Milpitas City Council
June 3, 2025

Letter of Transmittal

xx City of Milpitas
capitalize on existing non-residential property data to better reflect the economic activity of local businesses. To move forward, it is recommended the City Council direct staff to analyze potential tax increase options, present this analysis for Council consideration and approval, conduct a community survey and engage communications and/or other contractual services, with the intention to placing a respective voter measure on the November 3, 2026 ballot. This one-time proposal covers the cost for economic and communication consultants, along with the anticipated election costs.

5. Internship Program ($17,510) ...................................................................................................... One-Time This proposal recommends funding a summer Law Clerk Internship to support the Office of the City Attorney. The intern will conduct essential research and provide recommendations on document templates and municipal code updates, facilitating the timely completion of important long-term projects. By investing in this position, the City can not only ensure the efficient progression of these initiatives but also strengthen the Milpitas brand within the municipal law community.

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.

Changes to Fiscal Policies
The City’s Fiscal Policies are organized in the following categories: 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. The City Council has also adopted separate debt and investment policies consistent with State law.

This Proposed Budget is balanced and remains focused on sound City fiscal policies and protecting existing reserves. These reserves provide some flexibility on an operating surplus, if any, and consistent with Council direction, continue to fund the City’s Strategic Property Acquisition Reserve (SPAR). Staff does not propose any changes to the Fiscal Policies as part of the FY 2025-26 budget.

Reserves
This budget protects the City’s reserves and balance sheet position by not utilizing the contingency reserve or budget stabilization reserve to fund FY 2025-26 appropriations. Specifically, as of the audited FY 2024 reserve balances, the City will retain $75.9 million of General Fund reserves as shown below in the “committed” category of $23.7 million, “assigned” category of $7.4 million, “unassigned” category of $49.2 million, and Section 115 Pension Irrevocable Trust of $38.0 million* (as of December 31, 2024), which is held separately in a trust fund. Table 6 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, 2023), which is presented separately from the General Fund in the ACFR.

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City of Milpitas xxi
Table 6 – General Fund – Fund Balance FY 2019-20 to FY 2023-24 (Audited balances, $ in Millions) ($ in Million) FY2020 FY2021 FY2022 FY2023 FY2024
PERS stabilization† $33.9 $2.8 $5.1 $6.1 $8.0
Artificial turf replacement $1.2 $1.4 $1.7 $1.9 $1.9
Technology replacement $2.0 $2.0 $2.0 $2.0 $0.4
Facilities replacement $7.0 $7.0 $7.0 $7.0 $6.2
Community investment program $0.0 $0.0 $0.0 $0.0 $7.2
Subtotal Committed $44.1 $13.2 $15.8* $17.0 $23.7

Change in investment market values $1.1 $0.0 $0.0 $0.0 $0.0 Uninsured claims payable $2.0 $2.3 $2.3 $2.8 $2.9
Contracts $3.0 $2.4 $2.5 $3.6 $2.3
Other assigned $0.0 $1.8 $1.2 $0.5 $2.2
General government capital projects $0.0 $0.0 $0.0 $0.0 $0.0 Subtotal Assigned $6.1 $6.5 $6.0 $6.9 $7.4

General Fund Contingency Reserve $17.3 $18.3 $18.5 $19.8 $20.8 Budget stabilization $17.1 $18.3 $18.5 $19.8 $20.8
Future deficit $0.0 $1.5 $1.5 $1.5 $1.5
ERAF Reserve $0.0 $1.2 $1.2 $2.3 $3.6
SPAR (Strategic Property Acquisition Revenue) $0.0 $0.0 $0.0 $0.7 $0.7 Unassigned $0.0 $0.2 $0.3 $0.7 $1.8
Subtotal Unassigned $34.4 $38.3 $40.0 $44.8 $49.2

Total fund balances $90.9 $54.1 $61.3 $63.9 $75.9
†General Fund of $33.9 million of PERS stabilization was put into a Section 115 Pension Trust on June 30, 2021 at Council’s direction.

Major Development Activities in the City
Milpitas Metro Specific Plan – The Milpitas City Council unanimously adopted the Milpitas Metro Specific Plan (Metro Plan) on February 7, 2023. The Metro Plan updates the original 20-year Transit Area Specific Plan (TASP) and incorporates changes to address current and future economic and social conditions that have evolved since the original plan was adopted in 2008. As described in the Plan document: “The Milpitas Metro area is a unique and vital hub in Silicon Valley. It is a major transportation crossroads, including transit stops served by BART, VTA light rail, and bus, and it includes major roadways and highway access. It is also emerging as Milpitas’s densest urban center, featuring new multifamily development, a range of shopping opportunities, and a planned Innovation District.

Milpitas Metro will be an urban, future-forward center that supports a balanced mix of housing, retail, and employment uses; provides safe multimodal connections and public spaces; and is distinguished by urban design standards that create a visually memorable environment.” The expansion of the Metro Plan area eastward toward Interstate 680 will include approximately 75 acres on both sides of Montague Expressway for future development of an Innovation District. This area will focus primarily on technology and research and development that provides employment opportunities and revenue generation for the City. The Office of Economic Development will commence business attraction efforts focused on artificial intelligence, biosciences, and automotive technology sectors. In preparation for targeted business attraction efforts,

Letter of Transmittal

xxii City of Milpitas
staff is developing the Innovation District Branding Initiative in partnership with local marketing firm Navajo Company. This area may also include some existing and future housing in a mixed-use environment within proximity to jobs and transit. The Metro Plan also envisions future hotel and hospitality uses within the Innovation District as demand emerges. In addition, the Metro Plan recognizes the great potential for future evolution of the 99-acre Great Mall site into a wider range of mixed uses. The Plan anticipates that both the City and the property owner of the Great Mall will want to plan in more detail how future redevelopment of the Great Mall could occur in the best interests of both parties, retaining commercial services and enhancing the value of this land, such that a comprehensive Development Agreement (DA) would be a likely path to follow up on how to implement the Metro Plan in that area following Metro Plan adoption. The Metro Plan establishes a framework articulating the initial expectations of the City relative to the redevelopment of the site and will serve as a strong foundation for a future Development Agreement.

Finally, the Metro Plan recognizes the great value of the Milpitas Transit Center and its connection to regional BART service to support significant commercial and employment development. The Metro area, particularly with the eastward boundary expansion of the Innovation District, can add significant capacity to the original commercial opportunity by adding more commercial/employment space. It is anticipated that such development could bring new high-paying jobs to the City, particularly providing new opportunities for Milpitas residents. Significant job growth near new and existing residential development can also be expected to reduce VMT and enhance the City’s overall fiscal and environmental sustainability.

The City created new zoning districts to implement the land use designations identified in the Metro Plan and facilitate redevelopment. The City is also preparing an update to the Transit Area Development Impact Fee (TADIF) based on changes in property valuations and the proposed public improvements in the Metro Plan. The TADIF will be used to fund public improvements such as streets, utilities, pedestrian facilities, and parks and open space as the Metro area continues to redevelop.

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 and a team of consultants from Ascent Environmental teamed up to kick off the long-awaited update of the Midtown Specific Plan. This effort has identified four primary focus areas: South Main Street between Sinnott Lane and Curtis Ave., the area surrounding the Serra Way and South Main Street intersection, Calaveras Blvd. between I-880 and S. Abbott Ave., and the I-880 frontage along Abbott Ave and Thompson Court. These four inter-related areas form an important gateway into the City via Highway 237 and South Main Street, and the updated Midtown Plan has been rebranded as the Milpitas Gateway-Main Street Specific Plan in recognition of the significance of this area as a primary entrance to the city. 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 well underway on the Plan with completion of the existing conditions report, analysis of the area’s urban form, a detailed market study, community outreach, and

Letter of Transmittal
City of Milpitas xxiii
preferred Plan strategies. The Draft Plan and environmental analysis are in progress. The Plan’s estimated completion date is Summer 2025.

Economic Development Strategy – Economic Development and Job Growth are key City Council priorities, and both are vital to the health of the local economy and revenue generation. The City Council adopted the Economic Development Strategy and Implementation Actions report (EDS) on May 5, 2020, to serve as a road map to grow and diversify the City’s economy, support businesses and workers, and improve quality of life in Milpitas. The EDS is a five-year strategy and implementation action plan that sunset on May 5, 2025 and is approximately 84% complete with various other implementation actions in progress. The 64 implementation actions are supported by 7 topic areas dedicated to creating a resilient and sustainable local economy.

The Office of Economic Development has executed many implementation actions of the EDS. Accomplishments include business attraction, retention and expansion with Amazon, Apple, Asteelflash, BD Biosciences, Falcon X, Flex, Legoland Discovery Center, Rivian, Smart Modular Technology, SocioNext, and Tarana Wireless, to name a few. The Office of Economic Development has commenced the Innovation District Branding Initiative with a project scope including naming concept, brand development and messaging, marketing and promotional materials, and a website dedicated to the Innovation District.

Staff also hosted a successful eighth annual Manufacturing Day event in partnership with BD Biosciences and Corsair Gaming, and the Milpitas Unified School District. More than 100 guests including students, teachers, City and school district officials and community members participated in facility tours, product and process demonstrations, and professional development Q&A sessions to educate and inform high school students about manufacturing careers. Successful workforce development programs implemented include Manufacturing Day events and the Milpitas MyPlan for residents seeking advice focused on personal assessments, career exploration, resume development, job search strategies, interview fundamentals, and communication essentials that resulted in participants starting and interviewing for new jobs. Staff has hosted various business resources workshops and trainings consisting of the following: Artificial Intelligence (AI) for Business, the inaugural EmpowerHer.ai Summit, Small Business Resources Workshop with Senator Aisha Wahab's Office, international trade and commerce webinar series with Mission College, Access to Capital, Credit Restoration, etc.

Residential Development – The City continues to process new development projects in FY 2024-25. The City entitled significant multi-family residential projects, including modifications to a 206-unit residential development at 1355 California Circle. The project includes 131 market-rate townhomes and 75 affordable apartment units. The modifications will allow the applicant to partner with an affordable housing developer to build the affordable apartments. Within the Metro area, the City also entitled a 100 percent affordable 116-unit apartment development at 1300 South Main Street and a modification to a 361-unit mixed-use apartment building to add 38 apartment units.

Additionally, the City approved a proposal for a 43-unit townhouse development at 1905 Tarob Court, which includes 13 ground-floor accessory dwelling units (ADUs). The project is significant because it includes the connector street between Tarob Court with Sango Court, which will eventually connect to a new bridge over Penitencia Creek and create a direct connection from this neighborhood to the Milpitas Transit Center. The Planning Department is also reviewing proposals for a 134-unit townhome development at 600 Valley Way and a 272-unit townhome development at 1601 S. Main Street.

New Business Development – The following technology and advanced manufacturing businesses have moved to, are in the process of moving, or have expanded in Milpitas: Super Micro Computer, Amazon (1000 Gibraltar), Apple

Letter of Transmittal

xxiv City of Milpitas
(production studio), Corsair Gaming, BD Biosciences, Commonwealth Fusion Systems, KLA+, TDK, Headway Technologies, Tarana Wireless, Ascenx, Trace3, Global4PL, and Rivian. In March 2024, the City Council approved an Economic Development Incentive Agreement and Economic Development Subsidy Report that will create 25 new jobs and generate approximately $19.4M (average of $2.4M annually) of sales tax revenues which will help fund essential City services. Rivian’s investment not only brings new jobs and revenues, but clean technology practices, and national visibility to Milpitas. These Milpitas businesses have created new jobs and generate sales tax revenues through business-to-business relationships.

Non-residential Development – In FY 2024-25, the City approved several new non-residential development projects for tenant and site improvements and new construction for new and existing Milpitas companies including Asteelflash, BD Biosciences, KLA, Sutter Health, Western Digital Dunkin Donuts, Miniso and Altitude Trampoline Park.

Conclusion
The Proposed FY 2025-26 Budget appropriately maintains and realigns priority service areas to address the current needs of the Milpitas community and the need of the City as an organization. We remain committed to supporting our community and maintaining fiscally sound policies to fund City reserves, continue long-term planning and investing in City economic development. This balanced budget provides funding for a portfolio of essential City services and infrastructure improvements. Throughout this process, we have faithfully sought Council, community, and employee feedback to inform budget priorities.

This budget could not be accomplished without the tremendous work of the Executive Leadership Team and our staff. I am especially thankful to the Budget Team, including Finance Director Luz Cofresí-Howe, Assistant Finance Director Gabrielle Tsang and Budget Manager Alice Vurich, as well as the entire Finance Department for their dedication, professionalism, and expertise in the development and publication of the FY 2025-26 Proposed Budget.

Above all, I greatly appreciate the foresight, leadership, and direction of Mayor Montano and our dedicated City Council members, in pursuing a collaborative and successful budget process. With your guidance and support, Milpitas is poised for fiscal stability and continued success as we face the year ahead, however, we remain cautious and concerned about the longer-term economic forecast and will continue to work with the City Council on options to maintain a balanced budget in future years.

Respectfully submitted,

Deanna J. Santana
Interim City Manager

CITYORGANIZATIONALCHARTS
Milpitas Community
Mayor & City Council
Interim City ManagerDeanna J. Santana
Finance DirectorLuz Cofresí-Howe
Human Resources DirectorKelli Parmley
Assistant City ManagerMatt Cano
City Council & City Manager Support
Housing OfficialSarah Balcha(Acting)
Director of Economic Development & Strategic InitiativesAlex Andrade Recreation & Community Services DirectorRenée Lorentzen PlanningJay Lee
Building OfficialBill Tott
City ClerkSuzanne Guzzetta
Public Information OfficerCharmaine Angelo
Public Works DirectorChristian Di Renzo
Information Technology DirectorDaniel Nam
Fire ChiefJason Schoonover
Police ChiefJared Hernandez
City AttorneyChristopher Creech(Acting)City Commissions•Energy & Environmental Sustainability•Arts•Senior Advisory•Community Advisory•Science, Technology and Innovation•Economic Development & Trade•Veterans•Public Safety & Emergency Preparedness•Youth Advisory•Library & Education Advisory•Measure F Oversight Committee•Parks, Recreation & Cultural Resources•Planning

CITYORGANIZATIONALCHARTSDeanna J. SantanaInterim City Manager(1.0)Matt CanoAssistant City Manager(1.0)Special Project Associate((0.75)City Council & City Manager SupportVACANTSenior City Manager Analyst*(1.0)Office Specialist(1.0)VACANTStaff Assistant(0.25)Sarah BalchaHousing Official(1.0)See Following PageAlex AndradeDirector of Economic Development & Strategic Initiatives(1.0)See Following PageBill TottBuilding Official(1.0)See Following PageSuzanne GuzzettaCity Clerk(1.0)Deputy City Clerk(1.0)Office Assistant(1.0)Charmaine AngeloPublic Information Officer(1.0)Special Project Associate(1.0)Student Intern(0.5)City Manager NewMoveReclassTempDefundedFTEFY 2025-2636.0Permanent2.75TemporaryAdd-Delete Administrative Analyst II to Senior City Manager Analyst*

CITYORGANIZATIONALCHARTS
Matt CanoAssistant City Manager(1.0)
(Vacant)Housing Official(1.0)
Senior Administrative Analyst(1.0)
Administrative Analyst II(1.0)
Administrative Analyst II(1.0)
Bill TottBuilding Official(1.0)
Building Inspection Manager(1.0)
Senior Builder Inspector(3.0)
Building Inspector(5.0)
Building Inspector(1.0)
Plan Review Manager(1.0)
Building Permit Technician(3.0)
Office Assistant II(1.0)
Senior Plan Check Engineer(1.0)
Plan CheckEngineer(3.0)
Plan Checker(1.0)
Administrative Assistant II(1.0)
Alex AndradeDirector of Economic Development & Strategic Initiatives(1.0) Economic Development Coordinator(1.0)
Economic Development Specialist(1.0)
Economic Development Specialist(0.3)
City Manager
NewMoveReclassTempDefundedFTEFY 2025-2636.0Permanent2.25Temporary

CITYORGANIZATIONALCHARTSCity Attorney
NewMoveReclassTempDefunded
Christopher CreechCity Attorney(Acting)(1.0)
Assistant City Attorney(1.0)
Legal Assistant(1.0)
Law Clerk(0.5)FTEFY 2025-263.0Permanent.50Temporary

CITYORGANIZATIONALCHARTSChristian Di RenzoDirectorSenior Administrative Analyst(1.0)Office Specialist(1.0)Office Assistant(1.0)Senior Special Projects Associate(1.0)Senior Administrative Analyst(1.0)Administrative Analyst II(2.0)Administrative Assistant(1.0)Division Manager –Operations(1.0)Manager – Projects(1.0)Sr Lead – Street Maintenance(1.0)Equip Maintenance Worker III(1.0)Equip Maintenance Worker II(1.0)Maintenance Worker III(3.0)Maintenance Worker I/II(6.0)Sr Lead – Parks, Trees & Landscape(1.0)ParksMaintenance Worker III(1.0)Maintenance Worker I/II(2.0)Maintenance Assistant(2.0)Trees & LandscapeMaintenance Worker III(3.0)Maintenance Worker I/II(6.0)Maintenance Assistant(1.0)Seasonal Maintenance Workers(2.0) Sr Lead – Fleet(1.0)Maintenance Worker III(1.0)Maintenance Worker II(3.0)Sr Lead – Facilities(1.0)Equip Maintenance Worker III(2.0)Equip Maintenance Worker II(1.0)Maintenance Worker I/II(3.0)Maintenance Custodian III(2.0)Maintenance Custodian I/II(4.0) Deputy Director(1.0)(See Following Pages)City Engineer(1.0)(See Following Pages)Public Works NewMoveReclassTempDefundedFTEFY 2025-26117.0Permanent4.0Temporary

CITYORGANIZATIONALCHARTSChristian Di RenzoDirector(1.0)Deputy Director(1.0)Senior Administrative Analyst(1.0)Environmental Inspector(1.0)Administrative Analyst II(1.0)Staff Assistant/Student Intern(0.5)Sustainability Coordinator –Limited TermAdministrative Analyst II(1.0)Division Manager – Utilities(1.0)SCADA Instrumental Control Technician(1.0)Sr. Lead – Storm/Sewer(1.0)Equip Maintenance III(3.0)Equip Maintenance II(2.0)Maintenance Worker III(1.0)Maintenance Worker I/II(2.0) Maintenance Supervisor –Water(1.0)Water System Operator(3.0)Assistant Water System Operator(1.0)Maintenance Worker III(3.0)Maintenance Worker I/II(5.0) Environmental & Regulatory Compliance Specialist(1.0)Environmental Inspector(1.0)Administrative Analyst II(1.0)Public Works NewMoveReclassTempDefunded

CITYORGANIZATIONALCHARTSChristian Di RenzoDirector(1.0)City Engineer(1.0)Management Analyst (TASP)*(1.0)Division Manager : EngineeringLand Management & Traffic(1.0)Land DevelopmentPrincipal Civil Engineer(1.0)Associate Civil Engineer(2.0)Junior/Assistant Engineer(2.0)Engineering Aide(1.0)TrafficPrincipal Civil Engineer(1.0)Associate Civil Engineer(2.0)Division Manager : EngineeringUtility Engineering(1.0)Associate Engineer(1.0)Associate Civil Engineer(1.0)Assistant Engineer(1.0)Engineering Aide(1.0)Cross Connection Specialist(1.0)Student Intern(0.5) Division Manager : EngineeringDesign & Construction(1.0)Principal Civil Engineer(1.0)Associate Civil Engineer(2.0)Assistant Engineer(1.0)Junior/Assistant Engineer(3.0)Engineering Aide(1.0)Senior Inspector(1.0)Inspector(3.0)Public Works NewMoveReclassTempDefundedMoved to Finance*

CITYORGANIZATIONALCHARTSLuz Cofresí-HoweDirector(1.0)Administrative Analyst II1(1.0)Assistant Finance Director(1.0)Finance Manager –Fiscal Services(1.0)Accounting Technician(3.0)Senior Accountant(1.0)Water Meter Technician(2.0)Water Meter Technician(0.5)Senior Accounting Technician(1.0)Accounting Technician(1.0)Student Intern(0.5) Senior Project Associate**(0.75)Staff Assistant(0.5)Finance Manager –Accounting(1.0)Accounts PayableSenior Accountant(1.0)Accounting Technician(2.0)Student Intern(1.0)PayrollSenior Accountant(1.0)Payroll Specialist(2.0)General LedgerSenior Accountant(1.0)Accountant(2.0)Accounting Technician(1.0) Management Analyst –TASP*(1.0)Administrative Assistant(1.0)Budget Manager – Budget, Debt, Risk Mgt, Treasury(1.0)Financial Analyst(3.0)Purchasing Agent(1.0)Buyer(2.0)Senior Special Projects Associate(1.05)Finance NewMoveReclassTempDefundedTransfer from Office of the City Manager1Moved from Public Works*Reclassed to 0.75 FTE**FTEFY 2025-2632.75Permanent3.55Temporary

CITYORGANIZATIONALCHARTSJason SchoonoverFire Chief(1.0)Executive Assistant(1.0)Deputy Fire Chief –OperationsBattalion Chief – Shift AFire Captain(5.0)Fire Engineer(6.0)Firefighter(9.0)Battalion Chief – Shift BFire Captain(5.0)Fire Engineer(6.0)Firefighter(9.0)Battalion Chief – Shift CFire Captain(5.0)Fire Engineer(6.0)Firefighter(9.0)Battalion Chief – Training, Office of Emergency MgtEmergency Services Coordinator(1.0)Fire Captain –Administration(1.0)Battalion Chief – EMS & Safety (1.0)Deputy Fire Chief – Fire Prevention(1.0)Assistant Fire Marshall(1.0)Fire Protection Engineer(2.0)HazMat Inspector(2.0)Fire Prevention Inspector(3.0)Fire Prevention Inspector(1.0)Office Specialist(1.0)Intern(0.5) Senior Administration Analyst(1.0)Administration Analyst I/II(1.0)Fire NewMoveReclassTempDefundedFTEFY 2025-2681.0Permanent0.5Temporary

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NewMoveReclassTempDefundedFTEFY 2025-268.0Permanent2.5Temporary

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NewMoveReclassTempDefundedFTEFY 2025-2614.0Permanent0.5Temporary

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NewMoveReclassTempDefundedFTEFY 2025-2618.0Permanent44.625TemporaryRepresents Working Title1

Five-Year General Fund Financial Forecast
City of Milpitas 1
FY 2026-2030 Five-Year General Fund Financial Forecast
The City of Milpitas develops a Five-Year General
Fund Financial Forecast (Forecast) during its annual
budgeting process to enhance financial planning and
ensure fiscal stability by anticipating potential
challenges and developing proactive strategies. This
Forecast considers economic trends, supports
informed policy decisions, and promotes
transparency with stakeholders. Additionally, the
Forecast aligns financial resources with long-term
strategies and prepares the City for emergencies
and/or economic downturns by identifying potential
funding gaps or increased costs. In summary, this
Forecast is a strategic tool, strengthening informed
decision-making and fostering a sustainable financial
environment for the Milpitas community.

The table below shows the FY 2026-2030 Five-Year
General Fund Financial Forecast starting with the FY
2025-2026 Proposed Budget. Revenues and other
Sources include taxes, fees, overhead charges and
use of reserves, as applicable. Uses include
personnel and non-personnel expenditures, debt
service and contributions to reserves, as applicable.

Over the five years covered by the Forecast, based
on information available as of May 2025, the City
anticipates a nominal surplus for FY 2025-2026,
achieved through effective cost allocation and
expenditure efficiencies
with minimal impact to
services and no filled positions adversely affected.

This Forecast also reduces the previously estimated
five-year $28.5 million structural deficit, projected in the February 18, 2025, Preliminary General Fund
Forecast for FY 2025-2026, by 42.9%, lowering it to
$16.3 million by FY 2029-2030. The Proposed Budget
for FY 2025-2026 defers the City structural deficit to
FY 2027-2028 while simultaneously funding new
initiatives aimed at stabilizing services and funding
the implementation of a comprehensive Fiscal
Strategy and Framework. This comprehensive, multi-
year organizational assessment and revitalization
initiative is designed to systematically evaluate and
strengthen the City operational framework. Through
this process, we will identify and develop targeted
initiatives that not only enhance efficiency but also
cultivate sustainable practices aimed at securing the
City’s long-term financial stability. By focusing on
strategic implementation, we aim to build a resilient
financial foundation that will support City growth and
service delivery well into the future, ensuring the City can effectively respond to changing community needs
and economic challenges.

The table below also includes information on the City
Adopted Amended Budget for FY 2024-2025.

Table 1 – FY 2026-2030 Five-Year General Fund Financial Forecast – Overview ($ in millions) Sources and Uses
FY2024-2025
Adopted
Amended Budget
FY2025-2026
Proposed
Budget
FY2026-2027
Forecast
FY2027-2028
Forecast
FY2028-2029
Forecast
FY2029-2030
Forecast
Revenues and Other
Sources $136.5 $138.8 $142.7 $147.1 $151.7 $157.3
Use of Reserves 5.3 5.1 2.7 - - -
Expenditures (141.8) (143.9) (146.4) (153.3) (160.9) (166.8) Annual
Surplus/(Deficit)1 $ 0.0 $ 0.0 $ (1.0) $ (6.1) $ (9.2) $ (9.5) Structural Deficit $ (0.0) $ (1.0) $ (7.1) $ (16.3)

1 Numbers may not total due to rounding.

Five-Year General Fund Financial Forecast
2 City of Milpitas
The following sections discuss the year-over-year changes between the FY 2024-2025 Adopted Amended Budget and the FY 2025-2026 Proposed Budget as well as assumptions embedded in the FY 2026-2030 Five-Year General Fund Financial Forecast for major revenue and expenditure categories.

Five-Year General Fund Financial Forecast
City of Milpitas 3
Revenues and Other Sources
Property tax revenues. California Proposition 13 establishes a base property tax rate cap of 1% of assessed value, with annual increases in assessed value limited to the lesser of 2% or the California Consumer Price Index (CCPI). Projections for the CCPI over the next five years indicate a trend of moderating inflation, with the state’s average annual inflation rate expected to settle at 2.3% by 2025. In the long run, California's steady -state inflation rate is forecasted to reach approximately 2.6%. Given these conditions, it is likely that the 2% limit imposed by Proposition 13 will apply. Moreover, anticipated increases in assessed valuation due to new housing developments and the reassessment of properties resulting from changes in ownership are expected to influence overall property tax growth. Consequently, the average projected increase in property tax revenue for the forecast period is estimated to be around 3.75%.

City staff relies on data provided by the City’s property tax consultant and the County of Santa Clara to formulate these property tax revenue estimates. For the fiscal year 2026-27, there is a modest increase in property tax revenue, reflecting a return to historical growth rates for the remaining forecast period, with expected rates of 3.75% for secured property tax revenue and 3.0% for Excess Educational Revenue Augmentation Fund (ERAF) collections. As a result, property tax revenues are anticipated to reach $53.1 million in FY 2025- 26, representing an increase of $2.8 million, or 5.6%, compared to the revised budget of $50.3 million for FY 2024- 25.

Property Tax (Excess ERAF) – In light of recent litigation involving ERAF, we are adopting a conservative approach by setting aside an 18% contingency to the ERAF revenue projections. Established by the California Legislature in 1991, ERAF was designed to reduce state-general fund expenditure on education, directing a portion of property tax revenue toward supporting local school districts. The allocation of excess ERAF funds to cities is determined by a variety of factors, including countywide property tax growth, the sale of Redevelopment Agency assets, the California Department of Education’s local control funding formula, school district attendance rates, and special education costs. Currently, the legal dispute regarding the "excess ERAF" revenue has been adjudicated and won in favor of the intervening counties and the State Controller, who determined charter schools are not eligible to receive ERAF. However, the 2024-2025 California budget included language enabling the use of ERAF monies to fund charter schools. Staff continues monitoring developments in this issue and provide updates as available.

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 share is approximately 16.2% of the 1% base rate.

Five-Year General Fund Financial Forecast
4 City of Milpitas

Sales tax revenue is projected to be $28.5 million in FY 2025-2026, a decrease of $0.9 million, or 3.8% compared to FY 2024-2025 Adopted Budget of $29.6 million. The FY 2025-2026 Adopted Budget is approximately status quo to the FY 2024-2025 year-end revenue estimate – with a slight decrease of $0.4 million, or 1.1%. State and local governments remain in post-Covid recovery. A growth rate of 2.0% - 2.5% is projected for the remainder of the Forecast. The projected increase is generally based on estimates from the City sales tax consultant.

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

Chart 1 : Property Tax Allocation by Percent among various Governmental Entities

Five-Year General Fund Financial Forecast
City of Milpitas 5
Chart 2: 9.375% Sales Tax Allocation by Percentage Points among various Governmental Entities Allocation of Sales Tax

Five-Year General Fund Financial Forecast
6 City of Milpitas
City of Milpitas Public Services 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 $7.0 million in FY 2025-2026. The City of Milpitas Public Services Measure is a general tax to provide funding to maintain the City finances and services, including police and fire protection, 911 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. Measure F was effective April 1, 2021 through March 31, 2029; Measure J, approved by voters on November 5, 2024, extended Measure F by eight years to March 31, 2037.

Transient Occupancy Tax (TOT), also known as Hotel/Motel Tax Revenues, is anticipated to reach $13.3 million for the fiscal year 2025-2026. This represents a $0.3 million increase, or 2.3%, compared to the $10.0 million projected in the FY 2024-2025 Adopted Budget. The post-COVID recovery has led to a gradual resurgence in travel, positively affecting hotel and lodging sectors. However, the long-term impact of the pandemic on business travel and its subsequent effects on these industries remain uncertain. While the City does expect some overflow economic benefits from NBA All-Star event in 2025, and Super Bowl LX and the FIFA World Cup soccer events in 2026, most of those revenues will accrue to their respective host cities, San Francisco and Santa Clara, and San José. Looking ahead, TOT revenue is expected to grow by approximately 5% in FY 2026-2027, assuming a continued recovery followed by a more modest growth rate of 3.0% for the subsequent years in the Forecast.

Licenses and permits consist of building permits and fire permits, which are primarily construction- related. The estimated revenue for licenses and permits. The FY 2025-2026 estimated revenue is $8.7 million, a decrease of $0.5 million, or 5.4% compared to FY 2024-2025 Adopted Budget. The estimated revenue reduction is primarily due to declining trends for building permits in comparison to prior years. While plan check revenues are holding steady, construction of projects and therefore building permit and other related fees are declining. With the current slower economic outlook, the FY 2025-2026 Adopted Budget conservatively assumes the development slowdown will lower building and fire permit revenues. The forecast for FY 2026-2027 assumes significant revenue recovery and then is projected to increase between 3.5% to 3.8% for the remainder of the Forecast.

Charges for Services are primarily user fees, including charges for private development related services, engineering fees, and recreation service charges. The FY 2025-2026 estimated revenue from Charges for Services is $8.2 million, an increase of $0.2 million, or 2.5%, compared to FY 2024-2025 Adopted Budget. Charges for services is projected to increase 2.8% for the remainder of the Forecast.

The Charges for Services Master Fee Schedule is reviewed annually by City staff as part of standard operations.

Proposed year-over-year adjustments may reflect inflation, based on the estimated average annual increase in employee compensation, with separate calculations for miscellaneous and safety employees, as well as additional costs associated with each service or activity. A comprehensive cost-of-service study for City fees is typically conducted every three to five years, with the last major update having occurred on April 18, 2023. An interim update is scheduled for City Council consideration and approval on June 17, 2025.

The City is currently conducting an in-depth review of its cost recovery framework to create a consistent and objective fee and rate system (Master Fee Schedule) that aligns with the interests of both the City and its residents.

This Comprehensive Fee Study will focus on the principle of “true and total costs to serve,” which will serve as the foundational rationale for determining City fees for various services and activities. Additionally, it will incorporate a considered City Council policy regarding the subsidization of specific activities and/or groups within Milpitas.

Five-Year General Fund Financial Forecast
City of Milpitas 7
The Comprehensive Fee Study is contemplated to inform the annual update of the Master Fee Schedule for FY 2026-27, which will go into effect on July 1, 2026, and will adhere to all relevant laws and regulations. This updated Master Fee Schedule will serve as a strong foundation for any interim updates until the next comprehensive fee study is conducted.

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 2025-2026 estimated revenue from Franchise Fees is $6.4 million, an increase of $0.4 million, or 6.7%, compared to FY 2024- 2025 Adopted Budget revenue estimates of $6.0 million. 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 similar interest earnings from the FY 2024-2025 estimate of $1.2 million in FY 2025-2026.

Other Taxes include real estate transfer tax (approximately $0.7 million), business license tax (approximately $0.3 million) and motor-vehicle-in-lieu (approximately $90,000). The FY 2025-2026 estimated revenue from Other Taxes is $1.2 million. When real estate transfers ownership (i.e. via existing real estate sales and/or newly constructed real estate sales), it generates a transfer tax revenue to the City. Average annual increases of 2.8% are projected for the remainder of the Forecast.

Intergovernmental represents the revenue account from federal and state agencies (i.e. grants, state reimbursement for fire mutual aid). The FY 2025-2026 estimated revenue for Intergovernmental is $0.4 million, an increase of $0.1 million, or 33.3%, from FY 2024-2025 Adopted Budget of $0.3 million. The variability of this revenue category depends upon the award of competitive grants and Fire's response to mutual aid needs to wildfire season and other events, which the forecast does not include, to be conservative.

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 3.6% annually over the Forecast period. Operating Transfers are projected to be $9.4 million in FY 2025-2026, an increase of $0.9 million, or 10.6%, compared to FY 2024-2025 Adopted Budget revenues estimates of $8.5 million.

Expenditures
Table 3 – FY 2026-2030 Five-Year General Fund Financial Forecast - Expenditures ($ in millions) Expenditures
FY2024-2025
Adopted
Amended
Budget
FY2025-2026
Proposed Budget
FY2026-2027
Forecast
FY2027-2028
Forecast
FY2028-2029
Forecast
FY2029-2030
Forecast
Salaries $66.6 $68.8 $69.5 $72.0 $74.3 $76.6
Benefits 43.4 46.3 $46.9 $49.2 $52.8 $54.9
Services & Supplies 26.9 26.7 27.8 30.0 31.7 33.2
Debt Services 1.3 1.3 1.4 1.4 1.4 1.4
Capital Outlay 0.3 0.0 0.0 0.0 0.0 0.0
Operating Transfers Out 3.3 0.8 0.8 0.8 0.8 0.8
Total Expenditures2 $141.8 $143.9 $146.4 $153.4 $161.0 $166.9

2 Numbers may not total due to rounding.

Five-Year General Fund Financial Forecast
8 City of Milpitas
Salaries and Benefits is projected to increase due to scheduled salary increases along with related benefit increases. The overall FTE decreases from FY 2024-2025 by 3.0 FTE to 452.0 FTE. The $4.9 million salaries and benefits increase is primarily related to scheduled cost of living adjustments (COLA) and associated benefits. The current International Association of Fire Fighters 1699 (IAFF) contract has a 5.0% COLA for both its represented and non-represented staff effective the first full pay period in July 2025. The Milpitas Police Officers Association contract has a 4.0% COLA for Sworn and Police Unrepresented employees and a 3.0% COLA for non-Sworn employees effective the first full pay period in January 2026. The remaining three bargaining units – Milpitas Professional and Technical (ProTech), Mid-Management Confidential Unit (MidCon) and the Milpitas Employee Association (MEA) – contracts expire June 30, 2025 and are in negotiations. Unrepresented Employees COLA increases typically follow the MidCon COLAs. COLAs for these groups for FY 2025-2026 are subject to change pending finalization of negotiations.

The City has two pension plans with California Public Employees Retirement System (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 2025-2026, the City budget reflects pension contribution costs based on the most recent actuarial valuation available by CalPERS dated July 2024 based on data ending June 30, 2023. The CalPERS annually provides member agencies with an actuarial valuation, which considers payroll data, inflation and demographic assumptions and serves as the basis for annual contribution rates of its member agencies pension plans. CalPERS actuarial valuations are typically released in June of each year and reflect data as of June 30 of the prior fiscal year. Often, due to headcount changes and granted salary increases per memoranda of understanding with the City bargaining units, the budgeted payroll data is higher than the CalPERS assumption in its valuations.

In Fiscal Year 2015-2016, 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 affected 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 prepared by Foster and Foster, the City actuary. With a 50% probability, the City’s Sworn Plan contribution percentages will peak in just over 6 years at 74.6% of payroll; similarly, the City’s Miscellaneous Plan contribution percentages will peak in just over 6 years at 42% of payroll. In Fiscal Year 2021-22, CalPERS experienced lower than expected return of (6.1%). Consequently, the return increased overall unfunded accrued liability (UAL) for out years, increasing contribution rates. Actual Fiscal Year 2024 CalPERS investment results have not been published as of the date of this report. 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

Five-Year General Fund Financial Forecast
City of Milpitas 9
Tier 2 member population declines, the pension contributions as a percent of payroll are expected to decline substantially.

Chart 3: Miscellaneous and Safety Plans Contribution Projections as a Percent of Payroll (Foster and Foster, November 2024)

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 Foster and Foster 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.

Five-Year General Fund Financial Forecast
10 City of Milpitas
Chart 4: Payment to 115 Trust - Miscellaneous Contribution Rate Projection (Foster and Foster, November 2024)

Chart 5: Payment to 115 Trust - Safety Contribution Rate Projection With EE Cost Sharing (Foster and Foster, January 2024)

Services and Supplies costs are anticipated to be $26.7 million in FY 2025-2026, a decrease of $0.2 million, or

0.7%, compared to FY 2024-2025 Amended Budget of $26.9 million. This slight decrease is primarily due to limited term proposals expiring June 30, 2025. An average annual increase of 3% is projected for the remainder of the Forecast but consumer price index (CPI) may increase given the current economic conditions. There are also fluctuations of cost increases every other year due to election costs 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 approximately $1.3 million FY 2025-2026,

Five-Year General Fund Financial Forecast
City of Milpitas 11
which is partially offset with assumed energy cost savings from the energy efficiency projects.

Capital Outlay consists of the purchase of equipment (primarily vehicle, large equipment and computers) 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.

Operating Transfers Out consists of transfers to the Information Technology Equipment Fund ($300,000) per the current Fiscal Policies. This budget continues the annual transfer to the Storm Drain Fund for FY 2025- 2026 of $0.5 million.

Five-Year General Fund Financial Forecast
12 City of Milpitas

Fiscal Policies and Budget Process
City of Milpitas 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 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
30 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 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
2 City of Milpitas
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 therefore is 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 applicable
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 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
City of Milpitas 3
Investment Policies

33. The Finance Director/City Treasurer will
annually render an investment policy for the
City cash pool for City Council 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 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 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)
◦ Pension budgetary surplus allocated to the 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)
◦ 30% to the General Government Capital Improvement Fund (Policy Statement #56); ◦ 20% to Storm Drain Fund;
◦ 10% to the Affordable Housing Community Benefit Fund (Fund 216); ◦ 10% to Transportation/Transit (Fund 310);
◦ 15% to Technology Replacement Fund;
◦ 10% to Strategic Property Acquisition Revenue (SPAR) Fund (Policy #57); and ◦ 5% Unassigned

Fiscal Policies and Budget Process
4 City of Milpitas

40. The City will periodically review and update
reserve guidelines to ensure 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 due to
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. 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.

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%

Fiscal Policies and Budget Process
City of Milpitas 5
or two months of the respective annual
operating expenditures after the 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, drought events or natural
disasters), increased water conservation, and
poor regional economic conditions. The RSR
should be used to smooth out revenue
variability resulting from these factors, and
ensure 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. 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 artificial turf fields to
address 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.

Fiscal Policies and Budget Process
6 City of Milpitas

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.

56. The City may direct 30% of any General Fund
audited year end operating surplus to a
General Government Capital Improvement
Fund to address the funding needs of capital
improvement projects after General Fund
Contingency and General Fund Budget
Stabilization reserve requirements have been
met and pension budget surplus are allocated
to the PERS Rate Stabilization Reserve (Policy
Statement #43).

57. The City may direct 10% of any General Fund
audited year end operating surplus to the SPAR
Fund to support strategic property acquisition,
development and long-term revenue
opportunities after General Fund Contingency
and General Fund Budget Stabilization reserve
requirements have been met and pension
budget surplus is allocated to the PERS Rate
Stabilization Reserve (Policy Statement #43).

Accounting, Auditing, and Financial Reporting Policies

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

59. 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.

60. 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.

Fiscal Policies and Budget Process
City of Milpitas 7
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 consistent with City Council 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 City 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 five-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 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 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.

Fiscal Policies and Budget Process
8 City of Milpitas

3. Form and Content of the City Manager Proposed Budget The Five-Year General Fund Financial Forecast and the City Manager 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 City Council preliminary general fund forecast study session. • Projected revenues by major category.
• 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 fiscal year 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 four 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 appropriations amount and authority of the City Manager to administer the adopted budget. Unless otherwise directed, all funds presented in the operating budget document are subject to City Council approval.

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 ($1,300,000 in FY 2025-26, or approximately 1% of total General Fund appropriations), 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; • Amend the budget for grant interest earned to update the grant budget revenue(s) and associated grant appropriation(s).
• Accept grants or donations up to $100,000 or less (monetary and non-monetary based upon market value), increase department revenues and appropriations accordingly and execute related agreements if 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 if 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

Fiscal Policies and Budget Process
City of Milpitas 9
• Add/delete positions or to move positions between departments to respond to organizational needs, if 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 $1,300,000 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.

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 the City 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 future year 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.

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 2024- 25 are subject to carry over into FY 2025-26.

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.

Fiscal Policies and Budget Process
10 City of Milpitas

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".

City of Milpitas FY 2025-2026 Budget Process

Fiscal Policies and Budget Process
City of Milpitas 11
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 Priority Areas and other City Council directives. • The City five-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 five-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 five fiscal years to develop the Forecast. The five-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 with a review of City Council Priority Areas and the presentation of the five-year General Fund Financial Forecast. Through surveys and community meetings, staff engages the community for input into budget priorities. Based on guidance from City Council and input from the community, the City Manager publishes the proposed budget for the upcoming year. From April to June, the City Council holds study sessions and public hearings prior to adopting the annual budget. The City Council adopts the Proposed Budget based on discussion or direction during the budget hearings. In summer, the City publishes its Adopted Budget. For the Fiscal Year 2025-26 budget development process.

Understanding the Budget Document
The operating budget document includes Citywide 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. City budget information is available in the annual Adopted Budget publication, which occurs in the summer following adoption. The City also publishes a Budget-in-Brief document, and the annual budget will also be available on the City website. The City lists all fund names by fund type in the Appendix.

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 intended to be substantially self-supporting through fees for services. In areas where specific benefit for a service can be identified to specific individuals and/or entities, 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 Fund. The intent is that these two funds be completely self-supporting and not be subsidized by any general fund revenue or taxes. The utility bills sent to each household and business in the City recover the cost of providing water and sewer customer services.

Fiscal Policies and Budget Process
12 City of Milpitas
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 main internal service fund, the Equipment Management Fund, provides vehicle and fleet maintenance services 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 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 for ensuring that appropriations are not exceeded during the fiscal year.

Appropriations automatically lapse at the end of the fiscal year unless an encumbrance exists, except for 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 annually establishes an appropriations limit by resolution during the budget process that is consistent with the State Constitution, 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 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.

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

Fiscal Policies and Budget Process
City of Milpitas 13
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 subject to accrual are property and sales taxes and interest revenue. Transient Occupancy Tax (TOT), forfeitures, licenses, permits, and miscellaneous revenue are not subject 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 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 by function, if applicable, and expenditure categories.

Staffing: lists all full-time equivalent (FTE) positions for the department for several fiscal years by function, if applicable, and by classifications. Defunded, reclassed and moved positions are noted as appropriate in exhibits, such as organization charts and specific exhibits.

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.

Fiscal Policies and Budget Process
14 City of Milpitas
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

Fiscal Policies and Budget Process
City of Milpitas 15

Fiscal Policies and Budget Process
16 City of Milpitas

Fund Structure
Accrual Basis of Budgeting
Basis of Budgeting
City of Milpitas budgets are adopted following
generally accepted accounting principles
(GAAP), with a few exceptions. Encumbrances,
which represent commitments to purchase
goods or services, are recorded as budgetary
expenditures in the year they are committed.

Additionally, capital project expenditures are
budgeted over the duration of the project
instead of within a single fiscal year. For all
governmental funds, revenues and
expenditures are budgeted using a modified
accrual basis. In contrast, for all proprietary
funds, revenues and expenditures are budgeted
on an accrual basis.

Accrual Basis is a basis of accounting in which
income and expenditure transactions are
recognized when they occur, regardless of
when the associated cash payments are made.

Modified Accrual Basis is a basis of
accounting in which revenues are recognized
when measurable and available and to finance
current expenditures, and recognizing
expenditures when they are incurred and
measurable
Financial Information
City of Milpitas 1

Financial Information
City of Milpitas 2
Budget Summary Grand Total General Fund(1)
Estimated Revenues
Property Taxes ......................................................................................................... $53,102,400 $53,102,400 Sales Taxes .............................................................................................................. 35,482,568 35,482,568 Transient Occupancy Tax ....................................................................................... 13,334,900 13,334,900 Licenses, Permits & Fines ..................................................................................... 9,685,323 8,730,708 Charges For Services ............................................................................................. 77,506,062 8,371,218 Franchise Fees ........................................................................................................ 6,482,860 6,397,860 Use of Money & Property ....................................................................................... 4,990,809 1,067,673 Other Taxes .............................................................................................................. 5,561,481 1,161,600 Intergovernmental Revenue .................................................................................. 1,083,152 412,552 Other Revenue ........................................................................................................ 16,523,456 270,000 Operating Transfers In ............................................................................................ 30,056,769 10,451,228 sub-total 253,809,780 138,782,707
Other Financing Sources
(Increase) Decrease in Fund Balance .................................................................. 3,510,806 5,070,045 (Increase) Decrease in CIP Reserve .................................................................... 11,068,730 0 Other Financing Sources ....................................................................................... 0 0 sub-total 14,579,536 5,070,045
TOTAL $268,389,319 $143,852,752
Budgeted Appropriations
Personnel Services ................................................................................................. $127,397,622 $113,500,912 Non-Personnel Expenditures ................................................................................. 70,781,567 28,202,634 Capital Outlay .......................................................................................................... 938,135 15,000 Operating Transfers Out ......................................................................................... 25,751,584 844,806 sub-total 224,868,908 142,563,352
Capital Improvements ............................................................................................. 38,761,735 0 Debt Service ............................................................................................................ 4,758,675 1,289,400 sub-total 43,520,410 1,289,400
TOTAL $268,389,321 $143,852,752
Fund Balance
Fund Balance 7/01/2025 ........................................................................................ 336,777,599 69,194,798 Net Changes in Fund Balance .............................................................................. (14,579,535) (5,070,045) TOTAL $322,198,064 $64,124,753
Restricted ................................................................................................................. $17,021,618 $0 Restricted for CIP .................................................................................................... 112,633,389 0 Committed for CIP ................................................................................................... 80,831,684 0 Committed, Artificial Turf ........................................................................................ 1,900,000 1,900,000 Committed, Technology .......................................................................................... 3,178,939 3,178,939 Committed, Facilities .............................................................................................. 400,000 400,000 Committed for PERS .............................................................................................. 12,202,487 3,932,036 Unassigned, Unrestricted ....................................................................................... 20,802,116 4,271,436 Committed, Workers' Compensation .................................................................... 2,914,954 2,914,954 Reserve for Encumbrance ..................................................................................... 2,340,251 2,340,251 Future Deficit Reserve ............................................................................................ 2,187 2,187 ERAF Reserve ......................................................................................................... 2,764,787 2,764,787 SPAR (Strategic Property Acquisition Reserve) .................................................. 710,248 710,248 Community Investment Fund, Unassigned .......................................................... 574,621 574,621 Capital Reserve, Unassigned ................................................................................ 15,568,321 0 Contingency Reserve, Unassigned ...................................................................... 20,567,647 20,567,647 Budget (Rate) Stabilization, Unassigned ............................................................. 27,784,815 20,567,647 TOTAL $322,198,064 $64,124,753
(1) General Fund, Abandon Vehicle Abatement, 1452 S. Main St., Community Investment, admin funds of the former Redevelopment Agency (2) Other Funds: Community Benefit, Community Facility District Funds, Community Planning Fee, Gas Tax, Eq uip. Replacement, Measure B, Permit Automation, Public Art, and Solid Waste Svcs. funds.

Financial Information
3 City of Milpitas
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
0 954,615 0 0 0
80,000 3,899,999 0 38,998,984 26,155,861
0 85,000 0 0 0
37,241 529,259 1,636,847 871,521 848,268
0 4,399,881 0 0 0
0 670,600 0 0 0
0 7,348,526 6,448,730 931,200 1,525,000
0 344,806 19,260,735 0 0
117,241 18,232,686 27,346,312 40,801,705 28,529,129
357,793 5,422,266 0 1,893,448 (9,232,746)
0 132,083 7,247,641 (149,468) 3,838,474
0 0 0 0 0
357,793 5,554,349 7,247,641 1,743,980 (5,394,272)
$475,034 $23,787,035 $34,593,953 $42,545,685 $23,134,857 $0 $5,036,786 $0 $5,575,923 $3,284,001
475,034 3,417,919 21,218 28,737,988 9,926,774
0 703,210 0 174,816 45,109
0 14,629,122 4,548,000 3,092,508 2,637,148
475,034 23,787,037 4,569,218 37,581,235 15,893,032
0 0 30,024,735 3,920,000 4,817,000
0 0 0 1,044,450 2,424,825
0 0 30,024,735 4,964,450 7,241,825
$475,034 $23,787,037 $34,593,953 $42,545,685 $23,134,857 2,502,415 36,962,025 117,334,046 50,255,871 60,528,446
(357,793) (5,554,349) (7,247,641) (1,743,980) 5,394,272 $2,144,622 $31,407,676 $110,086,405 $48,511,891 $65,922,718 $2,144,622 $14,876,996 $0 $0 $0
0 0 64,772,099 19,002,660 28,858,630
0 0 45,314,306 22,430,374 13,087,004
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 1,097,481 7,172,970
0 16,530,680 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 3,647,267 11,921,054
0 0 0 0 0
0 0 0 2,334,109 4,883,060
$2,144,622 $31,407,676 $110,086,405 $48,511,891 $65,922,718 (3) Capital Projects: Street Improvement, Park Improvement, General Government Capital, Storm Drain Capital Improvement, and Transit Area Impact Fee funds. (4) Water Fund: Water M&O, 2019 Water Bonds, Water CIP, Water Line Extension, and Water Infrastructure Replacement funds. (5) Sewer Fund: Sewer M&O, 2019 Wastewater Bonds, Sew er CIP, Treatment Plant Construction, and Sewer Infrastructure Replacement funds.

FY 2025-26 Revenues
(All Funds)
$268.4 Million
Property Taxes
$53,102,400
Intergovernmental Revenue
$1,083,152
Sales Taxes
$35,482,568
Transient Occupancy Tax
$13,334,900
Licenses, Permits & Fines
$9,685,323 Use of Money & Property
$4,990,809
Other Taxes
$5,561,481
Charges For Services
$77,506,062
Franchise Fees
$6,482,860
Other Revenue
$16,523,456
Operating Transfers In
$30,056,769
Net Use of Reserves
$14,579,536
*$268.4 Million revenue excludes changes in fund balance and/or CIP reserve of $1.1 million and interfund transfers of $20.0 million.

Financial Information
City of Milpitas 4

FY 2024-25 Expenditures
(All Funds)
$268.4 Million
City Manager
$2,734,904
Building Safety
$5,210,855 Fire
$34,349,835
Recreation
$7,582,069
City Attorney
$1,170,511
Finance
$7,971,183
Information Technology
$5,842,414
Police
$48,727,363
Planning
$3,351,339
Office of Housing
$2,065,707
Economic Development
$1,324,076
Public Works
$33,027,582
City Clerk
$617,249
Non-Departmental
$46,758,974
City Council
$638,942
Capital Improvement Projects
$38,761,735
Human Resources
$2,502,994
Transfers Out
$25,751,584
Financial Information
5 City of Milpitas

Funded Permanent Positions by Department*
Adopted
Budget
22-23
Change
from the
prior FY
Adopted
Budget
23-24
Change
from the
prior FY
Adopted
Budget
24-25
Change
from the
prior FY
Proposed
Budget
25-26
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 5.50 0.00 6.00 0.50 5.00 (1.00) 5.00 0.00
City Clerk 2.50 0.00 3.00 0.50 3.00 0.00 3.00 0.00
Economic Development 3.00 0.00 4.00 1.00 4.00 0.00 4.00 0.00 City Attorney 3.00 3.00 3.00 0.00 3.00 0.00 3.00 0.00
Building Safety 25.00 (6.00) 24.00 (1.00) 22.00 (2.00) 21.00 (1.00) Finance 29.50 1.00 29.00 (0.50) 30.00 1.00 32.00 2.00
Fire 82.00 5.00 82.00 0.00 82.00 0.00 81.00 (1.00)
Housing 3.00 1.00 3.00 0.00 3.00 0.00 4.00 1.00
Human Resources 7.00 1.00 7.00 0.00 8.00 1.00 8.00 0.00 Information Technology 13.00 1.00 14.00 1.00 14.00 0.00 14.00 0.00 Planning 12.00 0.00 12.00 0.00 12.00 0.00 12.00 0.00
Police 127.00 3.00 128.00 1.00 128.00 0.00 126.00 (2.00) Public Works 106.00 9.00 114.00 8.00 118.00 4.00 116.00 (2.00) Recreation and
Community Services 17.00 2.00 18.00 1.00 18.00 0.00 18.00 0.00 TOTAL 440.50 20.00 452.00 11.50 455.00 3.00 452.00 (3.00) Funded Permanent Positions
455 FTEs - All Funds
Fiscal Years Adopted Budget
FTEs
FTEs Population
14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
500.00
550.00
50,000
55,000
60,000
65,000
70,000
75,000
80,000
85,000
90,000
*Population is based upon US Census estimates except in FY2019-20 the Official US Census was published, in FY2021-22 US Census republished an estimate with a decline, and subsequently population is estimated based upon 10-year US Census growth factor.

Financial Information
City of Milpitas 6

Revenues by Fund
100 General Fund ..................................................... $118,854,472 $128,469,687 $126,975,672 $138,602,707 103 1452-1474 S. Main ........................................... 87,916 96,494 77,000 80,000 105 Abandon Veh Abatement ................................. 131,758 128,940 80,000 100,000 106 Short Term Disability ........................................ 61,162 0 0 0 109 Utility Rate Assistance ..................................... 93,447 468,428 0 0 150 Redevelopment Administration ....................... 15,973 0 0 0 211 Hetch Hetchy Ground Lease ........................... 10,049 20,909 41,727 23,668 213 Public Art Fund-Nonrestricted ......................... 183,212 95,645 31,027 17,599 214 Community Planning Fee Fund ...................... 268,874 544,413 337,700 207,204 215 Community Benefit Fund ................................. 3,228 64,385 10,608 6,017 216 Affordable Housing Fund ................................. 1,314,306 910,369 148,231 84,077 217 Affordable Housing Unrestricted .................... 314,701 744,007 69,032 39,155 221 Gas Tax Fund .................................................... 1,801,314 4,812,345 2,400,276 2,357,229 225 SB1 Road Maintenance & Rehab .................. 1,607,552 1,862,882 2,027,406 2,120,238 235 95-1 Lighting/Lscape Dist ................................ 417,674 432,768 455,793 525,463 236 98-1 Lighting/Lscape Dist ................................ 69,029 77,766 91,977 92,071 237 05 Community Fclty Dist .................................. 1,410,555 1,595,078 1,342,549 1,802,960 238 08 Community Fclty Dist .................................. 2,736,063 3,087,674 3,174,117 4,735,557 250 HCD Fund .......................................................... 1,232,162 581,154 647,982 650,000 251 HCD Loan .......................................................... 261,109 0 0 0 261 Supplemental Law Enforcement .................... 51,876 132,109 109,266 5,256 262 State Asset Seizure .......................................... 186 156 310 176 263 Federal Asset Seizure ...................................... 155 1,021 1,824 1,034 267 Federal Grants Police Department ................ 145,721 45,763 0 0 268 State Grants Police Department ..................... 79,423 50,625 9,627 5,460 269 Grants Fire Department ................................... 16,569 38,887 0 0 280 Solid Waste Services ....................................... 176,302 2,081,164 176,517 1,350,600 295 Housing Authority .............................................. 942,506 689,874 165,658 117,241 310 Street Fund ........................................................ 338,921 771,428 0 75,657 311 Street CIP ........................................................... 9,038,948 4,153,967 5,810,000 9,911,235 312 Traffic Impact Fee ............................................. 0 0 0 0 314 Vehicle Registration Fee .................................. 971,677 471,322 0 4,171 315 Calaveras Widening Impact Fee .................... 80,877 4,521 0 1,245 316 Montague Widening Impact Fee .................... 0 0 0 0 Fund Number/Description 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
Financial Information
City of Milpitas 7

317 Milpitas Business Park Impact Fee ................ 0 0 0 0 320 Park Improvement Fund .................................. 1,562,596 73,953 0 83,287 321 Park Improvement CIP ..................................... 1,016,795 438,647 755,000 100,000 322 Midtown Park Fund ........................................... 8,365 672,982 0 21,909 330 General Government ........................................ 1,105,726 4,903,141 0 373,690 331 General Government CIP ................................ 20,936,741 5,552,064 9,961,100 8,608,500 334 2020 Fire Station Bonds .................................. 6,665 21,666 0 0 340 Storm Drain Development ............................... 1,613,527 228,083 306,332 78,317 341 Storm Drain CIP ................................................ 145,000 200,000 1,958,000 4,600,000 342 Storm Drain General Fund .............................. 4,403 1,433,883 500,000 513,718 350 Transit Area Impact Fee Fund ........................ 6,336,725 1,613,364 6,984,000 7,433,583 351 Transit Area Impact Fee CIP Fund ................. 3,400,000 0 8,000 6,805,000 400 Water M & O Fund ............................................ 31,029,403 31,290,575 34,177,434 35,630,787 401 Water CIP ........................................................... 11,263,154 0 3,571,000 3,920,000 402 Water Line Extension Fund ............................. 456,516 498,452 1,105,631 989,892 403 2019 Water Bonds ............................................ 36,619 69,436 0 0 405 Water Infrastructure Replacement ................. 7,026,041 3,714,727 4,325,064 4,181,026 450 Sewer M & O Fund ........................................... 21,715,502 25,313,518 23,826,215 26,496,603 451 Sewer CIP .......................................................... 15,011,440 0 10,068,000 4,817,000 452 Treatment Plant Construction ......................... 662,710 592,146 1,557,988 1,604,891 453 2017 Sewer Refunding Bonds ........................ 0 0 0 0 454 2019 Sewer Bonds ........................................... 17,423 9,844 0 0 455 Sewer Infrastructure Replacement ................ 7,156,740 357,295 753,936 427,635 500 Equipment Replacement Fund ....................... 3,875,914 3,381,895 3,612,663 3,477,344 505 Information Technology Replacement ........... 897,121 1,384,131 342,366 324,030 506 Permit Automation Fund .................................. 511,081 411,447 413,309 407,548 TOTAL $ 278,513,924 $ 234,595,030 $ 248,410,337 $ 273,810,781 Less Interfund Operating Transfers* (21,923,000) (20,001,000) (Increase) Decrease of Reserves 5,381,996 14,579,535
TOTAL BUDGET SUMMARY REVENUES $ 231,869,333 $ 268,389,316 Fund Number/Description 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
*Interfund Operating Transfers are transfers within the same fund group on the Budget Summary Financial Information
8 City of Milpitas

Financial Information
City of Milpitas 9
Revenues by Fund (Detail) 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
GENERAL FUND (100)

PROPERTY TAXES
3010 Secured & Unsecured .......................................... $22,036,593 $24,358,604 $24,290,084 $26,910,000 3013 Vehicle License Fee .............................................. 8,841,568 9,545,088 9,926,800 10,792,080 3014 Educational Revenue Augmentation Fund ........ 3,938,170 3,804,718 2,487,100 4,387,760 3051 Redevelopment Property Tax Trust Fund .......... 7,942,534 9,502,011 9,319,870 11,012,560 sub-total 42,758,865 47,210,421 46,023,854 53,102,400

SALES TAXES
3110 Sales and Use Tax ................................................ 26,608,048 30,128,378 27,740,006 27,362,676 3111 Public Safety Sales and Use Tax ........................ 1,154,762 1,131,424 1,137,554 1,134,892 3113 Measure F Sales Tax ............................................ 6,601,464 7,215,906 6,991,000 6,985,000 sub-total 27,762,810 38,475,708 35,868,560 35,482,568

OTHER TAXES
3120 Real Estate Transfer Tax ...................................... 957,985 626,302 715,484 741,600 3140 Business License Tax ........................................... 320,623 333,988 312,676 330,000 3511 Motor Vehicle In-Lieu ............................................ 87,410 84,066 60,426 90,000 sub-total 1,366,018 1,044,356 1,088,586 1,161,600

FRANCHISE FEES
3131 Electric Franchise .................................................. 1,450,797 1,681,812 1,716,085 1,890,000 3132 Gas Franchise ....................................................... 321,066 393,044 420,343 441,981 3133 Garbage Franchise-Commercial ......................... 2,929,983 3,171,086 3,090,440 3,645,879 3138 CATV Franchise .................................................... 485,940 443,780 585,000 420,000 sub-total 5,187,786 5,689,722 5,811,868 6,397,860

TRANSIENT OCCUPANCY TAX
3150 Transient Occupancy Tax ..................................... 8,012,647 11,189,757 11,811,236 13,334,900 sub-total 8,012,647 11,189,757 11,811,236 13,334,900

LICENSES, PERMITS, AND FINES
3210 Building Permit & Inspection Fees ...................... 6,579,802 3,911,650 4,509,000 3,964,000 3217 Building Plan Review Fees .................................. 2,014,445 1,946,601 2,000,000 2,380,000 3220 Fire Permit & Inspection Fees ............................. 1,478,231 1,073,154 1,064,500 1,058,000 3240 Fire Annual Permit & Inspection Fees ................ 826,845 870,174 789,013 927,868 3260 Other Licenses & Permits .................................... 48,427 48,575 47,500 50,000 3300 Fines & Forfeits ..................................................... 336,052 441,036 252,007 350,840 sub-total 11,283,802 8,291,190 8,662,020 8,730,708

USE OF MONEY AND PROPERTY
3430 Investment Interest ............................................... 193,112 590,349 414,000 1,067,673 3770 Sale of Property, Plant, & Equipment ................. 117,522 4,201 0 0 sub-total 310,634 594,550 414,000 1,067,673

INTERGOVERNMENTAL
3550 Federal Contributions ........................................... 2,241,025 483,775 340,728 0

Financial Information
10 City of Milpitas
Revenues by Fund (Detail) 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
3560 State Contributions ............................................... 413,257 1,077,102 150,000 0 3570 County Contributions ............................................ 143,835 280,957 229,844 292,552 3580 Other Restricted Grants ....................................... 38,767 43,794 20,000 20,000 sub-total 2,836,884 1,885,628 740,572 312,552

CHARGES FOR CURRENT SERVICES
3600 General Government Service Charges .............. 564,104 676,047 455,290 740,984 3610 Engineering Service Charges .............................. 801,051 856,024 1,458,500 1,527,500 3630 Fire Service Charges ............................................ 278,806 589,476 474,500 446,000 3640 Police Service Charges ........................................ 1,098,482 1,131,754 1,053,471 1,214,091 3650 Recreation Service Charges ................................ 2,360,242 2,671,826 3,951,764 3,829,043 3660 Building Service Charges ..................................... 2,428 9,363 23,500 1,600 3680 Planning Service Charges ................................... 502,489 503,903 617,000 532,000 sub-total 5,608,794 6,512,527 8,034,025 8,291,218

OTHER REVENUE
3710 Development .......................................................... 136,899 154,755 189,425 170,000 3740 Reimbursements ................................................... 0 7,474 0 0 3750 Donations ............................................................... 46,700 0 100 0 3790 Miscellaneous Other Revenue ............................ 184,598 232,213 200,000 100,000 sub-total 368,197 394,442 389,525 270,000

OPERATING TRANSFERS IN
3803 Op Trfs in from Public Art Fund ........................... 0 0 0 5,712 3806 Op Trfs in from Solid Waste Service ................... 138,558 157,997 136,505 191,169 3812 Op Trfs in from Water Fund ................................. 2,571,407 2,687,393 2,869,298 3,190,433 3815 Op Trfs in from Sewer Fund ................................. 1,482,966 1,444,196 1,503,623 1,662,305 3819 Op Trfs in from Other ............................................ 2,560,000 2,879,042 3,172,000 5,086,657 3822 Op Trfs in from General Gov't Fund.................... 0 0 450,000 0 3826 Op Trfs in from Measure I TOT Fund ................. 0 0 0 0 3847 Op Trfs in from Equipment Fund………………. 0 0 0 314,952 3852 Appn Tfr in from General Gov't Fund ................. 0 0 0 0 sub-total 6,752,931 7,168,628 8,131,426 10,120,228
TOTAL (100) 112,249,368 128,456,929 126,975,672 138,602,707 1452-1474 S. MAIN (103)
3430 Investment Interest ............................................... 10,239 16,992 0 0 3600 General Government Service Charges .............. 77,677 79,502 77,000 80,000 TOTAL (103) 87,916 96,494 77,000 80,000
ABANDON VEH ABATEMENT (105)
3570 County Contributions ............................................ 130,099 128,940 80,000 100,000 3899 Op Trfs in from Subsidiary CIP Fund .................. 1,659 0 0 0 TOTAL (105) 131,758 128,940 80,000 100,000
SHORT TERM DISABILITY (106)
3899 Op Trfs in from Subsidiary CIP Fund .................. 61,162 0 0 0

Financial Information
City of Milpitas 11
Revenues by Fund (Detail) 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
TOTAL (106) 61,162 0 0 0
UTILITY RATE ASSISTANCE (109)
3430 Investment Interest ............................................... 3,857 8,341 0 0 3790 Miscellaneous Other Revenue ............................ 89,590 460,087 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 0 0 0 0 TOTAL (109) 93,447 468,428 0 0
REDEVELOPMENT ADMINISTRATION (150)
3899 Op Trfs in from Subsidiary CIP Fund .................. 15,973 0 0 0 TOTAL (150) 15,973 0 0 0
HETCH HETCHY GROUND LEASE (211)
3430 Investment Interest ............................................... 10,049 20,909 41,727 23,668 TOTAL (211) 10,049 20,909 41,727 23,668
PUBLIC ART FUND-NONRESTRICTED (213)
3430 Investment Interest ............................................... 7,048 15,069 31,027 17,599 3710 Development .......................................................... 176,164 80,576 0 0 TOTAL (213) 183,212 95,645 31,027 17,599
COMMUNITY PLANNING FEE FUND (214)
3430 Investment Interest ............................................... 3,683 6,217 12,700 7,204 3680 Planning Service Charges ................................... 265,191 302,712 325,000 200,000 TOTAL (214) 268,874 308,929 337,700 207,204
COMMUNITY BENEFIT FUND (215)
3430 Investment Interest ............................................... 3,228 4,385 10,608 6,017 3710 Development .......................................................... 0 60,000 0 0 TOTAL (215) 3,228 64,385 10,608 6,017
AFFORDABLE HOUSING FUND (216)
3430 Investment Interest ............................................... 44,833 72,183 148,231 84,077 3710 Development .......................................................... 1,083,650 786,631 0 0 3819 Op Trfs in from Other ............................................ 0 0 0 0 3831 Appn Transfers in from General Fund ................ 0 0 0 0 TOTAL (216) 1,128,483 858,814 148,231 84,077
AFFORDABLE HOUSING FUND UNRESTR. (217)
3434 Investment Interest .............................................. 19, 475 27, 504 69, 032 39, 155 TOTAL (217) 19, 475 27, 504 69, 032 39, 155
GAS TAX FUND (221)
3430 Investment Interest ............................................... 11,609 43,199 77,647 44,042 3540 Gas Tax ................................................................... 1,789,607 2,057,753 2,322,629 2,313,187 3802 Op Trfs in from Gas Tax Fund ............................. 0 0 0 0 3809 Op Tfrs in Street Improv Fund ............................. 98 848,458 0 0 TOTAL (221) 1,801,314 2,949,410 2,400,276 2,357,229

Financial Information
12 City of Milpitas
Revenues by Fund (Detail) 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
SB1 ROAD MAINTENANCE & REHABILITATION
(225)
3434 Road Maintenance & Rehabilitation ................... 47, 186 24, 966 0 33, 544 3549 Road Maintenance & Rehabilitation ................... 1, 557,260 1, 830,348 2, 027,406 2, 086,694 TOTAL (225) 1,604,446 1,855,314 2,027,406 2,120,238
95-1 LIGHTING/LSCAPE DIST (235)
3430 Investment Interest ............................................... 698 1,716 2,507 1,422 3720 Special Assessments ............................................ 396,992 409,692 430,902 500,000 3801 Op Trfs in from General Fund .............................. 19,984 21,360 22,384 24,041 TOTAL (235) 417,674 432,768 455,793 525,463
98-1 LIGHTING/LSCAPE DIST (236)
3430 Investment Interest ............................................... 381 9,427 19,932 11,306 3720 Special Assessments ............................................ 48,042 47,833 50,612 60,000 3801 Op Trfs in from General Fund .............................. 20,606 20,506 21,433 20,765 TOTAL (236) 69,029 77,766 91,977 92,071
05 COMMUNITY FCLTY DIST (237)
3430 Investment Interest ............................................... 15,883 23,142 42,549 24,134 3720 Special Assessments ............................................ 1,394,672 1,571,936 1,300,000 1,778,826 TOTAL (237) 1,410,555 1,595,078 1,342,549 1,802,960
08 COMMUNITY FCLTY DIST (238)
3430 Investment Interest ............................................... 2,670 7,822 2,117 1,201 3720 Special Assessments ............................................ 2,733,393 3,079,852 3,172,000 4,734,356 TOTAL (238) 2,736,063 3,087,674 3,174,117 4,735,557
HCD FUND (250)
3550 Federal Contributions ........................................... 1,232,162 581,154 647,982 650,000 TOTAL (250) 1,232,162 581,154 647,982 650,000
HCD LOAN (251)
3430 Investment Interest ............................................... 42 0 0 0 TOTAL (251) 42 0 0 0
SUPPLEMENTAL LAW ENFORCEMENT (261)
3430 Investment Interest ............................................... 2,308 3,775 9,266 5,256 3560 State Contributions ............................................... 49,568 128,334 100,000 0 TOTAL (261) 51,876 132,109 109,266 5,256
STATE ASSET SEIZURE (262)
3430 Investment Interest ............................................... 186 156 310 176 3560 State Contributions ............................................... 0 0 0 0 TOTAL (262) 186 156 310 176

Financial Information
City of Milpitas 13
Revenues by Fund (Detail) 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
FEDERAL ASSET SEIZURE (263)
3430 Investment Interest ............................................... 155 1,021 1,824 1,034 TOTAL (263) 155 1,021 1,824 1,034
FEDERAL GRANTS POLICE DEPARTMENT (267)
3550 Federal Contributions ........................................... 145,721 45,763 0 0 TOTAL (267) 145,721 45,763 0 0
STATE GRANTS POLICE DEPARTMENT (268)
3430 Investment Interest ............................................... 4,214 3,968 9,627 5,460 3560 State Contributions ............................................... 75,209 46,657 0 0 TOTAL (268) 79,423 50,625 9,627 5,460
GRANTS FIRE DEPARTMENT (269)
3550 Federal Contributions ........................................... 16,569 0 0 0 3570 County Contributions ............................................ 0 38,887 0 0 TOTAL (269) 16,569 38,887 0 0
SOLID WASTE SERVICES (280)
3139 County-wide AB 939 Fee ..................................... 149,936 98,933 150,000 85,000 3219 Building Misc Fees & Permits .............................. 0 0 0 954,615 3430 Investment Interest ............................................... 10,825 16,158 26,517 15,041 3560 State Contributions ............................................... 8,195 95,209 0 20,600 3610 Engineering Service Charges .............................. 0 0 0 0 3670 Utility Charges ....................................................... 6,925 19,732 0 0 3740 Reimbursements ................................................... 0 0 0 0 3790 Miscellaneous Other Revenue ............................ 0 0 0 275,344 3822 Op Trfs in from General Gov't Fund.................... 0 0 0 0 TOTAL (280) 175,881 230,032 176,517 1,350,600
HOUSING AUTHORITY (295)
3430 Investment Interest ............................................... 654,117 446,176 65,658 37,241 3600 General Government Service Charges .............. 100,509 81,496 100,000 80,000 3770 Sale of Property, Plant, & Equipment ................. 0 87,063 0 0 TOTAL (295) 754,626 614,735 165,658 117,241
STREET FUND (310)
3430 Investment Interest ............................................... 43,667 61,180 0 75,657 3790 Miscellaneous Other Revenue ............................ 0 0 0 0 3831 Appn Transfers in from General Fund ................ 295,254 710,248 0 0 TOTAL (310) 338,921 771,428 0 75,657
STREET CIP (311)
3560 State Contributions ............................................... 155,316 1,660,442 2,700,000 0 3570 County Contributions ............................................ 1,046,620 401,811 0 0 3710 Development .......................................................... 0 0 0 0 3802 Op Trfs in from Gas Tax Fund ............................. 1,585,568 378,026 900,000 495,000 3810 Op Trfs in from Park Improvement ...................... 0 0 0 0

Financial Information
14 City of Milpitas
Revenues by Fund (Detail) 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
3815 Op Trfs in from Sewer Fund ................................. 0 0 0 0 3819 Op Trfs in from Other ............................................ 82,220 1,713,688 1,500,000 8,316,235 3822 Op Trfs in from General Gov't Fund.................... 100,000 0 0 1,100,000 3824 Op Trfs in Transit Area Fund ................................ 0 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 .................. 1,652,736 0 710,000 0 TOTAL (311) 4,622,460 4,153,967 5,810,000 9,911,235
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 .................. 0 0 0 0 TOTAL (312) 0 0 0 0
VEHICLE REGISTRATION FEE (314)
3430 Investment Interest ............................................... 8,918 5,172 0 4,171 3570 County Contributions ............................................ 962,759 466,150 0 0 3809 Op Tfrs in Street Improv Fund ............................. 0 0 0 0 3822 Op Trfs in from General Gov't Fund.................... 0 0 0 0 3829 Op Trfs in from Vehicle Registration Fee ........... 0 0 0 0 TOTAL (314) 971,677 471,322 0 4,171
CALAVERAS WIDENING IMPACT FEE (315)
3430 Investment Interest ............................................... 2,703 1,114 0 1,245 3710 Development .......................................................... 78,174 3,407 0 0 TOTAL (315) 80,877 4,521 0 1,245
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 ............................................... 0 0 0 0 TOTAL (317) 0 0 0 0
PARK IMPROVEMENT FUND (320)
3430 Investment Interest ............................................... 57,162 73,953 0 83,287 3712 Park Development Fees ....................................... 1,505,434 0 0 0 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 .................. 0 0 0 0 TOTAL (320) 1,562,596 73,953 0 83,287
PARK IMPROVEMENT CIP (321)
3815 Op Trfs in from Sewer Fund ................................. 0 0 0 0 3822 Op Trfs in from General Gov't Fund.................... 0 0 0 0 3824 Op Trfs in Transit Area Fund ................................ 0 0 0 0 3831 Appn Transfers in from General Fund ................ 0 0 0 0

Financial Information
City of Milpitas 15
Revenues by Fund (Detail) 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
3852 Appn Transfers in from General Gov't ................ 75,000 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 135,000 0 755,000 100,000 TOTAL (321) 1,016,795 438,647 755,000 100,000
MIDTOWN PARK FUND (322)
3430 Investment Interest ............................................... 8,365 16,989 0 21,909 3710 Development .......................................................... 0 655,993 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 0 0 0 0 TOTAL (320) 8,365 672,982 0 21,909
GENERAL GOVERNMENT (330)
3430 Investment Interest ............................................... 130,702 335,807 0 373,690 3801 Op Trfs in from General Fund .............................. 0 0 0 0 3809 Op Tfrs in Street Improv Fund ............................. 0 0 0 0 3810 Op Trfs in from Park Improvement ...................... 9,516 328,004 0 0 3822 Op Trfs in General Government .......................... 0 0 0 0 3823 Op Trfs in Storm Drain Fund ................................ 0 3,844 0 0 3831 Appn Transfers in from General Fund ................ 590,508 3,830,745 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 375,000 0 0 0 3982 Capital Leases ....................................................... 0 0 0 0 TOTAL (330) 1,105,726 4,498,400 0 373,690
GENERAL GOVERNMENT CIP (331)
3560 State Contributions ............................................... 315,000 342,972 250,000 0 3580 Other Restricted Grants ....................................... 134,158 700,702 0 0 3710 Development .......................................................... 200,000 0 0 0 3801 Op Trfs in from General Fund .............................. 0 0 2,400,000 0 3802 Op Trfs in from Gas Tax Fund ............................. 608,947 595,000 1,715,000 1,365,000 3803 Op Trfs in from Gas Tax Fund ............................. 261,000 142,500 50,000 75,000 3809 Op Tfrs in Street Improv Fund ............................. 0 0 0 0 3810 Op Trfs in from Park Improvement ...................... 0 500,000 900,000 3,200,000 3815 Op Trfs in from Sewer Fund ................................. 0 0 0 0 3817 Op Trfs in from Equipment Replacement ........... 161,131 0 0 1,850,000 3819 Op Trfs in from Other ............................................ 1,362,485 924,000 404,000 108,000 3824 Op Trfs in Transit Area Fund ................................ 78,000 144,000 144,000 48,000 3827 Op Trfs in from LLMD Fund ................................. 4,000 11,000 89,100 103,500 3847 Appn Transfers in from Equipment ..................... 0 0 0 0 3849 Other Appn Transfers In ....................................... 0 1,786 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 17,646,963 0 4,009,000 1,859,000 TOTAL (331) 20,771,684 3,361,960 9,961,100 8,608,500
2020 FIRE STATION BONDS (334)
3970 Bond Proceeds ...................................................... 0 0 0 0 TOTAL (331) 0 0 0 0
STORM DRAIN DEVELOPMENT (340)

Financial Information
16 City of Milpitas
Revenues by Fund (Detail) 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
3430 Investment Interest ............................................... 32,674 63,824 0 78,317 3710 Development .......................................................... 550,092 164,259 306,332 0 3831 Appn Transfers in from General Fund ................ 885,761 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 145,000 0 0 0 TOTAL (340) 1,613,527 228,083 306,332 78,317
STORM DRAIN CIP (341)
3815 Op Trfs in from Sewer Fund ................................. 0 0 0 0 3802 Op Trfs in from Gas Tax Fund ............................. 0 0 0 500,000 3809 Op Trfs in from Street Improv Fund .................... 0 0 0 700,000 3819 Op Trfs in from Other ............................................ 0 0 0 1,400,000 3822 Op Trfs in from General Gov't Fund.................... 0 200,000 0 0 3852 Appn Transfers in General Government ............ 145,000 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 0 0 1,958,000 2,000,000 TOTAL (341) 145,000 200,000 1,958,000 4,600,000
STORM DRAIN GENERAL FUND (342)
3434 Op Trfs in from Sewer Fund ................................. 4, 430 1 1,963 0 13, 718 3801 Op Trfs in from General Fund .............................. 0 0 500, 000 500, 000 TOTAL (342) 4, 430 1 1,963 500, 000 513, 718
TRANSIT AREA IMPACT FEE FUND (350)
3430 Investment Interest ............................................... 422,635 868,430 0 984,853 3710 Development .......................................................... 5,914,090 728,766 6,984,000 6,448,730 3812 Op Trfs in from Water Fund ................................. 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 0 0 0 0 TOTAL (350) 6,336,725 1,597,196 6,984,000 7,433,583
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 .................. 3,400,000 0 8,000 6,805,000 TOTAL (351) 3,400,000 0 8,000 6,805,000
WATER M & O FUND (400)
3430 Investment Interest ............................................... 194,927 523,553 428,455 585,286 3550 Federal Contributions ........................................... 148,601 0 0 0 3580 Other Restricted Grants ....................................... 56,846 59,084 0 0 3620 Public Works Service Charges ............................ 0 0 0 0 3670 Utility Charges ....................................................... 30,241,457 30,647,787 33,748,979 35,045,501 3790 Miscellaneous Other Revenue ............................ 379,560 59,517 0 0 3981 Contributions-Proprietary Fund ........................... 0 0 0 0 3809 Op Trfs in from Street Fund ................................. 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 0 0 0 0 TOTAL (400) 31,021,391 31,289,941 34,177,434 35,630,787 WATER CIP (401)
3810 Op Trfs in from Park Improvement ...................... 0 0 0 0

Financial Information
City of Milpitas 17
Revenues by Fund (Detail) 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
3824 Op Trfs in Transit Area Fund ................................ 0 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 11,263,154 0 3,571,000 3,920,000 TOTAL (401) 11,263,154 0 3,571,000 3,920,000
WATER LINE EXTENSION FUND (402)
3430 Investment Interest ............................................... 28,551 50,884 103,476 58,692 3710 Development .......................................................... 418,344 437,947 1,002,155 931,200 3790 Miscellaneous Other Revenue ............................ 9,621 9,621 0 0 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) 456,516 498,452 1,105,631 989,892
2019 WATER BONDS (403)
3970 Bond Proceeds ...................................................... 0 0 0 0 TOTAL (403) 0 0 0 0
WATER INFRASTRUCTURE REPLACEMENT (405)
3430 Investment Interest ............................................... 95,164 190,311 401,167 227,543 3670 Utility Charges ....................................................... 3,633,708 3,422,345 3,923,897 3,953,483 3899 Op Trfs in from Subsidiary CIP Fund .................. 3,195,098 0 0 0 TOTAL (405) 6,923,970 3,612,656 4,325,064 4,181,026
SEWER M & O FUND (450)
3430 Investment Interest ............................................... 22,025 321,169 286,967 340,742 3435 Gain/Loss on Investments ................................... 254,038 254,038 0 0 3670 Utility Charges ....................................................... 21,330,793 24,698,395 23,539,248 26,155,861 3550 Federal Contributions ........................................... 100,623 0 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 ................................. 11 0 0 0 3899 Op Trfs in from Subsidiary CIP Fund .................. 0 0 0 0 TOTAL (450) 21,707,490 25,273,602 23,826,215 26,496,603 SEWER CIP (451)
3899 Op Trfs in from Subsidiary CIP Fund .................. 15,011,440 0 10,068,000 4,817,000 TOTAL (451) 15,011,440 0 10,068,000 4,817,000
TREATMENT PLANT CONSTRUCTION (452)
3430 Investment Interest ............................................... 55,337 54,111 140,851 79,891 3710 Development .......................................................... 607,373 538,035 1,417,137 1,525,000 TOTAL (452) 662,710 592,146 1,557,988 1,604,891
2017 SEWER REFUNDING BONDS (453)
3430 Investment Interest ............................................... 0 0 0 0 TOTAL (453) 0 0 0 0
2019 SEWER BONDS (454)
3970 Bond Proceeds ...................................................... 0 0 0 0

Financial Information
18 City of Milpitas
Revenues by Fund (Detail) 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
TOTAL (454) 0 0 0 0
SEWER INFRASTRUCTURE REPLACEMENT (455)
3430 Investment Interest ............................................... 215,762 357,295 753,936 427,635 3899 Intrafund Trf In-Parent/Child ................................ 6,940,978 0 0 0 TOTAL (455) 7,156,740 357,295 753,936 427,635
EQUIPMENT REPLACEMENT FUND (500)
3430 Investment Interest ............................................... 71,885 158,682 312,663 177,344 3610 Engineering Service Charges .............................. 600 0 0 0 3620 Public Works Service Charges ............................ 3,227,255 3,145,354 3,300,000 3,300,000 3670 Utility Charges ....................................................... 0 0 0 0 3770 Sale of Property, Plant and Equipment .............. 80,616 12,326 0 0 3790 Miscellaneous Other Revenue ............................ 1,696 65,533 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) 3,382,052 3,381,895 3,612,663 3,477,344
INFORMATION TECHNOLOGY REPLACEMENT (505)
3430 Investment Interest ............................................... 6,613 18,758 42,366 24,030 3801 Op Trfs in from General Fund .............................. 300,000 300,000 300,000 300,000 TOTAL (505) 306,613 318,758 342,366 324,030
PERMIT AUTOMATION FUND (506)
3430 Investment Interest ............................................... 4,492 4,710 13,309 7,549 3601 General Government Service Charges .............. 506,589 406,737 400,000 400,000 TOTAL (506) 51 1,081 41 1,447 413, 309 407, 549
TOTAL REVENUES $ 265,045,540 $ 224,400,616 $ 247,910,337 $ 273,810,781 Less Interfund Operating Transfers* (21,923,000) (20,001,000) (Increase) Decrease of Reserves 5, 381,996 14, 579,535 TOTAL BUDGET SUMMARY REVENUES $ 231,369,333 $ 268,389,316 *
Interfund Operating Transfers are transfers within the same fund group on the Budget Summary

Financial Information
City of Milpitas 19
Expenditures by Fund 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
100 General Fund ......................................................... $112,275,224 $122, 026,892 $129, 199,524 $143, 102,051 103 1452-1474 S. Main ................................................ 28,578 34, 010 54, 000 12, 900 105 Abandon Veh Abatement ...................................... 129,884 150, 467 10, 000 10, 000 109 Utility Rate Assistance .......................................... 15,170 308, 016 256, 700 256, 700 150 Redevelopment Administration ............................ 16,302 1 1,358 12, 447 10, 771 180 Community Investment Fund………………… 0 0 0 460,330
211 H-Hetch Ground Lease ......................................... 37,014 35, 789 39, 000 43, 100 213 Public Art Fund-Nonrestricted .............................. 326,000 143, 957 50, 000 80, 712 214 Community Planning Fee Fund ........................... 839,370 529, 185 265, 175 427, 664 215 Community Benefit Fund ...................................... 8,890 6, 110 0 0 216 Affordable Housing Fund ...................................... 947,553 926, 027 1, 153,116 752, 070 217 Affordable Housing Unrestricted Fund ............... 0 0 0 177, 255 218 Affordable Housing Grant Fund ........................... 0 0 0 50,000 221 Gas Tax Fund ......................................................... 2,194,515 973, 026 2, 615,000 2, 360,000 222 Measure B .............................................................. 0 0 0 2, 646,235 225 SB1 Road Maintenance & Rehab ....................... 82,220 1, 713,687 1, 500,000 2, 000,000 235 95-1 Lighting/Lscape Dist ..................................... 266,593 321, 160 446, 457 538, 748 236 98-1 Lighting/Lscape Dist ..................................... 32,523 36, 197 72, 044 87, 682 237 05 Community Fclty Dist....................................... 1,336,098 1, 775,574 1, 704,769 2, 462,004 238 08 Community Fclty Dist....................................... 2,675,489 2, 940,669 3, 242,630 3, 753,199 250 HCD Fund ............................................................... 1,232,162 581, 154 647, 982 650, 000 251 HCD Loan ............................................................... 8,841 0 0 0 261 Supplemental Law Enforcement ......................... 51,416 132, 649 0 0 262 State Asset Seizure ............................................... 60,000 0 30, 000 30, 000 263 Federal Asset Seizure ........................................... 0 0 30, 000 30, 000 267 Justice Assistance Grant ...................................... 145,721 46, 763 0 0 268 Justice Assistance Grant 2009 ............................ 75,208 47, 747 0 0 269 Grant Fund ............................................................. 16,569 38, 887 0 0 280 Solid Waste Services ............................................ 694,706 840, 157 963, 432 1, 111,575 295 Housing Authority .................................................. 7,074,576 549, 928 431, 639 475, 034 310 Street Fund ............................................................. 109 848, 458 210, 000 700, 000 311 Street CIP ............................................................... 8,962,287 8, 007,294 5, 810,000 9, 911,235 314 Vehicle Registration Fee....................................... 219,745 0 500, 000 500, 000 317 Milpitas Business Pk Impact Fe .......................... 0 0 0 0 320 Park Improvement Fund ....................................... 44,516 883, 454 1, 655,000 3, 300,000

Financial Information
20 City of Milpitas
Expenditures by Fund 2022-23
Actual
2023-24
Actual
2024-25
Adopted
2025-26
Proposed
321 Park Improvement CIP ......................................... 6,024,411 3, 330,967 755, 000 100, 000 322 Midtown Park Fund ............................................... 450,000 0 0 0 330 General Government ............................................ 3,860,946 435, 484 4, 459,000 2, 459,000 331 General Government CIP ..................................... 15,810,287 9, 402,736 9, 961,100 8, 608,500 334 2020 Fire Station Bonds ....................................... 14,106,017 0 0 0 340 Storm Drain Development .................................... 0 3, 844 1, 400,000 0 341 Storm Drain CIP ..................................................... 1,032,517 1, 441,653 1, 958,000 4, 600,000 342 Storm Drain General Fund ................................... 0 0 558, 000 2, 000,000 350 Transit Area Impact Fee Fund ............................. 6,978,000 573, 660 197, 659 6, 874,218 351 Transit Area Impact Fee CIP Fund ...................... 2,518,369 1, 036,711 8, 000 6, 805,000 400 Water M & O Fund ................................................. 29,896,673 28, 103,451 33, 817,170 37, 524,235 401 Water CIP ............................................................... 9,084,311 5, 210,314 3, 571,000 3, 920,000 402 Water Line Extension Fund .................................. 0 0 0 200, 000 403 2019 Water Bonds ................................................. 9,173,153 0 0 0 405 Water Infrastructure Replmnt ............................... 3,160,546 1, 311,850 4, 817,450 4, 821,450 450 Sewer M & O Fund ................................................ 20,051,556 17, 354,230 17, 049,605 17, 263,857 451 Sewer CIP .............................................................. 13,576,431 6, 432,907 10, 068,000 4, 817,000 452 Treatment Plant Construction .............................. 0 0 500, 000 0 454 2019 Wastewater Bonds ...................................... 6,394,195 0 0 0 455 Sewer Infrastrture Repmnt ................................... 8,833,730 262, 000 9, 770,000 5, 871,000 500 Equipment Mgnt Fund .......................................... 2,706,887 2, 850,881 3, 276,846 5, 360,424 505 Information Tec Replmt ......................................... 154,905 43, 216 250, 000 940, 000 506 Permit Automation Fund ....................................... 897,873 732, 440 476, 587 286, 368 TOTAL $ 294,508,086 $ 222,434,959 $ 253,792,332 $ 288,390,316 Less Interfund Operating Transfers* ( 21,923,000) ( 20,001,000)

TOTAL BUDGET SUMMARY

EXPENDITURES
$ 231,869,332 $ 268,389,316
*
Interfund Operating Transfers are transfers within the same fund group on the Budget Summary

Financial Information
City of Milpitas 21
Expenditures by Fund (Detail)
FUND/FUNCTION Personal
Services
Supplies
C
ontractual
Services
Capital
O
utlay
Debt
S
ervice
Capital
Imp
rovements
Operating
T
ransfers
Out
Total
GENERAL FUND (100)
City Council ........................ $397,392 $241,550 $0 $0 $0 $0 $638,942 City Manager ..................... 1,621,795 1,021,800 0 0 0 0 2,643,595 City Clerk ............................ 575,249 42,000 0 0 0 0 617,249 Economic Development ... 966, 062 178, 014 0 0 0 0 1, 144,076 City Attorney ...................... 841,051 267,928 0 0 0 0 1,108,979 Building Inspection ............ 2,203,544 46,503 0 0 0 0 2,250,047 Building Safety
Administration .................... 361, 620 4, 500 0 0 0 0 366, 120 Housing and
Neighborhood Svcs .......... 465, 293 0 0 0 0 0 465, 293 Permit Center .................... 856,853 16,000 0 0 0 0 872,853 Plan Review ....................... 1,620,528 17,600 0 0 0 0 1,638,128 Design & Construction ...... 1,698,215 53,105 0 0 0 0 1,751,320 Engineering
Administration .................... 334, 908 30, 680 0 0 0 0 365, 588 Land Development ............ 1,687,256 136,400 0 0 0 0 1,823,656 Traffic Engineering ............ 694,365 122,635 0 0 0 0 817,000 Finance Administration ..... 2,510,353 393,350 0 0 0 0 2,903,703 Finance Operations .......... 2,103,876 66,336 0 0 0 0 2,170,212 Finance Purchasing .......... 0 7,095 0 0 0 0 7,095 Fiscal Services-Utilities .... 443,549 237,349 0 0 0 0 680,898 EMS Transport Services .. 0 64,800 0 0 0 0 64,800
Fire Administration ............ 3,066,384 66,878 0 0 0 0 3,133,262 Fire Prevention .................. 2,500,665 31,998 0 0 0 0 2,532,663 Fire Prevention
Administration .................... 1, 139,948 60, 391 0 0 0 0 1, 200,339 Office of Emergency
Management ...................... 267, 099 49, 000 0 0 0 0 316, 099 Operations Division ........... 24,117,900 2,944,364 0 0 0 0 27,062,264 Human Resources ............ 1,728,293 774,701 0 0 0 0 2,502,994 Information Technology .... 3,312,417 2,106,242 0 0 0 0 5,418,659 Long Range Planning ....... 73,987 0 0 0 0 0 73,987
Planning ............................. 1,998,173 78,150 0 0 0 0 2,076,323 Communications ............... 4,529,962 341,620 0 0 0 0 4,871,582 Community Relations ....... 1,213,727 35,400 0 0 0 0 1,249,127 Crossing Guards ............... 0 877,246 0 0 0 0 877,246 Investigations ..................... 5,463,204 469,407 0 0 0 0 5,932,611 Patrol Services .................. 26,815,281 1,240,261 0 0 0 0 28,055,542 Personnel & Training ........ 927,611 269,158 0 0 0 0 1,196,769 Police Administration ........ 2,293,366 16,371 0 0 0 0 2,309,737 Records .............................. 1,435,501 272,399 0 0 0 0 1,707,900

Financial Information
22 City of Milpitas
FUND/FUNCTION Personal
Services
Supplies
C
ontractual
Services
Capital
O
utlay
Debt
S
ervice
Capital
Imp
rovements
Operating
T
ransfers
Out
Total
Traffic .................................. 2,356,106 100,743 0 0 0 0 2,456,849 Code Enforcement ............ 0 618,570 0 0 0 0 618,570 Compliance ........................ 117,494 336,175 0 0 0 0 453,669 Facilities Maintenance ...... 2,540,438 1,319,039 0 0 0 0 3,859,477 Park Maintenance ............. 426,175 1,664,005 0 0 0 0 2,090,180 Public Works
Administration .................... 816, 419 109, 796 0 0 0 0 926, 215 Solid Waste Services ........ 8,000 0 0 0 0 0 8,000
Street Maintenance ........... 1,586,868 612,916 0 0 0 0 2,199,784 Trees & Landscape Mnt .. 1,068,665 631,428 0 0 0 0 1,700,093 Utility Maintenance ........... 920,384 275,844 0 0 0 0 1,196,228 Aquatics .............................. 452,670 18,315 0 0 0 0 470,985 General Classes ................ 121,921 675,256 0 0 0 0 797,177 Marketing............................ 226,417 121,410 0 0 0 0 347,827 Performing Arts .................. 123,545 101,930 0 0 0 0 225,475 Recreation Administration 2,124,993 179,170 0 0 0 0 2,304,163 Senior Services ................. 492,823 317,247 0 0 0 0 810,070 Social Services .................. 153,207 32,000 0 0 0 0 185,207 Special Events ................... 267,795 341,108 15,000 0 0 0 623,903 Sports & Fitness ................ 491,968 57,836 0 0 0 0 549,804 Youth Programs ................. 957,988 293,336 0 0 0 0 1,251,324 Debt Service ...................... 0 0 0 1,289,400 0 0 1,289,400 Non-Departmental ............. (2,110,849) 7,157,036 0 0 0 0 5,046,187 Transfers Out ..................... 0 0 0 0 0 844,806 844,806 sub-total (100) 113,408,454 27,544,391 15,000 1,289,400 0 844,806 143,102,051 1452-1474 S. MAIN (103)
1452 S. Main Street
Properties ........................... 0 12, 900 0 0 0 0 12, 900 sub-total (103) 0 12,900 0 0 0 0 12,900
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 ..... 905 0 0 0 0 0 905
Finance Operations .......... 8,445 0 0 0 0 0 8,445
Non-Departmental ............. 0 1,000 0 0 0 0 1,000
Fiscal Services-Utilities .... 421 0 0 0 0 0 421

Financial Information
City of Milpitas 23
FUND/FUNCTION Personal
Services
Supplies
C
ontractual
Services
Capital
O
utlay
Debt
S
ervice
Capital
Imp
rovements
Operating
T
ransfers
Out
Total
sub-total (150) 9,771 1,000 0 0 0 0 10,771
COMMUNITY INVESTMENT FUND (180)
Non-Departmental ............. 72,687 387,643 0 0 0 0 460,330 sub-total (109) 72,687 387,643 0 0 0 0 460,330
HETCH HETCHY GROUND LEASE (211)
Non-Departmental ............. 0 43,100 0 0 0 0 43,100 sub-total (211) 0 43,100 0 0 0 0 43,100
PUBLIC ART FUND-NONRESTRICTED (213)
Transfers Out ..................... 0 0 0 0 0 80,712 80,712 sub-total (213) 0 0 0 0 0 80,712 80,712
COMMUNITY PLANNING FEE FUND (214)
Long Range Planning ....... 221,961 0 0 0 0 0 221,961 Planning ............................. 117,399 0 0 0 0 0 117,399 Transfers Out ..................... 0 0 0 0 0 88,304 88,304 sub-total (214) 339,360 0 0 0 0 88,304 427,664
AFFORDABLE HOUSING FUND (216)
City Manager ..................... 36,309 27,500 0 0 0 0 63,809 Housing .............................. 253,573 20,799 0 0 0 0 274,372 Planning ............................. 95,651 0 0 0 0 0 95,651 City Attorney ...................... 0 22,279 0 0 0 0 22,279 Finance Operations .......... 112,803 0 0 0 0 0 112,803 Transfers Out ..................... 0 0 0 0 0 183,156 183,156 sub-total (216) 498,336 70,578 0 0 0 183,156 752,070
AFFORDABLE HOUSING UNRESTRICTED (217)
Housing .............................. 177,255 0 0 0 0 0 177,255 sub-total (105) 177,255 0 0 0 0 0 177,255
AFFORDABLE HOUSING GRANT FUND (218)
Housing .............................. 0 50,000 0 0 0 0 50,000 sub-total (105) 0 50,000 0 0 0 0 50,000
GAS TAX FUND (221)
Transfers Out ..................... 0 0 0 0 0 2,360,000 2,360,000 sub-total (221) 0 0 0 0 0 2,360,000 2,360,000
MEASURE B (222)
Transfers Out ..................... 0 0 0 0 0 2,646,235 2,646,235 sub-total (225) 0 0 0 0 0 2,646,235 2,646,235

Financial Information
24 City of Milpitas
FUND/FUNCTION Personal
Services
Supplies
C
ontractual
Services
Capital
O
utlay
Debt
S
ervice
Capital
Imp
rovements
Operating
T
ransfers
Out
Total
SB1 ROAD MAINT & REHAB (225)
Transfers Out ..................... 0 0 0 0 0 2,000,000 2,000,000 sub-total (225) 0 0 0 0 0 2,000,000 2,000,000
95-1 LIGHTING/LSCAPE DIST (235)
Land Development ............ 400 101,000 0 0 0 0 101,400 Public Works
Administration .................... 6, 424 0 0 0 0 0 6, 424 Street Maintenance ........... 40,134 0 0 0 0 0 40,134 Trees & Landscape Mnt ... 150,544 106,353 0 0 0 0 256,897 Transfers Out ..................... 0 0 0 0 0 133,893 133,893 sub-total (235) 197,502 207,353 0 0 0 133,893 538,748
98-1 LIGHTING/LSCAPE DIST (236)
Land Development ............ 400 5,500 0 0 0 0 5,900
Street Maintenance ........... 500 0 0 0 0 0 500
Trees & Landscape Mnt ... 29,493 28,496 0 0 0 0 57,989 Transfers Out ..................... 0 0 0 0 0 23,293 23,293 sub-total (236) 30,393 33,996 0 0 0 23,293 87,682
05 COMMUNITY FCLTY DIST (237)
Park Maintenance ............. 321,520 106,799 0 0 0 0 428,319 Public Works
Administration .................... 160, 061 0 0 0 0 0 160, 061 Street Maintenance ........... 446,455 0 0 0 0 0 446,455 Trees & Landscape Mnt ... 847,122 183,941 0 0 0 0 1,031,063 Non-Departmental ............. 0 7,500 0 0 0 0 7,500
sub-total (237) 1,775,158 298,240 0 0 0 388,606 2,462,004 08 COMMUNITY FCLTY DIST (238)
Park Maintenance ............. 0 72,799 0 0 0 0 72,799 Non-Departmental ............. 0 5,400 0 0 0 0 5,400
Transfers Out ..................... 0 0 0 0 0 3,675,000 3,675,000 sub-total (238) 0 78,199 0 0 0 3,675,000 3,753,199
HCD FUND (250)
Housing and
Neighborhood Svcs .......... 0 643,000 0 0 0 0 643,000 Non-Departmental ............. 0 7,000 0 0 0 0 7,000
sub-total (250) 0 650,000 0 0 0 0 650,000
STATE-ASSET SEIZURE (262)
Investigations ..................... 0 0 30,000 0 0 0 30,000

Financial Information
City of Milpitas 25
FUND/FUNCTION Personal
Services
Supplies
C
ontractual
Services
Capital
O
utlay
Debt
S
ervice
Capital
Imp
rovements
Operating
T
ransfers
Out
Total
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 ........................ 670,598 249,745 0 0 0 0 920,343 City Manager ..................... 0 9,166 0 0 0 0 9,166 Transfers Out ..................... 0 0 0 0 0 182,066 182,066 sub-total (280) 670,598 258,911 0 0 0 182,066 1,111,575 HOUSING AUTHORITY (295)
Housing .............................. 0 383,100 0 0 0 0 383,100 1432 S. Main Street
Properties ........................... 0 34, 300 0 0 0 0 34, 300 City Attorney ...................... 0 8,487 0 0 0 0 8,487 Non-Departmental ............. 0 49,147 0 0 0 0 49,147 sub-total (295) 0 475,034 0 0 0 0 475,034 STREET IMPROVEMENT (310)
Transfers Out ..................... 0 0 0 0 0 700,000 700,000 sub-total (310) 0 0 0 0 0 700,000 700,000
STREET CIP (311)
Capital Improvement
Projects ............................... 0 0 0 0 9, 911,235 0 9, 911,235 sub-total (311) 0 0 0 0 9,911,235 0 9,911,235
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 3,300,000 3,300,000 sub-total (320) 0 0 0 0 0 3,300,000 3,300,000
PARK IMPROVEMENT CIP (321)
Capital Improvement
Projects ............................... 0 0 0 0 100, 000 0 100, 000 sub-total (321) 0 0 0 0 100,000 0 100,000
GENERAL GOVERNMENT (330)
Transfers Out ..................... 0 0 0 0 0 2,459,000 2,459,000 sub-total (330) 0 0 0 0 0 2,459,000 2,459,000

Financial Information
26 City of Milpitas
FUND/FUNCTION Personal
Services
Supplies
C
ontractual
Services
Capital
O
utlay
Debt
S
ervice
Capital
Imp
rovements
Operating
T
ransfers
Out
Total
GENERAL GOVERNMENT CIP (331)
Capital Improvement
Projects ............................... 0 0 0 0 8, 608,500 0 8, 608,500 Transfers Out ..................... 0 0 0 0 0 0 0
sub-total (331) 0 0 0 0 8,608,500 0 8,608,500
STORM DRAIN CIP (341)
Capital Improvement
Projects ............................... 0 0 0 0 4, 600,000 0 4, 600,000 Transfers Out ..................... 0 0 0 0 0 0 0
sub-total (341) 0 0 0 0 4,600,000 0 4,600,000
STORM DRAIN GENERAL FUND (342)
Transfers Out ..................... 0 0 0 0 0 2, 000,000 2, 000,000 sub-total (342) 0 0 0 0 0 2,000,000 2,000,000
TRANSIT AREA IMPACT FEE FUND (350)
City Attorney ...................... 0 21,218 0 0 0 0 21,218 Transfers Out ..................... 0 0 0 0 0 6,853,000 6,853,000 sub-total (350) 0 21,218 0 0 0 6,853,000 6,874,218
TRANSIT AREA IMPACT FEE CIP FUND (351)
Capital Improvement
Projects ............................... 0 0 0 0 6, 805,000 0 6, 805,000 sub-total (351) 0 0 0 0 6,805,000 0 6,805,000
WATER M & O FUND (400)
City Manager ..................... 0 9,167 0 0 0 0 9,167 Facilities Maintenance ...... 0 10,000 0 0 0 0 10,000 Fiscal Services-Utilities .... 878,359 383,818 0 0 0 0 1,262,177 Compliance ........................ 274,685 92,543 0 0 0 0 367,228 City Attorney ...................... 0 9,548 0 0 0 0 9,548 Public Works
Administration .................... 778, 783 292, 886 0 0 0 0 1, 071,669 Street Maintenance ........... 86,849 0 0 0 0 0 86,849 Utility Engineering ............. 775,834 196,107 0 0 0 0 971,941 Utility Maintenance ........... 2,706,197 917,227 41,000 0 0 0 3,664,424 Equipment to be
Depreciated ........................ 0 0 133,81 6 0 0 0 133,816 Non-Departmental ............. 75,216 26,823,692 0 0 0 0 26,898,908 Transfers Out ..................... 0 0 0 0 0 3,038,508 3,038,508 sub-total (400) 5,575,923 28,734,988 174,816 0 0 3,038,508 37,524,235 WATER CIP (401)
Capital Improvement
Projects ............................... 0 0 0 0 3, 920,000 0 3, 920,000

Financial Information
City of Milpitas 27
FUND/FUNCTION Personal
Services
Supplies
C
ontractual
Services
Capital
O
utlay
Debt
S
ervice
Capital
Imp
rovements
Operating
T
ransfers
Out
Total
sub-total (401) 0 0 0 0 3,920,000 0 3,920,000
WATER LINE EXTENSION FUND (402)
Transfers Out ..................... 0 0 0 0 0 200,000 200,000 sub-total (402) 0 0 0 0 0 200,000 200,000
WATER INFRASTRUCTURE REPLACEMENT (405)
Debt Service ...................... 0 0 0 1,044,450 0 0 1,044,450 Non-Departmental ............. 0 3,000 0 0 0 0 3,000
Transfers Out ..................... 0 0 0 0 0 3,774,000 3,774,000 sub-total (405) 0 3,000 0 1,044,450 0 3,774,000 4,821,450 SEWER M & O FUND (450)
City Manager ..................... 0 9,167 0 0 0 0 9,167 Fiscal Services-Utilities .... 464,365 325,955 0 0 0 0 790,320 Facilities Maintenance ...... 0 10,000 0 0 0 0 10,000
Compliance ........................ 182,765 37,939 0 0 0 0 220,704 Public Works
Administration .................... 669, 908 60, 615 0 0 0 0 730, 523 Street Maintenance ........... 74,443 0 0 0 0 0 74,443 Utility Engineering ............. 583,621 90,738 0 0 0 0 674,359 Utility Maintenance ........... 1,233,683 588,876 0 0 0 0 1,822,559 Debt Service ...................... 0 0 0 2,424,825 0 0 2,424,825 Non-Departmental ............. 75,216 8,803,484 45,109 0 0 0 8,923,809 Transfers Out ..................... 0 0 0 0 0 1,583,148 1,583,148 sub-total (450) 3,284,001 9,926,774 45,109 2,424,825 0 1,583,148 17,263,857 SEWER CIP (451)
Capital Improvement
Projects ............................... 0 0 0 0 4, 817,000 0 4, 817,000 sub-total (451) 0 0 0 0 4,817,000 0 4,817,000
SEWER INFRASTRUCTURE REPLACEMENT (455)
Transfers Out ..................... 0 0 0 0 0 5,871,000 5,871,000 sub-total (455) 0 0 0 0 0 5,871,000 5,871,000
EQUIPMENT MGNT FUND (500)
Compliance ........................ 0 10,000 0 0 0 0 10,000 Operations ........................ 0 0 24,408 0 0 0 24,408 Fleet Maintenance ............ 1,053,637 1,199,162 98,000 0 0 0 2,350,799 Public Works
Administration .................... 232, 733 0 0 0 0 0 232, 733 Equipment to be
Depreciated ........................ 0 0 270, 802 0 0 0 270, 802 Non-Departmental ............. 0 306,730 0 0 0 0 306,730 Transfers Out ..................... 0 0 0 0 0 2,164,952 2,164,952

Financial Information
28 City of Milpitas
FUND/FUNCTION Personal
Services
Supplies
C
ontractual
Services
Capital
O
utlay
Debt
S
ervice
Capital
Imp
rovements
Operating
T
ransfers
Out
Total
sub-total (500) 1,286,370 1,515,892 393,210 0 0 2,164,952 5,360,424 INFORMATION TECH REPLMT (505)
Information Technology .... 0 0 250,000 0 0 0 250,000
Transfers Out ..................... 0 0 0 0 0 690,000 690,000 sub-total (505) 0 0 250,000 0 0 690,000 940,000
PERMIT AUTOMATION FUND (506)
Permit Center .................... 0 40,000 0 0 0 0 40,000 Plan Review ....................... 43,707 0 0 0 0 0 43,707 Fire Prevention
Administration .................... 0 16, 000 0 0 0 0 16, 000 Information Technology .... 18,105 155,650 0 0 0 0 173,755 Transfers Out ..................... 0 0 0 0 0 12,905 12,905 sub-total (506) 61, 812 21 1,650 0 0 0 12, 905 286, 367 TOTAL EXPENDITURES 127,397,620 70 ,781,567 938, 135 4,758,675 38, 761,735 45,752,584 28 8,390,316 Less Interfund Operating
Transfers* 0 0 0 0 0 (20,001,000) (20,001,000)

TOTAL BUDGET

SUMMARY

EXPENDITURES
$127,397,620 $70,781,567 $938,135 $4,758,675 $38,761,735 $25,751,584 $268,389,316

Financial Information
City of Milpitas 29
Expenditures by Function
Function General
Fund(1)
Housing
Authority
Water
Fund(2)
Sewer
Fund(3)
Other
Funds(4) Total
City Council ........................... $638,942 $0 $0 $0 $0 $638,942 City Manager ........................ 2,643,595 0 9,167 9,167 72,975 2, 734,904 City Clerk ............................... 617, 249 0 0 0 0 617, 249 Economic Development ...... 1,324,076 0 0 0 0 1, 324,076 City Attorney ......................... 1,108,979 8,487 9,548 0 43,497 1, 170,511 Building Inspection ............... 2,250,047 0 0 0 0 2, 250,047 Building Safety
Administration ....................... 366, 120 0 0 0 0 366, 120 Housing ................................. 537,980 383, 100 0 0 1, 144,627 2, 065,707 Permit Center ....................... 872,853 0 0 0 40,000 912, 853 Plan Review .......................... 1,638,128 0 0 0 43,707 1, 681,835 Design & Construction ......... 1, 751,320 0 0 0 0 1, 751,320 Engineering Administration . 365,588 0 0 0 0 365, 588
Land Development ............... 1,823,656 0 0 0 107,300 1, 930,956 Traffic Engineering ............... 817,000 0 0 0 0 817, 000 Finance Administration ........ 2,938, 812 0 0 0 0 2, 938,812 Finance Operations ............. 2,178,657 0 0 0 112,803 2, 291,460 Finance Purchasing ............. 7,095 0 0 0 0 7,095 Fiscal Services-Utilities ....... 681,319 0 1,262,177 790,320 0 2, 733,816 EMS Transport Services ..... 64, 800 0 0 0 0 64, 800
Fire Administration ............... 3,133,262 0 0 0 0 3, 133,262 Fire Prevention ..................... 2,532,663 0 0 0 0 2, 532,663 Fire Prevention
Administration ....................... 1, 200,339 0 0 0 16, 000 1, 216,339 Office of Emergency
Management ......................... 316, 099 0 0 0 0 316, 099 Operations Division .............. 27,062,264 0 0 0 24,408 27, 086,672 Human Resources ............... 2, 502,994 0 0 0 0 2, 502,994 Information Technology ....... 5,418,659 0 0 0 423,755 5, 842,414 Long Range Planning .......... 73,987 0 0 0 221,961 295, 948 Planning ................................ 2,076,323 0 0 0 213,050 2, 289,373 Communications .................. 4,871,582 0 0 0 0 4, 871,582 Community Relations .......... 1,249,127 0 0 0 0 1, 249,127 Crossing Guards .................. 877,246 0 0 0 0 877, 246 Investigations ........................ 5,932,611 0 0 0 60,000 5, 992,611 Patrol Services ..................... 28,055,542 0 0 0 0 28, 055,542 Personnel & Training .......... 1,196,769 0 0 0 0 1, 196,769 Police Administration ........... 2,309,737 0 0 0 0 2, 309,737 Records ................................. 1,707,900 0 0 0 0 1, 707,900 Traffic ..................................... 2,466,849 0 0 0 0 2, 466,849

Financial Information
30 City of Milpitas
Function General
Fund(1)
Housing
Authority
Water
Fund(2)
Sewer
Fund(3)
Other
Funds(4) Total
Code Enforcement ............... 766,018 0 0 0 0 766,018 Compliance ........................... 453, 669 0 367, 228 220, 704 10, 000 1, 051,601 Facilities Maintenance ......... 3,859,477 0 10,000 10,000 0 3, 879,477 Fleet Maintenance ............... 0 0 0 0 2,350,799 2, 350,799 Park Maintenance ................ 2,090,180 0 0 0 501,118 2, 591,298 Public Works
Administration ....................... 926, 215 0 1, 071,669 730, 523 399, 218 3, 127,625 Solid Waste Services ........... 17,857 0 0 0 920,343 938, 200 Street Maintenance .............. 2,199,784 0 86,849 74,443 487,089 2, 848,165 Trees & Landscape Mnt ..... 1,700,093 0 0 0 1,345,949 3, 046,042 Utility Engineering ................ 0 0 971, 941 674, 359 0 1, 646,300 Utility Maintenance .............. 1,196,228 0 3,664,424 1,822,559 0 6, 683,211 Aquatics ................................. 470,985 0 0 0 0 470, 985 General Classes ................... 797,177 0 0 0 0 797, 177 Marketing............................... 347, 827 0 0 0 0 347, 827 Performing Arts ..................... 225,475 0 0 0 0 225, 475 Recreation Administration ... 2,304,163 0 0 0 0 2, 304,163 Senior Services .................... 810,070 0 0 0 0 810, 070 Social Services ..................... 201, 341 0 0 0 0 201, 341 Special Events ...................... 623,903 0 0 0 0 623, 903 Sports & Fitness .................. 549,804 0 0 0 0 549, 804 Youth Programs .................... 1,251,324 0 0 0 0 1, 251,324 1432 S. Main Street
Properties .............................. 0 34, 300 0 0 0 34, 300 1452 S. Main Street
Properties .............................. 12, 900 0 0 0 0 12, 900 Debt Service ......................... 1, 289,400 0 1, 044,450 2, 424,825 0 4, 758,675 Equipment to be
Depreciated ........................... 0 0 133, 816 45, 109 270, 802 449, 727 Non-Departmental ................ 5,303,887 49,147 26,901,908 8,878,700 369,730 41, 503,372 Capital Improvement
Projects .................................. 0 0 3, 920,000 4, 817,000 30, 024,735 38, 761,735 Transfers Out* ...................... 844, 806 0 3, 092,508 2, 637,148 19, 177,122 25, 751,584 TOTAL $ 143,852,752 $ 475,034 $ 42,545,685 $ 23,134,857 $ 58,380,988 $ 268,389,316 * Interfund Transfers Out are excluded from this schedule (1) General Fund, Abandon Vehicle Abatement Fund, 1452 S. Main St Fund, Community Investm ent Fund and administration funds of the f
ormer Redevelopment Agency.
(2) W
ater Fund includes Water Maintenance & Operations Fund, 2019 Water Bonds Fund, Water CIP Fund, Water Line Extension Fund, and Water Infrastructure Replacement Fund.
(3) S
ewer Fund includes Sewer Maintenance & Operations Fund, 2019 Wastewater Bonds Fund, Sewer Fund CIP , Treatment Plant Construction Fund and Sewer Infrastructure replacement Fund. (4) O
ther 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, S
olid Waste Services Fund, Street Improvement Fund, Park Improvement Funds, General Government Capital Improvement Fund, Storm D
rain Capital Improvement Fund, and Transit Area Impact Fee Fund.

Financial Information
City of Milpitas 31
Operating Transfers Statement
Origin and Purpose of Transfer Transfer
Distribution
From the General Fund To the LLMD 95-1 Fund for:

General Benefit Contribution 23,191
sub-total 23,191
From the General Fund To the LLMD 98-1 Fund for:

General Benefit Contribution 21, 223
sub-total 21,223
From the General Fund To the Storm General Fund for:

Contribution to Storm Drain 500, 000
sub-total 500, 000
From the Public Art Fund To the General Government CIP for:

Public Art Project (3489) 75, 000
sub-total 75,000
From the Gas Tax Fund To the General Government CIP for:

Annual Sidewalk, Curb & Gutter Repair (3426) 765,000
Annual Street Light, Signal, and Signage (3440) 600, 000 sub-total 1,365,000
From the Gas Tax Fund To the Street CIP for:

ADA Curb Ramp Transition Program (4283) 220, 000
Street Pavement Restriping (4295) 150,000
SS4A Safe Route to School Program (4312) 125, 000
sub-total 495,000
From the Gas Tax Fund To the Storm Drain CIP for:

Technology Drive Utilities and Road Improvement (3725) 500, 000 sub-total 500,000
From the Measure B Fund To the Street CIP for:

Bike and Pedestrian Outreach (4306) 190, 000
Street Resurfacing Project 2025-26 (4307) 2, 456,235
sub-total 2, 646,235

Financial Information
32 City of Milpitas
Origin and Purpose of Transfer Transfer
Distribution
From the SB1 RMRA
To the Street CIP for:

Street Resurfacing Project 2025-26 (4307) 2, 000,000
sub-total 2,000,000
From the 95-1 Light &
Landscape Maint D
To the General Government CIP for:

McCarthy Blvd. LLMD Improvement 95-1 (3402) 83,500
sub-total 83,500
From the 98-1 Light &
Landscape Maint D
To the General Government CIP for:

Sinclair LLMD Improvements 98-1 (3411) 20, 000
sub-total 20,000
From the 2008 Community Facility Dist
To the General Fund for:

Operating Cost Reimbursement 4, 360,000
sub-total 4, 360,000
From the Solid Waste Services Fund To the General Fund for:

Operating Cost Reimbursement 191, 169
sub-total 191,169
From Street Improvement Fund To the Storm Drain CIP for:

Technology Drive Utilities and Road Improvement (3725) 700, 000 sub-total 700,000
From the Vehicle Registration Fee
Fund*
To the Street CIP Fund for:

Street Resurfacing Project 2025-26 (4307) 500, 000
sub-total 500,000
From the Park Improvement Fund* To the General Government CIP for:

Sinnott Park Renovation (3471) 1, 700,000
Sports Center Field Visitor Bleacher - CIP 3505 (3505) 1, 500,000 sub-total 3,200,000
From the Park Improvement Fund* To the Subsidiary CIP Fund for:

Pickleball Project (5116) 100, 000
sub-total 100,000

Financial Information
City of Milpitas 33
Origin and Purpose of Transfer Transfer
Distribution
From the General Government * To the General Government CIP for:

On-Call Facilities Maintenance & Repairs (3462) 400,000 Fire Station Improvements (3403) 100, 000
City Building Improvements (3406) 1, 075,000
City Building Roofing Repa (3422) 200, 000
Capital Improvement Program Administration (3490) 84,000 sub-total 1,859,000
From the General Government * To the Street CIP for:

SS4A Safe Route to School Program (4312) 600, 000
sub-total 600,000
From the Storm Drain General Fund*
To the Storm Drain CIP for:

Technology Drive Utilities and Road Improvement (3725) 2,000,000 sub-total 2,000,000
From the Transit Area Impact Fee
Fund*
To the Subsidiary CIP Fund for:

Land/Right-of-Way Value Determination (2010) 5, 000
S Milpitas Blvd Veh. Bridg (2016) 6, 300,000
Trade Zone/Montague Park - Central (2023) 500, 000
sub-total 6,805,000
From the Transit Area Impact Fee
Fund*
To the General Government CIP for:

Capital Improvement Program Administration (3490) 48,000 sub-total 48,000
From the Water M&O Fund To the General Fund for:

Operating Cost Reimbursement 3, 190,433
sub-total 3,190,433
From the Water Line Extension Fund To the Subsidiary CIP Fund for:

Hydrant Replacement Program (7110) 200,000
sub-total 200,000
From the Water Infrastructure
Replacement
To the General Government CIP for:

Capital Improvement Program Administration (3490) 54, 000 sub-total 54,000

Financial Information
34 City of Milpitas
Origin and Purpose of Transfer Transfer
Distribution
From the Water Infrastructure
Replacement
To the Storm Drain CIP for:

Technology Drive Utilities and Road Improvement (3725) 400,000 sub-total 400,000
From the Water Infrastructure
Replacement*
To the Subsidiary CIP Fund for:

Water Conservation Prgrm (7126) 200, 000
Supervisory Control & Data (7127) 200, 000
Minor Water Projects (7133) 500,000
Asset Renewal and Replacement Program (7141) 350, 000
Pinewood Well Facility Rehabilitation Project (7147) 400, 000 Pressure Reducing Facilities Relocation Project (7148) 1, 185,000 Sunnyhills Turnout Rehabilitation Project (7149) 135,000 Sunnyhills Turnout Rehabilitation Project (7149) 750, 000 sub-total 3,720,000
From the Sewer M & O Fund To the General Fund for:

Operating Cost Reimbursement 1, 662,305
sub-total 1, 662,305
From the Sewer Infrastructure
Replacement*
To the General Government CIP for:

Capital Improvement Program Administration (3490) 54, 000 sub-total 54, 000
From the Sewer Infrastructure
Replacement*
To the Storm Drain CIP for:

Technology Drive Utilities and Road Improvement (3725) 1, 000,000 sub-total 1,000,000
From the Sewer Infrastructure
Replacement*
To the Subsidiary CIP Fund for:

On-Call Sewer Maintenance & Repair Services (6134) 100, 000 Sewer Pump Station Rehab. Program (6124) 800,000
SJ Water Pollution Control (6118) 3, 551,000
Sanitary Sewer CCTV Inspections & Improvements (6135) 100, 000 Sanitary Sewer Pipeline Improvement-Phase 1 (6138) 266, 000 sub-total 4, 817,000
From the Equipment Replacement*
To the General Government CIP for:

Higuera Adobe Caretaker Cottage Renovation (3475) 1,850,000 sub-total 1,850,000

Financial Information
City of Milpitas 35
Origin and Purpose of Transfer Transfer
Distribution
From Technology Replacement Fund*
To the Street CIP for:

Fire Station No. 3 Replacement (3474) 400, 000
Strickroth Park Renovation (3473) 290, 000
sub-total 690, 000
TOTAL TRANSFERS $45,730,056
Note: *Interfund Transfers, within the same fund group, are not included in the Budget Summary.

Utility Funds Reserve Allocation
Financial Information
City of Milpitas 36

General Fund Reserves Summary
Per Annual Comprehensive Financial Statement
Fiscal Year 2019-20 to 2023-24
Nonspendable:

Loan receivable $0.0 $0.0 $0.0 $0.0 $0.0
Prepaids, materials, supplies and deposits $0.6 $0.6 $0.7 $0.7 $0.8 Property held for resale $4.2 $4.2 $4.2 $4.2 $4.2
Advance to Other Funds $5.4 $0.0 $0.0 $0.0 $0.0
Subtotal Nonspendable $10.2 $4.8 $4.9 $4.9 $5.0
Committed to:

PERS stabilization* $33.9 $2.8* $5.1* $6.1* $8.0
Artificial turf replacement $1.2 $1.4 $1.7 $1.9 $1.9
Technology replacement $2.0 $2.0 $2.0 $2.0 $0.4
Facilities replacement $7.0 $7.0 $7.0 $7.0 $6.2
Community Investment Program $0.0 $0.0 $0.0 $0.0 $7.2
Subtotal Committed $44.1 $10.4 $10.7 $10.9 $23.7
Assigned to:

Change in investment market values $1.1 $0.0 $0.0 $0.0 $0.0 Uninsured claims payable $2.0 $2.3 $2.3 $2.8 $2.9
Contracts $3.0 $2.4 $2.5 $3.6 $2.3
Other assigned $0.0 $1.8 $1.2 $0.5 $2.2
General government capital projects $0.0 $0.0 $0.0 $0.0 $0.0 Subtotal Assigned $6.1 $6.5 $6.0 $6.9 $7.4
Unassigned:

General Fund Contingency Reserve $17.3 $18.3 $18.5 $19.8 $20.8 Budget stabilization $17.1 $18.3 $18.5 $19.8 $20.8
Future deficit $0.0 $1.5 $1.5 $1.5 $1.5
ERAF Reserve $0.0 $0.0 $1.2 $2.3 $3.6
†SPAR (Strategic Property Acquisition Revenue) $0.0 $0.0 $0.0 $0.7 $0.7 Unassigned $0.0 $0.2 $0.3 $0.7 $1.8
Subtotal Unassigned $34.4 $38.3 $40.0 $44.8 $49.2
Total fund balances $94.8 $60.0 $61.6 $67.5 $85.3
($ in Million) FY2020 FY2021 FY2022 FY2023 FY2024
*$33.9 million of PERS stabilization are put into a Section 115 Pension Trust on June 30, 2021 at Council’s direction.

Financial Information
City of Milpitas 37

Gann Appropriations Limit Analysis
Article XIIIB of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Appropriations Limit, was approved by California voters in November 1979 and placed limits on the amount of proceeds of taxes that state and local governmental agencies can receive and spend each year. If an agency receives more revenue than the Appropriations Limit, the excess revenue must be returned to the taxpayers through a tax reduction or refund within the next two years. Alternatively, the agency can increase its Appropriations Limit through voters’ approval.

Each year’s limit is based on the amount of tax proceeds that were authorized to be spent in Fiscal Year (FY) 1978-79 in each agency, modified for changes in inflation and population in each subsequent year. The City Council must adopt, by resolution, an Appropriations Limit for the following year. Using the population and per capita personal income change factors provided by the State of California, the City’s Appropriations Limit for FY 2025-26 has been computed to be $149,704,437. Appropriations subject to the limitation in FY 2025-26 budget total $104,149,141 that is $45,555,296 less than the computed limit.

The following chart shows the annual Appropriations Limit and the tax proceeds received since FY 2016-17.

The amounts for Tax Proceeds have been restated to exclude Franchise Fees, which were inadvertently included in the past, which is inconsistent with the law. The City has not exceeded its annual Appropriations Limit in any single fiscal year. The City has been under 80% of the limitation and should not be impacted by the Appropriations Limit.

Fiscal Years
In Millions
City of Milpitas Annual Appropriations Limit
16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 0 50
100
150
200
Limit Tax Proceeds
*In prior years, Franchise Fees were inadvertently included in the calculation of the tax proceeds, which is inconsistent with the law. This chart has been corrected to show only tax proceeds subject to the limit.

Financial Information
City of Milpitas 38

FISCAL YEAR 2024-25
Calculation of Appropriations Limit
On June 5, 1990, the California electorate passed Proposition 111, which modified the method of adjusting the annual appropriations limit. Beginning with FY 1990-91 appropriations limit, the City may choose from the following indices when determining the adjustment factor:

The annual growth in the City's population OR the annual growth in the County's population as provided by the State Department of Finance.

AND
The annual growth in the California Per Capita Personal Income OR the growth in the non-residential assessed valuation due to new construction within the City.

In computing the FY 2025-26 appropriations limit, the population growth of the City and the California Per Capita Personal Income change were used.

Fiscal Year 2023-24 Limit $ 140,254,073
Per Capita Change 1.0644
Population Change 1.0028
Calculation Factor FY 25-26 1.0674
FY 25-26 Limit $ 149,704,437
Appropriations Subject to Limit $ 104,149,141
Appropriations under Limit $ 45,555,296
Financial Information
City of Milpitas 39

Legal Bonded Debt Margin
City of Milpitas (as of June 30, 2025)

ASSESSED VALUATION
Total property assessed value, net of exempt real property $26,227,211,781 BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $983,520,442 AMOUNT OF DEBT SUBJECT TO LIMIT:

Total Bonded Debt $60,610,000
Less Bonds not subject to debt limit:
2017 Wastewater Revenue Refunding Bonds ($1,205,000)
2019 Wastewater Revenue Bonds ($27,310,000)
2019 Water Revenue Bonds ($15,485,000)
2020 Lease Revenue Bonds ($16,610,000)
Total Bonds not subject to debt limit ($60,610,000)
Amount of debt subject to limit $0
LEGAL BONDED DEBT MARGIN $983,520,442
(a) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.

Debt Summary (as of June 30, 2025)
Fiscal Year Principal Payment Interest Payment
2017 Wastewater
Revenue
Refunding
Bonds
2019
Wastewater
Revenue
Bonds
2019 Water
Revenue
Bonds
2020 Lease
Revenue
Bonds
2017 Wastewater
Revenue
Refunding
Bonds
2019
Wastewater
Revenue
Bonds
2019 Water
Revenue
Bonds
2020
Lease
Revenue
Bonds
2026 590,000 585,000 355,000 625,000 45,500 1,204,325 689,450 664,400 2027 615,000 615,000 375,000 735,000 15,375 1,174,325 671,700 639,400 2028 645,000 395,000 830,000 1,142,825 652,950 610,000
2029 680,000 415,000 870,000 1,109,700 633,200 576,800
2030-2034 3,940,000 2,405,000 4,880,000 4,989,750 2,833,750 2,334,800 2035-2039 5,030,000 3,060,000 5,950,000 3,874,250 2,170,000 1,276,800 2040-2044 6,345,000 3,825,000 2,720,000 2,555,500 1,402,000 164,200 2045-2049 7,735,000 4,655,000 1,144,500 573,000
2050-2051 1,735,000 34,700
Total $1,205,000 $27,310,000 $15,485,000 $16,610,000 $60,875 $17,229,875 $9,626,050 $6,266,400 Unamortized
bond premium
141,712 4,579,552 2,449,706 2,778,813
Credit/Bond Ratings by S&P – City AAA; Water
Utility AA+; Wastewater Utility AA+
2017 Wastewater Revenue Refunding Bonds –
$4,725,000 issued for prefund Installment Sales
Agreement between the City and Milpitas Public
Financing Authority.
2019 Wastewater Revenue Bonds – $29,840,000
issued for certain improvements to City’s
wastewater system.
2019 Water Revenue Bonds – $17,210,000 issued
for certain improvements to the City’s water system.
2020 General Fund Lease Revenue Bonds –
$18,445,000 issued for Fire Station No. 2 and
energy improvement projects.

Financial Information
City of Milpitas 40

Appendix
City of Milpitas 1
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 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, used to finance essential services and day-to-day operations. 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, transient occupancy taxes (hotel/motel), franchise taxes, unrestricted revenues from other municipalities , fines and forfeitures. Expenditures are made for general government activities, public safety, most street work and other activities as described above.

Special Revenue Funds – Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. • Community Investment Program Fund – was established with monies the City received from the American Rescue Plan Act (ARPA), a federal stimulus program enacted to address the COVID-19 Pandemic economic impacts. ARPA funds were allocated to cities based on a modified Community Development Block Grant (CDBG) formula. The City received $16,736,815 in two tranches – one in 2021 and the other in 2022. The City focused ARPA funding across community services, economic vitality, infrastructure, public safety, and technology programs. In April 2024, remaining ARPA funds were allocated to the ARPA revenue replacement category, which allowed the City to reimburse itself for lost revenue due to the pandemic and use that revenue to support certain general government services. On April 16, 2024 City Council action reappropriated General Fund from general government services reimbursed by ARPA funds to community investment programs. • Public Art Fund – was established to account for construction or acquisition of public art to expand opportunities for the City of Milpitas residents 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. Eligible expenditures include, but are not limited to, the cost of public art, its installation, maintenance and repair of artwork funded by this fund.

Appendix
2 City of Milpitas
• Gas Tax Fund – was established to account for the construction and maintenance of the street system in Milpitas. Financing is provided by the City share of state gasoline taxes. • Lighting and Landscape Maintenance District Fund – was established to account for special taxes collected within the district used for servicing and maintaining the public landscaping and additional lighting. • Community Facility District Fund – was established to account for special taxes collected within the district to provide park maintenance and street landscape maintenance services, and public safety services. • Housing and Community Development Fund – was established to account for community development block grants and expenditures specific to housing.
• Law Enforcement Services Fund – was established to account for the proceeds from the sale of assets 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 federal Equitable Sharing program. Shared funds must be used only for specified law enforcement purposes and 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 future State required landfill deposits percentage reduction. The fund also accounts for special charges built into garbage rates specifically for community promotions and household hazar dous waste activities. These activities support the City’s ongoing efforts to meet State mandates to reduce waste. • Hetch-Hetchy Ground Lease Fund – was 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 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 the City long-term debt. The City has the following outstanding bonds: the 2020 General Fund Lease Revenue Bonds, 2019 Wastewater Revenue Bonds, 2017 Wastewater Revenue Refunding Bonds, and the 2019 Water Revenue 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. Funding is provided through State and federal grants.

Appendix
City of Milpitas 3
• General Government Fund – was established to account for the construction and maintenance of community improvements. Capital projects previously accounted for in the General Fund have been incorporated into this fund.
• Park Improvement Fund – was established to account for the construction and maintenance of City parks.

Funding 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 stormwater management systems, which protect the community from flooding during rain events . 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. • 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
Section 115 Pension Trust Fund – is an irrevocable, tax-exempt fund established under Section 115 of the Internal Revenue Code, which may fund annual actuarially determined pension contribution amounts, pay down unfunded pension liabilities with CalPERS, and/or reduce the length of pension cost amortization schedules with CalPERS.

Appendix
4 City of Milpitas
Successor Agency to the Milpitas Redevelopment Agency Private-Purpose Trust Fund – was established to account for the accumulation of resources used to make payments on the Recognized Obligation Payment Schedule and dispose of assets and property of the former Redevelopment Agency for the benefit of the taxing agencies.

Appendix
City of Milpitas 5
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 revenues are estimated
conservatively; as such, actual revenues received
may 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 of Santa Clara (County) Assessor in the 1975-76 County property tax assessment roll value is adjusted by a two percent inflation factor per year. When property changes hands or new construction occurs, it is reassessed for its current market value. Included in Property tax revenue is the Excess Educational Revenue Augmentation Fund (ERAF), which redirects local property tax revenues from cities, counties, and special districts to a state-controlled fund. The California Legislature created ERAF in 1991 to offset the state obligation to ensure local schools receive a minimum level of funding. When the amount contributed to ERAF is more than the minimum cost of funding local schools, excess funds are returned to the respective County, Cities, and Special Districts. Redevelopment Property Tax Trust Fund (RPTTF) is property tax revenue previously paid to each Redevelopment Agency (RDA), but is now required to be transferred to a new trust fund, RPTTF, as all RDAs were officially dissolved statewide on February 1, 2012 as a result of State of California ABx126 legislation passed in late June 2011.

Sales Taxes
Sales and Use Tax – Sales and use tax is imposed on retailers for the privilege of selling 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.

Appendix
6 City of Milpitas
Franchise Fees
Franchise Fees – Franchises fees are fees imposed on various utilities and organizations permitting them to use and operate respective 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 City fee structure includes 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 levied on gasoline purchases at the pump and allocated, on a share basis, to cities. The State Gas Tax is governed by Sections 2106, 2107, and 2107.5 of the State of California Streets and Highways Code. 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 building permits be obtained to ensure that structures being constructed in the City meet specific standards as identified in the Milpitas 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 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 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 may 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 brought to the County jail for booking or detention. In return, Judges may pass along the City 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

Appendix
City of Milpitas 7
maintain liquidity while achieving a fair rate of return – investment principles of safety, liquidity and yield – in that order.

Intergovernmental
Federal, State and County Contributions – Senior nutrition fees are one example of a County contribution to the City 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 a Supplemental Law Enforcement Services Grant, Local Law Enforcement Block Grant, and Justice Assistance Grant, and generally designated for vehicles, equipment and technology improvements. • SB90 – State of California SB90 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, because of any new State statute enacted after January 1, 1975 or any executive order implementing such State statute which mandates a new program or higher level of service in an existing program.

Charges for Services
Charges for Current Services – All City basic service charges are recorded at the department or division levels associated with specific governmental and enterprise activities. These service levels are General Government, Planning, Fire, Police, Recreation, Building and Public Works. This is a Governmental Accounting Standards Board (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 interpret 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 José Higuera Adobe and parks throughout the City.

Utility Charges – The City charges residents and businesses for water and sewer utility services , 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.

Appendix
8 City of Milpitas
• Treatment Plant Fees – Treatment Plant fees are payment for the purchase of wastewater treatment capacity rights. The fee is measured in gallons per day; 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 José /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 – The TASP impact fee is paid by 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. • Storm Drain Fees – Storm drainage fees are charges levied to manage costs associated with stormwater management systems, which protect the community from flooding during rain events. The fee is calculated based on runoff from impervious surfaces respective to the Milpitas Metro Specific Plan Area (MMSP), Gateway-Main Street Specific Plan Area (GSP), and the remaining Urban Service Area.

Reimbursements
• Abandoned Vehicle Abatement Service Authority (AVASA) – Beginning in 1996, the State of California, through the AVASA, 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 different revenue streams. 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 landfill reduction goal. The second fee is paid by City of Milpitas solid waste customers through user rates, and specifically earmarked for community education and Household Hazardous Waste programs.

Appendix
City of Milpitas 9
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. Generally, hours worked in excess of 40 hours per week.

Charged to CIPs – Salaries and wages for personnel assigned to Capital Improvement Project.

Allowances / Leaves
Allowances – Amounts paid to employees who are entitled to allowances such as car, telephone, uniform, special licenses, canine, motorcycle, SWAT (Special Weapons and Tactics Team), 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 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 Memorandum of Understanding (union) agreements.

Deferred Compensation – City of Milpitas contribution made to employees deferred compensation plan(s).

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 –To record year-end payroll adjustments in accordance to GAAP, i.e., Accrued Payroll which reflects salaries and wages earned by employees as of June 30 but not paid until July.

Vacancy Factor – Budgetary 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 providing services to the account charged.

Salary Reduction – Budgetary amount to account for reduced funding.

Appendix
10 City of Milpitas
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 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 share of funds 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 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, Video Display Terminal (VDT) glasses, etc.

Appendix
City of Milpitas 11
Services
Generally, amount paid for services rendered by organization or personnel not on the City of Milpitas payroll.

Although a product may or may not result from the transaction, the primary reason for the purchase is the service provided.

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 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. Copier charges are paid from this account.

Contractual Services-PJ’s Labor – Rendered by organizations or personnel under a contract or an agreement for City Private Jobs (PJ). Examples are carpentry, painting, and other labor for City Private Jobs.

Audit Fees – Professional services provided by Certified Public Accountants (CPA) firms for the purpose of auditing the City financial statements, such as 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 City of Milpitas payroll. This includes repair and maintenance of the City 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. (See Capitalized Leases).

Contributions to Non-City owned Capital Assets – Costs incurred in capital improvement projects where the City does not own the property. These costs are generally incurred by the City for the benefit of Milpitas residents and/or businesses where the property is owned by another government agency.

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. PLAN JPA is a joint powers insurance authority, consisting of 28 member cities in the San Francisco Bay Area, to which the City of Milpitas belongs.

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 includes costs incurred during legal proceedings.

Appendix
12 City of Milpitas
Elections
Elections – Includes expenditures for holding general primary and special elections.

Communications
Communications – Excepting the categories below, any services provided by persons or businesses to assist in transmitting and receiving messages or information.

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 wastewater treatment fees paid to City of San José -Maintenance and Operation.

Appendix
City of Milpitas 13
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 to exercise their 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 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.

Meals for Meetings – Expenses incurred to provide food in conducting department and/or business meetings.

Per Diem – Specified daily meals, incidental expenses, and/or lodging allowance in lieu of actual meal(s), and/or lodging expenses incurred while conducting business offsite. Per Diem rates vary according to business destination. out-of-the-office business follow the maximum federal per diem rates for Travel in Continental United States (CONUS).

Mileage Reimbursement and Parking – Payment to an employee for the use of their vehicle to conduct business offsite including parking costs. City of Milpitas mileage reimbursement rates follow the rate as set by the Internal Revenue Code, and reimbursed for the distance between home and destination or work and destination, whichever is less.

Tuition Reimbursement – Amount reimbursed by the City of Milpitas to any employee qualifying for tuition reimbursement, based upon the effective City policy.

Commissions & Boards
Conference Expenses – For Commissions and Boards use for conference-related expenses.

Non-Conference Expenses – For Commissions and Boards use 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 generally based on a percentage of the collected total amount.

Unanticipated Expenditures Reserve – Items that may become liabilities because 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 annual operating budget resolution, adjusted annually.

Loss on Sale – Records the loss incurred on sale of property or equipment.

Appendix
14 City of Milpitas
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.

Debt Service
Principal
Expenditures for periodic principal maturities of general obligation bonds or payments of principal on long- term debt.

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 long-term debt.

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 (CIP) expenditures by phase.

Appendix
City of Milpitas 15
Capital Outlay > $5,000
Capital Outlay > $5,000
Items to be recorded to the object and detail codes under this category have an acquisition cost of $5,000 or more per unit and 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 are included in the acquisition cost. Please see Fixed Assets Inventory Control and Capitalization Policy.

Land
Land – Purchase price plus legal and title fees, professional fees, surveying fees, site preparation cost and/or any cost incurred to place land in a condition for its intended use.

Land Improvements
Land Improvements – Permanent improvements, other than buildings, that add value or useful life to land.

Examples are parking lot, fence and gates, retaining walls, fountains, swimming pools, tennis courts, trails and paths.

Buildings and Improvements
Buildings and Improvements – Permanent structures purchased or otherwise acquired by the City. Includes the principal amount of capital lease payments resulting in the acquisition of the building. Payments to building authorities or similar agencies are not included in the acquisition cost. The category includes improvements to buildings owned by the City of Milpitas. Examples are additional installation of heating and ventilating systems, and installation of fire protection system.

Infrastructure
Infrastructure – Public domain capital assets include roads, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, landscape systems, storm systems and traffic systems.

Vehicles
Vehicles – Equipment used to transport persons or objects. Cost includes transportation charges, sales tax, commissioning costs and extended maintenance or warranty contracts if purchased concurrently with the equipment. Examples are police cars, fire trucks, and maintenance trucks. Accessories and installation costs can be included if purchased concurrently with, or within 30 days of, the respective purchase.

Capitalized Leases
Capitalized Leases – Principal lease payments for land, building, and/or equipment that will be acquired or subject for ownership within the term of the lease or at the end of the lease. Once owned, the respective item will be reclassified as land, building, or equipment. Lease contract usually has a clause indicating the option to buy.

Appendix
16 City of Milpitas
Machinery and Equipment
Machinery and Equipment – Any single machinery or equipment, except vehicles and computer hardware and software, with an acquisition cost of $5,000 or more per unit with a useful life of two or more years. Examples of machinery and equipment are printing press, lathe machines, drill presses and movable generators.

Computer Hardware – Example is a server.

Computer Software – Examples are the financial and human resource information systems being utilized by the City of Milpitas.

Furniture and Fixtures
Furniture and Fixtures – Office furniture and building fixtures.

Adjustments – Capital Improvement Program (CIP)
Adjustments – CIP – Account being used to record year-end CIP adjustments (in accordance with GAAP) to reclassify CIP capital expenditures to Fixed Assets.

Capital Outlay < $5,000
Capital Outlay < $5,000
In addition to the fixed asset categories above, the City of Milpitas performs a risk assessment on City assets to identify those at risk or vulnerable to loss. Items that have a unit acquisition cost of less than $5,000 but are vulnerable to loss are recorded to the following detail codes. Items that are not falling under the categories below are charged to supplies categories.

Office Furniture and Fixtures
Office Furniture and Fixtures – Examples are chair, table, dividers and workstations.

Machinery and Equipment
Machinery and Equipment – Examples are fax machines, firearms, weapons, and defibrillators.

Computer Hardware – Examples are desktop computers, laptops, printers, and scanners.

Computer Software – Examples are application and utility programs such as Microsoft Windows programs.

Electronic Equipment – Examples are cell phones, radios, personal digital assistant (PDA), digital cameras, and televisions.

Hydrants and Meters
Hydrants and Meters – Cost of fire hydrants and water meters.

Appendix
City of Milpitas 17
List of Funds
100 General Fund 300 Capital Projects Funds (continued) 100 General Fund 312 Traffic Impact Fees
103 1452 S. Main 313 Traffic Congestion Relief
104 Cable Rebate 314 Vehicle Registration Fee
105 Abandon Vehicle Abatement 315 Calaveras Widening Impact Fee 106 Short Term Disability 316 Montague Widening Impact Fee 107 Workers Compensation Fund 317 Milpitas Business Pk Impact Fe 109 Utility Rate Assistance 320 Park Improvement Fund
130 Private Jobs Developer Deposit 321 Park Improvement CIP 150 Redevelopment Administration 322 Midtown Park Fund 180 Community Investment Program Fund 330 General Government 199 Allocation Fund 331 General Government CIP
334 2020 Fire Station Bonds
200 Special Revenue Funds 340 Storm Drain Development CIP 211 Hetch Hetchy Ground Lease 341 Storm Drain Project Fund 213 Public Art Fund-Nonrestricted 342 Storm Drain General Fund 214 Community Planning Fund 350 Transit Area Impact Fee Fund 215 Community Benefit Fund 351 Transit Area CIP
216 Affordable Hsng Community Benefit 352 Piper Montague Infrastructure 217 Affordable Hsng Unrestricted Fund
218 Affordable Hsng Grant Fund 400 Enterprise Funds
221 Gas Tax Fund 400 Water M & O Fund
222 Measure B 401 Water CIP
225 SB1 Road Maintenance & Rehabilitation 402 Water Line Extension Fund 235 95-1 Light & Landscape Maint Dist. 403 2019 Water Bonds 236 98-1 Light & Landscape Maint Dist. 405 Water Infrastructure Replacement 237 2005 Community Facility Dist 406 Recycled Water Fund 238 2008 Community Facility Dist 450 Sewer M & O Fund
250 HCD Fund 451 Sewer CIP
251 HCD Loan 452 Treatment Plant Construction Fund
252 HCD PLHA 453 2017 Sewer Refunding Bonds
261 Supplemental Law Enforcement S 454 2019 Sewer Bonds 262 State Asset Seizure 455 Sewer Infrastructure Replacement 263 Federal Asset Seizure
267 Federal Grant Police 500 Internal Service Funds
268 State Grant Police 500 Equipment Replacement Fund
269 Fire Grant 505 Information Technology Replacement
280 Solid Waste Services 506 Permit Automation Fund
295 Housing Authority Fund 590 Pension Section 115 Trust

300 Capital Projects Funds 930 Successor Agency
310 Street Improvement Fund 930 Successor Agency
311 Street CIP

Appendix
18 City of Milpitas
List of Departments / Divisions / Functions
1 City Manager 6 Recreation and Community Services
10 City Council 45 Recreation and Community Services
100 City Council 161 Recreation Administration
11 City Manager 162 Senior Services
111 City Manager 164 Youth Program
114 City Clerk 167 Special Events
116 Economic Development 168 Marketing
118 Office of Housing 169 Performing Arts
170 General Classes
2 City Attorney 171 Aquatics
12 City Attorney 172 Sports & Fitness
120 City Attorney 175 Social Services

3 Finance 7 Police
30 Finance Administration 70 Police Administration
300 Finance Administration 700 Police Administration
31 Finance Operations 71 Technical Services
310 Finance Operations 711 Records
323 Fiscal Services 712 Personnel & Training
713 Communications
4 Public Works 72 Field Services
41 Engineering 721 Patrol Services
411 Engineering Administration 722 Traffic
412 Design & Construction 723 Crossing Guards
413 Land Development 73 Special Operations
415 Traffic Engineering 714 Community Relations
42 Public Works 724 Investigations
400 Public Works Administration
421 Street Maintenance 8 Fire
422 Utility Engineering 80 Fire Administration
423 Utility Maintenance 801 Fire Administration
424 Park Maintenance 81 Operations Division
425 Trees & Landscape Maintenance 812 Operations
426 Fleet Maintenance 82 Prevention Division
427 Facilities Maintenance 821 Fire Prevention Administration 428 Compliance 822 Fire Prevention
430 Solid Waste 83 Training, Emergency Medical Services, & Safety 801 Fire Administration
5 Planning 814 EMS Transport Services
51 Planning 84 Office of Emergency Services
512 Planning 840 Office of Emergency Management
513 Long Range Planning
541 Code Enforcement

Appendix
City of Milpitas 19
List of Departments / Divisions / Functions
11 Information Technology 9 Non-Departmental
14 Information Technology 91 Non-Departmental
112 Information Technology 910 Non-Departmental
92 Debt Service
12 Human Resources 920 Debt Service
15 Human Resources 93 Equipment to be Depreciated
115 Human Resources 930 Equipment to be Depreciated
94 Properties Management
13 Building Safety 941 1432 S. Main
53 Building Safety 942 1452 S. Main
531 Building Inspection 95 Other Functions
532 Plan Review 951 Capital Improvement Projects
533 Building Safety and Housing
Administration 99 Transfers
534 Permit Center 991 Transfers
992 Transfers (Intrafund)

Appendix
20 City of Milpitas
List of Revenues
300 Property Taxes 3150 Transient Occupancy Tax (continued) 3010 Secured & Unsecured 3168 Sonesta Silicon Valley
3011 Current- Secured Property Taxes 3169 Residence Inn by Marriott 3012 Current-Unsecured Property Tax 3170 Best Value Inn 3020 Property Taxes-Prior 3171 Towneplace
3021 Prior-Secured Property Taxes 3172 Stay Bridge Suites 3022 Prior-Unsecured Property Taxes 3173 Synergy Corporate Housing 3521 Homeowners Property Tax Relief 3174 Holiday Inn
3531 Property Tax, Supplemental 3175 Short Term Rentals (STRs) 3013 Property Tax-VLF 3176 Spring Hill Milpitas
3013 Property Tax-VLF 3177 Element Milpitas
3014 Property Tax-ERAF
3014 Property Tax-ERAF 313 Franchise Fees
3051 RPTTF Distribution 3131 Electric Franchise
3051 RPTTF Distribution 3131 Electric
3132 Gas Franchise
305 Sales Taxes 3132 Gas
3110 Sales and Use Tax 3137 Nitrogen Gas
3110 Sales and Use Tax 3133 Garbage Franchise
3111 Public Safety Sales and Use Tax 3133 Garbage – Commercial 3113 Sales Tax – Measure F 3134 Garbage – NonComm – Res 3135 Garbage – Multi Family
310 Transient Occupancy Tax 3136 Garbage – Debris Box 3150 Transient Occupancy Tax 3139 County-wide AB 939 Fee 3151 Holiday Inn & Suite 3138 Cable TV Franchise
3152 Embassy Suites 3138 Cable TV
3153 Crowne Plaza
3154 Sheraton 315 Other Taxes
3155 Best Western Brookside 3120 Other Taxes
3156 Larkspur Landing 3120 Real Estate Transfer Tax
3157 Park Inn 3140 Business License Tax
3158 Audited T O T 3511 Motor Vehicle in lieu
3160 Executive Inn 3549 Sec 2032 – RM&R
3161 Days Inn 3540 Gas Tax
3162 Extended Stay of America 3543 Sec 2103-Gas Tax
3163 Hampton Inn – Milpitas 3545 Sec 2105-Gas Tax
3164 Hilton Garden Inn 3547 Sec 2107-Gas Tax
3165 Homestead Village 3548 Sec 2107.5-Gas Tax
3166 Marriott Courtyard
3167 Milpitas Travelodge

Appendix
City of Milpitas 21
List of Revenues
320 Licenses, Permits & Fines 340 Use of Money & Property 3210 Building Permit & Inspection Fees 3430 Investment Interest 3210 Building Permits 3431 Pooled Interest (non-allocation) 3213 After Hours Inspection 3432 Cash with Fiscal Agents 3214 Re-Inspection 3433 Other Interest Income
3215 Dedicated Building Services 3434 Pooled Interest (allocation) 3216 Mobile Home Inspections 3435 Gain/Loss on Investments 3218 Building Investigation 3435 Gain/Loss on Sale of Investments 3219 Building Misc Fees & Permits 3437 Gain on Bond Refunding 3217 Building Plan Review Fees 3436 Year End Market Value Adj 3211 Plan Review Revisions 3436 Market Value Gain/Loss on Inv 3212 After Hours Plan Review 3770 Sale of Property, Plant and Equipment 3217 Plan Review 3770 Sale of Property, Plant and Equip. 3220 Fire Permit & Inspection Fees 3771 Fire Safe Program 3220 Haz. Materials Const Permit/In 3772 Police Abandon Properties 3221 Life Safety Const. Permit/Insp
3250 Fire Inspections 350 Intergovernmental Revenue
3251 Building Standards/Life Safety 3550 Federal Contributions 3252 Fire Expedited PC/Inspections 3551 Federal Contri-General Gov 3240 Fire Annual Permit & Inspection Fees 3553 Federal Contri-Building 3222 Haz. Materials Annual Permit/I 3554 Federal Contri-Public Works 3223 Fire Penalties 3555 Federal Contri-Engineering
3240 Life Safety Annual Permits/Ins 3556 Federal Contri-Recreation 3260 Other Licenses & Permits 3557 Federal Contributions-Police 3261 Animal Licenses 3558 Federal Contributions-Fire
3300 Fines & Forfeits 3559 Federal Contri – Planning
3301 Vehicle Code Fines 3560 State Contributions
3302 Other Court Fines 3561 State Contr-General Government 3304 Hazardous Materials Fines 3562 POST Grant
3305 Booking Fees 3563 State Contributions-Building
3306 NBO Violation Fees 3564 State Contri-Public Works 3307 Impound Fees 3565 State Contri-Engineering
3308 Animal Violations 3566 State Contribution-Recreation 3309 False Alarm Fee 3567 State Contribution-Police
3310 Fire Administrative Citation 3568 State Contribution-Fire 3311 Building Admin Citation 3569 State Contributions – Planning 3312 Planning Admin Citation 3570 County Contributions 3313 PW Municipal Code Fines 3571 County Con-General Government 3321 Urban Runoff Fines 3572 South Bay Water Recycling Prog

Appendix
22 City of Milpitas
List of Revenues
3570 County Contributions (continued) 3630 Fire Services 3573 County Contribution-Building 3631 PJ Overhead Charges – Fire 3574 County Contribution-PW 3632 PJ Labor Reimb – Fire 3575 County Cont-Engineering 3633 Fire Cost Recovery
3576 County Contribution-Recreation 3634 Fire Unwanted Alarms 3577 County Contribution-Police 3635 Fire Enforcement Penalties 3578 County Contribution-Fire 3636 Fire Enforcement-Training 3579 County Contributions-Planning 3637 Fire Service Charges 3580 Other Restricted Grants 3638 Fire Sales of Maps & Document 3581 Other Res Grants-General Govt. 3639 Fire Electronic Archive Chg 3582 SB90 Grant 3691 Fire GIS Mapping
3583 Other Res Grants-Building 3692 Fire Automation Fee 3584 Other Res Grant -PW 3693 Fire-Rent, Lease & Concess 3585 Other Res Grant-Engineering 3694 Ambulance Services 3586 Other Restri Grants-Recreation 3640 Police Services 3587 Other Restri Grants-Police 3641 Police Service Charges 3588 Other Restri Grants-Fire 3643 Fingerprints
3589 Other Restri Grants-Planning 3644 Sales of Maps and Document-Pol 3590 Misc. Unrestricted Intergovernmental 3645 Police Cost Recovery 3591 Mis Unrestricted Intergovernmental 3646 Rent, Lease and Concession-Pol 3647 DUI-Police Cost Recovery
360 Charges For Services 3648 PJ Overhead Charges – Police 3600 General Government 3649 PJ Labor Reimb – Police
3601 General Govern Service Charges 3650 Recreation Services 3602 Sale of Maps and Documents-GG 3651 Rent,Lease and Concession-Recr 3603 Rent, Lease & Concession-GG 3652 Recreation Fees 3604 Business License Procng Fee 3653 Senior Nutrition Fees 3608 PJ Legal Overhead Charges 3654 Contract Classes
3609 PJ Legal Reimbursement 3655 Sales of Merchandise Rec 3610 Engineering Services 3656 Recreation Transaction Fee 3611 PJ Overhead Charges-Eng 3657 Special Event Fees
3612 PJ Labor Reimbursement-Eng 3658 Sale of Food
3613 PJ Vendor Reimbursement-Eng 3660 Building Services 3615 Engineering Fees 3661 Sales of Documents-Building 3616 Engr Plan Check Fees 3662 Records Retention Fee-Building 3618 Sales of Maps and Doc-Engr 3663 Building Service Charges 3619 Rent,Lease & Concession-Engr 3664 Overhead Charges Reimbursement
3620 Public Works Services 3665 PJ Overhead Charges – Building 3621 Public Works Service Charges 3666 PJ Labor Reimb – Building 3622 Public Works Cost Recovery 3667 Building State Mndatd Stds Fee

Appendix
City of Milpitas 23
List of Revenues
3670 Utility Charges 3720 Special Assessments
3671 Water Meter Charge 3720 Special Assessments
3672 Water Consumption 3721 Special Assessments Pre-Pmt 3673 Irrigation Meter Charge 3730 Recycling
3674 Irrigation Consumption 3730 Recycling
3675 Fire Line Meter Charge 3740 Reimbursements
3676 Fire Line Consumption 3741 Repayment
3677 Recycle Meter Charge 3742 Principal
3678 Recycle Consumption 3743 Interest Income
3680 Planning Services 3744 Advance-Principal Repayment 3617 Planning Fees 3745 Advance-Interest Earnings
3681 PJ Overhead Charges – Planning 3746 HAZMAT Incidents 3682 PJ Labor Reimb – Planning 3750 Donations
3683 PJ Vendor Reimb – Planning 3750 Donations
3684 Sales of Maps and Doc-Planning 3790 Miscellaneous Other Revenue 3685 Housing & Neighborhood Svcs 3791 Cash Over/(Short) 3686 Planning Plan Check Fee 3792 Clearing, Various
3687 Animal Control Services Fee 3799 Miscellaneous Other Revenue

370 Miscellaneous Revenue 390 Other Financing Sources
3710 Development 3970 Bond Proceeds
3710 Development 3970 Bond Proceeds
3711 Storm Drain Connection Fees 3980 Other Financing Sources 3712 Park Development Fees 3980 Other Financing Sources 3713 Sewer Permit Fees 3981 Contributions-Proprietary Fund 3714 Treatment Plant Fees 3982 Capital Leases
3715 Connection Fees 3983 Pmnt to Refunded Bond Escrow A 3716 Fire Hydrant Fees 3985 Extraordinary Item
3717 Encroachment Permit Fees 3982 Capital Leases
3718 Impact Fees 3983 Pmnt to Refunded Bond Escrow A
3760 Developer Contribution 3985 Extraordinary Item
3761 Contribution-Equipment

Appendix
24 City of Milpitas
List of Expenditures
410 Personnel Services 420 Services and Supplies
4110 Wages 4200 Community Promotion, Grant/Loan
4111 Permanent 4201 Community Promotions
4112 Temporary 4202 Com Promotions-CC Allocated
4113 Overtime 4203 Com Prom-CC Unallocated
4114 Reimbursable Overtime 4204 Cultural Arts Grants
4119 Adjustments-Payroll 4205 Miscellaneous Grants
4143 Charged to CIPs 4206 Sports Grants
4120 Allowances/Leaves 4207 Housing Loans
4121 Allowances 4208 CDBG Grants
4122 Standby Pay MEA 4209 Miscellaneous Loans
4124 Leave Cashout 4210 Department Allocations
4125 Accrued Leave 4211 Equipment Replacement
Amortization
4126 Meal Stipend MEA 4212 Vehicle Lease Charges
4130 Benefits 4220 Supplies
4131 PERS 4221 Office Supplies
4132 Group Insurance 4223 Departmental Supplies
4133 Medicare-Employer's Contributi 4224 Maintenance Supplies 4135 Worker's Compensation 4225 Health & Safety Supplies 4136 Unemployment 4226 Senior Nutrition Food Supplies 4137 MOU Contractual Agreements 4230 Services
4138 Deferred Comp-Employer Contrib 4231 Advertising
4139 PARS 4232 Blueprinting
4140 Adjustments – Payroll 4237 Contractual Services
4141 Adjustments-Payroll 4238 Contractual Servs-PJ's Labor 4142 Vacancy Factor 4239 Audit Fees
4143 Charged to CIPs 4242 Rents & Leases
4146 Short Term Disability 4244 Senior Nutrition Non-Food 4151 Compensation Reduction 4240 Repair & Maintenance
4152 Employee Pay PERS Contribution 4241 Repair & Maintenance 4198 Overhead-PJ Contractual Labor 4242 Rents & Leases 4199 Overhead-Payroll 4250 Legal Services
4160 Retiree Benefits 4252 Retainers & Fees
4161 Retiree Medical Reserve 4253 Plan JPA Attorney's Fees 4162 Retiree Medical Payment 4254 Plan JPA Settlements 4163 Retiree Medical Reimbursement 4255 Litigation
4170 Pension Expense 4256 Liability IBNR Adjustment
4171 Pension/OPEB Expense 4280 Elections
4172 OPEB Expense 4280 Elections

Appendix
City of Milpitas 25
List of Expenditures
4410 Communications 4600 Insurance, Settlements & Miscellaneous (continued)
4411 Phone-Local 4650 Loss on Sale
4412 Computer Data Lines 4660 Other Miscellaneous and Correc 4415 Pagers 4630 Depreciation & Amortization
4416 Cellular Phones 4630 Depreciation & Amortization 4417 Fire Alarms
4418 Police Alarms 470 Debt Service
4420 Utilities 4700 Principal
4421 Utilities-Gas 4701 Retirement of Principal
4422 Utilities-Electric 4702 Principal – COP
4423 Utilities – Water 4703 Principal – Advance
4426 Utilities – Solid Waste 4710 Interest
4430 Utilities – Water Purchase 4711 Interest Expense 4424 SFWD, Wholesale Water Purch. 4712 Interest – COP 4425 SCVWD, Wholesale Water Purch. 4713 Interest – Advance 4427 Recycled Water Purchase 4720 Contractual Obligation 4440 Treatment Plant 4720 Contractual Obligation
4428 Treatment Plant, Capital 4721 Cost of Issuance
4429 Treatment Plant, M & O 4730 Premium-Bond Prepayment 4500 Training, Travel, & Memberships 4730 Premium-Bond Prepayment 4501 Memberships & Dues
4502 Professional Licensing 480 Capital Improvements
4503 Training and Registration 4800 Capital Improvements 4505 Lodging/Travel 4800 Capital Improvements
4506 Meals for Meetings
4507 Per Diem 485 Capital Outlay > $5,000
4508 Mileage Reimbursement/Parking 4810 Land
4509 Tuition Reimbursement 4811 Land
4520 Commissions & Boards 4820 Land Improvements
4521 Conference Expenses 4821 Land Improvements
4522 Non-Conference Expenses 4830 Buildings and Improvements 4600 Insurance, Settlements & Miscellaneous 4831 Buildings and Improvements 4602 Liability Insurance 4840 Infrastructure
4603 Settlements 4841 Infrastructure
4610 Uncollectible Accounts 4850 Vehicles
4611 Collection Fees 4851 Vehicles
4640 Unanticipated Expenditure Reserve

Appendix
26 City of Milpitas
List of Expenditures
4860 Capitalized Leases 490 Capital Outlay < $5,000
4864 Capitalized Leases 4910 Office Furniture & Fixtures 4865 Capital Lease Interest 4911 Office Furniture & Fixtures 4870 Machinery & Equipment 4920 Machinery, Tools & Equipment 4873 Machinery & Equipment 4921 Machinery, Tools & Equipment 4874 Computer Hardware 4922 Computer Hardware
4875 Computer Software 4923 Computer Software
4880 Furniture and Fixtures 4924 Electronic Equipment 4881 Furniture and Fixtures 4930 Hydrants & Meters
4890 Adjustments CIP 4931 Hydrants
4891 Adjustments-CIP-Addition 4932 Meters
4892 Adjustments-CIP-Deletion 4980 Adjustments-Capital Outlay 4893 Adjustments-CIP-Transfer 4981 95% Funding-Capital Outlay 4894 Adjustments-CIP-LTD

Appendix
City of Milpitas 27
Abbreviations and Acronyms
AB Assembly Bill
ABAG Association of Bay Area Governments
ADA Americans with Disabilities Act
ALS Advanced Life Support
AMR American Medical Response
AP Accounts Payable
AR Accounts Receivable
ARPA American Rescue Plan Act
AuthFTE Authorized Full-Time Equivalent
positions
AVASA Abandoned Vehicle Abatement Service
Authority
A / V Audio/Visual Equipment
BAAQM
D
Bay Area Air Quality Management
District
BART Bay Area Rapid Transit
CAD Computer Aided Dispatch
CSA City Service Area
Caltrans California Department of Transportation
CAPER Consolidated Annual Plan &
Performance Eval Rpt
CATV Cable Television
CCPI California Consumer Price Index
CDBG Community Development Block Grant
CEQA California Environmental Quality Act
CERBT California Employers' Retiree Benefit
Trust
CIP Capital Improvement Program
CIT Counselor in Training Program
CMAS California Multiple Awards Schedule
CMO City Manager’s Office
CO Certificate of Occupancy
COBRA Consolidated Omnibus Budget
Reconciliation Act
COMPST Computerized Statistics
COPs Certificates of Participation
COPS Community Oriented Policing Services
CPI Consumer Price Index
CPR Cardio-Pulmonary Resuscitation
CRS Community Rating System
CSA City Service Area
EMD Emergency Medical Dispatch
EMS Emergency Medical Service
EMT Emergency Medical Technician
EOC Emergency Operations Center
EPA Environmental Protection Agency
EPC Emergency Preparedness Commission
ERAF Educational Revenue Augmentation
Fund
FBI Federal Bureau of Investigation
FEHA Fair Employment and Housing Act
FEMA Federal Emergency Management
Admin
FICA Federal Insurance Contributions Act
FMLA Family Medical Leave Act
FPPC Fair Political Practices Commission
FTA Federal Transit Authority
FTE Full-Time Equivalent
FY Fiscal Year
GAAP Generally Accepted Accounting
Principles
GASB Governmental Accounting Standards
Board
GFOA Government Finance Officers
Association
GIS Geographic Information System
GPS Global Positioning System
Haz Mat Hazardous Materials
HCD Housing and Community Development
HMO Health Maintenance Organization
HR Human Resources
HUD U.S. Housing and Urban Development
HVAC Heating8 Ventilating and Air
Conditioning
I Interstate
ICMA Intern’l City/County Mgmt Association
IT Information Technology
IVR Integrated Voice Recognition
JPA Joint Power Authority

Appendix
28 City of Milpitas
LAFCO Local Agency Formation Commission
LED Light-Emitting Diode
LIUNA Laborers’ International Union of N.

America
LID Local Improvement District
LLEBG Local Law Enforcement Block Grant
LLMD Light & Landscape Maintenance
D it it M & O Maintenance and Operation
MEA Milpitas Employees Association
MLS Major League Soccer
MOU Memorandum of Understanding
MUSD Milpitas Unified School District
MVP Milpitas Volunteer Program
NAIOP Nat Assoc of Industrial & Office
Properties
MLS Major League Soccer
MOU Memorandum of Understanding
MUSD Milpitas Unified School District
MVP Milpitas Volunteer Program
NAIOP Nat Assoc of Industrial & Office
Properties
NBO Neighborhood Beautification Ordinance
NOVA North Valley Private Industry Council
O&M Operating and Maintenance
OES Office of Environmental Services
OPA Owner Participation Agreement
OPEB Other Post-Employment Benefits
OSHA Occupational Safety and Health Admin
PAL Police Athletic League
PAR Performance Appraisal Report
PC Planning Commission
PCR Police Community Relations
PERS Public Employees Retirement System
PLAN Pooled Liability Assurance Network
POST Peace Officers Standards and Training
PPO Preferred Provider Organization
PRV Pressure Reducing Valves
PUC Public Utility Commission
RAP Recreation Assistance Program
R & D Research and Development
RDA Redevelopment Agency
RFP Request for Proposal
RPTTF Redevelopment Property Tax Trust
Fund
RMS Records Management System
RWQCB Regional Water Quality Control Board
SB Senate Bill
SBDC Small Business Development Center
SBWRP South Bay Water Recycling Program
SAFE Strategic Actions For Emergencies
SCVWD Santa Clara Valley Water District
SEMS Standardized Emergency Management
SERAF Supplmntl Educ. Rev. Augmentation
Fund
SFPUC San Francisco Public Utilities
Commission
SLETS Sheriff’s Law Enforcement Telecom
System
SOP Standard Operating Procedure
SV-ITS Silicon Valley Intelligent Transportation
SVU Silicon Valley Unwired
SWAT Special Weapons and Tactics
TABs Tax Allocation Bonds
TAG Technology Application Group
TIA Traffic Impact Analysis
TDM Transportation Demand Management
TOT Transient Occupancy Tax
UBC Uniform Building Code
UCR Uniform Crime Reports
UFC Uniform Fire Code
VLF Vehicle License Fee
VTA Santa Clara Valley Transportation
Authority
WMD Weapons of Mass Destruction
WPCP Water Pollution Control Plant
YBA Youth Basketball Association
YSB Youth Services Bureau
YTD Year to Date

Appendix
City of Milpitas 29
Glossary of Terms
Accomplishment – Programs and activities successfully completed in the prior fiscal year.

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

Agency Funds – One of four types of fiduciary funds. Agency funds are used to report resources held by the reporting government in a purely custodial capacity (assets equal liabilities).

Appropriation – An authorization made by the City Council that permits officials to incur obligations against and to make expenditures of resources. Appropriations are usually made for fixed amounts and are typically granted for a one-year period.

Appropriations Limit – Proposition 4 approved by the voters in 1980 limits the amount of money that cities may spend each year. This limit is set each year based on the amount that was appropriated in 1978-79 and adjusted each year for population growth and a cost-of-living factor.

Assessed Valuation – The value of real property and improvements, as determined by the County Assessor, against which the property tax levy is assessed.

Asset – Resources owned or held by a government that have a monetary value.

Audit – A comprehensive examination of the City’s accounts by an independent auditing firm to determine whether the City’s financial statements are fairly presented.

Balanced Budget – 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.

Bond – A financial obligation for which the issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.

Budget – A plan of financial operation embodying an estimate of proposed expenditures for a given period of time and the proposed means of financing them.

Budgetary Basis – This refers to the basis of accounting used to estimate financing sources and uses in the budget. This generally takes one of three forms: GAAP, cash, or modified accrual.

Budget Calendar – The schedule of key dates which government follows in preparation and adoption of the budget.

Budgetary Integration – The control or management of a government in accordance with the approved budget for the purpose of keeping expenditures within the limitations of the available appropriations and resources. A system of controls to ensure and demonstrate budgetary compliance with uncommitted balance of appropriations (avoid overspending or over committing budget) and unrealized revenues (monitor on an ongoing basis to determine whether spending reductions are needed to keep the budget in balance).

Building Permit Fee – Fee required for new construction or for any alteration or addition to a residence or commercial building. The fee is based on valuation. Electrical or plumbing/mechanical work also requires a similar permit with an itemized fee schedule.

Appendix
30 City of Milpitas
Business License Tax – A tax imposed upon businesses in the community. The fee is a flat rate plus a minimal charge per employee.

California Employers' Retiree Benefit Trust (CERBT) – A Section 115 trust fund dedicated to prefunding Other Post-Employment Benefits (OPEB) for all eligible California public agencies.

Capital Assets – Assets of significant value and having a useful life of several years (the term fixed assets is also used).

Capital Budget – A plan of proposed capital expenditures and the appropriations to finance them. The capital budget is usually enacted as part of the complete annual budget that includes both an operating component and a capital component. The capital budget should be based on a capital improvement program (CIP) and is typically the first year of a multi-year CIP.

Capital Improvement – Projects which purchase or construct capital assets. Typically, capital improvements include new street improvements, park development, the acquisition of land, major construction of public facilities, and major maintenance/repair projects such as street resurfacing or modifications to public facilities.

Capital Improvement Program – A comprehensive five-year plan of implementing proposed capital projects which identifies priorities as to need, cost, and method of financing during the next five years. The first year of the CIP is typically adopted as the current capital budget.

Capital Projects Fund – Fund type 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).

Capital Outlay – Expenditure for the acquisition of equipment for direct services with a useful life of two or more years and an acquisition cost of $5,000 or more per unit (i.e. police vehicles, riding mowers, etc.). Capital Outlay is budgeted in the operating budget.

Comprehensive Annual Financial Report – The official annual financial report for the City. A Comprehensive Annual Financial Report is compiled by a state, municipal or other governmental accounting staff and audited by an external American Institute of Certified Public Accountants (AICPA) certified accounting firm utilizing Governmental Accounting Standards Board (GASB) requirements. It is composed of three sections: Introductory, Financial and Statistical. It combines the financial information of fund accounting and Enterprise Authorities accounting.

Contractual Services – Services rendered to a government by private firms, individuals, or other governmental agencies. Examples include utilities, rent, maintenance agreements and professional consulting services.

Credit/Bond Ratings by S&P – City AAA; Water Utility AA+; Wastewater Utility AA+ Debt Service – Payment of interest and repayment of principal to holders of the City's debt instruments.

Defeasance – The legal release of a debtor from being the primary obligor under the debt, either by the courts or by the creditor.

Department – An organizational unit of government which is functionally unique in its delivery of services.

Deficit – An excess of expenditures over revenues (resources).

Discount – The difference between the cost of a security and its value at maturity when quoted at lower than face value.

Effectiveness – The degree to which an entity, program or procedure is successful at achieving its goals and objectives.

Appendix
City of Milpitas 31
Efficiency – The degree to which an entity, program or procedure is successful at achieving its goals and objectives with the least use of scarce resources. Efficiency necessarily presupposes effectiveness.

Encumbrances – Commitments against an approved budget for unperformed (executed) contracts for goods and services. They cease to be encumbrances when the obligations are paid or otherwise terminated.

Enterprise Fund – Used to account for specific services, i.e. water and sewer, which are funded directly by fees and charges to external users.

Equipment Charges – Charges or "rental fees" charged to user departments to defray the cost of maintaining the equipment used and to replace the equipment when it exceeds its useful life.

Expenditure – The payment of cash on the transfer of property or services for the purpose of acquiring an asset, service or settling a loss.

Expense – Charges incurred for operations, maintenance, interest or other charges.

Fiduciary Fund – The term is used when a governmental unit acts in a fiduciary capacity such as a trustee or agent. The government unit is responsible for handling the assets placed under its control.

Final Budget – The budget document adopted by resolution following the budget hearings in June of each year.

The document formally incorporates any Council changes to the preliminary budget, resulting from the budget hearings.

Fiscal Year – The financial year for the City of Milpitas is July 1 through June 30 of the subsequent year.

Fixed Assets – Assets of long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture or other equipment.

Franchise Fee – 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, and nitrogen gas franchise fee.

Full-Time Equivalent (FTE) – Staffing levels are measured in FTE to give a consistent comparison from year to year and refers to the equivalent of one person working full-time for one year or may consist of several part-time positions.

Function – A discrete entity such as an organizational unit or groupings of interrelated programs within a department or division whose appropriations for salaries, services and supplies, and capital outlay can easily be subjected to analysis in the budget process.

Fund – An independent fiscal and accounting entity used to record all financial transactions related to the specific purpose for which the fund was created.

Fund Balance – Also known as financial position, fund balance is the excess of current assets over current liabilities, and represents the cumulative effect of revenues and other financing sources over expenditures and other uses.

Gas Tax – Share of revenue derived from the State taxes on gasoline.

Generally Accepted Accounting Principles (GAAP) – The standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as Accounting Standards. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing, and in the preparat ion of financial statement.

General Fund – The main operating fund of the City.

Appendix
32 City of Milpitas
Government Accounting Standards Board (GASB) – A standard-setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.

Governmental Funds – Funds generally used to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital projects funds and permanent funds.

Hotel/Motel Tax – A transient occupancy (less than 30 days at a hotel or motel) tax imposed for general purposes.

The tax is currently 14% of receipts.

Infrastructure – The physical assets of a government (i.e. streets, water and sewer systems, public buildings and parks).

Interest – Income resulting from the prudent investment of idle cash. The types of investments are controlled by the City's Investment Policy in accordance with the California Government Code.

Internal Service Funds – Proprietary fund type that may be used to report any activity that provides goods or services to other funds, departments or agencies of the primary government and its component units or to other governments on a cost-reimbursement basis.

Legal Level of Budgetary Control – The lowest level at which a government’s management may not reallocate resources without special approval from the legislative body.

Level of Service – A description of the services provided, or activities performed, and the cost and personnel requirements.

Line Item – The description of an object of expenditure, i.e. salaries, supplies, contract services, etc.

Materiality – The magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstance, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement. The objective of accountability in governmental financial reporting requires materiality to be judged in both a quantitative and qualitative manner (involves such issues as legal and contractual compliance).

Modified Accrual Basis – A basis of accounting in which revenues are recognized when measurable and available and expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and accumulated unpaid vacation, sick pay and other employee benefit amounts, which are recognized as expenditures to the extent they have matured.

Motor Vehicle In Lieu – A share of the revenue derived from registration fees charged by the State.

Objective – Program or activity intended to be implemented in the ensuing fiscal year.

Operating Budget – A financial plan for the provision of direct services and support functions.

Overhead Charges – A charge made to a non-General Fund source, developer account, or the Redevelopment Agency to defray the direct and indirect overhead costs associated with an employee performing duties or providing services to the fund or account.

Park Development Fee – The fee paid by a developer or sub-developer for park or recreation purposes in lieu of the dedication of land.

Performance Indicators – Quantitative measures of accomplishments and objectives, sometimes known as workload/performance measures.

Appendix
City of Milpitas 33

Permanent Employee – A continuing position to be filled 12 months a year with a normal work schedule.

Permanent Fund – Permanent funds are required to be used to report resources that are legally restricted to the extent that only earnings (and not principal, thus making the fund a nonexpendable trust) may be used for purposes that support the reporting government's programs.

Personnel Services – Expenditures for salaries, wages and fringe benefits of a government’s employees.

Personnel Allotment – List of full-time and part-time employees required to support a division or function, listed by their classification or title.

Personnel Analysis – Changes to personnel allotment from the previous fiscal year. Reorganizations, reclassifications and reallocation of resources are highlighted in this section.

Prior-Year Encumbrances – Obligations from previous fiscal years in the form of purchase orders, contracts or salary commitments which are chargeable to an appropriation, and for which a part of the appropriation is reserved.

They cease to be an encumbrance when the obligations are paid or otherwise terminated.

Property Tax – A tax imposed on real property (land and permanently attached improvements) based upon the assessed value of the property. The tax rate may not exceed 1% of assessed value.

Proposed Budget – The budget document recommended by the City Manager that is approved as may be amended by the City Council during budget hearings. The hearings are held in May or June, and the approval of the Preliminary Budget gives spending authority effective each July 1st for the subsequent fiscal year.

Proprietary Funds – Funds that focus on the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds.

Recreation Fees – Charges for services provided to participants of Community and Recreation Services' classes, activities, and recreational sports.

Redevelopment – The planning, development, replanning, redesign, clearance, reconstruction, or rehabilitation of real property, and the provision of such residential, commercial, industrial, public, or other structures appropriate to the general welfare of the City.

Redevelopment Property Tax Trust Fund – residual distributions of property tax revenue from dissolved Redevelopment Agency. The Redevelopment Agency is dissolved on 1/31/2012 due to ABX126.

Rents and Concessions – Charges for group rentals of City facilities.

Reserves – A savings account maintained for restricted use, i.e. self-insurance programs, capital improvement projects, or for unrestricted use to protect the City from emergencies or unanticipated expenditures.

Revenue Analysis – Departmental revenue sources are described. Revenue increases, decreases and strategies are highlighted in this section.

Sales Tax – The City receives one percent of the County’s nine percent sales tax, and a ¼ cent Transaction & Use Tax (Measure F). Sales tax is one of the City’s major general fund revenue sources.

Section 115 Trust – A grantor trust established by a governmental unit to set aside funds for paying future employee benefits such as pensions and Other Post-Employment Benefits (OPEB).

Appendix
34 City of Milpitas
Supplies and Contractual Services – The category of line items that describe non-salary and non-capital outlay expenditures.

Special Revenue Fund – Used to account for revenue that is set aside for restricted use, e.g. gas tax receipts are set aside in such a fund to be used solely for street improvements.

Supplemental Appropriation – An additional appropriation made by the governing body after the budget year has started.

Taxes – Compulsory charges levied by a government for the purposes of financing services performed for the common benefit of the people. This term does not include specific charges made against particular persons or property for current or permanent benefit, such as special assessments.

Transfers In/Out – Amounts transferred from one fund to another to assist in financing the services for the recipient fund.

Unanticipated Expenditures Reserve – A specific line item appropriation from which to distribute additional funds to decision units for salary increases resulting from employee contract negotiations and to pay for emergencies or unanticipated expenditures that from time to time arise during the course of a fiscal year.

Unassigned Unrestricted Fund Balance – Available expendable financial resources in a governmental fund that are not the object of tentative management plans.

Working Capital – Working Capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital.

Workload/Performance Measures – Quantitative measures of services provided, or activities performed, by an organizational unit.

City of Milpitas 35

CITYORGANIZATIONALCHARTS
Milpitas Community
Mayor & City Council
Interim City ManagerDeanna J. Santana
Finance DirectorLuz Cofresí-Howe
Human Resources DirectorKelli Parmley
Assistant City ManagerMatt Cano
City Council & City Manager Support
Housing OfficialSarah Balcha(Acting)
Director of Economic Development & Strategic InitiativesAlex Andrade Recreation & Community Services DirectorRenée Lorentzen PlanningJay Lee
Building OfficialBill Tott
City ClerkSuzanne Guzzetta
Public Information OfficerCharmaine Angelo
Public Works DirectorChristian Di Renzo
Information Technology DirectorDaniel Nam
Fire ChiefJason Schoonover
Police ChiefJared Hernandez
City AttorneyChristopher Creech(Acting)City Commissions•Energy & Environmental Sustainability•Arts•Senior Advisory•Community Advisory•Science, Technology and Innovation•Economic Development & Trade•Veterans•Public Safety & Emergency Preparedness•Youth Advisory•Library & Education Advisory•Measure F Oversight Committee•Parks, Recreation & Cultural Resources•Planning

CITYORGANIZATIONALCHARTSDeanna J. SantanaInterim City Manager(1.0)Matt CanoAssistant City Manager(1.0)Special Project Associate((0.75)City Council & City Manager SupportVACANTSenior City Manager Analyst*(1.0)Office Specialist(1.0)VACANTStaff Assistant(0.25)Sarah BalchaHousing Official(1.0)See Following PageAlex AndradeDirector of Economic Development & Strategic Initiatives(1.0)See Following PageBill TottBuilding Official(1.0)See Following PageSuzanne GuzzettaCity Clerk(1.0)Deputy City Clerk(1.0)Office Assistant(1.0)Charmaine AngeloPublic Information Officer(1.0)Special Project Associate(1.0)Student Intern(0.5)City Manager NewMoveReclassTempDefundedFTEFY 2025-2636.0Permanent2.75TemporaryAdd-Delete Administrative Analyst II to Senior City Manager Analyst*

CITYORGANIZATIONALCHARTS
Matt CanoAssistant City Manager(1.0)
(Vacant)Housing Official(1.0)
Senior Administrative Analyst(1.0)
Administrative Analyst II(1.0)
Administrative Analyst II(1.0)
Bill TottBuilding Official(1.0)
Building Inspection Manager(1.0)
Senior Builder Inspector(3.0)
Building Inspector(5.0)
Building Inspector(1.0)
Plan Review Manager(1.0)
Building Permit Technician(3.0)
Office Assistant II(1.0)
Senior Plan Check Engineer(1.0)
Plan CheckEngineer(3.0)
Plan Checker(1.0)
Administrative Assistant II(1.0)
Alex AndradeDirector of Economic Development & Strategic Initiatives(1.0) Economic Development Coordinator(1.0)
Economic Development Specialist(1.0)
Economic Development Specialist(0.3)
City Manager
NewMoveReclassTempDefundedFTEFY 2025-2636.0Permanent2.25Temporary

CITYORGANIZATIONALCHARTSCity Attorney
NewMoveReclassTempDefunded
Christopher CreechCity Attorney(Acting)(1.0)
Assistant City Attorney(1.0)
Legal Assistant(1.0)
Law Clerk(0.5)FTEFY 2025-263.0Permanent.50Temporary

CITYORGANIZATIONALCHARTSChristian Di RenzoDirectorSenior Administrative Analyst(1.0)Office Specialist(1.0)Office Assistant(1.0)Senior Special Projects Associate(1.0)Senior Administrative Analyst(1.0)Administrative Analyst II(2.0)Administrative Assistant(1.0)Division Manager –Operations(1.0)Manager – Projects(1.0)Sr Lead – Street Maintenance(1.0)Equip Maintenance Worker III(1.0)Equip Maintenance Worker II(1.0)Maintenance Worker III(3.0)Maintenance Worker I/II(6.0)Sr Lead – Parks, Trees & Landscape(1.0)ParksMaintenance Worker III(1.0)Maintenance Worker I/II(2.0)Maintenance Assistant(2.0)Trees & LandscapeMaintenance Worker III(3.0)Maintenance Worker I/II(6.0)Maintenance Assistant(1.0)Seasonal Maintenance Workers(2.0) Sr Lead – Fleet(1.0)Maintenance Worker III(1.0)Maintenance Worker II(3.0)Sr Lead – Facilities(1.0)Equip Maintenance Worker III(2.0)Equip Maintenance Worker II(1.0)Maintenance Worker I/II(3.0)Maintenance Custodian III(2.0)Maintenance Custodian I/II(4.0) Deputy Director(1.0)(See Following Pages)City Engineer(1.0)(See Following Pages)Public Works NewMoveReclassTempDefundedFTEFY 2025-26117.0Permanent4.0Temporary

CITYORGANIZATIONALCHARTSChristian Di RenzoDirector(1.0)Deputy Director(1.0)Senior Administrative Analyst(1.0)Environmental Inspector(1.0)Administrative Analyst II(1.0)Staff Assistant/Student Intern(0.5)Sustainability Coordinator –Limited TermAdministrative Analyst II(1.0)Division Manager – Utilities(1.0)SCADA Instrumental Control Technician(1.0)Sr. Lead – Storm/Sewer(1.0)Equip Maintenance III(3.0)Equip Maintenance II(2.0)Maintenance Worker III(1.0)Maintenance Worker I/II(2.0) Maintenance Supervisor –Water(1.0)Water System Operator(3.0)Assistant Water System Operator(1.0)Maintenance Worker III(3.0)Maintenance Worker I/II(5.0) Environmental & Regulatory Compliance Specialist(1.0)Environmental Inspector(1.0)Administrative Analyst II(1.0)Public Works NewMoveReclassTempDefunded

CITYORGANIZATIONALCHARTSChristian Di RenzoDirector(1.0)City Engineer(1.0)Management Analyst (TASP)*(1.0)Division Manager : EngineeringLand Management & Traffic(1.0)Land DevelopmentPrincipal Civil Engineer(1.0)Associate Civil Engineer(2.0)Junior/Assistant Engineer(2.0)Engineering Aide(1.0)TrafficPrincipal Civil Engineer(1.0)Associate Civil Engineer(2.0)Division Manager : EngineeringUtility Engineering(1.0)Associate Engineer(1.0)Associate Civil Engineer(1.0)Assistant Engineer(1.0)Engineering Aide(1.0)Cross Connection Specialist(1.0)Student Intern(0.5) Division Manager : EngineeringDesign & Construction(1.0)Principal Civil Engineer(1.0)Associate Civil Engineer(2.0)Assistant Engineer(1.0)Junior/Assistant Engineer(3.0)Engineering Aide(1.0)Senior Inspector(1.0)Inspector(3.0)Public Works NewMoveReclassTempDefundedMoved to Finance*

CITYORGANIZATIONALCHARTSLuz Cofresí-HoweDirector(1.0)Administrative Analyst II1(1.0)Assistant Finance Director(1.0)Finance Manager –Fiscal Services(1.0)Accounting Technician(3.0)Senior Accountant(1.0)Water Meter Technician(2.0)Water Meter Technician(0.5)Senior Accounting Technician(1.0)Accounting Technician(1.0)Student Intern(0.5) Senior Project Associate**(0.75)Staff Assistant(0.5)Finance Manager –Accounting(1.0)Accounts PayableSenior Accountant(1.0)Accounting Technician(2.0)Student Intern(1.0)PayrollSenior Accountant(1.0)Payroll Specialist(2.0)General LedgerSenior Accountant(1.0)Accountant(2.0)Accounting Technician(1.0) Management Analyst –TASP*(1.0)Administrative Assistant(1.0)Budget Manager – Budget, Debt, Risk Mgt, Treasury(1.0)Financial Analyst(3.0)Purchasing Agent(1.0)Buyer(2.0)Senior Special Projects Associate(1.05)Finance NewMoveReclassTempDefundedTransfer from Office of the City Manager1Moved from Public Works*Reclassed to 0.75 FTE**FTEFY 2025-2632.75Permanent3.55Temporary

CITYORGANIZATIONALCHARTSJason SchoonoverFire Chief(1.0)Executive Assistant(1.0)Deputy Fire Chief –OperationsBattalion Chief – Shift AFire Captain(5.0)Fire Engineer(6.0)Firefighter(9.0)Battalion Chief – Shift BFire Captain(5.0)Fire Engineer(6.0)Firefighter(9.0)Battalion Chief – Shift CFire Captain(5.0)Fire Engineer(6.0)Firefighter(9.0)Battalion Chief – Training, Office of Emergency MgtEmergency Services Coordinator(1.0)Fire Captain –Administration(1.0)Battalion Chief – EMS & Safety (1.0)Deputy Fire Chief – Fire Prevention(1.0)Assistant Fire Marshall(1.0)Fire Protection Engineer(2.0)HazMat Inspector(2.0)Fire Prevention Inspector(3.0)Fire Prevention Inspector(1.0)Office Specialist(1.0)Intern(0.5) Senior Administration Analyst(1.0)Administration Analyst I/II(1.0)Fire NewMoveReclassTempDefundedFTEFY 2025-2681.0Permanent0.5Temporary

CITYORGANIZATIONALCHARTSKelli ParmleyDirector(1.0)Manager(1.0)Analyst(3.0)Technician(2.0)Technician – Limited Term(2.0)Assistant(1.0)Senior Special Project Associate(0.5) Human Resources
NewMoveReclassTempDefundedFTEFY 2025-268.0Permanent2.5Temporary

CITYORGANIZATIONALCHARTSDaniel NamDirector(1.0)Business Systems Analyst/Developer(1.0)Deputy Director(1.0)Senior Administrative Analyst(1.0)Manager – Geo Info Systems(1.0)Geo Info Systems Technician(1.0)Intern(0.5)Technician(2.0)Office Specialist(1.0)Manager – Operations(1.0)Analyst(4.0)Information Technology NewMoveReclassTempDefundedFTEFY 2025-2614.0Permanent0.5Temporary

CITYORGANIZATIONALCHARTSJay LeeDirector(1.0)Administrative Assistant(1.0)Senior Code Enforcement Officer(2.0)Code Enforcement Officer(1.0)Senior Planner(2.0)Principal Planner(1.0)Associate Planner(2.0)Junior/Assistant Planner(1.0)Planning Technician(1.0) Special Projects Associate(2.0)Planning
NewMoveReclassTempDefundedFTEFY 2025-2614.0Permanent0.5Temporary

CITYORGANIZATIONALCHARTSJared HernandezChief of Police(1.0)Executive Assistant(1.0)Assistant Chief of Police(1.0)Police LieutenantProfessional Standards Unit(1.0)Personnel Sergeant(1.0)Training Sergeant(1.0)Division CaptainTechnical Services(1.0)Support Services Manager(1.0)Police Evidence Technician(3.0)Communications Dispatch Supervisor(3.0)Communications Dispatcher(12.0)Dispatcher(0.5)Police Clerk SupervisorRecords(1.0)Police Clerk(6.0)Office Specialist(1.0) Division CaptainSpecial Operations(1.0)LieutenantInvestigations(1.0)SergeantTraffic(1.0)Police OfficerMotorcycle(5.0)SergeantCriminal Investigations Bureau(1.0)Police Officer(4.0)SergeantSpecial Investigations Bureau(1.0)Police Officer(4.0)Crime Analyst(1.0) SergeantPCR(1.0)Police OfficerSRO(2.0)Division CaptainField Services(1.0)SergeantCrime Reduction Team/Task Force(1.0)Community Services Officer(4.0)LieutenantPatrol Services(2.0)Sergeant(6.0)Police Officer(55.0)Police Officer(1.0)Police Management Analyst(1.0)Intern(1.5)Police NewMoveReclassTempDefundedFTEFY 2025-26127.0Permanent2.0Temporary

CITYORGANIZATIONALCHARTSRenée LorentzenDirector(1.0)Recreation SupervisorSenior Center(1.0)Senior Programs Coordinator1(1.0)Social Services Coordinator1(1.0)Public Services Assistant II(1.0)Recreation Services Assistant IIFood Server(1.0)Administrative AssistantSenior Nutrition Program(0.625)Administrative Assistant(1.0)Recreation SupervisorSports Center(1.0)Special Events Coordinator1(1.0)Staff Assistant(1.0)Public Services Assistant II(1.0)Recreation Services Assistant IIIFacilities(1.0)Administrative Assistant(3.5)Recreation Attendant(6.25)Aquatics & Fitness Coordinator1(1.0)Pool Manager(1.5)Assistant Pool Manager(1.5)Lifeguards(5.0)Fitness Instructor(1.0)Staff Assistant(2.25) Recreation SupervisorCommunity Center(1.0)Recreation Assistant IVContract Classes(1.0)Staff Assistant(0.75)Administrative Assistant(1.0)Youth & Teen Program Coordinator1(17.0)Youth Program Recreation Leader(17.0)Special Projects AssociateTeen Programs(0.75)Assistant Director(1.0)Senior Public Services Assistant(1.0)Marketing & Outreach Coordinator1(1.0)Recreation Services Assistant IIIEngagement(1.0)Special Projects Associate(0.5)Staff Assistant(0.5) Recreation & Community Services
NewMoveReclassTempDefundedFTEFY 2025-2618.0Permanent44.625TemporaryRepresents Working Title1

RESOLUTION NO. ____

A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS AND

THE HOUSING AUTHORITY OF THE CITY OF MILPITAS APPROVING THE FY 2025-26 OPERATING BUDGET FOR THE CITY OF MILPITAS AND THE

MILPITAS HOUSING AUTHORITY, THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025-26, FISCAL POLICIES, AND BUDGET GUIDELINES, AND AUTHORIZING

VARIOUS FINANCIAL ACTIONS BY THE CITY MANAGER, INCLUDING

APPROVING AND AUTHORIZING THE EXECUTION OF VARIOUS CONTRACTS AND PAYMENTS OVER $100,000
WHEREAS, the City Manager/Executive Director has submitted a FY 2025-26 Proposed Budget and Financial Plan; and
WHEREAS, on June 3, 2025, a public hearing on the Proposed Budget and Financial Plan was opened where all interested persons were heard; and
WHEREAS, the City Council and Milpitas Housing Authority (“Authority”) reviewed the City Manager’s FY 2025-26 Proposed Budget and Financial Plan; and
WHEREAS, the first year, or FY 2025-26, of the Capital Improvement Program (CIP) is a part of the 2025- 26 Proposed Budget and Financial Plan; and
WHEREAS, Article XIIIB, Section 1, of the Constitution of the State of California requires that total annual appropriations subject to limitation of the City of Milpitas shall not exceed the appropriations limit of the City for the prior year adjusted for changes in the cost of living and population except as otherwise provided, also referred to as the Gann Appropriations Limit; and
WHEREAS, this Article became effective July 1, 1980, as amended, which requires the City to establish its appropriations limit by resolution each year at a regularly scheduled meeting or a noticed special meeting, commencing after the beginning of each fiscal year; and WHEREAS, the appropriations base for 1978-79 had been determined and since adjusted by the changes in population, cost of living, and transfers of financial responsibility, establishing an appropriations limit for fiscal year 2025-26 of $149,704,437; and
WHEREAS, the calculations for the appropriations limit are included as part of the budget document materials being considered and approved by the City Council and Authority as part of this Resolution; and WHEREAS, documentation used in determining the appropriations limit has been made available to the public for a period of not less than fifteen (15) days prior to consideration of this Resolution by the City Council and Authority; and
WHEREAS, the budget document contains fiscal policies that the City Council and Authority have reviewed and approved, and which are updated from time to time, as follows: General Financial Goals, Operating Budget Policies, Revenue and Expenditure Policies, Utility Rates and Fees, Capital Budget Policies, Debt Policies, Reserve Policies, Investment Policies, and Accounting/Auditing and Financial Reporting Policies; and WHEREAS, the budget document contains budget guidelines that the City Council and Authority have reviewed and approved and which are updated from time to time, as follows: 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 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.

NOW, THEREFORE, the City Council of the City of Milpitas and the Milpitas Housing Authority hereby find, determine, and resolve as follows: