Cities Index.
State of the City 2026 Presentation

Palo Alto City Council
August 19, 2026

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State of the City 2026 Presentation
Meeting
August 19, 2026
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Palo Alto City Council
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Text extracted from the city's file for reading and search. Open the original on cityofpaloalto.primegov.com. That file is the official record.

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
usatt.org
teamusa.com

LILY ZHANG

State of the City I August 19, 2026 PaloAlto.gov

SPECIAL GUEST APPEARANCE
mltt.com
butterflyonline.com

JINBAO MA

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