State of the City
Mayor Vicki Veenker
August 19, 2026
PaloAlto.gov
PaloAlto.govState of the City I August 19, 2026
ONE COMMUNITY
Palo Alto is best when we work together, play together, and stand together.
Palo Alto’s residents, government,
schools, Stanford, the business
sector, nonprofit organizations,
and more form One Community
when our shared values lead us to
pursue shared goals to create
vibrant, healthy shared
experiences where all belong and
thrive.
State of the City I August 19, 2026 PaloAlto.gov
ONE COMMUNITY
PaloAlto.gov
Celebrating community progress and
achievements through:
Advancing City Council Values
Implementing City Council Priorities
State of the City I August 19, 2026 PaloAlto.gov
ONE COMMUNITY
PaloAlto.govState of the City I August 19, 2026
COUNCIL VALUES
Enduring Council policy commitments
Vibrant Community
Fiscal Responsibility
Accountable Governance
Strategic Innovation
Equity and Shared Prosperity and Housing Leadership
Climate Leadership and Environmental Stewardship
Community Well-Being and Belonging
Cultivate a dynamic community by
fostering retail vibrancy, economic
development, engaging public spaces, and
a high quality of life for all.
State of the City I August 19, 2026 PaloAlto.gov
State of the City I August 19, 2026 PaloAlto.gov
In June, the City hosted the grand opening of
the Bryant Street Community Center
A downtown hub offering gathering spaces for
Recreation classes
Teen Center
Permanent dining room in downtown for
La Comida’s senior nutrition program
BRYANT STREET
COMMUNITY CENTER OPENS
The Cannery opened in May, a
testament to innovation and
partnership with The Sobrato
Organization, honoring Chinese
immigrant and entrepreneur Thomas
Foon Chew
The phased project advances housing,
economic development and vitality
through the historic preservation and
reuse of the building
State of the City I August 19, 2026 PaloAlto.gov
THE CANNERY OPENS
State of the City I August 19, 2026 PaloAlto.gov
BUSINESS ENGAGEMENT
Palo Alto recognizes the importance of businesses
of all sizes as vital to the City
The City is hosting training sessions for small
businesses and has ongoing engagement with the
Chamber
This year we are also hosting a Business Reception
in October for our major employers
Exercise disciplined financial management
to ensure city revenues and expenses
remain balanced and sustainable, and are
fiscally strategic and responsible.
State of the City I August 19, 2026 PaloAlto.gov
NAVIGATING FISCAL
LIMITATIONS, PRESERVING
CRITICAL SERVICES
Council adopted a balanced Fiscal Year 2027
operating budget by addressing a projected
$17 M General Fund deficit
In a period of fiscal constraints, the budget
prioritizes critical services, and tackles
unanticipated expenditures
State of the City I August 19, 2026 PaloAlto.gov
Earn public trust through transparent
leadership, inclusive engagement, and
open communication, and centering equity
in decision-making.
State of the City I August 19, 2026 PaloAlto.gov
ACCOUNTABLE GOVERNANCE
Council Value
JED PARTNERSHIP
Through the City’s partnership with the
JED Foundation, we are continuing our
commitment to youth mental health.
For the JED report when released, and
other resources go to
www.paloalto.gov/JED
State of the City I August 19, 2026 PaloAlto.gov
NEW CITY ATTORNEY
LEADERSHIP
Council appointed Christopher Jensen as
the new City Attorney this year
Chris has a deep background in municipal
law, and has served previously as a City
Attorney
He comes to us from the City of Berkeley
and previously served in Cupertino
State of the City I August 19, 2026 PaloAlto.gov
As the birthplace of Silicon Valley, embrace
innovation in the public and private
sectors to optimize efficiency and
outcomes.
State of the City I August 19, 2026 PaloAlto.gov
STRATEGIC INNOVATION
Council Value
This week, the Public Safety Building
will open its doors to support
records requests and other services
In an innovative service delivery
model, the Public Safety Building
brings the Police Department, Fire
Administration and
Emergency Services together under
one roof
State of the City I August 19, 2026 PaloAlto.gov
PUBLIC SAFETY BUILDING
Construction of Fire Station
No. 4 remains on schedule for
completion in June 2027
State of the City I August 19, 2026 PaloAlto.gov
FIRE STATION #4
REPLACEMENT
NEW FIRE CHIEF & POLICE CHIEF
Selection of new Fire Chief Stephen Lindsey
Selection of new Police Chief James Reifschneider
State of the City I August 19, 2026 PaloAlto.gov
ADVANCING
GENERATIONAL PROJECTS
Regional Water Quality Control Plant
PaloAlto.gov
The Plant has been in operation since 1934,
with major projects underway totaling an
estimated $397.2 million investment
Initial upgrades are on track for 2028
completion
State of the City I August 19, 2026
ADVANCING
GENERATIONAL PROJECTS
Grid Modernization
State of the City I August 19, 2026 PaloAlto.gov
Enhance reliability and resiliency of the City’s
electric system support customers’ desires to
switch to the City's clean electric energy
Over the next decade, we expect to invest
approximately $400 million dollars in
system replacement and upgrades
Center equity in every decision, and
advance housing, workforce, and social
policies that promote inclusion,
socioeconomic diversity, and opportunity.
State of the City I August 19, 2026 PaloAlto.gov
EQUITY AND SHARED PROSPERITY
AND HOUSING LEADERSHIP
Council Value
HOUSING PROGRESS
Permitted 916 units since 2023
Over 15% of our Regional Housing Needs
Allocation (RNHA target) for the current
cycle
Another 3,335 units in the pipeline (1,467
entitled units and 1,603 under planning
review).
The City launched an online Housing
Dashboard tracking housing production and
permitting
State of the City I August 19, 2026 PaloAlto.gov
Find the new Housing Dashboard at
www.paloalto.gov/housing
Lead with urgency on climate action and
adaptation, sustainability, and
environmental protection for current and
future generations.
State of the City I August 19, 2026 PaloAlto.gov
CLIMATE LEADERSHIP AND
ENVIRONMENTAL STEWARDSHIP
Council Value
State of the City I August 19, 2026 PaloAlto.gov
CLIMATE LEADERSHIP
Palo Alto’s history taking on climate
change, has helped us in so many
ways
By 2024, Palo Alto reduced
emissions 50% from the 1990
baseline
We aim to reduce emissions from:
Buildings with home
electrification services
Vehicles with better EV charging
infrastructure
State of the City I August 19, 2026 PaloAlto.gov
HOME UPGRADES WITH LASTING BENEFITS
Palo Alto’s first of its kind full-service Heat
Pump Water Heater and Emergency Water
Heater Replacement programs support
switching from gas to electric appliances
Earlier this year, we expanded the program, to
include all major appliances!
We have more than tripled rebate activity
compared to 2024, when only HPWH rebates
were available
State of the City I August 19, 2026 PaloAlto.gov
PALO ALTO HORIZONTAL LEVEE PILOT PROJECT
Nature-based approach to combatting
sea level rise
The first in Bay Area
Foster a safe, healthy, and welcoming
community where everyone belongs and
can thrive physically, mentally, and
socially.
State of the City I August 19, 2026 PaloAlto.gov
PALO ALTO PRIDE
Palo Alto held its first Pride Event under the
leadership of two students
40 community organizations and service
providers tabled to support this well-
attended event.
The collaboration and community focus to
uplift our community together was truly
impactful and valuable
State of the City I August 19, 2026 PaloAlto.gov
THURSDAY LIVE ON
CAL AVE.
The Palo Alto Recreation Foundation, in
partnership with the City of Palo Alto and
sponsors Mark Zuckerberg and Priscilla
Chan, Stanford Research Park, and the Palo
Alto Weekly, launched Thursday Live on
Cal Ave. in May
Transforming car free Cal Ave. into a lively
gathering space, join the fun this August –
October!
State of the City I August 19, 2026 PaloAlto.gov
PARTNERSHIPS THAT
BRING US TOGETHER
Collaboration with partners – PAUSD,
Caltrain, neighbors, students- to discuss
possible Churchill Ave. temporary closure
towards resolution
Adoption of an ordinance codifying the
UN’s Convention on the Elimination of All
Forms of Discrimination Against Women
(CEDAW)
State of the City I August 19, 2026 PaloAlto.gov
PaloAlto.govState of the City I August 19, 2026
Achieve Near-Term Policy Housing Milestones
Cubberley Acquisition and Renovation Funding
Enhance Business Vibrancy
Government Efficiency
COUNCIL PRIORITIES
Policy priorities to advance our values
State of the City I August 19, 2026 PaloAlto.gov
ACHIEVE NEAR-TERM PRIORITY
HOUSING MILESTONES
Advancing the San Antonio Road Area Plan
Submitted a Pro-housing Designation
Advancing the City’s Housing Element programs
Addressing oversized vehicle impacts
in neighborhoods and business areas while
recognizing human realities
HOMEKEY PALO ALTO
OPENS
This spring, the City and partners celebrated
the opening of HomeKey, a first-of-its-kind
modular interim housing co-developed by
the City and LifeMoves
Featuring 88 modular rooms with ensuite
bathrooms, on-site services, and spaces for
counseling and vocational training
for approximately 200 individuals per year
State of the City I August 19, 2026 PaloAlto.gov
AFFORDABLE HOUSING
COMMITMENT
Progress on affordable housing continues with
developments completed, under
construction and advancing in the pipeline.
Completed:
Mitchell Park Place, units for IDD adults
231 Grant County Teacher/Education affordable
housing
State of the City I August 19, 2026 PaloAlto.gov
HOUSING PROGRESS More affordable housing under
construction:
Charities Housing project at 3001 El
Camino Real; 130 affordable units
Acclaim project at 3150 El Camino
Real; affordable and market rate
Future Projects
Matadero Creek Affordable Housing
Alta Housing was selected to advance
a 100% affordable housing project on
a downtown City parking lot
State of the City I August 19, 2026 PaloAlto.gov
State of the City I August 19, 2026 PaloAlto.gov
Council unanimously placed the Community
Safety/Services Measure on the November ballot,
asking voters to increase the City’s sales tax by a ½
cent (0.50%), providing approximately $15.6M
annually in revenue to invest in the community’s
vision for the Cubberley Community Center
Council adopted the Cubberley Conceptual Master
Plan to reimagine and prioritize a long-term vision
for a future community center campus
CUBBERLEY ACQUISITION AND
RENOVATION FUNDING
State of the City I August 19, 2026 PaloAlto.gov
ENHANCE BUSINESS VIBRANCY
Developing a formal Business
Retention/Expansion/Attraction (BRE/A)
program
Adopted a Retail Vitality Ordinance to combat
ground floor vacancies
Events to activate commercial districts
New murals and public art
State of the City I August 19, 2026 PaloAlto.gov
CAL AVE. INVESTMENTS
New entertainment zone to support businesses and
events on Cal Ave.
Outdoor activation guidelines adopted
"Shop, Dine, and play" signs at El Camino Real and on
Birch near Oregon Expressway will be installed in
January
State of the City I August 19, 2026 PaloAlto.gov
GOVERNMENT EFFICIENCY
Balanced budget prioritizing government
efficiencies and preserving critical services,
public safety and community services,
continuing community partnerships
Citywide Consultant stewardship
framework advancing quality practices
Advanced several major changes to the
City’s Palo Alto 311, improving the clarity
and timing of constituent response
STATE OF
THE CITY IS....
Based on the secret sauce of
community-minded residents
and organizations,
That work, play and stand
together
To form ONE COMMUNITY
That makes the State of our
city....
STRONG!
State of the City I August 19, 2026 PaloAlto.gov
State of the City I August 19, 2026 PaloAlto.gov
State of the City I August 19, 2026 PaloAlto.gov
SPECIAL GUEST APPEARANCE
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LILY ZHANG
State of the City I August 19, 2026 PaloAlto.gov
SPECIAL GUEST APPEARANCE
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JINBAO MA