administration, participation requirements, federal compliance obligations, and other provisions required by HUD. The amendment also extends participation in the Urban County Program for Federal Fiscal Years 2027, 2028, and 2029 and one subsequent three-year qualification period.
Additionally, the amendment includes language acknowledging that San Mateo County is a plaintiff in King County et al. v. Turner et al., 2:25-cv-00814-BJR (W.D. Wash.), a lawsuit challenging certain terms and conditions imposed on federal grant awards. The amendment clarifies that, to the extent the Cooperation Agreement contains terms or conditions that are subject to the Preliminary Injunction issued in that case, San Mateo County is not bound by those enjoined provisions. According to the County, this provision is intended to acknowledge the court's order and does not affect the obligations of participating jurisdictions under the Agreement.
Approval of the Second Amendment will allow the City to continue participating in the Urban County Program and maintain eligibility for future CDBG, HOME, and ESG funding opportunities.
FISCAL IMPACT:
There is no direct fiscal impact to the City from the proposed action to authorize the Second Amendment of the Cooperation Agreement. A decision not to execute the new Agreement would preclude the City from participating in the Block Grant Program and from eligibility to receive funding in the future.
ENVIRONMENTAL IMPACT:
The action is not a project subject to CEQA. City Council’s action is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.
RECOMMENDATION:
Adopt a Resolution Authorizing the City Manager to Execute the Second Amendment to the Cooperation Agreement Between the City of San Bruno and San Mateo County Agreement Enabling the City to Access Federal Funding Related to the Community Development Block Grant Program, the Home Investment Partnership Program, and the Emergency Solutions Grant Program
ALTERNATIVES:
1. Do not authorize the City Manager to execute the Second Amendment to the Cooperative Agreement.
ATTACHMENTS:
1. Resolution
2. Cooperation Agreement
3. Amendment 2 to the Cooperation Agreement
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1 RESOLUTION NO. 2026 - ___
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE SECOND
AMENDMENT TO THE COOPERATION AGREEMENT BETWEEN THE CITY OF SAN
BRUNO AND SAN MATEO COUNTY AGREEMENT ENABLING THE CITY TO ACCESS
FEDERAL FUNDING RELATED TO THE COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM, THE HOME INVESTMENT PARTNERSHIP PROGRAM, AND THE EMERGENCY
SOLUTIONS GRANT PROGRAM
WHEREAS, the City of San Bruno participates in the San Mateo County Urban County Program, which enables the City to access federal funding through the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) programs; and
WHEREAS, the City entered into a Cooperation Agreement with the County of San Mateo in 2017 to participate in the Urban County Program and approved the First Amendment to the Cooperation Agreement in 2023; and
WHEREAS, as part of the Urban County qualification process for Federal Fiscal Years 2027, 2028, and 2029, the U.S. Department of Housing and Urban Development (HUD) has required updates to the existing Cooperation Agreement; and WHEREAS, HUD now requires that amendments to the Cooperation Agreement be approved by the governing body of each participating jurisdiction and executed by its chief executive officer; and
WHEREAS, approval of the Second Amendment will allow the City to continue participating in the Urban County Program and remain eligible for future CDBG, HOME, and ESG funding opportunities.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of San Bruno hereby approves the Second Amendment to the Urban County Cooperation Agreement between the City of San Bruno and the County of San Mateo.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the Second Amendment in substantially the form presented to the City Council, together with such non-substantive changes as may be approved by the City Attorney. ---oOo---
I hereby certify that foregoing Resolution No. 2026 - ___ was introduced and adopted by the San Bruno City Council at a regular meeting on June 23, 2026, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
_________________________________
Lupita Huerta, City Clerk
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V. Section 3 (County’s Responsibilities as Applicant) is hereby ☐ added ☒ amended as follows:
Amends and restates Paragraphs 4 and 5 of Subsection a. in their entirety as follows:
“Therefore, the County and City agree to cooperate to undertake, or assist in undertaking, essential community development and housing assistance activities in and for the benefit of the City, as approved or authorized between the parties in the CDBG Agreements, including the Consolidated Plan. The County and City will also strictly adhere to the Consolidated Plan as approved and to all assurances and certifications provided to HUD, including taking all actions necessary to comply with the Urban County’s certifications under Section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, that the grant will be conducted and administered in conformity with:
• Title VI of the Civil Rights Act of 1964, implementing regulations at 24 CFR Part 1; and • the Fair Housing Act, and implementing regulations at 24 CFR Part 100 and will comply with the obligation to affirmatively further fair housing; and
• Section 109 of Title I of the Housing and Community Development Act of 1974, and the implementing regulations at 24 CFR Part 6, which incorporates: Section 504 of the Rehabilitation Act of 1973, and the • implementing regulations at 24 CFR Part 8; and
• Title II of the Americans with Disabilities Act of 1974, and the implementing regulations at 28 CFR Part 35; and
• the Age Discrimination Act of 1975, and the implementing regulations at 24 CFR Part 146; and • Section 3 of the Housing and Urban Development Act of 1968; and • Uniform Relocation and Real Property Policies Act of 1970 and the implementing regulations at 49 CFR Part 24; and
• Section 104(d) of the Housing and Community Development Act of 1974 and the implementing regulations at 24 CFR Part 42; and
• all other applicable laws and regulations.
The Parties acknowledge that the Urban County is a plaintiff in King County et al. v. Turner et al., 2:25-cv-00814- BJR (W.D. Wash.) and through this litigation has obtained a Preliminary Injunction against HUD. To the extent that this Agreement purports to impose terms or conditions that are enjoined pursuant to that Preliminary Injunction, the Urban County is not bound to those enjoined terms or conditions.
The Parties agree that Urban County funding in no event will be used for activities in, or in support of, any cooperating unit of general local government that impedes the County’s actions to comply with the County’s fair housing certification and duty to affirmatively further fair housing. This provision is required because noncompliance by a unit of general local government included in an urban county may constitute noncompliance by the grantee (i.e. the Urban County) that can, in turn, provide cause for funding sanctions or other remedial actions by the Department.”
VI. Section 3 (County’s Responsibilities as Applicant), is hereby ☐ added ☒ amended as follows:
Amends and restates Subsection c. in its entirety as follows:
“Parties to this Agreement understand and agree that they may not sell, trade, or otherwise transfer all or any portion of CDBG funds to a City, Urban County, unit of general local government, or insular area that directly or indirectly receives CDBG funds in exchange for any funds, credits, or non-Federal considerations, but must use such funds for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended.”
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This c
hange is effective as of: July 1, 2027
ALL OTHER TERMS AND CONDITIONS OF THE AGREEMENT REMAIN UNCHANGED.
In witness of and in agreement with this Amendment’s terms, the Parties, by their duly authorized representatives, affix their respective signatures:
For C
ity:
_____________
______________ _ __________________ __________________________________ Signature Date Name (please print)
(City Manager)
For Cou
nty:
_____________
_______________ ____________________ ______________________ Signature Date Name (please print)
(County Executive)
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Honorable Mayor and Members of the City Council
June 23, 2026
The budget adoption staff report is organized into several sections, each directly related to adoption of the FY27 Budget:
Section 1 – Capital Improvement Program Public Hearing. Government Code 66002 provides that the City’s Capital Improvement Program (CIP) shall be adopted by resolution at a noticed public hearing. The Planning Commission is scheduled to review the CIP for conformity with the City’s General Plan on June 22, 2026. One important change to the CIP budget was that the Council received a report from the San Bruno Community Foundation’s (Foundation) on June 9, 2026, which reiterated the Foundation’s interest in funding up to $18 million in costs to rebuild Fire Station No. 52 as a legacy project. Given that the FY27 Recommended Budget included use of Measure Q to purchase land for Station 52 in FY27, staff updated the budget document to reflect the Foundation’s interest in funding the new fire station. Section 2 – FY27 Budget Adoption Resolution (Attachment 1). The FY27 Budget Adoption resolution authorizes revenue across all funds totaling $220.9 million and expenditures across all funds totaling $329.1 million. The recommended resolution incorporates several changes focused on improving the Budget Book’s usability and corrections to special revenue and enterprise funds appropriations as later discussed.
The increase in overall budget appropriations is attributed to the CIP carryover and new appropriations introduced after the budget was initially presented on May 8, 2026. Section 3 – FY27 Gann Initiatives Appropriations Limit Adoption (Attachment 2). The enabling FY27 Appropriations Limit resolution fulfills requirements under the Gann Initiatives to calculate the City’s ability to collect and subsequently appropriate general taxes. The City revenues subject to the Appropriations Limit total $52.8 million, or 17.2% below the Appropriations Limit for FY 2026-27 of $61.9 million. Section 4 – Amendments to the Fiscal Year 2025-26 Budget. Several amendments to the capital improvement program budget are being requested for FY26.
DISCUSSION:
Section 1 – Capital Improvement Program Public Hearing
Table 1 summarizes new and carryover appropriations by Fund for the Capital Improvement Program Budget. Project details are available in the City Council Adopted FY27 Budget, available online at Archive Center • Budgets
(https://www.sanbruno.ca.gov/Archive.aspx?AMID=36), beginning at Part 4: Building San Bruno’s Future – The Capital Improvement Program.
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Honorable Mayor and Members of the City Council
June 23, 2026
Table 1 – FY27 Capital Improvement Program Appropriations Fund
Resources;
Revenue, Transfers
In & Use of
Assigned Fund
Balance
Requirements:
Expenditures &
Transfers Out
003 One-Time Revenue 2,685,659.00
102 Measure A 150,000.00
104 Measure W 100,000.00
160 Community Facility Impact Fee 3,756,841.00
163 Transportation Facility Impact Fee 87,500.00
201 Parks and Facilities Capital 11,755,000.00 31,465,774.99 203 Streets Capital 8,860,000.00 30,901,806.71
207 Technology Capital 1,852,602.34
299 Measure Q General Bond Reimbursement 12,860,000.00
611 Water Fund 47,743,727.67
621 Stormwater Fund 1,000,000.00 7,043,460.36
631 Wastewater Fund 42,713,778.75
TOTAL CIP APPROPRIATIONS 21,615,000.00 181,361,150.82
Section 2 – FY27 Budget Adoption Resolution (Attachment 1) The City Council received the City Manager’s FY27 Recommended Budget at their meeting on June 9, 2026. The City Council Adopted FY27 Budget Summary, which is Exhibit A to the Budget Adoption Resolution (Attachment 1), formally adopts the FY27 budget appropriations by fund and authorizes the expenditure of those funds in FY27. As presented on June 9, the overall expenditure appropriations totaled $281 million. The budget has been updated to incorporate an increase in the overall expenditure appropriations to $329 million, as summarized in Table 2.
Table 2 – Appropriations Reconciliation: Recommended to Adopted FY27 Budget Budget by Fund
City Manager's
Recommended FY27
Budget Appropriations
(Rounded; In Millions)
City Council
Adopted FY27 Budget
Appropriations
(Rounded; In Millions)
General Funds $81.6 $84.3
Special Revenue Funds $13.7 $17.8
Enterprise Funds $129.4 $137.5
General Capital Project Funds $43.3 $76.3
Internal Service & Debt $13.2 $13.2
Total $281.2 $329.1
Material changes to the Recommended FY27 Budget that are now included in the Adopted FY27 Budget Summary are the result of and update to CIP carryover appropriations and inclusion of the CIP interfund transfers which were not in the May 8, 2026 City Manager’s Budget Transmittal due to the focus on reimaging the CIP budget in light of staff reductions related to State actions threatening City revenue:
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Honorable Mayor and Members of the City Council
June 23, 2026
1. Interfund transfers for Capital Improvement Program (CIP) funding included in the City Manager’s FY27 Recommended Budget. The CIP was finalized after preparation of the operating budget, and the funding schedule did not have the opportunity to record the required interfund transfers to fund the identified projects.
Therefore, the increase of approximately $48 million is primarily attributable to General Capital Project Funds, which increased by approximately $33.0 million. As referenced above, this reflects updated capital project appropriation needs, including carryover and project funding adjustments that were included after the Recommended Budget was released. Additional increases were also made in Enterprise Funds by approximately $8.1 million, Special Revenue Funds by approximately $4.1 million, and General Funds by approximately $2.7 million. Internal Service and Debt appropriations remained unchanged.
Overall, the difference between the Recommended and Adopted Budget totals is largely driven by final adjustments to capital, restricted, and enterprise fund appropriations rather than a broad increase in ongoing General Fund operating costs. The Adopted Budget total provides the final appropriation authority for FY27 based on the most current fund-level and project-level information available at the time of adoption.
Section 3 – FY27 Gann Initiatives Appropriations Limit Adoption (Attachment 2) The Gann Initiatives, Proposition 4 and 111, established the Gann or Appropriations Limit (Limit) to regulate tax revenue management for all public agencies in California. As approved by California voters, the Limit caps the tax-generated revenue that a public agency can receive and appropriate each year. The Limit is determined based on each agency's 1978-79 base year appropriation of tax proceeds and is adjusted annually to account for cost-of-living and population growth. The Gann Initiatives Appropriations Limit for San Bruno is adjusted according to indexes provided by the California State Department of Finance. For San Bruno, the FY26 Limit was $59,038,112.
For FY27, the City’s Limit is $61,941,911, and the FY27 General Fund appropriations subject to the Limit total $52.8 million. Therefore, the City's FY27 budget is 14.7% below the FY27 Limit. If proceeds from taxes subject to the Limit exceed the Limit, the City must determine whether to seek voter approval to override the Limit or refund taxes collected more than the Limit. To determine compliance with the Limit, the City compares revenues subject to the Limit with estimated proceeds from taxes adjusted for certain exemptions. Revenues subject to the Limit are proceeds from property, sales, cannabis, transient occupancy, and business taxes.
Exemptions from the Limit include certain expenditures, such as those for debt service, capital outlay, and federal mandates.
The adjustment of last year’s limit and the worksheet for determining whether appropriated funds are within the limit are included as Exhibit A to the Resolution adopting the City’s Fiscal Year 2026-27 Appropriations Limit (Attachment 2).
Section 4 – Amendments to the Fiscal Year 2025-26 Budget and Closure of the CityNet Fund
City staff request several amendments to the operating and capital improvement program budget for FY26. The amendments document activity to track legislative approval of changes to the CIP. The recommended FY26 budget amendments are summarized below in Tables 3.
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Honorable Mayor and Members of the City Council
June 23, 2026
Table 3 - Capital Improvement Program Budget Amendments Program
Area Project Name & No. Amendment Request
Facilities
Senior Center Improvement
Program #51030
Close 51030 and transfer remaining funds to new
CIP Facilities project: Senior Center Renovation
Project
Parks
Recreation and Aquatic
Center Landscaping
Improvement #51045
Transfer $100k from Measure G (from General
Fund (001) to Parks and Facilities (201)).
Streets
Sidewalk Repair Program
#60036, 60040, 60049,
60056
Close out 4 projects and transfer all remaining
funds to new CIP: 2026-27 Clear Path Sidewalk
Project
Technology
Enterprise Resource
Planning System
Replacement #81024
Close the following two CIPs and transfer funds
to 81024:
- Business Continuity - IT Disaster Recovery Plan
(81023)
- EOC Equipment Upgrade (81022)
Wastewater
Ave 2-3 #31011
Ave 3-2 #31013
Combine Ave 2-3 (31011) & 3-2 (31013) Sewer
Main Replacement Project
Keep 31011 as the project number
Update project name to: Ave 2-3 and 3-2 Sewer
Main Replacement Project
Transfer budget from 31013 to 31011
Water
Cunningham Tank #85100
Cunningham PRV #11018
Combine Cunningham Tank (85100) and
Cunningham PRV (11018)
Keep 85100 as the project number
Update project name to: Cunningham Tank and
Pressure Regulator Station Replacement
Transfer the budget from 11018 to 85100
Water
Ave 2-3 #11026
Ave 3-2 #11010
Combine Ave 2-3 (11026) & 3-2 (11010) Water
Main Replacement Project
Keep 11010 as the project number
Update project name to: Ave 2-3 and 3-2 Water
Main Replacement Project
Transfer budget from 11026 to 11010
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Honorable Mayor and Members of the City Council
June 23, 2026
Water
Whitman Pump Station
#11012
Princeton Pump Station
#11021
Combine Whitman (11012) and Princeton
(11021) Pump Station Generator Project
Keep 11012 as the project number
Update project name to: Whitman and Princeton
Pump Station Generator Project
Transfer budget from 11021 to 11012
Staff is also requesting authority to formally close the CityNet Fund as of June 30, 2026. The CityNet Fund is no longer required with the sale of CityNet in 2025-26. Staff continues to conduct the year-end closing procedures, and a final accounting of the Fund is anticipated in August 2026.
ENVIRONMENTAL IMPACT:
The action is not a project subject to CEQA. City Council’s action is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.
RECOMMENDATION:
Conduct a Public Hearing on the Fiscal Year 2026-27 Capital Improvement Program Budget; and Approve: (i) a Resolution Adopting the Fiscal Year 2026-27 Operating and Capital Improvement Program Budget, (ii) a Resolution Adopting the Fiscal Year 2026-27 Appropriations Limit of $61,941,911, and (iii) a Resolution Amending the Fiscal Year 2025-26 Budget and Authorizing Closure of the CityNet Fund as of June 30, 2026 ATTACHMENTS:
1. Resolution Adopting the Fiscal Year 2026-27 Budget
2. Resolution Adopting the City’s Fiscal Year 2026-27 Appropriation Limit (Gann Limit) of $61,941,911
3. Resolution Amending the Fiscal Year 2025-26 Budget and Authorizing Closure of the CityNet Fund as of June 30, 2026
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1 RESOLUTION NO. 2026 - __
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO ADOPTING THE FISCAL YEAR 2026-27 BUDGET
WHEREAS, the City Council is the legislative body for the City of San Bruno and the San Bruno Public Financing Authority, and serves as the Board of Directors of the Successor Agency to the San Bruno Redevelopment Agency; and
WHEREAS, the City prepares and adopts a balanced annual budget with the intent of providing a planned policy program for City services and a financial system to carry out the planned program of services; and
WHEREAS, Municipal Code Section 2.12.060 requires the City Manager to prepare and transmit a recommended budget annually; and
WHEREAS, the City Council adopted their Fiscal Year 2026-27 (FY27) Budget Principles and Priority Initiatives at their meeting on February 10, 2026; and WHEREAS, the Revenue Measure Oversight Committee met on February 19, 2026 to receive staff’s recommended uses of Measure G Sales Tax funds for Fiscal Year 2026-27 to fund continuation of the Cleanup San Bruno initiative, offset General Fund street maintenance operations through the pavement repair patch truck and related maintenance activities, support the Council Priority Initiative Catalyze Innovation with limited term funding for a Special Project Manager through June 30, 2028, and supplement the General Fund to fill the gap between projected and actual increases in Public Safety salaries resulting from new labor agreements entered into in 2026; and WHEREAS, the City Manager transmitted the City Manager’s Recommended Fiscal Year 2026-27 Budget (FY27 Recommended Budget) transmittal message on May 8, 2026, followed by the operating budget on May 15, 2026, and the capital budget on May 22, 2026; and WHEREAS, the City Manager presented the FY27 Recommended Budget to the community at a budget workshop on June 3, 2026; and
WHEREAS, the FY27 Recommended Budget fully funded City Council’s top five priority initiatives and adhered to the City Council adopted budget principles; and WHEREAS, the FY27 Recommended Budget fully complies with the City Council adopted Fund Balance Policy by funding the Budget Stabilization Reserve and Contingency Reserve at the policy’s targets resulting in thirty percent (30%) of the proposed General Fund Fiscal Year 2026-27 budgeted expenditures; and
WHEREAS, the FY27 Recommended Budget fully funds City’s Fiscal Year 2026-27 unfunded pension liability payment and Pension Obligation Bonds debt service payment; and WHEREAS, the City Council finds that the proposed Capital Improvement Program is consistent with the General Plan policies because it will enhance the achievement of the General Plan by maintaining and upgrading public facilities, increasing energy efficiency and improve infrastructure; and
WHEREAS, the City Manager presented the FY27 Recommended Budget, including the Capital Improvement Program budget, to the City Council at their June 9, 2026 meeting and City 315 of 331 ATTACHMENT 1
2 Council provided direction for staff’s preparation of the City Council Adopted Budget on June 23, 2026; and
WHEREAS, the published City Council Adopted FY27 Budget will reflect the revised appropriations totaling $329 million as shown in Exhibit A; and WHEREAS, the published City Council Adopted FY27 Budget will further incorporate updates to the Capital Improvement Program as referenced in the June 23, 2026 Staff Report and update program totals to reflect carryovers and budgeted expenditures after the June 30, 2026 year-end close; and
WHEREAS, the City Council, being fully advised and informed and having fully reviewed the City Council Adopted FY27 Budget, finds that the Fiscal Year 2026-27 Budget should be adopted and prepared in final form.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Bruno hereby:
1. Adopts the Fiscal Year 2026-27 Budget as provided in Exhibit A; and
2. Authorizes an administrative budget amendment and requisite journal entries necessary to adjust the Adopted Fiscal Year 2026-27 Budget to the audited starting balances in unassigned funds, reserves, projects, and encumbrances following the issuance of the June 30, 2026 financial statements; and
3. Directs City staff to compile and publish the final City Council Adopted Fiscal Year 2026-27 Budget.
Exhibit A - City Council Adopted Fiscal Year 2026-27 Appropriations —oOo—
I hereby certify that foregoing Resolution No. 2026 - ____ was introduced and adopted by the San Bruno City Council at a regular meeting on June 23, 2026, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
_________________________________
Lupita Huerta, City Clerk
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EXHIBIT A
3 EXHIBIT A
City Council Adopted Fiscal Year 2026-27 Appropriations F und Name
E st. B eginning
F und B alance,
7/1/26 Revenues E xpenditures
Net Revenue /
(E xpenditure)
E st. E nding
F und B alance,
6/30/27
G eneral F und 26,823,065 75,425,071 75,240,727 184,344 27,007,409 B udget S tabilization R eserve 13,530,462 - - - 13,530,462 One-T ime R evenue 11,353,429 - 5,770,442 (5,770,442) 5,582,987 C ontingency R eserve 10,839,919 4,000,000 - 4,000,000 14,839,919 Measure G District S ales T ax 1,268,292 3,500,000 3,250,000 250,000 1,518,291 T otal General F unds 63,815,166 82,925,071 84,261,169 (1,336,098) 62,479,068 C ommunity Development 3,380,721 7,246,300 5,867,592 1,378,708 4,759,429 R ecreation & A quatics (260,651) 4,438,724 4,466,828 (28,104) (288,755) G as T ax 871,701 2,490,829 625,000 1,865,829 2,737,529 Measure A T ransportation T ax 1,132,616 1,386,150 150,000 1,236,150 2,368,766 S treet S pecial R evenue 156,905 5,100 - 5,100 162,005 Measure W T ransportation T ax 1,167,216 540,920 100,000 440,920 1,608,136 P olice A sset F orfeiture 538,778 16,000 59,765 (43,765) 495,013 P olice S pecial R evenue 306,674 192,000 125,000 67,000 373,674 F ederal/S tate G rants (486,259) 270,000 103,909 166,091 (320,168) S olid W aste/R ecycl. 431,466 273,321 199,863 73,458 504,924 In-L ieu F ees 4,091,269 414,500 300,947 113,553 4,204,822 A gency On A ging (490,585) 857,951 1,072,289 (214,338) (704,923) R estricted R evenues 3,413,757 359,000 863,545 (504,545) 2,909,212 E mergency Disaster R eserve 174,038 107,000 - 107,000 281,038 Developer P roject C ontributions 25,277 - 521 (521) 24,757 A ffordable Housing 10,357,597 345,000 - 345,000 10,702,597 R DA Obligation R etirement F und 700,649 100 - 100 700,749 C ommunity F acility Impact F ee 4,064,992 135,000 3,756,841 (3,621,841) 443,151 P ublic S afety Impact F ee 24,821 1,000 - 1,000 25,821 G eneral G overnment Impact F ee 234,340 8,000 - 8,000 242,340 T ransportation F acility Impact F ee 6,243,559 205,000 87,500 117,500 6,361,059 Utility F acility Impact F ee 360,304 13,000 - 13,000 373,304 B ayhill A rea Development Impact F ee 4,325,698 162,000 - 162,000 4,487,698 C ommunity B enefit F und 9,973,108 350,000 - 350,000 10,323,108 T otal S pecial Revenue F unds 50,737,992 19,816,895 17,779,601 2,037,293 52,775,285 P arks A nd F acilities C apital 19,965,981 11,805,000 30,795,775 (18,990,775) 975,206 S treet Improvement P rojects 22,254,173 8,960,000 30,859,073 (21,899,073) 355,100 T echnology C apital 1,930,847 200,000 1,852,602 (1,652,602) 278,245 Measure Q - 34,000,000 12,860,000 21,140,000 21,140,000 T otal Capital P roject F unds 44,151,001 54,965,000 76,367,451 (21,402,451) 22,748,550 W ater F und 88,140,085 21,927,000 66,084,814 (44,157,814) 43,982,271 S tormwater F und 3,574,398 2,526,000 9,431,747 (6,905,747) (3,331,349) W astewater F und 90,315,352 23,853,000 60,257,472 (36,404,472) 53,910,880 P arking F und 2,033,929 1,160,000 1,717,547 (557,547) 1,476,382 T otal E nterprise F unds 184,063,764 49,466,000 137,491,579 (88,025,579) 96,038,185 C entral G arage 201,918 1,676,510 1,681,262 (4,752) 197,167 F acility Maint.F und 668,248 2,987,132 2,993,517 (6,385) 661,862 T echnology Development 1,060,780 2,831,816 2,538,414 293,402 1,354,182 S elf Insurance 1,969,231 4,827,271 4,619,113 208,158 2,177,389 T otal Internal S ervice F unds 3,900,177 12,322,729 11,832,306 490,423 4,390,600 L ease Debt S ervice - 1,370,500 1,367,283 3,217 3,217
T otal Debt S ervice F unds - 1,370,500 1,367,283 3,217 3,217 A ll F unds 346,668,099 220,866,194 329,099,389 (108,233,195) 238,434,904 F Y 27 A ppropriations
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1 RESOLUTION NO. 2026 - ___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO ADOPTING THE CITY’S FISCAL YEAR 2026-27 APPROPRIATIONS LIMIT (GANN LIMIT) OF $61,941,911 WHEREAS, the City Council acts as the legislative body for the City of San Bruno and the San Bruno Public Financing Authority, and serves as the Board of Directors of the Successor Agency to the San Bruno Redevelopment Agency; and
WHEREAS, Article XIII of the California Constitution and Section 7900 et seq. of the California Government Code require cities to adopt limits on appropriations for each fiscal year; and WHEREAS, the California Department of Finance issued their annual transmittal to Fiscal Officers in May 2026, detailing estimated changes in Price Factor and Population Information as of January 1, 2026 which are necessary to calculate the Appropriations Limit; and WHEREAS, the Price Factor and Population Information memorandum estimates that the statewide change in cost of living using per capita personal income will increase 4.95% for Fiscal Year 2026-27; and
WHEREAS, the Price Factor and Population Information memorandum estimates that San Mateo County’s population decreased by 0.03 percent and San Bruno’s population decreased by 0.37 percent from January 1, 2025 to January 1, 2026; and
WHEREAS, City staff have calculated the Appropriations Limit using the statewide change in per capita income of 4.95 percent and the County of San Mateo’s population increase of 0.03 percent, for a blended adjustment factor of the City Council adopted Fiscal Year 2025-26 Appropriations Limit of 4.92 percent; and
WHEREAS, the City Council, being fully advised and informed and having fully reviewed the Appropriations Limit Report, finds and determines that Appropriations Limit should be adopted and prepared in final form;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Bruno hereby:
1. Selects the change in statewide per capita personal income and the change in population for San Mateo County as provided in the May 2026 letter from the California Department of Finance to Fiscal Officers; and
2. Adopts the Appropriations Limit for Fiscal Year 2026-27 of $61,941,911 and the report detailing the Appropriation Limit calculation detailed in Exhibit A; and
3. Reserves the right to recalculate this Appropriations Limit utilizing Non-Residential Assessed Valuation.
---oOo---
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2 I hereby certify that foregoing Resolution No. 2026 - ___ was introduced and adopted by the San Bruno City Council at a regular meeting on June 23, 2026, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
_________________________________
Lupita Huerta, City Clerk
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2 321 of 331
EXHIBIT A
3 Exhibit A
City of San Bruno
FY 2026-27 Gann Appropriation Limit
Date Prepared: 6/15/25
FY 2025-26 Appropriation Limit $ 59,038,112
Calculation of FY 2026-27 Adjustment Factor
Annual Change Factors
Cost of Living Adjustment Factors for FY 2026-27
California Per Capita Personal Income (CPCPI) 4.95%
Population Adjustment Factors for FY 2026-27
San Mateo County Population Change -0.03%
Adjustment Factor for FY 2026-27
(1 +0.0495 x (1 - 0.0003) 1.04918515
FY 2026-27 Appropriation Limit 61,941,911
Proceeds of Taxes 56,859,775
Exclusions:
Qualified Capital Projects and Debt (4,025,477)
FY 2026-27Appropriations Subject to Limit 52,834,298 Over (Under) Appropriations Limit $ (9,107,613)
Percent Over (Under) -14.70%
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2 Keep 31011 as the project number
Update project name to: Ave 2-3 and 3-2 Sewer
Main Replacement Project
Transfer budget from 31013 to 31011
Water
Cunningham Tank #85100
Cunningham PRV #11018
Combine Cunningham Tank (85100) and
Cunningham PRV (11018)
Keep 85100 as the project number
Update project name to: Cunningham Tank and
Pressure Regulator Station Replacement
Transfer the budget from 11018 to 85100
Water
Ave 2-3 #11026
Ave 3-2 #11010
Combine Ave 2-3 (11026) & 3-2 (11010) Water
Main Replacement Project
Keep 11010 as the project number
Update project name to: Ave 2-3 and 3-2 Water
Main Replacement Project
Transfer budget from 11026 to 11010
Water
Whitman Pump Station
#11012
Princeton Pump Station
#11021
Combine Whitman (11012) and Princeton
(11021) Pump Station Generator Project
Keep 11012 as the project number
Update project name to: Whitman and Princeton
Pump Station Generator Project
Transfer budget from 11021 to 11012
2. Directs staff to make the appropriate entries to the City’s financial system to reflect this action.
3. Authorizes staff to formally close the CityNet Fund as of June 30, 2026. ---oOo---
I hereby certify that foregoing Resolution No. 2026 - ___ was introduced and adopted by the San Bruno City Council at a regular meeting on June 23, 2026, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
_____________________________
Lupita Huerta, City Clerk
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Honorable Mayor and Members of the City Council
June 23, 2026
2. Disruption - Notification to the Mayor. If a disruption affects the public's ability to hear or participate in a meeting, the Responsible Person or City Clerk must immediately notify the Mayor. Disruptions caused by an individual participant's personal technological issues do not qualify.
3. Announcement by the Mayor. The Mayor announces the disruption and calls a recess of up to one hour, or until service is restored.
4. Recordation of the Time Recess is Called. The City Clerk records the time the recess begins.
5. Good Faith Attempt to Restore Service to the Hybrid Platform. During the recess, the Responsible Person must make a good-faith effort to restore service, including trouble- shooting equipment, software, internet or telephone connections, and contacting support providers.
6. Troubleshooting Hybrid Platform is Successful. The City Clerk notifies the Mayor that the matter has been resolved. The Mayor reconvenes the meeting and the public informed that service has been restored. The City Clerk records the time the meeting was reconvened.
7. Troubleshooting Hybrid Platform is Not Successful. The City Clerk informs the Mayor and describes restoration efforts. The meeting is reconvened. The City Council may vote to continue the meeting if it finds that good-faith efforts were made; and the public interest in continuing the meeting outweighs the public interest in remote participation. If the finding is approved, the meeting continues; otherwise, the meeting must be adjourned.
8. Documentation. The City Clerk must document in meeting minutes: (i) the nature and time of the disruption, (ii) the time recess was called, (iii) the restoration efforts taken, (iv) the time the meeting was reconvened, and (v) any actions regarding continuing the meeting.
9. Certain Meetings Exempt. Certain meetings are exempt from the remote participation requirements, including (i) judicial or administrative proceedings involving the City; (ii) real or personal property inspections; (iii) meetings with state or federal officials on legislative or regulatory issues; (iv) meetings at City facilities concerning those facilities; and (v) emergency meetings pursuant to Government Code Section 54956.5.
10. Closed Session During Recess. The City Council may meet in closed session during this period for items listed in the closed session agenda for that meeting.
FISCAL IMPACT:
Adoption of the proposed policy is not expected to have a significant fiscal impact. Existing technology systems and staffing resources will be utilized to implement the policy. Future costs associated with technology upgrades or backup communication systems, if any, will be considered through the City's annual budget process.
ENVIRONMENTAL IMPACT:
The action is not a project subject to CEQA. City Council’s action is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required. 326 of 331
Honorable Mayor and Members of the City Council
June 23, 2026
RECOMMENDATION:
Adopt Resolution Establishing a Policy Addressing Disruption of Telephonic or Internet Services Occurring During City Council Meetings Pursuant to Senate Bill 707.
ALTERNATIVES:
Do not adopt the policy as presented, and direct staff to make changes.
ATTACHMENTS:
1. Resolution with Exhibit A, Internet Service and Telephonic Service Disruption Policy 327 of 331
1 RESOLUTION NO. ___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO ESTABLISHING A
POLICY ADDRESSING DISRUPTION OF TELEPHONIC OR INTERNET SERVICES OCCURRING DURING CITY COUNCIL MEETINGS PURSUANT TO SENATE BILL 707 WHEREAS, the Ralph M. Brown Act, codified in California Government Code section 54950 et seq., establishes requirements for open and public meetings of legislative bodies; and WHEREAS, the California Legislature enacted Senate Bill 707 (SB 707), effective January 1, 2026, which amended the Brown Act and added Government Code section 54953.4; and
WHEREAS, Government Code section 54953.4 requires eligible legislative bodies, including the City Council of the City of San Bruno, to provide members of the public with the opportunity to attend public meetings through a two-way telephonic service or two-way audiovisual platform beginning July 1, 2026; and
WHEREAS, Government Code section 54953.4 further requires eligible legislative bodies to adopt, on or before July 1, 2026, a policy addressing disruptions of telephonic or internet services occurring during public meetings; and WHEREAS, the City Council desires to establish procedures that ensure meaningful public access to City Council meetings when disruptions to telephonic or internet services affect remote participation; and
WHEREAS, the City Council finds that adoption of the policy set forth herein is exempt from the California Environmental Quality Act (CEQA) because it is not a project pursuant to CEQA Guidelines section 15378.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Bruno hereby establishes the Internet Service and Telephonic Service Disruption Policy as provided in the Policy attached hereto as Exhibit A. Said Policy will take effect on July 1, 2026.
Exhibit A: Internet Service and Telephonic Service Disruption Policy ---oOo---
I hereby certify that foregoing Resolution No. 2026 - ___ was introduced and adopted by the San Bruno City Council at a regular meeting on June 23, 2026, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
_________________________________
Lupita Huerta, City Clerk
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ATTACHMENT 1
2 Exhibit A
INTERNET SERVICE AND TELEPHONIC SERVICE DISRUPTION POLICY City of San Bruno
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3 Background
The Ralph M. Brown Act, commonly known as the “Brown Act,” is found in the California Government Code commencing with Section 54950.1 In 2025, the California Legislature passed Senate Bill 707 (“SB 707”), which became effective January 1, 2026 and extensively amended the Brown Act.
SB 707 added Section 54953.4 to require specific actions by an “eligible legislative body” to make meetings more accessible to the public. The San Bruno City Council is an “eligible legislative body,” as defined by Section 54953.4(e)(2). Beginning July 1, 2026, public meetings held by an eligible legislative body are required to include an opportunity for members of the public to attend via a two-way telephonic service or a two-way audiovisual platform (such as Zoom), commonly referred to as a “hybrid meeting.”
In conjunction with hybrid meetings, SB 707 requires the City Council on or before July 1, 2026, to approve a policy regarding the disruption of telephonic or internet services occurring during its meetings. The adoption of such policy must occur at a noticed public meeting of the City Council and not as an item on the consent calendar.
Policy
1. Designation of “Responsible Person” for the City’s Two-Way Audiovisual Platform or Two-Way Telephonic Service. The City Manager or the City Manager’s designee shall identify a City employee (“Responsible Person”) who is responsible for operating, or overseeing the operation of, the two-way audiovisual platform or two-way telephonic service, referred to herein as the “Hybrid Platform.”
2. Disruption - Notification to the Mayor. At such time that the Responsible Person or the City Clerk determines that the City is experiencing a disruption of the telephone or internet service that affects the Hybrid Platform, the Responsible Person or the City Clerk shall immediately inform the Mayor (or inform the Vice Mayor, in the Mayor’s absence) that the Hybrid Platform service has been disrupted and a recess is required to restore service. A disruption exists when the Hybrid Platform service experiences a technological issue that obstructs the public’s ability to hear, or verbally participate in, the meeting. A disruption does not exist when public participation is obstructed by telephone, internet, or other technological issues that are unique to or under the control of a public participant.
3. Announcement by the Mayor. The Mayor (or Vice Mayor, in the Mayor’s absence) shall make an announcement regarding the need to call a recess because there is a disruption to the Hybrid Platform service. After such announcement, the Mayor (or Vice Mayor, in the Mayor’s absence) shall call the recess and inform the audience that the recess will last for up to an hour or until service is restored to the Hybrid Platform, whichever is earlier.
4. Recordation of the Time Recess is Called. The City Clerk shall record the time at which the recess is called.
5. Good Faith Attempt to Restore Service to the Hybrid Platform . During the recess, the Responsible Person shall make a good faith attempt to restore service to the Hybrid Platform. A good faith attempt includes, but is not limited to, checking the internet or telephonic 1 All section references are to the California Government Code.
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4 connection, checking, resetting, repairing, or replacing cameras, speakers, microphones and other similar equipment, contacting support staff or service providers, and troubleshooting software and hardware.
6. Troubleshooting Hybrid Platform is Successful. If the Responsible Person restores service to the Hybrid Platform within one hour of calling the recess, then the City Clerk shall inform the Mayor (or Vice Mayor, in the Mayor’s absence) that the matter has been resolved. The Mayor (or Vice Mayor, in the Mayor’s absence) shall then reconvene the City Council meeting and inform the public that service has been restored to the Hybrid Platform.
The City Clerk shall record the time at which the City Council meeting is reconvened.
7. Troubleshooting Hybrid Platform is Not Successful. If the Responsible Person is not successful in restoring service to the Hybrid Platform within one hour of calling the recess, then the City Clerk shall inform the Mayor (or Vice Mayor, in the Mayor’s absence) that the City cannot restore service to the Hybrid Platform. The City Clerk or Responsible person shall provide a description of the Responsible Person’s efforts made to restore service. The Mayor (or Vice Mayor, in the Mayor’s absence) shall subsequently reconvene the City Council meeting. Upon reconvening the meeting, the Mayor (or Vice Mayor, in the Mayor’s absence) shall inform the City Council and the public that services to the Hybrid Platform were unable to be restored and the Mayor (or Vice Mayor, in the Mayor’s absence) may request the City Council make a finding: (i) that good faith efforts to restore the telephonic or internet service have been made in accordance with the City’s Internet Service and Telephonic Service Disruption Policy; and (ii) that the public interest in continuing the meeting outweighs the public interest in remote public access. The Mayor or Vice Mayor, in the Mayor’s absence) shall call for a motion, ask for a second and ask the City Clerk to take a roll call vote. If the motion making the finding is passed, the City Council may continue the City Council meeting. If the City Council does not approve the finding, then the City Council must adjourn the meeting.
8. Documentation. The City Clerk shall enter a brief statement into the meeting minutes including the following: (i) the nature and time of the disruption, (ii) the time recess was called, (iii) the restoration efforts taken, (iv) the time the meeting was reconvened, and (v) any actions regarding continuing the meeting.
9. Certain Meetings Exempt. The requirement set forth in Government Code Section 54953.4 that open and public meetings shall include an opportunity for members of the public to attend the City Council meeting via a two-way remote system (either telephonically or via an audiovisual platform), does not apply to the following meetings: (i) a meeting to attend a judicial or administrative proceeding to which the City is a party; (ii) a meeting to inspect real or personal property provided that the topic of the meeting is limited to items directly related to the real or personal property; (iii) a meeting with elected or appointed officials of the United States or the State of California, solely to discuss a legislative or regulatory issue affecting the city and over which the federal or state officials have jurisdiction; (iv) a meeting in or nearby a facility owned by the City, provided that the topic of the meeting is limited to items directly related to the facility; and (v) a meeting in an emergency situation pursuant to Government Code Section 54956.5.
10. Closed Session During a Recess. During the recess described herein, the City Council may meet in closed session during this period for items listed in the closed session agenda for that meeting.
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