Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
Administrative
Services
Technical Adjust: Business Tax Revenue/Business Tax Administration Contract This action allocates funding to administer the Business Tax program to cover additional costs associated with contractor fees for identifying and collecting from businesses subject to the tax. These fees, similar to a finder’s fee, are incurred as the contractor brings in additional business tax revenue through discovery, notifications, and delinquent account collections. Payments to the contractor are expected to total $0.2 million through the remainder of the year, generating an estimated $0.5 million in revenue during the same period. The additional $0.3 million will be set aside in the Reserve for Business Tax Revenue as described below to be used for Council approved programs related to public safety; affordable housing and homeless services; and transportation and grade separation projects. (Ongoing costs: $0)
- 487,000$ 185,000$
Administrative
Services
Technical Adjust: Purchasing Staffing for Utilities Capital Projects This action reclassifies a vacant 1.00 FTE Contracts Administrator position to a 1.00 FTE Senior Buyer position in the Utilities Department to support expanded purchasing needs for the electric grid modernization. Working closely with Utilities engineers, this position will help maintain efficient build-out timelines and support the project’s long-term success. This position will sit in the Administrative Services Purchasing Division, but it will work solely on Utilities related purchasing projects and programs. (Ongoing savings: $218,000) (1.00) -$ (71,574)$
Community
Services
Recommended Funding: Junior Museum and Zoo (JMZ) Staffing This action adds 1.00 FTE Program Assistant I to the Guest Services team of the Junior Museum and Zoo. This position will provide customer service, membership oversight, reservation booking, event coordination, and support admissions. During the Finance Committee review of the FY 2025 Budget, it was recommended that this position be brought back as part the FY 2025 Mid-Year Review in order to align with the business consultant's staffing recommendation of an additional 4.08 total FTE to support the JMZ. In FY 2025, the cost of this position is estimated to be $40,000, which will be completely offset by vacancy savings within the Community Services Department. (Ongoing costs: $125,000)
1.00 -$ -$
Community
Services
Recommended Funding: Golf Course Repairs
This action allocates funding for repairs at the Palo Alto Golf Course. This will allow for the repair of key infrastructure such as the storm and irrigation pump stations, along with the replacement of the recycled water meter at the irrigation pump station. This work is necessary to ensure operational resilience, preserve the course’s integrity, prevent service disruptions, and ensure the facility remains functional during inclement weather, while also enhancing the overall user experience. (Ongoing costs: $0) - -$ 105,000$
Fire Recommended Funding: Revenue from Stanford/Firefighter Academy This action adds one-time funding of $236,400 for new hire uniforms, personal protective equipment (PPE), academy fees, and background checks as the Department has hired 10 entry-level firefighters in FY 2025. These costs are not budgeted as part of the adopted budget and are typically funded as part of Mid-Year because the number of new hires may vary from year to year. This action also adds $10,000 in ongoing funding for the Department's annual health physical exams. Lastly, this action includes $81,400 in revenue reimbursed through the fire response services agreement with Stanford. (Ongoing costs: $8,100) - 81,400$ 246,400$
Fire Recommended Funding: Paramedic Supplies
This action adds $63,000 in funding for Emergency Medical Services (EMS) supplies such as laryngoscopes, intubation tubes, needles, and drugs needed to provide emergency medical treatment. This funding addresses vendor supply cost increases as well as EMS call volume increases. (Ongoing costs: $40,000) - -$ 63,000$
Fire Recommended Funding: Cross-Staff Fire Engine 64 on Overtime This action adds $315,000 in funding to cross-staff one additional overtime position per shift to put a fire engine in service starting March/April at Fire Station 4. This is a fast, near-term strategy that activates a reserve fire engine operating in the pre-existing cross-staffing model. The ongoing service model and related costs will be discussed as part of the FY 2026 Budget process. (Ongoing costs: $1.0 million) - -$ 315,000$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
Fire Technical Adjust: Salaries and Overtime Adjustment This net-neutral action transfers $1.5 million of Department vacancy savings from salary & benefits to overtime salaries. This adjustment, along with other related Mid-Year adjustments, will result in a total overtime budget of $5.2 million for the Fire Department in FY 2025. The Department has had 10 vacancies during the first six months of FY 2025; this action will transfer the vacancy savings to offset Fire Department overtime costs. (Ongoing costs: $0)
- -$ -$
Fire Technical Adjust: Revenue from Other Agencies/Overtime for Strike Teams and Fire Station 8 This net-neutral action recognizes $592,436 in reimbursement revenue for eight Strike Teams that the Department participated in through the California Fire Assistance Agreement. Additionally, this action recognizes $272,267 in reimbursement revenue from the County of Santa Clara, based on an agreement to cover the costs of staffing Fire Station 8 on alternate months during high fire season months on behalf of the City of Los Altos Hills. (Ongoing costs: $0)
- 864,703$ 864,703$
Fire Technical Adjust: Charges for Service Revenue/Fire and Life Safety Inspection Program This cost neutral action adjusts Fire and Life Safety Inspection Program revenue and expenses to reflect six months of activity in FY 2025. The program experienced hiring delays which impacted the ability to provide inspections. (Ongoing costs: $0)
- (397,500)$ (397,500)$
Fire Technical Adjust: Paramedic Transport Revenue
This action increases paramedic transport revenue by $600,000 to align estimates with current trends through the first half of FY 2025. In recent years, this revenue has exceeded budget due to an increase in Emergency Medical Service (EMS) calls. (Ongoing savings: $600,000) - 600,000$ -$
Non-
Departmental
Technical Adjust: Projected Tax Revenue/Transfer to the Capital Improvement Fund This action recognizes negative adjustments to estimates for Sales Tax ($3.9 million decrease) and Property Tax ($0.1 million decrease), partially offset by increases to Documentary Transfer Tax (DTT) ($1.4 million increase), Utility Users Tax (UUT) ($1.1 million increase), Transient Occupancy Tax (TOT) ($0.6 million increase), and Investment Earnings ($0.5 million increase) based on trends experienced in the first half of FY 2025. This adjustment would bring Property Tax revenue to $68.5 million, Sales Tax revenue to $35.7 million, TOT revenue to $28.4 million, UUT revenue to $21.0 million, DTT to $8.7 million, and Investment Earnings to $3.8 million.
This action also increases the transfer to the Capital Infrastructure Reserve by $0.2 million due to the increased TOT revenue that Council designated to fund Capital Improvements. (Ongoing costs: $1.0 million) - (429,000)$ 209,000$
Non-
Departmental
Technical Adjust: Transfer to the Capital Improvement Fund (FY 2024 Year-End Savings) This action transfers $3.0 million to the Infrastructure Reserve in the Capital Improvement Fund, as approved by the City Council on December 16, 2024 in the FY 2024 Annual Comprehensive Financial Report (ACFR) for BSR exceeding the 18.5% target level. This funding will offset cost increases for the New Public Safety Building project (PE-15001) as well as increase the fund balance in the Capital Improvement Fund for use in the development of the upcoming 2026-2030 five-year Capital Improvement Plan. (Ongoing costs: $0) - -$ 3,000,000$
Non-
Departmental
Technical Adjust: Increase Uncertainty Reserve (FY 2024 Year-End Savings) This action increases the Uncertainty Reserve by $5.9 million, bringing the Uncertainty Reserve to a total of $12.0 million for use in the development of the FY 2026 Budget. This action was approved by the City Council on December 16, 2024 in the FY 2024 Annual Comprehensive Financial Report (ACFR) for BSR exceeding the
18.5% target level. (Ongoing costs: $0)
- -$ 5,900,000$
Non-
Departmental
Technical Adjust: FY 2024 Year-End Cleanup for the Equity Transfer This action increases the equity transfer from the Electric Fund by $0.9 million, aligning it with FY 2024 year-end actuals and the updated PG&E Return on Equity of 10.28%. As a result, the total electric equity transfer is $16.0 million in FY 2025. (Ongoing savings: $0).
- 864,000$ -$
Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
Non-
Departmental
Technical Adjust: Grant Revenue/TRUST Grant Closeout
This action recognizes the City accepted a $2.0 million grant awarded by the Department of Health and Human Services Substance Abuse and Mental Health Services Administration (SAMHSA) for assistance related to North County TRUST (Trusted Response Urgent Support Team). The grant spending period ended at the end of calendar year 2024, and this adjustment reflects the actual expenditures and reimbursements for the $2.0 million grant, with a total of $1.74 million expended. This adjustment reduces the budget to align with the actual spending and revenue reimbursed to the City. (Ongoing costs: $0) - (261,246)$ (261,246)$
Non-
Departmental
Technical Adjust: Reduce Utility Transfer Legal Cost Reserve This action reduces the Utility Transfer Legal Cost Reserve by $3.1 million to fund the final settlement-related disbursement under the Green v. City of Palo Alto (Santa Clara Superior Court, Case No. 1-16-CV-300760) settlement. This action fully depletes the reserve. (Ongoing savings: $0) - -$ (3,100,000)$
Non-
Departmental
Technical Adjust: Utility Transfer Settlement Funding (Green v. City of Palo Alto) This action appropriates $3.1 million from the Utility Transfer Legal Cost Reserve to the General Fund to fulfill the remaining obligations under the Green v. City of Palo Alto (Santa Clara Superior Court, Case No. 1-16-CV-300760) settlement. With this appropriation, the reserve will be fully utilized. (Ongoing costs: $0) - -$ 3,100,000$
Office of
Transportation
Recommended Funding: Measure B Revenue/Safe Routes to School Bicycle and Pedestrian Safety Classes This action recognizes $0.1 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 continue consultant services to manage the Safe Routes to School Program Bicycle and Pedestrian Safety Classes. (Ongoing costs: $0) - 126,235$ 126,235$
Police Technical Adjust: Public Safety Analog Radio Contract This action adds $64,500 in funding for Public Safety Analog Radio System contract costs. The year one contract amount of $145,000 and ongoing annual amount of $125,000 was approved by the City Council on June 17, 2024 (Staff Report 2405-3086), the same day the FY 2025 Budget was adopted by the City Council. An adjustment to align the budget with the annual contract amount is recommended as part of the FY 2025 Mid- Year Review. (Ongoing costs: $44,500)
- -$ 64,500$
Police Recommended Funding: Crime Lab Services, Uniforms, and Equipment This action adds $25,000 in one-time funding for the Department to purchase uniforms and equipment for new hires. The Department budgets for an anticipated 10 new hires each year; however, in FY 2025, the Department has hired 16. This action allows the Department to purchase uniforms and equipment for the additional six new hires. This action also adds $19,000 for Crime Laboratory Services due to cost increases implemented by the Santa Clara County Crime Laboratory; these services are critical for the Department to process evidence. (Ongoing costs: $29,000)
- -$ 44,000$
Various Technical Adjust: Electric Sales to the City
This one-time technical correction updates the budget distribution for electric energy use across all City departments and funds to align with expected electricity usage in FY 2025 and correct for an error in the FY 2025 Adopted Budget. While this adjustment does not impact overall charges and revenue collected by the Electric Fund for electricity use across the City, the adjustment reallocates anticipated electricity charges among departments and funds to ensure the budget aligns with anticipated charges. (Ongoing costs: $0) - -$ 366,170$
Fund Balance Reserve: Business Tax Revenue
This action increases a Reserve for Business Tax Revenue in the General Fund in order to account for business tax funding collected but not allocated for specific programs relating to public safety; affordable housing and homeless services; and transportation and grade separation projects. This reserve ensures that business tax revenue is accounted separately from the Budget Stabilization Reserve to be used in the future for approved programs in the previously mentioned areas. (Ongoing costs: $0) - -$ 302,000$
Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
Fund Balance Adjustment to Fund Balance FY 2024 Year End use of BSR This action reduces the current Budget Stabilization Reserve (BSR) FY 2025 projected level by $8.9 million in alignment with the actions recommended and approved by the City Council in the FY 2024 Year-End Annual Comprehensive Financial Report (ACFR) and Year End Budget transactions approved by Council on December 16, 2024. This reflects allocation of funds above the Council goal of 18.5% of General Fund expenses based on FY 2024 year end actual financial activity.
- -$ (8,900,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance as a result of actions recommended in this report and decreases the Budget Stabilization Reserve (BSR) projected for June 30, 2025 to an estimated level of $54.0 million. This leaves the BSR at 18.4% of the adopted expenditure budget or $0.4 million below the Council target of 18.5%. - -$ (225,096)$
GENERAL FUND (102) SUBTOTAL - 1,935,592$ 1,935,592$ Revenues
Department FTE Adjustment Adjustment
CAPITAL IMPROVEMENT FUNDS
GENERAL FUND CAPITAL IMPROVEMENT FUND (471)
Capital Technical Adjust: Transfer from the General Fund (FY 2024 Year-End Savings) This action transfers $3.0 million from the General Fund to the Infrastructure Reserve in the Capital Improvement Fund, as approved by the City Council on December 16, 2024 in the FY 2024 Annual Comprehensive Financial Report (ACFR) for BSR exceeding the 18.5% target level. This funding will offset cost increases for the New Public Safety Building project (PE-15001) as well as increase the fund balance in the Capital Improvement Fund for use in the development of the upcoming 2026-2030 five-year Capital Improvement Plan. (Ongoing costs: $0)
- 3,000,000$ -$
Capital Technical Adjust: Investment Returns Revenue
This action decreases investment returns revenue in the Capital Improvement Fund to align with annual approved interest revenue in this fund of approximately $1.1 million. (Ongoing costs: $878,100) - (878,100)$ -$
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 2025. (Ongoing costs: $0) - 209,000$ -$
Capital Technical Adjust: Transfer from the Gas Tax Fund/Street Maintenance Project (PE-86070) This action reduces the transfer from the Gas Tax Fund by $68,070, and reduces the funding for the Streets Improvement project (PE-86070) by the same amount. This is based on the State's updated January HUTA and SB1 gas tax revenue estimates. (Ongoing costs: $0)
- (68,070)$ (68,070)$
Capital Technical Adjust: Transfer from General Government Facility Impact Fee Fund and Revenue Realignment from Rinconada Pool Family Changing Room Project (PE-24004) to New Public Safety Building Project (PE- 15001)
To comply with prescribed uses of impact fees, this action reallocates $121,165 of General Government Facility Impact Fee revenue from the Rinconada Pool Family Changing Room Project (PE-24004) to the New Public Safety Building Project (PE-15011) and also transfers the remaining $68,835 balance of the General Government Facility Impact Fee Fund to PE-15011, with a corresponding $190,000 appropriation increase in PE-15011. (Ongoing costs: $0)
- 68,835$ 190,000$
Capital Technical Adjust: Transfer from Parkland Dedication Fund/Rinconada Pool Family Changing Room Project (PE-24004)
To comply with prescribed uses of impact fees, this action transfers $121,165 from the Parkland Dedication Fund to the Rinconada Pool Family Changing Room Project (PE-24004) to offset a $121,165 reallocation of General Government Facility Impact Fee revenue from PE-24004 to the New Public Safety Building Project (PE-15011). (Ongoing costs: $0)
- 121,165$ -$
Capital Technical Adjust: Transfer from General Benefits Fund This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 134,300$ -$
Capital Recommended Funding: Revenue from Federal Government/Safe Routes to School Project (PL-00026) Consistent with Staff Report #2411-3763, approved by the City Council on December 16, 2024, this action increases appropriation and revenue by the same amount in PL-00026 to reflect the award of the Federal Highway Administration (FWHA) Safe Streets and Roads for All (SS4A) planning demonstration grant. The funding will be used for quick-build treatments to improve bikeways and crossings on East Meadow Drive and Fabian Way. (Ongoing costs: $0)
- 888,000$ 888,000$
Capital Recommended Funding: Measure B Local Streets and Roads Revenue/Traffic Signal and Intelligent Transportation Systems Project (PL-05030)
This action increases appropriation and revenue by the same amount in PL-05030 to reflect the Valley Transportation Agency's (VTA) approval of the City's annual Program of Projects (POP) for Measure B Local Streets and Roads (LSR) revenue. The funding will be used to upgrade the City's traffic signal network communications systems in support of traffic congestion relief. (Ongoing costs: $0)
- 500,000$ 500,000$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
Revenues
Department FTE Adjustment Adjustment
CAPITAL IMPROVEMENT FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
Capital Recommended Funding: Shift Funding from Churchill Avenue Enhanced Bikeway Project (PL-14000) to Bicycle and Pedestrian Transportation Plan Implementation Project (PL-04010) and Transportation Parking Improvements Project (PL-12000)
This cost-neutral action transfers $800,000 of appropriation remaining from lower-than-expected construction costs in PL-14000 to two projects: $555,000 to PL-04010 to support bicycle and pedestrian plan implementation, and $245,000 to PL-12000 to support street improvement work on California Avenue and El Camino Real. (Ongoing costs: $0)
- -$ -$
Capital Recommended Funding: Insurance Settlement Reimbursement Revenue/Art in Public Spaces Project (AC- 86017)
This cost neutral action recognizes the expense for refabrication of a sculpture in the Art in Public Spaces Project (AC-86017). This expense is offset by revenue received as claim reimbursement from the insurance settlement for the damaged sculpture. (Ongoing costs: $0) - 52,900$ 52,900$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 2,465,200$
GENERAL FUND CAPITAL IMPROVEMENT FUND (471) SUBTOTAL - 4,028,030$ 4,028,030$ Revenues
Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
AIRPORT FUND (530)
Utilities Technical Adjust: Transfer from General Benefits Fund This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 20,800$ -$
Utilities Technical Adjust: Electric Sales to the City
This one-time technical correction updates the budget distribution for electric energy use across all City departments and funds to align with expected electricity usage in FY 2025 and correct for an error in the FY 2025 Adopted Budget. While this adjustment does not impact overall charges and revenue collected by the Electric Fund for electricity use across the City, the adjustment reallocates anticipated electricity charges among departments and funds to ensure the budget aligns with anticipated charges. (Ongoing costs: $0) - -$ (13,610)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 34,410$
AIRPORT FUND (530) SUBTOTAL - 20,800$ 20,800$ ELECTRIC FUND (513 & 523)
Utilities Technical Adjust: Transfer from General Benefits Fund This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 524,229$ -$
Utilities Technical Adjust: FY 2024 Year-End Cleanup for the Equity Transfer This action increases the equity transfer to the General Fund by $0.9 million, aligning it with FY 2024 year- end actuals and the updated PG&E Return on Equity of 10.28%. As a result, the total electric equity transfer is $16.0 million. (Ongoing savings: $0).
- -$ 864,000$
Utilities Technical Adjust: Electric Sales to the City
This one-time technical correction updates the budget distribution for electric energy use across all City departments and funds to align with expected electricity usage in FY 2025 and correct for an error in the FY 2025 Adopted Budget. While this adjustment does not impact overall charges and revenue collected by the Electric Fund for electricity use across the City, the adjustment reallocates anticipated electricity charges among departments and funds to ensure the budget aligns with anticipated charges. (Ongoing costs: $0) - -$ (11,190)$
Utilities Technical Adjust: Purchasing Staffing for Utilities Capital Projects This action reclassifies a vacant 1.00 FTE Contracts Administrator position to a 1.00 FTE Senior Buyer position in the Utilities Department to support expanded purchasing needs for the electric grid modernization.
Working closely with Utilities engineers, this position will help maintain efficient build-out timelines and support the project’s long-term success. This position will sit in the Administrative Services Purchasing Division, but it will work solely on Utilities related purchasing projects and programs. (Ongoing costs:
$166,000)
1.00 -$ 53,835$
Utilities Technical Adjust: Revenue From the State TECH Clean Program/Advanced Heat Pump Water Heater Program
This one-time action recognizes $350,000 in rebate revenue received from the State of California's TECH Clean Program for the Advanced Heat Pump Water Heater (HPWH) program. These funds will fully offset rebate payments for the same amount to residential customers participating in the HPWH program. (Ongoing costs: $0)
- 350,000$ 350,000$
Utilities Technical Adjust: Occupational Safety and Health Administration (OSHA) Settlement This allocation addresses the final penalty assessed by the California OSHA Appeals Board, concluding a workplace safety appeal process. The penalty, totaling $68,175, resulted from citations related to electrical safety violations issued in 2020. Following review, some citations were vacated or reduced, but the remaining amount represents the City's final settlement obligation. (Ongoing costs: $0) - -$ 68,175$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ (450,591)$
ELECTRIC FUND (513 & 523) SUBTOTAL 1.00 874,229$ 874,229$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
Revenues
Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
FIBER OPTICS FUND (533)
Utilities Technical Adjust: Transfer from General Benefits Fund This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 46,695$ -$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 46,695$
FIBER OPTICS FUND (533) SUBTOTAL - 46,695$ 46,695$ GAS FUND (514 & 524)
Utilities Technical Adjust: Transfer from General Benefits Fund This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 196,688$ -$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 196,688$
GAS FUND (514 & 524) SUBTOTAL - 196,688$ 196,688$ REFUSE FUND (525)
Utilities Technical Adjust: Transfer from General Benefits Fund This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 50,100$ -$
Utilities Technical Adjust: Electric Sales to the City
This one-time technical correction updates the budget distribution for electric energy use across all City departments and funds to align with expected electricity usage in FY 2025 and correct for an error in the FY 2025 Adopted Budget. While this adjustment does not impact overall charges and revenue collected by the Electric Fund for electricity use across the City, the adjustment reallocates anticipated electricity charges among departments and funds to ensure the budget aligns with anticipated charges. (Ongoing costs: $0) - -$ (2,770)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 52,870$
REFUSE FUND (525) SUBTOTAL - 50,100$ 50,100$ STORMWATER MANGEMENT FUND (528)
Utilities Technical Adjust: Transfer from General Benefits Fund This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 48,800$ -$
Utilities Technical Adjust: Electric Sales to the City
This one-time technical correction updates the budget distribution for electric energy use across all City departments and funds to align with expected electricity usage in FY 2025 and correct for an error in the FY 2025 Adopted Budget. While this adjustment does not impact overall charges and revenue collected by the Electric Fund for electricity use across the City, the adjustment reallocates anticipated electricity charges among departments and funds to ensure the budget aligns with anticipated charges. (Ongoing costs: $0) - -$ (7,450)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 56,250$
STORMWATER MANGEMENT FUND (528) SUBTOTAL - 48,800$ 48,800$ Revenues
Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
WASTEWATER COLLECTION FUND (527)
Utilities Technical Adjust: Transfer from General Benefits Fund This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 101,568$ -$
Utilities Technical Adjust: Electric Sales to the City
This one-time technical correction updates the budget distribution for electric energy use across all City departments and funds to align with expected electricity usage in FY 2025 and correct for an error in the FY 2025 Adopted Budget. While this adjustment does not impact overall charges and revenue collected by the Electric Fund for electricity use across the City, the adjustment reallocates anticipated electricity charges among departments and funds to ensure the budget aligns with anticipated charges. (Ongoing costs: $0) - -$ (120)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 101,688$
WASTEWATER COLLECTION FUND (527) SUBTOTAL - 101,568$ 101,568$ WASTEWATER TREATMENT FUND (526)
Utilities Technical Adjust: Transfer from General Benefits Fund This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 243,800$ -$
Utilities Technical Adjust: Electric Sales to the City
This one-time technical correction updates the budget distribution for electric energy use across all City departments and funds to align with expected electricity usage in FY 2025 and correct for an error in the FY 2025 Adopted Budget. While this adjustment does not impact overall charges and revenue collected by the Electric Fund for electricity use across the City, the adjustment reallocates anticipated electricity charges among departments and funds to ensure the budget aligns with anticipated charges. (Ongoing costs: $0) - -$ (226,090)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 469,890$
WASTEWATER TREATMENT FUND (526) SUBTOTAL - 243,800$ 243,800$ WATER FUND (522)
Utilities Technical Adjust: Transfer from General Benefits Fund This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 172,920$ -$
Utilities Technical Adjust: Electric Sales to the City
This one-time technical correction updates the budget distribution for electric energy use across all City departments and funds to align with expected electricity usage in FY 2025 and correct for an error in the FY 2025 Adopted Budget. While this adjustment does not impact overall charges and revenue collected by the Electric Fund for electricity use across the City, the adjustment reallocates anticipated electricity charges among departments and funds to ensure the budget aligns with anticipated charges. (Ongoing costs: $0) - -$ (73,180)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 246,100$
WATER FUND (522) SUBTOTAL 172,920$ 172,920$
Revenues
Department FTE Adjustment Adjustment
INTERNAL SERVICE FUNDS
GENERAL BENEFITS FUND (687)
Human
Resources
Technical Adjust: Transfer from General Benefits Fund
This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - -$ 1,739,300$
Human
Resources
Technical Adjust: Implied Subsidy Adjustment
This adjustment increases funding for the implied subsidy in the General Benefits Fund by $254,500. The implied subsidy identifies and accounts for an agency paying the same blended premium for both active employees and retirees, even though the medical cost for active employees is lower than retirees. This is a technical correction to the action taken during the FY 2025 budget process and will result in an accurate offset of the implied subsidy transfer to the Retiree Health Benefit Fund. (Ongoing costs: $0) - -$ 254,500$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ (1,993,800)$
GENERAL BENEFITS FUND (687) SUBTOTAL - -$ -$ GENERAL LIABILITIES INSURANCE FUND (689)
Human
Resources
Technical Adjust: Property Loss Insurance Premium
This action increases the estimate for property loss insurance to align with higher than anticipated premium costs as well as increasing insurance coverage for new city facilities, the California Avenue Parking Garage and the Public Safety Building. (Ongoing costs: $400,000) - -$ 299,100$
Human
Resources
Recommended Funding: Litigation Reimbursement Revenue/Litigation Settlement Costs This cost neutral adjustment appropriates $2.5 million in litigation settlement costs, offset by $2.5 million in revenue to be reimbursed by the City's liability insurance. (Ongoing costs: $0) - 2,500,000$ 2,500,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ (299,100)$
GENERAL LIABILITIES INSURANCE FUND (689) SUBTOTAL - 2,500,000$ 2,500,000$ INFORMATION TECHNOLOGY FUND (682)
Information
Technology
Technical Adjust: Transfer from General Benefits Fund
This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 129,300$ -$
Information
Technology
Technical Adjust: Electric Sales to the City
This one-time technical correction updates the budget distribution for electric energy use across all City departments and funds to align with expected electricity usage in FY 2025 and correct for an error in the FY 2025 Adopted Budget. While this adjustment does not impact overall charges and revenue collected by the Electric Fund for electricity use across the City, the adjustment reallocates anticipated electricity charges among departments and funds to ensure the budget aligns with anticipated charges. (Ongoing costs: $0) - -$ (790)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 130,090$
INFORMATION TECHNOLOGY FUND (682) SUBTOTAL - 129,300$ 129,300$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
Revenues
Department FTE Adjustment Adjustment
INTERNAL SERVICE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
PRINT AND MAIL SERVICES FUND (683)
Administrative
Services
Technical Adjust: Transfer from General Benefits Fund
This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 3,000$ -$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 3,000$
PRINT AND MAIL SERVICES FUND (683) SUBTOTAL - 3,000$ 3,000$ VEHICLE REPLACEMENT & MAINTENANCE FUND (681)
Public Works Technical Adjust: Transfer from General Benefits Fund This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 40,300$ -$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 40,300$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL - 40,300$ 40,300$ Revenues
Department FTE Adjustment Adjustment
SPECIAL REVENUE FUNDS
CALIFORNIA AVENUE FUND (237)
Office of
Transportation
Technical Adjust: Electric Sales to the City
This one-time technical correction updates the budget distribution for electric energy use across all City departments and funds to align with expected electricity usage in FY 2025 and correct for an error in the FY 2025 Adopted Budget. While this adjustment does not impact overall charges and revenue collected by the Electric Fund for electricity use across the City, the adjustment reallocates anticipated electricity charges among departments and funds to ensure the budget aligns with anticipated charges. (Ongoing costs: $0) - -$ (9,750)$
Office of
Transportation
Technical Adjust: Transfer from General Benefits Fund
This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 3,500$ -$
Public Works Recommended Funding: Enhanced Cleaning Services Consistent with Staff Report #2412-3936, approved by the City Council on January 13, 2025, this action adds appropriation to support enhanced cleanliness efforts in the California Avenue downtown area, including $5,250 to increase the frequency of contracted pressure washing from six times per year to twelve times per year, and $26,000 for the staff overtime that is required for enhanced in-house cleaning services. An ongoing service model and related costs will be discussed as part of the FY 2026 Budget process. (Ongoing costs: $0) - -$ 31,250$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ (18,000)$
CALIFORNIA AVENUE FUND (237) SUBTOTAL - 3,500$ 3,500$ GAS TAX FUND (231)
Public Works Technical Adjust: Gas Tax Revenues/Transfer to the Capital Improvement Fund for Streets Improvement Project (PE-86070)
This action reduces Fund 231 Gas Tax revenue by $68,070, and reduces the transfer to the Capital Improvement Fund by the same amount 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: $0) - (68,070)$ (68,070)$
GAS TAX FUND (231) SUBTOTAL - (68,070)$ (68,070)$ GENERAL GOVERNMENT FACILICTY IMPACT FEE FUND (226)
Capital Technical Adjust: Transfer to the Capital Improvement Fund for New Public Safety Building Project (PE- 15001)
To comply with prescribed uses of impact fees, this action transfers the remaining $68,835 balance of the General Government Facility Impact Fee Fund to PE-15011. (Ongoing costs: $0) - -$ 68,835$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ (68,835)$
GENERAL GOVERNMENT FACILICTY IMPACT FEE FUND (226) SUBTOTAL - -$ -$ PARKLAND DEDICATION FEE FUND (209)
Capital Technical Adjust: Transfer to the Capital Improvement Fund for Rinconada Pool Family Changing Room Project (PE-24004)
To comply with prescribed uses of impact fees, this action transfers $121,165 from the Parkland Dedication Fund to the Rinconada Pool Family Changing Room Project (PE-24004) to offset a $121,165 reallocation of General Government Facility Impact Fee revenue from PE-24004 to the New Public Safety Building Project (PE-15011). (Ongoing costs: $0)
- -$ 121,165$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ (121,165)$
PARKLAND DEDICATION FEE FUND (209) SUBTOTAL - -$ -$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 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 2025 BUDGET Expenses
ATTACHMENT A, EXHIBIT 1
PUBLIC ART FUND (207)
Community
Services
Technical Adjust: Transfer from General Benefits Fund
This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 3,800$ -$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 3,800$
PUBLIC ART FUND (207) SUBTOTAL - 3,800$ 3,800$ RESIDENTIAL PARKING PERMIT FUND (239)
Office of
Transportation
Technical Adjust: Transfer from General Benefits Fund
This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 6,900$ -$
Office of
Transportation
Recommended Funding: Parking Permit Revenue/Parking Enforcement Services This action increases parking permit revenue estimates by $0.2 million to align with increased permit activity. The increased revenue will offset increased funding for parking enforcement services in residential parking permit areas around the City. (Ongoing Costs: $0) - 200,000$ 200,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ 6,900$
RESIDENTIAL PARKING PERMIT FUND (239) SUBTOTAL - 206,900$ 206,900$ UNIVERSITY AVENUE FUND (236)
Office of
Transportation
Technical Adjust: Electric Sales to the City
This one-time technical correction updates the budget distribution for electric energy use across all City departments and funds to align with expected electricity usage in FY 2025 and correct for an error in the FY 2025 Adopted Budget. While this adjustment does not impact overall charges and revenue collected by the Electric Fund for electricity use across the City, the adjustment reallocates anticipated electricity charges among departments and funds to ensure the budget aligns with anticipated charges. (Ongoing costs: $0) - -$ (21,210)$
Office of
Transportation
Technical Adjust: Transfer from General Benefits Fund
This action transfers $1.7 million from the General Benefits Fund (687) to non-General Fund funds. This is a partial refund of allocated charges paid from non-General Fund funds into the General Benefits Fund in prior years that has accumulated in fund balance and a proportional refund across the City in alignment with the General Fund refund of $2.0 million approved in the FY 2025 Adopted Budget. (Ongoing costs: $0) - 12,600$ -$
Public Works Recommended Funding: Enhanced Cleaning Services Consistent with Staff Report #2412-3936, approved by the City Council on January 13, 2025, this action adds appropriation to support enhanced cleanliness efforts in the University Avenue downtown area, including $15,000 to increase the frequency of contracted pressure washing from once a month to twice a month, and $234,000 for the staff overtime that is required for enhanced in-house cleaning services. An ongoing service model and related costs will be discussed as part of the FY 2026 Budget process. (Ongoing costs: $0) - -$ 249,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. - -$ (215,190)$
UNIVERSITY AVENUE FUND (236) SUBTOTAL - 12,600$ 12,600$ Project
Number Title Revenue Expense Comments
AC-86070 Art in Public Spaces $ 52,900 $ 52,900 This action adds appropriation for refabrication of a damaged sculpture to AC-86070, offset by
insurance settlement revenue in the same
amount.
PL-04010 Bicycle and Pedestrian Transportation
Plan Implementation
$ - $ 555,000 This action transfers appropriation remaining from lower-than-expected construction costs in
PL-14000 to PL-04010 to support bicycle and
pedestrian plan implementation.
PL-14000 Churchill Avenue Enhanced Bikeway $ - $ (800,000) This action is one of three transactions to transfer appropriation remaining from lower-
than-expected construction costs in PL-14000 to
PL-04010 to support bicycle and pedestrian plan
implementation, and to PL-12000 to support
street improvement work on California Avenue
and El Camino Real.
PE-15001 New Public Safety Building $ 190,000 $ 190,000 To comply with prescribed uses of impact fees, this action reallocates $121,165 of General
Government Facility Impact Fee revenue from PE-
24004 to PE-15001 and also transfers the
remaining $68,835 balance of the General
Government Facility Impact Fee Fund to PE-
15001, with a corresponding $190,000
appropriation increase in PE-15001.
PE-24004 Rinconada Pool Family Changing Room $ - $ - To comply with prescribed uses of impact fees, this action transfers $121,165 of General
Government Facilities Impact Fee Fund revenue
from PE-24004 to PE-15001 and replaces it with
a transfer from the Parks Dedication Fee Fund in
the same amount.
PL-00026 Safe Routes to School $ 888,000 $ 888,000 Consistent with Staff Report #2411-3763 (12/16/24), this action increases appropriation
and revenue by the same amount in PL-00026 to
reflect the award of the Federal Highway
Administration (FWHA) Safe Streets and Roads
for All (SS4A) planning demonstration grant. The
funding will be used for quick-build treatments
to improve bikeways and crossings on East
Meadow Drive and Fabian Way.
PE-86070 Streets Maintenance $ (68,070) $ (68,070) This action aligns the budget for PE-86070 with the State's updated January HUTA & SB1 Gas Tax
revenue estimates.
PL-05030 Traffic Signal and Intelligent
Transportation Systems
$ 500,000 $ 500,000 This action increases appropriation and revenue by the same amount in PL-05030 to reflect the
Valley Transportation Agency's (VTA) approval of
the City's annual Program of Projects (POP) for
Measure B Local Streets and Roads (LSR)
revenue. The funding will be used to upgrade the
City's traffic signal network communications
systems in support of traffic congestion relief.
PL-12000 Transportation Parking Improvements $ - $ 245,000 This action transfers appropriation remaining from lower-than-expected construction costs in
PL-14000 to PL-12000 to support street
improvement work on California Avenue and El
Camino Real.
Total $ 1,562,830 $ 1,562,830
TOTAL CIP ADJUSTMENTS $ 1,562,830 $ 1,562,830
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM ATTACHMENT A, EXHIBIT 2
CAPITAL IMPROVEMENT FUND