FY 2023-24 Budget Town Hall PresentationMay 18, 2023
Fiscal Year 2023-24
Budget Town Hall
Why is the City in a deficit?
Plan to Resolve
Community Impacts
Other Info
Q&A
Agenda
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Town Hall Objectives
Receive comments and questions
from Public
Gather information and return with
updates for Final Budget Hearing
Annual Budget Cycle
Base Budget
Updates
(December)
New Budget
Proposals
(March)
City Manager
Approves Budget
Proposals (April)
Proposed Budget
(May)
Final Budget
Adoption (June)
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Mid-March 2023: CDTFA verbally
communicates its preliminary
determination to the City
Why is the City Experiencing Budget Reductions?
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Take the Community Budget Survey
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Category
FY 2023-24
Original
Budget1
FY 2023-24
Forecast
(April 13, 2023)
FY 2023-24
Proposed Budget
(May 5, 2023)
Sales Tax 42.1 11.4 11.4
Other Revenues 69.0 69.0 68.9
Total Revenues 111.1 80.4 80.3
Compensation & Benefits 42.1 35.8 35.9
Materials 8.2 4.9 6.3
Contract Services 27.7 25.7 25.0
Cost Allocation 10.4 10.4 10.3
Transfers 12.2 8.1 6.5
Other Expenditures 3.6 1.6 2.3
Total Expenditures 104.2 86.5 86.3
Net Revenues -Expenditures 6.8 (6.1)(6.0)
Proposed Budget Update
($ In Millions)
81This was the City’s budget before the CDTFA informed the City about potential revenue loss. Expenses were determined using the
previous year's base budget, with adjustments by the Consumer Price Index (CPI) when applicable and additions of new requests.
Eliminating new
position requests
and 14 vacant
positions
$6.2M
Reduction in
Materials
$1.8M
Reduction in
Contracts
$2.7M
Reduction in
Transfers to
Other Funds
$5.8M
Reduction in Capital
Outlays, Special
Projects, Cost
Allocation, and
Contingencies
$1.4M
Use of Fund
Balance
$6.0M
Closing the $23.9 Million Deficit
FY 2023-24 Original Budget vs FY 2023-24 Proposed Budget
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Detailed Impacts -Citywide
Reduce
•professional development opportunities from
conference attendance and trainings both
in departments and citywide
•tech reimbursements as Council now uses
City devices
•Mayor’s fund to $10k per year from $15K
•advertising for recruitments
•costs for lunch for outside interview panels
•executive recruitments from two annually to
one
•Community Funding by $8,000 from $32,500
to $24,5001
•printing of Budget, Budget at a Glance and
Annual Comprehensive Financial Report
(ACFR)
•pages in the recreation brochure,
incorporating the 50+ Scene into the
recreation brochure
•social media ad funding
•expansion of current or new offerings for
contracted programs, camps, and classes
•funding for events
•permit review and public inquiry response
time will experience delays
•funds for concrete and pavement
maintenance with an expectation of a
reduction in the City’s Pavement Condition
Index (PCI)
1 In addition,staff is recommending eliminating funding beginning next fiscal year.
Detailed Impacts -Citywide
Reduce
•internal audit budget to $80,000 from
$100,000 in line with budget reduction
targets
•citywide employee events (years of
service and holiday party) from two
events to one
•frequency of janitorial cleaning services
for most City facilities
Detailed Impacts -Citywide
Remove
•cyber security education funding
•parting gift for Poet Laureate
•Art in Unexpected Places
•School Waste Audit
•Grant Programs for Students
in Sustainability Commission
•contingency planning for an outdoor
Public Safety Forum event
•dinners and conferences for commissions
•extra office hours at
appropriate buildings and close teen
center
•budget to cover some fees for festivals1
•free events (Volunteer Fair,Bobateeno,
Movies in the Park,Harvest Day, Corridor
Stroll,Commissioner’s Dinner)
•funding for Shakespeare in the Park,but
work with San Francisco Shakespeare to
continue offering through fundraising
•goose control services at Memorial Park
1 Council may consider further reductions to fee waivers
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Next Steps
May 16, 2023
3rd Quarter
Financial
Report
May 17, 2023
Proposed
Budget Study
Session
May 18, 2023
Community
Budget
Townhall
June 6, 2023
Final Budget
Hearing and
Adoption
Nov 2023
1st Quarter
Financial
Report
•City Website
cupertino.org/budget
•Interactive Financial
Transparency Portal
cupertino.org/opengov
•Resident Tax Calculator and
Budget Forecast Tool
cupertino.org/interactive-
budget-tools
Accessing the Budget
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Questions