City Council and Authorities Concurrent
June 23, 2026

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City Council MeetingDiscussion on the Allocation of Additional Funds in the General Fund Estimated for FY 2025/26, including Convention Center Capital ProjectsItem #2 - RTC #26-663June 23, 2026 •Potential Allocation of Additional Fund Balance•Senior Center Membership Fees and Operations•City Council Feedback and DirectionAgenda2 1 2
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Potential Allocation of Additional Fund Balance3
4FY 2025/26 General Fund Estimated Additional Funding AvailableApril Monthly Financial Report ActionsAdditional Funding$36.7 MExcess Revenues (Sales Tax, net Property Tax, Transient Occupancy Tax, Interest Earnings, Fines/Penalties, Fees for Services, Other Revenue)Proposed Uses$2.1 MExpenditure Needs Allocated as part of Monthly Financial Report (RTC 26-511) $14.6 MAssumed in FY 2026/27 Adopted Budget $20.0 MReserve for Future Uses$36.7 MTotal Proposed Uses• Final reconciliation of FY 2025/26 planned for December 2026; modest amount of additional fund balance expected to be available for allocation at that time 3 4
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3 Potential Uses of Reserve for Future Uses5•$20 M Reserve for Future Uses available for allocation•Potential Uses– Transfer to the Infrastructure Capital Reserve ($7.0 M): brings the reserve to $17.4 M; 5% on General Fund expenditures in FY 2026/27 – Transfer to the Convention Center Capital Fund ($7.6 M): addresses priority needs for FY 2026/27; total needs of $13.7 M identified over next five years– Increase the Capital Projects Reserve ($5.4 M): brings reserve to $17.9 M; funds available to address capital project needs throughout the City•Funds recommended to address capital infrastructure needs given the significant backlog in this area; adheres to the budget principle to allocate one-time funding sources to one-time uses 66FY 2026/27 Convention Center Capital NeedsFY 2026/27Item$2.23 MOutdoor Marquee Project$1.40 MSecurity System Addition $1.11 MReplacement of Electrical Switch Gear$0.66 MFire Safety Updates $0.50 MBoiler Replacement$0.50 MInterior Paint Project - Main Lobby, Glass Pyramids, Great America & Mission Halls $0.45 MExterior Paint Project Docks and Back Area$0.35 MConvention Center Maintenance Equipment Purchases $0.20 MReplacement of Exterior Tile Pavers - Second Floor Terrace $0.13 MFreight Elevator Hydraulic Pump and Power Unit Replacement$0.07 MOther: electric floor box assessment ($17K), LED video wall installation-main lobby ($50K)$7.60 MTotal 5 6
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Senior Center Membership Fees and Operations7
•Free services (no membership required): health and wellness programs, the Health Insurance Counseling & Advocacy Program (HICAP), Senior Adult Legal Assistance (SALA), nutrition services, and other support services•Basic Membership: add billiard/game room, computer lab, table tennis, drop-in games, educational programs, workshops, trainings and seminars•Premium Membership: add fitness center, natatorium, recreation and lap swim, and Senior tennis8Senior Center MembershipsTotalNon-Resident BasicResident -PremiumResident -BasicN/A$37 per year $37 per year$12 per yearRate2,546192,43790# of Enrollees$91,952$703$90,169$1,080Annual Revenue7 8 6/23/2026 Item # 2
5 9Membership BenchmarkingCity Resident RateNon-Resident RatePremium Resident RateSanta Clara$12 $37 $37 Campbell$25 $35 NACupertino$25 $35 NASunnyvale$40 $60 NAMilpitas$15 $35 NALos Gatos$45 $45 NASaratoga$45 $45 NAAverage (All Cities)$30 $42 NAAverage (w/out Santa Clara)$33 $43 NAMountain View$0 $0 NAPalo Alto$0 $0 NALos Altos$0 $0 NAGilroy$0 $0 NAMorgan Hill$0 $0 NASan Jose$0 $0 NAOverall Average (All Cities)$16$22NAOverall Average (w/out Santa Clara)$16$21NASENIOR CENTER ANNUAL MEMBERSHIP FEESSENIOR CENTERS IN SANTA CLARA COUNTY WITH FREE ANNUAL MEMBERSHIP •Senior Center revenues estimated at $356K in FY 2025/26 and expenditures budgeted at $1.87 M, for a cost recovery rate of approx. 19%•National, regional and local lifeguard staffing challenges; aquatics program is not fully staffed•Pre-pandemic: 30 as needed lifeguards year-round and 60 during the summer peak Current staffing: approx. 12-15 as-needed lifeguards year-round and 45 during the peak season•Staff will continue to work to recruit and retain lifeguards, including a review of lifeguard wages, and will evaluate other staffing models, including the addition of full-time lifeguard staff10Senior Center OperationsPre-Pandemic HoursCurrent HoursSr. Center Pool Hours7 am – 1:30 pm, 3 pm – 6:30 pm8 am – 1 pmMonday – Thursday4 pm – 6:30 pmMonday and Wednesday7 am – 1:30 pm, 3 pm – 4:30 pmFriday9 am – 11:30 am8:30 am – 11:30 amSaturday50.5 per week28 per weekTotal Hours9 10 6/23/2026 Item # 2
6 •Senior Center Natatorium HVAC project: an agreement for the HVAC rehabilitation is expected to be brought forward for City Council approval on July 14, 2026•Measure I Bond Funding: provides funding of $9.5 million for the Senior Center Expansion/ Rehabilitation project that will be budgeted in a future bond funding phase/tranche11Senior Center Facility 1212
City Council Feedback and Direction12
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7 •Review and provide input on the potential allocation of the $20.0 million Reserve for Future Uses in the General Fund•Direction to return with budget actions and/or additional follow-up at a future Council meeting13City Council Feedback and Direction 14 City Council MeetingDiscussion on the Allocation of Additional Funds in the General Fund Estimated for FY 2025/26, including Convention Center Capital ProjectsItem #2 - RTC #26-663June 23, 2026 13 14