FY 2024 TO FY 2025 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund
Number Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
102 General Fund Community Services Child Care Services This action reappropriates funding from the Child Care Trust Fund to support the Child Care Mini Grant Program and Professional Development opportunities for local child care providers. The Mini Grant Program received fewer applications than anticipated in FY 2025, and planned Professional Development courses were delayed. This reappropriation allows the Community Services Department to continue delivering these programs without the need for additional funding requests from the Trust Fund.
$ 20,000
102 General Fund Community Services Bryant Street Revenue - Teen Services Program
This action reappropriates funds for teen services from revenue generated by the rental of the Bryant Street Garage. In 2001, the City Council voted to lease out a garage property located at 455 Bryant Street. Since this site was formerly the location of the Bryant Street Teen Center, a stipulation in the lease required that 75 percent of the rental revenues would be used to fund programs specifically for Palo Alto youth and teens. Over the years, staff has returned to the Policy and Services Committee and City Council for direction on community engagement and potential uses of these funds.
The unspent balance of $0.2 million is recommended to be reappropriated to ensure resources are available to continue providing quality teen services to the community and develop a long-term approach to maintain delivery of these services. As such, a portion of the reappropriated funds in FY 2026 will be used to furnish and create a dedicated teen space at the 445 Bryant Street space, further enhancing opportunities for youth engagement and connection.
$ 216,000
102 General Fund Human Resources Labor Negotiations
Reappropriation
This action reappropriates labor negotiations funding as a strategic measure to proactively address upcoming expenditures and other labor related projects and programs. This proactive financial adjustment will ensure the availability of resources to cover anticipated and unplanned legal expenses associated with the continuing counsel required for the enforcement of the negotiated contracts.
$ 100,000
102 General Fund Non-Departmental Management Development Funds This action reappropriates funding for management training and professional development. The Management Training Program provides $1,000 per eligible employee under the terms outlined in the labor agreements and compensation plans with the Management and Professional group and the Palo Alto Police Management Association. In alignment with the City's Positive Workplace initiative and to address the City's overall need for training and development the Human Resources' Career Advancement/Training Division established contracts to deliver Organizational Development, Leadership Training, and Coaching services across all city departments. This strategic partnership with the selected vendors will entail continued close collaboration with City leadership and the various departments.
$ 250,000
FY 2024 TO FY 2025 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund
Number Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
102 General Fund Non-Departmental Advancing Racial Equity This action reappropriates the remaining funds of the original $0.5 million appropriated for the advancement of racial equity and the associated workplan. The City is continuing efforts to educate and train staff, Council, and Boards and Commission members on Diversity, Equity, Inclusion, and Belonging (DEIB) topics.
$ 241,000
102 General Fund Planning and Development
Services
3225 El Camino Real - Deposit
Based Recovery Project
This cost-neutral action reappropriates the remainder of the budget related to the deposit based cost recovery project at 3225 El Camino Real.
This is a fully cost recoverable project that is tracked separately using deposit accounts. The funds do not comingle with other contract service budgets and funds are only accessible for this purpose. All costs will be reimbursed by the applicant.
$ 33,400 $ 33,400 102 General Fund Planning and Development
Services
Feasibility Study - Market,
Program, and Policy Analysis
This action reappropriates funding to support the Economic and Market Feasibility Study. The project was not under contract before the close of FY 2025 due to the City’s internal procurement timeline, which required a new purchase requisition to be issued in FY 2026. In addition to setting impact and in lieu fees that cover the City’s infrastructure costs to deliver services to new residents and businesses, the City also has an interest in ensuring that the fees set do not act as a deterrent to new development altogether.
As a result, a separate economic and market feasibility study is needed to ensure that development impact and in-lieu fees successfully support and sustain the City’s goals for growth. Based on the economic and market feasibility study’s findings, additional policy and program recommendations may be formed to provide the City and its development partners with alternative tools or pathways to meeting critical community infrastructure needs over time.
$ 175,000
102 General Fund Planning and Development
Services
Development Impact and In-Lieu
Fee Study
This action reappropriates funding to support the Development Impact and In-Lieu Fee Study. The project was not under contract before the close of FY 2025 due to the City’s internal procurement timeline, which required a new purchase requisition to be issued in FY 2026. Under Assembly Bill (AB) 602 (2021), a city’s development impact and in-lieu fees must be updated at least every eight years. The nexus study will create a legal basis for the fees the City will set and collect by comparing land use and population growth projects with an updated community infrastructure needs assessment. The fees must be set correctly to ensure that the monies collected from new land use development projects are sufficient to cover the costs of the additional community infrastructure needs they create.
This study will provide a comprehensive nexus analysis of all 13 city-wide development impact and in-lieu fees.
$ 275,000
FY 2024 TO FY 2025 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund
Number Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
102 General Fund Public Works Sustainability S/CAP Studies This action reappropriates $55,000 remaining from the $0.6 million allocated in the FY 2024 Adopted Budget to perform S/CAP studies. The funds will allow Energy and Environmental Economics (E3) to complete studies critical to the implementation of S/CAP that were started but not completed in FY 2024 and FY 2025 : 1) the S/CAP Funding Source Survey, 2) the Building Sector Study, 3) the EV Charger Strategic Plan, and 4) the S/CAP Funding Study. All four studies are on track to be completed in FY 2026.
$ 55,000
102 General Fund Public Works Foothills Fire Management Plan This action reappropriates funding for the Foothills Fire Management Plan which includes roadside vegetation management and clearing, fuels and fire danger assessment, and fire prevention and preparedness. Work was unable to be completed in FY 2025 due to the inability to use in-house traffic control unlike prior year and delays in the purchasing process. This will provide funding to partner with the Santa Clara County Fire Safe Council for this work as approved by the City Council on 8/8/25 (Staff Report 2507-4923).
$ 91,400
102 General Fund Public Works San Francisco Airport (SFO) Ground Based Augmentation System
(GBAS) and Airplane Noise
This action reappropriates funding to continue engagement with SFO's Ground Based Augmentation System (GBAS) project and other potential opportunities to decrease airplane noise impacts (formerly CHS11). This action reappropriates $75,000 that had been allocated in the FY 2024 Adopted Budget for an on-call professional services contract to support work tasks resulting from engagement initiated but not completed in FY 2024 and 2025 with SFO on the GBAS project and other potential actions to decrease airplane noise.
$ 75,000
33,400$ 1,531,800$
526 Wastewater Treatment
Fund
Public Works Biosolids Screw Conveyors Repair This action reappropriates funding for repairs to the large screw conveyors in solids building at the Regional Water Quality Control Plant (WQCP).
Work was unable to be completed in FY 2025 due to delays in the purchasing process and repairs are needed to ensure the ability for the WQCP to treat and process biosolids.
$ - $ 105,100 Total General Fund Reappropriation
FY 2024 TO FY 2025 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund
Number Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
524 Gas Fund Utilities Gas Cap and Trade Support for
Electrification Pilot Programs
This action reappropriates $1.4 million in Contract Services and General Expense within the Gas Cap and Trade Cost Center. This amount includes $746,000 in unencumbered spending authority from the Advanced Single Family Electrification Pilot Program approved by Council at its Tuesday, May 27, 2025 meeting as an amendment to the FY 2025 budget, and $654,000 related to the ongoing 1000-unit Advanced Heat Pump Water Heater Pilot Program. In October 2022, the Council approved a $5.9 million budget for a 1000-unit Advanced Heat Pump Water Heater Pilot Program.
This budget was supplemented by $846,000 in April 2024. About $3.45 million has been expended since program inception, leaving approximately $3.3 million in remaining program authority. Of this, $654,000 has not been encumbered. Six hundred and thirteen heat pump water heaters had been installed as of July 3, 2025.
$ - $ 1,400,000 - 1,505,100
248 SLES Fund Police National Opioid Settlement In April 2023, the City Council approved Staff Reports 2304-1253 and 2304- 1274 to accept proceeds from the National Opioid Settlement between Opioid distributors/manufacturers and subrecipients such as states, counties, and cities. As of now, the City has received $253,216 in settlement funds to be used for specific purposes defined and overseen by the State of California Department of Public Health. Of the amount received, $600 has been utilized in FY 2025. The Department is requesting the remaining unencumbered amount be reappropriated to FY 2026 for use in a treatment contract with Stanford University. The treatment contract aims to expand the clinical services offered at the Opportunity Center to include substance use treatment for residents with low or no income.
$ 253,215
248 SLES Fund Police Wellness Grant In March 2023, the City received $47,742 from the State of California Board of State and Community Corrections (BSCC) for the Officer Wellness and Mental Health Grant Program. This wellness grant provides funding for law enforcement agencies to improve officer wellness and expand mental health resources. The funds were not yet spent because the Department was researching and obtaining vendor quotes for wellness services. This action reappropriates the remaining funds to FY 2026 for training and department-wide comprehensive body scans used for early detection of illness and disease.
$ 46,500
- 299,715
682 Tech Fund Information Technology Infrastructure Maintenance This action reappropriates $181,800 to support the replacement and maintenance of core IT infrastructure that was unable to be completed in FY 2025. Planned expenditures include the replacement of network switches as well as associated maintenance and support services. $ - $ 181,800 Total Enterprise Fund Reappropriation
Total Special Revenue Fund Reappropriation
FY 2024 TO FY 2025 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund
Number Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
682 Tech Fund Planning and Development
Services
PDS Tech Fee This action reappropriates $286,000 in Planning and Development Services Tech Fee budget. As part of the Adopted Municipal Fee Schedule, some PDS fees include a surcharge to support ongoing technology projects.
These projects include ongoing technical support of the City's Geographic Information System (GIS) and the ESRI platform, developing a permit wizard to guide applications of permitting needs, completing the development of an in house version of BuildingEye, and digitizing and storing plans and records.
$ - $ 286,000 -$ 467,800$
33,400$ 3,804,415$
Total Internal Service Fund Reappropriation
Total All Funds Reappropriation