
Estimated completion date: Q4 FY26
Project Description
The renovation of the Heritage House interior aims to better accommodate various users, including the community, volunteers, and staff who utilize the space. The renovations will ensure protection of historically significant elements of the house while complying with ADA and Building Code provisions. Having already extended a data line from Town Hall to the Heritage House, this CIP will further extend that line throughout the house and provide Wi-Fi service with a direct Ethernet cable connection from the IT room.

In June 2024, the Town received $400,000 in Community Development Block Grant (CDBG) funding for the ADA improvements to the building.

Project Status
The project team encountered several delays during construction. The construction project was completed in May 2026. Staff will need to continue with CDBG reporting requirements to document how the facility is utilized.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Heritage House Upgrade $ 1,270,000 $ 1,092,771 $ 177,229 $ 177,229 Total: $ 1,270,000 $ 1,092,771 $ 177,229 $ - $ 177,229
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 $ 137,229 $ - $ - $ - $ - $ 137,229
CDBG 40,000 40,000
Total Funding: $ 177,229 $ - $ - $ - $ - $ - $ 177,229
Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Heritage House Upgrade $ 177,229 $ - $ - $ - $ - $ 177,229 Total Spending: $ 177,229 $ - $ - $ - $ - $ - $ 177,229 Recurring annual maintenance and operating costs, if applicable Additional costs for custodian service, routine maintenance, and utilities anticipated with more active use of the facility.

150 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

PURISSIMA PARK IMPROVEMENT PROGRAM (FIELD & FACILITY IMPROVEMENTS) Department: Public Works
Program: Infrastructure
Project Number: 410225
Initial funding year: FY22
Planned start date: Ongoing
Estimated completion date: Ongoing
Project Description
List of improvements at Purissima Park to be completed in phases:

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

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

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

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

Project Status
Fence for Baseball Fields 1 & 4 to be repaired/replaced in summer 2026. Parking lot seal coat and restriping planned for summer 2027.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Purissima Park Improvement $ 170,000 $ 87,699 $ 82,301 $ 82,301 Total: $ 170,000 $ 87,699 $ 82,301 $ - $ 82,301
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 $ 82,301 $ 30,000 $ 30,000 $ 30,000 $ - $ 172,301 Total Funding: $ 82,301 $ 30,000 $ 30,000 $ 30,000 $ - $ - $ 172,301 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Purissima Park Improvement $ 82,301 $ 30,000 $ 30,000 $ 30,000 $ - $ 172,301 Total Spending: $ 82,301 $ 30,000 $ 30,000 $ 30,000 $ - $ - $ 172,301 Recurring annual maintenance and operating costs, if applicable No maintenance and operating cost applicable.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 151 Capital Improve
ment Plan Summary and Funding Sources
Security System and Access Control Panel Upgrades
Department: City Manager’s Office
Program: Infrastructure
Project Number: 410235
Initial funding year: FY25
Planned start date: July 2026
Estimated completion date: Ongoing program
Project Description
The security camera systems at Town Hall, the Corporation Yard, and Westwind Community Barn have now all been successfully upgraded to a new Ubiquiti platform, replacing outdated infrastructure and improving overall coverage, reliability, and compliance. These upgrades were originally identified in the 2024–25 two-year City Council Work Plan and reaffirmed in the January 2025 update.

Phase 2 of the Town’s security system improvements will focus on upgrading alarm systems and access control panels across Town facilities. Staff is currently working with Technology Committee member George Lee to research and evaluate the most effective hardware and implementation options for this next phase.

Town Hall and the Corporation Yard will be the initial focus of Phase 2. Installation costs are estimated at approximately $8,000 per site, with total per-site project costs around $13,000. The upgraded systems will comply with all applicable state and federal requirements and will further advance the Town’s goal of integrating security infrastructure into a single, unified platform.

Consistent with prior implementation strategy, staff recommends proceeding with upgrades one site at a time, beginning with Town Hall in July 2026, followed by the Corporation Yard in August 2026.

Project Status
This project has not been started. Town Staff is working with Tech Committee memeber George Lee to review each site and receive reccomendations and guidance from George Lee on which equipment to move forward with.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Security Camera System $ 200,000 $ 10,000 $ 190,000 $ 162,000 $ 28,000 Total: $ 200,000 $ 10,000 $ 190,000 $ 162,000 $ 28,000
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 $ 28,000 $ - $ - $ - $ - $ - $ 28,000 Total Funding: $ 28,000 $ - $ - $ - $ - $ - $ 28,000
Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Security Camera System $ 28,000 $ - $ - $ - $ - $ - $ 28,000 Total Spending: $ 28,000 $ - $ - $ - $ - $ - $ 28,000
Recurring annual maintenance and operating costs, if applicable The camera system staff proposes include a service and licensing fee within the proposed budget.

152 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

MISCELLANEOUS TECHNOLOGY
Department: Administrative Services
Program: Infrastructure
Project Number: 410227-27
Initial funding year: FY23
Planned start date: July 2022
Estimated completion date: On Going
Project Description
The Miscellaneous Technology CIP for FY 26-27 is designed to improve the Town’s Technology for larger projects that are identified under the Town’s IT Master Plan and are not already included in the operating budget. Projects covered under this CIP will be managed by the City Manager’s Office. This CIP is designed to allow for projects to be completed on shorter timelines as our IT Services vendor can complete.

Project Status
The Town’s 3-year I.T. Strategic Plan continues to guide the use of this CIP, with several multi-year projects carrying costs across fiscal years. As noted, certain projects (such as wireless infrastructure expansion) include partial cost allocations from prior years into FY 2026–27, reflecting ongoing implementation. The Town is currently tracking within projected budget estimates for FY 2026–27, and while some project costs remain to be finalized pending additional scoping, overall expenditures are expected to align with planned allocations moving forward.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Technology $ 80,000 $ 61,390 $ 18,610 $ 18,610
Total: $ 80,000 $ 61,390 $ 18,610 $ - $ 18,610
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 $ 18,610 $ 60,000 $ 60,000 $ - $ - $ - $ 138,610 Total Funding: $ 18,610 $ 60,000 $ 60,000 $ - $ - $ - $ 138,610 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Technology $ 18,610 $ 60,000 $ 60,000 $ - $ - $ - $ 138,610 Total Spending: $ 18,610 $ 60,000 $ 60,000 $ - $ - $ - $ 138,610 Recurring annual maintenance and operating costs, if applicable N/A

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 153 Capital Improve
ment Plan Summary and Funding Sources

TRAFFIC SIGNAL IMPROVEMENTS
Department: Public Works
Program: Infrastructure
Project Number: 410233
Initial funding year: FY24
Planned start date: Fall 2023
Estimated completion date: Q4 FY27
Project Description
Aging traffic signal equipment at the three signalized intersections along El Monte Road at Voorhees Drive, Stonebrook Drive, and Foothill College require upgrades and modernization. Controller units at Voorhees Drive and Stonebrook Drive intersections require replacements. This project scope will include replacement of traffic signal controller units, installation of battery backup systems and detection cameras, and other updates needed to the Town’s three signalized intersections.

Project Status
In 2024, controller units at Voorhees Drive and Stonebrook Drive replaced and battery backup systems installed for all three signals. An electrical power shutoff for El Monte/Foothill College traffic signal installed in 2025.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Equipment Replacements $ 90,000 $ 44,039 $ 45,961 $ 45,961 Total: $ 90,000 $ 44,039 $ 45,961 $ - $ 45,961
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 $ 45,961 $ - $ - $ - $ - $ - $ 45,961 Total Funding: $ 45,961 $ - $ - $ - $ - $ - $ 45,961
Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Equipment Replacements $ 45,961 $ - $ - $ - $ - $ - $ 45,961 Total Spending: $ 45,961 $ - $ - $ - $ - $ - $ 45,961
Recurring annual maintenance and operating costs, if applicable New equipment will be maintained by the traffic signal maintenance contractor.

154 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

PARKS AND RECREATION BUILDING REPLACEMENT
Department: Public Works
Program: Infrastructure
Project Number: 410237
Initial funding year: FY26
Planned start date: Early 2026
Estimated completion date: Q4 FY29
Project Description
The City Council approved renovation of the Parks & Recreation building as an alternative to the Civic Center Improvements, which was a larger-scale project. The project would modernize the building and improve the space to provide a more functional workspace for Town employees. Once completed, the plan is to relocate the Administrative Services Department staff to the building. The project would also accommodate making necessary improvements at Town Hall to accommodate any relocation of staff and programs.

In January 2026, the Council selected a concept option to replace the existing Parks & Recreation building with a prefabricated structure, similar to how many accessory dwelling units (ADUs) are constructed. This approach presents opportunities to shorten the project timeline and expand the building to accommodate additional workspaces.

Project Status
In 2025, the Community Development Department plan room in Town Hall was cleared, the copy room relocated to the former plan room, and two new workstations installed in the copy room.

In March 2026, the Council adopted a resolution accepting donated architectural services from M Designs Architects (MDA) to prepare conceptual design plans establishing the building’s layout, size, and architectural character. MDA would also assist staff in obtaining a Conditional Use Permit through the Town’s planning process.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Design $ 200,000 $ 15,984 $ 184,016 $ 184,016
Total: $ 200,000 $ 15,984 $ 184,016 $ - $ 184,016
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 $ 184,016 $ 1,300,000 $ - $ - $ - $ - $ 1,484,016 Total Funding: $ 184,016 $ 1,300,000 $ - $ - $ - $ - $ 1,484,016 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Design $ 184,016 $ - $ - $ - $ - $ - $ 184,016
Construction $ - $ 1,300,000 $ - $ - $ - $ - $ 1,300,000 Total Spending: $ 184,016 $ 1,300,000 $ - $ - $ - $ - $ 1,484,016 Recurring annual maintenance and operating costs, if applicable Staff to continue maintenance of Parks & Recreation building.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 155 Capital Improve
ment Plan Summary and Funding Sources

TOWN HALL AND COUNCIL CHAMBERS HVAC IMPROVEMENTS (RENAMED FROM TOWN

FACILITIES ENERGY EFFICIENCY)
Department: Public Works
Program: Infrastructure
Project Number: 410236
Initial funding year: FY26
Planned start date: Q4 FY26
Estimated completion date: Q2 FY28
Project Description
This project will replace and upgrade aging heating, ventilation, and air conditioning (HVAC) equipment in Town Hall and Council Chambers with advanced, energy-efficient heat pump systems. A key goal of the project is to achieve full electrification of both facilities.

The funding for this projec is from Facility Replacement Reserves.

Project Status
Emergency replacement of HVAC (to mini split heat pump system) for Zone 1 in Town Hall in January 2026. Replacement of two failed gas furnace units in Council Chambers with heat pump units in April 2026. Replacement of the remaining HVAC systems (Zones 2 and 3) in Town Hall and replacement of the one last gas furnace unit in Council Chambers with heat pump systems planned by the end of FY27.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Design/Construction $ 220,000 $ - $ 220,000 $ 220,000
Total: $ 220,000 $ - $ 220,000 $ - $ 220,000
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 $ 220,000 $ 280,000 $ - $ - $ - $ - $ 500,000 Total Funding: $ 220,000 $ 280,000 $ - $ - $ - $ - $ 500,000 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Design/Construction $ 220,000 $ 280,000 $ - $ - $ - $ - $ 500,000 Total Spending: $ 220,000 $ 280,000 $ - $ - $ - $ - $ 500,000 Recurring annual maintenance and operating costs, if applicable Maintenance and operational needs would be determined during design and construction phases

156 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

HERITAGE HOUSE NATIVE GARDEN (NEW)
Department: Public Works
Program: Infrastructure
Project Number: TBD
Initial funding year: FY27
Planned start date: Spring 2027
Estimated completion date: Q4 FY29
Project Description
The Town’s Environmental Design and Protection Committee (EDPC) has developed a high-level concept plan (Attachment 3) for a native garden project adjacent to Heritage House. The project includes the installation of native vegetation, as well as swales and rain gardens to capture and manage stormwater. The site would be intended to serve as a demonstration project to educate and encourage the community to adopt native landscaping and water conservation practices.

In April 2026, the Town applied for the 2026 Valley Water Standard Grants Program funding for this project. The Town would be notified of the grant award in July 2026. If awarded, the conceptual plan would require further refinement through detailed design and technical analysis by a landscape architect and civil engineer. The preliminary project cost is estimated at approximately $456,000.

Project Status
If the Town is awarded the Valley Water grant funds, the funding agreement would need to be first executed, which is anticipated by the end of 2026. Staff will plan on hiring a landscape architectural design team in spring 2027 and start the design process in summer 2027.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Design/Construction $ - $ - $ - $ - $ -
Total: $ - $ - $ - $ - $ -
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 $ - $ 68,400 $ - $ - $ - $ - $ 68,400 Valley Water 387,600 387,600
Total Funding: $ - $ 456,000 $ - $ - $ - $ - $ 456,000
Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Design/Construction $ - $ 456,000 $ - $ - $ - $ - $ 456,000 Total Spending: $ - $ 456,000 $ - $ - $ - $ - $ 456,000 Recurring annual maintenance and operating costs, if applicable Once construction, landscape maintenance services would be required for the native garden site.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 157 Capital Improve
ment Plan Summary and Funding Sources

MAGDALENA ROAD PATHWAY
Department: Public Works
Program: Pathways
Project Number: 427914
Initial funding year: FY26
Planned start date: July 2025
Estimated completion date: Q2 FY27
Project Description
Magdalena Road was identified as a priority location for new roadside pathway for FY2025-26 by the Pathways Committee.

Approximately 1,480 linear feet of new pathway segments are proposed along Magdalena Road, adjacent to Camino Hermoso Drive on the northern side of the street. Currently, there are segments of unimproved shoulder, which are proposed to be improved with a Type 2B Roadside Path in accordance with the Town’s standards.

Project Status
In FY26, staff completed the design of the Magdalena Road Pathway Project. In May 2026, Council authorized reallocation of $57,000 (Pathway Fund) from Summerhill Pathway Project and $45,136 of TDA Article 3 fund from Miscellaneous Pathwas to Magdalena Road Pathway Project. The construction is anticipated to start in summer or fall 2026.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Design & Construction $ 402,703 $ 16,928 $ 385,775 $ - $ 385,775 Total: $ 402,703 $ 16,928 $ 385,775 $ - $ 385,775
Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Pathway Fund $ 340,639 $ - $ - $ - $ - $ - $ 340,639
TDA Article 3 45,136 38,697 - - - - 83,833
Total Funding: $ 385,775 $ 38,697 $ - $ - $ - $ - $ 424,472 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Design/Construction $ 385,775 $ 38,697 $ - $ - $ - $ - $ 424,472 Total Spending: $ 385,775 $ 38,697 $ - $ - $ - $ - $ 424,472 Recurring annual maintenance and operating costs, if applicable Pathways require annual maintenance. Maintenance costs for the new pathway shall be determined.

158 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

MAPLE LEAF - MIDDLE FORK LANE PATHWAY
Department: Public Works
Program: Pathways
Project Number: 427915
Initial funding year: FY26
Planned start date: July 2025
Estimated completion date: Q2 FY28
Project Description
The City Council, following a recommendation from the Pathways Committee, directed staff to add the Maple Leaf Court to Middle Fork Lane pathway segment to the Town’s Master Path Plan (MPP). This off-road segment is approximately 1,230 feet long and would traverse through rolling hills, existing vegetation, and a seasonal stream. An Initial Study would be required for a CEQA determination before this segment can be considered for inclusion in the MPP.

Changes to the MPP are considered General Plan amendments, as it is an integral component of the Pathway Element.

Project Status
A consultant was hired for the CEQA Initial Study in August 2025. CEQA determination is anticipated by June 2026.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Initial Study $ 100,000 $ 10,277 $ 89,723 $ - $ 89,723
Total: $ 100,000 $ 10,277 $ 89,723 $ - $ 89,723
Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Pathway Fund $ 89,723 $ 150,000 $ - $ - $ - $ - $ 239,723 Total Funding: $ 89,723 $ 150,000 $ - $ - $ - $ - $ 239,723 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Initial Study $ 89,723 $ - $ - $ - $ - $ - $ 89,723
Design/Construction $ - $ 150,000 $ - $ - $ - $ - $ 150,000 Total Spending: $ 89,723 $ 150,000 $ - $ - $ - $ - $ 239,723 Recurring annual maintenance and operating costs, if applicable Pathways require annual maintenance. Maintenance costs for the new pathway shall be determined.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 159 Capital Improve
ment Plan Summary and Funding Sources

MISCELLANEOUS PATHWAYS
Department: Public Works
Program: Pathways
Project Number: 427913-27
Initial funding year: FY22
Planned start date: Summer 2021
Estimated completion date: Ongoing
Project Description
The Miscellaneous Pathways Capital Improvement Project is designed to improve the Town’s pathways system by filling in gaps and repairing existing segments. The projects included in this CIP will be selected from a list that is maintained and regularly updated by the Pathways Committee. Once the list of eligible projects has been established, work would be initiated and completed by staff and/ or contractor. This CIP is intended to facilitate the completion of smaller pathway projects with shorter timelines as opportunities arise.

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

Project Status
In FY26, Altamont Road between Moody Road and Corbetta Lane was staked. In FY27, Altamont Road is planned to be constructed.

In May 2026, TDA fund of $45,136 was moved to the Magdalena Road Pathway Project.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
Pathway Fund
Remaining
Budget
Design/Construction $ 95,136 $ 4,345 $ 90,791 $ 45,136 $ 45,655 Total: $ 95,136 $ 4,345 $ 90,791 $ 45,136 $ 45,655
Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Pathway Fund $ 45,655 $ - $ 100,000 $ 100,000 $ 100,000 $ - $ 345,655 Total Funding: $ 45,655 $ - $ 100,000 $ 100,000 $ 100,000 $ - $ 345,655 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Design/Construction $ 45,655 $ - $ 100,000 $ 100,000 $ 100,000 $ - $ 345,655 Total Spending: $ 45,655 $ - $ 100,000 $ 100,000 $ 100,000 $ - $ 345,655 Recurring annual maintenance and operating costs, if applicable The projects in the CIP would be funded by a reoccurring annual contribution from the Pathway Fund, as determined by the City Council.

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

160 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

SUMMERHILL PATHWAY
Department: Public Works
Program: Pathways
Project Number: 427902
Initial funding year: FY16
Planned start date: June 2016
Estimated completion date: Q2 FY28
Project Description
The existing pedestrian route along Summerhill Avenue on the Town side (west side) iconsists of pathway segments and paved roadway shoulders within the County of Santa Clara public right-of-way. Easements are normally secured as part of property development process; therefore, some parcels along Summerhill Avenue lack necessary easements. Additionally, existing pathways along Summerhill Avenue alternate between sides of the roadway, forcing pedestrians to cross the busy County street.

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

Project Status
Working with the County for the encroachment permit. The latest comment from the County is to make the path ADA-compliant, unless technically infeasible. Furthermore, a pathway easement is still needed from one private property. Construction is now anticipated in summer 2027.

In May 2026, Council authorized reallocating $56,567 of Pathway Fund from Summerhill Pathway project to Magdalena Road Pathway project, which is planned for construction in summer or fall 2026.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
Pathway Fund
Remaining
Budget
Design/Construction $ 583,536 $ 132,640 $ 450,896 $ 450,896 Total: $ 583,536 $ 132,640 $ 450,896 $ - $ 450,896
Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Pathway Fund $ 450,896 $ - $ - $ - $ - $ - $ 450,896
Total Funding: $ 450,896 $ - $ - $ - $ - $ - $ 450,896
Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Design/Construction $ 450,896 $ - $ - $ - $ - $ - $ 450,896 Total Spending: $ 450,896 $ - $ - $ - $ - $ - $ 450,896 Recurring annual maintenance and operating costs, if applicable Pathways require annual maintenance. Maintenance costs for the new pathway shall be determined.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 161 Capital Improve
ment Plan Summary and Funding Sources

ANNUAL ROAD REHABILITATION PROGRAM
Department: Public Works
Program: Road Rehabilitation
Project Number: 467226-27
Initial funding year: FY27
Planned start date: Fall 2026
Estimated completion date: Q4 FY27
Project Description
The annual street resurfacing program is designed to maintain safe and functional Town streets. The project includes 6” AC deep lift patching, 2” asphalt concrete overlay, micro-surfacing, and all associated work. Street resurfacing includes corresponding drainage improvements. The street selections are based on recommendations from the Metropolitan Transportation Commission’s (MTC’s) Pavement Management Program (StreetSaver), utility coordination, and field inspections. Upon completion of the design phase, a list of streets and the type of work required are presented to the City Council for authorization to advertise for bid.

The FY27 project street list is from an updated five-year StreetSaver plan developed by the Town’s MTC consultant. After more in-depth site evaluations, project coordination, design, and cost analysis, the FY27 project street list may be further updated.

Project Status
The plans and specifications for the FY27 Pavement Rehabilitation project to be finalized by January 2027 for Council authorization to advertise for formal bid. Construction is anticipated to start in spring 2027 and be completed by that summer.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Annual Pavement Rehab $ 1,461,791 $ 15,894 $ 1,445,897 $ 1,445,897 Total: $ 1,461,791 $ 15,894 $ 1,445,897 $ - $ 1,445,897 Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Gas Tax $ 247,920 $ 254,356 $ 267,100 $ 280,500 $ 294,500 $ 309,200 $ 1,653,576 SB1 Funds 229,559 239,844 251,800 264,400 277,600 291,500 1,554,703 Vehicle Registration Fees SB 83 66,500 60,486 63,500 66,700 70,000 73,500 400,686 Drainage in-lieu 40,000 - - - - - 40,000
Street Encroachment Fees 107,100 200,000 210,000 220,500 231,500 243,100 1,212,200 Measure B 254,596 214,158 224,900 236,100 247,900 260,300 1,437,954 CIP/ General Fund 500,222 431,156 382,700 331,800 278,500 222,400 2,146,778 Total Funding: $ 1,445,897 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 8,445,897 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Annual Pavement Rehab $ 1,445,897 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 8,445,897 Total Spending: $ 1,445,897 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 8,445,897 Recurring annual maintenance and operating costs, if applicable No additional maintenance and operating cost. This program focuses on addressing system deficiencies to maintain operating cost at the current level.

162 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

LOCAL ROAD SAFETY PLAN
Department: Public Works
Program: Road Rehabilitation
Project Number: 467229
Initial funding year: FY26
Planned start date: Early 2026
Estimated completion date: Q2 FY29
Project Description
A Local Road Safety Plan (LRSP) is an initiative in the State’s Highway Safety Improvement Program (HSIP). Preparing a LRSP provides jurisdictions with an opportunity to address unique local roadway safety needs while contributing to the success of the Strategic Highway Safety Plan. The process of preparing an LRSP establishes a framework for systematically identifying and analyzing safety problems and recommending safety improvements. Additionally, preparing an LRSP facilitates the formation of local agency partnerships and collaboration, resulting in a prioritized list of improvements and actions that demonstrate a clear need and alignment with the Statewide plan. The LRSP offers a proactive approach to addressing safety concerns and showcases an agency’s commitment to improving roadway safety. An LRSP (or its equivalent) will be preferred or required for an agency to be eligible for future federal HSIP funds and other transporation projects.

Project Status
In December 2025, staff received news from the U.S. Department of Transportation that the Town has been approved for $180,000 in Safe Street and Roads for All (SS4A) grant to prepare a transportation safety plan. SS4A grants have a 20% local match requirement. A grant agreement is anticipated to be executed by late 2026. Staff plan on hiring a consultant for the LRSP by Q3 of FY27.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
LSRP $ 225,000 $ - $ 225,000 $ 225,000
Total: $ 225,000 $ - $ 225,000 $ - $ 225,000
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 $ 45,000 $ - $ - $ - $ - $ - $ 45,000 SS4A 180,000 - - - - - 180,000
Total Funding: $ 225,000 $ - $ - $ - $ - $ - $ 225,000
Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
LRSP $ 225,000 $ - $ - $ - $ - $ - $ 225,000
Total Spending: $ 225,000 $ - $ - $ - $ - $ - $ 225,000 Recurring annual maintenance and operating costs, if applicable N/A

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 163 Capital Improve
ment Plan Summary and Funding Sources

MEASURE B BIKE/PEDESTRIAN EDUCATION & ENCOURAGEMENT PROGRAM Department: Public Works
Program: Road Rehabilitation
Project Number: 467228
Initial funding year: FY25
Planned start date: Summer 2024
Estimated completion date: Ongoing
Project Description
Santa Clara County voters have approved 2016 Measure B, a 30-year, half-cent countywide sales tax to enhance transit, highways, expressways and active transportation (bicycles, pedestrians and complete streets). The measure passed by nearly 72%, the highest level of support for any Santa Clara County transportation tax. Collection of the tax began on April 1, 2017. As one of the approved Measure B programs, Bicycle and Pedestrian Education & Encouragement (E&E) Program provides annual funding to jurisdictions in the county for non-capital improvement projects to promote and educate communities to safely walk, bike, and resort to other multimodal and active transportation options. The E&E program funds are allocated by city population formula with a $10,000 annual minimum allocation per city, and the funds are distributed on a reimbursable basis. The Town is responsible for submitting an annual education & encouragement work program and annual progress report. The Town’s annual allocation of Measure B E&E funds since FY2017-18 has been between $10,000 to $20,000.

Project Status
On-going.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
E&E Program $ 90,853 $ 48,075 $ 42,777 $ 42,777
Total: $ 90,853 $ 48,075 $ 42,777 $ - $ 42,777
Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Measure B $ 42,777 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 92,777 Total Funding: $ 42,777 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 92,777 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
E&E Program $ 42,777 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 92,777 Total Spending: $ 42,777 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 92,777 Recurring annual maintenance and operating costs, if applicable Staff operating costs may be eligible for Measure B E&E fund reimbursement.

164 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

ROAD SAFETY AND TRAFFIC CALMING
Department: Public Works
Program: Infrastructure
Project Number: 467230
Initial funding year: FY26
Planned start date: Q1 FY26
Estimated completion date: Ongoing
Project Description
Road safety and traffic calming measures are intended to improve road and pathway safety and reduce vehicle speeds, especially in pedestrian-heavy areas. The goal is to create a safer environment for all users, including drivers, pedestrians, and cyclists. These measures may include signage and pavement marking improvements, intersection modifications, crosswalk enhancements, roadway narrowing, and vertical traffic calming devices such as speed humps, tables, among others. All treatments will be selected based on established traffic engineering practices and professional judgment to achieve the desired outcomes.

Project Status
In FY26, road safety and traffic calming improvements were implemented at seven curved roadway segments through enhanced signage and striping. Staff plan to continue similar efforts in FY27.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Design & Construction $ 60,000 $ - $ 60,000 $ - $ 60,000 Total: $ 60,000 $ - $ 60,000 $ - $ 60,000
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 $ 60,000 $ 60,000 $ - $ 60,000 $ - $ 60,000 $ 240,000 Total Funding: $ 60,000 $ 60,000 $ - $ 60,000 $ - $ 60,000 $ 240,000 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Design & Construction $ 60,000 $ 60,000 $ - $ 60,000 $ - $ 60,000 $ 240,000 Total Spending: $ 60,000 $ 60,000 $ - $ 60,000 $ - $ 60,000 $ 240,000 Recurring annual maintenance and operating costs, if applicable May depend on the roadway safety and traffic calming measures.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 165 Capital Improve
ment Plan Summary and Funding Sources

ANNUAL SANITARY SEWER REPLACEMENT AND REHAB
Department: Public Works
Program: Sewer
Project Number: 487918-27
Initial funding year: Ongoing
Planned start date: Ongoing
Estimated completion date: Ongoing
Project Description
The main objective of the annual sanitary sewer replacement and rehabilitation program is to repair and improve defective sewer pipes in the Town’s sanitary sewer system, ensuring the uninterrupted conveyance of wastewater to the Palo Alto Regional Water Quality Control Treatment Plant (RWQCTP) through the collection systems of the Cities of Palo Alto and Los Altos. The selection of the sewer segments is based on the review and analysis of the first cycle of CCTV inspections of the Town’s sewer pipes, along with follow-ups from the Town’s sewer maintenance and operation contractor, West Bay Sanitary District.

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

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

Project Status
Construction of the 2026 Sewer Rehabilitation Project to start in summer 2026 and be completed by late 2026.

Design of the 2027 Sewer Rehabilitation Project to start by fall 2026 to start construction by early summer 2027.

Due to rising capital costs from Palo Alto and Los Altos, and in order to maintain an annual budget of $900,000 for sewer capital projects, a new sewer rate study may be required in FY27.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
Sewer Fund
Remaining
Budget
Sewer Rehab CIP $ 900,000 $ 557,473 $ 342,527 $ 342,527 Total: $ 900,000 $ 557,473 $ 342,527 $ - $ 342,527
Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Sewer User Charges $ 342,527 $ 900,000 $ 900,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 5,142,527 Total Funding: $ 342,527 $ 900,000 $ 900,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 5,142,527 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Sewer Rehab CIP $ 342,527 $ 900,000 $ 900,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 5,142,527 Total Spending: $ 342,527 $ 900,000 $ 900,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 5,142,527 Recurring annual maintenance and operating costs, if applicable The maintenance and operating costs for the Town’s sanitary sewer system is included in the annual operating budget for the sewer program.

166 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
FY2026-28 Anticipated Sewer Capital Projects:

FY2026-28 Sewer Rehabilitation Projects $ 1,650,000.00
O’Keefe Pump Station - Control Panel Installation $ 60,000.00 O’Keefe Pump Station - Emergency Generator $ 10,000.00
Root foaming for sewer mains $ 80,000.00
Total $ 1,800,000.00

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 167 Capital Improve
ment Plan Summary and Funding Sources

WESTWIND COMMUNITY BARN IMPROVEMENTS
Department: Public Works
Program: Westwind Community Barn
Project Number: 437307-27
Initial funding year: Ongoing Program
Planned start date: Ongoing
Estimated completion date: Ongoing
Project Description
The annual Westwind Community Barn (WCB) facility improvements program is designed to improve facility deficiencies and meet the needs of Barn users. Each year, the Town and Concessionaire, Victoria Dye Equestrian (VDE), identify and prioritize potential improvements. The following projects were identified and prioritized:

1. Scarify, flip, and laser level arena bedding.

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

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

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

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

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

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

Project Status
In FY26, improvements to the Upper Arena and Lower Arena were completed, including regrading and reconstruction of the footing, replacement of the perimeter fencing, upgrades to the sprinkler system, and enhancements to site drainage.

In FY27, staff plan to continue installing footing grid systems in paddocks that currently lack them. These paddocks are prone to water ponding and muddy conditions. To date, grid systems have been installed in 13 paddocks, some of which require additional improvements.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Westwind Barn Improvement $ 324,274 $ 170,403 $ 153,871 $ 153,871 Total: 324,274 170,403 153,871 - 153,871

168 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
Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Cell Tower Rental $ - $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Westwind Barn Capital 103,871 - - - - - 103,871
CIP/ General Fund 50,000 - 25,000 25,000 25,000 25,000 150,000 Total Funding: $ 153,871 $ 50,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 503,871 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Westwind Barn Improvement $ 153,871 $ 50,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 503,871 Total Spending: 153,871 50,000 75,000 75,000 75,000 75,000 503,871 Recurring annual maintenance and operating costs, if applicable These projects are part of an ongoing maintenance program. Minor maintenance is the responsibility of VDE. Repairs above $500 are the Town’s responsibility.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 169 Capital Improve
ment Plan Summary and Funding Sources

MATADERO CREEK EROSION
Department: Public Works
Program: Storm Drain
Project Number: 467209
Initial funding year: FY12
Planned start date: Ongoing
Estimated completion date: Q2 FY26; Mitigation monitoring for 10 years Project Description
The project aims to repair erosion along the edge of Page Mill Road between Baleri Ranch Road and Berry Hill Court at Matadero Creek.

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

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

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

Project Status
On- and off-site mitigation work completed. Council accepted the construction work for the creek restoration as complete in December 2025.

Maintenance and monitoring of the on- and off-site mitigations required for ten years from the completion of the restoration project at a cost of approximately $40,000 per year.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Matadero Creek Erosion $ 1,784,290 $ 1,249,937 $ 534,353 $ 500,000 $ 34,353 Total: $ 1,784,290 $ 1,249,937 $ 534,353 $ 500,000 $ 34,353 Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Drainage in-lieu $ 34,353 $ 50,000 $ 50,000 $ 30,000 $ 50,000 $ 30,000 $ 244,353 Total Funding: $ 34,353 $ 50,000 $ 50,000 $ 30,000 $ 50,000 $ 30,000 $ 244,353 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Matadero Creek Erosion Mitigation -
Maintenance & Monitor $ 34,353 $ 50,000 $ 50,000 $ 30,000 $ 50,000 $ 30,000 $ 244,353 Total Spending: $ 34,353 $ 50,000 $ 50,000 $ 30,000 $ 50,000 $ 30,000 $ 244,353 Recurring annual maintenance and operating costs, if applicable Maintenance and monitoring costs for on- and off-site mitigations factored in.

170 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

STORM DRAIN IMPROVEMENTS
Department: Public Works
Program: Storm Drain
Project Number: 457202
Initial funding year: FY24
Planned start date: Summer 2023
Estimated completion date: Ongoing
Project Description
Address deficiencies and replace aging storm drain pipes to minimize future failures, flooding, ground erosion, and damage to roadways caused by storm events. Use video inspections to assess the condition of aging corrugated metal storm drain pipes that are prone to failure throughout the Town and schedule replacements as part of the project. As part of this effort,the, Town’s storm drain system will be entered into the Geographic Information System (GIS) application to support better asset management. Staff will continue to access and identify annual needs for storm drainage improvements.

Project Status
In progress.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
Storm Drain
Fund
Remaining
Budget
Design/Construction $ 340,000 $ 262,243 $ 77,757 $ 77,757 Total: $ 340,000 $ 262,243 $ 77,757 $ - $ 77,757
Project Funding Estimate
Funding Source
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Drainage in-lieu $ 77,757 $ 30,000 $ - $ - $ - $ 107,757 Total Funding: $ 77,757 $ 30,000 $ - $ - $ - $ - $ 107,757 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Design/Construction $ 77,757 $ 30,000 $ - $ - $ - $ 107,757 Total Spending: $ 77,757 $ 30,000 $ - $ - $ - $ - $ 107,757 Recurring annual maintenance and operating costs, if applicable Staff continues to maintain Town storm drain facilities throughout the year.

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 171 Capital Improve
ment Plan Summary and Funding Sources

VEHICLE AND EQUIPMENT REPLACEMENT (NEW)
Department: Public Works
Program: Vehicle and Equipment
Project Number: 410106-27
Initial funding year: FY26
Planned start date: Summer 2025
Estimated completion date: Ongoing
Project Description
One of the recommended strategies in the Town’s Climate Action Plan (last updated in October 2021) is the Green Fleet Program to consider and prioritize EVs for the Town fleet when possible to reduce greenhouse gas (GHG) emissions. The other recommended strategy is to transition Town fleet to renewable diesel to further cut emissions. Many of the Town’s maintenance vehicles and equipment may soon require major services and should be considered for replacement, such as the 2003 Dodge Dakota, 2008 Ford Ranger, 2010 John Deere tractor, 2010 John Deere backhoe, and 2009 Cariton Chipper. The Vehicle and Equipment Replacement Policy recommends replacements at 13 to 15 years of service, and many of Town’s vehicles and equipment have been in operations longer.

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

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

Project Status
Procured the replacement of existing chipper in FY26.

Town received $155,736 in SVCE grant in FY26 to be used to purchase two EV trucks for the maintenance services. One purchased in FY26 and second to be procured in FY27.

Prior Budget and Actual
Project Summary
Project
Budget
Spending Thru
March 2026
Available
Budget
Return to
General Fund
Remaining
Budget
Vehicle and Equipment $ 255,736 $ - $ 255,736 $ 255,736 Total: $ 255,736 $ - $ 255,736 $ - $ 255,736

172 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
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 $ 100,000 $ 100,000 $ 120,000 $ 120,000 $ 120,000 $ 560,000 Silicon Valley Clean Energy - SVCE 155,736 155,736
Total Funding: $ 255,736 $ 100,000 $ 120,000 $ 120,000 $ 120,000 $ - $ 715,736 Project Spending Estimate
Project Spending
Remaining
Budget
2026-27
Planned
2027-28
Planned
2028-29
Planned
2029-30
Planned
2030-31
Planned
Project
Total
Vehicle and Equipment $ 100,000 $ 100,000 $ 120,000 $ 120,000 $ 120,000 $ 560,000 SVCE Grant for Two (2) EV Trucks $ 155,736 $ 155,736
Total Spending: $ 255,736 $ 100,000 $ 120,000 $ 120,000 $ 120,000 $ - $ 715,736 Recurring annual maintenance and operating costs, if applicable There will be routine vehicle and equipment maintenance anticpated. The maintenance costs will be lower with new vehicles/equipment and ZEV’s.

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Town Policies

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 175 Town Policies
Financial Policy
Adopted by the City Council on June 26, 2025
Resolution XX-XX
This document establishes policies and practices for the Town of Los Altos Hills that provides financial information and manages its financial resources. As well as establishing and maintaining prudent fund balance levels, financial reporting, and investment policies that are in accordance with State Law. Formally adopted financial policies assist elected officials and staff in saving time and energy in making financial decisions, promoting public confidence, and the development of sound fiscal management practices.

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

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

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

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

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

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

176 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Town Policies
Financial records
The collection of receipts is recorded and reviewed by Town staff before being deposited in the Town’s bank accounts. Disbursements are prepared by the responsible Town staff, reviewed by Town finance staff, and signed by two independent check signers who are either senior employees or Council members. Bank reconciliations are prepared monthly. Other records are maintained and independently backed up offsite.

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

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

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

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

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

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 177 Town Policies
> Maintain financial reporting in compliance with current governmental accounting standards. > Promote and implement a relevant and strong system of internal financial controls to manage significant risks and monitor the reliability and integrity of financial and operating reporting. > Promote constructive and proactive financial decision making. > Integrate long-term operating and capital resources planning. > Allow for uncertainties and maintain a posture of financial flexibility. > Develop programs in a manner that supports the City’s long-term ability to cover costs and provide the level and quality of service required by its citizens.
> Managing debt responsibility.
> Establish and maintain investment policies in accordance with State law.

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

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

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

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

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

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

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

178 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Town Policies
> Encumbrances or legally binding commitments (e.g., purchase orders) issued during the fiscal year but not completed by year-end
> Capital improvement projects or multi-year grant programs with approved life cycles extending beyond one fiscal year
For contracts that remain incomplete at fiscal year-end, the remaining balance must be reappropriated in the subsequent budget cycle.

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

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

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

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

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

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

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

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

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

Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan 179 Town Policies
Capital Improvement Plan
The Town will develop and maintain a five-year Capital Improvement Plan (CIP) to be updated annually in conjunction with the operating budget. The CIP should reflect the current and changing needs of the community as well as enhance the community’s quality of life.

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

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

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

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

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

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

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

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

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

180 Town of Los Altos Hills | FY 2026-2027 & 2027-2028 Operating Budget and FY 2027-2031 Five Year Capital Improvement Plan Town Policies
exceed the approved budget. With the exception of public works projects, the acquisition of all other capital assets may be managed by the Administrative Services Director under the direction of the City Manager.

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

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

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

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

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