Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
Administrative
Services
Technical Adjust: Business Tax Revenue/Business Registry Administration Contract Funding This action increases expenses to support the business tax and registry program administration contract, as scheduled to be presented to the City Council in Staff Report 2401‐2481 on February 5, 2024, and recognizes sufficient Measure K revenue to offset this expense. This contract will provide administration, collection, and enforcement services for the City’s business tax and business registry certificate program. (Ongoing costs: $0) ‐ 41,000$ 41,000$
City Manager's
Office
FY 2024 Budget Council Priority: California Avenue Car Free Streets Project Management This action increases the appropriation for salaries and benefits to fund the equivalent of 0.60 Assistant to the City Manager provisional limited term position to support the oversight of the California Avenue car free street efforts. This work is currently being done through consultant services; however, as staff this resource will provide a more flexible means to engage on this multidisciplinary effort going forward with the City's consultant, Urban Field Studio, stakeholders, and City staff. (Ongoing costs: $170,000 FY 2025 only) ‐ ‐$ 85,000$
Community
Services
FY 2024 Budget Council Priority: Fleet Electrification
This action allows for a vehicle in the Community Services Department to be replaced by an all‐electric Ford F‐ 150. As part of the FY 2024 Budget Adoption, select priorities were identified to be revisited at Mid‐Year. This action reflects a recommended continued transition to electric vehicles to allocate an additional $1.3 million across various funds to allow for additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0) ‐ ‐$ 80,000$
Community
Services
Technical Adjust: Golf Course Green Fee Contract Services Alignment This action increases expenditures related to City Golf Course operations. Contract expenditures are increased by $51,000 to reflect amounts owed to the service provider, OB Sports, per the compensation terms of the agreement with the City. The calculated FY 2023 revenue share, or 20% of the difference between Gross Revenue and Target Revenue for that fiscal year is reflected in this true‐up adjustment. (Ongoing costs: $0) ‐ ‐$ 51,000$
Community
Services
Recommended Funding: Charges for Services Revenue/Children and Teen Studio Art Class Funding This action provides $50,000 in contract dollars for the Art Center's Kids and Teens Studio program offset by $50,000 in additional registration revenue. This increase will allow for increased demand for spring classes and summer camps, provide increases in hourly pay for contract instructors, and remain competitive in the marketplace. (Ongoing costs: $0)
‐ 50,000$ 50,000$
Community
Services
FY 2024 Budget Council Priority: Youth Mental Health Event Funding This action allows for a Youth Mental Health program to support and plan an event with community partners focused on youth mental health and empowerment. As part of the FY 2024 Budget Adoption, select priorities were identified to be revisited at Mid‐Year. The $0.2 million estimated for these services has been updated due to event dates shifting from FY24 to FY25, and recalculated costs to administer these events. Additional funding ($3,000) is recommended in the Office of Transportation to fund rides through PA Link for youth attending this and other vital locations to access programs and services conducive to enhancing mental health. (Ongoing costs: $100,000)
‐ ‐$ 30,000$
Community
Services
Recommended Funding: Development Impact Fee Conversion
This action increases funding for contractual services to facilitate the conversion of three existing Development Impact Fee Programs. Currently assessed on a per dwelling basis, these fees will be transitioned to a per building square foot basis, in compliance with California State Assembly Bill 602. Additional funding is recommend in the Planning and Development Services Department ($20,000) to fund half of the total contract cost as these fees are maintained jointly by the two departments. (Ongoing costs: $0) ‐ ‐$ 20,000$
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
65,000$ ‐$ ‐ Recommended Funding: Fire Equipment Maintenance and Training Supplies This action adds $65,000 in ongoing funding for first responder equipment maintenance and training supplies.
This funding addresses maintenance and repair costs for personal protective equipment (PPE), equipment tracking software, and supplied air respirator machines. Additionally, this action adds funding for training drill supplies due to an increase in costs such as lumber as well as an increase in training needs due to staff turnover. (Ongoing costs: $65,000)
Fire
Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
Non‐
Departmental
Technical Adjust: Projected Tax Revenue/Transfer to the Capital Improvement Fund This action recognizes adjustments to estimates for Sales Tax ($1.6 million increase), Utility Users Tax (UUT) ($1.2 million increase), Investment Earnings ($1.1 million increase), and Property Tax ($0.8 million increase), partially offset by Transient Occupancy Tax (TOT) ($1.3 million decrease) and Documentary Transfer Tax (DTT) ($0.1 million decrease) based on trends experienced in the first half of FY 2024. This adjustment would bring Property Tax revenue to $64.6 million, Sales Tax revenue to $37.7 million, TOT revenue to $25.5 million, UUT revenue to $19.7 million, DTT to $5.8 million, and Investment Earnings to $2.9 million. This action also decreases the transfer to the Capital Infrastructure Reserve by $0.3 million due to the reduced TOT revenue that Council designated to fund Capital Improvements. (Ongoing savings: $0) ‐ 3,289,000$ (300,000)$
Non‐
Departmental
Technical Adjust: Business Tax Revenue Alignment/Transfer to the Capital Improvement Fund This is a technical correction to consolidate the recognition and receipt of all Business Tax revenue in the City's General Fund; no new revenue is reflected in this action. Previously the budget reflected tax revenues in association to transportation capital investments in the Capital Improvement Fund ($0.8 million). This action also establishes a transfer to the Capital Improvement Fund to maintain the allocation of the funding in alignment with the Council's adopted Advisory Spending Resolution to fund transportation and grade separation projects. (Ongoing savings: $0)
‐ 750,000$ 750,000$
Non‐
Departmental
Technical Adjust: El Camino Real Ballpark/Lot 37 FY 2023 Rent Funding This action increases expenses to allow payment of the Fiscal Year 2023 rent due to Stanford for the El Camino Real Ballpark, also referred to as Lot 37. The FY 2023 rent was withheld by the City while a minor error on the rental invoice was resolved with Stanford. Agreement was reached in FY 2024 and the City is now ready to release the FY 2023 rent payment; however, the remaining funding in FY 2023 was inadvertently omitted from the reappropriation process to move funds into FY 2024. (Ongoing costs: $0) ‐ ‐$ 220,540$
Non‐
Departmental
Technical Adjust: Transfer to the Capital Improvement Fund This action transfers $1.7 million to the Infrastructure Reserve in the Capital Improvement Fund, as approved by the City Council on January 16, 2024 in the FY 2023 Annual Comprehensive Financial Report (ACFR) for BSR exceeding the 20% target level. (Ongoing costs: $0)
‐ ‐$ 1,700,000$
Non‐
Departmental
Technical Adjust: Transfer to the General Benefits Fund for Supplemental Pension Contributions This action transfers $1.7 million to the General Benefits Fund to increase the contribution to the City's Section 115 Pension Trust Fund, as approved by the Council on January 16, 2024 in the FY 2023 Annual Comprehensive Financial Report (ACFR) for BSR exceeding the 20% target level. (Ongoing costs: $0) ‐ ‐$ 1,700,000$
Non‐
Departmental
Technical Adjust: FY 2023 Year‐End Cleanup for the Equity Transfer This action adjusts the equity transfer from the gas and electric funds with an overall increase of $0.3 million to align with FY 2023 year‐end actuals. The gas equity transfer increases by $0.5 million to adjust the FY23 year‐end amount from $6.7 million to $7.2 million per the staff report on April 17, 2023 to Council (CMR 2303‐ 1219). This action also includes a decrease to the electric equity transfer by $0.2 million to adjust the FY23 year‐end amount from $14.5 million to $14.3 million based on a reduced PG&E Return on Equity estimate from 10.25% to 10.00%. (Ongoing savings: $0)
‐ 293,000$ ‐ $
Non‐
Departmental
Technical Adjust: Utility Transfer Settlement Funding (Green v. City of Palo Alto) This action appropriates $11.2 million from the Utility Transfer Legal Cost Reserve to the General Fund for the first set of refunds issued to class members as a result of the Green v. City of Palo Alto (Santa Clara Superior Court, Case No. 1‐16‐CV‐300760) settlement. The reserve will retain a balance of $6.3 million that will be appropriated based on future settlement payment needs. (Ongoing costs: $6.3M) ‐ ‐$ 11,153,960$
Non‐
Departmental
Technical Adjust: Reduce Utility Transfer Legal Cost Reserve This action reduces the Utility Transfer Legal Cost Reserve by $11.2 million to fund the first round of refunds issued to class members as a result of the Green v. City of Palo Alto (Santa Clara Superior Court, Case No. 1‐16‐CV‐300760) settlement. The reserve will retain a balance of $6.3 million that will be appropriated based on future settlement payment terms. (Ongoing savings: $6.3M) ‐ ‐$ (11,153,960)$
Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
Non‐
Departmental
Technical Adjust: Uncertainty Reserve
This action reduces the City's FY 2024 Uncertainty Reserve by $0.6 million from it's FY 2024 Adopted Budget level of $10.1 million. The Uncertainty Reserve was set aside as part of the FY 2024 process to proactively reserve funding for FY 2025 forecasted deficit between General Fund revenues and expenses as well as $1.0 million for FY 2024 Mid‐Year additional priority investments for: fleet electrification, sea level rise, youth mental health, eucalyptus tree removal, unhoused services, and regulating short term rentals. This Mid‐Year recommends investments in fleet electrification, youth mental health, a rental registry program, California Avenue car free streets and parklet prototypes. This leaves $9.5 million in unspent reserve funds. Of this $9.5 million, approximately $6.0 million will be necessary to provide one‐time funding for the FY 2025 forecasted deficit outlined in the City's 2025‐3034 Long Range Financial Forecast. (Ongoing savings: $9.5M) ‐ ‐$ (560,000)$
Office of
Transportation
Recommended Funding: Measure B for Safe Routes to School/Revenue from Other Agencies This action recognizes $0.2 million in grant revenue from the Valley Transportation Agency's (VTA) 2016 Measure B Bicycle and Pedestrian Education and Encouragement Funding and increases contract services by the same amount. Staff will use the grant funding to hire a consultant to manage its Safe Routes to School Program. Currently, the City utilizes multiple vendors for services such as bicycle safety classes and bicycle repair. Combining such functions within a single contract will simplify program administration and performance. (Ongoing costs: $0)
‐ 213,725$ 213,725$
Office of
Transportation
Recommended Funding: Palo Alto Transportation Management Authority (PATMA) This action increases the contract with PATMA by $42,000, half of the amount requested. The current annual budget is $200,000, but the true cost of annual services is $330,000. PATMA has been utilizing surplus funding received in prior years to cover costs exceeding the annual budget, but those surplus funds have now been spent, and $84,000 is needed to continue the current service level of an estimated 306 cars taken off the road.
PATMA will need to evaluate staff time and outreach at hotels, restaurants, and shops in the City. Additional ongoing cost increases for PATMA services will be considered during the FY 2025 budget development process. (Ongoing costs: $0)
‐ ‐$ 42,000$
Office of
Transportation
FY 2024 Budget Council Priority: Youth Mental Health Event Funding (PALink) This action funds rides through PA Link for youth attending a city‐hosted youth mental health event and other vital locations to access programs and services conducive to enhancing mental health. As part of the FY 2024 Budget Adoption, select priorities were identified to be revisited at Mid‐Year. Additional funding is recommended in the Community Services Department ($30,000) to host the event. (Ongoing costs: $6,000) ‐ ‐$ 3,000$
Planning and
Development
Recommended Funding: Development Impact Fee Conversion
This action increases funding for contractual services to facilitate the conversion of three existing Development Impact Fee Programs. Currently assessed on a per dwelling basis, these fees will be transitioned to a per building square foot basis, in compliance with California State Assembly Bill 602. Additional funding is recommend in the Community Services Department to fund half of the total contract cost as these fees are maintained jointly by the two departments. (Ongoing costs: $0) ‐ ‐$ 20,000$
Planning and
Development
Recommended Funding: Cost Allocation Fee Study Amendment This action increases funding for an amendment to the cost allocation fee study for Planning and Development services fees. Commenced in 2021, the study faced delays due to shifts in priorities induced by the pandemic.
Additional funding is needed to address escalated costs associated with these delays and to encompass the extended time needed to complete the scope of services. (Ongoing costs: $0) ‐ ‐$ 59,000$
Planning and
Development
FY 2024 Budget Council Priority: Parklet Prototypes
This action appropriates $84,000 for the estimated costs of development of up to three parklet prototype concepts. This uses one of the City's on‐call contracts with Urban Planning Partners, Inc. and will include long range planning, application processing, and environmental review services. (Ongoing costs: $0) ‐ ‐$ 84,000$
Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
Planning and
Development
FY 2024 Budget Council Priority: Rental Registry Program Administration and Implementation This action adds a 1.00 FTE Senior Planner position and $228,000 in contractual funding for software to establish the rental registry program as adopted and directed by the City Council on November 27, 2023.
These resources reflect first year expenditures after factoring vacancy savings, but the program is expected to be fully funded by collected fees starting in FY 2025. (Ongoing costs: $0)
1.00 ‐ $ 228,000$
Planning and
Development
Technical Adjust: Deposit‐Based Cost Recovery Amendment This action increases revenue and expenses accordingly to support the continuity of services for the deposit‐ based cost recovery program. The Planning and Development Services Department provides a service to expedite entitlement studies through the use and expertise of outside consultants for private development projects. These services are fully cost recoverable and paid for by the planning applicant who directly receives these services. (Ongoing costs: $0)
‐ 146,000$ 146,000$
Planning and
Development
Recommended Funding: Development Center and Planning Special Project Staffing This action deletes a 1.00 FTE Assistant Chief Building Official position and adds a 1.00 FTE Planning Division Manager position. The Assistant Chief Building Official was added in FY 2023, to focus on improving the permit process, establish interdepartmental workflows, and problem solve complex policy and operational issues as they arise. After recruitment challenges and a closer review of duties, it is recommended that this realignment of staffing be made to better align with the goals and needs of improving the Development center and planning operations. Ongoing this will have a net cost of approximately $78,000 as this includes funding reallocation between revenue backed fee activities and General Fund activities as well as increased costs for the Planning Division Manager position. In FY 2024, these costs will be absorbed within existing levels through vacancy savings. (Ongoing costs: $78,000)
‐ ‐$ ‐ $
Planning and
Development
FY 2024 Budget Process Priority Referal: Fleet Electrification This action allows for two Chevy Blazers in the Planning and Development Services Department used for Building Inspections to be purchased as electric vehicles instead of the gas powered vehicles previously approved as part of the FY 2024 Adopted Budget. This is part of an action that was deferred by Council during FY 2024 Budget Adoption to allocate $1.3 million across various funds to allow for additional FY 2024 vehicle purchases and replacements to be all‐electric. (Ongoing costs: $0) ‐ ‐$ 50,000$
Planning and
Development
Recommended Funding: Code Enforcement Supervisor Vehicle This action allocates $64,000 for a new electric Chevy Blazer for the Code Enforcement Supervisor position added as part of the FY 2024 Adopted Budget. The Department has attempted to use a shared vehicle; however, this position manages the City's more complex enforcement cases and builds relationships with the community and partner departments which supports a dedicated electric vehicle for daily off‐site duties. (Ongoing costs: $0)
‐ ‐$ 64,000$
Fund Balance Adjustment to Fund Balance FY 2023 Year End use of BSR This action reduces the current Budget Stabilization Reserve (BSR) FY 2024 projected level by $3.6 million in alignment with the actions recommended and approved by the City Council in the FY 2023 Year‐End Annual Comprehensive Financial Report (ACFR) and Year End Budget transactions approved by Council on January 16, 2024. This reflects allocation of funds above the Council goal of 20% of General Fund expenses based on FY 2023 year end actual financial activity. (Ongoing cost: $0) ‐ ‐$ (3,620,540)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance increases the Budget Stabilization Reserve (BSR) projected for June 30, 2024. This would bring the BSR to an estimate of $57.2 million, this is above the Council target of 20% by $3.3 million and staff expects to discuss use of these funds as part of the FY 2025 budget process in the coming months. These funds combined with any unspent Uncertainty Reserve funds are expected to be part of the financial planning for FY 2025 and the near term beyond that. ‐ ‐$ 3,561,000$
GENERAL FUND (102) SUBTOTAL 1.00 4,782,725$ 4,782,725$ Revenues
Department FTE Adjustment Adjustment
CAPITAL IMPROVEMENT FUNDS
GENERAL FUND CAPITAL IMPROVEMENT FUND (471)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2.
‐ (8,253,248)$ (7,556,567)$
Capital Technical Adjust: Transfer from the General Fund (FY 2023 Year‐End Savings) This action transfers $1.7 million from the General Fund to the Infrastructure Reserve in the Capital Improvement Fund, as approved by the City Council on January 16, 2024 in the FY 2023 Annual Comprehensive Financial Report (ACFR) for BSR exceeding the 20% target level. (Ongoing savings: $0)
‐ 1,700,000$ ‐ $
Capital Technical Adjust: Transfer from the General Fund (Business Tax Revenue) This action transfers Business Tax revenue recognized in the General Fund to rail grade separation capital projects (PL‐24000 and PL‐24001) in the Capital Improvement Fund in alignment with the Council's adopted Advisory Spending Resolution. (Ongoing savings: $0) ‐ 750,000$ ‐ $
Capital Technical Adjust: Business Tax Revenue Category Realignment This action removes Business Tax revenue that had been budgeted as such in rail grade separation capital projects (PL‐24000 and PL‐24001) in the Capital Improvement Fund. That revenue will instead be recognized in the General Fund and, in alignment with the Council's adopted Advisory Spending Resolution, allocated to the Capital Improvement Fund via transfers. (Ongoing costs: $0)
‐ (750,000)$ ‐ $
Capital Technical Adjust: Transfer from General Fund (TOT) This action reduces transfers from the General Fund to the Infrastructure Reserve in the Capital Improvement Fund in alignment with adjustments to estimates for Transient Occupancy Tax (TOT) revenue based on trends experienced in the first half of FY 2024. (Ongoing costs: $0)
‐ (300,000)$ ‐ $
Capital Technical Adjust: Transfer from Community Development Block Grant (CDBG) This action aligns the FY24 Budget with the FY23‐24 CDBG Annual Action Plan by recognizing a transfer from the CDBG Fund to the Capital Improvement Fund for the Sidewalk Repairs project (PO‐89003). (Ongoing costs: $0)
‐ 211,673$ 211,673$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ 703,319$
GENERAL FUND CAPITAL IMPROVEMENT FUND (471) SUBTOTAL ‐ (6,641,575)$ (6,641,575)$ CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
Revenues
Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
AIRPORT ENTERPRISE FUND (530)
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 36,112$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (36,112)$
AIRPORT ENTERPRISE FUND (530) SUBTOTAL ‐ ‐$ ‐ $ UTILITIES ADMINISTRATION FUND (521)
Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 121,124$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (121,124)$
UTILITIES ADMINISTRATION FUND (521) SUBTOTAL ‐ ‐$ ‐ $ ELECTRIC FUND (513 & 523)
Utilities FY 2024 Budget Council Priority: Fleet Electrification This action allows for two vehicles in the Utilities Department to be replaced by two all‐electric Ford Ranger Small Pickup Trucks. It is part of an action that was deferred by Council during FY 2024 Budget Adoption to allocate $1.3 million across the General, Electric, Gas, Wastewater Collection, and Water Funds to allow for additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0) ‐ ‐$ 160,000$
Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 748,983$
Utilities Technical Adjust: Net Sales Revenue/Electric Commodity Adjustments This one‐time action aligns the Electric commodity purchase and sales budget with a net increase of $25.0 million to the Electric Fund, reflecting the updated forecasts as of November 2023. The reduction of $11.2 million in expenses is attributed to lower power revenue requirements for Base Resource customers, reduced CVPIA Restoration Fund charges, and decreased market purchase costs due to significantly higher hydro output. The $13.8 million increase in revenue is due to surplus sales revenue and improved hydro conditions, enabling the sale of excess renewable energy credits. (Ongoing costs:
$0)
‐ 13,818,733$ (11,226,940)$
Utilities Technical Adjust: Year‐end Cleanup Equity Transfer to General Fund This action also includes a decrease to the electric equity transfer by $0.2 million to adjust the FY23 year‐end amount from $14.5 million to $14.3 million based on a reduced PG&E Return on Equity estimate from 10.25% to 10.00%. (Ongoing costs: $0)
‐ ‐$ (215,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ 24,351,690$
ELECTRIC FUND (513 & 523) SUBTOTAL ‐ 13,818,733$ 13,818,733$ FIBER OPTICS FUND (533)
Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 38,182$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (38,182)$
FIBER OPTICS FUND (533) SUBTOTAL ‐ ‐$ ‐ $ CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
Revenues
Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
GAS FUND (514 & 524)
Utilities FY 2024 Budget Council Priority: Fleet Electrification This action allows for a vehicle in the Utilities Department to be replaced by an all‐electric Ford F‐150. It is part of an action that was deferred by Council during FY 2024 Budget Adoption to allocate $1.3 million across the General, Electric, Gas, Wastewater Collection, and Water Funds to allow for additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0) ‐ ‐$ 80,000$
Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 284,498$
Utilities Technical Adjust: Water, Gas, Wastewater Operating Transfer Technical Clean Up This one‐time action corrects the transfers between the Gas and Water Funds from FY2018 to FY2022 for a shared recurring project, WS‐02014 WGW Utility GIS Data. In 2018, a change in fund transfer methodology to collect the Gas portion of the project changed for more visibility on the fund transfers, and the action to terminate the former method was overlooked. (Ongoing costs: $0) ‐ 728,920$ ‐ $
Utilities Technical Adjust: Year‐end Cleanup Equity Transfer to General Fund This mid‐year action increases the gas equity transfer by $0.5 million to adjust the FY23 year end amount from $6.7 million to $7.2 million per the staff report on April 17, 2023 to Council (CMR 2303‐ 1219). (Ongoing costs: $0)
‐ ‐$ 508,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (143,578)$
GAS FUND (514 & 524) SUBTOTAL ‐ 728,920$ 728,920$ REFUSE FUND (525)
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 90,253$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (90,253)$
REFUSE FUND (525) SUBTOTAL ‐ ‐$ ‐ $ STORMWATER MANGEMENT FUND (528)
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 85,132$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (85,132)$
STORMWATER MANGEMENT FUND (528) SUBTOTAL ‐ ‐$ ‐ $ Revenues
Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
WASTEWATER COLLECTION FUND (527)
Utilities FY 2024 Budget Council Priority: Fleet Electrification This action allows for one vehicle in the Utilities Department to be replaced by an all‐electric GMC 6yrd Dump Truck and another vehicle to be replaced by an all‐electric Ford F‐150 Truck. It is part of an action that was deferred by Council during FY24 Budget Adoption to allocate $1.3 million across the General, Electric, Gas, Wastewater Collection, and Water Funds to allow for additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0)
‐ ‐$ 530,000$
Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 142,032$
Utilities Technical Adjust: Water, Gas, Wastewater Operating Transfer Technical Clean Up This one‐time action corrects the transfers between the Wastewater Collection and Water Funds from FY2018 to FY2022 for a shared recurring project, WS‐02014 WGW Utility GIS Data. In 2018, a change in fund transfer methodology to collect the Gas portion of the project changed for more visibility on the fund transfers, and the action to terminate the former method was overlooked. (Ongoing costs: $0) 850,288$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ 178,256$
WASTEWATER COLLECTION FUND (527) SUBTOTAL ‐ 850,288$ 850,288$ WASTEWATER TREATMENT FUND (526)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2.
‐ (3,010,000)$ (2,578,200)$
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 423,325$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (855,125)$
WASTEWATER TREATMENT FUND (526) SUBTOTAL ‐ (3,010,000)$ (3,010,000)$ WATER FUND (522)
Utilities FY 2024 Budget Council Priority: Fleet Electrification This action allows for a vehicle in the Utilities Department to be replaced by an all‐electric GMC 6yrd Dump Truck. It is part of an action that was deferred by Council during FY24 Budget Adoption to allocate $1.3 million across the General, Electric, Gas, Wastewater Collection, and Water Funds to allow for additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0) ‐ ‐$ 450,000$
Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 255,461$
Utilities Water, Gas, Wastewater Operating Transfer Technical Clean Up This one‐time action corrects the fund transfers from FY2018 to FY2022 for a shared recurring project, WS‐02014 WGW Utility GIS Data, decreasing the Water Fund by $1,579,209; increasing $850,288 to the Wastewater Fund and $728,920 to the Gas Fund. (Ongoing costs: $0) ‐ ‐$ 1,579,209$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (2,284,670)$
WATER FUND (522) SUBTOTAL ‐$ ‐ $
Revenues
Department FTE Adjustment Adjustment
INTERNAL SERVICE FUNDS
GENERAL BENEFITS FUND (687)
Non‐
Departmental
Technical Adjust: Transfer from the General Fund for Supplemental Pension Contributions This net‐neutral action recognizes a transfer of $1.7 million from the General Fund to increase the contribution to the City's Section 115 Pension Trust Fund, as approved by the City Council in the FY 2023 Annual Comprehensive Financial Report (ACFR). A corresponding adjustment is made to recognize pension expense. This brings total contributions to $73.3 million through FY 2024 ($47.5 million from the General Fund). Staff will include proportional contributions from other funds as part of the FY 2024 year‐end or FY 2025 Proposed Budget process. (Ongoing costs: $0)
‐ 1,700,000$ 1,700,000$
Non‐
Departmental
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 2,776,676$
Non‐
Departmental
Technical Adjust: Supplemental Pension Contributions
This action increases contributions to the City's Section 115 Pension Trust Fund by $1.2 million. These savings represents amounts collected from departments that exceeded annual required payments in the respective fiscal year and remain unspent in the General Benefits Fund. (Ongoing costs: $0)
‐ ‐$ 1,200,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (3,976,676)$
GENERAL BENEFITS FUND (687) SUBTOTAL ‐ 1,700,000$ 1,700,000$ GENERAL LIABILITIES INSURANCE FUND (689)
Human
Resources
Technical Adjust: Umbrella Excess Liability Insurance Expense This action increases the estimate for umbrella excess liability insurance to align with higher than anticipated premium costs, from $4.2 million to $4.4 million. (Ongoing costs:
$0)
‐ ‐$ 196,000$
Human
Resources
Technical Adjust: Property Loss Insurance Expense
This action increases the estimate for property loss insurance to align with higher than anticipated premium costs, from $0.8 million to $0.9 million. (Ongoing costs: $0) ‐ ‐$ 159,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (355,000)$
GENERAL LIABILITIES INSURANCE FUND (689) SUBTOTAL ‐ ‐$ ‐ $ INFORMATION TECHNOLOGY FUND (682)
Information
Technology
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 368,589$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (368,589)$
INFORMATION TECHNOLOGY FUND (682) SUBTOTAL ‐ ‐$ ‐ $ CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
Revenues
Department FTE Adjustment Adjustment
INTERNAL SERVICE FUNDS
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
PRINT AND MAIL SERVICES FUND (683)
Administrative
Services
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 8,906$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (8,906)$
PRINT AND MAIL SERVICES FUND (683) SUBTOTAL ‐ ‐$ ‐ $ VEHICLE REPLACEMENT & MAINTENANCE FUND (681)
Public Works Fleet Electrification
This action, which was deferred by Council during FY24 Budget Adoption, allows for 9 additional FY 2024 vehicle replacements to be all‐electric: 3 Ford F‐150s, 2 GMC 6yrd Dump Trucks, 2 Ford Ranger Small Pickup Trucks, and 2 Chevy Blazers. The cost of $1.3 million is spread across 5 funds (General Fund, Electric Fund, Gas Fund, Wastewater Collection Fund, and Water Fund) in the Community Services, Planning and Development Services, and Utilities Departments, with $130,000 in the General Fund. (Ongoing costs: $0) ‐ 1,350,000$ 1,350,000$
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 114,486$
Planning and
Development
Recommended Funding: Code Enforcement Supervisor Vehicle This action allocates $64,000 for a new electric Chevy Blazer for the Code Enforcement Supervisor position added as part of the FY 2024 Adopted Budget. The Department has attempted to use a shared vehicle; however, this position manages the City's more complex enforcement cases and builds relationships with the community and partner departments which supports a dedicated electric vehicle for daily off‐site duties. (Ongoing costs: $0) ‐ 64,000$ 64,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (114,486)$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL ‐ 1,414,000$ 1,414,000$ WORKERS' COMPENSATION FUND (688)
Non‐
Departmental
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 11,246$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (11,246)$
WORKERS' COMPENSATION FUND (688) SUBTOTAL ‐$ ‐ $ Revenues
Department FTE Adjustment Adjustment
SPECIAL REVENUE FUNDS
PUBLIC ART FUND (207)
Community
Services
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 6,411$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (6,411)$
PUBLIC ART FUND (207) SUBTOTAL ‐ ‐$ ‐ $ GAS TAX FUND (231)
Public Works Technical Adjust: Gas Tax Revenues/Transfers to the Capital Improvement Fund for Streets Improvement Project (PE‐86070)
This action reduces Fund 231 Gas Tax revenue by $16,194, and reduces the transfer to the Capital Improvement Fund by $16,194 for the Streets Improvement project (PE‐86070). This is based on the State's updated January HUTA and SB1 gas tax revenue estimates. (Ongoing costs: $0) ‐ (16,194)$ (16,194)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ ‐ $
GAS TAX FUND (231) SUBTOTAL ‐ (16,194)$ (16,194)$ COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232)
Planning and
Development
Technical Adjust: Transfer to Capital Improvement Fund
This action aligns the FY24 Budget with the FY23‐24 CDBG Annual Action Plan by recognizing a transfer from CDBG to the Capital Improvement Fund for the Sidewalk Repairs project (PO‐89003). ‐ ‐$ 211,673$
Planning and
Development
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 660$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (212,333)$
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) SUBTOTAL ‐ ‐$ ‐ $ CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
Revenues
Department FTE Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
HOUSING IN‐LIEU/RESIDENTIAL (233)
Planning and
Development
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 990$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (990)$
HOUSING IN‐LIEU/RESIDENTIAL (233) SUBTOTAL ‐ ‐$ ‐ $ HOUSING IN‐LIEU/COMMERCIAL (234)
Planning and
Development
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 990$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (990)$
HOUSING IN‐LIEU/COMMERCIAL (234) SUBTOTAL ‐ ‐$ ‐ $ UNIVERSITY AVENUE FUND (236)
Office of
Transportation
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 1,976$
Administrative
Services
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 5,073$
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 14,955$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (22,004)$
UNIVERSITY AVENUE FUND (236) SUBTOTAL ‐ ‐$ ‐ $ Revenues
Department FTE Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
CALIFORNIA AVENUE FUND (237)
Office of
Transportation
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 1,976$
Administrative
Services
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 2,177$
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 1,750$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (5,903)$
CALIFORNIA AVENUE FUND (237) SUBTOTAL ‐ ‐$ ‐ $ RESIDENTIAL PARKING PERMIT FUND (239)
Office of
Transportation
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0) ‐ ‐$ 11,392$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐ ‐$ (11,392)$
RESIDENTIAL PARKING PERMIT FUND (239) SUBTOTAL ‐ ‐$ ‐ $ Project
Number Title Revenue Expense Comments
PF‐93009 Americans With Disabilities Act
Compliance
$ ‐
$ (332,551) This action is a technical correction to align FY 2024 budgets with FY 2023 actual financial
activity. There is no change to the project
schedule or scope.
FD‐21000 Automated External Defibrillator
Replacement
$ (38,000) $ ‐ This action removes all remaining funding because the project has been completed.
FD‐22000 Extrication Tool Replacement $ (20,845) $ (79,513) This action removes all remaining funding because the project has been completed.
PE‐18004 Fire Station 4 $ (5,200,000) $ ‐ This action removes revenue budgeted in FY 2024 because it was received in FY 2023 and
reserved in the fund balance.
PE‐11011 Highway 101 Pestrian/Bicycle Overpass $ ‐ $ (87,105) This action is a technical correction to align FY 2024 budgets with FY 2023 actual financial
activity. There is no change to the project
schedule or scope.
PE‐12011 Newell Rd/SFC Bridge Replacement $ (3,365,799) $ (3,365,799) This action is a technical correction to align FY 2024 budgets with FY 2023 actual financial
activity. There is no change to the project
schedule or scope.
PL‐17001 Railroad Grade Separation and Safety
Improvements
$ (935,333) $ (3,995,937) The expense action is a technical correction to align FY 2024 budgets with FY 2023 actual
financial activity, with no change to the project
schedule or scope; the revenue action
reallocates Measure B revenue to PL‐05030 and
PL‐12000 as approved by VTA.
PF‐23001 Roth Building Rehabilitation $ 387,590 $ 587,590 This action adds County grant revenue ($0.4 million) for work on the Roth Building's windows
and roof. Interest earnings on Transfer
Development Rights funding ($0.2 million)
reserved for this project is also appropriated.
PO‐11000 Sign Reflectivity Upgrade $ ‐ $ (110,000) This action is a technical correction to align FY 2024 budgets with FY 2023 actual financial
activity. There is no change to the project
schedule or scope.
PE‐86070 Street Maintenance $ (16,194) $ (16,194) This action aligns the FY 2024 budget with the State's updated January HUTA & SB1 Gas Tax
revenue estimates.
PL‐05030 Traffic Signal and Intelligent
Transportation Systems
$ 701,500 $ (157,058) The expense action is a technical correction to align FY 2024 budgets with FY 2023 actual
financial activity, with no change to the project
schedule or scope; the revenue action adds
Measure B revenue reallocated from PL‐17001
as approved by VTA.
PL‐12000 Transportation and Parking Improvements $ 233,833 $ ‐ This action adds Measure B revenue reallocated from PL‐17001 as approved by VTA.
Total $ (8,253,248) $ (7,556,567)
WQ‐19003 Advanced Water Purification Facility $ (500,000) $ ‐ This action is a technical correction to align FY 2024 budgets with FY 2023 actual financial
activity. There is no change to the project
schedule or scope.
WQ‐14002 Laboratory & Environmental Svcs Bldg $ (2,510,000) $ (2,578,200) This action is a technical correction to align FY 2024 budgets with FY 2023 actual financial
activity. There is no change to the project
schedule or scope.
Total $ (3,010,000) $ (2,578,200)
TOTAL CIP ADJUSTMENTS $ (11,263,248) $ (10,134,767) CITY OF PALO ALTO
WASTEWATER TREATMENT FUND
ATTACHMENT A, EXHIBIT 2
CAPITAL IMPROVEMENT FUND