CityCouncil_SpecialSession_Attachments_05_10_2022 — Milpitas City Council, May 10, 2022 (part 1 of 2)

SPECIAL MEETING OF THE

MILPITAS CITY COUNCIL

May 10, 2022 Milpitas City Council Agenda Page 1

AG E N D A
TUESDAY, MAY 10, 2022
CITY COUNCIL CHAMBERS, 455 E CALAVERAS BLVD, MILPITAS, CA 5:30 PM
For assistance in the following languages, you may call:

Đối với Việt Nam, gọi 408-586-2400
Para sa Tagalog, tumawag sa 408-586-3051
Para español, llame 408-586-3072

CITY OF MILPITAS - NOTICE OF SPECIAL MEETING

NOTICE IS HEREBY GIVEN that a Special Meeting of the Milpitas City Council will be held at 5:30 p.m. on May 10, 2022, in the City Council Chamber at City Hall, 455 E. Calaveras Blvd., Milpitas and via teleconference/Zoom webinar.

You may watch the Council meeting without providing public comment by accessing it via links here.

Meeting shall be livestreamed - Go to:

Facebook: https://www.facebook.com/CityofMilpitas/
YouTube: https://www.ci.milpitas.ca.gov/youtube
Web Streaming: https://www.ci.milpitas.ca.gov/webstreaming

PUBLIC COMMENT INSTRUCTIONS
Oral public comments may be provided live during the City Council meeting by first registering for the zoom meeting in advance by providing email address (not disclosed) and a name. To minimize technical difficulties, please make sure that you have the latest version of Zoom Meetings. Here is the link to register for this meeting only:
https://ci-milpitas-ca-gov.zoom.us/webinar/register/WN_EyCgUUaXQoqkL0kjWWRXvA

A link will be sent to you to join the City Council meeting in order to give your comments. All registered meeting attendees who wish to speak must click on the “raise hand” icon when the Mayor calls for public comments. If participating by calling in on your phone, dial *9 to use the “raise hand” feature, and when you are called upon, hit *6 to unmute your phone. Your phone number will be displayed in the live meeting. The Mayor or staff will call the speakers to begin.

All comments provided shall be limited to three minutes or less as determined by the Mayor. All members of the public will be limited to one comment per agenda item, and one comment for non-agenda items. online written comment form previously used is no longer available for public comment.

MILPITAS CITY COUNCIL CODE OF CONDUCT
 Be respectful and courteous (words, tone, and body language).  Model civility.
 Avoid surprises.
 Praise publicly and criticize privately.
 Focus on the issue, not the person.
 Refrain from using electronic devices while on the Council dais.  Disclose conflicts of interest and affiliations related to agenda items.  Separate governing from campaigning.
 The Council speaks with one voice after making policy on issues.  Respect the line between policy and administration.
 Council will hold one another accountable to comply with this Code of Conduct.

1 May 10, 2022 Milpitas City Council Agenda Page 2

CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk

PLEDGE OF ALLEGIANCE

PUBLIC FORUM
Those in the audience and via Zoom are invited to address City Council on any subject not on tonight’s agenda. In-person speakers wishing to address the Council are requested, but not required to complete a Speaker Card and submit it to the Mayor. In-person speakers will then be asked to come up to the podium and state their name for the record. Those interested in speaking via Zoom may do so by following the instructions on page one (1) of the agenda. Comments may be limited to three (3) minutes or less at the Mayor’s discretion. As an item not listed on the agenda, no response is required from City staff or the Council and no action can be taken. The City Council may instruct the City Manager to place the item on a future meeting agenda.

ANNOUNCEMENT OF CONFLICT OF INTEREST

READING OF THE CITY COUNCIL CODE OF CONDUCT

APPROVAL OF AGENDA

AGENDA ITEMS

1. Receive Presentation on the FY 2022-23 Proposed City of Milpitas Operating Budget and Provide Feedback (Staff Contact: Lauren Lai, Finance Director, 408-586-3111)

Recommendation: Receive a presentation on the FY 2022-23 Proposed City of Milpitas Operating Budget and provide feedback to staff.

ADJOURNMENT

KNOW YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE
Government’s duty is to serve the public, reaching its decisions in full view of the public. Commissions and other City agencies exist to conduct the people’s business. This ordinance assures that delib erations are conducted before the people and City operations are open to the people’s review. For more information on your rights under the Open Government Ordinance or to report a violation, contact the City Attorney’s office at Milpitas City Hall, 455 E. Calaveras Blvd., Milpitas, CA 95035 e-mail:[email protected] / Phone: 408-586-3040

The Open Government Ordinance is codified in the Milpitas Municipal Code as Title I Chapter 310 and is available online at the City’s website www.ci.milpitas.ca.gov by selecting the Milpitas Municipal Code link.

Materials related to an item on this agenda submitted to the City Council after initial distribut ion of the agenda packet are available for public inspection at the City Clerk’s office at Milpitas City Hall, 3rd floor 455 E. Calaveras Blvd., Milpitas and on City website. City Council agendas and related materials can be viewed online: www.ci.milpitas.ca.gov/government/council/agenda_minutes.asp (select meeting date)

APPLY TO SERVE ON A CITY COMMISSION
Commission application forms are available online at www.ci.milpitas.ca.gov or at Milpitas City Hall.

Contact the City Clerk’s Office at 408-586-3001 for more information.

If you need assistance, per the Americans with Disabilities Act, for any City of Milpit as public meeting, please call the City Clerk at 408-586-3001 or send an e-mail to [email protected] prior to the meeting. You may request a larger font agenda.
2 CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Receive Presentation on the FY 2022-23 Proposed City of Milpitas Operating Budget and Provide Feedback (Staff Contact: Lauren Lai, Finance Director, 408-586-3111) Category: Leadership and Support Services

Meeting Date: 5/10/2022
Recommendation: Receive a presentation on the FY 2022-23 Proposed City of Milpitas Operating Budget and provide feedback to staff.

Background:

This agenda report is supplemental to the FY2022-23 Proposed Operating Budget (Proposed Budget) and City Manager transmittal letter. It also provides updates on council referrals and summarizes the changes to the fiscal policies and budget guidelines. Modifications to the Milpitas American Rescue Plan Act (ARPA) Investment Plan were most recently discussed on March 15, reflected accordingly in an ARPA section of the Proposed Budget and will be reported periodically thereafter to Council.

At the FY 2022-23 Preliminary Budget Study Session held on January 25, 2022, the City Council received the preliminary ten-year General Fund Financial Forecast, the budget community engagement plan, reports on accomplishments, workplans and operational challenges by City Service Areas, and request for prioritization of additional workplan items. Moreover, in August 2021, January 2022, and May 2022, City Council discussed additional workplan items to be potentially incorporated into the development of FY 2022-23 budget. This report provides an update on the Council referrals of that workplan.

On April 29, the City Manager released a balanced FY2022-23 Proposed Operating Budget, available on the City’s website and attached here, consistent with his duties as City Manager as outlined in the City’s Municipal Code. The Proposed FY 2022-23 Budget in the amount of $207.7 million transitions the City from the severe impacts caused by the Pandemic to a recovery mode while being cautiously optimistic. With the Pandemic significantly behind us after two years, we are optimistic about the future but remain tempered by possible economic impacts that may stem from the unfortunate war in Europe, rising interest rates, rising inflation rates, historic fuel prices and continued supply chain challenges. This budget includes enhanced service levels especially in public safety, public works and infrastructure, and modest investments in internal support departments as well as contract services and part-time services to support housing, long term planning, and community services. This is a balanced budget that maintains Council approved reserves and leverages funding from the ARPA to support impacted residents and businesses in our community. We continue transitioning with incremental and measured strategies to maximize City resources and optimize services to the community.

In comparison to the last pre-pandemic revenue for FY 2018-19, the City’s General Fund incurred cumulative revenue losses of approximately $30 million over FY2019-20 and FY2020-21. Despite the revenue loss, the Council’s decisive actions and strategies which included Measure F, a ¼ cent local sales tax measure with an eight-year sunset, defunding 20 capital improvement projects ($5.7 million), use of reserves, interfund transfers, deferred maintenance, and defunding of positions (23.75), as well as significant employee wage concessions, guided the City through this financial downturn. This collective effort helped the City navigate the 3 Item # 1.

Pandemic with minimal service level reductions while maintaining fiscal stability. As the City recovers, the City’s General Fund is projected to receive higher revenues, provide for restorations and/or measured increases of services, and generate modest annual surpluses in the coming years.

During the finalization of the Proposed Budget, the Measure F Oversight Committee held its meeting on March 16, which is summarized in this report. In addition to the Proposed Budget, Staff also recommends updates to the fiscal policy and budget guidelines.

Analysis:

This staff report provides supplemental information related to the FY 2022-23 Proposed Budget such as a summary of recommended changes to the City’s fiscal policies and budget guidelines including attached redline versions of the documents, updates to the Council referrals, written responses of the online Town Hall community survey, updates on Measure F Committee, and next steps in the FY 2022-23 budget process.

Fiscal Policies and Budget Guidelines Recommendations
As part of the annual budget process, staff reviews the Fiscal Policies and Budget Guidelines. These policies and guidelines set the fiscal framework for the annual budget process and long-term financial decisions. Below please find a summary of recommended changes to the Fiscal Policies and Budget Guidelines. Included in the Council’s agenda packet are clean and red line versions of the recommended changes.

Recommended Changes to Fiscal Policies
The City’s Fiscal Policies are broken down into General Financial Goals; Operating Budget, Revenue, and Expenditure Policies; Utility Rates and Fees; Capital Budget Policies; Debt, Reserve, and Investment Policies; and Accounting, Auditing, and Financial Reporting Policies. It is important to note that the City Council also adopted separate debt and investment policies consistent with State law.

This balanced proposed budget remains focused on sound City fiscal policies and preserving existing reserves. The proposed changes are minor and provide some flexibility and emphasis to facility, infrastructure and technology needs. The revision to the PERS Stabilization Reserve inserts a confirmation from the City’s actuary for additional contribution from any savings and removes the adjustment for additional costs. The revision to the PERS Stabilization Reserve establishes a mechanism using an annual actuarial analysis to determine adequate funding of the reserve consistent with previous Council direction.

Other minor changes pertain to the waterfall of operating surplus wherein the PERS Rate Stabilization Reserve would be dependent upon actuary confirmation and the subsequent allocations will be emphasizing facility, infrastructure, and technology.

Changes to Budget Guidelines
Through adoption of this budget, the City Council also approves the Budget Guidelines. The Budget Guidelines set forth the Basis of Budgeting; Budget Calendar requirements; form and content of the City Manager's Proposed Budget; adoption of the Budget by June 30; the City Manager’s budget authority; requirement that budget amendments be approved by the City Council; budget transfers and modification procedures; automatic adjustments and re-appropriations; budget monitoring and reporting; and reserve requirements for all funds.

The changes to the Budget Guidelines memorialize the Council direction on August 9, 2021, wherein for ARPA funding, the City Council delegated authority to the City Manager including appropriation and contract approval authority up to the approved amount for each program approved by Council, once compliance with ARPA procurement, contracting and reporting requirements. For budget monitoring and reporting, it includes a quarterly ARPA report for program updates to the City Council.

Council referrals
In August 2021, January 2022 and May 2022, Council reviewed various Council agenda item requests (“Referrals”). Below is a listing of Referrals that were prioritized from these study sessions or referred to the operating budget process through other Council action and require funding. The listing below provides a short description of the referrals, the one-time funding needed, and a potential funding source. Similar to the referrals discussed and advanced through the capital budget process, staff is seeking Council direction which 4 Item # 1.

referrals should be brought forward for inclusion in the FY 2022-23 Budget scheduled for adoption on June 7, 2022. These requests are summarized under four sections: (1) No General Fund Needed (2) General Fund Needed (3) Funding is TBD (to be determined) and (4) City Council Clarification/Confirmation Requested:

No General Fund Needed:
 Homelessness Task Force – feasibility study of Tiny Homes village (estimated $130,000), which may be funded with Housing Authority Fund #295. Council provided direction on this item on April 19, 2022 and the proposed budget will be updated to reflect this appropriation.  Senior Center Mural (estimated $20,000), which may be funded from the Public Arts Fund.

General Fund Needed (total $200,000):
 3-Day Roller skate summer event (estimated $100,000), which may be funded with one-time General Fund. It is important to note that the skating event, if funded, will be scheduled for summer 2023.  Ferris Wheel – 4th of July (estimated $55,000), which may be funded with one-time General Fund.

After an unsuccessful solicitation process, staff contacted potential ferris wheel vendors in preparation for the last ARPA Council discussion on March 15, 2022. At that time, staff was able to identify two vendors. In preparation for the Study Session, staff followed up whether a ferris wheel is still available and did not receive a response. Further, it is important to note that the time for contracting for this amenity, even if available, is running short.
 Solar Panels at City facilities (estimated $25,000 for financial feasibility analysis), which may be funded with one-time General Fund.
 Address on City Hall façade ($20,000 for design cost), which may be funded with one-time General Fund.

Funding is TBD (To Be Determined):
 Ballot Measure(s), if any, may be funded with Unanticipated Expenditure Appropriation.  Childcare Center Initial Assessment – initial assessment will be handled by staff and no funding is requested at this time.
 Third-party food delivery fee caps – estimated fiscal impact cannot be determined at this time. It needs additional legal analysis, and therefore the City Attorney’s Office and the Office of Economic Development will collaborate on next steps. Per the Urgency Ordinance adopted by the City Council on October 20, 2020, the third-party food delivery per service fee is capped at 15% and non-delivery services is capped at 10%. Although the Urgency Ordinance is temporary in nature, it is still in effect until the City Council terminates the local emergency declared by the City Council on March 17, 2020.  Lease 230 N. Main St. – No additional funding is needed at this time however, moving forward with this project will require interest and engagement by property owner. Although the City has reached out multiple times to the owner about leasing the site no response has been forthcoming.

City Council Clarification/Confirmation Requested:
 Murals on VTA and CalTrans Pillars – On January 11, 2022, the City Council approved a referral for mural installations on pillars located on Main Street and owned by CalTrans below State Route 237 along with a suspension of the annual mural programming for two years to fund the pillar mural installation in the amount of $100,000. On May 3, the City Council approved a referral for mural installations on up to six pillars owned by VTA located on Great Mall Parkway across from the Milpitas Transit Center along with a suspension of the annual mural programming for two years to fund the pillar mural installation in the amount of $100,000. Staff seeks clarification whether Council intended to move forward with the mural installations on Main Street and on Great Mall Parkway, suspending the annual mural program for four years from FY 2022-23 to FY 2025-26 and, if so, which site should be prioritized.
 Homelessness Encampment Response Team Funding – During Announcements near the beginning of the March 15, 2022 Council meeting, Council requested funding be considered to implement a homelessness encampment response team as part of budget discussion. Subsequently, during item 22 discussion of ARPA funding, Council provided direction to reallocate $100,000 to continue homeless outreach, assessment, and street-based case management services with Santa 5 Item # 1.

Clara County’s Homeless Engagement and Access Team (HEAT). The HEAT Team provides specialized services and is integrated within the County’s housing, health, and human services system.

Staff believes this direction is responsive to the Council’s overall goal of conducting outreach and providing referrals to connect the unhoused community to a Countywide network of unhoused services and is seeking confirmation from Council on this approach.

On May 4, 2022, the Santa Clara County Library District (SCCLD) finalized the funding requested from the City for the additional operating hours to be $54,842. This is supplemental information and is an improvement to the FY2022-23 proposed budget. Specifically, the Proposed Budget assumed $300,000 which is the typical annual funding; however, this action provides the City with one-time General Fund resources of $245,000, which Council may consider funding one-time services or purchases for FY 2022-23.

Community Survey
The community outreach program included a statistically valid resident survey, an Open Townhall survey, two virtual community meetings (March 11 and April 7), and an employee townhall (April 7). In the January 2022 community engagement survey, 83% of adult residents rated that they are satisfied with the overall quality of life in Milpitas, a significant increase from last year’s 79% and suggesting that residents continue to view living in Milpitas favorably; 88% of residents overwhelmingly agree that Milpitas’ diversity is an asset, 84% of residents feel that different cultures are celebrated, and 87% agree that the city is family friendly. Further, Police, 911 response and infrastructure continue to rate as residents’ top priorities. However, slightly more funding is given to environment, community wellness, and transportation in 2022 compared to 2021.

Community members were also given a hypothetical $100 budget and asked to allocate dollars based on what they considered the most important of the six Council Priority Areas the City should invest for the upcoming year. The dollars respondents allocated to each Council Priority Area shows how important, in the aggregate, a particular Priority Areas is. Based on the responses, Public Safety was ranked as the most important Council Priority Area with $22.46 of the allocations, followed by Neighborhoods and Housing ($17.23), Economic Development ($16.60), Environment ($15.03), Community Wellness and Open Space ($14.65), and Transportation and Transit ($14.03).

Graph 1 – Community Survey Response

6 Item # 1.

Measure F Oversight Committee
On March 17, the Measure F Oversight Committee (Committee) reviewed and confirmed that the services recommended to be maintained with Measure F funding are an allowable expenditure consistent with Measure F. The estimated Measure F revenues in the amount of $6.4 million are equivalent to 5.4% of the $117.7 million General Fund revenues estimated for Fiscal Year 2022-2023. At the March 17th meeting, the Committee received the following summary of services that the City is able to maintain with Measure F. With the new budget information for Library services, the City will adjust funding for maintaining other services.

For Council consideration, the Committee made the following recommendations for increases and/or decreases in City spending:

 Milpitas Fire Department to cease funding and operation of a dedicated EMS vehicle  Double the square footage available for community gardens  City to work with school district to enable community use of tennis courts  City to fund a grant of $2,000 towards the Calaveras Hills High School Garden Club to maintain a fruit orchard within their compounds

Next Steps
Adoption of the FY 2022-23 Budget is scheduled during a public hearing on June 7, 2022. In preparation for the public hearing, staff will bring forward any amendments to the Proposed Budget, budget and position related resolutions, the debt ceiling calculation, Gann Limit calculation, and request authorization for award of contracts related to the approval of the FY 2022-23 Budget.

Policy Alternative:

Not applicable

7 Item # 1.

Fiscal Impact:

The FY 2022-23 Citywide Proposed Budget of $207.7 million includes 440.5 funded positions (full time equivalent FTEs), with the General Fund proposed budget estimate at $117.7 million.

California Environmental Quality Act:

This item is not a Project under CEQA in accordance with CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption) as it can be seen with certainty that a general discussion of funding priorities by the City Council will not have a significant effect on the environment. Further, the item is also not a Project pursuant to CEQA Guidelines Section 15378(b)(2) as an administrative activity which is defined in the CEQA Guidelines to include the purchase of supplies and personnel related actions. It is further exempt under CEQA Guideline 15378(b)(4) as it is a government fiscal activity that does not involve a commitment to any specific project which may result in a potentially significant physical impact on the environment. Although the use of funding will be discussed for various potential projects, future environmental analysis will be conducted for the various potential projects prior to the City making any commitment or approval of any project, or it is covered by the CEQA Guideline 15061(b)(3) and/or 15378(b)(2).

Recommendation:

Receive a presentation on the FY 2022-23 Proposed City of Milpitas Operating Budget and provide feedback to staff.

Attachments:

1. FY 2022-23 Proposed Budget (binder edition previously distributed to City Council)

2. Recommended Fiscal Policies

3. Recommended Fiscal Policies redline version

4. Recommended Budget Guidelines clean redline version

5. Recommended Budget Guidelines redline version

6. Open Townhall Online Survey – Written Responses

8 Item # 1.
9 Item # 1.

City of Milpitas
Community Vision
Milpitas will preserve its close-knit community
and rich cultural diversity as it moves with
innovation into the future by supporting
sustainable growth and development, ensuring
public safety, enhancing the environment and
natural landscape, and nurturing family and
community connections.

Organizational
Mission
The City of Milpitas is
committed to accomplishing
the community's vision by
providing fiscally sound,
superior services.

Our Values
Superior Customer Service • Open Communication • Integrity and Accountability Trust and Respect • Recognition and Celebration
ii City of Milpitas
10 Item # 1.

City Council
City of Milpitas iii
11 Item # 1.

Council Priority Areas
Community Wellness and Open Space
Continue to provide parks and amenities for people of all ages and abilities to enjoy higher levels of physical and mental health.

Economic Development and Job Growth
Continue to strengthen our economic foundations that support community prosperity and opportunity while ensuring a sustainable and livable city.

Environment
Promote a sustainable community and protect the natural environment.

Governance and Administration
Continue to streamline processes for enhanced service and remain committed to long- term fiscal discipline and financial stewardship.

Neighborhoods and Housing
Continue to explore innovative approaches to incentivize affordable housing projects, collaborate with key stakeholders to care for our most vulnerable populations, and support and engage neighborhoods through dedicated programs and services.

Public Safety
Continue to invest in police and fire protection, in partnership with our community.

Transportation and Transit
Continue to seek and develop collaborative solutions to meet the transportation challenges facing our community and our region.
iv City of Milpitas
12 Item # 1.

Table of Contents
Community Vision, Mission and Values ........................................................... ii City Council .............................................................................................................. iii Council Priority Areas ............................................................................................ iv Letter of Transmittal ............................................................................................... v City Profile ................................................................................................................. 1 Organization Chart ...................................................................................................................... 1 History ........................................................................................................................................... 2 Demographic Profile ................................................................................................................... 3 Milpitas at a Glance .................................................................................................................... 7 FY 2023-2032 Ten-Year General Fund Financial Forecast ........................... 9 Fiscal Policies and Budget Process .................................................................. 19 Fiscal Policies .............................................................................................................................. 19 Budget Guidelines ....................................................................................................................... 24 FY 2022-23 Budget Process ..................................................................................................... 28 Budget Development and Document ....................................................................................... 29 Awards .......................................................................................................................................... 34 Financial Information ............................................................................................. 37 Fund Structure ............................................................................................................................. 37 Budget Summary ......................................................................................................................... 38 Revenues and Expenditures (All Funds) ................................................................................. 40 Permanent Positions by Department ....................................................................................... 42 Revenues by Fund ...................................................................................................................... 44 Revenues by Fund (Detail) ........................................................................................................ 46 Expenditures by Fund ................................................................................................................. 56 Expenditures by Fund (Detail) ................................................................................................... 58 Expenditures by Function .......................................................................................................... 68 Internal Cost Allocation ............................................................................................................... 70 Operating Transfers Statement ................................................................................................. 72 ARPA Informational Schedule ................................................................................................... 76 Table of Contents
City of Milpitas
13 Item # 1.

Budget Narrative and Summary .......................................................................... 83 City Council .................................................................................................................................. 83 City Manager ................................................................................................................................ 89 City Clerk ...................................................................................................................................... 99 Economic Development ............................................................................................................. 107 City Attorney ................................................................................................................................. 115 Building Safety and Housing ..................................................................................................... 123 Engineering .................................................................................................................................. 137 Finance ......................................................................................................................................... 149 Fire ................................................................................................................................................. 161 Human Resources ...................................................................................................................... 175 Information Technology .............................................................................................................. 185 Planning ........................................................................................................................................ 197 Police ............................................................................................................................................. 209 Public Works ................................................................................................................................ 223 Recreation and Community Services ....................................................................................... 243 Non-Departmental ....................................................................................................................... 255 Capital Budget .......................................................................................................... 259 Capital Improvement Program Overview................................................................................. 259 Capital Improvement Program Summary ................................................................................ 262 Appendix .................................................................................................................... 263 Fund Descriptions ....................................................................................................................... 263 Revenue Descriptions ................................................................................................................ 266 Expenditure Descriptions ........................................................................................................... 269 List of Funds ................................................................................................................................. 277 List of Departments/Divisions/Functions ................................................................................. 278 List of Revenues .......................................................................................................................... 280 List of Expenditures .................................................................................................................... 284 Abbreviations and Acronyms ..................................................................................................... 287 Glossary of Terms ....................................................................................................................... 289 Index .............................................................................................................................................. 294 Table of Contents

City of Milpitas
14 Item # 1.

April 29, 2022
Honorable Mayor and Members of the City Council
As the City continues to recover from this unprecedented pandemic, the Proposed FY 2022-23 Budget in the amount of $207.7 million transitions the City from the severe impacts caused by the Pandemic to a recovery mode while being cautiously optimistic. The Proposed FY 2022-23 Budget will be presented at the May 10, 2022 City Council meeting for Council consideration and community input. With the Pandemic significantly behind us after two years, we are optimistic about the future but remain tempered by possible economic impacts that may stem from the unfortunate war in Europe, rising interest rates, rising inflation rates, historic fuel prices and continued supply chain challenges. This budget includes enhanced service levels especially in public safety, public works and infrastructure, and modest investments in internal support departments as well as contract services and part- time services to support housing, long term planning, and community services. This is a balanced budget that maintains Council approved reserves and leverages funding from the American Rescue Plan Act to support impacted residents and businesses in our community. We continue transitioning with incremental and measured strategies to maximize City resources and optimize services to the community.

In early 2022, the State experienced a third pandemic surge with Omicron, but we are now seeing the light at the end of the tunnel with 85.1% of Milpitas residents fully vaccinated and test positivity at only 2.45%. With new COVID-19 infections and hospitalizations falling to pre-surge levels, on February 25, 2022, Governor Gavin Newsom acted to lift almost all of the remaining provisions of his COVID-19 executive orders (EOs). Also on March 11, 2022, the State adopted new indoor mask policies and moved from indoor mask requirements to mask recommendations, with the exception of high transmission settings (i.e. public transit, health care settings, etc.).

As the State recovers, the Governor continues to focus on scaling back mandatory COVID-19 regulations while maintaining essential testing, vaccination, and health care system supports that ensure California has the needed tools and flexibility to strategically adapt our response for what lies ahead. Through collaboration at all levels -- Federal, State and County – the City played an active role in providing Pandemic health response through testing, vaccination and Emergency Operations Center management.

Additionally, President Biden’s American Rescue Plan Act (ARPA) is providing direct relief to our residents and businesses in need, funding efforts to combat the virus, and allocating $16.7 million to the City of Milpitas over a period of two years, partially offsetting the financial impact the City experienced. Council authorized five Investment Areas including Community Services, Economic Vitality, Infrastructure, Public Safety, and Technology and over 25 diverse programs to directly help the residents and businesses while also funding essential City services and infrastructure.

The economic impacts of the Pandemic significantly affected the financial condition of the City’s General Fund, which pays for most City services such as police and fire; youth, senior, and recreation services; repairing park equipment and maintaining parks and recreation centers; and internal support departments and administration. In comparison to the last pre-pandemic revenue for FY 2018-19, the City’s General Fund incurred cumulative revenue losses of approximately $30 million over FY2019-20 and FY2020-21. Despite the revenue loss, the Council’s decisive actions and strategies which included Measure F, a ¼ cent local sales tax measure with an eight-year sunset, defunding 20 capital improvement projects ($5.7 million), use of reserves, interfund transfers, deferred maintenance, and defunding of positions (23.75), as well as significant employee wage concessions, guided the City through this financial downturn. This collective effort helped the City navigate the Pandemic with minimal service level reductions while maintaining fiscal stability. As the City recovers, the City’s General Fund is Letter of Transmittal
City of Milpitas v
15 Item # 1.
projected to receive higher revenues, provide for restorations and/or measured increases of services, and generate modest annual surpluses in the coming years (see Table 1).

Table 1 – 5-Year General Fund Forecast ($ in millions)
Revenues and other Sources $110.8 $117.7 $124.0 $130.1 $134.4 $138.8 Expenditures (110.8) (117.7) (122.6) (126.8) (130.5) (135.2) Annual Surplus/(Deficit) $0.0 $0.0 $1.4 $3.3 $3.9 $3.6
FY 21-22
Adopted
Budget
FY 22-23
Proposed
Budget
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
During the FY 2022-23 Preliminary Budget Study Session held on January 25, staff projected a structurally balanced budget, modest revenues increases and a status quo service level. Since that time, more data has been provided to inform the revenue assumptions and service prioritizations through the City Council, community engagement and employee townhall. This is a transitional stage that allows incremental strategies to utilize City resources in a manner that optimize services to the community.

Economic Outlook
Two years after the National COVID-19 Emergency Declaration, we are confident with the fiscal recovery and forecast ahead. The proposed state of California FY23 budget correlates with growth of nearly 30% from 2019-20 to 2020-21 and estimates average year-over-year growth rate of 3.7% through 2025-26. Also, the State estimates economic growth will continue after 2021 with real Gross Domestic Product (GDP) growth averaging 2.8% through 2024. Locally, the Milpitas unemployment rate rebounded to pre-pandemic levels with only 2.9% unemployment as of December 2021 compared to the peak of 12.9% in April 2020.

At the Federal level, the American Rescue Plan Act (ARPA) injected a $2 trillion fiscal stimulus into the economy with $16.7 million allocated to the City. Federal COVID funding efforts continue in Congress to provide response to COVID health and economic impacts. On April 4, 2022, Congress approved $10 billion to fund domestic needs for vaccines, tests and therapeutic drug treatment. This leverages the City’s path to recovery.

In early 2022, the third surge of OMICRON was significantly more contagious, and fortunately cases have reduced significantly with Santa Clara County test positivity at 2.45% in April. Vaccination remains a critical community tool in fighting COVID. Per the December 2021 UCLA Anderson School Economic Forecast, “The forecast for the second quarter of 2022 calls for stronger growth than previously predicted, as the economists expect in-person service consumption to rebound". For the third and fourth quarters of 2022, growth is forecast at

4.6% and 2.4%, respectively.

Despite all the good news on the horizon, there are other factors that temper our economic outlook. These include the tragic war in Ukraine, inflation with historically high CPI and fuel prices, rising interest rates, rising inflation rates, reduction of Federal Reserve economic easing, continued supply chain challenges and labor shortage.

Another critical variable is how the Pandemic may permanently impact society, such as cut back to in-person commerce or services through online shopping, virtual work, conferences and/or leisure services to name only a few. While the City forecasts our sales tax revenues will recover to pre-pandemic levels, we forecast the Pandemic will permanently alter business travel impairing the City hotel (transient occupancy tax) revenues.

FY 2022-23 Citywide Budget
As stated above, the FY 2022-23 Proposed Budget funds restored and enhanced service levels as compared to the current fiscal year. The FY 2022-23 citywide Proposed Budget of $207.7 million has increased $12.5 million, Letter of Transmittal

vi City of Milpitas
16 Item # 1.
or 6.4%, in comparison to the Fiscal Year 2021-22 Adopted Budget of $195.2 million. As part of Council approved actions related to American Rescue Plan Act (ARPA), 4 Firefighter/Paramedics, 2 Police Officers and 1 Program Coordinator (Recreation) were funded earlier than originally planned. Consistent with FY 2021-22 Adopted Budget actions, 1 Human Resource Technician and 1 Information Technology Analyst were funded effective January 1, 2022 and July 1, 2022, respectively. With these actions, the FY 2021-22 Amended Budget funded position count increased by 9 positions from 415.50 FTEs to 424.50 FTEs. This Budget proposes to increase the position count by 16 FTEs, which includes the restructure of City Attorney Office, to 440.50 FTEs.

Table 2 – FY 2022-23 Funded Position Summary by City Service Area City Service Area
FY 2021-22
Adopted
Budget
FY 2021-22
Changes*
FY 2021-22
Amended
Budget
FY 2022-23
Proposed Budget
Changes
FY 2022-23
Proposed
Budget
Public Safety 190.00 6.00 196.00 2.00 198.00
Community Development 65.00 65.00 65.00
Community Services and
Sustainable Infrastructure* 101.00 1.00 102.00 10.00 112.00 Leadership and Strategic Support 59.50 2.00 61.50 4.00 65.50 Total 415.50 9.00 424.50 16.00 440.50
*Positions which were only defunded partially as approved in the FY 2021-22 Adopted Budget or authorized to be funded with ARPA funds The City’s population expanded by 16,017 residents, or 24%, from 66,729 in 2009 to 82,746 in 2023, estimated population based on trends available from the U.S. Census Bureau for the last three years. At the same time, the City’s funded positions to provide services only expanded by 13.8% from 387 positions to 440.5 positions, an increase of 53.5 positions.

As shown in Table 3 below, the FY 2022-23 Proposed Budget is balanced with $207.7 million in revenues (including Transfers In) and $207.7 million in expenditures (including Transfers Out). The FY 2022-23 estimated revenue across all funds of $207.7 million is an increase of $12.5 million, or 6.4%, compared to the FY 2021-22 Adopted Budget estimated revenue of $195.2 million. The FY 2022-23 estimated expenditures across all funds of $207.7 million is an increase of $12.5 million, or 6.4%, compared to FY 2021-22 adopted expenditures of $195.2 million. This is primarily due to proposed service enhancements, an increase in Capital Improvement Program funding, and scheduled salary increases. Also to note, the Housing Authority budget variance is primarily due to clerical over estimation of prior year budget appropriation.

Table 3 – FY 2022-23 Citywide Budget Summary (All Funds) Citywide Revenues and other Financing Sources ($ in millions) General Fund $110.8 $117.7 6.2 %
Housing Authority 1.0 0.5 (50.0) %
Other Funds 16.5 16.1 (2.4) %
Water Fund 31.5 34.1 8.3 %
Sewer Fund 21.8 23.7 8.7 %
Net Operating Funds Total 181.6 192.1 5.8 %
Capital Projects Funds 13.6 15.6 14.7 %
Total $195.2 $207.7 6.4 %
FY 2021-22
Adopted Budget
FY 2022-23
Proposed Budget
% Change from
Prior Year Adopted
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Citywide Expenditures
Personnel Services $99.5 $105.9 6.4 %
Supplies & Contractual Services 55.8 60.2 7.9 %
Capital Outlay 1.0 2.1 110.0 %
Operating Transfers Out 12.1 10.9 (9.9) %
Subtotal 168.4 179.1 6.4 %
Capital Improvements 22.3 23.9 7.2 %
Debt Service 4.5 4.7 4.4 %
Total $195.2 $207.7 6.4 %
FY 2021-22
Adopted Budget
FY 2022-23
Proposed Budget
% Change from
Prior Year Adopted
General Fund
The Fiscal Year 2022-23 Proposed General Fund budget of $117.7 million is balanced with $117.7 million in estimated revenues and other sources (Revenues) without the use of reserves. The Fiscal Year 2022-23 Revenues are estimated at $117.7 million, an increase of $6.9 million, or 6.2 percent, in comparison to the Fiscal Year 2021-22 Revenue estimate of $110.8. The increase in revenue is primarily due to estimates from Sales Tax ($2.0 million), and charges for services ($1.6 million) such as fees related to recreation activities, licenses, permits and fines ($1.2 million) and Property Tax ($1.4 million).

This budget and the accompanying FY 2023-2032 Ten-Year General Fund Financial Forecast (Forecast) assume that the Pandemic was transformative, and that brick and mortar shopping and business travel will not return to pre-pandemic levels resulting in ongoing revenue loss estimated in the millions per year.

With the passage of Measure F, a sales tax measure with a sunset in eight years and requiring independent audits and a citizens’ oversight committee, the voters set the foundation for the City to maintain fiscal stability and preserve City services during these trying times. Consistent with the ballot measure, the City Council established the Measure F Oversight Committee (Committee) and approved the roles and responsibilities of the Committee.

One of Committee’s responsibilities is to annually review the projected revenues and recommended expenditures for the funds generated by Measure F as part of the development of the budget and to advise the Council whether the recommended Measure F funded expenditures are consistent with the ballot measure. The City Council appointed the Committee members and March 16, 2022, the Committee reviewed and confirmed that the services recommended to be maintained with Measure F funding are an allowable expenditure consistent with Measure F.

The estimated Measure F revenues in the amount of $6.4 million are equivalent to 5.4% of the $117.7 million General Fund revenues estimated for Fiscal Year 2022-2023. With this additional tax revenue, the City is able to maintain the services as summarized in the table below:

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Services Maintained by Measure F Funds ($ in millions)
Respond to 911 calls within established parameters, resolve crime, dedicate staff to traffic safety and practice community-oriented policing and maintain necessary fleet & equipment
$1.9
Fire stations to ensure 24/7 coverage across the City and maintain necessary fleet & equipment $1.8
Services for aquatic, senior, and youth services $0.5
Services for parks, tree and facility maintenance and necessary fleet & equipment $1.3
Support local businesses in their economic recovery, retain existing business and attract new businesses, workforce development and property asset management
$0.2
Neighborhood preservation and code enforcement $0.4
Maintain library hours which keep the library open on weekday evenings and weekends $0.3
Total Services Funding $6.4
Description of Services Maintained with Measure F Funds FY 2022-23 Budget Cost ($ Million)
As shown in Table 4 below, with the sunsetting of Measure F effective April 1, 2029, deficits are anticipated starting with FY 2029-30. The City continues to prioritize economic development, innovations, and cost management to eliminate this forecasted deficit.

The Fiscal Year 2022-23 General Fund proposed expenditures of $117.7 million are $6.9 million, or 6.2% higher, in comparison to the Fiscal Year 2021-22 General Fund expenditures of $110.8 million primarily due to increase in salaries and benefits ($5.1 million), services and supplies ($1.3 million) and capital outlay ($0.4 million). The increase in salaries is due to cost of living adjustment (COLA) per labor contracts, positions approved for funding during the current fiscal year and proposed prioritized positions to be restored and added in the upcoming fiscal year. There are no newly added employee benefits; however, as salaries increase, benefit costs also increase as they are directly correlated. Risk management costs for liability and property insurance will increase approximately $0.6 million for all funds, with 69% allocated to General Fund and 31% to other funds. As a member of the Common Interest Group (CIG) which has sued San Jose and Santa Clara over contractual disputes at the San Jose Santa Clara Regional Wastewater Facility (RWF), the City’s 40% share of legal costs is anticipated to be $1 million. Eleven (11) vehicles are planned to be purchased within the police, fire and public work departments.

Table 4 below shows the FY 2023-2032 Ten-Year General Fund Financial Forecast. Over the ten years of the Forecast based on information available in March, staff projects annual surplus and deficits between $1.4 million and -$11.2 million respectively. With the sunsetting of Measure F effective April 1, 2029, deficits are anticipated starting with FY 2029-30.

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Table 4 – Ten-Year General Fund Financial Forecast ($ in millions) Revenues and other Sources $110.8 $117.7 $124.0 $129.8 $134.4 $138.8 Expenditures (110.8) (117.7) (122.6) (126.8) (130.5) (135.2) Annual Surplus/(Deficit) $0.0 $0.0 $1.4 $3.3 $3.9 $3.6
FY 21-22
Adopted
Budget
FY 22-23
Proposed
Budget
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
Revenues and other Sources $143.6 $146.6 $146.0 $148.9 $153.6 Expenditures (139.5) (145.8) (152.0) (158.9) (164.8)
Annual Surplus/(Deficit) $4.1 $0.8 ($6.0) ($10.0) ($11.2) FY 27-28
Forecast
FY 28-29
Forecast
FY 29-30
Forecast
FY 30-31
Forecast
FY 31-32
Forecast
American Rescue Plan Act
On Thursday March 11, 2021, President Biden signed into law the American Rescue Plan, a $1.9 trillion stimulus package, to counteract the economic impacts of the Pandemic. The bill contains a $350 billion allocation for state and local government aid including $45.5 billion allocated to metropolitan cities (pop. over 50,000), such as the City of Milpitas, utilizing a modified CDBG (Community Development Block Grant) formula. Based on this formula, our City will receive $16.7 million paid in two tranches - first half was received on June 1, 2021 and the second half one year later. The U.S. Treasury issued the Interim Final Rule (IFR) on May 10, 2021 and the Final Rule on January 6, 2022, which went into effect on April 1, 2022. Council began ARPA discussions in March 2021 and adopted guidelines, investments plans and project appropriations by August 2021. The five ARPA investment areas include: community services, economic vitality, infrastructure, public safety, and technology. Council also provided direction to Staff to bring back a proposed preliminary ARPA Investment Plan for Council consideration in August 2021.

Utility Funds
The City’s Utility Funds for the Water and Sewer utilities are balanced. On February 19, 2019, the City Council adopted Ordinance Nos. 120.48 and 208.53, adjusting water, recycled water, and sewer service charges and fees for Fiscal Years FY 2018-19 through FY 2022-23. In accordance with the rate ordinances, Water and Sewer rates will increase by approximately 6 percent and 5 percent, respectively. For a typical single-family residential household, the bi-monthly water charge will increase by $8.15 from $135.77 to $143.92; and the bi-monthly sewer charge will increase by $5.8 from $118.34 to $124.14. The combined bi-monthly increased cost for a typical single-family residential household will be $16.43.

With the increased water rates, the Water Utility is better positioned to respond to water system gaps including infrastructure repair and rehabilitation identified in the Water Master Plan. The increased water rates will also ensure sufficient funds are available to pay for projected wholesale rates from our two providers for future years.

However, Staff will continue to monitor wholesale rates which may increase at a higher rate than the budget assumption consequently diminishing water fund resources for infrastructure repair. Similarly, the sewer rate increase will better position the Sewer Utility to cover anticipated funding needs for CIP projects expected to be identified in the Sewer Master Plan, and the many unknowns associated with the modernization of the San Jose/ Letter of Transmittal

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20 Item # 1.

Santa Clara Regional Wastewater Facility (RWF). Both the water and sewer master plans and financial plans will be revised in the upcoming months.

Capital Improvement Program
May 3, the City Council is scheduled to approve the 2023-2027 Capital Improvement Program (CIP). A summary of the CIP can be found in this document as resources from various funds are transferred to capital projects annually. The funds for the first year of the Council approved FY 2023-2027 CIP are scheduled to be appropriated with the approval of the FY 2022-23 budget. The FY 2022-23 Proposed Capital Improvement Program funding in the amount of $23.9 million is $1.6 million more than the FY 2021-22 Adopted CIP of $22.3 million, which includes projections amongst community improvements, parks, streets, water, sewer and storm.

Council Priority Areas
During the FY 2022-23 Preliminary Budget Study Session held on January 26 as continued to the February 2nd City Council meeting, the City Council reviewed its seven priority areas to guide the development of the Budget.

Community Wellness and Open Space: Continue to provide parks and amenities for people of all ages and abilities to enjoy higher levels of physical and mental health.

Economic Development and Job Growth: Continue to strengthen our economic foundations that support community prosperity and opportunity while ensuring a sustainable and livable city.

Environment: Promote a sustainable community and protect the natural environment.

Governance and Administration: Continue to streamline processes for enhanced service and remain committed to long-term fiscal discipline and financial stewardship.

Neighborhoods and Housing: Continue to explore innovative approaches to incentivize affordable housing projects, collaborate with key stakeholders to care for our most vulnerable populations, and support and engage neighborhoods through dedicated programs and services.

Public Safety: Continue to invest in police and fire protection, in partnership with our community.

Transportation and Transit: Continue to seek and develop collaborative solutions to meet the transportation challenges facing our community and our region.

Citywide Budget Process, Council Referrals, and Community Engagement The The budget process is an exercise in fiscal strategic planning that involves overall guidance from the City Council, input from the community, and close coordination between the executive team and numerous staff budget representatives across all departments. At the January 11, 2022 meeting, Council selected the top ten work plan items including some with budgetary implications to move forward. Work plan items with potential one- Letter of Transmittal
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21 Item # 1.
time budgetary implications still require further refinement and any funding needs related to these work plan items are not assumed in this budget. The next quarter prioritization is scheduled to take place at the upcoming May 3, 2022 City Council meeting with selection of an additional top five work plan items. At the May 10, 2022 Preliminary Budget Study Session, the City Council will also provide input to staff’s budget considerations.

The community outreach program included a statistically valid resident survey, an Open Townhall survey, two virtual community meetings (March 11 and April 7), and an employee townhall (April 7). In the January 2022 community engagement survey, 83% of adult residents rated that they are satisfied with the overall quality of life in Milpitas, a significant increase from last year’s 79% and suggesting that residents continue to view living in Milpitas favorably; 88% of residents overwhelmingly agree that Milpitas’ diversity is an asset, 84% of residents feel that different cultures are celebrated, and 87% agree that the city is family friendly. Further, Police, 911 response and infrastructure continue to rate as residents’ top priorities. However, slightly more funding is given to environment, community wellness, and transportation in 2022 compared to 2021.

The dollars respondents allocated to each Council Priority Area shows how important, in the aggregate, a particular Priority Areas is. Based on the responses, Public Safety was ranked as the most important Council Priority Area with $22.46 of the allocations, followed by Neighborhoods and Housing ($17.23), Economic Development ($16.60), Environment ($15.03), Community Wellness and Open Space ($14.65), and Transportation and Transit ($14.03).

Graph 1 - Community Survey Response
'Dollars' allocated to Council Priority Areas
Public Safety Neighborhoods
& Housing
Economic
Development
Environment Community
Wellness &
open Space
Transportation/
Transit
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xii City of Milpitas
22 Item # 1.

Proposed Service Level Changes
This Proposed Budget includes service level changes reflecting additions which are legally mandated; responds to prioritized City Council referrals; restores defunded priority positions; addresses areas of concern in Public Safety; adds positions to support increased service demands in park/land maintenance and capital improvements.

The consideration of City Council referrals is on-going and will be incorporated in the budget as prioritized and funding becomes available.

In FY 2018-19, the City structured its operations into City Services Areas (CSAs) that foster interdepartmental coordination of efforts, resources, and goals. Service level changes are described briefly within each CSA section below and in more detail in the Department Budget sections including statements regarding the performance outcome and impacts if the service level change is not approved.

Public Safety CSA
(Fire and Police)
Service Level Changes

1. Fire Fleet Enhancement ($200,000 one-time)
This action funds 2 command/deployment vehicles (model F250s) to replace part of an aging fleet. Fire department (Department) currently utilizes repurposed retired Police patrol vehicles. These repurposed vehicles are approaching 20 years of useful life and are no longer reliable. This funding will start the gradual process of modernizing the Department's command vehicle fleet.

2. Lifepak for Ambulance Program ($37,728 one-time)
This action funds an additional Lifepak 15 Monitor and Defibrillator, primarily used for emergency response and resuscitation of patients and it will be placed on the new ambulance. Defibrillators are devices that restore a normal heartbeat by sending an electric pulse or shock to the heart. They are effective in preventing or correcting an arrhythmia and temporarily restoring cardiac function.

3. Interra Operations Module Enhancement ($33,000 one-time) This action funds the Regional Interra Operations, Preplan and Incident Management Milpitas bridge invoices for the current regional system agencies for one full calendar year. Interra is National Fire Protection Agency (NFPA) 950/951 Compliant, which covers the standard for data development and exchange for the Fire Service. This sole source is also based on interoperability with other governmental agencies within Santa Clara County (SCC) as Interra is the only provider of the regional Operations, Preplanning and Incident Management to Santa Clara County Fire as well as the City of Santa Clara Fire Department - no other system provides this functionality to the region and interoperability is required for sharing of information and reporting.

4. Fire Administrative Support Staffing ($152,913)
This action adds 1.0 Administrative Analyst to assist with multiple programs/projects across multiple divisions in the Fire Department. This position will relieve critical workload gaps and support critical business services in Fire Administration, Suppression, Training, EMS, and the Office of Emergency Management (OEM). Insufficient administrative capacity has significantly impacted the Fire Department’s ability to accomplish required operations, program management, personnel development, data analysis, and service enhancements to the City. This position will be able to manage projects currently being managed by Battalion Chiefs (BC). The Battalion Chiefs are working a 48/96 shift schedule which creates difficulties coordinating and communicating with internal and external stakeholders which work traditional Letter of Transmittal
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23 Item # 1.
40-hour schedule. The shift schedule causes delays in project implementation and coordination and ultimately creates frustration with the project managers in other departments supporting the Fire Department. Approximately 60-70% of the BC’s work time is spent coordinating/managing department level programs/projects and performing administrative tasks.

5. Police Property Evidence Unit Staffing ($136,855)
This action adds 1.0 Police Evidence Technician in response to increasing workload in the Property Evidence Unit (PEU). The PEU is responsible for receiving, documenting, storing, managing, and maintaining the integrity and security of the property and evidence retained by the Milpitas Police Department. The primary job functions include but are not limited to: intake; custody/control; disposition; discovery requests,; property returns; report processing, crime lab submissions; and purging evidence/ property.

6. Axon Taser Upgrade ($39,235)
This action adds additional funding to Axon Enterprises contractual services to upgrade the current Taser X26P to Taser 7 model. The department currently issues Axon Enterprise, Inc. body worn cameras and conducted energy weapons to sworn personnel and subscribes to their cloud-based digital evidence management system for data storage, items critical to operations. Conducted energy weapons have been part of Milpitas Police officers’ daily equipment for 25+ years and are an integral tool that provide officers with a less than lethal force option, reducing risk of injury to officers and suspects. The Department has issued the Taser X26P model to all sworn officers for 10+ years. Due to advancing technology, Axon Enterprise, Inc. developed the Taser 7 model and will not support the currently issued model. The Taser 7 model offers enhancements including close-range optimization, more effective connection, enhanced inventory and data management, daylight laser, improved ergonomic design, and more.

7. Wellness Services Enhancement ($30,000)
This action funds additional wellness services for the Police Department staff to enhance existing Peer Support and Employee Wellness Program by implementing additional wellness resources for staff, such as attending Post-Traumatic Stress Retreats and providing an on-call mental health clinician for those seeking help and for post-critical incident debriefs.

Community Development CSA
(Building Safety and Housing, Economic Development, Planning, Engineering - Land Development, Fire Prevention)
Service Level Changes

1. Professional Services Enhancement ($200,000, net $0, one-time) This action funds Building Safety and Housing (Department) Professional Services to assist with Building Safety Programs for FY2022-23. Building safety professional services contracts are for services on an as- needed and on-call basis and can encompass plan review, inspection, or permit processing. Recruitments stopped due to the pandemic and while recruitments began again in FY2021-22, staffing has been insufficient compounded further by staff departures and vacancies in the department. In light of the uncertain staff situation and increased workload, the use of contractual services can enable the department to maintain a minimum level of service. This proposal will be funded from departmental vacancy savings as availability allows resulting in net zero impact on the budget.

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xiv City of Milpitas
24 Item # 1.

2. Accessibility Training ($20,000)
This action funds accessibility training to improve compliance with federal and state disability laws. The expenditure is offset with state fees revenues collected from local business licenses to increase disability access and compliance with construction related accessibility requirements.

3. Housing Staff Enhancement ($172,302)
This action funds a limited-term Administrative Analyst II (Housing) position for three years to administer the rent and mortgage relief program, homeless response services, resources and prevention initiatives, and Council priorities. Existing Staff resources are fully committed to delivering existing services and programs, many of which include require complying with federal and state mandates. Multiple new programs and initiatives have been added because of significantly increased funding, including ARPA, and other Council funded priorities. These include managing CDBG and Coronavirus funding programs; implementing rent and mortgage relief programs; implementing homeless outreach and assessment services; implementing mobile shower and laundry for unhoused residents; and conducting research on homeless resources and programs. Staff has also been working on several policy initiatives including the Housing Element, Assessment of Fair Housing, and Affordable Housing Ordinance. In order to accomplish these new programs and initiatives, ensure compliance, and achieve Council’s housing priorities, this limited term position is being proposed.

4. Property Asset Management Service ($50,000 one-time) This action provides one-time funding for a consultant to provide services for developing and managing the City’s real estate portfolio, and plan for future acquisition, disposition, leasing, relocation, valuation, and property management. The consultant will provide a real estate management report that describes the City’s real estate assets; mapping of assets; develop real property policies and activities; business relocation services; procedures for property disposition and leasing, appraisals, preliminary title reports, grant deeds, purchase and sale agreements, and due diligence and administration of all real estate transactions. The consultant’s real estate management services and report will result in a better understanding of current and future real property asset needs.

5. Special Project Associate for Zoning Ordinance Update ($93,142) This action funds a limited term Senior Planner to help with the update of the Zoning Ordinance to align with the new General Plan adopted in March 2021. The Zoning Ordinance is the primary implementation tool of the General Plan, impacting housing, transportation, economic development, public safety and general well- being of the residents in this community. State Law requires land use classifications and regulations in the Zoning Ordinance to be consistent with the Land Use designations established in the General Plan.

Currently, the City's Zoning Ordinance is not consistent with the new General Plan. Parts of the City's current Zoning Ordinance date back to 1955, and the document has been amended multiple times over the past several decades and is need of a comprehensive update.

6. Part-time Staff Assistant ($72,147 one-time)
This action funds a part-time Staff Assistant for one fiscal year to mitigate increased administrative workload. During the closure of City Hall due to the COVID-19 pandemic, the department experienced a significant increase in incoming phone calls and email inquiries from residents, developers, and business owners. Many customers, either for convenience or to avoid contact with other people, are requesting continued remote business practices rather than coming to City Hall. This has resulted in significant added workload and increased response times because of the need to manage increased phone calls and email messages with other work such as meetings, staff report preparation, and project coordination.

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City of Milpitas xv
25 Item # 1.

7. Granicus Annual Renewal Subscription Fees ($10,000)
This action funds the City’s annual subscription renewal fee with Granicus Host Compliance to identify and monitor STRs operating in Milpitas. On March 3, 2020, the Milpitas City Council adopted Ordinance 38.835 to regulate short-term rentals (STRs) within the City of Milpitas. The new Ordinance established a Short- term Rental program that includes a fee as well as a clear and simple process for new and existing STRs to come into conformance with the new operating standards, registration requirements, and record-keeping obligations. The City will continue its contract with Granicus Host Compliance to identify and monitor STRs operating in Milpitas. Based on the information provided, the Planning Department will continue to notify non-compliant STR operators of their obligations under the City’s STR Ordinance.

Community Services and Sustainable Infrastructure CSA
(Engineering-Capital Improvement Programs, Recreation and Community Services, and Public Works) Service Level Changes

1. CIP Design and Construction Principal Engineer Position ($69,358) This action funds 1.0 Principal Engineer in Design and Construction (D&C) section. The section serves the community by completing City Council approved and funded Capital Improvement Program (CIP) projects identified in the annual 5-year CIP document. Projects include, but are not limited to, repair and improvement of City streets, repair and replacement of underground utilities, rehabilitation of parks, Transit Area Specific Plan (TASP) infrastructure and other community improvements. The D&C Section is led by the CIP Manager and has two Associate Civil Engineer and four Junior/Assistant Engineer positions with one vacancy. The Principal Engineer will assist the CIP manager in project managing and planning, preparing the annual CIP document, supervising project teams and develop and implement goals, policies, procedures and priorities of the Section.

2. CIP Design and Construction Junior/Assistant Engineer Position ($63,203) This action funds 1.0 Junior/Assistant Engineer position in the Design and Construction Engineering Section (D&C).The section serves the community by completing City Council approved and funded Capital Improvement Program (CIP) projects identified in the annual 5-year CIP document. Projects include, but are not limited to, repair and improvement of City streets, repair and replacement of underground utilities, rehabilitation of parks, TASP infrastructure and other community improvements. The D&C Section is led by the CIP Manager and has two Associate Civil Engineer and four Junior/Assistant Engineer positions with one vacancy. The Junior/Assistant Engineer will assist the Associate Engineers in project administration from design through construction, review and prepare construction documents and manage contracts from design consultant and contractor.

3. Organic Waste Diversion Program and Solid Waste Contract Administration Funding ($0 Expenditure, $400,000 in Revenue)
This action funds ongoing existing programs required to ensure compliance with new regulations from the passing of Senate Bill 1383 (SB1383). Senate Bill 1383 (SB 1383), which became effective on January 1, 2022, mandates jurisdictions to divert organic waste from the landfill by requiring all residents and businesses to collect organic waste, such as food scraps. The staff cost related to the one-time implementation of SB 1383 has been charged to the Solid Waste Fund; however, there is no identified ongoing revenue source for the ongoing compliance work such as compliance inspections, route reviews, education and outreach, recordkeeping/documentation. Further, this action is the first phase of eliminating the structural deficit in the Solid Waste Fund, which is projected to have insufficient resources by the end of fiscal year 2022-23 to support solid waste programs. The City will charge an administrative fee of $400,000 Letter of Transmittal

xvi City of Milpitas
26 Item # 1.
to MSI, and MSI will incorporate this into their rates, effective July 1, 2022. $400,000 is approximately 2% (or $0.87) increase per month charge for the typical residential household or $10.50 annually.

4. Common Interest Group Legal Services Contribution ($1,000,000 one-time) This action funds legal costs incurred as part of the cost sharing agreement entered into by the City and Common Interest Group (CIG) formed by various sanitation districts in the region. In 2018, due to failed efforts to resolve contractual disputes in the Master Agreements with San Jose Santa Clara Regional Wastewater Facility (RWF), CIG filed lawsuits against the cities of San Jose and Santa Clara.

5. Utility Maintenance Fleet Addition ($37,356 one-time) This action funds one F250 with tommy lift gate for the Storm/Sewer Senior Lead. As part of the FY 2021-22 Adopted Budget, the City Council approved the addition of 1.0 Senior Lead position in the Utility Maintenance Division. The Senior Lead is currently using the truck that is assigned to the defunded Equipment Maintenance Worker III (EMWIII) (Storm) position, which is proposed to be restored as part of this budget.

6. Park Maintenance Staffing ($12,362)
This action funds the addition of 3.0 limited term Maintenance Assistants and shifts 1.0 Maintenance Worker III position from the Trees and Landscape Maintenance Function to the Parks Maintenance Function in-lieu of contracting out park maintenance for 10 parks. New total programmatic cost (1.0 Maintenance Worker III,

3.0 Maintenance Assistants and supplies) for enhanced services is $459,153 in comparison with the prior contract service appropriation of $446,791.

7. Landscape Maintenance Staffing ($134,046)
This action funds the addition of 2.0 Maintenance Worker I and one limited term 1.0 Maintenance Assistant to provide enhanced landscape maintenance services. On October 19, 2021, the City Council received a report on the status of Citywide Landscape and Park Maintenance and expressed to enhance the service levels for landscape maintenance. The 1.0 Maintenance Worker I and 1.0 Maintenance Assistant will be deployed to address work requests that are submitted to Public Works which must be completed within established time frames. The second Maintenance Worker I position will provide additional work support when the Maintenance Worker III position is supervising the Parks Maintenance Function.

8. Supervisory Control and Data Acquisition (SCADA) Contract Service ($150,000) This action funds Supervisory Control and Data Acquisition (SCADA) contract service. In October 2020, Council approved a contract with ENGIE to implement energy and water savings measures for the City. One of the Council approved measures is the implementation of SCADA, a remote utility infrastructure monitoring and operation system. SCADA will require ongoing monitoring of network, equipment and systems troubleshooting and maintenance, programming, user upkeep, security maintenance and integration with existing CMMS and GIS systems.

9. Storm Water Maintenance Staffing ($164,802)
This action restores the previously defunded 1.0 Equipment Maintenance Worker III (EMWIII). On February 16, 2021, Council approved to defund multiple vacant positions to offset the budget shortfall, including a vacant EMWIII leadership position in the Utility Maintenance Division. This EMWIII position is responsible for ensuring ongoing operations of mechanical equipment at the City's 13 storm water pump stations; provides Standby coverage and leads storm water pump station emergency response during storms; assists Sewer and Water Pump Station crews when additional staff are needed for large repair and maintenance jobs; and is responsible for building and ground maintenance at the 13 pump station facilities.

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27 Item # 1.

10. Recreation and Community Services Organizational Study ($50,000 one-time) This action provides for one-time funding of an organizational study for the Department of Recreation and Community Services (Department). The Council approved Parks Master Plan Update included a Department cost-recovery policy, which set the cost-recovery goals for certain services provided by the Department. This organizational study will focus on the effective and efficient delivery of these services and the current structure and staff complement.

11. Community Engagement Program Staffing ($77,551)
This action restores the previously defunded Recreation Assistant III with a modified list of duties in response to changes in service demands. As the pandemic continues to dissipate, Council has provided more referrals in the function area of engagement and inclusion such as the forthcoming opening of the Alviso Adobe Building this year, which necessitates the development and oversight of a Docent Program, community-collaborative programs like the Children’s Memorial Garden, Park Champions, and mural programs as well as the development of the cultural/historical program.

12. Part-time Staff Salary Alignment ($27,423)
This action provides funding for temporary Recreation and Community Services (RCS) staff salary increases in response to minimum wage increases to retain experienced PT employees. RCS is increasingly unable to hire and retain part-time staff at the salary rates budgeted. Frequent staff turn-over and lengthy vacancies are making it difficult for the department to maintain its expected outstanding customer service.

Leadership and Strategic Support CSA
(City Council, City Manager, City Attorney, City Clerk, Finance, Human Resources, and Information Technology) Service Level Changes

1. Part-time Staff Enhancement ($32,264)
This action funds 0.5 Staff Assistant to support City Manager's Office (CMO), Mayor and Councilmembers.

The Staff Assistant will provide office coverage and full-time assistance to the entire City Manager's Office staff with various internal and external projects/initiatives to meet the Council priorities.

2. Risk Management Staffing ($145,893)
This action funds 1 Financial Analyst in the risk management section. The Financial Analyst position will be tasked primarily with the development and operation of a robust citywide Risk Management Program including but not limited to analysis of historical claims data, identification of training and policies to minimize reoccurrence of historical claims experience in the future, and liaison with PLAN JPA for integration of risk management best practices into City operations and also strengthening the City's cybersecurity practices.

3. Labor Negotiations Survey ($35,000)
This action funds professional services to conduct a survey of its comparative cities to benchmark classifications in Milpitas Professional and Technical Group (PROTECH) and Milpitas Employee Association (MEA). The contracts for these two bargaining units expire in June 2023, the survey is needed to prepare for labor negotiations.

4. Reclassification of Information Technology Manager ($28,752) This action funds the reclassification of Information Technology Manager to Deputy Director of Information Technology. The Information Technology (IT) Department has grown from 10 positions to 13 positions since Letter of Transmittal

xviii City of Milpitas
28 Item # 1.

FY 17-18. This growth reflects the increased technology needs of the City and the critical role IT plays in supporting all departments to deliver services to the community in an efficient and effective manner.

Currently, the IT Director directly oversees 50% of his staff. So as to more effectively distribute the work and supervisory responsibilities, a reclassification of an existing vacant IT Manager (1 of 3 IT Managers) position is proposed.

5. Enhanced Cellular Service ($37,000)
This action funds additional cellphones to deploy to the Milpitas Police Department. Police Department continuously performs market research for technology products that will improve efficiency and help enhance the law enforcement services delivered to our community. Many products are becoming increasingly mobile and web-centric, and to enable officers’ remote access to these services, the Police Department is looking to deploy approximately 70 smartphones to its officers. The City procured late-model smartphones at discounted pricing which was covered by the IT operating budget. The cellular service cost associated with the citywide cellular services is also in IT’s operating budget. To cover the substantial increase in the service cost for the newly procured devices, funding is requested for the increased annual service cost of approximately $37,000.

6. Office 365 Feature Enhancement ($37,533)
This action funds additional features in Office 365 to improve connectivity and efficiency. On January 25, 2019, Council approved the purchase of Office 365 subscription for a 3-year period. Office 365 subscription includes a suite of essential Office software, as well as the City’s email, online collaboration, communication, and virtual meeting services. IT staff has evaluated various add-on features that will improve productivity and efficiency and determined that the following three new features be added for the next renewal period. The Audio Conferencing feature allows meeting attendees to use traditional phones to dial into the meeting. This allows in-field staff with unreliable or no internet connectivity, and staff without a smartphone to join virtual meetings by dialing a number assigned to a meeting. Mobile Device Management (MDM) feature allows IT staff a centralized oversight of mobile devices, including software license assignments, device configurations, and critical security features necessary to deploy mobile devices for law enforcement. Azure AD Premium is an advanced set of tools that will help IT Staff to better manage the interface between Microsoft services and the City systems. This feature will greatly impact the management efficiency for essential tasks such as remote management of Multi-factor Authentication (MFA).

7. Public Records Act Management Software ($9,500)
This action funds a software platform to manage requests related to the Public Records Act (PRA). As part of the budget strategy in July of 2021, the City Clerk's office took over the PRA request program from the City’s Attorney’s office. The California PRA was created to foster transparency, accountability, and greater public access. When a PRA is received, the City must provide all requested records unless there is a legal basis not to do so. Request for public records can be very broad and the legal exceptions to producing those are very limited. Many requests ask for an expansive range of communications that must be identified by individual employees and then reviewed in detail for responsiveness. As a result of the volume and complexity of these requests, the Clerk’s Office has identified the need to implement an automated Public Records Request system. The automated system will increase efficiency in tracking and managing the workflow of requests from receipt to production. It will centralize all requests for improved staff response and action. The system also includes functions that help staff review responsive documents for privileged or confidential information, resulting in a cost savings of staff time and making responsive documents available to the requestor more quickly.

Letter of Transmittal
City of Milpitas xix
29 Item # 1.

Amendments to Fiscal Policies and Budget Guidelines
As part of the annual budget process, staff reviews the Fiscal Policies and Budget Guidelines, which can be found in a separate section of this budget document. These policies and guidelines set the fiscal framework for the annual budget process and long-term financial decisions. Below please find a summary of changes to the Fiscal Policies and Budget Guidelines. A red line version of the recommended changes will be submitted as part of the staff report for the Operating Budget Study Session on May 10, 2022.

Changes to Fiscal Policies
The City’s Fiscal Policies are broken down into General Financial Goals; Operating Budget, Revenue, and Expenditure Policies; Utility Rates and Fees; Capital Budget Policies; Debt, Reserve, and Investment Policies; and Accounting, Auditing, and Financial Reporting Policies. It is important to note that the City Council also adopted separate debt and investment policies consistent with State law.

This balanced proposed budget remains focused on sound City fiscal policies and to preserving existing reserves.

The proposed changes are minor and provide some flexibility and emphasis to facility, infrastructure and technology needs. The revision to the PERS Stabilization Reserve inserts a confirmation from the City’s actuary for additional contribution from any savings and removes the adjustment for additional costs. This enables the City to incorporate information from the actuary as an additional measure for implementing this policy and reduces adjustments from the reserve without bringing this for Council consideration.

Changes to Budget Guidelines
Through adoption of this budget, the City Council approves the Budget Guidelines found in a separate section of this document. The Budget Guidelines set forth the Basis of Budgeting; Budget Calendar requirements; form and content of the City Manager's Adopted Budget; adoption of the Budget by June 30th; the City Manager’s budget authority; requirement that budget amendments be approved by the City Council; budget transfers and modification procedures; automatic adjustments and re-appropriations; budget monitoring and reporting; and reserve requirements for all funds.

The changes to the Budget Guidelines memorialize the Council direction on August 9, 2021 wherein for ARPA funding, the City Council delegated authority to the City Manager including appropriation and contract approval authority up to the approved amount for each program approved by Council, once compliance with ARPA procurement, contracting and reporting requirements. For budget monitoring and reporting, it includes a quarterly ARPA report for program updates to the City Council.

Reserves
This budget retains the City’s reserves and balance sheet position by not utilizing the contingency reserve, budget stabilization reserve, future year deficit reserve nor PERS stabilization reserve to fund FY 2022-23 appropriations.

Specifically, as of the audited FY2021 reserve balances, the City will retain $85 million of reserves as show below in the “committed” category of $13.3 million, “unassigned” category of $38.1 million and Section 115 Pension Irrevocable Trust of $33.9 million. The table below summarizes the Audited Comprehensive Financial Report (ACFR) for the General Fund balance and considers the footnote for the Section 115 Trust (effective June 30, 2021), which is presented separately from the General Fund in the ACFR.

Letter of Transmittal

xx City of Milpitas
30 Item # 1.

Table 5 – General Fund – Fund Balance FY2017 – FY2021 (Audited balances, $ in Millions) Nonspendable:

Loan receivable $10.3 $0.0 $0.0 $0.0 $0.0
Prepaids, materials, supplies and deposits $0.6 $0.7 $0.7 $0.6 $0.6 Property held for resale $4.2 $4.2 $4.2 $4.2 $4.2
Advance to Other Funds $5.1 $5.2 $5.3 $5.4 $0.0
Subtotal Nonspendable $20.2 $10.1 $10.2 $10.2 $4.8
Committed to:

PERS stabilization* $19.0 $29.9 $33.9 $33.9 $2.8*
Artificial turf replacement $0.0 $0.8 $1.0 $1.2 $1.4
Technology replacement $0.0 $1.0 $2.0 $2.0 $2.0
Facilities replacement $0.0 $2.0 $7.0 $7.0 $7.0
Subtotal Committed $19.0 $33.7 $43.9 $44.1 $13.2*
Assigned to:

Change in investment market values $0.0 $0.0 $0.0 $1.1 $0.0 Uninsured claims payable $2.8 $2.8 $2.8 $2.0 $2.3
Contracts $0.8 $1.2 $3.1 $3.0 $2.4
Other assigned $0.0 $0.0 $0.0 $0.0 $1.8
General government capital projects $4.5 $4.6 $0.0 $0.0 $0.0 Subtotal Assigned $8.1 $8.6 $5.9 $6.1 $6.5
Unassigned: $0.0 $0.0 $0.0 $0.0 $0.0
General Fund Contingency Reserve $0.0 $0.0 $0.0 $17.3 $18.3 Budget stabilization $0.0 $4.0 $9.5 $17.1 $18.3
Future deficit $0.0 $0.0 $0.0 $0.0 $1.5
Unassigned $25.4 $36.5 $31.2 $0.0 $0.2
Subtotal Unassigned $25.4 $40.5 $40.7 $34.4 $38.3
Total fund balances $72.7 $92.9 $100.7 $94.8 $62.8
($ in Million) FY2017 FY2018 FY2019 FY2020 FY2021
*$33.9 million of PERS stabilization are put into a Section 115 Pension Trust on June 30, 2021 at Council’s direction.

Major Development Activities in the City
Milpitas 2040 General Plan – In June 2008, the Milpitas City Council adopted the Transit Area Specific Plan (TASP) to establish a vision for future pedestrian-oriented development in the area surrounding the future Milpitas Transit Center. The TASP also established a strategy for creating a regional transportation hub in Milpitas connecting Valley Transportation Authority (VTA) light rail and regional bus service with the long-awaited extension of Bay Area Rapid Transit (BART) into the South Bay. Consistent with TASP vision and strategy, much Letter of Transmittal
City of Milpitas xxi
31 Item # 1.
of the plan area has transitioned from low-intensity industrial buildings and uses into an emerging new mix of residential, commercial, and office/employment uses at significantly higher densities and intensities of development to create a true transit-oriented community.

In February 2020, the City of Milpitas teamed up with consultants from Urban Field Studio to update the TASP and enhance the plan vision consistent with the City’s new General Plan. This update effort, rebranded as the Milpitas Metro Specific Plan, envisions a robust expansion of the TASP to take advantage of the unique relationship and proximity to both BART and VTA light rail. The Metro Plan will provide clear policy guidance for the future development of nearly 168 acres (48% of the plan area) that have yet to be redeveloped in accordance with the original TASP vision and standards. In addition to providing for a new jobs-rich Innovation District within walking distance of the Transit Center, the Metro Plan will play an important role in the City’s efforts to develop new affordable housing to meet its Regional Housing Needs Allocation (RHNA) from the State of California.

Work is substantially complete on the draft Metro Specific Plan and its associated Subsequent Environmental Impact Report, and both documents will be presented to the City Council for final adoption later this year.

Gateway-Main Street Specific Plan (Midtown Specific Plan Update) – In March 2002, the Milpitas City Council adopted the Milpitas Midtown Specific Plan to establish a framework for redevelopment of the City’s historic Main Street and adjacent areas along the Calaveras Blvd. corridor between Main Street and Interstate 880. The overall strategy for the Midtown area was to create a mixed-use community that includes high-density, transit-oriented housing and a central community “gathering place” while maintaining needed retail and commercial service uses.

The original Midtown Plan was amended in 2008 concurrent with adoption of the Transit Area Specific Plan.

In October 2021, the City of Milpitas teamed up with consultant from Ascent Environmental to update the Midtown Specific Plan with three primary focus areas: South Main Street between Great Mall Parkway and Weller Ave.; Calaveras Blvd. Between Main Street and I-880; and the I-880 frontage along Abbott Ave and Thompson Court.

These three inter-related areas form an important gateway into the City via Highway 237, and the updated Midtown Plan has been rebranded as the Milpitas Gateway-Main Street Specific Plan. The Gateway-Main Street Plan will establish the types, locations, and intensities of land uses to be accommodated within each focus area. A variety of uses will be allowed, including entertainment, retail, civic, cultural, office, and high-density mixed-use residential in a compact, walkable, and unique centralized setting. Work is now underway in preparation of the existing conditions report and urban form analysis, and the Plan’s estimated completion date is June 2023.

Economic Development Strategy – Economic Development and Job Growth is a key City Council priority, which is vital to the health of the local economy. The City Council adopted the Economic Development Strategy and Implementation Actions report (EDS) on May 5, 2020 to serve as Milpitas’ road map to grow and diversify the City’s economy, support businesses and workers, and improve quality of life in the community. Staff has executed several implementation actions of the EDS. Accomplishments include, but are not limited to, business attraction/ retention/expansion, Fiscal Benefits of Employment Lands Study as part of the Innovation District, COVID-19 Workforce Recovery Program, launched the International Trade and Commerce Program, regional Hotel and Travel Report, and hosted the 5th Annual Manufacturing Day. The Office of Economic Development is engaged in various American Rescue Plan Act (ARPA) Economic Vitality Investment Framework actions including the Small Business Assistance Grant Program, Hotel Grants, Milpitas Chamber of Commerce Financial Assistance, and Workforce Development focused on various programming categories that include at-risk youth, youth and adult, green/sustainable jobs, childcare workforce and to partner with the unhoused population on community beautification. Staff will continue to work on the ARPA funded Storefront Improvement Grant Program and will partner with a consultant on a Business Improvement District (BID) feasibility analysis as part of the ARPA Main Street Revitalization efforts.

Residential Development – The City approved several new residential and mixed-use projects in FY 2021-22.

Within the Milpitas Metro Area, the City approved an 85-unit multi-family residential project (100% affordable) by Letter of Transmittal

xxii City of Milpitas
32 Item # 1.

Pacific Communities at 308 Sango Court and a 32-unit townhome project by the True-Life Company at 2001 Tarob Court. Within the Metro Area, construction will also soon be underway on a 102-unit multifamily residential project (100% affordable) at 355 Sango Court as well as a 213-unit mixed-use residential-commercial project at 1320 McCandless Drive (The Fields – Elion). In addition, construction will soon be completed on a 216-unit mixed-use residential-commercial project at 720 Montague Expressway (Lantana) as well as a 213-unit mixed- use residential project at 1400 McCandless Drive (The Fields – Gideon). Several other townhome projects are currently making their way through the development review process.

Non-residential Development – In FY 2021-22, the City approved several new non-residential development projects. In August 2021, Stratford Schools received approval to convert the former Orchard Supply Hardware store at 125 North Milpitas Blvd. into a new private early education facility for up to 480 students, kindergarten through 2nd grade. This project is now under construction and includes exterior alterations to the building façade, development of two outdoor play areas, and site improvements such as new fencing and parking lot upgrades for efficient circulation and access. In March 2022, Stratford also completed renovations to an existing office building at 25 Corning Street and opened that facility for up to 576 students. In September 2021, the City approved plans for a new 216-room business hotel at 1851 McCarthy Blvd. The five-story hotel will include an 11,000-square foot outdoor pool and patio courtyard, a 3,750-square foot indoor meeting area, a 2,227-square foot dining area, a 1,312-square foot bar and lounge, and a one-story, ground-floor parking garage with space for 241 vehicles. The City also approved two new commercial childcare facilities and the expansion of several local retail businesses. In addition, vital business attraction and investment efforts are underway in Milpitas. The following businesses have signed leases for space in Milpitas: Apple, Amazon, Corsair Gaming, Weee!, Virtusa Corporation, Advanced Energy Industries, SMTC Manufacturing, and Socionext. These new Milpitas businesses will create new jobs and generate sales tax revenues through business-to-business relationships.

Conclusion
I submit this Proposed FY 2022-23 Budget with tempered optimism for your consideration. We are pleased to restore and enhance priority service areas during this recovery and will continue to monitor the situation for timely decisions.

We remain committed to leveraging the Federal ARPA funds to aid the community and maintain fiscally sound policies to fund City reserves and continue long-term planning. This balanced budget provides a portfolio of essential City services and infrastructure funding. Staff will present the Proposed Budget on May 10 with the goal of budget adoption on June 7. Throughout this process, we seek Council, community, and employee feedback to inform the budget development.

This budget could not be accomplished without the tremendous work of the Executive Leadership Team and their staff as well as the Finance Department for helping me maneuver through this Pandemic and developing this budget. However, we only arrived at this juncture through the foresight, leadership and direction of the Mayor and Members of our City Council, for which I am grateful. With your guidance, Milpitas has successfully navigated through this uncertainty we experienced and is poised to continue our recovery.

Respectfully submitted,

Steven G. McHarris
City Manager
Letter of Transmittal
City of Milpitas xxiii
33 Item # 1.

Letter of Transmittal

xxiv City of Milpitas
34 Item # 1.

Organization Chart
*Fire Prevention (Fire Department) and Land Development (Engineering Department) are part of Community Development. †Temporary placeholder positions, final positions to be determined by City Council and City Attorney City Profile
City of Milpitas 1
35 Item # 1.

History
Before roads were carved and houses were built,
Milpitas and its surrounding areas were home to
Native Americans in the Costanoan and Ohlone
tribes. Living off the bounty of the land around San
Francisco Bay, the Costanoans and the Ohlones
prospered for hundreds of years long before
Mexican or Spanish immigrants came to conquer
the land.

In the 18th century, Spanish explorers surveyed the
land and were the first to give Milpitas its name -
milpa - or little cornfields. Three large ranches
began, and two families, the Alvisos and the
Higueras, built adobes in the mid-1800s which still
stand today.

In 1850, the California Gold Rush began, and
“American” settlers started taking over the region. In
1852, a settler from Ireland, Michael Hughes, built
the first redwood-framed house in what is now
Milpitas. Soon after, the first school was built, and by 1857, Milpitas had a hotel, general store and a post
office.

Fruit orchards began to spring up in the 1870s, and
later the region was known for its hay growing. The
population continued to grow into the 1880s and
settlers numbered over 1,500. But by the turn of the
century, only about a third of those people remained.

Populations would remain low until shortly after
World War II, when Western Pacific Railroad bought
a 300 acre industrial park within the city and Ford
Motor Company announced it would shift its
manufacturing plant from Richmond (just north of
Oakland) to Milpitas. The population grew to 825.

Sewer and water service, and fire protection were
set up shortly after, as was one of the country’s first integrated housing communities.

On January 26, 1954, the city was officially
incorporated, after fighting off annexation attempts
by neighboring San Jose. Ten years later,
populations grew to 7,000.

Following the computer firm boom of the 1980s and
the opening of one of the nation’s largest malls in
1994, the city is now home to 82,746 residents1.

Photos courtesy of: Eliren Pasion
History courtesy of: The Milpitas Post
City Profile
2 City of Milpitas
36 Item # 1.

Demographic Profile
Population
Once a small agricultural town and later a stopover point for travelers between Oakland and San Jose, Milpitas has blossomed into one of the world’s premier computer and semiconductor producers. Tenants of the burgeoning city of 82,746 are family-centered communities that embrace cultural diversity, quality schooling, and conveniently located neighborhood parks and shopping centers. The table below reflects estimated City population based upon Census annual growth assumptions, with the exception of 2020, which was based upon the actual 2020 Census that determined the City population to be 80,273. The 2019 to 2020 decline reflects an overestimation of annual growth leading into the 2020 Census.

Population
2013 2014 2015 2016 2017 2018 2019 2020 2021* 2022* 2023* 60,000
65,000
70,000
75,000
80,000
85,000
90,000
*US Census Estimates plus growth factor of ten year historical average Development
Incorporated in 1954 with 825 residents, Milpitas is
located at the southern tip of the San Francisco Bay
and in Silicon Valley. City covers 13.6 square miles,
with grassy foothills and picturesque Mount Hamilton
to the east and the Santa Clara Valley floor to the
west. The city is located in Santa Clara County, home
to approximately 1.9 million residents. To the north is the city of Fremont. To the south lies San Jose, the
third largest city in California. As of 2019, Milpitas had an existing inventory of approximately 14.5 million
square feet of office, R&D, and manufacturing
space.1 This inventory is flexible and includes a
diversity of building types and sizes, which can
accommodate businesses in need of different types
of spaces. About 5.5 million square feet of warehouse
and distribution space existed in Milpitas in 2019.2
Milpitas has a large and diverse offering of retail
stores and restaurants, mostly concentrated in
suburban-style shopping centers. As of 2019, Milpitas
had nearly 5 million square feet of retail, of which
three quarters was located in retail centers of
different sizes and trade areas.2 Milpitas has an
ethnically diverse array of retail and restaurants, and a significant portion of retail in Milpitas is specialized in Asian products. Milpitas has major regional retail
destinations that attract shoppers from beyond the
city. The largest centers are the Great Mall, a 1.4
million square feet super-regional mall, and McCarthy
Ranch, a 415,000 square feet power center.2
City Profile
City of Milpitas 3
37 Item # 1.

Employment
With over 40,800 jobs8 and 39,600 employed residents, Milpitas is a jobs rich community.3 The two largest employers in Milpitas are Cisco Systems with over 3,000 employees and KLA with over 2,000 employees.3 Other major employers are, Flex, Headway Technologies and Milpitas Unified School District. Several of these top employers have made Milpitas their corporate headquarters location. The largest percentage of the Milpitas workforce, approximately 26%, are employed in professional, scientific, and management, and administrative and waste management, 23% manufacturing, and approximately 16% educational services, and health care and social assistance.4
The City’s largest own-source revenue is property tax. Top ten property tax payers are shown below:5

Principal Property Tax Payers: Fiscal Year 2021-22
Taxpayers Taxable
Assessed Value1
% of Total City
Assessed Value

1. Cisco Systems Inc. $502,128,423 2.46%

2. KLA Tencor Corporation 465,867,697 2.28%

3. Milpitas-District 1 Owner LLC 345,971,636 1.69%

4. Milpitas Mills LP 345,901,346 1.69%

5. Sandbox Expansion LLC 244,429,905 1.2%

6. McCarthy Center Holdings LLC 199,182,830 0.98%

7. Amalfi Milpitas LLC 172,689,312 0.85%

8. Lago Vista Milpitas LLC 172,078,619 0.84%

9. Essex Portfolio LP 166,647,097 0.82%

10. Anton Milpitas LLC 164,604,890 0.81%
Total $2,779,501,755 14%
1 The total City assessed valuation for fiscal year 2021-22 is $20,427,309,061.

Source: California Municipal Statistics, Inc.

Community
At 20 feet above sea level, Milpitas’ mild climate averages 59 degrees, with gentle winds from the northwest and little more than 13 inches of rain expected in a typical year. Milpitas’ neighborhoods are dotted with over 20,000 households and well-placed parks. Thirty-two community parks are maintained by Milpitas, in addition to one dog park and 21 tennis courts. The City provides a multitude of outstanding recreational opportunities, including aquatics, cultural arts and theater, sports leagues and activities, youth programming, and senior activities and services. Milpitas’ median household income is $137,000.6 City Profile
4 City of Milpitas
38 Item # 1.

Housing4
Close to 63.7 percent of Milpitans own their own home. The median gross rent in Milpitas is $2,626. The median price of a single family residence as of February 2022 in Milpitas is $1,583,000. About 22.1 percent of the city's population are under 18 years of age. About 78 percent of the population are 18 years and over. About 12 percent of residents are 65 years and over.

Medium Home Price (in thousands)
$ (thousands)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
Education
The Milpitas Unified School District operates ten elementary schools (K-6), two middle schools (7-8), two high schools (9-12), one continuation high school, and one adult education school. The district employed over 500 individuals on a full-time basis to serve approximately 10,000 students as a Pre K-12 grade school system.7 School Enrollment
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
9,800
10,000
10,200
10,400
City Profile
City of Milpitas 5
39 Item # 1.

Facts About Our Residents
According to census data, an
estimated 68.1 percent of residents
are Asian; 14.5 percent are White;

13.8 percent are Hispanic or Latino;
and 3.5 percent are Black.

According to the 2014-2018
American Community Survey, 52%
of Milpitas residents are foreign born
compared with 39% of residents in
Santa Clara County and 27% of
residents in California.

Asian

68.1%
White

14.5%
Other

0.01%
Hispanic

13.8%
Black

3.5%
Government

The bustling general law city is supervised by a
council-manager form of government. The Milpitas
City Council is the flagship decision making body
that appoints members to many commissions that
serve in advisory capacities. The mayorship is an
elected position, as are all the council seats. Mayors
serve two-year terms; council members have four-
year seats.

The City Council makes the ultimate planning and
policy decisions for residents, and oversees the
city’s $208 million budget. The five members carry
out twice a month public meetings. At these times,
the public’s comments are usually heard, under the
citizen’s forum.

The Council’s meetings are held the first and third
Tuesdays of each month at 7:00 p.m. in the
Milpitas City Hall, 455 E. Calaveras Blvd.

There are 12 advisory commissions on which
residents can participate - the Planning
Commission, Arts Commission, Youth Advisory
Commission, Library and Education Advisory
Commission and Senior Advisory Commission, to
name a few.

Issues challenging most commissions these days
are development, quality of life and how to
streamline traffic bottlenecks that plague this area
at commute times.
1 July 1, 2022 population estimated by City using U.S. Census estimates growth rate 2 City of Milpitas Economic Development Strategy and Implementation Actions Report (May 2020) 3 California EDD (February 2022)
4 2020 ACS 5-Year Estimates Data Profiles
5 HdL Coren & Cone
6 Santa Clara County Association of Realtors, Marketing Housing Statistics, February 2022 7 https://dq.cde.ca.gov/dataquest/
8 The decline is due to different reporting methodology. In prior budgets, a different data set was used that included jobs held by non-Milpitas residents.

City Profile
6 City of Milpitas
40 Item # 1.

Milpitas at a
Glance

Date of Incorporation:

January 26, 1954
Form of Government:

Council-Manager
Population (estimated*) 82,746
Land area (Square Miles) 13.6
Miles of Streets 308
Number of Street Lights 4,516
Fire Protection
Number of Stations 4
Number of Firefighters 64
Fire Apparatus 13
Number of Fire Hydrants 2,308
Police Protection
Number of Stations 1
Number of Substations 1
Number of Sworn Officers 93
Number of Crossing Guard Posts 38
Number of Police Patrol Vehicles 30
Employees - FY 23 Budget
Permanent 440.5
Temporary (FTE) 80.3
*July 1, 2022 population estimated by City using U.S.

Census estimates growth rate
City of Milpitas - Finance
City of Milpitas - Fire
City of Milpitas - Information Technology
City of Milpitas - Police
City of Milpitas - Public Works
City of Milpitas - Recreation and Community
Engagements
Water Utility
Number of Customers
Residential 14,728
Commercial 2,232
Recycled Water 236
Average Daily Consumption
(in million gallons)
Potable Water 7.49
Recycled Water 1.01
Miles of Water Mains 206
Sewer Utility
Miles of Sanitary Sewers 173
Miles of Storm Drains 99
Public Schools Serving the
Community
Elementary Schools 10
Middle Schools 2
High Schools 2
Community College Extension 1
Parks and Recreation
Acres of Parkland 153.81
Number of Parks 36
Number of Playgrounds 33
Number of Tennis Courts 21
Number of Swimming Pools 3
Map
The City of Milpitas is located near
the southern tip of San Francisco
Bay, forty-five miles south of San
Francisco. Milpitas is often called
the “Crossroads of Silicon Valley”
with most of its 13.63 square miles
of land situated between two major
freeways (I-880 and I-680), State
Route 237, and a county
expressway.

A light rail line opened for service in
2004 and an extension of BART,
including a major multi-model
station opened for service in June
2020.

City Profile
City of Milpitas 7
41 Item # 1.

City Profile
8 City of Milpitas
42 Item # 1.

FY 2023-2032 Ten-Year General Fund Financial Forecast
Starting with the FY 2021-22 Budget, staff developed a Ten-Year General Fund Financial Forecast to highlight long-term impacts of projected revenues and expenditures primarily to enhance the City's fiscal long-term stability and pension costs management. When the California Public Employees Retirement System (CalPERS) changes the actuarial assumptions of the pension portfolio, such as lowering the interest earning or demographic assumptions, such changes become fully effective seven years after CalPERS Board approval. In addition, Measure F is an eight-year tax measure, consequently, long-term forecasts provide an invaluable planning tool to understand the fiscal implications of today’s budget actions and are an indication of sound fiscal planning and strategy.

The table below shows the FY 2023-2032 Ten-Year General Fund Financial Forecast starting with the FY 2022-23 Proposed Budget. Over the ten years of the Forecast based on information available in March, staff projects annual surplus and deficits between $1.4 million and -$11.2 million. With the sunsetting of Measure F effective April 1, 2029, deficits are anticipated starting with FY 2029-30. Therefore, to prevent service reductions, the City continues with economic development, cost management and innovations. The table below also includes the information on the City’s current year Adopted Budget for FY 2021-22. Revenues and other Sources includes taxes, fees, overhead charges and use of reserves, as applicable. Uses includes personnel and non-personnel expenditures, debt service and contributions to reserves, as applicable.

Table 1 – FY 2023-2032 Ten-Year General Fund Financial Forecast - Overview ($ in millions) Revenues and Other
Sources $110.8 $117.7 $124.0 $130.1 $134.4
Expenditures (110.8) (117.7) (122.6) (126.8) (130.5)
Annual Surplus/
(Deficit) $0.0 $0.0 $1.4 $3.3 $3.9
FY 21-22
Adopted Budget
FY 22-23
Proposed Budget
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
Revenues and Other
Sources $138.8 $143.6 $146.6 $146.0 $148.9 $153.6
Expenditures (135.2) (139.5) (145.8) (152.0) (158.9) (164.8) Annual Surplus/
(Deficit) $3.6 $4.1 $0.8 ($6.0) ($10.0) ($11.2)
FY 26-27
Forecast
FY 27-28
Forecast
FY 28-29
Forecast
FY 29-30
Forecast
FY 30-31
Forecast
FY 31-32
Forecast
The following sections discuss the year-over-year change between the FY 2021-22 Adopted Budget, as amended on February 15th, 2022 and the FY 2022-23 Proposed Budget as well as assumptions embedded in the FY 2023-2032 Ten-Year General Fund Financial Forecast for major revenue and expenditure categories.

Ten-Year General Fund Financial Forecast
City of Milpitas 9
43 Item # 1.

Revenues and Other Sources
Table 2 – FY 2023-2032 Ten-Year General Fund Financial Forecast – Revenues and Other Sources ($ in millions)
Revenues/Sources
Property Taxes $41.3 $42.6 $44.3 $46.6 $48.4
Sales & Use Tax 25.6 27.5 28.5 29.1 29.7
Sales Tax – Measure F 6.3 6.4 6.6 6.7 6.9
Transient Occupancy Tax 7.7 8.3 9.4 9.9 10.2
Licenses, Permits & Fines 10.3 11.5 13.0 14.1 14.6 Charges for Services 4.2 5.9 6.5 6.7 6.9
Franchise Fees 5.8 5.4 5.6 5.8 6.0
Use of Money and Property 0.5 0.4 0.4 0.4 0.4
Other Taxes 1.0 1.1 1.1 1.1 1.1
Intergovernmental 1.2 1.0 0.2 0.2 0.2
Other Revenues 0.4 0.4 0.4 0.4 0.4
Operating Transfers In 6.6 7.2 8.0 9.0 9.6
Budget Stabilization Reserve 0 0 0 0 0
Total Revenues/Sources $110.8 $117.7 $124.0 $130.1 $134.4 FY 21-22
Adopted
Budget
FY 22-23
Proposed
Budget
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
Revenues/Sources
Property Taxes $50.2 $52.1 $54.0 $56.1 $58.2 $60.4 Sales & Use Tax 30.3 31.1 31.9 32.7 33.5 34.3
Sales Tax – Measure F 7.0 7.2 5.5 0.0 0.0 0.0
Transient Occupancy Tax 10.5 10.8 11.1 11.4 11.8 12.1 Licenses, Permits & Fines 15.2 15.7 16.3 16.9 17.5 18.1 Charges for Services 7.1 7.3 7.6 7.8 8.0 8.2
Franchise Fees 6.1 6.3 6.5 6.7 7.0 7.2
Use of Money and Property 0.5 0.5 0.5 0.5 0.5 0.5 Other Taxes 1.2 1.2 1.2 1.2 1.3 1.3
Intergovernmental 0.2 0.2 0.2 0.2 0.2 0.2
Other Revenues 0.4 0.4 0.4 0.4 0.4 0.5
Operating Transfers In 10.2 10.8 11.4 12.1 10.6 10.8 Deficit Reserve 0.0 0.0 0.0 0.0 0.0 0.0
Total Revenues/Sources $138.8 $143.6 $146.6 $146.0 $148.9 $153.6 FY 26-27
Forecast
FY 27-28
Forecast
FY 28-29
Forecast
FY 29-30
Forecast
FY 30-31
Forecast
FY 31-32
Forecast
Ten-Year General Fund Financial Forecast
10 City of Milpitas
44 Item # 1.

Property tax revenues are estimated to be $42.6 million in FY 2022-23, an increase of $1.4 million, or 3.3%, compared to the FY 2021-22 Adopted Budget of $41.3 million. Excess ERAF (Educational Revenue Augmentation Fund) of $2.2 million was included for FY 2022-23 and a increase in FY2023-24 by $1.7 million, or 4%, from estimated FY2022-2023 ERAF, based on recent developments and 30% contingency. Excess ERAF is the mechanism that moves state funds through the County system. The California Legislature created the Educational Revenue Augmentation Fund in 1991 to reduce state general fund spending on schools, therefore a portion of property tax revenue goes to ERAF to support local school districts. The Excess ERAF formula for allocation to cities is based on various factors, mainly the countywide property tax growth, Redevelopment Agency assets sale, department of education’s local control funding formula, school districts attendance rate, and special education charges. Staff develops the Property Tax revenue estimates based on information provided by the City’s property tax consultant and the County of Santa Clara. For FY 2023-24, staff has built in a slight increase of property tax revenue estimates returning to historical annual growth rates over the remainder of the Forecast between 2.5% and 4.0%.

Proposition 13 limits the base property tax rate to 1% of the assessed value and an annual increase of the assessed value at the lesser of 2% or the California consumer price index (CCPI). Based on a 10-year average, staff estimated that the California consumer price index in the San Francisco/San Jose metropolitan area will likely increase at a rate of 2 to 5% in each of the next five years and therefore the 2% limit of Proposition 13 will apply. Added assessed valuation from new housing and the reassessment of existing properties with change of ownerships are factored into the forecast.

Allocation of Property Tax 1% Base Rate
The chart below shows the allocation of the property tax 1% base rate to all the taxing entities within the jurisdiction. The City's share is approximately 16.2% of the 1% base rate.

Chart 1: Property Tax Allocation by Percent among various Governmental Entities K-12 School Districts

40.1%
City

16.2%
Community College

6.5%
County
14%
County School Service

3.2%
ERAF K-12/College

14.8%
Special Districts

5.2%
Ten-Year General Fund Financial Forecast
City of Milpitas 11
45 Item # 1.

Sales tax revenue is projected to be $27.5 million in FY2022-23, an increase of $1.9 million, or 7.4% compared to FY2021-22 Adopted Budget of $25.6 million. At the February 15th City Council meeting, the City Council approved the increase of the FY2021-22 revenue estimate for sales tax in amount of $1.0 million, or 3.9%, from $25.6 million to $26.6 million. In comparison to the FY2021-22 Amended Budget, the revenue estimate for the FY2022-23 Proposed Budget is expected to increase by $0.9 million, or 3.3%, from $26.6 million to $27.5 million.

With the lifting of the shelter-in-place order and mask mandates, consumer spending is assumed to return to more sustained levels. An annual historical growth rate between 2.0% and 2.9% is projected for the remainder of the Forecast. The projected increase is mostly based on estimates from the City’s sales tax consultant.

The chart below shows the allocation of sales tax rate among the taxing jurisdictions. The City's share of the total sales tax rate is one percentage point.

Chart 2: 9.25% Sales Tax Allocation by Percentage Points among various Governmental Entities Allocation of Sales Tax - 9.25%
City
1%
City
Measure F

0.25%
County Transportation Fund

0.25%
County Transit:

VTA 1976

0.5%
County Transit:

VTA 2000

0.5%
County Transit:

VTA 2008 Measure B

0.125%
State of California
6%
Santa Clara County
Measure A 2018

0.125%
Santa Clara County
Measure B 2016

0.5%
Measure F ¼ Cent Local Sales Tax, approved by the voters of the City of Milpitas in November 2020 with an eight-year sunset clause, is projected to be $6.4 million in FY2022-23. The City of Milpitas Public Services Measure provides funding to maintain the City’s finances and services including: police and fire protection, 9-1-1 emergency response, and natural disaster preparation; youth, senior, and recreation services; repairing park equipment and maintaining parks and recreation centers; and attracting and retaining local businesses.

Ten-Year General Fund Financial Forecast
12 City of Milpitas
46 Item # 1.

Transient Occupancy Tax (TOT), or Hotel/Motel tax Revenues, is projected to be $8.3 million in FY2022-23, an increase of $0.6 million, or 8.0% compared to FY2021-22 Adopted Budget of $7.7 million. The COVID-19 Pandemic continues to impact the travel and hotel industry. At the February 15th City Council meeting, the City Council approved a reduction of the FY 2021-22 revenue estimate for TOT in the amount of $0.2 million, or 3.2%, from $7.7 million to $7.5 million– primarily due to the delayed opening to two new hotels. In comparison to the FY 2021-22 Amended Budget, the revenue estimate for the FY 2022-23 Proposed Budget is expected to increase by $0.9 million, or 11.5% from $7.5 million to $8.3 million. This Forecast further assumes that the travel and hotel industry will never regain the occupancy levels as assumed prior to the Pandemic. TOT revenue estimates are projected to increase between 3.0% and 4.5% for the remainder of the Forecast.

Licenses and permits consist of building permits and fire permits which are primarily construction related.The estimated revenue for licenses and permits, for the FY 2022-23 Proposed Budget is $11.5 million. It is projected to increase by $1.6 million, or 15.8% from $9.9 million to $11.5 million in comparison to the FY 2021-22 Amended Budget (an increase of $1.2 million, or 11.8%, from the FY2021-22 Adopted revenue estimates of $10.3 million).

Thereafter, it is projected that these revenues will resume pre-recession levels by FY 2023-24, primarily due to continued interest in residential developments in the Transit Area, and annual growth rates around 3.5% based on the assumed annual growth rate of personnel cost increases.

Charges for Services are primarily user fees, including charges for private development related services, engineering fees and recreation service charges.The FY 2022-23 estimated revenue from Charges for Services is $5.9 million, an increase of $1.2 million, or 25.5%, to FY 2021-22 amended revenue estimates of $4.7 million (an increase of $0.5 million, or 10.9%, from the FY 2021-22 adopted revenue estimates of $4.2 million). Charges for Services is projected to increase between 2.5% and 2.8% for the remainder of the forecast. As demand for recreation services increases over the next few years, expenditures and revenues will be adjusted accordingly.

Franchise Fees are a regulatory fee charged to utility companies for the privilege of doing business in the City of Milpitas (i.e.: garbage franchise fee, gas and electric franchise fee). The FY 2022-23 estimated revenue from Franchise Fees is $5.4 million, a decrease of $0.3 million, or 5.3%, compared to FY 2021-22 Adopted Budget revenue estimates of $5.8 million. The decrease in Franchise Fees is primarily due to the decline in Cable Television franchise fee revenues. Franchise Fees are projected to increase an average of 3.0% for the remainder of the Forecast.

Use of Money and Property includes interest earnings on the City’s cash pool. The City expects a decrease of $0.1 million, or 17.2%, from the FY 2021-22 estimate of $0.5 million to the FY 2022-23 estimate of $0.4 million due to the declining interest rate environment.

Other Taxes include real estate transfer tax and business license tax. As residential units are being developed and occupied, it is anticipated that the City will collect more real estate transfer tax. Due to the Pandemic, there has been a slight decrease in revenues, therefore the FY 2022-23 estimated revenue from Other Taxes is $1.1 million, a slight increase of $0.04 million, or 4.3%, compared to FY 2021-22 Adopted Budget of $1.0 million.

Average annual increases of 3.0% are projected for the remainder of the Forecast.

Ten-Year General Fund Financial Forecast
City of Milpitas 13
47 Item # 1.

Intergovernmental represents the revenue account for federal and state grants. The main grant sources for the City include the annual Community Development Block Grants allocation and the three-year SAFER Grant for the addition of six Firefighter positions effective October 2019. In FY2021-22, the City also received Coronavirus Relief Funds. The FY2022-23 estimated revenue for Intergovernmental is $1.0 million, a decrease of $0.2 million, or 13.2%, from FY2021-22 Adopted Budget of $1.2 million.

Operating Transfers In are mainly reimbursements from other funds for the staff support and administrative services provided by the General Fund. These costs are determined through a methodological allocation process (known as the Cost Allocation Plan, or CAP). Net transfers into the General Fund will increase in conjunction with operating expenditure increases, an average of 3.4% annually over the Forecast period. Operating Transfers are projected to be $7.2 million in FY 2022-23, an increase of $0.6 million, or 9.4%, compared to FY 2021-2022 Adopted Budget revenues estimates of $6.6 million.This increase was primarily due to an increase in operating transfer in from Community Facility District (CFD) 2008 of $0.5 million.

Expenditures
Table 3 – FY 2022-2032 Ten-Year General Fund Financial Forecast - Expenditures ($ in millions) Expenditures
Salaries $54.1 $57.8 $60.3 $62.3 $64.2
Benefits 34.3 35.8 37.1 38.1 38.7
Services & Supplies 21.0 22.3 22.9 24.1 25.2
Debt Services 1.0 1.2 1.2 1.2 1.3
Capital Outlay 0.0 0.4 0.3 0.3 0.3
Operating Transfers Out 0.3 0.3 0.8 0.8 0.8
Total Expenditures $110.8 $117.7 $122.6 $126.8 $130.5 FY 21-22
Adopted
Budget
FY 22-23
Proposed
Budget
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
Expenditures
Salaries $66.1 $68.1 $70.2 $72.3 $74.5 $76.8
Benefits 39.9 40.9 43.2 45.5 48.0 49.4
Services & Supplies 26.7 28.0 29.8 31.5 33.8 36.0 Debt Services 1.3 1.4 1.4 1.4 1.4 1.4
Capital Outlay 0.3 0.3 0.3 0.3 0.4 0.4
Operating Transfers Out 0.8 0.8 0.8 0.8 0.8 0.8
Total Expenditures $135.2 $139.5 $145.8 $152.0 $158.9 $164.8 FY 26-27
Forecast
FY 27-28
Forecast
FY 28-29
Forecast
FY 29-30
Forecast
FY 30-31
Forecast
FY 31-32
Forecast
Ten-Year General Fund Financial Forecast
14 City of Milpitas
48 Item # 1.

Salaries and Benefits is projected to increase due to scheduled salary increases along with related benefit increases. As part of Council approved actions related to American Rescue Plan Act (ARPA), 4 Firefighter/ Paramedics, 2 Police Officers and 1 Program Coordinator were funded earlier than originally planned. Consistent with FY 2021-22 Adopted Budget actions, 1 Human Resource Technician and 1 Information Technology Analyst were funded effective January 1, 2022 and July 1, 2022, respectively. With these actions, the FY 2021-22 Amended Budget funded position count increased by 9 positions from 415.50 FTEs to 424.50 FTEs. This Budget proposes to increase the position count by 16 FTEs, which includes the restructure of City Attorney Office, to 440.50 FTEs. Of the $5.1 million salaries and benefits increase, approximately $2.6 million is related to scheduled cost of living adjustment and $2.5 million is related to added/restored positions. Based upon current contract, the scheduled COLA are as follows: MEA (3% 7/1/2022), PROTECH (3% 7/1/2022), MidCon (2% 7/1/2022), IAFF (2% 1/1/2023), MPOA (2.5% 7/1/2022), UNREP (3% 7/1/2022).

The California Public Employees Retirement System (CalPERS) annually provides member agencies with an actuarial valuation of member agencies’ pension plans. The City has two pension plans with CalPERS, the Safety Plan for sworn Police and Fire Department employees and the Miscellaneous Plan for non-sworn employees working in all City Departments. For FY 2022-23, the City budget reflects pension contribution costs based on the most recent actuarial valuation available by CalPERS dated July 2021. These valuations are based on data, including payroll data, as of June 30, 2020. Often, due to increased positions and granted salary increases per MOUs with the City’s bargaining units, the budgeted payroll data is higher than CalPERS' assumption in its valuations.

In Fiscal Year 2015-16, CalPERS started to change its pension contribution methodology for agencies. Agencies are being charged a flat fee for the unfunded accrued liability (UAL), which is not based on a percent of payroll, and the normal cost of the pension benefit, which is based on a percent of payroll. Normal cost is the percentage of payroll that is required to fully fund the annual cost of service for the upcoming fiscal year for active employees only. Unlike normal costs, UAL represents outstanding funding needed for services provided by active or former City employees. The UAL is impacted when current plan benefit, demographic assumptions (retiree longevity), or assumed rate of investment earnings change, or when CalPERS does not meet or exceed its investment earnings target.

The charts below were part of the report titled “CalPERS Actuarial Analysis – 6/30/20 Valuation” prepared by Bartel and Associates, the City’s actuary. With a 50% probability, the City’s Sworn Plan contribution percentages will peak in just over 10 years at 59% of payroll; similarly, the City’s Miscellaneous Plan contribution percentages will peak in just over 10 years at 32% of payroll. By the end of the Forecast Period, based on information from the City’s actuary, staff projects that the City’s pension contributions will be $33.9 million for all funds and $30 million for the General Fund. In Fiscal Year 2021, CalPERS experienced significantly higher than expected return of

21.3%. Consequently, the return lowered overall unfunded accrued liability (UAL) for out years, reducing contribution rates . Currently, the retirement plan has three tiers based on the hire date of the employee. Tier 1 consists of employees hired before October 9, 2011. Tier 2 consists of employees hired on or after October 9, 2011. Lastly, PEPRA (Public Employees' Pension Reform Act), applies to employees hired on or after January 1, 2013. Tier 1 and 2 retiree benefits are significantly more costly than the PEPRA tier because PEPRA has a much lower pensionable compensation cap. Accordingly, as the chart for both pension plan shows, due to the demographic changes of the plans’ population over the next 30 years as Tier 1 and 2 member population declines, the pension contributions as a percent of payroll are expected to decline substantially.

Ten-Year General Fund Financial Forecast
City of Milpitas 15
49 Item # 1.

Chart 3: Miscellaneous and Safety Plans Contribution Projections as a Percent of Payroll (Bartel & Associates, January 2022)
Pension Contribution Projection - Percent of Pay
35%
32% 31% 33% 32% 32% 31%
26%
22%
12% 10% 10% 10% 10% 9%
59% 57% 56% 59% 61% 59% 58%
51%
46%
31%
18% 16% 15% 15% 15%
Miscellaneous Pension Plan Safety Pension Plan
22/2323/2424/2525/2626/2727/2828/2929/3030/3131/3232/3333/3434/3535/3636/3737/3838/3939/4040/4141/4242/4343/4444/4545/4646/4747/4848/4949/5050/5151/52 0%
20%
40%
60%
80%
On March 3, 2020, the City Council reviewed the City's Pension Actuarial Report and directed staff to return to City Council with the necessary documents for the establishment of a 115 Pension Trust to invest reserve funds set aside to pay future pension obligations. After a competitive procurement process and a detailed legal review, staff brought forward a plan for Council consideration and awarded the contract to PFM to establish a Section 115 Trust with the $33.9 million CalPERS reserve. The charts below were prepared by Bartel & Associates to demonstrate scenarios where annual withdrawal from Section 115 Trust is used to stabilize contribution rates to smooth out the peak years for Miscellaneous and Safety plans.

Chart 4: Payment to 115 Trust - Miscellaneous Contribution Rate Projection (Bartel & Associates, January 2022)
Payment to 115 Trust - Miscellaneous. Contribution Rate Projection

41.4%

28.8% 28.8% 28.8% 28.8% 28.8% 28.8% 28.8%

25.5%

21.6%
12%

41.4%

34.4% 31.8% 30.8% 32.8% 32.3% 31.5% 30.7%

25.5%

21.6%
12%
Target Contribution Rate 50th Percentile
21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 33/34 34/35 35/36 36/37 37/38 38/39 39/40 40/41 41/42

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%
Ten-Year General Fund Financial Forecast
16 City of Milpitas
50 Item # 1.

Chart 5: Payment to 115 Trust - Safety Contribution Rate Projection With EE Cost Sharing (Bartel & Associates, January 2022)
Payment to 115 Trust - Safety. Contribution Rate Projection With Employee Cost Sharing

57.7%

51.0% 51.0% 51.0% 51.0% 51.0% 51.0% 51.0% 49.2%

44.1%

29.9%

57.7% 57.6% 56.1% 54.6% 57.6% 59.2% 57.9% 56.5%

49.2%

44.1%

29.9%
Target Contribution Rate 50th Percentile
21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 33/34 34/35 35/36 36/37 37/38 38/39 39/40 40/41 41/42

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%
Services and Supplies costs are anticipated to be $22 million in FY 2022-23, a increase of $1 million, or 4.7%, compared to FY 2021-22 adopted budget of $21 million. This increase is primarily in the areas of PLAN JPA premium, election cost, utility cost and proposed enhanced services. An average annual increase of 2.89% is projected for the remainder of the Forecast but consumer price index (CPI) may increase given the current inflationary economic conditions. There are also fluctuations of cost increases every other year due to election costs that are incurred by the City. The City may experience more fluctuations due to labor shortage, supply chain challenges and inflation.

Debt Service The City issued Lease Revenue Bonds in the principal amount of $18.4 million authorized by Council on October 20, 2020 to fund the Fire Station #2 Construction Project and Energy Efficiency projects with ENGIE Services. This Forecast assumes annual General Fund debt service to be $1.2 million starting in FY 2022-23 partially offset with assumed energy cost savings from the energy efficiency projects.

Capital Outlay consists of the purchase of equipment with an estimated replacement value greater than $5,000.

Annually, departmental budgets are funded and charged for ongoing equipment replacement charges. These charges are based on the anticipated replacement cost for existing equipment. However, annually the General Fund supplements these costs with an additional amount. For FY 2022-23, additional $0.4 million is requested to fund capital assets (6 Police vehicles, 2 Fire vehicles and 3 Public Works vehicles). On average, for the remainder of Forecast period, $323,000 of supplemental funding is anticipated to be budgeted annually based on historical trends.

Operating Transfers Out consists of transfers to the Information Technology Equipment Fund ($300,000) per the current Fiscal Policies. As approved as part of the FY2021-22 Adopted Budget, this budget suspends the annual transfer to the Storm Drain Fund for FY 2022-23 and the transfer will resume in FY 2023-24. Further, the City is undergoing a master plan study of its storm drain system which will assess the long-term funding need for the maintenance and repair of the system.

Ten-Year General Fund Financial Forecast
City of Milpitas 17
51 Item # 1.

Ten-Year General Fund Financial Forecast
18 City of Milpitas
52 Item # 1.

Fiscal Policies
General Financial Goals

1. To maintain a financially viable City that can maintain an adequate level of municipal services.

2. To maintain financial flexibility in order to be able to continually adapt to local, regional, and national economic change.

3. To maintain and enhance long-term the sound fiscal condition of the City.

Operating Budget Policies

4. The City will adopt a balanced budget by June 30th of each year.

5. An annual base operating budget will be developed by accurately and realistically projecting revenues and expenditures for the current and forthcoming fiscal year.

6. During the annual budget development process, the existing base budget will be thoroughly examined to assure cost effectiveness and need of the services or programs provided.

7. Once the City Council has adopted the budget, the Administration will track revenues and expenditures closely and will bring forward budget adjustment recommendations at Mid-Year, as needed.

8. Annual operating budgets will include the cost of operations of capital projects.

9. The City will avoid balancing the current budget at the expense of future budgets, unless the use of reserves is expressly authorized by the City Council.

10. The City’s operating budget will be prepared on a basis consistent with generally accepted accounting principles (GAAP) except that encumbrances are considered budgetary expenditures in the year of the commitment to purchase and capital project expenditures are budgeted on a project length basis.

Revenue Policies

11. The City will try to maintain a diversified and stable revenue system to avoid over-reliance on any one revenue source.

12. Revenue estimates are to be accurate and realistic, sensitive to local, regional, and national economic conditions.

13. The City will estimate its annual revenues by an objective, analytical process utilizing trend, judgmental, and statistical analysis, as appropriate.

14. User fees will be reviewed annually for potential adjustments to recover the full cost of services provided, except when the City Council determines that a subsidy is in the public interest. To maintain cost recovery, annually, staff shall bring forward the Master Fee Schedule as part of the budget process with an escalation to reflect increases in staff cost.

15. The City will actively pursue federal, state, and other grant opportunities when deemed appropriate. Before accepting any grant, the City will thoroughly consider the implications in terms of ongoing obligations that will be required in connection with acceptance of said grant.

16. One-time revenues will be used for one-time expenditures only including capital outlay and reserves.

Fiscal Policies and Budget Process
City of Milpitas 19
53 Item # 1.

Expenditures Policies

17. The City will maintain levels of service, as approved by the City Council, to provide for the public well-being and safety of the residents of the community.

18. Employee benefits and salaries will be maintained at competitive levels.

19. Fixed assets will be maintained and replaced as necessary, minimizing deferred maintenance.

20. The City will develop and use technology and productivity enhancements that are cost effective in reducing or avoiding increased personnel costs.

Utility Rates and Fees

21. Water and sewer utility customer rates and fees will be reviewed annually as part of the budget process and adjusted as needed to ensure full cost recovery.

22. All utility enterprise funds will be operated in a manner similar to private enterprise. As such, the City will set fees and user charges for each utility fund at a level that fully supports the total direct and indirect cost of the activity, including depreciation of assets, overhead charges, and reserves for unanticipated expenses and capital projects.

Capital Budget Policies

23. The City will develop an annual Five-Year Capital Improvement Program (CIP) with the goal to develop and maintain infrastructure in support of existing residences and businesses and future anticipated development.

24. The CIP will identify the estimated full cost of each project which includes administration, design, development and implementation, and operating costs once the projects are completed.

25. The CIP will identify potential funding sources for each proposed capital project, prior to submitting proposed projects to the City Council for approval. When appropriate, the CIP will seek other funding sources such as State and Federal funds, private funds and leverage these funding sources with public money to help meet the highest priority community needs.

26. The City Council will provide funding for the first year of the Five-Year CIP as a component of the annual operating budget and appropriate funding at the project level. Funding for future projects identified in the Five-Year CIP may not have been secured and/or legally authorized and is therefore subject to change.

27. Each CIP project will be assigned to a project manager whose responsibilities are to monitor all phases of the project to ensure timely completion of the project and compliance with the project budget and all regulations and laws.

Debt Policies

28. The City will limit long-term debt to only those capital improvements or long-term liabilities that cannot be financed from current revenue sources.

29. The City will utilize debt financing for projects which have a useful life that can reasonably be expected to exceed the period of debt service for the project.

30. The City will utilize conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs.

31. The City may utilize inter-fund loans rather than outside debt to meet short-term cash flow needs.

32. The City will not issue long-term debt to finance operating expenses and routine maintenance expenses.

Fiscal Policies and Budget Process
20 City of Milpitas
54 Item # 1.

Investment Policies

33. The Finance Director/City Treasurer will annually render an investment policy for the City’s cash pool for City Council’s review no later than the beginning of the Fiscal Year and recommend modifications as appropriate. The review will take place at a public meeting and the policy shall be adopted by resolution of the City Council.

34. City funds and investment portfolio will be managed in a prudent and diligent manner with emphasis on safety, liquidity, and yield, in that order.

35. Reports on the City’s investment portfolio and cash position shall be developed by the Finance Director/City Treasurer and reviewed by the City Council quarterly.

36. Generally Accepted Accounting Principles require that differences between the costs of the investment portfolio and the fair value of the securities be recognized as income or losses in a government’s annual financial report. These variances shall not be considered as budgetary resources or uses of resources unless the securities are sold before maturity or the values of the investments are permanently impaired.

37. The City has set up an Other Post Employment Benefits (OPEB) Trust Fund to prefund its retiree medical benefit to eligible former employees with the California Employers' Retiree Benefit Trust (CERBT). Bi- annually, the City shall engage an actuary to provide the City with an actuarial valuation. Working with the actuary, staff shall review the assumed interest earnings, investment strategy, and other factors to ensure the long-term health of the fund.

38. Per the pension valuation provided by the City’s actuary, the City’s pension costs will continue to rise during the next ten plus years. The City set aside and invested the CalPERS Rate Stabilization Reserve funds in the City of Milpitas Section 115 Pension Trust Fund in order to invest funds with moderate risk achieving a 3% to 6% investment earnings goal during the next 5 to 10 years to mitigate the rising pension costs. The City may use the trust funds to fund either the annual actuarially determined pension contribution amounts, pay down unfunded pension liabilities with CalPERS, or reduce the length of pension cost amortization schedules with CalPERS.

Reserve Policies

39. The City will fund the following reserves as follows with any General Fund audited year end operating surplus after the General Fund Contingency Reserve and General Fund Budget Stabilization Reserve requirements are met and pension budgetary surplus are allocated to the PERS Rate Stabilization Reserve. • Part I
◦ Contingency Reserve (Policy Statement #41)
◦ General Fund Budget Stabilization Reserve (Policy Statement #42) • Part II (any remaining balance)
◦ If confirmed by actuary, 20% to PERS Rate Stabilization Reserve (Policy Statement #43) ◦ If not confirmed by actuary, 0% to PERS Rate Stabilization Reserve (Policy Statement #43); • Part III (any remaining balance)
◦ Artificial Turf Replacement ($230,000) (Policy Statement #54) • Part IV (any remaining balance)
◦ 20% to the General Government Capital Improvement Fund (Policy Statement #56); ◦ 30% to Storm Drain Fund
◦ 10% to the Affordable Housing Community Benefit Fund (Fund 216); ◦ 10% to Transportation/Transit (Fund 310)
◦ 20% to Technology Replacement Fund; and
◦ 10% Unassigned
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40. The City will periodically review and update reserve guidelines, to ensure that the City has sufficient reserve balances to adequately provide for emergencies, economic uncertainties, unforeseen operating or capital needs, economic development opportunities, and cash flow requirements.

41. The City will maintain a Contingency Reserve of at least 16.67% or two months of the annual operating expenditures in the General Fund to be used only in the case of dire need as a result of physical or financial emergencies and disasters as determined by the City Council. Any use of the General Fund Contingency Reserve shall require a majority vote by the City Council through the adoption of the Operating Budget or by appropriation action during the fiscal year. The City Council will set the reserve amount annually after the results of the prior fiscal year’s Comprehensive Annual Financial Report are known. The replenishment of this reserve may also be incorporated into the annual Adopted Operating Budget if resources are available to replenish the reserve.

42. The City will maintain a General Fund Budget Stabilization Reserve with a target of 16.67%, or two months, of annual operating expenditures. The purpose of this reserve is to provide budget stability when there are fluctuations that result in lower than projected revenues and/or higher than projected expenditures that cannot be rebalanced within existing budget resources in any given fiscal year. This reserve is intended to provide a buffer, or bridge funding, to protect against reducing service levels when these fluctuations occur.

This reserve will be funded only after General Fund Contingency Reserve requirements have been met.

Any use of the General Fund Budget Stabilization Reserve shall require a majority vote by the City Council through the adoption of the Operating Budget or by appropriation action during the fiscal year. The City Council will set the reserve amount annually after the results of the prior fiscal year’s Comprehensive Annual Financial Report are known. The replenishment of this reserve may also be incorporated into the annual Adopted Operating Budget if resources are available to replenish the reserve.

43. The City will maintain in the General Fund and the Water and Sewer Utility Enterprise Funds or in a Section 115 Trust a Public Employees Retirement (PERS) Rate Stabilization Reserve. The City’s actuary has determined that the General Fund portion of the Unfunded Actuarial Liability for the Miscellaneous Retirement Plan is 84.9% and for the Water and Sewer Utility Enterprise Funds portion of the Unfunded Actuarial Liability for the Miscellaneous Retirement Plan is 8.5% and 6.6%, respectively. The contributions to the PERS Rate Stabilization Reserve from the Utility Funds shall be consistent with the General Fund contributions. If confirmed by City’s actuary that contributions are advised for that respective year, then any savings resulting from the pension budgeting methodologies shall be contributed to the PERS Rate Stabilization Reserve. However, the General Fund portion of any pension savings shall only be allocated to the PERS Rate Stabilization Reserve after the General Fund Contingency Reserve and the General Fund Budget Stabilization Reserve requirements have been met. The Utility Funds’ portion of any pension savings shall only be allocated to the PERS Rate Stabilization Reserve after the Capital Reserve and Rate Stabilization Reserve (RSR) requirements in the Water and Sewer utility funds have been met. If confirmed by City’s actuary that contributions are advised for that respective year, then additionally, 20% of any General Fund or Enterprise Funds annual operating surpluses shall be allocated to the PERS Rate Stabilization Reserve.

44. Annually, the City will endeavor to transfer $500,000 from the General Fund to the Storm Drain Fund to replace and repair storm drain infrastructure.

45. The City will maintain a retiree medical benefits account established by an irrevocable trust and fund the annual actuarially determined contribution. Any savings resulting from the budgeting methodologies shall be used to pay off the actuarial unfunded liability.

46. The City will maintain a General Liability and Workers’ Compensation Claims Reserve of at least $2 million in the General Fund, which will be reviewed for adjustments annually. As part of closing out a fiscal year, any Workers' Compensation savings in the General Fund may be allocated to this General Fund reserve and any Workers' Compensation savings in the Utility Funds may be allocated to a Workers' Compensation Claims Reserve established for each utility fund.

47. The City will maintain a Rate Stabilization Reserve (RSR) in the Water and Sewer utility enterprise funds with a goal of at least 16.67% or two months of the respective annual operating expenditures after the Fiscal Policies and Budget Process
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Capital Reserve requirements have been met. The RSR shall be used to mitigate the effects of occasional shortfalls in revenue or unanticipated expenditures that cannot be rebalanced within existing budgeted resources in any given fiscal year. Revenue shortfalls may result from a number of events such as weather factors (wet weather or drought events and natural disasters), increased water conservation, and poor regional economic conditions. The Rate Stabilization Reserves should be used to assist in smoothing out revenue variability resulting from these factors and ensure that adequate resources are available during such times that might otherwise require large rate increases to utility customers. The City Council will set the reserve amounts annually after the results of the prior fiscal year’s Comprehensive Annual Financial Report are known. The RSR funding will be phased within five years, or sooner, as part of the fiscal year- end closing process. Thereafter, the replenishment of these reserves may also be incorporated into the annual Adopted Operating Budget if resources are available to replenish the reserves.

48. The City will maintain capital reserves in the Water and Sewer utility enterprise funds to provide for future capital projects and unanticipated emergencies, such as water main break repairs, pump station repairs.

The City will attempt to maintain a capital reserve of approximately 30% of the annual operating and maintenance expenses for the Water utility fund and 25% of the annual operating and maintenance expenses for the Sewer utility fund. The City Council will set the reserve amounts annually after the results of the prior fiscal year’s Comprehensive Annual Financial Report are known.

49. In addition, the City will maintain Infrastructure Replacement Funds for both water and sewer utilities. The goal is to accumulate at least $2 million a year from each utility fund to set-aside for replacement of infrastructure as the infrastructure reaches the end of its useful life after Capital Reserve, the Rate Stabilization Reserve, and CalPERS Rate Stabilization Reserve requirements have been met.

50. Reserve levels for Debt Service Funds will be established and maintained as prescribed by the bond covenants authorized at the time of debt issuance.

51. The City will maintain a capital reserve in an Equipment Replacement Fund, set up as an internal service fund, to enable the timely replacement of vehicles and depreciable equipment as cost. The City will maintain a minimum fund balance of at least 30% of the replacement costs for equipment accounted for in this fund.

52. Annually, the City will endeavor to transfer $300,000 from the General Fund to the Technology Replacement Fund set aside in a reserve with a target of $5 million. This reserve shall be used to accrue funding for technology projects such as the major rehabilitation or replacement of the City’s technology infrastructure or new technology initiatives.

53. The City will maintain a capital reserve for Facilities Replacement with a target of $10 million. This reserve shall be used to accrue funding for major rehabilitation or replacement of City facilities (buildings/ structures). Eligible uses of this reserve may include both the direct funding of public facility improvements and the servicing of related debt. The City Council will set the reserve amount annually after the results of the prior fiscal year’s Comprehensive Annual Financial Report are known. The replenishment of this reserve may also be incorporated into the annual Adopted Operating Budget as resources are available to replenish the reserve.

54. The City will maintain a capital reserve for Artificial Turf Replacement with a target of $2 million and an annual set-aside amount of at least $230,000 until the target is reached. This reserve shall be used to accrue funding for the normal depreciation expense of the City’s artificial turf fields over their useful life.

Eligible uses of this reserve may include the replacement of the City’s artificial turf fields so as to eliminate large spikes in capital expenses and normalize annual costs. The City Council will set the reserve amount annually after the results of the prior fiscal year’s Comprehensive Annual Financial Report are known. The replenishment of this reserve may also be incorporated into the annual Adopted Operating Budget as resources are available to replenish the reserve.

55. The City may direct any loan repayments from the former Redevelopment Agency and residual property tax distributions from the Redevelopment Property Tax Trust Fund to a General Government Capital Improvement Fund to address the funding needs of capital improvement projects.

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56. The City may direct 20% of any General Fund audited year end operating surplus after General Fund Contingency and General Fund Budget Stabilization reserve requirements have been met to a General Government Capital Improvement Fund to address the funding needs of capital improvement projects.

Accounting, Auditing, and Financial Reporting Policies

57. The City’s accounting and financial reporting systems will be maintained in conformance with generally accepted accounting principles as they apply to governmental accounting.

58. An annual audit will be performed by an independent public accounting firm with the subsequent issuance of a Comprehensive Annual Financial Report, within six months of the close of the previous fiscal year.

59. Quarterly financial reports and status reports will be submitted to the City Council within six weeks after the end of each Quarter and be made available to the public. The report will provide an analysis of budgeted versus actual revenues and expenditures, on a year-to-date basis. At the minimum, the report shall include the status of the General Fund and Water and Sewer utility fund revenues and expenditures.

Budget Guidelines
Through the adoption of the annual operating budget, the City Council approves the funding of City services and estimates of resources available to fund the City’s services. Through adoption of this budget, the City Council also approves these budget guidelines providing certain responsibilities and authority to the City Manager to adjust the budget given fluctuations in revenues. These budget guidelines provide sufficient flexibility to make budget adjustments during the year, provided these adjustments do not materially alter the general intent of the City Council approved budget, and establish adequate controls through budget monitoring and periodic reporting.

Annually, the City Council establishes Council Priority Areas regarding service levels to provide guidance to management in preparing the adopted budget. This budget reflects the City Council Priority Areas. Through its legislative authority, the Council approves and adopts the budget by resolution.

The City Manager is responsible for proposing to the City Council a balanced budget which is consistent with the Council’s service level priorities and sound business practices. A Balanced Budget is defined as a budget where the anticipated operating revenues and other financing resources including carryover of outstanding encumbrances from prior year are equal to or exceed operating expenditures. The City Manager is also responsible for establishing a system for the preparation, execution, and control of the budget which provides reasonable assurances that the intent of Council priorities is met.

The Finance Director is responsible for developing the operating budget on behalf of the City Manager, synchronizing the operating budget with the annual capital plan, developing a ten-year General Fund Financial Forecast, establishing budget and fiscal policy, providing periodic budget status reports to the City Manager and the City Council, and developing internal monthly budget management reports for the Department Heads to facilitate control and compliance with the budget.

The Department Heads are responsible for assisting in the development of annual budgets and monitoring their respective budgets for compliance with the intent of Council priorities to ensure that appropriations of the aggregate total of the department are not exceeded.

Summary of Budget Guidelines

1. Basis of Budgeting
City budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except that encumbrances are considered budgetary expenditures in the year of the commitment to purchase, and capital Fiscal Policies and Budget Process
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project expenditures are budgeted on a project length basis rather than a fiscal year. For all governmental funds, revenues and expenditures are budgeted on a modified accrual basis. For all proprietary funds, revenues and expenditures are budgeted on an accrual basis.

2. Budget Calendar
The Finance Director publishes a budget preparation calendar to the Department Heads and to the City Council at the beginning of the budget process each year. The calendar sets forth, at a minimum, dates for the following:
• Review of service level priorities by the City Council at an annual Planning Session. • Review and update of the Master Fee Schedule.
• Community Engagement and Outreach.
• Engagement and Outreach for City employees.
• Capital Improvement Projects Budget.
• Presentation of the City Manager's Proposed Budget to the City Council, which shall be no later than the second week in May.

3. Form and Content of the City Manager's Proposed Budget The Ten-Year General Fund Financial Forecast and the City Manager's Proposed Budget shall be presented in a form which facilitates the City Council to determine and review, as applicable:
• Alignment of the proposed service level changes to City Council priorities as established at the annual Planning Session.
• Projected revenues by major category; based on an updated Master Fee Schedule. • Operating expenditures by major category.
• Historical and proposed authorized staffing levels.
• Department and Office Proposed budgets as follows:
◦ Service level descriptions.
◦ Summary of accomplishments and initiatives.
◦ Performance and workload measures.
◦ Expenditure comparison with the preceding year's budget and two years of actual results. ◦ Authorized staffing comparison with the preceding three years. ◦ Budget reconciliation from the prior fiscal year to the Proposed Budget. ◦ Recommendations for service level changes with a detailed description, performance outcome, and impact statement if the recommendation is not funded.
• Capital improvement appropriations by project.
• A schedule showing General Fund Revenue and Expenditure projection for the next nine years.

4. Adoption of the Budget
The City Council will adopt the budget by resolution no later than June 30th of the previous fiscal year, setting forth the amount of appropriations and authority of the City Manager to administer the adopted budget. Unless otherwise directed, all funds that are presented in the operating budget document are subject to Council approval of appropriations.

5. Budget Authority of the City Manager
The City Manager shall have the authority to make revisions involving transfers from the appropriated Unanticipated Expenditure Reserve account less than or equal to the aggregate amount of amount adopted within the budget in any one fiscal year ($1,140,000 in FY 2022-23, or 1% of total General Fund appropriations), Fiscal Policies and Budget Process
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provided that the Council is notified in writing of the revision, giving the reason, the amount of the revision and the year-to-date total amount of revisions as part of the quarterly financial reports.

Additionally, the City Manager shall have the authority to:
• Amend and/or transfer appropriations among departments and projects within any one fund, provided that the amount of the amended appropriation is $100,000 or less; • Accept grants or donations up to $100,000 or less, increase department revenues and appropriations accordingly and execute related agreements as long as no matching funds are required, and/or departments do not require additional funding for ongoing maintenance costs or future replacement costs. • Reasonably deviate from the budgeted personnel allocation schedule provided that at no time the number of permanent funded positions or personnel cost appropriations authorized by the City Council is exceeded; • Hire full-time employees in overstrength positions for no more than one year as long as appropriations are not exceeded to ensure adequate staffing levels for sworn positions, to facilitate training of new employees in critical positions by the outgoing incumbents, or to respond to urgent staffing needs; and • Add/delete positions or to move positions between departments to respond to organizational needs, as long as the number of permanent funded positions and the approved personnel cost appropriations remain the same.

Prior approval of the City Council is required for changes that:
• Increase the overall appropriation level within any one Fund. • Transfer or reallocate appropriations between different Funds. • Cause an increase or decrease in funded authorized position counts in the Adopted Budget. • Cause the aggregate amount of contract change orders to exceed 15 percent of the contract amount and/or exceed prior approved appropriation levels for the subject contract. • Cause transfers from unanticipated expenditure reserve to exceed the aggregate amount of $1,140,000 during the fiscal year.
• Result in changes not consistent with the purpose and intent of the Budget as adopted. • Require an appropriation action from any unassigned fund balances or reserves.

Pertaining to ARPA:
• On August 9, 2021 wherein for ARPA funding, the City Council delegated authority to the City Manager including appropriation and contract approval authority up to the approved amount for each program approved by Council, once compliance with ARPA procurement, contracting and reporting requirements. For budget monitoring and reporting, it includes a quarterly ARPA report for program updates to the City Council.

6. Budget Amendments by the City Council
At City Council meetings, the City Council may from time to time approve expenditures and identify funding sources not provided for in the adopted budget including those expenditures funded through unassigned fund balances or reserves.

7. Budget Transfers and Modification Procedures
Procedures to implement budget transfers or budget modifications are detailed in Standard Operating Procedure No. 21-1, subject to any changes by the Budget Resolution.

8. Automatic Adjustments and Reappropriations
Outstanding encumbrances at prior fiscal year-end will automatically be carried over to current year’s budgets.

Unspent appropriations that are authorized and funded by grant revenues or donations from prior fiscal year will automatically be carried over to current year’s budgets. Unspent City funded grant appropriations from prior fiscal year will automatically be carried over to the current year’s budgets.

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Incomplete multiple year project (capital improvement project) balances will automatically be appropriated.

Any unused non-salary and benefits-related appropriations, subject to the approval of the City Manager, at the end of the fiscal year may be re-appropriated for continued use in the subsequent fiscal year. Furthermore, any outstanding contract and/or purchase order obligations (or encumbrances) remaining at the end of FY 2021-22 are subject to carry over into FY 2022-23.

9. Budget Monitoring and Reporting
Monthly Financial Reports - The Director of Finance will prepare and make available a monthly budget report including actual expenditures and encumbrances for distribution to the City Manager and Department Heads, to facilitate monitoring of the budget.

Quarterly Financial Status Reports - The Director of Finance will periodically prepare financial status reports for presentation to the City Council. At the minimum, the report shall include the status of the General Fund revenues and expenditures; Water and Sewer utility fund revenues and expenditures; and document any use of the appropriated Unanticipated Expenditure Reserve; and report the acceptance of any grants and donations as authorized in these budget guidelines.

Annually, as part of the 4th Quarter Financial Status Report, the Director of Finance shall report on all active grants and grants closed out during the fiscal year including the purpose of the grant, the granting agency, the grant amount awarded, remaining grant funds, and grant activities completed or underway.

10. Reserves
Various unallocated reserves are desired in each of the City's funds to protect the City in emergencies, economic uncertainties, and to finance unforeseen opportunities and/or requirements. Key reserve policies for various funds are described in detail in the document entitled "City of Milpitas Fiscal Policies".

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City of Milpitas FY 2022-2023 Budget Process
Fiscal Policies and Budget Process
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Budget Development and Document
Annual Budget Development
Every year the City Council adopts a Budget and Financial Plan for the next fiscal year, (the City's fiscal year runs from July 1 of one year through June 30 of the next year). Through the adoption of the annual budget, the City Council approves the funding of City services and estimates of resources available to fund the City’s services. The budget is also developed based on the following:
• The City Council’s Priority Area and other City Council directives. • The City's ten-year General Fund Financial Forecast, which is updated annually and presented to the City Council prior to the release of the proposed budget.
• Input from the Community through surveys and community meetings. • Service level prioritization as identified by the City Manager. • Availability and sustainability of revenues.
• Legal mandates.
• Prioritization criteria outlined in the capital budget.

In the fall of each year, staff develops the base budget for the upcoming fiscal year and the ten-year General Fund Financial Forecast based on available information. The base budget reflects the Council approved service level with updated costs. As part of developing the base budget for the upcoming fiscal year, staff projects the revenues and expenditures for the next 10 fiscal years to develop the Forecast. The ten-year General Fund Financial Forecast projects whether the City will experience budget shortfalls or surpluses in the next fiscal year and thereafter.

The annual public budget development process begins in January with a review of City Council Priority Areas and the presentation of the ten-year General Fund Financial Forecast. Through surveys and community meetings, staff engages the community for input into budget priorities. In May, based on the input from City Council and the community, the City Manager publishes the proposed budget for the upcoming year. During May and June, the City Council holds study sessions and public hearings prior to adopting the annual budget. The City Council adopts the Proposed Budget as it may be amended based on discussion or direction during the budget hearings.

In summer, the City publishes its Adopted Budget. For the Fiscal Year 2022-23 budget development process, please review the timeline and steps shown on the previous page.

Understanding the Budget Document
The operating budget document includes city-wide information as well as information specific to each fund and each department. The City receives revenue from numerous different sources, many of which have restrictions on how they can be used. Separate funds are established to account for the different types of revenues and allowable uses of those revenues. The annual budget information is available after the publication of the annual Adopted Budget, which occurs in July or August. At this time, staff also publishes a Budget-in-Brief document and the annual budget will also be available on Open Budget, which is described below. In the Appendix, the City lists all fund names by fund type.

General Fund: This is the primary fund used to account for all general revenues of the City (e.g. property, sales, transient occupancy and utility user taxes). In general, these funds are allocated at the discretion of the City Council. This revenue is used to support citywide services such as public safety, community services, planning and community environment, and administrative support services. Some activities in the General Fund, such as building inspection and recreation functions, are also intended to be substantially self-supporting through fees for services charged to individuals. In areas where specific benefit for a service can be identified to specific individuals, the City has a policy of charging a fee to offset the cost of providing the service.

Enterprise Funds: These funds are established to function as self-supporting operations wherein expenditures are entirely offset by fees or charges for services. These funds are used to account for specific services which are funded directly by fees and charges to users. In Milpitas, Enterprise Funds include the Water Fund and the Sewer Fiscal Policies and Budget Process
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Fund. The intent is that these two funds be completely self-supporting and not be subsidized by any general revenue or taxes. The utility bills sent to each household and business in the community charge for the cost of providing water and sewer customer services.

Internal Service Fund: This type of fund is established to account for a variety of business services provided by one City department (or division) to other City departments. The City's main internal service fund, the Equipment Management Fund, provides vehicle and fleet maintenance services that are provided to all City departments through an internal service fund. Departments are charged for these services based on their respective utilization.

Capital Projects Funds: Revenues and expenses for capital projects are accounted for in separate funds. A capital improvement is usually a large construction project such as the resurfacing of City streets, the development of park land, the construction of an overpass, the installation of a traffic signal, or the acquisition of land and construction or remodeling of a public building. The City's Capital Improvement Funds include Street Improvement Fund, the Park Fund, General Government Fund, and Storm Drain Fund Construction Fund.

Special Revenue Funds: These funds are used to account for the proceeds of revenues that are designated for specific or restricted uses. These funds include gas tax funds from the State, federal revenue for Justice Assistance Grants, and Lightning and Maintenance District funds.

Budgets and Budgetary Accounting
The City’s budget is adopted on a basis consistent with generally accepted accounting principles (GAAP) except that encumbrances are considered budgetary expenditures in the year of the commitment to purchase, and capital project expenditures are budgeted on a project length basis.

The legal level of budgetary control or authorized appropriations is exercised at the departmental level for those funds which have annually adopted budgets such as the General Fund, Enterprise Funds, Special Revenue Funds and Capital Improvement Funds. Finance is responsible that appropriations are not exceeded during the fiscal year.

Appropriations automatically lapse at the end of the fiscal year unless an encumbrance exists, with the exception of balances remaining in the capital project accounts and grant accounts at the end of the fiscal year. These balances are carried forward to the following fiscal year until the project is completed.

Prop 4 - Appropriations Limit
The City establishes an appropriations limit by resolution consistent with the State Constitution, each year during the budget process, which commences after the beginning of each fiscal year. The appropriation base is adjusted each year by changes in population, cost of living and transfers of financial responsibility. As shown in the Financial Information section of the Adopted Budget document, the City has not exceeded its annual Appropriations Limit for the last ten years and in any single fiscal year since this requirement was approved by the voters in 1979.

Budget Amendments
The operating budget is subject to supplemental appropriations throughout its term in order to provide flexibility to meet changing needs and conditions consistent with the Council approved Budget Guidelines. Per the Guidelines, the City Manager is authorized to amend and/or transfer appropriations among departments and projects within any one fund, provided that the amount of the amended appropriation is $100,000 or less as well as other authorizations related to positions. Otherwise, any other budget amendment which changes the total appropriation for a department or fund requires Council approval.

Examples of these amendments include but are not limited to:
• The acceptance of additional grant money which might become available; • The number of positions approved in the Budget;
• The appropriation of additional funding if expenditures are projected to exceed budgeted amounts; or • The re-appropriation of monies from one fund to another.

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Basis of Accounting
Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements, regardless of the measurement that is applied. All governmental funds and agency funds are accounted for using the modified accrual basis of accounting. Fund revenues are recognized when they become measurable and available as net current assets. Measurable means the amount of the transaction can be determined and available means the amount is collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period.

Those revenues susceptible to accrual are property and sales taxes and interest revenue. Transient Occupancy Tax, forfeitures, licenses, permits, and miscellaneous revenue are not susceptible to accrual because they are not measurable until received in cash. Revenues not considered earned but received are accounted for as revenue collected in advance.

Expenditures are also generally recognized under the modified accrual basis of accounting. An exception to this rule is principal and interest on general long-term debt, which is not recognized until it is due. Financial resources usually are appropriated in funds responsible for repaying debt in the period in which maturing debt principal and interest must be paid.

All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. Revenues for services provided but not billed at the end of the fiscal year are not material and are not accrued.

Cost Accounting
The City uses cost accounting to determine the proper allocation to recover costs for services provided. For each City service or program, in addition to direct staff support and appropriations for supplies and services, it also receives support from the administrative staff and benefits from centralized services such as equipment maintenance. These indirect costs (also known as administrative and overhead costs) need to be allocated to each major service or program in order to determine the full cost of providing City services. Similarly, the centralized service costs also need to be allocated to various operating funds. Centralized service costs are typically budgeted and advanced by the General Fund. Cost allocation is necessary to ensure that each of these operating funds share the administrative and overhead costs equitably.

Department Information
The Budget Narrative and Summary section of the budget document summarizes the service delivery and budgetary information for each department as follows: Mission Statement, Description, and Services highlight the purpose and functions for each department.

Organizational Chart: this functional organizational chart depicts full-time equivalent (FTE) positions, which report to a department director and identifies any position changes such as additions, deletions, or reclassifications; position moves from one department to another; and temporary positions.

Accomplishments: identifies the department’s noteworthy accomplishments over the past 12 to 18 months and their alignment to Council Priority Areas.

Initiatives: highlights the major work plan items for the department for the upcoming Fiscal Year and their alignment to Council Priority Areas.

Performance and Workload Measures: lists key department performance measures and identifies key quantifiable department outputs.

Budget Summary: summarizes key expenditure data for the department for several fiscal years (FY 2020 Actuals, FY 2021 Actuals, FY 2022 Adopted, and FY 2023 Proposed) by function, if applicable, and expenditure categories.

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Staffing: lists all full-time equivalent (FTE) positions for the department for several fiscal years (FY 2020 Actuals, FY 2021 Actuals, FY 2022 Adopted, and FY 2023 Proposed) by function, if applicable, and by classifications.

Positions were defunded as part of the FY 2020-21 Mid-Year and FY 2021-22 Proposed Budget process and they are noted in the staffing tables and footnotes.

Budget Reconciliation: outlines the major base budget and service level changes from the previously adopted budget to the newly presented proposed or adopted budget. Base budget reconciliation changes include deletion of one-time expenditures, updated salary and benefits cost in accordance with the salary and benefits structure approved the City Council, or addition of ongoing expenditures as approved by the City Council. The service level change table itemizes service level changes and related expenditures.

Service Level Changes: describes service level changes compared to the prior fiscal year in alignment with the dominant Council Priority Area identified with one of the icons below; the anticipated performance impact as it relates to Quality, Cost, Cycle Time, Customer Satisfaction, and Sustainability with the icons identified below; and the impact, if the service level change is not funded.

Council Priority Areas Icons:

Community Wellness
and Open Space
Continue to provide parks and amenities for people of all ages and abilities to enjoy higher levels of physical and mental health.

Economic Development
and Job Growth
Continue to strengthen our economic foundations that support community prosperity and opportunity while ensuring a sustainable and livable city.

Environment Promote a sustainable community and protect the natural environment.

Governance and
Administration
Continue to streamline processes for enhanced service and remain committed to long-term fiscal discipline and financial stewardship.

Neighborhoods
and Housing
Continue to explore innovative approaches to incentivize affordable housing projects, collaborate with key stakeholders to care for our most vulnerable populations, and support and engage
neighborhoods through dedicated programs and services.

Public Safety Continue to invest in police and fire protection, in partnership with our community.

Transportation
and Transit
Continue to seek and develop collaborative solutions to meet the transportation challenges facing our community and our region.

Performance Impact Icons:

Cost
Cycle Time
Customer Satisfaction
Quality
Sustainability
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Open Budget
In order to facilitate understanding and transparency of the budget document, the City presents budget information through OpenGov, an online tool that provides users with different views of the City’s budget data by fund, department, revenues, and expenditures. The tool can be accessed by visiting www.milpitasca.opengov.com. The City invites you to use the online tool to:
• Search the current year’s budget and financial data.
• View trends in revenues and expenditures over time.
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Fiscal Policies and Budget Process
City of Milpitas 33
67 Item # 1.

Fiscal Policies and Budget Process
34 City of Milpitas
68 Item # 1.

Fiscal Policies and Budget Process
City of Milpitas 35
69 Item # 1.

Fiscal Policies and Budget Process
36 City of Milpitas
70 Item # 1.

Fund Structure
Accrual Basis of Budgeting

Basis of Budgeting
City budgets are adopted on a basis
consistent with generally accepted
accounting principles ( GAAP) except
that encumbrances are considered
budgetary expenditures in the year of
the commitment to purchase, and
capital project expenditures are
budgeted on a project length basis
rather than a fiscal year. For all
governmental funds, revenues and
expenditures are budgeted on a
modified accrual basis for all proprietary
funds, revenues and expenditures are
budgeted on an accrual basis.

Accrual Basis is a basis of accounting
in which transactions are recognized at
the time they are incurred, as opposed
to when cash is received and spent.

Modified Accrual Basis is a basis of
accounting in which revenues are
recognized when measurable and
available and expenditures are recorded
when the related fund liability is
incurred.

Financial Information
City of Milpitas 37
71 Item # 1.

Budget Summary Grand Total General Fund(1)
Estimated Revenues
Property Taxes .......................................................................................................... $42,636,192 $42,636,192 Sales Taxes ............................................................................................................... 33,927,435 33,927,435 Transient Occupancy Tax ........................................................................................ 8,329,238 8,329,238 Licenses, Permits & Fines ....................................................................................... 11,484,759 11,484,759 Charges For Services .............................................................................................. 72,076,668 5,969,453 Franchise Fees ......................................................................................................... 6,058,428 5,448,428 Use of Money & Property ........................................................................................ 3,031,210 264,000 Other Taxes ............................................................................................................... 4,984,984 1,067,452 Intergovernmental Revenue .................................................................................... 3,629,128 1,081,728 Other Revenue .......................................................................................................... 32,030,807 349,657 Operating Transfers In ............................................................................................. 10,942,934 7,168,628 sub-total 229,131,783 117,726,970
Other Financing Sources
(Increase) Decrease in Fund Balance ................................................................... (10,039,020) 0 (Increase) Decrease in CIP Reserve ..................................................................... (11,417,591) 0 Other Financing Sources ......................................................................................... 0 0 sub-total (21,456,611) 0
TOTAL $207,675,172 $117,726,970
Budgeted Appropriations
Personnel Services .................................................................................................. $105,885,225 $93,532,069 Non-Personnel Expenditures .................................................................................. 60,171,857 22,284,917 Capital Outlay ............................................................................................................ 2,074,032 371,318 Operating Transfers Out .......................................................................................... 10,942,934 341,866 sub-total 179,074,048 116,530,170
Capital Improvements .............................................................................................. 23,926,000 0 Debt Service .............................................................................................................. 4,675,125 1,196,800 sub-total 28,601,125 1,196,800
TOTAL $207,675,172 $117,726,970
Fund Balance
Fund Balance 7/01/2022 ......................................................................................... 324,387,606 53,739,788 Net Changes in Fund Balance ................................................................................ 21,456,612 0 TOTAL $345,844,218 $53,739,788
Restricted ................................................................................................................... $28,567,987 $0 Restricted for CIP ..................................................................................................... 158,300,137 0 Committed for CIP .................................................................................................... 80,515,966 0 Committed, Artificial Turf .......................................................................................... 1,440,000 1,440,000 Committed, Technology ........................................................................................... 7,000,000 7,000,000 Committed, Facilities ................................................................................................ 2,000,000 2,000,000 Committed for PERS ................................................................................................ 7,958,147 2,826,484 Committed, Workers' Compensation ..................................................................... 2,344,962 2,344,962 Future Deficit Reserve ............................................................................................. 1,452,576 1,452,576 Capital Reserve, Unassigned ................................................................................. 12,178,036 Contingency Reserve, Unassigned ....................................................................... 18,253,286 18,253,286 Budget (Rate) Stabilization, Unassigned .............................................................. 26,209,542 18,253,286 TOTAL $345,844,218 $53,739,788
(1) General Fund Fund, Abandon Vehicle Abatement Fund, 1452 S. Main St Fund and administration funds of the former Redevelopment Agency.
(2) Other Funds include Community Benefit Fund, Community Facility District Funds, Community Planning Fee Fund, Gas Tax Fund, Equipment Replacement Fund, Housing and Community Development Fund, Information Technology Replacement Fund, Law Enforcement Grant Funds, Light & Landscape Maintenance District Funds, Measure B Fund, Permit Automation Fund, Public Art Fund, and Solid Waste Services Fund. The decrease in Fund Balance is mostly attributed to changes in Solid Waste Services and Housing Authority Fund.

Financial Information
38 City of Milpitas
72 Item # 1.

Housing Authority Other Funds (2) Capital Projects(3) Water Fund(4) Sewer Fund(5) $0 $0 $0 $0 $0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
100,000 4,453,999 0 37,070,999 24,482,217
0 610,000 0 0 0
214,605 768,591 0 724,561 1,059,453
0 3,917,532 0 0 0
0 785,840 1,761,560 0 0
0 5,116,044 24,138,599 1,009,370 1,417,137
0 341,866 3,432,440 0 0
314,605 15,993,872 29,332,599 38,804,930 26,958,807 230,007 205,003 0 (2,260,480) (8,213,550)
0 (65,988) (13,822,940) (2,466,936) 4,938,273
0 0 0 0 0
230,007 139,015 (13,822,940) (4,727,416) (3,275,277) $544,612 $16,132,887 $15,509,659 $34,077,514 $23,683,530 $0 $5,356,519 $25,659 $4,154,186 $2,816,792
544,612 3,205,530 20,000 24,371,884 9,744,914
0 1,625,358 0 40,000 37,356
0 5,945,479 0 2,949,393 1,706,196
544,612 16,132,886 45,659 31,515,463 14,305,258
0 0 15,464,000 1,515,000 6,947,000
0 0 0 1,047,050 2,431,275
0 0 15,464,000 2,562,050 9,378,275
$544,612 $16,132,886 $15,509,659 $34,077,513 $23,683,533 883,094 27,508,299 125,451,151 63,530,143 53,275,131 (230,007) (139,015) 13,822,940 4,727,416 3,275,277
$653,087 $27,369,284 $139,274,091 $68,257,559 $56,550,408 $653,087 $27,914,900 $0 $0 $0
0 0 85,964,710 34,334,531 38,000,896
0 0 53,309,381 18,928,362 8,278,223
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 1,097,481 4,034,182
0 0 0 0 0
0 0 0 0 0
0 0 0 8,687,233 3,490,803
0 0 0 5,209,952 2,746,304
$653,087 $27,369,284 $139,274,091 $68,257,559 $56,550,408 (3) Capital Projects include Street Improvement Fund, Park Improvement Funds, General Government Capital Improvement Fund, Storm Drain Capital Improvement Fund and Transit Area Impact Fee Fund. (4) Water Fund includes Water Maintenance & Operations Fund, 2019 Water Bonds Fund, Water CIP Fund, Water Line Extension Fund, and Water Infrastructure Replacement Fund.
(5) Sewer Fund includes Sewer Maintenance & Operations Fund, 2019 Wastewater Bonds Fund, Sewer Fund CIP, Treatment Plant Construction Fund and Sewer Infrastructure replacement Fund.

Financial Information
City of Milpitas 39
73 Item # 1.

FY 2022-23 Revenues
(All Funds)
$207.7 Million
Property Taxes
$42,636,192
Intergovernmental
Revenue
$3,629,128
Sales Taxes
$33,927,435
Transient
Occupancy
Tax
$8,329,238
Licenses, Permits & Fines
$11,484,759
Use of Money & Property
$3,031,210 Other Taxes
$4,984,984
Charges For Services
$72,076,668
Franchise Fees
$6,058,428
Other Revenue
$32,030,807
Operating Transfers In
$10,942,934
*$207.7 Million revenue excludes changes in fund balance and/or CIP reserve of $21.5 million and interfund transfers of $18.7 million.

Financial Information
40 City of Milpitas
74 Item # 1.

FY 2022-23 Expenditures
(All Funds)
$207.7 Million
City Manager
$2,184,530
Building
Safety and
Housing
$8,766,068
Fire
$28,361,746 Recreation
$5,865,448
City Attorney
$1,256,946
Finance
$6,341,376
Information
Technology
$4,677,956
Police
$38,228,207
Planning
$2,351,488
Economic
Development
$965,847
Public Works
$23,244,704
City Clerk
$567,660
Non-Departmental
$43,427,292
Engineering
$4,071,662
City Council
$557,723
Capital
Improvement
Projects
$23,926,000
Human Resources
$1,937,584
Transfers Out
$10,942,934
Financial Information
City of Milpitas 41
75 Item # 1.

Funded Permanent Positions by Department
Adopted
Budget
19-20
Change
from the
prior FY
Adopted
Budget
20-21
Change
from the
prior FY
Adopted
Budget
21-22
Change
from the
prior FY
Proposed
Budget
22-23
Change
from the
prior FY
City Council 5.00 0.00 5.00 0.00 5.00 0.00 5.00 0.00 City Manager 6.00 0.00 6.00 0.00 5.50 (0.50) 5.50 0.00 City Clerk 3.00 0.00 3.00 0.00 2.50 (0.50) 2.50 0.00 Economic Development 3.00 0.00 3.00 0.00 3.00 0.00 3.00 0.00 City Attorney 1.00 0.00 1.00 0.00 0.00 (1.00) 3.00 3.00 Building Safety and
Housing 33.00 9.00 33.00 0.00 31.00 (2.00) 31.00 0.00 Engineering 25.00 2.00 24.00 (1.00) 23.00 (1.00) 25.00 2.00 Finance 29.50 2.00 29.50 0.00 28.50 (1.00) 29.50 1.00 Fire 77.00 8.00 83.00 6.00 77.00 (6.00) 82.00 5.00 Human Resources 7.00 2.00 7.00 0.00 6.00 (1.00) 7.00 1.00 Information Technology 12.00 1.00 13.00 1.00 12.00 (1.00) 13.00 1.00 Planning 10.00 1.00 10.00 0.00 9.00 (1.00) 9.00 0.00 Police 126.00 9.00 126.00 0.00 124.00 (2.00) 127.00 3.00 Public Works 73.00 5.00 75.00 2.00 74.00 (1.00) 81.00 7.00 Recreation and
Community Services 20.75 2.75 20.75 0.00 15.00 (5.75) 17.00 2.00 TOTAL 431.25 41.75 439.25 8.00 415.50 (23.75) 440.50 25.00 *In FY 2021-22, 9 positions were amended and added. The Proposed FY22-23 Budget adds 16 positions.

Funded Permanent Positions
440.50 FTEs - All Funds
Fiscal Years Adopted Budget
FTEs
FTEs Population
08-
09 09-
10 10-
11 11-
12 12-
13 13-
14 14-
15 15-
16 16-
17 17-
18 18-
19 19-
20 20-
21 21-
22 22-
23 100
150
200
250
300
350
400
450
500
550
50,000
55,000
60,000
65,000
70,000
75,000
80,000
85,000
90,000
*FY 2019 population data is used as placeholder due to absent population data for FY 2021 and FY 2022 **Great Recession occurred in FY 2009-10 and Redevelopment Agency Dissolution (RDA) occurred in FY 2012-13.

Financial Information
42 City of Milpitas
76 Item # 1.

All Permanent Positions by Department*
Adopted
Budget
19-20
Change
from the
prior FY
Adopted
Budget
20-21
Change
from the
prior FY
Adopted
Budget
21-22
Change
from the
prior FY
Proposed
Budget
22-23
Change
from the
prior FY
City Council 5.00 0.00 5.00 0.00 5.00 0.00 5.00 0.00 City Manager 6.00 0.00 6.00 0.00 6.00 0.00 6.00 0.00 City Clerk 3.00 0.00 3.00 0.00 3.00 0.00 3.00 0.00 Economic Development 3.00 0.00 3.00 0.00 3.00 0.00 3.00 0.00 City Attorney 1.00 0.00 1.00 0.00 0.00 (1.00) 3.00 3.00 Building Safety and
Housing 33.00 9.00 33.00 0.00 33.00 0.00 33.00 0.00 Engineering 25.00 2.00 24.00 (1.00) 24.00 0.00 26.00 2.00 Finance 29.50 2.00 29.50 0.00 29.50 0.00 29.50 0.00 Fire 77.00 8.00 83.00 6.00 82.00 (1.00) 83.00 1.00 Human Resources 7.00 2.00 7.00 0.00 7.00 0.00 7.00 0.00 Information Technology 12.00 1.00 13.00 1.00 13.00 0.00 13.00 0.00 Planning 10.00 1.00 10.00 0.00 9.00 (1.00) 9.00 0.00 Police 126.00 9.00 126.00 0.00 126.00 0.00 127.00 1.00 Public Works 73.00 5.00 75.00 2.00 76.00 1.00 82.00 6.00 Recreation and
Community Services 20.75 2.75 20.75 0.00 20.75 0.00 20.75 0.00 TOTAL 431.25 41.75 439.25 8.00 437.25 (2.00) 450.25 13.00 *This table includes 9.75 defunded positions for FY 2022-23.

All Permanent Positions
450.25 FTEs - All Funds
Fiscal Years Adopted Budget
FTEs
FTEs Population
08-
09 09-
10 10-
11 11-
12 12-
13 13-
14 14-
15 15-
16 16-
17 17-
18 18-
19 19-
20 20-
21 21-
22 22-
23 100
150
200
250
300
350
400
450
500
550
50,000
55,000
60,000
65,000
70,000
75,000
80,000
85,000
90,000
*FY 2019 population data is used as placeholder due to absent population data for FY 2021 and FY 2022 **Great Recession occurred in FY 2009-10 and Redevelopment Agency Dissolution (RDA) occurred in FY 2012-13.

Financial Information
City of Milpitas 43
77 Item # 1.

Revenues by Fund
100 General Fund ..................................................... $105,057,100 $109,208,085 $110,639,648 $117,576,970 103 1452-1474 S. Main ........................................... 155,536 88,867 70,000 70,000 105 Abandon Veh Abatement ................................. 79,152 91,290 70,000 80,000 106 Short Term Disability ........................................ 45 52,617 0 0 109 Utility Rate Assistance ..................................... 266,930 9,485 0 0 150 Redevelopment Administration ....................... 29,037 14,252 0 0 211 Hetch Hetchy Ground Lease ........................... 32,063 7,294 24,000 39,539 213 Public Art Fund-Nonrestricted ......................... 507,423 104,848 18,500 30,944 214 Community Planning Fee Fund ...................... 353,211 998,949 389,500 270,846 215 Community Benefit Fund ................................. 5,209 103,239 4,000 9,414 216 Affordable Housing Fund ................................. 1,865,619 2,088,278 850,500 629,124 217 Affordable Housing Unrestricted .................... 2,165,406 64,067 32,500 56,574 221 Gas Tax Fund .................................................... 3,620,270 1,717,117 1,970,804 2,235,494 225 SB1 Road Maintenance & Rehab .................. 0 1,454,502 1,489,911 1,724,712 235 95-1 Lighting/Lscape Dist ................................ 357,727 368,936 412,677 433,600 236 98-1 Lighting/Lscape Dist ................................ 43,802 45,624 69,210 69,617 237 05 Community Fclty Dist .................................. 1,232,078 1,291,849 1,253,200 1,272,958 238 08 Community Fclty Dist .................................. 1,918,900 2,169,104 2,463,179 2,935,942 250 HCD Fund .......................................................... 397,259 1,473,732 1,265,213 685,840 251 HCD Loan .......................................................... 89,915 182,134 4,400 10,952 261 Supplemental Law Enforcement .................... 210,896 162,391 3,000 106,078 262 State Asset Seizure .......................................... 5,991 2,582 1,000 1,237 263 Federal Asset Seizure ...................................... 1,241 667 1,000 1,128 267 Federal Grants Police Department ................ 34,082 141,293 0 0 268 State Grants Police Department ..................... 40,246 107,520 12,200 13,972 269 Grants Fire Department ................................... (42) 17,799 200 0 280 Solid Waste Services ....................................... 242,768 313,484 237,000 646,650 295 Housing Authority .............................................. 737,206 516,359 271,000 314,605 310 Street Fund ........................................................ 215,305 22,214 70,100 0 311 Street CIP ........................................................... 10,267,043 3,979,044 4,450,000 4,384,000 312 Traffic Impact Fee ............................................. 7,831 0 0 0 314 Vehicle Registration Fee .................................. 515,617 271,759 271,132 0 315 Calaveras Widening Impact Fee .................... 294,255 (105,688) 238,500 0 316 Montague Widening Impact Fee .................... 0 0 0 0 Description 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
Financial Information
44 City of Milpitas
78 Item # 1.
317 Milpitas Business Park Impact Fee ................ 373,460 0 0 0 320 Park Improvement Fund .................................. 1,549,758 547,517 167,500 5,124,443 321 Park Improvement CIP ..................................... 2,950,000 0 135,000 580,000 322 Midtown Park Fund ........................................... 627,033 46,049 272,500 0 330 General Government ........................................ 11,240,289 8,265,133 396,000 0 331 General Government CIP ................................ 13,090,296 12,273,421 5,991,932 6,801,000 334 2020 Fire Station Bonds .................................. 0 21,230,021 0 0 340 Storm Drain Development ............................... 821,221 708,400 390,900 306,332 341 Storm Drain CIP ................................................ 1,755,000 3,386,590 0 200,000 350 Transit Area Impact Fee Fund ........................ 27,318,903 14,062,032 14,000,000 18,707,824 351 Transit Area Impact Fee CIP Fund ................. 11,619,251 3,401,250 3,400,000 3,499,000 400 Water M & O Fund ............................................ 29,683,288 30,803,073 31,533,170 33,513,944 401 Water CIP ........................................................... 5,126,172 10,293,306 2,090,000 1,515,000 402 Water Line Extension Fund ............................. 339,255 365,621 346,216 1,088,049 403 2019 Water Bonds ............................................ 372,984 20,177,078 0 0 405 Water Infrastructure Replacement ................. 7,888,030 6,971,884 4,134,653 4,202,937 450 Sewer M & O Fund ........................................... 20,173,838 20,254,874 20,908,555 24,688,080 451 Sewer CIP .......................................................... 22,682,019 10,474,415 6,480,000 6,947,000 452 Treatment Plant Construction ......................... 443,970 480,024 536,400 1,573,859 453 2017 Sewer Refunding Bonds ........................ 58 0 0 0 454 2019 Sewer Bonds ........................................... 202,844 35,478,145 0 0 455 Sewer Infrastructure Replacement ................ 6,363,877 9,490,960 310,500 696,868 500 Equipment Replacement Fund ....................... 3,718,482 3,550,101 3,555,000 3,680,052 505 Information Technology Replacement ........... 0 306,847 310,500 319,197 506 Permit Automation Fund .................................. 0 704,080 769,500 820,002 TOTAL $ 299,089,149 $ 340,234,514 $ 222,310,700 $ 247,863,783 Less Interfund Operating Transfers* (16,672,304) (18,732,000) (Increase) Decrease of Reserves (10,469,256) (21,456,612) TOTAL BUDGET SUMMARY REVENUES $ 195,169,140 $ 207,675,172 Description 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
*Interfund Operating Transfers are transfers within the same fund group on the Budget Summary Financial Information
City of Milpitas 45
79 Item # 1.

GENERAL FUND (100)

PROPERTY TAXES
3010 Secured & Unsecured ........................................... $19,745,532 $21,345,836 $21,312,839 $22,449,950 3013 VLF ........................................................................... 7,912,802 8,498,010 9,007,880 9,195,231 3014 ERAF ....................................................................... 2,295,848 3,303,865 2,467,078 2,162,451 3051 RPTTF ..................................................................... 7,844,901 7,945,590 8,482,120 8,828,560 sub-total 37,799,083 41,093,301 41,269,917 42,636,192

SALES TAXES
3110 Sales and Use Tax ................................................. 24,173,315 22,839,166 24,655,000 26,425,044 3111 Public Safety Sales and Use Tax ........................ 885,010 944,357 978,000 1,093,372 3113 Measure F Sales Tax ............................................. 0 1,330,572 6,308,250 6,409,019 sub-total 25,058,325 25,114,095 31,941,250 33,927,435

OTHER TAXES
3120 Real Estate Transfer Tax ...................................... 720,932 677,039 686,526 695,996 3140 Business License Tax ............................................ 328,115 312,676 306,699 312,676 3511 Motor Vehicle In-Lieu ............................................ 60,333 57,179 30,196 58,780 sub-total 1,109,380 1,046,894 1,023,421 1,067,452

FRANCHISE FEES
3131 Electric Franchise .................................................. 1,325,038 1,469,518 1,571,470 1,642,186 3132 Gas Franchise ........................................................ 282,339 290,889 277,035 291,395 3133 Garbage Franchise-Commercial ......................... 3,069,769 2,837,837 3,238,808 3,129,455 3138 CATV Franchise ..................................................... 496,045 437,232 663,820 385,392 sub-total 5,173,191 5,035,476 5,751,133 5,448,428

TRANSIENT OCCUPANCY TAX
3150 Transient Occupancy Tax ..................................... 11,376,522 4,213,326 7,713,639 8,329,238 sub-total 11,376,522 4,213,326 7,713,639 8,329,238

LICENSES, PERMITS, AND FINES
3210 Building Permit & Inspection Fees ...................... 4,585,232 6,428,337 4,329,292 6,538,000 3217 Building Plan Review Fees .................................. 1,958,461 2,100,846 3,021,296 2,415,000 3220 Fire Permit & Inspection Fees ............................. 1,361,750 1,358,782 1,647,182 1,440,000 3240 Fire Annual Permit & Inspection Fees ................ 751,662 783,525 764,067 789,013 3260 Other Licenses & Permits ..................................... 43,482 51,627 142,935 52,500 3300 Fines & Forfeits ...................................................... 338,753 270,179 372,045 250,246 sub-total 9,039,340 10,993,296 10,276,817 11,484,759

USE OF MONEY AND PROPERTY
3430 Investment Interest ................................................ 2,047,377 1,142,062 500,000 264,000 3770 Sale of Property, Plant, & Equipment ................. 2,764 2,500 0 0 sub-total 2,050,141 1,146,633 500,000 264,000
Revenues by Fund (Detail) 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
Financial Information
46 City of Milpitas
80 Item # 1.

INTERGOVERNMENTAL
3550 Federal Contributions ............................................ 985,984 4,472,801 834,571 561,728 3560 State Contributions ................................................ 172,576 145,264 0 200,000 3570 County Contributions ............................................. 226,726 165,021 230,000 220,000 3580 Other Restricted Grants ........................................ 57,605 59,874 20,000 20,000 sub-total 1,442,891 4,842,960 1,084,571 1,001,728

CHARGES FOR CURRENT SERVICES
3600 General Government Service Charges .............. 660,803 702,661 311,538 528,574 3610 Engineering Service Charges .............................. 1,881,074 1,375,646 1,148,994 1,427,052 3630 Fire Service Charges ............................................ 301,174 464,305 183,258 471,500 3640 Police Service Charges ........................................ 756,983 800,068 290,822 775,521 3650 Recreation Service Charges ................................ 1,144,804 761,935 1,894,481 2,115,386 3660 Building Service Charges ..................................... 11,488 (33,244) 18,326 31,000 3680 Planning Service Charges .................................... 467,355 420,597 308,550 550,420 sub-total 5,223,681 4,496,538 4,155,969 5,899,453

OTHER REVENUE
3710 Development .......................................................... 50,412 143,901 120,000 149,657 3740 Reimbursements .................................................... 0 15,639 0 0 3750 Donations ................................................................ 0 0 50,000 0 3790 Miscellaneous Other Revenue ............................ 231,313 277,900 200,000 200,000 sub-total 281,725 437,440 370,000 349,657

OPERATING TRANSFERS IN
3806 Op Trfs in from Solid Waste Service ................... 99,456 109,778 138,558 157,997 3809 Op Tfrs in Street Improv Fund ............................. 26,564 0 0 0 3812 Op Trfs in from Water Fund .................................. 2,725,061 2,748,779 2,571,407 2,687,393 3815 Op Trfs in from Sewer Fund ................................. 1,568,485 1,585,433 1,482,966 1,444,196 3819 Op Trfs in from Other ............................................ 1,600,000 2,175,000 2,360,000 2,879,042 3822 Op Trfs in from General Gov't Fund .................... 0 0 0 0 3826 Op Trfs in from Measure I TOT Fund .................. 0 0 0 0 3852 Appn Tfr in from General Gov't Fund .................. 0 4,000,000 0 0 sub-total 6,019,566 10,618,990 6,552,931 7,168,628
TOTAL (100) 104,573,845 109,038,949 110,639,648 117,576,970 1452-1474 S. MAIN (103)
3430 Investment Interest ................................................ 21,440 11,767 0 0 3600 General Government Service Charges .............. 134,096 77,100 70,000 70,000 TOTAL (103) 155,536 88,867 70,000 70,000
Revenues by Fund (Detail) 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
Financial Information
City of Milpitas 47
81 Item # 1.

ABANDON VEH ABATEMENT (105)
3570 County Contributions ............................................. 79,078 91,364 70,000 80,000 3899 Op Trfs in from Subsidiary CIP Fund .................. 0 0 0 0 TOTAL (105) 79,078 91,364 70,000 80,000
SHORT TERM DISABILITY (106)
3899 Op Trfs in from Subsidiary CIP Fund .................. 0 52,662 0 0 TOTAL (106) 0 52,662 0 0
UTILITY RATE ASSISTANCE (109)
3430 Investment Interest ................................................ 8,517 4,416 0 0 3790 Miscellaneous Other Revenue ............................ 158,413 5,069 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 100,000 0 0 0 TOTAL (109) 266,930 9,485 0 0
REDEVELOPMENT ADMINISTRATION (150)
3899 Op Trfs in from Subsidiary CIP Fund .................. 29,037 14,252 0 0 TOTAL (150) 29,037 14,252 0 0
HETCH HETCHY GROUND LEASE (211)
3430 Investment Interest ................................................ 30,002 22,382 24,000 39,539 TOTAL (211) 30,002 22,382 24,000 39,539
PUBLIC ART FUND-NONRESTRICTED (213)
3430 Investment Interest ................................................ 22,767 12,483 18,500 30,944 3710 Development .......................................................... 475,411 103,857 0 0 TOTAL (213) 498,178 116,340 18,500 30,944
COMMUNITY PLANNING FEE FUND (214)
3430 Investment Interest ................................................ 16,291 6,902 9,500 16,846 3680 Planning Service Charges .................................... 336,920 242,047 380,000 254,000 TOTAL (214) 353,211 248,949 389,500 270,846
COMMUNITY BENEFIT FUND (215)
3430 Investment Interest ................................................ 5,209 3,239 4,000 9,414 3710 Development .......................................................... 0 100,000 0 0 TOTAL (215) 5,209 103,239 4,000 9,414
AFFORDABLE HOUSING FUND (216)
3430 Investment Interest ................................................ 63,987 39,167 50,500 129,124 3710 Development .......................................................... 1,801,632 2,049,111 800,000 500,000 3819 Op Trfs in from Other ............................................ 0 0 0 0 3831 Appn Transfers in from General Fund ................ 0 0 0 0 TOTAL (216) 1,865,619 2,088,278 850,500 629,124
Revenues by Fund (Detail) 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
Financial Information
48 City of Milpitas
82 Item # 1.

AFFORDABLE HOUSING FUND UNRESTR. (217)
3434 Investment Interest ............................................... 41,407 26,159 32,500 56,574 TOTAL (217) 41,407 26,159 32,500 56,574
GAS TAX FUND (221)
3430 Investment Interest ................................................ 38,848 18,200 29,500 42,674 3540 Gas Tax ................................................................... 1,739,693 1,698,917 1,941,304 2,192,820 3802 Op Trfs in from Gas Tax Fund .............................. 0 0 0 0 3809 Op Tfrs in Street Improv Fund ............................. 131,350 0 0 0 TOTAL (221) 3,230,202 1,717,117 1,970,804 2,235,494 SB1 ROAD MAINTENANCE & REHABILITATION
(225)
3549 Road Maintenance & Rehabilitation ................... 0 1,445,283 1,489,911 1,724,712 TOTAL (225) 0 1,445,283 1,489,911 1,724,712
95-1 LIGHTING/LSCAPE DIST (235)
3430 Investment Interest ................................................ 570 302 200 1,084 3720 Special Assessments ............................................ 356,565 368,147 392,493 411,156 3801 Op Trfs in from General Fund .............................. 0 0 19,984 21,360 TOTAL (235) 357,135 368,449 412,677 433,600
98-1 LIGHTING/LSCAPE DIST (236)
3430 Investment Interest ................................................ 107 130 100 794 3720 Special Assessments ............................................ 43,622 45,434 48,504 48,317 3801 Op Trfs in from General Fund .............................. 0 0 20,606 20,506 TOTAL (236) 43,729 45,564 69,210 69,617
05 COMMUNITY FCLTY DIST (237)
3430 Investment Interest ................................................ 26,716 16,330 23,200 42,958 3720 Special Assessments ............................................ 1,203,336 1,273,881 1,230,000 1,230,000 TOTAL (237) 1,230,052 1,290,211 1,253,200 1,272,958 08 COMMUNITY FCLTY DIST (238)
3430 Investment Interest ................................................ 3,682 12,043 5,100 9,371 3720 Special Assessments ............................................ 1,913,461 2,154,437 2,458,079 2,926,571 TOTAL (238) 1,917,143 2,166,480 2,463,179 2,935,942 HCD FUND (250)
3550 Federal Contributions ............................................ 397,259 1,473,732 1,265,213 685,840 TOTAL (250) 397,259 1,473,732 1,265,213 685,840
HCD LOAN (251)
3430 Investment Interest ................................................ 0 0 4,400 10,952 TOTAL (251) 0 0 4,400 10,952
Revenues by Fund (Detail) 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
Financial Information
City of Milpitas 49
83 Item # 1.

SUPPLEMENTAL LAW ENFORCEMENT (261)
3430 Investment Interest ................................................ 3,011 1,905 3,000 6,078 3560 State Contributions ................................................ 207,885 160,486 0 100,000 TOTAL (261) 210,896 162,391 3,000 106,078
STATE ASSET SEIZURE (262)
3430 Investment Interest ................................................ 1,274 705 1,000 1,237 3560 State Contributions ................................................ 4,717 1,877 0 0 TOTAL (262) 5,991 2,582 1,000 1,237
FEDERAL ASSET SEIZURE (263)
3430 Investment Interest ................................................ 1,241 667 1,000 1,128 TOTAL (263) 1,241 667 1,000 1,128
FEDERAL GRANTS POLICE DEPARTMENT (267)
3550 Federal Contributions ............................................ 34,082 111,516 0 0 TOTAL (267) 34,082 111,516 0 0
STATE GRANTS POLICE DEPARTMENT (268)
3430 Investment Interest ................................................ 14,532 9,663 12,200 13,972 3560 State Contributions ................................................ 25,714 97,857 0 0 TOTAL (268) 40,246 107,520 12,200 13,972
GRANTS FIRE DEPARTMENT (269)
3550 Federal Contributions ............................................ 0 0 0 0 3570 County Contributions ............................................. (44) 18,290 0 0 TOTAL (269) (42) 17,799 200 0
SOLID WASTE SERVICES (280)
3139 County-wide AB 939 Fee ...................................... 200,198 272,781 210,000 210,000 3134 Garbage Franchise-NonComm-Resi .................. 0 0 0 400,000 3430 Investment Interest ................................................ 37,017 16,921 27,000 36,650 3560 State Contributions ................................................ 5,553 23,850 0 0 3610 Engineering Service Charges .............................. 0 0 0 0 3670 Utility Charges ........................................................ 0 0 0 0 3740 Reimbursements .................................................... 0 0 0 0 3790 Miscellaneous Other Revenue ............................ 0 (68) 0 0 3822 Op Trfs in from General Gov't Fund .................... 0 0 0 0 TOTAL (280) 242,768 313,484 237,000 646,650
HOUSING AUTHORITY (295)
3430 Investment Interest ................................................ 154,220 82,959 122,000 214,605 3600 General Government Service Charges .............. 102,487 139,679 149,000 100,000 3770 Sale of Property, Plant, & Equipment ................. 0 0 0 0 TOTAL (295) 256,707 222,638 271,000 314,605
Revenues by Fund (Detail) 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
Financial Information
50 City of Milpitas
84 Item # 1.

STREET FUND (310)
3430 Investment Interest ................................................ 88,064 68,471 70,100 0 3790 Miscellaneous Other Revenue ............................ 0 0 0 0 3831 Appn Transfers in from General Fund ................ 0 42,298 0 0 TOTAL (310) 88,064 110,769 70,100 0
STREET CIP (311)
3560 State Contributions ................................................ 0 1,615,314 500,000 1,761,560 3570 County Contributions ............................................. 3,097,585 0 0 0 3710 Development .......................................................... 0 314 0 0 3802 Op Trfs in from Gas Tax Fund .............................. 4,371,569 1,596,569 1,585,568 378,026 3810 Op Trfs in from Park Improvement ...................... 0 0 0 0 3815 Op Trfs in from Sewer Fund ................................. 0 0 0 0 3819 Op Trfs in from Other ............................................ 0 0 1,500,000 1,444,414 3822 Op Trfs in from General Gov't Fund .................... 0 0 100,000 0 3824 Op Trfs in Transit Area Fund ................................ 245,000 0 0 0 3826 Op Trfs in from Measure I TOT Fund .................. 0 0 0 0 3849 Other Appn Transfers In ........................................ 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 880,000 74,335 764,432 800,000 TOTAL (311) 10,194,154 3,286,532 4,450,000 4,384,000 TRAFFIC IMPACT FEE (312)
3430 Investment Interest ................................................ 0 0 0 0 3710 Development .......................................................... 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 7,831 0 0 0 TOTAL (312) 7,831 0 0 0
VEHICLE REGISTRATION FEE (314)
3430 Investment Interest ................................................ 4,793 7,327 6,700 0 3570 County Contributions ............................................. 510,824 0 0 0 3809 Op Tfrs in Street Improv Fund ............................. 0 0 0 0 3822 Op Trfs in from General Gov't Fund .................... 0 0 264,432 0 3829 Op Trfs in from Vehicle Registration Fee ........... 0 0 0 0 TOTAL (314) 515,617 7,327 271,132 0
CALAVERAS WIDENING IMPACT FEE (315)
3430 Investment Interest ................................................ 28,220 16,436 23,500 0 3710 Development .......................................................... 11,087 (122,124) 215,000 0 TOTAL (315) 294,255 (105,688) 238,500 0
MONTAGUE WIDENING IMPACT FEE (316)
3430 Investment Interest ................................................ 0 0 0 0 TOTAL (316) 0 0 0 0
MILPITAS BUSINESS PARK IMPACT FEE (317)
3430 Investment Interest ................................................ (1,804) 0 0 0 TOTAL (317) (1,804) 0 0 0
Revenues by Fund (Detail) 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
Financial Information
City of Milpitas 51
85 Item # 1.

PARK IMPROVEMENT FUND (320)
3430 Investment Interest ................................................ 386,347 105,295 167,500 0 3712 Park Development Fees ....................................... 0 0 0 5,124,443 3822 Op Trfs in from General Gov't Fund .................... 0 0 0 0 3824 Op Trfs in Transit Area Fund ................................ 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 1,100,000 649,000 0 0 TOTAL (320) 1,486,347 754,295 167,500 5,124,443
PARK IMPROVEMENT CIP (321)
3815 Op Trfs in from Sewer Fund ................................. 0 0 0 0 3822 Op Trfs in from General Gov't Fund .................... 1,250,000 0 0 0 3824 Op Trfs in Transit Area Fund ................................ 300,000 0 0 0 3831 Appn Transfers in from General Fund ................ 0 0 0 0 3852 Appn Transfers in from General Gov't ................ 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 1,400,000 0 135,000 580,000 TOTAL (321) 2,950,000 0 135,000 580,000
MIDTOWN PARK FUND (322)
3430 Investment Interest ................................................ 19,632 17,035 22,500 0 3710 Development .......................................................... 607,401 0 250,000 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 0 0 0 0 TOTAL (320) 627,033 17,035 272,500 0
GENERAL GOVERNMENT (330)
3430 Investment Interest ................................................ 570,581 278,955 396,000 0 3801 Op Trfs in from General Fund .............................. 4,000,000 0 0 0 3809 Op Tfrs in Street Improv Fund ............................. 0 200,000 0 0 3810 Op Trfs in from Park Improvement ...................... 0 0 0 0 3822 Op Trfs in General Government .......................... 0 1,500,000 0 0 3823 Op Trfs in Storm Drain Fund ................................ 1,000,000 1,580,000 0 0 3831 Appn Transfers in from General Fund ................ 0 84,597 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 4,352,245 4,600,387 0 0 3982 Capital Leases ........................................................ 0 0 0 0 TOTAL (330) 9,922,826 8,243,939 396,000 0
GENERAL GOVERNMENT CIP (331)
3560 State Contributions ................................................ 0 0 433,429 0 3580 Other Restricted Grants ........................................ 29,000 0 0 0 3710 Development .......................................................... 0 0 0 0 3801 Op Trfs in from General Fund .............................. 0 0 0 0 3802 Op Trfs in from Gas Tax Fund .............................. 800,000 395,090 608,947 595,000 3803 Op Trfs in from Gas Tax Fund .............................. 0 0 273,500 80,000 3809 Op Tfrs in Street Improv Fund ............................. 0 1,200,000 0 0 3810 Op Trfs in from Park Improvement ...................... 0 750,000 0 650,000 3815 Op Trfs in from Sewer Fund ................................. 0 129,910 0 0 Revenues by Fund (Detail) 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
Financial Information
52 City of Milpitas
86 Item # 1.
3817 Op Trfs in from Equipment Replacement ........... 0 0 161,131 0 3819 Op Trfs in from Other ............................................ 2,075,000 1,350,000 1,422,485 924,000 3824 Op Trfs in Transit Area Fund ................................ 0 0 78,000 144,000 3827 Op Trfs in from LLMD Fund .................................. 108,000 97,500 4,000 11,000 3847 Appn Transfers in from Equipment ..................... 0 0 0 0 3849 Other Appn Transfers In ........................................ 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 9,664,143 8,067,296 3,010,440 4,397,000 TOTAL (331) 12,676,143 11,989,796 5,991,932 6,801,000 2020 FIRE STATION BONDS (334)
3970 Bond Proceeds ....................................................... 0 0 0 0 TOTAL (331) 0 0 0 0
STORM DRAIN DEVELOPMENT (340)
3430 Investment Interest ................................................ 132,357 40,132 50,900 0 3710 Development .......................................................... 105,739 664,673 340,000 306,332 3831 Appn Transfers in from General Fund ................ 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 0 75,000 0 0 TOTAL (340) 238,096 779,805 390,900 306,332
STORM DRAIN CIP (341)
3815 Op Trfs in from Sewer Fund ................................. 0 0 0 0 3822 Op Trfs in from General Gov't Fund .................... 250,000 0 0 200,000 3852 Appn Transfers in General Government ............ 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 1,505,000 3,386,590 0 0 TOTAL (341) 1,755,000 3,386,590 0 200,000
TRANSIT AREA IMPACT FEE FUND (350)
3430 Investment Interest ................................................ 1,278,584 683,854 1,000,000 0 3710 Development .......................................................... 22,158,628 13,065,471 13,000,000 18,707,824 3812 Op Trfs in from Water Fund .................................. 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 2,700,000 599,609 0 0 TOTAL (350) 26,137,212 14,348,934 14,000,000 18,707,824 TRANSIT AREA IMPACT FEE CIP FUND (351)
3570 County Contributions ............................................. 0 0 0 0 3710 Development .......................................................... 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 11,619,251 3,401,250 3,400,000 3,499,000 TOTAL (351) 11,619,251 3,401,250 3,400,000 3,499,000 WATER M & O FUND (400)
3430 Investment Interest ................................................ 552,105 352,604 372,000 369,729 3550 Federal Contributions ............................................ 0 13,761 0 0 3580 Other Restricted Grants ........................................ 140,154 97,807 0 0 3620 Public Works Service Charges ............................ 0 0 0 0 3670 Utility Charges ........................................................ 28,727,511 30,582,368 31,143,569 33,144,215 3790 Miscellaneous Other Revenue ............................ 17,601 0 17,601 0 3981 Contributions-Proprietary Fund ........................... 0 0 0 0 Revenues by Fund (Detail) 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
Financial Information
City of Milpitas 53
87 Item # 1.
3809 Op Trfs in from Street Fund .................................. 3,089 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 0 150,000 0 0 TOTAL (400) 29,440,460 31,196,540 31,533,170 33,513,944 WATER CIP (401)
3810 Op Trfs in from Park Improvement ...................... 0 0 0 0 3824 Op Trfs in Transit Area Fund ................................ 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 5,126,172 10,293,306 2,090,000 1,515,000 TOTAL (401) 5,126,172 10,293,306 2,090,000 1,515,000 WATER LINE EXTENSION FUND (402)
3430 Investment Interest ................................................ 50,975 29,582 42,000 78,679 3710 Development .......................................................... 281,064 326,418 297,000 1,002,155 3790 Miscellaneous Other Revenue ............................ 7,216 9,621 7,216 7,215 3812 Op Trfs in from Water Fund .................................. 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 0 0 0 0 TOTAL (402) 339,255 365,621 346,216 1,088,049
2019 WATER BONDS (403)
3970 Bond Proceeds ....................................................... 0 0 0 0 TOTAL (403) 0 0 0 0
WATER INFRASTRUCTURE REPLACEMENT (405)
3430 Investment Interest ................................................ 200,083 103,066 150,000 276,153 3670 Utility Charges ........................................................ 3,937,947 3,946,747 3,984,653 3,926,784 3899 Op Trfs in from Subsidiary CIP Fund .................. 3,750,000 2,820,000 0 0 TOTAL (405) 7,888,030 6,869,813 4,134,653 4,202,937 SEWER M & O FUND (450)
3430 Investment Interest ................................................ 285,147 228,486 251,000 205,863 3435 Gain/Loss on Investments .................................... 254,038 254,038 0 0 3670 Utility Charges ........................................................ 19,293,825 19,897,503 20,657,555 24,482,217 3550 Federal Contributions ............................................ 0 13,761 0 0 3580 Other Restricted Grants ........................................ 0 0 0 0 3790 Miscellaneous Other Revenue ............................ 0 0 0 0 3809 Op Trfs in from Street Fund .................................. 103,089 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 0 207,646 0 0 TOTAL (450) 19,936,099 20,601,434 20,908,555 24,688,080 SEWER CIP (451)
3899 Op Trfs in from Subsidiary CIP Fund .................. 22,651,274 10,474,415 6,480,000 6,947,000 TOTAL (451) 22,651,274 10,474,415 6,480,000 6,947,000 TREATMENT PLANT CONSTRUCTION (452)
3430 Investment Interest ................................................ 106,447 57,522 84,400 156,722 3710 Development .......................................................... 337,523 422,502 452,000 1,417,137 TOTAL (452) 443,970 480,024 536,400 1,573,859
Revenues by Fund (Detail) 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
Financial Information
54 City of Milpitas
88 Item # 1.
2017 SEWER REFUNDING BONDS (453)
3430 Investment Interest ................................................ 58 0 0 0 TOTAL (453) 58 0 0 0
2019 SEWER BONDS (454)
3970 Bond Proceeds ....................................................... 0 0 0 0 TOTAL (454) 0 0 0 0
SEWER INFRASTRUCTURE REPLACEMENT (455)
3430 Investment Interest ................................................ 283,877 251,601 310,500 696,868 3899 Intrafund Trf In-Parent/Child ................................. 6,080,000 9,239,359 0 0 TOTAL (455) 6,363,877 9,490,960 310,500 696,868
EQUIPMENT REPLACEMENT FUND (500)
3430 Investment Interest ................................................ 189,351 105,981 155,000 280,052 3610 Engineering Service Charges .............................. 1,200 1,100 0 0 3620 Public Works Service Charges ............................ 3,422,578 3,355,930 3,400,000 3,400,000 3670 Utility Charges ........................................................ 0 0 0 0 3770 Sale of Property, Plant and Equipment .............. 42,754 25,043 0 0 3790 Miscellaneous Other Revenue ............................ 1,696 148,690 0 0 3981 Contributions-Proprietary Fund ........................... 0 0 0 0 3822 Op Trfs in from General Gov't Fund .................... 0 0 0 0 TOTAL (500) 3,657,579 3,636,744 3,555,000 3,680,052

INFORMATION TECHNOLOGY REPLACEMENT
(505)
3430 Investment Interest ................................................ 0 6,847 10,500 19,197 3801 Op Trfs in from General Fund .............................. 300,000 300,000 300,000 300,000 TOTAL (505) 300,000 306,847 310,500 319,197
PERMIT AUTOMATION FUND (506)
3430 Investment Interest ................................................ 0 9,988 19,500 20,003 3601 General Government Service Charges .............. 0 694,092 750,000 800,000 TOTAL (506) 0 704,080 769,500 820,003
TOTAL REVENUES $ 290,480,853 $ 261,960,568 $ 222,310,700 $ 247,863,784 Less Interfund Operating Transfers* (16,672,304) (18,732,000) (Increase) Decrease of Reserves (10,469,256) (21,456,612) TOTAL BUDGET SUMMARY REVENUES $ 195,169,140 $ 207,675,172 Revenues by Fund (Detail) 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
*Interfund Operating Transfers are transfers within the same fund group on the Budget Summary Financial Information
City of Milpitas 55
89 Item # 1.
100 General Fund ........................................................ $111,291,794 $141,732,697 $110,435,632 $117,380,000 103 1452-1474 S. Main ................................................ 64,724 34,214 61,000 64,000 105 Abandon Veh Abatement ..................................... 77,904 94,083 10,000 10,000 109 Utility Rate Assistance .......................................... 5,540 14,349 256,700 256,700 150 Redevelopment Administration ........................... 27,740 15,793 16,315 16,270 211 H-Hetch Ground Lease ......................................... 35,258 36,209 37,500 39,000 213 Public Art Fund-Nonrestricted ............................. 9,587 97,500 273,500 95,466 214 Community Planning Fee Fund ........................... 664,988 909,165 826,768 530,533 215 Community Benefit Fund ...................................... 0 0 0 0 216 Affordable Housing Fund ...................................... 176,420 636,750 692,742 1,194,209 221 Gas Tax Fund ......................................................... 5,244,458 1,991,659 2,194,515 973,026 222 Measure B .............................................................. 0 0 0 0 225 SB1 Road Maintenance & Rehab ....................... 0 0 1,500,000 1,444,414 235 95-1 Lighting/Lscape Dist ..................................... 488,462 407,232 382,549 407,017 236 98-1 Lighting/Lscape Dist ..................................... 52,390 36,582 58,650 66,139 237 05 Community Fclty Dist ...................................... 898,188 1,085,225 1,439,385 1,764,888 238 08 Community Fclty Dist ...................................... 1,661,933 2,293,813 2,463,179 2,935,942 250 HCD Fund ............................................................... 397,259 1,473,732 1,265,213 685,840 251 HCD Loan ............................................................... 8 0 0 0 261 Supplemental Law Enforcement ......................... 212,342 163,315 0 0 262 State Asset Seizure ............................................... 0 0 90,000 30,000 263 Federal Asset Seizure ........................................... 0 0 90,000 30,000 267 Justice Assistance Grant ...................................... 34,082 141,292 0 0 268 Justice Assistance Grant 2009 ............................ 25,714 97,858 0 0 269 Grant Fund ............................................................. 0 18,290 0 0 280 Solid Waste Services ............................................ 243,201 619,442 970,527 942,390 295 Housing Authority .................................................. 795,197 407,578 952,973 544,612 310 Street Fund ............................................................. 164,092 1,610,661 0 300,000 311 Street CIP ............................................................... 8,035,899 2,820,601 4,450,000 4,384,000 314 Vehicle Registration Fee ...................................... 764,432 74,335 764,432 500,000 317 Milpitas Business Pk Impact Fe .......................... 380,000 0 0 0 320 Park Improvement Fund ....................................... 0 954,656 35,000 655,000 321 Park Improvement CIP ......................................... 8,831,573 6,152,071 135,000 580,000 322 Midtown Park Fund ............................................... 1,475,000 300,000 450,000 575,000 330 General Government ............................................ 11,943,179 6,501,129 3,110,440 4,597,000 Expenditures by Fund 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
Financial Information
56 City of Milpitas
90 Item # 1.
331 General Government CIP ..................................... 11,719,782 20,261,489 5,991,932 6,801,000 334 2020 Fire Station Bonds ....................................... 0 5,273,158 0 0 340 Storm Drain Development .................................... 1,505,000 2,520,000 0 0 341 Storm Drain CIP ..................................................... 1,872,108 3,779,969 0 200,000 350 Transit Area Impact Fee Fund ............................. 18,120,524 14,717,501 3,493,429 3,688,659 351 Transit Area Impact Fee CIP Fund ..................... 6,910,743 1,684,920 3,400,000 3,499,000 400 Water M & O Fund ................................................ 26,380,537 21,529,448 28,306,246 31,253,463 401 Water CIP ............................................................... 5,886,781 11,252,303 2,090,000 1,515,000 402 Water Line Extension Fund .................................. 200,000 228,000 0 0 403 2019 Water Bonds ................................................. 1,115,055 5,488,307 0 0 405 Water Infrastructure Replmnt ............................... 5,027,519 25,477,973 3,220,050 2,824,050 450 Sewer M & O Fund ................................................ 17,643,288 59,434,004 15,083,053 16,474,533 451 Sewer CIP ............................................................... 23,796,569 3,319,288 6,480,000 6,947,000 452 Treatment Plant Construction .............................. 1,200,000 200,000 0 6,300,000 454 2019 Wastewater Bonds ...................................... 19,627,801 9,676,415 2,062,755 0 455 Sewer Infrastrture Repmnt ................................... 2,150,000 653,910 4,633,730 909,000 500 Equipment Mgnt Fund .......................................... 1,856,047 3,227,474 3,047,834 3,723,503 505 Information Tec Replmt ......................................... 0 315,828 250,000 250,000 506 Permit Automation Fund ....................................... 0 1,303,493 820,395 1,020,518 TOTAL $ 299,272,651 $ 361,063,711 $ 211,841,444 $ 226,407,172 Less Interfund Operating Transfers* (16,672,304) (18,732,000)

TOTAL BUDGET SUMMARY
EXPENDITURES $ 195,169,140 $ 207,675,172
Expenditures by Fund 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
*Interfund Operating Transfers are transfers within the same fund group on the Budget Summary Financial Information
City of Milpitas 57
91 Item # 1.

Expenditures by Fund (Detail)
GENERAL FUND (100)
City Council .......................... $348,723 $209,000 $0 $0 $0 $0 $557,723 City Manager ........................ 1,834,015 315,350 0 0 0 0 2,149,365 City Clerk .............................. 527,660 40,000 0 0 0 0 567,660 Economic Development ..... 764,737 201,110 0 0 0 0 965,847 City Attorney ......................... 827,846 371,100 0 0 0 0 1,198,946 Building Inspection .............. 2,270,659 64,577 0 0 0 0 2,335,236 Building Safety and
Housing Administration ....... 685,904 11,000 0 0 0 0 696,904 Housing and
Neighborhood Svcs ............. 609,548 594,427 0 0 0 0 1,203,975 Permit Center ....................... 460,278 12,000 0 0 0 0 472,278 Plan Review ......................... 1,254,470 212,600 0 0 0 0 1,467,070 Design & Construction ........ 1,564,940 7,480 0 0 0 0 1,572,420 Engineering Administration 319,517 20,338 0 0 0 0 339,855 Land Development .............. 1,223,700 171,250 0 0 0 0 1,394,950 Traffic Engineering .............. 547,686 116,445 0 0 0 0 664,131 Finance Administration ....... 1,837,389 346,409 0 0 0 0 2,183,798 Finance Operations ............. 1,740,675 60,590 0 0 0 0 1,801,265 Fiscal Services-Utilities ....... 275,780 108,250 0 0 0 0 384,030 EMS Transport Services ..... 0 68,627 37,728 0 0 0 106,355 Fire Administration ............... 1,811,289 80,191 0 0 0 0 1,891,480 Fire Prevention ..................... 2,626,114 25,800 0 0 0 0 2,651,914 Fire Prevention
Administration ...................... 977,788 61,186 0 0 0 0 1,038,974 Office of Emergency
Management ........................ 212,673 39,500 0 0 0 0 252,173 Operations Division ............. 19,419,198 2,577,012 251,763 0 0 0 22,247,973 Human Resources ............... 1,418,862 518,722 0 0 0 0 1,937,584 Information Technology ...... 2,563,103 1,528,841 0 0 0 0 4,091,944 Long Range Planning ......... 39,857 0 0 0 0 0 39,857 Planning ................................ 1,828,756 59,200 0 0 0 0 1,887,956 Communications .................. 4,523,352 304,295 0 0 0 0 4,827,647 Community Relations .......... 1,029,138 26,763 0 0 0 0 1,055,901 Crossing Guards .................. 510,946 2,000 0 0 0 0 512,946 Investigations ....................... 4,680,529 382,183 8,026 0 0 0 5,070,738 Patrol Services ..................... 20,392,218 887,549 66,139 0 0 0 21,345,906 Personnel & Training ........... 389,631 213,175 0 0 0 0 602,806 Police Administration ........... 1,223,081 15,073 0 0 0 0 1,238,154 Records ................................. 1,268,219 232,867 0 0 0 0 1,501,086 Traffic ..................................... 1,682,257 87,763 0 0 0 0 1,770,020 Compliance ........................... 68,056 295,854 0 0 0 0 363,910 FUND/FUNCTION Personal
Services
Supplies
Contractual
Services
Capital
Outlay
Debt
Service
Capital
Improvements
Operating
Transfers
Out
Total
Financial Information
58 City of Milpitas
92 Item # 1.

Facilities Maintenance ........ 1,741,463 1,048,375 0 0 0 0 2,789,838 Park Maintenance ............... 99,740 1,165,889 0 0 0 0 1,265,629 Public Works
Administration ...................... 723,964 75,180 0 0 0 0 799,144 Solid Waste Services .......... 8,000 56,000 0 0 0 0 64,000 Street Maintenance ............. 1,348,342 525,521 7,662 0 0 0 1,881,525 Trees & Landscape Mnt .... 944,264 540,701 0 0 0 0 1,484,965 Utility Maintenance .............. 794,851 223,302 0 0 0 0 1,018,153 Aquatics ................................ 397,040 11,300 0 0 0 0 408,340 General Classes .................. 109,113 269,599 0 0 0 0 378,712 Marketing .............................. 181,111 77,200 0 0 0 0 258,311 Performing Arts .................... 0 79,900 0 0 0 0 79,900 Recreation Administration .. 1,656,008 155,092 0 0 0 0 1,811,100 Senior Services .................... 449,391 241,518 0 0 0 0 690,909 Social Services .................... 143,288 29,000 0 0 0 0 172,288 Special Events ..................... 176,977 252,418 0 0 0 0 429,395 Sports & Fitness .................. 540,340 35,759 0 0 0 0 576,099 Youth Programs ................... 900,188 144,740 0 0 0 0 1,044,928 Equipment to be
Depreciated .......................... 0 0 0 0 0 0 0 Non-Departmental ............... (465,875) 6,763,196 0 0 0 0 6,297,321 Transfers Out ....................... 0 0 0 0 0 341,866 341,866 sub-total (100) 93,506,799 21,963,217 371,318 1,196,800 0 341,866 117,380,000 1452-1474 S. MAIN (103)
1452 S. Main Street
Properties ............................. 0 64,000 0 0 0 0 64,000 sub-total (103) 0 64,000 0 0 0 0 64,000

ABANDON VEHICLE
ABATEMENT (105)
Traffic ..................................... 10,000 0 0 0 0 0 10,000 sub-total (105) 10,000 0 0 0 0 0 10,000

UTILITY RATE
ASSISTANCE (109)
Non-Departmental ............... 0 256,700 0 0 0 0 256,700 sub-total (109) 0 256,700 0 0 0 0 256,700

REDEVELOPMENT
ADMINISTRATION (150)
Finance Administration ....... 3,944 0 0 0 0 0 3,944 Finance Operations ............. 10,959 0 0 0 0 0 10,959 Fiscal Services-Utilities ....... 367 0 0 0 0 0 367 sub-total (150) 15,270 1,000 0 0 0 0 16,270
FUND/FUNCTION Personal
Services
Supplies
Contractual
Services
Capital
Outlay
Debt
Service
Capital
Improvements
Operating
Transfers
Out
Total
Financial Information
City of Milpitas 59
93 Item # 1.

HETCH HETCHY
GROUND LEASE (211)
Non-Departmental ............... 0 39,000 0 0 0 0 39,000 sub-total (211) 0 39,000 0 0 0 0 39,000

PUBLIC ART FUND-
NONRESTRICTED (213)
Recreation Administration .. 15,466 0 0 0 0 0 15,466 Transfers Out ....................... 0 0 0 0 0 80,000 80,000 sub-total (213) 15,466 0 0 0 0 80,000 95,466

COMMUNITY PLANNING
FEE FUND (214)
Long Range Planning ......... 225,856 0 0 0 0 0 225,856 Planning ................................ 104,677 0 0 0 0 0 104,677 Non-Departmental ............... 0 0 0 0 0 0 0 Transfers Out ....................... 0 0 0 0 0 200,000 200,000 sub-total (214) 330,533 0 0 0 0 200,000 530,533

AFFORDABLE HOUSING
FUND (216)
City Manager ........................ 35,165 0 0 0 0 0 35,165 Planning ................................ 93,142 0 0 0 0 0 93,142 Building Safety and
Housing Administration ....... 181,410 0 0 0 0 0 181,410 City Attorney ......................... 0 21,000 0 0 0 0 21,000 Housing and
Neighborhood Svcs ............. 766,650 0 0 0 0 0 766,650 Finance Operations ............. 96,842 0 0 0 0 0 96,842 sub-total (216) 1,173,209 21,000 0 0 0 0 1,194,209 GAS TAX FUND (221)
Transfers Out ....................... 0 0 0 0 0 973,026 973,026 sub-total (221) 0 0 0 0 0 973,026 973,026
SB1 ROAD MAINT &
REHAB (225)
Transfers Out ....................... 0 0 0 0 0 1,444,414 1,444,414 sub-total (225) 0 0 0 0 0 1,444,414 1,444,414
95-1 LIGHTING/LSCAPE
DIST (235)
Land Development .............. 400 94,766 0 0 0 0 95,166 Public Works
Administration ...................... 6,512 0 0 0 0 0 6,512 Street Maintenance ............. 34,806 0 0 0 0 0 34,806 Trees & Landscape Mnt ..... 141,537 128,996 0 0 0 0 270,533 FUND/FUNCTION Personal
Services
Supplies
Contractual
Services
Capital
Outlay
Debt
Service
Capital
Improvements
Operating
Transfers
Out
Total
Financial Information
60 City of Milpitas
94 Item # 1.

Transfers Out ....................... 0 0 0 0 0 0 0 sub-total (235) 183,255 223,762 0 0 0 0 407,017
98-1 LIGHTING/LSCAPE
DIST (236)
Land Development .............. 800 4,340 0 0 0 0 5,140 Street Maintenance ............. 437 0 0 0 0 0 437 Trees & Landscape Mnt ..... 28,762 20,800 0 0 0 0 49,562 Transfers Out ....................... 0 0 0 0 0 11,000 11,000 sub-total (236) 29,999 25,140 0 0 0 11,000 66,139 05 COMMUNITY FCLTY
DIST (237)
Park Maintenance ............... 167,960 256,260 0 0 0 0 424,220 Public Works
Administration ...................... 152,116 0 0 0 0 0 152,116 Street Maintenance ............. 280,860 0 0 0 0 0 280,860 Trees & Landscape Mnt ..... 687,019 164,873 0 0 0 0 851,892 Non-Departmental ............... 0 5,800 0 0 0 0 5,800 sub-total (237) 1,287,955 426,933 0 0 0 50,000 1,764,888 08 COMMUNITY FCLTY
DIST (238)
Park Maintenance ............... 0 53,000 0 0 0 0 53,000 Non-Departmental ............... 0 3,900 0 0 0 0 3,900 Transfers Out ....................... 0 0 0 0 0 2,879,042 2,879,042 sub-total (238) 0 56,900 0 0 0 2,879,042 2,935,942 HCD FUND (250)
Housing and
Neighborhood Services ...... 0 678,840 0 0 0 0 678,840 Non-Departmental ............... 0 7,000 0 0 0 0 7,000 sub-total (250) 0 685,840 0 0 0 0 685,840

STATE-ASSET SEIZURE
(262)
Investigations ....................... 0 0 30,000 0 0 0 30,000 sub-total (262) 0 0 30,000 0 0 0 30,000

FEDERAL ASSET
SEIZURE (263)
Investigations ....................... 0 0 30,000 0 0 0 30,000 sub-total (263) 0 0 30,000 0 0 0 30,000

SOLID WASTE
SERVICES (280)
Solid Waste .......................... 586,323 198,070 0 0 0 0 784,393 Transfers Out ....................... 0 0 0 0 0 157,997 157,997 sub-total (280) 586,323 198,070 0 0 0 157,997 942,390 FUND/FUNCTION Personal
Services
Supplies
Contractual
Services
Capital
Outlay
Debt
Service
Capital
Improvements
Operating
Transfers
Out
Total
Financial Information
City of Milpitas 61
95 Item # 1.

HOUSING AUTHORITY
(295)
Housing and
Neighborhood Services ...... 0 445,200 0 0 0 0 445,200 1432 S. Main Street
Properties ............................. 0 33,500 0 0 0 0 33,500 City Attorney ......................... 0 8,000 0 0 0 0 8,000 Non-Departmental ............... 0 57,912 0 0 0 0 57,912 sub-total (295) 0 544,612 0 0 0 0 544,612

STREET IMPROVEMENT
(310)
Transfers Out ....................... 0 0 0 0 0 300,000 300,000 sub-total (310) 0 0 0 0 0 300,000 300,000
STREET CIP (311)
Capital Improvement
Projects ................................. 0 0 0 0 4,384,000 0 4,384,000 Transfers Out ....................... 0 0 0 0 0 0 0 sub-total (311) 0 0 0 0 4,384,000 0 4,384,000

VEHICLE

REGISTRATION FEE
(314)
Transfers Out ....................... 0 0 0 0 0 500,000 500,000 sub-total (314) 0 0 0 0 0 500,000 500,000

PARK IMPROVEMENT
FUND (320)
Transfers Out ....................... 0 0 0 0 0 655,000 655,000 sub-total (320) 0 0 0 0 0 655,000 655,000

PARK IMPROVEMENT
CIP (321)
Capital Improvement
Projects ................................. 0 0 0 0 580,000 0 580,000 Transfers Out ....................... 0 0 0 0 0 0 0 sub-total (321) 0 0 0 0 580,000 0 580,000

MIDTOWN PARK FUND
(322)
Transfers Out ....................... 0 0 0 0 0 575,000 575,000 sub-total (322) 0 0 0 0 0 575,000 575,000

GENERAL
GOVERNMENT (330)
Transfers Out ....................... 0 0 0 0 0 4,597,000 4,597,000 sub-total (330) 0 0 0 0 0 4,597,000 4,597,000
FUND/FUNCTION Personal
Services
Supplies
Contractual
Services
Capital
Outlay
Debt
Service
Capital
Improvements
Operating
Transfers
Out
Total
Financial Information
62 City of Milpitas
96 Item # 1.

GENERAL
GOVERNMENT CIP (331)
Capital Improvement
Projects ................................. 0 0 0 0 6,801,000 0 6,801,000 Transfers Out ....................... 0 0 0 0 0 0 0 sub-total (331) 0 0 0 0 6,801,000 0 6,801,000
2020 FIRE STATION
BONDS (334)
Transfers Out ....................... 0 0 0 0 0 0 0 sub-total (334) 0 0 0 0 0 0 0

STORM DRAIN
DEVELOPMENT (340)
Transfers Out ....................... 0 0 0 0 0 0 0 sub-total (340) 0 0 0 0 0 0 0
STORM DRAIN CIP (341)
Capital Improvement
Projects ................................. 0 0 0 0 200,000 0 200,000 Transfers Out ....................... 0 0 0 0 0 0 0 sub-total (341) 0 0 0 0 200,000 0 200,000

TRANSIT AREA IMPACT
FEE FUND (350)
Debt Service ......................... 0 0 0 0 0 0 0 Finance Administration ....... 25,659 0 0 0 0 0 25,659 City Attorney ......................... 0 20,000 0 0 0 0 20,000 Transfers Out ....................... 0 0 0 0 0 3,643,000 3,643,000 sub-total (350) 25,659 20,000 0 0 0 3,643,000 3,688,659

TRANSIT AREA IMPACT
FEE CIP FUND (351)
Capital Improvement
Projects ................................. 0 0 0 0 3,499,000 0 3,499,000 sub-total (351) 0 0 0 0 3,499,000 0 3,499,000

WATER M & O FUND
(400)
Land Development .............. 0 0 0 0 0 0 0
Finance Administration ....... 8,171 0 0 0 0 0 8,171 Finance Operations ............. 0 0 0 0 0 0 0
Fiscal Services-Utilities ....... 832,022 271,029 0 0 0 0 1,103,051 Compliance ........................... 188,183 57,780 0 0 0 0 245,963 City Attorney ......................... 0 9,000 0 0 0 0 9,000 Public Works
Administration ...................... 688,408 210,285 0 0 0 0 898,693 Street Maintenance ............. 0 0 0 0 0 0 0 Utility Engineering ............... 675,256 171,160 0 0 0 0 846,416 Utility Maintenance .............. 1,687,561 653,584 40,000 0 0 0 2,381,145 FUND/FUNCTION Personal
Services
Supplies
Contractual
Services
Capital
Outlay
Debt
Service
Capital
Improvements
Operating
Transfers
Out
Total
Financial Information
City of Milpitas 63
97 Item # 1.

Non-Departmental ............... 74,585 22,999,046 0 0 0 0 23,073,631 Transfers Out ....................... 0 0 0 0 0 2,687,393 2,687,393 sub-total (400) 4,154,186 24,371,884 40,000 0 0 2,687,393 31,253,463 WATER CIP (401)
Capital Improvement
Projects ................................. 0 0 0 0 1,515,000 0 1,515,000 Transfers Out ....................... 0 0 0 0 0 0 0 sub-total (401) 0 0 0 0 1,515,000 0 1,515,000

WATER LINE
EXTENSION FUND (402)
Transfers Out ....................... 0 0 0 0 0 0 0 sub-total (402) 0 0 0 0 0 0 0
2019 WATER BONDS
(403)
Transfers Out ....................... 0 0 0 0 0 0 0 sub-total (403) 0 0 0 0 0 0 0
WATER

INFRASTRUCTURE
REPLACEMENT (405)
Debt Service ......................... 0 0 0 1,047,050 0 0 1,047,050 Transfers Out ....................... 0 0 0 0 0 1,777,000 1,777,000 sub-total (405) 0 0 0 1,047,050 0 1,777,000 2,824,050

SEWER M & O FUND
(450)
Fiscal Services-Utilities ....... 473,857 212,670 0 0 0 0 686,527 Finance Administration ....... 24,778 0 0 0 0 0 24,778 Compliance ........................... 120,128 71,751 0 0 0 0 191,879 Public Works
Administration ...................... 586,328 1,038,755 0 0 0 0 1,625,083 Street Maintenance ............. 0 0 0 0 0 0 0 Utility Engineering ............... 378,364 102,150 0 0 0 0 480,514 Utility Maintenance .............. 1,158,752 387,681 37,356 0 0 0 1,583,789 Debt Service ......................... 0 0 0 2,431,275 0 0 2,431,275 Non-Departmental ............... 74,585 7,931,907 0 0 0 0 8,006,492 Transfers Out ....................... 0 0 0 0 0 1,444,196 1,444,196 sub-total (450) 2,816,792 9,744,914 37,356 2,431,275 0 1,444,196 16,474,533 SEWER CIP (451)
Capital Improvement
Projects ................................. 0 0 0 0 6,947,000 0 6,947,000 Transfers Out ....................... 0 0 0 0 0 0 0 sub-total (451) 0 0 0 0 6,947,000 0 6,947,000
FUND/FUNCTION Personal
Services
Supplies
Contractual
Services
Capital
Outlay
Debt
Service
Capital
Improvements
Operating
Transfers
Out
Total
Financial Information
64 City of Milpitas
98 Item # 1.

TREATMENT PLANT
CONSTRUCTION (452)
Transfers Out ....................... 0 0 0 0 0 6,300,000 6,300,000 sub-total (452) 0 0 0 0 0 6,300,000 6,300,000
2019 WASTEWATER
BONDS (454)
Transfers Out ....................... 0 0 0 0 0 0 0 sub-total (454) 0 0 0 0 0 0 0
SEWER

INFRASTRUCTURE
REPLACEMENT (455)
Transfers Out ....................... 0 0 0 0 0 909,000 909,000 sub-total (455) 0 0 0 0 0 909,000 909,000

EQUIPMENT MGNT
FUND (500)
Compliance ........................... 0 10,000 0 0 0 0 10,000 Finance Administration ....... 11,985 0 0 0 0 0 11,985 Operations ........................... 0 0 156,877 0 0 0 156,877 Investigations ....................... 0 0 34,987 0 0 0 34,987 Patrol Services ..................... 0 0 198,016 0 0 0 198,016 Street Maintenance ............. 0 0 136,531 0 0 0 136,531 Utility Maintenance .............. 0 7,500 0 0 0 0 7,500 Fleet Maintenance ............... 926,060 1,047,121 98,000 0 0 0 2,071,181 Public Works
Administration ...................... 190,515 0 0 0 0 0 190,515 Equipment to be
Depreciated .......................... 0 0 690,947 0 0 0 690,947 Non-Departmental ............... 0 214,964 0 0 0 0 214,964 sub-total (500) 1,128,560 1,279,585 1,315,358 0 0 0 3,723,503

INFORMATION TECH
REPLMT (505)
Information Technology ...... 0 0 250,000 0 0 0 250,000 sub-total (505) 0 0 250,000 0 0 0 250,000

PERMIT AUTOMATION
FUND (506)
Permit Center ....................... 342,374 90,000 0 0 0 0 432,374 Plan Review ......................... 86,131 0 0 0 0 0 86,131 Fire Prevention
Administration ...................... 0 16,000 0 0 0 0 16,000 Information Technology ...... 192,712 143,300 0 0 0 0 336,012 Transfers Out ....................... 0 0 0 0 0 150,000 150,000 sub-total (506) 621,217 249,300 0 0 0 150,000 1,020,517 FUND/FUNCTION Personal
Services
Supplies
Contractual
Services
Capital
Outlay
Debt
Service
Capital
Improvements
Operating
Transfers
Out
Total
Financial Information
City of Milpitas 65
99 Item # 1.

TOTAL EXPENDITURES 105,885,223 60,171,857 2,074,032 4,675,125 23,926,000 29,674,934 226,407,172 Less Interfund Operating
Transfers* 0 0 0 0 0 (18,732,000) (18,732,000)

TOTAL BUDGET

SUMMARY

EXPENDITURES
$ 105,885,223 $ 60,171,857 $ 2,074,032 $ 4,675,125 $ 23,926,000 $ 10,942,934 $ 207,675,172 FUND/FUNCTION Personal
Services
Supplies
Contractual
Services
Capital
Outlay
Debt
Service
Capital
Improvements
Operating
Transfers
Out
Total
*Interfund Operating Transfers are transfers within the same fund group on the Budget Summary Financial Information
66 City of Milpitas
100
Item # 1.

Financial Information
City of Milpitas 67
101
Item # 1.

Expenditures by Function
City Council .......................... $557,723 $0 $0 $0 $0 $557,723 City Manager ........................ 2,149,365 0 0 0 35,165 2,184,530 City Clerk .............................. 567,660 0 0 0 0 567,660 Economic Development ..... 965,847 0 0 0 0 965,847 City Attorney ......................... 1,198,946 8,000 9,000 0 41,000 1,256,946 Building Inspection .............. 2,335,236 0 0 0 0 2,335,236 Building Safety and
Housing Administration ....... 696,904 0 0 0 181,410 878,314 Housing and
Neighborhood Svcs ............. 1,203,975 445,200 0 0 1,445,490 3,094,665 Permit Center ....................... 472,278 0 0 0 432,374 904,652 Plan Review ......................... 1,467,070 0 0 0 86,131 1,553,201 Design & Construction ........ 1,572,420 0 0 0 0 1,572,420 Engineering Administration 339,855 0 0 0 0 339,855 Land Development .............. 1,394,950 0 0 0 100,306 1,495,256 Traffic Engineering .............. 664,131 0 0 0 0 664,131 Finance Administration ....... 2,187,742 0 8,171 24,778 37,644 2,258,335 Finance Operations ............. 1,812,224 0 0 0 96,842 1,909,066 Fiscal Services-Utilities ....... 384,397 0 1,103,051 686,527 0 2,173,975 EMS Transport Services ..... 106,355 0 0 0 0 106,355 Fire Administration ............... 1,891,480 0 0 0 0 1,891,480 Fire Prevention ..................... 2,651,914 0 0 0 0 2,651,914 Fire Prevention
Administration ...................... 1,038,974 0 0 0 16,000 1,054,974 Office of Emergency
Management ........................ 252,173 0 0 0 0 252,173 Operations Division ............. 22,247,973 0 0 0 156,877 22,404,850 Human Resources ............... 1,937,584 0 0 0 0 1,937,584 Information Technology ...... 4,091,944 0 0 0 586,012 4,677,956 Long Range Planning ......... 39,857 0 0 0 225,856 265,713 Planning ................................ 1,887,956 0 0 0 197,819 2,085,775 Communications .................. 4,827,647 0 0 0 0 4,827,647 Community Relations .......... 1,055,901 0 0 0 0 1,055,901 Crossing Guards .................. 512,946 0 0 0 0 512,946 Investigations ....................... 5,070,738 0 0 0 94,987 5,165,725 Patrol Services ..................... 21,345,906 0 0 0 198,016 21,543,922 Personnel & Training ......... 602,806 0 0 0 0 602,806 Police Administration ........... 1,238,154 0 0 0 0 1,238,154 Records ................................. 1,501,086 0 0 0 0 1,501,086 Traffic ..................................... 1,780,020 0 0 0 0 1,780,020 Function General
Fund(1)
Housing
Authority
Water
Fund(2)
Sewer
Fund(3)
Other
Funds(4) Total
Financial Information
68 City of Milpitas
102
Item # 1.

Compliance ........................... 363,910 0 245,963 191,879 10,000 811,754 Facilities Maintenance ........ 2,789,838 0 0 0 0 2,789,838 Fleet Maintenance ............... 0 0 0 0 2,071,181 2,071,181 Park Maintenance ............... 1,265,629 0 0 0 477,220 1,742,849 Public Works
Administration ...................... 799,144 0 898,693 1,625,083 349,143 3,672,063 Solid Waste Services .......... 64,000 0 0 0 784,393 848,393 Street Maintenance ............. 1,881,525 0 0 0 452,634 2,334,159 Trees & Landscape Mnt .... 1,484,965 0 0 0 1,171,987 2,656,952 Utility Engineering ............... 0 0 846,416 480,514 0 1,326,930 Utility Maintenance .............. 1,018,153 0 2,381,145 1,583,789 7,500 4,990,587 Aquatics ................................ 408,340 0 0 0 0 408,340 General Classes .................. 378,712 0 0 0 0 378,712 Marketing .............................. 258,311 0 0 0 0 258,311 Performing Arts .................... 79,900 0 0 0 0 79,900 Recreation Administration .. 1,811,100 0 0 0 15,466 1,826,566 Senior Services .................... 690,909 0 0 0 0 690,909 Social Services .................... 172,288 0 0 0 0 172,288 Special Events ..................... 429,395 0 0 0 0 429,395 Sports & Fitness ................. 576,099 0 0 0 0 576,099 Youth Programs ................... 1,044,928 0 0 0 0 1,044,928 1432 S. Main Street
Properties ............................. 0 33,500 0 0 0 33,500 1452 S. Main Street
Properties ............................. 64,000 0 0 0 0 64,000 Debt Service ......................... 1,196,800 0 1,047,050 2,431,275 0 4,675,125 Equipment to be
Depreciated .......................... 0 0 0 0 690,947 690,947 Non-Departmental ............... 6,555,021 57,912 23,073,631 8,006,492 270,664 37,963,720 Capital Improvement
Projects ................................. 0 0 1,515,000 6,947,000 15,464,000 23,926,000 Transfers Out* ...................... 341,866 0 2,949,393 1,706,196 5,945,479 10,942,934 TOTAL $ 117,726,970 $ 544,612 $ 34,077,513 $ 23,683,533 $ 31,642,543 $ 207,675,172 * Interfund Transfers Out are excluded from this schedule Function General
Fund(1)
Housing
Authority
Water
Fund(2)
Sewer
Fund(3)
Other
Funds(4) Total
(1) General Fund Fund, Abandon Vehicle Abatement Fund, 1452 S. Main St Fund and administration funds of the former Redevelopment Agency.
(2) Water Fund includes Water Maintenance & Operations Fund, 2019 Water Bonds Fund, Water CIP Fund, Water Line Extension Fund, and Water Infrastructure Replacement Fund.
(3) Sewer Fund includes Sewer Maintenance & Operations Fund, 2019 Wastewater Bonds Fund, Sewer Fund CIP, Treatment Plant Construction Fund and Sewer Infrastructure replacement Fund. (4) Other Funds include Community Benefit Fund, Community Facility District Funds, Community Planning Fee Fund, Gas Tax Fund, Equipment Replacement Fund, Housing and Community Development Fund, Information Technology Replacement Fund, Law Enforcement Grant Funds, Light & Landscape Maintenance District Funds, Measure B Fund, Permit Automation Fund, Public Art Fund, Solid Waste Services Fund, Street Improvement Fund, Park Improvement Funds, General Government Capital Improvement Fund, Storm Drain Capital Improvement Fund, and Transit Area Impact Fee Fund.

Financial Information
City of Milpitas 69
103
Item # 1.

Internal Cost Allocation

DIRECT COST
INDIRECT COSTS Police Fire Building Safety
& Housing Planning
Legislation & Policy ............................................... $34,097 $35,721 $10,554 $89,302 General Administration 0 0
City Manager ..................................................... 520,523 490,757 311,016 167,537 City Clerk ............................................................ 64,341 51,559 12,138 36,484 City Attorney ...................................................... 445,435 284,001 80,216 148,745 Human Resources ............................................ 667,651 429,204 135,120 41,066 Finance .................................................................... 1,073,042 774,595 178,419 56,793 Information Technology ......................................... 1,435,964 923,120 290,612 88,323 General Liability, Uncollectable
and Audit Fees ....................................................... 322,186 238,226 50,989 16,439 Unanticipated Expenditures Reserve ................. 376,597 278,457 59,600 19,215 Facilities Maintenance .......................................... 614,352 434,536 40,692 49,757 Utilities ..................................................................... 650,545 460,135 43,089 52,688 Building Occupancy ............................................... 413,796 292,681 27,408 33,514 TOTAL INDIRECT COSTS ................................... 6,612,714 4,689,254 1,238,676 799,505 TOTAL DIRECT COSTS ....................................... 37,857,985 28,227,019 5,979,662 1,927,812 TOTAL COSTS ....................................................... $44,470,699 $32,916,272 $7,218,337 $2,727,317 INDIRECT COST RATE ....................................... 0.175% 0.166% 0.207% 0.415% Financial Information
70 City of Milpitas
104
Item # 1.

PROGRAMS
Public Works Engineering Recreation Water Sewer Solid Waste TOTAL $12,989 $241,114 $83,619 $36,532 $11,366 $2,435 $549,474 0 0 0 0 0 0
105,735 262,333 227,952 638,173 285,875 25,417 2,847,883 6,013 96,830 48,123 52,672 21,376 2,535 429,534
25,692 56,310 149,771 64,569 55,416 11,430 1,011,838 16,824 121,873 171,470 118,625 77,204 15,896 1,771,871 23,484 127,888 330,463 697,697 314,046 32,167 3,527,538 36,184 262,120 368,792 255,134 166,048 34,190 3,484,318 6,814 33,868 102,880 115,611 66,721 10,099 1,608,498 7,965 39,588 120,255 66,688 56,419 11,805 1,017,711 241,410 75,594 1,001,140 235,219 142,874 4,450 2,646,305 255,632 80,047 1,060,119 249,076 151,291 4,713 3,150,552 162,601 50,916 674,316 158,431 96,233 2,998 1,912,892 901,196 1,447,420 4,337,407 2,687,394 1,444,197 157,997 26,690,360 7,060,697 3,971,865 5,811,233 34,364,337 16,494,361 1,322,952 143,017,923 $7,961,894 $5,419,287 $10,148,639 $37,051,730 $17,938,557 $1,480,949 $167,333,681

12.8 % 36.4 % 74.6 % 7.8 % 8.8 % 11.9 % 17 %
Financial Information
City of Milpitas 71
105
Item # 1.

Operating Transfers Statement
From the General Fund To the Information Technology Replacement Fund for:

IT Equipment Replacement 300,000
sub-total 300,000
From the General Fund To the LLMD 95-1 Fund for:

General Benefit Contribution 21,360
sub-total 21,360
From the General Fund To the LLMD 98-1 Fund for:

General Benefit Contribution 20,506
sub-total 20,506
From the Public Art Fund To the General Government CIP for:

Public Art Project (3489) 80,000
sub-total 80,000
From the Community
Planning Fund
To the General Government CIP for:

Comprehensive Zoning Ordinance Update (3460) 200,000
sub-total 200,000
From the Gas Tax Fund To the General Government CIP for:

Annual Sidewalk, Curb & Gutter Repair (3426) 220,000
Annual Street Light, Signal, and Signage (3440) 375,000 sub-total 595,000
From the Gas Tax Fund To the Street CIP for:

Street Resurfacing Project 2022-23 (4304) 378,026
sub-total 378,026
From the SB1 RMRA To the Street CIP for:

Street Resurfacing Project 2022-23 (4304) 1,444,414
sub-total 1,444,414
From the 98-1 Light &
Landscape Maint D
To the General Government CIP for:

Sinclair LLMD Improvements 98-1 (3411) 11,000
sub-total 11,000
Note: *Interfund Transfers, within the same fund group, are not included in the Budget Summary.

Origin and Purpose of Transfer Transfer
Distribution
Financial Information
72 City of Milpitas
106
Item # 1.

From the 2008 Community Facility
Dist
To the General Fund for:

Operating Cost Reimbursement 2,879,042
sub-total 2,879,042
From the 2005 Community Facility
Dist
To the General Government CIP for:

On-Call Parks and Landscaping Services (3463) 50,000
sub-total 50,000
From the Solid Waste Services
Fund
To the General Fund for:

Operating Cost Reimbursement 157,997
sub-total 157,997
From Street Improvement Fund To the Street CIP Fund for:

Soundwall and Barrier Repair and Renovation Program (4267) 300,000 sub-total 300,000
From the Vehicle Registration Fee
Fund *
To the Street CIP Fund for:

Street Resurfacing Project 2022-23 (4304) 500,000
sub-total 500,000
From the Park Improvement Fund * To the General Government CIP for:

Cardoza Park Softball Fields Improvement (3491) 500,000 sub-total 500,000
From the Park Improvement Fund * To the Subsidiary CIP Fund for:

Minor Sports Courts Rehabilitation (5113) 155,000
sub-total 155,000
From the Midtown Park Fund * To the Subsidiary CIP Fund for:

Sports Fields Turf Rehab. Program (5108) 225,000
Rose Garden with Children's Memorial (3504) 150,000
Minor Sports Courts Rehabilitation (5113) 200,000
sub-total 575,000
From the General Government * To the Storm Drain CIP
City Parking Lot Rehabilitation Program (3716) 200,000 sub-total 200,000
Note: *Interfund Transfers, within the same fund group, are not included in the Budget Summary.

Origin and Purpose of Transfer Transfer
Distribution
Financial Information
City of Milpitas 73
107
Item # 1.

From the General Government * To the General Government CIP for:

Fire Station Improvements (3403) 200,000
City Building Improvements (3406) 800,000
Annual Tree Replacement Program (3438) 125,000
Street Landscape Irrigation Repair (3449) 360,000
On-Call Facilities Maintenance & Repair Services (3462) 330,000 On-Call Parks and Landscaping Services (3463) 150,000
Fire Training/OES Facility Portable (3465) 550,000
Capital Improvement Program Administration (3490) 252,000 Public Safety Mobile Computer Terminals (3497) 360,000 HVAC Repairs and Upgrades (3499) 620,000
Railroad Quiet Zone Feasibility Study (3485) 300,000
Landmark Policy - Historic Resource Master Plan Update and Marker Program (3503) 200,000
Rose Garden with Children's Memorial (3504) 150,000
sub-total 4,397,000
From the Transit Area Impact Fee
Fund *
To the Subsidiary CIP Fund for:

Land/Right-of-Way Value Determination (2010) 9,000
S. Milpitas Blvd. Vehicle Bridge at Penitencia (2016) 700,000 Montague Ped. Overcrossing at Penitencia (2018) 2,490,000 (Rmb) Metro Recycled Water Distribution (2019) 300,000 sub-total 3,499,000
From the Transit Area Impact Fee
Fund *
To the General Government CIP for:

Capital Improvement Program Administration (3490) 144,000 sub-total 144,000
From the Water M&O Fund To the General Fund for:

Operating Cost Reimbursement 2,687,393
sub-total 2,687,393
From the Water Infrastructure
Replacement
To the General Government CIP for:

Capital Improvement Program Administration (3490) 162,000 GIS Development and Data Collection (3496) 100,000
sub-total 262,000
Note: *Interfund Transfers, within the same fund group, are not included in the Budget Summary.

Origin and Purpose of Transfer Transfer
Distribution
Financial Information
74 City of Milpitas
108
Item # 1.

From the Water Infrastructure
Replacement *
To the Subsidiary CIP Fund for:

Well Upgrade Project (7076) 515,000
Hydrant Replacement Program (7110) 90,000
Reservoir Cleaning (7112) 60,000
Water Conservation Program (7126) 160,000
Minor Water Projects (7133) 390,000
On-Call Water Maintenance & Repair Services (7137) 300,000 sub-total 1,515,000
From the Sewer M & O Fund To the General Fund for:

Operating Cost Reimbursement 1,444,196
sub-total 1,444,196
From the Sewer Treatment Fund * To the Subsidiary CIP Fund for:

SJ/SC Regional Waste Water Facility (6118) 6,300,000
sub-total 6,300,000
From the Sewer Infrastructure
Replacement *
To the General Government CIP for:

GIS Development and Data Collection (3496) 100,000
Capital Improvement Program Administration (3490) 162,000 sub-total 262,000
From the Sewer Infrastructure
Replacement *
To the Subsidiary CIP Fund for:

SJ/SC Regional Waste Water Facility (6118) 330,000
Sewer Pump Station Rehab. Program (6124) 200,000
Minor Sewer Projects (6126) 50,000
On-Call Sewer Maintenance & Repair Services (6134) 67,000 sub-total 647,000
From the Permit Automation Fund To the General Government CIP for:

GIS Development and Data Collection (3496) 150,000
sub-total 150,000
TOTAL TRANSFERS $29,674,934
Note: *Interfund Transfers, within the same fund group, are not included in the Budget Summary.

Origin and Purpose of Transfer Transfer
Distribution
Financial Information
City of Milpitas 75
109
Item # 1.

ARPA Informational Schedule
On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA), a $1.9 trillion stimulus package, to counteract the economic impacts of the pandemic. The City’s ARPA allocation of $16,736,815 is available in two tranches; the first half was received in June 1, 2021, and the second half will be provided in June 2022.

The U.S. Treasury issued the Interim Final Rule (IFR) on May 10, 2021 and the Final Rule on January 6, 2022, which went into effect on April 1, 2022. Funds need to be either expended or encumbered by December 31, 2024, with all funds to be expended by December 31, 2026.

Council began ARPA discussions in March 2021 and adopted guidelines, investments plans and project appropriations by August 2021. Specifically, in June 2021, Council approved the ARPA Investment Framework including the Fiscal Guidelines and Five Investment Areas. Fiscal Guidelines include the following:

1. Identify and promote other ARPA or State funding sources to the extent possible before dedicating local ARPA funds.

2. Use one-time ARPA funds for one-time expenditures such as investment in infrastructure or technology with minimum ongoing operating costs.

3. Avoid ongoing General Fund commitments with additional programs and positions.

4. Avoid creating a structural budget deficit if restoring any reduced services.

5. Leverage regional agencies, non-profit partners, and existing programs to maximize efficiency in delivering programs and services.

On August 9, Council approved funding for 25 programs (and later expanded) in the ARPA Investment Plan and delegated authority to the City Manager to proceed with appropriation actions and contract approvals, up to the approved amount for each program approved by Council, once compliance with ARPA procurement, contracting, and reporting requirements are confirmed. This allows the funding to go to residents and businesses significantly impacted by the pandemic, in an efficient and expeditious manner.

Funding for the Five Investment areas of Community Services, Economic Vitality, Infrastructure, Public Safety, and Technology is as follows:

Milpitas ARPA Funding Investments
Technology improvements
$2,110,000

12.6%
ARPA Administrative Costs
$350,000

2.1%
Community Services
$2,550,000

15.2%
Economic Vitality
$4,145,000

24.8%
Infrastructure
$5,061,815

30.2%
Public Safety
$2,520,000

15.1%
Financial Information
76 City of Milpitas
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Item # 1.

Table 1: Summary of ARPA Investment Plan – as of April 13, 2022 Community Services
1 Rent and mortgage relief $1,100,000
2 Social services – mental health services, services for domestic violence and abuse victims and LGBTQ plus community $500,000 3 Financial assistance to low and moderate income residents for utility payments and childcare costs $575,000
4a Beautify Milpitas program $100,000
4b Weed Abatement $90,000
5 Pilot curbside trash pickup program $85,000
6 Homeless outreach and assessment $100,000
Subtotal $2,550,000
Economic Vitality
7 Small Business Assistance Grant Program $1,500,000
8 Hotel Assistance Grant Program $200,000
9 Accessory Dwelling Unit program $990,000
10 Storefront Improvement Grant Program $365,000
11 Community events $125,000
12 Financial assistance to the Chamber of Commerce $200,000 13 Workforce Development Program $300,000
14 Limited term Economic Development Specialist position $330,000 15 Business Improvement District $75,000
16 Sustainable Neighborhood Program $60,000
Subtotal $4,145,000
No. Program/Activity Approved
Appropriation
Financial Information
City of Milpitas 77
111
Item # 1.

Infrastructure
17 Parks Rehabilitation $4,386,815
18 Public Safety Facilities’ Rehabilitation $250,000
19 Mobile Emergency Operations Center (MEOC) $425,000
Subtotal $5,061,815
Public Safety
20 Public Safety staffing ( 2 Police and 4 Fire positions for one year) $1,200,000
21 Fire Pumper Truck $920,000
22 Emergency Management Program Assessment Study $200,000 23 Catalytic Converter Public Safety Initiative $200,000 Subtotal $2,520,000
Technology
24 Human Resources Information System $1,100,000
25 Financial Management System $100,000
26 Cybersecurity programs and training $300,000
27 Technology infrastructure $610,000
Subtotal $2,110,000
Recommendation for Unassigned Allocation
28 ARPA Funds Administration $350,000
Subtotal $350,000
Grand Total $16,736,815
No. Program/Activity Approved
Appropriation
Financial Information
78 City of Milpitas
112
Item # 1.

TABLE 2: ARPA-funded Positions – as of April 13, 2022
Public Safety Police - Police Officers 2 1 year
Public Safety Fire - Firefighter/Paramedics 4 1 year
Economic Vitality Economic Development – Special Project Associate 1 Limited Term Economic Vitality Recreation Services – Events Coordinator 1 1 year Economic Vitality Recreation Services – Youth Recreation Program Temporary Staffing — Limited Term
Economic Vitality Economic Development – Workforce Development - Recreation Youth Program Temporary Staffing — Limited Term Community Services Public Works - Maintenance Worker 2 Seasonal/Part-time Technology Improvements Information Technology Staff 1 2 years Administration Finance - Senior Buyer (Reclassification) 1 Limited Term Investment Area Position/Title FTE Duration
ARPA Programs

1. Rent and mortgage relief
This Milpitas ARPA allocation will expand eligibility for the Milpitas Rent Relief Program and create a Milpitas Mortgage Relief program.

2. Social services – mental health, domestic violence, LGBTQ plus This Milpitas ARPA allocation will provide a variety of social services such as mental health services and services to the LGBTQ plus community and at-risk youth as well as victims of domestic violence and abuse.

The City would partner with non-profits that are already serving in these areas.

3. Low income assistance – utility bills, childcare
Financial assistance to low and moderate income residents for utility payments and childcare costs.

4. Beautify Milpitas
The City will provide staffing support and materials for one clean-up day every month and a National Clean- Up Day once a year.

5. Curbside trash pick-up pilot program
Under the current Bulky Item/On Call Clean-up Program, single-family residential customers are entitled to four bulky item/clean ups per a rolling 12-month period. Residents can either dispose of their unwanted items into two 1.5-cubic yard bags or instead of using the bags, one (1) large/bulky item may be set out for collection. Under the pilot program, residents would be able to set out up to three (3) large/bulky items for collection.

6. Homeless Outreach and Assessment
This Milpitas ARPA allocation will continue services with Santa Clara County Office of Supportive Housing and the County’s Homeless Engagement and Access Team to provide direct outreach, assessment, and case management services to the City’s unhoused residents.

Financial Information
City of Milpitas 79
113
Item # 1.

7. Small Business Assistance Grant Program
The City of Milpitas launched the Milpitas Small Business Assistance Grant Program to support local businesses that have been negatively impacted by the COVID-19 pandemic. The grant program is funded by the American Rescue Plan Act (ARPA) to assist Milpitas small businesses with resiliency and recovery efforts. The grant program will provide $5,000 grants and free technical assistance to approximately 285 Milpitas small businesses.

8. Hotel Assistance Grant Program
Milpitas is home to twenty hotels which serve the Silicon Valley region. The local lodging industry plays a significant multiplier role in the local economy. During the pandemic, hotels have suffered tremendous loss in revenues and jobs. The Department of Treasury has determined that aid to impacted industries such as tourism, travel, and hospitality take place to restore these industries to pre-pandemic levels. The City of Milpitas is providing $10,000 grants to each local hotel to assist with COVID-19 business impacts.

9. Accessory Dwelling Unit (ADU) program
The Milpitas ARPA allocation will provide payment of permit fees to incentivize the building of new ADUs and encourage the legalization of unpermitted ADUs through the ADU Incentive Program and the Safe ADU Legalization Program. These ADU programs can provide housing options, foster economic growth through increased construction activity, and increase property value.

10. Storefront Improvement Grant Program
The Storefront Improvement Grant Program is meant to spur Main Street revitalization and economic vitality. The grant program will include five Level 1 Grants of up to $15,000 each, six Level 2 Grants of up to $25,000 each and design services estimated at $75,000 for a total grant program amount of $300,000.

11. Community events
Community events over the next two years and funding could be used to partner with external entities to host events such as Cultural Celebrations, Art Walk and/or 5k Run.

12. Milpitas Chamber of Commerce
The Milpitas Chamber of Commerce will receive ARPA funding for staff to assist with supporting local businesses through the following events and business assistance activities: Crab Feed, Art and Wine Festival, Business Workshops, and Job Fair(s).

13. Workforce Development Program
The Workforce Development Program includes funding for Milpitas Youth Force ($40,000) to support low- income youth and develop a local workforce pipeline, Evergreen Valley College for an Amazon Web Services Cloud Practitioner Program ($50,000), First 5 Santa Clara County for a Pilot Early Childhood Education Teacher Apprenticeship program ($40,000), Rising Sun Center for Opportunity Climate Careers will develop a program addressing climate change by employing local youth to provide energy efficiency services ($10,000), and Build It Green to implement a Certified Green Building Professional training program ($10,000).

14. Limited term Economic Development Specialist position In order to assist with the ARPA Economic Vitality Investment Framework, the City Council approved funding for a two-year limited term Economic Development Specialist position for the Office of Economic Development ($330,000).

15. Business Improvement District
ARPA funding will be used for a Business Improvement District (BID) feasibility analysis and technical support for property owners and business owners on North and South Main Street to assist with the formation of a BID and an Engineer's Report. A feasibility and analysis study will cost approximately $75,000 in one-time funding. A business improvement district (BID) is a geographic area in which businesses or property owners opt to pay a self-assessed levy to fund projects and services within the district's boundaries. BIDs are employed as an economic development tool to fund services such as cleaning streets, providing security, making capital improvements, construction of pedestrian and streetscape enhancements, various public infrastructure improvements, restoring and re-establishing Financial Information
80 City of Milpitas
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Item # 1.
historic districts, and marketing the area. The establishment of BID is aligned with the City Council’s goal of Main Street Revitalization and the City’s Economic Development Strategy.

16. Sustainable Neighbor Program
The purpose of this program is to support Milpitas in achieving its CAP (Climate Action Plan) goals by demonstrating how the community can utilize the many city-promoted and city-supported sustainability and resiliency programs to reduce GHG emissions; developing and instilling long term skills and behaviors that can be shared with neighbors, family, friends and future generations to continue a low environmental impact community; promoting “how-to” steps that work; and proving Milpitas' resilience to global trends, like climate change and pandemics.

17. Parks Rehabilitation – Engineering & Public Works
This provides ARPA funding for needed repairs and improvements to 20 of the City’s 36 parks. The implementation of these repairs and improvements will address health and safety repairs and improve the condition of parks noted as in critical and poor condition.

18. Public Safety Facilities' Rehabilitation
This project would complete a safety risk assessment for Fire Station 1 to identify weak areas in safety, to determine and implement the proper technology and infrastructure to mitigate the identified risks.

19. Mobile Emergency Operation Center (MEOC)
This project provides partial funding for the purchase of a Mobile Emergency Operations Center (MEOC) to be used by the Police and Fire Department during extended incidents and field deployments. This vehicle provides a safe operational environment for staff to plan and coordinate resources during a major incident.

The MEOC will also serve as a backup Public Safety Answering Point (PSAP) allowing the City to provide continuous and uninterrupted service to the community in the event the primary system fails.

20. Public Safety Staffing (Police and Fire)
This project supports the funding of these two positions with ARPA funds, in order for the Police Department to restore pre-pandemic funded staffing levels. This project will also fund four Firefighter-Paramedic positions which will enable the Fire Department to deploy an ambulance during FY 2021-22 and FY 2022-23.

21. Fire equipment (1 fire pumper)
The addition of this new fire pumper will substantially improve the reliability of the reserve fleet as well as allowing the reduction of the reserve fleet from three to two reserve fire pumpers. By adding a new pumper to the fleet in front line status, the most utilized current pumper will be placed in the reserve fleet thereby extending the useful life of the existing front-line apparatus.

22. Implementation of Emergency Mgt Plan (EMP)
This funding will partially fund the high priority Emergency Management Program (EMP) Assessment Study.

23. Catalytic Converter
This provides funding for various catalytic converter program(s) to address this public safety challenge.

24. HR Information System
This funding enables the City to implement a new HR Information System (HRIS). Currently, the City relies upon a 24-year old Financial Management System, that has a HRIS component. This new system will address many of the current system deficiencies.

25. Financial Management System evaluation
This ARPA funding will provide a financial management system evaluation and operational assessment, as the City plants to replace its 26 year old legacy system.

Financial Information
City of Milpitas 81
115
Item # 1.

26. Cybersecurity and training
This ARPA funding will assist the City in cyber threats by funding possibly 1) hardware and software protection systems and/or 2) end-user security training.

27. Technology improvements
This project supports general technology improvements. This includes, but not limited to 1) addressing outdated and vulnerable systems, 2) improving security, 3) implementing additional infrastructure necessary to better support the City’s remote workforce, 4) supporting hybrid public meeting requirements.

28. Procurement, monitoring, compliance
The U.S. ARPA program is a Federal program wherein the U.S. Treasury imposes comprehensive, complex procurement, monitoring and compliance requirements. These mandates endeavor to ensure best practices in procurement, fiscal oversight and achieving the primary desired program outcome of helping the United States rebuild from the COVID-19 pandemic. The City set aside 2% of the total Milpitas ARPA funding to assist with procurement, monitoring and compliance.

Financial Information
82 City of Milpitas
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Item # 1.

City Council
Mayor: Rich Tran
Mission Statement Description
The City Council serves as the informed,
legislative governing body of the City on all
issues, provides guidance in assessing the
needs of the community and policy direction
for the development of programs and provision
of services to the Milpitas community.

The City has a Council/Manager
form of government. The Council
sets policy and approves the
budget, contracts, and programs.

Budget Narrative and Summary
City of Milpitas • City Council 83
117
Item # 1.

Services
• Serves as governing body of the City.
• Provides legislative direction to the City.
• Promulgates policies for provision of services and
direction for the City.
• Enacts ordinances and resolutions necessary for
governing the affairs of the City.
• Adopts the Annual Operating Budget and Five-
Year Capital Improvement Program.
• Serves as City Representatives at public events
and functions.

Council Priority Areas
Community Wellness
and Open Space
Economic
Development and
Job Growth
Environment
Governance and
Administration
Neighborhoods
and Housing
Public Safety
Transportation
and Transit
Budget Narrative and Summary
84 City of Milpitas • City Council
118
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Accomplishments

1. Mask Mandate (first City in Santa Clara
County) P P P

2. Milpitas COVID-19 Testing sites P P P

3. Authorized Community Assistance during the
Pandemic (e.g.: food distribution, rent relief
program, small business grants) P P P P

4. General Plan Adoption P P P P P P P

5. FY2021-22 Budget Adoption P P P P P P P
Initiatives

1. Supporting implementation of a Milpitas
Mobile Vaccination Program P P P

2. Assisting Small Businesses P P P

3. Investing American Rescue Plan Act funds
strategically P P P P P P P

4. Adopting long-term infrastructure and utility
strategies P P P P P P P

5. Enhancing Transportation and Transit
Connectivity Options P P P P P P

6. Continue to support policies and programs
that promote equity, inclusion and diversity P P P P P P P Budget Narrative and Summary
City of Milpitas • City Council 85
119
Item # 1.

Budget Summary

PERSONNEL SERVICES
4111 Permanent Salaries $60,199 $57,784 $67,844 $58,688 ($9,156) (13.5) % 4112 Temporary Salaries 10,360 6,655 144,728 144,722 (6) 0.0 % 4121 Allowances 37,883 37,581 38,700 38,700 0 0.0 %
4131 PERS 14,966 14,314 13,762 15,095 1,333 9.7 %
4132 Group Insurance 83,639 83,292 77,042 83,220 6,178 8.0 % 4133 Medicare 1,456 1,413 2,269 2,136 (133) (5.9) %
4135 Worker's Compensation 702 2,395 2,438 2,392 (46) (1.9) % 4139 PARS 185 106 2,171 2,171 0 0.0 %
4146 Short Term Disability 0 0 252 1,200 948 376.2 %
4161 Retiree Medical Reserve 6,888 265 273 399 126 46.2 % sub-total 218,958 203,805 349,479 348,723 (756) (0.2) %

SUPPLIES AND CONTRACTUAL SERVICES
4200 Community Promotion,Grant/
Loan 14,354 8,071 37,500 39,500 2,000 5.3 %
4220 Supplies 1,127 222 11,000 11,000 0 0.0 %
4230 Services 18,161 1,286 31,600 35,000 3,400 10.8 %
4500 Training, Travel, &
Memberships 79,933 66,002 107,895 111,500 3,605 3.3 %
4520 Commissions & Boards 763 750 12,000 12,000 0 0.0 % sub-total 114,338 76,331 199,995 209,000 9,005 4.5 %
TOTAL $333,296 $280,136 $549,474 $557,729 $8,249 1.5 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Staffing*
City Council 4.00 4.00 4.00 4.00 0.00
Mayor 1.00 1.00 1.00 1.00 0.00
Total Positions 5.00 5.00 5.00 5.00 0.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
*Funding for 5 interns (2.5 Temporary FTEs) included in the City Council budget.

Budget Narrative and Summary
86 City of Milpitas • City Council
120
Item # 1.

Expenditures by Category
Personnel Services
$348,723

62.5%
Supplies and Contractual Services
$209,000

37.5%
Budget Reconciliation
PRIOR YEAR BUDGET 5.00 $549,474 $0 $549,474
Adjustments to Costs of Ongoing Activities
Salary and Benefits (1,750) (1,750)
Non-Personnel Expenditure Alignment to
Historical Trend 10,005 10,005
Adjustments to Costs of Ongoing Activities 0 8,255 0 8,255 Total FY 2022-23 Budget 5.00 $557,729 $0 $557,729
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures

Budget Narrative and Summary
City of Milpitas • City Council 87
121
Item # 1.

Budget Narrative and Summary
88 City of Milpitas • City Council
122
Item # 1.

City Manager
City Manager: Steven G. McHarris
Mission Statement Description
The City Manager's Office is responsible
for implementing and supporting City
Council direction, managing day-to-day
operations of the City, and providing
leadership and professional
management to the organization.

This function provides the administration of
City government in an efficient and effective
manner according to the general policy
guidelines of the City Council and
recommends strategies and solutions to
issues for Council consideration.

Budget Narrative and Summary
City of Milpitas • City Manager 89
123
Item # 1.

Services
• Provides professional expertise and support to
the City Council in formulation, interpretation and
application of public policy to achieve community
goals and objectives.
• Implements the City Council approved policies.
• Ensures the delivery of services to the Milpitas
community in an effective and efficient manner.
• Administers the operations of City government.
• Advances organizational vision, determines
organizational accountability, goals, and
organizational capacity.
• Provides strong leadership and ensures timely
dissemination of critical information to the
community during times of emergency.
• Submits for adoption a balanced budget that
identifies all the anticipated revenues and
expenditures.
• Communicates with the City’s diverse community
about services, programs, and policies.
• Responds to inquiries from Milpitas residents and
businesses, external agencies, customers, and
other interested parties.
• Follows legislative activities of federal, state,
regional and local political bodies and keeps
Council apprised of the potential impact to
the City.

Budget Narrative and Summary
90 City of Milpitas • City Manager
124
Item # 1.

City Manager
Budget Narrative and Summary
City of Milpitas • City Manager 91
125
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Accomplishments

1. EOC Lead and Management during
COVID-19 P P P P

2. Proposed a Balanced FY2022-23 Budget P P P P P P P

3. Completed Successful Appointments of Two
Executive Positions P

4. Vaccination and Testing Sites Partnership P P P

5. Adoption and Implementation of Community
Identification and Branding Strategy P P P

6. Adoption of Climate Action Plan P P P P P P P

7. Adoption of Water, Sewer, Storm Master Plan
and Financial Utility Master Plan P P P P P P

8. Adoption and Implementation of $16.7M
ARPA Investment Plan P P P P P P

9. Led Prioritization and Implementation of over
100 individual Council Requests P P P P P P P

10. Adoption of City Council Procedures and
Protocols Handbook P
Budget Narrative and Summary
92 City of Milpitas • City Manager
126
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Initiatives

1. Lead Initiatives to Prevent Homelessness
and increase Affordable Housing Options P P P P P

2. Continue Implementation of ARPA
Investment Plan P P P P P P P

3. Adopt and Implement Trails, Bikeway and
Pedestrian Master Plan P P P P

4. Adopt and Implement Milpitas Metro Specific
Plan P P P P P P

5. Develop and Implement Strategic
Communications Plan P P

6. Develop and Implement Street Landscape
and Parks Maintenance Plan P P P P

7. Implement Milpitas OnDemand Micro-Transit
Pilot Program P P P

8. Implement Emergency Management
Program P
Budget Narrative and Summary
City of Milpitas • City Manager 93
127
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goal
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Residents that are satisfied or very satisfied
with the quality of City services
76% 79% 75% 83% 83%
Residents contacting the City who say they
are satisfied or very satisfied with the
timeliness, courtesy and competency of City
employees
76% 77% 80% 78% 78%
Employees who feel their work is valued by
the City *
67% 67% 70% 70% 70%
Employees who feel safe at work
75% 85% 90% 90% 90%
Employees receiving timely annual
performance appraisals
N/A N/A 90% 93% 95%
ACTIVITY AND WORKLOAD DATA Strategic
Goal
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
City Council agenda items
494 503 450 450 450
Information Memos published1
38 64 26 45 50
City Manager Weekly Reports2
43 15 26 19 19
Press Releases3
33 22 20 13 15
Communications to all employees4
(emails, newsletters, town hall meetings)
87 74 30 57 60
* Employee survey is only conducted every two years
1 - 26 out of 64 info memos are related to COVID-19 in FY21, 5 of these 45 memos are related to COVID-19 in FY22 2 - No weekly reports were published during the peak of the COVID-19 pandemic in FY21 3 - 3 items are COVID-19 related
4 - 30 items are related to COVID-19 in FY21, 5 of the 57 communications are related to COVID-19 in FY22 Budget Narrative and Summary
94 City of Milpitas • City Manager
128
Item # 1.

Budget Summary

PERSONNEL SERVICES
4111 Permanent Salaries $896,147 $1,113,859 $1,204,273 $1,251,444 $47,171 3.9 % 4112 Temporary Salaries 203,635 184,318 17,362 41,977 24,615 141.8 % 4113 Overtime 60,588 22,269 0 0 0 0.0 %
4121 Allowances 16,556 7,222 19,532 26,384 6,852 35.1 % 4124 Leave Cashout 60,256 96,381 0 0 0 0.0 %
4131 PERS 381,793 421,897 385,227 378,299 (6,928) (1.8) % 4132 Group Insurance 106,620 135,496 88,709 94,509 5,800 6.5 % 4133 Medicare 17,742 20,831 18,266 19,049 783 4.3 %
4135 Worker's Compensation (3,676) 372 6,118 6,422 304 5.0 % 4138 Deferred Comp-Employer 6,774 38,565 38,516 39,387 871 2.3 % 4139 PARS 1,750 283 539 539 0 0.0 %
4146 Short Term Disability 0 0 470 1,649 1,179 250.9 % 4161 Retiree Medical Reserve 55,704 8,720 8,149 8,672 523 6.4 % sub-total 1,803,889 2,050,213 1,787,161 1,869,180 82,019 4.6 %

SUPPLIES AND CONTRACTUAL SERVICES
4200 Community Promotion,Grant/
Loan 15,009 0 25,000 26,550 1,550 6.2 %
4210 Department Allocations 0 0 0 0 0 0.0 %
4220 Supplies 5,704 8,172 8,200 8,800 600 7.3 %
4230 Services 141,760 144,177 250,000 250,000 0 0.0 %
4500 Training, Travel, &
Memberships 25,686 10,433 27,000 30,000 3,000 11.1 %
sub-total 188,159 162,782 310,200 315,350 5,150 1.7 %
TOTAL $1,992,048 $2,212,995 $2,097,361 $2,184,532 $87,169 4.2 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Budget Narrative and Summary
City of Milpitas • City Manager 95
129
Item # 1.

Staffing
Assistant City Manager 1.00 1.00 1.00 1.00 0.00
City Manager 1.00 1.00 1.00 1.00 0.00
Deputy City Manager 1.00 1.00 1.00 1.00 0.00
Executive Assistant 1.00 0.00 0.00 0.00 0.00
Office Specialist* 1.00 1.00 0.00 0.00 0.00
Office Assistant II* 0.00 0.00 0.50 0.50 0.00
Public Information Officer 1.00 1.00 1.00 1.00 0.00
Senior Executive Assistant 0.00 1.00 1.00 1.00 0.00
Total Positions 6.00 6.00 5.50 5.50 0.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2022
Change
*1.0 Office Specialist is defunded, 0.5 Office Assistant II from City Clerk is transferred over for administrative support.

Expenditures by Category
Personnel Services
$1,869,180

85.6%
Supplies and Contractual Services
$315,350

14.4%
Budget Narrative and Summary
96 City of Milpitas • City Manager
130
Item # 1.

Budget Reconciliation
PRIOR YEAR BUDGET 5.50 $2,062,856 $34,505 $2,097,361
Adjustments to Costs of Ongoing Activities
Salary and Benefits 47,697 660 48,357
Non-Personnel Expenditure Alignment to
Historical Trend 6,550 6,550
Adjustments to Costs of Ongoing Activities 0.00 54,247 660 54,907 Total FY2022-23 Base Budget 5.50 2,117,103 35,165 2,152,268 Service Level Changes
Part-time Staff Enhancement 32,264 32,264
Total Service Level Changes 0.00 32,264 0 32,264
Total FY 2022-23 Budget 5.50 $2,149,367 $35,165 $2,184,532 Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • City Manager 97
131
Item # 1.

Service Level Changes
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures

1. Part-time Staff Enhancement $32,264 $0 $32,264
This action funds 0.5 Staff Assistant to support City Manager's Office (CMO), Mayor and Councilmembers. The Staff Assistant will provide office coverage and full time assistance to the entire City Manager's Office staff with various internal and external projects/initiatives to meet the Council priorities.

Performance Results

Temporary staff will support the CMO administratively and provide coverage for any gaps created by the defunding of the Office Specialist.

Impact if funding is not approved
If this action is not funded, CMO will not receive adequate administrative support and that can negatively impact project timeline, delaying alignment with Council priorities.

Total Service Level Changes $32,264 $0 $32,264

Budget Narrative and Summary
98 City of Milpitas • City Manager
132
Item # 1.

City Clerk
City Clerk: Wendy Wood
Mission Statement Description
The City Clerk holds several statutory responsibilities, including administration of municipal elections and
records management. City Clerk provides timely agenda
material for the City Council to take action at bi-monthly regular meetings.

City Clerk ensures compliance with relevant laws aimed
at safeguarding democracy and public transparency
including the Ralph M. Brown Act, California Elections
Code, the Political Reform Act and Public Records Act.

The Milpitas City Clerk serves as the legislative
administrator, elections official, and records
manager of the City as well as the Clerk of City
Council and Secretary to the Milpitas Public
Financing Authority, Milpitas Municipal
Financing Authority and Housing Authority.

Budget Narrative and Summary
City of Milpitas • City Clerk 99
133
Item # 1.

Services
• Prepares, edits, and publishes City Council
agenda and meeting minutes for all regular and
special City Council meetings.
• Ensures municipal records are readily available
and accessible to all and serve as main point of
contact for residents, City officials and staff, and
other governments.
• Complies with the Ralph M. Brown Act, the
Public Records Act, and the City's Open
Government Ordinance.
• Provides centralized records management,
including production and retention of all meeting
agendas and minutes of all City Council (and
related entity) meetings.
• Coordinates outreach and tracking of terms of
service and Mayor’s appointments to 12 City
Commissions.
• Maintains codification of ordinances, i.e.,
ensuring publication of Milpitas Municipal Code
by vendor Municipal Code Corporation.
• Administers municipal elections, including
candidate filing in November of even years, and
receives required campaign finance reports on
semi-annual basis.
• Receives and files annual Fair Political
Practices Commission Forms 700 / Statements
of Economic Interest for all designated
employees, Commissioners, and elected
officials.
• Responsible for requests for rental of City Hall
facilities.
• Conducts Administrative Hearings, upon
request, for Parking Citations and others
municipal code violations.

Budget Narrative and Summary
100 City of Milpitas • City Clerk
134
Item # 1.

Accomplishments

1. Prepared all City Council, Housing Authority,
and Public Financing Authority regular &
special meeting including Study Session
agendas, via use of MuniCode Meetings
software, and wrote all meeting minutes

P P P P P P P

2. Tracked Council agenda items on: Tentative
Agenda Items, Major Discussion Items,
Preliminary and Final City Council Agenda
and List of Requested Agenda Items
P

3. Responded to Calif. Public Records Act and
Milpitas Open Government Ordinance
requests for records P P P P P P P

4. Collected mandated Fair Political Practices
Commission documents from filers, including
all Statement of Economic Interests (From
700) and campaign committee reports
P

5. Managed the Commission recruitment and
appointment process for twelve
Commissions, two Task Forces, and one
Oversight Committee
P

6. Provided Notary Public service for City staff,
as needed P

7. Recruited for and hired a new Deputy City
Clerk P

8. Implemented a new Commissioner
application process P

9. Implemented an internal Public Records
Request process P

10. Updated Open Government Ordinance to
align with current City practices and State
law P
Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Budget Narrative and Summary
City of Milpitas • City Clerk 101
135
Item # 1.

Initiatives

1. Prepare all City Council, Housing Authority,
and Public Financing Authority regular and
special meeting agendas and minutes P P P P P P P

2. Track Council agenda items on: Tentative
Agenda Item Lists, Major Discussion Items (6
mos. excel), Preview List, Council referral
items (excel), Preliminary and Final City
Council Agenda and List of Requested
Agenda items
P

3. Respond to Public Records Act and Open
Govt. Ord. requests for public records. P

4. Collect mandated Fair Political Practices
Commission documents from filers, including
all annual Statements of Economic Interests
(700) and campaign committee reports
P

5. Track all Commissioner terms, maintain
directory, provide Commissioner Handbook
and training to City of Milpitas appointed
Commissioners
P

6. Continue to Provide Notary Public service for
City staff, as needed P

7. Review and revise the City’s Records
Retention Schedule P

8. Implement an automated Public Records
Request System P

9. Conduct City Commission Liaison/ Chair and
Vice Chair Training P
Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Budget Narrative and Summary
102 City of Milpitas • City Clerk
136
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
City Council preliminary agenda posted on
time, in accordance with Open Government
Ordinance, 6 days prior to meeting
100% 100% 100% 100% 100%
City Council Agendas packets prepared,
posted and delivered 5 days prior to meeting
97% 100% 100% 100% 100%
Compliance with timely filings of Fair Political
Practices Commission Form 700 Statements
of Economic Interest
92% 85% 100% 90% 100%
Comply with timely filings of fair Political
Practices Commission Forms 460/Campaign
Committee reports
81% 94% 100% 83% 100%
ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
City Council Agenda Reports (Regular
and Special)
340 465 375 335 355
City Council Meeting Minutes prepared
(# pages)
41 (207) 43 (205) 30(184) 35 (255) 37 (225)
Candidates Assisted in Municipal Election
0 11 0 0 11
Tort Claims received by City Clerk
34 34 45 38 40
Fair Political Practices Commission Forms
700 (SEI) received
161 152 200 215 200
Fair Political Practices Commission
Campaign Committee Reports filed
37 37 70 35 45
Notary Public acknowledgments (or jurats)
22 22 35 45 38
Budget Narrative and Summary
City of Milpitas • City Clerk 103
137
Item # 1.

Budget Summary

PERSONNEL SERVICES
4111 Permanent Salaries $349,318 $358,923 $340,227 $340,143 ($84) 0.0 % 4112 Temporary Salaries 0 0 0 0 0 0.0 %
4113 Overtime 143 0 0 0 0 0.0 %
4121 Allowances 6,600 3,554 6,430 6,600 170 2.6 %
4124 Leave Cashout 7,751 33,560 0 0 0 0.0 %
4131 PERS 138,415 120,851 114,571 103,031 (11,540) (10.1) % 4132 Group Insurance 61,661 62,316 57,750 65,664 7,914 13.7 % 4133 Medicare 5,334 5,704 5,027 5,028 1 0.0 %
4135 Worker's Compensation 1,671 1,828 1,658 1,701 43 2.6 % 4138 Deferred Comp-Employer 2,700 2,326 2,497 2,250 (247) (9.9) % 4139 PARS 0 0 0 0 0 0.0 %
4146 Short Term Disability 0 0 230 750 520 226.1 %
4161 Retiree Medical Reserve 16,716 2,760 2,401 2,493 92 3.8 % sub-total 590,309 591,822 530,791 527,660 (3,131) (0.6) %

SUPPLIES AND CONTRACTUAL SERVICES
4220 Supplies 1,029 355 3,000 3,000 0 0.0 %
4230 Services 28,147 14,319 30,000 30,000 0 0.0 %
4280 Elections 0 1,811 0 0 0 0.0 %
4500 Training, Travel, &
Memberships 2,173 245 7,000 7,000 0 0.0 %
sub-total 31,349 16,730 40,000 40,000 0 0.0 %
TOTAL $621,658 $608,552 $570,791 $567,660 ($3,131) (0.5) % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Staffing
City Clerk 1.00 1.00 1.00 1.00 0.00
Deputy City Clerk 1.00 1.00 1.00 1.00 0.00
Office Assistant II 1.00 1.00 0.50 0.50 0.00
Total Positions 3.00 3.00 2.50 2.50 0.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Budget Narrative and Summary
104 City of Milpitas • City Clerk
138
Item # 1.

Expenditures by Category
Personnel Services
$527,660

93.0%
Supplies and Contractual Services
$40,000

7.0%
Budget Reconciliation
PRIOR YEAR BUDGET 2.50 $570,791 $0 $570,791
Adjustments to Costs of Ongoing Activities
Salary and Benefits (3,131) (3,131)
Adjustments to Costs of Ongoing Activities (3,131) (3,131) Total FY 2022-23 Budget 2.50 $567,660 $0 $567,660
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • City Clerk 105
139
Item # 1.

Budget Narrative and Summary
106 City of Milpitas • City Clerk
140
Item # 1.

Economic Development
Economic Development Director: Alex Andrade
Mission Statement Description
To provide services and resources to the business and
development communities with the purpose of attracting, retaining and expanding business and employment
opportunities for area residents, stimulating the local economy and expanding local retail sales, transient
occupancy and commercial property tax bases while
maintaining a positive balance between growth, social
equity and the economic vitality of Milpitas.

The Office of Economic Development
strategizes, manages and directs
programs and activities such as
business retention, expansion, and
attraction, workforce development,
marketing and branding, and real
estate transactions/asset
management and development.

Budget Narrative and Summary
City of Milpitas • Economic Development 107
141
Item # 1.

Services
• COVID-19: The Office of Economic
Development continues to support Milpitas’
diverse business community as it responds to
the impacts of the COVID-19 pandemic.

Continuing in FY 2022-23, the Office of
Economic Development will continue to prioritize
its resources to focus on business recovery and
sustainability.
• Business Recruitment, Retention, and
Expansion: Enhance the City's connection to the
global economy by engaging with existing and
prospective companies in order to attract and
retain job-creating businesses.
• Small Businesses Assistance: Develop
seminars, educational programs, and collateral
materials to assist small businesses in various
aspects of business management, permits, and
marketing.
• Development Facilitation: Facilitate development
projects that generate property tax, transient
occupancy tax, and sales tax revenues.

Ombudsman for permitting process to largest
economic development projects from the
inception of the project to the completion.

Projects include hotels, mixed-use development,
industrial, restaurants, retail, etc.
• Economic Development Studies: Conduct
studies that enhance and sustain the city's
economic vitality and utilize data to enhance the
economic base of the city.
• Retail Development: Recruit key businesses that
fill retail gaps and provide sales tax revenues
and needed services to the community.
• Branding and Marketing: Develop and
implement branding and marketing strategies to
promote the city at regional, national, and
international levels.
• Economic Development Analysis: Evaluate
economic development data such as, but not
limited to jobs, gross domestic product,
populations growth locally, regionally, statewide,
and nationally; and track sales and transient
occupancy taxes to follow trends and gaps.
• Workforce Development: Support workforce
development by collaborating with regional
workforce development organizations,
educational institutions, business corporations,
and nonprofit organizations.
• Real Estate Transactions/Asset Management:

Manage the City’s real estate portfolio through
property acquisition, disposition, leases,
valuation, and analysis through CoStar
research.

Budget Narrative and Summary
108 City of Milpitas • Economic Development
142
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Accomplishments

1. Continued Economic Development Strategy
implementation (yr. 2) w/COVID-19 business
assistance, attraction, retention, diversifying
the tax base, workforce development, and
real estate transactions
P

2. Implemented Council approved American
Rescue Plan Act (ARPA) Programs: Small
Business Grant Program, Hotel Assistance,
Workforce Development, Storefront
Improvements, Chamber of Commerce and
hired limited-term Economic Development
Specialist.

3. Completed COVID-19 Workforce Recovery
Program Phase I/II resulting in career
assessment, navigation and counseling
services for Milpitas residents.

4. Completed Fiscal Benefits of Employment
Lands Study Phase I/II to preserve and
protect commercial property for the future
Innovation District & Metro Specific Plan.

5. Launched International Trade & Commerce
and Storefront Improvement Grant Program. P
6 Hosted 5th Annual Manufacturing Day in
partnership with the Economic Development
and Trade Commission, MUSD, and
advanced manufacturing businesses.Over
250 MUSD students participated.

P
7 1432-1446 S. Main St. - Initiated
environmental assessment analysis,
exploring tenant relocation grants, and
marketing for disposition of Parcel #1 per
Council direction.

P
8 Executed a Commercial Lease Agreement
with Nibbi Bros. General Contractor’s for
Sango and Tarob Court City-owned
properties for construction staging, storage,
and employee parking.

P
9 Developed and implemented 305 branding
and marketing promotions through social
medial, webinars, and other digital/print/email
media platforms.

P
10 Co-hosted 8 monthly Community
Development Roundtable meetings in
collaboration with the City Manager’s Office. P
Budget Narrative and Summary
City of Milpitas • Economic Development 109
143
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Initiatives

1. Cultivate a strong, stable and diverse local
economy (continued emphasis on COVID-19
business assistance and recovery) P P P

2. Achieve fiscal sustainability and maintain
adequate revenues to provide quality and
essential public services. P P P P P P P

3. Encourage new development in key
opportunity areas that provide high-quality
work environments and competitive
business locations.

P P

4. Pursue economic development
opportunities that foster and improve local
quality of life. P P

5. Increase community workforce
preparedness and cultivate an
entrepreneurial environment that fosters
innovation.

P P P
Budget Narrative and Summary
110 City of Milpitas • Economic Development
144
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Corporate Visitation Program - Percent of
corporate visits that may lead to a follow up
100% 0%* 100% 71% 100%
Business Engagement - Percent of
meetings with the corporate, brokerage and
development communities that may lead to
business attraction, retention and expansion
1000% 473% 100% 250% 100%
Customer Service - Percent of business
partners engaged with the Economic
Development team who rank their
experience as "very good" or "excellent" on
a survey
N/A 80 70% 70% 70%
ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Corporate Visitation Program - Number of
corporate visits
7 0* 7 5* 5
Business Engagement - Number of
meetings with the corporate, brokerage and
development communities
546 260 100 250 35
Permit Assistance - Number of firms who
received permit and other assistance from
Economic Development staff
35 36 30 27 20
Branding - Number of promotions and
marketing of the local business community
through social media and other digital media
platforms
54 117 25 305 25
*Program has been on pause due to the pandemic
Budget Narrative and Summary
City of Milpitas • Economic Development 111
145
Item # 1.

Budget Summary

PERSONNEL SERVICES
4111 Permanent Salaries $337,646 $440,749 $461,683 $478,436 $16,753 3.6 % 4112 Temporary Salaries 24,510 21,780 38,098 38,097 (1) 0.0 % 4121 Allowances 6,600 3,554 6,600 6,600 0 0.0 %
4124 Leave Cashout 0 2,957 0 0 0 0.0 %
4131 PERS 127,129 145,251 155,336 151,114 (4,222) (2.7) % 4132 Group Insurance 49,630 64,555 68,954 72,168 3,214 4.7 % 4133 Medicare 5,260 6,697 7,242 7,839 597 8.2 %
4135 Worker's Compensation 2,295 2,401 2,464 2,670 206 8.4 % 4138 Deferred Comp-Employer 917 3,825 1,800 2,700 900 50.0 % 4139 PARS 365 339 468 834 366 78.2 %
4146 Short Term Disability 0 0 252 900 648 257.1 %
4161 Retiree Medical Reserve 20,274 3,241 3,093 3,379 286 9.2 % sub-total 574,692 695,349 745,990 764,737 18,747 2.5 %

SUPPLIES AND CONTRACTUAL SERVICES
4200 Community Promotion,Grant/
Loan 0 0 6,240 6,240 0 0.0 %
4220 Supplies 408 82 1,500 1,593 93 6.2 %
4230 Services 202,996 56,253 105,000 155,000 50,000 47.6 % 4500 Training, Travel, &
Memberships 26,970 29,592 37,077 38,277 1,200 3.2 %
sub-total 230,374 85,927 149,817 201,110 51,293 34.2 % TOTAL $805,066 $781,276 $895,807 $965,847 $70,040 7.8 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Staffing
Econ Development Specialist 1.00 1.00 1.00 1.00 0.00
Economic Development
Coordinator 1.00 1.00 1.00 1.00 0.00
Economic Development
Director 1.00 1.00 1.00 1.00 0.00
Total Positions 3.00 3.00 3.00 3.00 0.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Budget Narrative and Summary
112 City of Milpitas • Economic Development
146
Item # 1.

Expenditures by Category
Personnel Services
$764,737

79.2%
Supplies and Contractual Services
$201,110

20.8%
Budget Reconciliation
PRIOR YEAR BUDGET 3.00 $895,807 $0 $895,807
Adjustments to Costs of Ongoing Activities
Salary and Benefits 0.00 17,905 0 17,905
Non-Personnel Expenditure Alignment to
Historical Trend 2,135 2,135
Adjustments to Costs of Ongoing Activities 0.00 20,040 0 20,040 Total FY 2022-23 Base Budget 3.00 $915,847 — $915,847
Service Level Changes
Property Asset Management Fees (One-Time) 50,000 50,000 Total Service Level Changes 0 50,000 0 50,000
Total FY 2022-23 Budget 3.00 $965,847 $0 $965,847
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Economic Development 113
147
Item # 1.

Service Level Changes
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
1 Property Asset Management Service $50,000 $0 $50,000
This action provides one-time funding for a consultant to provide services for developing and managing the City’s real estate portfolio, and plan for future acquisition, disposition, leasing, relocation, valuation, and property management. The consultant will provide a real estate management report that describes the City’s real estate assets; mapping of assets; develop real property policies and activities; business relocation services; procedures for property disposition and leasing, appraisals, preliminary title reports, grant deeds, purchase and sale agreements, and due diligence and administration of all real estate transactions. The consultant’s real estate management services and report will result in a better understanding of current and future real property asset needs.

Performance Results

The consultant is expected to develop a complete asset management portfolio, centralized location of relevant documents (i.e., grant deed documents, purchase of sale agreements, lease agreements, disposition of property, etc.), streamlined real estate transactions processes and a real estate management report.

Impact if funding is not approved
If this action is not funded, the City will miss an opportunity to develop a real property and asset management strategy, which could hinder economic and community development efforts and diversifying the City’s tax base.

Total Service Level Changes $50,000 $0 $50,000
Budget Narrative and Summary
114 City of Milpitas • Economic Development
148
Item # 1.

City Attorney
City Attorney: Michael Mutalipassi
Mission Statement Description
The Office of the City Attorney provides
cost effective legal representation,
analysis and guidance to the City
Council and City staff at the highest
level of professionalism.

This department provides general legal advice and services to the City Council, RDA Successor Agency, Housing Authority, City Commissions, City Manager, City departments and other entities as approved by City Council. The City Attorney's department prepares or approves as to form all proposed ordinances, resolutions, agreements and amendments thereto. This department negotiates and drafts complex agreements, including at times development agreements with developers. This department represents the City in litigation and supervises litigation of PLAN JPA appointed counsel. This department also provides guidance in personnel matters.

Budget Narrative and Summary
City of Milpitas • City Attorney 115
149
Item # 1.

Services
• General legal advice
• Personnel advice
• Litigation
• Employee legal training
• Compliance advice related to current and
forthcoming federal and State regulations
• Housing Authority and RDA Successor Agency
legal services
• Land use advice and document preparation
• Conflict of Interest and Open Government
guidance
Budget Narrative and Summary
116 City of Milpitas • City Attorney
150
Item # 1.

City Attorney
*Temporary placeholder positions, final positions to be determined by City Council and City Attorney Budget Narrative and Summary
City of Milpitas • City Attorney 117
151
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Accomplishments

1. Provided superior, affordable, timely legal
advice and service P P P P P P P

2. Continued to serve the Police Department on
gun confiscation petitions and other related
matters P P

3. Provided ongoing legal training to staff,
commissions, etc., including training on
resolutions, ordinances and public hearings P P

4. Provided ongoing advice re: TASP and
development in the TASP, including BART
project P P P

5. Updated various Municipal Code sections, as
authorized P P P P P P P

6. Assist staff with various ordinances regarding
affordable housing P P

7. Prepare all legal documents for the sales tax
ballot measure, review educational
information to the community, and prepare
legal documents, including ordinance,
necessary for the State of California to
collect the tax
P

8. Assist with complex litigation matters P P P P

9. Aide the City Council in various conflict, gift,
and ethics questions P

10. Continue to advise on Public Records Act
requests and provide training for City staff on
the Public Records Act P
Initiatives

1. Continue to provide superior, affordable,
timely legal advice and service P P P P P P P

2. Continue to advise the Council on various
legal issues including conflicts of interest, gift
rules, and ethics compliance P

3. Continue to offer various legal trainings to
staff and coordinate on ethics training, sexual
harassment avoidance training, and other
timely topics
P

4. Continue to update the Municipal Code
based on changes in the law P P P P P P P

5. Work in tandem with City staff to ensure legal
compliance P P P P P P P

6. Continue to monitor all pending litigation and
provide timely updates to the Council P
Budget Narrative and Summary
118 City of Milpitas • City Attorney
152
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Contract complaints / Council agenda
contracts
0 / 81 0 / 92 0 / 85 0 / 92 0 / 85
Documents timely produced for Council and
Planning Commission Agendas
100% 100% 100% 100% 100%
ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Ordinances
16 15 15 15 15
Resolutions (Council & Planning Commission)
117 115 105 115 105
Contracts reviewed / approved
484 485 450 485 450
Court / administrative cases handled /
supervised
39 40 40 40 40
Budget Summary

PERSONNEL SERVICES
4111 Permanent Salaries $116,176 $116,792 $0 $547,000 $547,000 0.0 % 4124 Leave Cashout 0 4,204 0 0 0 0.0 %
4131 PERS 42,138 36,891 0 0 0 0.0 %
4132 Group Insurance 12,335 12,452 0 0 0 0.0 %
4133 Medicare 1,694 1,774 0 0 0 0.0 %
4135 Worker's Compensation 492 536 0 0 0 0.0 %
4138 Deferred Comp-Employer 900 900 0 0 0 0.0 %
4146 Short Term Disability 0 0 0 0 0 0.0 %
4161 Retiree Medical Reserve 4,908 773 0 0 0 0.0 %
sub-total 178,643 175,527 0 827,846 827,846 0.0 %
DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Budget Narrative and Summary
City of Milpitas • City Attorney 119
153
Item # 1.

SUPPLIES AND CONTRACTUAL SERVICES
4220 Supplies 384 0 0 0 0 0.0 %
4230 Services 1,083,024 1,310,493 1,074,099 429,099 (645,000) (60.1) % sub-total 1,083,408 1,310,493 1,074,099 429,099 (645,000) (60.1) % TOTAL $1,262,051 $1,486,020 $1,074,099 $1,256,945 $182,846 17.0 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Staffing
Executive Assistant 0.00 1.00 0.00 0.00 0.00
Executive Secretary 1.00 0.00 0.00 0.00 0.00
City Attorney 0.00 0.00 0.00 1.00 1.00
Legal Secretary 0.00 0.00 0.00 1.00 1.00
Assistant City Attorney 0.00 0.00 0.00 1.00 1.00
Total Positions 1.00 1.00 0.00 3.00 3.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Expenditures by Category
Personnel Services
$827,846

65.9%
Supplies and Contractual Services
$429,099

34.1%
Budget Narrative and Summary
120 City of Milpitas • City Attorney
154
Item # 1.

Budget Reconciliation
PRIOR YEAR BUDGET 0.00 $1,029,100 $45,000 $1,074,100
Adjustments to Costs of Ongoing Activities
Departmental In-House Restructure Costs 3.00 169,846 13,000 182,846 Adjustments to Costs of Ongoing Activities 3.00 169,846 13,000 182,846 Total FY 2022-23 Budget 3.00 $1,198,946 $58,000 $1,256,946 Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • City Attorney 121
155
Item # 1.

Budget Narrative and Summary
122 City of Milpitas • City Attorney
156
Item # 1.

Building Safety and Housing
Building Safety and Housing Director: Sharon Goei
Mission Statement Description
The Building Safety and Housing Department is
dedicated to enhancing the community's safety,
welfare, economic vitality, and quality of life by
ensuring that buildings are reviewed, permitted,
and inspected to be safe, sustainable, and resilient.

Preserving the quality and beauty of neighborhoods
through enforcement of City regulations and
creating, increasing, and preserving affordable
housing and supportive programs for the
community are also at the forefront of efforts by the
Department to promote the health and welfare of
this vibrant and diverse City.

The Building Safety and Housing Department provides
plan review, permitting, and inspection services to
implement building safety codes and standards to
safeguard public health and safety for the built
environment. The Department provides code
enforcement services to enhance neighborhood quality
and general welfare. The Department also administers
the Housing Authority and Community Development
Block Grant programs, and develops and implements
policies and programs to create affordable housing,
assist vulnerable residents, and enhance supportive
services for the community.

Budget Narrative and Summary
City of Milpitas • Building Safety and Housing 123 157
Item # 1.

Services
• Perform review of construction plans and
documents, and conduct inspections, including
occupancy inspections, to ensure safety through
compliance with technical codes, State and local
regulations, and acceptable engineering practices.
• Assist customers in obtaining building permits and
monitoring plan submittal process from initial
submittal to permit issuance using 'One Point of
Contact' approach.
• Process permit applications, collect permit fees,
perform records research, and maintain building
plans and records.
• Implement technology systems and improvements
to enhance service delivery to the community.
• Develop and update an easy-to-follow website
allowing customers to receive up-to-date
information on housing resources, housing
policies, programs, and code requirements; submit
permit applications; obtain submittal requirements;
and ask questions regarding other Building Safety
and Housing information.
• Meet with developers, design professionals,
homeowners, and contractors to assist them in the
timely issuance of permits and completion projects
including after business hours services as
requested.
• Provide assistance to the Fire Department in fire
investigations and building owners for other
emergencies.
• Provide assistance and inspections to mobile
home parks.
• Provide code enforcement services to correct
Health and Safety Code and Municipal Code
violations to enhance neighborhood quality and
general welfare.
• Administer programs for abandoned vehicles,
shopping carts, animal control, and neighborhood
beautification.
• Prepare the City’s Housing Element, Assessment
of Fair Housing, and administer the City’s
Affordable Housing Ordinance to advance toward
the City's Regional Housing Needs Allocation
(RHNA) goals.
• Administer the City’s Rent Relief Program to aid
Milpitas residents who are at risk of eviction.
• Conduct outreach events and workshops in
partnership with regional nonprofits to
communicate with and serve Milpitas’ vulnerable
population.
• Manage and maintain the City's Below Market
Rate homeownership program and selection
process.
• Identify or coordinate funding sources for
affordable housing development and preservation.
• Administer the City's Housing Authority and related
properties.
• Manage the Community Development Block Grant
(CDBG) program to serve low and moderate
income residents through public services, capital
projects, and fair housing services.
• Serve as the staff liaison to the City Council
Housing Subcommittee, Community Advisory
Commission, and housing-related bodies.
• Administer programs to assist unhoused residents
including the mobile shower and laundry program
and the homeless outreach, assessment and
street-based case management services in
partnership with the Santa Clara County Office of
Supportive Housing.

Budget Narrative and Summary
124 City of Milpitas • Building Safety and Housing 158
Item # 1.

Building Safety and Housing
Budget Narrative and Summary
City of Milpitas • Building Safety and Housing 125 159
Item # 1.

Accomplishments

1. Conducted extensive analysis and outreach,
developed recommendations, and received
Council direction for Housing Authority- and
City-owned South Main St. properties.

P P P P P P P

2. Created Accessory Dwelling Unit (ADU)
Incentive Program using ARPA funds to
encourage ADU production and create more
housing. Created Safe ADU Legalization
Program to encourage residents to legalize
and improve the safety of ADUs.

P P P

3. Served as staff liaison to Homelessness Task
Force and facilitated Task Force Report
presentation to City Council. P P P P P P

4. Implemented services for unhoused
residents; created monthly reports for
outreach and assessment, and mobile
shower and laundry services.

P P P P P P

5. Managed the Community Development Block
Grant program and partnered with non-profits
to serve low and moderate income residents.

Developed 3-year Consolidated Plan.

P P P P P P

6. Developed amendments to Affordable
Housing Ordinance to clarify and strengthen
affordable housing policies and encourage
on-site affordable housing production.

Implemented Council-adopted selection
criteria through developing a new process.

P P P P

7. Initiated work on Assessment of Fair Housing
and 2023-2031 Housing Element to plan for
housing needs across community; initiated
community engagement and sites inventory.

P P P P

8. Continued providing housing resources and
assistance programs (e.g., Rent Relief
Program). Conducted outreach and
workshops on fair housing and tenant
support resources in partnership with
nonprofits for vulnerable residents.

P P P P

9. Overhauled building permit inspection list to
streamline inspection process. Developed a
new set of code enforcement notification
letters to increase compliance.

P P P P P P

10. Continued development review, permitting,
and inspection functions through the
pandemic; implemented safety protocols for
internal staff and external builders.

P P P P P P
Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Budget Narrative and Summary
126 City of Milpitas • Building Safety and Housing 160
Item # 1.

Initiatives

1. Complete Assessment of Fair Housing and
2023-2031 Housing Element to plan for
housing needs and establish policies and
strategies to accommodate housing growth
to meet the City's Regional Housing Needs
Allocation (RHNA) goals and promote fair
housing.

P P P P

2. Develop and enhance reach codes to reduce
greenhouse gas emissions; conduct
community outreach to implement and
promote green development.

P P P P P

3. Expand Rent Relief Program and create
mortgage relief program utilizing ARPA
funding. Continue to conduct outreach on
housing resources and assistance programs
for vulnerable residents.

P P P P

4. Implement FY2022-2025 Consolidated Plan
and continue to manage the Community
Development Block Grant program and
partner with nonprofits to assist low and
moderate income residents.

P P P P P P

5. Continue homeless response and prevention
efforts in collaboration with the County and
other nonprofit partners. P P P P P P

6. Continue to collaborate with Departments on
South Main St. properties’ disposition or
development. P P P P P P P

7. Continue to facilitate affordable housing
production and preservation. Identify,
implement, and administer programs to
create more affordable housing opportunities.

P P P P P

8. Continue to conduct recruitment for vacant
positions to enhance service delivery.

Provide resources, training, and professional
development opportunities for team
members.

P P P

9. Continue outreach with development
community to improve service delivery.

Continue to streamline and enhance plan
review, permitting, and inspection processes
for increased efficiency and effectiveness.

P P P P P P

10. Continue to implement technology
improvements, website updates, along with
improvement of permit system and electronic
plan review and integration with other
systems, to increase efficiency and enhance
service delivery to the community.

P P P P P
Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Budget Narrative and Summary
City of Milpitas • Building Safety and Housing 127 161
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Percent of customers rating service at Permit
Center "Very Good" or "Excellent"
N/A 76% 85% 90% 90%
Percent of Over-the-Counter Building Permit
Plan Reviews (including express tenant
improvements)
28% 41% 40% 40% 40%
Building permits for new development projects:
1) New development first submittal
average plan review turnaround time
(business days)
N/A N/A 30 36 35
2) New development subsequent
submittal average plan review
turnaround time (business days)
N/A N/A 25 28 25
Building permits for tenant improvements:
1) Tenant Improvement first submittal
average plan review turnaround time
(business days)
N/A N/A 25 29 25
2) Tenant Improvement subsequent
submittal average plan review
turnaround time (business days)
N/A N/A 20 22 20
Building permits for residential remodel/addition:
1) Residential remodel/addition first
submittal average plan review
turnaround time (business days)
N/A N/A 20 30 25
2) Residential remodel/addition
subsequent submittal average plan
review turnaround time (business days)
N/A N/A 15 27 20
Percent of building inspections completed
within one day
97% 99% 95% 98% 98%
Percent of customers rating inspection
services "Very Good" or "Excellent"
N/A 75% 85% 90% 90%
Percent of code enforcement cases in
compliance within 30 days
77% 77% 75% 61% 75%
Budget Narrative and Summary
128 City of Milpitas • Building Safety and Housing 162
Item # 1.

ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Total customers served by Permit
Center
5,477 8,069 5,400 12,000 13,000
Total Over-the-Counter Permit
Reviews
1,339 2,326 1,400 2,200 2,300
Total issued building permit
construction valuation
$603,090,345 $187,485,526 $300,000,000 $200,000,000 $250,000,000 Total building permits issued
2,980 3,560 3,000 3,600 3,800
Total plan reviews completed
4,826 5,677 4,900 5,000 5,200
Total building inspections completed
17,711 16,935 18,000 16,000 17,000
Total code enforcement customer
service requests
559 569 600 570 600
Total residents served through
CDBG program service
organizations
855 2,826 2,000 1,800 1,800
Budget Narrative and Summary
City of Milpitas • Building Safety and Housing 129 163
Item # 1.

Budget Summary
Building Inspection $2,375,915 $2,291,862 $2,260,895 $2,335,236 $74,341 3.3 % Building Safety and Housing
Administration 837,153 853,099 857,152 878,314 21,162 2.5 % Housing and Neighborhood
Svcs 2,223,277 3,259,898 3,557,642 3,094,665 (462,977) (13.0) % Permit Center 612,487 892,992 882,633 904,652 22,019 2.5 % Plan Review 734,314 1,109,904 1,360,132 1,553,201 193,069 14.2 % TOTAL $6,783,146 $8,407,755 $8,918,454 $8,766,064 ($152,390) (1.7) % DOLLARS BY FUNCTION 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %

PERSONNEL SERVICES
4111 Permanent Salaries $3,040,572 $3,409,987 $4,111,840 $4,344,745 $232,905 5.7 % 4112 Temporary Salaries 149,400 79,513 17,850 17,850 0 0.0 % 4113 Overtime 31,934 126,238 70,000 70,000 0 0.0 %
4121 Allowances 6,600 3,554 5,282 13,200 7,918 149.9 % 4124 Leave Cashout 75,452 154,522 0 0 0 0.0 %
4131 PERS 1,253,381 1,168,314 1,375,684 1,341,179 (34,505) (2.5) % 4132 Group Insurance 505,777 530,673 628,423 721,933 93,510 14.9 % 4133 Medicare 47,570 54,437 59,957 63,463 3,506 5.8 %
4135 Worker's Compensation 12,076 27,648 27,715 25,893 (1,822) (6.6) % 4138 Deferred Comp-Employer 23,007 21,774 25,424 28,800 3,376 13.3 % 4139 PARS 287 0 268 268 0 0.0 %
4146 Short Term Disability 0 0 2,604 9,382 6,778 260.3 % 4161 Retiree Medical Reserve 195,914 38,587 34,486 38,712 4,226 12.3 % sub-total 5,341,970 5,658,536 6,359,533 6,657,425 297,892 4.7 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Budget Narrative and Summary
130 City of Milpitas • Building Safety and Housing 164
Item # 1.

SUPPLIES AND CONTRACTUAL SERVICES
4200 Community Promotion,Grant/
Loan 335,512 1,365,260 1,558,213 828,840 (729,373) (46.8) % 4210 Department Allocations 53,971 31,574 26,907 22,704 (4,203) (15.6) % 4220 Supplies 61,006 11,655 34,000 34,000 0 0.0 %
4230 Services 960,315 1,316,428 894,900 1,158,200 263,300 29.4 % 4500 Training, Travel, &
Memberships 30,372 24,302 44,900 64,900 20,000 44.5 %
sub-total 1,441,176 2,749,219 2,558,920 2,108,644 (450,276) (17.6) % TOTAL $6,783,146 $8,407,755 $8,918,453 $8,766,064 ($152,384) (1.7) % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Staffing
POSITIONS BY FUNCTION 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Building Safety and Housing
Administration 3.00 3.00 3.00 3.00 0.00
Building Inspection* 13.00 12.00 11.00 11.00 0.00
Housing and Neighborhood
Svcs 6.00 6.00 6.00 6.00 0.00
Permit Center 5.00 5.00 5.00 5.00 0.00
Plan Review* 6.00 7.00 6.00 6.00 0.00
TOTAL 33.00 33.00 31.00 31.00 0.00
*1.0 Building Inspector and 1.0 Plan Checker are defunded.

Administrative Analyst II 1.00 1.00 1.00 2.00 1.00
Assistant Planner 1.00 1.00 1.00 0.00 (1.00)
Building Safety and Housing
Director 1.00 1.00 1.00 1.00 0.00
Building Inspection Manager 1.00 1.00 1.00 1.00 0.00
Building Official 1.00 1.00 1.00 1.00 0.00
Building Permit Technician 2.00 3.00 3.00 3.00 0.00
Building/NP Inspector* 9.00 8.00 7.00 7.00 0.00
Code Enforcement Officer 1.00 1.00 1.00 1.00 0.00
Housing and Neighborhood
Services Manager 1.00 1.00 1.00 0.00 (1.00)
Housing Authority Administrator 1.00 1.00 1.00 0.00 (1.00) POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Budget Narrative and Summary
City of Milpitas • Building Safety and Housing 131 165
Item # 1.

Housing and Neighborh'd
Services Administrator 0.00 0.00 0.00 1.00 1.00
Office Assistant II 1.00 1.00 1.00 1.00 0.00
Office Specialist 1.00 0.00 0.00 0.00 0.00
Plan Check Engineer 3.00 3.00 3.00 3.00 0.00
Plan Checker* 1.00 2.00 1.00 1.00 0.00
Plan Review Manager 1.00 1.00 1.00 1.00 0.00
Senior Administrative Analyst 1.00 1.00 1.00 2.00 1.00
Senior Building Inspector 3.00 3.00 3.00 3.00 0.00
Senior Plan Check Engineer 1.00 1.00 1.00 1.00 0.00
Sr. Code Enforcement Officer 2.00 2.00 2.00 2.00 0.00
Total Positions 33.00 33.00 31.00 31.00 0.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
*1.0 Building Inspector and 1.0 Plan Checker are defunded.

Expenditures by Function
Building Safety and Housing
Administration
$878,314

10.0%
Building Inspection
$2,335,236

26.6%
Housing and Neighborhood Svcs
$3,094,665

35.3%Permit Center
$904,652

10.3%
Plan Review
$1,553,201

17.7%
Budget Narrative and Summary
132 City of Milpitas • Building Safety and Housing 166
Item # 1.

Budget Reconciliation
PRIOR YEAR BUDGET 31.00 $5,833,754 $3,084,700 $8,918,454 Adjustments to Costs of Ongoing Activities
Salary and Benefits 22,608 95,976 118,584
Contractual Service Increase (San Jose Animal
Services) 108,900 108,900
Non-Personnel Expenditure Changes to Align
with Current Trend (5,600) (5,600)
Contractual Service Decrease (Project Sentinel) (40,000) (40,000) Decrease in CDBG Grant Funding (722,373) (722,373)
Equipment Replacement Amortization (4,203) (4,203)
Adjustments to Costs of Ongoing Activities 0 121,705 (666,397) (544,692) Total FY2022-23 Base Budget 31.00 5,955,459 2,418,303 8,373,762 Service Level Changes
Accessibility Training 20,000 20,000
Professional Service Enhancement 200,000 200,000
Housing Staff Enhancement (1 FTE, Limited
Term) 172,302 172,302
Total Service Level Changes 0 220,000 172,302 392,302
Total FY 2022-23 Budget 31.00 $6,175,459 $2,590,605 $8,766,064 Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Building Safety and Housing 133 167
Item # 1.

Service Level Changes
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
1 Housing Staff Enhancement $0 $172,302 $172,302
This action funds a limited-term Administrative Analyst II (Housing) position for three years to administer the rent and mortgage relief program, homeless response services, resources and prevention initiatives, and Council priorities. Existing Staff resources are fully committed to delivering existing services and programs, many of which include require complying with federal and state mandates. Multiple new programs and initiatives have been added because of significantly increased funding, including ARPA, and other Council funded priorities. These include managing CDBG and Coronavirus funding programs; implementing rent and mortgage relief programs; implementing homeless outreach and assessment services; implementing mobile shower and laundry for unhoused residents; and conducting research on homeless resources and programs. In order to accomplish these new programs and initiatives, ensure compliance, and achieve Council’s housing priorities, this limited term position is being proposed. Staff has also been working on many policy initiatives including the Housing element, Assessment of Fair Housing and Affordable Housing Ordinance.

Performance Results

This position is expected to enable staff to carry out new programs, initiatives, and Council housing priorities funded by ARPA and other funding and ensure compliance with applicable state and federal regulations.

Impact if funding is not approved
If this action is not funded, some initiatives will be delayed. Without additional staff resources, staff will not be able to pursue potential funding or program opportunities that will benefit the Milpitas community.

Budget Narrative and Summary
134 City of Milpitas • Building Safety and Housing 168
Item # 1.
2 Professional Services Enhancement $200,000 $0 $200,000 This action funds Building Safety and Housing (Department) Professional Services to assist with Building Safety Programs for FY2022-23. Building safety professional services contracts are for services on an as-needed and on-call basis and can encompass plan review, inspection, or permit processing. Recruitments stopped due to the pandemic and while recruitments began again in FY2021-22, staffing has been insufficient and this issue was compounded by staff departures and vacancies in the department. In light of the uncertain staff situation and increased workload, the use of contractual services can enable the department to maintain a minimum level of service. Cost of this proposal will be paid from departmental vacancy savings as funding availability allows.

Performance Results:

Professional services contract will allow the Department to operate efficiently and effectively and maintain adequate level of service during staffing shortages.

Impact if funding is not approved
If this action is not funded, the Department service delivery can become negatively impacted and delay plan review, inspection and permit processing.
3 Accessibility Training $20,000 $0 $20,000
This action funds accessibility training to improve compliance with federal and state disability laws. The expenditure is offset with state fees collected from local business licenses to increase disability access training and compliance with construction related accessibility requirements.

Performance Results:

Staff will be trained in accordance with state legislation and better equipped to enforce compliance with federal and state disability laws.

Impact if funding is not approved
If this action is not funded, compliance with federal and state disability laws may be negatively impacted.

Total Service Level Changes $220,000 $172,302 $392,302
Budget Narrative and Summary
City of Milpitas • Building Safety and Housing 135 169
Item # 1.

Budget Narrative and Summary
136 City of Milpitas • Building Safety and Housing 170
Item # 1.

Engineering
Director of Engineering/City Engineer: Steven Erickson
Mission Statement Description
The Engineering Department
provides resources to enhance
and improve City infrastructure
through the design, management,
and construction of public
improvements, including the
administration of various public
works programs in a safe,
coordinated, timely, and cost-
effective manner with responsive
service to the entire community.

The Department provides professional engineering services for the completion of the City's annual Capital Improvement Program (CIP), performs construction inspection services for both capital projects and private development construction impacting streets and the public right- of- way. Department staff provide review and plan check services for private development project drawings and maps to ensure compliance with adopted city standards, and they administer encroachment permits for construction work within the public right-of-way. Department staff participate in regional programs and coordinate with local agencies in the areas of flood control, urban runoff, and transportation. The Engineering Department has three functions: Design & Construction, Land Development, and Transportation & Traffic.

Budget Narrative and Summary
City of Milpitas • Engineering 137
171
Item # 1.

Services
• The Engineering Director/City Engineer leads
the Department, including the allocation of
resources, determination of staff assignments,
and oversees the workload to ensure that
infrastructure and work constructed within the
City's right-of- way is completed in accordance
with industry standards, City codes, state, and
federal regulations to protect public health and
safety.
• Design & Construction staff oversee the
preparation of construction documents,
administer and manage construction contracts
for the completion of the City's Capital
Improvement Program (CIP). Design &
Construction Section staff, in conjunction with
the Finance Department, create the annual 5-
year Capital Improvement Program (CIP)
document which funds and prioritizes the
completion of capital projects for streets, water,
sewer, storm drain utilities, parks, and
community infrastructure. Design &
Construction Inspection staff review city capital
and private development construction projects
for compliance with the City standards.
• Land Development staff manage right-of- way
encroachments and review private development
plans and maps for conformance with City
Standards, local, state and federal requirements.

Staff ensure private development projects provide
required public infrastructure in accordance with
development Conditions of Approval. Land
Development staff manage encroachment permits
for construction within City streets and the public
right-of-way, regulate development within the
designated floodplain, maintain the City's
Community Rating System (CRS) flood insurance
rating, and manage the Engineering record
drawing library of city infrastructure.
• Transportation & Traffic engineering staff
provide technical review and evaluation of traffic
and transportation studies related to
development within the City. Staff oversees the
operation and timing of traffic signals to ensure
safe and efficient operation, reviews
construction documents for streets and
transportation projects, manages the City's
pavement condition index, and completion of
annual pavement resurfacing projects.

Budget Narrative and Summary
138 City of Milpitas • Engineering
172
Item # 1.

Engineering
Budget Narrative and Summary
City of Milpitas • Engineering 139
173
Item # 1.

Accomplishments

1. Calaveras Bridge Widening CEQA P P P

2. Fire Station 2 Replacement P P

3. Parks & Recreation Master Plan Update P P P P

4. McCandless Park Phase 1 Construction P P P

5. Montague Pedestrian Bridge P P

6. City Building ADA Compliance Review P P

7. Annual City Street Resurfacing P P
Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Initiatives

1. Costa Street Plan Line Study P P P

2. Light Rail Pedestrian Bridge Study P P

3. Citywide Traffic Modeling P P

4. Traffic Safety Assessment P P

5. LLMD Landscape Renovation P P

6. ARPA Park Improvements P P P
Budget Narrative and Summary
140 City of Milpitas • Engineering
174
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Mandated FEMA / CRS goals achieved
100% 100% 100% 100% 100%
State mandated storm water permit goals
achieved
100% 100% 100% 100% 100%
CIP projects completed on schedule /
budget (no additional time/budget
requested)
100% 100% 100% 100% 100%
Number of Encroachment Permits for
subdivisions and major projects/% first
review completed within 45 calendar days
10/90% 0/100% 6/100% 4/100% 7/100%
Number of Minor Encroachment Permits/
% first review completed within 30
calendar days
242/90% 142/100% 220/100% 226/100% 310/100%
ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Value of CIP construction contracts
awarded
$9M $20.3M $10.2M $6M $5.65M
Construction contracts awarded
12 12 8 1 5
CIP & Private Development Projects
Completed
10 18 16 9 16
Professional services contracts awarded
20 36 11 5 11
Encroachment permits reviewed and
approved
221 207 220 138 220
Number of Encroachment Permit
Inspections Completed
2,434 2,261 2,300 1,522 2,300
Budget Narrative and Summary
City of Milpitas • Engineering 141
175
Item # 1.

Budget Summary
Design & Construction* $917,688 $868,528 $1,158,233 $1,572,420 $414,187 35.8 % Engineering Administration* 487,691 468,931 357,424 339,855 (17,569) (4.9) % Land Development 1,747,671 1,912,621 1,691,177 1,495,256 (195,921) (11.6) % Traffic Engineering* 406,375 548,925 641,147 664,131 22,984 3.6 % TOTAL $3,559,425 $3,799,005 $3,847,981 $4,071,662 $223,681 5.8 % DOLLARS BY FUNCTION* 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %

PERSONNEL SERVICES
4111 Permanent Salaries $1,822,966 $1,979,046 $1,574,686 $1,635,578 $60,892 3.9 % 4112 Temporary Salaries 9,396 33,000 108,873 117,749 8,876 8.2 % 4113 Overtime 3,058 7,366 8,500 8,500 0 0.0 %
4121 Allowances 6,600 3,554 5,851 6,600 749 12.8 %
4124 Leave Cashout 43,972 111,878 0 0 0 0.0 %
4131 PERS 731,481 674,652 1,101,229 1,061,498 (39,731) (3.6) % 4132 Group Insurance 293,755 321,768 528,611 591,001 62,390 11.8 % 4133 Medicare 27,418 31,018 48,056 49,178 1,122 2.3 %
4135 Worker's Compensation 3,373 10,157 18,209 16,886 (1,323) (7.3) % 4138 Deferred Comp-Employer 19,950 18,520 19,804 20,700 896 4.5 % 4139 PARS 0 0 0 0 0 0.0 %
4141 Adjustments-Payroll 0 0 (22,168) 112,908 135,076 (609.3) % 4146 Short Term Disability 0 0 1,920 6,900 4,980 259.4 % 4161 Retiree Medical Reserve 141,423 28,320 32,737 29,545 (3,192) (9.8) % sub-total 3,103,392 3,219,279 3,426,308 3,657,043 230,735 6.7 %

SUPPLIES AND CONTRACTUAL SERVICES
4200 Community Promotion,Grant/
Loan 0 0 0 0 0 0.0 %
4210 Department Allocations 25,423 13,181 11,723 11,213 (510) (4.4) % 4220 Supplies 9,737 3,233 9,750 9,900 150 1.5 %
*For FY 2022-23, costs for staff for three functions in the Engineering Department totaling $1,652,051, which directly support the Capital Improvement Program, are charged to the capital projects as follows: Engineering Administration ($213,214); Design & Construction ($1,279,575); and Traffic Engineering ($159,262). These costs are not included in this presentation.

DOLLARS BY CATEGORY* 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Budget Narrative and Summary
142 City of Milpitas • Engineering
176
Item # 1.
4230 Services 1,486,349 1,962,014 392,850 386,106 (6,744) (1.7) % 4240 Repair & Maintenance 0 0 0 0 0 0.0 %
4500 Training, Travel, &
Memberships 2,580 5,121 7,350 7,400 50 0.7 %
sub-total 1,524,089 1,983,549 421,673 414,619 (7,054) (1.7) % TOTAL $4,627,481 $5,209,692 $3,847,981 $4,071,662 $223,681 5.8 % DOLLARS BY CATEGORY* 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Staffing
POSITIONS BY FUNCTION 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Design & Construction 11.00 11.00 11.00 13.00 2.00
Engineering Administration 2.00 2.00 2.00 2.00 0.00
Land Development* 9.00 8.00 7.00 7.00 0.00
Traffic Engineering 3.00 3.00 3.00 3.00 0.00
TOTAL 25.00 24.00 23.00 25.00 2.00
*1.0 Associate Civil Engineering in Land Development is defunded.

Administrative Analyst II 1.00 1.00 1.00 1.00 0.00
Administrative Assistant 0.00 0.00 0.00 1.00 1.00
Assistant Civil Engineer 5.00 4.00 4.00 4.00 0.00
Associate Civil Engineer* 7.00 8.00 7.00 7.00 0.00
CIP Manager 1.00 1.00 1.00 1.00 0.00
Engineering Aide 2.00 2.00 2.00 2.00 0.00
Engineering Director/City Eng 1.00 1.00 1.00 1.00 0.00
Executive Assistant 1.00 1.00 1.00 0.00 (1.00)
Executive Secretary 0.00 0.00 0.00 0.00 0.00
GIS Technician 1.00 0.00 0.00 0.00 0.00
Junior Civil Engineer 1.00 1.00 1.00 2.00 1.00
Principal Civil Engineer 1.00 1.00 1.00 2.00 1.00
Public Information Specialist 0.00 0.00 0.00 0.00 0.00
Public Works Inspector 2.00 2.00 2.00 2.00 0.00
Secretary 0.00 0.00 0.00 0.00 0.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Budget Narrative and Summary
City of Milpitas • Engineering 143
177
Item # 1.

Senior Public Works Inspector 1.00 1.00 1.00 1.00 0.00
Traffic Engineer 0.00 0.00 0.00 0.00 0.00
Transportation and Traffic Mgr 1.00 1.00 1.00 1.00 0.00 Total Positions 25.00 24.00 23.00 25.00 2.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
*1.0 Associate Civil Engineering in Land Development is defunded.

Expenditures by Function
Design & Construction*
$1,572,420

38.6%
Engineering Administration*
$339,855

8.3% Land Development
$1,495,256

36.7%
Traffic Engineering*
$664,131

16.3%
*For FY 2022-23, costs for staff for three functions in the Engineering Department totaling $1,652,051, which directly support the Capital Improvement Program, are charged to the capital projects as follows: Engineering Administration ($213,214); Design & Construction ($1,279,575); and Traffic Engineering ($159,262). These costs are not included in this presentation.

Budget Narrative and Summary
144 City of Milpitas • Engineering
178
Item # 1.

Budget Reconciliation
PRIOR YEAR BUDGET 23.00 $3,740,281 $107,700 $3,847,981
Adjustments to Costs of Ongoing Activities
Salary and Benefits 118,637 118,637
Engineering Staff Capital Improvement Program
Funding Alignment (19,614) (19,614)
LLMD Contractual Adjustments (7,394) (7,394)
Equipment Replacement Amortization (510) (510)
Adjustments to Costs of Ongoing Activities 0.00 98,513 (7,394) 91,119 Total FY 2022-23 Base Budget 23.00 3,838,794 100,306 3,939,100 Service Level Changes
CIP Design and Construction Principal Engineer
Position 1.00 69,358 69,358
CIP Design and Construction Junior/Assistant
Engineer Position 1.00 63,203 63,203
Total Service Level Changes 2.00 132,561 0 132,561
Total FY 2022-23 Budget 25.00 $3,971,355 $100,306 $4,071,661 Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Engineering 145
179
Item # 1.

Service Level Changes
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures

1. CIP Design and Construction Principal
Engineer Position 1.00 $69,358 $0 $69,358
This action funds 1.0 Principal Engineer in Design and Construction (D&C) section. The section serves the community by completing City Council approved and funded Capital Improvement Program (CIP) projects identified in the annual 5-year CIP document. Projects include, but not limited to, repair and improvement of City streets, repair and replacement of underground utilities, rehabilitation of parks, TASP infrastructure and other community improvements. The D&C Section is led by the CIP Manager and has two Associate Civil Engineer and four Junior/Assistant Engineer positions with one vacancy. The Principal Engineer will assist the CIP manager in project managing and planning, preparing the annual CIP document, supervising project teams and develop and implement goals, policies, procedures and priorities of the Section.

Performance Results:

Currently, the D&C Section is working on 12 projects in various projects stages for approximately value of $50.0M. There are planned $86.0M in projects between 2023 to 2027 in proposed 2023-2027 CIP Document, a potential $75M in projects that are identified in the Utility Master Plans to be completed in the next 10-20 years, and potential $75M to $150M in infrastructure projects for Metro Specific Plan.

Current D&C staffing levels allows for staff to work on 6-9 project for approximately value between $15-$20M annually. In order to complete high volume of Projects, future infrastructure needs, and expedite City Council projects priorities such as Cardoza Park Softball Fields Improvement, South Milpitas Blvd. Bridge at Penitencia, Rose Garden Memorial, Railroad Quiet Zone, and Dempsey Road Water Line Project, additional staffing is required.

Impact if funding is not approved
If this action is not funded, the current staffing levels will not be able to reduce the CIP backlog or to deliver requested projects for the City Council, community or infrastructure needs.

Budget Narrative and Summary
146 City of Milpitas • Engineering
180
Item # 1.

2. CIP Design and Construction Junior/
Assistant Engineer Position 1.00 $63,203 $0 $63,203
This action funds 1.0 Junior/Assistant Engineer position in the Design and Construction Engineering Section (D&C). The section serves the community by completing City Council approved and funded Capital Improvement Program (CIP) projects identified in the annual 5-year CIP document. Projects include, but not limited to, repair and improvement of City streets, repair and replacement of underground utilities, rehabilitation of parks, TASP infrastructure and other community improvements. The D&C Section is led by the CIP Manager and has two Associate Civil Engineer and four Junior/Assistant Engineer positions with one vacancy. The Junior/Assistant Engineer will assist the Associate Engineers in project administration from design through construction, review and prepare construction documents and manage contracts from design consultant and contractor.

Performance Results:

Total Service Level Changes 2.00 $132,561 $0 $132,561
Budget Narrative and Summary
City of Milpitas • Engineering 147
181
Item # 1.

Budget Narrative and Summary
148 City of Milpitas • Engineering
182
Item # 1.

Finance
Finance Director: Lauren Lai, CPA, MPA
Mission Statement Description
The Finance Department is
dedicated to providing accurate,
credible and timely financial
information to support sound fiscal
management and professional
customer service to Milpitas
residents, the business community,
the City Council, and internal staff.

Finance provides a key service role to all departments, the City Council, and the public and manages the City's financial operations in accordance with industry standards and established fiscal policies. Prudent fiscal stewardship, customer service, compliance, strategic planning, transparency and effective financial reporting are key elements of its mission. The department is organized into three functions: Administration, Operations, and Fiscal Services - Utilities; each provides essential customer services and support to City departments, the City Council, and the public.

Budget Narrative and Summary
City of Milpitas • Finance 149
183
Item # 1.

Services
• Acts as an adviser to the City Manager, City
Council and Departments in the areas of
financial planning and fiscal analysis. Provides
leadership in the development and
implementation of sound financial policies for
the City.
• Develops the Ten-Year General Fund Financial
Forecast.
• Develops the annual Operating Budget on
behalf of the City Manager including projection
of revenues and expenditures; coordinates the
preparation and publication of the Operating
Budget document; and makes the annual
budget available through its transparency tool.
• Prepares the Annual Financial Report in
accordance with Generally Accepted
Accounting Principles and pronouncements of
the Governmental Accounting Standards Board
(GASB).
• Prepares and maintains accurate financial
records including grants, capital projects,
enterprise funds, governmental funds, and
fixed assets and files required grant reports
with local, state, and federal agencies.
• Provides operating departments with timely
and clear financial performance reports to
assist them in their daily decision making.
• Monitors all the capital projects that have
external funding sources to ensure collection of
funds.
• Collects and records all City revenues
including property tax, sales tax, various
service fees, utility payments, business
licenses, franchise fees, transient occupancy
taxes, levies and other revenues.
• Provides customer service to the City's utility
customers, including billing, new account
setups, inquiries and meter readings.
• Procures goods and services at competitive
prices and in compliance with Federal and
State laws and City ordinances on behalf of
City departments.
• Invests the City's idle cash in accordance with
the Council approved Investment Policy to
ensure that there is sufficient cash available to
meet operating needs while maintaining safety,
liquidity and competitive returns on the
investment portfolio.
• Manages the City's and Successor Agency's
outstanding bonds by ensuring timely
payments, performance of arbitrage
calculations and filing of required continual
disclosure reports.
• Manages all the tort claims against the City
and represents the City in the Pooled Liability
Assurance Network Joint Powers Authority
(PLAN JPA) Board.
• Processes all the payments for goods and
services timely and accurately.
• Issues payroll checks and benefits payments
bi-weekly and files all the required Federal and
State payroll tax withholding reports.
• Processes outgoing mail and distributes
incoming mail citywide.

Budget Narrative and Summary
150 City of Milpitas • Finance
184
Item # 1.

Finance Department
Budget Narrative and Summary
City of Milpitas • Finance 151
185
Item # 1.

Finance Department
Budget Narrative and Summary
152 City of Milpitas • Finance
186
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Accomplishments

1. Rebalanced the budget due to COVID-19
economic impacts P

2. Implemented invoice for online payments
including misc AR, employee
reimbursements, implemented upgrade of
current ERP, implemented online business
license application, online credit card
payment

P P P P P P

3. Implemented citywide contract management
system (ProcureNow) P P P P P

4. Received GFOA and CSMFO award for
Adopted Budget Book and GFOA award for
Annual Comprehensive Financial Report. P

5. Assisted with energy savings company
project and obtained financing P P P

6. Upgraded current ERP (Cayenta) to include
new modules Connect Finance, Employee
Self-Service Portal P

7. Improved financial reporting for departments
(Department Budget Book, Management
Reports and Trend Analysis) through
replacement of manual reports with online
analytic reporting/visualization (Tableau)
P

8. Continued to manage debt obligations
associated with previously issued Lease
Revenue Bonds and Wastewater Bonds P P

9. Implemented online business license
applications and online payment system for
miscellaneous accounts receivable items P P P P P P P

10. Assisted with the development of CIP budget
in OpenGov. P
Budget Narrative and Summary
City of Milpitas • Finance 153
187
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Initiatives

1. Review and maximize the funding from the
American Rescue Plan Act P

2. Review and maximize FEMA
reimbursements for COVID-19 Expenditures P

3. Implement a Loss Prevention Program
including analysis of department loss and
related claims experience P P P P P

4. Continue to review and update finance
related standard operating procedures P

5. Manage Section 115 Pension Trust to
stabilize future PERS pension contribution
costs P

6. Continue to update Finance standard
operating protocol (SOP) for succession
planning P

7. Continue to build ETL (extract, load and
transform) workflows to replace manual
reporting processes and enhance reporting P

8. Support Public Works with the
implementation of the Automated Meter
Infrastructure project P P P

9. Implement new banking services P

10. Support oversight committee for Measure F P P
Budget Narrative and Summary
154 City of Milpitas • Finance
188
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Consecutive years receiving award for
Distinguished Budget Presentation
19 20 21 21 22
Consecutive years receiving award for
Excellence in Financial Reporting
26 27 28 28 29
Tort Claims Resolved within 180 Days
70% 75% 70% 80% 80%
Average number of days from approved
invoice received to check issuance

4.71 4 4 4 4
Customers rating service as good or
excellent
71% N/A 75% N/A 75%
ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Number of Contracts Processed
224 236 260 260 260
Number of Vendor Invoices Paid
22,998 17,820 24,000 19,500 19,500
Number of Utility Bills Issued
92,310 87,221 92,500 92,250 92,500
Number of Regulatory Reports Submitted to
Appropriate Agencies
75 104 85 85 85
Number of Payroll Checks Paid
14,263 12,476 12,500 12,500 12,500
Budget Narrative and Summary
City of Milpitas • Finance 155
189
Item # 1.

Budget Summary
Finance Administration $2,165,988 $2,280,073 $2,117,398 $2,258,335 $140,937 6.7 % Finance Operations 3,225,002 1,925,866 1,813,552 1,909,066 95,514 5.3 % Fiscal Services-Utilities 71,072 1,298,345 1,945,141 2,173,975 228,834 11.8 % TOTAL $5,462,062 $5,504,284 $5,876,091 $6,341,378 $465,287 7.9 % DOLLARS BY FUNCTION 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %

PERSONNEL SERVICES
4111 Permanent Salaries $2,474,456 $2,735,468 $3,089,531 $3,347,674 $258,143 8.4 % 4112 Temporary Salaries 271,858 330,855 175,950 293,051 117,101 66.6 % 4113 Overtime 6,313 11,489 15,000 15,000 0 0.0 %
4121 Allowances 14,550 11,054 7,570 13,824 6,254 82.6 % 4124 Leave Cashout 91,890 140,492 0 0 0 0.0 %
4125 Accrued Leave 24,377 (3,578) 0 0 0 0.0 %
4131 PERS 993,247 972,688 1,072,407 1,057,711 (14,696) (1.4) % 4132 Group Insurance 409,796 417,624 550,575 579,979 29,404 5.3 % 4133 Medicare 41,494 47,389 47,459 53,005 5,546 11.7 % 4135 Worker's Compensation 2,047 9,389 17,146 18,296 1,150 6.7 % 4138 Deferred Comp-Employer 20,001 21,560 23,594 24,300 706 3.0 % 4139 PARS 3,086 1,762 1,178 2,075 897 76.1 %
4143 Charged to CIPs 0 0 (71,758) (100,000) (28,242) 39.4 % 4146 Short Term Disability 0 0 2,403 8,633 6,230 259.3 % 4161 Retiree Medical Reserve 142,516 26,556 25,225 28,880 3,655 14.5 % sub-total 4,495,631 4,722,748 4,956,280 5,342,428 386,148 7.8 %

SUPPLIES AND CONTRACTUAL SERVICES
4210 Department Allocations 19,166 18,450 18,075 10,599 (7,476) (41.4) % 4220 Supplies 71,434 36,832 130,008 130,300 292 0.2 %
4230 Services 833,882 715,412 690,095 785,414 95,319 13.8 % 4240 Repair & Maintenance 6,651 2,414 47,750 37,750 (10,000) (20.9) % 4500 Training, Travel, &
Memberships 9,409 8,428 33,885 34,885 1,000 3.0 %
sub-total 940,542 781,536 919,813 998,948 79,135 8.6 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Budget Narrative and Summary
156 City of Milpitas • Finance
190
Item # 1.

CAPITAL OUTLAY
4870 Machinery and Equipment 25,889 0 0 0 0 0.0 %
sub-total 25,889 0 0 0 0 0.0 %
TOTAL $5,462,062 $5,504,284 $5,876,093 $6,341,378 $465,281 7.9 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Staffing
POSITIONS BY FUNCTION 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Finance Administration* 10.00 9.00 8.00 9.00 1.00
Finance Operations 19.50 11.00 12.00 12.00 0.00
Fiscal Services-Utilities 0.00 9.50 8.50 8.50 0.00
TOTAL 29.50 29.50 28.50 29.50 1.00

Accountant 2.00 2.00 2.00 2.00 0.00
Accounting Technician I/II 6.00 6.00 6.00 7.00 1.00
Administrative Assistant 1.00 1.00 1.00 1.00 0.00
Assistant Finance Director 1.00 1.00 1.00 1.00 0.00
Budget Manager 1.00 1.00 1.00 1.00 0.00
Buyer 1.00 1.00 1.00 1.00 0.00
Customer Services Supervisor 1.00 1.00 1.00 1.00 0.00
Director of Finance 1.00 1.00 1.00 1.00 0.00
Finance Manager 1.00 1.00 1.00 1.00 0.00
Finance Technician 1.00 0.00 0.00 0.00 0.00
Financial Analyst 2.00 3.00 2.00 3.00 1.00
Fiscal Assistant I 0.00 0.00 0.00 0.00 0.00
Fiscal Assistant II 0.00 0.00 0.00 0.00 0.00
Junior Accountant 1.00 1.00 1.00 0.00 (1.00)
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Budget Narrative and Summary
City of Milpitas • Finance 157
191
Item # 1.

Payroll Specialist 2.00 2.00 2.00 2.00 0.00
Purchasing Agent 1.00 1.00 1.00 1.00 0.00
Senior Accountant 4.00 4.00 4.00 4.00 0.00
Senior Accounting Technician 1.00 1.00 1.00 1.00 0.00
Water Meter Reader II 2.50 2.50 2.50 2.50 0.00
Total Positions 29.50 29.50 28.50 29.50 1.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
*1.0 Financial Analyst is defunded.

Expenditures by Function
Finance Administration
$2,258,335

35.6%
Finance Operations
$1,909,066

30.1%
Fiscal Services-Utilities
$2,173,975

34.3%
Budget Narrative and Summary
158 City of Milpitas • Finance
192
Item # 1.

Budget Reconciliation
PRIOR YEAR BUDGET 28.50 $4,180,124 $1,695,967 $5,876,091 Adjustments to Costs of Ongoing Activities
Salary and Benefits 94,485 141,753 236,238
Non-Personnel Expenditure Alignment to
Historical Trend 8,796 8,796
Equipment Amortization (7,476) (7,476)
Contractual Services (Badger AMI Meters,
Gateway Cellular Backhaul Service, Invoice
Cloud, Cayenta, etc.)
57,196 57,196
Temporary Staff Cost 24,640 24,640
Adjustments to Costs of Ongoing Activities 0.00 103,281 216,113 319,394 Total FY2021-22 Base Budget 28.50 4,283,405 1,912,080 6,195,485 Service Level Changes
Risk Management Staffing 1.00 100,959 44,934 145,893
Total Service Level Changes 1.00 100,959 44,934 145,893 Total FY 2021-22 Budget 29.50 $4,384,364 $1,957,014 $6,341,378 Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Finance 159
193
Item # 1.

Service Level Changes
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
1 Risk Management Staffing 1.00 $100,959 $44,934 $145,893 This action funds 1 Financial Analyst in the risk management section. The Financial Analyst position will be tasked primarily with the development and operation of a robust citywide Risk Management Program including but not limited to analysis of historical claims data, identification of training and policies to minimize reoccurrence of historical claims experience in the future, and liaison with PLAN JPA for integration of risk management best practices into City operations and with Beazley Risk Management, the City's Cybersecurity Insurance provider, for continuously strengthening the City's cybersecurity practices.

Performance Results

The restoration of Financial Analyst position is expected to result in reduced claims occurrence and cost savings. Additionally, it will provide for the appropriate skill set to manage the City's Risk, Debt, and Investment programs.

Impact if funding is not approved
The minimally prudent oversight of the City's Risk, Debt, and Investment programs will fall to existing management positions; however, improvements to these programs will not take place.

Total Service Level Changes 1.00 $100,959 $44,934 $145,893 Budget Narrative and Summary
160 City of Milpitas • Finance
194
Item # 1.

Fire
Fire Chief: Brian Sherrard
Mission Statement Description
The Milpitas Fire Department is driven by the
vision to provide outstanding service to the
community through the core values of our mission
statement. "The preservation of life, property, and
the environment within the community is the
reason for our existence".

The core elements of the Fire Department’s
budget support growth within the organization to
ensure mission, succession planning for
organizational stability, and the ability to be flexible with emergency response in the community.

The Milpitas Fire Department is committed to
providing fast and effective emergency
response, fire prevention, emergency medical
services, disaster preparedness, public
education, community risk reduction, and other
related services to the Milpitas community. The
Fire Department is organized into six functions
as follows: Fire Administration; Operations
Division, EMS and Training, Office of Emergency
Management, Fire Prevention, and Fire
Prevention Administration.

Budget Narrative and Summary
City of Milpitas • Fire 161
195
Item # 1.

Services
• Fire Department Administration: Directs the
department in field operations, budget and fiscal
policy, administrative systems and procedures,
employee development/succession planning, and
labor and management relations. Fire
Administration is tasked with strategic planning
for the implementation of fire service best
practices and ensuring response readiness for
the community.
• Fire Department Operations Division: Responds
to emergency incidents involving fires, medical
emergencies, vehicle accidents, specialized
rescues, hazardous material releases, and other
risks affecting the health and welfare of the
community. Personnel staff six apparatus at four
stations strategically located for quick response
throughout the City. Specialized actions within the
division include urban search and rescue,
hazardous materials response, high density-high
rise housing response, and specialized response
to the transit area. The Operations Division is
focused on emergency response.
• Fire Department Training, Emergency Medical
Services, and Safety Division: Directs ongoing
firefighter training and annual mandatory
compliance training. Operates drill grounds and
training curricula to ensure readiness for all-risk
emergency response. Oversees compliance with
paramedic and emergency medical technician
licenses and certifications, State and local
reporting and quality assurance requirements,
and cooperative contracts with the ambulance
service provider. Ensures the readiness of the
patient transport ambulance. Provides safety
programs to reduce the firefighter injury rate and
risks.
• The Office of Emergency Management (OEM)
implements disaster preparedness and response
programs, outreach and education, and regional
collaboration planning. Ensures citywide disaster
readiness by performing Emergency Operations
Center training and maintenance, coordination of
the City Emergency operations Plan (EOP) and
continuity of operations plans (COOP),community
volunteer training, and care-and-shelter cache
maintenance. Provides risk reduction efforts for
the community by coordinating with allied
agencies and non-governmental organizations.
• Fire Prevention Division: The Fire Prevention
Division plans, organizes and implements all Fire
Department prevention and inspection programs,
including fire and arson investigations, vegetation
management, hazard abatement, code
enforcement, public fire safety education, plan
checking, and evaluation and development of
codes and ordinances. Provides fire cause and
origin investigations. Conducts inspections
related to fire code compliance for new
construction and high-risk occupancies e.g.,
hazardous material-occupancies.

Budget Narrative and Summary
162 City of Milpitas • Fire
196
Item # 1.

Fire Department
Budget Narrative and Summary
City of Milpitas • Fire 163
197
Item # 1.

Accomplishments

1. Enhanced employee safety, mental and
physical health/wellness programs P P

2. Completed implementation of forty-four new
Lexipol Fire Department policies P P P P P

3. Emergency Operations Plan completed and
adopted P P P P P P

4. Initiated succession planning gap analysis P P P

5. Implementation of Multi-Year Training and
Exercise Plan (MYTEP) P P P P P P

6. Worked collaboratively with internal and
external stakeholders to ensure Fire Station
#2 construction remains on schedule and on
budget

P P P P P P P

7. Developed methods to streamline plan
review and inspection processes in order to
address heavy workload demands during
Covid-19

P P P P P

8. Completed hiring and promotional processes
to fill key positions heavy workload P P P

9. All required staff completed ambulance
implementation task book and inspection
processes in order to address heavy
workload

P P P P P

10. Continued to support EOC and Covid-19,
monitoring, testing, and vaccination initiatives
heavy workload P P P P P
Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Budget Narrative and Summary
164 City of Milpitas • Fire
198
Item # 1.

Initiatives

1. Improve employee safety, mental and
physical health/wellness programs P P

2. Hire and train authorized personnel for
vacancies to ensure service levels are
maintained P P P

3. Complete training / succession plan for key
positions P P P

4. Complete Fire Station #2 construction and
place into operation P P P P P P P

5. Support Emergency Management initiatives
including MYTEP and EOP Annexes P P P P P

6. Deploy ambulance as allowed by
financial and operational limitations P P P P P

7. Develop remaining Lexipol Fire Department
policies P P

8. Complete migration to Intterra to enhance
Fire Department analytic/GIS capabilities P P P P P

9. Support the deployment of two new Type 5
apparatus and build of one new Type 1
apparatus P P

10. Enhance community engagement
opportunities through increased social media
presence P P
Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Budget Narrative and Summary
City of Milpitas • Fire 165
199
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Total response time (call to arrival) to
emergency calls (minutes)*
7:24 8:20 7:30 8:20 7:30
State mandated fire occupancy inspections
completed annually
1,138 1,228 100% 1,240 1,240
Effective Response Force (First Alarm) for
assembling a complete response on all
structure fires (minutes)
11:15 11:16 11:30 11:16 11:30
ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Fire service calls
5,253 5,390 5,400 6,000 5,500
Training Hours / Certifications to serve in
higher rank
13,556 /
23 8,755 /
20*
14,400 /
22 9,000 /
24*
14,400 /
24 Total Engine Company Inspections
2,084 0** 0** 0** 2,000
Total Plan Review / Inspections
1,644 /
7,592
1,884 /
2,949 100% 1,200 /
1,800** 100%
Public Education Events (attendees)
2,385 0* 2,500 2,000 4,000
Apparatus Response Summary (incidents)
7,822 7,736 8,000 8,600 8,500
*Number due to COVID-19 conditions/school closures
**Due to COVID-19 Engine Company Inspections not conducted Budget Narrative and Summary
166 City of Milpitas • Fire
200
Item # 1.

Budget Summary
EMS Transport Services $27,597 $27,309 $68,627 $106,355 $37,728 55.0 % Fire Administration 2,135,682 2,165,576 1,972,718 1,891,480 (81,238) (4.1) % Fire Prevention 1,733,256 2,027,931 2,914,138 2,651,914 (262,224) (9.0) % Fire Prevention Administration 1,386,571 1,319,488 744,956 1,054,974 310,018 41.6 % Office of Emergency
Management 259,221 246,993 244,243 252,173 7,930 3.2 % Operations Division 20,873,268 22,431,263 20,664,289 22,404,850 1,740,561 8.4 % TOTAL $26,415,595 $28,218,560 $26,608,971 $28,361,746 $1,752,775 6.6 % DOLLARS BY FUNCTION 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %

PERSONNEL SERVICES
4111 Permanent Salaries $11,922,767 $12,574,849 $12,712,106 $13,548,107 $836,001 6.6 % 4112 Temporary Salaries 150,369 265,038 25,000 25,000 0 0.0 % 4113 Overtime 1,744,426 2,029,606 1,615,257 1,615,257 0 0.0 % 4114 Reimbursable Overtime 104,903 1,241,700 0 0 0 0.0 % 4121 Allowances 71,136 72,175 73,512 77,964 4,452 6.1 % 4124 Leave Cashout 725,429 423,522 0 0 0 0.0 %
4131 PERS 5,959,271 6,312,594 6,515,130 6,973,640 458,510 7.0 % 4132 Group Insurance 1,731,056 1,799,022 1,920,625 2,116,273 195,648 10.2 % 4133 Medicare 206,218 231,591 186,285 198,266 11,981 6.4 % 4135 Worker's Compensation 240,337 610,866 560,732 624,882 64,150 11.4 % 4138 Deferred Comp-Employer 47,230 48,367 50,978 51,900 922 1.8 % 4139 PARS 0 0 924 699 (225) (24.4) %
4146 Short Term Disability 0 0 726 2,482 1,756 241.9 % 4161 Retiree Medical Reserve 568,505 135,380 135,052 148,592 13,540 10.0 % sub-total 23,471,647 25,744,710 23,796,327 25,047,062 1,250,735 5.3 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Budget Narrative and Summary
City of Milpitas • Fire 167
201
Item # 1.

SUPPLIES AND CONTRACTUAL SERVICES
4210 Department Allocations 1,660,850 1,542,518 1,524,064 1,485,915 (38,149) (2.5) % 4220 Supplies 643,959 338,808 599,100 623,460 24,360 4.1 % 4230 Services 181,204 263,205 456,405 522,866 66,461 14.6 % 4240 Repair & Maintenance 31 24,319 0 0 0 0.0 %
4500 Training, Travel, &
Memberships 127,920 106,009 233,075 236,075 3,000 1.3 % sub-total 2,613,964 2,274,859 2,812,644 2,868,316 55,672 2.0 %

CAPITAL OUTLAY
4850 Vehicles 269,488 0 0 220,000 220,000 0.0 %
4870 Machinery and Equipment 59,428 198,991 0 226,368 226,368 0.0 % 4920 Machinery, Tools & Equipment 1,068 0 0 0 0 0.0 %
sub-total 329,984 198,991 0 446,368 446,368 0.0 %
TOTAL $26,415,595 $28,218,560 $26,608,971 $28,361,746 $1,752,775 6.6 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Staffing
POSITIONS BY FUNCTION 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Fire Administration 6.00 6.00 6.00 7.00 1.00
Fire Prevention* 9.00 9.00 7.00 7.00 0.00
Fire Prevention Administration 4.00 4.00 4.00 4.00 0.00 Office of Emergency
Management 1.00 1.00 1.00 1.00 0.00
Operations Division 57.00 63.00 59.00 63.00 4.00
TOTAL 77.00 83.00 77.00 82.00 5.00
*1.0 Entry Level Fire Prevention Inspector defunded.

Administrative Analyst II 1.00 1.00 1.00 1.00 0.00
Assistant Fire Marshal 1.00 1.00 1.00 1.00 0.00
Chief Fire Enforcement Offcr 1.00 1.00 0.00 0.00 0.00
Deputy Fire Chief 2.00 2.00 2.00 2.00 0.00
Emergency Svcs Coordinator 1.00 1.00 1.00 1.00 0.00
Entry Level Fire Inspector 1.00 1.00 0.00 0.00 0.00
Executive Assistant 1.00 1.00 1.00 1.00 0.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Budget Narrative and Summary
168 City of Milpitas • Fire
202
Item # 1.

Fire Battalion Chief 3.00 3.00 3.00 3.00 0.00
Fire Battalion Chief-40 hr 1.00 1.00 1.00 1.00 0.00
Fire Captain 15.00 15.00 15.00 15.00 0.00
Fire Captain - 40 1.00 1.00 1.00 1.00 0.00
Fire Chief 1.00 1.00 1.00 1.00 0.00
Fire Engineer 6.00 6.00 6.00 8.00 2.00
Fire Engineer-Paramedic 12.00 12.00 12.00 10.00 (2.00)
Fire Prevention Inspector 4.00 4.00 4.00 4.00 0.00
Fire Protection Engineer 2.00 2.00 2.00 2.00 0.00
Firefighter 14.00 15.00 15.00 16.00 1.00
Firefighter/Paramedic 7.00 12.00 8.00 11.00 3.00
Hazardous Materials Inspector 2.00 2.00 2.00 2.00 0.00
Office Specialist 1.00 1.00 1.00 1.00 0.00
Senior Administrative Analyst 0.00 0.00 0.00 1.00 1.00
Total Positions 77.00 83.00 77.00 82.00 5.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Expenditures by Function
EMS Transport Services
$106,355

0.4%
Fire Prevention
$2,651,914

9.4%
Fire Prevention Administration
$1,054,974

3.7%
Office of Emergency Management
$252,173

0.9%
Operations Division
$22,404,850

79.0%
Fire Administration
$1,891,480

6.7%
Budget Narrative and Summary
City of Milpitas • Fire 169
203
Item # 1.

Budget Reconciliation
PRIOR YEAR BUDGET 77.00 $26,592,971 $16,000 $26,608,971 One-Time Prior Year Budget Adjustments
Restore 4.0 Firefighters/Paramedics (8/9/2021) 4.00 610,188 0 610,188 One-Time Prior Year Budget Adjustments 4.00 610,188 0 610,188 Adjustments to Costs of Ongoing Activities
Salary and Benefits 498,735 0 498,735
Lifepak Replacement 31,763 156,877 188,640
Equipment Replacement Amortization (38,149) 0 (38,149)
Increase in Supplies Cost 16,260 0 16,260
Increase in Contractual Costs (Lexipol, Hargis,
Image Trend, Stanford, etc.) 33,461 0 33,461
Adjustments to Costs of Ongoing Activities 0.00 542,070 156,877 698,947 Total FY2022-23 Base Budget 81.00 27,745,229 172,877 27,918,106 Service Level Changes
Interra Operations Modules Enhancement (One-
Time) 33,000 33,000
Lifepak for Ambulance Program (One-Time) 37,728 37,728
Fire Administrative Support Staffing (1 FTE) 1.00 152,913 152,913 Fire Fleet Enhancement (One-Time) 220,000 220,000
Total Service Level Changes 1.00 443,641 0 443,641
Total FY 2022-23 Budget 82.00 $28,188,870 $172,877 $28,361,747 Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
170 City of Milpitas • Fire
204
Item # 1.

Service Level Changes

1. Interra Operations Module Enhancement $33,000 $0 $33,000 This action funds the Regional Interra Operations, Preplan and Incident Management Milpitas bridge invoices for the current regional system agencies for one full calendar year. Interra is National Fire Protection Agency (NFPA) 950/951 Compliant, which covers the standard for data development and exchange for the Fire Service. This sole source is also based on interoperability with other governmental agencies within Santa Clara County (SCC) as Interra is the only provider of the regional Operations, Preplanning and Incident Management to Santa Clara County Fire as well as the City of Santa Clara Fire Department - no other system provides this functionality to the region and interoperability is required for sharing of information and reporting.

Performance Impact
Continued funding of this service will enhance inter-agency collaboration through information sharing and reporting as more Cities are planning to implement this system in the future. The County is expected to fund this service starting in FY2023-24.

Impact If Not Funded
If this action is not funded, the Department will not be able to use a system that allows interoperability with other partners in the County.

2. Lifepak for Ambulance Program $37,728 $0 $37,728
This action funds an additional Lifepak 15 Monitor and Defibrillator, primarily used for emergency response and resuscitation of patients and it will be placed on the new ambulance. Defibrillators are devices that restore a normal heartbeat by sending an electric pulse or shock to the heart. They are effective in preventing or correcting an arrhythmia and temporarily restoring cardiac function.

Performance Results:

This equipment is expected to save patients' lives and enhance emergency medical services provided by the Milpitas Fire Department.

Impact if funding is not approved
If this action is not funded, ambulance staff would not be adequately equipped to save lives in the event the patient needs resuscitation. It would negatively impact service level provided by the Department.

Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Fire 171
205
Item # 1.

3. Fire Administrative Support Staffing 1.00 $152,913 $0 $152,913 This action adds 1.0 Administrative Analyst to assist with multiple programs/projects across multiple divisions in the Fire Department. This position will relieve critical workload gaps and support critical business services in Fire Administration, Suppression, Training, EMS, and the Office of Emergency Management (OEM). Insufficient administrative capacity has significantly impacted the Fire Department’s ability to accomplish required operations, program management, personnel development, data analysis, and service enhancements to the City. The department currently has a single point of failure without redundant capacity for critical department level business processes and services, including accounts payable/receivable, payroll, human resources, contract administration, and policy management.

Additionally, there has been significant service enhancements and program development within the Fire Department over the past year which require additional analyst level capacity. The addition of an ambulance service delivery program as well as the expansion of the OEM program require the addition of additional workload capacity. This position will be able to manage projects currently being managed by Battalion Chiefs. The Battalion Chiefs are working a 48/96 shift schedule which creates difficulties coordinating and communicating with internal and external stakeholders which work traditional 40 hour schedule. The shift schedule causes delays in project implementation and coordination and ultimately creates frustration with the project managers in other departments supporting the Fire Department. Approximately 60-70% of the BC’s work time is spent coordinating/managing department level programs/projects and performing administrative tasks.

Performance Results:

Insufficient administrative support capacity has significantly impacted the fire department’s ability to efficiently and effectively accomplish their mission. Operations, program/projects, ambulance operations, and personnel management workloads have surpassed the current staff’s ability to be effective. The addition of this position will help alleviate the administrative burden on current staff.

Impact if funding is not approved
If this action is not funded, it has a negative impact on internal and external operations. The Battalion Chiefs will be required to continue working on multiple special projects as assigned instead of supervising, training, scheduling and evaluating firefighters. This has an immediate negative impact on operations as well as a long-term impact on employee development and succession planning.

Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
172 City of Milpitas • Fire
206
Item # 1.

4. Fire Fleet Enhancement $220,000 $0 $220,000
This action funds 2 command/deployment vehicles (model F250s) to replace part of an aging fleet. Fire department (Department) currently utilizes repurposed retired Police patrol vehicles. These repurposed vehicles are approaching 20 years of useful life and the vehicles are no longer reliable. This funding will start the gradual process of modernizing the Department's command vehicle fleet.

Performance Results:

The two command vehicles are expected to improve reliability of the command fleet when transporting personal protection equipment (PPE) and command staff to sites of emergency calls.

Impact if funding is not approved
If this action is not funded, Department will not be able to replace part of the aging fleet. Services can be negatively impacted.

Total Service Level Changes 1.00 $443,641 $0 $443,641
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Fire 173
207
Item # 1.

Budget Narrative and Summary
174 City of Milpitas • Fire
208
Item # 1.

Human Resources
HR Director: Jeannine Seher
Mission Statement Description
Through strategic partnerships and
collaboration, the Human Resources
Department recruits, develops, and
retains a high-performing, innovative and
diverse workforce and fosters a healthy,
safe, and productive work environment to
support individual potential and
organizational objectives.

The Human Resources (HR) Department is a centralized
full-service department that provides citywide services related to recruitment, benefits administration, safety (including a self-funded workers' compensation program
and DOT Drug and Alcohol Testing), employee relations
including compliance with State and Federal
employment laws, performance management, training,
and maintenance of personnel systems and files, and
labor relations, including negotiations and administration of labor agreements with the various employee groups.

Budget Narrative and Summary
City of Milpitas • Human Resources 175
209
Item # 1.

Services
• Recruitment - The HR Department is
committed to finding high-quality candidates
promptly. The HR department takes an
aggressive approach in identifying and
recruiting the most qualified candidates for City
positions.
• Benefits Administration - The HR Department
provides benefits administration to
approximately 437.5 (FTE) positions with an
excellent benefits package that includes
medical coverage through CalPERS Health.

Additional benefits include Dental, Vision, Life
Insurance, Flexible Spending Accounts, Long
Term Disability, Short Term Disability, Deferred
Compensation (457 or 401A plan depending
on bargaining unit), and the Employee
Assistance Program (EAP).
• Workers' Compensation - The City is self-
insured for workers' compensation contracted
through a Third Party Administrator (TPA). The
staff works closely with our TPA to ensure that
all injured employees receive proper care for
their work-related injuries and/or illnesses.
• Labor Relations - The HR Department
negotiates on behalf of the City and oversees
five separate bargaining units by administering,
implementing, and interpreting labor contracts
and assisting in the resolution of grievances.
• Employee Relations and Customer Service -
The HR Department treats all applicants,
employees, retirees, and residents with dignity
and respect. We strive to ensure equal
employment opportunities and a workplace
free of discrimination and harassment. We
assist managers and supervisors with
performance management matters. We
encourage positive employer-employee
relations and maintain a high level of service to
those we serve.
• Training - The HR Department manages and
maintains training programs including
mandatory training such as Harassment
Prevention Training and Professional
Development Opportunities in accordance with
the organization's needs.

Budget Narrative and Summary
176 City of Milpitas • Human Resources
210
Item # 1.

Human Resources Department
Budget Narrative and Summary
City of Milpitas • Human Resources 177
211
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Accomplishments

1. As of March 1st, updated and/or completed
meet and confer process on 10 policy
revisions P

2. Completed Training needs assessment and
provided 9 professional development training
courses via Zoom, including implicit bias
training
P

3. Maintained 85% compliance with mandated
sexual harassment prevention training
program P

4. Implemented Wellness Initiative; including
Worldwide Wellness challenge, Health Check
App to comply with COVID regulations; held
online health and benefits enrollment fair;
Offered CalPERS retirement sessions,
Mission Square/Financial Planning sessions,
offered Employee Assistance Program
sessions; and information in a monthly
newsletter
P

5. Conducted new hire orientations for 85
employees, processed 1034 personnel
transactions P

6. Processed 2003 applications P

7. Piloted LinkedIn Learning Portal in which 255
courses were completed within 35-day Pilot P

8. Transitioned to an online process for
transactional onboard functions, and
redesigned in-person orientation to focus on
City’s Vision/Mission, and Values
P

9. Completed assessment of employee physical
and background process P

10. Developed training on hiring and interviewing
best practices P
Budget Narrative and Summary
178 City of Milpitas • Human Resources
212
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Initiatives

1. Continued implementation of NEOGOV
Performance Management Software P

2. Continue to maintain compliance with Sexual
Harassment Prevention Training P

3. Review and Revise Personnel Rules and
City Policies P

4. Assess advantages and identify challenges
to moving to a paperless personnel file
system and recommend implementation
plan, if feasible
P

5. Complete Request for Information Process
on HRIS and Financial system to determine
feasibility for systems upgrade P

6. Develop and implement training on leave
administration, and ADA processes P

7. Revitalize Employee Mentorship Program P
Budget Narrative and Summary
City of Milpitas • Human Resources 179
213
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Average time to fill a vacancy (in days)
70 95 90 86 80
Percentage of recruitments completed within
established timelines*
40% 70% 75% 69% 75%
Percentage of employees attended
Harassment Prevention Training*
N/A 90% 100% 85% 100%
*Percentage of recruitments completed within established timelines was affected due to the difficulty recruiting during the COVID-19 Shelter in Place.

ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Number of positions filled
70 67 65 60 65
Number of workers compensation claims
processed
55 58 58 70 60
Number of transactions processed
3,820 3,000 3,500 1,034 1,000
Number of new hires onboarded
144 100 75 85 100
***Full Time Employees are all current on Harassment Prevention Training. The law changed to have Temporary Seasonal employees trained from January 2020 to January 2021.

Budget Narrative and Summary
180 City of Milpitas • Human Resources
214
Item # 1.

Budget Summary

PERSONNEL SERVICES
4111 Permanent Salaries $737,627 $704,304 $842,070 $878,386 $36,316 4.3 % 4112 Temporary Salaries 61,100 63,291 59,000 59,000 0 0.0 % 4113 Overtime 41 3,231 1,000 1,500 500 50.0 %
4121 Allowances 6,600 2,945 6,354 13,200 6,846 107.7 % 4124 Leave Cashout 13,755 74,673 0 0 0 0.0 %
4131 PERS 292,112 253,339 302,195 292,862 (9,333) (3.1) % 4132 Group Insurance 84,677 98,229 142,672 140,772 (1,900) (1.3) % 4133 Medicare 11,915 12,401 13,152 13,778 626 4.8 %
4135 Worker's Compensation 522 2,494 4,498 4,723 225 5.0 % 4138 Deferred Comp-Employer 6,146 4,890 6,006 6,300 294 4.9 % 4139 PARS 54 0 60 60 0 0.0 %
4146 Short Term Disability 0 0 557 2,100 1,543 277.0 % 4161 Retiree Medical Reserve 38,920 6,264 5,535 6,181 646 11.7 % sub-total 1,253,469 1,226,061 1,383,099 1,418,862 35,763 2.6 %

SUPPLIES AND CONTRACTUAL SERVICES
4200 Community Promotion,Grant/
Loan 208 0 8,500 8,500 0 0.0 %
4220 Supplies 4,725 679 7,000 7,000 0 0.0 %
4230 Services 527,323 551,456 395,608 433,958 38,350 9.7 % 4500 Training, Travel, &
Memberships 37,599 28,783 71,064 69,264 (1,800) (2.5) % sub-total 569,855 580,918 482,172 518,722 36,550 7.6 % TOTAL $1,823,324 $1,806,979 $1,865,271 $1,937,584 $72,313 3.9 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Budget Narrative and Summary
City of Milpitas • Human Resources 181
215
Item # 1.

Staffing
Employee Relations Officer 1.00 1.00 1.00 1.00 0.00
Human Resource Analyst II 1.00 1.00 1.00 1.00 0.00
Human Resources Analyst I 1.00 1.00 1.00 1.00 0.00
Human Resources Assistant 1.00 1.00 1.00 1.00 0.00
Human Resources Director 1.00 1.00 1.00 1.00 0.00
Human Resources Technician 2.00 2.00 1.00 2.00 1.00
Total Positions 7.00 7.00 6.00 7.00 1.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Expenditures by Category
Personnel Services
$1,418,862

73.2%
Supplies and Contractual Services
$518,722

26.8%
Budget Narrative and Summary
182 City of Milpitas • Human Resources
216
Item # 1.

Budget Reconciliation
PRIOR YEAR BUDGET 6.00 $1,865,271 $0 $1,865,271
One-Time Prior Year Budget Adjustments
Restored Human Resource Technician (1/1/2022) 1.00 61,134 61,134 One-Time Prior Year Budget Adjustments 1.00 61,134 — 61,134 Adjustments to Costs of Ongoing Activities
Salary and Benefits (23,821) 0 (23,821)
Adjustments to Costs of Ongoing Activities 0.00 (23,821) 0 (23,821) Total FY2021-22 Base Budget 7.00 $1,902,584 — $1,902,584 Service Level Changes
Labor Negotiations Survey 35,000 35,000
Total Service Level Changes 0 35,000 — 35,000
Total FY 2022-23 Budget 7.00 $1,937,584 $0 $1,937,584
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Human Resources 183
217
Item # 1.

Service Level Changes
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
1 Labor Negotiations Survey $35,000 $0 $35,000
This action funds professional services to conduct a survey of its comparative cities to benchmark classifications in Milpitas Professional and Technical Group (PROTECH) and Milpitas Employee Association (MEA). The contracts for these two bargaining units expire in June 2023, the survey is needed to prepare for labor negotiations.

Performance Results

This labor survey is expected to benchmark existing classifications in those two labor groups and make labor negotiations more efficient and effective.

Impact if funding is not approved
If this action is not funded, the City cannot establish a good benchmark for labor negotiations.

Total Service Level Changes $35,000 $0 $35,000
Budget Narrative and Summary
184 City of Milpitas • Human Resources
218
Item # 1.

Information Technology
IT Director: Daniel Nam
Mission Statement Description
The Information Technology
Department supports the mission of
the City by providing innovative,
reliable, secure, and cost-effective
technology services in the areas of
telecommunications, data
processing, desktop support,
Geographic Information System
(GIS) and technology systems
management.

This department provides automation planning, coordination of system procurement and implementation, administration of the City’s cyber security program, management of technology projects to fulfill customer- defined functional requirements, development and maintenance of the City's technical architecture and infrastructure, partnering with key product and service providers, ensuring customer satisfaction, providing automation support and training development, support of the City's web site, implementation and support of security access systems and all automated data systems.

Budget Narrative and Summary
City of Milpitas • Information Technology 185
219
Item # 1.

Services
• IT Strategic Planning – Administer and
continuously monitor multi-year technology
initiatives to ensure the smart and effective use of
technology across the City’s departments and
aligned with the City’s overall mission.
• IT Project Management – Provide effective
project management services for technology
projects of varying scope from short-term
department projects to multi-year
implementations that bring new solutions to users
across the organization.
• Technology Contract Management – Provide
management and coordination of technology
system contracts.
• Development Services – Support the
development of highly effective, secure, and
reliable customized software and technology
solutions to enhance service delivery.
• Servers and Application Support – Provide
management and support of the City’s
datacenter. This includes the management of
City’s computer and storage resources, public-
safety systems, primary computer directory
services, e-mail, teleconference, system
automation, administration of cloud technologies,
system implementation and integrations, security
and disaster recovery.
• Infrastructure Support – Develop and support the
technology systems architecture and
infrastructure, including implementation and
support of City’s Internet connectivity, IP
telephone systems, mobile phones and data
services, metro-area fiber optic network and
wireless enterprise network.
• Public Information – Develop and support the
City’s website and provide support for virtual and
hybrid public meetings.
• Security Access and Control – Enhance safety
and protect the City’s assets by supporting the
city facility security access and control system.
• GIS – Provide various GIS services and enable
coordination between various departments
across the organization. This service includes
software development, data acquisition, aerial
imagery, and map services. The data collected
serves various enterprise systems including the
Computer Aided Dispatch System, Computerized
Maintenance Management System, Land
Records & Permitting Application, and systems
used by the Community Development Services
CSA.
• Helpdesk – Provide centralized support channel
for City staff. Helpdesk service provides technical
resources, including software and hardware
troubleshooting assistance, as well as managing
the City’s technology assets. IT department
procures, implements and maintains all
technology resources used for the City’s
operation, including 700 computers, 400 mobile
devices and 100 printers.

Budget Narrative and Summary
186 City of Milpitas • Information Technology
220
Item # 1.

Information Technology Department
Budget Narrative and Summary
City of Milpitas • Information Technology 187
221
Item # 1.

Accomplishments

1. Network Threat Detection System
Implementation P P P P P P P

2. Hybrid meeting support and technology
implementation P P P P P P P

3. City Hall Technology Refresh P

4. Asset Management System Implementation P

5. Office 365 Enhancement P P P P P P P
Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit

1. Police Records Management System P P

2. Cybersecurity Training Program P P P P P P P

3. City Website Redesign P P P P P P P

4. PRA Management System P

5. Development Services Software
Implementation P P P P P
Initiatives
Budget Narrative and Summary
188 City of Milpitas • Information Technology
222
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
City Council meetings supported
100% 100% 100% 100% 100%
Network Availability*

99.99% 99.93% 99.99% 100% 99.99%
Critical Server Availability*

99.99% 99.99% 99.99% 99.99% 99.99%
Website Availability*

99.99% 99.54% 99.99% 98% 99.99%
Customer surveys received with
a score of 4 or better (out of 5)
96% 96% 97% 96% 97%
ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Help Desk tickets closed
3,330 4,153 4,000 5,053 5,000
Website visitors
1,900,000 216,000** 222,000 608,000 600,000
GIS Asset updates
44,097 48,401 32,000 43,000 40,000
Number of City Council and Planning
Committee meetings supported
52 52
Physical servers converted to virtual servers
90% 91% 98% 97% 98%
*Scheduled down time for maintenance is excluded
**Previously included bots and other countries. FY21 and forward counts actual visitors.

Budget Narrative and Summary
City of Milpitas • Information Technology 189
223
Item # 1.

Budget Summary

PERSONNEL SERVICES
4111 Permanent Salaries $1,066,571 $1,547,673 $1,637,205 $1,803,077 $165,872 10.1 % 4112 Temporary Salaries 8,980 0 35,000 35,000 0 0.0 %
4113 Overtime 1,720 2,032 0 0 0 0.0 %
4121 Allowances 6,694 3,554 5,899 6,600 701 11.9 %
4124 Leave Cashout 63,169 91,886 0 0 0 0.0 %
4131 PERS 420,272 517,260 551,232 551,929 697 0.1 %
4132 Group Insurance 144,559 216,307 246,565 293,184 46,619 18.9 % 4133 Medicare 16,513 23,896 24,333 26,749 2,416 9.9 %
4135 Worker's Compensation 317 4,623 8,185 9,120 935 11.4 % 4138 Deferred Comp-Employer 6,974 10,209 10,861 11,700 839 7.7 % 4139 PARS 145 (11) 526 526 0 0.0 %
4146 Short Term Disability 0 0 1,003 3,900 2,897 288.8 % 4161 Retiree Medical Reserve 68,705 13,184 11,693 14,030 2,337 20.0 % sub-total 1,804,619 2,431,362 2,532,502 2,755,815 223,313 8.8 %

SUPPLIES AND CONTRACTUAL SERVICES
4210 Department Allocations 6,841 1,966 1,782 1,704 (78) (4.4) % 4220 Supplies 34,863 16,287 10,000 11,000 1,000 10.0 % 4230 Services 163,291 117,608 15,000 15,000 0 0.0 %
4240 Repair & Maintenance 731,481 1,031,959 1,107,890 1,268,937 161,047 14.5 % 4410 Communications 249,148 293,006 265,000 302,000 37,000 14.0 % 4500 Training, Travel, &
Memberships 19,341 9,610 61,500 73,500 12,000 19.5 %
sub-total 1,204,965 1,470,436 1,461,172 1,672,141 210,969 14.4 %

CAPITAL OUTLAY
4870 Machinery and Equipment 0 71,395 0 0 0 0.0 %
4920 Machinery, Tools & Equipment 38,610 209,452 250,000 250,000 0 0.0 % sub-total 38,610 280,847 250,000 250,000 0 0.0 %
TOTAL $3,048,194 $4,182,645 $4,243,674 $4,677,957 $434,283 10.2 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Budget Narrative and Summary
190 City of Milpitas • Information Technology
224
Item # 1.

Staffing
Deputy IT Director 0.00 0.00 0.00 1.00 1.00
GIS Technician 0.00 1.00 1.00 1.00 0.00
Information System Analyst 3.00 3.00 2.00 3.00 1.00
Information Technology
Director 1.00 1.00 1.00 1.00 0.00
Information Technology
Manager 3.00 3.00 3.00 2.00 (1.00)
Information Technology
Technician 2.00 2.00 2.00 2.00 0.00
Office Specialist 1.00 1.00 1.00 1.00 0.00
Sr. Information Analyst/Dev 1.00 1.00 1.00 1.00 0.00
Video Media Specialist 1.00 1.00 1.00 1.00 0.00
Total Positions 12.00 13.00 12.00 13.00 1.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Expenditures by Category
Personnel Services
$2,755,815

58.9%
Supplies and Contractual Services
$1,672,141

35.7%
Capital Outlay
$250,000

5.3%
Budget Narrative and Summary
City of Milpitas • Information Technology 191
225
Item # 1.

Budget Reconciliation
PRIOR YEAR BUDGET 12.00 $3,659,099 $584,576 $4,243,675
One-Time Prior Year Budget Adjustments
Restore Information System Analyst (7/1/2022) 1.00 197,089 197,089 One-Time Prior Year Budget Adjustments 1.00 197,089 0 197,089 Adjustments to Costs of Ongoing Activities
Salary and Benefits (3,964) 1,436 (2,528)
Police RMS Maintenance Cost 86,000 86,000
Vectra Cybersecurity Cost 40,000 40,000
Non-Personnel Expenditure Alignment to
Historical Trend 1,014 1,014
Equipment Amortization (78) (78)
Adjustments to Costs of Ongoing Activities 0.00 122,972 1,436 124,408 Total FY2022-23 Base Budget 13.00 3,979,160 586,012 4,565,172 Service Level Changes
Reclass Information Technology Manager to
Deputy Director of Information Technology 28,752 28,752 Additional Cellular Phones for Staff 37,000 37,000
PRA (Public Records Act) Request Management
Software 9,500 9,500
Microsoft Office 365 Service Enhancement 37,533 37,533
Total Service Level Changes 0.00 112,785 0 112,785
Total FY 2022-23 Budget 13.00 $4,091,945 $586,012 $4,677,957 Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
192 City of Milpitas • Information Technology
226
Item # 1.

Service Level Changes
1 Reclassification of Information
Technology Manager $28,752 $0 $28,752
This action funds the reclassification of Information Technology Manager to Deputy Director of Information Technology. The Information Technology (IT) Department has grown from 10 positions to 13 positions since FY 17-18. This growth reflects the increased technology needs of the City and the critical role IT plays in supporting all departments to deliver services to the community in an efficient and effective manner. Currently, the IT Director directly oversees 50% of his staff. So as to more effectively distribute the work and supervisory responsibilities, a reclassification of an existing vacant IT Manager (1 of 3 IT Managers) position is proposed.

Performance Results

The proposed reclassification will provide balanced supervisory oversight of each IT division. With the proposed re-classification, the organizational structure will be able to serve the needs of the department and the City more efficiently and will enable the IT Director to focus more on strategy, vision, and City priorities. The reclassification will also be more closely aligned with the organizational structure in other City departments, allowing for better succession planning.

Impact if funding is not approved
If this action is not funded, the Department will need to fill the current vacant IT Manager position and may not be able to change the structure for several years. Although some limited re-organization may be feasible without the reclassification, the department will not be well-positioned for succession planning nor will it be able to maximize efficiency and workload distribution. The department will also not be aligned with the organizational structure of other City departments.

Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Information Technology 193
227
Item # 1.
2 Enhanced Cellular Service $37,000 $0 $37,000
This action funds additional cellphones to deploy to the Milpitas Police Department. Police Department continuously performs market research for technology products that will improve efficiency and help enhance the law enforcement services delivered to our community. Many products are becoming increasingly mobile and web-centric, and to enable officers’ remote access to these services, the Police Department is looking to deploy approximately 70 smartphones to its officers. The City procured late- model smartphones at discounted pricing which was covered by the IT operating budget. The cellular service cost associated with the citywide cellular services is also in IT’s operating budget. To cover the substantial increase in the service cost for the newly procured devices, funding is requested for the increased annual service cost of approximately $37,000.

Performance Results

Continuing research effort resulted in the implementation of several key technology products that directly impact the productivity of our officers and response times. This includes web-based reports, Record Management System, Electronic Citation Software, Body-Worn Cameras, License Plate Readers, Photo Evidence Collection, and more. Deploying mobile phones to the officers will enable remote access to these systems and other city-wide services such as electronic timesheet, email access, remote meeting and collaboration tools. Verizon Wireless has been the cellular service of choice for over 15 years. The staff has recently completed the paperwork and agreements necessary to benefit from the discounted pricing plans specific to law enforcement and government organizations.

Impact if funding is not approved
If this action is not funded, the Police Department cannot deploy the smartphones and the latest law enforcement technology products will not be available to the officers in the field.

Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
194 City of Milpitas • Information Technology
228
Item # 1.
3 Office 365 Feature Enhancement $37,533 $0 $37,533
This action funds additional features in Office 365 to improve connectivity and efficiency. On January 25, 2019, Council approved the purchase of Office 365 subscription for a 3-year period. Office 365 subscription includes a suite of essential Office software, as well as the City’s email, online collaboration, communication, and virtual meeting services. IT staff has evaluated various add-on features that will improve productivity and efficiency and determined that the following three new features be added for the next renewal period. The Audio Conferencing feature allows meeting attendees to use traditional phones to dial into the meeting. This allows in-field staff with unreliable or no internet connectivity, and staff without a smartphone to join virtual meetings by dialing a number assigned to a meeting. Mobile Device Management (MDM) feature allows IT staff a centralized oversight of mobile devices, including software license assignments, device configurations, and critical security features necessary to deploy mobile devices for law enforcement. Azure AD Premium is an advanced set of tools that will help IT Staff to better manage the interface between Microsoft services and the City systems. This feature will greatly impact the management efficiency for essential tasks such as remote management of Multi-factor Authentication (MFA).

Performance Result

The added conferencing features directly impact the ability of a certain group of the workforce without smartphones to join virtual meetings. Without centralized and remote management features such as MDM, the IT staff resources required to manage and support the increasing number of mobile devices will be significantly higher. IT will not have the ability to remote lock or wipe lost devices which is critical to maintaining the security of the City’s data. Without MDM, the Police Department will not be able to meet the compliance requirements for the use of mobile devices for law enforcement purposes.

Impact if funding is not approved
If this action is not funded, the City cannot benefit from the various essential features, such as improved security of the mobile data access, better utilization of the latest cloud services, meeting compliance requirements of the California Department of Justice for law enforcement use of the mobile devices. Employees in the field without smartphones will not be able to join the virtual meetings without being in front of a computer, and IT Department cannot streamline the security and asset management of mobile devices.

Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Information Technology 195
229
Item # 1.
4 Public Records Act Management
Software $9,500 $0 $9,500
This action funds a software platform to manage requests related to the Public Records Act (PRA). As part of the budget strategy in July of 2021, the City Clerk's office took over the PRA request program from the City’s Attorney’s office. The California PRA was created to foster transparency, accountability, and greater public access. When a PRA is received, the City must provide all requested records unless there is a legal basis not to do so. Request for public records can be very broad and the legal exceptions to producing those are very limited. Many requests ask for an expansive range of communications that must be identified by individual employees and then reviewed in detail for responsiveness. As a result of the volume and complexity of these requests, the Clerk’s Office has identified the need to implement an automated Public Records Request system. The automated system will increase efficiency in tracking and managing the workflow of requests from receipt to production. It will centralize all requests allowing staff to respond easier and take action. The system also includes functions that help staff review responsive documents for privileged or confidential information, resulting in a cost savings of staff time and making responsive documents available to the requestor more quickly.

Performance Result

A new records request system will provide a centralized, secure public records portal allowing residents to track their requests online and standardizes workflows for city employees. The functions of this system will make it easy to share information, improve the intake of requests, and improve production timelines.

The new system will also provide an accurate and efficient process to securely review and release records, protecting personally identifiable information (PII) and other sensitive data.

Impact if funding is not approved
If this action is not funded, staff will continue to manage the limited resources available by manually tracking requests, due dates, records, and responses on spreadsheets. Staff will also continue to review and redaction each individual responsive document for privileged or confidential information which can total into the thousands. If this action is not approved and the PRA requests continue to increase in volume and complexity the result will be longer production timelines and a larger workload for staff.

Total Service Level Changes $112,785 $0 $112,785
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
196 City of Milpitas • Information Technology
230
Item # 1.

Planning
Planning Director: Ned Thomas, AICP
Mission Statement Description
The Planning Department develops and
implements policies to guide the
physical and economic development of
the City. We seek to create and
maintain a high quality of life for
Milpitas residents through enforcement
of land use, architectural design, and
environmental regulations. We also
strive to provide excellent customer
service in support of an efficient
development review process and fair
and inclusive community engagement
activities.

The Planning Department prepares, maintains, and implements the City's General Plan, associated Specific Plans, and other planning and policy documents to positively influence the physical development of the community. Department staff assist residents, businesses, designers, developers, and architects to understand and follow the City's policies and regulations for development, including the General Plan, two Specific Plans, and the Zoning Ordinance. The Department collaborates with other City departments to administer various policies and regulations related to the physical development of the City, including the California Environmental Quality Act (CEQA). The Department provides professional and administrative support to the Planning Commission and promotes informed decision-making by conducting analysis, making findings and recommendations, and facilitating community and neighborhood meetings.

Budget Narrative and Summary
City of Milpitas • Planning 197
231
Item # 1.

Services
• Prepares, maintains, and implements the City's
General Plan and associated Specific Plans.
• Conducts research, prepares long-range planning
documents, and assists other departments in
preparing special-purpose long-range plans.
• Administers the City's Zoning Ordinance and
collaborates with other departments to administer
other development policies and regulations,
including the California Environmental Quality Act
(CEQA).
• Performs and coordinates review of land
development applications and provides
information to the public regarding land
development regulations and processes.
• Assists developers in obtaining planning
entitlements and coordinates the development
review process from conceptual design and
preapplication consultation to application submittal
and formal review.
• Implements the Milpitas Metro Specific Plan and
Main Street/Gateway Specific Plan and
coordinates with other departments to ensure
timely review of development proposals.
• Provides and updates planning permit fees,
submittal requirements, checklists, design
guidelines, and publications to support a
streamlined permit application and development
review process.
• Reviews building plans for conformance with
zoning regulations and conditions of approval.
• Administers the City’s short-term rental program.
• Provides staff support to the Planning Commission
and other planning-related advisory groups.
• Coordinates with the City Manager's office in
working with outside agencies, regional
organizations, and local businesses.
• Coordinates with the City Manager's office in
working with outside agencies, regional
organizations, and local businesses.
• Coordinates with outside agencies on regional
planning, transportation, and environmental
issues.
• Maintains City demographics and geographic
based information.
• Promotes the City of Milpitas as a vibrant
community to live, work, shop, learn, and play.

Budget Narrative and Summary
198 City of Milpitas • Planning
232
Item # 1.

Planning Department

Budget Narrative and Summary
City of Milpitas • Planning 199
233
Item # 1.

Accomplishments

1. Continued work on the Milpitas Metro
Specific Plan P P P P P

2. Initiated work on the Gateway/Main St.

Specific Plan, including three Community
Conversations for Community Engagement P P P

3. Prepared and published Development
Review Handbook P P P

4. Prepared and published an Accessory
Dwelling Units (ADU) Toolkit and online
resources to promote ADUs P P

5. Accepted $1.2 million grant from VTA and
partnered with RideCo to develop and
implement a local on-demand transit
program

P P P P

6. Developed a set of Objective Design
Standards to streamline the review process
for multi-family residential and and mixed-
use development
P P

7. Initiated a grant-funded project to create
Housing Opportunity Zones to streamline
residential development at specific sites
across the City.

P P

8. Partnered with Symbium to pilot innovative
online tools that empowers residents and
business owners to access and understand
zoning information.

P P
Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Budget Narrative and Summary
200 City of Milpitas • Planning
234
Item # 1.

Initiatives

1. Complete the Milpitas Metro Specific Plan
and Environmental Impact Report (EIR) P P P P P

2. Initiate an update of the Metro Area
Development Impact Fee P P P P P

3. Complete the Gateway/Main St. Specific
Plan and EIR P P P P P

4. Initiate a comprehensive update of the City’s
Zoning Ordinance P P P P

5. Implement and evaluate the Milpitas
OnDemand local transit program P P P P

6. Develop and implement a citywide policy for
micro-mobility P P P

7. Support implementation of the Economic
Development Strategy P P

8. Continue to support efforts to revitalize Main
Street. P P P P P

9. Adopt ad hoc Zoning Ordinance
Amendments to regulate food trucks, building
heights, and personal services P
Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Budget Narrative and Summary
City of Milpitas • Planning 201
235
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Administrative Approvals/Permits:
1) First review completed within 21
calendar days
N/A 80% 90% 70% 90%
2) Average cumulative staff review
time
N/A 9 calendar
days
7 calendar
days
7 calendar
days
7 calendar
days
3) Average total processing time from
complete application to disposition
N/A 9 calendar
days
14 calendar
days
10 calendar
days
10 calendar
days
Zoning Administrator Applications:
1) First review completed within 30
calendar days
N/A 100% 90% 90% 90%
2) Average cumulative staff review
time
N/A 49 calendar
days
45 calendar
days
70 calendar
days
45 calendar
days
3) Average total processing time from
complete application to disposition
N/A 59 calendar
days
60 calendar
days
75 calendar
days
60 calendar
days
Planning Commission Applications:
1) First review completed within 45
calendar days
N/A 100% 90% 90% 90%
2) Average cumulative staff review
time
N/A 314 calendar
days
75 calendar
days
75 calendar
days
75 calendar
days
3) Average total processing time from
complete application to disposition:
a. Projects with Exemption
b. Projects with Mitigated
Negative Declaration
c. Projects with Environmental
Impact Report
N/A
300
calendar
days
260 days
213 days
276 days
150 days
180 days
360 days
280
calendar
days
180 days
180 days
677 days
75 calendar
days
150 days
180 days
360 days
ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 21-22
Target
Total planning permits/zoning
approvals issued
N/A 332 400 350 400
Total planning applications with public
hearing
N/A 52 60 45 60
Total long-range planning projects
(policy and zoning updates) in
progress or completed
N/A 9 9 9 9
Budget Narrative and Summary
202 City of Milpitas • Planning
236
Item # 1.

Budget Summary
Long Range Planning $43,689 $229,187 $238,961 $265,713 $26,752 11.2 % Planning 2,072,244 2,064,077 1,743,197 2,085,775 342,578 19.7 % TOTAL $2,115,933 $2,293,264 $1,982,158 $2,351,488 $369,330 18.6 % DOLLARS BY FUNCTION 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %

PERSONNEL SERVICES
4111 Permanent Salaries $1,265,110 $1,356,667 $1,317,224 $1,385,487 $68,263 5.2 % 4112 Temporary Salaries 12,612 2,268 105,600 79,557 (26,043) (24.7) % 4113 Overtime 1,148 (230) 12,000 12,000 0 0.0 %
4121 Allowances 6,600 3,553 5,666 6,600 934 16.5 %
4124 Leave Cashout 14,373 40,454 0 0 0 0.0 %
4131 PERS 470,142 423,608 409,081 419,331 10,250 2.5 % 4132 Group Insurance 170,364 184,316 159,458 273,109 113,651 71.3 % 4133 Medicare 18,810 20,812 19,182 22,936 3,754 19.6 % 4138 Deferred Comp-Employer 8,100 7,405 7,883 9,000 1,117 14.2 % 4139 PARS 167 35 0 1,584 1,584 0.0 %
4141 Adjustments-Payroll 0 0 0 0 0 0.0 %
4146 Short Term Disability 0 0 721 2,782 2,061 285.9 % 4161 Retiree Medical Reserve 63,947 11,137 9,793 11,435 1,642 16.8 % sub-total 2,037,946 2,057,380 2,052,958 2,292,288 239,330 11.7 %

SUPPLIES AND CONTRACTUAL SERVICES
4210 Department Allocations 2,473 0 0 0 0 0.0 %
4220 Supplies 3,915 1,720 6,000 12,000 6,000 100.0 %
4230 Services 52,582 219,202 15,000 25,000 10,000 66.7 % 4500 Training, Travel, &
Memberships 19,017 14,962 13,800 22,200 8,400 60.9 %
sub-total 77,987 235,884 34,800 59,200 24,400 70.1 %
TOTAL $2,115,933 $2,293,264 $2,087,758 $2,351,488 $263,730 12.6 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Budget Narrative and Summary
City of Milpitas • Planning 203
237
Item # 1.

Staffing
POSITIONS BY FUNCTION 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Planning 9.00 9.00 8.00 8.00 0.00
Long Range Planning 1.00 1.00 1.00 1.00 0.00
TOTAL 10.00 10.00 9.00 9.00 0.00
*1.0 Planning Manager has been eliminated.

Administrative Assistant 1.00 1.00 1.00 1.00 0.00
Assistant Planner 2.00 2.00 0.00 0.00 0.00
Associate Planner 2.00 2.00 3.00 3.00 0.00
Junior Planner 0.00 0.00 1.00 0.00 (1.00)
Planning Technician 0.00 0.00 0.00 1.00 1.00
Planning Director 1.00 1.00 1.00 1.00 0.00
Planning Manager 1.00 1.00 0.00 0.00 0.00
Principal Planner 1.00 1.00 1.00 1.00 0.00
Secretary 0.00 0.00 0.00 0.00 0.00
Senior Planner 2.00 2.00 2.00 2.00 0.00
Total Positions 10.00 10.00 9.00 9.00 0.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Expenditures by Function
Long Range Planning
$265,713

11.3% Planning
$2,085,775

88.7%
Budget Narrative and Summary
204 City of Milpitas • Planning
238
Item # 1.

Budget Reconciliation
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
PRIOR YEAR BUDGET 9.00 $1,712,347 $269,811 $1,982,158
One-Time Prior Year Budget Adjustments
Non-Personnel Expenditure Reduction 14,400 14,400
One-Time Prior Year Budget Adjustments 0.00 14,400 0 14,400 Adjustments to Costs of Ongoing Activities
Salary and Benefits 118,918 60,721 179,639
Adjustments to Costs of Ongoing Activities 0.00 118,918 60,721 179,639 Total FY2022-23 Base Budget 9.00 1,845,665 330,532 2,176,197 Service Level Changes
Special Projects Associate for Zoning Ordinance
Update 93,143 93,143
Part-time Staff Assistant 72,147 72,147
Granicus Annual Renewal Subscription Fees 10,000 10,000 Total Service Level Changes 0.00 82,147 93,143 175,290
Total FY 2022-23 Budget 9.00 $1,927,812 $423,675 $2,351,487 .

Budget Narrative and Summary
City of Milpitas • Planning 205
239
Item # 1.

Service Level Changes

1. Part-time Staff Assistant $72,147 $0 $72,147
This action funds a part-time Staff Assistant for one fiscal year to mitigate increased administrative workload. During the closure of City Hall due to the COVID-19 pandemic, the department experienced a significant increase in incoming phone calls and email inquiries from residents, developers, and business owners. Many customers, either for convenience or to avoid contact with other people, want to continue conducting business remotely rather than coming to City Hall. This has resulted in significant added workload and increased response times because of the need to juggle increased phone calls and email messages with other work such as meetings, staff report preparation, and project coordination.

Performance Impact
This position will support the entire department by alleviating administrative burden and increasing capacity in other function areas. Consequently, operations will be more efficient and effective. Other staff can focus more time on development review projects and staff reports, conduct research on more complex issues, and administer various special projects as outlined above.

Mitigation
If this action is not funded, administrative burden will continue to fall on current staff and capacity to focus on other function areas will be reduced.

2. Special Project Associate for Zoning
Ordinance Update $0 $93,142 $93,142
This action funds a limited term Senior Planner to help with the update of the Zoning Ordinance to align with the new General Plan adopted in March 2021. The Zoning Ordinance is the primary implementation tool of the General Plan, impacting housing, transportation, economic development, public safety and general well-being of the residents in this community. State Law requires land use classifications and regulations in the Zoning Ordinance to be consistent with the Land Use designations established in the General Plan. Currently, the City's Zoning Ordinance is not consistent with the new General Plan. Parts of the City's current Zoning Ordinance date back to 1955, and the document has been amended multiple times over the past several decades and is need of a comprehensive update.

Performance Impact
Funding for a Comprehensive Zoning Ordinance Update is included in the City's CIP (Project No. 3460).

Consultants will be hired to advise the City, conduct public outreach, and prepare the comprehensive update. The limited term Senior Planner will help prepare an RFP for consultants and manage the overall project from kick-off to completion, including the required environmental review under CEQA.

Mitigation
If this action is not funded, then an Associate Planner has to be promoted to limited term Senior Planner for three years and that position will be reassigned to work on long-range and special projects under the supervision of the Principal Planner. This would require other adjustments to staffing in the department such as creating and funding a part-time staff person to cover phones and email during peak hours.

Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
206 City of Milpitas • Planning
240
Item # 1.

3. Granicus Annual Renewal Subscription
Fees $10,000 $0 $10,000
This action funds the City’s annual subscription renewal fee with Granicus Host Compliance to identify and monitor STRs operating in Milpitas. On March 3, 2020, the Milpitas City Council adopted Ordinance

38.835 to regulate short-term rentals (STRs) within the City of Milpitas. The new Ordinance established a Short-term Rental program that includes a fee as well as a clear and simple process for new and existing STRs to come into conformance with the new operating standards, registration requirements, and record- keeping obligations. The City will continue its contract with Granicus Host Compliance to identify and monitor STRs operating in Milpitas. Based on the information provided, the Planning Department will continue to notify non-compliant STR operators of their obligations under the City’s STR Ordinance.

Performance Impact
Renewing the subscription will help the City to continue identifying non-compliant STRs to improve compliance and collect outstanding STR fees owed to the City. Currently, 31 non-compliant STRs have been identified, which translates into approximately $19,344 in outstanding revenue that will be used to support the STR pilot program. Granicus has also identified 38 additional STRs within Milpitas, for which it has the general locations and images of the rental but has not yet matched with an APN or mailing address. These additional 38 STRs can potentially generate an estimated $23,712 in fee revenues for the City.

Mitigation
If this action is not funded, the subscription will be terminated and the services the department relies on will no longer be available. Compliance will most likely decrease, resulting in lower STR fee revenues for the City.

Total Service Level Changes $82,147 $93,142 $175,289
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Planning 207
241
Item # 1.

Budget Narrative and Summary
208 City of Milpitas • Planning
242
Item # 1.

Police
Police Chief: Jared Hernandez
Mission Statement Description
The Milpitas Police Department is
committed to the protection of lives and
property by working with our community
and providing professional and
responsive police services.

This department provides 24 hours-a-day,
365 days-a-year policing services to the
City, keeps the peace, and prevents &
controls crime. The Department's nine
functions include: Administration, Patrol
Services, Traffic Safety Unit, Crossing
Guards, Police Community Relations Unit,
Investigations Unit, Communications Unit,
Records Unit, and Personnel & Training.

Budget Narrative and Summary
City of Milpitas • Police 209
243
Item # 1.

Services
• Provides 24 hours-a-day, 365 days-a-year
response to calls for police services. Safeguards
the community from crime through deterrence,
prevention, and arrest of offenders. Preserves the
public peace, protects life & property, and
appropriately enforces laws & ordinances.
• Investigates automobile thefts, hit-and- runs
collisions, and traffic accidents; conducts accident
reconstruction for major injury & fatal collisions;
provides traffic control at major events and
enforces traffic laws.
• Manages the Crossing Guard program, which
staffs critical intersections within the City to ensure the safety of children walking to and from schools.
• Facilitates PAL activities & programs and conducts
Neighborhood Watch, Police Explorer, Citizen
Volunteer, and other crime prevention & education
programs.
• Works closely with the school district and county
agencies to divert first time offenders from the
juvenile justice system through parent counseling
and other innovative programs. The School
Resource Officer in the Police Community
Relations Unit serves Milpitas High School and
Calaveras Hills High School.
• Provides follow-up investigation of crimes against
persons, fraud, high technology crimes, missing
persons, and property crimes.
-
• Conducts gang prevention, intervention, and
investigation programs; tracks sex registrants; and
conducts proactive narcotic investigations.
• Provides 24 hours-a-day, 365 days-a-year 9-1-1
emergency telephone answering and emergency
dispatching for the police department, fire
department, and other City Departments.
• Provides public counter service, filing of criminal
complaints, and evidence management.

Processes, maintains, and distributes police
reports and fire reports, prepares statistical data
required by law, and responds to report requests
and telephone inquiries from citizens and other
authorized entities.
• Maintains a Community Service Officer (CSO)
Program to expand services. The CSOs have
absorbed many non-hazardous tasks previously
assigned to police officers and police officers will
remain dedicated to higher priority items. The
CSOs provide the community with responsive
services at a cost far less than that of a police
officer.

Budget Narrative and Summary
210 City of Milpitas • Police
244
Item # 1.

Police Department
Budget Narrative and Summary
City of Milpitas • Police 211
245
Item # 1.

Police Department
Budget Narrative and Summary
212 City of Milpitas • Police
246
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Accomplishments

1. Maintained an average response time to
emergency calls of 2:44 (calendar year
2021). P P P P

2. Answered 95.18% of 911 calls within ten (10)
seconds (calendar year 2021). P P

3. Participated in over 75 community outreach
events (calendar year 2021). P P P

4. Implemented a process to collect and report
data in compliance with the Racial and
Identity Profiling Act (RIPA). P

5. Deployed remote restraint devices. P P

6. Implemented a program to redirect youth
offenders away from the juvenile justice
system. P P

7. Developed a department policy to ensure
compliance with Assembly Bill 481 (Military
Equipment Funding, Acquisition and Use). P

8. Implemented a traffic diversion program for
juveniles and seniors. P P
Budget Narrative and Summary
City of Milpitas • Police 213
247
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Initiatives

1. Ensure average response times to
emergency calls remains under three (3)
minutes. P P P P

2. Reduce Part 1 Uniform Crime Reporting and
Index crimes* through prevention,
deterrence, and enforcement efforts. P

3. Ensure 95% of 911 calls are answered by a
dispatcher within ten (10) seconds/ The state
standard is 95% within fifteen (15) seconds. P P

4. Host Community Engagement events (in-
person, virtual) such as coffee with a cop,
HOA community presentations, citizen
academies, virtual book readings, and faith-
based community meetings.

P P P

5. Ensure 100% registration verification of
known sex offenders. P P

6. Conduct 15 directed enforcement events to
improve traffic safety. P P P P

7. Transition to the National Incident-Based
Reporting System. P
*Part 1 Uniform Crime Reporting and index crimes: murder, sex offenses, robbery, aggravated assault, burglary, motor vehicle theft, and arson.

Budget Narrative and Summary
214 City of Milpitas • Police
248
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Average response time to emergency calls
(minutes)
2:37 2:43 2:45 2:56 2:50
Part 1 Uniform Crime Reporting Index crimes
(2% annual reduction target)
2,286 2,146 2,129 2,777 2,721
Community Events: Coffee with a cop, HOA
presentations, Citizen academies, faith-
based community meetings
14 11 11 11 11
9-1-1 calls answered by a dispatcher within
ten (10) seconds*
96% 96% 96% 96% 96%
Verification of known sex offenders
100% 100% 100% 100% 100%
ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 21-22
Target
Computer Aided Dispatch (CAD) system
generated events
72,650 73,813 74,500 73,724 77,289
Arrests reported to FBI (all crimes)
1,807 1,893 2,100 1,887 1,884
Citations issued
4,660 3,370 4,200 3,791 3,375
Community presentations
64 81 80 61 67
Number of unhoused/homeless persons
contacted
999 1,676 1,550 2,547 3,126
Total hours spent on calls related to
unhoused/homeless persons
569 1,255 1,033 1,746 2,318
*State standard is 95% within 15 seconds
Budget Narrative and Summary
City of Milpitas • Police 215
249
Item # 1.

Budget Summary
Communications $3,420,887 $3,921,419 $4,093,208 $4,827,647 $734,439 17.9 % Community Relations 697,122 719,892 878,718 1,055,901 177,183 20.2 % Crossing Guards 358,278 65,082 513,444 512,946 (498) (0.1) % Investigations 4,419,179 4,143,464 4,902,514 5,165,725 263,211 5.4 % Patrol Services 19,807,169 20,526,802 19,210,118 21,543,922 2,333,804 12.1 % Personnel & Training 641,674 650,221 546,825 602,806 55,981 10.2 % Police Administration 1,601,175 1,548,846 1,691,187 1,238,154 (453,033) (26.8) % Records 1,747,344 1,346,700 1,559,043 1,501,086 (57,957) (3.7) % Traffic 1,608,523 1,862,656 2,271,848 1,780,020 (491,828) (21.6) % TOTAL $34,301,351 $34,785,082 $35,666,905 $38,228,206 $2,561,301 7.2 % DOLLARS BY FUNCTION 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %

PERSONNEL SERVICES
4111 Permanent Salaries $17,106,838 $17,451,886 $18,538,251 $19,910,663 $1,372,412 7.4 % 4112 Temporary Salaries 551,812 170,244 585,873 585,873 0 0.0 % 4113 Overtime 719,723 587,898 767,643 778,732 11,089 1.4 % 4121 Allowances 145,544 141,478 139,250 143,532 4,282 3.1 % 4124 Leave Cashout 496,058 1,351,629 0 0 0 0.0 %
4131 PERS 8,725,809 8,656,246 9,333,231 10,092,630 759,399 8.1 % 4132 Group Insurance 2,324,032 2,392,107 2,716,944 2,926,554 209,610 7.7 % 4133 Medicare 267,668 285,723 279,253 299,276 20,023 7.2 % 4135 Worker's Compensation 580,977 727,947 946,854 1,020,193 73,339 7.7 % 4138 Deferred Comp-Employer 7,816 12,556 11,590 12,600 1,010 8.7 % 4139 PARS 5,586 1,114 8,297 7,666 (631) (7.6) %
4141 Adjustments-Payroll 0 0 0 (160,000) (160,000) 0.0 % 4146 Short Term Disability 0 0 1,082 4,282 3,200 295.7 % 4161 Retiree Medical Reserve 825,915 276,532 320,047 327,370 7,323 2.3 % sub-total 31,757,778 32,055,360 33,648,315 35,709,371 2,061,056 6.1 %

SUPPLIES AND CONTRACTUAL SERVICES
4200 Community Promotion,Grant/
Loan 0 150 500 500 0 0.0 %
4210 Department Allocations 617,268 660,966 614,780 681,999 67,219 10.9 % 4220 Supplies 400,600 615,576 175,579 193,579 18,000 10.3 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Budget Narrative and Summary
216 City of Milpitas • Police
250
Item # 1.
4230 Services 1,152,086 940,764 972,060 1,066,549 94,489 9.7 % 4240 Repair & Maintenance 34,911 20,406 33,769 34,950 1,181 3.5 % 4410 Communications 16,896 17,753 18,000 18,000 0 0.0 % 4500 Training, Travel, &
Memberships 179,247 121,021 143,901 156,091 12,190 8.5 % sub-total 2,401,008 2,376,636 1,958,589 2,151,668 193,079 9.9 %

CAPITAL OUTLAY
4850 Vehicles 73,349 235,877 0 307,168 307,168 0.0 %
4870 Machinery and Equipment 0 0 0 0 0 0.0 %
4910 Office Furniture & Fixtures 68,426 111,611 0 0 0 0.0 % 4920 Machinery, Tools & Equipment 790 5,598 60,000 60,000 0 0.0 % sub-total 142,565 353,086 60,000 367,168 307,168 511.9 % TOTAL $34,301,351 $34,785,082 $35,666,904 $38,228,207 $2,561,303 7.2 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Staffing
POSITIONS BY FUNCTION 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Communications 17.00 17.00 17.00 17.00 0.00
Community Relations 2.00 3.00 3.00 3.00 0.00
Crossing Guards 0.00 0.00 0.00 0.00 0.00
Investigations 13.00 15.00 15.00 16.00 1.00
Patrol Services 72.00 71.00 69.00 71.00 2.00
Personnel & Training 1.00 1.00 1.00 1.00 0.00
Police Administration 5.00 5.00 5.00 5.00 0.00
Records 10.00 8.00 8.00 8.00 0.00
Traffic 6.00 6.00 6.00 6.00 0.00
TOTAL 126.00 126.00 124.00 127.00 3.00
Assistant Police Chief 1.00 1.00 1.00 1.00 0.00
Chief of Police 1.00 1.00 1.00 1.00 0.00
Communications Dispatch
Supervisor 3.00 3.00 3.00 3.00 0.00
Communications Dispatcher 12.00 12.00 12.00 12.00 0.00
Community Service Officer 4.00 4.00 4.00 4.00 0.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Budget Narrative and Summary
City of Milpitas • Police 217
251
Item # 1.

Crime Analyst 1.00 1.00 1.00 1.00 0.00
Executive Assistant 1.00 1.00 1.00 1.00 0.00
Executive Secretary 0.00 0.00 0.00 0.00 0.00
Office Specialist 1.00 1.00 1.00 1.00 0.00
Patrol Officer 3.00 0.00 0.00 0.00 0.00
Police Captain 3.00 3.00 3.00 3.00 0.00
Police Clerk II 6.00 6.00 6.00 6.00 0.00
Police Clerk Supervisor 1.00 1.00 1.00 1.00 0.00
Police Evidence Technician 2.00 2.00 2.00 3.00 1.00
Police Lieutenant 4.00 4.00 4.00 4.00 0.00
Police Management Analyst 1.00 1.00 1.00 1.00 0.00
Police Officer 68.00 71.00 69.00 71.00 2.00
Police Sergeant 13.00 13.00 13.00 13.00 0.00
Police Support Services Mgr 1.00 1.00 1.00 1.00 0.00
Total Positions 126.00 126.00 124.00 127.00 3.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Expenditures by Function
Communications
$4,827,647

12.6%
Community Relations
$1,055,901

2.8%
Investigations
$5,165,725

13.5%
Traffic
$1,780,020

4.7% Police Administration
$1,238,154

3.2%
Patrol Services
$21,543,922

56.4%
Personnel & Training
$602,806

1.6%
Records
$1,501,086

3.9%
Budget Narrative and Summary
218 City of Milpitas • Police
252
Item # 1.

Budget Reconciliation
PRIOR YEAR BUDGET 124.00 $35,606,904 $60,000 $35,666,904 One-Time Prior Year Budget Adjustments
Restore 2.0 Police Officers (8/9/2021) 2.00 109,568 109,568 4th of July, 2021 Savings - Police 11,089 11,089
One-Time Prior Year Budget Adjustments 2.00 120,657 0 120,657 Adjustments to Costs of Ongoing Activities
Salary and Benefits 1,793,597 1,793,597
Equipment Replacement Amortization 67,219 67,219
Silicon Valley Regional Interoperability Authhority
(SVRIA) Operation Maintenance 17,173 17,173
Ammunition Cost Increase 13,000 13,000
Non-Personnel Expenditure Alignment to
Historical Trend 36,399 233,003 269,402
Police Vehicle Replacement 74,165 74,165
Adjustments to Costs of Ongoing Activities 0.00 2,001,553 233,003 2,234,556 Total FY2022-23 Base Budget 126.00 37,729,114 293,003 38,022,117 Service Level Changes
Police Property Evidence Unit Staffing (1 FTE) 1.00 136,855 136,855 Wellness Services Enhancement 30,000 30,000
Axon Taser Upgrade 39,235 39,235
Total Service Level Changes 1.00 206,090 0 206,090
Total FY 2022-23 Budget 127.00 $37,935,204 $293,003 $38,228,207 Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Police 219
253
Item # 1.

Service Level Changes

1. Police Property Evidence Unit Staffing 1.00 $136,855 $0 $136,855 This action adds 1.0 Police Evidence Technician in response to increasing workload in the Property Evidence Unit (PEU). The PEU is responsible for receiving, documenting, storing, managing, and maintaining the integrity and security of the property and evidence retained by the Milpitas Police Department. The primary job functions include but are not limited to: intake, custody/control, disposition, discovery requests, property returns, report processing, crime lab submissions, and purging evidence/ property. As the City grew, new residential and business developments have led to increases in call volume and evidence collection. In addition, technological advances have also led to an increase in discovery requests since more digital, audio, and Body Worn Camera footage is available. As a short- term solution, additional staff have been temporarily assigned to the PEU to mitigate the increased workload. However, best practices suggest physical access to property and evidence storage areas should be limited to Police Evidence Technicians and supervisors only. As such, an additional Police Evidence Technician is necessary to ensure performance of the department.

Performance Impact
The addition of 1.0 Police Evidence Technician is expected to result in reduced processing time, increased capacity in volume of evidence processed and contribution to the efficient function of the department.

Mitigation
If not funded, the PEU would not function as efficiently; there would be a delay in the processing of evidence items internally (intake, cataloging, safe storage, purging, etc.), externally (prepping evidence items for forensic analysis, releasing of property to owners, etc.), and for judicial proceedings (discovery requests). Without the additional Police Evidence Technician, other staff may need to be temporarily reassigned to assist solely with the weekly demand of discovery requests, conflicting with best practices.

In addition, one of the two current Police Evidence Technicians would spend the majority, if not all, of their work week processing discovery requests, thereby leaving the remaining Police Evidence Technician to handle the day-to-day operations of the unit which will hamper the efficiency of the unit as well.

Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
220 City of Milpitas • Police
254
Item # 1.

2. Wellness Services Enhancement 0.00 $30,000 $0 $30,000 This action funds additional wellness services for the Police Department staff. The Milpitas Police Department is a full-service police department that consists of 93 sworn and 33 non-sworn positions, serving a population of over 80,000 residents. In addition, officers respond to almost 20,000 emergency calls for service per calendar year, including several critical and traumatic incidents (such as recent homicide and child death cases, for example). Law enforcement personnel, both sworn and non-sworn, experience a range of daily stressors within the course of their work, highlighting the need for direct and continuous support for their mental and physical well-being. Research indicates that mental and physical health directly impacts job performance, thus dedicated wellness funding will impact our employees’ ability to effectively serve the community. This proposal enhances our existing Peer Support and Employee Wellness Program by implementing additional wellness resources for staff, such as attending Post-Traumatic Stress Retreats and providing an on-call mental health clinician for those seeking help and for post-critical incident debriefs.

Performance Impact

This funding will contribute to a more proactive approach to employee wellness, thus helping to ensure our staff can continue providing a high level of service to the community. This proposed increase aims not to only enhance our current wellness services provided to employees, such as peer support and Cordico, but is also intended to promote a wellness culture throughout the entire department. Funding is requested for mental health wellness retreats and a dedicated clinician, upon employee request and for post-critical incident debriefs, to provide those in need with an educational experience designed to help staff recognize signs and symptoms of work related stress and to build the skills necessary to cope with stressors, establish better social support, increase self-understanding and improve overall quality of life through wellness based approaches.

Mitigation
If this action is not funded, the department will not have dedicated funding to support the ongoing need for the aforementioned wellness services.

Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Police 221
255
Item # 1.

3. Axon Taser Upgrade 0.00 $39,235 $0 $39,235
This action adds additional funding to Axon Enterprises contractual services to upgrade the current Taser X26P to Taser 7 model. The department currently issues Axon Enterprise, Inc. body worn cameras and conducted energy weapons to sworn personnel and subscribes to their cloud-based digital evidence management system for data storage, items critical to operations. Conducted energy weapons have been part of Milpitas Police officers’ daily equipment for 25+ years and are an integral tool that provide officers with a less than lethal force option, reducing risk of injury to officers and suspects. The Department has issued the Taser X26P model to all sworn officers for 10+ years. Due to advancing technology, Axon Enterprise, Inc. developed the Taser 7 model and will not support the currently issued model, anymore.

The Taser 7 model offers enhancements including close-range optimization, more effective connection, enhanced inventory and data management, daylight laser, improved ergonomic design, and more.

Performance Results:

The upgrade to Taser 7 model will give officers the confidence to de-escalate dangerous situations due to the noted enhancements thereby potentially reducing the risk of injury to suspects and officers.

Consequently, this action can yield cost savings for the City in injury claims and litigation.

Impact if funding is not approved
If this action is not funded, the department would continue to use the Taser X26P model, which will no longer be supported by Axon Enterprises in the next five years. This would leave the department with an aging less than lethal tool for which replacement parts will become difficult to acquire. As a result, the new Taser 7 conducted energy weapons would need to be purchased as replacements as needed, therefore creating a familiarity issue with officers as there would be two different models of conducted energy weapons issued to sworn personnel. The purchase of Taser 7 conducted energy weapons out of contract will incur a price increase in the per unit cost, as the intent of the bundled pricing model from Axon Enterprises, Inc. is to provide one set price. Purchasing hardware out of contract will cause additional staff work as there will be new items purchased on a different billing and warranty cycle than the original contract purchase. The police department’s continued use of outdated technology may increase the likelihood of device failure during a critical incident, which may result in injury to suspects and/or officers and the City’s exposure to potential litigation.

Total Service Level Changes 1.00 $206,090 $0 $206,090
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
222 City of Milpitas • Police
256
Item # 1.

Public Works
Director: Tony Ndah
Mission Statement Description
The Public Works Department is
committed to enhancing the
quality of life and ensuring public
health and safety in the
community. We are defined by
our responsiveness to the public
and our commitment to provide
excellent customer service, which
includes quality and responsive
service and resources to operate
and maintain the City's
infrastructure in a safe, timely,
and efficient manner.

The Public Works Department operates and maintains the
City's infrastructure and facilities, including public streets, utilities, parks, street landscaping, City vehicles, and City buildings. The Department also oversees and implements key environmental services and sustainability programs, including the Climate Action Plan, solid waste program and regulatory compliance. The ten functional areas of the Department are Administration, Streets Maintenance, Utility Engineering, Utility Operations and Maintenance, Park Maintenance, Trees and Landscape Maintenance, Fleet Maintenance, Facilities
Maintenance, Environmental Compliance and Sustainability, and Solid Waste.

Budget Narrative and Summary
City of Milpitas • Public Works 223
257
Item # 1.

Services
• Provides management, direction and coordination
for the operation, maintenance, and repair of City
infrastructure and equipment assets.
• Controls and manages department budgets,
including large/complex projects and contracts;
implements improvements to operations of
department functions and formulates policies and
procedures; and administers department training
and safety programs.
• Maintains the City's traffic signal system, street
signs, street lights, paved roadways, and
pavement markings in accordance with the Clean
& Safe Streets program and State Code
requirements.
• Provides sidewalk repair, right-of-way weed
abatement, and debris and graffiti removal.
• Operates and maintains the water distribution
system, including 206 miles of water lines, 4
pumping stations, 5 storage reservoirs, and
numerous pressure valves regulating 7 pressure
zones, to deliver 11 million gallons per day of
potable water to approximately 15,688 accounts.
• Provides asset management and engineering
support to ensure compliance with regulatory
permits for the City's water, sewer, and stormwater
systems.
• Operates and maintains the sewer collection
system, including 175 miles of sewer lines and 2
pumping stations to discharge 14.25 million
gallons per day to the San Jose/Santa Clara
Regional Wastewater Facility.
• Operates and maintains the stormwater collection
system, including 105 miles of storm pipe and 13
pump stations to convey storm water to local
creeks.
• Manages the City's sustainability and
environmental programs including climate action,
solid waste, stormwater management, and
compliance with state, federal and local
environmental regulations.
• Provides park maintenance for more than 190
acres of parkland, including playgrounds, picnic
areas, athletic fields, pathways, landscaping, park
restrooms, park trees, lagoons, and parking lots.
• Maintains more than 17,500 trees and 130 acres
of median landscaping, including City tree planting
and pruning, trails, and litter control.
• Maintains and repairs City vehicles and motorized
equipment, including police vehicles, fire
apparatus, construction equipment, mowers, and
communication radios.
• Maintains 368,150 square feet of City buildings
and grounds, including building systems
(plumbing, electrical, heating, air conditioning,
ventilation, and backup power); sets up rooms for
rental groups and meetings; and provides
custodial services.

Budget Narrative and Summary
224 City of Milpitas • Public Works
258
Item # 1.

Public Works Department
Budget Narrative and Summary
City of Milpitas • Public Works 225
259
Item # 1.

Public Works Department
Budget Narrative and Summary
226 City of Milpitas • Public Works
260
Item # 1.

Public Works Department
Budget Narrative and Summary
City of Milpitas • Public Works 227
261
Item # 1.

Public Works Department
Budget Narrative and Summary
228 City of Milpitas • Public Works
262
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Accomplishments

1. Implemented Council approved Energy and
Water Savings program measures for water
meter, water fixtures, lighting, and solar
resiliency at Senior Center and Community
Center.

P P P P

2. Started construction of Main Lift Odor
Emissions Control Project at the Main Lift
Pump Station. P P P

3. Implemented Council approved water
conservation measures and programs to
meet conservation targets per State and City
Ordinance.

P P P

4. Implemented Council approved dumpster
days and pilot voucher program for solid
waste. P P

5. Implemented Council approved Street
Sweeping Pilot Program. P P

6. Completed upgrades to Advanced Traffic
Management System facility. P P

7. Completed leak detection of 25 miles of
underground waterlines in the City and
performed non-destructive condition
assessment of 2 miles of high-risk water
pipelines.

P P P

8. Launched citywide motor pool service. P P

9. Completed park renovations at Dixon
Landing sports field and snack shack. P
Budget Narrative and Summary
City of Milpitas • Public Works 229
263
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Initiatives

1. Finalize Financial Utility Master Plan and
Adopt Final Master Plans for Water, Sewer,
and Storm for Council consideration,
implement capital projects and programs
based on recommendations of the Utility
Master Plans, and complete construction of
the emissions odor control project at Main
Lift Sewer Pump Station.

P P P

2. Finalize SCADA portion of Council approved
energy and water savings projects and
transition to measurement and verification of
savings achieved.

P P P

3. Complete update of the Climate Action Plan
and begin implementation strategies and
measures to meet the City’s sustainability
goals.

P P P

4. Sequence and schedule maintenance
activities to achieve 70% completion rate of
preventive maintenance versus reactive
maintenance. Refine asset management
programs to ensure the City’s assets and
infrastructure are updated and well
maintained.

P P

5. Conduct route inspection and outreach to
businesses and multi-family properties to add
organics collection services in compliance
with SB 1383.

P P P

6. Execute design services contract to convert
city medians to low water and low
maintenance landscapes. P P

7. Implement improvements to City’s traffic
control systems to improve mobility and
communication with City’s Advanced Traffic
Management System.

P P P

8. Implement capital projects based on Parks
Master Plan. P

9. Right sizing of City fleet to ensure efficient
use and implementation of green fleet in
support of the climate action plan. P P

10. Implement Facilities CIPs for HVAC to
replace aging infrastructure and improve
comfort of staff working in City buildings. P
Budget Narrative and Summary
230 City of Milpitas • Public Works
264
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Customers surveyed that are satisfied with
facility maintenance services
N/A 90% 90% 90% 90%
Up-time for City vehicles and equipment
N/A 98% 95% 95% 95%
Graffiti incidents removed in 10 days
19% 52% 90% 90% 90%
Water samples meeting or surpassing State
and Federal water quality standards
100% 100% 100% 100% 100%
Utility capital projects completed on schedule
and within budget in accordance with work
plan milestone
N/A N/A 80% 100% 80%
Reduction in community-wide greenhouse gas
(GHG) emissions below baseline
19% 15% 15% 20% 22%
Users rating parks in good or better condition
N/A N/A 80% 85% 80%
Regulatory compliance items completed on-
time
N/A N/A 100% 100% 100%
Stormwater permit requirements completed
on-time
N/A N/A 100% 100% 100%
Total work orders closed out within one month
or less
N/A N/A 80% 80% 80%
Budget Narrative and Summary
City of Milpitas • Public Works 231
265
Item # 1.

ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Signs repaired
279 812 600 600 600
Acreage of Weed Abatement*

N/A N/A N/A N/A N/A
Number of fleet work orders received for
service
1,486 N/A 1,200 1,800 1,800
Number of Facilities work orders received for
service*

N/A N/A N/A N/A N/A
Water distribution pipelines cleaned (linear
feet)
N/A N/A 208,000 106,000 165,000
Sanitary sewer pipelines cleaned (linear feet)
528,051 549,693 360,000 360,000 260,000
Number of calls received by DPW Customer
Service
12,500 8,209 10,000 10,000 10,000
Number of large item pick-ups completed
N/A N/A 2,735 2,735 2,735
Number of solid waste customer service calls
N/A N/A 15,900 15,900 15,900
Number of participants who submitted rebates
and attended water conservation workshops
N/A N/A 610 460 500
*New performance measures added for FY22-23.

Budget Narrative and Summary
232 City of Milpitas • Public Works
266
Item # 1.

Budget Summary
Compliance $455,473 $734,121 $778,664 $811,752 $33,088 4.2 % Facilities Maintenance 2,827,880 2,692,318 2,625,111 2,789,838 164,727 6.3 % Fleet Maintenance 1,759,771 1,867,295 1,858,936 2,071,181 212,245 11.4 % Park Maintenance 1,460,124 1,447,147 1,789,492 1,742,849 (46,643) (2.6) % Public Works Administration 2,462,239 2,361,014 2,637,517 3,672,063 1,034,546 39.2 % Solid Waste 143,745 503,090 895,969 848,393 (47,576) (5.3) % Street Maintenance 1,660,372 2,040,701 2,062,846 2,334,159 271,313 13.2 % Trees & Landscape
Maintenance 1,751,260 2,011,098 2,176,008 2,656,952 480,944 22.1 % Utility Engineering 1,286,140 1,123,341 1,310,693 1,326,930 16,237 1.2 % Utility Maintenance 5,024,844 5,387,131 4,266,369 4,990,587 724,218 17.0 % TOTAL $18,831,848 $20,167,256 $20,401,605 $23,244,699 $2,843,094 13.9 % DOLLARS BY FUNCTION 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %

PERSONNEL SERVICES
4111 Permanent Salaries $6,164,918 $7,138,713 $7,853,825 $8,780,885 $927,060 11.8 % 4112 Temporary Salaries 261,651 138,322 277,554 277,554 0 0.0 % 4113 Overtime 259,622 297,404 288,950 307,300 18,350 6.4 % 4119 Adjustments-Payroll 0 0 0 0 0 0.0 %
4121 Allowances 124,728 128,389 30,284 29,424 (860) (2.8) % 4122 Standby Pay MEA 0 0 123,682 123,682 0 0.0 %
4124 Leave Cashout 208,850 198,304 0 0 0 0.0 %
4125 Accrued Leave (6,266) 211,699 0 0 0 0.0 %
4126 Stipend MEA 995 350 0 0 0 0.0 %
4131 PERS 2,420,301 2,378,507 2,644,682 2,677,328 32,646 1.2 % 4132 Group Insurance 1,190,711 1,357,738 1,553,759 1,731,990 178,231 11.5 % 4133 Medicare 101,090 115,417 118,544 128,740 10,196 8.6 % 4135 Worker's Compensation 37,610 58,366 65,331 182,619 117,288 179.5 % 4138 Deferred Comp-Employer 14,945 15,480 17,222 18,001 779 4.5 % 4139 PARS 3,838 2,072 4,674 4,674 0 0.0 %
4146 Short Term Disability 0 0 6,219 22,132 15,913 255.9 % 4161 Retiree Medical Reserve 347,224 87,273 93,189 98,937 5,748 6.2 % sub-total 11,130,217 12,128,034 13,077,915 14,414,567 1,336,652 10.2 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Budget Narrative and Summary
City of Milpitas • Public Works 233
267
Item # 1.

SUPPLIES AND CONTRACTUAL SERVICES
4200 Community Promotion,Grant/
Loan 8,806 24,268 236,500 155,840 (80,660) (34.1) %
4210 Department Allocations 936,272 990,101 962,543 875,091 (87,452) (9.1) % 4220 Supplies 1,219,674 1,625,084 1,288,294 1,521,255 232,961 18.1 % 4230 Services 3,969,752 4,094,884 4,053,289 5,186,276 1,132,987 28.0 % 4240 Repair & Maintenance 534,346 250,160 261,100 276,196 15,096 5.8 % 4410 Communications 7,769 9,963 21,120 21,120 0 0.0 %
4420 Utilities 168,410 232,988 239,527 247,945 8,418 3.5 % 4500 Training, Travel, &
Memberships 87,570 43,218 221,315 226,865 5,550 2.5 %
sub-total 6,932,599 7,270,666 7,283,688 8,510,588 1,226,900 16.8 %

CAPITAL OUTLAY
4850 Vehicles 574,816 62,543 0 259,532 259,532 0.0 %
4870 Machinery and Equipment 32,743 680,645 0 20,017 20,017 0.0 % 4920 Machinery, Tools & Equipment 0 10,047 0 0 0 0.0 % 4930 Hydrants and Meters 161,473 15,321 40,000 40,000 0 0.0 % sub-total 769,032 768,556 40,000 319,549 279,549 698.9 % TOTAL $18,831,848 $20,167,256 $20,401,603 $23,244,699 $2,843,102 13.9 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Staffing
POSITIONS BY FUNCTION 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Compliance 2.00 2.00 2.00 2.00 0.00
Facilities Maintenance 10.00 12.00 11.00 11.00 0.00
Fleet Maintenance 5.00 5.00 5.00 5.00 0.00
Public Works Administration 10.00 10.00 10.00 10.00 0.00 Solid Waste 3.00 3.00 3.00 3.00 0.00
Street Maintenance 10.00 10.00 11.00 14.00 3.00
Trees & Landscape
Maintenance 8.00 8.00 8.00 11.00 3.00
Utility Engineering 5.00 5.00 5.00 5.00 0.00
Utility Maintenance 20.00 20.00 19.00 20.00 1.00
TOTAL 73.00 75.00 74.00 81.00 7.00
Budget Narrative and Summary
234 City of Milpitas • Public Works
268
Item # 1.

Administrative Analyst I 1.00 1.00 1.00 1.00 0.00
Administrative Analyst II 2.00 2.00 2.00 2.00 0.00
Assistant Civil Engineer 1.00 1.00 1.00 1.00 0.00
Assistant Water Operator 1.00 1.00 1.00 1.00 0.00
Associate Civil Engineer 2.00 2.00 2.00 2.00 0.00
Deputy Public Works Director 1.00 1.00 1.00 1.00 0.00
Engineering Aide 1.00 1.00 1.00 1.00 0.00
Envir & Regulatory Compliance
Spec 1.00 1.00 1.00 1.00 0.00
Environmental Inspector 1.00 1.00 1.00 1.00 0.00
Equipment Maint Worker II* 4.00 4.00 3.00 3.00 0.00
Equipment Maint Worker III 5.00 5.00 4.00 5.00 1.00
Fleet Maintenance Worker II 3.00 3.00 3.00 3.00 0.00
Fleet Maintenance Worker III 1.00 1.00 1.00 1.00 0.00
Maintenance Custodian II 3.00 4.00 4.00 4.00 0.00
Maintenance Custodian III 1.00 2.00 2.00 2.00 0.00
Maintenance Worker I 3.00 3.00 3.00 5.00 2.00
Maintenance Worker II 16.00 16.00 16.00 16.00 0.00
Maintenance Worker III 9.00 9.00 10.00 10.00 0.00
Maintenance Assistant 0.00 0.00 0.00 4.00 4.00
Office Assistant II 1.00 1.00 1.00 1.00 0.00
Office Specialist 1.00 1.00 1.00 1.00 0.00
Principal Civil Engineer 1.00 1.00 1.00 1.00 0.00
Public Works Director 1.00 1.00 1.00 1.00 0.00
Public Works Manager 3.00 3.00 3.00 3.00 0.00
Senior Administrative Analyst 3.00 3.00 3.00 3.00 0.00
Senior Public Works Lead 6.00 6.00 6.00 6.00 0.00
Water System Operator 1.00 1.00 1.00 1.00 0.00
Total Positions 73.00 75.00 74.00 81.00 7.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
*1.0 Equipment Maintenance Worker II is defunded.

Budget Narrative and Summary
City of Milpitas • Public Works 235
269
Item # 1.

Expenditures by Function
Compliance
$811,752

3.5%
Facilities Maintenance
$2,789,838

12.0%
Fleet Maintenance
$2,071,181

8.9%
Park Maintenance
$1,742,849

7.5%
Public Works Administration
$3,672,063

15.8%
Solid Waste
$848,393

3.6%
Street Maintenance
$2,334,159

10.0%
Trees & Landscape Maintenance
$2,656,952

11.4%
Utility Engineering
$1,326,930

5.7% Utility Maintenance
$4,990,587

21.5%
Budget Reconciliation
Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
PRIOR YEAR BUDGET 74.00 $8,789,057 $11,612,547 $20,401,604 One-Time Prior Year Budget Adjustments
Wet Well Cleaning Deferral (One-Time) 62,440 62,440
4th of July 2021 Savings - Public Works (One-
Time) 21,000 21,000
Water Quality Dechlorination (One-Time) (54,000) (54,000) One-Time Prior Year Budget Adjustments 0.00 83,440 (54,000) 29,440 Budget Narrative and Summary
236 City of Milpitas • Public Works
270
Item # 1.

Adjustments to Costs of Ongoing Activities
Salary and Benefits 317,361 305,811 623,172
Nova Contractual Service Increase 71,528 71,528
Battery Maintenance Increase 28,284 28,284
Encampment Clean Up 100,000 100,000
Other Contractual Service Increase (Brightview,
Central Square, SeeClickFix, etc.) 45,287 214,073 259,360 Equipment Amortization (79,444) (8,008) (87,452)
Equipment Replacement (Concrete Saw and
Flatbed Crane) 136,531 136,531
Fuel Cost 65,666 65,666
Police Car Upfitting Cost 98,000 98,000
Adjustments to Costs of Ongoing Activities 0.00 483,016 812,073 1,295,089 Total FY2022-23 Base Budget 74.00 9,355,513 12,370,620 21,726,133 Service Level Changes
Supervisory Control and Data Acquisition
(SCADA) Contract Service 67,500 82,500 150,000
Common Interest Group Legal Services 1,000,000 1,000,000 Storm Water Maintenance Staffing (Equipment
Maintenance Worker III 1 FTE) 1.00 140,290 24,512 164,802 Utility Maintenance Fleet Addition (One-Time) 37,356 37,356 Landscape Maintenance Staffing (3 FTE) 3.00 143,964 156,135 300,099 Organic Waste Diversion Program Funding and
Phase I of Eliminating the Structural Deficit in the
Solid Waste Fund
0 Park Maintenance Staffing (3 FTE) 3.00 (40,107) (93,583) (133,690) Total Service Level Changes 7.00 311,647 1,206,920 1,518,567 Total FY 2022-23 Budget 81.00 $9,667,160 $13,577,540 $23,244,699 Budget Narrative and Summary
City of Milpitas • Public Works 237
271
Item # 1.

Service Level Changes

1. Supervisory Control and Data Acquisition
(SCADA) Contract Services 0.00 $67,500 $82,500 $150,000 This action funds Supervisory Control and Data Acquisition (SCADA) contract service. In October 2020, Council approved a contract with ENGIE to implement energy and water savings measures for the City.

One of the Council approved measures is the implementation of SCADA, a remote utility infrastructure monitoring and operation system. SCADA will require ongoing monitoring of network, equipment and systems troubleshooting and maintenance, programming, user upkeep, security maintenance and integration with existing CMMS and GIS systems.

Performance Results:

With the funding, the City can procure services to maintain, operate and monitor the newly implemented SCADA instruments.

Impact if funding is not approved
If this action is not funded, the Public Works Department will not be able to efficiently maintain and operate the new SCADA instrumentation.

2. Common Interest Group Legal Services
Contribution 0.00 $0 $1,000,000 $1,000,000
This action funds legal costs incurred as part of the cost sharing agreement entered into by the City and Common Interest Group (CIG) formed by various sanitation districts in the region. In 2018, due to failed efforts to resolve contractual disputes in the Master Agreements with San Jose Santa Clara Regional Wastewater Facility (RWF), CIG filed lawsuits against the cities of San Jose and Santa Clara.

Performance Results:

Funding legal service fees will allow the City to fulfil its obligations with the CIG and continue the litigation against San Jose and Santa Clara to resolve existing contractual disputes.

Impact if funding is not approved
If this action is not funded, the City can be exposed to potential litigation and will not allow the City to fund ongoing associated legal costs.

Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
238 City of Milpitas • Public Works
272
Item # 1.

3. Storm Water Maintenance Staffing 1.00 $140,290 $24,512 $164,802 This action restores the previously defunded 1.0 Equipment Maintenance Worker III (EMWIII). On February 16, 2021, Council approved to defund multiple vacant positions to offset the budget shortfall, including a vacant EMWIII leadership position in the Utility Maintenance Division. This EMWIII position is responsible for ensuring ongoing operations of mechanical equipment at the City's 13 storm water pump stations; provides Standby coverage and leads storm water pump station emergency response during storms; assists Sewer and Water Pump Station crews when additional staff are needed for large repair and maintenance jobs; and is responsible for building and ground maintenance at the 13 pump station facilities.

This position provides Standby coverage and leads storm water pump station emergency response during storms. This position assists Sewer and Water Pump Station crews when additional staff are needed for large repair and maintenance jobs.

Additionally, the position is also responsible for building and ground maintenance at the 13 pump station facilities. This includes repairing to building doors and gates, painting bollards, rail, trim, and floors, and graffiti removal. Due to the location of the pump stations by creeks, these facilities are targets for vandalism.

Performance Impact

Currently, reduction in staff has restricted the department's maintenance capacity. Staff can only perform limited preventative maintenance on storm pump station mechanical and electrical equipment. This bare minimum level of preventative maintenance focuses on checking for engine performance, checking engine belts for damage and replacement only when damaged, and oil changes only when oil analysis warrants change. While the level of limited preventative maintenance is passible for one year, it is not sustainable and especially due to the age of our equipment, restoration of this position is needed so that more complete preventative maintenance can be conducted to ensure that these engines, pumps, and electrical equipment are operational during storm events. The restoration of EMWIII will complete preventative maintenance on all equipment, ensures early detection and repair of equipment, and will minimize surprise engine and pump breakdowns during storm events.

Mitigation
If this action is not funded, only minimum level preventative maintenance service can be provided for the water pump stations, electric engines, right angle drive engines and other mechanical equipment part of the utility system. This will eventually cause a significant breakdown in the system due to inadequate maintenance and can result in flooding.

Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Public Works 239
273
Item # 1.

4. Utility Maintenance Fleet Addition $0 $37,356 $37,356 This action funds one F250 with tommy lift gate for the Storm/Sewer Senior Lead. As part of the FY 2018-19 Adopted Budget, the City Council approved the addition of 1.0 Senior Lead position in the Utility Maintenance Division. The Senior Lead is currently using the truck that is assigned to the defunded Equipment Maintenance Worker III (EMWIII) (Storm) position, which is proposed to be restored as part of this budget.

Performance Results:

The new vehicle will provide the necessary equipment for staff to perform their work efficiently.

Impact if funding is not approved
If this action is not funded, there will not be enough vehicles in utility maintenance fleet for staff.

5. Landscape Maintenance Staffing 3.00 $153,654 $146,445 $300,099 This action funds the addition of 2.0 Maintenance Worker I positions, and one limited term 1.0 Maintenance Assistant to provide enhanced landscape maintenance services. On October 19, 2021, the City Council received a report on the status of Citywide Landscape and Park Maintenance and expressed to enhance the service levels for landscape maintenance. The 1.0 Maintenance Worker I and 1.0 Maintenance Assistant will be deployed to address work requests that are submitted to Public Works which must be completed within established time frames. The second Maintenance Worker I position will provide additional work support when the Maintenance Worker III position is supervising the Parks Maintenance Division.

Performance Impact

Additional Maintenance Worker (I) positions and Maintenance Assistant will enhance existing landscape maintenance services.

Mitigation
If this action is not funded, staff will not be able to provide enhanced landscape maintenance services for the community.

Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
240 City of Milpitas • Public Works
274
Item # 1.

6. Organic Waste Diversion Program
Funding and Phase I of Eliminating the
Structural Deficit in the Solid Waste Fund
$0 $0 $0
This action funds ongoing existing programs required to ensure compliance with new regulations from the passing of Senate Bill 1383 (SB1383). Senate Bill 1383 (SB 1383), which became effective on January 1, 2022, mandates jurisdictions to divert organic waste from the landfill by requiring all residents and businesses to collect organic waste, such as food scraps. The staff cost related to the one-time implementation of SB 1383 has been charged to the Solid Waste Fund; however, there is no identified ongoing revenue source for the ongoing compliance work such as compliance inspections, route reviews, education and outreach, recordkeeping/documentation. Further, this action is the first phase of eliminating the structural deficit in the Solid Waste Fund, which is projected to have insufficient resources by the end of fiscal year 2022-23 to support solid waste programs. Therefore, to fund these programs, consistent with the Franchise Agreement with MSI, the City’s waste hauler, an administrative solid waste increase of 2% effective July 1, 2022 will be implemented. A 2% rate increase equates to a $0.87 additional per month charge for the average residential household or $10.50 annually.

Performance Results:

Funding of the implementation program will allow the City to be in compliance with new SB1383 regulations and begin to eliminate structural deficit in the Solid Waste Fund.

Impact if funding is not approved
If not funded, the structural deficit will not be addressed. Additionally, City may not be able to meet compliance requirements, and may be fined by the State anywhere from $500 - $10,000 a day.

7. Park Maintenance Staffing 3.00 $(49,797) $(83,894) $(133,691) This action funds the addition of 3.0 limited term Maintenance Assistants and shifts 1.0 Maintenance Worker III position from the Trees and Landscape Maintenance Function to the Parks Maintenance Function in-lieu of contracting out park maintenance for 10 parks and skate park. New total programmatic cost for the four positions as well as equipment and supplies (ongoing and one-time) for enhanced services is $459,153 in comparison with the prior contract service appropriation of $446,791.

Performance Results:

The maintenance level of the 10 City parks and skate park is expected to be equivalent to the remaining 26 parks in the City.

Impact if funding is not approved
If this action is not approved, the maintenance for those 10 parks and skate park will not be maintained at the same service level as the parks under the Brightview contract.

Total Service Level Changes 7.00 $311,647 $1,206,919 $1,518,566 Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Public Works 241
275
Item # 1.

Budget Narrative and Summary
242 City of Milpitas • Public Works
276
Item # 1.

Recreation and
Community Services
Recreation and Community Services Director: Renee Lorentzen Mission Statement Description
The City of Milpitas Recreation and Community
Services Department's mission is to enrich our
community through exceptional programs and
services. Our vision is a Milpitas where all
residents have access to excellent, affordable,
innovative and well-run recreation activities,
programs, facilities and community services. Our
work encourages cultural unity and hometown
pride, creates a sense of place, supports
economic development, promotes health and
wellness, fosters human development, addresses
important social service needs and adds fun to
the lives of those who live and work in Milpitas.

The department provides recreational opportunities and
experiences, community and social services, and park and facility rentals for all residents and visitors of Milpitas. The department is committed to providing the highest standard of excellence in public service through our programs,
events, and interactions with the community. The
department strives to create a sense of community, support economic development, promote health and wellness,
increase cultural awareness and facilitate solutions to community needs. The department monitors daily operation at three full-service Recreation Centers and three satellite centers. It also oversees and offers financial assistance program providing discounts on fee-based City Services for low income residents.

Budget Narrative and Summary
City of Milpitas • Recreation and Community Services 243 277
Item # 1.

Services
• Oversees Community Center operations,
including facility and park rentals, contract
classes, registration, sponsorships, and
marketing. Staffs six City Commissions, a City
Council subcommittee and a City Task Force.

Manages volunteer program, Beautify Milpitas
and the Adopt a Spot Program.
• Oversees Senior Center operations, including a
daily lunch program in partnership with Santa
Clara County, drop-in programs, recreation
classes, events, community resources, digital
literacy and lap top loaner program, onsite well-
being services such as HICAP and legal and tax
assistance.
• Oversees Sports Center operations and wellness
programs, including Fitness Center and outdoor
Pools, exercise classes, drop-in gym, lap swim,
adult and youth sports programs, swim lessons,
sports facility and field usage and coordination
with local sports organizations.
• Oversees Community Services operations,
including needs assessments and referrals for
seniors, low-income, disabled, mentally ill and
others in need. Administers the Milpitas
Assistance Program (MAP), which provides
discounts on recreation programs, utility services
and residential building permit fees. Administers
two American Recovery Program Act (ARPA)
Coronavirus Local Fiscal Recovery Fund
(CLFRF) programs: childcare subsidy for median
and low-income families, and mental health
programs for underserved populations. Manages
community service partnerships, including
pandemic-related efforts and care and shelter
during local emergencies.
• Provides youth programs, including daily after
school programming at seven elementary schools
and both Milpitas middle schools; Teen Center;
daily pre-K enrichment program; summer and
school break camps; and a summer youth
workforce program.
• Offers Special Events, including outdoor concerts
and movies; patriotic, cultural events, and
seasonal family events; ground breakings, park
openings and revitalization events.
• Offers Cultural Arts, including Milpitas Community
Theatre, Milpitas Community Concert Band,
Phantom Art Gallery, and the Milpitas Art and
Cultural Grant Program.
• Manages Public Art collection maintenance and
developer compliance with the Public Art
ordinance.

Budget Narrative and Summary
244 City of Milpitas • Recreation and Community Services 278
Item # 1.

Recreation and Community Services Department
Budget Narrative and Summary
City of Milpitas • Recreation and Community Services 245 279
Item # 1.

Recreation and Community Services Department
Budget Narrative and Summary
246 City of Milpitas • Recreation and Community Services 280
Item # 1.

Co
mmunity
Wellness and
Open Space
Ec
onomic
Development
and Job Growth
En
vironment
Go
vernance &
Administration
Ne
ighborhoods
and Housing
Pu
blic Safety
Tra
nsportation
and Transit
Accomplishments

1. Completed Park and Recreation Master Plan P P P

2. Established intern partnerships with local
universities in social services and senior
services. P P

3. Developed and produced 16-day Holiday
Magic event to activate a section of Main
Street P P P

4. Developed and launched Milpitas Civic
Leadership Program to train, recruit potential
commissioners P

5. Developed and launched Mural program P P

6. Launched monthly Beautify Milpitas Program P P P
Initiatives

1. Complete and report on first full year of ARPA
grant programs (childcare subsidy and
nonprofit grants, and new community
events).

P P P

2. Open renovated Alviso Adobe House and
launch public access schedule, docent and
field trip program. P

3. Assess current cost recovery by program/
service and develop/implement strategic plan
to reach cost recovery targets within five
years.

P P

4. Complete update to the City’s Historic and
Cultural Resources Plan and develop new
marker program. P P P

5. Develop and launch new programming to
active park spaces, in line with Parks &
Recreation Master Plan recommendation. P P

5. Complete Public Art Master Plan, and
collection maintenance plan. P P
Budget Narrative and Summary
City of Milpitas • Recreation and Community Services 247 281
Item # 1.

Performance and Workload Measures
PERFORMANCE MEASURES Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Customer Service satisfaction
surveys rating Good or Excellent
93% 98% 95% 95% 95%
Resident Transactions‡
4,688 4,898 6,656 6,656 7,000
Number of Park Acres per 1,000
Residents**

1.95 1.95 1.95 1.95 1.95
ACTIVITY AND WORKLOAD DATA Strategic
Goals
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Target
FY 21-22
Estimate
FY 22-23
Target
Recreation Program and Class Fees
Revenue
$1,093.964 $233,189 $1,206,916 $1,893,400 $1,893,400
Number of Social Media
Engagements***
9,863 33,790 8,000 8,000 10,000
Facility and Park Rental Revenue
$72,811 $37,630 $91,690 $135,000 $183,381
Number of Community Events
Offered****
37 10 16 16 29
Number of Social Services Calls
N/A 767 1,560 1,480 1,480
‡Proposed new measure to replace percentage increase of residents served. Actual count of resident transactions is more accurate, and provides a better, easier-to-calculate performance measure. An increase in transactions reflects both the relevance of services being offered and customer satisfaction as this may include repeat customers. This combines resident Senior Center and Sports center memberships, resident rentals, and resident enrollments in classes and ticketed events. All data can easily be exported from the Recreation registration system.
**3 acres per 1,000 residents - Quimby Act Standards (above acreage does not include Ed Levin Park County Park) ***Social media analytic tools for Recreation channels, plus manual counts for Recreation posts on Citywide channels. Beginning with FY 2018-19 Actual, Recreation and Community Services is counting only its own department post engagements. Prior to hire of Public Information Officer, Recreation handled all social media for City, so counts were based on social media posts by Recreation on behalf of all City Departments.
****Due to Public Health Orders, events from March 2020-present have been cancelled, or shifted to virtual or drive-thru format. Due to expected continuing capacity limits through 2021 and budget reductions, number of community events is sharply reduced from pre-pandemic numbers.

Budget Narrative and Summary
248 City of Milpitas • Recreation and Community Services 282
Item # 1.

Budget Summary
Aquatics $236,988 $145,321 $399,081 $408,340 $9,259 2.3 % General Classes 388,478 155,435 372,465 378,712 6,247 1.7 % Marketing 227,396 191,224 255,818 258,311 2,493 1.0 %
Performing Arts 48,692 19,234 79,900 79,900 0 0.0 %
Recreation Administration 1,801,524 1,559,741 1,767,830 1,826,566 58,736 3.3 % Senior Services 750,630 713,818 623,431 690,909 67,478 10.8 % Social Services 0 86,019 168,505 172,288 3,783 2.2 %
Special Events 481,850 85,820 223,631 429,395 205,764 92.0 % Sports & Fitness 516,234 386,573 444,567 576,099 131,532 29.6 % Youth Program 774,915 318,269 999,446 1,044,928 45,482 4.6 % TOTAL $5,226,707 $3,661,454 $5,334,674 $5,865,447 $530,773 9.9 % DOLLARS BY FUNCTION 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %

PERSONNEL SERVICES
4111 Permanent Salaries $1,563,494 $1,603,199 $1,534,660 $1,804,307 $269,647 17.6 % 4112 Temporary Salaries 1,228,379 494,509 1,609,512 1,661,649 52,137 3.2 % 4113 Overtime 4,453 1,019 25,000 35,000 10,000 40.0 %
4121 Allowances 6,600 3,554 3,802 13,200 9,398 247.2 % 4124 Leave Cashout 69,709 95,295 0 0 0 0.0 %
4131 PERS 624,356 539,214 517,917 560,072 42,155 8.1 % 4132 Group Insurance 325,569 304,177 359,661 358,275 (1,386) (0.4) % 4133 Medicare 41,424 31,858 46,494 51,435 4,941 10.6 % 4135 Worker's Compensation 7,078 16,685 28,301 26,317 (1,984) (7.0) % 4138 Deferred Comp-Employer 12,353 12,058 15,327 15,150 (177) (1.2) % 4139 PARS 17,870 7,396 25,022 25,795 773 3.1 %
4141 Adjustments-Payroll 0 0 0 0 0 0.0 %
4143 Charged to CIPs 0 0 (3,000) (3,000) 0 0.0 %
4146 Short Term Disability 0 0 1,386 4,869 3,483 251.3 % 4161 Retiree Medical Reserve 88,360 16,386 12,358 15,853 3,495 28.3 % sub-total 3,989,645 3,125,350 4,176,440 4,568,922 392,482 9.4 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Budget Narrative and Summary
City of Milpitas • Recreation and Community Services 249 283
Item # 1.

SUPPLIES AND CONTRACTUAL SERVICES
4200 Community Promotion,Grant/
Loan 23,542 7,833 51,200 51,200 0 0.0 %
4210 Department Allocations 100,314 97,174 67,381 56,129 (11,252) (16.7) % 4220 Supplies 283,421 227,805 437,146 508,516 71,370 16.3 % 4230 Services 630,644 196,229 582,402 660,176 77,774 13.4 % 4240 Repair & Maintenance 0 0 1,600 1,600 0 0.0 %
4500 Training, Travel, &
Memberships 8,630 6,823 16,525 16,925 400 2.4 %
4600 Insurance,Settlemts&
Contingcy 1,560 240 1,980 1,980 0 0.0 %
sub-total 1,048,111 536,104 1,158,234 1,296,526 138,292 11.9 % TOTAL $5,226,707 $3,661,454 $5,334,674 $5,865,447 $530,774 9.9 % DOLLARS BY CATEGORY 2019-20
Actual
2020-21
Actual
2021-22
Adopted
2022-23
Proposed
FY 2023
Change $
FY 2023
Change %
Staffing
POSITIONS BY FUNCTION 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
Adult Sports 0.00 0.00 0.00 0.00 0.00
General Classes 1.00 1.00 1.00 1.00 0.00
Marketing 1.00 1.00 1.00 1.00 0.00
Performing Arts 0.00 0.00 0.00 0.00 0.00
Recreation Administration 8.00 8.00 7.00 7.00 0.00
Senior Services 4.00 4.00 3.00 3.00 0.00
Social Services 1.00 1.00 1.00 1.00 0.00
Special Events 2.00 2.00 0.00 2.00 2.00
Sports & Fitness 2.75 2.75 1.00 1.00 0.00
Youth Program 1.00 1.00 1.00 1.00 0.00
TOTAL 20.75 20.75 15.00 17.00 2.00
*3.75 FTEs are defunded (Public Service Assistant I/II, Recreation Services Asst IV, Office Assistant II, Recreation Services Supervisor) Budget Narrative and Summary
250 City of Milpitas • Recreation and Community Services 284
Item # 1.

Community Svc Eng & Inc
Admin 1.00 1.00 1.00 1.00 0.00
Director of Rec & Comm Svcs 1.00 1.00 1.00 1.00 0.00
Marketing Coordinator 1.00 1.00 1.00 1.00 0.00
Office Assistant II* 0.75 0.75 0.00 0.00 0.00
Program Coordinator 5.00 5.00 4.00 5.00 1.00
Public Services Assistant I/II* 3.00 3.00 2.00 2.00 0.00 Recreation Services Asst I/II 1.00 1.00 1.00 1.00 0.00
Recreation Services Asst III 2.00 2.00 1.00 2.00 1.00
Recreation Services Asst IV* 2.00 2.00 1.00 1.00 0.00
Recreation Services
Supervisor* 3.00 3.00 2.00 2.00 0.00
Sr Public Services Assistant 1.00 1.00 1.00 1.00 0.00
Total Positions 20.75 20.75 15.00 17.00 2.00
POSITIONS 2019-20
Adopted
2020-21
Adopted
2021-22
Adopted
2022-23
Adopted
FY 2023
Change
*3.75 FTEs are defunded (Public Service Assistant I/II, Recreation Services Asst IV, Office Assistant II, Recreation Services Supervisor) Expenditures by Function
Aquatics
$408,340

7.0%
General Classes
$378,712

6.5%
Marketing
$258,311

4.4%
Performing Arts
$79,900

1.4%
Recreation Administration
$1,826,566

31.1%
Senior Services
$690,909

11.8%
Special Events
$429,395

7.3%
Sports & Fitness
$576,099

9.8%
Youth Program
$1,044,928

17.8%
Social Services
$172,288

2.9%
Budget Narrative and Summary
City of Milpitas • Recreation and Community Services 251 285
Item # 1.

Budget Reconciliation
PRIOR YEAR BUDGET 15.00 $5,334,674 $0 $5,334,674
One-Time Prior Year Budget Adjustments
4th of July, 2021 Savings - Recreation 74,000 74,000
Restore Overtime and Non-Personnel
Expenditure Reduction Related to COVID-19 36,900 36,900 One-Time Prior Year Budget Adjustments 0.00 110,900 0 110,900 Adjustments to Costs of Ongoing Activities
Salary and Benefits 75,955 75,955
Senior Nutrition Meals Increase 46,870 46,870
Restore Program Coordinator (1/1/2022) 1.00 124,751 124,751 Temporary Staff Minimum Wage Increase 28,575 28,575
Equipment Replacement Amortization (11,252) (11,252)
Adjustments to Costs of Ongoing Activities 1.00 264,899 0 264,899 Total FY2022-23 Base Budget 16.00 $5,710,473 $0 $5,710,473 Service Level Changes
Community Engagement Program Staffing 1.00 62,085 15,466 77,551 Recreation and Community Services
Organizational Study 50,000 50,000
Part-time Staff Salary Enhancement 27,423 27,423
Total Service Level Changes 1.00 139,508 15,466 154,974 Total FY 2022-23 Budget 17.00 $5,849,981 $15,466 $5,865,447 Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
252 City of Milpitas • Recreation and Community Services 286
Item # 1.

Service Level Changes

1. Community Engagement Program
Staffing 1.00 $62,085 $15,466 $77,551
This action restores the previously defunded Recreation Assistant III with a modified list of duties in response to changes in service demands. As the pandemic continues to dissipate, Council has provided more referrals in the function area of engagement and inclusion such as the forthcoming opening of the Alviso Adobe Building this year, which necessitates the development and oversight of a Docent Program, community-collaborative programs like the Children’s Memorial Garden, Park Champions, and mural programs as well as the development of the cultural/historical program.

Performance Results

With the restoration of Recreation Assistant III, it will allow the department to timely execute plans for opening Alviso Adobe, implementing the new mural program and other Arts, Heritage and Cultural and Community Engagement-related events.

Impact if funding is not approved
If this action is not funded, some of these planning tasks would be distributed among other coordinators/ or continued by the Community Engagement and Inclusion Administrator as time allows. Consequently, high profile and Council referred projects would likely be delayed or eliminated.

2. Part-time Staff Salary Alignment $27,423 $0 $27,423
This action provides funding for temporary Recreation and Community Services (RCS) staff salary increases in response to minimum wage increases to retain experienced PT employees. RCS is increasingly unable to hire and retain part-time staff at the salary rates budgeted. Frequent staff turn-over and lengthy vacancies are making it difficult for the department to maintain its expected outstanding customer service.

Performance Results

The department will have additional funds available to provide merit increases needed to retain its most experienced staff and raise hiring salaries to be competitive in the market.

Impact if funding is not approved
If this action is not funded, the department can expect continued difficulty hiring and retaining qualified individuals for positions such as Building Attendants and Community Center Front Desk staff.

Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
City of Milpitas • Recreation and Community Services 253 287
Item # 1.

3. Recreation and Community Services
Organizational Study $50,000 $0 $50,000
This action provides for one-time funding of an organizational study for the Department of Recreation and Community Services (Department). The Council approved Parks Master Plan Update included a Department cost-recovery policy, which set the cost-recovery goals for certain services provided by the Department. This organizational study will focus on the effective and efficient delivery of these services and the current structure and staff complement.

Performance Results

The outcome of the Study is to develop a set of recommendations that will set up the Department for the successful delivery of these services.

Impact if funding is not approved
If this action is not funded, the Department will not be able to conduct an organizational study.

Total Service Level Changes 1.00 $139,508 $15,466 $154,974 Positions General Fund
Expenditures
Other Fund
Expenditures
All Fund
Expenditures
Budget Narrative and Summary
254 City of Milpitas • Recreation and Community Services 288
Item # 1.

Non-Departmental
Description
This category funds a variety of activities that are not specific to any one department. Personnel Services include expenditures not budgeted in the individual departments such as vacation and leave cashouts, benefit administration fees, and self-funded unemployment insurance. Supplies and Contractual Services include centralized copier costs for City Hall, utility payments and citywide tuition reimbursement. Sewer treatment plant maintenance and operation are funded in this category, as are all water purchases for the water fund. This category also funds debt service as well as equipment and vehicle expenditures.

Expenditure Analysis
Personnel Services Debt Services
$0.7 million will fund vacation and leave cashouts,
MOU contractual obligations, retiree medical
benefits and unemployment benefits, and also
incorporate a 2.7% vacancy factor in the General
Fund.
$1,196,800 scheduled to pay the Lease Revenue
Bonds $629,950 scheduled to pay the principal
and interest due on the 2017 Wastewater
Revenue Refunding Bonds for the sewer system
and interfund loan. $1,047,050 is the payment for
the principal and interest due on the 2019 Water
Bonds, and $1,791,325 is for the 2019
Wastewater Bond.

Services and Supplies Equipment Replacement
$6,882,265 is for Treatment Plant fees;
$3,900,893 is for gas, electric, and water utilities;
$20,139,597 is for water purchases; $1,699,496 is
for recycled water purchase. A total of $30,000 is
reflected in this function for citywide tuition
reimbursement. $2,265,662 is budget based on
preliminary estimate of the City's insurance
premium with PLAN JPA for the 2022-23 fiscal
year. $200,000 is also included for costs related to
a green vehicle lease program for 43 vehicles in
FY 2022-23 that do not currently have
replacement funding. All of these vehicles are 10
years and older and are proposed to be replaced
with hybrid and electric vehicles. $446,700 is also
included for the Citywide Rate Assistance
Program for Building and Planning fees and Water
and Sewer Utility bills.
$560,406 is for equipment replacement from
monies that are available in the Equipment
Replacement Fund.

Budget Narrative and Summary
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Grand Total General Fund(1)
Personnel Services
4119 Adjustments-Payroll ............................................................................... $0 $0 4124 Leave Cashout ....................................................................................... $700,000 $650,000 4131 PERS ....................................................................................................... 33,500 30,000 4132 Group Insurance ..................................................................................... 23,000 20,000 4136 Unemployment ....................................................................................... 203,000 200,000 4137 MOU Contractual Agreements ............................................................. 1,109,000 1,019,330 4141 Adjustments-Payroll ............................................................................... (2,385,205) (2,385,205) 4161 Retiree Medical Reserve ....................................................................... — — sub-total (316,705) (465,875)
Supplies & Contractual Services
4209 Rate Assistance Program ..................................................................... 446,700 446,700 4212 Vehicle Lease Charges ......................................................................... 200,000 200,000 4237 Contractual Services ............................................................................. 190,900 84,900 4239 Audit Fees ............................................................................................... 98,000 66,000 4241 Repair & Maintenance ........................................................................... 5,000 — 4242 Rents & Leases ...................................................................................... 339,000 300,000 4253 Plan JPA Attorney's Fees ...................................................................... 220,000 80,000 4254 Plan JPA Settlements ............................................................................ 171,500 76,500 4280 Elections .................................................................................................. 127,200 120,000 4421 Utilities-Gas ............................................................................................. 220,000 200,000 4422 Utilities-Electric ....................................................................................... 2,197,876 1,167,871 4423 Utilities-Water .......................................................................................... 1,477,517 1,304,000 4424 SFWD, Wholesale Water Purchase .................................................... 14,576,248 — 4425 SCVWD, Wholesale Water Purchase ................................................. 5,563,349 — 4426 Utilities - Solid Waste ............................................................................. 5,500 — 4427 Recycled Water Purchase .................................................................... 1,699,496 — 4429 Treatment Plant, M&O ........................................................................... 6,882,265 — 4509 Tuition Reimbursement ......................................................................... 30,000 24,000 4602 Cybersecurity, Liability, Property Insurance ....................................... 2,615,374 1,810,225 4610 Uncollectible Accounts .......................................................................... 150,000 50,000 4611 Collection Fees ....................................................................................... 22,000 7,500 4640 Unanticipated Expenditures Reserve ................................................. 1,140,000 1,140,000 sub-total 38,377,925 7,084,896
Debt Service
4701 Retirement of Principal .......................................................................... 1,805,000 470,000 4711 Interest Expense .................................................................................... 2,870,125 726,800 sub-total 4,675,125 1,196,800
Capital Outlay
4851 Vehicles ................................................................................................... 560,406 — 4873 Machinery & Equipment ........................................................................ 130,541 — sub-total 690,947 —
TOTAL $43,427,292 $7,815,821
(1) General Fund, Abandon Vehicle Abatement Fund, 1452 S. Main St Fund and administration funds of the former Redevelopment Agency. (2) Other Funds include Community Benefit Fund, Community Facility District Funds, Community Planning Fee Fund, Gas Tax Fund, Equipment Replacement Fund, Housing and Community Development Fund, Information Technology Replacement Fund, Law Enforcement Grant Funds, Light & Landscape Maintenance District Funds, Measure B Fund, Permit Automation Fund, Public Art Fund, and Solid Waste Services Fund.

Budget Narrative and Summary
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Housing Authority Other Funds (2) Capital Projects(3) Water Fund(4) Sewer Fund(5) $0 $0 $0 $25,000 $25,000
— — — 1,750 1,750
— — — 1,500 1,500
— — — 1,500 1,500
— — — 44,835 44,835
— — — — —
— — — — —
— — — 74,585 74,585
— — — — —
— — — — —
73,050 9,700 — 7,350 15,900
— 7,000 — 12,500 12,500
5,000 — — — —
— 39,000 — — —
— — — 40,000 100,000
— — — 25,000 70,000
— — — — —
— — — 10,000 10,000
— — — 720,005 310,000
6,000 — — 136,517 31,000
— — — 14,576,248 —
— — — 5,563,349 —
5,500 — — — —
— — — 1,699,496 —
— — — — 6,882,265
— — — 3,000 3,000
1,862 214,964 — 147,081 441,242
— — — 50,000 50,000
— — — 8,500 6,000
— — — — —
91,412 270,664 — 22,999,046 7,931,907
— — — 315,000 1,020,000
— — — 732,050 1,411,275
— — — 1,047,050 2,431,275
— 560,406 — — —
— 130,541 — — —
— 690,947 — — —
$91,412 $961,611 $0 $24,120,681 $10,437,767
(3) Capital Projects include Street Improvement Fund, Park Improvement Funds, General Government Capital Improvement Fund, Storm Drain Capital Improvement Fund and Transit Area Impact Fee Fund. (4) Water Fund includes Water Maintenance & Operations Fund, 2019 Water Bond Fund, Water CIP Fund, Water Line Extension Fund, and Water Infrastructure Replacement Fund.
(5) Sewer Fund includes Sewer Operations Fund, 2019 Sewer Bonds Fund, Sewer Fund CIP, Treatment Plant Construction Fund, 2017 Sewer Refunding Bonds, and Sewer Infrastructure Replacement Fund.

Budget Narrative and Summary
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Budget Narrative and Summary
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Capital Improvement Program Overview
On May 3, the City Council will hold a Public Hearing and consider adoption of the FY 2023-2027 Capital Improvement Program (CIP) for a total amount of $23,976,000. This summary section of the CIP by project category describes the Adopted Operating Budget.

The FY 2022-23 Capital Improvement Program funding in the amount of $23.9 million is $1.6 million more than the FY 2021-22 Adopted CIP of $22.3 million. Due to limited General Government funding, staff evaluated projects that had General Government funding and strategically funded projects in the current plan. The estimated 2021-22 Ending Fund Balance / 2022-23 Beginning Fund Balance for the General Government Fund is $10 million, of which $4.6 million is being used in the current plan. These funds will continue to be analyzed each year to maximize the public benefit for use of these funds.

The Capital Improvement Budget funding for FY 2022-23 by Project Category is as follows:

Community Improvement $5,094,000 21.2%
Park Improvement $1,580,000 6.6%
Street Improvement $8,540,000 35.6%
Water Improvement $1,815,000 7.6%
Sewer Improvement $6,947,000 29%
Storm Drain Improvement $0 0%
TOTAL $23,976,000
Project Category FY 2022-23 Adopted Budget Percentage of Total Noteworthy projects recommended for funding in FY 2022-23 includes Cardoza Park Softball Field Improvement; Street Resurfacing Project 2022-23; S. Milpitas Blvd. Vehicle Bridge at Penitencia Creek; Well Upgrade Project; and Montague Pedestrian Overcrossing at Penitencia Creek.

The Capital Improvement Budget was reviewed by the Planning Commission on March 23 to determine its conformance with the City’s General Plan. The Parks, Recreation and Cultural Resources Commission met on March 7 to review the park improvement projects for FY 2022-23.

The City is pleased to report the significant progress and completion of some major improvements this past year, including Alviso Adobe Media and Exhibits, Citywide LED Lighting Retrofit project; Facilities Water Fixtures Retrofit project; Fire Station 2 Replacement, General Plan 2040; McCandless Park Phase 1, Park and Recreation Master Plan Update; Radar Speed Feedback Signage and Beacon project and also keeping pace with the Annual Street Resurfacing and Minor Sewer System Improvements projects.

Capital Budget
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Item # 1.

The chart below provides an overview of the City’s anticipated capital improvement projects by category in FY 2022-23:

CIP Expenditures by Category (in Millions $23.9)
Community Improvement: $5.04M
21%
Park Improvement: $1.58M

6.6%
Streets: $8.54M

35.7%Water: $1.82M

7.6%
Sewer Improvement: $6.95M
29%
The funding for FY 2022-23 capital improvement projects, as shown by the chart below, is primarily from Sewer Treatment Fund, TASP Impact Fees, General Government CIP, Gas Tax Fund, SB1 RMRA, Meaure B, and Sewer Infrastructure Fund:

Funding Sources for 2022-23 CIP Projects (in Millions $23.9) Sewer Treatment Fund: $6.3M
26%
SB1 RMRA: $1.4M
6%
TASP Impact Fees: $3.6M
15%
Measure B: $1.8M
7%
Sewer Infrastructure Fund: $0.9M
4%
General Government CIP Funds: $4.6M
19%
Gas Tax Fund: $1.0M
4%
Other Funds: $4.3M
18%
Capital Budget
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Since the City’s budget is an annual budget, the Budget only incorporates funding for FY 2022-23 capital improvement projects. It should also be noted that while staff prioritizes and anticipates the longer-term funding needs for the next four years in the five-year CIP, years 2023 through 2027 are shown only for planning purposes and are not funded at this time.

The Capital Budget section of this document provides a summary of each project description grouped by project category and a 2023-2027 Capital Improvement Program Grand Summary of project expenses and funding sources. For further details on the capital improvement projects, a separate Five-Year FY 2023-2027 Capital Improvement Program prepared by the Engineering Department may be obtained at the Milpitas City Hall or the City’s website.

Capital Budget
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Capital Improvement Program Grand Summary
Project Expenses FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Total Community Improvement 5,094,000 3,335,000 2,460,000 2,235,000 3,050,000 16,174,000 Park Improvement 1,580,000 975,000 9,800,000 600,000 5,850,000 18,805,000 Street Improvement 8,540,000 34,856,000 9,756,000 26,541,000 7,641,000 87,334,000 Water Improvement 1,815,000 4,090,000 2,790,000 530,000 34,735,000 43,960,000 Sewer Improvement 6,947,000 7,060,000 11,590,000 6,535,000 3,230,000 35,362,000 Storm Drain Improvement 0 825,000 0 850,000 1,430,000 3,105,000 Total $23,976,000 $51,141,000 $36,396,000 $37,291,000 $55,936,000 $204,740,000 Funding Sources FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Total Community Facilities District 50,000 0 0 0 0 50,000
Community Planning Fees 200,000 0 0 0 0 200,000
Gas Tax Fund 973,026 900,000 700,000 700,000 600,000 3,873,026 General Government CIP
Fund 4,597,000 0 0 0 0 4,597,000
LLMD 11,000 11,000 11,000 11,000 11,000 55,000
Measure B 1,761,560 1,700,000 1,700,000 1,700,000 1,700,000 8,561,560 Midtown Park Fund 575,000 225,000 0 0 0 800,000
Park Fund 655,000 0 0 0 0 655,000
Permit Automation Fund 150,000 0 0 0 0 150,000
Public Art Fund 130,000 50,000 50,000 50,000 50,000 330,000 SB1 RMRA 1,444,414 1,500,000 1,500,000 1,500,000 1,500,000 7,444,414 Sewer Infrastructure Fund 909,000 7,060,000 11,590,000 1,150,000 250,000 20,959,000 Sewer Treatment Fund 6,300,000 0 0 0 0 6,300,000
Street Improvement Fund 300,000 0 0 0 0 300,000
TASP Impact Fees 3,643,000 15,410,000 10,000 1,410,000 33,480,000 53,953,000 Vehicle Registration Fee 500,000 500,000 500,000 500,000 500,000 2,500,000 Water Capital Surcharge 1,777,000 4,090,000 2,790,000 530,000 1,905,000 11,092,000 Sub Total $23,976,000 $31,446,000 $18,851,000 $7,551,000 $39,996,000 $121,820,000 External Financing FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Total Grants/Reimb./Developer
Fees 0 0 0 0 0 0
Wastewater Revenue Bonds 0 0 0 0 0 0
Water Bonds 0 0 0 0 0 0
Revenue Bond 0 0 0 0 0 0
Sub Total $0 $0 $0 $0 $0 $0
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Total No Funding Source 0 19,695,000 17,545,000 29,740,000 15,940,000 82,920,000 Total $23,976,000 $51,141,000 $36,396,000 $37,291,000 $55,936,000 $204,740,000 Capital Budget
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Fund Descriptions
The basic accounting and reporting entity for a City is a fund. A fund is "an independent fiscal and accounting entity used to record all financial transactions related to the specific purpose for which the fund was created".

Funds are established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

Funds used in government are classified into three broad categories: governmental, proprietary and fiduciary.

Governmental funds include activities usually associated with a typical state or local government’s operations (public safety, general government activities, etc.). Proprietary funds are used in governments to account for activities often found in the private sector (utilities, stadiums, and golf courses are prime examples). Trust and Agency funds are utilized in situations where the government is acting in a fiduciary capacity as a trustee or agent. The various funds are grouped in fund types and categories as follows:

Governmental Funds
Government Funds include activities usually associated with the governmental entities’ operations (police, fire and general government functions).

General Fund – The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The major revenue sources for this Fund are sales taxes, property taxes, unrestricted revenues from the State, fines and forfeitures and interest income.

Expenditures are made for general government activities, public safety, most street work and the other services described above.

Special Revenue Funds – Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. • Public Art Fund – was established to account for construction or acquisition of public art to expand opportunities for the City of Milpitas’ citizens to experience public art and enhance the quality of life in the community. The city dedicates 1.5% of eligible projects within the annual Capital Improvement Project expenditures to the acquisition and installation of public art. The expenditures will include, but not limited to, the cost of public art, its installation, maintenance and repair of artwork funded by this fund. • Gas Tax Fund – was established to account for the construction and maintenance of the street system in Milpitas. Financing is provided by the City’s share of state gasoline taxes. • Lighting and Landscape Maintenance District Fund – was established to account for assessments within a district. Revenue is used for servicing and maintaining the public landscaping and additional lighting for the district.
• Community Facility District Fund – was established to account for special taxes collected within the district to provide park maintenance and street landscape maintenance services, public safety. • Housing and Community Development Fund – was established to account for community development block grants and expenditures.
• Law Enforcement Services Fund – was established to account for the proceeds from the sale of assets which were seized in connection with drug related arrests made by the Allied Agency Narcotic Enforcement Team (AANET) of Santa Clara County and federal asset forfeiture funds received through the Equitable Sharing program. Shared funds must be used only for specified law enforcement purposes; funds are to be used to augment law enforcement budgets, not supplant them. This fund also accounts for the Supplemental Law Enforcement Services grant and expenditures.
• Solid Waste Services Fund – was established to account for landfill tipping fees allocated by Santa Clara County. The County allocates a fee of $1 per ton to each City to be used in relation to the State of California Waste Reduction Act. Revenue is used for the implementation of future waste reduction programs to meet the Appendix
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future State required landfill deposits percentage reduction. The fund also accounts for special charges built into garbage rates specifically for community promotions and household hazardous waste activities. These activities support the City’s ongoing efforts to meet State mandates to reduce waste. • Hetch-Hetchy Ground Lease Fund – Established to account for the lease payment to the City and County of San Francisco for the permitted use of the Hetch-Hetchy land. • Housing Authority Fund – was established to allow the City to aggressively plan and address aging of the Milpitas housing stock, limited amount of land, high costs of housing, continuous overcrowding and potential increase in unsanitary conditions. The establishment of a Housing Authority allows the City to improve the quality of life and standard of living for a substantial number of its residents.

Debt Service Funds – Debt Service Funds are used to account for financial resources to be used for the payment of principal and interest on governmental fund long-term debt. The City has the following outstanding bonds: 2015 Tax Allocation Bond and 2017 Wastewater Revenue Refunding Bonds.

Capital Projects Funds – Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds).
• Redevelopment Project – was established to account for the financing and construction activities in the redevelopment project areas. This fund is inactive as of 1/31/2012 due to Assembly Bill 1X26. • Street Improvement Fund – was established to account for the construction and maintenance of the street system in Milpitas. Financing is provided through State and federal grants. • General Government Fund – was established to account for the construction and maintenance of community improvements. Capital projects previously accounted for in the General Fund has been incorporated in this fund.
• Park Improvement Fund – was established to account for the construction and maintenance of City parks.

Financing is provided by a special parks improvement fee imposed on developments. • Transit Area Impact Fee Fund – was established to account for the financing and construction activities of infrastructure in the Transit Area Specific Plan.
• Storm Drain Improvement Fund – was established to account for the construction and maintenance of City storm drains. Financing is partially provided by fees imposed on developments Proprietary Funds
Enterprise Funds – Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the City is that the costs and expenses, including depreciation, of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the City has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The City operates the Water Utility and Sewer Utility enterprise funds.
• Water Utility Fund – was established to provide water services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, and billing and collection. • Sewer Utility Fund – was established to provide sewer services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, and billing and collection.

Internal Service Funds – Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost reimbursement basis.

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• Equipment Management Fund – was established to finance and account for the replacement of equipment used by City departments on a cost reimbursement basis. • Information Technology Replacement Fund – was established to finance and account for the replacement of information technology equipment used by City departments. • Permit Automation Fund – was established to finance and maintain the online permit development system.

Fiduciary Funds
Agency Funds – Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments.
• Employee Deferred Compensation Plan – was established to account for accumulated employee funds withheld and invested as provided by the Plan.
• Employee Benefit Fund – was established to account for self-insured employee dental plan, short term disability plan and MOU contractual agreements.
• Senior Advisory Commission Fund – was established to account for the fund raising activities of the Commission.

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Revenue Descriptions
The City of Milpitas provides many services to its residents such as Police, Fire, Parks, Recreation, etc. These services are not without cost to the taxpayer. It is the task of City Officials to produce the necessary revenue to satisfy the ever-growing demand for local services.

The City of Milpitas receives revenue from many sources to offset the costs of its operations. Revenue is received from sales taxes, property taxes, and many other sources. For each fiscal year, the City’s revenues are estimated conservatively and, therefore, actual revenues received often exceed the estimated projections. This section will describe the major revenue sources available to the City. The Summary of Current Revenues by Fund will provide a more detailed breakdown of all revenues. The major revenue sources are as follows:

Property Taxes
Property Taxes – Property tax is imposed on real property (land and permanently attached improvements, such as buildings) and tangible personal property located within the City. The tax comprises one percent of the assessed value of the property. The assessed value of real property appraised by the County Assessor in the 1975-76 assessment role value adjusted after 1975 by a two percent inflation factor per year. When property changes hands or new construction occurs, it is reassessed at its current market value. Included in Property tax revenue is Excess Educational Revenue Augmentation Fund (ERAF), which is the mechanism that moves state funds through the County system. The California Legislature created ERAF in 1991 to reduce state general fund spending on schools, in which a portion of property tax revenue goes to ERAF to support local school districts.

When the amount contributed to ERAF is more than the minimum cost of funding local schools, excess funds are returned to the County, Cities, and Special Districts. Redevelopment Property Tax Trust Fund (RPTTF) is property tax revenue which had previously been paid to each Redevelopment Agencies (RDA), but is now required to be transferred to a new trust fund, RPTTF, as all RDAs were dissolved.

Sales Taxes
Sales and Use Tax – Sales and use tax is imposed on retailers for the privilege of selling, at retail, within the City limits. This tax is based on the sales price of any taxable transaction of tangible personal property. The Bradley-Burns Uniform Local Sales and Use Tax Law, adopted in 1955, extends the authority to impose local tax to counties. One percentage point of the sales tax collected by the State Board of Equalization is allocated back to the City for general purposes. This revenue is placed in the General Fund for unrestricted uses.

Operative April 2021, Measure F, a Transaction and Use tax, will enact a ¼ cent local sales tax for eight years, with locally-controlled funding that cannot be taken by the state.

Transient Occupancy Tax
Transient Occupancy Tax – The Transient Occupancy Tax in Milpitas is a fourteen percent (14%) tax on the cost of a hotel room and imposed on "transients" who occupy a room or rooms in a hotel, inn, motel, tourist home or other lodging facility within the City’s limits.

Franchise Fees
Franchise Fees – A Franchise Fee is imposed on various utilities and organizations which permits them to use and operate those facilities within the City. In Milpitas, franchise fees are charged for Electric, Gas, Garbage, Nitrogen Gas and Cable Television franchises.

Other Taxes
Business License Tax – A Business License Tax is imposed on businesses for the privilege of conducting business within the City. Fees are based on bracketed structures according to the type of business. The fee Appendix
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structures are as follows: average number of employees, number of units or rooms, number of vehicles or a flat fee.

Motor Vehicle In-Lieu Tax – The Motor Vehicle In-Lieu Tax is collected by the State Department of Motor Vehicles through its vehicle registration program in-lieu of a City personal property tax on motor vehicles.

Gas Tax – The State Gas Tax is derived from State of California taxes on gasoline purchases and is allocated, on a share basis, to cities. The Gas Tax revenues are broken down into Sections 2106, 2107 and 2107.5.

Sections 2106 and 2107 funds are restricted to the construction, improvements and maintenance of public streets. Section 2107.5 funds are restricted to engineering costs and administrative expenses with respect to City streets.

Licenses, Permits & Fines
Building Permits – The City requires that building permits be obtained to ensure that structures meet specific standards as identified in the Municipal Code. The City requires various construction permits for activities such as the installation of electrical and plumbing. The City charges a fee for issuing these permits in order to recover the costs incurred.

Fire Permits – The Milpitas Municipal code requires permits be obtained and inspections conducted to ensure activities regulated by the fire code meet specific standards for the protection of life, property and the environment. Activities include: high piled combustible storage, hazardous materials, assembly, and life safety inspections of licensed facilities, apartments, and hotels and motels.

Vehicle Code and Other Court Fines – The City receives a portion of all fines assessed, in Milpitas, for infractions of the State of California Vehicle Code and may receive other court fines as directed by the County, State or Federal Courts.

False Alarm Fees – Currently the Milpitas Municipal Code provides that a property may have two false alarms in a one-year period. Subsequent false alarms, within that period, are assessed a service charge that can increase from $300 to $900 depending on the number of alarms.

Booking Fees – Counties within California are authorized to charge a "criminal justice administrative fee" intended to cover the "reimbursement of County expenses incurred" for booking and processing of arrested persons who are brought to the County jail for booking or detention. In return, Judges may pass along the City’s costs to the offender as part of their court-ordered restitution.

Use of Money and Property
Interest on Pooled Investments – Interest income is earned as the City invests its idle funds in various investment instruments. The goal of the City regarding investments is to ensure the safety of each investment and maintain liquidity while achieving a fair rate of return - safety, liquidity and yield - in that particular order.

Intergovernmental
Federal, State and County Contributions – Senior Nutrition fees are one example of a County contribution that is reimbursed to the City from the County of Santa Clara for lunches provided to senior citizens.

Miscellaneous Grants –
• Community Development Block Grant –The Housing and Community Development Block Grant (CDBG or HCD) program was designed by the Department of Housing and Urban Development (HUD) to revitalize low and moderate income areas within a city. The use of CDBG funds is restricted by specific provisions and is managed by the Housing function.
• Public Safety Grants - The City is currently receiving multiple public safety grants including: Supplemental Law Enforcement Services Grant, Local Law Enforcement Block Grant, and Justice Assistance Grant. Future grant spending will be designated for vehicles, equipment and technology improvements.

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• SB90 - The law in the State of California provides for the reimbursement of costs incurred by local agencies for costs mandated by the State. Costs mandated by the State means any increased costs which a local agency is required to incur after July 1, 1990, as a result of any new statute enacted after January 1, 1975, or any executive order implementing such statute which mandates a new program or higher level of service in an existing program.

Charges for Services
Charges for Current Services – All City’s basic service charges are recorded at the department or division levels that are associated with specific governmental and enterprise activities. These service levels are: General Government, Planning, Fire, Police, Recreation, Building and Public Works. This is a GASB 34 requirement.

Planning Fees and Sale of Maps and Documents – Included in these fees are a range of service charges for staff responses to inquiries from the public to review and interpretation of complicated planning and zoning ordinances. Also included are reproduction costs associated with maps and documents from all functions within the organization.

Recreation Fees – Recreation fees include user program fees for preschool, after-school, teen and summer camp programs; swimming lessons; special events and youth and adult recreational classes.

Rents and Concessions – Rental fees are charged for the private use of City facilities. Rental facilities include the Community Center, Sports Center, Senior Center, the Jose Higuera Adobe and parks throughout the City.

Utility Charges – Utility service charges for water and sewer, based on volume and flat meter charges.

Other Revenues
Development –
• Park Development Fees - The Park Development Fee is paid by a developer or subdivider for park or recreation purposes, in-lieu of the dedication of the land. • Treatment Plant Fees - Treatment Plant fees are payment for the purchase of waste water treatment capacity rights. The fee is measured in gallons per day, and the higher the usage, the higher the fee. All fees collected are used for Capital Improvement Projects or for Capital Operating Costs at the San Jose/Santa Clara Water Pollution Control Plant or within the City.
• Traffic Impact Fees - A Traffic Impact Fee is an exaction from a developer to mitigate traffic impacts associated with the development of the subject property. These fees can be dictated by ordinance or by documentation in a Traffic Impact Analysis (TIA) and are then conditions of approval for the development. • Transit Area Specific Plan (TASP) Impact Fees - TASP impact fee is an exaction from a developer to mitigate impacts associated with the development of the TASP area. There are four different rate structures based on the development type: residential, office, hotel and retail. The fee is calculated using a blended rate, which on average consists of 16% street improvement, 12% sewer, 13% water, 40% community and park improvement, 12% traffic mitigation and 7% for other miscellaneous categories.

Reimbursements -
• AVASA - Beginning in 1996, the State of California, through the Abandoned Vehicle Abatement Service Authority, began reimbursing cities for vehicle abatement activities based on a per vehicle cost. The State reimbursement varies from year to year based on the number of vehicles claimed by all participating cities.

Miscellaneous -
• Solid Waste - Currently the Solid Waste function has two very different revenue streams. The first AB939 is collected by the County as a Tipping Fee at the Landfill and reimbursed to the City on a quarterly basis. The purpose of this fee is to encourage achievement of the State’s landfill reduction goal. The second fee is paid by the solid waste customers, incorporated in user rates, and is specifically earmarked for community education and the Household Hazardous Waste programs.

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Expenditure Descriptions
Personnel Services
Salaries and Wages
Permanent – Salaries for full time and part time permanent employees.

Temporary – Salaries full time and part time employees who are hired in temporary or substitute basis.

Overtime – Amounts paid to employees for work performed in addition to the normal work period. Hours work in excess of 40 hours per week.

Charged to CIPs – Budget amount to account for payroll costs that will be charged to the Capital Improvement Projects.

Allowances / Leaves
Allowances – Amounts paid to employees who are entitled to allowances such as car, telephone, uniform, special licenses, canine, motorcycle, SWAT, pager and bilingual pay.

Leave CashOut – Amounts paid to employees for hours cashed out from sick or vacation time banks.

Accrued Leave – To record year-end adjustments of accrued vacation according to the Generally Accepted Accounting Principles (GAAP).

Benefits
PERS – Amounts contributed to the Public Employees’ Retirement System (PERS) plan for its employees.

Group Insurance – City of Milpitas’ share of any insurance coverage for its employees such as Medical, Dental, Vision, Life Insurance, Long Term Disability and Short Term Disability.

Medicare-Employer’s Contribution – City of Milpitas’ share of the Federal Medicare contributions for its employees.

Worker’s Compensation – Amount allocated to pay for worker’s compensation claims made by employees.

MOU Contractual Agreements – Amounts paid according to negotiated MOU agreements.

Deferred Compensation – Employer Contribution - Contributions made to the employees’ deferred compensation plan.

PARS – Amounts contributed to the Public Agency Retirement System-Alternate Retirement System (PARS-ARS) plan for temporary employees not in the PERS system. This is an alternative to the Social Security System.

Adjustments - Payroll
Adjustments – Payroll - To record year-end payroll adjustments in accordance to the Generally Accepted Accounting Principles (GAAP), i.e., Accrued Payroll which reflects salaries and wages earned by employees as of June 30 but not paid until July.

Vacancy Factor – Budget amount to account for vacant positions.

Overhead – Private Jobs (PJs) contractual Labor and Payroll - A charge made to a developer account to defray the direct and indirect overhead costs associated with an employee performing duties or providing services to the fund or account charged.

Salary Reduction – Budget amount to account for reduced funding.

Appendix
City of Milpitas 269
303
Item # 1.

Retiree Benefits
Retiree Medical Reserve – Amount allocated to fund a portion of the outstanding retiree medical benefits liability.

Retiree Medical Payment – Payment of the outstanding retiree medical benefits liability.

Retiree Medical Reimbursement – Reimbursement from California Employer Benefit Trust fund for retiree medical payment.

Supplies and Contractual Services
Community Promotions, Grants and Loans
Community Promotions – Public relations activities that are aimed to contribute to the progress or growth of the community.

Community Promotions CC Allocated – Public relations activities for progress or growth of the community allocated by the CITY COUNCIL.

Community Promotions CC Unallocated – Public relations activities for progress or growth of the community not yet allocated by the CITY COUNCIL.

Cultural Arts Grants – Financial assistance provided for Cultural Arts programs or activities.

Miscellaneous Grants – Financial assistance provided for miscellaneous grant programs.

Sports Grants – Financial assistance provided for Sports programs or activities.

Housing Rehab Loans – Amount loaned to homeowners for housing rehabilitation purposes under the Community Development Block Grant (CDBG) program.

CDBG Grants – Payment to subrecipients of CDBG Grants.

Miscellaneous Loans – Loans other than for housing rehabilitation purposes under the CDBG program.

Department Allocations
Equipment Replacement Amortization – Department’s share of the fund being set aside for the purpose of replacing equipment in the Equipment Replacement Program.

Supplies
Generally, these are items that are consumed.

Office Supplies – Purchased for office use. Examples are pen, folders, drinking water, and coffee.

Departmental Supplies – Items that are used for the programs of the department. Examples are food for the Senior Center, sports supplies for the Recreation Department, target supplies for the Police Department, and tools for Public Works.

Maintenance Supplies – Used for repairs and maintenance of equipment or building. Examples are bolts, screws, nails, janitorial supplies, etc.

Health & Safety Supplies – Used for health and safety purposes. Examples are goggles, safety shoes, hard hats, gloves, first-aid kits, VDT glasses, etc.

Services
Generally, amount paid for services rendered by organization or personnel not on the payroll of the City of Milpitas. Although a product may or may not result from the transaction, the primary reason for the purchase is the service provided.

Appendix
270 City of Milpitas
304
Item # 1.

Advertising – Costs of media services and associated costs. Media advertising includes magazines, newspapers, radio and television programs, direct mail, exhibits, and the like. Examples are advertising for such purposes as personnel recruitment, legal ads, new and used equipment and sale of property, and City Clerk notices of meetings.

Blueprinting – Usually are services provided to blueprint the engineering plans.

Contractual Services – Services rendered by organizations or personnel not on the payroll of the City of Milpitas under a contract or an agreement. Payment of fees to contractors to acquire license or permits for the City of Milpitas should be recorded in this account. NOTE: Copier charges should be paid from this account.

Contractual Services-PJ’s Labor – Rendered by organizations or personnel not on the payroll of the City of Milpitas under a contract or an agreement for its Private Jobs (PJ). Examples are carpentry, painting, and other labor for the City’s Private Jobs.

Audit Fees – Professional services provided by Certified Public Accountants (CPA) firms for the purpose of auditing the City’s financial statements. Example is the Comprehensive Annual Financial Report.

Street Sweeping – Includes sweeping and washing streets, flushing gutters and underpasses and collecting and disposing of debris from streets and public roadways.

Repair & Maintenance
Repair & Maintenance – Repair and maintenance services provided by personnel not on the payroll of the City of Milpitas. This includes repair and maintenance of the City’s buildings and equipment. Examples are vehicular, equipment, and/or facilities repair and maintenance. Cost of warranty obtained after the original equipment warranty expired or any warranties obtained after the purchase of the equipment should be recorded to this account. Annual maintenance agreement or contract on equipment should be recorded here.

Rents and Leases – Costs for renting or leasing land, buildings, equipment and vehicles for either temporary or long range use by the City of Milpitas. Agreement should not have an option to buy or to acquire ownership at the end of the lease term. (Please see Capitalized Leases, also).

Contributions to Non-City owned Capital Assets – Costs incurred in capital improvement projects that the City does not have the ownership of the property. These costs generally incurred by the City for the benefits of the residents in Milpitas but the property is owned by another government agency. For example, the City spent money to improve the I880/237 intersection to improve the quality of life for local residents, but the City does not own the intersection. CalTrain owns the intersection. GASB 34
Legal Services
Retainers and Fees – Fees paid to engage the services of a professional adviser such as an attorney.

Pooled Liability Assurance Network Joint Powers Authority (Plan JPA) Attorney’s Fees – Fees paid to Plan JPA attorney.

Pooled Liability Assurance Network Joint Powers Authority (Plan JPA) Settlements – Costs paid to Plan JPA for settling insurance claims.

Litigation – Costs incurred to settling litigation or lawsuits. This should include costs incurred during legal proceedings.

Elections
Elections – Includes expenditures for holding general primary and special elections.

Communications
Communications – Except the categories below, any services provided by persons or businesses to assist in transmitting and receiving messages or information.

Appendix
City of Milpitas 271
305
Item # 1.

Phone-Local – Basic monthly telephone charges. Computer Data Lines - Charges for computer data lines services such as Internet user’s fees and charges, T1 line monthly charges, and web site charges, if any.

Phone-Long Distance – Long distance telephone charges.

FAX – Fax line fees and charges.

Pagers – Pagers monthly fees.

Cellular Phones – Fees and charges associated with cellular telephones.

Fire Alarms – Fees and charges for usage and maintenance of fire alarm lines.

Police Alarms – Fees and charges for usage and maintenance of police alarm lines.

Utilities
Utilities – Expenditures for energy except gas, electric and water. Examples are bulk oil normally used for heating, and bulk gasoline or diesel purchase for non-transportation use. Gasoline or diesel purchased for transportation purposes should be charged to account 4223 departmental supplies.

Utilities-Gas – Gas purchased from a public or private utility company for the City of Milpitas facilities consumption.

Utilities-Electric – Electricity purchased from a public or private utility company for the City of Milpitas facilities consumption.

Utilities-Water – Water purchased for the City of Milpitas facilities consumption. Drinking water bottles purchased should be charged to account 4221 Office Supplies.

Utilities - Water Purchase
SFWD, Wholesale Water Purchase – Water purchased from San Francisco Water Department (SFWD) for resale to the residence and businesses being served by the City of Milpitas.

SCVWD, Wholesale Water Purchase – Water purchased from Santa Clara Valley Water District (SCVWD) for resale to the residence and businesses being served by the City of Milpitas.

Recycled Water Purchase – Purchased for resale to the businesses being served by the City of Milpitas. For irrigation use only.

Treatment Plant
Treatment Plant, M & O – City of Milpitas waste water treatment fees paid to City of San Jose -Maintenance and Operation.

Training, Travel & Memberships
Membership and Dues – Amount paid for an employee or group of employees of the City of Milpitas to be a member of an organization.

Professional Licensing – Fees paid for an employee of the City of Milpitas to acquire or renew a license or permit in order for him/her to exercise his/her profession. Examples are CPA and Civil Engineer licenses.

Training/Registration – Fees paid for a City of Milpitas employee to enroll or attend a seminar, workshop, and/or training class.

Lodging/Travel – This is the actual amount paid for a place to stay while a City of Milpitas employee is conducting out-of-the-office business (e.g. hotel accommodation). Airfare and other transportation expenses, except use of own vehicle, such as shuttle to airport and hotel, and car rental are recorded in this account. This is associated with approved travel request.

Appendix
272 City of Milpitas
306
Item # 1.

Meals for Meetings – Expenses incurred to provide food in conducting department and/or business meetings.

Restaurant meals eaten off site must be approved in advance according to the SOP 8-1.

Per Diem – Specified daily meals, incidental expenses, and/or lodging allowance in lieu of actual meal(s), and/or lodging expenses incurred while conducting out-of-the-office business. This is associated with approved travel request. Per Diem rates vary according to your business destination. City of Milpitas’ per diem rates are according to the Maximum Federal Per Diem Rates for Travel in Continental United States (CONUS). Please call the Finance Department or refer to the current IRS Publication 1542 for the appropriate per diem rates of your business destination.

Mileage Reimbursement and Parking – Payment to an employee for the use of his/her vehicle to conduct out- of-the-office business including parking costs. According to the City of Milpitas SOP 6-1, Section 2d, "Mileage reimbursement shall be at the rate as set by the Internal Revenue Code and shall be reimbursed for the distance between home and destination or work and destination, whichever is less." Please call the Finance Department or refer to the current IRS Publication 535 for the mileage rate.

Tuition Reimbursement – Amount reimbursed by the City of Milpitas to any employee qualifying for tuition reimbursement, based upon the City’s policy. Please refer to the Memorandum of Understanding of each bargaining unit.

Commissions & Boards
Conference Expenses – For COMMISSIONS and BOARDS USE ONLY. This is for conference related expenses.

Non-Conference Expenses – For COMMISSIONS and BOARDS USE ONLY. This is for nonconference related expenses.

Insurance, Settlements & Miscellaneous
Liability – Payments of insurance premiums for general liability coverage, public official bond, administrative and property coverage.

Uncollectible Accounts – Portion of a receivable not expected to be collected.

Collection Fees – Fees paid to a collection agent (bureau) for collecting monies owed the City from unpaid receivables. The fees are usually based on a percentage of the collected total amount.

Unanticipated Expenditures Reserve – Items that may become liabilities as a result of conditions undetermined at a given date, such as guarantees, pending lawsuits, unsettled disputed claims. Includes reserve 1% of the General Fund Budget per the budget resolution, adjusted annually.

Loss on Sale – Records the loss incurred on sale of property or equipment.

Depreciation and Amortization
Depreciation & Amortization – Depreciation is the portion of the cost of a fixed asset charged as an expense during a particular period. Amortization is the portion of the cost of a limited-life or intangible asset charged as an expense during a particular period.

Adjustment - Service and Supplies
Reduced Funding – Budget amount to account for reduced funding.

Appendix
City of Milpitas 273
307
Item # 1.

Debt Service
Principal
Expenditures for periodic principal maturities of general obligation bonds or payments of principal on general long- term debt other than bonds.

Retirement of Principal – Payments of Bond Principal.

Principal – COP – Payments of Bond Principal - Certificate of Participation.

Principal – Advance – Payments of other debt principal - Advanced fund.

Interest
Periodic interest on general obligation bonds or interest payments on general long-term debt other than bonds.

Interest Expense – Bond interest payments.

Interest – COP – Bond interest payments - Certificate of Participation Interest – Advance – Other debt interest payments-Advanced fund.

Contractual Obligation
Fiscal Agent’s fees are payments made to financial institutions for services rendered in paying interest and redeeming debt at maturity.

Cost of Issuance – Payments to bond underwriters, legal fees and other costs associated with bond issuance.

Premium-Bond Prepayment
Premium-Bond Prepayment – Fees (redemption premium) paid for early bond call (bond or any portion of its principal redeemed and paid in advance of maturity).

Capital Improvements
Capital Improvements
Capital Improvements – Expenditures for the acquisition or construction of major capital facilities that do not fall under any of the Capital Outlay > $5,000 categories. This is usually the accumulation of the Capital Improvement Project’s (CIP) expenditures by phase. Though CIPs expenditures are coded in detail, the result rolls up to this account by phase.

Capital Outlay > $5,000
Capital Outlay > $5,000
Items to be recorded to the object and detail codes under this category should have acquisition cost of $5,000 or more per unit and have a useful life of two or more years. Acquisition cost means the net invoice unit price of an item including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Ancillary charges such as taxes, duty, protective in-transit insurance, freight, and installation; and, extended warranties when purchased at the time of the equipment can be included in the acquisition cost. Please see FIXED ASSETS INVENTORY CONTROL and CAPITALIZATION POLICY, also.

Milpitas City CouncilMay 10, 2022

Milpitas City Council
May 10, 2022