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Budget 2022-2023 Table of Contents Table of Contents 1 Introduction 7 City Organizational Chart 8 Directory of City Officials 10 Commissions and Committees 11 GFOA Distinguished Budget Presentation Award 12 CSMFO Operating Budget Excellence Award 13 CSMFO Innovation Award 14 Resolutions 15 Budget Message 23 Budget Message 25 Strategic Goals 27 Notable Accomplishments 30 New Initiatives 36 Budget Overview 40 Budget Guide 53 Our Mission 55 Elements of the Budget Document 56 Glossary of Budget Terminology 58 Commonly Used Acronyms 61 Revenues, Expenditures, and Fund Balance Table 63 Community Profile 65 History 67 Community Economic Profile 69 City Profile 71 Education 74 Programs and Applications 76 Community Statistics 79 Community and Recreation Services 81 Things To Do and See 82 Financial Policies 85 Annual Budget Process 87 Structure of City Finances 89 FY 2022-23 Adopted Budget Table of Contents 1 Fund Structure 91 Revenue Policies 95 Expenditure Policies 96 Capital Improvement Policy 97 Information Technology Replacement and Capitalization Policy 98 Pension and Retirement Funding Policy 100 Long Term Financial Stability Policies 101 Committed,Unassigned Fund Balance, and Use of One Time Funds Policy 102 Community Funding Policy 105 Investment Policy 107 Appropriations and Legal Debt Limit Margin 108 Financial Schedules 111 Financial Overview by Fund 112 Flow of Funds Chart(Sankey) 113 General Fund Contribution Schedule 115 Fund Balance Report 119 General Fund Summary 120 General Fund Revenues 121 General Fund Revenue Comparisons with Other Jurisdictions 136 General Fund Expenditures 140 General Fund Transfers 143 General Fund Fund Balance 144 All Funds Summary 146 General Fund Forecast 152 Council and Commissions 177 Department Overview 179 City Council 186 Community Funding 188 Sister Cities 191 Technology,Information&Communications Commission 193 Library Commission 195 Fine Arts Commission 197 Public Safety Commission 199 Bicycle and Pedestrian Commission 201 Parks and Recreation Commission 203 Teen Commission 205 FY 2022-23 Adopted Budget Table of Contents 2 Planning Commission 207 Housing Commission 209 Sustainability Commission 211 Audit Committee 213 Administration 215 Department Overview 217 City Manager 228 Sustainability 231 Office of Communications 234 Multimedia 237 Public Access Support 240 Community Outreach and Neighborhood Watch 242 Office of Emergency Management 244 Economic Development 246 City Clerk 249 Duplicating and Mail Services 251 Elections 253 City Manager Contingency 255 City Attorney 257 Law Enforcement 259 Department Overview 261 Law Enforcement 267 Interoperability Project 269 Innovation and Technology 271 Department Overview 273 Innovation&Technology Administration 285 Video 288 Public Access Support 291 Applications 293 Infrastructure 296 GIS 299 Administrative Services 303 Department Overview 305 Administrative Services Administration 313 Accounting 315 Business Licenses 318 FY 2022-23 Adopted Budget Table of Contents 3 Purchasing 320 Budget 323 Human Resources 326 Retiree Benefits 329 Insurance Administration 331 Workers Compensation Insurance 333 Short Term and Long Term Disability 335 Compensated Absences 337 Parks and Recreation 339 Department Overview 341 Recreation Administration 348 Library Services 351 Administration 353 Cultural Events 355 Facilities 358 Administration 360 Youth Teen Recreation 362 Senior Center 364 Teen Programs 366 Neighborhood Events 368 Park Facilities 370 Administration 373 Blackberry Farm Golf Course 375 Outdoor Recreation 377 Sports Center Operations 379 Community Development 381 Department Overview 383 Community Development Administration 392 Current Planning 395 Mid and Long Term Planning 399 Annexations 402 Economic Development 404 CDBG General Admin 406 CDBG Capital/Housing Projects 408 CDBG Public Service Grants 410 BMR Affordable Housing Fund 412 FY 2022-23 Adopted Budget Table of Contents 4 Human Service Grants 415 General Building 417 Building Plan Review 419 Building Code Enforcement 422 Muni Code Enforcement 425 Code Enforcement 427 Public Works 429 Department Overview 431 Public Works Administration 449 Resource Recovery 452 Non-Point Source 456 Storm Drain Fee 460 General Fund Subsidy 462 Storm Drain Maintenance 464 Plan Review 466 CIP Administration 469 Service Center Administration 471 McClellan Ranch Park 474 Memorial Park 477 BBF Ground Maintenance 480 School Site Maintenance 483 Neighborhood Parks 485 Sport Fields Jollyman,Creekside 488 Civic Center Maintenance 490 Storm Drain Maintenance 492 Sidewalk Curb and Gutter 494 Street Pavement Maintenance 496 Street Sign Marking 499 Street Lighting 501 Equipment Maintenance 504 Environmental Materials 506 Trail Maintenance 508 Overpasses and Medians 510 Street Tree Maintenance 513 Sheriff Work Program 516 BBF Golf Maintenance 518 FY 2022-23 Adopted Budget Table of Contents 5 City Hall Maintenance 520 Library Maintenance 522 Service Center Maintenance 524 Quinlan Community Center Maintenance 527 Senior Center Maintenance 530 McClellan Ranch Maintenance 533 Monta Vista Community Center Maintenance 536 Wilson Park Maintenance 538 Portal Park Maintenance 540 Sports Center Maintenance 542 Creekside Park Maintenance 545 Community Hall Maintenance 547 Teen Center Maintenance 549 Park Bathrooms Maintenance 551 Blackberry Farm Maintenance 553 Franco Traffic Operations Center 555 City Hall Annex 557 Traffic Engineering 559 Traffic Signal Maintenance 562 Safe Routes 2 School 564 Minor Storm Drain Improvement 566 Fixed Assets Acquisition 568 Non-Departmental 571 Department Overview 573 General Fund Transfers Out 577 Tree Fund Transfers Out 579 Debt Service Transfers Out 581 Capital Reserve Transfers Out 583 Facility Lease Debt Service 585 Appendix 587 All Funds Forecast Schedule 589 CIP Schedule 598 Personnel Schedule 599 FY 2022-23 Adopted Budget Table of Contents 6 Introduction FY 2022-23 Adopted Budget Introduction 7 This page intentionally left blank. FY 2022-23 Adopted Budget Introduction 8 N O N City Organizational Chart W a O dCiti ze n s of CCupertino Cd Q.. UQ rt City Council Comm:ittee-sndComs City Attorney E:1 Com m u n ity O utrZ�h Economic Office of sustainahility Office of Development mergencyServic Wtch Programs andNarhood City Clerk Communications Watch F—I rt O ¢, Law Enforcement Administrative Community Parksand Innovation and n Santa'IaraC.un Services' p PuhlicWorks gy Sheriffs-Contrail} Development Recreation Technology O Finance Capital (Accounting, Building Re creation and Development Improvement Infrastructure GIs iu rchasing,Budget Education Services program Human Resources Planning Sports,Safety,and Environmental Transportation Multimedia Applications utdoorRecreati Programs Businessand Code Enforcement Community Service Center Services Housing Facilities and Fleet Trees and ROW Streets Grounds *The City Treasurer is the Director of Administrative Services Directory of City Officials City Council Darcy Paul Liang Chao Mayor Vice Mayor l a� Kitty Moore Hung Wei Jon Willey Council Member Council Member Council Member Directory of City Officials Jim Throop—City Manager Dianne Thompson—Assistant City Manager Christopher Jensen—City Attorney Kristine Alfaro—Director of Administrative Services Ben Fu—Director of Community Development Matt Morley—Director of Public Works Joanne Magrini—Director of Parks and Recreation Bill Mitchell—Chief Technology Officer FY 2022-23 Adopted Budget Introduction 10 Commissions and Committees AUDIT COMMITTEE FINE ARTS COMMISSION PUBLIC SAFETY COMMISSION Angela Chen Carol Maa Eric Shan Yan(Sophie)Song Janki Chokshi Hymanand Nellore Darcy Paul Satish Tare Lakshminarasimha Ankireddipally Kitty Moore Esha Rao Tiffany Wang Laura Hammer Sudha Kasamsetty Bobby Toda BICYCLE PEDESTRIAN HOUSING COMMISSION SUSTAINABILITY COMMISSION COMMISSION Govind Tatachari Gerhard Eschelbeck Tessa Parish Anna Weber Grace John Sue Bose Sonali Padgaonkar Erik Lindskog Connie Cunningham Meera Ramanathan Jack Carter Angan Das Steve Poon Ilango Ganga LEGISLATIVE REVIEW Vignesh Swaminathan DESIGN REVIEW COMMITTEE COMMITTEE TEEN COMMISSION Muni Madhdhipatla Liang Chao Rachael Ding Sanjiv Kapil Kitty Moore Geethikaa Tarra R Wang LIBRARY COMMISSION Andrew QinMaple Leung ENVIRONMENTAL REVIEW Archana Panda Zehra Naqvi COMMITTEE Liyan Zhao Dhruti Halambi Sheela Sreekanth Elspeth Luu Kitty Moore Qin Pan Alex Zhang Matt Morley Rahul Vasanth Adhya Kasamsetty Ben Fu Dianne Thompson PARKS AND RECREATION TECHNOLOGY,INFORMATION Steven Scharf COMMISSION &COMMUNICATIONS Darcy Paul Carol Stanek COMMISSION Muni Madhdhipatla Xiangchen"Minna"Xu Eliza Du Gopal Kumarappan Mukesh Garg ECONOMIC DEVELOPMENT Seema Swamy Naidu Bollineni COMMITTEE Sashikala Begur Rajaram Soundararajan Darcy Paul PLANNING COMMISSION Prabir Mohanty Kevin McClelland Hung Wei R"Ray"Wang Mike Rohde Vikram Saxena Rod Diridon Jr. Sanjiv Kapil Alan Takahashi Muni Madhdhipatla Roslyn Donald Steven Scharf Angela Tsui Ben Fu Anjali Kausar Roger Lee FY 2022-23 Adopted Budget Introduction 11 GFOA Distinguished Budget Presentation Award GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Cupertino California For the Fiscal Year Beginning July 01,2021 Executive Director FY 2022-23 Adopted Budget Introduction 12 CSMFO Operating Budget Excellence Award California Society of Munic!'PaCFinance Officers Certificate ofrlward Operating Budget Excellence Award Fiscal Year 2021-2022 Presented to the City of Cupertino For meeting the criteria established to achieve the CSMFO Excellence Award in Budgeting. February 28,2022 14-� w Marcus Pimentel Michael Marano,Chair CSMFO President RecagnitiorrCommiltee Dedicated Excellence in Municipal Financial Reporting WIF FY 2022-23 Adopted Budget Introduction 13 CSMFO Innovation Award CSMFO awarded the City of Cupertino the 2022 Innovation Award for the City's Resident Tax Calculator and Budget Forecast Tool.This is the first time that the City of Cupertino has received this award and highlights the City's commitment to innovation despite unique challenges presented by the pandemic over the past year. They are available at cupertino.org/interactive-budget-tools. FY 2022-23 Adopted Budget Introduction 14 Resolutions RESOLUTION NO.22-064 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING AN OPERATING BUDGET FOR FISCAL YEAR 2022-23 BY RATIFYING THE ADEQUACY OF ESTIMATED REVENUES AND FUND BALANCES IN EACH FUND TO COVER APPROPRIATED MONIES,APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS,AND SETTING FORTH CONDITIONS OF ADMINISTERING SAID BUDGET WHEREAS,the orderly administration of municipal government is dependent on the establishment of a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies;and WHEREAS, the extent of any project or program and the degree of its accomplishment, as well as the efficiency of performing assigned duties and responsibilities, is likewise dependent on the monies made available for that purpose; and WHEREAS,the City Manager has submitted his estimates of anticipated revenues and fund balances, has determined that estimated revenues and fund balances are adequate to cover appropriations, and has recommended the allocation of monies for specified program activities; NOW, THEREFORE,BE IT RESOLVED that the City Council does hereby adopt the following sections as a part of its fiscal policy: Section 1. The estimates of available fund balances and anticipated resources to be received in each of the several funds during Fiscal Year 2022-23,as submitted by the City Manager in his proposed budget and amended during the budget study sessions, are sufficient to cover appropriations. Section 2. There is appropriated from each of the several funds the sum of money set forth as expenditures for the funds named in the Fiscal Year 2022-23 Proposed Budget Financial Overview by Fund(Exhibit A),as amended during the budget sessions, and stated for the purposes as expressed and estimated for each department. Section 3. The City Manager is hereby authorized to administer and transfer appropriations between Budget Accounts within the Operating Budget when in his opinion such transfers become necessary for administrative purposes. FY 2022-23 Adopted Budget Introduction 15 Resolution No.22-064 Page 2 Section 4. The Director of Administrative Services shall prepare and submit to City Council quarterly a revised estimate of Operating Revenues. Section 5. The Director of Administrative Services is hereby authorized to continue appropriations for operating expenditures that are encumbered or scheduled to be encumbered at year end. PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 91"day of June,2022,by the following vote: Vote Members of the City Council AYES: Paul,Chao,Wei,Willey NOES: Moore ABSENT: None ABSTAIN: None SIGNED: Darcy Pau ayo• Date City of Cupertino ATTEST: 7/11/22 Kirsten S uarcia,City Clerk Date FY 2022-23 Adopted Budget Introduction 16 Resolution No.22-064 Page 3 Exhibit A FISCAL YEAR 2022-23 ADOPTED BUDGET FINANCIAL OVERVIEW BY FUND 2022-23 Adopted Budget H...... Gencral Fund Special Revenue Debt Service Capital Project Enterprise Internal Service All Fund, Fund Fund Foods Funds Foods Sales Tax 31,944,089 - - - - - 31,944,089 Property Tax 30,039,574 - - - - - 30,039,574 Transient Oavpancy 5,000,000 - - - - - 51000,000 Utility Tax 2,955,404 - - - - - 2,955,404 Franchise Fees 3,230,101 - - - - - 3,230,101 Other Taxes 1,787,691 8,203,431 - - - - 9,991,122 Licenses&Permits 3,541,012 - - - - - 3,541,012 Use of Money&Property 1,277,013 5,548 - - 700,000 - 1,982,561 Intergovernmental 1,434,491 3,500,224 - - 14,000 - 4,948,715 Charges for Services 11,528,436 1,512,209 - - 5,058,792 4,053,851 22,153,288 Fines&Forfeitures 427,000 68,669 - - - - 495,669 Miscellaneous 1,160,437 - - - 10,000 - 1,170,437 Transfers In/Other Financin Uses 336,140 3,025,000 2,675,8W 2,500,000 376,000 3,855,645 12,768,585 2022-23 Adopted Budget Debt Fund Fund Funds Funds Foods Employee Compensation 24,295,660 2,050,572 - - 1,786,450 1,803,287 29,935,969 Employee Benefits 11,440,636 1,037,760 - - 605,466 2,190,096 15,273,958 Materials 7,219,073 1,001,596 - - 500,003 1,418,575 10,139,247 Contract Services 25,026,032 1,152,665 - 175,000 4,804,188 1,798,390 32,956,275 Cast Allocation 10,385,%1 1,191,567 - - 789,939 62,042 12,429,509 Capital Outlays - 1,038,000 - - - - 1,038,000 Special Projects 3,657,378 3,742,268 - - 183,553 541,100 8,124,299 Contingencies 451,739 29,681 - - 132526 80,425 694,371 Transfers Out 11,996,300 - - - - - 11,996,300 Debt Service/Other Uses 695,000 2,675,800 177,606 968,791 4,517,197 GB IN FUND➢AZANCEf$ (506,391)$ 5,070,972 $ - $ 2,325,000 $ (2,820,939)$ (953,210)$ 1,H3,432 NETPOSMON FY 2022-23 Adopted Budget Introduction 17 RESOLUTION NO.22-065 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING A CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2022-23 BY RATIFYING THE ADEQUACY OF ESTIMATED REVENUES AND FUND BALANCES IN EACH FUND TO COVER APPROPRIATED MONIES,APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS,AND SETTING FORTH CONDITIONS OF ADMINISTERING SAID BUDGET WHEREAS,the orderly administration of municipal government is dependent on the establishment of a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies;and WHEREAS, the extent of any project or program and the degree of its accomplishment, as well as the efficiency of performing assigned duties and responsibilities, is likewise dependent on the monies made available for that purpose; and WHEREAS, the City has independently studied the Proposed Capital Improvement Program ("CIP") and has determined that the CIP is exempt from environmental review pursuant to the exemption in 14 California Code of Regulations §15061(b) (3)and§15378,in that it can be seen with certainty that there is no possibility that this CIP budget action will have a significant effect on the environment due to the approval of the budget, and does not involve approval of any specific project that may have a significant effect on the environment.Each project of the Proposed CIP projects will be evaluated for the application of the California Environmental Quality Act ("CEQA") to it and, as applicable, each project will conduct the appropriate level of environmental analysis. WHEREAS, the City Council, using its independent judgment, before taking action on this Resolution,determines that the CIP is exempt from CEQA as stated above; NOW,THEREFORE,BE IT RESOLVED that the City Council does hereby adopt the following sections as a part of its fiscal policy: Section 1. The estimates of available fund balances and anticipated resources to be received in each of the several funds during Fiscal Year 2022-23,as submitted by the City Manager in the proposed budget and amended during the budget study sessions, are sufficient to cover appropriations. FY 2022-23 Adopted Budget Introduction 18 Resolution No.22-065 Page 2 Section 2. The Director of Public Works shall prepare and submit to City Council quarterly a revised estimate of Capital Improvement Program projects. Section 3. The Director of Administrative Services is hereby authorized to continue appropriations for operating expenditures that are encumbered or scheduled to be encumbered at year end. PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 911 day of June,2022,by the following vote: Vote Members of the City Council AYES: Paul,Chao,Wei,Willey NOES: Moore ABSENT: None ABSTAIN: None SIGNED: 7//v/Z-7-r Darcy Paul, ayor Date Cityof Cu ertino ATTEST: a � 7/11/22 Kirsten S uarcia,City Clerk Date FY 2022-23 Adopted Budget Introduction 19 Resolution No.22-065 Page 3 Exhibit A FISCAL YEAR 2022-23 ADOPTED BUDGET FINANCIAL OVERVIEW BY FUND 1122-"Adopted Budget General Fund Special fitevenue Debt Service Capital Project Enterprise Internal Service Ali Fun& Fund Fund Funds Funds F—da Sales Tax - - - - - -Property Tax - - - - - - - Transient Occupancy - - - - - -Utility Tax - - - - - - - Franchise Fees - - - - - - - OtherTaxes - - - - - - - Licenses&Permits - - - - -Use of Money&Property - - - - - Intergovernmental - - - - - - - Charges for Services - - - - - - - Fines&Forfeitures - - - - - - Miscellaneous - - - - - - - TransfersIn/OtherFinancio Uses 2:5,600 23,600 Apincpd.fi..Categories General Food Special Revenue Debt Service Capital Project Enterprise Internal SeTvke All Fund, Froad Fund Funds F—dk Funds Employee Compensation - - - - - - - Employee Benefits - - - - - - - Materials - - - - - - - Conk ractServices - - - 90,000 - - 90,000 Cost Allocation - - - - - - - Capital Outlays - - - 3,345,000 23,600 - 3,368,600 Special Projects - - - - - - Contingencies - - - - - - - Transfers Out - - - 23,600 - - 23,600 Debt Service/Other Uses CHANGF 7N Pl%M3 PAg t!t1CTi` het N' ,trlON$ - S - $ - $ (3,458,600)$ - $ - $ t3;y58,511 FY 2022-23 Adopted Budget Introduction 20 RESOLUTION NO.22-066 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ESTABLISHING AND ADOPTING THE APPROPRIATION LIMIT IN THE AMOUNT OF$122,765,522 FOR FISCAL YEAR 2022-23 WHEREAS, the State of California has adopted legislation requiring local jurisdictions to calculate their appropriation limits in complying with Article XIII B of the State Constitution;and WHEREAS, pursuant to Proposition 111, passed by the voters of California on June 5,1990,said limits are determined by an adjustment formula based upon change in population,combined with either the change in inflation(California per capita income) or the change in the local assessment roll due to local nonresidential construction;and WHEREAS,the local governing body is required to set an appropriation limit each year by adoption of a resolution;and WHEREAS,the City of Cupertino's population percentage change over the prior year is-0.46%,and the California per capita personal income change is 7.55%;and WHEREAS, in computing the 2022-23 limit based upon the adjustment factors provided pursuant to Proposition 111, the City Council has elected to use the county population percentage change along with the California per capita income change,but the Council expressly reserves the right to use the non-residential assessed valuation percentage change when the figure is available. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby approves a 2022-23 fiscal appropriation limit of$122,765,522,based on Proposition 111 guidelines allowing for use of the county population percentage change along with the California Per Capita Personal Income change to adjust base year appropriations. BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby reserves the right to use the non-residential assessed valuation percentage change when the figure is available. PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 91h day of June,2022,by the following vote: FY 2022-23 Adopted Budget Introduction 21 Resolution No.22-066 Page 2 Vote Members of the City Council AYES: Paul,Chao,Wei,Willey NOES: Moore ABSENT: None ABSTAIN: None SIGNED: 7-2- Darcy Paul, ayor Date City of Cupertino ATTEST: 7/11/22 Kirsten Squarcia,City Clerk Date FY 2022-23 Adopted Budget Introduction 22 Budget Message FY 2022-23 Adopted Budget Budget Message 23 This page intentionally left blank. FY 2022-23 Adopted Budget Budget Message 24 Budget Message June 9,2022 To the Residents of Cupertino,Honorable Mayor,and Members of the City Council: Albert Einstein said, "Life is like riding a bicycle,to keep your balance,you must keep moving." As the City emerges from the COVID-19 pandemic, we are defining our future and the opportunities and challenges the future presents. From how we offer services to the development of our financial and human resources and the needs of residents, the City is not in the same place as it was pre-pandemic. In Fiscal Year (FY)2021-2022,we saw expenditures increase after experiencing a decrease across various categories due to the pandemic. We saw transient occupancy taxes, the hardest hit of our revenue sources,rebound.We transitioned from online-only to hybrid service models and saw the revitalization of in-person events. A wave of retirements has impacted the City as the baby boomer generation leaves the workforce and the Great Resignation(a pandemic by-product of mass resignations as people consider different career paths).As a result, we have seen a significant increase in retirees and turnover in FY 2020-2021, with normalization in FY 2021- 2022. However, our staff has been resilient in overcoming challenges and implementing new and innovative solutions while managing new and limited staffing and continuing vacancies. The positive news is that the City is on a solid financial footing to weather any of the challenges ahead. The City is on solid financial footing in FY 2022-23 with a balanced budget. The budget is balanced with ongoing revenues meeting or exceeding ongoing expenditures, and fund balance is being used to fund one- time projects. The Adopted Budget is $130,587,325 and is funded by $130,244,157 in revenue. The General Fund, the City's largest tax-supported fund, is budgeted at $95,167,779 and is funded by $94,661,388 in revenue. This budget reflects the invaluable input provided by your Council, Department Heads, and other City stakeholders. The City has historically been fiscally prudent in budgeting both expenditures and revenues.This has been part of a deliberate strategy to build up fund balance and to provide the City with time to mitigate the impacts of the pandemic. The City continues to have a strong revenue tax base, enabling us to provide public safety and general government services to support our community. However, since the City has limited resources, we must balance the community's many needs so that the City can continue to remain in a strong financial position. For Cupertino,the top three revenue sources are Sales,Property,and Transient Occupancy taxes(TOT,or Hotel Taxes).Sales and property taxes continue to do well post-pandemic,and we have seen TOT rebound to around 37%of pre-pandemic levels (up over 57%since shelter-in-place restrictions were implemented).While sales tax was anticipated to decrease during the pandemic,it increased significantly due to positive impacts from online sales. We continue to closely monitor the situation as we believe this was a one-time occurrence due to the pandemic. Overall, most sales tax sources have recovered to pre-pandemic levels. The City is currently in the midst of a sales tax audit by the California Department of Tax and Fee Administration(CDTFA).The impact of this audit is unknown, but it has the potential to significantly impact the City's sales tax revenue. Once more information is known, staff will provide updates to City Council. The Adopted Budget considers a potential reduction in sales tax revenue,as the City takes a conservative stance on financial matters. FY 2022-23 Adopted Budget Budget Message 25 Additionally, a major impact of the pandemic has been on the City's ability to retain and recruit employees.As mentioned previously, the City experienced a spike in retirements and resignations, compounded by challenges in recruiting. For certain positions, we had to conduct multiple recruitments before hiring a successful candidate or extend recruitment timelines. As a result, the time required to fill vacancies after employees leave city service has grown. As the City transitions from a small to a mid-size City, the need for additional positions will continue as service expectations expand. This year's budget recommends funding 14 new positions in various departments. We are also forecasting the need for an additional eight positions in the near future, once the impact of the sales tax audit is known. To date, the City has been successful in mitigating these impacts and has been able to complete projects on time. However, if current staffing trends continue, we may experience major impacts on service delivery to our residents. A growing area of concern for the City is our aging infrastructure. The need to address our infrastructure will significantly impact the City's budget. The City will need to decide how and when to update, remodel, or rebuild existing infrastructure while balancing safety concerns with new infrastructure projects and ongoing operations.Infrastructure needs are discussed in the City's Capital Improvement Program. As the City moves forward, we will begin to strategically use reserves to strengthen further the City's fiscal position in the short and long-term. As described in the budget-balancing strategies in the financial schedules portion of the budget, we are recommending the use of the Section 115 Other Post-Employment Benefits (OPEB) Trust to fund the costs of retiree health benefits. In addition, we continue to monitor our Section 115 Pension Trust (a specialized fund that may only be used to pay for retirement costs) and may recommend the use of this fund in the future for pension-related costs. Lastly, City Council approved mid-year adjustments of $27 million in General Fund unassigned fund balance as follows: $10 million transfer to Capital Reserve . $5 million increase to General Fund Economic Uncertainty Reserve $10 million contribution to a new General Fund Capital Projects Reserve $2 million contribution to Section 115 Pension Trust Despite challenges and uncertainty in the State, Nation, and Globally, the City's fiscal outlook remains strong. Our City has a strong financial foundation to build upon for the successful future of Cupertino. And it will be more incredible than any of us can possibly imagine. FY 2022-23 Adopted Budget Budget Message 26 Strategic Goals On February 18, 2020, City Council adopted the following goals to provide a framework for the City's priorities and City Work Program: Public Engagement and Transparency Creating and maintaining key conversations and interactions with the Cupertino Community. Sustainability and Fiscal Strategy Continuing Cupertino's commitment to building a sustainable and resilient community for future generations. Housing Contributing meaningfully and in a balanced manner to the housing inventory in support of our community needs, including affordable housing (from extremely low-income to moderate-income level housing) and addressing homelessness. Transportation Providing access to an efficient,safe multi-modal transportation system for our community, and advocating for effective,equitable mass transit in the greater region. . Improving Traffic Flow and Alleviating Congestion Quality of Life Furthering the health and well-being of all Cupertino community members. . Air Quality . Public Safety • Recreation . Access to Goods and Services While these are intended as multi-year goals,they are reviewed annually by the City Council.The Council may adopt the same goals or revised goals as the Council sees fit. The strategic planning process and City Council goal-setting are paramount as they drive the City's annual Work Program.The City has created an online dashboard to show the status and performance of the City Work Program in real-time (gis.Cupertino.org/webmap/CityWorkProgram/). City Work Program projects with budgetary impacts can be found in the respective program budgets under Special Projects.The budgets of some City Work Program projects from previous fiscal years may be carried forward into FY 2022-23. FY 2022-23 Adopted Budget Budget Message 27 FY 2022-23 City Work Program Housing Homeless Jobs Program Create a jobs program for up to 2 individuals for 6 months. Community 200,000 Development Housing Housing Programs for De Anza Continue participation in De Anza College's student housing Community 25,000 College Students assistance program. Development Public Cupertino Store Implementation Implement the Cupertino Store plan.This would include Administration 145,000 Engagement and identifying a location if one is not identified in fiscal year 2021- Transparency 2022.With some help from the Fine Arts Commission for some of the items with art designed by community members,items would be designed and selected for the store,for sale to the public,and also available for exchange purposes for formal delegations to and from the City,with an at-cost charge structure for the latter purposes.For the 2022-2023 FY,the Cupertino store will be online only.Staff will present a plan to the Council on item selection and art design selection. Public Cybersecurity Public Education Provide education on cybersecurity to City residents,guests Innovation& 7,500 Engagement and and businesses. Technology Transparency Public Hybrid Meeting for City Council Develop policy and infrastrcture to allow hybrid meetings for Innovation& 15,000 Engagement and and Commission Meetings both City Council,Commission meetings and future Technology Transparency community workshops.This allows seniors,caretakers,parents with young children to participate and speak. Public Integrated Plan for Community Create Integrated Plan and Database for Community Administration 30,000 Engagement and Engagement Engagement so that we do no start from scratch with each Transparency project.The plan should include all possible outreach channels, traditional media,newspaper,including Chinese and other languages,City Channel,the Scene,social media and influencers.community leaders,community groups,HOAs, block leader programs,Chamber and other business groups etc. Explore the possibility for Library and Community Engagement Commission so that the Library Commission could help review and update this plan as needed. Public Intergenerational Engagement Many seniors have a wealth of lifelong experiences.Many teens Parks and 20,000 Engagement and do not have grandparents nearby.Activities cross generations Recreation Transparency could benefit both.Schools could engage seniors in the community to attend school open house or serve as volunteers, such as reading partners Public Senior Strategy Address the needs of seniors in collaboration with the City Parks and 35,000 Engagement and Council and Commissions.Needs to address include technology Recreation Transparency resources,housing,food supply,transportation,and mental and physical health and wellbeing.Administer a second in-depth senior survey to learn about senior needs(including aging in place and elder financial abuse). Public Student Internship Program Implement a trial student summer internship program with the Administrative 15,000 Engagement and City of Cupertino.Initial year will be on a limited basis.If Services Transparency approved,applications will be sought for one-,two-or three- week internships during the summer,with applications to be released in mid-July.Internships will be project-focused,with participating City departments asked to identify a specific project or projects that a student intern can undertake.The internships will have a common start date,and include an orientation,group activities and exit interviews.Alternatively,if the time and resources do not permit the City to run a trial program in the upcoming summer of the fiscal year(i.e., Summer 2022),Council may form a subcommittee to share practices for student internships,and to bring a report back to Council at the end of Summer 2022 with recommendations as part of the initiation of a student internship program in Summer 2023. Public Community Engagement on Educate and encourage resident use of alternative Administration 12,000 Engagement and Alternative Transporation and transportation to the Library.Install signage to point to Transparency/ Parking overflow parking at Eaton Elementary school. Transportation Quality of Life Blackberry Farm Golf Course Determine short-term and long-term improvements to the golf Public Works - Needs Assessment' course and amenities. Quality of Life Artwork at the Collaborate with groups such as the Fine Arts Commission and Parks and 10,000 Library/Exhibits/Poetry and Art Cupertino Poet Laureate to display artwork,including exhibits, Recreation Day at the Library.Exhibits could potentially be around the library and in the new programming space.Examples could be potential galleries,a poetry/art show,cultural documents and artifacts,or other fascinating exhibits. FY 2022-23 Adopted Budget Budget Message 28 Quality of Life License Plate Readers 1.Research Automated License Plate Reader(ALPR)systems 2. Innovation& 60,000 Research state laws,privacy concerns,and regulations related Technology to ALPR 3.Compare fixed location,mobile(in-car),and portable (trailer ALPRs)4.Identify outreach and engagement strategies used by other jurisdictions using ALPR 5.Assess locations for fixed ALPR in Cupertino 6.Estimate ALPR costs for installation,monitoring,and maintenance(Consider:Cameras, LPR,Safe-Exchange Zone,Pilot cameras in a residential areas, and commercial developments Research best practices from other similar jurisdictions)7.In partnership with the County Sheriff,install ALPR devices for the automated detection of license plates.This data will only be for official law enforcement purposes,including identifying stolen or wanted vehicles,stolen license plates and missing persons.It may also be used to gather information related to active warrants,homeland security,electronic surveillance,suspect interdiction,and stolen property recovery. Quality of Life Safe Gun Storage Ordinance Research best practices for safe gun storage from neighboring Administration 12,000 jurisdictions.Adopt safe gun storage ordinance to increase public safety for residents. Sustainability and Analyze Potential Revenue Analyze potential revenue measures,such as transient Administrative 50,000 Fiscal Strategy Measures occupancy tax,sales tax,property tax,and utility users tax,to Services address possible future financing challenges. Sustainability and Electrification Study Conduct public outreach,policy research,and coordinate with Administration 50,000 Fiscal Strategy regional efforts to develop policy options for electrification of Cupertino's buildings and transportation systems. Sustainability and Study Session on City-Owned Inventory and assess existing facilities and prepare a long-range Public Works - Fiscal Strategy PropertieS2 planning report for three City-owned properties(Blesch,Byrne, and Stocklemeir) Transportation Bicycle Facilities Increase the inventory of bicycle facilities and amenities,such Public Works 50,000 as bike racks,citywide. Transportation Lawson Middle School Bikeway Retain consultant to prepare feasibility study which will Public Works 40,000 evaluate alternatives that provide a separated bike path for students riding to Lawson Middle School.Feasibility cost will be $40,000. Transportation Vision Zero Develop a Vision Zero Policy and Action Plan and hire a Public Works 80,000 consultant.The Plan will guide policies and programs with the goal of eliminating fatalities on Cupertino roadways.Special emphasis will be placed on routes to,and streets surrounding. Cupertino schools. IBaackberry Farm Golf Course Needs Assessment ($23,600) is funded in the Capital Improvement Program budget under Blackberry Farm Golf Course/Alternative Use Study. The $23,600 budgeted in FY 2022-23 is in addition to the$76,400 budgeted in FY 2021-22. 2Study Session on City-Owned Properties ($90,000) is funded in the Capital Improvement Program budget under Stocklmeier,Byrne,and Blesch:Inspection Reports and Analysis. FY 2022-23 Adopted Budget Budget Message 29 Notable Accomplishments Administration Department ADA Webinar— In November 2021, Economic Development partnered with the Silicon Valley Economic Development Alliance (SVEDA) to host a webinar on Americans with Disabilities Act (ADA) laws and compliance for small businesses. The webinar equipped small businesses on how to comply with ADA laws to avoid costly litigation and penalties, drawing 150 attendees. Close to two dozen Cupertino businesses were able to hear directly from experts,get their questions answered,and connect with City employees directly. Small Business Saturday— This event empowered local businesses, connected them with the community, and attracted more visitors to the shopping center. In addition to creating a webpage, a first-ever partnership between the City,Cupertino Library,and the Chamber of Commerce was formed.Representatives from partner organizations met with local businesses and greeted visitors.Community members were able to learn about the benefits of supporting small businesses,local promotions, checking out books,opening a new library card, and the City's Climate Action Plan. COVID-19 Response—Over the past 12 months,the Office of Emergency Management responded to the COVID- 19 pandemic,guiding City departments through two years of navigating the evolving best practices and health orders. 2021 Virtual Earth Day—The virtual festival included an entire day of live and recorded content which can be viewed anytime on Cupertino's YouTube channel. The live stream was hosted by volunteers from Cupertino's youth environmental organizations. A Tree Scavenger Hunt and litter clean-up event were created to keep the community engaged in a socially distanced way.The live-streamed festival generated 1,500 impressions online, including viewers as far away as India, and the recordings have hundreds of views on the City's YouTube channel. Drought Response Coordination— With a combination of strategies and regular feedback based on the consumption data, the City achieved a 15% reduction in municipal water use during the summer of 2021. As the region expects a third year of drought,these measures will continue to be utilized. Climate Action Plan 2.0— To update the City Climate Action Plan, a multi-pronged engagement strategy was utilized to include Cupertino residents, businesses, organizations, and stakeholders. The objectives was to gather community perspectives,create a framework for community action,educate,empower,and energize the community, and strengthen relationships within the City. Six virtual events were held throughout 2021, two surveys were conducted, two City Council study sessions, and the topic was discussed at each Sustainability Commission meeting throughout the year. 135 people participated in workshops, 161 responses were collected from surveys, and several hundred people were directed to the project website from in-person community tabling events such as at farmer's markets and the Rotary's Fall Festival. All the public feedback is available to review at cupertino.org/ClimateAction Administrative Services Department Virtual Benefits Fair— Enhanced process with City staff and vendors as well as continued with an online open enrollment process. HR Hub and Training Management Application — Continued collaboration with I&T to enhance and develop the City's intranet, including digitizing forms, enhancing employee accessibility to HR tools and resources, and centralizing and maintaining HR information(MOUs,Policies&Procedures,COVID Information,etc.) FY 2022-23 Adopted Budget Budget Message 30 BEST Training -Transitioned to online registration and training platform. Offered a semester-based program with a variety of training programs to assist employees with their professional growth,health, and wellness as well as retirement and financial planning. COVID-19-Continued to provide employee support across all City Departments through the COVID website, City Town Hall, and Department meetings. Researched, analyzed, and implemented Federal, State, and local rules and regulations such as leave programs,contract tracing, creation of new and revised OSHA policies, and related trainings. Diversity, Equity, and Inclusion (DEI)-Offered staff 5 DEI training classes as part of the City's BEST program to increase cultural awareness,knowledge,and communication. Recruitment and Retention -Responded to a large increase in separations from previous FY20 (12) to FY21 (30) which translates to a FY21 16.3% turnover rate from a FY20 of 6.4%. As a result, this increased the number of recruitments conducted from FY20(19)to FY21 (43). Benefit Administration - Processed triple the number of employee separations due to a large increase in employee onboarding and offboarding. From 7/1/2019 - 6/30/2020, there were 12 Full Time (FT) employee separations and 19 FT new hires. From 7/1/2020 - 6/30/2021, there were 32 FT (includes 2 councilmembers) employee separations and 18(includes 2 councilmembers)FT new hires. Internal Audit - The City's internal auditor, Moss Adams, developed an internal audit work plan to guide activities for FY 2021-22. The Audit Committee and City Council approved the FY 2021-22 internal audit work plan,which included the following projects: . Procurement Operational Review • Policy Inventory and Plan • Capital Program Effectiveness Study • Fraud,Waste,and Abuse Program The projects are expected to be completed by the end of FY 2021-22. CSMFO Innovation Award- CSMFO awarded the City of Cupertino the 2022 Innovation Award for the City's Resident Tax Calculator and Budget Forecast Tool. This is the first time that the City of Cupertino has received this award and highlights the City's commitment to innovation despite unique challenges presented by the pandemic over the past year.They are available at cupertino.org/interactive-budget-tools Community Development Department Update the Housing Element of the General Plan and concurrent rezoning -Ongoing updates to the Housing Element goals, policies, and strategies to address housing needs, constraints, both governmental and non- governmental, and identify Priority Housing sites to accommodate the city's Regional Housing Needs Allocation, as required by state law. Concurrent rezoning of the Priority Housing sites to ensure that sites are appropriately rezoned to allow for planned growth/capacity. Homeless Jobs Program-In partnership with the West Valley Community Services,created a pilot Homeless Jobs Program to assist two individuals with obtaining full-time employment. In addition to employment, they received job training,housing support,financial coaching,and case management services. City Plan to End Homelessness- Drafted the City Plan to End Homelessness to address the needs of the unhoused residents of Cupertino as identified in the Santa Clara County Community Plan to End Homelessness. The City Plan will help direct the decisions that will be made about funding, program, and needs.Over 150 people attended the City's Community Workshop in support of this effort. FY 2022-23 Adopted Budget Budget Message 31 ProjectDox Expansion and Upgrade— Improved software (for both staff and customers) in the way permits are processed. Additionally, ProjectDox will be migrated to a cloud-based application allowing for enhanced business continuity and disaster recovery. Innovation & Technology Department IT Strategic Plan— Completion of the three-year Strategic Plan (Plan). The Plan outlines and prioritizes I&T projects and associated costs for the next three years resulting in enhanced efficiencies and increased transparency in each work product. Adaptive Traffic Signaling—Completed the Adaptive Traffic Signaling (ATS) project. ATS adjusts the timing of the City's green light cycle to match current traffic conditions.Mitigating traffic congestion is a high priority for the City and ATS will measure how effective this technology is in moving Cupertino traffic. Multimodal Traffic technologies — Provided additional tools to Planning and Public Works to better measure impacts and plan for future projects. In partnership with Public Works, IT procured technology(s), selected locations,implemented and tested multimodal count sensors. Multi-Factor Authentication —Implemented multi-factor authentication (MFA) for all City staff to enhance security. This ensures that the City follows industry best practices and reduces security exposure risk in an ever-evolving online workspace. Interactive Projector System—Utilized augmented reality (AR) to provide public engagement with visitors. This allows for enhanced consumption of provided media notices as well as interactive AR engagement. Wireless Network+Internet Park Expansion— Expanded WiFi network services to selected parks (Wilson, Portal, and Creekside), including connectivity at those sites to allow staff access to City network resources for future services and events. Enhancement of services at current facilities with a more reliable fiber-optic network connection. This includes connections from City Hall to Monte Vista Recreation Center & Park, McClellan Ranch,Blackberry Farm,and the golf course at Blackberry Farm. Developed Policies and Procedures —Developed Cybersecurity Incident Response, IT Governance, Enterprise Architecture, and Data Classification and Standards policies and procedures to protect the integrity of the City's information and databases. Telematics—Implemented the Telematics solution, GeoTab, for all City Vehicles-Enabled the IT Department& Fleet Division to analyze and evaluate: 1) vehicle utilization, 2) vehicle performance data, 3) driver safety and behaviors and 4)fuel efficiency to recommend cost-saving,operational efficiency,and safety measures. Laserfiche Roadmap—Implemented the 2nd-year out of the three-year Enterprise Content Management roadmap. Completed the file plan and restructuring for all Public Work Divisions, Planning, Housing, & Code Enforcement, Parks and Recreation, Sustainability, and Human Resources. Ongoing scanning of historic records,as well as building out the internal web-link portal and Division specific training. Business Process Automation—Continued conversion of existing paper/static forms to digital/dynamic processes. Workflow and business method was added to the digital forms to provide a true paperless environment. Digitized over 25 workflows. Disaster Response—Developed and tested the Quick Capture app,Building Damage Assessment survey, and the Situational Awareness app along with the corresponding dashboards. FY 2022-23 Adopted Budget Budget Message 32 CodeHub Implementation— Created a modern-day zoning code all in one platform which seamlessly integrates zoning code text into 3D maps that show zoned development potential, providing a self-service public portal reducing front counter citizen inquiries by 10x. Drone Program— Developed Cupertino's Drone Policy and Procedures and established a drone training program. Moved to Enterprise GIS—Enhanced security and authentication options through web-tier authentication, Active Directory,and more. Teen Commission Online Application— Implemented an online Teen Commission applicant intake solution enabling greater productivity and collaboration. Aspiring teen commission applicants can apply online and get their parents'digital signatures via the online application portal. Zendesk Customer Service Solution for Community Development— Implemented a Zendesk customer service solution for Community Development staff to facilitate the management of their customer services requests and communications enabling greater productivity and collaboration. Business License Move to Accela— Implemented Business License module in Accela Land Management System for smart and accessible infrastructure-related business licenses enabling greater productivity and collaboration. Customer In-person Appointment Calendars—Implemented MS Appointments booking calendars where external customers can make in-person appointments during Covid facility closures. Applications staff configured the appointment booking sites for Building,Planning,Public Works,Finance,and City Clerk staff. Parks &Recreation ActiveNet Dashboards —Created dashboards that pull data from the ActiveNet system to give managers business intelligence on their daily operations. These dashboards provide various program statistics, membership details, and other related datasets to help the management and staff get business overviews and make relevant decisions. Parks & Recreation Department Continued Services Through COVID—Continued to offer services to community members,focusing on the safety of participants,and following the rules and regulations set by the county,including contact tracing guidelines. At the beginning of the pandemic, the Cupertino Sports Center offered usage of the outdoor tennis courts and several tennis programs and camps. In addition, the Department was able to continue these services through the scheduled closure due to the Seismic Retrofit project for the building. In the summer of 2021, the building had reopened to welcome members back into the gym. Equipment had been reorganized to allow for more space between users and sanitation stations were set up for cleaning equipment. The Quinlan Community Center front office reopened in July of 2021, to provide in-person customer service support for those who wished to register for classes or camps, or to reserve City facilities and picnic areas for rentals. The Cupertino Senior Center continued to engage senior members through the monthly production of The 50+ Scene, outdoor 50+sports,virtual travel, and remote classes.The building partially reopened in August of 2021, with some in-person programs and classes coming back to the center. Through a phased reopening process some senior socials have restarted, including table tennis, card playing, Bingo, and more. As of March, luncheons, in-person lectures, and day trips have returned and in May, the center is planning to be open five days a week. For a large portion of the pandemic, the building was also a dedicated COVID testing site, offering appointments twice a month. FY 2022-23 Adopted Budget Budget Message 33 Blackberry Farm reopened for the 2021 season with a handful of modifications. The pools were available for use through a reservation system to control crowds and allow time for cleaning throughout the day. This new system was welcomed by swimmers and staff received many compliments about how safe guests felt while using the pool facility. The picnic sites were also available by reservation and guests were excited to gather outdoors with friends and family again. Additionally, participants of all ages enjoyed swim lessons taught in the Blackberry Farm pools. Private, semi-private, and parent-child classes were offered, however, beginner lessons for adults were the most popular classes. Even after the stay-at-home order was lifted, the popularity of the Blackberry Farm Golf Course continued into FY 2021-2022. To date, 30,628 rounds have been played and $460,968 in revenue has come in from green fees, rentals,and pro shop merchandise. Collaboration with Capital Improvement Program (CIP) -Partnered with Public Works on outreach efforts, which included creating surveys for community members, mailing postcards to residents, presenting projects to applicable Commissions,and co-hosting public meetings to gather feedback and public input.Ongoing support with outreach efforts for park and recreation facility-related projects. Field Use Policy —Adopted policy that switched to an hourly fee structure and added two additional Sunday uses for regular permitting groups. Since adoption, the Recreation Department has been able to better track scheduled use and share it with the public on the City website. In addition, four new Youth Sports Organizations have become regular permitting groups. Strategic Plan -Completed the first edition of a strategic plan that addresses the immediate and short-term opportunities for enhancement identified in the Parks and Recreation System Master Plan. The Strategic Plan includes two formats that outline existing and planned progress toward the implementation of opportunities identified in the Master Plan. The first format organizes implementation efforts by which community goal they address,and the second organizes what enhancements are being implemented by park site. Summer Events —Revitalized several popular events, including the Summer Concerts, Movies in the Park, and Shakespeare in the Park. For the movie nights, more than 200 people attended each night, and many positive comments were received about the first movies in the park since 2019. Teen Programming/Pizza and Politics —Continued support for Cupertino teen programs. The Cupertino Youth Activity Board revitalized the Bobateeno event, the Cupertino Cafe, and new initiatives. Ongoing socialization opportunities that provide youth with mental health and tutoring resources. Dog Off Leash Area (DOLA) -Established an ongoing DOLA program at Jollyman Park providing residents opportunities for engagement with their pets. Gymnastics —Promoted physical, social, and cognitive development in children 1 to 5 years old through Bay Aerials at Monta Vista Recreation Center. Since classes began, 199 participants have registered, 86% of whom are residents. Public Works Department . 10th consecutive Tree City USA Recognition — The Tree City USA program provides communities with a four-step framework to maintain and grow their tree cover. It also gives them an avenue to celebrate their work, showing residents, visitors, and the entire country that they're committed to the mission of environmental change. . Replaced 115 fluted street light poles to provide enhanced lighting,power, and communication services to residents as well as sustainable infrastructure for the City. . Prepared facilities for employees returning to work, including completing repairs and air balancing to FY 2022-23 Adopted Budget Budget Message 34 the ventilation system at City Hall. • Provided employee information on disinfecting schedules,placing Disinfecting Stations throughout City facilities,and provided a map of station locations for The Hub. . Completed a portion of feminine sanitary product dispensers at various City facilities. The remaining dispensers are scheduled to be installed in Spring 2022. . Completed the purchase of new leaf blowers to comply with Cupertino's sound ordinance. . Initiated the grounds division irrigation controller replacement project anticipated completion by end of FY22. • Partnered with IT on more efficient documentation of backflow device testing and repairs in Cityworks. . Initiated the first phase of park amenities project-The installation of hydration stations throughout the parks. • Received and reviewed applications for 100 development projects (resulting in 161 submittal reviews) and issued 217 encroachment permits between July 1,2021 and December 31,2021 (the remainder of FY 21-22 is still in progress). . Passed a local enforceable ordinance and began implementation of Senate Bill 1383 requirements for diversion of organics, including creating a new position and hiring an Environmental Programs Assistant. . Implemented Green Halo construction and demolition debris tracking software for use by construction contractors. • Arranged installation of 77 new adjustable retractable screens to keep trash out of our creeks. . Arranged for 7-day-per-week access to free compost at mulch for Cupertino residents at the Sunnyvale SMaRT Station. FY 2022-23 Adopted Budget Budget Message 35 New Initiatives Administration Department Economic Development Strategy Update—Prepare to update the City's Economic Development strategy. The last economic development strategy was completed in 2016. Staff is in the process of gathering updated local and regional data and trends to identify the strengths and gaps of the local economy, particularly as we move into the recovery phase of the pandemic. Emergency Management Capacity Building—Focus on building response capability in the following ways: • Building more resilient communities through re-imagined volunteer programs, including the Block Leader program,with new engagement led by a dedicated full-time staff member. • Implementing a multi-year training and exercise program, consisting of regular training for City staff and volunteers as well as exercises with partner agencies and jurisdictions. . Developing new emergency operational annexes to guide the City's response to specific hazards including earthquakes and wildfires. Electrification Study — Work with cross-sector partners and experts to conduct public outreach and develop a specific strategy and policy options to achieve carbon-free buildings through electrification while navigating the economic and equity concerns that were raised during the public engagement process. Administrative Services Department ERP Need Analysis (Phase I) and RFP Development and Vendor Selection (Phase II)— Selecting a new enterprise resource planning (ERP) system. Having implemented and operated Tyler's New World System since January 2015, staff are aware of the importance of remaining up to date and ensuring the system that allows us to provide excellent services to the public is functioning optimally. Fee Study and Cost Allocation Study—The studies will analyze the City's fees and services to determine costs that can be allocated between City departments and costs that can be recovered through fees charged to the public. Community Development Department Development standards for ministerial subdivision and development of single-family zoned properties under SB-9 — Present a regular ordinance that addresses development standards for ministerial subdivision and development of single-family zoned properties to the Planning Commission and City Council in late Spring/early Summer. Adopt environmental protection standard conditions of approval (adopt objective standards) -Prepare and present a new Chapter with regulations on implementing environmental protection standards for all projects, whether ministerial or discretionary. Innovation & Technology Department Climate Monitoring and Noise Measurement extension—Install four air quality sensors that will be placed close to the quarries to monitor real-time air quality data 24/7 365 days a year. Together these solutions provide the Sustainability division with a good representation of air quality data for Cupertino—an important component to the City's Climate Action Plan. FY 2022-23 Adopted Budget Budget Message 36 Cupertino Room Lectern Upgrade project—Upgrade the audiovisual system in the Cupertino Room to allow for better connection as well as updated infrastructure. Social Room Audio Upgrade project —Upgrade audio system at the Quinlan Center Social Room to allow and support wireless/bluetooth infrastructure. Sports Center Audio system upgrade —Upgrade audio system in the Cupertino Sports Center to better facilitate Sports Center programs and classes such as Zumba, Pilates, cardio workout, etc. where mixed amplification of music and instructor microphone audio is an important feature. Video Capture Camera Expansion — Expand video capture to public areas within City facilities by adding or replacing cameras in areas such as the lobby, entry, and exit points. Cameras will also be placed around Blackberry Farm, specifically around high-risk areas such as the pool to provide enhanced security to City residents. City Hall Enterprise Server&Storage Tech Refresh—Replace the current server environment that houses the City's Financial ERP and Land Management business applications with a Cloud-based solution known as Infrastructure as a Service (IaaS). IaaS provides a secure, scalable solution that meets the IT strategic needs of the City. Supplemental Wi-Fi Expansion in Public Areas —Continued expansion of the City's Internet services to three additional City parks. Members of the public will be able to access WiFi internet services at these parks and City staff working at these parks will be able to have a secure seamless connection to the City network. Proactive Managed Risk and Security Monitoring— Respond to active threats through proactive monitoring and management tools that scan,manage and resolve security vulnerabilities. Computer-Aided Dispatch (CAD) and Records Management System (RMS) WAN Link—Ensure the City's EOC has all the technical tools and capabilities to allow staff to make informed decisions based on situational awareness. Secure telecommunications link from the County to City Hall through Public Safety Computer-aided dispatch and records management system(CAD/RMS)access from the County. Dataverse Architecture — Develop a common data warehouse that will integrate with Cupertino's enterprise applications to ensure data security, integrity, and normalization. Dataverse allows data to be integrated from multiple sources into a single store, which can then be used to quickly develop applications, dashboards, automated business processes,and more. AR McClellan — Bring the Cupertino native wildlife to life in a fun interactive Augmented Reality (AR) environment for the visitors,classes,and tours at McClellan Ranch Preserve. Laserfiche Roadmap — Year three of the Laserfiche Roadmap. Complete the file plan and restructuring for all Divisions. Ensure all scanning of historic records is underway, as well as build out the internal web-link portal and conduct Division specific training. Capital Improvement Plan (CIP)Management System—Implement a CIP management system that will streamline how CIP projects are managed, bring consistency to CIP workflows and reporting, combine CIP and related financial data in one place, as well as provide an external portal for contractors and developers to upload CIP submittals and invoices in one consistent,reliable,and trackable platform. Quinlan Touch Screen —Replace the existing static display, that staff post 24" poster paper to of the calendar of events,building layout, and room booking info sitting in the Quinlan lobby now. The replacement would be a state-of-the-art interactive display that allows customers to navigate through all that P&R has to offer, e.g., classes,facilities,parks,events,and more. FY 2022-23 Adopted Budget Budget Message 37 Business Process Automation— Moving forward with the onboarding in SimpliGov, a system that has proven results, we will be able to automate any mundane process quickly and efficiently, drag-and-drop form builder, import existing forms, build new forms, embed conditional logic, use multiple form field types, integrate e- signatures and more. We'll be able to assemble even complex workflows with supercharged efficiency. The standardized platform form components and workflows will ensure consistency in filings, routings, revisions, approvals,archiving,and more. Drone Program — Incorporate drone operations into Emergency Operations Plan and work with City departments to find efficiencies and benefits to using drones for routine workflows—this will have the added bonus of keeping the drone flying and image processing stills sharp for our certified staff. Disaster assessment— Obtain a tool that can capture high-resolution imagery quickly to ascertain the damage, prioritize response and communicate damage visually with EOC and disaster service workers. . Image capture for before/after analysis. This is useful for PW and P&R projects in demonstrating work progress and end results. Images could be quickly uploaded to the City's website and provided to the Communications Division with video and photo acquisition for City branding and marketing. • Coupled with Pix4D (another request) capture 3D imagery of a specific building or business area in Cupertino to understand the impact of new development or future growth. . Test Pilot-Determine the health of trees from a different vantage point. • Test Pilot-Building Roof inspections ERP Phase I.Need Analysis—External consultant will conduct an ERP Need Analysis and gap analysis in terms of business needs and functionality as a significant issue with the current system is the lack of security logs required for auditing. ERP Phase II(RFP Development and Vendor Selection)—Work with the contractor for RFP development detailing all business and functional requirements and specifications that will come out to need analysis and meetings/surveys with various stakeholders. After RFP response the final vendor selection meetings and other related processes will also be part of this project. ACA Guide and Wrapper— Enhance user interface and provide seamless navigation through a new guide and wrapper of the City's Land Management System's Accela Citizen Access. The portals site has high traffic for users seeking the permit counter and business license services and user-friendly interface and navigation will help the city to provide its core services to our customers in an efficient way. Consolidated Code Enforcement Services — Consolidate code's operations under the Accela Land Management system and Cupertino 311. The project will automate the code enforcement business process under one enterprise Land use management system. Working with one system creates a more efficient, trusted (which data is correct) outcome. Additionally, custom reports become an easier task due to one application — one database. Finally, code complaints and service requests are routed from Cupertino 311 system for the code enforcement officers. Climate Action Plan software—Develop, in collaboration with Sustainability, Climate change and adopt our City to consider the wide range of hazards that a changing climate poses to public policy and public health. Resource Mapping Software— Implement the Startup Space platform to provide ecosystem mapping between resource providers and small and medium-size businesses.Provide access to government,public,and privately sponsored resources for underrepresented and minority-owned small business owners. Accela Roadmap— Develop strategic initiatives for achieving the maximum potential from the use of Accela platform pertaining to both its back-office systems and its public portal for Cupertino residents and external stakeholders. FY 2022-23 Adopted Budget Budget Message 38 ActiveNet Roadmap—Develop strategic initiatives for achieving the maximum potential from the use of Accela platform pertaining to both its back-office systems and its public portal for Cupertino residents. City Website Redesign—Work with various departments and divisions to redesign the City of Cupertino website (cupertino.org). This project will involve building new wireframes, content audit, usability analysis, tracking current traffic patterns,and evaluating ADA compliance of city webpages. Parks & Recreation Department Enable Additional DOLA Locations—Standardize the process to create DOLA trial programs, with no more than two trials running at a time. Two new trials should start as soon as feasible, and the new trial should last at least 6 months unless the trial is adjacent to a field or playground. Respond to and evaluate community-driven DOLA proposals to implement additional DOLAs throughout the City. Recruit for the 2023-2025 Poet Laureate—Work with the Library Commission to advertise and successfully recruit the next Poet Laureate for the 2023-2025 calendar years. Update the Community Funding Policy — Review and update the Community Funding Policy to establish and initiate for the FY 2023-2024 grant funding period. Support Outreach Efforts for New Park Projects (Memorial Park Design, Lawrence Mitty Park, Jollyman All-Inclusive Playground)—Partner with Communications and the Capital Improvement Program to perform outreach efforts for the upcoming park-related projects. Public Works Department Local Roadway Safety Plan—Develop Local Roadway Safety Plan to identify high-risk intersections and roadway corridors,design safety improvements,and enhance eligibility for federal safety improvement grants Via Shuttle—Explore options for a multi-city expansion of the Via on-demand shuttle, in partnership with the cities of San Jose and Santa Clara. In conjunction with this, staff has applied for a Ca1STA grant through the Transit and Intercity Rail Capital Program (TIRCP) to potentially fund one-half the capital and operating costs of the expansion. Facilities Operations Improvements -Implement an enhanced preventive maintenance program for City facilities including emergency power,ventilation systems,and energy management systems at various City facilities. Development Improvements -Review and entitlement for various new development projects including Marina, Vallco Parkway 1 for Apple, 1655 S.De Anza Blvd,and other new project initiatives. Environmental Programs —Prepare for negotiation of a new landfill agreement. The current agreement, established in 1989,expires in November 2023. FY 2022-23 Adopted Budget Budget Message 39 Budget Overview The Adopted Budget reflects total expenditures of $130.6 million, a decrease of $18.3 million, or 12.3%, from last year's Adopted Budget. Total revenues are $130.2 million, down $2.6 million, or 2.0%, from last year's Adopted Budget. General Fund expenditures, which support most City operations, are $95.2 million, an increase of$5.4 million, or 6.0%, from the FY 2021-22 Adopted Budget. General Fund revenues are $94.7 million, up $5.0 million, or 5.6%, from the FY 2021-22 Adopted Budget. The General Fund is projected to end FY 2022-23 with approximately $48.3 million in unassigned fund balance. Unassigned fund balance may be transferred to the Capital Reserve, Capital Projects Reserve, or Section 115 Trust per the Fund Balance and Use of One Time Funds Policy. ProposedFund Type ... Balance/Net Position General 94,661,388 95,167,779 (506,391) Special Revenue 16,315,081 11,244,109 5,070,972 Debt Service 2,675,800 2,675,800 - Capital Projects 2,500,000 3,633,600 (1,133,600) Enterprise 6,182,392 9,003,331 (2,820,939) Intemal Service 7,909,496 8,862,706 (953,210) TOTAL $ = 130,244,157 $�30,587,325 $ As shown in the chart below,the Adopted Budget's largest fund is the General fund at 73%. FY 2022-23 Adopted Budget Expenditures by Fund Special Revenue 11,244,109 (9%) Debt Service 2,675,800 (2%) Capital Projects 3,633,600 (3%) $130,587,325 Enterprise 9,003,331 (7%) General 95,167,779 (73%) Internal Service 8,862,706 (7%) The graph below summarizes the changes in the City's General Fund for five years: FY 2022-23 Adopted Budget Budget Message 40 General Fund Revenues, Expenditures,and Transfers Out In Millions $111.1 $106.2 $94.7 $88.8 $2.2 $89.6 .7 $12.0 $42 $1.4$30.9 $11.3 $15.1 $19.4 FY 2019-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 Actuals Actuals Actuals Adopted Budget Adopted Budget MGeneral Fund Expenditures General Fund Transfers Out MOne-Time Special Projects -General Fund Revenues The Adopted Budget funds 225 positions (including Councilmembers), an increase of 14 positions from the FY 2021-22 Amended Budget. While the City has experienced increases in sales tax during the pandemic, there is uncertainty around the City's future revenues post-pandemic. The City is cautiously optimistic as it adds new full-time employees, and City staff will bring forward requests for City Council approval as more information becomes available to make informed decisions. DepartmentPosition FY 2021-22 Adopted Budget 208.75 FY 2021-22 Amended Budget City Attorney Administration 1.00 Senior Assistant City Attorney Administration 1.00 Community Relations Coordinator Administration 0.25 IF 2021-22 Amended Budget 211.00 FY 2022-23 Adopted Budget Administrative Assistant Administration 1.00 Assistant City Manager Administration 1.00 Communications Analyst(Limited-Term) Administration 1.00 Legislative Aide (Management Analyst) Administration 1.00 Budget Manager Administrative Services 1.00 Purchasing Manager Administrative Services 1.00 Community Outreach Specialist Parks and Recreation 1.00 Associate Planner Community Development 1.00 Code Enforcement Officer Community Development 1.00 Office Assistant Community Development 1.00 Senior Planner(Housing) Community Development 1.00 Senior Planner(Planning) Community Development 1.00 Management Analyst Public Works 1.00 Maintenance Worker Lead Public Works 1.00 2022-23 Adopted Budget 225.00 FY 2022-23 Adopted Budget Budget Message 41 Changes to the Budget and Policies Revised Fees City Council approved the FY 2022-23 fee schedules on May 19,2022. The increased fees are estimated to result in increased revenues of approximately$92,662 in the General Fund and$158,000 in the Enterprise Funds. Investment Policy The City Council annually updates and adopts a City Investment Policy that complies with State statutes on allowable investments. An external auditor performs agreed-upon procedures to review City compliance with the policy. The Audit Committee reviews the policy and acts as an investment oversight committee. City Council approved the current City Investment Policy on May 19,2022. GANN Appropriations Limit The City's FY 2022-23 appropriations limit is $122,756,522, an increase of $8.1 million, or 7.1%, from the FY 2021-22 limit of$114,666,491.If a city exceeds the legal limit,excess tax revenue must be returned to the State or citizens through refunds, rebates, or other means that may be determined at that time. For FY 2022-23, the City's estimated appropriations of proceeds from taxes, less statutory exclusions, do not appear to exceed the limit and are not expected to present a constraint on current or future deliberations. Revised Fund Balance and Use of One-Time Funds Policy On March 8, 2022, City Council approved updates to the Committed, Unassigned Fund Balance and Use of One-Time Funds Policy. The Economic Uncertainty Reserve was increased from $19 million to $24 million to align with increases in the City's revenues and expenditures. A Capital Projects Reserve of $10 million was created to fund capital projects. Finally, $2 million was transferred to the Section 115 Pension Trust to fund pension costs. Budget by Fund General Fund The General Fund pays for core services such as public safety, public works, planning and community development, park maintenance, code enforcement, and the administrative services required to support them. The revenue used to pay for these services comes primarily from local taxes such as sales tax, property tax, transient occupancy tax, charges for service, and other discretionary sources. General Fund resources fund operations that do not have other dedicated funding sources. General Fund revenues are projected to be$94.7 million,up$5.0 million,or 5.6%,from the FY 2021-22 Adopted Budget. In FY 2020-21, sales tax revenues experienced an unprecedented increase due to increased demand for technology during the transition to remote work and increased state-wide online sales. Sales tax is expected to be lower in FY 2022-23 compared to FY 2020-21 as the California Department of Tax and Fee Administration (CDTFA) is currently auditing one of the City's sales tax revenue sources. The impact of this audit is unknown but has the potential to significantly affect the City's sales tax revenues. Once more information is known, staff will bring updates to Council. Property tax revenues will increase slightly. Transient occupancy taxes will continue to be heavily impacted as business travel slowly recovers. General Fund expenditures are$95.2 million, representing a$5.4 million, or 6.0%increase from the FY 2021-22 Adopted Budget.The increase is primarily due to the addition of 14 positions and the addition of a$2.5 million transfer to the Capital Reserve. In the past, transfers to the Capital Reserve were not programmed in the Adopted Budget;instead, funds were transferred to the Capital Reserve as a mid-year budget adjustment. Due to the uncertainty of the pandemic,the City implemented significant budget reduction strategies in FY 2020-21, FY 2022-23 Adopted Budget Budget Message 42 which increased the General Fund's unassigned fund balance. With the General Fund's fiscal condition remaining strong, the City intends to invest in housing, infrastructure, and additional staffing to meet the needs of the community.As the City emerges from the pandemic,staff will continue to monitor the City's fiscal condition and ensure City Council is informed regularly. The following chart shows four years of total revenue, expenditures, and changes to fund balance for the General Fund: General Fund Revenues, Expenditures,and Change in Fund Balance In Millions 5111.1 $106.2 $95.5 $94.7$95.2 $88.8 $89.6$89.8 $82.4 583.9 $22.3 515.6 $6.4 $(0.1) $(0.5) FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 Actuals Actuals Actuals Adopted Budget Adopted Budget ■Revenues ■Expenditures Change in Fund Balance In FY 2022-23, the General Fund's unassigned fund balance is projected to be $48.3 million, an increase of$2.3 million, or 4.9%, from the FY 2021-22 Amended Budget. Total fund balance is estimated to be$110.1 million, a decrease of$0.5 million, or 0.5%, from the FY 2021-22 Amended Budget. The decrease is primarily attributable to a small deficit in FY 2022-23. GENERAL FUND FUND BALANCE AdoptedClassification Actual Actual ,,, Budget Budget Budget Unassigned 37,426,951 52,449,546 46,068,178 46,068,178 48,332,873 4.9 All Other Classifications 37,078,871 44,401,243 64,209,752 64,542,526 61,771,440 -4.3% TOTAL FU111>?RAiAn1rE-7a_sn5 rI 110,277a110,610,704 110,104,313 As shown in the graph below,the majority of General Fund resources are used to support Public Works(27%), Law Enforcement (18%), Non-Departmental (13%), Community Development (12%), Administration (10%), and Parks and Recreation(8%).Non-Departmental expenditures are transfers to other funds. FY 2022-23 Adopted Budget Budget Message 43 FY 2022-23 Adopted Budget General Fund Expenditures by Department Parks and Recreation $7,465,688 Public Works (8%) $25,794,216 (27%) Administration $9,648,419 (10%) Administrative Services $95,167,779 $7,386,069 (8%) Non-Departmental Community $12,013,803 Development (13%) $11,348,827 (12%) Council and Commissions $1,306,376 Law Enforcement nnovation and (1%) $16,814,519 Technology (18%) $3,399,862 (4%) Special Revenue Funds Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. The largest Special Revenue Fund accounts for streets, roads, and transportation. Other funds account for storm drain management, affordable housing programs, and park development. The Adopted Budget for Special Revenue Funds is $11.2 million, which is a $7.4 million, or 39.5%, decrease from the FY 2021-22 Adopted Budget due to a decrease in Capital Improvement Program, transportation, and City Work Program projects. The Special Revenue Funds are funded by $13.3 million in restricted department revenue and $3.0 million in transfers, bringing total funding to $16.3 million. The Special Revenue Funds are projected to begin the year with fund balance of $28.9 million and end the year with fund balance of $34.0 million, increasing by $5.1 million. Increased revenue is primarily due to housing mitigation revenue in the BMR Housing Fund. Debt Service Funds The Public Facilities Corporation Debt Service Fund provides for the payment of principal, interest, and associated administrative costs incurred with issuing debt instruments. On September 29, 2020, the City's 2020A Certificates of Participation (2020 COPs) were successfully sold to refund the City's 2012 Certificates of Participation for debt service savings. The refunding generated net present value savings of approximately $3.14 million, 11.61% of refunded par, and a True Interest Cost of 0.72%. Savings to the City's General Fund amounts to approximately $494,000 per year for the next ten years or almost $5 million in total savings. The debt is expected to be fully paid by FY 2029-30. The Adopted Budget for Debt Service Funds is$2.7 million,relatively unchanged from the FY 2021-22 Adopted Budget.The Debt Service Funds are funded by$2.7 million in transfers from the General Fund. FY 2022-23 Adopted Budget Budget Message 44 Capital Projects Funds Capital Projects Funds typically account for the acquisition or construction of major capital facilities. The Capital Improvement Projects Fund, Stevens Creek Corridor Park Fund, and Capital Reserve Fund are Capital Projects Funds.Capital projects are identified in the five-year Capital Improvement Program(CIP). The Adopted Budget for Capital Projects Funds is $3.6 million, a decrease of$15.9 million, or 81.4%, from the FY 2021-22 Adopted Budget due to a reduction in Capital Improvement Program projects. The Capital Projects Funds are funded by$2.5 million in transfers from the General Fund and$1.1 million in reserves. Transfers from the General Fund to the Capital Reserve are $2.5 million. In the past, transfers to the Capital Reserve were not budgeted and adjusted at mid-year. Given the City's aging infrastructure and capital project needs,the City is budgeting transfers to facilitate Capital Improvement Program forecasting. Enterprise Funds Enterprise Funds are for services funded directly by fees charged for goods or services. Enterprise Funds consist of Resource Recovery for the solid waste collection franchise, Blackberry Farm for the City-owned golf course, Sports Center for the Cupertino Sports Center, and Recreation Programs for cultural, youth, teen, sports,and physical recreation programs. The Adopted Budget for Enterprise Funds is$9.0 million, a decrease of$0.4 million,or 4.4%, from the FY 2021- 22 Adopted Budget. The Enterprise Funds are funded by $5.8 million in program revenue, $0.4 million in transfers,and$2.8 million in reserves. The Enterprise Funds are projected to begin the year with$7.5 million in reserves and end the year with$4.7 million in reserves, decreasing by$2.8 million. The Enterprise Funds are projected to use reserves that have been increasing in recent years. During the pandemic,the Parks and Recreation funds built up reserves as revenues were higher than expenditures. Internal Service Funds Internal Service Funds are used for areas where goods or services are provided to other City departments or governments on a cost-reimbursement basis. Internal Service Funds include funds and programs for innovation and technology, workers' compensation, equipment, compensated absences, long-term disability, and retiree medical insurance. The Adopted Budget for Internal Service Funds is$8.9 million, similar to the FY 2021-22 Adopted Budget. The Internal Service Funds are funded by $4.5 million in program revenue, $3.4 million in transfers from the General Fund, and$1.0 million in reserves.The Internal Service Funds are projected to begin the year with$3.7 million in reserves and end with$2.7 million in reserves,decreasing by$1.0 million. Internal Service Funds are projected to use reserves because the City is eliminating the General Fund transfer to the Retiree Medical Fund. The City plans to fund Other Post-Employment Benefits (OPEB) costs with the City's Section 115 OPEB Trust because the City's OPEB plan is over 100% funded. The costs for the acquisition of fixed assets for vehicle and equipment replacement are not included and will be brought to City Council at a later time. FY 2022-23 Adopted Budget Budget Message 45 Special Projects The FY 2022-23 Adopted Budget includes funding for one-time Special Projects, described in each program's Special Project section and summarized in the following table. The budgets of some Special Projects from previous fiscal years may be carried forward into FY 2022-23. Program Project Expenditure Funding Source Strategic Goal CITY WORK PROGRAM ADMINISTRATION 120 City Manager CWP-Safe Gun Storage Ordinance 12,000 General Fund Quality of Life 122 Sustainability Division CWP-Electrification Study 50,000 General Fund Sustainability and Fiscal Strategy 126 Office of Communications CWP-Community Engagement on Alternative 12,000 General Fund Publ Eng and Transparency/ Transportation and Parking Transportation 126 Office of Communications CWP-Integrated Plan for Community 30,000 General Fund Publ Eng and Transparency 705 Economic Development CWP-Cu rtino Store Implementation 145,000 General Fund Publ Eng and Transparency 11111111MIUTAL 4fiftSTRATION INNOVATION&TECHNOLOGY 300 Administration CWP-Cybersecurity Public Education 7,500 General Fund Publ Eng and Transparency 300 Administration CWP-Hybrid Meeting for City Council and 15,000 General Fund Publ Eng and Transparency Commission Meetings 300 Administration CWP-License Plate Readers 60,000 General Fund Quality of Life TOTAL INNOVATION&TE 82,500 ADMINISTRATIVE SERVICES 412 Human Resources CWP-Student Internship Program 15,000 General Fund Publ Eng and Transparency 426 Budgeting CWP-Analyze Potential Revenue Measures 50,000 General Fund Sustainability and Fiscal Strategy TOTAL ADMINISTRATIVE SERVI 65,000 PARKS AND RECREATION 601 Rec&Comm Svcs Administration CWP-Senior Strategy 35,000 General Fund Publ Eng and Transparency 601 Rec&Comm Svcs Administration CWP-Artwork at the Library/Exhibits/Poetry 10,000 General Fund Quality of Life and Art Day 601 Rec&Comm Svcs Administration CWP-Intergenerational Engagement 20,000 General Fund Publ Eng and Transparency EErrOTAL PATIMAND-WREAT13-N 65,000 COMMUNITY DEVELOPMENT 700 Community Development Admin CWP-Homeless Jobs Program 200,000 General Fund Housing 711 BMR Affordable Housing Fund CWP-Housing Programs for De Anza College 25,000 General Fund Housing Students TOTAL COMMUNITY DEVELOPMENT PUBLIC WORKS 088 Blackberry Farm Golf Renov/Alt Use Blackberry Farm Golf Course Needs - BBF Quality of Life Assessment' 264 City Owned Properties Analysis Study Session on City-Owned PropertieS2 - CIP Sustainability and Fiscal Strategy 844 Traffic Engineering CWP-Bicycle Facilities 50,000 General Fund Transportation 844 Traffic Engineering CWP-Lawson Middle School Bikeway 40,000 General Fund Transportation 844 Traffic Engineering CWP-Vision Zero 80,000 General Fund Transportation TOTAL PUBLIC WORKS 170,000 TOTAL •RK PROGRAM 856,500 OTHER SPECIAL PROJECTS ADMINISTRATION 122 Sustainability Division Climate Action Plan Vision Summary Doc 10,000 General Fund 305 Video Field Lighting Package 10,000 General Fund 633 Disaster Preparedness Business Continuity Resilience 1,000,000 General Fund 705 Economic Development Economic Development Strategy Outreach 20,000 General Fund TOTAL ADMINISTRATION INNOVATION&TECHNOLOGY 300 Administration Aclima and Envirosuite Pilot EMension 66,000 General Fund 305 Video Cupertino Room Lectern Upgrade 7,500 General Fund 305 Video Cupertino Room Enhanced Video System 35,000 General Fund 305 Video Social Room Audio System Upgrade 16,500 General Fund 305 Video Sports Center Audio System Upgrade 9,000 General Fund FY 2022-23 Adopted Budget Budget Message 46 308 Applications Accela Citizen Access Guide&Wrapper 25,000 General Fund 308 Applications Accela Roadmap 25,000 General Fund 308 Applications ActiveNet Roadmap 25,000 General Fund 308 Applications Climate Action Plan Implementation Software 20,000 General Fund 308 Applications Code Enforcement Consolidated Application 40,000 General Fund 308 Applications Crisis Management Software 15,000 General Fund 308 Applications ERP(Phase I1) 106,928 General Fund 308 Applications Semi Annual ADA Consultant 35,000 General Fund 308 Applications Zendesk for Parks and Rec 40,000 General Fund 310 Infrastructure CAD&RMS WAN Link 7,200 I&T 310 Infrastructure City Hall Enterprise Server&Storage Tech 150,000 I&T 310 Infrastructure City Facilities Camera Capture Expansion 60,000 I&T 310 Infrastructure Digital Signage 25,000 I&T 310 Infrastructure Office 365 E5 Licenses 7,000 I&T 310 Infrastructure Proactive Managed Risk&Security Monitoring 23,000 I&T 310 Infrastructure Public Bicycle Smart Rack Docks Technology 2,000 I&T Enhancement 310 Infrastructure Sign Shop Printer Warranty 3,000 I&T 310 Infrastructure Supplemental Wi-Fi Expansion in Public Areas 20,500 I&T 986 GIS Additional Telematics Devices 5,300 I&T 986 GIS Amazon EC2 Instance t3aXLarge 5,000 I&T 986 GLS Business Process Automation Platform 42,000 I&T 986 GIS Drone Instructor Training 1,600 I&T 986 GIS Geotab Keyless Solution 6,000 I&T 986 GIs Google Query 5,000 I&T 986 GIs Laserfiche Scanning 30,000 I&T TOTAL INNOVATION&TECHNOLOGY 858,528 ADMINISTRATIVE SERVICES 405 Accounting Fee Study 75,000 General Fund 412 Human Resources Hybrid Recruitment Strategy 40,000 General Fund 412 Human Resources Online Marketing and Branding 50,000 General Fund 425 Purchasing Federal Grants Program 100,000 General Fund ADMINISTRATIVE SERVI 265,000 PUBLIC WORKS 801 Resources Recovery SB1383 Procurement Requirements 77,553 Resource Recovery 801 Resources Recovery Single Use Plastics Ordinance 40,000 Resource Recovery 802 Non Point Source Storm Water(SWPPP)Update 19,100 Env Mgmt Chi Crk 804 Plan Review BBF Golf Netting Support Inspect 6,000 General Fund 807 Service Center Administration Office Reconfiguration 77,850 General Fund 808 McClellan Ranch Park Pedestrian Bridge Decking Replacement 70,000 General Fund 809 Memorial Park Veterans Memorial Maintenance 15,000 General Fund 811 BBF Ground Maintenance Pedestrian Bridge Decking Replacement 30,000 General Fund 813 Neighborhood Parks Franco Park Solar Powered Light Bollard 18,000 General Fund Replacement 813 Neighborhood Parks Portal Park Concrete Replacement/Repair 35,000 General Fund 813 Neighborhood Parks Wilson Park Irrigation Pump Replacement 60,000 General Fund 820 Sidewalk Curb and Gutter Annual Sidewalk Curb&Gutter 1,453,200 Transportation Fund 821 Street Pavement Maintenance Annual Asphalt Project 2,179,800 Transportation Fund 822 Street Sign Marking Holiday Banner Replacement 10,300 Transportation Fund 824 Overpasses and Medians Mound Removals 141,900 General Fund 824 Overpasses and Medians Split Rail Fence-SCB&Mary Ave 16,400 General Fund 824 Overpasses and Medians Trench Work 40,000 General Fund 825 Street Tree Maintenance Trees and Badges 15,000 General Fund 828 Bldg Maint Library Ventilation Preventative Maintenance&Repair 45,000 General Fund 829 Bldg Maint Service Center Air Conditioning Replacement 16,500 General Fund 829 Bldg Maint Service Center Conference Room Carpet Replacement 12,000 General Fund 829 Bldg Maint Service Center Locker Room Floor Replacement 12,000 General Fund 829 Bldg Maint Service Center Mechanic Bay Lighting Upgrade 15,000 General Fund 829 Bldg Maint Service Center Roof Gutter Replacement 12,000 General Fund 829 Bldg Maint Service Center Shops Roof Replacement Phase 2 42,000 General Fund 830 Bldg Maint Quinlan Center Conference Room Carpet Replacement 14,000 General Fund 830 Bldg Maint Quinlan Center Stage Floor Refinishing 20,000 General Fund 831 Bldg Maint Senior Center Air Conditioning Replacement 14,500 General Fund 831 Bldg Maint Senior Center Exterior Deck Dry Rot Repair 9,000 General Fund 831 Bldg Maint Senior Center Partial Roof Replacement 75,000 General Fund 831 Bldg Maint Senior Center Energy Management System Upgrades 90,000 General Fund 832 Bldg Maint McClellan Ranch 4H Roof and Gutter Replacement 25,000 General Fund 832 Bldg Maint McClellan Ranch Milk Barn Exterior Painting 30,000 General Fund FY 2022-23 Adopted Budget Budget Message 47 836 Bldg Maint Sports Center Locker Room Floor Replacement 15,000 General Fund 836 Bldg Maint Sports Center Racquetball Court Floor Refinishing 16,000 General Fund 836 Bldg Maint Sports Center Ventilation Preventive Maintenance and Repair 35,000 General Fund 841 BBF Facilities Maintenance Blesch,Byrne and Stocklmeir Maintenance 25,000 General Fund Allowance 848 Street Lighting Service Center Exterior Building Light Fixture 8,300 General Fund LED Upgrade 848 Street Lighting Street Light Pole Replacement 213,000 General Fund 853 Storm Drain Fee Permeable Pavement 12,500 Env Mgmt Cln Crk 853 Storm Drain Fee Rainwater Capture 12,500 Env Mgmt Cln Crk 854 General Fund Subsidy CUSD Joint Use Cost Share 21,868 Env Mgmt Cln Crk 854 General Fund Subsidy Low Income Cost Share 8,000 Env Mgmt Cln Crk TOTAL PUBLIC WORKS TOTALOTHER SPECIAL PROJECTS TOTAL • 1Study Session on City-Owned Properties ($90,000) is funded in the Capital Improvement Program budget under Stocklmeier, Byrne, and Blesch: Inspection Reports and Analysis. The$23,600 budgeted in FY 2022-23 is in addition to the$76,400 budgeted in FY 2021-22. 2Blackberry Farm Golf Course Needs Assessment ($23,600) is funded in the Capital Improvement Program budget under Blackberry Farm Golf Course/Alternative Use Study. Current Economic Update National and State Economic Conditions Real gross domestic product (GDP) increased at an annual rate of 6.9 percent in the fourth quarter of 2021, following an increase of 2.3 percent in the third quarter. The increase was revised down 0.1 percentage points from the "second" estimate released in February. The acceleration in the fourth quarter was led by an acceleration in inventory investment, upturns in exports and residential fixed investment, and an acceleration in consumer spending.In the fourth quarter,COVID-19 cases resulted in continued restrictions and disruptions in the operations of establishments in some parts of the country. Government assistance payments in the form of forgivable loans to businesses, grants to state and local governments, and social benefits to households all decreased as provisions of several federal programs expired or tapered off. In 2022, geopolitical conflict has fueled volatility in financial markets. The conflict has exacerbated inflationary pressures, particularly in energy and commodities, and has caused tightening conditions in financial markets. While consumer spending and economic growth remain strong, an extended conflict along with elevated energy prices increases the risk of an economic slowdown later this year.While the Federal Reserve is expected to tighten monetary policy, the Federal Open Market Committee (FOMC) has very little margin for error as it attempts to combat inflation without pushing the economy into a recession. Over the near term, the City's investment manager, Chandler Asset Management, expects financial market volatility to remain elevated and conditions to remain tighter with heightened geopolitical risk,supply chain bottlenecks and persistent inflation, and the Federal Reserve's pivot to less accommodative monetary policy. The FOMC raised the federal funds rate by 0.25% at their March 16th meeting to a target range of 0.25% to 0.50%. The Federal Reserve also ended its bond-buying program as expected in March, which included the purchase of Treasury and agency mortgage-backed securities. Federal Reserve Chair Powell suggested that balance sheet runoff could begin as early as their next meeting in May, sooner than previously anticipated, and that the pace of the unwind will likely be faster than in the previous quantitative tightening cycle. The dot plot favors six additional rate hikes in 2022,which implies a 25 basis point rate hike at each remaining meeting this year,but the Fed hasn't ruled out incorporating one or more 50 basis point hikes to address inflation. The FOMC's Summary of Economic Projections forecasts higher Personal Consumption Expenditure (PCE) FY 2022-23 Adopted Budget Budget Message 48 inflation this year at 4.3% and a lower growth rate of 2.8% real GDP. Chandler Asset Management is anticipating additional rate hikes by the Federal Reserve this year,but they do not believe that monetary policy is on a pre-set course and expect the Federal Reserve's policy adjustments will depend on developments in the economy. US Unemployment Rate Percent 6.0 5.0 4.4 4.4 4.0 3 8 3.6 March 2016 March 2017 March 2018 March 2019 March 2020 March 2021 March 2022 The U.S. unemployment rate was 3.6% in March 2022, down from 6.0% in March 2021. For the first time since the start of the pandemic, the nation's unemployment rate has returned to its February 2020 level of 3.5%. The participation rate increased to 62.3% from 62.4%, remaining below February 2020 levels of 63.4%. A broader measure of unemployment, U-6, which includes those marginally attached to the labor force and employed part-time for economic reasons,decreased to 6.9%from 7.2%. Consumer confidence, as reflected by the Conference Board Consumer Confidence Index, decreased over the previous year and was 107.2 as of March 2022, up from 105.7 in February. Consumer confidence was up slightly in March after declines in February and January. Consumer confidence continues to be supported by strong employment growth and thus has been holding up remarkably well despite geopolitical uncertainties and expectations for inflation over the next 12 months, reaching 7.9 percent—an all-time high. However, these headwinds are expected to persist in the short term and may potentially dampen confidence as well as cool spending further in the months ahead. California's unemployment rate decreased to 4.9%in March 2022, a 3.5 percentage point decrease from 8.4%in March 2021. Employment increased to 17,396,400 in March 2022, an increase of 1,041,900, or 6.4%, from March 2021.Per capita personal income increased 7.1%in 2020 over 2019,mostly due to faster wage growth;however, it is reasonable to anticipate declines in income in 2021 as a result of COVID-19. In February, growth in the housing market continued over the prior year, with prices of single-family homes up 10.3% and sales down 8.2%from a year ago, according to the California Association of Realtors(CAR). Growth in Santa Clara County also increased over the prior year,with the prices of single-family homes up 22.3% and sales down 20.3%from a year ago. FY 2022-23 Adopted Budget Budget Message 49 Cupertino Economic Conditions Employment in the San Jose/Sunnyvale/Santa Clara Metropolitan Statistical Area (MSA) has continued to improve since the onset of the COVID-19 pandemic. The preliminary estimate of the March 2022 employment level in the MSA was 1,041,600, representing an approximately 53,000 increase from the March 2021 level of 989,000.The March 2022 preliminary unemployment rate of 3.0%has decreased from 5.1%a year ago and is the lowest since February 2020, the start of the pandemic. The local unemployment rate is lower than the national unemployment rate. Monthly Employment-San Jose/Santa Clara MSA Number of Employed Persons(not seasonally adjusted) 1,014,924 1,030,833 1,039,640 1,067,700 1,045,115 1,041,622 988,774 March 2016 March 2017 March 2018 March 2019 March 2020 March 2021 March 2022 Housing prices remain strong compared to the same period in 2021.According to CoreLogic,in February 2022, the median sale price for single-family residences and condos was $2,280,000, a 1.3% increase from February 2021. The increase in the median home prices correlates with the property tax revenue increase from last year. The City experienced a net taxable value increase of 3.5% for the 2021-22 tax roll. The bulk of the increase was due to increases in residential properties. The effects of COVID-19 on housing prices in Cupertino and the Bay Area have yet to be seen. Although values continue to increase, staff will monitor the potential impact of long- term and even permanent remote work in the City and region. FY 2022-23 Adopted Budget Budget Message 50 Key Budget Assumptions Revenue Assumptions The FY 2022-23 Adopted Budget heavily relies on the General Fund's top three revenue producers: sales tax, property tax, and transient occupancy tax. Although sales tax experienced unanticipated increases in FY 2020- 21, staff consider it a one-time increase and expect sales tax to remain below the highs in FY 2020-21. Although property taxes remain stable and positive growth is anticipated in FY 2022-23, the impacts of remote work on property values remain to be seen. Transient occupancy taxes are expected to be higher than FY 2021-22; however, they are expected to be significantly less than historical highs in FY 2018-19. Although transient occupancy taxes are expected to recover by FY 2023-24, the long-term impacts of remote work on business travel have yet to be seen. Personnel Assumptions The City is currently negotiating with its bargaining groups because labor agreements expire on June 30, 2022. Due to the uncertainty, personnel budgets only account for step increases and changes in Ca1PERS retirement rates.The budget does not include cost-of-living adjustments(COLA)or equity adjustments. Employees who have yet to reach the top step in their classification's salary range are eligible to receive a step increase on their anniversary date. Typically, classifications have five steps, with each increase equivalent to a 5%increase in salary. Currently,approximately 41%of employees are below Step 5. Non-Personnel Assumptions Non-Personnel budgets were developed based on actual expenditures in prior years and adjusted for FY 2022- 23 funding needs. In addition, one-time projects were excluded to ensure that expenditure trends reflect ongoing needs. Contingency budgets remained reduced. Program contingencies were cut to 2.5% in FY 2020- 21, and the City Manager's Contingency was reduced to $75,000 in FY 2021-22. In prior years, program contingencies were 5% of Materials and Contract Services, and the City Manager's Contingency was 5% of General Fund Materials and Contract Services,excluding the law enforcement contract. Ongoing Challenges Retirement Benefits Rising retirement costs are driving the increase in employee benefits. Cupertino provides retirement benefits for its employees through the California Public Employee's Retirement System (Ca1PERS). Poor investment returns during the Great Recession significantly decreased the plan's assets. In addition, enhanced benefits and actuarial assumption changes due to increased life expectancies increased the plan's liabilities. As a result, the City's pension costs have increased significantly and are one of the City's most significant financial obligations. The City's Ca1PERS costs are projected to increase over the next few years,as shown in the table below. Projected CalPERS Contributions FY 2022-23 FY i i - i i Projected Payroll $ 21,566,041 $ 22,159,108 $ 22,768,483 $ 23,394,616 $ 24,037,969 $ 24,699,012 Normal Cost M) 9.7% 9.5% 9.3% 9.1% 8.9% 8.8% Normal Cost $ 2,100,532 $ 2,105,115 $ 2,117,469 $ 2,128,910 $ 2,139,379 $ 2,173,513 UAL Payment $ 4,775,294 $ 5,126,000 $ 5,47000 $ 5,326,000 $ 5,545,000 $ 5,027,000 Total Contribution $ 6,875,826 $ 7,231,115 7,594,469 7,454,910 $ 7,684,3797-7,-MUMT- Total Contribution M) 31.9% 32.6% 33.4% 31.9% 32.0% 29.2% FY 2022-23 Adopted Budget Budget Message 51 In December 2016, the Ca1PERS Board of Administration lowered the discount rate from 7.5% to 7.0% with a three-year phase-in beginning in FY 2018-19. This change will result in significant increases in retirement costs but was implemented to improve the financial stability of the pension system. In FY 2021-22, the Ca1PERS Board lowered the discount rate from 7.0%to 6.8%because the FY 2020-21 investment gain of 21.3% triggered the Funding Risk Mitigation Policy. 2022 has been a volatile year for stocks. Financial conditions are expected to remain tighter with heightened geopolitical risk, supply chain bottlenecks and persistent inflation, and the Federal Reserve's pivot to a less accommodative monetary policy. If Ca1PERS' investments earn less than the 6.8% discount rate, the City can expect an increase in pension costs. The impacts from CalPERS investment earnings would affect the City's costs starting FY 2024-25 and gradually increase over five years. In May 2018,the City established a Section 115 Trust to reduce pension rate volatility on the City's budget.The Section 115 Pension Trust's balance of $17.2 million, as of June 30, 2022, can be used to fund pension costs if Ca1PERS costs increase. Revenue Volatility The City's sales tax revenue is highly dependent on a volatile revenue source: business-to-business (B2B) sales taxes. Business-to-business sales tax revenues are sensitive to economic fluctuations, as Cupertino experienced during the dot-com crash from 2000 to 2004.The City's heavy reliance on the volatile high-tech industry makes the City vulnerable. The loss of one of the City's top three sales tax producers in FY 2013-14 made the City more reliant on a single tax producer,making it more vulnerable to its business volatility. The City's sales and transient occupancy tax revenues have experienced great fluctuation since the outbreak of COVID-19 in 2020. While restaurants and hotels, general consumer goods, and automotive industry groups were severely impacted, the City's business-to-business and County pool allocation share increased substantially. Statewide shelter-in-place mandates reduced sales tax revenue from restaurants and brick and mortar retail but increased tax revenue from online sales. Additionally, the conversion to remote work throughout the State increased the demand for computer and electronics equipment, which also increased the City's sales tax revenues. In total, the City's sales tax revenues spiked to historic highs in FY 2020-21, but the City considers it one-time. As the State rebounds from the pandemic and businesses continue opening, it is anticipated that the City's restaurant and hotels, general consumer goods, and automotive industry groups will recover and increase. However, these increases will only slightly mitigate the anticipated declines in the City's business-to-business and County pool allocation as online sales fall from recent historic highs. Transient occupancy remains devastated due to reduced business travel during the pandemic. Although recovery is anticipated by FY 2023-24,the extent of the post-pandemic recovery is unknown. FY 2022-23 Adopted Budget Budget Message 52 Budget Guide FY 2022-23 Adopted Budget Budget Guide 53 This page intentionally left blank. FY 2022-23 Adopted Budget Budget Guide 54 Our Mission The mission of the City of Cupertino is to provide exceptional service,encourage all members of the community to take responsibility for one another,and support the values of education,innovation,and collaboration. FY 2022-23 Adopted Budget Budget Guide 55 Elements of the Budget Document The budget is the City's fundamental policy document. It describes the City's goals and details how resources are allocated to achieve these goals. The budget serves as the annual financial plan, an operations guide, and a communications tool. The budget guide provides an overview of the elements of the budget document. It includes a glossary of budget terminology. The budget document includes the following key elements: Budget Message: This section includes the City Manager's transmittal letter submitting the budget to the City Council. The Budget Message also summarizes the City's current and long-term financial position, highlights new programs and organizational changes addressed in the budget, and outlines both short and long-term goals of our city government. Budget Guide: This section includes the City's Mission and other tools to assist the reader in identifying key terminology in the budget document. Community Profile: This section describes Cupertino's history, the economic and city profiles, community statistics,recreation and community services,education,and additional areas of interest in the city. Financial Policies:This section provides financial policies. Financial Schedules:This section provides financial information on projected revenues, expenditures, fund balances, and reserves. It includes the Financial Overview by Fund as well as detailed fund descriptions and information on all revenues and expenditures. This section also includes a forecast of revenues,expenditures,and fund balance for the next twenty years. Additionally, this section includes an analysis of all City revenues by category. Revenue projections are based on trends, current economic indicators, and input from other agencies or consultants. Sales tax projections are based on input from our sales tax consultants, industry trends, and major company forecasts. Property tax revenues are projected by the county and adjusted by staff based on known trends. Departmental Operating Budgets: This section details historical and proposed expenditures by operating department. The City is organized into eight key operating functions, including Council and Commissions, Administration,Law Enforcement,Innovation and Technology,Administrative Services,Parks and Recreation, Community Development, and Public Works. Each department budget includes a summary narrative,financial information for the department and each of its major divisions,and staffing information. Expenditures for employee compensation and benefits are based on negotiated contracts. The materials categories of expenditures are based on a zero-base budget, with increases each year by the Consumer Price Index (CPI). Contract services are also based on a zero-based budget, with increases each year based on negotiated increases or CPI. Capital outlays are justified each year by the departments. Special Projects include any one-time projects or costs. Departmental expenditures are divided into the following categories: • Employee Compensation represents permanent full-time and part-time salary costs and overtime. . Employee Benefits represents CalPERS retirement,health insurance costs,and other benefits. • Materials and Supplies represent items purchased for repair and maintenance, operational activities such as books,uniforms and recreation supplies,office supplies,and conference and training costs. . Contract Services represents legal, consulting, and other professional services, contract repair and maintenance,utility charges,training and memberships,equipment rentals,insurance, and employment FY 2022-23 Adopted Budget Budget Guide 56 services. • Cost Allocation represents Cost Allocation and Internal Service charges to user departments . Contingencies,2.5%of budgeted materials and contract costs, are designed for unexpected expenditures and/or emergencies. • Capital Outlay represents expenditures for tangible fixed assets including land, buildings, furniture, equipment,and City vehicles. . Special Projects represent any one-time projects or costs. • Debt Service/Other represents principal and interest payments on outstanding debt and inter-fund transfers. Non-Departmental Operating Budgets: This section details historical and proposed expenditures for inter- fund transfers and debt service payments. Capital Improvement Program (CIP): The Capital Improvement Program is in a separate document, called Capital Improvement Program, that details the proposed capital projects for the next five fiscal years. The five- year plan denotes funding sources and a description of each project. The City Council approves funding for capital projects yearly.The project may expend the funds over multiple years. FY 2022-23 Adopted Budget Budget Guide 57 Glossary of Budget Terminology The City's budget contains specialized and technical terminology that is unique to public finance and budgeting.To help the reader understand the terms,a glossary of budgetary terminology is found below. Accrual—A basis of accounting in which revenues are recognized in the accounting period in which they are earned and expenses are recognized in the period in which they are incurred. Adopted Budget—Revenues and appropriations approved by the City Council in June for the following fiscal year. Allocated Costs — An expense charged by one department/division to another for services performed or expenditures of a general nature that are charged to one main account and allocated to other departments/divisions by a specified formula. Amended Budget — The status of appropriations between July 1 and June 30 includes the adopted budget, budget amendments, prior year encumbrances, approved carryovers, and transfers between objects, divisions and departments. Appropriation—An authorization made by the City Council that permits the City to incur obligations and to make expenditures of resources. Balanced Budget—A balanced budget requires that budgeted expenditures be equal to or less than projected revenues for the budget year. Budget — A financial plan for a specific period of time (fiscal year) that matches all planned revenues and expenditures with various municipal services. Budget Amendment—A legal procedure to revise a budget appropriation.Adjustments to expenditures within or between departmental budgets may be accomplished administratively. City Council approval is required for additional appropriations from fund balances or from new revenue sources. Capital Improvement Program—A plan for capital expenditures to provide for the acquisition, expansion, or rehabilitation of an element of the City's physical plant to be incurred over a fixed period of several future years. Capital Outlay—Expenditures relating to the purchase of equipment,land,and other fixed assets. Cost Allocation Plan—A plan that details how indirect costs are calculated and allocated to user departments. Cost Recovery—The establishment of user fees that is equal to the full cost of providing services. Department—A major administrative segment of the City that indicates overall management responsibility for an operation or a group of related operations within a functional area. Division—A unit of organization that reports to a department. Enterprise Fund — A fund established to account for activities that are financed and operated in a manner similar to private business enterprises, in which costs of providing services are primarily recovered through user fees. Expenditure—Utilization of fund resources. Expenditures include operating expenses, debt service and capital outlays. Expenditure Category — A basis for distinguishing types of expenditures. The major expenditure categories used by the City are employee compensation, employee benefits, materials, contract services, appropriations FY 2022-23 Adopted Budget Budget Guide 58 for contingency,special projects,capital outlay and debt service. Fiscal Year—A twelve-month time period signifying the beginning and ending period for recording financial transactions.The City has specified July 1 through June 30 for its fiscal year. Full-Time Equivalent (FTE) —The ratio of a position in comparison to the amount of time a regular, full-time employee normally works in a year. A full-time employee (1.00 FTE) is paid for 2,080 hours a year. Positions budgeted to work less than full-time are expressed as a percent of full-time. Fund—A fiscal and accounting entity for which the recording of financial transactions is made for the purpose of carrying on specific activities in accordance with the requirements placed upon the use of financial resources. Fund Balance—The net effect of assets less liabilities at any given point in time. General Fund — The fund used to account for the major operating revenues and expenditures of the City, except for those financial resources that are required to be accounted for in another fund category. General Fund revenues are derived primarily from property and other taxes. Goal—Broad mission statements that define the purpose of a department. Governmental Fund —Account for activities that are primarily tax-supported operations or other mandatory payments.Reported using the current financial resources measurement focus and the modified accrual basis of accounting. Infrastructure — Long-lived capital assets that normally are stationary in nature and can be preserved for a significantly greater number of years than most capital assets. Examples include roadways, bridges, and drainage systems. Internal Service Fund — A fund used to account for the services provided by one department to other departments on a cost-reimbursement basis. Modified Accrual—Under the modified accrual basis of accounting, revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred pursuant to appropriation authority. Operating Budget — A financial plan for the provision of direct service and support functions that provide basic governmental services. The operating budget contains appropriations for such expenditures as employee compensation, materials, contract services, capital outlay, and debt service. It does not include Capital Improvement Project expenditures. Program—A unit or organization that reports to a division. Reserve —An account used to designate a portion of the fund balance for specific future use and is, therefore, not available for general appropriation. Revenue — Increases in fund resources. Revenues include income from user fees, taxes, permits, and other sources. Self-Supporting Activity—An enterprise activity where all service costs (including principal and interest debt payments)are primarily covered solely from the earnings of the enterprise. Subsidy — Supplemental resources provided to ensure adequate funding when anticipated expenditures exceed revenues. FY 2022-23 Adopted Budget Budget Guide 59 Transfer Out —Amounts transferred from one fund to another to assist in financing the services for the recipient fund. User Fees—Fees charged to users of a particular service provided by the City. FY 2022-23 Adopted Budget Budget Guide 60 Commonly Used Acronyms ABAG Association of Bay Area Governments ACFR Annual Comprehensive Financial Report ARPA American Rescue Plan Act B/PAC Bicycle/Pedestrian Advisory Committee BAAQMD Bay Area Air Quality Management District BMR Below Market Rate CAP Cost Allocation Plan CARES Coronavirus Aid,Relief,and Economic Security Act CDTFA California Department of Tax and Fee Administration CMTA California Municipal Treasurers Association CPI Consumer Price Index CPUC California Public Utilities Commission CSMFO California Society of Municipal Finance Officers EAP Employee Assistance Program EIR Environmental Impact Statement EOC Emergency Operations Center ERAF Education Revenue Augmentation Fund FEMA Federal Emergency Management Agency FLSA Fair Labor Standards Act FPPC Fair Political Practices Commission FSA Flexible Spending Account FY Fiscal Year GASB Governmental Accounting Standards Board FY 2022-23 Adopted Budget Budget Guide 61 GFOA Governmental Finance Officers Association HVAC Heating Ventilation and Air Conditioning IPM Integrated Pest Management JPA Joint Powers Authority LAIF Local Agency Investment Fund LTD Long Term Disability MOU Memorandum of Understanding MTC Metropolitan Transportation Commission OES Office of Emergency Services OPEB Other-Post Employment Benefits PC Planning Commission PEMHCA Public Employees'Medical and Hospital Care Act PERS (aka Ca1PERS)Public Employees'Retirement System PTA Parent Teacher Association RDA Redevelopment Agency RFP Request for Proposals RFQ Requests for Qualifications RHNA Regional Housing Needs Allocation RMS Records Management System RWQCB Regional Water Quality Control Board UAL Unfunded Actuarial Liability UBC Uniform Building Code VSP Vision Service Plan FY 2022-23 Adopted Budget Budget Guide 62 Revenues, Expenditures, and Fund Balance Table 2020 2021 2022 Adopted 2023 Adopted Category Actual Actual Budget Budget Revenues Taxes - - - - Licenses and Permits - - - - Use of Money and Property - - - - Intergovernmental Revenue - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous Revenue - - - - Interdepartmental Revenue - - - - Total Revenues - - - - Expenditures Employee Compensation - - - - Employee Benefits - - - - Materials - - - - Contract Services - - - - Cost Allocation - - - - Capital Outlay - - - - Special Projects - - - - Contingencies - - - - Total Expenditures - - - - Change in Fund Balance - - - - General Fund Contribution - - - - Taxes—Money received from tax revenue Licenses and Permits—Money received from license and permit fees Use of Money and Property—Interest earnings,facility. and concession rents Intergovernmental Revenue—Funds received from federal,state,or local governments such as grants Charges for Services—Fees collected for services provided by the department Fines and Forfeitures—Money received from fines and penalties Miscellaneous Revenue — Money received from various sources such as donations, salvage, and legal settlements Interdepartmental Revenue—Interdepartmental service charges and transfers Total Revenues—Total of all revenue categories Employee Compensation—Full-time and part-time salaries Employee Benefits—Employee benefits including health insurance and retirement Materials—All material,conference,and training costs FY 2022-23 Adopted Budget Budget Guide 63 Contract Services—All contracted goods and services Cost Allocation—Cost of services from other City departments and depreciation expenses Capital Outlay—Land,buildings,vehicles,infrastructure,and assets used in operation beyond one year Special Projects—One-time projects or costs Contingencies—Funds for unexpected expenses and emergencies Total Expenditures—Total of all expenditure categories Change in Fund Balance— Total Revenues minus Total Expenditures plus General Fund Contribution. Fund balance is the difference between assets and liabilities. General Fund Contribution—Use of General Fund fund balance, for programs in the General Fund, or use of transfers from the General Fund,for programs not in the General Fund. The inclusion of current and historical "actual" and "budget" information is a necessary component of the Government Finance Officer's Association (GFOA) reporting requirements. Due to the extensive amount of financial data, it is important to understand the meaning of these tables. "Actual" data represents actual revenues or expenditures that have been recognized or incurred in the respective fiscal year.Although amounts were budgeted in those years, these actual amounts are irrespective of the budget which should be taken into account when comparing historical actuals with current budgeted figures. Historical budget versus actual information for the last 4 fiscal years at the account detail level is available in the Appendix on the City's budget website(cupertino.org/budget). FY 2022-23 Adopted Budget Budget Guide 64 Community Profile FY 2022-23 Adopted Budget Community Profile 65 This page intentionally left blank. FY 2022-23 Adopted Budget Community Profile 66 History "This place of San Joseph Cupertino has good water and much firewood, but nothing suitable for a settlement because it is among the hills very near to the range of cedars which I mentioned yesterday,and lacks level lands." When Spanish explorer San Juan Bautista De Anza traveled through California in 1776, he and his party documented these words about the land surrounding Stevens Creek, named back then Arroyo San Joseph Cupertino. However, first impressions can often be misleading. Underneath the spiny, overgrown bush was a completely different land waiting to be uncovered. During this time, the area was populated by Native Americans who hunted and gathered,prospering from the abundant resources the land had to offer. It wasn't until 1848 when the first American settler, Elijah Stephens, a blacksmith from South Carolina, moved to the area—at this time, named simply 'West Side' and primarily owned by the government. After crossing over the Sierra Nevada in wagons,he discovered the true value of the land underneath the bush and proceeded to purchase over 300 acres of farmland to grow grapes and blackberries. Stephens pioneered the way for farmers, which established West Side as an agricultural hot spot. The land Stephens owned eventually became Blackberry Farm,and the road,creek,and reservoir were all named after him,although misspelled. In the early West Side,many of the newest advances in agriculture were being developed. Settlers were drawn to the land because of its rich earth, where they were able to grow products that competed on the world market. Once the bush had been cleared,they grew grapes,which covered the West Valley area with vineyards by the late 1800s. By the 1900s, a plant louse called Phylloxera spread throughout the vineyards, attacking the roots of the grapevines, killing the grapes, and putting a halt to wine production. As a solution, nearly everything was replanted with fruit orchards. When the fruit trees blossomed, visitors would come to the orchards for "The Valley of Heart's Delight" festivals, which celebrated the prosperous agriculture of the West Valley area. Apart from the farmland, West Side was primarily known as a crossroads, an intersection between Saratoga- Sunnyvale Road and Stevens Creek.This served as a way station for travelers to pass through while going from town to town.As more people came to West Side to take advantage of the rich farmland,more family holdings gathered around the crossroads. Starting off as just a post office and home union store, West Side's humble crossroads brought many diverse communities,all attracted by the preferable climate and profitable market for crops. As more people were drawn to the area around the crossroads, the orchards were gradually replaced with modern houses for workers.The population steadily grew,and the face of West Side changed,progressing into a more modern town. The community wanted to rename the city, so as to not confuse it with other cities, as well as establish a unique identity. John T. Doyle, a lawyer from San Francisco, and writer of historical anthologies on the area chose the name"Cupertino" after the original name of the creek. After the post-World War II population boom, the growing community petitioned for Cupertino to become an incorporated town. Members of the community were worried that the alternative to incorporation was to have parts of Cupertino annexed by surrounding cities, splitting up the community and erasing the local culture. To preserve the rural atmosphere, lower taxes for farmers, start a local government, and prepare for growth, Cupertino voted for incorporation.In 1955,Cupertino officially became the 13th city in Santa Clara County. By the 1970s, Cupertino once again began to undergo dramatic changes. The growing community attracted several large technology corporations. Lockheed Martin, HP, Intel, and many other big names established themselves in Silicon Valley.Apple Inc.was founded in Cupertino in 1976 and quickly grew into the tech giant it's known for today. FY 2022-23 Adopted Budget Community Profile 67 a, Apple Park Visitor Center In the late 20th century,Cupertino and the surrounding areas experienced another surge in population growth, this time due to the immigration of people from Asian countries. Immigration laws at the time were in the favor of families looking to move to Silicon Valley. People immigrated here for a variety of reasons—whether they were aspiring for career prospects with major tech companies, or striving for quality education for their children, everyone who immigrated here had a common goal: to find opportunities to work hard for a better life for themselves and their families. FY 2022-23 Adopted Budget Community Profile 68 Community Economic Profile Cupertino, with a population of 66,274 and City limits stretching across 13 square miles, is considered one of the most prestigious cities to live and work in the Bay Area. Economic health is an essential component to maintaining a balanced city, which provides high-level opportunities and services that create and help sustain a sense of community and quality of life. Public and private interests must be mutual so that success as a partnership is a direct reflection of success as a community. The cornerstone of this partnership is a cooperative and responsive government that fosters residential and business prosperity and strengthens working relationships among all sectors of the community. Because Cupertino is a mature, 93% built-out city, the City of Cupertino focuses on business retention and revitalization. Cupertino is world-renowned as the home to high-tech giant Apple, Inc., and as a community with stellar public schools. De Anza College, one of the largest single-campus community colleges in the country, is another major employer and a magnet for attracting local and international students. The City's proactive economic development efforts have resulted in an innovative environment for start-ups and growing companies to thrive, including Bromium, DURECT, SugarCRM, Panasonic Venture Group, Altia Systems, Mirapath, Aemetis Inc, Mist Systems, and Plus. The City strives to retain and attract local companies through active outreach and a responsive and customer-oriented entitlement process. Cupertino is excited to have a number of new mixed-use development projects offering more retail and dining options,as well as providing additional housing opportunities to meet the needs of the growing community. f f i y _41*4 �1 � 1 a Main Street The Main Street and Nineteen800 mixed-use developments have created a vibrant downtown area for Cupertino, offering a large selection of restaurants and retailers, including Alexander's Steakhouse, Eureka!, Oreri s Hummus, Lazy Dog, Ippudo, Pasta Armellino, HaiDiLao Hot Pot Restaurant, Pineapple Thai, Pressed Juicery,Orangetheory,85 Degree Bakery, SomiSomi, Sul&Beans, Kura Sushi,Vitality Bowls, La Pizzeria, Tan- cha, Koja Kitchen, Bishops Cuts & Colors, Capezio, Howard's Shoes, and Meet Fresh. Housing, office, and the Residence Inn by Marriott are available to support the thriving area. FY 2022-23 Adopted Budget Community Profile 69 Serving as a long-time retail anchor for the community,The Marketplace has a variety of stores and restaurants popular with students, families, and working professionals. They include Galpao Gaucho, Daiso, Marukai Groceries, Harumi Sushi, La Patisserie Bakery, Beard Papa's, Legend's Pizza, Icicles, Kong's Tofu &BBQ, Rori Rice,One Pot Shabu Shabu,Olarn Thai,and Erik's DeliCafe to name a few. Cupertino Village is undergoing renovations to upgrade existing buildings, construct new buildings, parking, and open-courtyard space. The shopping center is home to 99 Ranch Market, Duke of Edinburgh Pub & Restaurant, JSJ Street Kitchen, Kira Kira Beauty, MOD Pizza, Ten Ren Tea, Fantasia Coffee & Tea, Kee Wah Bakery, Happy Lemon, and many other Asian restaurants, bakeries, and shops. The property owners have received approval to construct a new full-service boutique hotel with 185 rooms to accommodate business and leisure travelers. Cupertino features many other retail opportunities,including TJ Maxx and Home Goods,Whole Foods,Target, Party City, and over 180 restaurants to serve residents and the local workforce. There are now seven hotels providing over 1,000 rooms, to serve the area: The Aloft Cupertino, Cupertino Hotel, Hilton Garden Inn,Hyatt House,Juniper Hotel operated by Curio,Marriott Courtyard,and Residence Inn by Marriott. Another longtime retail anchor in north Cupertino is Homestead Square Shopping Center, located at Homestead Road and De Anza Boulevard. This shopping center includes a 24-hour Safeway,Ulta Beauty,Ross Stores, Pet Club, Michael's, Rite Aid, FedEx, and numerous restaurants, such as Fish's Wild, Pho Hoa Noodle Soup,Yayoi Teishoku Japanese Restaurant,Starbucks,Chipotle,and financial institutions. Recently approved is the redevelopment of The Oaks Shopping Center site, located off of State Route 85 freeway and across from De Anza College. The Westport Cupertino project will be a mixed-used development consisting of 259 housing units(Rowhouse/Townhomes, senior apartments)35 memory care rooms,and 20,000 square feet of commercial space. IL Apple Park Retail Store Apple Park, Apple's newest corporate campus, features approximately 2.8 million square feet of office and R&D space north of Highway 280 between Wolfe Road and Tantau Avenue. A state-of-the-art Visitors Center, Observation Deck,flagship retail store,and cafe are open to the public. FY 2022-23 Adopted Budget Community Profile 70 City Profile The City of Cupertino operates as a general law city with a City Council-City Manager form of government. Five council members serve four-year, overlapping terms, with elections held every two years. The Council meets twice a month on the first and third Tuesday at 6:45 p.m. in Cupertino Community Hall. The meeting schedule is available on the City's website, and currently public participation in the Council meetings is available through online remote access. The City has over 200 authorized full-time benefited employee positions.Departments include: . Council and Commissions • Administration • Innovation and Technology . Administrative Services . Parks and Recreation • Community Development . Public Works • Public Safety services are provided by the Santa Clara County Sheriff's Department and the Santa Clara County Fire District. Assisting the City Council are several citizen advisory commissions and committees,including: . Audit Committee . Bicycle Pedestrian Commission . Design Review Committee • Environmental Review Committee • Economic Development Committee • Fine Arts Commission . Housing Commission • Legislative Review Committee • Library Commission . Parks and Recreation Commission • Planning Commission . Public Safety Commission • Sustainability Commission • Teen Commission . Technology,Information and Communications Commission The Commissioners are appointed by Council, and vacancies are announced so interested residents can apply for the positions.For more information,visit cupertino.org/commissions. Housing Based on data from CoreLogic, the median sales price for an existing single-family home was $2,280,000 in February 2022.For housing programs in Cupertino,please see"Programs&Applications." Community Health Care Facilities Cupertino is served by a number of private medical practitioners and El Camino Health Urgent Care. Nearby hospitals include Kaiser Permanente Medical Center in Santa Clara, Valley Health Center in Sunnyvale, El Camino Hospital in Mountain View, O'Connor Hospital in San Jose, Community Hospital of Los Gatos, Stanford Hospital in Palo Alto,and the Saratoga Walk-in Clinic in Saratoga. FY 2022-23 Adopted Budget Community Profile 71 Utilities Utility Company Phone Number Gas&Electric Pacific Gas and Electric 800-743-5000 Phone AT&T residential service 800-894-2355 Phone AT&T business service 800-750-2355 Cable Comcast 800-945-2288 Solid Waste&Recycling Recology 408-588-7200 Water San Jose Water Company 408-279-7900 Water California Water Service 650-917-0152 Sewer Service Cupertino Sanitary District 408-253-7071 Tax Rates and Government Services Residential,commercial,and industrial property is appraised at full market value as it existed on March 1,1975, with increases limited to a maximum of 2% annually. Property created or sold since March 1, 1975, bears full cash value as of the time created or sold, plus the 2% annual increase. The basic tax rate is $1.00 per $100 (full cash value) plus any tax levied to cover bonded indebtedness for the county, city, school, and other taxing agencies.Assessed valuations and tax rates are published annually after July 1. Assessed Valuation(Secured and Unsecured)as reported in the Santa Clara County 2021-2022 Annual Report: . Cupertino:$26,198,594,820 • County:$563,781,977,403 Retail Sales Tax Distribution Agency Sales Tax Distribution State 6.000% VTA 1.125% City of Cupertino 1.000% County General Purpose 0.750% County Transportation 0.250% Total 9.125% Transportation Rail:The CalTrain station is four miles north of Cupertino.The Amtrak station is 10 miles south. Air: The San Francisco International Airport is located roughly 30 miles north, and the Mineta San Jose International Airport is located approximately 11 miles south. FY 2022-23 Adopted Budget Community Profile 72 Bus: Cupertino is served by the Santa Clara Valley Transportation Authority. The routes listed below pass through the City.For Cupertino-specific schedules and maps visit their online website: • Route 23 San Jose—Mountain View/Palo Alto • Route 25 San Jose—De Anza College • Route 26 Eastridge—Lockheed • Route 36 East San Jose—Vallco • Route 51 Vallco—Moffett/Ames • Route 53 Westgate—Sunnyvale • Route 55 De Anza—Great America • Route 81 East San Jose—Vallco • Express 101 Camden/Branham—Palo Alto • Express 501 Palo Alto—I.B.M Bailey Car: The City of Cupertino is in the heart of the world-renowned Silicon Valley. The major highway transportation facilities are Interstate Route 280 and State Route 85 freeways. The City is linked internally by several principal arterials and Santa Clara County expressways. Principal arterials are De Anza Boulevard, Stevens Creek Boulevard, and Wolfe Road. Nearby expressways are Lawrence Expressway and Foothill Expressway. Sister Cities The City of Cupertino recognizes the value of developing people-to-people contacts by strengthening the partnerships between the city and its four sister cities of Copertino, Italy; Hsinchu, Taiwan; Toyokawa,Japan, and Bhubaneswar, India. Cupertino's Sister City partnerships have proven successful in fostering educational, technical,economic,and cultural exchanges.Over the years,there have been many delegations visiting both the cities as well as many local students participating in annual student exchange programs. Al ITALY 5.3 LES ,. t I 'xcr f v , Cupertino Sister Cities Sign FY 2022-23 Adopted Budget Community Profile 73 Education Winners of numerous state and national awards for excellence, Cupertino's schools are widely acknowledged as models of quality instruction. Cupertino Union School District serves over 18,000 students in a 26 square mile area that includes Cupertino and portions of five other cities. The district has 20 elementary schools and five middle schools, including several choice programs. Eighteen schools have received state and/or national awards for educational excellence. Student achievement is exceptionally high. Historically, district test scores place Cupertino among the premier public school districts in California. The district is a leader in the development of standards-based system of education and is nationally recognized for leadership in the use of technology as an effective tool for learning. Quality teaching and parent involvement are the keys to the district's success. The Fremont Union High School District serves 10,000 students in a 42 square mile area covering all of Cupertino, most of Sunnyvale, and portions of San Jose, Los Altos, Saratoga, and Santa Clara. The five high schools of the district have garnered many awards and recognition based on both the achievement of students and the programs designed to support student achievements. Many high schools in the district exceed their established achievement targets for the State Academic Performance Index. District students are encouraged to volunteer and provide service to organizations within the community. During their senior year, if students complete 80 hours of service to a non-profit community organization, they are recognized with a "Community Service Award"medal that may be worn at their graduation ceremonies. Building on its tradition of excellence and innovation, De Anza College challenges students of every background to develop their intellect, character, and abilities; to achieve their educational goals; and to serve their community in a diverse and changing world. 4 i a 1 r. w De Anza College Campus De Anza College offers a wide range of quality programs and services to meet the workforce development needs of our region. The college prepares current and future employees of Silicon Valley in traditional classroom settings and customized training arranged by employers. Several De Anza programs encourage FY 2022-23 Adopted Budget Community Profile 74 economic development through college credit courses, short-term programs, services for manufacturers, technical assistance, and/or recruitment and retention services. De Anza College is the top Silicon Valley college in numbers of students transferring to four-year schools, and is always at or near the top statewide, earning it the distinction of, "Tops in Transfer." FY 2022-23 Adopted Budget Community Profile 75 Programs and Applications Community Outreach Programs Leadership 95014 Leadership 95014 is a program designed by the City of Cupertino, Wilfred Jarvis Institute, and other local sponsors to offer an exciting adult program that is guaranteed to enhance the participants' leadership skills. The ten full-day sessions feature inside looks at local governments, the social sector, local non-profit organizations, and educational institutions. This 9-month program is offered annually, September to May, and applications can be found online. Neighborhood Block Leader Program Good neighborhoods are those where neighbors work together on common issues and look out for each other. Block leaders take extra steps to connect neighbors and build community,making our neighborhoods safer and more resilient. The Block Leader Program teaches residents how to get to know their neighbors and how to organize activities so neighbors can more easily communicate with each other. Block leaders are vital links between City Hall and the neighborhoods. r 4 A Neighborhood Block Leader Program Neighborhood Watch Neighborhood Watch enlists the active participation of citizens in cooperation with law enforcement to reduce crime in our communities. The program involves: neighbors working together in a program of mutual assistance; citizens being trained to recognize and report suspicious activities in their neighborhoods; and implementation of crime prevention techniques such as home security. To organize a Neighborhood Watch program in your neighborhood,please contact the Neighborhood Watch Coordinator at 408-777-3177. eCAP Email Community Alert Program(eCAP)was created by the Santa Clara County Sheriff's Office to prevent and reduce crime by raising community awareness, minimizing opportunities for crime, and increasing the possibility of solving crimes with the public's help. Cupertino residents may voluntarily register their email addresses with the Sheriff's Office for community alert messages. Citizens can sign-up at a Neighborhood Watch meeting or log-on to the City of Cupertino's eCAP online registration. FY 2022-23 Adopted Budget Community Profile 76 Affordable Housing:BMR(Below Market Rate)Program The City of Cupertino requires 15% of all new construction be affordable to households below 120% of the County median income. Rental units are affordable to very low and low-income households while ownership units are affordable to median and moderate-income households. The City of Cupertino contracts with Hello Housing to screen and place qualified households in most of the city's BMR units. Hello Housing maintains a waiting list of interested persons for these BMR units. For more information, visit the website at www.hellohousing.org/stewardship/cupertino/faq or call (415) 863-3036 (messages returned within 36-48 hours). Smart Phone Applications Cupertino Connect:One App for Everything Are you looking for the latest Cupertino news, events, and important updates? Do you need to apply for a permit or submit a service request?Look no further than Cupertino Connect—a new app that gives you a one- stop app where all the City's services are at your fingertips. Phone screen space is limited, and this update consolidates all the City apps on your phone into one. With the Cupertino Connect app, you can find exactly the information you're looking for. From COVID-19 updates, to election information, and even data on the trees in your neighborhood, you can find it all in one place.Notice an issue that you want to bring to the City's attention?Whether it's a roadway concern,landscape issue, or complaint,you can now submit Cupertino 311 requests through the Cupertino Connect app! It's easier than ever to select the type of issue,select a location,attach any photos,and submit your request for service. To download the app, search for "Cupertino Connect" in the app store. For more information, visit https://www.cupertino.org/our-city/advanced-components/cupertino-311 lm Eats 95014 Eats 95014 is the local restaurant app that showcases Cupertino's dining options such as restaurants, grocery stores, farmers' markets, and vineyards. The app provides information on the services offered at such eating places including store hours,parking information,noise level,directions,and website link. Ready 95014 Ready 95014 is an app that puts safety information into the hands of Cupertino residents. Steps to prepare and respond to emergencies including earthquakes, floods, fires, and pandemics are outlined in an easy-to- understand format. The app also streams Cupertino's own AM radio station (1670 AM) and has a map of the City's Area Resource Centers,satellite locations opened after disasters to provide public assistance. FY 2022-23 Adopted Budget Community Profile 77 READY 95014 Website Applications Cupertino.org/ShopAndDine This interactive website app offers users mapping features of current Cupertino businesses and restaurants. FY 2022-23 Adopted Budget Community Profile 78 Community Statistics Facts and Figures 1 Population in City Limits 66,274 Average Household Income $259,061 Average Age 40.6 Registered Voters 32,737 Democrats 14,965 Republicans 4,408 American Independent 463 Other 369 No Political Party Designated 12,532 1 Claritas 2021 Estimates and County of Santa Clara Registrar of Voters as of March 11,2022 Top 25 Sales Tax Producers 2021 On Alphabetical Order)2 . 99 Ranch Market . Alexander's Steak House • Alliance . Apple . Argonaut Window&Door . Benihana • BJ's Restaurant&Brewhouse • California Dental Arts • Chevron • Galpao Gaucho • Haidilao Hot Pot • Insight Direct • Insight Public Sector . Kura Revolving Sushi Bar • Lazy Dog Cafe • Mirapath . Rotten Robbie • Safeway • Shane Company . Target • TJ Maxx • Toter . Trail Head Cyclery • Valero • Whole Foods Market 2 HdL Companies 3Q 2021 (July-September) Sales Tax Update FY 2022-23 Adopted Budget Community Profile 79 Population by Single Classification Race American Indian and Alaska Native Alone Native Hawaiian and Other 0.20% Pacific Islander Alone 0.10% Black or African American Alone 0.60% Some Other Race Alone 1.70% Two or More Races 3.40% `Asian Alone / 69.70% White Alone 24.30% Source:Clantas 2021 Estimates FY 2022-23 Adopted Budget Community Profile 80 Community and Recreation Services Blackberry Farm Blackberry Farm is centrally located within the Stevens Creek corridor and has natural habitat for native trees, animals, and fish. The park includes an on-site cafe, pools,bocce ball, horseshoe courts, volleyball courts, and picnic areas with multiple sites for groups up to 400 people.The park is located at 21979 San Fernando Avenue. Telephone:408-777-3140. Blackberry Farm Golf Course The Blackberry Farm Golf Course is a nine-hole facility with a Par of 29 and is set along the bank of Stevens Creek with narrow tree lined fairways and small greens. The course is located at 22100 Stevens Creek Boulevard.Telephone:408-253-9200. Quinlan Community Center The Quinlan Community Center is a 27,000 square foot facility that provides a variety of recreational opportunities, rental spaces, hosts classes and programs for all ages, and houses the Cupertino Historical Museum.The center is located at 10185 North Stelling Road.Telephone:408-777-3120. Cupertino Sports Center The Sports Center features 17 tennis courts,two racquetball courts, complete locker room facilities,teen center, and a fully-equipped fitness center featuring free weights, strength training equipment, and cardio equipment. The center is located at 21111 Stevens Creek Boulevard.Telephone:408-777-3160. Cupertino Senior Center The Senior Center provides opportunities for adults over the age of 50, including volunteering and various classes such as exercise, computer, English as a second language, and cultural and special interest. The center also coordinates trips and socials. The Senior Center is located at 21251 Stevens Creek Boulevard. Telephone: 408-777-3150. Civic Center and Library The Civic Center complex has a 6,000 square foot Community Hall, plaza with fountain, trees, and seating areas. City Council meetings, Planning Commission sessions, and Parks and Recreation Commission sessions are held in the Community Hall.The center is located at 10350 Torre Avenue.Telephone:408-777-3120. The Cupertino Library continues to be one of the busiest libraries in the Santa Clara County Library system. The library is located at 10800 Torre Avenue.Telephone:408-446-1677. McClellan Ranch Preserve McClellan Ranch is an 18-acre preserve that houses the original ranch house,milk barn,livestock barn, and two historic buildings, including the Baer's Blacksmith Shop and the old water tower from the Parish Ranch, Environmental Education Center, and Community Gardens. The preserve is located at 22221 McClellan Road. Telephone:408-777-3149. FY 2022-23 Adopted Budget Community Profile 81 Things To Do and See Euphrat Museum of Art The highly regarded Euphrat Museum of Art, at its new location next to the new Visual Arts and Performance Center at De Anza College, presents one-of-a-kind exhibitions, publications, and events reflecting the rich diverse heritage of our area. The Museum prides itself on its changing exhibitions of national and international stature emphasizing Bay Area artists. Museum hours are 10 a.m. — 3 p.m. Monday through Thursday. Telephone:408-864-5464 Euphrat Museum of Art Apple Park Visitor Center,Store &Cafe A state-of-the-art Visitors Center,Observation Deck, flagship retail store, and cafe are open to the public seven days a week.The Visitor Center is located at 10600 N Tantau Avenue. Free parking is available.For more information,visit the website at www.apple.com/retail/appleparkvisitorcenter or call 408-961-1560. Fujitsu Planetarium The Fujitsu Planetarium on the De Anza College campus is a must-visit Cupertino facility for stargazers. It hosts a variety of planetarium shows and events,including educational programs for school groups and family astronomy evenings. For more information, visit the website at http://planetarium.deanza.edu or call 408-864- 8814. Cupertino Historical Society The Cupertino Historical Society was founded in 1966 by a group of 177 longtime residents and is dedicated to the preservation and exhibition of the city's history. Their museum,located at the Quinlan Community Center, develops and expands the learning opportunities that it offers to the ethnically diverse community of the City of Cupertino.Telephone:408-973-1495. Farmers'Markets There are two farmers'markets located in the City of Cupertino. One is held on Fridays from 8:30 a.m. to 1:00 p.m. at Creekside Park located at 10455 Miller Avenue, and the other is held every Sunday from 9:00 a.m. to 1:00 p.m. at the Senior Center/Memorial Park parking lot,behind 21251 Stevens Creek Blvd. FY 2022-23 Adopted Budget Community Profile 82 California History Center The California History Center and Foundation is located on the De Anza College campus. The center has published 37 volumes on California history and has a changing exhibit program. The center's Stocklmeir Library Archives boast a large collection of books, pamphlet files, oral history tapes, videotapes, and a couple of thousand student research papers. The library's collection is for reference only. Heritage events focusing on California's cultural and/or natural history are offered by the center each quarter. For more information, call 408-864-8987. The center is open September through June, Tuesday through Thursday, from 9:30 a.m. to noon and 1:00 p.m.to 4:00 p.m. Local Wineries The Santa Cruz Mountains have played a pivotal role in the history of winemaking in California, with roots going back over 100 years, and including legendary winemakers such as Paul Masson, Martin Ray, David Bennion(Ridge), and David Bruce.The Santa Clara Valley Wine Trail features wineries in the southern portion of Santa Clara County,including Cupertino. Take some time to enjoy Cupertino-based wineries: Fellom Ranch Vineyards, Naumann Vineyards, Picchetti Winery, R&W Vineyards,Ridge Vineyards, and Vidovich Vineyards, as well as the breathtaking scenery of the surrounding foothills. TL } Photo courtesy of Ridge Vineyards FY 2022-23 Adopted Budget Community Profile 83 This page intentionally left blank. FY 2022-23 Adopted Budget Community Profile 84 Financial Policies FY 2022-23 Adopted Budget Financial Policies 85 This page intentionally left blank. FY 2022-23 Adopted Budget Financial Policies 86 Annual Budget Process Adopted Budget The City Council annually adopts a budget by resolution for the upcoming fiscal year. The adopted budget—a policy document, financial plan, operations guide, and communications tool—authorizes expenditures for the activities and funds specified in the budget.It is the basis of the City's financial planning and control. Budget Process The City's annual budget follows a July 1 to June 30 fiscal year. However, the budget process continues throughout the year,including phases of: • Development . Proposal • Adoption • Monitoring . Amendment • Carryover Development Budget development begins in December with the base budget, where ongoing operational costs are reviewed and adjusted.The base budget does not include any one-time initiatives.Departments must justify all new costs each year. Proposal In March, departments develop budget proposals for new ongoing or one-time initiatives. Department budget proposals are reviewed by Finance staff using data on current and prior year trends. Budget decisions are guided by a long-term financial forecast. The financial forecast helps identify revenue and expenditure trends that may have an immediate or long-term effect on the City's fiscal health. The City Manager reviews the proposals with the Director of Administrative Services and department staff and approves proposals to be included in the Proposed Budget.The Proposed Budget is published by May 1. In May, staff presents the Proposed Budget to City Council at a proposed budget study session. Boards, Commissions,community organizations, and the public can comment on the budget.During the study session, City Council provides comments,questions,and recommendations to staff regarding the Proposed Budget. Adoption In June, City Council considers the Proposed Budget at a public hearing. Staff presents an updated Proposed Budget and responds to City Council's questions and recommendations from the study session. Then, City Council deliberates and votes to adopt the budget. By adopting the budget, City Council authorizes expenditures for the activities and funds specified in the budget.The adopted budget takes effect on July 1. Monitoring After the budget is adopted, the City enters the budget monitoring phase. Throughout the year, departments monitor their budgets to ensure spending does not exceed the budget. In addition to the annual proposed and adopted budget, staff reports to the City Council quarterly. Quarterly reports update City Council on any changes from July 1 through the end of the quarter.Quarterly reports help: FY 2022-23 Adopted Budget Financial Policies 87 • Compare budget versus actuals. . Forecast year-end results. . Demonstrate the City is on track to end the year within budget. • Update City Council on any changes to the budget. . Amend the budget to account for any unforeseen changes. If amendments to the budget are required outside of this cycle, staff can seek approval through the budget amendment process(see next section). Amendment After the budget is adopted, a department may request a change through a budget amendment. A budget amendment is required to: • Allocate additional appropriations during the fiscal year . Reallocate appropriations between line items during the fiscal year Adjustments to expenditures within or between departmental budgets are accomplished on an as-needed basis administratively throughout the year. The City Manager and Department Heads can transfer funds between their accounts and/or programs as needed. City Council approval is required for additional appropriations from fund balances or from new revenue sources. Carryover Unexpended and unencumbered appropriations expire at the end of the fiscal year. A budget carryover allows an unspent appropriation to be carried over into the next fiscal year. A department may request a budget carryover for a project or purchase that is not expected to be completed in the current fiscal year. The department may only use the budget carryover for its original purpose. Budget Reporting Cycle The following chart illustrates the City's budget reporting cycle. Proposed Budget May "Sk Third Quarter Adopted Budget May June/July S R Mid-Year First Quarter February/March November lq%ftlwo FY 2022-23 Adopted Budget Financial Policies 88 Structure of City Finances Cost Accounting Fund costs are allocated to user departments or operating funds based on salaries, equipment and software purchase price, actuarial studies, and actual and projected service level.The City of Cupertino has five internal service funds: Innovation & Technology, Vehicle & Equipment Replacement, Workers' Compensation, Compensated Absences & Long Term Disability, and Retiree Medical, whose costs are allocated to City departments. Please view the Cost Allocation Plan and Internal Service Fund section of this document for details. Other employee fringe benefits such as medical, dental, life insurance, and pensions are directly added to department costs as a percentage of salaries. Staff salary and benefit costs are split among departments and related funds based on the anticipated percentage of time spent working in various departments. Cost Allocation Plan All overhead costs are allocated to the appropriate program within the limits of local, state, and federal laws. Beginning in FY 2013-14, the City allocated indirect and overhead costs based on a Cost Allocation Plan(CAP). In FY 2015-16, Matrix Consulting Group developed a full CAP for the City. Matrix Consulting Group developed the plan based on "Generally Accepted Accounting Principles" (GAAP) and indirect cost allocation methods defined by the federal Office of Management and Budget's(OMB)Circular A-87. In addition to the direct cost of providing services, the City has indirect costs. Indirect costs include shared expenses where a department provides support to other departments (e.g.,legal, finance,human resources, IT, facilities, and maintenance). The CAP allows the City to understand the full cost of providing specific services to the community more accurately. For example, the full cost of the Quinlan Community Center includes its direct costs (e.g., salaries, benefits, materials, and contracts) plus its indirect costs (e.g., finance, human resources, and IT). The CAP helps the City analyze the full cost of the Quinlan Community Center as if it were a stand-alone business that had costs for services such as finance,human resources,and IT. The CAP distributes the allowable costs of central service programs to receiving programs. Central service programs (e.g., City Manager's Office, City Attorney's Office, Finance, Human Resources, Innovation and Technology,and City Hall building maintenance)provide support to other programs.Receiving programs,also known as grantees,receive support from central service programs. Method The CAP follows the double step-down method,which uses two steps to allocate costs fully.In the first step,the costs of central service programs are allocated to other central service programs and receiving programs. In the second step, the total costs (including costs allocated in the first step) of central service programs are allocated to the receiving programs only. Revenues are allocated directly to the central service program providing the service. The CAP allocates costs to receiving programs based on an allocation base, which quantifies the use of each service.For example, . Human Resources benefits costs are allocated based on each program's number of FTE. . Accounting costs are allocated based on each program's number of financial transactions. • IT costs are allocated based on the number of computer and mobile devices assigned to each program. The CAP is updated annually.The FY 2022-23 CAP was prepared using data from FY 2020-21. FY 2022-23 Adopted Budget Financial Policies 89 Basis of Budgeting The basis of budgeting refers to the method used to recognize revenues and expenditures in the budget.For the City of Cupertino,the basis of budgeting is the same as the basis of accounting. Governmental Funds The Governmental Funds, which include the General, Special Revenue, Debt Service, and Capital Projects funds,use a modified accrual basis. The modified accrual basis uses a current financial resources measurement focus. As a result, only current assets and current liabilities and deferred outflows of resources and deferred inflows of resources generally are included. Under the modified accrual basis, revenues are recognized when they become "susceptible to accrual,"which means they are both measurable and available. Measurable means the transaction can be determined. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For example, revenues from property taxes are determined to be available if collectible within 60 days. Proprietary Funds The Proprietary Funds, which include Enterprise and Internal Service Funds, use a full accrual basis. The full accrual basis uses an economic resources measurement focus. Under the accrual basis of accounting, revenues are recognized when earned, and expenses are recognized when incurred, regardless of the timing of related cash flows. For example, property taxes are recognized as revenue in the year they are levied. Grants are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Departments,Divisions,and Programs The budget is split into ten departments: Council and Commissions, Administration, Law Enforcement, Innovation and Technology, Administrative Services, Parks and Recreation, Community Development, Public Works, Non-Departmental (includes budgets that are not attributable to any specific division), and Capital Improvement Program. These departments are further split into divisions and then programs. The programs within the divisions are balanced at the department level within a given fund. Annual Comprehensive Financial Report (ACFR) The Annual Comprehensive Financial Report(ACFR)is prepared by Crowe LLP,the City's auditors, according to generally accepted accounting principles (GAAP) set by the Governmental Accounting Standards Board (GASB). Citizen Participation The budget study session and budget hearings are public meetings where citizens are allowed to comment on the budget. The public can also provide feedback to two committees: the Fiscal Strategic Planning and Audit Committees. Additionally, the City utilizes OpenGov, an interactive financial transparency portal, to allow the public to view budget and financial data.OpenGov allows the public to search budget and financial data,view trends in revenues and expenditures over time, and drill down into revenues and expenditures by fund, department, or account type.OpenGov can be accessed at cupertino.org/opengov. On April 21,2022, the City hosted its third annual community budget workshop, "Budget&Bites."The Budget Team hosted the event in collaboration with the City's Youth Activity Board.The event taught residents how to use OpenGov to explore the City's financial data. FY 2022-23 Adopted Budget Financial Policies 90 Fund Structure For accounting purposes, a state or local government is not treated as a single, integrated entity but as a collection of smaller separate businesses known as 'funds.' Fund accounting is an accounting system emphasizing accountability rather than profitability. In this system, a fund is a self-balancing set of accounts segregated for specific purposes in accordance with laws and regulations or special restrictions and limitations. The City's finances are structured in a variety of funds that are the basic accounting and reporting entities in governmental accounting. The funds are grouped into two major categories: Governmental and Proprietary Funds.The purpose of each fund is described below. Governmental Funds Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City's expendable financial resources and the related liabilities (except those accounted for in the Proprietary Funds) are accounted for through governmental funds. Governmental funds include General, Special Revenue, Debt Service, and Capital Projects Funds. They are accounted for under the modified accrual basis of accounting. General Fund The General Fund is the primary operating fund for governmental services. The General Fund is a tax- supported fund. General Fund Purpose 100 General The General Fund is used to pay for core services such as public safety, parks and recreation, community development, public works, and a host of other vital services.The revenue used to pay for these services comes primarily from local taxes such as sales tax, property tax, franchise fees, charges for services, and a variety of other discretionary sources. 130 Investment Accounts for activities related to the City's investment portfolio. Special Revenue Funds Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds include the Storm Drain, Environmental Management/Clean Creek, Community Development Block Grant, BMR Housing, Transportation, and Park Dedication funds. FY 2022-23 Adopted Budget Financial Policies 91 Special Revenue Funds Purpose 210 Storm Drain Accounts for the construction and maintenance of storm drain facilities, Improvement including drainage and sanitary sewer facilities. Projects are funded by the Capital Reserve. 215 Storm Drain AB1600 Accounts for AB1600 revenue from development impact fees. Revenues were collected from developers as a result of connections to the storm drainage sewer system. 230 Environmental Accounts for activities related to operating the Non-Point Source Pollution Management/Clean Program.Revenues are from parcel taxes. Creek/Storm Drain 260 Community Accounts for the Federal Housing and Community Development Block Grant Development Block Grant (CDBG) Program activities. CDBG is a federally funded program for housing assistance and public improvements. 261 HCD Loan Rehab Accounts for activities related to Community Development Block Grant (CDBG)rehabilitation loans. 265 BMR Housing Accounts for activities related to the Below Market Rate (BMR) Housing Program. Revenues include BMR Housing Mitigation Fees collected from developers to mitigate the impact of housing needs. Monies in this fund are governed by the program's rules. 270 Transportation Accounts for the City's gas tax, vehicle registration fees, and grant revenues and expenditures related to the maintenance and construction of City streets. All revenue in this fund is restricted exclusively for street and road purposes, including related engineering and administrative expenditures. 271 Traffic Impact Accounts for development impact fees to ensure that new development and redevelopment projects pay their"fair share"to mitigate traffic impacts. 280 Park Dedication Accounts for the activity granted by the business and professions code of the State of California in accordance with the open space and conservation element of the City's General Plan. Revenues are restricted for the acquisition, improvement, expansion, and implementation of the City's parks and recreation facilities. 281 Tree Accounts for revenues from in-lieu tree replacement fees and tree damage and removal fees. The revenues are transferred to the Street Tree Maintenance program to pay for new and replacement trees. FY 2022-23 Adopted Budget Financial Policies 92 Debt Service Funds Debt Service Funds account for financial resources that are restricted, committed, or assigned to expenditures for and payment of principal and interest. Debt Service Funds Purpose 365 Public Facilities Accounts for the payments of principal and interest on certificates of Corporation participation issued to provide for the financing of the Civic Center, Library, Wilson Park,Memorial Park,and other City facilities. Capital Projects Funds Capital Projects Funds account for the acquisition and/or construction of major capital facilities. Capital Projects Funds Purpose 420 Capital Improvement Accounts for activities related to the acquisition or construction of major Projects capital facilities. 427 Stevens Creek Corridor Accounts for the design and construction of the Stevens Creek Corridor Park Park projects. 429 Capital Reserve Reserves to fund future capital improvement projects. Proprietary Funds Proprietary Funds are used to account for "business-type" activities. Proprietary Funds include Enterprise Funds and Internal Service funds.They are accounted for under the full accrual basis of accounting. Enterprise Funds Enterprise Funds are for specific services funded directly by fees charged for goods or services. Enterprise Funds include the Resource Recovery,Blackberry Farm,Sports Center, and Recreation Program funds. Enterprise Funds Purpose 520 Resource Recovery Accounts for activity related to the collection, disposal, and recycling of solid waste. A private company has been issued an exclusive franchise to perform the services. 560 Blackberry Farm Accounts for activities related to operating the City-owned golf course. 570 Sports Center Accounts for the operation and maintenance of the Cupertino Sports Center. 580 Recreation Program Accounts for activities of the City's community center and park facilities. FY 2022-23 Adopted Budget Financial Policies 93 Internal Service Funds Internal Service Funds are for areas where goods or services are provided to other departments or governments on a cost-reimbursement basis. Internal Service Funds include the Innovation & Technology, Workers' Compensation, Vehicle and Equipment Replacement, Compensated Absences & Long Term Disability, and Retiree Medical funds. Internal Service Funds Purpose 610 Innovation& Accounts for the activities related to the maintenance and replacement of the Technology City's technology infrastructure. Equipment is depreciated based on the acquisition or historical costs for the useful life of the asset using the straight- line method. 620 Workers'Compensation Accounts for claims and insurance premiums related to workers' compensation. 630 Vehicle/Equipment Accounts for the purchase and maintenance of fleet and general equipment Replacement having a value greater than$5,000 and an expected life of more than one year. Assets are depreciated based on the acquisition or historical costs for the useful life of the asset and using the straight-line method. 641 Compensated Absences Accounts for accrued leave payouts and the long-term disability insurance &Long-Term Disability program. 642 Retiree Medical Accounts for funds set aside for Other Post-Employment Benefits(OPEB). FY 2022-23 Adopted Budget Financial Policies 94 Revenue Policies PURPOSE To establish revenue policies that assist the City in striving for and maintaining a diversified and stable revenue system to prevent undue or unbalanced reliance on any one source of funds. This revenue diversity will shelter the City from short-run fluctuations in any one revenue source. SCOPE All revenue sources across all funds. POLICY To the extent possible, maximize investment yield while maintaining a high level of liquidity for the City's anticipated capital costs; Identify and recommend sources of revenue necessary to maintain the services desired by the community and to maintain the City's quality of life; Perform ongoing evaluations of existing sources of revenue to maximize the City's revenue base; Recover costs of special services through user fees; Pursue full cost recovery and reduce the General Fund fee subsidy to the degree feasible; Allocate all internal service and Cost Allocation Plan charges to appropriate user departments;and Monitor Enterprise activities remain self-supporting in the long term. FY 2022-23 Adopted Budget Financial Policies 95 Expenditure Policies PURPOSE To establish expenditure control policies through the appropriate internal controls and procedures. Management must ensure expenditures comply with the legally adopted or amended budget. SCOPE All expenditure categories across all funds. POLICY Each Department or Division Manager will be responsible for the administration of their department/division budget.This includes accomplishing the goals and objectives incorporated into the budget and monitoring each department/division budget for compliance with spending limits; Accurately charge expenditures to the appropriate chart of accounts; Maintain operating activities at levels which are offset by revenues; The City will make every effort to control expenditures to ensure City services and programs provided to its citizens and tax payers are cost effective and efficient; Evaluate expenditures at the department and project levels to ensure control; Before the City purchases any major asset or undertakes any operating or capital arrangements that create fixed assets or ongoing operational expenses, the implications of such purchases or arrangements will be fully determined for current and future years; All compensation planning and collective bargaining will include an analysis of the total cost of compensation which includes analysis of salary increases, health benefits, pension contributions, fringe benefits and other personnel costs. The City will only propose operating personnel costs which can be sustained by ongoing operating revenues; Reduce costs and improve productivity through the use of efficiency and effective measures;and Structure debt financing to provide the necessary capital while minimizing future debt service costs. FY 2022-23 Adopted Budget Financial Policies 96 Capital Improvement Policy PURPOSE To establish a Capital Improvement Policy to assist in future planning. SCOPE All anticipated Capital Improvement Projects for the current fiscal year plus four additional fiscal years. POLICY The City will prepare and update a five year Capital Improvement Plan(CIP)encompassing all City facilities; Projects included in the CIP will have complete information on the need for the project (project justification), description and scope of work, total cost estimates, future cost estimates, future operating and maintenance costs and how the project will be funded; An objective process for evaluating CIP projects with respect to the overall needs of the City will be established through a priority ranking of CIP projects. The ranking of projects will be used to allocate resources to ensure priority projects are completed effectively and efficiently; Changes to the CIP such as addition of new projects, changes in scope and costs of a project or reprioritization of projects will require City Manager and City Council approval; The City will maintain its physical assets at a level adequate to protect the City's capital investment and to minimize future operating maintenance and replacement costs. The City recognizes that deferred maintenance increases future capital costs, thus placing a burden on future residents. Therefore, the budget will provide for adequate maintenance and the orderly replacement of capital plant and equipment from current revenues when possible; The City will determine the least costly funding method for its capital projects and will obtain grants, contributions and low cost state or federal loans whenever possible; The City will utilize "pay-as-you-go" funding for capital improvement expenditures considered recurring, operating or maintenance in nature. The City may also utilize "pay-as-you-go" funding for capital improvements when current revenues and adequate fund balances are available or when issuing debt would adversely affect the City's credit rating;and The City will consider the use of debt financing for capital projects under the following circumstances: • When the project's useful life will exceed the terms of the financing • When resources are deemed sufficient and reliable to service the long-term debt • When market conditions present favorable interest rates for City financing • When the issuance of debt will not adversely affect the City's credit rating and debt coverage ratios. FY 2022-23 Adopted Budget Financial Policies 97 Information Technology Replacement and Capitalization Policy PURPOSE The purpose of this policy is to establish guidelines for replacing and capitalizing technology equipment and systems. Replacement is indicated when a product has run its useful life and updating/upgrading is no longer an option.Capitalization of equipment requires the set aside of funding for future replacement. Generally, technology equipment with a life expectancy of at least 5 years and a total cost of over$5,000 shall be capitalized. Software with an expected life of at least 7 years or a cost of over $10,000 shall also be capitalized.Software-as-a-Service(SaaS)contracts are not capitalizable and are expensed as incurred. Technology upgrades are determined by the Innovation Technology Department and user departments based on functionality,vendor support,and industry standards. SCOPE This policy covers the City of Cupertino: • network infrastructure(routers,switches,firewalls,security appliances); . server infrastructure(files servers,database servers,mail servers,web servers,etc); • user laptops and workstations; mission-critical systems, telephone system (telephone equipment not already listed previously); . desktop software; • enterprise software; • workgroup software;and . broadcast video and audiovisual equipment. Cell phones,printers,and tablet devices are not covered by this policy as these items do not meet the minimum criteria for capitalization. Replacement of these items are at the discretion of the Innovation Technology Department in concert with the user Department. POLICY All technology shall be replaced according to the following: Network infrastructure (routers, switches, firewalls) shall be replaced when no longer functional, as determined by the Innovation Technology Department Division (IT), or when parts or support are no longer available from the manufacturer.Replacement needs will be determined by IT annually as part of the operating budget process. Network infrastructure with a life expectancy of at least 5 years and a total cost of over$5,000 shall be capitalized. Server infrastructure shall be replaced when it is no longer functional (defined as not being able to meet its intended purpose), or when parts or support are no longer available from the manufacturer. These needs are evaluated annually by IT and user departments as part of the operating budget process. Servers are evaluated as they approach 3 years in service,and placed on the schedule accordingly.Server lifetime may be extended by the purchase of additional memory or disk. Server infrastructure with a life expectancy of at least 5 years and a total cost of over$5,000 shall be capitalized. FY 2022-23 Adopted Budget Financial Policies 98 User workstations shall be replaced, on average, after 4 years as is industry standard. Zero Client work stations shall be replaced, on average,every 8 years. IT will determine the need for specific replacements. User workstations shall not be capitalized as they do not meet the minimum criteria for capitalization. Interoperable systems are defined as a group of interdependent and/or interoperable components that together form a single functional unit. These components may be interconnected by their structural relationships, their common functional behavior, or by both. Generally, for a system to be eligible for capitalization, the cumulative value of its components should be at least $5,000 and have a life expectancy of five years or more. A common example of such system would be a telephone system or network. Individual component or replacement costs are not capitalizable unless they are greater than$5,000 and increase the value of the asset. Enterprise Software replacement shall be determined individually by IT and the end users. Only those large enterprise systems (on-site or on premise)with an expected life of at least 7 years or a cost of over$10,000 shall be capitalized.SaaS contracts are not capitalizable and are to be expenses as incurred. Desktop Software is replaced/updated according to Microsoft's releases of Windows and Office. Software shall not be more than one version out of date to ensure functionality and vendor support. IT will generally wait at least 90 days after a new release to roll out new versions.Only software with an expected life of at least 7 years or a cost of over$10,000 shall be capitalized.Desktop software generally does not meet this criterion. Broadcast Video and Audiovisual Equipment/Systems shall be repaired or replaced when determined no longer functional. Replacement will occur on average after 10 years. Broadcast video and audiovisual equipment/systems with a life expectancy of at least 5 years and a total cost of over$5,000 shall be capitalized. Equipment that does not meet these criteria may still be capitalized if the item is a component of interoperable systems. FY 2022-23 Adopted Budget Financial Policies 99 Pension and Retirement Funding Policy PURPOSE To establish a policy for the funding of Retirement and Retiree health. SCOPE Retirement and Retiree Health costs citywide,across all funds. POLICY Fund all current pension liabilities on an annual basis;and Monitor certain health and dental care benefits for retired employees. Funding the liability for future retiree benefits will be determined by City Council action. FY 2022-23 Adopted Budget Financial Policies 100 Long Term Financial Stability Policies PURPOSE To establish a policy for Long Term Financial Stability SCOPE All programs across all funds POLICY Ensure ongoing productivity through employee training and retention programs; Pursue consolidation of resources and activities with other agencies and jurisdictions where beneficial; Ensure financial planning flexibility by maintaining adequate fund balances and reserves; Provide for major maintenance and repair of City buildings and facilities on a timely basis; Provide for infrastructure asset preservation that maximizes the performance of these assets at minimum life- cycle costs;and Continually evaluate and implement long-term financial planning including technology automation, multiple year capital improvement programs, revenue and expenditure forecasting, automating and streamlining service delivery,stabilizing and repositioning revenue sources,and decreasing expenditures and risk exposure. FY 2022-23 Adopted Budget Financial Policies 101 Committed, Unassigned Fund Balance, and Use of One Time Funds Policy Purpose To establish assigned and unassigned fund balance and one-time use policies. Scope The General Fund and Capital Funds. Policy To maintain sufficient committed and unassigned fund balance(General Fund only)in each fund for the ability to meet the following economic uncertainties: Economic Uncertainty—$24,000,000 and represents two months of General Fund (GF) expenditures excluding transfers out plus a two year drop in total general fund revenue of 13%or approximately 1.5 months,excluding the use of reserves. Transfers out are primarily used to fund Capital Projects and do not represent on-going expenditures.This assignment will change from year to year based on budgeted general fund expenditures and revenues. . Mitigate short-term economic downturns and volatility in revenues(2 years or less) • Sustain city services in the event of an emergency • Meet requirements for debt reserves . Meet operating cash flow requirements as a result of delay in the receipt of taxes, grant proceeds and other operating revenues PERS— $20,491,004 and represents the initial investment into the City's Pension Rate Stabilization Program (PRSP).As a result of the significant increase in retirement costs based on the most recent actuarial forecast,the City elects to establish and fund a secondary pension trust to assist in stabilizing the potential impact of pension cost volatility on the City's operating budget. Annual contributions subsequent to the initial funding are determined by calculating the difference between Ca1PERS'current discount rate and a more conservative rate determined by the City. This difference is to be transferred to the pension trust and to be used solely for the benefit of members in the plan. Funds in this trust are technically "restricted" under Governmental Accounting Standards Board (GASB) Statement No.54 in that the funds are legally restricted to be used for retirement costs;however,the timing for which these funds may be used is only at the discretion of City Council. Capital Projects— $10,000,000 and represents the amount of General Fund resources readily available to fund future capital projects in the City's Capital Improvement Program (CIP). The City's Capital Projects Funds has a $5,000,000 reserve threshold; however, establishing a secondary reserve in the City's General Fund will enable more efficient and accurate short-and long-term capital budgeting and planning. Sustainability Reserve — Cupertino's Sustainability Division oversees the City's Climate Action Plan (CAP), which defines strategies to reduce greenhouse gas emissions, and provides residents, businesses and schools with programs and services focused on energy efficiency, renewable energy, water conservation, alternative transportation and other sustainable actions. The City receives rebates for projects that successfully meet the FY 2022-23 Adopted Budget Financial Policies 102 eligibility requirements such as energy or water efficiency. If the rebates were not initially budgeted, they are categorized as committed fund balance in the General Fund. The purpose of this reserve is to help support future sustainability projects/programs. Unassigned— $500,000 and represents 1% of the total general fund operating budget. This assignment may change from year to year based on budgeted general fund expenditures. . Absorb unanticipated operating needs that arise during the fiscal year that were not anticipated during the budget process • Absorb unexpected claims or litigation settlements Capital Improvement — $5,000,000 and represents average dollars spent for capital projects in the last three fiscal years. This assignment may change from year to year based on actuals dollars spent on capital projects and anticipated future capital project needs. . Meet future capital project needs so as to minimize future debt obligations The City shall not use fund balances/reserves in lieu of revenues to pay for ongoing expenses except as specifically provided in the City's reserve policy. The chart below summarizes reserve policy levels as described above: Funding Priority Reserve Reserve Level Escalator' Description GENERAL FUND GF Budgeted For economic 1 Economic Uncertainty $24,000,000 Operating 2 downturns and major Expenditures GF revenue changes. Budget Revenue3 g Budgeted 2 PERS $20,491,004 Citywide For pension cost increases. Retirement Costs 3 Capital Projects $10,000,000 None For future capital projects funding. GF Budget For future 4 Sustainability Reserve $127,891 Revenue3 sustainability projects/programs. Budgeted GF For mid-year budget 5 Unassigned $500,000 Operating adjustments and Expenditures2 redeployment into the five year budget. CAPITAL PROJECTS FUNDS 6 Capital Improvement $5,000,000 None Reserves set aside for future capital projects. FY 2022-23 Adopted Budget Financial Policies 103 I Rounded to the nearest hundred thousand 2 Excludes Transfers Out 3 Excludes the use of reserves Changes to Committed Fund Balance — All reserves listed in this policy, with the exception of the PERS restricted reserve, are classified as Committed Fund Balance under GASB Statement No. 54. Committed fund balance is comprised of amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision-making authority. Changes to committed fund balances must be approved by City Council.This policy will be reviewed annually as part of the budget process. Replenishment process —Should the City need to utilize any of the committed fund balances listed in this policy, a recommendation will be brought to City Council for approval and a plan to replenish the committed balance will be developed in conjunction with its use. Excess— Funding of these reserves will come generally from one-time revenues, annual net income, and transfers from other reserves that exceed policy levels. They will be funded in the following priority order with any remaining funds to be placed in the Capital Reserve: 1)Economic Uncertainty 2)PERS 3)Capital Projects 4)Sustainability Reserve 5)Unassigned City Council approved updates to the policy on March 8,2022. FY 2022-23 Adopted Budget Financial Policies 104 Community Funding Policy PURPOSE The City of Cupertino currently provides funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. The policy provides a framework for the City's Community Funding Grant Program and guides the administration of the program and decision-making process. It also provides guidance on key aspects of the City's Community Funding Grant Program processes including:Eligibility,Evaluation Criteria,Restrictions/Guidelines,and Procedure. SCOPE All requests for funding must comply with this policy. POLICY The City has established the Community Funding Grant Program, subject to availability of funds,with a range of $70,000 to $90,000 in total funding available. Community Funding Grants shall not exceed $20,00 per applicant, per year. City Council will determine the organizations to be awarded funds through the Community Funding Grant Program. City Staff shall review applications for completeness and review the qualifications and accuracy based upon the eligibility criteria set forth below. In all cases, the City reserves the right to reject any and all applications in the event staff identifies a potential conflict of interest or the appearance of a conflict of interest. Submission of an application in no way obligates the City to award a grant and the City reserves the right to reject any or all applications,for any reason, at any time. Eligibility To receive consideration for a Community Funding Grant,grant requests must: . Be made or sponsored by a 501(c)(3) non-profit organization with experienced members capable of implementing and managing the program/project/event. . Identify how the funds will be used to benefit the Cupertino community. • Be awarded only once per project • For specific needs,not ongoing,operational costs. • Have more than 75%of the requested funds allocated for direct service costs versus administrative costs. • Be complete and submitted by the application deadline. Evaluation Criteria . Impact on and benefit to the Cupertino community • Community need for the program/project/event • Alignment with City mission and values . Uniqueness of the program/project/event • Qualifications and experience of the organization and its members • Reasonable cost . Demonstrated effort to secure funding from other sources and/or establishing • partnerships with other community or city organizations • Clarity,completeness,and accuracy of grant application . Past performance and compliance with requirements if a recurring applicant Applications will be sorted into two categories: FY 2022-23 Adopted Budget Financial Policies 105 • New applicants . Past recipients Applications in each category will be evaluated using a tiered structure based on the dollar amount requested for award as follows: . <$999.99 $1,000.00-$4,999.99 $5,000.00—$9,999.99 $10,000.00-$20,000.00 Restrictions/Guidelines • An organization that is applying for multiple grants shall only submit one application. . Proceeds generated from the funded activity may only be used for the conducted activity. • If requested,recipients must provide full financial statements for the organization. • Admission to or participation in the event must be "free of charge"for Cupertino residents unless stated in the application and approved by Parks&Recreation Commission. • If an applicant makes a grant request directly to a member of the City Council, whether individually or as a group, the Council shall refer the applicant to the Parks and Recreation Department for a Grant application to be reviewed in accordance with this policy. • Grant recipients shall acknowledge the City contribution in formal promotional materials and efforts related to the funded activity.Any use of the City logo must be approved by the City's Communications Officer. Procedure 1.Applicants submit timely and complete grant applications by February 1. 2. City Staff reviews application for completeness and compliance eligibility. 3.Applications will then be forwarded to the Parks and Recreation Commission to be evaluated and sorted into the tiered funding structure. All applicants will be notified and invited to attend the Parks and Recreation Commission Meeting where their applications will be discussed.This meeting typically takes place in Spring. 4. City Council will make the final decision on grant amounts for each applicant as part of the budget adoption which typically happens in June. All applicants will be notified and invited to attend the City Council Meeting where their applications will be discussed. 5. Grant recipients shall submit a written report to the Parks and Recreation Department to show proof that the grant funds have been spent in the manner and for the purposes stated on the application, including information about the number of persons served and other results that benefit Cupertino. . Due by the 15th business day of July following the Fiscal Year in which grant funds are disbursed. • Failure to submit a written report by the July deadline could result in the loss of grant funding eligibility in the future. . Applicants will be expected to reimburse the City any funding awarded and not used for their program/project/event. FY 2022-23 Adopted Budget Financial Policies 106 Investment Policy The City Council annually updates and adopts a City Investment Policy that is in compliance with State statutes on allowable investments. By policy, the Audit Committee reviews the policy and acts as an oversight committee on investments. The policy directs that an external auditor perform agreed-upon procedures to review City compliance with the policy.City Council approved the City Investment Policy on May 19,2022. FY 2022-23 Adopted Budget Financial Policies 107 Appropriations and Legal Debt Limit Margin Gann Appropriations Limit In 1979,California voters approved Proposition 4,the Gann Initiative,and added Article XIIIB to the California State Constitution. Article XIIIB mandates a limit on the amount of proceeds of taxes that state and local governments can receive and appropriate (authorize to spend) each year. The purpose of this law is to limit government spending by putting a cap on the total proceeds of taxes that may be appropriated each year. Proposition 111 and SB 88, approved by California voters in June of 1990, offered cities more flexibility in choosing inflation and population factors to calculate the limit. Appropriations (Gann Limit) 140,000,000 120,000,000 100,000,000 80,000,00a s0,000,wo 40,000,000 20,000,000 0 tip' tia tih �� ti� ;�� ti� tia titi titi ti� Qti, oti3 oti° oti`' o�� a�� o�� ova oti° otiy ati� ti ti ti ti ti ti ti ti ti ti ti —Appropriations Limit —Appropriations Subject to Limit Fiscal Appropriations Appropriations LimitYear Appropriations1AppropriationsLimit MSubjed1 Limit 2012-13 75,844,982 3,650,684 5.1% 49,965,332 2013-14 80,979,979 5,134,997 6.8% 54,016,316 2014-15 82,005,630 1,025,652 1.3% 59,297,603 2015-16 86,100,308 4,094,677 5.0% 63,005,392 2016-17 91,867,014 5,766,706 6.7% 81,138,846 2017-18 96,028,488 4,161,474 4.5% 82,077,590 2018-19 100,538,305 4,509,818 4-7% 78,411,811 2019 20 104,753,580 4,215,275 12% 84,757,139 2020 21 109,062,934 4,309,354 41% 80,875,397 202122 114,666,491 5,603,558 5.1% 87,322,024 2022 23 122,756,522 8,090,031 7.1% The limit is different for each agency and changes annually. It is calculated by taking the amount of tax proceeds that were authorized to be spent in FY 1978-79 and adjusting for changes in inflation and population each subsequent year. Proposition 111 changed the way the limit is calculated and allowed a City to increase its limit annually in two ways: FY 2022-23 Adopted Budget Financial Policies 108 • By the percent change in per capita personal income in California or the percent change in the assessment roll the preceding year due to the addition of local non-residential new construction;or • By the percent change in county or city population. The City used the following factors from the California Department of Finance. Price Factor (A)Percent Change in California Per Capita Personal Income: 7.55% (Source:Dept of Finance,California) Population Factor • (B)Percent Change in County Population:-0.69% (Source:Dept of Finance,California) • (C)Percent Change in City Population:-0.46% (Source:Dept of Finance,California) The City multiplied the FY 2021-22 appropriations limit by Price Factor (A) and Population Factor (C) to calculate the FY 2022-23 appropriations limit,as shown below: FY 2021-22 Appropriations Limit $114,666,491 Price Factor(A) 1.0755 Population Factor(B) 0.9954 FY 2022-23 Appropriations Limit $122,756,522 The City's FY 2022-23 appropriations limit is$122,756,522,$8.1 million or 7.1%higher than the FY 2021-22 limit of$114,666,491. Legal Debt Margin The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when the assessed valuation was based upon 25% of market value. Effective FY 1981-82, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computation shown below reflects a conversion of assessed valuation data for FY 2020-21 from the current full valuation perspective to the 25%level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the State. FY 2022-23 Adopted Budget Financial Policies 109 Description Amount Formula Secured Property Assessed Value,Net of Exempt Real Property(1) $27,083,468,890 Adjusted Valuation-25%of Assessed Valuation(2) $6,770,867,223 (1)x 25% Debt Limit-15%of Adjusted Valuation $1,015,630,083 (2)x 15% Total City Bonded Debt(3) $19,900,000 Less:Certificates of Participation Not Subject to Debt Limit(4) $(19,900,000) Amount of Debt Subject to Limit - (3)- (4) Legal Debt Margin $1,015,630,083 FY 2022-23 Adopted Budget Financial Policies 110 Financial Schedules FY 2022-23 Adopted Budget Financial Schedules 111 This page intentionally left blank. FY 2022-23 Adopted Budget Financial Schedules 112 N O N Financial Overview by Fund W a Q. 2022-23 Adop 0 Special Revenue Debt Service Capital Project Enterprise Internal Service Revenue Categories General Fund All Funds Fund Fund Funds Funds Funds Sales Tax 31,944,089 - 31,944,089 Property Tax 30,039,574 - 30,039,574 rt Transient Occupancy 5,000,000 - - - - 5,000,000 Utility Tax 2,955,404 - - - - - 2,955,404 Franchise Fees 3,230,101 - - - - - 3,230,101 Other Taxes 1,787,691 8,203,431 - - - - 9,991,122 Licenses&Permits 3,541,012 - - - - - 3,541,012 Use of Money&Property 1,277,013 5,548 - - 700,000 - 1,982,561 Intergovernmental 1,434,491 3,500,224 - - 14,000 - 4,948,715 Charges for Services 11,528,436 1,512,209 - - 5,058,792 4,053,851 22,153,288 Fines&Forfeitures 427,000 68,669 - - - - 495,669 7y Miscellaneous 1,160,437 - - - 10,000 - 1,170,437 �J Transfers In/Other Financing Uses 336,140 3,025,000 2,675,800 2,500,000 399,600 3,855,645 12,792,185 TOTAL REVENUES $ 94,661,388 $ 16,315,081 $ 2,675,800 $ 2,500,000 $ 6,182,392 $ 7,909,496 $ 130,244,137 n. w CA 122-23 Adopted BudgetSpecial Revenue Debt Service Capital Project Enterprise Internal Service Appropriation Fund Fund Funds Funds Funds Employee Compensation 24,295,660 2,050,572 1,786,450 1,803,287 29,935,969 Employee Benefits 11,440fiM 1,037,760 605,466 2,190,096 15,273,958 Materials 7,219,073 1,001,596 - 500,003 1,418,575 10,139,247 Contract Services 25,026,032 1,152,665 265,000 4,804,188 1,798,390 33,046,275 Cost Allocation 10,385,961 1,191,567 - - 789,939 62,042 12,429,509 Capital Outlays - 1,038,000 - 3,345,000 23,600 - 4,406,600 Special Projects 3,657,378 3,742,268 - - 183,553 541,100 8,124,299 Contingencies 451,739 29,681 - - 132,526 80,425 694,371 Transfers Out 11,996,300 - - 23,600 - - 12,019,900 Debt Service/Other Uses 695,000 - 2,675,800 - 177,606 968,791 4,517,197 EXPENDITURES $ $ 11,244,109 $ 2,675,800 $ 3,633,600 $ 9,003,331 $ CHANGE IN FUND BALANCE/ NET POSITION $ (506,391) $ 5,070,972 $ (1,133,600) $ (2,820,939) $ w N O N Flow of Funds Chart (Sankey) W a Revenue By Type Expenditure By Department (where the money comes from) (how money is spent) Revenue by Fund �* Council and Commissions:$1,306.376 1W 11"Oft Administration:$9,848,419 Taxes: $83,160,290 Law Enforcement:$16,814,519 General Fund:$94.661,388 M Innovation Technology,$7,999.979 Frl r Licenses&Permits- 3,541,012 Administ€alive Services. $10,036,464 Use of Money 8 Property:$1,982,561 Parks and Recreation:$13,3$fi,54£ Intergovernmental:$4,948,715 Special Revenue: $16,315.081 Community Development:$13,126.224 m Charges for Services:$22,153,2a8 Debt Service:$2,675,800 Q. - Capital Project Funds:$2.500.000 Fines 8 Forfeitures:$495,869 �.- Public Works: $39,921,995 Miscellaneous:$1,170,437 Enterprise!Funds;$6.182,392 -_ Transfers In;$12,356,040 Internal Service:$7,909,496 Non Departmental;$14.689.603 Other Financing Sources:$436,145 Capital Projects:$3,657,240 The three most important things to learn from this chart: 1. The chart above demonstrates how revenues (left to right) and expenditures (right to left) flow out of and into each type of City fund. 2. Where revenues meet expenditures at the center of the chart (fund line type), a gap to the left is indicative of expenditures exceeding revenue and a decrease in fund balance/savings for that type of fund. 3. A gap to the right is indicative of an increase in fund balance/savings for that type of fund. General Fund Contribution Schedule Type/ProgramAdopted Budget Adopted Budget Adopted Budget Adopted Budget Fund Balance/Net Position Contribution GENERALFUND 10 City Council 100 City Council 830,532 499,627 (330,905) 101 Community Funding - 92,231 92,231 110 Sister Cities - 64,006 64,006 11 Commissions 131 Telecommunication Commission - 39,481 39,481 140 Library Commission - 51,371 - 51,371 142 Fine Arts Commission - 73,624 - 73,624 150 Public Safety Commission - 45,192 - 45,192 155 Bike/Ped Safety Commission - 62,230 - 62,230 160 Recreation Commission - 53,085 - 53,085 165 Teen Commission - 46,076 - 46,076 170 Planning Commission - 121,496 - 121,496 175 Housing Commission - 61,468 - 61,468 180 Sustainability Commission - 60,983 - 60,983 190 Audit Committee - 35,506 - 35,506 12 City Manager 120 City Manager 631,098 2,219,722 - 1,588,624 122 Sustainability Division - 813,464 - 813,464 126 Office of Communications - 1,019,517 - 1,019,517 305 Video 354,821 438,792 - 83,971 307 Public Access Support - 79,249 79,249 632 Comm Outreach&Neigh Watch - 213,823 - 213,823 633 Disaster Preparedness 1,000,000 1,706,493 - 706,493 705 Economic Development - 598,893 - 598,893 13 City Clerk 130 City Clerk 121,651 719,419 - 597,768 132 Duplicating/Mail Services - 49,075 - 49,075 133 Elections - 140,839 - 140,839 14 City Manager Discretion 123 City Manager Contingency - 75,000 - 75,000 15 City Attorney - 141 CityAttomey 362,253 1,574,133 - 1,211,880 20 Law Enforcement - 200 Law Enforcement SC Sherif 1,367,721 16,765,096 - 15,397,375 201 InteroperabilityProject - 49,423 - 49,423 31 I&T Video 305 Video - 574,604 - 574,604 32 I&T Applications - 308 Applications 1,431,322 2,815,258 - 1,383,936 40 Administrative Services - 400 Admin Services Administration 156,003 901,880 - 745,877 41 Finance 405 Accounting 2,105,135 1,745,952 - (359,183) 406 Business Licenses - 473,445 - 473,445 425 Purchasing - 369,240 - 369,240 426 Budgeting - 340,600 - 340,600 44 Human Resources 412 Human Resources 1,706,378 1,520,541 - (185,837) 417 Insurance Administration - 2,034,411 - 2,034,411 60 Recreation&Community Service 601 Rec&Comm Svcs Administration - 1,769,745 - 1,769,745 634 Park Planning and Restoration - - - - 636 Library Services - 600,266 - 600,266 FY 2022-23 Adopted Budget Financial Schedules 115 AdoptedAdopted Fund Type/Program Revenues Expenditures Change in Fund General Fund 111 111 Position 1 I 61 Business and Community Services 602 Administration - 642,068 642,068 605 Cultural Events 31,000 493,143 462,143 630 Facilities 203,660 407,006 - 203,346 62 Recreation and Education 608 Administration 12,500 713,833 - 701,333 623 Youth,Teen and Senior Adult Rec 154,500 1,076,295 - 921,795 639 Youth and Teen Programs 3,800 3X511 - 326,711 640 Neighborhood Events - 154,307 - 154,307 63 Sports,Safety&Outdoor Rec 612 Park Facilities 265,757 1,218,846 - 953,089 615 Administration - 59,668 - 59,668 70 Planning&Community Development 700 Community Development Admin - 1,054,844 - 1,054,844 71 Planning 701 Current Planning 1,037,500 3,132,994 - 2,095,494 702 Mid Long Term Planning 138,750 1,221,488 - 1,082,738 704 Annexations - - - - 705 Economic Development - - - - 72 Housing Services 712 Gen Fund Human Services Grants - 123,965 - 123,965 73 Building 713 General Building 315,000 935,194 - 620,194 714 Construction Plan Check 1,50%000 2,116,415 - 616,415 715 Building Inspection 1,700,000 1,432,502 - (267,498) 718 Muni Bldg Code Enforcement - 84,454 - 84,454 74 Code Enforcement 202 Code Enforcement 225,000 1,246,971 - 1,021,971 80 PW Admin 800 Public Works Admin - 1,158,135 - 1,158,135 82 Developmental Services 804 Plan Review 1,408,348 1,471,996 - 63,648 806 CIP Administration - 1,W4,405 - 1,804,405 83 Service Center 807 Service Center Administration 216,589 1,290,762 - 1,074,173 84 Grounds 808 McClellan Ranch Park - 235,194 - 235,194 809 Memorial Park - 871,977 - 871,977 811 BBF Ground Maintenance - 298,534 298,534 812 School Site Maintenance 144,000 1,634018 - 1,486,018 813 Neighborhood Parks - 2,687,196 - 2,687,196 814 Sport Fields Jollyman CRK - 881,604 - 881,604 815 Civic Center Ground Maint 241,589 180,415 - (61,174) 85 Streets 848 Street Lighting - 1,024,841 - 1,024,841 850 Environmental Materials - 224,137 - 224,137 86 Trees and Right of Way 261 Trail Maintenance - 232,764 - 232,764 824 Overpasses and Medians - 1,802,896 - 1,802,896 825 Street Tree Maintenance 77,966 1,681,931 - 1,603,965 826 Weekend Work Program - 541,776 - 541,776 87 Facilities and Fleet 827 Bldg Maint City Hall 379,100 548,697 - 169,597 828 Bldg Maint library 621,162 667,502 - 46,340 829 Bldg Maint Service Center - 435,665 - 435,665 FY 2022-23 Adopted Budget Financial Schedules 116 Adopted ,,, Adopted Budget Adopted Budget Fund Type/Program Revenues Expenditures Change in Fund GeneralFund Balance/Net Position Contribution 830 Bldg Maint Quinlan Center 638,815 638,815 831 Bldg Maint Senior Center - 616,786 616,786 832 Bldg Maint McClellan Ranch 891 238,267 237,376 833 Bldg Maint Monta Vista Ct - 202,498 202,498 834 Bldg Maint Wilson 104,887 104,887 835 Bldg Maint Portal 69,185 69,185 837 Bldg Maint Creekside 111,461 - 111,461 838 Comm Hall Bldg Maint 255,256 - 255,256 839 Teen Center Bldg Maint 50,100 - 50,100 840 Park Bathrooms 212,702 - 212,702 841 BBF Facilities Maintenance 578,769 - 578,769 852 Franco Traffic Operations Center 17,036 - 17,036 857 City Hall Annex 25,525 - 25,525 88 Transportation 844 Traffic Engineering - 1,530,072 - 1,530,072 845 Traffic Signal Maintenance 8,706 811,350 - 802,644 846 Safe Routes 2 School 661,062 - 661,062 TOTAL DEPARTMENTAL $ 18,752,732 $ 83,153,976 $ - $ 64,401,244 Transfers Out - 12,013,803 - 12,013,803 Non-Departmental Revenues 75,908,656 - - (75,908,656) TOTAL NON-DEPARTMENTAL $ 75,908,656 $ 12,013,803 $ - $ (63,894,853) CHANGE IN FUND BALANCE $ - $ - $ (506,391) $ (506,391) TOTAL GENERAL FUND $ 94,661,388 $ 95,167,779 $ SPECIAL REVENUE FUNDS 001 No Department 1,492,374 - 4,492,374 3,000,000 707 CDBG General Admin 88,356 155,589 (67,233) - 709 CDBG Capital/Housing Projects 340,858 337,558 3,300 710 CDBG Public Service Grants 66,267 61,852 4,415 - 711 BMR Affordable Housing Fund 8,002,202 1,222,398 6,804,804 25,000 802 Non Point Source 1,579,224 1,226,654 352,570 - 820 Sidewalk Curb and Gutter - 1,982,206 (1,982,206) 821 Street Pavement Maintenance 1,720,800 4,587,213 (2,866,413) 822 Street Sign Marking - 829,894 (829,894) 853 Storm Drain Fee 25,528 (25,528) 854 General Fund Subsidy 30,215 (30,215) 855 Storm Drain Maintenance - 785,002 (785,002) - TOTAL SPECIAL REVENUE FUNDS $ 13,290,081 $ 11,244,109 $ 3,025,000 DEBT SERVICE FUNDS 001 No Department - - 2,675,800 2,675,800 500 FacilityLease 2,675,800 (2,675,800) TOTAL DEBT SERVICE FUNDS $ $ 2,675,800111111h $ 2,675,800 CAPITAL PROJECTS FUNDS 001 No Department 23,600 2,476,400 2,500,000 047 CIP Prelim Planning&Design 125,000 (125,000) - 048 Capital Project Support 50,000 (50,000) 007 ADA Improvements 95,000 (95,000) 051 Inclusive Play Area-Planning 850,000 (850,000) - 056 St Light Install-Annual Infill 75,000 (75,000) - 085 Playground EQ(Creekside&Varian) 300,000 (300,000) - 086 Various Park Amenities 200,000 (200,000) - 258 City Lighting LED Transition Ass 1,300,000 (1,300,000) - 262 De Anza Blvd Buffered Bike Lanes 525,000 (525,000) - 264 City owned properties Analysis 90,000 (90,000) - TOTAL CAPITAL PROJECTS FUNDS $ FY 2022-23 Adopted Budget Financial Schedules 117 Adopted .. Adopted Budget Adopted Budget Fund Type/Program Revenues Expenditures Change in Fund General Fund Balance/Net Position Contribution ENTERPRISE FUNDS 001 No Department 3,106 (3,106) 088 BBF Golf Renovation/Alt use 23,600 - 23,600 260 BBF Golf Maintenance - 133,586 (133,586) 613 Youth Teen Recreation 674,550 1,504,209 (829,659) 616 BBF Golf Course 433,600 668,446 (234,846) 620 Outdoor Recreation 862,000 869,015 368,985 376,000 621 Sports Center Operation 2,600,000 2,876,082 (276,082) - 801 Resources Recovery 1,212,642 2,285,090 (1,072,448) 836 Bldg Maint Sports Center - 640,197 (640,197) - TOTAL ENTERPRISE FUNDS INTERNAL SERVICE FUNDS 300 Administration - 341,934 (259,434) 82,500 310 Infrastructure 1,556,269 2,721,957 1,289,312 2,455,000 414 HR Retiree Benefits - 1,388,276 (1,388,276) - 418 Workers Compensation Insurance 436,145 516,946 (80,801) 419 Long Term Disability - 98,523 (98,523) - 420 Compensated Absence 646,650 235,350 882,000 849 Equipment Maintenance 1,568,633 1,594,350 (25,717) - 985 Fixed Assets Acquisition - 7,844 (7,844) 986 GIs 928,949 1,546,226 (617,277) - TOTAL INTERNAL SERVICE FUNDS® 4,489,996 $ 8,862,706 $ (953,210 - TOTAL ALL FUNDSi 118,224,257 $ 130,587,325 $ FY 2022-23 Adopted Budget Financial Schedules 118 Fund Balance Report Actual Projected Adopted Budget Fund Beginning Fund Beginning Fund Adopted Budget Adopted Budget Ending Fund Balance Balance Revenues Expenditures Balance as of 7/1/2021 as of i6/30/2022 GENERALFUND 100 General Fund 96,851,990 110,611,904 94,661,388 95,167,779 110,105,513 130 Investment Fund (1,200) (1,200) - - (1,200) TOTAL GENERAL FUNDS $ 96,850,790 $ 110,610,704 $ 94,661,388 $ 95,167,779 $ 110,104,313 SPECIAL REVENUE FUNDS 210 Storm Drain Improvement 2,368,060 368,060 - - 368,060 215 Storm Drain AB1600 1,715,966 1,795,203 201,229 - 1,996,432 230 Env Mgmt Cln Crk Strm Drain 1,887,623 917,878 1,581,472 2,067,399 431,951 260 CDBG 1,159,287 1,341,754 495,481 554,999 1,282,236 261 HCD Loan Rehab 188,294 188,294 - - 188,294 265 BMR Housing 6,6M,532 8,527,597 8,027,202 1,222,398 15,332,401 270 Transportation Fund 9,409,837 12,491,018 6,009,697 7,399,313 11,101,402 271 Traffic Impact 468,998 468,998 - - 468,998 280 Park Dedication 9,556,519 2,675,440 - - 2,675,440 281 Tree Fund 152,156 137,156 - - 137,156 TAL SPECIAL REVENUE FUNDS $ 33,507,271 28,911,396 $ 16,315,081 $ 11,244,109 $ 33,982,368 DEBT SERVICE FUNDS 365 Public Facilities Corp 63,350 8,350 2,675,8W 2,675,800 8,350 TOTAL DEBT SERVICE FUNDS 2,675,800 $ CAPITAL PROJECTS FUNDS 420 Capital Improvement Fund 25,890,500 30,967,464 - 3,633,600 27,333,864 427 Stevens Creek Corridor Park 179,057 119,511 - - 119,511 429 Capital Reserve 10,968,616 9,546,568 2,500,000 - 12,046,568 TOTAL CAPITAL PROJECTS FUNDS $ 37,038,174 $ 40,633,544 $ 2,500,000,A0000,633,600 $ 39,499,944 ENTERPRISE FUNDS 520 Resource Recovery 5,498,063 4,339,786 1,212,642 2,285,090 3,267,338 560 Blackberry Farm 868,510 580,791 457,200 826,036 211,955 570 Sports Center 2,897,406 1,693,601 2,600,000 3,517,900 775,701 580 Recreation Program 2,200,680 879,991 1,912,550 2,374,305 418,236 _ TOTAL ENTERPRISE FUNDS $ 11,464,658 $ 7,494,168 $ JIF8-2,392 $ 9,003,331 $ 4,673,229 INTERNAL SERVICE FUNDS 610 Innovation&Technology 1,143,639 54,318 5,022,718 4,610,117 466,919 620 Workers'Compensation 2,540,345 2,462,344 436,145 516,946 2,381,543 630 Vehicle/Equip Replacement 1,801,826 1,186,847 1,568,633 1,602,194 1,153,286 641 Compensated Absence/LTD 669,671 (24,961) 882,000 745,173 111,866 642 Retiree Medical 157,590 (11,625) - 1,388,276 (1,399,901) TOTAL INTERNAL SERVICE FUNDS $ 6,313,071 $ 3,666,923 $ 7,909,496 $ 8,862,706 $ 2,713,713 TOTAL ALL FUNDS $ 185,237,313 $ 191,325,085 $ 130,244,157 $ 130,587,325 $ 190,981,917 For descriptions of funds,see Fund Structure in Financial Policies. FY 2022-23 Adopted Budget Financial Schedules 119 General Fund Summary The General Fund is the City's primary operating fund. It accounts for basic services such as public safety, public works,planning and development,park maintenance,code enforcement,and the administrative services required to support them. The fund generates revenue from the City's discretionary funding sources (e.g., property tax, sales tax,transient occupancy tax, and utility tax).As a rule, general fund resources are used only to fund operations that do not have other dedicated (restricted) funding sources. Operations that rely heavily upon non-general fund resources, such as street maintenance, solid waste collection, and recreation are accounted for in other funds. Information on these funds may be found in the Other Funds section of this document. For FY 2022-23, General Fund revenue estimates are$94.7 million, a$5.0 million, or 5.6%,increase from the FY 2021-22 Adopted Budget,mostly due to an increase in sales tax and property tax. General Fund expenditure estimates are $95.2 million, a $5.4 million, or 6.0%, increase from the FY 2021-22 Adopted Budget. The General Fund's ending fund balance is projected to decrease by 0.2% from the FY 2021- 22 Adopted Budget ending fund balance. This is due to a projected increase in sales tax, property tax, and transient occupancy taxes offset by a projected decrease in utility user's tax. GENERAL OPERATING SUMMARY 2019-20 020 AdoptedActual Actual .o. Beginning Fund Balance 58,922,584 74,505,822 96,850,790 110,610,704 14.2% Operating Revenues 111,064,690 106,217,493 89,647,891 94,661,388 5.6% Operating Expenditures (95,481,452) (83,872,526) (89,767,034) (95,167,779) 6.0% �et Revenues-Expenditures 15,583,238 22,344,967 (119,143) (506,391) 323-4 Unassigned 37,426,951 52,449,546 46,068,178 48,332,873 4.9% All Other Classifications 37,078,871 44,401,244 64,202,752 61,771,440 -3.8% Total Ending Fund Balance � 96,850,790 110,270,930 110,104,313' FY 2022-23 Adopted Budget Financial Schedules 120 General Fund Revenues Estimates for the FY 2022-23 beginning fund balance and General Fund revenue sources are based upon a careful examination of collection history and patterns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. FY 2022-23 revenue estimates are based on the anticipated increase or decrease in activity and receipts over the current year. Each source of revenue can be influenced by external (outside of the City's control) and/or internal factors. The FY 2022-23 revenue estimates are built on the assumption that the City is moving toward recovery from the COVID-19 pandemic. As shown in the chart below, FY 2022-23 revenues are estimated at $94.7 million, a 5.6% increase over the FY 2021-22 Adopted Budget. GENERAL FUND REVENUE SUMMARY REVENUES Actual Actual Adopted Adopted Chang] Sales Tax 35,657,215 42,576,587 27,855,559 31,944,089 14.7% Property Tax 26,606,844 28,277,839 27,840,341 30,039,574 7.9% Transient Occupancy 7,286,083 2,141,058 3,000,000 5,000,000 66.7% Utility Tax 3,182,087 3,074,358 3,245,447 2,955,404 -8.9% Franchise Fees 3,418,909 3,368,287 3,380,986 3,230,101 -4.5% Other Taxes 1,402,002 2,639,000 1,248,720 1,787,691 43.2% Licenses&Permits 4,692,845 4,068,238 3,140,195 3,541,012 12.8% Use of Money&Property 4,075,494 4,838,316 1,249,220 1,277,013 2.2% Intergovernmental 747,942 1,451,076 5,093,946 1,434,491 -71.8% Charges for Services 11,986,328 11,345,222 12,047,922 11,528,436 -4.3% Fines&Forfeitures 327,833 129,394 225,000 427,000 89.8% Miscellaneous 11,681,108 2,308,118 1,320,555 1,496,577 13.3% TAL REVENUES 111,064,690 106,217,493q'89,647,891 'F4,661,388 The majority of Cupertino's General Fund operating revenues are generated by sales taxes (34%) and property taxes (32%), followed by charges for services (12%) and Transient Occupancy Tax (5%). The chart on the next page illustrates the sources of General Fund revenue by category. FY 2022-23 Adopted Budget Financial Schedules 121 General Fund Revenues By Category Charges for Services 11,528,436 Fines&For-Feitures Intergovernmental (12 2%) 427,000 Miscellaneous 1,434,491 (0.5%) 1,496,577 (1.5%) (1 6%) Use of Money& Property 1,277,013 (1.3%) Licenses&Permits Sales Tax 3,541,012 31,944,089 (3 7%) (33.7%) Other Taxes 1,787,691 (1.9%) Franchise Fees 3,230,101 (3.4%) Utility Tax 2,955,404 (3.1%) Transient Occupancy 5,000,000 (5.3%) Property Tax 30,039,574 (31.7%) The FY 2022-23 General Fund revenue estimates are discussed by category below. Sales Tax Sales and Use Tax, commonly referred to as just the "sales tax"has two components: (1) an excise tax imposed on retailers for the privilege of selling tangible personal property, and (2) an excise tax imposed on a person and applies to purchases from out-of-state vendors that are not required to collect tax on their sales. The proceeds of sales and use taxes imposed within the boundaries of Cupertino are distributed by the State to various agencies,with the City of Cupertino receiving one percent, as shown in the chart to the right. Staff will continue to monitor competing interests for the City's '/4 cent sales tax imposed on local governments as a potential new source of revenue for affordable housing and transportation. If the City decides to include a similar ballot measure at a future election, subject to voter approval, the City has an opportunity to retain local control over the additional sales tax proceeds. Agency Sales Tax Distribution' State 6.000% T A 1711ro City of Cupertino 1.000% County General Purpose 0.750% County Transportation 0.250% To 9.125%g The City's sales tax revenues are generated from five principal economic categories: business-to-business 53% (includes electronic equipment and software manufacturers and distributors), state and county pools 32%, restaurants and hotels 7%,general consumer goods 4%,and fuel and service stations and other 1.6%. Our two largest sales taxpayers in the business-to-business category represent a large part of that sector and can significantly affect sales tax trends. Corporate and business technology spending drove growth in this sector in FY 2019-20 and FY 2020-21 as businesses transitioned to remote work during the pandemic. Business- FY 2022-23 Adopted Budget Financial Schedules 122 to-business sales tax is expected to decrease as pandemic restrictions end and the State transitions to a new normal. Given these trends, the City's FY 2022-23 sales tax revenue is expected to be lower than the historic highs seen in FY 2020-21. Sales tax receipts increased by 26.1% in FY 2016-17 due to a one-time $3.5 million payment related to the closeout of the triple flip and took a slight dip of 2.8%in FY 2017-18. Additionally, the City's sales tax revenues spiked to historic highs in FY 2019-20 and FY 2020-21; however, the City is considering it one-time. Sales tax revenues are estimated to generate$32 million in FY 2022-23,up 14.7%from the FY 2021-22 Adopted Budget. Sales Tax Collection Historical Trend ($in millions) $42.6 /$35.7 $3 $31.9 $26.9 $21.8 $26� $24.9 $21.4 $1�$19.8 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 SALES &USE TAX FY 20-21 Actual 42,576,587 FY 21-22 Adopted 27,855,559 FY 21-22 Estimate 36,911,996 FY 22-23 Adopted 31,944,089 % of General Fund 33.75% % Change from FY 21-22 Adopted 14.68% The swift reaction by consumers and businesses to the outbreak of COVID-19 in 2020 created significant fluctuations for the City's industry groups. While restaurants and hotels, general consumer goods, and automotive industry groups were severely impacted, the City's business-to-business and County pool allocation share increased substantially. This was brought on by shelter-in-place mandates throughout the State, which reduced sales tax revenues for restaurants and brick-and-mortar retail, thereby increasing online sales. Additionally, the conversion to remote work increased the demand for computer and electronic equipment, which increased the City's sales tax revenues. As the State continues toward recovery and businesses continue opening, it is anticipated that the City's restaurant and hotels, general consumer goods, and automotive industry groups will recover and increase. However,these increases will only slightly mitigate the anticipated declines in the City's business-to-business and County pool share allocation as online sales fall from recent historic highs. Although there is much uncertainty about the City's sales tax revenues, the City anticipates positive annual sales tax increases in the future. As information and data continue to become available,staff will bring forth updates and adjustments regularly as necessary. Property Tax FY 2022-23 Adopted Budget Financial Schedules 123 Under current law, property is assessed at actual full cash value, with the maximum levy being 1% of the assessed valuation. The assessed value of real property that has not changed ownership can be adjusted by the change in the California Consumer Price Index(CCPI)up to a maximum of 2%per year.Property that changes ownership, property that is substantially altered, newly-constructed property, State-assessed property, and personal property are assessed at the full market value in the first year and subject to the two percent cap thereafter. In 1978,voters approved the passage of Proposition 13,which froze property tax rates and limited the amount that rates could increase each year. Cupertino had one of the lowest property tax rates in Santa Clara County, receiving only $0.02 for every $1.00 paid. Subsequent legislation required Counties to provide "no/low tax" cities with a Tax Equity Allocation (TEA) equal to 7% of the property tax share. However, the property tax distribution for the no/low tax cities in Santa Clara County was limited to 55% of what other TEA cities in the State received. For every dollar poll in property taxes: THE UNITED ST.TES OJAMER11 J 1 .1 Y Y Schaal Districts Santa Clara ERAF' Other get 48Q gets gets County 70 30 gets 35V City of Cupertino *ERAF—Educational Revenue gets 70 Augmentation Fund In FY 2006-07,West Valley cities won the passage of State legislation which restored a portion of TEA property tax revenue. This TEA change provided an additional$1.35 million in property tax annually and increased the City's share of property taxes to 5.6%. In conjunction with three other West Valley cities, Cupertino continued legislative efforts to gain parity with other no/low property tax cities in the State. In FY 2015-16, Governor Brown agreed to restore TEA revenues over a five-year period. In FY 2019-20 TEA was fully restored, and Cupertino kept approximately 7.0% of property tax revenues in FY 2019-20 compared to 6.72% in FY 2018-19. Additionally, the Educational Revenue Augmentation Fund (ERAF), enacted in July of 1992 by the State Legislature to shift local tax revenues from cities,counties,and special districts to a State control ERAF,absorbs the shift-back of the TEA. FY 2022-23 Adopted Budget Financial Schedules 124 Property Tax Historical Trend ($in millions) $30.0 $28.3 $27.8 $25.3 $26.6 $22.4 $20.2 $18.1 $14.9 $15.8 $14 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 PROPERTY TAX FY 20-21 Actual 28,277,839 FY 21-22 Adopted 27,840,341 FY 21-22 Estimate 27,840,341 FY 22-23 Adopted 30,039,574 • of General Fund 31.73% • Change from FY 21-22 Adopted 7.90% The City experienced a net taxable value increase of 3.5% for the FY 2021-22 tax roll. The bulk of the increase was due to increases in residential properties by$829 million, or 4.9%.This category makes up 61.1%of the net taxable value.Unsecured property tax decreased by$700 million, or 28.9%. This category makes up 6.0%of the net taxable value. Lastly, commercial property values increased by $573 million, or 7.6%. This category makes up 28.3% of the net taxable value. The effects of COVID-19 on housing prices in Cupertino and the Bay Area have yet to be seen. Although values continue to increase, staff will monitor the potential impact of long-term and even permanent remote work in the City and region. Transient Occupancy Taxes Transient occupancy taxes (TOT) are levied on hotels and short-term room rentals located in the City at 12% of room revenues. In November 2011, 83% of voters approved increasing the rate from 10% to 12%. This rate increase contributed to the upward trend shown in the TOT Historical Trend graph.TOT is expected to end FY 2021-22 at $3 million, a 40% increase from FY 2020-21 actuals. The anticipated increase is due to the recent relaxation of prior pandemic-based restrictions, allowing for increased travel and the return of employees to their places of work. FY 2022-23 Adopted Budget Financial Schedules 125 Transient Occupancy Tax Historical Trend ($in millions) $8.9 $7.3 $6.8 $5.6 $5.9 $6.0 $5.0 $4.6 $3.8 $3.0 $2.1 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 TOT is projected to increase 66.7% in FY 2022-23. The City anticipates a "full-recovery" of TOT by FY 2023-24; however, the extent of the recovery is uncertain as the effect of teleworking on business travel remains to be determined. Currently, a recovery to a$7.5 million level is anticipated by FY 2023-24.With an Adopted Budget amount in FY 2022-23 of$5 million, it is clear the recovery in travel will gradual; however, staff is cautiously optimistic that this recovery could be accelerated through the continued rollout of the COVID-19 vaccination. TRANSIENT OCCUPANCY TAX FY 20-21 Actual 2,141,058 FY 21-22 Adopted 3,000,000 FY 21-22 Estimate 3,000,000 FY 22-23 Adopted 5,000,000 • of General Fund 5.28% • Change from FY 21-22 Adopted 66.67% Staff will continue to monitor these activities and bring forward adjustments and recommendations as necessary. Utility Tax The utility user tax (UUT), approved by voters in 1990, is assessed on gas, electricity, and telecommunication services provided within the City's jurisdiction at a rate of 2.4%of billed charges.Revenues generated from this tax can be used for general City purposes. ComparisonUtility User Tax Gas/Electric Cable Water Telecol Sunnyvale 2.0% - - 2.0% Cupertino 2.4% - - 2.4-1 Mountain View 3.0% - - 3.0% Los Altos 3.5% 3.21sue 3.2°1 Palo Alto 5.0% - 5.0% 4.8% Gilroy 5.0% 5.0% =5.000 San Jose 5.0% - 5.0% 4.5% FY 2022-23 Adopted Budget Financial Schedules 126 The City's tax rate is generally lower than that of other cities within Santa Clara County, as shown in the chart above. In March 2002,voters approved extending the utility tax's sunset date from 2015 to 2030. This extension corresponded with the extended debt maturity date resulting from the refinancing of debt for capital improvement projects. To maintain tax revenues received from telecom services, voters passed a measure in 2009 to update the ordinance to the changing technology in this area. FY 2021-22, UUT revenues are estimated to increase 5.6% from FY 2020-21 actuals, with projected revenues of $3.2 million due to more utilities being used. Budgeted revenues are expected to decrease to $3 million in FY 2022-23.This revenue source will be monitored closely as the fiscal year progresses. Utility Tax Historical Trend ($in millions) $3.4 $3.2 $3.2 ��$3.1 $3.1 --X $3 0 $ $3.1 $3.0 ■ $2.9 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 UTILITY TAX FY 20-21 Actual 3,074,358 FY 21-22 Adopted 3,245,447 FY 21-22 Estimate 3,245,447 FY 22-23 Adopted 2,955,404 • of General Fund 3.12% • Change from FY 21-22 Adopted -8.94% Franchise Fees Franchise fees are received from cable, solid waste, water, gas, and electricity franchisees that operate in the City. The fees range from 1% to 12% of the franchisee's gross revenues, depending on each agreement. As shown in the graph below,these revenues are relatively steady and not sensitive to economic fluctuations. FY 2022-23 Adopted Budget Financial Schedules 127 Franchise Fee Collection Historical Trend ($in million) $3.6 $3.5 $3.4 $3.4 $3.4 $3.4 $3.4 $3.2 $28 $2.is FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FRANCHISE FEES FY 20-21 Actual 3,368,287 FY 21-22 Adopted 3,380,986 FY 21-22 Estimate 3,380,986 FY 22-23 Adopted 3,230,101 • of General Fund 3.41% • Change from FY 21-22 Adopted -4.46% In FY 2021-22,franchise fee revenues are trending up 0.3%from FY 2020-21 actuals primarily due to an increase in electricity and water rates. Budgeted revenues are expected to remain at approximately $3 million for FY 2022-23.This revenue source will be monitored closely as the fiscal year progresses. Other Taxes Other taxes are comprised mainly of business license taxes, construction taxes, and property transfer taxes. As shown in the graph,business license and property transfer taxes are relatively steady, while construction taxes are extremely volatile and sensitive to economic fluctuations. FY 2022-23 Adopted Budget Financial Schedules 128 Other General Fund Taxes Historical Trend($in millions) $10 $9 $8 $7 $6 -CONSTRUCTION TAX $5 -BUSINESS LICENSE TAX $4 -PROPERTY TRANSFER TAX $3 $2 $1 /\ $0 FY 12-13FY 13-14FY 14-1SFY 1S-16FY 16-17FY 17-18FY 18-19FY 19-20FY20-21 FY21-22 FY22-23 OTHER TAXES FY 20-21 Actual 2,639,000 FY 21-22 Adopted 1,248,720 FY 21-22 Estimate 1,248,720 FY 22-23 Adopted 1,787,691 • of General Fund 1.89% • Change from FY 21-22 Adopted 43.16% With the influx of several major construction projects beginning in 2012,revenues began increasing.The largest of the projects included the Apple Park and Main Street developments. These projects, coupled with a strong housing recovery, created a record year for revenues in FY 2013-14. These revenues have since returned to historic levels.In FY 2022-23,these revenues are expected to increase by 43%from the prior year to$1.8 million. This is primarily due to the projected increase from known 2021 property tax transfers. For FY 2023-24 and later, a growth rate is applied that is representative of the historical average rate of real property growth due to properties that have transferred ownership. Charges for Services Charges for Services account for charges to users of City services funded by the General Fund as well as internal City-wide overhead. The City attempts to recover the cost of the services, including planning, zoning, and engineering permit processing for new property development, as well as some recreation-related fees. As such,this revenue source is sensitive to economic fluctuations,as shown in the graph below. FY 2022-23 Adopted Budget Financial Schedules 129 Charges for Services Historical Trend ($in millions) $17.9 $15 51-0 $12.0 $113 $12.0 $ll.s $11.0 $10.s $4. 53.1 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Apple Park and other large developments generated large one-time revenues in FY 2013-14 as well as FY 2015- 16 and FY 2016-17. In addition, beginning in FY 2013-14, enterprise funds, internal service funds, and special funds began charging for overhead services previously subsidized by the General Fund.Some internal strategic support services (Human Resources, Finance, City Clerk, etc.) also began charging internal departments to capture the true cost of providing various programs and services within City operations. After a comprehensive Cost Allocation Plan was approved by Council in April 2016,internal strategic support services (City Council, Facilities, Maintenance, etc.) were included. In FY 2015-16, the City's administration changed its methodology for tracking developer deposits driven by increased developer activity, and, as a result, both budgets for revenues and expenses were increased by anticipated deposit amounts leading to another large increase in revenue. CHARGES FOR SERVICES FY 20-21 Actual 11,345,222 FY 21-22 Adopted 12,047,922 FY 21-22 Estimate 14,425,179 FY 22-23 Adopted 11,528,436 • of General Fund 12.18% • Change from FY 21-22 Adopted -4.31% Current year actuals will come in higher compared to budgeted levels due to relaxation of prior pandemic restrictions, allowing for the continued reopening of City facilities. Increases in the City fees, effective July 18, 2022, would represent additional revenues of approximately $92,662 in the General Fund and $158,000 in the Enterprise Funds. License and Permits Licenses and permits include fees for reviewing building plans, building inspections, construction, tenant improvements, and commercial/residential installations for compliance with state and municipal building codes. FY 2022-23 Adopted Budget Financial Schedules 130 Licenses&Permits Historical Trend ($in millions) $33.6 $3.5 $3.7 $4.1 $4.7 $3.2 $3.1 $2.5 $2.8 ♦ ♦ ♦$4.1 ♦$3.5 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Apple Park and large residential projects (Rosebowl, Biltmore expansion, Main Street) generated significant permitting revenues in FY 2013-14. Since then, activity has slowed until FY 2018-19, when revenues came in 48.8% higher. Although this revenue source is relatively consistent from year to year, fluctuations may occur depending on the timing of projects being completed.The$33.6 million estimated amount in FY 2021-22 is due to Vallco Town Center (renamed The Rise) and its scheduled commencement in FY 2022-23. Vallco's commencement was originally scheduled for FY 2020-21 and FY 2021-22 but was postponed due to soil contamination.These revenues will be carried forward and recognized as the project progresses to completion. LICENSES AND PERMITS FY 20-21 Actual 4,068,238 FY 21-22 Adopted 3,140,195 FY 21-22 Estimate 33,594,629 FY 22-23 Adopted 3,541,012 • of General Fund 3.74% • Change from FY 21-22 Adopted 12.76% This revenue source is expected to reach$3.5 million in FY 2022-23. Use of Money and Property The use of money and property category is comprised of General Fund interest earnings as well as facility and concession rental income of City-owned property. As of June 30, 2022, the City's portfolio included $21.1 million invested with the Local Agency Investment Fund (LAIF) and $148.7 million invested with Chandler Asset Management.As of June 30,2022,the City also had$17.2 million in its Section 115 Pension Trust. Fluctuations in this revenue category are a result of investment earnings, as rental income is fairly steady. Investment earnings were higher in FY 2019-20 and FY 2020-21 due to investment gains in the City's Section 115 Pension Trust. FY 2022-23 Adopted Budget Financial Schedules 131 Use of Money and Property Historical Trend ($in thousands) 54,609 $4,tl) $2,68 $1,362 $1,277 $1,177 /$1,343 $1,24 $808 $650 $690 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 USE OF MONEY AND PROPERTY FY 20-21 Actual 4,838,316 FY 21-22 Adopted 1,249,220 FY 21-22 Estimate 1,249,220 FY 22-23 Adopted 1,277,013 % of General Fund 1.35% % Change from FY 21-22 Adopted 2.22% Investment earnings are a function of the amount of cash available for investment, current interest rates, and the composition of investments.The City's investment objectives,in order of priority,are: • Safety to ensure the preservation of capital • Sufficient liquidity for cash needs . A market rate of return consistent with the investment program Geopolitical conflict has fueled volatility in financial markets. The conflict has exacerbated inflationary pressures, particularly in energy and commodities, and has caused tightening conditions in financial markets. While consumer spending and economic growth remain strong, an extended conflict along with elevated energy prices increases the risk of an economic slowdown later this year.While the Federal Reserve is expected to tighten monetary policy, the Federal Open Market Committee (FOMC) has very little margin for error as it attempts to combat inflation without pushing the economy into a recession. Over the near-term, the City's investment manager, Chandler Asset Management, expects financial market volatility to remain elevated and conditions to remain tighter with heightened geopolitical risk,supply chain bottlenecks and persistent inflation, and the Federal Reserve's pivot to less accommodative monetary policy. The FOMC raised the federal funds rate by 0.25% at their March 16th meeting to a target range of 0.25% to 0.50%. The Federal Reserve also ended its bond-buying program as expected in March, which included the purchase of treasury and agency mortgage-backed securities. Federal Reserve Chair Powell suggested that balance sheet runoff could begin as early as their next meeting in May, sooner than previously anticipated, and that the pace of the unwind will likely be faster than in the previous quantitative tightening cycle. The dot plot FY 2022-23 Adopted Budget Financial Schedules 132 favors six additional rate hikes in 2022,which implies a 25 basis point rate hike at each remaining meeting this year, but the Federal Reserve hasn't ruled out incorporating one or more 50 basis point hikes to address inflation. City staff will continue to monitor interest rates as well as economic factors in both the local as well as national economies. Fines and Forfeitures Fines and forfeitures account for revenues generated from vehicle, parking, and miscellaneous code violations issued by the County Sheriff and the City's Code Enforcement officers. In FY 2021-22, the revenues for City Fines were inadvertently excluded, reflecting a projected estimate of only $225,000. However, after adding an estimated $102,000 in revenues for City Fines, this revenue source is expected to reach$327,000 in FY 2021-22. Additionally, FY 2022-23 revenues are expected to increase to $427,000 due to an increase in fines as society rebounds from the pandemic. FORFEITURESFINES AND FY 20-21 Actual 129,394 FY 21-22 Adopted 225,000 FY 21-22 Estimate 225,000 FY 22-23 Adopted 427,000 • of General Fund 0.45% • Change from FY 21-22 Adopted 89.78% Fines&Forfeitures Historical Trend($in thousands) -CITY FINES PARKING FINES -ADMIN CITATIONS $450 $400 $350 $300 $250 $200 $150 / $100 $50 $0 FY 12- FY 13- FY 14- FY 15- FY 16- FY 17- FY 18- FY 19- FY 20- FY 21- FY 22- 13 14 15 16 17 18 19 20 21 22 23 Intergovernmental Intergovernmental revenues are made up of federal, state, and regional grants, including miscellaneous intergovernmental revenue. FY 2022-23 Adopted Budget Financial Schedules 133 INTERGOVERNMENTAL FY 20-21 Actual 1,451,076 FY 21-22 Adopted 5,093,946 FY 21-22 Estimate 10,365,946 FY 22-23 Adopted 1,434,491 % of General Fund 1.52% % Change from FY 21-22 Adopted -71.84% FY 2021-22 actuals are estimated to come in significantly higher than budgeted levels due to the receipt of COVID-19 relief dollars as part of the American Rescue Plan Act of 2021. The City received $4,852,301 in FY 2020-21 and is expecting to receive$4,852,301 in FY 2021-22. Miscellaneous Revenue Miscellaneous revenues account for unanticipated revenues such as donations and administrative fees. MISCELLANEOUS FY 20-21 Actual 1,263,163 FY 21-22 Adopted 1,000,555 FY 21-22 Estimate 1,643,661 FY 22-23 Adopted 1,160,437 % of General Fund 1.23% % Change from FY 21-22 Adopted 15.98% FY 2022-23 miscellaneous revenue remains relatively consistent with FY 2021-22 Adopted Budget. FY 2021-22 miscellaneous revenue is estimated to come in higher than budgeted due to a $500,000 increase in administrative fees for Community Development Department projects.These revenues will be carried forward and recognized as the project progresses to completion. The majority of the General Fund's miscellaneous revenues are due to Apple's annual donation for additional sheriff services at Apple Park. Other Financing Sources Other Financing Sources generally account for refundable deposit revenues within the Community Development Department. With significant fluctuations, year-over-year, staff conservatively estimate these revenues. In FY 2021-22, revenues are projected to be higher due to the carryover of refundable deposit revenues for development projects. OTHER FINANCING SOURCES FY 20-21 Actual 537,124 FY 21-22 Adopted 275,000 FY 21-22 Estimate 1,638,330 FY 22-23 Adopted 275,000 % of General Fund 0.29% % Change from FY 21-22 Adopted 0.00% This revenue source is expected to remain at$275,000 in FY 2022-23. Transfers In Transfers In represent the movement of funds from one City fund to another,the General Fund in this case. FY 2022-23 Adopted Budget Financial Schedules 134 TRANSFERS IN FY 20-21 Actual 507,831 FY 21-22 Adopted 45,000 FY 21-22 Estimate 5,092,387 FY 22-23 Adopted 61,140 % of General Fund 0.06% % Change from FY 21-22 Adopted 35.87% In FY 2021-22, actual transfers were higher due to$4.8 million in transfers related to the American Rescue Plan Act. In FY 2022-23, the City plans to transfer funds from the City's Tree Fund to the General Fund to support ongoing tree maintenance operations. FY 2022-23 Adopted Budget Financial Schedules 135 General Fund Revenue Comparisons with Other Jurisdictions The table below shows General Fund Revenue Comparisons with neighboring jurisdictions for FY 2018-19 through FY 2022-23. It shows general fund revenue totals and population. Population data is from the California Department of Finance. 1 1 1 1 1 12022-23 City Actual Actual Actual Adopted Adopted Milpitas General Fund-Rev 112,751,530 105,104,426 98,130,755 110,779,648 117,726,970 Population 74,762 75,796 77,180 80,287 80,839 Campbell General Fund-Rev 54,364,113 50,606,793 53,968,736 57,130,551 61,239,715 Population 41,748 41,977 41,898 43,086 42,833 Cupertino General Fund-Rev 88,788,444 80,104,468 105,987,732 89,647,891 94,661,388 Population 59,784 59,436 59,244 59,884 59,610 Fremont General Fund-Rev 207,266,000 201,589,000 238,247,805 210,501,660 244,603,497 Population 232,107 232,601 233,132 228,872 229,476 Hayward General Fund-Rev 181,803,935 170,106,989 172,864,000 189,011,000 199,141,000 Population 158,896 159,272 159,266 161,744 160,591 Mountain View General Fund-Rev 146,010,075 142,667,193 143,706,287 152,248,350 163,835,960 Population 80,104 80,986 81,302 83,128 83,864 Palo Alto General Fund-Rev 205,600,846 188,947,000 179,834,301 183,331,789 215,219,384 Population 68,482 68,272 68,145 67,422 67,473 San Jose General Fund-Rev 1,394,877,114 1,204,729,056 1,355,444,037 1,218,643,055 1,352,528,025 Population 1,045,854 1,043,617 1,041,466 991,144 976,482 San Leandro General Fund-Rev 118,797,274 117,510,313 131,849,000 129,269,000 133,527,000 Population 88,389 88,328 87,840 89,926 88,404 Santa Clara General Fund-Rev 284,451,230 242,422,504 240,695,681 256,944,069 242,058,385 Population 126,374 125,908 127,301 129,122 130,127 Sunnyvale General Fund-Rev 212,294,815 197,073,210 213,758,215 234,732,112 218,299,456 Population 152,935 154,074 154,252 155,326 156,234 The charts below compares sales tax, property tax, transient occupancy tax, franchise fees, and building permits revenues with other jurisdictions in dollars per capita. FY 2022-23 Adopted Budget Financial Schedules 136 FY 2022-23 Sales Tax-$Per Capita 633 536 483 462 419 371 339 284 300 262 191 Sunnyvale Mountain Hayward Fremont San Jose Campbell Milpitas Santa Palo Alto Cupertino San View Clara Leandro FY 2022-23 Property Tax-$Per Capita 886 826 706 578 527 549 482 504 437 390 315 San Hayward San Jose Campbell Cupertino Milpitas Fremont Santa Sunnyvale Mountain Palo Alto Leandro Clara View FY 2022-23 Adopted Budget Financial Schedules 137 FY 2022-23 Transient OccupancyTax-$Per Capita 270 103 97 84 70 76 52 24 6M ■ San Hayward San Jose Fremont Mou ntain Campbell Sunnyvale Cupertino Santa Milpitas Palo Alto Leandro View Clara FY 2022-23 Franchise Fees-$Per Capita 90 71 71 67 61 s4 48 so 0 37 24 Palo Alto* Santa Sunnyvale Fremont San Jose Cupertino San Milpitas Hayward Mountain Campbell Clara Leandro View * Palo Alto - Only cable franchise fees are included. Franchise fees are not part of the General Fund but are included for comparison purposes. FY 2022-23 Adopted Budget Financial Schedules 138 FY 2022-23 Building Permits-$Per Capita 9b 88 75 58 59 62 47 34 37 20 0 Santa Fremont* San Jose San Hayward Campbell Cupertino Milpitas Palo Alto Sunnyvale Mountain Clara* Leandro View* *Santa Clara-Building-related revenues are not reflected in the General Fund. Fremont-Building permits are not part of the General Fund but are included for comparison purposes. Mountain View - Building permit revenues are not part of the General Fund,but are included for comparison purposes. FY 2022-23 Adopted Budget Financial Schedules 139 General Fund Expenditures Estimates for the FY 2022-23 General Fund expenditures are based upon anticipated personnel and non- personnel cost increases. This year, department budgets reflect a base budget with justified ongoing expenses, accounting for changes in personnel costs and any other anticipated/known increased costs in FY 2022-23. In addition, most budgets were given additional funds for any unexpected expenditures that are accounted for in the contingency account,which remained at 2.5% of base materials and contract services. Lastly,per the City's Reserve policy, an unassigned General Fund balance above the $500,000 maximum balance will be recommended for transfer to the Capital Reserve Fund for future capital and infrastructure projects, after year- end close and as part of the mid-year financial report. With a projected increase in unassigned fund balance for FY 2022-23 and an unexpected increase in revenues during FY 2020-21 and FY 2021-22,the City is recommending adding back a number of prior year materials and contract services requests that were deferred to mitigate the impacts of COVID-19. Additionally, financial updates will be provided on a quarterly basis to effectively communicate the City's progress toward a financial recovery from COVID-19. As shown in the chart on the next page, FY 2022-23 expenditures are estimated at $95.2 million, which represents a 6%increase compared to the adopted budget from the prior year. This budget reflects an increase in Employee Compensation and Benefits due to 14 additional positions. There is also an increase in Materials primarily attributed to an increase in software expenses, electrical, and water service charges in FY 2022-23. Additionally, there is an increase in Contract Services primarily attributed to the annual increase in the City's Law Enforcement contract with Santa Clara County Sheriff. GENERAL FUND EXPENDITURE SUMMARY EXPENDITURES Actual Actual Adopted Adopted Change Employee Compensation 18,153,833 18,441,609 21,806,721 24,295,660 11.4% Employee Benefits 7,732,290 8,238,449 10,154,044 11,440,636 12.7% Total Personnel Costs 25,886,123W26,680,058 31,960,765 35,736,296 11.81J Non-Personnel Costs Materials 4,860,223 4,248,715 6,639,523 7,219,073 8.7% Contract Services 21,528,698 21,106,602 23,773,121 25,026,032 5.3% Cost Allocation 9,786,477 10,473,540 11,948,062 10,385,961 -13.1% Capital Outlay&Special Projects 2,245,576 5,895,185 3,221,800 3,657,378 13.5% Contingencies 40 293 426,779 451,739 5.8% Other Uses 282,038 319,444 545,000 695,000 27.5% Total Non-Personnel 38,703,053 42,043,779 46,554,285 47,435,183 - Transfers 30,892,276 15,148,689 11,251,984 11,996,300 6.6% TOTAL EXPENDITURES 95,481,452J&83,872,526 89,767,034 95,167,779AL 6.0°4 The largest General Fund operating expenditure categories include Employee Compensation and Benefits (38%), Contract Services (26%), Transfers Out(13%), and Cost Allocation(11%) as illustrated in the FY 2022-23 General Fund Expenditures by Category chart. FY 2022-23 Adopted Budget Financial Schedules 140 General Fund Expenditures by Category Other Uses Transfers 695,000 11,996,300 Contingencies (0.7%) (12.6%) 451,739 Employee (0.5%) Compensation 024,295,660 Capital Outlay& (25.5%) Special Projects 3,657,378 (3.8%) Cost Allocation 10,385,961 (10.9%) 'Employee Benefits 11,440,636 (12.0%) Contract Services 25,026,032 Materials (26.3%) 7,219,073 (7.6%) Personnel Costs Personnel costs total $35.7 million in FY 2022-23, comprising 38% of General Fund expenditures. These costs are made up of salaries and compensation for benefitted and part-time staff (68%), retirement benefits (20%), and other fringe benefits(11%),including health coverage. Costs were calculated by taking an extract of payroll system information. This individual position-level information was then reviewed, corrected, and updated by each department to include current vacancies and filled positions, accurate salary step status, as well as any position reallocations. Also, all categories of benefit costs in the coming year were projected. The most recent retirement plan and health plan information for each position was also updated from the payroll system.Not included in personnel costs is the ongoing contribution for retiree healthcare which is included in the transfers category. Ca1PERS retirement rates are projected to increase to$6.9 million, an increase of$0.7 million, or 11.5%, per the most recent actuarial valuation report from Ca1PERS. Under the Funding Risk Mitigation Policy, the 21.3% return in FY 2020-21 triggered a reduction in the discount rate from 7% to 6.8%. Pension contribution projections are reflected in the General Fund forecast section of the budget. A total of 225 FTEs are budgeted in FY 2022-23, an increase of 14 FTEs, or 6.6%, from the FY 2021-22 Amended Budget.The positions are summarized below: FY 2022-23 Adopted Budget Financial Schedules 141 DepartmentPosition FY 2021-22 Adopted Budget 208.75 FY 2021-22 Amended Budget City Attorney Administration 1.00 Senior Assistant City Attorney Administration 1.00 Community Relations Coordinator Administration 0.25 FY 2021-22 Amended Budget FY 2022-23 Adopted Budget Administrative Assistant Administration 1.00 Assistant City Manager Administration 1.00 Communications Analyst(Limited-Term) Administration 1.00 Legislative Aide (Management Analyst) Administration 1.00 Budget Manager Administrative Services 1.00 Purchasing Manager Administrative Services 1.00 Community Outreach Specialist Parks and Recreation 1.00 Associate Planner Community Development 1.00 Code Enforcement Officer Community Development 1.00 Office Assistant Community Development 1.00 Senior Planner(Housing) Community Development 1.00 Senior Planner(Planning) Community Development 1.00 Management Analyst Public Works 1.00 Maintenance Worker Lead Public Works 1.00 FY 2022-23 Adopted Budget 225.00 Non-Personnel Non-personnel costs total $47.4 million in FY 2022-23, comprising 50% of General Fund budgeted appropriations. These costs are primarily made up of Contract Services (26%), Cost Allocation charges (11%), Materials (8%), and Capital Outlays and Special Projects (4%). Costs were developed from the base budget created in FY 2021-22 with justified ongoing expenses and adjustments for any other anticipated/known increased costs in FY 2022-23. One-time projects were moved to a separate category in FY 2013-14 to ensure that expenditure trends reflect ongoing expenditure needs. In FY 2017-18, a concerted effort was made to differentiate costs related to special projects and capital outlays that are required to be depreciated. A special projects series was created in the contracts section of accounts for any new special projects going forward. With a projected increase in total unassigned fund balance for FY 2022-23, the City is able to add back a number of FY 2021-22 materials and contract services that were cut due to COVID-19 which is reflected in the 9% increase in materials and 5% increase in contract services compared to the prior year. Although program contingencies will remain reduced from 5% of budgeted General Fund materials and contract services to 2.5%. Program contingencies have been allocated proportionately among operating programs based on each program's share of General Fund budget for materials and contract services. The City Manager Contingency is the second level of contingency established for unexpected expenditures that may occur over the program contingency. In FY 2020-21, the City Manager Contingency was reduced from 2.5% of budgeted General Fund materials and contract services to $75,000. This brings total contingencies for the General Fund to approximately 2.5% of budgeted materials and contract services. This percentage is lower than the best practices adopted by the Governmental Accounting Standards Board (GASB) which recommended 5-15% contingency. Program contingency budgets may be used to cover unanticipated program expenses at the department's discretion, while the use of the City Manager Contingency will require City Manager approval. The Sheriff's contract is excluded from the contingency calculation. FY 2022-23 Adopted Budget Financial Schedules 142 General Fund Transfers Transfers out represent transfers of monies out of the General Fund to various other funds. These transfers provide resources to the receiving fund to support operating and capital expenditures. The FY 2022-23 Adopted Budget includes the following transfers. Receiving Fund Description Amouz Special Revenue Funds BMR Housing,Sidewalk,Curb,and Gutter Maintenance 3,025,000 Debt Service Funds Annual Debt Payment 2,675,800 Capital Projects Funds Capital Improvement Program 2,500,000 Enterprise Funds Recreation 376,000 Internal Service Funds IT Infrastructure,Compensated Absences 3,419,500 TAL $ 11,996,300 FY 2022-23 Adopted Budget Financial Schedules 143 General Fund Fund Balance As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent.Fund balances for governmental funds are made up of the following: Nonspendable Fund Balance — includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The "not in spendable form" criterion includes items that are not expected to be converted to cash, for example, prepaid items,property held for resale, and long-term notes receivable. Restricted Fund Balance — includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers. Committed Fund Balance— includes amounts that can only be used for the specific purposes determined by formal action of the City's highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action (resolution) that imposed the constraint originally. Assigned Fund Balance — comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. The intent is expressed by the City Council or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. Through the adopted budget, the City Council establishes assigned fund balance policy levels and also sets the means and priority for the City Manager to fund these levels. Unassigned Fund Balance— is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Only the General Fund reports a positive unassigned fund balance. A governmental fund other than the General Fund may report a negative unassigned fund balance if expenditures incurred for a specific purpose exceed the amounts that are restricted, committed,or assigned to those purposes. In circumstances when an expenditure may be made for which amounts are available in multiple fund balance classifications, the fund balance in General Fund will generally be used in the order of restricted, unassigned, and then assigned reserves. In other governmental funds, the order will generally be restricted and then assigned. FY 2022-23 Adopted Budget Financial Schedules 144 General Fund Classification of Fund Balance Adopted , . BudgetActual Actual , Budget Nonspendable Loans Receivable 449,341 444,346 441,000 444,000 440,000 Advance to Other Funds - - 3,000,000 3,000,000 MMMVTotal Nonspendable 449,341 444,346 3,441,000 3,444,000 440,000 Restricted Public Safety Power Shutoff 217,551 - - - - CASp Certification and Training 13,193 13,392 13,982 13,982 13,982 Section 115 Pension Trust 12,725,224 18,491,004 20,491,004 20,820,778 22,820,778 Public Access Television 1,368,789 1,418,472 1,368,789 1,368,789 1,368,789 Total Restricted 14,324,757 19,922,868 21,873,775 22,203,549 24,203,549 Committed Economic Uncertainty Reserve 19,000,000 19,000,000 24,000,000 24,000,000 24,000,000 Capital Projects Reserve - - 10,000,000 10,000,000 10,000,000 Sustainability Reserve 127,891 127,891 127,891 127,891 127,891 Total Committed 19,127,891 19,127,891 34,127,891 34,127,5W 34,127,891 Assigned Reserve for Encumbrances 3,176,882 4,906,139 4,767,086 4,767,086 3,000,000 Total Assigned 3,176,882 4,906,139 4,767,086 4,767,086 3,000,000 Total Unassigned 37,426,951 52,449,546 46,068,178 46,068,178 48,332,873 TOTAL FUND BALANCE 74,505,822 96,850,790 110,277,930 110,610,704 110,104,313 FY 2022-23 Adopted Budget Financial Schedules 145 All Funds Summary This section provides information on the FY 2022-23 Special Revenue, Debt Service, Capital Project, Enterprise, and Internal Service Funds budgets including, expenditure and revenue highlights, transfers to other funds, reserve funds,and the financial forecast. Revenue Estimates Estimates for FY 2022-23 fund balance and individual revenue accounts are based upon a careful examination of the collection history and patterns as they relate to such factors as seasonality and performance in the economic environment that the City is most likely to encounter in the coming year. Each source of revenue can be influenced by external (outside of the City's control) and/or internal factors. The FY 2022-23 revenue estimates are built on the assumption that the economy will experience conservative growth as society recovers from the pandemic. FY 2022-23 Adopted Budget Financial Schedules 146 Special Revenue Funds Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds include the Park Dedication, Transportation, Storm Drain,and Environmental Management/Clean Creeks funds. Revenue Revenue sources are decrease by $3.2 million due to a decrease in transfers. Other Taxes is increasing due to housing mitigation revenue from the office project at 19191 Vallco Parkway. Transfers are decreasing due to a decrease in Capital Improvement Program projects. 0202022- SOURCESREVENUE Actuals Projected Adopted Budg! Other Taxes 383,333 3,691,092 8,203,431 Use of Money&Property 81,809 4,208 5,548 Intergovernmental 4,040,627 3,805,888 3,500,224 Charges for Services 1,718,950 1,547,078 1,512,209 Miscellaneous Revenue 1,921,936 87,057 - Fines and Forfeitures 5,065 10,000 68,669 Transfers In 4,200,000 10,322,824 3,025,000 Total Revenue Sources $ 12,351,720 $ 19,468,147 $ 16,315,08] Expenditures Expenditure uses are projected to decrease by $13.3 million primarily due to a decrease in Capital Outlays. Capital Outlays are lower due to a decrease in Capital Improvement Program projects. 020 i EXPENDITURE USES Actuals Projected Adopted Budg(7t Employee Compensation 1,590,963 1,670,873 2,050,572 Employee Benefits 764,490 835,875 1,037,760 Materials 1,235,228 1,045,588 1,001,596 Contract Services 430,662 1,893,027 1,152,665 Cost Allocation 1,046,834 1,325,945 1,191,567 Capital Outlays 2,875,144 13,705,003 1,038,000 Special Projects 2,881,302 2,989,965 3,742,268 Contingencies - 16,745 29,681 Transfers Out 15,000 581,000 - otal Expenditure Uses 10,839,623 $ 24,064,022 $ _ 11,244,1 Fund Balance Fund balance represents fund savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance. It is projected to increase by $4.7 million due to an increase in housing mitigation revenue from the office project at 19191 Vallco Parkway. 020 i CHANGES TO FUND : Actuals Projected Adopted Budge? ing Balance 31,995,174 33,507,271 28,911,396 Change in Fund Balance 1,512,097 (4,595,875) 5,070,972 Ending Balance $ 33,507,271 $ 28,911,396 $ 33,982,368 FY 2022-23 Adopted Budget Financial Schedules 147 Debt Service Fund The Debt Service Fund provides for the payment of principal, interest, and associated administrative costs incurred with the issuance of debt instruments for the City's Public Facilities Corporation. The budget funds the Corporation's annual payment of principal and interest on the City Hall/Community Hall/Library Certificates of Participation(COP)that will be paid off by July 1,2030. On September 29, 2020, the City's 2020A Certificates of Participation (2020 COPS) were successfully sold in order to refund the City's 2012 Certificates of Participation for debt service savings. The refunding generated net present value savings of approximately $3.14 million, 11.61% of refunded par, and a True Interest Cost of 0.72%.Savings to the City's General Fund amounts to approximately$494,000 per year for the next ten years or almost$5 million in total savings. Revenue Revenue sources are relatively unchanged from the last fiscal year. The $2.7 million transfer from the General Fund funds the annual payment of principal and interest for the City's debt. Increased activity in FY 2020-21 is due to the refinancing. 0 : REVENUE • Actuals Projected Adopted .• Use of Money&Property 332 - - Other Financing Sources 25,918,704 - - Transfers In 3,169,138 2,621,000 2,675,800 Total Revenue Sources $ 29,088,174 $ 2,621,000 $ 2,675,800 Expenditures Expenditure uses are relatively unchanged from the last fiscal year. The$2.7 million in expenditures represents the annual payment of principal and interest for the City's debt. Increased activity in FY 2020-21 is due to the refinancing. : : EXPENDITURE USES Actuals Projected Adopted Budgil Debt Service 30,710,696 2,676,000 2,675,800 Transfers Out - - - otal Expenditure Uses $ 30,710,696 $ 2,676,000 $ Fund Balance Fund balance represents fund savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance. Fund balance is relatively unchanged from the last fiscal year. CHANGES • FUND BALANCE � � Beginning Balance 1,685,872 63,350 8,350 Change in Fund Balance (1,622,522) (55,000) - Ending Balance $ 63,350 $ 8,350 $ 8,350 FY 2022-23 Adopted Budget Financial Schedules 148 Capital Project Funds This fund pays for the acquisition of major capital facilities and/or construction of major capital projects. Revenue Revenue sources are projected to decrease by$21.6 million due to a decrease in Capital Improvement Program projects.Transfers from the General Fund to the Capital Reserve are budgeted this year.In the past,transfers to the Capital Reserve were not budgeted and instead adjusted at mid-year. Given the City's aging infrastructure and capital projects needs, the City is allocating $2.5 million in transfers annually to the Capital Reserve throughout the forecast to facilitate Capital Improvement Program budget forecasting. i0 REVENUE • Actuals Projected Adopted B Use of Money and Property (472,493) - - Intergovernmental - 3,781,952 - Charges for Services - - - Miscellaneous 2,347,037 2,640,930 - Transfers In 6,430,000 17,687,283 2,500,000 Total Revenue Sources $ 24,110,165 $ 2,500,000 Expenditures Expenditure uses are projected to decrease by$16.9 million due to a decrease in Capital Improvement Program projects. : 0 i i EXPENDITURE USES Actuals Projected Adopted Budget Employee Compensation 254,304 223 - Employee Benefits 116,363 131 - Contract Services 11,895 44,683 265,000 Capital Outlays 9,277,220 9,047,710 3,345,000 Cost Allocation 168,274 - - Transfers Out 1,989,449 11,422,048 23,600 Total Expenditure Uses %.,11,817,504 $ 2n"795 $ m 3,633,600 Fund Balance Fund balance represents fund savings and is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending fund balance.$1.1 million of fund balance is budgeted to fund Capital Improvement Program projects. CHANGES • FUND BALANCE ii i i AdoptedActuals Projected Budget Beginning Balance 40,555111134 _ 37,038,174 40,633,544 Change in Fund Balance (3,512,960) 3,595,370 (1,133,600) Ending Balance $ 37,038,174 $ 40,633,544 $ 39,499,9 FY 2022-23 Adopted Budget Financial Schedules 149 Enterprise Funds Enterprise Funds are set up for the provision of specific services that are funded directly by fees charged for those goods or services. Enterprise Funds include the Resource Recovery, Sports Center,Blackberry Farm Golf Course,and Recreation funds. Revenue Revenue sources are projected to decrease by$0.9 million due to a decrease in fees and a decrease in transfers from the General Fund. •URCES ii i i REVENUE SActuals Projected Adopted Budget Use of Money&Property 437,303 707,000 700,000 Intergovernmental 14,916 14,000 14,000 Charges for Services 4,415,295 5,423,578 5,058,792 Miscellaneous Revenue - 10,000 10,000 Transfers In 2,849,000 886,801 399,600 Total Revenue Sources $ 1,'7TVJJJJJJJJJJP1?T779JJV6,182,392 Expenditures Expenditure uses are projected to decrease by $2.0 million due to a decrease in cost allocation charges and a decrease in special projects. 2020-21 i2022-23 BudgetEXPENDITURE USES Actuals Projected Adopted Employee Compensation 994,004 1,770,811 1,786,450 Employee Benefits 411,936 619,092 605,466 Materials 276,213 407,427 500,003 Contract Services 2,634,890 5,186,587 4,804,188 Contingencies - 82,548 132,526 Cost Allocation 923,089 1,034,107 789,939 Special Projects 87,941 1,636,138 207,153 Transfers Out 177,606 275,159 17606 otal Expenditure Uses $ 5,505,679 $ 11,011,869 $ Net Position Enterprise funds carry net position instead of fund balance. Net position is calculated by taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending net position. However, some of these resources are not liquid and represent capital assets. These monies are generally accumulated to support capital replacement and/or expansion needs. It is projected to decrease by$2.8 million due to decreased revenues and transfers. ii i CHANGES TO NET POSITION Actuals Projected Adopted Budgil Beginning Balance 9,253,822 11,464,658 7,494,168 Change in Net Position 2,210,836 (3,970,490) (2,820,939) Ending Balance $ 4,673, FY 2022-23 Adopted Budget Financial Schedules 150 Internal Service Funds Internal Service Funds are used for areas where goods or services are provided to other departments or governments on a cost-reimbursement basis. Internal Service Funds include the Information & Technology, Vehicle &Equipment Replacement, Workers' Compensation, Compensated Absences & Long-Term Disability, and Retiree Medical funds. Revenue Revenue sources are projected to increase by$1.2 million due to increased transfers from the General Fund for IT costs. i REVENUE SOURCES Actuals Projected Adopted Budgl Use of Money&Property 33,297 - - Charges for Services 4,443,083 4,678,201 4,053,851 Miscellaneous 9,799 - - Transfers In 490,000 1,652,359 3,419,500 Other Financing Uses 336,362 356,839 436,145 Total Revenue Sources $ 5,312,540 $ 6,687,399 $ 1&7,909,496 Expenditures Expenditure uses are projected to decrease by$0.5 million due to a decrease in Special Projects.Special Projects are lower because fixed assets requests for vehicle and equipment replacement were removed via Council action at the Proposed Budget Study Session. Fixed assets requests will be brought to City Council at a later time. ii AdoptedEXPENDITURE USES Actuals Projected Employee Compensation 1,722,848 1,736f052 1,803,287 Employee Benefits 1,881,727 2,015,467 2,190,096 Materials 924,646 1,190,890 1,418,575 Contract Services 1,267,879 1,519,909 1,798,390 Cost Allocation 52,343 60,817 62,042 Special Projects 140,684 1,804,337 541,100 Contingencies - 36,606 80,425 Other Financing Uses 968,791 969,469 968,791 otal Expenditure Uses $ 6,958,919 $ Net Position Internal Service Funds carry net position instead of fund balance.Net position is calculated in the same manner as fund balance, taking the beginning balance and then adding the difference between revenue and expenditures to arrive at the ending net position. However, some of the resources are not liquid and represent capital assets.These monies are generally accumulated to support capital replacement and/or expansion needs. It is projected to decrease by$1.0 million due to revenues being lower than expenditures. POSITIONCHANGES TO NET Actuals Projected Adopted Budgi- Beginning Balance 7,959,449 6,313,071 3,666,923 Change in Net Position (1,646,379) (2,646,148) (953,210) Ending Balance $ 6,313,071 $ 3,666,923 $ FY 2022-23 Adopted Budget Financial Schedules 151 General Fund Forecast Overview City staff develops medium-term(5-year)and long-term(20-year)forecasts as part of the budget process.While long-term projections are inherently less reliable than short-term projections, they can help detect structural budget issues early. As shown in the following chart, revenues will start to fall short of expenditures in FY 2040-41 because revenues are growing slower than expenditures. 20-Year General Fund Financial Forecast $143.9 M $134.5 M $134.8 $124.5M $95.2M $110.2M $94.7M 1P, .Lb ,LP tih ti� y0 3b 3ti 33 �b .5h ay0 �1 3$ 3� �O py p`L LIV L1b, .yV tih 'ISO ,y',' L0 LC �O' yeti �1 ,}�i' 3� 3h 3� ,�'1' ,�� ,�o�' �O' RN y0 LO ,y0 y0 10 ,y0 ,LO .y0 T IV .LO y0 ,y0 ,y0 y0 10 T T y0 ti0 y0 —Revenues —Expenditures Revenue growth is primarily driven by sales,property,and transient occupancy taxes. • Sales tax revenues experienced tremendous growth in FY 2019-20 and FY 2020-21 as the pandemic led to increases in business-to-business and online sales. Sales tax is expected to be lower in FY 2022-23 compared to FY 2020-21 as the economy emerges from the pandemic. In addition, the California Department of Tax and Fee Administration (CDTFA) is currently auditing the City's sales tax revenues. The impact of this audit is unknown but has the potential to have a significant impact on the City's sales tax revenues.Once more information is known,staff will bring updates to Council. • While currently strong, property tax may be affected if telecommuting impacts property values in the Bay Area. • Transient occupancy tax revenues have been slow to recover and are expected to recover to 75% of pre- pandemic levels gradually. Telecommuting may reduce business travel, reducing the demand for City hotels. FY 2022-23 Adopted Budget Financial Schedules 152 Expenditure growth is primarily driven by: . Additional staffing to meet the demand for City services. • Increases in the City's Law Enforcement contract with the Santa Clara County Sheriff's Office. Revenues continue to grow slower than expenditures, with annual operating surpluses projecting to decrease, as shown below. 20-Year General Fund Operating Surpluses/Deficits $9.1M 55.2M $3.7 M $3.1M$3.OM $2.6M $2.SM$2.SM $1.6M $0.9M $0.9M$1.2M $�M $O $0.7M .OM$0.3M -$0.5M -$0.4M $0.9M -$1.3M ti� ti° ti� ti� ti� ti� 3ti bti .Lti rV ti� LDt y�i .Lid L'\' tiV ti5 y°' �ti �ti b'b' �V b<C '��O ,b'1' �9i 5C y0 ti0 ti0 LO LO ti0 .LO ti0 ti0 ti0 ti0 y0 ti0 .LO LO ti0 ti0 LO LO Although it is difficult to estimate the full impacts of COVID-19 long-term,the City's fiscal foundation remains strong. With the General Fund's Economic Uncertainty Reserve intact and a healthy unassigned fund balance, the City is poised to withstand the impacts of revenue volatility. As the City emerges from the pandemic, staff will continue to monitor the situation closely and adjust when necessary. Staff intends on keeping the City Council and community informed with regular updates.Having the latest information and up-to-date data will allow for informed decision-making. FY 2022-23 Adopted Budget Financial Schedules 153 Forecast Methodology A financial forecast is a planning tool that helps staff identify trends and anticipate the long-term consequences of budget decisions. The forecast is instrumental in modeling the effects of retirement costs, employee compensation,and revenues on the City's budget. The forecast is not a plan but a model based on cost and revenue assumptions updated regularly as new information becomes available. Of these components, cost projections, which are based on known costs, are relatively reliable. On the other hand, revenue forecasts are based on assumptions related to future economic conditions, which are fraught with uncertainty. Economic forecasts change frequently and demonstrate the difficulties of committing to a particular prediction of the future. For this reason, staff updates the forecast regularly. While economic conditions are the primary drivers for economically sensitive revenues such as sales tax and property tax, other factors drive non-economically sensitive categories such as utility user taxes and franchise fees. These revenue categories are more heavily impacted by utility rate changes, energy prices, and consumption levels. Revenues from local, state, and federal agencies are primarily driven by grant and reimbursement funding. As a result, these revenues experience no significant net gain or loss during economic expansions or slowdowns. All revenue projections are based upon a careful examination of the collection history and patterns related to seasonality and the economic environment the City is most likely to encounter in the future. Staff also considered the potential impacts of the pandemic and CDTFA audit in determining the most reasonable estimated figures. A discussion of the national and local economic outlooks used to develop the revenue estimates for the FY 2022-23 forecast is included below. To create the revenue forecasts, the City reviewed national, state, and regional economic forecasts from multiple sources, including the Congressional Budget Office, California's Legislative Analyst's Office (LAO), and the Center for Continuing Study of the California Economy (CCSCE). To develop the sales tax,property tax, and transient occupancy tax(TOT)revenue projections,the City worked with HdL Companies,a tax consultant. The City's Consumer Price Index(CPI)forecasts are an average of State and County CPI from: • UCLA Anderson Forecast for the Nation and California . California Department of Transportation's California County-Level Economic Forecast In 2019,the City worked with UFI(Urban Futures,Inc.),a financial advisory and consulting firm,to: • Review,update,and enhance the City's baseline financial forecast. . Evaluate fiscal strategies,including potential local revenue measures. . Develop capital financing options,structures,and estimates for identified projects. • Prepare an analysis of city charter costsibenefits related to fiscal activities. This forecast includes the updates and enhancements that UFI has made to the City's baseline financial forecast. National Economic Outlook Real gross domestic product (GDP) increased at an annual rate of 6.9 percent in the fourth quarter of 2021, following an increase of 2.3 percent in the third quarter. The increase was revised down 0.1 percentage points from the "second" estimate released in February. The acceleration in the fourth quarter was led by an acceleration in inventory investment, upturns in exports and residential fixed investment, and an acceleration in consumer spending.In the fourth quarter,COVID-19 cases resulted in continued restrictions and disruptions in the operations of establishments in some parts of the country. Government assistance payments in the form FY 2022-23 Adopted Budget Financial Schedules 154 of forgivable loans to businesses, grants to state and local governments, and social benefits to households all decreased as provisions of several federal programs expired or tapered off. Geopolitical conflict has fueled volatility in financial markets. The conflict has exacerbated inflationary pressures, particularly in energy and commodities, and has caused tightening conditions in financial markets. While consumer spending and economic growth remain strong, an extended conflict along with elevated energy prices increases the risk of an economic slowdown later this year.While the Federal Reserve is expected to tighten monetary policy, the Federal Open Market Committee (FOMC) has very little margin for error as it attempts to combat inflation without pushing the economy into a recession. Over the near term, the City's investment manager, Chandler Asset Management, expects financial market volatility to remain elevated and conditions to remain tighter with heightened geopolitical risk,supply chain bottlenecks and persistent inflation, and the Federal Reserve's pivot to a less accommodative monetary policy. As the City moves forward through the pandemic and more information becomes available, staff will bring forward updates and adjustments to City Council regularly as necessary. Cupertino Economic Outlook Despite strong economic performance continuing in Silicon Valley and Cupertino pre-COVID, data from the State of California Employment Development Department indicates significant impacts resulting from the pandemic. Due to the timing of property appraisals entering the assessor's role, the City does not anticipate significant impacts on property tax revenues in FY 2022-23. While stable, property tax could be affected if remote work impacts property values in the Bay Area.Although strong in previous years, construction activity will continue to flatten out as recent large development projects, notably Apple Park, are now complete. Given the level of volatility surrounding the pandemic, it is difficult to estimate the timing of significant projects that could positively impact the City's revenues. FY 2022-23 Adopted Budget Financial Schedules 155 Revenues The City's top three revenue sources continue to be property tax, sales tax, and transient occupancy tax (TOT). While this will remain true,the City expects revenues to be below the highs in FY 2020-21. As shown in the chart below, General Fund revenues are expected to be $94.7 million in FY 2022-23 and increase through the forecast. Sales tax is projected to decrease from the record highs of FY 2020-21. Transient occupancy tax is projected to recover to a new normal gradually. Property tax is anticipated to increase in FY 2022-23.Other revenue sources consider assumptions ranging from no growth to conservative growth. The National Bureau of Economic Research (NBER), an American private nonprofit research organization, defines the beginning and ending dates of recessions. The NBER defines a recession as "a significant decline in economic activity spread across the economy, lasting more than two quarters which is six months, normally visible in real gross domestic product (GDP), real income, employment, industrial production, and wholesale- retail sales. Since World War II, recessions have lasted an average of 11.1 months and have occurred, on average, about every 58.4 months (4.8 years). As a result, the forecast assumes a recession every four years where revenues remain flat while expenditures continue to increase. 20-Year General Fund Revenue Forecast $143.9 M $131.8M $134.5M $123.9M $116.2 M $108.0 M $100.3 M $94.7M 3� otiy o�� ' o�� o��' oti� oti1 oti� oti� o''� o''y o'�� ' o�� o�y' o��O �� (Z 5 Q? Oro o�ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti FY 2022-23 Adopted Budget Financial Schedules 156 FIVE-YEAR GENERAL FUND REVENUES FORECAST 2021-22 i i i2026-27 AdoptedEstimate REVENUES Sales Tax 36,911,996 31,944,089 33,374,226 33,374,226 34,084,183 34,793,274 Property Tax 27,840,341 30,039,574 31,309,702 31,309,702 32,280,957 33,261,335 Transient Occupancy Tax 3,000,000 5,000,000 7,500,000 7,500,000 7,769,397 8,015,889 Utility Tax 3,245,447 2,955,404 2,975,245 2,975,245 2,995,136 2,995,095 Franchise Fees 3,380,986 3,230,101 3,323,379 3,323,379 3,414,110 3,411,699 Other Taxes 1,248,720 1,787,691 1,850,260 1,850,260 1,896,517 1,892,816 Licenses and Permits 33,594,629 3,541,012 3,558,717 3,558,717 3,576,511 3,576,511 Use of Money and Property 1,249,220 1,277,013 2,709,697 2,798,840 2,899,972 3,007,056 Intergovernmental 10,365,946 1,434,491 242,853 242,853 244,067 245,288 Charges for Services 14,425,179 11,528,436 11,848,938 11,848,938 12,156,215 12,463,336 Fines and Forfeitures 225,000 427,000 427,000 427,000 427,000 427,000 Miscellaneous 1,643,661 1,160,437 1,220,975 1,220,975 1,272,539 1,323,814 Transfers In 5,092,387 61,140 - - - - Other Financing Sources 1,638,330 275,000 - - - - _ TOTAL REVENUES 143,861,842 94,661,388 100,340,993 100,430,137 103,016,605 105,413,113 Sales Tax Sales tax is the City's largest revenue source. Sales taxes are collected at the point of sale and remitted to the California Department of Tax and Fee Administration (CDTFA), formerly the Board of Equalization. The CDTFA allocates tax revenue owed to the City in monthly payments. 5-Year Sales Tax Forecast $36.9M $33.4M $33.4M $34.1M $34.8M $31.9M 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 Sales tax revenues increased significantly in FY 2020-21 due to increases in the City's business-to-business industry and online sales. Business-to-business revenues reached record highs as businesses transitioned to remote work due to the pandemic. Additionally, due to Shelter-in-Place orders, brick-and-mortar retail sales decreased while online sales increased. However, the City believes this increase is one-time due to the pandemic. FY 2022-23 Adopted Budget Financial Schedules 157 As the economy recovered from the depths of the pandemic, sales tax revenues from the general consumer goods, restaurants and hotels, and fuel and service stations industries rose in FY 2021-22. However, the future growth rate for sales tax revenue is expected to slow markedly. Surging inflation, a dramatic jump in the global price of crude oil due to geopolitical conflict, and the Federal Reserve's tightening monetary policy will be headwinds in 2022. This is expected to result in weakening consumer sentiment and continued but decelerating,sales tax growth into 2023. In FY 2022-23, sales tax revenues are projected to be $31.9 million, a decrease from the highs in FY 2020-21. Sales tax revenues are projected to increase by an average annual growth rate of 1.9%in the forecast. Staff used conservative estimates for business and industry, general consumer goods, restaurants and hotels, and state and county pools. The City's sales tax revenues face concentration risk due to the dependence on a single industry. The largest industry group,business-to-business (13213), is sensitive to economic forces. In particular, the City's two largest sales tax sources—both technology companies—account for a large portion of the City's total sales tax revenues. Sales tax revenue is reported two quarters in arrears, providing the City with about six months to react if this revenue declines. Another risk is the California Department of Tax and Fee Administration(CDTFA) sales tax audit.The CDTFA is auditing one of the City's sales tax revenue sources. The impact of this audit is unknown but has the potential to significantly affect the City's sales tax revenues. Once more information is known, staff will bring updates to Council. Given the volatility of B2B revenue, which accounts for most of the City's sales tax revenue, a vital goal of the City's long-term fiscal, strategic plan is to diversify its sales tax sources. Recently completed development projects such as Nineteen800 and Main Street have boosted retail sales and can help reduce the City's reliance on B2B revenue. Property Tax Property taxes are anticipated to remain stable in the near term,but it is unknown how potential remote work might impact property taxes in the long term. With remote work, people are rethinking where they choose to live. If people no longer need to live close to the office, demand for residential real estate in urban areas may decrease. Companies can reduce office space if fewer employees are working at the office, decreasing demand for commercial office space. FY 2022-23 Adopted Budget Financial Schedules 158 5-Year Property Tax Forecast $32.3M $33.3M $31.3M $31.3M $30.OM $27.8M 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 Property tax revenues are projected to be $30.0 million in FY 2022-23 and increase by an average annual growth rate of 2.5% in the forecast. This moderate forecast is based on various factors, including historical trends for the City and projections for the region. Historically,property tax has increased at an average annual growth rate of 11%. However, this moderate forecast projects a much lower growth rate because no major development projects are assumed. Major development projects, such as Main Street and Apple Park, were significant contributors to the historical growth in property tax revenues. Transient Occupancy Tax Transient occupancy tax (TOT) revenues fell dramatically as the pandemic reduced travel. TOT revenues were $8.9 million in FY 2018-19 and $7.3 million in FY 2019-20, falling to $2.1 million in FY 2020-21. Transient occupancy taxes rely heavily on business travel. As businesses become accustomed to remote work, business travel may be permanently affected.If business travel fails to rebound,TOT revenues will be impacted. While leisure travel has recovered much sooner than expected, business travel has not recovered as quickly. Staff is cautiously optimistic business travel will increase gradually over the next few years. The City anticipates a recovery of TOT revenues by FY 2023-24; however, it is unknown whether business travel will return to pre-COVID levels. This forecast assumes that TOT revenues will recover to 75% of pre- COVID levels,or$7.5 million,in FY 2023-24 and gradually increase from the new normal. FY 2022-23 Adopted Budget Financial Schedules 159 5-Year Transient Occupancy Tax Forecast $7.8M $8.OM $7.SM $7.SM $5.0M $3.OM 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 TOT revenues are projected to be $5.0 million in FY 2022-23. In the forecast, TOT is projected to increase at an average annual growth rate of 2.6%. Beginning in FY 2023-24, the City used a moderate forecast based on historical tax collections. This moderate forecast assumes slower growth than historical trends, given that no additional hotels are expected to open.This forecast does not reflect the addition of any new hotels. TOT revenues are impacted by the tax rate charged on hotels in the City, the occupancy rate of the hotels, and the average daily room rates(ADR)of the hotels.TOT revenues are highly correlated with B2B revenue,as TOT revenues in Cupertino are primarily driven by business travel. Before the pandemic, occupancy rates were currently at record levels, given the City's strong local economy. However, given the dependence on business travel,shifts in travel habits or economic conditions could significantly impact this revenue source. Licenses and Permits Licenses and permits are forecasted to decrease in FY 2022-23 due to reduced development activity but increase slightly in the out-years. Licenses and permits revenue is projected to grow at 0.3% each year. Revenues are based on forecasts of California residential building permits, non-residential building permits, and construction payrolls from the UCLA Anderson Forecast for the Nation and California. Out of prudence, this forecast does not reflect any significant development projects that are awaiting approval. If new development projects are approved,staff will update this forecast accordingly. FY 2022-23 Adopted Budget Financial Schedules 160 5-Year Licenses&Permits Forecast $33.6M $3.5M $3.6M $3.6M $3.6M $3.6M ■ ■ ■ ■ ■ 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 Charges for Services Revenues from charges for services have decreased from their FY 2016-17 levels,primarily due to a decrease in development activity. 5-Year Charges for Services Forecast $14.4M $11.SM $11.8M $11.8m $12.2M $12.5m 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 In FY 2020-21,revenues from charges for services decreased due to Parks&Recreation Department's programs being affected by the COVID-19 pandemic. During the COVID-19 pandemic, the City's recreation facilities were shut down due to the Stay-at-Home order issued by the Santa Clara County Public Health Department in mid-March 2020.As COVID-19 restrictions have lifted,programs and events have resumed. Charges for Services revenues are projected to increase at an average annual growth rate of 2.0%.Other Service Fees, Cost Allocation Plan Charges for Services, and General Service Fees are projected to increase by 2.75% based on full-time salary growth. Planning Fees and Engineering Fees are based on construction and development factors, including California residential building permits, non-residential building permits, and construction payrolls from the UCLA Anderson Forecast for the Nation and California. This forecast does not assume any major development projects that are awaiting approval. FY 2022-23 Adopted Budget Financial Schedules 161 Other Revenue Utility taxes are forecasted to increase by an annual average growth rate of 0.4%based on historical trends. In recent years,increases in rates have been offset by decreases in consumption. Franchise fees are projected to increase by an average annual growth rate of 1.7% based on a trend of historical data. Other taxes are made up of construction, property transfer, and business license tax revenue. Revenue is projected to increase by an average of State and County CPI. Use of money and property is expected to grow at a rate of 0.5% each year based on the City's current conservative investment strategy and low-interest rates. The Section 115 Pension Trust is expected to grow at the discount rate of 6.25%. Intergovernmental revenues are projected to grow at a rate of 0.5%each year. Fines and Forfeitures are forecasted to remain constant in the forecast. Miscellaneous revenues are forecasted to increase by CPI each year. Non-operational revenues(Transfers and Other Financing Sources)are not assumed in the forecast. FY 2022-23 Adopted Budget Financial Schedules 162 Expenditures In FY 2019-20, the City developed a zero-based budget. Staff analyzed every function of the City for its needs and costs. Staff built the budget starting from a zero base and justified all costs, which resulted in base budget savings. For FY 2022-23, the City updated the prior year's base budget. Materials were increased by CPI, and contracts were updated based on contractual obligations. Ongoing costs that were approved during the prior fiscal year were added,and costs that are no longer needed were removed. The forecast was developed based on actual expenditures in prior years and FY 2022-23 projections. The forecast also included the following factors: CPI, construction and development activity, and Ca1PERS Normal Cost and Unfunded Liability projections. The forecast is adjusted to account for one-time changes and budget adjustments throughout the year. To manage expenditure growth, the City is considering budget-balancing strategies such as the use of the City's Section 115 Trusts to fund pension and OPEB costs. 20-Year Genera! Fund Expenditure Forecast $134.8M $135AM $131.OM $122.3M $113.3M $104.3 M $95.1M $95.2 M 1, .tit tih tiro ti'1 .tiR� tioi 5- .� �` .5 4R ,5c> # 3� 95, ,P t4 Dti p L titi .tiIV ti'b tib ,yh `tiV tit 1� ti0 50 ,�y 3'V 0.7 5a „�� 3V 31 .ti0 ,LO .ti4 .LO .ti0 .y0 .ti0 rti0 .tio ,y0 .ti0 ,y0 .LO .ti0 .y0 ti0 ,y0 .ti0 ,ti0 ti� ,ti0 FY 2022-23 Adopted Budget Financial Schedules 163 FrVE-YEAR GENERAL FUND EXPENDITURES FORECAST i2026-27 Estimate Adopted Forecast Forecast Forecast Forecast EXPENDITURES Employee Compensation 22,415,186 24,295,660 24,937,757 25,623,624 26,328,252 27,052,205 Employee Benefits 10,384,127 11,44Q636 11,711,801 11,898,716 11,608,381 11,667,211 Salary Savings - - (1,000,882) (1,024,554) (1,034,943) (1,055,934) Personnel Costs 32,799,313 35,736,296 35,648,675 36,497,786 36,901,690 37,663,482 Materials 7,455,733 7,226,073 7,478,986 7,688,397 7,880,607 8,061,861 Contract Services 24,983,910 25,019,032 26,242,420 27,344,403 28,413,200 29,469,609 Cost Allocation 11,948,062 10,385,961 10,671,575 10,965,043 11,266,582 11,576,413 Capital Outlay&Special Projects 30,117,147 3,657,378 2,373,773 2,440,238 2,501,244 2,558,773 Contingencies 400,881 451,739 405,899 417,264 427,695 437,532 Other Uses 967,497 695,000 - - - - _ Non-Personnel Costs 75,873,230 47,435,183 47,172,652 48,855,345 50,489,328 52,104,188 WW Transfers 26,124,371 11,996,300 12,320,818 JL1 12,434,974 12,544,172 12,645,931 TOTAL EXPENDITURES 134,796,914 95,167,779 95,142,145 JL97,788,106 99,935,190 102,413,602 As displayed in the chart above,General Fund expenditures are projected to be$95.2 million in FY 2022-23 and increase throughout the forecast. The main drivers of expenditure growth are employee compensation and contract services due to additional staffing, retirement rates, and increasing Law Enforcement costs. The following discussion focuses on the assumptions used for estimating each of the expenditure categories in the General Fund Forecast. Personnel Expenditures Salaries The City is currently negotiating with its bargaining groups because labor agreements expire on June 30, 2022. Due to the uncertainty, the forecast only accounts for step increases and changes in Ca1PERS retirement rates. The forecast does not include any cost-of-living adjustments(COLA)or equity adjustments. Employees who have yet to reach the top step in their classification's salary range are eligible to receive a step increase on their anniversary date. Typically, classifications have five steps, with each increase equivalent to a 5%increase in salary. Currently,approximately 41%of employees are below Step 5. Full-time salaries are projected to grow at a rate of 2.75% per year, based on the presumed rate of growth by Ca1PERS.Part-time salaries are forecasted to grow at a rate of 1.5%as they generally grow slower than full-time salaries. Health Benefits In FY 2022-23,health benefits account for about 7%of all personnel costs in the General Fund,primarily due to health insurance costs.The City pays employees a fixed amount for health and dental insurance costs instead of covering a percentage of premiums. In October 2016, City Council approved labor contracts that significantly increased the City's health insurance contributions to align the City with the median offerings of our comparator cities. For the duration of the contract, cost increases in health and dental premiums above the negotiated amounts were fully absorbed by employees. The City is in negotiations with its bargaining groups, CEA and OE3. FY 2022-23 Adopted Budget Financial Schedules 164 Retirement Benefits Rising retirement costs are driving the increase in employee benefits. Cupertino provides retirement benefits for its employees through the California Public Employee's Retirement System (CalPERS). Poor investment returns during the Great Recession significantly decreased the plan's assets. In addition,enhanced benefits and actuarial assumption changes due to increased life expectancies increased the plan's liabilities. As a result, the City's pension costs have increased significantly and are one of the City's largest financial obligations. The City's CalPERS costs are projected to increase over the next few years,as shown in the table below. FY 2022-23 FY 2023-24 FY Projected CalPERS Contributions Projected Payroll $ 21,566,041 $ 22,159,108 $ 22,768,483 $ 23,394,616 $ 24,037,969 $ 24,699,012 Normal Cost(%) 9.7% 9.5% 9.3% 9.1% 8.9% 8.8% Normal Cost $ 2,100,532 $ 2,105,115 $ 2,117,469 $ 2,128,910 $ 2,139,379 $ 2,173,513 UAL Payment $ 4,775,294 $ 5,126,000 $ 5,477,000 $ 5,326,000 $ 5,545,000 $ 5,027,000 Total Contribution $ 6,875,827,231,115 $ 7,594,469 $ 7,454,910 $ 7,684,379 $ 7,200,513 Total Contribution(%) Jh 31.9 32.60� 33.4% 31.9% 32.0%d� 29.2% In December 2016, the CalPERS Board of Administration lowered the discount rate from 7.5% to 7.0% with a three-year phase-in beginning in FY 2018-19 to improve the financial stability of the pension system. This resulted in significant increases in retirement costs.In FY 2021-22,the CalPERS Board lowered the discount rate from 7.0% to 6.8% because the FY 2020-21 investment gain of 21.3% triggered the Funding Risk Mitigation Policy. The City's retirement rates are based on a blend of all three tiers (2.7% @ 55, 2% @ 60, and 2% @ 62). Although employees pay a different rate depending on their tier,the City's costs are the same for all three tiers.The table below shows the current breakdown of City employees amongst the three retirement tiers. The majority of employees in the City are currently covered under Tier 3. Savings from the lower-cost Tier 2 and Tier 3 plans are not expected to be substantial for several years. EmployerCAPERS Plan Breakdown by Tier Tier Number of B enef it Factor Compensation Basis mplo Employees of Contribution of Contribution Contribution 1 58 2.7%@ 55 Highest Year 31.88% 8.00% 39.88% 2 19 2%@ 60 Highest 3 Year Average 31.88% 7.00% 38.88% 3 111 2%@ 62 Highest 3 Year Average 31.88% 7.00% 38.88% A retiree's highest monthly pension benefits are calculated by multiplying: • Service credit:the number of years of CalPERS service. . Benefit Factor:percentage of pay based on age. . Compensation Basis:the highest monthly average salary for a defined period. Other Benefits The forecast assumes health insurance, dental insurance, and vision insurance increase by CPI. No increases were forecasted for the following benefits:internet allowance, standby pay,Employee Assistance Program,and Deferred Compensation.Rec Bucks are assumed to increase at a 0.5%growth rate. Vacancy Savings The forecast assumes vacancy savings of 5 FTE annually,based on historical vacancy rates due to attrition. FY 2022-23 Adopted Budget Financial Schedules 165 Non-Personnel Expenditures Non-Personnel budgets were developed based on actual expenditures in prior years and then adjusted for FY 2022-23 funding needs. In addition, one-time projects have been excluded to ensure that expenditure trends reflect ongoing expenditure needs. For the out-years of the forecast,expenditures are projected to increase by CPI. Materials costs are forecasted to increase by CPI. Contract Services costs are projected to grow by CPI except for the Law Enforcement contract with the Santa Clara County Sheriff's Office. Law Enforcement costs are projected to grow by CPI plus 2%. Per the terms of the contract,the annual increase is limited to the lesser of: . Percentage increase in total compensation and annual Ca1PERS cost increase • Annual CPI plus 2%and annual CalPERS cost increase Increases in the City's Law Enforcement costs are a primary driver of the City's expenditure growth. Cost Allocation is projected to grow by 2.8%. Capital Outlays and Special Projects are projected to increase by CPI. In the last five years, the City has spent about $2 million per year in capital outlay and special project costs, excluding development projects that include pass-through revenue. Contingencies are projected to increase by CPI. Contingencies remain reduced in FY 2022-23. Program contingencies were cut in half to 2.5%in FY 2020-21, and the City Manager's Contingency Fund was reduced to $75,000 in FY 2021-22. In prior years, program contingencies were 5% of Materials and Contract Services, and the City Manager's Contingency was 5% of General Fund Materials and Contract Services, excluding the law enforcement contract. The City has historically underspent contingencies, and the use of these funds would require pre-approval by the City Manager or their designee. Transfers represent the General Fund's contributions to other City funds to support debt payments,pay retiree health costs, finance capital projects, replenish capital project reserves, acquire new equipment, and subsidize enterprises and operations. After the implementation of a comprehensive Cost Allocation Plan in FY 2015-16, General Fund expenses have been shifted to other City funds, causing some of those funds' revenues to fall short of expenses and necessitating the use of fund balances to cover expenses. The General Fund benefits in the near term from the cost shift; however, after fund balances in those other funds are drawn down to minimum levels and absent aggressive revenue or cost actions in those other funds,General Fund subsidies are necessary to maintain fund balance minimums. Projected General Fund subsidies to each fund are based on the following assumptions: • Special Revenue Funds:$3 million annually. . Debt Service Funds:$2.7 million based on the 2012 COPS debt service schedule. • Capital Reserve:$2.5 million annually. • Retiree Medical Fund:$0 million. • Compensated Absences Fund:$0.8 million and increases at a rate of 2.8%per year. . Innovation and Technology Fund:$2 million and increases at CPI annually. • Enterprise Funds:$1 million and increases at CPI per year. In FY 2029-30,the City will finish paying off its debt for city facilities.Until FY 2029-30,the City is scheduled to pay approximately $2.7 million per year in principal and interest on the City Hall, Community Hall, and Library Certificates of Participation. The funds are transferred from the City's General Fund to the City's Debt FY 2022-23 Adopted Budget Financial Schedules 166 Service Funds. Historically, the City has transferred funds from the General Fund to the Capital Reserve at mid-year. While mid-year fund transfers are typically significant,$10 million annually on average,there has been a high degree of variability. To facilitate Capital Improvement Program budget forecasting, the forecast allocates$2.5 million annually for transfers to the Capital Reserve. Starting in FY 2022-23, the City plans to fund Other Post-Employment Benefits (OPEB) costs with the City's Section 115 OPEB Trust because the City's OPEB plan is over 100% funded. The OPEB Trust had a balance of $36.1 million as of March 31, 2022. Funding OPEB costs with the OPEB Trust will eliminate the transfers from the General Fund to the Retiree Medical Fund. FY 2022-23 Adopted Budget Financial Schedules 167 Pension Ca1PERS The City provides a defined benefit pension to its employees through the California Public Employees' Retirement System (Ca1PERS). Retirement benefits are calculated using a formula based on an employee's age, earnings,and years of service.The retirement benefits are funded by: . Investment earnings(60%) • Employer contributions(29%) • Employee contributions(11%) Each year, Ca1PERS determines an employer's contributions based on actual investment returns and actuarial assumptions,including: • Expected investment returns(discount rates) • Inflation rates . Salaries • Retirement ages . Life expectancies Contributions to fund the pension plan are comprised of two components: • Normal cost(the cost of the benefits earned in a respective year) • Amortization of the unfunded accrued liability(UAL) Ca1PERS Discount Rate Defined benefit plans are highly sensitive to the discount rate assumption.The discount rate is the expected rate of return of the plan's assets over the long term. The discount rate will depend on the plan's size, asset allocation,time horizon,and other considerations. From the City's perspective, the discount rate is important as it is used to determine the City's annual contributions to the plan, the plan's unfunded liability, and the plan's funded status. In other words, the discount rate is used to determine whether a plan has enough assets to meet its future obligations. The discount rate must be realistic to allow the City to foresee funding issues that may impact future operating budgets and future generations of retirees and plan members. If the discount rate assumption is too high and investments earn less than expected, a funding shortfall may result, requiring the City or Ca1PERS members to make greater contributions than expected. Ca1PERS Investment Earnings Since investment earnings fund nearly 60% of retirement benefits, the City's pension plan is sensitive to the investment returns of Ca1PERS. Investment returns affect how much of the retirement benefits can be funded by investment earnings rather than contributions. If investment returns are lower than the discount rate, contributions must increase to make up the difference. As a result, pension plans need accurate return assumptions to ensure fiscal sustainability. Currently, Ca1PERS assumes it will earn investment returns of 6.8% each year. As illustrated in the following chart, over the last 20 years, CAPERS has earned investment returns below the discount rate assumption approximately half the time.Individual fiscal year investment returns have ranged between-24.0%and+21.7%. In particular, Ca1PERS earned negative investment returns in 2001 and 2002 due to the dot-com crash and in 2008 and 2009 due to the Great Recession. FY 2022-23 Adopted Budget Financial Schedules 168 CalPERS Historical Annual Investment Returns 21.7% 21.3% 19.1% 18.4% 16.6% 13.3% 13.2% 12.3°/q1 8% 11.2% 3.7% ' 2.4% 0.1% 0.6% 1 -6.1% -5.1% -7.2% MAnnual Investment Return —7%Discount Rate -24.0% , O'1 O'� O� O� OHO 01 O� O°� ti0 titi titi ti� yD 'yh N ti t N N O ,ti0 �y 00 Oy O`L O� OC Ob 0.0 O\ OCt Ooi y0 �y Y1' ti� yb y� y�o y�1 y'b yoi 10 y0 LO y0 ti0 ,LO ,LO ' 'ti ' 'y ,LO f5 LO ti0 LO ,LO y0 ti0 ti0 y0 ,LO Note:Beginning in 2002,investment returns are reported as gross of fees. For FY 2020-21, CalPERS reported an investment return of 21.3%. 14.3 percentage points higher than the 7% discount rate. The average investment return is 10.3%for a 5-year period, 8.5% for a 10-year period, 6.9%for a 20-year period, and 8.4%for a 30-year period. As returns in a given year are volatile, it can be more instructive to look at returns over longer time horizons. PeriodTime Total investment Return 1 Year 21.3% 5 Year 10.3% 10 Year 8.5% 20 Year 6.9% 30 Year 8.4% CalPERS Update Funding Risk Mitigation Policy Under the Funding Risk Mitigation Policy,the 21.3%return in FY 2020-21 triggered a reduction in the discount rate from 7%to 6.8%. The Funding Risk Mitigation Policy, approved by the CalPERS Board in 2005, lowers the discount rate in years of good investment returns to reduce risk in the portfolio.The Risk Mitigation Policy will affect contributions starting in FY 2023-24. FY 2022-23 Adopted Budget Financial Schedules 169 Asset Liability Management Process In November 2021, Ca1PERS completed its quadrennial Asset Liability Management (ALM) process, which reviewed investment strategies and actuarial assumptions. At the November 15-17, 2021, meetings, the Ca1PERS Board approved a 6.8% discount rate, selected a new asset allocation for the fund's investment portfolio,and adopted new actuarial assumptions. During the ALM process, the board examined different potential portfolios and their impact on the Ca1PERS fund.Ultimately,the board selected the portfolio with an assumed investment return of 6.8%. Asset Class Current Allocation New Allocation Global Equity 50% 42% Fixed Income 28% 30% Real Assets 13% 15% Private Equity 8% 13% Private Debt 0% 5% Liquidity 1% 0% The new portfolio includes a 5%allocation to leverage. Ca1PERS Plan Status As of the most recent actuarial valuation on June 30, 2020, the City's pension plan had assets of$103.8 million and liabilities of$157.6 million, resulting in an unfunded liability of$53.8 million and a funded ratio of 65.9%. The unfunded liability is the difference between assets and liabilities, while the funded ratio is the ratio of assets to liabilities. CalPERS Plan Status June i 2019 Present Value of Projected Benefits $ 174,248,022 $ 185,199,838 Entry Age Normal Accrued Liability $ 148,525,073 $ 157,610,543 Market Value of Assets $ 99,363,109 $ 103,788,993 Unfunded Accrued Liability $ 49,161,964 $ 53,821,550 Funded Ratio 66.9% 65.9% In May 2018, the City also established a Section 115 Pension Trust to reduce the effect of pension rate volatility on the City's budget. After factoring in the City's Section 115 Pension Trust, the funded status of the City's pension fund is 76.8%. A defined-benefit plan is considered adequately funded if its assets equal or exceed the value of its future liabilities.When the funded ratio is lower than 100%,the plan has insufficient assets to pay all future liabilities. The funded status of the system decreased because: • Poor investment returns during the Great Recession significantly decreased the plan's assets. . Enhanced benefits and actuarial assumption changes due to increased life expectancies increased the plan's liabilities. Over the past few years, CaIPERS has taken steps to improve the long-term financial sustainability of the system. In December 2016, the Ca1PERS board voted to reduce the discount rate, also known as the assumed rate of return for investments, from 7.5% to 7.0% over three years from FY 2018-19 to FY 2020-21. In February 2018, the Ca1PERS board also voted to decrease the amortization period for new pension liabilities from 30 years to 20 years, effective July 1, 2019. While these changes will provide long-term benefits to the pension plan,they will also increase the City's pension contributions. FY 2022-23 Adopted Budget Financial Schedules 170 Impact of Ca1PERS Investment Returns Ca1PER5 assumes it will earn investment returns of 7%each year. If investment returns are higher than 7%, the City's contributions decrease. On the other hand, if investment returns are lower than 7%, the City's contributions increase. In FY 2020-21, Ca1PERS earned an investment return of 21.3%, 14.3 percentage points above the 7% discount rate. The investment return triggered the Funding Risk Mitigation Policy, lowering the discount rate to 6.8%. The investment gain and discount rate reduction will impact the City's pension costs starting in FY 2023-24.The discount rate reduction partially offsets the effect of the investment gain. In FY 2027-28, when the investment gain is fully phased in, the City's annual costs are expected to be $1.3 million lower than previously projected. The FY 2020-21 investment gain will also increase the funded status of the City's plan. Challenging and volatile financial markets impacted FY 2021-22 investment returns. For FY 2021-22, Ca1PERS reported a preliminary investment return of-6.1%. The investment performance is expected to affect the City's pension contributions starting in FY 2024-25. In 2022, financial market volatility increased due to heightened geopolitical risk, supply chain bottlenecks and persistent inflation, and the Federal Reserve's pivot to a less accommodative monetary policy. Impact of Ca1PERS Discount Rate Changes Due to lower-than-historical interest rates and economic growth, market experts project lower returns for the next several decades. The Pew Research Center forecasts a long-term investment return of 6.5% for typical pension fund portfolios. During its Asset Management Liability Process, Ca1PERS considered discount rates between 6.25% and 7%. Ultimately,Ca1PERS approved a discount rate of 6.8%,a decrease from the previous discount rate of 7%. The discount rate has a significant effect on the City's Ca1PERS contributions.If the discount rate is less than the discount rate assumption, the City's Ca1PERS contributions will increase. If Ca1PERS lowers the discount rate by one percentage point, the City's contributions will increase by up to $2.9 million per year. This analysis would show the potential contribution impact if Ca1PERS were to lower the discount rate. Section 115 Trust A Section 115 Trust is a tax-exempt investment tool that allows local governments to pre-fund pension and retiree health costs. Once contributions are placed into the trust, the City can only use assets from the trust for retirement plan purposes. The City may make withdrawals to either reimburse the City for retirement system contributions or to pay Ca1PERS directly.The benefits of a Section 115 Trust include the following: . Local control over assets:The City controls the contributions,withdrawals,investment strategy, and risk level of assets in the Trust. • Pension rate stabilization: Assets can be transferred to Ca1PERS at the City's discretion to pay for Normal Cost or UAL contributions and can be used to reduce or eliminate large fluctuations in the City's pension costs. • Potential for higher investment returns than General Fund: Investment requirements applicable to the City's General Fund assets under Government Code 53601 do not apply to Trust assets. . Diversification:Trust assets will be diversified from Ca1PERS investments. FY 2022-23 Adopted Budget Financial Schedules 171 City Strategies Given that pension obligations are one of the City's largest financial obligations, the City has taken proactive steps to reduce the impact of pension cost volatility. In March 2018, the City provided options to Council to address rising pension costs. In April 2018, the City presented a long-term pension funding strategy to the Fiscal Strategic Plan Committee. In May 2018, the City established a Section 115 Pension Trust to reduce the effect of pension rate volatility on the City's budget.The Section 115 Pension Trust helps the City to: Grow assets for future pension contributions. . Invest assets over appropriate time horizons. Earn higher investment returns than the General Fund. Reduce pension contribution volatility. . Diversify funds from CalPERS investments. As a fiscal sustainability measure, the City funds the Section 115 Pension Trust using a more conservative discount rate of 6.25%.The City's pension funding goal is to accumulate sufficient funds in the Pension Trust to fund the difference between a 6.25% and a 7% discount rate and achieve a funded ratio of 80% over 20 years. The City's projections indicated that the City would need to accumulate over $42 million in the Pension Trust within 20 years to achieve its pension funding goal. As a result, the funding strategy proposed $8.0 million in initial funding, along with additional funding of $10.0 million over the first five years.The City has contributed$16.0 million,including: $8 million in FY 2018-19 $4 million in FY 2019-20 $2 million in FY 2020-21 $2 million in FY 2021-22 As of June 30,2022, the Section 115 Pension Trust had a balance of$17.2 million and had earned an annualized investment return of 3.94%gross of fees since inception. Investment returns were impacted by financial market volatility in 2022. Given the funding currently set aside for pension funding,the City is in a solid position to withstand the effects of pension cost increases. If CalPERS earns less than the discount rate assumption, the City will be better prepared for future pension cost increases. If CalPERS lowers the discount rate in the future, the City will be better prepared to absorb these costs. FY 2022-23 Adopted Budget Financial Schedules 172 Fund Balance The foresight of the City Council and staff in previous years to focus on ensuring healthy reserves is paying off in full. Increases in sales tax revenues and budget reductions in FY 2020-21 have contributed to this planning strategy and will provide additional resources for the City in the future. The General Fund's Unassigned fund balance remains healthy and will be able to assist in addressing funding gaps.In addition,the General Fund's Committed and Restricted fund balance includes: . Economic Uncertainty Reserve:may be used to mitigate potential shortfalls. • Capital Projects Reserve:may be used to fund capital projects. • Section 115 Pension Trust: may be used to mitigate potential increases to CalPERS's annual required contribution rate or further reductions in the discount rate set by CaIPERS. In FY 2022-23, the General Fund's total fund balance is projected to be $110.1 million, and the General Fund's Unassigned fund balance is projected to be$48.3 million. 20-Year General Fund Fund Balance Forecast $134.9M $139.1M $139.71M $137.51M $127.8M $110.6M $110.1M $57.9M $56.61M $60.81M $61.41M $59.2M $46.11M,$48.3M O�� —Unassigned Fund Balance —Total Fund Balance FY 2022-23 Adopted Budget Financial Schedules 173 FIVE-YEAR GENERAL FUND FUND BALANCE FORECAST I I I 1 I20263-27 AdoptedEstimate Beginning Fund Balance 96,850,790 110,610,704 110,104,313 115,303,161 117,945,192 121,026,607 Operating Revenue 143,861,842 94,661,388 100,340,993 100,430,137 103,016,605 105,413,113 erating Expenditures 134,796,914 95,167,779 95,142,145 97,788,106 99,935,190 102,413,602 et Revenues-Expenditures 9,064,928 (506,39 2,642,031 3,081,415 2,999,512 Unassigned 46,068,178 48,332,873 52,110,422 53,242,011 54,718,268 56,011,988 All Other Classifications 64,542,526 61,771,440 63,192,739 64,703,181 66,3M338 68,014,131 Ending Fund Balance IF10,610,704 110,104,311OWW15,303,161 117,945,192 121,026,607 124,026,118 FIVE-YEAR GENERAL FUND FUND BALANCE FORECAST 1 1 I 1 I2026-27 AdoptedEstimate Nonspendable Loans Receivable 444,000 440,000 440,000 435,000 430,000 425,000 Advance to Other Funds 3,000,000 - - - - - �otal Nonspendable 3,444,000 jL 440,000 440,000 1 435,000 430,000 &425,000 Restricted CASp Certification and Training 13,982 13,982 13,982 13,982 13,982 13,982 Section 115 Pension Trust 20,820,778 22,820,778 24,247,077 25,762,519 27,372,676 29,083,469 Public Access Television 1,368,789 1,368,789 1,368,789 1,368,789 1,368,789 1,368,789 22,203,549 24,203,549 25,629,848 27,145,290 28,755,44�W 30,466,240 Committed Economic Uncertainty Reserve 24,000,000 24,000,000 24,000,000 24,000,000 24,000,000 24,000,000 Capital Projects Reserve 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 Sustainability Reserve 127,891 127,891 127,891 127,891 127,891 127,891 otal Committed 34,127,891 34,127,891ff 34,127,891 31,127,891 34,127,891& 34,127,891 Assigned Reserve for Encumbrances 4,767,086 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Total Assigned 4,767,086 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 WFMMMW Total Unassigned 46,068,178 48,332,873 52,110,422 53,242,011 54,718,268 56,011,988 TOTAL FUND BALANCE 110,610,704 110,104,313 115,303,161 117,945,192 121,026,607 124,026,118 It is anticipated that the City will transfer any unassigned fund balance over the $500,000 threshold to the Capital Reserve, the Capital Projects Reserve, or the Section 115 Pension Trust as described in the City's Fund Balance and Use of One Time Funds Policy. The City can use funds in the Section 115 Pension Trust to offset unexpected increases in retirement contributions. Funds in the Section 115 Pension Trust are restricted and can only be used to pay Ca1PERS or reimburse the City for pension contributions. FY 2022-23 Adopted Budget Financial Schedules 174 Budget-Balancing Strategies Historically, the City's budget has been structurally sound, with revenues exceeding expenditures in most years. When revenues have exceeded expenditures, the City has transferred the excess fund balance to the Capital Reserve per the City's Fund Balance and Use of One Time Funds Policy.The current 5-year and 20-year forecasts anticipate operating deficits near the end of the forecast, beginning in FY 2040-41. The operating deficits are projected to increase as revenues grow at a slower pace than expenditures. As a result, the following strategies may be used to assist in balancing the budget over the next 20 years. Strategy Description Potential Impact Expenditures The City established a Section 115 Trust to reduce pension rate volatility when Ca1PERS investment the of June 30,2022, the reserve has a Section 115 Pension Trust returns are below the discount rate or when Ca1PERS balance of$17.2 changes assumptions.The City can also use it to offset million. pension costs. The General Fund Capital Projects Reserve may be The reserve has a Capital Projects Reserve balance of$10 used to fund capital projects. million. as a ve h Economic Uncertainty The General Fund Economic Uncertainty Reserve may balance The reserve Reserve be used to mitigate potential shortfalls. of$24 million. Additional Potential Strategies Although not recommended at this time, the City may consider the following potential strategies in future years if sharp declines in revenues or increases in expenditures cause large structural deficits. Potential Strategy Description Potential Impact Revenues Transaction and Use Tax(1/4 Voter approval is required � $5.2 million cent Could increase sales tax from 9.125%to 9.375% $1.7M @$10M base Voter approval is required Transient Occupancy Tax $1.25M at$7.5M Measure Could increase transient occupancy tax from 12%to base 14% $833k at$5M base FY 2022-23 Adopted Budget Financial Schedules 175 $3.5M flat rate per parcel Parcel Tax Voter approval is required $3.6M variable rate per SF Expenditures Salary and benefit savings Keep non-essential positions unfilled as they become Approximately through attrition vacant. $186,000 per position on average Employee cost-sharing of Negotiate to share costs of increases to Ca1PERS $250,000 increases to Ca1PERS employer rates with employees. approximate based on a 5%rate increase No new positions Cost containment strategy $0 Employees would take up to 20 hours or the equivalent $295,000 Furloughs of a 1%decrease in pay in exchange for 2.5 unpaid approximate based furlough days on a 1%decrease Deferring or eliminating The City's current labor agreements expire on June 30, $295,000 negotiated increases 2022.Deferring or eliminating negotiated increases approximate based would require agreement from the bargaining units. on a 1%decrease The City would identify what positions could be Approximately Reduction in force reduced(laid off)based on provisions in the MOUs $186,000 per position where appropriate and service level needs in the City. on average Reduction in capital outlays Cost containment strategy Up to$4 million and special projects Reduction in contingencies Cost containment strategy Up to$400,000 FY 2022-23 Adopted Budget Financial Schedules 176 Council and Commissions FY 2022-23 Adopted Budget Council and Commissions 177 This page intentionally left blank. FY 2022-23 Adopted Budget Council and Commissions 178 Department Overview Budget Units Budget Unit Program 2023 Adopted Budget City Council $655,864 100-10-100 City Council $499,627 100-10-101 Community Funding $92,231 100-10-110 Sister Cities $64,006 Commissions $650,512 100-11-131 Technology,Information&Communications Commission $39,481 100-11-140 Library Commission $51,371 100-11-142 Fine Arts Commission $73,624 100-11-150 Public Safety Commission $45,192 100-11-155 Bicycle and Pedestrian Commission $62,230 100-11-160 Parks and Recreation Commission $53,085 100-11-165 Teen Commission $46,076 100-11-170 Planning Commission $ 121,496 100-11-175 Housing Commission $61,468 100-11-180 Sustainability Commission $60,983 100-11-190 Audit Committee $35,506 Total $1,306,376 FY 2022-23 Adopted Budget Council and Commissions 179 Budget at a Glance 2023 Adopted Budget Total Revenues $830,532 Total Expenditures $1,306,376 Fund Balance $- General Fund Costs $475,844 %Funded by General Fund 36.4% Total Staffing 7.3 FTE Organization Darcy Paul,Mayor Liang Chao,Vice Mayor Kitty Moore,Council Member Hung Wei,Council Member Jon Willey,Council Member FY 2022-23 Adopted Budget Council and Commissions 180 Citizens of Cupertino City Council Audit Committee Bicycle Pedestrian Commission Design Review Environmental Committee Review Committee Economic Fine Arts Development Commission Commission Housing Legislative Review Commission Committee Library Parks and Recreation Commission Commission Planning Public Safety Commission Commission Sustainability Teen Commission Commission Technology, Information,and Communications Commission Adopted Budget On June 9, 2022, City Council approved a budget of$1,306,376 for the Council and Commissions department. This represents a decrease of$27,927(-2.1%)from the FY 2021-22 Adopted Budget. Contract Services have decreased due to reduced funding for the Community Funding program. Materials are higher than historical actuals because City Council technology budgets were not completely expended, and conference and training expenses were reduced due to the pandemic. FY 2022-23 Adopted Budget Council and Commissions 181 The following table shows the Council and Commissions budget broken down by: . City Council(includes City Council members) • City Council Support(includes staff supporting the City Council) • Commissions, Committees, and Sister Cities Support (includes staff supporting commissions, committees,and sister cities) Category City City Council Commissions,Committees,and Total g Council Support Sister Cities Support Benefitted Positions 5 0.85 1.43 7.28 Employee Compensation $47,284 $92,791 $212,237 $352,312 Employee Benefits $96,986 $61,893 $103,512 $262,391 Total Employee Compensation and Benefits $144,270 $154,684 $315,749 $614,703 FY 2022-23 Adopted Budget Council and Commissions 182 Adopted Expenditures by Division ■ City Council Commissions --.am i Department Expenditure History $1.33M $1.31M $957k $896k 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget FY 2022-23 Adopted Budget Council and Commissions 183 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $586,473 $954,826 $1,054,877 $830,532 Miscellaneous Revenue $- $10,986 $- $- Total Revenues $586,473 $965,812 $1,054,877 $830,532 Expenditures Employee Compensation $280,409 $327,344 $376,429 $352,312 Employee Benefits $158,895 $191,185 $259,737 $262,391 Materials $128,444 $101,704 $246,912 $256,738 Contract Services $147,776 $128,698 $182,053 $155,114 Cost Allocation $150,923 $206,675 $260,845 $271,261 Special Projects $29,202 $1,155 $- $- Contingencies $40 $- $8,327 $8,560 Total Expenditures $895,689 $956,761 $1,334,303 $1,306,376 Fund Balance $- $- $- $- General Fund Costs $309,217 $(9,049) $279,426 $475,844 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Council and Commissions 184 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 0.10 0.50 0.50 0.50 ASST DIR RECREATION COMM SVCS 0 0.05 0.05 0.15 CHIEF TECHNOLOGY OFFICER 0 0.02 0.02 0.02 COMMUNITY OUTREACH 0.10 0.10 0.10 0.10 SPECIALIST COUNCIL MEMBER 5.00 5.00 5.00 5.00 DEPUTY BOARD CLERK 0.25 0 0 0 DIRECTOR OF COMM 0.06 0.06 0.06 0.06 DEVELOPMENT DIRECTOR OF PARKS REC 0.05 0.05 0.05 0.05 EMERGENCY SERVICES 0 0.05 0.05 0.05 COORDINATOR EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50 FINANCE MANAGER 0 0.05 0.05 0.05 MANAGEMENT ANALYST 0 0.10 0.10 0.10 PLANNING MANAGER 0.10 0.10 0.10 0.10 PUBLIC INFORMATION OFFICER 0.25 0.15 0.15 0.15 RECREATION COORDINATOR 0.30 0.45 0.45 0 RECREATION MANAGER 0 0 0 0.10 RECREATION SUPERVISOR 0 0.05 0.05 0 SENIOR PLANNER 0.10 0 0 0 SR OFFICE ASSISTANT 0.40 0.20 0.20 0.20 SUSTAINABILITY MANAGER 0.10 0.05 0.05 0.05 TRANSPORTATION MANAGER 0 0.10 0.10 0.10 Total 7.31 7.58 7.58 7.28 FY 2022-23 Adopted Budget Council and Commissions 185 City Council Budget Unit 100-10-100 General Fund-City Council-City Council Budget at a Glance 2023 Adopted Budget Total Revenues $830,532 Total Expenditures $499,627 Fund Balance $- General Fund Costs $(330,905) %Funded by General Fund -66.2% Total Staffing 5.9 FTE Program Overview The Mayor and councilmembers, acting as the elected representatives of the residents of Cupertino, establish public policies to meet the community needs of the City. Service Objectives The City Council objectives are carried out by City staff under the sole direction of the City Manager. Adopted Budget On June 9, 2022, City Council approved a budget of$499,627 for the City Council program. This represents an increase of$19,877(4.1%)from the FY 2021-22 Adopted Budget. This is due to an increase in health insurance costs related to health plan options. Materials are higher than historical actuals because the Mayor's Fund and City Council technology budgets have not been completely expended. The following table shows the City Council budget broken down by: • City Council(includes City Council members) • City Council Support(includes staff supporting the City Council) Category City Council City Council Support Total Benefitted Positions 5 0.85 5.85 Employee Compensation $47,284 $92,791 $140,075 Employee Benefits $96,986 $61,893 $158,879 Total Employee Compensation and $144,270 $154,684 $298,954 Benefits FY 2022-23 Adopted Budget Council and Commissions 186 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $586,473 $954,826 $1,054,877 $830,532 Miscellaneous Revenue $- $2,625 $- $- Total Revenues $586,473 $957,451 $1,054,877 $830,532 Expenditures Employee Compensation $123,015 $115,634 $137,839 $140,075 Employee Benefits $100,030 $99,883 $142,382 $158,879 Materials $91,900 $88,650 $175,529 $177,126 Contract Services $12,416 $8,626 $19,133 $18,653 Cost Allocation $39,560 $- $- $- Special Projects $29,202 $1,155 $- $- Contingencies $- $- $4,867 $4,894 Total Expenditures $396,123 $313,948 $479,750 $499,627 Fund Balance $- $- $- $- General Fund Costs $(190,350) $ (643,502) $(575,127) $ (330,905) Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget COMMUNITY OUTREACH 0.10 0.10 0.10 0.10 SPECIALIST COUNCIL MEMBER 5.00 5.00 5.00 5.00 EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50 PUBLIC INFORMATION OFFICER 0.15 0.10 0.10 0.10 SR OFFICE ASSISTANT 0.10 0.15 0.15 0.15 Total 5.85 5.85 5.85 5.85 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Council and Commissions 187 Community Funding Budget Unit 100-10-101 General Fund-City Council-Community Funding Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $92,231 Fund Balance $- General Fund Costs $92,231 %Funded by General Fund 100.0% Total Staffing FTE Program Overview The Community Funding program provides funding for various community activities and community-based organizations throughout the fiscal year. Service Objectives • Provide funding to local non-profit organizations in the areas of social services, fine arts and other programs for the general public. • Grant funding requests in a fair and equitable manner. • Grant funding requests per the updated Community Funding Policy adopted by City Council on December 1,2020. Adopted Budget On June 9, 2022, City Council approved a budget of $92,231 for the Community Funding program. This represents a decrease of$26,428(-22.3%)from the FY 2021-22 Adopted Budget. The decrease is due to reduced funding for the Community Funding program in FY 2022-23. The table below shows community funding for FY 2021-22 and FY 2022-23. FY 2022-23 Adopted Budget Council and Commissions 188 Non-Profit Organization FY 2021-22 FY 2021-22 FY 2022-23 FY 2022-23 Funding Program/Project/Event Funding Program/Project/Event American Cancer Society N/Al N/Al $6,000 Relay for Life of Silicon Valley North Breathe California of the N/Al N/Al $4,000 Seniors Breathe Easy Bay Area Buddhist Tzu Chi Medical N/Al N/Al $8,300 Healthy Cupertino Foundation Health Fair Chinese American Mindfully Facing Grief Coalition for $12,000 Starting the Conversation and Mindful Self-Care $13,000 and Loss and Starting Compassionate Care the Conversation Omniware Networks N/Al N/A1 $2,000 Peace Love Unity Youth Art Contest Exhibition Senior Services-Heart of N/A1 N/A1 $6,161 COVID Car Kit the Valley West Valley Community Services of Santa Clara $10,000 Gift of Hope Holiday $10,000 Gift of Hope 2022 County,Inc Program Technical Support for Women SV N/Al N/Al $20,000 Domestic Abuse Survivors Cupertino Library Empower and Connect 2 2 Foundation $15,000 Seniors Program N/A N/A Buddhist Tzu Chi Medical $7,400 Community Health Fair N/A2 N/A2 Foundation Santa Clara Valley Wildlife&Harvest Festival z 2 Audubon Society $8,500 Video Production N/A N/A Friends of Deer Hollow $7,000 Enclosed Garden Space N/A2 N/A2 Farm Valkyrie Robotics $3,000 Mini-Robot Competition N/A2 N/A2 Tian Hong Foundation $3,000 Cross-cultural Art Contest N/A2 N/A2 Rotary Club of Cupertino $12,000 Fall Festival N/A2 N/A2 Events, Euphrat Museum of Art $15,000 Exhibition, N/A2 N/A2 Community Outreach Monta Vista High School Program Staffing and 2 2 Speech Boosters Inc $3,000 Materials Support N/A N/A Cupertino Historical $20,000 Museum and Archive N/A 3 N/A 3 Society Support Total 115,900 69,461 FY 2022-23 Adopted Budget Council and Commissions 189 1Organization did not apply for or receive a Community Funding Grant in FY 2021-22. 2Organization did not apply for or receive a Community Funding Grant in FY 2022-23. 3Funding was unknown at the time of budget adoption. City Council is considering funding separately. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Miscellaneous Revenue $- $8,361 $- $- Total Revenues $- $8,361 - Expenditures Contract Services $ 114,800 $110,000 $115,900 $89,461 Cost Allocation $787 $ 1,240 $2,259 $2,270 Contingencies $- $- $500 $500 Total Expenditures $115,587 $111,240 $118,659 $92,231 Fund Balance $- $- $- $- General Fund Costs $115,587 $102,879 $118,659 $92,231 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Council and Commissions 190 Sister Cities Budget Unit 100-10-110 General Fund-City Council-Sister Cities Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $64,006 Fund Balance $- General Fund Costs $64,006 %Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview Cupertino has four active sister cities registered with Sister Cities International; Toyokawa, Japan; Hsinchu, Taiwan;Copertino,Italy;and Bhubaneswar,India. Service Objectives • To further international communication and understanding through the Sister City Program • To foster educational,technical,economic and cultural exchanges . To encourage student exchange programs to promote communication and understanding among people of different cultures Adopted Budget On June 9, 2022, City Council approved a budget of $64,006 for the Sister Cities program. This represents a decrease of$13,576(-17.5%)from the FY 2021-22 Adopted Budget. The decrease in Cost Allocation expenses is due to no recruitments in FY 2020-21. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Council and Commissions 191 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $17,141 $12,301 $13,229 $12,005 Employee Benefits $6,767 $5,727 $5,956 $6,066 Materials $5,016 $768 $5,830 $5,830 Contract Services $9,560 $4,235 $20,000 $20,000 Cost Allocation $11,398 $37,129 $31,921 $19,459 Contingencies $- $- $646 $646 Total Expenditures $49,882 $60,160 $77,582 $64,006 Fund Balance $- $- $- $- General Fund Costs $49,881 $60,160 $77,582 $64,006 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget PUBLIC INFORMATION OFFICER 0.10 0.05 0.05 0.05 SR OFFICE ASSISTANT 0.30 0.05 0.05 0.05 Total 0.40 0.10 0.10 0.10 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Council and Commissions 192 Technology, Information & Communications Commission Budget Unit 100-11-131 General Fund-Commissions-Technology,Information&Communications Commission Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $39,481 Fund Balance $- General Fund Costs $39,481 %Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The Technology,Information&Communications Commission(TICC)advises the City Council and informs the community about issues relating to the rapidly changing fields of communication and technology. Commissioners also serve as a resource for the Planning Commission in offering technical guidance for antenna sightings. The Chief Technology Officer serves as staff liaison. The commission also supports public and educational access to cable services. Service Objectives . Continue to work with appropriate companies in bringing advanced services to interested residents. • Monitor AT&T and Comcast services and revenue. • Negotiate and manage public access provider KMVT to ensure maximum programming value for Cupertino residents. • Work with Community Development and Public Works regarding antenna placement and negotiate agreements for communication services that serve Cupertino. Adopted Budget On June 9, 2022, City Council approved a budget of $39,481 for the Technology, Information & Communications Commission program. This represents an increase of $2,356 (6.3%) from the FY 2021-22 Adopted Budget. The increase is due to increased Cost Allocation expenses for Finance. The Technology, Information & Communications Commission pays for support from Finance through the Cost Allocation Plan. FY 2022-23 Adopted Budget Council and Commissions 193 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $4,171 $9,860 $10,116 $10,116 Employee Benefits $1,889 $3,476 $4,580 $4,675 Materials $107 $- $1,218 $1,348 Contract Services $- $- $5,000 $5,000 Cost Allocation $1,207 $3,650 $16,056 $18,183 Contingencies $- $ - $155 $159 Total Expenditures $7,374 $16,986 $37,125 $39,481 Fund Balance $- $- $- $- General Fund Costs $7,374 $16,986 $37,125 $39,481 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05 CHIEF TECHNOLOGY OFFICER 0 0.02 0.02 0.02 Total 0.05 0.07 0.07 0.07 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Council and Commissions 194 Library Commission Budget Unit 100-11-140 General Fund-Commissions-Library Commission Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $51,371 Fund Balance $- General Fund Costs $51,371 %Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The Library Commission is a five-member commission appointed by the City Council to review and make recommendations related to the operations and services of the Cupertino Library. The Cupertino Library is operated by Santa Clara County Library Services. The building is provided by the City of Cupertino. County Library management serve as Commission staff and a Parks and Recreation Department Recreation Manager serves as the City staff liaison. Service Objectives • Monitor the various service activities of the library and make recommendations for improvements to appropriate bodies. • Support library advocacy groups, including Friends of the Cupertino Library and Cupertino Library Foundation. • Consult with and act as liaison with private community groups supportive of Library programs. . Represent the Cupertino library in the local community. • Participate in state and local library workshops and conferences. • Participate in the long-range planning of quality library services for the City. . Investigate ways to expand access to non-traditional media. • Continue library advocacy in Cupertino activities and with other organizations. • Coordinate and implement the annual Cupertino Poet Laureate program and provide staff support and City resources to sustain the program. • Continue emphasis on integrating additional technology into library services. Adopted Budget On June 9, 2022, City Council approved a budget of $51,371 for the Library Commission program. This represents an increase of$3,030(6.3%)from the FY 2021-22 Adopted Budget. This increase is mainly due to increases in Cost Allocation expenses. Cost Allocation expenses increased due to a recruitment in FY 2020-21. FY 2022-23 Adopted Budget Council and Commissions 195 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $5,892 $6,612 $20,220 $10,563 Employee Benefits $840 $3,040 $10,136 $5,465 Materials $589 $137 $344 $389 Contract Services $- $366 $2,020 $2,000 Cost Allocation $11,479 $14,126 $15,562 $32,894 Contingencies $- $- $59 $60 Total Expenditures $18,800 $24,281 $48,341 $51,371 Fund Balance $- $- $- $- General Fund Costs $18,801 $24,281 $48,341 $51,371 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 0 0.05 0.05 0.05 ASST DIR RECREATION COMM 0 0.05 0.05 0 SVCS RECREATION MANAGER 0 0 0 0.05 RECREATION SUPERVISOR 0 0.05 0.05 0 Total 0 0.15 0.15 0.10 Staff time is being reallocated based on the reorganization of the Department and duties assigned. FY 2022-23 Adopted Budget Council and Commissions 196 Fine Arts Commission Budget Unit 100-11-142 General Fund-Commissions-Fine Arts Commission Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $73,624 Fund Balance $- General Fund Costs $73,624 %Funded by General Fund 100.0% Total Staffing 0.2 FTE Program Overview The Fine Arts Commission is a five member commission appointed by the City Council to foster, encourage and assist the realization,preservation and advancement of fine arts for the benefit of the citizens of Cupertino. The Assistant Director of Parks and Recreation serves as the staff liaison. Service Objectives • Act as a catalyst for the promotion of fine arts activities and provide liaison and coordination between fine arts activities,groups,and facilities. • Enhance the interaction between arts and businesses through personal outreach. • Review and approve public art proposals. • Review and select deserving artists in recognition of local talent through the Distinguished, Emerging, and Young Artist Awards. • Encourage and facilitate"art in unexpected places"throughout the City. Adopted Budget On June 9, 2022, City Council approved a budget of $73,624 for the Fine Arts Commission program. This represents an increase of$7,156(10.8%)from the FY 2021-22 Adopted Budget. The increase is mainly due to increases in Employee Compensation and Benefits, as a result of the reorganization of the Department. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Council and Commissions 197 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $17,260 $14,378 $14,920 $28,378 Employee Benefits $6,589 $8,531 $9,309 $11,769 Materials $3,258 $2,949 $6,673 $6,926 Contract Services $- $3,671 $10,000 $10,000 Cost Allocation $12,688 $22,787 $25,149 $16,128 Contingencies $40 $- $417 $423 Total Expenditures $39,835 $52,316 $66,468 $ 73,624 Fund Balance $- $- $- $- General Fund Costs $39,836 $52,316 $66,468 $ 73,624 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ASST DIR RECREATION COMM 0 0 0 0.15 SVCS DEPUTY BOARD CLERK 0.05 0 0 0 RECREATION COORDINATOR 0 0.15 0.15 0 SENIOR PLANNER 0.10 0 0 0 Total 0.15 0.15 0.15 0.15 Staff time is being reallocated based on the reorganization of the Department and duties assigned. FY 2022-23 Adopted Budget Council and Commissions 198 Public Safety Commission Budget Unit 100-11-150 General Fund-Commissions-Public Safety Commission Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $45,192 Fund Balance $- General Fund Costs $45,192 %Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The Public Safety Commission (PSC), a five-member board appointed by the City Council, assists the Council by advising on matters pertaining to safety, traffic, police, fire and other areas wherein the matter of public safety may be of concern. Service Objectives • Advise the City Council on safety issues and concerns. . Promote public education programs concerning safety issues. • Provide assistance in implementing public safety programs approved by the City Council. Adopted Budget On June 9, 2022, City Council approved a budget of$45,192 for the Public Safety Commission program. This represents an increase of$9,586(26.9%)from the FY 2021-22 Adopted Budget. In anticipation of potential COVID-19 surges, the budget includes additional funds to host and logistically support the Public Safety Forum outdoors in Civic Center Plaza. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Council and Commissions 199 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $1,141 $5,148 $7,785 $7,785 Employee Benefits $591 $2,475 $4,030 $4,116 Materials $1,460 $100 $4,496 $10,288 Contract Services $10,000 $- $10,000 $10,000 Cost Allocation $993 $8,514 $8,933 $12,496 Contingencies $- $- $362 $507 Total Expenditures $14,185 $16,237 $35,606 $45,192 Fund Balance $- $- $- $- General Fund Costs $14,185 $16,238 $35,606 $45,192 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget EMERGENCY SERVICES 0 0.05 0.05 0.05 COORDINATOR Total 0 0.05 0.05 0.05 FY 2022-23 Adopted Budget Council and Commissions 200 Bicycle and Pedestrian Commission Budget Unit 100-11-155 General Fund-Commissions-Bicycle and Pedestrian Commission Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $62,230 Fund Balance $- General Fund Costs $62,230 %Funded by General Fund 100.0% Total Staffing 0.2 FTE Program Overview The Bicycle and Pedestrian Commission (BPC) is a five-member board appointed by the City Council, which assists the Council by reviewing, monitoring, and making recommendations on City transportation matters pertaining to bicycle and pedestrian traffic, parking, education, and recreation within Cupertino. The City's Transportation Manager serves as staff liaison. Service Objectives • Review and make recommendations on City transportation infrastructure, development standards, public and private development projects,and citizen outreach and education efforts as they affect bicycle and pedestrian traffic in the City of Cupertino. • Promote safe,efficient,and enjoyable travel for bicycle and pedestrian traffic within Cupertino. Adopted Budget On June 9, 2022, City Council approved a budget of $62,230 for the Bicycle and Pedestrian Commission program.This represents an increase of$14,499(30.4%)from the FY 2021-22 Adopted Budget. The increase is due to an increase in Cost Allocation expenses. Cost Allocation expenses increased due to a recruitment in FY 2020-21. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Council and Commissions 201 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $- $21,519 $24,606 $24,704 Employee Benefits $- $8,638 $12,212 $12,502 Materials $- $ - $202 $210 Cost Allocation $807 $825 $10,706 $24,809 Contingencies $- $ - $5 $5 Total Expenditures $807 $30,982 $47,731 $62,230 Fund Balance $- $- $- $- General Fund Costs $807 $30,982 $47,731 $62,230 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ADMINISTRATIVE ASSISTANT 0 0.05 0.05 0.05 TRANSPORTATION MANAGER 0 0.10 0.10 0.10 Total 0 0.15 0.15 0.15 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Council and Commissions 202 Parks and Recreation Commission Budget Unit 100-11-160 General Fund-Commissions-Parks and Recreation Commission Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $53,085 Fund Balance $- General Fund Costs $53,085 %Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The Parks and Recreation Commission is a five-member commission appointed by the City Council to make recommendations pertaining to parks, recreation, and community services. The Director of Parks and Recreation serves as staff liaison. Service Objectives • Engage the public in dialog regarding the design of new facilities. . Make recommendations regarding these projects to the City Council. • Work with staff and the public to draft and/or revise policies for use of Parks and Recreation facilities. • Consider public input regarding the operation of Parks and Recreation facilities and make recommendations for their improvement. . Participate in special committees dealing with Parks and Recreation. • Serve as ambassadors for the Parks and Recreation Department. Adopted Budget On June 9,2022,City Council approved a budget of$53,085 for the Parks and Recreation Commission program. This represents a decrease of$4,378(-7.6%)from the FY 2021-22 Adopted Budget. The decrease is mainly due to a reduction in Cost Allocation expenses. Cost Allocation expenses decreased due to no recruitments in FY 2020-21. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Council and Commissions 203 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $17,828 $15,968 $17,280 $17,531 Employee Benefits $3,765 $6,403 $7,610 $7,455 Materials $1,207 $- $7,442 $7,724 Cost Allocation $12,165 $19,376 $24,945 $20,182 Contingencies $- $- $186 $193 Total Expenditures $34,965 $41,747 $57,463 $53,085 Fund Balance $- $- $- $- General Fund Costs $34,965 $41,747 $57,463 $53,085 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ADMINISTRATIVE ASSISTANT 0.05 0.05 0.05 0.05 DIRECTOR OF PARKS REC 0.05 0.05 0.05 0.05 Total 0.10 0.10 0.10 0.10 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Council and Commissions 204 Teen Commission Budget Unit 100-11-165 General Fund-Commissions-Teen Commission Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $46,076 Fund Balance $- General Fund Costs $46,076 %Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The Teen Commission is comprised of nine teens representing grades 8-11. The Teen Commission advises the City Council and staff on teen issues. A Parks and Recreation Department Recreation Manager serves as the staff liaison. Service Objectives • Engage the public in dialogue regarding the design of new teen programs and make recommendations regarding these projects to City staff. • Assist staff with the programming and promotion of the Teen Center. • Assist staff with the evaluation of teen programming. • Work with staff and the public to create new avenues to interact with teens. Adopted Budget On June 9,2022, City Council approved a budget of$46,076 for the Teen Commission program.This represents a decrease of$35,002(-43.2%)from the FY 2021-22 Adopted Budget. The decrease is mainly due to decreases in Employee Compensation and Benefits, as a result of the reorganization of the Department. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Council and Commissions 205 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $29,503 $32,154 $29,840 $6,300 Employee Benefits $12,360 $ 13,118 $14,640 $5,748 Materials $5,556 $49 $4,514 $4,685 Cost Allocation $16,728 $28,449 $31,971 $29,226 Contingencies $- $- $113 $117 Total Expenditures $64,147 $73,770 $81,078 $46,076 Fund Balance $- $- $- $- General Fund Costs $64,147 $73,771 $81,078 $46,076 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget RECREATION COORDINATOR 0.30 0.30 0.30 0 RECREATION MANAGER 0 0 0 0.05 Total 0.30 0.30 0.30 0.05 Staff time is being reallocated based on the reorganization of the Department and duties assigned. FY 2022-23 Adopted Budget Council and Commissions 206 Planning Commission Budget Unit 100-11-170 General Fund-Commissions-Planning Commission Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $ 121,496 Fund Balance $- General Fund Costs $121,496 %Funded by General Fund 100.0% Total Staffing 0.3 FTE Program Overview The Planning Commission is a five-member citizen board appointed by the City Council. The functions of the Planning Commission are as follows: . Advise the City Council on land use and development policy related to the General Plan; • Implement the General Plan through review and administration of specific plans and related ordinances; • Review land use applications for conformance with the General Plan and ordinances;and • Promote the coordination of local plans and programs with regional and other agencies. Service Objectives • Conduct periodic reviews of the General Plan. These reviews test the fundamental goals and measure the performance of short-term objectives. • Conduct public hearings for approximately 80 land development applications every year. Ensure that decisions are made fairly and expeditiously in accordance with adopted General Plan policies, zoning ordinances,development plans,and design guidelines. . Review specific plans, zoning ordinance amendments, and amendments to the General Plan and make recommendations to Council. • Serve on the Planning Commission Design Review Committee, the Environmental Review Committee, and in an advisory role to the Housing Commission and Economic Development Committee. Adopted Budget On June 9, 2022, City Council approved a budget of $121,496 for the Planning Commission program. This represents a decrease of$9,749(-7.4%)from the FY 2021-22 Adopted Budget. The decrease is primarily due to a decrease in employee compensation due to a change in staff. FY 2022-23 Adopted Budget Council and Commissions 207 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $32,741 $39,547 $40,557 $34,949 Employee Benefits $11,231 $14,806 $18,610 $15,248 Materials $18,766 $8,488 $33,715 $34,997 Cost Allocation $18,624 $30,715 $37,520 $35,427 Contingencies $- $- $843 $875 Total Expenditures $81,362 $93,556 $131,245 $121,496 Fund Balance $- $- $- $- General Fund Costs $81,362 $93,556 $131,245 $121,496 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 0 0.20 0.20 0.20 DEPUTY BOARD CLERK 0.15 0 0 0 DIRECTOR OF COMM 0.06 0.06 0.06 0.06 DEVELOPMENT Total 0.21 0.26 0.26 0.26 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Council and Commissions 208 Housing Commission Budget Unit 100-11-175 General Fund-Commissions-Housing Commission Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $61,468 Fund Balance $- General Fund Costs $61,468 %Funded by General Fund 100.0% Total Staffing 0.2 FTE Program Overview The Cupertino Housing Commission(CHC)is a five-member board appointed by the City Council to assist the Planning Commission and the City Council in developing housing policies and strategies for implementation of General Plan Housing Element goals. The Commission also oversees the Community Development Block Grant(CDBG)program. Service Objectives . Assist the Planning Commission and the City Council in developing housing policies and strategies for implementation of general plan housing element goals; • Recommend policies for implementation and monitoring of affordable housing projects; • Facilitate innovative approaches to affordable housing development and to generate ideas and interest in pursuing a variety of housing options; • When requested by the Director of Community Development or the City Council, to make recommendations to the Planning Commission and the City Council regarding affordable housing proposals in connection with applications for development. . Make recommendations regarding requests for money from the CDBG and Affordable Housing Funds; • Provide information about affordable housing; • Meet with neighborhood, community, regional and business groups as necessary to receive input and assist in generating affordable housing; . Help identify sources of funds to develop and build affordable housing;and . Perform any other advisory functions authorized by the City Council. Adopted Budget On June 9, 2022, City Council approved a budget of $61,468 for the Housing Commission program. This represents a decrease of$1,293(-2.1%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged since last fiscal year. FY 2022-23 Adopted Budget Council and Commissions 209 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $19,925 $22,012 $24,668 $24,783 Employee Benefits $9,156 $10,366 $12,241 $12,135 Materials $244 $163 $989 $1,027 Cost Allocation $12,510 $21,610 $24,838 $23,497 Contingencies $- $- $25 $26 Total Expenditures $41,835 $54,151 $62,761 $61,468 Fund Balance $- $- $- $- General Fund Costs $41,835 $54,150 $62,761 $61,468 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ADMINISTRATIVE ASSISTANT 0 0.05 0.05 0.05 DEPUTY BOARD CLERK 0.05 0 0 0 PLANNING MANAGER 0.10 0.10 0.10 0.10 Total 0.15 0.15 0.15 0.15 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Council and Commissions 210 Sustainability Commission Budget Unit 100-11-180 General Fund-Commissions-Sustainability Commission Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $60,983 Fund Balance $- General Fund Costs $60,983 %Funded by General Fund 100.0% Total Staffing 0.2 FTE Program Overview The Sustainability Commission is a five-member board appointed by the City Council to serve in an advisory capacity by providing expertise and guidance on major policy and programmatic areas related to the environmental, economic and societal goals noted within Cupertino's Climate Action Plan and General Plan Environmental Resources/Sustainability Element. Service Objectives . Monitor implementation of the Climate Action Plan based upon quantified metrics to measure and evaluate mitigated impacts and community benefits. • Suggest recommendations, review, and monitor the City's General Plan Environmental Resources/Sustainability Element and its intersections with the CAP. • Advise the City Council how to strategically accelerate Cupertino's progress towards sustainability and recommend priorities to promote continued regional leadership in sustainability. . Periodically review policies governing specific practices and programs, such as greenhouse gas emissions reduction, water conservation, renewable energy, energy efficiency, materials management, and urban forestry. Illustrative examples include the creation of infrastructure for low emissions vehicles, installation of renewable energy or energy efficiency technologies, drafting of water conservation or waste reduction policies, delivery of habitat restoration and conservation programs, design and roll-out of pollution prevention campaigns,etc. . Make recommendations regarding the allocation of funds for infrastructure and technology improvements to elevate the operational performance of City facilities, businesses, educational institutions,and homes by reducing costs,improving public health,and serving community needs. . Accept public input on the subject areas noted above and advise the City Council on ways to drive community awareness, behavior change, education and participation in City programs modeled upon the field's best practices. . Review and make recommendations to the City Council on Federal, State and regional policies related to sustainability that have the potential to impact City Council's goals and policies. • Pursue any other activity or scope that may be deemed appropriate and necessary by the City Council. FY 2022-23 Adopted Budget Council and Commissions 211 Adopted Budget On June 9, 2022, City Council approved a budget of$60,983 for the Sustainability Commission program. This represents a decrease of$2,055(-3.3%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues $- $- $- $- Expenditures Employee Compensation $11,792 $18,431 $20,618 $21,648 Employee Benefits $5,674 $9,704 $11,189 $11,776 Materials $341 $400 $5,960 $6,188 Contract Services $1,000 $1,800 $- $- Cost Allocation $11,977 $ 18,254 $25,122 $21,216 Contingencies $- $- $149 $155 Total Expenditures $30,784 $48,589 $63,038 $60,983 Fund Balance $- $- $- $- General Fund Costs $30,784 $48,589 $63,038 $60,983 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MANAGEMENT ANALYST 0 0.10 0.10 0.10 SUSTAINABILITY MANAGER 0.10 0.05 0.05 0.05 Total 0.10 0.15 0.15 0.15 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Council and Commissions 212 Audit Committee Budget Unit 100-11-190 General Fund-Commissions-Audit Committee Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $35,506 Fund Balance $- General Fund Costs $35,506 %Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview The Audit Committee, consisting of two City Council members and a minimum of two and a maximum of three at large members,hold the following powers and functions: • To review the annual audit report and management letter. • To recommend appointment of internal/external auditors. • To review the monthly Treasurer's report. . To recommend a budget format. • To review City investment policies and internal controls of such policies. • To review internal audit reports. The Audit Committee meets monthly. The Finance Manager serves as staff liaison. Service Objectives • To review the annual audit report and management letter; • To recommend appointment of internal/external auditors; • To review the monthly Treasurer's report; • To recommend a budget format; • To review City investment policies and internal controls of such policies. . To review internal audit reports. Adopted Budget On June 9, 2022, City Council approved a budget of$35,506 for the Audit Committee program. This represents an increase of$8,050(29.3%)from the FY 2021-22 Adopted Budget. The increase in Cost Allocation expenses is due to the allocation of staffing to this program in FY 2020-21. FY 2022-23 Adopted Budget Council and Commissions 213 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $- $13,780 $14,751 $13,475 Employee Benefits $3 $5,018 $6,842 $6,557 Cost Allocation $- $- $5,863 $15,474 Total Expenditures $3 $18,798 $27,456 $35,506 Fund Balance $- $- $- $- General Fund Costs $3 $18,798 $27,456 $35,506 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ADMINISTRATIVE ASSISTANT 0 0.05 0.05 0.05 FINANCE MANAGER 0 0.05 0.05 0.05 Total 0 0.10 0.10 0.10 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Council and Commissions 214 Administration FY 2022-23 Adopted Budget Administration 215 This page intentionally left blank. FY 2022-23 Adopted Budget Administration 216 Department Overview Budget Units Budget Unit Program 2023 Adopted Budget City Manager $7,089,953 100-12-120 City Manager $2,219,722 100-12-122 Sustainability $813,464 100-12-126 Office of Communications $1,019,517 100-12-305 Multimedia $438,792 100-12-307 Public Access Support $79,249 100-12-632 Community Outreach and Neighborhood Watch $213,823 100-12-633 Office of Emergency Management $1,706,493 100-12-705 Economic Development $598,893 City Clerk $909,333 100-13-130 City Clerk $719,419 100-13-132 Duplicating and Mail Services $49,075 100-13-133 Elections $140,839 City Manager Discretionary $75,000 100-14-123 City Manager Contingency $75,000 City Attorney $1,574,133 100-15-141 City Attorney $1,574,133 Total $9,648,419 FY 2022-23 Adopted Budget Administration 217 Budget at a Glance 2023 Adopted Budget Total Revenues $2,469,823 Total Expenditures $9,648,419 Fund Balance $- General Fund Costs $7,178,596 %Funded by General Fund 74.4% Total Staffing 24.3 FTE Organization Jim Throop,City Manager Dianne Thompson,Assistant City Manager Christopher Jensen,City Attorney Kirsten Squarcia,City Clerk FY 2022-23 Adopted Budget Administration 218 City Manager's Office City Manager Assistant City Manager Department Heads Department Heads Administrative Services Public Works Executive Innovation and Technology Community Development Assistant Parks and Recreation City Clerk Deputy City Manager Deputy City Assistant to the Clerk City Manager Management k[fAssistant inistrative Analyst n Communications Emergency ISustainabili ty Economic Senior Office Development Assistant Officer Manager Manager Mana er Emergency Communications Management Climate and Analyst Analyst Utilities Analyst Community Citizen Corps Outreach Coordinator Specialist Communications Block Leader Assistant Coordinator Multimedia Communications Specialist(1.5) City Attorney's Office City Attorney Legal Services Manager Senior Assistant City Attorney FY 2022-23 Adopted Budget Administration 219 Performance Measures City Clerk Division Goal: Streamline information processing for Council, staff, and community members for compliance with State requirements and facilitate independent and transparent access to public information. Benefit:All can fully participate in local government to achieve the community&organizational goals. FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target City Council minutes for meetings presented for Council approval by the 100% 100% 100% 100% following regular meeting Adopted City Council resolutions and ordinances processed and scanned to 60% 80% 80% 100% Laserfiche within a week of Clerk's office receipt of final,signed document Public Record Act requests responded 100% 100% 100% 100% to by the Statutory deadline date Office of Communications Goal: Promote and increase interest and participation in City services, programs, initiatives, and projects while building community pride and positive identification with the City among its residents. Benefit:Residents have access to timely,engaging, and important information. FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target Social media engagement:total number of followers including City 10%annual 31,906 35,177 37,367 Hall Nextdoor,Facebook,Twitter,and increase Instagram accounts Social media engagement:average number of engagements(reactions, 10%annual 72.3 66.5 85.1 comments,shares,and clicks)per post increase on City Hall Facebook account Cupertino 311:Average response time Average Close to customers organization-wide(in 2.8 Days 3.5 Days 3.3 Days Time 5 Days days): Sustainability Division Goal: Implement Cupertino's Climate Action Plan and General Plan Sustainability Element to achieve quantifiable emissions reductions, conserve finite resources, and achieve utility cost avoidance and savings FY 2022-23 Adopted Budget Administration 220 across municipal operations and community partners. Benefit: Cupertino is a healthy, resilient, environmentally-vibrant city for current and future residents to live, work,learn and play. Performance Measure FY 2020 FY 2021 FY 2022 Ongoing July-June July-June July-Dec Target %community-wide emissions reduced 15%reduction by from baseline of 307,288 MT CO2e/yr 1 2018 inventory:24%decrease in emissions from 2020(261,195 MT baseline(258,659 MT CO2e/yr) CO2e/yr) Initiate and implement all Climate Action Plan near-term measures: %initiated 100% 100% 100% 100% %complete or ongoing 79% 79% 79% 100% %municipal operations emissions 2018 inventory:66%reduction in emissions from 15%reduction by reduced from baseline of 1,865 MT baseline:642 MTCO2e 2020 CO2e/yr 1 Cupertino's GHG inventories are conducted roughly every 3-5 years. Economic Development Division Goal: To actively pursue opportunities in the areas of business attraction, retention, and expansion as a means of promoting economic vitality, and strengthening the City's sales tax base to support Cupertino's excellent quality of life for its residents,businesses,and daytime population. Benefit: Cupertino's economy and sales tax revenue base are diversified to further enhance the City's financial stability and its ability to provide quality amenities to the community. FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target Maintain Economic Development 2,000 2,500 2,500 2,800 Business Connect Subscribers Economic Development Business 11 3* 2 12 per year Workshops&Events *limited due to COVID Multimedia Division Multimedia Division has been moved under the Innovation&Technology Department. FY 2022-23 Adopted Budget Administration 221 Workload Indicators City Clerk Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec City Council minutes for regular meetings presented for Council approval by the 22/22 15/15 25/25 following regular meeting Adopted City Council resolutions and ordinances processed and scanned to 182/272;12/18 148/185;10/12 45/56;7/9 Laserfiche within a week of Clerk's office receipt of final,signed document Public Record Act requests responded to by 104/104 94/94 139/139 the Statutory deadline date Office of Communications Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Social Media Engagement:Post per year 1,182 1,634 595 (Facebook,Nextdoor,Twitter,Instagram) Number of Projects Created on Engage N/A N/A 6 Cupertino Number of Community Information and Outreach Program products provided 373 248 105 (newsletters,press releases,website news postings) FY 2022-23 Adopted Budget Administration 222 Sustainability Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Number of local businesses visited/reached out to as part of GreenBiz program outreach 36 6 7 (est) Events related to increasing awareness of reducing greenhouse gas emissions in the 10 7 15 community(staff organized or staff tabled) (est) Sustainability related metrics tracked and/or 90 90 90 analyzed(est) Climate Action Plan action steps initiated or 64 94 99 implemented(est) FY 2022-23 Adopted Budget Administration 223 Economic Development Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Meetings with large groups/organizations; appointments with brokers,prospective 78* 68* 19 business owners,business owners and operators,City staff,etc. Special events,including small business workshops and seminars,ICSC conferences and events,ribbon cuttings and grand N/A N/A 3 openings,and Small Business Saturday Celebration Presentations to local organizations and N/A N/A 0 visiting delegations. Respond to call and email inquires N/A N/A 20 *This is an estimate based on the best information available Multimedia Division Multimedia Division has been moved under the Innovation&Technology Department. Adopted Budget On June 9, 2022, City Council approved a budget of $9,648,419 for the Administration department. This represents an increase of$2,018,790(26.5%)from the FY 2021-22 Adopted Budget. The increase in Employee Compensation and Benefits is due to the addition of new positions and the insourcing of the City Attorney's Office. The transition from outsourced to in-house attorneys has increased compensation and benefits and decreased contract services. The increase from FY 2019-20 actuals to FY 2022-23 is primarily due to compensation and benefits and special projects that vary from year to year. Employee Compensation and Benefits increased due to the addition of new positions, the transfer of programs from other City departments to the City Manager's Office, and the insourcing of the City Attorney's Office. Special Projects increased because new special projects were added in FY 2022-23. Materials are higher than historical actuals because conference and training budgets were not completely expended due to the pandemic. FY 2022-23 Adopted Budget Administration 224 Adopted Expenditures by Division ■ City Manager City Attorney ■ City Clerk City Manager Discretionary Department Expenditure History $9.65M $7.63M $6.70M $6.06M 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget FY 2022-23 Adopted Budget Administration 225 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $33,209 $45,516 $- $1,000,000 Charges for Services $1,137,815 $1,399,287 $1,739,136 $1,469,823 Miscellaneous Revenue $14,494 $19,634 $- $- Total Revenues $1,185,518 $1,464,437 $1,739,136 $2,469,823 Expenditures Employee Compensation $1,860,354 $2,606,217 $2,944,170 $4,091,919 Employee Benefits $699,664 $1,061,161 $1,288,316 $1,777,576 Materials $297,319 $327,504 $425,135 $535,812 Contract Services $2,702,604 $1,973,653 $2,237,070 $1,362,790 Cost Allocation $469,747 $481,712 $513,713 $468,859 Special Projects $31,841 $247,344 $120,900 $1,289,000 Contingencies $- $- $100,325 $122,463 Total Expenditures $6,061,529 $6,697,591 $7,629,629 $9,648,419 Fund Balance $- $- $- $- General Fund Costs $4,876,011 $5,233,153 $5,890,493 $7,178,596 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administration 226 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 0 0 0 1.00 ASSISTANT CITY MANAGER 1.00 1.00 1.00 2.00 ASSIST TO THE CITY MNGR 1.00 1.00 1.00 0 CITY ATTORNEY 0 0 0 1.00 CITY CLERK 1.00 1.00 1.00 1.00 CITY MANAGER 1.00 1.00 1.00 1.00 COMMUNICATIONS ANALYST 0 0 0 1.00 COMMUNITY OUTREACH SPECIALIST 1.20 1.20 1.20 0.90 COMMUNITY RELATIONS COORD 0.75 0.75 0.75 1.00 DEPUTY CITY CLERK 1.00 1.00 1.00 1.00 DEPUTY CITY MANAGER 0 0 0 1.00 ECONOMIC DEVELOPMENT 1.00 0 0 1.00 MANAGER EMERGENCY SERVICES 1.00 0.95 0.95 0.95 COORDINATOR ENVIRONMENTAL PROGRAMS 0 0.35 0.35 0.35 ASSISTANT EXEC ASST TO THE CITY COUNCIL 0.50 0.50 0.50 0.50 LEGAL SERVICES MANAGER 1.00 1.00 1.00 1.00 LEGISLATIVE AIDE 0 0 0 1.00 MANAGEMENT ANALYST 0.70 1.70 2.70 2.70 MULTIMEDIA COMMUNICATIONS 0 3.00 3.00 1.50 SPEC PUBLIC INFORMATION OFFICER 0.75 0.85 0.85 0.85 SENIOR ASSISTANT CITY ATTORNEY 0 0 0 1.00 SR OFFICE ASSISTANT 1.60 1.80 1.80 1.80 SUSTAINABILITY MANAGER 0.70 0.75 0.75 0.75 Total 14.20 17.85 18.85 24.30 FY 2022-23 Adopted Budget Administration 227 City Manager Budget Unit 100-12-120 General Fund-City Manager-City Manager Budget at a Glance 2023 Adopted Budget Total Revenues $631,098 Total Expenditures $2,219,722 Fund Balance $- General Fund Costs $1,588,624 %Funded by General Fund 71.6% Total Staffing 6.9 FTE Program Overview The City Manager is responsible to the City Council for the effective and efficient operation of the City. Under the direction of the City Council as a whole,the City Manager carries out the City's goals and objectives. Service Objectives . Accomplish the Council-approved City Work Program. • Manage City operations. • Ensure all laws and ordinances of the City are duly enforced and that all franchises, permits, licenses, and privileges granted by the City are faithfully performed and observed. • Advise the City Council on policy,and the financial conditions and needs of the City. . Investigate all complaints concerning the operation of the City. • Prepare reports and initiate recommendations as may be desirable or as requested by the City Council. • Ensure that the City's policies and procedures provide a foundation for a secure financial position. Adopted Budget On June 9, 2022, City Council approved a budget of$2,219,722 for the City Manager program. This represents an increase of$697,901 (45.9%)from the FY 2021-22 Adopted Budget. This increase is primarily due to the addition of the Assistant City Manager and Legislative Aide positions, which the City Council added via motion at the Proposed Budget Study Session. The Assistant City Manager will oversee strategic planning and outreach, especially in legislative issues and advocacy, oversee outreach to the communities (residents, developers, and property owners), and oversee engagement with affordable housing developers on various ways to deliver low-income and middle-income housing. The Legislative Aide will support the City Council on legislative matters and government relations. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Administration 228 Special Project Appropriation Revenue Source Funding Description Strategic Goal City Work Program:Research best Safe Gun practices for safe gun storage from Storage $12,000 $12,000 General Fund neighboring jurisdictions.Adopt Quality of Life Ordinance safe gun storage ordinance to increase public safety for residents. Total $12,000 $12,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $33,209 $36,716 $- $- Charges for Services $401,525 $452,422 $637,444 $631,098 Total Revenues $434,734 $489,138 $637,444 $631,098 Expenditures Employee Compensation $760,394 $885,438 $964,238 $1,427,444 Employee Benefits $269,702 $310,212 $402,900 $590,183 Materials $37,468 $14,328 $49,338 $53,887 Contract Services $91,435 $137,342 $101,572 $131,572 Cost Allocation $40,423 $- $- $- Special Projects $- $17,432 $- $12,000 Contingencies $- $- $3,773 $4,636 Total Expenditures $1,199,422 $1,364,752 $1,521,821 $2,219,722 Fund Balance $- $- $- $- General Fund Costs $764,687 $875,614 $884,377 $1,588,624 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administration 229 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ASSISTANT CITY MANAGER 1.00 1.00 1.00 2.00 ASSIST TO THE CITY MNGR 1.00 1.00 1.00 0 CITY MANAGER 1.00 1.00 1.00 1.00 DEPUTY CITY MANAGER 0 0 0 1.00 EXEC ASST TO THE CITY 0 0.50 0.50 0.50 COUNCIL LEGISLATIVE AIDE 0 0 0 1.00 MANAGEMENT ANALYST 0 1.00 1.00 1.00 SR OFFICE ASSISTANT 0.40 0.40 0.40 0.40 Total 3.40 4.90 4.90 6.90 In FY 2021-22, the Assistant to the City Manager position was reclassified to Deputy City Manager. At the Proposed Budget Study Session, City Council made a motion to add Assistant City Manager and Legislative Aide positions. FY 2022-23 Adopted Budget Administration 230 Sustainability Budget Unit 100-12-122 General Fund-City Manager-Sustainability Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $813,464 Fund Balance $- General Fund Costs $813,464 %Funded by General Fund 100.0% Total Staffing 1.8 FTE Program Overview The Sustainability Division works to implement the City's Climate Action Plan, provides subject matter expertise and coordinates across departments in building public good through activities that reduce greenhouse gas emissions, conserves scarce resources, prioritize public health and prepare for the impacts of climate change.In this capacity,the program teams with regional partners and adjacent jurisdictions,and seeks grant funding to develop collective approaches to implement the City's ambitious Climate Action Plan. Service Objectives • Collect and analyze relevant data to demonstrate municipal compliance with current and increasing state and federal regulations. • Serve as a technical resource on sustainability initiatives by preparing staff reports, developing local policies and ordinances, coordinating educational events, and making presentations to Council, City departments, and applicable outside organizations. . Coordinate municipal and community-wide greenhouse gas emissions inventories, develop emissions targets, execute a community-wide climate action plan, and track progress to achieve emissions reductions over time. • Expand existing compliance-focused environmental services to offer innovative energy, water, and resource conservation programs that effectively engage employees and community members. • Evaluate existing departmental programs and benchmark environmental achievements on an ongoing basis. • Research tools and best practices for efficient utility management and conservation and adapt these to the City's organizational culture,operations,and budgets. . Manage or perform resource audits, identify energy conservation and renewable energy generation opportunities,calculate feasibility and develop projects that are cost-effective and conserve resources. • Develop effective partnerships that empower students and community members as environmental leaders. FY 2022-23 Adopted Budget Administration 231 Adopted Budget On June 9, 2022, City Council approved a budget of$813,464 for the Sustainability program. This represents a decrease of$52,956(-6.1%)from the FY 2021-22 Adopted Budget. The decrease is due to a large special project, the update to the Climate Action Plan, completed in FY 2021-22. The decrease in Cost Allocation expenses is due to decreased City Attorney costs and fewer Human Resources recruitments for Sustainability in FY 2020-21. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriations Revenue Source Funding Description Strategic Goal Graphic design and editing Climate Action support for a public-facing, "user- Plan Vision $10,000 $10,000 General Fund friendly"vision and executive Summary summary document for the Document newly adopted Climate Action Plan Update City Work Program:Conduct public outreach,policy research, Electrification and coordinate with regional Sustainability Study $50,000 $50,000 General Fund efforts to develop policy options and Fiscal for electrification of Cupertino's Strategy buildings and transportation systems. Total $60,000 $60,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administration 232 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Miscellaneous Revenue $14,494 $ 1,450 $- $- Total Revenues $14,494 $1,450 $- $- Expenditures Employee Compensation $161,002 $221,141 $273,730 $291,223 Employee Benefits $80,086 $112,596 $131,482 $137,241 Materials $10,204 $7,581 $29,955 $34,755 Contract Services $60,747 $48,853 $94,379 $104,379 Cost Allocation $116,846 $208,182 $249,106 $182,388 Special Projects $20,174 $63,299 $84,400 $60,000 Contingencies $- $- $3,368 $3,478 Total Expenditures $449,059 $661,652 $866,420 $813,464 Fund Balance $- $- $- $- General Fund Costs $434,564 $660,201 $866,420 $813,464 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ENVIRONMENTAL PROGRAMS 0 0.35 0.35 0.35 ASSISTANT MANAGEMENT ANALYST 0.70 0.70 0.70 0.70 SUSTAINABILITY MANAGER 0.70 0.75 0.75 0.75 Total 1.40 1.80 1.80 1.80 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Administration 233 Office of Communications Budget Unit 100-12-126 General Fund-City Manager-Office of Communications Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $1,019,517 Fund Balance $- General Fund Costs $1,019,517 %Funded by General Fund 100.0% Total Staffing 3.7 FTE Program Overview The Office of Communications is responsible for community outreach to ensure that residents have access to timely, useful, and important information. The Office of Communications oversees and maintains many of the City's lines of communication with residents, including the City's website, social media accounts, monthly newsletter,videos, event tabling, flyers, and press releases.The Office of Communications also acts as a liaison between various City departments and the community when it comes to communicating information about projects and events. Service Objectives • Serve as the communications link between the City of Cupertino and residents . Ensure that the community has easy access to important, useful, and timely information through various forms of media including print,online,and video • Build community pride and positive identification with the City among residents . Increase interest and participation in City services,projects,and activities • Promote City Council and departmental goals,initiatives,programs,and services • Assist in creating better internal and external communication . Enhance the City's relationship with the news media Adopted Budget On June 9,2022,City Council approved a budget of$1,019,517 for the Office of Communications program.This represents an increase of$310,562(43.8%)from the FY 2021-22 Adopted Budget. The increase in budget is primarily due to the addition of the community survey that was typically done every other year and the addition of a three-year Limited-Term Communications Analyst to support strategic outreach throughout the City. There is also additional funding for increased marketing and outreach and two City Work Program projects. FY 2022-23 Adopted Budget Administration 234 Special Projects The following table shows the special projects for the fiscal year. Special Funding Appropriation Revenue Description Strategic Goal Project Source City Work Program:The plan should include all possible outreach channels,traditional media, Integrated newspaper,including Chinese and Public Plan for General other languages,City Channel,the Engagement Community $30,000 $30,000 Fund Scene,social media and influencers. and Engagement community leaders,community Transparency groups,HOAs,block leader programs,Chamber and other business groups etc. Community City Work Program:Educate and Public Engagement encourage resident use of alternative Engagement on $12,000 $12,000 General transportation to the Library.Install and rn Alteative Fund Aran Alternative on signage to point to overflow parking Transparency/ and Parking at Eaton Elementary school. Transportation Total $42,000 $42,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administration 235 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $260,873 $- $- $- Total Revenues $260,873 $- $- $- Expenditures Employee Compensation $266,759 $318,479 $347,178 $449,061 Employee Benefits $103,636 $135,743 $160,426 $212,471 Materials $97,245 $137,495 $154,755 $187,478 Contract Services $34,762 $18,827 $39,856 $120,800 Cost Allocation $28,441 $ - $- $- Special Projects $- $- $- $42,000 Contingencies $- $- $6,740 $7,707 Total Expenditures $530,843 $610,544 $708,955 $1,019,517 Fund Balance $- $- $- $- General Fund Costs $269,970 $610,544 $708,955 $1,019,517 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget COMMUNICATIONS ANALYST 0 0 0 1.00 COMMUNITY OUTREACH 1.20 1.20 1.20 0.90 SPECIALIST PUBLIC INFORMATION OFFICER 0.75 0.85 0.85 0.85 SR OFFICE ASSISTANT 0.70 0.90 0.90 0.90 Total 2.65 2.95 2.95 3.65 Staffing includes the addition of one three-year Limited Term Communications Analyst to support strategic communications throughout the City. FY 2022-23 Adopted Budget Administration 236 Multimedia Budget Unit 100-12-305 General Fund-City Manager-Multimedia Budget at a Glance 2023 Adopted Budget Total Revenues $354,821 Total Expenditures $438,792 Fund Balance $- General Fund Costs $83,971 %Funded by General Fund 19.1% Total Staffing 1.5 FTE Program Overview In FY 2020-21, this program transferred from Innovation Technology to the City Manager's Office. Historical data can be found under Budget Unit 100-31-305. The primary goal of the Multimedia Division is to increase public awareness,interest,understanding, and participation in the issues,programs, and services presented by the City of Cupertino. The staff promotes City services and programs through its 24/7 government access channel,radio station, digital signage network,City website,and numerous online video platforms.In addition, the video staff provides multimedia production services and technical support for all City departments. Multimedia staff also oversees the design, maintenance, and engineering of the City's broadcast and audiovisual systems. Service Objectives Multimedia staff works together to manage and maintain the following city services: • City Channel, the government access television channel which provides 24/7 information to Cupertino residents, includes full coverage of city meetings, community events, town hall forums, press conferences, election coverage, and local speaker series, as well as educational programming and state government affairs programming • Webcasting and video on demand services for live streaming city meetings, events, and other programs of interest • Radio Cupertino for emergency and community information for public service announcements, traffic alerts,and weather forecasts • Digital signage to promote city programs and events via electronic displays in city facilities • Multimedia production services and maintenance of city video equipment Adopted Budget On June 9, 2022, City Council approved a budget of $438,792 for the Multimedia program. This represents a decrease of$477,555(-52.1%)from the FY 2021-22 Adopted Budget. FY 2022-23 Adopted Budget Administration 237 The decrease is due to transferring 1.5 positions and a portion of materials and contracts to the Video program in Innovation Technology. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Field Lighting Lighting Equipment Package $10,000 $10,000 General Fund Upgrade Total $10,000 $10,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $- $8,800 $- $- Charges for Services $- $293,110 $414,196 $354,821 Total Revenues $- $301,910 $414,196 $354,821 Expenditures Employee Compensation $- $465,372 $500,123 $303,932 Employee Benefits $- $196,887 $215,203 $101,391 Materials $- $60,650 $60,521 $1,406 Contract Services $- $74,066 $110,597 $21,491 Special Projects $- $104,963 $25,000 $10,000 Contingencies $- $- $4,903 $572 Total Expenditures $- $901,938 $916,347 $438,792 Fund Balance $- $- $- $- General Fund Costs $- $600,027 $502,151 $83,971 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administration 238 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget MULTIMEDIA COMMUNICATIONS 0 3.00 3.00 1.50 SPEC Total 0 3.00 3.00 1.50 There are changes to the current level of staffing, as a portion of Multimedia/Video is transferring to Innovation Technology. FY 2022-23 Adopted Budget Administration 239 Public Access Support Budget Unit 100-12-307 General Fund-City Manager-Public Access Support Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $79,249 Fund Balance $- General Fund Costs $79,249 %Funded by General Fund 100.0% Total Staffing FTE Program Overview The City assists in the funding of the KMVT Community Access Television Program. Service Objectives • Encourage Cupertino-based individuals and groups to use the community television production facilities for the purpose of expressing their interests, concerns, and ideas in a socially responsible manner. • Provide professional training in hands-on video production by providing access to television equipment,computers,and software that would be otherwise out of reach of the average person. • Provide workshops on all aspects of television production--including how to run a video camera, photography,editing,visual effects,social media,podcasting,and video blogging. • Assist individuals and community groups to develop and produce programs for broadcast on the community access channel. Adopted Budget On June 9, 2022, City Council approved a budget of $79,249 for the Public Access Support program. This represents a decrease of$282(44%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administration 240 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Contract Services $- $70,961 $75,120 $75,120 Cost Allocation $- $3,022 $2,533 $2,251 Contingencies $- $- $1,878 $1,878 Total Expenditures $- $73,983 $79,531 $ 79,249 Fund Balance $- $- $- $- General Fund Costs $- $73,983 $79,531 $ 79,249 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Administration 241 Community Outreach and Neighborhood Watch Budget Unit 100-12-632 General Fund-City Manager-Community Outreach and Neighborhood Watch Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $213,823 Fund Balance $- General Fund Costs $213,823 %Funded by General Fund 100.0% Total Staffing 1.0 FTE Program Overview Community Outreach programs facilitate communication and enhance cultural understanding in Cupertino neighborhoods. Block Leaders are instrumental in building connected communities, delivering timely and pertinent information to neighbors, and providing input to the City. Neighborhood Watch enhances public safety by providing crime prevention information to local businesses and residents. The program promotes an active relationship between the community and the Sheriff's Office. Service Objectives . Aid in the development, implementation, and coordination of City programs and community-building activities designed to bring Cupertino neighborhoods together. • Coordinate and disseminate useful and important information to Cupertino residents through regular meetings and communications that build relationships and strengthen neighborhoods. • Facilitate collaboration with Emergency Preparedness and Neighborhood Watch programs. . Train residents to connect and organize neighbors and neighborhoods. • Get Block Leaders involved in the Parks and Recreation System Master Plan. • Create and implement Neighborhood Watch meetings and groups. . Disseminate important City news and safety information. • Organize and conduct annual National Night Out initiative. Adopted Budget On June 9, 2022, City Council approved a budget of$213,823 for the Community Outreach and Neighborhood Watch program.This represents an increase of$41,931 (24.4%)from the FY 2021-22 Adopted Budget. The increase in compensation and benefits is due to the addition of 0.25 FTE. The Community Relations Coordinator increased from 0.75 FTE to 1 FTE in FY 2021-22. FY 2022-23 Adopted Budget Administration 242 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $104,593 $83,627 $55,908 $92,579 Employee Benefits $37,535 $38,468 $34,044 $47,518 Materials $3,346 $5,971 $11,386 $14,818 Cost Allocation $43,100 $56,874 $68,769 $58,538 Special Projects $- $- $1,500 $- Contingencies $- $- $285 $370 Total Expenditures $188,574 $184,940 $171,892 $213,823 Fund Balance $- $- $- $- General Fund Costs $188,574 $184,940 $171,892 $213,823 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted Budget 2023 Adopted Budget Actual Actual COMMUNITY RELATIONS 0.75 0.75 0.75 1.00 COORD Total 0.75 0.75 0.75 1.00 The Community Relations Coordinator increased from 0.75 FTE to 1 FTE in FY 2021-22. FY 2022-23 Adopted Budget Administration 243 Office of Emergency Management Budget Unit 100-12-633 General Fund-City Manager-Office of Emergency Management Budget at a Glance 2023 Adopted Budget Total Revenues $1,000,000 Total Expenditures $1,706,493 Fund Balance $- General Fund Costs $706,493 %Funded by General Fund 41.4% Total Staffing 2.0 FTE Program Overview The mission of the Office of Emergency Management is to lead and direct the City in prevention, preparation, mitigation,response, and recovery from all emergencies,hazards,incidents,and events. Service Objectives . Develop and implement the goals and objectives of Cupertino's Office of Emergency Management. • Maintain the City's Emergency Operations Center(EOC)in a perpetual state of operational readiness. • Support Citizen Corps including the Block Leader Program, Neighborhood Watch, Community Emergency Response Team (CERT), Cupertino Amateur Radio Emergency Service (CARES), and Medical Reserve Corps(MRC). . Prepare,test,and revise emergency response and recovery policies,plans,and procedures in compliance with the California Emergency Services Act, the Standardized Emergency Management System (SEMS), and the National Incident Management System(NIMS). • Coordinate training of City staff in personal preparedness,SEMS/NIMS,and EOC functions. • Maintain effective liaison with local, state, and national emergency management organizations and/or allied disaster preparedness and response agencies. Adopted Budget On June 9, 2022, City Council approved a budget of $1,706,493 for the Office of Emergency Management program.This represents an increase of$1,011,759(145.6%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from the FY 2021-22 budget. The increase in Contract Services is due to additional EOC training and the continuation of the personal preparedness program, which was a special project in FY 2021-22. FY 2022-23 Adopted Budget Administration 244 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $- $- $- $ 1,000,000 Total Revenues $- $- $- $1,000,000 Expenditures Employee Compensation $126,289 $171,115 $305,225 $302,775 Employee Benefits $37,900 $72,593 $139,281 $148,923 Materials $27,158 $11,595 $42,799 $61,108 Contract Services $320 $- $7,139 $14,200 Cost Allocation $106,193 $128,820 $188,792 $177,604 Special Projects $- $61,650 $10,000 $1,000,000 Contingencies $- $- $1,498 $1,883 Total Expenditures $297,860 $445,773 $694,734 $1,706,493 Fund Balance $- $- $- $- General Fund Costs $297,860 $445,773 $694,734 $706,493 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget EMERGENCY SERVICES 1.00 0.95 0.95 0.95 COORDINATOR MANAGEMENT ANALYST 0 0 1.00 1.00 Total 1.00 0.95 1.95 1.95 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Administration 245 Economic Development Budget Unit 100-12-705 General Fund-City Manager-Economic Development Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $598,893 Fund Balance $- General Fund Costs $598,893 %Funded by General Fund 100.0% Total Staffing 1.0 FTE Program Overview In FY 2021-22, this program was transferred to the City Manager's Office. Historical data can be found in Budget Unit 100-71-705 in Community Development. The Economic Development program specifically targets business retention, expansion, and attraction with a focus on small business development, in order to support the City's financial stability. Service Objectives . Provide assistance and support to businesses to enable job creation, new business formation, private investment,and industry evolution. • Conduct outreach to existing small businesses to create strong working relationships. . Collaborate with internal city team members to keep the needs of businesses in the forefront when reviewing applications and projects. • Partner with local business associations, agencies, and organizations to create a strong and cohesive network offering business support and assistance. . Provide the public with current data and information easily accessible online or in printed format.Assist with policy formation to align with business and community goals. Adopted Budget On June 9,2022,City Council approved a budget of$598,893 for the Economic Development program. The Economic Development Manager was transferred from the Community Development to the Administration department. The Economic Development Manager, previously a part-time position, also became a full-time position in FY 2021-22. Special projects include Economic Development Strategy Outreach and Cupertino Store Implementation, a City Work Program project. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Administration 246 Special Project Appropriation Revenue FundingDescription Strategic Goal Source City Work Program:With some help from the Fine Arts Commission for some of the items with art designed by community members,items would be designed and selected for the store,for sale to the public,and also Cupertino Store General available for exchange Public Implementation $145,000 $145,000 Fund purposes for formal Engagement and delegations to and from the Transparency City,with an at-cost charge structure for the latter purposes.For the 2022-2023 FY,the Cupertino store will be online only.Staff will present a plan to the Council on item selection and art design selection. Support outreach and Economic engagement with stakeholders Development $20,000 $20,000 General to share the draft strategy and Strategy Fund secure feedback to develop Outreach and design key messages around recommendations Total $165,000 $165,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administration 247 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $40,726 $- $- $180,045 Employee Benefits $14,011 $1,221 $- $76,832 Materials $42,055 $33,890 $- $69,629 Contract Services $213,350 $149,994 $- $62,308 Cost Allocation $32,159 $50,406 $- $41,781 Special Projects $11,667 $- $- $165,000 Contingencies $- $- $- $3,298 Total Expenditures $353,968 $235,511 $- $598,893 Fund Balance $- $- $- $- General Fund Costs $353,968 $235,511 $- $598,893 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ECONOMIC DEVELOPMENT 1.00 0 0 1.00 MANAGER Total 1.00 0 0 1.00 In FY 2021-22, the Economic Development Manager position was transferred from the Community Development Department to the Administration Department. FY 2022-23 Adopted Budget Administration 248 City Clerk Budget Unit 100-13-130 General Fund-City Clerk-City Clerk Budget at a Glance 2023 Adopted Budget Total Revenues $121,651 Total Expenditures $719,419 Fund Balance $- General Fund Costs $597,768 %Funded by General Fund 83.1% Total Staffing 3.5 FTE Program Overview The City Clerk's office responsibilities include administrative duties associated with the City Council's agenda and actions; publishing legal notices; posting notice of all commission vacancies; processing codification of City's Municipal Code; records management; compliance with Public Records Act requests; manages official elections;and provides partial mail service for all City Departments. Service Objectives • Ensure compliance with the Brown Act open meetings requirements, Maddy Act Commission vacancy requirements and the Public Records Act, to accurately process documents and maintain a records management system that facilitates timely access to information,including digital access to City records. • Provide complete,accurate and timely information to the public,staff and City Council. . Respond to internal routing requests within two working days; respond to internal requests requiring archival research within five working days. . Respond to Public Record Act requests within the time specified by State law. • Provide a digital City Council packet to members of the City Council and staff for use on mobile devices. • Process and sort routine incoming and outgoing mail and packages daily for each department. Adopted Budget On June 9, 2022, City Council approved a budget of $719,419 for the City Clerk program. This represents an increase of$116,086(19.2%)from the FY 2021-22 Adopted Budget. The increase in Employee Compensation and Benefits is due to the addition of an Administrative Assistant. The Administrative Assistant will provide a variety of support to the City Clerk's Division, including preparing meeting agendas,processing Public Records Act requests,campaign finance forms,ethics certificates, lobbyist registration applications, and general records management. The staff time needed for these functions has increased over the past years. FY 2022-23 Adopted Budget Administration 249 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $65,544 $91,584 $144,551 $121,651 Total Revenues $65,544 $91,584 $144,551 $121,651 Expenditures Employee Compensation $294,834 $351,929 $384,695 $434,265 Employee Benefits $107,721 $139,725 $143,987 $198,878 Materials $37,326 $35,000 $35,382 $46,172 Contract Services $44,336 $27,822 $37,448 $38,000 Cost Allocation $34,341 $- $- $- Contingencies $- $- $1,821 $2,104 Total Expenditures $518,558 $554,476 $603,333 $719,419 Fund Balance $- $- $- $- General Fund Costs $453,015 $462,893 $458,782 $597,768 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 0 0 0 1.00 CITY CLERK 1.00 1.00 1.00 1.00 DEPUTY CITY CLERK 1.00 1.00 1.00 1.00 EXEC ASST TO THE CITY 0.50 0 0 0 COUNCIL SR OFFICE ASSISTANT 0.50 0.50 0.50 0.50 Total 3.00 2.50 2.50 3.50 Staffing is increasing due to the addition of an Administrative Assistant. FY 2022-23 Adopted Budget Administration 250 Duplicating and Mail Services Budget Unit 100-13-132 General Fund-City Clerk-Duplicating and Mail Services Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $49,075 Fund Balance $- General Fund Costs $49,075 %Funded by General Fund 100.0% Total Staffing FTE Program Overview The Duplicating and Mail budget provides paper,envelope, and postage supplies Citywide, and is responsible for the maintenance costs of the postage and folder-inserter machines. Service Objectives Supply paper,envelopes,and postage Citywide and maintain postage and folder-inserter machines. Adopted Budget On June 9, 2022, City Council approved a budget of $49,075 for the Duplicating and Mail Services program. This represents an increase of$1,281 (2.7%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year.The costs for paper,envelopes, and postage increased by CPI. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administration 251 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Benefits $216 $- $- $- Materials $30,750 $18,551 $36,410 $37,794 Contract Services $6,065 $5,271 $5,959 $6,500 Cost Allocation $- $32,813 $4,366 $3,674 Contingencies $- $- $1,059 $1,107 Total Expenditures $37,031 $56,635 $47,794 $49,075 Fund Balance $- $- $- $- General Fund Costs $37,032 $56,635 $47,794 $49,075 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Administration 252 Elections Budget Unit 100-13-133 General Fund-City Clerk-Elections Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $ 140,839 Fund Balance $- General Fund Costs $140,839 %Funded by General Fund 100.0% Total Staffing FTE Program Overview The City Clerk's office administers the legislative process including management of local elections and filings of Fair Political Practices Commission documents. Service Objectives . Administer elections and Fair Political Practices Commission filings in compliance with State law. • Conduct a local election in even-numbered years and ballot measure elections as necessary, in compliance with the California Elections Code. • Facilitate timely filing of required and voluntary documentation from candidates and election committees, including Nomination Papers, Candidate Statements of Qualification, Campaign Financial Disclosure Statements, and Statements of Economic Interest, as well as candidate biographies and photographs. • Make election-related information available to the public and news media in a timely manner. Adopted Budget On June 9, 2022, City Council approved a budget of $140,839 for the Elections program. This represents an increase of$140,692(95708.8%)from the FY 2021-22 Adopted Budget. The increase is due to increased costs for the Santa Clara County Election in November 2022, which occurs every two years. Materials costs are for election services and materials, including legal notices. Contract services costs are for consolidation with the County Registrar of Voters. The increase in Cost Allocation expenses is due to increased activities in FY 2020-21 as it was an election year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administration 253 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Miscellaneous Revenue $- $14,300 $- $- Total Revenues $- $14,300 $- $- Expenditures Materials $58 $600 $- $4,845 Contract Services $- $113,261 $- $130,000 Cost Allocation $- $1,595 $147 $2,623 Contingencies $- $- $- $3,371 Total Expenditures $58 $115,456 $147 $140,839 Fund Balance $- $- $- $- General Fund Costs $58 $101,156 $147 $140,839 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Administration 254 City Manager Contingency Budget Unit 100-14-123 General Fund-City Manager Discretionary-City Manager Contingency Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $75,000 Fund Balance $- General Fund Costs $75,000 %Funded by General Fund 100.0% Total Staffing FTE Program Overview The City Manager Contingency program was established to meet unexpected citywide expenses that may occur during the year. In FY 2013-14, a contingencies expenditure category was added to each program to serve as a contingency for any unexpected expenditures that might occur during the year. In FY 2020-21, program contingencies were reduced from 5% of budgeted materials and contract services to 2.5%. The City Manager Contingency is a second level of contingency established for unexpected expenditures that may occur over the program contingency. In FY 2020-21, City Manager contingencies were also reduced from 5% of budgeted General Fund materials and contract services to 2.5%. In FY 2021-22, City Manager contingencies were further reduced to $75,000, bringing total contingencies for the General Fund to approximately 2.5% of budgeted materials and contract services.This percentage is below best practices adopted by the Governmental Accounting Standards Board (GASB) of 5-15% contingency. Program contingency budgets may be used to cover unanticipated program expenses at the department's discretion, while the use of the City Manager Contingency will require City Manager approval. Staff reports any use of the City Manager Contingency to the City Council as part of the quarterly financial report. Adopted Budget On June 9, 2022, City Council approved a budget of$75,000 for the City Manager Contingency program. This budget is unchanged from the prior year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administration 255 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Materials $743 $- $- $- Contingencies $- $- $75,000 $75,000 Total Expenditures $743 $- $75,000 $75,000 Fund Balance $- $- $- $- General Fund Costs $743 $- $75,000 $75,000 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Administration 256 City Attorney Budget Unit 100-15-141 General Fund-City Attorney-City Attorney Budget at a Glance 2023 Adopted Budget Total Revenues $362,253 Total Expenditures $1,574,133 Fund Balance $- General Fund Costs $1,211,880 %Funded by General Fund 77.0% Total Staffing 3.0 FTE Program Overview The City Attorney is appointed by the City Council to manage the legal affairs of the City, including the operation of the City Attorney's Office.The City Attorney's Office provides all legal services that are needed to support the City Council, City Commissions and Committees, City Manager, department directors, and City staff. Service Objectives The mission of the City Attorney's Office is to protect and defend the City by all legal and ethical means and to provide the municipal corporation with high-quality legal service and advice. These legal services include the following: • Prosecute and defend the City in any legal action such as civil matters involving personal injury or property damage,code enforcement,or any administrative action arising out of City business. • Manage all liability claims filed against the City including investigation and disposition. . Attend City Council,Planning Commission,and other public meetings as requested. . Prepare and review proposed legislation including ordinances and resolutions. • Draft and/or review contracts,agreements,and other legal documents. • Conduct legal research and analysis,and prepare legal memoranda. . Provide legal support for special projects. Adopted Budget On June 9,2022,City Council approved a budget of$1,574,133 for the City Attorney program.This represents a decrease of$369,522(-19.0%)from the FY 2021-22 Adopted Budget. The decrease is due to the change from an outsourced City Attorney's Office to two in-house attorneys. The decrease in Cost Allocation revenues is because of a decrease in City Attorney expenses in FY 2021-22.The Cost Allocation Plan provides revenue for the City Attorney's Office from other programs that use City Attorney services. FY 2022-23 Adopted Budget Administration 257 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $409,873 $562,171 $542,945 $362,253 Miscellaneous Revenue $- $3,884 $- $- Total Revenues $409,873 $566,055 $542,945 $362,253 Expenditures Employee Compensation $ 105,757 $109,116 $113,073 $610,595 Employee Benefits $48,857 $53,716 $60,993 $264,139 Materials $10,966 $1,843 $4,589 $23,920 Contract Services $2,251,589 $1,327,256 $1,765,000 $658,420 Cost Allocation $68,244 $- $- $- Contingencies $- $ - $- $17,059 Total Expenditures $2,485,413 $1,491,931 $1,943,655 $1,574,133 Fund Balance $- $- $- $- General Fund Costs $2,075,540 $925,876 $1,400,710 $1,211,880 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget CITY ATTORNEY 0 0 0 1.00 LEGAL SERVICES MANAGER 1.00 1.00 1.00 1.00 SENIOR ASSISTANT CITY 0 0 0 1.00 ATTORNEY Total 1.00 1.00 1.00 3.00 In FY 2021-22,the City transitioned from an outsourced City Attorney's Office to an in-house City Attorney and Senior Assistant City Attorney. FY 2022-23 Adopted Budget Administration 258 Law Enforcement FY 2022-23 Adopted Budget Law Enforcement 259 This page intentionally left blank. FY 2022-23 Adopted Budget Law Enforcement 260 Department Overview Budget Units Budget Unit Program 2023 Adopted Budget Law Enforcement $16,814,519 100-20-200 Law Enforcement $16,765,096 100-20-201 Interoperability Project $49,423 Total $16,814,519 FY 2022-23 Adopted Budget Law Enforcement 261 Budget at a Glance 2023 Adopted Budget Total Revenues $1,367,721 Total Expenditures $16,814,519 Fund Balance $- General Fund Costs $ 15,446,798 %Funded by General Fund 91.9% Total Staffing FTE Organization Captain Rich Urena,Office of the Sheriff Law Enforcement (Contracted) FY 2022-23 Adopted Budget Law Enforcement 262 Performance Measures Goal:Maintain a safe environment to live,work,learn and play. Benefit:All members of the community are safe,informed,empowered and supported. FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target Response time for emergency calls Priority 1 3.51 3.4 4.31 5 minutes Priority 2 6.37 6.07 6.52 9 minutes Priority 3 11.96 11.8 11.28 20 minutes %programs maintaining minimum attendance Teen Academy 83% 92% 90% 80% Citizen Academy 65% N/A N/A 80% FY 2022-23 Adopted Budget Law Enforcement 263 Workload Indicators Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Total Priority 1 Calls 57 31 30 Total Priority 2 Calls 3,917 3,107 1,877 Total Priority 3 Calls 4,909 4,254 2,014 Total Teen/Community Academy Participants 76 23 18 Adopted Budget On June 9, 2022, City Council approved a budget of $16,814,519 for the Law Enforcement department. This represents an increase of$1,058,169(6.7%)from the FY 2021-22 Adopted Budget. The increase is due to the annual increase in costs for the Santa Clara County Sheriff's Office. FY 2022-23 Adopted Budget Law Enforcement 264 Adopted Expenditures by Division ■ Law Enforcement Department Expenditure History $16.8M $15.8M $14.8 M $14.2 M 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget FY 2022-23 Adopted Budget Law Enforcement 265 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $155,948 $156,727 $- $156,000 Charges for Services $753,798 $410,824 $- $61,000 Fines and Forfeitures $200,105 $102,396 $- $202,000 Miscellaneous Revenue $796,826 $837,329 $887,259 $948,721 Total Revenues $1,906,677 $1,507,276 $887,259 $1,367,721 Expenditures Materials $43,729 $158 $53,891 $53,891 Contract Services $14,049,296 $14,652,520 $15,534,026 $16,606,737 Cost Allocation $58,388 $123,731 $168,433 $153,891 Total Expenditures $14,151,413 $14,776,409 $15,756,350 $16,814,519 Fund Balance $- $- $- $- General Fund Costs $12,244,735 $13,269,134 $14,869,091 $15,446,798 Staffing There is no staffing associated with this department. FY 2022-23 Adopted Budget Law Enforcement 266 Law Enforcement Budget Unit 100-20-200 General Fund-Law Enforcement-Law Enforcement Budget at a Glance 2023 Adopted Budget Total Revenues $1,367,721 Total Expenditures $16,765,096 Fund Balance $- General Fund Costs $15,397,375 %Funded by General Fund 91.8% Total Staffing FTE Program Overview The Law Enforcement program provides law enforcement, emergency communications, School Resource Officers, and the Youth Probation Program. Law enforcement services are provided by the Santa Clara County Sheriff's Office, while communications services are provided by the Santa Clara County General Services Administration. The County's Youth Probation Program, also managed by the Sheriff's Office, is funded through a partnership with the Cupertino Union School District and the City of Cupertino. Other services include general law enforcement (patrol), traffic enforcement and investigation, detective services, and additional resources from specialized units. The State allocates the Citizens Option for Public Safety (COPS) grant to cities and counties for front-line law enforcement purposes. Funding is allocated proportionately based on population size with a minimum allocation of $100,000 per jurisdiction. This grant will be used to partially offset the cost of a second School Resource Officer that was added in the FY 2016-17 school year. Service Objectives . Protect life and property through innovative and progressive policing methods. • Respond to Priority 1 emergency situations within an average of fewer than five minutes. • Enforce the vehicle code with the goal of increasing traffic safety. • Divert first time/minor youth offenders from the juvenile justice system. • Provide daily on-site interaction with our youth. Adopted Budget On June 9, 2022, City Council approved a budget of $16,765,096 for the Law Enforcement program. This represents an increase of$1,058,124(6.7%)from the FY 2021-22 Adopted Budget. The increase is due to the annual increase in costs for the Santa Clara County Sheriff's Office. The City's contract with the Santa Clara County Sheriff's Office is effective from July 1, 2014, to July 1, 2024. Per the contract,the annual allowable increase is the lesser of: FY 2022-23 Adopted Budget Law Enforcement 267 • Change in total compensation plus 2%plus the Ca1PERS increase . CPI plus 2%plus the CaIPERS increase Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $155,948 $156,727 $- $156,000 Charges for Services $753,798 $410,824 $- $61,000 Fines and Forfeitures $200,105 $102,396 $- $202,000 Miscellaneous Revenue $796,826 $837,329 $887,259 $948,721 Total Revenues $1,906,677 $1,507,276 $887,259 $1,367,721 Expenditures Materials $43,729 $158 $53,891 $53,891 Contract Services $14,049,296 $14,652,520 $15,485,487 $16,558,198 Cost Allocation $57,618 $123,003 $ 167,594 $153,007 Total Expenditures $14,150,643 $14,775,681 $15,706,972 $16,765,096 Fund Balance $- $- $- $- General Fund Costs $12,243,965 $13,268,406 $14,819,713 $15,397,375 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Law Enforcement 268 Interoperability Project Budget Unit 100-20-201 General Fund-Law Enforcement-Interoperability Project Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $49,423 Fund Balance $- General Fund Costs $49,423 %Funded by General Fund 100.0% Total Staffing FTE Program Overview The Silicon Valley Regional Interoperability Authority (SVRIA) was formed under the Joint Exercise of Powers Act (JPA) to provide interoperable communications solutions to its members. The SVRIA represents the interests of all public safety agencies in Santa Clara County through its members. It services the Santa Clara Operational Area which includes the County of Santa Clara,its fifteen cities and towns,and all special districts. Service Objectives SVRIA exists to identify, coordinate, and implement communications interoperability solutions to its member agencies. The purpose of these projects is to seamlessly integrate voice and data communications between law enforcement, the fire and rescue service, emergency medical services, and emergency management for routine operations,critical incidents,and disaster response and recovery. Adopted Budget On June 9, 2022, City Council approved a budget of $49,423 for the Interoperability Project program. This represents an increase of$45(0.1%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Law Enforcement 269 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Contract Services $- $- $48,539 $48,539 Cost Allocation $770 $728 $839 $884 Total Expenditures $770 $728 $49,378 $49,423 Fund Balance $- $- $- $- General Fund Costs $770 $728 $49,378 $49,423 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Law Enforcement 270 Innovation and Technology FY 2022-23 Adopted Budget Innovation and Technology 271 This page intentionally left blank. FY 2022-23 Adopted Budget Innovation and Technology 272 Department Overview Budget Units Budget Unit Program 2023 Adopted Budget I&T Administration $341,934 610-30-300 Innovation&Technology Administration $341,934 Video $574,604 100-31-305 Video $574,604 100-31-307 Public Access Support $- Applications $2,815,258 100-32-308 Applications $2,815,258 Infrastructure $2,721,957 610-34-310 Infrastructure $2,721,957 GIS $1,546,226 610-35-986 GIS $ 1,546,226 Total $7,999,979 FY 2022-23 Adopted Budget Innovation and Technology 273 Budget at a Glance 2023 Adopted Budget Total Revenues $3,916,540 Total Expenditures $7,999,979 Fund Balance $412,601 General Fund Costs $4,496,040 %Funded by General Fund 56.2% Total Staffing 13.4 FTE Organization Bill Mitchell, Chief Technology Officer Chief Technology Officer Administrative Assistant Innovation and GIS Program Innovation and Multimedia Technology Manager Technology Manager Communications Applications Manager Infrastructure Specialist(1.5) Business Systems Business Systems Business Systems Multimedia Analyst(2) Analyst Analyst CommunicationsSpecialist P/T Applications Management IT Assistant (2) L Intern III Specialist P/T(2) Analyst GIS Technician P/T (2) FY 2022-23 Adopted Budget Innovation and Technology 274 Performance Measures Goal: Provide superior delivery of information and technology services to city employees and constituents while continually enhancing levels of engagement. Benefit: Integrated information services enable customer access to the tools and information they need, when and where they need it. FY 2022-23 Adopted Budget Innovation and Technology 275 FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target GIS: %of time spent Developing Application 10% 25% 25% 35% GIS: %of time Maintaining applications 90% 75% 70% 65% GIS:Met Requests within SLA(map, data, Web maps,Cityworks,schema,other) 97% 98% 100% 100% completed GIS:Increase Property Information 665/2,671 691/533 838/575 900/600 (Internal/External)site visits per month GIS:Cityworks utilization-#of assets Cupertino maintains vs#of assets 45/31 45/31 45/35 45/45 maintained in Cityworks.Also the%increase 70% 20% 50% 20% of work units completed(WOs,INSP,SRs) Infrastructure:Percentage based upon number of scheduled projects/Number of 80% 86% 71% 100% projects completed on time Infrastructure:Percentage based upon number of HelpDesk tickets/SLA 93% 94% 93% 90% measurements Infrastructure: %Customer satisfaction based 99.10% 98.70/° 100.00/° 85% upon Satisfaction Rate from helpdesk tickets Infrastructure: %of network uptime(not 99.90% 99.90% 100.00% 99% including planned maintenance) Applications:%of citywide-enterprise application project management performed 96% 95% 95% 95% on time and on budget Applications:Number of website site 1,624,377 800,164 823,496 5%annual visits/Number of site hits increase Applications:Number of support request for 45 65 55 20 the applications support per month FY 2022-23 Adopted Budget Innovation and Technology 276 Multimedia Division Performance Measure FY 2020 FY 2021 FY 2022 Ongoing July-June July-June July-Dec Target Percentage of total video productions 145% 522% 326% performed vs scheduled productions(city 32/22 47/9 29/8 100% meetings excluded)i Percentage of total engineering projects vs 233% 250% 300% 100% scheduled projects2 7/3 15/6 6/2 Total video views on YouTube and Granicus 215,607 246,313 83,417 5%annual platforms combined*s increase *Percentage skewed due to pandemic-more overall views due to daily press conference postings iThe Multimedia Division is responsible for producing videos for both city staff as well as the general Cupertino public. Typically, dozens of video productions are completed every year. Video productions range in scope from relatively simple 30-second public service announcements to major projects like CREST that require more than two months of ongoing field production, post-production editing, and a live awards program telecast. This specific Workload Indicator indicates that a large percentage of annual video projects are unscheduled or unanticipated. The main reason is that video productions are oftentimes evaluated and prioritized on the basis of their immediate organizational value, impact, and/or newsworthiness. Oftentimes, these unanticipated projects are identified and assigned with only a few days or weeks of advanced notice. As such, there is an ongoing need within the division for workflow and work schedule adaptability when evaluating video productions and completing them on time and on budget. 2Multimedia staff is responsible for designing,managing,and maintaining the many audiovisual and broadcast systems located within the organization.These include systems within the conference and multipurpose rooms, office and huddle spaces, as well as the complex broadcast systems within the video control room at Community Hall. Engineering projects differ from simple repairs, tasks, and modifications in that projects, as defined, require a phased-in approach with advanced planning, design, budgeting, resource acquisition, and implementation. Most engineering projects are scheduled well in advance; occasionally, however, Multimedia Division staff may need to implement unanticipated projects if staff or council priorities require such. The Workload Indicator here measures the number of projects completed vs.the number of scheduled projects. 3Multimedia staff historically tracks viewership data within our primary online video platforms--YouTube and Granicus. We continue to see an upward trend in viewership of our videos used to promote city meetings, city programs, and city services. Our target is to increase viewership by 5% annually. Both YouTube and Granicus provide advanced reporting modules that allow us to accurately track the number of views over a given date range. The numbers here indicate total views rather than total unique views. Other online platforms were considered as part of this dataset; however, because we do not consistently post videos to our other social media sites, such as Facebook, Twitter, Instagram, and Nextdoor, those statistics were not included as part of this specific performance measure. Similarly, we do have accurate viewership data for the City Channel, our government access television channel,so that platform was excluded as well. FY 2022-23 Adopted Budget Innovation and Technology 277 Workload Indicators Applications Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Enterprise Programs Support&Maintenances 2,500 hours 1,900 hours 2,000 hours Application Developmentz 1,500 hours 800 hours 750 hours Percentage of Project Management Performed on Time and Budget for Citywide 95% 95% 95% Applications iThe Application division is responsible for supporting enterprise business platforms like ERP, Land Management System, Recreation System, City Digital Records, City Website, and many programs like the Administrative Services digital transformation, citywide permitting, licensing, and enforcement solutions. All these programs and services require constant enhancements, support, and maintenance. The related tasks may range from providing staff user access to these platforms to issues that may require intensive programming and configurations to resolve. Troubleshooting existing or building new application configuration rules and parameters based on the current business process or new requirements. Creating custom application workflows in back office enterprise platforms like Accela and New World, configuring business processes, and integrating these enterprise software systems. Some issues require working and coordinating with software vendors to identify and resolve business workflows and other operational-related problems.Application integrations are a big solution in providing end-to-end business solutions. Coordinating the scheduling of corrective patches and upgrades between vendors and staff. 2Applications division creates custom software solutions like Bid Management solutions and Permit Parking software solutions.Application development for these kinds of software solutions goes through all stages of the Software Development Life Cycle(SDLC)of Requirement-gathering,Analysis,Designing,Coding,Testing,and Deployment of these custom software solutions. The Application team works with various city departments and other key stakeholders during phases of SDLC. Application staff gather business requirements,participate in a variety of system user and work groups to identify user needs and operational, programmatic, and or regulatory changes affecting application requirements and other related issues. Perform software application coding,building system integration and interfaces between applications.Perform end-user application tests for functionality and usability. Writing test scripts based on business processes. Perform system tests, integration test,s and performance(volume)tests. 3This measure involves the task of project research and communications, project charter creation, creating or reviewing statement of work,contractor research and selection process, activity and resource planning,creation of work breakdown structure, team building, time management, deliverable management, customer satisfaction,risk management,communication management,project closeout process and documentation. FY 2022-23 Adopted Budget Innovation and Technology 278 Infrastructure Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Percentage of helpdesk requests completed 48 92% 94% 93% hours or lessi %of network uptimez 99.9% 99.9% 99.8% Number of IT Projects Complete& 100% 100% 100% 3/3 7/7 3/3 iInfrastructure is responsible for the acquisition, maintenance and support of all computer hardware necessary for the City's leading edge network (server, storage, switch, security, appliance) and end user (PC, tablet,VoIP Devices,Smartphones)services.Exemplary customer service coupled with highly skilled staff is the trademark of this team. zEnsuring the City's vast network environment meets Business Continuity and Disaster Recovery requirements is a major responsibility of Infrastructure. Two geographically diverse data centers connected with a high speed Ethernet connection that traverses over 1000 miles provides this much needed service.24x7 monitoring is done via a plethora of tools and contract services managed by Infrastructure. 3PC based applications such as Microsoft Office, Team Collaboration, Adobe, Softphone, Antivirus, Teleconferencing and many more are procured, configured, maintained and supported. Citywide education of these products as well as end user security is the responsibility of Infrastructure which ensures a skilled City staff that know how to utilize software efficiently and securely. GIS Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec 460/tracking is still 540/tracking is still 450/tracking is still Hours Spent Web Application Development being refined.This being refined.This being refined.This is not an accurate is not an accurate is not an accurate account. account. account Map,Data,Analysis,Report,Application 422/tracking is still 882/tracking is still 691/tracking is still being refined.This being refined.This being refined.This Configuration Requests,Workflow is not an accurate is not an accurate is not an accurate Enhancements Completed Requestsz account. account. account. 100% 100% 20% Number of I&T workplan projects completeds 11/11 8/8 After budget 4/20 reduction iThe GIS Division builds web applications for staff to use as a tool in their daily workflows. The web application Property Info is a great example of this. Staff use it to review properties for development-select a property see all the associated layers of data, and access any related laserfiche documents. Property info is the FY 2022-23 Adopted Budget Innovation and Technology 279 main web mapping application staff use so we are constantly making improvements based on requests or new advancements in web development, or available widgets. We also create a number of web applications for the public https://www.cupertino.org/online-services/open-government-data/city-maps/web-maps-and- applications everything from the service finder that give residents a one stop shop of all City services to the CIP story map that give the public a visually appealing way to quickly interpret what capitol improvement projects are scheduled this year,where the project is located,what the project entails,and current status. 2GIS receives requests from staff and sometimes Commissioners, Sheriffs office, City Council members...These requests range from hard copy maps (ex. Update a zoning designation and print all new zoning maps) to interactive web maps (ex. PW had a consultant evaluate a section of Regnart Rd and Chad asked us to create a web map with the data point locations and associate photos), data request(ex.how many Trees were trimmed this year), Data changes (ex. can I see this layer symbolized by status and added to property info application), crystal report requests (ex. fleet wants a report that shows how many times each vehicle has a repair work order based on a dynamic timeframe), to application modifications (ex. the Tree Division is tasked with mediating a tree virus issue and they would like a new work order type so they can track the problem over time or Planning had us create a layer for private trees and then add it to the Property info application.) Evaluating staff use of an application and implementing ways to streamline that workflow.Reduce the number of steps to performing a task by configuring/coding an application in a way that eliminates redundancies. We are also asked to configure GIS for enterprise applications such as Accela and ActiveNet. 3Project research and communications,project charter creation,SOW creation, contractor research and selection process, activity & resource planning/work breakdown structure, team building and motivation, time management, deliverable management, ensuring customer satisfaction, risk management, communication management,project closeout process,documentation Multimedia Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Percentage of total video productions 145% 5 performed vs scheduled productions(city /9 29/8 32/22 47/9 9/8 meetings excluded) Percentage of total engineering projects vs 233% 250% 300% scheduled projects2 7/3 15/6 6/2 Total video views on YouTube and Granicus platforms combined*s 215,607 246,313 83,417 *Percentage skewed due to pandemic-more overall views due to daily press conference postings iThe Multimedia Division is responsible for producing videos for both city staff as well as the general Cupertino public. Typically, dozens of video productions are completed every year. Video productions range in scope from relatively simple 30-second public service announcements to major projects like CREST that require more than two months of on-going field production, post-production editing, and a live awards program telecast. This specific Workload Indicator clearly indicates that a large percentage of annual video projects are unscheduled or unanticipated. The main reason is that video productions are oftentimes evaluated and prioritized on the basis of their immediate organizational value, impact and/or newsworthiness. FY 2022-23 Adopted Budget Innovation and Technology 280 Oftentimes,these unanticipated projects are identified and assigned with only a few days or weeks of advanced notice. As such, there is an on-going need within the division for workflow and work schedule adaptability when it comes to evaluating video productions and completing them on time and on budget. 2Multimedia staff is responsible for designing,managing,and maintaining the many audiovisual and broadcast systems located within the organization.These include systems within the conference and multipurpose rooms, office and huddle spaces, as well as the complex broadcast systems within the video control room at Community Hall. Engineering projects differ from simple repairs, tasks, and modifications in that projects, as defined, require a phased-in approach with advanced planning, design, budgeting, resource acquisition, and implementation. Most engineering projects are scheduled well in advance; occasionally, however, video staff may need to implement unanticipated projects if staff or council priorities require as such. The Workload Indicator here measures the number of projects completed vs.the number of scheduled projects. 3Multimedia staff historically tracks viewership data within our primary online video platforms—YouTube and Granicus. We continue to see an upward trend in viewership of our videos which are used to promote city meetings, city programs, and city services. Our target is to increase viewership by 5% annually. Both YouTube and Granicus provide advanced reporting modules that allow us to accurately track the number of views over a given date range. The numbers here indicate total views rather than total unique views. Other online platforms were considered as part of this dataset; however, because we do not consistently post videos to our other social media sites such as Facebook,Twitter, Instagram, and Nextdoor, those statistics were not included as part of this specific performance measure. Similarly, we do have accurate viewership data for the City Channel,our government access television channel,so that platform was excluded as well. Adopted Budget On June 9,2022, City Council approved a budget of$7,999,979 for the Innovation and Technology department. This represents an increase of$1,733,709(27.7%)from the FY 2021-22 Adopted Budget. Increase in Compensation and Benefits are due to a transfer of 1.5 positions from the City Manager's Office. Increases in Materials, Contract Services and Special Projects are due to multi-year and new infrastructure and application enhancements. FY 2022-23 Adopted Budget Innovation and Technology 281 Adopted Expenditures by Division ■ Applications Infrastructure GIS Video I&T Administration Department Expenditure History $8.00M $7.43M $6.27M $5.16M 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget FY 2022-23 Adopted Budget Innovation and Technology 282 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $- $15,000 $- $- Charges for Services $2,739,704 $3,996,438 $4,572,658 $3,916,540 Miscellaneous Revenue $- $67,130 $- $- Total Revenues $2,739,704 $4,078,568 $4,572,658 $3,916,540 Expenditures Employee Compensation $2,193,929 $2,028,109 $2,072,164 $2,434,120 Employee Benefits $1,039,353 $729,278 $857,214 $991,799 Materials $1,611,936 $1,385,735 $1,716,016 $2,416,519 Contract Services $839,759 $516,877 $523,600 $835,469 Cost Allocation $1,437,210 $299,745 $303,672 $299,745 Special Projects $310,676 $198,377 $721,660 $941,028 Contingencies $- $- $71,944 $81,299 Total Expenditures $7,432,863 $5,158,121 $6,266,270 $7,999,979 Fund Balance $(1,072,796) $(394,967) $(745,302) $412,601 General Fund Costs $3,620,365 $684,587 $948,310 $4,496,040 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Innovation and Technology 283 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 0.95 0.95 0.95 0.95 APPLICATIONS MANAGER 1.00 1.00 1.00 1.00 ASSET MANAGEMENT TECHNCIAN 1.00 1.00 1.00 0 BUSINESS SYSTEMS ANALYST 3.00 3.00 3.00 3.00 CHIEF TECHNOLOGY OFFICER 1.00 0.98 0.98 0.98 GIS ANALYST 1.00 1.00 1.00 1.00 GIS MANAGER 1.00 1.00 1.00 1.00 INFRASTRUCTURE MANAGER 1.00 1.00 1.00 1.00 I.T.ASSISTANT 2.00 2.00 2.00 2.00 MANAGEMENT ANALYST 0 0 0 1.00 MULTIMEDIA COMMUNICATIONS 3.00 0 0 1.50 SPEC Total 14.95 11.93 11.93 13.43 FY 2022-23 Adopted Budget Innovation and Technology 284 Innovation & Technology Administration Budget Unit 610-30-300 Information Technology-I&T Administration-Innovation&Technology Administration Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $341,934 Fund Balance $(259,434) General Fund Costs $82,500 %Funded by General Fund 24.1% Total Staffing 0.5 FTE Program Overview The Innovation & Technology Department Administration Division is responsible for the strategic planning, governance, policy setting, and leadership in the use of digital services for the City. The services include a state of the art network which provides transport for best of class business applications, e.g., financial, land management, recreation, asset management, HR, e-commerce and work order management. Additionally, Administration ensures oversight of budget, tactical plans, succession planning, partnership development (internal/external)and staffing.Procurement and budget monitoring are also responsibilities of Administration. Service Objectives . Develop a roadmap to effectively leverage existing technology and adopt emerging technology to meet business needs. • Create and sustain a workplace atmosphere that promotes a balance between employee innovation, accountability and business needs. • Ensure two-way communication between and among the City organization and stakeholders. . Improve user experience including ease of use, availability, and accessibility within the context of compliance with industry standards. . Ensure transparent and easy access to City information and services via multiple technologies, e.g. social media,TV,web,and radio. Adopted Budget On June 9, 2022, City Council approved a budget of$341,934 for the Innovation&Technology Administration program.This represents an increase of$72,310(26.8%)from the FY 2021-22 Adopted Budget. The increase is due to an increase of FY 2022-23 City Work Program Special Projects mentioned in the table below. FY 2022-23 Adopted Budget Innovation and Technology 285 Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Source Funding Description Strategic Goal Aclima and Monitor and report on Lehigh Envirosuite Pilot Internal and Stevens Creek Quarries. Quality of Extension $66,000 $66,000 Service Fund Includes noise and pollution Life monitoring for these locations. City Work Program:In partnership with the County License Plate $60,000 $60,000 General Fund Sheriff,install ALPR devices for Quality of Readers the automated detection of Life license plates. City Work Program:Develop Hybrid Meeting policy and infrastructure to Public for City Council allow hybrid meetings for both and $15,000 $15,000 General Fund City Council,Commission Engagement and Commission meetings and future community Transparency Meetings workshops. City Work Program:Provide Public Cybersecurity education on cybersecurity to Public $7,500 $7,500 General Fund City residents,guests and Engagement and Education businesses. Transparency Total $148,500 $148,500 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Innovation and Technology 286 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $235,631 $- $- $- Total Revenues $235,631 $- $- $- Expenditures Employee Compensation $93,426 $120,302 $115,790 $115,790 Employee Benefits $42,452 $33,205 $49,027 $50,019 Materials $11,456 $5,178 $9,878 $11,451 Contract Services $1,440 $21,613 $15,300 $15,500 Cost Allocation $89,236 $- $- $- Special Projects $- $140,684 $77,500 $148,500 Contingencies $- $- $2,129 $674 Total Expenditures $238,010 $320,982 $269,624 $341,934 Fund Balance $(2,379) $(320,982) $(269,624) $(259,434) General Fund Costs $- $- $- $82,500 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ADMINISTRATIVE ASSISTANT 0.30 0.15 0.15 0.15 CHIEF TECHNOLOGY OFFICER 0.25 0.38 0.38 0.38 Total 0.55 0.53 0.53 0.53 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Innovation and Technology 287 Video Budget Unit 100-31-305 General Fund-Video-Video Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $574,604 Fund Balance $- General Fund Costs $574,604 %Funded by General Fund 100.0% Total Staffing 1.5 FTE Program Overview The multimedia budget is being split between the Innovation and Technology Department and the City Manager's Office. The primary goal of the Multimedia Division is to increase public awareness, interest, understanding, and participation in the issues, programs, and services presented by the City of Cupertino. The staff promotes City services and programs through its 24/7 government access channel, radio station, digital signage network, City website, and numerous online video platforms. In addition, the video staff provides multimedia production services and technical support for all City departments.Multimedia staff also oversees the design,maintenance, and engineering of the City's broadcast and audiovisual systems. Service Objectives Multimedia staff works together to manage and maintain the following city services: • City Channel, the government access television channel which provides 24/7 information to Cupertino residents, includes full coverage of city meetings, community events, town hall forums, press conferences, election coverage, and local speaker series, as well as educational programming and state government affairs programming • Webcasting and video on demand services for live streaming city meetings, events and other programs of interest • Radio Cupertino for emergency and community information for public service announcements, traffic alerts,and weather forecasts . Digital signage to promote city programs and events via electronic displays in city facilities . Multimedia production services and maintenance of city video equipment Adopted Budget On June 9,2022,City Council approved a budget of$574,604 for the Video program. FY 2022-23 Adopted Budget Innovation and Technology 288 1.5 positions and a portion of materials and contracts were transferred from the Multimedia program in Administration to the Video program in Innovation Technology. In FY 2021-22 the entirety of the budget was in the City Manager's Office and totaled$916,374 (page 252 of the FY 2021-22 Adopted Budget). The current total budget when combining both this budget and the budget in City Manager totals $1,013,396, an increase of $97,022. The increase is due to increases in salary for increased part-time costs and the addition of overtime costs that were missed in last year's adopted budget. In addition, special project costs have increased significantly as well.One-time projects will vary from year to year. Special Projects The following table shows the special projects for the fiscal year. Special project Appropriation Revenue Funding Source Description Enhanced Videoconferencing $35,000 $35,000 General Fund Videoconferencing System for enhancements Cupertino Room Cupertino Room Audiovisual grade Lectern Upgrade $7,500 $7,500 General Fund lectern replacement Social Room Audio Upgrade to the Upgrade $16,500 $16,500 General Fund audio system Sports Center Audio $9000 $9000 General Fund Upgrade to the System Upgrade , , audio system Total $68,000 $68,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Innovation and Technology 289 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $8,003 $7,204 $- $- Total Revenues $8,003 $7,204 $- $- Expenditures Employee Compensation $505,578 $ - $- $246,871 Employee Benefits $210,977 $- $- $99,404 Materials $43,830 $76 $- $61,417 Contract Services $77,271 $- $- $95,002 Cost Allocation $280,610 $- $- $- Special Projects $340,362 $- $- $68,000 Contingencies $- $- $- $3,910 Total Expenditures $1,458,628 $76 $- $574,604 Fund Balance $- $- $- $- General Fund Costs $1,450,626 $(7,128) $- $574,604 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 0.10 0 0 0 CHIEF TECHNOLOGY OFFICER 0.15 0 0 0 MULTIMEDIA COMMUNICATIONS 3.00 0 0 1.50 SPEC Total 3.25 0 0 1.50 1.5 positions were transferred from the Multimedia program in Administration to the Video program in Innovation Technology. FY 2022-23 Adopted Budget Innovation and Technology 290 Public Access Support Budget Unit 100-31-307 General Fund-Video-Public Access Support Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $- Fund Balance $- General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview In FY 2020-21, this program was transferred to the City Manager's Office. A complete discussion of this program can be found under Budget Unit 100-12-307. This program will remain in order to maintain historical data however,once all prior year data as listed in the table below is$0,this program will be removed. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Contract Services $73,850 - Cost Allocation $ 1,828 Total Expenditures $75,678 - Fund Balance $- General Fund Costs $75,678 FY 2022-23 Adopted Budget Innovation and Technology 291 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Innovation and Technology 292 Applications Budget Unit 100-32-308 General Fund-Applications-Applications Budget at a Glance 2023 Adopted Budget Total Revenues $1,431,322 Total Expenditures $2,815,258 Fund Balance $- General Fund Costs $1,383,936 %Funded by General Fund 49.2% Total Staffing 3.5 FTE Program Overview The Applications Division manages business requirements gathering, design, development, procurement, project management, implementation and ongoing maintenance and support of all enterprise-wide business systems and programs. These systems include Financial Enterprise Resource Planning (ERP), Land-use Management System, Recreation Management System and their related customer facing portals. Additionally Applications division is responsible for electronic content management (records retention) system and city's procurement management system. The Applications Division manages the City's website, Intranet, and mobile apps development. The division staff supports e-service programs and services like permitting, licensing and enforcement. Applications division is responsible for creating custom SaaS software platforms like bid management solution and residential parking permits solution. They are also responsible for application integrations so critical business data can flow between enterprise platforms. Applications division staff also generate critical business analytics and reports to aid city staff in getting insight through data visualization and helps department supervisors and managers in decision making and measurements of key performance index and goals. Service Objectives • Deliver business solutions that meet customer requirements and integrate within the City's application framework. . Assist departments in developing streamlined and effective business processes that are easy to understand and translate into existing and new enterprise applications. • Work closely with City staff and members of the community to ensure that the City's enterprise application platforms are relevant and provide value to all the stakeholders. • Collaborate with various City departments to determine that the City's enterprise software solutions meet the functional requirements and long-term application implementation strategy of the organization. • Create and maintain effective online and mobile user access to municipal information and services. . Enable and facilitate the use of communication and technical resources by nontechnical staff and customers. FY 2022-23 Adopted Budget Innovation and Technology 293 . Generate business data dashboards to city staff and external stakeholders. Adopted Budget On June 9, 2022, City Council approved a budget of $2,815,258 for the Applications program. This represents an increase of$445,971 (18.8%)from the FY 2021-22 Adopted Budget. Increases in Compensation and Benefits are mainly due to increased part-time staff. Increases in Materials, Contract Services,and Special Projects are due to new applications and enhancements to current applications. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description ERP Phase I $106,928 $160,928 General Fund Needs Analysis Accela Citizen Access $25,000 $25,000 General Fund Update to User Interface Guide and Wrapper Code Enforcement Consolidation of Code Enforcement Consolidated $40,000 $40,000 General Fund system operations Application Climate Action Plan Implementation $20,000 $20,000 General Fund Climate Action plan platform Software Accela Roadmap $25,000 $25,000 General Fund Develop Systematic Roadmap ActiveNet Roadmap $25,000 $25,000 General Fund Develop Systematic Roadmap ZenDesk for Parks& $40000 $40000 General Fund Implement Customer Service Recreation , , Solution Semi Annual ADA Consultant $35,000 $35,000 General Fund City website ADA Compliance Crisis Management $15000 $15000 General Fund Customization of County Software , , dashboard Total $331,928 $331,928 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Innovation and Technology 294 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $- $15,000 $- $- Charges for Services $- $1,307,803 $ 1,613,055 $ 1,431,322 Miscellaneous Revenue $- $67,130 $- $- Total Revenues $- $1,389,933 $1,613,055 $1,431,322 Expenditures Employee Compensation $471,362 $635,662 $671,629 $722,798 Employee Benefits $153,882 $206,339 $242,843 $254,426 Materials $981,919 $749,988 $928,372 $ 1,254,233 Contract Services $236,801 $186,966 $ 195,400 $215,139 Cost Allocation $178,096 $- $- $- Special Projects $- $57,693 $295,560 $331,928 Contingencies $- $- $35,483 $36,734 Total Expenditures $2,022,060 $1,836,648 $2,369,287 $2,815,258 Fund Balance $- $- $- $- General Fund Costs $2,022,061 $446,715 $756,232 $1,383,936 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ADMINISTRATIVE ASSISTANT 0.15 0.30 0.30 0.30 APPLICATIONS MANAGER 1.00 1.00 1.00 1.00 BUSINESS SYSTEMS ANALYST 2.00 2.00 2.00 2.00 CHIEF TECHNOLOGY OFFICER 0.30 0.20 0.20 0.20 Total 3.45 3.50 3.50 3.50 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Innovation and Technology 295 Infrastructure Budget Unit 610-34-310 Information Technology-Infrastructure-Infrastructure Budget at a Glance 2023 Adopted Budget Total Revenues $1,556,269 Total Expenditures $2,721,957 Fund Balance $1,289,312 General Fund Costs $2,455,000 %Funded by General Fund 90.2% Total Staffing 4.5 FTE Program Overview The IT Infrastructure Division is responsible for technology-related expenses for the citywide management of information technology services. The Infrastructure Manager and staff are responsible for computer helpdesk, network availability, and performance, security and compliance, incident response, disaster recovery and business continuity, project management of implementations and upgrades,purchasing and inventory control, technical training, and maintenance of systems. Infrastructure is also tasked with ensuring that the City continues to follow best practices in technology adoption and security practices. Service Objectives . Provide and continuously improve helpdesk support as this function is often the face of IT that staff interacts with on a daily basis. • Maintain standards and procedures for the replacement, support, and maintenance of all City-owned computing devices,printers,networks,peripherals and systems defined by City policy. • Continue innovation and outreach to ensure the City follows best IT practices relating to equipment, policy,and security practices. Adopted Budget On June 9, 2022, City Council approved a budget of$2,721,957 for the Infrastructure program. This represents an increase of$519,504(23.6%)from the FY 2021-22 Adopted Budget. Increases in Materials,Contract Services, and Special Projects are due to multi-year and new infrastructure and security enhancements. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Innovation and Technology 296 Special Project Appropriation Revenue Funding Source Description City Facilities Camera Capture $60,000 $60,000 Internal Service Camera Capture System Expansion Fund City Hall Enterprise Server and $150,000 $150,000 Internal Service Server Environment Storage Tech Refresh Fund replacement Supplemental Wi-Fi Expansion $20500 $20 Internal Service Internet service to three in Public Areas , ,500 Fund parks Office 365 E5 Licenses $7,000 $7,000 Internal Service Adding 40 developer Fund Licenses Proactive Managed Risk and $23,000 $23,000 Internal Service Proactive cyber threat Security Monitoring Fund monitoring Public Bicycle Smart Rack Docks Technology $2,000 $2,000 Internal Service Public Bicycle Smart Rack Fund Docks improvements Enhancement/Review Sign Shop Printer Warranty $3,000 $3,000 Internal Service Sign Shop Printer Fund maintenance CAD&RMS WAN Link $7,200 $7,200 Internal Service secured link for computer Fund aided dispatch Digital Signage $25,000 $25,000 Internal Service Pilot digital signage solution Fund for 1 park Total $297,700 $297,700 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Innovation and Technology 297 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $1,629,376 $1,767,098 $1,882,195 $1,556,269 Total Revenues $1,629,376 $1,767,098 $1,882,195 $1,556,269 Expenditures Employee Compensation $605,073 $660,555 $657,676 $683,644 Employee Benefits $353,426 $270,305 $307,679 $314,130 Materials $445,355 $470,005 $559,969 $793,929 Contract Services $303,138 $212,752 $192,900 $305,328 Cost Allocation $701,888 $299,745 $303,672 $299,745 Special Projects $(29,686) $- $159,400 $297,700 Contingencies $- $- $21,157 $27,481 Total Expenditures $2,379,194 $1,913,362 $2,202,453 $2,721,957 Fund Balance $(677,818) $98,735 $(128,180) $1,289,312 General Fund Costs $72,000 $245,000 $192,078 $2,455,000 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ADMINISTRATIVE ASSISTANT 0.30 0.30 0.30 0.30 BUSINESS SYSTEMS ANALYST 1.00 1.00 1.00 1.00 CHIEF TECHNOLOGY OFFICER 0.20 0.20 0.20 0.20 INFRASTRUCTURE MANAGER 1.00 1.00 1.00 1.00 I.T.ASSISTANT 2.00 2.00 2.00 2.00 Total 4.50 4.50 4.50 4.50 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Innovation and Technology 298 GIS Budget Unit 610-35-986 Information Technology-GIS-GIS Budget at a Glance 2023 Adopted Budget Total Revenues $928,949 Total Expenditures $1,546,226 Fund Balance $(617,277) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 3.4 FTE Program Overview The Geographic Information Systems (GIS) program captures, manages, analyzes, and displays all forms of geographically referenced information for the City of Cupertino. Through maps, reports, dashboards, and charts we provide ways to view, understand, question, interpret, and visualize, our City in ways that reveal relationships, patterns, and trends. The GIS Program works to help our staff, citizens, business, and development communities answer questions and solve problems by looking at our data in a way that is quickly understood and easily shared—on a map! Service Objectives • Cupertino GIS works to provide and support state-of-the-art GIS mapping services and applications in the rapidly evolving and expanding field of geospatial technology. • Create,collect,maintain,and distribute high quality,up-to-date,and complete geospatial data. • Ensure that the City's GIS systems and data are available for day-to-day City and regional purposes. • Share the City's GIS data and services as widely as possible. • Raise the awareness of GIS. • Integrate spatial technology into Cupertino's business processes and applications. . Support emergency planning,response,and recovery. Adopted Budget On June 9,2022, City Council approved a budget of$1,546,226 for the GIS program. This represents an increase of$121,320(8.5%)from the FY 2021-22 Adopted Budget. Increases in Materials and Contract Services are due to new applications and enhancements to current applications,this is offset by a decrease in special projects. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Innovation and Technology 299 Special Project Appropriation Revenue Funding Source Description Drone Instructor $1,600 $1,600 Internal Service Required training for Drone Fund pilots Additional Telematics Internal Service Devices $5,300 $5,300 Fund Additional Licenses LaserFiche Scanning $30,000 $30,000 Internal Service City Document scanning Fund Additional Amazon ec2 Internal Service instance(t3aXlarge) $5,000 $5,000 Fund Cloud subscription fee Business Process Internal Service Paper form conversion to Automation $42,000 $42,000 Fund digital Google Query $5,000 $5,000 Internal Service Pilot to retrieve traffic speed Fund and incident data Geotab Keyless Solution $6,000 $6,000 Internal Service Keyless storage for fleet keys Fund Total $94,900 $94,900 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $866,694 $914,333 $ 1,077,408 $928,949 Total Revenues $866,694 $914,333 $1,077,408 $928,949 Expenditures Employee Compensation $518,490 $611,590 $627,069 $665,017 Employee Benefits $278,616 $219,429 $257,665 $273,820 Materials $129,376 $160,488 $217,797 $295,489 Contract Services $147,259 $95,546 $120,000 $204,500 Cost Allocation $185,552 $- $- $- Special Projects $- $- $189,200 $94,900 Contingencies $- $- $13,175 $ 12,500 Total Expenditures $1,259,293 $1,087,053 $1,424,906 $1,546,226 Fund Balance $(392,599) $ (172,720) $(347,498) $ (617,277) General Fund Costs $- $- $- $- FY 2022-23 Adopted Budget Innovation and Technology 300 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 0.10 0.20 0.20 0.20 ASSET MANAGEMENT 1.00 1.00 1.00 0 TECHNCIAN CHIEF TECHNOLOGY OFFICER 0.10 0.20 0.20 0.20 GIS ANALYST 1.00 1.00 1.00 1.00 GIS MANAGER 1.00 1.00 1.00 1.00 MANAGEMENT ANALYST 0 0 0 1.00 Total 3.20 3.40 3.40 3.40 In FY 2021-22,an Asset Management Technician was reclassified to a Management Analyst. FY 2022-23 Adopted Budget Innovation and Technology 301 This page intentionally left blank. FY 2022-23 Adopted Budget Innovation and Technology 302 Administrative Services FY 2022-23 Adopted Budget Administrative Services 303 This page intentionally left blank. FY 2022-23 Adopted Budget Administrative Services 304 Department Overview Budget Units Budget Unit Program 2023 Adopted Budget Administrative Services $901,880 100-40-400 Administrative Services Administration $901,880 Finance $2,929,237 100-41-405 Accounting $1,745,952 100-41-406 Business Licenses $473,445 100-41-425 Purchasing $369,240 100-41-426 Budget $340,600 Human Resources $6,205,347 100-44-412 Human Resources $1,520,541 642-44-414 Retiree Benefits $1,388,276 100-44-417 Insurance Administration $2,034,411 620-44-418 Workers Compensation Insurance $516,946 641-44-419 Short Term and Long Term Disability $98,523 641-44-420 Compensated Absences $646,650 Total $10,036,464 FY 2022-23 Adopted Budget Administrative Services 305 Budget at a Glance 2023 Adopted Budget Total Revenues $4,403,661 Total Expenditures $10,036,464 Fund Balance $(1,332,250) General Fund Costs $4,300,553 %Funded by General Fund 42.8% Total Staffing 18.9 FTE Organization Kristina Alfaro,Director of Administrative Services Director of Administrative Services/Treasurer Administrative Assistant Finance Senior Manager/Deputy Human Resources Management Budget Manager Purchasing Treasurer Manager Analyst Manager Senior Senior Human Resources Accountant Management Analyst II(2) Analyst Accountant II(2) Acc�Ppt I HR Technician(2) Account Clerk II Accounting (3) Technician FY 2022-23 Adopted Budget Administrative Services 306 Performance Measures Finance Division Goal: Financial Stability - Provide a sustainable level of core services that are funded from ongoing and stable revenue sources. Benefit:Citizens can enjoy high quality of services that meet community priorities. FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target General Fund fund balance as a%of 69%, 103% 78% 35% budgeted appropriations Credit Rating AA+ AA+ AA+ AA+ Actual revenue vs.budget(%below -7% -19% -35% 10% budget) Actual expenditures(%below budget) 17% 15% 23% 5% Funding allocated to high priority services(Public Works,Community 43% 53% 53% 63% Development,Law Enforcement) Human Resources Division Goal:To create a thriving organization with meaningful careers in public service. Benefit: The agency supports a professional and engaged workforce offering diverse and quality community services. FY 2022-23 Adopted Budget Administrative Services 307 FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target #of Worker's Compensation Cases 15 10 13 0 Total recordable Injury Rate YTD 5.7% 5.0% 6.4% 0% %absenteeism(%of total annual 3% 2% 2% 2% work hours) %turnover rate* 3% 5% 3% 1% %Employee satisfaction N/A N/A N/A 100% %Employee participation in wellness 47% °43/0 47/0 75/o activities Average#of applications received per 41 70 48 50 recruitment Recruitment timeline-#days from 85 78 70 60 hiring request to offer letter #of employees using the Telework N/A N/A N/A 17 program %Utilization of full-service employee 100% N/A** N/A** 100% portal *Data for resignations only **Data not applicable FY 2022-23 Adopted Budget Administrative Services 308 Workload Indicators Finance Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec #of vendor checks processed 5,668 4,457 2,471 #of payroll checks processed 9,953 7,816 4,014 #of business license applications 901 1,061 410 #of business license renewals 2,842 2,467 677 #of journal entries posted 4,637 3,915 2,108 #of purchase orders approved 495 534 326 #of receipts processed 14,204 10,367 6,016 Human Resources Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec #of regular recruitments 20 24 15 #of regular new hires 20 22 23 #of temporary new hires N/A 18 12 #of personnel payroll changes 1,104 834 441 #of full-time employee exits processed 14 30 9 #of mandated training classes offered* N/A 18 8 #of employees participating in the wellness 91 90 93 program *some trainings mandated every other year,however not on the same annual schedule Adopted Budget On June 9, 2022, City Council approved a budget of $10,036,464 for the Administrative Services department. This represents an increase of$2,265,349(29.2%)from the FY 2021-22 Adopted Budget. The increase in Employee Compensation and Benefits is due to the addition of the Purchasing Manager and Budget Manager positions. The increase in Contract Services is primarily due to general liability and property insurance premiums, which are increasing by over $760,000 compared to last year's budget. One-time special projects include a fee study and federal grants program. FY 2022-23 Adopted Budget Administrative Services 309 Adopted Expenditures by Division ■ Human Resources Finance ■ Administrative Services Department Expenditure History $10.OM $7.77M $7.36M $6.55M 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget FY 2022-23 Adopted Budget Administrative Services 310 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $3,898,699 $4,156,784 $4,837,735 $4,403,661 Miscellaneous Revenue $35,060 $8,775 $- $_ Total Revenues $3,933,759 $4,165,559 $4,837,735 $4,403,661 Expenditures Employee Compensation $2,028,226 $2,229,343 $2,259,659 $2,688,101 Employee Benefits $2,096,913 $2,191,476 $2,321,303 $2,660,698 Materials $184,873 $83,977 $166,641 $191,213 Contract Services $1,972,395 $2,513,838 $2,612,344 $3,719,161 Cost Allocation $266,331 $341,705 $341,693 $349,530 Special Projects $- $- $- $330,000 Contingencies $- $- $69,475 $97,761 Total Expenditures $6,548,738 $7,360,339 $7,771,115 $10,036,464 Fund Balance $1,807,757 $(1,678,654) $(941,848) $(1,332,250) General Fund Costs $4,422,735 $1,516,125 $1,991,532 $4,300,553 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administrative Services 311 Position Title 2020 2021 2022 Adopted 2023 Adopted Budget Actual Actual Budget ACCOUNTANT II 2.00 1.00 2.00 2.00 ACCOUNT CLERK II 2.00 3.00 3.00 3.00 ACCOUNTING TECHNICIAN 1.00 1.00 1.00 1.00 ADMINISTRATIVE ASSISTANT 1.00 0.95 0.95 0.95 BUDGET MANAGER 0 0 0 1.00 DIRECTOR OF ADMIN SERVICES 1.00 1.00 1.00 1.00 FINANCE MANAGER 1.00 0.95 0.95 0.95 HUMAN RESOURCES ANALYST II 1.00 2.00 2.00 2.00 HUMAN RESOURCES MANAGER 1.00 1.00 1.00 1.00 HUMAN RESOURCES TECH 1.00 2.00 2.00 2.00 PURCHASING MANAGER 0 0 0 1.00 SENIOR ACCOUNTANT 1.00 1.00 1.00 1.00 SENIOR MANAGEMENT 2.00 2.00 2.00 2.00 ANALYST Total 14.00 15.90 16.90 18.90 FY 2022-23 Adopted Budget Administrative Services 312 Administrative Services Administration Budget Unit 100-40-400 General Fund-Administrative Services-Administrative Services Administration Budget at a Glance 2023 Adopted Budget Total Revenues $156,003 Total Expenditures $901,880 Fund Balance $- General Fund Costs $745,877 %Funded by General Fund 82.7% Total Staffing 3.8 FTE Program Overview The Administrative Services Administration program oversees and coordinates Human Resources/Risk Management, Finance, Purchasing, Budget, and Treasury. Staff support is provided to the Fiscal Strategic and Audit Committees,as well as the Santa Clara County Leadership Academy. Service Objectives • Manage the City's investment portfolio to obtain safety of funds, liquidity, and a reasonable rate of return. • Perform special projects for the City Manager. • Manage the City's Contract for Law Enforcement Services with the Santa Clara County Sheriff's Office. • Provide staff support to the Santa Clara County Leadership Academy Adopted Budget On June 9, 2022, City Council approved a budget of $901,880 for the Administrative Services Administration program.This represents a decrease of$24,423(-2.6%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year.The decrease in Materials and Contract Services is due to the transfer of printing costs for the budget document to the Budget program. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Administrative Services 313 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $69,263 $185,799 $183,169 $156,003 Miscellaneous Revenue $- $(2,800) $- $- Total Revenues $69,263 $182,999 $183,169 $156,003 Expenditures Employee Compensation $541,196 $593,523 $594,796 $588,164 Employee Benefits $239,759 $249,510 $280,580 $282,451 Materials $76,682 $17,077 $46,067 $29,841 Contract Services $- $8,323 $3,618 $661 Cost Allocation $35,067 $- $- $- Contingencies $- $- $1,242 $763 Total Expenditures $892,704 $868,433 $926,303 $901,880 Fund Balance $- $- $- $- General Fund Costs $823,441 $685,434 $743,134 $745,877 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Budget Actual Actual Budget ADMINISTRATIVE ASSISTANT 1.00 0.95 0.95 0.95 DIRECTOR OF ADMIN SERVICES 0.80 0.80 0.80 0.80 SENIOR MANAGEMENT 1.00 2.00 2.00 2.00 ANALYST Total 2.80 3.75 3.75 3.75 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Administrative Services 314 Accounting Budget Unit 100-41-405 General Fund-Finance-Accounting Budget at a Glance 2023 Adopted Budget Total Revenues $2,105,135 Total Expenditures $1,745,952 Fund Balance $- General Fund Costs $(359,183) %Funded by General Fund -20.6% Total Staffing 6.9 FTE Program Overview The Finance Division oversees all financial accounting and treasury functions for the City. Accurate and timely maintenance of all City financial records, including financial reporting, revenue collection, banking and investments, disbursement of all funds, and payroll processing are handled by the Finance Division. All required Federal, State and other regulatory reporting with respect to the City's financial condition are prepared in the Accounting program of Finance. In addition, Finance monitors the City's two investment policies, manages budget-to-actual activities for both operational and capital budgets, performs all financial analyses, conducts research, and prepares reports on all fiscal matters of the City for internal and external customers. Service Objectives • Process all financial transactions of the City of Cupertino, including general ledger accounting, cash management and investment of City funds,payroll, accounts payable,revenue collections,banking, and miscellaneous billing. • Record all City financial transactions prudently and within all regulatory requirements. • Produce timely and accurate financial reports. . Maintain a high level of professionalism when fulfilling the City's financial policies, processing its financial transactions,and representing the City to its residents. • Respond promptly to inquiries from the public and other City departments. Adopted Budget On June 9, 2022, City Council approved a budget of$1,745,952 for the Accounting program. This represents an increase of$142,952(8.9%)from the FY 2021-22 Adopted Budget. The increase in Employee Compensation is due to part-time staff that was not budgeted in FY 2021-22. The increase in Special Projects is due to a fee study of the City's costs of service and fees for service. The fee study will assess the City's fees to ensure appropriate cost recovery and assess the costs of service to facilitate the allocation of overhead costs through the Cost Allocation Plan.The last fee study was performed in FY 2015-16. FY 2022-23 Adopted Budget Administrative Services 315 Special Projects The following table shows the special projects for the fiscal year. Project Appropriation Revenue Funding Source Description Fee Study $75,000 $75,000 General Fund Fee study of City services and costs. Total $75,000 $75,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $1,673,028 $2,114,792 $2,175,347 $2,105,135 Miscellaneous Revenue $35,060 $11,553 $- $- Total Revenues $1,708,088 $2,126,345 $2,175,347 $2,105,135 Expenditures Employee Compensation $730,307 $858,215 $831,742 $875,847 Employee Benefits $320,800 $370,373 $401,927 $428,205 Materials $16,564 $8,487 $23,131 $24,009 Contract Services $188,162 $248,303 $337,192 $333,942 Cost Allocation $58,882 $- $- $- Special Projects $- $- $- $75,000 Contingencies $- $- $9,008 $8,949 Total Expenditures $1,314,715 $1,485,378 $1,603,000 $1,745,952 Fund Balance $- $- $- $- General Fund Costs $(393,373) $ (640,967) $(572,347) $(359,183) Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administrative Services 316 Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ACCOUNTANT II 1.90 1.00 1.90 1.90 ACCOUNT CLERK II 1.50 2.00 2.00 2.00 ACCOUNTING TECHNICIAN 1.00 1.00 1.00 1.00 FINANCE MANAGER 1.00 0.95 0.95 0.95 SENIOR ACCOUNTANT 1.00 1.00 1.00 1.00 Total 6.40 5.95 6.85 6.85 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Administrative Services 317 Business Licenses Budget Unit 100-41-406 General Fund-Finance-Business Licenses Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $473,445 Fund Balance $- General Fund Costs $473,445 %Funded by General Fund 100.0% Total Staffing 1.1 FTE Program Overview The Business Licenses program monitors business licensing activity for compliance with the City Municipal Code and applicable state law. Service Objectives . Issue business licenses to entities conducting business within the city limits of Cupertino. • Collect appropriate business license fees. . Monitor compliance with the Business License Tax Code and provide useful information related to business activity to City departments. • Identify non-compliant business activity. Adopted Budget On June 9, 2022, City Council approved a budget of $473,445 for the Business Licenses program. This represents an increase of$69,068(17.1%)from the FY 2021-22 Adopted Budget. The increase is due to bank charges for business license transactions in Accela. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administrative Services 318 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $86,146 $97,527 $101,611 $101,611 Employee Benefits $46,954 $52,727 $62,881 $64,279 Materials $179 $83 $- $- Contract Services $9,003 $61,787 $- $65,000 Cost Allocation $95,029 $252,034 $239,885 $240,930 Contingencies $- $- $- $1,625 Total Expenditures $237,311 $464,158 $404,377 $473,445 Fund Balance $- $- $- $- General Fund Costs $237,311 $464,157 $404,377 $473,445 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ACCOUNTANT II 0.10 0 0.10 0.10 ACCOUNT CLERK II 0.50 1.00 1.00 1.00 Total 0.60 1.00 1.10 1.10 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Administrative Services 319 Purchasing Budget Unit 100-41-425 General Fund-Finance-Purchasing Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $369,240 Fund Balance $- General Fund Costs $369,240 %Funded by General Fund 100.0% Total Staffing 1.0 FTE Program Overview The Purchasing program provides centralized oversight and management over the City's procurement of goods and services. Centralized procurement assures fair and open acquisition processes that seek to obtain maximum value for each dollar spent.Major activities include soliciting formal competitive bids and proposals, obtaining quotes, and participating in cooperative procurements with other governmental agencies. In addition,the Purchasing program assists City employees in complying with all legal and ethical requirements. Service Objectives • Oversee and manage the procurement of goods and services by the City while ensuring compliance with applicable federal, state,and local laws,ordinances,rules,and regulations. • Develop and implement strategic procurement planning, procurement policies and procedures, quality control,procurement training,electronic procurement systems,and procurement card administration. • Provide professional support and contractual advice to all stakeholders involving contractual services, consultants,equipment,supplies,construction,capital improvements,and other applicable activities. • Keep informed of current developments in the field of purchasing, prices, market conditions, and new products. Adopted Budget On June 9,2022,City Council approved a budget of$369,240 for the Purchasing program. Procurement is a new program in FY 2022-23. In FY 2021-22, the City's internal auditor, Moss Adams, conducted a Procurement Operational Review to identify opportunities for improvement in service delivery, internal controls, organization, operations, and process efficiency. Moss Adams recommended the City take steps toward greater centralization of procurement activities and elevate procurement to a strategic function. As a result, the City created a Purchasing Program and added a Purchasing Manager.The Purchasing Manager will: . Manage the implementation plan for the Procurement Operational Review. FY 2022-23 Adopted Budget Administrative Services 320 . Oversee and manage procurement operations to ensure compliance with laws, ordinances, rules, and regulations. . Design and implement procurement policies and procedures and procurement training for City staff. In addition, Moss Adams recommended that the City create a citywide grant strategy to fully leverage grant funding opportunities. A special project for a federal grants consultant is a pilot program to help the City to leverage grant funding opportunities. Special Projects The following table shows the special projects for the fiscal year. Project Appropriation Revenue Funding Source Description Consultant to help Federal Grants the City leverage Consultant $100,000 $100,000 General Fund Federal grant funding opportunities. Total $100,000 $100,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues $- $- $- $- Expenditures Employee Compensation $- $ - $- $180,955 Employee Benefits $- $ - $- $84,996 Materials $- $- $- $3,209 Special Projects $- $- $- $100,000 Contingencies $- $- $- $80 Total Expenditures $- $- $- $369,240 Fund Balance $- $- $- $- General Fund Costs $- $- $- $369,240 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administrative Services 321 Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget PURCHASING MANAGER 0 0 0 1.00 Total 0 0 0 1.00 The increase in staffing is due to the addition of a Purchasing Manager. FY 2022-23 Adopted Budget Administrative Services 322 Budget Budget Unit 100-41-426 General Fund-Finance-Budget Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $340,600 Fund Balance $- General Fund Costs $340,600 %Funded by General Fund 100.0% Total Staffing 1.0 FTE Program Overview The Budget program develops, delivers, and manages the annual operating budget. The Budget program also develops and updates the twenty-year long-term financial forecast and revenue and expenditure projections. Additionally, the Budget program provides financial planning and fiscal analysis on City issues and complex business decisions. Service Objectives • Develops the annual operating budget. • Coordinates the preparation and publication of the operating budget document. • Communicates the budget through the City's interactive financial transparency portal. . Engages residents in the budgeting process. . Develops the Twenty-Year General Fund Financial Forecast. • Prepares and updates revenue and expenditure forecasts. . Analyze budget performance during the year and prepare Quarterly Financial Reports. • Provides departments with timely and accurate financial reports to assist them in their daily decision- making. . Assists departments with any necessary budget amendments during the year. . Advises the City in the areas of short and long-term financial planning and fiscal analysis. • Advises the City in developing and implementing sound financial policies. Adopted Budget On June 9,2022,City Council approved a budget of$340,600 for the Budget program. Budget is a new program for FY 2022-23. The City added a Budget Manager to provide more resources to manage the City's budget process.Previously,the Finance Manager managed all financial operations,including accounting,business licensing,and budget. FY 2022-23 Adopted Budget Administrative Services 323 Special Projects The following table shows the special projects for the fiscal year. Special Funding Strategic Appropriation Revenue Description Project Source Goal City Work Program:Analyze Analyze potential revenue measures,such Potential as transient occupancy tax,sales Sustainability 000 General Fund and Fiscal Revenue $50,000 $50, tax,property tax,and utility users Strategy Measures tax,to address possible future financing challenges. Total $50,000 $50,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues $- $- $- $- Expenditures Employee Compensation $- $- $- $180,955 Employee Benefits $- $ - $- $84,996 Materials $- $ - $- $21,091 Contract Services $- $- $- $2,957 Special Projects $- $- $- $50,000 Contingencies $- $- $- $601 Total Expenditures $- $- $- $340,600 Fund Balance $- $- $- $- General Fund Costs $- $- $- $340,600 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administrative Services 324 Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget BUDGET MANAGER 0 0 0 1.00 Total 0 0 0 1.00 The increase in staffing is due to the addition of a Budget Manager. FY 2022-23 Adopted Budget Administrative Services 325 Human Resources Budget Unit 100-44-412 General Fund-Human Resources-Human Resources Budget at a Glance 2023 Adopted Budget Total Revenues $1,706,378 Total Expenditures $1,520,541 Fund Balance $- General Fund Costs $(185,837) %Funded by General Fund -12.2% Total Staffing 4.9 FTE Program Overview The Human Resources Division is responsible for the administration of human resource, employee benefits, and labor relation programs including personnel selection, classification, compensation, equal employment opportunity, labor negotiations, employee relations, employee training and development, benefits, and retirement. In addition, Human Resources administers risk management, safety and wellness programs, and a self-insured workers' compensation program. Funding for retiree medical insurance is also covered in the Human Resources budget. Service Objectives • Provide a working environment where respect for the individual is encouraged and safeguarded. • Provide timely personnel services to departments and divisions in a fair, objective, and equitable manner. • Enter into agreements with employee groups concerning terms and conditions of employment. • Provide an employee development program addressing immediate and long-term training needs. • Provide departments a listing of qualified persons for employment consideration within sixty days of an authorized vacant position. . Ensure equal employment opportunities. . Administer classification plan. • Administer employee benefits. . Provide personnel services consistent with the operational needs of the user department. Adopted Budget On June 9, 2022, City Council approved a budget of $1,520,541 for the Human Resources program. This represents an increase of$41,426(2.8%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year. Contract Services are decreasing because a salary study and chief negotiator for labor negotiations were budgeted in FY 2021-22. Special projects are increasing due to the hybrid recruitment strategy and online marketing and branding. FY 2022-23 Adopted Budget Administrative Services 326 Special Projects The following table shows the special projects for the fiscal year. Special Funding Strategic Appropriation Revenue Description Project Source Goal Hybrid Consultant fees for search portion of Recruitment $40,000 $40,000 General Fund recruitments for Executive and Strategy Senior Management level positions, and other key positions as necessary Online Marketing Consultant fees to develop a and $50,000 $50,000 General Fund comprehensive Talent Attraction Branding campaign for the City City Work Program:Implement a trial student summer internship program with the City of Cupertino. Initial year will be on a limited basis. If approved,applications will be Public Student sought for one-,two-or three-week Internship $15,000 $15,000 General Fund internships during the summer,with ndgagement Program applications to be released in mid- Transparency July.Internships will be project- focused,with participating City departments asked to identify a specific project or projects that a student intern can undertake. Total $105,000 $105,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administrative Services 327 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $959,351 $1,609,812 $2,122,380 $1,706,378 Miscellaneous Revenue $- $22 $- $- Total Revenues $959,351 $1,609,834 $2,122,380 $1,706,378 Expenditures Employee Compensation $623,303 $635,667 $683,904 $711,571 Employee Benefits $321,161 $281,792 $327,828 $320,794 Materials $84,975 $58,330 $97,443 $113,063 Contract Services $463,988 $568,564 $358,540 $260,767 Cost Allocation $42,307 $- $- $- Special Projects $- $- $- $105,000 Contingencies $- $- $11,400 $9,346 Total Expenditures $1,535,734 $1,544,353 $1,479,115 $1,520,541 Fund Balance $- $- $- $- General Fund Costs $576,383 $(65,481) $(643,265) $(185,837) Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Budget Actual Actual Budget DIRECTOR OF ADMIN SERVICES 0.20 0.20 0.20 0.20 HUMAN RESOURCES ANALYST II 0.80 1.70 1.70 1.70 HUMAN RESOURCES MANAGER 1.00 1.00 1.00 1.00 HUMAN RESOURCES TECH 0.95 1.95 1.95 1.95 SENIOR MANAGEMENT 0.90 0 0 0 ANALYST Total 3.85 4.85 4.85 4.85 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Administrative Services 328 Retiree Benefits Budget Unit 642-44-414 Retiree Medical-Human Resources-Retiree Benefits Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $1,388,276 Fund Balance $(1,388,276) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview The Retiree Benefits program administers the City's Other Post-Employment Benefits(OPEB). Service Objectives Provide investment oversight and appropriate funding for the City's retiree medical liability. The City established a trust account with Public Agency Retirement Services (PARS) that will fund the future liability. Annual contributions from the City are deposited into the trust and invested in a portfolio of equity,bond, and money market funds. Adopted Budget On June 9,2022,City Council approved a budget of$1,388,276 for the Retiree Benefits program. This represents an increase of$146,350(11.8%)from the FY 2021-22 Adopted Budget. The increase is due to an increase in the actuarially determined contribution's normal cost for the City's Other Post-Employment Benefits (OPEB) plan. Starting in FY 2022-23, the City plans to fund OPEB costs with the City's Section 115 OPEB Trust as the City's OPEB plan is over 100% funded. Funding OPEB costs with the OPEB Trust will eliminate the transfers from the General Fund to the Retiree Medical Fund. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administrative Services 329 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Benefits $ 1,142,793 $1,220,074 $ 1,227,045 $1,373,494 Cost Allocation $6,262 $10,982 $14,881 $14,782 Total Expenditures $1,149,055 $1,231,056 $1,241,926 $1,388,276 Fund Balance $1,242,945 $(1,185,056) $(169,215) $(1,388,276) General Fund Costs $2,392,000 $46,000 $1,072,711 $- Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Administrative Services 330 Insurance Administration Budget Unit 100-44-417 General Fund-Human Resources-Insurance Administration Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $2,034,411 Fund Balance $- General Fund Costs $2,034,411 %Funded by General Fund 100.0% Total Staffing 0.2 FTE Program Overview The Insurance Administration program manages Risk Management safety programs and self-insured Workers' Compensation and General Liability programs. Service Objectives • Satisfy statutory regulations regarding Workers'Compensation and employee safety. • Promote work environment that emphasizes safe work practices. Adopted Budget On June 9,2022, City Council approved a budget of$2,034,411 for the Insurance Administration program. This represents an increase of$1,069,059(110.7%)from the FY 2021-22 Adopted Budget. The increase is primarily due to the annual premium increase for Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA). The premium is increasing by approximately $364,000, or 40%, compared to last year's actuals,and$761,000,or 147%,compared to last year's budget. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administrative Services 331 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $959,351 $- $- $- Total Revenues $959,351 $- $- $- Expenditures Employee Compensation $18,312 $16,053 $19,005 $19,953 Employee Benefits $8,734 $6,943 $8,730 $9,000 Materials $2 $- $- $- Contract Services $602,487 $764,636 $866,155 $1,903,469 Cost Allocation $7,789 $46,350 $49,808 $54,402 Contingencies $- $- $21,654 $47,587 Total Expenditures $637,324 $833,982 $965,352 $2,034,411 Fund Balance $- $- $- $- General Fund Costs $022,027) $833,982 $965,352 $2,034,411 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Budget Actual Actual Budget HUMAN RESOURCES ANALYST II 0.05 0.10 0.10 0.10 HUMAN RESOURCES TECH 0.05 0.05 0.05 0.05 SENIOR MANAGEMENT 0.05 0 0 0 ANALYST Total 0.15 0.15 0.15 0.15 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Administrative Services 332 Workers Compensation Insurance Budget Unit 620-44-418 Workers'Compensation-Human Resources-Workers Compensation Insurance Budget at a Glance 2023 Adopted Budget Total Revenues $436,145 Total Expenditures $516,946 Fund Balance $(80,801) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 0.2 FTE Program Overview This program provides oversight of the Workers' Compensation program, including claims, proactive Risk Management,return to work accommodations and excess workers compensation insurance. Service Objectives • Manage employee personal injuries and illnesses and provide proactive risk management for disability avoidance. . Monitor costs associated with claims. • Analyze and implement proactive measures to curtail costs. • Implement a return to work policy. Adopted Budget On June 9, 2022, City Council approved a budget of $516,946 for the Workers Compensation Insurance program.This represents an increase of$82,106(18.9%)from the FY 2021-22 Adopted Budget. The increase is due to an increase in the premium for Excess Workers' Compensation (PRISM). Worker's Compensation premiums have increased due to increases in the pool rates and the City's estimated FY 2022-23 payroll. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administrative Services 333 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $237,706 $246,381 $356,839 $436,145 Total Revenues $237,706 $246,381 $356,839 $436,145 Expenditures Employee Compensation $28,962 $28,358 $28,601 $29,045 Employee Benefits $16,712 $10,057 $12,312 $12,483 Materials $6,471 $- $- $- Contract Services $160,237 $35,105 $356,839 $436,145 Cost Allocation $16,672 $24,572 $28,167 $28,369 Contingencies $- $- $8,921 $10,904 Total Expenditures $229,054 $98,092 $434,840 $516,946 Fund Balance $8,653 $148,289 $(78,001) $ (80,801) General Fund Costs $- $- $- $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Budget Actual Actual Budget HUMAN RESOURCES ANALYST II 0.15 0.20 0.20 0.20 SENIOR MANAGEMENT 0.05 0 0 0 ANALYST Total 0.20 0.20 0.20 0.20 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Administrative Services 334 Short Term and Long Term Disability Budget Unit 641-44-419 Compensated Absence/LTD-Human Resources-Short Term and Long Term Disability Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $98,523 Fund Balance $(98,523) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview This program oversees claims and premiums associated with Short Term and Long Term Disability. Service Objectives . Obtain and manage insurance policies • Negotiate rates • Coordination of claims Adopted Budget On June 9, 2022, City Council approved a budget of $98,523 for the Short Term and Long Term Disability program.This represents an increase of$2,911 (3.0%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administrative Services 335 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Contract Services $167,319 $121,910 $90,000 $93,420 Cost Allocation $ 1,634 $2,712 $3,362 $2,767 Contingencies $- $- $2,250 $2,336 Total Expenditures $168,953 $124,622 $95,612 $98,523 Fund Balance $(168,953) $(124,622) $(95,612) $(98,523) General Fund Costs $- $- $- $- Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Administrative Services 336 Compensated Absences Budget Unit 641-44-420 Compensated Absence/LTD-Human Resources-Compensated Absences Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $646,650 Fund Balance $235,350 General Fund Costs $882,000 %Funded by General Fund 136.4% Total Staffing FTE Program Overview This program provides for payment of liabilities associated with employees retiring or leaving service. Service Objectives Properly account and disburse benefits as set forth in the employee contracts. Adopted Budget On June 9, 2022, City Council approved a budget of $646,650 for the Compensated Absences program. This represents an increase of$26,060(4.2%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year. The budget is estimated based on 50% of hours eligible to be cashed out. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Administrative Services 337 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Contract Services $381,199 $705,210 $600,000 $622,800 Cost Allocation $2,689 $5,055 $5,590 $8,280 Contingencies $- $- $ 15,000 $15,570 Total Expenditures $383,888 $710,265 $620,590 $646,650 Fund Balance $725,112 $(517,265) $ (599,020) $235,350 General Fund Costs $1,109,000 $193,000 $21,570 $882,000 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Administrative Services 338 Parks and Recreation FY 2022-23 Adopted Budget Parks and Recreation 339 This page intentionally left blank. FY 2022-23 Adopted Budget Parks and Recreation 340 Department Overview Budget Units Budget Unit Program 2023 Adopted Budget Parks and Recreation $2,370,011 100-60-601 Recreation Administration $ 1,769,745 100-60-636 Library Services $600,266 Business and Community Services $1,542,217 100-61-602 Administration $642,068 100-61-605 Cultural Events $493,143 100-61-630 Facilities $407,006 Recreation and Education $3,779,155 100-62-608 Administration $713,833 580-62-613 Youth Teen Recreation $1,504,209 100-62-623 Senior Center $1,076,295 100-62-639 Teen Programs $330,511 100-62-640 Neighborhood Events $154,307 Sports, Safety and Outdoor Recreation $5,692,057 100-63-612 Park Facilities $ 1,218,846 100-63-615 Administration $59,668 560-63-616 Blackberry Farm Golf Course $668,446 580-63-620 Outdoor Recreation $869,015 570-63-621 Sports Center Operations $2,876,082 Total $13,383,440 FY 2022-23 Adopted Budget Parks and Recreation 341 Budget at a Glance 2023 Adopted Budget Total Revenues $5,241,367 Total Expenditures $13,383,440 Fund Balance $(971,602) General Fund Costs $7,170,471 %Funded by General Fund 53.6% Total Staffing 29.5 FTE Organization Joanne Magrini,Director of Parks and Recreation Director Parks and Recreation Assistant Department Director Community Outreach Management Administrative Specialist(2) Analyst(2) Assistant Recreation Recreation Recreation Ccreation Manager Supervisor Manager pervisor Recreation Recreation Recreation Recreation Coordinator(3) Coordinator Coordinator(3) Coordinator(3) Senior Office Office Senior Office Senior Office Assistant(2) Assistant Assistant Assistant Office EA lity Assistant dant Facility E endant(2) FY 2022-23 Adopted Budget Parks and Recreation 342 Performance Measures Goal:Create a positive,healthy and connected community. Benefit:Cupertino has an exceptional system of parks and services that align with community values. FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target %of Parks and Recreation Department customers surveyed who rate services 98% 94% 91% 85% as good or excellent %of programs maintaining minimum 62% 46% 79 80/°/°° ° registration %Department's total cost recovery for 37% 39% 50% 40% all(direct and indirect)costs %change in participants* -16% -39% 117% +1% #of new programs or events offered 89 37 4 50 *Increase due to more programs offered and partial reopening of services. FY 2022-23 Adopted Budget Parks and Recreation 343 Workload Indicators Business and Community Services Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Number of reservations at Quinlan Center 273 8 94 Number of festival applications received 11 12 0 Recreation and Education Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Number of registrations 7,142 1,194 1,503 Number of survey respondants 1,501 171 230 Number of Senior Center classes offered 129 100 91 Number of Senior Center trips offered 19 0 0 Sports, Safety,and Outdoor Recreation Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Number of programs offered 332 888 517 Number of picnic reservations at BBF 227 9 76 Rounds of golf at BBF Golf Course 14,476 43,650 20,626 Sports Center Memberships 1,802 1,655 1,608 Adopted Budget On June 9, 2022, City Council approved a budget of$13,383,440 for the Parks and Recreation department. This represents a decrease of$534,228(-3.8%)from the FY 2021-22 Adopted Budget. The decrease is due to a reduction in Cost Allocation expenses as a result of lower IT costs and fewer financial transactions in FY 2020-21. This decrease is offset by an increase in Employee Compensation and Benefits due to the addition of a Community Outreach Specialist. FY 2022-23 Adopted Budget Parks and Recreation 344 Adopted Expenditures by Division ■ Sports, Safety and Outdoor Recreation Recreation and Education ■ Parks and Recreation Business and Community Services Department Expenditure History $13.8M $13.9M $13.4M $8.28M 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget FY 2022-23 Adopted Budget Parks and Recreation 345 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $562,335 $432,447 $878,500 $950,157 Charges for Services $4,821,021 $2,708,714 $4,071,395 $4,260,210 Miscellaneous Revenue $(7,245) $1,250 $31,000 $31,000 Total Revenues $5,376,111 $3,142,411 $4,980,895 $5,241,367 Expenditures Employee Compensation $3,954,752 $2,856,246 $4,481,811 $4,654,234 Employee Benefits $1,445,922 $1,233,077 $1,547,823 $1,652,215 Materials $475,640 $232,871 $764,765 $712,625 Contract Services $3,362,305 $1,845,424 $4,627,455 $4,504,330 Cost Allocation $4,527,709 $2,102,688 $2,243,403 $1,675,311 Special Projects $71,628 $9,432 $125,000 $65,000 Contingencies $- $- $127,411 $119,725 Total Expenditures $13,837,956 $8,279,738 $13,917,668 $13,383,440 Fund Balance $266,437 $1,791,839 $(1,242,062) $(971,602) General Fund Costs $8,728,282 $6,929,168 $7,694,711 $7,170,471 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Parks and Recreation 346 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 1.95 0.90 0.90 0.90 ASST DIR RECREATION COMM SVCS 1.00 0.95 0.95 0.85 CASE MANAGER 2.00 0 0 0 COMMUNITY OUTREACH 0.70 0.70 0.70 2.00 SPECIALIST DIRECTOR OF PARKS REC 0.95 0.95 0.95 0.95 FACILITY ATTENDANT 3.00 3.00 3.00 3.00 MANAGEMENT ANALYST 1.00 1.00 1.00 2.00 OFFICE ASSISTANT 2.00 2.00 2.00 2.00 RECREATION COORDINATOR 12.55 11.43 11.43 9.88 RECREATION COORDINATOR LTD 1.00 0 0 0 TERM RECREATION MANAGER 0 0 0 1.90 RECREATION SUPERVISOR 4.00 3.95 3.95 2.00 SR OFFICE ASSISTANT 3.00 3.00 3.00 4.00 Total 33.15 27.88 27.88 29.48 FY 2022-23 Adopted Budget Parks and Recreation 347 Recreation Administration Budget Unit 100-60-601 General Fund-Parks and Recreation-Recreation Administration Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $1,769,745 Fund Balance $- General Fund Costs $1,769,745 %Funded by General Fund 100.0% Total Staffing 6.7 FTE Program Overview The Recreation Administration program provides overall department administration, project management, community outreach, support to the Parks and Recreation and Library Commissions, and administration of recreation management software. Service Objectives • Provide overall department administration, budget control, contract support, policy development, administration of recreation management software,and employee development and evaluation. • Support the Planning and Public Works Departments in the development, renovation, and improvements of parks and open spaces. . Implementation of recommendations from the Parks and Recreation System Master Plan. • Monitor and facilitate partnerships in regards to Library and other community organizations. • Outreach to the community in conjunction with programs and the Parks and Recreation System Master Plan. • Promote partnerships with Cupertino Union School District, Fremont Union High School District, and De Anza College. Adopted Budget On June 9,2022, City Council approved a budget of$1,769,745 for the Recreation Administration program.This represents an increase of$317,489(21.9%)from the FY 2021-22 Adopted Budget. The increase in Employee Compensation and Benefits is due to the reorganization of staff within the Department and the addition of a Management Analyst and Community Outreach Specialist. This is partially offset by a reduction in Special Projects,which vary from year to year. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Parks and Recreation 348 Special Project Appropriation Revenue Source Funding Description Strategic Goal City Work Program:Many seniors have a wealth of lifelong experiences.Many teens do not have grandparents nearby. Public Intergenerational $20 General Activities cross generations Engagement Engagement ,000 $20,000 Fund could benefit both.Schools and could engage seniors in the Transparency community to attend school open house or serve as volunteers,such as reading partners City Work Program: Address the needs of seniors in collaboration with the City Council and Commissions.Needs to address include technology Public resources,housing,food Senior Strategy $35,000 $35,000 General supply,transportation,and Engagement Fund and mental and physical health and wellbeing.Administer a Transparency second in-depth senior survey to learn about senior needs(including aging in place and elder financial abuse). City Work Program: Collaborate with groups such as the Fine Arts Artwork at the Commission and Cupertino Library/Exhibits/Poetry $10,000 $10,000 General Poet Laureate to display Quality of and Art Day Fund artwork,including exhibits, Life at the Library.Exhibits could potentially be around the library and in the new programming space. Total $65,000 $65,000 FY 2022-23 Adopted Budget Parks and Recreation 349 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $609,735 $559,798 $712,741 $972,240 Employee Benefits $211,543 $234,509 $316,133 $440,265 Materials $103,613 $38,274 $209,446 $209,269 Contract Services $62,355 $40,307 $80,805 $75,843 Cost Allocation $27,563 $- $- $- Special Projects $- $- $124,000 $65,000 Contingencies $- $- $9,131 $7,128 Total Expenditures $1,014,809 $872,888 $1,452,256 $1,769,745 Fund Balance $- $- $- $- General Fund Costs $1,014,809 $872,887 $1,452,256 $1,769,745 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 0.95 0.90 0.90 0.90 ASST DIR RECREATION COMM SVCS 1.00 0.95 0.95 0.85 COMMUNITY OUTREACH 0.70 0.70 0.70 2.00 SPECIALIST DIRECTOR OF PARKS REC 0.95 0.95 0.95 0.95 MANAGEMENT ANALYST 1.00 1.00 1.00 2.00 Total 4.60 4.50 4.50 6.70 Staff time has increased based on the reallocation and reclassification of a Recreation Coordinator position to a Management Analyst and addition of a Community Outreach Specialist. FY 2022-23 Adopted Budget Parks and Recreation 350 Library Services Budget Unit 100-60-636 General Fund-Parks and Recreation-Library Services Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $600,266 Fund Balance $- General Fund Costs $600,266 %Funded by General Fund 100.0% Total Staffing FTE Program Overview This budget augments the existing library service currently provided to our community through the Santa Clara County(SCC)Library Joint Powers Authority. Service Objectives • Provide increased library service for our constituents through support of 12 additional operational hours per week. • Explore partnerships with the SCC Library for recreation and community programs. Adopted Budget On June 9,2022, City Council approved a budget of$600,266 for the Library Services program. This represents a decrease of$5,262(-0.9%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Parks and Recreation 351 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Contract Services $117,000 $- $371,738 $419,452 Cost Allocation $681,040 $198,415 $233,790 $ 180,814 Total Expenditures $798,040 $198,415 $605,528 $600,266 Fund Balance $- $- $- $- General Fund Costs $798,040 $198,415 $605,528 $600,266 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Parks and Recreation 352 Administration Budget Unit 100-61-602 General Fund-Business and Community Services-Administration Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $642,068 Fund Balance $- General Fund Costs $642,068 %Funded by General Fund 100.0% Total Staffing 3.4 FTE Program Overview The Business Division supports department programs and services through the provision of customer service and analytical support, development, and administration of policies. The division is also responsible for the department's community outreach programs, including community festivals and City events at a variety of parks. This division also manages Quinlan Community Center (QCC) and Community Hall, as well as facility and park picnic rentals. Service Objectives • Provide first-rate customer service through the implementation of consistent policies, procedures, and performance standards. . Administer recreation software system for customer registration, memberships, point-of-sale, and facility rentals. • Collect and analyze data from customer satisfaction surveys and program and revenue reports to improve programs and services. • Increase participation at City events including 4th of July, Big Bunny 5k and Kids Fun Run, Summer Concerts,Movies in the Park,Shakespeare in the Park,and the Tree Lighting Ceremony. . Issue parks and facilities permits for individual customers as well as community festivals and events that promote our diverse culture and connected community. . Maintain a positive relationship with neighborhoods adjacent to our facilities and parks. Adopted Budget On June 9,2022,City Council approved a budget of$642,068 for the Administration program. This represents a decrease of$80,069(-11.1%)from the FY 2021-22 Adopted Budget. The decrease is mainly due to reductions in Cost Allocations and Employee Compensation and Benefits. FY 2022-23 Adopted Budget Parks and Recreation 353 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $336,728 $308,484 $309,384 $280,090 Employee Benefits $176,722 $173,798 $183,164 $172,255 Materials $1,159 $476 $2,315 $2,440 Cost Allocation $147,895 $254,093 $227,216 $187,222 Contingencies $- $- $58 $61 Total Expenditures $662,504 $736,851 $722,137 $642,068 Fund Balance $- $- $- $- General Fund Costs $662,503 $736,851 $722,137 $642,068 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ADMINISTRATIVE ASSISTANT 1.00 0 0 0 OFFICE ASSISTANT 1.00 1.00 1.00 1.00 RECREATION COORDINATOR 0.50 0.35 0.35 0.35 RECREATION SUPERVISOR 0.50 0.40 0.20 0 SR OFFICE ASSISTANT 2.00 2.00 2.00 2.00 Total 5.00 3.75 3.55 3.35 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Parks and Recreation 354 Cultural Events Budget Unit 100-61-605 General Fund-Business and Community Services-Cultural Events Budget at a Glance 2023 Adopted Budget Total Revenues $31,000 Total Expenditures $493,143 Fund Balance $- General Fund Costs $462,143 %Funded by General Fund 93.7% Total Staffing 0.9 FTE Program Overview The Business and Community Service Division's events program produces the City's special events including 4th of July festivities and Big Bunny 5K, and those hosted at Memorial Park and Quinlan Community Center including the Summer Concert Series,Movies in the Park,Shakespeare in the Park,and Tree Lighting.This staff also serves as liaison and issues permits for community festivals at Memorial Park including the Cherry Blossom Festival, World Journal Festival, Kids 'N Fun Festival, Rotary Fall Festival, Veteran's Day Memorial Ceremony, Diwali Festival, Bhubaneswar Sister City's India Heritage Fair, Dilli Haat, Holi, Relay for Life, and more. Service Objectives • Provide a summer concert series at Memorial Park. • Produce a summer movie series at Memorial Park. • Partner with the San Francisco Shakespeare Company to produce Free Shakespeare in the Park in Cupertino. • Organize and facilitate the 4th of July Independence Day celebration and fireworks show. • Organize and facilitate the Big Bunny 5K fun run. . Bring the community together with the annual Tree Lighting celebration. • Serve as liaison and issue special event permits to nonprofit organization event producers to ensure successful community and cultural festivals in Memorial Park. Adopted Budget On June 9, 2022, City Council approved a budget of$493,143 for the Cultural Events program. This represents an increase of$60,006(13.9%)from the FY 2021-22 Adopted Budget. The increase in Employee Compensation and Benefits is due to the reorganization of the Department and reallocation of a Recreation Manager to match the responsibilities assigned to the position. The following table shows all festival costs for FY 2022-23. FY 2022-23 Adopted Budget Parks and Recreation 355 Waived Fees City Paid Expenses Festival Facility/Park/ Festival Date Recreation Public Works Sheriff Materials Total Producer Road Permits Taiwanese Cultural and Kids'N Fun Sports Festival 13-Aug-22 Association $2,376 $5,510 $3,219 $4,852 $15,957 Dilli Haat 10-Sep-22 WomenNow $2,376 $3,000 $2,812 $4,003 $12,191 Day N Night Cupertino Fun Fest 24-Sep-22 Rotary $2,561 $4,304 $4,111 $5,822 $16,798 Cupertino Diwali Chamber of Festival 8-Oct-22 Commerce $2,207 $3,530 $3,176 $4,852 $13,764 Veteren's Veterans Day 11-Nov-22 Memorial $675 $1,000 $0 $0 $1,500 $3,175 February WAFU Ikebana (postponed Ikebana $2,944 $18,507 $543 $0 $21,994 Flower Show from Oct 22') Society The Home of Christ Church in Egg Hunt April 1,2023 Cupertino $681 $2,000 $23 $0 $2,704 Cupertino Chamber of Holi 1-Apr-23 Commerce $1,354 $1,720 $300 $2,183 $5,557 Cherry April 29-30, Toyokawa Blossom 2023 Sister City $4,537 $16,878 $6,628 $9,461 $37,504 Cupertino India Heritage Bhubaneswar Fair 18-Mar-23 Sister City $2,037 $5,010 $3,136 $2,911 $13,094 American Cancer Relay for Life 17-Jun-23 Society $309 $2,576 $14 $0 $2,899 $22,059 $64,034 $23,962 $34,082 $1,500 TOTAL TOTAL Waived Fees $110,054 City Paid $35,582 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Parks and Recreation 356 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Miscellaneous Revenue $(8,595) $- $31,000 $31,000 Total Revenues $(8,595) $- $31,000 $31,000 Expenditures Employee Compensation $77,563 $47,926 $88,433 $ 130,441 Employee Benefits $29,605 $28,554 $31,624 $47,977 Materials $18,199 $17,436 $34,737 $36,058 Contract Services $122,202 $8,265 $219,004 $217,784 Cost Allocation $43,037 $58,947 $52,995 $54,537 Contingencies $- $- $6,344 $6,346 Total Expenditures $290,606 $161,128 $433,137 $493,143 Fund Balance $- $- $- $- General Fund Costs $299,202 $161,129 $402,137 $462,143 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget RECREATION COORDINATOR 0.50 0.50 0.50 0.65 RECREATION MANAGER 0 0 0 0.25 Total 0.50 0.50 0.50 0.90 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Parks and Recreation 357 Facilities Budget Unit 100-61-630 General Fund-Business and Community Services-Facilities Budget at a Glance 2023 Adopted Budget Total Revenues $203,660 Total Expenditures $407,006 Fund Balance $- General Fund Costs $203,346 %Funded by General Fund 50.0% Total Staffing 2.3 FTE Program Overview Community Hall provides space for City Council meetings and various Commission meetings, as well as facility rental space available for a variety of activities including business meetings, community events, and Cupertino Library programs.The Quinlan Community Center houses the administrative office of the Parks and Recreation Department and serves as facility space for rentals and a variety of recreational, social, and community activities. Service Objectives • Provide a rental facility for community meetings, business functions, social events, and other similar activities. • Provide a facility for City Channel programming, and City Council, Planning Commission, Parks and Recreation Commission and other City meetings. • Offer in-person and online registration for recreation programs. . Schedule facility space for contractual and staff-run classes and camps. • House the Cupertino Historical Society. • Serve as an Emergency Operations Shelter in case of disasters. Adopted Budget On June 9, 2022, City Council approved a budget of $407,006 for the Facilities program. This represents an increase of$40,113(10.9%)from the FY 2021-22 Adopted Budget. The increase in Employee Compensation and Benefits is due to the reorganization of the Department and reclassification of the Recreation Supervisor to Recreation Manager to match the increase in responsibilities and duties assigned to the position. FY 2022-23 Adopted Budget Parks and Recreation 358 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $118,874 $12,061 $115,000 $145,000 Charges for Services $404,343 $37,055 $53,395 $58,660 Total Revenues $523,217 $49,116 $168,395 $203,660 Expenditures Employee Compensation $255,932 $185,667 $237,255 $263,790 Employee Benefits $89,831 $90,201 $93,053 $103,297 Materials $13,486 $9,722 $28,121 $29,105 Contract Services $19,164 $210 $7,572 $9,840 Cost Allocation $58,657 $- $- $- Contingencies $- $- $892 $974 Total Expenditures $437,070 $285,800 $366,893 $407,006 Fund Balance $- $- $- $- General Fund Costs $(86,147) $236,685 $198,498 $203,346 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget FACILITY ATTENDANT 2.00 2.00 2.00 2.00 RECREATION MANAGER 0 0 0 0.25 RECREATION SUPERVISOR 0.50 0.50 0.20 0 Total 2.50 2.50 2.20 2.25 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Parks and Recreation 359 Administration Budget Unit 100-62-608 General Fund-Recreation and Education-Administration Budget at a Glance 2023 Adopted Budget Total Revenues $12,500 Total Expenditures $713,833 Fund Balance $- General Fund Costs $701,333 %Funded by General Fund 98.2% Total Staffing 3.1 FTE Program Overview This program includes administrative support of senior programs offered at the Senior Center. Administrative duties support the facility and senior programs that focus on enhancing a healthy lifestyle through quality education,recreation,travel,socials,community resources,volunteer opportunities,and facility rentals. Service Objectives • Provide management and supervision of all programs, activities, personnel, and facilities within the senior services division. • Establish program goals and priorities. • Ensure operational hours accommodate community desires. . Provide first-rate customer service and manage customer registration, memberships, point-of-sale, and facility rentals at the Senior Center. Adopted Budget On June 9,2022, City Council approved a budget of$713,833 for the Administration program. This represents a decrease of$8,326(-1.2%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Parks and Recreation 360 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $17,816 $(320) $12,500 $12,500 Miscellaneous Revenue $- $1,125 $- $- Total Revenues $17,816 $805 $12,500 $12,500 Expenditures Employee Compensation $329,984 $264,940 $360,823 $369,426 Employee Benefits $135,429 $122,697 $148,586 $155,590 Materials $7,627 $4,457 $16,039 $14,813 Contract Services $431 $1,074 $3,640 $3,640 Cost Allocation $311,932 $240,121 $192,579 $169,903 Contingencies $- $- $492 $461 Total Expenditures $785,403 $633,289 $722,159 $713,833 Fund Balance $- $- $- $- General Fund Costs $767,588 $632,484 $709,659 $701,333 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget CASE MANAGER 0.10 0 0 0 FACILITY ATTENDANT 1.00 1.00 1.00 1.00 RECREATION COORDINATOR 0.30 0.30 0.30 0.30 RECREATION SUPERVISOR 0.95 0.75 0.75 0.75 SR OFFICE ASSISTANT 1.00 1.00 1.00 1.00 Total 3.35 3.05 3.05 3.05 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Parks and Recreation 361 Youth Teen Recreation Budget Unit 580-62-613 Recreation Program-Recreation and Education-Youth Teen Recreation Budget at a Glance 2023 Adopted Budget Total Revenues $674,550 Total Expenditures $1,504,209 Fund Balance $(829,659) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 1.7 FTE Program Overview This program encompasses fee-based youth and teen programs such as academic and enrichment classes, STEAM programming, recreational camps, preschool, and special events, enrichment classes for adults, and special interest programming. Service Objectives • Provide a preschool program, summer camps, and an extensive variety of contract classes for youth, teens, and adults, while collaborating with the Cupertino Union School District and Fremont Union High School District on select program offerings. • Promote programs through social media to increase community awareness and interest in programs. . Increase the number of youth and teen Science, Technology, Engineering, Art, and Math (STEAM) programs offered. • Expand all-day summer camp offerings to meet daycare needs of working families. . Provide family-oriented programs designed to increase community engagement. • Provide safe, fun, life-long learning activities that promote the foundations of self-confidence, skill development,and personal growth. . Provide programs that enhance cultural awareness to youth and teens. Adopted Budget On June 9, 2022, City Council approved a budget of $1,504,209 for the Youth Teen Recreation program. This represents a decrease of$324,636(-17.8%)from the FY 2021-22 Adopted Budget. The decrease is due to reductions in Employee Compensation and Benefits, as a result of the reorganization of the Department and reallocation of staff time from this program. The decrease is also includes a reduction in Contact Services expenses, due to the adjustment in programs offered, and reduction in Cost Allocation expenses. FY 2022-23 Adopted Budget Parks and Recreation 362 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $1,195,694 $351,184 $742,000 $674,550 Total Revenues $1,195,694 $351,184 $742,000 $674,550 Expenditures Employee Compensation $332,247 $131,866 $470,409 $394,702 Employee Benefits $97,533 $59,981 $102,897 $101,525 Materials $15,732 $1,252 $31,437 $33,396 Contract Services $695,551 $172,604 $918,285 $790,249 Cost Allocation $1,068,022 $194,033 $282,074 $163,746 Contingencies $- $- $23,743 $20,591 Total Expenditures $2,209,085 $559,736 $1,828,845 $1,504,209 Fund Balance $ (1,013,391) $(208,552) $(1,086,845) $(829,659) General Fund Costs $- $- $- $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget RECREATION COORDINATOR 1.35 1.35 1.35 1.50 RECREATION MANAGER 0 0 0 0.20 RECREATION SUPERVISOR 0.25 0.25 0.35 0 Total 1.60 1.60 1.70 1.70 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Parks and Recreation 363 Senior Center Budget Unit 100-62-623 General Fund-Recreation and Education-Senior Center Budget at a Glance 2023 Adopted Budget Total Revenues $154,500 Total Expenditures $1,076,295 Fund Balance $- General Fund Costs $921,795 %Funded by General Fund 85.6% Total Staffing 3.0 FTE Program Overview This program includes the coordination and delivery of program services for seniors at the Senior Center. Staff coordinates a well-maintained Senior Center for adults age 50+ including senior adult recreation programs such as enrichment classes, educational presentations, group trips and tours, and social events.In addition, the Senior Center team leverages members to support programs and services through volunteer opportunities. Staff provides referrals for resources available to seniors. Service Objectives • Enhance partnerships with the Santa Clara County Library District, De Anza College, and other local nonprofit agencies. • Provide appreciation events for senior volunteers who support the Parks and Recreation Department throughout the year. • Offer fitness and enrichment courses, educational presentations, group trips and tours, and socialization opportunities to adults age 50+. • Provide volunteer service opportunities for adults age 50+. • Provide a senior-focused annual health fair and senior resource referrals. Adopted Budget On June 9,2022, City Council approved a budget of$1,076,295 for the Senior Center program.This represents a decrease of$41,356(-3.7%)from the FY 2021-22 Adopted Budget. The overall decrease is due to an increase in contract costs,offset by Cost Allocation expenses. With the recent relaxation of prior pandemic-based restrictions, the Senior Center has reopened and is offering more programs and classes. FY 2022-23 Adopted Budget Parks and Recreation 364 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $252 $- $- $- Charges for Services $361,427 $38,081 $ 164,000 $ 154,500 Miscellaneous Revenue $1,350 $125 $- $- Total Revenues $363,029 $38,206 $164,000 $154,500 Expenditures Employee Compensation $470,472 $332,944 $418,283 $414,263 Employee Benefits $177,296 $160,139 $155,952 $158,309 Materials $85,075 $5,718 $116,815 $116,673 Contract Services $199,364 $(86,272) $126,280 $151,492 Cost Allocation $357,244 $356,195 $294,244 $228,854 Contingencies $- $- $6,077 $6,704 Total Expenditures $1,289,451 $768,724 $1,117,651 $1,076,295 Fund Balance $- $- $- $- General Fund Costs $926,421 $730,517 $953,651 $921,795 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget CASE MANAGER 1.90 0 0 0 RECREATION COORDINATOR 2.70 2.70 2.70 2.70 RECREATION SUPERVISOR 0.05 0.25 0.25 0.25 Total 4.65 2.95 2.95 2.95 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Parks and Recreation 365 Teen Programs Budget Unit 100-62-639 General Fund-Recreation and Education-Teen Programs Budget at a Glance 2023 Adopted Budget Total Revenues $3,800 Total Expenditures $330,511 Fund Balance $- General Fund Costs $326,711 %Funded by General Fund 98.9% Total Staffing 0.8 FTE Program Overview This program supports teen programs and services for the Recreation and Education Division. It provides for the supervision and operation of the Cupertino Teen Center, the Youth Activity Board, the Cupertino Teen Leadership Academy,and the teen summer volunteer program. Service Objectives • Empower youth by creating enriching and stress-free programs that foster physical, mental, and social development. • Provide an exclusive space for Cupertino Teens to de-stress,create,study,and to socially develop. • Create opportunities for youth and teens to build their leadership abilities by creating activities, events, and programs by teens for teens. • Create reciprocal engagement and outreach efforts between the City of Cupertino and Cupertino teens. . Develop teen leadership skills and career growth opportunities by providing an interactive teen leadership program. • Provide the opportunity for teens to gain applied skills and develop leadership abilities by participating in the Leader in Training or Junior Swim Instructor programs. • Create programs that support mental health and wellness in youth and teens. Adopted Budget On June 9,2022,City Council approved a budget of$330,511 for the Teen Programs program.This represents a decrease of$37,327(-10.1%)from the FY 2021-22 Adopted Budget. The decrease includes reductions in Employee Compensation and Benefits, due to the reorganization of the Department and reallocation of staff time from this program,and reductions in Cost Allocation expenses. FY 2022-23 Adopted Budget Parks and Recreation 366 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $2,030 $- $1,000 $1,900 Charges for Services $2,388 $- $2,000 $ 1,900 Total Revenues $4,418 $- $3,000 $3,800 Expenditures Employee Compensation $117,060 $38,112 $208,032 $183,394 Employee Benefits $16,625 $15,322 $44,515 $39,807 Materials $18,747 $3,513 $45,616 $51,506 Contract Services $145 $40,841 $800 $7,800 Cost Allocation $- $28,397 $67,715 $46,734 Contingencies $- $- $1,160 $1,270 Total Expenditures $152,577 $126,185 $367,838 $330,511 Fund Balance $- $- $- $- General Fund Costs $148,159 $126,185 $364,838 $326,711 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget RECREATION COORDINATOR 0.35 0.35 0.35 0.50 RECREATION MANAGER 0 0 0 0.25 RECREATION SUPERVISOR 0 0.20 0.40 0 Total 0.35 0.55 0.75 0.75 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Parks and Recreation 367 Neighborhood Events Budget Unit 100-62-640 General Fund-Recreation and Education-Neighborhood Events Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $ 154,307 Fund Balance $- General Fund Costs $154,307 %Funded by General Fund 100.0% Total Staffing 0.0 FTE Program Overview The Neighborhood Programs provide a varied schedule of summer events in neighborhood parks. Events include outdoor concerts,outdoor movies,performances,and free arts and fitness programs in the parks.These programs are designed to engage new customers and to promote current programs. Service Objectives . To provide outdoor summer concerts in neighborhood parks. • To provide outdoor summer movies in neighborhood parks. . To provide outdoor summer fitness opportunities in neighborhood parks. • To provide outdoor summer arts opportunities in neighborhood parks. • To provide an array of outdoor cultural special events in neighborhood parks. . To provide activities for kids and families of all ages. Adopted Budget On June 9, 2022, City Council approved a budget of $154,307 for the Neighborhood Events program. This represents a decrease of$8,812(-5.4%)from the FY 2021-22 Adopted Budget. The overall decrease is mainly due to a reduction in Cost Allocation expenses, offset by increases in Employee Compensation due to the anticipated return of Summer Events,requiring more part-time staff support. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Parks and Recreation 368 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $55,145 $9,544 $52,384 $60,080 Employee Benefits $4,065 $3,967 $6,904 $1,652 Materials $11,693 $- $14,756 $15,318 Contract Services $45,920 $460 $59,800 $59,800 Cost Allocation $- $ 12,683 $27,411 $15,579 Contingencies $- $- $1,864 $1,878 Total Expenditures $116,823 $26,654 $163,119 $154,307 Fund Balance $- $- $- $- General Fund Costs $116,823 $26,654 $163,119 $154,307 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget RECREATION SUPERVISOR 0.10 0.10 0.10 0 Total 0.10 0.10 0.10 0 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Parks and Recreation 369 Park Facilities Budget Unit 100-63-612 General Fund-Sports,Safety and Outdoor Recreation-Park Facilities Budget at a Glance 2023 Adopted Budget Total Revenues $265,757 Total Expenditures $1,218,846 Fund Balance $- General Fund Costs $953,089 %Funded by General Fund 78.2% Total Staffing 3.2 FTE Program Overview Blackberry Farm provides the community with recreational space to swim, picnic, enjoy ranger-led activities, and the Stevens Creek Trail. McClellan Ranch Preserve offers environmental education classes/creek tours to school groups, nature programs, and is the location of the Community Garden program and non-profit operations such as Grassroots Ecology, Santa Clara Valley Audubon Society, UCCE Master Gardeners, and Rolling Hills 4-H Club. The Creekside Park building provides community members with facility space which can be used for a variety of activities.The Monta Vista Recreation Center provides additional facility space and is home to a diverse array of recreational activities including gymnastics classes. Service Objectives Blackberry Farm Picnic Grounds and Pools: • Provide the community with two pools for recreation use and swim lessons. • Engage and provide the community with annual 4th of July and Pooch Plunge events. • Partner with the Audubon Society to provide Wildlife&Harvest Day at Blackberry Farm. . Increase residential usage of the facility. • Continue to offer Park Ranger-led activities such as interpretive walks, star-gazing events, and implement a Stevens Creek Corridor volunteer program. McClellan Ranch Preserve: • Continue to offer drop-in visitor hours at the Environmental Education Center and Blacksmith Shop. • Partner with SCVAS, Grassroots Ecology, Watershed Stewardship Program Members, Santa Clara Valley Audubon Society, Rolling Hills 4H and UCCE Master Gardeners in providing public education programs. • Expand programming opportunities for teens. . Increase volunteer/docent opportunities at McClellan Ranch. • Continue to develop the community garden programming. Creekside Park Building: FY 2022-23 Adopted Budget Parks and Recreation 370 • Rent facility for nonprofit board meetings, birthday parties, school group picnics, and other similar activities. • Provide contract and staff-run classes and camps. • Provide space for year-round farmers'market. Monta Vista Recreation Center: • Provide gymnastics,classes,and camps. . Make space available for co-sponsored clubs and rentals. Adopted Budget On June 9, 2022, City Council approved a budget of$1,218,846 for the Park Facilities program. This represents a decrease of$61,290(-4.8%)from the FY 2021-22 Adopted Budget. The overall decrease is mainly due to reductions in Cost Allocation expenses, offset by an increase in Contract Services. This is due to an increase in cost for contracted services for nature preservation and maintenance at the McClellan Ranch Preserve and Stevens Creek Corridor. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $61,446 $19,389 $57,000 $90,757 Charges for Services $122,328 $23,227 $105,000 $175,000 Total Revenues $183,774 $42,616 $162,000 $265,757 Expenditures Employee Compensation $556,910 $414,084 $685,551 $678,976 Employee Benefits $142,660 $154,064 $149,233 $172,107 Materials $56,796 $29,835 $91,460 $94,202 Contract Services $13,937 $80,076 $87,380 $102,503 Cost Allocation $1,202,972 $229,792 $261,016 $166,140 Special Projects $71,628 $3,218 $1,000 $- Contingencies $- $- $4,496 $4,918 Total Expenditures $2,044,903 $911,069 $1,280,136 $1,218,846 Fund Balance $- $- $- $- General Fund Costs $1,861,129 $868,454 $1,118,136 $953,089 FY 2022-23 Adopted Budget Parks and Recreation 371 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget RECREATION COORDINATOR 2.68 2.18 2.18 1.98 RECREATION COORDINATOR LTD 1.00 0 0 0 TERM RECREATION MANAGER 0 0 0 0.35 RECREATION SUPERVISOR 0.60 0.50 0.50 0 SR OFFICE ASSISTANT 0 0 0 0.85 Total 4.28 2.68 2.68 3.18 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Parks and Recreation 372 Administration Budget Unit 100-63-615 General Fund-Sports,Safety and Outdoor Recreation-Administration Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $59,668 Fund Balance $- General Fund Costs $59,668 %Funded by General Fund 100.0% Total Staffing 0.0 FTE Program Overview This program supports facets of the Sports, Safety, and Outdoor Recreation Division. It provides for the supervision and operation of the Blackberry Farm Golf Course, Blackberry Farm picnic area and swimming pools, and McClellan Ranch Preserve. The Sports, Safety, and Outdoor Recreation Division includes a diverse offering of recreation programs for all ages including nature camps, classes, and programs, volunteer opportunities,drop-in activities,special events,aquatics,golf,and specialty classes. Service Objectives • Efficiently manage the Blackberry Farm Golf Course,Blackberry Farm picnic sites and swimming pools, and McClellan Ranch Preserve. • Continue to improve coordination among staff within the Stevens Creek Corridor in order to enhance customer service and the experience for park visitors. • Oversee marketing,budget development,and program plans for all locations. . Continue to operate the aquatics program. • Continue to expand nature programming opportunities in the Stevens Creek Corridor. Adopted Budget On June 9, 2022, City Council approved a budget of$59,668 for the Administration program. This represents a decrease of$58,283(49.4%)from the FY 2021-22 Adopted Budget. The overall decrease is mainly due to reductions in Cost Allocation expenses in addition to Employee Compensation and Benefits, due to the reorganization of the Department and reallocation of staff time from this program. FY 2022-23 Adopted Budget Parks and Recreation 373 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $38,405 $25,152 $55,657 $26,058 Employee Benefits $14,462 $9,821 $24,944 $9,665 Materials $475 $145 $273 $284 Contract Services $20 $- $- $- Cost Allocation $43,392 $31,790 $37,070 $23,654 Contingencies $- $ - $7 $7 Total Expenditures $96,754 $66,908 $117,951 $59,668 Fund Balance $- $- $- $- General Fund Costs $96,755 $66,907 $117,951 $59,668 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget RECREATION SUPERVISOR 0.40 0.45 0.45 0 Total 0.40 0.45 0.45 0 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Parks and Recreation 374 Blackberry Farm Golf Course Budget Unit 560-63-616 Blackberry Farm-Sports,Safety and Outdoor Recreation-Blackberry Farm Golf Course Budget at a Glance 2023 Adopted Budget Total Revenues $433,600 Total Expenditures $668,446 Fund Balance $(234,846) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 1.1 FTE Program Overview Blackberry Farm Golf Course provides a nine-hole golf facility to the community that serves all ages. Service Objectives . Increase the golfer base through golf instruction, family events,high school golf team partnerships, and leagues. • Continue to operate a golf course pro shop where customers may purchase golfing accessories and concessions. Adopted Budget On June 9, 2022, City Council approved a budget of $668,446 for the Blackberry Farm Golf Course program. This represents a decrease of$11,200(-1.6%)from the FY 2021-22 Adopted Budget. The overall decrease is due to the reduction in Materials as a result of the reallocation of maintenance costs to Public Works,under the account 560-87-260. This is offset by an increase in Employee Compensation from the reorganization of the Department and reallocation of staff time to this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Parks and Recreation 375 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $32,687 $46,477 $30,000 $33,000 Charges for Services $305,524 $564,126 $310,000 $400,600 Total Revenues $338,211 $610,603 $340,000 $433,600 Expenditures Employee Compensation $101,209 $99,697 $175,778 $205,806 Employee Benefits $53,912 $7,871 $60,543 $61,909 Materials $96,060 $101,977 $105,045 $24,302 Contract Services $252,429 $248,691 $274,845 $278,428 Cost Allocation $82,294 $74,431 $53,938 $90,433 Contingencies $- $- $9,497 $7,568 Total Expenditures $585,904 $532,667 $679,646 $668,446 Fund Balance $362,307 $527,935 $(259,654) $(234,846) General Fund Costs $610,000 $450,000 $79,992 $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget RECREATION COORDINATOR 1.00 1.00 1.00 0.65 RECREATION MANAGER 0 0 0 0.30 RECREATION SUPERVISOR 0.15 0.15 0.15 0 SR OFFICE ASSISTANT 0 0 0 0.15 Total 1.15 1.15 1.15 1.10 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Parks and Recreation 376 Outdoor Recreation Budget Unit 580-63-620 Recreation Program-Sports,Safety and Outdoor Recreation-Outdoor Recreation Budget at a Glance 2023 Adopted Budget Total Revenues $862,000 Total Expenditures $869,015 Fund Balance $368,985 General Fund Costs $376,000 %Funded by General Fund 43.3% Total Staffing 1.1 FTE Program Overview This program encompasses the coordination and delivery of a wide range of sports, fitness, and outdoor activities for youth and adults. Service Objectives • Operate a summer learn-to-swim program for infants,children,teens,and adults. • Coordinate spring, summer,and fall adult softball leagues. . Provide sports,dance,fitness,and wellness classes for youth,teens,and adults. • Provide sports,fitness,and outdoor camps for youth and teens. • Provide a summer nature and science program. . Manage user group field rentals under the Cupertino Union School District/City Joint Use Agreement. • Increase nature,blacksmithing, and environmental classes for parent/child,teens,and adults. • Offer fee-based gardening programs for youth and adults. Adopted Budget On June 9, 2022, City Council approved a budget of $869,015 for the Outdoor Recreation program. This represents a decrease of$288,997(-25.0%)from the FY 2021-22 Adopted Budget. The decrease is mainly due to the reduction in Contract services, due to the adjustment in programs offered, Cost Allocation expenses, and Employee Compensation and Benefits from the reorganization of the Department and reallocation of staff time from this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Parks and Recreation 377 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $62,726 $82,033 $312,000 $317,000 Charges for Services $330,156 $157,654 $345,000 $545,000 Total Revenues $392,882 $239,687 $657,000 $862,000 Expenditures Employee Compensation $309,752 $180,493 $309,653 $254,081 Employee Benefits $156,600 $89,657 $93,440 $61,291 Materials $14,874 $3,573 $21,969 $22,172 Contract Services $187,681 $50,436 $444,888 $354,179 Cost Allocation $263,234 $225,072 $276,391 $167,883 Special Projects $- $6,214 $- $- Contingencies $- $- $11,671 $9,409 Total Expenditures $932,141 $555,445 $1,158,012 $869,015 Fund Balance $25,742 $846,242 $305,797 $368,985 General Fund Costs $565,000 $1,162,000 $806,809 $376,000 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget RECREATION COORDINATOR 2.17 1.70 1.70 0.45 RECREATION MANAGER 0 0 0 0.30 RECREATION SUPERVISOR 0.25 0.15 0.15 0.30 Total 2.42 1.85 1.85 1.05 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Parks and Recreation 378 Sports Center Operations Budget Unit 570-63-621 Sports Center-Sports,Safety and Outdoor Recreation-Sports Center Operations Budget at a Glance 2023 Adopted Budget Total Revenues $2,600,000 Total Expenditures $2,876,082 Fund Balance $(276,082) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 2.5 FTE Program Overview The Cupertino Sports Center offers a variety of health and wellness activities including a full fitness center, and a wide assortment of fitness classes, youth sports classes, and a variety of racquet sports, including tennis, table tennis,pickle ball,and badminton classes,camps,and programs. Service Objectives . Increase memberships,participation in fitness classes,and enrollment in contract camps and classes. . Market programs through social media, the recreation schedule, electronic sign on Stevens Creek Blvd., and the City website. • Collaborate with Public Works to ensure successful implementation of Capital Improvement Projects. . Explore new program offerings. Adopted Budget On June 9, 2022, City Council approved a budget of$2,876,082 for the Sports Center Operations program. This represents a decrease of$26,278(-0.9%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year. The reduction in Cost Allocation expenses is offset by increases in Employee Compensation due to the reorganization of the Department and reallocation of staff time to this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Parks and Recreation 379 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $266,504 $272,807 $351,000 $350,000 Charges for Services $2,099,161 $1,537,387 $2,350,000 $2,250,000 Total Revenues $2,365,665 $1,810,194 $2,701,000 $2,600,000 Expenditures Employee Compensation $363,610 $257,539 $397,428 $420,887 Employee Benefits $139,639 $82,496 $136,835 $126,566 Materials $32,104 $16,493 $46,736 $63,087 Contract Services $1,646,106 $1,288,732 $2,032,418 $2,033,320 Cost Allocation $240,427 $198,719 $236,964 $179,812 Contingencies $- $- $51,979 $52,410 Total Expenditures $2,421,886 $1,843,979 $2,902,360 $2,876,082 Fund Balance $891,779 $626,214 $(201,360) $(276,082) General Fund Costs $948,000 $660,000 $- $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget OFFICE ASSISTANT 1.00 1.00 1.00 1.00 RECREATION COORDINATOR 1.00 1.00 1.00 0.80 RECREATION SUPERVISOR 0.25 0.25 0.45 0.70 Total 2.25 2.25 2.45 2.50 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Parks and Recreation 380 Community Development FY 2022-23 Adopted Budget Community Development 381 This page intentionally left blank. FY 2022-23 Adopted Budget Community Development 382 Department Overview Budget Units Budget Unit Program 2023 Adopted Budget Community Development $1,054,844 100-70-700 Community Development Administration $ 1,054,844 Planning $4,354,482 100-71-701 Current Planning $3,132,994 100-71-702 Mid and Long Term Planning $1,221,488 100-71-704 Annexations $- 100-71-705 Economic Development $- Housing Services $1,901,362 260-72-707 CDBG General Admin $155,589 260-72-709 CDBG Capital/Housing Projects $337,558 260-72-710 CDBG Public Service Grants $61,852 265-72-711 BMR Affordable Housing Fund $1,222,398 100-72-712 Human Service Grants $123,965 Building $4,568,565 100-73-713 General Building $935,194 100-73-714 Building Plan Review $2,116,415 100-73-715 Building Code Enforcement $1,432,502 100-73-718 Muni Code Enforcement $84,454 Code Enforcement $1,246,971 100-74-202 Code Enforcement $1,246,971 Total $13,126,224 FY 2022-23 Adopted Budget Community Development 383 Budget at a Glance 2023 Adopted Budget Total Revenues $13,413,933 Total Expenditures $13,126,224 Fund Balance $6,745,286 General Fund Costs $6,457,577 %Funded by General Fund 49.2% Total Staffing 37.5 FTE Organization Benjamin Fu,Director of Community Development Director of Community Development Housing Planning Management Assistant Director of Manager Manager Analyst Community Development g g Y /Building Official Senior Senior Planner Senior Code Administrative Permit Center Deputy Building Planner(2) (4) Enforcement Assistant(2) Manager Official Officer(2) Associate Code Office Assistant Plan Check Senior Building Planner(4) Ll (2) (2} Engineer(2) Inspector Assistant Permit Building Planner(2) Technician (3) Inspector (4) Permit Technician FY 2022-23 Adopted Budget Community Development 384 Performance Measures Goal: Review and guide development activity to ensure compliance with relevant codes and policies, and alignment with community values to promote and enhance Cupertino's community-wide quality of life. Benefit:Cupertino is a thriving city to live,work,learn and play. FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target Building permit applications shall be plan reviewed within 15 92% 93% 93% 801% business days. Customer/Applicants visiting the Building Permit Counter shall be 93% ** 100%*** 80% assisted within 15 minutes Applicants visiting the Planning Counter shall be assisted within 91% ** 100%*** 50% 15 minutes Building permit applications reviewed/issued over-the- 63% ** ** 75% counter(OTC) Below market-rate rental and 11 14 11 15 per year purchase vacancies filled Housing resources and referrals 109 129 82 100 per year provided Complimentary/courtesy prelim app reviews completed within 4 83% 79% 69% 80% weeks Average number of days to initiate investigation of code 0.21 0.077 0.059 <7 complaints Code enforcement cases resolved 85% °98/0 91/� 80% without issuance of citations Landlord-tenant counseling and dispute resolution cases 28 46 23 100 per year provided Public Outreach Events 4 ** ** 12 per year FY 2022-23 Adopted Budget Community Development 385 *Data provided from July 2019-February 2020 due to the shelter-in-place mandate. **No data due to closure of city hall. ***In-person appointments started July 15, 2021,the counters were temporarily closed in January 10, 2022, due to the surge of the COVID-19 Omicron variant. FY 2022-23 Adopted Budget Community Development 386 Workload Indicators Planning Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Number of preliminary reviews 112 163 73 Number of planning applications received 198 237 136 Number of planning counter inquiries 2,284* ** 168** Housing Services Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Number of housing resources and referrals 109 129 82 Number of BMR rental and ownership 11 14 11 vacancies filled Number of landlord tenant counseling and 28 46 23 dispute cases received Number of annual HUD documents(CAPER, Action Plan,Consolidated Plan,Affirmatively 2 2 1 Furthering Fair Housing)completed Housing and Human Services Grant Funds 9 9 4 inquiries Building Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Number of permits received 2,133 2,364 1,173 Number of inspections requested 19,331 13,374 6,316 Number of building counter inquiries 5,571' ** 320** *Data from July 1,2019-March 13,2020 **No data due to the Shelter in Place order ***In-person appointments started July 15, 2021,the counters were temporarily closed in January 10, 2022, due to the surge of the Omicron variant of Covid-19. FY 2022-23 Adopted Budget Community Development 387 Adopted Budget On June 9, 2022, City Council approved a budget of$13,126,224 for the Community Development department. This represents a decrease of$1,563,714(-10.6%)from the FY 2021-22 Adopted Budget. The increase in Employee Compensation and Benefits is due to the addition of four positions: a Housing Senior Planner, a Planning Senior Planner, an Office Assistant, an Associate Planner, and a Code Enforcement Officer. The decrease in one-time projects offset the increase in staffing. FY 2022-23 Adopted Budget Community Development 388 Adopted Expenditures by Division : . ■ Building Planning ■ Housing Services Code Enforcement Community Development 33.20/0 Department Expenditure History $14.7M $13.1M $11.2M $9.35M 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget FY 2022-23 Adopted Budget Community Development 389 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Taxes $39,000 $197,661 $3,611,855 $8,002,202 Licenses and Permits $4,665,560 $4,034,545 $3,115,000 $3,515,000 Use of Money and Property $2,581 $2,333 $3,300 $3,300 Intergovernmental Revenue $357,527 $559,010 $463,996 $492,181 Charges for Services $1,169,345 $1,677,233 $1,135,000 $1,135,000 Fines and Forfeitures $127,723 $26,998 $225,000 $225,000 Miscellaneous Revenue $62,014 $86,184 $41,250 $41,250 Total Revenues $6,423,750 $6,583,964 $8,595,401 $13,413,933 Expenditures Employee Compensation $3,520,711 $3,727,517 $4,647,828 $4,911,221 Employee Benefits $1,498,384 $1,609,662 $2,136,332 $2,410,242 Materials $696,404 $1,195,991 $1,029,806 $1,015,670 Contract Services $525,498 $669,350 $893,725 $654,665 Cost Allocation $2,440,524 $3,387,204 $4,214,034 $3,891,843 Special Projects $664,235 $602,168 $1,734,100 $225,000 Contingencies $- $293 $34,113 $17,583 Total Expenditures $9,345,756 $11,192,185 $14,689,938 $13,126,224 Fund Balance $(485,463) $(532,235) $2,261,047 $6,745,286 General Fund Costs $2,436,544 $4,075,983 $8,355,584 $6,457,577 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 390 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 1.00 1.75 1.75 1.75 ASSISTANT PLANNER 2.00 2.00 2.00 2.00 ASSIST DIR OF COMMITY DEV 1.00 1.00 1.00 1.00 ASSOCIATE PLANNER 3.00 3.00 3.00 5.00 BUILDING INSPECTOR 3.92 3.92 3.92 3.92 CODE ENFORCEMENT OFFICER 0 1.00 1.00 2.00 DEPUTY BOARD CLERK 0.75 0 0 0 DEPUTY BUILDING OFFICIAL 1.00 1.00 1.00 1.00 DIRECTOR OF COMM 0.94 0.94 0.94 0.94 DEVELOPMENT ECONOMIC DEVELOPMENT 0 0 1.00 0 MANAGER MANAGEMENT ANALYST 1.00 1.00 1.00 1.00 OFFICE ASSISTANT 1.00 1.00 1.00 2.00 PERMIT CENTER MANAGER 1.00 1.00 1.00 1.00 PERMIT TECHNICIAN 3.00 3.00 4.00 4.00 PLAN CHECK ENGINEER 2.00 1.00 2.00 2.00 PLANNING MANAGER 1.90 1.90 1.90 1.90 SENIOR PLANNER 1.90 3.00 4.00 5.00 SR BUILDING INSPECTOR 0.98 0.98 0.98 0.98 SR CODE ENFORCEMENT OFFICER 3.00 2.00 2.00 2.00 Total 29.39 29.49 33.49 37.49 FY 2022-23 Adopted Budget Community Development 391 Community Development Administration Budget Unit 100-70-700 General Fund-Community Development-Community Development Administration Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $ 1,054,844 Fund Balance $- General Fund Costs $1,054,844 %Funded by General Fund 100.0% Total Staffing 0.5 FTE Program Overview The Community Development Administration program manages general office and oversight functions for the Community Development Department. Service Objectives • Coordinate and direct general office affairs related to community development functions. • Manage professional and administrative staff. • Prepare and implement the department budget. • Coordinate as necessary with other departments in the City. • Review and evaluate City and department goals and objectives. Adopted Budget On June 9, 2022, City Council approved a budget of $1,054,844 for the Community Development Administration program.This represents a decrease of$68,646(-6.1%)from the FY 2021-22 Adopted Budget. This decrease is mainly due to a reduction in cost allocation expenses. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Community Development 392 Special Project Appropriation Revenue Funding Source Description Strategic Goal City Work Program:Create Homeless Jobs a jobs program $200,000 $200,000 General Fund Housing Program for up to 2 individuals for 6 months Total $200,000 $200,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Miscellaneous Revenue $180 $ - $- $- Total Revenues $180 $- $- $- Expenditures Employee Compensation $98,923 $89,672 $101,876 $106,672 Employee Benefits $32,218 $34,440 $39,243 $40,237 Materials $7,719 $1,198 $23,726 $24,629 Contract Services $66,498 $119,268 $103,380 $107,308 Cost Allocation $454,929 $449,941 $652,087 $572,700 Special Projects $- $- $200,000 $200,000 Contingencies $- $- $3,178 $3,298 Total Expenditures $660,287 $694,519 $1,123,490 $1,054,844 Fund Balance $- $- $- $- General Fund Costs $660,108 $694,519 $1,123,490 $1,054,844 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 393 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget DIRECTOR OF COMM 0.30 0.30 0.30 0.30 DEVELOPMENT MANAGEMENT ANALYST 0.20 0.20 0.20 0.20 Total 0.50 0.50 0.50 0.50 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Community Development 394 Current Planning Budget Unit 100-71-701 General Fund-Planning-Current Planning Budget at a Glance 2023 Adopted Budget Total Revenues $1,037,500 Total Expenditures $3,132,994 Fund Balance $- General Fund Costs $2,095,494 %Funded by General Fund 66.9% Total Staffing 10.2 FTE Program Overview The Current Planning program serves to review projects and implement City ordinances, land use plans and the General Plan goals and objectives through the planning review and building plan check processes. Service Objectives • Maintain a high level of customer service. . Provide assistance at the public counter,over the telephone,or via email. . Implement the City's General Plan,land use plans and Zoning Ordinance. • Evaluate Planning applications for consistency with City ordinance, General Plan goals, and applicable State and Federal regulations. • Coordinate internal review of Planning applications with other City departments. • Conduct environmental review of projects in compliance with California Environmental Quality Act (CEQA)and applicable regional,State and Federal regulations. • Provide technical analysis and recommendations to the Council, Planning Commission and Design Review Committee. . Review building permits to ensure implementation of zoning requirements, environmental mitigation measures and planning entitlement conditions of approval. Adopted Budget On June 9, 2022, City Council approved a budget of $3,132,994 for the Current Planning program. This represents a decrease of$448,588(-12.5%)from the FY 2021-22 Adopted Budget. The decrease is due to a one-time request of$500,000 for Special Projects which was budgeted in FY 2021-22 for the Vallco SB35 project's legal fees and contracts. Any balance will be carried over into FY 2022-23. The decrease in one-time projects is offset by the addition of portions of four positions: a Planning Senior Planner(0.75),a Housing Senior Planner(0.10), an Associate Planner(0.25),and an Office Assistant(0.50). FY 2022-23 Adopted Budget Community Development 395 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $1,129,604 $1,565,258 $1,000,000 $1,000,000 Miscellaneous Revenue $57,522 $65,774 $37,500 $37,500 Total Revenues $1,187,126 $1,631,032 $1,037,500 $1,037,500 Expenditures Employee Compensation $860,832 $945,545 $1,157,235 $1,302,876 Employee Benefits $337,398 $370,481 $498,374 $617,475 Materials $10,225 $4,848 $30,910 $32,086 Contract Services $9,983 $16,063 $1,464 $1,464 Cost Allocation $731,686 $1,139,030 $1,392,790 $1,178,254 Special Projects $306,761 $402,872 $500,000 $- Contingencies $- $- $809 $839 Total Expenditures $2,256,885 $2,878,839 $3,581,582 $3,132,994 Fund Balance $- $- $- $- General Fund Costs $1,069,758 $1,247,807 $2,544,082 $2,095,494 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 396 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 0 0.60 0.60 0.60 ASSISTANT PLANNER 2.00 2.00 2.00 2.00 ASSOCIATE PLANNER 2.40 2.40 2.40 3.25 DEPUTY BOARD CLERK 0.60 0 0 0 DIRECTOR OF COMM 0.28 0.28 0.28 0.28 DEVELOPMENT MANAGEMENT ANALYST 0.40 0.40 0.40 0.40 OFFICE ASSISTANT 0 0 0 0.50 PERMIT TECHNICIAN 0 0 1.00 1.00 PLANNING MANAGER 0.50 0.50 0.50 0.50 SENIOR PLANNER 1.25 1.40 1.40 1.65 Total 7.43 7.58 8.58 10.18 The increase in staffing is due to the addition of a Planning Senior Planner (0.75), Housing Senior Planner (0.10),Associate Planner(0.25),and Office Assistant(0.50).Positions were also reallocated in FY 2021-22. Planning Division staff respond to general public inquiries and review planning applications and building permits received from the community. On an annual average, the division receives over 2,000 inquiries, not including follow-ups. The Planning Division has also seen an approximately 30% increase of planning applications received from FY 2020 to FY 2021. It is anticipated that FY 2022 will conclude with an additional 10% increase in planning applications received. Additionally, the steady increase of building permits received from the last two fiscal years (10%increase from FY 2020 to FY 2021) is also projected to continue for FY 2022. Further, the CWP includes many important items that require significant resources in order to commence and complete. The Planning Division also supports the Planning Commission, three city committees, and any subcommittees formed by the City Council.The positions will help with project management and the increased demand and volume of applications/permits. A planner performs difficult and complex environmental review work pursuant to California Environmental Quality Act (CEQA) and participates in all phases of environmental review; assists in planning and coordinating complex activities related to current and long-range planning; serves as project manager for complex zoning and planning administration, special projects, and policy development; completes technical assessments and prepares written project analyses; performs community outreach and education; provides technical and functional direction to planning staff;and performs related work as required. Community Development Department (CDD) consists of four divisions: Building, Planning, Housing, and Code Enforcement.Within each division there are also teams and functions, such as Inspections,Permit Center, Plan Review, Long-Range Planning, Current Planning, CDBG Programs,Housing Funds and Grants, and BMR Administration. CDD also supports two city commissions, three committees, and any development related subcommittees as appropriately formed to support the goals and vision of the City Council. The Office Assistant position will provide more efficient administrative support and coverage throughout the divisions and functions. FY 2022-23 Adopted Budget Community Development 397 The Office Assistant will provide administrative support to Planning and Housing divisions. Tasks include but are not limited to: answering telephones and providing accurate information and answers to general questions, processing invoices for payment, and performing a variety of support duties related to the work unit to assist staff in routine office activities. FY 2022-23 Adopted Budget Community Development 398 Mid and Long Term Planning Budget Unit 100-71-702 General Fund-Planning-Mid and Long Term Planning Budget at a Glance 2023 Adopted Budget Total Revenues $138,750 Total Expenditures $1,221,488 Fund Balance $- General Fund Costs $1,082,738 %Funded by General Fund 88.6% Total Staffing 4.5 FTE Program Overview The Mid- and Long Term Planning program assists the community in preparing, reviewing and amending documents including the General Plan,Specific Plans,Conceptual Plans,and the Municipal Code,including the Zoning Ordinance. Additionally, the program anticipates and evaluates trends, and develops strategies and plans to help the City address change. Service Objectives • Review and amend the City's General Plan, Housing Element, and Municipal Code, including the Zoning Ordinance,Specific,Conceptual and Master Plans. • Ensure City processes and regulations are in compliance with State and Federal regulations, including the California Environmental Quality Act(CEQA). • Review and implement policies in the General Plan, Housing Element, Zoning Ordinance, Specific, Conceptual and Master Plans. • Coordinate with various local,regional,State and Federal agencies on projects. • Facilitate the planning and implementation of the City Council's annual community development goals and objectives. Adopted Budget On June 9, 2022, City Council approved a budget of$1,221,488 for the Mid and Long Term Planning program. This represents a decrease of$500,381 (-29.1%)from the FY 2021-22 Adopted Budget. This decrease is mainly due to a reduction in special projects and is offset by increased salary and benefits due to the addition of a Senior Planner(0.25)and Associate Planner(0.75). FY 2022-23 Adopted Budget Community Development 399 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $17,930 $88,474 $135,000 $135,000 Miscellaneous Revenue $- $12,691 $3,750 $3,750 Total Revenues $17,930 $101,165 $138,750 $138,750 Expenditures Employee Compensation $333,541 $384,105 $529,702 $608,025 Employee Benefits $125,704 $145,049 $223,676 $274,043 Materials $2,307 $11,201 $14,260 $14,802 Contract Services $8,911 $1,339 $7,500 $7,500 Cost Allocation $170,561 $264,123 $317,062 $316,560 Special Projects $270,101 $90,191 $620,000 $- Contingencies $- $293 $9,669 $558 Total Expenditures $911,125 $896,301 $1,721,869 $1,221,488 Fund Balance $- $- $- $- General Fund Costs $893,195 $795,136 $1,583,119 $1,082,738 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 400 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 0 0.15 0.15 0.15 ASSOCIATE PLANNER 0.60 0.60 0.60 1.75 DEPUTY BOARD CLERK 0.15 0 0 0 DIRECTOR OF COMM 0.24 0.24 0.24 0.24 DEVELOPMENT MANAGEMENT ANALYST 0.20 0.20 0.20 0.20 PLANNING MANAGER 0.60 0.60 0.60 0.60 SENIOR PLANNER 0.65 0.70 1.70 1.55 Total 2.44 2.49 3.49 4.49 The increase in staffing is due to the addition of a Senior Planner (0.25) and Associate Planner (0.75). Positions were also reallocated in FY 2021-22. Planning Division staff respond to general public inquiries and review planning applications and building permits received from the community. On an annual average, the division receives over 2,000 inquiries, not including follow-ups. The Planning Division has also seen an approximately 30% increase of planning applications received from FY 2020 to FY 2021. It is anticipated that FY 2022 will conclude with an additional 10% increase in planning applications received. Additionally, the steady increase of building permits received from the last two fiscal years (10%increase from FY 2020 to FY 2021) is also projected to continue for FY 2022. Further, the CWP includes many important items that require significant resources in order to commence and complete. The Planning Division also supports the Planning Commission, three city committees, and any subcommittees formed by the City Council.The positions will help with project management and the increased demand and volume of applications/permits. A planner performs difficult and complex environmental review work pursuant to California Environmental Quality Act (CEQA) and participates in all phases of environmental review; assists in planning and coordinating complex activities related to current and long-range planning; serves as project manager for complex zoning and planning administration, special projects, and policy development; completes technical assessments and prepares written project analyses; performs community outreach and education; provides technical and functional direction to planning staff;and performs related work as required. FY 2022-23 Adopted Budget Community Development 401 Annexations Budget Unit 100-71-704 General Fund-Planning-Annexations Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $- Fund Balance $- General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview The Annexations program was created in FY 2014-15 to account for annexations of property from outside city limits. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is$0,this program will be removed. Service Objectives . Identify and process annexations Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 402 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Cost Allocation $- $727 $- $- Total Expenditures $- $727 $- $- Fund Balance $- $- $- $- General Fund Costs $- $727 $- $- Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Community Development 403 Economic Development Budget Unit 100-71-705 General Fund-Planning-Economic Development Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $- Fund Balance $- General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 0.0 FTE Program Overview In FY 2021-22, the Economic Development program was transferred to the City Manager's Office after budget adoption and reported to Council in the City's first quarter financial report. The Economic Development program specifically targets business retention, expansion, and attraction with a focus on small business development, in order to support the City's financial stability. Information for this budget can be found in the Administration Department. Service Objectives . Provide assistance and support to businesses to enable job creation, new business formation, private investment,and industry evolution. • Conduct outreach to existing small businesses to create strong working relationships. • Collaborate with internal city team members to keep the needs of businesses in the forefront when reviewing applications and projects. • Partner with local business associations, agencies, and organizations to create a strong and cohesive network offering business support and assistance. • Provide the public with current data and information easily accessible online or in printed format. . Assist with policy formation to align with business and community goals. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 404 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Materials $- $- $53,848 $- Contract Services $- $- $243,000 $- Cost Allocation $- $- $13,227 $- Special Projects $- $- $14,100 $- Contingencies $- $- $7,899 $- Total Expenditures $- $- $332,074 $- Fund Balance $- $- $- $- General Fund Costs $- $- $332,074 $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ECONOMIC DEVELOPMENT 0 0 1.00 0 MANAGER Total 0 0 1.00 0 In FY 2021-22,the Economic Development program was transferred to the City Manager's Office. FY 2022-23 Adopted Budget Community Development 405 CDBG General Admin Budget Unit 260-72-707 CDBG-Housing Services-CDBG General Admin Budget at a Glance 2023 Adopted Budget Total Revenues $88,356 Total Expenditures $155,589 Fund Balance $(67,233) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 0.6 FTE Program Overview The General Administration of the Community Development Block Grant(CDBG)federal entitlement program is reserved for program administration costs to cover salary and benefits of staff who operate the CDBG program. The CDBG program is a federal entitlement program which serves low- and moderate- income Cupertino residents. CDBG program administration costs represent 20% of the City's annual federal CDBG allocation plus prior year program income. Service Objectives • Prepare and submit an Annual Plan to the US Department of Housing and Urban Development(HUD). • Prepare and submit annual Consolidated Annual Performance and Evaluation Report(CAPER)to HUD. • Prepare and submit a five-year Consolidated Plan to HUD. • Meet quarterly with Santa Clara County CDBG Coordinators. • Conduct four-eight public hearings per year to allocate CDBG funding, review Annual Plan, CAPER, and Consolidated Plan. • Provide technical assistance to grantees and applicants. . Monitor grantees for compliance with federal regulations. Adopted Budget On June 9, 2022, City Council approved a budget of $155,589 for the CDBG General Admin program. This represents an increase of$31,213(25.1%)from the FY 2021-22 Adopted Budget. The increase is due to employee compensation and benefits due to an increase in staffing. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 406 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $75,442 $270,062 $79,439 $88,356 Total Revenues $75,442 $270,062 $79,439 $88,356 Expenditures Employee Compensation $57,144 $70,332 $84,330 $104,594 Employee Benefits $27,543 $33,073 $40,046 $50,995 Materials $- $440,223 $- $_ Total Expenditures $84,687 $543,628 $124,376 $155,589 Fund Balance $(9,245) $(273,566) $ (44,937) $(67,233) General Fund Costs $- $- $- $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget PLANNING MANAGER 0.39 0.39 0.39 0.39 SENIOR PLANNER 0 0.10 0.10 0.20 Total 0.39 0.49 0.49 0.59 The division is requesting the addition of a Senior Planner (0.10). In addition to responding to public inquiries on housing related topics, the Housing Division is responsible for the administration of the City of Cupertino's federally funded Community Development Block Grant (CDBG) Program, Below Market Rate (BMR) Affordable Housing Fund (AHF), General Fund Human Service Grants (HSG), implementation, reporting, and monitoring of grants received, and other contracted affordable housing programs and services. The Housing Division also supports the Housing Commission.With the increase awareness and support for the low-income and the unhoused communities,there is greater demand for projects and tasks.There are also increased process and requirements for many of the state and federal regulations and reporting. The City Work Program (CWP) also require significant resources to complete.Further,the number of counseling and disputes has increased by approximately 60% from FY 2020 to FY 2021, while the number of housing resources and referrals have increased by approximately 20%in the same period. FY 2022 projects an additional increase in both categories. The requested position will alleviate the increased demand and volume of work, and continue to provide efficient project management and coordination. Tasks include but are not limited to: Ongoing and regular duties of the Housing Division include the Housing Commission, management of the City's Housing and Human Services Grants Program (capital housing projects and public services) and the Community Development Block Grant, management of the City's Below Market Rate Housing Program, and implementation of the Housing Element. FY 2022-23 Adopted Budget Community Development 407 CDBG Capital/Housing Projects Budget Unit 260-72-709 CDBG-Housing Services-CDBG Capital/Housing Projects Budget at a Glance 2023 Adopted Budget Total Revenues $340,858 Total Expenditures $337,558 Fund Balance $3,300 General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview This portion of the Community Development Block Grant (CDBG) federal entitlement program is reserved for grants and loans to non-profit developers and agencies for eligible activities such as public improvements, property acquisition for affordable housing, rehabilitation of affordable units, and development of affordable housing. CDBG Capital/Housing costs represent 65% of the City's annual federal CDBG allocation plus prior year program income. Service Objectives . Issue Requests for Proposals(RFPs)on an annual basis for Capital/Housing Projects. • Review applications and make funding recommendations to Housing Commission and City Council. . On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each grantee. • Review quarterly reports and reimbursements requests from agencies and enter data into HUD IDIS program. • Coordinate entitlement process with the Planning Division for affordable development projects. • Monitor project progress of grantees through the construction phase. • Coordinate CEQA/NEPA environmental review processes for all affordable developments. • Coordinate preparation of all grant and loan agreements, Deeds of Trust, Promissory Notes, and Regulatory Agreements. . On an annual basis,prepare grant agreements or amendments for each grantee. • Provide technical assistance to grantees and applicants. . Monitor grantees for compliance with federal regulations. Adopted Budget On June 9, 2022, City Council approved a budget of$337,558 for the CDBG Capital/Housing Projects program. This represents an increase of$16,074(5.0%)from the FY 2021-22 Adopted Budget. FY 2022-23 Adopted Budget Community Development 408 When the budget was being developed, the City had not yet received notice from the US Department of Housing and Urban Development(HUD) for its FY 2022-23 CDBG funding allocation.The estimate is expected to be updated when more information is known. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $2,581 $2,333 $3,300 $3,300 Intergovernmental Revenue $227,111 $229,369 $321,445 $337,558 Total Revenues $229,692 $231,702 $324,745 $340,858 Expenditures Materials $227,111 $229,369 $321,484 $337,558 Total Expenditures $227,111 $229,369 $321,484 $337,558 Fund Balance $2,581 $2,333 $3,261 $3,300 General Fund Costs $- $- $- $- Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Community Development 409 CDBG Public Service Grants Budget Unit 260-72-710 CDBG-Housing Services-CDBG Public Service Grants Budget at a Glance 2023 Adopted Budget Total Revenues $66,267 Total Expenditures $61,852 Fund Balance $4,415 General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview This portion of the Community Development Block Grant (CDBG) federal entitlement program is reserved for grants to nonprofit agencies serving low- and moderate-income Cupertino residents. The agencies provide services such as food assistance, job training, emergency housing, legal assistance, etc. CDBG Public Services costs represent 15%of the City's annual federal CDBG allocation plus prior year program income. Service Objectives . Issue Requests for Proposals(RFPs)on a bi-or tri-annual basis for public services programs. • Review applications and make funding recommendations to Housing Commission and City Council. • On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each grantee. • Review quarterly reports and reimbursements requests from agencies and enter data into HUD IDIS program. • On an annual basis,prepare grant agreements or amendments for each grantee. • Provide technical assistance to grantees and applicants. . Monitor grantees for compliance with federal regulations. Adopted Budget On June 9, 2022, City Council approved a budget of$61,852 for the CDBG Public Service Grants program. This represents a decrease of$1,260(-2.0%)from the FY 2021-22 Adopted Budget. When the budget was being developed, the City had not yet received notice from the US Department of Housing and Urban Development(HUD) for its FY 2022-23 CDBG funding allocation.The estimate is expected to be updated when more information is known. FY 2022-23 Adopted Budget Community Development 410 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $54,974 $59,579 $63,112 $66,267 Total Revenues $54,974 $59,579 $63,112 $66,267 Expenditures Materials $54,974 $59,613 $63,112 $61,852 Total Expenditures $54,974 $59,613 $63,112 $61,852 Fund Balance $- $(34) $- $4,415 General Fund Costs $- $- Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Community Development 411 BMR Affordable Housing Fund Budget Unit 265-72-711 BMR Housing-Housing Services-BMR Affordable Housing Fund Budget at a Glance 2023 Adopted Budget Total Revenues $8,002,202 Total Expenditures $1,222,398 Fund Balance $6,804,804 General Fund Costs $25,000 %Funded by General Fund 2.0% Total Staffing 2.5 FTE Program Overview This program covers administration of the Below Market Rate(BMR)Housing program. Service Objectives • Contract with BMR Program Administrator annually for services relating to rental and ownership units. • Prepare and monitor agreement, process monthly reimbursement requests, and provide technical assistance to BMR Program Administrator. • Review and maintain the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units(BMR Manual). • Review and maintain the BMR Housing Mitigation Program Procedural Manual (Housing Mitigation Manual) Adopted Budget On June 9, 2022, City Council approved a budget of $1,222,398 for the BMR Affordable Housing Fund program.This represents a decrease of$86,734(-6.6%)from the FY 2021-22 Adopted Budget. This decrease is primarily due to a reduction in special projects carried over from last fiscal year and any balance will be carried over into FY 2022-23. This is offset by an increase in salary and benefits due to the addition of an Office Assistant(0.50)and Senior Planner(0.80). The increase in the housing mitigation revenue is due to the office project at 19191 Vallco Parkway. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Community Development 412 Special Project Appropriation Revenue Funding Source Description Strategic Goal City Work Program: Housing Continue Programs for De participation in Anza College $25,000 $25,000 General Fund De Anza Housing Students College's student housing assistance program. Total $25,000 $25,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Taxes $39,000 $197,661 $3,611,855 $8,002,202 Charges for Services $1,442 $7,270 $- $- Miscellaneous Revenue $1,515 $- $- $- Total Revenues $41,957 $204,931 $3,611,855 $8,002,202 Expenditures Employee Compensation $58,884 $108,157 $170,709 $320,797 Employee Benefits $28,396 $48,043 $80,982 $164,609 Materials $257,581 $310,416 $330,371 $341,026 Contract Services $174,121 $69,130 $226,588 $226,600 Cost Allocation $28 $48,843 $100,482 $144,366 Special Projects $1,746 $81,311 $400,000 $25,000 Total Expenditures $520,756 $665,900 $1,309,132 $1,222,398 Fund Balance $(478,799) $(260,968) $2,302,723 $6,804,804 General Fund Costs $- $200,000 $- $25,000 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 413 Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget OFFICE ASSISTANT 0 0 0 0.50 PLANNING MANAGER 0.41 0.41 0.41 0.41 SENIOR PLANNER 0 0.80 0.80 1.60 Total 0.41 1.21 1.21 2.51 The increase in staffing is due to the addition of an Office Assistant (0.50) who will provide administrative support to Planning and Housing divisions and a Senior Planner(0.80). In addition to responding to public inquiries on housing related topics,the Housing Division is responsible for the administration of the City of Cupertino's federally funded Community Development Block Grant (CDBG) Program, Below Market Rate (BMR) Affordable Housing Fund (AHF), General Fund Human Service Grants (HSG), implementation, reporting, and monitoring of grants received, and other contracted affordable housing programs and services. The Housing Division also supports the Housing Commission. With the increase awareness and support for the low-income and the unhoused communities, there is greater demand for projects and tasks. There are also increased process and requirements for many of the state and federal regulations and reporting. The City Work Program (CWP) also require significant resources to complete. Further, the number of counseling and disputes has increased by approximately 60%from FY 2020 to FY 2021, while the number of housing resources and referrals have increased by approximately 20%in the same period. FY 2022 projects an additional increase in both categories. The requested position will alleviate the increased demand and volume of work,and continue to provide efficient project management and coordination. Community Development Department (CDD) consists of four divisions: Building, Planning, Housing, and Code Enforcement.Within each division there are also teams and functions, such as Inspections,Permit Center, Plan Review, Long-Range Planning, Current Planning, CDBG Programs,Housing Funds and Grants, and BMR Administration. CDD also supports two city commissions, three committees, and any development related subcommittees as appropriately formed to support the goals and vision of the City Council. The requested Office Assistant position will provide more efficient administrative support and coverage throughout the divisions and functions. FY 2022-23 Adopted Budget Community Development 414 Human Service Grants Budget Unit 100-72-712 General Fund-Housing Services-Human Service Grants Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $ 123,965 Fund Balance $- General Fund Costs $123,965 %Funded by General Fund 100.0% Total Staffing FTE Program Overview The City of Cupertino sets aside $100,000 from its General Fund for non-profit agencies providing services to low- and moderate-income Cupertino residents. Eligible programs include senior services, homeless services, and others that serve low-and moderate-income residents. Service Objectives • Issue Requests for Proposals(RFPs)on a bi-or tri-annual basis for public services programs. • Review applications and make funding recommendations to Housing Commission and City Council. • On a quarterly basis, monitor grants, disburse funding, and collect demographic information from each grantee. • Review quarterly reports and reimbursements requests from agencies. • On an annual basis,prepare grant agreements or amendments for each grantee. • Provide technical assistance to grantees and applicants. . Monitor grantees for compliance. Adopted Budget On June 9, 2022, City Council approved a budget of $123,965 for the Human Service Grants program. This represents a decrease of$97(-0.1%)from the FY 2021-22 Adopted Budget. The decrease is due to a decrease in cost allocation. The budget is relatively unchanged from the last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 415 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Materials $83,600 $113,112 $115,780 $ 115,780 Cost Allocation $2,840 $4,431 $5,387 $5,290 Contingencies $- $- $2,895 $2,895 Total Expenditures $86,440 $117,543 $124,062 $123,965 Fund Balance $- $- $- $- General Fund Costs $86,440 $117,543 $124,062 $123,965 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Community Development 416 General Building Budget Unit 100-73-713 General Fund-Building-General Building Budget at a Glance 2023 Adopted Budget Total Revenues $315,000 Total Expenditures $935,194 Fund Balance $- General Fund Costs $620,194 %Funded by General Fund 66.3% Total Staffing 3.1 FTE Program Overview The General Building program establishes the minimum requirements to safeguard the public health, safety and general welfare through structural strength, means of egress facilities, stability, accessibility, sanitation, adequate lighting and ventilation and energy conservation; safety to life and property from fire and other hazards attributed to the built environment; and to provide safety to fire fighters and emergency responders during emergency operations. Service Objectives • Provide efficient and friendly service that will assist customers with their building permit goals and objectives. • Continue to streamline the workflow process to provide efficient and friendly customer service. • Work proactively to enhance the public interface and information systems. • Continue efforts to create a more effective records management system and land use data system using Geographic Information System(GIS). . Increase staff knowledge through in-house training,meetings,and seminars Adopted Budget On June 9,2022,City Council approved a budget of$935,194 for the General Building program.This represents a decrease of$84,557(-8.3%)from the FY 2021-22 Adopted Budget. The decrease is due to a decrease in cost allocation. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 417 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Licenses and Permits $277,460 $308,976 $315,000 $315,000 Total Revenues $277,460 $308,976 $315,000 $315,000 Expenditures Employee Compensation $390,103 $452,234 $465,040 $429,712 Employee Benefits $161,280 $187,633 $210,336 $212,488 Materials $8,745 $3,196 $17,603 $18,273 Cost Allocation $258,746 $290,487 $326,332 $274,264 Special Projects $16,837 $- $- $- Contingencies $- $- $440 $457 Total Expenditures $835,711 $933,550 $1,019,751 $935,194 Fund Balance $- $- $- $- General Fund Costs $558,252 $624,574 $704,751 $620,194 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 0.50 0.50 0.50 0.50 ASSIST DIR OF COMMITY DEV 0.60 0.60 0.60 0.60 DEPUTY BUILDING OFFICIAL 0.20 0.20 0.20 0.20 DIRECTOR OF COMM 0.12 0.12 0.12 0.12 DEVELOPMENT MANAGEMENT ANALYST 0.20 0.20 0.20 0.20 OFFICE ASSISTANT 0.50 0.50 0.50 0.50 PERMIT CENTER MANAGER 0.20 0.20 0.20 0.20 PERMIT TECHNICIAN 0.60 0.60 0.60 0.60 SR BUILDING INSPECTOR 0.20 0.20 0.20 0.20 Total 3.12 3.12 3.12 3.12 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Community Development 418 Building Plan Review Budget Unit 100-73-714 General Fund-Building-Building Plan Review Budget at a Glance 2023 Adopted Budget Total Revenues $1,500,000 Total Expenditures $2,116,415 Fund Balance $- General Fund Costs $616,415 %Funded by General Fund 29.1% Total Staffing 6.7 FTE Program Overview The Building Plan Review program is responsible for the timely and accurate review and approval of construction drawings for all residential, commercial and industrial permit applications for buildings and structures to ensure the proposed design meets or exceeds the minimum life safety, plumbing, mechanical, electrical, accessibility, energy and structural safety standards of the California Building Code and all governing local amendments. Service Objectives • Provide a streamlined building plan review system that will ensure plans comply with all applicable state and local codes and ordinances. • Continue to streamline the internal application processing system and permit review process. • Confer with design professionals on project application and pre-application meetings. • Provide general code information for property owners,design professionals,developers,contractors and the general public. • Assist building inspectors in difficult or unusual code interpretation as it applies to various buildings and structures. . Assist in training of building inspectors and permit technicians in conducting residential and minor commercial plan review. Adopted Budget On June 9, 2022, City Council approved a budget of $2,116,415 for the Building Plan Review program. This represents a decrease of$82,156(-3.7%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year.The decrease in compensation and benefits is due to a change in staff. FY 2022-23 Adopted Budget Community Development 419 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Licenses and Permits $2,689,605 $1,528,688 $1,300,000 $1,500,000 Charges for Services $15,287 $11,463 $- $- Miscellaneous Revenue $2,276 $7,719 $- $- Total Revenues $2,707,168 $1,547,870 $1,300,000 $1,500,000 Expenditures Employee Compensation $704,699 $716,267 $1,027,832 $892,976 Employee Benefits $324,457 $343,121 $517,937 $461,112 Materials $10,454 $2,968 $17,455 $26,896 Contract Services $985 $179,510 $- $- Cost Allocation $382,304 $482,766 $634,911 $734,759 Special Projects $49,149 $25,700 $- $- Contingencies $- $- $436 $672 Total Expenditures $1,472,048 $1,750,332 $2,198,571 $2,116,415 Fund Balance $- $- $- $- General Fund Costs $ (1,235,121) $202,461 $898,571 $616,415 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ADMINISTRATIVE ASSISTANT 0.25 0.25 0.25 0.25 ASSIST DIR OF COMMITY DEV 0.20 0.20 0.20 0.20 DEPUTY BUILDING OFFICIAL 0.80 0.80 0.80 0.80 OFFICE ASSISTANT 0.25 0.25 0.25 0.25 PERMIT CENTER MANAGER 0.80 0.80 0.80 0.80 PERMIT TECHNICIAN 2.40 2.40 2.40 2.40 PLAN CHECK ENGINEER 2.00 1.00 2.00 2.00 Total 6.70 5.70 6.70 6.70 FY 2022-23 Adopted Budget Community Development 420 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Community Development 421 Building Code Enforcement Budget Unit 100-73-715 General Fund-Building-Building Code Enforcement Budget at a Glance 2023 Adopted Budget Total Revenues $1,700,000 Total Expenditures $1,432,502 Fund Balance $- General Fund Costs $(267,498) %Funded by General Fund -18.7% Total Staffing 5.2 FTE Program Overview The Building Inspection program is established to enforce certain minimum standards pursuant to the California Building Code and all local amendments for all new and existing buildings and structures within the City of Cupertino jurisdiction. These minimum standards include public safety, health and general welfare through structural strength, stability, sanitation, adequate light and ventilation, and safety to life and property from fire, hurricane, and other hazards attributed to the built environment. These include alteration, repair, removal, demolition, use, and occupancy of buildings, structures or premises. The Building Inspections Division also regulates the installation and maintenance of all electrical, gas, mechanical and plumbing systems, which may be referred to as service systems. The program also responds to stormwater pollution protection, emergency situations and complaints of unsafe structures, work without permits, and prepares Notices of Violation as necessary. Unabated cases are referred to the Code Enforcement Division for further action. Service Objectives . Build and maintain a positive working relationship with co-workers, other city employees and the general public using principles of quality customer service. . Build and maintain a partnership with property owners, developers, and contractors to help our customers meet their building occupancy goals. • Perform building inspections within 48 hours of receiving the request. . Consistently and accurately document non-complying code issues to ensure proper and safe installation of routine and complex building systems. • Ensure that minimum building code safety requirements are met in all phases of construction for structural,electrical,plumbing,mechanical and accessibility installations. • Educate community members about life and safety inspection issues as they occur before and during the construction process. • Work with owners,developers,and contractors to implement principles of green building as required in the CALGreen Building Code and Cupertino green building requirements. FY 2022-23 Adopted Budget Community Development 422 Adopted Budget On June 9, 2022, City Council approved a budget of $1,432,502 for the Building Code Enforcement program. This represents a decrease of$48,923(-3.3%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from the last fiscal year.The decrease is due to a decrease in cost allocation. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Licenses and Permits $1,698,495 $2,196,881 $1,500,000 $1,700,000 Total Revenues $1,698,495 $2,196,881 $1,500,000 $1,700,000 Expenditures Employee Compensation $614,038 $577,025 $675,434 $673,616 Employee Benefits $280,247 $272,936 $326,593 $341,524 Materials $22,485 $13,423 $22,867 $23,682 Contract Services $6,659 $- $- $- Cost Allocation $277,818 $395,969 $455,997 $393,088 Special Projects $19,641 $2,094 $- $- Contingencies $- $- $534 $592 Total Expenditures $1,220,888 $1,261,447 $1,481,425 $1,432,502 Fund Balance $- $- $- $- General Fund Costs $(477,606) $ (935,435) $ (18,575) $(267,498) Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 423 Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget ADMINISTRATIVE ASSISTANT 0.25 0.25 0.25 0.25 ASSIST DIR OF COMMITY DEV 0.20 0.20 0.20 0.20 BUILDING INSPECTOR 3.72 3.72 3.72 3.72 OFFICE ASSISTANT 0.25 0.25 0.25 0.25 SR BUILDING INSPECTOR 0.73 0.73 0.73 0.73 Total 5.15 5.15 5.15 5.15 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Community Development 424 Muni Code Enforcement Budget Unit 100-73-718 General Fund-Building-Muni Code Enforcement Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $84,454 Fund Balance $- General Fund Costs $84,454 %Funded by General Fund 100.0% Total Staffing 0.3 FTE Program Overview The Community Development Code Enforcement program provides enforcement of various provisions of the municipal code relating to nonconforming land use and building code compliance. These activities include building without permits, unpermitted removal of protected trees, nonconforming accessory structures, various use permit violations, private residential fence height/setback violations, and nonconforming signs. Assistance is provided to Planning and Building Division staff in the resolution of different code violations and land use concerns,which are contrary to the municipal code. Service Objectives • Respond to citizen,City department,or outside agency referrals within 48 hours. • Provide services with an emphasis on community education and customer service. . Enforce the codes in a fair,equitable,and objective manner. Adopted Budget On June 9, 2022, City Council approved a budget of $84,454 for the Muni Code Enforcement program. This represents a decrease of$2,164(-2.5%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from the last fiscal year.The decrease is due to a decrease in cost allocation. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 425 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $30,013 $27,958 $32,750 $33,129 Employee Benefits $13,691 $13,182 $15,815 $16,438 Materials $1,084 $(34) $80 $80 Cost Allocation $56,117 $36,878 $37,973 $34,805 Contingencies $- $- $- $2 Total Expenditures $100,905 $77,984 $86,618 $84,454 Fund Balance $- $- $- $- General Fund Costs $100,905 $77,984 $86,618 $84,454 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget BUILDING INSPECTOR 0.20 0.20 0.20 0.20 SR BUILDING INSPECTOR 0.05 0.05 0.05 0.05 Total 0.25 0.25 0.25 0.25 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Community Development 426 Code Enforcement Budget Unit 100-74-202 General Fund-Code Enforcement-Code Enforcement Budget at a Glance 2023 Adopted Budget Total Revenues $225,000 Total Expenditures $1,246,971 Fund Balance $- General Fund Costs $1,021,971 %Funded by General Fund 82.0% Total Staffing 4.0 FTE Program Overview The Code Enforcement program provides enforcement of various provisions of the municipal code relating to parking citations, noise, animal control, zoning and building, and other compliance areas. Assistance is provided to the Sheriff Department in the areas of traffic control and other complaint responses. Service Objectives • Respond to resident,City department,or outside agency referrals within 48 hours. • Provide services with an emphasis on community education and customer service. . Enforce the codes in a fair,equitable,and objective manner. . Manage the animal control services contract with the City of San Jose. Adopted Budget On June 9, 2022, City Council approved a budget of $1,246,971 for the Code Enforcement program. This represents an increase of$44,579(3.7%)from the FY 2021-22 Adopted Budget. The increase is primarily due to an increase in employee compensation and benefits for a new position and is offset by a reduction in cost allocation. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Community Development 427 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $5,082 $4,768 $- $- Fines and Forfeitures $127,723 $26,998 $225,000 $225,000 Miscellaneous Revenue $521 $- $- $- Total Revenues $133,326 $31,766 $225,000 $225,000 Expenditures Employee Compensation $372,534 $356,222 $402,920 $438,824 Employee Benefits $167,450 $161,704 $183,330 $231,321 Materials $10,119 $6,458 $18,310 $19,006 Contract Services $258,341 $284,040 $311,793 $311,793 Cost Allocation $105,495 $274,009 $277,786 $237,757 Contingencies $- $- $8,253 $8,270 Total Expenditures $913,939 $1,082,433 $1,202,392 $1,246,971 Fund Balance $- $- $- $- General Fund Costs $780,613 $1,050,667 $977,392 $1,021,971 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Budget Actual Actual Budget CODE ENFORCEMENT OFFICER 0 1.00 1.00 2.00 SR CODE ENFORCEMENT 3.00 2.00 2.00 2.00 OFFICER Total 3.00 3.00 3.00 4.00 Staffing is increasing due to the conversion of a part-time Code Enforcement Officer to full-time. The Code Enforcement Division ensures that the community complies with the policies, processes, and municipal laws associated with Community Development functions. These functions include development planning,building construction, habitability of housing stock, and fire prevention. Code Enforcement staff work closely with property and business owners to educate and gain voluntary compliance with the Cupertino Municipal Code. The volume of cases and inquiries have remained consistently high, both before and during the COVID-19 pandemic. Annually, the Code Enforcement Division receives approximately 1,400 cases and 2,500 inquiries. The conversion of a part-time code enforcement officer to full-time will provide better weekend coverage and alleviate the high volume of cases and inquiries and meet expectations from the community. The addition will also provide better interdepartmental and interagency coordination and support. FY 2022-23 Adopted Budget Community Development 428 Public Works FY 2022-23 Adopted Budget Public Works 429 This page intentionally left blank. FY 2022-23 Adopted Budget Public Works 430 Department Overview Budget Units Budget Unit Program 2023 Adopted Budget Public Works Administration $1,158,135 100-80-800 Public Works Administration $1,158,135 Environmental Programs $4,352,489 520-81-801 Resource Recovery $2,285,090 230-81-802 Non-Point Source $1,226,654 230-81-853 Storm Drain Fee $25,528 230-81-854 General Fund Subsidy $30,215 230-81-855 Storm Drain Maintenance $785,002 Developmental Services $3,276,401 100-82-804 Plan Review $1,471,996 100-82-806 CIP Administration $1,804,405 Service Center $1,290,762 100-83-807 Service Center Administration $1,290,762 Grounds $6,784,938 100-84-808 McClellan Ranch Park $235,194 100-84-809 Memorial Park $871,977 100-84-811 BBF Ground Maintenance $298,534 100-84-812 School Site Maintenance $1,630,018 100-84-813 Neighborhood Parks $2,687,196 100-84-814 Sport Fields Jollyman,Creekside $881,604 100-84-815 Civic Center Maintenance $180,415 Streets $10,242,641 100-85-818 Storm Drain Maintenance $- 270-85-820 Sidewalk Curb and Gutter $1,982,206 270-85-821 Street Pavement Maintenance $4,587,213 270-85-822 Street Sign Marking $829,894 100-85-848 Street Lighting $1,024,841 630-85-849 Equipment Maintenance $1,594,350 Total $39,921,995 FY 2022-23 Adopted Budget Public Works 431 Budget Unit Program 2023 Adopted Budget 100-85-850 Environmental Materials $224,137 Trees and Right of Way $4,259,367 100-86-261 Trail Maintenance $232,764 100-86-824 Overpasses and Medians $1,802,896 100-86-825 Street Tree Maintenance $1,681,931 100-86-826 Sheriff Work Program $541,776 Facilities and Fleet $5,546,934 560-87-260 BBF Golf Maintenance $133,586 100-87-827 City Hall Maintenance $548,697 100-87-828 Library Maintenance $667,502 100-87-829 Service Center Maintenance $435,665 100-87-830 Quinlan Community Center Maintenance $638,815 100-87-831 Senior Center Maintenance $616,786 100-87-832 McClellan Ranch Maintenance $238,267 100-87-833 Monta Vista Community Center Maintenance $202,498 100-87-834 Wilson Park Maintenance $104,887 100-87-835 Portal Park Maintenance $69,185 570-87-836 Sports Center Maintenance $640,197 100-87-837 Creekside Park Maintenance $111,461 100-87-838 Community Hall Maintenance $255,256 100-87-839 Teen Center Maintenance $50,100 100-87-840 Park Bathrooms Maintenance $212,702 100-87-841 Blackberry Farm Maintenance $578,769 100-87-852 Franco Traffic Operations Center $17,036 100-87-857 City Hall Annex $25,525 Transportation $3,002,484 100-88-844 Traffic Engineering $1,530,072 100-88-845 Traffic Signal Maintenance $811,350 100-88-846 Safe Routes 2 School $661,062 Non-Departmental $7,844 210-90-978 Minor Storm Drain Improvement $- Total $39,921,995 FY 2022-23 Adopted Budget Public Works 432 Budget Unit Program 2023 Adopted Budget 630-90-985 Fixed Assets Acquisition $7,844 Total $39,921,995 FY 2022-23 Adopted Budget Public Works 433 Budget at a Glance 2023 Adopted Budget Total Revenues $9,118,510 Total Expenditures $39,921,995 Fund Balance $(8,046,480) General Fund Costs $22,818,145 %Funded by General Fund 57.2% Total Staffing 94.1 FTE Organization Matt Morley,Director of Public Works Director of Public Works Assistant Director of Assistant Director of Administrative Capital Improvement Environmental Senior Management ETransportation Public Works:City Public Works: Assistant Engineer Operations Program Manager Programs Manager Analyst er Administrative Environmental Program HEngineering Technician Assistant Assistant Engineer Compliance Technician Management Analystant Engineer Facilities&Fleet Public Works Project Environmental Safe Routes 2 School Public Works Inspector Supervisor Manager(6) Programs Assistant(4) Community Coordinator Public Works Project Environmental Senior Transportation enior Civil Engineer(2) Grounds Supervisor Manager Limited Term Programs Specialist Planner (1) 11 Senior Office Assistant raffic Signal Technicia (2) Fstr�,ts---,sor Trees&Right of Way Supervisor FY 2022-23 Adopted Budget Public Works 434 Performance Measures Capital Project Delivery Goal: Develop and deliver projects on time and within budget that serve the resident's needs and supports the City's stability and growth. Benefit: Residents and businesses are assured their community is being improved by insightful, targeted and efficient use of taxes and fees towards maintaining and improving the City's facilities and assets. FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target Percentage of projects completed on 95% 90/°° 100 95/°/°° ° budget Percentage of construction projects 78/° completed on time ° 90% 100% 95% *FY21: 10 projects completed,9 projects on budget and time *FY22:2 projects completed Environment Goal:Protect our natural environment for current and future generations. Benefit:Current and future residents enjoy a healthy,sustainable environment. FY 2022-23 Adopted Budget Public Works 435 FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target Percent of businesses in compliance during annual proactive stormwater 95% 96% N/A* 75% pollution prevention inspections Percent of non-exempt businesses 100%by CY 2019 and multi-family accounts separating 64% 79%** 81%*** 7/1/2022 organics (SB1383) Percent trash/litter reduction 100%by achieved to meet Stormwater Permit 92% 88% N/A**** 7/1/2022 requirements Diversion rate from all single-family, multi-family,and commercial 54% 53% 52% 55% accounts as reported by Recology tonnage reports Respond to reports of actual or potential discharge the same business 89% 89% 97% 95% day %of plan reviews completed in 83% 90% 91% 100% required number of days Cubic yards of compost distributed 740 CY 1,165 CY 240 CY 1,000 CY via compost site %of vegetation obstructions resolved 38% 31/°° 35 100/°/°° ° within 15 days from time of report* *Inspections occur in the spring only **as of 12/31/2020 ***as of 9/7/2021 ****calculated for Annual Report in September Development Services Goal: Provide timely review and permitting of privately completed improvements within the public right of way. Benefit: Customers can expect quality reviews and permitting on a defined schedule, and the community can expect quality public facilities. FY 2022-23 Adopted Budget Public Works 436 FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target Respond to complete plan submittals 95% 93/0 95% 90/�° or applications within two(2)weeks Respond to complete encroachment permit applications within two(2) 93% 92% 94% 90% weeks Respond to public inquiries at the Public Works counter in City Hall 95% 95% within 15 minutes *In-person counter closed starting March 2020 Grounds Division Goal: Provide well maintained, clean, and safe areas for the community's recreational use and enjoyment at optimal life cycle costs. Benefit: Cupertino has a well maintained public park system that meets the needs of the community and is beneficial to personal wellness. FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target Percentage of 311 requests that are responded to and closed within 3 72% 74% 85% 80% business days Percentage of the 2,964 park inspections,including play grounds, 100% 100% 50% 100% performed 3 times weekly Percentage of Backflow Prevention Devices inspected,tested and 100% 100% 50% 100% repaired annually Streets Division Goal:Timely maintenance of public sidewalks, streets,streetlights and storm drain system in good condition to ensure safe, environmentally compliant, and accessible infrastructure that minimizes liability and has an optimal life cycle cost. Benefit:Cupertino has well maintained street and storm drain systems that meet the needs of the community. FY 2022-23 Adopted Budget Public Works 437 FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target Pavement condition index(PCI)>or e 85 85 85 82 equal to 82 Percent of the 2199 storm drain inlets 94/°° 95% 1% 100% inspected and cleaned in fiscal year Percent of Inlets with Trash Capture Screens inspected and cleaned twice 100% 100% 50% 100% yearly Percentage of roadway regulatory& street name signs repaired or 5.1% 5.5% 2.8% 7% replaced Percentage of trip and fall complaints investigated and mitigated within 2 100% 100% 100% 98% business days Percentage of reported streetlight outages investigated and repaired in 89% 90% 90% 90% 3 business days Trees and Right of Way Division Goal: Maintain and enhance the City's street trees and medians to ensure a safe, healthy and environmentally conscious Urban Forest. Benefit: Cupertino has a healthy and safe urban forest and medians provide good aesthetic and environmental value. FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target Percentage of 311 requests that are responded to and closed within 3 96% 95% 83% 95% business days Percentage of trees inspected and maintained in the yearly maintenance 76% 97% 23% 100% zone(8 year maintenance cycle) Percentage of trees planted versus trees removed 76% 92% 78% 101% 69/91 187/202 66/84 #planted/#removed FY 2022-23 Adopted Budget Public Works 438 Facilities and Fleet Division Goal: Timely maintain City Facilities and City Fleet to meet staff, community and environmental requirements at an optimal life cycle cost. Benefit: Cupertino has well-maintained, usable, and safe facilities and fleet in order to meet the needs of staff and the community. FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target Percentage of preventative maintenance work orders completed 82% 83/°° 97/°° 85/°�, for Fleet assets within 14 days of the due date. Percentage of facilities maintenance 90% 89% 83% 90% requests closed within 30 days. Transportation Division Goal:Ensure the efficiency and safety of the transportation system for all modes of travel. Benefit:Having a safe and efficient transportation system that is inviting for all modes of travel. FY 2020 FY 2021 FY 2022 Ongoing Performance Measure July-June July-June July-Dec Target Percentage of non-emergency traffic signal requests addressed within 72 90% 90% 93% 100% hours. Percentage of emergency traffic signal 100% 100% 100% 100% requests addressed within 2 hours. Percentage of traffic engineering 95% 95% 95% 95% requests responded to within 72 hours Annual mileage increase of separated 0.72 1.30 0.66 1 mile bicycle lanes and pedestrian paths. FY 2022-23 Adopted Budget Public Works 439 Workload Indicators Capital Improvement Program Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Number of projects started in the first year 6/7 9/9 15/15 funded Number of active projects vs total number of 33/40 58/71 59/64 projects Environmental Programs Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Number of actual versus potential discharges 75 actual 71 actual 40 actual 4 potential 6 potential 5 potential Number of stormwater pollution prevention 155 135 0* industrial commercial inspections Number of building and demolition permits 495 679 298 reviewed Number of non-exempt businesses and multi- 463 289** 293*** family accounts required to separate organics Tons of waste entering landfill from single- July 2021-Nov family,multi-family,and commercial 21,368 18,224 2021: 7,583**** accounts as reported by Recology Number of visitors to compost site 1,333 2,489 625 Number of vegetation obstructions reported 80 87 63 *inspections occur in the spring only **As of Dec 31,2020 ***As of Sept 7,2021 ****Dec 2021 report not available yet FY 2022-23 Adopted Budget Public Works 440 Developmental Services Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Number of development permit applications 105 127 100 received Number of encroachment permit applications 418 577 217 received Number of customers service visits 1139 0* 5* *Permit Center closed Mar 2020-Mar 2022,Customers assisted by phone Grounds Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Maintain city grounds(#)with total acreage 27 sites/148 AC 29 sites/149 AC 29 sites/149 AC (SF) Maintain school sites(#)with total acreage(SF) 9 sites/46 AC 9 sites/46AC 9 sites/46 AC Total Number of 311 Requests 53 43 20 Total number of play grounds maintained 37 37 37 Total number of irrigation controllers 74 74 74 maintained Total number of park trees maintained 4,132 4,098 4,098 Total number of park furniture maintained 431 431 431 (tables and benches) Total number of city trash receptacles 420 420 420 maintained Total number of backflow preventers 174 174 174 maintained Streets Division FY 2022-23 Adopted Budget Public Works 441 Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Total roadway miles 138 138 138 Total concrete sidewalk miles 196 196 196 Total number of unique sidewalk repair sites 1770 697 658 addressed Total square footage of sidewalk,curb and 43,411 37,574 N/A gutter repaired/replaced Total number of storm drain inlets 2,199 2,087 2,087 Total number of drain inlets with trash capture 146 174 174 devices Total number of streetlights 3,287 3,287 3,287 Total number of roadway signs 9,979 10,054 10,123 Total miles of storm drain pipe maintained 104.7 104.7 104.7 Total number of crosswalks maintained 694 728 728 Total miles of pavement striping maintained 161 162 162 Total number of street miles swept monthly 696 696 696 Trees and Right of Way Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Total number of street trees 20,136 3,789 Trees 1,929 Trees maintained Maintained Total acreage of medians maintained 40 AC 40 AC 40 AC Total number of median islands maintained 286 286 286 Total square feet of median landscape converted or installed to water efficient 47,319 23,854 1,624 landscaping Total number of irrigation controllers 44 45 45 maintained Total number of 311 Requests for tree 197 634 219 maintenance Miles of pedestrian and bicycle trails 0.85 0.85 0.85 maintained FY 2022-23 Adopted Budget Public Works 442 Facilities and Fleet Division Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Total number of city facilities maintained 49/210,000 SF 51/221,500 SF 51/221,500 SF Total number of Fleet vehicles maintained 104 104 105 Total number of special equipment maintained (tractors,trailers,chippers,riding mowers, 129 317 317 club car,forklift,generator) Total number of small equipment maintained 516 356 356 1580 Facilities 1,426 Facilities 993 Facilities Total number of work orders completed 628 Fleet 769 Fleet 399 Fleet Fleet vehicles replaced with hybrid and/or 17 18 18 electric models Annual number of site visits to ensure janitorial compliance 848 2,829 2,622 Transportation Workload Indicator FY 2020 FY 2021 FY 2022 July-June July-June July-Dec Number of signalized intersections 60 60 60 Adopted Budget On June 9, 2022, City Council approved a budget of $39,921,995 for the Public Works department. This represents a decrease of$823,326(-2.0%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. The decrease in Cost Allocation is due to lower Human Resources and IT costs and is offset by increases in materials due to utility rate increases and restoration of services post-Covid, and salaries and benefits due to the addition of a Management Analyst and Maintenance Worker Lead. Historically, expenses have increased due to additional staffing,negotiated cost-of-living adjustments (COLA), utility rate increases, materials, contracts, and special projects. Materials typically increase by CPI, although utility rates have increased considerably more. Notably, a new custodial service contract and crossing guard FY 2022-23 Adopted Budget Public Works 443 contract, which rely heavily on contract labor, saw significant increases over previous agreements. Special Projects requests vary from year to year. FY 2022-23 Adopted Budget Public Works 444 Adopted Expenditures by Division ■ Streets Grounds •• ■ Facilities and Fleet Environmental Programs Trees and Right of Way ■ Developmental Services Transportation ■ Service Center �.• ■ Public Works Administration Non-Departmental Department Expenditure History $40.7M $39.9M $30.6M $30.2M 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget FY 2022-23 Adopted Budget Public Works 445 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $362,504 $231,504 $309,466 $226,856 Intergovernmental Revenue $1,678,791 $2,331,864 $1,696,698 $1,885,852 Charges for Services $8,770,453 $7,040,041 $6,711,817 $6,787,667 Fines and Forfeitures $16,175 $5,065 $10,000 $68,669 Miscellaneous Revenue $139,467 $614,192 $138,103 $ 149,466 Total Revenues $10,967,390 $10,222,666 $8,866,084 $9,118,510 Expenditures Employee Compensation $8,616,476 $8,925,718 $10,404,746 $10,804,062 Employee Benefits $4,114,572 $4,258,223 $5,311,138 $5,519,037 Materials $3,333,096 $3,325,834 $4,686,193 $4,936,170 Contract Services $3,609,577 $3,139,677 $4,903,684 $4,943,009 Cost Allocation $4,947,624 $6,942,254 $8,112,766 $7,160,466 Capital Outlays $982,379 $63,826 $1,000,000 $1,038,000 Special Projects $4,948,231 $3,568,809 $6,067,440 $5,274,271 Contingencies $- $- $259,354 $246,980 Total Expenditures $30,551,955 $30,224,341 $40,745,321 $39,921,995 Fund Balance $(4,265,655) $(2,173,218) $(8,179,568) $(8,046,480) General Fund Costs $15,318,915 $17,843,454 $23,744,669 $22,818,145 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 2.00 1.95 1.95 1.95 ASSISTANT ENGINEER 3.00 2.00 2.00 2.00 ASSIST DIR OF PW ENGINEER 1.00 1.00 1.00 1.00 ASSIST DIR PUBLIC WORKS OPS 0 1.00 1.00 1.00 FY 2022-23 Adopted Budget Public Works 446 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget BUILDING INSPECTOR 0.08 0.08 0.08 0.08 CIP MANAGER 1.00 1.00 1.00 1.00 DIRECTOR OF PUBLIC WORKS 1.00 1.00 1.00 1.00 ENGINEERING TECHNICIAN 1.00 1.00 1.00 1.00 ENVIRONMENTAL PROGRAM MGR 1.00 1.00 1.00 1.00 ENVIRONMENTAL PROGRAMS 3.00 2.65 3.65 3.65 ASSISTANT ENV.PROG.COMPLIANCE 1.00 1.00 1.00 1.00 TECHNICIAN ENV.PROGRAMS SPECIALIST 1.00 1.00 1.00 1.00 EQUIPMENT MECHANIC 1.00 1.00 1.00 1.00 LEAD EQUIPMENT MECHANIC 1.00 1.00 1.00 1.00 MAINTENANCE WORKER I/II 45.00 45.00 45.00 45.00 MAINTENANCE WORKER III 7.00 7.00 7.00 8.00 MANAGEMENT ANALYST 0.30 0.20 0.20 1.20 PARK RESTOR&IMPROV MNGR 1.00 0 0 0 PUBLIC WORKS INSPECTOR 2.00 2.00 2.00 2.00 PUBLIC WORKS PROJECT MANAGER 3.00 4.00 5.00 6.00 PUBLIC WORKS PROJECT MANAGER 1.00 2.00 2.00 1.00 LT PUBLIC WORKS SUPERVISOR 4.00 4.00 4.00 4.00 RECREATION COORDINATOR 0.15 0.12 0.12 0.12 SENIOR CIVIL ENGINEER 2.00 2.00 2.00 2.00 SENIOR MANAGEMENT ANALYST 1.00 1.00 1.00 1.00 SERVICE CENTER SUPERINTENDENT 1.00 0 0 0 SR BUILDING INSPECTOR 0.02 0.02 0.02 0.02 SR OFFICE ASSISTANT 1.00 1.00 1.00 1.00 STREET LIGHTING WORKER 1.00 1.00 1.00 1.00 SUSTAINABILITY MANAGER 0.20 0.20 0.20 0.20 TRAFFIC SIGNAL TECHNICIAN 1.00 1.00 1.00 2.00 TRAFFIC SIGTECH APRNTICE 1.00 1.00 1.00 0 TRANSIT&TRANSPORTATION 1.00 1.00 1.00 1.00 PLANNER FY 2022-23 Adopted Budget Public Works 447 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget TRANSPORTATION MANAGER 1.00 0.90 0.90 0.90 Total 90.75 90.12 92.12 94.12 FY 2022-23 Adopted Budget Public Works 448 Public Works Administration Budget Unit 100-80-800 General Fund-Public Works Administration-Public Works Administration Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $1,158,135 Fund Balance $- General Fund Costs $1,158,135 %Funded by General Fund 100.0% Total Staffing 4.5 FTE Program Overview The Public Works Department is comprised of the following eight divisions: . Development Services(including inspection services) • Capital Improvement Program Administration . Environmental Programs • Transportation • Facilities and Fleet • Trees and Right-of-Way • Grounds • Streets Service Objectives • Provide capital project delivery, development plan check, permitting and inspection, solid waste and recycling services, stormwater quality compliance, and public works maintenance services in a responsive and efficient manner by continuously adapting programs and resources to meet the community's expectations. • Provide a response within 24 hours to the community on complaints and requests for services. Plan and program maintenance of the City's public facilities and infrastructure. • Program and deliver Capital Improvement Projects in a timely and cost-efficient manner. Work with operating departments and the community to ensure projects meet expectations. • Collaborate with Community Development to efficiently deliver predictable, responsive and efficient development services. • Represent the City on county and regional issues such as congestion management, and mobility and transit planning. . Manage and adapt traffic operations to efficiently move traffic and protect neighborhoods. . Oversee and manage stormwater,solid waste and recycling programs. FY 2022-23 Adopted Budget Public Works 449 Adopted Budget On June 9, 2022, City Council approved a budget of$1,158,135 for the Public Works Administration program. This represents an increase of$191,403(19.8%)from the FY 2021-22 Adopted Budget. The increase is due to reallocation of staff in this program and the addition of a Management Analyst to assist with department-wide reporting, analysis and contracts.This is offset by a decrease in one-time special projects that vary from year to year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $ 111,092 $18,959 $- $- Total Revenues $111,092 $18,959 $- $- Expenditures Employee Compensation $585,438 $588,300 $607,834 $814,290 Employee Benefits $203,702 $218,709 $244,422 $323,926 Materials $13,326 $5,697 $14,123 $19,167 Contract Services $15,620 $- $- $266 Cost Allocation $52,945 $- $- $- Special Projects $- $21,068 $100,000 $- Contingencies $- $- $353 $486 Total Expenditures $871,031 $833,774 $966,732 $1,158,135 Fund Balance $- $- $- $- General Fund Costs $759,938 $814,816 $966,732 $1,158,135 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 450 Position Title 2020 2021 2022 Adopted 2023 Adopted Budget Actual Actual Budget ADMINISTRATIVE ASSISTANT 1.00 0.95 0.95 0.95 ASSIST DIR OF PW ENGINEER 0.05 0.10 0.10 0.50 DIRECTOR OF PUBLIC WORKS 1.00 1.00 1.00 1.00 MANAGEMENT ANALYST 0 0 0 1.00 SENIOR MANAGEMENT 1.00 1.00 1.00 1.00 ANALYST Total 3.05 3.05 3.05 4.45 The increase in staffing is due to the addition of a Management Analyst position. This position will provide additional support and operational continuity to the Senior Management Analyst, Public Works Director, CIP Manager,and division managers. FY 2022-23 Adopted Budget Public Works 451 Resource Recovery Budget Unit 520-81-801 Resource Recovery-Environmental Programs-Resource Recovery Budget at a Glance 2023 Adopted Budget Total Revenues $1,212,642 Total Expenditures $2,285,090 Fund Balance $(1,072,448) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 3.5 FTE Program Overview The Resource Recovery program manages the City's garbage and recycling franchised hauler contract and provides garbage and recycling customer service for residents and business owners; develops and implements programs and policy to comply with State source reduction and recycling mandates; oversees the free compost giveaway at the compost site; and represents the City on countywide committees. The public education and outreach programs led by this division include visits to businesses and apartment complexes to provide recycling instruction, kitchen containers, and visual materials; presentations at events and schools and employee training for businesses on-site as needed. The program coordinates many complimentary activities with the Sustainability program in the Office of the City Manager. Service Objectives • Meet State requirements to divert recyclables and organics from landfill.Help businesses implement the City's Mandatory Organics Recycling ordinance (6.24.037) which ensures compliance with SB 1383, California's Short-Lived Climate Pollutant Reduction Strategy. Provide landlords and property owners with support and educational materials for their tenants. Conduct waste characterization studies to determine future services. • Provide contract oversight and customer service for garbage and recycling collection, yard waste processing, composting and household hazardous waste. Manage community events such as the citywide Garage Sale and free compost giveaway for residents. Assist CUSD and high school teachers and students with student recycling and composting projects related to teachers' curriculum and the City's environmental initiatives. Adopted Budget On June 9, 2022, City Council approved a budget of $2,285,090 for the Resource Recovery program. This represents an increase of$62,994(2.8%)from the FY 2021-22 Adopted Budget. This budget is relatively unchanged from last fiscal year. FY 2022-23 Adopted Budget Public Works 452 Special Projects The following table shows the special projects for the fiscal year. Special Projects Appropriation Revenue Funding Source Description City Work Program: Single Use Plastics Adopt and Project implement an Implementation $40,000 $40,000 Resource Recovery ordinance to (WP21 016) address single use food service ware items CalRecycle SB 1383 CalRecycle SB 1383 Local Assistance $77,553 $77,553 Resource Recovery Local Assistance Grant Grant. Total $117,553 $117,553 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 453 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $110,972 $90,675 $- $- Intergovernmental Revenue $14,950 $14,916 $14,000 $14,000 Charges for Services $1,796,907 $1,804,946 $1,470,578 $1,188,642 Miscellaneous Revenue $9,819 $- $10,000 $10,000 Total Revenues $1,932,648 $1,910,537 $1,494,578 $1,212,642 Expenditures Employee Compensation $473,539 $220,054 $444,991 $438,802 Employee Benefits $272,876 $124,195 $211,635 $212,572 Materials $45,987 $28,695 $68,701 $75,166 Contract Services $972,827 $800,387 $1,011,051 $1,175,402 Cost Allocation $182,836 $275,853 $337,474 $234,331 Special Projects $265,338 $221,078 $120,000 $117,553 Contingencies $- $- $28,244 $31,264 Total Expenditures $2,213,403 $1,670,262 $2,222,096 $2,285,090 Fund Balance $(280,756) $240,275 $(727,518) $ (1,072,448) General Fund Costs $- $- $- $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ASSIST DIR OF PW ENGINEER 0.25 0 0 0 ENVIRONMENTAL PROGRAM MGR 0.65 0.50 0.50 0.50 ENVIRONMENTAL PROGRAMS 1.65 1.30 2.30 2.30 ASSISTANT ENV.PROG.COMPLIANCE 0.65 0.05 0.05 0.05 TECHNICIAN ENV.PROGRAMS SPECIALIST 0.65 0.40 0.40 0.40 MANAGEMENT ANALYST 0.15 0.05 0.05 0.05 SUSTAINABILITY MANAGER 0.20 0.20 0.20 0.20 Total 4.20 2.50 3.50 3.50 FY 2022-23 Adopted Budget Public Works 454 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 455 Non-Point Source Budget Unit 230-81-802 Env Mgmt Cln Creek Storm Drain-Environmental Programs-Non-Point Source Budget at a Glance 2023 Adopted Budget Total Revenues $1,579,224 Total Expenditures $1,226,654 Fund Balance $352,570 General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 2.8 FTE Program Overview The Non-Point Source program manages the City's compliance with its State-mandated Municipal Regional Stormwater NPDES Permit. Compliance activities include program and policy development and implementation of state-mandated complaint response and enforcement programs as well as annual interdepartmental staff training; and scheduled business and construction site inspections. The program reviews development plans to ensure compliance with low impact development (LID); and new Green Infrastructure Plan development requirements. The program is responsible for calculating storm drain fees annually to submit to the County for collection on property tax bills, writing an annual report to the Regional Water Quality Control Board to verify and document the City's compliance with Clean Water Act mandates, and engaging and educating the public via City communication channels,visits to businesses and presentations at local schools, De Anza College and community events. Public participation events in a typical year include two or more annual volunteer creek cleanup days, an interactive water quality monitoring day, Earth Day and various countywide collaborative events. Implementation and annual progress assessment of the City's eight- year litter reduction plan are among the requirements of the City's Non-Point Source program. Service Objectives • Oversee the City's compliance with the Municipal Regional Stormwater Permit(MRP 2.0)with regard to water pollution prevention, erosion control, conserving water as a resource (e.g. infiltration rather than runoff), and low impact development (LID) via the City's permit application process and conditions of approval. • Coordinate urban runoff pollution and erosion prevention activities with other departments, divisions, and private businesses.Mandated activities include: catch basin cleaning;post-construction oversight of permanent stormwater treatment measures installed at private new and redeveloped sites; implementation of,and annual progress assessments for the eight-year litter reduction plan;oversight of construction best management practices during private and public construction; inspection of grease- generating and wet-waste food facilities and other businesses to prevent water-polluting discharges; complaint response and investigation to protect water quality; and education of staff and local businesses on best management practices for outdoor storage and activities. FY 2022-23 Adopted Budget Public Works 456 Represent the City on county and regional committees to prevent creek and San Francisco Bay pollution, erosion,and illegal dumping. Adopted Budget On June 9, 2022, City Council approved a budget of $1,226,654 for the Non-Point Source program. This represents an increase of$41,075(3.5%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. The increase in compensation and benefits is due to the addition of part-time staff. The increase in materials is due to conferences, which were virtual in 2020 and 2021, and the State Water Resources Control Board permit fee. Contract Services are increasing due to higher bus costs for Cupertino Union School District students due to COVID protocols. The increases are offset by a decrease in Cost Allocation due to lower Human Resources and IT costs in FY 2020-21. Special Projects The following table shows the special projects for the fiscal year. Special Projects Appropriation Revenue Funding Source Description Storm Water Update for Pollution Prevention Environmental compliance with Plan(SWPPP) $19,100 $19,100 Management Clean regional storm water Update Creek Storm Drain permit requirements. Total $19,100 $19,100 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 457 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $651 $1,878 $- $- Charges for Services $1,403,738 $1,475,810 $1,543,100 $1,510,555 Fines and Forfeitures $16,175 $5,065 $10,000 $68,669 Total Revenues $1,420,564 $1,482,753 $1,553,100 $1,579,224 Expenditures Employee Compensation $277,260 $339,790 $350,885 $383,780 Employee Benefits $119,595 $153,940 $175,214 $182,630 Materials $28,350 $26,359 $32,103 $40,296 Contract Services $277,836 $244,962 $361,611 $394,170 Cost Allocation $70,925 $ 136,205 $255,923 $ 195,816 Special Projects $- $- $- $19,100 Contingencies $- $- $9,843 $10,862 Total Expenditures $773,966 $901,256 $1,185,579 $1,226,654 Fund Balance $1,306,597 $581,497 $367,521 $352,570 General Fund Costs $660,000 $- $- $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 458 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ASSIST DIR OF PW ENGINEER 0.20 0 0 0 BUILDING INSPECTOR 0.08 0.08 0.08 0.08 ENVIRONMENTAL PROGRAM MGR 0.35 0.50 0.50 0.50 ENVIRONMENTAL PROGRAMS 0.35 0.35 0.35 0.35 ASSISTANT ENV.PROG.COMPLIANCE 0.35 0.95 0.95 0.95 TECHNICIAN ENV.PROGRAMS SPECIALIST 0.35 0.60 0.60 0.60 MAINTENANCE WORKER I/II 1.00 0 0 0 MAINTENANCE WORKER III 0.05 0.10 0.10 0.10 PUBLIC WORKS INSPECTOR 0 0.10 0.10 0.10 RECREATION COORDINATOR 0.15 0.12 0.12 0.12 SR BUILDING INSPECTOR 0.02 0.02 0.02 0.02 Total 2.90 2.82 2.82 2.82 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 459 Storm Drain Fee Budget Unit 230-81-853 Env Mgmt CIn Creek Storm Drain-Environmental Programs-Storm Drain Fee Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $25,528 Fund Balance $(25,528) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview Adopted Budget On June 9, 2022, City Council approved a budget of$25,528 for the Storm Drain Fee program. This represents an increase of$25,332(12924.5%)from the FY 2021-22 Adopted Budget. Special Projects The following table shows the special projects for the fiscal year. Special Projects Appropriation Revenue Funding Source Description Permeable Clean Water and Funding for Pavement Rebate $12,500 $12,500 Storm Protection permeable Program Fee pavement rebate program. Matching rebate Clean Water and with Valley Water Rain Garden Rebate $12,500 $12,500 Storm Protection Fee for qualifying rain garden projects. Total $25,000 $25,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 460 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Cost Allocation $- $- $ 196 $528 Special Projects $- $ 1,105 $- $25,000 Total Expenditures $- $1,105 $196 $25,528 Fund Balance $- $(1,105) $(196) $(25,528) General Fund Costs $- $- $- $- Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Public Works 461 General Fund Subsidy Budget Unit 230-81-854 Env Mgmt Cln Creek Storm Drain-Environmental Programs-General Fund Subsidy Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $30,215 Fund Balance $(30,215) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview The City has a joint use agreement for playing fields at schools in CUSD, and part of that agreement requires a refund to CUSD of half of the fees they pay each year for the Clean Water and Storm Protection Fee, which is based on parcel size and use category. The details of the fee prohibit using collected funds for providing discounts or refunds,so funding for that purpose must come from the General Fund. In addition, the City has a Clean Water Cost-Share Program allowing low-income property owners to receive a discounted rate on the Clean Water and Storm Protection Fee that is charged on property tax bills. The details of the fee prohibit using collected taxes for providing discounts or refunds, so funding for this purpose must come from the General Fund. Adopted Budget On June 9, 2022, City Council approved a budget of $30,215 for the General Fund Subsidy program. This represents an increase of$29,814(7434.9%)from the FY 2021-22 Adopted Budget. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Public Works 462 Special Projects Appropriation Revenue Funding Source Description Clean Water and Storm Protection CUSD Joint Use Fee cost-share Cost Share $21,868 $21,868 General Fund program for Cupertino Union School District. Clean Water and Clean Water Cost- Storm Protection share Program $8,000 $8,000 General Fund Fee 20%cost-share program for low- income residents. Total $29,868 $29,868 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues $- $- $- $- Expenditures Cost Allocation $- $- $401 $347 Special Projects $838 $8,724 $ - $29,868 Total Expenditures $838 $8,724 $401 $30,215 Fund Balance $(838) $(8,724) $(401) $(30,215) General Fund Costs $- $- $- $- Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Public Works 463 Storm Drain Maintenance Budget Unit 230-81-855 Env Mgmt Cln Creek Storm Drain-Environmental Programs-Storm Drain Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $785,002 Fund Balance $(785,002) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 2.3 FTE Program Overview The Storm Drain Maintenance program manages the City's storm drainage collection system, which is comprised of approximately 90 miles of pipe, 2,215 drain inlets, and storm outfalls to local waterways. An inspector and on-call staff provide emergency response to pollutant discharges, and crews perform general system maintenance including annual cleanout of drain inlets. and trash capture devices. Collection and management of storm water for the City is regulated under the terms of a Bay Area-wide National Pollutant Discharge Elimination System(NPDES)and the Municipal Separate Storm Sewer System(MS4)Permit. Service Objectives • Provide effective and timely inspection and maintenance of the storm drain system including inlet and outfall structures and collection system. • Provide annual cleaning and inspection of all inlets and full trash capture devices. Adopted Budget On June 9, 2022, City Council approved a budget of$785,002 for the Storm Drain Maintenance program. This represents an increase of$6,095(0.8%)from the FY 2021-22 Adopted Budget. The decrease is primarily due to a decrease in Cost Allocation expenses. Cost allocation expenses decreased due to lower IT costs in FY 2020-21. The decrease is offset by an increase in salary and benefits due to the reallocation of positions. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 464 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $- $ 172 $- $- Total Revenues $- $172 $- $- Expenditures Employee Compensation $- $206,433 $234,075 $235,636 Employee Benefits $- $94,211 $112,087 $111,422 Materials $- $14,927 $23,332 $24,219 Contract Services $- $55,671 $252,762 $270,192 Cost Allocation $- $92,340 $149,749 $136,173 Contingencies $- $- $6,902 $7,360 Total Expenditures $- $463,582 $778,907 $785,002 Fund Balance $- $ (463,409) $(778,907) $(785,002) General Fund Costs $- $- $- $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0 1.75 1.75 1.80 MAINTENANCE WORKER III 0 0.20 0.20 0.20 PUBLIC WORKS SUPERVISOR 0 0.25 0.25 0.25 Total 0 2.20 2.20 2.25 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Public Works 465 Plan Review Budget Unit 100-82-804 General Fund-Developmental Services-Plan Review Budget at a Glance 2023 Adopted Budget Total Revenues $1,408,348 Total Expenditures $1,471,996 Fund Balance $- General Fund Costs $63,648 %Funded by General Fund 4.3% Total Staffing 4.1 FTE Program Overview The Development Services Division is comprised of two areas: . Development Services - reviews plans for private developments and utility encroachments to ensure conformance with City standards and policies. • Inspection Services - ensures compliance with City standards and approved plans on all public and private developments and utility projects. Service Objectives • Ensure that private development projects provide necessary supporting infrastructure and potential impacts on the community are mitigated. • Place safety of the general public, City employees and construction workers as the highest priority on construction sites. • Inspect utility encroachment permits for work within the City right-of-way and return streets and sidewalks to City standards. • Ensure compliance with stormwater permits and prevent runoff from polluting nearby watersheds. Work closely with the Environmental Programs Division to continue inspecting job sites before, during and after each rain event and conduct annual inspections of all Post Construction Treatments and Stormwater Pollution Prevention Plan(SWPPP)compliance. • Respond to public inquiries or complaints in a timely manner. • Provide aid and information to other City Divisions and Departments, including Community Development, Building, Capital Improvements, City Attorney's Office, Public Works Maintenance and Operations and Parks and Recreation as needed to facilitate private developments and public infrastructure projects. Adopted Budget On June 9, 2022, City Council approved a budget of$1,471,996 for the Plan Review program. This represents a decrease of$386,555(-20.8%)from the FY 2021-22 Adopted Budget. FY 2022-23 Adopted Budget Public Works 466 The decrease is due to a reduction in special projects that vary from year to year and salary and benefits due to a reallocation of staff and cost allocation. Special Projects The following table shows the special projects for the fiscal year. Special Projects Appropriation Revenue Funding Source Description Blackberry Farm Pole inspection and Golf Course Netting $6,000 $6,000 General Fund condition Support Inspection assessment report to assure public safety. Total $6,000 $6,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $77,209 $68,394 $44,804 $121,928 Charges for Services $970,777 $1,353,508 $939,133 $1,285,510 Miscellaneous Revenue $5,365 $2,838 $4,431 $910 Total Revenues $1,053,351 $1,424,740 $988,368 $1,408,348 Expenditures Employee Compensation $752,058 $863,846 $743,036 $718,055 Employee Benefits $298,223 $342,003 $337,402 $334,194 Materials $3,567 $4,178 $9,654 $10,008 Contract Services $50,198 $38,721 $117,289 $121,746 Cost Allocation $177,337 $323,847 $398,005 $278,699 Special Projects $74,622 $61,350 $250,000 $6,000 Contingencies $- $- $3,165 $3,294 Total Expenditures $1,356,005 $1,633,945 $1,858,551 $1,471,996 Fund Balance $- $- $- $- General Fund Costs $302,655 $209,206 $870,183 $63,648 FY 2022-23 Adopted Budget Public Works 467 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ASSISTANT ENGINEER 0.50 0.50 0 0 ASSIST DIR OF PW ENGINEER 0 0.35 0.35 0.20 ENGINEERING TECHNICIAN 1.00 1.00 1.00 1.00 PUBLIC WORKS INSPECTOR 1.00 0.90 0.90 0.90 PUBLIC WORKS PROJECT 1.00 0.25 0 0 MANAGER SENIOR CIVIL ENGINEER 2.00 2.00 2.00 2.00 Total 5.50 5.00 4.25 4.10 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Public Works 468 CIP Administration Budget Unit 100-82-806 General Fund-Developmental Services-CIP Administration Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $1,804,405 Fund Balance $- General Fund Costs $1,804,405 %Funded by General Fund 100.0% Total Staffing 7.5 FTE Program Overview The Capital Improvement Program(CIP)Division plans,manages, and implements improvements to city land, parks, building and infrastructure. These projects are derived from resident input, master plans, needs assessments, interdepartmental requirements, maintenance of the City's facilities, and innovations in our understandings of how the facilities can best serve our population. The division undertakes all aspects of project implementation, including contract administration for design, construction, and overall project management. Project types include,but are not limited to streets, sidewalks, storm drainage, buildings, parks, bicycle and pedestrian improvements and other public facilities.Responsibilities also include claims avoidance, environmental and regulatory compliance and monitoring, and the development of the annual budget and program scope. Service Objectives • Ensure that all public improvements are designed and constructed in accordance with community expectations and City standards. • Place safety of the general public, City employees and workers as the highest priority in the delivery of capital projects. • Respond to public inquiries or complaints in a timely manner. Adopted Budget On June 9, 2022, City Council approved a budget of $1,804,405 for the CIP Administration program. This represents an increase of$48,556(2.8%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. The increase is due to new employees being hired to fill vacant positions. FY 2022-23 Adopted Budget Public Works 469 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $485,581 $530,440 $1,186,046 $1,202,186 Employee Benefits $209,583 $234,724 $554,709 $581,245 Materials $6,553 $8,042 $14,726 $20,462 Contract Services $3,950 $- $- $- Cost Allocation $72,239 $- $- $- Contingencies $- $ - $368 $512 Total Expenditures $777,906 $773,206 $1,755,849 $1,804,405 Fund Balance $- $- $- $- General Fund Costs $777,906 $773,206 $1,755,849 $1,804,405 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ASSISTANT ENGINEER 1.00 0 0.50 0.50 ASSIST DIR OF PW ENGINEER 0 0.20 0.20 0.20 CIP MANAGER 1.00 1.00 1.00 1.00 PARK RESTOR&IMPROV MNGR 1.00 0 0 0 PUBLIC WORKS PROJECT MANAGER 2.00 3.00 4.25 5.25 PUBLIC WORKS PROJECT MANAGER 1.00 1.50 1.50 0.50 LT Total 6.00 5.70 7.45 7.45 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 470 Service Center Administration Budget Unit 100-83-807 General Fund-Service Center-Service Center Administration Budget at a Glance 2023 Adopted Budget Total Revenues $216,589 Total Expenditures $1,290,762 Fund Balance $- General Fund Costs $1,074,173 %Funded by General Fund 83.2% Total Staffing 3.3 FTE Program Overview The Service Center Administration program manages Public Works maintenance operations that include the major divisions of streets, grounds, trees and medians, facilities and fleet, as well as the minor divisions of signs/markings, storm drain, sidewalk, curb and gutter, trails, overpasses and storm water;provides customer service to the general public; provides administrative support for maintenance staff, supervisors, and management; general training prioritization; assignment of service calls; provides oversight of various contracted services including street sweeping, janitorial and a wide variety of maintenance and minor public works contracts; manages the sheriff's work furlough program 7 days per week; and collaborates with Public Works Engineering for asset improvements beyond routine maintenance. Service Objectives • Create a positive environment that fosters efficiency and innovation for service center employees. • Ensure proper documentation and inventory of trees, sidewalk repair, striping and legends, street signs, vehicle and equipment,streetlights and stormwater pollution. • Maintain records of all complaints and requests for services by tracking responses through computer programs and written service request forms. • Process the payments for all services and materials generated through the Service Center. • Maintain productivity units of measure for key tasks performed. • Support Public Works Engineering in the collection of field data, review of improvement drawings and development of capital improvement projects. • Maintain,lead and implement all elements of the Injury and Illness Prevention Program. . Maintain positive,accountable relations with employee bargaining groups. Adopted Budget On June 9,2022, City Council approved a budget of$1,290,762 for the Service Center Administration program. This represents an increase of$36,037(2.9%)from the FY 2021-22 Adopted Budget. FY 2022-23 Adopted Budget Public Works 471 The increase is due to special projects that vary in costs from year to year and salary and benefit costs. Compensation and benefits increased due to a department reorganization. Contract services decreased while Special Projects increased because the office reconfiguration project is being allocated to Special Projects for improved tracking. Special Projects The following table shows the special projects for the fiscal year. Project Appropriation Revenue Funding Source Description Office Citywide office Reconfiguration $77,850 $77,850 General Fund reconfiguration Total $77,850 $77,850 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $39,462 $33,968 $62,933 $78,924 Miscellaneous Revenue $68,832 $12,759 $35,741 $137,665 Total Revenues $108,294 $46,727 $98,674 $216,589 Expenditures Employee Compensation $423,063 $421,356 $448,436 $469,248 Employee Benefits $178,211 $187,706 $228,399 $238,582 Materials $225,982 $129,129 $150,357 $186,561 Contract Services $9,442 $14,939 $92,973 $18,656 Cost Allocation $482,408 $331,330 $328,477 $294,735 Special Projects $112,112 $7,519 $- $77,850 Contingencies $- $- $6,083 $5,130 Total Expenditures $1,431,218 $1,091,979 $1,254,725 $1,290,762 Fund Balance $- $- $- $- General Fund Costs $1,322,924 $1,045,252 $1,156,051 $1,074,173 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 472 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ADMINISTRATIVE ASSISTANT 1.00 1.00 1.00 1.00 ASSIST DIR OF PW ENGINEER 0.50 0.35 0.35 0.10 ASSIST DIR PUBLIC WORKS OPS 0 1.00 1.00 1.00 MANAGEMENT ANALYST 0.15 0.15 0.15 0.15 SERVICE CENTER 1.00 0 0 0 SUPERINTENDENT SR OFFICE ASSISTANT 1.00 1.00 1.00 1.00 Total 3.65 3.50 3.50 3.25 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Public Works 473 McClellan Ranch Park Budget Unit 100-84-808 General Fund-Grounds-McClellan Ranch Park Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $235,194 Fund Balance $- General Fund Costs $235,194 %Funded by General Fund 100.0% Total Staffing 0.4 FTE Program Overview McClellan Ranch Park is one of 19 parks and open space areas managed by the Grounds Division of the Public Works Department. Service Objectives • The main objective of the Grounds Division is to provide the residents of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. • Provide daily general clean up,trash removal,and graffiti removal. • Provide twice annually the mowing of fire breaks per Fire Marshal request in a manner in which wildlife is least impacted. . Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup. • Provide logistical support to the Parks&Recreation Department for all of the City's special events. Adopted Budget On June 9, 2022, City Council approved a budget of $235,194 for the McClellan Ranch Park program. This represents an increase of$47,372(25.2%)from the FY 2021-22 Adopted Budget. The increase is mainly due to a special project. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Public Works 474 Special Project Appropriation Revenue Funding Source Description McClellan Ranch Pedestrian Bridge Pedestrian bridge Decking $70,000 $70,000 General Fund repair at McClellan Ranch Preserve Replacement Total $70,000 $70,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues $- $- $- $- Expenditures Employee Compensation $34,057 $38,567 $41,060 $41,547 Employee Benefits $15,752 $19,812 $22,844 $23,502 Materials $10,150 $19,879 $20,289 $21,638 Contract Services $12,100 $16,872 $16,242 $16,860 Cost Allocation $18,545 $42,081 $55,724 $60,685 Special Projects $- $- $30,000 $70,000 Contingencies $- $- $1,663 $962 Total Expenditures $90,604 $137,211 $187,822 $235,194 Fund Balance $- $- $- $- General Fund Costs $90,603 $137,211 $187,822 $235,194 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0 0.20 0.20 0.20 MAINTENANCE WORKER III 0.20 0.10 0.10 0.10 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.30 0.40 0.40 0.40 FY 2022-23 Adopted Budget Public Works 475 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 476 Memorial Park Budget Unit 100-84-809 General Fund-Grounds-Memorial Park Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $871,977 Fund Balance $- General Fund Costs $871,977 %Funded by General Fund 100.0% Total Staffing 2.5 FTE Program Overview Memorial Park is one of 19 parks and open space areas managed by the Grounds Division of the Public Works Department.Memorial Park is the largest and most utilized park in Cupertino. Service Objectives • The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. • Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and basic play structure inspections and maintenance. • Provide weekly maintenance that may include mowing and edging of turf areas, tennis court cleaning and general maintenance,basketball court maintenance and programmed play structure inspections and maintenance. • Provide quarterly maintenance that may include fertilization applications, aerating, over-seeding, top dressing,and pruning of trees and shrubs. • Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications,playground woodchip replenishing and preparation of athletic fields for seasonal use. • Maintain all playgrounds in accordance with California playground safety requirements. • Minimize the negative effects of waterfowl to park patrons. • Reduce water consumption wherever practicable. • Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup. • Provide logistical support to the Parks&Recreation Department for all the City's special events. Adopted Budget On June 9, 2022, City Council approved a budget of$871,977 for the Memorial Park program. This represents an increase of$3,000(0.3%)from the FY 2021-22 Adopted Budget. FY 2022-23 Adopted Budget Public Works 477 The budget is relatively unchanged from last fiscal year. The increase in Materials is due to increases in water and utility rates. The increase in Contract Services is due to playground surfacing. The increase in Special Projects is due to a project to replace damaged tiles at the Veteran's Memorial.The decrease in Cost Allocation expenses is due to fewer recruitments in FY 2020-21. Special Projects The following table shows the special projects for the fiscal year. Project Appropriation Revenue Funding Source Description Veteran's Memorial Replace damaged Maintenance $15,000 $15,000 General Fund tiles at the Veteran's Memorial Total $15,000 $15,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues $- $- $- $- Expenditures Employee Compensation $235,356 $193,675 $209,111 $214,050 Employee Benefits $112,387 $106,269 $120,481 $124,783 Materials $154,553 $153,017 $209,660 $223,959 Contract Services $20,681 $40,885 $30,146 $39,616 Cost Allocation $153,681 $258,949 $293,608 $247,980 Special Projects $- $- $- $15,000 Contingencies $- $- $5,971 $6,589 Total Expenditures $676,658 $752,795 $868,977 $871,977 Fund Balance $- $- $- $- General Fund Costs $676,657 $752,795 $868,977 $871,977 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 478 Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 2.40 2.20 2.20 2.20 MAINTENANCE WORKER III 0.40 0.20 0.20 0.20 PUBLIC WORKS SUPERVISOR 0.20 0.10 0.10 0.10 Total 3.00 2.50 2.50 2.50 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 479 BBF Ground Maintenance Budget Unit 100-84-811 General Fund-Grounds-BBF Ground Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $298,534 Fund Balance $- General Fund Costs $298,534 %Funded by General Fund 100.0% Total Staffing 1.0 FTE Program Overview Blackberry Farm is managed by the Grounds Division of the Public Works Department. Service Objectives • The main objective of the Grounds Division is to provide the residents of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. • Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and basic play structure inspections and maintenance. . Provide weekly maintenance that may include mowing and edging of turf areas and programmed play structure inspections and maintenance. • Provide quarterly maintenance that may include fertilization applications, aerating, over-seeding, top dressing,and pruning of trees and shrubs. • Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications,playground woodchip replenishing and preparation of athletic fields for seasonal use. • Maintain all playgrounds in accordance with California playground safety requirements. • Reduce water consumption wherever practicable. . Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup. • Provide logistical support to the Parks&Recreation Department for all the City's special events. Adopted Budget On June 9, 2022, City Council approved a budget of$298,534 for the BBF Ground Maintenance program. This represents an increase of$24,743(9.0%)from the FY 2021-22 Adopted Budget. This increase is due to increases in Materials, Cost Allocation, and one-time special projects that vary from year to year. Those increases are offset by decreases in compensation and benefits due to a decrease in part-time staff. Cost Allocation expenses increased due to a recruitment in FY 2020-21. FY 2022-23 Adopted Budget Public Works 480 Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Blackberry Farm Pedestrian bridge Pedestrian Bridge $30,000 $30,000 General Fund repair at Blackberry Decking Farm to Scenic Replacement Circle Total $30,000 $30,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues $- $- $- $- Expenditures Employee Compensation $- $86,310 $123,044 $94,256 Employee Benefits $- $46,099 $55,199 $55,953 Materials $- $6,698 $992 $5,020 Contract Services $- $44,098 $32,323 $45,740 Cost Allocation $- $- $46,025 $66,296 Special Projects $- $- $15,000 $30,000 Contingencies $- $- $1,208 $1,269 Total Expenditures $- $183,205 $273,791 $298,534 Fund Balance $- $- $- $- General Fund Costs $- $183,204 $273,791 $298,534 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 481 Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0 0.80 0.80 0.80 MAINTENANCE WORKER III 0 0.10 0.10 0.10 PUBLIC WORKS SUPERVISOR 0 0.10 0.10 0.10 Total 0 1.00 1.00 1.00 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 482 School Site Maintenance Budget Unit 100-84-812 General Fund-Grounds-School Site Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $144,000 Total Expenditures $1,630,018 Fund Balance $- General Fund Costs $1,486,018 %Funded by General Fund 91.2% Total Staffing 4.2 FTE Program Overview Under a joint use agreement with Cupertino Union School District, nine athletic fields and landscape areas, constituting approximately 52 acres, are managed by the Grounds Division of the Public Works Department. These sites include Hyde and Kennedy Middle Schools, Collins, Eaton, Lincoln, Regnart, Faria, Stevens Creek and Garden Gate Elementary Schools. Service Objectives • The main objective of the Grounds Division is to provide the residents of Cupertino with the cleanest and safest recreational areas/athletic fields in the Bay Area. • Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and other maintenance. • Provide weekly maintenance that may include mowing and edging of turf areas and other maintenance. • Provide quarterly maintenance that may include fertilization, aerating, over-seeding, top dressing, and pruning of trees and shrubs. • Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications and preparing athletic fields for seasonal use. . Maintain school sites for recreational activities including soccer,baseball,cricket,track and field,softball and a variety of other sports. • Reduce water consumption wherever practicable. . Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup. • Provide logistical support to the Park and Recreation Department for all the City's special events. Adopted Budget On June 9, 2022, City Council approved a budget of$1,630,018 for the School Site Maintenance program. This represents an increase of$30,035(1.9%)from the FY 2021-22 Adopted Budget. FY 2022-23 Adopted Budget Public Works 483 This increase is due to increases in Materials and Contract Services and is offset by decreases in cost allocation and special projects that vary from year to year. Materials are increasing due to higher electricity and water rates. Contract Services are increasing due to tree maintenance and fence repairs. Cost Allocation expenses are decreasing due to lower IT costs in FY 2020-21. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $138,336 $141,505 $149,448 $144,000 Total Revenues $138,336 $141,505 $149,448 $144,000 Expenditures Employee Compensation $356,085 $309,602 $367,708 $364,719 Employee Benefits $185,109 $177,360 $222,111 $226,260 Materials $322,980 $353,253 $553,569 $602,397 Contract Services $15,655 $34,081 $14,816 $30,413 Cost Allocation $206,111 $346,606 $421,419 $390,409 Special Projects $- $33,787 $6,000 $- Contingencies $ - $- $14,360 $ 15,820 Total Expenditures $1,085,940 $1,254,689 $1,599,983 $1,630,018 Fund Balance $- $- $- $- General Fund Costs $947,604 $1,113,184 $1,450,535 $1,486,018 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 3.70 3.40 3.40 3.40 MAINTENANCE WORKER III 0.40 0.60 0.60 0.60 PUBLIC WORKS SUPERVISOR 0.20 0.20 0.20 0.20 Total 4.30 4.20 4.20 4.20 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Public Works 484 Neighborhood Parks Budget Unit 100-84-813 General Fund-Grounds-Neighborhood Parks Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $2,687,196 Fund Balance $- General Fund Costs $2,687,196 %Funded by General Fund 100.0% Total Staffing 8.6 FTE Program Overview Neighborhood Parks include 13 of the 19 parks and open space areas managed by the Grounds Division of the Public Works Department.Neighborhood park sites include Linda Vista,Mary Avenue Dog Park,Monta Vista, Portal, Somerset, Varian, Wilson, Three Oaks, Hoover, Canyon Oak (Little Rancho), Franco Park, Sterling/Barnhart,and Oak Valley. Service Objectives • The main objective of the Grounds Division is to provide the residents of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. • Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and basic play structure inspections and maintenance. • Provide weekly maintenance that may include mowing and edging of turf areas, tennis court cleaning and general maintenance,basketball court maintenance and programmed play structure inspections and maintenance. . Provide quarterly maintenance that may include fertilization applications, aerating, over-seeding, top dressing,and pruning of trees and shrubs. • Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications,playground woodchip replenishing and prepare athletic fields for seasonal use. • Maintain all playgrounds in accordance with California playground safety requirements. . Reduce water consumption wherever practicable. • Utilize Weekend Work furlough program as needed to assist in weekend and weekday cleanup. • Provide logistical support to the Parks&Recreation Department for all the City's special events. Adopted Budget On June 9, 2022, City Council approved a budget of $2,687,196 for the Neighborhood Parks program. This represents an increase of$39,916(1.5%)from the FY 2021-22 Adopted Budget. FY 2022-23 Adopted Budget Public Works 485 The budget is relatively unchanged from last fiscal year.The increase in Materials is due to increased water and utility costs. The increase in Contract Services is due to playground resurfacing. Special Projects are increasing as described below. The increases are offset by a decrease in Cost Allocation expenses due to lower IT costs in FY 2020-21. Special Projects The following table shows the special projects for the fiscal year. Special Projects Appropriation Revenue Funding Source Description Portal Park Concrete $35,000 General Fund Trip hazard repairs. Replacement/Repairs $35,000 Wilson Park Replacement of Irrigation Pump $60,000 $60,000 General Fund irrigation pump at Replacement the end of its lifespan. Franco Park Solar Replacement of Powered Light current light Bollard $18,000 $18,000 General Fund bollards due to Replacement aging. Total $113,000 $113,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 486 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $595,490 $590,759 $688,772 $719,004 Employee Benefits $320,719 $320,203 $406,276 $397,232 Materials $330,612 $396,948 $540,771 $591,855 Contract Services $180,951 $155,209 $138,407 $159,918 Cost Allocation $363,239 $619,768 $820,200 $687,393 Special Projects $33,610 $- $35,000 $113,000 Contingencies $- $- $17,854 $18,794 Total Expenditures $1,824,621 $2,082,887 $2,647,280 $2,687,196 Fund Balance $- $- $- $- General Fund Costs $1,824,621 $2,082,887 $2,647,280 $2,687,196 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 7.70 7.80 7.80 7.80 MAINTENANCE WORKER III 0.40 0.60 0.60 0.60 PUBLIC WORKS SUPERVISOR 0.20 0.20 0.20 0.20 Total 8.30 8.60 8.60 8.60 There are no changes to the current level of staffing. FY 2022-23 Adopted Budget Public Works 487 Sport Fields Jollyman, Creekside Budget Unit 100-84-814 General Fund-Grounds-Sport Fields Jollyman,Creekside Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $881,604 Fund Balance $- General Fund Costs $881,604 %Funded by General Fund 100.0% Total Staffing 2.5 FTE Program Overview The sports fields at Jollyman and Creekside parks are among the 19 parks and open space areas managed by the Grounds Division of the Public Works Department. Sports fields at these two parks are heavily used and enjoyed by the community. Service Objectives • The main objective of the Grounds Division is to provide the citizens of Cupertino with the cleanest and safest recreational areas and sports fields in the Bay Area. • Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and other maintenance. • Provide weekly maintenance that may include mowing and edging of turf areas, programmed play structure inspections,and other maintenance. • Provide quarterly maintenance that may include fertilization applications, aerating, over-seeding, top dressing,and pruning of trees and shrubs. • Provide semi-annual maintenance that may include replacement of planting material, pre-emergent applications and preparing sports fields for seasonal use. • Maintain sports fields for recreational activities including soccer, baseball, cricket, track and field, softball and a variety of other sports. . Maintain all playgrounds in accordance with California playground safety requirements. • Reduce water consumption wherever practicable. • Utilize weekend work furlough program as needed to assist in weekend and weekday cleanup. • Provide logistical support to the Parks&Recreation Department for all the City's special events. Adopted Budget On June 9,2022, City Council approved a budget of$881,604 for the Sport Fields Jollyman,Creekside program. This represents a decrease of$44,146(4.8%)from the FY 2021-22 Adopted Budget. FY 2022-23 Adopted Budget Public Works 488 The budget is relatively unchanged from last fiscal year.The increase in Materials is due to increased water and utility costs. The increase in Contract Services is due to annual tree maintenance. The increases are offset by a decrease in Cost Allocation expenses due to lower IT costs in FY 2020-21. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $217,222 $193,998 $211,813 $204,306 Employee Benefits $108,278 $98,195 $110,638 $114,587 Materials $165,762 $178,657 $278,783 $304,683 Contract Services $31,539 $21,828 $7,335 $16,996 Cost Allocation $149,449 $238,074 $295,678 $232,990 Special Projects $10,000 $- $14,000 $- Contingencies $- $- $7,503 $8,042 Total Expenditures $682,250 $730,752 $925,750 $881,604 Fund Balance $- $- $- $- General Fund Costs $682,250 $730,752 $925,750 $881,604 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 2.50 2.00 2.00 2.00 MAINTENANCE WORKER III 0.40 0.30 0.30 0.30 PUBLIC WORKS SUPERVISOR 0.20 0.20 0.20 0.20 Total 3.10 2.50 2.50 2.50 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 489 Civic Center Maintenance Budget Unit 100-84-815 General Fund-Grounds-Civic Center Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $241,589 Total Expenditures $180,415 Fund Balance $- General Fund Costs $(61,174) %Funded by General Fund -33.9% Total Staffing 0.8 FTE Program Overview The Civic Center grounds are one of 19 parks and open space areas managed by the Grounds Division of the Public Works Department.Due to the close proximity to City Hall, Community Hall,and the Library,the Civic Center grounds are well utilized.Civic Center maintenance includes the adjacent Library Field. Service Objectives • The main objective of the Grounds Division is to provide the residents of Cupertino with the cleanest and safest recreational areas to enjoy in the Bay Area. • Provide daily general clean up, trash removal, graffiti removal, irrigation adjustments and repairs and other maintenance. • Provide weekly maintenance that may include mowing and edging of turf areas and general maintenance. • Provide quarterly maintenance that may include fertilization applications, aerating, over-seeding, top dressing,and pruning of trees and shrubs. • Provide semi-annual maintenance that may include replacement of planting material and pre-emergent applications. . Maintain Library Field for recreational activities including soccer,cricket and a variety of other sports. . Reduce water consumption wherever practicable. • Provide logistical support to all City Departments for special events. Adopted Budget On June 9, 2022, City Council approved a budget of$180,415 for the Civic Center Maintenance program. This represents a decrease of$334,745(-65.0%)from the FY 2021-22 Adopted Budget. The decrease is mainly due to an adjustment to better reflect the budgetary needs of this program. FY 2022-23 Adopted Budget Public Works 490 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $204,590 $250,996 $299,961 $241,589 Total Revenues $204,590 $250,996 $299,961 $241,589 Expenditures Employee Compensation $92,926 $73,323 $77,090 $76,795 Employee Benefits $48,044 $40,756 $45,689 $47,947 Materials $60,600 $67,892 $375,634 $54,315 Contract Services $- $6,080 $7,184 $- Cost Allocation $43,997 $- $- $- Contingencies $- $- $9,563 $1,358 Total Expenditures $245,567 $188,051 $515,160 $180,415 Fund Balance $- $- $- $- General Fund Costs $40,977 $ (62,946) $215,199 $ (61,174) Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/11 0.70 0.60 0.60 0.60 MAINTENANCE WORKER 111 0.20 0.10 0.10 0.10 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 1.00 0.80 0.80 0.80 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 491 Storm Drain Maintenance Budget Unit 100-85-818 General Fund-Streets-Storm Drain Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $- Fund Balance $- General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 0.0 FTE Program Overview In FY 2020-21,this program was transferred to the Environmental Programs Division.A complete discussion of this program can be found under Budget Unit 230-81-855. This program will remain in order to maintain historical data,however once all prior year data as listed in the table below is$0,this program will be removed. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 492 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $113,012 $342 - Employee Benefits $54,182 $1,791 - Materials $5,591 $3,364 - Contract Services $209,335 $- - Cost Allocation $47,104 $- Total Expenditures $429,224 $5,497 - Fund Balance $- $- General Fund Costs $429,225 $5,496 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.75 0 0 0 MAINTENANCE WORKER III 0.20 0 0 0 PUBLIC WORKS SUPERVISOR 0.25 0 0 0 Total 1.20 0 0 0 FY 2022-23 Adopted Budget Public Works 493 Sidewalk Curb and Gutter Budget Unit 270-85-820 Transportation Fund-Streets-Sidewalk Curb and Gutter Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $1,982,206 Fund Balance $(1,982,206) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 1.8 FTE Program Overview Maintain sidewalks, curb and gutter to a standard that is functional and improves accessibility and minimizes liability.Optimize the use of available funds by coordinating with other improvement projects. Service Objectives Timely maintain concrete improvements in response to citizen complaints and coordinate with programmed asphalt improvements. Adopted Budget On June 9,2022, City Council approved a budget of$1,982,206 for the Sidewalk Curb and Gutter program.This represents an increase of$113,303(6.1%)from the FY 2021-22 Adopted Budget. This increase is due to the reallocation of staff to this program and increased special project costs that vary from year to year. Special Projects The following table shows the special projects for the fiscal year. Special Projects Appropriation Revenue Funding Source Description Annual Sidewalk, Annual Sidewalk, Curb and Gutter $1,349,400 $1,349,400 Transportation Curb and Gutter Project Fund/General Fund Project Annual Sidewalk $103,800 $103,800 Transportation Annual Sidewalk Grinding Project Fund/General Fund Grinding Project Total $1,453,200 $1,453,200 FY 2022-23 Adopted Budget Public Works 494 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $- $8,970 $- $_ Total Revenues $- $8,970 $- $_ Expenditures Employee Compensation $139,588 $160,174 $173,207 $211,093 Employee Benefits $71,386 $77,481 $87,647 $ 112,768 Materials $9,110 $12,919 $16,320 $16,941 Contract Services $30,000 $60,900 $30,900 $32,074 Cost Allocation $69,677 $141,232 $159,648 $ 154,905 Special Projects $1,008,913 $899,796 $1,400,000 $ 1,453,200 Contingencies $- $- $ 1,181 $1,225 Total Expenditures $1,328,674 $1,352,502 $1,868,903 $1,982,206 Fund Balance $(1,107,675) $(1,343,532) $(1,868,903) $(1,982,206) General Fund Costs $221,000 $- $- $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.30 0.30 0.30 0.70 PUBLIC WORKS INSPECTOR 0.90 1.00 1.00 1.00 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 1.30 1.40 1.40 1.80 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Public Works 495 Street Pavement Maintenance Budget Unit 270-85-821 Transportation Fund-Streets-Street Pavement Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $1,720,800 Total Expenditures $4,587,213 Fund Balance $(2,866,413) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 4.7 FTE Program Overview This program maintains streets to a standard that balances preventative maintenance with stop-gap measures while minimizing liability. Service Objectives • Perform preventative maintenance activities of fog seal and crack fill. • Perform stop-gap maintenance of arterial,collector and residential streets. • Oversee and manage contracted pavement maintenance projects. Adopted Budget On June 9, 2022, City Council approved a budget of$4,587,213 for the Street Pavement Maintenance program. This represents a decrease of$209,856(4.4%)from the FY 2021-22 Adopted Budget. The decrease is mainly due to lower Contract Services and Cost Allocation expenses. Contract Services were higher last year due to fog seal and crack seal projects. Cost Allocation expenses decreased due to reduced Street Pavement Maintenance expenses in FY 2020-21. The decreases were partially offset by an increase in Compensation and Benefits due to the addition of a Maintenance Worker Lead. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Public Works 496 Special Project Appropriation Revenue Funding Source Description Annual Asphalt Project(Special Transportation Projects&Capital $3,217,800 $3,217,800 Fund/General Annual Asphalt Fund/SB1 Project Outlays) Total $3,217,800 $3,217,800 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $1,515,323 $2,155,612 $1,533,250 $1,719,146 Charges for Services $- $- $3,978 $1,654 Miscellaneous Revenue $24,291 $563,864 $87,057 $_ Total Revenues $1,539,614 $2,719,476 $1,624,285 $1,720,800 Expenditures Employee Compensation $301,014 $403,281 $449,590 $506,887 Employee Benefits $143,054 $192,104 $226,523 $258,935 Materials $21,445 $19,001 $36,591 $37,981 Contract Services $115,322 $- $552,632 $208,411 Cost Allocation $223,884 $347,464 $417,002 $351,039 Capital Outlays $978,379 $- $1,000,000 $1,038,000 Special Projects $2,560,653 $1,877,852 $2,100,000 $2,179,800 Contingencies $- $- $14,731 $6,160 Total Expenditures $4,343,751 $2,839,702 $4,797,069 $4,587,213 Fund Balance $ (2,804,136) $(120,227) $(3,172,784) $ (2,866,413) General Fund Costs $- $- $- $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 497 Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget MAINTENANCE WORKER I/II 2.65 2.65 2.65 2.40 MAINTENANCE WORKER III 0.30 0.25 0.25 1.25 PUBLIC WORKS INSPECTOR 0.05 0 0 0 PUBLIC WORKS PROJECT 0 0.75 0.75 0.75 MANAGER PUBLIC WORKS SUPERVISOR 0.30 0.30 0.30 0.30 STREET LIGHTING WORKER 0.05 0 0 0 Total 3.35 3.95 3.95 4.70 The increase in staffing is due to the addition of a Maintenance Worker Lead. This position will help meet the increasing demands and workload of the current lead worker. FY 2022-23 Adopted Budget Public Works 498 Street Sign Marking Budget Unit 270-85-822 Transportation Fund-Streets-Street Sign Marking Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $829,894 Fund Balance $(829,894) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 3.2 FTE Program Overview This program maintains street regulatory and informational signs, street striping, markings, and legends, as well as removes graffiti within street right-of-way in a timely manner. Service Objectives • Respond to regulatory and informational sign issues in a timely manner. • Coordinate and respond to work orders from the Traffic Engineer. . Maintain street sign and traffic marking assets in compliance with the Manual of Uniform Traffic Control Devices. • Remove graffiti in a timely manner. Adopted Budget On June 9, 2022, City Council approved a budget of $829,894 for the Street Sign Marking program. This represents a decrease of$71,971 (-8.0%)from the FY 2021-22 Adopted Budget. The decrease is mainly due to the Cost Allocation Plan, reduced salary and benefits, contract services and special project costs that vary from year to year. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Holiday Banner Replace 100 aging Replacement $10,300 $10,300 General Fund holiday banners Total $10,300 $10,300 FY 2022-23 Adopted Budget Public Works 499 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $505 $ - $- $- Miscellaneous Revenue $594 $805 $- $- Total Revenues $1,099 $805 $- $- Expenditures Employee Compensation $290,588 $286,237 $309,427 $287,785 Employee Benefits $148,667 $157,983 $182,761 $156,401 Materials $126,033 $122,402 $136,534 $141,723 Contract Services $60 $- $26,523 $21,218 Cost Allocation $122,018 $206,819 $242,544 $208,393 Special Projects $- $12,513 $- $10,300 Contingencies $- $- $4,076 $4,074 Total Expenditures $687,366 $785,954 $901,865 $829,894 Fund Balance $(686,268) $(785,150) $(901,865) $ (829,894) General Fund Costs $- $- $- $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 3.00 3.00 3.00 2.75 MAINTENANCE WORKER III 0.20 0.20 0.20 0.20 PUBLIC WORKS INSPECTOR 0.05 0 0 0 PUBLIC WORKS SUPERVISOR 0.20 0.20 0.20 0.20 STREET LIGHTING WORKER 0.05 0 0 0 Total 3.50 3.40 3.40 3.15 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Public Works 500 Street Lighting Budget Unit 100-85-848 General Fund-Streets-Street Lighting Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $ 1,024,841 Fund Balance $- General Fund Costs $1,024,841 %Funded by General Fund 100.0% Total Staffing 1.1 FTE Program Overview Maintain city-owned streetlights(2,950),parking lot lights and park lighting. Service Objectives • Respond to outages in a timely manner. • Conserve electricity through the conversion of older less efficient light technology to current and tested technologies. • Replace direct buried wiring with wiring in conduits as failures occur. Adopted Budget On June 9,2022, City Council approved a budget of$1,024,841 for the Street Lighting program. This represents an increase of$36,521 (3.7%)from the FY 2021-22 Adopted Budget. This increase is due to increases in Materials and Cost Allocation. Materials are increasing due to a 20% increase in electricity rates.Cost Allocation expenses are increasing due to a recruitment in FY 2020-21. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Public Works 501 Special Projects Appropriation Revenue Funding Source Description Street Light Pole Ongoing project to Replacement $213,000 $213,000 General Fund replace aging street light poles Service Center Upgrade 12 exterior Exterior Building $8,300 $8,300 General Fund building lights to LED Fixtures LED technology Total $221,300 $221,300 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Miscellaneous Revenue $3,990 $23,262 $- $- Total Revenues $3,990 $23,262 $- $- Expenditures Employee Compensation $150,344 $101,322 $122,335 $126,377 Employee Benefits $73,691 $48,833 $59,797 $63,279 Materials $298,228 $314,562 $295,599 $356,776 Contract Services $110,632 $80,595 $63,329 $64,120 Cost Allocation $49,730 $127,431 $136,287 $182,467 Special Projects $150,551 $151,413 $302,000 $221,300 Contingencies $- $- $8,973 $10,522 Total Expenditures $833,176 $824,156 $988,320 $1,024,841 Fund Balance $- $- $- $- General Fund Costs $829,187 $800,894 $988,320 $1,024,841 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 502 Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget PUBLIC WORKS SUPERVISOR 0.05 0.05 0.05 0.05 STREET LIGHTING WORKER 0.90 1.00 1.00 1.00 Total 0.95 1.05 1.05 1.05 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 503 Equipment Maintenance Budget Unit 630-85-849 Vehicle/Equip Replacement-Streets-Equipment Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $1,568,633 Total Expenditures $1,594,350 Fund Balance $(25,717) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 3.0 FTE Program Overview The Fleet Division maintains all fleet equipment, including small power equipment. Equipment includes vehicles (103) and all power equipment (689). Equipment includes trailers, mowers and other equipment required to maintain the City's infrastructure. The division also manages above ground fuel storage tank at Service Center. Service Objectives . Maintain all city vehicles and equipment to reduce operating costs and increase safety. • Fabricate,weld and repair equipment that includes vehicles, apparatus,structures, facilities for function and safety. . Develop specifications and bid per City policy the purchases of trucks, tractors and other significant equipment. • Maintain surplus vehicles and other equipment per City policy. • Ensure all vehicles conform to State of California emission regulations. • Maintain/inspect above ground fuel tanks as required. • Maintain accurate inventory of fleet/equipment assets. . Maintain a safe and clean working environment be approved for the equipment mechanics and welding. Adopted Budget On June 9, 2022, City Council approved a budget of$1,594,350 for the Equipment Maintenance program. This represents an increase of$37,306(2.4%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. Materials are increasing by CPI. Contract Services are increasing due to increased costs for existing contracts. FY 2022-23 Adopted Budget Public Works 504 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $1,352,200 $1,633,518 $1,718,598 $1,568,633 Miscellaneous Revenue $- $9,799 $- $- Total Revenues $1,352,200 $1,643,317 $1,718,598 $1,568,633 Expenditures Employee Compensation $277,828 $302,043 $306,916 $309,791 Employee Benefits $179,355 $128,657 $161,739 $166,150 Materials $265,631 $288,859 $305,712 $317,706 Contract Services $60,398 $75,743 $106,602 $120,697 Cost Allocation $812,995 $669,046 $665,797 $669,046 Contingencies $- $- $10,278 $10,960 Total Expenditures $1,596,207 $1,464,348 $1,557,044 $1,594,350 Fund Balance $(244,007) $184,969 $527,554 $(25,717) General Fund Costs $- $6,000 $366,000 $- Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget EQUIPMENT MECHANIC 1.00 1.00 1.00 1.00 LEAD EQUIPMENT MECHANIC 1.00 1.00 1.00 1.00 MAINTENANCE WORKER I/II 1.00 1.00 1.00 1.00 Total 3.00 3.00 3.00 3.00 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 505 Environmental Materials Budget Unit 100-85-850 General Fund-Streets-Environmental Materials Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $224,137 Fund Balance $- General Fund Costs $224,137 %Funded by General Fund 100.0% Total Staffing 0.7 FTE Program Overview This program manages Service Center solid waste disposal, Service Center safety inspections, handling/disposal/reporting of City generated hazardous waste and materials — including waste that may be illegally deposited upon the right-of-way. Provide street cleaning for unforeseen events such as debris from trucks or other sources. Service Objectives • Coordinate disposal of solid waste. . Adhere to the requirements of hazardous waste/materials storage,handling and reporting. • Comply with Fire Marshal safety inspection requirements for Service Center facilities. . Inspect and maintain below ground fuel tanks as required. • Clean up traffic debris that may become deposited on streets while reducing traffic hazards. Adopted Budget On June 9, 2022, City Council approved a budget of $224,137 for the Environmental Materials program. This represents an increase of$6,441 (3.0%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 506 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $60,650 $64,875 $66,061 $70,166 Employee Benefits $28,786 $31,381 $35,191 $36,761 Materials $36,039 $38,946 $48,706 $54,533 Contract Services $3,575 $5,442 $- $- Cost Allocation $53,909 $57,136 $66,520 $61,314 Contingencies $- $- $1,218 $1,363 Total Expenditures $182,959 $197,780 $217,696 $224,137 Fund Balance $- $- $- $- General Fund Costs $182,959 $197,781 $217,696 $224,137 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.30 0.30 0.30 0.35 MAINTENANCE WORKER III 0.25 0.25 0.25 0.25 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.65 0.65 0.65 0.70 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Public Works 507 Trail Maintenance Budget Unit 100-86-261 General Fund-Trees and Right of Way-Trail Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $232,764 Fund Balance $- General Fund Costs $232,764 %Funded by General Fund 100.0% Total Staffing 1.2 FTE Program Overview The Trails Maintenance Program maintains about 3 linear miles of trails including the adjacent landscape at the Don Burnett Bridge and the Lawrence Trail. Historically the maintenance of this program has been funded out of Medians and Overpasses Program (824) Expansion of trails in the city has made it necessary to separate out trail's maintenance. Service Objectives . Maintain and improve trails in the public right-of-ways including the landscaped areas on the approach to the Don Burnett Bridge and the Lawrence Trail. . Maintain clean and safe ingress and egress on all city-maintained trails. . Meet all Department of Pesticide Regulation requirements for weed and pest control. • Timely pruning of trees and plants to promote healthy landscapes, maximize aesthetics and to reduce future maintenance requirements. • Timely removal of trash and graffiti. Adopted Budget On June 9,2022,City Council approved a budget of$232,764 for the Trail Maintenance program. This is a new program for FY 2022-23. Staff was reallocated from other Trees and Right of Way Division programs. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 508 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $- $ - $- $130,244 Employee Benefits $- $ - $- $62,880 Materials $- $ - $- $10,392 Contract Services $- $- $- $28,281 Contingencies $- $- $- $967 Total Expenditures $- $- $- $232,764 Fund Balance $- $- $- $- General Fund Costs $- $- $- $232,764 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0 0 0 0.90 MAINTENANCE WORKER III 0 0 0 0.15 PUBLIC WORKS SUPERVISOR 0 0 0 0.10 Total 0 0 0 1.15 Staff was reallocated from other Trees and Right of Way Division programs. FY 2022-23 Adopted Budget Public Works 509 Overpasses and Medians Budget Unit 100-86-824 General Fund-Trees and Right of Way-Overpasses and Medians Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $1,802,896 Fund Balance $- General Fund Costs $1,802,896 %Funded by General Fund 100.0% Total Staffing 6.3 FTE Program Overview The Overpasses and Medians program maintains 31.67 developed acres of median island hardscapes and softscapes as well as 21.69 undeveloped acres of city right-of-way, the landscaped area of the Lawrence trail, and the landscaped area of the Don Burnett Bridge. Service Objectives • Maintain and improve median islands,landscape strips,trails,landscaped roadsides and public right-of- ways. • Maintain and improve water efficient programming of irrigation systems. • Meet all Department of Pesticide Regulation requirements for weed and pest control. • Timely pruning of plant material to promote plant health, maximize aesthetics and to reduce future maintenance requirements. • Plant and care for new plant stock to help ensure future plant health and reduce future maintenance requirements. • Conserve water through the planting of appropriate plant stock. Adopted Budget On June 9, 2022, City Council approved a budget of$1,802,896 for the Overpasses and Medians program. This represents an increase of$151,061 (9.1%)from the FY 2021-22 Adopted Budget. This increase is due mainly to an increase in Special Projects. Benefits are increasing due to the reallocation of staffing.Cost Allocation expenses are decreasing due to lower IT costs and fewer recruitments in FY 2020-21. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Public Works 510 Special Projects Appropriation Revenue Funding Source Description Split Rail Fence Split Rail Fence Replacement on Replacement on Stevens Creek Blvd $16,400 $16,400 General Fund Stevens Creek Blvd and Mary Ave and Mary Ave Trench work to Trench Work $40,000 $40,000 General Fund install electrical conduit on Homestead Ave Remove median Mound Removal $141,900 $141,900 General Fund mound and install water efficient landscaping Total $198,300 $198,300 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $54 $- $- $- Miscellaneous Revenue $25,151 $- $- $- Total Revenues $25,205 $- $- $- Expenditures Employee Compensation $459,097 $507,838 $542,333 $553,984 Employee Benefits $238,883 $264,147 $296,529 $331,331 Materials $186,681 $197,886 $208,572 $210,929 Contract Services $142,709 $15,312 $55,731 $45,614 Cost Allocation $273,248 $491,649 $542,062 $456,324 Special Projects $- $- $- $198,300 Contingencies $- $- $6,608 $6,414 Total Expenditures $1,300,618 $1,476,832 $1,651,835 $1,802,896 Fund Balance $- $- $- $- General Fund Costs $1,275,412 $1,476,831 $1,651,835 $1,802,896 FY 2022-23 Adopted Budget Public Works 511 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 5.00 5.00 5.00 5.10 MAINTENANCE WORKER III 1.00 1.00 1.00 0.85 PUBLIC WORKS SUPERVISOR 0.30 0.30 0.30 0.30 Total 6.30 6.30 6.30 6.25 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Public Works 512 Street Tree Maintenance Budget Unit 100-86-825 General Fund-Trees and Right of Way-Street Tree Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $16,826 Total Expenditures $1,681,931 Fund Balance $- General Fund Costs $1,726,245 %Funded by General Fund 102.6% Total Staffing 7.4 FTE Program Overview The Trees Division maintains the safety, health and appearance of approximately 23,300 Street and Right-of- Way trees, as well as promotes disease-free trees to enhance the City's urban forest. Service Objectives • Proactively perform the activities of trimming, staking, pest management and other tree health-related functions. • Respond to citizen requests to perform the trimming or other tree health-related services in a timely manner. • Remove diseased and damaged trees as needed. • Plant replacement trees for trees removed due to disease and damage. . Continue activities to maintain standing as a Tree City USA program. • Update the forestry work plan as needed to establish goals and objectives of the tree maintenance program for the City. • Oversee street tree maintenance and removal contracts. Adopted Budget On June 9, 2022, City Council approved a budget of$1,681,931 for the Street Tree Maintenance program. This represents a decrease of$248,501 (-12.9%)from the FY 2021-22 Adopted Budget. The decrease is due to the Cost Allocation Plan, reallocation of positions, and special project costs that vary from year to year.Cost Allocation expenses are decreasing due to no recruitments in FY 2020-21. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Public Works 513 Special Project Appropriation Revenue Funding Source Description Planting and replacement cost of Trees and Badges $15,000 $15,000 Tree Fund Fees within the Right of Way and other areas throughout the City Total $15,000 $15,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $7,737 $11,727 $16,210 $ 16,826 Total Revenues $7,737 $11,727 $16,210 $16,826 Expenditures Employee Compensation $588,720 $675,164 $713,778 $636,157 Employee Benefits $305,112 $370,406 $422,520 $371,175 Materials $53,262 $92,730 $114,663 $112,961 Contract Services $2,325 $13,120 $9,792 $10,164 Cost Allocation $274,584 $531,588 $625,568 $533,396 Special Projects $20,876 $14,475 $40,000 $15,000 Contingencies $- $- $4,111 $3,078 Total Expenditures $1,244,879 $1,697,483 $1,930,432 $1,681,931 Fund Balance $- $- $- $- General Fund Costs $1,237,142 $1,700,755 $1,959,222 $1,726,245 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 514 Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 7.00 7.00 7.00 6.00 MAINTENANCE WORKER III 1.00 1.00 1.00 1.00 PUBLIC WORKS SUPERVISOR 0.40 0.40 0.40 0.40 Total 8.40 8.40 8.40 7.40 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Public Works 515 Sheriff Work Program Budget Unit 100-86-826 General Fund-Trees and Right of Way-Sheriff Work Program Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $541,776 Fund Balance $- General Fund Costs $541,776 %Funded by General Fund 100.0% Total Staffing 2.2 FTE Program Overview The Sheriff Work Program supplements existing Service Center staffing with individuals in a sentencing alternative program. Participants of the program perform manual labor type duties. The work performed by this program reduces the number of full-time maintenance workers required. Service Objectives • Efficiently administer and schedule the Sheriff Work Program for a variety of non-skilled activities, including trash pick-up,weed control,right-of-way maintenance and sandbag filling. . Offset manual work currently performed by skilled labor so as to increase overall productivity at the Service Center. Adopted Budget On June 9, 2022, City Council approved a budget of $541,776 for the Sheriff Work Program program. This represents a decrease of$30,239(-5.3%)from the FY 2021-22 Adopted Budget. This decrease is due to a decrease in compensation and Cost Allocation. Compensation and benefits are decreasing due to a reallocation of positions. Cost Allocation expenses are decreasing due to lower IT costs in FY 2020-21.Contracts Services is increasing due to the addition of portable restroom and handwashing stations. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 516 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Employee Compensation $180,870 $218,914 $245,009 $229,925 Employee Benefits $87,481 $100,516 $115,968 $109,865 Materials $5,106 $2,193 $9,971 $9,109 Contract Services $- $- $- $5,042 Cost Allocation $119,669 $220,975 $200,818 $187,481 Contingencies $- $- $249 $354 Total Expenditures $393,126 $542,598 $572,015 $541,776 Fund Balance $- $- $- $- General Fund Costs $393,126 $542,597 $572,015 $541,776 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 2.00 2.00 2.00 2.00 PUBLIC WORKS SUPERVISOR 0.30 0.30 0.30 0.20 Total 2.30 2.30 2.30 2.20 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Public Works 517 BBF Golf Maintenance Budget Unit 560-87-260 Blackberry Farm-Facilities and Fleet-BBF Golf Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $133,586 Fund Balance $(133,586) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview Maintain the Blackberry Farm Golf Course buildings to ensure efficient operations, property management and community pride. Service Objectives • Provide a safe,clean and productive environment for the public and employees. • Respond to requests made by the Parks&Recreation Department staff. . Assist with the pending improvement projects. • Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve water,electricity,and gas. Adopted Budget On June 9,2022,City Council approved a budget of$133,586 for the BBF Golf Maintenance program. This is a new program for FY 2022-23. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 518 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Materials $- $- $- $ 106,085 Contract Services $- $- $- $24,243 Contingencies $- $- $- $3,258 Total Expenditures $- $- $- $133,586 Fund Balance $- $- $- $(133,586) General Fund Costs $- $- $- $- Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Public Works 519 City Hall Maintenance Budget Unit 100-87-827 General Fund-Facilities and Fleet-City Hall Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $379,100 Total Expenditures $548,697 Fund Balance $- General Fund Costs $169,597 %Funded by General Fund 30.9% Total Staffing 1.0 FTE Program Overview Maintain City Hall building to ensure efficient operations,employee satisfaction,and community pride. Service Objectives • Provide a safe,clean and productive working environment for the public and city employees. • Respond to requests made by City Hall staff. • Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9, 2022, City Council approved a budget of $548,697 for the City Hall Maintenance program. This represents a decrease of$106,766(-16.3%)from the FY 2021-22 Adopted Budget. The decrease is mainly due to the completion of one-time special projects. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 520 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $- $8,838 $- $- Charges for Services $459,503 $500,394 $452,294 $379,100 Total Revenues $459,503 $509,232 $452,294 $379,100 Expenditures Employee Compensation $106,601 $106,954 $108,611 $108,611 Employee Benefits $50,159 $52,427 $56,238 $58,008 Materials $162,358 $112,901 $213,109 $257,988 Contract Services $94,289 $152,740 $105,547 $114,771 Cost Allocation $81,746 $- $- $- Special Projects $20,342 $- $160,000 $- Contingencies $- $- $11,958 $9,319 Total Expenditures $515,495 $425,022 $655,463 $548,697 Fund Balance $- $- $- $- General Fund Costs $55,992 $ (84,209) $203,169 $169,597 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.10 0.10 0.10 0.10 MAINTENANCE WORKER III 0.70 0.70 0.70 0.70 PUBLIC WORKS SUPERVISOR 0.20 0.20 0.20 0.20 Total 1.00 1.00 1.00 1.00 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 521 Library Maintenance Budget Unit 100-87-828 General Fund-Facilities and Fleet-Library Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $621,162 Total Expenditures $667,502 Fund Balance $- General Fund Costs $46,340 %Funded by General Fund 6.9% Total Staffing 0.6 FTE Program Overview Maintain Library building to ensure public and employee satisfaction and community pride. Service Objectives • Provide a safe,clean and productive working environment for the public and County employees. • Respond to requests made by County staff. • Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9, 2022, City Council approved a budget of $667,502 for the Library Maintenance program. This represents an increase of$20,579(3.2%)from the FY 2021-22 Adopted Budget. This increase is due to increases in special projects, and materials offset by decreases in salary and benefits due to position reallocations and decreased Cost Allocation Plan charges. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Ventilation Proactive evaluation Preventative $45,000 $45,000 General Fund of the ventilation Maintenance system Total $45,000 $45,000 FY 2022-23 Adopted Budget Public Works 522 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $23,118 $8,792 $201,729 $26,004 Charges for Services $614,222 $- $267,965 $595,158 Total Revenues $637,340 $8,792 $469,694 $621,162 Expenditures Employee Compensation $72,491 $67,192 $73,584 $59,834 Employee Benefits $37,072 $36,070 $41,650 $33,594 Materials $8,502 $19,109 $9,951 $10,074 Contract Services $282,294 $285,275 $408,245 $429,558 Cost Allocation $45,986 $82,239 $91,770 $78,451 Special Projects $60,539 $- $11,000 $45,000 Contingencies $- $- $10,723 $10,991 Total Expenditures $506,884 $489,885 $646,923 $667,502 Fund Balance $- $- $- $- General Fund Costs $(130,455) $481,093 $177,229 $46,340 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.60 0.60 0.60 0.40 MAINTENANCE WORKER III 0.10 0.10 0.10 0.10 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.80 0.80 0.80 0.60 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Public Works 523 Service Center Maintenance Budget Unit 100-87-829 General Fund-Facilities and Fleet-Service Center Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $435,665 Fund Balance $- General Fund Costs $435,665 %Funded by General Fund 100.0% Total Staffing 0.7 FTE Program Overview This program maintains the Service Center buildings to ensure employee satisfaction and community pride. Service Objectives • Provide a safe,clean and productive working environment for the public and employees. • Respond to requests made by Service Center staff. • Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9,2022,City Council approved a budget of$435,665 for the Service Center Maintenance program.This represents an increase of$24,940(6.1%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Public Works 524 Special Projects Appropriation Revenue Funding Source Description Air Conditioning $16,500 $16,500 General Fund Replace AC,which Replacement is at end-of-life Conference Room Replace carpet, Carpet Replacement $12,000 $12,000 General Fund which is beyond serviceable life Roof Gutter Replace roof gutters Replacement $12,000 $12,000 General Fund to prevent dry rot Locker Room Floor Replace deteriorated Replacement $12,000 $12,000 General Fund floor Mechanic Bay Replace lighting so Lighting Upgrade $15,000 $15,000 General Fund portable lighting is no longer needed Shops Roof 000 General Fund Replace roofing to Replacement $42,000 $42, prevent dry rot Total $109,500 $109,500 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $262,382 $- $- $- Total Revenues $262,382 $- $- $- Expenditures Employee Compensation $66,132 $66,646 $69,623 $68,217 Employee Benefits $32,976 $35,263 $38,473 $38,828 Materials $52,604 $44,528 $43,259 $46,343 Contract Services $54,038 $76,887 $76,636 $84,711 Cost Allocation $40,518 $80,684 $88,518 $84,790 Special Projects $- $- $89,000 $109,500 Contingencies $- $- $5,216 $3,276 Total Expenditures $246,268 $304,008 $410,725 $435,665 Fund Balance $- $- $- $- General Fund Costs $ (16,114) $304,008 $410,725 $435,665 FY 2022-23 Adopted Budget Public Works 525 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/11 0.40 0.40 0.40 0.40 MAINTENANCE WORKER III 0.20 0.20 0.20 0.20 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.70 0.70 0.70 0.70 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 526 Quinlan Community Center Maintenance Budget Unit 100-87-830 General Fund-Facilities and Fleet-Quinlan Community Center Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $638,815 Fund Balance $- General Fund Costs $638,815 %Funded by General Fund 100.0% Total Staffing 0.8 FTE Program Overview This program maintains Quinlan Community Center building to ensure efficient operations, employee satisfaction,user satisfaction and community pride. Service Objectives • Provide a safe,clean and productive working environment for the public and employees. • Maintain an attractive appearance in spaces available as rentals. • Respond to requests made by Parks&Recreation Department staff. • Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9, 2022, City Council approved a budget of$638,815 for the Quinlan Community Center Maintenance program.This represents an increase of$77,556(13.8%)from the FY 2021-22 Adopted Budget. The increase is due to materials,contract increases and special project costs that vary from year to year. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Public Works 527 Special Projects Appropriation Revenue Funding Source Description Conference Room Replace carpet, Carpet Replacement $14,000 $14,000 General Fund which is beyond serviceable life Center Stage Floor Periodic Refinishing $20,000 $20,000 General Fund maintenance of stage floor Total $34,000 $34,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $385,272 Total Revenues $385,272 - Expenditures Employee Compensation $76,220 $73,160 $77,783 $76,442 Employee Benefits $33,819 $35,036 $38,658 $39,009 Materials $138,323 $105,322 $170,310 $211,815 Contract Services $104,831 $136,022 $150,922 $162,000 Cost Allocation $55,406 $99,702 $110,437 $106,204 Capital Outlays $- $57,728 $- $- Special Projects $20,450 $3,756 $5,000 $34,000 Contingencies $- $ - $8,149 $9,345 Total Expenditures $429,049 $510,726 $561,259 $638,815 Fund Balance $- $- $- $- General Fund Costs $43,777 $510,726 $561,259 $638,815 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 528 Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.70 0.70 0.70 0.70 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.80 0.80 0.80 0.80 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 529 Senior Center Maintenance Budget Unit 100-87-831 General Fund-Facilities and Fleet-Senior Center Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $616,786 Fund Balance $- General Fund Costs $616,786 %Funded by General Fund 100.0% Total Staffing 0.8 FTE Program Overview Maintain Senior Center building to ensure efficient operations, employee satisfaction, user satisfaction and community pride. Service Objectives • Provide a safe,clean and productive working environment for the public and employees. . Respond to requests made by Parks&Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9,2022, City Council approved a budget of$616,786 for the Senior Center Maintenance program. This represents an increase of$214,863(53.5%)from the FY 2021-22 Adopted Budget. The increase is mainly due to materials, contract services, and special projects. Repairs are needed because the facility was closed for much of last fiscal year.Compensation and benefits are decreasing due to vacant position being budget budgeted at a lower rate than the prior encumbent Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Public Works 530 Special Projects Appropriation Revenue Funding Source Description Replace IT Server Air Conditioning Room AC that is Replacement $14,500 $14,500 General Fund beyond serviceable life Exterior Deck Dry $9,000 $9,000 General Fund Repair partially Rot Repair failed wood decking Energy Management Replace EMS that is System(EMS) $90,000 $90,000 General Fund obsolete and no Upgrades parts are available Replace flat roofs Partial Roof that have failed and Replacement $75,000 $75,000 General Fund are no longer water- tight Total $188,500 $188,500 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $262,630 Total Revenues $262,630 - Expenditures Employee Compensation $64,182 $61,501 $73,337 $66,290 Employee Benefits $35,232 $38,425 $44,062 $40,927 Materials $75,855 $43,010 $92,977 $115,317 Contract Services $102,474 $34,588 $102,137 $121,789 Cost Allocation $35,231 $78,167 $84,539 $78,035 Special Projects $12,500 $5,099 $- $188,500 Contingencies $- $- $4,871 $5,928 Total Expenditures $325,474 $260,790 $401,923 $616,786 Fund Balance $- $- $- $- General Fund Costs $62,845 $260,790 $401,923 $616,786 FY 2022-23 Adopted Budget Public Works 531 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.70 0.70 0.70 0.70 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.80 0.80 0.80 0.80 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 532 McClellan Ranch Maintenance Budget Unit 100-87-832 General Fund-Facilities and Fleet-McClellan Ranch Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $891 Total Expenditures $238,267 Fund Balance $- General Fund Costs $237,376 %Funded by General Fund 99.6% Total Staffing 0.4 FTE Program Overview This program maintains McClellan Ranch buildings to ensure efficient operations, employee satisfaction, user satisfaction and community pride. Service Objectives . Provide a safe,clean and productive working environment for the public and employees. • Respond to requests made by Parks&Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9, 2022, City Council approved a budget of$238,267 for the McClellan Ranch Maintenance program. This represents an increase of$3,829(1.6%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged since last fiscal year,but salary and benefits are down due to a reallocation of staff,this is offset by an increase in one-time special projects that vary from year to year Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Public Works 533 Special Projects Appropriations Revenue Funding Source Description 4H Roof and Gutter 000 General Fund Replace roof gutters Replacement $25,000 $25, to prevent dry rot Milk Barn Exterior Exterior repainting Painting $30,000 $30,000 General Fund on a 7-year maintenance cycle Total $55,000 $55,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $95,425 $- $- $- Miscellaneous Revenue $840 $865 $874 $891 Total Revenues $96,265 $865 $874 $891 Expenditures Employee Compensation $55,872 $48,247 $54,471 $40,717 Employee Benefits $25,955 $24,031 $28,720 $20,377 Materials $14,761 $14,446 $18,405 $20,432 Contract Services $41,526 $19,425 $46,903 $48,685 Cost Allocation $26,690 $58,140 $63,811 $51,328 Special Projects $15,061 $- $20,000 $55,000 Contingencies $- $- $2,128 $1,728 Total Expenditures $179,865 $164,289 $234,438 $238,267 Fund Balance $- $- $- $- General Fund Costs $83,600 $163,423 $233,564 $237,376 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 534 Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.50 0.50 0.50 0.30 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.60 0.60 0.60 0.40 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Public Works 535 Monta Vista Community Center Maintenance Budget Unit 100-87-833 General Fund-Facilities and Fleet-Monta Vista Community Center Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $202,498 Fund Balance $- General Fund Costs $202,498 %Funded by General Fund 100.0% Total Staffing 0.4 FTE Program Overview This program maintains Monta Vista Community Center and adjacent buildings to ensure efficient operations, employee satisfaction,user satisfaction and community pride. Service Objectives . Provide a safe, clean and productive working environment for the public and employees. Respond to requests made by the Parks&Recreation staff. • Respond to requests made by Parks&Recreation Department staff. • Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9, 2022, City Council approved a budget of $202,498 for the Monta Vista Community Center Maintenance program.This represents an increase of$7,736(4.0%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 536 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $118,070 $- $- $- Total Revenues $118,070 $- $- $- Expenditures Employee Compensation $37,832 $36,430 $40,132 $40,067 Employee Benefits $18,486 $ 19,701 $21,495 $23,084 Materials $19,606 $31,684 $30,938 $37,585 Contract Services $38,079 $22,258 $45,053 $48,085 Cost Allocation $22,103 $49,815 $55,247 $51,535 Special Projects $27,610 $- $- $- Contingencies $- $- $ 1,897 $2,142 Total Expenditures $163,716 $159,888 $194,762 $202,498 Fund Balance $- $- $- $- General Fund Costs $45,647 $159,888 $194,762 $202,498 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.30 0.30 0.30 0.30 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.40 0.40 0.40 0.40 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 537 Wilson Park Maintenance Budget Unit 100-87-834 General Fund-Facilities and Fleet-Wilson Park Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $ 104,887 Fund Balance $- General Fund Costs $104,887 %Funded by General Fund 100.0% Total Staffing 0.2 FTE Program Overview This program maintains Wilson Park Ceramics Center to ensure efficient operations, user satisfaction, and community pride. Service Objectives . Provide a safe,clean and productive working environment for the public and employees. . Respond to requests made by Parks&Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9, 2022, City Council approved a budget of$104,887 for the Wilson Park Maintenance program. This represents an increase of$3,356(3.3%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 538 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $77,225 $- $- $- Total Revenues $77,225 $- $- $- Expenditures Employee Compensation $19,820 $21,254 $20,323 $20,323 Employee Benefits $11,011 $11,533 $12,622 $12,899 Materials $13,135 $10,087 $12,794 $15,429 Contract Services $12,330 $ 12,533 $16,465 $18,670 Cost Allocation $12,432 $36,619 $38,598 $36,714 Contingencies $- $- $729 $852 Total Expenditures $68,728 $92,026 $101,531 $104,887 Fund Balance $- $- $- $- General Fund Costs $(8,497) $92,026 $101,531 $104,887 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER III 0.20 0.20 0.20 0.20 Total 0.20 0.20 0.20 0.20 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 539 Portal Park Maintenance Budget Unit 100-87-835 General Fund-Facilities and Fleet-Portal Park Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $69,185 Fund Balance $- General Fund Costs $69,185 %Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview This program maintains Portal Park building to ensure user efficient operations, satisfaction, and community pride. Service Objectives • Provide a safe,clean and productive working environment for the public and employees. • Respond to requests made by Parks&Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9, 2022, City Council approved a budget of $69,185 for the Portal Park Maintenance program. This represents an increase of$8,449(13.9%)from the FY 2021-22 Adopted Budget. The increase is mainly due to additional contract services for concrete replacement and repair. Existing concrete is raising and cracking causing trip/fall hazards. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 540 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $41,483 $- $- $- Total Revenues $41,483 $- $- $- Expenditures Employee Compensation $9,778 $ 10,496 $10,162 $10,162 Employee Benefits $5,464 $5,746 $6,311 $6,450 Materials $5,078 $4,887 $8,717 $9,511 Contract Services $3,122 $ 11,298 $5,922 $12,679 Cost Allocation $8,466 $26,093 $29,259 $29,828 Contingencies $- $- $365 $555 Total Expenditures $31,908 $58,520 $60,736 $69,185 Fund Balance $- $- $- $- General Fund Costs $(9,576) $58,521 $60,736 $69,185 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER III 0.10 0.10 0.10 0.10 Total 0.10 0.10 0.10 0.10 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 541 Sports Center Maintenance Budget Unit 570-87-836 Sports Center-Facilities and Fleet-Sports Center Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $640,197 Fund Balance $ (640,197) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing 0.7 FTE Program Overview This program maintains Sport Center facilities to ensure efficient operations, employee satisfaction, user satisfaction,and community pride. Service Objectives . Provide a safe,clean and productive working environment for the public and employees. . Respond to requests made by Parks&Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9,2022, City Council approved a budget of$640,197 for the Sports Center Maintenance program. This represents an increase of$17,145(2.8%)from the FY 2021-22 Adopted Budget. This increase is due to Materials, Contract Services, changes in Cost Allocation Plan, and special project costs that vary from year to year. Materials are increasing due to increases in electricity, water, and sewer rates. Contract Services are increasing due to a contract for HVAC control servicing, which was previously a special project. Special Projects The following table shows the special projects for the fiscal year. FY 2022-23 Adopted Budget Public Works 542 Special Projects Appropriations Revenue Funding Source Description Locker Room Floor 000 General Fund Replace worn locker Replacement $15,000 $15, room flooring Racquetball Court Refinish and restripe Floor Refinishing $16,000 $16,000 General Fund racquetball court flooring Ventilation Preventive Proactive evaluation Maintenance and $35,000 $35,000 General Fund of the Sport Center ventilation system Repair Total $66,000 $66,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues $- $- $- $- Expenditures Employee Compensation $72,404 $71,984 $73,552 $72,172 Employee Benefits $48,861 $32,847 $41,742 $41,603 Materials $123,610 $119,565 $140,248 $172,689 Contract Services $107,593 $74,040 $126,692 $148,367 Cost Allocation $89,668 $130,585 $122,425 $131,340 Special Projects $2,435 $19,768 $109,000 $66,000 Contingencies $- $- $9,393 $8,026 Total Expenditures $444,571 $448,789 $623,052 $640,197 Fund Balance $(444,572) $ (448,790) $(623,052) $(640,197) General Fund Costs Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 543 Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.10 0.10 0.10 0.10 MAINTENANCE WORKER III 0.50 0.50 0.50 0.50 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.70 0.70 0.70 0.70 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 544 Creekside Park Maintenance Budget Unit 100-87-837 General Fund-Facilities and Fleet-Creekside Park Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $ 111,461 Fund Balance $- General Fund Costs $111,461 %Funded by General Fund 100.0% Total Staffing 0.2 FTE Program Overview This program maintains Creekside Park building to ensure efficient operations, user satisfaction, and community pride. Service Objectives . Provide a safe,clean and productive working environment for the public and employees. . Respond to requests made by Parks&Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9, 2022, City Council approved a budget of $111,461 for the Creekside Park Maintenance program. This represents an increase of$4,526(4.2%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 545 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $47,545 $ - $- $- Total Revenues $47,545 $- $- $- Expenditures Employee Compensation $21,033 $21,831 $22,585 $22,585 Employee Benefits $9,948 $10,461 $10,911 $11,142 Materials $10,486 $8,979 $17,167 $19,595 Contract Services $11,152 $3,606 $14,895 $19,312 Cost Allocation $17,199 $38,004 $40,576 $37,854 Contingencies $- $- $801 $973 Total Expenditures $69,818 $82,881 $106,935 $111,461 Fund Balance $- $- $- $- General Fund Costs $22,274 $82,882 $106,935 $111,461 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.10 0.10 0.10 0.10 PUBLIC WORKS SUPERVISOR 0.10 0.10 0.10 0.10 Total 0.20 0.20 0.20 0.20 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 546 Community Hall Maintenance Budget Unit 100-87-838 General Fund-Facilities and Fleet-Community Hall Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $255,256 Fund Balance $- General Fund Costs $255,256 %Funded by General Fund 100.0% Total Staffing 0.5 FTE Program Overview This program maintains Community Hall and interactive fountain to ensure efficient operations, employee satisfaction,user satisfaction, and community pride. Service Objectives • Provide a safe,clean and productive working environment for the public and employees. • Respond to requests made by Community Hall users. . Manage and responsibly coordinate work completed by contractors. • Ensure water quality and functionality of interactive fountain. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. • Comply with mandated water restrictions. Adopted Budget On June 9, 2022, City Council approved a budget of$255,256 for the Community Hall Maintenance program. This represents a decrease of$4,505(-1.7%)from the FY 2021-22 Adopted Budget. The decrease is primarily due to one-time special projects that vary from year to year and decreased Cost Allocation Plan charges.Materials are increasing due to higher electricity and water rates. Contract Services are increasing due to a new janitorial contract. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 547 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $233,028 $ - $- $- Total Revenues $233,028 $- $- $- Expenditures Employee Compensation $40,280 $39,969 $44,689 $41,869 Employee Benefits $23,022 $25,077 $28,262 $27,359 Materials $39,846 $40,979 $49,734 $61,836 Contract Services $34,725 $48,941 $53,580 $59,918 Cost Allocation $28,215 $63,275 $63,493 $61,230 Special Projects $- $- $17,000 $- Contingencies $- $- $3,003 $3,044 Total Expenditures $166,088 $218,241 $259,761 $255,256 Fund Balance $- $- $- $- General Fund Costs $ (66,940) $218,241 $259,761 $255,256 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.40 0.40 0.40 0.40 MAINTENANCE WORKER III 0.10 0.10 0.10 0.10 Total 0.50 0.50 0.50 0.50 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 548 Teen Center Maintenance Budget Unit 100-87-839 General Fund-Facilities and Fleet-Teen Center Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $50,100 Fund Balance $- General Fund Costs $50,100 %Funded by General Fund 100.0% Total Staffing 0.1 FTE Program Overview This program maintains the Teen Center area below the Sports Center to ensure efficient operations, employee satisfaction,user satisfaction, and community pride. Service Objectives . Provide a safe,clean and productive working environment for the public and employees. . Respond to requests made by Parks&Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9, 2022, City Council approved a budget of $50,100 for the Teen Center Maintenance program. This represents an increase of$1,113(2.3%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 549 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $21,469 $- $- $- Total Revenues $21,469 $- $- $- Expenditures Employee Compensation $10,939 $10,496 $10,162 $10,162 Employee Benefits $5,717 $5,746 $6,311 $6,450 Materials $5,427 $5,701 $6,875 $8,511 Cost Allocation $5,587 $23,817 $25,468 $24,764 Contingencies $- $- $ 171 $213 Total Expenditures $27,670 $45,760 $48,987 $50,100 Fund Balance $- $- $- $- General Fund Costs $6,201 $45,760 $48,987 $50,100 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER III 0.10 0.10 0.10 0.10 Total 0.10 0.10 0.10 0.10 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 550 Park Bathrooms Maintenance Budget Unit 100-87-840 General Fund-Facilities and Fleet-Park Bathrooms Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $212,702 Fund Balance $- General Fund Costs $212,702 %Funded by General Fund 100.0% Total Staffing 0.2 FTE Program Overview This program maintains park restrooms to ensure efficient operations,user satisfaction,and community pride. Service Objectives • Provide clean and functioning restrooms at various park locations. • Respond to requests made by the users of the park. • Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9, 2022, City Council approved a budget of $212,702 for the Park Bathrooms Maintenance program. This represents an increase of$86,446(68.5%)from the FY 2021-22 Adopted Budget. The increase is mainly due to additional contract services for janitorial. Janitorial costs are increasing by over $70,000 due to a new contract. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 551 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $85,967 $- $- $- Total Revenues $85,967 $- $- $- Expenditures Employee Compensation $17,348 $17,684 $17,930 $17,941 Employee Benefits $9,057 $9,498 $10,374 $10,602 Materials $13,036 $39,366 $21,478 $22,244 Contract Services $29,736 $88,385 $35,954 $ 117,663 Cost Allocation $14,572 $35,422 $39,086 $40,754 Capital Outlays $- $6,098 $- $- Special Projects $- $6,299 $- $- Contingencies $- $ - $ 1,434 $3,498 Total Expenditures $83,749 $202,752 $126,256 $212,702 Fund Balance $- $- $- $- General Fund Costs $ (2,218) $202,751 $126,256 $212,702 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.20 0.20 0.20 0.20 Total 0.20 0.20 0.20 0.20 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 552 Blackberry Farm Maintenance Budget Unit 100-87-841 General Fund-Facilities and Fleet-Blackberry Farm Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $578,769 Fund Balance $- General Fund Costs $578,769 %Funded by General Fund 100.0% Total Staffing 1.3 FTE Program Overview This program maintains Blackberry Farm buildings and facilities to ensure efficient operations, employee satisfaction,user satisfaction, and community pride. Service Objectives • Provide a safe,clean and productive working environment for the public and employees. . Timely response to requests made by Parks&Recreation Department staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9, 2022, City Council approved a budget of $578,769 for the Blackberry Farm Maintenance program. This represents an increase of$36,730(6.8%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. Special Projects The following table shows the special projects for the fiscal year. Special Project Appropriation Revenue Funding Source Description Blesch,Byrne and Stocklmeir Allowance to fund Maintenance $25,000 $25,000 General Fund issues found during maintenance checks Allowance Total $25,000 $25,000 FY 2022-23 Adopted Budget Public Works 553 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $- $4,961 $- $- Charges for Services $322,155 $- $- $- Total Revenues $322,155 $4,961 $- $- Expenditures Employee Compensation $73,858 $54,403 $67,730 $89,716 Employee Benefits $42,193 $34,641 $45,507 $41,540 Materials $98,579 $93,336 $119,316 $137,668 Contract Services $56,939 $100,344 $81,618 $84,721 Cost Allocation $122,841 $188,709 $193,129 $ 194,564 Special Projects $1,972 $1,630 $29,000 $25,000 Contingencies $- $- $5,739 $5,560 Total Expenditures $396,382 $473,063 $542,039 $578,769 Fund Balance $- $- $- $- General Fund Costs $74,227 $468,101 $542,039 $578,769 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget MAINTENANCE WORKER I/II 0.90 0.90 0.90 1.30 Total 0.90 0.90 0.90 1.30 Staff time is being reallocated to better reflect actual time spent in this program. FY 2022-23 Adopted Budget Public Works 554 Franco Traffic Operations Center Budget Unit 100-87-852 General Fund-Facilities and Fleet-Franco Traffic Operations Center Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $17,036 Fund Balance $- General Fund Costs $17,036 %Funded by General Fund 100.0% Total Staffing FTE Program Overview This program maintains the Traffic Operations Center on Franco Court to ensure efficient operations, user satisfaction,and community pride. Service Objectives . Provide a safe,clean and productive working environment for city employees. • Respond to requests made by Traffic Operations Center staff. . Manage and responsibly coordinate work completed by contractors. • Perform improvements that responsibly conserve the resources of water,electricity,and gas. Adopted Budget On June 9, 2022, City Council approved a budget of$17,036 for the Franco Traffic Operations Center program. This represents an increase of$10,378(155.9%)from the FY 2021-22 Adopted Budget. The increase is mainly due to contract services for janitorial and security. Janitorial costs were not budgeted in FY 2021-22. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 555 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Materials $434 $ 182 $ 135 $140 Contract Services $2,192 $1,356 $1,930 $12,178 Cost Allocation $26,737 $5,513 $4,541 $4,410 Contingencies $- $- $52 $308 Total Expenditures $29,363 $7,051 $6,658 $17,036 Fund Balance $- $- $- $- General Fund Costs $29,362 $7,051 $6,658 $17,036 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Public Works 556 City Hall Annex Budget Unit 100-87-857 General Fund-Facilities and Fleet-City Hall Annex Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $25,525 Fund Balance $- General Fund Costs $25,525 %Funded by General Fund 100.0% Total Staffing FTE Program Overview Maintain City Hall Annex building to ensure efficient operations, property management and community pride. Service Objectives . Provide a safe,clean and productive working environment for building occupants. • Assist with the pending improvement projects. • Feasibly conserve resources of water,electricity,and gas. Adopted Budget On June 9,2022,City Council approved a budget of$25,525 for the City Hall Annex program. This represents a decrease of$37,851 (-59.7%)from the FY 2021-22 Adopted Budget. The decrease is mainly due to the loss of the majority of tenants and initial costs required to transition this newly acquired property. Materials costs include electricity, telephone, and water. Contract Services are for janitorial costs,which were not budgeted in FY 2021-22. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 557 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Materials $- $- $63,376 $8,378 Contract Services $- $- $- $16,524 Contingencies $- $- $- $623 Total Expenditures $- $- $63,376 $25,525 Fund Balance $- $- $- $- General Fund Costs $- $- $63,376 $25,525 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Public Works 558 Traffic Engineering Budget Unit 100-88-844 General Fund-Transportation-Traffic Engineering Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $ 1,530,072 Fund Balance $- General Fund Costs $1,530,072 %Funded by General Fund 100.0% Total Staffing 3.9 FTE Program Overview The Transportation Division oversees traffic operations, traffic studies, transportation planning, and transportation capital improvements to safely and efficiently manage all modes of travel within the City's street and trail network. This includes responding to citizen requests and concerns regarding traffic issues, developing plans for the installation of traffic signals, traffic signs, and pavement markings, and developing design standards. The Division assists in the preparation of the General Plan, street plan lines and the capital improvement program related to street improvements. Division staff are active on Santa Clara Valley Transportation Authority (VTA) subcommittees and working groups and keeps abreast regarding current developments in the field as well as grant funding opportunities for large projects. The Transportation Division also participates in the review of private development proposals to identify potential traffic impacts and to require necessary mitigations to maintain levels of service and safe and efficient traffic operations. Service Objectives • Ensure the efficiency and safety of the street system for all modes of travel through continual observation of traffic patterns,traffic signals and other traffic control devices. • Review traffic collision reports, traffic flow patterns, and neighborhood traffic issues and respond as needed. • Cooperate with neighboring jurisdictions on regional issues that affect both traffic safety and traffic efficiency at City boundaries. • Continue training personnel in traffic engineering by encouraging attendance at classes and seminars. • Encourage the use of alternate modes of transportation to the single occupancy vehicle through the implementation of recommendations from the Bicycle and Pedestrian Transportation Plans. • Supports transit initiatives, ride-share programs, carpool programs, and transportation planning work for all modes of transportation. FY 2022-23 Adopted Budget Public Works 559 Adopted Budget On June 9, 2022, City Council approved a budget of $1,530,072 for the Traffic Engineering program. This represents an increase of$15,673(1.0%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. The increase in Special Projects is due to City Work Program projects. Special Projects The following table shows the special projects for the fiscal year. Special Projects Appropriation Revenue Funding Source Description Strategic Goal City Work Program: Increase the Bicycle Facilities $50,000 $50,000 General Fund inventory of Transportation bicycle facilities and amenities, such as bike racks,citywide. Lawson Middle City Work School Bikeway Program: Feasibility $40,000 $40,000 General Fund Feasibility study Transportation Study for separated bikeways City Work Program:Vision Zero strategy to Vision Zero $80,000 $80,000 General Fund eliminate Transportation injuries and fatalities on roadways Total $170,000 $170,000 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 560 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Charges for Services $3,903 $ - $- $- Miscellaneous Revenue $585 $- $- $- Total Revenues $4,488 - Expenditures Employee Compensation $452,447 $470,283 $598,026 $608,849 Employee Benefits $187,475 $192,539 $277,673 $289,922 Materials $18,202 $14,808 $20,232 $21,000 Contract Services $151,312 $294,688 $203,821 $176,190 Cost Allocation $126,644 $233,018 $275,796 $259,181 Special Projects $530,233 $52,872 $130,000 $170,000 Contingencies $- $- $8,851 $4,930 Total Expenditures $1,466,313 $1,258,208 $1,514,399 $1,530,072 Fund Balance $- $- $- $- General Fund Costs $1,461,825 $1,258,206 $1,514,399 $1,530,072 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ASSISTANT ENGINEER 1.50 1.50 1.50 1.50 PUBLIC WORKS PROJECT MANAGER 0 0.50 0.50 0.50 LT TRANSIT&TRANSPORTATION 1.00 1.00 1.00 1.00 PLANNER TRANSPORTATION MANAGER 1.00 0.90 0.90 0.90 Total 3.50 3.90 3.90 3.90 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 561 Traffic Signal Maintenance Budget Unit 100-88-845 General Fund-Transportation-Traffic Signal Maintenance Budget at a Glance 2023 Adopted Budget Total Revenues $8,706 Total Expenditures $811,350 Fund Balance $- General Fund Costs $802,644 %Funded by General Fund 98.9% Total Staffing 2.0 FTE Program Overview The Traffic Signal Maintenance Division oversees the operation and maintenance of the City's 60 traffic signals, including eight traffic signals owned by the State of California. The Division also maintains the traffic signal communication infrastructure,such as the fiber optic network and the traffic operation center hub. Service Objectives . Ensure the continuous and safe operation of the City's traffic signal system on a continuous 24-hour basis with full-time and on-call staff, which is accomplished by regularly performing preventative maintenance, diagnosing malfunctions and repairs, investigating citizen complaints, replacing or upgrading obsolete hardware, inspecting the work of contractors, responding to knockdowns and power outages,and adjusting signal timing parameters. • Continue training, maintaining proficiency of traffic signal technicians and on-call staff by encouraging attendance at classes and seminars. Adopted Budget On June 9, 2022, City Council approved a budget of$811,350 for the Traffic Signal Maintenance program. This represents a decrease of$482(41%)from the FY 2021-22 Adopted Budget. The budget is relatively unchanged from last fiscal year. The increase in Compensation and Benefits is due to the promotion of a Traffic Signal Technician Apprentice to a Traffic Signal Technician. The increase in Materials is due to higher electricity costs. The increases are offset by a decrease in Cost Allocation expenses due to lower IT costs and no recruitments in FY 2020-21. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 562 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $10,182 $10,387 $- $8,706 Charges for Services $3,666 $- $- $- Total Revenues $13,848 $10,387 $- $8,706 Expenditures Employee Compensation $217,978 $254,084 $252,216 $270,466 Employee Benefits $92,420 $105,146 $114,015 $119,012 Materials $135,471 $124,875 $158,596 $180,636 Contract Services $17,500 $18,669 $47,406 $53,171 Cost Allocation $81,649 $175,961 $234,449 $182,220 Special Projects $19,576 $168,705 $- $- Contingencies $- $- $5,150 $5,845 Total Expenditures $564,594 $847,440 $811,832 $811,350 Fund Balance $- $- $- $- General Fund Costs $550,747 $837,053 $811,832 $802,644 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget TRAFFIC SIGNAL TECHNICIAN 1.00 1.00 1.00 2.00 TRAFFIC SIGTECH APRNTICE 1.00 1.00 1.00 0 Total 2.00 2.00 2.00 2.00 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 563 Safe Routes 2 School Budget Unit 100-88-846 General Fund-Transportation-Safe Routes 2 School Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $661,062 Fund Balance $- General Fund Costs $661,062 %Funded by General Fund 100.0% Total Staffing 1.0 FTE Program Overview Safe Routes 2 School seeks to engage local schools, school districts, parent organizations, community groups, and the Santa Clara County Sheriff's Office in the mission of reducing Singular Occupancy Vehicle(SOV)travel to and from school in order to reduce carbon emission and car traffic and increase student safety. The program seeks to achieve these objectives through education, encouragement, enforcement, and engineering infrastructure changes in and around Cupertino schools. Service Objectives • Help to improve the health and well-being of children by increasing the number of students who walk or bike to school. . Develop partnerships with school administrators,staff,parents,and children. • Encourage and empower more students and families to walk,bike, carpool, and take alternative transit to school. . Adjust signage and infrastructure surrounding Cupertino schools to facilitate a safer environment for bicycle and pedestrian travel. • Educate students and families about the benefits of walking and bicycling to school; health, environmental protection,academic improvements,community building and more. • Minimize gaps in communication between City, School Districts, and Schools and collaborate on efforts to increase student safety. . Enhance bicyclist and pedestrian student safety through coordination of skills classes and distribution of educational material. Adopted Budget On June 9, 2022, City Council approved a budget of $661,062 for the Safe Routes 2 School program. This represents a decrease of$185,209(-21.9%)from the FY 2021-22 Adopted Budget. FY 2022-23 Adopted Budget Public Works 564 The decrease is mainly due to reduced Contract Services and Special Projects. Contract Services were higher last year due to additional crossing guard services. Special Projects were higher last year due to special projects for pedestrian education and riding for focus.The increase in compensation is due to additional part-time staff. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Intergovernmental Revenue $- $4,483 $- $- Total Revenues $- $4,483 - Expenditures Employee Compensation $111,475 $116,461 $127,273 $140,556 Employee Benefits $42,629 $46,555 $52,333 $53,851 Materials $22,235 $5,836 $23,214 $24,097 Contract Services $200,290 $33,777 $452,310 $364,178 Cost Allocation $85,404 $69,076 $83,682 $68,673 Special Projects $- $- $93,240 $- Contingencies $- $- $14,219 $9,707 Total Expenditures $462,033 $271,705 $846,271 $661,062 Fund Balance $- $- $- $- General Fund Costs $462,032 $267,222 $846,271 $661,062 Staffing The following table lists full-time equivalents(FTE)by position.It includes actuals for two prior fiscal years,the Adopted Budget for the prior fiscal year,and the Adopted Budget for the current fiscal year. Position Title 2020 2021 2022 Adopted 2023 Adopted Actual Actual Budget Budget ENVIRONMENTAL PROGRAMS 1.00 1.00 1.00 1.00 ASSISTANT Total 1.00 1.00 1.00 1.00 There are no changes to current level of staffing. FY 2022-23 Adopted Budget Public Works 565 Minor Storm Drain Improvement Budget Unit 210-90-978 Storm Drain Improvement-Non-Departmental-Minor Storm Drain Improvement Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $- Fund Balance $- General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview This program provides funding for drainage repairs as needed in various locations. This program will remain in order to maintain historical data however, once all prior year data as listed in the table below is $0, this program will be removed. Service Objectives Provide storm drain repairs throughout the City on an annual basis. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 566 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Capital Outlays $4,000 Total Expenditures $4,000 - Fund Balance $(4,000) - General Fund Costs $- Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Public Works 567 Fixed Assets Acquisition Budget Unit 630-90-985 Vehicle/Equip Replacement-Non-Departmental-Fixed Assets Acquisition Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $7,844 Fund Balance $(7,844) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview This program purchases vehicles and equipment having a value greater than$5,000 and expected life of more than one year. Equipment users are charged for the use of these assets through a depreciation schedule. Equipment used by Special Revenue and Enterprise funds are charged to the respective funds. Service Objectives • Obtain quality equipment through competitive bidding. • Purchase energy efficient vehicles whenever practical. • Purchase quiet,ergonomic and environmentally friendly equipment whenever practical. Adopted Budget On June 9, 2022, City Council approved a budget of $7,844 for the Fixed Assets Acquisition program. This represents a decrease of$993,173(-99.2%)from the FY 2021-22 Adopted Budget. The vehicle and equipment replacement requests were removed via City Council motion at the Proposed Budget study session. Fixed assets requests for vehicle and equipment replacement will be brought to City Council at a later time when additional information is available. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Public Works 568 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues - Expenditures Cost Allocation $- $9,022 $8,817 $7,844 Special Projects $- $- $992,200 $- Total Expenditures $- $9,022 $1,001,017 $7,844 Fund Balance $- $(9,022) $ (1,001,017) $ (7,844) General Fund Costs $- $- $- $- Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Public Works 569 This page intentionally left blank. FY 2022-23 Adopted Budget Public Works 570 Non - Departmental FY 2022-23 Adopted Budget Non-Departmental 571 This page intentionally left blank. FY 2022-23 Adopted Budget Non-Departmental 572 Department Overview Budget Units Budget Unit Program 2023 Adopted Budget Non-Departmental $14,689,603 100-90-001 General Fund Transfers Out $12,013,803 281-90-001 Tree Fund Transfers Out $- 365-90-001 Debt Service Transfers Out $- 429-90-001 Capital Reserve Transfers Out $- 365-90-500 Facility Lease Debt Service $2,675,800 Total $14,689,603 FY 2022-23 Adopted Budget Non-Departmental 573 Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $14,689,603 Fund Balance $2,500,000 General Fund Costs $17,189,603 %Funded by General Fund 117.0% Total Staffing FTE Adopted Budget On June 9, 2022, City Council approved a budget of $14,689,603 for the Non-Departmental department. This represents a decrease of$10,692,932(42.1%)from the FY 2021-22 Adopted Budget. The budget is decreasing due to a reduction in transfers to fund the Capital Improvement Program. The FY 2022-23 Capital Improvement Program does not require transfers from the Capital Reserve. Cost Allocation expenses were higher in FY 2019-20 due to transfers. $20 million was transferred from the General Fund to the Capital Reserve, but $10 million was returned to the General Fund to mitigate the potential impacts of the pandemic.Increased activity in FY 2020-21 is due to the refinancing of the City's debt. FY 2022-23 Adopted Budget Non-Departmental 574 Adopted Expenditures by Division Ir q ■ Non-Departmental L kh, 11 1•. Department Expenditure History $60.1M $51.9M $25.4M $14.7 M 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget FY 2022-23 Adopted Budget Non-Departmental 575 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $200,375 $(130,057) $- $- Charges for Services $900 $25,918,704 $- $- Miscellaneous Revenue $- $600 $- $- Total Revenues $201,275 $25,789,247 $- $- Expenditures Materials $43 $26,254 $17,503 $17,503 Contract Services $1,500 $- $- $- Cost Allocation $60,134,832 $47,371,003 $25,365,032 $14,672,100 Capital Outlays $- $4,473,122 $- $- Total Expenditures $60,136,375 $51,870,379 $25,382,535 $14,689,603 Fund Balance $(5,517,224) $1,243,239 $ (11,492,048) $2,500,000 General Fund Costs $54,417,876 $27,817,203 $13,890,487 $17,189,603 Staffing There is no staffing associated with this department. FY 2022-23 Adopted Budget Non-Departmental 576 General Fund Transfers Out Budget Unit 100-90-001 General Fund-Non-Departmental-General Fund Transfers Out Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $12,013,803 Fund Balance $- General Fund Costs $12,013,803 %Funded by General Fund 100.0% Total Staffing FTE Program Overview Transfers represent transfers of monies between various funds.These transfers provide subsidies and resources to the receiving fund to support operating, debt service, and capital project costs. General Fund subsidies to other funds and funding of capital projects are included in transfers. Transfers out are evaluated each year to ensure funds outside of the General Fund remain with a minimum fund balance of 15% of budgeted operating expenses. These transfers are normally for Special Revenue and Enterprise funds requiring a subsidy due to revenues falling short of full program costs. In addition, the City has reoccurring transfers to fund the total budget costs associated with Annual Debt Payment and Compensated Absences. Adopted Budget On June 9, 2022, City Council approved a budget of$12,013,803 for the General Fund Transfers Out program. This represents an increase of$744,316(6.6%)from the FY 2021-22 Adopted Budget. Transfers from the General Fund to the Capital Reserve are budgeted this year. In the past, transfers to the Capital Reserve were not budgeted and instead adjusted at mid-year. Given the City's aging infrastructure and capital projects needs,the City is allocating$2.5 million in transfers annually to the Capital Reserve throughout the forecast to facilitate Capital Improvement Program budget forecasting. Transfers from the General Fund to the Retiree Medical Fund will be eliminated in FY 2022-23. Other Post- Employment Benefits (OPEB) costs will be funded by the City's Section 115 OPEB Trust because the City's OPEB plan is over 100%funded. Transfers from the General Fund are as follows: FY 2022-23 Adopted Budget Non-Departmental 577 Receiving Fund Description Amount Special Revenue Funds Sidewalk, Curb,and Gutter Maintenance $3,025,000 Debt Service Funds Annual Debt Payment $2,675,800 Capital Projects Funds Capital Improvement Program $2,500,000 Enterprise Funds Recreation $376,000 Internal Service Funds IT Infrastructure,Compensated Absences $3,419,500 Total $11,996,300 Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues $- $- $- $- Expenditures Materials $43 $26,254 $17,503 $17,503 Cost Allocation $30,892,276 $15,148,689 $11,251,984 $11,996,300 Capital Outlays $- $4,473,122 $- $- Total Expenditures $30,892,319 $19,648,065 $11,269,487 $12,013,803 Fund Balance $- $- $- $- General Fund Costs $30,892,319 $19,648,065 $11,269,487 $12,013,803 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Non-Departmental 578 Tree Fund Transfers Out Budget Unit 281-90-001 Tree Fund-Non-Departmental-Tree Fund Transfers Out Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $- Fund Balance $- General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview Transfers represent transfers of monies between various funds. Tree Fund revenues are from in-lieu tree replacement fees and tree damage and removal fees. The revenues are transferred to the Street Tree Maintenance program to pay for new and replacement trees. Adopted Budget There is no budget requested for this program. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Non-Departmental 579 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $6,384 $399 $- $- Charges for Services $900 $- $- $- Miscellaneous Revenue $- $600 $- $- Total Revenues $7,284 $999 $- $- Expenditures Cost Allocation $12,000 $15,000 $ 15,000 $- Total Expenditures $12,000 $15,000 $15,000 $- Fund Balance $ (4,716) $(14,001) $(15,000) $- General Fund Costs $- $- $- $- Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Non-Departmental 580 Debt Service Transfers Out Budget Unit 365-90-001 Public Facilities Corp-Non-Departmental-Debt Service Transfers Out Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $- Fund Balance $2,675,800 General Fund Costs $2,675,800 %Funded by General Fund 0.0% Total Staffing FTE Program Overview Transfers represent transfers of monies between various funds.These transfers provide subsidies and resources to the receiving fund to support operating, debt service, and capital project costs. General Fund subsidies to other funds and funding of capital projects are included in transfers. Adopted Budget There is no budget requested for this program. Increased activity in FY 2020-21 is due to the refinancing of the City's debt. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Non-Departmental 581 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $26,611 $332 $- $_ Charges for Services $- $25,918,704 $- $_ Total Revenues $26,611 $25,919,036 $- $- Expenditures Cost Allocation $- $27,279,118 $- $- Total Expenditures $- $27,279,118 $- $- Fund Balance $3,199,449 $1,809,056 $2,621,000 $2,675,800 General Fund Costs $3,172,838 $3,169,138 $2,621,000 $2,675,800 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Non-Departmental 582 Capital Reserve Transfers Out Budget Unit 429-90-001 Capital Reserve-Non-Departmental-Capital Reserve Transfers Out Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $- Fund Balance $2,500,000 General Fund Costs $2,500,000 %Funded by General Fund 0.0% Total Staffing FTE Program Overview Transfers represent transfers of monies between various funds.These transfers provide subsidies and resources to the receiving fund to support operating, debt service, and capital project costs. General Fund subsidies to other funds and funding of capital projects are included in transfers. Transfers out from the Capital Reserve vary from year to year depending on the projects selected in the Capital Improvement Program. In addition, funding sources for each project are reviewed and then allocated appropriately. After this review, the remaining balance of the project left to fund is then transferred from the Capital Reserve Fund. Adopted Budget There is no budget requested for this program. Transfers are not budgeted as the FY 2022-23 Capital Improvement Program does not require funding from the Capital Reserve. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. FY 2022-23 Adopted Budget Non-Departmental 583 Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Use of Money and Property $167,380 $(130,788) $- $- Total Revenues $167,380 $(130,788) $- $_ Expenditures Cost Allocation $26,057,719 $1,989,449 $11,422,048 $- Total Expenditures $26,057,719 $1,989,449 $11,422,048 $_ Fund Balance $(5,537,620) $2,879,763 $ (11,422,048) $2,500,000 General Fund Costs $20,352,719 $5,000,000 $- $2,500,000 Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Non-Departmental 584 Facility Lease Debt Service Budget Unit 365-90-500 Public Facilities Corp-Non-Departmental-Facility Lease Debt Service Budget at a Glance 2023 Adopted Budget Total Revenues $- Total Expenditures $2,675,800 Fund Balance $(2,675,800) General Fund Costs $- %Funded by General Fund 0.0% Total Staffing FTE Program Overview The Debt Service Program accounts for the payment of principal and interest and associated administrative costs incurred with the issuance of debt instruments for the City's Public Facilities Corporation. The budget funds the Corporation's annual payment of principal and interest on the City Hall/Library, Wilson/Memorial Open Space,and Library Certificates of Participation(COP)that will be paid off by the year 2030. The majority of the borrowings occurred in early 1990 to acquire additional park real estate and expand community facilities.A breakdown of the capital acquisitions follows: . Increased 90 acres of park real estate to 190 acres,a 111%increase . Increased 26,031 sq ft of recreation building space to 84,460 sq ft,a 224%increase Specific purchases included: • Blackberry Farm-$18 million,voter-approved debt • Creekside Park-$12 million voter-approved debt . Sports Center-$8 million • Quinlan Community Center,including park real estate-$6.1 million • Wilson Park and improvements-$5.6 million . Jollyman Park development-$1 million • City Hall renovation/improvements-$1.7 million • Library renovation/improvements-$1.7 million . New Library and Community Hall-$10 million Most recently,the City added debt to fund the new Library and Community Hall in 2004. In May 2012, the Corporation refinanced its$44 million in outstanding debt to lower the interest rate and save approximately $350,000 per year in debt payments. On September 29, 2020, the City's 2020A Certificates of Participation(2020 COPS) were successfully sold to refund the City's 2012 Certificates of Participation for debt service savings. The refunding generated net present value savings of approximately $3.14 million, 11.61% of refunded par, and a True Interest Cost of 0.72%. Savings to the City's General Fund amounts to approximately $494,000 per year for the next ten years or almost$5 million in total savings. FY 2022-23 Adopted Budget Non-Departmental 585 Schedule of Lease Payments Bond Year(Ending Principal Interest Annual Lease Payment June 1) 2022 1,880,000 796,000 2,676,000 2023 1,955,000 720,800 2,675,800 2024 2,035,000 642,600 2,677,600 2025 2,115,000 561,200 2,676,200 2026 2,200,000 476,600 2,676,600 2027 2,285,000 388,600 2,673,600 2028 2,380,000 297,200 2,677,200 2029 2,475,000 202,000 2,677,000 2030 2,575,000 103,000 2,678,000 Total $19,900,000 $4,188,000 $24,088,000 Adopted Budget On June 9, 2022, City Council approved a budget of $2,675,800 for the Facility Lease Debt Service program. This represents a decrease of$200(-0.0%)from the FY 2021-22 Adopted Budget. Revenues and Expenditures The following table details revenues, expenditures, changes in fund balance and General Fund costs by category. It includes actuals for two prior fiscal years, the Adopted Budget for the prior fiscal year, and the Adopted Budget for the current fiscal year. Category 2020 Actual 2021 Actual 2022 Adopted Budget 2023 Adopted Budget Revenues Total Revenues $- $- $- $_ Expenditures Contract Services $ 1,500 $- $- $_ Cost Allocation $3,172,837 $2,938,747 $2,676,000 $2,675,800 Total Expenditures $3,174,337 $2,938,747 $2,676,000 $2,675,800 Fund Balance $(3,174,337) $(3,431,579) $(2,676,000) $(2,675,800) General Fund Costs $- $- $- $- Staffing There is no staffing associated with this program. FY 2022-23 Adopted Budget Non-Departmental 586 Appendix FY 2022-23 Adopted Budget Appendix 587 This page intentionally left blank. FY 2022-23 Adopted Budget Appendix 588 All Funds Forecast Schedule General Fund Revenues Classification Actual Adopted Estimate Adopted Forecast Forecast Forecast Forecast Sales Tax 42,576,587 27,855,559 36,911,9% 31,944,0S9 33,374,226 33,374,226 34,084,183 34,793,274 Property Tax 28,277,839 27,84Q341 27,840,341 30,039,574 31,309,702 31,309,702 32,280,957 33,261,335 Transient Oompancy Tax 2,141,058 3,000,000 3,000,000 5,000,000 7,500,000 7,50Q000 7,769,397 8,015,889 Utility Tax 3,074,358 3,245,417 3,245,447 2,955,404 2,975,245 2,975,245 2,995,136 2,995,095 Franchise Fees 3,368,287 3,380,986 3,380,986 3,230,101 3,323,379 3,323,379 3,414,110 3,411,699 Other Taxes 2,639,000 1,248,720 1,248,720 1,787,691 1,850,260 1,850,260 1,8%,517 1,892,816 Licenses and Permits 4,068,238 3,140,195 33,594,629 3,541,012 3,558,717 3,558,717 3,576,511 3,576,511 Use of Money and Property t838,316 1,249,220 1,249,220 1,277,013 2,709,697 2,798,840 2,899,972 3,007,056 Intergovernmental 1,451,076 5,093,946 10,365,946 1,434491 242,853 242,853 244,067 245,288 Charges for Services 11,345,222 12,047,922 14,425,179 11,528,436 11,848,938 11,848,938 12,156,215 12,463,336 Fines and Forfeitures 129,394 225,000 225,000 427,000 427,000 427,000 427,000 427,000 Miscellaneous 1,263,163 1,000,555 1,643,661 1,160,437 1,220,975 1,220,975 1,272,539 1,323,814 Transfersln 507,831 45,000 5,092,387 61,140 - - - - Othei Financing Sources 537,124 275,000 1,638,330 275,000 - - - - TOTAL REVENUES 106,217,493 89,647,891 143,861,842 94,661,388 100,340,993 100,430,137 103,016,605 105,413,' General Fund Expenditures Actual Adopted Estimate Adopted Forecast Forecast Forecast Forecast Employee Compensation 18,441,609 21,806,721 22,415,186 24,295,660 24,937,757 25,623,624 26,328,252 27,052,205 Employee Benefits 8,238,449 10,154,044 10,384,127 11,44Q636 11,711,801 11,898,716 11,608,381 11,667,211 Salary Savings - - - - (1,000,882) (1,024,554) (1,034,943) (1,055,934) Personnel o , Materials 4,2A715 6,639,523 7,455,733 7,226,073 7,478,986 7,6K397 7,880,607 8,061,861 Contract Services 21,106,602 23,773,121 24,983,910 25,019,032 26,242,420 27,344,403 28,413,200 29,469,609 Cast Allocation 10,473,540 11,948,062 ll,948,062 10,385,961 10,671,575 10,965,043 11,266,582 11,576,413 Capital Outlays 4,536,948 - 244,540 - 215,798 221,840 227,386 232,616 Special Projects 1,358,237 3,221,800 29,872,607 3,657,378 2,157,975 2,218,398 2,273,858 2,326,157 Contingencies 293 426,779 400,881 451,739 405,899 417,264 427,695 437,532 Other Financing Uses 319,444 545,000 967,497 695,000 - - - - Non-Personnel Costs 42,043,779 46,554,285 75,873,230 47,435,183 47,172,652 48,855,345 50,489,328 52,104,188 Transfers 15,148,689 11,251,984 26,124,371 11,996,300 12,320,818 12,434,974 12,544,172 12,645,931 TOTAL EXPENDITURES 83,872,526 89,767,034 134,796,914 95,167,779 95,142,145 97,788,106 99,935,190 102,413,602 General Fund Fund Balance Actual Adopted Estiniate Adopted Forecast Forecast Forecast Forecast Beginning Balance 74,505,822 83,259,456 96,850,790 110,610,704 110,104,313 115,303,161 117,945,192 121,026,607 Unassigned 52,449,546 32,243,487 46,068,178 48,332,873 52,110,422 53,242,011 54,718,268 56,011,988 All Other Classifications 44,401,243 64,209,752 64,542,526 61,771,440 63,192,739 64,703,181 66,308,338 68,014,131 Ending Balance 96,850,790 96,592,292WO,610,704 110,104,313 115,303,161 117,945,192 121,026,60�llllllllll FY 2022-23 Adopted Budget Appendix 589 Special Revenue Fund Revenues -Actual Adopted Estimate Adopted Forecast Forecast Forecast Forecast STORM DRAIN IMPROVEMENT(FUNDS 210,215) 406-Taxes 81,471 79,237 79,237 201,229 201,229 201,229 201,229 201,229 420-Use of Money 9,547 - - - - - - - 8 79,237 79,237 201,229 201,229 201,229 201,229 201,229 ENVIRON.MGMT./CLEAN CREEKS/STORM DRAIN(FUND 230) 420-Use of Money 262 908 908 2,248 - - - - 430-Fines and Forfeitures 5,065 10,000 10,000 68,669 68,669 68,669 68,669 68,669 450-Char es for Services 1,475,982 1,543,100 1,543,100 1,510,555 1,510,555 1,510,555 1,510,555 1,510,555 TOTAL 1,481,309; 1,554,008 1,554,008 1,581,472 1, 4 1,579,224 1,579,224 HOUSING&COMMUNITY DEVELOPMENT(FUNDS 260,261,265) 406-Taxes 197,661 3,611,855 3,611,855 8,002,202 8,002,202 8,002,202 8,002,202 8,002,202 420-Use of Money 23,554 3,300 3,300 3,300 3,300 3,300 3,300 3,300 421-Transfer In 200,000 - - 25,000 25,000 25,000 25,000 25,000 440-hitergovemmental 559,010 463,996 801,854 492,181 492,181 492,181 492,181 492,181 450-Charges for Services 7,270 - - - - - - - TRANSPORTATION(FUNDS 270,271) 420-Use of Money 25,257 - - - - - - - 421-Transfer In 4,000,000 6,672,824 6,672,824 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 440-Intergovernmental 3,481,618 3,004,034 3,004,034 3,008,043 3,165,000 3,165,000 3,165,000 3,165,000 450-Charges for Services 235,698 3,978 3,978 1,654 - - - - 480-MiscellaneousRevenue 1,921,336 87,057 87,057 - - - 9,663,909 9,767,893 9,767,893 ,000 6,165,000 6,165,000 PARK DEDICATION(FUND 280) 406-Taxes 104,201 - - - - - - - 420-Use of Money 22,789 - - - 421-Transfer In - 3,650,000 3,650,000 TOTAL 126,990 3,650,000 3,650,000 - - - - - TREE(FUND 281) 420-Use of Money 399 - - 480-Miseellaneous Revenue 600 - - - - - - - TOTAL 999 - - - - - - - - TOTAL SPECIAL REVENUE FUNDS 12,351,720 19,130,289 19,468,147 16,315,081 16,468,136 16,468,136 16,468,136 16,468,136 FY 2022-23 Adopted Budget Appendix 590 Special Revenue Fund Expenditures Actual Adopted Estimate Adopted Forecast Forecast Forecast Forecast STORM DRAIN IMPROVEMENT(FUND 210,215) 210-90-980 SD Master Plan Update 707 210-99-042 Strm Drn Improv-Fthill&Cup Rd 248 - - - - - - - 210-99-071 Storm Drain MP Implementation 45 - - - - - - - 210-99-256 Pumpkin/Fiesta Storm Drain Phl&2 - 2,000,000 2,000,000 - - - - - 1,000 2,000,000 2,000,000 ENVIRON.MGMT./CLEAN CREEKS/STORM DRAIN(FUND 230) 230-81-802 Non Point Source 901,256 1,185,579 1,269,824 1,226,654 1,226,654 1,226,654 1,226,654 1,226,654 230-81-853 Storm Drain Fee 1,105 196 25,196 25,528 - - - - 230-81-854 General Fund Subsidy 8,724 401 22,251 30,215 - - - - 230-81-855 Storm Drain Maintenance 463,581 778,907 840,482 785,002 785,002 785,002 785,002 785,002 230-90-001 No Department - 366,000 366,000 - - - - - 2,331,083 2,523,753 2,067�011,65M 2,011,656j& 2,011,656 2,011,656 HOUSING&COMMUNITY DEVELOPMENT(FUND 260,261,265) 260-72-707 CDBG General Admin 543,628 124,376 238,091 155,589 155,589 155,589 155,589 155,589 260-72-709 CDBG Capital/Housing Projects 229,369 321,484 321,484 337,558 337,558 337,558 337,558 337,558 260-72-710 CDBG Public Service Grants 59,613 63,112 63,112 61,852 61,852 61,852 61,852 61,852 265-72-711 BMR Affordable Housing Fund 665,899 1,309,132 1,484,790 1,222,398 1,222,398 1,222,398 1,222,398 1,222,398 265-90-001NoDepartment - - 200,000 - 475,000 475,000 475,000 475,000 8,104 2,307,4" TRANSPORTATION(FUNDS 270,271) 270-85-820 Sidewalk Curb and Gutter 1,352,502 1,868,903 1,486,680 1,982,206 1,982,206 1,982,206 1,982,206 1,982,206 270-85-821 Street Pavement Maintenance 2,839,703 4,797,069 4,364,286 4,587,213 4,587,213 4,587,213 4,587,213 4,587,213 270-85-822 Street Sign Marking 785,955 901,865 782,894 829,894 829,894 829,894 829,894 829,894 270-90-954 Monument Gateway Sign 90 - - - - - - - 270-90-958 Orange and Byrne Sidewalk Impv 157,883 33,892 270-90-960 Bridge Rehab Minor 13,656 431 270-90-961 St Median Irrg Plant Repl 20,501 - - - - - - - 270-90-962 Bicycle Ped Facility Impr 135 - - - - - - - 270-90-976 Ph 2 Met Sidewalk Improv 19,871 - 270-99-087 Traffic Calming 1,759 - 333 270-99-856 Homestead/DeAnza Signal Upgrade 8,652 215,000 18,197 PARK DEDICATION(FUND 280) 280-99-009 Lawrence-Mitty Park 2,740,290 - 6,348,179 280-99-066 MRP Community Grdn Improv-Const 8,158 32,900 280-99-067 MRP EEC Aquatic Habitat 1,293 - - 280-99-253 Memorial Park-Amphitheater Impry - 1,150,000 1,150,000 280-99-254 Memorial Park-Pond Repurposing - 3,000,000 3,000,000 - - - - - 280-99-255 Memorial Park-Specific Plan Des - 500,000 - - - - - - TOTAL 2,749,741 4,650,000 10,531,079 - - - - TREE FUND(FUND 281) 281-90-001 No Department 15,000 15,000 15,000 - - - - - TOTAL 15,000 15,000 15,000 - - - - - - TOTAL SPECIAL REVENUE FUNDS 10,839,623 18,597,024 24,064,022 11,244,109 11,663,366 11,663,366 11,663,366 11,663,366 FY 2022-23 Adopted Budget Appendix 591 Debt Service Fund Revenues 2026-27 Actual Adopted Estimate Adopted Forecast Forecast Forecast Forecast PUBLIC FACILITIES CORPORATION(FUND 365) 420-Use of Money 332 - - - - - - - 421-TransferIn 3,169,138 2,621,000 2,621,000 2,675,800 2,677,600 2,676,200 2,676,600 2,673,600 490-Other Sources 25,918,704 - - - - - - - - TOTAL 29,088,174 2,621,000 2,621,000 2,675,800 2,677,61W-2,676,200 2,676,600 2,673,600 TOTAL DEBT SERVICE FUNDS 29,088,174 2,621,000 2,621,000 2,675,800 2,677,600 2,676,200 2,676,600 2,673,600 Debt Service Fund Expenditures 2026-27 Actual Adopted Estimate Adopted Forecast Forecast Forecast Forecast PUBLIC FACILITIES CORPORATION(FUND 365) 365-90-001 No Department 27,279,118 - - - - - - - 365-90-500 Facility Lease 3,431,579 2,676,000 2,676,000 2,675,800 2,677,600 2,676,200 2,676,600 2,673,600 TOTA� 2,676,000 2,676,000 2,675,800 2,677,600 2,676,200 2,676,600 2,673,600 �WOTAL DEBT SERVICE FUNDS 30,710,E 2,676,000 2,676,000 2,675,800 2,677,600 2,676,200 2,676,600 2,673,600 FY 2022-23 Adopted Budget Appendix 592 Capital Project Fund Revenues Classification , 02026-27 Actual Adopted Estimate Adopted Forecast Forecast Forecast Forecast CAPITAL IMPROVEMENT PROJECTS(FUND 420) 420-Use of Money (339,568) - - 421-Transfer In 1,430,000 7,557,048 7,687,283 440-Intergovernmental - 385,952 3,781,952 480-Miscellaneous Revenue 2,347,037 - 2,640,930 TOTAL 3,437,469 7,943,000 14,110,165 - - - - - CAPITAL RESERVE(FUND 429) 420-Use of Money (130,788) - - - - - - - 421-Transfer In 5,000,000 10,000,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 TOTAL 5,00�llllll - 10,000,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 - TOTAL CAPITAL PROJECT FUNDS 8,jL7,4A11111W43,000 24,110,165 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 FY 2022-23 Adopted Budget Appendix 593 Capital Project Fund Expenditures Program , 02026-27 Actual Adopted Estimate Adopted Forecast Forecast Forecast Forecast CAPITAL IMPROVEMENT PROJECTS(FUND 420) 420-90-001 No Department - - - 23,600 - - - - 420-90-880 Env Edu Facility 185 - - - - - - - 420-90-898 SCCP Chain MP-MCLN TO SCB 405 - - - - - - - 420-90-904 Spt Ctr Resurf Tennis Cts 45 - - - - - - - 420-90-938 Pub Bldg Solar Service Center 6,964 - - - - - - - 420-90-969 DeAnza/McClellan Signal Maint 90 - - - - - - - 420-90-971 STLG/280 Ped Bridge Lighting 252 - - - - - - - 420-90-999 Green Bike Lanes 90 - - - - - - - 420-99-003 MR Construct Trash Enclosure 1,601 - - - - - - - 420-99-004 MR Community Garden Improvements 1,157,112 - 56,242 - - - - - 420-99-007 ADA Improvements 127,200 90,000 - 95,000 - - - - 420-99-014 Stevens Crk Bank Repair Concept 69,874 - - - - - - - 420-99-017 Sports Center Exterior Upgrades 21,201 - - - - - - - 420-99-018 Sports Center Interior Upgrades 358 420-99-023 QCC Fire Alarm Control Panel Upg 5,626 - - - - - - - 420-99-030 MCClellan West-Parking Lot Impro 63,637 - 3,808 - - - - - 420-99-031 Rec Facilities Monument Signs 3,609 - - - - - - - 420-99-033 City Hall-Turf Reduction 1,838 - - - - - - - 420-99-034 Svc Ctr-Shed No.3 Improvement 10,921 - - 420-99-036 2016 Bike Plan Implementation 3,791,987 2,000,000 2,188,693 - - - - - 420-99-040 Retaining Wall Repair-Cordova Rd Z837 - - - - - - - 420-99-041 Retaining Wall Repl-Regnart Rd 180 - - - - - - - 420-99-045 Citywide Park&Recreation MP 3,321 - - - - - - - 420-99-047 CIP Prelim Planning&Design 7,439 125,000 1,350 125,000 125,000 125,000 125,000 125,000 420-99-048 Capital Project Support 4,345 50,000 4,902 50,000 50,000 50,000 50,000 50,000 420-99-051 Inclusive Play Area-Planning 9,553 - 84,541 850,000 - - - - 420-99-054 Senior Ctr Walkway Replacement 2,014 - - - - - - - 420-99-056 St Light Install-Annual Infill 536 75,000 34,467 75,000 - - - - 420-99-057 McClellan Sdwlk-RB to Hwy85 Over 45 - - - - - - - 420-99-058 St Light Install-Randy&Larry 3,896 - - - - - - - 420-99-059 Senior Center Repairs 10,297 - - - - - - - 420-99-063 CW Bldg Condition Assess Impl 155,287 - - - - - - - 420-99-064 Creek Infall/Outfall Restoration 1,605 - - - - - - - 420-99-065 DeAnza Med Ishid Landscaping Ph2 14,867 - - - - - - - 420-99-068 Regnart Road Improvements 84,544 - 279,442 - - - - - 420-99-069 School Walk Audit Implementation 132,692 - 597 - - - - - 420-99-070 SCB/Bandley Signal&Median Imps 827 - - - - - - - 420-99-072 St Light Replacement CW(labor) 17,960 110,398 420-99-073 BBF Park Pool Improvements 446 750,000 3,920 - - - - - 420-99-074Interim City Hall 1,162 - - - - - - - 420-99-075 New City Hall 90 - - - - - - - 420-99-077 Library Expansion 2,840,447 - 5,752,014 - - - - - 420-99-078 Civic Center Parking Analysis 68,299 11,873 420-99-079 Mary Ave Protected Bikeway 1,051 - 6,439 - - - - - 420-99-080 Bubb Rd Separated Bikeway Improv 680,298 - 192,194 - - - - - 420-99-083 Citywide Community Garden 16,822 - 25,736 - - - - - 420-99-084 Linda Vista Trail 488,350 - 32,390 - - - - - 420-99-085 Playground EQ(Creekside&Varian) - 300,000 15,127 300,000 420-99-086 Various Park Amenities - 200,000 8,934 200,000 - - - - 420-99-24810455 Torre Ave Improvements - 3,000,000 78,133 - - - - - 420-99-249 Carmen Road Bridge Right-of-Way - 75,000 3,067 - - - - - 420-99-250 City Hall&Community Hall Imprv, - 500,000 4%333 - - - - - 420-99-251 EV Parking Expansion - 408,000 - - - - - - 420-99-252 Full-Sized Outdoor Basketball Ct - 350,000 65,483 - - - - - 420-99-257 Stelling(Alves Crosswalk Install - 80,000 30,118 - - - - - 420-99-258 City Lighting LED Transition Ass - 50,000 - 1,300,000 - - - - 420-99-259 Tree Inventory-Stevens Creek Cor - 65,000 - - - - - - 420-99-262 De Anza Blvd Buffered Bike Lanes - - - 525,000 - - - - 420-99-264 City owned properties Analysis - - - 90,000 - - - - TOTAL 9,812,205 STEVENS CREEK CORRIDOR PARK(FUND 427) 427-90-870 SC Corridor Park Ph 1 626 - 38,115 - - - - - 427-90-881 Phs II SC Corridor Park 15,225 - 21,431 - - - - - OTAL 15,851 - W 59,546 - - - - CAPITAL RESERVE(FUND 429) 429-90-001 No Department 1,989,449 11,422,048 11,422,048 - - - - - TOTAL 1,989,449 11,422,048 11,422,048 - - - - - APITAL PROJECT FUNDS 11,817,505 19,540,048 20,514,795 3,633,600 175,000 175,000 175,000 175,000 FY 2022-23 Adopted Budget Appendix 594 Enterprise Fund Revenues Classification , 02026-27 Actual Adopted Estimate Adopted Forecast Forecast Forecast Forecast RESOURCE RECOVERY(FUND 520) 420-Use of Money 14,794 - - - - - - - 440-hitergovemmental 14,916 14,000 14,000 14,000 14,000 14,000 14,000 14,000 450-Charges for Services 1,804,946 1,470,578 1,470,578 1,188,642 1,188,642 1,188,642 1,188,642 1,188,642 480-Miscellaneous Revenue - 10,000 10,000 10,000 - - - - T 4,656 1,494,578 1,494,578Aw,212,642 1,202,642 1,202,642 1,202,642 1,202,642 BLACKBERRY FARM GOLF COURSE(FUND 560) 420-Use of Money 48,562 30,000 44,000 33,000 33,000 33,000 33,000 33,000 421-Transfer In 500,000 79,992 79,992 23,600 23,600 23,600 23,600 23,600 450-Charges for Services %4,126 310,000 516,000 400,600 400,600 400,600 400,600 400,600 TO 457,200 457,200 457,200 ' 457,200 SPORTS CENTER(FUND 570) 420-Use of Money 284,724 351,000 351,000 350,000 350,000 350,000 350,000 350,000 421-Transfer In 685,000 - - - - - - - 450-Charges for Services 1,537,387 2,350,000 2,350,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 JkLAL 2,507,111 2,701,000; 2,701,000 2,600,000 2,600,000 2,600,000 2,600,000 2,600,000 RECREATION PROGRAMS(FUND 580) 420-Use of Money 89,223 312,000 312,000 317,000 317,000 317,000 317,000 317,000 421-Transfer In 1,664,000 806,809 806,809 376,000 1,078,988 1,109,199 1,136,929 1,163,078 450-Charges for Services 508,938 1,087,000 1,087,000 1,219,550 1,219,550 1,219,550 1,219,550 1,219,550 TOTAL 2,262,061 2,205,809 2,205,809 1,912,550 2,615,538 2,645,749 2,673,479 2,699,628 TOTAL ENTERPRISE FUNDS 7,716,516 6,821,379 7,041,379 6,182,392 6,875,380 6,905,591 6,933,321 6,959,470 Enterprise Fund Expenditures 2026-27 Actual Adopted Estimate Adopted Forecast Forecast Forecast Forecast RESOURCE RECOVERY(FUND 520) 520-81-801 Resources Recovery 1,670,262 2,222,096 2,652,855 2,285,090 2,285,090 2,285,090 2,285,090 2,285,090 TOTAL 1,670,262 2,222,096 2,652,855 2,285,090 2,285,090 2,285,090 2,285,090 2,285,090 BLACKBERRY FARM GOLF COURSE(FUND 560) 560-63-616 BBF Golf Course 532,667 679,646 849,646 668,446 566,670 566,670 566,670 566,670 560-87-260 BBF Golf Maintenance - - - 133,586 572 572 572 572 560-90-001 No Department 606 404 404 404 - - - - 560-99-061 BBF Entmc Rd Improv-Feasibility 2,002 - 1,261 - - - - - 560-99-088 BBF Golf Renovation/Alt use - - 76,400 23,600 - -1.0,050 ANIOL 826,^" EMMNN SPORTS CENTER(FUND 570) 570-63-621 Sports Center Operation 1,843,980 2,902,360 2,902,360 2,876,082 2,294,634 2,294,634 2,294,634 2,294,634 570-87-836 Bldg Maint Sports Center 448,790 623,052 664,946 640,197 481,106 481,106 481,106 481,106 570-90-001 No Department 2,430 1,621 1,621 1,621 2,295 2,295 2,295 2,295 570-99-081 Sports Center Seismic Retrofit (112,301) - 310,878 - - - - - 570-99-089 Spt Ctr Community Needs Analysis - - 25,000 - - - - - 3,527,033 3,904,805 RECREATION PROGRAMS(FUND 580) 580-62-613 Youth Teen Recreation 559,735 1,828,845 1,82B,845 1,504,209 1,168,483 1,168,483 1,168,483 1,168,483 580-63-620 Outdoor Recreation 555,445 1,158,012 1,158,012 869,015 686,573 686,573 686,573 686,573 580-90-001 No Department 1,622 1,081 1,081 1,081 1,531 1,531 1,531 1,531 580-99-082 Quinlan Preschool Shade Structur 442 - 53,954 - - - - 580-99-090 QCC Sustainable Infrastructure - - 484,606 - - - - - TOTAL 1,117,244 2,987,938 3,526,498 ,374,305 1,856,587 1,856,587M 1,856,587 1,556,5ZF7 00001mr-TOTAL ENTERPRISE FUNDS 5,505,680 9,417,117 11,011,869 9,003,331 7,486,954 7,486,954 7,486,954 7,486,954 FY 2022-23 Adopted Budget Appendix 595 Internal Service Fund Revenues 2026-27 -Actual Adopted Estimate Adopted Forecast- Forecast Forecast Forecast INFORMATION TECHNOLOGY(FUND 610) 420-Use of Money 9,344 - - - - - - - 421-Transfer In 245,000 192,078 192,078 2,537,500 2,157,975 2,218,398 2,273,858 2,326,157 450-Charges for Services 2,681,431 2,959,603 2,959,603 2,485,218 2,495,218 2,495,218 2,485,218 2,485,218 TOTAL 2,935 7 3,151,681 5,022,718 4,67193 7 ,16 4,759,076 4,811,375 WORKERS'COMPENSATION(FUND 620) 420-Use of Money 9,914 - - - - - - - 490-Other Sources 246,381 356,839 356,839 436,145 - - - - TOTAr5 356,839 436,145 - - VEHICLE/EQUIPMENT REPLACEMENT(FUND 630) 420-Use of Money 2,032 - - - - - - - 421-Transfer In 6,000 366,000 366,000 - - - 450-Chargesfor Services 1,633,518 1,718,598 1,718,598 1,568,633 1,568,633 1,568,633 1,568,633 1,568,633 480-Miscellaneous Revenue 9,799 - - - - - - - 490-Other Sources 89,981 - - - - - - - TOTAL ,633 1,368,633 1,368,633 COMPENSATED ABSENCE&LONG-TERM DISABILITY(FUND 641) 420-Use of Money 4,155 - - - - - - - 421-TransferIn 193,000 21,570 21,570 882,000 906,255 931,177 956,784 983,096 450-Charges for Services 128,134 - - - - - - - TOTAINEEIREPIOW 21,570 ■ 21,570 882,0�906,255 931,177 956,7841mbw,096 RETIREE MEDICAL(FUND 642) 420-Use of Money 7,853 - - - - - - - 421-Transfer In 46,000 1,072,711 1,072,711 - 1,388,276 1,388,276 1,388,276 1,388,276 TOTAL 53,853 1,072,711 1,072,711 - 1,388,276 1,388,276 1,388,276 1,388,276 -TOTAL INTERNAL SERVICE FUNDS 5,312,542 6,687,399 6,687,399 7,909,496 8,506,357 8,591,702 8,672,770 8,751,380 Internal Service Fund Expenditures Program , 02026-27 Actual Adopted Estimate Adopted Forecast Forecast Forecast Forecast INFORMATION TECHNOLOGY(FUND 610) 610-30-300 Administration 320,982 269,624 325,261 341,934 329,392 329,392 329,392 329,392 610-34-310Infrastructure 1,913,363 2,202,453 2,344,933 2,721,957 2,326,751 2,326,751 2,326,751 2,326,751 610-35-986 GIS 1,087,053 1,424,906 1,570,808 1,546,226 1,401,362 1,401,362 1,401,362 1,401,362 MI&AL 3,321,398 1&9fiM3 4,057,506 4,057,506 WORKERS'COMPENSATION(FUND 620) 620-44-418 Workers Compensation Insurance 98,092 434,840 434,840 516,946 516,946 516,946 516,946 516,946 98,0 ,840 434,840 1, 6, 6,946 516, 516,946 VEHICLE/EQUIPMENT REPLACEMENT(FUND 630) 630-85-849 Equipment Maintenance 1,464,347 1,557,044 1,614,764 1,594,350 1,594,350 1,594,350 1,594,350 1,594,350 630-90-001 No Department 116 - - - - - - - 630-90-985 Fixed Assets Acquisition 9,022 1,001,017 1,084,813 7,844 7,844 7,844 7,844 7,844 2,558,061 2,699,577 1,602,194 1,602,194 1,602,194 1,602,194 1,602,194 COMPENSATED ABSENCE&LONG-TERM DISABILITY(FUND 641) 641-44-419 Long Term Disability 124,622 95,612 95,612 98,523 98,523 98,523 98,523 98,523 641-44-420 Compensated Absence 710,265 620,590 620,590 646,650 646,650 646,650 646,650 646,650 TOTAL 834,88'W 716,202'W 716,202 IW745, ,173 745,1731W 745,173 RETIREE MEDICAL(FUND 642) 642-44-414 HIi Retiree Benefits 1,231,056 1,241,926 1,241,926 1,388,276 1,388,276 1,388,276 1,388,276 1,388,276 TOTAL 1,231,056 1,241,926 1,241,926 1,388,276 1,388,276 1,388,276 1,388,276 1,388,276 -TOTAL INTERNAL SERVICE FUNDS 6,958,918 8,848,012 9,333,547 8,862,706 8,310,095 8,310,095 8,310,095 8,310,095 FY 2022-23 Adopted Budget Appendix 596 All Funds Fund Balance Actual Adopted Estimate Adopted Forecast Forecast Forecast Forecast GENERALFUNDS Beginning Balance 74,505,822 83,259,456 96,850,790 110,610,704 110,104,313 115,303,161 117,945,192 121,026,607 Assigned 52,449,546 32,243,487 46,068,178 48,332,873 52,110,422 53,242,011 54,718,268 56,011,988 Unassigned 44,401,243 64,209,752 64,542,526 61,771,440 63,192,739 64,703,181 66,308,338 68,014,131 Ending BalancW6,850,7 ,453,239 PF21,026,60711MJM,026,118 SPECIAL REVENUE FUNDS Beginning Balance 31,995,174 28,888,315 33,507,271 28,911,396 33,982,368 38,787,138 43,591,908 48,396,678 Assigned 33,507,271 32,221,580 28,911,396 33,982,368 38,787,138 43,591,908 48,396,678 53,201,448 Unassigned - - - - - - - - Ending Balance 33,507,271 32,221,580 43,591,908 48,396,678 53,201,448 DEBT SERVICE FUNDS Beginning Balance 1,685,872 55,016 63,350 8,350 8,350 8,350 8,350 8,350 Assigned 63,350 54,816 8,350 8,350 8,350 8,350 8,350 8,350 Unassigned - - - - - - - - Ending Balance 63,350 MEOW-8,350 CAPITAL PROJECT FUNDS Beginning Balance 40,551,134 39,384,351 37,038,174 40,633,544 39,499,944 41,824,944 44,149,944 46,474,944 Assigned 37,038,174 39,20%351 40,633,544 39,499,944 41,824,944 44,149,944 46,474,944 48,799,944 Unassigned - - - - - - - - Ending Balance 37,038,174 39,209,351 40,633,544 39,499,944 41,824,944 44,149,944 46,474,944 48,799,944 ENTERPRISE FUNDS Beginning Balance 9,253,822 6,935,949 11AK658 7,494,168 4,673,229 4,061,654 3,480,292 2,926,659 Assigned 11,464,658 4,410,211 7,494,168 4,673,229 4,061,654 3,480,292 2,926,659 2,399,175 Unassigned - - - - - - - - Ending Balance 11,464,658 4,410, 2,926,659 2,399,175 INTERNAL SERVICE FUNDS Beginning Balance 7,959,449 6,313,071 6,313,071 3,666,923 2,713,713 2,909,975 3,191,582 3,554,257 Assigned 6,313,071 3,051,606 3,666,923 2,713,713 2,909,975 3,191,582 3,554,257 3,995,543 Unassigned - - - - - - - - Ending Balance 6,313,071 — 3,051, TOTAL ALL FUNDS 185,237,313 175,400,802 191,325, , FY 2022-23 Adopted Budget Appendix 597 CIP Schedule Project Budget Unit Revenue Expense Fund Balance' CATEGORY 1-NEW PROJECTS City Lighting-LED Lighting 420-99 258 - 1,300,000 (1,300,000) De Anza Boulevard Buffered Bike Lanes 420-99 262 - 525,000 (525,000) Jollyman All Inclusive Play Area:Adult Assistive Bathroom Facilities 420-99-051 - 850,000 (850,000) Stocklmeir,Byrne and Blesch:Inspection Reports and Analysis' 420-99 264 - 90,000 (90,000) TAL CATEGOR - 2,765, (2,765,000) CATEGORY 2-MULTI-YEAR FUNDING ADA Improvements 420-99-007 - 95,000 (95,000) Annual Playground Replacement 420-99-085 - 300,000 (300,000) Park Amenity Improvements 420-99-086 - 200,000 (200,000) Street Light Installation-Annual Infill 420-99-056 - 75,000 (75,000) TOTAL CATEGOR (670,000) CATEGORY 3-EXISTING PROJECTS-FUNDED - Blackberry Farm Golf Renovation/Alternative Use StudyZ 560-99-088 - 23,600 (23,600) OTAL CATEGOR (23,600) CAPITAL PROJECT PLANNING AND SUPPORT CIP Preliminary Planning and Design 420-99-047 - 125,000 (125,000) Capital Project Support 420-99-048 - 50,000 (50,000) T CAPITAL PROJECT PLANNING AND SUPPOR TRANSFERS Transfer to Enterprise Funds 420-90-001 - 23,600 (23,600) Transfer from Capital Projects Funds 560-99-088 23,600 - 23,600 TOTAL TRANSFE 3,600 23,600 - TOT 3,600 $ 3,657,200 $ (3,633,600) lStocklmeier, Byrne, and Blesch: Inspection Reports and Analysis is listed in the City Work Program as Study Session on City-Owned Properties. 2Blackberry Farm Golf Course/Alternative Use Study is listed in the City Work Program as Blackberry Farm Golf Course Needs Assessment. The $23,600 budgeted in FY 2022-23 is in addition to the $76,400 budgeted in FY 2021-22. FY 2022-23 Adopted Budget Appendix 598 Personnel Schedule COUNCIL AND COMMISSIONS City Council 0.30 1.15 1.05 0.85 0.85 0.85 0.00 0.85 Sister Cities 0.05 0.10 0.10 0.40 0.10 0.10 0.00 0.10 Technology,Information&Communications Commission 0.10 0.00 0.00 0.05 0.07 0.07 0.00 0.07 Library Commission 0.05 0.05 0.05 0.03 0.10 0.15 -0.05 0.10 Fine Arts Commission 0.15 0.15 0.15 0.15 0.15 0.15 0.00 0.15 Public Safety Commission 0.00 0.00 0.05 0.05 0.05 0.05 0.00 0.05 Bicycle and Pedestrian Commission 0.00 0.00 0.00 0.00 0.15 0.15 0.00 0.15 Parks and Recreation Commission 0.10 0.10 0.10 0.12 0.10 0.10 0.00 0.10 Teen Commission 0.30 0.30 0.30 0.30 0.30 0.30 -0.25 0.05 Planning Commission 0.25 0.25 0.30 0.31 0.26 0.26 0.00 0.26 Housing Commission 0.15 0.15 0.15 0.15 0.15 0.15 0.00 0.15 Sustainability Commission 0.10 0.10 0.10 0.10 0.15 0.15 0.00 0.15 Audit Committee 0.00 0.00 0.00 0.00 0.10 0.10 0.00 0.10 OTAL COUNCIL AND COMMISSIONS 1.55 ADMINISTRATION City Manager 3.02 3.37 3.62 4.90 3.90 4.90 3.00 7.90 Sustainability 1.55 1.80 1.80 1.40 1.80 1.80 0.00 1.80 Office of Communications 0.00 1.85 2.15 2.65 2.95 2.95 -0.30 2.65 Video 0.00 0.00 0.00 0.00 3.00 3.00 -1.50 1.50 Community Outreach&Neighborhood Watch 0.00 0.00 0.00 0.75 0.75 0.75 0.25 1.00 Office of Emergency Management 0.00 0.00 0.00 0.95 0.95 1.95 0.00 1.95 Economic Development 0.00 0.00 0.00 1.00 1.00 0.00 1.00 1.00 City Clerk 3.00 3.10 2.90 2.50 2.50 2.50 1.00 3.50 City Attorney 3.00 4.00 5.00 1.00 1.00 1.00 2.00 3.00 TOTAL ADMINISTRATION 10.57V4.12 15.47 15. INNOVATION AND TECHNOLOGY Administration 2A5 0.85 0.70 0.55 0.53 0.53 0.00 0.53 Cupertino Scene 0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Video 3.40 3.25 3.20 3.25 0.00 0.00 1.50 1.50 Applications 0.80 3.20 3.45 3.45 3.50 3.50 0.00 3.50 Infrastructure 4.70 4.60 4.50 4.50 4.50 4.50 0.00 4.50 GIS 2.30 2.65 3.20 3.20 3.40 3.40 0.00 3.40 TOTAL INNOVATION AND TECHNOLOGY 111111111L 15.05 14.95 11.93 11.93 - ADMINISTRATIVE SERVICES Administration 2.50 2.80 3.80 3.80 3.75 3.75 0.00 3.75 Finance 6.30 6.00 7.00 8.00 7.95 7.95 2.00 9.95 Human Resources 3.50 3.20 3.20 4.20 4.20 5.20 0.00 5.20 TOTAL ADMINISTRATIVE SERVICES 12.30 12.0 16.00 15.90 16.90 2.00 18.90 PARKS AND RECREATION Administration 2.85 2.90 3.85 4.55 4.55 4.50 2.20 6.70 Business and Community Services 9.55 10.60 10.30 8.00 7.45 6.25 0.25 6.50 Recreation and Education 11.85 10.70 10.00 10.05 10.55 8.55 -1.80 6.75 Sports,Safety and Outdoor Recreation 8.83 10.93 10.65 9.50 9.35 8.58 0.95 9.53 OTAL PARKS AND RECREATION 33.08 35.1 FY 2022-23 Adopted Budget Appendix 599 1 FY 20-21 COMMUNITY DEVELOPMENT Administration 0.55 0.55 0.55 0.60 0.50 0.50 0.00 0.50 Planning 10.63 10.63 10.58 9.67 9.97 13.07 1.60 14.67 Housing Services 0.80 0.80 0.80 0.80 0.80 1.70 1.40 3.10 Building 13.95 13.85 13.95 13.97 14.22 15.22 0.00 15.22 Economic Development 1.00 1.00 1.00 0.00 0.00 0.00 0.00 0.00 Muni/Building Code Enforcement 1.25 1.25 1.25 0.25 0.00 0.00 0.00 0.00 Code Enforcement 0.00 0.00 0.00 3.00 3.00 3.00 1.00 4.00 TOTAL COMMUNITY DEVELOPMENT PUBLIC WORKS Administration 3.25 3.25 3.25 2.05 3.05 3.05 0.40 3.45 Environmental Programs 6.22 6.27 6.20 6.10 7.55 8.52 0.05 8.57 Development Services 7.40 7.50 8.50 11.50 11.20 11.70 0.85 12.55 Service Center 3.70 3.05 2.55 3.65 3.50 3.50 -0.25 3.25 Grounds 19.75 19.60 20.00 20.00 20.00 20.00 0.00 20.00 Streets 13.65 13.95 13.95 13.95 13.45 13A5 0.95 14AO Trees and Right of Way 16AO 16.40 16.00 17.00 17.00 17.00 0.00 17.00 Facilities and Fleet 8.15 8.00 8.00 8.00 8.00 8.00 0.00 8.00 Transportation 5.60 6.50 6.50 6.50 6.40 6.90 0.00 6.90 TOTAL PUBLIC WORKS 88.75 90.15 92.12 - LAW ENFORCEMENT Code Enforcement 2.00 2.00 2.00 0.00 0.00 0.00 0.00 0.00 TOTAL LAW ENFORCEMENT 2.00 2.00 2.00 0.00 0.00 0.00 0.00 0.00 TOTAL BENEFITTED POSITIONS 185.75 192.75 196.75 197.75 198.75 203.75 16.25 220.00 TOTAL BENEFITTED POSITIONS&COUNCILMEMBERS 190.75 197.75 201.75 202.75 203.75 208.75 16.25 225.00 FY 2022-23 Adopted Budget Appendix 600