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3 City Council
Supplemental Report
From: Lauren Lai, Administrative Services Director
Meeting Date: June 15, 2026
Item Number: 3
Report #:2606-6464
TITLE
PUBLIC HEARING: Adoption of an Ordinance Adopting the Operating and Capital Budgets, Revised Table of Organization, and Municipal Fee Schedule for Fiscal Year 2027; Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2027 - State Law/ City Charter; Accept the Bi-Annual Actuarial Valuation Report of Palo Alto's Retiree Healthcare and Other Post-Employment Benefits (OPEB) as of June 30, 2025 and Approve Annual Actuarially Determined Contribution for Fiscal Years 2027 and 2028; Authorize the City Manager or their Designee to Negotiate and Execute a Memorandum of Understanding and Funding Agreement (or Lease Agreement Amendment) with the Palo Alto Museum to Provide Cost Sharing for Repairs to the Basement and Waterproofing in the Roth Building and Improvements to Heritage Park
BACKGROUND
The Palo Alto Municipal Code requires the Planning and Transportation Commission to review the City’s capital improvement program, review each project for consistency with the City’s Comprehensive Plan, and submit an annual report to the City Council. The Council considers this report as part of budget adoption process.
The Finance Committee unanimously recommended adoption of the proposed Fiscal Year 2027 Operating and Capital Budgets at its May 19, 2026 meeting. At the time , the Planning and Transportation Commission (PTC) had not yet reviewed the new projects in the 2027-2031 Capital Improvement Program for each of the projects’ consistency with the City’s 2030 Comprehensive Plan. The PTC reviewed the 2027-2031 Capital Improvement Program at its May 27, 2026 meeting, and determined that the new projects are consistent with the Comprehensive Plan 2030 policies and programs. The letter attached to this supplemental report includes the PTC’s recommendation to forward this finding to the Finance Committee and City Council.
Item No. 3. Page 2 of 2
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3 ATTACHMENTS
Supplemental Report Attachment A - Planning and Transportation Commission 2027-2031 Capital Improvement Plan Consistency Letter to the City’s Comprehensive Plan APPROVED BY:
Lauren Lai, Administrative Services Director